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Periodicals: Time Valued Monday, November 16, 2009 Two sections Volume 37, No. 46 FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau ® on the web: www.ilfb.org CONGRESS LIKELY WILL be embroiled in the health care debate “until the snow starts fly- ing,” and that could halt climate debate until the 2010 session. .......2 A SOUTHERN ILLINOIS soybean grower suggests an infu- sion of high-profile capital may be just what is needed for the rail industry . ....................................... 13 WAL-MART SHOPPERS are finding more Illinois-grown fruits and vegetables on store shelves and that is pumping more dollars into the Illinois ag economy . .................9 Delays, deviations may jeopardize EQIP contracts Farmers advised to consult NRCS BY KAY SHIPMAN FarmWeek Farmers who may not be able to fulfill their Environ- mental Quality Incentives Pro- gram (EQIP) contracts need to talk with their district conservation- ists or face the possible loss of those con- tracts and per- haps face penalties, according to the Natural Resources Conservation Service (NRCS) assistant state conservationist for programs. “Anytime you deviate from the schedule (of conservation practices to be installed), you should go to the local NRCS and find out what the impact will be,” NRCS’s Ivan Dozier told FarmWeek. “The way it’s been this year, the concern is there might be significant impacts,” Dozier said. Farmers especially need to farmer made a good-faith effort, Dozier said. Farmers who fail to com- plete work before a contract expires may have to repay some or all of the payments they received, which will be determined on a case-by-case basis, Dozier explained. “The expectation is for (EQIP) participants to do everything in their contracts according to schedule, and we’ll pay the amount specified in the contract,” Dozier said. Dozier advised farmers to take their time considering and planning the conserva- tion work stipulated before they sign an EQIP contract. “Planning is free and flexible, and (EQIP) signup is contin- uous. Get a good plan and think about it, then you won’t have to modify it,” he con- cluded. be vigilant if they are within the first 12 months of an EQIP contract or if their con- tract will expire before they can complete all the practices specified, Dozier warned. “The first 12 months are critical. You have to start something (toward installing a practice),” Dozier said. “If you don’t start (work), not necessarily finish, that’s a regulatory violation and could cause the contract to be termi- nated, unless you receive a waiver from the state conser- vationist,” he added. Dozier explained waivers would be granted in situations that are out of a farmer’s con- trol, such as weather-related delays. If a farmer doesn’t contact NRCS within the first 12 months, the state NRCS has no flexibility and cannot issue a waiver after that date, he emphasized. Another critical period is near the end of the contract. If a contract expires before all the specified practices are completed, the farmer would be in violation of the contract. (There are 2,831 active EQIP contracts in the state). In both situations, a farmer needs to contact the county district conservationist, Dozier said. A farmer may ask for a contract extension to be able to complete all the required work before the contract expires, he added. If a farmer has not started conservation work within the first 12 months, he may have to pay “liquidated damages,” which may be up to 10 percent of the face value of the con- tract. However, liquidated damages may be waived if the Ivan Dozier BY MARTIN ROSS FarmWeek Substantive estate tax reform is neces- sary in 2009 to head off the potential con- sequences of a simple one-year extension of current tax provisions, an American Farm Bureau Federation (AFBF) policy specialist warns. Even with key health care issues hang- ing over the post-Thanksgiving congres- sional calendar (see story on page 2), Illi- nois Farm Bureau National Legislative Director Adam Nielsen expects lawmakers to approve some sort of estate tax fix to avert scheduled elimination of the tax in 2010 and its reinstatement at pre-2002 rates the following year. Currently, a $3.5 million-per-person tax exemption is in force for farm heirs. While Farm Bureau’s ultimate goal is repeal of the estate tax, the organization supports a current proposal to phase in a $5 million individual/$10 million couple exemption and a top tax rate of 35 per- cent. After a 10-year phase-in period, the exemption would be indexed to inflation to track more closely with the economy. Nielsen noted both Republican and Democrat lawmakers are in favor of a “permanent” estate tax fix. The other major option being touted on Capitol Hill is straight one-year extension of the cur- rent exemption. “This is bad,” AFBF’s Pat Wolff told FarmWeek. “If they only do a year, you go from repeal to having a $3.5 million exemption — that’s a huge (fed- eral) revenue raiser. Then you go into the next year, and the exemption is $1 million. “To get back from $1 million to $3.5 million, you have to offset — you have to pay for it just to get back to where you were the year before. It’s bad, bad, bad. “Even worse, (Congress) could do something retroactive (to recover ‘lost’ revenues).” Mere estate tax extension deemed ‘bad, bad, bad’ WAITING FOR LOAD Rod Fluegel of Minier in Tazewell County waits for his uncle, Robert Dietrich, also of Minier, to arrive with another hopper full of soybeans. Fluegel reported 120 acres of soybeans had been harvested by early last week with an average moisture content of 12 percent and an average yield of 60 bushels per acre. They planned to begin corn harvest last week. Good weather allowed farmers to make se- rious headway on corn and bean harvest in the state. See story on page 7 for an update. (Photo by Ken Kashian)

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Page 1: FarmWeek edition November 16 2009

Per

iod

ical

s: T

ime

Val

ued

Monday, November 16, 2009 Two sections Volume 37, No. 46

FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau®on the web: www.ilfb.org

CONGRESS LIKELY WILLbe embroiled in the health caredebate “until the snow starts fly-ing,” and that could halt climatedebate until the 2010 session. .......2

A SOUTHERN ILLINOISsoybean grower suggests an infu-sion of high-profile capital may bejust what is needed for the railindustry. .......................................13

WAL-MART SHOPPERS arefinding more Illinois-grown fruitsand vegetables on store shelves andthat is pumping more dollars intothe Illinois ag economy. .................9

Delays, deviations may jeopardize EQIP contractsFarmers advisedto consult NRCSBY KAY SHIPMANFarmWeek

Farmers who may not beable to fulfill their Environ-mental Quality Incentives Pro-gram (EQIP) contracts need

to talk withtheir districtconservation-ists or face thepossible lossof those con-tracts and per-haps facepenalties,according tothe NaturalResources

Conservation Service (NRCS)assistant state conservationistfor programs.

“Anytime you deviate fromthe schedule (of conservationpractices to be installed), youshould go to the local NRCSand find out what the impactwill be,” NRCS’s Ivan Doziertold FarmWeek.

“The way it’s been this year,the concern is there might besignificant impacts,” Doziersaid.

Farmers especially need to

farmer made a good-faitheffort, Dozier said.

Farmers who fail to com-plete work before a contractexpires may have to repaysome or all of the paymentsthey received, which will bedetermined on a case-by-casebasis, Dozier explained.

“The expectation is for(EQIP) participants to doeverything in their contractsaccording to schedule, and

we’ll pay the amount specifiedin the contract,” Dozier said.

Dozier advised farmers totake their time consideringand planning the conserva-tion work stipulated beforethey sign an EQIP contract.“Planning is free and flexible,and (EQIP) signup is contin-uous. Get a good plan andthink about it, then you won’thave to modify it,” he con-cluded.

be vigilant if they are withinthe first 12 months of anEQIP contract or if their con-tract will expire before theycan complete all the practicesspecified, Dozier warned.

“The first 12 months arecritical. You have to startsomething (toward installing apractice),” Dozier said.

“If you don’t start (work),not necessarily finish, that’s aregulatory violation and couldcause the contract to be termi-nated, unless you receive awaiver from the state conser-vationist,” he added.

Dozier explained waiverswould be granted in situationsthat are out of a farmer’s con-trol, such as weather-relateddelays. If a farmer doesn’tcontact NRCS within the first12 months, the state NRCShas no flexibility and cannotissue a waiver after that date,he emphasized.

Another critical period isnear the end of the contract.If a contract expires before allthe specified practices arecompleted, the farmer wouldbe in violation of the contract.(There are 2,831 active EQIPcontracts in the state).

In both situations, a farmerneeds to contact the countydistrict conservationist, Doziersaid. A farmer may ask for acontract extension to be ableto complete all the requiredwork before the contractexpires, he added.

If a farmer has not startedconservation work within thefirst 12 months, he may haveto pay “liquidated damages,”

which may be up to 10 percentof the face value of the con-tract. However, liquidateddamages may be waived if the

Ivan Dozier

BY MARTIN ROSSFarmWeek

Substantive estate tax reform is neces-sary in 2009 to head off the potential con-sequences of a simple one-year extensionof current tax provisions, an AmericanFarm Bureau Federation (AFBF) policyspecialist warns.

Even with key health care issues hang-ing over the post-Thanksgiving congres-sional calendar (see story on page 2), Illi-nois Farm Bureau National LegislativeDirector Adam Nielsen expects lawmakersto approve some sort of estate tax fix toavert scheduled elimination of the tax in2010 and its reinstatement at pre-2002

rates the following year.Currently, a $3.5 million-per-person tax

exemption is in force for farm heirs.While Farm Bureau’s ultimate goal isrepeal of the estate tax, the organizationsupports a current proposal to phase in a$5 million individual/$10 million coupleexemption and a top tax rate of 35 per-cent.

After a 10-year phase-in period, theexemption would be indexed to inflationto track more closely with the economy.

Nielsen noted both Republican andDemocrat lawmakers are in favor of a“permanent” estate tax fix. The othermajor option being touted on Capitol Hill

is straight one-year extension of the cur-rent exemption.

“This is bad,” AFBF’s Pat Wolff toldFarmWeek. “If they only do a year,you go from repeal to having a $3.5million exemption — that’s a huge (fed-eral) revenue raiser. Then you go intothe next year, and the exemption is $1million.

“To get back from $1 million to $3.5million, you have to offset — you have topay for it just to get back to where youwere the year before. It’s bad, bad, bad.

“Even worse, (Congress) could dosomething retroactive (to recover ‘lost’revenues).”

Mere estate tax extension deemed ‘bad, bad, bad’

WAITING FOR LOAD

Rod Fluegel of Minier in Tazewell County waits for his uncle, Robert Dietrich, also of Minier, to arrivewith another hopper full of soybeans. Fluegel reported 120 acres of soybeans had been harvested byearly last week with an average moisture content of 12 percent and an average yield of 60 bushelsper acre. They planned to begin corn harvest last week. Good weather allowed farmers to make se-rious headway on corn and bean harvest in the state. See story on page 7 for an update. (Photo byKen Kashian)

Page 2: FarmWeek edition November 16 2009

FarmWeek Page 2 Monday, November 16, 2009

(ISSN0197-6680)

Vol. 37 No. 46 November 16, 2009

Dedicated to improving the profitability of farm-ing, and a higher quality of life for Illinois farmers.FarmWeek is produced by the Illinois FarmBureau.

FarmWeek is published each week, except theMondays following Thanksgiving and Christmas, by theIllinois Agricultural Association, 1701 Towanda Avenue, P.O.Box 2901, Bloomington, IL 61701. Illinois AgriculturalAssociation assumes no responsibility for statements byadvertisers or for products or services advertised inFarmWeek.

FarmWeek is published by the Illinois AgriculturalAssociation for farm operator members. $3 from the indi-vidual membership fee of each of those members go towardthe production of FarmWeek.

Address subscription and advertisingquestions to FarmWeek, P.O. Box 2901,Bloomington, IL 61702-2901. Periodicalspostage paid at Bloomington, Illinois, andat an additional mailing office.

POSTMASTER: Send change of address notices onForm 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL61702-2901. Farm Bureau members should sendchange of addresses to their local county Farm Bureau.

© 2009 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

Daniel Grant ([email protected])Editorial Assistant

Linda Goltz ([email protected])Business Production Manager

Bob StandardAdvertising Sales Manager

Richard VerderyClassified sales coordinator

Nan FanninDirector of News and Communications

Dennis VerclerAdvertising Sales RepresentativesHurst and Associates, Inc.P.O. Box 6011, Vernon Hills, IL 600611-800-397-8908 (advertising inquiries only)

Gary White - Northern IllinoisDoug McDaniel - Southern IllinoisEditorial phone number: 309-557-2239Classified advertising: 309-557-3155Display advertising: 1-800-676-2353

Quick TakesEMERGING ISSUES

Flags at half staff because of the shootings at Ft. Hood, Texas,adorned Memorial Drive at Mulberry Grove Cemetery in BondCounty last week during Veterans Day, one of many observanceshonoring veterans that day, including the Pizzas 4 Patriots activityin the Chicago area described below. (Photo by Ken Kashian)

VETERANS RECEIVE ‘SLICE OF HOME’ — Veter-ans around the country were served a “slice of home” lastweek in honor of Veterans Day.

America’s dairy farmers and the non-profit organizationPizzas 4 Patriots delivered pizza and milk to Veterans Admin-istration hospitals in Chicago and other U.S. cities to honorthose who served this country, the Midwest Dairy Associa-tion reported.

“Dairy farmers have a long-standing tradition of support-ing our local communities, so we are pleased and honored tojoin the nation in celebrating the service and sacrifice ofAmerica’s veterans,” said Scott Halpin, a dairy farmer and Illi-nois Farm Bureau district director from Gardner.

Pizzas 4 Patriots — a program conceived by Kent Evans,the 15-year-old son of a retired Air Force master sergeantfrom Elk Grove — is in its second year and aims to deliver a“slice of home” to U.S. service men and women domesticallyand abroad.

Mike Kenyon, a dairy farmer and IFB district director fromSouth Elgin, was pleased to be involved the effort. “I thinkdairy farmers are extremely proud of being able to do this forVeterans Day,” he said.

