Farmweek september 29 2014

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Not registered to vote? No problem. You can conveniently register online by Oct. 7. page 2

Monday, September 29, 2014

Lower grain prices trigger a need for revised farm budgets aimed at conserving cash. page 10

Illinois wheat acreage could slip depending on harvest progress and last summer’s wheat quality issues. page 4

Yield, acreage changes begin next month

Two sections Volume 42, No. 39

CORN HARVEST FLOWING

BY DEANA STROISCH FarmWeek

Corn ranging in moisture from 20 to 25 percent flows into a waiting truck on CropWatcher Brian Schaumburg’s McLean County farm. Yields in the field hit the 240- to 280-bushel mark, topping the actual production history of the farm by more than 50 bushels per acre. Cornstalk health remains strong. (Photo by Cyndi Cook)

Illinois farmers and landowners can update payment yields and reallocate base acreage at their county Farm Service Agency (FSA) office starting early next month. During a call last week with reporters, Agriculture Secretary Tom Vilsack announced farmers could start making changes allowed under the 2014 farm bill Monday (Sept. 29). But employees at Illinois county FSA offices won’t be trained — or have the software they need until after Oct. 9. “Scherrie Giamanco, Illinois FSA’s state executive director, appreciates our Illinois farmers’ patience as we train our county offices Oct. 6, 7 and 8, so we can have complete information to do a good job of informing our producers and getting them enrolled in either Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC),” said Rick Graden, Illinois FSA’s executive officer. “As of Friday morning, (Sept. 26), we do not have any computer software applications that we can begin any ARC/PLC activities, and we do not

Farmers share concerns about ‘waters of the U.S.’ proposal

Periodicals: Time Valued

Illinois farmers continue to share how the proposed rule redefining “waters of the U.S.” would affect their operations. The deadline to submit comments to the Environmental Protection Agency (EPA) is Oct. 20.

Michele Aavang lives near Woodstock. She shared her comments to EPA with FarmWeek. Here’s an excerpt: “I’m a farmer from the Midwest, growing crops and raising cattle on land that has been in the family since the 1840s. The proposed rule would greatly expand the scope of navigable waters subject to Clean Water Act jurisdiction by regulating small and remote waters. Many of these are rarely even wet or considered “waters” under any common sense definition of the word. On our farm, which includes both pasture land and fields under cultivation, we have low areas and ditches, which will briefly hold water in the event of a substantial rain event. These are in no way “navigable” by commonly accepted definitions — merely natural areas of land that temporarily hold some water as it drains away.

See Programs, page 5

‘Farming will become more difficult and unnecessarily complicated.’ — Michele Aavang The idea that the performance of ordinary farming activities like building fences, tilling and removing weeds in these areas should be subject to government regulation and EPA jurisdiction is ridiculous and nonsensical to me. I understand that the intent of the rule is to provide clarity. The only thing that is clear to me is that farming will become more difficult and unnecessarily complicated. I can only imagine how this proposed EPA rule will add to the growing task of keeping up with local, state and federal licenses, permits, applica-

tions, rules and regulations, which are not only costly and time consuming, but also increasing at an alarming pace. I hear much about agricultural exemption, but do not see much of this “exemption” in real life application. There are currently three generations involved in our farm business. We had hopes to continue the tradition and pass the farm along to future generations, but increasingly burdensome, stifling overregulation and policy decisions that affect our ability to make a living at farming do indeed put that goal at risk and make the probability questionable.” www.facebook.com/illfarmbureau


Quick Takes

FarmWeek • Page 2 • Monday, September 29, 2014

VIDEOS FEATURE BIG DATA ISSUES — Want to know more about the risks and rewards of agricultural data analysis technologies? The American Farm Bureau Federation created a series of short educational videos on the topic. From collecting weather data to analyzing nutrient applications and seed varieties, agricultural technology providers collect data that help farmers increase efficiency and yield higher profits. But many questions remain unanswered regarding who owns and controls this information once it gets collected. Mary Kay Thatcher, AFBF senior director of congressional relations, explains data ownership, discusses key concerns for data use and provides guiding questions for farmers as they translate privacy agreements and termsof-use contracts. Watch the videos at {bit.ly/1sl1G88}.

NEW FARM EDUCATIONAL APP — Need some new educational games to help teach children about agriculture? The American Farm Bureau Foundation for Agriculture has an app for that. My American Farm 2.0 contains six games aimed at encouraging pre-K through fifth graders to dive into the world of agriculture and energy, and tackle problemsolving missions for the virtual community of Energyville. The app for iPads, Android tablets and Kindle Fire can be downloaded from iTunes, Google Play and Amazon. The new app also builds on the math-focused game, In My Barn, with a pre-K level to draw in new users. To learn more about free My American Farm resources, games and activities, visit {myamericanfarm.org}.

U OF I DEPARTMENT NAMED BEST — U.S. News and World Report recently ranked the University of Illinois Department of Agricultural and Biological Engineering (ABE) best in the nation. The U of I undergraduate program tied with Purdue University for the top spot. Texas A&M, Iowa State and Florida rounded out the top five. Recommendations by deans and senior faculty from participating colleges weighed into the ranking. In addition, the magazine sought nominations for the best programs. Those receiving the most mentions received top ranking. U of I’s ABE has consistently been ranked among the top three spots for almost a decade, including a previous four-year stint at No. 1.

(ISSN0197-6680) Vol. 42 No. 39 September 29, 2014 Dedicated to improving the profitability of farming, and a higher quality of life for Illinois farmers. FarmWeek is produced by the Illinois Farm Bureau. FarmWeek is published each week, except the Mondays following Thanksgiving and Christmas, by the Illinois Agricultural Association, 1701 Towanda Avenue, P.O. Box 2901, Bloomington, IL 61701. Illinois Agricultural Association assumes no responsibility for statements by advertisers or for products or services advertised in FarmWeek. FarmWeek is published by the Illinois Agricultural Association for farm operator members. $3 from the individual membership fee of each of those members goes toward the production of FarmWeek. “Farm, Family, Food” is used under license of the Minnesota Farm Bureau Federation.

Address subscription and advertising questions to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Periodicals postage paid at Bloomington, Illinois, and at an additional mailing office. POSTMASTER: Send change of address notices on Form 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL 61702-2901. Farm Bureau members should send change of addresses to their local county Farm Bureau. © 2014 Illinois Agricultural Association

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

‘Crisis point’ for U.S. waterways Report: Condition ‘more critical than ever’

BY DEANA STROISCH FarmWeek

Saying the nation’s freight system “has reached a crisis point,” the Illinois Chamber Infrastructure Council renewed its call last week for Congress to find money for muchneeded improvements to the country’s waterways system. “Failure to invest in the needed maintenance and repair of our locks and dams increases the risk of catastrophic breakdowns and closures, impacting not just the shippers of commodities but the overall economy and our quality of life,” according to a Chamber report titled, “Illinois Waterways: A Crisis Continued.” Meanwhile, Illinois Farm Bureau continues to lobby the Corps to quickly implement several key provisions of the Water Resources Reform and Development Act of 2014 (WRRDA), including immediate prioritization of inland waterway projects. Eight locks and dams make up Illinois’ waterway system with another 29 located on the state’s borders. According to the report, all but one date back to the 1930s and “are in desperate need of repair.” In 2012, the waterways in and around Illinois carried about 100 million tons of products worth about $28 billion, according to the report. “Illinois’ outdated locks and dams have resulted in backups that have caused average tonnage carried on the state’s locks to decline by 20 percent,” according to the report. “Mod-

ernization to provide better efficiency and reliability would reduce closures and delays, and improve the competitiveness of Illinois companies delivering goods to and from the global marketplace.” Federal legislation in 2007 authorized new locks and dams, but no money. It’s the same story for 2014. WRRDA authorizes $12.3 billion improvements to the nations’ waterways, but no funding. “With today’s WRRDA legislation, we must be more vigilant and work across regional, party and industry lines to push harder for the funding required,” the Chamber report states. “WRRDA authorized progress in improving our waterways, but we must not allow our leaders in Washington to merely authorize progress without funding it. Improving our waterways is a critical investment in the future of the state’s economy and environment.” Reps. Adam Kinzinger, R-Manteno, and Daniel Lipinski, D-Western Springs, participated in a news conference announcing the findings. “This report is a reality check and shows action must be taken to improve our waterways,” Kinzinger said. “Illinois is the second largest agricultural exporter in the United States, but we cannot sustain that key source of local jobs if our waterways are not revamped. It just makes sense to invest now rather than wait until we have a true emergency on our hands.”

Deadline soon to vote in November ELECTION CALENDAR

BY KAY SHIPMAN FarmWeek

Unregistered Illinois residents may use any of several processes to register to vote in the Nov. 4 election. Each process comes with deadlines and requirements. This year, residents may use new electronic, paperless voter registration. Illinois residents may check to see if they are registered to vote either by contacting a local election authority or by going online to {elections.il. gov/votinginformation/Regis trationLookup.aspx}. You will need to enter your first and last name and ZIP code. If registered, a voter will receive the location of his or her polling place and the districts in which the voter will be voting. Those not registered have until Oct. 7 to register. They may register online, at an election authority office, at a driver’s license facility or by mail

using an Illinois voter registration application. To register online, Illinois residents must submit online applications by 11:59 p.m. Oct. 7 at {https://ova.elections.il. gov}. Anyone registering online must have an Illinois driver’s license or identification card from the secretary of state’s office. That individual also must submit the last four digits of his or her Social Security number. Voters unable to register by Oct. 7 may register Oct. 8

Oct. 7 Last day to register to vote Oct. 8 First day of grace period registration, voting Oct. 20 First day for early voting Nov. 2 Last day for early voting Nov. 4 Election Day

FarmWeekNow.com

Visit FarmWeekNow.com to learn the latest on early voting procedures and voter registration across Illinois.

through Nov. 4 during grace period registration. Once registered during the grace period, a voter would cast a ballot at the election authority’s office or a specifically designated location. For more information, visit {elections.il.gov}.

COUNTRY launches literacy program

In an effort to increase financial literacy across the nation, COUNTRY Financial has partnered with Financial Beginnings, an Oregon nonprofit group, to provide free financial literacy curriculum to kindergarten through college students. Only six states currently require testing of student knowledge in personal finance, according to the Council for Economic Education. COUNTRY will work with Financial Begin-

nings to license curriculum that meets state standards. Materials will teach students about debt management, planning for higher education, the importance of insurance and saving for special milestones. Teachers or parents can use the free curriculum to present to children and young adults. To access the materials or to request a classroom visit by a COUNTRY Financial representative, visit {countryfinancial.com/FinEd}.


