Per

iod

ical

s: T

ime

Val

ued

Monday, February 21, 2011 Two sections Volume 39, No. 8

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

COUNTY OFFICIALS shouldfocus on their overall goals whenrevising wind development ordi-nances, two experts advise. ............2

THE PORK sector faces mount-ing public and regulatory pressures,the Illinois Pork Producers Associa-tion’s new president warns. ..................5

THE ETHANOL INDUS-TRY continues to fight for policysupport amid high corn prices andlegislative resistance. ......................4

PORK EXPO INFO

Art Kuhn, left, a pork producer from DeKalb County, and his son, Hayden, center, a senior at Genoa-Kingston High School, view corn samples and discuss the importance of feed particle size for im-proved digestibility in livestock with Lee Drewelow at the Illinois Pork Expo in Peoria. Drewelow waspromoting IFA roller-grinder systems at the expo. More from the Pork Expo appears on page 5. (Pho-to by Ken Kashian)

Quinn seeks more cuts, borrowing to pay billsBY KAY SHIPMANFarmWeek

Illinois must tighten its beltand address billions in overduebills that will remain despite anincome tax increase, Gov. Pat

Quinn saidlast week.

Quinnwarned law-makers theymust make dif-ficult choiceswhen he un-veiled his $52.7billion budgetfor fiscal year2012 that starts

July 1. The governor’s proposalincludes borrowing to pay $8.75

billion in overdue bills.“We need to keep investing

in essential, necessary serviceswhile cutting programs thatdon’t work,” Quinn told legisla-tors gathered in the House.

Illinois Farm Bureau Presi-dent Philip Nelson pointed outQuinn’s proposed budget“reflects the serious challengesthat the state’s fiscal situationcontinues to present.”

“There is, unfortunately, noescaping the reality that cutsneed to be made, and that willcause a lot of pain. That painneeds to be shared by every-one,” Nelson said.

Quinn’s staff emphasized hisproposed budget included no

new programs but is larger thanprevious budgets because itincluded $1.7 billion in higherpension costs and other expenses.

A larger budget is necessary“because we’re fixing the sys-tem ... We have to includeeverything in the budget,” JackLavin, Quinn’s chief of staff,told reporters during a briefing.

State Budget Director DavidVaught estimated the state mayface a $9 billion to $10 billiondeficit if no cuts are made orborrowing is not approved.

Lavin and Vaught claimedthe budget included account-ability measures and goals foragencies. They also concededsome programs are more easily

measured by accountabilityyardsticks than others.

“Continued fiscal reformand changes need to occur,”IFB’s Nelson said. “The stateneeds to get back on the righttrack for the future and onceagain make it a desirable placeto live and work.”

Illinois is paying the pricefor delaying payments to ser-vice providers. Lavin estimatedthe state is paying as much as$700 million more each yearbecause vendors are chargingmore to offset the long delayin state reimbursements andcontractors have withdrawn

Gov. Pat Quinn

See Quinn, page 3

Could president’s plan lead to farm bill reopening?

BY MARTIN ROSSFarmWeek

Faced with a dual WhiteHouse/congressional threat ofmajor ag budget cuts, produc-ers last week feared potential“reopening” of the currentfarm bill before Congress candevelop solid program spend-ing priorities for the next one.

President Obama’s fiscal2012 USDA budget seeks $4billion in cuts in discretionaryspending over last year’s fiscal2011 request. Total USDA out-lays would be reduced by $7billion to help bring down thebudget deficit, Ag SecretaryTom Vilsack reported.

Obama proposes eliminat-ing farm payments to producerswith higher adjusted grossincomes (AGI). After a proposedthree-year phase-in period, pay-ments would be made only tothose with less than $500,000 inAGI from agriculture or less than$250,000 off-farm AGI.

Obama’s plan reportedlywould save $2.6 billion over 10years and affect 30,000 currentpayment recipients. USDA’s new2011 farm income forecastsshow “overall income growth,”but “it’s not necessarily distrib-uted among all sizes of opera-tions,” said Vilsack, who defend-

ed targeting the payments.The USDA budget also seeks

a cut in maximum annual per-farm direct payments, from$80,000 to $60,000, and reducedpremium assistance to cropinsurers who sell catastrophic“CAT” coverage. CAT cuts, afollow-up to $6 billion in 2010cuts, aims to save an added $1.8billion over 10-years.

Vilsack also cited proposedcuts in so-called research andconservation “earmarks,” suchas watershed flood protection-rehabilitation, wildlife, andgrasslands programs.

American Farm Bureau Fed-eration analyst Tara Smith finds“nothing unusual on that front,”given the president’s push forpotentially “painful” cuts.

“Presidential budgets get filedaway pretty quickly,” said Smith,who saw Congress’ debate overthe current budget continuingresolution (CR) drawing atten-tion even more rapidly awayfrom Obama’s plan.

However, House Republi-cans proposed even moreaggressive CR cuts, includingwhat Smith termed an estimat-ed 22 percent “hit” in discre-tionary ag funds and conserva-

tion program cuts for theremainder of fiscal 2011. Thatwas versus an average 10 per-cent cut in other non-defenseareas, and she argued ag hasbeen asked to shoulder “morethan our fair share.”

Further, Smith toldFarmWeek near-term cutscould force a “short-sighted”

reopening of the 2008 farmbill. She stressed “we don’twrite farm policy for one year,”arguing the current crop pricesituation that’s spurred senti-ments toward payment cutseventually could sour.

“I don’t suspect there’sgoing to be a lot of desirewithin the ag committees

either on the House side orthe Senate side to open up thefarm bill any earlier than wehave to,” Smith said.

“The 2008 farm bill was acommitment to farmers andranchers and the nutritioncommunity and the conserva-

Proposed budget targets direct payments

See President, page 4

ILLINOIS HIGH-SPEED RAIL ON TRACK — Oth-er states are backing away from high-speed rail, but not Illi-nois.

Illinois is “leading the nation in building a robust and effi-cient high-speed rail network,” Gov. Pat Quinn said in hisbudget message last week.

In Illinois, demand for passenger rail service is at an all-time record with Amtrak reporting a record 2 million riderslast year, Quinn noted. The governor proposed to increaseAmtrak funding by 42 percent.

Quinn also said he intends to go after more federal high-speed funds. That may be possible, because last week FloridaGov. Rick Scott rejected $2.4 billion in federal funds to buildthe first phase of a Tampa–Orlando–Miami high-speed railline.

Likewise, the governors of Wisconsin and Ohio alsorecently turned down a total of $1.2 billion in federal fundingfor new passenger lines.

Quinn reported the prospect of high-speed rail in Illinoisalready has attracted new manufacturers to the state.

RIVER ISSUES — Illinois lawmakers joined forces lastweek to fight efforts to block key navigation channels andensure flood protections within the Mississippi River basin.

Springfield Democrat Sen. Dick Durbin, Highland ParkRepublican Sen. Mark Kirk, Collinsville Republican Rep. JohnShimkus, and Belleville Democrat Rep. Jerry Costello sent aletter to President Obama urging him to include levee andrelated improvements in administration infrastructure pro-posals.

The four held a Southern Illinois levee “summit” inDecember. Durbin called flood protection “a national priori-ty. Kirk stressed the need to maintain “the jobs that dependon our riverways,” through lock and levee upgrades.

Meanwhile, Rep. Judy Biggert, a Hinsdale Republican, ledthe fight against amendments to the House budget continu-ing resolution that would result in “cutting off the entireGreat Lakes region from billions of dollars in maritime com-merce.”

Measures focusing on Asian carp control proposed pro-hibiting use of federal funds to open Chicago’s Thomas J.0’Brien Lock and Chicago River Controlling Works. Biggertand Company argued $29 billion in barge traffic — includingcoal, asphalt, gravel, grain, road salt — relies on open chan-nels.

SALUTE TO THE BLUE, GOLD — More than 17,400FFA members in Illinois will celebrate National FFA Weekthrough Saturday with a variety of activities. Illinois hasabout 300 FFA chapters across the state.

FFA chapters in Illinois and around the nation use FFAWeek to educate the public about agriculture and agricultureeducation.

National FFA Week occurs during the week of PresidentGeorge Washington’s birthday. The Illinois FFA membersand the Illinois Agriculture in the Classroom program areusing a children’s book about George Washington and hisfarm as a teaching tool.

FarmWeek Page 2 Monday, February 21, 2011

(ISSN0197-6680)

Vol. 39 No. 8 February 21, 2011

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.

© 2011 Illinois Agricultural Association

STAFFEditor

Dave McClelland (dmcclelland@ilfb.org)Legislative Affairs Editor

Kay Shipman (kayship@ilfb.org)Agricultural Affairs Editor

Martin Ross (mross@ilfb.org)Senior Commodities Editor

Daniel Grant (dgrant@ilfb.org)Editorial Assistant

Linda Goltz (Lgoltz@ilfb.org)Business Production Manager

Bob Standard (bstandard@ilfb.org)Advertising Sales Manager

Richard Verdery (rverdery@ilfb.org)Classified sales coordinator

Nan Fannin (nfannin@ilfb.org)Director of News and Communications

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 TakesNATURAL FORCES

County officials advised to considergoals in revising wind ordinancesBY KAY SHIPMANFarmWeek

County officials should fo-cus on their overall goals —not specific wind farm projects— when revising wind devel-opment ordinances, two ex-perts advised at a recent windenergy conference.

“The approach a county(government) takes dependson if it wants wind (develop-ment). And if so, where andhow much?” said Matt Boss, abusiness development managerwith Mainstream RenewablePower.

“It is important to set eco-nomic development goals,”Boss continued. “Then ordi-nances need to be tailored de-pending on the county,whether it’s agricultural or ur-ban.”

Boss was part of a countyordinance panel during the re-cent Siting, Zoning, and Tax-ing Wind Farms in IllinoisConference in Normal.

Recently, several Illinoiscounties have revised or are inthe midst of revising wind en-ergy ordinances. Other coun-ties are considering placing amoratorium on wind develop-ment. Iroquois County is un-der a six-month moratoriumthat will end in April.

One driving force behindIroquois County’s moratorium

was concern about the disposi-tion of the turbines afterthey’ve outlived their useful-ness, said Iroquois CountyBoard member John Wilken-ing, who also serves on theFord-Iroquois County FarmBureau Board.

