FarmWeek October 3 2011

chinA is poiseD to increase its imports of ag products from the U.S., IFB’s vice president learned during a recent trip. ...........5

eURopeAn AnD American scientists share the same goal of having far mers g row biomass crops. ...............................................8

U.s. poRK pRoDUceRs’ recent run of profitability could come to an end soon, according to the USDA’S quarterly hogs and pigs report. ...............9

Monday, October 3, 2011

Two sections Volume 39, No. 40

AFBF, Durbin plans part of growing farm bill mix

BY MARTIN ROSS FarmWeek

As bipartisan farm state senators last week touted a new budget-conscious plan aimed at bolstering 2012 farm bill revenue protections, Farm Bureau leaders submitted what they deem the best policy options for producers nationwide.

A 12-member congressional “super committee” is expected to submit its blueprint for at least $1.2 trillion in long-term federal savings

by Thanksgiving. That’s hastened review of farm bill options that can meet deficit reduction targets while preserving a viable producer safety net.

Last week, American Farm Bureau Federation (AFBF) submitted its “five most important priorities” for the 2012 farm bill: commodity programs, conservation programs, crop insurance, research, and rural development.

At the same time, AFBF recognized anticipated cuts “will primarily have to come from the commodity, conser-

vation and nutrition titles, as well as from crop insurance,” which comprise 99 percent of funding under House/Senate Ag Committee jurisdiction.

AFBF leaders recommended taking 30 percent of any required ag reductions each from commodity, conservation, and nutrition programs (largely in administrative spending) and 10 percent from the crop insurance program.

“We are not suggesting a 30 percent cut in the $65 billion commodity program baseline, but rather that 30 percent of the share of total cuts finally agreed to by the House and Senate Ag Committees,” they stressed.

AFBF President Bob Stallman noted any policy proposal must be “wrapped around” the ag budget number set down by the super committee or, should Congress reject the committee plan, possibly far greater cuts. That target remains a “huge unknown,” he said.

“Frankly, there’s a huge amount of uncertainty as to

how this super committee process is going to play out relative to the farm bill and the budget,” Stallman said in an RFD Radio-FarmWeek interview. “Everyone’s just going around just kind of

scratching their heads, trying to get prepared for whatever may happen quickly. This is a really fluid situation, and a lot of proposals are being put forth.”

Meanwhile, U.S. Sen. Dick

Durbin, a Springfield Democrat, proposes a new Aggregate Risk and Revenue Management (ARMM) program which would “build on” the Average See Farm bill, page 2

U.S. Rep. Jim Costa (D-Calif.), ranking Democrat on the House Ag Rural Development Subcommittee, tries out a tractor cab at Stone Seed near Springfield following a 2012 farm bill hearing on the University of Illinois-Springfield campus. Costa and colleagues checked out global positioning systems at the seed operation. For more on the farm bill and broadband, see page 4. (Photo by Martin Ross)

Corn stocks larger than expected: crop prices slide

Periodicals: Time Valued

BY DANIEL GRANT FarmWeek

Crop prices, which have been trending lower in recent weeks, took it on the chin again Friday as USDA released a bearish grain stocks report.

Corn stocks in all positions were pegged at 1.13 billion bushels. Soybean stocks were projected at 215 million bushels.

“The soybean number was slightly friendly, but the overriding factor is the corn report,” Jack Scoville, market analyst with Prices Futures Group, said during a teleconference hosted by the CME Group.

“It (the corn stock estimate) is significantly above the average trade guess.”

Scoville and Jerry Gidel, market analyst with NARMS Futures Trading, believe the main factor for larger-than-expected corn stocks is a reduction in feed use.

Corn exports also have been soft, according to Scoville.

“Feed is the primary category that influenced the stocks number,” Scoville said. “$7-plus corn was starting to price itself out of feeders’ capacity.”

Corn futures prices subsequently tumbled in FarmWeekNow.com the past month Commentary and details of the grain stocks report are at from $7.75 per FarmWeekNow.com. bushel to down near $6. Soybean futures during the past month took a similar tumble from near $14 to the mid-$12 range.

Prices were limit-down Friday morning after the release of the bearish report.

“That’s a pretty significant downmove,” Scoville said. “I’ve always felt we could hold $6 (for December corn) and I still think it’s possible.”

The markets also could be pressured in coming months if expectations of larger

FarmWeek on the web: FarmWeekNow.com

corn plantings in South America come to fruition.

Soybean planting in Brazil so far is off to a slow start due to dry soils, Scoville reported.

The crop markets, however, could be nearing levels that could reignite demand. “(Corn) values at this point are not as expensive in the world market,” Gidel said.

China previously made a large purchase of U.S. corn on the heels of a bearish stocks report.

USDA on Friday also released its small grains annual summary report that showed all wheat production this year totaled 2.01 billion bushels, down 9 percent from last year. The average U.S. wheat yield was 43.9 bushels per acre while the Illinois wheat yield was unchanged at 61 bushels per acre, up 5 bushels from the previous two years.

U.S. oat production this year was a record-low 54 million bushels, down 33 percent from 2010.

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

FarmWeek Page 2 Monday, October 3, 2011

Quick takes INJUNCTION DENIED — Syngenta last week lost a bid to temporarily force Bunge North America to accept its GMO AgriSure Viptera corn until a lawsuit over the issue is resolved.

Syngenta sued Bunge recently, claiming the grain company’s decision not to accept the new insect-resistant corn was unlawful. The product has not yet received Chinese import approval, and Bunge officials fear inclusion of any of the minor amount of Viptera being harvested this year could lead to rejection of export shipments.

In August, Bunge posted a notice on its website and at several grain delivery locations that it was “unable to accept” grain produced using the Syngenta product.

Iowa U.S. District Judge Mark Bennett called Bunge’s move “a legitimate and reasonable business decision.”

Bennett ruled Syngenta has “no likelihood of success on the merits of its claims,” and denied the company’s request for a preliminary injunction against Bunge. “The injunction would impose prodigious costs on Bunge for a situation that Bunge did not create,” his ruling stated.

MAN SURVIVES GRAIN BIN ENTRAPMENT — A 43-year-old man from Colombia who was trapped in a corn bin for nearly two hours last week, survived as rescuers used a special tube and shoveled corn to free him.

The incident occurred at Center Ethanol Co. plant in Sauget, Lee News Service reported.

The man reportedly entered the 300,000-bushel grain bin for routine maintenance. It held 80,000 bushels of corn when the grain suddenly shifted and buried the man up to his waist.

Rescue crews lowered a tube around the man to protect him from the grain and then shoveled corn away from his body to free him.

WOOLLY BEAR WEATHER PREDICTIONS — The woolly bear caterpillars are out. Have you checked their stripes?

The amount of black on the woolly bear’s bristle coating forecasts the severity of the coming winter, according to superstition.

The theory is that the longer the black segments on the ends of the caterpillar, the harsher the coming winter will be, said Rhonda Ferree, University of Illinois Extension horticulture educator.

From year to year, the amount of black hair on woolly bear caterpillars varies, but those differences are caused by age and wetness, according to Donald Lewis, an Iowa State University entomologist. Older caterpillars have more black than young ones, and caterpillars that fed and grew in an area where the wetter fall weather have more black hair than those from dry areas.

(ISSN0197-6680) Vol. 39 No. 40

October 3, 2011

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

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government

Lawmakers mulling further corn ethanol constraints?

more corn immediately available for feed use.

Congress instead should “maintain the The ethanol industry, already girding up integrity of the RFS to help drive job crefor life after the ethanol tax credit, may face ation and wean America from its addiction to one more key challenge to future biofuels foreign oil,” he said. demand and development.

The proposal arises amid indications ConLegislation reportedly being drafted by gress will allow the 45-cent-per-gallon voluReps. Bob Goodlatte (R-Va.) and Jim Costa metric ethanol excise tax credit (VEETC) to (D-Calif.) would alter the existing Renewable expire on Dec. 31. With loss of the key gasoFuels Standard (RFS2), which mandates 15 line blenders incentive, Loos maintained billion gallons RFS2 fuel of corn requirements ethanol and 36 “are critical to billion gallons ‘ It seems like people would kind of continuing the of total biofugrowth in biostep back and see what impact losing fuels.” els use by 2022.

VEETC Jan. 1 is going to have on the Dinneen A congresalso cautioned ethanol industry and the markets.’ sional aide that if this reported the effort were to measure would be successful, — Dave Loos “reduce the the loss of Illinois Corn Growers Association federal manethanol in the date to use fuel supply fuel ethanol would lead to when corn increased supplies are tight,” in an effort to keep livepump prices. Given the “disproportionate stock feed prices lower. That move “would impact on food pricing exerted by energy and do nothing to address the concerns raised by fuel prices,” that would exacerbate concerns the livestock constituents of Reps. Goodlatte about rising food prices – purportedly a key and Costa,” Renewable Fuels Association concern for corn ethanol critics.

President Bob Dinneen argued.

“It seems like people would kind of step Illinois Corn Growers Association Techback and see what impact losing VEETC Jan. nology and Business Development Director 1 is going to have on the ethanol industry Dave Loos told FarmWeek his group would and the markets, and take a deep breath and monitor Capitol Hill discussions to deterwait and see how all that sorts out,” Loos mine if the measure will “grow any legs” and said. thus require action.

“What we’re seeing right now are the marAn RFS “waiver trigger” based on the ket’s working. If gasoline prices soften, you corn stocks-to-use ratio would not affect might see ethanol throttling back. You’re also prices for livestock producers, nor would seeing corn prices dropping a bit. To us, the what he called a “knee-jerk policy” make market’s sorting a lot of this out.”

BY MARTIN ROSS FarmWeek

Farm bill Continued from page 1 Crop Revenue Election (ACRE) program.

ARRM could save $19.8 billion over the next 10 years, versus reauthorization of the current farm bill, according to it’s bipartisan sponsors.

The plan would consolidate direct payments, price support programs, and other existing supports with what the senators termed “a defensible revenue protection program based on actual planted acres.” ARRM would replace the Supplement Revenue standing disaster assistance program, contributing to even greater theoretical savings, they held.

Like the National Corn Growers Association’s Agriculture Disaster Assistance Program (ADAP) proposal, ARRM would trigger ACRE-style payments based on yield losses at the crop reporting district level, rather than on state-level losses. Marketing loan programs would remain in place under the plan.

Stallman stressed “the jury’s still out” on ARRM. The plan offers specifics for future revenue security but “combines and does away with a lot of other things in terms of farm policy that we think are important,” he said.

Because research and rural development programs are such a minor part of the budg-

et, AFBF urged lawmakers to maintain those programs at current funding levels. But, with administrative spending related to the Supplemental Nutrition Assistance Program (food stamps) and child nutrition programs expected to exceed $50 billion in the next ten years, AFBF suggested cuts there could generate significant savings with little or no impact on program benefits.

Following a House Ag Rural Development Subcommittee hearing last week in Springfield (see page 4), subcommittee Chairman Tim Johnson, an Urbana Republican, reiterated determination by House-Senate ag committee leaders to “maintain our jurisdiction” over specific program spending.

Subcommittee ranking Democrat Jim Costa (D-Calif.) noted “many of us have concerns” about mounting ag funding pressure. He noted the 2008 farm bill was authorized at a significantly lower cost than 2004 legislation, thanks in large part to improved farm prices and subsequently “less utilization” of countercyclical safety net programs.

“Clearly, the 2012 farm bill is going to be less in authorization than the 2008 bill,” Costa told FarmWeek. “There’s a challenge with deficits we have to cut back to get our financial house in order. Hopefully, we’ll do that in a bipartisan fashion.”

Page 3 Monday, October 3, 2011 FarmWeek

GoverNmeNt

Lock fee proposal dampens shippers’ hopes

BY MARTIN ROSS FarmWeek

With President Obama publicly on board and policymakers pushing to double U.S. exports, Waterways Council Inc. (WCI) Vice President Paul Rohde sees producers and shippers “posi-

FarmWeekNow.com Listen to Matt Kaye’s report on the lock fee proposal at FarmWeekNow.com.

tioned well” to lock in key navigational improvements.

