Farmweek october 13, 2014

Page 1

Anna-Jonesboro FFA members’ homecoming float sported a Ditch the Rule theme. page 3

Got a craving for a crisp, juicy apple? You’re in luck! Illinois apple harvest proved plentiful. page 4

Your vote directly impacts IFB policy. Vice President David Erickson provides some details. page 12

Monday, October 13, 2014

Three sections Volume 42, No. 41

Harvest progress varies; Officials expect transportation issues across U.S transportation “is not theoreti- gestion that occurred and lack rain remains an issue cal for farmers, but, rather, has of railcar supply created many HARVEST 2014: A BOUNTY OF CHALLENGES

BY DANIEL GRANT FarmWeek

Periodicals: Time Valued

A steady diet of rain showers in some parts of the state continues to slow harvest. Illinois farmers as of the first of last week combined 23 percent of the corn crop (22 percent behind the five-year average), while just 18 percent of beans were in the bin (14 percent behind the average pace). The same trend applies nationwide as just 17 percent of corn and 20 percent of bean harvest was complete in the U.S. last week compared to the average pace of 32 percent and 35 percent, respectively. Farmers typically become more concerned about cornstalk quality the longer harvest drags out. But the quality of soybean stands also could be an issue the longer the pesky weather pattern continues, according to Emerson Nafziger, University of Illinois Extension crop production specialist. “I think (corn) stalk quality is good, generally,” Nafziger told FarmWeek. “The crop standing out there likely will keep standing. “Soybeans are the bigger concern,” he continued. “As they repeatedly get wet and dry, the pods tend to weaken.”

Many farmers in recent weeks parked their combines to allow crops to dry naturally in fields and with hopes of optimal harvest conditions. But those plans could change the later it gets this season, particularly if the recent weather pattern continues. The forecast late last week called for more rain chances over the weekend and early this week, according to Accuweather.com. “We’d like it to be dry” at harvest to avoid soil compaction, Nafziger said. “But more people might have to drive combines (in tacky soil) and make deeper tracks than they’d like. We’ve got to get this crop out at some point.” Nafziger believes grain moisture should be near a point where most farmers can harvest their corn if field conditions allow it. Recent rains shouldn’t be a major issue for corn as most ears are hanging down and thus shed the water. In fact, farmers should harvest fields before the moisture content gets too low, according to Nafziger. “This year with the heavier ears, I think we could lose kernels, especially when it gets too much below 20 percent (moisture),” he said. Statewide, corn harvest last week varied from 59 percent complete in the southwest and 31 percent in central Illinois to just 6 percent complete in the northeast and 12 percent in the west. “If we get a couple weeks of sunny weather, it will move quickly,” Nafziger said. “I don’t see much chance this drags out like 2009 (when a decent portion of harvest spilled into December). We’re much further along with crop development (this year).” The harvest delays also

See Progress, page 2

BY DEANA STROISCH FarmWeek

This year’s potentially record-breaking harvest will tax the nation’s roads and bridges, inland waterways and rails, according to Mike Steenhoek, executive director of the Soy Transportation Coalition. But the problems should be less severe in states like Illinois, he said, which use multiple ways to transport crops. Steenhoek said the Dakotas, Minnesota and Nebraska will face the most trouble because the areas rely solely on freight rail and one rail service provider. “As a result, the supply/demand transportation imbalance will overall have a more punitive effect on agriculture and individual farmers in these regions than other areas of the country,” he said. “It is anticipated many farmers will lose $20,000, $50,000, $100,000 or beyond due to a wider basis resulting from a decline in rail service.” He said this year will prove to be a “case study” of how

a tangible impact on individual profitability.” GROWMARK has been preparing for potential transportation problems for months. And each mode of transportation faces its own challenges as Bill Taft, GROWMARK’s logistics division manager, points out: • Barge: The aging lock and dam system and unexpected shutdowns could affect service and cost. Taft said spot rates for barges represent two to three times the normal rate. “The huge crop that is expected will tax the barge system to keep up as crops move out of the Midwest,” he said. “This also impacts fertilizer still getting into position for fall season.” • Rail: Problems that surfaced last winter continue today. “The industry was not prepared for the surge in demand created by the oil fracking industry,” Taft said. “The con-

service issues throughout the rail industry. Going into fall, the premium for grain cars is near record levels commanding premiums of $1,000 over tariff.” • Trucks: A shortage of qualified drivers and additional safety regulations are forcing many carriers and drivers out of the business. “This is creating capacity issues in many segments of truck transportation,” he said. “One of GROWMARK’s biggest transport concerns last winter was moving propane into position for grain drying and then home heating,” Taft said. “The transportation team rose to the occasion and trucked product in from terminals as far away as Kansas, Mississippi and South Carolina to ensure that our customers’ needs were met. We learned that effective planning and communication are essential in meeting customer needs. See Transportation, page 2

PIE-BOUND PUMPKIN HARVEST ROLLING ALONG

Pumpkin harvesters rolled through a field near Morton. Tom Laatsch, Nestle Food agriculture manager, called yields “tremendous” at 30 tons per acre. Average yields typically range from 23 tons per acre on dry land to 25 tons per acre on irrigated soil. Nestle contracts about 3,800 acres in central Illinois. To find locally grown pumpkins, visit {specialtygrowers.org/illinois-vegetable-growers-association.html}. (Photo by Cyndi Cook)

www.facebook.com/illfarmbureau


Quick Takes

FarmWeek • Page 2 • Monday, October 13, 2014

DAIRY MARGIN PROTECTION PROGRAM SET — Dairy producers can learn about Margin Protection Program details from 10 a.m. to noon Tuesday at the Illinois Corn Growers Association office in Bloomington. University of Illinois Professors Phil Cardoso and John Newton will provide information about the new, voluntary federal program along with Jim Fraley, Illinois Milk Producers Association manager. Dairy producers may attend the workshop free of charge, but should preregister by calling 217-333-4397 or visiting {dairyfocus.illinois.edu}.

WIU SCHOOL OF AG PLANS OPEN HOUSE — Western Illinois University’s (WIU) School of Agriculture welcomes prospective students and their parents to a Fall Open House starting at 9:30 a.m. Oct. 24. Faculty and current students will answer questions and lead tours of the university farm, agriculture-related facilities and the Macomb campus. The free event is open to the public and ends at 2:30 p.m. with a student social. The school will select two participants at random to each receive a $250 scholarship. Those who register at {wiu.edu/cbt/agriculture/registra tion.php} will receive a complimentary meal. Participants should park at the WIU Livestock Center, 2201 Wigwam Hollow Road. A campus map and directions to the Livestock Center are available by visiting {wiu.edu/cbt/agriculture/open house.php}. For more information, call the School of Ag at 309-2981080.

BEGINNING FARMER LOANS EXPANDED — As of Nov. 7, USDA plans to increase the microloan borrowing limit for beginning and family farmers to $50,000. USDA will further simplify lending processes, update required “farming experience” to include other valuable experiences, and expand eligible business entities to reflect changes in the way family farms are owned and operated. The microloan changes will allow beginning, small and mid-sized farmers to access an additional $15,000 in loans using a simplified application process with up to seven years to repay. In addition to farm-related experience, other types of skills may be considered to meet the direct farming experience required for farm loan eligibility, such as operation or management of a nonfarm business, leadership positions while serving in the military or advanced education in an agricultural field.

CAFO CLARIFICATION — Reservations for a Nov. 19 Concentrated Animal Feeding Operations (CAFO) meeting at the DeKalb County Farm Bureau office, Sycamore, are being handled by the county Farm Bureau. Call 815-7566361 for reservations at least a week before the meeting.

(ISSN0197-6680) Vol. 42 No. 41 October 13, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

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STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Margie Fraley (mfraley@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager Richard Verdery (rverdery@ilfb.org) Classified sales coordinator Nan Fannin (nfannin@ilfb.org) Director of News and Communications Michael L. Orso (morso@ilfb.org) Advertising Sales Representatives Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

FILLING UP: Grain industry seeks more storage HARVEST 2014: A BOUNTY OF CHALLENGES

BY KAY SHIPMAN FarmWeek

Illinois may rank No. 1 in licensed commercial grain storage capacity, but the grain industry needs more space for this year’s crop. Despite 1.45 billion bushels of licensed commercial grain storage and similar storage capacity on farms, grain elevator operators applied for 90.268 million bushels of temporary storage and another 1.92 million bushels of emergency storage, Stuart Selinger, chief of the Illinois Department of Agriculture’s warehouse bureau, reported last week. “The quality is quite good. I have not heard of any quality concerns,” Selinger told FarmWeek. Temporary storage structures must include a permanent base, rigid sidewalls, a tarp, hot-spot detectors, and

Transportation Continued from page 1 “To that end, we began preparing this summer by communicating with our members on expected needs, meeting regularly to develop plans for the seasonal peak requirements and finally seeking out additional truck capacity to ensure we can meet our customer needs,” Taft said. “While we don’t expect it to be easy, we are prepared for the challenges we expect from the huge Midwestern grain crop.” American Farm Bureau

aeration fans and ducts. Emergency storage entails “putting grain on the ground,” he noted. However, licensed grain elevators and warehouses remain responsible for the quality of stored grain — no matter where it’s stored, Selinger emphasized. “Producers don’t eat the loss if quality” deteriorates, he added. Selinger urged farmers to use good business practices when delivering and selling grain. They need to be sure they

conduct businesses with a state-licensed grain dealer, or licensed state or federal grain warehouseman who participates in the Illinois Grain Insurance Fund. Be aware some federal grain warehouses do not participate in the state grain insurance fund. Farmers need to be sure all scale tickets contain the appropriate information, such as contract storage or price-later contract, and keep track of all scale tickets. Any future claim would be based on those documents, Selinger said.

