Illinois voters face five referendums on the fall ballot, including tax and minimum wage issues. page 4
IFB members asked to act and urge House to block WOTUS efforts Monday, September 8, 2014
BY CHRIS ANDERSON FarmWeek
Periodicals: Time Valued
Illinois Farm Bureau members should contact their U.S. House representatives Monday, encouraging them to support HR 5078. The Waters of the U.S. Regulatory Overreach Protection Act would block an Environmental Protection Agency (EPA) proposal to redefine “waters of the U.S.” House members expect to consider HR 5078 Tuesday. Reps. Reid Ribble, RWis., and Kurt Schrader, DOre., plan to offer HR 5071 as an amendment to HR 5078. Called the Agricultural Conservation Flexibility Act, HR 5071 would repeal EPA’s Clean Water Act interpretive rule issued in March. The American Farm Bureau Federation and Illinois Farm Bureau support both bills. Adam Nielsen, IFB’s national legislative director, said IFB members should visit the Legislative Action Center at {www.ilfb.org} for information about the call to action. IFB initiated the national Ditch the Rule Day of Action, he added.
“Momentum is building. A sizeable number of bill cosponsors were added during August recess. This shows that many state Farm Bureaus are actively pressing members of Congress,” said Nielsen, who leads a dozen IFB members this week on a Leaders to Washington trip. Participants are meeting with their representatives to urge opposition to the EPA proposed rule. To further bolster opposition, IFB joins 23 other business organizations and farm groups at a news conference Monday in the Sangamon County Farm Bureau Building in Springfield. Members representing the Home Builders Association of Illinois, Illinois Coal Association and Illinois Manufacturers’ Association will provide statements. “The proposed rule changes greatly expand the regulatory power given to the EPA by Congress,” said Jerry Peck, Illinois Manufacturers’ Association associate director of government affairs. “The
Yield tour results indicate Illinois could be a corn “superstar,” producing consistently high yields. page 5
Hay producers continue to face major harvest headaches due to wet, humid weather conditions. page 10
PUMPKIN HARVEST ROLLING
Two sections Volume 42, No. 36
John Ackerman of Morton, left, leads a busy pumpkin harvest crew, including James Leigh of Minonk and David Mooney of Peoria. Ackerman grows more than 160 varieties on 28 acres. Learn more about pumpkin harvest on page 3. Visit {FarmWeekNow.com} to see more pumpkin pictures. (Photo by Ken Kashian)
resulting confusion and regulatory burden would harm Illinois manufacturers who require permits to build, grow and expand day-to-day operations. These overreaching rules will have a significant economic impact on our state’s job creators.” On Tuesday, Mercer Coun-
ty Farm Bureau members plan to gather at noon in their Aledo board room with iPads and laptops to draft and send comments opposing EPA’s “waters of the U.S.” proposal. IFB’s Director of Natural and Environmental Resources Lauren Lurkins will be on call
to answer questions. “We hope members can help each other brainstorm ways the proposed rule will affect their operations,” said Kendra Bolen, Mercer County Farm Bureau manager. See excerpts from IFB members’ letters to the EPA on page 2.
learned about infrastructure issues facing the south and southeast. “Illinois farmers are a vital part of the U.S. economy,” Fielkow told FarmWeek. “It is critical that they are able to ship their product to national and international markets on a timely basis. To accomplish this, they must have access to a vibrant multimodal transportation system.” He said finding qualified drivers represents the biggest issue facing the trucking industry. The average age of drivers, he said, is 55.
“That’s not a good fact,” he said. Turnover ranks highest at larger companies, while more local companies that allow drivers to be close to home, have lower turnover, he said.
rail debate” occurring in Washington, D.C. “The reality is we need both,” he said. “There shouldn’t be a truck versus rail debate.” He said infrastructure improvements should be funded by the fuel tax, but he noted that the tax hasn’t been indexed to inflation for years. Currently, he said, Congress deals with infrastructure on an emergency basis. “The infrastructure problem is long term, and we’re dealing with it in the short term,” he said.
‘Storm’ brewing for trucking industry BY DEANA STROISCH FarmWeek
The trucking industry faces a “perfect storm” of increased government regulations, a shortage of drivers, and increased costs of insurance and equipment, according to Brian Fielkow, president of Jetco Delivery. Fielkow, who also serves as chair of the intermodal committee of the Texas Trucking Association, outlined transportation issues last week to a group of farmers participating in Illinois Farm Bureau’s Infrastructure Study Tour. The group
More about IFB Infrastructure Tour — page 2
Younger workers are looking for jobs that allow them to “have a life.” Fielkow said about 6.9 million people are employed in trucking-related jobs. He pointed to a “truck versus
www.facebook.com/illfarmbureau
Quick Takes
FarmWeek • Page 2 • Monday, September 8, 2014
NEW NCGA CEO NAMED — Chris Novak will become CEO of the National Corn Growers Association Oct. 13 when cur rent CEO Rick Tolman retires. Novak cur rently ser ves as CEO of the National Pork Board, a position he has held since October 2008. Prior to that, he was executive director of the Indiana Corn Marketing Council, the Indiana Corn Growers Association and the Indiana Soybean Alliance. Novak also has ser ved in positions at Syngenta and the American Soybean Association, and worked on Capitol Hill. GENOTYPING CENTER SITE SELECTED — A new National Ag ricultural Genotyping Center will be located in Farg o, N.D. National Corn Growers Association (NCGA) Corn Board members announced they selected the site after visiting Decatur and Farg o. The National Ag ricultural Genotyping Center will translate scientific discoveries, such as infor mation from the maize genome project, into solutions for production ag riculture, food safety, functional foods, bioenerg y and national security. “This is a first-time-ever, huge step for a far merled association that gives g rowers more influence on research agendas,” said Richard Vierling, Ph.D, NCGA director of research. Vierling led a five-member Research and Business Development Action Team, which ser ved as the site selection committee. Corn board members approved the final recommendation. NEW LINCOLN COLLEGE TRANSFER PLAN — High school students considering ag riculture careers may want to check out a new transfer prog ram at Lincoln College in Lincoln. College leaders signed a transfer ag reement with the University of Illinois’s College of Ag riculture, Consumer and Environmental Sciences (ACES). Lincoln College students who meet the prog ram criteria may transfer to the University of Illinois UrbanaChampaign campus to pursue one of nine majors offered in the college of ACES. T he majors include ag ricultural and consumer economics, animal sciences, crop sciences, food science and human nutrition, hor ticulture, human development and family studies, ag ricultural leadership and science education, natural resources and environmental sciences, and technical systems manag ement. U of I has similar transfer ag reements with 24 community colleges, but this is the first time it’s signed such an ag reement with a private college. Lincoln College has similar transfer ag reements with St. Francis Medical Center College of Nursing in Peoria and MacMur ray College in Jacksonville.
(ISSN0197-6680) Vol. 42 No. 36 September 8, 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
Participants of Illinois Farm Bureau’s Infrastructure Study Tour take a close look at a ship docked in Alma, La. The weeklong tour included stops at Port Arthur and Galveston, Texas; Port of South Louisiana, New Orleans, La.; Georgia Ports Authority, Savannah, Ga.; and Port of Virginia, Richmond, Va. FarmWeek will feature more stories about the tour in the Sept. 15 edition. (Photo by Deana Stroisch)
Tour participants learn state of transportation
“This has been a true infrastructure tour,” said Tamara Nelsen, Illinois Farm Bureau’s senior director of commodities. She noted that this year’s annual tour — the first to occur in the United States — included seven ports and one navigation district in four states. In addition to ports, the group met with officials from
grain handling facilities, railroads, transload facilities and a state Department of Agriculture. Larry Beck, a farmer from White County, said the trip helped him realize other states face the same challenges Illinois does — from dealing with permit delays from the Environmental Protection Agency to budget restraints. Port officials reported years of delays in getting project approvals. One company said it took five months to get a permit for routine dredging. Nelda Burnett from Massac County said she was impressed at the volume of products moving through ports — and the variety. “Our focus has been on agriculture, but we’re seeing so many other things that just blew me away,” she said. Several port officials in Louisiana and Georgia discussed plans to deepen nearby waterways in conjunction with the Panama Canal expansion.
