FarmWeek October 15, 2012 by Illinois Farm Bureau

22 DAYS REMAIN UNTIL THE NOV. 6 ELECTION

To help FaRm BuReau members understand how the farmland assessment law works, FarmWeek is publishing a series of detailed articles on the law. ......2

IllInoIS agRIculTuRe in the Classroom has developed posters to be displayed in school cafeterias as a way of introducing students to farmers. .......................8

Monday, October 15, 2012

Two sections Volume 40, No. 42

IFB: RFS2 waiver would be ‘highly ineffective’ BY MARTIN ROSS FarmWeek

After surveying the Illinois ag landscape, energy and corn market dynamics, and the crosssector impacts of ethanol mandates, Illinois Farm Bureau urged federal officials to stay the course with the Renewable Fuel Standard (RFS2). Last Thursday, the U.S. Environmental Protection Agency (EPA) closed public comment on a proposal to waive 2013 nationwide RFS2 ethanol blending requirements. The agency is expected to rule on a waiver request by mid-November.

Read about poultry farmers’ RFS2 desire

— page 5

The request was submitted in August by seven southern/southwestern governors and backed by key livestock groups concerned about the impact of RFS2-driven ethanol demand on 2013 corn availability and prices. However, a new University of Missouri Food and Agricultural Policy Research Institute (FAPRI) analysis questions the need for that concern. FAPRI concluded a full waiver of RFS2 conventional biofuels requirements might reduce corn prices by a mere 0.5 of a percent or 4 cents per bushel in 2012/13. Ethanol production might drop by a meager 1.3 percent in 2012/13, it stated. Added corn available for feed

via a pare-back in RFS2 targets might increase by 0.6 of a percent, FAPRI reported. The study concluded an RFS2 waiver would have no effect on retail beef prices in 2013, and at most would trim 1 cent per pound from retail pork prices. “Given the volatility of 2012 (and other recent years), an RFS2 waiver would seem to represent a rather clumsy policy instrument that would be highly ineffective and unlikely to yield any predictable — let alone meaningful — price relief for livestock producers,” IFB argued in its comments to EPA. Further, AgriVisor commodity analyst Dale Durchholz cited energy market forces that indicate an RFS2 waiver “isn’t going to have a huge impact in the game at this point.” Durchholz maintained ethanol supply and demand “is purely a game of economics” — i.e., the relationship between ethanol and gasoline prices. Ethanol demand will subside now that blenders are switching from summer gas blends used in higher-pollution markets to “winter blends” with reduced

oxygen content, he said. But Durchholz stressed blenders still need ethanol for “octane enhancement” related to reduced-temperature engine performance. “Overall gas consumption

BY DANIEL GRANT FarmWeek

10.7 billion bushels. That size of a corn crop would be the smallest since 2006 while the average yield would be the lowest since 1995. In Illinois, USDA lowered the average corn yield estimate from 110 to just 98 bushels per acre, down 59 bushels from last year. “2012 has been an extremely challenging year for producers and end-users,” Greg Wagner of GWX Ag Advisors said during a webinar hosted last week by the CME Group. However, USDA raised soybean production by 226 million bushels last week to 2.86 billion bushels, while upping its yield estimate by 2.5 bushels to 37.8 bushels per acre. USDA also raised harvested acres by 1 percent. In Illinois, the soybean yield was pegged at 39 bushels per acre, up two bushels from last

“As far as ethanol demand over the next few months, and corn demand as a result, I think an RFS2 waiver is pointless and meaningless. Right now, the economics, to a degree, say, ‘Use ethanol.’”

LAYING TILE

Zachary Sibley last week guided tile into place that was being laid in a field owned by Dave and Melvin Hagenbuch near Prairie Center in LaSalle County. Sibley and his father, Roger, of Utica, also in LaSalle County, work for Fred Esmond, owner of Esmond Drainage, Utica. (Photo by Ken Kashian)

USDA trims corn and raises soy production estimates

USDA’s crop production estimates last week mirrored what many farmers have found in their fields so far this harvest season. Corn yields were devastated

FarmWeekNow.com

Periodicals: Time Valued

seems to be subsiding a little bit with the slower economy,” he said in an RFD RadioFarmWeek interview. “Ethanol economics are poor for some particular plants, which is slowing production in some places.

To listen to an interview with USDA’s Joe Prusacki about the latest crop report, go to FarmWeekNow.com.

by the drought and generally have been disappointing while soybean yields received a boost from late-season rains and in many cases have been a pleasant surprise. USDA last week trimmed the national average corn yield by eight-tenths of a bushel to 122 bushels per acre and projected a total crop of

FarmWeek on the web: FarmWeekNow.com

month but down 8.5 bushels from a year ago. “The production numbers are on the bearish side, but the demand side is where friendliness comes in (to the market),” Randy Martinson, analyst with Progressive Ag, said during a teleconference hosted by the Minneapolis Grain Exchange. USDA last week surprised many traders when it lowered 2012/13 ending stocks by 114 million bushels for corn and 44 million bushels for wheat. USDA also raised soybean exports by 210 million bushels (to 1.265 billion bushels) and raised feed and residual use of wheat by 95 million bushels. “The demand side is very tight. So any increase in production will flow almost automatically into the demand side,” said Jerrod Kitt of Linn Group. “We’ll get rid of beans no matter how many

farmers throw at us.” USDA lowered its seasonaverage price estimates by a dime for corn and 75 cents for beans. The current price estimates are $7.10 to $8.50 per bushel for corn, $14.25 to $16.25 for beans, and $7.65 to $8.55 for wheat. Martinson believes the soybean market put in a bottom, while corn prices could remain range-bound and possibly dip to $6.85 to $7 per bushel. “In my mind, beans never got high enough to ration supply. We’re seeing an increase in demand (which could pressure prices),” he said. “For corn, we did do some demand destruction, so it will be hard to get up to old highs. I think corn will be rangebound.” USDA last week lowered its estimate for corn exports by 100 million bushels.

Illinois Farm Bureau®on the web: www.ilfb.org

FarmWeek Page 2 Monday, October 15, 2012

Quick takes SEDIMENT TO PARK — Sixty barge loads of sediment dredged from the Illinois River at East Peoria are traveling 163 miles to the old U.S. Steel (USX) Chicago South Works site. The 90,000 tons of soil will be used to create a recreational area along the shoreline. The state’s Mud-to-Parks program, administered by the Illinois Department of Natural Resources, removes sediment and opens shipping lanes on the Illinois River and recycles the soil. After a two-day trip up the Illinois River, Chicago Sanitary and Ship Canal, Calumet Sag Channel and Little Calumet River to a Lake Michigan slip, the mud will be off-loaded, trucked to the site, and spread across the slag. After drying, the sediment develops a granular soil structure. In 2004 and 2007, 114,000 tons of Illinois River mud was shipped north and now covers 25 acres at the South Works site. Native grasses and small trees now sprout on former steel mill slag. EGG BOARD OFFERS JINGLE CONTEST — The American Egg Board, based in Park Ridge, is launching a new version of its “incredible edible egg” jingle and a consumer contest via Facebook. The jingle, which promotes health benefits of eating eggs, is 35 years old. People are encouraged to record their own version of the jingle, and the top three videos will receive prizes. Contest information, along with a clip of the original jingle video, is online at {facebook.com/IncredibleEdibleEgg}. MINE OWNER CITED — A Douglas County mine operation allegedly violated air and water pollution regulations, Illinois Attorney General Lisa Madigan announced last week. Alpena Vision Resources LLC, a Michigan company, is licensed by the Illinois Department of Natural Resources’ office of mines and minerals to perform reclamation and carbon recovery activities at the mining site near U.S. 36. The Illinois Environmental Protection Agency issued permits allowing Alpena to discharge mine drainage into a nearby Brushy Fork tributary, but the company was required to meet specific water quality standards. Madigan alleges Alpena allowed coal combustion waste, coal combustion byproduct, and gypsum to fill old slurry ponds. In addition, the company allegedly stockpiled and improperly handled Urbana Champaign Sanitary District sludge, leading to odor and pest problems. The company faces possible civil penalties of $50,000 and $10,000 per day while the violations persist.

(ISSN0197-6680) Vol. 40 No. 42

October 15, 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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STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@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 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

government

Farmland assessments: getting back to the basics BY KAY SHIPMAN FarmWeek

Editor’s note: To help Farm Bureau members understand how the farmland assessment law works, FarmWeek will be publishing a series of detailed articles on the law. Illinois’ far mland assessment law, first passed in the late 1970s with input from Illinois Far m Bureau, was designed to reflect the state of the agricultural economy in both good and bad years. After several amendments, the for mula now deter mines far mland’s value based on its production capability. Under the for mula, the value per acre is calculated for various types of soils based on their capacity to produce crops. Gross income minus costs equals the return-toland value. The return-to-land value is divided by a five-year average of Far m Credit Bank interest rates for far m mortgages. That value is “equalized” by dividing it by three as Illinois far mland is assessed at 33.3 percent of value. However, the law limits increases or decreases to a soil’s assessed value to a maximum of 10 percent from one year to the next. Far mland is reassessed every year so the system reflects the far m economy, however, there is a two-year lag. Therefore, 2012 values are based on five-year average data from 2005 to 2010.

