Farmweek sept 9 2013

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A b o u t 5 0 c yc l i s t s p e d a l e d across four counties last week sharing ag facts at schools and raising IAITC funds................2

County Farm Bureau leaders recently met their Chicago-area adopted legislators and toured their districts for the first time................5

Silage and corn harvest got under way across Illinois in dry conditions expected to continue at least for the near term..................10

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Durbin: Peoria, other locks moving toward failure Monday, September 9, 2013

BY MARTIN ROSS FarmWeek

Periodicals: Time Valued

Creve Coeur Mayor Fred Lang recognizes that a good portion of what passes through the aging Peoria Lock stays within his community. And while Illinois farmers, communities and shippers have temporarily given up on a longpromised new Peoria Lock on the Illinois Sen. Dick Durbin River, they seek support for bipartisan House-Senate measures that would expedite repairs to it and other Midwest facilities currently locked in a $60 billion water projects “backlog.” Mayor Lang last Thursday joined Springfield Democrat U.S. Sen. Dick Durbin and House Transportation and Rep. Cheri Bustos Infrastructure Committee member Cheri Bustos, an East Moline Democrat, in supporting

Two sections Volume 41, No. 36

‘Damage over frequent use is only going to get progressively worse.’ — Doug Morgan Assistant lockmaster, Peoria Lock

House passage of navigation project/funding reforms via the Water Resources Development Act (WRDA). Durbin and Bustos have teamed with Taylorville Rep. Rodney Davis on WRDA provisions that would foster public-private partnerships designed to spur U.S. Army Corps of Engineers lock improvements. The pair toured the crumbling Peoria Lock, opened in 1939 and rehabbed in the late ‘80s, prompting Durbin to hope “that what I see on top of this facility does not reflect what’s going on underneath.” That was disturbing to Durbin, who deemed the navigation system “an important part of our commerce and our future.” “The impact (of the Peoria lock) is very high with regard to the economy of the area as well as the nation because of the products that are shipped up and down through here,” Lang told FarmWeek. “It’s really vital to our economics and our actual growth,

which we hope to continue. It helps our whole tri-county area and the state. It’s a big thing.” Bustos hopes WRDA can clear her committee in September and reach the House

floor “some time in October.” She cited widespread support for WRDA reforms because waterway transportation is “so important to our overall economy,” accounting for move-

COMBINES ROLLING

ment of 60 percent of ag exports. Beyond the Peoria Lock’s crumbling concrete walls, Assistant Lockmaster Doug Morgan cites the need to rehabilitate two leaking miter gates and a roughly 8-footlong tear in the outer “skin plate” along the lock’s lower land side wall. Those issues combine to slow both filling and emptying of the lock chamber involved in moving barge tows through. See Locks, page 4

Corn harvest starts on the Koeller Farm near New Canton in Pike County. Brothers Jim Koeller and Edwin Harpole reported yields were average and moisture tests were in the low 20s. Scattered corn harvest was reported in Macon and Christian counties, while other farmers around Illinois chopped corn silage. Read harvest and weather news on page 8. (Photo courtesy Pike County Farm Bureau)

Biotech: Europe and the ‘real world’

By Midwest standards, Paul Temple is clearly diversified. The Brit’s Yorkshire operation includes 975-plus acres of corn, wheat, barley, oilseed rape, potatoes and vining peas. But the founder of the European Union’s (EU) Farmers Biotech Forum longs for a time when growers across the continent can achieve even greater diversity through technology. Temple’s enjoyed a taste of the technology as a trial producer of herbicide-tolerant rape (canola). But it’s a taste few farmers in northern Europe have been able to share or even sample. Temple was a featured guest at Champaign’s International Biotechnology Forum, which afforded him “a great opportunity to listen to how the real world is really working.” A growing number of British farmers recognize “how globally accepted (biotech crops) are,” he said. But many Europeans FarmWeek on the web: FarmWeekNow.com

“don’t have a concept” of the research and development invested in biotechnology, and companies often are “demonized for profiting from it,” Temple related. EU resistance to biotech crops perpetuates “the feeling that Europe is anti-science,” and has led to key multinationals such as BASF and Monsanto “walking out of Europe.” European growers are “hugely dependent” on vegetable protein imports because “we can’t grow them ourselves.” “Most farmers have never seen GM (genetically modified) crops in the field in Europe,” he confided. “We don’t actually see adverts for those traits, because they don’t even consider that we’re likely to grow them. It’s just not part of our equation.” See Europe, page 3

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


Quick Takes

BIOTECHNOLOGY

FarmWeek Page 2 Monday, September 9, 2013

Traits aimed at crop adaptation, ‘new’ germplasm expands range BY MARTIN ROSS FarmWeek

RIDING FOR AG LITERACY — Some of the 50 cyclists who rode in the Illinois Agriculture in the Classroom (IAITC) bike ride pedal toward Aledo in Mercer County. The 18th annual bike ride wound through Knox, Henry, Mercer and Warren counties Sept. 2-4. Along with raising money for IAITC, the riders stopped at 19 schools along the route to inform more than 5,000 students about agriculture and bicycle safety. Look for an upcoming video of the ride at {FarmWeekNow.com}. (Photo by Ken Kashian)

COURT RULES ON GROWMARK CASE — In a Memorandum Opinion filed on Aug. 30, the Ninth Judicial Circuit Court in Fulton County granted GROWMARK Inc.’s motion for partial summary judgment in the cooperative’s lawsuit relating to Sunrise AG Service Co. The court also denied Sunrise’s cross motion for partial summary judgment. A summary judgment involves a procedure in civil litigation to promptly conclude all or part of a case without a trial. A motion for summary judgment can be granted when no important facts are in dispute, and the judge can interpret the law to decide a disputed legal issue. The lawsuit relates to Sunrise’s directors issuing shares of Sunrise Class B Preferred Stock to themselves. The court ruled that this action “was precisely that which was prohibited by the Bylaws and in clear contravention of the corporate purposes set forth in the Articles” of Sunrise. In a related Order filed on Sept. 3, the court ordered that the Sunrise Class B shares the individual Sunrise directors issued to themselves “are hereby revoked, rescinded and recalled thus rendering that transaction null and void.” The portions of GROWMARK’s Amended Verified Complaint not included in its motion for partial summary judgment remain before the court and can proceed to trial after pre-trial discovery has been completed.

(ISSN0197-6680) Vol. 41 No. 36

September 9, 2013

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AquaMax drought resistance trait, Soper told FarmWeek. AquaMax was introduced two years ago in “drought-prone” areas and expanded to parts of the Corn Belt last season. DuPont will go wide across the Corn Belt in 2014, and is looking at AquaMax products for the Southeast U.S. “Each area has a slightly different definition of what ‘drought’ is,” Soper said. “We’ve had great performance over the last couple of years. It will be interesting to see what this heat that’s come across the U.S. will do to that performance.” While Syngenta’s Agrisure Artesian water “optimization” trait showed favorable results in various Corn Belt locations last year, Boersma stressed it is “not just meant for drought situations.” Syngenta claims use of Artesian varieties can increase corn yields by 15 percent under short-term dry conditions at key development stages, “like a lot of places have experienced here lately,” he said. Monsanto plans to release its DroughtGard trait in Corn Belt stacked hybrids following what Vaughn characterized as this season’s “top-end performance” in western plains states. He emphasized the trait, which helps the plant retain moisture during dry periods, is merely one component in relieving regional water pressures. “Pick the right germplasm for your region