QUINN SIGNS ENERGY PROJECTS BILL — Gov.Pat Quinn last week signed legislation that provides a state-backed guarantee supporting construction of energy-efficien-cy projects. It expands a law signed in July that created thesame guarantee for renewable energy and clean-coal projectsin the state.

The legislation will allow the state and the Illinois FinanceAuthority (IFA) to make up to $3 billion in guaranteed energyproject financing available for qualified renewable energy andclean-coal projects.

In addition, the law increases the state and IFA’s loan guar-antee from $75 million to $225 million for agricultural busi-nesses. It also provided guarantees for qualified renewableenergy projects such as wind, biodiesel, or biomass initiativesrelated to agriculture.

Federal health care debatecontinuing into DecemberBY MARTIN ROSSFarmWeek

Congress likely will be embroiled in thehealth care debate “until the snow starts flying,”Illinois Farm Bureau National Legislative Direc-tor Adam Nielsen predicted Friday.

That means contentious climate debate couldbe put on ice until the2010 session.

In an RFD Radio-FarmWeek interview,Senate Majority LeaderDick Durbin said Senatehealth debate likelywould begin in earnestafter Thanksgiving.

Senate leaders lastweek were awaiting aCongressional Budget Office (CBO) analysis ofdraft proposals to determine whether theywould be at least deficit-neutral. According tothe Springfield Democrat, that is a key presiden-tial directive.

While the House recently approved its ownpackage, including a controversial government-managed “public option,” the Senate is dividedover strategies for extending health coverage tocurrently uninsured Americans.

Durbin sees key challenges ahead, despiteconsensus over issues such as consumerchoice and elimination of pre-existing healthconditions as a key consideration in individualcoverage and concerns over spiraling healthcosts.

“The public option has been a focus of a lotof debate,” he acknowledged. “The other thingis how to pay for it: How would you tax busi-nesses or people in America to come up withthe money to make sure we can help those low-er-income categories pay their health care pre-miums?

“But from where I’m sitting, I think there’san awful lot we agree on and we should moveforward on. If we don’t, this current system isgoing to eat us alive.”

The CBO pegged the cost of revised Househealth legislation passed earlier this month atmore than $1 trillion. The plan would pay forextended coverage options primarily through asurtax on households with more than $500,000in annual income.

American Farm Bureau Federation analyst

Pat Wolff stressed Senate proposals were in astate of flux. But a Senate Finance Committeeproposal to boost coverage through regional“co-op” pools has been “pretty much trashed,”and Senate Majority leader Harry Reid (D-Nev.)reportedly has asked the CBO to “score” Sen-ate proposals including a public option, Wolffsaid.

How a Senate-style public option wouldbe structured remains up for debate. Somehave proposed “triggering” the option onlyif congressional cost-control measures failto make health care affordable for con-sumers.

The revised House plan offers at least onekey improvement over original proposals interms of reimbursements for rural providersunder a public option.

Conservative “blue dog” Democrats con-vinced colleagues to provide doctors negotiatedrates for services similar to rates under privateinsurance vs. formula Medicare rates that tendto favor urban providers.

“This is much better for rural areas,” Wolfftold FarmWeek. “The reimbursement underthe public option was written to level the play-ing field for rural America.”

BY DANIEL GRANTFarmWeek

Now that harvest has final-ly kicked into high gear, farm-ers are running into a newobstacle that could limit theirability to harvest corn.

The heavy demand forgrain drying services has pro-duced temporary shortages ofpropane in some areas.

“Demand is outstrippingthe distribution network’sability to supply it (propane),”said Chris Salrin, director ofpropane operations forGROWMARK.

In just a week’s time at thebeginning of this month, Illi-nois farmers harvested 12percent of the corn crop and34 percent of all the state’ssoybeans.

The sudden influx of wetgrain pushed demand for

grain drying services andpropane to levels unseen insome time.

The distribution system“just cannot move it fastenough to keep up with graindrying demand,” Salrin said.“The ironic thing is theinventory (of propane) at thehubs is in good shape.”

A large portion of propanethat is sold in Illinois origi-nates via pipeline fromKansas. GROWMARK cur-rently is working to bringadditional supplies into Illi-nois from a pipeline that orig-inates in Texas, according toSalrin.

“We’ve very focused onmeeting the supply needs ofour members,” he said.“We’re looking at alternativesupply sources.”

Propane supplies likely will

remain an issue for at leastthe next two weeks as just 37percent of the nation’s corncrop was harvested as of thefirst of last week.

“With only about one-thirdof the corn crop out we’vestill got a lot to go,” Salrinsaid on Friday. “I think we’llsee a tremendous amount ofdemand the next 10 to 15days.”

Ironically, while rain playeda large role in keeping mois-ture levels in corn so highthis fall, enough rainfall toslow harvest might aid inrelieving the temporarypropane shortage if grain-drying demand at elevators isreduced.

Salrin said propane pricesshould remain firm, and amajor run-up in prices isunlikely.

‘From where I ’m si t t ing, I th inkthere’s an awful lot we agree onand we should move forward on.’

— Sen. Dick DurbinSpringfield Democrat

Harvest demand outstrippingthe existing propane supplies

Page 3: FarmWeek edition November 16 2009

INPUTS/ OUTPUT

FarmWeek Page 3 Monday, November 16, 2009

Ralph and Karen Voss and their family members grow and sell about 10 varieties ofpecans near Carlyle in Clinton County. The Vosses, believed to be the largest commer-cial pecan growers in the state, saw their pecan yield this year drop to well below av-erage. That was in part due to it being an off year for pecan tree production (pecansproduce more heavily in alternate years) and this year’s disease-promoting wetweather. They are anticipating 10,000 to 15,000 pounds of pecans this year, com-

pared to 80,000 pounds last year. The family normally would be finishing pecan har-vest this time of year, but the wet ground has kept them out of the pecan groves, andthey had only about 2 percent of the crop harvested by last week. They producepecans from 1,500 trees on 110 acres. The Vosses sell whole, cracked, and shelledpecans from their farm. They also sell pecans as seed stock to individual customersand state nurseries. (Photos by Ken Kashian)

House ‘security’bill threatens inputdealers, growersBY MARTIN ROSSFarmWeek

Congressional homeland security measures reportedlythreaten the economic security of rural agribusinesses and thegrowers who depend on them.

The House-approved Chem-ical Facility Anti-TerrorismAct aims to prevent terroristactivities at domestic chemi-cal facilities.

However, the AmericanFarm Bureau Federation(AFBF) and others told law-makers the measure would “jeopardize the availability of wide-ly used, lower-cost sources of essential plant nutrient productsor certain agricultural pesticides.”

At issue are provisions requiring protected facilities to adopt“inherently safer technology” (IST) that minimizes terrorismrisks. Under the measure, the U.S. Department of HomelandSecurity (DHS) could dictate “safe” practices or even productsubstitutions based on a plant or dealer’s location or proximityto key population centers.

Most anhydrous ammonia facilities are under DHS jurisdic-tion, Illinois Fertilizer and Chemical Association (IFCA) Exec-utive Director Jean Payne noted. Under the House plan, DHSwould consider the safest product options — “not the mostaffordable and certainly not the most effective,” said Payne.

“If you’re a dealer offering 28 percent liquid or dry fertilizeror ammonia, and you’ve been deemed by Homeland Securityto be a threat, they could say you have to offer products thatare inherently more safe,” Payne told FarmWeek. “Therefore,ammonia would be out.

“We have a few ag retailers in a ‘Tier 4’ category for facili-ties that would have to take extra security measures. If (Con-gress) moves ahead with this inherently safer technology con-cept, it’s going to be very problematic for those facilities tocontinue to offer ammonia.

“That’s going to put them at a huge competitive disadvan-tage. The farmers who would have relied on that dealer forammonia either are not going to have it available to them orwill have to bring it in from a more distant location.”

The Senate has yet to introduce companion legislation. IFCA and others were able to keep IST provisions out of

original homeland security legislation. Payne noted a “close”230-193 vote on the new proposal, which was opposed byHouse Republicans and 21 Democrats including U.S. Reps.Debbie Halvorson of Crete and Phil Hare of Rock Island.

A proposed deal between the State of Illi-nois and a prospective Mattoon power facilityoffers an “opportunity” for consumers and tax-payers faced with a potential new carbon econ-omy, according to an East-Central Illinois eco-nomic development specialist.

The U.S. Department of Energy (DOE) isexpected soon to reach a decision regardingFutureGen, a275-megawatt,zero-emissionscoalresearch/powerfacility thatwould capturecarbon dioxidefor storagewithin Illinois’Mt. SimonSandstone For-mation.

DOE shelvedFutureGen aftera Coles County site was selected in 2007, butSpringfield Democrat U.S. Sen. Dick Durbinand U.S. House colleagues helped revive federalinterest in the project.

In an RFD Radio-FarmWeek interview,Durbin said he saw a “good chance” DOEwould green-light FutureGen by Jan. 1.The senator, who discussed the projectrecently with Gov. Pat Quinn, hailed itspotential to render coal-based greenhouseemissions harmless and generate “good-paying jobs.”

The Illinois General Assembly’s proposal topurchase all initial electricity generated byFutureGen has raised some concerns about theproject’s potential budgetary and taxpayerimpacts.

However, supporters say the Illinois dealwould help FutureGen qualify for more than $1billion in federal grants to help finance its con-struction, and Angela Griffin, CEO with theeconomic development organization ColesTogether argues Illinois consumers could bene-fit from the arrangement under a “cap-and-trade” scenario.

According to many analysts, U.S. House-pro-

posed greenhouse emissions caps would imposea particular burden on Midwest coal-poweredutilities. Underground sequestration of carbondioxide at FutureGen would put the Mattoonplant — and Illinois — in a position to offsethigher power costs resulting from cap andtrade.

“At some point, this could be even lower-priced power ifthere were avalue to carbon— if some-thing happenedat the nationallevel related tocarbon man-agement ormitigation,”Griffin toldFarmWeek.

“It seems asthough, at aminimum,

costs would be not much higher than anaverage rate, and potentially lower. Andthere’s a 2 percent cap (over rates for com-peting electricity) written into this legisla-tion, so even in a worst-case scenario, theycould never be higher than 2 percent of mar-ket rates.”

Energy Secretary Stephen Chu has indicatedDOE would be willing to invest an estimated$1.1 billion in FutureGen development if theFutureGen Alliance, an international consor-tium spearheading the project, supplies designand updated cost estimates for the Mattoonlocation and added research on its sequestrationcapabilities.

In addition, DOE has recommended thealliance increase its membership from roughly adozen partners to 20, each contributing $20million to $30 million to boost private projectfunding.

Griffin reported the FutureGen Alliance ison track with “self-imposed” deadlines forsubmitting necessary DOE data. “They are, aswe speak, meeting with potential new Alliancemembers,” she said last week. — MartinRoss

FarmWeekNow.comListen to Jean Payne’s com-ments on how the chemical se-curity bill will impact ag busi-nesses at FarmWeekNow.com.

FutureGen proposal seenas ‘opportunity’ for Illinois

‘At some point , th is could be evenlower-priced power.’

— Angela GriffinColes Together

IT’S PECAN TIME

Page 4: FarmWeek edition November 16 2009

AROUND ILLINOIS

FarmWeek Page 4 Monday, November 16, 2009

A roomful of East-Central Illinois representatives listen as USDA Rural Development specialist Susan Petreadescribes programs and funding available through her agency. Illinois Rural Development Director ColleenCallahan last week held the first of four regional meetings at Parkland Community College, Champaign.(Photo by Kay Shipman)

State recruiting ag teachersthrough video and websiteBY KAY SHIPMANFarmWeek

Illinois ag educators are reaching out to potential ag teachersthrough a teen-friendly video and website at {www.TeachAg.net}.

The Illinois Facilitating Coordination in Agricultural Educa-tion (FCAE) team designed the website to provide students withcareer-related information and answer their questions, accordingto Mindy Bunselmeyer, FCAE program adviser.

“As that (website) was coming along, we thought it would benice to have a video,” Bunselmeyer added. The group wasinspired by a California ag teacher video that Bunselmeyer hadseen at a National Agriculture in the Classroom conference.

The video, entitled “Inspiring Minds to Grow,” was filmed lastfall and launched earlier this year. It features brief interviews withhigh school ag instructors, university ag education professors,college students majoring in agriculture education, state FFA offi-cers, and high school ag students.

The website provides information on careers related to ag edu-cation, career exploration opportunities for students, andscholarships. It also includes teacher testimonials and informa-tion on teacher salaries.

Students may complete online requests for additional generalinformation or specific information from the four state universi-ties with ag education programs.

The video is posted online at {www.TeachAg.Net}. Each dis-trict FCAE program adviser also has a DVD of the recruitmentvideo available for loan to interested groups, she added.

For more information, contact the FCAE state office at 217-893-0091.Illinois Rural Development offering

millions for eligible rural projects

With millions spent and millions moreavailable, USDA Illinois Rural Developmentis encouraging rural leaders to take advantageof a unique opportunity.

“This is an incredible opportunity for allof us,” Colleen Callahan, state Rural Devel-opment director, told a packed meeting roomlast week. “We have funding available rightnow that we’ve never had before.”

That’s because federal stimulus fundinghas significantly increased the funds available

for several programs; however, that moneymust be allocated by September 2010, Calla-han said.

Callahan and three Rural Developmentspecialists spoke at the first of four regionalmeetings she has scheduled.

