Farmweek november 17, 2014

Roundy’s Steve Jarzombek shares his passion for farmers at the Local/Regional Food Summit. page 5

Seventeen county Farm Bureaus donate $50,000 to a new Springfield Kidzeum farm exhibit. page 11

Group agrees to ‘Big Data’ principles Monday, November 17, 2014

BY DEANA STROISCH FarmWeek

A group of major farm organizations and ag technology providers (ATPs) reached agreement last week on how to protect farm data.

The agreement, titled “Privacy and Security Principles for Farm Data,” addresses concerns ranging from data ownership to third-party access and use of farm information.

Those signing the agreement effective Nov. 13 include: American Farm Bureau Federation, American Soybean Association, Beck’s Hybrids, Dow AgroSciences LLC, DuPont Pioneer, John Deere, National Association of Wheat Growers, National Corn Growers Association, Raven Industries, The Climate Corp. (a division of Monsanto) and USA Rice Federation.

Doug Yoder, Illinois Farm Bureau’s senior director of affiliate and risk management, said the agreement addresses nearly all concerns outlined in IFB policy. It doesn’t, however, specify that producers should receive fair compensation for their data.

“If this is implemented to a large degree across the agribusiness world, I think that would greatly ease farmers’ minds and allow them to adopt these new technologies faster,” Yoder said.

Periodicals: Time Valued

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Thomas Titus of Elkhart joins a group of five new Faces of Farming and Ranching. page 2

Two sections Volume 42, No. 46

Among the principles agreed to: • Ownership: Farmers own information generated on their farming operations. It’s the farmer’s responsibility to agree upon data use and sharing with the other stakeholders (such as the tenant, landowner, cooperative, owner of the precision agriculture system hardware, and/or ATP.) The farmer contracting with the ATP must make sure only the data they own or have permission to use is included in the account.

• Collection, access and control: An ATP’s collection, access and use of farm data should be granted only with the affirmative and explicit consent of the farmer through contract agreements, whether signed or digital.

• Notice: Farmers must be notified their data is being collected and about how the farm data will be disclosed and used.

This notice must be provided in an easily located and readily accessible format.

• Third-party access and use: Farmers and ranchers also need to know who, if anyone, will have access to their data beyond the primary ATP and how they will use it.

• Transparency and consistency: ATPs shall notify farmers about why they are collecting farm data. Farmers also should be given informa-

tion about how to contact the ATP, the types of third parties to which they disclose the data, and the choices the ATP offers for limiting its use and disclosure. An ATP’s principles, policies and practices should be transparent and fully consistent with the terms and conditions

in their legal contracts. An ATP will not change the customer’s contract without his or her agreement.

• Choice: ATPs should explain the effects and abilities of a farmer’s decision to opt in, opt out or disable the availability of services and features

offered by the ATP. If multiple options are offered, farmers should be able to choose some, all or none of the options offered. ATPs should provide farmers with a clear understanding of what services and See Data, page 4

PLOWING THE OLD-FASHIONED WAY

Lori and Terry Parkin of Manito head their Farmall 450 tractor toward a plowing line during a recent antique tractor plowing bee near Minier. The Parkins celebrated their fourth year of participating in the annual event founded in 2002 by Tazewell County farmer Louis Weishaupt. About 30 antique tractor owners participated. (Photo by Ken Kashian)

Drop in farm prices, rising debt concerning

BY DANIEL GRANT FarmWeek

Despite the plunge in crop prices, the financial position on many farms remains strong by historical standards.

The debt-to-asset ratio on U.S. farms this year hovers around 10.8 percent, one of the lowest levels since the 1970s when the ratio averaged around 15 percent, according to USDA. The default rate on ag loans through 2013 (1.4 percent) also ranked among the lowest since the 1970s, according to Allen Featherstone, ag economist at Kansas State University.

Farmers and ag bankers, however, shouldn’t get too comfortable with recent economic performance. The drop in crop prices and rising debt in the ag industry pose reasons

for concern, according to Featherstone and other economists last week at the National Agricultural Bankers Conference in Omaha, Neb. “The default rate (on farm loans) is the lowest since the early 1970s,” Featherstone said. “But this can change quickly.”

Farmers simply need to flash back 35 years for a reminder of how quickly their financial positions can change.

Allen Farmers’ repayment capacity on loans Featherstone crashed from 152.8 percent in 1979 to just 16.3 percent in 1981. The situation was caused by a run-up See Debt, page 4

www.facebook.com/illfarmbureau

Quick Takes

FarmWeek • Page 2 • Monday, November 17, 2014

GREEN STEM SURVEY UNDER WAY — If green stem disease developed in your soybean fields this year, the United Soybean Board (USB) wants to know.

Working with the USB, the Illinois Soybean Association encourages participation in a survey to determine where and how the disease spreads as well as field conditions associated with it.

Growers can complete and submit the survey at {ilsoy.org/ 2014-green-stem-disorder-survey}.

COUNTRY LIFE PAYING DIVDENDS — COUNTRY Life Insurance Company plans to pay an estimated $74 million in dividends to eligible policyholders in 2015.

“Whole life insurance contributes to the financial security of many of our customers, so we’re pleased to pay strong dividends and keep dividend scales unchanged in 2015,” said Kelvin Schill, COUNTRY senior vice president of Financial Service Operations.

The estimated $74 million dividend represents an increase of 3 percent compared to a 2014 estimated dividend of $72 million.

BANE NAMED COUNTRY VICE PRESIDENT — Sheri Bane of Arrowsmith has been named COUNTRY Financial vice president of commercial/agribusiness underwriting. In her new position, she will oversee all efforts related to underwriting, product development, training, loss control and field support for farm, crop and commercial lines of business.

Bane joined COUNTRY in 1985 as a farm underwriter. She most recently served as director of commercial/agribusiness underwriting.

Bane received a bachelor’s degree in agriculture economics from the University of Illinois. She furthered her insurance education and earned the Chartered Property Casualty Underwriter designation. She graduated from the Illinois Agricultural Leadership Program in 2010.

Active in the Crop Insurance and Reinsurance Bureau, Bane serves as vice president and chair-elect of the national trade association.

COUNTY COMMITTEE BALLOTS MAILED — Farmers should soon receive Farm Service Agency (FSA) County Committee election ballots. The ballots must be returned to local FSA offices by Dec. 1.

FSA County Committee members serve as a link between the local agricultural community and USDA. Farmers elected to county committees help deliver FSA programs at the local level, applying their knowledge and judgment to make decisions on commodity support programs; conservation programs; indemnity and disaster programs; emergency programs and eligibility.

Eligible voters must be participating or cooperating in an FSA program. Eligible voters who do not receive ballots may pick one up at their local FSA office.

Newly elected committee members and their alternates will take office Jan. 1, 2015.

(ISSN0197-6680) Vol. 42 No. 46 November 17, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

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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

Barbara McLean, left, consults with Nancy Waters, co-owner of Golden Bridges of Quincy, a senior move management company. McLean received help planning her living space at Curtis Creek, a senior independent living community in Quincy. Golden Bridges ranks among 10 semifinalists for American Farm Bureau Federation’s first-ever Rural Entrepreneurship Challenge. (Photo by Cyndi Cook)

Illinois business named AFBF challenge semifinalist

BY DEANA STROISCH FarmWeek

A Quincy-based senior move management company ranks among 10 semifinalists for American Farm Bureau Federation’s first-ever Rural Entrepreneurship Challenge.

Golden Bridges joins more than 200 applicants for the national challenge intended to showcase ideas and business innovations being cultivated in rural areas of the United States. AFBF President Bob Stallman said semifinalists “are proof that great business ideas can be generated anywhere.”

In Quincy, the idea started among three friends: Suzanne Ellerbrock, Susan Scholz and Nancy Waters.

The women, who met while working at Quincy Healthcare Management, wanted to give back to the community — and do so while working their full-time jobs.

They found the website for the National Association of Senior Move Managers and decided to start their own business, uniquely focused on the rural, 100-mile area around Quincy.

Waters described themselves as the “wedding planners of the senior move.”

Clients can pick and choose services that fit their needs. Among the services: sorting belongings, decluttering, packing and unpacking, and coordinating utilities.

Some clients don’t have family. Some don’t have family nearby. Others, Waters said, don’t want family to help.

“We’ve been through it,” Waters said. “We

know there are challenges. We feel that we can make a difference in a way there isn’t anybody else doing it in our area.

“Our end product is really peace of mind,” she added.

Donald Durbin and his wife, Joann, needed help moving from their family home of more than 30 years to a senior living condo in Quincy.

Durbin said he heard a radio advertisement for Golden Bridges and called.

The couple, now in their 70s, didn’t have anyone to help them move.

“They really did a good job,” Durbin said.

“Took a lot off our mind, and a load off our body. They moved us, packed everything well — and did everything.

“They were real good to work with. We were really satisfied. If I had to do it myself, I couldn’t have got it done.”

The business has had 33 clients since it opened in April 2013. Eventually, all three plan to work for Golden Bridges full time.

Waters said the women are humbled to be among the semifinalists for the award. Following a series of virtual team interviews, judges will choose four finalists to pitch their business ideas to a judging team at the AFBF Annual Convention in January.

Finalists will each receive $15,000 to further implement their ideas. One finalist will earn the Rural Entrepreneur of the Year Award and an additional $15,000. A People’s Choice Award winner will receive $10,000.

Titus named Face of Farming

With the votes tabulated and interviews completed, Thomas Titus of Elkhart joins four other farmers as U.S. Farmers & Ranchers Alliance (USFRA) Faces of Farming and Ranching.

USFRA announced the winners last week following an online voting campaign. Titus joins Erin Brenneman of Iowa, Darrell Glaser of Texas, Jay Hill of New Mexico and Carla Wardin of Michigan.

The five national spokespersons will help bridge the information gap between agriculture and the general public during the next year.

“We are passionate about what we do, and we really enjoy being able to raise a family on a farm. Being able to share that

with the consuming public is something we’re really excited about,” said Titus, 31.

Titus has committed to sharing his story at events and with media about growing up on a Douglas County farm, earning an ag education degree from the University of Illinois and working for Cargill Meat Solutions in Wichita, Kan. He raises grain, beef, hogs, sheep and goats with his father-in-law, Dave Conrady, and brother-in-law, Brett, in Logan County.

Titus served as an Illinois Pork Producers Association ambassador, participates in the National Pork Board’s Real Pig Farming social media campaign and serves as a Pork Checkoff Operation Main Street speaker.

He and his wife, Breann,

returned to her family’s farm in 2012.

“A portion of the final selection process was a public vote, and the Illinois ag commodity groups have been exceptional in supporting me and my journey,” said Titus. “We really united and helped get the final push to get me in a position where I can be the next Face of Farming and Ranching, and talk about what we do on our farm.”

Titus becomes the second Illinois farmer to serve in the role. Katie Pratt of Dixon served as one of four inaugural USFRA Faces of Farming and Ranching.

Mike Orso, Illinois Farm Bureau director of news and communications, contributed to this article.

CAFO rules alter calculation of livestock operation size

Page 3 • Monday, November 17, 2014 • FarmWeek

BY KAY SHIPMAN FarmWeek

Illinois farmers learned livestock farming became more complex under new state regulations for Concentrated Animal Feeding Operations (CAFO).