The Port of Galveston, for example, will consider returning to the container business because of the Panama Canal project. “I can see how important it is to maintain and deepen those waterways because it’s going to save a tremendous amount of money in the long run — and that’s so important to us all,” Burnett said.
It’s not too late to let Environmental Protection Agency (EPA) officials know how their proposed rule to redefine “waters of the U.S.” will affect your farm. Comments may be submitted until Oct. 20. Members who want to comment should contact their county Farm Bureau for assistance. Here are excerpts from letters written by Illinois Farm Bureau members and submitted to EPA. Patrick Poepping, Quincy I am a civil engineer involved in public works development. One of the most costly parts of our projects is time delays. Recently, there has been some movement on the part of Congress to address this issue in projects such as highways. Now we have before us your
proposal, which is a step back by greatly expanding the scope of federal jurisdiction by “clarifying” the definition of waters of the U.S. This clarification is nothing more than adding significantly to the regulatory burden for those of us who must deal with trying to get projects out in a reasonable time. In this time of reduced funding for vital infrastructure improvements, we certainly do not need to add any more regulatory burden and its associated overhead to projects. This proposed new waters of the U.S. definition is an unjustified invasion of property rights, a vast increase in regulatory authority, and simply needs to be stopped! Greg and Pat Zak, Springfield My wife and I have a 300-acre
hardwood tree farm in Pike County. In 2010, we were selected as the Outstanding Tree Farm of the Year. The proposed rule will require me to get a permit if there are jurisdictional wetlands (low spots) or ephemerals (drainage areas) within fields or ditches beside or within my timber. The proposed rule does not provide clarity or certainty as EPA has stated. The only thing that is clear and certain is that, under this rule, it will be more difficult to farm or make changes to the land — even if those changes would benefit the environment. I work to protect water quality regardless of whether it is legally required by EPA. It is one of the values I hold as a farmer.
BY DEANA STROISCH FarmWeek
From government regulations to financial constraints, a dozen Illinois farmers last week learned about the challenges facing the nation’s ports, rails and waterways. The group completed its weeklong Infrastructure Study Tour Saturday, making stops in Texas, Louisiana, Georgia and Virginia.
FarmWeekNow.com
Go to FarmWeekNow.com for additional coverage and interviews from the Infrastructure Study Tour.
Deana Stroisch
FarmWeek Agricultural Policy Editor Deana Stroisch accompanied the group and will write more reports on the trip on {Farm WeekNow.com} and in upcoming issues.
IN THER WORDS: Members write EPA about ‘waters of U.S.’ concerns
Pumpkin crop fares well on Tazewell County farm
Page 3 • Monday, September 8 2014 • FarmWeek
Looking fine on the vine John Ackerman, a Tazewell County Farm Bureau member, believes corn and soybean harvest could be a bin buster on his farm as growing conditions for those crops have been excellent. But he admits to being pleasantly surprised this late in the season to see great looking pumpkin stands, too, as that crop doesn’t typically fare as well in cool, moist seasons. “I have 30 acres of canning pumpkins and 30 acres of ornamentals, and both look good,” Ackerman of Morton told FarmWeek. “I’m a little surprised they look as good as they do. Pumpkins generally do better in drier weather.” Ackerman spread the risk for his ornamental pumpkin crop by planting 160 different varieties in nine successive plantings. “It really spreads out my risk,” Ackerman said of his staggered pumpkin planting schedule and variety mix. “I’m still a little concerned about (recent) moisture, though,” he continued. “If it stays wet, we could start to see disease (in the pumpkin patch).” This marks the 15th year he has grown ornamental pumpkins. He started harvesting that crop the last
week of August. “Labor Day really kicks off the beginning of the fall decorating season,” he said. Ackerman and his family enjoy such good success with their ornamental pumpkin business they expanded production from 1.4 acres 15 years ago to the current mix of 30 acres. They also added a corn maze, hay wagon rides, school tours and other attractions to make their farm an agritourism stop near Morton. The city, known as the pumpkin capital of the world, produces and processes more than 80 percent of edible pumpkins in the U.S. Ackerman has grown processing pumpkins since the early 1980s. A Libby’s pumpkin processing facility sits just miles from his farm. He also grows wheat and apples, although those crops didn’t fare well this year. Ackerman plowed up his wheat crop for the first time in 30 years. “Being diversified is important to us,” he said. “When one crop doesn’t do well, others usually help make up for it.” The 48th annual Morton Pumpkin Festival will be held Sept. 10-13. Visit the website {mortonpumpkinfestival.org} for more information about that event.
U.S. Agriculture Secretary Tom Vilsack declared six eastern Illinois counties as federal disaster areas because a May 21 hailstorm destroyed the area’s strawberry crop, Gov. Pat Quinn announced last week. Quinn had submitted a disaster declaration request for farmers in Champaign, Douglas, Edgar, Ford, Iroquois and Vermilion counties. Farmers in those counties are eligible for federal disaster assistance, primarily low-interest loans. The area’s strawberry crop was reaching maturity
at that time. The entire crop, located primarily in Vermilion County, was destroyed. The federal disaster declaration extended to the contiguous counties of Champaign, Douglas, Edgar, Ford and Iroquois. “The damage from this storm was isolated, but severe,” said Illinois Agriculture Director Bob Flider said. Farmers who suffered crop losses from the May 21 storm have eight months to apply for loans from the Farm Service Agency.
The U.S. Environmental Protection Agency (EPA) approved four permits allowing FutureGen Industrial Alliance Inc. to inject carbon dioxide deep underground near Jacksonville in Morgan County. The identical permits mark the nation’s first Class VI underground injection permits for carbon sequestration. FutureGen plans to capture carbon dioxide produced by a retrofitted coal-fueled power plant formerly operated by
Ameren Energy Resources in Meredosia. The captured carbon dioxide would then be transported and injected underground via the four proposed wells that would be constructed in Morgan County. FutureGen’s goal is to capture and inject 1.1 million metric tons of carbon dioxide annually for 20 years. EPA completed a technical review of the permits and responded to more than 280 public comments before approving the permits.
BY DANIEL GRANT FarmWeek
Six Illinois counties receive federal disaster declaration
David Mooney, in hat, arranges pumpkins at Ackerman Farms near Morton. Owner John Ackerman, carrying pumpkins, cited above-average yields. Ackerman added a corn maze, hay wagon rides, school tours and other attractions to his farm near Morton. (Photo by Ken Kashian)
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Voters to face five state referendums on ballot FarmWeek • Page 4 • Monday, September 8, 2014
BY KAY SHIPMAN FarmWeek
Illinois voters will find five referendums in addition to national, state and local races on the November ballot. Earlier this year, the Illinois State Board of Elections determined two other potential referendums did not fulfill requirements to be placed on the ballot. Of the five measures on the ballot, two are binding referendums with voters’ decisions determining whether action gets taken, while three are nonbinding or advisory only in nature, according to Kevin Semlow, Illinois Farm Bureau director of state legislation. Two binding ballot questions focus on individuals’ rights. One would add a constitutional provision strengthening the rights of crime victims. A second would outline that no person could be denied registration and voting rights based on race, color, ethnicity,
gender, sexual orientation, religion, language or income. Nonbinding referendums pertain to a variety of issues. One asks voters whether they support raising the hourly minimum wage to $10 by Jan. 1, 2015. Currently minimum wage workers earn $8.25 per hour. A second nonbinding referendum relates to the so-called “millionaire’s tax.” The measure asks whether the state constitution should be amended to require an additional 3 percent tax on individuals who earn more than $1 million in income. School districts, based on the number of students, would receive that tax revenue. Currently, Illinois’ constitution enforces a flat tax with all taxpayers paying the same rate regardless of income. A third nonbinding referendum asks if any health insurance plan in Illinois that covers prescription drugs should also cover prescription birth control.
