FarmWeek October 29 2012 by Illinois Farm Bureau

8 DAYS REMAIN UNTIL THE NOV. 6 ELECTION

IllInoIs FaRM buReau o p p o s e s a p r i va t e c o m p a n y ’s request for public utility status and eminent domain authority for a proposed transmission line. ....3

IllInoIs VIneyaRds and wineries continue to grow, according to a new census by the Illinois office of the National Agricultural Statistics Service. ............................5

Monday, October 29, 2012

Three sections Volume 40, No. 44

Getting out vote may be key for ag policy BY MARTIN ROSS FarmWeek

Illinois voters could play a major role in determining the timetable for and direction and impact of the next farm bill, Farm Bureau observers advised last week. During pre-election visits with Illinois Republican House members and candidates — including discussions with Colona Republican House Ag Committee member Bobby Schilling — House Speaker John Boehner (R-Ohio) met with Illinois Farm Bureau President Philip Nelson.

For more perspectives on voting, see page 12

Periodicals: Time Valued

Boehner emphasized the tight post-election window for lame duck congressional action on key issues, leading Nelson to conclude “we’ve got a big uphill battle to get a farm bill at the rate things are going.” IFB is a member of the broad-based coalition Farm Bill Now, which has shifted its initial focus to December farm bill passage. However, return-

ing lawmakers face pressing fiscal concerns, a raft of expiring tax provisions, and possible shifts in party control for the coming session. Further, Boehner reiterated concerns about garnering the 214 votes necessary for House farm bill passage. That means a one-year 2008 farm bill extension — an idea dismissed in July — could be back on the table, Nelson warned. Should that happen, House and Senate ag committees might have to go back to the drawing board in 2013, under renewed budget pressures and, potentially, with new, uninitiated members. November election outcomes thus could have a major impact on future policy affecting Illinois farmers. “This election is going to be tight — every vote is going to count, and they’re (voters) going to decide the future with the farm bill, estate taxes, regulations, the whole gamut of issues,” Nelson stressed. American Farm Bureau Federation Deputy Executive Policy Director Dale Moore sees an admittedly “long-odds opportunity” for returning House

members to bring a farm bill to late fall passage and a HouseSenate conference agreement. Beyond existing policy priorities, lawmakers could base lame duck decisions on what a departing President Obama “is attempting to finish up” or what direction President-Elect Romney might take, he said.

As they reformulate policies or restructure their administrative team, either President Obama or an incoming President Romney could “want very much for the decks to be as clear as possible” heading into 2013, Moore told FarmWeek. On the other hand, lawmakers could seek to hand the political

ball off to the next Congress. Failing 2012 passage and facing the prospect of reverting to 1949 “permanent” farm bill law, Moore believes Congress likely would seek extension of 2008 farm programs. Reactivation of 1949 law long-term See Vote, page 4

Major media help fight GMO labeling initiative

Amid unexpected media support and wide-ranging concerns about West Coast commerce, Farm Bureau is encouraged that California voters next week will reject a GMO labeling ballot initiative. Proposition 37 would require mandatory labeling of foods with GMO ingredients. If it were approved, Illinois and other food manufacturers marketing in California would have 18 months to add that information to ingredient lists. American Farm Bureau Federation (AFBF) ag policy specialist Dale Moore believes farm, retail, and other Prop 37 opponents have risen successfully to “the difficult challenge of explaining the science, explaining the reality (of Prop 37 passage).” In what he deemed “a somewhat surprising turn,” key California newspapers, including the Los Angeles Times, have blasted the proposition. An October Times editorial called Prop 37 “sloppily written,” arguing there is “no rationale for singling

out genetic engineering” for labeling. The editorial stated “there is little if any evidence that changing a plant’s or animal’s genes through bioengineering, rather than through selective breeding, is dangerous to the people who consume it.” “There’s been a lot of hard work on the ground to provide the kind of information needed to counteract the very subjective, very unscientific notions presented to people in various (pro-Proposition 37) ads and communications efforts,” Moore told FarmWeek. The nonpartisan California Legislative Analyst’s Office suggests Prop 37 language “could be construed by the courts to imply that processed foods could not be labeled as ‘natural’ even if they weren’t genetically engineered.” Moore noted further concerns about proposed enforcement provisions that could encourage “citizens lawsuits” against retailers suspected of selling unlabeled

FarmWeek on the web: FarmWeekNow.com

foods with GMO content. Because the proposition would require retailers to get written statements from suppliers verifying products have no engineered ingredients, the major burden would fall on smaller, “mom-and-pop grocery stores” especially, he said. The impact of labeling nonetheless would be felt by “everyone in the food supply chain,” Moore said. California Grocers Association CEO Ronald Fong, whose group represents major regional retailers such as Safeway, Vons, and Costco, maintained Prop 37 advocates “not so much the right to know but more about the right to sue.” “As the discussion has gone on, there’s been more and more fact-based evidence that some of the science touted by proponents of Proposition 37 has been pretty selective and not necessarily supported by other scientists,” Moore said .— Martin Ross

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

FarmWeek Page 2 Monday, October 29, 2012

Quick Takes BEWARE CORPORATE RECORD SCAM — Don’t fall prey to a phony but official-looking document indicating your corporation must pay a fee and complete a “minutes record form.” It’s a scam targeting Illinois corporations, warns Illinois Secretary of State Jesse White. State law does not require corporations to file a “minutes record form” or pay that fee. “The problem is that the form this bogus firm (Corporate Records Service) is sending out looks similar to our Secretary of State’s annual report form,” White said. He said he is concerned corporations will believe they are filing their annual report as required by law. Secretary of state police and the Illinois attorney general’s staff are investigating the matter. If you have questions, call the secretary of state’s office at 312-814-2201. ILLINOIS FARMERS ON ‘ANDERSON LIVE’ — DeKalb County farmers Mike and Lynn Martz address the issue of organic vs. non-organic food on a segment of the television program “Anderson Live” with journalist Anderson Cooper. Last fall, the Martzes hosted a farm tour for Illinois Farm Families and its field moms. Cooper is working with U.S. Farmers & Ranchers Alliance to address questions about food and farming. The segments may be viewed at {andersoncooper.com/page/usfra}. WAIVER IMPACT MINIMAL — A temporary waiver of ethanol requirements under the federal Renewable Fuel Standard (RFS2) would have little impact in the shor t ter m, a c c o r d i n g t o U S DA Chief Economist Joe Glauber. The U.S. Environmental Protection Agency is expected by mid-November to announce its decision on a request by several state governors and major livestock groups to suspend ethanol use requirements for 2013. Ethanol’s fuel oxygen properties and cost discount relative to gasoline mean refiner demand would remain strong, Glauber said at the 2012 Export Exchange in Minneapolis, Wis., last week. The price levels of biofuels renewable identification numbers — credits for blender ethanol use under the RFS2 — suggest refiner demand for ethanol is not wavering, he said.

(ISSN0197-6680) Vol. 40 No. 44

October 29, 2012

Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members go toward the production of FarmWeek.

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

MARKETS

Exports could prove driver of future demand — economist BY DANIEL GRANT FarmWeek

Many U.S. farmers might not be focused on building export demand as tight domestic crop supplies continue to drive prices higher. But exports could be the key to building demand and maintaining profitable crop prices in the future, according to Rich Pottorff, chief economist for Doane Advisory Services. Pottorff projected other major sources of grain and FarmWeekNow.com oilseed demand For information on the recent in the U.S. will Doane Outlook Conference, either decline, go to FarmWeekNow.com. which he projected for crop demand from the livestock industry in 2013, or level off, which could be the case in the ethanol industry by 2015. “Demand is really what has changed (the crop markets) so much. It’s growing so much faster now,” he said last week at the Doane Ag Outlook Conference in St. Louis. “Most of what’s been happening on the demand side has been driven by biofuels and China.” World per capita consumption of grain increased 6 percent since the early 2000s. The ethanol industry during that time increased its consumption of corn from 1 billion to about 5 billion bushels, the economist noted. But that trend likely won’t continue as ethanol production nears the blend wall. “Big growth in the ethanol industry pretty much is behind us,” Pottorff said. “And feed use probably won’t rebound in 2013 (as livestock numbers are projected to decline). “What’s that mean for U.S. agriculture?” he continued. “We need to find more demand, probably from exports.” U.S. exports this month were projected to decline by 100 million bushels for corn and 50 million bushels for wheat due to the slow pace of sales in recent months and strong competition. U.S. soy exports, on the other hand, this month were projected to increase by 210 mil-

‘ We need to find more demand, probably from exports.’ — Rich Pottorff Doane Advisory Services

lion bushels to a total of 1.265 billion bushels, due to a record sales pace through early October. “China is the key driving factor,” Pottorff said. The economist believes China will continue to be a major buyer of soybeans and will increase corn purchases in the future. Corn demand in China is increasing at an annual clip of 5 percent compared to just a 1.5 percent increase in yields. “Yields can’t keep up with demand growth in China (a former net exporter of corn and soybeans) as it stands now,” Pottorff said. China brought 15 million more acres of land into crop production from 2000 to 2012. “Long-term, (the Chinese) can’t continue to add acres like they have in the past,” Pottorff said. The current soy deficit in China is about 2.2 billion bushels. He predicted China’s corn deficit could grow to 1.1 billion bushels by 2017. There will be a lot of competition for that demand, though. There could be anywhere from 200 million to 400 million more acres of land suitable for crop production in Brazil and there currently is about 100 million acres of idle land that was used for crop production in the former Soviet Union. “It seems hard to me to say we’re running out of cropland,” Pottorff added. “We’re going to have to be competitive to not lose more of our share of the marketplace.”

