Ag Matters
Summer 2020
Moooving Milk
From farm to table
Plus Pork producer taking things day by day . 8 Ethanol demand rebounds . . . . . . . . . . . 12 Bridging the digital divide . . . . . . . . . . . . 14
A publication of est. 1851
Shaw Media/June 2020
| AG MATTERS
2
LIVESTOCK FARMING | DAIRY
From cow to shelf Family begins on-farm milk processing system By Tom C. Doran
AGRINEWS PUBLICATIONS
DELAVAN, Ill. — The Hoerbert family experienced the ups and downs of the commercial dairy business for over a dozen years and decided to make a change. That change culminated in the sale of their first carton of milk stamped with their own label on May 31. Little Brown Cow Dairy’s pasteur-
ized non-homogenized Jersey cow milk is now available at grocery stores and is also sold at the farm and at farmers markets. Raw milk is available at the farm, as well. Representatives from Green Top Grocery, a cooperatively owned grocery store in Bloomington that sells locally grown food, toured the farm on AGRINEWS PHOTOS/TOM C. DORAN June 1. The store will carry the milk. Terry (left) and Kortney Hoerbert describe how their dairy farm transitioned from providBob Hoerbert said the family has ing milk to a commercial dairy to processing and bottling their own product. See COW, Page 3
LOCAL EXPERTISE GLOBAL REACH WE ARE A FULL-TIME REAL ESTATE BROKERAGE THAT DEALS PRIMARILY IN LAND & RURAL PROPERTIES We are an elite group of real estate professionals with backgrounds in wildlife biology, farming, farm management, outfitting, education, photography, and land management.
DON WAGNER 309.335.2894 NATHAN CUMPTON 815.878.6780 VISIT LANDGUYS.COM 4331 Conestoga Dr. Springfield, IL 62711 LANDGUYS, LLC is licensed in IL, IA, IN, WI & TN | 217.899.1240
COW
been in the dairy business for about 15 years and currently milk 20 cows, producing about 84 gallons of milk per day. They’ve had as many as 60 head at one time. The family had an agreement with a commercial dairy company for the milk. The Hoerberts were looking for a change. “Dairy prices have been so low for so long, it was just getting really tough. A couple of years ago we actually thought about quitting completely,� Bob Hoerbert said. “Then our daughter, Kortney, talked to someone at a market up north who was interested in our milk and we also had had interest in our raw milk from a few people. That got us thinking more and more about bottling our own milk.� ON-FARM FACILITY With the local and regional interest in the milk, the Hoerberts started the process of producing, processing and bottling their own product on-farm.
See COW, Page 4
OUR MEMBER-OWNERS WILL RECEIVE $177 MILLION IN PATRONAGE THIS YEAR. IT PAYS TO BE A MEMBER-OWNER. As a Farm Credit cooperative, our member-owners share in the By paying back a portion of our earnings to our member-owners, they can reinvest in their farms and businesses, which directly impacts our local and state economy. Keeping rural America strong is at the heart of everything we do. See for yourself how being a member-owner pays.
Adam King (815) 719-8010 | Adam.King@compeer.com
Myron Rumbold (815) 719-8016 | Myron.Rumbold@compeer.com
Nate Edlefson, (815) 719-8021 | Nathan.Edlefson@compeer.com
Dan Legner (815) 719-8011 | Dan.Legner@compeer.com
In 2020, our member-owners will receive $177 million in patronage. COMPEER.COM/PATRONAGE Compeer Financial, ACA is an Equal Credit Opportunity Lender and Equal Opportunity Provider. Patronage allocations, redemptions and payments remains at the discretion of the Board of Directors based on a combination of factors including the risk in our portfolio, earnings, and our current capital position. Š2020 All rights reserved. SM-PR1788308
(844) 426-6733 | #CHAMPIONRURAL
3
AG MATTERS |Shaw Media/June 2020
FROM PAGE TWO
Their last shipment for the commercial dairy was last September and Bob soon started construction of the processing building. “Once that move was made we immediately started looking for the size of equipment that we wanted and getting all the questions that we had answered,� said Bob’s wife, Terry. “All of the equipment is from MicroDairy Designs. We just needed to find somebody who would give us a smaller quantity processing system in a good price range. So, we opted for a 45-gallon vat pasteurizer instead of the fast high-temperature short-time. “The milk is heated to 146 or 147 degrees for about 30 to 32 minutes and then start cooling it down. We then bottle it in our half-gallon and gallon containers.� A chart recorder and chiller are interconnected with the system. The MicroDairy Design chiller provides a reservoir of ice water to rapidly cool milk in the vat after processing or after milking. The ice water is pumped out of the chiller and circulated through the water jacket of the pasteurizer and then returned to the chiller. The whole process takes about Terry Hoerbert of Little Brown Cow Dairy hands a bottle of raw milk to Nicholas Walters, three hours from start to finish. Green Top Grocery general manager.