WOOL MATCHING AG LESSON
Kevin Daugherty, Illinois Farm Bureau education director, helps Samantha Appel, a third grader at Forreston Grade School, match wool with sheep as part of a game to match products with the crops and livestock that produce them. Last week, 45 cyclists traveled 240 miles through five northern Illinois counties to spread the message of agriculture and bicycle safety to more than 4,000 students during 18 school visits. The IAA Foundation’s 19th annual bike ride fundraiser for Illinois Agriculture in the Classroom raises nearly $40,000 in donations each year. Watch a video at {FarmWeekNow.com}. (Photo by Cyndi Cook)
NREC seeking research, ed proposals for 2015 The Illinois Nutrient Research and Education Council (NREC) seeks proposals for
use. Farmer ideas about related research and/or education needs are welcome by Nov. 3.
research and education on practices or programs to help farmers minimize environmental impact, optimize yields and maximize nutrient use. Farmers pay a 75-cent assessment per ton of bulk fertilizer to fund NREC and 25 cents to the state. Currently, NREC funds 15 projects that will be considered for continued funding. For 2015, NREC seeks ideas that complement ongoing projects or fill gaps in water quality improvement or crop production goals linked to nutrient
For details, visit {illinois nrec.org} and find links under “2015 RFP Documents.” Farmers may submit questions to Lauren Lurkins, Illinois Farm Bureau director of natural and environmental resources, at 309-557-3153.
Trees Forever celebrates its 25 th anniversary from noon to 3 p.m. Sept. 20 with a nature walk, field day and picnic at Starhill Forest Arboretum near Petersburg in Menard County. Space is limited for the free event and early registrations are required to reserve a spot. Topics include tree cultivar development, water quality and native species. Trees Forever staff will dis-
cuss a streambank stabilization buffer project that was installed in 2006. Guy Sternberg with his wife, Edie, developed the 48-acre arboretum. Register online at {treesfor ever.org/Starhill} or by calling Becky Smith at 800-369-1269, extension 112. GROWMARK and Syngenta are sponsoring the buffer site visit.
Trees Forever marking milestone with Sept. 20 nature walk, picnic
State to host Tri-National Accord
Illinois will host top agriculture officials from Canada, Mexico and the United States to discuss trade issues in the 23rd TriNational Accord. The meeting will occur Oct. 7-9 in Chicago. The accord is especially significant to Illinois’ agriculture industry, which exports more than 40 percent of its commodities. “No doubt about it, the economic vitality of the industry depends upon our ability to cultivate global markets,” said Illinois Agriculture Director Bob Flider. The Illinois Department of Agriculture, in conjunction with the National Association of State Departments of Agriculture, is organizing the meeting. The accord provides information exchanges among the U.S. state directors, secretaries and commissioners of agriculture, 10 Canadian provincial ministers of agriculture and Mexico’s state secretaries of agriculture and rural development.
Illinois farmers could claim corn ‘superstar’ title
Page 5 • Monday, September 8, 2014 • FarmWeek
BY CHRIS ANDERSON FarmWeek
Illinois could be a superstar this fall in terms of consistently high corn yields across the state. That’s one finding of the 25th Allendale Inc. Yield Survey. Conducted Aug. 18-29, the producer survey indicated Illinois farmers could harvest a record average yield of 199 bushels per acre. That compares to the Aug. 12 USDA average yield estimate of 188 bushels per acre. “We had the third highest producer participation rate in 25 years,” said Rich Nelson, Allendale chief strategist. “The survey confirmed what we’ve been hearing. It’s clear now that the nationwide corn yield will be over 171 bushels per acre.” The Allendale survey
pegged national corn yields at a record 171.9 bushels per acre for a total of 14.4 billion bushels. That compares to USDA’s estimate of 167.4 bushels per acre and production of 14.03 billion bushels. Nelson noted the survey proved surprising in terms of Illinois yield consistency across the state. In 2012 and 2013, producer surveys showed a sizeable yield difference across the state, he said. For soybeans, the Allendale survey estimated record Illinois yields at 55 bushels per acre compared to USDA’s estimate of 54 bushels per acre. The survey pegged national soybean yields at 46.4 bushels per acre and production at 3.88 billion bushels. USDA estimated yields at 45.4 bushels per acre with production totaling 3.81 billion bushels.
Remember claim deadlines during this year’s harvest
Farmers who expect to make revenue or yield claims should keep some deadlines in mind. Revenue protection claims must be submitted 25 days after announcement of the harvest price, which will be on or near Nov. 1, said Brad Clow, COUNTRY Financial manager of crop and field claims. Yield protection claims must be submitted by Dec. 26. Once a claim gets submitted, a COUNTRY claims adjuster will contact farmers to discuss the claims process. Adjusters will need to know when harvest gets completed, whether grain has been sold or stored, and whether grain is stored on farm or in commercial storage. If grain has been sold or placed in commercial storage, adjusters will need copies of
settlement or delivery sheets, and access to individual tickets. Farmers should contact their claims adjuster to measure bins before commingling grain if more than one unit of grain gets stored in a single structure. If a farmer believes a crop cannot be harvested, a field appraisal must be completed. “Good recordkeeping and the ability to identify where all the production originated will help expedite claims,” Clow said. “Keeping production separate by entity is essential. We wish everyone a safe and prosperous harvest season.” For more information about the crop claims process, view the COUNTRY 2014 Fall Harvest Checklist at {country crop.com}. Click on Crop Resources, then Crop Claims Information.
ILLINOIS AND TEXAS YOUNG LEADERS
“We can’t quantify the damage from sudden death syndrome (SDS) in soybeans, but we heard more reports of SDS and mold during the second week of the survey,” Nelson said. Elsewhere across the state, Fayette County Farm Bureau members pegged average corn
yields at 176.14 bushels per acre — the highest estimate ever recorded by yield tour participants. Sample yields ranged from 118 to 242 bushels per acre. Soybean yields in Fayette County could average 45.67 bushels per acre with a range of 30 to 68 bushels per acre
measured during the recent tour. Participants found SDS in some fields, but no evidence of white mold, said Stephanie Kraus, Fayette/Bond Farm Bureau manager. The Wabash County Farm Bureau yield tour indicated corn yields will average 169 bushels per acre. That beats the 12-year average of 141 bushels per acre, but won’t be the best crop ever harvested for some farmers. “We had a rainy planting season, and we didn’t get a perfect stand,” said Kent Broster, Farm Bureau president and Mount Carmel farmer. “Population is the key factor with yields. We’ve had a couple of years higher than 169 bushels.” Broster said he’ll likely begin harvesting in two to three weeks. Tour yields ranged from 149.5 to 203 bushels per acre.
The University of Illinois and the Energy Bioscience Institute (EBI) will host the 10th annual Illinois feedstocks symposium Sept. 24 at the IHotel and Conference Center, Champaign. Speakers will include Ener-
gy Crop Agronomist Emily Heaton of Iowa State University, Repreve Renewables Vice President for Research and Development Jeff Klingenberg, South Dakota State University Native Grass Breeder Arvid Boe, Univer-
sity of Minnesota Poplar Expert Bernie McMahon and Mississippi State University Energy Cane Researcher Brian Baldwin. For information or to register, visit {conferences.igb.illi nois.edu/bioenergyfeedstocks}.
