Farmweek sept 23 2013

China’s ferocious appetite for soybeans isn’t likely to d a m p e n d e s p i t e t h e n a t i o n’s slowing economy.....................5

Join Illinois FFA members in pledging never to text and drive as part of the AT&T “It Can Wait” campaign........................................10

Kane County Far m Bureau celebrated two milestones — 100 years of service and donation of more than 1 million meals............12

A service of

Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.

House OKs SNAP cuts; ag conferee compromise possible?

Monday, September 23, 2013

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

As the U.S. House closed in key cuts in nutrition programs, Illinois and Iowa ag officials chastised federal lawmakers for the kind of gridlock they see threatening producers and their states’ powerful ag economic base.

House Republicans narrowly approved a bill Thursday that would cut nearly $40 billion during the next decade from the Supplemental Nutrition Assistance Program (SNAP). The amount compares to a proposed 10-year, $4 billion cut in the Senate farm bill.

The vote was 217-210, predominantly along party lines.

President Obama has threatened to veto the measure.

Farm Bureau hopes the plan can be reincorporated with separate House farm bill proposals and the Senate’s integrated commodity/nutrition package into House-Senate conference negotiations.

The current 2008 farm bill extension expires Sept. 30.

Illinois Ag Director Bob

Flider, on hand at a Quad Cities soy trade conference last week, emphasized the need at this point for “a longterm (farm) bill, not a temporary fix.” Flider urged conferees and congressional leaders to “roll up their sleeves” and find a viable SNAP compromise that can seal final farm bill approval.

Iowa Ag Commissioner Bill Northey agreed that “this just has to get done,” noting a variety of post-extension consequences, including loss of conservation and export promotion funding “that definitely would be missed if this doesn’t get passed.”

Northey is equally concerned by the “political damage” that could result from congressional farm bill inaction, including repercussions for future trade agreements and waterway improvements that could benefit the ag sector and state economies.

“I talk to farmers who say, ‘I’m tired of the drama — let’s get this thing done,’” he told FarmWeek. “They worry about what this means for the future of agricultural politics.

“There’s some suggestion that ag is not significant enough for Congress to come together over. I think this is more a reflection on the inadequacy of Washington to come together over tough problems.”

Conference success likely will depend on “which side will bend the farthest to try to get a (SNAP) compromise,” Illinois Farm Bureau President Philip Nelson said. Nelson cited added concerns about House target price and Senate crop insurance conservation compliance proposals, See Farm bill, page 4

®

Two sections Volume 41, No. 38

HARVESTING THE NEXT GENERATION

Above: Joseph Peters, 9, left, examines corn with his dad, Thadd, as they began harvest last week near Illiopolis in Sangamon County. The 155acre field was yielding an average of 215 bushels per acre at 22 percent moisture. Peters planted the field April 8, just before rain delayed planting until the beginning of May. (Photo by Ken Kashian) Right: Aaron Vercler harvested corn silage on his farm near Washington on a warm September evening last week. Vercler, a Tazewell County Farm Bureau member, said yields and quality of the crop were good.

The silage will be used to feed Vercler’s herd of 40 Holstein cows. (Photo by Daniel Grant)

Flider: Congress must step up for rivers

Illinois and Iowa’s top ag officials see the Mississippi River system providing crucial revenue streams for their respective states and the region as a whole.

But federal support is vital in helping the states and private industry keep crops, fertilizer, energy and, indeed, the entire river-based economy moving.

Illinois Ag Director Bob Flider and Iowa Secretary of Agriculture Bill Northey pitched their ag products to international buyers at the U.S. Soy Global Bob Flider Trade Exchange sponsored by the U.S. Soybean Export Council, in Davenport, Iowa. They also joined in stumping for longawaited lock improvements via Water Resources

FarmWeek on the web: FarmWeekNow.com

Development Act (WRDA) reauthorization as a major step in meeting export demand.

“We’re talking about competition here,” Flider told FarmWeek.

Last week, the House Transportation and Infrastructure Committee marked up its Water Resources Reform and Development Act (WRRDA), setting the stage for fall House approval and conferencing with Senate WRDA provisions.

Flider noted Illinois and Iowa share eight lock systems. Northey stressed, “we’re in this together, and we’re in it with the other folks up and down the river.”

The Iowa ag secretary argued “passing a WRDA alone was not enough.” New 1,200-foot locks on the Upper Mississippi and Illinois See Rivers, page 2

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

Quick Takes

FarmWeek Page 2 Monday, September 23, 2013

YOUNG SOYBEAN LEADERS SOUGHT — If you’re a young soybean grower looking to boost your leadership skills, consider applying for the American Soybean Association (ASA) DuPont Young Leader Program by Oct. 1.

In its 30th year, the program identifies and cultivates farmer-leaders, who are shaping not only the U.S. soybean industry, but also the agriculture industry.

One couple or individual will be chosen per state among ASA’s 26 affiliates. The 2014 class will hold its first meeting Nov. 19-22 at DuPont Pioneer’s headquarters in Johnston, Iowa.

Applications and more information are available at {soygrowers.com/learn/young-leader-program/}.

NCGA SETS MEMBERSHIP RECORD — Call it a membership bin buster. National Corn Growers Association membership rolls recently surpassed 40,000 for the first time – 40,244 to be exact.

Brandon Hunnicutt, NCGA grower services action team chair, chalked the goal up to the fact that grassroots efforts remain the driving force behind the organization serving growers in 28 states.

“Whether working to promote research that increases opportunities or voicing the support of America’s farmers for the Renewable Fuels Stand a rd a n d f a r m b i l l , N C G A d r a w s u p o n t h e strength of its members, so we can accomplish much more together than we ever could acting alone,” said Hunnicutt.

F O U RT H GROW COMMUNITIES LAUNCHED — Thanks to help from local farmers, more than $13 million has been invested in rural America during the last four years through America’s Farmers Grow Communities program.

Until Nov. 30, farmers can enroll in the program at {growcommunities.com} and nominate a nonprofit organization of their choice to receive a $2,500 donation.

Sponsored by the Monsanto Fund, the program reaches 1,289 counties in 39 states. A winner will be selected in each county in December. Winning nonprofits will be announced in January.

CALLING BUDDING FARMER CHEFS — Got a favorite recipe your grandmother always made? Know how to turn ordinary food items into works of art?

If so, consider marking Oct. 19 on your calendar.

That’s when the next audition for Fox’s MasterChef Season 5 will occur from 10 a.m. to 6 p.m. at Le Cordon Bleu in Chicago.

Casting producers are looking specifically for Illinois farmer/chefs. To apply and learn more, visit {masterchefcasting.com}.

(ISSN0197-6680) Vol. 41 No. 38 September 23, 2013 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers.

FarmWeek is produced by the Illinois Farm Bureau.

FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701.

Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek.

FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek.

“Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office.

POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2013 Illinois Agricultural Association

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

TRANSPORTATION

New inland ‘port’ facility highlights partner potential

BY MARTIN ROSS FarmWeek

Decatur may be a long haul from major river terminals or ports, but with development of a new state-of-the-art “Midwest Inland Port,” it’s far from dry-docked.

And the multimodal, container handling enterprise exemplifies the potential of partnerships in fueling freight efficiencies and, prospectively, Illinois economic growth.

Gov. Pat Quinn joined Archer Daniels Midland Co. (ADM) executives, legislative representatives and community leaders Thursday in a ribbon-cutting for ADM’s Intermodal Ramp, located on a 250acre site within the ag processing giant’s Decatur complex.

Quinn deemed the dedication “a very key moment in our economic history in Illinois.”

He believes the inland port will help propel Illinois’ position as “an economic powerhouse for the state, for this country and for the world.”

The facility will be served by three major Class I railroads — Norfolk Southern, Canadian National and CSX. It offers cost-effective truck access via nearby Interstates 72, 74, 55 and 57 and U.S. 51, according to ADM Transportation President Scott Fredericksen, “five toll-free, congestion-free roadways.”

The ramp yard, in the shadow of Caterpillar’s Decatur operation, features two highcapacity cranes that can handle 50,000 containers per day and, eventually, process 150,000 “boxes” daily in and out of the area.

“Within a day’s drive of Decatur, there are 95 million people,” Quinn emphasized.

“We are right in the center of a great economic opportunity.

We have to seize that opportunity, and we have to work together.”

ADM began the project

Rivers

Prior to dedicating the site of Archer Daniels Midland Co.’s new Intermodal Ramp at Decatur, Illinois Gov. Pat Quinn, center, chats with dignitaries, including ADM Transportation President Scott Fredericksen, left, and Chief Operating Officer Juan Luciano, right. (Photo by Martin Ross)

four years ago with acquisition of a former Canadian National (CN) rail yard and plans to connect CN and Norfolk Southern lines. CSX joined the network, setting the stage for a central hub comprising “three of the seven Class I railroads in North America,” Fredericksen said.

ADM then networked with top container companies including Maersk, APL, Hapag Lloyd and Mediterranean Shipping Co. to have the yard approved as a “container depot.”

ADM reportedly ships some 68 million metric tons of products by rail each year,

Continued from page 1 Rivers, authorized under the 2007 WRDA bill, have yet to materialize amid a lack of federal funding.

House-Senate proposals would encourage joint public-private partnerships to help underwrite lock upgrades, and ag groups seek a shipper-supported hike in barge fuel taxes to replenish private navigation cost-share dollars.

River investments will “pay off for this country for the next several generations,” Northey said.

“Iowa can’t do this alone; Illinois can’t do it alone — we need the assistance of the federal government,” Flider said. “These days, when our federal and state leaders are doing their best

including 2 million tons of export grain per month. The inland port not only should facilitate ADM movements but also provide for expansion of central Illinois businesses and foster startup companies with international ambitions, Fredericksen said.

“Imagine what this intermodal ramp means,” Fredericksen said. “A parts company in Bloomington can ship product to Scotland, a technology company in Champaign can import semiconductors from China or India and a toolmaker in Springfield can export wrenches to Russia and Romania.”

to make dollars go farther, we find the challenge is also in working with industry to see if they have some additional ideas on how to update facilities.

“We also need to make sure those facilities are ready for the needs of the next 50 or 100 years of shipping. It’s vitally important that we somehow try and wrap our arms around what’s going to be needed in the future.”

Flider applauded shippers willing to “put (their) own money on the line” via a fuel tax increase.

Conservative lawmakers may feel “some nervousness” about approving even a voluntary hike, but their failure would mean “a lack-of-infrastructure cost” for farmers, manufacturers and consumers,

RESEARCH

Page 3 Monday, September 23, 2013 FarmWeek

Frank Ireland, University of Illinois animal science researcher, watches real-time images of employees sorting heifers at the Dixon Springs Agricultural Research Center near Simpson. (Photo by Kay Shipman)

Technology explodes Dixon Springs’ prospects

BY KAY SHIPMAN FarmWeek

University of Illinois Extension educator Teresa Steckler examines a stand of tropical maize at the Dixon Springs Agricultural Research Center near Simpson. (Photo by Kay Shipman)

Tropical maize reaching new heights, multiple uses

A southern Illinois plot of tall, lush corn looks impressive, especially considering its July 26 planting date. Then add the fact that it has received little rain and no nitrogen.

Tropical maize is making its debut at the University of Illinois Dixon Springs Agricultural Center near Simpson. The maize, which is a cross between tropical- and temperate-adapted parents, is a multi-use crop that grows 12 to 15 feet in height.