Continued from page 1 create complications for wheat growers as they struggle to plant the crop. “Wheat planting is a bit of a concern,” Nafziger said. “A lot will be planted later than we like. But,

overall, the effect (of late planting) is not always too bad.” Farmers in Illinois as of last week planted just 9 percent of winter wheat compared to the five-year average of 21 percent.

Federation recently hosted a conference call with officials from BNSF Railway to address farmer concerns. In a statement, BNSF Agricultural Products Group Vice President John Miller said the company expects “substantial volume improvements” this year, and plans to offer more shuttles and railcars this fall than it did in 2013. He also pointed out that many unknowns remain. “While BNSF is fairly sure there will be a large harvest,

we don’t yet know what volumes will move to which markets and when ... We may see farmers choosing not to move crops, we may see markets swing from wanting grain transportation to not wanting it to wanting it again over a matter of months,” Miller said. “We are much more capable to handle demand this year than last year, and we expect our grain volumes over the next four to six months to increase by as much as 15 percent.”

Farmers can choose between Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC) between Nov. 17 and at least March 31, 2015. “If you purchase crop insurance, producers can pair the insurance with ARC/PLC to really manage their risk,” Graden said. The 2014 farm bill eliminated direct payments and modified the target price program, replacing Counter-Cyclical Payment (CCP) program with PLC. The bill also

acres across program crops based on the actual program crops planted in 2009-12 years. Farmers also can update payment yields to 90 percent of the average yields from 2008-12 or keep their current payment yields at levels used in 2008 farm bill counter-cyclical payments. Updated payment yields are only used to calculate PLC. Both revenue safety net options will use payment yield established in the 2008 farm bill. Online tools developed by three universities, including the University of Illinois, can help farmers project what each program will mean under different scenarios. The tools also will help farmers decide whether it’s worth updating their yield information. Find the tools at {www.fsa.usda. gov/arc-plc}. “We can’t stress it enough: Producers have to have someone assist them looking at the ARC/PLC decision making tool,” Graden said. Illinois Farm Bureau plans to hold webinars and face-toface meetings with farmers this winter.

Progress

FSA offices ready for farm bill changes

BY DEANA STROISCH FarmWeek

Employees at Illinois county Farm Service Agency (FSA) offices can now process changes to payment yields and base acreage. More than 280 employees completed three days of training last week on changes allowed under the 2014 farm bill. About 80 temporary employees statewide have been hired to help. “As Stan Wilson, chief program specialist, mentioned: ‘This is going to be a marathon, not a sprint,’” said Rick Graden, Illinois FSA executive officer. “We’ve got some work to do.” First step: Update payment yields and reallocate base acreage. Deadline: Feb. 27, 2015. Graden suggested farmers have load summary sheets or crop insurance yield information available for each year to prove the amount of corn and soybeans produced. FSA county offices won’t collect the information, but farmers should have it available if they are selected to prove their yields in the future, Graden said.

FarmWeekNow.com

Visit FarmWeekNow.com to hear Rita Frazer’s interview with Illinois FSA Executive Officer Rick Graden.

changed the revenue safety nets, replacing Average Crop Revenue Election (ACRE) with two ARC options — County ARC and Individual Farm ARC. Those who don’t make a decision will automatically be enrolled in PLC. All programs make payments on base acres. A farm’s total base acres cannot be increased, but farmers can keep the current base acres or reallocate base


EPA extends WOTUS comment deadline Flider: NAFTA partners

Page 3 • Monday, October 13, 2014 • FarmWeek

BY DEANA STROISCH FarmWeek

Farmers have more time to submit comments on the proposed rule defining “waters of the U.S.” The Environmental Protection Agency last week extended the comment period by three weeks to Nov. 14, the second extension since the proposal was first released in March. “EPA and the U.S. Army Corps of Engineers have always maintained that having the latest peer-reviewed science is an essential part of determining jurisdiction of the Clean Water Act,” EPA said in a statement. “The Scientific Advisory Board (SAB) will soon complete its peer review of the report on the connectivity of streams and wetlands. To provide the public with the opportunity to comment on the SAB review and in response to requests for additional time to comment on the proposed waters of the U.S. rule, the agencies are extending the public comment period.” Illinois Farm Bureau’s Lauren Lurkins, director of natural and environmental resources,

encourages members to use the extra three weeks to submit more comments against the proposed rule and encourage others in their local communities to do the same. Comments may be submitted for the rule at {www.regulations.gov} by referencing Docket ID No. EPA-HQ-W-2011-0880. Opponents, including Farm Bureau, say the proposed rule expands federal jurisdiction, while EPA maintains the rule merely clarifies which wetlands and streams are considered “waters of the U.S.” The proposed rule states that under the Clean Water Act: • Most seasonal and rain-dependent streams are protected. • Wetlands near rivers and streams are protected. • Other types of waters may be protected, if a case-specific analysis shows that they have a “significant nexus” — either alone or in combination with similarly situated “other waters” — to a traditional navigable water, interstate water or territorial seas.

Anna-Jonesboro FFA builds Ditch the Rule float

discussing ag trade issues

BY KAY SHIPMAN FarmWeek

for farm and foreign agricultural services, and Carlos Vazquez, Mexican minister for agricultural affairs, represented their respective nations. All three nations discussed the importance of consistent inspection programs and their countries’ actions to deal with porcine epidemic diarrhea virus, Flider said.

Shared challenges along with national ag trade differences surfaced during last week’s Tri-National Agricultural Accord in Chicago, Illinois Agriculture Director Bob Flider told FarmWeek. Tri-National Accord drew federal, state and provincial agricultural officials representing the United States, Canada and Mexico. The Illinois Department of Agriculture (IDOA) and the National Association of State Departments of Agriculture (NASDA) hosted the three-day event in Chicago. Tamara Nelsen, Illinois Farm Bureau senior commodities director, reported on transportation infrastructure and raised those issues as a potential future challenge for the North American Free Trade Agreement (NAFTA). Canadian and U.S. representatives shared problems with transporting grain, and representatives of northern states and the Canadians raised railcar issues. Canadian Federal Agriculture Minister Gerry Ritz told delegates his country remains concerned about U.S. Country of Origin Labeling (COOL) legislation and may seek World Trade Organization action if issues aren’t resolved. Michael Scuse, USDA undersecretary

Illinois agriculture and Chicago benefit as the meeting hosts, according to the state ag director. The state and city showcased not only Illinois agricultural production but also food and ag-related industries. For example, delegates visited the Chicago Mercantile Exchange. And the state practiced food diplomacy. Delegates tasted Illinois pork, Illinois wine and Eli’s Cheesecake — and received a goody bag of Illinois ag products, Flider noted.

Described as “the future,” transporting corn stover comes with challenges, according to panelists at the Midwest Energy International Symposium. “Corn stover and switchgrass is in its infancy as far as being able to move it and has a lot of challenges going forward,” said Glenn Johnston, executive vice president of Colorado-based GEVO. Johnston noted that piles of biomass waiting to be processed can become fire hazards. He was one of several panelists participating in the daylong workshop last week in Bettendorf, Iowa. Topics addressed during the workshop, “Building and Expanding Critical Infrastructure,” ranged from infrastructure needs to energy use by the U.S. military. With several commercial plants going online, this year was described as a “banner year” for the cellulosic ethanol industry. Those plants will be dependent on feedstocks, such as corn stover. Dave Cepla, managing direc-

tor of Envergent Technologies, LLC, said encouraging farmers to harvest corn stover comes down to economics. “I think maybe as an industry ... we haven’t done a good job of getting the message out about what this could potentially do for the farmer, which is be a viable, economic alternative to what is currently being done,” he said. Judd Hulting, commodities manager for Patriot Renewable Fuels, said most progressive farmers already leave cornstalks on the ground. “It can easily be collected, baled and brought into a processing facility such as ours or one in Iowa or one in Kansas,” he said. “We think that’s the future.” Jess Hewitt, chairman and CEO of Gulf Hydrocarbon Inc., pointed out that feedstocks typically aren’t dense enough to ship long distances. Shortages of truck drivers and delays on rail and other transportation systems add to the challenges.