“This is a learning process,” Jim Kaitschuk, executive director of the Illinois Pork Producers Association (IPPA), told farmers last week. “You’re not alone in this.”

IPPA and Illinois Farm Bureau hosted three CAFO informational meetings last week and offer another four this week. About 50 farmers attended the first meeting at the Pike County Farm Bureau, Pittsfield.

Kaitschuk; Lauren Lurkins, IFB director of natural and environmental resources; and Ted Funk, agricultural engineer for IPPA; updated farmers on the new rules enforced by the Illinois Environmental Protection Agency (IEPA).

The updated rules impact all livestock farms, but an exact number that may apply for permits isn’t known.

To start, all livestock facility owners/operators must determine if they need to apply for a National Pollutant Discharge Elimination System (NPDES) permit, Lurkins advised the

Illinois Farm Bureau Director Gary Speckhart, left, of Quincy and Adams County Farm Bureau member Randy Sims of Liberty discuss issues in Pittsfield last week after the first of seven informational meetings about new livestock regulations. Illinois Farm Bureau and the Illinois Pork Producers Association are hosting the meetings. (Photo by Kay Shipman)

farmers in Pittsfield.

That’s easier said than done.

Some farms that raise livestock may be defined as an animal feeding operation (AFO) and others as a small, medium or large CAFO. The actual number of animals — not facility capacity — is one factor used to determine the facility size. Under the formula, species and age of animal, such as a mature dairy cow compared to a heifer, are weighted differently.

An animal feeding operation (AFO) is defined as a lot

or facility where animals are confined and fed for 45 or more days in any 12-month period — and where crops, vegetation, forage or harvest residue “are not sustained in the normal growing season over any portion of the lot or facility.”

Two or more AFOs under common ownership would be considered a single AFO (and the animals would be added together for regulatory purposes) if they are adjacent to each other or if they use “a common area or system for

the disposal of wastes.”

According to Funk, that situation applies to two or more farms that apply livestock waste on the same fields even if those farms are not side by side.

To determine the size of farm category, farmers need to refer to the number tables in the law or view the table posted on {ilfb.org}. Farmers must determine their operation’s size and whether they need to apply for a permit based on their individual operations.

The regulations define livestock farms as large, medium or small based on the number of animals housed. Other factors also influence whether farms are CAFOs, which might need to apply for a permit, or AFOs that don’t need a permit.

Factors influencing that designation include whether livestock waste moves into “waters of the U.S.” through a man-made ditch, flushing system or other similar manmade device.

The regulations now clarify which farms may construct vegetative filters, which are man-made “conveyances” to surface waters, Funk noted.

He advised farmers with “medium” category operations and who have vegetative filters

Four meetings left

Illinois Farm Bureau and the Illinois Pork Producers Association will host four informational meetings on new Concentrated Animal Feeding Operations (CAFO) this week. Information will be presented from 4 to 6 p.m., followed by a meal at 6:30 p.m.

Days and locations include: Monday, Effingham Knights of Columbus Hall, 1501 W. Fayette Ave., Effingham; Tuesday, Knox Agri Center, 180 S. Soangetaha Road, Suite 101, Galesburg; Wednesday, DeKalb County Farm Bureau, 1350 W. Prairie Drive, Sycamore; and Thursday, Evergreen FS auditorium, 402 N. Hershey Road, Bloomington.

to determine if their vegetative filter discharges into a stream.

In addition to four meetings this week, IFB and IPPA will host a webinar at 8 a.m.

Dec. 11. To register, visit {ilfb.org} under the “CAFO rule meetings” at upper right.

Future FarmWeek stories will provide more information about the new CAFO rules.

Pork producers preparing for another round of PEDV

BY DANIEL GRANT FarmWeek

Lessons learned since the introduction of porcine epidemic diarrhea virus (PEDV) to the U.S. in the spring of 2013 could prove invaluable in the months ahead.

Many pork producers remain cautiously optimistic protocols to avoid and contain the virus, enhanced biosecurity measures and new vaccines on the market could reduce outbreaks.

Viruses, such as PEDV, typically become more active in cold weather. Pork producers, therefore, remain on red alert for another possible round of the virus, which can devastate litters of baby pigs.

“This fall will be the test now that we’re getting into cooler temperatures,” Todd Dail, a pork producer from Erie (Whiteside County) and president of the Illinois Pork Producers Association, told FarmWeek. “I haven’t had it, yet, on my farm. But I’m still very concerned.”

Dail, who operates a 1,200 sow, farrow-to-finish operation with his father, Max, believes biosecurity remains the key to avoiding and containing the virus.

“We’ve got a closed system, which I think helps (biosecuri-

ty),” he said. “We grind our own feed, truck in our own ingredients and haul all of our pigs to market.”

Producers who rely on others to haul feed to their farms or transport animals to market should ensure the vehicles used in those operations are cleaned and disinfected between farms.

“I’d encourage producers to upgrade biosecurity as much as they can,” said Howard Hill, a veterinarian and president of the National Pork Producers Council.

“Be aware that transport vehicles are one of the main sources that move (PEDV) around,” he continued.

“There’s also pretty good evidence some PEDV is moved by feed. There’s a lot of effort in the industry to rectify that problem.”

After a peak of new cases and animal losses last winter and spring, outbreaks and losses maintained a steady decline.

In fact, the number of new cases of PEDV tracked via the Swine Monitoring Project declined sharply since June and were at near zero levels through the end of October, according to the CME Group Daily Livestock Report.

“It’s kind of quiet right

Todd Dail, a hog farmer from Erie (Whiteside County) and president of the Illinois Pork Producers Association, cares for his herd. Dail fortunately has not had porcine epidemic diarrhea virus infect his herd to date, but remains concerned the virus could spread again this winter. (Photo by Cyndi Cook)

now,” Hill said last week.

“Although, we did have 20 new cases the middle of (this) month.”

Hill believes the U.S. swine herd this winter possesses some immunity to the virus after it swept through the countryside last winter.

Two new vaccines on the market also help build immunity in swine herds, although

they’re not as effective protecting unexposed animals that later encounter the virus, Hill added.

Meanwhile, in anticipation of flu season, the Pork Checkoff reminds producers, farm personnel, veterinarians and others who have contact with pigs to get a seasonal flu vaccination as soon as possible.

“It’s always wise for pro-

ducers and swine farm workers to reduce the risk of getting sick and bringing influenza to the farm or workplace by getting vaccinated,” said Lisa Becton, director of swine health information and research science and technology for the Pork Checkoff.

The flu season often runs from early October through May.

Ag economist: Don’t sacrifice yield to reduce input costs FarmWeek • Page 4 • Monday, November 17, 2014

BY DANIEL GRANT FarmWeek The prospect of lower farm income in 2014-15 compared to recent years could drive crop farmers to look for ways to cut production costs.

FarmWeekNow.com

Visit FarmWeekNow.com to listen to interviews with speakers from the ABA Ag Bankers Conference.

And that’s a good strategy to deal with tighter margins as long as the cuts don’t reduce production, according to Robert Craven, director of the Center for Farm Financial Management at the University of Minnesota.

Craven last week discussed the potential squeeze on farm

Debt

margins at the 62nd annual National Agricultural Bankers Conference in Omaha, Neb., hosted by the American Bankers Association.

“The single most important factor determining the cost of production is yield,” Craven said. “As you (farmers and farm managers) think about cutting costs, it’s important that you don’t cut yields (in the process).

It will have an impact” on the bottom line.

Craven predicts input costs for 2015 could be flat for seed, flat to lower for fuel and higher for chemicals as farmers rely on more pre-emergence programs to control difficult weeds.

Fertilizer prices are higher than last year, but Craven

of interest rates (interest payments ballooned 65 percent during that span) and a drop in commodity prices (a 16 percent decline those three years), Featherstone noted.

“If those conditions repeated, we’d have a lot of farms in trouble,” he said.

An underlying concern for Featherstone and fellow economists revolves around debt loads for some farmers.

While overall farm debt remains low by historical standards, the portion of farmers who have more than 70 percent debt was higher in 2013 (3.2 percent) than 1979 (1.3 percent).

“Everything (including record crop prices, land values and low interest rates) sort of came together (from 2006 to continued from page 1

Robert Craven, left, director of the Center for Farm Financial Management at the University of Minnesota, discusses farm input costs with Joe Pauley of Council Bluffs, Iowa, during the trade show at the 62nd National Agricultural Bankers Conference in Omaha, Neb. (Photo by Daniel Grant)

believes input costs could be flat.

“Fertilizer (costs) I see as flat,” he said. “It’s not going to be cheaper. I think people will

take a second look at rates and apply less.”

Craven encourages farmers and farm managers to assess all costs to find possible cutbacks.

Barnard and David Kohl, Virginia Tech ag economist, also urge farmers and bankers to stress test their operations to prepare for a period of low crop prices, higher interest rates or both.

The economists believe lower prices could linger in the years ahead, unlike 2009 when farm revenue declined 9.1 percent and expenses increased 4.2 percent followed by a positive readjustment by 2010.

“We’re moving into an environment that will be an educational event,” Kohl said. “Do your shock testing.”

Kohl believes “it’s going to be a game of chicken this winter” as farmers, landlords and ag retailers attempt to adjust inputs and cash rents to account for a strong possibility of lower farm income in 2015.

2013),” said Freddie Barnard, Purdue University ag economist. “So what did we do? We bought stuff.”

Now, some farmers could struggle to make loan or rent payments in the future if crop prices remain low (or decline further) or if operating costs and interest rates increase.

“We need to be scaling back (capital expenditures) with a reduced revenue stream,” Barnard said. “We need to manage risk and lock in rates.”

Barnard recommends farmers consider restructuring loans to lock in current rates.

About 50 percent of farm debt has a fixed rate, while the other half of loans have floating rates, and thus remain subject to interest rate changes, according to Featherstone.

Data

features may or may not be enabled when they make certain choices.

AFBF President Bob Stallman said the principles “provide a measure of needed certainty to farmers regarding the protection of their data.” continued from page 1

Start Planning Now

“These principles are meant to be inclusive, and we hope other farm organizations and ATPs join this collaborative effort in protecting farm-level data as well as educating farmers about this revolutionary technology,” Stallman concluded.

The cost structure on farms differs, so there’s no obvious place to start. Some farmers may not be able to justify paying higher cash rents in coming months or years, while other farmers may invest too much in machinery or seed.

“Our low-cost producers spend less and get higher yields on average,” Craven said. “But there’s not a single item” that separates lowcost from high-cost producers.

Craven recommends, along with attempting to cut costs, farmers should protect working capital, consider refinancing land and benchmark themselves against other farmers to see where improvements can be made on each farm.

“We’ve got a group of farmers who will do just fine with $3.50 corn and a high-cost group of farmers that, even at $4.25, will lose $196 per acre in 2015,” Craven said.

Farms with good working capital and serviceable debt will fair the best under a tighter margin scenario. The high-risk operations are highly leveraged without a lot of working capital, according to the economist.

“A lot of operations have grown fast with a lot of rental ground,” Craven said. “These guys (also known as ‘go-go farmers’) have a lot of risk.”