USDA surprises trade with swine herd expansion estimates

Page 3 • Monday, September 29, 2014 • FarmWeek

BY DANIEL GRANT FarmWeek

USDA expects swine production to rebound in the months ahead based on inventory estimates unveiled Friday in its quarterly hogs and pigs report. The Ag Department predicts farrowings will climb 4 percent (to 2.89 million sows) from September through November and 3.8 percent (to 2.87 million sows) during the winter quarter compared to last year. The farrowing estimates beat trade expectations by nearly 1 percent in the fall and 2.1 percent in the winter. “Across the board, every number came in higher than expected,” Ron Plain, University of Missouri ag economist, said during a teleconference hosted by the National Pork Board. “I view it as a bearish report.” Overall, USDA pegged the inventory of all hogs and pigs in the U.S. on Sept. 1 at 65.4 million head, down 2 percent from a year ago, but 1.4 percent higher than the average prereport estimate. Another surprise to some analysts was the average number of pigs saved per litter during the summer

quarter, which came in at 10.16, down just 1.6 percent. The number of pigs saved per litter previously nosedived 5 to 6 percent during the peak of the porcine epidemic diarrhea virus (PEDV) outbreak last winter and spring. “We fell off, but now we’re creeping back up (in litter sizes),” said Daniel Bluntzer, FarmWeekNow.com director of research Go to FarmWeekNow.com for analysis of the latest hogs and at Frontier Risk pigs report. Management in Corpus Christi, Texas. “It points towards a lot more hogs into next year.” Bluntzer believes if the farrowings and litter size estimates are realized, hog slaughter could increase 1 to 2 percent by the first quarter next year all the way up to 5 to 8 percent by the second and third quarters. “Unless the count of pigs per litter goes down due to PEDV, we could see a big increase in the pig crop in front of us,” Plain said. The economists subsequently predicted hog prices could drop substantially by the fourth quar-

ter next year. Plain predicts Iowa/Minnesota carcass prices of $92 to $96 per hundredweight in the fourth quarter, $87 to $91 in the first quarter next year, $90 to $94 in the second quarter, $87 to $91 in the third quarter down to $77 to $81 by the fourth quarter. Bluntzer predicts the CME lean index prices could slip from $97 in the second quarter next year to $82 by the fourth quarter. PEDV vaccines have been somewhat effective in reducing baby pig losses, Plain noted. But the virus could test producers in the months ahead. “My expectation is PEDV will be a seasonal problem causing more baby pig losses in the winter months,” he said. Meanwhile, other factors that eventually could weigh on hog prices include a strengthening dollar that could bite pork exports and an increase in market hog shipments from Canada into the U.S. caused by the bankruptcy of a major packer north of the border. The U.S. market hog inventory as of Sept. 1 totaled 59.4 million head, down 3 percent from last year, but up 7 percent from last quarter.

Farm family sees pork production as way to expand operation

Pork production has been a key part of the Duewer family farm near Waverly (Morgan County) the past four generations. And it appears that tradition will continue well into the future as Rich and Teri Duewer and their sons, Gavin and Brendon, last week opened a new 3,600 head feeder-to-finish barn. They also farm with Rich’s parents, Raymond and Dorothy. The expansion presents a key opportunity for Gavin, a Cass-Morgan Illinois Farm Bureau Young Leader and recent University of Illinois graduate, who returned to farm full time. “It’s a great opportunity for me,” Gavin told FarmWeek last week during a public open house at the facility. “We farm 1,200 acres. We had a chance to do this (expand the hog operation) and decided to go ahead and take the leap.”

Left, Rich Duewer, left, discusses technological advancements in his new hog facility with Ann Sinclair, center, New Berlin, and Lee Bridgman, right, Jacksonville, during an open house. The Illinois Pork Producers Association began hosting open houses at new hog facilities about a decade ago to showcase new technology and address consumer concerns and questions about pork production. Right, The father and son farming team of Rich (right) and Gavin Duewer (left) pose inside their newly constructed, 3,600 head feeder-to-finish hog barn on their farm near Waverly (Morgan County). The addition of the swine facility presents a key opportunity for Gavin, a fifth-generation farmer who recently returned to the farm. (Photos by Daniel Grant)

The expansion of livestock production provides an important avenue for many young people to return to family farms or for existing farmers

New probiotic improves pig health A new probiotic for pigs may mean less manure to manage, according to USDA studies. Agricultural Research Service (ARS) scientists conducted the first published investigation of bacteria using a probiotic to increase fiber fermentation rates and reduce manure output in pigs that eat high-fiber diets. Adding dried distillers grains with solubles (DDGs) and other agricultural co-products from biofuel production also increases hard-to-digest fiber and the production of manure. Microbiologist Cherie Ziemer and animal scientist Brian Kerr at the ARS Agroecosystems Management Research Unit in Ames, Iowa, fed the pigs in their study either a typical diet or a high-fiber diet. The high-fiber diet contained 10 percent soybean hulls and 20 percent corn DDGs. The pigs also received one of three bacterial supplements the scientists developed from different strains of Bacteroides ovatus, which had been obtained from human fecal samples and cultured in fiber-rich media. Pigs that received one of the bacterial supplements reduced their manure output by 20 percent. These pigs also gained more weight and had improved blood cholesterol and glucose levels, both indications of an improved energy status compared to pigs not given probiotics. Ziemer believes the probiotic could improve pig performance and reduce manure volumes, which in turn would increase farmer profits. She said the bacterium might be fed in a liquid supplement or possibly freeze-dried and mixed with feed.

to expand in Illinois, according to Nic Anderson, business developer for the Illinois Livestock Development Group. Extreme competition for crop acres, and subsequent historically high land and cash rent prices, keeps many farmers from boosting their acreage base and expanding the cropping side of operations. Meanwhile, livestock prices raced to record highs this year, and feed prices moderated in recent months due to sharp drops in grain and oilseed prices. “It means a lot to me. He (Gavin) is the fifth generation to farm,” Rich said. “Farming takes so much money. One person can’t just jump into it. I’m happy to help give (Gavin) the opportunity.” The Duewer family, who installed their first finishing building in 1974 after raising hogs in pastures, contract pigs in their new facility for The Maschhoffs of Carlyle, the largest family-owned, independent pork producer in the U.S.

“We went through some pretty tough times,” said Rich, who operated a farrow-to-finish operation until 1998. “Now, contract feeding for The Maschhoffs, we have a guaranteed contract and don’t have to stand the ups and downs.” The facility features stateof-the art technology that allows the Duewers to control feed, water and temperature in the tunnel-ventilated barn, and contain the manure to fertilize their crop acres. The facility will provide manure to fertilize about 300 crop acres. Meanwhile, on the production side, the facility will generate about 15,000 fresh hams and 100,000 pork chops each year, according to Anderson. “Manure is liquid gold,” Gavin said. “It’s got a lot of nutrient and fertilizer value.” Manure applications also improve overall soil health and organic matter, noted Tim Maiers, director of industry and public relations for the Illinois Pork Producers Asso-

ciation (IPPA). “It’s become a very valuable byproduct (of pork production),” Maiers said. IPPA began sponsoring open houses for new hog facilities about a decade ago to showcase new technology, ease consumer concerns and answer questions about hog production. “I feel (the open house) is very important,” Gavin said. “A lot of people don’t really know how hogs are raised. This is a great opportunity for everybody to come and see what it’s all about.” Matt Henry, business development senior manager for The Maschhoffs, believes more opportunities exist to expand pork production in the state. “We’ve got the infrastructure, demand for the product and the processing facilities in the state (to expand production),” Henry said. “We currently import pigs from other states to process, so the more pork we produce here, the better.” — Daniel Grant


Window of opportunity finally arrives for harvest

FarmWeek • Page 4 • Monday, September 29, 2014

BY DANIEL GRANT FarmWeek

Harvest activity continued to pick up last week and should reach high gear this week in most areas of the state if the weather forecast holds. Corn harvest the first of last week was just 6 percent complete, 17 points behind the five-year average. Less than 1 percent of soybeans were in the bin compared to the average of 5 percent. “It’s been challenging (to start harvest). It’s been pretty muddy at some locations,” Steve Dennis, grain department manager for Evergreen FS in central Illinois, said last week. “A few guys are going strong, but with such good drying conditions, others are holding back (on harvest to allow corn to dry in fields).” That should change this week. The rainy pattern that was persistent for much of September finally broke early last week. The Accuweather.com forecast this

week calls for a continuation of mostly sunny conditions, and high temperatures even touching the 80s before a chance of rain late in the week. “A lot of corn we’ve been taking has been between 22 and 28 percent moisture,” Dennis said Thursday. “I suspect by this weekend (it will be drier) and things will be going hot and heavy.” Ken Taake, a FarmWeek CropWatcher from Ullin (Pulaski County) completed about one-third of his corn harvest as of Thursday. Yields (140 to 200-plus bushels per acre) and moisture (16.5 to 20-plus percent) were all over the board in his area. “We’re in the thick of corn harvest here,” Taake said last week. “A few guys are waiting (to pick corn) until it

dries more. The moisture discounts are pretty heavy.” The yield and moisture levels are variable in southern Illinois due in part to a wet spring that stretched out planting and stressed crops early in the season. “Planting was so wet in our area, we didn’t get the (plant) populations we wanted (in some fields) and it (excess water) stressed all the early (planted) fields,” Taake said.

“Our (corn) planting season was so spread out, from the end of April to Memorial Day,” he continued. “The late-planted stuff is really wet. Guys will wait on it (to dry in the fields).” Overall, Taake remains hopeful the corn yield average on his farm this fall will surpass last year, which was his best crop ever. Dennis said corn yields in his area also are very good so far this harvest. “There’s been so much hype, expectations are pretty high,” he said. The jury remains out on soybeans, however. Late maturity and pressure from sudden death syndrome could take the top end off yields in some areas. “Bean yields have been good (55 to 70 bushels per acre) so far, but none of those great big numbers we’ve heard (elsewhere)” Dennis added.