Solid genetic stock is the chassis, biotech traits the upgrades that boost performance and yield the driver for major crop providers gearing up to roll out new models. During the Decatur Farm Progress Show, representatives of three major biotech companies highlighted expanded base genetics, new multi-faceted approaches to insect control, drought survival traits and integrated efforts to sustain protecFarmWeekNow.com tions throughout an unpreFind out more about the new dictable season. models of biotech traits at “We are talkFarmWeekNow.com. ing much more about systems these days than simply about a new ‘product launch,’” Monsanto Agronomy and Technology Team leader Ty Vaughn told FarmWeek. “We’re optimizing plant density, but we’d also like to optimize plant conditions throughout the season. What are you scouting for at what time so you can retain optimum yield potential and prevent it from being lost to disease, drought, insects or any other stresses within the environment?” Multiple modes Development of multiple modes of action has been a key thrust amid heightened concerns about insect and weed resistance to existing chemical and/or biotech protection. On the weed side, Monsanto is seeking possible 2015 commercialization of ‘We like to think that the genetics are its Roundup Ready Xtend systhe base chassis you’re working with, tem, which would integrate a and the (biotech) traits are the glyphosate-dicamba premix herbicide with a new soybean upgrades on top of that.’ dicamba tolerance trait stacked atop existing Roundup Ready protection. — Eric Boersma Syngenta Syngenta’s Agrisure Duracade, aimed initially at the Eastern Corn Belt in 2014, is a “dual mode” rootworm product that combines two Bt traits to address threats at dif- and (farm) water management information — ferent stages of corn development. New understanding the agronomic situation you germplasm acquisitions will expand Duracade might be in, how you’re going to use water in offerings over coming seasons, Syngenta corn the system — and then make sure you have the product manager Eric Boersma said. trait to bolster the system,” Vaughn advised. At the same time, biotech providers continue Refreshing the pool to focus on controlling insect threats that arise Boersma sees Syngenta at a “tipping point” throughout the season. Syngenta’s stacked-trait of new corn advances with addition of newly Agrisure Viptera focuses on a range of aboveacquired Golden Harvest and Garst lines into ground pests including corn borer, western “the Syngenta germplasm pool.” bean cutworm, corn earworm, black cutworm That should expand the range of geograand fall armyworm. phies and conventional attributes to which DuPont plans to expand the range of varibiotech improvements can be added. Accordeties, including its AcreMax above- and belowing to Boersma, overall yield improvement is ground pest protections in 2014, as well as its the major goal of germplasm expansion, AcreMax Xtreme single-bag Bt refuge line. By though biotech insect resistance can improve mid-decade, the company hopes to introduce marketable yields by reducing insect and bird next-gen insect protections ostensibly based on feeding damage and resulting disease potena new DP 4114 gene now in regulatory review, tial. DuPont Vice President of Crop Genetics “We like to think that the genetics are the Research and Development John Soper reportbase chassis you’re working with, and the ed. (biotech) traits are the upgrades on top of “Insects will continue to evolve over time,” that,” he told FarmWeek. “Over the next few he said. “They’re going to develop some toleryears, we’re looking at being able to get a lot of ance to the Bt genes we’ve put out there. It’s these traits into the same products and into important for us to continue to develop a these new genetics. pipeline of new, renewing genes.” “Previously, Artesian didn’t have Viptera or Water retention Duracade (traits), or Viptera didn’t have DuraWith the 2012 drought still fresh in Midwest cade or Artesian. Now, we’re getting products producers’ minds, DuPont-Pioneer plans to that have two of the three events or all three expand its “pipeline” of products featuring its together.”


BIOTECHNOLOGY

Page 3 Monday, September 9, 2013 FarmWeek

Trade, science and security inextricably tied

As global food demand moves toward doubling from 2000 levels by 2050, solid trade and sound science no longer will be luxuries for the more affluent nations. That’s according to Dick Crowder, former top U.S. ag negotiator with the U.S. Trade Representative’s office. Demand is rising fastest “in areas where production cannot keep up with consumption,” Crowder told FarmWeek at the recent International Biotechnology Symposium in Champaign. The key to developing nations meeting demand lies not in agricultural self-reliance, but in fostering “reliable trading partners,” he said, arguing that “without

efficient trade flows, we do not solve food security problems.” International trade barriers that ignore sound Dick Crowder science “hurt both the supplier and the customer,” he said. And given the need to multiply production, Crowder warns internal policies that impede crop technologies could render European countries or even the U.S. “a supplier of last resort.” “Trade’s going to have to flow to keep up with consumption,” he said. “It’s going to be about efficient trade flows and reliable trading partners. If you’re a sup-

plier who’s seen as unreliable, you’re going to be a residual supplier. They’ll go to everyone else first. “By the same token, if Bob Thompson you’re a net importer and you need product, but you can make arbitrary decisions in terms of keeping a product in or out, there’s going to be a risk premium built into your price — it’s going to add to your price. This is a price security issue and it’s a physical security issue. It’s a new environment.” Current U.S.-European Union (EU) and Trans-Pacific Partnership trade talks could

foster global standardization of biotech rules that threaten trade flows, Crowder said. Elimination of scattershot global biotech standards appears as crucial to the EU as to the U.S. Crowder noted Europe’s “precautionary principle,” which holds a technology potentially harmful without evidence of health threats, is “a longstanding issue in trade negotiations.” Bob Thompson, ag economist and former World Bank development specialist, sees European attitudes already shifting amid global demand pressure. Despite efforts by the EU environmental directorate and groups such as Greenpeace “who find anti-biotechnology measures to be good fundraising strategies,” Thompson said

major EU ag, science and trade leaders are “all of one voice” in support of biotechnology. “With things like the (global food) price spikes in 2008 and 2011, food riots in several dozen countries, governments being overthrown in part due to the high price of food, it’s being recognized that we’re going to have to use all the tools of modern biology if we’re going to feed the world’s larger population better than today at a reasonable cost, without damaging the environment,” he told FarmWeek. “The argument that only about 10 percent more land can be brought into production worldwide if we’re not willing to cut forests is starting to ring true with environmentalists.”

“Latin America” is a sprawling label that encompasses Central and South America, the Caribbean, rain forests, savannahs, pampas and a shifting patchwork of biotech regulatory policies that challenge growers and marketers. Brazil led Latin American biotech crop plantings in 2012 at 90 million acres, followed by Argentina at 23.9 million acres (see accompanying stories). Rocha notes proliferation across “the growing market areas” of South America, with heavy biotech corn and soybean acreages in Uruguay and Paraguay, nearly 2.5 million acres of soybeans in Bolivia, and modified cotton, corn and flowers in Colombia.

Chile, as well, planted 156,000 acres of biotech beans, corn and canola for seed production. To the north, Mexico produced biotech beans and cotton and conducted field trials with biotech corn, while Honduras raised a modest 66,000-some acres of Bt/herbicide tolerant corn. In Cuba, known for biotech health innovations, growers planted 7,400 acres of biotech corn last year. Costa Rica has developed its own domestic transgenic rice and pineapple “events” now in field trials, while Panama has even launched biotech salmon production. But biotechnology has not taken root across all of Latin America. Rocha noted Venezuela, Nicaragua,

Ecuador and Peru have banned biotech crops, “even though they are consuming them.” Bolivian law prohibits production of biotech crops except soybeans — “a good example of pragmatism,” he mused. Even in innovative Costa Rica where biotech crops have been approved since 1991, a major election-year debate has erupted regarding internal production of biotech corn, Rocha said. “Everybody is having contact with GM products,” he told FarmWeek. “The only difference is that not all these countries are producing these GM products. “All of us are in contact, and there has been no single case of a bad effect on human or animal health coming from one of these products.” Rocha stressed the value of “education and efficient communication” as first steps toward biotech acceptance,

simultaneous “synchronous” product approvals and potential harmonization of Latin American biotech policies. He highlighted Costa Rica’s

planned Biotechnologia program, which aims to target “very simple but very powerful messages” to students. — Martin Ross

foods, “we haven’t seen the public migrating toward them,” Temple said. He noted Spain has “sorted out its supply chain” to support biotech crops and meet consumer demands. But France’s biotech production moratorium (“an act of politics”) has held despite a court ruling against it. Amid a push to join the EU, Romania, which previously raised and exported biotech soy, now imports soy protein. “We have sophisticated NGOs (nongovernment organizations) that use this particular area as oxygen to raise their profile and (membership) subscriptions,” Temple noted. “Is there any hope? Certainly not in the

near future. We are noticing language changing with our politicians — support is being given, strongly within the UK. It’s getting rid of the problems in Europe that will be the challenge.” — Martin Ross

BY MARTIN ROSS FarmWeek

Latin American biotech policies divergent, evolving

Europe

Continued from page 1 EU importation of biotech commodities while simultaneously denying biotech production is an “act of hypocrisy” that also hurts the European livestock sector, Temple said. European retailers have dropped “GMfree” requirements because of the cost of sourcing identity-preserved products. Although consumers can access labeled organic

Paul Temple

Christmas in the pampas: Biotech Argentine miracle Genetic modification has generated a major transformation in Argentina, bringing sustainability and widespread new productivity to South America’s corn powerhouse. Buenos Aires-area producer/farm consultant Santiago Del Solar notes Argentine growers adopted corn hybrids “only in the mid-‘50s” and entered the Biotech Age in 1996 with a single soybean herbicide tolerance trait. In both cases, the change proved revolutionary. Since the late ‘90s, no-till conservation practices have taken hold over roughly 80 percent of Argentina’s farm acres, Del Solar told FarmWeek at the International Biotechnology Symposium in Champaign. “That trait helped us a lot in developing that kind of (conservation) technology,” he said. “We’ve also lowered our costs for herbicides a lot with biotech. Before, I was using six, seven, sometimes eight different herbicides. Now, we’re using one or maybe two when we have some resistance in weeds. “And now, we can plant two types of corn because of the biotech protections for insects we have. We plant early corn, as my dad did, and late corn, so we diversify risk. Before, that was impossible with the high temperatures. When the corn was in D5 to D6, it was destroyed by insects. Biotech changed our lives.” Availability of biotech corn has resulted in what Del Solar calls “Christmas in the Pampas” — expanded wintertime cropping in the grassy lowlands, where growers previously had “one shot” at a profitable harvest contingent on December rains. Today, farmers in the northern Argentine region enjoy two crops, which set in December and February. In 1996, national approval for production of biotech beans “was very quick,” Del Solar said. “Then, when the politics came in, things changed a little bit,” he recalled, as policymakers adopted a “mirror policy” that linked Argentine approvals to European Union import approvals. That policy eventually was abandoned. While Del Solar feels the current approval process could be speedier, “every year, we have different traits approved.” That doesn’t mean Argentina ignores marketplace prerogatives: China only last month approved its first major shipment of biotech Argentine corn, a development Buenos Aires officials hailed as a victory in export competition with the U.S. “If a trait is good for us, we approve it,” Del Solar stated. “If the Europeans don’t like it, they don’t. We’re not selling corn to Europe. We’re selling corn to northern Africa and Asia and soybeans mainly to China and India.” — Martin Ross


GOVERNMENT

FarmWeek Page 4 Monday, September 9, 2013

House preparing to stage fall ‘Immigrationpalooza’?