“It’s never been planted this far south in Illinois,” said Teresa Steckler, a U of I Extension educator based at Dixon Springs.

“It’s just been planted and left to its own devices. We wanted to see what it would be in its natural state,” Steckler said.

The maize’s natural state was tall and green last week. A closer look revealed some insect damage on the leaves, which Steckler speculated could be caused by grasshoppers.

But the few holes didn’t threaten yields and the maize hadn’t been treated for any pests or diseases.

Steckler and fellow U of I researcher Laura Gentry are interested in the maize’s potential as an alternative cattle feed.

“We’re trying to find an alternative feed that grows quick and doesn’t require a lot of water,” Steckler said.

Preliminary trials showed

the maize has good feed value when ensiled and grazed. A feeding trial of tropical maize silage will start soon on the Urbana campus.

At Dixon Springs, Steckler has a small plot of two tropical maize varieties. She may chop some as feed for bulls and gauge their response.

In addition to its feed potential, tropical maize is a promising biofuel crop because of its biomass and high sugar content. The crop produces little, if any, grain and instead accumulates high levels of sugar in the stalks.

Next year Steckler hopes to work with several cattlemen interested in a pilot project.

“We’d like to see how it grows in different soils and how it produces,” she added.

Steckler envisioned plots of half of an acre to one acre of tropical maize that would be used for grazing.

Tropical maize will be discussed at upcoming beef meetings in the Waterloo and Olney areas in late fall or early spring.

Steckler also is planning two or three meetings on integrated pest management for small ruminant producers in late fall or early spring. The main focus will be analyzing and assessing animals’ need for parasite treatments.

FarmWeek will provide additional information when it becomes available. — Kay Shipman

Cattle at the University of Illinois Dixon Springs Agricultural Research Center near Simpson soon will be teaching tools in Urbana and other locations in Illinois and elsewhere.

High-speed Internet, fiber optic cable and new digital cameras can bring the world to the university’s southernmost research farm. Since Aug. 23, three cameras have been mounted in the rafters of a beef building, dubbed the video barn.

“We can send this image (of cattle) to any classroom and they can view it in real time,” Frank Ireland, Dixon Springs animal science researcher, told FarmWeek last week.

“We see a lot of unique things we can broadcast directly to Vet Med (college) or Animal Science (department). They can see it and not have to drive for hours,” Ireland said.

The system already helped when a veterinary medicine professor was able to view a bull’s injured leg, a suspected snake bite injury, online instead of hearing a description over the phone.

Dixon Springs now has 100megabyte Internet capacity. Ani-

mal production research data can be transmitted instantaneously to the Urbana campus.

Previously, staff manually entered and sent data, which resulted in delays.

Ireland envisioned Dixon Spring’s new technology transforming its cattle into nearly limitless teaching tools.

“We have 1,000 cows and heifers we will breed this fall.

We’re having 40 to 50 calves born a day,” he said. He projected vet med students could watch a cow give birth on screens in a student lounge. For students who’ve never seen a cow give birth, it would be a unique opportunity, Ireland added.

Community college and veterinary technician students also may gain from an opportunity to watch different animal production practices, he added. As a teacher, Ireland imagined his students in livestock judging and animal science benefitting from the real-time images.

The technology allows researchers to observe animals’ behavior at any time without influencing the cows’ reactions.

The addition of interactive capability, such as sound, is being discussed. An ability to

hear sound and ask questions would be an advantage for seminar and workshop participants who couldn’t attend a program, but could participate on a home computer, Ireland noted.

“I see great opportunities for cooperative work,” Ireland said.

In the interim, Dixon Springs staff members are working with the Urbana campus on security protocols, Ireland said. For example, class or workshop participants might be issued a login and some type of security clearance to view the images.

Electronic feed bunk, tags measure cows’ every bite

Some heifers aren’t able to the Canada-based GrowSafe sneak any snacks because their Systems equipment, according electronic ear tags and special to Ireland. The U of I Urbana feed bunks measure and record research farm also uses the syseverything they eat at the Unitem. versity of Illinois Dixon The feeding data is transSprings Agricultural Research ferred instantaneously to the Center near Simpson.

Urbana campus for analysis and The 137 heifers are part of a is specific to each animal. Previfeed efficiency and genetics ously, similar feeding studies improvement study, according averaged data on pens of 10 anito Frank Ireland, an animal scimals, Ireland explained. ence researcher at Dixon In addition to studying the Springs. animals’ feed efficiency, Last week, Ireland watched a A heifer wearing a digital ear tag researchers also will study the computer monitor with green pauses between mouthfuls. (Photo by cows’ DNA. bars that moved up and down Kay Shipman) “We are collecting DNA samor switched colors. Each bar ples from all the animals to see if represented a heifer and tracked we can identify the genes when she ate or pulled her head from one of 16 responsible for feed efficiency,” Ireland said. feed bunks. “It records every bite,” Ireland said “We expect in the next several years to make of the electronic system. advancement in feed efficiency,” he said. — Kay Dixon Springs joins 25 to 30 locations using Shipman

TRADE

FarmWeek Page 4 Monday, September 23,2013

U.S., EU recognize mutual need for trade agreement

BY MARTIN ROSS FarmWeek

Amid a changing global market dynamic, U.S. and European trade observers stress the need to keep agriculture at the table for U.S.-European Union (EU) free trade agreement negotiations, even if the table talk may be contentious.

While “I know there are a lot of skeptics,” USDA Foreign Ag Service Career Minister Suzanne Heinen sees hope for a successful accord. She definitely sees a need. The U.S.’ EU market share continues to shrink, and new market penetration “remains constrained by tariff and nontariff barriers.”

John Dardis, first secretary for agriculture and food with the Embassy of Ireland, shared Heinen’s concerns about an agreement at last week’s soy global trade exchange in Dav-

enport, Iowa. He notes his country annually exports nearly 500,000 tons of beef. Ireland’s the world’s fourth largest beef supplier despite being “the size of North Carolina.”

Dairy also is reportedly “massive” for the Northern European nation. He estimated that one in seven Irish jobs rely on agriculture or food production.

At the same time, despite recent economic setbacks and an alarming Irish unemployment rate, Dardis maintained the EU with 500 million consumers remains “a huge market for U.S. investments” and commodities.

“Quite often, agriculture can be the sacrificial goat in any free trade agreement,” Dardis nonetheless warned. “Agriculture has to be part of this. And we have no choice but to get this done.

“This deal is here because

EU faces global realities, consumer pressure in trade

John Dardis, first secretary for agriculture and food with the Embassy of Ireland, urged Illinois Farm Bureau Leaders to Washington not to “concentrate on the negatives” surrounding U.S./EU trade talks.

At the same time, he noted the pressure EU consumers and activists continue to place on politicians and farmers and, therefore, on EU negotiators.

Because of past EU issues with BSE in cattle and dioxins in foods, “if we mess up anywhere along the chain, we’re finished.” The EU is likely to stand firm on longstanding restrictions on U.S. hormone-produced meat because “our consumer doesn’t want that,” Dardis advised.

Consumers meanwhile have driven the EU’s push for ag “sustainability” — assurances farmers meet environmental and even social expectations. Those criteria extend from acceptable agronomic practices and water, energy and pesticide use to “how we work with people,” EU Agriculture Counselor Giulio Menato noted in a meeting with IFB leaders.

The leaders were more concerned abut EU interpretation of ag product sustainability than about U.S. ability to meet true “sustainable” expectations.

Menato deemed Brazil “pretty client-oriented” in terms of sustainable product certification, and told farmers they basically must be “able to prove (product) is sustainable.” The EU would respect USDA certification, he suggested.

The EU is adamant about “geographical indicators” — concerns about foreign identification of products that originated in a specific European region — out of a more market-driven thrust.

Europe is reliant on exports of wines, spirits, beer, cheeses and other “high-value products” with a strong branded identity.

The EU thus is protective toward gorgonzola and parmigiano reggiano cheeses, champagne and Scotch whisky.

Biotechnology is a major hot topic surrounding U.S.-EU talks. But attitudes about genetically engineered imports appear to be changing.

Menato stressed “we have GMOs in Europe” and restrictions focus on biotech “seed” — grain or oilseeds rather than processed products such as ethanol from which “the (biotech) event disappears.” EU officials recognize biotech’s role in global growth, Dardis said.

At issue is what Dardis deemed the “lag phase” between EU and other global biotech approvals “and how you fix that.”

Menato urged negotiators to “work toward harmonizing (trade standards) as far as possible” and focus on “equivalent” U.S.-EU safeguards, such as USDA meat inspection. But he advocated moving “system by system” in addressing veterinary, biotech, sanitary-phytosanitary and related issues, rather than making sweeping changes. — Martin Ross

we’re screwed and you’re screwed. The world is moving on without us.”

The U.S. and the EU must resolve key phytosanitary, biotech, environmental sustainability “and many, many different problems” before reaching an accord, Heinen stressed (see accompanying story). But, as EU Agriculture Counselor Giulio Menato recently told Illinois Farm Bureau Leaders to Washington, “you are the first customers in terms of (EU) exports.”

The EU’s actively pursuing other trade relationships on a largely regional basis. Menato noted “we are a ‘union’ — we like other unions.” An EUCanadian accord is “almost finished,” and the EU is embroiled in what he termed a “challenging negotiation” with India.

With an EU-U.S. agreement in place, “you will become preferred partners,” Menato told Illinoisans. That’s key with Brazil now ahead of the U.S. in

European Union (EU) Agriculture Counselor Giulio Menato, center, shows Illinois Farm Bureau Leaders to Washington the “coordination room” of the EU’s Washington embassy, where delegates from the union’s member states gather. (Photo by Martin Ross)

terms of EU ag sales, he said.

U.S. producers could recapture that top spot, especially given the EU’s “platform of

transforming product,” he said.

“We import commodities; we export processed products,” Menato said.

Export promotion programs offer new soy ‘interactions’

Midwest growers hobnobbed last week with buyers from 47 countries. But the U.S. Soy Global Trade Exchange offered a too-rare opportunity for a stateside sales pitch.

United Soybean Board (USB) Director Bob Metz said an estimated 2 billion people worldwide will reach middle-class status by 2028.

Those consumers “can choose to put meat into their diet,” offering new U.S. corn and soybean prospects, the South Dakota producer noted.

But with the 2008 farm bill extension expiring Sept. 30, Metz and Iowa USB director Larry Marek are concerned about loss of funding for the federal Market Access Program and Foreign Market Development program, which promote U.S. ag products abroad.

In order to adequately pitch U.S. “quality, purity and sustainability,” Marek argues “we have to interact” with foreign buyers via global trade shows and other promotions.

“It’s about a personal relationship with those customers,” Metz told FarmWeek.

USB represented a number of emerging opportunities: • Fish, feed and folks. USB Vice Chairman Jim Call, a Minnesota producer, sees a growing worldwide appetite for fish. However, he notes the world’s ocean catch is “dropping dramatically,” and “aquaculture’s the largest-growing meat sector in the world.”

China can easily consume its own captive

Farm bill

Continued from page 1 but noted “a lot can change once you get a finished (conference) product.”

Flider noted “the nutrition component and the ag component traditionally have gone hand-inhand” in farm bill debate, ensuring mutual interest among both urban and farm state lawmakers.

production. USB thus is looking at aquaculture expansion beyond Asia using soy-based diets more environmentally sustainable than fishmeal rations.