However, the president’s plan for funding long-delayed Midwest lock construction could rock the boat.

Obama has highlighted river improvements as part of his “American Jobs Act.” Construction of seven Upper Mississippi-Illinois River locks

was approved in 2007, but federal funding is dependent on matching funds from the industry’s Inland Waterways Trust Fund, which has seen waning revenues.

The White House proposes to supplement the 20-cent-per-gallon barge fuel tax that feeds the fund with a new fee for all tow operators and a second fee for barge tows moving through each lock. Shippers instead support a hike in fuel taxes to replenish the fund, but the U.S. House’s no new taxes directive seemingly has blocked that option.

Obama’s plan would more than double the amount of taxes and fees on shippers — merely “one beneficiary of our nation’s waterways,” WCI President Michael Toohey warned. He argues higher shipping costs and possible freight movement to costlier modes of transportation could “disrupt the frag-

ile economic recovery” by raising consumer prices.

He said Obama’s plan “fails to include the necessary project delivery and other reforms that must be a part of a comprehensive investment strategy for our waterways.”

“The folks who pay into the trust fund understand that they have to have a self-imposed tax increase,” WCI’s Rohde told FarmWeek. “They’re calling for that, with the provision that river users and the producers and manufacturers who move things by barge have more say in prioritization and planning.

“They want more of a partnership between private and public sectors, which is what Obama has talked about continually as what we need in shaping policy.”

The fee proposal comes as the administration recognizes navigation

needs ignored “when we were dealing with economic stimulus a couple of years ago,” Rohde noted.

In a FarmWeek-RFD Radio interview, Ag Secretary Tom Vilsack called Obama’s infrastructure push “good news to folks in rural America who are dealing with roads that need repaired, bridges that need repaired, dams and water systems and ports that need repaired,” as well as a boost for “economic opportunity.”

Carpenters District Council of Greater St. Louis business representative Dale Roth lobbies Congress alongside Farm Bureau for “anything that creates jobs” — especially lock and bridge funding.

“There are plenty of jobs, plenty of projects out there if we can just get the funding for them -– if Congress will get its priorities straight,” Roth said.

State estate tax expected to put millions in state coffers

BY KAY SHIPMAN FarmWeek

The Illinois estate tax again is generating revenue for the state and is expected to add millions to the state’s revenue stream.

The Illinois Department of Revenue (DOR) estimated the state estate tax will generate about $22 million each month based on his-

toric data and information from the Illinois attorney general’s staff, said Sue Hofer, DOR spokesman.

Under state law, Illinois Attorney General Lisa Madigan administers the state estate tax.

Last month, the tax generated about $3 million in revenue, according to Hofer.

Because of legal procedures,

there had been a delay in reporting revenue since the estate tax was reinstated on Jan. 1.

State estate tax revenue is included in a monthly revenue report that is available online at {http://tax.illinois.gov}.

Currently, Illinois allows a $2 million individual exemption for estates compared with the federal

estate tax exemption of $5 million per individual.

Illinois Far m Bureau supports having the state and federal exemption being the same so fewer family far ms and other small businesses are faced with a large tax bill when enterprises are passed down from one generation to the next.

Farm-level trigger part of American Soybean Association farm bill plan The American Soybean Association (ASA) has officially joined the ag policy debate, proposing to replace current farm programs with “Risk Management for America’s Farmers” (RMAF).

The proposed program would partially protect revenue losses that result from low prices or reduced yields.

RMAF would establish commodity-specific revenue benchmarks for individual farmers, based on historical yields and prices, and compensate growers for a share of the difference when onfarm revenue falls below a

percentage of the benchmark.

All planted and prevent plant acres would be covered under the plan, and the program would complement crop insurance –- another important component of the ASA program.

“ASA supports a risk management program that partially offsets shallow revenue losses at the farm level not covered by crop insurance,” ASA Farm Bill Task Force Chairman Rob Joslin said.

“Farmers told ASA they want a program that operates off a farm-level revenue loss

trigger rather than a state, crop reporting district, or even a county loss trigger.

Farmers told us that the use of a state-level revenue loss trigger in the current Average Crop Revenue Election (ACRE) program was one of the problems they saw in that program that resulted in low participation rates.”

Because the proposal replaces current programs, this plan would result in savings “that help agriculture contribute its fair share to deficit reduction,” ASA stated.

RMAF would provide rev-

enue guarantee to producers of non-irrigated commodities against losses below 90 percent of their benchmark down to 75 percent of benchmark. A 10 percent revenue loss is required before the program kicks in.

A producer’s revenue benchmark is calculated based on the higher of the producer’s actual production history (APH) yield, the producer’s five-year Olympic average APH yield, or 80 percent of county yield, times a five-year Olympic average of National Ag Statistics Service season average prices.

A producer’s actual revenue for a commodity is calculated based on actual yield times a national average price received by farmers during the first four months of the marketing year, plus net crop insurance indemnities received.

Payments to a qualifying grower equal 85 percent of the difference between the revenue guarantee and actual revenue.

Further details on the ASA plan can be found online at {www.soygrowers.com/policy/ASA-RMAF.pdf}.

USDA announces plans for rural 911, emergency communications USDA is working to change federal regulations that will help rural communities obtain advanced emergency communications services, including 911 access, U.S. Agriculture Secretary Tom Vilsack announced recently.

The changes will help rural communiColleen Callahan ties obtain next-generation 911 services.

“A change in the rules would make it possible for Rural Development to help rural first-responders to secure

the tools they need to maintain mission-critical voice and broadband service during times of emergency or during natural disasters,” said Colleen Callahan, state director for Rural Development.

Rural Development has supported local efforts to upgrade local emergency call centers through the agency’s community facility grant program.

In Illinois, grants were awarded to Gibson City and to Pulaski and Saline counties for 911 equipment to be used at local call centers that forward emergency information to fire, police, and ambulance providers.

Recently in the Federal Register,

USDA published interim requirements for telecommunications loan program eligibility on financing the construction of interoperable, integrated public safety communications networks in rural areas. Funding for the program will be provided by Rural Development through the Rural Utilities Service (RUS).

The new eligibility criteria would allow USDA to leverage public and private resources to speed deployment of dual-use public safety/commercial wireless networks and finance enhanced 911 capabilities.

This would improve providers’ ability to precisely locate rural wireless

911 calls, contact 911 via text message, or send emergency responders photos or videos of crime scenes or accidents.

The new regulation also would give RUS the ability to finance wireless upgrades for public safety and security.

In the last two years, Rural Development has awarded broadband funding in Illinois to Shawnee Telephone Co., Alhambra-Grantfork Telephone Co., Woodhull Telelphone Co., Oneida Telephone Co., Wabash Telephone Cooperative, Convergence Technologies, and Norlight Telecom, which is now part of Windstream Communications.

FarmWeek Page 4 Monday, October 3, 2011

the farm bill

Panel seeks answers to ‘arrest’ rural decline

BY MARTIN ROSS FarmWeek

Fostering public-private partnerships and effectively leveraging available federal dollars to expand broadband capabilities is crucial in “arresting the decline of rural America,” according to U.S. House Ag Rural Development Subcommittee Chairman Tim Johnson.

The Urbana Republican presided over a 2012 farm bill field hearing in Springfield that focused on the impact of and need for broadband access in rural communities, education, health care, and farm and Main Street businesses.

The rural development title of the farm bill, a key vehicle for loan and other broadband programs, is a “critical component” of the measure, especially in ensuring “efficient use of existing dollars” amid mounting deficit pressure, Johnson said.

“We’ve seen a really ineffi-

cient implementation of the Internet dollars,” despite allocation of $2.5 billion for rural broadband in 2009 stimulus legislation, he charged.

USDA’s current broadband loan application process is “completely out of control,” and as a result, “a lot of rural areas won’t even apply because of the hassle,” Johnson told reporters. Perhaps 5 percent of that funding thus “has emerged from the application process,” he said.

Amid uncertainty about prospective farm bill spending, Johnson stressed available dollars for rural development “remain in flux.” He and his colleagues chided USDA for failing to address conflicting federal criteria for “rural” program eligibility that threaten to divert limited broadband funding to urban or suburban areas.

McDonough Telephone Cooperative government affairs

Producers wired in on technology issues U.S. House Ag Committee members climbed into the tractor cab and put themselves in farmers’ shoes as they considered the next farm bill’s impact on rural technology development.

For specialty meat purveyor John Wood, that means growing online demand and assuring a satisfying consumer experience in the virtual market.

For Central Illinois grower Doug Wilson, it means a healthier community and the bandwidth needed to maximize input efficiency and crop yields.

And amid increased commodity price volatility, Randy Hultgren, Republican Ag Committee member from Winfield, sees rapid information delivery as an increasingly key component in producer risk management.

“I’ve talked to producers who say they are so reliant on technology in being part of the hedging process — knowing what prices are going to be, knowing their product’s going to meet a need at a price that will fit their requirements,” Hultgren told FarmWeek following a House Ag subcommittee hearing on rural infrastructure (see accompanying story).

Wilson, former USDA Rural Development state director for Illinois, argues that today, PCs, smartphones, and farm global positioning (GPS) systems are “every bit as important in our lives” as tractors or combines. It’s thus crucial lawmakers “don’t forget about rural America as we move forward with budget debates in the farm bill and beyond,” he said.

Regulatory care also is vital: He noted concern that proposals by wireless provider LightSquared to boost broadband capabilities via high-powered cellular base stations could interfere with satellite GPS signals.

“There’s more and more pressure on bandwidth,” he said.

He stressed the need for improved rural cellular service but warned federal officials against rushing approvals that could force farmers to “retool their equipment and technologies.”

Broadband improvement also is crucial to cutting-edge ag marketers such as John Wood, CEO of U.S. Wellness Meats, a producer-based online retailer. Over the past 11 years, the company has grown from an initial 45 orders in late 2000 to being the nation’s largest shipper of grass-fed beef and other products via the Internet {www.uswellnessmeats.com}.

Wellness Meats, launched with a meager dial-up Internet connection, now has a far more efficient “3 megabytes down/2 megabytes up” connection. Woods nonetheless argues further improvements are key to expanding the rural customer base.

“I’d literally die for 10 megabytes down and up,” Woods told FarmWeek. “In the Washington Beltway, they have 25 megabytes down and up. That would be heaven.

“The beauty of online technology is you can create a huge organization in 10 to 15 years of hard work and good customer service that can be in any number of venues. Whole Foods and these large mainline health food stores don’t cover rural America. We can cover any area in the entire country.” — Martin Ross

From left, U.S. House Ag Rural Development Subcommittee Chairman Tim Johnson, an Urbana Republican, and Ag Committee members Randy Hultgren, a Winfield Republican, and Bobby Schilling, a Colona Republican, hear testimony from Les Fowler, government affairs manager with McDonough Telephone Cooperative.

(Photo by Martin Ross)

manager Les Fowler told Johnson’s panel USDA Rural Utilities Service (RUS) financing is an important tool in building broadband capabilities “critical to providing access to economic growth, job creation, distance learning, health care, and national security in rural America.”

A $14 million RUS loan helped the Western Illinois coop deliver broadband technology to all its rural customers.

Fowler urged lawmakers to support a “vibrant” RUS in the farm bill.

Meanwhile, the Federal

Communications Commission (FCC) is expected soon to rule on proposals to reform the Universal Service Fund, which helps provide public telecommunications service, and “intercarrier compensation” for network providers. The outcome of FCC’s review will determine “our ability to maintain the networks we have today and continue to deploy broadband to the rural areas,” Fowler said.

Rep. Jim Costa (D-Calif.), the ag subcommittee’s ranking Democrat and a third-genera-

tion California farmer, hoped the Springfield hearing would help define “how we can do a better job to help rural America compete” in a global economy.

“Farmers have to compete with commodities grown everywhere around the world,” Costa told FarmWeek during a posthearing tour of Stone Seed near Springfield.