New assessment for nutrient research, education coming A per-ton assessment on fertilizer will be collected to fund research and education on nutrient management. The assessment was the result of new legislation that created the Nutrient Research & Education Council (NREC). The assessment is 75 cents per ton of fertilizer sold. NREC, a private council governed by representatives of the ag sector, will manage the money. Voting NREC members are three farmers, three fertilizer representatives, a certified crop adviser, a specialty fertilizer representative, and the state agriculture director. A five-minute video explaining NREC and its goals is available online at {illinoisnrec.org}.

Eleven Illinois grain dryer upgrades funded

Eleven Illinois grain dryer upgrades were among 244 projects nationwide selected for USDA’s Rural Energy for America Program (REAP) funding, U.S. Agriculture Secretary Tom Vilsack announced. REAP offers financial assistance to farmers, ranchers, and rural small businesses to purchase and install renewable energy systems and to improve energy efficiency. USDA announced more than $16 million in energy funding. For more information on Rural Development projects, visit Rural Development’s new interactive web map at {rurdev.usda.gov/RDSuccessStories.html}

Tuesday: • Jim Angel, state climatologist with the Illinois State Water Survey • Dr. Bob Bradley, professor emeritus of politics and government, Illinois State University Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Guy Fraker, lawyer and Lincoln expert Thursday: • Jill Johnson, Illinois Beef Association • Bonnie McDonald, president of Landmarks Illinois Friday: • Sara Wyant, AgriPulse publisher • Mike Doherty, Illinois Farm Bureau senior economist • Alan Jarand, RFD Radio director To find a radio station near you that carries the RFD Radio Network, go to FarmWeeknow.com, click on “Radio,” then click on “Affiliates.”

Page 3 Monday, October 29, 2012 FarmWeek

CURRENT ISSUES

IFB opposes transmission line project BY KAY SHIPMAN FarmWeek

A private company’s request for public utility status and eminent domain authority contributed to Illinois Farm Bureau’s opposition to a proposed transmission line. Recently, the IFB Board of Directors voted to oppose the Rock Island Clean Line project proposed by Clean Line Energy, based in Houston, Texas. The firm wants to build a 500-mile-long high voltage, direct-current transmission line from western Iowa through Rock Island County across to Grundy County, where it proposes to build a conversion station. IFB filed to intervene in the Clean Line case before the Illinois Commerce Commission (ICC), said Rae Payne, IFB senior director of business and regulatory affairs.

FarmWeekNow.com Visit FarmWeekNow.com for more information on the Clean Line Energy projects in Illinois.

“Clean Line is a private limited-liability company. IFB doesn’t feel the company should be granted public utility status or eminent domain authority,” Payne explained. Clean Line wants to build the transmission line to move wind-generated, direct-current electricity from states west of Illinois. The electricity would have to be converted to alternating current (AC) for consumer use. Some county Farm Bureaus held landowner meetings to

Farmland soil PIs used to calculate assessed values

Shown are general representations of proposed routes for Clean Line’s Rock Island project across Northern Illinois.

discuss the proposal and more are anticipated. Presentations will cover landowners’ legal rights and information they should know before they consider signing an easement agreement, Payne added. If Clean Line receives a permit to construct, IFB wants the company to be required to use single-pole structures that have a smaller footprint than latticetype structures. If the ICC approves the project, the power line should be constructed adjacent to Interstate 80 and not diagonally cross open farmland, according to IFB. The ICC will determine the final route. Farmland owners in Rock Island, Whiteside, Henry, Bureau, LaSalle, and Grundy counties strongly oppose the project. The company has directly contacted some landowners along the project route about

easement agreements, Payne added. Clean Line also is proposing a similar transmission line, dubbed Grain Belt Express, which would cross South-Central Illinois from Pike County to Clark County. A conversion station is proposed either for Clark County or across the state line into Indiana. The company has not yet filed a petition on that project with the ICC. Payne advised county Farm Bureau members to contact their county Farm Bureau offices with any questions about the project and to attend landowner meetings sponsored by the county Farm Bureau. He also recommended landowners go to the Rock Island Clean Line website at {rockislandcleanline.com} to learn more about the proposed project and view the ICC filing.

Editor’s note: To help Farm Bureau members understand how the farmland assessment law works, FarmWeek is publishing a series of detailed articles on the law and its application. The assessment process begins with a soil’s productivity index, commonly referred to as its PI. The PI indicates a specific soil’s suitability to produce a crop. It is based on crop yields under average farm/crop management. PIs are available for each farmland parcel, and each parcel may contain soils with different PIs. The county assessor’s office records PIs on a farmland valuation card or on a property record card, according to Brenda Matherly, Illinois Farm Bureau assistant director of local government. In some cases, farmland information, including soil PIs and acreage, may be mailed with the annual assessment change notice, but a farmer will not find his soil PIs on his property tax bill, Matherly noted. Let’s use a Macon County farmer’s land to calculate the certified value for a soil with a higher PI of 125. The parcel has 15 acres with a PI of 125. The 2013 certified value for PI 125 is $441.53 per acre. The farmer would multiply $441.53 by 15 acres for an assessed value of $6,623. The $6,623 would be multiplied by the tax rate to determine the tax on those 15 acres, Matherly added. Those values apply to assessment year 2013, which will impact taxes payable in 2014, she noted. For a mid-range PI, we’ll use a Fulton County farm parcel with 40 acres of a PI of 108. The 2013 certified value for 108 PI is $162.86 per acre. The farmer would multiply 40 acres by $162.86 for an assessed value of $6,514.14. The $6,514.14 would be multiplied by the tax rate to determine the tax on that 40 acres. For a lower range PI, we will calculate a Perry County parcel with 25 acres of 90 PI. The 2013 certified value for 90 PI is $34.12. The farmer would multiply $34.12 by 25 for an assessed value of $853. The $853 would be multiplied by the tax rate to determine the tax on that acreage. — Kay Shipman

DuPont Pioneer donation to fund agricultural career materials Illinois Agriculture in the Classroom (IAITC) will introduce fourth graders to agriculture-related careers thanks to a $25,000 donation from DuPont Pioneer. The recent donation will be used to update an ag career Ag Mag, an educational magazine featuring agriculture, said Kevin Daugherty, Illinois Farm Bureau education director. IAITC’s information will dovetail with new ag career information aimed at Illinois high school students, Daugherty noted. “As the industry continues to grow, there is a need for more talented individuals, and this initiative will encourage students to pursue a career in agriculture,” said Brad Lance, director of DuPont Pioneer’s heartland business unit. “These dollars are going to help get a much-needed new initiative off the ground,” said Susan Moore, IAA Foundation director. “Funding like this has

become so critical in order to keep our efforts going. I thank and commend Pioneer for making an investment that will reap benefits to agriculture for generations to come. The updated ag career information will use language arts, math, and science to introduce students to careers in plant science, animal science, and other agricultural fields. The materials also will prepare students to meet new statewide learning standards, referred to as common core, Daugherty said. “This information will be one component of an ag literacy and career portfolio” that will be aimed at students in fourth grade through middle school, he added. IAITC is the top funding priority of the IAA Foundation. Funding from agribusiness and related industries, state government, commodity groups, and individual donors helps the foundation to raise funds to implement IAITC programs.

