Farmers should prepare for long grain elevator lines based on the latest yield tour results. page 4
Dairy farmers can start signing up this week for the new federal Margin Protection Program. page 10
A dozen Illinois farmers take an IFB infrastructure tour of four grain shipping ports this week. page 5
Gubernatorial candidates stake ag, rural positions Monday, September 1, 2014
BY KAY SHIPMAN FarmWeek
The major gubernatorial candidates highlighted Illinois agriculture’s economic importance, and their ideas to support farming and rural Illinois while addressing state ag leaders last week on a Bloomington farm. In separate appearances, Democratic candidate Gov. Pat Quinn and Republican candidate Bruce Rauner shared their platforms with the Illinois Agricultural Legislative Roundtable and answered audience questions. Both candidates touted their support for infrastructure improvements as key to moving farm crops, ag products and livestock to market. “We’ve got to have worldclass infrastructure,” Rauner said.
Two sections Volume 42, No. 35
“We must have excellent transportation to get products to market,” Quinn stated. Asked about growth of the state’s livestock industry, both candidates gave their support. Quinn noted the Illinois Department of Agriculture (IDOA) reviews livestock facility applications — a number that has risen the last few years. He said he understands Illinois’ comparative advantage in livestock with feed sources and transportation. “We want to increase livestock facilities in a proper way” with permits reviewed by IDOA, Quinn said. “We want permits done in an expeditious manner for those who want to move forward.” Rauner spoke about livestock being a critical and important part of the ag sector
Gubernatorial candidate Bruce Rauner
Gov. Pat Quinn
and state economy. Some environmental issues and regulatory issues need to be addressed, he continued. “But we can be thoughtful and thorough. We can be prudent and still grow our livestock sector. I believe that strongly,” Rauner said.
offered specifics on sources of
National Corn Growers Association (NCGA) board. He recently was elected NCGA first vice president and begins that position Oct. 1. Key issues this season include transportation and building demand for the record crop, Elliott noted. He
hopes the federal government opts to use up to 14.4 billion gallons of ethanol in gasoline this year compared to proposals as low as 13 billion gallons. “Creating demand for corn (through ethanol use) has been big,” Elliott said. “We don’t need any roadblocks in
Both candidates spoke about the need to invest in education, although neither
U.S. senate candidates discuss ag issues — page 3
additional funding. Rauner criticized the state’s education funding formula and called for its revision that he said would result in more equitable funding. Quinn said the state needs to fund all schools — urban, suburban and rural, and he had maintained education funding and made payments to the teacher pension system during his years as governor. Both candidates addressed the issue of term limits. “I’m for term limits for all legislators as well as for myself,” Quinn said. Twice, he supported a state constitutional convention in 1988 and 2008 and supported term limits since ‘94, he said. The Illinois Supreme Court ruled
NCGA leader: Industry prepares for big corn crop this year
BY DANIEL GRANT FarmWeek
Periodicals: Time Valued
Harvesting a potential record corn crop looks to be just one of a handful of challenges for farmers this fall. They also could deal with transportation issues, tight storage space and steep drying costs if the crop turns out as bountiful, and wet, as some expect. “This is a big crop and probably a wet crop,” Rob Elliott, a
farmer from Monmouth (Warren County) told the RFD Radio Network® last week at the Farm Progress Show. “Our ability to handle it could be a bit more challenging (this fall).” He also believes this harvest season could be condensed due to late-maturing crops and potentially high moisture levels. “We’ve had cooler temperatures and a lot of moisture. This corn is not progressing quite at the rate we’re typically used to,” Elliott said. “It could be later September before people get a good start on harvest (in central Illinois) and maybe October before it’s in the heat of the battle.” USDA last month projected U.S. farmers will harvest a record 14.032 billion bushels of corn. USDA pegged Illinois’ corn yield estimate at a record 188 bushels per acre. Elliott, who grows corn, soybeans and runs a seed business, previously served as president of the Illinois Corn Growers Association and currently serves on the
See Gubernatorial, page 3
front of corn demand.” Elliott recently traveled to the Upper Midwest and saw firsthand the effect of transportation and logistics issues on crop prices and farmers’ bottom lines. See Crop, page 14
Dennis Reardanz, a Ludlow Cooperative Elevator Co. employee, moves corn from a 360,000-bushel grain bin at the co-op’s Buckley facility. Operations Manager Steve Myers said the co-op stands ready to receive a bumper crop, but anticipates storing 2 million bushels outside. (Photo by Ken Kashian)
www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, September 1, 2014
IDNR RELEASES HYDRAULIC FRACTURING RULES — The Illinois Department of Natural Resources (IDNR) Friday released revised rules for high-volume, horizontal hydraulic fracturing in the state. After the state Joint Committee on Administrative Rules (JCAR) reviews the rules, its members may state they have no objection, object or make recommendations to the proposed rules within 45 days. JCAR may seek an extension for the review process. The law establishes rules for well construction and casing standards. It specifies numerous environmental regulations, including setback requirements, water testing requirements, waste management procedures and other provisions designed to protect ground and surface water from contamination during the drilling operation and afterward. The law also institutes protections for surface landowners by specifying how land would be repaired from the time a well is drilled to after the well has served its useful life. It further establishes a severance tax on the oil and gas extraction, and a tax credit to provide an incentive for hiring Illinois workers who are paid at least the prevailing wage. The law, developed through negotiations, was supported by the Illinois Farm Bureau, the oil and gas industry, organized labor and environmental groups. FarmWeek will provide details in a future article. GMO LAW STRICKEN — A federal judge last week struck down Kauai County’s (Hawaii) GMO law, which requires companies to disclose their use of pesticides and genetically modified crops. U.S. District Court Judge Barry Kurren ruled the Kauai County ordinance unlawfully pre-empts state law governing pesticide use. “This decision in no way diminishes the health and environmental concerns of the people of Kauai,” Kurren wrote. “The court’s ruling simply recognizes that the state of Hawaii has established a comprehensive framework for addressing the application of restricted-use pesticides and the planting of GMO crops, which presently precludes local regulation by the county.” County officials have not yet decided whether they will appeal the ruling. WHITE COUNTY OFFERS CRIME REWARD — White County Farm Bureau members have tapped into the Illinois Farm Bureau Crime Reward Program after farmers filed 10 reports of damage and theft of copper wiring on grain bin electric meters. A $1,000 reward will go to any person who provides information to the White County Sheriff ’s Department that leads to a felony conviction in those cases impacting Farm Bureau members. In addition, White County Crime Stoppers offers a $500 reward. Any individual with information about this crime should contact the White County Crime Stoppers tip line at 1-800-6373577. All information regarding the identity of the informant is confidential. IFB will directly pay the reward money to the informant. CORRECTION — Congresswoman Cheri Bustos’ political party appeared incorrectly in a FarmWeek photo cutline Aug. 25. She represents the Democratic party.
(ISSN0197-6680) Vol. 42 No. 35 September 1, 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.
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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 firsthand look
Above, Dan Kelley and his son, Brian, explain their concerns about a proposed rule defining “waters of the U.S.” Left, Kelley shows Sen. Mark Kirk, R-Highland Park, how the proposed rule would affect his farming operation outside Normal. Illinois Farm Bureau President Rich Guebert Jr. (left) also helped explained farmers’ concerns to the senator. (Photos by Cyndi Cook)
‘Waters of U.S.’ concerns shared with senator BY DEANA STROISCH FarmWeek
Grass waterways on Dan Kelley’s farm near Normal provide erosion control and help keep the soil on his land. But under the proposed rule initiated by the Environmental Protection Agency (EPA) and the Army Corps of Engineers, the waterways and nearby roadside ditch would be considered “waters of the U.S.” and fall under federal jurisdiction. Kelley and his son, Brian, explained their concern last week to U.S. Sen. Mark Kirk, R-Highland Park, who visited the farm. “This seems like a very strong overreach by EPA in terms of putting additional
regulations in place when farmers themselves are doing most of the best practices we can to make sure erosion is minimized and make sure the waters of the U.S are safe,” Dan Kelley told FarmWeek. “Additional regulations are just going to be an extra expense and an extra burden.” The proposed rule could ultimately require the Kelleys to get a federal permit to put fertilizer or herbicides on fields that contain water conveyances. “I told the senator in the case of an insect like aphids, that can sometimes in three or four days significantly affect the yield of a soybean field,” Kelley said. “We don’t have time for a six-week permitting
process or even a two-week permitting process. We have to have the ability to protect our crops when they need protecting, to farm like we need to.” Kelley, a fifth-generation farmer, also told Kirk that a representative from EPA should come to the farm to see firsthand the impact of the proposed regulations. If the proposed rule becomes finalized, Kelley told Kirk the Senate should block the money needed to enforce the rule. Kirk told RFD Radio Network that he opposes the proposed rule. “To say that every puddle on your farm is regulated by EPA, I think, is a dramatic overstep by EPA,” he said.
Nominees sought for certified crop adviser award
The Illinois Farm Bureau and the Illinois Certified Crop Adviser (CCA) Board are accepting nominations for the Illinois Certified Crop Adviser Award. The deadline for nominations is 4 p.m. Oct. 3. The award recognizes an individual who has performed superior service for his or her farmer clients in nutrient management, soil and water management, integrated pest management and crop production. The award will be presented in December at the IFB Annual Meeting in Chicago. The winner will be recognized at the Illinois CCA Conference in Springfield. The state winner will be submitted to the Illinois CCA Board to
be considered for the International CCA Award. Eligible nominees must be certified crop advisers in Illinois and be nominated by a county Farm Bureau, an active Farm Bureau member or the employer of the CCA who has knowledge of the CCA’s qualifications. Other agricultural groups may suggest nominees. County Farm Bureaus have received information and nomination forms. Information can also be accessed at {www.ilfb.org/media/ 2025681/cca-2014-letter-forms-tips.doc}. Direct any questions to Lauren Lurkins, IFB director of environmental and natural resources, at 309-557-3153 or llurkins@ilfb.org.
Durbin, Oberweis address farm leaders
Page 3 • Monday, September 1, 2014 • FarmWeek
BY DEANA STROISCH FamrWeek
Agriculture leaders last week questioned two candidates for U.S. Senate about issues ranging from infrastructure funding and trade agreements to mandatory GMO labeling laws. The Illinois Agricultural Legislative Roundtable Candidate Forum featured U.S. Sen. Dick Durbin, D-Springfield, and his Republican opponent, State Sen. Jim Oberweis, RSugar Grove. The candidates spoke to farmers during separate appearances at the Tim Bittner farm near Bloomington.
Ag Roundtable candidate forum
The Illinois Agricultural Legislative Roundtable offered the Democratic and Republican candidates for governor and U.S. Senate a chance to address state ag industry leaders. Each candidate received 45 minutes to speak and answered questions from roundtable members. Candidates appeared separately from their opponents. After each presentation to ag leaders last week, candidates responded to media questions.