“The ability to have access to the Internet, to have broadband that allows you to determine market prices, the ability to use management tools on your farm are all critical to your success.”

‘Telehealth’ offers hospital savings Technology that saves lives also saves crucial health care dollars, a Southern Illinois hospital chief maintains.

As one of the state’s 15 small, federally designated critical access hospitals, Staunton’s Community Memorial Hospital is heavily dependent on Medicare reimbursements that don’t meet costs, operates on often-inadequate “economies of scale,” and faces “tremendous government mandates,” according to Sue Campbell, the hospital’s administrator.

The Macoupin County facility nonetheless remains on the move: Campbell said she hopes the hospital can be renovated in the next 18-24 months. Ongoing technology development should help “free up capital” for the project, she testified before a recent U.S. House Ag Committee panel in Springfield, arguing life-saving technology “is also cost-saving technology.”

Community Memorial transmits patient X-rays and scans via the Internet for analysis in Springfield or St. Louis. Campbell notes “our ER gets overwhelmed with many behavioral health issues,” and high-tech capabilities quickly link emergency room personnel with outside mental health experts.

She sees future promise in adapting smartphones or tablets for improved verbal/visual communication between emergency responders and her doctors or even for consultation with outpatient residents. There’s also a need for improved broadband capacity as the hospital works to meet federal requirements for nationwide adoption of electronic medical records mandated under 2010 health care law.

Community Memorial’s five-megabyte fiber optic broadband link thus could use another five-megabyte boost, Campbell said.

“Many of our sister hospitals are staffing their ERs with mid-level providers (nurse practitioners, physician assistants, etc.) who have to access remote physicians for direction on medication or treatment,” she told FarmWeek.

“Our needs are just going to continue to grow. We need fast, dependable, secure Internet

access throughout the entire country. We’ve been fortunate to have a local provider that’s been able to bring fiber optics to our door. I think there are a number of smaller providers throughout Illinois who’d be happy to partner in these kinds of relationships.”

Community Memorial fully recognized its technical limitations in 2007, amid plans to replace its existing CAT scanner with a state-ofthe-art scanner that would allow more tests at a faster speed and with reduced radiation exposure.

The low-capacity “T1” broadband connection the hospital shared with the local high school and library would not have accommodated transmission of scanned images to regional hospitals, and Community Memorial partnered with Staunton cable provider Madison Communications to upgrade its connection.

Alan Kraus is project coordinator with Illinois Rural HealthNet, a non-profit group funded by the Federal Communications Commission that’s helping move small hospitals from T1 lines to high-capacity, low-cost 100-megabyte to 1-gigabyte networked connections.

A scan that takes 14 minutes at full bandwidth to transmit on a T1 line can be sent in a second over a 1-gig connection. That allows “real-time” analysis of tests by the local provider and the remote radiologist, Kraus said.

HealthNet’s aims to provide a “high-speed pipe” between rural hospitals and pediatric, neurological, or other specialists at large hospitals. “Cloud computing,” on-line sharing of resources and communications, could enable rural providers to interact directly with doctors at facilities such as Children’s Memorial Hospital in Chicago, Kraus said.

“What you see is the cost of doing this kind of thing actually starting to drop,” he told FarmWeek. “Now that we have the capability of moving things at high speeds, we can move forward and try out some of these applications that, in the end, will offer hospitals cost savings.” — Martin Ross

Page 5 Monday, October 3, 2011 FarmWeek

trade

Guebert: China poised to increase imports of ag products

BY DANIEL GRANT FarmWeek

Rich Guebert Jr., vice president of the Illinois Farm Bureau and a farmer from Ellis Grove, last month saw no signs of an economic slowdown in China during an eight-day trade mission there.

In fact, China is poised to increase its imports of ag products from the U.S., according to Guebert, who was part of a 30-member delegation of business, education, and political leaders from Illinois who traveled to China recently with Gov. Pat Quinn.

China last year surpassed

Canada to become the largest importer of U.S. ag products worldwide for the first time in history. China in 2010 purchased $17.5 billion worth of U.S. farm products, which accounted for about 15 percent of total U.S. ag exports, according to USDA. “They (the Chinese) have higher incomes, and they want to spend it on food and protein,” Guebert told FarmWeek.

The Illinois trade delegation met with Chinese officials and business leaders in Beijing, Hong Kong, and Shanghai.

Archer Daniels Midland Co. during the mission secured a

Taiwan inks Illinois grain purchase deal A 22-member delegation from Taiwan agreed to import additional Illinois corn and soybeans in 2012 and 2013 and signed letters of intent with the Illinois Corn Growers Association (ICGA) and the Illinois Soybean Association (ISA) last week in Springfield.

“The Illinois agriculture industry is dependent upon export agreements like this,” said Illinois Agriculture Director Tom Jennings.

The Taiwan Feed Industry Group signed commitments to buy 303 million to 413 million bushels of U.S. corn and 0.5 million to 0.75 million metric tons of corn byproducts. Illinois will supply 43 million to 59 million bushels of the corn. At current prices, the deal is worth $288 million to $393 million.

“Illinois farmers are pleased and encouraged by the sale of Illinois corn and corn products to the Taiwanese,” said Bill Christ, Illinois Corn Marketing Board chairman.

Representatives of Taiwan’s Vegetable Oil Manufacturers and Oilseed Processing Association signed similar letters to buy up to 118 million bushels of U.S. soybeans of which 14 million bushels, valued at $182 million, would come from Illinois.

“We look forward to building a stronger relationship with them (the Taiwanese), especially since more than half of our soybeans are exported to countries like Taiwan each year,” said Matt Hughes, ISA chairman.

This year, Taiwan is the sixth-largest export market for U.S. agricultural products and the fifth-largest market for U.S. corn and soybeans.

Central Illinois farmer, former elevator manager indicted in 2010 failure A Central Illinois farmer and a former elevator manager were indicted last week for their alleged part in the 2010 failure of a McLean County elevator, according to The Associated Press.

In May 2010, the Illinois Department of Agriculture suspended the grain dealer and grain warehouse licenses of Towanda Grain Co., after learning of financial irregulatories from the failed cooperative’s board of directors.

Robert Printz, a Fairbury farmer, and Timothy Boerma of Lincoln, the former elevator manager, were named in a 27-count federal indictment in Peoria.

Printz faces charges of mail fraud, wire fraud, bank fraud, and money laundering. Boerma faces charges of wire fraud, access device fraud, and making a false statement.

According to the indictment, the two men worked together to defraud the elevator, Printz’s creditors, and others.

The elevator, which had a combined storage capacity of 10.6 million bushels, was purchased and reopened by Bloomingtonbased Evergreen FS Inc.

sales agreement with China for the purchase of 6.6 million bushels of soybeans. Mission participants also heard of

one-quarter of U.S. soy production, the Illinois Soybean Association reported. USDA estimated 13 percent of all

policy of self sufficiency and was a net exporter of many ag products, including corn, appears to be unable to pro-

‘They (the Chinese) have higher incomes, and they want to spend it on food and protein . . . They also have a desire to import value-added products.’

— Rich Guebert Jr. Vice president, Illinois Farm Bureau

plans in China to open a new poultry processing facility that will process 70 million birds per year.

“They (the Chinese) are trying to increase livestock production,” which will boost China’s need to import feed grains and oilseeds, Guebert said. “They also have a desire to import value-added products.”

China last year was the top importer of U.S. soybeans, with purchases totaling about 825 million bushels or about

U.S. soy exports originate in Illinois.

China’s economy, which is the second-largest in the world behind the U.S., has been growing about 10 percent annually the past three decades.

Guebert saw no signs of an economic slowdown in China despite recent inflation there.

China’s economy, he said, appeared to be robust and moving forward.

Meanwhile, China, which for years had an economic

duce all its own food in the future due to an expanding population with a growing appetite for protein.

“I don’t believe China can raise enough food to support what its people want,” Guebert said.

Many other countries will attempt to fill that void to boost sales of farm products. The key to increasing the U.S. market share in China is to continue to build relationships, Guebert added.

Chinese influence growing?

African potential rising, but U.S. faces challenges

BY MARTIN ROSS FarmWeek

Amid continued socioeconomic challenges, widespread government corruption, and controversy over biotechnology, “Africa is still a mess, though it’s getting better,” said U.S. Grains Council (USGS) Chairman Wendell Shauman.

Indications are, those who invest in helping clean up that mess may enjoy future market gains on the emerging continent, according to the Warren County producer. Shauman was fresh from a USGS tour of Kenya and South Africa aimed at gauging African development and prospects for U.S. Wendell corn, sorghum, and distillers Shauman dried grain sales.

China’s gaining a key foothold in Africa. An agreement with South Africa grants China access to mineral resources, and China’s ramped up support for African food security and sustainable ag development, offering emergency grain aid and $16 million for Somalian famine relief.

China’s investing in infrastructure and African food production, ostensibly to help meet its own growing demands.

“They’re tying up (Africa’s) raw material demands,” Shauman said. “In many ways, they’re the colonialists of this era. I’ve decided they may be the best capitalists around.”

Russia, Korea, and Japan also are working

effectively to “tie up land” in Africa, he related.

Meanwhile, work is under way at Kenya’s Port of Mombasa –- East Africa’s largest port — to accommodate larger and more ships, in tandem with road improvements and expansion of airports within the region. That buildup in import/export capabilities is occurring as Africa faces a shortage of corn, according to Shauman, “a huge staple in their diet.”

Kenya’s crop is expected to come in more than a half-million metric tons short of last year’s harvest, and South Africans, current corn exporters, “know they’re going to run out,” he said. However, Africa’s almost exclusively reliant on white corn, and Shauman’s uncertain whether food security concerns will open a window for American yellow corn.

Continued resistance to biotech crops, fed by anti-GMO groups, poses a further challenge for U.S. exporters.

Kenya has passed a new “biosafety” law that allows importation of GMO grain, joining South Africa, Egypt, and Burkino Faso in “legalizing” GMOs. But Kenya faces a major election and legislative downsizing next year. Reportedly, Shauman said, “one of the quickest ways to get rich over there is to get elected to Parliament,” and a politically charged environment combined with activist pressure could muddy the GMO issue.

“One of the things these organizations will tell the populations over there is, ‘If you eat these GMO crops, you’ll be sterile – you won’t have any more kids,’” Shauman said. “It’s hard to combat that.”

FarmWeek Page 6 Monday, October 3, 2011

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Still no harvest to report in Winnebago County.

We had plenty of rain last week — 2.75 inches at our farm and 5 inches in the southeastern corner of the county. The forecast looks better, so hopefully, I can report on some combining in next week’s report. Have a safe week.

Leroy Getz, Savanna, Carroll County: Rain soaked the area for most of last week — 1.5 inches total. A little field activity was seen on Friday and Saturday (Sept. 23-24) but rain since has stopped harvest. High winds at 50 to 60 mph on Thursday blew things around pretty good. Trees are down and some cornfields where stalk quality was poor looked really bad Thursday night.

Ryan Frieders, Waterman, DeKalb County: It rained every day the past week. We have received more than 4 inches. No harvesting has been done and because of the cold, wet weather, the crops don’t seem to have matured much. We had very strong winds Friday that are predicted to bring a change in the weather pattern. Hopefully, we can catch a break and start harvesting soon.

Larry Hummel, Dixon, Lee County: The best laid plans of mice and men. The plan was for us to start harvest Monday (Sept. 26) and have about onethird of our beans out by Friday.

Reality changed that when it started raining on Sunday, with a little hail thrown into the mix, followed by rain on Monday and Tuesday. Then, a break in the rain on Wednesday and rain again on Thursday for a total accumulation of more than 3 inches. The hail on Sunday didn’t do too much damage to the beans that were ready to harvest. The pods were wet from some showers that came earlier, so loss from shattering was minimal — approximately a quarter to a third of a bushel to the acre.