The crowd at Parkland Community Col-lege, Champaign, included engineers,bankers, business owners, village and townofficials, economic development staff, waterofficials, and individuals with non-profitorganizations.

For fiscal year 2009, Illinois Rural Devel-opment allocated a total of $354.539 millionthrough its business, community, waste andwater, and housing programs, according toCallahan.

Currently, Illinois Rural Development’sbusiness program has $45 million available;community program, $6.4 million; waste andwater treatment, $14 million; and rural hous-ing, $224 million.

Ruth Stauffer, executive director of theDeWitt Development Council, attended tolearn about program opportunities for com-munities in her county.

Stauffer said the county recently workedwith Rural Development on a grant to estab-lish a revolving loan fund.

Ralph Kirk with HealthCom, based in Sul-livan, said his company works with rural hos-pitals to provide technology for rural senior

citizens. The monitors

and other deviceshelp rural seniorslive in their homes,allowing healthcare professionalsto check theseniors’ healthconditions fromtransmitted data,Kirk explained.

Callahan saidshe was pleased by

the size of the crowd and noted many peo-ple stayed to ask questions and take programapplications.

“Rural Development does help people, andwe have the potential to help even more peo-ple,” she said.

The remaining regional meetings will runfrom 10 a.m. to noon.

The dates and locations are: today (Mon-day), Quincy, call 217-243-1535 for freereservations; Thursday, Edwardsville, call618-993-5396; and Nov. 23, Kankakee, call815-935-1177.

For information about Rural Developmentprograms, go online to {www.rurdev.usda.gov/IL/} or call 217-403-6200. — Kay Ship-man

Pioneering food marketingwebsite continues to expand

An online resource designedto connect farmers, distributors,buyers, and sellers recently wascited as one of the University ofIllinois’ most prolific licensedtechnologies.

The website, known as Mar-ketMaker, got its start as an Illi-nois Council on Food and Agri-cultural Research (C-FAR)research initiative. MarketMak-er’s scope has grown exponen-tially from its initial start in 2004to where it now connects Chica-go area consumers with Illinois-grown meat products.

The program’s searchabledirectory includes an array offood products and provides aquick and simple method tolocate thousands of farmersand food-related ventures.

The website is being used byan average of 65,000 peopleevery month. There is no chargeto use the MarketMaker site.

“When C-FAR’s membershipfunded this initiative, it washighly forward-thinking on theirpart and on the part of theresearch team proposing theidea,” said Jerry Hicks, C-FARchairman.

“At that time, the interest in‘buying local’ was very abstract;there was no meaningful mecha-nism for it to occur,” Hicksadded.

MarketMaker also hasexpanded to the national level.Currently, 15 states and the Dis-trict of Columbia have obtaineda license to use the MarketMak-er website in their states. Addi-tional states are considering alicense.

The U of I office of technol-

ogy management administersthe intellectual property rightsof the program and the licens-ing agreements. The issuance oflicenses includes a fee paid bythe state seeking to use the pro-gram.

“MarketMaker is a fascinat-ing model that is soundly basedon research, public service, andour land-grant university’s mis-sion,” said Lesley Millar, direc-tor of the U of I office of tech-nology management.

“Its practical world use isamazing. It is one of the mostunique initiatives we haveadvanced,” Millar added.

In addition to the fundsreceived from licensing agree-ments, MarketMaker has beeneffective at leveraging outsidefunding, including money fromthe federal government.

The MarketMaker programcontinues to evolve and expand.Recently, developers added ablog to include insights andexpertise from the site’s partici-pants. They also added a “Buy-ers-Sellers Forum,” whichincludes a calendar of productavailability.

Darlene Knipe, U of IExtension marketing and busi-ness development specialistwho has been a driving forcebehind MarketMaker, creditedC-FAR’s support for giving theonline marketing resource astrong foundation.

The Illinois MarketMakerwebsite is {www.marketmak-er.uiuc.edu}, and the nationalsite is {http://national.marke-tmaker.uiuc.edu}.

‘Rural Development does helppeople, and we have the potentialto help even more people.’

— Colleen CallahanIllinois Rural Development director

Regional meetingsto provide overview

Page 5: FarmWeek edition November 16 2009

PRODUCTION

FarmWeek Page 5 Monday, November 16, 2009

Refuge report ignores changing biotech issuesBY MARTIN ROSSFarmWeek

A new report questioningproducers’ GMO crop stew-ardship fails to consider rapidadoption of and “nuances” inrefuge placement associatedwith newer Bt corn products, aPioneer refuge specialist toldFarmWeek.

The activist Center forScience in the Public Interest(CSPI) charges that as muchas 15 percent of the coun-try’s corn acreage is out ofcompliance with insectrefuge management (IRM)requirements.

In the Corn Belt, the U.S.Environmental ProtectionAgency requires a 20 per-cent-per-farm non-Bt refugeto ensure continued insectresistance to biotech vari-eties.

A non-Bt plot must be

where the refuge is placed,and I think that’s some ofthe gap here.

“If you look at the plant-ing season this past year, wehad a narrow window andguys were moving quickly tomake sure to get corn plant-ed in as timely a fashion asthey could.

“There are a lot of mov-ing parts to a grower’s opera-tion. With a triple-stackproduct, some added steps

need to take place.” Growers may strip-plant

non-Bt varieties into triplestack plots or plant blocks ofnon-Bt corn in or adjacentto triple stacks.

Both require producers toselect refuge varieties withsimilar herbicide traits andmaturities, and block plant -ing necessitates equipmentcleaning between triple stackand non-Bt plantings, Belzersaid.

planted a) within 1/2 mile ofeach corn borer-resistant Btfield, or b) in the same field asor adjacent to rootworm-resis-tant Bt hybrids, with a ditch orroad separating the plot fromother non-rootworm-resistantfields.

Pioneer senior corn mar-keting manager Bill Belzernoted a key point of the CSPIreport — “The majority ofgrowers (a reported 86 per-cent in 2008) are in compli-ance.”

He cited a higher rate ofcompliance with refuge sizerequirements, saying the major“gap” was in producer compli-ance with refuge distancerequirements.

Belzer noted “trait adop-tion is very rapid,” and withthe advent of “triple stacks”(multi-trait varieties withherbicide tolerance and

resistance to both above-and below-ground pests),refuge size requirementshave remained consistent,but details about placementhave changed relative toolder corn borer-resistantvarieties.

“Essentially, you have toplace that refuge in or adja-cent to the triple-stackedproduct in the field,” hetold FarmWeek. “Thereare some nuances about

Two new curves are being added to theinsect refuge management (IRM) mix, but,according to Pioneer’s Bill Belzer, an expand-ed biotech crop insurance endorsement shouldhelp producers navigate the refuge learningcurve.

One new development is release of Mon-santo’s eight-trait SmartStax technology, whichblends herbicide tolerance with broad-spec-trum insect resistance. The EnvironmentalProtection Agency (EPA) has approved areduced 5 percent block/strip refuge for“Genuity”-branded SmartStax varieties plant-ed next spring.

EPA is reviewing DuPont-Pioneer’s Opti-mum AcreMax I, a multi-trait “refuge-in-the-bag” product that blends a high per-centage of Herculex Xtra above/below-ground-resistant seed with a lower percent-age of non-rootworm-resistant Herculex I

seed to provide rootworm refuge in a singleplanting.

Rootworm larvae do not travel far, andintegrated bagged refuge thus “matches upwith rootworm biology really well” and offersadditional “trait durability,” Belzer said. Heanticipates federal approval of AcreMax forthe 2010 season.

Meanwhile, Belzer sees an expanded 2010biotech endorsement (BE) offering “anopportunity to have another conversation”with producers about refuge compliance.

BE offers premium discounts to producerswho plant eligible multi-stack varieties on 75percent of covered acres, and Belzer suggest-ed dual refuge/BE requirements will helpgrowers with their stewardship.

“It’s not that it changes anything (withIRM), it just gives us a chance to reinforce it,”Belzer told FarmWeek. — Martin Ross

Biotech advances, insuranceoption underline IRM issues

Webinars to addresswet corn strategies

A pair of Internet-based seminars will be held in comingweeks by the University of Illinois to assist producers who havequestions or concerns about handling wet corn.

The first webinar will be held from noon to 1 p.m. Wednes-day. The second will be from noon to 1 p.m. Dec. 3.

Producers can get more information or sign up for eitherwebinar at the website {http://events.idtg.uiuc.edu/wet_corn}.

The webinars will address key concerns and questions such ashow to price wet corn, status of molds and mycotoxin forma-tion, storage alternatives, and the feed value of immature cornfor livestock.

A combination of late planting, a cool summer, and a recordwet fall has produced a corn crop that often has tested at 25 to30 percent moisture levels.

The webinars will be coordinated by Mike Hutjens, U of IExtension dairy specialist, and there is no charge.

Auction Calendar

Tues., Nov. 17. 10 a.m.3055 +/- Ac. KiltonFarms, Inc., HILLS-BORO, IL. Aumann

Auctions.Tues., Nov. 17. 10 a.m.

240 Ac. Farmland.Chrystal F. ThompsonTrust, PONTIAC, I L.Immke and Bradleys’

Auction Service.Tues., Nov. 17. 10 a.m.575 +/- Ac. McLean Co.

David Davis IV Trust,Commerce Bank, N.A.Trustee, HEYWORTH,

IL. Farmers National Co.Wed., Nov. 18. 10 a.m.199.79 Ac. McDonoughCo. William E. Miller St.

and James A. Miller,BUSHNELL, IL. Roberts

Auction Service.Sat., Nov. 21. 10 a.m.Watch FOB Collection.Gorton Family, JACK-

SONVILLE, IL.Middendorf Bros.

Sat., Nov. 21. 10 a.m.80 Ac. Land Auction.Father Mike Lebrandi,MT. CARROLL. Jim

Calhoun, Auctioneers.Sat., Nov. 21. 11 a.m.

70 Ac. Lee Co. KennethMall Deceased & Heirs,

ASHTON, IL. LennyBryson, Auctioneer.

Sat., Nov. 21. 10 a.m.Real Estate. Charles

Lukas Trust/Mary LukasTrust, COLLINSVILLE,

IL. Ahrens and Niemeier,Auctioneers.

Mon., Nov. 23. 10:30a.m. Land Auction. Mary

H. Shaw Rev. Trust,SEYMOUR, IL. GordonHannagan Auction Co.Mon., Nov. 23. 7 p.m.230 Ac. Montgomeryand Fayette County.

Anita and Ottis CroweTrust, NOKOMIS, IL.

Cory Craig, Auctioneer.Tues., Nov. 24. 10 a.m.

Farmland Auction. A.Renee Extell & C.U.

Calvert/Rieckert, SUB-LETTE, IL. Dick

McConville and JoeMcConville, Auctioneers.

Sat., Nov. 28. 10 a.m.Farm Auction. Mr. Jim

Thompson, JACKSON,TN. James R. Cash,

Auctioneer.Sat., Nov. 28. 10 a.m.245 +/- Ac. HendersonCo. Ray L. Myers Farm,LAHARPE, IL. Sullivan

Auctioneers.Mon., Nov. 30. 10 a.m.

98.9 Ac. Coles Co.Louise Brockjones Ltd.

Partnership,CHARLESTON, IL.

Stanfield Auction Co.Tues., Dec. 1. 6 p.m.

240+/- Ac. Adams Co.Richard E. Perry, JeanM. Staats, Matthew L.

Levins, Jane M.Williams, Bernard F.

Perry, James E. Perry,Julie A. Gieselman,

MENDON, IL. SullivanAuctioneers.

Tues., Dec. 1. 10 a.m.McDonough Land

Auction. Heirs of theForothy McClure FoxTrust, MACOMB, IL.Lowderman Auction

Co.Tues., Dec. 1. 10 a.m.446.44 Ac. Knox Co.

Dan and Barb Dexter,GALESBURG, IL. Van

Adkisson AuctionService, LLC.

Wed., Dec. 2. 4 p.m.Farmland Auction.Helen Kirk, HOPE-DALE, IL. Anderson

and BostonAuctioneers.

Wed., Dec. 2. 10 a.m.78.58 Ac. McDonough

Co. Donald C.Swartzbaugh, BUSH-

NELL, IL. RobertsAuction Service.

Wed., Dec. 2. 10 a.m.Estate Auction. RobertO. Annett, Estate, Rose

Ostby, Exec., COR-NELL, IL. Immke and

Bradleys’ AuctionService.

Page 6: FarmWeek edition November 16 2009

Bernie Walsh, Durand, Winnebago County: More goodharvest weather last weekallowed almost everyone towrap up the soybean harvestfor 2009. Now it’s full steamahead in the corn harvest.Thankfully, the corn has drieddown nearly 10 points in thelast two weeks. Moisture lev-

els in the mid-20s are common, withsome varieties in the low 20s and somestill near 30 percent moisture. Lots of falltillage, fertilizer, and nitrogen applicationalso are well under way. Remember tostay safe during this very busy time of theyear.

Pete Tekampe, Grayslake, Lake County: Another dryweek in Lake County with thehighs in the mid-60s. Wherewas this weather in October?Only a couple of sprinkles, butnot enough to stop cuttingbeans. Most of the beans arecut. I finished Tuesday.Moisture was 13 to and 14 per-

cent with the yields in the mid- to upper-20s. Not much corn is picked yet with themoisture being close to 30. Hopefully,some corn will be picked this week. A lightshower was expected over the weekendwith cooler temperatures at the beginningof this week. Be careful and have a safeweek.