• India in-depth. India’s population is expected eventually to surpass China. “We think we have just as much potential in India as in China,” Metz said.

India is a soy exporter, but it lacks storage capacity and timely transportation, and its soy meal is of relatively low quality. Unlike Brazil, India harvests simultaneously with the U.S. and in some ways is “a bigger competitor than our South American friends,” Metz said.

Current hope lies in “reverse marketing” — inducing India to become a smarter soy user and importer. As poultry demand grows among middle-class Indians, India can consume its meal rather than exporting it. “We want to pick those (buyer) countries up,” Marek said.

• The Middle East situation. USB recently opened a new office in Dubai focusing on Middle East and African markets. Despite the Middle East’s arid image, Call notes it has “some really nice waters to grow fish in.”

“There’s a huge young population growing up in those countries,” he told FarmWeek.

“As their economies improve, those people are going to be wanting soy products, they’re going to be wanting meat.” — Martin Ross

“There’s a reason there’s a partnership,” Flider told FarmWeek. “People have worked very, very hard over the years to make that work, and if it’s not going to work, there’s probably going to be some element of difficulty not only for some consumers but also for the (ag) industry.”

TRADE

Page 5 Monday, September 23, 2013 FarmWeek

China expected to import more beans despite slowing economy

BY DANIEL GRANT FarmWeek

China’s slowing economy isn’t expected to have an immediate impact on its ferocious appetite for soybeans.

China, which buys more than 60 percent of soybeans sold in the world market, is expected this year to import

‘ To t a l v o l u m e from the U.S. soy industry still will increase.’

— Xiaoping Zhang U.S. Soybean Export Council

more than 60 million metric tons (2.2 billion bushels) of beans compared to 58 million metric tons a year ago, according to Xiaoping Zhang, country director/China, for the U.S. Soybean

Export Council.

“We have slowing economic growth,” Zhang told FarmWeek last week at the U.S. Soy Global Trade Exchange in Davenport, Iowa. “But there still is growth.”

Soybean demand in China has skyrocketed the past two decades as the Chinese have expanded livestock production, balanced livestock rations with more protein and shifted crop acres from beans to other crops.

Since 1996, U.S. sales of soybeans to China have increased about 23 percent annually, noted Shang Qiangmin, director general of the National Grains and Oils Information Center in China.

“The growth in protein demand (from the livestock sector) has resulted in increased vegetable oil imports,” Qiangmin said.

“Our prediction is in the next two to three years the growth rate will remain high. We need

U.S. growers to continue to plant and produce a steady supply (of beans).”

Li Xirong, secretary general of the China Feed Industry Association, estimated feed output in China the next couple years will increase by 6 million to 7 million tons annually.

“The pace of importation won’t slow the next couple years,” Xirong said. “The livestock industry still is growing rapidly.”

The U.S. will continue to have strong competition from South America to supply China with beans.

The U.S. share of soy sales to China decreased from 52 percent in 1996 to 45 percent last year. Chinese soybean purchases from Brazil during the same time increased from 20 percent to 41 percent of the overall market share, primarily due to price.

“With expansion of South American production we may lose market share,” Zhang said. “But total volume from

Li Xirong, secretary general of the China Feed Industry Association, addresses a large crowd at the U.S. Soy Global Trade Exchange in Davenport, Iowa. Xirong predicted feed output in China will grow 6 to 7 million tons annually the next couple years, which will require importation of more soybeans. (Photo by Daniel Grant)

the U.S. soy industry still will increase.”

Soy sales to China beyond the next couple years could slow, though. China’s economic growth declined more than 2 percent last year and

that trend is expected to continue.

Meanwhile, the average growth rate of oil consumption is slowing, and China also is buying more palm oil and distillers grains.

Giving to get: Traders exposing ‘sensitivities’ countries will accept pain without significant gain. Vietnamese Ambassador to the U.S. Nguyen Quoc Cuong sees the accord — “the most ambitious trade arrangement today” — offering heightened market

populations.” But Majorga noted Mexico’s status as the In an increasingly cutthroat world’s top avocado exporter is world market, key trade partbeing challenged by Peru and ners/competitors may be upstart Chile. Mexico hopes its reluctant to throw up the organic coffee can challenge white flag, but they’re willing Colombia’s “worldwide reputato talk. tion of highUSDA Forquality coffee.” eign Ag ServCuong meanice Career while admonMinister ‘We also demand a reciprocity.’ ished the U.S. Suzanne on the need to Heinen told give more in FarmWeek — Nguyen Quoc Cuong order to get, Vietnamese ambassador to the U.S. ongoing citing the U.S.’ Trans-Pacific comparatively Partnership light free trade (TPP) free push relative to trade talks will the Asian highlight nations. “cross-cutting Heinen notissues in many, ed some 260 many different sectors.” access for U.S. corn, beans, “preferential trade agreeTalks currently involve beef, pork, poultry and indusments” are in force around Australia, Brunei, Canada, trial goods. Cuong deemed the globe, “20 of which the Chile, Japan, Malaysia, Mexitrade liberalization integral to U.S. has signed onto.” The co, New Zealand, Peru, Sin“the success stories of the European Union has agreegapore, Vietnam and the U.S. ments with 45 countries and Asian-Pacific region.”

“Every country’s going to continues negotiations with But the ambassador told have some sensitivities,” FarmWeek “we also demand a 87 nations. Canada has agreeHeinen stressed. Under the reciprocity” in terms of boost- ments with 13 countries, but TPP, however, participants is aggressively courting ing textile and related sales to essentially have agreed to put the U.S. via an agreement. “some key export destinaeverything on the table. tions,” Heinen said.

Mexico, as well, is now That means Japan should The U.S. has a mere three willing to discuss “very delibe willing to discuss rice con- cate export products” preforeign trade agreements withcessions, while Vietnam is cluded from past agreements, in the Asian/Pacific region opening its crucial textiles including sugar, coffee, cocoa with Korea, Australia and Sinsector to negotiation. And gapore, Cuong said. “The and rubber, former Mexican “it’s no secret that sugar’s result? U.S. exports to the Ag Secretary Francisco Mayalways somewhat of an issue Asia-Pacific have declined orga said. for the U.S.,” Heinen noted.

Many of those products are sharply, by 43 percent, over the That doesn’t mean TPP produced by “small indigenous last 10 years,” he said.

BY MARTIN ROSS FarmWeek

Trust key U.S. asset in Vietnam

Quality and trust are two factors favoring the U.S. under a prospective Trans-Pacific Partnership (TPP) agreement, according to Vietnamese Ambassador to the U.S. Nguyen Quoc Cuong.

During last week’s U.S. Soy Global Trade Exchange, Cuong reported he and other TPP country ambassadors would “reach out” to U.S. policymakers in support of the agreement. He noted the TPP countries represent 40 percent of the world population and 30 percent of global trade, with Vietnam alone offering 90 million consumers with growing incomes.

“In terms of size, Montana is a little bit bigger than Vietnam,” Cuong told FarmWeek. “But every year, we see an additional population (the size) of Montana’s.

“Ninety percent of the population is under 60 years of age, and more than 50 percent is under 35 years of age. It’s a young population, and for the past almost 30 years, our GDP (gross domestic product) growth rate has been between 7 and 8 percent. Middle-income people are increasing rapidly in Vietnam, and they want better products.”

In late July, Vietnamese President Truong Tan Sang told President Obama his country was willing to open new markets for U.S. ag and industrial products and services.

The pair pledged to support completion of a TPP agreement this year, and Cuong believes addition of Japan’s “economic might” to the talks offers “a big push for the TPP in general.”

U.S. exports to Vietnam reached $4.7 billion last year — according to Cuong, a roughly 130 percent increase from 2007.

Ag goods accounted for nearly $2 billion in 2012 sales, and the ambassador suggests U.S. soy and related purchases could rise to $3 billion this year.

Among other items, Vietnam’s increasingly affluent consumers want more animal protein and the means to produce it.

“Vietnamese businessmen and women coming for this conference told me they wanted to import more U.S. soybeans,” Cuong said. “Quality matters, and the trust they have in doing business with the U.S.” — Martin Ross

FarmWeek Page 6 Monday, September 23, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Some very nice late season rains are the biggest news this week here in northern Illinois. We had 0.9 of an inch on Sunday (Sept. 15) and another 0.5 of an inch total in three separate rains throughout the week. Soybean harvest hasn’t started, but it probably will next week. Corn harvest has started in a small way. The good ground has very good yields, and the thinner, lighter soils are not as good.

The range I’ve heard is 80 to 200 bushels per acre. Have a safe harvest.

Pete Tekampe, Grayslake, Lake County: Last week finally brought us some rain. We got 1.3 inches on Sunday (Sept. 15) and another 0.2 of an inch on Thursday.

Corn is browning fast and looks good. Beans in heavy black ground are green and probably gained from this moisture. Early beans are turning fast, but unfortunately, they are small. The hillsides and lighter soil beans are done and are also little. We are still about two weeks from combining because of the low, green areas. Think safety.

Leroy Getz, Savanna, Carroll County: Much needed rains fell in three different storms totaling 2 to 2.5 inches in various locations.

Combines have been running with reports of very good to record-setting yields – 200 to 250 bushels per acre at 25 to 30 percent moisture on the early varieties. Wheat and rye has been sown and should now emerge with the rains we received. Be careful as this fall harvest begins.

Ryan Frieders, Waterman, DeKalb County: We have had a couple periods of showers to recharge the groundwater. Soybeans and corn have both started to lose their color.

Silage chopping is complete. Fall is in the air. The big news on our farm is the addition of a baby girl.

She already told me she can’t wait to be a farmer. This daddy is very happy.

Larry Hummel, Dixon, Lee County: With the rains coming every couple of days, there wasn’t a whole lot of harvest activity this week. We did get the combine running a little on Thursday before another shower rolled through.

Spent most of the time calibrating and getting used to the new machine. Moisture was running around 24 percent, but yields will still be unknown until we get that calibrated. It will definitely be below average; maybe 35 bushels by my estimation.

Ken Reinhardt, Seaton, Mercer County: We had a nice rain overnight (Sept. 19), more than a half-inch. Might be the biggest rain since early June. Early corn harvested so far has been more than 200 bushels per acre. Yields will drop severely as planting dates progressed on into mid-June. A few soybeans have been cut with average yields for the maturity. The stalk quality is not very good on much of the corn.

Ron Moore, Roseville, Warren County: We received 1 inch of rain Thursday night. That is the most rain we have had since late July. It may help the late soybeans, but not much. We did start harvest last week and the first field was somewhat of a disappointment.

The moisture was in the high 20s and yields from 100 to 150 depending on where the water stood last spring.

There are no beans ready in this area. Just a few fields are turning yellow. Harvest will get into full swing next week after it dries out.

Tim Green, Wyoming, Stark County: It was mostly another dry week. Friday morning we woke up to a little bit of rain. The key word is a “little.” A small amount of harvesting has been going on. In general, the corn yields have been pretty good. I’ve heard a few that weren’t quite up to expectations, but in general, they are what people thought or a little above. I’ve only heard of a couple fields of beans that were cut. Very disappointing. Beans were not very good, but we’ve only done two or three fields. Be safe.

