16
Periodicals: Time Valued Monday, June 28, 2010 Two sections Volume 38, No. 26 FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau ® on the web: www.ilfb.org THE ILLINOIS STATE Board of Education last week agreed to cut about $300 million from its budget, including the entire ag education line item. ........3 JIM DEAL, a retired McLean County farmer from Danvers, recreates old-time farm machinery and wagons, barns, and corn cribs from wood. ....................................12 THE AMERICAN COALI- TION for Ethanol is challenging a tentative Environmental Protection Agency delay in approval for the 15 percent ethanol blends. ..................4 Ag budget integrity crucial Nelson: Ag groups seeking varied policy goals BY MARTIN ROSS FarmWeek A House Ag Committee panel last Thursday puzzled over “how we can write a farm bill for less money that’s focused on programs that will cal differences between the (House) panel members, Farm Bureau, Farmers Union, barley producers, corn and soybean producers. It’s going to be a challenge to get all this into one package.” For example, Nelson urged simplification of ACRE in the next farm bill: “It’s very com- plicated; it’s very onerous to get through the paperwork.” But while IFB favors mov- ing toward a county rather than the current state ACRE yield trigger, he noted many Mississippi producers with no major crop production history must use default “plug yields” that fall below actual county yields. The American Soybean Association’s Rob Joslin suggested ACRE “may be a better choice for producers in the largest soybean- growing states than the traditional farm program.” Joslin argued revenue guarantees provided under ACRE “can be strengthened and modified to make it more attractive in regions of the country where par- ticipation is low.” At the same time, Nelson noted concerns voiced before the subcommittee that poten- tially higher payouts resulting from use of county triggers could raise World Trade Orga- nization (WTO) domestic sub- sidy compliance issues. Nelson and others were emphatic about the pitfalls of borrowing from one ag pro- gram to fund another. USDA’s Risk Management Agency (RMA) already plans to transfer crop insurance funding to conservation or other USDA-administered programs under its new stan- dard reinsurance agreement (SRA). Nelson noted federal budget baselines for many programs have decreased since passage of the last farm bill, while more See Nelson, page 4 benefit producers,” Illinois Farm Bureau President Philip Nelson reported. According to Nelson, who testified before the Subcom- mittee on General Farm Com- modities and Risk Manage- ment, ag interests presented a broad diversity of potential pieces for lawmakers to assemble into a 2012 farm bill. At the Capitol Hill hearing, Nelson promoted the Ameri- can Farm Bureau Federation’s five “farm bill principles” — fiscally responsible” policy options; adherence to the 2008 farm bill’s basic funding struc- ture; farm bill benefits for all ag sectors; consideration of global trade rules in develop- ing new policy; and respect for “the stable business environ- ment that is critical to success in agriculture.” “Ultimately, subcommittee members expressed a lot of concerns as to how current risk management products are working from the perspective of a farmer,” Nelson told FarmWeek. “That dealt with everything from direct payments to the ACRE (average crop revenue election) program to the SURE (supplemental revenue) disaster program. “Opinions were all over the board: There were philosophi- Tax credit delay threatens ‘new’ biodiesel It’s touted as the answer to a variety of economic and environmental challenges, offering farmers a winter cov- er crop with high oil content, and a new crop that doesn’t compete for corn or soybean acres. But pennycress’ potential as a biodiesel feedstock rides largely on extension of the fed- eral biodiesel blenders tax cred- it. Senate Majority Leader Har- ry Reid (D-Nev.) Thursday fell three votes short of approval for a measure that would have expedited a vote on the credit and other tax extenders. National Biodiesel Board officials thus met with Senate Ag Chairman Blanche Lincoln (D-Ark.) in hopes of finding a way to renew the $1-per-gallon they (lenders) really want to see where the (profit) margins are going to come from.” According to BMI, penny- cress could generate 115 gal- lons of biodiesel per acre plus “bio-oils” that could be used for heating, power, or motor fuels. BMI is continuing a regional pennycress production program while selling oil to a few fuel/industrial manufactur- ers. However, amid a “soft to non-existent” biodiesel sector, “we only plant as many acres as we can sell,” Johnsen said. “We have growers who really want to expand, and we’re telling them, ‘We’re not sure we can commit to that, because where are we going to put it?’,” he related. — Martin Ross blender’s credit, which expired Dec. 31. Lincoln supports a measure that would extend the incentive for five years, possibly as an element of forthcoming energy legislation. Credit expiration has hurt both existing biodiesel plants and prospective new producers such as Peoria-based Biofuels Manufacturers of Illinois (BMI). BMI’s planned 45-mil- lion-gallon-per-year biodiesel production facility has been sit- ed and permitted, but BMI’s Peter Johnsen reported plant financing as well as long-term pennycress production plans effectively are in limbo until Congress acts. Johnsen told FarmWeek biodiesel credit extension pos- es “larger implications for next generation/advanced genera- tion fuels” needed to fulfill long-range biofuels require- ments under the federal renewable fuels standard (RFS2). “We need this if we’re going to try to develop a policy to move to renewables, with a 2010 (RFS2) requirement of 1.12 billion gallons of biodiesel,” he said. “It’s just not congruent if (Congress) won’t build a tax policy around an energy poli- cy. It’s not going to happen. “Capital investment and the current price of petroleum diesel are such that these pro- jects just don’t get off the ground. This is just as much a lender issue for us as it is a practical operational aspect — Illinois Farm Bureau President Philip Nelson represented Farm Bureau last week at a U.S. House Ag subcommittee hearing on the farm bill. Commit- tee Chairman Collin Peterson (D-Minn.) said the next farm bill may in- clude reduced payments in order to meet deficit targets, but Nelson held the basic structure of the 2008 bill should be maintained even if overall funding is cut. (Photo courtesy American Farm Bureau Federation) FarmWeekNow.com See video of President Nelson’s testimony on the 2012 farm bill at FarmWeekNow.com.

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Page 1: FarmWeek June 28 2010

Per

iod

ical

s: T

ime

Val

ued

Monday, June 28, 2010 Two sections Volume 38, No. 26

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

T H E I L L I N O I S S TA T EBoard of Education last weekagreed to cut about $300 millionfrom its budget, including theentire ag education line item. ........3

JIM DEAL, a retired McLeanCounty far mer from Danvers,recreates old-time farm machineryand wagons, barns, and corn cribsfrom wood. ....................................12

THE AMERICAN COALI-TION for Ethanol is challenging atentative Environmental ProtectionAgency delay in approval for the 15percent ethanol blends. ..................4

Ag budget integrity crucial

Nelson: Ag groups seeking varied policy goalsBY MARTIN ROSSFarmWeek

A House Ag Committeepanel last Thursday puzzledover “how we can write afarm bill for less money that’sfocused on programs that will

cal differences between the(House) panel members, FarmBureau, Farmers Union, barleyproducers, corn and soybeanproducers. It’s going to be achallenge to get all this intoone package.”

For example, Nelson urgedsimplification of ACRE in thenext farm bill: “It’s very com-plicated; it’s very onerous toget through the paperwork.”

But while IFB favors mov-ing toward a county ratherthan the current state ACREyield trigger, he noted manyMississippi producers withno major crop productionhistory must use default“plug yields” that fall belowactual county yields.

The American SoybeanAssociation’s Rob Joslinsuggested ACRE “may be abetter choice for producersin the largest soybean-growing states than thetraditional farm program.”

Joslin argued revenueguarantees provided underACRE “can be strengthenedand modified to make itmore attractive in regionsof the country where par-

ticipation is low.”At the same time, Nelson

noted concerns voiced beforethe subcommittee that poten-

tially higher payouts resultingfrom use of county triggerscould raise World Trade Orga-nization (WTO) domestic sub-sidy compliance issues.

Nelson and others wereemphatic about the pitfalls ofborrowing from one ag pro-gram to fund another.

USDA’s Risk ManagementAgency (RMA) already plansto transfer crop insurancefunding to conservation orother USDA-administeredprograms under its new stan-dard reinsurance agreement(SRA).

Nelson noted federal budgetbaselines for many programshave decreased since passage ofthe last farm bill, while more

See Nelson, page 4

benefit producers,” IllinoisFarm Bureau President PhilipNelson reported.

According to Nelson, whotestified before the Subcom-mittee on General Farm Com-modities and Risk Manage-

ment, ag interests presented abroad diversity of potentialpieces for lawmakers toassemble into a 2012 farmbill.

At the Capitol Hill hearing,Nelson promoted the Ameri-can Farm Bureau Federation’sfive “farm bill principles” —fiscally responsible” policyoptions; adherence to the 2008farm bill’s basic funding struc-ture; farm bill benefits for allag sectors; consideration ofglobal trade rules in develop-ing new policy; and respect for“the stable business environ-ment that is critical to successin agriculture.”

“Ultimately, subcommitteemembers expressed a lot ofconcerns as to how currentrisk management products areworking from the perspectiveof a farmer,” Nelson toldFarmWeek.

“That dealt with everythingfrom direct payments to theACRE (average crop revenueelection) program to theSURE (supplemental revenue)disaster program.

“Opinions were all over theboard: There were philosophi-

Tax credit delay threatens ‘new’ biodieselIt’s touted as the answer to

a variety of economic andenvironmental challenges,offering farmers a winter cov-er crop with high oil content,and a new crop that doesn’tcompete for corn or soybeanacres.

But pennycress’ potential asa biodiesel feedstock rideslargely on extension of the fed-eral biodiesel blenders tax cred-it. Senate Majority Leader Har-ry Reid (D-Nev.) Thursday fellthree votes short of approvalfor a measure that would haveexpedited a vote on the creditand other tax extenders.

National Biodiesel Boardofficials thus met with SenateAg Chairman Blanche Lincoln(D-Ark.) in hopes of finding away to renew the $1-per-gallon

they (lenders) really want to seewhere the (profit) margins aregoing to come from.”

According to BMI, penny-cress could generate 115 gal-lons of biodiesel per acre plus“bio-oils” that could be usedfor heating, power, or motorfuels. BMI is continuing aregional pennycress productionprogram while selling oil to afew fuel/industrial manufactur-ers.

However, amid a “soft tonon-existent” biodiesel sector,“we only plant as many acres aswe can sell,” Johnsen said. “Wehave growers who really wantto expand, and we’re tellingthem, ‘We’re not sure we cancommit to that, because whereare we going to put it?’,” herelated. — Martin Ross

blender’s credit, which expiredDec. 31. Lincoln supports ameasure that would extend theincentive for five years, possiblyas an element of forthcomingenergy legislation.

Credit expiration has hurtboth existing biodiesel plantsand prospective new producerssuch as Peoria-based BiofuelsManufacturers of Illinois(BMI). BMI’s planned 45-mil-lion-gallon-per-year biodieselproduction facility has been sit-ed and permitted, but BMI’sPeter Johnsen reported plantfinancing as well as long-termpennycress production planseffectively are in limbo untilCongress acts.

Johnsen told FarmWeekbiodiesel credit extension pos-es “larger implications for next

generation/advanced genera-tion fuels” needed to fulfilllong-range biofuels require-ments under the federalrenewable fuels standard(RFS2).

“We need this if we’re goingto try to develop a policy tomove to renewables, with a2010 (RFS2) requirement of1.12 billion gallons ofbiodiesel,” he said.

“It’s just not congruent if(Congress) won’t build a taxpolicy around an energy poli-cy. It’s not going to happen.

“Capital investment and thecurrent price of petroleumdiesel are such that these pro-jects just don’t get off theground. This is just as much alender issue for us as it is apractical operational aspect —

Illinois Farm Bureau President Philip Nelson represented Farm Bureau lastweek at a U.S. House Ag subcommittee hearing on the farm bill. Commit-tee Chairman Collin Peterson (D-Minn.) said the next farm bill may in-clude reduced payments in order to meet deficit targets, but Nelson heldthe basic structure of the 2008 bill should be maintained even if overallfunding is cut. (Photo courtesy American Farm Bureau Federation)

FarmWeekNow.comSee video of President Nelson’stestimony on the 2012 farm billat FarmWeekNow.com.

Page 2: FarmWeek June 28 2010

ASIAN CARP FOUND — A commercial fishermancaught an Asian carp last week in Lake Calumet, sparkingrenewed interest in closing the shipping locks that link theIllinois River and Lake Michigan.

“A few isolated incidents of Asian carp in this small sec-tion of the Illinois Waterway does not mean existing barriershave failed,” said Mark Biel, executive director of the Chem-ical Industry Council of Illinois and member of the UnLockOur Jobs Coalition, which includes Illinois Farm Bureau.

The coalition seeks to protect the waterway connectionbetween the Great Lakes and the Mississippi River.

Biel noted the U.S. Fish and Wildlife Service has identi-fied 21 opportunities that could allow Asian carp to existnorth of an electronic barrier separating the river and lakesystems.

However, Michigan lawmakers and environmental groupsthreatened to take more legal action to permanently closethe shipping locks.

Michigan was one of six Great Lakes states that sued Illi-nois in December to close the locks. Illinois fought back,saying it would cause economic devastation, and the U.S.Supreme Court decided not to hear the case.

PUMPED UP — Ethanol producers are pumped byapprovals for equipment aimed at promoting biofuels diver-sity.

Underwriters Laboratory (UL) last week issued safety cer-tifications to both the Gilbarco Veeder-Root Encore E85(85 percent ethanol) and Dresser Wayne Ovation Eco fuel-ing E85 dispensers. These pumps are now certified andapproved for dispensing any range of fuel ethanol from 0percent through E85.

The industry is pushing installation of so-called “blenderpumps” that give consumers a choice of fuels based on costand mileage considerations.

Final UL certification of both fuel dispensers “representsa significant step in expanding our national effort to providehigher-level blends of ethanol directly to consumers,” saidTom Buis, CEO of the industry coalition Growth Energy.

“We anticipate a more rapid expansion in the number ofhigher-blend fueling facilities across the nation,” he said.

RISKY BUSINESS RESOLVED? — Senate Agricul-ture Committee Chairman Blanche Lincoln (D-Ark.) credit-ed common sense in House-Senate negotiators reaching acompromise on her proposal to force banks to spin offswap trading derivatives operations, allowing them to retainthe bulk of their books but barring them from trading com-modities.