Joe Zumwalt, Warsaw, Hancock County: Where did the corn go? Corn harvest is wrapping up for many producers in Western Illinois. Yields were all over the board, from 75 to 200 bushels per acre. While not many beans have been cut, those that have are better than expected. I have heard yields ranging from 30 to 70 bpa. A few tried tillage, but many are waiting for more rainfall before the rippers and chisels head to the field. Ripper points wear out pretty quickly when you’ve had less than an inch of rain in three-plus months. 2011 continues to be an interesting year.

Ken Reinhardt, Seaton, Mercer County: We had rain everyday from Saturday (Sept. 24) through Thursday. Amounts were less than an inch. It’s a running joke when my friend who takes a week’s vacation in the spring and fall to help farm, it rains. The wind blew Thursday afternoon with gusts in the 40 mph range. The corn we harvested was going down as we worked. Soybean harvest started during the weekend.

Tim Green, Wyoming, Stark County: It was a rainy week last week. Sunday and Monday (Sept. 25 and 26) we ended up with anywhere from 2.1 to more than 3 inches of rain in different parts of the county. It made it soggy as it drizzled all day Monday and Tuesday and part of Wednesday. So, very little harvest at the beginning of the week. Harvest started a little bit on Thursday. People moved corn during the rainy period trying to make space to start picking again. We had a little wind on Thursday that made things interesting all day, but we picked in the afternoon. The wind blew pretty hard. It is always something. I wanted to thank the people who picked around the corners of some of the fields so people can see driving up to stop signs a little better. We appreciate that. Have a safe harvest.

Ron Moore, Roseville, Warren County: We received 1.2 inches of rain last week in two different rains. It stopped soybean harvest and gave us a muchneeded break in corn harvest. We are about 50 percent finished with corn harvest and soybean harvest is just getting underway. The weather forecast is for a week of sunny days ahead so we will switch to soybeans today (Friday). The recent rains have not been enough to start the streams running water again. We will need more rain this fall and winter to recharge the soil for next year.

Mark Kerber, Chatsworth, Livingston County: Fieldwork was slow last week, as it rained every day. More than 2 inches fell in our area. This week will be busy, starting on corn and switching to soybeans when they are ready. Drier weather will be welcomed. We tested two cornfields for Aflatoxin and the tests came back negative. This was good news.

Markets have gone down some with harvest starting.

Ron Haase, Gilman, Iroquois County: It was a wet week. It rained varying amounts from Sept. 26 through Sept. 29. Most of the rain came on Monday and Tuesday. Our farms received a range of 1.85 to 2.25 inches. This prevented any harvest activity during the past week. At this point, very few acres have been harvested in the area. After the situation in 2009, local farmers may be less patient in waiting for the corn to dry down in the field.

Local corn development is anywhere from the dent stage, with the milkline 66 percent of the way down the kernel, up to the few acres that have been harvested. Most soybean fields range from the R-7 or beginning maturity growth stage up to the R-8 or full maturity.

Only a few fields of soybeans in the area have been harvested. The local closing bids for Sept. 29: nearby corn, $6.17; fall 2012 corn, $5.38; nearby soybeans, $12; fall 2012 soybeans, $11.94.

Brian Schaumburg, Chenoa, McLean County: Howling winds did no favors to corn stalk quality, as harvest pace picked up after 2 to 3 inches of rain made for a wet start to the work week. Corn is still in the mid20s and yields are holding up.

Few beans have been harvested, but those yields are quite good. Plots are coming in and so are the requests for early seed orders. Supplies will be tight. Corn, $6.20; January corn, $6.35; fall 2012, $5.50; soybeans, $11.95; January, $12.12; fall 2012, $11.94; wheat, $6.05.

Steve Ayers, Champaign, Champaign County: On Sunday and Monday we had 0.75 of an inch to 1.25 inches of rain. The general refrain was “Where was this in July and August?” We finished a 70-acre field that yielded an astonishing 157 bushels of dry corn. My feelings were anything above 125 bpa would be a miracle. We may start beans this week. Dave Prahl of Premier Coop said mid-week that southwest Champaign was 44 percent harvested with a 180 bpa average, while northern Champaign County had a wider range of yields from 50- to 185-bpa and slower harvest progress. Moisture was still in the 22 percent range. Soybeans were only about 8 percent harvested, but southeast Champaign County was more than 50 percent done. Meteorologists seem to agree that the first half of October will be warm and dry, while the second half will be wetter and cooler. Let’s be careful out there!

Carrie Winkelmann, Tallula, Menard County: Soybean harvest has been held up by some wet weather. 0.5 of an inch of rain fell on the Wednesday, followed by another 0.1 of an inch on Thursday. Nice winds and warm weather got everyone going again on Thursday. Early-soybean yields have been surprisingly good. Hopefully, that trend continues. Corn harvest in the area is over half complete and several chisel plows are running.

Wilfred Dittmer, Quincy, Adams County: Mark another week on the calendar with very little precipitation, but good harvesting weather and many fields are showing the results. No more standing corn. Perhaps a guesstimate would be maybe 70 percent done, while some areas are completely finished. Still only a few fields of soybeans are cut, while others have turned fast in the last week. With some surprises in the cornfields, one wonders what the bean fields have to offer. Total rainfall for September comes in at a whopping 1 inch, with 0.6 of an inch of that coming on Monday (Sept. 26). Year-to-date here since March stands at 25 inches, but about half of that came in June. Have another safe week.

Tom Ritter, Blue Mound, Macon County: Since my last report we had anywhere from 0.5 to 0.75 of an inch of rain in separate showers, but the rain did not lead to any major delays in harvest. If anything, soybeans that were just getting mature enough to harvest were delayed a day or two, but with the high pressure system that came in on Thursday with high winds, soybean harvest is well underway. At this point, nearly 70 percent of the corn in southern Macon County has been harvested.

A little less harvested in northern Macon County. Soybean yields at this point, even though there have been few reports, seem to be very good — average to just below average. A lot of reports of 55- to 65-bushel beans, but there will be isolated fields that will not make that, especially those with poor drainage.

Todd Easton, Charleston, Coles County: This is becoming a hectic soybean harvest, as rain showers have had combines starting and stopping for most of the week. With a much friendlier forecast this week, hopefully producers can take out a big chunk of the bean crop, as practically the entire crop has ripened and is ready. Because of the wet pattern, several farmers have gone back to corn harvest making standing fields harder to find by the day.

As we get further into the corn crop, individual fields can, for the most part, be classified as good, bad, or ugly. The good would be better than expected, yields well above the 150mark. The bad are the not as good as hoped for fields that can be found below that mark and the ugly are the flat (lodged) fields requiring the use of corn reels.

Jimmy Ayers, Rochester, Sangamon County: Last week we really had no measurable rainfall. Forecasters kept promising rain and nothing came through our place. It was just dreary, wet, and heavy fog the first part of the week.

By Wednesday a few farmers got into the bean fields. Corn is probably 60 to 70 percent complete. Yields are still varying greatly, depending on drainage and many other factors, variety and nitrogen — I don’t think anyone has pinpointed specifics. Beans look to be really good this time. We started on Thursday and haven’t really finished any fields yet. Quite a bit of fertilizer has been going on. Looks like a good week of nice, dry weather and quite a few beans are really close to being ready to go. Think safety when you are out there.

Dave Hankammer, Millstadt, St. Clair County: The past week started off with overcast skies and cooler temperatures slowing down the field drying of corn. Some light precipitation and fog kept the mornings hours damp, which slowed harvest.

However, the weather changed and brought warmer temperatures and drier air for most of the week.

Corn harvest continues to progress, with most of the early-planted fields complete.

We had corn samples with 18 percent moisture. Soybean harvest in the immediate area hasn’t started yet. Some of the fields are maturing quickly and will probably be ready in about a week. There are reports of bean harvest in the river bottoms. With the beginning of the fall season, produce growers are offering pumpkins, mums and cornstalks at their farms and stands. Local grain bids: corn, $6.12; soybeans, $12; wheat, $5.97. Have a safe week.

Page 7 Monday, October 3, 2011 FarmWeek

CROPWATCHERS Doug Uphoff, Shelbyville, Shelby County: Wow. Corn is coming out at a record pace. Wish I could say as much for the yields.

We have had corn yields from 86 to 167. I’d say a 138 to 143 average in our area for corn would be the norm. Prices have been coming down along with yields. Looks like it may be a thin year again. We just started soybeans and are looking at yields in mid-30s to low-40s. North and south of here where they received rain, yields are in the 50s. We received rain now, so ground is working good. We should be done with corn and beans by the second or third week of October.

David Schaal, St. Peter, Fayette County: A lot of corn harvesting is occurring in the area, with moisture readings ranging from 18 percent to mid-20s.

Yields are just a little bit better than producers anticipated.

Soybean harvest is just in the beginning stages. There were spot rains that held farmers up from harvesting for a couple of days. Be safe out there.

Reports received Friday morning. Expanded crop and weather information available at {www.farmweeknow.com}.

Dan Meinhart, Montrose, Jasper County: Most of the week was cool, cloudy, foggy, and rainy. Light rain fell several days.

Totals amounted to 0.75 of an inch to 1 inch. The corn did not dry down in the field last week. In fact, it may have picked up a couple of points. Moisture in corn is running in the 20s. Very little corn harvest has been done. Yields are running all over the board. Bean harvest picked up slightly on Thursday. A cool weekend was expected with a warming trend this week.

Ken Taake, Ullin, Pulaski County: The week started out slow with more than 2.5 inches of rain Sept. 24 and 25. We managed to get back in the field on Wednesday afternoon. Corn yields, at least on our farm, are improving somewhat.

The last field we cut was up to about average, but yields still seem to be extremely variable. I have heard of a few farmers who have quit harvesting corn because of high moisture content. They will try to let Mother Nature do a little drying. We cut a few soybeans, but the two small patches we cut so far, yields have been disappointing. Please take time and be careful during this busy season.

Kevin Raber, Browns, Wabash County: Harvest resumed later in the week after big rains Sept. 24 and 25. The corn I shelled had widely variable yields. Low spots were drowned out and sandy ridges hurt by high temperatures.

There have been some beans cut.

I heard yields have been good on the early-beans.

Dean Shields, Murphysboro, Jackson County: We are drying out this week from that 4.5 inches of rain we received last week. There has not been any tillage work done yet on any harvested ground. Corn harvest is still coming along. Some of the guys are complaining that the corn is not drying down for them very well.

Bean harvest got started last week.

We have been disappointed with the yields. It was just too hot and too dry for too long down here. The beans are very small and just not very good quality it seems like. Maybe the later-maturing beans will be of better quality. The beans we harvested for early numbers were dry, too. Sounds like we have another beautiful week and a lot of harvesting can be done. We do have one guy in the area who sold some sunflowers that look really pretty now with their heads shining. Everyone have a safe harvest and take care.

Harvest creeps along as corn moisture remains high

BY DANIEL GRANT FarmWeek

Harvest activity was sporadic again last week as recent rains and high moisture readings kept farmers out of many cornfields.

Corn harvest in Illinois the first of last week was 22 percent complete compared to 54 percent last year and the fiveyear average of 25 percent.

Soybean harvest also was behind last week as just 4 percent of beans were cut statewide compared to 20 percent last year and the average of 12 percent.

“We harvested some corn (in mid-September) we planted in early-April, but since then we received about five to six inches of rain,” Rich Guebert Jr., vice president of the Illinois Farm Bureau and a farmer from Ellis Grove, said last week.

“Things have started to dry out and a couple combines are starting to move,” he said.

“But we’re probably another week to 10 days off from really running hard.”

A number of farmers in recent weeks reported corn moisture readings have been in the mid-to-high-20s to as high as 30-plus percent.

Corn moisture readings at many locations have been slow to decline this year due in part to poor stalk quality caused by abnormally dry soil conditions and drought, according to Kevin Black, GROWMARK insect/plant disease technical manager.

“Part of the moisture is taken out of the ear physiologically,” Black said. “So when you kill the stalk, it interrupts that process and we’re left with air drying, which can be a slow process.”