Tri-National notes A few facts related to the TriNational Agricultural Accord: • Officials met for the first trilateral accord in Puerto Vallarta in 1992. The annual meeting rotates among the three countries. • Illinois exports $1.5 billion in ag products to Canada, making it the state’s second largest customer. The state sells $1 billion in ag products to Mexico, which ranks as the third biggest ag customer.

Energy symposium addresses infrastructure challenges BY DEANA STROISCH

Anna-Jonesboro FFA members get their homecoming float ready for the school’s parade last week. After talking with Union County Farm Bureau Manager Jeanette Hull, the students’ FFA Advisor Eric Emmons suggested they build the float to educate the community about the EPA’s proposed “waters of the U.S.” rule. (Photo by Jeanette Hull)

The Anna-Jonesboro FFA officers and I were presented with the idea to build a homecoming float by our advisor Eric Emmons after talking to Union County Farm Bureau Manager Jeannette Hull. We were very excited about this idea to support the Illinois Farm Bureau in efforts to help prevent the EPA and Corps of Engineer from passing this “waters of the U.S” law that would be devastating to farmers. We wanted to know what Ditch the Rule consisted of, and what we should put on our homecoming float to help symbolize IFB’s point of view. After doing our homework, we learned that if the law were to pass, it would give the agencies the power to dictate land use decisions and farming

BY MAKAYLA DEWITT

practices. Under the proposed rule, nearly every drop of water in ponds, ditches and even puddles would be regulated by the federal government. By building this float, we wanted to educate the public on the issue and have their support to Ditch the Rule. We support the county Farm Bureau’s efforts to develop a better understanding of water concerns in the United States. We also support programs to educate farmers and the general public of the need to protect water quality and accomplish protection by using the various management methods, such as the use of Best Management Practices (BMPs) for application of agriculture crop protection products, commercial fertilizers and manure to minimize

chances for water contamination. Under the proposed rule, farmers and other landowners would have to apply and wait for a permit to build fences, use pesticides or carry out other common farming practices on land the U.S. EPA considers “waters of the U.S.” During the parade, we handed out 300 Ditch the Rule business cards with resource information on them. We ran out of these cards halfway through the parade, and had people asking what this was and what it meant. It was truly an opportunity to reach out to everyone in Union County and educate them a little about this law. MaKayla Dewitt serves as Anna-Jonesboro FFA president.


FarmWeek • Page 4 • Monday, October 13, 2014

Apple of their

eye

Above, Ramon Vargas operates a cider press. Right, Bernard Lopez, left, and Jesus Prado pick Red Delicious apples at Tanners Orchard near Speer. The orchard boasts 17 apple varieties. Co-owner Craig Tanner said production this year ranks slightly below average. To find a local orchard, visit {urbanext.illinois.edu/ap ples/appleorchards.cfm}. (Photos by Ken Kashian)

Apple lovers find plenty of fruit across Illinois The state’s apple crop offers quantity and variety to satisfy taste buds across Illinois. Overall, growers report sufficient crop to meet customers’ demand. However, Mother Nature played havoc in some regions, especially northern Illinois. “We’ll be back and we’ll rebound,” said Raoul Bergersen, owner of Valley Orchard, Cherry Valley. Here’s a snapshot of the apple season in northern, central and southern Illinois. Northern growers face challenges Bergersen put the winter of 201314 in the record book: “I’ve done this for 36 years and have never seen the wholesale death of apple trees.” On his 20 acres, Bergersen reported the loss of most of his Jonagold trees, all of his Fuji trees and older trees planted on lighter soil. “We went through the orchard and cut the dead branches, and then cut the trunks,” he said. Surviving trees produced a fair

crop, including Red and Yellow Delicious, Rome, Jonathan and some newer varieties, according to Bergersen. “Any kind of farming is a gamble. Sometimes you lose and sometimes you win,” Bergersen said. “Everybody’s lost trees,” said Pat Curran, owner of Curran’s Orchard, Rockford. He attributed part of the loss to the winter, including three nights when temperatures hit 28 degrees below zero. Curran removed 450 to 500 dead trees out of 3,000. Other trees “are going through a small, painful death. We’ll see what happens to them next spring,” he added. The big apple crop of 2013 stressed the trees. Then came a long, hard winter, a localized drought and even a couple of hailstorms. “It’s been a challenging year,” Curran said. Despite the challenges, Curran’s trees produced enough of a crop to meet his customers’ needs, although not enough to offer a you-pick harvest. “The customers come out, and

they understand,” he noted. Central growers saw good conditions Central Illinois growers also weathered a long, cold winter, but Mother Nature didn’t decimate the apple trees. “We had good conditions this year for apples to get large. The trees came through fine,” said Craig Tanner, coowner of Tanners Orchard, Speer. Tanner serves as chairman of the Illinois Specialty Growers Association. While the 2013 crop was huge, Tanner described this year’s crop as slightly less than average. Some varieties, such as Honeycrisp, really benefitted from the cool summer nights, added Jennifer Beaver, Tanner’s sister and the orchard’s co-owner. “It’s the most beautiful crop (of Honeycrisp),” she said. Southern growers find pick of crop Harvest of fall varieties, such as Jonathan and Golden Delicious, started “a little behind schedule” much like the rest of the season, according to Sara Lipe, who co-owns Lipe Orchards, Carbondale, with her sister, Laura.

The summer apple harvest started in late June. “The summer varieties were very good,” Lipe said. “I’ve been pleased with this year’s crop.” Apple harvest “just wrapped up” and went well at Rendleman Orchards, Alto Pass, said Michelle Sirles, one of the family owners. Workers also are finishing the majority of packing apples for wholesale customers, she added. “We didn’t have a completely full crop,” which was a little lighter than usual, Sirles said. However, the orchard produced “a really nice peach crop,” she added. Near Cobden, Flamm Orchards’ crop varied by variety, but “the size of the fruit is big,” according to Mike Flamm, co-owner. He reported the Jonathan trees produced about 40 percent less. “For some reason, the fruit didn’t set well this spring,” Flamm explained. The Red Delicious trees provided a nice crop. “The cool summer helps with their color,” he noted.

Efforts to keep local dollars in Union County include customers of local farms and orchards. This year, the Union County Women in Business launched a “Think, Shop, Buy Locally First” campaign, according Charlotte Clover, a COUNTRY Financial representative. Clover spearheads the group’s campaign with Evelyn Bailey. County residents spent $44 million outside the county, according to a 2012 University of Illinois Extension economic study. This year, the business group urges residents to buy locally if the goods or services are available, Clover said. One farm business feeling the impact is Rendleman Orchards, Alto Pass. Home economics students at the AnnaJonesboro Community High School are learning about buying and preparing produce from the family orchard, said Michelle Sirles, one of the orchard owners.

Clover explained her business group gave a buy locally presentation to teachers along with businesses, clubs and others. One teacher later contacted the group for more information to share with her students, Clover added. “We’ve noticed our retail customers are aware of buying local (produce) and why they should,” Sirles said. Sirles continued the Illinois Department of Agriculture’s campaign to encourage purchases of Illinois products “has really helped us with wholesale and retail markets.” Another economic boost grew out of the family’s participation in Illinois Farm Bureau’s Meet the Buyer activity through which the family met new customers. “That was very worthwhile for us,” she said. For more about the Union County campaign or to see a 25-minute video, visit {http://thinkshopbuylocally. com}. — Kay Shipman

Illinois Herb Association members will conduct the 2014 HerbFest Nov. 8 from 9 a.m. to 3 p.m. at Washington Park Botanical Garden in Springfield. Sessions will include infor mation about strategies for selling herbs, pest control in herbs and windowsill herbs. Several vendors will showcase herbal and gardenrelated products. “The annual HerbFest has moved from its early June time frame to November due to so many herbalists and gardeners being ver y busy in the early summer,” said Deborah NiemannBoehle, Illinois Herb Association

president. “We’re really looking forward to attracting more growers and herbalists due to this schedule change.” Anyone interested in learning more about g rowing or using herbs may attend the event. Registration costs $40 for Illinois Herb Association members and $45 for nonmembers. Preregistration is due Nov. 3 and includes lunch. On-site registration will take place from 8:30 to 9 a.m. the day of the event, but does not guarantee lunch. Those interested in attending or being a vendor can download a registration form at {specialtygrowers. org/illinois-herb-association.html}, or contact Charlene Blary, Illinois Herb Association, at 309-557-2107 or by e-mail at cblary@ilfb.org.