The Illinois Department of Revenue annually calculates a per-acre value for specific soils based on their crop production capability. By May 1 of each year, these certified far mland values are provided to county assessors who apply the figures to the soil types on individual far ms or far mland parcels to determine an assessment. To qualify for a far mland assessment, the law requires the primary use of a property to have been for the production of far m products for the previous two years. Non-far m property values are calculated differently. The state property tax code defines the following land-use classifications: • Cropland — land from which crops are har vested or hay is cut. This includes vineyards, nurseries, and greenhouse crops; • Per manent pasture — any pasture land, except woodland pasture and pasture that qualifies as cropland; • Other far mland — woodland pasture, woodland, including woodlots, timber tracts, and land in a forestry program; and • Wasteland — land that

has no production value to a far m, including grass waterways, streams, and ponds. The land-use classifications are used to calculate property values with permanent pasture, other far mland, and wasteland assessed at lesser values than cropland. Homes and homesites on far mland are assessed at 33.3 percent of fair market value similar to other residential property. Far m building assessments are based on their contributory value to the far ming operation. Illinois’ far mland assessment system has two factors that impact how much assessments increase or decrease. One is a 10 percent limit that allows assessments to move up or down only within that range. Also, the state’s use of five-year averages reduces the impact of any single year and smoothes out the changes. Higher far mland assessments don’t automatically mean a higher tax bill. That depends on what happens to tax rates levied by individual taxing bodies and a landowner’s share of the tax burden.

FSA issuing CRP, DCP payments Scherrie V. Giamanco, state executive director of the USDA Farm Service Agency (FSA) in Illinois announced the state’s FSA office will be issuing 2012 Conservation Reserve Program (CRP) and Direct and Countercyclical Program (DCP) payments throughout October. “FSA will issue the payments in a timely manner as long as all producer eligibility requirements are met,” Giamanco said. FSA Chief Program Specialist Don King said eligible producers should receive payments by month’s end, and urged those who don’t or who have additional questions to contact their county FSA office.

CRP and DCP payments could be affected if producers have not submitted required Adjusted Gross Income (AGI) forms. In addition, farmers who signed up for CRP emergency haying and grazing and did not pay in advance will notice that their annual rental payment was reduced by the acreage that was hayed or grazed. “Producers who were affected by county office consolidations will not experience payment delays,” Giamanco stressed. “All county office payments, regardless of consolidations, will be generated at the same time as long as all other eligibility requirements are met.”

Tuesday: • Ag weather with the Chesapeake meteorology • Bill Blessman, Mason County clerk Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Jim Bower, Bower Trading • Mary Ellen Adcock, vice president of natural foods for the Kroger Co. Thursday: • Jeff Scates, president Illinois Corn Growers • Chris Miller, warning coordination meteorologist for the National Weather Service • Mike Rauch, member of Cook County Farm Bureau Board of Directors Friday: • Sara Wyant, AgriPulse publisher • Philip Nelson, Illinois Farm Bureau president • Alan Jarand, director of RFD Radio

Page 3 Monday, October 15, 2012 FarmWeek

EdUcAtIoN

U of I Energy Farm tests crop mix for bioenergy landscape BY KAY SHIPMAN FarmWeek

The worst drought in decades didn’t level the growing fields on the University of Illinois Energy Farm, but it did raise some crops’ potential as bioenergy sources. Research plots across the 320-acre farm offer a variety of crops that may be suited for certain locales, conditions, and fuels. Researchers emphasized the need for variety during open house presentations last week. The varied impact of this year’s drought proved more than one crop will be needed to provide alternate energy. The farm’s corn yields and prairie plants were impacted by

the drought, but the miscanthus fared better than usual, said Tom Voigt, the university’s principal investigator for feedstock production at the farm. While Indian grass did well in drier conditions, the prairie cordgrass, a wetland species, needed wetter conditions, noted D.K. Lee, U of I crop scientist. “Every land has different conditions. That’s why we need a different-species approach (to bioenergy crops),” Lee said. His efforts are focused on “marginal lands that will not support corn and soybean production.” Lee continued: “I ask farmers, ‘Will you plant miscanthus on land that produces 200bushel corn?’”

“Probably not,” answered a farmer listening to Lee’s presentation. In the woody crops plots, towering black locust trees exhibited rapid regrowth even during the drought. U of I crop scientist Gary Kling reported poplars, willows, and silver maple also grew well, but black locust did the best. Kling is studying 21 different woody crops that could be harvested in 3- or 4-year cycles for biomass. This would be a different type of tree harvest and is pushing the limits of researchers’ knowledge about the plants’ regrowth ability over time. “I’m not sure how long we can keep harvesting and still

Brian Lambert, left, University of Illinois Extension local food systems-small farms specialist, questions U of I crop scientist Gary Kling, right, about the bioenergy potential of the black locust trees being studied on the U of I’s Energy Farm, Urbana. U of I crop science graduate student Rob Miller joined Lambert at the Energy Farm’s open house last week. The men are standing beside one year’s regrowth of black locust trees. The trees had been cut to the ground. (Photo by Kay Shipman)

ILLINI FARM BUREAU

University of Illinois Farm Bureau officers, standing left to right, Liz Harfst, Claire Benjamin, and Bridget Verbeck welcome new collegiate Farm Bureau members to the group’s kick-off meeting in the Illini Union last week. About 130 students attended. More photos and information are online at {facebook.com/UofICollegiateFarmBureau}. (Photo by Mariah Dale-Anderson, IFB youth activities manager)

have them (trees) grow back,” Kling said. Some species, such as black locust, produce suckers from the roots. One day, woody crops may offer bioenergy producers flexi-

bility to rely on different fuel sources if other bioenergy crop yields are reduced because of drought or disease, suggested U of I graduate student Rob Miller.

Pat Brown, University of Illinois sorghum geneticist, examines trial commercial sorghum he is studying as a potential biofuel on the U of I Energy Farm. Sorghum in this plot was irrigated because Brown studied the hybrid for a company considering commercial production. Brown is researching sorghum’s potential as biomass and grain for fuel. (Photo by Kay Shipman)

U of I researcher studying sorghum’s energy potential Sorghum growing on the University of Illinois Energy Farm holds promise as a biofuel crop that also is familiar to farmers, said a U of I researcher. Both tall biomass sorghum and sweet sorghum should be considered as crops that could bridge the gap between corn and perennial grass as biofuel sources, said Pat Brown, a U of I sorghum geneticist. Brown discussed his research at the Energy Farm during last week’s open house. In Brown’s view, sorghum juice holds potential in biofuel production. “If we could convert ethanol plants to press sweet sorghum and have all the sugary juice, they could run on that,” he said. Brown reasoned farmers’ familiarity with corn production would ease their transition to growing sorghum. “You can treat it (sorghum) like a cornfield, use the same equipment to harvest as you would to harvest corn silage,” he said. But farmers would not need to apply as much nitrogen fertilizer on sorghum fields as they do to cornfields, he noted. On the research farm, Brown is studying potential commercial sorghum hybrids for biomass and juice production. As an annual crop, sorghum’s quick growth is an advantage compared to miscanthus, switchgrass, and other perennial crops that take longer to establish. One drawback to harvesting sorghum for biomass is its higher stalk moisture content, about 65 percent at harvest, compared with miscanthus, Brown added. — Kay Shipman

FarmWeek Page 4 Monday, October 15, 2012

Policy

Farm bill power source for future energy needs BY MARTIN ROSS FarmWeek

USDA Senior Energy Adviser Todd Atkinson raises a question critical both to farmers seeking new income sources and consumers seeking expanded domestic energy resources â&#x20AC;&#x201D; â&#x20AC;&#x153;How do you grow a crop that doesnâ&#x20AC;&#x2122;t yet have a market?â&#x20AC;? The 2008 farm bill and

House and Senate ag committees provide answers in the form of the Biomass Crop Assistance Program (BCAP). BCAP, created by the 2008 farm bill, provides financial assistance to help farmers and foresters establish, raise, and deliver biomass energy feedstocks. However, next-generation biofuels face a major bump in the road if Congress

fails to renew now-expired farm bill bioenergy programs. USDAâ&#x20AC;&#x2122;s goal is to develop â&#x20AC;&#x153;non-food, non-feed energy cropsâ&#x20AC;? to meet long-term renewable fuels targets, Atkinson said. University of Illinois ag economist Madhu Khanna told FarmWeek BCAP, along with annual mandates under the federal Renewable Fuel Standard and the federal cellulosic

Economist: Dairy farmers canâ&#x20AC;&#x2122;t survive in the past

Marin Bozic warns farm policies of the past would â&#x20AC;&#x153;wreak havocâ&#x20AC;? on the dairy industry. Even 2008 farm bill policies fail to fully address todayâ&#x20AC;&#x2122;s dairy economics, he maintains. Dairy farmers need a program that recognizes rising costs as well as price volatility, according to Bozic, a University of Minnesota assistant professor in dairy foods marketing economics. Lawmakers have designed that program via a proposed 2012 farm bill awaiting House action, he said. Congressional failure to move a new farm bill or extend now-expired programs could mean January reversion to â&#x20AC;&#x153;permanentâ&#x20AC;? 1949 farm bill provisions, with per-hundredweight price supports in the $30s and â&#x20AC;&#x153;much higher retail prices,â&#x20AC;? Bozic said. Thatâ&#x20AC;&#x2122;s â&#x20AC;&#x153;definitely not appropriate for what weâ&#x20AC;&#x2122;re trying to achieve going forward,â&#x20AC;? he told FarmWeek. Corn and soybean programs continue until August 2013 despite expiration. Dairy programs, including the Milk Income Loss Contract (MILC) safety net, already have expired. â&#x20AC;&#x153;For annually harvested crops, farmers have a regular season,â&#x20AC;? Bozic said. â&#x20AC;&#x153;It may be OK for them to wait for a few months and see what new legislation says. Milk is produced continuously, and right now, people are hurting. They canâ&#x20AC;&#x2122;t wait for a safety net to come next spring.

