IFB Infrastructure Study Tour participants share impressions of major ports in four states. pages 4-5
A new strategic partnership, FARM Illinois, has roots in the Vision for Illinois Ag effort. page 8
Popcorn aficionados can indulge heavily in their favorite snack as yields appear excellent. page 10
House passes bill blocking ‘waters of the U.S.’ rule Monday, September 15, 2014
BY DEANA STROISCH FarmWeek
Periodicals: Time Valued
Calling it an overreach by the Environmental Protection Agency (EPA), the U.S. House of Representatives last week voted 262-152 to temporarily block a proposed rule redefining “waters of the U.S.” The vote approving HR 5078, the Waters of the U.S. Regulatory Overreach Protection Act, came in the midst of aggressive lobbying efforts against the proposed rule. Illinois Farm Bureau members voiced their strong opposition to the proposal — from their farms in Illinois to Congressional offices in Washington, Richard Guebert Jr. D.C. Hundreds of Illinois Farm Bureau members responded to a “call to action,” urging members of Congress to support the measure. The calls were made as part of a national “Ditch the Rule” Day of Action, also initiated by IFB. A dozen members attending IFB’s Leaders to Washington trip met with their representatives to urge opposition as well. IFB President Richard Guebert Jr. said IFB was “extremely
Two sections Volume 42, No. 37
pleased” the House passed the bill. “HR 5078 will help protect farmers and landowners from this federal land grab, overregulation and red tape,” Guebert said. “We urge farmers and landowners to continue filing comments with the U.S. EPA and ask that the U.S. Senate follow the House of Representatives’ lead in passing the bill.” But challenges remain. In a statement, White House officials last week said they strongly oppose the bill. The bill, officials said, would “derail current efforts to clarify the scope of the Clean Water Act, hamstring future regulatory efforts and create significant ambiguity regarding existing regulations and guidance,” among other things. Senior advisers to President Barack Obama would recommend he veto the bill, according to the statement. The bill would block the proposed rule, issued by the EPA and Army Corps of Engineers, for two years. Under the bill, the agencies must consult with state and local officials, and draft an agreeable proposal, which must be submitted to Congress within two years. Speaking on the House floor before the vote, Rep. Bill Enyart, D-Belleville, said his constituents are worried about new waters that could fall under
federal jurisdiction under the proposed rule. He also voiced concern about the lack of scientific analysis. “Our farmers, our landowners, our communities and our country’s waterways deserve better planning than this,” he said. “They deserve detailed studies and thoughtful execution. Our constituents sent us to Washington to keep their best interests in mind, not to pile on more red
tape in a blanket fashion.” Rep. Rodney Davis, R-Taylorville, said farmers are particularly concerned that the new rule could add permitting requirements. “That’s right, the EPA, the same agency that inexplicably released the personal and private information of livestock producers is now telling farmers: ‘Just trust us when it comes to this new rule,’” Davis said.
HARVEST UNDER WAY
“There’s a trust gap between EPA and the agricultural community. And one of my priorities is trying to bridge that gap. Instead of this proposed rule, the EPA and Corps of Engineers should engage with states and local governments to produce a more common sense approach to regulating our waterways.” Please see page 5 to read more about the proposed rule.
Truck driver Zack Ross, standing left, provides a harvest update to Dusty Rich, a seed account manager. Danny Puccetti of Taylorville owns the field, which produced yields exceeding 200 bushels per acre. Moisture levels in the 107-day corn averaged 25 percent. Pete Lancaster drives the tractor. (Photo by Ken Kashian)
IFB concerned about hydraulic fracturing rules BY KAY SHIPMAN FarmWeek
Illinois Farm Bureau shared its concerns about proposed hydraulic fracturing rules with a state bipartisan legislative oversight committee. The Illinois Department of Natural Resources (IDNR) released revised rules to implement a high-volume, horizontal fracturing law passed by the General Assembly in 2013. The state Joint Committee on Administrative Rules (JCAR) reviews agency rules prior to their adoption. “We have communicated our concerns with the rules proposed by IDNR to the
members of JCAR,” said Bill Bodine, IFB associate director of state legislation. “We have identified a number of instances when the proposed rules don’t adhere to the act passed by the General Assembly.” The new law established rules for well construction and casing standards. It specified numerous environmental regulations, including requirements for setbacks and water testing along with waste management procedures and other provisions designed to protect ground and surface water from contamination during the drilling operation and afterward.
IDNR Director Marc Miller said his staff did a “thoughtful and thorough job” in writing the rules and responding to numerous public comments. “We want to ensure the rules withstand any litigation effort,” Miller said. Miller encouraged the public to read online not only the proposed rules, but also the public comments and IDNR’s responses to them. Visit {dnr.illinois.gov/Oiland Gas/Pages/ PublicHearingTranscriptsAndComm ents.aspx}. See Concerned, page 7
www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, September 15, 2014
STATE MAY PRIVATIZE SHOOTING COMPLEX — The Illinois Department of Natural Resources (IDNR) may hire a concessionaire to operate the state World Shooting and Recreational Complex near Sparta, IDNR Director Marc Miller announced last week. IDNR started the process by requesting business plan ideas. State sites operated by concessionaires remain in state ownership. The shooting complex annually generates about $25 million in local economic impact. The facility has the world’s longest trap line with a 120 trap field extending over 3.5 miles. The facility serves as home of the Amateur Trapshooting Association’s Grand American Trapshooting Championships. It also offers skeet, sporting clays and cowboy action shooting. MENARD ELECTRIC CO-OP LANDS LOAN GUARANTEE — Thanks to $17 million in USDA Rural Utilities Service (RUS) loan guarantees, Menard Electric Cooperative will build or improve 173 miles of line and make other system improvements. The loan amount includes $330,000 for smart grid projects. U.S. Ag Secretary Tom Vilsack said rural electric cooperatives in 15 states received more than $518 million loan guarantees to build or improve more than 5,600 miles of line in rural areas. More than $23 million of the total will be targeted for smart grid improvements. Smart grid technologies, such as automated meter reading and load management automation, allow more efficient control over the use of power to better meet customers’ needs. RUS also administers infrastructure programs that bring broadband, safe drinking water and improved wastewater treatment facilities to rural communities.
YOUNG LEADERS SHAPE THE FUTURE — Getting involved today with Illinois Young Leaders, men and women ages 18 to 35, builds skills and the experience you need to become an industry leader tomorrow. Young Leader programs provide networking opportunities beyond your county and state with the American Farm Bureau Federation Young Farmers & Ranchers Achievement Award, Excellence in Agriculture Award and Discussion Meet. Three national winners this year will have their choice of a 2015 Chevrolet Silverado or a 2015 GMC Sierra pickup, courtesy of GM, and a paid registration to the 2015 Engagement Conference Feb. 13-16 in Nashville, Tenn. Nine national finalists receive a Case IH Farmall tractor, courtesy of Case IH, along with a $2,500 cash prize and $500 in merchandise, courtesy of STIHL. For more information on Young Leader programs and how you can get involved, contact your county Farm Bureau.
(ISSN0197-6680) Vol. 42 No. 37 September 15, 2014 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. © 2014 Illinois Agricultural Association
STAFF Editor Chris Anderson (canderson@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Deana Stroisch (dstroisch@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 (morso@ilfb.org) 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
A delegation from the British-American Parliamentary Group discuss biotech issues on the farm of Dan Kelley, Normal, past chairman of the board and president of GROWMARK Inc. Pictured, left to right, are Stephen Moose, associate professor, University of Illinois; delegation members Stephen Bridges, Simon Kirby, Lord Smith of Finsbury and Jack Westwood; Matt Hynes, GROWMARK seed sales and marketing manager (gesturing) and Kelley. (Photo by Ken Kashian)
Consumer benefits could accelerate acceptance of biotech crops in UK A lack of acceptance of biotech (GM) crop varieties in the United Kingdom continues to be an issue, delaying the implementation of a trade agreement between the U.S. and UK. The two countries currently are negotiating the TransAtlantic Trade and Investment Partnership, which would remove trade barriers and possibly boost U.S. ag exports. Many farmers in both countries favor the use of GM crops to help boost output, and reduce costs and pesticide use. But many consumers in the UK still aren’t sold on the use of GM crops, which have been in use nearly 20 years, according to members of a British-American Parliamentary Group who toured the Illinois ag industry last week. “Most (UK) farmers want it,” Lord Smith of Finsbury, chairman of the Environment Agency in the UK, said of GM crops during a roundtable discussion on the farm of Dan Kelley of Normal, past president of GROWMARK Inc. “It’s certainly the clear view of the (UK) National Farmers Union.” The European Union currently allows the import of about 39 different GM crop products, according to Stephen Bridges, Her Majesty’s General Consul. “We’re on a trajectory of improvement (in terms of biotech acceptance). But (farmers) in the UK are still falling behind,” Bridges said. “You can buy GM foodstuffs in some supermarkets. The issue is (farmers in the UK) can’t grow them.” Smith said the issue generates emotional responses from consumers in the UK, who
BY DANIEL GRANT
don’t always trust government and agriculturalists. “A key thing to getting acceptance (in the UK) is 20 years of evidence of what happened here (in the U.S.),” said Smith, who recommends documentation or studies to show there’s been no adverse effects of GM crops on human health or biodiversity, and to illustrate reductions in runoff and pesticide use. Kelley, an early adopter of biotech varieties, said average corn yields on his farm jumped from about 125 to 200-plus bushels per acre in his 30-plus years of farming, while the cost per bushel and pesticide use declined. “Most people grow GM crops for the yield advantage,” Kelley said. “And, from a health safety standpoint, it’s not an issue. We have an obligation to provide safe food, whether it’s organic or GM.” Tamara Nelsen, Illinois Farm Bureau senior director
of commodities, noted pesticide use declined by an estimated 62 billion pounds since the introduction of Bt corn and cotton. “The reduction of pesticides seems to be an argument lost in this (emotional debate in the UK),” Bridges said. “It’s more about ‘frankenfoods’.” Stephen Moose, associate professor at the Corn Functional Genomics Lab at the University of Illinois, believes biotech traits also boost the sustainability of crop production. “The protein (used in rootworm corn) comes from bacteria from the soil,” he said. “It’s been used as a pesticide for 60 years.” Smith and Bridges believe the issue of biotech acceptance could remain on the backburner in the UK until next year’s election season ends there. After that, they believe Parliament will address the issue.