BY KAY SHIPMAN FarmWeek

Farms part of effort to keep dollars in Union County

HerbFest scheduled for November


Propane stocks increase; prices still dependent on weather

Page 5 • Monday, October 13, 2014 • FarmWeek

BY DANIEL GRANT FarmWeek

U.S. propane supplies are up considerably from the same time a year ago. But the market still could be volatile in the months ahead depending on weather-driven

crop drying needs and residential heating demand. “USDA projects another record corn harvest,” which could drain propane supplies to dry the crop, said Stacy MacIntyre, Energy Information Administration energy

Seed supply, quality looks good

Good to excellent crop yields at many locations so far this harvest paint a promising picture for farmers as they prepare for the 2015 planting season in coming months. The seed supply appears robust and quality checks have been good so far this harvest, according to Josh Richey, director of seed operations for GROWMARK Inc. “We’re over halfway done with seed harvest,” Richey said the first week of October just before heavy rains doused much of the state. “The season, overall, was a little cooler than average where we produce much of our seed acres,” he continued. “But we had adequate moisture.” The timely rainfall and good growing conditions helped boost seed crop yields, along with row crop production on farms. Seed corn yields so far this harvest are about 120 percent of planned production, according to Richey. Soybean yields also are bountiful. Josh Richey “We should have ample supply,” Richey said. “And preliminary work with seed quality is looking good.” The big seed crop marks the second consecutive year of ample yields after the 2012 drought. “The seed industry overall scaled back acres from last year after a bumper crop,” Richey said. “It looks like another bumper crop this year.” Farmers shouldn’t take ample supplies for granted, though. Richey recommends farmers place their orders early to ensure a supply of preferred products and to take advantage of early order discounts when available. “Overall, I don’t expect supplies to be limited,” Richey said. “But there could be certain varieties in high demand (and subsequent tight supply). I always recommend farmers get their name on the hybrids they want early.” Meanwhile, seed prices should be “close to expectations” this year, Richey noted. Monsanto recently indicated the significant drop in corn futures this year could keep a lid on seed price increases. Prices for some Monsanto seed could increase by single-digit percentage points for next year, less than the previous target in the 5 to 10 percent range. Some price increases will occur as Monsanto replaces about one-fifth of older seed varieties with new ones. — Daniel Grant

IAITC, Specialty Growers, IDOA awarded USDA block grants

Illinois Agriculture in the Classroom (IAITC), the Illinois Specialty Growers Association and Illinois Department of Agriculture (IDOA) recently were awarded USDA specialty crop block grants. USDA will invest $657,641.84 in 16 Illinois projects. Best known for growing corn and soybeans, Illinois farmers rank No. 1 in pumpkins and horseradish, and in the top 10 for other specialty crops. Farmers plant more than 100,000 acres in specialty crops, which produces nearly $393 million in sales. IAITC will update its Apple Ag Mag for elementary students with a focus on apple production in the state. The Specialty Growers Association will increase training opportunities for growers. A special emphasis will be placed on current

food safety requirements. The Horseradish Growers of Illinois in collaboration with Southern Illinois University, the University of Illinois and the University of Illinois Extension will focus on reducing severe problems of horseradish root discoloration by incorporating new genes into the limited genetic pool. Currently, an Illinois horseradish breeding program focuses on improving future horseradish variety releases, developing and releasing new horseradish varieties, and determining the usefulness of using leaf propagation for rapidly increasing newly selected varieties for commercial production. Project results will be shared with growers at a fall twilight meeting and an annual horseradish conference.

industry analyst. “We’ll see what the weather does and how much (the crop) dries in the field.” Propane inventories at the end of last month ranked 15 percent higher in the Midwest and 18 percent higher in the Gulf compared to the same time last year, MacIntyre noted. That equates to 3.7 million more barrels of propane on hand compared to last year. The total inventory also remains above the five-year average. “There’s a little more (supply) cushion,” entering the crop drying and residential heating seasons, MacIntyre said. But that could change in a hurry as witnessed last year. Propane stocks declined 4.1 million barrels in October 2013, which was the largest draw for the month since 1985. “Last year (propane) inventories in the Midwest were relatively low before harvest,” MacIntyre said. “And, because we had such strong crop drying demand, it drew stocks down considerably. “That set us up with tight supplies for the (2013/14) winter,” she continued. “And then, the really cold weather hit.” Propane prices subsequent-

ly spiked well above $4 per gallon last winter. Wholesale prices came back to earth, to less than $2 per gallon, by the spring. Prices could be pressured in the months to come as USDA predicts U.S. farmers will harvest a bumper corn crop of more than 14 billion bushels. Late maturity of the crop and a rainy fall slowed field drying at many locations. Meanwhile, infrastructure issues and world demand also could weigh on the propane market. A rise in propane exports contributed to the run up in prices last year. U.S. propane exports increased from

171,000 barrels per day in 2012 to 292,000 barrels per day last year. Propane supplies in the Midwest also could be constrained due to recent infrastructure changes, according to MacIntyre. The Cochin Pipeline reversed earlier this year and now carries condensate from the Midwest to Canada. It previously moved propane from Canada to the Midwest. Some of that propane could be replaced by additional supplies from several existing pipelines that move propane north from Conway, Kan., the analyst added.


FarmWeek • Page 6 • Monday, October 13, 2014 Bernie Walsh, Durand, Winnebago County: The on-again, off-again harvest is back on again after a four-day rain delay. We received a 1-inch rain Friday morning (Oct. 3). Soybean harvest is in full swing with a wide range of yield reports from the mid-40s to the high 60s, depending on where you are in the county. Corn moisture is still much higher than average — mid to high 20s for most of it. I think the dryer gas man will be busy this year. Have a good and safe week. Pete Tekampe, Grayslake, Lake County: It was a mild week in Lake County. We had a couple of light showers. Some started cutting beans Wednesday, and I started Thursday. Moisture was 12 percent, but a lot of the spots are green yet. Very tough combining. Haven’t heard of any corn picked yet, but it is drying down. Saw some wheat planted Thursday, but my ground is still a little wet. Take your time and be careful. Leroy Getz, Savanna, Carroll County: After some rain delays, combines were running again on beans Tuesday. Many producers have now finished their soybean harvest. Yields have been ranging from 50 to 75 bushels per acre with most in the 60-bushel range. Very little corn is done yet, but next week we’ll see that change. Moisture levels have dropped to mid to low 20 percent and the calendar is moving on. Enjoy the fall colors, but watch out for farm equipment. Ryan Frieders, Waterman, DeKalb County: Last week was the first full week of harvest in the area. We started with corn and then switched to soybeans. Yields have been average, but not great so far. Corn yields and moisture levels are all over the board, regardless of the planting date or maturity. The low spots are especially poor due to the high amount of rain we had this summer. Soybean yields are also spotty with intense disease pressure, low test weights and tiny seeds. Larry Hummel, Dixon, Lee County: We were able to get back into soybeans Tuesday and have had great harvesting weather since. A lot of fields are finished, and I am estimating at least half of this year’s crop is in the bin. Yields continue to be above average, but not record breaking. Corn harvest is picking up now that kernel moisture has dropped below 27 percent on a portion of the crop. Corn yield reports are good; maybe slightly above average. Corn has had seven days in a row of higher closes on the board of trade. I’m hoping Friday’s USDA report doesn’t wipe all of that away in one fell swoop. Ken Reinhardt, Seaton, Mercer County: Unexpected rain Wednesday night has slowed soybean harvest, which was just starting again after the last rain. My bean plot averaged in the upper 60s with some of the mid-III Group varieties not really ready for harvest. Not much corn has gone into elevators yet as most don’t want drying charges subtracted from the already dismal price. It will be a long harvest with at least one big pile of corn outside. Ron Moore, Roseville, Warren County: We received .2 of an inch of rain last week that stopped harvest for a while. Long lines at the elevators, but they are moving pretty well so far. No early closings. We started to harvest some soybeans before the rain with yields around 50. It was somewhat expected since that field had both sudden death and white mold. Hopefully, the other fields will not be affected the same way. We are about 25 percent finished with harvest. Still a long way to go to the end. Mark Kerber, Chatsworth, Livingston County: Harvest progress is slow so far as rain has kept us out of the fields. Last week was just the start for many. We only got two days in before another .5 of an inch of rain. Fields are saturated, and it’s starting to get very scary as the days get shorter. At least in 2009, soybeans were done before all the mud. The weather forecast indicated a stationery front through Illinois. That doesn’t sound good for more rain. We will see.