â&#x20AC;&#x153;Though the milk price is rather high, margins are actually pretty low. The MILC program, one of the support tools people used intensively over the first half of the year, is expired. Weâ&#x20AC;&#x2122;re now in sort of a limbo, where we have no support policy.â&#x20AC;? MILC compensated producers when domestic milk prices fell below a specified threshold. A proposed new Livestock Gross Margin (LGM) program would offer insurancestyle protection against volatility in milk prices and feed costs. Bozic co-authored a newly released examination of LGM benefits. When dairy producers attempt to manage their own risk (costs), they tend to focus largely on the next two to four months rather than taking a longer view, he said. That exposes farmers to â&#x20AC;&#x153;availability riskâ&#x20AC;? â&#x20AC;&#x201D; an inability to lock in more favorable long-term margins. A program like LGM, which helps lock in margins nine to 12 months out, would â&#x20AC;&#x153;remove most of the risk for bad years or even tragic (low-margin) years like 2009,â&#x20AC;? Bozic said. â&#x20AC;&#x153;Pretty much everybody agrees we should align our policy toward the new marketplace, to make the U.S. dairy industry a consistent supplier to global markets,â&#x20AC;? he said. â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t do that if youâ&#x20AC;&#x2122;re relying on price supports vs. margin supports.â&#x20AC;? â&#x20AC;&#x201D; Martin Ross

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biofuels tax credit, are â&#x20AC;&#x153;critical to jumpstarting the industry.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve spent a lot of money on research and demonstration of biofuels technology, economical (biomass) conversion technologies, infrastructure upgrades, a lot of planning, a lot of conferences,â&#x20AC;? Atkinson said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve spent virtually nothing to date on growing the crops weâ&#x20AC;&#x2122;ll need in the quantities weâ&#x20AC;&#x2122;ll need. â&#x20AC;&#x153;It hasnâ&#x20AC;&#x2122;t yet gotten to the point where weâ&#x20AC;&#x2122;ve had to persuade hundreds of farmers to start growing these crops. If we donâ&#x20AC;&#x2122;t do it right, people might swear off growing them for some time.â&#x20AC;? In order to produce bioenergy sources that â&#x20AC;&#x153;wouldnâ&#x20AC;&#x2122;t interrupt other uses of land,â&#x20AC;? Atkinson sees a third of future biomass coming from forests, a third from crop and forest residues, and a third from new energy crops. The ideal options are

drought-tolerant crops â&#x20AC;&#x153;that can grow almost anywhere,â&#x20AC;? but â&#x20AC;&#x153;thereâ&#x20AC;&#x2122;s a fine line between that and invasive species,â&#x20AC;? he said. USDA also faces acute financial challenges in growing new bioenergy crops. Last year, it fielded 40 applications for regional BCAP â&#x20AC;&#x153;project areasâ&#x20AC;? alone, representing $1 billion and 1 million acres. USDA initially was granted as much as necessary for BCAP, but Congress â&#x20AC;&#x153;knocked it down to $500 million, then $400 million, then $100, then $17 million over the course of four years,â&#x20AC;? Atkinson said. Thus, in 2011, USDA was able to fund only nine project areas representing 55,000 acres. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re trying to persuade farmers to enter into five-year contracts to grow a crop that has never been grown before, for a facility that might be constructed,â&#x20AC;? Atkinson pointed out. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been a bit of a challenge.â&#x20AC;?

Young farmer: Grain sorghum yields down but respectable BY DANIEL GRANT FarmWeek

Grain sorghum yields, like most crops this year, were reduced by the drought. But the crop still fared well enough that some farmers in Southern Illinois may consider planting more next year, particularly on lighter soils that remain stressed from the drought. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a water-sipping crop, so we plant it on the most stressed soils weâ&#x20AC;&#x2122;ve got,â&#x20AC;? said Chad Broster, a farmer from Mount Carmel (Wabash County). Grain sorghum, also known as milo, usually yields between 100 and 120 bushels per acre on the Broster family farm. This year he expects about half of that, which still will be much better than corn on Brosterâ&#x20AC;&#x2122;s farm. His corn crop this year averaged between 25 and 30 bushels per acre, except one field that made 140 bushels. â&#x20AC;&#x153;Some of it didnâ&#x20AC;&#x2122;t start heading until it startChad and Ashlie Broster, Mount Carmel, check the ed raining,â&#x20AC;? Broster said. â&#x20AC;&#x153;It maturity of their milo (grain sorghum) crop. They plan to begin harvest around Nov. 1. (Photo courtesy went 63 days without rain.â&#x20AC;? of the IFB audio visual department) Broster and his wife, Ashlie, winners of this yearâ&#x20AC;&#x2122;s Illinois Farm Bureau Young Leader Achievement Award, grew less than 100 acres of milo this season. But that could increase next year. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll probably plant a couple hundred acres next year,â&#x20AC;? Broster said. â&#x20AC;&#x153;Places where the drought could linger next year weâ&#x20AC;&#x2122;ll plant beans or milo.â&#x20AC;? Broster recently was contacted by three different elevator managers who are interested in buying his grain sorghum crop. The price as of last week was around $7.30 per bushel. The Brosterâ&#x20AC;&#x2122;s milo crop probably wonâ&#x20AC;&#x2122;t be ready for harvest until about Nov. 1. Statewide, 38 percent of the sorghum crop was harvested as of last week, which is the same as the five-year average. Last week, 94 percent of the sorghum crop in Illinois was mature compared to the average of 80 percent. Grain sorghum involves much lower input costs to grow than corn, but weed control is a challenge because there are no biotech varieties of sorghum. Broster harvests milo with his bean head set at a height very similar to when he cuts wheat. Illinois farmers this year planted 25,000 acres of grain sorghum, up 5,000 acres from 2011.

Page 5 Monday, October 15, 2012 FarmWeek

issues

Insurance industry goes online for farm bill support BY MARTIN ROSS FarmWeek

As farm bill prospects remain uncertain, the insurance industry is taking its fight for a strong risk management system to the Web. National Crop Insurance Services (NCIS) has announced a new website {supportcropinsurance.org} that will serve as a focal point for groups to show their support for continuation and adequate funding of the federal crop insurance program.

Organizations can sign on to an open letter to Congress that underlines the role of crop insurance in reducing “taxpayer risk exposure” to annual disaster payments, helping farmers mitigate market volatility through hedging, and providing lenders “greater certainty that loans made to producers will be repaid.” Illinois Farm Bureau signed on as a supporting organization last week and plans to alert county Farm Bureaus that may wish to join the effort.

NCIS President Tom Zacharias argues crop insurance has grown “to become the most important tool farmers and ranchers have to manage risk.” “Our soybean farmers in Southern Illinois are not having as good a yield as they normally would expect,” Warren County FarmWeek Cropwatcher Ron Moore said in an RFD-FarmWeek interview last week. “We feel for them, and thank goodness we do have some federal crop insurance that’s going to make up

for some of their income loss. “We just have to continue to have those kinds of risk management tools in the new farm bill. Mother Nature dictates our income levels every year, not necessarily what we do as producers.” Insurers and policyholders nonetheless have had to contend with attacks from activist interests such as the Environmental Working Group. Amid scrutiny of potential droughtrelated insurance payouts and federal premium subsidies,

Pressure to remain on fertilizer prices BY DANIEL GRANT FarmWeek

Farmers who finished harvest and are turning their attention to other fieldwork should consider booking fertilizer soon if it’s on their fall to-do list. Post-harvest demand for fertilizer so far is stronger than expected. The strong demand, combined with logistics issues that have delayed shipments, likely will keep pressure on fertilizer prices into winter, according to Joe Dillier, director of plant food at GROWMARK. “We have the potential to get pretty snug (on the supply side),” Dillier told FarmWeek. “Prices likely will remain pretty steady with the potential to move up some as we go.” Some suppliers have had to wait twice as long to obtain fertilizer due to shipping issues caused by low water levels on the Mississippi River. For instance, a barge that normally carries 1,800 tons of fertilizer currently can transport about 1,400 to 1,500 tons. In some cases, particularly

down river, suppliers are not able to offload barges at some warehouses. “The river is complicating things,” Dillier said. “It’s probably taking twice as long to ship stuff.