The plan agreed to last week as part of a final financialreform package was not as sweeping as her original propos-al, instead narrowing the focus to derivatives seen as riskierthan interest rate and foreign exchange swaps that make upnearly 90 percent of the global swaps market.

“Quite frankly, common sense prevailed,” Lincoln said.“Our objectives were to get the risky stuff out of banks. Wefigured out how to do that.”

FarmWeek Page 2 Monday, June 28, 2010

(ISSN0197-6680)

Vol. 38 No. 26 June 28, 2010

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.

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Quick TakesIFB IN ACTION

IFB board visits northern neighborMichigan: more diverse ag, similar woes

BY CHRIS MAGNUSONLess than an hour after

crossing the Illinois state line,Illinois Farm Bureau boardmembers were in a state with amuch more diverse mix offarm production.

The IFB board visitedMichigan to meet with theMichigan Farm Bureau Boardof Directors and to learnabout that state’s agricultureand the challenges it faces.

“It was a good trip. We saweverything from grapes andwine-making to various typesof other fruit, vegetables,green house nurseries, andflowers,” said IFB PresidentPhilip Nelson.

“It is a state we work close-ly with on the delegate floor atAmerican Farm Bureau Feder-ation.”

Michigan agriculture pro-duces more than 100 com-modities, second only to Cali-fornia. The state is the largestproducer of blueberries, tartcherries, Niagara grapes, andseveral varieties of dry beans.

Dairy products, green-

house/nursery, and corn arethe largest commodities interms of gross receipts.

Sandy soils and moderateclimate near the shores ofLake Michigan make it con-ducive for fruit and vegetableproduction.

One of the stops includedTabor Hill Winery, which be-came the first winery in theupper Midwest in 1967.

Now more than 32 winer-ies are located in Michigan,making it one of the fastest-growing agriculture industriesthere.

Other fruit growers haveembraced agritourism with U-pick operations. Tree-MendusFruit Farm attracts urban visi-tors from Chicago, Indianapo-lis, and Detroit to pick apples,apricots, blueberries, and cher-ries.

Owner Herb Teichman hasbeen a frequent guest ofWGN’s Orion Samuelson overthe years, and the farm ishome to the annual Interna-tional Cherry-Pit SpittingChampionship.

“The stop at Herbruck’swas worth the trip all by it-self,” said Nelson. Herbruck’sPoultry Ranch is home to 3million laying hens.

Herbruck’s, the 12th largestegg producer in the country,has three Michigan locationsand also produces cage-freeand organic eggs.

In fact, it is the largest or-ganic egg producer in thecountry, selling organic eggsfor three times the cost ofconventionally produced eggs.

“One of our customers in-spects our operation severaltimes a year,” said Steve Her-bruck, one of the operation’sowners.

“We pay a great deal of at-tention to ensure we minimizeenvironmental impact andmeet the social expectations ofour customers.”

Michigan recently imple-mented legislation to increasecage sizes for laying hens. Eggproducers have 10 years to im-plement the new standards.

Michigan’s Berrien CountyFarm Bureau President EdKretchman indicated immigra-tion reform and water usageare issues facing fruit and veg-etable growers in southwestMichigan.

Despite the differences, onearea Illinois and Michiganhave in common is a difficultbudget situation.

“Our Michigan Depart-ment of Agriculture budget isabout 50 percent of what itwas a few years ago,” statedMichigan Farm Bureau Presi-dent Wayne Wood.

Chris Magnuson is executive di-rector of Operations, News andCommunications.

Larry Leach, in foreground, discusses his hydroponic tomato operation with Illinois Farm Bureau board membersJ.C. Pool, Steve Hosselton, Wayne Anderson, and Chris Hausman during a recent IFB board trip to Michigan.

Illinois Farm Bureau board members David Meiss, left, and SteveHosselton watch an automated process at Herbruck’s Farm in Michiganin which cracked egg shells are detected. (Photos by Chris Magnuson)

Page 3: FarmWeek June 28 2010

STATE

FarmWeek Page 3 Monday, June 28, 2010

Ag ed new victimof state budget cuts BY KAY SHIPMANFarmWeek

The Illinois State Board of Education (ISBE) last weekagreed to cut about $300 million from its budget, including theentire ag education line item.

“Ag education has done everything right — been accountablefor every dollar,” said Jim Craft, Illinois FFA executive secretary.“We’re used as a role model (for other education programs), andthen we get our legs cut out from under us.”

ISBE was forced to make budget cuts because it needed themoney to access federal funding that supplements state educa-tion dollars for certain programs, such as career and technicaleducation, Matt Vanover, ISBE spokesman, told FarmWeek.

The federal government requires states to not reduce spend-ing on those programs to be eligible for federal funds, heexplained.

“We had to take money that was set aside for other purposesto meet the mandated federal (funding) effort,” Vanover said.

This year, the General Assembly passed a lump-sum educa-tion budget that was down by $480 million from the previousyear’s budget, including a $150-million cut to grants, which coverthe ag ed line item, Vanover noted.

“The state budget crisis continues to deteriorate. The latestaction regarding the agricultural education program is disturb-ing,” said Illinois Farm Bureau President Philip Nelson.

About 40 percent of the $3.043 million in ag ed funding goesdirectly to about 320 local ag ed programs that meet high-qualitystandards. Each program received an average of $3,000, accord-ing to Craft.

Funding also supports the Facilitating Coordination in Agri-cultural Education (FCAE) staff and development of innovativeag-based curricula and teaching resources that follow the stategoals for learning.

Funds also went to teach not only ag educators, but alsoteachers of many subjects and grade levels how to use thoseresources.

“We are engaged in talking to key budget decision-makersabout the agricultural education funding elimination and othercrucial agricultural programs that rely on state funding,” IFB’sNelson said.

Ag educators estimated the funding elimination would impactabout 468,000 elementary students, 29,000 elementary teachers,nearly 30,000 high school students, about 400 high school teach-ers, 95 county ag literacy coordinators, and 2,796 ag literacy vol-unteers.

The ag education community launched an information cam-paign to inform state legislators “what that (budget cut) decisionwill mean,” Craft said.

Last week, the ISBE also directed State School Superinten-dent Christopher Koch to write Gov. Pat Quinn and the GeneralAssembly requesting the release of additional funding for pro-grams, Vanover said.

The state faces an estimated $13 billion budget deficit.

The Illinois Agriculture Departmentof Agriculture (IDOA) last week becamethe state’s greenest agency — literally.

Employees with Designed RoofingSystems Inc., Springfield, installed traysof sedum onthe roof ofIDOA head-quarters atthe IllinoisState Fair-grounds,Springfield.

It is Illinois’ first “green” roof on astate-operated building, according toDavid Blanchette, the Capital Develop-ment Board (CDB) spokesman. CDB isoverseeing the project.

Two-by-2-foot trays that are fourinches deep were planted with 22,000

square feet of sedum and hoisted by acrane to the roof ’s upper central sec-tion.

The plants are expected to reta inas much as 75 percent of s tor m water

r unoff.The $1 .8

mi l l ionprojectinc ludedrepairs ofthe bui ld-ing ’s leaky

roof and the addi t ion of a roof ingmembrane.

The g reen project not onlyinc ludes rooftop plants but a lso therecyc l ing of 40 tons of meta l f romold solar panels that had been on theroof. — K ay Shipman

Taking root

IDOA goes green with rooftop planters

Bruce Yoakum, an employee of Designed Roofing Systems Inc., Springfield, readies a tray plantedwith sedum for installation on the Illinois Department of Agriculture roof at the Illinois State Fair-grounds. The white roof of the rodeo arena is visible in the distance on the far right. The plants willhelp retain storm water runoff, improve air quality, and reduce utility costs. (Photo by Ken Kashian)

‘Broadband is the new electricity’ — Rural Utilities chief High-speed Internet service

is essential for rural Americatoday, much like electricity wasin the 1930s. The federal gov-ernment’s role is to enticedevelopment of broadband ser-vices with grants and lower-costloans, the administrator ofUSDA’s Rural Utilities Servicesaid.

Officials with USDA and theU.S. Department of Commerce(DOC) met last week in Chica-go with project representativeswho were selected to sharesome of the $7.2 billion in fed-eral stimulus dollars.

“Today, broadband is thenew electricity,” said JonathanAdelstein, Rural Utilities admin-istrator, in an appearance last

week on RFD Today. “Rural areas are more expen-

sive to serve because there arefewer customers for the samefixed costs — all for a smalleramount of revenue,” Adelsteinsaid.

The market “is failing to pro-vide a service that is essentialfor rural communities ... Thereis a role for government in

making sure that we get it(broadband) out to all parts ofthe country.”

Adelstein noted rural com-munities are missing out onpotential economic develop-ment because businesses wantbroadband as well as water andother services. Broadband alsooffers distance learning,telemedicine, and other services

to rural residents, he added.Broadband projects selected

for federal funds in the firstround plan to use an array oftechnologies, including wirelessand cable systems.

“Hopefully, we’ll develop aninnovative model,” Adelsteinsaid. “We’ll be able to come upwith best management practicesso small rural communities of

tomorrow will be able to lookat them and pick the best ofthem.”

Adelstein said he was hope-ful the next round of selectedprojects would be announced inJuly and all projects would beselected by August.

The Illinois BroadbandDeployment Council hashelped with projects around thestate. The state has committedto help fund some projects ifthey are selected to receive fed-eral stimulus funding.

Earlier this year, a NorthernIllinois regional project, knownas the DeKalb Advancement ofTechnology, was selected toreceive $11.8 million in federalfunds. — Kay Shipman

‘Hopefully, we’ll develop an innovative model.We’ll be able to come up with best manage-ment practices.’

— Jonathan AdelsteinUSDA Rural Utilities Service administrator

Page 4: FarmWeek June 28 2010

GOVERNMENT

FarmWeek Page 4 Monday, June 28, 2010

‘Pivotal year’ for biofuels

EPA delay confounds ethanol industryBY MARTIN ROSSFarmWeek

Brian Jennings sees 2010 asa “pivotal year” for ethanol,with much of the industry’sfuture turning on the U.S.Environmental ProtectionAgency’s (EPA) ruling on E15.

Jennings’ American Coali-tion for Ethanol (ACE) chal-lenged a tentative EPA delay inapproval for the 15 percentethanol blends. Ethanol inter-ests appealed to PresidentObama following word thatthe agency planned to post-pone a decision regarding mid-

set,” Jennings said. “But it’s hard to know exact-

ly what’s going on in theirminds, and they haven’t beenreturning calls. There’s been alot of research at the universitylevel; there’s been a lot ofresearch by other entities. Allthat data has been provided toEPA.”

ACE serves as a clearing-house for mid-level blendresearch. Neither universitynor U.S. Department of Ener-gy scientists have discoveredanything that would challengeE12 or E15 safety or perfor-

mance, Jennings said.As the administration grap-

ples with the Gulf oil spill, hefinds it “bizarre” EPA woulddelay a decision promoting bio-fuels “rather than speeding itup.”

Given delays in extending thebiodiesel blenders tax credit (seeaccompanying story), he is con-cerned about congressionalrenewal of a 45-cent-per-gallonethanol credit set to expire Jan. 1.

“The painful lesson ofbiodiesel is something we wantto avoid at all costs,” hestressed.

level blends until at least Sep-tember, under potentially pro-hibitive terms.

Jennings argued EPA’sreported consideration of adual, two-tiered E15 approval— initially for model-year 2007and newer vehicles, with even-tual clearance for cars pro-duced after 2001 — “clearlyrepresents a step backwards.”

EPA “wasn’t incredibly clearwith us” regarding its originaljustification for a 2001 vehiclethreshold, he related. It hasoffered no explanation for itsnewest proposal, which would

limit E15 use to “a tiny slice ofthe cars out there,” Jenningstold FarmWeek.

He noted 2007 vehicles were“practically fresh off theassembly line” when the datawas submitted proving blendsbeyond E10 are safe for allvehicles. Since then, he charged,“two years and millions of dol-lars have been wasted as EPAdefends the status quo.”

“I almost get the impressionthey’re (EPA officials) comingup with some of their owndata needs beyond what theytold us they needed at the out-

Biofuels leaders: Drilling ban not route to oil independence While biofuels producers

aim to reduce American petro-leum dependence, industryleaders argue a ban on domes-tic oil development is not thebest route to energy balance.

Oil is “on our horizon formany years to come,” despitecurrent “saber-rattling” inWashington, stressed MikeBryan, chairman of the ethanolindustry group BBI Interna-tional, during a recent ethanolconference in St. Louis.

The question is “where ourfuture oil is going to comefrom,” he said, calling forexpanded U.S. oil explorationas well as “dynamic andaggressive” renewable fuelsdevelopment focusing on fueleconomy, research into newmarkets, and heightened pro-duction of flex-fuel vehicles.

“No one in this room isnaïve enough to believe Ameri-ca is going to stop using oiltoday, tomorrow, or any time

in the near future,” nationalRenewable Fuels AssociationPresident Bob Dinneen toldindustry representatives.

“That should not deter usfrom aggressively proceedingwith efforts to develop anddeploy a wide range of ethanoltechnologies you in this roomare developing. The lesson ofthe tragedy in the Gulf neednot be that America stopdrilling. Rather, it must be thatwe need not drill at all if weempower the people in thisroom to do their job.”

In light of the Gulf spill,Dinneen emphasized the needto “redouble our effortstoward plant safety and com-pliance before troubles occur.”

Industry consultants under-lined the need for regulatorycompliance to ensure not onlycommunity safety but alsocontinued operations by trou-bled plants. Analyst Britta Berg-land sees compliance key in resale

of closed or near-bankruptplants, arguing “you never wantto come into a facility that’sattached to bad perceptions.”

“Non-compliance these daysis just an unacceptable expo-sure,” said Trevor Hinz withindustry consulting firm ICM.

The industry also is chip-ping away at production costs,in part to make ethanol pumpprices more attractive. Tech-nology provider Novozymeshas unveiled a new enzymethat reportedly could boostper-bushel ethanol yields bymore than a percent and save a“typical” plant $1 million ormore per year.