BY MARTIN ROSS FarmWeek

Immigration reform advocates hope lawmakers return to Washington this week reinvigorated, rededicated and more thoroughly educated on the impact future labor policy has on agriculture and the overall economy. The August recess provided the opportunity for a nationwide forum on the issue, as farmers, business interests, the faith community, law enforcement and others highlighted the need to ensure a reliable domestic labor supply and fair, economically sustainable worker standards. Illinois interests tapped the national Bibles, Badges and Businesses for Immigration Reform coalition to help prepare for a debate that’s stirred controversy particularly on the political right. American Farm Bureau Federation labor policy specialist Kristi Boswell noted nationwide efforts to drive reform based on “economics rather than emotion.” That’s important as the House Judiciary Committee

prepares to drop in remaining pieces of a labor policy plan amid a tight fall calendar complicated by issues in Syria. “We’ve had a very effective August on the grassroots front, getting a positive voice in support of immigration reform out in the countryside,” Boswell told FarmWeek. “It’s been very impactful. “But the calendar is not our friend. In September, the House is only in session nine days, and those will be full — very full. We’re hopeful immigration will be debated on the floor in late October, early November.” Prior to recess, the Judiciary Committee filed four less controversial immigration pieces, focusing on security, ag labor and “high-skilled” foreign workers. The House Homeland Security Committee dropped in an added border security piece. The break laid groundwork for three more, potentially contentious measures. Judiciary may unveil what Boswell termed a “kid’s act” (reflecting

the Development, Relief, and Education for Alien Minors or DREAM Act), provisions for “low-skilled” nonag workers and measures addressing the estimated 11 million undocumented workers now in the U.S. House leaders hope ultimately to stage what Boswell jokingly refers to as an “Immigrationpalooza” melding all pieces into a proposal for conferencing with the Senate’s comprehensive labor-security proposal. While he feels the Senate plan isn’t perfect, Arthur Great Pumpkin Patch owner Bruce Condill argued “we could probably live with it” and urged the House to hasten debate “so we can hash it all out.” Condill told Illinois congressmen “there’s a very strong need for immigration reform.” Collinsville Republican Rep. John Shimkus noted concerns about perceived opportunities for existing undocumented workers among many in his district, but stressed the merits of bringing them

“out of the shadows.” Condill said crops such as peaches and pumpkins are “very important in our (Illinois) economy,” and Shimkus

cited additional labor needs in southern Illinois’ dairy sector. “Intensive agriculture really relies on immigrant labor,” Shimkus maintained.

U.S. Rep. Cheri Bustos, D-East Moline, left, and Springfield U.S. Sen. Dick Durbin, D-Springfield, center, tour the Peoria Lock last week, as U.S. Army Corps of Engineers Rock Island District Commander Col. Mark Deschenes outlines the history of and concerns about the Illinois River facility. (Photo by Martin Ross)

Locks

Continued from page 1 The 600-foot lock serves 1,200-foot tows, further delaying ag freight. Morgan told FarmWeek “damage over frequent use is only going to get progressively worse,” threatening the lock’s “structural integrity.” Durbin warned that “with each passing day, there is a chance of (lock) failure.” That endangers Illinois’ key competitive edge in the global soy market, Illinois Soybean Association Treasurer Rob Shaffer said. When the rivers are open, it costs Midwest growers roughly 20 cents per bushel to ship beans to port, versus about $1 per bushel in South America, Shaffer said. “If you have a failure, you’re talking about closing the lock to industry and to passage maybe for days to do the work that needs to be done to get everything back in operation,” Morgan advised.


GOVERNMENT

Page 5 Monday, September 9, 2013 FarmWeek

County FBs tour adopted lawmakers’ districts

Leaders from several county Farm Bureaus recently toured the Chicago-area districts of their adopted legislators. Some legislators met their adopted farmers for the first time. The district visits show adopted legislators that Farm Bureau members are as interested in learning about their districts and concerns as they are in helping legislators learn about farming and rural issues. The district visits also provide an opportunity to talk with Chicago legislators about important issues in the ag community. Common discussion topics during the visits included biotechnology, food labeling, regulations on agriculture, pensions and the state’s financial climate. Inaugural visit for Greene County Farm Bureau Newly elected legislator Sen. Julie Morrison, D-Deerfield, chose Greene County Farm Bureau as her adopted county because she grew up in nearby Beardstown. County Farm Bureau leaders made their first visit to her district on Aug. 12. They were joined by Cook and Lake County Farm Bureaus. The driving tour included stops at the Lake Bluff Sunrise beachfront and Walgreen’s corporate headquarters and Healthy Living Center. Morrison is planning an October trip to learn more about agriculture in Greene County. Grundy County Farm Bureau meets Rep. Moylan Rep. Marty Moylan, D-Des Plaines, was excited to join the Adopt-A-Legislator program because of his agriculture connections. He owned Wisconsin farmland and an antique tractor. Grundy County Farm BY CHRISTINA NOURIE

Bureau leaders were joined by Cook County Farm Bureau for an Aug. 20 district tour. Stops included the first McDonald’s Historical Museum, the Elk Grove Village Park District’s Recreation Center and the Hartmarx factory, which makes men’s suits and is an important employer in the district. During lunch, Moylan and the farmers discussed everything from pension reform and education and to his experience as the eldest of 12 children. The representative plans to bring his wife and staff to visit Grundy County this fall. Logan County Farm Bureau tours Fine’s district As a recently elected state representative, Rep. Laura Fine, D-Glenview, jumped at the chance to join the Adopt-ALegislator program and was especially excited about the opportunity to bring her two teenage sons for a Logan County farm tour this fall. Logan County Farm Bureau leaders traveled to the suburbs Aug. 21 to meet Fine, her husband, Mike, and assistant Shiva Mohsenzadeh. They were joined by Cook County Farm Bureau leaders for a tour that included the Holocaust Museum and The Grove National Historic Landmark. Lunch discussion included biotechnology, pensions and taxation issues in Illinois. Rep. Drury hosts Piatt County Farm Bureau Piatt County Farm Bureau leaders made an Aug. 23 inaugural visit to the district of Rep. Scott Drury, D-Highwood. The representative and his assistant, Brittany Brown, hosted the Piatt County Farm Bureau along with leaders from

Whiteside County FB meets adopted legislator

BY HEATHER COMBS Whiteside County Farm Bureau farmers met with their new adopted legislator state Rep. Emanual “Chris” Welch, D-Westchester, when he hosted them for an Aug. 21 district tour. After meeting at the district office, the representative and his staff member, Henry Norris, gave their visitors an overview of the legislative district and some of the successes and challenges of his district. The group toured one of several community gardens and learned about gardening programs for area youth. The next stop was the Proviso Mathematics and Science Academy, which offers students a rigorous academic curriculum focusing on math, science and technolo-

gy. The school was created in 2005 largely due to work done by the representative while he was the school board president. The tour concluded with lunch and conversation about several general topics related to agriculture including how farmers grow crops. The representative is interested in coordinating a bus tour for school children in his district to Whiteside County this fall. Whiteside County Farm Bureau coordinated two previous tours for Welch’s predecessor. The county Farm Bureau looks forward to hosting the same type of visit this fall for Rep. Welch. Heather Combs is the Illinois Farm Bureau assistant director of state legislation.

Cook and Lake County Farm Bureaus. After meeting at Drury’s office, the group discussed key policy issues, including pensions and the business climate. The farmers received a personal tour of the Chicago Botanic Gardens, a 385-acre plant museum with 26 display gardens. The representative looks forward to touring Piatt County farms this fall and continuing discussions with his adopted farmers. Sangamon County Farm Bureau tours senator’s district Sen. Mike Hastings, D-Matteson, didn’t waste any time after joining the Adopt-A-Legislator program in the spring. By May, he had toured farms and met with farmers in Sangamon County. On Aug. 26, his adopted farmers traveled to the southern Chicago suburbs where they were joined by the Cook and Will County Farm Bureaus. The senator and farmers discussed biotech and food labeling, pensions and the state budget.