FarmWeekNow.com Go to FarmWeekNow.com for the latest update on Illinois fertilizer prices.

“How much that (shipping delays) is felt (on the market) depends on how big demand turns out to be.” Fall demand for anhydrous ammonia, phosphorus, and potassium two months ago was projected to decline anywhere from 40 to 60 percent. Drought-stressed crops, particularly in fields that were mowed or chopped, didn’t pull as many nutrients from the soil and thus those fields won’t require a great deal of nutrient replenishing. But based on activity so far this season, it appears demand may be off only about 20 percent, rather than 40 to 60 percent. “Two months ago everybody was saying we’d have

Chicken farmers push for waiver While a number of ag economists argue suspension of 2013 federal ethanol mandates would have a minimal impact on corn prices, poultry farmers flocked to the campaign seeking to obtain a Renewable Fuel Standard (RFS2) waiver. The National Chicken Council (NCC) last week hand-delivered nearly 10,000 individual comments from chicken farmers and related industries in favor of the waiver. In its formal submission to the Environmental Protection Agency seeking a complete one-year waiver of RFS2 corn ethanol requirements, NCC argued a full waiver would reduce corn prices by more than $2 per bushel. “Today’s (USDA) corn crop report released by USDA verifies that this harvest will mark the lowest production since 2006,” NCC President Mike Brown said last Thursday. “Despite 13 percent less corn than last year to go around, it is irresponsible to divert more than 40 percent of it to use as a second-rate motor fuel,” he said. The group cited last week’s bankruptcy filing by a California poultry company, Zacky Farms, on rising feed prices. According to Brown, it was the eighth company over the last two years “to file for bankruptcy, be sold, or simply close its doors.”

really light fall movement (of fertilizer),” Dillier said. “But we’re seeing good demand so far.” Prices in Illinois as of Oct. 11 averaged $837.50 per ton for anhydrous ammonia, $626.92 for diammonium phosphate, $599.14 for potash, and $563.75 for urea, according to the biweekly Illinois Production Cost report. Prices could increase this fall, but Dillier doesn’t expect

anything similar to the spike seen in 2007-08 when fertilizer prices jumped as much as 50 to 75 percent. He recommended farmers who plan to apply fall fertilizer book it soon. “My recommendation to the farmers is, if you need product, go ahead and get it, especially ammonia and phosphate. You don’t want to be the last guy to call the dealer.”

Cooperatives… Working together to grow. For over 80 years, the FS System of member cooperatives has worked together to improve the profitability of farming. Through professional people, quality products, and exceptional service, we prove that by working together we grow together.

Celebrating Co-op Month.

Country Financial officials have been interviewed by media ranging from FOX News to Chicago Public Broadcasting Service outlet WTTW-TV. In addition to its online effort, NCIS released a new video that focuses on the overall training and role insurance adjusters play in getting crop insurance claims processed efficiently and accurately. Adjusters have processed 137,000-plus claims nationwide so far this year, resulting in more than $2 billion in indemnity payments to farmers. Country has fielded nearly 7,750 production claims so far this fall. Crop insurance also bolsters security in planting decisions, according to Agrivisor commodity analyst Dale Durchholz. Noting growing concerns about “corn-on-corn” production and “record-high levels for wheat insurance guarantees,” he sees the program offering growers confidence in planting double-crop soybeans in wheat stubble.

FarmWeek Page 6 Monday, October 15, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Corn harvest continued nonstop here in Northern Illinois with no rain delays. We received 0.1 of an inch of rain on Wednesday night but it hardly settled the dust. Corn yields have been all over the board, with some fields being very disappointing in the 20- to 40-bushel range. Some of these same hybrids planted a month later are yielding 100 bushels more per acre than the earlyplanted corn. It was simply too hot and too dry during pollination for that early-planted corn. Some fall tillage has started, but we haven’t seen any anhydrous tanks out yet. Pete Tekampe, Grayslake, Lake County: We received 0.4 of an inch of rain on Tuesday night and 0.1 of an inch on Thursday night but it didn’t slow down combining beans. About 80 percent of the beans are cut. Yields are mostly in the mid-20s to mid-30s. Not much corn has been picked yet, but I’ve been hearing moisture levels in the mid-teens to the high 20s. Yields are all over the board. Some wheat has been planted, but it is not in good shape. Ground is very hard and dry. Be careful. Leroy Getz, Savanna, Carroll County: Again, a very dry week with only 0.1 of an inch of rain. That’s all we’ve had in the last four weeks. We are the driest we have been all year long. Creeks are drying up and fall-seeded wheat and rye are just not growing. Soybean harvest is 95 percent complete and corn is at 75 percent and moving fast. Pray for some rain. Joe Zumwalt, Warsaw, Hancock County: Where did it go? Harvest is mostly a memory. Only a few soybean fields remain standing. I believe most producers were pleasantly surprised by their yields. Some wheat has been seeded and several areas have cover crops planted as well. Tillage is in full swing, and the ground is turning black fast. We might actually get to enjoy a bit of fall this year. It will be interesting to watch the markets in the upcoming months as there is very little crop left in farm storage. Next summer could be an interesting time to own corn. Stay safe. Ken Reinhardt, Seaton, Mercer County: It looked Friday like we had a good shot for a couple of inches of rain. But we don’t need any wind storms, because there is a fair amount of corn left to harvest here. I finished soybeans Thursday night. Yields were above average, with 60s pretty common. Fall tillage has been rough on equipment so far in this dry, hard soil. Ron Moore, Roseville, Warren County: We did not receive any rain last week. Rain was forecasted for last weekend. We sure can use more rain. The streams are still dry and tiles are not running. Harvest is almost complete in this area with 90 percent of the corn and beans harvested. Yields continue to be better than expected. Fall fertilization and tillage also is in full swing now. A rain would help soften the ground, as it is very hard right now. Jacob Streitmatter, Princeville, Peoria County: Another great week for harvest across the area. Soybeans have disappeared rapidly. So far this harvest, for the most part, yields have been disappointing on both crops. Varieties have no consistency — one farm makes corn and the next a mile down the road was a total disaster. Tim Green, Wyoming, Stark County: Harvest in Stark County is starting to wrap up. I finished Thursday afternoon. The bean crop was pretty decent and was a little bit above average. The corn crop is pretty disappointing with a lot of variance. Average on different fields was from 30 to 212 bushels per acre. I didn’t have much 30 and didn’t have much 212. I had a lot of corn-on-corn, and the average probably was 60 to 70 bushels below my average. People are starting to do a little fall tillage and planning for next year.

Mark Kerber, Chatsworth, Livingston County: A good, dry, windy week to combine soybeans. Fields are disappearing, but harvest won’t get done before the next rain event. It also was a good week for fall tillage and fertilizing. The October stocks report was friendly. Will we see new contract highs after harvest? Get your seed ordered for next year. Ron Haase, Gilman, Iroquois County: Soybean fields were being harvested at a rapid pace last week. The wind helped dry the plants even with all the moisture present in the mornings. Eighty percent or more of the area soybean fields have been harvested and not many cornfields remain to be harvested. We still have 59 percent of our corn to harvest. We began harvesting corn planted on May 17 or later. The moisture has ranged from 21-26 percent. So far, corn planted later is yielding much better than what we planted in April. We hope that continues. Other field activities include tillage, spreading lime, and spreading dry fertilizer. After release of the latest report from the USDA, the local closing bids for Oct. 11 were: nearby corn, $7.76; fall 2013 corn, $6.13; nearby soybeans, $15.38; fall 2013 soybeans, $13.22. Brian Schaumburg, Chenoa, McLean County: By week’s end, soybeans finally started to cut and a lot of acres were harvested. However, there are still pockets of green beans that will take awhile to mature. While harvest wraps up, cropping decisions for 2013 are in process. Corn-oncorn is a “once burned, twice cautious” conundrum. Economics say plant corn — your heart tugs elsewhere. Corn, $7.66; January, $7.69; fall 2013, $6.22; soybeans, $15.15; January, $15.23; wheat, $8.07. Steve Ayers, Champaign, Champaign County: Harvest–o–meter has our little corner of the world at 86 percent corn harvested and 41 percent soybeans harvested. Bean cutting is slowed by green stems. Our bean yields so far are 51 and 47 bushels per acre; a miracle considering the drought. Moisture ranges from 11 to 14 percent. We had 0.18 of an inch of rain Tuesday night but it didn’t slow harvest. We are expecting potential storms Saturday evening and maybe 0.5 of an inch of rain. Then it looks like temperatures will remain in the mid-40s to mid-60s with occasional rain chances during the week. Wilfred Dittmer, Quincy, Adams County: We received 0.75 of an inch of rain, which came early Friday morning. That rain, plus some cloudy mornings, made for slow combining. But combines have been running since with some beans dry and some stems that look like they are painted green. Yields are favorable and generally better than the corn yields. Soybean harvest is probably 60 to 70 percent completed in the area and the corn harvest is winding down. A small amount of tillage is happening along with some dry fertilizer being spread. Tom Ritter, Blue Mound, Macon County: More than 70 percent of the soybeans have been harvested and harvest is wrapping up fairly quickly. Last week was a good week of harvest with days that you could start fairly early and go fairly late into the evening. The rains over the previous weekend (Oct. 6-7) were instrumental in getting rid of the yellow and green leaves and yellow stems that have been plaguing harvest. There are still some out there, especially on hills or stressed areas, but soybeans overall were combining much better. Yields have been all over the board just like with corn. The better quality of ground, the higher the yields. There have been some excellent yields, but also areas where there was not much vegetative growth, let alone reproductive growth on the lighter soils. Yield in those areas took a major hit. Corn harvest is virtually complete in this area. A lot of tillage is going on and fertilizer applied, but no anhydrous ammonia is being applied at the moment.