IAITC seeking farm writers for Chicago area students
Illinois Agriculture in the Classroom (IAITC) is seeking farmer writers to match with Chicago area students, according to Kevin Daugherty, Illinois Farm Bureau education director. Through the Adopt-A-Classroom program, volunteer farm writers and students exchange letters several times a year. Depending on what the farmer and the students want, exchanges may occur every month or at least once each quarter. Writers may include county Farm Bureau committees, farm groups, 4-H clubs or FFA chapters. “Here is your chance to be that one-on-one spokesperson with a group of students, teachers and parents who are curious about what happens on a farm,” Daugherty said. An easy first letter could encourage students to read food labels at home. Suggest they find five items containing corn and five containing soybeans. Have them write back about what they found. For more information about IAITC’s Adopt-A-Classroom program, visit {agintheclassroom.org/TeacherResources/adoptaclass room.shtml}.
USDA boosts record crop estimates; top yields in Illinois Page 3 • Monday, September 15, 2014 • FarmWeek
BY DANIEL GRANT FarmWeek
USDA estimates suggest a tidal wave of grain will inundate the Corn Belt this fall. And leading the surge are record yields in Illinois that look to be the top in the nation. USDA, in its September crop production report, raised its national corn and soybean production estimates 3 percent from August to a record 14.395 billion bushels of corn and 3.913 billion bushels of beans. National average yield estimates now sit at a record 171.7 bushels per acre for corn (up 4.3 bushels from the August estimate) and 46.6 bushels per acre for beans (up 1.2 bushels from last month). Projections indicate the number of corn ears per acre totals the largest on record. “USDA caught the market a little bit by surprise,” Jack Scoville, market analyst with Price Futures Group, said during a teleconference hosted by the
Minneapolis Grain Exchange. “The numbers were negative, at the high end of the trade guess for both corn and soybeans.” Look no further than the Prairie State for those wondering where the big crops are located. Illinois yields were pegged at a record 194 bushels per acre for corn (which would break the current record of 180 bushels harvested in 2004) and 56.3 bushels per acre for beans (which would shatter the current record of 51.5 bushels set in 2010). Both Illinois yield estimates are the highest in the nation. Iowa could have a corn yield average of 185 bushels per acre, while soybean yield averages were pegged at 53 bushels in Nebraska, 52 in Indiana and 51 in Iowa. If realized, Illinois farmers this fall will harvest a record 2.29 billion bushels of corn and 563 million bushels of beans. That would close in on the Illinois Soybean Associa-
Harvest off to slow start; corn standability a concern
Farmers waiting for corn to dry down for harvest should take advantage of the time to scout their fields and develop a harvest plan. Stalk quality and standability could be an issue this fall if harvest delays linger, according to Dennis Bowman, University of Illinois crop systems educator. “With the varieties we have and genetic improvements over the years, we’re kind of getting spoiled (with good crop stands),” Bowman said. “This could be a year that gets tested.” A fair amount of disease pressure, pockets of rootworm outbreaks and large, heavy ears will test stalk strength this harvest, particularly as the season drags on, Bowman noted. “The crop could be prone to any type of wind event,” he said. “Although, all in all, it’s a very good looking crop at this point.” Bowman urged farmers to scout their fields before harvest. “While you’re waiting for things to dry down, you should go into your fields and see how they’re standing, check the moisture levels and make a strategic (harvest) plan,” he said. Jimmy Ayers, a FarmWeek CropWatcher from Sangamon County, said he planted one variety of corn that, as of last week, exhibited 25 to 30 percent stalk damage in one field, while corn in another field just 1.5 miles away was “standing like a tree.” Ayers, as of early last week, harvested about 140 acres of corn at higher moisture levels (29 to 34 percent) to take advantage of early harvest premiums in his area. Some moisture readings were as low as 22 to 24 percent. “We’re picking and choosing where to go, trying to find the dry spots,” Ayers said. Corn harvest as of the first of last week was just 1 percent complete statewide, 5 points behind average. Just 17 percent of the crop was mature last week, well below the five-year average of 36 percent. Yields from early-harvested corn didn’t disappoint some farmers, although Ayers said he lost about 16 bushels per acre from what his yield monitor showed compared to the elevator measurement due to shrinkage. Ayers predicts corn yields in his area could be 30 to 45 bushels above average. Kirk Liefer, a Randolph County Farm Bureau member, started harvest last Monday and said initial yields were about 25 to 30 percent above the actual production history on his farm. Moisture was around 22 percent. “We expected some pretty good corn,” Liefer said. “We think it will be better than last year.” The shift to cooler temperatures and some heavy rainfall last week concern Liefer, though. “So far, stalk quality is good,” he added. “But that is a concern, especially as it gets later in the year.” — Daniel Grant
FarmWeekNow.com
Visit FarmWeekNow.com to listen to Jack Scoville’s analysis of the September crop report.
tion’s goal of producing 600 million bushels of beans in Illinois by 2020. Ending stocks as a result of the big crops were projected to reach 2 billion bushels for corn (the most since 2004-05) and
475 million bushels of beans (the most since 2006-07). Crop price estimates subsequently took a beating. “We could see further downside over time,” Scoville said. “The harvest low tends to come later in a big crop year.” USDA lowered season-average price estimates by 40 cents for corn (to a range of $3.20 to $3.80 per bushel), 35 cents for beans (to a range of $9 to
$11) and 40 cents for wheat (to a range of $5.50 to $6.30). Current economics lead Scoville to believe farmers will store corn and sell some beans this fall. He also believes freight will be tight, which implies a weaker basis in the Midwest. Looking ahead, Scoville predicts the drop in corn prices could lead to a decline in corn plantings in South America.
Industry eyes watching need for temporary grain storage in Illinois BY KAY SHIPMAN FarmWeek
Farmers, grain elevator operators and Illinois Department of Agriculture (IDOA) officials know a large crop looms this fall. Although anticipated, the state’s grain industry hasn’t deluged IDOA’s warehouse bureau with requests for temporary storage. “Only 4 million (bushels of storage) has been applied for so far, not as much as we thought. In talking to the industry, we know we have a bunch coming,” Rick Boyd, warehouse examiner supervisor, told FarmWeek. Boyd handles industry applications for temporary and emergency grain storage. He offered several reasons for a delay in applications. Corn harvest started slowly, and elevators prepared by emptying grain storage. “We’re pretty empty going into harvest this year,” Boyd said.
Some operators may apply later to push back a six-month deadline to begin using an approved temporary storage structure. Temporary storage structures must have a permanent base, hot-spot detectors, rigid sidewalls, a waterproof covering, and aeration fans and ducts. During the last few years, operators applied in advance for temporary storage, especially when harvest came early. The need for additional storage didn’t materialize, and some operators paid charges for unused temporary space, Boyd noted. “Undoubtedly, we’ll have temporary storage,” Boyd said, adding he doubted if a record amount would be used this year. With combines just starting to roll, IDOA officials are preparing to field more requests to temporarily store the bountiful crop. “I anticipate a glut (of requests) late this month,” Boyd said.
The Panama Canal effect
FarmWeek • Page 4 • Monday, September 15, 2014
INFRASTRUCTURE STUDY TOUR 2014
U.S. ports across the country gearing up for bigger vessels
BY DEANA STROISCH FarmWeek
The completion of the Panama Canal expansion won’t bring a “tsunami of trade,” but the benefits will be immediate, said Page Siplon, executive director for Georgia’s Center of Innovation for Logistics. “Frankly a lot of it’s already come,” he told participants of Illinois Farm Bureau’s Infrastructure Study Tour. “The impact of a deeper and wider Panama Canal, as well as the correlated improvements in U.S. ports, is all about continuing the growth we’ve already seen at some of these ports over the years.” From Louisiana to Virginia, port officials and other transportation advocates told Illinois farmers recently they want to dredge nearby waterways — generally to 50 feet — to match the eventual depth of the Panama Canal. The biggest obstacles — money and government regulations.
LOUISIANA
The Big River Coalition, based in Metairie, La., wants to increase the federally authorized depth of the Mississippi River deep-draft channel — from Baton Rouge to the Gulf of Mexico — from 45 feet to 50 feet. “The Panama Canal expansion will reduce transportation costs 30 to 35 cents per bushel of grain,” Sean Duffy, Big River Coalition’s executive director, told FarmWeek. “We are seeing investments in countries like Brazil of $87 billion in their ports, waterways, the railroad and highways. And right now, they can grow crops cheaper than we can. But where we win is in the transportation costs on the Mississippi River. If they are ever successful in investing and capturing it, and we lose that margin, then the American farmer is in jeopardy of staying competitive in international markets.” The Water Resources Reform and Development Act (WRRDA) of 2014 removed a key hurdle for the dredging project. Previous bills required a 50-50 cost share agreement between the state and federal government to deepen a channel beyond 45 feet. The 2014 WRRDA bill changed that requirement from 45 feet to 50 feet. “Without that provision, we were stuck on hold,” Duffy said. What’s next? A 1981 economic benefit analysis must be updated, a cost of $3 million to be equally shared by the Corps and the Louisiana Department of Transportation and Development. The coalition notes that the Mississippi River Basin produces 92 percent of the nation’s agricultural exports. Nearly 70 percent of the nation’s grain crops are exported via the Lower Mississippi River. “The Mississippi River connects 31 states to waterborne commerce,” he said. “I think if we do everything we can to advance the Mississippi River into the future, deepen it, maintain locks and dams, replace locks and dams ... that no other channel in the world can compete with the Mississippi River system.”
Above, a ship docked at the Port of Savannah cannot fit through the current Panama Canal due to its size. Right, about 80 percent of cargo received at the Port of Savannah arrives by truck. Port officials boast the port is home to the single largest container facility in the country. (Photos by Deana Stroisch)
Zen-Noh Grain Corp. (ZGC) in Convent, La., expanded twice since 2012 to accommodate bigger vessels that eventually will pass through the expanded Panama Canal. The company also may consider a third expansion to add a barge unloader and dock. Employees at the terminal, which transfers grain from Mississippi River barges headed to Japan, load between 220 and 240 boats a year and export nearly 500 million bushels of grain annually, according to Eric Slater, ZGC’s general manager. “We’ll be able to load bigger boats faster and more efficiently,” Slater told FarmWeek. “To my knowledge, we will be the only exporter in the Gulf that will be able to reach post-Panamax size vessels, which are roughly 85,000 to 102,000 tons of cargo, without shifting or moving that ship.” Officials at the Port of South Louisiana in LaPlace, La., estimate bulk cargo will increase by 15 percent because of the Panama Canal expansion. Eventually, the port hopes to have a dock solely for handling container shipments.