Jacob Streitmatter, Princeville, Peoria County: Harvest has started slowly across the county; only a few fields have been taken out or opened up. Too early to tell the corn yields, but soybean yields cannot be good since there has been no rain since Aug. 1. Now it is too late as they are getting ripe. The story will be told in a few weeks.

Mark Kerber, Chatsworth, Livingston County: The harvest moon was upon us a couple of nights ago. Not a lot of harvest activity with this moon though.

Corn that has been harvested is still a little wet with yields of 80 to 200 – quite a range. One neighbor had a field of triple-stack corn that was devastated by corn rootworms. Are traits becoming resistant to these pests? Corn prices are creeping down. Soybeans are staying steady. What would a nationwide bumper crop do to prices next year?

Ron Haase, Gilman, Iroquois County: Harvest has begun.

Some soybeans were harvested, beginning on Sept. 17. That was one day earlier than the start of soybean harvest last year. Some soybean fields are still at the full seed stage, while many fields are at R7 or R8. I hand-sampled some of our corn that might be our first to harvest. One sample was 19.8 percent moisture and the wettest sample was 27.7 percent. The driest sample came from corn that died prematurely during the hot and dry conditions. On the other hand, we have corn that has the milk line 40 percent of the way down the kernel. On Thursday, we received 0.3 to 0.6 of an inch of rain on our farms. The local closing bids for September 19 were nearby corn, $4.59; new-crop corn, $4.45; nearby soybeans, $13.39; new-crop soybeans, $13.28. The premium for nearby corn has disappeared at some locations.

Brian Schaumburg, Chenoa, McLean County: Harvest began in earnest as we took out 100 acres of corn on corn before the storm system moved through with only a sprinkle. The only surprise is that moisture levels are as low as 19 to 22 percent on 112-day corn. Yields are right where they were checked, 180 to 200 bushels per acre catches most with wide variations within fields. Potential was tremendous had weather cooperated in August. Soybeans will go next week. Corn, $4.55; Jan., $4.58; fall ‘14, $4.65; beans, $13.25; Jan., $13.12; fall ‘14, $11.38; wheat, $5.98.

Steve Ayers, Champaign, Champaign County: Light rain started about 2 a.m. Friday. There seems to be dueling rain forecasts, ranging from totals of 0.07 to 0.75. I am rooting for the 0.75 inch!!! If we miss this rain chance, there isn’t much of anything the rest of Sept.

Our crop reporting district has 86 percent corn dent and 31 percent mature. Beans are 47 percent turning yellow and 14 percent dropping leaves. There is some harvest activity, mostly end rows looking for dry corn. One farmer reported same variety, same plant date with 19 percent on one end and 29 percent the other end of the field. One bean field reported 55- to 60bushel yield. Hearing some 200-plus corn yields also. Let’s be careful out there!

Wilfred Dittmer, Quincy, Adams County: We received 0.5 of an inch of rain through Thursday night. We still have most of the large cracks in the cornfields.

Some machines are rolling in the early planted fields. Soybean fields are a different story. I have not seen any full fields that are ready, but the calendar says it is time for fall, so another year will soon be history.

Have a safe week.

Kevin Raber, Browns, Wabash County: Rainfall amounts of around 0.3 of an inch fell this past week. Corn harvest is progressing and most yields I’ve heard have been good. The moisture content is slowly falling. There will be some beans harvested soon. If we can get good weather, I would guess there will be beans harvested before my next report.

Todd Easton, Charleston, Coles County: After a quick start last week, harvest slowed down to very little activity when the scarce April-planted corn acres ran out. A few producers nosed into their May plantings. After finding corn moisture in the 30s, the majority pulled back out. After several reports of the April corn yielding around the 200-bushel mark, many are anxious to see how the other 98 percent of the crop planted in May compares. I can only hope the soybeans don’t fall below 40 bushels per acre, but I don’t think anyone would guarantee it will. Next week will probably see combines start back up in corn and maybe some bean fields.

Jimmy Ayers, New City, Sangamon County: We had 0.3 of an inch of rain on Thursday evening. Beans have started to show some yellowing, but still a lot of green. Several have attempted to shell corn. I have heard as low of 17 percent into one of the terminals in the area, but 22 to 28 seems to be the norm. Anything we tested was 27 to 30 percent on our earliest corn. We still have some that hasn’t black layered yet. We did sow some oats and radishes last week. That was our first attempt at a cover crop, getting an idea of how that system works and whether we will see benefits from it.

Doug Uphoff, Shelbyville, Shelby County: First time I’ve heard thunder in I don’t know how long. Hopefully this will help fill pods on beans. We haven’t started harvest yet, but some have. I’ve heard of moisture levels from 21 to 32 percent. Haven’t heard any yields. The troubles I have heard are the green spots where moisture levels are quite a bit higher. Wanted to mow hay after rain. Pretty short, but good quality.

Maybe this rain will help in growing more before we cut it. Sept. corn, $4.50; fall corn, $4.39; Jan. corn, $4.54. Spot beans by Sept.

25, $13.61; last part of Sept., $13.33; fall beans, $13.18; January, $13.39.

Jeff Guilander, Jerseyville, Jersey County: Fall has arrived.

Crickets are chirping, leaves are falling, soybeans are turning and corn still thinks it’s August. Even with the cooler, damper weather, corn has continued to dry some giving us hope we won’t have to dry all of it. The best parts of the fields are better than expected and the worst are zero, so the average will depend how much zero we will have to factor in. Those early, heavy rains left their mark with ponding and ditches. Soybeans are getting closer, but still look to be a couple of weeks out before any large scale progress.

Dave Hankammer, Millstadt, St. Clair County: Rain showers moved through the area during the latter part of the week leaving a total of 0.5 of an inch precipitation.

Corn harvest is still at a slow pace with the earliest-planted fields being harvested. Most farmers are targeting the last week of September to start. Grain moisture has been ranging in the mid- to upper-20 percent range.

Soybean fields continue to change color with a few fields displaying a yellowish-brown color, indicating these fields may be ready for harvest in about a week to 10 days. The recent rain showers will help the late-planted soybeans fill out seed pods. Pumpkins and mums are now in many of the farmers markets and stores, confirming that the fall season is upon us. Local grain bids are corn, $4.38; soybeans, $13.33; wheat, $6.13. Have a safe week.

Ken Taake, Ullin, Pulaski County: It has been another dry week here in deep southern Illinois.

The dry weather is really starting to show on the soybeans. We haven’t cut any soybeans yet. There have been a few early beans cut, but I have not heard any yields. Corn harvest is inching along. Moistures are high enough that most people are easing into it slowly. We’ve harvested about 100 acres of corn. Our yields are about average. Certainly great compared to last year, but again, no record highs. Please take your time and be careful as we enter into this busy season.

Page 7 Monday, September 23, 2013 FarmWeek

CROPWATCHERS Rick Corners, Centralia, Jefferson County: By golly, I was lucky on Wednesday. I got 0.7 of an inch of rain. Seems like that was the high for the whole area. It will sure help the double-crop beans, but most of the others are already getting ripe. Heard of a little corn being shelled around. I’ve heard moisture is 25+. I haven’t heard any yields yet.

Dan Meinhart, Montrose, Jasper County: We had a rather mild, mostly dry week. A few light showers moved through the area leaving little or no precipitation.

Crops are maturing rapidly. Very few fields are close to harvest. The beans are turning or still green. The corn is still running too high in moisture to harvest.

Randy Anderson, Galatia, Saline County: No measurable rain here on the farm. A little more harvest activity is picking up in some early beans and May-planted corn. Yields have been better than expected. We will need good yields with the price that the CBOT is giving us to work with.

Just remember one thing on the farm this week — safety: it’s no accident!

David Schaal, St. Peter, Fayette County: A few showers around Friday morning. We received about 0.3 of an inch of rain earlier in the week. Still not much harvest going on in this neck of the woods. Some of the soybeans have made a big change as far as ripening in the last week.

With the weather we have had, the corn is also progressing rapidly. Farmers are getting ready to go for the approaching harvest. Have a good week and stay safe.

Dean Shields, Murphysboro, Jackson County: The weather was fairly dry and a little bit cooler, but no rain. The soybeans sure could use a shower. There are a lot more people picking corn now. I’m hearing that some of the yields are pretty good. I do know one person who was harvesting some soybeans. More people will be picking corn next week and maybe more beans.

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

Consumers likely will encounter tighter beef supplies and higher prices in the months ahead.

USDA for the second straight month significantly reduced the number of cattle placements in feedlots in its latest cattle on feed report released Friday.

Placements in feedlots during August totaled 1.79 million head, down 11 percent from the same time last year. USDA last month repor ted July placements were d ow n 1 0 p e r c e n t f r o m a y e a r ago.

“This is another pretty bullish report,” Derrell Peel, ag economist at Oklahoma State University, told Fa r m We e k . “ I t ’s t h e s e c o n d (report) in a row in which the placement number was at the low end of trade expectations.”

Placements in August are the lowest since USDA started tracking the data in 1996.

Overall, the number of cattle and calves on feed as of Sept. 1 totaled just 9.88 million head, 7 percent below a year ago.

“This September 1 cattle on feed inventor y is the smallest (for that time of year) since 2003,” Peel said.

“We’re seeing the downward feedlot inventory

we’ve been anticipating for several months.”

Marketings of fed cattle in August totaled 1.88 million head, down 4 percent from last year. Marketings for August were the second-lowest since 1996. “ We ’r e s e e i n g a m o r e a c u t e issue of a lack of cattle in feedlots,” Peel said. “I would expect (cattle and beef) prices to be higher.”

December cattle futures on Friday climbed to $129.80 per hundredweight.

But Peel doesn’t expect major fireworks in the market to occur until later this year and into 2014.

He believes there is an ample supply of cattle for another four to six weeks.

“The real strength (in the cash cattle market) should occur about one month to six weeks from now,” he said.

After that, demand will determine just how high cattle and beef prices climb.

“Demand is key as we move forward,” Peel added. “At the end of the day we have to sell the whole carcass. The market will figure out who wants beef the most.” — Daniel Grant

Cattle supply tightens; higher prices expected

Har vest expected to pick up after slow start

BY DANIEL GRANT FarmWeek

Harvest is expected to shift into high gear in the next week or two across much of the state after a slow start.

Corn harvest as of the first of last week was just 1 percent complete statewide compared to 34 percent last year and the five-year average of 14 percent.

Nationwide, just 4 percent of the corn crop was in the bin compared to 24 percent last year and the five-year average of 10 percent.

“We’re still a couple of weeks away for corn (harvest),” Philip Nelson, Illinois Farm Bureau President and a farmer from LaSalle County, told the RFD Radio Network® last week. “A lot of bean fields are still green and probably a month out (from harvest).

“There’s a little bit of silage being chopped for cattle feeding,” he noted.

Aaron Vercler, a farmer from Washington and a Tazewell County Farm Bureau member, started chopping corn silage last Tuesday.

He was pleased with the initial results. The silage will be used to feed his herd of 40 Holstein cows.

“Yields are good and the quality is good,” Vercler said of the silage.

“We’ll start combining (this) week,” he continued. “I think we’re going to have really good corn but the beans are iffy.”

Kirk Liefer, a farmer from Red Bud and a Randolph County Farm Bureau member, started corn harvest the middle of this month and reported good yields on his farm so far.