Todd Easton, Charleston, Coles County: Finally, we have a busy week of soybean harvest to talk about as we approach the middle of October. Harvesters had good, early starts in the mornings and were able to continue well into the late hours. Even more pleasing are the yields, which are running well above anyone’s expectations with most fields in the 40-plus bushel range and some reaching into the 50s. Otherwise, the usual tillage and nutrient applications are being completed along with wheat planting. So far it looks like there will be several more acres of wheat in this area than usual. Don’t forget, as we enter the home stretch of fall work, stay safe! Jimmy Ayers, New City, Sangamon County: The frost we received a little over a week ago pretty well brought all the beans around, and a lot of them were cut during the week. Corn is nearly done. We have a little bit of May planting we are going to finish up this week. Chiseling, lime spreading, and fertilizer application are the primary activities Soybean yields are a little better than expected on the later beans. We’ve had a high of 72 bushels per acre and a lot of 38. The majority of them are ranging from 48 to 55. It seems like there were some dry areas that had very good beans where the corn was not able to respond. The water-holding capacity of the dirt made a world of difference. The later beans are responding better, more than likely due to the late rains we received. Doug Uphoff, Shelbyville, Shelby County: We received 1.6 inches rain last Friday (Oct. 5) after I turned the report in. We started cutting beans and chiseling the rest of our cornstalks. Bean yields are good and we have a very good price. When was the last time we sold beans for $15 to $17 a bushel? Some beans are out-yielding corn. Makes a guy wish he had planted all beans. Corn, $7.68; beans, $15.34; diesel, $3.93; gas, $3.68; truck fuel, $4.40. Hopefully, the corn price will go up for crop insurance purposes. David Schaal, St. Peter, Fayette County: Soybean harvest was in full swing last week. Most producers were seeing better yields than anticipated. Better soils in places that caught a little extra shower or a little more rain. Beans are doing pretty well. Seed size has been on the large side and quality is pretty good. There has been some soft spots in some fields, so we’re hoping rains hold off so we can continue to cut. Jeff Guilander, Jerseyville, Jersey County: Last week was less than perfect, but it was good enough to let us wrap up harvest. Soybean yields were variable — only this time we were looking at the higher end of potential instead of the low we faced in corn. Depending on the type of bean and the timing of the rains, yields look to average in the 45- to 55-bushel range with some good ground 10 to 12 bushels better than that. With the frost last week, I am sure the beans that are left will be ready in the next week to 10 days and will allow the ups and downs of the 2012 growing season to be put behind us. Dan Meinhart, Montrose, Jasper County: The week was relatively dry and mild. A lot of soybeans have been harvested with satisfactory yields reported. The late-planted beans that were still green were frosted over the weekend (Oct. 6-7). There is quite a bit of May-planted corn to be harvested yet. It is carrying a considerable amount of moisture. The yields are running higher than the March- and April-planted corn. Reports are that many farmers in this area have disked under their entire corn crop. Some wheat is being put into the ground. Fertilizer application is taking place. Kevin Raber, Browns, Wabash County: Bean harvest progressed rapidly last week. The Group IIIs that I cut were a little disappointing, but the Group IVs seem to be yielding better. I think a lot of it is the same as corn. The good soil is yielding; the poorer soils are really taking a beating yield-wise. A lot of wheat was sown last week. Soils conditions aren’t the best, but it’s getting in the ground. We will soon see what type of emergence we have.

Page 7 Monday, October 15, 2012 FarmWeek

CROPWATCHERS Dave Hankammer, Millstadt, St. Clair County: On Friday (Oct. 5), up to 2 plus inches of rain fell at the farm, suspending fieldwork for the weekend. Later in the week, we had a widespread frost, which helped in shutting down any lingering growth in the corn and soybean crops. The status of harvest is a mixed bag. Some farmers are done with corn, while others have switched to soybeans while waiting for May-planted corn to dry down. Progress on soybean harvest has been slow due to the weekend rain and the lingering green stems of the plants. The frost and sunshine will help to expedite harvesting of both crops. Some wheat was planted where soil conditions were suitable for travel and tillage. Local grain bids: corn, $7.16; soybeans, $15.41; wheat, $8.42. Have a safe week.

Dean Shields, Murphysboro, Jackson County: We had a pretty good week harvesting soybeans. We’re still having problems with the green-stemmed beans making them very hard to cut. The beans are dry, but the stems are green. It rained Thursday night, so I don’t know how long that will keep us out. Corn harvest is pretty well over. Yields were a big disappointment this year. My beans continue to out-yield my corn, which is a funny thing. There has been quite a bit of wheat sowing going on and some of it is up and looking pretty decent. Some fall tillage also is going on.

Ken Taake, Ullin, Pulaski County: We made good progress on soybean harvest this past week, and we are now more than half finished with our soybean harvest. Soybean yields are better than corn, but still highly variable. Our yields are running below average, probably by about 15 percent. We had about 0.3 of an inch of rain Thursday night, so we were out of the field Friday. Corn harvest is pretty much finished, with only a few fields left. A few people have started planting wheat. Please take time and be careful this week.

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

At left, Brad Koehler, 47, center, a Hancock County farmer who was paralyzed in an automobile accident last July, discusses harvest with his sisters, left to right, Angie Munson and Karla Froman, along with Steve Meyer, right, Warsaw, at a lunch break during a field work day organized by friends and neighbors. At right, Tom Kraushaar, right, discusses harvest

plans with Tom Bent of Warsaw as corn is loaded into a truck on Koehler’s farm. Kraushaar organized two field work days to harvest Koehler’s 560 acres of corn and beans. About 35 fellow farmers, along with other volunteers, finished the job last week. (Photos by Ken Kashian)

Hancock County farmers harvest crops for neighbor in need BY DANIEL GRANT FarmWeek

Every year, unfortunately, there arises the need for far mers to help an injured or fallen fellow farmer. One instance occurred this year when farmers and others in Hancock County rallied around Brad Koehler, 47, a farmer who was paralyzed in an automobile accident earlier in the year.

The outpouring of support occurred last week when 35 far mers offered their time and resources for the second of two field work days. T he volunteer far mers used 13 combines and at least 9 semi-trucks and four grain carts to har vest Koehler’s 560 acres of corn and soybeans in a matter of days.

The event was organized by Tom Kraushaar of Crop Production Ser vices and Ursa Far mers Cooperative. Vo l u n t e e r s f r o m t h e Methodist Church of Warsaw provided meals for the volunteers. “I’ve known Brad a long time. I’ve done business with his family 30-some years,” Kraushaar said. “It’s amazing how the community

Field day to focus on livestock housing ventilation Modern ventilation systems and air manag ement strategies for livestock housing will be the focus of a free Nov. 7 field day hosted by the University of Illinois Extension and the U of I department of agricultural and biological engineering. The event will run from 9 a.m. to 3 p.m. on the Agricultural Engineering Farm, near the intersection of Race Street and Curtis Road, Urbana. Space is limited and the pre-registration deadline is Nov. 2. Participants will not be close to livestock during the event so routine biosecurity down times should not be necessary for attending farmers. The field day will offer hands-on learning about ventilation system controls, energy efficiency, and biofilters. Matt Robert with the Natural Resources Conser vation Ser vice (NRCS) is the ke y n o t e l u n ch s p e a ke r a n d w i l l d i s c u s s NRCS energy and air quality initiatives. Seminar topics include the pros and cons

of biofilters, balancing ammonia reduction and nitrous oxide production, and reducing energ y costs in ventilated livestock buildings. A specially built enclosed trailer for simulating ventilated livestock housing will be the site for demonstrations. Jeremiah Davis and Jody Purswell, both w i t h M i s s i s s i p p i S t a t e U n i v e r s i t y, w i l l demonstrate lighting and heat lamp efficiency, fan performance, ventilation system controls management, and energy usage. Ventilation manufacturers will have displays and be available to discuss fan, heater, and cooling system controls. Funding for the seminar has been provided by the Illinois Pork Producers Association and USDA-National Institute for Food and Agriculture. Fo r m o r e i n f o r m a t i o n o r t o r e g i s t e r, email Laura Pe pple, livestock Extension specialist, at lpepple2@illinois.edu or call her at 217-244-0083.

draws together when there’s a tragedy like this.” The extraordinary harvest effort actually came together pretty easily, according to Kraushaar. “It didn’t take anything to o r g a n i z e t h i s,” h e s a i d . “Within days when we f o u n d o u t B r a d wo u l d n’t walk again, I had pages of people’s names who wanted to help.”

