The naTion’s aging waterways infrastructure is a “ticking time bomb” that could trigger major disruptions in ag commerce, according to a new report. ............4
REMEMBER TO VOTE TUESDAY
haRVesT essenTially is over for 2012, and thus ends the 21th installment of Cropwatcher reports. Most are glad to have the season end. ...................................6,7
Monday, November 5, 2012
Two sections Volume 40, No. 45
European hog farmer: Group housing ‘harder system’ BY DANIEL GRANT FarmWeek
Many hog farmers in Europe are going through some difficult times. They not only face higher feed and input costs, similar to their American counterparts, but they’re also dealing with higher production costs due to an ongoing transition in production methods. Legislation that takes effect in January in the European Union (EU) will require farmers to stop using gestation stalls and keep gestating sows in group housing. The law specifically will require all dry sows to be in group housing at least four weeks after service until one week before the expected time of farrowing. In the U.S., a number of food retailers/restaurant chains in the past year announced plans to source pork only from producers who do not use stalls. But most American farmers, for now, still have a choice of swine housing systems. Many farmers in the EU, meanwhile, had to absorb additional costs to change their facilities to group housing while others have delayed mak-
ing the transition or may choose to exit the business. Annechien ten Have, a pig farmer and member of the Dutch Federation of Agricultural and Horticultural Organization, recently discussed the challenges of converting her operation to group housing during an interview with the RFD Radio Network and FarmWeek. “I’m happy with the new system,” ten Have said. “But we have problems. “Every new housing system has problems in the beginning,” she continued. “There always are costs (associated with building new facilities or upgrading existing structures).” The hog farmer, who has 320 sows in her operation, wasn’t specific about the total cost to change her operation to group housing or if she had to hire additional workers. But the housing change affected her production practices. “Group housing is a harder system,” ten Have said. “If a sow has a (health) problem, she can’t survive there. Then you have to put her in a smaller group or crate.” On the plus side, productivity on ten Have’s farm has
according to ten Have. A switch to group housing systems in the U.S. likely would increase production and retail pork prices as well. And there may not even be a benefit to hogs for such a switch.
Nine academic studies on sow housing over the past eight years show no significant differences in animal productivity or welfare associated with use of sow stall vs. group housing, Nelsen added.
TEMPERATURE’S RIGHT
John Olson applies anhydrous ammonia to a field in rural McLean on a cool, clear day last week. A drop in temperatures in recent weeks cooled the soils and allowed farmers to apply fall nitrogen. The University of Illinois Agronomy Handbook recommends waiting until the soil temperature reaches 50 degrees to apply fall nitrogen. Topsoil temperatures on Thursday ranged from 45.7 degrees in Southern Illinois to 36.1 degrees in Northern Illinois, according to the Illinois State Water Survey. However, fall anhydrous applications are not recommended south of a line extending roughly from Jerseyville to West Union. More information on anhydrous applications appears on page 2. (Photo by Cyndi Cook)
Tuesday could decide farm bill outcome BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
increased by fourth-tenths of a piglet per litter. But any additional production changes should be driven by the market, not legislation, she maintained. “When retailers want it, they have to pay,” ten Have said. “We don’t want more legislation, otherwise farmers would have no position to ask for more money (from consumers or retailers).” Many European hog farmers have not adopted new housing systems as quickly as ten Have. Only seven EU states, in addition to Sweden and the United Kingdom (UK), are expected to be fully compliant with the gestation stall ban by 2013, according to Tamara Nelsen, Illinois Farm Bureau senior director of commodities. Nelsen is the leader of the Illinois Farm Bureau Animal Care Project Team. “In the meantime, the supply of pork meat has decreased markedly across the EU,” Nelsen noted. “That has resulted in increased prices and upset consumers.” The UK, for example, once was self sufficient in pork production but currently imports 40 to 50 percent of its pork,
Tuesday could prove a crucial turning point in farm bill debate — that is, in whatever form the debate might take. According to Patrick Westhoff, director of the national Food and Agricultural Policy Research Institute, this week’s national elections largely may determine whether Congress passes 2012, 2013, or 2014 ag legislation. “The conventional wisdom seems to be that if the election returns the current president and current makeup of Congress — a Democrat Senate and Republican House — there’s probably a better chance of getting a farm bill done during the (post-election) lame duck session,” he told FarmWeek. “It might not get done because of the farm bill being so important — it might get done as part of a large budget deal. But that
seems to be the single most likely scenario to get the farm bill done over the next couple of months,” he said. “If there were a significant change — a different president or a change in party control of the Senate or House — it’s much more likely no major decisions would get made until everybody takes power. “We’d do a temporary measure to get us beyond January, and then, some time next spring, we’d figure things out.” House Majority Leader Eric Cantor (RVa.) appears committed to his pledge to “raise the farm bill issue” on the floor during lame duck discussions, said Dale Moore, American Farm Bureau Federation deputy policy executive director. He predicted “Cantor’s going to stick to his guns,” though House Speaker John Boehner (R-Ohio) may be equally adamant in his refusal to move the measure if it
FarmWeek on the web: FarmWeekNow.com
appears to lack the necessary votes. Cantor has not indicated he would push for an actual farm bill vote, Moore stressed. That opens “the whole gamut” of possibilities, he said, from passage of House Ag Committee proposals with or without ag disaster provisions to a mere three-month or one-year extension of 2008 farm legislation or lawmakers deciding “not to do anything” until 2013. Even if a new Congress tapped existing Senate and/or House Ag Committee farm bill proposals, lawmakers could determine the Senate’s proposed $23 billion or the House’s $35 billion in long-term ag spending cuts are inadequate in reaching update 2013 budget targets, Westhoff advised. If Republicans take control of the White House and both congressional chambers, See Tuesday, page 4
Illinois Farm Bureau®on the web: www.ilfb.org
FarmWeek Page 2 Monday, November 5, 2012
Quick Takes HARVEST GUARANTEES — Crop insurance harvest price guarantees will be higher than those announced last spring. University of Illinois ag economist Gary Schnitkey has run numbers on how this will impact county-level Group Risk Income Protection (GRIP) policies. Using simulated GRIP-Harvest Revenue (HR) payments as a guide, 2012 GRIP with HR payments for corn will be large in some areas. The 2012 crop insurance harvest prices will be $7.50 per bushel for corn and $15.39 for soybeans. Revenue Protection (RP) and GRIP-HR insurance policies thus will make large payments under lowyield scenarios. The range of estimated GRIP-HR payments is from a low of $312 per acre for the west crop reporting district to a high of $865 per acre for the southeast district, according to Schnitkey’s analysis. More details are available at (farmdocdaily.illinois.edu/2012/11/2012_harvest_prices_for_corn_a.html). POLL MONITORING, VOTER RIGHTS — Illinois Attorney General Lisa Madigan reminded voters of their rights as they vote this week. Assistant attorneys general and investigators with the attorney general’s office plan to monitor Tuesday’s general election around the state. Voters have the right to vote if they are in line when the polls close at 7 p.m. A voter has the right to receive a replacement ballot if he or she makes a mistake on a paper ballot. No one is allowed to try to influence a voter within 100 feet of the polling place. Voters may contact the attorney general’s office if they encounter suspected improper or illegal activities. Northern Illinois voters should call 866536-3496, while downstate voters should call 866559-6812. ETHANOL PRODUCTION RISING — U.S. ethanol production surged to 825,000 barrels a day last week, a six-week high and a 3 percent increase from the previous week, according to a Department of Energy report. Ethanol stockpiles rose 2.4 percent to 19.2 million barrels, the biggest weekly gain since June 15. Corn prices had fueled an early fall decline in nationwide production, but winter fuel demand is perking up the market once again.
(ISSN0197-6680) Vol. 40 No. 45
November 5, 2012
Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.
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NuTRIENT MANAGEMENT
Soil tests, temperature key for fall nitrogen management Anhydrous spills must be reported
temperatures ranged from the high 40s to the low 50s. In addition to timing and rate, safety ranks as a third critical factor when working with anhydrous. Jerry Kirbach of the Illinois Department of Agriculture (IDOA) offered several safety BY KAY SHIPMAN reminders: FarmWeek First, farmers need to be sure they have sound Farmers should check their soil nitrogen levels and soil temperatures before applying fall fertilizer. personal protective equipment, especially goggles and gloves. An ample supply of clean water must Questions about the amount of residual nitrobe easily accessible. gen sparked an inventory of soil nitrate levels As for the equipment, around the state. The check to be sure safety University of Illinois chains are in place, safety and the Illinois Council are in the hitch pin, and for Best Management ‘The first time you receive a clips the hitch pin is sound, KirPractices recommend tool bar, do a walk-around. bach said. farmers base their fertil“The first time you ity budgets on fall soil Make sure everything is in receive a tool bar, do a walktest results. place.’ around. Make sure everyAnhydrous should thing is in place,” he advised not be applied until soil farmers. temperatures at the 4— Jerry Kirbach By law, farmers must inch depth have reached Illinois Department report anhydrous spills of and will remain below of Agriculture 100 or more pounds to local 60 degrees Fahrenheit if emergency responders, the a nitrification inhibitor Illinois Emergency Management Agency (IEMA), is included. the National Response Center (NRC), and their If no inhibitor is included, don’t apply anhydrous until soil temperatures reach and will remain local emergency planning committee. IEMA’s emergency notification number is 800below 50 degrees. 782-7860. The reporting number for NRC is 800“While applying once temperatures are 50 degrees Fahrenheit does not automatically prevent 424-8802. After IEMA receives notice about an agriculnitrogen loss, it does provide a better chance to ture-related spill, the agency contacts the IDOA. protect your investment,” said Fabian Fernandez, Local emergency responders and local emerU of I crop scientist. gency agencies vary from county to county. No fall nitrogen should be applied on any field When reporting a spill, a farmer will be asked south of a line extending from about Jerseyville to the name of the chemical and if it is extremely West Union. The Illinois State Water Survey posts daily tem- hazardous; an estimate of the amount spilled; time and duration of the spill; specific location; peratures of soil at the 4-inch depth. Go to whether the chemical reached land, air, or {isws.illinois.edu/warm/soiltemp.asp}. water; any known or anticipated health risks; On average, soil temperatures reach 50 degrees precautions needed; and the name and teleFahrenheit and continue to go down in the first phone number of a person who should be conweek of November in Central and Northern Illitacted for further information. nois. Last week daily maximum 4-inch bare soil
Finance Authority waives application fee for farmers The Illinois Finance Authority (IFA) is waiving the usual fee for farmers who apply for IFA programs through Jan. 31, according to Christopher Meister, IFA executive director. Farmers who face drought-related losses may consider IFA’s lending programs, Meister said. “These programs offer low-cost financing so farmers can make it through to the next growing season,” he added. The waiver will save farmers up to $300 for each application. IFA programs include: • An agricultural restructuring debt guarantee program that allows principal farm operators to consolidate existing debt and spread payments over a longer period; • A working capital guarantee program that allows principal farm operators to enhance credit eligibility for input costs related to planting and raising crops; and • An agricultural loan participation program that assists local banks that lend to farmers by buying part of the borrower’s bank loan, allowing the borrower to access reduced interest rates. IFA has helped finance more than 500 agricultural projects across Illinois through guarantee, loan, and bond programs available to farmers. For more information about the IFA’s ag lending programs, go online to {il-fa.com/agriculture} or call 618-244-2424.