GEORGIA
Georgia’s Savannah Harbor Expansion Project took 18 years to get final government approval. The project began in 1996. “We needed it because we saw that cargo coming,” said Lee Beckmann, manager of governmental affairs for Georgia Ports Authority. WRRDA included authorization for
its dredging project — but no money. The state of Georgia committed $261 million for the project. The federal government would need to contribute about $400 million. Beckmann said the project to deepen the waterway to 47 feet will proceed — even without the federal money in hand. State financing should help pay for expenses for the first 1 1/2 years, he said. “The cost of not doing the project ... of not moving ahead, does so much damage,” he told farmers. Beckmann said Savannah’s Garden City Terminal represents the single largest container facility. Recently, about 8,000 trucks passed through the 1,200 acre facil-
ity in one day. In 2012, Savannah handled 13 percent of the container exports in the United States. He attributed the port’s success to “balanced trade.” Exports total 52 percent versus 48 percent for imports. But its downside: Savannah represents See Panama, page 5
Page 5 • Monday, September 15, 2014 • FarmWeek
INFRASTRUCTURE STUDY TOUR 2014
A dozen Illinois farmers learn about infrastructure challenges
Illinois farmers say they learned more about how products get from their farms to customers overseas during Illinois Farm Bureau’s Infrastructure Study Tour. The group of 12 farmers spent a week visiting ports and transload facilities, and meeting with officials in Texas, Louisiana, Georgia and Virginia. “I was really impressed with the efficiency of the logistics of getting our farm commodities to our foreign customers — the automated container handling docks that we visited, the size of the ships, the loading of the ships,” said Rock Katschnig, a Henry County Farm Bureau board member from Prophetstown. “The key part of this efficiency was depth of the channel
Panama
Illinois Farm Bureau’s 2014 Infrastructure Study Tour Group stops at the Port of South Louisiana. Pictured in back row from left to right: Ron Pierson, Paul Beisiegel, Larry Miller, Jeff Kirwan and Jim Malley. Lower rows from left to right: Dave Carr, Brian Niemann, Larry Beck, Chet Esther, Rock Katschnig, J.C. Reitmeier, Scott Sigman, Tamara Nelsen and Nelda Burnett. (Photo by Deana Stroisch)
... Every stop we made, they talked about deepening the channel to accommodate
the shallowest port in the world, according to the Army Corps of Engineers. Continued from page 4
VIRGINIA
The Port of Virginia already has its nearby channel dredged to 50 feet and has Congressional authority to dredge to 55 feet, according to Greg Edwards, director of communications. Port of Virginia is the only East Coast port with that depth, he said. “That’s our ace in the hole,” Edwards said. “That’s what makes us special today.” The port, located 2 1/2 hours from the open sea, is located near a U.S. Naval base. Its nearly completely automatic operating terminal, Virginia International Gateway, opened in 2007. It was paid for by Maersk, a global shipping company. The port authority and operating terminal combined employ 440 people. For the first six months of this year, more container shipments were exported from the port than imported. The bulk of the containers — 62 percent — came to the port by truck. About 34 percent came by rail and 4 percent on barges, Edwards said. Top trading partners by container volume include China, Brazil and Germany. Imports come from China, Ger-
big ger vessels.” Nelda Burnett, who farms in Massac County with her hus-
band, admits she grew up a “city girl.” She described the trip as an “awesome, eye-opening experience.” She said she was impressed by the amount of exports and imports traveling through the ports. “When you go to the grocery store, unless you’re totally selfsufficient and you can live off what you grow ... you’re going to be affected by these things,” she said. “As an average consumer in the Midwest, we’re not aware of what’s going on in these ports and the needs that are there.” J.C. Reitmeier, who farms near St. Joseph, said he knew little about ports before the study tour. “For anybody that’s never been to a port, they need to go
see it,” he said. “You can’t believe the magnitude of commodities going in and out, no matter what it is — orange juice, coffee — just container after container. The ships that bring it in are giant and they’re getting bigger all the time.” He said each port seemed to have plans to expand to accommodate bigger vessels that will eventually pass through the Panama Canal. “They see the future. The exports and imports are going to be larger. Bigger ships coming in. Bigger ships going out,” Reitmeier said. “They need to expand to keep up with world trade. And they have a plan. Whether they can get the money — that’s the hold up.” — Deana Stroisch
many and India. He said both railroads that serve the port — CSX and Norfolk Southern — plan upgrades to send double-stacked trains from East Coast ports like Virginia to the Midwest.
TEXAS
The Sabine-Neches Navigation District received authorization for a $1.1 billion dredging project in WRRDA, said Randall Reese, general manager of the district. The project — the largest included in WRRDA — would deepen the waterway from 40 feet to 48 feet and extend the 50foot-deep offshore channel by 13 miles. The Sabine-Neches Waterway represents the fourth largest in the nation and the top U.S. oil importer. Refineries along the channel refine at least 13 percent of the nation’s daily gasoline consumption. The waterway serves the ports of Beaumont and Port Arthur. The last waterway upgrade was in 1962. Officials say improvements are long overdue. “We are way behind the curve on what needs to occur on this waterway,” Reese said. The Port of Port Arthur is the smallest port in the Gulf of Mexico, but probably the most modern, said Orlando Ciramel-
Illinois Farm Bureau’s Infrastructure Study Tour group met with Randall Reese, second from left, and Paul Beard, middle, from the Sabine-Neches Navigation District in Port Arthur, Texas. The district received authorization in the Water Resources Reform and Development Act (WRRDA) to deepen the channel from 40 feet to 48 feet. (Photo by Deana Stroisch)
la, senior director of trade development. The port, which plans a $30 million expansion project to add another berth, isn’t in the container business because it’s restricted by land. But at the Port of Galveston, the Panama Canal expansion may prompt officials to return to shipping products in containers. The port — ranked the fourth largest cruise terminal — doesn’t receive any tax
money and doesn’t have any taxing authority, according to Capt. John Peterlin III, senior marketing director. It competes with the Port of Houston, which has taxing authority and can issue bonds to pay for improvements. Galveston, 30 minutes from open sea, joined with the Port of Houston in a feasibility study to dredge deeper for the Panama Canal. The Port of Texas City has a permit to go to 50 feet, Peterlin said.
Statewide coalition against proposed ‘waters of U.S.’ rule BY DEANA STROISCH FarmWeek
A coalition of 24 Illinois organizations — from farmers to miners to homebuilders — has joined efforts to oppose proposed changes to federal rules governing “waters of the U.S.” The coalition, which includes the Illinois Farm Bureau, held a news conference last week at the Sangamon County Farm Bureau in Springfield. The group called on the Environmental Protection Agency (EPA) and Army Corps of Engineers to either withdraw the proposed rule or rewrite portions of it. “Under the proposed rule,
nearly every drop of water that falls on our state will be under the control of the federal government,” said Lauren Lurkins, IFB’s director of natural and environmental resources. “Farmers and other individual landowners would have to apply for and wait for federal permits, both from the Army Corps and from U.S. EPA, to do things that are considered common farming practices. We’re talking things like building fences, and spraying pesticides for bugs and for weeds.” Without the proper permits, Lurkins said people face the threat of lawsuits — from the federal government and other
citizens — and penalties of up to $37,500 a day per discharge. Groups said the proposed rule would also add cost and delays to projects.
FarmWeekNow.com
Go to FarmWeekNow.com to view a video of Illinois organizations opposed to the proposed rule.
Opponents say the proposed rule expands federal jurisdiction, while EPA maintains the rule merely clarifies which wetlands and streams are considered “waters of the U.S.” The proposed rule states that under the Clean Water Act:
• Most seasonal and raindependent streams are protected. • Wetlands near rivers and streams are protected. • Other types of waters may be protected, if a case-specific analysis shows that they have a “significant nexus” — either alone or in combination with similarly situated “other waters” — to a traditional navigable water, interstate water or territorial seas. Jerry Peck, Illinois Manufacturers Association, called the proposed rule a “jobs killer” and said the extra costs, regulations and time delays could result in companies looking outside of the United States.
Phil Gonet, president of the Illinois Coal Association, said the proposed rule “would put this entire industry at risk.” He said the proposed rule would increase the cost of starting — or expanding — a mining operation with “effectively no corresponding environmental benefit.” “Given the ever-increasing cost of mitigation, not to mention the time, cost and litigation burdens associated with trying to obtain any federal Clean Water Act permit, doing business in Illinois will be cost prohibitive for any mining companies looking to invest here,” Gonet said.
FarmWeek • Page 6 • Monday, September 15, 2014 Bernie Walsh, Durand, Winnebago County: More of the same last week with another inch of rain Wednesday. The cool temperatures are the big story now. No frost, but we need warmer, drier weather to dry the crops down. Lots of bean leaves are turning yellow, and the corn is also slowly turning color. There is definitely a hint of fall in the air. Lots of maintenance on the harvest equipment, and some corn silage being chopped. Pete Tekampe, Grayslake, Lake County: After highs in the upper 80s last Sunday (Sept. 7), it was in the lower 40s Friday morning. We got 1.1 inches of rain. Corn is turning fast mainly because of northern leaf blight. Early beans are also turning, but we are still three or four weeks from harvest because the lower ground is grass green like later-planted beans. No hay has been baled in two or three weeks. Leroy Getz, Savanna, Carroll County: First, a correction on last week’s report. I had 3.2 inches of rain for the month of August, not just for the prior week. We received 1.9 inches of rain Tuesday and Wednesday. Record low, cool days are slowing crop maturity, but the soybeans seem to be yellowing faster. More corn silage has been chopped and some hay was baled Monday before the rains. Ryan Frieders, Waterman, DeKalb County: Cold temperatures settled into the area the last few days. We received more than 2 inches of rain. With the lack of heat, there is no drying going on in the fields. Crop progression is stalled, and we are waiting for better weather. Seed corn harvest in the area has begun. Moisture is in the 35 to 38 percent range. There has also been a little corn chopped for silage. Ken Reinhardt, Seaton, Mercer County: I had 4 inches of rain midweek. There was some flooding and loss of crops. At least one local operation started on corn Monday (Sept. 8) before the rain. Record-low temperatures made it feel like one should be putting away equipment for the winter rather than preparing for harvest. The forecast for Friday night didn’t mention frost, but it will be awfully close to it. Jacob Streitmatter, Princeville, Peoria County: It was a wet week across the area. Some areas received more than 5 inches with strong winds and hail, and others just had a couple of gentle inches. Some corn harvest has started, but nobody is talking of outstanding yields that I had expected. Tim Green, Wyoming, Stark County: It was a cool, wet week. Total rainfall was about 4 inches on the south side of the county, and probably around 2 inches on the north side. Farmers are getting ready to harvest. Be safe.