The county “didn’t want tobe sitting here with a bunch oftowers” after a wind farmclosed, Wilkening said.

Boss and fellow panelist JimGriffin, a Chicago attorney,said they favored revisions ofcounty wind ordinances in-stead of moratoriums on newdevelopment.

“As soon as a county knowsthe change it wants, it canamend an ordinance. It doesn’thave to use a moratorium,”Griffin said.

Boss advised county offi-cials to use ordinances to setwind development groundrules, such as standards forshadow flicker and noise. “Welike counties with a view ofwhat they want to do withwind (energy),” he added.

County officials should useopportunities, such as whenwind developers apply for spe-cial use permits, to ensure localstandards are understood andwill be met, Boss said. “Acounty can make clear what adeveloper must do to meet thestandards,” he explained.

Boss recommended countyofficials focus on specific stan-dards for noise, safety, andshadow flicker and avoid usingblanket requirements, such aslarge setbacks, to achieve thosestandards.

“Once a turbine is farenough away to comply withthe (noise) ordinance, why isany further setback required?”Boss asked.

Griffin cautioned county of-ficials that passage of morato-riums must follow a prescribedprocess and meet requirementsfor public notice, etc.

“A moratorium must have adeadline and the period shouldbe as short as a board feels isfeasible ... (The moratorium)needs to be clear so staff canimplement it, and landownersand developers understandwhat is and isn’t allowed,”Griffin said.

County officials also need toconsider if a moratorium oramendments will apply to pro-jects that have not filed forpermits, have filed for permitsbut not had a hearing, have re-ceived approval but aren’tbuilt, or are already construct-ed.

Generally, changes don’t af-fect already-built projects un-less the change enacts suchthings as new reporting re-quirements, Griffin added.

Winter temps may finish on milder noteBY DANIEL GRANTFarmWeek

Temperatures this week areexpected to cool off in Illinoisafter a much-welcomed warm-up last week.

Fortunately, though, it does-n’t appear the weather patternwill return to the frigid, snowyconditions experienced muchof December through the sec-ond week of February, accord-ing to Mark Russo, meteorolo-gist with Chesapeake WeatherServices.

“It looks like a new, veryspring-like pattern has evolvedand will be with us for quitesome time,” Russo told theRFD Radio Network.

The temperature last weekbriefly topped 60 degrees inmany parts of the state afterdipping below zero the previ-ous week.

Highs this week are not ex-pected to be as warm as lastweek, topping out in the 30and 40s, but it still should bean improvement compared tothe previous eight weeks.

“We had very cold tempera-tures in place in (December),January, and to start Febru-ary,” Russo said.

The statewide temperature

in December averaged a frosty24 degrees, 5.8 degrees belownormal, while the temperaturein January averaged just 21.8degrees, 3 degrees below nor-mal, according to the IllinoisState Water Survey.

As for precipitation, oddsfavor the wetter pattern of re-cent years will continue, Russosaid.

But there may not be asmuch snow the final fourweeks of winter.

“We haven’t seen any signif-icant precipitation since thebig storm (Jan. 31 through

Feb. 2), but precipitation maybe on the increase,” he said.

“With the warmer tempera-tures, it will allow most of theprecipitation to be in the formof rain instead of snow.”

So what caused the suddenchange in the weather patternlast week?

In an ironic twist, Russosuggested the powerful bliz-zards that struck the Midwestand parts of the southern andeastern U.S. the first half ofFebruary may have disruptedthe jetstream, thus producingthe new weather regime.

Vegetable researcher seeks farmersDan Anderson, research

specialist at the University ofIllinois, is looking for 10small-scale farmers for an on-farm research project on sus-tainable vegetable production.

Ideally, 10 farmers fromacross the state will be select-ed, according to Anderson.

Those farmers will havethe potential to achieve theproject goal of improvingthe sustainability of small-scale, management-intensivevegetable farms through on-farm experimentation anduse of cover crops during

fallow periods, he added.Farmers who are selected

and successfully complete theproject will receive a $500honorarium.

“This research builds uponprevious experimental field tri-als to test cover-croppingstrategies using on-farm re-search and farmer-to-farmereducation,” Anderson said.

To be considered, completethe online application form at{http://tiny.cc/fallowstudy}or contact Anderson by calling217-621-7974 or e-mailingaslan@illinois.edu).

STATE

Page 3 Monday, February 21, 2011 FarmWeek

Continued from page 1contract bids that now must bere-bid, usually at higher prices.

Although Quinn’s budgetspeech was short on numbers,he did offer support to sectors

of interest to agriculture. Thegovernor said he wants tobuild up Illinois’ export mar-kets and will restructure thestate’s foreign trade offices.During his speech, he high-lighted the recent $1.8 billion

sale of soybeans to China.In addition, the state also

must continue upgrading itsinfrastructure, including infor-mation technology and broad-band, the governor said.

To enhance innovation andentrepreneurship, Quinnnamed a new innovation coun-cil (see accompanying article).It was one of several blue-rib-bon panels the governor creat-ed last week.

Quinn challenged legislatorswho don’t like his budget pro-posal to put forward their owncounter-offer: “Saying no isnot enough unless you are will-ing to offer real alternatives,”he said.

FarmWeekNow.com

Quinn

For de ta i led in format ionabout the 2012 state budgetand its effect on ag, go toFarmWeekNow.com.

Quinn seeks cuts in ed, health care fundingBY KAY SHIPMANFarmWeek

School districts and health care providersface state funding cuts in Gov. Pat Quinn’s pro-posed budget for fiscal year 2012.

The governor maintained he is supportingessential services, but he suggested cuts to educa-tion and human services would save the statehundreds of millions of dollars.

Quinn proposed to increase the rate of per-pupil funding by $148 to $6,267 per student andto increase early childhood education by $38 mil-lion.

The governor also targeted Illinois’ 868school districts and urged consolidation but did-n’t set a specific goal. “Our fiscal reality demandsconsolidation. There are too many districts,” thegovernor said during his budget message.

District consolidation should not be mandated,according to Illinois Farm Bureau President PhilipNelson.

“The state should not be forcing schools tomake decisions that local property taxpayers maynot be supportive of,” Nelson said. “State fundingis critical in providing the education of our chil-dren, but it is local property taxpayers who bearthe greatest support and remain in control of theirlocal schools.”

Quinn also proposed cutting state funding by$95 million for school transportation and to elim-inate $14 million in state funding for regionaloffices of education. Local districts should payfor student transportation costs, he suggested.

Ben Schwarm with the Illinois Association ofSchool Boards noted the state already mandatesthat districts transport students. Plus, the statewas six months behind in paying transportationfunding in the last budget and is six monthsbehind in the current budget, Schwarm added.

Doctors, hospitals, and nursing homes,especially those in rural areas and the poorwho depend on them, face a potential $552

million cut in Medicaid rates. An already strained system in rural Illinois

may be pushed to the brink, according toMary Jane Clark, president of the IllinoisRural Health Association.

Clark said many rural health careproviders do not accept new Med-icaid patients now because of thestate’s low reimbursement rateand a six- to eight-month delayin payment.

“We wouldn’t think ofgoing into a grocery store,picking up a $3 galloncarton of milk, payingthem 10 cents, and say-ing that we’ll pay the restlater. But that’s whatwe’re doing with ourhealth care system,”Clark said.

Governor Quinn pledges to double Illinois exports over 5 years SWCD budget cut;consolidation urged

Gov. Pat Quinn held upIllinois exports as a shiningexample of the state’s eco-nomic power during his bud-get address last week.

“We are sixth in the nationin exports and first in theMidwest,” Quinn said, high-lighting a recent soybean saleto China. “As governor, Ipledge to double our exportsover the next five years.”

Quinn said he plans toreorganize the state’s tradeoffices.

During a briefing forreporters, the governor’s staffsaid the state would develop amore flexible trade presenceoverseas, particularly in SouthAmerica, Africa, and South-east Asia.

Quinn proposed levelfunding overall for the Illi-nois Department of Agricul-ture (IDOA) with a budget of$96.781 million, including$14 million in federal fund-ing. However, $600,000 wascut from the budget for Soiland Water Conservation Dis-tricts (SWCDs).

David Vaught, the gover-

nor’s budget director, said thestate needs to consolidateSWCD offices and “could usea regional approach for theadministration of those pro-grams that spends less onadministration.”

“The governor has encour-aged further consolidation ofSoil and Water ConservationDistricts. While we are con-cerned with the potentialimpact, we will reach out andwork with the governor andthe General Assembly to seeif there are alternative waysto reduce spending, ” saidIllinois Farm Bureau Presi-

dent Philip Nelson.Our goal will be to mini-

mize the negative impact onour members.

Some SWCDs are strug-gling with skeleton staffs andmay close soon, according toRich Nichols, executive direc-tor of the Association of Illi-nois Soil and Water Conser-vation Districts (AISWCD).

Nichols said two districtsmay close by the end ofMarch, another one the fol-lowing month, and three bythe end of May.

The Department of Natur-al Resources (DNR) received

small increases in state fund-ing under the governor’s bud-get, but will see a 53 percentdecrease in federal funds.

The federal cut reflectsthe one-time infusion of fed-eral stimulus dollars, primari-ly for control of the invasiveAsian carp, according toChris McCloud, DNRspokesman.

DNR’s overall budget isproposed at $258.97 million,down 7.2 percent from theprevious year. McCloud saidthe loss of federal fundingwould not impact any pro-grams. — Kay Shipman

Push begins to merge state treasurer, comptroller officesEstimated savings$12 million a year

Illinois citizens would saveabout $12 million annually andbe well served if the statecombined the offices of thetreasurer and comptroller, Illi-nois Treasurer Dan Rutherfordsaid in a press conference lastweek.

Rutherford, joined by sever-

al state senators and represen-tatives, launched the latesteffort to amend the IllinoisConstitution and consolidatethe two constitutional offices.

“It’s a no-brainer,” said Sen.Kwame Raoul (D-Chicago),one of Senate bill sponsors.