Craig and Tammy Koehler organized a fund to help update Brad’s house so i t i s h a n d i c a p a c c e s s i b l e. Local carpenters donated their time to do the work, Kraushaar noted. Fo r t h o s e w h o wa n t t o help, donations to the Brad Koehler benefit fund can be sent to the Hill-Dodge B a n k i n g C o. Wa r s aw, I l l . , 62379.

FarmWeek Page 8 Monday, October 15, 2012

IFB IN ACTION

IAITC linking farmers, nutrition, school lunches Free IFB smart ‘app’ tailors info BY KAY SHIPMAN FarmWeek

Illinois Agriculture in the Classroom (IAITC) is teaching students not only about what’s on their plates, but also about the people responsible for that food. “Our goal is to introduce Illinois farmers to school kids while they’re waiting in line in the cafeteria,” said Kevin Daugherty, Illinois Farm Bureau education director. New, colorful “My Illinois Plate” posters will introduce students to farmers who grow specialty crops and grains, raise hogs, and milk cows. The farmers’ stories and photos correspond to recommended meal servings of fruits, vegetables, grain, protein, and dairy. IAITC has created the first state-oriented “my plate” poster, to the best of Daugherty’s knowledge. The IAA Foundation and 1st Farm Credit Services are helping fund the poster. Posters displayed in school cafeterias provide one way to introduce farmers. IFB outreach to school

food service professionals is another. Cynthia Haskins, IFB manager of business development and compliance, participated in a state conference for school food service professionals and worked with food services companies that attended “Meet the Buyer” meetings. County Farm Bureaus soon

will receive posters to distribute to local schools. A poster will be available for every school. Interested educators should contact their county Farm Bureau office. Posters also will be available for printing as a PDF online at {agintheclassroom.org}. Click on “My Illinois Plate.”

Looking for a Convenient Supply of DEF?

A free new “app” from Illinois Farm Bureau enables members to easily follow the weather or markets or speak out on ag policy from the field or the coffee shop. The IFB application is available for Android smartphones, the iPhone, or the iPad. It provides information on local weather and cash crop/livestock bids, futures quotes, IFB news and events, and notices about legislative action requests. It can be customized to provide updated information tailored to individual needs. “You can use your device’s GPS to get local weather and bids,” IFB web services manager Ted Jankowski said. “You can set it to show just grain, just livestock, or both. Or add a ZIP code to make a selective location, such as your home farm, the default.” To install the app, visit either {ilfb.org/app} on the smartphone or iPad or the device’s “app store.” For Android phones, visit the Google Play Store via the Internet and search for “ILFB.” When the search returns the IFB app, click on the entry, then click on the “Install” button to download it to the device. For the iPhone or iPad, visit the App Store and, again, search ILFB. When the search returns the IFB app, click first on the entry and then on the “Install” button to download

it to the device. The App Store will prompt the user to enter a password to “purchase” the free app, but no cost will be applied to the user’s account. Some users with old iPhones may need to upgrade their iPhone operating system to version 5.1 or later, through their PC’s iTunes Store connection. The app is the latest offering in IFB’s “complete marketing pack” — a member benefit package that includes free online market information, FarmWeek’s Cash Strategist feature, and free “eAgrivisor” analysis. Visit {ilfb.org/marketing} for details. Other useful smartphone or tablet apps include: • USDA News, which provides rapid access to USDA news releases, media briefings, and program information. • CME Group, which provides market data and commentary and futures product education from the Chicago exchanges. • GAO News, which provides federal Government Accountability Office reports used by agencies to develop policies and regulations. • The Hill offers updates from the U.S. House and Senate and federal agencies and political information. • Adobe Reader, which allows users to read ag-related reports in .pdf form on the smartphone.

Research grants offered to Illinois 4-H teens Look to FS. When it comes to finding the energy products you need, you can rely on FS. If your new equipment uses diesel exhaust fluid (DEF), your local FS Energy Specialist or participating FAST STOP® location has you covered with both package and bulk DEF. Ask about bulk dispensing equipment, too.

Scan the QR code to visit us on the web or go to www.GofurtherwithFS.com

Illinois 4-H members from 15 to 18 years of age may apply for a $500 CROP research grant. Completed applications are due Dec. 1. DuPont Pioneer and the Illinois Soybean Association each is offering up to five $500 scholarships to older 4H’ers interested in research related to corn, soybeans, or small grains. Members may research related agronomic, human nutrition, or animal science and nutrition issues. The recipients will select an adult mentor (someone other than their parent or guardian) to discuss ideas and offer advice and guidance on a research action plan. Each recipient is expected to develop at least two different ways to publicize the

research results. These may include, but are not limited to, a public presentation, flyer, brochure, video, Facebook page, and/or YouTube video. Eligible applicants must be current 4-H members who are 15 to 18 years of age as of Sept. 1 and have completed all levels of 4-H projects related to corn, soybeans, or small grains. Applications may be downloaded from the Illinois 4-H Foundation website {4hfoundation.illinois.edu/financial_s upport}. Click on the “Clover Challenge Grant” icon. For more information, contact the University of Illinois Extension or Bill Million at the Illinois state 4-H office by emailing wmillion@illinois.edu.

Page 9 Monday, October 15, 2012 FarmWeek

FROM THE COUNTIES

UREAU — Farm Bureau will sponsor stroke detection screenings from 8:35 a.m. to 4 p.m. Thursday, Nov. 8, at the Farm Bureau office. Screenings include carotid arteries, abdominal aortic aneurysm, peripheral artery disease, and osteoporosis. Member cost for the tests is $100, a $35 savings. Call 877-732-8258 for an appointment. ARROLL — Fruit, nut, and fruit basket order forms are available at the Farm Bureau office. Deadline to order is Wednesday, Nov. 14. Call the Farm Bureau office at 815-244-3001 or go online to {carrollcfb.org} for an order form. • KatieLynn Photography will offer a free 8 x 10 family portrait to Farm Bureau members from 9:30 a.m. to 3 p.m. Saturday, Nov. 24, at the Farm Bureau office. Call the office for an appointment or more information. HAMPAIGN — Champaign County Farm Bureau will celebrate its 100th anniversary at 5:30 p.m. Saturday, Nov. 3, at the Royal Community Building, Royal. Dinner will be served. U.S. Rep. Tim Johnson, R-Urbana, will be the speaker. Entertainment will be provided by Marvin Lee, Don Wood calling for square dancing, and Chris Karr, State Fair hog calling champion. Cost is $10. Call the Farm Bureau office at 217352-5235 for reservations or more information. OOK — The giant pumpkin, jack-olantern, and pumpkin pie contests will be at 9 a.m. Saturday at Puckerville Pumpkins,

13332 Bell Road, Lemont. Call the Farm Bureau office at 708354-3276 or go online to {cookcfb.org} for registration and entry information. • Proviso Township residents are invited to attend a free property tax appeals seminar at 6:30 p.m. Monday, Oct. 22, at the Farm Bureau office. The session will educate taxpayers on how to file a successful tax appeal. Call the Farm Bureau office at 708354-3276 for reservations or more information. • Farm Bureau will sponsor a Cook County sheriff ’s safety seminar from 6 to 8 p.m. Tuesday, Oct. 23, at the Farm Bureau office. The seminar will cover personal safety, home security, and emergency planning. Call the Farm Bureau office at 708-354-3276 for reservations or more information. DGAR — Farm Bureau will sponsor a flu shot clinic from 8:30 a.m. to noon Thursday, Oct. 25, at the Farm Bureau office. Cost is $25. Medicare Part B and Medicaid will be accepted. Call the Farm Bureau office at 217-465-8511 for an appointment or more information. ENRY — The Bureau, Henry, Knox, Mercer, and Stark County Farm Bureaus, along with the Illinois Extension units in those counties, will sponsor a series of two equine seminars. The first will be Thursday, Nov. 1, with a presentation from the New Kingdom Trail Riders on therapeutic riding. Jennifer Fecht, certified equine sports massage therapist, will give a demonstration on equine massage. The second

seminar will feature a demonstration from Huntermark Farm. Instructor Rachel Rock Robinson will have a student represent each of the three hunt seat disciplines. Both sessions will be from 6:30 to 8:30 p.m. in the Ag Arena at Black Hawk East (BHE) College. Sessions are free for 4-H and FFA members and BHE students. Cost for others is $5. Call the Farm Bureau office at 309-937-2411 for reservations or more information. IVINGSTON — Farm Bureau, Bank of Pontiac, and Pontiac First United Methodist Church will collect 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 815842-1103 for a listing of the miscellaneous items to be sent. Deadline to return contributions is Nov. 6. ACON — Farm Bureau will host a “Meet the Candidates” open house from 7 to 9 p.m.