Mark Kerber, Chatsworth, Livingston County: Water everywhere is the report here in Livingston County. I dumped out 2.5 inches collectively, which came after 6 inches two weeks ago. Waterways, ditches and fields are full. Now what we need is dry, hot weather to push this crop to maturity. Corn is drying down some, but needs more time before harvest is in full swing. Soybeans are starting to turn with some fields grass green yet. Commodity prices are still going down. Will we see a “2” in front of fall corn? Ron Haase, Gilman, Iroquois County: We received rain Friday (Sept. 5), Tuesday and Wednesday. We recorded a range of 2.4 to 3.3 inches. The cold weather that just arrived, and the excessive moisture, is not what we wanted to finish off crop development. More cornfields have reached black layer and are at R6, or physiological maturity. Most soybean fields are at R6, full seed stage. After the USDA report, local prices for Sept. 11 closed at nearby corn, $3.13; new-crop corn, $3.03; nearby soybeans, $11.82; new-crop soybeans, $9.48.
Brian Schaumburg, Chenoa, McLean County: Between 3 to 7 inches of rain fell since my last report but, remarkably, most of it soaked in. Cooler temps will hinder the start of harvest as no one wants to mud out a big crop at this early date. The only surprise about the crop report was that it wasn’t higher. CME prices continue to erode leaving great uncertainty for future profitability. Better dust off those old tried and true marketing tools that we haven’t had to use the past few years! Corn, $3.31, fall, $3.11, fall ’15, $3.52; soybeans, $11.06, fall, $9.51, fall ’15, $9.50; wheat $4.85. Steve Ayers, Champaign, Champaign County: A Mary Poppins rainy spell with .22 of an inch of rain for the Friday Night Football Washout (Sept. 5), and .95 of an inch from a Tuesday surprise day early deluge, then 1.33 toad strangler Wednesday for a 2.5 inch total. The low on Saturday (Sept. 13) will be 46, Sunday 41 and Monday 44 degrees. Brings back memories of Sept. 22, 1974, when Illinois recorded three consecutive belowfreezing nights that devastated the soybean crop and damaged corn. In our little corner of the world, corn is 78 percent dented, 3 percent mature and zero percent harvested. Soybeans are 6 percent dropping leaves. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Our gauge picked up 1 inch during the weekend (Sept. 5-6), and then 5 inches Tuesday and Wednesday. So, the dust is settled in most fields for a while. I have heard of a few starting chopping in early-planted fields. I think most are still in the “getting ready” stage of equipment and bins, etc. Some are working hay yet, and lawns are still green. SDS in soybeans is still an issue. Have a safe week. Carrie Winkelmann, Tallula, Menard County: We recorded 6.42 inches of rain last week, but I have spoken to people who received that much in one day. It has definitely been a soggy week, which has continued to push, what we already knew would be a late crop, back further. Tom Ritter, Blue Mound, Macon County: Several combines were going early last week, mainly opening some fields or trying to catch some premium for early delivery. Showers by noon Tuesday brought field activity to a halt. Rainfall totaled anywhere from 1.5 to 2.5 inches. Some places reported even higher. Needless to say, the ground is very soggy and having to firm up before harvest continues. A lot of corn is starting to get down towards 25 percent and early corn harvested has been running 22 to 23. Soybeans continue to mature at a rapid rate. The majority of the soybeans are still two to three weeks away from harvest. Farmers are still optimistic on corn and bean yields, and anxious to get started, but hoping that rain subsides so we don’t have to struggle getting this crop out of the field. Todd Easton, Charleston, Coles County: Harvest officially started in Coles County Monday (Sept. 8) and Tuesday just ahead of the rain event that put 1.5 inches in the gauge. Moistures were reported to be in the mid to upper 20s and yields were well over 200 bushels. I have also heard of one bean field getting cut east of the river, which is surprising when the closest beans I have seen will need another two weeks to get rid of the leaves and dry down. There will most likely be several combines getting started in the next few days and especially this week. I’m quite anxious to see what’s out there. How about you?
Jimmy Ayers, New City, Sangamon County: We had anywhere from 1.5 to 7 inches of rain across the county. There is a little bit of high water in the areas that received the most rain. A lot of combines were rolling. One load was down to 20 percent. Most of them are running 26 to 29 percent. We are almost 20 percent done on corn. There has been a lot of wind damage, so some fields are down worse than others. With this larger crop, the stalk is having trouble holding the ears up. Even at 28 percent, some of the ears are coming off as the corn head hits them. Beans are coming around, and it seems like SDS has been set back by normal maturing of the beans. I have not seen or heard of any cut yet. The first plot results are in, and the average was 258, the high was 283, and lows down around 240. There was a 45-bushel swing between the early maturing and the later maturing. Seemed liked the fuller the season, the better the yield. Need to get out and check your fields if you haven’t been there. Maybe want to start rowing. Think safety and be careful. Doug Uphoff, Shelbyville, Shelby County: Received 2.8 inches of rain Wednesday. Corn moisture levels came down somewhat when we had the 90degree weather, but have slowed with the below-normal temps that are passing through. Been hearing 21 to 26 percent. We may try corn next week. Last year, we started on Sept 23. Soybeans are lodging with the heavy rainfalls. Hay may not get cut. We turned our ram in with ewes last week. Have a good week and be safe out there. Jeff Guilander, Jerseyville, Jersey County: In this area, the idea of “big crops get bigger” is officially gone. Forty-five days ago, we had what looked to be one of the biggest harvests in memory. Since then, widespread sudden death (and with the timing, no pods are left on infected plants), more than 20 inches of rain (and in many cases almost 30), and a few good wind events let us know yields have dropped. On the upside, storage may not be the problem everyone anticipated. Anyway, early-season corn planted is running in the high teens with mid-season being 8 to 10 points wetter. Beans still look to be a couple of weeks out, but hard to tell. Dave Hankammer, Millstadt, St. Clair County: While the calendar indicates it is still summer, the weather is taking on a fall season feel. Daytime temperatures cooled down through the week from the 80s to mid-60s. Several storm fronts moved through the region, leaving varying amounts of rainfall and some wind damage in a few areas. I collected 1.6 inches of rain through the week. A few fields of corn were harvested here in the county last week. Grain moisture ranged from the mid to upper 20 percent range. Samples I hand shelled and tested last week were closer to 30 percent. The pace of corn harvest will be slow, while the majority of the crop is on the green side. Other fall crops being harvested include pumpkins and mums. Local grain bids are corn, $3.28; soybeans, $10.27; wheat, $3.81. Have a safe week. Rick Corners, Centralia, Jefferson County: Had another .8 of an inch of rain last Friday night (Sept. 5) and another .8 of an inch Wednesday night. Like the song goes, “I ain’t never, I ain’t never seen nothing like this.” Some beans are turning yellow from maturity, and others are turning brown from SDS. Some say it won’t hurt the yield, but time will tell. Not much going on with it cloudy and drizzling most every day. Oh yeah, talking in the 40s soon. Heavens, not yet! Kevin Raber, Browns, Wabash County: Several fields of corn have been shelled. The yields have been good. Moisture has been running in the middle 20s or higher. There has been some damage in the corn that has been harvested. SDS is still spreading in the firstcrop soybeans. Ample rainfall has the double-cropped soybeans looking good.
Page 7 • Monday, September 15, 2014 • FarmWeek Dean Shields, Murphysboro, Jackson County: We received from .4 to 2 inches of rain. More farmers are starting corn har vest and yields are good. A farmer told me today that a load of his corn was refused because of aflatoxin. I don’t think it will be a big problem in our area, but I was surprised to hear this. The Group 3.8 beans are beginning to turn yellow. We had some sudden death and charcoal rot in the soybeans. Corn harvest will probably be in full swing next week. We sure don’t like the price. Hope the yield will pick up the slack.
Randy Anderson, Galatia, Saline County This week’s shop talk is high yield, high inputs and cheap, cheap commodity prices. There seems no end to the market going down. Our standby rotation crop, wheat, with inputs and last year’s dock is making it look not too favorable to plant this fall. Every time we’re ready to go to the field, it rains. Hope I get it in this week. I received 1.75 inches of rain. I hate to say this, but I look for this fall to be a wet one.
Ken Taake, Ullin, Pulaski County: Wednesday evening we received 1.4 inches of rain. I heard of totals as high as 2.5 inches. We had hoped to start corn harvest last week, but now it will be early this week before we get into the field. I estimate maybe half of the area farmers have ventured into the cornfield at least a little bit before the rain. The yields I have heard so far are good. Early soybeans are probably two to three weeks from harvest. Quite a few fields are turning yellow, and a few are completely yellow with a lot of leaves missing. SDS continues to be more apparent in soybean fields, so we will have to see how that affects yields. Please take time to be careful as we are entering this busy season.
Farmer applies precision to nutrients, farming
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.
National 4R award winner BY KAY SHIPMAN FarmWeek
Bureau County far mer Chris VonHolten reaps benefits from site-specific fertilizer applications on his varied soils near Walnut. VonHolten also points to environmental benefits of nutrient management. “After all the publicity in Ohio, I think everybody needs to be proactive and do a better job of managing our nutrients and where we place them,” VonHolten said, referring to a Lake Erie algal bloom that impacted Toledo’s water. E a r l i e r t h i s y e a r, Vo n Holten received a national award for nutrient stewardship. VonHolten and John Werries, who operates Werries Farms LLC near Chapin, were two of five farmers nationwide to win a 4R advocate award from T he Fer tilizer Institute. The 4R program involves using the right fertilizer source at the right rate and right time with the right placement.
VonHolten has applied the right fertilizer at the right rates, placement and time for years, according to Malcolm Stambaugh, his crop adviser with Ag View FS, Walnut. Stambaugh nominated VonHolten for the award. “The main thing is he keeps the fertilizer where it goes,” Stambaugh said. “He does split applications in the spring and fall.” Vo n H o l t e n f a r m s 1 , 0 8 0 acres with widely varying soil types from lighter sandy soils to dark ones. His corn yields range from 60 to 300 bushels per acre. He began using variable rate fertilizer applications in the ‘80s. “We started to see benefits right away. On our lighter ground, we use the (crop nutrient) removal rate and whatever the soil test (recommendations) showed,” VonHolten said. VonHolten used no-till for c o r n a n d s oy b e a n s i n t h e ‘80s. About 1995, he switched to strip-till on cornf i e l d s. A t t h e t i m e , Vo n Holten planted more corn on corn and applied anhydrous
Listen.