State Sen. Julie Morrison, D-Deerfield, second from right, hosts her adopted farmers with the Greene County Farm Bureau and leaders from Cook and Lake County Farm Bureaus for a tour of the Lake Bluff Sunrise beachfront. Several county Farm Bureaus recently toured the Chicagoarea districts of their adopted legislators. (Photo by Christina Nourie)

Their whirlwind tour included stops at the senator’s alma mater, Andrew High School in Tinley Park, and Bryco Machine, a family-owned manufacturer that produces Bettinardi golf clubs. A tour highlight included the Bettinardi golf showroom and trying out some golf clubs. They traveled to Southwest Community Services, an organization that provides educational, social and job training opportu-

nities for people with special needs. The tour ended with a White Sox game at U.S. Cellular Field. The Sangamon County farmers look forward to hosting the senator again, possibly this fall, and inviting him to the IFB Annual Meeting in December. Christina Nourie is the Illinois Farm Bureau northeast legislative coordinator.


FarmWeek Page 6 Monday, September 9, 2013

CROPWATCHERS Bernie Walsh, Durand, Winnebago County: Most of Winnebago County was fortunate to get around 1 inch of rain last Friday night (Aug. 30). The storm came with enough lightning to cancel all northern Illinois high school football games. The eastern half of Stephenson County got up to 3 inches, but they had some hail and a lot of wind damage. Corn-on-corn fields were down the most. Some silage is being chopped. Some yards were mowed for the first time in five weeks. A few bean fields are starting to turn yellow. Pete Tekampe, Grayslake, Lake County: A very mild week in Lake County. We received 0.2 of an inch of rain on Friday (Aug. 30) and then 1 inch on Sunday (Sept. 1). That helped, but with the heat, it is already gone. The corn was showing heat stress Thursday and so were the beans. Corn is OK and drying fast. Beans, on the other hand, need moisture and time. The cool evenings are not helping. Leroy Getz, Savanna, Carroll County: Dry conditions continue. The heat is killing the crops in my area. They seem to only be surviving on their genetics. With growing degree units now at 2,511, the 104-day corn is black layered and testing about 26.5 percent moisture. Combines may start next week. Some late soybean fields have many flat pods, or one or two bean pods. They seem to be suffering more than the earlier-planted beans. Hay cuttings are less than expected with only one large round bale harvested per acre. Pray for some rain. Ryan Frieders, Waterman, DeKalb County: Last weekend brought some needed rain to the area. The corn is in the early dent stage, and the moisture should help with the test weight. Soybeans are filling pods. Corn rootworm beetles continue to feed on ear tips and reproduce for next season. Everyone in our area is excited about the Sandwich Fair. Larry Hummel, Dixon, Lee County: Mother Nature squeezed another shower into the month of August for parts of northern Illinois. During the night of Aug. 30, we received anywhere from 0.1 to 0.4 of an inch of rain. If you are on the light side of that, it probably didn’t make much difference, but if you were lucky enough to get 0.30.4, it should help the soybeans a little and help corn finish the season. For corn on the lighter soils, the season is already over. I saw the first combine harvesting corn Thursday. We are probably two to three weeks away on our farm. Ken Reinhardt, Seaton, Mercer County: Another dry week. The new drought monitor shows Mercer County and the western edges of Henderson and Hancock Counties in severe drought. At Moline airport, we are still 4 inches above average for rainfall for the year. I saw some corn silage cut yesterday, and I am sure there will be corn shelled the week of Sept. 15. Ron Moore, Roseville, Warren County: We did not receive any rain again last week. That makes more than five weeks since any rain. The corn is beyond help. What we have is what we will harvest. We should start chopping silage this week. Rain would help the soybeans, but there is none in the forecast. None of the beans have started turning yet. I still have one group of cattle to bring home from summer pastures. There is a little water and not much grass at this point. Please be safe as you start harvest this year. Jacob Streitmatter, Princeville, Peoria County: Another hot and dry week here. No rain for a long time, and a lot of corn is starting to die and dry down. Some soybeans are starting to get ripe, while others are holding on for dear life in hopes of a drink. No rain is forecast. It will be interesting to see how yields will come out, but they are far away from the potential of July.

Mark Kerber, Chatsworth, Livingston County: It is now September, but the summer weather continues. This past week was another dry one, but cooler. Farmers are getting machinery ready for harvest. We have been taking yield checks. We will also be tissue testing corn to see if nitrogen was over- or under-applied. One can sure notice the RIB corn; the ears are less than half the size of the traited corn. This area is in the epicenter of rootworms. Applying a soil insecticide at planting gives another mode of action against these pests. Markets are volatile. Many are hoping for a premium on early harvested corn. Storage bins are empty. These usually get filled first, especially with new-crop corn price with a 4 in front of it. Ron Haase, Gilman, Iroquois County: The flash drought continues to affect crops as they approach maturity. Dry weather is expected to continue. Corn development continues to range from R4 to R5. The most developed corn has the milk line 90 percent of the way down the kernel. A majority of the corn has the milk line about halfway down the kernel. At this point, 12 percent of the dry matter still needs to be filled in the kernel. The kernel size is varying quite a bit from what I have seen. Most soybean fields are R6. The local closing bids for Sept. 5 were nearby corn, $5.70; new-crop corn, $4.40; nearby soybeans, $15.00; new-crop soybeans, $13.50. Local farmers have been preparing their machinery for harvest and attending seed plot tours. Brian Schaumburg, Chenoa, McLean County: Soybeans took it on the chin with 30-plus days without rain. A grey pallor signaled a lack of moisture and now leaves are turning. Corn hand-sampled is 30 percent and a couple of combines rolled before shutting down with wet corn. Extreme variability on moistures, but yields are good. Plot tours and appreciation dinners are plentiful. Markets are in an “I’m from Missouri” state of mind. Nearby corn $5.38, $4.48 fall; nearby soybeans $15.05, $13.47 fall; wheat $5.99. Steve Ayers, Champaign, Champaign County: Meandering fields, still whistling “Cobwebs in My Rain Gauge”. Corn is denting and bean pods are doing remarkably well, but desperately need moisture. Most beans average 30 or so pods per plant, but I did find one with 54 pods. Meteorologists used terms like isolated, scattered, pop-up or occasional showers in the forecast. That means your neighbor across the road will get 0.5 of an inch in 30 minutes on his fields while you watch and remain dry. Sept. 15-21 is National Farm Safety & Health Week. This year’s theme is Working Together for Safety in Agriculture, so let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: It’s sort of a gloomy report from our place as we have had our attention shift from less grain, less rain and less income to some accidents that resulted in loss of lives. One involved an ATV where the young farmer was found still seated on the machine. Another older semiretired farmer was painting and fell off the ladder. He is hospitalized with a back injury. Yet another young farmer was killed when his vehicle ran off the road throwing him out because of no seat belt. This all within approximately a five-mile circle. So the old saying, “be careful” still applies, even if you are only just walking across the road. As for crops, it’s a rerun of last week as the rain gauge is still empty, and the bushels are getting less every minute. Tom Ritter, Blue Mound, Macon County: A little bit of harvesting going on in southern Macon County. One or two people per elevator, but moisture continues to run more than 30 percent. We tried corn earlier in the week and found some as low as 32, but 34 to 36 seemed to catch quite a bit of it. We are mainly going after earlier premium, basically selling old corn into the market versus selling it for fall. We were very pleased with yields. The majority of the corn is still two to three weeks off, and that is some of the earlier-planted corn. Some of the end of May/late June corn will definitely be an October harvest. The sad part has been the continued, dry weather. It has probably taken its toll on the soybeans. Remote chances of showers were predicted for the weekend.

Todd Easton, Charleston, Coles County: Harvest is quickly approaching as the Coles County area continues to miss rainfall and temperatures get into the 90s. A yield tour conducted this week by a local insurance representative pegged corn at 151 bushels per acre and showed a lot of variation in the 20-plus fields measured. Observations were made that both corn and bean fields would work rapidly toward maturity if current conditions persist. Soybeans are most certainly reaching the 11th hour. With limited chances of rain in the near term, final yields may not even be as good as last year. Jimmy Ayers, New City, Sangamon County: The past week has been extremely dry. Crops are maturing a little bit. We had a county Farm Bureau yield survey done Thursday. Quite a range in Sangamon County. The high was 265.6 and the low was 154.8. The average for the county was 190.8, which was up from last year’s 131. A low of 154 may not be what farmers were looking for, but there is some of that around. We had some corn shelled in Sangamon County last week. My understanding is moisture ranged from 31 to 34. Some of the corn is still green. Some fields have actually run out of nitrogen or plant food, and the plants are maybe not coming up to their full yield potential. We are still pulling tissue samples to figure out what is going on in the plants’ environment at this time. The other thing you might be thinking about is cover crops. Doug Uphoff, Shelbyville, Shelby County: Some corn is being shelled. Testing 25 to 32. No one is saying what it is yielding. We had some farmland sell a mile west of us for $11,000 per acre. It was Drummer-Flanagan soil. Soybeans have quite a few pods, but are dying from lack of moisture. We need rain badly, but that’s not really news. We had 3.7 inches of rain in July and 0.01 of an inch in August. There was some rain down by Stewardson accompanied by high winds that flattened some corn. David Schaal, St. Peter, Fayette County: We received almost 0.5 of an inch of rain on Saturday (Aug. 31), along with some wind. The rain was welcome, but the wind was a little hard on some of the corn. Our crops still need more water. There is also some sudden death syndrome showing up in several bean fields. The earlier-planted beans look like they are going to be better than the laterplanted ones, but if it rains, that could change. Have a good week. Jeff Guilander, Jerseyville, Jersey County: I guess you just can’t have it all. The weather that is getting the corn moving is really taking a toll on the soybeans. With all the problems, corn yields do look more consistent than expected and kernel size will definitely help. Soybeans are showing more stress every day and the only field that was planted in early May around this area is starting to turn. Looks like the dryers may be able to run in another couple of weeks. Dave Hankammer, Millstadt, St. Clair County: Last week, we saw some storms move through the area with high winds leading the front. Some cornfields received damage due to the winds knocking down weakened corn plants due to the recent hot, dry weather. Rainfall was spotty at best with most of the area receiving zero to a trace of rain while isolated areas to the east and southeast received up to 2 inches. The temps cooled down to the 80s and increased back to the 90s as the week progressed. Corn harvest has started in the river bottoms with the earliest-planted fields. No reports on yield or quality at this time. Several soybean fields in the area have displayed sudden death syndrome with isolated spots dying off. This crop needs rain, especially the later-planted fields. Local grain bids are corn, $4.73; soybeans, $14.23; wheat, $5.88. Have a good week.