Shaw Media/June 2020
| AG MATTERS
4 COW
FROM PAGE THREE
“We’re pasteurized, not homogenized so you will still have to shake it to mix the cream into it. Homogenized means that the fat globules are mixed in and don’t separate,� Terry said. On the marketing end, they are selling whole milk at area farmers markets and expanding into grocery stores. “We can’t sell raw milk off the farm. We can only take our pasteurized to the farmers markets. So, if they’re interested in the raw, they have to come to the farm to get that,� Terry said. “We have some families that co-op. They’ll come and get seven or eight gallons and those families will take their turn coming to get it. We’re blessed with that.� The family focuses on producing quality milk in an environmentally friendly way. The Jersey cows are given a daily non-GMO ration of feed. They also have 24/7 access to pasture during the grazing season and all of their forage feeds are raised on the 100 acre farm. The Hoerberts hope that their locally-produced milk is a good selling point.
AGRINEWS PHOTOS/TOM C. DORAN
Representatives from Green Top Grocery of Bloomington, Illinois, visited Little Brown Cow Dairy June 1. The store will begin carrying the locally-produced milk. Nicholas Walters (right), Green Top Grocery general manager, is pictured with Kortney, Bob and Terry Hoerbert of the dairy farm near Delavan. “It is in our hands, you know where it’s coming from. Everything here is transparent and you can come and see where the cows are. Hopefully within our conversation you know
that we care about our cows and that they are top priority,� Terry said. “We believe in this product, therefore we want it in every household just because milk is good for everybody.�
Tom C. Doran can be reached at 815780-7894 or tdoran@agrinews-pubs. com. Follow him on Twitter at: @ AgNews_Doran.
FOR AGRIBUSINESS At First State Bank, we take pride in serving farmers. Whether your needs are business or personal, we’ll share with you the best ways to bank, borrow and manage your money. Advantages for Farmers
Craig Ayers Senior Vice President, Ag Mendota • NMLS#477897
Brad Piller Loan OfďŹ cer Mendota • NMLS#477895
Jeff Townsend Vice President Ag Lending Princeton
MEMBER FDIC
Tim Kunkel Community President Princeton
Alan Brizgis Community President McNabb • NMLS#477887
SPRINGFIELD
opportunities to celebrate our agricultural communities and the residents who make Illinois so exceptional. But it’s because the fairs are such a treasure to so many thousands of people that my administration, like those of our neighboring Midwestern states, must make the difficult decision to cancel the 2020 state fairs in light of the risk posed by COVID-19,” said Pritzker in his statement. “We are obviously disappointed that we will not be able to hold the 2020 Illinois State Fair. Our staff has been working hard to top what we did last year, and we feel like we were on track to do so. With that being said, we also understand that this is an unprecedented event,” said Kevin Gordon, manager of the Illinois State Fair. The two Illinois state fairs join a list of state fair cancellations, including the Iowa, Indiana and Wisconsin state
fairs. The Illinois Department of Agriculture announced it will conduct a junior livestock expo in Springfield in September for exhibitors ages 8 to 21 to show their animals. Details on that expo will be released later. The 4-H general project show will take place online, and IDOA will distribute premiums and ribbons. “These kids work all year to prepare for their livestock and projects, so we are determined to still provide them an event that showcases their hard work and perseverance through a very difficult year,” said Jerry Costello II, acting director of the Illinois Department of Agriculture. Jeannine Otto can be reached at 815-223-2558, ext. 211, or jotto@ agrinews-pubs.com. Follow her on Twitter at: @AgNews_Otto.
POINTER CHIROPRACTIC
By Jeannine Otto
year to get their fix. Gov. J.B. Pritzker issued an executive order on June 12 canceling both of SPRINGFIELD, Ill. — Fans of the the Illinois state fairs for 2020. Illinois State Fair and the DuQuoin “The Illinois and DuQuoin State State Fair will have to wait until next Fairs have been some of my favorite AGRINEWS PUBLICATIONS
FARMERS – LANDOWNERS If it’s on your farm …We Insure It!
REAL ESTATE • INSURANCE • AUCTION SERVICES FARMS • HOMES • CROP INSURANCE
Johnson Agency Robert K. Johnson • Kyle Johnson • Myrene Carper
135 S. Main Street • Sheffield, IL 61361
Dr. Pointer can fix his tractors when they break down on his farm, AND Dr. Pointer can fix your back and neck pain when you are broke down.