Ron Haase, Gilman, Iroquois County: We are waiting for sunshine and dry weather. Some farmers were able to harvest Tuesday and Wednesday if they did not have problems with mud. We received .05 of an inch of rain on Monday and another .3 to .4 of an inch Thursday. Harvest is at a standstill again. These rains all followed the 2.4 to 4 inches we received Oct. 3. Around my area, not much of the crops have been harvested. We will be ready to start once we can enter the fields again. With more rain predicted in the five-day forecast, we are wondering if we will be starting on corn or soybeans first. After the small rally ahead of the USDA report, local prices for Oct. 9 closed at $3.05 for nearby corn and $9.17 for nearby soybeans. Brian Schaumburg, Chenoa, McLean County: Intermittent harvest progress last week has this area 40 percent complete on corn and maybe 25 percent on soybeans. Dodging wet holes is a problem. Corn is dry, running about 16 to 20 percent and still showing exceptional yields. Farm averages are reportedly running from 225 to 265 on corn and 60 to 80s on beans. Basis is still hanging in there. Corn, $3.05, Jan., $3.23 fall ’15, $3.52; soybeans, $8.98, Jan., $9.16, fall ’15, $9.15; wheat, $4.57. Steve Ayers, Champaign, Champaign County: Wow, we missed a rain Thursday so we gained Friday (Oct. 10) and Saturday in the field before the “big one” came in Saturday night. The “big one” was on its way for SundayMonday (Oct. 12-13) with 1 to 3 inches forecast, so we battened down the hatches over the weekend. Our harvest-o-meter is at 30 percent done for both corn and beans. The USDA area harvest-o-meter is 18 percent corn harvested and 19 percent soybeans. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Several machines went to bean fields the last few days with the nice days that the weatherman sent and the fact that the beans were turning rather fast. We received 2.25 inches of rain since last report. The word I have been hearing is good yields, despite the SDS that came in a lot of fields early on. Many cornfields are history with yields still holding right up there. The year 2014 is slipping by fast, but still time to be careful. Tomorrow may not get here and yesterday is past, so make the most of today. Carrie Winkelmann, Tallula, Menard County: We received 2 inches of rain so far in October, and it doesn’t seem like a day goes by without at least a tenth just to keep it muddy. We switched over to beans last week. Yields are down from last year in the small amount we have gotten harvested. We really could use some sunshine. Jimmy Ayers, New City, Sangamon County: We received 2.5 to 4 inches of rain scattered during the week. Corn and bean harvest has been practically nonexistent. We got our combine stuck for the first time this year and had to be towed out. Corn is still 40 to 50 percent complete for the county, and soybeans are probably a little less. It appears the crop is frozen in this state of time; it didn’t mature at all last week. Grain prices are certainly on a roller coaster. Crops are not as good as was anticipated earlier in the year. Be sure to clean mud up as you drag it out onto the road. Farmers have to keep a clean perspective for our residential friends who can become upset and disturbed. Be very safe, and be careful when you are pulling vehicles out as we broke one chain this week and it was a dangerous scenario. Your family and friends need you, and harvest can be complete and safe if we pay attention to what we are doing.

Tom Ritter, Blue Mound, Macon County: It was a wet, soggy week with no major harvesting of corn or beans. We’ve had more than 4 inches of rain and still more rain was forecast for the weekend. Earlier in the week, some harvesting was done, but it was pick-and-choose because of soggy fields. Very few soybeans were cut because of too much moisture. Harvest is somewhere in the range of 50 percent completed on corn and soybeans. A lot of good yields and a lot of crop sitting out there waiting to be picked. The weather is the determining factor, especially on soybeans, as the days grow shorter and the times for harvesting soybeans will be shorter and more drawn out. Todd Easton, Charleston, Coles County: Harvest of any kind has been touch-and-go since the last report due to the rainy pattern that has continued since this month started. Soybean harvest has taken the biggest setback with cutting windows very narrow. Corn picking has progressed at a somewhat better pace, but field conditions have reached the point where we are just “mudding it out.” Moistures have not come down at all from where they were a week before in the high 17 to 19 percent range. The good news is the yields Thursday on our farm set new production records on both corn and beans in the same day, and those can possibly be improved when we get to move along with harvest. The great news is that this same thing is happening at pretty much every other farm in this area and across the state. It is a fun year indeed! Doug Uphoff, Shelbyville, Shelby County: RAIN is the four-letter word here. We picked some corn Monday (Oct. 6) and Wednesday, but we had to quit. Yields are unbelievable. We haven’t cut a field of beans yet under 70 bushels per acre, which is unheard of around here. I’m sure we’ll have some, though, on our fields next to the woods. Moisture levels in corn are coming down. We were down in the mid-17 percent range. Corn yields are anywhere from 185 to 240 bushels per acre. There was some hail southeast of here that did quite a number on some soybeans. I’m not sure how many bushels per acre they lost, but there were beans lying everywhere. We have 850 acres of corn left to pick and 460 acres of beans left to cut. Bins are full, and the elevator is a mess since our outside full-time help quit. Jeff Guilander, Jerseyville, Jersey County: We received more than 7 inches of rain last week. Combines began trying to go midweek, but it was a struggle. Equipment dealerships are staying busy putting tracks on combines in an effort to speed things along. Hope to have more progress to report next week! Dan Meinhart, Montrose, Jasper County: It has been a wet and soggy week. On Oct. 2-3, the area received 2 to 6 inches of rain bringing the rivers out of their banks in some locations. Some farmers were able to return to the fields the last few days where ground conditions permitted. The crops are carrying quite of bit of moisture. Wheat sowing has virtually come to a halt. Temperatures last week were as low as the 30s at night, but most of the days were moderate. It was raining as we wrote this report Friday morning. Showers are in the forecast almost every day for the next week. Dave Hankammer, Millstadt, St. Clair County: Combines slowly returned to the fields last week as ground conditions were favorable. The soil was soft and tacky due to the rainfall received the first weekend of October. Harvest progressed through the week until Thursday during the early morning hours when we received about 1 inch of rain turning fields to mud. Crops harvested in the immediate area are about 50 percent complete. Wheat planting may be a challenge due to the wet conditions and harvest delays. I haven’t observed any planted wheat fields at this time. Local grain bids are corn, $2.66; soybeans; $9.40, wheat, $3.38. Have a good week.


Page 7 • Monday, October 13, 2014 • FarmWeek Rick Corners, Centralia, Jefferson County: Harvest is going to be a long, drawn out affair this year. With it raining every other day, it’s really hard to get anything done. Bean harvest just barely started and corn is not much better. They didn’t want our wheat last year because it was supposed to be contaminated, so with the fields already muddy, heavy rains forecast and the date on the calendar, there may not be any wheat this year! Kevin Raber, Browns, Wabash County: Rain has kept harvest slow the past week. There has been corn shelled, but I don’t think there have been many acres of soybeans cut the last few days. Wet soil has kept most the wheat seed in the bag. The next few days aren’t looking any better for getting any sown.

Dean Shields, Murphysboro, Jackson County: It was raining as I made this report. Harvest has been on and off depending on the rain, mostly off last week. They are predicting 3 to 5 inches in the next five days. If that happens, I will lose some beans to flooding. Corn harvest is on the down swing for most farmers, but there are still a lot of beans to harvest. I saw two farmers sowing wheat last week. The basis for corn and beans is wide at our local elevators. Hope they get better after harvest is over.

Randy Anderson, Galatia, Saline County: Not the best week to cut soybeans down south. We had light sprinkles almost every morning except Wednesday. Yields were about where I thought they would be. The weather forecasters have us in the 5-inch zone for the next week, so maybe they are wrong. Markets might have made a turn, but the basis and DP charges are taking all the gain out of the market. Ken Taake, Ullin, Pulaski County: We managed to have three days of harvest since my last report. We were in the fields Monday through Wednesday until we received .7 of an inch Wednesday night, and it rained again Thursday night. Rain is forecast to continue through Tuesday. Our corn harvest is continuing, and we are about 70 percent finished. We’ve only managed to cut about 100 acres of beans so far. Please take time to have a safe week.

Manage winter annual weeds with fall-applied herbicides

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

The increasing prevalence of fall herbicide applications for control of winter annual weeds may indicate growers are becoming more aware of the benefits these applications provide. Fall-applied herbicides may be the most effective to control a David Powell number of annual and perennial weeds, including some of our hardto-manage, herbicide-resistant weeds. Fields where weeds were managed in the fall are often the most weed-free in the spring; this allows the soil to dry out and warm up more rapidly, and ultimately, permits for earlier spring operations and planting. Good winter annual weed control can also provide additional benefits in relation to insect, disease and rodent populations. Insects, such as black cutwor ms, are often BY DAVID POWELL

less attracted to fields without vegetative growth. It is also known that at least six winter annual weeds are a host for soybean cyst nematode, including purple deadnettle and henbit. Furthermore, without vegetative cover, voles are less likely to invade weed-free fields. When choosing a fall herb i c i d e p r o g r a m , t h e we e d spectrum must be considered. Fo r c o n t r o l o f p e r e n n i a l weeds, such as dandelion, the best time for manag ement would be in the fall. In this case, a combination of glyphosate plus 2,4-D should suffice. This combination will also provide adequate control of many winter annual weeds that have emerged. However, the lack of an adequate residual component will allow for additional weed emergence if the application is not made late in the season. For early fall applications, the use of a residual herbicide is necessary to manage additional weeds that germinate later in the season. Also, the

Listen.

use of a residual herbicide when glyphosate-resistant marestail is present will help provide fall and early spring control. Control of this weed species at germination or as a rosette in the fall is much more effective than spring bur n

down applications after bolting. The potential downside of using a fall residual herbicide is reduced rotational flexibility. Many herbicides are labeled for use in both corn and soybeans for the following season, while some are specific to a single crop. Finally, please remember that fall herbicide applications are not a substitute for spring residual herbicides. Best management practices for control-

David Powell, Ph.D., serves as GROWMARK’s insect and disease technical manager. His email address is dpowell@growmark.com.