Page 7 Monday, September 9, 2013 FarmWeek

CROPWATCHERS Dan Meinhart, Montrose, Jasper County: Showers and thunderstorms moved through the area Saturday evening (Aug. 31). Some areas experienced high winds that damaged buildings and crops. Very isolated areas received about 1 inch of rain, but most received very little or no rain. Warm weather has returned. Some silage choppers are running. Stalks are drying very fast on the early planted corn. The later-planted corn and soybeans are under severe stress. No chance of rain until midweek. Kevin Raber, Browns, Wabash County: Widely scattered rain fell this past week. Some areas reported 3 inches or more. I dumped 1.5 inches out of my rain gauge. The rain really helped the soybeans. Many fields were showing a lot of stress before the rain. Corn harvest has started. The yields I’ve heard are good, but the moistures are still close to 30 percent.

Rick Corners, Centralia, Jefferson County: Every day is the same. Hot and dry. A lot of corn will be completely brown in another week. At this point, it looks like the beans may be much worse than last year. Oh my.

Randy Anderson, Galatia, Saline County: A great week for temps, but no rain this last week. Corn has done all it can do. I feel stalk quality will become a real issue because the plant is trying to put everything into the ear. I have some early beans starting to turn. A nice inch of rain sure would help the later beans. If not they might just be BBs. Been doing some field tiling on some ground that I didn’t get planted this spring. It still amazes me how it can be dry on the surface, but 3 feet down it can be mud with a hint of water.

Dean Shields, Murphysboro, Jackson County: The weather has been mostly on the dry side with no rain to speak of. Some corn is being harvested. Beans are coming along pretty well, but we need some rain. The heat took its toll on the beans. The pigweeds are still growing very well. Where did they all come from? Have a safe harvest. Ken Taake, Ullin, Pulaski County: It has been another dry week here in Pulaski County. Although the temperatures did turn slightly cooler, the lack of moisture is really starting to show on the crops. Soybeans, especially, are showing the lack of rainfall. Corn harvest is getting close. I know of at least one area farmer who started shelling corn this week. I heard his moisture was somewhere in the mid to low 20s. We hope to start shelling corn late next week. I haven’t heard of any yields yet, but the corn is doing pretty well. Please take time and have a safe week.

Livestock economic impact shared with Ogle County board

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

BY CHRIS ANDERSON FarmWeek

Beef, pork and dairy producers in Ogle County contribute as much as $2.9 million dollars in taxes to pay for roads, bridges and other county services. Statistics from a 2012 University of Illinois study also point to county livestock producers directly providing personal income of $43.9 million. Thanks to a joint effort by Ogle County Farm Bureau and the Ogle County Board, county leaders know those numbers and what they mean to county residents. Last week, a reactivated county board ag advisory committee hosted more than half of the Ogle County Board’s 24 members for an informational livestock siting meeting on Ronnie Snodgrass’ dairy farm near Oregon. “Last fall, we knew there would be tur nover on the county board. So, we met with them,” said Brian Duncan, Ogle County Far m Bureau president. “The ag advisory committee had become inactive. The board chairman (Kim Gouker of Byron) said members needed agriculture information as Ogle is a major ag county.” The ag advisory committee consists of Duncan and Farm Bureau vice president Keith Poole of Polo as well as three county board members. Committee members decided on priority topics for the year – livestock facility siting, road postings/weight limits and rural residential zoning. “The committee provides the perfect way for us to work w i t h F a r m B u r e a u ,” s a i d Gouker, who has served on the county board since 1996. “When I first served on the board, several members had farm experience. Now only three do. That makes it all the m o r e i m p o r t a n t f o r Fa r m

Ogle County dairyman Ronnie Snodgrass explains how he cares for his Jersey cow herd to Ogle County Board members. The tour was part of an activity organized by the county board ag advisory committee com-

Bureau to keep us informed.” Jim Fraley, Illinois Far m B u r e a u l ive s t o ck p r o g r a m director, and Nic Anderson, Illinois Livestock Development G r o u p l i ve s t o c k b u s i n e s s developer, outlined the importance of livestock production t o t h e c o u n t y. T h e y a l s o explained the county’s role in siting livestock facilities under the Illinois Livestock Management Facility Act. The Illinois Department of Agriculture oversees the law, providing uniform statewide siting rules. County boards, at their discretion, may request a public information hearing for proposed facilities containing more than 1,000 animal units. “The information was well r e c e i v e d . We w e r e r e a l l y pleased with the meeting,” said Duncan. “We haven’t had any major livestock siting problems i n t h e c o u n t y. T h i s i s o u r opportunity to educate and

serve as a resource and agriculture advocate to the county board.

prised of three county board members and Ogle County Farm Bureau President Brian Duncan and vice president Keith Poole. (Photo by Jim Fraley)

“It’s a mutually beneficial relationship. County board members want to serve resi-

d e n t s. O u r r o l e a s c o u n t y Farm Bureau members is to help them.”

Anhydrous equipment workshops scheduled

Farmers who own their own toolbar for anhydrous ammonia application may be interested in the upcoming workshops on proper equipment installation and maintenance. Sponsors are the Illinois Department of Agriculture (IDOA), Illinois Fertilizer and Chemical Association (IFCA) and equipment manufacturers. Each workshop will start at 9:30 a.m. and end at noon. The dates and locations are: Sept. 18, Rock Falls Days Inn, Rock Falls; Sept. 19,

Asmark Agricenter, Bloomington; and Sept. 20, KC Hall, Teutopolis. A special focus will address improper installation that causes quick couplers on tool bars to fail. Registration is not required and there is no fee. If you need more information, please call IDOA at 217-782-3817 and ask for the anhydrous equipment workshop or IFCA at 309827-2774.

The Illinois Buffer Partnership will host a field day, starting at 1 p.m. Sept. 21 near Hoopeston, Vermilion County. Alan and Marge Zawarus used a variety of plants to minimize wind erosion and serve as food for humans and wildlife. For more infor mation, contact Debbie Fluegel of Trees Forever at 309-613-0095 or dfluegel@treesforver.org.

Trees Forever is marking 15 years of water quality efforts in Illinois. Around the state, nearly 200 buffers have been installed through the Illinois Buffer Partnership program. Applications for the 2014 program will be available Sept. 1. Landowners and communities may apply for up to $2,000 in cost-share funding to install eligible conservation practices aimed at improving water quality.

Illinois Buffer Partnership slates field day


PRODUCTION

FarmWeek Page 8 Monday, September 9, 2013

Latest yield estimates provide clearer view of 2013 BY CHRIS ANDERSON FarmWeek

Farmers counting kernels and pods under sweltering conditions the last two weeks saw no palm tree-lined oases in the middle of Midwestern corn and soybean fields. Instead, they got a clear view of the looming harvest – record corn yields and heatdiminished soybean yields. Allendale Inc., the McHenry-based market strategy and analysis firm, reported its 24th nationwide producer yield survey results provided by farmers scouting fields in 34 states. The survey found an average corn yield of 153.4 bushels per acre versus 154.4 bushels reported by USDA in its Aug. 12 report. Soybean yields were estimated to average 39 bushels per acre, well below the USDA August estimate of 42.6 bushels. Closer to home, survey participants estimated Illinois corn yields at 173 bushels per acre and soybeans at 44 bushels.