Jackie Jones, left, Illinois Farm Bureau education manager, shows Brad Lance, business director with DuPont Pioneer’s heartland business unit, how beads are used to teach students about agriculture. DuPont Pioneer recently donated $25,000 to the IAA Foundation for ag career materials aimed at younger students. (Photo by Ken Kashian)

FarmWeek Page 4 Monday, October 29, 2012

consumers

Group challenges organic safety, nutritional claims BY MARTIN ROSS FarmWeek

A new study on childhood nutrition and safety focuses further scrutiny on consumer claims about organic vs. “conventional” foods. In fact, a University of Illinois nutritionist maintains both can pose their own risks for young children and argues consumer care and education are crucial in minimizing those risks. Organic produce is not necessarily any more nutritious or safer for children than fruit and vegetables produced using pesticides, the American Academy of Pediatrics (AAP) stated in a report

publicized last week. Organics may be an option for parents who seek to reduce kids’ exposure to possible pesticide residues, the AAP suggested. But residues measured in most conventionally grown produce were found to be well within safety limits, and report co-author Dr. Janet Silverstein maintained organic safety benefits can’t be proven “without long-term controlled studies.” The academy’s conclusions were consistent with a recent Stanford University report that challenged claims that organic foods are “significantly more nutritious” than their conventionally produced counterparts, noted the U of I’s Sharon

Donovan, president of the American Society for Nutrition. “I think the advice to parents is that there’s no nutritional advantage, and that, currently, the cost of organic foods is significantly higher,” Donovan told FarmWeek. “While reducing exposure to pesticides may be a benefit, no long-term human studies have shown detrimental effects of the (average U.S.) pesticide exposure.” AAP’s report contributes to what Donovan deemed a general “paucity of data” on childhood food safety and nutrition. Animal studies often use pesticide exposures significantly higher than an infant likely

would encounter, and she recognizes the practical and ethical challenges of testing children for prolonged exposure. Because of higher organic costs, AAP suggested concerned parents focus on foods shown to have relatively higher pesticide residues, such as apples, celery, cherries, peaches, or strawberries. Those fruits and vegetables generally are eaten whole, increasing theoretical exposure to more concentrated residues left on the skin, Donovan added. Some organic or “natural” foods may can pose their own risks, as well, Donovan noted. For example, fertilization of or cross-contamination of crops

with untreated animal wastes can expose children to foodborne diseases such as salmonella. Such concerns have arisen with farmers’ market popularity and increased “urban gardening,” where in some cases growers use wastes from homegrown poultry to fertilize crops. “We don’t want to do anything that’s going to get parents afraid to feed their kids fruits and vegetables,” said Donovan, a mother of two. “In some way, a low level of pesticide which we could wash off our fruit is much less of a worry than feeding our children lots of sugar-sweetened or caffeinated beverages or foods that are less healthy.”

Senator charges SNAP Dairy indemnity program plagued by fraud, waste continues; funding uncertain The Supplemental Nutrition Assistance Program (SNAP) is the U.S.’ “largest hunger safety net program,” serving more than 46 million Americans, USDA’s Lizbeth Silbermann notes. But ag lawmakers seek to ensure the “food stamp” program is serving needy Americans well and taxpayers responsibly on the heels of a new report from Sen. Tom Coburn (R-Okla.) estimates $4.5 billion in fraudulent or wasteful annual SNAP spending. Currently, SNAP recipients receive some $80 billion in benefits each year. Citing reported program waste and abuse, the Senate’s farm bill plan seeks $4 billion in SNAP funding cuts over the next 10 years, while the House Ag Committee proposes to achieve $16 billion in long-term program savings. In his 2012 Waste Book, Coburn acknowledged that “with so many families struggling financially, this support can ensure many children who otherwise might go to bed hungry have healthy meals.” But he said there also are major purchases of beer, snack food, condoms, and Starbucks coffee made by SNAP recipients. Coburn, a physician, charged “lax controls and mismanagement” compromise SNAP’s value in providing “healthy meals for hungry kids.” USDA allows SNAP use for soft drinks, candy, ice cream, and energy drinks with nutrition labels, “even if they have little nutritional value,” he said. Silbermann, program development director at USDA’s Food and Nutrition Service, noted 54 percent growth in program spending from 2001 to 2009. The program “expands and contracts with the economy,” she told Illinois farmers in a recent Washington meeting. More than 70 percent of Americans currently are eligible for SNAP benefits, and “more than half of them are children,” she related. Another roughly 10 percent are seniors. Working individuals account for nearly 30 percent of SNAP-eligible Americans, according to Silbermann. At the same time, Coburn maintained duplicate, disqualified, and dead recipients receive $1.4 million in benefits each month. He cited the cause of an exotic dancer who earned an annual $85,000 in tips while collecting nearly $1,000 in monthly SNAP benefits and spending $9,000 on “cosmetic enhancements.” To be eligible for benefits, a family must have a maximum $2,000 and a senior citizen $3,250 in banked “resources,” Silbermann said. But individual states may waive resource limits; some allow SNAP use by households with gross incomes up to 185 percent above the federal poverty level. (For a family of four, that is $22,350) USDA is “focusing more on recipient fraud,” reviewing payment accuracy on a state-by-state basis, Silbermann said. But she noted “recipient integrity has been something that’s been the jurisdiction of the states.” She agreed SNAP is “a very complicated program.” “That makes it difficult to administer and sometimes difficult to understand,” Silbermann told farmers. “The microscope has definitely been on us because of the size of the program, the number of people being served, and the cost.” — Martin Ross

While dairy producers were among the first affected by 2008 farm bill expiration, dairymen affected by aflatoxin still have options, at least over the next few months. The Dairy Indemnity Payment Program (DIPP) can continue to operate under a congressional budget continuing resolution in place through March 27, 2013, Illinois’ Farm Service Agency (FSA) reported last week. DIPP addresses losses related to milk discarded due to aflatoxin contamination. Program authorization officially ended Sept. 30, but FSA advised county offices to continue to accept and process new claim applications. Payment of DIPP claims is “contingent upon the authority and availability of funds to pay such claims,” USDA advised. Claims will be paid from available funds on a “first-come, firstserved” basis, based on the date of approval of the DIPP claim, until available funds are gone. Claims received after that point may not be paid, Washington officials warned. “We’re hoping to cover all milk contaminated by aflatoxin that’s dumped by dairy producers,” Illinois FSA program specialist Rick Graden told FarmWeek. “That’s not only milk dumped on or before Sept. 30 — we’re going to continue taking applications tentatively through March 27. “The big concern is that DIPP’s usually funded with just so many dollars. When that runs out, it’s out. No one in Washington’s told us how much money we have in the checkbook.

Vote

Continued from page 1 would impose a federal “command-and-control type of farm policy” counter to modern crop supply-and-demand/marketing dynamics, he told FarmWeek. A number of programs will continue to operate through March under a continuing budget resolution, and 2008 provisions carry through the current major crop year. But dairy producers already are feeling the impact of farm bill expiration (see above). If a lame duck vote proves impossible, Moore urges the earliest possible action by the new Congress to preserve currently proposed ag spending levels. As lawmakers approach March expiration of the continuing resolution, an updated “budget snapshot” could spur a move toward ag cuts beyond the $23 billion to $35 billion in long-term spending reductions proposed respectively in the Senate and House, he advised. That raises several political “what ifs,” Moore said. House and Senate ag committees

“But we’re advising the counties to go ahead and work with producers, take applications, gather information we need.” This fall, Illinois FSA has fielded a number of aflatoxin/dumping inquiries, largely in the St. Louis region. Graden urged DIPP applicants to retain all records related to contamination and disposal, including communications with local public health agencies, dairy buyer-handler test results, and documentation of the number of pounds dumped. FSA guidelines call for production data during the months previous to and following milk disposal, though Graden admits that may prove a challenge in cases in which producers are forced to dump multiple loads over a number of weeks. “Keep track of all the documentation that caused milk to be dumped; keep track of when you’ve paid for an aflatoxin test for your feed that showed it had X parts per billion (aflatoxin),” he stressed.“If dairymen can prove they’ve tried everything in their power to do the right thing, that builds their case and our case that they need help.” Meanwhile, while Milk Income Loss Contract (MILC) program authorization ended with 2008 farm bill expiration, producers have until Thursday to submit final milk production evidence and any supporting documentation to receive MILC payments related to price-based losses for earlier eligible months. — Martin Ross

are known for their bipartisan spirit — he sees Senate Ag Chair Deb Stabenow (D-Mich.) and Ranking Republican Pat Roberts (R-Kan.) and House Ag Chair Frank Lucas (R-Okla.) and Ranking Democrat Collin Peterson (D-Minn.) as basically on the same ag policy page. All four appear secure in their continued party leadership, he said. Even a change in Senate or House party control should not significantly affect ag committee direction, although a shift in majority either could “ignite or chill a desire to move forward,” Moore said. The greater concern, in his view, is a shift in congressional demographics. In many current House races, voters face a choice of “two pretty diverse candidates,” and a shift in district representation could impact interest in and support for ag issues and positions on environmental or other non-ag issues, Moore said. “The election will have some kind of an impact — that is a given,” he concluded.

Page 5 Monday, October 29, 2012 FarmWeek

Specialty cropS

Prospects bright for Northern Illinois winery BY KAY SHIPMAN FarmWeek

Gregg Kane is growing his Illinois River Winery at Utica, as carefully as he grows the grapes in his three vineyards in LaSalle and Jackson counties.