CALL POINTER CHIROPRACTIC FOR FAST PAIN RELIEF FOR ALL OF YOUR ACHES AND PAINS. 309/852-6514 to schedule an appointment 627 E. 2nd Street Kewanee, IL 61443
j.agency@mchsi.com • 815-454-2840 or 800-454-2716 SM-PR1787862
SM-PR1789843
WALK-INS WELCOME!
AG MATTERS |Shaw Media/June 2020
Illinois state fairs canceled
5
Shaw Media/June 2020
| AG MATTERS
6
ROCK ISLAND
Illinois Waterway closures to begin Lock and dam repairs along Illinois River By Tom C. Doran
AGRINEWS PUBLICATIONS
ROCK ISLAND, Ill. — Plans are on track this summer for lock and dam closures for repairs along the Illinois River. During these closures that begin in early July, no vessels will be able to pass through the affected locks. “The main point is to upgrade and improve some of the infrastructure on the Illinois Waterway. All of these locks are approaching 80 to 90 years old, so there’s a lot of maintenance that needs to be done,” said Matthew Coffelt, Army Corps of Engineers Rock Island District program manager. Unlike the Upper Mississippi River lock and dams that can be closed during the off-season for maintenance, the Illinois River remains open yearround unless there are some other unique circumstances such as flooding or other problems that impact the waterway. “So, because of that, we had to come up with a way to dewater some of the sites and try to minimize the impact to not only the navigation industry but also to all of the stakeholders that utilize the Illinois Waterway,” Coffelt explained. 2020 SCHEDULE Here is the schedule for 2020 closures: n LaGrange Lock and Dam — Closed July 1-Sept. 20. The work includes significant repairs to the crumbling concrete and steel structures within the lock chamber, and replacement of lock machinery. n Peoria Lock and Dam — Closed July 6-Sept. 30. The lock chamber will be dewatered for maintenance and inspection. n Starved Rock Lock and Dam — Closed July 1-Oct. 29. The lock chamber will be dewatered for lower and upper miter gate replacement. n Marseilles Lock and Dam — Closed July 6-Oct. 29. The lock chamber will be dewatered for upper miter gate replacement.
n Dresden Island Lock and Dam — Partially closed July 6-Oct. 3 and Oct. 25-28, full closure Oct. 4-24. Upper bulkhead recess installation is planned. Further work on the Brandon Road Lock and Dam and Dresden Island is planned for 2023. “This originally started with a few projects that were upcoming, one of them being the major rehab at the LaGrange and there other sites that need to have major repairs,” Coffelt noted. “In coordinating those efforts with industry, we quickly realized that the preference would be to try and consolidate as much of that work into one year rather than having a lock closed to dewater each over several years in a row, which is what it would have amounted to. “So, the goal is to consolidate these efforts into the same year and that way freeing up years in between where we don’t have any sort of significant planned closures.” Tom Heinold, Army Corps Rock Island District chief of operations, said an exception to the closures would occur at the LaGrange and Peoria locks if water levels become high enough that the wicket portions of the dams could be lowered for an open-pass. This would allow vessels to pass around the dam without using the lock. “There is some risk associated with that. I don’t want to downplay that too much because there is a possibility that if the river were to drop we’d have to put the wickets up and we might pin or trap a tow within the Peoria and LaGrange pools. However, we’ll do all we can do to accommodate traffic if the weather conditions are appropriate,” Heinold said. “The dams on the Illinois Waterway will continue to operate as they always have. We will maintain pools so that if there is this inter-pool traffic — recreational or commercial — they will be able to transit within the pools
Farm Management Consulting Real Estate Brokerage Farmland Auctions
Call me on how I can assist with your agricultural needs
Timothy A. Harris, AFM Managing Broker, IL Lic. Auctioneer #441.001976, Princeton, IL
815-875-7418 timothy.a.harris@pgim.com
www.capitalag.com LICENSED REAL ESTATE BROKERS
See WATERWAY, Page 7 SM-PR1788309
WATERWAY
7
AG MATTERS |Shaw Media/June 2020
FROM PAGE SIX
without restrictions. But if you want to get around a dam in a recreational craft they’ll have to portage and large tow boats will be pinned within those pools between the dams if the locks are closed.” If any changes to the scheduled are needed due to the COVID-19 pandemic, they will be posted on the Rock Island District website, www.mvr. usace.army.mil. Tom C. Doran can be reached at 815780-7894 or tdoran@agrinews-pubs. com. Follow him on Twitter at: @ AgNews_Doran. The Starved Rock Lock and Dam will be closed July 1-Oct. 29 to replace the lower and upper miter gates. Four locks and dams along the Illinois River will be closed beginning in early July to upgrade the antiquated infrastructure. The pools between the dams will remain open for recreational and commercial traffic. ARMY CORPS OF ENGINEERS PHOTO
We carry some of the best brand names that you want
LOOK TO US FOR ALL YOUR AGRICULTURAL LENDING NEEDS Visit us for all your agriculture and lawn and garden power equipment needs
DILLER-ROD, INC.