State Sen. Jim Oberweis
U.S. Sen. Dick Durbin
Durbin and Oberweis outlined their platforms and then fielded questions on various ag-related topics, including: • Funding infrastructure improvements. Durbin said a dedicated source of funds, such as a barge fuel fee, would help maintain U.S. waterways. Oberweis said he prefers tailoring user fees to pay for infrastructure improvements instead of increasing taxes. • Role of EPA under the Clean Water Act. Durbin spoke specifically on the proposed rule governing “waters of the U.S.” “I believe that we all should be good stewards of this
earth. But we also need to be honest and realistic. A heavy rainfall in McLean County and a stand of water that’s going to last, at most, one day back here shouldn’t lead to EPA inspectors on the property. That to me is an exaggeration of what we’re trying to achieve. I don’t think that the EPA with all the resources available, if they went at it full time, could inspect every farm pond in America — nor should they.” Oberweis said regulations are needed, but “extreme regulations” can be “destructive.” “We need balance in Washington to control that,” he said. “A Republican legislature,
chokepoints in meeting the need of freight and passenger rail users.” Durbin recently held meetings in Champaign and Chicago to discuss rail service delays and rail safety issues. He has called for renewed efforts to end rail service delays in Illinois for passenger trains and discussed additional steps the STB can take to alleviate safety concerns local officials have about the increased number of rail cars carrying crude oil and ethanol across the country. Meanwhile, problems at a port in the Northwest could clear soon as a tentative agreement was reached between the International Longshore and Warehouse Union and the Pacific Northwest grain terminals. However, Soy Transportation Coalition members said other transportation challenges remain. “Now that an agreement between the longshoremen and export terminals has been announced, the remaining and looming concern is the anticipated rail service challenges between the western states — North Dakota,
South Dakota, Minnesota, Nebraska, etc. — and the Pacific Northwest,” said Mike Steenhoek, executive director of the coalition. “Given the projected 2014
if the Republicans can take the Illinois Senate in November, will be balanced by a Democrat president, and we’ll end up with better legislation and better solutions to our problems. I think that’s the best thing for our country.” • Restoring funding in the Highway Trust Fund. Durbin said he’s “looking for a way to replenish the federal Highway Trust Fund in a sensible way that doesn’t discriminate against lower income families and doesn’t hit certain sectors of the economy especially hard. I have not come up with that solution yet.” Oberweis said user fees should be relied on if possible, but said the gasoline tax may need to be adjusted to reflect
the increased use of fuel-efficient vehicles. • GMO labeling. Durbin said he doesn’t support mandatory GMO label-
Continued from page 1 General Assembly referendum passage or constitutional convention action were the only avenues to enact term limits in Illinois, Quinn said. “We’ve got to get term limits in place,” Rauner said. “I will term limit myself in eight years. If the General Assembly passes a term limit referendum and puts it on the ballot, I will work hard this cycle and every cycle going forward ...
to support term limits.” The candidates differed sharply on the state budget. Rauner told reporters state government needs major restructuring, and he found $1 billion in “wasteful spending.” Rauner said he released his plan and would outline more details in the future. Quinn countered Rauner’s budget “doesn’t add up,” and the state can’t afford “radical cuts” for schools, universities and state agencies.
harvest and the anticipated inability of our freight rail system to absorb this harvest, we believe the situation can accurately be described as trying to attach a garden hose
to a fire hydrant. Many farmers in this area of the country could experience a substantial decline in profitability due to rail service challenges.”
Gubernatorial
FarmWeekNow.com
Go to FarmWeekNow.com to hear comments from candidates for governor and U.S. senator on important ag issues.
ing. He said scientific-based standards need to be established for descriptions such as “organic,” even for voluntary labeling. Oberweis said producers should be able to put labels on products describing products as “GMO-free,” but requiring labels on GMO products “is overreaching” and “going too far.”
Durbin urges monitoring of rail congestion status BY DEANA STROISCH FarmWeek
Given the record harvest expected, U.S. Sen. Dick Durbin last week urged the head of the Surface Transportation Board (STB) to make sure Illinois farmers can ship their crops across the country. “Illinois’ access to our water infrastructure has, to date, minimized the impact of the existing rail congestion, but we are already hearing from agriculture producers that are concerned they may not be able to secure adequate rail capacity — either in the form of cars, engines or physical rail — to move their crop into the market,” Durbin wrote to STB Chairman Dan Elliot. “I strongly encourage you to pay particular attention to how Illinois, our shippers, farmers and communities will be impacted by the anticipated record agricultural crop. “Given Illinois’ extensive rail network and the fact that one-quarter of all freight moves through Chicago, it is appropriate for the STB to encourage railroads to report any areas that could become
NELSON NABS SENATE HONOR
Sen. Mark Kirk, R-Highland Park, center, presented former Illinois Farm Bureau President Philip Nelson last week with the senator’s first annual “Farmer of the Year Award.” Nelson received the honor for “his countless contributions to Illinois, our economy and the livelihood of thousands of farmers throughout Illinois,” according to Kirk’s office. During a brief presentation inside Illinois Farm Bureau headquarters in Bloomington, Nelson thanked Kirk for the award and for his support on ag-related issues. “When you leave this post as president, you leave a lot of work behind,” Nelson said. “But I feel confident it’s in good hands.” (Photo by Cyndi Cook)
County corn yield estimates paint promising picture FarmWeek • Page 4 • Monday, September 1, 2014
BY DANIEL GRANT FarmWeek
Look for piles of harvested corn and long lines at elevators to be a common sight this fall if recent county crop yield estimates come to fruition. Results of crop tours released last week predict record yields in counties around the state. Participants of the Soy Capital Ag Services crop tour pulled 1,590 corn samples from 159 locations in McLean County and project a record average yield of 222.6 bushels per acre. The county yield estimate was the highest ever recorded on the Soy Capital Ag Services tour, which has been held every year since 1997, surpassing the average yield in McLean County in 2009 by a whopping 26.3 bushels. “McLean County has been blessed with some of the best conditions throughout a growing season we have ever encountered,” participants of the Soy Capital tour noted. The record yield estimate was based in part on a final plant population estimate of 33,400 per acre, which also set a new record for the tour.
Michael Cole, left, and Richard Kelley, White County Crop Tour participants, measure ear length and count kernel rows in a Mill Shoals Township field in northwestern White County. Yield estimates averaged 161.8 bushels per acre. The tour was sponsored by White County Farm Bureau, Wabash Valley Service Co. and Consolidated Grain & Barge. (Photo by Doug Anderson, White County Farm Bureau manager)
The countywide corn yield also could top 200 bushels in Sangamon County, where participants of the Sangamon County Farm Bureau crop tour project an average yield of 211.5 bushels per acre.
Elsewhere, participants of the White County Farm Bureau crop tour estimate an average yield of 161.8 bushels per acre. The yield estimate set a new record for the tour and surpasses the county corn yield
averages of 156.3 bushels last year and just 58.3 bushels harvested after the 2012 drought. “The milder summer has allowed the corn crop to mature without the added heat stress,” said Doug Anderson,
White County Farm Bureau manager. “Many areas of the county received timely rains throughout the summer that allowed the corn to pollinate the full ear and create a uniform ear length throughout the field.” Farm Bureau crop tours also found excellent yield potential in Coles and Bond counties. The average yield in Coles County was pegged at an impressive 187.38 bushels per acre (with a range of 119 to 244 bushels). The average corn yield in Bond County was estimated at 171.82 bushels per acre (with a range of 127 to 240 bushels). Statewide, the portion of crops rated good to excellent last week totaled 82 percent for corn and 78 percent for beans. Just 4 percent of each crop was rated poor to very poor with the rest in the fair category. Farmers expect corn harvest to begin around mid- to lateSeptember, later than normal compared to recent history. The portion of the corn crop dented last week was 48 percent, five points behind the five-year average.
Soy disease outbreaks threaten yield potential Soybean genetics fight SDS
Soybean yield potential likely took a hit in parts of the state in recent weeks. An outbreak of diseases, particularly sudden death syndrome (SDS) and Sclerotinia stem rot (white mold), continues to pop up in fields around the state. “We’re starting to see sudden death syndrome and white mold,” said Ron Moore, a FarmWeek CropWatcher from Roseville (Warren County) who serves on the American Soybean Association board. “It’s becoming more prevalent every day.” Symptoms of SDS include interveinal chlorosis and necrosis of the leaves (the veins remain green while the tissues between the veins turn yellow, then brown), Carl Bradley, University of Illinois plant pathologist, noted in the U of I’s Pest Management Bulletin. The symptoms look similar to brown stem rot. However, brown stem rot also causes internal browning of the pith in soybean stems, while SDS does not affect the stems, according to Bradley. Cool, wet weather after planting and recent rainfall proved favorable for infection and disease development. “August has been cool (with the exception of a five-day heat wave accompanied by high humidity) with heavy dew in the morning, which is a perfect environment (for disease outbreaks),” Moore said.
Sudden death syndrome outbreaks became more prevalent in recent weeks. Symptoms include soybean leaf veins that remain green while the tissues between the veins turn yellow and then brown. (Photo by Carl Bradley, University of Illinois Extension plant pathologist)
Unfortunately, no fungicide products currently registered are effective in managing SDS. The primary management method includes choosing the most resistant soybean varieties. “Some evidence has shown that high soybean cyst nematode (SCN) egg populations may also increase the likelihood of severe SDS,” Bradley said. “Therefore, managing SCN populations through resistant varieties and crop rotation may also reduce the risk of SDS.” As for this year, Moore and Jacob Streitmatter, a CropWatcher from Princeville (Peoria County), believe the disease pressure already removed the top end of soy yields in some fields. “Soybeans are dying due to sudden death,” Streitmatter said. “The top end (of yield potential) left weeks ago.”
USDA earlier this month projected Illinois soybean yields will average a record 54 bushels per acre. “Hopefully, it’s late enough in the season it (the disease outbreak) won’t have a huge impact on yield,” Moore said. Areas in the northern half of the state that were cooler and wetter than normal after soybeans began to flower could be affected most by white mold, according to Bradley. He noted that once white mold signs and symptoms are detected in a field, fungicide applications generally prove futile. Growers with severe levels of white mold could encounter some discounts at elevators this harvest due to high levels of foreign matter, Bradley added. — Daniel Grant
Cool, wet conditions at planting can put soybean crops at risk for sudden death syndrome (SDS). That’s why University of Illinois researchers continue to evaluate soybean genes resistant to the yield-robbing disease. Though some SDS-resistant genes have already been identified by soybean breeders, Lillian Brzostowski, U of I crop sciences graduate research assistant, said researchers want to find which genes provide the most resistance when incorporated into multiple genetic backgrounds. Fusarium virguliforme, the fungus behind SDS, is a soil-borne pathogen that infects soybeans early in the season. That makes methods such as tillage, crop rotation or fungicides ineffective at limiting disease symptoms. “Once this fungus colo‘The hope is that nizes the roots, there is no maybe we can find spray for it. There is no quick fix. Once your plants multiple genes are planted in the field, which could be there’s nothing you can do stacked together.’ about it,” said Brzostowski. As part of the U of I study, three genes known to confer some resistance were — Lillian Brzostowski U of I crop sciences incorporated into multiple, research assistant high-yielding lines representing different maturity groups. Lines were planted in Urbana, southern Illinois and Michigan. Through the trials, the researchers have confirmed a gene that would be a “good candidate” to use in improving SDS resistance. The gene was grown and observed in trials both in Urbana and Michigan in 2012 and 2013. If the gene continues to show success across multiple environments, researchers will start incorporating it into breeding material. “The hope is that maybe we can find multiple genes which could be stacked together,” Brzostowski said. SDS ranks as one of the top five causes of yield loss, disease-wise, in soybeans. If a crop gets infected with the disease, Brzostowski said yield losses could be anywhere from 5 percent up to 80 or 90 percent with typical losses of 15 to 20 percent.
