FarmWeek October 1 2012

36 DAYS REMAIN UNTIL THE NOV. 6 ELECTION

IllInoIs graIn companies last week received Food and Drug Administration approval to blend a f l a t ox i n - c o n t a m i n a t e d c o r n through Dec. 31. .............................3

“ThIs BrIdge needs More Support” is the slogan for a campaign kicked off by the Illinois Soybean Association last week. .............................................5

Monday, October 1, 2012

Two sections Volume 40, No. 40

Farm bill expires — what lies ahead?

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

Given prospective budget impacts and a looming deadline for whopping federal budget cuts, Congress is unlikely to turn back the clock to 1940sstyle farm programs, a Chicago-area economist maintained last week.

Congressional ag committee leaders nonetheless are racing the clock to beat forced spending cuts that could remove wiggle room from House-Senate farm bill negotiations. The 2008 farm bill officially expired today (Monday) amid a House stalemate over passage of proposed 2012 ag legislation.

That’s accelerated the push

by Farm Bureau and other groups for post-election lame duck farm bill passage.

Technically, farmers revert to “permanent authority” — provisions of the Agriculture Adjustment Act of 1938 and the Agricultural Act of 1949 — if a farm bill expires without a new one in place.

That would mean a return to significantly higher “parity” price supports and acreage allotments, and, given heightened budget-deficit concerns, “that’s simply not going to happen,” policy consultant and former American Farm Bureau Federation (AFBF) economist

Ross Korves told FarmWeek.

Under the 2008 farm bill, permanent authority would not kick in for the major commodity programs until the end of the current crop year, noted Korves. Current program benefits and requirements thus would remain in force for corn and soybeans through Aug. 31, 2013, and June 1, 2013, for wheat, oats, and barley.

The bigger issue, in Korves’ view, is the impact of pending budget “sequestration” — automatic fiscal 2013 spending

cuts Congress must make if it can’t reach budget agreement

by Jan. 1. The new fiscal year began today (Monday).

Key ag programs could sustain up to an 8.2 percent sequestration cut if a post-election farm bill deal isn’t struck.

“That would be a real bear,” warned Korves, who sees little possibility of Congress granting a sequestration exemption for agriculture.

Further complicating the issue is a current six-month continuing budget resolution

(CR) that would extend currentyear ag spending levels through March 31. January sequestration would supersede the CR. “You have things that are funded through March 31 but that are not reauthorized by a new farm bill,” Korves said.

“That’s where life gets crazy.

“Congress could vote not to have sequestration, allow the continuing resolution to continue to operate, and then pass a different spending reduction program by April 1.

“But that would give you

only six months (of extended spending). This is just getting incredibly murky. We need resolution to all this, because it’s just getting way too complicated.”

For example, federal crop insurance itself would not be affected by sequestration, but USDA’s Risk Management Agency, which oversees crop insurance at an estimated $75 million annual cost, would be subject to cuts in January.

Further, without a new farm See Farm bill, page 2

Stocks down from year ago; harvest progresses

BY DANIEL GRANT FarmWeek

Old-crop stocks of corn, soybeans, and wheat as of Sept.

1 were down compared to the same time a year ago, USDA reported Friday.

Corn stocks totaled 988 million bushels (down 12 percent from last year), soybean stocks totaled 169 million bushels (down 21 percent), and all wheat in storage was pegged at 2.1 billion bushels (down 2 percent).

Old-crop stocks of corn and wheat were a little less than traders anticipated prior to the report while the bean estimate was larger than expected.

“All in all, it was a friendly report for corn and wheat and a little bit negative for beans,” Brad Paulson, president of Northern Crops Marketing and Investments, said during a teleconference hosted by the Minneapolis Grain Exchange.

Crop prices jumped Friday but Paulson believes the markets will remain range-bound.

“I think we’re in a trading range,” he said. “I’d view decent rallies as a selling opportunity.”

Paulson predicted USDA this month could raise its production estimate for soybeans and possibly corn.

“The good ground that caught a little rain is yielding better (corn) than people thought it would (particularly in Iowa and the northern Corn Belt),” Paulson

said. “It could make up for some of the real low yields in Missouri and South-Central Illinois.”

The ending stocks estimate for soybeans, which was 37 million bushels higher than expected by the trade, implies USDA could raise its production estimate, Paulson noted.

Overall, harvest continues to progress well ahead of the average pace. The U.S. harvest as of the first of last week was 39 percent complete for corn, compared to the five-year average of 13 percent, and 22 percent complete for beans, compared to the average pace of 8 percent.

Harvest in Illinois as of the first of last week was 54 percent complete for corn. But just 8 percent of beans were in the bin statewide.

FarmWeekNow.com Check out details of the latest grain stocks report at FarmWeekNow.com.

Rain showers, including violent storms east of St. Louis in Washington and Clinton counties, delayed harvest the middle of last week.

Topsoil moisture the first of last week in the state was rated 51 percent short or very short,

48 percent adequate, and 1 percent surplus.

The driest portion of the state last week was Northwestern Illinois, which remained locked in extreme drought, according to the U.S. Drought Monitor.

Elsewhere, portions of Western and deep Southern Illinois were in a severe drought last week while the majority of the state was in a moderate drought to a rating of abnormally dry.

The epicenter of the drought now is west of the Mississippi River, with a large pocket of extreme drought in Oklahoma, Kansas, and Nebraska.

Everett Severson of rural Campus in Livingston County watches as corn destined for a local elevator is loaded onto a truck. Severson’s son, Nathan, is in the combine. They were working in a 160-acre field, which was yielding 47 to 128 bushels per acre with an average moisture content of 16 percent. They hoped to finish combining corn last Friday. (Photo by Ken Kashian)

FarmWeek on the web: FarmWeekNow.com

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

FarmWeek Page 2 Monday, October 1, 2012

education

Quick takes RFS DEFENDERS — The National Corn Growers Association (NCGA) last week joined forces with traditional and advanced renewable fuel interests to launch a new coalition, Fuels America, aimed at defending the federal Renewable Fuel Standard (RFS) and “domestic energy supply and national security.” The coalition includes agricultural, national security, renewable energy, and other stakeholders.

“Corn farmers support ethanol and other biofuels not only because they are essential to the continued growth of rural economies but also because they play an essential role in ensuring the future of our nation,” said NCGA President Gar r y Niemeyer, a far mer from Auburn.

“Renewable fuels are a win-win solution to many of the energy problems facing our nation, and we believe that it is our duty to bring this truth to our representatives in Washington and to citizens across the country.”

The launch comes as the U.S. Environmental Protection Agency considers a request to waive corn ethanol requirements under the RFS, a move coalition members warn would have serious consequences for America’s rural communities, “renewable technology innovators,” and energy independence.

GRAIN TOUR SPARKS ILLINOIS EXPORTS — Illinois agribusinesses anticipate more than $52 million in sales following a recent state grain industry tour.

Over five days, 22 international buyers toured a farm, an ethanol plant, a grain bin manufacturer, and a grain processor. Bob Flider, acting Illinois agriculture director, called the results encouraging and noted the three previous tours resulted in combined export sales of $25 million.

In addition to buyers’ missions and tours, the Illinois Department of Agriculture (IDOA) participates in international and domestic trade shows, facilitates buyer-seller introductions, and disseminates trade leads to Illinois companies.

Last fiscal year, IDOA’s activities generated $71 million in sales and another $763 million in projected sales for Illinois food companies and agribusinesses.

ESTATE TAX AID — Farm Bureau supports the Keep the Forest and Farm in the Family Act, which would help farmers and other qualifying small business owners reduce or eliminate estate tax liability by using Internal Revenue Service Code Section 2032A special use valuation, American Farm Bureau Federation President Bob Stallman wrote in a letter to the bill’s authors, Reps.

Diane Black (R-Tenn.) and Mike Michaud (D-Maine).

The legislation would increase the amount that property value can be reduced under Section 2032A, from $1 million to $5 million. In addition, the bill eliminates recapture taxes when timber is harvested using sound forest management practices.

(ISSN0197-6680) Vol. 40 No. 40

October 1, 2012

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

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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

University of Illinois agriculture students listen as agricultural economics professor Rob Hornbaker discusses applied statistical methods last week. Student interest is strong in agricultural and consumer economics courses. (Photo by Kay Shipman)

Large fall freshman class boosts U of I ag enrollment

BY KAY SHIPMAN FarmWeek

Undergraduate enrollment grew 7.4 percent this fall at the University of Illinois College of Agricultural, Consumer, and Environmental Sciences (ACES).

Laurie Kramer, associate dean for academic programs, pointed to a freshman class of 483 students and 168 transfer students, which also is an increase. The graduate student enrollment of 668 includes students enrolled in the college’s four online master’s degree programs.

A strong job market for ag graduates and ACES’ nationally ranked academic programs are drawing students, according to Kramer.

Recently, the department of agricultural and biological engineering was ranked first in the nation by U.S. News & World Report. That department also experienced a large gain in freshmen students this fall. Engineering is particularly

attractive to some students because of the many opportunities to study abroad, she said.

In addition to engineering, student enrollment also is strong in agricultural and consumer economics, animal sciences, and food science and human nutrition.

The demand for ACES graduates is demonstrated by the more than 100 companies that will attend the college’s career fair on Thursday. Students will be interviewed for internships and positions.

Recently, company recruiters sur veyed

by The Wall Street Jour nal ranked the U of I third nationwide as a top university for recruiting, according to Kramer. “We’re getting the word out. This is a place recruiters like to come,” she said.

The strong interest from recruiters is reflected in the placement rate of ACES’ graduates. Within six months of graduation more than 80 percent of ACES graduates have jobs, according to Kramer.

Kramer encouraged prospective students and their families to contact the college and arrange a visit. She said interested students should contact Assistant Dean Jason Emmert at 217-244-4540.