“If we produce the average corn yield, production will total 13.676 billion bushels. That’s still a record crop and the highest production in five years, but it’s 87 million bushels lower than the USDA estimate,” said Rich Nelson, Allendale director of research. Soybean production from the Allendale survey was estimated at 2.98 billion bushels, sharply lower than the USDA August estimate of 3.255 billion bushels. Nelson said the production estimate represents the lowest in five years. It would also fall below last year’s drought-damaged national production of 3.01 billion bushels. The survey from Aug. 19-30 covered the broadest geographic area since it began 24 years ago. Nelson noted some of the worst yields were discovered in southeastern and central Iowa where dry conditions significantly impacted plants. The Allendale survey indicated central Iowa corn could yield 134 bushels per acre with

soybeans at 33 bushels. In comparison, the state average was estimated at 157 bushels per acre of corn and 39 bushels per acre for soybeans. “Based on a frost-free date of Oct. 1, we found 80 percent of the corn and 85 percent of soybeans will be mature and safe from any early frost damage,” Nelson noted. In a more concentrated look at potential yields, Soy Capital Ag Services reported an estimated McLean County corn yield of 192.1 bushels per acre based on 1,630 samples from 163 locations. That number would eclipse the five-year county average by 11.9 bushels per acre. Soybean yields were not estimated. “We were not shocked,” said Amy Russell, Soy Capital farm and agronomic research manager. “We were expecting 200bushel yields on most farms.” The yield survey further found record plant populations of 33,230 plants per acre. A declining number of samples – 10.4 percent – came from corn-on-corn fields. Those

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fields showed no yield penalty due to lack of weather stress early in the season and the high quality of farms on which the corn was planted, said Russell.

Stronger soybean prices possible?

Given the latest yield estito require price rationing. mates, stronger soybean prices “Under such a pattern, prices could appear on the near-term would be expected to peak very horizon. early in the marketing year to “We may be scrambling to fill discourage consumption, and the soybean supply pipeline. It decline as the year progresses, could be similar to 2003 when particularly if the South Ameriwe had a late summer drought,” can crop is large again in 2014,” said Rich Nelson, Allendale Inc. said Good. director of research. “We could USDA estimates the average have a severe supply problem farm price for 2013-14 soybeans worldwide for three months. could range from $10.35 to The difference now is that South $12.35 per bushel, compared to America has sharply expanded last year’s average of $14.40 per production and could produce a bushel. record crop.” Average corn Allendale’s farm prices are FarmWeekNow.com yield survey estimated at showed nation- Check out what market ana- $4.50 to $5.30 per al soybean pro- lysts are saying about short- bushel versus an duction could term soybean price prospects average of $7 per total 2.98 bilbushel last year. at FarmWeekNow.com. lion bushels – While adverse the lowest in five years and August weather conditions lowbelow last year’s drought-affectered yield and production estied 3.01 billion bushels. mates for corn, price rationing Darrel Good, University of does not appear likely, Good Illinois agricultural economist, said. noted that soybean prices rose “At this juncture, the 2013 sharply during the last month corn crop is expected to be with the market beginning to large enough that rationing conreflect a short-crop pattern simi- sumption during the year ahead lar to last year. will not be required,” Good Good said if production noted. “The average farm price nears the USDA projection of will likely be higher than 3.176 billion bushels and expected a month ago, but a year-ending stocks can be sharp increase in prices from reduced 4 percent, total procurrent levels to discourage duction would only have to consumption is probably not dip below 3.16 billion bushels needed.” — Chris Anderson

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“We could have seen higher yields if it had rained in August. The positive aspect is that we have bushels to sell. It’s the complete opposite of last year,” Russell concluded.

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FROM THE COUNTIES

Page 9 Monday, September 9, 2013 FarmWeek

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OND — Farm Bureau will sponsor a crop tour at 8:30 a.m. Sept. 17 at the Farm Bureau office. Call the Farm Bureau office at 664-3100 to register or for more information. AYETTE — Farm Bureau will sponsor a crop tour beginning at 8:30 a.m. Thursday at the Vandalia Country Club. Dinner will be served at 6:30 p.m. at the Farm Bureau office. Cost is $5. Call the Farm Bureau office at 283-3276 or a Farm Bureau director for tickets or more information. ANKAKEE — Young Leaders will sponsor a cookout at 3:30 p.m. Saturday at the home of Clay and Alyssa

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Abbott. Farm Bureau members age 35 and younger with an interest in agriculture are welcome to attend. Call the Farm Bureau office at 932-7471 to register or for more information by Wednesday. ASALLE — Farm Bureau will host a seed plot day at 5:30 p.m. Tuesday one-half mile north of Route 6 at the corner of East 12th Rd and 2950th Rd. Todd Zehr, Soil-Biotics, will be the speaker. Members will receive two free tickets. Call the Farm Bureau office for tickets or more information. EE — Farm Bureau will offer members slow moving vehicle emblems for

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U of I scientists crack case with sleuthing, discoveries BY KAY SHIPMAN FarmWeek

The miscanthus mystery “basically was an open book” and switchgrass wasn’t much better when University of Illinois plant pathologists launched an investigation. Their case? Finding diseases that might rob yields from miscanthus and switchgrass crops and the strategies to control them. Their tactic? Applying boot leather in fields. Carl Bradley, U of I plant pathologist, reported he and his fellow scientists didn’t know what viruses infect switchgrass or miscanthus, so they created a new method to find unknown diseases. He discussed his research at the recent Bioenergy Feedstocks Symposium in Urbana. The research is important as farmers grow more acres of switchgrass, miscanthus and other biomass crops. Not only did the plant pathologists search for plant diseases and potential management strategies, but they also searched for the insect vectors that transmit the diseases. “In essence, we didn’t have to know,” Bradley said of the search for unknown viruses. “We identified a brand new virus in switchgrass and found it everywhere.” The U of I scientists named their discovery, switchgrass mosaic virus. They also found that virus in miscanthus. “Apparently this virus has a wide host range,” Bradley added. To determine what insect or insects might spread the virus, the scientists investigated leafhoppers and found three different leafhoppers in infected fields. They brought the leafhoppers back, placed them in cages with non-infected switchgrass and learned which ones resulted in infected plants. The scientists also searched for fungal diseases in switchgrass and miscanthus, which

had few reported diseases. The researchers looked for aboveground symptoms in leaves and stems. After finding and obtaining pathogens, the scientists then inoculated greenhouse plants with the pathogens to see if the symptoms mirrored those in the field, Bradley explained. They identified a number of fungal pathogens, such as rust, smut and anthracnose, that impacted switchgrass, especially ones that could reduce yields, he said. Anthracnose was prevalent and severe in some cases, Bradley noted. Medium to high levels of infestation reduced switchgrass biomass production by as much as 40 percent. Bradley reported switchgrass cultivars seem more susceptible than others. Many have resistant genes that could be used to produce highly resistant switchgrass, he said. Fungal diseases, including blight, were detected in several miscanthus fields. One Kentucky field had a severe infestation, but researchers could not determine what caused that local severity and speculated it might be a different strain of the disease, according to Bradley. To discover management strategies, Bradley used greenhouse experiments to test five fungicide active ingredients registered for use on most commonly grown crops. “Unfortunately, none of the fungicides protected biomass production,” he reported. The plant pathologist questioned the future use of fungicides on biomass crops because it would be difficult to penetrate a heavy canopy with aerial applications. “We have a lot of questions for management. We may need to look deeper for resistance” in switchgrass, Bradley said. “We didn’t see as many diseases in miscanthus, but the potential is there.”

“buy one, get one free” pricing Sept. 16-20 during the National Farm Safety and Health Week at the Farm Bureau office. • Farm Bureau will co-host a farmer appreciation day from 11 a.m. to 2 p.m. Sept. 21 at Culvers in Dixon and Rock Falls. Agriculture in the Classroom will provide children’s activities. Culvers will donate 10 percent of sales that day to Lee and Whiteside Agriculture in the Classroom programs. ACON — Farm Bureau will sponsor an oil recycling day 9 to 11 a.m. Friday at Macon Evergreen FS, and 1 to 3 p.m. at Maroa Evergreen FS. Call the Farm Bureau office at 877-2436 for more information. ADISON — The Young Farmers Committee will sponsor a CPR class from 6 to 9 p.m. Sept. 18 in the Farm Bureau auditorium. Cost is $10. Call the Farm Bureau office at 656-5191 for reservations by Wednesday. ERCER — Farm Bureau will sponsor a state legislative roundtable at 6 p.m. Tuesday at the Reynolds American Legion. Kevin Semlow, Illinois Farm Bureau director of state legislation, will be the speaker. Call the Farm

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Bureau office at 582-5116 for more information. ONTGOMERY — Prime Timers will meet at noon Sept. 18 at the Farm Bureau building. Scrap Iron and Gold will perform. Cost is $9. Call 532-6171 for reservations or more information. ERRY — Young Leader Committee members will meet at 8 p.m. Monday at the Farm Bureau office. Call the Farm Bureau office at 357-9355 for more information. OCK ISLAND — Farm Bureau will sponsor a market outlook seminar at 6:15 Thursday at the Lavender Crest Winery, Colona. Bill Tierney, AgResource Company chief economist, will be the speaker. Cost is $30. T. CLAIR — Farm Bureau will sponsor the Mon-Clair Corn Growers test plot tour at 6 p.m. Wednesday at Greg Guenther’s farm. Dinner and program will follow at 7 p.m. at the Farm Bureau office. • The Young Farmers Committee will sponsor a shred day from 9 a.m. to noon Saturday at the Farm Bureau office. ASHINGTON — Young Leaders Committee members will meet at

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7:30 p.m. Thursday at the Addieville Eagle’s Nest. Call the Farm Bureau office at 327-3081 for more information. • Young Leaders will sponsor a pedal tractor pull at 12:30 p.m. Saturday at the Okawville Wheat Festival. Call the Farm Bureau office at 327-3081 for more information. • The Issue Management Committee will sponsor a policy development tool shed meeting at 11 a.m. Sept. 19 at Maple Hill Dairy near Ashley. Call the Farm Bureau office at 327-3081 to register by Friday. HITESIDE — Farm Bureau will co-host a farmer appreciation day from 11 a.m. to 2 p.m. Sept. 21 at Culvers in Dixon and Rock Falls. Agriculture in the Classroom will provide children’s activities. Culvers will donate 10 percent of sales that day to Lee and Whiteside Agriculture in the Classroom programs. ILL — Farm Bureau will host an open house from 11 a.m. to 4 p.m. Sunday at John Kiefner’s Manhattan farm. Educational presentations, light refreshments and a hayrack ride will be included. Call 545-8367 for more information.