“Corn yields so far are probably 10 to 15 percent above average,” Liefer told FarmWeek. “And compared to last year, (corn yields) are about 110 to 120 bushels (per acre) better.”

Liefer on Friday said harvest activity in his area still was rather light.

“Moisture is a little high yet,” he noted.

Corn harvested on Liefer’s farm last week tested in the low- to-mid-20s for moisture.

Some scattered rains late last week also slowed field activity. But the spotty rains weren’t expected to help many of the crops except for possibly some late-planted and double-crop beans.

The moisture, while providing a brief relief at some locations, also wasn’t enough to break the drought.

Nearly 32 percent of the northern two-thirds of Illinois was in moderate to severe drought last week while abnormal dryness spread in southern Illinois.

The Climate Prediction Center noted the drought will persist in Illinois through the end of the year.

Specialty grain marketer: Sometimes it pays to be different The rapid adoption of biotech crops in the U.S. improved many farmers’ ability to manage pest and weather issues in the quest for greater yields.

U.S. farmers this year planted about 93 percent of soybean acres and 85 percent of corn acres with herbicide-tolerant varieties, according to USDA. But the trend of more biotech crops, introduced in the mid-1990s, has been a challenge for some end users seeking product differentiation, such as waxy corn or nonbiotech varieties.

That’s where grain marketers, such as Jim Stitzlein, see an opportunity for some farmers to carve out and possibly expand niche markets.

Stitzlein, market development manager for Consolidated Grain and Barge (CGB), discussed the pros and cons of identity-preserved (IP) crop production last week at the U.S. Soy Global Trade

Exchange in Davenport, Iowa.

“We’ve found extra value with IP contracts,” Stitzlein said.

CGB has been exporting IP crops for 20-plus years. The volume of IP grain shipped by CBG the past decade averaged about nearly 50 million bushels of corn and soybeans per year.

“IP allows differentiation and traceability, which allows end users to create more consistent products and eliminate waste,” Stitzlein said.

And growers can earn quality premiums for their crops to help improve their bottom lines.

But a successful IP contract requires a lot more coordination between buyers and sellers, Stitzlein noted.

Farmers who grow IP crops often lose economies of scale, flexibility and take on greater risk. And buyers must signal their needs sometimes years in

advance, and be willing to pay premiums for specific crops.

“It may require advance contracts,” Stitzlein said. “There are incremental costs and challenges to manage.”

Looking ahead, Stitzlein said there may be more opportunities for the production of nonbiotech corn and beans in the future. There have been state proposals in California, which was defeated, and on the East Coast, to label food that contains biotech crops.

“We believe (biotech crops) are safe,” Stitzlein said. “But nonGM demands offer a market opportunity.”

John Kelley, rep-

resentative of the European Feed Manufacturer’s Federation noted the EU is a mature market for corn and beans, but “there are lots of opportunities for product differentiation.”

He also noted the EU only produces about one-third of the protein it uses, so it will remain heavily dependent on imported beans. — Daniel Grant

POLICY

FarmWeek Page 8 Monday, September 23, 2013

IFB testifies against Rock Island energy transmission line

BY CHRIS ANDERSON FarmWeek

Questioning the need for a 500-mile energy transmission line, Illinois Farm Bureau President Philip Nelson received a standing ovation last week for testimony opposing the Rock Island Clean Line (RICL) Transmission Project.

About 150 people asked to testify at the Illinois Commerce Commission (ICC) hearing in Mendota. Only half of them spoke before the standing-room-only hearing was closed after three hours of testimony.

Clean Line Energy of Texas applied to the ICC for public utility status in October 2012.

The company wants to construct a high-voltage direct current transmission line delivering 3,500 megawatts from northwest Iowa to Illinois and other eastern states.

“RICL has not demonstrated that there’s a need to build this project,” said Nelson. “The cart is before the horse, and we’re especially concerned with the fact that need for this project was not vetted before either Regional

Transmission Planning Authority.

“Because this project has been proposed as a merchant line, we understand that it doesn’t have to go through a ‘needs study’ like Philip Nelson most projects which seek cost allocation.

But the ICC has to look at the big picture. Several high voltage transmission line projects have been proposed to cross the State of Illinois,” he noted.

Nelson cited several reasons IFB opposes RICL: • Clean Line Energy is a private company, not a public utility. The company lacks a track record for building any transmission lines and owns no utility assets.

• The proposed route carves prime farmland because it does not follow existing right-of-way corridors.

• RICL has not firmly committed to using monopole structures for the entire route instead of lattice structures

that would take more land out of production.

Wayne Anderson of Geneseo, IFB board director, also testified in opposition of the project. The Henry County farmer noted Illinois wind Wayne Anderson farms would not be allowed to add electricity to the grid, eliminating revenue for landowners and tax revenue for the state.

“This proposal’s footprint would carve up prime farmland, and would not follow established, existing right of ways, property boundaries or section lines with no regard to existing irrigation pivots in the area,” Anderson testified.

“Knowing there are eight other transmission line projects being proposed, my request is that the ICC takes a comprehensive look at all these requests,” Anderson added. “These are electrical highways that provide no savings, no help to our grid

and could cost Illinois consumers.”

Evidentiary hearings are scheduled before the ICC for Springfield in December. ICC

officials are expected to make a decision on whether to grant RICL public utility status and authority to construct the project next year.

Court upholds federal authority in Chesapeake

Implications for Mississippi Basin regs?

BY MARTIN ROSS FarmWeek

A federal court ruling upholding the U.S. Environmental Protection Agency’s (EPA) total maximum daily load (TMDL) nutrient prescription for the Chesapeake Bay is “incorrect and has huge implications for farmers and many others in the Bay area and nationwide.”

So says American Farm Bureau Federation (AFBF) President Bob Stallman, responding to a Pennsylvania district court decision effectively rejecting AFBF’s challenge to EPA’s authority to set nutrient/water quality standards for ag and other economic interests in the Northeast bay region.

Illinois Farm Bureau Vice President Rich Guebert Jr. deemed the ruling “really disappointing.”

Though he stressed the need for further review of the ruling, Guebert said it raises concerns about the possibility of Chesapeake-style regulations coming to watersheds such as the Kaskaskia River region near his Randolph County operation.

Congress did not authorize EPA under the federal Clean Water Act “to dictate how Rich Guebert Jr. farmers, builders, homeowners and towns would share the responsibility of achieving clean water,” Stallman said. “That is the states’ job,” he held, arguing EPA’s approach in the Chesapeake area “wrongly puts federal agency staff in charge of intensely local land use decisions.”

IFB Natural and Environmental Resources Director Lauren Lurkins agreed the ruling could “turn up the heat” on ag and other economic activities within the Upper Mississippi River Basin. EPA already is pressur‘This ruling puts ing state agencies including the even more presIllinois Environmental Protection Agency (IEPA) to take sure on states more stringent steps within key including Illinois.’ watersheds, Lurkins said.

AFBF policy favors adoption of best management prac— Lauren Lurkins tices or accepted ag practices IFB Natural and Environment as an alternative to rigidly preResources Director scriptive “numeric” nutrient standards.

“This ruling puts even more pressure on states including Illinois to get nutrient reduction plans in place and, probably, even more pressure for different states to develop numeric nutrient criteria,” she advised.

“The court appears to be saying that EPA could take control over the TMDL process, which wouldn’t necessarily even involve numeric criteria. EPA theoretically could step into the place of a state and make some regional and local water quality decisions.”

The courts have helped resolve but not conclusively answered a number of questions regarding EPA’s authority over individual states.

In February 2012, a district court upheld EPA’s overall ability to issue water standards in Florida as well as some specific standards, but agreed with AFBF that key EPA restrictions lacked science-based criteria and thus were unlawful.

The ruling was seen as establishing that EPA must use scientifically valid methods compatible with state laws when imposing numeric criteria on other states in the future.

According to the court, EPA could not show criteria prohibiting any elevation of nutrient levels in so-called “pristine” Florida streams were needed to prevent harm to the environment, as required by Florida law.

SPECIALTY CROPS

Page 9 Monday, September 23, 2013 FarmWeek

Growing season throws curve at Illinois’ 2013 grape crop

BY KAY SHIPMAN FarmWeek

Grape harvest ran into weather delays in northern, central and southern Illinois vineyards, although different growing zones result in different starting and ending dates statewide.

Paul Hahn, owner of Mackinaw Valley Winery near Mackinaw in Tazewell County, finished harvest two weeks ago and estimated his production was half of a normal crop. Normally, Mackinaw Valley produces 5,000 gallons of wine, but Hahn speculated this year’s crop would produce 2,250 gallons.

Pollination was hampered by a wet, cool May and June, Hahn noted. Then came a heat wave and drought.

“The heat and drought makes grapes smaller and sweeter, and it makes the wine have more intense flavors,” Hahn said.

Not only was Hahn’s grape

1

crop delayed, but his corn and soybeans also haven’t matured.

He hadn’t started combining yet.

In northern Illinois, grape harvest may start in another week, but those grapes typically mature three weeks later compared to those in central and southern Illinois, according to Jeff Pankow, owner/operator of Blue Star Vineyard near Woodstock in McHenry County.

Pankow reported his crop also was delayed by a cool, wet spring, but pollination was not impacted. “We had more disease pressure this year,” he added.

Blue Star may begin harvesting white grapes in a week, but probably won’t start picking the later red varieties until October. Pankow didn’t anticipate reduced production.

“In our area, everything is looking fine,” Pankow said.

In deep southern Illinois, the grape crop also was two weeks later than usual, said

scan

Above: A Mackinaw Valley Vineyard employee picks Corot Noir grapes. Grape harvest finished two weeks ago and production was down due to a cool, wet May and June. Below: Paul Hahn, owner of Mackinaw Valley Vineyard, checks his LaCross grapes that fill a half-ton picking bin at his Tazewell County winery. Hahn cools the grapes in the bin until they are ready for crushing and pressing. (Photos by Kay Shipman)

Anders Hedman, owner and vintner of Hedman Vineyards near Alto Pass in Union County.

Hedman had started, but not finished harvesting his grapes.

“The harvest (production) is less than normal because of the wet, cool spring,” Hedman said.

While the earlier varieties produced fewer grapes, the late-season varieties look more promising and may yield a normal crop, according to Hedman. He estimated his production may be down 30 percent this year.

2

click

3

download

All Ag. All Illinois. All Now.

FarmWeekNow.com Mobile App

IFB IN ACTION

FarmWeek Page 10 Monday, September 23, 2013

Left: Illinois Farm Bureau President Philip Nelson encourages drivers to wait before texting during a press conference to announce the IFB and Affiliates Youth Education Program and Illinois FFA Association participation in AT&T’s It Can Wait campaign.

Right: Illinois FFA Treasurer Joe Heavner checks out the AT&T It Can Wait website.

(Photos by Cyndi Cook)

IFB, affiliates support ‘It Can Wait’ campaign to stop texting and driving

BY KAY SHIPMAN FarmWeek

Illinois Farm Bureau President Philip Nelson knows firsthand the problem of drivers who text. He was hit by a distracted driver last year.

“I see it day after day,” Nelson said during a Bloomington press conference to kick off pledges to not text while driving.