During the next few months, corn and vegetable growers will have an opportunity to provide firsthand information about their production practices by participating in the Agricultural Resource Management Survey (ARMS) and the Veg etable Chemical Use Survey. C o n d u c t e d b y U S D A’s National Agricultural Statistics Service (NASS), Illinois data will be collected for field corn, fresh market sweet corn, pumpkins and snap beans for processing. NASS representatives will

conduct in-person interviews with growers between Oct. 1 and Jan. 10 to gather information on their fer tilizer and chemical use, and pest management practices. “These surveys will give corn and vegetable producers an opportunity to explain how they use fer tilizers, ag ricultural chemicals and manage pests responsibly to produce a safe, high quality supply of food and feed,” said Mark Schleusener, NASS Illinois Field Office state statistician. The U.S. Environmental Pro-

tection Agency (EPA) conducts a review of tolerance levels for re-registration of pesticide products. Part of the review includes evaluating USDA’s estimates on agricultural chemical use. Farmer responses will help ensure that any data impacting environmental policies will accurately reflect farm pesticide and fertilizer needs. Results of the Vegetable Chemical Use Survey will be released Aug. 5, while ARMS survey results will be released May 13 on NASS’ website at {nass.usda.gov/results}.

ling summer annual weeds, including glyphosate-resistant waterhemp, rely on spring residuals followed by in-crop applications. For more information on fall herbicide recommendations, contact your local crop specialist.

Vegetable, corn survey under way

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

FarmWeek® Editor & FarmWeekNow.com contributor Chris doesn’t know a better group of people she could work with than farmers. She and her colleagues understand agriculture and the daily challenges farmers face. She strives to keep you informed to strengthen your voice and help improve your bottom line. Chris has been an agriculture journalist for 29 years, including a 28-year stint at The Pantagraph in Bloomington.

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Newly ‘adopted’ senator takes two-day Randolph County tour FarmWeek • Page 8 • Monday, October 13, 2014

Only a few weeks ago, newly “adopted” state Sen. Melinda Bush, D-Grayslake, hosted Randolph County Farm Bureau leaders for a two-day tour of her suburban district. The farmers invited the senator for a visit to experience agriculture and learn more about rural life — and she recently spent two days visiting Randolph County. Bush’s visit started with lunch in the Luthy family farm cornfields as part of Farm Credit Illinois’ Meals in the Field program, which promotes farm safety. The senator enjoyed visiting with Farm Bureau members and riding in a combine harvesting soybeans. After her combine ride, the senator hopped into a loaded semi and rode to Gateway FS BY CHRISTINA NOURIE

elevator and barge facility on the Kaskaskia River. She learned about grain storage and marketing processes as well as the importance of river and barge transportation to Illinois farmers. The tour group then visited

Marissa’s Prairie State Generating Plant, a coal-fired generating plant with an adjacent coal mine. The plant uses clean-generation technologies to produce electricity to generate 1,600 mega-watts with 95 percent of the output dedicated to eight Midwestern-based public power utilities. The senator met with power plant staff and engineers and asked about coal’s

future as a component of Illinois’ energy portfolio as well as coal’s critical role in local economies to many rural areas of Illinois. The day’s events concluded with a dinner and discussion on the Liefer family farm. More than 40 Randolph County Farm Bureau members participated. Kirk Liefer noted Illinois family farms account for 95 percent of all the state’s farms. The farmers also discussed the use and safety of GMO (genetically modified organism) crops and potential challenges with mandatory labeling. Bush told the farmers about the importance of sharing their message with the public through programs, such as the Adopt-ALegislator® program. The second day started with a tour with Randolph County

CME Group trims trading hours for livestock products

CME Group plans to corral its electronic trading hours for livestock futures this month. Trading hours for CME lean hogs, live cattle and feeder cattle will be reduced on the CME Globex electronic trading platform for the open of trade Oct. 27. Electronic trading hours, as of that date, will be 9:05 a.m. to 4 p.m. on Mondays, 8 a.m. to 4 p.m. Tuesdays through Thursdays and 8 a.m. to 1:55 p.m. on Fridays. Open outcry trading hours for CME livestock futures and options products will not be impacted by the adjustment to CME Globex trading hours. The reduction of electronic trading hours was

prompted by a comprehensive outreach effort by CME Group to producers, commercial customers, traders and other industry participants. “Over the past several months, we have been engaging with a broad cross section of customers and industry participants, including a formal survey in August,” said Tim Andriesen, managing director of agricultural commodities and alternative investments for CME Group. “Based on that feedback, we have determined we should reduce electronic trading hours for our livestock products.” CME Group expects the change will result in deeper and more liquid markets to serve the risk management needs of its customers and the market.

Illinois Farm Bureau President Richard Guebert Jr., right, chats with state Sen. Melinda Bush, D-Grayslake, during her visit to his Randolph County farm. The county Farm Bureau hosted its “adopted” legislator on a two-day tour. (Photo by Christina Nourie)

Board Chairman David Holder. Bush learned about the area’s history and key legislative issues. The tour group traveled to the McCormick family farm, which raises Angus cattle. Bush toured a pasture with Jack McCormick and learned about raising beef cattle. The senator asked several questions related to livestock care and treatment. Ellis Grove and Illinois Farm Bureau President Richard Guebert Jr.’s farm provided the senator with her second combine ride. She helped Guebert combine corn and gained a better understanding of equipment technology as well as key ag issues. Her tour concluded at the Westridge Dairy near Red Bud.

The senator learned about a modern dairy, and the hard work and challenges it requires. The farmers answered the senator’s questions about the dairy industry and helped her learn more about livestock farming. After two successful tours in the Chicago suburbs and Randolph County, the senator and her adopted farmers are considering hosting a farm tour for the senator’s constituents next year. They also look forward to seeing each other in December at the Illinois Farm Bureau Annual Meeting in Chicago. Christina Nourie serves as Illinois Farm Bureau’s northeast legislative coordinator.


Page 9 • Monday, October 13, 2014 • FarmWeek

Jackson County FB tours ‘adopted’ legislator’s district

Jackson County Farm Bureau leaders recently made a long trek from southern Illinois to the western suburbs of Chicago to visit their “adopted” legislator, state Rep. Kathleen Willis, DAddison. Jackson County Farm Bureau and Willis were paired in 2013 through the Illinois Farm Bureau Adopta-Legislator program. She spent a day touring farms in the county last summer. Jackson County Farm Bureau members returned the favor and learned more BY CHRISTINA NOURIE

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UREAU — Farm Bureau will co-host a defensive driving class for members 55 and older from 10 a.m. to 3 p.m. Oct. 28 and 29 at Black Hawk College Community Education Center in Kewanee. Doug Sommer will be the instructor. Cost is $30. Call the Farm Bureau office at 875-6468 to register by Oct. 22. OOK — Farm Bureau will sponsor a college savings seminar for members from 7 to 8:30 p.m. Oct. 22 at the Farm Bureau building. Strategies to maximize federal and state income tax advantages when saving for future college expenses will be discussed. Call the Farm Bureau office at 708-354-3276 for reservations. ULTON — The Women’s Committee will be grilling and selling

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about the representative’s district. They were joined by Cook and DuPage County Farm Bureau members. The tour began with a meeting at the representative’s district office. The representative briefed the farmers on some of the key issues in her district, including high property taxes, foreclosures, gang activity and drug use. She provided her guests with an overview of the district and discussed some of the activities taking place to combat the district’s challenges. The group had lunch at

“Pork Chops for Pink” from 11 a.m. to 5:30 p.m. Friday at the Lewiston County Market. All proceeds will benefit the Susan G. Komen Foundation. ONTGOMERY — Farm Bureau will host a Dakota Access LLC Pipeline informational meeting at 6 p.m. Wednesday at Macoupin County Farm Bureau in Carlinville. Laura Harmon, Illinois Farm Bureau Office of the General Counsel, and Rae Payne, IFB senior director of business and regulatory affairs, will speak about provisions that should be included in easements. Call the Farm Bureau office at 5326171 for more information.

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

Cover crop demonstration set

A cover crop demonstration field tour starts at 9 a.m. Oct. 21 on the Stephen Currier farm, Kewanee. The site is directly behind Johnson Sauk Trail State Park, 1.5 miles east off Illinois 78. Participants will tour three plots drilled this fall with six species, including oats, oilseed radish, crimsom clover, annual rye, cereal rye and hairy vetch. Topics will include cover crop planting, species options, technical advice, funding options and farmer experience.