Farm bill Continued from page 1 bill, land comes out of Conservation Reserve Program (CRP) contracts that expired Sept. 30 without provisions for new enrollments. The CRP is exempt from sequestration, but a lack of program authorization could mean more lands permanently leaving the program, AFBF senior economist Bob Young warned.

Wheat would be the first major crop affected if permanent authority were activated.

Under ‘38/’49 provisions, an $18 per-bushel wheat price and possibly higher consumer prices could result, Korves said.

Dairy producers would be affected far more immediately: The Milk Income Loss Contract (MILC) price safety net program expired on Sept. 30, and absent new legislation, existing dairy price supports end Dec. 31.

A ‘38/‘49 snap-back to “parity-based” price would nearly triple existing dairy price supports

at levels more than double current market prices, said Patrick Westhoff, director of the national Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri.

Young noted likely low grower eligibility for paritybased corn or wheat supports, as program allocations would be based on ‘70s planting levels, and pointed out soybeans would not be covered at all. Dairy is “a different story,” Young cautioned: As a “named, non-basic commodity,” all milk would be eligible for ‘38/’49 supports.

“Essentially, you’d have an incredibly high percentage of the nation’s milk products going into government storage, at least on paper,” Westhoff told FarmWeek.

“The government would have a commitment to buy all the butter, all the powder, all the cheese that would be required to support milk prices, at something over $30 per hundred-

weight (compared to the current less than $18 per hundredweight.)”

Tuesday: • Bryce Anderson, DTN chief ag meteorologist • Michelle Damico, Michelle Damico Communications Wednesday: • Tim Guinan, site manager for Lincoln’s New Salem State Park • Tim Schweizer, Illinois Department of Natural Resources • Rupert Borgsmiller, executive director for the Illinois State Board of Elections • Melanie Acklin, director of marketing for Specialty Fertilizer Products Thursday: • Illinois Soybean Association representative • Bonnie McDonald, president of Landmarks Illinois Friday: • Sara Wyant, AgriPulse publisher • Mike Doherty, Illinois Farm Bureau senior economist • Alan Jarand, director of RFD Radio

Page 3 Monday, October 1, 2012 FarmWeek

production

New soy virus spreads to 13 states; yields unaffected

BY DANIEL GRANT FarmWeek

A soybean virus relatively new to the Midwest, soybean vein necrosis virus (SVNV), spread this season to yet another state.

A field infected by SVNV recently was confirmed in Indiana, bringing the total number of states with a confirmed outbreak of the virus to 13.

SVNV was discovered in Arkansas by a University of Arkansas professor in 2008 and since then has been confirmed in Delaware, Illinois (in 2009), Kentucky, Kansas, Maryland, Missouri, Mississippi, New York, Pennsylvania, Tennessee,

and Virginia.

“SVNV is one of our newer viruses we’ve confirmed in soybeans,” said Kiersten Wise, Purdue Extension plant pathologist.

The good news is it appears the virus won’t affect bean yields, at least this year.

“It came in so late, I don’t expect it to impact yields,” Wise said. “But we don’t know how it could impact yields in the future.”

SVNV is spread by thrips, insects that infest a variety of plant species.

The spread of the virus and its impact on soybean plants, therefore, is dependent each

Pork Board responds to production issues, HSUS’ USDA lawsuit The National Pork Board (NPB) is taking a more aggressive approach when it comes to issues involving the use of gestation stalls.

NPB plans to increase direct communication with decisionmakers at the top food retail chains nationwide to help them understand modern pork production methods.

Numerous foodservice agencies and retailers in recent months announced plans to source pork from producers who do not use gestation stalls.

Many of those decisions were made without sufficient research into pork production or consideration of the consequences of such actions, according to Jarrod Sutton, vice president of foodservice and retail marketing at NPB. “We want to make sure our customers understand the facts and potential consequences of any marketing decisions,” Sutton recently told the Illinois Farm Bureau Board of Directors.

Many in the industry are concerned about supply issues that might occur with a gestation-stall-free pork industry. At the moment about 83 percent of sows in the U.S. spend a portion of their lives in gestation stalls, according to an industry survey conducted by Ron Plain, economist at the University of Missouri.

The cost to change the system over to group or other types of housing has been estimated at between $3.9 billion and $5.8 billion. Annual operating costs could increase by an estimated $1.1 billion nationwide.

“Everybody knows it’s a frustrating time for producers,” Sutton said. “There are a lot of negative things being done by activist groups with an agenda.”

The Humane Society of the United States (HSUS) helped drive many of the decisions by food retailer corporate boards to attempt to source gestation-stall-free pork.

“We view it as an opportunity to determine how to best engage our customers,” Sutton said of the recent public spotlight on gestation stalls. “They (retailers) clearly don’t have an understanding” of the consequences of their marketing decisions.

In other pork industry news, HSUS this month filed a lawsuit against USDA alleging that when NPB purchased the trademark to the slogan “Pork: The Other White Meat” from the National Pork Producers Council (NPPC), it violated a checkoff law.

NPB manages the checkoff, which collects 40 cents for every $100 of swine sold. USDA has oversight responsibilities of the board’s management of the checkoff.

“It appears there is no legal merit to this (HSUS) claim,” said Neil Dierks, CEO of NPPC. “And it is another desperate attempt by the radical activist group to severely curtail animal agriculture and take away consumer food choices.”

HSUS in recent months threatened NPPC with a Federal Trade Commission complaint; filed notice of its intent to sue a number of hog operations over alleged emissions reporting violations; and charged that NPPC was responsible for the deaths of hogs in barn fires because the organization asked to give input on national fire standards for ag facilities. — Daniel Grant

year on the environment, insect population, and growth stage of infected beans.

“It may not be economical to invest in an insecticide” to control thrips in an attempt to thwart SVNV, Wise said.

At this point, growers should be aware of the SVNV’s arrival to the area, Wise said. It causes foliar symptoms similar to herbicide injury.

Growers should be on the lookout for a yellowing in plant veins and light green patches or mottled green and brown speckled areas associated with veins.

Leaves will display a blotchier, scorched appearance in shades of orange and yellow, according to the plant pathologist.

The virus can lead to tissue death, which would leave a scorched appearance on severely affected plants.

“It’s something growers need to be aware of,” Wise said.

“The symptoms are very widespread and some growers are concerned because it’s something they haven’t seen before.”

Overall, foliar diseases in soybeans haven’t been a major problem this year, with the exception of scattered pockets of sudden death syndrome.

“Most foliar diseases this year were at lower levels because of the hot, dry conditions,” Wise said. “Diseases won’t be the limiting factor for yields this year.”

This year soybean aphids also have been light in numbers due to environmental and biotic factors, according to David Voegtlin, former Illinois Natural History Survey entomologist.

“A fungus effectively eliminated many of the fall migrants once they reached their overwinter host, buckthorn, in 2009 and 2010,” Voegtlin said. “Densities of soybean aphids, as monitored by suction traps during the fall flights in 2011 and 2012 have been extremely low.”

In fact, soybean aphids this year had the lowest impact on the crop since the insect came to prominence in Illinois a little more than a decade ago.

FDA OKs Illinois blending of aflatoxin-contaminated corn

BY KAY SHIPMAN FarmWeek

Illinois grain companies last week received Food and Drug Administration (FDA) approval to blend aflatoxin-contaminated corn through Dec. 31 — if they meet specific requirements, the Illinois Department of Agriculture (IDOA) announced.

IDOA officials informed licensed grain elevators, handlers, feed mills, and ethanol plants about the blending waiver and compliance requirements, Gerald “Jerry” Kirbach, acting bureau chief of IDOA’s agricultural products inspection bureau, told FarmWeek. Ethanol plants were notified because of their dried distillers grain production.

Blending is not permitted without FDA approval. The federal agency determines rules and sets guidelines for allowable aflatoxin levels in livestock feed.

“Now that FDA has granted Illinois the ability to blend corn with aflatoxin, each grain company will assess its current situation and will individually decide whether or not it will enter into this compliance certification,” said Jeff Adkisson, executive vice president of the Grain and Feed Association of Illinois (GFAI).

“If it does, it will still have to meet certain testing and handling requirements.”

An entity that intends to blend corn must first supply IDOA with a certification form that lists requirements for blending. One requirement is that corn with aflatoxin levels above 500 parts per billion cannot be blended.

Entities may blend corn after certifying they will comply with the requirements and have received in written notification from IDOA, according to Kirbach.

“We (IDOA) were approached by (the grain) industry to apply for the (blending) waiver. We applied Friday (Sept. 21) and received concurrence and acceptance Monday (Sept. 24). We were very pleased,” Kirbach said.

Illinois joins Iowa and Nebraska, both of which requested and received FDA approval for blending aflatoxin-contaminated corn. Indiana requested a blending waiver and anticipated a decision within a few days, according to the Indiana State Department of Agriculture.

“We are hopeful this will help the situation and really appreciate the patience and understanding of producers as we all work through this harvest together,” GFAI’s Adkisson said.

Durbin, Kirk push lock improvements

BY MARTIN ROSS FarmWeek

A modern inland navigation system is a matter of “significant national interest,” U.S. Sens. Dick Durbin and Mark Kirk told leaders of the Senate’s major infrastructure committee last week.

The respective Springfield Democrat and Highland Park Republican joined colleagues in a letter asking the Senate Environment and Public Works Committee to support a long-term strategy to speed construction and operation of critical lock and dam projects along the Mississippi River system.

The committee recently began work on a new Water Resources Development Act (WRDA) bill designed to authorize key waterway projects. Durbin and Kirk joined Sens.

Claire McCaskill (D-Mo.), Roy Blunt (R-Mo.), Tom Harkin (D-Iowa), and Chuck Grassley (RIowa) in the appeal for lock funds.

Shipping and barge industry interests support a proposal to increase barge fuel taxes as a way of replenishing the Inland Waterways Trust Fund. Trust fund revenues are needed to match federal lock rehab/construction funds.