Quality wine remains the focus even as Kane, the winery’s founding winemaker, explores expanding his wine distribution from five to eight states. “If you do nothing else

Illinois vineyards, wineries growing Illinois vineyards and wineries continue growing, according to a new census by the Illinois office of the National Agricultural Statistics Service (NASS). “This (census) put a number to what we have witnessed,” Megan Pressnall of the Illinois Grape Growers and Vintners Association (IGGVA) told FarmWeek. NASS worked on the census in cooperation with IGGVA. Illinois wine production increased by 16 percent and the number of wineries grew by 36 percent in the five years since the last grape and wine survey was completed by the University of Illinois Extension. “It’s an exploding industry,” said Paul Hahn of Mackinaw Valley Winery in Mackinaw and an IGGVA director. Over the same time period, the number of grape growers grew by 33 percent, while vineyard acreage increased by 2 percent. In 2011, Illinois nurtured an estimated 175 commercial vineyards with 1,066 acres of grapevines and 136 hobby vineyards with 41 acres. Southern and South-Central Illinois are home to 66 percent of the state’s vineyards. Grape production grew the most between 1996 and 2000. That pace has slowed since then; however, total production continues to increase. Illinois remains a grape-deficit state for wine production. Michigan, New York, and California export the most grapes into Illinois. Winery growth remains on an upswing with the biggest jump starting in 2006. Current wine-making capacity is 1 million gallons, and that is projected to nearly double over the next 10 years. IGGVA Director Gregg Kane of Illinois River Winery in Utica speculated that projected increase is conservative. IGGVA’s Pressnall and Kane agreed more winery growth will occur in the state’s northern region given Chicago’s large customer base. The economic impact of the grape and wine industry will be gauged through application of the census data, according to Pressnall. Five years ago, the grape and wine industry added $319 million to the state’s economy, Pressnall said. “We feel confident the (economic) impact will be much higher,” she added. — Kay Shipman

right, it has to be good quality wine,” Kane says of the wine industry. To the best of Kane’s knowledge, Illinois River remains the only Illinois winery with out-ofstate distributors. He has even turned down orders from distributors so quality is main-

FarmWeekNow.com View a video inter view with Gregg Kane of Illinois River Winery at FarmWeekNow.com.

tained as demand grows. “It’s very easy to take the order; but to have to produce and distribute, that’s another story,” says Kane, who grew up on farm near La Harpe in Hancock County. “We’re trying to manage our growth 100 percent through distribution.” Today, distributors account for 90 percent of the winery’s business with its Utica tasting room contributing 10 percent. Ten years ago, all profits were made from tasting-room sales. Kane grows enough grapes to produce 90 percent of his grape wines. He buys the rest of the grapes and fruit on the mar-

Gregg Kane of Illinois River Winery displays his unique seasonal wines in his Utica wine tasting room. Kane works with distributors to market his wines in five states and is looking to expand into more states next year. (Photo by Cyndi Cook)

ket, trying to purchase as much fruit as possible in Illinois. With 100 wineries, Illinois now boasts a mature wine industry that produces worldclass white and red wines, says Kane, a director on the Illinois Grape Growers and Vintners Association Board of Directors. As the quality of Illinois wines gains reputation, interest in the state’s wines is expected

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

Celebrating Co-op Month.

Illinois grape and wine production shows an explosion of vineyards between 1996 and 2000, while wine production experienced major growth six years later. The new study marks the first grape/wine census by the National Agricultural Statistics Service (NASS Illinois office).

to continue growing across the state and the country. The Illinois Restaurant Association plans to serve only Illinois River wines at its annual banquet. Growth in the state’s grape and wine industries is a bright spot in Illinois’ economy, Kane notes. Interest in locally grown foods also is boosting interest in local wines, particularly among younger customers, he adds.

FarmWeek Page 6 Monday, October 29, 2012

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: This was the third week in a row that rain delayed harvest. We needed the rain and it is welcomed, but now we also would like to finish up combining. We had 2 inches of rain on Monday (Oct. 22) and Tuesday and 0.25 of an inch on Thursday. The yields continue to be variable with some corn-after-bean fields on good ground coming out in the 160bushel-per-acre (bpa) range. We also have had our share of disappointing yields on the lighter soils of less than 50 bpa. Leroy Getz, Savanna, Carroll County: Rain of 0.9 of an inch for the week brought October totals to 3 inches. April through October now totals 18.5 inches. Warm days mid-week brought green grass back. Corn harvest is progressing in the area but there still are many acres left standing. I know of only a few fields of soybeans unharvested. Ryan Frieders, Waterman, DeKalb County: The week brought us warmer temperatures and more rain. Crops are being harvested as field conditions allow. There are fewer and fewer cornfields left in the area. Ground conditions improved enough Thursday to resume fall tillage, but a cold front and a shower that night slowed us down again. I haven’t seen any anhydrous ammonia being applied, but with cooler temperatures, I am sure application will begin as well. Larry Hummel, Dixon, Lee County: A couple of days were fit to harvest corn between showers, but soybeans have had to wait for better days. Corn prices have struggled to hold their own. Exports have been dismal at this price level. Of course, if you believe in the conspiracy theory, prices are being driven lower by crop insurance companies trying to save money on claims, as the fall option price is set this month. I’m not big on conspiracy theories, but I’ve been wrong before. Who would have thought that someone would try to corner the soybean and silver markets back in the 1970s? Joe Zumwalt, Warsaw, Hancock County: The weather certainly has taken a turn toward winter. Colder temps and the recent rains have greatly slowed the end of harvest. There are still a few fields of soybeans and corn waiting to be harvested. Tillage has been slowed as well, but I see a lot of rippers and verticaltillage tools beginning to move around the area. I believe that if the soil temps stay cold, some anhydrous applications will begin this week. A lot of dry fertilizer has been applied even though challenges with barge transportation have limited the supply in the area. Despite poor crops, recent land sales in the area have hit new all-time highs. Two tracts sold for $14,600 and $14,000 per acre. How high can they go? Ken Reinhardt, Seaton, Mercer County: Persistent rain showers delayed the finish of harvest. A few have finished corn but have some beans left. There may be about 25 percent of the beans left to cut. It looks like a dry week ahead. Ron Moore, Roseville, Warren County: We received 1 inch of rain last week in two different events. The weather was too cloudy and damp to get the last few acres of crops in this area finished. No anhydrous has been applied yet; the soil is too warm and wet. Cooler temperatures are predicted for this week, so application should start soon. Tillage will begin again when it dries out. Jacob Streitmatter, Princeville, Peoria County: We finally received some muchneeded rain across the area. Not prime weather to wrap up harvest, but we have to make the most of it.

Tim Green, Wyoming, Stark County: Another nice week with above-normal temperatures and above-normal precipitation. We had a little more rain the first of the week and a little field activity Thursday and Friday. It rained Thursday night, but a few people got a little more corn picked Friday. I heard of a few beans being cut Thursday ahead of the rain. Farmers are working on machinery, talking to the crop adjusters, and watching the football games. Mark Kerber, Chatsworth, Livingston County: No farming was done this past week. Rain and muddy fields are delaying the end of harvest. Hopefully, a string of nice, sunny days will let us get back into the fields to complete our work. Corn exports are terrible, but soybean demand is staying strong. South American weather this winter will give us some price direction. Ron Haase, Gilman, Iroquois County: Harvest continues at a slow pace due to rain and wet weather. On Oct. 20 and 21, only one other farmer hauled grain to the local elevator besides us. More joined in on Monday, Oct. 22, before getting rained out. It rained again on Tuesday. We harvested more corn on Wednesday and Thursday. After we quit, it rained again. Many were hoping to harvest soybeans on Thursday, but I did not see anyone haul any loads to the local elevator. That has been the pattern of harvest over the last two weeks. Cold weather arrived with the latest rain. It is supposed to be dry for the next 10 days, so that should help with harvest and tillage work. There are corn and soybean fields yet to be harvested. We still have 35 percent of our corn to harvest. Our corn that was at 30 percent did dry down to the middle 20s. Local closing bids for Oct. 25: nearby corn, $7.45; fall 2013 corn, $6.02; nearby soybeans, $15.54; fall 2013 soybeans, $13.03. Brian Schaumburg, Chenoa, McLean County: Sunshine and cool temperatures returned after a balmy, wet week. There are still some beans to be harvested. This extended dry spell may help fieldwork to be completed and start to cool soils down so we can think about NH3 applications. Setting dates for attending the winter conferences to try to understand what went right or wrong this season. Only one more week of election ads! Corn, $7.46; January, $7.50; fall 2013, $6.14; soybeans, $15.37; January, $15.41; fall 2013, $12.95; wheat, $8.15. Steve Ayers, Champaign, Champaign County: Another wet week slowed harvest even more with 2.1 inches early in the week and another 0.4 of an inch Thursday night. At least it looks clear going this week, with temperatures from the 30s to the 50s. The cooler temperatures will slow drying, but at least we will have sunshine to dry things out. Farmers are chomping at the bit to get back into the field. Our crop reporting district has 96 percent corn harvested and 73 percent soybeans combined. Wilfred Dittmer, Quincy, Adams County: Hello from a soggy Adams County. After about 0.1 of an inch of rain last Friday (Oct. 19) then 1.1 inches on Monday (Oct. 22), and then more drizzly rain Thursday night, what remains of the needed fieldwork has been put on hold. Our temperatures also are dropping, which makes us think winter is not far behind. At least we are getting some moisture to help replenish our dry soils. The crops are about all harvested and the crop watching is about done for 2012. Fall fertilization is progressing slowly, but with the cooler temperatures that probably will pick up. Carrie Winkelmann, Tallula, Menard County: We received 5.9 inches of rain in October. Harvest has been complete and has been for some time, so there really are no crops left to report on. We are waiting for everything to dry out to get the fall herbicide program on and the soil temperature to drop to get on with anhydrous application. Glad to be getting the rain.