Tuesday: • FarmWeek: “The Early Word” • Freese-Notis Weather • Doug Tigges, Syngenta: current yields, 2015 prep • Kelli Bassett and Justin Wilkins, Pioneer: harvest results • Michael Taylor, Food and Drug Administration: food safety Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Jim Bower: Bower Trading

• Larry Miller, Illinois Farm Bureau District 17 director: infrastructure tour Thursday: • Tim Maiers, Illinois Pork Producers Association: upcoming roundtable meetings • Charlyn Fargo, registered dietician: raw milk • Peggy Romba, IFB program manager: nurse practitioner program Friday: • Bob Beck, WinField: field conditions • Ivan Dozier, Natural Resources Conservation Service • Brian Fehn, StraightLine Ag: precision planting

Danny’s Café, a well-known neighborhood restaurant in Melrose Park, and were joined by Northlake Mayor Jeff Sherwin. The farmers and elected officials discussed some important issues, including genetically modified organisms (GMOs) and food labeling, raw milk usage and Environmental Protection Agency regulations. They traveled to Chicago’s O’Hare airport for a unique tour of the new O’Hare runway and learned about plans for an additional runway to be finalized next year. During their private tour, the group went to the airfield to watch planes depart and land. They toured the airport’s cargo area and received an overview of airport operations and safety measures that occur daily. Next, they stopped at the Dr. Pepper Snapple bottling facility in Northlake and toured the 1 million-squarefoot warehouse and production facility. The farmers were amazed at the technology and

Jackson County Farm Bureau leaders join their “adopted” legislator state Rep. Kathleen Willis, D-Addison, fifth from left, and leaders with Cook and DuPage County Farm Bureaus on a tour of Chicago’s O’Hare airfield. Jackson County Farm Bureau board members, left to right, are Jim Benz; Fred Alstat; Larry Dierks, county Farm Bureau president; and Robert Varner. (Photo by Christina Nourie)

mechanicals used to mix and produce, bottle and package numerous brands of soft drinks, teas and other beverages. The Northlake facility employs about 950 people and serves as a key employer in the representative’s district. The farmers thoroughly enjoyed their tour and were pleased the representative selected two very unique places to visit. They returned

home with a much better understanding of her district and the key issues facing people who live there. They value the relationship they have built with the representative and look forward to welcoming her back to Jackson County sometime next year. Christina Nourie serves as IFB northeast legislative coordinator.


FarmWeek • Page 10 • Monday, October 13, 2014

USDA boosts crop yield estimates BY DANIEL GRANT FarmWeek

USDA on Friday raised production estimates for corn and soybeans nationwide and in Illinois. National crop production estimates climbed 80 million bushels for corn to 14.475 billion bushels, and 14 million bushels for beans to 3.927 billion bushels, in USDA’s October crop production report. Both production estimates, if realized, would set new records. National yield estimates also increased from September by 2.5 bushels for corn to 174.2 bushels per acre, and a half bushel for beans to 47.1 bushels per acre. Production estimates would have been higher, but USDA reduced its harvested acreage estimates for corn and soybeans by about 1 percent from its September projections. “The higher yields are not a surprise,” said Dale Durchholz, AgriVisor senior market analyst. “But some of the pie-in-thesky estimates did not come about.” Analysts generally viewed Friday’s report as neutral, despite the production increases. A number of analysts prior to the report expected even larger yield increases. “Big crops get bigger. I’d call that (corn yield estimate of 174.2 bushels) neutral,” Peter Georgantones, analyst with Roy E. Abbot Futures, said during a teleconference hosted by the Minneapolis Grain Exchange. “I think it’s closer to 177.5.” Georgantones also believes the soybean yield estimate was low and could grow in the months ahead. USDA Friday also raised ending stocks of corn 79 million bushels to 2.081 billion bushels, lowered ending stocks of soybeans 25 million bushels to 450 million, and lowered ending stocks of wheat 44 million bushels. In Illinois, USDA projects record yields of 200 bushels per acre for corn and 56 bushels per acre for beans. If realized, Illinois yields would be the highest in the nation for beans and highest nationwide for corn among all major corn-producing states. “It’s just a big crop,” Jack Scoville, market analyst with Price Futures Group, said during a webinar hosted by CME Group. “We know we’re going to have storage issues going forward. There will be a lot of corn on the ground.” Many analysts believe the market currently incentivizes farmers to sell beans and store corn. “At this point, if they (farmers) can find a place to store corn, they will,” Durchholz said. That could pay off as Georgantones believes the corn market possibly reached a bottom in recent weeks.

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$58.35 $48.42 40 lbs. (cash) $83.00-$98.00 $87.17 Receipts

This Week 87,727 ern Corn Belt prices picked up at seller’s farm

Last Week 75,771

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $102.37 $102.46 -0.09 $75.75 $75.82 -0.07

*East-

What’s the big DEF anyway? That’s Diesel Exhaust Fluid (DEF) we’re referring to here. DEF is used to reduce the amount of nitrogen oxide (NOx) that is released into the atmosphere by diesel engines. DEF is used with equipment powered by diesel engines, but not mixed into the diesel fuel. Instead, it is stored in a separate tank and injected into the exhaust Chris Salrin stream of the diesel engine. DEF, with a typical usage rate of 2 to 4 percent of diesel fuel for on-road equipment, and 3 to 5 percent — and at times as high as 7 percent — for off-road equipment, is a highly purified product. It is nontoxic and made up of 32.5 percent urea and 67.5 percent deionized water. Due to the product’s purity, proper handling and storage procedures are very important. DEF storage equipment must be cleaned with deionized

BY CHRIS SALRIN

water, and be free from dirt and dust. DEF storage tanks should be stored inside away from sunlight as heat and UV rays degrade the product and shorten its shelf life. Since DEF is made up of two-thirds water, it will freeze at 12 F. Freezing does not degrade the product, but it obviously cannot be injected into the exhaust stream in its frozen form. Will vehicle tanks freeze? Yes, the tank will freeze but most vehicle designs have a heated line running through the tank to help the product thaw. In addition, most machines have a 70-minute grace period when the DEF is frozen. When handling DEF, it is very important to avoid mixing it with any other product such as tap water, oil, fuel or other liquids. To ensure the purity of DEF during storage, the industry recommends the use of a closed system. A closed system is a term used to describe the method in which the product is transferred from the production facility to the end user.

Type 304 or 316 stainless steel or HDPE poly-containers are required for storage of DEF. These containers are composed of materials that will not react with the DEF or cause it to degrade out of specifications. Hoses and pumps are connected with fittings that maintain the product’s purity. During each step of transferring the product, dry-lock couplers are used to eliminate contact with the atmosphere and ensure integrity of the product. While many of the handling practices may seem redundant or extreme, they help avoid improper handling practices that can cause product contamination. Contaminated product can lead to faulty operation and ultimately costly repairs. Your local FS Energy Specialist has the equipment you need as well as convenient bulk, minibulk, drum or packaged containers to meet all your DEF needs. Chris Salrin serves as GROWMARK’s energy sales and marketing director. His email address is csalrin@growmark.com.

“Let’s talk” isn’t just an invitation.

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

Steers Heifers

This week $163.79 $163.94

Prev. week $159.98 $158.00

Change $3.81 $5.94

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states. (Prices $ per hundredweight) Prev. week Change This week $239.35 $236.42 $2.93

Lamb prices Negotiated, wooled and shorn, 100-169 lbs. for 148-173.50 $/cwt. (wtd. ave. 161.97) ®

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 10/02/2014 35.8 23.9 34.8 9/25/2014 25.6 22.3 23.7 Last year 30.6 28.4 25.3 Season total 91.0 350.7 158.5 Previous season total 67.0 526.2 93.6 USDA projected total 1700 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

It’s how we do business. Our experts at FS Agri-Finance believe that having a meaningful conversation with our customers is the best way to help them reach their financial goals. We will show you how you can use financing as a risk management tool to help spread your costs and manage your cash flow. Our experts know the business of agriculture, are focused on what’s ahead and will ensure you’re ready for what’s next.