The timing is right to mergethe two offices because severalchanges have occurred sincethe 1970 state Constitution

was written, Rutherford said.Illinois has gained an audi-

tor general who reviews andaudits the state finances. Com-puterized records and othertechnology would make possi-ble the management of a sin-gle state office, to be known asthe Comptroller of the Trea-sury.

Rutherford explained $4million of the $12 million insavings would come fromreduced office expenses andstaff, while the remaining $8

million would be savedthrough better money manage-ment. Rutherford added bothhe and Illinois ComptrollerJudy Baar Topinka support themerger.

Separate bills have beenintroduced in the House andthe Senate.

To be put before voters, abill with the same wordingmust receive a three-fifths votein both chambers.

The proposed amendmentwould then be put on the

November 2012 ballot. Ifapproved, the amendmentwould affect the 2014 electionfor the newly combined office.

Rutherford emphasized acombined office is better suit-ed to today’s system of gov-ernment than the outdatedtreasurer’s vault with an 18-tondoor three floors beneath theCapitol. “We don’t operatewith bags of money threefloors below the State Capitolanymore,” the treasurer con-cluded. — Kay Shipman

Gov. Pat Quinn last week named businessexecutives, researchers, and university leadersto a new innovation council that will focus ontechnology and economic growth.

The panel will be chaired by Brad Keywell,co-founder of Groupon, an Internet-basedcompany that works with businesses to providediscounts for products and services.

The council is to work with academic, busi-ness, and government sectors to evaluate andrecommend initiatives to support innovation.Council members will develop methods toidentify, promote, and attract innovative enter-prises and develop policies to grow and retaininnovative entrepreneurs and researchers.

Council members include: Curtis Baird,head of two Carbondale technology compa-

nies; Dr. Caralynn Nowinski-Chenoweth, aChicago investment banker and physician; JohnClark, president of Reggio’s Pizza of Chicago;Lisa Freeman, vice president of research atNorthern Illinois University; Kendall “Ken”Hunt, chairman of VASCO Data SecurityInternational; and Eric Isaacs, director ofArgonne National Laboratory.

Other members are: Matt Maloney, head ofan online ordering service for 4,000 restau-rants; Norbert Riedel, chief scientific officerfor Baxter International; Lawrence Schook,University of Illinois interim vice president forresearch; Joseph Walsh, Northwestern Univer-sity vice president for research; and HowardTullman, president of Tribeca FlashpointMedia Arts Academy.

Quinn names new Illinois innovation council

GOVERNMENT

FarmWeek Page 4 Monday, February 21, 2011

Continued from page 1tion groups, and it was a five-year commitment. Congress needsto stand by that commitment.”

Illinois Farm Bureau Farm Policy Task Force Chairman DarrylBrinkmann noted efforts to preserve the existing ag budget baselinein the next farm bill. Changes of the kind proposed by Obama notonly could set program direction prior to farm bill debate but alsoerode the spending baseline, he warned.

Because of the relative positive price situation of the last severalyears, “there’s not a lot of baseline in (price-based) countercyclicalpayments to begin with.”

Brinkmann stressed “people have been making plans for the nextcouple of years based on the farm bill.” From planning and financialstandpoints, premature cuts “could be very harmful,” he said.

President

Transportation support fine; funding a question markBY MARTIN ROSSFarmWeek

Washington appears to real-ize transportation improve-ments are crucial to boostingthe economy, but money willbe the “main friction point” asthe rubber meets the road,said Soy Transportation Coali-tion Director Mike Steenhoek.

President Obama has pro-posed a six-year, $556 billionnational transportation bill.While “aggressive,” that plan isconsistent with efforts needed“to get our infrastructure backup to acceptable levels,” Steen-hoek told FarmWeek.

He conceded the tight fiscalenvironment in Washington,suggesting long-term fundingultimately could come in at aslittle as half that amount. How-ever, he said commercial trans-portation should be viewed asan investment in economicgrowth and jobs “rather thanjust spending money.

That said, Steenhoek isencouraged “any time our elect-ed officials, particularly thepresident, place great emphasis

continue to share “an affinityfor agriculture” and its needs,“that’s not necessarily the casewithin the federal agencies,”Steenhoek stressed.

“If you’re going to have aban on earmarks, you’re basical-ly going to allow federal agen-cies to actually conduct thatspending,” he said. “I’m not

sure agriculture’s going to winwith that scenario.

“There has to be a way formembers of Congress to beable to direct resources to theareas that are going to benefittheir states and the industriesthey represent. We can’t justdefer all that to the federalagencies.”

on transportation.” “One of the things that

happens during an economicdownturn is you start askinghow we can start pulling our-selves from the malaise we findourselves in,” he said. “Trans-portation is one of thosethings, not only through thejob-creating potential of infra-structure projects, but also,more significantly, through thegreater efficiency enjoyed bythe U.S. economy once pro-jects are actually built.”

The president offered fewdetails about how to pay for newtransportation spending. TheWhite House repeatedly has dis-missed the notion of raisinggasoline taxes to fund highwayimprovements, but officials arewary of added federal debt.

Transportation projects nor-mally are financed through“some form of taxation orsome form of debt,” Steenhoeksaid. Complicating the issue isObama’s proposal to put a mil-lion electric cars on the road by2015 — a move that wouldreduce fuel taxes that feed the

national Highway Trust Fundand thus would “exacerbate thefunding gap,” Steenhoek said.

The war on so-called spend-ing “earmarks” also couldimpede funding for regionalprojects that together formcrucial commercial transporta-tion networks, he added. Whilemany Capitol Hill lawmakers

install blender pumps whichwould enable consumers tochoose from among a variety ofethanol blends.

EPA’s fall announcement ofE15 approval for 2006 and newervehicles — later expanded to 2001or newer cars and light trucks —has spurred efforts by petroleuminterests and food manufacturersto block higher ethanol blends,the latter charging ethanolgrowth has inflated corn prices.

Mike Haag, president of theIllinois Pork Producers Associa-tion, is concerned about cornusage trends and the effectethanol policy could have on thecorn supply and feed availability.U.S. ending stocks of corn (675million bushels) currently are atthe lowest level since 1995/96.

“We (pork producers) likeethanol but are concerned about

the priorities being set about howwe use feed grain in this coun-try,” Haag told FarmWeek at theIllinois Pork Expo in Peoria.

“Even at a time of record-high (hog) futures prices, we’refaced with the possibility of abreak-even scenario” due torecord-high feed prices.

Illinois Corn Growers Associ-ation Technology and BusinessDevelopment Director DaveLoos said he harbors “a lot ofoptimism” regarding the 2011corn crop. Citing favorable con-ditions heading into spring plant-ing, he anticipates potential for“record yields and productivity.”

“If we can get back to nor-mal on yield trends and have afairly early harvest, I think theindustry will right itself prettyfast,” Loos said. — MartinRoss and Daniel Grant

Ethanol battle continuesThe battle over ethanol

growth intensified as biofuelssupporters took aim at propos-als targeting “E15” and fuelinfrastructure incentives andcorn and livestock producersdebated the impact of ethanolon grain availability.

Rep. John Sullivan (R-Okla.)last week proposed cuttingfunds needed by the U.S. Envi-ronmental Protection Agency(EPA) to implement use of 15percent ethanol blends.

Renewable Fuels AssociationPresident Bob Dinneen arguedthe measure “seems more aboutpolitical science than physicalscience,” and “would only serveto slow the evolution of Ameri-ca’s domestic ethanol industry.”

At the same time, Rep. JeffFlake (R-Ariz.) proposed to baruse of USDA funds to help

CFTC $$ at riskThe market could become riskier business for producers if

Congress fails to fund the beefed-up mission of the CommodityFutures Trading Commission (CFTC), investor advocateswarned last week.

The proposed House Republican 2011 Continuing Resolution— which would fund the government for the balance of the fiscalyear once funding runs out March 4 — seeks cuts of $56.8 millionfrom the CFTC’s $168.8 million budget.

Further, House lawmakers propose even more dramatic cuts inforthcoming fiscal 2012 spending, rolling funding for the commis-sion back to 2008 levels. Fiscal 2012 CFTC funding would drop toroughly $110 million.

Tracy Stewart, executive director of the group ShareOwn-ers.org, warned that would undercut market regulators as theyattempt to “oversee the most sweeping financial reforms since theGreat Depression.” In the case of the CFTC, that includes newoversight of the “vast, multi-trillion-dollar” over-the-counterderivatives market, Stewart said.

Barbara Roper, Consumer Federation of America director ofinvestor protection, argued newly approved financial reforms aimto bring “more transparency and more safety to the system.”

In late January, CFTC issued proposed rules setting limits onthe amount of positions a person can hold with respect to com-modity futures and option contracts.

Roper maintained position limits should help prevent commod-ity markets from being “driven by speculators” rather than by busi-nesses that use them largely to manage risk.

“Averages businesses — farms, all sorts of businesses — use thecommodity/derivatives markets for basic, day-to-day business func-tions,” Roper told FarmWeek. “They use them to hedge risks. Whenthose markets fail, the cost of managing risks goes up. Whenthere’s no transparency, the cost of managing risks goes up.”

Until Congress provided it a recent funding boost, CFTCstaffing had fallen to the same level as when the agency was cre-ated in 1975. Over the past decade, trading volume in the mar-kets overseen by the agency has risen nearly fivefold, and thenumber of actively traded futures and options contracts hasincreased sevenfold.

Failure to increase or at least hold the line on CFTC fundingcould force the commission to focus its energies on derivativesregulation, resulting in “a decline in the quality of regulation we’reseeing in the commodity/futures markets,” Roper said.

She said claims regulators could cut costs by improving effi-ciency, arguing budget cuts limit adoption of technologies thatwould strengthen regulatory oversight. — Martin Ross

What’s in a label? To ruralcommunities and producerswithin the urban-suburbanshadows, it can mean the feder-al funding or programs crucialto future economic viability.

House Ag Rural Develop-ment Subcommittee ChairmanTim Johnson, an Urbana Repub-lican, led a hearing last weekfocusing on various definitionsof “rural” applied under USDAprograms. The 2008 farm billmandated changes in definitionsaimed at ensuring funds aren’tdirected toward urban areas.

USDA has not yet completeda farm bill-directed report onthose definitions, and Johnsonsaid lawmakers would help thedepartment ensure funds areused “in the most effective way.”