Tuesday: • Michelle Damico, Michelle Damico Communications • Mike Marron, farmer and Illinois Soybean Association director Wednesday: • Brad Schwab, director of the National Agricultural Statistics Service Illinois field office • Bob Bradley, professor emeritus, Illinois State University Thursday: • Amy Bradford, GROWMARK manager of corporate communications • Mike Loyd, Farm Credit Services • Representative from Becker Underwood • Bob Stallman, American Farm Bureau Federation president Friday: • Sara Wyant, AgriPulse publisher • Rita Frazer, RFD Radio Network anchor and broadcast editor reporting live from the National Association of Farm Broadcasters annual meeting in Kansas City, Mo. To find a radio station near you that carries the RFD Radio Network, go to
FarmWeeknow.com, click on “Radio,” then click on “Affiliates.”
Page 3 Monday, November 5, 2012 FarmWeek
EDUCATION
FOOD for THOUGHT County Farm Bureau idea sparks grocers’ farm tour BY KAY SHIPMAN FarmWeek
Missouri grocer Joe O’Neil knows cuts of pork, but last week for the first time he saw the care given to sows and baby pigs that ultimately produce those cuts. “It’s amazing how they (farmers) keep track and how they distinguish” all the hogs, O’Neil told FarmWeek as he walked through a swine nursery building. O’Neil and his brother, Dave, along with the Missouri Grocers Association,
learned about gestation stalls and saw their use on the Deppe family farm, a farrowto-finish operation near Washington, Mo. The idea for a tour begin in Illinois with the Madison County Farm Bureau. “Our committee felt it was important for agriculture to contact food retailers in the St. Louis area to get (them) first-hand experience,” Madison County Farm Bureau President Steve Koeller told tour participants. “We hope we can work
Missouri farmer Nicole Reed describes her family’s care for little pigs to Missouri brothers and grocers Dave and Joe O’Neil, left to right, during a farm tour last week. An idea from the Madison County Farm Bureau Board of Directors sparked a discussion about gestation stalls and a hog farm tour for members of the Missouri Grocers Association. (Photos by Kay Shipman)
together and help everyone understand this issue and the importance of gestation
Illinois Farm Bureau Vice President Rich Guebert Jr., far right, and Madison County Farm Bureau President Steve Koeller, second from right, chat with Missouri farmers, left to right, Tricia Kuenzel, Melissa Deppe, and Nicole Reed during a tour of the Deppe family farm in Washington, Mo., last week. The farmers described to IFB members and members of the Missouri Grocers Association how they care for sows and young pigs
State offering local governments $1 billion for projects An Illinois Clean Water Initiative offers local governments $1 billion in long-term, low-interest loans for drinking water and wastewater projects. Gov. Pat Quinn recently directed the Illinois Environmental Protection Agency (IEPA) and the Illinois Finance Authority (IFA) to expand the state’s revolving loan fund for water projects. The existing loan program, rules, and forms remain the same, and no application deadline exists. The $1 billion in funding will be phased in over the next two years and is financed
through the sale of bonds by IFA. The Clean Water Initiative will leverage federal grant funds through IEPA’s existing loan program along with loan
repayments by the communities. Information about the initiative and the application process is available at {epa.state.il.us/water/}.
Eleven Illinois grain dryer upgrades funded Eleven Illinois grain dryer upgrades were among 244 projects nationwide selected for USDA’s Rural Energy for America Program (REAP) funding, U.S. Agriculture Secretary Tom Vilsack announced. REAP offers financial assistance to farmers, ranchers, and rural small businesses to purchase and install renewable energy systems and to improve energy efficiency. USDA announced more than $16 million in energy funding. For more information on Rural Development projects, visit Rural Development’s new interactive web map at {rurdev.usda.gov/RDSuccessStories.html}.
stalls,” Koeller said. Deppe daughter Nicole Reed explained not only the importance of gestation stalls on her four-generation family farm but also how confinement buildings improve animals’ health. Her comments were confirmed by swine veterinarian Dr. Steve Patterson, who explained reasons for gestation stall use. Missouri farmer and former national Farm Bureau Young Leader Farmers and Ranchers Committee Chris Chinn also spoke. Group members included Illinois Farm Bureau Vice President Rich Guebert Jr., IFB Director Chad Schutz, and IFB and Missouri Farm Bureau staff. “We really don’t get many questions (from customers about gestation stalls),” commented O’Neil, who has a background in meat cutting.
“I’m surprised by all the publicity it’s getting. I really don’t find consumers with questions (about stalls).” His brother, Dave, added the brothers previously talked about the unfairness of onesided presentations against gestation stalls. On his first visit to a modern hog farm, Dave O’Neil noted the extensive information collected about each animal. “These people are very intelligent,” he added. Dan Shaul, state director of the Grocers Association, proposed the tour and discussion be the start of an educational effort by grocers and farmers. IFB and the Missouri Farm Bureau will discuss the grocers’ farm tour and future educational opportunities and tours. “The worst thing that can happen to us is when consumers come to us and we can’t answer their questions,” Shaul said.
FarmWeek Page 4 Monday, November 5, 2012
government
Farm Bureau floats transitional ag labor plan BY MARTIN ROSS FarmWeek
Farm Bureau hopes a proposed multi-tiered approach to meeting U.S. ag labor demands might help restart the stalled federal immigration debate while providing improved options for foreign workers and ag employers alike. The American Farm Bureau Federation (AFBF) Board of Directors unanimously supports a plan by AFBF’s multistate Agricultural Visa Workgroup that would enable currently undocumented temporary laborers to continue working in U.S. agriculture as they seek a path to legal status. The plan proposes a new five-year worker “ag card” and a two-pronged worker visa program that offers ContractTemporary Worker or NonContract Temporary Worker Visa options. The proposal would not affect the existing federal H-2A ag guest worker program, which has proven impractical, especially for dairy operations with year-round production. According to the working group, the new plan offers “stability for employers and portability for workers” who seek jobs in a number of sectors over a season or in longterm dairy or livestock employment. AFBF has gained broad cross-sector support for the plan, which it hopes with other ag groups to pitch to Congress as a transition toward a more effective, permanent guest worker program.
At last week’s AFBF Labor Conference in Rosemont, workgroup participant and Michigan Farm Bureau national issues specialist Ryan Findlay argued the ag card is aimed at longer-term workers “who’ve kept their nose clean” and whose talents are critical to larger crop and livestock operations. Temporary worker visas are designed to assure “a future flow of workers” as current laborers retire from the ag workplace, Findlay said. Those individuals could enter the U.S. either to work for a specific employer or provide services as needed, potentially in various regions. Findlay noted his state annually uses some 45,000 seasonal ag workers in specialty crop, dairy, and livestock and poultry operations. “There’s a question mark as to how many of those workers could be undocumented or illegal,” he told FarmWeek. “We still need that labor — the cows still need to be worked; we still need to pick the apples. “I think everyone throughout the U.S. would agree there has to be some mechanism to allow workers who currently are here to transition, to adjust their status, to allow them to work here — for them to be able to step forward and say, ‘I’m not documented, but I’ve worked in agriculture and I promise to work in agriculture, and I’m going to figure things out over the next five years.’” Representatives of 10 state Farm Bureaus developed work-
group proposals based on grassroots input. Louisiana’s Brian Breaux noted acute worker shortages over the past 15 years, particularly in his state’s poultry, sweet potato, and sugar cane sectors. “We have able-bodied (local) workers, but we have trouble getting them to accept our jobs,” Breaux related. Nearly 50,000 non-contractual workers are needed at the height of Yuma, Ariz.’s iceberg lettuce season. On average, about half live north of the U.S.-Mexican border; the rest “commute” from Mexico. But amid growing border issues and what he termed Arizonans’ “xenophobic attitude” toward immigration, Arizona Farm Bureau Governmental Relations Director Joe Sigg notes “all kinds of tensions” emerging. Sigg stressed workgroup efforts to address political sensitivities regarding immigrant labor. For example, ag card holders could work in the U.S. year-round, but they would be required to prove an ag work history and maintain continuous ag employment. Workgroup members argued the plan would dovetail nicely with electronic “E-Verify” systems that help employers ensure worker identity and eligibility. The plan reportedly would ease anxieties among both ag employers and workers. “If (immigration critics) trust E-Verify, then this program should work for them,” AFBF labor specialist Kristi Boswell suggested.
Plan aimed at defusing ‘ticking timebomb’ A new United Soybean Board (USB) report calls the nation’s aging waterways infrastructure a “ticking time bomb” that could trigger major disruptions in ag commerce. A Midwest senator hopes to defuse that bomb through legislation aimed at replenishing funds needed to rehabilitate and modernize key river locks and ocean ports. In its report, “America’s Locks and Dams: A Ticking Time Bomb for Agriculture?,” USB focuses on ag transportation on the Upper Mississippi, Illinois, and Ohio rivers. An interactive map (visit {unitedsoybean.org/americas-locksdams-a-ticking-time-bomb-for-agriculture} on the web) shows how failures at any of five locks could affect agriculture. A two-week failure at either Mississippi Locks 20 or 25 reportedly could cost farmers $2.8 million, while a one-month shutdown could cost $4.9 million. A long-term closure at the 73-yearold LaGrange Lock would result in similar losses. And that’s not counting the cost of lost opportunity. Alejandro Jaramillo, logistics manager with Colombian feed supplier Contegral, sees infrastructure improvement as crucial to the U.S. competing with Brazil and Argentina in Latin American markets. Concerns about South American port delays already weigh “in favor of the United States,” said Jaramillo, who recently toured East Alton’s Melvin Price Lock.