www.fssystem.com

TM

©2013 GROWMARK, Inc. A14149


Corn Strategy

USDA may have corralled the bear

The big story on the October USDA report is there was no story. And whether you believe it or not, that’s a good thing. Production numbers released by the USDA should finally put to rest the talk about exceptionally large, burdensome crops this year. Production numbers could grow somewhat yet, but the possibility of seeing a corn crop close to 15 billion bushels and a soybean crop at 4 billion bushels has become extremely small. There’s probably a better chance the final production estimates could be a little smaller than those in the October crop production report. USDA yield forecasts should put to rest some of the exceptional forecasts the trade has thrown around in recent weeks. For corn, the ear count won’t change much going forward. And with 53 percent of the crop mature and another 39 percent in dent stage, USDA should be relatively close with its ear weights. In 2009, ear weights and yield forecasts were revised down slightly in November and raised again on the final report. But in 2009, the final yield was only one-half bushel higher than the October forecast. For soybeans, the surprising revelation was the pod count. It didn’t rise as much as anticipated, but again, that fits with the pattern noted in 2009. That was another crop with a

generally cool, damp growing season. The yield increased 1.6 bushels from October to the final report. But, in 2009, the pod weight was nowhere near the record levels USDA has used from the beginning of this year. That leads us to believe any yield improvement will be limited, if there is much at all. And like corn, with 35 percent of the crop mature when enumerators collected data for this report, we believe USDA should have a good grasp on pod weight and yield. It might be increased somewhat, but any increase should be limited. USDA answered part of the uncertainty regarding production in this report with downward revisions for acreage. It reduced the acreage numbers for corn by either side of 750,000. For soybeans, acreages were cut 655,000. Those are less than some of the larger numbers that some in the trade have talked about. But it’s important to remember USDA can make further revisions if it so chooses, if subsequent data from the Farm Service Agency indicates a change is needed. The important message, though, is USDA did make a downward adjustment. Putting the production numbers in focus, along with the supply/demand forecasts from the USDA World Agricultural Outlook Board, it’s looking like we may have seen the most negative supply/demand forecasts we might see this year. Prices will likely face some headwinds until harvest starts to wind down, but once that happens, grain prices should have put lows behind. The extent prices might improve may be debatable, but improve they will.

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ü2013 crop: Last week’s surge in the corn market was the first sign the market may have seen an important low. It will take some time to build a sustained move up, but it will come. If you still have old crop at this point, storing it for the long haul should pay dividends. ü2014 crop: It should pay to store corn commercially given the carry present in futures and normal basis improvement into spring, unless the storage rates available to you are unreasonably high. There’s reason to expect to see $4 cash prices next spring. If you need to price corn by early post-harvest, use a move to $3.57 on December futures to make needed sales. If you move corn at harvest, have the basis locked up. vFundamentals: If anything, the October USDA report should eliminate talk of seeing an exceptionally large crop. At the same time, demand should be as good, if not better than, current expectations. Still, until harvest “gets over the hump,” prices may remain in a choppy, sideways trend.

Page 11 • Monday, October 13, 2014 • FarmWeek Cents per bu.

Soybean Strategy

ü2014 crop: The biggest surprise from the October USDA report was there was no surprise. The absence of a huge jump in yield tends to reinforce the fact there’s little downside price risk. There should be a good postharvest bounce, enough to justify short-term storage. But if you need to price by the end of harvest, use a bounce to $9.70 on November futures. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: Given the latest USDA estimates are a relatively good forecast of the market structure, the trade can start to focus on things other than supply. And those other elements have potentially positive implications. The record soybean and soybean meal export sales indicate large demand for soybeans this fall/winter. If producers aren’t willing sellers, end users will be

forced to bid up to fill their needs. Planting has started in Mato Grosso, Brazil, but there’s still no sign the rainy season has started.

Wheat Strategy

ü2014 crop: Wheat futures are attempting to carve out a bottom now that they’ve turned up out of their late September low. Catch-up sales should be made if the December Chicago contract rebounds to $5.50. Producers able to continue carrying wheat may do so with the goal of resuming sales near $6. ü2015 crop: Better opportunities are likely for 2015 sales. vFundamentals: Weak export sales last week took

the top off of recent gains. With abundant stocks and l ow prices, a stronger dollar is less of an impediment to U.S. exports. Still, dollar strength has caught the trader’s eye. Managed money is trimming back its record net-short and squaring the position, helping the recent rally. The same fundamentals will continue to guide the trade going forward. Surpluses are easing in Russia as strong domestic consumption has priced them out of the market for now. France is our biggest competitor, but quality issues there may provide us a leg up later in the year.


FarmWeek • Page 12 • Monday, October 13, 2014

Tired of political advertisements yet? Don’t let your fr ustration with all the political noise turn into a bad case of voter apathy. This election cycle is extremely important to your family and your business because we are electing officials for county, state and national representation. Local county officials, state and federal legislators develop and pass legislation. We need to know these people and be infor med about their positions. Your vote and those candidates’ positions have a DAVID ERICKSON direct connection to Illinois Far m Bureau policy. Through our annual resolutions process, IFB works with our members to develop policy that speaks to issues of importance to the ag riculture industr y. County Far m Bureaus submit proposed resolutions to be considered by the IFB Resolutions Committee and ultimately the voting delegates at the IFB Annual Meeting. Once adopted, we use these policy positions to affect legislation and/or regulations in Springfield and Washington, D.C. The final piece of this process is having legislators in place who understand and support our positions developed through the resolutions process. That is your job — and mine. We must infor m ourselves with accurate infor mation; we must work to elect qualified individuals; and we must vote and get our neighbors and friends to vote, too. The IFB Board of Directors constantly evaluates specific legislation from the

House and Senate in Springfield and Washington. Key bills are scored based upon the importance of meeting our objectives on a specific issue. This bill evaluation system for ms the basis for deter mining how elected officials perfor med on IFB issues. In other words, did they work with us or did they oppose our positions? Through the Illinois Far m Bureau ACTIVATOR prog ram, ACTIVATOR tr ustees annually evaluate the voting record of elected officials on the prioritized legislation. Ever y Illinois General Assembly member and ever y Illinois U.S. Senator and Illinois member of the U.S. House of Representatives is then evaluated by the ACTIVATOR tr ustees, representing all county Far m Bureaus participating in ACTIVATOR. It is this collection of local tr ustees who makes the decision on Friend of Ag riculture awards and endorsements received by our elected representatives and candidates seeking election. Believe me that the Friend of Agriculture designation and endorsement is actively pursued and highly coveted by candidates. The scoring evaluation system and the ACTIVATOR program are tools that IFB provides to help you make an informed decision, but these programs cannot vote. Voting is your privilege and your responsibility. Be informed on the issues and vote on Nov. 4. P.S. Inform your friends and take them to the polls with you! David Erickson of Altona serves as Illinois Farm Bureau vice president and chairs the IFB Resolutions Committee.

Consider the views from the kids’ table

Recently, I had the opportunity to be a part of a discussion led by Mary Byers with the Illinois Farm Bureau and Michigan Farm Bureau boards of directors. Mary is the author of a book entitled, “Race for Relevance: 5 Radical Changes for Associations.” One item that resonated with me was her reference to how we view our future members. As leaders, we are preparing our organization for the future, but oftentimes, unintentionally, we view our future members from the “kids’ JARED FINEGAN table.” As the collegiate Farm Bureau chapters launched a new year this past month, this concept of “kid’s table” hit home. Each of the collegiate Farm Bureau officer teams did an outstanding job reaching out to students, promoting their chapters, organizing the kickoff event and sealing the deal by recruiting hundreds of new Farm Bureau members. They have outlined activities for the semester that will continue to grow their chapters and promote Farm Bureau. Collegiate Farm Bureau members are our future leaders and decision makers. They are excited to be a part of our organization, and I challenge everyone to embrace their enthusiasm and invite them to the “main tables” in your county Farm Bureaus to prepare our organization for the future. Jared Finegan of Iroquois County chairs the Illinois Farm Bureau Young Leaders Committee. Keep up with the Young Leaders by visiting {www.ilfb.org/get-involved/young-leaders/yl-blog}.

Letter to the editor

EPA rule would increase electricity rates

Editor: I appreciate the strong efforts of the Farm Bureau to stop the EPA rule on “waters of the U.S.,” which would greatly expand federal control over our farmland. Another very bad EPA rule, now in effect without congressional authorization, will double or triple our electric bills over time. This EPA rule mandates a 30 percent reduction in carbon dioxide from coal-fired power plants. Carbon dioxide is not a pollutant. It is a normal component of the air we breathe. Humans and animals produce carbon dioxide (CO2) and plants take in CO2 as part of normal metabolism. The EPA rule will hit coal-fired power plants especially hard. I believe the rule will prevent any new coal-fired plant construction and will close many existing plants. A coal mine in Macoupin County closed within the last year, laying off about 200 well-paid workers. The U.S. Chamber of Commerce has called the EPA rule on power plants the most costly in its history, and estimates the cost at $50 billion per year. A Heritage Foundation study puts the cost of the EPA rule at $1,200 per family per year by 2023. EPA really stands for Eliminate Production Agriculture. We should vote out any politicians who support these EPA rules.

EDWARD RAGSDALE Alton

Letter policy

Would you like to share information or an opinion with Far mWeek readers? Consider submitting a Letter to the Editor. Please limit your letter to 300 words. Include your name, address and phone number. Your phone number will not be published; it will simply help us verify letter authorship. Only one letter per writer will be accepted in a 60day period. All letters will be subject to editing. Far mWeek will not publish political endorsements. You can mail letters to: FarmWeek Letters, 1701 Towanda Ave., Bloomington, Ill. 61701, or email CAnderson@ilfb.org.


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