Illinois Institute for RuralAffairs (IIRA) Assistant DirectorTimothy Collins sees agricultureremaining a key rural compo-nent. But economic, infrastruc-ture, and transportation develop-ment are “interconnected” inhelping provide off-farm or val-ue-added income opportunitiesfor farm and rural residents amidtight federal dollars, Collins said.

Illinois has become moreurbanized: 26 of 102 countieswere designated as “metropoli-tan” in 1980; 36 currently are soidentified. In a 2005 reportabout changing U.S. Census def-initions, IIRA expressed con-cerns about potential impacts

for new metro or urbanized“micropolitan” counties.

USDA state officials reportlittle change in dollars for thosecounties — several have receivedbusiness and community projectloans and grants since 2005.

“The importance of thesedefinitions, though, works outin two or three different ways,”Collins told FarmWeek.

“In counties on that urban-rural fringe, it can be problemat-ic in terms of their ability to getfederal funds. They’re rural incharacter, but they’re urbanizing.There are more demands ontheir services, but they don’t havethe local resources yet to dealwith some of those demands.

“And we have pretty gooddiversity in our rural areas, bothin terms of landform and, asyou get into the southern

region, the amount of coalmined and increased forestry.

“That suggests that for fed-eral programs to be effective,these definitions are importantto help target types of pro-grams that might be deliveredin these types of areas.”

Those complexities translateto varying conservation needsas well as a changing view ofwhat constitutes “rural devel-opment.” Biofuels and otherprocessing facilities that tap agoutput are locating both in rur-al communities and on theurban fringe. Local food andagritourism have proliferatedwithin the suburban landscape.

Flexibility in development pro-grams can foster urban marketsfor rural goods, with revenues“flowing back” to rural Illinois,Collins said. — Martin Ross

Defining ‘rural’ seen as defining issue

LIVESTOCK

Page 5 Monday, February 21, 2011 FarmWeek

New IPPA president wants to maintain ‘social license’BY DANIEL GRANTFarmWeek

The issue of record-highfeed prices created quite a buzzlast week at the Illinois PorkExpo in Peoria.

But Mike Haag, newly elect-ed president of the IllinoisPork Producers Association(IPPA), believes there is agreater threat to the long-termviability of the pork industryin the state.

“I believe we’re in a time inwhich a lot of our future couldbe dictated by legislation andregulations,” said Haag, whomanages a 1,200-sow, farrow-to-finish operation with his broth-er-in-law (Jeff Stark) and father(Dewaine) in Livingston County.

encouraged producers to takepart in the We Care Responsi-ble Pork Initiative, a programdesigned to demonstrate pro-ducers are accountable toestablished ethical principlesand animal well-being practices.

“We Care not only is a sym-bol and reminder of what wedo every day, it provides anopportunity to explain to oth-ers what we do for consumers,”said Haag, who with his wife,Trisha, has three children(Kaleb, Brooke, and Kacie).

“We hold ourselves account-able for taking care of our ani-mals and maintaining a safe,high-quality pork supply.”

Illinois pork producersapparently had success in

recent years despite profitabili-ty issues. The inventory of hogand pigs in Illinois (4.3 millionhead) in December was up 1percent compared a nationaltrend that was down 1 percent.

Haag also encouraged pro-ducers to participate in the PorkPower program, particularly inlight of rising food productioncosts and higher food prices.

Pork Power, which is a part-nership of IPPA, the IllinoisCorn Marketing Board, andthe Illinois Soybean Associa-tion, since it was launched in2008 has collected more than200,000 pounds of donatedpork that was used to providemore than 800,000 meals toneedy families in the state.

“We need to do what we canto minimize the impact (ofpotential legisla-tion/regulations) so we cancontinue to operate and remaineconomically viable,” he said.

Seven states in recent yearspassed legislation, promoted byanimal welfare groups, to phaseout the use of gestation crates.

Meanwhile, other proposedregulations/legislation could lim-it livestock producers’ ability totreat animals with antibiotics,limit producers’ ability to earnpremiums through specialty con-tracts, and require producers toacquire dust permits to operate.

Haag, in response, urgedpork producers to tell their sto-ry to lawmakers and consumers

and to contin-ue to engagein practicesand programsthat demon-strate socialresponsibility.

“We’re real-ly good asproducers atwatching our

feed costs, maintaining thehealth of our animals, lockingin a profit, and increasingdemand,” Haag said. “But Ihave a sincere concern that, ifwe’re not careful and vigilant,we could lose our social licenseto stay in business.”

Haag, who has been anIPPA member since 1986,

Mike Haag

Analyst: Hog market has more upside potentialIf demand for pork this year

is anything like it was last weekat the Illinois Pork Expo, itshould be a good year for hogproducers.

Concessionaires at the expo,billed as the largest pork-specif-ic trade show in Illinois, wereunable to cook pork chops fastenough to keep up with stronglunch-hour demand.

Some expo participants, as aresult, were forced to form long

U.S. pork exports shipped lastyear increased by 3 percentcompared to 2009.

“June hogs recently got to$103 (per hundredweight), and itlooks like they have more upsidepotential,” the analyst said.

Pfitzenmaier predicted hogfutures in coming months couldincrease by another $10 to $15per hundredweight.

However, the long-termdirection of the hog marketwill depend on whether con-sumers keep buying meat athigher prices and if hog pro-ducers are able to expanddespite record-high feed prices,

according to the analyst.“Retailers absorbed a lot of

the price increases the last halfof 2010, but at some point(retail meat prices) will bustopen,” he said. “Then we’ll seeif we can sell the meat.”

Pfitzenmaier doesn’t lookfor a major boost in hog pro-duction this year, despitestrong prices and demand, dueto record-high feed costs andhistorically low grain stocks.

“I’m not sure how produc-ers will respond to higher(hog) prices,” he added. “Willthey take the additional risk?”— Daniel Grant

lines and wait until fresh suppliesof pork chops were available.

The situation last week inPeoria could be a microcosmof what occurs this yeararound the world as strongdemand is expected to test atight supply of hogs.

“The total number of hogswill be down this year, whichhas been supportive and kept afloor under hog prices,” saidTomm Pfitzenmaier, market

analyst with Summit Com-modity Brokerage in DesMoines, who was a featuredspeaker at the Pork Expo.

The inventory of hogs andpigs in the U.S. (64.3 million head)as of December was down 1 per-cent compared to a year ago.

Elsewhere, South Koreanfarmers reportedly culled asmuch as 30 percent of theirswine herd due to an outbreakof foot-and-mouth disease.

Tighter hog supplies comeat a time when the world econ-omy and meat demand areimproving, according toPfitzenmaier. The amount of

Fine-tune feed costsHigher feed costs are expected to eat up a good portion of

profit potential this year on many livestock operations.There are strategies, however, that livestock producers can

implement to reduce the impact of historically high grain prices.Rommel Sulabo, a researcher in the department of animal

sciences at the University of Illinois, addressed the subject lastweek at the Illinois Pork Expo in Peoria and offered tips toreduce feed costs.

“Feed costs account for 70 to 80 percent of the cost of pro-duction so, obviously, it’s one of the major concerns right now(on livestock operations),” Sulabo said.

But with such a large amount of input costs tied up in feed, itmakes improved feed efficiency the best way for livestock farm-ers to improve their bottom lines.

Sulabo reported that for every tenth-of-a-pound improve-ment in feed gain, profits increase by about $3 per pig. So whatcan farmers do to improve feed efficiency and lower theircosts?

“Start with what you can control,” Sulabo said.Livestock producers should check all feeders and delivery sys-

tems for leaks and adjust them routinely to reduce feed waste.They should check the particle size of feed: Sulabo recommend-ed an optimal size for hogs between 600 and 800 microns.

“Reducing the size improves nutrient digestibility,” he said.Other steps include the following:• Incorporate distillers grains into the diet. With the current

price of corn and soybean meal, the cost of swine diets isreduced by $7 to $9 per ton for each 10 percent of distillersgrains added to the ration.

• Use small grains when available. Other feed grains, suchas wheat, sorghum, barley, and oats offer a similar nutrient val-ue as corn and possibly could be included in rations to displacecorn when the economics of such a move are favorable.

• Consider using other co-products. In some areas, co-prod-ucts such as hominy feed, bakery meal, or wheat middlings areavailable to swine producers. If they can be purchased at aprice that is about 90 percent of corn or less, the move canreduce overall feed costs.

• Use fish meal substitutes. Nursery rations have increasedas the cost of fish meal escalates. Products such as fermentedsoybean meal and enzyme-treated soy meal can be used toreplace the more expensive fish meal for weanlings.

• Eliminate inorganic phosphorus. The need for inorganicphosphorus can be reduced or eliminated by including phytaseand distillers grains in swine diets. — Daniel Grant

TECHNOLOGY

FarmWeek Page 6 Monday, February 21, 2011

High tunnels extend season for Adams County farmerBY KAY SHIPMANFarmWeek

Cory Crawford harvestssome of the earliest and thelatest farm-grown tomatoes inAdams County, thanks to hishigh tunnels.

Crawford, who farms nearUrsa in Adams County, farmswith four high tunnels, also

n’t experienced any hail orsnow damage to his structures,which are covered with 6-mil-limeter plastic.

The tunnels measure 30-by-96 feet and 26-by-96 feet.Crawford assembled them

from kits with the help offamily and friends.

Read more about Crawfordand his farm online at{http://web.extension.illinois.edu/adamsbrown/reports/i164/c431.html}.

known as hoop houses. Hediscussed high tunnel produc-tion at a recent University ofIllinois Extension smallacreage workshop.

Adding several weeks tothe start and the end of thegrowing season is a majorbenefit of using high tunnels,Crawford told FarmWeek.

His first tomatoes are ripe bymid-June and the growingseason continues to mid-November in his unheatedbuildings. In his structures,Crawford raises strawberries,peppers, green beans, onions,lettuce, cucumbers, turnips,and peas.

He also farms eight acres ofspecialty crops.

In addition to extending thegrowing season, high tunnelsalso help reduce problems ofpests and disease, Crawfordsaid. Monitoring humidity lev-els within the tunnel is impor-tant to eliminate problemsfrom bacterial diseases, headded.