“If you have a well-developed supply chain and low crop transport costs to the export terminals, you could go to more markets with a more competitive price,” he told FarmWeek. In 2007, Congress approved Locks 20 and 25 and the LaGrange Lock for new 1,200-foot lock chambers, but lawmakers have not yet approved construction funds. USB’s report came on the heels of Sen. Lamar Alexander’s (R-Tenn.) introduction of the American Waterworks Act, a measure designed to address lock and U.S. port funding challenges. The bill supports provisions of an Inland Waterways Users-U.S. Army Corps of Engineers agreement that would boost revenues to the Inland Waterways Trust Fund through a voluntary barge fuel tax hike. The waterways fund finances half the cost of most lock projects, and waning revenues have made it tougher to promote federal lock funding. At the same time, Alexander proposes to speed lock construction permit approval. The measure would provide full federal funding for maintenance of harbors up to 50 feet deep. Expansion of the Panama Canal will accommodate ships with a 50-foot depth. Alexander’s plan would authorize a five-year harbor construction program to accommodate use of larger, higher-capacity vessels anticipated after canal expansion is completed in 2014. — Martin Ross
Employer vigilance key to avoiding penalties In the face of heightened immigration enforcement, Midwest ag employers must dot their I’s and cross their T’s while ensuring they don’t cross the line. So says California lawyer Anthony Raimondo, who suggests seemingly burdensome worker paperwork may be the farmer’s best protection against federal scrutiny or sanctions. Amid gridlock over immigration policy and public concerns about undocumented foreign workers, federal labor enforcement is on the rise. Federal Form I-9 verifies a worker’s identity and legal authority to work in the U.S. However, I-9 filings have become “such a routine part of the hiring process” that employers may neglect to properly review worker documentation, Raimondo warned. While it’s not unlawful simply to hire an unauthorized worker, he stressed “it’s illegal to knowingly hire an undocumented worker.” In some cases, “the I-9’s the thing that will keep an employer out of jail,” he said. The lawyer urges producers to periodically audit I-9 paperwork and train farm managers and supervisors in the verification process. Michigan dairy producers Johannes Martinus Verhaar and Anthonia Marjanne Verhaar were sentenced in 2011 to lengthy probation and fined nearly $735,000 for hiring and “harboring” illegal aliens. The pair was charged with failing to adequately verify worker eligibility. “Ironically, we’re seeing enforcement more in the Midwest than in California,” Raimondo told FarmWeek at last week’s American Farm Bureau Federation Labor Conference in Rosemont. “Strangely enough, in California agriculture, the enforcement’s been somewhat limited. In the Midwest, we’ve seen the fines, the jail time.” An employee must complete an I-9 before performing any work; employers must provide new hires a list of acceptable identification and work authorization documents. For a list of documents, visit {uscis.gov/files/form/i-9.pdf}. Employers should be able to “attest under threat of perjury” that documents appeared legitimate and immediately fire workers they know to be undocumented, Raimondo insists. They nonetheless walk a federal tightrope. For example, they can’t require a worker to provide a Social Security number. Employers shouldn’t fire a worker simply because they receive a federal “mismatch letter” questioning Social Security information, Raimondo said. He recommends employers giving workers a 90- to 120day deadline to resolve discrepancies with the Social Security Administration, to avoid discrimination or other claims. “We can’t presume someone is an undocumented immigrant because of their appearance or clothing or the color of their skin or their ethnicity,” Raimondo stressed. “If people can produce documents that are legitimate or appear legitimate, the employer has to respect those documents and hire them.” — Martin Ross
Tuesday Continued from page 1 he anticipates “the most important bill of 2013 will be a budget reconciliation bill.” In that event, current bipartisan House-Senate proposals could be cast aside, Westhoff said. With current ag spending in place through March under a budget continuing resolution and 2012 commodity programs operating through August, the House could simply move to block reversion to 1949 farm legislation, Moore suggested. “Permanent” ag policy authority would kick in if an existing farm bill expires without a new one, but Westhoff noted the market and price perils of reactivating program policies and triggers drafted in the 1940s. “We’re confident that the issue of addressing the farm bill will be brought up,” Moore told FarmWeek. “What we don’t know is how they intend to address it.”
Page 5 Monday, November 5, 2012 FarmWeek
production Illinois Farm Economics Summit Dec. 10-14
Farm economy going through transition period
The year 2012 was supposed to be a year of record-large crop production and a drop-off in crop prices, based on numerous pre-season forecasts. But farmers instead experienced just the opposite — a major drop-off in crop production (due to the epic drought), record-high crop prices, and historically tight stocks. Now, farmers are trying to sort through the unusual pro-
duction year, along with political uncertainty, as they plan ahead for 2013 and beyond. “Agriculture is in a state of transition from this year — which featured the drought, high prices, and some likely big insurance payments — to hopefully a more normal production year next year,� said Darrel Good, University of Illinois ag economist. U of I specialists will host a series of Farm Economics Summit meetings around the state
next month to help farmers plan for issues such as price volatility, rising input costs, income prospects, crop insurance, crop rotation decisions, and biofuels and farm program policies. The theme of the event is “managing for turbulent times.� “Part of that (economics outlook) is how (crop) supplies rebound and the whole biofuels policy (and its effect on supply/demand),� Good said. “We’ll also see where we’re at with the farm bill and what
Many farmers obviously were disappointed with their corn yields this year. USDA last month lowered its forecast for the state’s average yield from 110 to just 98 bushels per acre, down 59 bushels from last year. There also were reports of additional yield losses in some corn-on-corn fields. However, this year’s results are not expected to have much effect on next year’s rotation plans. In fact, farmers in some areas could plant even more corn. “In the heart of the Corn Belt, I don’t see a lot of changes (in crop rotation),� Daryl Starr, president of Advanced Ag Solutions, a consulting company that works with farmers in Illinois, Indiana, and Ohio, said recently at the Doane Ag Outlook Conference in St. Louis. “There could be incentives to go back to corn in Illinois.�
An early harvest this fall allowed many farmers to complete fall tillage and fertilizer applications. Steve Ruh, a corn grower from Sugar Grove (Kane County) plans to plant a large amount of corn acres in 2013. He believes most of the drought-induced yield variability on his farm this year was due to differences in soil types as opposed to rotation choices. “I think we’ll be heavy on corn again next year,� Ruh told FarmWeek. “The economics still favor corn.� Corn yields on Ruh’s farm this season ranged from 100 to 180 bushels per acre. “Genetics and seed quality really shined this year,� he said. “Twenty years ago, we wouldn’t have had near these yields (in the midst of a major drought).� Marty Foreman, senior economist with Doane Advisory Services, predicted U.S. farmers
next year will plant 96.5 million acres of corn, down slightly from 96.9 million acres this year. U.S. soybean plantings were projected to grow by 800,000 acres next year to 78 million. “The economics still say we need to plant more corn,� Foreman said. “A reduction in some cornon-corn (yields) won’t put too much downward pressure (on plantings in 2013),� he continued. “But it will be a limiting factor and keep corn acres from jumping to 97 or 98 million.� Soybean yields have been a pleasant surprise this fall after late-summer rains saved a good portion of the crop. USDA predicted the Illinois bean crop this year will average 39 bushels per acre. USDA will update its crop production estimates on Friday. — Daniel Grant
BY DANIEL GRANT FarmWeek
Disappointing yields shouldn’t affect plantings
changes may be coming down the road.� The Economics Summit will be held Dec. 10 at the I Hotel and Conference Center in Champaign; Dec. 11 at the Illinois Center for Agriculture in Sycamore; Dec. 12 at the Best Western Prairie Inn in Galesburg; Dec. 13 at the Holiday Inn in Mt. Vernon; and Dec. 14 at the Doubletree Hotel in Bloomington. More information is available and registration for the meetings may be completed online at {farmdocdaily.illinois.edu}. Overall, USDA projected net farm income this year will reach a record-high $122 billion as the value of this year’s crop and crop insurance were
projected to more than offset declining milk sales and rising production expenditures. But Good noted USDA’s record income outlook masks the fact that crop output was extremely spotty and there are a number of farmers dealing with financial difficulties. “The USDA numbers always look at total income and not the distribution of that,� the ag economist said. “There is a huge amount of (income) variability in the crop sector. And, if you include the livestock sector, the picture is very different. It’s not nearly as rosy.� Overall, U.S. farm production expenses this year were forecast at a record-high $325 billion, up $18.6 billion from 2011.
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FarmWeek Page 6 Monday, November 5, 2012
Last report of the season. Bernie Walsh, Durand, Winnebago County: We went the whole week without rain, so cor n har vest continued nonstop. Lots of farmers are finishing up with corn now, and there may be only 15-20 percent left in the field. What a year it has been! The combination of very little rain and several 100-plus degree temps during pollination resulted in about half of last year’s corn yields. The variation in yields, even within a field, has been incredible. It was not uncommon to see the yield monitor go from 0 to 200 all in the same row of corn. Thank goodness the beans were better, with some surprising good yields of 60 to 70 bushels per acre (bpa). Mother nature also had an impact on the beans with a late-season hail storm stripping some of the best fields down to single-digit yields. This will certainly be a year to remember, and as far as I know, we will all be back here farming again next year. Thank you to all the readers throughout this growing season, and I look forward to reporting again next year. Leroy Getz, Savanna, Carroll County: We ended October with a dr y week, allowing most harvest to be completed. Corn and soybean yields were good and bad. Hay production was below average, even with the extra cuttings. My friend, Tommy, told me he made his seventh cutting this week — a record for anywhere. This year tested our endurance. Hopefully, 2013 will be a better year. Thanks to the many readers for reading and responding to my reports. Now, don’t forget to vote. Ken Reinhardt, Seaton, Mercer County: It was finally a good week to finish soybean har vest. Ver y little cor n or beans are left. Yields turned out to be pretty much average on crops other than some cor n-on-cor n fields. Cor n planted after the rain delay into May was better, but wetter than the late-April planted corn. My no-till plot planted in mid-May went from 176 to 238 bpa with about 200 bushels and a 20 percent moisture average. Anhydrous ammonia applications have begun with good soil conditions. The subsoil, of course, is very dry and is a concern for next year. Ron Moore, Roseville, Warren County: We did not receive any rain last week. There are still just a few acres of corn and soybeans left in this area, and those acres s h o u l d g e t h a r ve s t e d t h i s week. The dr y weather has allowed lots of tillage and fertilizer application to take place. This is the first week I have seen any anhydrous ammonia being applied. We finished cleaning the pits last week and should finish tillage this week. Soon the task will be planning for the 2013 crop year and the winter meeting season. Have a wonderful holiday season and a great crop next year. Tim Green, Wyoming, Stark County: It was a busy week. Things dried out a little. Tillage and some fall anhydrous applications were starting the end of the week. There are scattered fields of soybeans yet to harvest. Corn is pretty well wrapped up. The harvest was a little better than we all thought, but not as good as we hoped. As the old saying goes: “There’s always next year.” Be safe. Have a good winter. Mark Kerber, Chatsworth, Livingston County: Another planting, growing, and harvesting season is behind us. The weeks, months, and years seem to fly by. This year for many, gave us drought almost as bad as what we had in 1988. It’s time to sit down with a federal crop adjuster if you had insurance and close out 2012. This past week was dry, and most everyone completed harvest. There is much tillage going on, as the soil is working well. The strip-till guys have started their operations. Our input prices are pretty much determined for next year, but the uncertainty of yield and price make it interesting. Have a great winter and we will see you at the farm shows.