Member FDIC
701 East Peru St. • Princeton, IL • 815-875-3389
110 N. Main Ave. • Ladd, IL 126 E. High St. • Hennepin, IL 815-894-2386 815-925-7373
Service. Knowledge. Selection. Financing. Delivery
www.northcentralbank.com
SM-PR1785869
Deb Schultz
LIVESTOCK FARMING | PORK
Pork producer taking things day by day By Jeannine Otto
AGRINEWS PUBLICATIONS
EUREKA, Ill. — Chad Leman and his employees at Leman Farms Inc. used to know exactly how this went. They knew when loads of young pigs would be headed to finishing barns. They knew when the market-ready pigs in those barns would go to market, making way for cleaning and disinfecting the barns to receive the young pigs. They knew how much feed to deliver and when. “Fast forward to today and it’s day to day,” Leman said. That schedule they had? It’s temporarily on hold. “It’s hard to look even a week ahead because packers still are not able to give much of a lead time at all for us as to scheduling loads,” Leman said. Leman, a third-generation pork pro-
ducer at Leman Farms, discussed his farm and the current challenges posed by packing plant slowdowns and closures due to COVID-19. Leman came back to his family’s grain and hog farm after high school, almost 30 years ago. He said in those almost three decades of being in the hog business, the experience of COVID-19 is new territory. “I’ve never seen anything quite like anything we’ve seen over the last two and a half months,” he said. Leman said that while he and other producers had some warning that packers could be impacted by worker illnesses due to COVID-19, even knowing, there were few options. “As hog producers, that was our greatest fear as this thing began — what are we going to do if we can’t find a place to go with pigs?” he said. As packers started to shut down
and slow down, Leman and others started to make adjustments, including some that were unthinkable just a few months before the pandemic. “We knew that — given the fact we were going to be housing pigs much longer than usual — that we were going to have to break rules that we’ve written for our farms long before. We’re going to empty barns of market pigs. We’re going to wash and disinfect the barns before bringing in baby pigs. There was just not room to do that, so we accommodated a whole gamut of sizes,” Leman said. He met with his herd veterinarian and nutritionists to change diets to drastically slow growth in pigs. Barn ventilation and temperature also became a concern as he and his workers tried to figure out how to adjust ventilation and temperatures to accommodate pigs ranging in size from 15 pounds to over
New box design allows you to apply 2 fertilizers in one pass. Blend on the go with independent control of conveyors. Broadcast fertilizer from 60’ to 84’. The MultApplier dual hopper insert is removable allowing for single product application.
WE DELIVER: • FUELS • PROPANE • MOTOR OILS
McHenry Machine Company, Inc. 1309 IL Highway 26, Princeton, IL 61356
See Pork, Page 9
for Over 57 Years!
MULTAPPLIER
815-875-1953
200. In addition, Leman had others to consider. “I think all of us have employees who were just as uncertain as we were and anxious as we were about how are we going to get through this? How can we remain optimistic as owners? How can we reassure employees that we’re going to take care of them?” Leman said. As an employer, he also needed to consider their concerns about COVID19. “We also needed to alleviate the health concerns that they had about coming in to work, so we were trying to balance that, as well,” he said. Leman credited his workers and the contract producers he works with for working to make sure pigs were taken
Serving Today’s Farmers
NEW LEADER
SM-PR1785835
Shaw Media/June 2020
| AG MATTERS
8
Manlius Oil Co. Inc.
Manlius, IL, Hwy. 40 • (815) 445-3122
PORK
9
Chad Leman is a third-generation pork producer from Eureka, Illinois. Leman said in his close to 30 years on the farm, he has never seen a situation for the U.S. pork industry like the COVID-19 pandemic. Leman said he and other producers continue to deal with the uncertainty posed by the shutdown and partial reopening of processing facilities. Some producers have had only 24 hours to get loads of pigs to a packing plant. passed in May, does not include the Assistance Package has. $250,000 per person or entity payment limitations that the Coronavirus Food Jeannine Otto can be reached at
815-223-2558, ext. 211, or jotto@ agrinews-pubs.com. Follow her on Twitter at: @AgNews_Otto.
Schoff
Farm Service, Inc. Walnut, Illinois
Serving your modern day transportation needs, with old fashioned service!