Novozymes Global Head ofBiofuels Poul Ruben Andersensees the ethanol industry “reallycoming back.” “We certainly seegreat potential for furtherimprovements, and we will con-tinue to develop more efficientenzyme systems,” Andersen toldFarmWeek. — Martin Ross

Renewable energyheightened priority

Faced with a major spill in the Gulf, the Obama administra-tion last week laid out a new “roadmap” charting renewableenergy as “a national priority.”

Ag Secretary Tom Vilsack, co-chairman of the president’sBiofuels Interagency Working Group, argued domestic renew-able energy production “will create quality American jobs, com-bat global warming, reduce fossil fuel dependence, and lay astrong foundation for a strong rural economy.”

A new USDA report outlines a plan to develop regionalstrategies to boost biofuels production, marketing, and distrib-ution. The federal renewable fuels standard mandates U.S. useof 36 billion gallons of biofuels per year by 2022.

Vilsack said he was “confident that we can meet this thresh-old,” but stressed need for investment in feedstock researchand development, sustainable production/management sys-tems, better conversion technologies, and high-value “bioprod-ucts.”

“While corn-based ethanol production will remain impor-tant to America’s producers, we are also gearing up researchefforts to assist growers of advanced biofuels to produce ener-gy from new feedstocks on a regional basis and in an environ-mentally sustainable manner,” he said.

Collins: ACRE inadequate substitute for insuranceEven a new, improved

ACRE can’t replace currentproducer crop insurance pro-tections, former USDA chiefeconomist Keith Collins toldFarmWeek last week.

National Crop InsuranceServices (NCIS) President BobParkerson noted speculationthat cutbacks in federal cropinsurance spending may bedirected in part at promotingrevenue-based farm paymentsas an eventual substitute forprivate insurance. “There issome major concern,” he said.

One focus of early 2012farm bill discussions is possibleretooling of ACRE (the aver-age crop revenue election pro-gram) to provide greater indi-vidual protection. ACRE guar-antees are based on nationalprices and state yields; lawmak-ers are eyeing proposals tomove to county yields.

Collins, who helped NCIS ana-

already may purchase grouprisk income protection policies— another target for USDA’sRisk Management Agency(RMA), Collins said.

RMA has discontinuedGRIP availability in a numberof counties across the U.S.because of low participationand, according to Collins, chal-lenges in developing necessarycounty yield data.

Beyond that, Parkerson toldFarmWeek ag lenders increas-ingly will be wary of extending

individual credit based on “whatwould happen on a county basis.”

The NCIS president was con-cerned that in “multiple hearings”to date on the new farm bill,House and Senate ag committeeshave failed to invite testimonyfrom insurance industry leaders.

“At some point, given (insur-ers’) burden of delivery and theburden of sharing the risks andthe costs of this program, some-body’s going to say, ‘Maybe weought to hear from this crowd,’”he suggested. — Martin Ross

lyze a new standard reinsuranceagreement (SRA) (see page 5), not-ed farmers have a vested interest incrop insurance. They, therefore,more likely will make “active riskmanagement decisions” on thetypes and levels of protection theyneed than they might under afarm program, Collins said.

The economist insists ACREand crop insurance are “funda-mentally different” options.

“Can ACRE substitute forcrop insurance?” Collins posed.“Can a ‘free’ farm programsubstitute for a risk manage-ment program a farmer has skinin the game with and pays for?The philosophy of turning cropinsurance into a farm programis something Congress reallyneeds to think about.

“A second issue is, how doyou pay for this? The ACREprogram doesn’t cost too muchbecause nobody participates in it.You have 8 percent and 13 per-

cent (respectively) of the farmersand the acres in the program.

“If you were to scale that upand make it appealing nation-wide, so there’d be heavy par-ticipation, there would be asubstantial cost.”

Lawmakers also have floatedthe idea of developing ACREinto more of a whole-farm pro-gram, covering a variety ofenterprises. Embracing current-ly non-ACRE-guaranteed cropsunder the program rather thanthrough expanded insurancepolicies would further boostfederal costs, Collins said.

Even if Congress incorpo-rated a county-based yield trig-ger into ACRE, he argued theprogram would remain ofquestionable value to growerswhose yields on average are“not highly correlated” withtheir county yields.

Farmers who favor county-based revenue protection

Continued from page 1than 30 programs included in the 2008 bill “do not have anybaseline at all.” RMA’s SRA “threatens to rob even more spend-ing baseline,” he told subcommittee members.

“If you have a program that’s working and you take resourcesaway from that, you may make it a non-functional program,”Nelson warned. “We need to figure out what funding is availableand direct it to the programs that need funding. Illinois farmersrely on these risk management products.”

Nelson

Page 5: FarmWeek June 28 2010

PRODUCTION

FarmWeek Page 5 Monday, June 28, 2010

Next move up to USDA

Supreme Court rulingvalidates biotech process

BY MARTIN ROSSFarmWeek

The U.S. Supreme Court last week over-turned a lower court ruling that has effectivelybanned production of GMO Roundup Ready(RR) alfalfa since 2007.

But after the court resolved major biotechregulatory issues, the co-authors of currentorganic laws moved to keep the ban in place.

The Supreme Court statedthe federal Ninth District Courtabused its authority when itprohibited planting the biotechalfalfa in 2007 at the behest oforganic producers. The opinionstated that the lower court’sinjunction on Roundup Readyalfalfa, issued after federalagencies had signed off on itssafety and 220,000-plus acreshad been planted, “cannotstand.”

The ruling allows USDA topermit planting pending a finalenvironmental impact statement(EIS) on RR alfalfa. In the bigger picture, theruling means producers now “can choose toplant crops that are approved by the regulatoryprocess in this country,” Monsanto Senior VicePresident David Snively said.

The high court ruling was expected to have afavorable bearing in a forthcoming case threat-ening a permanent injunction against sale ofRoundup Ready sugar beets in California.

Monsanto now seeks USDA’s “partial dereg-ulation” of RR alfalfa. USDA’s Animal andPlant Health Inspection Service will considerthe fact that Roundup Ready resistance is not a“novel” trait as well as environmental andhuman health issues related to GMO alfalfa,according to American Farm Bureau Federationanalyst Russell Williams.

Williams noted USDA’s earlier draft EISgauged “no significant impact” from RR alfalfause. He stressed the Ninth District Courtinjunction was based on “socioeconomic” crite-ria, and not on environmental or safety con-cerns.

He said the higher court’s rejection of a bidto overturn the planting ban itself “wasn’t that

big a surprise,” though the justices argued thedistrict court could have considered otheroptions such as partial deregulation. USDAitself had offered that possibility.

“We would hope USDA would move forwardwith what it’s already said it wanted to happenand do a partial dereg so farmers would haveaccess to this technology as soon as possible,”Williams told FarmWeek.

“Does USDA actually havethe authority to do a partialdereg? Based upon their com-ments in supporting it, we wouldthink they probably do.”

A new lawsuit is possible ifUSDA approves partial dereg-ulation, but a court ruling like-ly would take years, and plain-tiffs “won’t get any immediateinjunctive relief because ofwhat just took place in theSupreme Court,” Williamssaid.

Sen. Patrick Leahy (D-Vt.)and Rep. Peter DeFazio (D-Ore.)

last week led 49 House members and five sena-tors asking USDA to retain RR alfalfa’s regulat-ed status. The pair, who helped create federalorganic standards, argued “consumers todayrespect and rely on what the USDA certifiedorganic seal represents, which includes no(GMO) contamination.”

RR alfalfa passed a U.S. Food and DrugAdministration food safety review and wasgranted non-regulated status by USDA in2005. A U.S. Environmental Protection Agencyreview verified its safety, and prior to the dis-trict court injunction, it was planted by nearly5,500 growers.

While genetic drift can occur in alfalfa,Williams said routine crop containment-buffermeasures can protect non-GMO crops. The“infinitesimal” amount of genetic material thatcould be transferred from RR alfalfa “doesn’ttransform your crop into a non-organic crop,”Snively told FarmWeek.

Williams rejected claims that RR alfalfaplantings could endanger USDA organic certifi-cation. Growers are protected if they did not“knowingly” plant GMO seed, he said.

Corn Belt would feel bruntof RMA insurance cuts

A final agreement between USDA’s Risk Management Agency(RMA) and the insurers who deliver federal crop policies posesparticularly sobering ramifications for Illinois and other key Mid-west states, industry analysts warn.

National Crop Insurance Services (NCIS), an industry tradegroup, was poring over the standard reinsurance agreement’s(SRA) 1,000-plus pages last week, attempting to define specifical-ly insurers’ “responsibilities and liability,” NCIS President BobParkerson reported.

While RMA has indicated it could tweak a few minor provi-sions and technical details, Parkerson stressed the final provi-sions are pretty well set.

The “landmark” SRA is unprecedented in terms of the “cutsand complexities” it lays out, he said. It would redirect $4 billion incompany federal crop insurance administration reimbursementsover 10 years to deficit reduction, with an added $2 billion ear-marked for conservation or other yet-unspecified ag programs.

Past SRAs have set the same terms for all 50 states, but under newprovisions aimed at “rebalancing” insurance profits across the U.S.,the deepest administrative funding cuts are focused on five highlyprofitable “Tier 1” states: Illinois, Indiana, Iowa, Minnesota, andNebraska. The other 45 states share the same SRA terms, but RMAwould redistribute 1.5 percent of annual underwriting gains (policyprofits) from companies in Tier 1 states to 17 “underserved” states.

The provision is an incentive for companies to serve regionswhere costs to insure growers are higher.

“The Corn Belt gets hit pretty hard,” Parkerson toldFarmWeek. “With a $6 billion cut, you’re going to have tochange a great deal and take a look at services and programchanges.”

Parkerson questioned how his industry would weather newSRA reductions after already sustaining $6.4 billion in 2008 farmbill cuts. While SRA cuts would contribute “a drop in the buck-et” to deficit reduction, he was concerned the agreement couldspur industry consolidation and tighten potential rainy-dayreserves for crop insurers.

According to NCIS consultant Keith Collins, insurers nation-wide would see an average reduction of roughly 30 percent inreimbursements under the SRA, on top of a 12 percent dropunder the last farm bill “that’s just going into effect now.” Park-erson suggested Tier 1 states could sustain a 46 to 47 percentreduction in administrative reimbursements.

But the Corn Belt’s “very substantial reduction” in underwrit-ing gains poses an even greater hit, Collins said. Agent commis-sions would be capped relative to premiums, but RMA deemedCorn Belt commissions “excessive” vs. the rest of the nation,and those commissions would be further limited.

“Administrative costs and policies are based on commodityprices, and the high commodity prices a few years ago drove thecommissions and the amount of dollars the agents received to anextremely high level,” Parkerson said.

“Of course, commodity prices go down as well as they go up,and they’re on their way back down. That has to be taken intoconsideration.” — Martin Ross

Prevent plant deadline approaching: Eye insurance optionsAs the growing season pro-

gresses, Illinois corn growersshould review their crop insur-ance options.

June 5 was final plantingdate for most insured Illinoiscorn (May 31 was the final datefor Alexander, Hardin, John-son, Massac, Pope, Pulaski, andUnion counties).

Producers unable to putseed in the ground by thosedeadlines must considerwhether to declare “preventplant” or shoot for a reducedinsurance guarantee under late-plant provisions. Insured grow-ers can declare prevent plantJune 6 through July 3 (72 hoursafter an official June 30 dead-line).

According to Tom Tracey,

requirements should contacttheir local crop insurance repre-sentatives.

Under “failed crop” provi-sions, growers have a choice ofassuming all risk for the secondcrop or insuring the replace-ment crop and receiving 35 per-cent of the failed crop originalguarantee. If the insured sec-ond crop doesn’t add to season-al insured losses, the full guar-antee is reinstated.

In a prevent-plant case,growers don’t have that choice:If their policy covers all cornand beans in a county, beansplanted during the late-plantperiod must be insured.

The late-plant period forsoybeans also is 25 days follow-ing the county planting date.

Producers under a June 20 finalplanting date who plant beansJuly 1 to collect 35 percent ofthe corn prevent plant guaran-tee will see a 10 percent reduc-tion in their soybean guaranteefor those acres.

The corn loss payment afarmer receives and any paymentfor soybean, which has had theguarantee reduced, may equalenough indemnity for one crop.

A prevent-plant declarationdoes not affect producer eligi-bility for potential disaster aidthrough the new supplementalrevenue assistance (SURE)program. Crop insurance orfederal non-insured crop pro-tection is required for growersto receive SURE payments fora given season.

Country Financial director offield claims, growers whodeclare prevent plant receive 60percent of their insured cropguarantee if affected acres areleft unplanted, unless they pur-chased a 5-10 percent preventplant “buy-up” by the March 15insurance sales closing date.

There are various countyprevent-plant deadlines for Illi-nois soybean plantings, the ear-liest being June 15.

Growers also may plantcorn after the final plantingdate, during a 25-day “late-plant” period. But their cropguarantee drops 1 percent eachday they delay planting, from100 percent on June 5 to 75percent on June 30 (or June 25for producers in the seven

southernmost counties). After the late-plant period,

there’s another option beyondplanting cover crops. If pro-ducers with a June 5 final plant-ing date plant soybeans on July1 or after, they would get 35percent of their (60-70 percent)qualifying corn prevent-plantguarantee.

If producers plant soybeansat any time during the lateplanting period for corn, therewould be no prevent-plantindemnity at all. If they plantsoybeans any time after the pre-vent-plant period for corn, theyhave to insure those soybeans(if their original policy coveredbeans in the affected county).

Growers with questionsabout prevent- or late-plant

‘We would hopeU S DA w o u l dmove forward withwhat it’s alreadysaid it wanted tohappen .’

— Russell WilliamsAmerican Farm

Bureau Federation

Page 6: FarmWeek June 28 2010

Bernie Walsh, Durand, Winnebago County: Much of thesame again last week, withwarm temperatures and rainevery few days. We had about1.7 inches of rain for the week,but southern parts of the countyhad 2 to 3 inches. Once again,we have avoided the damagingstorms and the corn and beans

are looking very good. Some of the earlycorn is shoulder high, and the beans aregrowing very fast. We had soybeans startingto flower before June 21 — that’s prettyunusual. Some beans on low ground are notflooded, but are way too wet. They are yellowand short. Lots of neighbors are looking for achance to make a second cutting of hay.Have a good week.