Farmers looking to cut costs also could trim family living expenses, which have gone up.

But that could be easier said than done.

“We’ve increased family living expenses (from about $65,000 to $85,000). Those dollars compete with what we use for debt repayment,” said Freddie Barnard, Purdue University ag economist.

“Once that genie is out of the bottle, it’s hard to get back.”

Barnard recommends farmers and ag bankers stress test operations to prepare for possible tougher financial times ahead.

Attend a meeting at your convenience ...

Date

Location

City

Time

Contact

November 18 November 18 November 18 November 18 November 24 November 24 November 25 November 25

Farm Credit Kaskaskia Community College Lifelong Learning Center Lifelong Learning Center KC Hall KC Hall Madison County Farm Bureau KC Hall

Mt. Vernon e Centralia Centralia Centralia Carlinville Carlinville Edwardsville Carrollton

12:00 PM 6:30 PM 6:30 PM 6:30 PM 10:00 AM 7:00 PM 1:00 PM 6:00 PM

Chris Bunting, 618-242-4510 Brad Conant, 618-327-3081 Gary Kennedy, 618-292-1664 Stephanie Kraus, 618-664-3100 John Nolan, 217-854-2626 John Nolan, 217-854-2626 Tom Jett, 618-656-5191 Stephanie p Knittel, 217-942-6958 7-942-6958

Additional meetings take place through March. Follow w FarmW FarmWeek e k®, FarmW eek FarmWeekNow.com WeekNow eekN .com your favorite RFD Radio Network® radio or ilfb.org/farmbill to learn more. eekNow

Farmers, food key to Mariano’s successful philosophy

Page 5 • Monday, November 17, 2014 • FarmWeek

BY KAY SHIPMAN FarmWeek

Grocery shopping becomes an experience at Chicago-area Mariano’s, and local farmers play an integral role, a corporate executive said during the fourth annual Local and Regional Food Summit last week in Normal.

“We’re pretty passionate about farmers,” said Steve Jarzombek, produce vice president for Roundy’s Supermarkets Inc., Mariano’s parent company based in Wisconsin.

Illinois Farm Bureau, the Illinois Department of Agriculture and Heartland Community College hosted the event, which included an opportunity for farmers and buyers to meet.

Jarzombek shared his passion by showing a brief onfarm video chat with an Illinois specialty grower, dubbed “One Minute with Steve.” It’s

Steve Jarzombek, vice president of produce at Roundy’s Supermarkets Inc., explains his company’s philosophy and marketing efforts to promote farmers and locally grown foods at their retail grocery stores in three states. Under the Mariano’s name in the Chicago area, the company focused on local food and the farmers that produced it in storewide campaigns and online. (Photo by Ken Kashian)

available on the company’s website and YouTube, he noted.

Jason Foscolo, far left, chief counsel with the national Farmer Veteran Coalition, chats with, left to right, Ben Shaffar, Kentucky Department of Agriculture business development director; Cynthia Haskins, Illinois Farm Bureau business development and compliance manager; and Kendra Schilling, Illinois Department of Agriculture marketing and promotions acting manager. (Photo by Ken Kashian)

Illinois leads way to expand farmer veteran marketing, branding campaign

BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau and the Illinois Department of Agriculture (IDOA) adopted a farmer veteran marketing program, helping with its expansion nationwide.

The Homegrown by Heroes Illinois marketing initiative launched in the summer and was based on a Homegrown by Heroes marketing program created by the Kentucky Department of Agriculture.

“Illinois set up a national model for (the program’s) expansion,” said Ben Shaffar, business development director with the Kentucky Department of Agriculture. “I’m here to applaud the Illinois Department of Agriculture and Illinois Farm Bureau for formally adopting Homegrown by Heroes.”

Veterans of any era and active military personnel may apply for Homegrown by Heroes certification. Certified Illinois veterans may use a special Illinois Homegrown by

Heroes logo on product labels and signs to promote and market their products.

Kentucky started its Homegrown by Heroes program in 2013, and has seen many of the participating veterans branch into value-added ventures, according to Shaffar.

In a Kentucky survey of consumers, 70 percent of respondents said they would choose a veteran-labeled product over a similar locally grown product. Respondents also said they would be willing to pay between 5 and 20 percent more for the veteran’s product.

Additional states are following Illinois’ lead, according to Jason Fascolo, chief counsel with the national Farmer Veteran Coalition.

“In the next year, the Farmer Veteran Coalition wants to roll out more state partnerships,” Fascolo said.

“Illinois has an ambitious program to promote Illinois products. Our ambition is to make this a nationally recognized mark.”

Called America’s mostwanted supermarket by a Canadian magazine, Mariano’s

focuses on selection with more than 800 items, customer service and experiences as it continues opening stores.

Store features include cafes, open grills and a sushi bar.

Shoppers regularly hear pianists and even jazz quartets on weekends.

“We recognize consumers are passionate about local food,” Jarzombek said.

Thus, the company focused on local food while highlighting the farmers in promotions and campaigns, especially last summer.

Mariano’s launched a locally grown contest for two months and featured Illinois and Wisconsin farmers who are store suppliers.

“We came up with a campaign, ‘Love Your Local Farmer,’ ” he added. Farmers were featured not only in stores but also in radio

commercials and company newspapers.

“People are emotional about farmers and want you to be successful and to buy your food,” Jarzombek said.

During his presentation, Jarzombek highlighted several Illinois farms across the state which sell produce to Mariano’s. Accompanied by two buyers and a marketing representative, Jarzombek noted his company seeks to add more local farmers to their suppliers.

Steve Markovich, who buys most of Mariano’s vegetables, told FarmWeek he hoped to visit with potential farmer suppliers during the summit. “The farmer is the celebrity,” Markovich said.

His words of advice for potential Mariano’s farm suppliers? “No farm is too small or too large,” he said.

EXTENSION EXPERTISE, EFFORTS

George Czapar, University of Illinois associate dean and director of Extension and outreach, right, talks with Rick Weinzierl, left, U of I Extension entomology specialist, and Steve Ayers, Extension educator in local foods and small farms, during the Local and Regional Food Summit last week at Heartland Community College, Normal. (Photo by Kay Shipman)

FarmWeek • Page 6 • Monday, November 17, 2014

Editor’s Note: This marks the final 2014 CropWatcher report from 28 faithful Illinois Farm Bureau members. It also completes 22 years of FarmWeek CropWatcher accounts.

Four original CropWatchers continue to supply weekly reports: Rick Corners, Leroy Getz, Kevin Raber and Ken Taake.

Bernie Walsh, Durand, Winnebago County: The 2014 harvest is finally winding down here in northern Illinois. After another good week of harvest, there is only about 15 percent of the corn left out in the fields. We need several good days to finish our corn harvest. I hope it doesn’t snow too much this weekend. This year will go down in the books as one of our best as far as production goes, but the low commodity prices have cut into our income. I have enjoyed writing this report again this year, and I want to thank all the readers that have commented on how much they have enjoyed reading about our crop progress. Have a safe and happy winter.

Pete Tekampe, Grayslake, Lake County: As another CropWatcher year ends, Lake County still has about 30 percent of its corn to pick. Most moisture is in the teens, but some later-planted corn is still in the low 20s. Yields are still running about average. With the early cold snap, not much tillage work will be done. Hopefully, we will get a warm snap next week that is predicted.

Hope everyone has a happy holiday season, and we will see you in Chicago.

Leroy Getz, Savanna, Carroll County: We end this reporting season with snow on the ground from a brief squall that came through Thursday afternoon. The year has been cooler than normal with wet conditions early, then a dry harvest. Crop yields are a record on corn and average on soybeans. With prices trending down, profit margins are low. The bright spot was in the record livestock and dairy prices. Next year will be more challenging with high inputs and lower returns, so the profits may be small. Have an enjoyable winter.

Ryan Frieders, Waterman, DeKalb County: Another season of CropWatchers has come to an end. I watched a neighbor complete his fall tillage across the field as I wrote this report. Most crops are harvested and fieldwork is done in our area. It was very cold with snow showers last week. We are already making plans for next spring. This season, we were blessed with many gifts, and hopefully, next year will be even better.

Larry Hummel, Dixon, Lee County: Combines were still rolling as I wrote my last report of the 2014 season. Last week was full of frustration as harvest was slowed down with major breakdowns at our dump pit and our combine. What were some of the highlights and low points of the 2014 season?

Highlights – average to above average year, adequate moisture for most of the season, and just barely enough heat during the year to mature the crop. Low points – corn prices below the cost of production, high moisture corn the first half of harvest, and of course, the loss of my father on Easter day.

Ken Reinhardt, Seaton, Mercer County: The temperature was 16 degrees Friday morning, and an inch or so of snow was predicted for Saturday. I did tillage until early Friday morning, but it may be a bit hard now, so it is appropriate that this is the last report of the season. Of course, you can always keep up via Twitter or Facebook. There is a fair amount of corn out in the fields yet, and the pile of corn grows daily in Aledo. Corn and probably soybean yields for the county will be the best ever.

Ron Moore, Roseville, Warren County: We have finished with harvest. As soon as we were done, we started cleaning out the cattle building pits. Not the most pleasant job on the farm, but one that will save a few thousand dollars in fertilizer costs. Hopefully, we will be done before the ground freezes too hard.

Yields on both corn and soybeans were very good in this area. Corn was quite a bit higher than average and the beans were slightly above average. There are still a few acres of corn yet to harvest in the area, but should be finished by next week. The cold weather will stop lots of tillage until it warms up. It has been my pleasure to report from western Illinois again this year. Happy Thanksgiving and Merry Christmas.

Jacob Streitmatter, Princeville, Peoria County: Harvest is complete for me and many around the area. It turned out to be a good harvest with very few breakdowns and decent yields. My soybean yields were very good and corn yielded a good average crop overall. Now, on to tillage and enjoying the freezing cold weather.

Tim Green, Wyoming, Stark County: There is still a little bit of corn and a few beans still to go in Stark County, but not very much.

Our crop was very good, but I don’t think it was as good as a lot of people thought. Everyone had a few good fields and a few average to a little below fields. A little disease might have taken the top end off, but in general, the bean yields were pretty decent. Just wish we could get the price to pop now. A lot of fall anhydrous has been applied, and a little tillage work has been done. Hope everyone had a safe fall. I enjoyed being a CropWatcher.

Mark Kerber, Chatsworth, Livingston County: It was enjoyable to harvest and haul a large crop for a change. Fighting the mud was not fun, but it could have been worse, such as in 1972, 1977 and 2009. Now that harvest is complete, tillage and NH3 is taking place as it dried up some. Frozen ground will hamper this operation. Winter is coming early this year as a polar vortex is in place. Do you remember that term from last year? Surprisingly, markets are looking stronger for this time of year with a record crop harvested. Illinois was the leader in higher yields. Have an enjoyable winter.

Ron Haase, Gilman, Iroquois County: Although most are done, there are still acres of corn and soybeans out in some fields.

We finished our soybean harvest Monday (Nov. 10) before the rain came. Our corn harvest was slowed by the .2 of an inch of rain on Tuesday and then by a breakdown yesterday. We need another six or seven days to finish our corn. So far, every field of corn that we have harvested, and all of our soybean fields, set a new record yield for each particular field. Our corn yields are 20 percent higher than they were in 2013.