The senators noted much of the current Upper Mississippi lock system was built 70 years ago and that many older locks are only 600 feet in length — half the length of modern barge tows. “That means these goods take twice as long to get down river and into the marketplace,” they advised.

Durbin and company noted the recent temporary shutdown due to failure of a protecting wall at Lock 27 near Granite City that paralyzed Mississippi River traffic for several days. Similar shutdowns could impact the “the overall reliability and timeliness of using the inland waterways system,” they warned.

Fithian grower and Illinois Soybean Association district director Mike Marron noted “pretty much a statewide problem with our roads, our rail, our locks and dams.”

Marron cited congressional failure to fund lock improvements — including construction of seven new 1,200-foot locks at five Upper Mississippi and two Illinois River locks authorized in 2007.

“Our transportation infrastructure as a whole needs an update,” he told FarmWeek.

FarmWeek Page 4 Monday, October 1, 2012

Natural resources

Nutrient goals remain elusive despite recent progress

BY KAY SHIPMAN FarmWeek

Despite a massive effort to reduce nutrient levels in Illinois’ rivers, lakes, and streams, a solution remains elusive.

Last week scientists, government officials, water treatment professionals, and farmers discussed water research, conservation efforts, and potential technology and prac-

tices during the Illinois Water Conference at the University of Illinois.

Nutrient-reduction ideas surfaced, but none was suggested as the silver bullet.

“The environment is very variable . . . that makes it difficult to generalize across large landscapes,” Greg McIsaac, a U of I ecosystem management professor, said during a panel discus-

sion of bioenergy crop buffers.

“There are challenges when you introduce (farm crop) systems. We need to continue collecting data, testing, and adjusting those systems. And it’s not just about the environment and water, it’s about the economics of producing a crop,” McIsaac added.

Phosphorous levels in water illustrate the challenge.

Restored stream surfaces tools to improve water Scientists found more pollution-sensitive fish than they could count living in a Central Illinois stream in the midst of the 2012 drought.

Not only are fish thriving in a restored stretch of Kickapoo Creek, but quality of the water improves as the stream flows through an 88-acre floodplain/wetland park in east Bloomington, participants of the Illinois Water Conference heard last week.

Don Roseboom, a stream restoration specialist with the U.S. Geological Survey, described the impact of a restored stream that drains 9,000 farmland acres near Bloomington.

“We converted a drainage ditch into a meandering stream,” Roseboom said. “We’re trying to treat nutrients (in the stream) and move sediment through (so it doesn’t fill in the streambed).”

Researchers are collecting myriad data from the stream project built beside a 450-acre rural subdivision. Roseboom reported nitrogen levels in the stream are reduced and oxygen levels are higher after water flows through the restored area.

He showed a video of the stream flowing over an undulating mass of plants and credited the in-stream vegetation for helping to improve the water quality.

“We think the water is flowing through so much (plant) surface area” those plants are taking up some of the nutrients, Roseboom said.

“We want to learn the process of nitrogen removal,” he said. “We’re out to find some solutions that work in a rural area. There are darters (small perch-like fish) which are sensitive in that stream.” — Kay Shipman

In 2011, Illinois agricultural use of phosphorous was reduced yet crop yields increased, meaning more phosphorous was removed than applied, said U of I scientist Mark David.

Farmers also applied less phosphorous-containing livestock manure to fields, David noted.

Illinois farmers “are taking away more phosphorous than they’ve been adding,” he said.

“It shows we’re doing a better job overall in how we’re handling phosphorous.”

Yet, phosphorous levels in Midwest rivers remain a problem and contribute to high phosphorous levels in the Gulf of Mexico, according to David.

“It’s a real challenge to reduce phosphorous loads (in rivers). It just takes a couple of storm events” to negatively impact 49 weeks of phosphorous-reduction practices, he said.

Water treatment effluent also adds phosphorous to Illinois rivers.

Chicago water officials reported they continue to learn about phosphorous sources while searching for new treatment

methods to remove the nutrient.

The Metropolitan Water Reclamation District of Greater Chicago (MWRD) learned food and beverage industries, metal manufacturers, and chemical industries use much phosphorous in their processes, reported Kulip Kumar with MWRD. Storm water runoff is another major contributor of phosphorous. Human waste, however, contributes less than a third of the area’s phosphorous, he noted.

MWRD is researching alternatives to phosphoric acid used by manufacturers, using algae to remove phosphorous from recycled materials and implementing best management practices for stormwater.

It would cost $23 million annually to buy chemicals to remove the phosphorous from water treated at MWRD’s seven plants and an additional $3 million annually to dispose of the excess sludge, said MWRD’s Heng Zhang.

“We can really reduce it (phosphorous levels) if we find an alternative to phosphoric acid,” Kumar said.

Water sources expected to meet Kaskaskia region’s needs

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A preliminary regional water plan estimates existing water sources should meet the Kaskaskia River region’s future needs for several decades, a hydrologist reported last week.

“The (regional supply) planning committee feels there is enough water to supply the needs through 2050,” said Vernon Knapp of the Illinois State Water Survey. Knapp spoke during the Illinois Water Conference at the University of Illinois.

The southern regional water plan is the third funded by the state. Similar plans for Northeastern and East-Central Illinois have been completed.

The Kaskaskia planning area covers a 22-county region whose northern area extends from Douglas County west to Macoupin County, south to Randolph County, and east to Richland County.

The region’s main water features are the Kaskaskia River and two federal reservoirs, Carlyle Lake, and Lake Shelbyville. The region has limited groundwater resources, and those are located along the river.

Although Clay, Cumberland, Jasper, and Richland counties are located outside of the Kaskaskia watershed, Knapp said water from the river watershed supplies portions of Clay County and the potential exists for the other three counties to receive Kaskaskia water in the future.

Twenty-nine communities rely on surface water supplies, nearly all from reservoirs. Scientists and planners have confidence in the sustainability of the two federal reservoirs as water supplies, Knapp said.

Three communities’ water supplies were classified as inadequate and would not be sufficient during a drought of the magnitude of that which occurred in 1954, according to Knapp.

However, those towns — Altamount, Coulterville, and Farina — did not go dry during this year’s drought, he said.

All the region’s community water supplies are dwarfed by the two federal reservoirs, whose combined capacities nearly equal that of all the communities’ supplies together.

The state controls about 14 percent of the water in the two reservoirs, and 100 percent of the state’s portion has been allocated for designated uses, Knapp said. Eighty percent of that allocation is for two power plants, he added.

“None of these allocations needs water unless there is really a bad drought like in 1954,” Knapp explained. “It’s possible there will be no release of the lake (water) unless a really bad drought comes.” — Kay Shipman

Page 5 Monday, October 1, 2012 FarmWeek

transportation

Soybean growers stress local bridges need support

BY MARTIN ROSS FarmWeek

They connect Illinois farmers and the rural communities they help support. They are crucial links in moving Midwest commodities to markets around the globe.

And when township or county bridges crumble, close, or become inaccessible to farm traffic, farmer margins, elevator profits, and even ag export potential are hurt.

So warns the Illinois Soybean Association (ISA), which kicked off a “This Bridge Needs More Support” campaign in Iroquois County last week to raise awareness of rural bridge deterioration throughout the state that ISA Assistant Secretary-Treasurer Mike Marron says is “deteriorating our advantage.”

The effort is the result of a recent “critical bridge assessment” compiled for ISA and targeting 12 bridges in Adams, Bureau, Clinton, DeKalb, Iroquois, Macoupin, McLean, Peoria, Shelby, and Wayne counties. Those counties represent each Illinois crop reporting district plus Peoria, a central point for grain origination and Illinois River staging.

The checkoff-funded analysis focused on bridges in “local markets” that are in the greatest need of repair or replacement, Marron told FarmWeek. Stockland’s onelane township bridge — the site of ISA’s announcement — is a key point of access to

Stockland Grain Co. Inc. facilities, “and the local farmers are very dependent on this infrastructure to move their grain,” the Fithian grower noted.

In 2010, 15.4 percent of the state’s 26,000-plus bridges were classified as deficient and obsolete. More than 1,200 are posted for lower weight limits or have been closed, the ISA study reported.

The Stockland bridge is posted for 22 tons — well below the state’s 80,000-pound (40-ton) truck weight limit.

Township Road Commissioner Ronald Langllier cited another area bridge posted for a mere eight tons of weight.

Stockland Township Trustee Roger Ball stressed the importance of local bridges “to be able to get trucks to the elevators, to get Illinois corn and beans on train cars and send them worldwide.” He noted general deterioration of local roads amid meager county funding and a lack of what he deemed state or federal attention to needs within “the hinterlands.”

“We’re going to drop a truck into this ravine,” he warned at the bridge site. “You and I can walk across this bridge, but a semi carrying your food can’t. There’s a lot of money wrapped up in fuel and equipment and so forth to produce (crops). If we can’t get them to export, that’s not helping the State of Illinois or the United States.”

The ISA report concluded

Stockland Township Trustee Roger Ball and his wife, Carol, an area producer, look on as a semi crosses the one-lane community bridge that connects farmers and major area elevator facilities. Inset is an Illinois Soybean Association banner highlighting the need for statewide bridge improvements. (Photos by Martin Ross)

that on average, every $1 invested in bridge construction or rehabilitation would return $10.24 to local economies. In some areas, bridge closures or weight limits may necessitate a 20-mile harvest detour for farmers during harvest.

According to Marron, that’s a 5-cent-per-bushel cost.

A 50-mile detour raises farmer delivery costs by nearly 11 cents per acre, Marron maintained. Stockland Grain President Sonny Metzinger Jr. argued the Stockland bridge is crucial for his company “to be competitive with the ADMs and the other big majors,” in terms of loading multi-unit trains.

That rail access enables Stockland Grain to offer farmers “a little better price,” Metzinger said.