Winter wheat seedings could slip if harvest delays linger

The slow start to harvest could affect more than the flow of corn and soybeans this fall. The situation also could play a key role in determining the number of winter wheat acres seeded in Illinois. “A lot depends on where we’re at with bean harvest and field conditions (next month),” said Robert Bellm, crop systems educator at the University of Illinois Brownstown Agronomy Research Center. “The bean crop tends to be lagging a bit in maturity, which delays harvest and pushes back wheat planting.” Illinois farmers as of the first of last week combined a handful of soybean fields, but not enough to register in the official state statistics. Farmers typically harvest 5 percent of the crop as of Sept. 21, the National Agricultural Statistics Service reported. Meanwhile, the portion of the bean crop dropping leaves in the state last week totaled 34 percent, 12 percent behind average. Martin Barbre, a farmer from Carmi (White County) believes the late start to corn and soybean harvest, along with wheat quality issues this year, will impact wheat seedings in his area this fall. “I think we’ll see a short crop,” Barbre said. “We had vomitoxin issues (that greatly reduced wheat returns), and I think it will be more difficult to get (the wheat crop) planted in a timely fashion.” Southern Illinois farmers prefer to plant winter wheat after the fly-free date, typically between Oct. 7-12, Bellm noted. Most farmers don’t care to plant wheat after Halloween due to the reduced chances to establish a good

‘A lot depends on w h e r e we ’r e a t with bean harvest and field conditions (next month).’ — Robert Bellm U of I crop systems educator

stand prior to winter dormancy. “If it gets later than that (mid-to-late October prior to wheat planting), yield potential declines,” Bellm said. “A lot of farmers, if they haven’t planted (wheat) by the end of October,

probably will abandon plans to do so.” Wheat prices recently dipped to the lowest level in more than four years. Some farmers also absorbed major quality reductions due to vomitoxin in wheat during summer harvest. “One factor that could push down acres is the aftereffect of Fusarium head blight and vomitoxin issues,” Bellm said. Some farmers in northern Illinois also lost part or all of some wheat fields to winterkill last winter and spring. On the plus side, Illinois wheat yields the last two years tied a record statewide average of 67 bushels per acre. Illinois farmers last fall

planted 740,000 acres of winter wheat, down 15 percent from the previous year, but up from 660,000 acres seeded in the fall of 2011.

The shortest crop on record statewide occurred in 2010 when farmers seeded just 330,000 acres of wheat. — Daniel Grant


EPA stops legal battle against poultry farmer

Page 5 • Monday, September 29, 2014 • FarmWeek

Programs

Online tools developed by three universities, including the University of Illinois, can help farmers project what each program will mean under different scenarios. The tools also will help farmers decide whether it’s worth updating their yield information. Find the tools at {www.fsa.usda. gov/arcplc}. “I can’t stress enough — some way, somehow our pro-

have applicable forms available to begin any processing of ARC/PLC actions,” he said. “We are hoping and anticipating that software and forms will become available soon with hopes of hitting the ground running as soon as we finish training our county offices.” Vilsack said that farmers could also technically now enroll in one of the new safety net programs — ARC or PLC. But he said he didn’t think farmers would have enough information to do so. A press release sent later from USDA said enrollment for the programs wouldn’t begin until winter. Vilsack said no definite deadline has been set to complete enrollment and that it would continue through “early next year.” Graden encouraged farmers to take time to research their options — use online tools, and attend webinars and workshops conducted by the University of Illinois and Illinois Farm Bureau — to determine which option is the best for their farm. Continued from page 1

FarmWeekNow.com

For additional details on ARC/PLC signup and what’s up with the farm bill, go to FarmWeekNow.com.

ducers have to get involved with the ARC/PLC decision tool designed by the universities or with somebody that’s able to provide assistance using the tool, so Illinois producers can make educated decisions,” Graden said. Signed into law in February, the Agricultural Act of 2014 sets agricultural and nutrition policy for the next five years. The bill eliminates direct

payments and modifies the target price program, replacing the Counter-Cyclical Payment (CCP) program with PLC. The bill also changes the revenue safety nets, replacing Average Crop Revenue Election (ACRE) with two ARC options — County ARC and Individual Farm ARC. Those who don’t make a decision will automatically be enrolled in PLC. All programs make payments on base acres. A farm’s total base acres cannot be increased, but farmers can keep the current base acres or reallocate base acres across program crops based on the actual program crops planted in 2009-12 years. Farmers also can update payment yields to 90 percent of the average yields from 2008-12 or keep their current payment yields at levels used in 2008 farm bill countercyclical payments. Updated payment yields are only used to calculate PLC. Both revenue safety net options will use payment yield established in the 2008 farm bill.

Iowa to host international energy conference biodiesel and bio jet fuels. Gong Ping Yeh, with the U.S. Department of Energy Fermilab, will be the keynote speaker. His research and interests in sustainable energy include wind, solar, biofuels, electric vehicles and improving energy efficiencies. International speakers will represent Mexico, Korea and Germany. Registration begins at 7:45 a.m. with the

Energy exports and fuel transport systems will be among discussion topics at the Midwest Energy International Symposium Oct. 9 at Quad-Cities Waterfront Convention Center in Bettendorf, Iowa. Speakers and panelists will examine how to build and expand critical truck, rail and water transport infrastructure for exporting Midwest fuels, including ethanol,

program scheduled from 8:30 a.m. to 3:00 p.m. Cost is $175 and includes breakfast and lunch. For more information, contact Landmark Solutions at 309-236-5019.

BY DEANA STROISCH FarmWeek

The Environmental Protection Agency (EPA) won’t appeal its federal court case against West Virginia poultry farmer Lois Alt, a move the American Farm Bureau Federation said “highlights the cynicism that drives the agency’s water agenda.” “EPA knows its effort to regulate perfectly well-run farms cannot withstand legal scrutiny, and the agency doesn’t quite know how to deal with that,” said AFBF President Bob Stallman. Both AFBF and the West Virginia Farm Bureau joined the suit on the side of Alt, he said. “Apparently, the agency would rather move on and continue pursuing its regulatory agenda farm-to-farm, but not defend it in court.” The U.S. Court for the Northern District of West Virginia ruled against EPA in October 2013, rejecting the agency’s contention that the Clean Water Act regulates ordinary stormwater runoff from the farmyard (nonproduction areas) at large livestock or poultry farms. That ruling, according to AFBF, “carries implications for tens of thousands of poultry and livestock farms nationwide.” In a blog post, {blog.epa.

gov/epaconnect}, EPA said it continues to believe Alt’s concentrated animal feeding operation (CAFO) needs a permit. “Although EPA thinks that the district court decision is wrong, we also think that it is time to stop spending resources on litigation about this CAFO,” the post read. “EPA is not going to appeal this decision; our resources are better spent remedying more serious, ongoing pollution across the country. “EPA remains committed to working with the agricultural community to ensure compliance with this legal requirement and to pursue enforcement when necessary. One district court decision does not change either the law across the country or EPA’s commitment to protecting water quality.” Illinois Farm Bureau’s Lauren Lurkins said court decisions such as these are important to establish boundaries for EPA’s jurisdiction under the Clean Water Act. Agricultural groups across the country are currently fighting a proposed EPA “waters of the U.S.” rule change they say would expand the federal agency’s jurisdiction.

How Does Farm Credit Promote Ag Safety? One Meal and One Safety Kit at a Time.

Applications due by Nov. 16

2015

At Farm Credit Illinois, your safety is our concern. That’s why we sponsor “Meals in the Field,” an outreach effort to deliver lunches and safety information to hundreds of farmers during National Farm Safety & Health Week.

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FarmWeek • Page 6 • Monday, September 29, 2014 Bernie Walsh, Durand, Winnebago County: Very little harvest activity to report on here in Winnebago County. We had some light rain last Saturday with scattered amounts of about .2 of an inch of rain. It seems like the bean leaves are hanging on a little longer than usual this year, so it may be another week before our soybean harvest gets under way. Hopefully, I will have some harvest reports next week. Stay safe. Pete Tekampe, Grayslake, Lake County: A nice, mild week in Lake County. We got .8 of an inch of rain on Saturday in two events. The first shower came at about 1 p.m. when I had five bales of hay yet to bale. I finished the hay on Tuesday. Though the temperatures have been in the 70s, it’s been mostly cloudy. Tough drying weather. Corn is continuing to mature. Early-planted beans are losing leaves fast, but the hollows are still green. We still have 10 days to two weeks before we start cutting. Think safety. Leroy Getz, Savanna, Carroll County: Rain for the week amounted to .3 of an inch of rain on Saturday and Sunday. Corn has dropped about 3 points in moisture during the week to an average of 27 percent. Some high-moisture corn has been harvested, was rolled and put into bags. Most soybeans have dropped their leaves. The weather looks good for natural dry down if we just have patience and let it happen. Hay cuttings are continuing. Ryan Frieders, Waterman, DeKalb County: Harvest is very slow to start in our area. There are a few fields of soybeans harvested. Other fields of beans seem to have stopped maturing altogether. Corn moisture is near 30 percent across hybrids. With warm temperatures forecast for the next few days, crops will hopefully continue to mature and harvest will start in full effect. Larry Hummel, Dixon, Lee County: I can hardly wait for harvest to start. All the equipment is ready to go, and I’m running out of stuff to do. In fact, yesterday I was so bored that I painted the post on the mailbox. We have some soybeans that will be ready in a few days, but it looks like we have to wait on some of the rest. I would expect that a few people might start poking into cornfields next week. What we really need is more weather like this past week to continue to dry the crops down. Ken Reinhardt, Seaton, Mercer County: Harvest so far is in low gear. Corn moisture on full-season corn treated with fungicide is still more than 30 percent on what I have hand shelled. I have done my 110-day corn, which ran 26 percent. Yield was even with the best I’ve had on continuous corn. Big kernels might account for slower dry down and extra yield above estimates. Soybeans are getting real close on the later Group II’s. Ron Moore, Roseville, Warren County: We did not receive any rain last week. That is a good thing since harvest is now here. Several combines are going now and many more will start this week. The moisture on corn is in the mid-20s and yields are in the mid-200s. Very much a pleasant outcome so far. No soybean harvest in this area yet. Should be this week if the weather holds. I did plant some cereal rye as a cover crop on the silage ground, so a little rain will help it come up. Please work safely this fall and take time to count our blessings that allow us to be good stewards of the land we call home. Jacob Streitmatter, Princeville, Peoria County: Dry, warm weather across the area has led harvest along. No great crops, just normal yielding crops. High-moisture corn still, but the moisture is coming down. Have a safe harvest.