The IFB and Affiliates Youth Educa-

tion program and the Illinois FFA Asso- AT&T looks forward to working with the state’s 17,000 FFA members to raise ciation joined AT&T in its It Can Wait awareness and increase pledges, especampaign and promoted a Sept. 19 cially among young drivpledge drive. Immediately ers, said John Quinn, following the press conFarmWeekNow.com AT&T Illinois external ference, several FFA sec- Learn more about the “It Can Wait” affairs manager. tion and chapter officers campaign at FarmWeekNow.com.

Illinois FFA signed pledges online.

Reporter August Schetter During the last three shared his personal connection to texyears, 2.5 million drivers nationwide ting tragedies.

Three years ago, one of have pledged not to text while driving.

Schetter’s friends died after he texted while driving. The FFA is considering ideas to promote the campaign among members and chapters across the state, according to Schetter.

“We ask all our teen drivers to do one thing — simply drive,” added Kurt Bock, COUNTRY Financial chief executive officer.

For more information or to take the pledge, go online to {itcanwait.com}.

IFB seeks Strength With Advisory Teams applicants

Illinois Farm Bureau is seeking applicants for three issue advisory teams. Members of the Strength With Advisory Teams (SWAT) will surface emerging issues in agriculture, provide a vision for IFB and the agriculture industry and help guide the issues.

“There’s certainly no shortage of issues facing us at the local, state and national levels.

We’ll be counting on SWAT

volunteers to dig in, shine the light on those issues and help prepare our association and agriculture to meet those challenges head on,” said Adam Nielsen, IFB director of national legislation and policy development.

The application deadline is Nov. 1.

Teams will identify emerging issues and provide input to the IFB Board of Directors on issues relating to farmers, production practices, rural life and other agricultural-related areas.

The three teams will guide and direct IFB as the members become experts on specific issues, regulations and legislation on which they are focused.

A Conservation and Natural

Resources team will work on issues related to environmental regulations, conservation programs, forestry, concentrated animal feeding operations, permitting, pesticide use and related topics.

A Farming Production and Marketing team will focus on issues related to crop production, marketing, risk management, trade, technology, farm policy, livestock, equine, local foods, specialty crops and related sectors.

A Local and State Government team will address rural development, local government, local economies, government finance, elections, education, energy, transportation and related issues.

Each team will consist of 12 Farm Bureau members, an IFB board member and a county Farm Bureau manager, the latter of whom will serve the team in an advisory capacity.

Team members will be appointed to two-year terms.

The teams will meet four times each year for one-day meetings with the first meeting set for Jan. 30, 2014.

Applicants who aren’t selected for a team may participate in an advisory capacity as indicated by selecting specific issues on the application form.

For information, contact your county Farm Bureau, call IFB at 309-557-3929, or go online to {www.ilfb.org/swat}.

PRODUCTION

Page 11 Monday, September 23, 2013 FarmWeek

Oct. 1 deadline for farm health exchange notices The federal Affordable Care Act (ACA) requires most farm employers to inform employees about their ability to purchase health insurance coverage through state or federally administered insurance exchanges.

By Oct. 1, most farm employers must provide each employee with an “exchange notice.” That may sound onerous, but American Farm Bureau Federation (AFBF) specialist Pat Wolff notes availability of a “short form” that legally cuts through most of the potential bureaucracy.

“We’re generally talking about checking a couple of boxes and giving copies to your workers,” Wolff told FarmWeek. “It’s easy to do.

“The Department of Labor has sample forms that include more information than is actually required. What you’re required to say is on that short form.”

The following Q-and-A offers guidance to farm employers on how to comply with exchange notice requirements.

What is an exchange notice?

A written notice informing employees of their ability to purchase health insurance coverage through a state or federally administered exchange.

The notice explains some of the benefits and consequences to your employees if they choose to purchase health coverage through an exchange, especially if they elect not to participate in a health insurance plan offered by their employer.

Who is required to provide the exchange notice?

Any farm employer subject to FarmWeekNow.com the Fair Labor Standards Act Find the Exchange Notice (FLSA) must provide an exchange shor t form at FarmWeek- notice to employees. They must Now.com provide a notice even if they do not offer an employer-sponsored health plan to your employees.

U.S. Department of Labor (DOL) guidance relating to FLSA applicability can be found at {www.dol.gov/elaws/esa/flsa/scope/screen24.asp}.

Employers are urged to confirm status with an attorney or consultant before determining that they are not subject to the FLSA and thus not required to provide employee notice.

To whom must the notice be provided?

• The exchange notice must be provided to all current and new full-time and part-time employees, including H2A-visa guest workers and seasonal employees.

• If workers are hired through a farm labor contractor, a notice is recommended. The contractor may be deemed the “employer” for ACA purposes, but employers who provide employees with an exchange notice ensure ACA compliance.

• An employer does not need to provide notices to former employees, retirees or independent contractors.

When must the notice be provided?

The exchange notice must be provided to all current employees no later than Oct. 1. Notice must be provided to each new employee hired on or after Oct. 1 within 14 days of employment.

What information must be provided in the exchange notice?

At a minimum, the notice must inform employees of: • The name and contact of available health exchanges.

Employers can learn about the exchange in their state by visiting {www.healthcare.gov/what-is-the-health-insurance-marketplace}. A drop-down menu at the bottom of the site allows employers to identify their state and locate the entity providing health coverage on the exchange.

• Services offered through exchanges. Providing employees with the exchange web address is considered sufficient to meet requirements regarding notification of services available through the exchange.

• Employee eligibility for premium tax credits or cost sharing reductions if they chose to purchase health coverage on the exchange.

• Employees who elect to purchase coverage on an exchange rather than an employer-sponsored plan forfeit the employer contribution to their coverage premium. Employees who elect for exchange coverage may also lose the related tax benefit associated with the employer contribution, since it may have been excludable from employee income for federal income/payroll tax purposes.

Is there a model exchange notice I can use?

Beyond the AFBF-drafted short form, three model forms are available on the Department of Labor website {www.dol.gov}. A one-page basic form provides the minimum information all employers must communicate to employees.

If an employer offers health coverage to employees, they may use a second form seeking added information on exchanges, located at {www.dol.gov/ebsa/pdf/FLSAwithplans.pdf}. If the employer does not offer coverage, he or she may use a form available at {www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf}.

How must the exchange notice be presented or delivered?

Employers must provide either a written or electronic notice — ideally a written notice via first-class mail or delivered in person. Employers should ask employees to sign a document acknowledging receipt of the notice.

CDC: Human use key factor in antibiotic resistance spread

but they’re not the top threat.

“Every time antibiotics are used in any setA report released last week by the Centers ting, bacteria evolve by developing resistance,” for Disease Control and Prevention (CDC) con- said Steve Solomon, director of CDC’s Office cluded the overuse of antibiotics at hospitals, of Antimicrobial Resistance. “The more we use not livestock barns, is the key culprit for the antibiotics today, the less likely we are to have spread of antimicrobial resistance. effective antibiotics tomorrow.”

Every year more than 2 million people in the Jack Herrmann, veterinarian and clinical U.S. get infections that are resistant to antibiassociate professor at the University of Illinois otics and at least 23,000 people die as a result, College of Veterinary Medicine, praised CDC’s according to the CDC report scientific approach to the report.

“Antibiotic Resistance Threats in “CDC did a good, balanced FarmWeekNow.com the United States, 2013.” job taking the ideology out of V i e w t h e C D C ’s l a t e s t Some activist groups in recent it,” Herrmann told FarmWeek. study on antibiotic use at years blamed animal agriculture “We need to let scientific eviFarmWeekNow.com. for causing most of the issues dence drive the discussion and related to antimicrobial resistance policy making.” in humans. But the CDC report found otherwise.

The report, however, doesn’t minimize the “Right now, the most acute problem is in need to decrease the use of antibiotics on farms hospitals,” Tom Frieden, CDC director, said dur- as well as hospitals, Herrmann noted. ing a teleconference. “The most resistant organ“I think everybody agrees we need to try to isms in hospitals are emerging because of poor reduce antibiotics use across all species,” he said. anti-microbial stewardship among humans.”

Jim Fraley, Illinois Farm Bureau livestock program Infections classified as urgent threats include manager, said most antibiotics given to livestock drug-resistant gonorrhea and Clostridium diffi- are to help the transition from nursing to weaning. cile, a serious diarrheal infection associated with “The stress of (weaning) can be an open antibiotic use. door to disease,” Fraley said. “As animals get The CDC report found that up to 50 percent older, the use of antibiotics vastly diminishes.” of all antibiotics prescribed for people are not There also are withdrawal times and safeneeded or are not prescribed appropriately. guards in place, including tissue sampling, to The report also found antibiotics used on ensure no antibiotic residue reaches consumer farms contribute to the problem of resistance, shelves, Fraley added.

BY DANIEL GRANT FarmWeek

COUNTY FB SPOTLIGHT

FarmWeek Page 12 Monday, September 23, 2013

Kane County hits million-meal goal

Being around for 100 years is reason enough to celebrate, but Kane County Farm Bureau (KCFB) members celebrated another major milestone last week. Their hunger relief efforts surpassed the equivalent of 1 million meals provided to local food pantries and the Northern Illinois Food Bank (NIFB).

“Your attendance tonight helped put us over the top,” Kane County Farm Bureau President Joe White of Elburn told about 200 guests who gathered to celebrate the Farm Bureau’s centennial. Ticket sale proceeds from the event — more than $5,000 — were donated to the food bank, putting the total at 1,016,908 meals.

“Three months remain in our centennial hunger relief efforts, so let’s hope we can boost that number even higher,” White said.

“It’s all about collaboration,” said NIFB Director of Food Bank Procurement Steve Ericson. “We’re both grassroots organizations helping people and trying to do more with less.”

Keynote speaker Charlie Arnot shared statistics about how farmers are producing more food on less land to feed a world population expected to reach 9.5 billion people by the middle of this century. Arnot is chief executive officer of the Center for Food Integrity, a national nonprofit organization dedicated to building consumer trust and confidence in the U.S. food system.

White said that in addition to being a wonderful space, the food bank was the perfect venue in which to celebrate the anniversary because of the partnership the two organizations have developed to provide hunger relief.

“As farmers, we’re in the business of producing food and this is all about helping people who don’t have enough to eat,” said White. “We wanted to reach our goal during our centennial year, and being able to accomplish it

BY RYAN KLASSY

Kane County Farm Bureau President Joe White, right, presented a check to Northern Illinois Food Bank’s Nichole Okapal and Steve Ericson to help them in their quest to stamp out hunger in Kane County and northern Illinois communities. (Photo by Ryan Klassy)

through the attendance of our members and guests at our celebration is really special.”

During the last four years the food bank has been the lead recipient of funds donated through the Farm Bureau’s Harvest for ALL program, nationally recognized for its accomplish-

ments in helping to feed the hungry. Its board of directors set the ambitious goal in December 2012 after seeing that cumulative hunger relief through food drives, an annual shopping spree, and corporate and member donations had provided more than 700,000 meals.

Calculations are based on the food bank’s ability to turn each dollar into six meals for someone in need.

IFB President Philip Nelson commented on the rich history of Kane County Farm Bureau, and the work ethic shown through county Farm Bureausponsored projects.

Three former IFB presidents attended the event, including Kane County’s own John White Jr. of Elburn, Alan Dale of Walnut (Bureau County) and Ron Warfield of Gibson City (Ford County). Seven KCFB past presidents also attended the centennial celebration — Jack Young, John White Jr., Eldon Gould, Gerard Fabrizius, Dan Heinrich, Mike Kenyon and Bob Gehrke.