Pete Tekampe, Grayslake, Lake County: Another wet andhot week in Lake County. Gotrain five of the last seven dayswith only a total of almost 0.8 ofan inch of rain in my area. Otherparts of the county got more rainwith severe winds. Most of thecorn is shoulder high and lookingdark green. Early-planted beans

are looking great, but the later ones are moreaverage. Winter wheat is turning fast, but stilltwo weeks out. Spring grains have goodcolor and are mostly headed out. Not muchhay was baled last week. They are calling forrain for three of the next seven days. I hopethey are wrong.

Leroy Getz, Savanna, Carroll County: Rain, hurricane-typehigh winds on June 18, and thenheavy rain on Monday (June 21).Two tornado storms onWednesday. We totaled 3.8inches of rain for the week. Treeswere down, power was out, andcornfields were tipped withsome stalks broken off. Most

fields will stand up again. Wet yellow areasare getting bigger. Hay making is at a stand-still. Small grains took a bad hit. June raintotal is 8.1 inches. Growing degree units total1,028.

Ron Frieders, Waterman, DeKalb County: Wow! Four inch-es of rain last week on saturatedsoils. Creeks are out of theirbanks, and all of the low spots arefull of water. After numerousheavy rains, there are large areasof stunted and drowned-outcrops. Weed pressure is a bigproblem this year because

sprayers are unable to keep up with demand.Crops are growing at a phenomenal rate.Some corn is more than 6 feet tall and lookslike it could be tasseling by July 4 or earlier.Some beans are 16 inches tall and flowering.The wheat looks ready to combine.

Larry Hummel, Dixon, Lee County: Two storms movedthrough the Dixon area duringthe past week. The first included70 mph winds and 2 inches ofrain. A lot of the corn was tippedsideways; a few fields were flat-tened. By Wednesday, the cornhad straightened up only to beknocked down by a more violent

storm that did the most damage south andeast of Dixon. It included 85 mph winds, atornado sighting, hail, and another 2 inchesof rain. Hail damage was severe in severalfields. Some corn was stripped of its leaves— the worst I’ve seen. We have more than200 acres of corn with shredded leaves. Theleaves in whirl look OK, so they should growout of it. I’m more worried about a field ofsoybeans that was about thigh high and arenow not even knee-high. Bruised and brokenstems and with most of the leaves gone, itmade for a dismal site.

Ken Reinhardt, Seaton, Mercer County: There were multi-ple severe storms during theweek. Most of the worst oneswent around us, but plenty of rainfell — 3, 4 or more inches of rain.It looked like the ring of fire willbe moving on after the weekend.A more normal weather patternwill be welcome. No fieldwork

was done last week, unless by airplane. Arecord amount of prevented planting willhappen here. Early-planted corn on soybeanground looks good if it wasn’t drowned out. Itis getting tall enough to hide some of thedamage. Grain hauling has stopped becausethe river is closed to barge traffic.

Joe Zumwalt, Warsaw, Hancock County: Last weekwas another wet week inWestern Illinois. While theweather looks to be turning forthe better, we still have to dealwith the nearly 16 inches ofrain that has fallen in June andnearly 40 inches so far for theyear. Crops continue to show

the impact of too much moisture. Stillnearly 40 percent of the soybean crophasn’t been planted. The corn at thispoint is extremely variable within everyfield. A lot of hay needs to be cut. Very lit-tle of the hay that has been cut has beentaken up dry. Many are comparing thisyear to the weather of 1993. Until recent-ly the river has not been an issue, but weexpected a crest at about 20 feet this pastweekend and then a gradual fall. Most arestill hoping to plant their soybeans, butJuly 1-5 seem to be the magic dates wheneveryone will pull their planters in theshed and call 2010 good — or not sogood!

Ron Moore, Roseville, Warren County: Not muchchange from last week.Another 2.5 inches of rain.There has been no post spray-ing done in this area and still afew fields of beans to plant.The corn is growing, but mostof it is yellow, and theprospects for average yields

go down everytime it rains. No hay hasbeen baled since my last report. One ofmy daily chores is to check the flood gapsin my pastures to see if they are still thereinstead of being washed away. We got 1.6inches of rain on Wednesday. Ponds infields are deeper than ever. No wind dam-age to report.

Jacob Streitmatter, Princeville, Peoria County: Awet week in Central Illinois.Pop-up thunderstorms everyday bringing anywhere from0.01 of an inch to 3 inches. InWednesday’s rain, I received2.1 inches. All the low-lyingareas are flooded and and thewater does not seem to go

down. Corn is getting more yellow in thewet spots with every rain, and soybeansare starting to show signs of wet feet. Ihave a rain gauge out to see what theweekly rain total is, but evidently mydad is right and I need a bigger raingauge because it was overflowing. I stillhave some soybeans I would like toplant, but it is not looking too promisingat this time. I have soybeans that needsprayed and corn that is not going toget sprayed anymore.

Tim Green, Wyoming, Stark County: Another wetweek. The last four weeks in arow we have had 3 or moreinches of rain in Stark County.Corn on corn is starting tolook really bad and has reallygone backward the last coupleof weeks. Corn on beans isstarting to show the effects of

all of the water, too. The beans seem tobe taking the water pretty well exceptwhere they were drowned out. They stilllook like they are growing and have a lit-tle color to them. I don’t know a lot aboutdiseases right now because the fieldshave been too wet for the scouts to reallyscout well. A few Japanese beetles arebeing reported on the very eastern side ofthe county. We are hoping for sun and alittle warm weather. I don’t want the rainto stop, but I would sure like it to slowdown.

Brian Schaumburg, Chenoa, McLean County: Anotherweek of wild weather thatincluded high winds, lightning,and more rain. Post sprayingof soybeans is at a criticalphase and ponding is prevent-ing access to fields. Corn washit with 50 to 60 mph straight-line winds and is goose-

necked in many locations. Foliar dis-eases, Japanese beetles, and corn root-worm are being scouted. Corn is pretas-sel with many fields to pollinate aroundthe 4th. Corn fungicide aerial applicationplans are being made. Corn, $3.26; fall,$3.21; soybeans, $9.66; fall, $8.69;wheat, $3.88.

Mark Kerber, Chatsworth, Livingston County: We havebeen busy the last two weeksemptying rain gauges andrecording rain amounts. Ourarea has received 6 inches ofrain in the last two weeks. Thenorthern part of the county hasreceived 12 inches. Soils arecompletely saturated. Corn that

was green has now turned yellow again insome areas. Some corn is down or leaningas there are hardly any roots with this wetJune. My neighbor said, “It’s like putting acorn plant in pudding and blowing on it withstrong winds.” We are running many side-by-side tests on using the full rate of insec-ticide on rootworm-treated corn, especiallysince this is the epicenter of rootworm pop-ulations. Soybeans are really hurtingbecause of the wet weather. They are yel-low, stunted, or dead in the ponds.Hopefully, this week will dry fields out soeveryone can spray the beans with herbi-cides. Don’t forget to spray the poison hem-lock, as it seems to be taking over if leftunchecked. Thistles are also bad this year.Markets are in a trading range as tradersfeel that rain makes grain in the long run.

Ron Haase, Gilman, Iroquois County: We had rain on June18, 21, 22, and 23. That means itrained on nine out of 13 daysfrom June 11 to June 23. Where Ifarm, we had a range of 2.8 to 4.5inches. For the month of Junethus far I have received a rangeof 4.6 to 7.5 inches. Someoneeast of Gilman said they have

received more than 14 inches in June. Thesoils are saturated. The only farm activity wasmowing roadsides when it wasn’t raining, butnow many road ditches contain water. Corn inthe local area is anywhere from the V8 to theV13 growth stage. Leaf diseases are begin-ning to appear with the humid weather. Rusthas been in every field I checked. The windsthat came with the storms blew corn plantsover and green-snapped some plants. Theleaning plants have straightened out, unlessthey are in standing water. Japanese beetlesalso made their appearance last week. Areasoybean fields are anywhere from V2 to theR1 growth stage, which is the beginningbloom stage. Many soybean fields havedrowned-out areas and a few fields have notbeen planted yet. Many soybean fields haveweeds since the herbicides have not beenapplied due to the wet soils. Local closingprices for June 24: nearby corn, $3.24; new-crop corn, $3.27; nearby soybeans, $9.59;new-crop soybeans, $8.73.

Steve Ayers, Champaign, Champaign County:Thunderstorms in the morning,thunderstorms in the evening,thunderstorms at suppertime.We love Illinois weather,because it changes all the time!We received 0.35 of an inch ofrain on June 19; 0.87 of an inchon June 21; 3.91 inches on June

22; and 0.27 of an inch on June 23 for a totalof 5.4 inches. We are no longer the gardenspot we were two weeks ago. We have lots ofponds, some yellowing of beans and corn,and varying height of corn within the samefield. The soybean fields that were woolly twoweeks ago are a lot woollier with volunteercorn and weeds (hopefully there are a fewbeans in the succotash). Looks like focus forthis week will be spraying soybeans, mowing,and scouting. A few tassels are popping. Let’sbe careful out there.

Wilfred Dittmer, Quincy, Adams County: Hooray! We’re actu-ally beginning to dry out a little bitafter a couple days of sunshine.My gauge recorded about 1 inch ofrain this past week after rainingnearly every day with some strongwinds. So far for June, my gaugesays 5.25 inches, while the localairport (which is less than half mile

away from my gauge) is reporting 7.17 inches,so I put up another gauge. As for crops, there isjust about everything in the book around herefrom corn almost ready to tassel to little plantsabout 6 inches tall, and all colors from lightgreen, to almost yellow, to very dark green.There are also many drowned-out areas. Mostsoybeans are small with spots that havedrowned out also. Locally, I don’t think 50 per-cent of the beans are in the ground becausemany fields are still untouched. Even mowinglawns involves a “squish” through the water.Have a safe week.

FarmWeek Page 6 Monday, June 28, 2010

CROPWATCHERS

Page 7: FarmWeek June 28 2010

Rick Corners, Centralia, Jefferson County: Finally a weekwithout rain and now we coulduse a good shower. The bigwheat harvest is over already.Yields were no record-setters,but were very good. I think mostall of the planting is finally done.It’s been a long time since April10. Corn is trying to tassel, but I

guess with the 100-degree temperatures, itdoesn’t know whether it wants to stick themout or not.

Kevin Raber, Browns, Wabash County: We had severaldays of extreme heat this pastweek. Highs in the 90s with heatindexes over 100. The cropsseemed to withstand it well —better than I did. We still havemoisture, but a few more days ofwarm and windy weather willmake a difference. The Wabash

River bottoms have excess moisture, about 3to 4 feet too much. It is still above flood stage,but it seems to have stopped rising. Wheatharvest is over. Yields probably were averagebut quality was good.

Dean Shields, Murphysboro, Jackson County: The weath-er was hot and humid last week.Kind of miserable. No rain tospeak of, so had a good week tocatch up what was left to do herein Jackson County. The farmriver bottom land, is dried outnow. We were able to get most ofit planted. The interesting thing

about that was as we pumped the water out alot of dead fish were left behind. We have hadseveral bald eagles flying around. It was abeautiful sight to see. We’re still plantingsome beans, but we have some beans thatlook very good right now. Wheat harvest isabout over and yields I’ve heard are any-where from 50 to 80 bushels per acre.

Ken Taake, Ullin, Pulaski County: It’s still hot here in deepSouthern Illinois. Temperaturesare running in the mid- to upper90s with high humidity. It is reallyuncomfortable to be outside. I’mreally concerned because thereis an awful lot of corn pollinatingright now. I don’t know whatthese temperatures are going to

do to the pollination process. We are still try-ing to spray for weeds in soybeans. Seemslike they never quit growing. I think wheat har-vest is pretty much over in the area. We didn’thave any wheat this year, but from the peopleI have talked to, yields ran somewhere in theupper 50 to 60-bushel area. Test weights andquality were pretty good, but not anything towrite home about. Please remember to becareful in this hot weather.

Ted Kuebrich, Jerseyville, Jersey County: Jersey Countyreceived about 0.5 of an inch ofrain last week. Temperatures arerunning in the high 90s with highhumidity. The early-planted cornstarted to tassel and is lookingvery good. The beans in JerseyCounty are at different stages ofgrowth, so when the weather is

right and it is not raining, farmers are out postspraying their beans. The Japanese beetlesare here and working on the edges off thebean fields. It has been hard to get the haycut and baled between rainstorms. There isvery little wheat to harvest in Jersey Countythis year because of the late, wet fall we hadlast year. The only yield that I have heard sofar is just a little more than 65 bushels peracre. With all the rain, the Illinois River is onthe rise. The flood stage is 425 feet and theriver stage Friday morning was at 431.7 feet.In the low land outside of the Nutwood LevyDistrict the water is back out in the fields.Prices at Jersey County Grain, Hardin: Junecorn, $3.41; fall delivery corn, $3.28; Junebeans, $9.71; fall delivery beans, $8.88; Julywheat, $4.36.

Dan Meinhart, Montrose, Jasper County: Another wetweek. It rained almost every day.Some wheat has been cut andstraw baled between showers.Some chemicals were applied. Alittle planting took place in isolat-ed areas on Wednesday after-noon. The river has returned toits banks, leaving considerable

damage in the low-lying areas. There is stillquite a bit of planting and replanting thatneeds to be done. We have had a couple ofcool days, but the heat and humidity wasexpected to return during the weekend.

Bob Biehl, Belleville, St. Clair County: Just a few isolatedshowers this past week. Most ofthe week was spent drying outfrom the prior week’s 3 inches ofrain. Those who needed to finishup some beans are getting thatdone now. Others are sprayingbeans for the first time andmaybe the last, because these

90-degree temperatures everyday have real-ly speeded up bean development. Drilledbeans almost have the ground shadedalready and 15-inch rows are not that farbehind. Wheat harvest kicked off for manythis past week, but ended quickly, becauseno one had too many acres of wheat. Two orthree days of wheat cutting wrapped up theharvest. Wheat was good quality. Yields aver-aged around 50 bushels per acre when youfactored in all the thicker and thinner stands.We are making some straw — as many thinkthe market may reward those who take thetime to do that. Corn is starting to tassel andlooks good right now. It’s hard to believe wewere finishing up corn planting at this timelast year.