‘The main thing is he keeps the fertilizer where it goes. He does split applications in the spring and fall.’ — Malcolm Stambaugh Ag View FS crop advisor
with a stabilizer in the fall. About six to seven years ago, VonHolten began using a strip-till bar and a dry fertilizer cart. The system allows him to apply fertilizer in the spring or fall, depending on the soil
Concerned
In a letter to JCAR, IFB raised concerns about water definition in the proposed rules, noting the definition was different from that discussed during legislative negotiations. IFB also questioned expansion of IDNR’s authority to impose setbacks greater than stipulated in the law and to impose different requirements Continued from page 1
testing each field every four years on 2.5-acre grids. Staying with site-specific precision, VonHolten began planting variable rate cor n populations about four years ago. “We’ve been pleased,” he said of the results. He also uses row shut-offs on his planter, which prevents overplanting of end rows and grass waterways. “We have lots of waterways,” he added. VonHolten “does a lot of conser vation,” Stambaugh said.
type. “Some of the lighter ground or more highly erodible ground, we apply (fertilizer) in the spring,” he added. VonHolten also keeps current on soil nutrient levels by
FarmWeek featured John Werries’ nutrient management system in a previous article.
for water quality testing than specified in the law. IFB supported IDNR clarifying that all public hearings occur in the county where a well is located or within 30 miles of the county border. IFB also supported rule inclusions that clarify tile line repairs and land restoration. “We are asking changes be made to align the rules with the
act before being approved by JCAR,” Bodine said. JCAR members have 45 days to state they have no objections, object or make recommendations. JCAR members may request a 45-day extension. JCAR does not have a public comment period and does not allow the public to testify at its meetings.
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Deana has nearly 15 years of reporting experience. She and her colleagues spend countless hours getting the information you need, quickly, accurately, and in a way you can understand. “It’s our job to be there for you,” she says. Federal policy can be complicated, with many twists and turns. So, with each story, Deana sorts out what matters to you.
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New partnership to harness state’s ag, food strengths FarmWeek • Page 8 • Monday, September 15, 2014
BY KAY SHIPMAN FarmWeek
Illinois Farm Bureau and the Searle Funds at The Chicago Community Trust last week unveiled a new strategy partnership, The Food and Agricultural Roadmap for Illinois — FARM Illinois. FARM Illinois will encompass the state’s top agricultural, business and economic leaders to develop and advocate for a comprehensive strategic plan focusing on the state’s economic leadership in global food security. Leaders will work toward releasing a plan next spring. FARM Illinois grew from the roots of Vision for Illinois Agriculture. Begun in 2008, the Vision for Illinois Agriculture involved leaders representing many agriculture sectors. The strategy’s three major goals strive to make Illinois among the top three states in both food-
manufacturing and crop and animal production, and to lead the nation in biobased product technology and services. Illinois Farm Bureau President Richard Guebert Jr. envisioned FARM Illinois “planning how the agriculture and food industries can come together to promote the whole sector from farm to plate.” Guebert, who will co-chair the production and supply committee, Richard Guebert Jr. foresees benefits to be gained from enhanced connections among Illinois agriculture leadership and Chicago industry leaders. Those connections could “tie all our agricultural assets and Chicago food assets together,” Guebert continued.
University of Illinois President Robert Easter, chairman of the leadership council, agreed with Guebert on increased communication and conversations in all sectors from equipment manufacturing to meat and food processors, and from financial instituRobert Easter tions to the Chicago Board of Trade. For 100 years, “the global market was set here; it gave us economic opportunities,” Easter noted. “I hope this picks up where the Vision was and gains broader involvement of industry sectors and all parts of the state,” Easter said. Among IFB goals for the new project are increased awareness about the
economic importance of agriculture and food to Illinois. This would result in increased investment in ag research and greater interest in agricultural careers. The U of I and its fellow institutions need to “provide the workforce with education and the technology for whatever the next phase is going to be,” Easter said. Other IFB goals include support for investment in Illinois transportation infrastructure, an improved state business climate with a common sense regulatory environment, state fiscal integrity, and efforts to attract food and agricultural businesses here. IFB also wants to continue working toward Vision for Illinois Ag goals for commodity and value-added production, food manufacturing, and biobased product technology and services.
Vilsack: USDA keeping tabs on conservation, railcars and farm bill BY KAY SHIPMAN FarmWeek
USDA will invest $328 million in conservation easements on 129,000 acres nationwide, U.S. Agriculture Secretary Tom Vilsack announced in a wideranging teleconference last week. From railcar shortages to farm bill implementation, Vilsack shared issues he addressed earlier that day with
President Barack Obama and Vice President Joe Biden to assure them “we’ve got our eye on the ball.” The NatuTom Vilsack ral Resources Conservation Service oversees a new agricultural conservation
easement program that consolidated three former conservation easement programs. Of 380 easements selected for funding, 60 percent cover preserved farmland and grasslands with 40 percent involving wetlands. Illinois landowners will receive $1.807 million for easements. As for railcar concerns in the Midwest, Vilsack reported he briefed the president and
vice president on the situation. He characterized Burlington Northern Santa Fe Railway as being “on track” to make a $5 billion investment, while the Canadian Pacific Railway Co. “still has a lot of work to do.” Vilsack added he hoped the U.S. Surface Transportation Board would monitor the situation. “We will keep an eye on this and keep pressure on the railroads” to get this done, Vilsack said. The secretary also briefed Obama and Biden on modernization of Farm Service Agency (FSA) technology. He noted farmers are able to
retrieve multicounty farm records at a single county office rather than visit several counties. Vilsack envisioned streamlining of acreage reporting as FSA’s next big challenge in 2015. USDA employees completed a lot of work in the first six months since the farm bill was signed, he said. The secretary added he hoped “modeling on the farm safety net programs” is finished by the end of September. Farmers should advise Congress that it finished its job of passing a farm bill, and “don’t interfere with it,” Vilsack offered.
COMMUNITY FARM SAFETY EFFORT
Edwards County FFA’er Trent Thompson, left, works with FFA Advisor Michelle Wisman on a community display sign as part of National Farm Safety and Health Week Sept. 21-27. Edwards County Farm Bureau teamed with the FFA chapter to educate the community about safety and promote the weeklong event. Programs revolve around the theme, “Safety Counts — Protecting What Matters.” Safety posters will appear at various businesses throughout the county. Public service announcements will air on WFIW Radio, and community displays will appear in front of the high school and a major intersection in the county. The displays will urge motorists to watch out for farm equipment and be safe during harvest season. (Photo by Rebecca Perry, Edwards County Farm Bureau manager)
Page 9 • Monday, September 15, 2014 • FarmWeek
Specialty corn harvest ready to ‘pop’ in Mason County FarmWeek • Page 10 • Monday, September 15, 2014
BY DANIEL GRANT FarmWeek
Popcorn lovers should get a lot of bang for their buck from this year’s harvest. Good growing conditions for corn and soybean development much of this season also benefited commercial popcorn acres in the state, many of which are concentrated in Mason County. “As far as production this year, it’s looking excellent,” Steve Turner, a longtime popcorn producer from Chandlerville, told FarmWeek. Turner, whose family has grown popcorn the past quarter century, planted about 380 acres of commercial popcorn this season. He grows it under contract for the Farm Fresh Popcorn Co., Ridgway. “It (Mason County) is one of the top producers of popcorn (on a county basis) in the country,” Turner said. “A good number of producers raise it. It (popcorn) likes water, and we’ve got a lot of that with irrigation and sandy soils.” At the state level, Nebraska typically grows the most total popcorn each year, followed
by Indiana and Illinois. Yields this year are expected to be good to excellent in many of the popcorn fields in the state. Farmers who grow popcorn must harvest it at a low moisture level and take special precautions to ensure quality of the kernels. “We can’t harvest at a high moisture, usually around 16 to 17 percent to begin harvest,” Turner said. “We’ve got to be careful with our combine settings and make sure we don’t get any stress cracks. Once you crack that kernel, it won’t pop.” Popcorn kernels have a hard, moisture-sealed hull and a dense starchy interior that allows the well-known pop when heated to about 180 degrees. The state of Illinois declared popcorn the official state snack in 2003. The movie-time treat contains high levels of dietary fiber and antioxidants, and also low calories and fat content. Turner grows popcorn in Mason County and on farms in surrounding counties. He recently was elected president of the Cass-Morgan Farm Bureau.
One of his top priorities as county Farm Bureau president this year revolves around the Environmental Protection
Agency’s proposed rule to redefine waters of the U.S. “That (regulation) could affect a lot of crop acres,”
Turner added. “We’ve got to speak up during this comment period (which ends Oct. 20).”
New soil test offers increased accuracy
Soil tests that determine fertilizer needs measure nitrate in the soil, but don’t sufficiently account for soil microbes that mineralize organic nitrogen and make more of it available to a crop. Richard Haney, a USDA soil scientist in Temple, Texas, has developed a soil test that replicates some of the natural processes occurring in a field and accounts for that microbial activity, along with measuring nitrate, ammonium and organic nitrogen. The new soil test, dubbed the soil health tool, involves drying and rewetting soil to mimic the effects of precipitation. It also uses the same organic acids that plant roots use to acquire soil nutrients. The tool measures organic carbon and other nutrients, accounts for the effects of using cover crops and no-till practices, and will work for any crop produced with nitrogen or other types of nutrient fertilizer. Haney made it available to commercial and university soil testing laboratories and has worked with farmers to promote it. Growers who use it receive a spreadsheet that shows the amounts of nitrogen, phosphorus and potassium available to crops. On average, they reduced fertilizer costs by about $10 to $15 per acre.