Leroy Getz, Savanna, Carroll County: A great weekfor harvest. Beans are downto the last 10 percent. Corndrying is still a problem eitheron the farm or at the eleva-tors. Elevators stoppedreceiving to empty their wetbins. When they stoppedreceiving corn at Savannah,

both wet and dry corn went to anotherelevator, causing long lines and delays.There are still stories of combines stuckin mud holes.

Ron Frieders, Waterman, DeKalb County: Good weath-er enabled farmers to finishsoybean harvest last week. Iwould estimate 80 percent ofthe yields were far belowexpectations. Corn harvest isgoing full speed, but progressis not. Moisture in corn is veryhigh. People still are harvesting

corn as high as 34 percent moisture. If youfind a field of corn below 30 percent, youfeel lucky. Yields and test weight are verydisappointing this year. Please remembersafety.

Larry Hummel, Dixon, Lee County: The month ofNovember so far has turnedout some excellent harvestingweather. Combines are rollingeverywhere you look. Almostall of the soybeans in thearea are out of the field and inthe bin with fans running tobring the moisture down.

Corn harvest might be reaching the 25percent done level. But the pace shouldbe picking up with moisture levels falling.The driest corn I have heard of is 23 per-cent, but most of the corn is coming outat 26-32 percent. Our grain dryer cankeep up with the combine at 27 percentmoisture, but if you add another 3 pointsto that, it feels like someone threw theanchor out.

Joe Zumwalt, Warsaw, Hancock County: The past fewweeks have been kind to us inWestern Illinois allowing somemajor progress on the harvestfront. I would guess that90 percent of the soybeanshave been cut and about60 percent of the corn hasbeen shelled. A few have done

some tillage, but not too many or verymuch. Custom applicators have begunsome anhydrous applications, but again, ithas been limited. Elevators continue totake in massive amounts of wet grain, butso far have been able to keep the doorsopen. Nevertheless, it has been one longfall harvest season already. We haveabout 100 acres of corn left, so we arekeeping our fingers crossed that theweather holds out for a few more days.Lord knows we have played in the mudlong enough.

Ken Reinhardt, Seaton, Mercer County: Harvest lurcheson. We have had nice weatherbut long lines at the elevatorswhen they are taking wet corn.Soybean harvest is nearly done.There has been a wide range inyields, and some 20s to 30s inthe southeastern part of thecounty where white mold was the

worst. Corn moisture has dropped some. TheSoil, Water, and Conservation District no-tillcontinuous corn plot planted May 11 aver-aged 23 percent moisture with a range of18.5 percent to 28 percent. The averageyield was 196 on 54 hybrids. Tile contractorsare busy. It’s easy to see with yield mappingthe benefits of additional drainage.

Ron Moore, Roseville, Warren County: We received 0.2 ofan inch of rain last Tuesdaymorning. The sun came out andwe started harvest again thatafternoon. It was good weatherto finish up the beans last week.Corn harvest has been slowbecause of the high moisturecontent The elevators are getting

full and shutting down to catch up on drying.We have only five good days of harvest left,but it might take up to two weeks to get fin-ished. Fertilizer is now being applied on theacres that are harvested.

Jacob Streitmatter, Princeville, Peoria County: Harvest iswell under way. Soybeans havedisappeared from the horizon forthe most part, but a lot of corn stillstands. Corn moisture for us hasbeen anywhere from 33 to26 percent. The elevators arelined up and full of wet corn bymid-day. The elevators have even

been full at 8 a.m. At this rate, I bet there willbe a lot of corn still standing next year. Rainlast week totaled 0.3 of an inch, but the fieldsseem like it rained 3 inches. We shall seewhat this week brings.

Tim Green, Wyoming, Stark County: A good week last week.There still are a few beans hereand there, but in general mostpeople are done. The bean cropwas a little disappointing, with alot of beans in the 40-bushelrange. Corn moistures finallyhave come down a little bit, butthere is a lot of 26-27 percent

corn. It doesn’t sound like much, but it sure ishelping out the corn dryers and the elevatorpeople, too. LP is getting short and it is start-ing to become another problem we have tomanage. Hope the weather holds, and be safe.

Mark Kerber, Chatsworth, Livingston County: We are for-tunate that weather has givenmost producers a chance to fin-ish with their soybeans. Corn har-vest is in full swing. Drying wetter-than-usual corn has created linesand shutdowns at elevators.Farmers with their own dryersalso are finding it slow going to

dry out wet holding bins. With combines sittingat times, many have jumped on their tractorsand started fall tillage. The strip-till guys haveall started. Field conditions are still a littlemuddy. We have used the auger wagon andtractor twice to pull stuck loads out of the field.

Ron Haase, Gilman, Iroquois County: The majority of soy-beans are done in this area. Cornwas being harvested all week witha little time lost due the rain onTuesday. We received 0.2 to 0.3 ofan inch of rain. Overall, the mois-ture range of what I have harvest-ed has been 19 percent to 23 per-cent. So the moisture has dried

down a little bit in the field. With more farmersdone with soybeans, the line at the elevator forwet corn has become longer. The local elevatorhas been receiving wet corn until 11 a.m. eachday thus far. We have harvested 29 percent ofour corn at this point. That means we got12.5 percent done last week with 71 percentyet to go. How long will that take? Thursday, thecombine broke down and we lost one day ofharvesting. Hopefully, that will get fixed so wedo not lose more time. With our free after-noons, we have begun tilling the farms we havefinished and have had fertilizer spread on sowe can get some of the tillage done before theweather shuts that down for the year. The localclosing prices for Nov. 12: nearby corn, $3.57;fall 2010 corn, $3.96; nearby soybeans, $9.68;fall 2010 soybeans, $9.52.

Brian Schaumburg, Chenoa, McLean County: Theonslaught continues. Soybeansare 95 percent harvested andcorn 35 percent. Elevators nowclose at noon or 2 p.m. Moistureis down to an average of 24 per-cent and some are able to utilizelow-temp bins. NH3 and dry fer-tilizer are being applied and

some have tried tillage. Ever wonder howmuch grain is on wheels in a single day?Corn, $3.57, January corn, $3.73; fall 2010,$3.99; soybeans, $9.65; January, $9.70, fall2010, $9.59.

Steve Ayers, Champaign, Champaign County: Novemberand October weather forecastsseem to have switched (thankful-ly) and we finally had a produc-tive harvest week. Soybean har-vest wrapped up Wednesdayafter a brief shower knocked usout of the field Tuesday after-noon. The elevator closed to wet

corn on Thursday to catch up on drying, sowe were looking forward to combining cornFriday. USDA had our crop reporting districtat 30 percent of the corn and 81 percent ofthe soybeans harvested as of Nov. 9. Lookslike showers through next Wednesday. Thinksafety!

Wilfred Dittmer, Quincy, Adams County: It was a goodweek for harvesting in our neckof the woods and several fieldsshowed that progress can bemade with just a little coopera-tion from Mother Nature.Tuesday was the only day ofrain the past week, with onlyabout 0.1 of an inch in my

gauge while some received considerablymore. Most machines have been running insoybeans where yields are good but noth-ing to write home about. I thought lastyear’s beans were short, but a lot of themare this year, too. That 42.95 inches ofwater for the year just didn’t let the soils dryout much to breathe. Nearby, most cornfields are still standing with only a fewbeing shelled. We probably all need anoth-er two or three weeks of favorable weatherto get things wrapped up for a most unusu-al year. Do be careful — the life you savemay be your own.

Harry Schirding, Petersburg, Menard County: Rainfalllast week, 0.06 of an inch.Total for November, 0.11 of aninch. Normal for November,2.87 inches. Corn harvestcontinues with only a shortpause on Tuesday for lightshowers. Field conditions con-tinue to improve, although

there are areas that still will not supportharvest equipment. Yield monitors areindicating where corn yields would havebenefited from tile. Elevators are betterable to keep up now that moisture levelsare in the low 20s. Approximately 5 per-cent of the soybeans remain to be har-vested. The record moisture of Octoberhas made it difficult to maintain anacceptable wheat stand. Producershoped to get more wheat planted, buthave abandoned those plans. Corn near-by, $3.61, up 10 cents; soybeans nearby,$9.63, up 11 cents; January corn, $3.64,up 8 cents; January soybeans, $9.73, up14 cents.

Todd Easton, Charleston, Coles County: Just conclud-ed another late night out in thefield, one of several in the pastweeks, which is a good signthat progress is being made.Standing soybeans have beennowhere to be found for thelast week as producers arealmost completely engaged in

harvesting the corn crop. Moistures arerunning in the 18- to 20-percent range, stillmaking the elevator lines long and slowbut not as bad as they have been. Tillagetools have been out in large numbers nowthat soil conditions have improved.Judging from the basketball-sized clodsrippers are leaving behind them, this yeardid a lot of damage to the soil structure.After a whole year of weather-related com-plications, the last couple of weeks havebeen a blessing. Hopefully, the forecastedrains won’t amount to much and we canget the bulk of this harvest finished beforethe end of the month.

CROPWATCHERS

FarmWeek Page 6 Monday, November 16, 2009

Page 7: FarmWeek edition November 16 2009

Dean Shields, Murphysboro, Jackson County: We had awonderful week of weather inSouthern Illinois. A lot ofprogress was made in harvest-ing the corn, soybeans, andmilo. We knocked a lot of acresout and are getting down to notso many acres left. It is dryenough now that we are seeing

a little bit of fall tillage start up again. Maybesome of that land will see some wheat. Westill are having flooding problems in some ofthe lowlands. The water is not off of themyet, but it is going down with the pumps thatwe have. Maybe this week, if we don’t gettoo much rain, we may be able to get in andget that. Overall, it was a good week inJackson County for harvest, and let’s hopethe weather continues.

Ken Taake, Ullin, Pulaski County: We had another openweek here in Pulaski County.That’s two weeks in a row. Mustbe a record. We finished har-vesting soybeans and we aredown to fewer than 50 acres ofcorn as I file this report. Cornfinally dried down a little bitmore. What we shelled

Thursday was down to a little less than 17percent. Everybody is running as hard asthey can. A few people are finished with har-vest. There are a lot of people spreading fer-tilizer and lime, trying to do fall activities.Please remember to be careful during thisbusy harvest season.

Bob Biehl, Belleville, St. Clair County: Almost two weeksof straight combining and mostof the time has been spent inbeans. We finished up the first-crop beans last week and havesome double-crop wheat beansleft. We are going to stay inbeans and get them knockedout before it snows. Bean yields

have been mostly between 44 and 51bushels an acre. The double-crop beans arearound 32 to 35 bushels per acre. Lookslike the aphid spraying made no differenceat all in this area. The first-crop fields Isprayed had no yield difference, maybeeven produced less. The double-crop fieldsmay have responded more. I sprayed a cou-ple of those as well. A little more wheat wassown in the area, especially by those whoneed more for the straw. We salvaged ourwheat fields by patching in the low areasthat didn’t come up after 4 to 6 inches ofrain. I have not heard what corn moistureshave gotten down to after 8 to 10 days ofnice weather. Hopefully they’re below 23percent.

Kevin Raber, Browns, Wabash County: Another produc-tive week of harvest inSoutheastern Illinois. Harvest iswrapping up. I will hopefully bedone by the time everyone getsto read this. It is getting dryenough to do some fieldwork,and I’ve seen several lime pilesout in the fields. Some wheat

was sown this past week, but I think mostpeople have given up on it. As far as I know,there haven’t been any lines at the elevator,but I will find out because the last acres ofcorn need to go to the elevator.

Doug Uphoff, Shelbyville, Shelby County: I would say 95percent of the beans are out inthe county, at least in the north-ern part. We are working prettyhard on corn. Moisture levels areanywhere from 17 to 20 percent.I should make good headway onthat. A lot of fieldwork is beingdone. Some anhydrous and fer-

tilizer are going on. Have a safe week,because I know everyone is tired.

Ted Kuebrich, Jerseyville, Jersey County: This was the sec-ond week in a row that the weath-er was good for harvesting. Thereal late-planted corn still hasmore moisture in it than we wouldlike. Most of the beans are outand fall tillage work has started.The anhydrous wagons areheading to the fields, and there

are a lot of farmers putting on their fall nitro-gen. Prices at Jersey County Grain, Hardin:November corn, $3.69; January corn, $3.82;fall corn 2010, $4.02; November beans, $9.52;January beans, $9.90; fall beans 2010, $9.62.

Dan Meinhart, Montrose, Jasper County: No rain this pastweek. Soybean harvest shouldhave wrapped up over the week-end. A lot of high-moisture corn hascome out of the field. Some drydown is taking place in the field.Corn harvest has a long way to goyet. The ground is settling downquite well. Some fertilizer is being

applied and some fall tillage is being done, espe-cially where ruts have been made. There is achance rain will return to the area the first part ofthis week. Temperatures are expected to runabout 10 degrees cooler than the previous week.

CROPWATCHERS

FarmWeek Page 7 Monday, November 16, 2009

Reports received Friday morning.

Bean harvest nears completion; focus shifts to cornBY DANIEL GRANTFarmWeek

Another stretch of mostlysunny, mild days last weekallowed many farmers tocomplete soybean harvest andturn their attention to cornand fall fieldwork.

Harvest as of the first oflast week was 69 percentcomplete for beans (27 per-cent behind the average pace)but just 31 percent completefor corn (61 percent behindthe average pace).