Carrie Winkelmann, Menard County: With 2.84 inchesof rain last week, it was impos-sible to get in the fields to getany spraying done. The beansseem to be doing well, except inthe wet spots where they nevercame up. I am not sure if it willever get dry enough to patch insome replant. We still have

many farmers in the area who have notgotten their bean fields planted. The weedpressure is coming fast and furious. Thereis some good looking corn throughout thecounty and in some of our earliest-plantedfields tassels are starting to emerge, butthere are some equally horrible lookingfields that show just how much damageworking in wet fields can have after doingit for three years. Japanese beetlesshowed up the end of last week.

Jimmy Ayers, Rochester, Sangamon County: Wehad rain, rain, and more rain.It finally cleared up onThursday and Friday. OnJune 22 Springfield recordedrainfall of 1.94 inches. For theweek, we received 6.06 inch-es. One of my neighbors hada little more than 7 inches this

past week. The corn seems to beresponding to the hot and humid weath-er. Cornfields are still not even, butthey’ve greened up and look pretty good.The beans seem to be liking the weath-er. We had three rainstorms comethrough on June 22. Wheat is real closeto being cut. Be sure to stop at all inter-sections in the country. The crops are tallenough now that it’s hard to see at someintersections. County fairs are going on.Support your community by going to yoursmall-town celebrations.

Doug Uphoff, Shelbyville, Shelby County: Prettymuch what we did last weekwas empty rain gauges. We’vehad 13.5 inches of rain for themonth so far. Ponded areasare dead. A lot of that corn isjust falling over. The corn onthe rolling ground I am sure isgoing to be great because

there is no ponding in those places. Cashprices for the week: cash corn, $3.26; fallcorn, $3.34; January corn, $3.46. Pricesat Decatur at the processor without truck-ing taken off: cash corn, $3.46; fall corn,$3.48; January corn, $3.63 at the proces-sor. Cash beans, $9.49; fall beans,$8.85; January beans, $8.94. At Decaturwithout trucking taken off: cash beans,$9.77; fall beans, $9; January beans,$9.22. So, there is not much carrying inthe market. No incentive for holdinggrains. The market is wanting the grainnow. Soybeans haven’t grown hardly atall. They don’t look that great. They aredying in places, too. We need some dryweather to get things turned around here.There is a lot of weed pressure in thesoybean fields, and I am sure in thesouthern part of the county there is plant-ing still to be done. Be safe out there andwear rubber boots.

David Schaal, St. Peter, Fayette County: We experi-enced a few showers here inthe southern part of the coun-ty, but none amounted tomuch rainfall — maybe 0.2 to0.3 of an inch. The northernpart of the county receivedquite a bit more — up to 2inches. Lots of tassels are

appearing in the cornfields, so we arehoping for good weather. Replant cornlooks excellent also. As of right now, ourcorn potential looks very good — asgood as 2004 or better. The guys whohad soybean acres to plant got them induring the last couple of days along withsome replanting and spotting in. Someof the beans don’t look that impressiveright now. Farmers who had wheat areharvesting in between showers. Reportsare 30 to 70 bushels per acre with somea little less than that and some a littlemore. Most are running in the mid-50-bushel range. The test weight is from 51to 61 pounds. It’s also been a strugglefor guys to get hay put up. Cleaninggrain bins out, mowing roadsides andwaterways, and finally getting somebeans sprayed have been farm activi-ties.

Page 7 Monday, June 28, 2010 FarmWeek

CROPWATCHERS

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

Japanese beetle emergence being reportedBY KEVIN BLACK

Japanese beetles and their feeding are now beingreported from parts of Illinois.

These beetles have a broad hostrange, but they are particularly fondof plants in the rose family, fruit treesand berries, linden (basswood) trees,pin oaks, and many other species.

For ornamental trees and otherplants, it is now too late to use theimidacloprid soil drenches. Thesedrenches need to be applied early inthe season so that the insecticide canmove to all branch tips and leaves.

In spite of the Japanese beetle’s fondness for gar-den and ornamental plants, our primary concern iswith corn and soybeans. Both the beetles and theirgrubs are pests in these crops.

Japanese beetle emergence is not synchronous.Beetles will emerge over the next several weeks.

These beetles will feed andmate, females will lay eggs,and then they will repeat theprocess, laying eggs over anextended period of time.

This means that grubs ofdifferent sizes will be foundover much of the growingseason, contributing to the

severity of damage from this pest.Insecticides are effective in controlling Japanese

beetles in either agricultural crops or in the homegarden or landscape.

Check with your local FS crop specialist for guidelineson controlling this pest. Avoid the use of Japanese beetletraps, which seem to attract more beetles than they kill.

Kevin Black is GROWMARK’s insect and plant diseaset e c h n i c a l m a n a g e r . H i s e - m a i l a d d r e s s i [email protected].

Kevin Black

Page 8: FarmWeek June 28 2010

PRODUCTION

FarmWeek Page 8 Monday, June 28, 2010

Don’t miss our Early Season Sale from March 17-31, 2010

Contact: Name Phone: (000) 000-0000

Member Company Name

website

©2010 GROWMARK, Inc. A11424_6x8_aod

®

Different week, same story: Severe storms slam stateBY DANIEL GRANTFarmWeek

The onslaught of severeweather in the state continuedlast week as heavy rains, flashfloods, damaging winds, and apossible tornado in the west-ern suburbs of Chicago werereported.

“We’ve had severalepisodes of severe weather,”said Chuck Schaffer, meteo-rologist with the NationalWeather Service (NWS) officein Lincoln. “It’s been a situa-tion where the storm track hasbeen persistent in this part ofthe Midwest since the start ofthe month.”

Schaffer reported that italready is the wettest June onrecord in Lincoln with a totalof 10.75 inches of rain, whichsurpassed the previous recordof 9.83 inches set in 1947.

And June rainfall totalswere even higher in otherparts of the state, particularlyWestern Illinois on a line fromQuincy to the Quad Cities.Galesburg had received 12.71inches of rain for the month.

“We’ve just had a tremen-

other parts of the state as ofJune 23 totaled 8.04 inches inSpringfield, 7.94 inches inUrbana, 7.36 inches in Van-

dalia, 6.34 inches in Peoria,4.83 inches in Rockford, and4.78 inches at Chicago’sO’Hare airport.

dous amount of rain,” saidRon Moore, a FarmWeekCropwatcher from WarrenCounty. “We’re in worse shapethan last year.”

Moore replanted 90 acres inlate May only to see the fieldflooded by heavy rain onMemorial Day weekend. Hesaid the field has remainedunderwater since then.

“I don’t anticipate ever get-ting those acres planted,” hesaid.

And crops that are in theground, particularly in low-lying areas, could take a yieldhit due to excess moisture andthe possibility of disease,according to Moore.

“Hundreds if not thou-sands of acres of corn are yel-low in my area,” he said. “It’s acombination of leaching nitro-gen and a lack of oxygen inthe soil due to all the water.”

Meanwhile, straight-linewinds clocked as high as 80mph damaged trees, buildings,and knocked out power inparts of the state last Monday(June 21) followed by anotherround on Wednesday.

In Ford County, a 680,000-bushel grain bin that was inthe final stages of construc-tion was destroyed at AllianceGrain in Gibson City.

“They were down toputting the last ring on it(before strong winds collapsedthe 105-foot diameter grainbin and knocked it onto a 78-foot diameter bin, which dam-aged the roof of the smallerbin),” said J.B. Daughenbaugh,grain merchandiser at AllianceGrain. “Right now it’s stillunknown if we can replace it”in time for harvest.

Alliance Grain still has 4million bushels of storagecapacity at the site and 13locations around the state.

“We should be OK,”Daughenbaugh said. “We werejust hoping to eliminate someof the bushels we had to pileoutside.”

The weather pattern couldcalm down this week as com-puter models predicted astretch of hot, humid, and dryconditions, the NWS’ Schaffersaid.

Rainfall for the month in

A brand new 105-foot diameter grain bin that was one ring away fromcompletion sat in ruins last week at Alliance Grain in Gibson City. Severestorms, which brought strong winds, pummeled the state again last weekand caused the new bin, which would have had the capacity to store680,000 bushels of grain, to topple onto a smaller 78-foot diameter binand damage the smaller facility’s roof. (Photo courtesy of Kae Walters)

Weather issuescould benefit SoyYield Challenge

The challenging weather conditions in May and June actual-ly could benefit a major effort that’s under way to boost soy-bean yields in the state.

Organizers of the Illinois Soybean Yield Challenge toldFarmWeek they expect to obtain a wealth of data this year onsoybean production that eventually could be used to improveyields.

The Soybean Yield Challenge is a program spearheaded bythe Illinois Soybean Association (ISA) that combines the tal-ents of growers, students, and agribusinesses to test produc-tion skills and compete for higher yields in an effort to developnew and innovative farming practices.

“We do have a few cases where people were not able to gettheir plots in,” said Jim Nelson, Yield Challenge coordinator.“But most are in and look good.”

Nelson said there are 300 locations of side-by-side plotsthat will provide 600 data sets during this initial year of theprogram.

He expects participation and sponsorship of the YieldChallenge to expand once the program generates valuable pro-duction information this harvest.

“This will give us some of the most extensive data ever col-lected statewide,” Nelson said.

Nelson and Ron Moore, ISA president and a grower fromWarren County, believe the program will not experience anysetbacks this season due to weather-related challenges.

“I think we’ll get a lot of good information,” Moore said.“There are a lot of places in the state where the crops went inon time unlike my farm (where flooded fields have been aproblem).”

In fact, the weather challenges could be a good test of vitalproduction and genetic information, according to Nelson.Planting dates this spring were all over the board.

“I think (the weather challenges) will be good in a strangeway. It will help us define traits (and farming practices) thatcould help boost yields,” he said. “If everything went right, itwould be easy to raise good beans.”

Organizers of the Soybean Yield Challenge will provideinformation about the program to growers and agribusinessesat these University of Illinois Extension agronomy field days;Wednesday, Urbana; July 6, Pike County Orr Center; July 7,Monmouth; July 15, Belleville; July 15, DeKalb; July 29,Brownstown; Aug. 5, Dixon Springs; Aug. 19, Urbana; andSept. 9, Ewing. — Daniel Grant

Page 9: FarmWeek June 28 2010

LIVESTOCK

FarmWeek Page 9 Monday, June 28, 2010

Ag Secretary Tom Vilsack has appointedJeanne Harland, a cow-calf producer from

LaFayette, to serve on the Cat-tlemen’s Beef Promotion andResearch Board (CBB).

CBB oversees administrationof the national beef checkoffprogram. Harland will serve thefinal three years of the term offormer CBB Chairman DaveBateman, who resigned fromthe board for personal reasons.

Harland and her husband,A.J., farm in eastern Knox

County on land that has been in the Harlandfamily since 1937.

The Harlands and seven other beef produc-

ers in the state helped create Illinois CrownBeef, a branded beef company.

She also is president of the Knox CountyBoard of Health and is a member of the KnoxAg Roundtable. Her “Taste of Illinois Beef ”column appears regularly in the Illinois Beefmagazine and the Galesburg Register Mail.

Harland also serves as the legislative chair-person of Extension Partners — a statewideorganization that supports University of Illi-nois Extension programs — and she serves onthe Research Committee of the Council onFood and Agricultural Research.

She previously served as the product pro-motion chairperson for the Illinois Beef Asso-ciation and president of the Illinois Cattle-Women.

Harland appointed to Beef Board

Jeanne Harland

U.S. pork, beef supplies shrink to multi-year lowssumers is at sharp lows.”

USDA reported the supplyof beef in the U.S. is at a five-year low while the pork supplyis at a two-and-half-year low.The tight supplies are expectedto keep pressure on retail meatprices this summer.

In fact, Nelson reported theamount of beef available toU.S. consumers is down 4 to 6percent due to lower produc-

tion, strong exports, and weakimports while the amount ofpork currently available to U.S.consumers is about 5 percentsmaller than a year ago.

However, Nelson does notforesee any bull runs ahead inthe cattle or hog markets,despite the tight supplies.Allendale recently projecteddemand numbers will remainstable, rather than increase,

due to renewed concernsabout the economy.

Nelson projected the hogmarket will trade sideways intoAugust and cash cattle couldcontinue a seasonal decline.

Overall, current livestockprices still are well above year-ago levels and should providesome profits to hog and cattleproducers this summer, headded.

BY DANIEL GRANTFarmWeek

Tight supplies of pork andbeef in the U.S. likely willcontinue to support currentfarm prices and possibly spurhigher prices at the retail lev-el.

USDA in its cold storagereport last week found U.S.beef supplies as of May 31(363.8 million pounds) weredown 13 percent compared tolast year.

U.S. pork supplies wereprojected at 448.3 millionpounds, down 23 percent

compared to the same timelast year.

Supplies of chicken (699.5million pounds), on the otherhand, as of May 31 were up 11percent from the end of Apriland 9 percent compared to thesame time last year.

“The hog and cattle mar-kets will feel pressure fromchicken,” said Rich Nelson,market analyst and director ofresearch at Allendale Inc. inMcHenry.

“But we think prices will beable to hold up as the amountof pork and beef for con-

Hog inventory declines; no expansion until 2011

It appears U.S. hog farmersare in no rush to rebuild theirherds after absorbing massivelosses in 2008 and 2009.

The inventory of all hogsand pigs in the U.S. (64.4 mil-lion head) as of June 1declined 3.6 percent comparedto last year, USDA reported inits quarterly hogs and pigsreport Friday.

Meanwhile, the breedinginventory (5.79 million head)declined 3 percent in the pastquarter while the market hoginventory (58.6 million head)dipped 3.7 percent.

“Production gains (a record9.81 pigs-saved-per-litter) con-tinue to be quite impressive,”said Victor Aideyan, marketanalyst with HisGraiin Com-modities in Ontario, during ateleconference hosted by thePork Checkoff. “But it’s still asmaller herd.”

Sow farrowings from Marchthrough May totaled just 2.87million head, down 5 percentfrom last year.