618-842-3342 for reservations or more information. • Farm Bureau will sponsor a stroke detection clinic from 9 a.m. to 4:30 p.m. Wednesday, Oct. 24, at the Farm Bureau office. Screenings will include carotid artery, aortic aneurysm, peripheral vascular disease, and osteoporosis. Cost is $100 for members, a $35 discount. Call 877-732-8258 for an appointment. HITE — A flu vaccination clinic will be from 9 to 11 a.m. Wednesday at the Farm Bureau office. Cost is $25. Members of the White County Farm Bureau will receive a $5 discount using the coupon in this month’s publication. Blue Cross Blue Shield insurance as well as Medicaid and Medicare will be accepted. Bring your insurance card. Call the Farm Bureau office at 618-382-8512 for reservations or more information.

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

THE FUTURE IS YOURS FOR THE

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Wednesday at the Farm Bureau office. No speeches will be given. Call the Farm Bureau office at 877-2436 for more information. EORIA — Proctor Hospital will administer flu, tetanus, and pneumonia vaccines Wednesday, Oct. 24, at the Farm Bureau office. Call the Farm Bureau office at 686-7070 for reservations or more information. • A commercial driver’s license course will be at 9 a.m. Thursday, Oct. 25, at the Farm Bureau auditorium. Joe Varda, Mid-Illini Educational Consultants, will be the instructor. Cost is $45 for Farm Bureau members. Call the Farm Bureau office at 686-7070 for reservations or more information. AYNE — A flu vaccination clinic will be from 9 to 11 a.m. Tuesday, Oct. 23, at the Farm Bureau office. Cost is $30. Members of the Wayne County Farm Bureau will receive a $5 discount, with a limit of one discount per membership. Payments from Medicaid and Medicare will be accepted. Call the Farm Bureau office at

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FarmWeek Page 10 Monday, October 15, 2012

profitability

Coming soon — a nitrogen plant near you BY KREG RUHL

The surplus of new, lowcost, domestic natural gas has set the stage for North American nitrogen production to grow again. Several existing facilities are undergoKreg Ruhl ing projects to de-bottleneck production in order to maximize production. Other entities have announced intentions to construct new greenfield nitrogen plants in the Midwest. Potential new projects include a plant in Iowa, Indiana, two plants in North Dakota, two plants in Texas, and another plant along the Mississippi or Ohio River. A popular response to these announcements has been: low cost fertilizer for everyone! While there certainly are benefits to more local nitrogen production, low cost may not be a given. Factors that may support lower prices are lower logistical costs and limited export options. Fertilizer produced locally will shorten the supply chain to the end user and reduce the costs of logistics. Today, much of the nitrogen we import into the U.S. is manufactured in Russia, Romania, Saudi Arabia, and

Egypt. Transit times from these sources to the Midwest easily can be 45 to 75 days, requiring more forward planning and significant freight costs. Exporting from North Dakota would be difficult due to freight costs vs. selling locally. From a realist’s perspective, these new facilities won’t be in a hurry to give away fertilizer. Economics 101 states that they will sell for what the market will bear.

BY DANIEL GRANT FarmWeek

Crop traders and end-users in coming months will turn more of their attention to South America. Short crops in the U.S. due to drought losses have increased the need for corn and soybean production elsewhere in the world, according to market analysts. “The South American crop size will be a major factor going ahead,” Jerry Gidel, analyst with Rice Dairy, said during a webinar hosted last week by the CME Group. “We’re in such a tight situation. It makes the need for soybeans in the coming year quite significant.” USDA last week raised its projection for U.S. bean

Feeder pig prices reported to USDA* Range Per Head $25.24-$47.79 n/a

Weighted Ave. Price $37.17 n/a

This Week Last Week 98,410 107,669 *Eastern Corn Belt prices picked up at seller’s farm Receipts

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week $80.66 $76.39 $59.69 $56.53

Change 4.27 3.16

USDA five-state area slaughter cattle price Steers Heifers

minish. Today, Romanian plants are known to have high costs of production; when nitrogen prices weaken, these are typically the first facilities to go offline. And when plants go offline, there is less competition. Furthermore, stakeholders of these new facilities will expect a return on their investment. Greenfield plants typically require approximately $1.5 billion to construct. Wall Street and private investors alike will look to re-

coup their investment as quickly as possible by maintaining the highest possible sale prices the market will allow. All in all, more domestic nitrogen production is good for the U.S. farmer’s supply. But whether that translates to lower pricing is anyone’s guess today. Kreg Ruhl is GROWMARK’s senior market manager of nitrogen His email address is kruhl@growmark.com.

South American crops needed to offset U.S. losses

M A R K E T FA C T S Weight 10 lbs. 40 lbs.

What influences that equation? Commodity prices, energy prices, ocean/river/rail freights, currency values, supply and demand balances, and proximity to the next demand season, are a few factors. In short, global supply and demand will continue to be the big driver for fertilizer markets — just like in farm commodity markets. New nitrogen capacity in the U.S. will cause the world supply/demand to rebalance as our import requirements di-

(Thursday’s price) (Thursday’s price) Prev. week Change This week 124.91 124.07 0.84 124.97 123.97 1.00

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 143.52 143.72 - 0.20

Lamb prices Slaughter Prices - Negotiated, wooled and shorn 100-155 lbs. for 89.86-112 $/cwt. (wtd. ave. 102.88).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 10-09-12 45.6 13.2 17.4 09-27-12 41.8 24.6 20.2 Last year 23.4 12.7 32.0 Season total 122.6 369.0 100.0 Previous season total 69.2 407.0 144.1 USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

‘The South American crop size will be a major factor going ahead. We’re in such a tight situation. It makes the need for soybeans in the coming year quite significant.’ — Jerry Gidel Market analyst, Rice Dairy

exports by 210 million bushels as shipments were on a record pace through this month. Gidel said traders as of last week were looking for about a 10 percent expansion of soy acres this season in Brazil and Argentina. Soybean planting got off to a slow start in Brazil due to dryness but recent rains eased the situation, Gidel reported. However, new bean supplies in South America won’t be available for another five to six months. “World supplies won’t be available until mid-March,” said Greg Wagner of GWX Ag Advisors. “The U.S. (for the time being) will remain the sole supplier of soybeans.” Strong soybean demand and tight supplies are expected to keep pressure on prices. Corn prices, on the other hand, may have gotten high enough in recent months to erode demand. Corn supplies from other countries also are expected to offset the shortfall in the U.S. and keep a lid on prices. “On the supply side for corn, prospects for a bumper crop in China and expectations that production in Argentina will rebound and Brazilian production will remain large in 2013 could continue to weigh on U.S. export prospects,” said Darrel Good, University of Illinois agriculture economist. Good predicted the U.S. this year could import 75-plus million bushels of corn.

USDA last week reduced its projection for U.S. corn

exports by 100 million bushels. Corn prices could surge this spring, though, as the market likely will attempt to bid for more corn-on-corn acres, according to Randy Martinson, analyst with Progressive Ag. Elsewhere, USDA last week cut its wheat production estimates in Australia and Canada but left its wheat estimate in the Black Sea region unchanged.

USDA

Farm Service Agency ECP APPROVED FOR 41 COUNTIES — Forty-one counties have been approved to implement the Emergency Conservation Program (ECP) due to severe drought, Scherrie Giamanco, state Farm Service Agency (FSA) executive director, announced last week. Farmers in approved counties may be eligible for cost-share assistance for emergency water supplies for confined livestock and existing irrigation systems for orchards and vineyards. Assistance also is available for conservation measures to allow livestock to graze pastures or forage. Approved counties are: Adams, Alexander, Bond, Brown, Cass, Christian, Clay, Coles, Cumberland, Edwards, Effingham, Fayette, Franklin, Gallatin, Greene, Hancock, Hardin, Jasper, Johnson, Logan, Madison, Mason, Massac, McDonough, Mercer, Montgomery, Morgan, Pope, Pulaski, Sangamon, Schuyler, Scott, Shelby, St. Clair, Union, Vermilion, Warren, Washington, Wayne, Williamson, and Woodford. Henry and Menard counties also requested ECP funding, but that approval is pending. Contact your local FSA office for more information. DISASTER ASSISTANCE SIGN-UP FOR 2011 LOSSES — Starting Oct. 22, farmers may enroll in the Supplemental Revenue Assistance Payments (SURE) program for 2011 crop losses. SURE authorizes assistance for crop losses due to natural disasters that occurred through Sept. 30, 2011. Farmers in 93 Illinois counties may qualify for SURE benefits if they had at least a 10 percent loss of one crop of economic importance. Farmers in the remaining nine counties are eligible if they experienced a loss of 50 percent or more of normal farm production. For more information on eligibility requirements, contact your local FSA office. FILING PERIOD FOR DISCRIMINATION CLAIMS — Women and Hispanic farmers who allege discrimination by USDA in past decades may file claims between Sept. 24 and March 25, 2013, according to Giamanco. Those farmers who believe they faced discriminatory practices must file a claim to have a chance to receive a payment or loan forgiveness, Giamanco said. There is no filing fee. Claimants must register for a claims package by calling 1-888508-4429 or going online to {farmerclaims.gov}.