The lower prices temper our excitement about the high yields in 2014. Tillage and fertilizer applications continue before the ground freezes deeper. We are still trying to decide how to split our acres between corn and soybean in 2015. Local prices for Nov. 13 closed at nearby corn, $3.48; new-crop corn in 2015, $3.79; nearby soybeans, $10.31; new-crop soybeans in 2015, $9.85.

Brian Schaumburg, Chenoa, McLean County: A growing season that saw record yields and near perfect weather comes to a close. Few fields remain, and the colder than usual temperatures take some getting used to. Planning for 2015 requires sharper pencils as producers deal with high input costs and lower revenue potential. Still, we have a lot to be thankful for, especially at our house where we will welcome our first grandchild early next year. In the meantime, I think I hear the call of squeaking tennis shoes and bouncing basketballs from local gyms.

Corn, $3.55, Jan., $3.69, fall ’15, $3.94; soybeans, $10.21, fall ’15, $9.92; wheat, $5.00.

Wilfred Dittmer, Quincy, Adams County: My, it seems like the year just got a good start and here we are about to sign off for 2014. One thing for sure, it was definitely different. My gauge collected 35.6 inches of rainfall from April through October, and the yields definitely were outstanding. Most corn yields were the best we have ever raised and soybeans, maybe in the 50s, due to sudden death syndrome invading many fields. There is still some corn standing, while others are busy with NH3 and sowing wheat.

I think we should all be grateful for such a year and a good Thanksgiving. Enjoy your health today because tomorrow may not get here.

Steve Ayers, Champaign, Champaign County: A few raindrops amounting to .08 of an inch fell Tuesday before the Big Chill began. Golden piles of corn dot the area, but in DeLand in Piatt County, there are big white silage bags on both sides of the street. They spray painted a plea to squirrels to find something else to eat. What a growing season that resulted in bountiful yields!

Happy trails to you until we meet again!

Carrie Winkelmann, Tallula, Menard County: We finished harvest the middle of last week and have been spraying fast and furiously until the cold weather drove us out of the field Wednesday. It snowed Thursday. We are looking toward getting some anhydrous on if we can get the weather to cooperate. Just wishing for some warmer weather to finish up. A lot of anhydrous has gone on already in the area. Expecting a long winter of hauling grain!

Tom Ritter, Blue Mound, Macon County: The season, at least for CropWatchers, has ended.

Still a little work being done on area farms. Harvest is in the last percent or two on corn and soybeans and will wrap up very quickly. A lot of tillage has been done. Anhydrous has also been applied, but pretty frustrating with the cooler temperatures and the material not wanting to flow through the system as well as some issues with trying to get it to seal, and some wet and mucky ground. Overall, it has been a very good season. As most years, a lot of challenges, but record yields, particularly on corn and way above-average yields on beans.

Farmers are very pleased. Now, if the markets can continue to rally some more, maybe this year will be equal to some of the previous years. I wish everyone a happy winter, and a happy Thanksgiving and a happy Christmas.

Todd Easton, Charleston, Coles County: Another interesting CropWatcher season has come to an end along with this challenging, yet rewarding harvest season.

The rewards, of course, were the record-shattering yields found in virtually every field this year. Corn yields averaged well into the 200s on many fields. Soybean fields also had a very good year with some of the earlier-planted fields yielding well into the 70s and even into the 80s. This is definitely a benchmark year where many fields and farms set new records that we can strive to break again in the future. With virtually all fields clear of crops at this point, tillage operations seem to be more than half done, and fertilizer, lime and anhydrous applications have a good start. The bad news is the early winter weather that set in last week does not fit in well with our late harvest. During the last couple of days, subfreezing temperatures were gradually making the fields unworkable holding off most field operations. We would have liked to try to get done and normally could before Thanksgiving. Not a surprising way to end a fall that seemed to be one narrow window to work after another. Like Grandpa said, “we could still get another shot to finish things up.”

So, until we fill these pages again, I wish you all a good holiday/off-season, and a new year full of opportunity ahead.

Jimmy Ayers, New City, Sangamon County: The weather certainly changed to more of a winter-type environment last week.

The prediction was for 1 to 2 inches of snow Saturday (Nov. 15).

Harvest is winding down for a lot of farmers. There is still a little bit of corn out, but the majority has been taken care of. Yields around our place ranged from 165 to 297 bushels per acre. Overall, I think it was less than what was expected prior to harvest. The good fields were good and some of the wetter stuff wasn’t able to perform as well as expected. No-till and strip-till seemed to hold the machines up and wasn’t quite as muddy this fall. We were anywhere from 50 to 76 bushels per acre on soybeans. I guess, production-wise this year was great. Marketing was a different story.

Hope you had some sold in advance. It may be a little more difficult this winter to get that product marketed at a profitable price. I’m sure everyone is working on fertilizer for next year, and wondering what parts of their operation they can alter to get a different outcome. Hopefully, you will have a great winter and get your plans in place for a terrific 2015.

It has certainly been a privilege. I hope everyone has a great holiday season, and enjoys the winter and a little time off.

Page 7 • Monday, November 17, 2014 • FarmWeek Doug Uphoff, Shelbyville, Shelby County: Rainfall for the year was as follows: March, 1.3 inches; April, 5.5; May, 1.75; June, 5.6; July, 5.6; Aug., 3; Sept., 4.55; Oct., 5.15; Nov., .7 of an inch. Total, 33.15 inches. So, rain and cool temps make grain. Even beans did well in the cool weather, which I never would have imagined. We should finish up our 60 acres of corn by the time you read this. Waiting on frozen ground for four different fields. Have a Happy Thanksgiving, Christmas and New Year, and be safe out there. Still fieldwork and NH3 to get on.

David Schaal, St. Peter, Fayette County: To put the 2014 growing season in perspective, we got in the fields in a timely manner in the spring.

Everything around here was put in the ground in good time. We then experienced a cool summer, and along with that, we never hurt too badly for rainfall other than a short dry spell in July. The cool weather prolonged maturity of the crops, and harvest started later than anticipated for when it went into the ground.

During harvest, we encountered seven to eight days of wet, rainy weather. Local elevators have kept up really well this harvest.

Lots of corn lying on the ground. Yields were better than farmers anticipated for corn and soybeans. Not a lot of wheat sowed in this neck of the woods. Everyone have a happy and safe holiday season, and the rest of 2014. See you all in 2015.

Dan Meinhart, Montrose, Jasper County: The week started out with mild temperatures and dry weather. The end of the week turned cold with light snow flurries. Soybean harvest is pretty well wrapped up. Corn will not be far behind if the elevators can get enough rail cars so they can stay open. Several elevators have piles of corn on the ground. The yields have been very good for corn and double-crop beans. Some wheat has been planted, but very little has emerged. Some dry fertilizer and lime has been applied, and some fall tillage has been done. The cold temperatures are expected to last for another week.

Kevin Raber, Browns, Wabash County: Harvest is quickly coming to a close. It’s hard to find a corn or soybean field locally. Many fields have had fall tillage done. The wheat that has been sown has been slow to establish a quality stand. As I close reporting for 2014, we have had our share of highs and lows, but as always the Lord has blessed us with a bountiful harvest! Best wishes to all. Be safe and healthy until next season!

Rick Corners, Centralia, Jefferson County: Well, another “I’ve never seen it before” — the ground froze in the second week of November in southern Illinois, and maybe I just don’t remember like I used to, but I’m sure I’ve never seen a wet August like we had this year. Standing crops are getting scarce, although there is still a lot to go. Don’t think Thanksgiving will catch it, but I believe Christmas will. By golly, I think we went last week with only a sprinkle of rain, and everybody has been hitting hard. Hope the snow that was predicted for the weekend missed everyone. Really good year all and all. Hard to believe what came off some of the fields this year where two years ago there was nothing. Mother Nature still calls the shots. Thank you for reading my ramblings another year, and I’ll see you down the trail.

Randy Anderson, Galatia, Saline County: As we wrap up the harvest, it feels more like the middle of January. The low Friday morning was in the upper teens — should be mid30s. But, just think. In 150 days, we will be thinking about trying to start planting the 2015 crop. I would like to say thank you to all the readers and seeing the people and telling me thanks for reporting. Have a Happy Thanksgiving.

Ken Taake, Ullin, Pulaski County: We are down to about 65 acres of soybeans to finish harvest this year. I hope by the time you read this our harvest is finished. I think most farmers in the area are either finished or close to it. We haven’t managed to start any fall fertilizer or lime yet. There is still a lot to do before winter sets in, but with lows in the teens, it has sure felt like winter. Please take time and be careful.

Groups urge Corps not to restrict river traffic

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

DEANA STROISCH FarmWeek

Agriculture groups continue to monitor barge traffic along the Mississippi River as maintenance work wraps up this week near Fair Landing, Ark. The shutdown drew swift action from groups, including t h e I l l i n o i s Fa r m B u r e a u , National Corn Growers Association and the Waterways Council.

IFB immediately contacted several congressional offices.

“Anytime there’s a disrupt i o n o f b a r g e t r a f f i c, w e know from past experience that prices immediately drop,” said Adam Nielsen,

I F B ’s n a t i o n a l l e g i s l a t i ve director. “Last Friday, IFB contacted several cong res-

NCGA President Chip Bowling urged the Ar my Corps of Engineers to delay

‘Anytime there’s a disruption of barge traffic, we know from past experience that prices immediately drop.’

— Adam Nielsen sional offices, which in turn made calls to the White House and Corps. We appreciate their quick response to encourage the Corps to find a way to get barges through the project area.”

Listen.

IFB national legislative director

the mat-laying work.

“This closure of the Miss i s s i p p i R i ve r, w h i c h w a s done with little notice to shippers, comes at a critical time for the grain industry,” Bowling wrote the Corps. “We fear

Click.

the closure will result in significant delays of grain shipments with potential to create backups as long as 75 miles. A delay of this magnitude will have a significant financial impact on far mers, who already face prices below the cost of production.”

Crews are repairing banks damag ed during the Great Flood of 2011, which the Cor ps says can’t be perf o r m e d d u r i n g h i g h r i ve r stages, which typically occur during the rest of the year.

Other planned work in the area was delayed until Dec. 30. “ We f u l l y r e a l i z e h o w important it is to keep com-

merce moving on the Mississippi River during har vest s e a s o n ,” s a i d M a j . G e n .

Michael Wehr, commander of the Mississippi Valley Division. “We are in constant dialogue with industry and the Coast Guard to minimize the impact to navigation, while accomplishing critical flood control and flood risk reduction work before the next high water hits the region.”

Southbound commerce could move on the river from dusk to dawn and limited size tows can move northbound through the restricted portion of the river during daylight hours. Fewer restrictions may be in place this week.

Read.

The most people, on the ground, in Illinois, covering Illinois agriculture for you.

Get to know Dan Grant

FarmWeek Senior Commodities Editor & FarmWeekNow.com contributor ®

Dan provides you with timely production and economic data to help bolster your bottom line. He puts a face on the industry, and makes a point to seek out Illinois farmers when on his beat so that you help tell the story. Dan was an early adopter of social media and readily but carefully taps into that rapidly evolving information resource too. So, follow Dan on Twitter, @FarmWeekNow.