IFB’s annual Infrastructure Study Tour under way
Page 5 • Monday, September 1, 2014 • FarmWeek
Twelve Illinois farmers will travel throughout the south this week to learn firsthand about U.S. port infrastructure needs. The 2014 Illinois Farm Bureau’s Infrastructure Study Tour kicked off Aug. 30 and ends Saturday. This year marks the first time IFB’s annual tour focuses on sites within the United States. Stops include heavily-used ports in Texas, Louisiana, Georgia and Virginia. “We decided to stay in the United States and focus on infrastructure issues and priorities this year because ongoing investment and improvement in these areas is of critical importance to farmers, the ag industry and indeed the entire U.S. economy,” said Tamara Nelsen, IFB’s senior director of commodities. “Our trading partners have invested or are investing billions of dollars in their infrastructure
systems. Meanwhile, U.S. agricultural exports have tripled in the past 10 years, and we still rely on nearly 90-year-old locks and dams on our waterways.” Nelsen leads the annual tour. “Our hope for the tour is threefold — first, to draw attention to the needs of the U.S. infrastructure system; second, to broaden IFB’s contacts and coalition partners for infrastructure improvements; and third, to develop a group of farmer leaders who can speak with authority on river, rail, highway and other infrastructure issues, and assist with future legislative priorities in these areas.” Farmers selected for the trip include: Larry Beck, White County; Paul Beisiegel, St. Clair County; Nelda Burnett, Massac County; Dave Carr, Macon County; Rock Katschnig, Henry County; Jeff Kirwan, Mercer County; Jim Malley, WarrenHenderson counties; Brian Niemann, Montgomery County;
J.C. Reitmeier Jr., Champaign County; and J. Larry Miller, IFB director from Franklin County. Ron Pierson and Chet Esther from GROWMARK and Scott Sigman of the Illinois Soybean Association also will attend. Kirwan raises nonGMO grain in Mercer County, most of which is exported from New Orleans. He visited locks in Panama during a vacation last year, and wanted to learn more about our country’s infrastructure system. He currently serves as president of Mercer County Farm Bureau. “I think the tour will help me understand how our grain travels from my farm to its final destination,” he said. Burnett hopes to learn more about infrastructure, which she said would help her in her role as a farm wife and member of her community. She recently began serving on the MassacMetropolis Port District Board. “Massac County is blessed to have many miles of access to
Corn farmers face two important questions with the upcoming harvest — store unsold corn on the farm or at a commercial facility, and price stored corn for later delivery or store it unpriced. According to University of Illinois ag economist Darrel Good, the price of corn stored for later delivery needs to exceed the cost of storage. The cost of storage includes interest on the value of the stored crop and the magnitude of out-of-pocket costs to store the crop. For forward cash sales, Good said the differences between forward bids for alternative delivery dates and the spot bid can be compared to the cost of storage to determine the returns to storage. Those costs will likely be higher for off-farm storage than for on-farm storage
because overhead costs of existing on-farm facilities would not be an out-of-pocket cost. “A producer who thinks the basis will be stronger than currently offered could also calculate the likely return to storage from hedging and then selling the crop at a stronger basis level,” Good said. According to Good, basis levels and basis patterns vary considerably by location, so an example of the likely returns to storage representative of all locations is not possible. “Harvest basis differences are especially large this year as cash bids reflect a tremendous variation in storage capacity, expected crop size and transportation issues,” Good said. In addition, Good said the corn market is currently encouraging storage of the 2014 corn crop, and that deci-
sion could be made now with forward sales or by hedging in the futures market. With expectations of a very large crop, however, the opportunity to capture a return to storage is not expected to disappear as the market will likely continue to offer positive returns to storage into harvest time. The
BY DEANA STROISCH FarmWeek
the Ohio River, several rail lines in place, plus a major highway, Interstate 24, crossing through it. Yet, getting our crops and products out to market can still be a challenge,” she said. “Perhaps some of what I learn will be helpful not only for our farmers but also for others in business and industry, and motivate us all to speak up
and speak out about the need for maintaining our infrastructure in order to keep America competitive in this world market.” Niemann, who farms in Walshville, previously visited a port in New Orleans and wants to see more of the country’s infrastructure system. He is a member of Montgomery County Farm Bureau. “I just hope to learn a little more about where everything goes and how it gets there,” he said. “Everything we raise here on the farm goes down the river or down the rail and ends up at a port somewhere other than what’s here in the state. I want to know more about the whole container aspect of it. “Mechanically, we think a combine is a huge piece of equipment, but it’s nothing compared to what happens to our ports and our infrastructure as a whole.”
question then is whether additional quantities of the crop should be sold at current price levels. “After harvest, corn prices will be influenced by the strength of demand and the pace of consumption,” Good said. “Corn consumption should be supported by a combination of strong domes-
tic demand and the lowest prices in more than four years. If that is the case, corn prices would be expected to move modestly higher after harvest in a typical large-crop pattern. “While there is still risk of lower prices, a little patience in pricing additional quantities of the 2014 corn crop appears warranted.”
Deana Stroisch
FarmWeek Agricultural Policy Editor Deana Stroisch is accompanying the group and will provide reports on the trip on {Farm WeekNow.com} and in upcoming issues.
Farmers: consider corn storage, marketing decisions
Lipe Orchards hosting meeting The University of Illinois Extension and Lipe Orchards near Carbondale offer a fourth and final twilight meeting from 6 to 8 p.m. Sept. 15. The registration deadline is Sept. 14. Fourth-generation owners Laura and Sara Lipe continue production on the family orchard and use different marketing techniques to expand their business. They grow a variety of crops along with peaches, apples, pears, plums and nectarines. They also sell grilling wood chips, cider, chestnuts, jams and vegetables. The Lipe family markets products online. The evening’s topics will include orchard management, sorting and packaging products, and marketing. To reach the orchard, drive south on U.S. 51 to South Illinois Ave. Turn left and follow South Illinois Ave. (also known as Old Highway 51) for two miles. The Lipe roadside stand is located on the left. No registration fee will be charged, but participants should preregister. Register online at {web.extension.illinois.edu/ fjprw/}. For more details or to register by phone, call Nathan Johanning at 618-687-1727 or email njohann@illinois.edu.
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FarmWeek • Page 6 • Monday, September 1, 2014 Bernie Walsh, Durand, Winnebago County: We had another good week of occasional rain and warm, sunny days. Three rainy days added up to another 1.5 inches last week, and it was all soaking in. There was some wind damage with trees and corn blown down in a narrow band straight west of Rockford Monday (Aug. 25). Other than that, it was ideal weather to help finish filling the corn and beans. We are in the process of planting our cover crops, which include cereal rye, crimson clover and radishes on the fields where we grew wheat this summer. Hope we can get it done before it gets too wet again. Have a good week. Pete Tekampe, Grayslake, Lake County: We received a little more than 2 inches of rain in two events. Early corn has a yellowish color to it. Late corn has a great, dark green color. There is some sudden death syndrome in the beans, but right now most of the beans look great. There is a lot of second cutting hay to be made yet. I’m waiting for a window to cut my third, and it needs to be cut now. Leroy Getz, Savanna, Carroll County: Storms came through this part of Illinois on four occasions last week. I had 2.1 inches of rain, but other areas had much more. Parts of Whiteside County had as much as 2 inches in 20 minutes with 75 mph winds on Monday (Aug. 25). Very little hail, but the strong winds and rain did lots of damage to the corn. Most fields of corn still look excellent, but a few bad ones really show. In a three-county drive from the windshield, I have never seen fields look any better. Rain and warm days have brought the hay and grass back to life. One of the most dreaded weeds is the burcucumber, and I have seen roadside fences hanging full of this weed. It is too late to spray now since the seeds are already there. Ryan Frieders, Waterman, DeKalb County: The past two weeks have flown by very quickly. The kids are back in school, and every day has been filled. Labor Day weekend was a welcome break. The crops received about 1.5 inches of rain. They are very slowly maturing, mainly due to a lack of heat this summer. Harvest is still a while away. If you have any free time, the Sandwich Fair starts Wednesday. It is always a fun time before fall work begins. Larry Hummel, Dixon, Lee County: An inch of rain and more in the forecast should help finish this year’s crops. There has been a lot of talk about recordbreaking crops, but I’m not seeing it here in northern Illinois. Don’t get me wrong. I think we will have good yields, but there have been too many things that have been whittling away at the top end. The latest are Goss’s wilt in some of the corn, and sudden death syndrome and a little phytophthora in the soybeans. We were also spraying a field of soybeans for aphids. Populations were the highest in areas that had some of the best looking beans. After experiencing the damage they can do back in 2003, I definitely want to stay ahead of them. Ken Reinhardt, Seaton, Mercer County: We are finally getting rain. While amounts varied quite a bit, 2-inch totals since last report were common. It was a little late for the corn, but soybeans were recovering nicely. I noticed some sudden death in soybeans when I left for the GROWMARK annual meeting. I’m sure it will look worse by the time I am back home. I saw lots of sudden death on the way to the Farm Progress show last Tuesday. Ron Moore, Roseville, Warren County: We received .6 of an inch of rain Thursday afternoon. That just adds to the moisture for the soybean diseases that are becoming a concern now. Sudden death syndrome, white mold and brown stem rot are reducing our yield potential. Corn is starting to look like it is drying down normally at this point. We should start chopping silage in about two weeks or so. The last cutting of hay needs to be done soon also.