Corn ears picked during a Topflight Grain tour northwest of Bement (Piatt County) indicate an average yield of 207 bushels per acre. The largest ears contain 18 rows. (Photo by Steve Ayers, Champaign County CropWatcher)
U of I, Energy Bioscience Institute hosting feedstocks forum
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Illinois Farm Bureau Young Leaders joined their Texas Farm Bureau Young Leader counterparts recently at several Illinois locations. IFB Young Leaders hosted the Texas TFB Young Leaders’ AgLEAD class. The group, seen above, toured Mississippi Lock and Dam 15 in the Quad Cities area. Stops included Mississippi Distiller and the John Deere facility. (Photo by Melissa Rhode, IFB membership-program director)
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FarmWeek • Page 6 • Monday, September 8, 2014 Bernie Walsh, Durand, Winnebago County: More of the same this week with two rains totaling about an inch. Sudden death syndrome has hit lots of the soybean fields, but some of the beans were fully podded and may not have as much of an effect as some of the longer season beans that weren’t as far along. We still need lots of warm weather to bring the crops along to maturity. It won’t be an early harvest in northern Illinois. Have a good week. Pete Tekampe, Grayslake, Lake County: We received .2 of an inch of rain last week. Early corn is turning fast and still looking good. Later-planted corn is still a dark green and also looks good. The bean story is much the same. It seems early beans are turning fast, but a lot of the change is caused by sudden death syndrome. The laterplanted beans don’t show as much damage and are still grass green. No hay was cut or baled last week. Leroy Getz, Savanna, Carroll County: Rainfall totaled 3.2 inches last week. I did get about 30 acres of hay baled in between the rains, and I just have 80 acres more to cut. Crops are showing signs of maturity. The milk line is one-half to two-thirds of the way down most corn hybrids. Some corn has been chopped for silage. Bean fields are showing some yellow leaves with a little sudden death syndrome in a few fields. Ryan Frieders, Waterman, DeKalb County: Crops continue to stay green and slowly mature. Early variety soybeans have finally started to change colors, but they are still weeks from harvest. Seed corn harvest in the area has begun in the last few days. We received another inch of rain. Ken Reinhardt, Seaton, Mercer County: There might be some record cold weather on the horizon. That might put us on track for an ‘09 type of big crop with quality issues. There is corn that is black layered and not far from harvest. It’s raining easy, too, which is a concern now. The other night’s 20 percent forecast produced an inch or two of rain. Ron Moore, Roseville, Warren County: We received .5 of an inch of rain last week. Crops are still on pace to mature in a timely manner. We should be chopping corn silage in 10 days or so. The beans are starting to turn yellow now. Harvest will be here very soon. We have about half of our cattle moved home. The grass is starting to slow its growth. Tim Green, Wyoming, Stark County: Crops are starting to look like fall is coming. Bean fields are starting to turn yellow and are dropping a few leaves. A lot of talk about sudden death syndrome and white mold. Nothing major, but farmers are watching it. Goss’s wilt started to show up about a week ago in certain varieties of corn on corn. The corn is starting to dry down. Farmers are getting ready for harvest. Don’t know when it will start, but there is a lot of talk about it. Mark Kerber, Chatsworth, Livingston County: September is here, and harvest is around the corner. Our elevator coffee goers brought in ears of corn every day, and they counted kernels and weighed them. Estimates varied, depending on which farmer brought in the perfect ear. Some brought in diseased soybean stems with nothing on them. With low commodity prices, producers need to be patient on dry down. Ron Haase, Gilman, Iroquois County: We received a range of 1.1 to 1.8 inches of rain Saturday (Aug. 30). Not too far south, they received 7 inches of rain. Most cornfields are at R5, or dent stage. Our corn planted at the end of May just reached the dent stage. Most soybean fields are at R6, or full seed stage. Many diseases are showing up in soybean fields as well. The local closing prices for Sept. 4 were nearby corn, $3.27; new-crop corn, $3.09; nearby soybeans, $12.53; new-crop soybeans, $9.69.
Brian Schaumburg, Chenoa, McLean County: Reports are now coming in from the Delta to as far north as central Illinois confirming this record-shattering crop. Heavy ear weights are making for 5 to 10 percent higher yields than previously thought. We are about a week away from starting corn harvest and soybeans will begin the end of September. Markets are giving us a reality check. Corn, $3.48, $3.21 fall, $3.61 fall ’15; soybeans $12.32, $9.75 fall, $9.82 fall ’15; wheat, $5.19. Steve Ayers, Champaign, Champaign County: Some elevators will offer half-price drying next week, so combines will be rolling. The only rain last week was .3 of an inch starting before midnight Labor Day. Crops are maturing nicely, especially corn. I found my first black layer kernel yesterday. USDA has our little corner of the world at corn 58 percent dented and 6 percent soy turning color. Let’s be careful out there! Wilfred Dittmer, Quincy, Adams County: Not much news from our neck of the woods, other than SDS is spreading to more fields and larger areas. I think yields will go down accordingly as there are already blank pods on the affected plants. Corn is turning fast in some fields, so there may be some surprises there also. Harvest will be firing up soon. We have had only .6 of an inch of rain since last report. Be careful wherever you may be. Carrie Winkelmann, Tallula, Menard County: Well, I spoke too soon about Kyle’s giant pumpkin. It busted open last weekend. Sad, sad day. Other than that, we are just working on equipment and waiting, waiting, waiting. Some corn has been harvested in the county. We received .25 of an inch of rain last week. Tom Ritter, Blue Mound, Macon County: Another week of fairly warm temperatures that also generated rain of another 1 inch. A few farmers have picked some early corn with most running 30 percent. We will probably see a fair number of people start next week. Starting to see close to 50 percent of yellow leaves on soybeans, which is two weeks or better ahead of normal. Farmers are very optimistic about yields and are anxious to get started, realizing it’s going to be a long harvest with a lot of loads to handle. Todd Easton, Charleston, Coles County: Cornfields are at, or very close to, black layer. My hand sampling has found 30 percent moisture at this point. The Coles County yield tour ended up being all over the place with a final estimate at 187. With that said, everyone can feel the exceptional weight in the ears, so it’s a safe bet that yields will probably come out better than that when the combines get to go. Soybeans have started turning yellow in most fields and look to be podded well, but time will tell. Current economics don’t support a lot of drying, but there has been some talk of farmers starting harvest next week. As we start into our busy season, one thing that cannot be stressed enough — safety first! Your family wants you back home at the end of the day. We had to help a good friend put his tractor back on four wheels yesterday. He is very lucky, which is not always the case. Doug Uphoff, Shelbyville, Shelby County: Corn harvest has begun. Premiums at the processors who need corn is in the 30- to 40-cent range with no charge for shrink. Moisture ranges from 25 to 30 percent. Yields are above 200 bushels. Soybeans are getting hit hard with SDS. Will probably only lose 4 to 5 percent of yield if pods were filled before they died, but it could be 10 to 15 percent if not. Hay needs cut, but the weather is not cooperating. Be careful out there and have a great week.