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Above: Steve Turner, a farmer from Chandler ville and newly elected president of the Cass-Morgan Farm Bureau, uncovers an excellent looking popcorn crop in his Mason County field. Turner grows about 380 acres of popcorn for commercial production. Left: Turner displays a popcorn ear (right) compared to an ear of field corn (left). He expects excellent yields for both crops this year. (Photos by Cyndi Cook)
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Fifty-six drivers motor along a 35-mile route during the 6th Wayne County Farm Bureau Antique Tractor Drive on Labor Day. Participants raised $650 for the county Farm Bureau Ag in the Classroom program. Drivers ranged in age from 17-year-old Zach Ballard of Cisne to 84-year-old Bob O’Daniel of Fairfield. Jackie Knackmus Jr. of Vincennes, Ind., drove the oldest tractor — a 1936 Allis Chalmers RC. (Photo by Doug Anderson, Wayne County Farm Bureau manager)
Page 11 • Monday, September 15, 2014 • FarmWeek
Soil sampling at 12 mph
Precision agriculture on display at Midwest Ag Industries Expo
Precision agriculture could play a key role helping farmers feed a growing population while maintaining positive farm margins. New technology on display recently at the Midwest Ag Industries Expo at the McLean County Fairgrounds in Bloomington helps farmers and ag industry professionals improve spray accuracy, reduce nitrogen loss, boost crop yields and reduce input costs, among other benefits. MAGIE expanded this year, despite a downturn in crop prices, to 105 exhibitors to accommodate increased interest in precision ag components, post-application nitrogen equipment and cover crop seeders. “Overall equipment sales probably will be down (this year due to lower farm income),” said Jean Payne, president of the Illinois Fertilizer and Chemical Association, which hosts the annual MAGIE show. “But sales of post-application nitrogen equipment is going up. It’s exciting to see interest in equipment for that.” One piece of equipment introduced at this year’s show that could change farming was an automated precision soil sampling system from Falcon. The Falcon system consists of a ground-driven, 5-foot diameter stainless steel drum that collects and mixes core
samples every 15 feet. The desired core depth can be set between 4 and 12 inches. A wireless illuminated camera streams video to a laptop computer inside the tow vehicle to allow the operator to monitor procedures. “We (in agriculture) make a lot of significant economic decisions based on (soil) samples, yet we don’t always know how they’re taken,” said Allan Baucom, a North Carolina farmer who helped develop the automated soil sampling system. “This provides consistent depth and consistent spacing,” he continued. “An added benefit is efficiency. You can easily double the amount of samples you can take.” The Falcon system collects soil samples at speeds of 8 to 12 mph. Premier Fabrication of Congerville (Woodford County) begins producing the Falcon system this month. “I think this could be a game changer,” Robert Myers, sales/manufacturing engineering services specialist at Premier Fabrication, said of the Falcon automated soil sampling system. Visit the website {falcon soil.com} for more information. Elsewhere at MAGIE, Junge Control unveiled new technology via zone automation to improve fluid and dry ingredient measuring, mixing
Farmers can learn more about the Precision Conservation Management program during a free webinar from noon to 1 p.m. Friday. Register for the webinar at {go.illinois.edu/RCPP}. Participants may ask questions and learn more about the program developed by Illinois agricultural associations with University of Illinois faculty. The program focuses on building conservation practices into management of commodity crop farming and animal production operations. “This new Precision Conservation Management program will work as an extension of the Illinois Farm Business Farm Management Association (FBFM), a successful model already familiar to growers,” said Jonathan Coppess, U of I clinical professor of agricultural policy. FBFM was established in 1924 as a cooperative education/service program associated with the U of I to assist farmers with financial management decision making.
“Most growers throughout the country independently maintain and manage their own yield data, agricultural input records, seeding information, crop insurance records, etc.,” said Laura Gentry, Illinois Corn Growers director of water quality research and adjunct assistant professor at the U of I. “This new program will help manage agronomic records and, more important, uses that data to provide individualized agronomic consulting to farmers considering implementing conservation practices on their farms.” Gentry said growers considering enrolling in conservation programs see paperwork and data entry requirements for participation as a major deterrent. As part of the proposed Precision Conservation Management service, agents will collect relevant grower management data and, at the grower’s request, will securely upload required information to the program on behalf of the grower to guarantee confidentiality.
BY DANIEL GRANT FarmWeek
Conservation webinar scheduled
and tracking systems at ag retail plants. “We call it precision inputs,” said Marty Richards, vice president of sales and marketing for Junge Control. The system allows for quicker and more accurate loading of sprayers and other equipment. It benefits farmers by allowing ag retailers to be more accurate with fertilizer and chemical measurements, reduce the number of misapplications and produce more timely input applications for crops. Visit the website {jungecon trol.com} for more information.
Allan Baucom, representing Falcon, dumps soil into an automated precision soil sampling system during the Midwest Ag Industries Expo at the McLean County Fairgrounds in Bloomington. The annual event, hosted by the Illinois Fertilizer and Chemical Association, featured new technology in the ag input industry. (Photo by Daniel Grant)
Rail Safety Week: Look for trains at every track FarmWeek • Page 12 • Monday, September 15, 2014
Heading to the field for harvest duties and delivering grain to the local elevator will likely require many Illinois farmers to cross railroad tracks. Whenever you see tracks, think train. That’s the message from the Illinois Association of Chiefs of Police, Illinois Farm Bureau and six other groups as part of the first Illinois Rail Safety Week effort. The program, which runs through Saturday, aims to promote vehicle and pedestrian safety around railroad tracks and trains. Other sponsors
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Go to FarmWeekNow.com to learn more about Rail Safety Week in Illinois.
include the Illinois Commerce Commission, Illinois Department of Transportation, Illinois Operation Lifesaver, Illinois Sheriff ’s Association, Illinois Truck Enforcement Association and Mid-West Truckers Association. “In 2013, Illinois ranked third
in the nation in vehicle and trespasser grade crossing fatalities,” said Lou Jogmen, Illinois Association Chiefs of Police Traffic Safety Committee chair. “There were 126 crossing collisions last year involving motor vehicles, which resulted in 40 injuries and 21 fatalities. In addition, there were 52 trespasser incidents that resulted in 27 injuries and 25 fatalities when people trespassed on railroad property.” According to Chip Pew, Illinois Commerce Commission state coordinator for Illinois Operation Lifesaver, Illinois ranks second to Texas in rail crossings. Illinois boasts 7,700 public and 3,800 private rail crossings, Pew told the RFD Radio Network®. “The number of collisions and incidents has decreased over the last four years. It’s due to heightened awareness. The general public is paying more attention,” said Pew. “The most important thing for people to think about as they approach tracks is to look for trains. If they see a train,
they have to yield the right of way to the oncoming train,” he noted. Here are some other rail safety tips to remember: • Never stop your vehicle on the railroad tracks or within the highway-rail grade crossing. Highway-rail grade crossings are typically marked by white stop lines located on the pavement in advance of the crossing. If not marked by white stop lines, the highway-rail grade crossing extends from protective gate arm to protective gate arm. • Never drive around the gates. If you see a train coming, wait. According to Illinois Operation Lifesaver, more than 50 percent of all collisions occur at crossings with active warning devices (flashing lights, gates and ringing bells). • Look both ways. Always expect a train. • Get out and get away if your vehicle stalls at a crossing. Get everyone out of the vehicle and move far away immediately. Notify local law enforcement. • Watch for vehicles that must stop at railroad crossings, such as school buses. For more information about Illinois Rail Safety Week, visit {illinoisrailsafetyweek.org}.
Fall-applied herbicides key to weed management BY DANIEL GRANT FarmWeek
The importance of fallapplied herbicides continues to grow as farmers attempt to control pesky herbicide-resistant weeds. Robert Bellm, University of Illinois Extension crops and commercial agriculture educator, discussed fall-applied herbicides last month at the Illinois Wheat Forum in Highland. The annual event was organized by the Illinois Robert Bellm Wheat Association. “There are a lot of things fall-applied herbicides can do for you,” Bellm told farmers at the event. An increasingly important function of fall herbicides centers on glyphosate-resistant weeds, or “superweeds,” such as marestail (horseweed). “If you don’t think you have glyphosate-resistant horseweed, I think you’re fooling yourself,” Bellm said. “It’s a major problem.” The use of spring burndowns to try to control horse-
weed simply are less effective, according to Bellm. Fall-applied herbicides also reduce spring infestations of winter annual, biennial and perennial weeds. Controlling weed pressure that time of year conserves spring soil moisture, allows for earlier spring soil warm up and reduces early season infestations of pests, such as black cutworm, soil cyst nematodes, spider mites and stalk borers, according to Bellm. “Another reason to control winter annuals is we’ve seen some real messes in wheat fields,” said Bellm, who suggested wheat growers consider a fall burndown to control grasses. Nonresidual programs should be applied as late in the season as practical, while residual programs can be applied earlier in the fall. Both programs usually control weeds until late April. Fall-applied herbicides, however, don’t provide consistent extended spring weed control into late May or early June, or replace in-crop spring herbicide programs. “Target summer annual weeds with programs closer to planting time,” Bellm added.