Tom Ritter, Blue Mound, Macon County: It was a slow week for fieldwork with the moisture, but no one was complaining since the subsoil still needed to recharge. Late weekend and early week rainfall left totals somewhere around an inch. A few beans were combined on Thursday with the sun and strong winds, but very few acres of soybeans are left in this area and there hardly is any corn left. A little bit of tillage is going on but not a lot. Most of it is done and soil temperatures are way too warm for anhydrous ammonia. Todd Easton, Charleston, Coles County: The last half of October has not been very kind to producers wanting to finish up soybean harvest. More than 1 inch of rain fell at the beginning of last week and it was followed by approximately half an inch on Thursday night. Some of us finished bean harvest between the rains, while others find themselves just a few days away. It seems the area bean average will be well into the 40s, a nice surprise in this extreme drought year. Another surprise is that the harvest that started in July will end at least five months later in November. Wheat fields are enjoying the steady moisture and occasional warmth as they green up with good stands. Hopefully, these wheat fields will be able to support good double-crop beans next summer, unlike this year. Jimmy Ayers, New City, Sangamon County: We received three different shots of rain that totaled almost 2 inches at our place. Between the rains, there was some chiseling done. There are still a few beans and a little corn left to harvest. A lot of people are talking about what the insurance payments will be. Most are thinking about next year’s crop and hoping for better than we had this year. A few tiles are running, which is a good sign. David Schaal, St. Peter, Fayette County: Showers came through here on Friday, Oct. 19, and again on Monday, Oct. 22. On Thursday night, a cold front dropped temperatures almost 30 degrees. Along with the cold front, came 0.6 of an inch of rain. Harvest is winding down, except for some later-maturing beans and some double-crop beans. Not a lot of double-crop beans have yet been cut in the area, nor has much wheat been sown. Very little fall tillage work has been performed due to the rain. Soybeans sure turned out better than everyone thought. Everyone is thinking and planning for next year. Dan Meinhart, Montrose, Jasper County: It rained several days this past week, which slowed field activities. The Thursday night rain left about half an inch. Very few days were fit for bean harvest. There are still several fields of corn and beans to be harvested. Some wheat is still going into the ground. The reported yields on the Mayplanted corn are running quite a bit higher than the April-planted corn. Fertilizer continues to be applied. Forecast is for a dry week ahead with highs in the 50s and lows in the 30s. Dave Hankammer, Millstadt, St. Clair County: Most of the first-crop soybean fields have been harvested, although there is a scattering of firstcrop beans waiting for the combine. Farmers have started to focus on combining doublecropped soybeans and midMay planted corn. We received almost an inch of rain this past week, making the remaining harvest a challenge. Fields are wet enough now that the combines are leaving tracks and some ruts. Seedling wheat plants are making an appearance in some of the fields and appear off to a good start. Additional fields were seeded this past week before rain showers moved through the area. Local grain bids: corn, $6.96; soybeans, $15.28; wheat, $8.28.

Page 7 Monday, October 29, 2012 FarmWeek

CROPWATCHERS Rick Corners, Centralia, Jefferson County: After a couple more inches of rain last week, we are now cutting ruts and getting stuck trying to combine beans. The wheat sowing time is about to run out. Uh oh — more rain coming through St. Louis Friday. Will this year ever end? Dean Shields, Murphysboro, Jackson County: The weather last week was pretty good for harvest, until rain Thursday night put a halt to it. I’m almost done with harvest, and a lot people are finishing up with their soybeans. Corn harvest has been pretty well over for awhile. Most everybody is starting to do tillage work, and that is coming along pretty well, especially since it is still a little on the dry side. Quite a bit of wheat sowing has been going on and some has been sowed long enough that it is up and looking pretty good. Things are going OK this fall; I hope it continues.

Kevin Raber, Browns, Wabash County: Harvest is mostly over, except for double-crop soybeans. I’m not sure if mine will cut this coming week or not. The wheat is off to a good start. I believe I have a good stand. There has been a lot of fall tillage done, but I’m not sure how much fertilizer is being spread ahead of the tillage. Randy Anderson, Galatia, Saline County It was a slow week on the farm. I can’t believe we finished harvest before November. The only real activity on the farm this past week was making some preparations for the upcoming deer season. Went to St. Louis last week, and I was surprised by the amount of beans still in the field. The bad thing was how wet the fields were, so the last acres to be cut do not look like they will be too much fun for those farmers. Wheat stands look good, but we need a good soaking rain — as we are still very dry here.

Ken Taake, Ullin, Pulaski County: We received a cool drizzle this Friday morning. It was a beautiful week up until then with warm temperatures and sunshine. We managed to finish our soybean harvest Wednesday night, so for us, at least, harvest is over for this year. There are quite a few people in the area who are finished. The others are finishing up. Corn, for all practical purposes, is done. Soybeans are wrapping up quickly. There is still some wheat being planted in the area. I’m glad harvest is over. Now we will move on to other fall activities, such as spreading fertilizer and lime and getting our equipment ready for the winter. Take time and be careful as we finish up this busy season.

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

Much-needed rain slows harvest, other fieldwork BY DANIEL GRANT FarmWeek

Cooler, drier conditions that moved into Illinois Friday should give far mers a window of opportunity to resume har vest and other fieldwork. The forecast Friday morning called for brisk temperatures and dry conditions th r o ugh th e weeken d a n d much of this week. “This extended dry spell m ay h e l p f i e l d wo r k t o b e completed and start to cool soils down so we can think about NH3 (ammonia) applications,” said Brian Schaumburg, a Far mWeek Cropwatcher from McLean County. H a r ve s t t h e p a s t t h r e e weeks has been delayed by intermittent rainfall. Fertilizer applications have been delayed by the rain as well as warm soil temperatures. The University of Illinois Ag ronomy Handbook rec-

ommends waiting until the soil temperature reaches 50 degrees to apply fall nitrogen. “I believe that if the soil temps stay cold, some anhydrous applications will begin this week,” said Joe Zumwalt, a Cropwatcher from Hancock County. Far mers who have crops left to harvest probably had mixed feelings about all the recent rain. The majority of the state this month received between 2 and 5 inches as of Thursday. The portion of the state still in a severe drought last week was reduced. A small portion of upper Northwestern Illinois, along the Iowa and Wisconsin borders, last week was all that remained in extreme drought. “We needed the rain and it is welcomed, but now we would like to finish up c o m b i n i n g ,” s a i d B e r n i e Walsh, a Cropwatcher from

Winnebago County. Wa l s h ’s f a r m l a s t we e k received 2.25 inches of rain.

Har vest on his far m was d e l ay e d f o r t h r e e s t r a i g h t weeks.

Portions of deep Southern and Western Illinois last week were in a moderate drought, but the rest of the state (mostly eastern and south-central) now is abnormally dry or back to normal after suffering through the worst drought since 1988. Harvest last week still was well ahead of the averag e pace, despite the recent rains, due to an early start and rapid dry-down of the crops this season. S t a t e w i d e , h a r ve s t l a s t week was 92 percent complete for corn (compared to the five-year average of 62 percent) and 80 percent of beans were in the bin (compared to the average of 70 percent). Nationwide, corn harvest last week was 87 percent complete (compared to the average of 49 percent) and soybean harvest was 80 percent complete (compared to the average of 69 percent).

Crop supplies could tighten short-term; production projected to increase Crop prices are expected to remain strong near-term as supplies could tighten the rest of this year. But it could be a different story next year if crop plantings are large and yields return to trend-line levels, according to economists last week at the Doane Agriculture Outlook Conference in St. Louis. M a r t y Fo r e m a n , s e n i o r economist at Doane Advisory Services, projected USDA in coming months will reduce its corn production estimate by 75 million to 100 million bushels. USDA earlier this month projected cor n production would total 10.7 billion bushels, which would be the smallest crop since 2006. “I think it’s headed down, closer to 10.6 billion bushels,” Foreman said. “We have a

huge demand rationing job to accomplish in the next several months.” Foreman projected a season-average price of $7.75 per

w h e a t s u p p l i e s h ave b e e n trending toward a 90-day supply, which would be considered tight, according to Dan Manternach, ag services director

‘We’re not at super-tight stocks, but we’re getting down toward that level of tightness. I don’t see anything to suggest wheat prices will collapse.’ — Marty Foreman senior economist, Doane Advisory Services

bushel for corn. Meanwhile, soybean and wheat prices also were projected to remain strong this year. U.S. soy exports were projected to remain robust until South American production is available next spring, while

for Doane. “We’re not at super-tight stocks, but we’re getting down toward that (90-day supply) level of tightness,” Manternach said. “I don’t see anything to suggest wheat prices will collapse.”