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Ag economist: World appetite for meat expected to grow FarmWeek • Page 8 • Monday, November 17, 2014

BY DANIEL GRANT FarmWeek

Consumers around the world haven’t lost their appetite for meat despite record hog and cattle prices this year.

And that trend should continue into next year and beyond, according to Lowell Catlett, Dean of the College of Agricultural, Consumer and Environmental Sciences at New Mexico State University.

Catlett was the keynote speaker last week at the 62nd annual National Agricultural Bankers Conference in Omaha, Neb. “We’ve got a world that’s got more money now than it’s ever had,” Catlett told FarmWeek.

“And they want to increase meat protein production. I think we’ll have to double meat output in the next 25 years.”

The size of the middle class continues to grow in countries in Asia, Latin America and other parts of the world.

And one of the first lifestyle changes people make when they have more money centers on an improved diet.

“Money changes people,” said Catlett, who noted beef production in India doubled the past five years. “The first

thing they do is improve their diets. And there are no signs of world wealth going away.”

free products, even organic vodka, we can produce it.”

Which farmers are in the

key to expanding demand for grain and oilseeds.

“The animal industry is the

‘I think we’ll have to double meat output in the next 25 years.’

— Lowell Catlett New Mexico State University ag economist

Meat consumption leveled or even slowed in some developed countries, such as the U.S., in recent years. But there are greater opportunities to create value via market segmentation.

Catlett noted that his generation, about 82 million baby boomers, will initiate the largest intergenerational transfer of wealth in history. And many consumers in the younger generations prefer and are willing to pay for differentiated food products, ranging from cage-free eggs and organic milk to gluten-free cereal.

“We’ve got, now in ag, the most differentiated, segmented marketplace ever,” Catlett said.

“So, we’ve got a lot of opportunities for a lot of products,” he continued. “If you want organic or gluten-

best position to take advantage of growing and emerging markets? Catlett believes it’s those in North America.

“Canada and the U.S. are strategically positioned to do that (increase livestock production),” the economist said.

“And it’s going to be done with intensive animal operations, which need corn and soybeans.”

Canada and the U.S. possess some of the best livestock genetics, feed production capabilities and infrastructure necessary to boost meat output, Catlett noted.

Dwain Ford, a farmer from Kinmundy who recently was reappointed to serve another three-year term on the United Soybean Board, believes the livestock industry also will be

A gift that fills more than a stocking.

No. 1 customer for U.S. soy and soy products,” Ford told FarmWeek. “We need to do

everything we can to build the livestock industry here in the U.S.” The U.S. this year could export about 15.783 billion pounds of its beef, pork, chicken and poultry production, the CME Group Daily Livestock Report noted. If realized, the U.S. this year could achieve a trade surplus of about 11.84 billion pounds of meat protein.

U.S. pork exports this year are up 1.5 percent and could increase 3.6 percent next year, USDA projected.

NPPC leader: There’s still time to fix COOL, maintain trade

A legislative fix to the flawed mandatory country of origin labeling (COOL) law likely won’t be a post-election priority in Congress.

But time remains to address the issue before Canada and Mexico could unleash retaliatory tariffs on a number of U.S. products, ranging from meat and numerous other ag products to furniture and manufactured goods.

The World Trade Organization (WTO) last month found the COOL rule violates U.S. trade obligations with its top two trading partners, Canada and Mexico.

“It may get appealed one more time,” Howard Hill, president of the National Pork Producers Council, told FarmWeek. “We have to wait until the new Congress is in. It may not be a priority (of lawmakers or the administration).”

A U.S. appeal or WTO’s final ruling likely will push the possible implementation of retaliatory tariffs into next year.

In the meantime, a COOL Reform Coalition made up of 109 stakeholders, including NPPC, the American Soybean Association, National Howard Hill Cattlemen’s Beef Association and National Corn Growers Association, urges USDA to rescind elements of COOL determined by WTO to be noncompliant with international trade obligations.

The COOL Reform Coalition recently sent a letter to members of Congress asking them to direct USDA to rescind critical elements of COOL. “It would be intolerable for the United States to maintain, even briefly, a rule that has been deemed noncompliant by the WTO,” the Coalition stated in its letter to Congress.

Otherwise, retaliatory tariffs on U.S. meat products could devastate the U.S. livestock industry at a time when profitability could promote expansion.

“Retaliation by Canada and Mexico could be pretty severe on the (U.S.) livestock industry,” Hill said. “Canada is our top trading partner (overall) and, for U.S. pork, Mexico is the No. 1 importer by volume.”

COOL requires meat to be labeled with the country where the animal was born, raised and slaughtered. But the WTO in separate rulings in 2012 and last month determined the U.S. rule discriminates against cattle and pigs from its North American neighbors.

COOL originally was part of the 2002 farm bill. NPPC worked for more flexibility in the labeling scheme when lawmakers included it in the 2008 farm bill as well.

“We’re not opposed to labeling,” Hill said. “We just want something that makes sense and is not burdensome to producers or packers.” — Daniel Grant

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CME Group’s educational children’s app, Risk Ranch, has been awarded the Best Children’s App Award from BestMobileAppAwards.com.

The single-player game engages children with real-life content, challenging them to take on the role of a modern farmer and bring a steer to market. The game teaches youth the importance of agricultural economics and risk management.

Risk Ranch further helps children look at agriculture as a business, whether they aspire to be a farmer in the future or simply have an interest in learning where their food comes from.

The game can be accessed at {cmegroup.com/educa tion/4-h-risk-ranch.html}.

CME Group exchanges offer the widest range of global benchmark products across all major asset classes.

U.S. ag exports set record; pace could ease in 2015

Page 9 • Monday, November 17, 2014 • FarmWeek

BY DANIEL GRANT FarmWeek

The recent downturn in crop prices could be more severe this year if not for strong demand, particularly outside the U.S. USDA this month announced U.S. ag exports for the 2014 fiscal year reached $152.5 billion, smashing last year’s record of $141 billion.

“Agricultural exports have climbed 41 percent in value over the past five years,” said

Ag Secretary Tom Vilsack.

“U.S. agricultural exports have increased in volume as well as monetary value, which demonstrate an increasing global appetite for high quality, Tom Vilsack Americangrown products.”

Livestock and soybean sales

led the charge as U.S. exports of livestock increased $1.2 billion, while soybean exports climbed $1 billion in the most recent fiscal year. Grain and feed exports increased $200 million.

Much of the growth in U.S. ag exports occurred in Brazil, China, India, Mexico, Russia, South Africa and South Korea, according to David Kohl, ag economist/professor emeritus at Virginia Tech.

“They were the engines behind the growth on the

Farm bill: Your questions answered It’s decision time.

Farmers can now choose between Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs available through the 2014 farm bill.

The ARC/PLC enrollment window opened Monday and goes through at least March 2015.

Landowners have until Feb. 27 to decide whether to reallocate base acreage or update payment yields.

In addition to hosting informational meetings across the state, Illinois Farm Bureau’s Doug Yoder, senior director of affiliate and risk management, will answer FarmWeek reader questions about the decisions farmers face.

This week’s question: Q: Do I have to make the same ARC/PLC election on each of my farms?

A: No. The ARC/PLC election is a farm by farm, crop by crop decision. For example, you

may have ARC-County elected on corn on a particular Farm Service Agency (FSA) farm, and PLC elected for soybeans on that same farm, or vice versa. As another example, you can choose ARC-County on some FSA farms and PLC on others.

The exception: ARC-Individual (ARC-IC). If ARC-IC is chosen, then all crops on all farms that have chosen ARC-IC within the state will be combined into one benchmark revenue and guarantee. You may still have some FSA farms in ARC-IC and others in PLC and/or ARCCounty. Only those farms enrolled in ARC-IC will be combined into one benchmark revenue and guarantee.

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.

demand side,” Kohl told FarmWeek at the National Agricultural Bankers Conference in Omaha, Neb. “(From 2000 to 2012), they accounted for 53 percent of the growth of the world David Kohl economy.”

The overall growth in those economies has slowed for possibly a one- to three-year cycle, Kohl said. He, therefore, believes U.S. ag exports in 2015 could slide from the 2014 level.

Ag exports also could be affected by a strengthening dollar.

“Strength of the dollar hurts our exports (by raising commodity prices for foreign buyers),” Kohl said.

Kohl believes the value of the dollar could strengthen, or at least remain above previous levels, due to economic issues around the world and domestic fiscal policy.

“I think we’ll be in an environment of a strong dollar,” he said. “When times are rocky around the world, people invest back in the dollar. And money is flooding into the U.S.” Kohl believes that as the U.S. economy on the East and West Coasts improves, the Federal Reserve might consider raising interest rates.

“I don’t see a spike up,” he said. “But 1 percent, or 100 basis points, on operating dollars can really impact ag margins.”

Kohl recommends farmers and ag bankers/lenders shock test their current operations to prepare for a possible interest rate bump.

Farmers may register for certified livestock training

FarmWeek • Page 10 • Monday, November 17, 2014

University of Illinois Extension will offer several Livestock Manager Certification workshops. Farmers are encouraged to preregister at least two weeks prior to ensure a seat for the session that fits their schedule.

Advance registration also is encouraged to allow participants to receive a manual in advance, which is important for those planning to take a written Illinois Department of Agriculture (IDOA) test to get their manure management certification.

The state Livestock Management Facilities Act (LMFA) requires farmers with operations designed for more than 300 animal units to have manure management certification and to renew that certification every three years.

Farmers with more than 300 animal

units must attend an approved training session or pass a written IDOA test.

Farmers with more than 1,000 animal units must attend an approved training session and pass a test.

U of I Extension also offers a free series of five quizzes on the Internet.

Passing all five quizzes will meet the state requirement of attending a certified livestock workshop. An email address is required for this option. The quizzes do not take the place of the IDOA exam for farmers with more than 1,000 animal units. To register for the online quiz series, contact the U of I’s Laura Pepple at 217-244-0083.

The training manual is the national Livestock and Poultry Environmental Stewardship Curriculum. Participants do not need a new manual if they have

a 2003 or newer version.

All workshops begin at 8:30 a.m. and will take 3 1/2 hours with the IDOA exam being administered afterward.

The first workshop will be Dec. 18 in the Evergreen FS Auditorium, 402 N. Hershey Road, Bloomington.

The January workshops, dates, and locations include: Jan. 13, Effingham County Extension Office, Effingham; Jan. 14, Jasper County Extension Office, Newton; Jan. 28, Clinton County Extension Office, Breese; and Jan. 29, St. Paul’s United Church of Christ, Nashville.

The February workshop dates and locations include: Feb. 3, Illinois Pork Expo, Civic Center, Peoria; Feb. 24, DeKalb County Farm Bureau, Sycamore; Feb. 25, Knox County Farm

Bureau, Galesburg; and Feb. 26, Stephenson County Farm Bureau, Freeport.

The final workshop will be March 11 in the IDOA building, Illinois State Fairgrounds, Springfield.