SM-PR1785859
care of and for finding ways to adjust to the new situation. “They stepped up to the plate. They responded just valiantly,” he said. Leman said producers try to be optimistic, but at the same time have to consider the reality. “I think we’re hopeful and we’re optimistic that we get through these times. We’re also realists and we understand the size and the scope of this problem. It’s humbling to know we are going to need further help to continue to be able to supply pork to consumers,” he said. Leman and other pork producers spoke during a media call, hosted by the National Pork Producers Council, to urge the U.S. Senate to pass the Heroes Act. The Heroes Act is a $3 trillion economic stimulus package that would provide a second round of direct payments for farmers. Livestock producers would receive direct payments for livestock which have been depopulated. The bill, which the U.S. House
SM-PR1785879
AG MATTERS |Shaw Media/June 2020
FROM PAGE EIGHT
Shaw Media/June 2020
| AG MATTERS
10
SCIENCE
Monarch Project
Agriculture coalition submits data from statewide conservation effort BLOOMINGTON, Ill. — One year after the Illinois Monarch Project Agriculture Action Plan was unveiled on Earth Day, Illinois Farm Bureau continues to highlight voluntary conservation efforts geared toward pollinators. IFB recently submitted data to the IMP for the U.S. Fish and Wildlife Service’s Monarch Conservation Database. The data submission is a collection of metrics showcasing Illinois stakeholder efforts to help protect pollinators over the past six years. “IFB has been instrumental in setting up opportunities to educate, raise awareness and make additional research investments in monarch butterfly conservation,” said IFB President
Richard Guebert Jr. “These voluntary efforts have and will continue to inform our farmer members, landowners
a n d the public about the importance of this species and its habitat.”
Right Product. Right Acre. Right People.
The database aims to collect information on monarch habitat throughout the United States based on conservation
efforts, which are defined as on-theground actions designed to improve
the population status of monarchs. That information, along with population surveys, will be reviewed by federal environmental agencies ahead of the USFWS Endangered Species Act listing decision regarding the monarch this winter. The most recent overwintering population of monarch butterflies in Mexico decreased 53% from the 2018-2019 population to the 2019-2020 population. The IMP was established in 2016 with a mission to help monarch butterflies thrive throughout Illinois by collaborating on conservation activities and encouraging engagement by public and private landowners across diverse urban and rural landscapes. Members of the IMP work in four
Farming is more than your business,
it’s your legacy.
MJ Seed Agency Independent Sales Rep Pioneer Brand Products Michael Michlig (815) 878-4430 Justin Peterson (815) 878-3496 8927 1925 NORTH AVE. SHEFFIELD, IL Pioneer brand products, service, Pioneer Premium Seed Treatment and PROBulk® System
We’ll help keep your farming tradition growing. Operating & Farmland Loans Equipment & Facility Financing Farmland Sales & Appraisals Farm & Grain Management Farmland Investment & Purchases hbtbank.com 888-897-2276
electronic reach network of 2,421,150 contacts, resulting in 9,220,271 views, visits, impressions, clicks or engagements. Additionally, 138,832 in-person contacts through presentations or classroom curriculum were extended to the public throughout Illinois. n The IFB Board of Directors has allocated over $110,000 toward research in the field of pollinator and monarch butterfly habitat in agriculture landscapes. IFB has also connected researchers to farmers for in-field research and outreach and extension. n Over 850,000 acres have been enrolled in the Natural Resources Conservation Service’s Conservation Reserve Program. n Over 100,000 CP-42 acres have been enrolled in the U.S. Department of Agriculture Pollinator Habitat Program. n 741 additional acres of pollinator habitat have been created beyond CRP and CP-42 acres. Stakeholders who submitted efforts on behalf of the IMP Agriculture Sector include: Association of Illinois Soil and Water Conservation, Growmark/FS, Illinois Agriculture in the Classroom, Illinois Corn Growers Association, IFB, Illinois Pork Pro-
11
A group of 16 Illinois organizations and agencies has teamed up to help the monarch butterfly. ducers Association, Ill-inois Specialty Growers Association, Trees Forever, University of Illinois Ex-tension and University of Illinois Extension Pesticide Safety Education Program.
Get more info
To learn more about the Illinois Monarch Project in the agriculture sector, visit www.ilfb.org/pollinators.
THE ONE NAME IN CROP PROTECTION INPUTS
Your Locally Owned Petroleum Retailer WE OFFER: Premium Diesel • Gasoline • Aviation Fuel Propane • Chevron Lubricants Tanks, Pumps, Service In Cambridge: Mark Seabloom 800-808-1812 In Manlius: Scott Smith 800-624-5593 Mike Dykstra Steven Michlig
Call us to discuss what we can do for you!
Michlig Energy – Delivering the Spirit of Service to Our Communities SM-PR1788321
Nutrien Ag Solutions We are dedicated to helping our customers achieve maximum success. When you meet and work with a member of the Nutrien Ag Solutions team, we are confident you will see our strengths firsthand and “Profit from our experience.”