The situation has left many farmers in a Catch-22. If farmers leave corn with poor stalk quality in fields to air dry, they run the risk of lodging.

But, if they harvest early, some farmers may be stuck with higher drying bills.

“Growers are limited by what they can and can’t do,” Black said. “Most are going after it hard and will continue to do so.”

Corn harvest was 51 percent complete in Southwestern Illinois the first of last week compared to just 4 percent complete in the northeast.

Rainfall last month, despite delaying harvest, was much needed in many areas, particularly south of Interstate 80.

Many areas of Southern Illinois last week remained abnormally dry while some

portions of Central Illinois still were classified in a drought, according to Bryce Anderson, DTN ag meteorologist.

“It was a good time to put in moisture (ahead of winter wheat planting) but it’s not like the rain completely ended things” with

the drought, he said.

Anderson forecast the weather for the remainder of harvest will be “pretty favorable” with temperatures normal to above normal and precipitation near to below normal across the Midwest.

National FFA Convention live online

Fred Rodhouse Jr. scans a 95-acre soybean field near Pleasant Hill in Pike County. Rodhouse, who farms with his father, Fred Rodhouse Sr., has soybean yields ranging between 45 to 50 bushels per acre. Statewide, only 4 percent of soybean harvest was complete last week compared to 12 percent a year ago. (Photo by Ken Kashian)

The National FFA will stream its 2011 National Convention in Indianapolis Oct. 19-22 live online via newly launched Alltech Ag Network on iHigh.com.

The televised convention will be accessible in real time over computers, iPads and all iPhones, Android, and BlackBerry mobile devices.

View the broadcasts live on the Internet at {ffa.ihigh.com}.

For mobile phones, including iPhones, Androids and some BlackBerrys, the broadcasts may be accessed at m.ihigh.com/ffa by clicking on the Media button and selecting your smartphone type to view the broadcast.

Broadcasts will be viewable live and on-demand at no cost to the users.

If there are any issues viewing a broadcast, contact 859-514-3886 for technical support.

The broadcasts will start Oct. 19 at 6:15 p.m.; other sessions will be Oct. 20, 1 and 6:30 p.m.; Oct. 21, 7 and 11 a.m., and 2 and 6 p.m.; and Oct. 22, 6:45 a.m. and 12:30 p.m.

FarmWeek Page 8 Monday, October 3, 2011

BIOMASS

Europeans, Americans put different spin on biomass

BY KAY SHIPMAN FarmWeek

European and American scientists share the same goal of having farmers grow biomass crops to help meet energy needs, but they are using different avenues — and plants — to reach that goal.

Recently, researchers from several countries gathered at the University of Illinois to discuss their research on all things biomass.

It was the first time the Association of Applied Biologists had organized a conference outside of Europe. The group targeted the U.S., and Illinois specifically, because of ongoing research here, according to Trevor Hocking, a British scientist and the association’s president.

Willows and miscanthus were the focus of many international alternative energy research projects. Switchgrass and miscanthus featured prominently in U.S. research reports. A few native prairie grasses also cropped up among U.S. and Canadian studies.

After three days of reports and discussions, the U.S. delegation probably learned more about growing and processing of willows and miscanthus, while scientists from Europe learned more about switch-

grass, Hocking said.

Willows are a new experimental woody biomass crop on the U of I’s Energy Farm. But it was the farm’s plots of black locust, poplar, maples, and other tree species that captured the attention of the international scientists who toured the research farm.

The mix of international views provides opportunities to collaborate and “to see that we are not all reinventing the wheel,” said Tom Voigt, U of I crop sciences professor.

“It’s good to have a number of students attend,” Voigt continued. “Good for them to see this is a global issue and people are interested in it around the world.”

The Illinois landscape between Chicago’s airports and Urbana also helped advance understanding among some European researchers, according to Hocking.

“On the drive down from Chicago, you see ... all the corn and soybeans,” Hocking said.

That drove home the scale of Illinois agriculture and the challenge of introducing new biomass crops, he explained.

European farmers, especially those in the United Kingdom, are increasingly interested in using renewable energy on their own farms. Lunch dis-

Ab ove: Researchers examine information about experimental woody biomass plants being grown on the University of Illinois Energy Farm, Urbana. Scientists from several nations toured the Energy Farm during a recent biomass meeting of the Association of Applied Biologists at the U of I. Right: British scientist Trevor Hocking, president of the Association of Applied Biologists, photographs one of many biomass plant varieties grown on the University of Illinois Energy Farm. Hocking reported on several miscanthus research studies during the association’s recent biomass meeting at the U of I. (Photos by Kay Shipman)

cussions included comparisons of on-farm use of small wind turbines and solar panels in Britain with what is happening in the United States on a much larger commercial scale.

One of the few farmers who attended the conference,

Piatt County farmer Doug Gucker, is considering growing biomass crops on a few of his acres and using the renewable energy source on the farm, he said.

“We live in the country, energy costs are high, our elec-

tric service is temperamental, and the costs are increasing,” Gucker said.

“There really isn’t a market for it (biomass crops) yet. If we could reduce our (energy) costs, that’s money in our pockets.”

Researchers scratching surface of biomass crop systems Biomass crops present similar challenges around the globe, scientists shared at a recent international biomass and energy conference at the University of Illinois.

The Association of Applied Biologists meeting provided researchers an opportunity to share discoveries and challenges.

Below are a few of the high-

lights from three days of discussion.

Miscanthus: England’s Trevor Hocking of the University of Wolverhampton assessed 20 years of miscanthus production. Two key factors are proper site preparation and establishing the crop, he said.

One major need is a standardized vigor rating for rhi-

zomes because growers lack any certified product and must trust their sources to supply viable rhizomes, Hocking said.

Research also is needed to develop improved genotypes for different climates and locations and to improve rhizome processing to reduce damaging the product, he added.

Biomass production/processing: Samuel Jackson of

USDA pumping $136 million into bioenergy research Five major agricultural research teams were awarded USDA grants to develop regional, renewable energy markets and create rural jobs, U.S. Agriculture Secretary Tom Vilsack announced last week.

The five-year program will award more than $136 million in research and development grants to public and private sector partners in 22 states.

The five teams will be lead by universities in Washington, Louisiana, Tennessee, and Iowa.

The grants were funded through USDA’s National Institute of Food and Agriculture (NIFA).

• An Iowa State University team will receive $25 million to

develop a regional biomass production system for advanced transportation fuels made from native perennial grasses, such as switchgrass, big bluestem, and Indian grass. Scientists will study the potential benefits of planting grasses with legumes. The team also will evaluate a biochar as a soil amendment to increase carbon sequestration.

• A University of Tennessee team will receive $15 million to develop sustainable switchgrass and woody biomass crops that will produce low-cost, easily converted sugars for conversion to butanol, lignin byproducts, forest and mill residues, and dedicated energy crop feed-

stocks to produce diesel, heat, and power.

• A University of Washington team will receive $40 million to focus on sustainably grown woody energy crops to produce biogasoline and renewable aviation fuel.

• A Washington State University team will receive $40 million to convert closed timber mills into bioenergy development centers.

• A Louisiana State University team will receive $17.2 million to study the economically viable conversion of existing refinery infrastructure for regular production of energy cane and sorghum.

Genera Energy and the University of Tennessee, emphasized farmers must be involved in biomass production and processing research.

“Farmers put the pencil to paper and know what it (production) costs. If it doesn’t work on the farm level, it won’t work on the national level,” Jackson said.

Farmers need reliable sources of production information, especially during the first year they start growing biomass crops, he noted. They also need risk management tools, such as crop insurance, and consistent state and federal policy, because perennial energy crops are long-term crops that require years to establish, Jackson said.

Climate impacts: Biomass crops do not grow uniformly in all locations. Some varieties are more tolerant of cold and frost while others can do better in drought or flood conditions, according to several researchers.

Nitrogen fertilizer can help establish miscanthus in colder northern climates, said Canada’s Bill Deen with the Univer-

sity of Guelph.

“The optimal nitrogen rate will be determined by location and harvest time,” Deen said.

“The idea that we will have one simple nitrogen location is much too simple. We don’t do that with corn.”

A computer model being developed at the U of I may help farmers manage their biomass crops based on weather data, said Yogendra Shastri, an agricultural engineer.

“Our goal is to find the best sequence of operations by penciling all the systems together,” Shastri said. “The impact of weather must be considered with field operations.”

To date, the model has been applied to miscanthus and switchgrass production. For example, the computer model recommends switchgrass be harvested between September and December while miscanthus harvest is between January and April.

Miscanthus crop losses due to poor weather is greater than switchgrass weather-related losses, Shastri noted. — Kay Shipman

Page 9 Monday, October 3, 2011 FarmWeek

Pork

Family hopes to expand hog operation in Whiteside County Whiteside County Farm Bureau, have been selling their FarmWeek hogs to Iowa-based Niman Record-high feed and input Ranch for more than a decade. costs may make many livestock Niman Ranch producers think markets pork, twice about FarmWeekNow.com expanding their L e a r n m o r e a b o u t N i m a n beef, lamb, and poultry prodoperations any Ranch pork production opporucts, mostly in time soon. tunities at FarmWeekNow.com. the U.S., and But a unique has a program to production assure consumers the animals opportunity not only helped are raised with care.

Steve and Shari Heun survive the “When the hog market crisis collapse of the hog market in hit in 1998 (and hog prices 1998, it also has them positioned dropped to as low as 8 cents per to possibly grow their 100-sow pound), we took a big hit like farrow-to-finish operation near everybody else,” said Steve Heun, Fulton in Whiteside County.

The Heuns, members of the who worked as a carpenter for 17

BY DANIEL GRANT

Hogs/pigs inventory grows; prices could slip from highs U.S. pork producers’ recent run of profitability could come to an end soon.

USDA last week in its quarterly hogs and pigs report estimated the inventory of all hogs and pigs in the U.S. as of Sept. 1 totaled 66.59 million head, up 1 percent from last year and 3 percent higher than the previous quarter.

The hogs/pigs inventory in Illinois (4.65 million head) was up 4 percent from last year.

The national breeding inventory (5.81 million head) and market hog inventory (60.8 million head) also were up 1 percent compared to last year.

“Even though (traders) expected the breeding herd and inventory to be higher, there was some outside hope (hog producers) responded to higher feed costs by cutting back the number of pigs coming to market,” Altin Kalo, market analyst with Steiner Consulting, said during a teleconference hosted by the National Pork Board.

Kalo projected the pig crop produced next year could increase by 1.2 percent in the first quarter and 2 percent in the second and third quarters, based on the most recent inventory projections.

USDA last week also reported the average pigs-saved-per-litter was a record-high 10.03, up 2 percent from a year ago.

“Those numbers will be viewed somewhat negatively,” Kalo said. “We’re not as bullish as we were.”

Kalo and fellow market analysts Dale Durchholz of AgriVisor, and Jim Robb, director of the Livestock Marketing Information Center, projected hogs prices in the fourth quarter will slip from an average of $87 per hundredweight last week to a range of $80 to $85.

Breakeven prices, as of last week, were between $85 and $89 per hundredweight, according to Steve Meyer, livestock economist at Paragon Economics.

“We look for prices to erode and slip into negative (returns) in the fourth quarter this year, which is kind of a normal pattern,” Robb said.

Prices still are expected to remain above the average of a year ago, $79 per hundredweight, and possibly increase next year.

The analysts projected hog prices will bounce back to $83 to $88 per hundredweight the first quarter of 2012 and by the second and third quarters next year the price could peak in a range of $92 to $98.

Hog producers, though, are not expected to expand production much beyond current levels.

“We’ve taken a lot of starch out of grain prices and brought feed prices back to what producers may believe is reasonable,” Durchholz said. “But now (pork producers) may shift gears and be defensive with what lies ahead in the economic and demand structure outlook.”

The analysts projected economic struggles could continue, which could soften meat demand.

“Any hiccup in that (export) market could have a significant impact on prices,” Kalo said.