Producers from June toAugust intend to have 2.89million sows farrow, USDAreported. If realized, farrow-ings in the current quarterwould be down 2 percent fromlast year.

“The tight supply situationlikely will extend through the

fall and winter and into nextyear,” Aideyan said.

The decline in U.S. swinenumbers is due in part to asharp drop-off in imports oflive animals from Canada.Canadian producers culled105,000 sows as part of anational program, and theinventory of hogs and pigs in

Canada as a result is 22 per-cent off its peak.

“That’s contributing to theoverall decline of the U.S.herd,” Aideyan said.

Concerns about the econo-my also are limiting expansionin the U.S. hog industry,according to John Nalivka,president of Sterling Market-ing in Vale, Ore.

“Feed costs are down 2.5percent and lean carcass pricesare up 24 percent, so withstronger prices and margins itbegs the question, “When arewe going to have expansion?,”he said.

“One of the biggest limita-tions, I believe, is the banksand how much money is outthere for operating loans.”

Hog producers may notexpand near-term, but itappears they could remain inthe black this year after theindustry from October 2007to February 2009 lost an esti-mated $6 billion.

Chris Hurt, ag economistwith Purdue University, pre-dicted Eastern Corn Belt car-cass prices could average $78per hundredweight in the thirdquarter and $68 in the fourthquarter.

The economist projectedfeed costs this year will declineby $6 to $7 per hundred-weight.

FarmWeekNow.com

Visit FarmWeekNow.com tocheck out the latest hogs andpigs report.

‘One of thebiggest limita-tions, I believe,is the banks andhow muchmoney is outthere for operat-ing loans.’

— John NalivkaSterling Marketing

Page 10: FarmWeek June 28 2010

CONFERENCES

FarmWeek Page 10 Monday, June 28, 2010

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Trip to 2011 AFBF® Annual Meeting, January 9-12, Atlanta, GA

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First Runner-Up$600 Cash (courtesy of 1st Farm Credit Services & Farm Credit Services of Illinois)

Four State Finalists$ 200 Cash (courtesy of COUNTRY® Financial)

1 yr. membership to Illinois Soybean Association (courtesy of IL Soybean Association)

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Trip to 2010 IAA Annual Meeting in St. Louis with specifi c expenses to be paid

District & State Discussion Topics:• Farm Bureau is the leading voice for agriculture but not the only voice.

How do we encourage other agricultural groups to work together for the common good of our industry?

• Has technology become essential for American farmers? Should Farm Bureau infl uence and encourage all generations of farmers, ranchers and agriculturalists to embrace technological opportunities?

Additional State Topics:• Government has always been involved in agriculture. Is the current level

of government involvement a net hindrance or a net benefi t to agriculture?• How will food movements such as “foodie” and “locavore,” which are

focused primarily in urban centers, infl uence national agricultural production and federal programs?

• Given recent challenges, such as volatile food prices and limited world food supplies, do American consumers adequately appreciate the importance of US-produced food? Will American consumers consider American agriculture important to our security in the future?

Entry Deadline August 3 (to Illinois Farm Bureau)Contact your county Farm Bureau® for eligibility and contest information.

IAA District Date Starting Time Location1 August 25 7:00 p.m. DeKalb County FB, Sycamore2 August 30 6:30 p.m. Carroll County FB, Mount Carroll3 August 12 7:00 p.m. Henry County FB, Cambridge4 August 23 8:00 p.m. Quality Inn & Suites, Dixon5 August 24 6:30 p.m. Grundy County FB, Morris6 August 23 7:00 p.m. Livingston County FB, Pontiac7 August 23 7:00 p.m. Woodford County FB, Eureka8 August 25 6:30 p.m. Knox Agri-Center, Galesburg9 August 24 7:00 p.m. Hancock County FB, Carthage10 August 26 6:30 p.m. Menard County FB, Petersburg11 & 12 August 26 6:30 p.m. Macon County FB, Decatur13 & 17 August 26 6:00 p.m. Edwards County FB, Albion14 August 31 7:00 p.m. Effi ngham County FB, Effi ngham15 & 16 August 24 6:30 p.m. St. Clair County FB, Belleville18 August 23 7:00 p.m. Williamson County FB, Marion

Show your art of discussion for hot agricultural topics - and compete for great prizes, including a chance to represent Illinois in the National Discussion Meet.

CHECKING WHEAT

Jim Luketich, maintenance supervisor with Mennel Milling Co.’s Mt. Olive facility, checks old-cropwheat being delivered from an elevator in Champaign County. Luketich said the amount of new-cropwheat coming to the mill is down significantly due to the smaller number of acres planted. The wheatwill be used to make cookies, cakes, and biscuits. (Photo by Ken Kashian)

IFB Commodities Conferenceplanned for July 28 in Normal

Illinois Farm Bureau willhost its annual CommoditiesConference on Wednesday,July 28, at the Marriott Hoteland Conference Center inNormal.

The theme of the confer-ence this year is “ChangingYour Game.”

The event will provideopportunities for farmers andagribusiness professionals tolearn about current markets,trends, and how they can gainan advantage in a changingfarm environment.

The conference has a littlesomething for everyone, MikeDoherty, IFB senior econo-mist, told RFD Radio. “Otherpeople beyond the agricultur-al audience might be interest-ed.”

Topics that will be dis-cussed at this year’s confer-ence include the energy mar-ket and policy, climatechange, weather, and farmpolicy.

“Energy is a big issue rightnow with the Gulf situation.We have three speakers thatwill be addressing variousaspects of energy,” Dohertysaid.

Conference registration andthe trade show exhibits willopen at 7:30 a.m. and the pro-gram will begin at 8:30 a.m.The cost to attend, $35 perperson, includes all conferencematerials, lunch, and breaks.

Pre-registration is encour-aged and can be done throughlocal Farm Bureau offices oronline at {www.ilfb.org}.

The pre-registration dead-line is July 16. Any cancella-tions received after July 19 willnot be refunded.

If hotel accommodationsare needed, contact the Mar-riott Hotel and ConferenceCenter in Normal at 888-236-2427.

A special room rate of $119will be available through July13 by requesting the IFB rate.

International herb conference scheduled in Collinsville

The International HerbAssociation is holding itsannual conference July 10 to12 at the DoubleTree Hotel inCollinsville. Pre- and post-con-ference tours will be held onFriday, July 9, and Tuesday,July 13.

On Sunday and Monday,the professional portion of theconference will consist of ses-sions on horseradish, the Herbof the Year for 2011, and avariety of business and herbaltopics.

“Four distinguished Inter-national Herb Associationmembers, Sal Gilbertie, BetsyWilliams, Carolee Snyder, andJim Long, will present a busi-ness forum on Sunday after-

noon,” said Chuck Voigt, Uni-versity of Illinois Extensionvegetable and herb specialistand conference host.

Other presenters willinclude Voigt, Deborah Lee,John Pike, Elizabeth Wahle,and J.W. “Bill” Courter.

“These two professionaldays are jam-packed witheducational seminars,” Voigtsaid.

Conference details and reg-istration are available at{www.ilherb.org}.

“The tours, dinners, vendorspace, public day and profes-sional program days are allpriced separately, so you canpick and choose what you’dlike to attend,” Voigt said.

Ag Watershed Institute to host July 10 bioenergy workshop

The Agricultural Watershed Institute will host a bioenergyworkshop from 8 a.m. to 3 p.m. Saturday, July 10, at the DecaturCivic Center, Decatur.

The workshop is designed especially for farmers and landown-ers who are interested in growing energy grasses as a cash cropand for conservation. Businesses or individuals who are interestedin using biomass crops for heat or electricity are encouraged toattend.

The event will feature presentations, exhibits, equipmentdemonstrations, and the opportunity to network with researchers,educators, farmers, and entrepreneurs. Participants also may tourseveral Decatur-area energy grass plots after the workshop. Mapsand plot information will be provided.

The event will start with registration and a continental breakfastat 8 a.m. Lunch will be provided.

The registration fee is $20 in advance or $30 at the door. Onsiteregistration is subject to space limitations.

For more information or to register, call the Ag WatershedInstitute at 217-877-5640 or go online to {www.agwatershed.org}.

Page 11: FarmWeek June 28 2010

EDUCATION

FarmWeek Page 11 Monday, June 28, 2010

Filling education’s plate: ISA launchesnew middle school curriculum, fills gap

Matt McClelland, left, director of operations for Prairie Farms Dairy,chats with Katrina Kaeb, who will study psychology at Eastern IllinoisUniversity and received a scholarship sponsored by Prairie Farms, andIllinois Farm Bureau Director Kent Schleich, an IAA Foundation trustee.Kaeb and other foundation scholarship recipients last week at a meet-ing in Bloomington heard about careers and internships available inthe IFB family of companies. (Photo by Cyndi Cook)

IAA Foundation scholarslearn about future careers with IFB, family of companies

College students learned last week not only are Illinois FarmBureau and its family of companies investing in their educationswith scholarships, but they also are potential employers.

“Agriculture is not a dead-end industry,” quipped Steve Ger-man, GROWMARK university relations and member employ-ment manager.

German and Dan Schlipmann, employment coordinator atCountry Financial, described a variety of career opportunitiesand internships available at IFB, GROWMARK, Country Finan-cial, and the family of companies.

Scholarship recipients from across Illinois participated in aprogram before they met with IFB board members and somescholarship donors.

Matt McClelland, director of operations for Prairie FarmsDairy, said it is important for his cooperative to invest in educa-tion through scholarships.

“Education is paramount,” McClelland said. “Not only are weeducating the public about agriculture, but we’re also educatingthe youth.”

During the presentations, the college students learned aboutthe areas of study and experiences that would help them preparefor positions within IFB and its family of companies. They wereencouraged to seek information about job openings from thecompanies’ websites.

German and Schlipmann reminded the students to attend col-lege career fairs and to start applying for internships in the fall.“Come see us early,” German added.

The two recruiters gave the students tips on the qualifications,resumes, and cover letters that would appeal most to futureemployers.

They also warned the students to be careful about the kindsof photos and personal information they post on the Internet,reminding them that that information is accessible to futureemployers. — Kay Shipman

BY KAY SHIPMANFarmWeek

The Illinois Soybean Association (ISA)couldn’t have picked a better time to offer anew soy-based curriculum for Illinois middleschool students. Just a week earlier, ag educatorsaround the state identified the need for more agcurriculum for students in grades 5 through 8.

Considered “a foot in the door,” ag-basedlessons for junior high students help maintainyounger students’ interest inagriculture until theyenter high school andcan take agricultureclasses, according toteachers.

“The (junior high)kids love them (hands-onag-based) lessons, saidLee Meteer, agricultureinstructor at TaylorvilleHigh School. Meteer’shigh school studentshave used ag curricu-lum to teachlessons to juniorhigh science stu-dents.

Funded by the Soy-bean Checkoff, the Pod to Platecurriculum is adaptable for grades 4 through 8and takes a comprehensive look at the soybeanindustry and related sectors, according to AmyRoady, ISA communications manager.

Roady noted the curriculum, which closelyfollows state learning standards, also exploreshow Illinois soybeans are transported andexported. “It was important for us to includethat information as well. It was not a big part ofwhat was done in the past,” she said.

Around the state, some school districts offerjunior high students exploratory ag classes toprepare them for high school, said Parker Bane,Pontiac High School agriculture teacher.

Bane welcomed news of additional resources

for middle school students. “It seems we have alot of resources for young students, and there’sa focus on high school students. That juniorhigh age (student) is a different animal,” Banesaid.

Pod to Plate materials are available on a newISA website {www.podtoplate.org}. The siteoffers students self-guided lessons on produc-tion, transportation, processing, products, andexports. Students create their own biodieselsemi truck to electronically travel through

different lessons and subject matters.The website also hasworksheets, quizzes, andteacher guides. ISA also

is offering a DVD ver-sion of the website for

teachers whose classeslack Internet connections

or have slower connections thatwould make it difficult for

students to use the mate-rials.

During a recent ageducation sympo-

sium, ag educatorsand ag ed groups

agreed more ag-based education materi-

als and resources are needed formiddle school students.

The Illinois Committee for Agricultural Edu-cation and the Illinois Leadership Council forAgricultural Education agreed to give moreattention to middle school programs in thecoming year.

Offering ag-based curriculum will benefitschools as well as their students, Pontiac’s Banepointed out. The education system is focusingmore on reading, math, and the sciences, caus-ing schools to seek new ways to interest andteach students in those subjects, he added.

“Districts want these things as (education)standards go up,” Bane said. “They want to getkids interested in science.”

Chicago Farmers to tour Chicago Ag SchoolThe Chicago Farmers will venture to the Chicago High

School for Agricultural Sciences, 3857 W. 111th St., Chicago,on July 16 for the group’s summer tour. The reservation dead-line is July 14.

The program will start at 9:30 a.m. with a tasting of studentrecipes using produce they have grown. An overview from stu-dents and staff will follow. The group will tour the grounds,classrooms, and the school’s farm stand.

The cost is $35 for members and $50 for non-members. Forreservations or information, call 312-388-3276 or go online to{www.chicagofarmers.org}.

Golfers to raise money for ag literacy, IAITC On Aug. 5, golfers again will

participate in a golf outing tobenefit agriculture literacy inIllinois.

The 14th annual IllinoisAgriculture in the Classroom(IAITC) Golf Outing, afundraising event hosted bythe IAA Foundation, will takeplace at the Wolf Creek GolfClub and Elks Country Club inPontiac.

“The money raised duringthe outing will help bring Agri-culture in the Classroom tomore schools across Illinois,”said event chairman SteveWentworth.

Driving ranges will open at9 a.m. with a shotgun start at

10:30 a.m. for the scramble-style tournament.

Golfers will compete for anumber of prizes, including agolf getaway to the EagleRidge Resort in Galena, tworound-trip AirTran airline tick-ets, gift certificates, and otherprizes.

A social hour, auction, anddinner sponsored by CountryFinancial will conclude theevening.

The registration fee is $130for an individual golfer, or$520 for a foursome. Banquet-only tickets are available for$50 each.

Registration is available onthe IAA Foundation website at

{www.iaafoundation.org} orby calling the IAA Foundationoffice at 309-557-2230.