The Iroquois County bridge, built in 1907, serves more than 30,000 farm acres.

Langllier reported the bridge has seen no real maintenance in his 24 years as road commissioner. Bridge restoration would provide a “20-to-one economic stimulus” for the area, ISA director of issues management and analysis Mike Levin suggested.

The Illinois Department of Transportation calculates and dictates load postings for bridges without considering specific bridge users, according to the ISA study.

“Public safety and schools” — access by emergency equipment and school buses — routinely are the priorities for county officials considering road and bridge spending, Levin said.

The largest school bus weighs 36,000 pounds. ISA seeks development of bridges that can handle 80,000 to 100,000 pounds.

If federal transportation funds are available to help bolster local bridges, “we and the county have not found it out,” Langllier mused. One solution, in the commissioner’s view, is an increase in area property taxes.

Marron stressed that “as farmers, that’s something we’re never in favor of seeing.”

“This is a state and a national problem — it affects our ability to function as an economy,” he emphasized.

“It’s definitely in the best interests of our elected officials on a state and federal level to address this problem.”

obtain commercial driver’s license (CDL) and from drug and alcohol testing. Those exemptions already exist in Illinois, although the new law extends them to all farm employees — even those who drive semis.

Relief from the medical card requirement is a third exemption. While this already is available to many farmers, the new law extends the exemption to those who operate combination vehicles, such as a truck and trailer.

A farmer hours-of-service rule exemption will change little from the existing one.

A fifth exemption would be new for farmers. It waives the federal requirements of equipment inspection, repair, and maintenance. But some anticipate that Illinois maintenance laws will fill much of the void created by the federal exemption, Rund said.

Under the new law, Illinois farmers’ greatest gains will be an expanded geographic area

in which the exemptions apply, Rund said. The new exemptions will apply anywhere within the state in which the vehicle is registered and 150 miles from the farm, even outside of Illinois.

Previously, exemptions applied within a 150-mile radius of the farm and generally not outside a farmer’s base state. For trucks 26,001 pounds or less, the exemptions will apply anywhere within the U.S. On the flip side, farmers will have more difficulty qualifying for some exemptions, and some will lose exemptions they have enjoyed, Rund warned.

Previously, a qualified farmer generally was limited to hauling only for his or her own farm and staying within specified geographic limits.

Under the new law, similar limitations apply along with new ones, Rund noted.

To qualify for the new exemptions, the vehicle will

need farm license plates or some other form of stateissued farm documentation, and the vehicle must not be subject to placarding requirements under U.S. Department of Transportation hazardous materials rules, Rund said.

“Those new conditions can pose a significant hurdle for Illinois farmers,” he said.

Illinois limits the number of farm plates each owner may have and the smallest “farm” plate available is for vehicles weighing 16,000 pounds. The state offers no other form of farm vehicle documentation.

The placard restriction will be a problem because placards are required on many farm vehicles, such as anhydrous ammonia nurse tanks and vehicles hauling diesel fuel in containers of more than 119 gallons, Rund noted.

Portions of the MCSR remain in place for farmers, and Illinois vehicle code laws still apply in the state.

Transportation law in place; exemption rules not

BY KAY SHIPMAN FarmWeek

A law exempting farmers from certain trucking regulations takes place today (Oct. 1), but the rules implementing those exemptions are not yet in place, said Kevin Rund, Illinois Farm Bureau director of local government.

In June, Congress passed the Moving Ahead for Progress in the 21st Century Act, also known as MAP-21.

For farmers, the law included a set of five exemptions from motor carrier safety regulations (MCSR).

“Farmers likely will not see the full effect of the exemptions for months,” Rund said last week.

“Farmers who can qualify for the MAP-21 exemptions will find additional relief from the rules and a lot more territory in which to operate — once the exemptions kick in,” Rund said. “How long it will take before things settle out is anyone’s guess.”

Neither federal nor state implementation rules have been written, and Illinois will not be able to draft its own regulations until the federal rules are finished, Rund explained.

Once the rules are written, government agencies’ enforcement policies likely will evolve throughout the early phases of implementation, Rund said.

Illinois farmers already have most of the exemptions, he added.

For example, two of the exemptions would excuse farmers from needing to

FarmWeek Page 6 Monday, October 1, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Soybean harvest was full steam ahead in Northern Illinois last week with all the warm, dry, sunny days. Yields are all over the board, from haildamaged fields that don’t average 10 bushels per acre (bpa), to excellent yields in the high 50s in fields with the better soil types.

Beans are 6 inches tall on the drier soils to waist high and averaging 60 bpa on the better ground. Winter wheat seeding is well under way even though the ground is very dry. We had only about 1.5 inches of rain here in September so our soil moisture is still very very dry. Corn harvest should be in full swing this week when everyone wraps up the bean harvest.

Pete Tekampe, Grayslake, Lake County: It was a cloudy Friday in Lake County. No rain fell last week and none is predicted for this week. Most have started beans, but we are still leaving the low spots because they are green. Yield is not what we expected; we have a lot of pods, but the beans are small. Not much corn has been picked, mostly because people are too busy cutting beans. Take your time and be safe.

Leroy Getz, Savanna, Carroll County: September rain totaled 1.3 inches. April through September rainfall totaled 14.95 inches. Corn is drying down fast. It is as low as 14 percent. Combines are going to soybeans, which also are very dry. Yields on soybeans are running in the 40-bushel-peracre range. Livestock producers are baling cornstalks and some still are baling hay. We just couldn’t resist doing a fifth cutting, which we have never been able to do before.

Larry Hummel, Dixon, Lee County: Harvest is starting to pick up steam here. Soybeans have moved to the forefront as most beans have matured naturally. Yields have been what we expected, ranging between 40 to 60 bushels per acre. In different areas around the county, yields have suffered more than that, but I have not heard of any reports yet. Corn yields are more variable and in comparison are lower than soybeans. I have heard of insurance-adjusted corn as low as 7 bpa and also some 200-plus bpa corn across the scale. We have had neither so far, but I think there is a possibility that we could average somewhere around 5 percent of our five-year average.

Joe Zumwalt, Warsaw, Hancock County: Corn harvest is nearly a memory. Ninety-five percent of the corn is harvested and many are beginning soybeans. While corn yields were slightly better than expected, early soybeans seem to be average at best, with most ranging from the mid-30s to the mid40s. The stems are green, but the beans are dry. Tillage work and shredding is in full swing. At least the temps have cooled and there is a hint of fall in the air. Too bad the days have to get shorter! Enjoy the fall and stay safe in the fields.

Ken Reinhardt, Seaton, Mercer County: Another nice harvest week with no rain. Corn harvest is close to half done while soybeans are just beginning. The soybeans I have started on are in the 50s. I’ve had some good cornon-corn at 200 bushels per acre but most has yielded less. Be safe out there.

Ron Moore, Roseville, Warren County: No rain again last week. Corn harvest is about 75 percent complete in this area. Most farmers seem to be concentrating on corn harvest. The stalk quality is not very good now and the moisture is down to 14 percent on some varieties. Yields are still better than we expected, even on the later-planted corn. Soybean harvest has started with green stems and dry beans making harvest slow. If the drought persists into October, we should be finished with harvest the earliest that most people can remember.

Jacob Streitmatter, Princeville, Peoria County: It was another great week for harvest.

The crops are rapidly disappearing across the country. I have not seen yields vary so much from one end of the field to the other.

Tim Green, Wyoming, Stark County: Quick harvest here and bean cutting has really picked up. Yields probably are what was expected, maybe just a little below. You hear of a bad field now and then in drier areas.

Corn harvest has slowed down due to bean cutting. Corn yields continue to be in the 80- to 120bushel-per-acre range. A shortage of lime is being reported.

Mark Kerber, Chatsworth, Livingston County: Most of the drought-plagued corn is harvested. Yields followed soil types and those who caught a shower in some parts of the county. One can’t base too much hybrid selection for next year on this year’s results. It is time to move on.

Soybean harvest has started on earlier maturities. Soybeans in the same field are either dead ripe or testing 10 percent to green beans with the leaves still on them. It’s almost like parts of the field were replanted.

There will be some elevator dockage on these green beans. Fall tillage is going well where it does some good. Fertilizer applications are starting to pick up as crops disappear.

Markets have been in a technical downtrend.

Ron Haase, Gilman, Iroquois County: We started harvesting corn last week. Some farmers are done with corn. Frost hit our area last week and helped remove the green foliage left in the fields. The frost arrived three weeks ahead of average for our area. Soybean harvest has started, but many soybean fields remain standing. There are many cornfields around where I live that are still standing. As you drive farther away, most cornfields have been harvested. The local closing bids for Sept. 27 were: nearby corn, $7.19; fall 2013 corn, $5.76; nearby soybeans, $15.59; fall 2013 soybeans, $12.84.

Brian Schaumburg, Chenoa, McLean County: Corn harvest is 90 percent complete and soybeans are maybe 20 percent done as good autumn weather persists. Yields on soybeans are better than many expected, mostly in the 35- to 50-bushel range but some are in the mid60s. Fertilizer, lime applications, and tillage are getting a good start, too.

Soil type and productivity index again tell the tale of the season.

Steve Ayers, Champaign, Champaign County: Harvest–o–meter is pegged at 53 percent corn harvested and 9 percent soybeans harvested as of Sept. 24. Rain slowed progress last week with 0.38 of an inch falling during the weekend (Sept. 22-23) and 0.31 of an inch on Tuesday. Hail hit some areas on Friday afternoon (Sept. 21). Some crop damage was reported and one farmer described the hail as being like shaved ice.

The sky was white with the torrential rain and hail combination. Farmers are maintaining equipment and preparing for this week’s dry spell. Beans are dropping leaves and drying, but lots of green stems remain. Think safety!

Tom Ritter, Blue Mound, Macon County: Corn harvest is complete in this area. Soybean harvest started on Monday (Sept.