Carrie Winkelmann, Tallula, Menard County: After a wonderful drying week, we have finally gotten started harvesting corn. It’s testing around 19 percent with great test weight and yields as good as we had expected. I have seen quite a few bean fields coming out as well, but we don’t have any ready. Stay safe out there! Tim Green, Wyoming, Stark County: Very good week. A few beans cut. Yields have been decent. I haven’t heard anybody really bragging much. It’s pretty much status quo, a little bit above average. Corn moistures are finally starting to come down. There are a few people starting to pick a little corn. Not a lot is getting picked right now. People are waiting for the moisture to come down. Be safe. Mark Kerber, Chatsworth, Livingston County: Corn harvest has begun in some areas. Halfprice drying at some elevators triggered an early start to get corn loaded into the pipeline for end users. Soybeans are turning as the Group II beans are close, but Group IIIs need a couple more weeks to be harvestable. This late summer weather has been ideal for crop maturity. It doesn’t take long to fill the cart and trucks with high-moisture, high-yielding corn. Prices have responded to a nationwide bumper crop. Ron Haase, Gilman, Iroquois County: Harvest began in the area this week. Some acres of corn and soybean were harvested, but not much. It was a busy week here on our farm. We hosted our last two Brazilian tour groups and have been busy getting our machinery ready. Some of our corn planted May 23 has not reached black layer and has the milk line 80 percent of the way down the kernel. All other corn is at physiological maturity. The hand samples of corn I checked ranged from 23.4 to 34.4 percent moisture content. The corn dried down between 4 to 6 percentage points over the past week. Kernel size has varied from 63,000 to 87,000 kernels per bushel. The sample yields have varied by 90 bushels per acre and have been more than 200 bushels per acre. The appearance of soybean fields has changed a lot over the past week. Area soybean fields are in the R7 growth stage, beginning maturity, and the R8 stage, full maturity. Local prices for Sept. 25 closed at $2.88 for nearby corn and $8.89 for nearby soybeans. Brian Schaumburg, Chenoa, McLean County: Harvest is in full gear with corn averaging 19 to 25 percent and yields are from 25 to 75 bushels per acre higher than actual production history yields. Soybeans are just starting and are coming in drier than first thought. It appears that the first third of harvest will be the easiest as elevators are being inundated with grain. Thank goodness for hedge accounts! Corn, $2.91; January corn, $3.09; fall 2015 corn, $3.38; soybeans, $8.83; January soybeans, $9.01; fall 2015 soybeans, $9.01; wheat, $4.42. Steve Ayers, Champaign, Champaign County: Meteorologists outdid themselves this week with a textbook week of corn and soy dry down with temperatures in upper 70s with low humidity and light winds. Of course, watching crops dry is about as exciting as watching paint dry, but so necessary! The week’s excitement came Saturday afternoon with thunderstorms during the Illini game with a two-hour delay. Fortunately, the Illini stormed back to win the game! We started bean harvest Wednesday, and the first load was 12.5 percent, even with areas of green beans. On Tuesday, kudos to the St. Joseph Fire Department for controlling an attic fire and Gifford Fire for containing a combine and 5-acre field fire. This week was Farm Safety and Health Week, so let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Several combines are running in our area this week and as a result, there are some fields that are already history and some just getting a good start. Have heard of some surprising yields well past the 200-bushel mark. Most soybeans are still green, but the calendar says it is time to start shutting down. Our rain gauge picked up only .1 of an inch of rain for the past week. Do be careful as each day is valuable to someone.

Tom Ritter, Blue Mound, Macon County: Beautiful week for work. Sunshine, pleasant temperatures. Corn harvest continues to roll along. Moisture is finally getting down, for the most part in the lower 20s. Yields continue to impress everyone. Probably approaching 20 percent completion with corn at this point. There’s been a major shift over to harvesting soybeans. With a good forecast, that will continue. Soybeans have only been harvested the last three days as of this report, at least those being delivered to our local elevator. Yields are very good. The 70s seem to be a common figure. I have heard a few reports of 80-bushel beans, but also some going in the 60s. Soybean harvest will really take off here over the weekend and into next week. Todd Easton, Charleston, Coles County: The big numbers keep coming as we get into the full swing of harvest. Cornfields have consistently been yielding almost 250 or more with moistures just starting to get into the teens. Soybean harvest has also started across the area in select fields with yield reports in the 70s. What a year indeed — now we just have to market it! Jimmy Ayers, New City, Sangamon County: No rain this past week. The combines are running strong. Corn is coming out as fast as guys can get it. There have been some lines going on at some elevators. The drying has been done by Mother Nature. We lost about 8 points this week. There was a load of corn that came in to one of the elevators at 15 percent. Others were 17 up to 23 percent. Yields are still better than normal. Probably not going to be as high as the chatter is. Of course, the coffee shop makes the talk bigger. We’re running between 170 and 270 for complete field averages. It just depends on the type of soil. A world of difference this year. The first number I heard on soybeans was 65. I’ve heard as high as 80. I haven’t cut any, but there are a lot of beans that are very close to ready. A lot of hay going up this week. Be careful. Doug Uphoff, Shelbyville, Shelby County: Harvest is in full swing here. Corn moisture levels have been 16.5 to 20 percent. Soybeans are coming out now, too. Didn’t think ours looked ready, but tried them and they were 11 percent. Yields were very good. Prices of corn are below $3 and beans went below $9 last week. Lines at elevators are getting long, too. Have a great week and be safe out there. Jeff Guilander, Jerseyville, Jersey County: Combines are getting fired up to make a big push over the next week. Corn yields had high expectations and have not disappointed. Soybeans are turning rapidly with some early beans being harvested. Yields will be highly variable with disease pressure and maturity. This week looks to be big. Remember to slow down and be safe. Dan Meinhart, Montrose, Jasper County: We had no rain this week. The nights have been cool, and the days have had moderate temperatures. A few combines are beginning to roll. The April-planted corn is running in the lower 20s. Some bean fields have been harvested. Most of the beans are turning, except the late-planted beans which are still very green. Harvest activity is expected to increase with favorable weather predicted for the next week. Rick Corners, Centralia, Jefferson County: Racehorse flash junior is getting busy. Corn shellers are rolling on the April-planted corn, and a few beans will be ready next week.


Page 7 • Monday, September 29, 2014 • FarmWeek Dave Hankammer, Millstadt, St. Clair County: This past week, farmers’ combines have been rolling through the cornfields. Yield reports have been from 180 to 250plus bushels per acre. Most of the grain needs to be dried, since the moisture level is around 20 percent. The common complaint I’ve heard is the grain moisture in the field is slowly drying despite the warm dry air that we have been experiencing for the last week and a half. Several soybean fields have turned brown with a few leaves remaining on the plants. Locally, soybean harvest hasn’t started, but I have heard of a few fields being harvested beyond the county lines. The yields from those fields were near the 70 bushel range. Several alfalfa fields were made into hay since weather conditions were nearly ideal for hay making. A huge celebration was held during the last weekend of summer here in the county. The city of Belleville, which is the seat of St. Clair County, celebrated its 200th anniversary. To recognize this landmark year, a 200-foot brat was grilled and served on the same size bun, setting a new unofficial record. The meat was donated by the pork producers and processed in Millstadt. All proceeds raised during this event were donated to the local food pantries.

Ken Taake, Ullin, Pulaski County: It’s been another week of great weather for harvest here in deep southern Illinois. We are a little more than one-third done with our corn harvest. Yields continue to be highly variable, from really good to pretty mediocre. Some of our corn moisture’s been as low as 16.5 percent, so it is drying down rapidly with the good weather. We should have some soybeans ready to harvest in about a week. Please take time and be careful in this busy season.

Kevin Raber, Browns, Wabash County: Warmer and drier weather has sped up corn dry down. When I started harvest, moistures were around 25 percent. Now what I’m harvesting is in the 17 to 18 percent range. I’ve seen a few fields of soybeans harvested, but haven’t heard any yields. I don’t think I’ll have any beans ready this week. Randy Anderson, Galatia, Saline County: Harvest is moving along as fast as the dryers will allow. Late April corn was 18 to 20 percent moisture; early May corn running 22 and some of the late May corn that I replanted in the same field was 30 percent. Beans are finally starting to turn. But it looks like a week to 10 days before we cut any.

Schedule harvest by scouting fields for stalk lodging Every year, just prior to harvest, those of us in the agronomy business warn growers about potential issues with stalk lodging. The vast majority of the time this warning is just that, a warning. Well, here I go again. I believe the risk for lodging is relatively high for the 2014 Duane Roelfs harvest. I believe that for three reasons. First, there appears to be a record corn crop out in the fields. Yield is a stress on the corn plant. The corn plant will do everything to realize those yields, even cannibalizing itself to get the nutrients needed to get those last few ounces into each ear. That cannibalization will open the corn plant up to stalk rots, which can lead to severe lodging. Also, a heavy ear on a

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

BY DUANE ROELFS

stalk has increased leverage, which through pure physics can increase lodging potential. The second reason is there has been less than normal sunshine during grain fill. A plant uses sunshine to convert the nutrients from the soil to the needed sugars for corn kernel development. This process is photosynthesis. Photosynthesis is slowed by cloudy days. If the plant cann o t g et th e n eed ed sug a rs through photosynthesis, it will try to do whatever necessary to continue fill the kernel. As previously noted, this leads to cannibalization of the stalk and increased potential for stalk rot development. T he third reason is that m a n y f i e l d s we r e s h ow i n g

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nutrient deficiencies much earlier than anticipated. T his could have been due to several factors, one of which could be excessive rainfall. The cliche “rain makes grain” certainly holds true this year, but at the same time, excessive rain could have carried nutrients, especially nitrogen, out of the root zone. Green leaves are needed for photosynthesis. Premature death of the leaves slows photosynthesis. The plant’s priority is to fill the kernel in any way possible. Grain on plants with stalk rot tends to dry slower than grain on healthy plants. Waiting for drier harvest moisture in fields with a high incidence of stalk rot will increase the time until har vest, thus

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increasing the risk of lodging. What can you do to further manage potential lodging issues? Schedule your harvest by using the pinch/push method to determine the degree of stalk rot present in a field or a specific hybrid. If more than 10 percent of the stalks squeeze together easily with the pinch method or collapse easily with the push method, that field should be scheduled for early harvest. You, as a grower, do have additional advantages. The first is availability of modern harvesting equipment. Low profile corn heads can pick up lodged corn. Corn heads also harvest eight, 12 and 16 rows. This is important because many of the entire ears that are lost occur on the outside rows of a corn head. The more

rows harvested in a pass leads to potentially fewer lost ears. Many combines now have guidance systems, which keep the machine perfectly on the row. This allows for smoother flow of ears into the combine, also significantly reducing ear loss at the corn head. Another advantage is technology. Plant breeders, using modern breeding methods, are developing hybrids with better stalk rot tolerance, faster dry down and increased leaf disease tolerance without sacrificing yield. Please make it a safe harvest.