“Since 1982, IAITC has suc-cessfully taught hundreds ofthousands of students aboutagriculture,” said Susan Moore,the foundation’s director.

“While IAITC has made avery positive impact, our goalis to increase IAITC effortsuntil we have reached everystudent in the State of Illinoiswith our message of theimportance of agriculture inour daily lives,” Moore said.

IAITC is the top fundingpriority of the IAA Founda-tion, Illinois Farm Bureau’scharitable foundation.

Sci4Kids, an educational web-site operated by USDA’s Agricul-tural Research Service (ARS) at{www.ars.usda.gov/is/kids} hasa new look.

The site educates children,ages 8 to 13, about the impor-tance of agriculture and sci-ence in their daily lives. Since

1998, Sci4Kids has postedmore than 126 stories aboutwhat USDA scientists do andthe discoveries they’ve made.

The website offers a“Teachers’ Desk” with class-room resources and activitiesand also includes science fairproject ideas.

New features include:• Science Spotlight, where

Internet users may find the lat-est news ARS research;

• Interactive games, such as“Color a Pepper Plant,” whichdemonstrates how plant breed-ers can change the features ofcrops.

USDA launches redesigned educational website

Page 12: FarmWeek June 28 2010

AROUND ILLINOIS

FarmWeek Page 12 Monday, June 28, 2010

McLean County farmer recreatesfarm machinery, buildings of pastBY KAY SHIPMANFarmWeek

A museum of toy-sized farm implements andbuildings has emerged from Jim Deal’s memoriesand creativity.

Deal, a retired McLean County farmer fromDanvers, recreates the horse-drawn farm machin-ery and wagons, barns, and corn cribs of the pastfrom walnut, birch, and other woods.

He relies on his memory only — no drawingsor plans — not even for his intricate gable barnwith a working pulley system that moves toy balesinto the haymow.

Deal, 87, chalked up his recall for details to hisexperience. “When I was 18, before I was in the(military) service, I was in every barn in the coun-try,” he said with a chuckle.

A self-taught model maker, Deal said he nevertook woodworking or shop classes in school. Hestarted farming with his wife, Doris, in 1947 afterWorld War II. Later, he farmed with his son,David, until he retired in 1990 and David tookover the operation. After Doris died in 2007,Deal focused more on his hobby.

Draft horses, especially Percherons, and horsewagon hitches were another of Deal’s passions.He and hisfamily, includ-ing daughter,PatriciaMeridith, wonseveral prizesfor showingdraft horseteams overeight years.

One of hisfavorite creations, a six-horse show hitch com-plete with canine mascot and twinkling wagonlights prances proudly across his fireplace mantel.Although Deal buys all the model horses, hemakes all their harness by hand — even hand-sewing the horses’ collars.

“I bet I’ve harnessed 150 head of (toy) hors-es,” he quipped.

Deal applies his incredible attention to detailsto each model, down to the tiny extra chainshanging in the back of a walnut semi-tractor trail-er. “All the horse-drawn implements have theirown oil cans,” he noted, showing a tiny woodenoil can that went with a hay rake.

Deal applies his ingenuity to create scenes thathave unusual uses for some materials. Belts for avacuum cleaner cover the rims of an ornate cir-cus wagon that pulls lions and other wild animalsacross his kitchen. Bits of paper grocery sackssprout as corn leaves with dowel rod stalks for anAmish farm harvest scene in another room.

“I make stuff out of scraps that people throwaway,” Deal, said.

Deal may be particular with each model’sdetails, but he doesn’t keep track of the hours hehas spent on each of his creations. “Some of thisstuff is tedious and sometimes you got to getaway from it,” he said.

Previously, the only way to glimpse Deal’samazing creations was to visit his farm home.Later this summer, he will have his first exhibit ina museum in Danvers during the community’sDanvers Days Aug. 20-22.

To see more photos of Jim Deal, go to Ken Kashian’sPhoto Gallery at {www..ilfb.org}.

FARMINGon a small scale

Upper photo: Deal lifts the roof of a wooden model corn crib that heconstructed in his home. Left photo: Deal uses jewelry pliers to bend wirefor many of his farm-model creations. Deal recreates antique farm ma-chinery and buildings from wood and other materials.

Right photo : McLean Countyfarmer Jim Deal points out detailson a model wagon that he built inhis home near Danvers. BehindDeal is a gable barn completewith working haymow and pulleysystem that moves bales. Below: A model corn crib madeby Deal is accurate down to thelast ear of corn being loaded intothe crib. Note also, the hand-made harness on the horse. Thisharvest scene is one of the 87-year-old self-taught model mak-er’s favorite creations. (Photos by Ken Kashian)

Page 13: FarmWeek June 28 2010

FROM THE COUNTIES

FarmWeek Page 13 Monday, June 28, 2010

BUREAU — Bureauand Lee County Farm

Bureaus will sponsor theirfirst annual golf outing Friday,July 9, at Shady Oaks CountryClub, Amboy. It will be a 9a.m. shotgun start. Proceedswill benefit the Bureau andLee County Agriculture in theClassroom programs. Call theFarm Bureau office at 815-875-6468 or [email protected] to registeror for more information.

CHAMPAIGN —Farm Bureau will

sponsor summer toolshedmeetings Thursday. MarkGebhards, Illinois FarmBureau governmental affairsand commodities executivedirector, will be the speaker.The following times andplaces are: 7:30 a.m. breakfastat Norman Uken’s, Urbana;10:30 a.m. Philo Tavern withlunch being served; and 3 p.m.at Larry Dallas’ farm, Tuscola,with Sidney Dairy Barn icecream available. Call theFarm Bureau office at 217-352-5235 for reservations ormore information.

• Farm Bureau will sponsora land use seminar from 9 to11:30 a.m. Wednesday, July 7,

at the Farm Bureau auditori-um. Cost is $10 or $15 fortwo sessions (the second onewill be Tuesday, Aug. 3). Reg-istration forms are available atthe Farm Bureau office. Callthe Farm Bureau office at217-352-5235 for more infor-mation or to register.

JERSEY — The Market-ing Committee will spon-

sor a pork promotion from 4to 7 p.m. Tuesday, July 6, atthe State Street Farmers’ Mar-ket. Stop by the Farm Bureaustand and buy a sandwichwhile you shop.

LASALLE — TheLaSalle County 4-H

and Junior Fair will be July 14-18. Season tickets are $12,which will provide entrance tothe fair, rodeo, tractor pull,demolition derby, and truckpull. Tickets are available atthe Farm Bureau office. Callthe Farm Bureau office at815-433-0371 for more infor-mation.

MASON — The all-member picnic will

be at 6:30 p.m. Tuesday, July6, at Samuell Park, Easton.Cost is $2. Call the FarmBureau office at 309-543-4451 by Tuesday for reserva-

tions or more information.

MCLEAN — TheYoung Leaders will

sponsor a breakfast meeting at7 a.m. Thursday, July 8, at theChateau Conference Center,Bloomington. Laura Daniels,dairy farmer and consumeradvocate, will be the featuredspeaker. There will be a silentand live auction. Tickets are$10 and may be purchased atthe Farm Bureau office. Pro-ceeds will support McLeanCounty 4-H. Call the FarmBureau office at 309-663-6497or go online at{www.mcfb.org} for moreinformation.

MONROE — A grainbin extraction and

farm safety program will be at6 p.m. Monday, July 12, at theGateway FS Elevator, Evans-ville. Fire department volun-teers, first responders, andfarm families are invited toattend. Dinner will be served.Call the Farm Bureau office at939-6197 or [email protected] by Friday forreservations or more informa-tion.

PEORIA — A farmlandassessment public

meeting will be at 6:30 p.m.

Thursday, July 8, at the FarmBureau auditorium. DaveRyan, Peoria County supervi-sor of assessments, will mod-erate the meeting.

• Orders for Michigan blue-berries are due Friday, July 9,to the Farm Bureau office.Blueberries are available infive-pound and 10-poundcontainers. Delivery to theFarm Bureau office will beThursday, July 15.

• Entries are due by Friday,July 9, for the golf scrambleSaturday, July 17, at LaurelGreens. The shotgun start isat 7 a.m. Cost is $15 for golfand cart.

PIATT — The FarmBureau appreciation

dinner will be at 4 p.m. Thurs-day, July 29, at the Forest Pre-serve, Monticello. A porkchop dinner will be servedand the String Town LaneBand will provide the enter-tainment. Call the FarmBureau office at 762-2128 forreservations or more informa-tion.

• The Wildlife Committeewill sponsor a photo contestthat runs through July 15.Photos must be original 8 x 10prints. Categories are habitat

and wildlife. Entry fee is $5per photo for members and$10 per photo for non-mem-bers. Voting will take place atthe appreciation dinner onJuly 29.

RANDOLPH — Agrain bin extraction

and farm safety program willbe at 6 p.m. Monday, July 12,at the Gateway FS Elevator,Evansville. Fire departmentvolunteers, first responders,and farm families are invitedto attend. Dinner will beserved. Call the MonroeCounty Farm Bureau office at939-6197 or [email protected] by Friday forreservations or more informa-tion.

STARK — The YoungFarmers Committee will

sponsor a kiddie pedal pull at2:30 p.m. Saturday, July 24,during the Wyoming CornBoil. Trophies will be award-ed to the top three in differentage divisions.

“From the counties” items aresubmitted by county Farm Bureaumanagers. If you have an event oractivity open to all members, con-tact your county Farm Bureaumanager.

Hancock County FB updates‘Looking for Lincoln’ exhibitBY KOURTNEY PARKS

The Hancock County Farm Bureau recently updated a “Look-ing for Lincoln” exhibit in a vacant lot on the south side of the

square in Carthage. The exhibit has attracted

attention from visitors toCarthage, but the lot was in need

of sprucing up and updating. Joe Scheetz cut down a large pine tree, allowing more light

into the space. Marion Barr, Joe Zumwalt, and Rod McGaugheyhelped carry limbs and other debris to a waiting flatbed trailer.They also placed the “Looking for Lincoln” sign in an areawhere more visitors will be able to view it.

After the cleanup, a new landscape design was created, andthe plants were put in and mulched. With two days of work andthe help of the Hancock County Farm Bureau Board of Direc-tors, the park is now an enjoyable place to have a meeting, eatlunch, or rest.

The Hancock County Farm Bureau would like to thank theCity of Carthage, Paula Wright of Wright’s Place, and the libraryboard for all of their help on this project.

This area should encourage more people to visit the down-town area.

Kourtney Parks is an Illinois Farm Bureau manager trainee.

A spruced-up “Looking for Lincoln” exhibit can now be seen on theCarthage square, thanks to the Hancock County Farm Bureau. (Photocourtesy of Hancock County Farm Bureau)

Page 14: FarmWeek June 28 2010

PROFITABILITY

FarmWeek Page 14 Monday, June 28, 2010

Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $34.92-$45.00 $38.2240 lbs. $58.11-$67.00 $64.0250 lbs. n/a n/aReceipts This Week Last Week

35,057 22,413*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 681 Last week 661 Last year 746Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $118; 110-130 lbs.,$127-$132. Good and choice 1-2: 60-90 lbs., $128. Slaughter Ewes: Utility and good 1-3: $43-$45. Cull and utility 1-2: $40-$43.

Lamb prices

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

This week Prev. week ChangeCarcass $79.09 $78.28 0.81Live $58.53 $57.93 0.60

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn06-17-10 7.2 11.5 24.506-10-10 7.9 14.0 41.3Last year 15.3 13.9 42.6Season total 1353.2 34.0 1439.0Previous season total 1117.4 39.5 1353.9USDA projected total 1445 900 2000Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $90.71 $90.95 -0.24Heifers $90.91 $90.97 -0.06

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 Change110.96 108.35 2.61

CME feeder cattle index — 600-800 Lbs.

Oil, fuel prices projected to creep higherBY DANIEL GRANTFarmWeek

Brian Milne, Telvent DTNrefined fuels editor/analyst,offered consumers and farmerssome good news and some badnews last week in his quarterlyfuel price outlook.

The bad news for fuelbuyers is that prices in com-ing weeks could creep high-er. The national averageprice of gasoline last weekincreased 4 cents per gallonto $2.74 while the averageprice for diesel increased 3

cents per gallon to $2.96,according to the EnergyInformation Administration(EIA).

Milne projected the nationalaverage price of regular gasolinecould touch or surpass $3 pergallon for at least one week thissummer after an unusual down-trend in prices from mid-May tomid-June.

“I think there is a chancewe could see $3 for at leastone week this summer,” saidMilne, who noted summer isthe peak driving season, sum-

mer fuel blends are moreexpensive to produce, and theU.S. economy is projected togrow this year by 2.8 percent.

In Illinois, the average priceof regular gas last week jumpedfrom $2.80 to $2.87 per gallon,according to the AAA FuelGauge Report.

So, what’s the good news iffuel prices are trending up inthe near-term?

Overall, Milne believes highoil and gasoline stocks com-bined with weak demand willkeep a lid on fuel and oil prices

BY RANDY MILLERPropane, produced from

both crude oil and natural gas,continues tofollow crudeoil prices.While stillbelow early-year highs,prices havefirmed sinceMemorial Day.

As unpre-dictable as

markets are, let’s look at whatwe might expect in thepropane world this summer.

Demand: Midwest propanedemand for grain drying atthis point looks much differ-ent from a year ago. Cornplanting has been completedcloser to normal and heatingdegree days are ahead of lastyear.

However, weather nowthrough September will play ahuge role in determining graindrying needs for fall. While itis too early to put much stockin winter forecasts, recenttrends suggest slightly belownormal temperatures, whichimplies we should plan onstrong propane demand forthis winter.

Midwest vs. Gulf Coast:Propane stocks in the Midwestbuild in the summer and havegrown by nearly 8 million bar-rels since March. In the GulfCoast, propane stocks havegrown by 7.5 million barrels,yet total stocks remain 10 mil-lion barrels below last year.

However, last year stockswere at near record levels, andcomfort levels for summerbuilds in the U.S. call for totalstocks to reach 60 million, atarget that is reachable at thispoint. It’s likely that, evenwith exports from the gulf,stocks will be adequate to startthe fall/winter season.

Crude oil: One impact ofthe oil spill is that crude oilfutures have developed a siz-able “carry” in the price curve.Carry means that prices in thefuture are higher than currentprices.