Jacob Streitmatter, Princeville, Peoria County: Hot weather finally pushed the crops along. Soybeans seem to have taken it badly. Sudden death syndrome is showing up in almost all soybeans. This has to cut yield quite a bit. Some corn looks outstanding, but other hybrids look sick, riddled with disease, and basically, dead. Harvest is still weeks away for most people. Mark Kerber, Chatsworth, Livingston County: Thunderstorms rumbled through a few different times last week, giving us more than 6 inches of rain. The ground soaked it up as creeks didn’t even rise. This should fill out the soybeans and keep corn healthier for proper dry down. The buzz words around the county are white mold in soybean fields. Some varieties of beans are more susceptible than others. Farmers are getting fall machinery ready and trying to stay ahead of mowing roadsides. Everyone is in a better mood after receiving rain. Markets aren’t doing much. Have they bottomed out? Ron Haase, Gilman, Iroquois County: During the last seven days, we received a range of 3.2 to 4.1 inches of rain. Now, we would prefer sunshine and dry weather, but more wet weather is forecast. Corn development ranges from the R4, or dough stage, up to R5, or dent stage. The furthest developed corn has the milk line two-thirds of the way down the kernel. Most soybean fields are at R6, full seed stage. Soybean fields are still green. Some fields have some areas beginning to turn due to disease. After the rain, the crops look to be ready to produce high yields. It is just a matter of how high they will be. The local closing prices for Aug. 28 were nearby corn, $3.51; new-crop corn, $3.31; nearby soybeans, $12.69; new-crop soybeans, $9.95. Brian Schaumburg, Chenoa, McLean County: Rainfall between 1 to 4 inches last week may have put the finishing touches on this crop. The milk line is more than halfway down on most corn, and some is black layered. Soybeans are just starting to turn on some Group II maturities. Harvest is two to three weeks away on both crops. Disease is a concern. Good to see all the folks at the Prairie Central Co-op annual meeting. Corn, $3.61, fall, $3.38; soybeans, $12.56, fall, $9.99; wheat, $5.02. Steve Ayers, Champaign, Champaign County: The tropical paradise continued last week, and the muggy meter was bouncing around 70 through Labor Day with occasional showers totaling 1 inch. We identified a fungus among us in the form of sudden death syndrome in a couple soybean fields. It started with a few spots with graying, crinkled leaves, turned yellow, then brown quickly. There are reports of sudden death syndrome, white mold, phytophthora and charcoal rot. Urbana hosted its Sweetcorn Festival last week and Hoopeston hosted its festival Labor Day weekend. So, lots of sweet corn being devoured in the neighborhood this time of year! Jimmy Ayers, New City, Sangamon County: We had anywhere from 1 inch, which was about the minimum for the county, up to almost 6 inches of rain in three or four events. During the storms, we had a pretty sizeable amount of corn blow down in the area. The corn is extremely tall. I was in several fields that had ears 6 1/2 feet off the ground. There is going to be some risk going into harvest with the corn standability. Combines started to roll. Moisture was 25 to 35 percent reported from the elevator. We have a yield that appears to be within the range of the Farm Bureau report (183 to 268 bushels per acre). Sudden death syndrome is showing up in beans. Very few beans have started to turn, but there are a lot of pods. There was some hay put up between the rains.
Wilfred Dittmer, Quincy, Adams County: This report could just as well be a copy of last week, other than the fact that a lot of soybeans are looking spotted from sudden death syndrome. It all came about rather quickly with some brownish spots appearing and then just spreading out into the main fields. So, that big crop of beans that is forecast may be shrinking. Corn still looks good from the windshield with hopefully no surprises to come later. August rainfall here stands at 5.3 inches — quite different from most years. Have a good week. Carrie Winkelmann, Tallula, Menard County: A storm blew through Thursday night and dropped .67 of an inch of rain at the house. Those I talked to east of us in the county all received about 2.5 inches. Corn looks just as good as it ever has. However, there are a lot of fungal diseases showing up in the beans. Some early bean varieties are really turning. Haven’t reported about the garden lately. I think my father-inlaw grew the best tomatoes I have ever tasted in my life. My husband’s giant pumpkin is definitely giant. My popcorn looks as good as the field corn. Tom Ritter, Blue Mound, Macon County: We had more than 2 inches of rain last week. No more moisture needed at this time. Corn continues to dry down, and a lot of shucks and ears are starting to dip downwards. I don’t know if we will see any corn picked in the coming week, but definitely the week after. Soybeans are also starting to dull down. I am starting to see a little yellowing of leaves, and a lot of diseases are starting to kick in. Overall, farmers are trying to get things wrapped up as far as preparation for harvest. Anticipation of lots of loads of corn and soybeans. Yields will look very good. Doug Uphoff, Shelbyville, Shelby County: Topic around here is sudden death syndrome. It’s quite prolific and showing up mostly in our earlier-maturing soybeans. Corn is getting close to black layer. I saw three combines picking 100 miles west of here. We are getting closer, but that stuff looked like ours when we use to start cutting silage, maybe a little greener. Corn rootworm beetle numbers are extremely high in the cornfields. Have a good week, and be safe out there. David Schaal, St. Peter, Fayette County: Since last report, we have received three rain events totaling 1.3 inches. There are places in the county that acquired almost three times that amount. Not too often in August that you wish it would almost quit raining. On Thursday, Fayette County had its annual crop survey. Our corn yields came in at an average of 176.14 with a range of 118 to 242 bushels per acre. Soybeans had a range of 30 to 68 with an average of 45.67 bushels per acre. That evening, members enjoyed a steak dinner. Hope you all had a great Labor Day weekend. Jeff Guilander, Jerseyville, Jersey County: Fall is finally here. Some early corn is getting close to harvest, but the bulk is right around black layer. Still looks like it will come in close to last year’s yields or slightly better. Sudden death continues to spread rapidly across the beans. The late mid-season and early full-season beans are taking the brunt of it for now, but it is moving into the later beans as well. This bean crop is a long way from the bin, and in a lot of cases more than 50 percent of the field is affected. Every company has a theory, but answers are pretty thin. Hope it has peaked and won’t get much worse. Dan Meinhart, Montrose, Jasper County: It was a very hot and humid week. The area received .2 of an inch of rain to 1 inch Wednesday evening. The soybeans are taking a second growth with double crops catching up with the regular beans. Silage chopping started on the April-planted corn. Mowing road ditches and waterways continues along with cleaning out grain bins and repairing machinery for harvest.
Page 7 • Monday, September 1, 2014 • FarmWeek Dave Hankammer, Millstadt, St. Clair County: Summer heat made a scorching return last week with a heat index as high as 105 degrees. Spotty showers and storms passed through the region during the week. I received 1.9 inches of rain, while other areas received little to none. Most of the field activities have been hay and corn silage harvest. The challenge to making hay this week has been the high humidity. There seemed to be a few hours in the afternoon when the moisture level in the drying hay was suitable for baling. Soybean plants have been filling out seed pods due to the moisture and heat. Several fields have been showing symptoms of sudden death syndrome. A spotty area of browning leaves suggest a host of problems in those areas from insects to soilborne issues. Be careful while working in this heat, and don’t forget the water jug while you are in the field. Local grain bids are corn, $3.57; soybeans, $10.72; wheat, $4.64. Rick Corners, Centralia, Jefferson County: It looked to be a record-setting bean crop and now the SDS has hit. Never have seen SDS as bad as it is in some fields. Don’t know whether the 2-inch rain we had Wednesday night will make it worse or not. I have never seen the grass as green as it is this August. Just hope we don’t have an early frost. The early-planted corn is really changing colors.
Kevin Raber, Browns, Wabash County: The Wabash County Farm Bureau did its annual crop tour last week. The county estimate for corn was 168.5 bushels per acre. The yields look very good, but the fields I checked might have some quality issues by harvest. Several surrounding counties have also done yield estimates with most showing excellent yields. The hotter days have helped move maturity and dry down along. Some people are hoping to start harvest on Sept. 15. Dean Shields, Murphysboro, Jackson County: No rain in our area of Jackson County last week. Soybeans could use a good rain. Corn picking will start in the next week or two. Farmers are spending most of their time getting ready for harvest. I hoped to get to the DuQuoin State Fair last weekend to look at all the new equipment.
Randy Anderson, Galatia, Saline County: After a week of working in conditions like a sauna, we received 1.5 inches of rain Thursday evening. Some parts got a trace up to 2.5 inches. With all the heat, the double crops are starting to look good, and more early-planted beans are showing signs of diseases like sudden death syndrome. Cut the last of our hay last week. Most producers I talk to think they will try to start on corn around Sept. 20, but there will be some shelled in the first of the month. Ken Taake, Ullin, Pulaski County: We had highs last week in the mid- to upper-90s with the humidity making it feel like the low to mid-100s. Corn is starting to dry down. I think some people may start harvest within the next week or so. We are probably about two weeks from trying some of our corn. We had more than an inch of rain Thursday afternoon, which will certainly help the soybeans. They are really green and looking good for this time of year. The only drawback? Sudden death syndrome and a little bit of brown stem rot is starting to show up. The corn is showing some of the ear rots. I don’t think it’s too bad yet, but it is something we will have to watch. The main activities going on right now are mowing and getting ready for the upcoming harvest. Please take time to be careful as we enter into this very busy season.
Farmland values soften; price pressure could continue BY DANIEL GRANT FarmWeek
Farmland values in Illinois were steady to slightly lower the first half of this year, according to a sur vey released last week at the Farm Progress Show. The Midyear Land Values Snapshot S u r ve y c o n ducted by the Gary Schnitkey Illinois Society of Professional Farm Managers and Rural Appraisers showed prices paid for Illinois farmland softened between 2 percent and 4 . 1 p e r c e n t f r o m Ja n u a r y through July. “Farmland prices are flat to s l i g h t l y d ow n ,” s a i d G a r y Schnitkey, University of Illinois
Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.
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Visit FarmWeekNow.com and listen to Gary Schnitkey’s comments on Illinois farmland trends.
Extension farm management specialist, who conducted the survey. “But while we found a softening of the market, there’s no major downtrend.” The average price for excellent quality farmland as of July 1 inched down $200 from a year ago to an average of $13,000 per acre. Good quality values the past year slipped $500 to $10,700 per acre, while the value of average farmland declined $400 to $8,600 per acre. Current far mland prices, obviously, remain historically high, despite the recent downturn in crop prices and subsequent drop in far m income
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expected this year and in 2015. “We’re probably out of the period of high-rising prices we had from 2006 to 2013 to a flatter period,” Schnitkey said. “But we’re not looking at any large decline in farmland either.” Farm managers point to the drop in crop prices as the primary driver of softer land values. Local farmers remain the primary buyers of land, according to the farm management specialist. Survey respondents expect corn prices to average $3.75 per bushel for the 2014 crop year. “The other thing that’s going on is interest rates are beginning to rise,” Schnitkey said. “That could put downward pressure on farmland prices.” Schnitkey anticipates far mland values will be f lat or slightly decline for
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at least the next year. The trends in crop markets and farmland values likely will affect cash rental rates as well. “Now that we’re looking at below-$4 corn, they (farm managers) are looking for rents to
decline,” Schnitkey said. Survey respondents predict cash rental rates for 2015 will decrease by an average of $33 per acre. For more information visit the website {ispfmra.org}.
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The most people, on the ground, in Illinois, covering Illinois agriculture for you. Get to know Dan Grant
FarmWeek Senior Commodities Editor & FarmWeekNow.com contributor ®
Dan provides you with timely production and economic data to help bolster your bottom line. He puts a face on the industry, and makes a point to seek out Illinois farmers when on his beat so that you help tell the story. Dan was an early adopter of social media and readily but carefully taps into that rapidly evolving information resource too. So, follow Dan on Twitter, @FarmWeekNow.