Crawford has encounteredone major drawback — a lackof water. “I have to haul allmy water,” Crawford said. Headvised any grower interestedin high tunnel production toconsider a water source for thetunnel location.

Potential damage from highwinds is another considerationfor tunnel locations, Crawfordnoted. A nearby timber pro-vides some protection to hisstructures. And, Crawford has-

Ethanol-friendly corntrait granted approvalBY MARTIN ROSSFarmWeek

USDA has approved commercial production of GMO corntailored to boost per-bushel ethanol production while reducingits environmental footprint.

The National Corn Growers Association hailed federalapproval for Enogen, Syngenta’s corn amylase technology,which incorporates into the plant itself enzymes that breakdown corn starch for fuel production.

Syngenta plans limited 2011 production, within a secure,“closed” system designed to prevent what the North AmericanMillers’ Association termed “significant adverse impacts onfood product quality and performance” that could result fromEnogen grain mingling with other corn. A few western CornBelt millers are expected to use the product this year.

Syngenta head of technology acceptance Jack Bernens toldFarmWeek the new product exceeds the “baseline” performanceof liquid amylase now added to corn to speed transformation ofstarch to sugars that can be converted into fuel alcohol.

Citing rising ethanol input costs, Bernens said amylase cornuse could save 8-10 cents per gallon of ethanol produced, large-ly by reducing water and energy used in biofuels processing.That could mean $10 million in annual savings for a 100-mil-lion-gallon-per-year plant, “which hopefully would translateinto a benefit for the grower,” said Illinois Corn Growers Asso-ciation (ICGA) Technology and Business Development Direc-tor Dave Loos.

By reducing the amount of resources needed, amylase cornuse can lessen ethanol’s carbon “footprint” by 10 percent,Bernens said. That’s potentially key to market growth: The fed-eral renewable fuels standard sets a mere 15-billion-gallon-per-year target for corn ethanol use by 2022 but offers added leewayfor “advanced biofuels” that offer carbon reductions.

Where many specialty corn products carry a yield drag,Bernens reported no difference in yields between Enogen and“elite” varieties.

“This is different than an input trait — the ramp-up of this(product) will be a fair amount slower,” he nonetheless advisedprospective growers. “You need to grow the amylase; you needto test it in an ethanol facility. Then, (the plant) would contractwith its grower base the following year. It takes a couple ofyears to get a plant on line.”

The U.S. Food and Drug Administration deemed amylase-enhanced corn as being as safe as conventional corn for food orfeed, whether fed directly or as distillers dried grains (DDGs)produced in the process of making ethanol. Because processorsdon’t need to add sulfuric acid to balance pH as they do usingsupplemental enzymes, Bernens said DDG sulfur content,which can impede ruminant copper absorption and metabolismand feed palatability, is significantly lower with the GMO corn.

Commingling of Enogen with other varieties can causeproblems with starch quality in some industrial corn uses. Syn-genta has developed a plan to manage Enogen harvest, storage,and delivery from the farm to designated plants to avoid non-intended uses.

Contract producers are not to grow amylase corn within the“draw area” of food or industrial starch plants, and Syngentaplans an advisory council to keep millers abreast of “steward-ship” efforts.

“I think this can work in (individual) locations,” ICGA’s Loostold FarmWeek. “It’s going to take a closer relationshipbetween the grower and the plant, and its going to take theplant being able to manage the flows properly.

“They have to have the right balance of amylase corn com-ing in with other corn. The critical thing in an ethanol plant isthe consistency of the products, especially the DDGs, and theconsistency of the process.”

Farmers stroll through a Southern Illinois high tunnel used for specialtycrop production. The Natural Resources Conservation Service (NRCS) isstudying high tunnels for specialty crop production in Illinois and 37other states. (Photo courtesy Illinois NRCS)

PRODUCTION

Page 7 Monday, February 21, 2011 FarmWeek

U of I joins climate study on corn cropping systems

USDA’s National Institute of Food and Agriculture(USDA-NIFA) awarded $20 million to nine land-grant univer-sities, including the University of Illinois, and two USDA Agri-cultural Research Service institutions for a climate study oncorn production. The grant was announced last week in Wash-ington, D.C.

The U of I’s research efforts will be led by crop science fac-ulty members Emerson Nafziger and Maria Villamil. They willlead the U of I’s work to collect and analyze data over the nextfive years. Iowa State University will be the overall projectleader.

“The grant takes a synergistic approach to understanding theeffects of climate variability and impacts on the sustainability ofcorn-based cropping systems throughout the Midwest,” saidLois Wright Morton, an Iowa State sociology professor.

This spring, researchers will begin collecting data on car-bon, nitrogen, and water movement from 21 sites in eightstates. The teams will use field and climate data to create com-puter models and evaluate crop management practices.

Nafziger said the research builds on work he and othershave done for several years, looking at the effects of croprotation, tillage, and other factors on yields.

“With this funding, we will be able to measure some thingsthat we couldn’t measure before,” Nafziger said. “Our hope isthat sound management can be shown to benefit soils, cornyields, and the environment.”

“The goal is to create a database of plot, field, farm, andwatershed data that can be combined with climate data to developscenarios based on different practices,” Iowa State’s Morton said.

She said farmers in the region would have opportunities toparticipate in on-farm research and evaluate research models.The long-term national outcome is to reduce the use of energy,nitrogen, and water by 10 percent and to increase carbon seques-tration by 15 percent through agriculture and forest systems.

In addition to the U of I and Iowa State, the seven otheruniversities are: The Ohio State University, University of Wis-consin, Purdue University, University of Missouri, MichiganState University, University of Minnesota, and South DakotaState University. The two USDA ARS centers are in Coshoc-ton, Ohio, and Columbus, Ohio.

Strong demand could keep pressure on cattle pricesBY DANIEL GRANTFarmWeek

The current bull run in thecattle market likely will contin-ue, as USDA’s cattle on feedreport released Friday wasvery close to trade expecta-tions.

Cattle and calves on feed inthe U.S. totaled 11.57 millionhead as of Feb. 1, up 6 percentfrom last year, USDA reported.

Meanwhile, placements infeedlots in January totaled 1.89million head, up 4 percent fromlast year. Marketings of fed cat-tle (1.78 million head) were flatcompared to a year ago.

“Cash cattle prices havemaybe two to three weeks leftin this very exciting bull rally,”said Rich Nelson, director ofresearch at Allendale, Inc. inMcHenry. “But we do look fora dip into the second quarter.”

Cattle prices late last weekhovered around $108 per hun-dredweight.

And the high price levelsare expected to continue,despite a larger inventory andhigher placements, due todemand growth.

“We’re looking at higherslaughter numbers from nowuntil the end of summer,”Nelson said. “But we’re doingsuch a great job with exportsthat it’s taking care of all theextra slaughter.”

The volume of U.S. beefexports in 2010 increased by19 percent worldwide, and thevalue of those shipmentstotaled a record-high $4.08 bil-lion, the U.S. Meat ExportFederation reported.

Meanwhile, Nelson predict-ed domestic demand for beefand other meats actually couldincrease this year despite high-er retail prices.

“The U.S. consumer (as theeconomy improves) wantsmore meat,” Nelson said. “Thatshould offset higher prices.”

There is some concern Junecattle futures, which last weekapproached $120 per hundred-weight, could be overvalued,according to Nelson. But hebelieves there could be morefireworks in the cattle market

during the second half of 2011.“In the big picture, we’re

very bullish on prices the sec-ond half of the year,” Nelsonsaid. “Placements should starttailing off,” which could strainsupplies.

USDA last week alsoreleased inventory reports ofall cattle and calves in the U.S.(92.6 million head, down 1percent) and in the U.S. andCanada combined (105 millionhead, down 2 percent) thatappeared to be price-friendly.

FarmWeekNow.comGo to FarmWeekNow.com fordetails on the cattle on feedreport.

YOUTH IN ACTION

FarmWeek Page 8 Monday, February 21, 2011

Southern Illinois county Farm Bureaus host 100s of FFA membersHundreds of FFA members

representing about 30 FFAchapters recently learnedabout Farm Bureau and relat-ed topics during an event host-ed by several county Farm Bu-

reaus from Southern Illinois inconjunction with SouthernIllinois University’s (SIU) Col-lege of Agricultural Sciences.

The FFA Acquaintance Daywas held in the SIU Student

Center in Carbondale. FFA members had an op-

portunity to participate in sev-eral educational workshops.Topics ranged from Agricul-ture in the Classroom materi-als to information about FarmBureau and agricultural ca-reers.

After the workshops, stu-dents heard Illinois Farm Bu-reau President Philip Nelsondescribe his FFA career andprovide his view of the futureof the agriculture industry.

For participating in theevent, each of the FFA chap-ters is eligible to send a repre-sentative to the 2011 IllinoisFarm Bureau & AffiliatesYouth Conference April 4-5 inthe Crowne Plaza, Springfield.

Students make paper-bag horses used as Agriculture in the Classroom(AITC) teaching tools. FFA members worked with AITC coordinators fromacross Southern Illinois during a workshop session on ideas for highschool students to use in teaching younger students. (Photo by BradleyConant, manager of Washington and Perry County Farm Bureaus)

Applications available for Youth Conservation CongressThe Illinois Department of

Natural Resources (IDNR) isaccepting online applicationsfor the second annual YouthConservation Congress, whichwill be May 15 at the Brook-field Zoo, Brookfield.

Participation will be award-ed to conservation-relatedschool and youth groups inthe state. Students must beenrolled in an Illinois highschool during the 2010-2011

school year to be eligible. Each organization may reg-

ister a maximum of two groupleaders and five stu-dents.Students and leaders willhave an opportunity to show-case their achievements aswell as learn about manyyouth-related conservationactivities.

Applicants will be notifiedof acceptance by April 1. A500-word paper outlining thegroup’s conservation achieve-ments is required.

To apply, go online to{www.dnr.state.il.us/nrab/ycc.htm}. For more information,contact the IDNR educationdivision at 217-524-4126.

Feb.22Regional agroterrorism workshop, 8:30 a.m. to 3 p.m., Car-lyle Mariner’s Village, Carlyle. Register online at{www.Illinoisworkshop.org}.