During dinner, guests viewed a 19-minute video documentary on the county Farm Bureau, organized in December 1912 as the Kane County Farm Improvement Association. The video is now available through the organization’s website {kanecfb.com}. A limited number of KCFB centennial history booklets are also available to members at the Farm Bureau office in St. Charles.

Ryan Klassy is Kane County Farm Bureau information director.

Tree farm field day set in Crawford County

Herman, Herman and Sons Tree Farm will host a field day Oct. 5 in Palestine, Crawford County. Registration starts at 8:30 a.m. followed by tours from 10 a.m. to 3 p.m. Lunch will be served from noon to 1 p.m. Reservations are requested to ensure enough food is prepared.

The cost is $5 per person and includes a meal, beverages and materials.

The farm is located south of Palestine about three-fourths of a mile off Illinois 33. For more information or to make a reservation, contact the Crawford County Soil and Water Conservation District at 618-544-7517, extension 3.

FROM THE COUNTIES

Page 13 Monday, September 23, 2013 FarmWeek

C

HRISTIAN — Farm Bureau will co-sponsor an informational meeting for landowners affected by the Ameren Transmission Line at 6 p.m. Tuesday at the Moweaqua Lions Club. Laura Harmon, Illinois Farm Bureau Office of the General Counsel, will be the speaker. Call the Farm Bureau office at 8242940 for more information.

LAY — Farm Bureau will sponsor a bus trip to the Covered Bridge Festival in Parke County, Ind., leaving at 5:30 a.m. Oct. 17 from the Farm Bureau office. Cost is $25 for members and $30 for nonmembers. Call the Farm Bureau office at 665-3300 or email ccfbmanager@gmail.com for reservations by Oct. 11.

AWRENCE — Farm Bureau will sponsor a bus trip to the Covered Bridge Festival in Mansfield, Ind., from 6:30 a.m. to 6 p.m. Oct. 16. The bus will leave from the Lawrenceville Christian Church parking lot. Cost is $20 for members and $30 for nonmembers. Call the Farm Bureau office at 943-2610 to register or for more information. acon — Farm Bureau will co-sponsor an informational meeting

C L

M

for landowners affected by the Ameren Transmission Line at 6 p.m. Tuesday at the Moweaqua Lions Club. Laura Harmon, Illinois Farm Bureau Office of the General Counsel, will be the speaker. Call the Farm Bureau office at 8772436 for more information.

EORIA — Farm Bureau will sponsor a large animal rescue training on Sept. 29 at the Heart of Illinois Arena for area fire and rescue volunteers. Call the Farm Bureau office at 686-7070 for reservations.

HELBY — Farm Bureau will co-sponsor an informational meeting for landowners affected by the Ameren Transmission Line at 6 p.m. Tuesday at the Moweaqua Lions Club. Laura Harmon, Illinois Farm Bureau Office of the General Counsel, will be the speaker. Call the Farm Bureau office at 7742151 for more information.

ABASH — Farm Bureau will co-sponsor with the Health Department a health clinic beginning at 9 a.m. Monday at the Farm Bureau office. Flu shots, blood pressure checks, weight and BMI checks will be offered. A copy of insurance and a driver’s license will be required for flu shots.

P S

W

Closed air base site for crops, farmers

BY KAY SHIPMAN FarmWeek

Land and buildings used for aircraft and airmen may nurture specialty crops and farmers in Champaign County.

The village of Rantoul is exploring several agriculture uses for the land and structures that comprise the closed Chanute Air Force Base, said Brad Uken, Champaign County Farm Bureau manager.

Uken described the project during a recent American Farm Bureau Federation Rural Development Conference in Bloomington. He represents the county Farm Bureau in the potential initiative.

The village is considering potential uses for both the buildings and land it owns.

One potential use may be specialty crop research and testing. “This would be a unique research facility,” Uken said. The site offers both land and large hangars that might be used for indoor production, he pointed out.

Education of new and beginning growers also is being explored. The village started an incubator farm with the local FFA chapter. The students are

BUSHELS FOR HUNGER KICKOFF

growing sweet corn and watermelon on two acres and learning from their project.

Production land could be divided into varied sizes from small plots up to 40-acre parcels. Water and electricity would be available for nearly every parcel, Uken said.

“Incubator farmers can graduate and be connected to (larger) parcels. Existing farmers may not need incubator (training) or a lot of land,” Uken said.

The village is exploring a possible processing plant for one of the buildings. “We’ve looked at forming a farmer cooperative. That’s what our vision is” for the processing plant, Uken said.

Asked about local farmers’ views on the project, Uken said they are supportive and consider it an opportunity for the next generation of farmers. Some new farmers may include sons and daughters who are unable to return to their family farms and instead diversify the farming operation, he said.

“The demand (for local food) is there, but the supply is not,” Uken said.

Mike Secymore, Gold Star FS grain merchandiser, left, helps Mercer County Farm Bureau President Jeff Kirwan, Cargill’s Deanna Zwicker and Mercer County Farm Bureau Board member Mike Brokaw kick off the 2013 Bushels for Hunger food drive. The quartet stocked food at River Bend Food Bank in Moline. Twelve grain elevators in Henry, Rock Island, Mercer, Whiteside and Stark counties support the effort coordinated by the county Farm Bureaus. In the last two years, the program provided more than $75,000 to the River Bend Food Bank. (Photo by DeAnne Bloomberg)

Looking for a Convenient Supply of DEF?

When it comes to the success of your operation, you can rely on your local FS energy specialists. If your new equipment uses diesel exhaust fluid (DEF), your local FS Co-op and participating FAST STOP® locations have just what you need – convenient supply. From packaged or bulk DEF to even the dispensing equipment, FS has the products and the knowledgeable experts to help you go further.

FS – The people and the products to take you further. Go further with FS.

TM

Go further. ©2012 GROWMARK, Inc. A13242

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

PROFITABILITY

FarmWeek Page 14 Monday, September 23, 2013

Getting ready for corn, soybean harvest this fall

It has only been a few weeks since my last submission for FarmWeek, but circumstances are dramatically different today. Any discussions about the delays in crop development have gone by the wayside and now the lack of rain in Sid Parks August and near record heat for September dominate discussions.

Continued dry conditions for many have led to talk of another drought cycle, while

BY SID PARKS

plots, seed plots or simply desiring to accurately record the yield.

Wireless data transfer is possible today, but will be available for more in the near future. For now, most will still need the original files on a USB stick or other storage media.

If you have questions, contact your FS crop specialist for help with these or other crop production related questions for your farm.

the National Weather Service has been calling for above average rainfall this fall. Anybody have a coin?

Early planted corn now being harvested has generally been good, but later planted acres, for many, lacked rainfall to help grain fill. Moisture stress will contribute to deteriorating stalk quality, so keep tabs on your field conditions and schedule harvest accordingly.

Cooler temperatures in August also led to poor soybean pod set, so in my opinion, soybean yields will be lower than normal.

What should you be doing

now as you prepare for harvest? I’ll leave the obvious equipment discussion for those experts, but would offer the following as it relates to information management.

Most acres today are harvested with combines equipped with a yield monitor and GPS equipment. Make sure your equipment is ready to go, checking connections, cleaning sensors and starting with a clean data storage device.

If you are processing your own data, this next comment doesn’t apply to you. However, if you work with FS or any other service provider to uti-

lize yield data in fertilizer recommendations or for data analysis, please remember to always provide the raw data from your yield monitor or controller to the technician.

The reason? Software programs process, cleanse or modify data in different ways.

Without knowing everything else involved, it is best to start from the raw data and not assume what may or may not have been done to the data files after leaving the combine.

Data integrity like this is also important for anyone who might be conducting field trials or other on-farm discovery

Sid Parks is GROWMARK’s agronomy information technologies manager. His email address is sparks@growmark.com.

estimates for beans by 106 million and 70 million bushels, respectively.

“I think we can expect a decline of about one million acres of harvested corn,” Dixon said last week at the U.S. Soy Global Trade Exchange hosted by the Midwest Shippers Association Parry Dixon and U.S. Soybean Export Council in the Quad Cities.

But with relatively good yields, “I think we’re looking at

a 13.7 billion to 13.9 billion bushel crop,” Dixon continued. “With those kind of numbers, then you have to look at the demand side.”

The Farm Service Agency last week updated crop acres and reported prevented plantings at 3.57 million acres for corn and 1.69 million acres for beans. If realized, crop acres still would be large at 91.43 million acres of corn and 74.66 million acres of beans.

Dixon believes it will be difficult to rebuild corn demand short-term as the U.S. cattle herd is at a historic low, swine expansion is expected

to be slowed by the spread of porcine epidemic diarrhea virus and ethanol production is near its peak under the current Renewable Fuels Standard.

“Barring widespread early frost damage this year, the (corn) yield forecast in October is not expected Darrel Good to differ enough from the September forecast to alter the prospects for rebuilding stocks during the year ahead,” said Darrel

Good, University of Illinois ag economist who expects corn prices to average in the mid-$4 range.

Soybean supplies, on the other hand, are expected to remain tight near-term and keep pressure on prices due to diminishing yield prospects. Good predicted bean prices will peak in the fall and decline as the South American crop advances, with an average in the high-$12 range.

“The market is telling us to plant more beans,” Dixon added. “I think we’ll see a significant increase in soybean plantings in Brazil.”

Market focus could shift to corn demand, South American soy production

BY DANIEL GRANT FarmWeek

After dealing with tight supplies for much of the past year, crop markets could head in different directions this fall.

A record-large corn crop in the U.S. likely will place more emphasis on demand in coming months, according to Parry Dixon, director of economic research at Archer Daniels Midland.

Meanwhile, a smaller-thanexpected soybean crop in the U.S. will place South American soybean production under the microscope this fall and winter. USDA this month cut its production and ending stocks

M A R K E T FA C T S Feeder pig prices reported to USDA* Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $33.83-$48.00 $40.67 40 lbs. (cash) $55.00-$62.00 $59.93 Recipts

This Week 116,065 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 109,522

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $93.05 $90.53 $2.52 $68.86 $66.99 $1.86

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

This week $123.00 NA

Prev. week $123.00 $122.90

Change $0.00 NA

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) Prev. week Change This week $156.89 $155.93 $0.96

Lamb prices Slaughter Prices — Negotiated, Live, wooled and shorn 85-169 lbs. for 111.15-122 $/cwt. (wtd. ave. 117.21)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 9/12/2013 3.0 46.0 20.1 9/05/2013 2.5 31.7 10.0 Last year 10.0 29.4 28.3 Season total 4.8 419.2 28.3 Previous season total 22.6 308.6 37.6 USDA projected total 1370 1100 1225 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Market volatility could ease near term

Farmers in recent years have gotten used to wild swings in the crop markets.

But how much has volatility actually increased?

Parry Dixon, director of economic research at Archer Daniels Midland, reported volatility (difference between the low and high price points) the last five years averaged $3.05 for corn and $5.60 for beans.

Volatility the previous four years to that stretch averaged just $1.20 for corn and $3.06 for beans.

Price volatility this year jumped to an astoninshing average of $3.78 for corn and $6.09 for beans.

Farmers this year may see the swings in crop prices ease a bit as large crops in the U.S. and South America are projected to rebuild supplies.

“We could in a short period of time see less volatility,” Dixon said.