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Local governments aplenty surface efficiency, effectiveness questions
FarmWeek • Page 8 • Monday, September 1, 2014
BY KAY SHIPMAN FarmWeek
The state’s No. 1 ranking for the nation’s most local governments led some Farm Bureau leaders to consider the most efficient and effective way to deliver tax-supported services. “It (the exact number) depends on who you’re asking. But no matter who you ask, we have a lot of local governCarol Portman ments,” said Carol Portman, president of the Taxpayers Federation of Illinois, a nonpartisan government fiscal and tax policy organization. Illinois Farm Bureau’s Local and State Government Strength with Advisory Team (SWAT) last week heard an overview of local governments in Illinois and current efforts for cooperation and consolidation among them. Illinois taxpayers support anywhere from 5,976 to 8,461 local governments. During the last 10 years, that number
decreased, most notably in fewer school districts due to consolidation, Portman noted. However, the questions about what to do with local governments bring no simple answers, according to Portman. Local governments may be more responsive to taxpayers’ needs and act more quickly than their larger counterparts. If administered correctly, local governments may be connected closely with constituents and provide opportunities for them to be involved. On the other hand, local governments may duplicate services provided by others, and be inefficient and expensive. Local governments’ sometimes narrow focus may not prioritize taxpayers’ needs overall. Portman summarized a 2014 report by the Local Government Consolidation Commission. Simply reducing the number of local governments doesn’t save taxpayers. Instead, cooperation and consolidation may lead to greater economic efficiency and effectiveness, she pointed out. The issues vary and remain
complex. In one case, the General Assembly had to pass a law allowing the disbanding of a local hospital district even after the hospital closed and paid its bond. Currently, DuPage County officials are considering potential savings of local governments. State law passed, allowing them to do so.
Another state law allows annexation and consolidation of a variety of local governments if approved by voters via referendum. Farm Bureau leaders asked Portman about available resources to help local government officials become more effective. She agreed such information would be helpful, but was not
aware of any “best practices” resources. One SWAT member suggested grant stipulations requiring cooperation among local governments. “We respond to incentives. That has to be encouraged,” he said. “The nice thing about Farm Bureau members, you tend to be more aware, understanding, and serve on these board and authorities,” Portman said.
ty wealth increases and a poverty grant based on the proportion of low-income students. Under the current funding system, districts rely heavily on local property taxes, according to Robert Wolfe, chief financial officer with the Illinois State Board of Education (ISBE). This system explains “why in this state your zip code matters when it comes to funding education,” Wolfe told members of Illinois Farm Bureau’s Local and State Government Strength with Advisory Team (SWAT) who met in Bloomington. Of $6.8 billion in the current ISBE budget, less than half of the funding was distributed through a formula that measured a district’s ability to generate tax revenue, Wolfe noted. This year, the per-student funding level, known as the foundation level, was calculated as $6,119 per student. However, the state budget didn’t cover the full amount, so ISBE prorated districts’ funding at 90 percent of the foundation level, Wolfe said. During the legislative session, the Senate passed SB
16, sponsored by Sen. Andy Manar, D-Bunker Hill. That bill proposed to create one formula to distribute state funding based on a district’s wealth. The proposal includes a hold-harmless provision that caps funding losses during the first three years of a new formula.
State serves complex school funding formula BY KAY SHIPMAN FarmWeek
Illinois’ system for funding public education remains complicated, although efforts to simplify it continue, Farm Bureau leaders heard last week. The state distributes general revenue funds to a school district after calculating a formula grant, Robert Wolfe which decreases state funding as local proper-
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ISBE did not take a position SB 16, Wolfe noted. SB 16 passed in the Senate, but needs to move in the House during the fall veto session to remain viable, Wolfe explained. While the bill would develop a new distribution formula, it doesn’t address adequacy of education funding or “put more money in the pot,” he noted. Wolfe posed a couple of questions for Farm Bureau leaders to consider: “Your zip code matters. Is that good policy in the state? The state contributes a third of the (funding) pie. Are we doing it in an equitable manner?”
IDNR taking applications to help plug abandoned oil and gas wells
Private landowners in Illinois may receive funding to plug abandoned oil and gas wells on their land, Illinois Department of Natural Resources (IDNR) Director Marc Miller announced recently. IDNR’s Office of Oil and Gas Resource Management, which administers the program, is accepting applications from qualified landowners. “The Landowner Grant Program is an important cooperative effort between private property owners and the IDNR, which helps individuals to return their property to its original use,” Miller said. Plugging refers to the process of removing production equipment and decommissioning a well no longer in use by sealing the well. Usually, the process involves filling the well with cement and drilling mud to a prescribed depth, and restoring the well site to its preproduction condition. For detailed information on the process, a list of eligible wells and a copy of the application, visit {www.dnr.illi nois.gov/OilandGas/Pages/ProgramsandRegulations. aspx.} Applications also are available by contacting the Office of Oil and Gas Resource Management, IDNR, 1 Natural Resources Way, Springfield, IL 62702-1271. The phone number is 217-782-7756.
Page 9 • Monday, September 1, 2014 • FarmWeek
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USDA: Dairy margin insurance enrollment begins this week FarmWeek • Page 10 • Monday, September 1, 2014
BY DEANA STROISCH FarmWeek
Farmers can sign up for dairy margin insurance for 2014 and 2015 starting Tuesday, Agriculture Secretary Tom Vilsack announced last week. Enrollment ends Nov. 28. The voluntary program, formally called the Margin Protection Program, gives farmers a chance to protect their margin between the national average all-milk price calculated by USDA and the national average cost of feed. Producers pay a $100 annual administrative fee to enroll. They must remain in the program through 2018, but have the chance to select a different coverage level each year. During a conference call with reporters last week, Vilsack, U.S. Sen. Patrick Leahy, D-Vt., and Rep. Peter Welch, D-Vt., urged farmers to enroll in the program. “Dairy prices are very high right now,” Leahy said. “They’re comfortable. Dairy exports are strong. But you only have to have a 1½ to 2 percent surplus, and every
dairy farmer knows that can go into a tailspin. “For $100, it is a great
‘At $100, it’s a nobrainer to sign up for the program.’ — Jim Fraley Illinois Farm Bureau livestock program director
investment,” he said. Illinois Farm Bureau’s Jim Fraley agreed. “At $100, it’s a no-brainer to sign up for the program,” said Fraley, livestock program director. “The question becomes: ‘At what level?’ High prices today are going to limit interest in the program — but it won’t always be the case. The reality that lower prices will return will keep MPP a viable risk management tool for dairy farmers.” What farmers should know about the program: • The cost of feed is determined by a “typical” dairy
ration of hay, corn and soybean meal. • Basic coverage protects 80 percent of production. Production is based on the highest annual production total in 2011, 2012 or 2013. • Basic program at $4 of margin coverage is free. Additional insurance can be purchased — for a maximum of $8 total — at 25 percent to 90 percent of the previous year’s milk production. During the first two years of the program, premiums will be reduced by 25 percent for all coverage levels except the maximum level of $8, and only for dairymen that produce fewer than 4 million pounds a year. The 2014 farm bill also established the Dairy Product Donation Program, which authorizes USDA to purchase and donate dairy products to nonprofit organizations that provide nutrition assistance to low-income families. Purchases only occur during periods of low dairy margins. Vilsack said the program will help stabilize prices.
New web tool helps dairy farmers make decisions
Now that USDA has announced the Margin Protection Program (MPP) for dairy farmers, consider using a new web-based tool for decision making. The University of Illinois partnered with the Farm Service Agency (FSA), the National Coalition of Producer Education and the National Program on Dairy Markets Policy to develop the new tool. The web tool also provides information on the Livestock Gross Margin-Dairy (LGM-Dairy) insurance program. The tool can be accessed at {fsa.usda.gov/mpptool}, {dairy markets.org/MPP} or {farmdoc.illinois.edu/farmbilltoolbox}. The MPP Decision Tool can run on all electronic devices, including home PC, smartphones and tablets using Windows, iOS and Android operating systems. Dairy producers need to know their operation’s production history. The decision tool features four primary components: • What is your production history? The dairy operation’s production history is defined as the maximum calendar year milk production during 2011, 2012 and 2013. • Evaluate MPP margin forecast. Daily price forecasts of the dairy production margin are generated using CME Group futures market data. This information is used to forecast the probability of MPP payments for all 126 coverage options for the coverage year. • Select a coverage level threshold and coverage level percentage. Different coverage options reflect a producer’s ability to generate different margin levels (from $4 to $8 per hundredweight) and different coverage percentages (from 25 percent to 90 percent). • Print registration forms. Dairy farmers can elect a coverage level and coverage percentage, and then print their farm-specific FSA registration forms directly from the tool. Alternatively, users on a mobile device can generate a PDF file displaying their coverage options selected from within the tool. After this four-step process, dairy farmers can easily view and print all 126 coverage options: total premium costs and administrative fee; forecast MPP payments to be made during the coverage year; and net MPP benefits (defined as the MPP payment minus the premium and administrative fee). For dairy farmers who want to use their own expectations of milk, feed and margin price risk, the tool will soon include an advanced interface allowing users to self-select all 48 milk and feed prices to determine how MPP may function to smooth dairy production margins. The MPP replaces milk price and revenue support programs. A voluntary program, MPP places emphasis on protecting dairy production margins. MPP protects against severe downturns in the milk price, increasing livestock feed prices, or a combination of both.
U of I study: Pigs absorb less amino acids from low-fat DDGs Feed companies and hog farmers using low-fat dried distillers grains with solubles (DDGs) may have to formulate diets based on reduced values for standardized amino acid digestibility compared with values for conventional DDGs. That’s the finding of the latest University of Illinois study. New low-fat DDGs, a co-product of the ethanol industry, result when ethanol plants separate solubles to extract oil they sell to the biodiesel industry. “Dietary fat concentration has been shown to be a factor in the digestibility of nutrients,” said Hans Stein, a U of I animal sciences professor. “Because DDGs supply a significant amount of protein in swine diets, we wanted to investigate if amino acid digestibility is compromised in diets containing low-fat DDGs.” Stein’s team compared amino acid digestibility in growing pigs fed diets with
conventional DDGs containing 11.5 percent fat with two low-fat DDGs sources containing 7.5 percent and 6.9 percent fat, respectively. “We observed that the standardized ileal (intestinal) digestibility of almost all amino acids was greater in conventional DDGs than in either source of low-fat DDGs,” Stein said. The team also investigated if adding fat — corn oil — to the low-fat DDGs diets would improve amino acid digestibility. It did not. Stein noted that previous experiments showed adding fat increased amino acid digestibility. However, he noted that differences in fat levels between diets without or with added fat were much greater than in the current study. The study recently appeared in the Journal of Animal Science and Biotechnology. Poet Nutrition of Sioux Falls, S.D., provided financial support for the study.