HOME RUN FOR AITC
Tom Wilson, Saline County Farm Bureau director, far right, accepts $1,488 from Jon Basil, Southern Illinois Miners account executive, for Ag in the Classroom (AITC) programs. Members of the IFB Southern Illinois Regional Advertising Group recently staged a Farmers Appreciation Night at a Miners/Normal CornBelters game in Marion. Richard Guebert Jr., Illinois Farm Bureau president, threw the first pitch. The first 500 people entering the park received a complimentary Farm Bureau baseball. AITC coordinators sponsored Baseball Farm Charms for kids. County Farm Bureaus involved in the Southern Illinois Regional Advertising Group include Massac, Pulaski-Alexander, Pope-Hardin, Franklin, Johnson, Union, Jackson, Williamson, Perry, Saline, Gallatin, White, Wayne, Hamilton and Jefferson. (Photos courtesy of Southern Illinois Miners)
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DGAR — Prime Timers will sponsor a trip to Fair Oaks Dairy in Fair Oaks, Ind., at 8:30 a.m. Wednesday. The bus will leave from the Kroger parking lot in Paris. Cost is $55 for members and $65 for nonmembers. Call the Farm Bureau office at 465-8511 for reservations and more information by Monday. ENRY — Farm Bureau, the Illinois Environmental Protection Agency and Henry County Soil and Water Conservation District will conduct a free household hazardous waste collection from 8 a.m. to 3 p.m. Saturday at the Henry County Fairgrounds. Call the Farm Bureau office at 9372411 for more information. • Farm Bureau will host a farm bill overview seminar 10 to 11:30 a.m. and an onthe-road seminar 12:30 to 2:30 p.m. Friday at Western Illinois University Quad City Campus, Moline. Call the Farm Bureau office at 9372411 for reservations. NOX — Farm Bureau will co-sponsor a women’s marketing workshop from 9 a.m. to 3 p.m. Nov. 3 at Monsanto Agronomy Center in Monmouth. Naomi Blohn, Stewart-Peterson, will speak. Call the Farm Bureau office at 342-2036 for reservations by Oct. 27. Space is limited. EE — Farm Bureau will offer buy one, get
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New Illinois Farm Bureau Quad Cities Regional Advertising Committee TV commercials feature, from left, Field Moms Amy Hansmann of River Forest, Sharon Blau of Des Plaines and Betsie Estes of Elk Grove Village, and DeKalb County dairy farmers Jeff and Bona Heinsohn. Mark Pressburger, IFB audio visual director, adjusts equipment with Jim Polus, IFB senior audio visual producer. Commercials should begin airing in midNovember. (Photo by Ken Kashian)
Consumers’ questions focus of new Farm Bureau ads BY KAY SHIPMAN FarmWeek
Four Illinois Farm Families (IFF)Field Moms ask DeKalb County dairy farmers Jeff and Bona Heinsohn about meat, milk, animal care and crops in new TV commercials developed to answer consumers’ questions. Their questions and the Heinsohns’ answers will be shared in Quad Cities Regional Advertising Committee commercials that will air on cable television in the Quad Cities starting in midNovember. Set on the Heinsohns’ farm, Field Moms Amy Hansmann, Amina Nevels, Sharon Blau and Betsie Estes focused on four subjects. Does meat bought at the grocery store contain hormones? Does milk contain antibiotics? How are farm animals housed? Are GMO crops safe to eat? The farmers address those concerns from a consumer’s perspective, said Sabrina Burkiewicz, Illinois Farm Bureau promotion manager. IFB’s audio visual department shot and edited the four, 30-
Tuesday: • FarmWeek: “The Early Word” • Eric Schmidt, EJS Weather • Dave Love, Stone Seed: harvest conditions • Brad Clow, COUNTRY Financial: crop claim deadlines • Brad Uken, Champaign County Farm Bureau: Sept. 30 Meet the Buyers event Wednesday: • Tim Schweizer, Illinois Department of Natural Resources: fall camping • Jim Bower, Bower Trading
second commercials, one on each subject. The ad encourages consumers to find more information by visiting the IFF website {watchusgrow. org}. “We did this to continue trying to create dialogue between farmers and consumers who have important questions about their food,” Burkiewicz explained. IFB’s Consumer Outreach Action Team, formerly the Public Relations Action Team, plans to have the new commercials shown at movie theaters in Bloomington, Champaign, Crystal Lake and Peoria. In the future, each commercial may be viewed on the IFB YouTube site, the IFB regional advertising page and on IFB social media sites. In December, members attending the IFB annual meeting in Chicago may watch the commercials on the Palmer House closed-circuit television system during the meeting. To view the four ads, visit {http://bcove.me/jc6hsrsa}. To view a video about making the ads, visit {http://bcove. me/7wcksteq}. • Illinois Farm Bureau President Richard Guebert Jr. Thursday: • Kate O’Hara, USDA Rural Development: Great Region community and economic development • Tyler Edge, Timewell Tile Friday: • Bob Beck, WinField: field conditions • Rita Frazer, RFD Radio Network: reporting live from Farm Credit Illinois in Sherman To find a radio station near you that carries RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”
Page 13 • Monday, September 15, 2014 • FarmWeek
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one free slow moving vehicle emblems during September to celebrate National Farm Safety and Health Week. Call the Farm Bureau office at 8573531 for more information. IVINGSTON — Farm Bureau will host a wind energy informational meeting for members at 6 p.m. Tuesday at the Farm Bureau office. Laura Harmon, Illinois Farm Bureau Office of the General Counsel and Bill Bodine, IFB associate director of state legislation, will speak. ERCER — Farm Bureau will host a farm bill update 10 to 11:30 a.m. and an on-the-road seminar 12:30 to 2:30 p.m. Friday at Western Illinois University Quad City Campus. Call the Farm Bureau office at 5825116 for reservations by Thursday. • Farm Bureau will sponsor a defensive driving course 10 a.m. to 3 p.m. Sept. 23 and 24 at the Farm Bureau office. Doug Sommer, Sommer Safety Sessions, will be the instructor. Members 55 and older are invited to attend. Cost is $15. Call the Farm Bureau office at 582-5116 to register by Friday. • Farm Bureau will cosponsor a women’s marketing workshop from 9 a.m. to 3 p.m. Nov. 3 at Monsanto Agronomy Center in Monmouth. Naomi Blohn, Stewart-Peterson, will speak. Call
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the Farm Bureau office at 582-5116 for reservations by Oct. 27. Space is limited. EORIA — The Equine Committee will sponsor an equine workshop from noon to 3 p.m. Sept. 28 at the Heart of Illinois Arena, Peoria. Speakers will cover when to call a vet, proper hoof care, chiropractic care and equine massage therapy. This event is free and open to the public. Call the Farm Bureau office at 686-7070 for more information. • Farm Bureau will cohost a farm bill update meeting at 6 p.m. Thursday at the Farm Bureau Building. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 6867070 for more information. AYNE — Farm Bureau will co-sponsor a flu shot clinic from 1 to 3 p.m. Sept. 23 at the Farm Bureau office. Most insurance, Medicare and Medicaid will be accepted. Members will receive a free gift for participating. No appointment is needed. Call the Farm Bureau office at 8423342 for more information.
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“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity that is open to all members, contact your county Farm Bureau manager.
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FarmWeek • Page 14 • Monday, September 15, 2014
Economist: Big crops, bottlenecks could lead to basis issue BY DANIEL GRANT FarmWeek
What should farmers do with potentially the largest corn and soybean crops ever harvested in the U.S. this fall? Store as much as possible, says Frayne Olson, ag economist at North Dakota State University. Olson believes the potential for huge crops, transportation bottlenecks and limited bin space could pressure prices and knock basis (the difference between local cash prices and futures prices) levels temporarily out of whack. “I think the basis will suffer as we go into harvest just because of the sheer size of the crop,” Olson told FarmWeek. “The market will be flooded with grain.” The northern Corn Belt likely will be the epicenter of harvest basis issues as fewer local
markets make farmers there extremely dependent on exports and grain shipments. But farmers in the “I” states also could be frustrated by local cash bids for crops off the combine. Local cash corn prices in parts of the Dakotas and Minnesota already plummeted more than $1 per bushel below futures prices in recent months due to railcar bottlenecks. A shortage of railcars in the northern Corn Belt was caused in part by competition from the oil industry along with historically large wheat and canola crops harvested in Canada. “We’re in better shape than a couple of months ago. The number of past-due (rail)cars dropped substantially, and our basis levels are back in a normal range,” Olson said. “But if you think our problem is bad, look north of the border (to Canada). It (the railcar short-
Torrential rainfall halts harvest
The expression “when it rains it pours” certainly came to fruition last week. A midweek front dropped an impressive 3 to 6 inches of rain across a wide swath of central and northern Illinois from the Mississippi River to Interstate 57. Some pockets of the state, from Quincy to Springfield and north of that line, received as much as 6 to 8 inches. Most of the rest of the state last week received between a half inch to 3 inches of rain. Many farmers hadn’t started harvest prior to the deluge, but most who were in the field were forced to park their combines and take cover. The front also ushered significantly lower temperatures into the Midwest, including potential frost in the northern Corn Belt.
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) $37.50-$54.33 $45.67 40 lbs. (cash) $78.00-$84.00 $79.95 Receipts
This Week 91,213 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 75,234
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $96.38 $92.44 $3.94 $71.32 $68.41 $2.92
USDA five-state area slaughter cattle price (Thursday’s price)
Steers Heifers
This week NA NA
Prev. week $158.00 $158.84
Change NA 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 $227.74 $224.28 $3.46
Lamb prices Negotiated, wooled and shorn, 127-185 lbs. for 140-163.85 $/cwt. (wtd. ave. 155.64)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 9/04/2014 6.4 19.5 47.1 8/29/2014 1.7 28.4 34.8 Last year 2.5 33.1 10.0 Season total 2.9 259.6 28.6 Previous season total 1.8 345.1 8.2 USDA projected total 1600 1640 1920 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
age) is even worse there.” Transportation issues could resurface in the U.S. in coming weeks as farmers harvest record corn and soybean crops. But transportation won’t be the only issue. “I think we’ll have basis issues at harvest regardless of transportation issues,” Olson said. “We’ll have the size of the crop and range of quality to deal with, and we still have 2013 corn and wheat in storage, so the bins aren’t empty.
We’ll have a challenge finding a home for all this.” Farmers who find storage space for their crops should use it, though. Olson looks for fall price lows and basis issues to bounce back after harvest. “There’s a strong incentive to store as much as you can,” the economist said. “I think (the potential basis issue) will be temporary, maybe a 30- to 45-day event. I think we’ll see a post-harvest recovery.”
Price levels at harvest also will be influenced by how the crops finish the season. An early killing frost would be a “significant event” in the upper Corn Belt where crop maturity lags behind levels in Illinois and surrounding states. Olson last week said forecasts in the upper Corn Belt called for temperatures in the mid to upper 30s with patchy areas at or below freezing, but no widespread killing frost just yet.
Does corn supply drive copper prices?
(plantings, yield, production, etc.) of their specific commodity and ignore changes in transHow does corn supply drive copper prices? It commodity demand. doesn’t. But this is the implicit, indirect arguThey ignore demand, likely because they ment made by those who say that the large corn don’t know how to measure it, since it just supply is causing corn prices to fall. seems to move in line with supply. But that’s The fact is that all (or most) commodity because what they are calling demand — the prices are falling, not just corn. That’s number of physical units bought — because most commodity prices move in really is just supply, since what’s prosync over time regardless of their wildly duced is necessarily what’s bought (be it differing fundamentals. this year or next). No, demand is not So to say the large corn price collapshow many units buyers purchase. It’s es during the last year are caused by very how much is spent on the units as any minor changes in expected corn crop economic textbook will reveal. size during the same time period begs Analysts argue supply is the main the question — what caused the same driver when prices move lower (higher) falling prices across other commodities as supply is increasing (falling). But Kel Kelly like copper, many of which have seen when prices move in the same direction lower, not higher, supply levels? as supply changes and cannot explain price Most commodity prices move together because large volumes of money from investors changes — as was the case during the 20062011 commodities boom — people then argue outside the agriculture, metals or energy industries flow in and out of commodities over time. that the price drivers are world food demand and Chinese economic growth — explanations These outside spenders tend to buy and sell which make no sense and which have been commodities evenly across the board as they’re dropped as prices have fallen. investing in commodities as a class, not just in The moral of the story is demand changes corn or soybeans. (the amount of money being spent) are equally This spending, or demand, changes more or more important than supply changes. rapidly, and thus has more of an effect on prices over time than do supply or ending stock Kel Kelly serves as GROWMARK’s economic and changes. But specialists in each commodity submarket research manager. His email address is kkelly industry, be it copper or corn, always tend to @growmark.com. believe prices are moving based on the supply BY KEL KELLY
Run of rising cash rents could fizzle out in 2015
Average cash rental rates increased again in most portions of the state this year. A survey of about 10,000 farmers conducted by USDA’s National Agricultural Statistics Service (NASS) found average cash rent in the state increased from $223 per acre in 2013 to $233 per acre in 2014. This continues an upward trend as the average cash rental rate statewide increased 77 percent the last eight years. “The trend the last few years for the state and most counties has been an increase (in rental rates),” said Mark Schleusener, state statistician with the NASS Illinois field office. “It coincided with an increase in corn and soybean prices (from 2008 to 2013).” Three county cash rent estimates in central Illinois this year exceed $300 per acre, while most county averages in southern Illinois are at or below $150 per acre. “There is a considerable
range in cash rents across Illinois,” said Gary Schnitkey, University of Illinois Extension farm management specialist. The recent trend of higher rates could end next year, though, due to a considerable drop in commodity prices. USDA recently estimated 2014 net farm income will decline 14 percent from a year ago. The change in farm economics should generate more negotiations between farm tenants and landlords for the upcoming year. “Since commodity prices declined sharply, I’m sure land renters expect rent costs also will decline (in 2015),” Schleusener said. “But it’s up to the landlords and tenants to determine that.” A survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers recently found members predict cash rental rates for 2015 will decrease by an average of $33 per acre.