Jimmy Ayers, New City, Sangamon County: We had up to 1.7 inches of rain across the area. A few more combines are starting to roll. We actually got out ourselves and got moistures from 24 to 34 percent. The field monitor showed 222 bushels and the elevator showed 206.5. Not a lot of change in soybeans. We did a further study on sudden death syndrome, brown stem rot and iron chlorosis. We may have some brown stem rot we thought was SDS. There were several fields of soybeans that laid down with the amount of rain we have had. I’m not sure how that will effect production. David Schaal, St. Peter, Fayette County: My gauge caught 4 inches late Monday and early Tuesday. Places in the county received almost double that. On Tuesday morning, creeks were out of their banks. At this point, the rain is not helping anything on the crop side. Some diseases are showing up in corn and soybeans. Main concern is SDS coming on real strong in the soybean crop. There is also some frogeye showing up. Jeff Guilander, Jerseyville, Jersey County: Early beans have lost a lot of color in the last week and look to be just slightly behind schedule. The sudden death explosion has slowed. We are left trying to sort out the damage. The first affected beans have lost their leaves and look pretty rough. SDS has slowed in the later beans and is being covered up somewhat by maturing. Corn looks to be drying down with moistures in the mid-20s. I expect several combines to start next week. Dan Meinhart, Montrose, Jasper County: Rains moved into the area Monday night leaving 1 1/2 to 6 inches or more. Silage chopping came to a halt for a couple days. Fungicides and insecticides started being applied again later in the week on the late beans. Some SDS is showing up in the beans. Farmers are cleaning out grain bins and preparing machinery for harvest. Dave Hankammer, Millstadt, St. Clair County: Storms passed through the area during the night of Labor Day leaving up to 3 inches of rain in some gauges. Corn harvest got under way in the river bottoms prior to the holiday weekend. Grain moisture reports range from 18 to 25 percent. Upland cornfields are a couple weeks away from harvest with a few samples testing in the high 20s. Soybeans are several weeks away from being mature, although in the last few days, some plant leaves are starting to change for reasons other than symptoms of SDS or insects. A late season invasion of armyworms has been attacking alfalfa fields, pastures and even lawns. They can do a great deal of damage in a short period of time. Local grain bids are corn, $3.20; soybeans, $10.46; wheat $4.12. Have a safe week. Rick Corners, Centralia, Jefferson County: If some of the soybean fields get any worse with SDS, they’re going to be 100 percent brown. Some of the earlyplanted Group III beans are starting to show signs of getting ripe. I have heard of a little corn being shelled. Oh yeah, we had another 2 inches of rain. We don’t need any more until Thanksgiving. Kevin Raber, Browns, Wabash County: Rainfall amounts over the last week have been widely variable. Some places had small amounts with other areas receiving flooding rains. First-crop soybeans are showing a lot of SDS. Areas of fields affected are steadily expanding each day. Dean Shields, Murphysboro, Jackson County: There was very little rain last week. Some farmers have started harvesting corn, and the yields are good. Moisture is high, and corn will need to be dried. We have some sudden death syndrome. Other than that, the beans look good, but need a good rain. Still getting ready for harvest. Have a safe harvest.
Page 7 • Monday, September 8, 2014 • FarmWeek Ken Taake, Ullin, Pulaski County: Corn harvest is slowly getting started here in deep southern Illinois. A few farmers have gotten into the fields and moistures are as low as 17 percent on some early-planted corn. We hope to get into the field next week. Our county Young Farmers did some yield checks a week ago. Their results for Pulaski County were an average of 166 versus an average of 168 in 2013. Alexander County had an average of 169 versus an average of 176 in 2013. Hopefully by next report, I will have gotten into the fields.
Randy Anderson, Galatia, Saline County: It was a pretty quiet week here in the south. Just light showers in the first part of the week and watching the resistant weeds grow. At least I’m not the only one with this problem. As harvest is at the starting line, take a few minutes and spend it with the family. I see some long days and nights ahead.
Consider SDS strategies for 2015 Reports received Friday morning. Expanded crop and weather information available at FarmWeekNow.com.
While driving across the state, signs of sudden death syndrome (SDS) are popping up across most of the territory. SDS g ets its name from the sudden, late-season collapse of infected soyDavid Powell bean plants.
BY DAVID POWELL
The most common symptom of SDS in soybeans is the interveinal chlorosis of leaves. The veins tend to stay green, while the chlorosis between the veins will turn necrotic and eventually fall out. Late in the season, leaflets may also fall off, leaving the petiole attached to the stem. T hese symptoms are not actually the disease itself, but a toxin that is translocated from the soybean roots to the leaves. A blue mold on the
PROLIFIC CORN PLANT
A volunteer corn plant growing near CropWatcher Leroy Getz’ grain bin boasts 12 ear shoots. “It heard there was to be a really big crop, and it wanted to do its part. I realize most of them will not produce grain, but think of the ambitious potential they are showing,” Getz said. (Photo by Leroy Getz)
Listen.
soybean roots may be present with an SDS-infected plant. While there are no options to control SDS this season, there are management strategies that can be made next year to reduce the incidence of this disease. These strategies include: • Planting SDS-resistant soybean lines. Choose a soybean variety breeders have selected as being able to resist or tolerate SDS. Also, there are new commercial seed treatments available for SDS management. • Planting into the right conditions. SDS infects the soybean plant early in the season. By planting into warm soils of more than 60 degrees F, early soybean growth is improved and potential for SDS infection is decreased. • Managing soybean cyst nematode (SCN). The presence of SCN often correlates with outbreaks of SDS. SCN actively damages the soybean root system allowing for an access point for SDS infections. It is even thought that SCN may actively carry the SDS fungus. Plant SCN-resistant varieties and consider SCN seed treatments as a tool to mitigate the severity of SDS in soybeans. David Powell, Ph.D., serves as GROWMARK’s insect and disease technical manager. His email address is dpowell@growmark.com.
Click.
Milk prices continue to show strength
The Class III price for milk adjusted to 3.5 percent butterfat for the month of August was announced at $22.25 per hundredweight. The combined gains over the last two months total nearly 90 cents. Hot, humid weather has not only challenged the dairy farmer’s ability to put up decent hay, but has also placed stress on milking cows. Cattle do not like the warmer, humid weather, and dairy farmers’ bulk tanks are showing the effects of this weather phenomenon. Milk production has suffered during this spell of humid weather, resulting in higher prices due to the missing milk. Dairymen are hopeful the pounds come back this week as more seasonal weather prevails.
Read.
The most people, on the ground, in Illinois, covering Illinois agriculture for you. Get to know Mary Kobbeman
RFD Radio Network® Producer & FarmWeekNow.com contributor Mary helps manage the madness behind the microphones (iPhones, iPads, etc.). She loves to help cover farm and rural family life, and tries to look for a happy ending when others may overlook one. As a producer, she juggles events, remotes, guests, and more. As a resident of rural Illinois, she ZRUNV ZLWK KHU FROOHDJXHV WR ¿QG VWRULHV WKDW PDWWHU WR KHU ± DQG \RX
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FarmWeek • Page 8 • Monday, September 8, 2014
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877.505.2265
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OOK — Farm Bureau will sponsor a giant pumpkin contest from 9 to 11 a.m. Oct. 25 at Puckerville Farms in Lemont. Full details and registration are available at {cookcfb.org/events}. DGAR — Prime Timers will sponsor a trip to Fair Oaks Dairy in Fair Oaks, Ind., at 8:30 a.m. Sept. 17. The bus will leave from the Kroger parking lot in Paris. Cost is $55 for members and $65 for nonmembers. Call the Farm Bureau office at 465-8511 for reservations and more information by Sept. 15. • Farm Bureau will host a 2014 farm bill meeting at 6 p.m. Thursday at the Farm Bureau building. Doug Yoder, Illinois Farm Bureau senior director of affiliate and risk management, will speak. This event is free and open to the public. Call the Farm Bureau office at 465-8511 for more information. FFINGHAM — Young Farmers will co-sponsor a kid’s fun run at 8:30 a.m. and a 5K run/walk at 9 a.m. Sept. 20 at the Effingham County Fairgrounds. Cost is $15 for kids fun run and $30 for 5K. Visit {active. com} for reservations. Call the Farm Bureau office at 342-2103 for more information. Proceeds will benefit local food banks. AYETTE — Farm Bureau will co-sponsor an all-terrain vehicle safety class at 10 a.m. Saturday at the Farm Bureau office. Call the Farm Bureau office at 283-3276 for more information. ENRY — Farm Bureau will host a farm bill overview seminar 10 to 11:30 a.m. and an on-theroad seminar 12:30 to 2:30 p.m. Sept. 19 at Western Illinois University Quad City Campus, Moline. Call the Farm Bureau office at 937-2411 for reservations. ANKAKEE — Farm Bureau will sponsor the Kankakee County growers yield check banquet at 6 p.m. Wednesday at the Kankakee County Fairgrounds. Doug Yoder, IFB senior director of affiliate and risk management, will speak. Call the Farm Bureau office at 932-7471 to register by Monday.