To register for a workshop, visit {livestocktraining.com/register} or call the U of I’s College of Agriculture, Consumer and Environmental Sciences marketing and distribution at 800-3456087 and pay by credit card.

Registration costs $30 for the first person from an operation and $20 for each additional participant from an operation.

For more information, contact Laura Pepple, U of I Extension livestock specialist, at 217-244-0083 or email lpepple 2@illinois.edu.

Central Illinois cover crop field days planned U of I Extension plans five The Illinois Council on Best ManageStreet, Kewanee. farm economics meetings ment Practices (CBMP) recently Program topics will include: cover crop announced two cover crop field days in central Illinois.

A program will be from 1 to 3 p.m.

Nov. 18 at Lincoln Land Community College, Springfield.

A cover crop demonstration field tour will be 9 to 11 a.m. Nov. 20 on the Dean and Joline Oswald farm, 7104 East 2480

benefits, cover crop specie selection, aerial applications, funding options and extending grazing seasons with cover crops.

For more information, visit {illinois cbmp.org} or contact CBMP’s Caroline Wade at 309-231-7440 or cwade@illinois cbmp.org.

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Price and income volatility. Farm program sign-up. Longterm grain price prospects. Those topics and more will the subjects of five University of Illinois Extension Farm Economics Summit meetings in December beginning at 7:45 a.m. and concluding at 1:10 p.m.

Speakers from the U of I farmdoc team will explore farm profitability outlook and management challenges from several perspectives, including the 2015 outlook for prices, farm income prospects, grain price prospects and the new farm programs.

Locations and dates include: • Dec. 15, Faranda’s Banquet Center, DeKalb • Dec. 16, Peoria Civic Center • Dec. 17, Crowne Plaza, Springfield • Dec. 18, Holiday Inn, Mount Vernon • Dec. 19, iHotel and Conference Center, Champaign Lunch will be included at each meeting. Registration costs $65 by Dec. 8. Registration at the door costs $75 as space permits. To register, visit {farmdoc.illinois.edu/IFES/2014/}.

For all conference registration questions, contact Nancy Simpson at 217-244-9687 or email nsimp1@illinois.edu.

Illinois schools using grants for science, math, ag classes

Page 11 • Monday, November 17, 2014 • FarmWeek

Nominated by local farmers, several rural Illinois public school districts competed and received grants this fall from America’s Farmers Grow Rural Education, sponsored by the Monsanto Fund. The program supports innovative approaches to teaching math and science to kindergarten through high school students.

A total of 14 Illinois districts received $170,000 through the program.

One of the winning schools, Columbia CUSD 4, plans to use a $10,000 grant to expand incorporation of math and science in its greenhouse and agriculture education program.

More than 1,000 middle school and high school students will use new equipment, including a mini fish farm and humidity tent in horticulture, plant sci-

ence and animal science classes.

“An essential component of ag education is learning by doing, and having additional equipment available for students will greatly benefit all of the current students enrolled in ag education, as well as students in the future,” said Beth Horner, assistant superintendent.

Another winning district, Dwight Public Schools, intends to spend $10,000 for an ambient weather station and other technology that will provide handson learning activities in several Dwight Township High School ag, science, and career and technical classes.

“The weather system we have chosen will provide our teachers with innovative technology that will provide several hands-on experiences for our students,” said Dan Keiser, principal. “The

Farm Bureaus donate $50,000 for farm exhibit

goal is for students to eventually create their own experiments as they learn more about what the weather station has to offer.”

In the spring, local farmers nominated districts for a chance to apply for a grant. School administrators and educators then designed a science-based project for the grant application.

Once all of the school applications were submitted, a panel of math and science teachers reviewed the applications and selected the finalists. An advisory council of farmer leaders selected the winning applications from a pool of finalists.

Grow Rural Education encourages farmers to nominate their local public school district, which may compete for up to $25,000. For information, visit {GrowRuralEducation. com}.

Monsanto offers scholarships

High school seniors and college students can apply for America’s Farmers Grow Ag Leaders scholarships. Sponsored by the Monsanto Fund, the program provides $1,500 college scholarships to students pursuing a degree related to agriculture.

The program began in response to farmer requests to keep rural youth involved in agriculture. Each applicant must obtain endorsements from at least three local farmers.

The National FFA Organization administers the scholarships, but FFA membership is not required to apply. Students have until Feb. 1 to complete an application at {FFA.org/scholarships}.

Farmers can further help their local communities by participating in Monsanto’s America’s Farmers Grow Communities program for volunteer fire departments.

Earlier this year, 10 volunteer fire departments in Illinois each received a $2,500 donation to purchase equipment.

Farmers have until Nov. 30 to enroll in the program and secure donations for their local volunteer fire departments.

Visit {GrowCommunities.com} or call 877-267-3332.

BY DEANA STROISCH FarmWeek

Springfield’s planned children’s museum will include a “Farm to Market” exhibit thanks to a $50,000 donation from the Illinois Farm Bureau and 17 county Farm Bureaus.

The agricultural exhibit at the Kidzeum of Health and Science will feature an interactive corn maze and combine.

Visitors FarmWeekNow.com can learn Go to FarmWeekNow.com for how GPS more information about the technology Kidzeum project in Springfield. helps farmers operate a combine and monitor crop growth. The exhibit also will teach visitors how to milk a cow and take the bottled milk to market. Various farm safety practices also will be featured.

“The Central Illinois Regional Ad Group is very excited to invest in this latest museum project. The combine exhibit is going to introduce thousands of school children to agriculture in an up close and personal way,” said Sabrina Burkiewicz, IFB’s promotion manager.

“Many of our regional ad groups have sponsored museum projects across the state because it’s an excellent way to introduce people to farming and agriculture, and help them understand that it’s the farm families of Illinois who help grow the food they eat every day.”

The Central Illinois Regional Advertising Group includes 17 county Farm Bureaus: Cass-Morgan, Christian, Coles, Cumberland, DeWitt, Douglas, Edgar, Effingham, Ford-Iroquois, Logan, Livingston, Menard, Macon, Moultrie, Piatt, Sangamon and Shelby.

Fundraising continues on the Kidzeum project, a 25,000-square-foot children’s museum planned in downtown Springfield. To date, Kidzeum has raised about $5.3 million of its $6.8 million goal.

Organizers hope to open the museum next year.

This program is overflowing with the resources you need to grow your business and your profits.

January 7 Pre-Conference Workshops 1) 2) 3) 4)

Pollination, Pollinators, and Specialty Crop Production High Tunnel and Greenhouse Production Wholesale Marketing from the Farmers and Buyers Perspective Underground Vegetable Treasures: Roots and Tubers

January 8 - 9 Conference Tracks © Fruit © Vegetables © Herbs © Agritourism/Marketing © Organic Production © Business Management

Highlights © Business Management and Misc. Sessions to Include: - Farm to School - Labor and Legal - Whole Farm Revenue Protection

- Pesticide Drift - Irrigation - Aquaponics

© Annual Cider Contest © Thursday Evening Banquet © 70-Booth Trade Show

January 8 Keynote: Stacy Pasoni, “The Healthy Hippie Chef,” is a chef, author, and healthy living coach. Through in-person cooking demonstrations and a regular segment on “The Spiel,” a program seen on television and viewed globally on-line, Stacy influences thousands of consumers hungry for practical information on how to eat better. She has also been seen on The Today Show and Dr. Oz. Growing up on a small farm in southern Illinois, Stacy is passionate about using fresh local fruits and vegetables in her recipes and teaching. Stacy’s take on consumer’s perceptions will help growers better understand the mindset of a health-conscious society.

For more information: 309-557-2107 or dhandley@ilfb.org SG355W4

Go to www.specialtygrowers.org for full agenda

USDA accepting comments Target winter weeds with herbicides “However, delaying the her- due to variable weather and Herbicides applied in the bicide application until later in soil conditions following often can provide on beef checkoff program fall the fall (mid-November) often application. improved control of many

FarmWeek • Page 12 • Monday, November 17, 2014

USDA’s Agricultural Marketing Service will accept comments on a new industry-funded beef checkoff program until Dec. 10.

The new program would be in addition to the existing beef checkoff program, which assesses $1 per head to promote beef sales and research.

The USDA supplemental program would help the beef industry address such issues as improving and enhancing nutritional and consumer information through initiatives such as consumer advertising, education, research and new product development.

Comments should pertain to the following issues: • Who should be assessed?

• How should the board be structured?

• Who is eligible to serve?

• How should the board be selected?

• Should funding decisions be made by the full board or a smaller body elected from within this board?

• How should the assessment rate be determined?

• Should there be temporary or permanent provisions for refunds of assessments?

• How should assessments be collected?

A referendum on an order established under the 1996 Act would be conducted within three years after assessments begin to determine whether beef producers favor the program and if it should continue.

Comments may be submitted online at www.regulations.gov or sent to Beef Promotion, Research, and Information Order; Research and Promotion Division, Room 2096-S; Livestock, Poultry and Seed Program; AMS, USDA, STOP 0249; 1400 Independence Avenue, S.W.; Washington, D.C. 20250-0249.

winter annual weed species compared with similar applications made in the spring, according to a University of Illinois weed scientist.

Aaron Hager explained that fall-applied herbicides often control marestail better than spring-applied herbicides.

However, the question remains — will fall applications need to include one or more herbicides that provide residual control of winter annual weed species?

Typically, Hager said, the earlier the fall application is made (early October), the more benefit a soil-residual herbicide can provide since emergence of winter annual weeds is often not complete.

diminishes the necessity of a soil residual herbicide since most of the winter annual weeds have emerged and can be controlled with nonresidual herbicides,” he said.

“We do not recommend fall application of residual herbicides for control of any spring-emerging annual weed species. We are aware that some labels suggest the product will control certain summer annual weed species, including pigweed species, following application in the fall,” he said.

According to Hager, fallapplied residual herbicides provide inconsistent performance in controlling pigweed species the following spring

In addition, soil-applied herbicides are not immune from selection for herbicideresistant biotypes. Populations of several of the most challenging summer annual broadleaf weed species in Illinois demonstrate resistance to herbicides from more than one site-of-action herbicide class, Hager said.

“Their effective management requires an integrated approach that often includes soil-residual herbicides.

Applying these herbicides when they will be most effective against these challenging summer annual species is a critical component of an integrated management program,” he added.

Female farmers, ranchers, farm/ranch employees, agribusiness employees and college agriculture students can participate in an American Farm Bureau Women’s Leadership Committee online survey.

Aimed at gauging goals, aspirations, achievements and needs of women in agriculture, the survey can be completed at {womeninag.fb. org}. Farm Bureau membership is not required to participate.

Data collected from respondents will be used to gauge trends related to the achievements of women in agriculture, including leader-

ship positions, business successes and election to public office.

Participants will be eligible for an opportunity to win one of five, $100 gift cards after the survey closes. Preliminary findings from the survey will be released in February at American Farm Bureau Federation’s FUSION Conference in Nashville.

Women in ag urged to complete survey

Protecting your field is our scout’s honor.

We

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Great

Things

For Agriculture!