“Soybeans have disap-peared from the horizon forthe most part,” said Jacob

thunderstorms,” Kelly said.The NWS’ 8- to 14-day

forecast as of Friday called fora chance of slightly above-normal precipitation andabove-normal temperatures.Temperatures in Central Illi-nois this time of year averageabout 50 degrees for the highwith lows near 32 degrees,Kelly said.

Meanwhile, farmers lastweek still had double-cropbeans to harvest while othersattempted to catch up withfall fertilizer applications.

“The first-season beans aredone, so now guys are in dou-

ble-crop beans,” said Adams,who reported bean yields inhis area ranged from 35 to 60bushels per acre for first-sea-son beans and 25 to 40bushels for double-cropbeans. “We had some goodwind and heat that reallyhelped us.”

Josh Curry, a Henry Coun-ty farmer, took advantage ofthe recent dry stretch to applymost of his fall fertilizer.

“We put on two-thirdsalready and we should be ableto finish soon,” Curry said lastweek. “The ground dried upnicely.”

Streitmatter, a FarmWeekCropwatcher from PeoriaCounty. “But a lot of corn stillstands. At this rate, I bet therewill be a lot of corn stillstanding next year.”

Corn moisture declined inrecent weeks, according toLeon Adams, a farmer fromJefferson County, who report-ed some corn in his area lastweek tested below 20 percentmoisture.

But farmers still areencountering long lines andearly closings at elevators dueto the large and wet crop.

“The elevators are getting

full and shutting down tocatch up on drying,” said RonMoore, a Cropwatcher fromWarren County. “It might takeup to two weeks to get fin-ished.”

Harvest progress likely willbe slowed this week. Dan Kel-ly, a meteorologist with theNational Weather Service(NWS), on Friday predictedan incoming cold front andupper level low could parkover the state and bring achance of showers today(Monday) through Wednesday.

“We could kick this weekoff with some showers and

BY JEFF BUNTINGIt’s nice to see the latest Illinois Crop Develop-

ment and Progress report reflect the busy harvestingfrom the last few weeks. However,it may be awhile before we can closethe book on 2009. It is important tothink about next year’s crop nowand discover new technologies.

Over the last few years, cornyields have been outstanding, andsoybean yields have been very good.These yields were because of signifi-cant amounts of fertilizer use fromthe soil. Because of last year’s

record prices in fertilizer and fuel, many changeswere made in normal farming practices.

Some reduced the amount applied or didn’t applyany fertilizer at all. These decisions impacted thisyear’s crops with nutrient deficiencies from the lackof potash or phosphorus. Pull those soil samples,

revisit the nutrient levels, and apply the necessarynutrients, because we all want to maximize our yieldpotential.

Many of you have or soon will make seed selec-tions for next year’s crops. This past year we saw forthe first time Liberty Link soybeans, Roundup Ready2 soybeans, and Agrisure 3000GT. Data are limited,but so far, all three technologies are performing welland are available for 2010.

GROWMARK agronomy evaluated a number ofon-farm discovery plots with these new technologies.Soon, this information will be compiled and summa-rized.

Another new technology to watch is SmartStax incorn, available for the 2010 season. This will changerefuge management and offer added flexibility inpost herbicide options. Your local FS crop specialistcan answer any questions that you might have andwill evaluate all these technologies to help you selectthe best hybrids and varieties.

Recently, there has been an emphasis on applyingfall herbicides to control winter annual weeds. How-ever, there are a number of acres in Southern Illinoisthat still have corn on them and, unfortunately, willnot have herbicide applied.

Last spring we were challenged in providing effec-tive burn-down recommendations, but more goodnews in 2010 is the availability of a few new herbi-cides that can be used as a burn-down alternative forno-till corn and soybean acres that require a burn-down application ahead of planting.

Farming is not what it was five years ago, but yourlocal FS crop specialist can help you understand thechanges. It should make for an interesting and excit-ing 2010 growing season. As you continue to harvest,remember: Be safe; there is no race to see who fin-ishes first.

Jeff Bunting is GROWMARK’s seed corn product man-ager. His e-mail address is [email protected].

Jeff Bunting

Page 8: FarmWeek edition November 16 2009

YOUNG LEADERS

FarmWeek Page 8 Monday, November 9, 2009

Illinois Farm Bureau’s Young Leader Achievement Awardrecognizes extraordinary accomplishments in farming and lead-ership. This year’s award winner will be honored at IFB’sannual meeting Dec. 5-8 in Chicago.

Participants are judged on their management, innovation, andself-initiative, as displayed through their farming operations.Leadership ability and involvement and participation in countyFarm Bureau or other civic, service, or community organizationsalso are major factors in selecting the top young producer.

The first place winner receives 150 hours of use of anytwo-wheel-drive Case IH tractor, $1,000 cash from IFB, aone year membership in the Illinois Corn Growers Association(ICGA), and expense-paid trips to the American FarmBureau Federation annual meeting in Seattle, the GROW-MARK annual meeting in Chicago, and the Young LeaderState Conference in Springfield.

The first runner-up will receive a $600 Visa gift card fromFarm Credit Services/1st Farm Credit Services and a oneyear ICGA membership. The two honorable mention finalistseach will receive $250 cash courtesy of Country Financial anda one year ICGA membership.

Four producers are finalists in this year’s competition. Here,they share their thoughts on maintaining the tradition of thefamily farm and planning for the future.

Leon and Andrea AdamsBonnie, Jefferson County

Leon and Andrea Adams grow a variety of cropsand both work off the farm.

Leon and his father, Kirby, manage Adams FarmsInc. They grow corn, seed wheat, commercial wheat,parent soybean seed, and commercial soybeans onabout 4,200 acres in Jefferson County. Leon alsomanages a Pioneer seed dealership.

Andrea, a graduate of the Rend Lake College cos-metology department, operates her own salon in Mt.Vernon.

“It seems like we’re always running 100 differentdirections. But diversity is a good thing,” Leon said.“You don’t want all your eggs in one basket.”

The Adames capture some additional premiumgrowing seed crops. Leon also believes the use ofimproved crop genetics and better field managementwill boost yields and profitability.

“We’re continually seeing increased productionwith the adoption of new genetics,” said Leon, whoalso believes in micro-managing crop fields and keep-ing soil tests up to date. “It (intensively managingeach acre) will cost you money up front, but it willmake you money or save you money in other areas.”

Leon believes marketing is among the top chal-lenges facing farmers.

“I think we’ll continue to see large movements inprices,” he said. On the input side, “You’ve really gotto know your cost of production,” he maintained.

Leon, who was the Illinois FFA state secretary in2001/02, also helps organize a farm safety day campeach year for local school children.

The couple welcomed their first child, MadalynnSaRae, on May 18.

Josh and Jody CurryAlpha, Henry County

Josh and Jody Curry produce corn, soybeans, andwheat on a multi-generational farm. They also operatea farrow-to-finish hog operation and a crossbred cow-calf herd.

Jody works off the farm at a local bank and also is achild birth educator and Lamaze instructor. They havea son (Owen) and two daughters (Carsen and Hadaly).

“Our goals are to be profitable, provide a satisfyinglifestyle for our family, and to provide an opportunityfor the next generation to get to farm,” Josh said.

Josh said it is challenging at times to be a youngfarmer, but he believes there will be future opportuni-ties to expand the operation.

“There are a lot of retiring farmers out there sothere will be some opportunities to purchase or leaseland,” he said.

The Currys also plan to stay in the livestock busi-ness despite recent struggles.

“The biggest challenge right now is the continuedred ink in the hog industry,” Josh said. “But we stillhave a positive outlook that things will change.”

The Currys closely monitor animal nutrition andproduction records to increase such things as averagedaily gain and overall health of their swine herd.

On the crop side, they use basis contracts, hedge-to-arrive contracts, cash sale contracts, specific optioncontracts, averaging contracts, premium offer con-tracts, and crop insurance to help ensure crops aremarketed at a profit.

Josh joined Young Leaders when he was 18 and said“it’s a great way to meet other farmers.”

Lori EngelGalesburg, Knox County

Lori Engel and her husband, Kevin, run a regis-tered Angus cattle and hay operation. Kevin alsoworks off the farm at Birkey’s Farm Store in Gales-burg.

Lori grew up on a grain and cattle farm and origi-nally went to college to study to be a veterinarian.

“I grew up with cattle and always knew I wanted toget back into it,” said Lori, who decided to enter theproduction side of the business after her experienceon a meat judging team.

Engel seeks to build a genetically strong cow/calfoperation with balanced expected progeny differ-ences by incorporating the use of artificial insemina-tion. Bulls are used to improve growth and carcasstraits while the heifers are retained as replacements.

The majority of feed for the herd consists of for-age so Engel was not affected as much by highergrain prices in recent years as some of her counter-parts.

But the wet weather this year did reduce hay pro-duction, which Engel uses for her herd and sells therest off the farm.

“This year we made 1,000 fewer bales than lastyear,” she said. “Each bale weighs about 60 poundsso that’s about three tons less than last year.”

In the future Engel looks forward to her children(Dalton, Katelynn, and Kyle) getting involved in thecattle operation through 4-H. She also hopes to addmore cows to the herd and buy more pasture ground.

Engel got involved in Young Leaders about fouryears ago and said “it’s a great way to meet other peo-ple with interests like ours.”

Joe ZumwaltWarsaw, Hancock County

Joe Zumwalt grows corn and soybeans on 1,010acres, he is a part owner of Hancock Land Co., andhe does excavation work on the side.

Zumwalt also helps care for Charolais cattle andArabian horses on his family’s farm.

“I knew I always wanted to farm,” said Zumwalt,who farms land that was acquired by his family backin the 1930s.

He believes efficiency and management are thekeys to surviving difficult economic times.

“I think people have to get the most out of each acre,”he said. “It’s not just about how many acres you cover.”

Zumwalt also believes farmers must manage theirinputs more carefully due to wild fluctuations in theprice of everything from fertilizer to fuel.

“The old saying is ‘The money is made in market-ing’,” he said. “But you need to be a pretty smartentrepreneur to get your inputs priced” at levels thatallow for profitability.

Zumwalt has been involved with Young Leaders for15 years. He was the winner of the 2008 Young LeaderState Discussion Meet, and he recently completed afour-year term on the Young Leader State Committee.

“I’ve met a lot of wonderful people and had somegreat opportunities” through Young Leaders, he said.

He also had a memorable year in 2008 as 860 ofhis 1,010 acres were flooded when a levee brokealong the Mississippi River and covered his fieldswith water anywhere from 10 to 30 feet deep. Thelevee broke on June 18, 2008, and his farm wasn’tcompletely dry until after Christmas that year.

“It was a difficult situation, but it was somethingour community was able to overcome,” Zumwalt said.“I’m still farming and have plans to expand in thefuture.” –- Daniel Grant

ACHIEVEMENT IN AGRICULTUREThe 2009 Young Leader Achievement Award finalists

Page 9: FarmWeek edition November 16 2009

MARKETS

FarmWeek Page 9 Monday, November 16, 2009

Record yieldforecasts could weigh on marketsBY DANIEL GRANTFarmWeek

Harvest may be laggingbehind this fall, but it appar-ently hasn’t affected the sizeof the crops.

USDA in its Novembercrop report last week estimat-ed U.S. production this yearwill total 12.9 billion bushelsof corn (up 7 percent fromlast year) and a record 3.32billion bushels of beans (up12 percent from last year).

The large crops are theresult of record-high nationalyields estimated at 162.9bushels per acre for corn and43.3 bushels for beans.

Illinois yield estimates (175bushels per acre for corn and45 bushels for beans) are wellabove the national averages,but those yields would bedown 4 bushels for corn and2 bushels for beans comparedto last year.

“The adjustments byUSDA should be supportiveof corn but a little bearish onthe soybean and wheat front,”said Gavin Maguire, analystwith EHedger, during a tele-conference hosted by theCME Group.

Maguire noted the cornyield projection actuallydeclined by 1.3 bushels com-pared to last month.

“I think the increase of thenational soybean yield has

been coming for some time.”A record-large U.S. soy

crop combined with thepotential for an estimated 1billion-plus-bushel increase inSouth American productioncould weigh on the market.

“We’ve raised the bar (ofsupply in the U.S.) and nowwe have the prospect of alarge (soy) crop in Argentinaand Brazil,” said David High-tower of the HightowerReport. “If we don’t have aweather threat (in SouthAmerica), you have to assumeit will have a big negativeimpact on prices.”

Maguire believes soybeanprices early next year coulddip below $8 per bushel.USDA forecast bean prices toaverage between $8.20 and$10.20 per bushel.

Meanwhile, wheat pricesare expected to sputter asUSDA raised world produc-tion estimates and loweredU.S. exports. Ending stocks ofwheat were projected at a 10-year high of 885 millionbushels.

“As long as world wheatsupplies are rising and notfalling, the market will havetrouble sustaining any long-term rallies,” Maguire said.

Corn stocks, on the otherhand, have declined in thepast eight months from 2.1billion bushels to this month’sestimate of 1.625 billionbushels.

Soybean ending stockswere estimated at 270 millionbushels.

“The corn number is a lit-tle friendly,” Maguire said.

And corn supplies couldget a little tighter dependingon the remainder of harvest.

“This report is kind ofpremature (due to the lateharvest),” Hightower added.“Variability is still out thereand it’s very significant.”

USDA will issue its finalproduction estimates for theseason in January.