Duane Roelfs serves as GROWMARK’s agronomy business director. His email address is droelfs@grow mark.com.

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The most people, on the ground, in Illinois, covering Illinois agriculture for you. Get to know Mike Orso

Director Rf News & Communications RFDRN, FarmWeekNow.com, FarmWeek Mike has uncovered what matters to you from places like Washington, D.C., Brussels, Cuiaba, and Nashville – Nashville, Illinois that is. He leads your team of dedicated professionals who all juggle notepads, digital recorders, cameras, and smartphones in today’s 24/7 news cycle, ensuring the RFDRN, FarmWeekNow.com and FarmWeek provide you with information you want.

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Randolph County leaders tour adopted state senator’s district

FarmWeek • Page 8 • Monday, September 29, 2014

Randolph County Farm Bureau leaders recently marked a couple of firsts — their first participation in Illinois Farm Bureau’s Adopt-ALegislator program and first visit to her suburban district. Randolph County Farm Bureau had been on the Adopt-a-Legislator waiting list for nearly six years. The county Farm Bureau “adopted” state Sen. Melinda Bush, D-Grayslake, who felt the county was a great fit because it is rural and far from her district. The county Farm Bureau quickly reached out to her, thanking the senator for joining the program and picking their county. She arranged for a district tour. Six county Farm Bureau members made the journey. The visit started with a town hall meeting the senator conducts a couple times each quarter to enlighten her constituents on state legislative news. County Farm Bureau leaders heard about some of the issues and concerns facing Bush’s district. After the meeting, Lake County Farm Bureau board members joined Bush, her staff and the Randolph County Farm Bureau delegation for an evening meal. The next morning, the BY RYAN FORD

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group met Bush at her district office in Grayslake for a full agenda and nine hours of sightseeing. The tour started with a stop at Golden Oaks Dairy, Lake County’s only remaining dairy farm. The senator visited the dairy for the first time. The dairy farm created a new opportunity by making compost from manure and grass clippings. The farm sells the compost to Chicago landscaping businesses. During lunch, the Farm Bureau delegation and senator met more local residents and her staff in Grayslake. Gurnee Mayor Krysti Kovarik discussed problems and challenges that come with a large population increase during a short period. All the nonfarmers said they assumed most Illinois farms are corporate farms and were surprised to learn more than 95 percent are family owned. The next stop was Tempel Farms Organics and a Lipizzan horse farm. The late Tempel Smith founded the farms. Smith’s grandson, Larry Leffingwell, served as tour guide. The family owns more than 6,000 acres, including 2,400 acres of conventional grain farming, 200 acres of organic farming, woods and pasture. Finally, the group stopped

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Illinois Farm Bureau

ACTION TEAMs Don’t have a crystal ball? You don’t need one! The special skills you bring to the table can create great things for agriculture. Twice a year, you meet with team members from around the state to develop a plan for a statewide project. If approved, your idea is set into action to produce results for Farm Bureau and agriculture. Work magic with a team that matches your interests. Choose from Quality of Life, Consumer Outreach, Membership Promotion, or Leadership Development. Applications are available at your county Farm Bureau. Return by Nov. 24.

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State Sen. Melinda Bush, D-Grayslake, holding the horse, recently hosted Farm Bureau members from Randolph and Lake counties. Left to right are Kari Luthy, secretary-treasurer of Randolph County Farm Bureau Young Farmers Committee; Gene Korando, Randolph County Farm Bureau Board secretary; Charles Schupbach, Randolph County Farm Bureau vice president; Bush; Larry Leffingwell, grandson of the late Tempel Smith; Richard Tanner, chair of the Randolph County Farm Bureau Governmental Affairs Committee; Kevin Luthy, Randolph County Farm Bureau president; and Ryan Ford, Randolph County Farm Bureau manager.

on the banks of Lake Michigan at one of the state’s largest marinas. Dave Suthard, manager of North Point Marina, described the economic challenges his industry

faces. The marina can hold 1,600 boats and was about half full. The senator plans to visit Randolph County at the end of September. The county

Farm Bureau will have two days to showcase its rich heritage and agricultural roots. Ryan Ford serves as Randolph County Farm Bureau manager.


Winnebago-Boone FB hosts state Rep. Nekritz on farm tour

Page 9 • Monday, September 29, 2014 • FarmWeek

State Rep. Elaine Nekritz, DNorthbrook, experienced a variety of Illinois agriculture recently during her annual visit with her “adopted” Farm Bureau in Winnebago and Boone counties. The representative met with Winnebago-Boone Farm Bureau directors for a farm tour. First, the group visited Friendly Franseen Acres. Jeremy Franseen provided an extensive tour of the nursery, barns, milk house and milking parlor. Visitors tasted samples of goat milk and cheese, and enjoyed samples of goat milk soap and lotion. McEachran Homestead Winery, which is located on a sesquicentennial farm north of Caledonia, served as the next stop. Dr. HerBY ANN MARIE CAIN

Boone County dairyman Thad Johnson, left, explains to “adopted legislator” state Rep. Elaine Nekritz, DNorthbrook, how his family uses large equipment on their farm. Winnebago-Boone Farm Bureau recently hosted Nekritz for her annual visit. (Photo by Ann Marie Cain, manager Winnebago-Boone Farm Bureau)

App provides calibration help

Need help calibrating your sprayer? University of Illinois Extension has as app for that. Called Spray Calc, the new smartphone app assists applicators with many of the calculations used when setting up and calibrating a sprayer. Scott Bretthauer, an Extension pesticide safety education specialist, developed the free app for Apple iOS and Android smartphone platforms. Spray Calc allows users to select from four main options: • Calibration: Allows users to calibrate four sprayer types — Aircraft, Ground Rig, Turf Boom and Boomless. • PSI for GPM: Allows users to calculate required pressure in pounds per square inch, or PSI, in order to provide a specific flow rate in gallons per minute, or GPM, or do the opposite. • Nozzle speed: Lists the minimum and maximum speeds for a specific nozzle. • Convert value: Assists users with various pesticide application-related unit conversions. Help menus provide users with guidance on the function of app components and definitions for many of the listed variables. “For most variables, touching the name of the variable brings up a definition of what the variable is and how it is measured,” Bretthauer said. Spray Calc is available at {itunes.apple.com/us/app/spray er-calibration-calculator/id899 216316?mt=8} for Apple iOS devices and at {play.google. com/store/apps/details?id=edu. illinois.extension.spraycalculator &hl=en} for Android devices. For more information or to ask questions, contact Bretthauer at 217-333-9418 or sbrettha@ illinois.edu.

bert Greenlee, owner, and Sue Sohner, vintner, provided a historical tour of the farm and winery. Greenlee discussed challenges of starting a local winery with the representative. A stop on the state line at Johnson Farms concluded the farm tour. Thad Johnson showed Nekritz the large equipment used on family farming operations. She saw a 24-row planter, combine, hay mower, rake, hay tedder, round and square balers, chopper, wagons and other equipment. Johnson explained how the family uses the equipment in their 400-cow dairy operation. The Johnsons also produce corn, corn silage, soybeans, wheat and hay.

Ann Marie Cain serves as manager of Winnebago-Boone Farm Bureau.

Dear Illinois farmer: As farmers, we have long prided ourselves on being good environ mental stewards. We know, perhaps better than anyone else , the importance of fertile soil and clean water. For many years, we have undertaken volunta ry efforts to preserve and protect natural resources. A process is underway in Illinois to formalize those efforts; to bring them together as part of a cohesive plan and to more accura tely quantify our successes when it comes to environmental stewardship – particularly as it rela tes to the health of waterways in Illinois and beyond. For more than a year, represent atives from Illinois agriculture have partnered with other groups and organizations on a strategy to improve local water quality and to address the state’s nutrient contributio ns to the Gulf of Mexico hypoxi c zone. This Nutrient Loss Reduction Strategy will build upo n existing voluntary, farmer driven efforts to optimize nutrient loss reduction while promoting incr eased collaboration, research and innovation. There are countless opportunitie s via best management practices for Illinois farmers to reduce nutrient losses on their farms. We recognize and have helped others to understand that there LV QR ´RQH VL]H À WV DOO DSSURDFKµ I RU IDUPHUV :H DOVR NQRZ WKDW IDUP HUV ZRQ·W EH WKH RQO\ ones who are part of the solution . Everyone – whether they live in an urban, suburban or rural area – will need to help red uce nutrient losses into the sta te’s waterways. In the coming weeks and months, the organizations referenced below will continue to provide information about the Strategy. We encourage you to learn all you can about the best manDJHPHQW SUDFWLFHV WKDW PDNH WKH PRVW VHQVH IRU \RXU IDPLO\ IDUP·V IX WXUH DQG WKHQ LPSOHPHQW and follow through with those pra ctices on your farm to improve and maintain the health of the waterways on which we all depend . Illinois Corn Growers Association Illinois Farm Bureau Illinois Pork Producers Association Illinois Soybean Association

With assistance from

Proudly supporting farmer-driven best management practices


Revised budgets reveal impact of lower Bond County anthem singer crop prices on Illinois farm returns earns FMC scholarship FarmWeek • Page 10 • Monday, September 29, 2014

BY DANIEL GRANT FarmWeek

Crop farmers face much tighter margins next year based on revised crop budget estimates released by the University of Illinois. The budgets reflect the drop in crop prices in recent months and the subsequent negative impact on returns compared to the previous run of strong profitability. “The major change has been a reduction in commodity prices,� said Gary Schnitkey, U of I Extension farm management specialist. Crop price estimates in Gary Schnitkey the September budgets are $3.80 per bushel for corn, $9.75 for beans and $5 for wheat, down considerably from June levels of $4.20 for corn, $10.50 for beans and $5.50 for wheat. Projections for operator and land returns next year on central Illinois high productivity land are $191 per acre for

corn-after-soybeans and just $138 per acre for corn-aftercorn. Return estimates for soybean production are noticeably higher at $206 per acre for soybeans-after-corn and $225 for beans after two years of corn. “Current prices favor soybean planting over corn planting by a relatively large margin,� Schnitkey said. “Unless relative corn and soybean prices adjust, there could be a large shift to more

soybean planting in 2015.� Corn profits typically outweigh soybean profits in central Illinois, while beans have a larger relative return advantage on less productive land, Schnitkey noted. Overall, corn return estimates are down about $300 per acre compared to the 2009-13 average, a period that likely will be viewed as a golden era for crop growers. “These new prices (for the 2015 budgets) result in very low returns and indicate the need to conserve cash,� Schnitkey said. Strategies to conserve cash include lowering or eliminating capital purchases, lowering fertilizer rates and seed costs via switching to lower-priced seed varieties, and reducing cash rents and other cash flows. If cash rents can’t be lowered, it may be prudent to give up some particularly high-priced pieces of farmland. Otherwise, if farm return estimates hold, significant losses in 2015 could cause the financial position of some farms to deteriorate, Schnitkey added.