Feb. 23Regional agroterrorism workshop, 8:30 a.m. to 3 p.m., PikeCounty Farm Bureau Building, Pittsfield. Register online at{www.Illinoisworkshop.org}.

Feb. 23-24Illinois Farm Bureau governmental affairs leadership confer-ence, Crowne Plaza, Springfield.

March 4-6Illinois Horse Fair, Illinois State Fairgrounds, Springfield. Forinformation, go online to {www.HorsemensCouncil.org}

March 5Sustainable farmer network, 6 to 9 p.m., 220 New AmericanBistro, Bloomington.

March 9Illinois Agricultural Legislative Day, Springfield.

March 9-10Rural Community Economic Development Conference, Holi-day City Centre, Peoria. For information, go online to{www.iira.org}.

March 10Livestock manager certification workshop, 8:15 a.m., Sanga-mon-Menard Extension office, Illinois State Fairgrounds.

March 11-12ExplorACES, University of Illinois College of Agricultural,Consumer, and Environmental Sciences, Urbana. Go onlineto {http://aces.illinois.edu/ExplorACES}.

DATEBOOK

SIU’s King to lead Horsemen’s CouncilSheryl King, director of

Southern Illinois University’s(SIU) equinescience pro-gram, recent-ly was electedpresident ofthe Horse-men’s Coun-cil of Illinois(HCI).

Othernewly elected

officers were Karen Freese,Hammond, co-owner andoperator of Lamplight Farmand Stables, vice president,and Dr. Joe Lowry, a Davis

Junction veterinarian, secre-tary-treasurer.

Immediate past presidentFrank Bowman, PleasantPlains, will remain on theHCI board and was appoint-ed to serve as the organiza-tion’s first executive director.King first joined SIU as anequine specialist in 1983.

She now directs thestate’s only four-year equinescience program.

She also conductsresearch in the areas ofequine reproduction andgeneral horse managementand welfare.

Sheryl King

FROM THE COUNTIES

Page 9 Monday, February 21, 2011 FarmWeek

ADAMS — A Viewpointmeeting will be at 7:30 a.m.

Friday at the Lamp Lighter,Payson. State Rep. Jil Tracy (R-Mt.Sterling) will be the speaker. Callthe Farm Bureau office at 222-7305 for reservations or moreinformation.

• Food Check-Out Day will befrom 10:30 a.m. to 1 p.m. Tuesdayat the HyVee Grocery, 36th &Broadway. Reusable grocery bagswill be given out during the pro-motion.

BUREAU — An agribusi-ness seminar will be at 9:30

a.m. Friday at Wise Guys, Prince-ton. David Kohl, Virginia Techprofessor emeritus of agriculturalfinance and small business man-agement, and a representativefrom EHedger will be the speak-ers. Cost is $20. Call the FarmBureau office at 815-875-6468 forreservations or more information.

• Farm Bureau will sponsor aninformational meeting on a Hawaiitrip at 7 p.m. Wednesday, March 2,at the Farm Bureau office. Thetrip will be Jan. 8-17. A Tri-Statedirector will discuss the itinerary.

CHAMPAIGN — View-point meetings will be at

11:30 a.m. Tuesday at the PhiloTavern, Philo, and at 7:30 a.m.Tuesday, March 1, at the MarketStreet Eatery, Sadorus. Breakfastwill be served. Call the FarmBureau office for more informa-tion.

DEWITT — A Women’sHealth Day will be from

9:30 a.m. to 1:30 p.m. Saturday,March 5, at Warner Library, Clin-ton. Cost is $5, which includeslunch. Call the Farm Bureauoffice at 217-935-2126 by Fridayfor reservations or more informa-tion.

EFFINGHAM — TheCommodities and Market-

ing Action Team will sponsor aworkshop on options and futuresat 7 p.m. Monday, Feb. 28, at theFarm Bureau office. Doug Yoder,Illinois Farm Bureau senior direc-tor of affiliate and risk manage-ment, will be the speaker. Call theFarm Bureau office at 217-342-2103 or e-mail ecfbm-gr@consolidated.net for reserva-tions or more information.

• The Local Affairs ActionTeam will sponsor an on-the-roadseminar at 7 p.m. Wednesday,March 2, at the Farm Bureauoffice. State Police Trooper SteveTarter will discuss truck weightlimits, medical card changes, andcomprehensive safety analysis.Call the Farm Bureau office at217-342-2103 or e-mail ecfbm-rg@consolidated.net for reserva-tions or more information.

• Farm Bureau and CountryFinancial representatives willsponsor a farm estate and transferplanning seminar at 6 p.m. Tues-day, March 8, at the Farm Bureauoffice. James Hughes, CountryFinancial security consultant, willbe the speaker. Dinner will beserved. Call the Farm Bureauoffice at 217-342-2103 or yourCountry Financial insurance repre-sentative by Monday, Feb. 28, forreservations or more information.

• The annual meeting will be at6:15 p.m. Monday, March 14, atthe Teutopolis Knights of Colum-bus building. A pork barbequeand chicken dinner will be served.Cost is $3. Call the Farm Bureauoffice at 217-342-2103 by Friday,

Deadline to return applications isMarch 15. To qualify, a student’sparents or the student must be aFarm Bureau member. Applica-tions are available at the website{www.montgomerycountyfb.com}.

• The Young Leaders will spon-sor a bus trip Saturday to the Pro-fessional Bull Riders, ScottradeCenter, St. Louis. Tickets are$45.50. Call the Farm Bureauoffice at 532-6171 for reservations.Tickets must be paid for by Friday.

PEORIA — A Food Check-Out Day activity will be

held at 10 a.m. Tuesday atKroger’s, Sterling Avenue, Peoria.A spin-the-wheel game will beplayed for Kroger gift cards,reusable grocery bags, and farmDVDs.

• A market seminar will be at 8a.m. Tuesday, March 1, at Exposi-tion Gardens, Peoria. John Roach,Roach Ag Marketing, will be thespeaker. Call the Farm Bureauoffice at 686-7070 for reservationsor more information.

RANDOLPH — An on-the-road seminar will be at

10 a.m. Tuesday, March 1, at theGateway FS facility in Red Bud.Kevin Rund, Illinois Farm Bureaulocal government director, and amember of the Illinois State Policewill provide updates on truckinspections, weight limits, andcounty roads. Call the FarmBureau office at 939-6197 or 443-4511 by Friday for reservations ormore information.

SCHUYLER — FarmBureau will participate in

Food Check-Out Day from 10a.m. to 2 p.m. Friday at theRushville County Market. Recy-clable grocery bags will be givenaway while supplies last and draw-ings will be held for six $20 giftcertificates. Food donations forthe Schuyler County Food Basketwill be accepted.

STARK — Henry, Knox,and Stark County Farm

Bureaus will sponsor a program,“Learn to Market Like Your Pay-check Depends on It” from 6:30to 8:30 p.m. Thursday in the Con-ference Center at Black HawkCollege, East Campus. Cathy

Ekstrand, Stewart-Peterson seniormarket adviser, will be the speak-er. The program is geared towardfarm couples. Call the FarmBureau office at 309-286-7481 forreservations or more information.

• Farm Bureau and the StateBank of Toulon will sponsor anag outlook breakfast meeting at 8a.m. Friday at the Bistro, Toulon.Larry Acker, 3F Forecasts, andDoug Yoder, Illinois Farm Bureausenior director of affiliate andrisk management, will be thespeakers. Call the Farm Bureauoffice at 309-286-7481 for reser-vations or more information.

• Stop by Ron’s Super Value,Wyoming, or the Toulon Marketto pick up a Food Check-OutWeek recipe booklet, which issponsored by the Marketing Com-mittee.

VERMILION — FarmBureau will celebrate Food

Check-Out Week by asking every-one to donate to local foodpantries. Collection carts will bestationed at the checkouts at bothDanville County Markets and theFarm Bureau office. FarmBureau members will bag gro-ceries and meet consumers from10 a.m. to noon Friday at CountyMarkets.

• The Legislative and LocalAffairs Committee will sponsor a“What’s Going on in Illinois Gov-ernment” discussion and View-point meeting at 9:30 a.m. Mon-day, March 7, at the Farm Bureauauditorium. Panelists will includeChuck Hartke, former Illinoisdirector of agriculture; Bill Black,retired state legislator; and KevinSemlow, Illinois Farm Bureaudirector of state legislation. Callthe Farm Bureau office for moreinformation.

• Farm Bureau will sponsor amarketing specialty crops work-shop at 1:30 p.m. Tuesday, March8, at the Farm Bureau auditorium.Cynthia Haskins, Illinois FarmBureau manager of businessdevelopment, will discuss grantsand funds available to specialtygrowers and how to market theircrops. Call the Farm Bureauoffice for more information.

March 4, for reservations or moreinformation.

FULTON — The Women’sCommittee will conduct the

annual “I Shopped the Sheriff ”grocery cart race at 10 a.m.Wednesday at the LewistownCounty Market as part of FoodCheck-Out Week. Sheriff JeffStandard and Coroner Steve Hineswill participate in the race. Allfood collected will be donated tothe Lewistown Association ofChurches Food Pantry.

• Farm Bureau and the Univer-sity of Illinois Extension willsponsor an agronomy and outlookmeeting at 8:30 a.m. Friday at theFarm Bureau office. TerryNiblack, University of IllinoisExtension; Tom Williams, WesternIllinois University geology depart-ment; and Matt Montgomery, Uni-versity of Illinois Extension, willbe the speakers. Cost is $8, whichincludes a rib-eye sandwich meal.Call the Farm Bureau office at309-547-3011 for more informa-tion.

• Farm Bureau will conduct a“Load a Wagon” food drive from11 a.m. to 2 p.m. Saturday at theCanton HyVee. All items will begiven to the Canton Food Pantry.

HANCOCK — FarmBureau will sponsor a

meeting with U.S. Rep. BobbySchilling (R-Moline) and U.S. Sen.Mark Kirk (R-Highland Park) at9:15 a.m. Saturday at the SpoonRiver College, Macomb. Call theFarm Bureau office for moreinformation.

• Memorial Hospital will spon-sor a hospital/Ag Committeemeeting at 6:30 p.m. Wednesday,March 2, at the hospital inCarthage. Call the Farm Bureauoffice for more information.