24). An inch of rain took farmers out until Friday. Hopefully, there is good weather this week and weekend and will be a lot of soybeans harvested. Initial yields seem to be above expectations considering the dryness of this year. Many yields are being reported in the 50-bushel range. Isolated fields of lighter ground or early-maturing varieties definitely will take a hit. Not a lot of field activity for the week with the showers and the damp conditions. There has been some tillage going on, but for the most part farmers are geared up and will be able to move right through soybeans with good weather.

Wilfred Dittmer, Quincy, Adams County: The drought isn’t over, but we did get another 1.72 inches of rain last week, which brings it up to 6.6 inches for the month. Most of the cornfields are history, but very few beans have been cut. Some tillage and mowing have been done. Have a safe week.

Todd Easton, Charleston, Coles County: As the last of this year’s corn crop trickled into elevators, producers began working on bean fields last week. Cooler temperatures last weekend (Sept. 22-23) brought a light frost that helped knock some of the green out of the stubborn soybeans. Two inches of rain on Tuesday and Wednesday curtailed harvest.

That’s precipitation everyone wished had come a couple months earlier. If the weather forecast holds true, soybean harvest soon should be in full swing and we will learn what those fields make after the stressful growing season.

Jimmy Ayers, New City, Sangamon County: We received close to 0.75 of an inch of rain a couple different times last week.

South of us received quite a bit more — upwards of an inch and a half. Those farther north received less. We had frost Monday morning (Sept. 24). The beans that are tough to cut likely will flow right through the combine now. The leaves are off most of the beans that I have seen. The little bit of corn we had left got frosted. Markets were on quite a ride. Corn probably is 98 percent done in Sangamon County and beans are somewhere around 50-60 percent complete. This week we will really change that number. Be careful, your family needs you.

Doug Uphoff, Shelbyville, Shelby County: We finished picking our replant corn last Monday (Sept. 24). We had to dry it down as it was still 29 percent moisture. We are about two-thirds done chiseling cornstalks. There is still some corn in the area to pick, but the county is 90 percent done. A few beans have come out. Haven’t heard enough to determine yields yet, but I’d say they will be average to above average. I do know that they look very green but are testing 10 to 12 percent and some are popping out. We had 1.6 inches of rain here last week, but I have heard of amounts ranging from 1 inch to 5 inches. The 5 inches was near Salem. Not much field activity last week except for corn picking Thursday. Prices at Findlay elevator: fall Corn, $7.23; fall Beans, $15.54; January corn, $7.27; January beans, $15.76. Processor bids add approximately 20 cents to corn and 25 cents to beans.

David Schaal, St. Peter, Fayette County: Storms rolled in here Tuesday morning about 3 a.m. It rained some during the day, and on Tuesday night it stormed all night long. Rain totals for the area were 2 to 3 inches.

Corn harvest in the area probably is about 75 percent complete.

Some are done shelling, some quit and are disking it down, and some have corn they are still planning to shell. This week there will be some soybeans cut if the weather clears up and the forecast is favorable. You look across some bean fields and the beans look dead ripe. But if you look down the rows, there is a lot of green in them. I heard some bean yields in the northern part of the county were in the mid- to upper 30s. With all the green stems and leaves in beans, cutting could be slow and tough and very discouraging. Happy harvest.

Jeff Guilander, Jerseyville, Jersey County: With a little luck corn should be done Friday. We could have waited, but the late corn had some issues (standability, yield, dry down, disease) and it seemed like time to just get it out of the way. The weather has not been helping the beans, so now there is more concern with the pods splitting. With the majority of the corn out of the way, it could be a rapid bean harvest with some bright, sunny days that may be here this week. With more of the leaves falling off, there looks to be some potential there.

Hope we get the chance to find out.

Page 7 Monday, October 1, 2012 FarmWeek

CROPWATCHERS Dan Meinhart, Montrose, Jasper County: Showers moved through the area Friday morning. It rained almost every day last week. Locally, the amounts varied from 1.25 to 1.75 inches. The farther south you went, the more it rained. Areas in Clay County received up to 7 inches. There was light frost one morning last week. The only fieldwork done was over the weekend of Sept. 22-23. Bean harvest is a week to 10 days out. There is still some Apriland May-planted corn to be harvested or disked under. This week is expected to be dry and mild with temperatures in the 70s.

Dave Hankammer, Millstadt, St. Clair County: Harvest activities came to a halt after storms moved through the area this past Tuesday leaving up to 3plus inches of rain. Tornados were reported in neighboring counties to the east causing damage to farmsteads and other structures near Okawville.

Overcast skies and light rain kept fields and crops too wet to work. Some farmers started soybean harvest last week with reports of near-average yields. Corn harvest continues as farmers start to work on cornfields planted or replanted in the first half of May. Progress in these fields is slow due to the high grain moisture and farmers opting to wait for additional field drydown. Doublecropped soybeans and milo continue to develop and are benefiting from the latesummer rains. Local grain bids are: corn, $6.60; soybeans, $15.56; and wheat, $8.03.

Have a safe week.

Rick Corners, Centralia, Jefferson County: I don’t think I was meant to raise anything this year. Now we are flooded. Places around Centralia had 7 inches of rain Tuesday evening, and Washington County had major storm damage from a tornado.

Lots of beans will be ready when it ever dries up.

Kevin Raber, Browns, Wabash County: Heavy rains stopped all field activity. I dumped more than 3 inches of rain from my gauge. Some reports totaled 6 inches or more.

Corn harvest is almost complete.

Yields are from 0 to 160 bushels an acre. A few beans were harvested before the rain. Wheat sowing probably will start when the soil dries out.

Dean Shields, Murphysboro, Jackson County: The weather last week was rainy, with about two to three days of light showers which didn’t amount to much. A lot heavier rain fell to the north of Jackson County. I am done with corn harvest and am going to start soybean harvest as soon as it dries up. The trouble with the bean harvest this year is that we have regrowth and now the beans are dry but the leaves are green. It is going to be a difficult harvest this year. Some wheat has been sown, although not much.

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

Randy Anderson, Galatia, Saline County Bean harvest was the main activity last week if you could get them through the combine. Green leaves and green stems are in every field. Yields are disappointing, with half to one fourth of normal production.

Quality is poor. The beans look like a bunch of dried raisins and butter beans in the grain tank. The only thing I look forward to is the last field to harvest to put this crop behind us and look forward to next year. Armyworm is the insect of the week. Some alfalfa fields were hurt, and they destroyed some cover crops that were planted in cornstalks. The Chicago Board of Trade must think that when you harvest this “binbuster� crop it adds bushels sitting in the bin or at the elevator.

Ken Taake, Ullin, Pulaski County: Harvest is continuing here in deep Southern Illinois. We are continuing with soybean harvest, but with the stress they were under, the soybeans are not ripening evenly. There are beans with green pods that are popping out. Like everything else, it seems as though soybean harvest is also going to be a challenge this year. We have cut a little more than two acres of beans, and yields so far probably average in the low 30s. We had half an inch of rain on Wednesday night and another half inch Thursday night. That means we will be out of the field at least through the weekend.

Please take the time to be careful while in this busy season.

Livestock producer: Corn supply/quality a challenge, bean harvest promising

BY DANIEL GRANT FarmWeek

David Hartke, a crop and livestock producer from Teutopolis (Effingham County), like many farmers is dealing with a double whammy when it comes to t h i s y e a r ’s corn crop.

Yields not only are down significantly due to the drought, but quality also David Hartke h a s b e e n a n issue at some locations due to the presence of aflatoxin in the grain.

Hartke relies on a steady supply of corn and soybeans for the family’s livestock operations. The Hartkes have a herd of 150 Holstein steers and a 6,000-head, wean-to-finish swine operation. “We’re in the process of buying aflatoxin (infected) corn,� Hartke said. “It’s a chal-

lenge pricing the stuff,� he told FarmWeek.

Corn with aflatoxin levels of no more than 300 parts per billion (ppb) can be fed to the steers and levels of 250 ppb can be used in feed rations for hogs, Hartke said.

He expected to finish corn harvest Saturday. He said yields t h i s y e a r ave r a g e d j u s t 1 1 bushels per acre in Clay County, 29 bushels in Effingham County, and 50 to 60 bushels in Cumberland County.

He was more optimistic about soybean yields. “We haven’t started cutting beans,� he said. “But, I feel that it will be a good harvest.�

Hartke recently was reappointed by Ag Secretary Tom V i l s a ck t o s e r ve a s e c o n d three-year term on the United Soybean Board (USB). He served as chairman of the Illinois Soybean Association in 2007/08. “Being a livestock producer, I know how impor-

Conservation, energy on tap for expo Conservation and energy efficiency will be featured at the 2012 Sustainable Living Expo Oct. 27 at the Dixon Springs Ag Center, Simpson. The program will run from 9 a.m. to 4 p.m. and is offered free.

Programs and demonstrations on energy, conservation, and local foods will be offered throughout the day. Based on the popularity of last fall’s expo, a large turnout is expected in the event’s third year.

Sponsors include the Shawnee Resource, Conservation, and Development Area, Connect SI, University of Illinois, Shawnee Communications, Natural Resources Conservation Service, Forest Service, USDA Sustainable Ag Research and Education, Southeastern Illinois College, Shawnee College, John A. Logan College, Rend Lake College, and WSIU Public Broadcasting.

More information is available online at {www.SLExpo.org} and on Facebook at {www.facebook.com/SLExpo}.

tant high-quality protein is,� he said, “I’m g oing to keep that in the forefront (of issues at USB).�

Hartke in his next term at USB also hopes to build demand for soy oil and bring value back to the soy industry, he told the RFD Radio Network.