America voted, and as a result, Jessica Ronat of Pocahontas ranks among the top four national anthem singers in the U.S. Ronat, a finalist in the FMC Stand & Be Heard Anthem Singing Contest, earned a $5,000 scholarship. Lindsay Webber of Colfax, Wash., won the contest and earned a $10,000 scholarship. The 19-year-old also won an all-expense-paid trip to Nashville to record with a professional music producer. Ronat, daughter of Bond County Farm Bureau Director Steve and Michelle Ronat, competed against 230 entries. Online voting and a judging panel initially narrowed the conJessica Ronat testants to four. Online voting, which ended Sept. 18, determined the winner. Ronat, 18, studies music therapy at Indiana Wesleyan University. She belonged to 4-H for nearly a decade and FFA for three years. Her family raises Katahdin Hair sheep and chickens.

Rural electric co-ops receive USDA loans

Two Illinois rural electric cooperatives will each receive $2 million from the USDA Rural Economic Development Loan and Grant Program (REDLG) to boost rural economic growth. Illinois Rural Electric Cooperative will use its loan to help Westermeyer Industries of Bluffs expand its air conditioning and refrigeration design business. Shelby Electric Cooperative’s loan will help expand IHI Turbo America, a Shelbyville automotive and marine parts manufacturer. Under the REDLG pro-

gram, USDA provides zerointerest loans to local utilities, which in turn, lend the funds to local businesses for projects that will create and retain employment in rural areas. Southern Illinois Coal Belt Champion Community Inc., a nonprofit corporation supporting economic and community development in five southern Illinois counties, received a $500,000 Microentrepreneur Assistance Program Loan. The nonprofit will use the loan to provide low-interest loans to small businesses and microenterprises.

U of I launches policy website

Make FAST STOP your first stop.

Research-based economic policy takes center stage at the new farmdoc Policy Matters website. Developed by the University of Illinois Department of Agricultural and Consumer Economics (ACES), the site can be found at {policymatters.illinois.edu}. The site offers a free subscription to receive email postings or an RSS feed. Although the site originated in ACES, it will include posts from faculty across the University of Illinois. Current policy articles include a look at farm conservation policy and environmental uncertainty created by global warming.

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Page 11 • Monday, September 29, 2014 • FarmWeek

DISCOVERING AGRICULTURE Above, Menard County fifth graders watch a stream simulation provided by Duane Friend, University of Illinois Extension environmental and energy stewardship educator. The station comprised one of five visited by 175 fifth graders from three schools as they attended the 9 th Ag Discovery Day sponsored by Menard County Farm Bureau, Menard County Soil and Water Conservation District and U of I Extension. Left, Kevin Bettis, Illinois Department of Natural Resources conservation officer, talked with students about wildlife, fish and endangered species. Other topics included farm machinery, rocks and minerals, veterinary medicine and recycling. Ag Discovery Day introduces students to agriculture and conservation, giving them a better understanding of ways they can appreciate agriculture and help the environment. Staff from the Illinois Natural History Survey, Illinois Recycling Center and Petersburg Veterinary Clinic also presented information. (Photos by Renee Deuth, Menard County Farm Bureau manager)


Take sting out of pest removal; use care when removing hornet nest

FarmWeek • Page 12 • Monday, September 29, 2014

SWEET BEEKEEPING LESSON

Sara Luthy, Schuyler County Farm Bureau Ag Literacy coordinator, demonstrates beekeeping clothing to Kristi Reusch’s second-grade class in Rushville. Luthy teamed with fellow ag literacy coordinator, Jean Barron, to teach more than 500 pre-K through fourth grade students about honey. Luthy and Barron read, “Honey Makers,� by Gail Gibbons to students and explained the job of the queen bee, how bees make honey and how honey gets har vested. Students made their own honey sandwiches. (Photo by Kelly Westlake, Schuyler County Farm Bureau manager)

Finding a hornet’s nest may be unnerving. Although this wasp provides benefits, it can be a concern if they build their nest near people. Even though called a hornet, the baldfaced hornet actually is a type of yellow jacket, according to Duane Friend, University of Illinois Extension energy and environmental stewardship educator. Unlike the yellow and black yellow jackets seen around garbage or discarded soda cans, baldfaced hornets are white and black, and prefer flies, spiders and caterpillars as a food source. Usually found in trees and shrubs, their nests can be built on the eves of buildings or in attics, according to Friend. The nests may measure more than a foot around and almost 2 feet from top to bottom. The nests are made from plant remains that have been processed by the workers. Control is warranted because baldfaced hornets are known for defending their nest, which poses a problem if the nest is close to activity or a medical threat to people who may be allergic to venom, Friend said. Night offers the best time to take care of a nest when hornet activity is lowest, Friend noted. He recommended wearing a hat, gloves, protective eyewear, long pants and boots, and using an insecticide labeled for wasps and hornets that will shoot spray from a distance. If using a flashlight at night, do not shine the light directly at the nest, he warned. Be sure the spray covers the nest entrance, he advised. Leave the nest in place for several days before removing, and then put it in a garbage bag for disposal. He recommended leaving a nest alone if its location doesn’t pose a threat. Baldfaced hornets will be killed naturally after a few frosts in the fall. The nest may be removed during the winter, or it will decompose on its own.

Most farm households hold off-farm jobs

Ninety-one percent of U.S. farm households have at least one family member working off the farm. And a recent USDA study shows farm operators and their spouses often hold management and professional offfarm positions. The study noted operators of larger farms — those with more than $50,000 in annual sales — and their spouses hold higher numbers of off-farm management and professional occupations — 35.9 percent compared to 31.6 percent metropolitan workers and 25.3 percent nonmetropolitan workers. Jason Brown and Jeremy Weber, USDA Economic Research Service economists, said the statistics suggest farm operators and their spouses possess a

strong ability to apply their farm knowledge and management skills to other employment areas. Management and professional occupations also paid $7 more per hour on average than sales and office support positions. About 56.2 percent of farm operators and 60.6 percent of spouses in off-farm professional and management positions hold college degrees. The study found 18.7 percent of farm operators primarily work off farm in construction. About 15.3 percent work in agriculture, forestry, fishing, hunting or mining, while 12.9 percent work in manufacturing. For spouses, 22.3 percent work in education and 19.7 percent work in health care.

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Page 13 • Monday, September 29, 2014 • FarmWeek

— Farm Partnership seeks landowners, buffer sites C OOK Bureau will host “Thank the Farmer” events

The Illinois Buffer Partnership, which includes Illinois Farm Bureau, GROWMARK and Trees Forever, seeks landowner applications for buffer demonstration sites in 2015. Applications will be accepted through Dec. 31. Buffer strips protect water quality and help control erosion around the state. This year, Trees Forever is celebrating more than 500 buffers growing nearly 2 million trees and shrubs in Illinois and Iowa, according to Shannon Ramsay, founding

president and chief executive officer of Trees Forever. Buffer site applicants agree to allow their buffer project to serve as a demonstration site for field days with landowner, farmer and community leader participants. Selected landowners may receive cost-share funding to help support their project. Participants will be reimbursed up to $2,000 for 50 percent of remaining expenses after the application of conservation reserve program or other federal,

state and local funding. For their buffer project, participating landowners may receive a 50 percent discount on FS/GROWMARK native species or cover crop seed, not including corn and soybean seed. For more information or an application form, call Debby Fluegel, Trees Forever Illinois coordinator, at 309613-0095 or email dfluegel@treesforever.org. Applications also are available online by visiting {trees forever.org/Illinois_Buffer_ Partnership}.

Soy scholarship offered to high school seniors High school seniors planning to pursue agriculture as an area of study in college may apply for the 2015-16 Secure Optimal Yield (SOY) Scholarship. Managed by the American Soybean Association and made possible through a BASF corporation grant, the one-time award totals $5,000. The scholarship winner must maintain successful academic progress and be in good standing with the college or university to receive the full amount of the scholarship.

Candidates may apply through Nov. 20 by visiting {soygrowers.com/award-programs/ soy-scholarship/}. Final selection will be made the first week of December during the ASA board meeting. The student will be notified prior to an official announcement made during Commodity Classic in Phoenix on Feb. 27, 2015. BASF sponsors the winner and one parent to attend Commodity Classic for two days to participate and receive special recognition at the ASA Awards Banquet.

Bidner earns 4-H alumni award

Craig Bidner, a McLean County native, has earned an Illinois 4-H Alumni Award for outstanding contributions to the 4-H program. Bidner owns Nikco Sports in Chesterfield, Mo. He also owns farmland in McLean, Champaign, Douglas and Piatt counties. He belonged to the Danvers Industrial Youth and Rugged Rambler 4-H Clubs of McLean County for 10 years. Bidner and his wife, Joy, founded the Gateway Gang 4-H Club in St. Louis and continue to lead the club. Bidner’s two children, Calvin and Ava, represent the fourth generation of 4-H’ers, and he serves as a fourth-generation 4-H leader. His parents are J. Gordon and Sandra Bidner of Danvers.

Pipeline information meeting set Landowners affected by plans of Energy Transfer Crude Oil Company (ETCO), LLC, to convert existing pipeline assets from natural gas to crude oil can attend an Illinois Farm Bureau informational meeting Thursday. The meeting will run from 7 to 9 p.m. at the First Christian Church in Salem. The pipeline plan will affect western Wayne County. Installation of a new, 30-inch pipeline will run 4 miles north of Johnsonville heading northwest to Patoka through

Clay and Marion counties. The program will feature Laura Harmon, IFB senior counsel, and Chris Byron, an Edwardsville pipeline attorney. IFB strongly recommends landowners consult with an experienced pipeline attorney prior to signing an examination permit or an easement for the pipeline. To register for the meeting, contact Marion County Farm Bureau at 618-548-2100, Wayne County Farm Bureau at 618-842-3342, or Clay County Farm Bureau at 618-665-3300.