The price outlook for next year wasn’t as friendly, though, as crop supplies were forecast to bounce back from this year’s drought. Foreman projected cor n plantings in 2013 would remain high next year (96.5 million acres compared to 96.9 million acres this year) while U.S. soybean plantings were projected to expand by 800,000 acres to 78 million acres. “If we get the acres and return to a trend yield (of 163 bushels per acre compared to 122 bushels this year), we would almost triple (cor n) stocks to around 1.7 billion bushels,” Foreman said. “That could put (corn) prices back below $5.” Bill Nelson, another senior economist at Doane, projected double-crop bean

plantings next year will grow to a five-year high of 5.5 million acres. If bean plantings increase and yields retur n to trend (between 42 and 43 bushels per acre compared to 37.8 bushels this year), prices could dip from a n ave r a g e o f $ 1 5 . 7 5 p e r bushel this year to $12 to $13 by mid-decade, Nelson predicted. Overall, wheat supplies have tightened, but Manternach noted soft red winter wheat, which is g rown in Illinois, is the most abundant. T here cur rently is a 155-day supply compared to just a 60-day supply of hard red winter wheat. “Soft red winter wheat is abundant and a big acreage jump is likely in 2013,” he added. — Daniel Grant

FarmWeek Page 8 Monday, October 29, 2012

technology

Crop developers attempt to cover all bases, phases BY MARTIN ROSS FarmWeek

The Drought of 2012 served as a sort of trial by fire for major crop developers. “What a year to test a drought-tolerant hybrid!” quipped Pioneer’s Janelle Buxton, whose company is preparing for a third planting season with its drought-tolerant Optimum AQUAMax corn. While AQUAMax was introduced for use in “water-limited environments” across the western U.S.; 2 million acres were planted this season. Buxton told FarmWeek the company will expand plantings nationwide in 2013. In 700-some on-farm trials last year, Pioneer noted a 7 percent average per-bushel yield increase in water-stressed areas and a 3 percent bump under normal growing conditions. Meanwhile, following successful 2012 trials with 105day and 112-day maturities, Syngenta plans to significantly boost supplies of its Agrisure Artesian 4111 varieties next year for growers in both the Western Plains and the Midwest. Syngenta agronomist Randy Kool recognizes farmers can’t

anticipate what the 2013 season may bring. His company thus has focused on “maximizing yield when it rains and minimizing stress when it doesn’t.” Both the Pioneer and Syngenta products take a “multi-phase” approach to drought/-yield protection. Buxton noted “there’s no silver bullet solution for drought,” and reported AQUAMax was designed to offer stronger root development, more prolific silking, and improved kernel fill. Syngenta focused on 13 different genes to “protect the plant from beginning to end,” Syngenta’s Kool told FarmWeek. “A couple work with the root mass,” he related. “We’re trying to get a bigger, more fibrous root mass underneath the plant. Two or three more genes work with plant height. If you come under stress, the plant will shorten up and you lose your photosynthetic capabilities and yield possibilities. “We also have some genes that work with the ear itself. We’re trying to get through the pollination process, get the ear pollinated, and maintain kernel weight and size.” Monsanto’s entry in the 2013 drought tolerance derby, DroughtGard, was planted this

year on a limited basis in the Western Plains, where commercial release is planned. DroughtGard hybrid lead Mark Edge suggested the product could reach Illinois or Iowa in 2014. Because DroughtGard contains a new GMO water use trait derived from soil bacteria, “we need to keep it out of (Midwest) export markets until we get all the regulatory approvals we need,” Edge told FarmWeek. Current Syngenta and Pioneer drought traits are non-GMO: No international approvals were needed prior to release even of varietal “stacks” such as Artesian 4111, which include approved GMO insect resistance/herbicide tolerance traits. But both companies are eyeing possible biotech traits to further strengthen tolerance. Pioneer maintains eight chronically dry “drought management environments” for trials in California, North Carolina, Nebraska, Texas, and Chile. “We’ve been working on this for 50-plus years,” Buxton said. “This is still sort of uncharted territory, in terms of the mechanisms of drought and thousands and thousands of variations and genes that work together.”

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EU OKs Viptera for import; GMO uncertainties remain U.S. growers and exporters have cleared a key European biotech hurdle, but the road to continentwide GMO acceptance remains laden with potholes and inconsistencies. The European Union (EU) officially has approved corn imports produced using Syngenta’s Agrisure Viptera trait, clearing the way for exports of U.S. ethanol co-products such as distiller’s dried grains (DDGs) and corn gluten feed. The long-awaited decision came after years of efforts by the U.S. Grains Council (USGC) and council partners including EU grain trade and feed millers associations. Viptera, which includes broad-spectrum insect controls, was the focus of controversy in the fall of 2011 when Bunge refused to accept corn produced from the product because of concerns about Chinese market acceptance. A federal court rejected Syngenta’s request for an injunction against Bunge. USGC Senior Regional Director Cary Sifferath argued Viptera approval clears the way for sales to major markets such as Ireland, Spain, Portugal, and the Netherlands. European access to U.S. product “is critical at a time of crop shortage in Europe and high prices,” he said. Illinois Farm Bureau Senior Commodities Director Tamara Nelsen noted continued inconsistency in biotech policies among the EU’s individual member countries. Even as EU officials signed off on Viptera, the French government last week called for a heightened review of GMO safety. “I suspect we could soon have two European markets,” Nelsen said. “You might have two or three countries that are really persnickety about GMO imports, while the rest may just continue taking them.” A biotech industry accord set for November completion could help resolve EU market uncertainty, Nelsen said. The agreement will govern patent expiration of ag biotech events, setting forth stewardship and related guidelines throughout grain and oilseed production/supply chains. That ideally will assure a smoother, more regulated flow of “generic” GMO products likely to hit the market after major companies relinquish patent protections. The American Seed Trade Association and Biotech Industry Organization maintain the agreement “brings focus to irrational international obstacles to innovation and trade.” The European Food Safety Authority has challenged a French university study of cancer risks from Roundup Ready corn that prompted France’s demand for GMO re-review. The agency as well as several other French scientists argue University of Caen researchers who tested rats with GMO corn and Roundup-laced water provided insufficient evidence of major health risks. Given the discord between nations and scientists across the EU, “it’s important that this biotech accord gets done right,” Nelsen stressed. — Martin Ross

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Page 9 Monday, October 29, 2012 FarmWeek

FROMâ&#x20AC;&#x2C6;THEâ&#x20AC;&#x2C6;COUNTIES

HRISTIAN â&#x20AC;&#x201D; An estate tax seminar will be at 6 p.m. Wednesday, Nov. 7, at the Farm Bureau office. Call the Farm Bureau office at 824-2940 for reservations or more information. â&#x20AC;˘ A private pesticide applicator test review will be Tuesday, Nov. 20, at the Farm Bureau office. There will be two sessions â&#x20AC;&#x201D; from 8 to 9:30 a.m. and 10 to 11:30 a.m. with a limit of 20 persons per session. Call the Farm Bureau office at 824-2940 by Thursday for reservations or more information. LARK â&#x20AC;&#x201D; Farm Bureau will sponsor an informational meeting on the Ameren transmission line project at 6 p.m. Monday, Nov. 19, at the Clark County Extension office. Rae Payne, Illinois Farm Bureau senior director of business and regulatory affairs, and Laura Harmon, Illinois Farm Bureau general counsel, will be the speakers. â&#x20AC;˘ The Clark County Farm Bureau Foundation is holding a raffle to raise funds for the Clark County Ag Literacy Program. Raffle tickets for a shotgun are available at the Farm Bureau office. OOK â&#x20AC;&#x201D; The annual member appreciation banquet will be at 5:30 p.m. Thursday, Nov. 8, at Georgioâ&#x20AC;&#x2122;s Banquets, 8800 W 159th St., Orland Park. A silent auction will be held. Tickets are $10 and must be purchased in advance. Members may bring non-perishable food items for Ronald McDonald House Charities and any new or used toys for the Toy Box Connections. Tickets may be purchased at the Farm Bureau office before Thursday. Call the Farm Bureau office at 708354-3276 for more information. â&#x20AC;˘ Farm Bureau will sponsor a tour from 10 a.m. to noon Saturday, Nov. 17, at Tedâ&#x20AC;&#x2122;s Greenhouse, Tinley Park. Highlights will include mechanical seeding, water treatment and fertilization, and propagation techniques. Call the Farm Bureau office at 708-354-3276 for reservations or more information. ASALLE â&#x20AC;&#x201D; Boat and auto storage units are available at the LaSalle County 4-H Fairgrounds. Cost is $10 per foot. Call the Farm Bureau office at 815-4330371 for more information. â&#x20AC;˘ Farm Bureau will sponsor family portrait sessions Friday through Sunday at the Farm Bureau office. Call the Farm Bureau office for available

appointment times. ACON â&#x20AC;&#x201D; Farm Bureau is reminding members that the change in truck routes through downtown Decatur goes into effect Monday (today). Visit the website {maconcfb.org} or call the Farm Bureau office at 877-2436 for more details. EORIA â&#x20AC;&#x201D; A stroke detection plus health screening will be Monday, Nov. 5, at the Farm Bureau auditorium. Farm Bureau members will save $35 on the four screenings. Call 877-7328258 for an appointment. â&#x20AC;˘ The Prime Timers will meet at the Princeville Heritage Museum Wednesday, Nov. 7. Lunch will be at 11:30 a.m. followed by a tour. Call the Farm Bureau office at 686-7070 by Thursday for reservations or more information. â&#x20AC;˘ The annual meeting will be at 5 p.m. Saturday, Nov. 10, at the Dunlap High School. Dinner will be served. Cost is $10. Call the Farm Bureau office at 686-7070 by Friday for reservations or more information. OCK ISLAND â&#x20AC;&#x201D; The Rock Island County Farm Bureau Foundation will sponsor its Harvest Gala fundraiser at 6 p.m. Saturday, Nov. 10, at the iWireless Center, Moline. Dinner will be served. A silent and live auction will be held. Cost is $50. Call the Farm Bureau office at 309-736-7432 by Monday, Nov. 5, for reservations or more information. â&#x20AC;˘ Rock Island and Mercer County Farm Bureaus will sponsor an estate planning seminar from 10 a.m. to 3 p.m. Monday, Nov. 26, at the Reynolds American Legion. Erica Eckley, Iowa State University Center for Agricultural Law and Taxation, will be the speaker. Topics will include