EE — The Foundation will offer two grants for up to $100 each to preschool through high school teachers to fund projects that promote agricultural literacy in the classroom. Applicants must be actively teaching in Lee County. Call the Farm Bureau office at 857-3531 or email leecfb@ comcast.net for applications. Deadline to apply is Sept. 15. • Farm Bureau will offer buy one, get one free slow moving vehicle emblems during September to celebrate National Farm Safety and Health Week. Call the Farm Bureau office at 857-3531 for more information. ACON — Farm Bureau will accept orders for 12-by-15-inch Farm Bureau signs. Cost is $10. Visit {maconcfb.org} for an order form by Sept. 30. For more information call 877-2436 or email jennifer@maconcfb.org. • Evergreen FS will offer used motor oil recycling 9 to 11 a.m. Sept. 15 at Evergreen FS, Macon, and 1 to 3 p.m. Sept. 15 at Evergreen FS, Maroa. ERCER — Farm Bureau will host a farm bill update 10 to 11:30 a.m. and an on-the-road seminar 12:30 to 2:30 p.m. Sept. 19 at Western Illinois University Quad City Campus. Call the Farm Bureau office at 582-5116 for reservations by Sept. 18. • Farm Bureau will sponsor a defensive driving course 10 a.m. to 3 p.m. Sept. 23 and 24 at the Farm Bureau office. Doug Sommer, Sommer Safety Sessions, will be the instructor. Members 55 and over are invited to attend. Cost is $15. Call the Farm Bureau office at 5825116 to register by Sept. 19. ONTGOMERY — Prime Timers will meet for lunch at noon Sept. 17 at the Farm Bureau office. The Back Porch Pickers will perform. Farm Bureau members age 55 and older are welcome to attend. Cost is $9. Call the Farm Bureau office at 532-6171 for reservations by Friday. EORIA — The Equine Committee will sponsor an equine workshop from noon to 3 p.m. Sept. 28 at the Heart of Illinois Arena, Peoria. Call the Farm Bureau office at 6867070 for more information.
Tuesday: • FarmWeek: “The Early Word” • Freese-Notis Weather • Lisa Benson, American Farm Bureau Federation: Rural Entrepreneurship Challenge • Monica Nyman, St. Louis Dairy Council: childhood obesity Wednesday: • Jeff Squibb, Illinois Department of Agriculture • Jean Payne, Illinois Fertilizer and Chemical Association: 2015 Nutrient Research and Education Council Request For Proposals
• Ron Ropp and Jim Williams, Barn Keepers of Central Illinois: Barn Keepers Tour Thursday: • Tim Maiers, Illinois Pork Producers Association • Janice Stillman, Old Farmers Almanac: 2015 weather predictions Friday: • Don Schaefer, Mid-West Truckers Association: trucking industry • Dave Lehman, CME Group: new-crop options • “Horse Talk” To find a radio station near you that carries RFD Radio Network, go to FarmWeekNow.com, click on “Radio,” then click on “Affiliates.”
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Page 9 • Monday, September 8, 2014 • FarmWeek
Fulton County takes agriculture to the races
Spoon River Speedway race fans recently won a chance to learn about agriculture. Fulton County Farm Bureau Agriculture Literacy Coordinator Tonya Holt developed a new program, called Agriculture’s Tools for Racing.
The program took place during a Meet the Driver Night at the dirt track near Liverpool owned by the Denney Family on their family’s farm. Holt modeled the program after the popular Farm Charms used to educate youngsters through the Illinois Agriculture in the Classroom program. She brainstormed about elements of racing familiar to children and adults, and tied them to an agricultural commodity. She created toolboxes that told race fans about corn providing ethanol. Soil forms the foundation of the race track. Tshirts worn to promote a favorite driver and the famous
Tiny toolboxes contain car racing-related items linked to crops and livestock. Tonya Holt, Fulton County Farm Bureau agriculture literacy coordinator, modeled the program after the popular Illinois Agriculture in the Classroom Farm Charms program and unveiled it at a Meet the Driver Night at a dirt track near Liverpool. Backpacks filled with school supplies, upper left, also were distributed during the event. (Photo by Elaine Stone, Fulton County Farm Bureau manager)
checkered flag contain cotton. Even race tickets contain harvested pulp and soy ink. Foods race fans enjoy also have agricultural connections — soda made with corn syrup; hot dogs containing chicken, beef and pork; buns containing wheat; nacho cheese containing dairy products; and of course, popcorn. Holt and a group of Fulton County Farm Bureau volunteers created the toolboxes from tins similar to those containing Altoids mints, painting them to match race track owners’ pre-
ferred machinery line, and attaching little handles to them. Agricultural commodities, or the items representing them, were bagged and labeled in advance. Children filled their own toolbox before the race, and received a paper explaining the importance of the tools to racing. The Fulton County Agriculture Literacy Coalition also provided 50 backpacks filled with school supplies, which were given to each child attending the event. Track employees and concessioners provided another 20 backpacks.
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FarmWeek • Page 10 • Monday, September 8, 2014
Inspect and repair your bins now to avoid harvest surprises
It’s hard to know what this fall has in store for you and your grain system, but all indications are leading towards a workout. Don’t rely on luck when it comes to your grain equipment. A preseason service check will help identify potential Randy Holthaus equipment problems and enable you to correct them before your bins are full of grain. Preventing downtime BY RANDY HOLTHAUS
with a preseason inspection will be money and time well spent. The following list contains items to be checked to prepare your grain systems for harvest. The first priority is safety. Inspect and make sure every shield is in place and working properly to protect you, your family, your workers and service providers. Take a walk around your entire facility and note every moving part and electrical connection. If you see anything that is not as it would be if it was brand new, fix it now so it doesn’t cause a catastrophe when you get caught up in the rush of the busy season.
Inspect empty bins for evidence of leaks, corrosion, insects and rodents. Wire brush or sand off red rust and re-coat with soy zinc primer or cold galvanizing paint. Clean out old grain, fines, chaff and dirt from bins and equipment. Inspect bin floors for collapse, holes or soft spots where supports may have failed. Flashing should be secure and not leaking grain into the plenum. Check the plenum for fines buildup or leaked grain. Seal evident air and water leaks. Seal concrete cracks to keep out water, insects and rodents. Make sure receiving and handling equipment is ready to run. Auger flight should have
flat edges. Sharp flighting causes excess grain damage, is dangerous to work around, is subject to failure at any time and needs to be replaced. Tubes, housings, leg trunk and spouting needs to be inspected for wear spots, discoloration, dents and general condition. Bearings should run free and accept lubrication readily. Pulleys, belts, sprockets and chains need proper alignment and tension, and should be inspected for damage or wear. Lube all joints and gear boxes to manufacturers’ specifications. Electrical equipment should be thoroughly inspected for exposed wires, loose connec-
many will see only three or four cuttings. Alfalfa producers cut forage every 28 days. If the crop goes too far beyond that window, it will become more lignified or “stemmy.� This reduces the relative feed value as well as its economic value. Grass hay producers face similar experiences. As the grass matures, it too becomes more lignified, resulting in a feed product that is less palatable for livestock and contains less protein. Jason Bunting, a Livingston County farmer, has customers
in dire need of hay. In an average year, he expects to have made 25,000 to 30,000 bales by Sept. 1. This year, he’s only made 12,000. “We are only servicing our customers hand-to-mouth and just giving them what they need on the short term,� said Bunting. Bunting likes to cut hay on a 28-day schedule, but
he’s never had a four- or five-day window to get it done. Much of the hay he’s baled has been lower quality. “There just is no quality hay out there. Everyone is in the same boat,� said Bunting. As a result of the rainy, humid weather, 60-pound small square bales cost $6 to $8 each.
tions, rodent damage, open junction boxes and general integrity by a trained professional before being tested. Make sure safety circuits and components are in place and operating properly. These general inspection procedures apply to all gas-fired equipment and accessories as well. Diligence now will pay big dividends in greater safety, reduced downtime and peace of mind when harvest gets rolling.
Randy Holthaus serves as GROWMARK’s grain systems operation manager. His email address is rholthaus@growmark. com.