Tuesday: • FarmWeek: “The Early Word” • Bryce Anderson, DTN • Amy Roady, Illinois Soybean Association: International Federation of Agricultural Journalists • Greg Lepper, Morgan County farmer: harvest conditions • Judd Hulting, Patriot Renewable Fuels; Sheri Fiewger, Landmark Solutions: Midwest Energy International Symposium • Kevin Daughtery, Illinois Agriculture in the Classroom: ag teacher of the year Wednesday: • Tim Schweizer, Illinois

Department of Natural Resources: archery deer hunting • Michelle Fluty, Prairie Farms Dairy: new fall milk flavors • Bill Bodine, Illinois Farm Bureau associate director of state legislation: update on fracking rules Thursday: • Frank Butterfield, Landmarks Illinois: Illinois historical sites Friday: • David Powell, GROWMARK: rootworm, monarch butterflies • Mike Doherty, IFB senior economist and policy analyst: economic update • “Horse Talk”

from 11 a.m. to 4 p.m. Sunday at Culver’s in Tinley Park and Matteson. Meet local farmers and help support the Foundation. For more information, visit {culvers.com}. OUGLAS — Farm Bureau Women’s Committee will meet from 10 a.m. to noon Oct. 15 at Smith House in Tuscola. Steve Niemann, Douglas County FSA, will speak. Call the Farm Bureau office at 253-4442 by Oct. 13 for reservations. AWRENCE — Farm Bureau will sponsor a bus trip to the Covered Bridge Festival in Mansfield, Ind., leaving at 6:30 a.m. Oct. 15 from the Lawrenceville IGA. Cost is $15 for members and $20 for nonmembers. Call the Farm Bureau office at 943-2610 by Oct. 14 for reservations. ACON — Farm Bureau and 95Q will sponsor Feed the Farmers this harvest season. Ninety-five complimentary lunches will be served at the following elevator locations at lunch time: Oct. 2 Blue Mound, Oct. 9 Niantic, Oct. 16 Emery.

D L

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ONTGOMERY — Prime Timers will meet at noon Oct. 15 at the Farm Bureau office. Ronda Lawson, Evergreen Place Supportive Living, will speak. Members 55 and older are invited to attend. Cost is $9. Call the Farm Bureau office at 532-6171 for reservations by Oct. 10. INNEBAGOBOONE — Farm Bureau will co-sponsor Boone County Farm Stroll, a selfguided tour of 14 farms, from noon to 5 p.m. Sunday. Visit web.extension.illinois.edu/bdo, winnebagoboonefarmbureau. org or the Belvidere Extension office for brochure and map. This free event is open to the public. No pets allowed. • Farm Bureau will host a barn dance from 5 to 10 p.m. Saturday at Paulson’s Agriculture Museum of Argyle in Caledonia. Cost is $5 and children 12 and younger are free. Evening will include a 50/50 raffle and bake sale.

W

“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.


FarmWeek • Page 14 • Monday, September 29, 2014

Families own majority Time for farmers to harvest big data of Illinois farms

probably not. However, many new vendors are rushing to the market with offers to help proCombines have begun to roll through some of the earlier-planted corn, and we are entering ducers with their data and may generate some concern. my favorite time of year. Big Data simply refers to the large datasets Most of the state enjoyed limited stress, that are being generated. High density and varistand establishment was fairly good, and the ety of data types means it will be difficult anagenetics planted have tremendous yield potential. Lower commodity prices have tempered the lyzing with traditional analytical tools. My second referenced term, the cloud, enthusiasm a little, but keep tabs on is used to describe computers that are your field conditions and schedule harlinked through the Internet or other netvest accordingly should standability works for processing and storage. The become an issue. data and software to process it don’t What should you be doing now as reside on a local computer. you prepare for harvest? I’ll leave the Should you be concerned about using obvious equipment discussion for those the cloud? You’re probably already using experts, but would offer the following it! Any time you use a credit card or get as it relates to information management. cash from a bank’s ATM or purchase Most combines today are equipped Sid Parks something online, you are passing transwith a yield monitor and GPS equipment. Make sure your equipment is ready to go, actional data via the “cloud” to some remote computer server network. checking connections, cleaning sensors and If your plans include utilizing yield data in starting with a clean data storage device. Follow fertilizer recommendations or for data analysis, the manufacturer’s recommendations on calirest assured we will do our best to protect your bration, and we’ll look forward to seeing what data and provide the value you’ve come to many are predicting as record yields. expect from FS. Speaking of data, it is rare to pick up a If you have questions, contact your FS Crop farm magazine or online source that doesn’t Specialist for help with these or other crop prohave some comments or stories about Big duction-related questions for your farming Data, the cloud or some other new technolooperation. gy. These are new terms for some, and their use often is followed with, “Should you be Sid Parks serves as GROWMARK’s agronomy concerned about the safety or use of your information services manager. His email address is data?” sparks@growmark.com. If you are using an ethical service provider,

BY SID PARKS

Of Illinois’ 75,087 farms, a vast majority — 86.5 percent — qualifies as family or individually owned. That’s the latest statistical analysis of the 2012 Census of Agriculture by Todd Kuethe, University of Illinois Department of Agricultural and Consumer Economics professor. Partnerships comprise the next largest share of farms at 6.1 percent, or 4,562 farms. Fewer than 5 percent of Illinois farms (3,716) are organized as corporations. Families hold 89.3 percent (3,319) of farms legally organized as corporations. And 97.5 percent of those (3,236) farms have fewer than 10 stockholders. Kuethe noted only 50 Illinois farms fit the popular notion of “corporate farms” as nonfamily owned corporations with a lot of stockholders. The census defines a farm as any place from which $1,000 or more of agricultural products were produced and sold, or normally would have been sold during the reference year. Those facts, Kuethe said, should alleviate a concern often expressed by those both inside and outside of the agricultural community about the belief in the “loss of the family farm” or “the rise in corporate farming.” Kuethe added farm owners have a number of reasons for wanting to incorporate. Corporations carry a number of income tax advantages, including different deduction limits and the ability to alter the fiscal calendar of the farm. In addition, corporations protect household accounts in the event of a lawsuit created by the farm operation. They also limit liability of corporate assets in the event of a catastrophic lawsuit. Corporations further ease intergenerational transfer by allowing the owners to gift or to sell units of the stock to the next generation, Kuethe said. At the same time, corporations carry additional expenses related to creating and maintaining necessary paperwork and filings. Kuethe further noted corporations are subject to capital gains tax on the value of shares.

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-$60.00 $47.02 40 lbs. (cash) $78.00-$86.00 $82.00 Receipts

This Week 61,649 *Eastern Corn Belt prices picked up at seller’s farm

Last Week 102,771

Eastern Corn Belt direct hogs (plant delivered) Carcass Live

(Prices $ per hundredweight) This week Prev. week Change NA $99.77 NA NA $73.83 NA

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

Steers Heifers

This week $153.00 $153.00

Prev. week $153.75 $153.75

Change -$0.75 -$0.75

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 $230.48 $230.28 $0.20

Lamb prices Negotiated, wooled and shorn, 107-158 lbs. for 138-166.76 $/cwt. (wtd. ave. 156.45)

Export inspections (Million bushels) Week ending Soybeans Wheat Corn 9/18/2014 17.2 18.6 40.1 9/11/2014 9.4 24.4 29.9 Last year 16.8 43.0 18.0 Season total 29.5 304.0 98.6 Previous season total 21.6 464.6 46.3 USDA projected total 1700 900 1750 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Will crop demand increase enough to raise prices? BY DANIEL GRANT FarmWeek

The focus of the trade currently revolves around crop supplies as harvest kicks into high gear after a slow start. But the possibility of stronger demand in the months ahead could provide support for the limping corn and soybean markets, which absorbed significant price declines this year. “While we talk about the bearish issue of supply, I feel lower prices will attract demand for feed and residual use,” said Rich Nelson, director of research at Allendale, Inc. Darrel Good, University of Illinois Extension economist, said USDA estimates reveal a modest year-over-year expansion of broiler chick placements of about 1 to 2 percent and an increase of about a half percent in the number of dairy cows. Analysts also believe the hog sector will use more corn in the months ahead via herd expansion or tweaks to the makeup of feed rations. “We feel there’s a lot of livestock demand waiting to buy this extremely cheap valued and good corn,” Nelson said. Elsewhere, corn supplies could slip in South America next year as Nelson believes farmers in Argentina and Brazil will plant more soybeans. “The high cost of corn (production) could be a problem (in South America),” Nel-

son said. “They (South American farmers) love (growing) soybeans, especially this year when they’re cheaper to plant (than corn).” In terms of exports, USDA projects 2014-15 marketing year corn exports at 1.75 billion bushels, down slightly from last year but up considerably from the recent low. Meanwhile, 2014-15 marketing year soybean crush (1.77 billion bushels) could increase 40 million bushels, while marketing year exports were pegged at 1.7 billion bushels, up 55 million bushels from a year ago. “The current pace of export activity is encouraging,” Good said. USDA on Tuesday will release grain stocks and small grains reports. The grain stocks

report essentially will project what’s leftover from the most recent marketing year. Nelson predicts USDA will estimate a minor increase in old-crop ending corn stocks and a slight decrease in soybean stocks. Either way, he believes it will have little impact on the markets. “The trade focus is on newcrop supplies,” he said. Many traders believe production forecasts will grow as harvest progresses. If realized, the big crops likely will continue to weigh on prices before the trade focus eventually could shift back to demand and South American production. “The implication of large crops for the magnitude of year-ending stocks obviously depends on the consumption response,” Good added.

Snap harvest photos for NCGA contest

As you’re heading to the field to harvest corn, grab a camera. The National Corn Growers Association has launched a new Fields-of-Corn Photo Contest to help tell the story of farming and corn harvest. While the contest opened in June to capture a full season of corn production, high-resolution photos may be submitted until Nov. 30 at {fields-of-corn.com/home}. A grand prize of $500 will be awarded. The top three entries in each category will also earn cash prizes. Categories include farm family lifestyle, farming challenges, growing field corn, scenery/landscape and still life from the farm. Photos will be ranked by members of the public, who will be asked to select their favorites using online Facebook “Likes.” The Top 10 photos in each category will then be judged by an impartial panel of professionals in the fields of journalism, marketing, advertising and agriculture. To vote, visit {fields-of-corn.com/vote#category/scenerylandscapes/order/newest}.


Corn Strategy

ü2013 crop: Even though corn prices continue to slip, there are indications the decline is exhausting itself. At this point, if you still have old crop, storing it for the long haul will pay dividends. ü2014 crop: With each day, the move down gets more overdone. It’s really a matter of defining “how low is low.” It should pay to store corn commercially unless the storage rates available to you are unreasonably high. Next winter/spring, we expect to see some $4 cash prices. If you need to price corn by early post harvest, use a move to $3.65 on December futures to make needed sales. If you move corn at harvest, have the basis locked up. vFundamentals: Talk of a larger output yet, along with more active harvest, kept the market on the defensive. There’s even been some talk about the dollar strength working against prices, but at these levels, and this supply/demand structure, the impact of that is limited. The Oct. 10 report will be important.