GROWMARK reports solid business year, leadership change
Page 11 • Monday, September 1, 2014 • FarmWeek
After 40 years, Jeff Solberg vividly remembers the day he walked into GROWMARK Inc.’s Bloomington headquarters. “I was so fortunate to pick the right place to work in the first time,” Solberg, GROWMARK’s retiring CEO, told annual meeting participants last week in Chicago. “GROWMARK today is in the best financial condition in its 87year history. Jeff Solberg I’m very proud to say I’m walking away with a great balance sheet, and turning this over to a new management team that’s going to do a great job moving forward,” Solberg told the RFD Radio Network. Solberg retires Sept. 15. Jim Spradlin of Morton becomes CEO a day later. Spradlin has held various positions within the GROWMARK System of cooperatives, including controller of Schuyler-Brown FS, regional administrative director, general manager of Piatt Service Company, general manager of Ag-Land FS, energy division manager, agronomy division manager and vice president of agronomy.
Solberg told annual meeting attendees fiscal 2014 sales total an estimated $10.2 billion with an estimated and unaudited pretax income of $180 million. Those results closely match 2013 sales of nearly $10.3 billion and pretax income of about $220 million. Solberg called the results “a strong year which will once again exceed our key financial target of 12 percent return on capital.” Patronage refunds will total an estimated $90 million, which will be distributed 40 percent in cash and 60 percent in stock. Solberg noted the Seed Division shipped 3.5 million units of corn and soybeans, while the Retail Grain division recorded sales volume of 200 million bushels and pretax income of $5 million. The Retail Supplies business registered sales of $1.8 billion and pretax income of $3.5 million. Solberg pointed to several keys to success for the GROWMARK System: • Focus remains on key businesses — crop protection, plant food, energy and seed. Solberg said those businesses contain the right scale and assets for continued success. He credited GROWMARK employees for positioning the cooperative for current and
future solid financial performance. • Adopt advancements to meet farmer needs. Solberg noted that agriculture has entered an information phase. Farmers need resources to collect and analyze data, and use it to improve their bottom lines, he said. “We’re going to be here to help them do that,” Solberg added. Earlier this year, GROWMARK helped Jim Spradlin launch the Open Ag Data Alliance, an organization aimed at helping farmers share and utilize information more easily, while maintaining the privacy and security of their data. GROWMARK teamed with Deere & Company to deliver real-time data to producers and FS Crop Specialists. GROWMARK will link its suite of precision agronomy software with Deere technology.
“We will take care of business in order to preserve our heritage, maintain our reputation in the industry and build on our success,” Solberg concluded. “For nearly 90 years, our patrons have known us as a
reliable supplier of quality products and services. We will enhance that reputation as we move forward.”
Rita Frazer, RFD Radio Network anchor, contributed to this story.
FS co-ops earn performance award
Five FS member cooperatives received business performance improvement awards during the GROWMARK Inc. annual meeting in Chicago last week. Ag-Land FS Inc. of Pekin showed the highest degree of improvement. Floyd Heller served as manager and Lynn Haseley serves as president. Two Rivers FS Inc., now part of Prairieland FS Inc. of Jacksonville, ranked second. Keith Hufendick serves as manager for the time period measured with Chet Ester, president. Gold Star FS Inc. of Cambridge claimed third with Steve Swanstrom serving as manager for the time period being measured and Ron Polage, president. Fourth place went to Agriland FS Inc. in Iowa with John Knobloch as manager and Bob Adkins, president. Stephenson Service Company of Freeport ranked fifth with Jay Kempel as manager and Keith Meier, president. GROWMARK measures the improvement in the performance of member cooperatives based on return on invested capital. During a five-year time frame, each cooperative’s return on invested capital improvement gets measured in comparison to other cooperatives in the system.
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Wilson named Friend of GROWMARK
Steve Wilson, recently-retired CF Industries CEO and chairman, received the Friend of GROWMARK award last week at the regional cooperative’s annual meeting in Chicago. Wilson joined CF Industries as chief financial officer in 1991. He became CEO in 2003. Wilson led CF through uncertain market situations and significant organizational change, including adopting a new business model and establishing financial performance as its primary objective. The change resulted in a successful initial public offering (IPO) in 2005, which completed the company’s transition to a publicly-traded, global leader in nitrogen manufacturing and distribution. Steve Wilson Although the IPO resulted in a disbanding of CF’s original cooperative structure, owners of the original cooperative, including GROWMARK, benefited from the IPO structure and ownership of CF stock. CF began in 1946 as a fertilizer brokerage operation founded by a group of regional agricultural cooperatives and operated as a typical supply cooperative through 2002. GROWMARK maintained ownership in CF, and regularly sourced nitrogen products from CF as part of the cooperative structure. The Friend of GROWMARK award was established in 1989 to recognize outstanding leadership and commitment to agriculture, and friendship to the GROWMARK System. Since its inception, more than 25 individuals and organizations have been honored.
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FarmWeek • Page 12 • Monday, September 1, 2014
Illinois State University agriculture professor Shalamar Armstrong, center in red shirt, answers questions about his watershed nitrogen research study near Lexington during a tour last week. Armstrong’s research is funded by the Illinois Nutrient Research and Education Council. (Photos by Kay Shipman)
ISU researchers studying nitrogen timing, cover crop impacts on tile-drained fields BY KAY SHIPMAN FarmWeek
Central Illinois fields will yield nutrient management data in addition to corn and soybeans in a study funded by the Illinois Nutrient Research and Education Council (NREC). Illinois State University (ISU) researchers Shalamar Armstrong and Catherine O’Reilly discussed their field
research near Lexington in McLean County with NREC members last week. They want to assess the impact of nitrogen application timing and cover crops on tile-drained fields in a corn-soybean rotation. NREC Chairman Gary Hudson, a Hindsboro farmer, applauded the study for providing farmers with information they need.
“It’s an excellent project — being funded by farmers — to find out what’s actually going on with the nutrients we’re applying, whether they’re being utilized properly or whether they’re being wasted,” Hudson said. “If I can spend 75 cents a ton and find a more efficient way of using fertilizer, it’s money well spent,” Hudson said.
Richard Roth, an Illinois State University agriculture graduate student from Divernon, explains solar-powered, automated water sampling technology used at the research plot.
Farmers pay a 75-cent assessment per ton of bulk fertilizer to fund NREC. The study covers 15 individually tiled fields that had 60 percent of nitrogen applied in the fall and 40 percent in the spring. In 2015, five management systems will be studied. A cover crop mixture of tillage radish and cereal rye will be studied on some fields. Treatments include: • a control field with no fertilizer and no cover crop; • a field with spring fertilizer application of 35 percent preplant and 65 percent sidedress; • a field with spring fertilizer application of 35 percent preplant, 65 percent sidedress and a cover crop; • a field with a split applica-
Tuesday:
• FarmWeek: “The Early Word” • Bryce Anderson, DTN • Bill Bodine, Illinois Farm Bureau: fracking rules • Stone Seed representative: agronomy update • Toni Dunker, Advanced Trading: livestock update Wednesday: • Tim Schweizer, Illinois Department of Natural Resources • Attorney General Lisa
tion of 60 percent fall applied fertilizer and 40 percent sidedress; and • a field with a split application of 60 percent fall applied, 40 percent sidedress and a cover crop. A similar nutrient management and cover crop study will be established in Douglas County on tiled fields, according to Bob Hoeft, NREC research adviser and retired University of Illinois soil fertility specialist. In addition to research results, the ISU project holds potential to energize future scientists, according to Dan Schaefer, director of nutrient stewardship with the Illinois Council on Best Management Practices. “We’re educating the next generation of students how to do this (field research) work and about the importance of this work. It’s exciting,” Schaefer said. Madigan: candidate for attorney general Thursday: • Illinois Corn Growers Association representative • Frank Butterfield, Landmarks Illinois Friday: • Chip Pew, Illinois Operation Lifesaver: railroad safety • Mike Doherty, IFB: economic update • “Horse Talk” To find a radio station near you that carries RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”
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OOK — Farm Bureau and the University of Illinois Extension will co-host a babysitting class for preteens/teens from 9 a.m. to 4 p.m. Oct. 13 at the Farm Bureau building. Cost is $10 for members and $15 for nonmembers. Call the Farm Bureau office at 708-3543276 to register by Oct. 1. OUGLAS — Farm Bureau will host “Burn Powder 4Ag” shoot out at 9 a.m. Saturday at Olde Barn Sporting Clays, Oakland. Cost is $60. Call the Farm Bureau office at 2534442 to register or email membership@douglascfb. com for more information by Friday. DWARDS — Farm Bureau will host an on-the-road seminar at 7 a.m. Friday in the Farm Bureau
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community room. Kevin Rund, Illinois Farm Bureau senior director of local government, will discuss current laws regarding transportation issues. Call the Farm Bureau office at 4452113 for reservations by Wednesday. FFINGHAM — Young Farmers will co-sponsor a kid’s run at 8:30 a.m. and a 5K run/walk at 9 a.m. Sept. 20 at the Effingham County Fairgrounds. Cost is $30 for 5K and $15 for kids fun run. Visit {active.com} for reservations. Reservations made after Thursday will not receive a T-shirt. Call the Farm Bureau office at 3422103 for more information. Proceeds will benefit local food banks. AYETTE — Farm Bureau will co-sponsor
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Bond County 4-H’er hits high note with scholarship
BY CHRIS ANDERSON FarmWeek
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Page 13 • Monday, September 1, 2014 • FarmWeek
Jessica Ronat lost count a long time ago of how many times she’s sung the national anthem at the county fair as well as football and basketball games. But she’ll never forget her last appearance. “We recorded it in the House of Blues Studio in Nashville,” said the 18-year-old singer from Pocahontas. “It was an amazing experience with all the records of big country names like Miranda Lambert hanging on the wall. I really did feel famous.” Jessica, daughter of Bond County Farm Bureau Director Steve Ronat and his wife, Michelle, ranks among four finalists in the Jessica Ronat FMC Stand & Be Heard Anthem Singing Contest. During the last six months, 231 entries narrowed to four via online voting and a judging panel. Online voting to determine a winner continues through Sept. 18 at {fmccrop.com/contest}. The winner will be announced Sept. 22. Jessica, an Indiana Wesleyan University freshman majoring in music therapy, already won a $5,000 scholarship as a final four contestant. If she wins the current online contest, she could earn another $5,000 scholarship. “She’s gone to a lot of work for this contest,” said Steve, Jessica’s proud father. “She’s sung in school choir, the state and national FFA choirs and at church. She’s never had voice lessons.” The Ronats learned about the contest through their friend, Edie Gaffner, who found out about it while attending a conference. Gaffner picked up information at the FMC Corporation booth, delivered it to Jessica and encouraged the aspiring singer to enter. “I have nothing to lose. I’ve already won a scholarship,” Jessica noted. “Last year’s winner went all over the country singing the national anthem. That would be great.” Jessica and her family raise Katahdin Hair sheep and chickens. She’s been a 4-H’er for nearly a decade and an FFA member for three years. Her 10-year-old sister, Rachel, follows in her footsteps as a 4-H member. “This year’s finalists not only display strong musical talents, but they are truly the future of our industry,” said Matt Hancock, FMC Agricultural Solutions North America corn segment manager. “We look forward to seeing where their futures take them.” FMC is a diversified chemical company serving agricultural, industrial and consumer markets through the world.