HENRY — Henry, Knox,and Stark County Farm

Bureaus will sponsor a program,“Learn to Market Like Your Pay-check Depends on It” from 6:30to 8:30 p.m. Thursday in the Con-ference Center at Black Hawk Col-lege, East Campus. CathyEkstrand, Stewart-Peterson seniormarket adviser, will be the speaker.The program is geared towardfarm couples. Call the FarmBureau office at 309-937-2411 forreservations or more information.

• The Henry County FarmBureau Foundation has four$1,000 scholarships and the FarmBureau has five $2,000 Wilbert &Carol Keppy Foundation scholar-ships available. Applications areavailable from high school guid-ance counselors, agricultureinstructors, and the Farm Bureauoffice at the website {www.henry-cofarmbureau.org} or e-mailkbhcfb@theinter.com. Call theFarm Bureau office at 309-937-2411 for more information.

• Henry and Rock Island Coun-ty Farm Bureaus will sponsor amarket outlook meeting at 6:15p.m. Thursday, March 10, at St.Paul Lutheran Church, Orion.Mike McClellan, Mobile WeatherTeam, and Mike Schaver, GoldStar FS grain merchandiser, will bethe speakers. Dinner will beserved. Cost is $18, unless theseries was prepaid. Call the FarmBureau office at 309-937-2411 forreservations or more information.

LEE — Applications for theBureau, Lee, and Whiteside

Summer Ag Institute are on theFarm Bureau website

{www.leecfb.org}. Teachers mayapply by April 29. Cost is $80 forFarm Bureau members and $100for non-members. Call the FarmBureau office for more informa-tion.

• Lee County Extension willsponsor a test session for thosewho need to renew their privatepesticide applicator’s license. Thesession will be from 10 a.m. tonoon Tuesday, March 1, at theLoveland Community Building,Dixon. There is no charge for theprogram. Call the Lee CountyExtension at 815-857-3525 forreservations or more information.

• Members should havereceived their dues notices.Return to the Farm Bureau officeby March 1. If you did not receiveyour notice, call the Farm Bureauoffice at 857-3531.

• Applications for the Bureau,Lee, and Whiteside County Sum-mer Ag Institute are available atthe website {www.leecfb.org}.The dates are June 13-17. Cost is$80 for Farm Bureau membersand $100 for non-members.Deadline to return applications isApril 29.

LIVINGSTON — TheWomen’s Committee will

sponsor a WJEZ radio quiz dailyfor $40 worth of groceries as partof Food Check-Out Week. TheYoung Leader’s Committee willsponsor a shopping cart race Fri-day at Dave’s Super Market, Fair-bury. Mark Heil, Prairie CentralCo-Op general manager, and MattJacobs, Graymont Co-op generalmanager, will participate in therace. Items collected during therace will be donated to local foodpantries.

MACOUPIN — A springOutlook meeting will be

at 6 p.m. Tuesday, March 1, at theFarm Bureau office. Dinner willbe served. Steve Jones, M & MService Co. grain division manag-er; and Rita Frazer, WSMI agdirector, will be the speakers.There is no charge for members.Cost for non-members is $10.Call the Farm Bureau office at217-854-2571 by Tuesday forreservations or more information.

• The Macoupin County Agri-culture Education Foundation hasscholarships available for studentswho will continue their educationin an ag-related field. Deadline toreturn applications is March 25.Call the Farm Bureau office at217-854-2571 for an application ormore information.

MONROE — The annualmeeting will be at 6 p.m.

Saturday at St. Mary’s Parish Cen-ter, Valmeyer. A silent auction willbe held. The Valmeyer HighSchool Chorus will provide theentertainment. Cost is $9.

• An on-the-road seminar willbe at 10 a.m. Tuesday, March 1, atGateway FS facility in Red Bud.Kevin Rund, Illinois Farm Bureaulocal government director, and amember of the Illinois State Policewill provide updates on truckinspections, weight limits, andcounty roads. Call the FarmBureau office at 939-6197 or 443-4511 by Friday for reservations ormore information.

MONTGOMERY —Montgomery County

Farm Bureau Foundation willaward six $1,500 scholarships tostudents who will pursue an agri-cultural-related field of study.

PROFITABILITY

FarmWeek Page 10 Monday, February 21, 2011

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.00-61.00 $45.8740 lbs. $77.98-79.50 $78.7750 lbs. n/a n/aReceipts This Week Last Week

24,563 31,716*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $79.06 $82.19 -3.13Live $58.50 $60.82 -2.32

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn2-10-11 33.8 24.2 26.12-03-11 44.0 30.5 29.2Last year 39.0 16.3 25.0Season total 1055.6 810.1 736.7Previous season total 1029.0 584.6 729.8USDA projected total 1590 1300 1950Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers n/a $105.30 n/aHeifers n/a $105.50 n/a

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 Change128.78 126.52 2.26

CME feeder cattle index — 600-800 Lbs.

n/a

Lamb prices

Window closing fast on tending to spring energy needsBY BRIAN HARTMAN

It appears that the win-dow of opportunity is clos-ing fast to fill your energy

inventory forspring andmake anyforward con-tract pur-chases.

The lowsfor gasolineand dieseltypically

occur by the first part ofFebruary but if you havesomething done by the endof February, you are still ingood shape. After that, themarkets start anticipating thedemand of the summer dri-ving season.

Egypt is the “wild card”currently creating muchuneasiness in the energymarkets. To date, therehave been no major supplydisruptions, but there is areal possibility that one mayoccur.

Five percent of global oilproduction passes throughthe Suez Canal and the Suez-Mediterranean pipeline. Thebig question is whether theviolence and civil unrest willspill over to more countrieslike it has in Tunisia, Jordan,and Yemen.

Until Egypt settles down,the region will remain a tin-derbox, and as a result, the oilmarkets most likely will trade

higher. Now that HosniMubarak has resigned, thecountry could plunge intochaos with no organized lead-ership.

Saudi Arabia is rumored tobe pushing for an increase ofoil output at the OPEC(Organization of PetroleumExporting Countries) con-sumer meeting, with theintentions to put a cap on thisrally. Some suspect that theSaudis already are pumpingmore oil into the markets.

I personally believe thatgeo-political tensions willtrump any fundamentals inthe energy markets. Addition-ally, China is looking to fill itsnew oil reserves and couldgobble up any excesses.

The Chinese government’senergy policies are dominatedby its growing demand forcrude oil, and it relies heavilyon oil imports. With 1.3 bil-lion people and double-digitgrowth, China is one of thefastest growing economies in

the world. Its needs for ener-gy are projected to growthrough 2020.

China imports between 30and 60 percent of its oil. Ithas increasingly been depen-dent on Middle Eastern oil,and this thirst most likely willkeep prices on the rise.

John Hofmeister, the for-mer president of Shell, cer-tainly gained a lot of attentionin December when he saidAmericans could be paying $5a gallon for gas.

The media accidentallyforgot to report the time-frame for what John stated,but most do not think thatprices will be going to $5this year or even next.However, that price is a pos-sibility over the next five to10 years as world demandgrows.

Brian Hartman is GROW-MARK’s energy analyst. His e-mail address is bhart-man@growmark.com.

Brian Hartman

U.S. meat exports projected to continue climbBY DANIEL GRANTFarmWeek

U.S. meat exports posted adramatic turnaround in 2010as total beef shipmentsincreased 19 percent whilepork shipments grew by 3percent compared to 2009.

In fact, the value of U.S.beef exports last year ($4.08billion) broke the previousrecord of $3.86 billion set in

2003, priorto the dis-covery ofBSE in theU.S.

“We knewthe ground-work was inplace for anexcellent

recovery in 2010,” said PhilipSeng, president of the U.S.Meat Export Federation

(USMEF). “But even themost optimistic forecastsunderestimated the degree towhich our beef exportswould bounce back.”

Beef exports last year toSouth Korea and Russiadoubled compared to 2009while exports to HongKong and Taiwan set newvalue records of $158 mil-lion and $216 million,respectively. U.S. beefexports also set newrecords in the Caribbeanand Central-South Americaregions, USMEF reported.

Meanwhile, exports ofU.S. pork last year set newrecords in Australia, Japan,the Central-South Americaregion, and the Caribbean.

Meat exports picked uplast year as economiesimproved around the worldand the value of the U.S.dollar remained weak com-pared to other currencies.The weaker dollar made U.S.meat a good value in theworld market, according toRon Plain, ag economist atthe University of Missouri.

And the momentum ofAmerican meat exportsshould continue this year,despite the probability oftighter supplies and higherprices, Plain toldFarmWeek.

“We’re fairly optimisticabout pork and beef

exports in 2011,” he said.A major buyer could be

South Korea, which last yearbought 26 percent of itspork imports and 32 percentof its beef imports from theU.S.

“With foot-and-mouthdisease problems, the (SouthKorean) swine herd is downabout 30 percent,” Plainsaid. “There’s real potentialthey (South Korea) will buy alot of pork this year.”

Estimates suggest SouthKorea this year couldincrease its pork imports by

20 to 30 percent.However, strong world

demand for U.S. meat willpresent some challenges inthe states.

“There’s no question U.S.consumers will see higherprices in the meat case,”Plain said.

USDA recently predictedU.S. retail prices this yearwill increase 2.5 to 3.5 per-cent for beefand from 3.5to 4.5 per-cent forpork. Futurespricesrecently werenear $1.10per poundfor cattle and$1 per poundfor hog carcasses.

“We’re looking at proba-bly record prices for cattleand hogs this year,” Plainsaid. “But, we’re looking atrecord-high feed costs, so it’sgoing to take record live-stock prices to keep hog andcattle producers in theblack.”

The future direction offeed prices will be highlydependent on the quantityand quality of 2011 cropproduction, Plain added.

Ron PlainPhil Seng

PROFITABILITY

FarmWeek Page 11 Monday, February 21, 2011

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

�2010 crop: The recentbreak in corn looks like a cor-rection, but corn also is fightingwhat looks to be an increasinglynegative short-term picture inthe other two grains. While themarket has yet to show a sign ofa top, one has to remain mind-ful of the impact the 40-weeklow due in late March mighthave. At these prices, we’d rec-ommend you hold only “gam-bling bushels.” If you are hold-ing more, use rallies to makesales. Hedge-to-arrive (HTA)contracts for winter/springdelivery are still the best tool.