Other livestock sectors already responded by reducing numbers. U.S. broiler egg sets last week were down 9 percent compared to a year ago while the cattle on feed inventory last month was down 1 percent compared to last year.

“There is concern” about demand prospects for meat, Durchholz added. “We could see a more cautious attitude (from pork producers) out there.”— Daniel Grant

years before returning to his family’s fourth-generation operation 18 years ago to farm full time.

“We were pretty down and out,” Shari Heun said. “We couldn’t figure out what to do, so I called (Niman Ranch) and thought we should give it one last go.”

Niman Ranch has strict protocol for its livestock production but in return offers producers the protection of an established floor price plus the possibility of premiums, according to Megan Rottinghaus, field agent for the company’s pork division.

The floor price for hogs purchased by Niman Ranch the next six months is $96 per hundredweight/carcass. The floor price is influenced by feed and fuel costs. Niman Ranch since September 2010 has raised its floor price eight times.

“Our market price is based in part on commodity prices,” Steven Heun said. “So we can make money.”

The Heuns grow corn and soybeans and produce enough crops to provide their own livestock feed, which helps take the volatility out of their input costs. They also have enough crops left over to market some in the open market and take advantage of recent high prices.

Their hog herd consists of Berkshire, Chester, and Duroc breeds that are raised in a deeply bedded system — a protocol for Niman — which

Steve Heun, a Whiteside County Farm Bureau member, spreads hay bedding inside a hoop structure for a portion of his hog herd. A unique production opportunity with Iowa-based Niman Ranch has helped Heun remain in the hog production business, with plans to grow, despite extreme market variability and record-high feed prices. (Photo by Daniel Grant)

includes two hoop structures.

The Heuns use waterway grass and cornstalks grown on their farm as bedding for their herd.

Other protocol required for livestock in the Niman Ranch system includes feed without antibiotics or animal by-products.

The Heuns instead use a variety of probiotics along with a strong vaccination and parasite program to help maintain the health of their herd. Niman Ranch also has a veterinarian who assists member farmers.

The Heuns believe their operation is positioned to grow in the future, particularly as their son, Andy, has gotten more involved with the hogs. Their daughter, Emma, maintains a horse and calves on the farm.

In fact, Niman Ranch is

seeking more farmers to produce livestock in Illinois.

“We are looking for more producers, either farrow-to- finish or just wean-to-finish,” said Mark Lane, director of live hog operations for Niman Ranch.

Farrow-to-finish producers should have at least 20 sows and finishers should produce at least 200 pigs in a group. Niman Ranch arranges much of the transportation and currently has three collection points in Illinois.

“We want to work with smaller, independent producers,” Lane said. “We have contracts available that recognize production costs.”

Lane can be reached at Niman Ranch at 563-324-0154. More information also is available online at {www.NimanRanch.com}.

FarmWeek Page 10 Monday, October 3, 2011

Page 11 Monday, October 3, 2011 FarmWeek

Education

Ag ed teachers serving broader roles in Illinois schools

BY KAY SHIPMAN FarmWeek

Across Illinois, high school agriculture programs are meeting expanded needs of students and districts, leaving state ag educators questioning if the supply of future ag teachers will keep up with demand.

Last school year, 77 percent of all Illinois ag programs offered science credits

required for graduation. Meanwhile 20 percent of ag programs provided consumer education credits, according to data from the Facilitating Coordination in Agricultural Education (FCAE).

Ag programs increasingly fill a significant academic role by helping students fulfill graduation requirements, said Jay Runner, FCAE state coordinator.

“Some rural schools don’t have enough science teachers” to meet all the students’ graduation requirements, Runner noted.

In addition to helping students meet academic requirements, some ag programs also are helping students by offering classes related to industrial technology when teachers in that subject retire causing the programs to close.

Hogan: U of I better financially, but difficult decisions remain The past year saw an improvement in the University of Illinois’ financial health, President Michael Hogan recently told Illinois Farm Bureau board members.

About a year ago, the then-new U of I president had shared a dire assessMichael Hogan ment of the university’s financial situation with the IFB board, the first state group he addressed after assuming his post.

Given the current budget climate, Hogan said he viewed this year’s 1 percent cut in state funding for the U of I as “a victory.”

Plus, “the state still owes us $311 million from last year’s budget,” Hogan added.

However in the first of a

multi-year plan, the U of I has trimmed its budget by $26 million — $6 million more than Hogan said he had anticipated. He estimated the university will cut another $25 million to $26 million next year. His goal is to reduce the total budget by $60 million.

Hogan explained the savings were achieved by integrating and consolidating services, such as human resources and information technology, for the three campuses.

The U of I also was able to cut expenses by consolidating purchases for all the campuses.

Other campus-level savings may surface in the near future now that the three chancellors have been asked to reduce costs, maybe as much as 5 percent, on their respective campuses, according to Hogan.

As for other possible

State ag groups give $28,000 for U of I ag communication Five Illinois agriculture groups recently announced a $28,000 award for a joint initiative between the University of Illinois College of Agricultural, Consumer and Environmental Sciences (ACES) and the College of Media.

Awards from the Illinois Farm Bureau (IFB), Illinois Beef Association (IBA), Illinois Corn Marketing Board (ICMB), Illinois Pork Producers Association (IPPA), and Illinois Soybean Association (ISA) and will be applied towards the university’s $2 million goal for the James F. Evans Endowed Chair in Agricultural Communications.

“We need to attract the best and the brightest into agricultural communications. IFB is excited about how the establishment of the Evans Chair will elevate the presence of agricultural communications at the University of Illinois,” said IFB president Philip Nelson.

The university plans to enhance its ag communications program with an endowed chair to support teaching and research in the communications field.

The plans include having at least three teaching positions and initiatives in consumer and environmental communication.

“We are grateful for the Illinois agriculture associations’ willingness to support this important initiative that will benefit the university’s students in agricultural communications for years to come,” said ACES Dean Robert Hauser.

changes, Hogan said the U of I has never had a good enrollment management policy or a “smart financial aid policy.”

“All in all, the university is in better shape now than I thought it would be one year ago,” Hogan said. “But we’re a long way from financial stability ... and we have to be prepared to make difficult decisions as we did this year.” — Kay Shipman

About five years ago, ag mechanic curriculum was changed “to fill the void when industrial technology teachers retired in some programs,” Runner said.

Runner pointed out ag programs also touch on food science and may be able to help districts meet needs for family and consumer science classes.

“Could we grow (curriculum) in food science and help meet other students’ demands?” he asked.

As ag programs expand into new curriculum areas, state ag education committee questions if the supply of future ag teachers will continue to meet the demand.

This school year, only one out of 53 ag teacher vacancies was not filled while three new high school ag programs opened and a total of four teachers were added to existing ag programs. This offset the closing of two ag programs.

Meanwhile, the four universities with agriculture programs produced only 27 graduates

with degrees in ag education.

A significant number of ag teachers are nearing retirement at the same time new ag programs are opened and others are adding an extra teacher, according to Runner.

‘Could we grow (curriculum) in food science and help meet other s t u d e n t s ’ demands?’

— Jay Runner Facilitating Coordination in Agricultural Education

“Do we have the one (in college) to fill the void coming up soon?” Runner asked.

“We’re still trying to open new programs.”

“There is an opportunity for students who choose ag education as a major,” Runner said.

FarmWeek Page 12 Monday, October 3, 2011

economy

Job prospects ‘bright’ at ISU Ag Career Fair

BY KAY SHIPMAN FarmWeek

Employers and university students shared an optimistic outlook about the agriculture job market at Illinois State University’s (ISU) annual Ag Career Fair on the Normal campus last week.

“Agriculture is a bright spot,” said Stephen Cantine, director of ISU’s Career Center, in between discussions with company representatives.

This year more than 40 businesses were represented, an increase of 10 companies compared to last year.

Some firms, such as PepsiCo/Frito-Lay Inc., made their first appearance at the Ag Career Fair.

The combination of graduates who have an agriculture background with a strong work ethic interested Lisa Mancuso, a talent acquisition manager with PepsiCo. Mancuso was seeking candidates for a sales position; she reasoned individuals who understood the production

of crops used in Frito-Lay products “makes them better able to sell the products.”

Steve German, GROWMARK member employment manager, said agriculture graduates will find job openings, but they also will face

‘The job market fo r a g i s r e a l l y open. There is a lot of opportunity.’

— Andrew Craig Illinois State University senior in agriculture business

competition for those positions.

“We don’t have as many jobs (available) as the total number of grads and intern candidates. There are jobs, but it will be competitive,” German said.

Steve German, left, GROWMARK member employment manager, chatted last week with Andrew Craig, an Illinois State University senior, during the annual Agriculture Career Day on the Normal campus. Craig, a Bloomington agriculture business major, completed an internship with GROWMARK over the summer. (Photo by Kay Shipman)

Andrew Craig, a senior agriculture business major from Bloomington, recom-

mended internships as one way students can distinguish themselves from their com-

petition. Craig completed an internship with GROWMARK this past summer.

“The job market for ag is really open. There is a lot of opportunity,” Craig said.

Fellow senior Ashley Bishop of Litchfield agreed with Craig. Bishop is earning two degrees, one in agronomy and the other in geography with a minor in environmental science.

“Right now, it seems the ag job market is bursting,” she said.

The job market for agriculture grads may be different than it was in the past, but the basics of landing a first job after college have not changed, according to Cantine.

“Students need to be willing to move — ADM and John Deere are hiring.

It’s convincing students to start their careers in Decatur and those areas and instilling in students that their first job is not going to be their last,” he said.

Ag ScholArShip DigeSt American Soybean Association (ASA) Secure Optimal Yield Scholarship — A high school senior pursuing an agriculture degree at any accredited college or university will be awarded a $5,000 one-time award.

Online applications are being accepted through Nov. 15 at {www.soygrowers.com/ soy/scholarship.htm}.

Eligible applicants must have at least a 3.0 average on

a 4.0 grade point scale, be the child or grandchild of a current ASA member, and plan to major in agriculture or a related field at an agriculture school.

Applications must include an essay and two letters of recommendation. The recipient will be selected in early December.

The scholarship is managed

by ASA and made possible through a grant by BASF Corp.

Page 13 Monday, October 3, 2011 FarmWeek

from the counties

K

Billboards commemorate producer, highlight safety In an effort to highlight fall harvest road safety, four billboards throughout McHenry County have been dedicated in memory of Mancel “Butch” Beard, 66, who died July 12.

Mancel, 66, was driving his tractor north on McHenry County Route 23 and attempting to turn left when a motorist struck his tractor while trying to pass him.

According to McHenry

County Farm Bureau, the memorial billboards (which advise motorists, “Farmers ahead – please share the road”) should reach nearly 30,000 exposures per day in four different cities: McHenry, Woodstock, Harvard, and Marengo. They will be displayed throughout the harvest season.

The billboards were made possible through a portion of Mancel’s memorial and the

support of 14 additional sponsors from the community. The billboard was designed

by LAMAR Outdoor Advertising of Rockford.

McHenry County Farm Bureau was among contributors to the efforts, along with Conserv FS, 1st Farm Credit Services, McHenry County Community Foundation, and a number of area agribusinesses, businesses, and families.

ENDALL — The annual meeting will be at 5:30 a.m. Monday, Nov. 14, at the Yorkville Legion. A social hour and Foundation silent auction will be held. Upper Crust will cater the meal. Cost is $15. Denny Hastert, former U.S. speaker of the House, will be the speaker.

Call the Far m Bureau office at 630-553-7403 for reservations or more infor mation.

• The Young Leaders and Newark FFA Far m Toy Show will be at 9 a.m. Sunday, Nov. 20, at the Newark High School. Admission is $2. Call the Far m Bureau office for more infor mation.

• The Young Leaders contributed $14,500 to the Ag in the Classroom program through the efforts of its golf outing and Riviera Maya raffle. Platinum sponsors of the golf outing were Grainco FS, Elburn Co-op, First Far m Credit

Ser vices of Ottawa, Stewart Far m Partnership of Yorkville, and Brummel Far ms of Plano.