an all-terrain vehicle safety class at 10 a.m. Sept. 13 at the Farm Bureau office. Call the Farm Bureau office at 2833276 for more information. ENRY — Farm Bureau will sponsor a series of market outlook seminars. The first will be held at 6:15 p.m. Sept. 10 at Lavender Crest Winery, Colona. Naomi Blohm, Stewart-Peterson, will speak. Cost is $75 for the series, $25 for a single session and $30 if not preregistered. Reservations must be made by Wednesday to guarantee a meal. Call the Farm Bureau office at 937-2411 for reservations. • Farm Bureau, the Illinois Environmental Protection Agency and the Henry County Soil and Water Conservation District will conduct a free household hazardous waste collection from 8 a.m. to 3 p.m. Sept. 20 at the Henry County Fairgrounds. Call the Farm Bureau office at 937-2411 for more information. ANKAKEE — Farm Bureau will sponsor the Kankakee County growers yield check banquet at 6 p.m. Sept. 10 at the Kankakee
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County Fairgrounds. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 9327471 to register by Sept. 8. ASALLE — 2014 commemorative plat books are available at the Farm Bureau office. Cost is $25 for members and $35 for nonmembers. ONTGOMERY — Prime Timers will meet for lunch at noon Sept. 17 at the Farm Bureau office. The Back Porch Pickers will perform. Farm Bureau members age 55 and older are welcome to attend. Cost is $9. Call the Farm Bureau office at 532-6171 for reservations by Sept. 12. ICHLAND — The Young Leader Committee will sponsor a half marathon and 5K race at 8 a.m. Sept. 13 at Musgrove Park, Olney. Visit {richlandcountyfarmbureau.com} for routes, time schedules, sponsorships and online registration under the “Harvest Hustle” tab. Registration is also available at the Farm Bureau office. Cost is $50 for the half marathon and $25 for the 5K. Reservation deadline is Sept. 12.
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T. CLAIR — The Young Leader Committee will sponsor a shred day from 9 a.m. to noon Saturday at the Farm Bureau office. ERMILION — Agriculture in the Classroom will host an open house for teachers, principals and anyone interested in learning more about the program and materials provided from 4 to 5:30 p.m. Wednesday and 3:30 to 5 p.m. Thursday at the Farm Bureau office. Call the Farm Bureau office at 4428713 for more information. ILL — Farm Bureau will co-sponsor a corn and soybean growers yield demonstration field/ agronomy day from 3 to 7:30 p.m. Sept. 10 at Kiefner Farms, Manhattan. Doug Yoder, IFB senior director of affiliate and risk management; Matt Montgomery, Burrus Seed; and Bob Lawless, Syngenta, will speak. Dinner will be served from 4:15 to 6:30 p.m. Call the Farm Bureau office at 727-4811 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 1, 2014
How will grain transportation system fare this fall?
Given the expectation that the U.S. will soon harvest a record crop, the question must be raised — how will grain logistics fare this fall? Demand for commodities has been robust this past marketing year, which taxed the U.S. grain transportation system in many areas. This has made Shalene Reeves it a challenge for commercial elevators to ship grain out as quickly as they would like and indications are logistical challenges will persist as we move forward. The U.S. transportation network is showing signs of suffering, and commercial grain elevators are being impacted.
Icy conditions reduced barge shipments on the upper Mississippi and Illinois Rivers early in the year, while flooding plagued river traffic in the middle of the summer. The recent flooding has caused barge movement to remain slow in some areas due to river-carried sediment and shoaling issues. Traffic on several major rail lines remains backlogged due to a lack of power, cars and crews. Many attribute the delays to increases in hauling containers, intermodal, coal and especially crude oil. These delays continue to frustrate elevators that rely on rail cars as millions of dollars have been spent on upgrades to loading facilities over the years. Although railroads indicate they are purchasing more locomotives and hiring more crews, all of that takes time and is not a quick fix to the current problem.
Continued from page 1 “The price of corn (near Fargo, N.D.) recently was just $2.80 (per bushel) based on problems with transportation and rail,” he said. Transportation bottlenecks and railcar shortages occurred in recent months in the Dakotas and northwest Minnesota due in part to competition from the oil industry. Use of railcars to ship oil from North
Dakota’s Bakken oil fields put the clamps on grain shipments. The corn basis as a result collapsed and the spread between futures and local prices widened to more than $1 per bushel in some parts of the Dakotas. Elliott hopes to avoid similar bottlenecks for barges on the Mississippi and Illinois Rivers via improvements to the existing locks and dams.
BY SHALENE REEVES
Crop
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-$71.00 $48.20 40 lbs. (cash) $75.00-$82.00 $77.70 Receipts
This Week 79,886 *Eastern Corn Belt prices picked up at seller’s farm
Last Week 92,612
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $93.17 $94.22 - $1.05 $68.95 $69.72 -$0.78
USDA five-state area slaughter cattle price (Thursday’s price)
Steers Heifers
This week NA $155.00
Prev. week $152.77 $152.00
Change NA $3.00
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 $218.51 $218.18 $0.33
Lamb prices Negotiated, wooled and shorn, 105-165 lbs. for 137-162.50 $/cwt. (wtd. ave. 155.46)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8/21/2014 5.3 20.5 43.0 8/14/2014 2.1 21.9 38.2 Last year 2.5 31.4 12.1 Season total 1593.3 210.9 1808.5 Previous season total 1310.9 305.0 678.3 USDA projected total 1600 925 1900 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Trucks dedicated to hauling grain have become scarce enough that some end users are paying additional fees to guarantee freight during harvest. Where there used to be numerous smaller trucking companies in rural communities dedicated to hauling grain, producers purchased their own trucks and trailers as farming operations grew in order to get service when they need it. This, in turn, forced many small truck-
ing companies either out of business or into other markets. Unfortunately, these transportation issues will not be solved by this fall and will likely have a ripple effect throughout the country. Commercial grain elevators depend on barges, rail cars and trucks throughout the year to move grain, especially in the fall, as they use them for additional space. Difficulty acquiring reliable transportation combined
with the sheer size of the upcoming crop will almost certainly cause storage to fill up both at the elevator and on the farm. Keep in mind, although this is frustrating to everyone involved, much of it is beyond the grain elevator’s control. Shalene Reeves serves as a commodity risk consultant for MIDCO Commodities Inc. Her email address is sreeves@mid-co.com.
Equipment makers up options to price-weary farmers BY DANIEL GRANT FarmWeek
The downturn in crop prices/farm income put a dent in farm machinery sales so far this year. Sales the first half of the year declined 8.7 percent for 100-plus horsepower tractors, 11 percent for four-wheel-drive tractors and 15.2 percent for combines, according to the Association of Equipment Manufacturers. CNH Industrial, makers of Case IH, reported second quarter net sales increased almost 1 percent, but ag equipment profits during the same period declined 14 percent. John Deere’s second quarter featured similar results as net sales and revenue declined 9 percent. “I think these could be pretty tough times for machinery manufacturers,” said Mike Langemeier, associate director of Purdue University’s Center for Commercial Ag. Moline-based Deere responded last month as it intends to indefinitely lay off more than 600 employees at four production facilities, including East Moline and Moline, due to slumping demand. Deere & Co stated that “to remain globally competitive, the company must align the size of its manufacturing workforce with market demands for products.” Equipment manufacturers seemed to respond to the situation by offering farmers new options to improve efficiency and reduce inputs. Most major manufacturers rolled out new products and updated lines last week at the Farm Progress Show in Boone, Iowa. Deere last week introduced a new large square baler, a new windrower and forage har-
vester among other products. The largest tractors made by Deere, the 9R and 9RT that feature up to 620 horsepower, also were on display. “It’s one of the most significant product launches in some time,” Barry Nelson, John Deere media relations manager, told the RFD Radio Network. “This is the broadest line of hay equipment Deere has ever produced.” Meanwhile, Case IH last week introduced a Magnum Rowtrac tractor that pairs an oscillating rear-track system with front tire options to fit almost any row width. The new tractors could benefit specialty crop producers and row crop farmers. “Our new Magnum Rowtrac tractors will help producers better manage wet conditions,” said Zach Hetterick, Case IH marketing manager. The combination of immature crops and rains last week foiled most field demonstrations at the Farm Progress Show. But equipment manufacturers still provided ride-alongs. Deere also conducted high-speed planting demonstrations. Meanwhile, Case IH and Precision Planting last week unveiled new options to complement Early Riser planters. Farmers now can order customized Early Riser planters from the factory that will be ready to accept Precision Planting components desired by each grower. Precision Planting also introduced a new version of its app, FieldView, that allows farmers to remotely view key data. The new RemoteView feature allows farm managers and any other farm workers with iPads to monitor combine progress, watch real time yield maps and diagnose problems from any location.
August rains ease dryness concerns in much of state
An active weather pattern in recent weeks eased dryness concerns, for the time being, in most parts of the state. Statewide precipitation for the month averaged 4.5 inches as of Friday morning, not counting a Thursday night thunderstorm. August rainfall in Illinois typically averages just 3.3 inches, according to Jim Angel, state climatologist with the Illinois State Water Survey. “Precipitation for most of the state was above average (in August),” Angel told FarmWeek. “There’s been short periods of dry weather. But we got enough rain (this month) to wipe out much of those concerns.” However, haves and have-nots occurred in terms of the August rainfall pattern. Pockets of flash flooding happened in the Chicago area, while other parts of the state, particularly in the northwest, remain on the dry side.
Cicero in Cook County from Aug. 1 to Aug. 28 received 10.13 inches of rain, while Riverton in Sangamon County got 9.47 inches. Elsewhere, though, August precipitation as of Friday remained below the state average in Mount Carroll (2.68 inches), LeRoy (2.63 inches) and Champaign (1.44 inches). “Some parts of the state are fairly wet and others parts, not so much,” Angel said. Topsoil moisture as of the first of last week rated 76 percent adequate, 9 percent surplus and 15 percent short or very short.
The National Weather Service forecast this month was neutral in terms of chances for above or below average temperatures or precipitation. The eight- to 14-day forecast Friday, however, showed an increased chance of aboveaverage temperatures in Illinois. “We could see a continuation of warm weather,” Angel said. “Although above average for this time of year would be closer to the mid-80s, not the mid-90s.” The August temperature in Illinois averaged 73.6 degrees. — Daniel Grant
Cover crop workshop scheduled
How are cover crops selected, planted and terminated? What benefits are achieved? Those questions and more will be answered Sept. 10 during a cover crop workshop sponsored by Grundy/Kankakee/Will County Extension. From 8:30 a.m. to noon, sessions at the Extension office in Morris will be led by Mike Plumer, Extension cover crop specialist, and Russ Higgins, University of Illinois commercial agriculture educator. Preregistration is required by Thursday at {web.extension.illi nois.edu/gkw} or call the Extension office at 815-942-2725.