Crude oil futures in 2015carry nearly a $17 premium tonearby prices. Market trendssuggest higher prices downthe road with expectations fora review of drilling regula-tions.

What will the future bring?Certainly it will be full of sur-prises and new challenges. Forpeace of mind, forward con-tracting continues to be thebest tool for managing volatili-ty and uncertainty in today’smarket.

Additionally, take advantageof your retailer’s even-pay-ment plan. Doing so helpsyour cash flow by spreadingyour heating costs evenly overthe entire season.

If you haven’t already, taketime to visit with your local FSmember cooperative about itscontracting and even-paymentprograms.

Randy Miller is GROW-MARK’s director of propane oper-ations. His e-mail address [email protected].

for the foreseeable futuredespite the possibility of short-term run-ups.

He predicted oil prices in thethird quarter mostly will tradebetween $75 and $85 per barrel.

“Demand (for fuel) has beenweak,” said Milne, who reportedgasoline demand so far this yearis down 0.9 of a percent com-pared to last year while demandfor diesel is 1.2 percent belowlast year’s pace.

EIA this month lowered itsprojected average price ofcrude oil for the year by $3 per

barrel to $79 per barrel com-pared to its May estimate. Italso reduced the projectedaverage price of regular gaso-line during the summer drivingseason (April 1 to Sept. 30) by15 cents to $2.79 per gallon.

So while $3 gas is a possibili-ty, the dreaded $4 mark isn’teven on the radar.

The gasoline price estimate, ifrealized, still would be a sizableincrease from last year when theregular gas price averaged $2.44per gallon during the summerdriving season.

Gulf spill could have indirect effect on oil pricesMore than two months

have passed since the startof the oil spill crisis in theGulf of Mexico, and thecrude oil market has yet tosustain a serious bull run.

Prices the past six weeksfluctuated from a high of$86 per barrel on May 3 to alow of $65 per barrel onMay 25. Last week priceshovered in the $70s.

Meanwhile, the nationalaverage price of a gallon ofregular gasoline last weekremained slightly below $3.After Hurricane Katrina hitin 2005, gas prices temporar-ily spiked from $2.50 to asmuch as $6 per gallon insome areas.

Harry Cooney, GROW-MARK senior energy ana-

however, according to BrianMilne, Telvent DTN refinedfuels editor/analyst.

“If we ban offshoredrilling, we could expect (oil)prices to spike,” said Milne.He projected oil prices couldreach and surpass $100 perbarrel before the end of theyear if the U.S. banned off-shore drilling in response tothe current disaster.

A federal judge in NewOrleans last week blocked asix-month moratorium ondeepwater drilling projectsthat was put in place by theObama administration afterthe BP disaster in the Gulf.

Deepwater drilling cur-rently accounts for 7.8 per-cent of the global oil supplycompared to 2.2 percent in2000, Milne reported.

lyst, said the current oil spillis not affecting prices theway hurricanes often dobecause the majority ofpetroleum used in the U.S. isimported and the spill thusfar has not stopped thoseshipments from entering thecountry.

“Hurricanes cause oil rigsto actually shut down allalong the coastline,” Cooneysaid. “When you have to shutdown production, this affectsthe supply of oil, whichleads to the change in fuelprices.

“In reference to the oilspill,” he continued.“Demand has not changedand supply is not being limit-ed.”

The Associated Press

reported the gushing well asof last week had spilled126.3 million gallons of oilinto the Gulf since it rup-tured April 20. The Missis-sippi River, by comparison,pours 1 billion gallons ofwater into the Gulf everyfive minutes.

The ongoing situation inthe Gulf could have an indi-rect effect on oil prices,

A look at propane prices, supply

Randy Miller

Page 15: FarmWeek June 28 2010

PROFITABILITY

FarmWeek Page 15 Monday, June 28, 2010

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

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CASH STRATEGISTCorn Strategy

�2009 crop: Market per-formance over the past fewsessions suggests the market isentering a period of correc-t ion. We wil l hold off oncatch-up sales.

�2010 crop: The Decem-ber contract slipped below the$3.71 region and is now flirt-ing with the $3.64-$3.67 sup-port area. We recommendholding off on making addi-tional sales as the best pricingopportunities might not comeuntil early to mid-July.

�Fundamentals: General-ly speaking, the corn crop islooking good despite persis-tent rainfall throughout theregion. Weekly crop progressreports indicated 75 percent ofthe crop was in good to excel-lent condit ion, which wasdown 2 points from the previ-ous week but still above lastyear’s average of 70 percent.On the international front, itappears growing conditions inChina remain less than favor-able as it remains hot and dry.

� Fail-safe: We have nofail-safeSoybean Strategy

�2009 crop: July slippedbelow the $9.60 support, sug-gesting this first move up outof the cycle low could be nearan end. The next significantlevels of support come in atthe $9.46 and $9.42 region.

�2010 crop: With the mar-ket entering a period of cor-rection, it leaves the possibilitythe November contract couldtest the $9 to $9.07 region.After that, prices should moveback higher. Hold off oncatch-up sales.

� Fundamenta l s : T heweather forecast is calling forimproved conditions. Whilethunderstorms are still in theforecast this week, it appearsthe longer- te r m maps areanticipating a period of drying.All of the excessive moisturehas taken its toll on the soy-beans. This was reflected inthe latest weekly crop progressreport that pegged the crop at69 percent good to excellentvs. 73 percent the previousweek.

� Fail-safe: We have nofail-safe.

Wheat Strategy�2010 crop: The wheat

market is trading in a side-ways formation between the20- and 50-day moving aver-ages. Upside momentum isgoing to be limited, as sig-nificant resistance lies at the$4.87 region. We sug gestmaking catch-up sales near$ 4 . 8 0 o n t h e S e p t e m b e rcontract, but will hold offon making any addi t iona lsa les unt i l a seasonal lowcan be confirmed.

�Fundamentals: Con-ditions in Canada have not

shown any signs of relief andthe market remains concernedabout wheat production andquality issues. The combina-tion of persistent rainfall andcool weather in the springwheat region has resulted indelayed planting and a reduc-tion in acreage. In addition, itis likely the crop will experi-ence a drop in quality. Thehard red wheat crop is bestknown for its high protein lev-els. However, history indicatesthat crops grown in extrememoisture have a tendency tohave lower protein levels.

Soybean export shipmentssince last fall have been runningwell above USDA projections.

Basis charts

The pace started to cool early thisspring as business shifted toSouth America.

Corn shipments and exportshave been maintaining a steadyrate, but they still lag expectations.The wildcard going forward forboth corn and soybeans will be ifChina remains a buyer of U.S.commodities.

Over the past several months,the Chinese have continued topurchase U.S. corn and the firstcargo in four years recently wasunloaded in China. In addition,China announced it would shifttoward a more flexible exchangerate for the yuan, which has thepotential to result in increasedgrain imports.

Wheat exports remain stagnantas the supply of wheat bothdomestically and internationallyremains abundant. In addition,winter wheat harvest in the U.S. isprogressing and bringing addi-tional inventory into the pipelines.

Cents per bu.

Will exports continue to grow?

Page 16: FarmWeek June 28 2010

PERSPECTIVES

FarmWeek Page 16 Monday, June 28, 2010

Global warming cause,not existence, disputedEditor:

With respect to globalwarming: What most peoplecall settled science is reallyagenda-driven political consen-sus.

The science is that sunspotcycles drive temperature cyclesand these lead CO2 concentra-tion cycles.

These cycles have existedfor centuries and CO2 concen-trations have been much high-

er during times well before ourfossil fuels-based economy. Stating that no one is propos-ing eliminating all CO2 divertsattention from the fact thatwhat is being proposed willcripple our economy andincrease government controlof our lives horrendously.

Asserting that no reputableresearch organization hasrefuted the existence of globalwarming is true, but it is nottrue that none has challengedthe assertion that CO2 and in

particular man-generated CO2has caused it.

Those with the best creden-tials who challenge the politi-cal consensus have Ph.Ds. inmeteorology.

Furthermore, satellite datashow the earth has been in aglobal cooling phase of thecurrent cycle for several years.

Tellingly, we learned recent-ly through hacked e-mails andDr. Phil Jones’ (former direc-tor of the Climate ResearchUnit) confession of very

unscientific data manipula-tion.

As we watched the Copen-hagen Conference shiver to aclose, it became apparent thatthe scientific case was weak tononexistent, but that the polit-ical climate favored interna-tional socialism, particularly atthe expense of the UnitedStates of America, the Consti-tution, and our independence.

If anyone gets dispropor-tionate media coverage, it isnot those who question the

assertions about the causes ofglobal warming. I compli-ment FarmWeek for lettingboth sides be heard.

Remember, Al Gore’s“Inconvenient Truth” hasbeen foisted upon nearlyevery public school child inAmerica and not one in a mil-lion of them has ever heard ofTimothy Ball, Dr. Edward F.Blick, E. Calvin Beisner, orLord Christopher Monckton. DANIEL HARMS,Bone Gap

LETTER TO THE EDITOR

A struggle has been underway for some time over howbest to produce food.

In one corner — withUSDA’s assistance and encour-agement — are those whobelieve in local food, sustain-ability, and embrace the ideathat you should “know your

farmer.” In the other

corner arethose whobelieve thatevery farmershould be asefficient andproductive aspossible to helpfeed the world,keep foodprices low, and

maintain an adequate foodreserve in case of a bad cropyear.

Helping out in this corner,which I will call world food, area variety of agribusinesses,including Monsanto and BASF(chemicals).

Fortunately, farmers are inboth corners.

This struggle between worldfood and local food has beengoing on for some time. It evenreceived national attentionmany years ago when presiden-

tial candidate Michael Dukakissuggested, in Iowa of allplaces, that farmers shouldgrow Belgian endive rather

than corn and soybeans.The search for alternative

crops and alternative produc-tion practices continues today,but at more local levels. Alter-native crops, for example, havebeen investigated for some

time at Western Illinois Univer-sity in Macomb.

Some of you may be familiarwith efforts there to commer-

cially grow milkweed — a cropmany farmers have spent muchof their life trying to eradicate.That research program hasended, but perhaps too soon.

As it turns out, milkweed isan excellent absorber of oil

and could be useful to help theoil spill tragedy in the Gulf ofMexico.

U.S. farmers long have triedto balance sustainablefarming practices withones that boost pro-ductivity.

For example, onefarmer, in 1940, pro-duced enough food tofeed 19 people. Today,one farmer feeds 155people.

Between 1987 and2007, 40 percent morecorn and 30 percentmore soybeans wereproduced in the U.S.using the same amountof land. Soil erosionhas declined 43 percentin 20 years.

The keys to suchgrowth in U.S. cropproductivity andincreased environmen-tal attention are tech-nology, seed, andchemicals.

However, the technology,seed, and chemicals that pro-pelled that surge in U.S. pro-ductivity are available to anyfarmer in the world, not justU.S. farmers.

Farmers in other countries

may not be quite as concernedabout sustainability and envi-ronmental issues as U.S. farm-ers. It has been reported thatBrazil regularly imports chemi-cals that are banned by the U.S.and the European Union.These chemicals may increaseproductivity, but they hurtboth the environment andpeople.

Although U.S. soybean pro-duction has increased 25 per-cent over the past decade,Brazil has doubled its soybeanoutput. Combined, Brazil andArgentina now produce 25percent more soybeans thanthe U.S. Chinese buyers of soy-beans may not be interested inknowing their farmer, but theyare interested in a good price.

U.S. farmers, as they look atthe two competing forces oflocal food vs. world food,should consider if they wish tocompete in the world’s foodsystem. Whether they like it ornot, the rest of the agriculturalworld is competing againstthem.

William Bailey is the director ofthe school of agriculture at WesternIllinois University, Macomb. His e-mail address is [email protected].

WILLIAMBAILEY

AFBFgraphic

Local vs. world in food production, marketing

Farm dad lessons to kids: Keep everything in balanceWhen I was growing up, being a

farm kid wasn’t “cool.” There were cer-t a i n l y t i m e s Iwished my daddid somethingelse so I couldspend time with

my friends rather than spending timedoing chores.

Lucky for me, my dad wasn’t con-cerned with my definition of cool. Hewas concerned with taking care of thefarm so it would take care of us.

I’ve given that simple approach tolife a lot of thought. It’s because Dad’sapproach, which is the approach mostfarmers have to their livelihoods, isnothing more than a system of balanceand sustainability. It’s a system thatapplies to nature, to neighborhoods,

and to economies.Although it’s simplistic, the system

can go terribly wrong when it goes outof balance ... when one part of it triesto take more out than it’s putting in. Mydad tried to help us understand that les-son by instilling values like honesty andhard work.

There is no way to cheat the system.For example, trying to hurry along

milking chores by rushing the cowsthrough the barn would eventually leadto health issues in those cows thatwould cut milk productivity and quality.When those went below par, incomewent down, too.

If each cow was milked the appro-priate time based on the needs of herproduction cycle, herd health was main-tained, and milk production and quality

improved. So did the income.That kind of balance created sustain-

ability. But my dad, like other farmers,also knew he could grow his farm oper-ation by increasing the human inputs ...or as he would call it, “hard work.”

That hard work might include physi-cal labor or brain power. The resultmight be improved feed rations, betterpasture management, or barn improve-ments that made us more efficient orreduced the stress on the cows.

The more we put in, the more thecows gave back, either in increased pro-duction or a higher quality of milk —sometimes both.

For me, many important life lessonswere learned in a dairy barn. As I lookaround at today’s broader world and themissteps of companies, communities,

and countries, I wonder if some recentevents would have turned out better ifthose leaders had grown up on farms.

How might things be different ifthey applied some common farm wis-dom about honesty and hard work?

A farmer could tell you that you can’ttake out more than you put in. Thisfarm kid can tell you that, too. Plus Ican give you lots of examples of how Isaw that happen on a daily basis as Iwas growing up on the farm.

Farm dads are still passing alongthose life lessons. And that’s kind ofcool.

Dal Grooms, a new columnist for the Ameri-can Farm Bureau Federation, is a native ofthe Midwest. She writes about rural and agri-cultural issues.

DAL GROOMS

guest columnist