ASALLE — LaSalle County plat books are available at the Far m Bureau office. Cost is $20 for members and $30 for non-members. Call the Far m Bureau office for more infor mation.

TARK – The annual Antique Road Show will be at 9 a.m. Friday, Oct. 21, at the Far m Bureau office. Bring one or two of your possessions and Jim Folger, Folger Auction Ser vice, will discuss each item and offer appraisals.

Breakfast will be ser ved.

Call the Far m Bureau office at 286-7481 for reser vations or more infor mation.

Auction Calendar

Thurs. Eve., Oct. 27. 7 p.m.

Sangamon Co. Land Auction. Febus Estate and Trust. Sanert Auction Service. www.sanertauctions.com or auctionzip.com auction ID#2473 Sat., Oct. 29. 9 a.m. Consignment Auction. N.I.T.E. Eq., PECATONICA, IL. www.niteequip.com Wed., Nov. 2. 10 a.m. Farmland.

John V. Bermes Estate, KERNAN, IL. Bradleys’ and Immke Auction Service.

Thurs., Nov. 3. 10 a.m. McLean Co. Land Auction. BLOOMINGTON, IL. Hertz Farm Mgmt. www.hfmgt.com Thurs., Nov. 3. 10 a.m. Land Auction Livingston Co. Mary Becker Estate, PONTIAC, IL. Immke and Bradley Auction Service. biddersandbuyers.com/immke Thurs., Nov. 3. Farmland Kankakee Co. Soy Capital Ag Services. www.soycapitalag.com Fri., Nov. 4. Edgar Co. Real Estate.

Sims Farms, HUME, IL. Stanfield Auction Co. www.stanfieldauction.com Fri., Nov. 4. 10:30 a.m. Real Estate and Prime Farmland DeKalb Co. Dale Nowicki Trust, LELAND, IL. Jim Elliott, Dick McConville and Craig Elliott, Auctioneers. www.elliotauctions.net, www.mcconvillerealty.com, www.auctionzip.com (id#2927) Fri., Nov. 4. Farmland Vermilion Co. Soy Capital Ag Services. www.soycapitalag.com Fri., Nov. 4. 6 p.m. Land Auction.

Walter L. Puckett Heirs, FAIRFIELD, IL. Barnard Auctions. www.auctionzip.com, auctioneer ID #2008 Sat., Nov. 5. 10 a.m. Grundy Co. Land Auc. Harold and Kathryn Keck Trust, MAZON, IL. Richard A. Olson & Assoc., Inc. richardaolson.com Mon., Nov. 7. 6 p.m. Farmland.

Reginald N. Blankenship Estate, DONNELLSON, IL. Langham Auctioneers.

Tues., Nov. 8. Farmland Sangamon Co. Soy Capital Ag Services. www.soycapitalag.com Wed., Nov. 9. 6 p.m. Land Auction.

The Helen E. & Carl J. Huels Sr. Trust, BARTELSO, IL. Mark Krausz Auction Service. www.krauszauctions.com Wed., Nov. 9 . Farmland Piatt Co. Soy Capital Ag Services. www.soycapitalag.com Wed. Nov. 9. 160 Ac. Piatt Co. Soy Capital Ag Services. www.soycapitalag.com Sat., Nov. 12. 10 a.m. Real Estate Auction. Cyrus Johnson Estate, GODFREY, IL. Henke Auction and Realty. www.henkeauction.com

Mon., Oct. 3. 10 a.m. McDonough Co. Land Auc. Ronald A Molitor, BLANDINSVILLE, IL. Sullivan Auctioneers, LLC. www.sullivanauctioneers.com Tues., Oct. 4. 10 a.m. Livingston Co. Farmland. Nadine and Craig Slemp, GRAYMONT, IL. Immke and Bradleys’ Auction Service. biddersandbuyers.com/immke Thurs., Oct. 6. 10 a.m. LaSalle Co. Farmland Auc. The McCormick Farm.

Dick McConville, Marty McConville and Joe McConville, Auctioneers. www.mcconvillerealty.com Sat., Oct. 8. 9 a.m. Large Antique Auc. Mardelle Martin Estate, JACKSONVILLE, IL. Curless Auction. www.curlessauction.com Mon., Oct. 10. 1 p.m. 222.1 Ac. Farmland Auction. Thelma Lutz Estate, LENA, IL. Jim Calhoun, Auctioneer.

Tues., Oct. 11. 7 p.m. Land Auction Menard Co. Stephen Tice Jacobs, MILWAUKEE, WI. Sanert Auction Service. www.sanertauctions.com or auctionzip.com auction id#2473 Wed. Eve., Oct. 12. 7 p.m.

Champaign Co. Land Auction.

Wandell’s Nursery, Gladys B. Lindstrom, ST. JOSEPH, IL. Jim Clingan Auction & Realty Inc. www.jimclingan.com Sat., Oct. 15. 11 a.m. Lee Co. Land Auction. Sammoura Gehant, WEST BROOKLYN, IL. Espe Auctioneering. www.espeauctions.com Mon., Oct. 17. 10 a.m. Champaign Co. Farmland. Hamm Farms, B&B Farms, RANTOUL, IL . Gordon Hannagan Auction Co. www.gordyvilleusa.com Wed., Oct. 19. 5 p.m. Absolute Farmland Auction. Narmont Family Estate. www.aumannauctions.com Wed., Oct. 19. 7 p.m. Logan Co. Farmland Auc. LINCOLN, IL. Illini BioEnergy, LLC. Sat., Oct. 22. 10 a.m. Real Estate and Personal Property. Donna E. Steineman Estate, STEWARDSON, IL. Gordon Price Auction Service. www.priceauction.com Wed., Oct. 26. 6 p.m. Lawrence Co. Land Auction. John Land and Michelle Land. Gregg Parrott, Auctioneer. www.sellafarm.com Thurs., Oct. 27. 10 a.m. LaSalle Co. Farmland Auction. Estate of Doris E. Chalus, UTICA, IL. Dick McConville and Jim Elliott, Auctioneers. www.mcconvillerealty.com, www.elliottauctions.net, www.auctionzip.com id 2927

L S

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

FarmWeek Page 14 Monday, October 3, 2011

profitability

Scams abound: Vigilance more important than ever

BY PETE TROTTER

We all love a good scam.

Who can forget Paul Newman and Robert Redford in “The Sting,” or George Clooney and friends in “Ocean’s Eleven?” In the movies, a good scam is a good time.

Real life is different.

Many people Pete Trotter experience the harm caused by real scams.

Increased use of the Internet has exponentially expanded exposure to scams. Cybercrime currently impacts more than 400 million adults, with nearly $400 billion in estimated costs.

Internet-based scams include fraudulent Internet auctions and sales. Facebook and e-mail “phishing” scams involve the solicitation of personal and account information. E-card virus e-mails and other harmful “spam” e-mail gain unauthorized access to information and damage accounts and systems. Abuse of online photo-sharing can lead to identity theft, property and violent crime, and embarrassment from unintended use.

Internet scam techniques are sometimes combined with “low tech” means to defraud individuals. For example, mail

theft, unauthorized credit card charges, fraudulent credit repair and debt collection practices, certified check fraud, and mortgage rescue schemes may involve electronic, telephone, and in-person activity.

The most pervasive form of scam in recent years is identity theft. More than 250,000 complaints of identity theft were reported to the Federal Trade Commission in 2010, representing 19 percent of all complaints received. Identity theft is particularly concerning because it constitutes an initial step that often is followed by other criminal and fraudulent activity.

While consumer-oriented fraud obtains the most press, businesses are targets for more than mere access to consumer information. Businesses can

U.S. meat and poultry production is headed for what researchers at the Rabobank International Food & Agribusiness Research and Advisory (FAR) group anticipate to be a “precipitous fall” by mid-2012.

Beef and broiler supplies are expected to tighten as production increasingly lags behind gross domestic product (GDP) growth.

FAR’s “Where’s the Beef ?” report notes that drought in the U.S. is a major contributor

Feeder pig prices reported to USDA* Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

Range Per Head Weighted Ave. Price $13.00-$48.90 $29.72 $35.00 $35.00 n/a n/a This Week Last Week 13,497 22,752 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $84.10 $84.22 $62.23 $62.32

Change -0.12 -0.09

USDA five-state area slaughter cattle price Steers Heifers

(Thursday’s price) Prev. week This week 117.00 115.97 n/a 116.03

tional harm and costs incurred by customers and employees.

When small businesses are involved, there is little distinction between harm caused to the individual and damage to the business.

So what can you do? Preventative measures include

to the production decline. But the report finds that global meat and poultry production is in the midst of a multi-year process of adjusting to higher and more volatile feed costs.

Since the U.S. is a large and significant exporter of meat protein, the decline also will affect world markets as well as demand for feed, notably corn.

“The drastic decline in protein production we anticipate will be felt in a number of industries,” said David Nelson, FAR global strategist. “We expect the decline will create concerns for everyone from food service operators to corn producers.”

Per capita meat consumption in the U.S. appears to have peaked, according to the report.

The poultry industry, in particular, should no longer count on rising domestic demand as a means of growing its way out of over-production situations.

However, a rising GDP in the developing world is contributing to an increasing global appetite for meat protein.

“The greater global demand for meat protein is the key driver to rising feed costs, which in turn drive up the cost of raising animal protein,” Nelson said.

“Global meat and poultry production continues to significantly lag GDP growth, which is, of course, the key factor behind rising prices.”

Given the long cattle-production cycle, as well as a relatively high feed conversion ratio, beef is the protein sector least able to cope with structurally higher and more volatile corn prices.

Extreme drought conditions in the South and Southwest and many areas, specifically Texas, are resulting in significant herd liquidation. As a result, the report predicts U.S. beef supplies will be plentiful

when the cattle currently in feedlots come to market, but the long-term impact will include a dramatic decline in beef production by mid-2012.

“U.S. beef production could be running as much as seven percent below comparable 2011 levels by the third quarter of 2012,” Nelson said.

The report indicated there could be a double-digit percentage decline in beef available for export in the second half of 2012.

The report noted the U.S.

Pete Trotter is GROWMARK’s associate general counsel. His e-mail address is ptrotter@growmark.com.

U.S. meat production projected to shrink in 2012

M A R K E T FA C T S

Carcass Live

be subjected to identity theft, counterfeit checks, and other financial crime, software virus attacks, and more complicated fraudulent schemes.

The financial burden of a scam can include direct damage to the business and indirect damage such as reputa-

monitoring accounts; avoiding unfamiliar vendors and sources for downloads; implementing firewalls; utilizing mobile alerts; and other ways to learn about problems; minimizing information in regular mail; e-mail, and social media; and remaining skeptical about “too good to be true” opportunities. To some degree, preventative measures reflect common sense.

Ultimately, we want to keep scams at the movies, but they may not be avoidable. When they occur, immediate response is crucial, including contact with financial institutions, law enforcement, and credit reporting agencies.

Change 1.03 n/a

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 131.56 1.86

This week 133.42

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-150 lbs. for 165-200 $/cwt. (wtd. ave. 180.20); dressed, no sales reported.

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 9-22-11 7.4 21.6 34.3 9-15-11 11.1 34.1 24.4 Last year 19.3 25.0 37.0 Season total 32.4 371.9 82.0 Previous season total 42.7 354.9 133.0 USDA projected total 1540 1295 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

broiler industry is suffering some of its worst-ever financial losses. The industry expanded breast meat output at a time when demand has been softening due to the weak economy.

Despite some cutbacks in bird production, the report predicts profits will remain under pressure into early 2012.

Swine is the bright spot in the report. The report suggests that in 2012 hog prices could end up on average 10 percent higher than the record levels seen in 2011.

Class III milk price plummets The Class III price for milk adjusted to 3.5 percent butterfat for the month of September was $19.07, a $2.60 decrease from the previous month’s announcement.

This lower price posting has virtually wiped out any gains seen in the market since June.