Manlius
815-445-6951 Walnut
815-379-9295
AG MATTERS |Shaw Media/June 2020
sector working groups including agriculture, urban, natural lands and rights of way. These groups are overseen by a technical steering committee made up of members from the groups. Farm Bureau has been a representative of the technical steering committee and the lead of the agriculture working group since the beginning of the IMP. In May, the IMP Agriculture Sector submitted its collective efforts to the IMP for upload into the Monarch Conservation Database. The uploaded information included a wide variety of efforts toward education and conservation of the monarch butterfly in Illinois. These efforts were submitted to the IMP from multiple stakeholders in the agriculture sector and highlights the impressive amount of effort that agriculture has put into monarch conservation. Over 200 efforts were submitted to the USFWS Monarch Conservation Database, with efforts dating back to 2014. A snapshot of the data includes: n Total pollinator-related outreach efforts — many of which focused on the monarch and milkweed — in the IMP Agriculture Sector: 271 articles, resource guides or posts on pollinators, monarchs and habitat, which were shared over a print distribution or
Shaw Media/June 2020
| AG MATTERS
12
AGRICULTURAL ENERGY
Ethanol demand rebounds By Tom C. Doran
AGRINEWS PUBLICATIONS
WASHINGTON — The U.S. Energy Information Administration forecasts that per-day domestic ethanol production this year will be about 15% lower than in 2019 and the fuel’s producers continue to adapt in the ever-changing environment. EIA projected in the June 8 shortterm energy outlook that ethanol production will average 870,000 barrels per day in 2020 and rebound to 970,000 barrels per day in 2021. EIA expects fuel ethanol margins to gradually increase, but lower U.S. motor gasoline demand will keep fuel ethanol production levels lower than 2019 levels in 2020. U.S. fuel ethanol production fell dramatically during late March and Lincolnland Agri-Energy, Palestine, Illinois, processes 21 million bushels of locally grow corn into approximately 60 million gallons of in April 2020, driven by significant biofuel, 160,000 tons of distillers’ grains and 9,000 tons of distillers’ oil. See ETHANOL, Page 13
Peterson Bros.
We have served our communities for over 50 years
James Peterson SEED REPRESENTATIVE
400 South West St
Wyanet, IL 61379 CELL: 815-878-1269 jamespete64@gmail.com
WHAT WE OFFER: • Grain Merchandising • Trucking • Storage
Manlius Bradford Cambridge 815-445-2311 309-897-7491 309-937-2435 www.michliggrain.com
ETHANOL reductions in motor gasoline demand as a result of mitigation efforts for the coronavirus. Fuel ethanol production fell to 537,000 barrels per day in the week ending April 24, which was the lowest level on record since June 2010, when the EIA began collecting weekly fuel ethanol production data. Because almost all finished motor gasoline sold in the United States is blended with 10% ethanol, the drop in gasoline demand has driven similar decreases in fuel ethanol demand and, correspondingly, fuel ethanol production. Before country-wide mitigation efforts were implemented in response to COVID-19, fuel ethanol inventories were already trending at some of their highest seasonal levels in early 2020 because of relatively flat U.S. gasoline demand and limited domestic fuel ethanol demand growth beyond E10. U.S. fuel ethanol inventories reached an all-time record level of 27.7 million barrels during the week ending April 17, which was 22% higher than at the same time last year. As gasoline demand has begun to gradually recover, fuel ethanol inventory levels decreased to 22.5 million barrels for the week ending May 29, similar to their value in late May 2019. Sharp reductions in motor gasoline blending demand reduced already weak fuel ethanol operating margins, leading many plants to suspend operations entirely or significantly reduce output. Press reports indicate that nearly 30% of the nation’s fuel ethanol plants have been idled since early March, while another 35% have reduced production.
more and coming back on. Maybe they moved through some of those inventories that they had after that initial fall. I think every situation is a little bit different, depending on the geography you’re in and the market you’re serving in that respect.”
ful. The ethanol molecule has a very important place in the marketplace. I’m glad the plants are able to produce that sanitizer.”