“Now that we’re looking at below-$4 corn, they (farm managers) are looking for rents to decline,” said Schnitkey, who conducted the survey. Schleusener thanked farmers for participating in the NASS survey and emphasized that all information remains confidential by law. He noted that, in some counties, there weren’t enough reports returned to publish a county cash rent estimate. There also are a few counties in which a tight concentration of cash renters prevents NASS from disclosing data that could be viewed as personal information. “We need a sufficient number of reports for statistical quality,” Schleusener added. “If we fail to meet the standard, we do not publish an estimate (for that particular county).” Visit the website {nass.usda. gov/il/} to view the Illinois cash rent report and each county estimate. — Daniel Grant
Corn Strategy
Yields may not get much, if any bigger
The adage “big crops get bigger” gets trotted out at the beginning of the series of USDA crop reports in years when the crop is a good looking one. Interestingly, a study by the University of Illinois on USDA corn/soybean crop reports tends to dispel that notion. This year, the details of the September USDA reports may tend to further dispel the belief. While the yield estimates may not get smaller, they aren’t likely to get significantly larger either. We already knew in August that USDA was starting with a relatively high corn yield forecast because of the ear count/ear weight data from that report. As expected, the new ear count was higher this month.
That shouldn’t change much going forward. And the “implied” ear weight was increased as well. It could still increase some, but probably not enough to lift the national yield over 174 bushels, if it increases at all. With soybeans, the “implied” pod weight is at a new record by a significant margin. In part, that may be a result of somewhat inflated producer yield expectations, which are a part of the “implied” weights (this applies to corn, too). It wouldn’t be unreasonable to see pod weights on future reports decline slightly from the current level. But pod counts tend to go up, countering any slippage in weight. In looking at the two yieldmaking ingredients, it looks to us like the current forecast could be reasonably close. It’s difficult to build the case for a significant increase, but we’d also doubt it might end up much lower.
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ü2013 crop: Even though corn prices broke to new lows again, the move down was more of a grind than a hard break. That fits with the “give up” action the first week of September. Prices should begin the process of building a base. In a few months, they will be significantly higher. At this point, if you still have old crop, storing it for the long haul will pay dividends. ü2014 crop: Indicators show the decline has been overdone to the downside. Higher levels will come over time. If you need to price corn by early post-harvest, use a move to $3.65 to make needed sales. If you need to move corn at harvest, make sure you have the basis locked up. vFundamentals: The crop is big, but the fundamental structure is not overwhelming. In 2008-09 prices rallied $1.50 off their low. The next year, they gained $1 from their fall low. Current low prices, coupled with profitability in livestock and ethanol, will rebuild demand, while discouraging production elsewhere.
Page 15 • Monday, September 15, 2014 • FarmWeek Cents per bu.
Soybean Strategy
ü2013 crop: Big old-crop premiums may persist as long as harvest gets delayed, but will evaporate as soon as activity becomes more widespread. ü2014 crop: November futures may not have seen a low yet, but downside risk should now be extremely small. While the big crop may cap upside potential, demand should still pull prices up into winter. Target a move to $10.50 to $10.80 on November futures to resume sales. Basis may be at its best during the next month. As futures rally, basis may weaken somewhat. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: These prices are already boosting demand prospects. The big crop, and talk of one in South America, may restrain gains. But they won’t be able to keep the market from moving moderately higher given the export business that has to be filled during the next few months. And even though acreage will increase, there’s no guarantee of big South American crops again.
Wheat Strategy
ü2014 crop: The fundamentals remain bearish, but Chicago wheat is finding support at $5. Producers that are comfortably priced, and able to carry wheat, should continue to target a move to $6 on Chicago December futures to make sales. ü2015 crop: A whole growing season is ahead for the winter crop. Better opportunities are likely for 2015 sales. vFundamentals: USDA’s September crop production
report predicts wheat ending stocks in the U.S. will grow to 698 million bushels in the 2014-15 marketing year. The agency raised its estimate for world wheat stocks by 6.6 million tons, while only upping usage by half that amount. The world is awash in wheat, but better feed demand and a scarcity of quality wheat have the potential to support prices going forward. U.S. export sales have picked up recently despite competition with cheaper supplies abroad. USDA projects higher exports for the European Union, Canada and Ukraine.
FarmWeek • Page 16 • Monday, September 15, 2014
Local leadership critically important for ag’s future Agriculture faces many challenges, and strong, effective leadership has never been more critical to the future of agriculture. To meet the nutritional demands of an everincreasing global population, we JOSEPH CASSADY must find guest columnist solutions to problems that limit our capacity for producing and transporting food. This will require visionary leadership and strong rural communities. Leadership can take many forms, and at times we fail to recognize the greatest leaders among us. We can all name leaders in high-profile positions, but much of the leadership that will shape the future of agriculture happens in subtle ways in local communities. It is the leadership of the farmer, rancher, manager of the local farm store, 4-H volunteer or ag teacher in the local community that many times has the greatest collective impact on the direction of that community. These are the individuals who will encourage our youth to pursue their interests in agriculture and allied industries. If the local leaders are positive and hopeful about the
future, youth of the community are more likely to be excited about opportunities to pursue a career in agriculture. I believe those youth will be more likely to remain in or return to those rural communities. Look around your own community. Are the members of your community excited about the future? Do they welcome new opportunities which may improve the future viability of the community? When new people move into the community, who welcomes them? How many years or generations does someone have to live in your community before the “locals” consider them “one of us?” Communities are constantly changing. Who are the true leaders in your community? Do they actively seek out opportunities that will lead the community to a brighter tomorrow? Many books have been written on leadership, describing style, effectiveness and alternative approaches. If you influence individuals in your family or local community, then you have the opportunity to provide leadership. In some cases, your willingness or unwillingness to lead may have a major impact on a community. Some people are
Illinois Farm Bureau Agricultural Leaders of Tomorrow (ALOT) class members join one of many team building activities as part of their leadership training. Left to right are: Brenna Hildenbrand and Clinton Charles, both of Ford-Iroquois Farm Bureau; Dustin Wright, Kankakee County Farm Bureau; Sarah Hastings, Champaign County Farm Bureau; and Tyler Rhode, McLean County Farm Bureau. (Photo by Ken Kashian)
reluctant to accept leadership roles because they are uncomfortable speaking in public, but these same people may lead more by their actions than their words. While agriculture faces many challenges, there are tremendous opportunities for the future. We have bright young people who are excited about the future and are seeking opportunities to pursue careers in agriculture. If those young people are not returning to your community, it may be time for leaders in the community to ask difficult questions regarding the direction of the community. Who is leading change in the community? Do they have
the community’s best longterm interest at heart? What leadership role do you take in your community? Look for opportunities to be a leader. Talk to your neighbors and youth in the community about the tremendous opportunities in agriculture. Agriculture needs visionary leadership and strong rural communities. Our future depends on it.
Joseph Cassady serves as professor and head of South Dakota State University’s Department of Animal Science. This column was first published in “Growing South Dakota,” a publication of the South Dakota State University College of Agriculture & Biological Sciences.
Farm Bureau offers leadership training Illinois Farm Bureau is accepting applications for Agricultural Leaders of Tomorrow (ALOT) through Nov. 16. Participants receive training and information about communication, the political process, agricultural economics, global issues, and IFB and the family of companies. Topics are designed for men and women of all ages. The 2015 weekly sessions will be held over nine weeks from Jan. 20 through March 19 in southern Illinois. For more information or to apply, call IFB training and development at 309-557-2207 or email training@ilfb.org.
What commodity trend waits ahead; how will you adjust?
Time to sharpen your pencils! We all knew it would happen sooner or later, but the time has come when crop margins are tight. Three-and-a-half-dollar corn and $9.50 beans seem to be the culprit. For the most part, the cost of inputs has been RYAN reluctant to follow the VOORHEES downward commodity trend. During the last few weeks I have been visiting with a number of farmer
peers. It seems that the reality of thin margins is really starting to set in. Eight-dollar corn and $15 beans are now a dream that looks to be over. The question is, “Where can expenses be cut?” As I have been visiting, I’ve heard the following strategies: plant more beans, plant beans following beans, decrease P and K applications for corn, delay equipment trades, shop retailers for the best prices. All are good strategies to consider, but each farmer will have his or her individual thought as to what works
best for their operation. I have been told by some seasoned farmers who have experienced tight times before that it is time to separate the needs and the wants. During the last few years, needs and wants have gone hand in hand. I have also heard a few people say that farms need to diversify like they were a few decades ago. Many row crop operators get nauseated by the thought of adding livestock to their operation. There is not one right answer, but hoping that corn and bean prices rebound to what they were two years
Explore details of Agenda 21
200 years ago. Farms will be large and government owned. If you haven’t heard of Agenda 21, please get informed. Also part of Agenda 21 is Common Core for our schools. This project punishes our industrious students by lowering their grades so less industrious students (whose grades are raised) will feel equal. The government, instead of local school boards, will choose subjects to be taught.
Agenda 21 also erases our freedom of speech and religion — please note provisions in Obama care that have nothing to do with health. The Internal Revenue Service being in charge of health care should frighten us into action to stop this at least until all the facts are known. Agenda 21 also erases gun ownership by law abiding citizens. Our founding fathers added the Second Amendment so citizens could protect
Editor: We are writing in response to the Aug. 25 FarmWeek article, “Farmers share concerns about ‘waters of the U.S. proposal.’” The Environmental Protection Agency wants to shut down all farms as part of Agenda 21. Agenda 21 is the United Nations being in charge of all nations — yes, including the U.S. The land is to go back to nature as it was
LETTER TO THE EDITOR
ago probably is not the best plan. I always try to find a bright spot, and as of now at least, Illinois does not have the grain transport issues they are facing in the western Corn Belt. I wish you a safe and bountiful harvest. Best of luck as you budget for 2015!
Ryan Voorhees of Washington represents District 7 on the Illinois Farm Bureau Young Leaders Committee. Keep up with the latest Young Leaders news by visiting {www.ilfb. org/get-involved/young-leaders}.
themselves from the government. If we are so safe, why do Chicago Mayor Rahm Emanuel, Gov. Pat Quinn and President Obama have armed guards? Check the writings of George Washington & Company. So, be very careful who you vote for this November. Please vote! If the wrong people are elected, the USA could disappear in two years. ED and SHARON K. DUNBAR Princeville