CROPWATCHERS Ron Haase, Gilman, Iroquois County: With the drier weather, it was a busy week in the fields. Fertilizer and lime were spread. The soil dried out to allow tillage to resume and a n hy d r o u s a m m o n i a t o b e applied. Harvest continues for the last remaining corn and soybean fields. We need three full days to finish our corn. In looking over the results of our cornfields, the fields we planted in April were not profitable. The fields that we planted in May have all been profitable. The corn we planted in May avoided pollinating during the extreme heat and was able to benefit from the late-season rains. Overall, our average corn yield for all our farms combined will be our worst since 1995. This is due to the corn we planted in April. The local closing bids for Nov. 1: nearby corn, $7.51; fall 2013 corn, $6.07; nearby soybeans, $15.49; fall 2013 soybeans, $13.17. Brian Schaumburg, Chenoa, McLean County: NH3 applications are in full swing and some combines are still working in soybeans. The year 2012 can be summarized as follows: a fast start in excellent conditions, low subsoil moisture, a wedding, triple-digit heat, 10 percent of nor mal rainfall, aflatoxin, insurance claims, and a late bean harvest. We always start out hopeful and end up thankful. I can’t wait to see what next season brings! Blessings to all. Corn, $7.53; January, $7.58; fall 2013, $6.21; soybeans, $15.35; January, $15.37; fall 2013, $13.17; wheat, $8.27. Steve Ayers, Champaign, Champaign County: Parting is such sweet sorrow for this year’s roller-coaster ride of a growing season. We finished beans last week with yields ranging from 47-51 bpa. The Labor Day rains were a bean maker for us. Countywide, we are 97 percent finished with corn and 83 percent with soybeans. Topsoil moisture is 5 percent short, 89 percent adequate, and 6 percent surplus. Compare that with May 3 at 3 percent short, 96 percent adequate, and 1 percent surplus, so we are about back to where we started this season. My sister lives 15 miles north of New York City. Sandy was not too bad for her family but power still looks several days off and gasoline is nowhere to be found for their generator. It’s going to be a long recovery for New York and New Jersey. Happy trails to you, until we meet again! Wilfred Dittmer, Quincy, Adams County: Another year of crop watching is drawing to a close, and what a year it was. From the exceptionally dry early spring to the hot dry summer, it has been a challenge to everyone. Thanks to all you faithful readers for your comments and input. Even though the bins are not full this year, the year 2013 hopefully will be better. Have a safe winter. Tom Ritter, Blue Mound, Macon County: Harvest and most tillage work are virtually completed in this area. Anhydrous tanks started rolling with quite a few acres being treated. Overall, farmers are winding down the fall season. Most are fairly pleased with yields, even though they were all over the board. Hopefully, crop insurance will make up any shortfall, and the higher prices definitely will take some of the sting out of short yields. Overall, corn seemed to have more of a major hit than soybeans. There is a big election this week. Don’t forget to vote. Todd Easton, Charleston, Coles County: A break in the wet weather pattern gave Coles County producers an excellent week to finish up crop harvest and fall tillage work. Ser vice companies have been busy with dry fertilizer application and starting anhydrous ammonia applications in a few fields. If the weather stays clear over the next week, the end of the year’s fieldwork will be in sight, and we will gladly move on to the next year. Watching a whole crop that we invested so much time, effort, and money into get all but wiped out by forces
well out of our control is a hard reality to get through. But with a farmer’s resolve, we did. We have reached the end of another interesting Cropwatcher season and will see you again next May for the crop year I’m dubbing “Lucky 13.” Until then, have a good off season with the family and don’t forget to cast a vote for the future of this great nation. Jimmy Ayers, New City, Sangamon County: This past week we received half of an inch of rain. Fieldwork was finishing up. Anhydrous applicators were rolling along pretty hard. This year will go down in the books. It started out looking like an excellent year and ended up with yields all over the board. We had some corn here produced as low as 57 bpa. Beans were actually good for the year at 48 to 72 bpa. Drought years are hard to predict and hard to plan for. You don’t want to make drastic changes over things that you noticed this year. The drought did show us how different varieties of corn react to stress. Hope you have a great winter. Doug Uphoff, Shelbyville, Shelby County: How time flies! This is our last report. What a year! It’s one for the record books as far as corn yields and the price of commodities go. We star ted the year looking like we had a bumper crop on the way and then the heat and dry weather came. Fortunately, the first week of August brought rain and salvaged bean yields in our part of the county. It did mess up maturity of our 3.4-maturity beans. We finally got those cut, by the way. Quite a bit of wheat is going in the ground. We planted 40 acres early and are planting 25 more acres that just dried up enough to plant. See ya next year. Don’t forget to vote. Also pray for those on the East Coast. It has been a pleasure writing for Cropwatchers this year, and I deeply appreciate all the positive response I have received for doing it. David Schaal, St. Peter, Fayette County: A recap of 2012: This spring got off to a pretty good start. Planting was about normal for us, then rains came after some mid-Apr il corn was in the ground. It was 10 days into May when we returned to the fields. Some April cor n was replanted, which, looking back, was a mistake. But then May corn went in great, jumped out of the soil, and looked good. Then summer heat hit early and when it hit, it was here to stay with 100-plus degree days, no cool-down at night, and no rainfall. Rains came in late August and somehow saved the soybean crop. Corn was absolutely horrible. Couldn’t even report yields on some, because there was none. Now rains come pretty easy. Farmers with double-crop beans are rutting fields as they harvest. Producers wanting to sow wheat are chipping stubble fields open to dry them out. There was some wheat sown last week, along with the fall spraying, spreading of fertilizer, and also some fall tillage. We’ll see ya in 2013, and we’re hoping for a better corn report next year. Jeff Guilander, Jerseyville, Jersey County: With harvest done, many have started fall tillage and fertilizer applications. Last week it looked like we may be in for a short fall with the rain, but now it looks like we will get a good jump on 2013. It always amazes me how much can be accomplished in a week when things fall into place. Best of luck for 2013. Dave Hankammer, Millstadt, St. Clair County: The weather this past week was cool and dr y, which allowed fields to dry out. The high temperatures in the 60s and lows near the freezing point remind u s o f a t y p i c a l fa l l s e a s o n . Farmers this past week made a push to plant winter wheat as soil conditions became suitable for tillage. Some earlier-seeded wheat fields have been treated for fall aphids. The extended warm temps into the fall allowed insects to be a pest in the growing crop. Any crops remaining in the field at the time of this report will soon disappear as farmers will be wrapping up the harvest season. One important chore that needs to be done this season is to get out and vote for the candidates of your choice. Local grain bids: corn, $7.07; soybeans, $15.36; wheat, $8.34.
Page 7 Monday, November 5, 2012 FarmWeek
CROPWATCHERS Rick Corners, Centralia, Jefferson County: Battles are still going on, but the war is about over — the 2012 crop year that is. Wheat is being sown like it’s the first week of October and not the first week of November. I guess it will come up in standing water. Lots of beans remain in the fields. We finally had a killing frost Thursday night, so now maybe they will get ripe. Probably some people wish they would have taken a disc to some of the double-crops last summer. Oh well, next year will be better. That’s the thought that keeps us going. Happy trails to you, until we meet again.
Dean Shields, Murphysboro, Jackson County: No rain last week, so we were able to finish soybean harvest. All I have left is a few wheat field beans, but the rest of the crop is done. I believe most of the wheat in this area has been planted by now with a lot of it up and looking good. The bean harvest, yield wise, came in better than expected as a whole, but not very good compared to average. Last year, I had the worst flood of my farming life, and this year, I had the worst drought of my life. I wonder what will come next year? We will just have to wait until then to see. This is why we love the job. Everyone have a safe winter.
Kevin Raber, Browns, Wabash County: I cut the first of my double-crop beans Thursday. The beans were dry, but the yield was about 30 bushel an acre. That’s a good yield for double-crop beans in a normal year — exceptional for this growing season. In closing out my reports for 2012, I will say it will be a year that will be remembered, but as always, the Lord has blessed us with another successful harvest. Be safe finishing up 2012 and plan for an interesting 2013.
Randy Anderson, Galatia, Saline County Thanks to all for reading and the encouragement to write this summer, although there’s not a lot to report on the farm at times and I get too busy to write or call in. Final numbers on corn yields: 15 bpa and soybeans, 16 bpa. Wishing all fellow farmers a much better and prosperous year in 2013! Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com
Ken Taake, Ullin, Pulaski County: It was a beautiful week weather-wise here in deep Southern Illinois. I think everybody was in the field. We managed to spread quite a bit of lime, and that’s been our main activity for the last week. Harvest has all but finished here. There are still a few fields of soybeans left — mostly double-crop beans that got planted later and had slow emergence because of the dry soils. To summarize the year: Probably the biggest thing is I’m glad it’s over. Our final corn yield was about equal to our soybean yield, so that gives you an idea of how poor things were here in deep Southern Illinois, and we were better than some. I guess it’s time to just start looking forward to next year, and, hopefully, it will be better. Please have a safe winter and be careful if you are finishing your harvest activities. Dan Meinhart, Montrose, Jasper County: We had a mostly sunny, cold, and windy week. Corn and bean harvest is pretty well wrapped up except for some double-crop beans. Wheat sowing is almost complete. Fertilizer and lime application continues along with fall tillage.
Drought recovery continues; harvest nears completion BY DANIEL GRANT FarmWeek
A cool, wet October eased the drought at many locations in Illinois, particularly south of Interstate 80. In fact, the majority of the southern two-thirds of the state no longer is in drought
FarmWeekNow.com Check out the latest drought information for Illinois at FarmWeek-Now.com.
and now is abnormally dry or back to normal (see graphic). “In the last two months, especially in central and southern portions of the state, we’ve made good progress recharging the soil moisture,” said Jim Angel, state climatologist with the Illinois State Water Survey. “There still are some lingering shortages of
sub-soil moisture,” he added. Topsoil moisture last week in the state was rated 80 percent adequate to surplus, with 20 percent short or very short. However, the majority of subsoil moisture (57 percent), last week still was rate short or very short. The improvement in conditions was the result of aboveaverage precipitation the past two months. The statewide average precipitation in October was 3.9 inches, 0.7 above normal, while the temperature averaged 52.2 degrees, 1.9 degrees below normal. A band of the state from Quincy to Champaign received 4-7 inches of rain last month. “We’ve had welcome rains here lately, 4.5 inches since Oct. 15,” said Steve Ruh, a farmer from Kane County’s Sugar Grove in Northern Illinois. “The soil definitely is getting recharged.”