But that might not be as good as it sounds. The decrease in volatility is expected to occur in tandem with lower crop prices. — Daniel Grant

‘We could in a short period of time see less volatility.’

— Parry Dixon

Farm transfer size jumps ADM director of economic research

A recent University of Illinois study shows the average Illinois farmland transfer size during the last 32 years grew from 53.7 acres to 68.9 acres, an increase of 28.2 percent.

The notable increase in parcel size transferred may reflect expansionary pressures in the agricultural sector that are a product of trends in farm technology and the economics of farming, said Bruce Sherrick, director of the TIAA-Center for Farmland Research at the U of I. The study relied on Illinois Department of Revenue (IDOR) farmland transfer data.

Transfers of 40 to 80 acres have historically been very common in the Illinois farmland market, a pattern that is unchanged in recent years. Sales of 20 to 40 acres and sales of 80 to 160 acres are also relatively common.

In fact, in every year from 1979 to 2011, at least 75 percent of Illinois farmland transfers were between 20 and 160 acres in size. Transfers of 10 to 20 acres decreased from 20.3 percent of all Illinois farmland transfers in 1979 to 14.4 percent of all transfers in 2011, a 30.8 percent decrease in relative activity. On the other hand, sales of 160 to 320 acres were 162.6 percent more common in 2011 than in 1979.

PROFITABILITY

Page 15 Monday, September 23, 2013 FarmWeek

Corn Strategy

CASH STRATEGIST

Making sense of corn, bean acres

The release of the latest update on plantings and prevent plant acres from USDA’s Farm Service Agency (FSA) threw more fuel on the discussion about the size of the corn and soybean crops.

The September FSA update for the last two years has been within one quarter of 1 percent of the final FSA planting numbers. And the final FSA planting numbers have been 2.5 to 3.0 million acres under USDANASS (National Agriculture Statistics Service) for corn, and 1 million under for soybeans.

The extra acres of both in the NASS estimates account for crops that are planted “outside” of government programs. Those plantings do not have to be reported to FSA. Based on the September FSA

data, it would appear NASS planting numbers are 3 million too high for corn and 1.4 million too high for soybeans.

But the industry only has two years of preliminary data to work with, not much to base a comparison on, especially given the lateness of planting this year and extension of FSA reporting dates in some states.

To make matters more interesting, we’ve heard of issues inputting data because of a new system installed this year.

NASS will use this data when it revises acreage on the October report. The agency has access to historical preliminary data that those of us in the trade can’t access. Having access to preliminary data for 2008 would have been helpful this year, as it was a slow planting year unlike the last two years.

Plantings will be revised down Oct. 11, but it’s still difficult to gauge how much. But our guess is, it won’t be as much as the FSA data implies.

AgriVisor endorses crop insurance by

AgriVisor LLC 1701 N. Towanda Avenue PO Box 2500 Bloomington IL 61702-2901 309-557-3147 AgriVisor LLC is not liable for any damages which anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendations, or advice or any other act of omission.

Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, Illinois AgriVisor Hotline Number

309-557-2274

ü2013 crop: There’s still a chance prices will dip slightly, but the technical makeup still indicates this move down is about over for now. Wait for a rally to $4.70 on December futures to make needed sales.

Prepare to add to them if December pushes over $4.80, given long-term downside risk. ü2014 crop: Given the increasingly negative prognosis for the corn market, we’ve adjusted our sights a little lower, but are targeting a move to $5.15 to $5.25 on December 2014 futures to initiate sales. vFundamentals: Early yield reports have been good, but there are indications the yield from the later-planted crops may not be as good as the earlier crops. Still, overall yields are good enough to maintain the possibility the national yield will be in the mid-150s. Even with a downward revision in acreage, it’s difficult to build a supply/demand scenario with an ending stock under 1.5 billion bushels. And in the short term, demand may be soft with the export trade dominated by other countries.

Cents per bu.

Soybean Strategy

ü2013 crop: Last week’s break lower weakened the bullish argument, but still didn’t eliminate the possibility of seeing a new high. Nevertheless, you need to lower expectations. Use a rally to $13.60 to make catch-up sales. If prices move to a new high, plan to add to sales. We don’t believe it will pay to store soybeans this year, other than maybe for a short time after harvest. ü2014 crop: The higher soybean/corn price ratio will stimulate plantings in South America, and maybe in the U.S. next spring. Consider initiating sales if November 2014 futures rebound to the $12.25 to $12.50 range. vFundamentals: The potential of seeing a downward revision in yield and acreage threaten to drop the ending stock forecast to very tight levels again. But if South American planting gets off to a good start, end users could become more conservative. Export activity could quickly dry up

given the unusually large amount already on our books.

Wheat Strategy

ü2013 crop: This past week’s rally indicated the trend in wheat prices had shifted sideways. Demand has been a support as prices slipped lower, but given world supplies, we aren’t sure it will be sustained on rallies. Use a rally to $6.75 on Chicago December futures for catch-up sales.

Plan to add to sales if it gets to $6.90. If wheat is farm stored, consider a winter/spring delivery hedge-to-arrive contract. ü2014 crop: Plan to initi-

ate new crop sales if Chicago July futures reach the $6.90 to $7.05 range. vFundamentals: Wheat export demand continues to eclipse expectations. Traders continue to suggest the supply of milling quality wheat supplies has tightened from earlier expectations because of various weather problems this year. Still, the total supply of wheat is good. Export demand for U.S. wheat could weaken with the Canadian and South American wheat harvest becoming more active, removing Brazilian demand for U.S. wheat for a period.

PERSPECTIVES

FarmWeek Page 16 Monday, September 23, 2013

Don’t take your water for granted

Move young adults toward financial independence Do you have a young adult living in your home? If so, join the crowd.

According to recent Pew Survey analysis of Census Bureau data, “In 2012, 36 percent of the nation’s young adults ages 18 to 31 — the so-called Millennial generation — were living in their parents’ home.”

Multigenerational households are common today for a variety of reasons, KATHY including SWEEDLER unemployguest ment, columnist increased college attendance, student loan debt and a delay in marriage age.

I think most parents look forward to the day that their children are financially independent, but in today’s economy it’s not easily achieved. However, financial independence is reached more easily when young adults have a chance to practice positive financial habits.

It’s the back-to-school season and now’s a timely moment to talk to your young adult about money.

Whether your child is at college, living at home or moved out recently, consider helping your young adult develop a spending plan.

The steps to creating a spending plan include: • List all anticipated costs, • Determine all sources of anticipated income, • Decide together who will be responsible for paying which costs, • Develop a monthly spending plan and • Check how the spending plan is working and revise as needed.

To begin, sit with your young adult and make a list of all anticipated expenses. Include expenses that you, the parent, plan to pay for as well as expenses your young adult will be responsible for paying. Do your best to estimate costs.

Once you have a list of

expenses, talk about who will pay what. This is a good time for young adults to understand all of the expenses related to independent living, including car and health insurance, car maintenance, clothing, food and more.

While you may still be paying some of these expenses, young adults need to be aware that these are expenses they will be paying in the not-too-distant future.

Now is the time to be clear about your expectations as well as to listen.

What are the income sources for the young adult and when will the money be available?

Will your student receive financial aid? Does part of the financial aid package include work study? Do you expect your student to work part-time during college? If working fulltime, are the work hours guaranteed or will they vary?

Sometimes income comes in large payments, such as financial aid, and needs to be spent over the semester.

Many people find it easier to manage this type of income flow if a savings account is used. The savings account can hold the large payment and monthly amounts can be transferred to a checking account for monthly expenses. This can help avoid running out of money before the semester is over!

The next step is to build a monthly spending plan or budget. People have an easier time managing their spending when it is clear how much money is available to spend and what expenses are anticipated during a short-time period such as one month.

The University of Illinois Extension Financial Wellness program offers several budgeting tools, such as an Excel budget form, at {web.exten-

“We need to be prepared to debate the environmental movement with our What policy issue should data as to Farm Bureau be addresshow we can ing in the next five years? best proEditor’s note: Members of the duce from and protect our Illinois Farm Bureau Strength soils.” with Advisor y Teams (SWAT) were asked for their views on Randy Poskin several questions.

Ford-Iroquois County

sion.illinois.edu/financialwellness/resources.cfm}.

Of course, to know if the spending plan is working, your young adult will need to keep track of where his or her money goes. This is a great habit to develop and especially useful during times of transition.

To track expenses, jot down spending once a day or as money is spent. Using a portable device, such as a cell phone, is an easy way to do this.

After a month or two, the spending plan may need to be adjusted. Perhaps you forgot an expense category or some costs are more than anticipated.

If needed, adjust the spending plan as soon as possible before too much spending has occurred. When expenses are higher than anticipated in one category, spending in another area must be decreased or more money (income) must be found.

Money management takes practice and will likely involve a few mistakes along the way. But step by step we can help the young adults in our lives move forward to financial independence.

Kathy Sweedler is a University of Illinois Extension consumer economics educator.

“Help create opportunities for young, small farmers to produce food crops and specialty livestock.”

Darrel Parish Macon County

It’s natural to take it for granted, but water is something no one — whether residing in a bustling city or a small rural community — can live without.

Americans are the largest water users, per capita, in the world. In terms of groundwater, we use 79.6 billion gallons per day. That’s the equivalent of 2,923 12-ounce cans for every man, CYNDIE woman and SIREKIS child in the nation.

Agricultural irrigation is the largest user of groundwater in America at 53.5 billion gallons a day followed by public use via public water systems or private household wells (combined total of 18.3 billion gallons per day). Greater efficiency in either of these uses can lead to considerable savings.

Research on water-efficient and drought-resistant crops continues to be an important focus at bio-science companies and universities with the goal of developing plant varieties capable of producing high yields despite reduced water conditions.

As crops that can flourish on less water become readily available to farmers, the demand for water for irrigation will decline. Another way of looking at it is that as agriculture becomes increasingly efficient, more food, fuel and fiber can be produced on less land.

At the household level, the greatest amount of water used inside the home occurs in the bathroom. The remainder of indoor water use is divided between clothes washing and kitchen

“Keeping nutrients where they can be used (in soil) that enhances market quality.”

Randy Darr Macoupin County

use, including dish washing, according to the U.S. Environmental Protection Agency.

If you’re wondering how much water your household uses, a free online calculator developed by the National Ground Water Association can help you figure it out.

An emerging concern in recent years is the occurrence of pharmaceuticals and personal care products in water. Much research remains to be done to assess the health risks of trace amounts of these items.

Alternative disposal strategies for these substances, other than flushing or washing down sink drains, are increasingly being advocated. Participating in the Drug Enforcement Agency’s National Take-Back Initiative for prescription drugs on Oct. 26 is one option to consider.

If you depend on a private well for water, keep in mind that the chemistry of groundwater flowing into a well reflects what’s in the environment. Examples of naturally occurring substances that can present health risks are: microorganisms, such as bacteria, viruses and parasites that tend to be more common in shallow groundwater; radionuclides, such as radium, radon and uranium; and heavy metals, such as arsenic, cadmium, chromium, lead and selenium.

It is up to private well owners to make sure their water is safe. If you’re seeking information, {Wellowner.org} is a concise, online one-stop resource on private water well systems and groundwater.

Cyndie Sirekis is director of news service at the American Farm Bureau Federation.

“Air and water quality issues.”

David Wessel Cass-Morgan County