Corn Strategy
Traders again forced to take notice of Ukraine tensions
Grain futures were once again affected by news regarding the ongoing conflict in Ukraine. ProRussian separatists have been engaging Ukrainian security forces for several weeks, but U.S. officials acknowledged on Aug. 28th their belief that Russian military forces are now becoming directly involved in the skirmishes. Political unrest has been ongoing in the region since late in 2013 when the recently-ousted Ukrainian President Viktor Yanukovych announced his government would make efforts to improve official ties with Russia. Protestors began clashing violently with pro-Russian separatists, who found backing from Moscow at the end of February. Grain prices jumped higher on the first trading day after Russia’s invasion into the Crimean Peninsula and climbed steadily throughout spring as traders feared that grain exports out of the top five exporter would be disrupted. Prices were supported by aggressive rhetoric from Russia that was increasingly directed at the U.S. and the West. Until recently, tensions had largely faded as has the risk premium that had been attached to futures. Russian President Vladimir Putin suggested on multiple occasions that he preferred a peaceful resolution to the situation. Developments in the Ukrainian conflict have done very little to impact grain futures markets since the start of summer. Traders remain focused on the prospect for bumper crops around the world. Favorable weather has produced the expectation for recordsmashing corn and soybean yields in the U.S., and prices have adjusted accordingly. Even as fighting resumes
with more intensity in the country, Ukraine’s grain exports have been largely unaffected. Shipments from Ukrainian ports are running well ahead of their usual pace. But the export strength is partly a result of discounts that are being offered to maintain the confidence of major importers. Buyers will quickly turn away from the Black Sea grain trade if the reliability of commitments comes into question. Turmoil in the region may not yet have hindered grain exports, but the political strife is thought to have disrupted activity during the planting season and could persist as an impediment to Ukraine’s agriculture sector. Farmers will continue having difficulties planting crops and maximizing productivity if they find reduced access to finance and inputs. Subsidies in the industry are threatened by government instability, and the cost of energy/chemicals may become burdensome if the products cannot be sourced from their biggest supplier, Russia. Lately, traders are shrugging off the headlines that come and go with the 24-hour news cycle. Both corn and wheat are off more than 25 percent from their early summer highs, and the trade is extremely reluctant to allow the situation in Ukraine to add premium. Market participants have been rightly justified to ignore the situation in Ukraine because it has not yet proven detrimental to the important Black Sea grain trade. But the latest news out of Ukraine sniffs of something different. The Russian government has very nearly crossed the line between what it is claiming are acts of defense and what the rest of the world will be forced to recognize as acts of war. Markets may soon begin to account for the possibility of continued Russian aggression, not only toward Ukraine but toward the West as well.
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ü2013 crop: Cash prices remain firm in the interior where users are going to work hand-to-mouth until harvest kicks off in the Midwest. December $3.80 is the target for finishing out old-crop sales, but $3.75 is near the top end of the recent trading range, and provides a good opportunity for sales if the goal is to clear bin space for harvest. ü2014 crop: Futures may find strength into early harvest as long as the producer remains reluctant to part with bushels of corn. Wait for December futures to rally to $3.90 to make sales. If you believe you need to move some corn at harvest, make sure you have the basis locked up. vFundamentals: We expect to see some strength as harvest approaches, but prices in the mid- to lower-threes will become justified if the new crop produces 14 billion bushels. After that, we will focus less on how big the crop is and more on how we will use it. Lower prices are expected to beget higher demand going forward. But ethanol use has plateaued, feed demand is weak and exports will face plenty of competition from abroad.
Page 15 • Monday, September 1, 2014 • FarmWeek Cents per bu.
Soybean Strategy
ü2013 crop: Tight old-crop stocks make for firm basis, but prices are volatile with the promise of a big crop looming. Inform your local elevator if your intention is to move remaining old-crop inventories, so you may take advantage of fleeting pushes. ü2014 crop: If support at $10.25 does not hold, November futures could quickly find their way to the $10 mark. If you are comfortable with yield prospects, price another 10 percent if the contract trades $10.50 or higher. But on any sale, use a hedge-toarrive contract. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: Yield results from the early Delta harvest are exceptional. All else unchanged, a 47-bushel-per-acre national yield would make 2015 carryout an even more burdensome 550 million bushels. USDA is likely to revise upward its projection for new-crop demand on
the Sept. 11 balance sheet update.
Wheat Strategy
ü2014 crop: Catch-up sales should be made now. 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: Fewer acres may be planted in the next crop year and quality wheat could become scarce by the end of the current crop year. Better opportunities are likely for 2015 sales. vFundamentals: Another flaring of the conflict in
Ukraine has pushed wheat higher, but prices may not be able to sustain momentum without evidence of disruption to the port trade. The world may be awash in wheat, but the major producers are finding their crops short on quality. Recent moisture has the potential to threaten the U.S. spring wheat crop. Heavy harvest rains have diminished quality in France, and the U.K. is now facing the same troubles. Not enough rain is a potential worry for Australian producers. U.S. wheat prices are likely to benefit from better export demand later in the marketing year.
FarmWeek • Page 16 • Monday, September 1, 2014
Using food as a weapon hurts Russian consumers
We can only guess how the decision was made for Russia to ban food imports from most of the Western world, but perhaps it went something like this: President Vladimir Putin was sitting with some old pals from his KGB days. Putin was desperate for a way to retaliate against the West for its economic sanctions leveled STEWART against Russia for TRUELSEN intervening to help the rebels in Ukraine. He asked for suggestions. “Why not a boycott of their food?” suggested a former Soviet general, remembering the grain embargoes of the 1980s. “The Americans, they hate food boycotts and embargoes.” That much is true. American farmers and ranchers hate the use of food as a weapon. In January 1980, President Jimmy Carter announced a U.S. embargo of grain and oilseed shipments to the Soviet Union because of its invasion
“This is clearly a political move,” of Afghanistan. The American Farm Bureau Federation (AFBF) thought it said AFBF President Bob Stallman of Putin’s food import ban. “It is unforwas unwise to single out American farmers by using food as a weapon of tunate that the biggest losers will be the Russian consumers, who will pay foreign policy. If sanctions were more for their food now as well as in needed, AFBF preferred they be the long run.” across the board, not just on food. The old The grain Soviet Union embargo of was depend1980 proved ‘It is unfortunate that the ent on Ameria failure. It can grain and stimulated biggest losers will be the oilseeds in more grain Russian consumers, who the ‘70s and and oilseed to make production will pay more for their ‘80s up for harvest in South food now as well as in the shortfalls America to common fill the void long run.’ under the left by the communist U.S. Fifteen months later — Bob Stallman system. Beginning in when PresiAmerican Farm Bureau Federation the 2000s, the dent Reagan three major ended the grain producCarter embargo, it had cost American farm- ing regions of the former USSR — Russia, Ukraine and Kazakhstan — ers around $1 billion in lost export became major grain exporters. business. In 2013, Russia was the 20 th This time the biggest losers will not be American farmers. largest market for U.S. agricultural
and related product exports, accounting for less than 1 percent of total U.S. agricultural exports. Approximately 55 percent of these export products will be affected by the ban. Neither side, therefore, is as dependent on the other as they were in the past. Soviet grain deals once provided a huge stimulus to the American grain market. Nothing like that exists between Russia and the U.S. Europe, on the other hand, supplies 40 percent of Russia’s agricultural market and will feel the sanctions more. The idea to use food as a weapon is a bad one. American farmers could have told Putin that. Whoever suggested it to him should be put on the next train to Siberia. The Russian people have been turned into unwilling locavores, having to rely much more on locally produced food and paying more for it. Stewart Truelsen, a food and agriculture freelance writer, serves as a regular contributor to the Focus on Agriculture series.
To salt or not to salt, that’s the question
Health Organization and FDA. Perhaps USDA’s Dietary Guidelines Advisory Committee should consider making some adjustment in its recommendations — that is, if “they are worth their salt.” As for me, I’ll still salt my steak and eggs and, to be safe, I’ll have another piece of bacon and a glass of red wine.
What should we be eating? We are getting hammered from every angle about what is good for us versus what is bad. Too many carbs. Stay away from red JOHN meat. Don’t BLOCK trust genetically enhanced foods. Sugar will make you fat. The government wants to regulate. We have been through this
before, but never with the intensity that we face today. I remember when they said, “Butter is bad for you. Eat margarine.” Now, it is the other way around. At one time, some critics advised to not eat bacon because when you fry it, it is a carcinogen. How can the average consumer know what to do? The World Health Organization, following the advice of a Tufts University research study, advised we cut our salt consumption in half. The salt we eat leads to 1.65 million
deaths annually. Excessive sodium results in high blood pressure, stroke and heart disease. Our Food and Drug Administration (FDA) plans to work with food companies to get them to cut back salt. FDA argues that we should consume less than 2,300 milligrams of sodium per day. High levels are associated with high blood pressure. The average U.S. sodium daily consumption is 3,400 milligrams. Simply put — we are consuming too much salt. However, we have a new
study published in the New England Journal of Medicine which tells us that if we cut back on our salt, we will have a heart attack. The new study involved 100,000 people in 17 countries over three years. They found that individuals who consumed the low level of sodium recommended by the FDA had a 27 percent higher risk of death. The new study suggesting that we aren’t consuming too much sodium contradicts the position of the American Heart Association, the World
John Block, former U.S. agriculture secretary and a hog farmer from Knox County, serves as a senior policy adviser with the Washington, D.C., firm of Olsson, Frank, Weeda, Terman and Matz.
Yield ‘explosion’ questioned Editor: In “Farmers plant seeds via checkoffs” (FarmWeek July 21), John Block states “Working with Monsanto and other companies, we [Corn Growers Association] have genetically enhanced (GE) crops today.” He does not define “genetically enhanced,” but because he refers to Monsanto, I assume he uses this term as a synonym of the more commonly used “genetically modified” and “genetically engineered.” I will use the synonym “transgenic,” which unambiguously describes an organism modified to contain one or more genes from a different species.
Mr. Block claims that “GE [transgenic] crop yields have exploded ...” He does not define “exploded,” but I assume he means increased rapidly and/or greatly. If his claim is true, we should observe an obvious increase in average U.S. corn yields versus production year since the introduction of transgenic strains about 15 years ago. However, the plot in FarmWeek (Aug. 4) of U.S. corn yields from about 1945 through 2013 shows no yield “explosion” during the last 15 years. Scientists at the University of Wisconsin-Madison compared many commercial trans-
genic hybrid and nontransgenic hybrid corn strains in Wisconsin field experiments from 1990-2010 (G. Shi, J. Chavas, and J. Lauer. Nature Biotechnology 31 111-114 Feb. 20, 2013). Again, they found no transgenic hybrid yield explosion: “Yet, with the exception of the European corn borer traits, we were surprised not to find strongly positive transgenic yield effects.” Because I had read “Failure to Yield: Evaluating the Performance of Genetically Engineered Crops” (2009, Union of Concerned Scientists), I was not surprised. What accounts for the
steady yield increases of about 1.7 bushels per year shown in the Aug. 4 FarmWeek? About one half has resulted from increases in intrinsic (potential) yield due to traditional
plant breeding. Thus, the genetic heroes have been traditional plant breeders — not the transgene inserters. HERMAN BROCKMAN Congerville
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