L i ve s t o c k p r o d u c e r s a t many locations have had to get creative with feed rations to deal with a short corn supply and high prices of corn and soy meal. “A lot of producers are looking at different rations and other ways around the drought issue,� said Dereke

Dunkirk, a g rain and pork producer from Morrisonville and president of the Illinois Pork Producers Association. “But ultimately, the hog producer wants that corn and soy meal diet (for swine),� he added. “That’s where we see the best performance.�

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FarmWeek Page 8 Monday, October 1, 2012

the planet

Water issues on rise; crop insurance key tool?

Andrew Bell recognizes there are no one-size-fits-all solutions to global drought/water availability issues.

But the International Food Policy Research Institute (IFPRI) researcher sees one crucial tool for U.S. farmers coping with drought and heightened water competition: crop insurance.

IFPRI has studied conditions in 126 global watersheds. Bell noted there is serious “water stress”

in South Asia, North Africa, India, and “bits of China.”

In 2010, a third of the world’s population, 40 percent of grain production, and 20 percent of world gross domestic product (GDP) were prone to water-related risks, he said.

Rising energy prices and

hydropower development challenge small farmer-irrigators in low-income regions, even as more diversified diets related to income growth promise to fuel greater water dependency, Bell said. Many areas expected to experience a drop in precipitation in coming decades also anticipate higher ag water demand, he related.

Further, Bell cites continued water concerns in parts of the U.S. Southwest, the recent impact of “a few really big droughts” in the Southeast, and

Acknowledging a world where water has become a precious commodity, “micro-irrigation” pioneer Daniel Hillel argues less is proving to provide much more.

Hillel, adjunct senior scientist at Columbia University’s Earth Institute, has been awarded the 2012 World Food Prize for promoting water-saving methods and increasing crop productivity on arid lands in 30 countries. He was an innovator of micro-irrigation — drip/trickle technology that feeds crops small, finely calibrated amounts of water vs. what he deems traditional cyclical “flooding” of fields.

Working initially with farmers in Israel’s desert region in the 1950s, Hillel helped foster lowvolume, high-frequency irrigation to Jordan, Egypt, Sudan, Pakistan, and Turkey. The United Nations Food and Agriculture Organization adopted his concepts in its sustainability initiative, which has been implemented in Africa, Asia, Australia, and the Americas.

Expanded use of drip irrigation could reduce current global ag water use by 30 percent, according to Andrew Bell, senior researcher with the International Food Policy Research Institute, which oversees corn, rice, and

other key research centers with World Bank support.

Potential for future global climate extremes and variability, coupled with continued population growth, intensify the need for optimal water use, Hillel told FarmWeek.

“Urban areas have their own environmental problems that need to be addressed, and, of course, the issue of food supplies for cities — maintaining them as the population increases,” Hillel said.

“We need to supply the food and the fiber that agriculture produces, and we need to protect the environment. All this

BY MARTIN ROSS FarmWeek

a current “40-year high” in Northeast drought anxieties.

By 2050, under current IFPRI projections and “independent of (potential) climate change,” water issues could jeopardize 52 percent of the world’s population, nearly half of the global cereal crop production, and perhaps 45 percent of the international GDP. Serious water concerns likely will spread in Europe, South America, and the eastern U.S., Bell said.

Technologies needed to help farmers adapt to water con-

requires much more precision and cooperation — cooperation across farms and industries and countries.”

“Precision irrigation” offers potential to improve overall precision farming in developing countries, Hillel said.

Incorporating pesticides and fertilizers into water used for irrigation can provide effective lowfootprint protection in regions where water contamination is an issue. Bell reported precision agriculture has shown distinct yield benefits in global wheat production. — Martin Ross

‘Micro-irrigation’ re-examined to address worldwide water concerns

straints are “highly locationspecific,” he stressed. Bell believes water management/water use efficiency policies can have as significant an impact in reducing ag water stress.

Bell urged continued support for investment in crop productivity, crediting a nearly threefold increase in Illinois’ “rain-fed” corn yield from 1955 to 2008 to ag research and development.

He recommends “greater attention to risk management” as a way of sustaining production through high-stress periods, and applauds House-Senate farm lawmakers for attempting to bolster crop insurance protections.

“I think the move in the (proposed 2012) farm bill toward crop insurance is going to be really helpful in making farms more climate-resilient,” Bell told FarmWeek.

“At the same time, I think we’re seeing a lot more flexibility and adaptive behavior in water management. I think we’re seeing some innovational thinking about water especially in the Southwest and Southeast.”

Help fuel ‘power of soy’ Despite what promises to be a light harvest, Illinois soybean growers this fall can help feed children and nurture economic growth worldwide.

The World Soy Foundation (WSF) has launched the Acre Challenge, according to Executive Director Nathan Ruby, an invitation for farmers to donate proceeds from an acre of beans to “reduce malnutrition through the power of soy.”

Ruby was on hand at the recent national Soy and Grain Trade Summit to solicit support from commercial ag interests. Soyatech, an industry research/consulting firm and summit sponsor, provided $20,000 to spur corporate donations.

“We received our first gift from South Africa a few weeks ago,” Ruby told FarmWeek. “We’ve received funding from Guatemala, from the (soybean) growers association in Brazil. We’d love to have more farmers participate.”

WSF estimates an acre of beans (roughly 42 bushels) can meet the caloric needs of 80 people for a month.

Farmers can make a direct, tax-deductible soybean donation at their elevator or contribute the cash equivalent of an acre’s production. Visit WSF’s website {worldsoyfoundation.org} for information.

The non-profit WSF addresses nutritional needs through: • Distribution of soy foods donated by manufacturers.

• Aid to global small businesses across the soy “value chain.” The idea is to deliver local products such as soy flour or soy milk to needy populations and generate “micro-enterprises” that stimulate economic growth.

Projects often focus on childhood/school nutrition. WSF is kicking off efforts to supply “soy cows” to schools in Guatemala, where 54 percent of children are developmentally stunted as a result of chronic malnutrition.

The soy cow uses four pounds of beans and four gallons of water to produce nearly four gallons of soy milk. Beyond the chance to boost protein intake among Central American students, “this becomes an opportunity to teach kids business, math, economics — to teach job skills,” Ruby said.

Further, while soy cows have proliferated around the world, Ruby cited no central source of training or business-technical expertise. WSF is eyeing an online solution for international ideasharing.

• Nutritional research focusing on soy’s impact on bodily development and “brain growth.” A new focus of research is Ghana, a West Africa nation with a stable government “that’s really on an upward track,” Ruby said.

• Soy nutrition education for young mothers, children, and other groups that distribute soy products.

As soy becomes a dietary staple and a commercial opportunity, developing nations may build or expand crushing facilities, thus boosting demand potentially for U.S. beans. “Our core purpose is reducing malnutrition, whether through U.S. soy, Brazilian soy, whatever,” Ruby stressed. “But a rising tide lifts all ships.” — Martin Ross

Page 9 Monday, October 1, 2012 FarmWeek

FaRM bUREaU NEwS

Hodge named to head IFB member services

CHECKING ON YIELDS

Mark Frels to end 36-year IFB career

Cook County Farm Bureau Vice President and grain farmer Mike Rauch chats about his soybean crop with Japanese trade officials on his farm in Tinley Park. The officials are, from left, Masahide Horota, a representative of the agriculture, forestry, fisheries, and food research division of the Japan External Trade Organization; Ko Hikasa, consul for the consulate general of Japan in Chicago; and Daisuke Kojo, director of agriculture for the Japan External Trade Organization. The Japanese were interested in learning how the drought impacted Rauch’s soybean yield. (Photo

by Bona Heinsohn, Cook County Farm Bureau)

FROM THE COUNTIES

L

IVINGSTON — Farm Bureau, Livingston County Soil and Water Conservation District (SWCD), and the University of Illinois Extension will sponsor the Conservation and Ag Expo from 9:30 a.m. to 2 p.m.

Thursday at the Livingston County 4-H Park, Pontiac.

More than 1,600 students in grades 1-5 will attend. Handson activities in stations will include forestry, water quality and conservation, and farm safety. Call Debbie Ruff at the SWCD office at 815-8446127, ext. 3, for more information.

TARK — The annual Antique Road Show will

S

be at 9 a.m. Friday, Oct. 26, at the Farm Bureau office. Bring one or two of your possessions for Jim Folger, Folger Auction Service, to appraise.

A light breakfast will be served. Call the Farm Bureau office at 286-7481 for reservations or more information.

ERMILION — Farm Bureau, Vermilion Advantage, and Neuhoff Media will sponsor a candidates’ forum at 7 p.m. Thursday, Oct. 11, at the Farm Bureau auditorium.

Candidates who represent Vermilion County in the 15th Congressional District and Illinois General Assembly have been invited. The event will be streamed live on 1490AM

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Mike Hodge of Salem, currently a regional manager for Illinois Farm Bureau, has been named IFBâ&#x20AC;&#x2122;s executive director of member services and public relations (MSPR) effective Feb. 1.

He will Mike Hodge replace Mark Frels, who will retire Jan. 31 after nearly 36 years with Farm Bureau.

Hodge will assume the position of executive assistant at IFB beginning Nov. 1 and serve in that role until Frels retires.

Hodge began his career in 1986 as a county Farm Bureau manager trainee. He was named Boone County Farm Bureau manager in 1987 and served there until

1989. He then served as Randolph County Farm Bureau manager through 2004.

In January 2005 he assumed his current role as manager in Region 3, which is comprised of 29 counties in the center of the state.

Hodge earned a bachelorâ&#x20AC;&#x2122;s degree in agribusiness economics from Southern Illinois University in 1986. He also holds the certified association executive designation from the American Society of Association Executives.

Frels began his career with Farm Bureau in 1977 as the organizationâ&#x20AC;&#x2122;s youngest-ever trainee and manager (in Knox County). In 1986, he was named Region 1 manager, and in 1993 he was promoted to executive director of the field services division, which later became the MSPR division.

During his time as executive director, IFB membership grew from 264,000 to more than 400,000.