�2011 crop: New-crop salesshould stand at 30 percent com-plete. Even though a top still isnot apparent, December futuresare trading in a range withmajor price targets.

�Fundamentals: With theUSDA Outlook Forum onThursday and Friday, the focusmay shift to potential new-cropfundamentals. The 92 millionacres projected on the baselineforecast got the attention of thetrade. If weather would be rea-sonably good, that’s highenough to potentially build amore comfortable fundamentalstructure.Soybean Strategy

�2010 crop: The mostimportant short-term variable isnot the Chinese, but the SouthAmerican crops. Barring a sig-nificant port strike, the entranceof South American crops intothe world pipeline will rapidlydiminish our exports. Withouta weather problem, lower prices,not higher ones, are ahead.Wrap up sales now.

�2011 crop: If the SouthAmerican crops continue toimprove, South America threat-ens to keep its exports relativelylarge into the early part of ournew-crop year. Get sales up torecommendations. Plan toincrease them during planting,having 50 percent priced by ear-ly summer.

�Fundamentals: Chinaagain canceled some soybeanpurchases last week. That con-tinues to signal export demandwill soon shift from our shoresto South America. Brazilianharvest is said to be 9 percentcomplete, a little behind nor-mal. But, early plantings were alittle late this year. Weather

continues to remain generallygood for the Argentine crops,too.Wheat Strategy

�2010 crop: Even thoughthe recent break caused techni-cal damage, it’s still not certainthe short-term trend turneddown. A close below $8.50 onChicago May futures wouldlook ominous. Until then,prices have potential torebound back toward $8.91.Complete sales if you haveinventory. This market feelsexhausted. Because of thefutures carry, HTA contractsfor winter/spring delivery arestill the best marketing tool.

�2011 crop: Use ralliesabove $9 on Chicago July2011 futures to make catch-upsales. We’ve consideredadding to them, but don’twant to boost sales until thecrop breaks dormancy or thetrend turns down. If basis iswide on cash contracts, use aHTA contract.

�Fundamentals: Exportbusiness and weather supportedwheat on breaks last week.Export demand is coming fromcountries with precarious politi-cal structures that are wantingto build food reserves. Weathernews is focused on the South-ern Plains and China.

Since late fall, the holdings of“outside” investment moneywhat The Commodity FuturesTrading Commission (CFTC)swaps have been declining. The

Basis charts

group that holds positions forlong-term gains has been exitingthe market.

The big trading funds (CFTCclassification: managed money)have rebuilt long positions aftermodest liquidation in late 2010.But with each fund having amaximum it can own in eachmarket, there’s a chance theirlong positions might be close totheir ceiling.

It’s these trading funds youshould be most concerned aboutas their trading is determined bycomputer programs. Given thesize of their long positions,there’s not a lot to counter thesize of their selling if prices slipto the stops they hold on theirlong positions.

And if prices were to slip intostops on their long positions,there’s a significant risk grainprices could experience a hardliquidation break. That couldcause prices to have an unusuallyhard short-term break.

Cents per bu.

Investment money exiting grains

PERSPECTIVES

FarmWeek Page 12 Monday, February 21, 2011

LETTER TO THE EDITOR

There are about 70,000 farms inIllinois, a number that’s down by halfover several decades.

Despite the decline, we have builtthe most efficient farms in the worldand intend to keep it that way. Each

farm has its story, itsheritage. Let me sharemine.

In the summer of1861, 16-year-oldJemima Dickson pre-sented a locally madeflag to Lt. Alan Varnerat a town ceremony.The lieutenant, latercompany captain, waspart of the newly

formed Company D of the 25th Illi-nois Volunteer Infantry. That flag,Captain Varner, and the 25th Infantrywould see action at Shiloh andChickamauga, among other Civil Warvenues.

We have no contemporary photoof Jemima, as we do of the dashingyoung officer. Was she beautiful?Clearly our captain thought sobecause a correspondence, and then amarriage that lasted into the 20th cen-tury, ensued between the people whowere my great-great-grandparents.

Some 80 years later, another Lieu-tenant Varner, their great-grandsonand my father, would see action in theBattle of Leyte Gulf and South Chinaduring World War II. Does historyrepeat itself?

My father’s term of service was forthe duration of the war. Fortunatelyfor me, he married mom just a fewdays before shipping out. It was dif-ferent in the 1860s, in the midst ofthe Civil War. My great-great-grandfa-ther and the other soldiers of the25th Illinois signed on for three years.

With the war still raging, they weremustered out during the summer of1864 and my great-great-grandfatherwas able to return home and marryJemima. Their first of five children,Jacob, my great-grandfather, was bornin 1867.

With the approaching sesquicen-

tennial of the Civil War, stories liketheirs will soon be in vogue. So letJemima and Alan’s be one of the first.

My great-great-grandparents builtVarner Farms together. We may thinkthat our pioneer ancestors simplystumbled onto our flat and fertileground. The truth is they had to cre-ate what we have today.

Our flat land was naturally riddledwith depressions. That means peskywillow and cottonwoods, standingwater mosquitoes, and disease.

Jemima’s 1927 obituary tells us,“That due to poor drainage and sani-tation, malaria, flu, typhoid, and otherdiseases were common ... Theydrained the land as best they couldwith surface drainage and under-ground ditches made with a moledrilling machine ...”. — whatever thatmight be.

The prairie sod was turned over forthe first time, no doubt, by a JohnDeere steel plow invented in 1837.Proper drainage is a constant battle.We have spent thousands of dollars inrecent years improving drainage andthus the quality of the land. Mercifully,machines now do the work that usedto break backs.

“The country was sparsely settled,”we are told in the obituary. “Deer,prairie chickens, turkeys, wolves, foxes,and other wild animals abounded.”That part seems romantic, at least tous.

“Success required much physicaland mental strength and this was pos-sessed to an unusual degree by bothCaptain and Mrs. Varner.” They begantheir life in a log cabin and later built asubstantial brick house, which is nolonger there, though I do remember it.

Now after our sentimental journey,let’s get down to business. Even largefarms are small businesses, and theseIllinois family farms lead the world inagricultural efficiency. Keeping it thatway requires public education on theissues and continued partnership with(gulp) government to keep the sealanes of free trade open and, on occa-sion, give financial support.

Big and efficient are not the same.Studies indicate that the family farmor the partnership of several familiesis the peak of efficiency. Large, corpo-rate mega-operations are not in ourbest interest.

If peak efficiency is to be main-tained, improved technology will allowfarm size to gradually grow, but thefamily unit will remain at the center.

Business theory next tells us that ina very competitive environment theefficient will survive and the weak willdrop out. This is not always the case.Farming, I believe, is an exception tothis general rule.

Employees with State Farm Insur-ance Cos. or the State of Illinois enjoya steady income. In farming, incomeand prices swings are radical. There isno end to years of feast and famine,fat and lean.

Survivors of the famine years arenot so much the efficient, but thosewho can endure loss the longest.They are the mega-corporate opera-tions. Taxpayer support preservesmany efficient family farms in famineyears.

In spite of higher fertilizer andseed prices, times are good right nowfor Varner Farms, and governmentpayments were just 2.7 percent ofincome last year — much of that inConservation Reserve Program pay-ments.

But in 2000, when many weremaking a killing on Wall Street, it wasfamine on the farm. I sold one load ofcorn for $1.53 per bushel, a price Icould have gotten in 1918. (We aregetting more than $5 today.)

Government support was 24 per-cent of what we took in. VarnerFarms survived that, and the nextfamine year of 2005, but other equallygood operations did not.

That is today’s lesson: a romanticCivil War story, a bit of Illinois histo-ry, and some business theory.

Carson Varner is a professor of finance, insur-ance, and law at Illinois State University, Nor-mal. His e-mail address is cvarne2@ilstu.edu.

CARSONVARNER Letter policy

Letters are limited to 300 words and must include aname and address.

FarmWeek reserves the right to reject any letter andwill not publish political endorsements.

All letters are subject to editing, and only an originalwith a written signature and complete address will beaccepted. A daytime telephone number is required forverification, but will not be published.

Only one letter per writer will be accepted in a 30-day period. Typed letters are preferred.

Send letters to:FarmWeek Letters1701 Towanda Ave.

Bloomington, Ill., 61701

Says organic farming provides solutionsEditor:

The word limit permits me to comment on only afew aspects of two articles in the Jan. 24 FarmWeek(p. 4 and 7) on the recent Illinois Fertilizer and Chemi-cal Association (IFCA) convention.

The first article reports on possible solutionsoffered by panelists to high nitrogen and phosphorouslevels in Illinois surface waters. In general, they sug-gested more study and analysis. But not the obvioussolution: a large decrease in the use of synthetic nitro-gen and phosphorous fertilizers. I say act now by tran-sitioning industrial agriculture to family organic farm-ing.

The second article reports on a speech by LeonardGianessi, director of the Crop Protection ResearchInstitute, at the same convention. The article reportsthat there is “one clear solution for feeding more peo-ple (in the U.S.) in the future,” which Mr. Gianessi saysit to “produce more crops/food per acre.”

There are other approaches: e.g., reduce the greatwaste of food, including many people eating too manycalories; grow more primary food and less, as an exam-ple, corn for ethanol and sweeteners; and replacemuch dietary animal protein with plant protein.

Mr. Gianessi credits the introduction of hybridiza-tion, fertilizer, and pesticides with the large increasein corn yield since 1935. Classical plant breeding,including hybridization, has been important. Butcorn yield has also increased on organic farms —without synthetic fertilizers and pesticides.

He also claims that new technology saves the soiland reduces fossil fuel use. But not compared toorganic farming, which is better in both regards.

Also, how long will his highly touted no-till per-form with the increasing prevalence of herbicide-resistant weeds?

Finally, the use of synthetic fertilizers and pesti-cides is not sustainable because the natural resources(e.g., fossil fuels, and phosphate and potassiumrocks) are finite and declining. HERMAN BROCKMAN,Congerville

AA lloovvee ssttoorryy

‘I’m a finalist for Extreme Farm Makeover.’

Civil War romance supplies rootstock for farm family