Wal-Mart growing farmer-suppliersBY KAY SHIPMANFarmWeek

Wal-Mart shoppers arefinding more Illinois fruitsand vegetables on storeshelves and are supportingIllinois agriculture with theirpurchases, according to Wal-Mart executives, farmer-sup-pliers, and the state agricul-

ture director. “We get shelf space in

Wal-Marts. That’s tremen-dous in terms of economicbenefits for Illinois,” said Illi-nois Ag Director Tom Jen-nings.

Last week, Jennings joinedWal-Mart executives andthree Illinois growers to high-light Wal-Mart Stores Inc.’sefforts to buy and sell Illi-nois-grown produce andproducts.

Over the last two years,Wal-Mart has increased by 50percent the number of localfarmer-suppliers nationwide.

Those Wal-Mart purchaseshelped local farmers, and insome cases, allowed them toexpand their operations, thefarmers said.

Being a Wal-Mart supplierover the past 15 years helpedFrey Farms Produce, based inWayne County, grow from asmall family farm into a

Illinois Agriculture Director Tom Jennings, at lectern, discusses Wal-Mart’s locally grown program during anews conference in a Springfield Wal-Mart last week. Looking on from left are growers Ted Maddox of Mad-dox Farms, Mark Meyer of Meyer Produce, and Sarah Frey of Frey Farms Produce; Zelina Bazan, Wal-Martlocal sourcing buyer for Illinois; and John Bisio, Wal-Mart senior manager of public affairs and governmentrelations in Illinois. (Photo courtesy of Wal-Mart)

FarmWeekNow.comHear Wal-Mar t of f ic ialsexplain why they are pro-moting Illinois-grown pro-d u c e a t t h e i r s t o r e s a tFarmWeekNow.com.

‘ T h e a d j u s t -ments by USDAshou ld be sup-por t i ve o f co r nbut a little bear-i sh on the soy-bean and wheatfront.’

— Gavin Maguireanalyst with EHedger

national organization, saidSarah Frey Talley, companypresident.

“Jobs in Southern Illinois,particularly in Wayne County,are hard to come by,” Talleysaid.

As its business with Wal-Mart increased, Frey Farmshired more employees, includ-ing seasonal workers, and cre-ated more positions, sheadded.

Doing business with Wal-Mart also has helped smallerfarm operations, said MarkMeyer of Meyer Produce,Manito.

“With Wal-Mart doing itslocal produce initiative, it ishelping smaller guys whomaybe wouldn’t stay in busi-ness sustain themselves, and atthe same time supply goodfruits and vegetables to thestores,” Meyer said.

Working with diverse Illi-nois growers also helps Wal-

Mart when, for example,weather hampers harvest insome areas but not others,added Ted Maddox of MaddoxSweet Corn Farm, Warrens-burg.

Last week, Wal-Mart execu-tives discussed opportunitiesand issues with growers, Uni-versity of Illinois Extensionspecialists, and representativesof ag organizations.

“Our hope is to continue topromote locally grown in Illi-nois and to engage prospectiveproducers and help themunderstand what it takes to dobusiness with Wal-Mart,” saidJohn Bisio, director of publicaffairs and government rela-tions for Wal-Mart in Illinois.

“Illinois has so manyopportunities to expand thislocally grown food system,”Jennings said. “It all relates tojobs and anything we can do togrow this effort — that’s whatwe’re all about.”

Page 10: FarmWeek edition November 16 2009

POLICY

FarmWeek Page 10 Monday, November 16, 2009

RC proposes IDOA animal oversight, group effortsBY MARTIN ROSSFarmWeek

The Illinois Farm Bureau Resolu-tions Committee (RC) seeks to bol-ster health and educational resourcesand policy protections for an already-beleaguered livestock industry.

Amid concerns about state ballotinitiatives and local efforts aimed atrestricting livestock activities, RC pro-posals support granting IllinoisDepartment of Agriculture jurisdictionover care of all livestock and compan-ion animals statewide.

IFB producer delegates will reviewpolicy proposals at the organization’sDec. 5-8 annual meeting in Chicago.

The RC proposal is aimed at pro-viding strong, ag-based guidance in theface of pressure from activist groupssuch as the Humane Society of theUnited States (HSUS).

RC Ag Policy-National Issues Sub-committee Chairman Kent Mellendorfnoted the prospective negative impact

of California’s recently passed, HSUS-backed Proposition 2 on West Coastegg producers.

Ohio voters by a nearly two-to-onemargin recently supported establish-ment of a new Ohio Farm Bureau-backed Livestock Care StandardsBoard that will recommend guidelinesfor the care of the state’s livestock.

Oklahoma and Michigan havepassed legislation prohibiting localgovernments from enacting livestockrules or ordinances that are morerestrictive than state ag regulations.

The RC also proposed commoditygroups pool resources to educate con-sumers on the best management prac-tices producers employ, especiallythose in livestock production.

As activists mobilize to restrictproduction practices, livestock, dairy,and mutually reliant crop-producinggroups are recognizing the value ofpooling resources to “target one areaat a time vs. each one trying to do a

little bit on its own,” Mellendorfsaid.

For example, the Ohio Corn Grow-ers Association helped lobby for theOhio Livestock Care Standards Board.

Concerns about H1N1, sometimesmislabeled “swine flu,” have height-ened consumer education efforts and afocus on animal disease control. TheRC supports maintaining a “modern,biosecure” disease research center.

Since the 1950s, exotic animal dis-ease research has been conducted atPlum Island Animal Disease Center, an840-acre island off the coast of NewYork’s Long Island. A proposedNational Bio and Agri-Defense Facility(NBAF) would have an even higherbiosecurity rating than Plum Island,enabling it to study diseases for whichthere is no vaccine.

Manhattan, Kan., is a prime siteunder consideration for an NBAF, andthe RC was concerned about security ifdisease research is moved inland.

Synchronize FSA,crop insurance dates

The Illinois Farm Bureau ResolutionsCommittee (RC) recommends givingproducers more time to consider theirspring crop insurance protection options.

The RC has proposed policy requir-ing that individual county final yieldaverages needed for revenue-basedgroup risk income protection (GRIP)and yield-based group risk plan (GRP)policies be released no later than onemonth prior to the March 15 federalcrop insurance sales closing date.

GRP and GRIP use county —rather than individual —yields as thebasis for crop or price loss protection.

While normally final Illinois countyyield estimates needed to gauge the pre-vious season’s GRIP performance areannounced by mid-February, statewidedata were not available until early Marchthis season. Growers in other statesobjected to Illinois’ relatively early releasedate, and USDA “unified” nationwiderelease dates, IFB risk management spe-cialist Doug Yoder reported.

The RC proposal seeks a Februaryrelease date for all states.

“At least 30 days in advance wouldgive individual farmers a little moretime to make up their minds aboutwhat kind of insurance they want orhow much they want to carry,” arguedRC Ag Policy-National Issues Subcom-mittee Chairman Kent Mellendorf.

The RC also proposed requiringautomatic extension of USDA RiskManagement Agency (RMA) acreagereporting deadlines in the event FarmService Agency (FSA) crop certifica-tion deadlines are extended.

Existing IFB policy recommendscoordinating RMA/FSA reportingdates and deadlines to offer producers“one-stop shopping,” rather than a“double submitting” of data, Yodersaid. — Martin Ross

IDOA trade missionsgarner livestock sales

Trade missions led by the IllinoisDepartment of Agriculture (IDOA)over the past three months have gener-ated nearly $500,000 in business forthe state’s livestock industry.

Most recently, a dairy operation in theMexican state of Aquascalientes accepted226 Holstein cattle from a West-CentralIllinois farm. The sale stemmed from alate September buyer’s mission in con-junction with IDOA’s dairy industry tour.

Separate Panamanian and Domini-can swine missions in August resultedin pork producers from both countriesbuying 76 head of breeding stock.

“These sales could not have come at abetter time because our livestock industryis suffering through an economic crisis,”Agriculture Director Tom Jennings said.

Eight IDOA trade missions this yearfocused on livestock-related markets,bringing 34 buyers from seven countriesto Illinois and generating sales exceeding$1 million, including pending sales. Jen-nings noted every dollar spent on mar-keting has generated $174 in sales.

IDOA will host Costa Rican swinebuyers this month and Mexican swinebuyers in December.

Page 11: FarmWeek edition November 16 2009

IFB IN ACTION

FarmWeek Page 11 Monday, November 16, 2009

IAA Foundation caps successful summer, fall fundraisers

IAA Foundation offers scholarships to IFB families

Illinois Farm Bureau members and their children may applyfor college scholarships offered by the IAA Foundation. Up to57 scholarships, ranging from $1,000 to $2,000 per year, will beawarded.

“We are pleased to once again have the opportunity to assistFarm Bureau families with the ever-growing expenses of col-lege.” said Susan Moore, IAA Foundation director. “It is a greatprivilege to support our next generation of leaders and encour-age continuing education in agricultural fields.”

Guidelines, applications, and an activities template will beavailable at the Foundation website {www.iaafoundation.org}starting Dec. 1.

Questions may be directed to the IAA Foundation office at309-557-2230, or by sending an e-mail to [email protected]. Completed applications must be postmarked onor before Feb. 1, 2010.

The Walter and Martha Wills scholarship is available againthis year to students majoring in an agriculture program atSouthern Illinois University in Carbondale and whose parentslive on and operate a farm.

Three Robert Rouse scholarships are available for Lake Coun-ty students who are studying agriculture or nursing. The WilliamKuhfuss scholarship is available for a student studying agricul-ture at an Illinois post-secondary institution.

The Greg Carney scholarship is available to a University ofIllinois student who is actively involved in production agricul-ture and is a current or former 4-H member. The Dale Butzscholarship is for a student involved in production agricultureattending any educational institution.

One Heartland NAMA (National Agri-Marketing Associa-tion) Steven A. Hammerschmidt memorial scholarship will beawarded to a junior- or senior-level college student majoring inagriculture or agribusiness with an interest in agriculture market-ing, sales, or communications at an Illinois college or university.

A Case-New Holland scholarship is available for studentsstudying agricultural engineering, biological systems engineering,or ag mechanized/systems management and who reside in sevenCentral Illinois counties.

An additional six scholarships may be used at any accrediteduniversity, college, or community college in the nation for thestudy of agriculture, agribusiness, or an ag-related major.

Twelve additional scholarships of $2,000 each are funded byPrairie Farms Dairy (PFD) as a tribute to former PFD execu-tives Fletcher Gourley, Leonard Southwell, and Roger Capps.The scholarships are for children of PFD employees and pro-ducers who sell milk to PFD.

A total of 30 Dorothy and Wilhelmine Ratermann scholar-ships are available to residents of Southern Illinois counties.The scholarships may be applied toward any major at anyaccredited university, college, or community college in thenation.

All applicants must be high school seniors accepted forenrollment or students already enrolled at an accredited college,university, or community college.

Scholarships are awarded for exceptional academic ability,leadership, and financial need. Previous winners of an IAAFoundation scholarship are eligible to apply again.

For more information, contact your county Farm Bureau, theIAA Foundation at 309-557-2230, or e-mail [email protected].

BY KAY SHIPMANFarmWeek

The IAA Foundation nettedmore than $83,000 throughfundraising activities this sum-mer and is looking ahead toseveral fundraising activities atthe Illinois Farm Bureau annu-al meeting in Chicago.

“I am grateful for the sup-port shown to the IAA Foun-dation through participation inour fundraising events, and ampleased with our financialresults,” said Susan Moore,IAA Foundation director.

“Every dollar earned is help-

ing more students and teachersunderstand where our food,fiber, and fuels come from andthe important role agricultureplays in our daily lives,” Mooresaid. All event proceeds sup-port the Illinois Agriculture inthe Classroom (IAITC) pro-gram.

On July 18, 323 participantsjoined the IAA Foundation atthe “Pull for Agriculture Edu-cation.” The event was a sport-ing clays and trap shoot compe-tition held at the World Shoot-ing and Recreation Complex,Sparta. It netted nearly $8,000.

On July 30, 210 golfers par-ticipated in the IAITC GolfOuting at the Elks CountryClub & Wolf Creek Golf Club,Pontiac. The golf outing nettedmore than $42,500.

On Sept. 8-10, 50 cyclistspedaled in the IAITC Bike Ridethrough Clark, Coles, Cumber-land, Douglas, Edgar, Effing-ham, Jasper, Moultrie, and Shel-by counties. They netted morethan $32,500 and visited 25schools, reaching more than2,500 students with lessons onagriculture and bicycle safety.

Fundraising activities atannual meeting will start Dec. 5with an ice cream social spon-sored by Prairie Farms Dairyfrom 3:15 to 4:15 p.m. in theGrand Ballroom. The live auc-tion will start at 3:45 p.m. in theGrand Ballroom.

The silent auction will startat 1 p.m. Dec. 5 and concludeat 4 p.m. Dec. 7 in the Grand Broom. A country store high-lighting several new productswill operate during the samehours.

In addition, teams will com-pete in the sixth annual triviacontest, starting at 8:15 p.m.

Dec. 6 in the hotel’s CrystalRooms A, B, and C. Teams willpit their knowledge against eachother to raise money for thefoundation. Registration is lim-ited to the first 45 teams.

Teams may compete in oneof two team divisions: FarmBureau leader teams of five ormore Farm Bureau leaders and

volunteers and another divisionfor teams of staff and corpo-rate members. A prize also willbe awarded for best team themefor team costumes, table deco-rations, etc.

For more information, con-tact the IAA Foundation at 309-557-2230, or go online to{www.iaafoundation.org}.