The driest was the northwest sector in the state last week. It was listed as in moderate drought compared to severe drought last month. Meanwhile, the drought intensified west of the Mississippi River last week while flooding inundated the East Coast due to Hurricane Sandy. “The drought has shifted westward,” Angel said. “The High Plains are the hardest area at the moment. It could cause some lingering concerns next spring.” Farmers in recent weeks made a great deal of progress in their fields, despite the return of more consistent rainfall in much of the state. Harvest last week was 94 percent complete for corn, compared to the average of 69 percent, and 87 percent complete for soybeans, compared to the average of 80 percent. The majority of sorghum
The drought in Illinois, which reached its peak in August, had eased considerably and even had dissipated in some areas as of last week.
(86 percent) last week was harvested statewide, compared to the average of 65 percent, while 81 percent of the winter wheat crop was planted, slightly ahead of the average pace of 79 percent.
East Coast recovering from superstorm
Commodity markets return to ‘business as usual’
Hurricane Sandy, which turned into a superstorm last week when it slammed into the eastern U.S. coast, left quite a trail of devastation. The storm as of late last week caused at least 72 deaths in the U.S., grounded more than 18,000 flights, and knocked out power to an estimated 8.2 million households from New York to as far west as Wisconsin. The situation also caused the New York Stock Exchange to close for two days. It was the longest weather-related closure of the exchange since a blizzard dumped nearly two feet of snow on New York on March 12 and 13, 1888. The equity markets reopened Wednesday. In
Chicago, the markets remained open during normal business hours at the CME Group, but trade reportedly was light early in the week. But by late last week it was business as usual. “Some people were worried about pent up demand but, obviously, we didn’t see that,” Terry Duffy, executive chairman of the CME Group, told Fox Business News. “We’re kind of seeing business as usual.” Crop prices dipped on Friday but remained strong throughout the week. “There was a little lighter trading (immediately after the storm),” said Nick Klump, AgriVisor risk manager specialist. “But I don’t think
(Sandy) had too much impact on the grains.” IHS Global Insight last week predicted Sandy caused about $20 billion in damage on the East Coast and anywhere from $10 billion to $30 billion in lost business. But it’s not expected to impact the overall U.S. economy to nearly the extent of Hurricane Katrina in 2005, which caused a massive runup in the price of fuel and natural gas. In fact, fuel prices at many locations in the U.S. not affected by the storm actually decreased last week. “Unlike Hurricane Isaac earlier this year (and Katrina), Hurricane Sandy impacted an area that is a major consumer
of gasoline rather than a major producer,” the AAA Fuel Gauge Report noted. Gasoline demand last week declined by an estimated 1 million to 2 million barrels per day. Demand also is expected to be the key driver of the crop markets for much of the rest of the year now that harvest is nearly complete. “The story right now is demand is not slowing down for soybeans, and we’re starting to get some worries about South American weather (that could affect soy plantings),” Klump said. “For corn, ethanol production was higher last week but, overall, corn demand still is pretty dismal.” — Daniel Grant
Orr Beef Center plans Wednesday open house The Orr Beef Research Center, Perry, will host an open house Wednesday, starting at noon. Registration is not required. The event will start with a meal, followed by a discussion, demonstrations, and a tour. Discussion topics will include production practices to reduce feed costs, feeding corn silage, and pasture management. The demonstrations will be: calving season tips, sampling forages for testing, and treating cornstalk bales with liquid feed supplements. Biosecurity measures require farmers not to wear clothing, boots, or shoes previously worn in feedlots or pastures unless they have been washed. More information is available by calling Travis Meteer or Nathan Post at 217-2364961.
FarmWeek Page 8 Monday, November 5, 2012
Production
ISA provides tips to improve soy yields Nutritionist: Technology can boost Farmers seeking the latest research results Kevin Black, GROWMARK agronomist, and tips to improve soybean yield potential can assisted on the development of the producaccess the information through tion booklet. “There are so many decisions a new soybean checkoff-funded we make between planting and booklet. harvest that can affect soybean The Illinois Soybean Associa‘The booklet is a yields,” said Ross Prough, a soytion (ISA) and Illinois State Uniu s e f u l t o o l t o bean grower from Greenfield versity’s Ag Department partnered on the project, which was guide decisions and ISA’s vice chairman for “The booklet is a useful led by the United Soybean Board and management yield. tool to guide decisions and through its tech transfer program. practices... .’ management practices at each The program shares results stage of production.” from checkoff-funded producKey production recommention research with U.S. soybean — Ross Prough dations deal with seed selection, farmers. ISA vice chairman for yield planting, pest and disease conThe booklet, titled “Illinois trol, harvest, and storage during Soybean Production Guide – each of the following stages: Systematic Strategies to Increaspreplant, planting, vegetative growth, bloom to ing Yields,” is available online or in paper pod maturity, and maturity. copies. It provides farmers with the latest The booklet is available online at applied research results and tips to improve {ilsoy.org/isa/profitability/}. For a paper copy, yield potential at each stage of soybean develcontact ISA at 309-663-7692. opment.
feed efficiency in livestock industry BY DANIEL GRANT FarmWeek
Livestock producers this year have been forced to maximize every resource to feed their herds to make up for droughtinduced crop and forage losses. In some cases, farmers were not able to source enough feed or cover the high costs of the feed in order to maintain their herds or flocks. “The drought hurt animal agriculture a great deal,” Jim Sullivan, an animal nutritionist with J.E. Sullivan Enterprise, said last week at the Doane ag outlook conference in St. Louis. “There is a lot of liquidation taking place right now. “About 70 percent of the cost of meat and milk produc-
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tion is feed,” he continued. “And it’s about doubled in cost.” Sullivan believes technology could be a vital tool in helping livestock producers avoid a similar feed crisis in the future. “I believe there is an opportunity for plant geneticists to help animal agriculture,” he said. Sullivan this fall surveyed members of the American Feed Industry Association to see what crop improvements would be most beneficial to livestock feeders. The majority of respondents (70 percent) would like to see more protein (a higher level of specific amino acids) and higher energy content in feed. Forty percent requested increased digestible fiber. Production and storability traits in crops also could help livestock producers. Eighty percent of survey respondents said they would like to see increased resistance to mold in crops, 70 percent would prefer faster drying of hay crops, and 60 percent would like to see forages that exhibit faster regrowth after harvest. “We need technology,” said Sullivan, who was raised on a dairy farm near Freeport. “We need to continue to improve the efficiency of feed production around the world.” U.S. livestock numbers are predicted to decline next year due to drought-related liquidation. But, long-term, Sullivan predicted the outlook for livestock production and demand is good. “The outlook for the demand of animal feed is growing,” he said. “World demand for animal protein is increasing.” Animal agriculture consumes roughly 55 percent of corn (including distillers grains) and 94 percent of soybean meal in the U.S., Sullivan added.
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Domestic and global agricultural policy will be featured at the Chicago Farmers Nov. 14 meeting in the Illini Center, 200 S. Wacker Drive, Chicago. The reservation deadline is Nov. 13. Bob Thompson, University of Illinois professor emeritus, will discuss global ag policies and the latest on the farm bill. Registration will start at 11:30 a.m. followed by lunch and the program at noon. The cost for members is $25 in advance or $35 at the door. The cost for non-members is $50. For information or reservations, go online to {chicagofarmers.org} or call 312-3883276.
Page 9 Monday, November 5, 2012 FarmWeek
energy
Will new technology help defuse corn/ethanol debate? BY MARTIN ROSS FarmWeek
As the U.S. Environmental Protection Agency (EPA) struggles toward a decision on 2013 ethanol mandates, biofuels and related industries continue to project reductions in the amount of corn needed to meet ethanol goals. Last week, Novozymes announced the launch of a new biofuels enzyme product, Avantec, which reportedly would enable ethanol producers to generate 2.5 percent more in biofuels from a bushel of corn. Technological advances such as improved starch conversion enzymes and ethanol-specific corn varieties are chipping away at ethanol corn consumption. EPA is expected by Nov. 15 to rule on a request to waive 2013 ethanol use requirements based on concerns about the impact of biofuels demand on feed and food supplies and costs. But reduced per-gallon corn demand also is cru-
Notice of Annual Meeting Illinois Agricultural Association Notice is hereby given that the annual meeting of the members of the Illinois Agricultural Association will be held in the Palmer House Hotel, 17 East Monroe Street, Chicago, Illinois, 60603, on Saturday, December 1, Sunday, December 2, Monday, December 3, and Tuesday, December 4, 2012 with the official meeting of voting delegates convening at 8:00 a.m. on Monday, December 3, for the following purposes: To receive, consider and, if approved, ratify and confirm the reports of the officers and the acts and proceedings of the Board of Directors and officers in furtherance of the matters therein set forth since the last the last annual meeting of the Association. To elect nine (9) members of the Board of Directors to serve for a term of two years. To consider and act upon such proposed amendments to the Articles of Incorporation or to the Bylaws of the Illinois Agricultural Association and upon such policy resolutions as may be properly submitted. For the transaction of such other business as may properly come before the meeting. James M. Jacobs Secretary
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At the same time, the crop development industry continues to focus on increased production efficiency through corn biology. Syngentaâ&#x20AC;&#x2122;s biotech Enogen corn, approved 1 1/2 years ago, includes heightened levels of amylase, an enzyme that accelerates starch breakdown. â&#x20AC;&#x153;It speeds the process up and makes it much more efficient for the ethanol plant,â&#x20AC;? Syngenta Enogen account lead James Harp told Far mWeek. â&#x20AC;&#x153;And thereâ&#x20AC;&#x2122;s no yield drag associated with Enogen â&#x20AC;&#x201D; whateverâ&#x20AC;&#x2122;s happening with regular corn in the field is happening with Enogen.â&#x20AC;? Enogen varieties are grown under contract in cooperation with regional ethanol plants. Monsanto, meanwhile, offers high fermentable corn (HFC) varieties under its Processor Preferred banner. Use of HFC hybrids can improve per-plant corn-to-ethanol conversion by 2 to 4 percent, according to Monsanto.