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PROFITABILITY

FarmWeek Page 10 Monday, September 9, 2013

Demand from China: Is it fact or fiction?

It is commonly assumed that China’s rapid economic growth has resulted in its having an increased demand for and consumption of world commodities, and that this increased consumption by China has Kel Kelly driven up global commodity prices. However, our research and analysis shows that this is a false assumption. In truth, China’s swift growth comes

from its rapidly increasing production of goods, with the result that China now produces and supplies more agricultural commodities than most other countries. It consumes mostly its own supply of commodities, not the remaining world supply. It is, in fact, a net contributor to world commodity supply, not a net taker. As a result, it has contributed to lower, not higher, world commodity prices. As a minority purchaser of commodities from markets outside its own country, China has a minimal impact on world prices. Total purchases of commodities by all other market participants in non-Chi-

nese markets is greater than China’s and thus has a greater effect on prices than does China’s purchases in those markets. For China to dominate U.S. commodity prices, it would have to be a significant commodities purchaser. But that is not the case. At the height of commodity prices in 2008, China purchased only 10.8 percent of our exports, which constitutes a minority share of our annual production. China purchases only a third of our soybean production. The entire amount traded on the market, not just the amount exported, is what plays into price determination.

China doesn’t even essentially buy many volatile commodities, including corn, wheat, oats and rice. Additionally, not only are there generally no statistical relationships between commodity exports and prices, but exports themselves have mostly not increased in the last 10 years — just their prices. The “demand from China” theory fails to explain how all commodities collapsed together during the 2008 financial crisis, while Chinese purchases did not, and why most commodity prices tend to move in sync, even though they have different fundamentals. These phenomena are

Illinois just posted its third driest August on record. Portions of Mercer, Henderson, Hancock and Adams counties reached severe drought status. Most central Illinois counties entered moderate drought conditions. But what’s the future hold for harvest weather? The question remains top of mind for many farmers, including Ron Haase of Gilman. The Cropwatcher posed the query to FarmWeek readers recently as he compared current

crop status to 2009. “Crops are at the same stages of development as they were at this time in 2009. This is also the same point when the rains started to become plentiful that year,” Haase said. Jim Angel, Illinois State Water Survey climatologist, vividly recalled 2009 as “probably one of the worst years we had from beginning to end.” Exceptionally wet and cool conditions ruled weather patterns from March through August. Severe planting delays occurred. A warm, dry Sep-

tember gave way to an excessively wet October. By early December, 15 percent of Illinois corn still stood in fields. “The National Weather Service is calling for aboveaverage precipitation this fall. I haven’t seen anything that would convince me that could happen,” said Angel. He noted that the next eight to 14 days will remain warm and dry in most parts of Illinois. Those conditions will

encourage crop maturity and enable farmers to start harvest, Angel added. The climatologist further stated no indication of an early frost exists. He suggested that cool nights in August prompted worries that late-planted and slow-maturing crops might be susceptible to early frost damage. Angel reported statewide August precipitation averaged 1.38 inches – 2.2 inches below

BY KEL KELLY

explained by the existence of a new force in the commodity markets that affects commodity purchases on a much larger scale than does China: namely, Wall Street entities which are now responsible for the majority of all spending, purchases and trades in the commodity futures markets. These, in turn, bid up cash prices through arbitrage. It is not physical “demand from China,” but instead monetary demand from Wall Street that drives up prices.

Kel Kelly is GROWMARK’s economic and market research manager. His email address is kkelly@growmark.com.

What’s the future hold for dry harvest conditions? BY CHRIS ANDERSON

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) $33.61-$48.00 $40.77 40 lbs. (cash) $49.00-$60.00 $56.23 Recipts

This Week 85,529 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 95,243

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change $84.78 $86.10 -$1.32 $62.74 $63.71 -$0.98

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

This week $122.00 $122.00

Prev. week $123.46 $123.66

Change -$1.46 -$1.66

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 $156.36 $155.32 $1.04

Lamb prices Slaughter Prices — Negotiated, Live, wooled and shorn 100-155 lbs. for 110.62-138 $/cwt. (wtd. ave. 118.46)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8/29/2013 1.4 36.4 17.4 8/22/2013 2.5 31.3 12.1 Last year 15.5 25.4 8.6 Season total 1312.1 340.5 695.4 Previous season total 1366.0 258.3 1499.1 USDA projected total 1315 1100 715 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Farming ranks sixth in Gallup poll

Some day, farmers could be chanting, “We’re No. 1,” given results of the latest Gallup Work and Education poll. Farming and agriculture ranked sixth in the public image poll behind the banking, travel, real estate, airline and auto industries. Farm’s ranking improved by 10 points. Health care rated last in the poll. Survey results further revealed that 60 percent of people polled gave agriculture a positive rating, while 18 percent provided a negative rating. Results were based on a random sample of 2,013 U.S. adults. The annual poll, conducted since 2001, asks Americans to rate 25 business sectors based on a five-point scale.

Milk prices show improvement

The Class III price for milk adjusted to 3.5 percent butterfat for the month of August was announced at $17.91 per hundredweight. This marks a 53-cent gain over the lower prices seen in the previous month. Nationwide production continues to decline on a seasonal basis heading into fall, but the year-to-year changes show this year’s production is running ahead of last year. Illinois dairy farmers started chopping corn silage last week in earnest. The quality will certainly be better this year, given last year’s bout with very hot and dry weather causing some pockets of aflatoxin to show up in the corn.

the monthly 30-year average. August temperatures statewide hit 73.1 degrees, just 0.4 of a degree below average. Belowaverage temperatures during the first half of the month canceled out above-average temperatures during the second half. Statewide rainfall for June through August averaged 9.93 inches, 1.92 inches below average. Fifty-seven percent of the state’s corn was rated good to excellent in the latest Illinois Department of Agriculture report. Slightly more than half the state’s soybeans were rated good to excellent. Only 46 percent of corn had dented, compared to the five-year average of 69 percent. Similarly, 4 percent of soybeans were turning yellow versus the five-year average of 20 percent.


PROFITABILITY

Page 11 Monday, September 9, 2013 FarmWeek

Corn Strategy

CASH STRATEGIST

Brazilian exports making inroads

The world is seeing the fruits of last spring’s large Brazilian crops. The Argentine crops were not as large comparatively, but were still good. Brazilian soybean exports got off to a slow start this year because of the late development of the crop, late harvest and delay in getting product to ports. But when those supplies became readily available, shipments exploded. And they continue strong today. It should taper faster than it did in 2011 because of the aggressive summer pace and the emphasis on shipping corn. But they should still be shipping modest quantities in early 2014 like they were at the

beginning of 2012. If early planting goes well this year, new-crop supplies will enter the world pipeline early like they did in 2012. But it’s the inroads Brazil has made with corn in the export trade that may be most shocking to many. Last year’s exports for their marketing year starting February 1 hit 22.3 million metric tons (mmt). For the first time, the U.S. was not the world’s largest corn exporter. With an even bigger crop this year — last estimated up another 7.5 mmt from the previous year, one should expect large exports to continue into early 2014, outpacing last year. With only 8 mmt exported through August, they should ship another 19 to 20 mmt by February 1. That could get the U.S. export program off to a slow start again.

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ü2013 crop: The ease with which prices decline continues to illustrate just how weak this market is. Use rallies to $4.70 on December futures to make needed sales. After next week’s report, we might recommend adding to them, given downside risk. ü2014 crop: Given the increasingly negative long-term prognosis for the corn market, we might recommend making an initial small sale after the September USDA report. vFundamentals: Even though the ultimate size of this crop is still not “set in stone,” it’s becoming increasingly apparent that it will be a decent crop. For those hoping acreage is revised significantly, the biggest change in recent years was the 1.1 million acre reduction in 2008. Yield may fall somewhat from the number the USDA forecasts on this report, but production will still be large enough, even with smaller acreage, to keep ending stocks from dropping much below 1.5 billion bushels this year.

Cents per bu.