Page 15 • Monday, September 29, 2014 • FarmWeek Cents per bu.

Soybean Strategy

Sales still point to competitive environment for soybeans

Soybean export sales continue to accumulate at a steady pace, pointing to another aggressive fall/winter shipping campaign. This past week’s sales were unusually good with some of the sales tied to the agreement signed the previous week with the Chinese to sell another 4 million metric tons (mmt). Chinese purchases total just over 16 mmt, only 59 percent of the total they bought from us last year. There’s plenty of business

to be done with them yet with no sign their demand is slowing. Soybean meal sales have slowed recently, but the total is still more than double the highest historical level at this time. And 5 mmt is still only one-half the export business expected this year. If anything, lower prices for both will bolster demand, not undermine it. And we could say the same for corn export demand. AgriVisor endorses crop insurance by

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ü2013 crop: Spot premiums disappeared with the start of Corn Belt harvest. ü2014 crop: Early high yield results have reinforced the “larger crop” talk. That, and harvest, kept markets on the defensive. But slow maturity and weather threaten to drag harvest out, potentially relieving short-term downside pressure. Basis should improve if harvest is drug out, although higher transportation costs are weighing on interior basis levels. We see better postharvest prices, enough to justify short-term storage. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: For soybeans, in particular, the early harvest reports are not always a good indicator of the yield for the whole crop. This year, high early yields are coming from crops that were planted timely and in great conditions. The national yield could be projected slightly higher, but nowhere near the 50 bushel level some want to suggest. Fall/winter demand continues to look exceptional.

Wheat Strategy

ü2014 crop: Consider making catch-up sales if the December Chicago contract rebounds to the $5.40 to $5.50 range. Producers that are able and comfortable to carry wheat may do so with the goal of resuming sales at $6. ü2015 crop: A whole growing season is ahead for the winter crop. Better opportunities are likely for 2015 sales. vFundamentals: The International Grains Council has again increased its estimate for world

wheat production, now to a record 717 million metric tons (mmt). USDA is even more optimistic, projecting 720 mmt of output. World wheat production was 714 mmt in 2014. Russia and Ukraine will account for most of the year-on-year increase. The U.S. has been competitive in recent trade offers, but a rising dollar threatens future business. Surpluses in other major exporters are large and nondollar currencies are weak. U.S. wheat prices will remain depressed until sales pick up.


Farm program decisions in the new farm bill FarmWeek • Page 16 • Monday, September 29, 2014

The Agricultural Act of 2014 (the 2014 farm bill) has revised the farm safety net, requiring farmers and landowners to sort through a series of decisions to determine how the safety net will operate on their farms beginning with the 2014 crop year. Title I of the 2014 farm bill includes a price-based assistance program called Price Loss Coverage (PLC) and two versions of revenuebased assistance called Agriculture Risk CovJONATHAN erage (ARC). All proCOPPESS grams make payments on a percentage of the farm’s base acres instead of the acres actually planted to covered commodities. Owners of a Farm Service Agency (FSA) farm will be provided a onetime opportunity to either retain their current base acres or to reallocate their base acres to reflect the proportion of acres planted to covered commodities planted during the 2009-12 crop years. An election to reallocate base acres cannot, however, result in an overall increase or decrease in the farm’s base acres. Owners of an FSA farm will also be provided a single opportunity to elect to update payment yields for covered commodities, which are used to calculate the PLC payments. If a yield update is elected, the new payment yields will be equal to 90 percent of the average yield of the covered commodity in the 2008-12 crop years. Beginning with the 2014 crop year,

all farmers on an FSA farm must make a one-time, irrevocable election among the price (PLC), county level revenue (ARC-CO) and individual farm level revenue (ARC-IC) programs. The PLC versus ARC-CO election can be made on a covered-commodity-by-covered-commodity basis; however, ARC-IC applies to all covered commodities on the FSA farm. If ARC-CO is elected for a covered commodity, it is ineligible to receive PLC payments and is ineligible for the Supplement Coverage Option (SCO) created in the crop insurance title of the bill. If ARC-IC is selected, it applies to all covered commodities, and they would all be ineligible for PLC and SCO. Farmers involved in a farm operation must agree on this program decision for the 2014 crop year. If they fail to make a unanimous election for the 2014 crop year, they will not receive any payments for that crop year from the programs. Additionally, the farm will automatically be deemed to have elected PLC for all covered commodities beginning with the 2015 crop year. ARC-CO makes revenue-based payments on 85 percent of the covered commodity’s base acres when actual county revenue is between 86 percent and 76 percent of the benchmark county revenue. The benchmark county revenue is calculated using the five-year Olympic rolling average (drop the highest and lowest crop years) of county yields for the com-

modity and the five-year Olympic rolling average of its national prices. ARC-IC calculations include all covered commodities planted on the farm with revenue-based payments made on 65 percent of the farm’s total base acres. The calculations for ARC-IC must also take into consideration the individual farmer’s share of all farms in the same state in which the producer has an interest and for which Individual ARC has been selected. ARC-IC makes payments whenever the actual revenue for all covered commodities on the farm is between 86 percent and 76 percent of the benchmark revenue, which is calculated using a five-year Olympic average of the sum of the revenues (prices multiplied by yields for each commodity) for all covered commodities. Some initial conclusions are possible by comparing ARC and PLC (including updated yields and SCO). Keys for decision making include individual farm finances, break-even price levels, production costs, market expectations and crop insurance. For example, a break-even price for corn at $4.30 per bushel means the $3.70 per bushel PLC corn reference price will not be effective. The same for soybeans in which a break-even price of $10.70 per bushel is well below the PLC soybean reference price of $8.40 per bushel. In general, presuming trend yields for corn and soybeans, ARC-CO in 2014 will be effective in most Midwestern counties at prices that are above the Reference Prices, but below

Study tour reveals much more than infrastructure facts

best minds and productive workers are leaving. This leaves us with higher unemployment and a greater burden on welfare rolls. In Georgia, even livestock production is growing with the blessing of state government, while Illinois discourages livestock production. While Georgia must import most of its livestock feed, Illinois has feed supplies readily at hand. Georgia is proactive in helping businesses find what they need to start new ventures. As an unexpected result of the infrastructure tour, we need to return home with new desire to get Illinois on the road to economic development recovery by requiring our elected officials to solve this fiasco we call Illinois Government.

tainable development conference in Rio de Janeiro, Brazil. Representatives from 178 nations worked on the document, including President George H.W. Bush, who attended and signed the report for the United States. It is voluntary in every feature, is not a treaty, and is not compulsory in any way. It has no mention of collective farming, taking away our guns, Common Core or interfering with any country’s sovereignty. Nothing is or can be imposed by the United Nations. It speaks to items that Howard Buffet, Gates Foundation and Monsanto are working on in Ghana, Burundi and Malawi, Africa. And already, 582 U.S. cities have selected projects suggested in Agenda 21, which they believe will enhance their communities. Agenda 21 recommends things which Illinois Farm Bureau stands for: regional trade agreements. Infrastructure — locks and dams, roads and bridges. Cooperatives for both buying inputs and marketing crops. Organizations to ameliorate risks inherent to farming, such as credit availability, crop insurance, local legal protections, citizen participation in government, title records for land ownership, soil conservation, research centers, ag education, Extension services and more. Key concepts throughout Agenda 21

Editor: When a group of farmers toured southeastern ports earlier this month, they learned much about the needs of each port. Some of these infrastructure problems were environmental, deepening of channels and passage of the WRRDA bill with appropriation of funds for improvements. Most of the problems from Houston to Norfolk were unique to each system, yet they all had many things in common — not the least of which was financial assistance. Yet an underlining theme seemed prevalent in each state of which we in Illinois should take note. Each one of these ports was not burdened with a massive state financial crisis looming around every corner. Each group talked about how they were trying to advance economic development free of some state financial crisis that just will not go away. New businesses were encouraged by a state government that wanted to help new industries and boost jobs. After 20 years of financial and political gridlock in Illinois, we now have created a state known for its inability to solve problems and drive away economic development. We are losing population, and our

LETTERS TO THE EDITOR

J. LARRY MILLER Thompsonville

Editor’s note: J. Larry Miller attended the recent Illinois Farm Bureau Infrastructure Study Tour. The group visited ports in Texas, Louisiana, Georgia and Virginia.

Agenda 21 information refuted Editor: As a Farm Bureau member owning Illinois farmland, I am concerned about a recent FarmWeek letter regarding Agenda 21. The letter is full of misinformation. Agenda 21 is a report from a 1992 sus-

USDA’s projected prices. Currently, price expectations are the biggest component of the dec-

Learn more

The University of Illinois has led an effort to develop web-based decision tools and educational information in cooperation with USDA. The tool and substantial information on the programs and decisions will be available at the farm bill toolbox on the farmdoc site. Visit {farmbilltoolbox.farmdoc. illinois.edu}. sion, but farmers must keep in mind that it is a five-year decision covering crop years 2014 through 2018. If the marketing year average prices stay above the reference price — $3.70 for corn; $8.40 for soybeans — ARC-CO provides assistance with price declines, but PLC does not. If marketing year average prices collapse and remain extremely low — $3 or less, PLC might provide more assistance than County ARC, especially in years four and five of a price collapse.

Jonathan Coppess serves on the University of Illinois College of Agricultural, Consumer and Environmental Sciences faculty. Previously, he served as chief counsel of the Senate Committee on Agriculture, Nutrition and Forestry for Chairwoman Debbie Stabenow and as administrator of the Farm Service Agency at USDA. are decentralization and diversity because problems, practices and improvements will differ in various countries and cultures. Therefore, it says “a farmer-centered approach is key” for working on problems and discovering new developments in agriculture. After harvest is complete, if you have some downtime, look up {sustainable development.un.org/contents/docu ments}. Agenda 21 is a 351-page, quick read. Especially, go to “Strengthening the Role of Farmers,” on pages 297-299. It’s enjoyable reading.

ELDON MCKIE Kirkwood, Mo.

Letter clarification

A recent letter to the editor stated the American Medical Association performs testing of GMO products. While the AMA does not test GMO products, it has issued a report on the subject: “The AMA recommends that federal regulatory oversight of agricultural biotechnology should continue to be science-based and guided by the characteristics of the plant and its intended use, not by the method used to produce it. The AMA also believes that there is no scientific justification to date for special labeling of genetically modified foods.”


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