Page 11 Monday, October 15, 2012

PROFITABILITY Corn Strategy

CASH STRATEGIST

Focus shifts to crop demand The October USDA crop report should have gone a long way toward resolving production uncertainty for this year’s crops. Harvest for corn and soybeans was far enough along to give producers a “good feel” for the size of crops they will harvest. And USDA had ear/pod samples from 90 percent of the corn plots and 64 percent of the soybean plots to measure weight. Not surprising, the corn ear weight did not change much from the September forecast because the crop was so mature when the earlier survey was done. The ear count was down less than 1 percent. Hence the small change in the yield forecast. And plantings were revised up, but only a half million acres. Soybean numbers changed

the most, both in acreage and yield. Plantings were revised up 1.1 million acres based on the Farm Service Agency data. But the soybean yield had the biggest shift as it was increased 2.5 bushels to 37.8 bushels per acre. Data from the objective yield states indicated pod counts were up less than a half a percent from last month. But the derived pod weight was up nearly 8 percent, accounting for most of the yield increase. That shouldn’t be a shock as the small pod numbers this year allowed the plant to put its energy from the late rains and cooler temperatures into the seed. Hence, the big jump in pod weight. But with the pod weight near historical highs across the seven states for which we have a long history, any further increase should be small, if there’s one at all. Hence, the yield and production should now be relatively close to what the final number will indicate.

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Cents per bu.

ü2012 crop: December corn futures appear positioned to again test the $7.90s. It’s unlikely prices will test $8.50 again and may not get above $8. Make catch-up sales with December futures trading above $7.80. We may use a rally above $7.90 to add to sales. ü2013 crop: Use rallies to $6.50 on December 2013 futures for catch-up sales. vFundamentals: USDA tightened ending stocks more than anticipated, reducing them to 619 million bushels. With so much harvest completed, the October production estimate should have defined this year’s supply constraints. With that, traders will start to focus more on demand, and indications from that sector have not been constructive. Export sales continue to lag, while the grind for ethanol continues to be constrained. There continues to be talk about South American corn being purchased for delivery to the Southeast, and supplies will come in from Canada.

Soybean Strategy

ü2012 crop: The passing of the October crop reports should shift the focus to demand, and that continues to exceed expectations. We’d continue to wait for a move back near $16.80 before making catch-up sales. ü2013 crop: Use rallies above $13.70 on November 2013 futures for catch-up sales. vFundamentals: Thanks to an upward revision in acreage and higher yields, soybean production was revised up 226 million bushels. The total supply increased 265 million because of the larger reported beginning stocks. But the demand forecast was increased nearly as much, leaving ending stocks at an uncomfortably tight 130 million bushels. The pace of soybean export sales and shipments imply the current export forecast could still be too small. And relatively good crush margins, along with good soybean meal export

sales, point to an active processing pace. Both suggest prices may not have rationed demand enough yet.

Wheat Strategy

ü2012 crop: The October USDA report offered little surprise for the wheat market. As a result, the near-term direction may be heavily dependent on the corn market. Use rallies above $8.90 on Chicago December futures for catch-up sales. ü2013 crop: Make catchup sales with Chicago July futures trading above $8.61. Check the Hotline frequently;

we could add a sale at any time. vFundamentals: USDA pegged domestic wheat inventories at the end of the 20122013 crop year at 627 million bushels, down 27 million from last month. World supplies were reduced 6.2 million metric tons, reflecting smaller crops in Australia, Russia, and the European Union. However, both domestic and international supplies remain adequate to meet this year’s demand. It’s going to take additional production problems or a pick-up in demand to take prices significantly higher.

FarmWeek Page 12 Monday, October 15, 2012

perspectives

It’s the GREAT PUMPKIN, Charlie Brown (FarmWeek file photo)

Pumpkins have come to symbolize autumn. They are found nearly everywhere — as carved out, lit-up faces dotting porches on Halloween night; at pumpkin patches, festivals, and competitions supporting agri-tourism; and in kitchens across America steeped in the smell of the sweet fruit and spices for Thanksgiving dinner. TRACY GRONDINE So, understandably, the great use of pumpkins around this time of year, coupled with the recent drought, have left many people worried about the season’s hottest commodity. Fortunately, experts say that pumpkin carving, pie baking and other pumpkin-centric activities this fall will not be affected by the drought that has hurt many other crops.

As long as pumpkins receive precipitation at the right time, they are one of the few crops that does fairly well in drought conditions. Pumpkin rinds are incredibly susceptible to diseases that come from too much water, so, the lack of precipitation hasn’t been bad for this year’s pumpkins. In fact, experts say that this harvest is just as good as last year’s — if not better. Further, an increase in the total number of pumpkin acres planted this spring is paying off. Overall, there are about 48,000 acres of pumpkins planted in the U.S. most years with even more in the ground this year — plenty for many farmers to sell across state lines. Harvest and shipment to in-state markets is ongoing. While pumpkin quantity is looking good, so is the quality. The top pumpkin-producing states are reporting that this year’s crop is in

good shape. Illinois, Michigan, Ohio, New York, Pennsylvania, New York, and California all claim the overall ornamental pumpkin crop, which is used primarily for jack-o-lanterns, is in much better shape than a year ago, especially for those farmers with irrigation systems in place. Disease is low and farmers are expecting a normal yield. Some farmers are even claiming this year’s pumpkins are the best ever. Bakers, too, can rejoice. Illinois, where the most pumpkins are grown for pie filling (nearly 90 percent of U.S. processing pumpkins are grown in Illinois) reports that the crop is on track. And local pumpkin processors say the crop is in excellent condition. And that’s not only great for consumers, it’s good for the agriculture industry. On average, total U.S. pumpkin production in major producing states has a farm-gate value of about $118 million.

But the orange orbs are worth a lot more past the farm gate. The final retail value is estimated to be $850 million. The pumpkin is a good example of the relatively small share farmers receive of the retail dollar. About 14 percent of the total pumpkin price goes to farmers, while the remaining 86 percent goes toward processing, transportation, and marketing. On average, a farmer receives $11.26 per every 100 pounds of pumpkins he or she grows. The pumpkin represents fall’s bounty. It is nutritious, yet tasty, provides hours of decorating fun and continues to lure city folk to u-pick farms and farmers’ markets across the country. It really is the GreAT PUMPkIN, Charlie Brown. Tracy Taylor Grondine is director of media relations for the American Farm Bureau Federation.

HSUS lawsuit over ‘other white meat’ unjustified attack on farmers I grew up showing pigs at the knox County 4-H show. The first talk I gave at my 4-H Club when I was 10 years old was: “What I Feed My Pig.” As a pig farmer, I paid money to the pork industry “checkoff ” program. That money helped fund the most successful industry advertising campaign JOHN ever: “Pork: BLOCK The Other White Meat.” I was always very satisfied to know that when my pigs were sold, a tiny amount of my money would be combined with money from other producers to help the pork industry. recently out of the blue, the Humane Society of the U.S.

(HSUS) filed a lawsuit attacking the USDA, the Pork Board, and the National Pork Producers Council. USDA collects the “checkoff ” money. The Pork Board got the money to buy “The Other White Meat” slogan from the National Pork Producers Council at a price of $60 million in 2006. This was all approved by USDA and its lawyers. Is $60 million the right price? That slogan has sold a lot of bacon. In simple, uncomplicated language, the money came from pork producers like myself. And it has been used to help the pork industry — advertising “The Other White Meat.” This promotion has helped educate millions of people. What does the HSUS have to do with any of this?

Well, first of all, that organization has millions of dollars given to it on the assumption that the money is used to help shelter animals in your town and mine. Not true. Less than 1 percent of HSUS’ money is used to support animal shelters. It uses the money to attack animal agriculture from every angle. HSUS doesn’t want us to eat meat. It wants federal laws to dictate to pig farmers, chicken farmers, cattle farmers, how our animals are to be raised and cared for. The ag industry has no choice but to stand up to an organization like this. If HSUS succeeds in its effort, much of our pork, beef, and eggs will be shipped into the U.S. from Mexico, Canada, and the Caribbean.

Family far ms will be forced out of business. O n ly th e b ig co r p o r a tio n s will b e a b le to meet th e r egula to r y dema n d s. T h is is a ser io us, un justified a tta ck o n

fa r mer s a n d r a n ch er s. John Block, former U.S. agriculture secretary, is a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, and Terman. His email address is jblock@ofwlaw.com.

“Man, with that much bull at your disposal you should be running for office.”