FarmWeek Page 10 Monday, November 5, 2012
markets
Farm bill key in realizing FTA benefits? BY MARTIN ROSS FarmWeek
New doors are opening in Latin American trade. Congressional farm bill action may determine the extent to which U.S. farmers are allowed to capitalize on those market openings. Under a new U.S.-Panama free trade agreement (FTA) enacted last week, the Central American nation eliminated duties on roughly half of its ag imports from the U.S. That includes high-grade beef, frozen turkeys, crude soybean and corn oil, soybeans, soybean meal, wheat, sorghum, dairy whey, cotton, peanuts, almost all fruit products, and many processed products. Panama’s slated to scrap most remaining tariffs on U.S. ag good within 15 years. Further, new tariff rate quotas (TRQs) provide reduced duties for specified volumes of U.S. standard-grade beef, pork, corn, rice, dairy products, and chicken leg quarters. A U.S.-Colombia FTA will offer similar gains, immediately eliminating duties on wheat,
soybeans, soy meal and flour, high-quality beef, bacon, barley, fruit and vegetable products, peanuts, whey, cotton, and the majority of U.S. processed products. U.S. Grains Council (USGC) Central American consultant Alejandro Gonzalez cites key growth in poultry, pork, and dairy production across his region. Gonzalez recently joined a South American delegation on an Illinois Corn Marketing Board tour of farms and ag distribution/transportation facilities. Ethanol-derived distillers dried grains (DDGs) are joining corn, beans, soy meal, corn gluten meal, and wheat in routine “vessel combinations” ordered by feed buyers across the region, the Costa Rica-based consultant told FarmWeek. Gonzalez sees far greater market gains to be made throughout Latin America, especially through use of federally supported export promotion programs. However, future funding for USDA’s Market Access and Foreign Market Development programs (MAP and FMD) is in
limbo without a new farm bill. MAP and FMD help buyers grasp “the whole picture of how the grain system works,” Gonzalez said. Through program funding, Colombia, Ecuadoran, and Peruvian officials toured an Illinois ethanol plant, a container facility that loads DDGs for export, and the Melvin Price Lock at East Alton after attending the 2012 Export Exchange in Minneapolis. “With the ethanol plants (producing feed ingredients), people need to be aware of what’s going on in the global marketplace,” Gonzalez said. “They’re really eager to see how much DDGs are produced. “And in a year like this, with drought in the U.S., we need to reassure our business partners that U.S. farmers are here and that next year, they’re planning to make a special effort in order to try to produce a big crop. Part of the usefulness of MAP and FMD is to explain how the system works and to help them be more secure about the whole system.” Export programs help
USGC educate foreign customers in DDG nutrition, use, and storage. As a result of USGC efforts, a major Ecuadoran company has purchased its first 3,000 metric tons of DDGs. USGC will offer seminars for Ecuadoran nutritionists and end users prior to its December arrival. Alejandro Jaramillo is logistics manager with Colombian feed supplier and poultry/swine integrator Contegral. Contegral purchases U.S. corn, beans, corn gluten meal and feed, and DDGs, though Jaramillo noted
South American corn and beans currently are cheaper because of the U.S. drought. “In soybeans and soybean meal, you have better protein levels than the Argentinian soybean meal,” he told FarmWeek. “South American corn is harder, so it’s better for the supply chain. But both (U.S. corn and beans) are good. “If we had a normal crop in the United States, a normal crop in South America, and similar prices, I think our point of purchase would be the United States.”
Time cites project The green marine technology behind the Illinois soybean checkoff-funded Velella Mariculture Project has been named to Time magazine’s “50 Best Inventions of 2012” list. Citing growing global demand for Omega 3-rich marine fish and stagnant wild fish harvests, Time highlighted the Hawaiian project as a model for aquaculture practices that pose no discernible environmental impact. The project is featured in Time’s Nov. 12 issue now available on newsstands. The research project raised kampachi, a tropical yellowtail fish, in a single unanchored, submersible net pen tethered to a manned sailing vessel and drifting on deep ocean currents three to 75 miles off Hawaii’s Big Island. Kampachi were fed a “sustainable” commercial diet that replaced significant amounts of fishmeal and fish oil with soy and other alternative ag proteins. No antibiotics, hormones, or pesticides were used throughout the seven-month trial, which concluded with a February 2012 harvest. Kampachi Farms co-CEO Neil Anthony Sims reported the fish showed “phenomenal growth rates and superb fish health,” while their offshore cultivation had no negative impact on water quality, the ocean floor, wild fish, or marine mammals. Times’ recognition “further validates the commitment of the Illinois Soybean Association (ISA) to fund visionary research that develops cutting-edge aquaculture technologies and soybased feed to help grow a sustainable supply of healthy seafood,” said Duane Dahlman, a Marengo soybean farmer and ISA vice chair for aquaculture. Other partners in the Velella Project included the National Oceanic and Atmospheric Administration, the National Science Foundation, Lockheed-Martin, the International Copper Association, and Ocean Farm Technologies. During a recent Soy and Grain Trade Summit in New Orleans, George Chamberlain, technical director and co-owner of Nebraska-based Integrated Aquaculture International, noted marine fisheries “have hit their limits” and investments in wild catch have dropped significantly. At the same time, global income growth continues to feed demand for fish, particularly in Asia, he said. “The only way to grow the seafood supply is through aquaculture,” Chamberlain argued. — Martin Ross
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The Velella Mariculture Project, funded by the Illinois soybean checkoff, raised fish in a submersible pen drifting on deep ocean currents off the Hawaiian coast. Time magazine has cited the project’s potential for sustainable aquaculture production. (Photo by Bryce Groark)
Page 11 Monday, November 5, 2012 FarmWeek
the planet
IFB economist helps Paraguay cultivate diversity BY MARTIN ROSS FarmWeek
Paraguay is the world’s fourth largest soybean exporter. Familiar names such as Archer Daniels Midland dot the landscape. Farms along the road that follows the Parana River offer what Mike Doherty calls a modern “Midwestern feel.” But the Illinois Farm Bureau economist found a different Paraguay off the main drag — a country of rutted roads and
Doherty, a former Peace Corps educator who once worked with Dominican sugar producers through USDA, focused on potential local and export markets for Paraguayan citrus, Yerba mate tea, or passion fruit juice. He met with farmers as a volunteer with the Washington-based Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance. Doherty noted Paraguay is
tin-roofed homes, farmers scrabbling for subsistence, and a farm feel closer to that of the U.S. in the 1940s or 1950s. Doherty hopes to help unify the two Paraguays through crop diversification and “institutional strengthening.” Tapping into IFB’s nearly centuryold cooperative origins, he attempted to show Paraguayan farmers how, collectively, they might grow sustainable markets in oranges or tea. “Paraguay’s the fastestgrowing soybean exporting country, but that’s not what I was there to work on,” he said. “Paraguay has a need to support the other tier of farmers who aren’t part of soybean production. “They have some background in specialty crop production, but they need strengthening. They need to get together and form cooperatives so they can do a better job of marketing and earning income from specialty crops.”
“pretty heavily weighted” toward soybean and beef exports — Brazilian-style farming methods were introduced in the 1960s. Illinois farmers can benefit from their Paraguayan counterparts developing “markets outside the typical commodity markets,” he said. Market development and income improvement someday could translate to increased U.S. ag exports to Paraguay. However, Doherty sees agricultural good will as the most immediate U.S. benefit of building Paraguay’s productive profitability. The Paraguayan government “has a long history of being very open to outside investment,” he noted. U.S. engagement with Brazil has led to joint ventures with and investment opportunities for Midwest growers, and over the past decade, Paraguay has seen rapid economic growth, Doherty said. “What little U.S. presence
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there is in the rural areas is either from Peace Corps volunteers, who generally don’t have a strong ag background, or big ag companies,” he stressed. “Their impression
of America is well-intentioned young college-educated Americans who may not know much about production agriculture or ADM building a big soybean plant.
“They don’t get an opportunity to gain any impression of what the typical American farmer has to offer in the area of cooperative marketing.”
Illinois Farm Bureau economist Mike Doherty, right, enjoys a yerba mate tea break with Osmar Mereles, left, an agronomist formerly involved with the Paraguay Productivo development project; Ever Almada, center, a purchasing manager and fieldman with Frutika, an orange juice processing company; and, standing, Paraguayan farmer Cecilio de los Santos, president of the producer group CITRICOOP.
FarmWeek Page 12 Monday, November 5, 2012
FB IN ACTION
Scott County tour gives ‘adopted’ lawmaker farm experiences BY CHRISTINA NOURIE
State Rep. Art Turner Jr. (D-Chicago) took a jampacked tour of Scott County agriculture last week on his first farm visit. Turner and his guest, Alisha Kulek, spent the morning learning more about agriculture. The Scott County Farm Bureau “adopted” Turner in 2011. Over breakfast, Turner and several Scott County Farm Bureau members discussed issues such as the sales tax exemption on ag inputs, estate tax, gestation stalls, tail docking, locks and dams, and the need for the overtime exemption for agriculture. Turner said he appreciated learning more about these issues and having the opportunity to talk directly with the farmers. Next, the group toured LincolnLand FS, Winchester, where the farmers explained how they use anhydrous ammonia and some of their safety and theft concerns. The group then visited the
Arends-Awe John Deere dealership, Riggston. Turner examined several pieces of machinery and climbed into a tractor cab. He and owner Doug Awe discussed the state’s fiscal climate and challenges faced by small businesses. Turner got experience driving a John Deere tractor on the Charles Powell farm. Turner and Kulek also drove Powell’s ATV and learned about an ATV’s use in farm work. On the farm of Jeff Hurrelbrink, Turner and Hurrelbrink applied anhydrous ammonia to the farmer’s fields. Turner said he was amazed at the amount of technology in farm equipment, especially the GPS and auto-steer system. The Scott County farmers are planning to visit Turner and his district in December when they attend the IFB annual meeting. Christina Nourie is the IFB northeast legislative coordinator. Her email addr ess is cnourie@ilfb.or g.