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estate planning, planning for business succession, and Illinois estate tax exemptions. Cost is $10 for members and $20 for non-members. Registration must be received at the Farm Bureau office by Friday, Nov. 26. Call the Farm Bureau office at 309-736-7432 for more information. ERMILION â&#x20AC;&#x201D; Vermilion County Farm Bureau Foundation will sponsor its seventh annual silent auction during the annual meeting Tuesday, Nov. 27, at the Farm Bureau office. Past items have included sports memorabilia, food, savings bonds, and more. If you have an item to donate for the auction, call the Farm Bureau office at 217-442-8713. Items will be publicized prior to the auction.

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â&#x20AC;&#x153;From the countiesâ&#x20AC;? items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county Farm Bureau manager.

The eternal wait for the â&#x20AC;&#x153;Peanutsâ&#x20AC;? character Linus is over â&#x20AC;&#x201D; the Great Pumpkin has arrived. Well, at least it made it as far as Cook County. It took 10 men to lift Don Carlsonâ&#x20AC;&#x2122;s 942-pound pumpkin onto a cart to be weighed for the county Farm Bureauâ&#x20AC;&#x2122;s annual Giant Pumpkin Contest. Carlsonâ&#x20AC;&#x2122;s entry won, garnering him a $250 prize. The event also featured a pumpkin pie contest and a jack-o-lantern decorating contest. (Photo courtesy of Cook County Farm Bureau)

FarmWeek Page 10 Monday, October 29, 2012

profitability

Take time now to develop a business plan for 2013 BY JEFF BUNTING

Over the last couple of weeks, you may have watched your yield monitors dip to levels that you probably have never seen before. These yield levels may bring up a lot Jeff Bunting of questions about 2013 crop performance as you put your com-

bine away for another year. Your local FS crop specialist can assist you in developing a plan and preliminary budget for 2013, even though many questions remain about planting intentions, cost of inputs, and commodity prices. Sifting through that information and thinking about what you plan to grow gives you the greatest likelihood to be successful. You may be concerned by corn-following-corn yields, which were disappointing

In-depth issues focus of AGMasters Conference Emerging crop issues connected with the recent developments will be covered Nov. 26-27 during the University of Illinois AGMasters Conference. Enrollment is limited and preregistration is encouraged before the Nov. 9 deadline. The conference will start at 8 a.m. with a general session followed by one and a half days of in-depth classroom-style discussions. Each classroom session is limited to 40 participants. The conference will be in the I Hotel and Conference Center, located across the street from the Assembly Hall in Urbana. Session topics include the potential for drought-tolerant crops, Illinois innovations with cover crops, strategies to slow western corn rootworm resistance, and carryover concerns for soil-residual herbicides. The registration fee is $275. For information on the topics, speakers, and conference format, go online {cropsciconferences.com}. To register online, go to {cropsciconferences.com/registration/5/step/0/}. For more information, contact Sandy Osterbur with U of I crop sciences at 217-333-4424 or email her at saosterb@illinois.edu.

M A R K E T FA C T S Feeder pig prices reported to USDA* Weight 10 lbs. 40 lbs.

Range Per Head $27.96-$46.00 n/a

Weighted Ave. Price $38.49 n/a

This Week Last Week 92,988 100,692 *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 $79.40 $80.31 $58.76 $59.43

Change -0.91 -0.67

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) (Thursday’s price) Prev. week Change This week 126.95 124.65 2.30 126.98 125.17 1.81

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 144.92 144.80 0.12

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 119-195 lbs. for 83.91-114 $/cwt. (wtd. ave. 102.64).

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 10-18-12 61.4 16.4 9.6 10-11-12 58.3 7.0 17.2 Last year 43.9 17.6 29.7 Season total 242.4 393.0 126.9 Previous season total 158.5 441.3 195.0 USDA projected total 1055 1200 1250 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

again in 2012 although many factors contributed to this decline. As you gather recommendations on seed corn hybrids and soybean varieties and schedule your fall anhydrous ammonia applications, there are still a number of ways to manage corn-on-corn acres in order to be productive and profitable. Regardless of the crop you choose to plant in 2013, planning and preparation now can help bring corn yield back to trend line. The challenge coming out of 2012 will be taking the necessary steps to get corn and soybean yields back to the levels everyone is trying to achieve.

plant, it will be imperative to keep agronomic pressure on weeds and insect resistant populations by using chemical and cultural practices that optimize yield potential. As we bring this crop year to an end, take time to develop a business plan for next year. Taking steps now will put you in a position to be successful in 2013. And engage your local FS crop specialist; he or she has the expertise and tools to help position you for success.

The readiness to put this year behind us and move into next year is as high now as it has ever been. Take steps now to maximize yield potential by applying the necessary fertilizer with products that keep the fertilizer in the form that the plant needs, while incorporating weed control management systems that include fall applications, residuals, and proper rates of glyphosate. This past summer, fungicide applications were eliminated on some acres; however, utilizing fungicides to control disease will be an important input decision for the 2013 cropping year. Regardless of what you

Jeff Bunting is GROWMARK’s crop protection marketing manager. His email address is jbunting@growmark.com.

USDA projected food prices in 2013 could increase by 3 to 4 percent. Elsewhere, GDP growth in China could ease from 9 percent to 7.5 percent while the forecast in Europe called for less than a half percent growth in GDP next year compared to a half percent decline this year. “That tends to put a damper on the outlook for exports,” Kliesen said. The economy also is expected to be restrained by a high unemployment rate that was projected to average 8.1 percent this year, 7.8 percent next year, and 7 percent in 2014. The typical unemployment rate in “normal” economic conditions previously was 5

percent to 5.5 percent. Kliesen said the new normal unemployment rate could be 6 percent. The farm economy has been strong due to high commodity prices, but Kliesen noted the drought caused many ag bankers to temper their outlook for farm income this year compared to last year. Elsewhere, the Federal Reserve Bank of Chicago reported the drought isn’t expected to put downward pressure on farmland prices. But the market was projected to level off. The value of good farmland in Illinois in the second quarter increased just 1 percent compared to a 15 percent rise the past year.

Economy projected to remain sluggish in 2013 BY DANIEL GRANT FarmWeek

Economic conditions in the U.S. aren’t expected to improve dramatically anytime soon. Kevin Kliesen, business economist at the Federal Reserve Bank of St. Louis, last week projected economic growth will remain sluggish in 2013 and possibly into 2014. “The economy continues to improve,” Kliesen said last week at the Doane ag outlook conference in St. Louis. “But the gains continue to be fairly lackluster.” The gross domestic product (GDP) increased by 1.3 percent in the second quarter. It is projected to increase 1.7 percent in the third quarter, 1.8 percent in the fourth quarter, and 1.7 percent in the first quarter of 2013, Kliesen reported. Should those gains occur, the GDP would post increases in at least 14 consecutive quarters. However, the gains are well below the historic average annual increases of 3.25 percent. “I expect the sluggish economy to persist in 2013,” Kliesen said. High oil and food prices could continue to weigh on the economy. Oil prices next year are expected to average more than $90 per barrel while

Iowa farmland fetches $21,900 per acre

Farmers who are amazed at high farmland prices in Illinois ought to take a trip across the Mississippi River into Iowa. An 80.47-acre tract of Iowa cropland sold Thursday for a whopping $21,900 per acre, reported Vander Werff and Associates, a 40year-old appraisal, auction, and real estate company. The per-acre price set a new record for Iowa farmland, the Des Moines Register reported. The prime farmland is located in Sioux County, near Boyden, in the northwest corner of the state. The land has a corn suitability rating (CSR) of 84.1, which is well

above the county average of 64.8. The CSR is comparable to the Productivity Index in Illinois. The land was purchased by local farmers, according to the newspaper. Iowa farmland with the highest soil productivity ratings are concentrated mostly in the north-central portion of the state, where county CSRs average between 70.4 and 84.7. Good quality land in northwest Iowa apparently is less abundant and therefore attracts staggering bids. Three other farmland sales in Sioux County in the past year brought in an average of $18,500, $19,100, and $20,000 per acre.