Illinois Farm Bureau At FS, we’re focused on crop performance. Our certified crop specialists will identify environmental conditions, crop growth stage and plant development to make agronomically sound recommendationss for each of your fields. It’’ss our goal goa to maximize every acre you farm and protect the local environment nment so you’re ready for what’’ss next. ne

www w.fssystem.com

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©2013 GROWMARK, Inc. A14140

ACTION TEAMs Don’t have a crystal ball? You don’t need one! The special skills you bring to the table can create great things for agriculture. Twice a year, you meet with team members from around the state to develop a plan for a statewide project. If approved, your idea is set into action to produce results for Farm Bureau and agriculture.

Work magic with a team that matches your interests.

Choose from Quality of Life, Consumer Outreach, Membership Promotion, or Leadership Development.

Applications are available at your county Farm Bureau. Return by Nov. 24.

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ROWN — Farm Bureau is accepting orders for citrus fruit and pecans. Call the Farm Bureau office at 773-2634 to place orders by Nov. 24.

UREAU — The Young Leader Committee will host Fill A Ford Saturday at the WZOE Farm Show to benefit local food pantries.

Nonperishable food items and monetary donations will be collected at the Farm Bureau booth.

• Farm Bureau will co-host an equine seminar at 6:30 p.m.

Dec. 2 in the Ag Arena at Black Hawk College-East Campus. Dr. Kim Stevens,

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Page 13 • Monday, November 17, 2014 • FarmWeek

Stevens Veterinary Clinic, and Donna Irvin, Black Hawk East, will speak. A live demonstration will take place in the equine arena.

• The District Caucus for election of Farm Bureau Directors will be at 9 a.m.

Dec. 4 at the Farm Bureau office. Nominations will be accepted for directors from District 1, District 2, District 4 and at large for the Bureau County Farm Bureau Board of Directors. Contact the Farm Bureau office if you are interested in filling a position on the board.

HRISTIAN — Farm Bureau will host a pri-

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New micro-talks featured at IFB Annual Meeting

Cooking tips, Palmer amaranth and unmanned aerial vehicles (UAVs) will be among 13 topics presented during new micro-talks at the 2014 Illinois Farm Bureau Annual Meeting.

Slated for Dec. 6-8 at the Palmer House Hilton in Chicago, the 20-minute presentations accompany a Dec. 8 lineup of standard, hour-long breakout sessions.

Micro-talks begin at 1:30 p.m. and conclude at 4:50 p.m.

Dec. 6 with topics including cooking tips, winter gardening, volunteer/staff recognition plans and Palmer amaranth control.

The lineup Dec. 7 includes sessions from 2:30 to 4:50 p.m. on video interview techniques, Common Core state standards and UAVs. St. Louis Science Center staff will provide a virtual tour of a new agricultural exhibit Dec. 8. Micro-talks will begin at 9:30 a.m. and conclude at 3:50 p.m. Other topics include iPad and smartphone apps, blog writing tips, crop acreage/production outlook and successful membership/ volunteer recruitment tips.

Breakout sessions begin Dec. 8 at 8:30 a.m. and conclude at noon. The concurrent presentations will focus on Big Data technology, the farm bill, social media tips, Chicago’s E15 ordinance, grain handling safety, Social Security retirement impact, new Ag in the Classroom activities and U.S. trade reform with Cuba.

A panel of farmers will talk about ways to retain the family farm following retirement. Other topics will include historical facts about former IFB Presidents Sam Thompson and Earl Smith, Chicago Field Mom Genevieve O’Keefe’s farm experiences and Field to Market sustainable agriculture efforts.

Micro-talks and breakout sessions require no advance registration for annual meeting attendees.

Tuesday: • FarmWeek: “The Early Word” • Eric Schmidt, EJS Weather • Melissa Rhode, Illinois Farm Bureau membership and program director: IFB member benefits • Randy Koehler, farmer, and Ryan Zimmerman, StraightLine Ag: StraightLine precision farming Wednesday: • Jerry Millburg, USDA

Illinois Department of Ag Market News Service: hay directory • Jim Bower, Bower Trading • Richard Guebert Jr., IFB president Thursday: • Tim Maiers, Illinois Pork Producers Association • Colleen Callahan, USDA Rural Development: USDA Deputy Secretary Krista Harden visit recap Friday: • WinField Agronomist • Alan Jarand, RFD Radio Network: live from the WZOE Farm Show in Princeton

vate pesticide applicator review class from 10 a.m. to noon Dec. 3 at the Farm Bureau office. Gary Letterly, University of Illinois Extension, will speak. Call the Farm Bureau office at 824-2940 to register by Dec. 1.

OOK — Farm Bureau will sponsor a Trim the Tree Contest from Nov. 26 through Dec. 15. Visit {cookcfb.org/Buy-Local/Pro grams} or call the Farm Bureau office at 708-354-3276 for contest rules and entry information.

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 Thursday.

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,

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COUNTRY Financial, will speak. Cost is $10. Call the Farm Bureau office at 5825116 to register.

ONTGOMERY — Farm Bureau will cosponsor farm bill informational meetings at 10:30 a.m. and 4 p.m. Dec. 2 at the Farm Bureau office. Dan Puccetti, Farm Service Agency, and Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 532-6171 for reservations by Nov. 26.

EORIA — Order forms for Florida citrus and Terri Lynn nuts are available at {peoriacountyfarmbureau.org} or by calling the Farm Bureau office at 6867070. Deadline to place orders is Thursday. Orders may be picked up at the Farm Bureau office on Dec. 17.

• Farm Bureau will sponsor a farm toy show from 9 a.m. to 4 p.m. Dec. 2 during the Greater Peoria Farm Show at the Peoria Civic Center. Call the Farm Bureau office for more information at 686-7070.

IATT — Farm Bureau is seeking barn wood from each township in Piatt

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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.

ERMILION — Farm Bureau will host its annual meeting at 6:30 p.m.

Dec. 2 at the Beef House Banquet Center. Registration and foundation silent auction will open at 5:30 p.m. Proceeds from the silent auction will benefit Agriculture in the Classroom. Entertainment will be provided by the Wabash College Glee Club.

Cost is $10 for M members and $20 for A members. Call the Farm Bureau office at 442-8713 by Nov. 26 for reservations.

• Order forms for Florida citrus, nuts and candies are available at {vcfb.info}. Local cheese, ham and honey are also available. Deadline to order is Friday. Pick up date will be Dec. 15.

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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity that is open to all members, contact your county Farm Bureau manager.

FarmWeek • Page 14 • Monday, November 17, 2014

USDA crop production, usage estimates somewhat friendly

BY DANIEL GRANT FarmWeek

Fall harvest remains on pace to set new production records in the U.S. With 90 percent of beans and 80 percent of corn in the bin nationwide as of the first of last week, USDA projects production will total a record 14.407 billion bushels of corn and 3.958 billion bushels of beans.

But the latest estimates, released last week in USDA’s crop production report, actually fell short of some analysts’ predictions.

“If there was a surprise (in last week’s report), instead of seeing a (corn) production increase, (USDA) actually reduced the yield .8 of a bushel,” Mike Krueger, of The Money Farm, said in a teleconference hosted by the Minneapolis Grain Exchange.

“That puts to rest talk of a 178 to 180 (national) yield.”

USDA currently pegs national yield averages at 173.4 bushels per acre for corn and 47.5 bushels per acre for beans. The bean yield increased .4 of a bushel from last month.

The corn yield estimate in Illinois remains unchanged at a record 200 bushels per acre. But USDA lowered its corn yield estimates by 5 bushels per acre in Minnesota, 3 bushels in Kansas and 2 bushels in Iowa.

Meanwhile, strong demand should continue to chew through the massive load of bushels.

USDA last week raised corn used for ethanol by 25 million bushels and left corn exports unchanged at 1.75 billion bushels.

Soybean use increased 20 million bushels for exports and 10 million bushels for crush, based on the latest USDA estimates.

“If the current production and consumption forecasts are actually verified, the big story this year will be that extremely large corn and soybean crops resulted in less than burdensome year-ending stocks,” said Darrel Good, University of Illinois ag economist.

Ending stocks were left unchanged at 450 million bushels for beans, and lowered 73 million bushels to 2.008 billion bushels for corn.

“There weren’t any of the big bearish fireworks (in the report) some people were anticipating,” Krueger said.

“There was talk of 2.4 billion to 2.5 billion bushel ending stocks (for corn). I don’t think we’ll see that.”

For soybeans, the bump in yield “was completely offset” by the increase in usage, he noted.

Prices could remain in the $9 to $11 per bushel range for soybeans and $3.20 to $3.80 for corn.

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-$60.08 $46.75 40 lbs. (cash) $75.00-$87.00 $83.51 Receipts

This Week 78,952 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 73,077

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $84.06 $85.64 -$1.58 $62.20 $63.37 -$1.17

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

Steers Heifers

This week $169.50 NA

Prev. week $165.70 $168.00

Change $3.80 NA

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 $239.83 $240.54 -$0.71

Lamb prices Negotiated, wooled and shorn, 121-170 lbs. for 155-175 $/cwt. (wtd. ave. 164.61); wooled and shorn pkg 171 lbs. for $151/cwt.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 11/6/2014 91.2 11.1 20.4 10/30/2014 102.0 7.7 16.8 Last year 88.2 12.5 17.2 Season total 495.8 414.3 290.1 Previous season total 432.7 612.9 223.9 USDA projected total 1700 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Trucks unload a bumper harvest of corn at Consolidated Grain and Barge in Olney. Despite intermittent rain delays, Richland County farmers have nearly wrapped up corn and soybean harvesting. (Photo by Richland County Farm Bureau Manager Caitlin Chrzanowski)

Production estimates also were affected by the fact USDA didn’t adjust acreage. Harvested area nationwide remains 83.1 million acres of corn and 83.4 million acres of beans.

“If there’s going to be

another adjustment to acres, it will have to be in the final numbers in January,” Krueger said.

In Illinois, crop production estimates came in at 2.34 billion bushels of corn and 514 million bushel of beans with an aver-

age yield of 56 bushels per acre.

Harvest in Illinois as of the first of last week was 91 percent complete for beans and 87 percent complete for corn, both slightly above average after a slow start to the season.

Propane demand, price situation reviewed

ing the last 10 years, we have seen a decline this How things can change in a year - or do they year of roughly 27 percent from a year ago. With ethane priced roughly at 28 percent of the value really? As I sat down to write this article, I of propane in Mount Belvieu, Texas, petrochemireferred back to an article that now-retired cals have switched to more ethane.

Randy Miller wrote last November. He talked Exports continue to grow as the U.S. is now a about grain dryer propane demand, petrochemnet exporter of propane. The August five-year ical demand, exports and his thoughts about average is just under 3 million barrels per winter prices. It seemed appropriate to day compared to current levels around cover the same topics this year.

12.5 million. Expansion projects and We can break things up by north and new export terminals are being planned south of Interstate 80 when talking dryon the Gulf Coast, East Coast and West er demand. All summer, many thought Coast. The question is which will grow record bushels and a slightly late plantfaster — production or exports? ing season meant a very high dryer gas Taking a look at inventories, both the season. The southern portion looked Midwest and the Gulf Coast sit above last like we were going to have a strong dryyear and the five-year average inventory er gas season until 70 to 80 degree Dan Pannier levels. Supply looks plentiful for week 43 weather during the last 10 days of Sepas we have finished grain dryer gas in the lower tember gave us a below-average drying season.