The Health and Economic Recovery Omnibus Emergency Solutions Act passed in the U.S. House last month and How has Lincolnland Agri-Energy been awaiting action by the Senate authorizes What do you see in the ethanol industry doing through the pandemic? the U.S. Department of Agriculture to going forward? “We at Lincolnland had been provide 45 cents per gallon of ethanol “I think it’s going to be really inoperating at a reduced rate since produced from Jan. 1 through May 1, teresting to watch how the ethanol March when you could start to see 2020. Producers forced offline for one or industry responds throughout this this happening. Then looking at our more calendar months during this time recovery. Will we come right back would qualify for the same credit, based production planning and nominations on and blow right through those old on half the volume produced during the from our fuel customers for April production numbers and increase you could just see how the demand corresponding month or months in 2019. stocks again or will we take a more destruction was going to be very, very measured approach and a more disci- What are your thoughts on the HEROES Act? eminent. So, we slowed. That’s how plined approach? I’m hoping for the we cope with things. We slow down. “I guess it was good to see somelatter. We try to match our production to thing for ethanol in one of these bills. “Growth for the ethanol industry demand and cut costs as much as we is not impossible, but I would say it Ethanol has largely been left out of possibly can and see how that plays the free money parade that goes on in will be challenging if we don’t have out. And, of course, literally things Washington. It was good to see that significant exports pick-ups and we just changed almost weekly through we got recognized. don’t see a way to get ethanol into the last part of March through April. “It was good to see some money other countries and start to put it in “Now, we’re starting to feel a little their gasoline supplies because it does out there for infrastructure for high more stable as we start to see demand seem like the writing might be on the level blends. I think that’s been a come back and customers starting to slow, long road, but I do think we’ll wall for electric cars over time. talk about what their needs are going “It’s going to take time. It goes back see growth there. So, we’ve got to to be for June. keep going on that path and try to to production discipline and how we offset some of these export losses that “Lincolnland has coped fairly well. manage these plants going forward, We were able to slow down. Yes, it’s we’ve seen in the past and other dewhat options can we come up with always an initial shock to the econmand losses. to make them profitable with other omy of the plant when your prices “You can go back into 2018 and products and product diversification, are in freefall, especially if you have throughout most of 2019 and the and continue to use the U.S. corn inventories on the books, but then industry was already struggling and crop.” there’s always another side to that just continued to keep production when the recovery comes. So, try to high as we saw demand start to falter. There have been reports that some look further than just what the next Obviously you can’t do that forever or ethanol companies have pivoted to profew weeks are going to be and try to ducing hand sanitizers. Has that made a you’ll see a significant problem with look at things at least quarterly and your margin. There’s a fair amount of difference in the industry? usually when you look at things quar“I’ve seen it described as a band-aid time spent below the breakeven line when you’re in the ethanol industry terly there’s a little bit of light at the or just something that can keep you and that’s why I try to make the point end of the tunnel.” going. It might even be more than about the disciplined stance on prothat if we could ramp up. I know May saw a low watermark for producduction, and really take market cues.” many plants are waiting on a more tion, is that because inventories on hand clarification from the Food and Drug were being used during that time for Tom C. Doran can be reached at 815Administration on what we’re alboth gasoline stocks and ethanol stocks lowed to produce and what we’re not 780-7894 or tdoran@agrinews-pubs. or for some other reason? allowed to produce. It’s a good thing. com. Follow him on Twitter at: @ “I just see customers starting to It shows that our product is very use- AgNews_Doran. increase their orders just a little bit
Princeton Redi-Crete, Inc. FOR ALL YOUR CONCRETE NEEDS • Structures • General Excavation • Land Clearing • Underground Boring • GPS Topography Mapping
Call Us At: 815-910-5479 29408 3450 East Street LaMoille, IL
SM-PR1786345
SM-PR1787941
• Farm Drainage • Waterways
Producers of Quality Concrete Cain Family, Owners 815-875-3359 533 E. Railroad Ave. • Princeton, IL Proudly Supporting Our Area Farmers
13
AG MATTERS |Shaw Media/June 2020
FROM PAGE TWELVE
During a University of Illinois farmdoc-hosted webinar May 19, Eric Mosbey, general manager of Lincolnland Agri-Energy in Palestine, Illinois, discussed how the lower ethanol demand has impacted the locally-owned company.
TECHNOLOGY
Bridging the digital divide
Farmers, students, rural small businesses need broadband By Erica Quinlan
AGRINEWS PUBLICATIONS
WASHINGTON — Now more than ever, rural America needs access to the internet. A panel of farmers, businessmen, educators and other experts spoke up about the topic during a webinar June 9. “Farmers having the availability to utilize technology and use it to its greatest potential is going to have a significant impact moving forward,” said RJ Karney, director of congressional relations for the American Farm Bureau Federation. “We’re talking about things like soil health, plant health, being able to monitor your livestock and cattle to help with the animal. There’s great potential here when discussing broadband and precision agriculture.” Karney also noted Congress took commendable action to fix faulty broadband mapping data earlier this year and now must provide the Federal Communications Commission the funding needed to implement those changes. Inaccurate maps have been one of the greatest hurdles in getting broadband funding to areas that need it most, Karney said. The digital divide affects more than just farmers. Education and health care are taking a hit, as well. “It just hurts me to see that education for many students in this country In the town of Council Grove, Kansas, Tri-County Telephone Association brings broadband service to businesses and homes.