Major headaches, weather woes continue for hay growers
Illinois represents a great place to grow hay, but curing the crop can certainly prove challenging. That’s what Illinois hay producers have experienced during the last month. Several weeks of humid days, coupled with seemingly daily rainfalls, have kept mowers and balers inside barns. As a result, Illinois will lose a hay cutting. In a good year, hay farmers may get five cuttings from a field. Due to the poor curing conditions this summer, BY JIM FRALEY
M A R K E T FA C T S Feeder pig prices reported to USDA*
This Week 75,234 *Eastern Corn Belt prices picked up at seller’s farm
STACK UP?
HELP US MEASURE ILLINOIS SOYBEAN COMPOSITIONAL QUALITY. We need your help with an important study on soybean value.
Last Week 79,886
The Illinois Soybean Association (ISA) is asking farmers in every Illinois county to provide 1 or 2 soybean samples from this year’s harvest to test protein and oil levels throughout the state. Your samples will help develop a better baseline of the compositional quality (protein and oil levels) of our soybeans that are going into the marketplace.
Eastern Corn Belt direct hogs (plant delivered) Carcass Live
(Prices $ per hundredweight) This week Prev. week Change $92.44 $93.17 - $0.73 $68.41 $68.95 -$0.54
USDA five-state area slaughter cattle price (Thursday’s price)
Steers Heifers
This week $158.00 $158.84
Prev. week $154.86 $155.00
Change $3.14 $3.84
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 $224.28 $218.51 $5.77
Lamb prices Negotiated, wooled and shorn, 126-161 lbs. for 140-165.50 $/cwt. (wtd. ave. 155.40)
Export inspections (Million bushels) Week ending Soybeans Wheat Corn 8/29/2014 1.4 28.4 34.4 8/22/2014 5.3 21.3 43.4 Last year 1.5 37.1 17.8 Season total 1594.7 240.0 1843.4 Previous season total 1312.0 342.1 696.1 USDA projected total 1600 1640 1920 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.
Jim Fraley serves as Illinois Farm Bureau’s livestock program director.
HOW DO OUR SOYBEANS
Total Composite Weighted Average Receipts and Price (Formula and Cash): Weight Range Per Head Weighted Ave. Price 10-12 lbs. (formula) $37.50-$53.54 $44.94 40 lbs. (cash) $67.00-$84.00 $80.42 Receipts
In order to salvage hay cut on a rigid schedule, Bunting resorted to making big, round bales, which he cuts, bales and wraps the same day. Air-tight sealing of the bales ensures proper fermentation to make haylage.
It’s easy and free for farmers to get involved: r *4" BTLT GPS PS TBNQMFT GSPN ZPVS GBMM IBSWFTU‡BOE BMM JOEJWJEVBM SFTVMUT XJMM CF LFQU strictly confidential r 5IFSF JT OP DPTU UP UIF GBSNFS‡BMM NBUFSJBMT SFUVSO QPTUBHF BOE UFTUJOH XJMM CF QSPWJEFE CZ *4" r 8F MM QSPWJEF ZPVS DPOãEFOUJBM JOEJWJEVBM SFTVMUT‡DPNQBSF IPX ZPVS CFBOT TUBDL VQ BHBJOTU *MMJOPJT CFBOT BU TUBUF SFHJPOBM BOE DPVOUZ MFWFMT To participate: 4JHO VQ BU *MTPZ PSH DPNQPTJUJPO RVBMJUZTVSWFZ PS DPOUBDU 1BU )FSSPO QIFSSPO!DFOUSFD DPN or (217) 352-1190). 8IFO ZPV SFHJTUFS XF MM TFOE ZPV B QBDLFU XJUI FWFSZUIJOH ZPV OFFE UP DPMMFDU BOE SFUVSO ZPVS TBNQMF T GPS UFTUJOH 8F MM SFUVSO ZPVS SFTVMUT CZ +BOVBSZ 'PS RVFTUJPOT BCPVU UIF TVSWFZ QMFBTF DPOUBDU 4IBSPO #BSE TCBSE!DFOUSFD DPN PS -FF 4JOHMFUPO (lsingleton@centrec.com) or call (217) 352-1190.
We know harvest is a busy time and sincerely appreciate your help with this important effort. LEARN MORE: ILSOY.ORG/COMPOSITION/QUALITYSURVEY ISAQ09149350
Corn Strategy
The world is NOT coming to an end
Listening to the market chatter this past week when prices broke to new lows of the move, the general tenor seemed to be that prices were not only going lower, but maybe even sharply lower. And to add insult, a lot of analysts were suggesting good prices may be permanently behind. The talk in market circles was the antithesis of the talk that one usually hears at the top of a bull market; prices will continue higher and good times are here to stay. But when you look at the fundamental structure from a longer term perspective, all that has occurred in the last couple of years is a move away from extreme tightness to a more “comfortable” structure, but not a burdensome one. We’ve only included a graphic depicting the world situation for coarse grains, but the ones for wheat and soybeans are not significantly different. We’ve only moved the structure back to levels that persisted in 200405 and 2008-09. Certainly nothing comparable to the late 1990s; certainly nothing comparable to the middle 1980s. From a price perspective, we don’t think 2004-05 offers good
insight because that came before the overall shift in commodity price structure. Today, the Continuous Commodity Index is just over 500. In that period, it was either side of the 270s, and in the early part of the move that eventually took it beyond 600. The 2008-09 time frame is a better parallel for a lot of reasons, but mostly that the overall grain market structure has some broad parallels. The one thing that is different is the economic climate. You’ll remember the end of 2008/beginning of 2009 as being the height of the economic “meltdown.” At the height of anxiety, December corn futures only touched $2.90. It was below $3 for part of two days, and it was only below $3.25 for part of five days. And that came with the peaking of the economic anxiety. Generally, wheat prices weren’t able to stay under $4.50. Soybeans were significantly lower than now with nearby futures touching $7.76. But they generally had little experience trading under $8.50 during that time. That was still in the early stages of the surge in Chinese soybean imports. Their imports have gone up 50 percent since then, and haven’t shown any sign of a sustained slowdown. Admittedly, these times are not fun. We remember 1977, but it gave way to better prices in 1978, 1979 and 1980. This one, too, will get better.
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ü2013 crop: This past week’s break had the appearance of a give-up. Coming at the end of a long decline, it tends to fit with a bear market exhausting itself. Slightly lower levels are possible in the short term, but there’s reason to expect higher levels by year’s end, enough to justify storing. As with all marketing opportunities, you are going to be looking at taking advantage of the forward premiums when prices do reach attractive levels again. For now, $3.70 to $3.80 is a good upside target for December futures. ü2014 crop: With big crops, it is not uncharacteristic for futures to bottom before harvest. Local transportation/storage issues could cause local cash prices to temporarily dip lower, but basis levels will quickly recover. Our target to resume sales is $3.70 to $3.80 on December futures. If you believe you need to move corn at harvest, make sure you have the basis locked up. vFundamentals: In the short term, USDA and harvest will dominate the market focus.
Page 11 • Monday, September 8, 2014 • FarmWeek Cents per bu.
Soybean Strategy
ü2013 crop: Tight old-crop inventories are keeping basis strong, and a slow start to harvest may tend to keep it strong. Still, the premium old-crop prices have over new will steadily disappear. ü2014 crop: As expected, November futures quickly dropped to $10 when minor support failed. They may even temporarily drop into the high $9s, but downside risk is getting small. At this point, we are more inclined to wait on higher prices to resume selling, looking for a post-harvest bounce on November to $10.50 to $10.80 at least. We still expect new-crop basis levels to be strong. ü2015 crop: The first 15 percent of the 2015 crop was priced at $12.07 basis November 2015 futures. vFundamentals: In the short term, the market focus is going to be on the upcoming USDA reports and harvest. Weather should not be ignored with the pattern suggesting frost risk is increasing. Even if not, wetness should slow harvest enough to keep the system
from being overwhelmed by new-crop supplies.