TAKING A BREAK

Schuyler County Farm Bureau made sever-al stops in Schuyler County recently for a“Take a Break” safety promotion. The

farmers and their employees are under a great deal of stress withthe delay in harvest. Pictured with Farm Bureau manager KellyWestlake is Carl Vancil of Rushville. Vancil and several oth-er Schuyler County farmers enjoyed a quick snack and drinkcompliments of the Farm Bureau. (Photo courtesy of SchuylerCounty Farm Bureau)

Page 12: FarmWeek edition November 16 2009

FROM THE COUNTIES

FarmWeek Page 12 Monday, November 16, 2009

GRUNDY — Theannual meeting will

begin with a silent auction at5 p.m. Thursday, Jan. 14, atthe Morris Country Club,Morris. Dinner will be at 6p.m. Tickets are $15 and willbe available Dec. 8. Moreinformation will follow in thecounty Farm Bureau newslet-ter “Field Notes.” Call theFarm Bureau office at 815-942-6400 for more informa-tion.

KNOX — Steve John-son, Iowa State Uni-

versity farm and ag businessmanagement specialist, will bethe speaker at a marketingseminar at 6:30 p.m. Monday,Nov. 23, at the Knox AgriCenter. Riverland FS, Tomp-kins State Bank, AbingdonBanking Center, WinshipFarm Management, Northand Co., Monsanto, and War-ren-Henderson and KnoxCounty Farm Bureaus willsponsor the program. Callthe Farm Bureau office at342-2036 for reservations ormore information.

LASALLE — Theannual meeting will be

at 6:30 p.m. Tuesday, Dec. 1,at Pitstick’s, Ottawa. Dinner

will be served. Cost is $7.50.Call the Farm Bureau office at815-433-0371 for reservationsor more information.

MCDONOUGH —Steve Johnson, Iowa

State University farm and agbusiness management special-ist, will be the speaker at amarketing seminar at 11:30a.m. Monday, Nov. 23, at theVineyard Community Church,Macomb. Lunch will beserved. There is no charge formembers and $10 for non-members. Call the FarmBureau office at 837-3350 byWednesday for reservationsor more information.

MONTGOMERY —The Prime Timers

will meet at noon Wednesdayfor a Thanksgiving dinner.Cost is $8. Wanda Cook, alsoknown as Dora Merriweather,will provide the entertainmentfor a free-will offering. Callthe Farm Bureau office at217-532-6171 for more infor-mation.

• The Prime Timers willsponsor a bus trip Wednesday,Dec. 2, to Our Lady of theSnows Shrine, Belleville. Thebus will leave at 3:05 p.m.from Nokomis downtown

park, 3:30 p.m. from the FarmBureau office, and 3:45 p.m.from the former Kroger park-ing lot, Litchfield. The groupwill visit the gift shop, have abuffet meal, hear the St. LouisUniversity mass choir, and seea display of lights. Cost is$33. Call the Farm Bureauoffice at 217-532-6171 formore information.

PEORIA — The cit-rus and nut order

deadline is Monday, Nov. 23.Florida Farm Bureauoranges, grapefruit, and tan-gelos are available in 20- and40-pound boxes. A varietyof Terry Lynn nut productsare available in one-poundpackages. Delivery will beon Wednesday, Dec. 16, tothe Farm Bureau office.

Call the Farm Bureau officefor more information.

SANGAMON — TheWomen’s Committee

will sponsor its annual lun-cheon and seminar at 10 a.m.Thursday at the NorthfieldCenter, Springfield. BobBunn, Bunn-O-Matic, andDawn Eck, who will demon-strate quilting a holiday orna-ment, will be the presenters.Cost is $15 for members and$25 for non-members. Callthe Farm Bureau office at753-5200 for reservations ormore information.

VERMILION — FarmBureau will sponsor a

defensive driving program formembers who are 55 andover. The program will befrom 10 a.m. to 3 p.m. Tues-

day and Wednesday, Dec. 1-2,at the Farm Bureau auditori-um. Participants must attendboth days to receive a dis-count on their auto insurance.Cost is $35, which includeslunch. Call the Farm Bureauat 217-442-8713 for reserva-tions or more information.

WHITE — KevinRund, senior director

of local government, will bethe speaker at an “on theroad” seminar at 7 p.m. Tues-day, Nov. 24, at the FarmBureau office. Topics willinclude universal carrier regis-tration, weight limits, andcommercial driver’s licenserequirements. Call the FarmBureau office at 618-382-8512for reservations or moreinformation.

BY RYAN KLASSYNearly 40 farm families, agricultural busi-

nesses, and individual donors have raised morethan $10,000 in the Kane County FarmBureau’s Harvest for All campaign to help

restock theshelves oflocal foodpantries.

ThroughHarvest for All, producers donate a portion ofthe proceeds from this year’s harvest to a KaneCounty food pantry of their choice. Non-farm-ers joined in the effort with cash donations.

In addition to making pledge forms availableat the Farm Bureau office and on its website,Kane County Farm Bureau staff and volunteersdistributed maps that designate farm locationsof Harvest for All participants and pledgeforms to local grain elevators to give farmers achance to sign up for the program as their graincrosses the scales.

Thus far, the value of all cash contributionsand crops contributed or pledged is well over$10,000 and includes the proceeds from an esti-

mated 1,100 bushels of corn, 300 bushels ofsoybeans, 200 bushels of wheat, and an acre ofhay.

Donations also included vegetables plants fora food pantry community garden, fresh eggs,vanloads of fresh vegetables, and $1,700 incash. Pledges and donations have been desig-nated to benefit a dozen local food pantries andone regional food bank.

The program has been named a nationalaward winner in the American Farm BureauFederation’s (AFBF) “County Activities ofExcellence” recognition program. Volunteerswill share the program’s success with otherFarm Bureau leaders at the AFBF annual meet-ing in Seattle, Wash., in January.

For more information about the program, goonline to {www.kanecfb.com} and click on theHarvest for All link at the top of the page, orcall the Kane County Farm Bureau at 630-584-8660.

Ryan Klassy is the information director for the KaneCounty Farm Bureau. He can be reached at 630-584-8660.

The harvest season bringshunger relief in Kane County

Chris Collins of Elburn, who donated the proceeds from 100 bushels of his corn harvest to the Kane CountyHarvest for All program, unloads corn from a grain cart into a waiting semi. (Photo by Steve Arnold, man-ager of Kane County Farm Bureau)

Page 13: FarmWeek edition November 16 2009

MARKETS

FarmWeek Page 13 Monday, November 16, 2009

BNSF purchase

Grower: Big money could mean good things for ag railBY MARTIN ROSSFarmWeek

Recent news of billionaireinvestor Warren Buffett’s planto buy BNSF, one of thenation’s top rail carriers, hasgenerated industry specula-tion — as well as some skep-ticism.

But Southern Illinois soy-bean grower C.W. Gaffnersuggests an infusion of high-profile capital may be justwhat is needed for the railindustry and ag transportationat large.

Gaffner, a Greenvillegrain/dairy producer and Illi-nois Soybean Associationstate director, viewed the

favors moving more long-distance freight from thenation’s congested high-

ways to the railroads.He also noted that while the

Mississippi barge system isslated to receive federal fundsfor navigational improve-ments, rail infrastructure

improvements are almostwholly reliant on privateinvestment.

BNSF is the world’s top“intermodal” transporter oftruck trailers and containercargo — one BNSF inter-modal train reportedly haulsthe equivalent of 280 semi-loads.

Buffett, a key BNSF share-holder whose firm, BerkshireHathaway, has bid $34 billionfor the carrier’s remainingstock, predicted “we’ll havemore people moving moregoods 10, 20, 30 years fromnow.”

“I’m sure glad Buffett isdoing this,” Gaffner said.“I’m concerned about it a lit-tle bit, but, hey, somebody hasto step in.”

Upon its impendingacquisition of BNSF, Berk-shire Hathaway reportedlywill sell its 2 percent, 9.5million-share stake in UnionPacific, as well as its 1.9 mil-lion shares in NorfolkSouthern.

Senate Finance ChairmanMax Baucus (D-Mont.) metrecently with Buffett and stat-ed he will keep “a close eye”on BNSF to ensure “a fairshake” for producers.

changing commodity distribu-tion system firsthand during arecent soybean and graintransport conference in NewOrleans.

Faced with at-dock delaysthat can cost thousands perday, shippers and handlers atthe Port of New Orleansseek speed — “fast unload-ing and fast loading,” herelated.

At the same time, industryanalysts anticipate steadygrowth in containerized ship-ping traffic, from 96 million“boxes” in 2007 to perhaps243 million containers mov-ing annually through U.S.ports by 2024.

A combination of high-er freight volume and thedesire for more rapid turn-

around underlines theneed for a better railroadsystem, Gaffner main-tained. He acknowledgedthat rail is “just one pieceof the puzzle,” but he

‘Hey, somebody has to step in.’

— C.W. GaffnerIllinois Soybean Association

USDAplans newpork buys

Ag Secretary Tom Vil-sack last week announcedUSDA will purchase asmuch as $50 million worthof additional pork prod-ucts.

The pork purchases willbe used for various federalfood programs, includingthe school lunch andschool breakfast programs,and are intended to helpstruggling pork producerswho have been mired in atwo-year economic slump.

A number of farmgroups, including theNational Pork ProducersCouncil (NPPC), IllinoisPork Producers Associa-tion, and Illinois FarmBureau, requested the addi-tional purchases.

U.S. pork producerssince September 2007 havelost $5.4 billion, accordingto NPPC.

The pork buy is the thirdsupplemental purchase thisyear — USDA bought $25million of pork in Marchand $30 million worth inSeptember.

Page 14: FarmWeek edition November 16 2009

PROFITABILITY

FarmWeek Page 14 Monday, November 16, 2009

Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $27.00-$38.03 $34.1240 lbs. n/a n/a50 lbs. n/a n/aReceipts This Week Last Week

17,987 28,595*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 950 Last week 844 Last year 631Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $99; 110-130 lbs.,$90--$93. Good and Choice 1-2: 60-90 lbs., $110. Slaughter Ewes: Utility andGood 1-3: $29-$32. Cull and Utility 1-2: $29.

Lamb prices

Eastern Corn Belt direct hogs (plant delivered)(Prices $ per hundredweight)

This week Prev. week ChangeCarcass $51.92 $52.08 -0.16Live $38.42 $38.54 -0.12

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn11-05-09 59.9 17.2 26.910-29-09 65.9 12.0 25.9Last year 36.1 13.0 27.3Season total 283.1 377.8 324.5Previous season total 232.5 551.9 305.4USDA projected total 1325 875 2100Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

(Thursday’s price)This week Prv. week Change

Steers 84.32 86.78 -2.46Heifers 84.40 87.00 -2.60

USDA five-state area slaughter cattle price

This is a composite price of feeder cattle transactions in 27 states.(Prices $ per hundredweight)

This week Prev. week Change93.57 93.21 0.36

CME feeder cattle index — 600-800 Lbs.

Managing biodiesel blended fuel in cold weatherBY BRIGETTE HARLAN

Leaves are falling, there is achill in the air, and the localhigh school football teams aredominating the news. These

are pleasantindicatorsthat autumnis upon us.

So far, thisyear has beenparticularlydamp andcold, whichmeans extracare must be

taken with biodiesel blendedfuels to avoid unexpectedoperability issues.

Much of the diesel fuel in

the State of Illinois is an 11percent biodiesel blend (B11).Like conventional diesel fuel,biodiesel blends are suscepti-ble to gelling when the tem-perature drops.

We see a wide range ofcloud points (the temperatureat which crystal formationbegins) in Midwest fuels, butthe typical B11 blend has acloud point of 10-12 degreesFahrenheit.

Historically, No. 2 dieselfuel has been blended withNo. 1 diesel fuel to help dilutethe wax concentration, buttoday, No. 1 diesel fuel tendsto be expensive and difficult tosource. Now the treatment of

choice is using cold flowimprover (CFI) additives suchas FS SURE-FLO. Cold flowimprovers work to lower afuel’s cold filter plug point bymodifying the size and shapeof wax crystals, allowing thefuel to flow freely through avehicle’s fuel system.

When treating biodieselblends, we recommend using a2X treat rate opposed to a sin-gle rate when treating conven-tional diesel fuel.

Other common cold weath-er operability issues can becaused by having water in thefuel. When possible, keep stor-age, implement, and vehicletanks full. This leaves little

room for condensation in theair space above the fuel asambient air temperatureschange.

Because biodiesel is slightlymore susceptible to water con-tamination than diesel fuel, werecommend blending it with abase fuel such as FS DieselexGold that contains a moisturecontrol additive.

Partnering FS DieselexGold with SURE-FLO (con-taining deicer chemistry) pro-vides additional moisture pro-tection.

In a perfect world, storedfuel, including fuel that will sitmore than eight hoursovernight in a vehicle or

implement tank, should bekept at 10 degrees above thefuel’s cloud point.

When and if possible, payattention to local forecasts andkeep vehicles in a garage orother storage area out of thedirect elements.

Your FS energy salespersonis an excellent source of addi-tional information and canassist you in developing a planfor operating with biodieselblended fuel this autumn andthroughout the year.

Brigette Harlan is GROW-MARK’s renewable fuels productmanager. Her e-mail address [email protected].

Brigette Harlan

Is weak dollar a good thing for U.S. agriculture?BY DANIEL GRANTFarmWeek

Some farmers may want tobe careful what they wish forwhen it comes to the value ofthe U.S. dollar.

A weak dollar has beencredited with boosting sales ofU.S. ag products overseas andthereby increasing demandand prices for grain.