Production is starting to increase due, in part, to cooler temperatures and more cows coming into the milking herds. Producers also are starting to feed off of new silage piles, further boosting production.

Page 15 Monday, October 3, 2011 FarmWeek

PROFITABILITY Corn Strategy

C AS H ST RAT E GI S T

Grain supplies not so tight The quarterly USDA grain stocks reports seem to contain more routine surprises than in the past. But, it’s the relatively tight supply of grain that is magnifying their importance.

Certainly, the numbers USDA released for Sept. 1 stocks are generating more questions than supplying answers to the trade. Both the corn and wheat Sept. 1 stocks were higher than the trade expected to see. And the shock of the wheat number was compounded by the smaller-than-anticipated wheat production estimate on the small grains report.

The universal question seemed to be: what are we feeding livestock in the U.S. if we aren’t feeding wheat and corn at the rates everyone anticipated? And supplies of other feed grains are not plentiful enough to make up for the lack of feeding of wheat and corn.

One factor some in the trade are having difficulty taking into account is the increased use of DDGs in the feed ration. On a corn equivalent basis, U.S. livestock feeders appear to be feeding something near 770 million bushels, annually. That has tripled in the last 5 years, having big implications on the amount of whole corn being fed in this country.

But because the summer quarter is the slowest period for feeding, the amount of DDGs would only amount to something near 115 million bushels of corn. Still, using USDA data, that’s about onequarter of the corn that appeared to be fed, making it a

significant quantity.

The implied feed/residual number for wheat for the summer quarter may have been the biggest surprise. The data suggest summer feeding was the smallest going back to 2002.

With the price relationship that has existed between wheat and corn, we doubt that is the case, a smaller hard red winter wheat crop notwithstanding.

Over the last few months, there have been numerous rumors of different feeding entities importing feed wheat because of the attractive price relative to corn.

Although trade data doesn’t indicate imports have been substantially bigger, we cannot help but wonder if there’s some truth to the rumors and that for various reasons the imports have not been documented for various reasons.

It’s difficult to justify wheat feeding falling 20 percent from last year, when the price ratio has been a huge encouragement to feeding wheat the last few months.

One thing the large corn stocks, combined with the large June 1 stocks, imply is that last year’s crop was probably larger than the current USDA forecast. It’s easy to argue the yield could have been 1 to 2 bushels larger than the 152.8 bushels USDA forecast. Maybe more important, the extra 160 million bushels than expected on Sept. 1 is the equivalent of seeing the new crop yield 2 bushels more than currently forecast.

If yields for this corn crop would rise even slightly, it’s going to make it even more difficult for the market to rally over the next number of months. But, these lower prices might finally trigger the large Chinese buying the trade continually wants to talk about but fails to realize.

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Cents per bu.

ü2011 crop: The postreport collapse last week finally may allow the month long decline to exhaust itself. Contracts are expected to undergo a recovery bounce. Wait for December to rebound to $6.60 to make catch-up sales. We may use a rally there to add to sales. Low prices may spark demand, but the odds of seeing corn prices getting back above $7 have become more remote. Hedge-to-arrive (HTA) sales for late winter/spring delivery still work for farm-stored grain due to the modest futures carry. ü2012 crop: Use rallies to $6 on December 2012 futures for catch-up sales, and maybe add to them. vFundamentals: The latest USDA report took the trade by surprise, pegging corn stocks, 1.128 billion bushels, 17 percent larger than expected. The difference is the equivalent of increasing the new-crop yield 2 bushels/acre.

Smaller exports and feeding along with June’s larger stocks, suggest last year’s crop may have been larger than forecast.

Soybean Strategy

ü2011 crop: Soybean prices fell in sympathy with wheat and corn after the reports, but prices have returned to levels that should stimulate demand.

However, it now may be difficult to get prices back above $12.80 unless South America has significant production problems. Use a rally at that level for catch-up sales. We may even add to them at that level.

An HTA for winter/spring delivery may pay if you can store soybeans on the farm. ü2012 crop: Use a rally to $12.70 on November 2012 futures for catch-up sales. We may add another sale in the $13-$13.25 range. vFundamentals: Fundamentals still may be taking a back seat to financial/economic influences in the soybean complex. New-crop export sales have started to accelerate, but still are lagging the sales pace we experienced the first part of last year. Domestically, the crush margin remains unusually low for early harvest,

but that’s attributable to the significantly slower pace of product export shipments and sales.

Wheat Strategy

ü2011 crop: The break following the latest USDA report should put the market in position to finally establish a shortterm low. Once confirmed, there should be a good rebound.

Wait for a rally to $6.80 on Chicago December to make catch up sales. We may recommend another 20 percent sale if December gets back to there.

Check the Hotline daily. The carry in futures still pays for commercial storage, making an HTA

contract for winter or spring delivery the best sales tool. vFundamentals: The break in wheat prices off the latest USDA numbers may culminate the decline of the last month. The stocks number was especially bearish, 2.150 billion bushels, well above trade expectations. Total wheat production was reduced to 2.008 billion bushels, the majority of the decline coming from a smaller spring wheat estimate.

The passing of the report may allow the focus to shift to newcrop features, especially the dry Southern Plains.

FarmWeek Page 16 Monday, October 3, 2011

pERspEcTIvEs

Is there an App for that job? Check with Rural Development When we’re looking for an answer to something these days, it’s common to “Google it” or ask “is there an App for that?”

It turns out there is an “app” for job creation!

It’s the intended application of USDA Rural COLLEEN Development.

CALLAHAN As a lender, Rural Development’s commitment is to finance the future of rural communities. To that end, USDA Rural Development has been working to pursue some of the same strategies suggested recently in the proposed American Jobs Act. In Illinois, Rural Development has assisted rural commu-

nities in providing the infrastructure and support for innovative businesses that are the key to job creation and retention.

Rural Development assists with building basic infrastructure that supports economic development in rural communities, including electricity, water systems, broadband, and housing.

We create and sustain rural job opportunities and support entrepreneurs from the microenterprise level to largescale manufacturing, so those who live in rural communities don’t have to commute to metropolitan areas in order to support their families and pay their mortgages.

In partnership with other public and private sector businesses, more than 5,600 jobs

have been created or saved in Illinois as the result of loans we currently are providing to rural businesses.

And we continue to improve the economic climate of rural areas by helping develop

The high and volatile agricultural commodity prices of the past 15 months have renewed concerns about food security for low-income net food importing countries.

Recently, a session was organized at the World Trade OrgaROSS KORVES nization’s guest columnist (WTO) public forum to consider rebalancing importers’ and exporters’ rights under the WTO. The WTO has had longstanding debates about export restrictions on agriculture and non-agricultural items. Under the General Agreement on Tariffs and Trade 1994 rules, quantitative restrictions are banned, but there are rules that allow “restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party.” Forum speakers suggested such terms as ‘temporarily’ and ‘critical shortages’ should be clearly defined by the WTO Agricultural Committee.

Several speakers suggested better implementation of existing rules on transparency in the Uruguay Round Agreement on Agriculture. That requires members to “give due consideration to the effects of such prohibition or restriction on

importing members’ food security,” “give notice in writing, as far in advance as practicable, to the Committee on Agriculture,” and “consult, upon request, with any other member having a substantial interest as an importer.”

Participants noted other conferences have called for protection for low-income net food importing countries, but nothing has happened except a ‘carve out’ for World Food Program purchases, which are relatively small. Hope was expressed that actions would be taken at the eighth WTO Ministerial Conference in December.

A 2009 International Policy Council background paper by Siddhartha Mitra and Tim Josling delved deeper into the issues.

The authors recognized that countries impose export restrictions because of their own food security issues or to retain profit opportunities in further processing.

Low income people in the exporting country could be protected by a two-price system in which the government subsidized purchases at stable prices. The other opportunities are on the supply side by holding emergency reserves or increasing agricultural productivity to meet domestic and export needs.

Mitra and Josling explained that in the midst of high food prices in April 2008, Japan and Switzerland proposed that the Doha Round agreement require “any new export prohibition or restriction [to] be limited to the extent strictly necessary” for the country imposing it for production, stocks, and domestic consumption.

Countries seeking to restrict exports would give “consideration” to importers’ food security and how trade would flow without restrictions. Countries would notify the WTO Committee on Agriculture before instituting export restrictions, explaining the nature, duration, and reasons for the measures, and would be required to consult with importers about “any matter related to” proposed export restrictions, with the measure stayed pending consultations.

If differences were not resolved within a certain period of time, the proposed restrictions would be referred to binding arbitration by a “standing committee of experts.”

Nothing that binding would likely survive the WTO process, Doha or otherwise, but highlights importers’ concerns.

The authors made a key point: “It may be desirable to think of export restrictions as more like safeguards.”

additional job opportunities for the underserved rural areas and populations.

Those of us in rural America know that in difficult times, we need to come together to work out a solution that benefits everyone, not just a few or just those in certain geographic areas.

It’s about balance.

What happens when our atmosphere gets out of balance? We have storms. What happens when our systems get out of balance? We get sick. And what happens when we don’t use a balanced approach to our governmental decision-making? We create our own demise.

Elected leaders in Washington need to acknowledge the consequence of one-sided initiatives as they work to support job growth and build a stronger future for all Americans.

A wise man once said that nothing can ever be sliced so thinly as to not have two sides.

His wisdom can be applied to how we find solutions to our current needs.

Consequently, there is an app for job creation! It’s called common sense. And partnering with Rural Development, when rural communities and businesses want to create and sustain jobs, makes good sense!

Importers use safeguards when the domestic market is oversupplied to protect the economic survival of domestic suppliers. Governments use export restrictions when domestic consumers cannot compete with overseas buyers.

Mitra and Josling stated, “So if importing countries have safeguards in the form of temporary import restrictions, why should exporting countries not have similar safeguards?”

Exporters are less likely to use restrictions for fear of losing market reputation.

Importers using safeguards do not have similar worries.

Importers cannot have it both ways in protecting domestic producers from import competition, but have unlimited access to exporters’ supplies when prices go up.

No discussion about food security and importers’ rights would be complete without some thought to intergovernmental commodity agreements and stocks policies. Stabilizing prices with multilateral grain stocks would reduce the need to have import or export restrictions, but the authors note “the history of multilateral action in the area of price stabilization has not been encouraging.”

Mitra and Josling suggested establishment of an “exporters’ code,” which would include the

ending of direct export subsidies and through food aid, export credit guarantees, statetrading entities and export embargoes, and placing limits on export taxes.

This may be attractive to countries that are significant exporters and importers. If it is effective in removing distortions from global agricultural markets, it could be referred to as a “food security code.”

The authors suggest it be negotiated among a smaller group of countries, such as WTO members who account for 80 percent of exports, but the benefits would apply to all WTO members who are importers.

Rebalancing importer and exporter rights under the WTO will require importers to give up some of their current rights if exporters are to give up some of theirs. Achieving greater market access when exporters have large crops may make them more willing to guarantee supplies in short crop years.

This problem will not go away if nothing is done. The Ministerial Conference may be an opportunity to accomplish something because last year is still a vivid memory.

Colleen Callahan is the director of USDA Rural Development in Illinois. Her e-mail address is Colleen.Callahan@il.usda.gov.

Trading partners express export restriction concerns again

Ross Korves is the economic policy analyst for Truth About Trade & Technology. He may be e-mailed at info@truthabouttrade.org.

LETTER TO THE EDITOR Questions child labor law proposal

Editor: In your Sept. 19 issue of FarmWeek your interesting article about a new proposed child labor law, it was stated that any worker younger than 16 was prohibited from climbing a ladder higher than six feet. That sounds totally insane.

That means anyone younger than 16 could not climb a ladder into the haymow since practically no haymow is

lower than eight feet. Also, some of the children have a ladder taller than six feet. Does that mean those taller fun slides that children love would now be limited to only those older than 16?

Maybe the genius who came up with this wonderful new idea was only concerned about young people who work, not those who play.

DON ELLINGSON, Poplar Grove

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