FarmWeek Page 10 Monday, October 1, 2012

proFitability

Considerations for managing fertility following a drought

BY SID PARKS

Most of Illinois faced a very challenging year with the 2012 drought. Yield results are highly variable, and while some producers will still have a good year resulting from higher commodity prices or carryover stocks, many are justifiably cautious.

As harvest progresses to its conclusion, thoughts will move toward planning for next year.

Here are several considerations you should factor in before

heading to the field in 2013: • A good approach to fertility management, regardless of the drought, is using yield maps generated from global positioning system-equipped yield monitors. That way, we can replace what actually was used by the crop rather than estimating yield levels or using averages.

• A current soil test (within three years). That is important for correctly assessing nutrient levels and developing potential

Aglime demand, supplies vary

BY KAY SHIPMAN FarmWeek

After harvest, many farmers’ thoughts turn to lime.

Across Illinois, demand for and supplies of ag limestone vary, depending on whether crops remain in the fields and the pH levels of the soils, according to aggregate suppliers.

“Demand is very high. We typically have high demand as long as the weather holds,” said Jim Sergent of Hanson Material Service, which has several locations around the state.

Sergent sells lime across a wide swath of Central Illinois from the Illinois-Indiana border to just west of Springfield and from Bloomington south to Effingham.

Currently, high demand is coupled with tight supplies, Sergent noted. “We have farmers and aglime folks come from far away to get it,” he said.

Larger customers have started stockpiling supplies in anticipation of long waits at quarries, Sergent said.

Demand is not as high in Southern Illinois. “We don’t have all the crops out,” explained Scott Robertson with Anna Quarries and Kinkaid Stone. Robertson sells aglime in six of the southernmost Illinois counties.

“Right now there is plenty (of supply) to meet demand,” Robertson said.

Over the last four years, Robertson said he has seen a steady increase in farmers’ use of aglime. However, those uses don’t compare with more dramatic applications during the 1970s and 1980s when many farmers were refurbishing pastures, he added.

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs.

40 lbs.

Range Per Head $16.11-$46.50 n/a

Weighted Ave. Price $37.77 n/a

This Week Last Week 119,826 104,790 *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 $74.39 $70.19 $55.05 $51.94

Change 4.20 3.11

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 122.39 125.92 -3.53 122.46 125.92 -3.46

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 143.05 142.37 0.68

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 130-180 lbs. for 94.34-118 $/cwt. (wtd. ave. 108.30)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 09-20-12 12.1 22.4 24.2 09-13-12 10.0 29.4 28.3 Last year 10.0 21.7 34.8 Season total 34.8 331.0 61.9 Previous season total 34.6 372.0 82.5 USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

fertilizer plans. This provides the user a basis from which recommendations can be created. Unfortunately, some producers have neglected this area in recent years.

If you need to update your soil tests, should you do it now or wait until spring? Changing time of year for the rest can influence nutrient levels, so consistency is encouraged.

However, the drought may compromise getting accurate results in several ways.

First, extremely dry, hard, or compacted soils make probing a full seven inches more difficult; shallow sampling can lead to biased results. Late-summer rainfall in some areas may have alleviated this concern for some, but it could still be an issue for others.

Second, rain is needed to leach nutrients from crop residue back into the soil profile. Sampling immediately after harvest and before rain performs this function means soil analysis will not measure plant-held Sid Parks nutrients.

There also are challenges with some nutrients being more tightly bound to soil surfaces or trapped within clay layers. Excessive dryness may affect results.

In my experience, producers whose fields did better than they expected or compared to some of their neighbors generally

managed for optimum fertility, and plant roots had an easier time finding needed nutrients.

If fertility is neglected, and an environment short on moisture or other plant stresses appears as we saw in 2012, inadequate plant nutrition may have a direct negative effect on your 2013 yields.

Your FS crop specialist has many tools available to help make sound agronomic recommendations. Good representative soil testing and variablerate nutrient management are two important methods for maximizing grower profitability while reducing risks.

Sid Parks is GROWMARK’s manager of precision farming. His email address is sparks@growmark.com.

Economists: Swine industry headed for contraction

mist Ron Plain projected carcass prices to average between $76 and $79 per hundredweight in The inventory of all hogs and pigs in the the fourth quarter.

U.S. on Sept. 1, 67.47 million head, was up The economists projected carcass price slightly from a year ago, USDA said Friday. ranges of $83 to $93 per hundredweight in the But that likely will change in coming first quarter of next year, $93 to $97 in the secmonths. Livestock economists Friday predicted ond quarter, $93 to $99 in the third quarter, the swine industry will go through a contracand $84 to $87 in the fourth quarter. tion phase, based on herd Hog prices recently plummeted FarmWeekNow.com numbers released in USDA’s due to a massive run-up in slaughGo to FarmWeekNow.com to ter, which for the last seven weeks September hogs and pigs listen to analysts’ outlook for was 5.3 percent higher than the report. hogs this winter.

“We’ve made a U-turn,” same time last year, Plain reported.

Altin Kalo, chief economist Hog prices subsequently with Steiner Consulting Group, declined from $90 per hundredsaid during a teleconference hosted by the weight in August to $63 by mid-September.

National Pork Board. “In May and June pro“We had a tremendous increase in slaughter ducers were looking to expand the herd, but and a tremendous drop in hog prices,” Plain with the latest numbers, we’re looking at a said. “It looks like producers were responding dramatic reduction in the breeding herd.” to red ink.

The breeding inventory, at 5.79 million head, “The good news the rest of the quarter is decreased 1 percent from the previous quarter. slaughter should drop off and give an opporAnd, looking ahead, hog producers intend to tunity for prices to rebound a bit,” Plain noted. farrow just 2.85 million sows from September A reduction of breeding sows likely won’t through November (down 3 percent) and 2.82 million sows from December through February make a major dent in total pork supplies, though. Plain noted hog weights typically (down 1 percent). increase about a half percent per year.

“The industry obviously is moving into a Meanwhile, the average pigs-saved-per-litter contractual phase,” said Dan Vaught, presinumber from June through August was a dent of Vaught Futures Insight. record-high 10.03 head.

“It’s not surprising given the big surge in “Whatever cuts producers make in sows corn prices. It looks like that (higher corn and farrowing, it doesn’t translate to nearly as prices) will continue to be the case (based on big a cut in pork on the market due to producUSDA’s smaller-than-expected corn stocks tivity gains,” Plain said. estimate released Friday).

In Illinois, the inventory of all hogs and “I look for a smaller hog and pork supply by next spring/summer and higher prices,” Vaught pigs (4.65 million head) and market hogs (4.16 million head) as of Sept. 1 was down 1 percent said. from a year ago.

Kalo and University of Missouri ag econoBY DANIEL GRANT FarmWeek

Grain traders don’t see benefit of extended hours

Grain and oilseed traders last week circulated a petition asking the CME Group to reduce trading hours at the Chicago Board of Trade (CBOT).

The CME Group, which owns the CBOT, earlier this year expanded its trading hours to compete with Intercontinental Exchange Inc., which offers similar wheat, corn, and oilseed contracts with longer trading hours.

The CME Group recently

expanded its trading period from 17 hours to 21 hours per day.

Some traders believe the longer hours have spread out trading volume, cut liquidity in the markets, and increased volatility, the Chicago Tribune reported.

The CME Group as of late last week had not responded to the petition.

The expanded trading hours also prompted USDA to change the release times of some of its key reports,

including its crop production, acreage, and grain stocks reports.

As of Jan. 1, key crop reports will be released at 11 a.m. Central time instead of the current release time of 7:30 a.m., USDA announced late last month. The change in report release times was made to allow for the greatest liquidity in the markets and provide the greatest access to reports during working hours in the U.S., USDA reported.

Page 11 Monday, October 1, 2012

PROFITABILITY Corn Strategy

CASH STRATEGIST

Corn stocks tighter than expected While few in the farm community will argue with USDA’s Sept. 1 corn stocks number, it still leaves more questions than answers. Most notably, what happened to the 1.2 billion bushels of new crop that was estimated to have been harvested before Sept. 1.

The past couple of years, those supplies were thought to have displaced old-crop supplies, boosting the supply of old-crop corn in inventory on September 1.

The supply of new crop harvested in August this year was 700 million bushels larger than it was last year. While not all of that would have made it into the pipeline, we’d estimate that as much as 400 million bushels of it might have, especially given the high prices. That would suggest ending stocks would have been 588 million bushels had new crop not been available.

Further muddying the picture was the Sept. 1 wheat stocks number. It implies something near 425 million bushels could have been fed in the summer quarter. That’s more than double last year, and the largest summer wheat feeding since 1988.

After distillers’ grains are added in, the implied summer corn feeding was as large as last year. But after adding implied wheat feeding, the amount of corn/wheat/distillers’ grain equivalents comes in 225 million bushels higher than last year. That’s more than a 20 percent jump.

Meanwhile, red meat and poultry output this summer were nearly 1 percent below last year. If poultry is eliminated because the birds consume a high-protein ration, red meat output this summer was only a half percent above last year. Clearly that doesn’t fit with feed consumption being 20 percent larger than a year ago. It’s even larger than it was two years ago.

In the end, the corn stocks number is friendly because it was below expectations. But with the uncertain statistical fit, there’s enough uncertainty that it may not be able to drive prices to new highs unless the crop is significantly smaller than currently forecast.

The soybean stocks number presented quite the opposite picture. The 169-millionbushel Sept. 1 inventory was 35 million to 40 million above expectations. USDA revised last year’s crop up 38 million bushels to counter the shift, a normal practice.

More important, the larger inventory is the equivalent to adding a half bushel to the yield for the new crop. That’s important with the talk circulating over the last week that this crop’s yield could be revised upward. Some talk has been the hike may be as high as 3 bushels, but we doubt it will be much more than 1 to 1.5 bushels higher, if there is an increase.