Wheat Strategy
ü2014 crop: The fundamentals remain bearish, but downside risk has become relatively limited. Producers that are comfortably priced, and able to carry wheat, should continue to target a move to $6 on Chicago December futures to make sales. ü2015 crop: Fewer acres may be planted in the next crop year and quality wheat could become scarce by the end of the current crop year. Better opportunities are like-
ly for 2015 sales. vFundamentals: Traders are approaching the wheat market tentatively as officials from Russia and Ukraine try to negotiate terms of a cease-fire. Risk premium is absent at this point and could quickly be reinjected if an agreement falls through. Russian wheat was priced out of the latest Egyptian tender; French wheat was back on the table. U.S. wheat remains uncompetitive and a climbing dollar is making trade terms even less favorable. Still, sales should pick up later in the year when importers seek quality wheat.
FarmWeek • Page 12 • Monday, September 8, 2014
Strange, new economic orbit afoot
Consider the calendar. It’s useful for keeping track of your schedule and your mom’s birthday, and remembering Arbor Day. But a calendar is also a marvelous tool for prediction. My calendar says there will be a full moon Sept. 9 and no moon Sept. 24. Astronomers have figured out the orbit of the moon so precisely that they can predict its phases years, decades and centuries in advance. And it’s printed on your calendar. I think about that at this time of the year because Purdue’s Department of Agricultural Economics does its economic outlook in August. I’m responsible for the general forecast — gross domestic product (GDP), unemployment, inflation and interest rates. Lately, some of our economic indicators seem to have taken on strange, new orbits. Take the unemployment rate. From 1961 to 2010, real GDP LARRY grew less than DEBOER 2.5 percent in 12 years, and every time the unemployment rate went up. During that same period, growth was more than 3 percent in 30 years, and in all but three years, the unemployment rate went down. That was an orbit you could count on. Then in 2011, real GDP grew slowly, and the unemployment rate dropped. Then it happened again in 2012. And in 2013. And it might happen this year, too, once the final numbers are in. It’s like the moon decided to reverse course. What’s going on? Well, the reason real GDP has to grow to keep unemployment from rising is that the labor force keeps growing. More people want jobs, so more jobs must be created or people will be unemployed. From 1961 to 2010, labor force growth averaged 1.6 percent per year. Since then, it’s averaged .3 percent per year. Since fewer jobs need to be created, unemployment can be reduced with slower real GDP growth. Some of the slowdown in the labor force is due to discouraged workers. These are folks who gave up looking for work because the Great Recession got so bad. They might return as the economy improves. But some of the slowdown is due to retirement by baby boomers. The oldest boomers turned 65 in 2011. For that reason, the labor
EPA “waters of U.S.” rule opposed for overreach
Editor: All water EPA controlled! Ditch the Rule? Ditch the EPA! Its new motto: “Rule Every Ditch.” Congress authorized such agencies so it would not have to work as hard or take the heat for unpopular and increasingly unreasonable dictates. What we now have is just as bad as “taxation without representation.” It is
force probably will grow more slowly from now on. In the future, real GDP growth above 1.5 percent will probably be enough to make the unemployment rate fall. Then there’s inflation. Too much money chasing too few goods causes inflation. Everybody knows that. From 1961 to 2008, there were 31 years when the quantity of money grew more than the output of goods and services measured by real GDP growth. In 19 of those years, the inflation rate topped 3 percent. There’s something there, though, that’s not a really tight fit. In 17 years, money grew less than goods, and in 14 of those years, inflation was less than 3 percent. There’s your orbit. Since 2008, the quantity of money has increased an average of 12 percent per year, way more than real GDP growth. Did inflation explode? Nope. The inflation rate has been less than 3 percent each year. It’s another orbit out of whack. What happened? There’s too much money. There’s too few goods. But the money isn’t chasing. It’s sitting around in bank reserves, corporate accounts and household savings. If it’s not being lent or spent, it’s not out there bidding up prices. There’s an alternate prediction rule for inflation. When the unemployment rate is high, the inflation rate goes down. From 1961 to 2008, there were 19 years when the unemployment rate was greater than 6 percent. In 15 of those years, the inflation rate went down. It dropped by an average of .6 percent per year. In 2008, the inflation rate (not counting food and energy) was 2.3 percent. The unemployment rate has been above 6 percent since 2009. So, using the past average, if inflation declined .6 percent per year for five years, by now the inflation rate should be negative. Deflation! Wrong again. Inflation has been low, but it hasn’t turned negative. Surprisingly, an older version of this orbit seems to be working better — high unemployment keeps the inflation rate low but steady. What’s life like for economic forecasters these days? The economic moons have changed their orbits, and our economic calendars are wrong.
Larry DeBoer serves as a professor of agricultural economics at Purdue University, West Lafayette, Ind.
Biggest crop ever modern technology success story After 40 years of farming, I think I’ve finally gotten it right: I’m about to produce my best crop ever. I won’t have the numbers to prove it until we harvest in another month or so, but it looks like our farm in Iowa will yield corn at a rate of 240 bushels per acre, up from a 10year average of about 187 bushels per acre. USDA estimates American farmers BILL HORAN will grow guest columnist more than 14 billion bushels of corn, an alltime high. Good soil and good weather explain a lot of our success. Yet the difference-making ingredient is the man-made miracle of technology. The genetics that help our crops grow and thrive benefit farmers and consumers alike. I’ll be the first to admit that some of our success this summer is pure luck. We’ve enjoyed humid days and cool nights, which are ideal for growing corn. In his book “40 Chances,” Howard G. Buffett writes that most farmers will live through 40 growing seasons — and so they’ll have 40 chances to get better at what they do. I’ve now had my 40 chances, and the most important thing I’ve learned is that our biggest improvements come from technology. The genetics behind our seeds allow us to grow bumper crops in years like the one we’re in. They also boost performance in more stressful years when the nights are too hot or the days too dry. Root systems are much larger than they were a generation ago, helping our cornstalks stand tall against the high winds that can blow them over. I’ll never complain about the kind of good weather we’ve enjoyed this summer, but it’s important to note that good weather for crops also can mean
LETTER TO THE EDITOR
“regulation without representation.” What is happening is what America’s enemies would have the EPA do to hurt the economy, end-run the Constitution and destroy our freedom. Those who would take offense at this statement are perhaps sincerely concerned about the environment, but nonetheless that is the result. The Bureau of Land Management, which attacked Ari-
zona rancher Cliven Bundy, is another agency being used to depopulate/re-wild and prevent development in large areas of the western states. These abuses of power by rogue agencies would be shut down tomorrow were it not for several dozen open members of the Congressional Progressive Caucus and who knows how many fellow travelers throughout Congress. DANIEL HARMS Bone Gap
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good weather for harmful pests. Through technology, however, we’re able to fend off the bad insects as never before. Instead of relying on crop protection tools that wipe out even the beneficial bugs, we can breed plants that resist the destructive ones specifically. Bumper crops excite farmers, but they make us anxious, too. The laws of economics say that large supplies lead to lower prices, and right now, corn is cheap. This is excellent news for consumers. Corn goes into thousands of everyday grocery store products, often in ways that aren’t immediately obvious. It also means cheaper gas because we transform corn into ethanol. This year’s huge harvest should end the food versus fuel argument. We can produce plenty of both. Nobody wants prices to drop so low that farmers struggle. One of the best ways to help farmers is to promote exports. We already ship about one-third of our corn to other countries. Yet, we can always send more, and our federal officials play an important part in making this possible. We need more trade agreements starting with the TransPacific Partnership, a pact that would drive the sales of goods and services to customers around the Pacific Rim. We would all also profit from upgrading our infrastructure, which lets us move food by road, rail and river. I won’t have another 40 chances to keep improving, but I do plan to farm for a bit longer. With better trade and technology, I intend to keep on getting things right—and to have my best crop ever a few more times. Bill Horan grows corn, soybeans and other grains with his brother on a family farm based in north central Iowa. He volunteers as a board member and serves as chairman for Truth About Trade & Technology (truthabouttrade.org).
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