Wayne Brown, second from left, Scott County Farm Bureau vice president and an employee at Arends-Awe John Deere dealership, explains farm equipment to state Rep. Art Turner Jr. (D-Chicago), third from left, during Turner’s Scott County tour last week. Looking on are Blake Roderick, executive director of Pike and Scott County Farm Bureaus, and Alisha Kulek of Chicago. (Photo by Christina Nourie)
Deadline nearing to apply for new advisory teams Farm Bureau members may submit applications for one of three new issue advisory
teams until Dec. 6. Illinois Farm Bureau is developing Strength With Advisory Teams (SWAT) to surface emerging issues in agriculture, provide a vision for IFB and the agriculture industry, and help guide issues. “Agriculture is changing; the dynamics are changing. These teams will capture the strength of this organization and guide the organization and industry,”
FarmWeekNow.com For more information on the new Strength with Advisory Teams, go to FarmWeekNow.com.
said Mark Gebhards, IFB executive director of governmental affairs and commodities. “The teams will provide a new platform to better investigate and prepare the organization to understand, influence, and adapt to the changing realities in production agriculture, the rural economy, and rural family life,” Gebhards noted. A Conservation and Natural Resources Team will work on issues related to environmental regulations, conservation programs, forestry, concentrated animal feeding operations, permitting, pesticide use, and related topics. A Farming Production and Marketing Team will focus on issues related to crop production, marketing, risk management, trade, technology, farm policy, livestock, equine, local foods, specialty crops, and related sectors. A Local and State Government Team will address rural development, local govern-
ments and economies, elections, education, energy, transportation, and related issues. The three teams will identify issues and provide input to the IFB Board of Directors on issues relating to farmers, production practices, rural life, and other agriculture-related areas. “One of the goals of these teams is to be proactive instead of reactive to those changing dynamics,” Gebhards said. Each team will guide and direct IFB as the members become experts on specific issues, regulations, and legislation on which they focus. Each team will have 12 Farm Bureau members, an IFB board member, and a county Farm Bureau manager who will serve in an advisory capacity. Team members will be appointed to two-year terms. For the initial year only, terms will be staggered. Eighteen members will be selected for one-year terms and 18 for twoyear-terms. The teams will meet four times each year for one-day meetings with the first meeting set for Jan. 31. Applicants not selected for a team may participate in an advisory capacity as indicated by selecting specific issues on the application form. “Individuals who are not selected to serve on a team or just have an interest in some of the topics will still have an opportunity to guide the issues by serving on an ad hoc advisory group,” Gebhards explained. For information, contact your county Farm Bureau, call IFB at 309-557-3984, or go online to {ilfb.org/swat}.
Page 13 Monday, November 5, 2012 FarmWeek
FROM THE COUNTIES
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ROWN — Deadline to order Florida oranges, tangelos, grapefruit, red delicious apples, and pecans is Friday, Nov. 16. Delivery to the Farm Bureau office will be Tuesday, Dec. 11. Call the Farm Bureau office at 217773-2634 to place an order. UREAU — Bureau, Marshall-Putnam, and Stark County Farm Bureaus will host a college open house for agriculture students from 10 to 11:30 a.m. and from 12:30 to 2 p.m. Wednesday, Nov. 14, at the Marshall-Putnam County Farm Bureau office, Henry. All sophomore, junior, and senior students who are interested in pursuing a career in an agricultural field are invited. Call the Farm Bureau office at 815-875-6468 for more information. • Bureau, Henry, Knox, Mercer, and Stark County Farm Bureaus, and the University of Illinois Extension units will host their second fall equine seminar from 6:15 to 8:30 p.m. at Black Hawk East (BHE) Ag Arena. Brenda Matherly, Illinois Farm Bureau assistant director of local government, will discuss the state’s equine industry policy development and legislation. Rachel Rock Robinson will have students represent three hunt seat disciplines. There is no charge for 4-H members, FFA members, and BHE students. Cost for others is $5. Call the Farm Bureau office for more information. • Farm Bureau will sponsor a crop insurance seminar at 7 p.m. Tuesday, Nov. 13, at the Farm Bureau office. John P. Gorman, CliftonLarsonAllen LLP, will discuss crop insurance claims and payments. Alan Davis, Country Financial crop specialist, will introduce trend yield adjustment and highlight 2013 information. Call the Farm Bureau office at 815-875-6468 by Monday, Nov. 12, for reservations or more information. ASALLE — Order forms for Amish cheese, Florida fruit, KD Creek Beefsticks, and CC’s Specialty Foods are available at the Farm Bureau office or on the website {lasallecfb.org}. • Boat and auto storage units are available at the LaSalle County 4-H Fairgrounds. Cost is $10 per foot. Call the Farm Bureau office at 815-433-0371 for more information. EE — Lee, Carroll, Ogle, and Whiteside County Farm Bureaus and Sauk Valley Bank will sponsor a marketing workshop at 7 p.m. Monday, Nov. 19, at the Comfort Inn, Dixon. Steve Johnson, Iowa State University Extension farm management
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Lee County ‘field moms’ relish farm tour BY KAY SHIPMAN FarmWeek
A combine ride and an opportunity to learn how farmers grow corn and soybeans recently provided adventures for Lee County “field moms.” Anita Johnson and Julie Penne, both from Sterling, toured Sheaffer Acres, the Dixon farm of Lee County Farm Bureau President Jim Sheaffer and his son, Kyle. The county Farm Bureau informed the local non-farm women about farming in a manner similar to the field specialist, will be the speaker. Call the Farm Bureau office at 857-3531 or go online to {leecfb@comcast.net} by Monday, Nov. 12, for reservations or more information. IVINGSTON — Farm Bureau, Bank of Pontiac, and the Pontiac First United Methodist Church will collect money for international phone cards and items to send to military personnel for the holidays. Contributions for the phone cards may be sent to: Phone Cards for Troops, Livingston County Farm Bureau, PO Box 410, Pontiac, Ill. 61764. Call the Farm Bureau office at 815-842-1103 or visit the website {livcfb.org} for a listing of items to be sent. Deadline for contributions is Tuesday. ANDOLPH — Randolph and Perry County Farm Bureau Ag in the Classroom coordinators will sponsor a kindergarten through eight grade teacher workshop from 4 to 6 p.m. Wednesday, Nov. 14, at the Farm Bureau office. Teachers will receive continuing professional development units. Call the Farm Bureau office at 618443-4511 or email brandi.brockmeyer@rcfb.org for reservations or more information. ERMILION — Orders and payment for Florida citrus, nuts and snacks, Ludwig Farmstead Creamery cheese gift boxes, Leiding’s Meats Bavarian hams, and honey are due by Monday, Nov. 10. Delivery will be Monday, Dec. 10, to the Farm Bureau office. Call the Farm Bureau office at 217-442-8713 for more information. Order forms are available on the website {vcfb.info}.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.
moms program of Illinois Farm Families. “This farm tour and being able to see the inner workings of a corn and soybean farm was a way to see how farming people live their daily lives,” Johnson reported. The field moms were afforded “hands-on observations that you couldn’t get anywhere but where it happens, on the farm.” she said. Not only did the women ride in a combine, but Johnson added she learned about “machinery that I didn’t even know existed.” In addition to crop production, the field moms and farmers discussed seed development and uses of corn and soybeans. “Mr. Sheaffer was full of information on all these topics and more, and very open to all our questions, providing detailed answers,” Johnson said. “Meeting these far mers and hearing them talk about far ming makes me glad they’re the ones producing our food/prod-
Lee County Farm Bureau President and host farmer Jim Sheaffer, left, explains how grain is stored at Sheaffer Acres to local field moms, Anita Johnson, second from left, and Julie Penne, both of Sterling. Looking on is Sheaffer’s son, Kyle. (Photo by Danelle Burrs, Lee County Farm Bureau manager)
ucts,” Johnson said. “They seem to love their chosen life’s work, and that’s pretty important when producing necessary products
for so many people.” Danelle Burrs, Lee County Farm Bureau manager, contributed to this story.
FarmWeek Page 14 Monday, November 5, 2012
profitability
Milk roars past $20
Proper storage, handling of grease important
The Class III price for milk adjusted to 3.5 percent butterfat for the month of October was $21.02 per hundredweight, $2.02 higher than the previous month. It also marks the first time milk prices have been above $20 in the past 15 months. Milk prices are following their typical strong fall showing. Demand is expected to stay strong as good ole fashioned home cooking and baking will help spur interest in butter and milk in the months to come.
Greases were created because liquid lubricants don’t always remain at the point of application and may need to be replenished, sometimes frequently. Lubricating grease is simply base oil which has Tom Drew been thickened. The thickness in the finished grease comes from a thickening agent. Greases typically contain 70 to 90 percent base oil, which is usually no thicker than crankcase oil. Greases also can contain additives that improve performance and colorants to enhance appearance. The thickener is not soluble in the oil it thickens, but must have some attraction to the oil. When there is a large percentage of thickener, the attraction is strong. As more oil is mixed in, the attractive forces between the thickener and oil decrease. Visible oil that has separated from the grease is known as “bleed.” The loosely held oil is part of the lubricating mechanism in grease. A dry, non-bleeding grease can sometimes be noisy in service. Grease has a tendency to bleed while in storage. The
M A R K E T FA C T S
BY TOM DREW
amount of bleed increases with time and, generally, with temperature. Up to a 5 per-
‘Greases typically contain 70 to 90 percent base oil, which is usually no thicker than crankcase oil. Grease has a tendency to bleed while in storage. The amount of bleed increases with time and, generally, with temperature. Up to a 5 percent bleed rate is considered acceptable.’ cent bleed rate is considered acceptable. The oil can be removed or stirred back into the grease and will not affect its consistency or performance. Contaminants can deteriorate grease performance. If containers are not tightly sealed, contaminants may enter the stored product. Moisture can enter containers that appear to be sealed, rusting the container and changing the product. Air pockets usually are only seen in cartridge tubes and typically develop from storing the tube on its side, but faulty keg or drum pumps can create air pockets in kegs or drums, too. Cartridge tubes should be stored in an upright position. All grease containers should be stored out of the elements and under cover at moderate temperatures. Grease compatibility is a
Range Per Head $32.25-47.00 $50.54-61.00
This Week Last Week 100,963 92,988 *Eastern Corn Belt prices picked up at seller’s farm
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week $78.13 $79.40 $57.82 $58.76
Change -1.27 -0.94
USDA five-state area slaughter cattle price Steers Heifers
(Thursday’s price) (Thursday’s price) Prev. week Change This week 126.22 126.95 -0.73 127.00 126.98 0.02
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 n/a 144.92 n/a
Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 86-195 lbs. for 88.86-115 $/cwt. (wtd. ave. 102.33)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 10-25-12 63.4 9.7 15.5 10-18-12 65.2 16.5 10.4 Last year 49.6 20.9 31.1 Season total 309.3 402.8 143.3 Previous season total 208.0 462.2 226.1 USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Tom Drew is GROWMARK’s lubricant marketing manager. His email address is tdrew@growmark.com.
Farm Service Agency
Weighted Ave. Price $39.01 $58.73
Receipts
greases are not compatible, problems can occur. When incompatible, it is recommended that greases not be mixed while in service. If possible, the piece of equipment should be completely cleaned of the old grease before applying the new grease. If it is not possible to shut down the equipment before changing to the new grease, a running change must be made. The old grease should be flushed from the equipment with the new grease. Your local FS energy specialist can assist you in choosing the proper greases and answer your questions about storage and performance.