Page 11 Monday, October 29, 2012

PROFITABILITY Corn Strategy

CASH STRATEGIST

Ethanol’s drag on corn prices Corn demand to grind into ethanol typically starts soft at the beginning of the marketing year. Demand tends to be weakest at that time because of softer gasoline demand at the end of the summer driving season and ethanol producers move to pare inventories. From the low point in the fall, the grind tends to increase into late spring/early summer. Although during the last couple of years there’s been a bit of a drop off in the late winter/early spring period, before rebounding again into the summer driving season. This year, a number of elements are coming together that may undermine ethanol demand and the corn grind to produce it. First and foremost is the ongoing weak profit margins tied to both high corn prices and generally weak ethanol prices. Tight corn supplies will be a continued feature going forward as well. Earlier this spring, a few ethanol plants were shut down because of plant margins, corn availability, and high corn prices. Just this past week, two more plants were shut down because

of poor margins, one in Georgia and one near St. Louis. Since the beginning of the year, profit margins have been poor, especially for some of the older, more inefficient plants. That doesn’t appear to be ready to change with weak gasoline prices keeping pressure on ethanol prices and firm cash corn prices. An added problem ethanol may face this year is more import competition. Brazil’s sugar crop in the main center/south region is expected to be as much as 12 percent larger than last year. The prevailing wisdom is that a larger part of the sugar cane crop will be allocated to ethanol because of soft sugar prices too. That will allow more sugar to be processed into ethanol, freeing up more for export. One analyst is expecting Brazilian ethanol exports to increase as much as 30 percent in the coming year. Much of that will be destined for the U.S. because of U.S. Environmental Protection Agency credits for advanced biofuels that make Brazilian ethanol competitive here. While the situation is not so dire as to suggest USDA’s current 4.5-billion-bushel corn grind for ethanol (needed weekly grind) is overstated, it does suggest news and sentiment in this sector may be more negative over the coming year.

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Cents per bu.

ü2012 crop: The trend has shifted sideways on December 2012 futures. They continue to test critical support at $7.32. If that is violated, December could test $7.05 again. Still, we prefer to wait for December futures to trade above $7.70 before making catch-up sales. ü2013 crop: Use rallies to $6.40 on December 2013 futures for catch-up sales. We could use a push to $6.50 to add another increment. vFundamentals: The corn market lacks fresh news to spark higher prices, and what surfaces has more of a negative bias. Weekly export sales remain lackluster, confirming world demand for U.S. corn is soft. Still, weather in South America is garnering attention, especially the wetness in Argentina. Corn planting there is only 37 percent complete, compared to 55 percent last year. That could cause some acres to be switched to soybeans. Slower progress in northern Brazil could delay harvest and impact their second-crop corn.

Soybean Strategy

ü2012 crop: The trade was caught off guard by export sales being switched from China to Taiwan and Thailand. Still, demand remains robust. Continue to wait for a move back above $16.50 on January futures before making catchup sales. ü2013 crop: With the short-term trend having turned up, patience should be rewarded. But use a rally above $13.60 on November 2013 futures for catch-up sales. We may add another increment at that level as well. vFundamentals: Soybean demand remains good, but the market is lacking “splashy” news that triggers the speculative fever that brings rapid gains. Export shipments remain robust, with this year’s shipments 52 percent ahead of last year, and 30 percent ahead of the record pace set two years ago. Crush demand remains good as well, with no sign of let-up for meal

demand. Brazilian planting is a little behind, and it is just starting in Argentina. Weather continues to be too dry in northern Brazil and too wet in Argentina.

Wheat Strategy

ü2012 crop: Wheat remains in a choppy, sideways pattern, as it struggles to gain upside momentum. For the trend to turn up, Chicago December futures need to close above $8.80. Further resistance lies at $9. Use rallies to $8.80 for catch-up sales. ü2013 crop: Make catch up sales with Chicago July

futures trading above $8.65. Check the Hotline frequently; we could add a sale if it pushes to $8.75. vFundamentals: At times the wheat market strengthens on optimism about future export demand. Competition from the Black Sea area has abated with wheat supplies running low in Russia and Ukraine. Europe is expected to replace those supplies as there is no abundant extra supply in Europe, which eventually could push business to the U.S. The trade also keeps an eye on dry conditions in Australia and wet conditions in Argentina.

FarmWeek Page 12 Monday, October 29, 2012

perspectives

Rural votes matter

Exercise your voice for agriculture — vote Nov. 6 We are the voice of agriculture. With the issues farmers face in agriculture, it is crucial to have a strong voice. Making our voice heard is extremely important and is becoming increasingly so. Farming not only is our business but our way of life. It needs to be protected. What can you do? Be informed and stay up to date on agricultural issues. Establish a good working relationship with your legislators and keep in contact with them. Vote on issues affecting agriculture. It is our responsibility! I encourage everyone to get involved! An easy way to get involved is by joining FB ACT, the Farm Bureau Agricultural Contact Team. Visit {www.ilfb.org} for more information on becoming an FB ACT member. Grassroots involvement, such as FB ACT, influences lawmakMONICA ers’ decisions made in Springfield and Washington, D.C., affecting STEVENS your family farm. Let your voice for agriculture be heard. I grew up on a cattle farm and started raising cattle when I was in 4-H. Raising cattle taught me numerous things that made me into who I am. The proposed restrictions in federal child labor law would have directly affected children raised on a farm. That was extremely concerning to me. As an FB ACT member, I received an email notice of an action request to contact my legislator. In response to the request, I emailed my legislators to help them understand how the proposed changes would have negatively affected children growing up on family farms. Fortunately, the Department of Labor withdrew the proposed changes. As a woman raising cattle, I am actively involved in production agriculture. I need to be represented, and my voice needs to be heard. Making sure my opinions matter is important. After graduating from college, I became a member of Knox County Farm Bureau. My advocacy of agriculture has increased over the past 10 years. I proudly represented District 4 as a representative on the Illinois Beef Association for the checkoff division from 2005 to 2011. For 11 years, I served on the Knox County Cattlemen’s Association and held the positions of president and vice president. Promoting beef and educating consumers about beef and the beef industry are true passions of mine. In 2009, I was elected the Illinois Farm Bureau Young Leader Committee District 8 representative. Currently, I serve as chair of the Young Leader State Committee. Agriculture is my passion. I am truly blessed for the opportunities and experiences I have had in agriculture. Through my experiences, I have found my voice. Whether your passion is in raising cattle, or growing corn or soybeans, be the voice for agriculture. Let your voice for agriculture be heard. Vote in November! Your voice. Your vote. You are the voice of agriculture. Monica Stevens of Altona, Knox County, chairs the Illinois Farm Bureau Young Leader State Committee.

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The red and blue highlighted U.S. map we see so frequently as election time nears can be disheartening for rural voters. They may rightly begin to wonder if rural votes make a difference in any race where metropolitan areas exist. LINDA JOHNSON The answer is “yes.” guest columnist For example, President George W. Bush won the rural vote in 2004 by 19 points. In 2008, President Barack Obama performed unusually well in rural areas, losing there to Sen. John McCain by just eight points. That means 9 million rural voters cast their ballots for our current president. During this election cycle both presidential candidates frequently have been seen in states that have large rural regions. Both are well aware that rural country roads are an important part of the road map that leads to the White House. A recent poll for the Center for Rural Strategies showed 54 percent of rural voters favored candidate Mitt Romney. Obama knows he needs to win as many votes as he can in rural areas in 2012 to keep the margins tight again. Swing states that were polled are Colorado, Florida, Iowa, Nevada, New Hampshire, North Carolina, Ohio, Virginia and Wisconsin. The Senate is another battleground where rural votes matter. Control of the Senate may well be determined by rural voters in Indiana, Maine, Montana, Nevada, Ohio, North Dakota, Virginia, and Wisconsin. All of these states are in the toss-up column, according to most political pundits. In 2010, two-thirds of the nation’s most competitive House races were in rural America. Current polling shows between 24 and 26 House seats are in the toss-up category and about 30 races are leaning to one party or the other. Do you live in one of the states that will determine control of the House? They are Arizona, California (three seats), Colorado, Connecticut, Florida (two seats), Illinois (two seats), Massachusetts, Maine, Michigan, Minnesota, Nevada, North Carolina, New

Hampshire, New York (four seats), Ohio, Pennsylvania, Rhode Island, Texas, and Utah. Eleven states have gubernatorial races this year. The rural vote is expected to make a big difference in three that are in the toss-up column: Montana, New Hampshire, and Washington. Do rural votes really make a difference? Just ask Wisconsin Gov. Scott Walker, who faced a tough recall election earlier this year. While he lost the city vote, he won his recall election because of rural and other non-urban voters.

Just ask former Reps. Betsy Markey of Colorado, Debbie Halvorson of Illinois, Frank Kratovil of Maryland, John Boccierri of Ohio, and Steve Kagen of Wisconsin if rural votes matter. They all lost their House seats in 2010. It is a fact that Democrats normally pick up a big vote in the cities. And Republicans usually pick up a big vote in the suburbs. But the rest of story is that the rural vote provides candidates from both parties the winning edge when the polls close. So remember, every vote from rural America is important. Cast your vote for the candidates you want to represent you. It is your patriotic duty, and, in the end, you just might be the deciding vote. Linda “L.J.” Johnson is director of policy implementation programs at the American Farm Bureau Federation.