So far, it looks like demand will be strong in the Midwest. With crude trading under $80 as of writing, this would lead you to believe that propane north, so we’ll likely end up with an average will follow to some extent. Keep in mind, during year overall. the last three to four weeks, the percent of Petrochemical production facilities for plaspropane to crude has risen about 3 percent, so tics, household chemicals and other industries with good winter demand, propane prices could use propane as one of their feedstocks. The strengthen even if crude loses more value. highest petrochemical demand is usually in the summer months when production facilities are Dan Pannier serves as GROWMARK’s propane running at high rates.

Now where are we at? After seeing petrochem- operations manager. His email address is dpannier@growmark.com. ical demand for propane grow substantially dur-

BY DAN PANNIER

OSHA cites violations at Paris cornstarch processing plant

Workers were exposed to combustible cornstarch dust, excessive dust particles and other hazards at Septimus Inc., Paris, according to the federal Occupational Safety and Health Administration (OSHA). Following an April inspection, OSHA cited the company for 21 safety and health violations and proposed penalties totaling $46,400. The facility processes cornstarch for use in laundry

detergent and other products.

“OSHA’s inspection found that Septimus used potential ignition sources, like forklifts and electrical equipment, in areas where combustible dust was present,” said Thomas Bielema, OSHA’s area director in Peoria.

OSHA inspectors discovered workers were exposed because processing and dust collection equipment lacked protective covers. Inspectors also found industri-

al vehicles in poor repair that were not rated for use in environments with combustible dust. Those vehicles and numerous electrical violations provided potential ignition sources for the dust, according to OSHA inspectors.

Septimus officials have 15 business days from receipt of the citations to comply, request an informal conference with OSHA’s area director or contest the findings.

Corn Strategy

Corn grind for ethanol still robust

Even though it’s been a year since the Environmental Protection Agency (EPA) announced its proposed cut in biofuel volumes for 2014, ethanol demand and the related corn grind have remained robust.

The corn-based mandated ethanol volume was to be cut from 14.4 billion gallons in 2013 to 13 billion in 2014. And yet, ethanol output and the corn grind for ethanol increased.

Corn grind jumped from 4.64 billion bushels in 2012-13 to 5.13 billion in 2013-14. And so far this marketing year, the corn ethanol grind is running a little ahead of last year’s pace.

A small increase in U.S. gasoline demand has helped. It is .8 percent higher than last year

through the first 10 months.

And ethanol exports have been a little more robust as well. So far this calendar year, they have been nearly 50 percent larger than they were during the same period last year.

From what we hear about world demand, ethanol exports should continue to remain relatively robust, too. Still, it’s important to understand the current pace of exports has only absorbed 5.7 percent of the output so far this calendar year. That clearly puts most of the pressure on the ability to grind for the domestic sector.

The steady improvement in the U.S. economy and low gasoline prices should continue to stimulate gasoline demand somewhat, keeping domestic ethanol demand robust. That, and the export picture, support USDA’s slightly larger estimate of corn ethanol grind for the coming year. And there’s reason to think its latest estimate might still be a little conservative.

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ü2013 crop: The ability to post new highs continues to underscore the idea prices have turned the bigger trend up.

Still, it will take until spring for prices to reach acceptable levels. Storing inventories for the long haul should pay dividends. ü2014 crop: Corn prices may be closing in on a postharvest peak. Use rallies to make needed sales. Get to 50 percent priced if December futures hit $3.90. Use forward bids or hedge-to-arrive 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: The November USDA report’s smaller estimates mitigated some of the negative attitude in the corn market. But, given the supply, prices will struggle to sustain upward momentum over the next three to four months. Producers have been stingy sellers, but will need to make some sales to generate cash. ûFail-safe: Get 2014 crop sales to 50 percent if March futures close under $3.85.

Page 15 • Monday, November 17, 2014 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: Short-term demand remains the cornerstone supporting the soybean market. Prices are starting to attract some producer selling, and end users in soybean meal have become conservative at these higher prices. Use rallies for catch-up sales. Boost sales to 75 percent if January futures hit $10.95. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: The tight spot supply and high prices for soybean meal continue to be the key short-term factors driving the complex. By midweek, rumors indicated five to six cargoes of South American soybean meal were headed to the southeastern U.S. The $60 to $70 per metric ton price discount makes that feasible, but it will be near year’s end before they arrive. Our increasing crush pace is starting to refill the pipeline, too. South American planting is going well after difficulties at the beginning of

their planting season. Still, moisture totals during the last month have been less than normal.

Wheat Strategy

ü2014 crop: December Chicago futures have pushed over the $5.50 target. Price an additional 15 percent of production now, lifting the total to 65 percent. ü2015 crop: We see little reason to price new crop unless Chicago July is more than $6. vFundamentals: It was a strong market for wheat prices last week. Another reduction was made to 2014-15 wheat car-

ryout in Monday’s crop report.

USDA slightly trimmed acres and yield in an adjustment, pulling ending stocks down 10 million bushels. Developing weather worries helped extend gains through the week. The Australian wheat crop continues to get downgraded because of dry weather. Now, rain at harvest threatens the quality of the crop. There are concerns about dryness and poor condition for Russia’s winter crop and frost for Ukraine. And political tension between those two countries appears to be escalating again, adding to long-term supply uncertainty.

SAME CLOTH

FarmWeek • Page 16 • Monday, November 17, 2014

Cut from the

Little difference among farmers around the world

I’ve often fancied myself a wanderer, an explorer, or at the least, an adventurer wannabe. Happily raised in a small, rural southern Illinois community, I didn’t fully appreciate the value of international exploration. But when presented the opportunity to fly off to northeastern Scotland and experience agriculture through a whole new perspective, I jumped at the chance.

CASSIE Some background BECKER would be helpful.

I am a member of the American Agricultural Editors Association (AAEA), an organization focused on creating networking opportunities between writers, editors, photographers and other communications professionals like myself in the U.S. agriculture industry.

AAEA and more than 30 other national guilds comprise a larger international organization known as the International Federation of Agricultural Journalists (IFAJ). IFAJ guilds from around the world take turns hosting an annual congress of their agricultural industry, economy and uniqueness.

Above, columnist Cassie Becker makes a new friend at Cairngorm Reindeer Centre in Scotland. Right, German members of the International Federation of Agricultural Journalists sample Mackie’s of Scotland ice cream. (Photos courtesy of Cassie Becker)

This annual congress provided me the opportunity to see how agriculture in the United States compared to rural northeastern Scotland.

The week was a flurry of locations, local farms and learning. A common theme threaded amongst it all — no matter where in the world I may be, agriculture is present. It’s facing the same challenges, telling similar stories of family, sustainability and safety, and working hard to provide trusted products to consumers each and every day.

Some great examples of this stand out. Mackie’s of Scotland, an innovative dairy farm, is entirely self-sufficient and sustainable. A 300-head dairy cattle herd produces milk used to make the farm’s name-brand ice cream, approximately 2.5 million gallons of

which is sold in all major grocery stores in the United Kingdom.

Three wind turbines coupled with 175 kilowatts of solar panels on the cow barn are housed on Mackie’s 1,600 acres to power the barn and milking parlor as well as reduce dependence on fossil fuels. In an effort to maintain zero waste water, an individual water source recycles all the wash-down water back into the slurry lagoon for spreading on arable land. It serves as a natural fertilizer to grow silage that will then feed the dairy cows.

This trip put me on a reindeer farm in the hills of Aberdeenshire where I could experience agritourism at its best, and showed me how less-thansuitable land could be utilized to garner a successful income by converting the

hilly terrain of northern Scotland into forestry grounds and mountain bike trails.

It helped me build lasting friendships with agricultural communicators from all over the world. And most importantly, gave me a perspective I didn’t have before.

In agriculture, we’re cut from the same cloth, whether you live in the United States or Scotland. It may look a little different depending on your vantage point, but agriculture shares common values.

It is a noble purpose — to provide for others and nurture the land that has given us a life unlike any other.

COOL needs to head in different direction for closure

For the second time in two years, the World Trade Organization (WTO) has rejected USDA’s efforts to implement the congressionally mandated country of origin labeling (COOL) for meat.

The WTO again said the U.S. can ROSS KORVES have a labeling guest columnist program for beef and pork, but the current program forces U.S. packers to discriminate against Canadian cattle and hogs, and Mexican cattle. The Canadian government is preparing to place retaliatory tariffs on U.S. exports to Canada when the WTO approves them, probably not before late 2015.

Mandatory country of origin labeling for meat was passed by Congress as part of the 2008 farm bill. The governments of Canada and Mexico immediately initiated WTO

dispute settlement proceedings against the U.S. in December 2008.

In November 2011, a WTO dispute resolution panel confirmed the U.S. right to have a program, but disagreed with the way the U.S. designed its requirements, and determined that the rules provide less favorable treatment to Canadian and Mexican livestock than U.S. livestock.

A 2012 WTO Appellate Body ruling confirmed that position. In May 2013, USDA implemented a revised program it believed was consistent with U.S. law and the previous WTO ruling. A WTO compliance panel has now found that the COOL requirements for beef and pork continue to discriminate against Canadian and Mexican livestock exports.

Part of the problem for Canadian and Mexican cattle producers, and Canadian hog producers is that the industries

had achieved a high level of industry integration under the North American Free Trade Agreement (NAFTA). The resource efficiencies created by NAFTA are being undone by COOL. The U.S. is a two-time loser at the WTO on this issue, which indicates the need for a substantial course correction. USDA Secretary Tom Vilsack has told the media that he has requested his staff seek a fine line between the U.S. law about specific labeling and the WTO issue of importers’ segregation costs.

As a member of management in the executive branch, he has an obligation to carry out the law passed by Congress and signed by the president.

But this sounds too much like the first two failed attempts to have a creditable program.

A reasonable assumption is that COOL will be changed in some substantive manner. The

Cassie Becker serves as GROWMARK publications and media relations specialist.

most straightforward approach would be to adopt a NAFTA label. All beef and pork produced in the three countries would carry the label, and all exports from the three countries would be under a common system. This would be forcefully opposed by some of the biggest supporters of the current system. This option will not be chosen.

One easy answer is for Congress to repeal the law. That would take action by Congress that has been deeply divided on the issue for more than a decade.

Another easy answer is to make administrative changes under current law. That is a version of the Vilsack solution mentioned earlier. Those who support that solution have not put specific ideas on the table.

This could be viewed by the Canadians as a delaying tactic.

Others are asking Vilsack to suspend the COOL rule indef-

initely while efforts are made to work out an agreement.

This would remove the option of retaliatory tariffs for Canada.

An offshoot of this idea is to have Congress pass legislation to authorize and direct the secretary to rescind elements of COOL that have been determined to be noncompliant with international trade obligations by a final WTO adjudication. This would supposedly allow more members of the House and Senate to vote for more open trade rather than opposing COOL directly.

As losers of two WTO rulings, the U.S. government must find an agreement with Canada that honors our WTO commitments.

Ross Korves serves as a trade and economic policy analyst with Truth About Trade &Technology {truthabouttrade.org}.