USDA
Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.
question that often is raised when one type of grease is replaced by another. If two
FSA BALLOTS MAILED — Ballots for the Farm Service Agency (FSA) county committee elections are being mailed to eligible voters today (Monday). Eligible voters who do not receive a ballot should contact their county FSA office. Voters must complete and return their ballots to their FSA county office by the close of business on Dec. 3. Mailed ballots must be postmarked by midnight Dec. 3. To be eligible, a voter must be of legal voting age and have an interest in a farm or ranch as an individual or an authorized representative of an entity. Both spouses are eligible when property is owned jointly. An individual who is not of legal voting age may vote if he or she supervises and conducts the farming operations on an entire farm. Eligible voters also must participate or cooperate in any FSA program provided by law. NEW REPORTING REQUIREMENTS— Farmers who grow fall-seeded small grains, forage crops, apples, and peaches have new acreage reporting requirements, according to Scherrie Giamanco, executive director for Illinois FSA. By Dec. 15, a 2013 acreage report must be submitted for perennial forage crops of grass, hay, alfalfa, and pasture and fall-seeded wheat,
rye, and barley. Apple and peach growers must submit a 2013 acreage report for those crops by Jan. 15. Those dates also are the same ones to be reported to your crop insurance agent when carrying federal crop insurance. For the 2013 crop year only, late-file fees will not be assessed if acreage is reported by June 30, 2013. Previously, reports for those crops were not due to FSA until later in the spring and summer. This change is part of a national initiative to align acreage reporting dates between FSA and the Risk Management Agency (RMA). All acreage uses must be reported for a farm, including cover crops and crops on non-cropland, such as land on which hay is harvested or grazed grassland. Accurate reporting of the crops’ intended use is important. FSA determines program eligibility based on crops’ intended use, and farmers cannot revise that information after they have reported it. Farmers should contact their local FSA county office if they are uncertain about reporting deadlines, which are are crucial to meet FSA program eligibility requirements. Reports filed after the established deadlines must meet certain requirements to be accepted, and farmers may be charged late fees.
Page 15 Monday, November 5, 2012
PROFITABILITY Corn Strategy
CASH STRATEGIST
Storm an economic red flag? With as fragile of an economy as we currently have, this past week’s events on the Eastern Seaboard could be enough to push economic growth into negative territory again. That’s what happened in 2001 in the wake of the attack on the World Trade Center. In 2001, our economy was still reeling from the dot-com break in the equity markets that began in 2000. Growth had slowed precipitously, initially slipping into negative territory in the first quarter of 2001 before recovering somewhat in the second quarter. The impact of 9/11 on our financial sector was enough to tip growth back into negative territory again in the third quarter. This time around, the impact encompasses a much wider geographic area, and a broader number of businesses, which could undermine gross domestic production easier than it did with 9/11. And to make matters even more difficult, this event comes as the holiday season is set to get under way which could have more impact on the retail and service industries in that part of
the country. And the area includes a significant portion of our population. The area affected by Sandy is said to account for 23 percent of our gross domestic production. Early estimates have suggested the blow from the hurricane could reduce fourth quarter growth by 0.6 of a percent. While that wouldn’t be enough to push activity into negative territory, the risk of activity slipping to negative territory is relatively large. And even though this particular instance didn’t come in the wake of a huge break in the stock market as did 9/11, this one is coming in the midst of other major world economies performing poorly, notably Europe and Japan. But just as the economy took a hit after 9/11, it also rose from the ashes like a phoenix. And this one will, too, maybe even more so. Rebuilding/reconstruction efforts may come quicker, cover a wider geographic area, and potentially involve more small businesses. The grain markets aren’t likely to feel much impact, other than an indirect influence from other markets. But a decline in activity could have negative repercussions on the meat sector, beef in particular, especially with the holiday season getting under way.
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ü2012 crop: December futures remain mired in a sideways trend bounded by the low $7.60s on top and $7.32 on the bottom. There’s a chance December could test $7.05 again, but that’s a worstcase scenario. We still prefer to wait for December futures to trade to $7.70 before making catch-up sales. ü2013 crop: Use rallies to $6.40 on December 2013 futures for catch-up sales. We could use a push to $6.50 to add another increment. vFundamentals: News pointing to a shift in fundamentals continues to be lacking. Export business remains lackluster with competitors Brazil and the Ukraine in particular, still doing most of the business. The ethanol grind improved a little last week, but every few days we hear of another plant being shuttered because of poor margins. Wet weather in Argentina remains troublesome, enough to cause some acreage to be shifted to soybeans. Planting there is 40 percent complete, well behind last year’s 56 percent pace.
Soybean Strategy
ü2012 crop: Soybean prices drifted sideways over the past week, but the complex still has a positive shortterm fundamental structure. Continue to wait for a move back above $16.50 on January futures to make catch-up sales. ü2013 crop: With the short-term trend having turned up, patience should be rewarded. But use rallies above $13.60 on November 2013 futures for catch-up sales. We may add another increment at that level as well. vFundamentals: Soybean disappearance remains robust. For the second consecutive week, export shipments were more than 60 million bushels. The crush margin remains good, indicating the crush pace should remain ahead of last year, too. South American weather will continue to be a key part of the complex. Showers helped moisture conditions a little in northern Brazil, but it’s still uncertain whether the pattern has shift-
ed to the summer rainy season. And there’s not a clear sign yet that Argentina’s wet pattern is coming to an end.
Wheat Strategy
ü2012 crop: Wheat remains stuck in a choppy, sideways pattern. For the trend to turn up, Chicago December futures need to close above $9. Use rallies above $8.80 for catch-up sales. ü2013 crop: Make catchup sales when Chicago July futures trade above $8.80. Check the Hotline frequently; we could add a sale at any time. vFundamentals: Issues
with the wheat crops in Australia and Argentina could tighten the world fundamentals a little more. But the situation is still not as tight as it was two years ago, let alone four to five years ago. The first rating for our new crop was 40 percent good/excellent. That’s even lower than last year’s initial rating of 47 percent. Interestingly, the Kansas rating is about the same, with the states around it worse than last year. The soft red crop in the Corn Belt and the South is better than last year.
FarmWeek Page 16 Monday, November 5, 2012
perspectives
Saving of seeds started plants still grown today
Tree-tacular
Woods not only home of beautiful foliage; superior trees often grow in cemeteries Have you ever attended a reading of Edgar Lee Masters’ poems at Oak Hill Cemetery in Lewistown during the Spoon River Scenic Drive? These poems are epitaphs of dead citizens, delivered by actors portraying the dead themselves. Cemeteries are interesting places to RHONDA FERREE visit. They serve the guest columnist spiritual needs of the living as well as keep alive memories of the dead. Moreover, a stroll through the monuments seems to bring alive the history and culture of those people and their community. Cemeteries are often beautiful natural settings. {Cantonillinois.org} describes Greenwood Cemetery in Canton as a place “encompassing rolling hills, a gentle valley, fields, and natural woodland.” For me cemeteries are also a place to see outstanding trees. There are many reasons why cemeteries offer superior trees. Cemetery trees are not disrupted by power lines, sidewalks, driveways, or other urban features that impact a tree’s growth. Trees are often left alone in a cemetery and allowed to grow to their natural height and spread. For this reason, cemetery trees are often found on big tree registers and some cemeteries also serve as arboretums. A great example is Spring Grove Cemetery and Arboretum in Cincinnati, Ohio. Nineteen state champion trees are found there, including an 82-foot-tall yellow buckeye that is 64 feet wide. Spring Grove Cemetery is so spectacular
that it was a required student field trip when I took the woody ornamentals class at the University of Illinois. Similarly, many trees in Arlington National Cemetery in Washington, D.C., have special meaning. The famous Arlington post oak hangs over John F. Kennedy’s “eternal flame.” Eight thousand trees are found across Arlington’s 652 acres. The oldest is the 300-year-old white “Taft oak” by President Taft’s grave. Nine big trees in Illinois are found in cemeteries. These include a flowering dogwood in Texico, a slippery elm in Lemont, and an eastern white pine in Princeton. The pine is 97 feet tall and 49.3 feet wide. Go to {web.extension.illinois.edu/forestry/ il_big_tree.html} for a complete listing of registered big trees in Illinois. Sometimes trees are simply placed in cemeteries for their special meaning. Yew and cedar suggest eternal life. Cherry represent the Japanese idea of “the perfect death.” Oaks symbolize power or victory. Pines mean immortality, while poplars convey sorrowful memories. Roses signify completion and willows serve as a perpetual mourner. Cemetery trees are special. In the words of Andrea Gibson: “Forests may be gorgeous, but there is nothing more alive than a tree that learns how to grow in a cemetery.” Rhonda Ferree is a horticulture educator with the University of Illinois Extension.
Have you ever wondered where our food came from? I mean, where in the world did green beans, carrots, wheat, and rice originate? And how did plants from all over the world come to be standard fare at our tables? It all started when people went from collecting wild MARI plants to cultiLOEHRLEIN vating them. They eventually began saving their own seeds from year to year. This led to the development of genetic types of crops that evolved under the specific climate, soil, and agricultural practices of a given area. Thus were “landraces” born. This longstanding tradition dates back to the earliest years of agriculture. In the words of one scientist; “Even the earliest farmers were competent biologists who carefully selected plants with characteristics that lived and reproduced in the farmer’s environment and were useful to local consumers.” Landraces are genetically mixed such that they yield well under a variety of environmental conditions. Every farmer or gardener knows just how important that is, given the vagaries of the weather
from one year to the next. In my garden, for example, the last two years were not good ones for tomato production, yet this year was stellar (due in no small part to my ability to irrigate my crop). Each year posed its own weather challenges — a cool spring, a dry July and August, an unusually warm spring and a hot, dry summer. Nowadays heirloom vegetables are gaining in popularity. Heirloom varieties often are favored by home gardeners and market farmers for their colorful variation, compared to the grocery store types, as well as for their flavor. They often came over to America with immigrants a century or so ago. Some people like heirloom vegetables and flowers because they can save their own seeds and get a similar crop the following year. If you want to save your seed each year, check out websites by the International Seed Savers organization or a book such as “Seed to Seed” by Suzanne Ashworth for details. Who knows, maybe you’ll start a new tradition of heirlooms to pass on to your own succeeding generations. Mari Loehrlein is a professor of horticulture and landscaping in the School of Agriculture at Western Illinois University. Her email address is MM-Loehrlein@wiu.ed.
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