USDA PHOTOS
“Protecting Your Investment In Farmland” SM
Douglas D. Ray, AFM
Accredited Farm Manager/Managing Real Estate Broker
815-872-FARM (3276) SM-PR1787945
Shaw Media/June 2020
| AG MATTERS
14
P.O. Box 39 • 226 Prairie Ln. W. • Princeton, IL 61356 www.rayfarm1.com • Email: rayfarm1@comcast.net
• NEW HOMES • GARAGES • ROOM ADDITIONS • ROOFING • SIDING • POLE BUILDINGS • REMODELING Post Office Box 114 Walnut, IL. 61376 Email: haroldrollo@yahoo.com Website: www.rolloconstruction.com
FREE ESTIMATES Home: 815-379-9317 Ans. Machine: 815-379-2350 Cell Phone: 815-303-9321
15
Tri-County Telephone Association brings broadband service to businesses and homes throughout the Flint Hills region of Kansas. and also when it comes to broadband policy in general, making sure we have a regulatory framework in place that’s designed for the 21st century,� Crenshaw said. Learn more at www.connectameri-
cansnow.com. Erica Quinlan can be reached at 800-426-9438, ext. 193, or equinlan@ agrinews-pubs.com. Follow her on Twitter at: @AgNews_Quinlan.
20014 Case IH 7230 • 1,755/1,334 Hours, Pro 700, Guidance Ready, Power Bin Extensions...$156,500
2014 Case IH 5130 • 1,031/798 Hours, Pro 700, Power Folding Bin Extensions, Yield & Moisture Sensors...$155,500
2011 Case IH 8120 • 1,977/1,397 Hours, Pro 700, Guidance Ready, 2WD, Header Height Control...$122,500
2009 Case IH 7120 • 3,387/2,582 Hours, Pro 600, Bin Extensions, Header Height Control...$63,800
2014 CIH Maxxum 125 • 1,486 Hours, 3 Remotes, Loader, PTO, Suspended $88,560
2017 Case IH Ecolo-Tiger 875 • 22 ft, Double Fold, Scrapers...$92,000
2012 Case IH Ecolo-Tiger 870 • Single Fold, 9 Shanks...$51,000
2006 Case IH 2208 • 30� Row Spacing, Field Tracker, Rigid Frame, Header Height Control...$13,000
407 S. East St. Annawan, IL 61234 (309) 935-6768 SM-PR1783506
1350 Western Ave Henry, IL 61537 (309) 364-2336
AG MATTERS |Shaw Media/June 2020
ended in mid-March because of a lack 20% of rural small businesses actually of broadband,� said Betsy Huber, pres- generate the vast majority of their sellident of the National Grange of the ing of products and services online. Order of Patrons of Husbandry. “They “If we actually have full adoption of weren’t able to complete the school digital tools for rural small businesses, year with learning. we’d actually see an additional $74 bil“Rural areas don’t have the health- lion in sales per year, an addition of care providers that urban areas do. $41 billion in GDP and we’d actually And when you’re afraid to go to the add at least 300,000 jobs to the econdoctor or don’t omy.� have that option, Crenshaw emthen it’s even phasized the “Farmers having the worse in this time. importance of “The doctors congressional acavailability to utilize can do so much tion to deploy tarby internet, by geted, timely retechnology and use it to its telehealth.� sources to tackle Huber encourspecific needs like greatest potential is going aged action to the homework expand access to to have a significant impact gap. He also pointed broadband now, not in five years. moving forward,� said RJ to the imporJ o r d a n tance of updating Crenshaw, execAmerica’s regulaKarney utive director of tory landscape to the U.S. Chamber protect consumof Commerce ers and unleash Technology Engagement Center, ex- private-sector innovation to help close plained that lack of broadband is af- the digital divide. “There should be an effort to put fecting small businesses, as well. “Rural small businesses are trying to funds in places where there are uninnovate. The problem is it’s a connec- served communities, to make sure tivity issue,� he said. “We’ve only seen we’re efficiently spending that money
Shaw Media/June 2020
| AG MATTERS
16
Protecting farmers and their families since 1925 From crop insurance to help protect your livelihood, to life insurance to help make sure your family farm stays in the family, COUNTRY Financial has got you covered. Talk to your local COUNTRY Financial representative today to find out more!
Ron Behrends Tiskilwa (815) 646-4121
Tyler Hansen Walnut (815) 379-9297
Crane Schafer Spring Valley (815) 664-4145
Mike Morris Princeton (815) 872-3333
Ben Schmidt Princeton (815) 872-0914
Jim Scruggs Princeton (815) 872-3333
Dan Kniss Agency Manager (815) 221-3075
Policies issued by COUNTRY Mutual Insurance CompanyÂŽ, COUNTRY Life Insurance CompanyÂŽ and COUNTRY Investors Life Assurance CompanyÂŽ, Boomington, IL. SM-PR1788647