“Weakness of the dollardoes tend to boost demand for(U.S.) grain,” said Dale Durch-holz, AgriVisor market ana-lyst. “The weak dollar andinflationary fear also have peo-ple in the investment commu-nity looking at commodities asan asset to own” which could

put a floor under prices, hesaid.

Corn and wheat prices lastweek were cheap relative togold and “slightly cheap” rela-tive to crude oil, according tothe analyst.

So is the fact that the valueof the dollar declined 4.9 per-cent from Sept. 1 through lastweek and recently dipped nearhistoric lows a good thing foragriculture?

Not necessarily, accordingto Durchholz and DannyKlinefelter, Texas A & MExtension economist.

A weak dollar also drives upthe cost of imports, makesconsumer goods more expen-

sive in the U.S., and could leadto higher interest rates.

“A weaker dollar doesn’tnecessarily help us (in agricul-ture),” said Klinefelter, whonoted that nearly half of U.S.debt is held by foreigninvestors who could pressure

the federal government toraise interest rates.

Farmers also are affected bya weak dollar in the form ofhigher input costs, Klinefeltersaid.

The U.S. currently importsmore than half of its nitrogen,

about 90 percent of the potashused on farms, and more than60 percent of its oil.

“The value of the dollar is abarometer of the basic eco-nomic health of your coun-try,” Durchholz said. There-fore, “cheering on a weak dol-lar has negative economicimplications. It elevates thecost of goods” entering thecountry, he maintained.

“We need money coming in(from foreign investors) tofund the deficit and industry.So in time a weak dollarbecomes counterproductive,”Durchholz said.

Crude oil prices last weeksurpassed $80 per barreldespite the fact that U.S. crudestocks increased by 1.2 millionbarrels, according to theAmerican Petroleum Institute.

Meanwhile, the U.S. econo-my still is on shaky ground.The U.S. unemployment ratelast month hit 10.2 percent,which reportedly is the highestsince 1983.

The U.S. dollar index is a measure of the U.S. dollar relative to a basketof foreign currencies. It was started in March 1973 with a value of 100.Since that time it has traded as high as the mid-160s and as low as70.69 in 2008. This graphic shows the dollar’s decline since summer.

Page 15: FarmWeek edition November 16 2009

PROFITABILITY

FarmWeek Page 15 Monday, November 16, 2009

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

Bloomington, Illinois

AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

AgriVisor LLC is not liable for any damageswhich anyone may sustain by reason of inac-curacy or inadequacy of information providedherein, any error of judgment involving any pro-jections, recommendations, or advice or anyother act of omission.

CASH STRATEGISTCorn Strategy

�2009 crop: Prices con-tinue to move upward, but ral-lies are being “capped” by anactive harvest. Decemberfutures appear to have limiteddownside risk below $3.50.Wait for strength before mak-ing a sale, even to price cornfor harvest delivery. IfDecember futures rally to$4.25, boost sales to 50 per-cent. Check the Cash StrategistHotline frequently for changes.We might increase sales evenmore if that is hit. Because ofthe large futures carry, ahedge-to-arrive contract forApril through June deliverymay be the best pricing strate-gy. If you are a cash seller,check forward bids.

�Fundamentals: USDAsurprised the trade, loweringits production estimate to12.921 billion bushels, a littlemore than expected. Giventhe lagging harvest, that mightbe revised down even more inthe Jan. 12 report. Weatherand drying issues will continueto drag this year’s harvest out.Soybean Strategy

�2009 crop: Soybeanprices managed to move high-er last week despite the larger-than-expected USDA forecast.A close above $10 on Januaryfutures would open the doorfor a potential challenge ofresistance at $11. Target amove to $10.80 on Januaryfutures to boost sales to 50percent. Check the CashStrategist Hotline frequently aswe could adjust targets at anytime. We might even boostsales further.

�Fundamentals: TheNovember USDA crop esti-mate, 3.319 billion bushels,was a little larger than antici-pated, but it had only a shortnegative market influence.The trade is watching theinfluence of “outside” mar-kets and South American cropconditions as close, if notcloser, than the U.S. crop.Brazilian conditions generallyhave been favorable, withplanting now 31 percent com-plete, which is ahead of nor-mal. Argentina is facing amore troublesome situation,with dry soils slowing planti-ng, which is now 12 percent

done, and threatening poten-tial as the season gets underway.Wheat Strategy

�2009 crop: The long-term trend in wheat continuesto have an upward bias, withprices holding key support lev-els when they decline. Goingforward, we anticipate more ofa sideways trend, but one thathas a slight upward bias. Userallies to $5.50 on ChicagoDecember futures for catch-upsales. Target a move near $5.70on the December futures toconsider additional sales.

�2010 crop: We are con-sidering an initial sale if Chica-go July futures approach $6.50.

�Fundamentals: TheNovember USDA report wasconsidered a little negative,adding to the fundamental dragon prices. The 2009/2010 U.S.ending stocks are now estimat-ed at 885 million bushels,resulting in the largest stocks-to-use ratio since the late1980s. However, prices stilldraw underlying support fromthe anticipated drop in soft redwinter wheat plantings andactive investor interest.

Amid all of the turmoil overthe future of investment mon-ey in commodity markets, itcontinues to be a driving force.Uncertainty in that sector esca-lated with comments comingout of the Commodity FuturesTrading Commission (CFTC)last spring and summer aboutexcessive speculation.

When the CFTC orderedDeutsche Bank to adjust hold-ings in two of its exchangetraded funds (ETFs) at the endof summer, uncertainty ratch-eted even higher. There wastalk other ETFs might beforced to make changes, or thatchanges may be coming for thebig commodity index funds.

The release of the newtrader data from the CFTCwent a long way toward calm-ing everyone’s nerves. Thatdata confirmed what some

Basis charts

had been saying — the moneyin the big index funds largelywas not responsible for thesurge in energy prices in 2008.

Money started flowing backinto commodity index funds atthe beginning of 2009, accelerat-ing in the second quarter. Evenwith the summer price weakness,there’s little reason to think itslowed down in the third quarter.

The rebalancing of the twolargest commodity indices, theGoldman Sachs CommodityIndex and the Dow Jones-UBSCommodity Index, in the nextmonth will have market implica-tions. Funds following thesetwo are estimated at $104 billion.

Generally, both are shiftingsome of their holdings awayfrom energies and precious met-als and into agricultural markets,grains in particular. The chartshowing the relative value ofcorn vs. gold hints why this shiftis taking place, at least in part.

It’s thought the rebalancingcould increase the long positionstied to these funds by 65,000contracts in corn, 25,000 inwheat, and 18,000 in soybeans.

The Goldman index will shiftsome money into livestock,while the Dow Jones will shiftsome out. On balance, though,long positions should increase inlean hog and live cattle futures.

The new weightings will takeaffect in early January for both.Given that, funds following theseindices should start to shift posi-tions toward the new weightingssometime in December.

Given the rally grain marketshave enjoyed, it’s possible thisadditional buying could coincidewith short-term market peaks;maybe even longer-term peaks.

Cents per bu.

Investment moneyremains a driving force

Page 16: FarmWeek edition November 16 2009

PERSPECTIVES

FarmWeek Page 16 Monday, November 16, 2009

Jubilant about prospects for record or near-recordcorn and soybean crops, now farmers are worried anddepressed about the 2009 harvest.

How can we cope when wesee corn ears dropping, soy-bean pods shedding theirseeds, and the quality of grainsand oil seeds slipping on a dai-ly basis? It’s not easy to main-

tain an upbeat disposition when our economic well-being is threatened. But, there are some things we cando behaviorally to improve our coping.

Complaining helps.There are several reasons why complaining helps.

First, sharing our concerns helps reduce our anxiety.When others listen with understanding, we feel emo-tionally comforted.

Second, talking aboutour worries usually leadsothers to give us feedback,which helps confirm thatwe have good reasons tobe worried or perhaps justthe opposite, that we areunnecessarily stressing outabout circumstances thataren’t as bad as they mightseem when we brood onthem alone. Feedbackhelps us determine if ourworries are reasonable.

Third, talking about ourconcerns may help usdevelop alternatives toworrying, such as becom-ing engrossed in conversa-tions or finding projects tocapture our attention whenwe can’t harvest. Humansare social beings who needemotional support fromothers, and complainingcan help us obtain this nec-essary understanding.

But, if we complainonly to make others as mis-erable as we are, complain-ing becomes a useless tactic and drives people away.We should label our feelings by saying things like,“I’m worried and I don’t what to do,” or “Do youthink my worries are reasonable?” Be sure to say“Thanks for listening.”

Research has confirmed the comfort that comesfrom receiving positive understanding reduces theproduction of adrenaline and cortisol (i.e., bodilyhormones that signal distress and depression) andincreases the production of serotonin and norepi-

nephrine (i.e., hormones that accompany a sense ofwell-being). So, visit with friends, neighbors, andmake complaining a positive coping device.

Watch what you think about.Yes, it’s mind over body. What we think about tells

our body how to cope. When we are alarmed, brood-ing, worried, or angry, our bodies don’t produce sero-tonin and norepinephrine.

Instead, the brain sends a signal to our adrenalglands to become alarmed.

It’s appropriate to become alarmed when we firstdetect a threat, so that we can evaluate it and deter-mine if we need to fight it or take flight from it.

But if we evaluate a long-term threat, such as rainyday after rainy day, by dwelling on the negatives, wedeplete our bodies of serotonin and norepinephrine.

Sleep becomes difficult and not restful. We become consistently keyed up and also

depressed as our body alternates between arousal andtiredness. We need breaks of many hours and evendays from worry.

How do we get these breaks? By controlling whatwe think about, we tell our bodies to remain on guardor to decompress and relax.

Just like positive complaining can help produce theserotonin and norepinephrine we need, becoming

engaged in positive activities also produces theseessential hormones. We can indulge in our favoritepastimes and in creative outlets.

Building something new, reading stimulating booksand articles, and engaging in vigorous physical exer-cise, hobbies, and music all stimulate the productionof serotonin and norepinephrine. Physical exercise isparticularly beneficial in producing serotonin.

Be ready when good weather arrives.Farmers are practical people who get their machin-

ery in tip-top shape when the weather is bad outside.How about lining up additional help so that harvestcan proceed easier when the weather allows? Arrangefor trucks to be available when you begin harvestingagain. Ask relatives and semi-retired farmers if theycan help when the weather improves.

Be sure to not overtaxyourself when you har-vest. Becoming sleepdeprived by putting inextra long days and nightsduring favorable harvestweather can increase yourrisks for injuries andmachinery breakdowns.

Researchers have foundthat accumulated sleepdebt of 10 hours (in otherwords, that’s two hours ofreduced sleep for each offive days/nights) is similarphysiologically to 0.08blood-alcohol level.

When we are sleepdeprived, our reactiontime is slower. We aremore prone to verbal andmotor mistakes and moreapt to make misjudg-ments.

My suggestions, inmany ways, are good com-mon sense. The part thatmost farmers don’t under-stand is how we can con-trol our serotonin andnorepinephrine levels by

the way we behave.We can’t control the weather or markets, but we

can control our behavior — for the most part. Keep-ing ourselves in optimal running condition makes usmore likely to succeed as farmers.

Dr. Michael Rosmann is director of AgriWellness Inc. ofHarlan, Iowa. AgriWellness is a nonprofit organization devot-ed to improving the behavioral health of agricultural people.The website is {www.agriwellness.org}.

MICHAEL ROSMANN

guest columnist

It is so exciting to drive a com-bine and watch thatbig machine, likemagic, sort out thekernels of cornfrom the trash.That golden grainflowing out of theauger into thetruck is a beautifulsight.

Before startingto harvest, we sent

a load of hogs to market. It’s hardto imagine those lean, hard 250-pound animals could be ready formarket. Just six months ago, theywere born weighing about 2pounds.

About the time we got reallyrolling in the corn field, the rainscame. Like they have all fall.Rained out again.

After that, I found myself sit-ting at my farm desk in ourmachinery repair building, looking

out the window at the sheets ofwater coming from a dark sky. Ibegan to reflect on this businessof farming.

You work for months to bringyour grain and livestock to market.You have to do that. You need themoney to pay your operating loanat the bank.

You also are going to needenough money to buy nitrogenand seed for next year. Maybe a lit-tle more to live on or buy a pieceof machinery you need. When youare finished with one crop, youstart all over again.

I don’t need to tell you this hasbeen a tough year for many farm-ers. The volatility in prices hasbeen a challenge —and then thewet spring, wet fall. It has neverbeen an easy business. That’s onereason we’ve lost so many farmers.

There are so many variablesthat we can’t control — floods,droughts, price, mad cow, H1N1

flu, trade embargoes. To survive in this business, you

must persevere and not make toomany mistakes. If you can suc-ceed, the reward is not just mea-sured in money, although you needthe money to survive.

The reward is an exhilaratingsense of satisfaction when you seewhat you have produced —mature market hogs, golden grain.

And it all started early in theyear when you turned the boar inwith the sows, when you plantedthose little seeds in the soil.

Halleluiah, the sun was shiningagain. We’ll get this crop out andbe there for another year.

John Block of Gilson, a former U.S.agriculture secretary in the Reaganadministration, is a senior policy adviserwith the Washington, D.C., firm ofOlsson, Frank, Weeda, and Terman,which specializes in ag issues. His e-mail address is [email protected].

JOHNBLOCK

Farming, rain delays, perseverance

FACING FRUSTRATION

You can’t control the weather, but you have options to help you cope this fall