Soybean Strategy

ü2013 crop: So far, November soybeans have held critical short-term support at $13.31. As long as that holds, there’s a chance of seeing a new high. Hold off sales for now, but use a rally over $14.50 for catch up sales. We may use a push to a new high to add sales, too. Check the Hotline frequently. ü2014 crop: The change in the soybean/corn price ratio will stimulate plantings in South America, and likely in the U.S. next spring. We don’t have a specific price in mind, but are considering initiating 2014 crop sales. vFundamentals: Uncertainty about the size of this year’s soybean crop may persist into the October 11 USDA report. Still, the September report will offer a benchmark for estimating production potential going forward. And by the October report, there should be enough yield reports available to help define the size of this year’s crop. Plantings are about to get under way in South America, and so far,

there’s no reason not to expect a big crop.

Wheat Strategy

ü2013 crop: The action in wheat prices, no matter which class of wheat, continues to suggest the market has not yet reached a long-term low. But for now, the trend may have shifted sideways. Continue to use rallies to $6.75 for catch up sales. Plan to add to sales if Chicago December gets to $6.90. If wheat is farm-stored, consider a winter/spring HTA. ü2014 crop: Given the moisture improvement in the Southern Plains, we plan to look for initial pricing opportu-

nities on fall/winter strength. vFundamentals: Demand for wheat continues to be good, for both the U.S. and other exporting countries around the world. The problem for the market is that the supply exporting countries have to sell is as large as the demand base. Hence, prices aren’t able to sustain rallies for any length of time. Looking ahead to the planting of the new winter crops around the world this year, there doesn’t appear to be any reason to have major concern for the new crop either.


PERSPECTIVES

FarmWeek Page 12 Monday, September 9, 2013

Factors lending strength to markets

Do food labels need warning labels?

T

he purpose of a food label is to help consumers make smart decisions about what to buy and eat. But what if these labels confused people instead of informed them? Or worse yet, what if labels actually misled consumers? That’s the problem with legislation introduced in Congress earlier this year to require special labels for food with genetically modified ingredients. Offered by Sen. Barbara Boxer, D-Calif., and Rep. Peter DeFazio, D-Ore., the bill threatens to hoodwink the public. It would fool people into worrying that perfectly safe food poses a health hazard. Suddenly, our food labels would need warning labels: “Believe the contents of this label at your CAROL KAISER own risk.” The dangers of deceptive labeling aren’t a speculative assertion, but rather the main point of a recent paper by Juanjuan Zhang, a marketing professor at the Massachusetts Institute of Technology. “Mandatory disclosure of GMOs in food products lowers consumers’ perceived GMO safety,” she wrote in “Policy and Inference: The Case of Product Labeling.” Zhang’s research revealed that the mere act of labeling food that contains GMOs is deceptive. It causes consumers to suspect that GMOs are dangerous, even though the safety of biotech food is beyond reasonable doubt, as organizations ranging from the American Medical Association to the World Health Organization have determined. To arrive at her conclusion, Zhang conducted a clever experiment. She approached 200 people in several settings: in grocery stores, at a college dining hall and outside a food truck which serves organic fare. Then she separated participants into two groups. The first received a statement that said the U.S. government does not require labels on food with GMO ingredients. The second saw a statement about proposals to require special labels for food with GMO ingredients. Then Zhang asked both groups to rate the safety of GMOs on a scale of 1 (“totally unsafe”) to 5 (“totally safe”). Her observations were striking. People in the first group had a favorable view of GMOs. They gave GMOs a mark of 3.62 — considerably more safe than unsafe. People in the second group, whose experience was meant to approximate reading a label on a food package, rated GMOs at 2.65 — in other words, substantially lower than the first group.

The different responses are entirely logical. Consumers assume if GMOs are safe, there’s no need to label them. If they see labels, however, they imagine that there must be something unsavory about GMOs. Supporters of the “just label it” movement like to talk about “the right to know.” Yet Zhang’s scholarship shows that consumer behavior is more complicated than a political slogan. Labels possess the power to mislead. That means our lawmakers must mandate them sparingly, and not just because a few special interest groups want the federal government to help them obtain a competitive advantage in the food market. If Congress fails to resist the politicization of food labels, our food labels no longer will carry basic information in a simple format. Instead, they will begin to resemble long and complicated legal disclaimers — the kind that nobody reads, let alone comprehends. Here are a couple of alternative mottos: Less is more. Keep it simple. These should be guiding principles behind the rules of food labeling. I’m not just a food producer. I’m also a mother and a grandmother. When I shop at the store and decide what to put on the dinner table for my family, I depend on accurate and reliable labels. I don’t want labels that push me away from safe and healthy food. I trust scientists and food experts: GMOs are safe. They are part of a proven technology and have become a conventional part of agriculture. We eat them every day. I also appreciate that they’re environmentally friendly and highly sustainable, helping us grow more food on less land. Despite all this, some people really do want to avoid GMOs. The good news for them is that they already have an option: They can buy food that’s labeled “organic.” This way, they can be certain that their food contains no GMO ingredients. Congress should reject this scheme to contaminate our food labels with distorted information. Maybe copies of the BoxerDeFazio legislation should carry a special label for lawmakers: Caveat emptor, or “Let the buyer beware.”

Carol Keiser owns and operates cattle feeding operations in Illinois, Kansas and Nebraska. She volunteers as a Truth About Trade & Technology board member {truthabouttrade.org).

There is an old Wall Street adage that stock markets often climb a “wall of worry.” Essentially, this means stock prices can move up over time even when faced with challenging events that would otherwise suggest caution and lead to lower prices. While investors can always find something to worry about, the list of issues over the last year seemed particularly ominous. Most notably, we had debt-ceiling issues, year-end tax increases, government spending cuts (also known as sequestraDEREK tion), continued VOGLER instability in many areas across the globe, an ongoing European Credit Crisis, concerns about a slowdown in China, questions about the longevity of the quantitative easing program and the list goes on. Combined with the constant barrage of economic measures reported by the government, how could anyone ever commit money to the equity market? This definitely doesn’t sound like the mixture for good stock returns, but U.S. equity prices as well as many other international markets have been soaring. The Dow Jones Industrials average is up 19.9 percent yearto-date through the end of July, while the Standard & Poor’s 500 Index is up 19.6 percent. Part of this strength could be attributable to the Federal Reserve. As policies have forced down interest rates, fixed income investments have become very unappealing. With few safe choices for generating any kind of significant return, investors have poured into the stock market. Another reason for the strength is gains in corporate earnings over the last couple years. As companies have kept hiring down, increased efficiencies and cut fat, they have posted some pretty good results. Since the real value of a company is related to the earnings it generates, this explanation is more plausible for many market purists. It also supports continued strength in prices so long as earnings maintain their upward trajectory. However, we have some concerns about the sustainability of this trend given the current slow growth economy in the U.S. Because companies have been doing whatever possible to wring out efficiencies, the question becomes: How much further they can go? Unfortunately, in many industries we are seeing little, if any, real growth in sales even as earnings are trending higher. Our slow-growing economy has not yet created enough broad-based strength to lead to sales growth outside of certain pockets, such as housing. In years past, some of the emerging market economies have helped support sales growth for domestic companies as they provided essential

new markets for their products. However, the trend we are seeing today is a slowdown in many of these areas as well. Even the darlings of the emerging markets, the BRIC countries of Brazil, Russia, India and China, have either slowed significantly or are warning of tougher times ahead. So the question remains: Where will the sales that will continue to propel earnings and lead to higher stock prices from the current levels come from? Some government officials believe existing policies eventually will lead to stronger economic activity, which will lead to a higher level of sales. The thought is that growth will lead to higher employment, spurring spending, the need for more workers, and the cycle would continue. Federal Reserve officials seem to be banking on the wealth effect leading to stronger spending or continued low interest rates, which would encourage consumers to buy more homes or increase their credit to spur spending on other goods. We hope some or all of these theories prove correct, but the current data just isn’t supportive. Growth in the U.S. gross domestic product for the second quarter of 2013 came in at 1.7 percent, and many economists expect little change in that rate for the remainder of the year. So, it appears the recovery that we are experiencing is real, but it is of such a low rate that it’s hard to imagine it’s the beginning of something more meaningful at this point. On top of this slow growth, recent comments by Ben Bernanke and other Fed officials, suggest that the current Quantitative Easing (QE) program will begin to wind down this fall and likely be complete sometime in mid-2014. We hope a strong rebound in employment precedes this move, but we have our doubts. Even the strength in housing appears very dependent on the QE program and other interest rate policies. Once this goes away, the economy will have to stand on its own. This could be difficult given the global woes and the lack of catalysts here in the U.S. While there is always risk of posting another concern on the “wall of worry,” we are skeptical that stocks can continue to rise at the current pace without some real, sustainable economic growth. Yes, equity prices are predictive and seem to forecast better times ahead. But we wonder what will actually create those better times given the domestic and international economic challenges. There is no reason to believe a large correction is imminent, especially since interest rates remain low and fixed investments offer little appeal. But a quarter or two of flat returns or even a moderate pullback would definitely not come as a surprise. Derek Vogler is a vice president of investments at COUNTRY Financial.


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