Even with the boost in stocks and potential for increase in production for this year, the supply/demand table still will be relatively tight.

Until signs of rationing surface, prices should have a positive bias. It could be middle/late November before a reliable sign of rationing might surface.

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ü2012 crop: The decline off the August high has come to an end. The unknown is how far this move up might extend. But because the 40week cycle bottomed with last week’s low, you should be content to give the market time.

For now, we’d be patient to see if December futures might challenge the 50-day moving average currently at $7.89 with major resistance at $7.95. Given quality issues and crop insurance regulations, carefully consider whether to store any corn on the farm. ü2013 crop: Use rallies to $6.44 on December 2013 futures for catch-up sales. vFundamentals: The USDA Sept. 1 stocks, 988 million bushels, were well below expectations. While many uncertainties surround the stocks number, it will re-ignite the argument that supply hasn’t been adequately rationed.

But that could be countered by supplies coming from South America late this winter. Argentine farmers already have nearly 10 percent of their corn planted.

Soybean Strategy

ü2012 crop: Even though the soybean stocks were a little higher than expected, as long as there’s little reason to doubt demand, prices should move higher after harvest.

Last week’s low also was ideally timed to be a cycle low, as well as a seasonal low. Wait for a move back to $16.90 before making catch-up sales. ü2013 crop: Use rallies above $13.70 on November 2013 futures for catch-up sales. vFundamentals: Even though the Sept. 1 stocks number “padded” the supply a little, there’s still reason to think prices could move to a new high. The industry is going to need to see indications that demand is falling short of current expectations to diminish its bullish attitude.

It may take until middle to late November before there is good insight on demand for this year’s crop. Planting has started in northern Brazil. It is said to already be 10 days

ahead of last year, with producers said to be planting more short-season varieties.

Wheat Strategy

ü2012 crop: The friendly USDA wheat stocks number should turn the short-term trend from down to up. It still is unlikely wheat will test highs in the near-term, but December futures could probe the $9.25-$9.50 resistance again.

Use rallies above $9.25 on Chicago December futures for catch-up sales. ü2013 crop: Make catchup sales with Chicago July futures trading above $8.65.

Check the Hotline; we could add a sale at any time. vFundamentals: USDA estimated the Sept. 1 wheat stocks at 2.104 billion bushels.

The trade was looking for 2.281 billion. This suggests the amount of wheat fed in the summer quarter was significantly larger than everyone had anticipated. Export demand continues to be soft, a situation brought on by U.S. prices still at a premium to other exporting countries.

Unless the pace picks up this winter, it may be difficult to reach the current USDA export estimate.

FarmWeek Page 12 Monday, October 1, 2012

pERspEcTIvEs

Show your patriotism: Exercise your right to vote The Fourth of July began as yet another hot summer day for me this year. What would I do?

Confirm our plans for the day. Get some things done around the house and farm. Participate in a local parade. Dust off the old trombone for the band concert that night, and, following that, watch fireworks with friends and CHUCK family.

CAWLEY Almost a routine without thought or concern for the significance of that historic day back in 1776, nor the joys, sorrows, and turmoil our dear country and its citizens have endured since then.

But as often happens, something changed the routine: During the parade, a small brass band a couple units behind us began playing some patriotic songs.

We all know them: the simple, easy ones that put a spring in your step. As they played “You’re a Grand Old Flag” and “Yankee Doodle Dandy” I couldn’t help but smile and think of James

Cagney starring in the role of George M. Cohan, tap-dancing, singing, and wearing his unabashed and unwavering patriotism on his sleeve.

That evening as our small municipal band performed music of “The Blue and the Gray,” I thought of the one-half million men who died and more than one million casualties in the bloody Civil War. Later as we played “Tribute to America’s Finest,” a medley of songs for our armed services, I scanned the audience for those who stood to be recognized for their service: some older, some middle-aged, and yes, some young.

The audience robustly applauded them as they stood.

They have earned no less. We finished the concert in proper fashion: John Philip Sousa’s “Stars and Stripes Forever” with the fireworks beginning as we played.

As we viewed the fireworks, I reflected on the events of the day and how fortunate I was to have been born in this country and the responsibilities I have to her.

Of these there is one that is most precious: the right to vote.

This, of course, brings me to the purpose of this column and why

I gladly accepted the invitation to write it.

The Illinois Farm Bureau has made it a priority to encourage our members to “Get Out the Vote” for this November’s election.

In 2012, we Americans and particularly we in agriculture have as much at stake in this general election as any in recent memory.

Pollsters continue to note increasing trends over many years, not just recent polls, where Americans say they have less confidence in their government or they say our country or their state is “on the wrong track.”

My advice to those giving pollsters those answers: Vote — elections matter.

There are many consequences to this year’s election, including the role and size we want in our government. How do we address national and state debt, pension obligations, entitlements, services to senior citizens and those on welfare? What is the best approach to revive our economy and create jobs? What is the proper level of taxation?

In agriculture, we specifically have issues and concerns that only elections can address: the freedom to operate our farms

safely and efficiently without onerous and intrusive regulation.

Should special-interest groups dictate which foods are better than others or what determines the best animal husbandry practices?

On these and other issues we need to ask candidates for their positions. Being informed is the first step toward motivating yourself and others to go to the polls.

If I have convinced you to vote in November, I’ve only achieved the first of three parts of my goal. I now want to encourage you to get your friends and family out to vote on election day.

Election history is filled with stories of how a few or even one vote has turned an entire election. We all need to make a difference.

What’s the final mission of this column?

To urge you to join in to help your candidate or candidates in their campaigns.

Farmers have plenty of prime real estate for campaign signs. Consider volunteering to put up signs on your farm and seek other desirable places from your neighbors. Attend candi-

Unfortunately, the economic outlook has not changed much in the last month.

Europeans have come back from their August vacations but still not made any decisions regarding their BRUCE sovereign debt FINKS problems.

On Sept. 12, the German Federal Constitutional Court ruled Germany can participate in the European Central Bank (ECB) bond buying program, the purpose of which is to help keep interest rates lower in the peripheral countries of Spain and Italy.

Since Germany is the lynchpin in helping to finance the ECB on this venture, if the German courts had ruled it ille-

gal, it would certainly undermine the efforts of the ECB to support the bonds of Spain and Italy. Even though buying the bonds of Spain and Italy helps reduce their borrowing costs, it’s not sustainable and does not solve their main problem — too much debt for the size of their economies.

The action buys some time, but the countries still must reduce their debts or face economic stagnation similar to what Japan has experienced for 20 years.

In the U.S., all eyes were on the Federal Reserve.

Based on the very poor employment report released on Sept. 7, the Fed was expected and did embark on another round of quantitative easing, which would be known as QE3, because this is the third time the Fed has done this since 2008.

While each round had a positive effect on the financial markets, the impact has decreased with each subsequent round.

We also worry about the fact that QE is even necessary in an economy that allegedly has been out of recession since June of 2009. We can’t remember any time when the Fed was still trying to stimulate the economy three-plus years into a recovery.

There is very little going on in the real economy. Employment is weak, industrial production is declining, and the U.S. has sovereign debt problems only slightly better than those of the Europeans.

On the plus side, earnings on the Standard & Poor (S&P) 500 continue to advance, but mostly because of cost cutting by companies with wage cuts being the biggest driver.

Corporate America is generating large amounts of cash,

which it then stockpiles. Dividends have increased and companies continue to invest in their plants and equipment but not at the pace expected based on earnings. We believe the stockpiling is due to fear about the lack of demand and uncertainty about future costs of doing business.

The S&P 500 is up about 14.3 percent year-to-date, not counting dividends. It is approaching the all-time highs last seen in the fall of 2007 when the index hit 1460. It seemed back then that the stock market was making new highs even though the economy was stalling.

The situation today looks eerily similar, except interest rates are a lot lower today.

Stocks seem to be the only asset in which investors feel they can make money.

Treasury bonds due in 10

Don’t blame employees for state’s fiscal woes

not rich, pension when I retired.

In the meantime, our politicians in Springfield mishandled our pension funds and spent them on other things over several years, creating the crisis.

Many reports make it sound as though the retirees are to blame for the money problem.

I am also aware that the federal government hasn’t passed the agriculture bill, wanting to wait until after the election.

date forums and other events such as fundraisers.

There is no better time or way to begin a relationship with your current or future legislator.

Mission accomplished? Am I asking too much of myself or others to “Get Out the Vote” or to join in support of a candidate?

My only response is to read from the Declaration of Independence signed that day in Philadelphia, where those patriots signed under the words, “...we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.”

Asking too much? Not for me. I’m going to support my candidates and vote. You should, too.

Chuck Cawley, Illinois Farm Bureau director from Rochelle, chairs the IFB Board Illinois Government Committee.

World’s economy not showing improvement, remains in the doldrums

Editor: After reading the Sept. 3 FarmWeek about lack of pension reform, I had to write and put in my 2 cents worth.

I worked for the State of Illinois for 34 years (many of these issuing food stamps to those in need). During that time I also paid into the state pension plan, hoping to have a comfortable,

LETTER TO THE EDITOR That is not a help to farmers, which includes me.

Those bills also cover the food stamp programs which they wish to slash big time when folks are really in need.

So don’t pick on the state retirees as the reason our state is broke. We worked darn hard under many conditions that others wouldn’t.

NANCY JOHNSON, Rockford

years yield about 1.6 percent, which is not very attractive.

Money market rates are even worse, returning about 0.15 of a percent.

Some investors are considering high-yield bonds and other very risky assets in an effort to boost returns. The prices of these assets also are rising due to investor demand and the Fed’s easy-money monetary policies.

Our fear is that investors do not understand the increased risks they are taking with their hard-earned money and that the underpinnings of the increases in asset prices are getting stretched.

We would like to get more positive on the financial markets, but rational thought prohibits it.

Bruce Finks is the vice president for investments at Country Financial.

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