FarmWeek September 21 2009

Per

iod

ical

s: T

ime

Val

ued

Monday, September 21, 2009 Two sections Volume 37, No. 38

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

LEGISLATION THAT wouldexpand existing federal jurisdictionover “navigable” waters to simply“waters of the United States” wasmuch discussed last week. .............3

WITH HARVEST CLOSE athand, it is particularly important tothink farm safety. Farm Safety andHealth Week runs through Saturda-day. ..................................................13

T H E S TA T E ’ S G R A I NINDUSTRY on a voluntary basisis adopting a state-of-the-art elec-tronic program to better manage itsgrain inventory. ...............................8

Leaders see congressional ‘room to work’BY MARTIN ROSSFarmWeek

Amid seemingly saggingmomentum for public healthcare and greenhouse “cap-and-trade” proposals, Illinois FarmBureau Leaders to Washingtonlast week saw ag interests hav-ing “room to work.”

As Leaders canvassed Capi-tol Hill, the U.S. SenateFinance Committee rolled outa health blueprint that drops aHouse-proposed, government-run “public option.”

IFB Governmental AffairsDirector Mark Gebhards pre-dicted health care will “domi-nate” debate over comingweeks. Lawmakers cited a like-ly focus on financial industryregulatory reform over con-tentious cap-and-trade debate,if a health compromise isreached this fall.

Further, Sangamon CountyLeader Jim Birge noted Sen.Dick Durbin, a SpringfieldDemocrat, offered IFB leaders“some pretty open concessions”on the estate tax (see below).

Durbin agreed to supportextension of the soon-to-expire biodiesel tax credit andurge USDA to help strugglingswine producers.

“I think we’re seeing falter-ing on some of the bills that

“We need to make somechanges with regulatory lawson how insurance companiescompete across state lines,allowing portability with peo-ple’s health care plans,” he toldFarmWeek. “(Legal) tortreform is a way for us to

reduce costs in the health caresystem.

“There’s 80 percent ofhealth care reform thatRepublicans and Democratsagree on. We just have to getthat bill that will get bipartisansupport.”

appeared to have a lot of trac-tion early on,” Birge said.

“Cap and trade is not asmuch in the bag as we thoughtit was originally. (The privateoption) is not gaining traction.I think we have some room towork here,” said Birge, whoalso is manager of SangamonCounty Farm Bureau.

The Senate Finance Com-mittee plan favors health “co-ops” that would provide cov-erage to under- or uninsuredAmericans, as well as healthtax credits and subsidies.Reforms would be fundedthrough a tax on insurers thatoffer high-cost health policies.

Republicans balk at thebill’s insurance mandates andestimated $856 billion pricetag, while many Democratsfear proposed taxes wouldimpact insurance costs evenfor low-income consumersand cite the lack of a publicoption.

“Will there be a publicoption the way most peoplewant it? Not likely,” Durbintold IFB leaders.

IFB supports legislationthat ensures affordable care,reinforces rural health carefacilities, and exempts agemployers from having to cov-er seasonal workers.

Peoria Republican Rep.Aaron Schock sees room forcompromise on issues such asRepublican-sought medicalmalpractice reform, arguingDemocrats “need a health carebill” to retain support in 2010elections.

GETTING READY

David Johnson from Kings in Wayne County last week was among many farmers throughout the stateperforming last-minute maintenance on a combine in preparation for the approaching harvest season.Johnson works for David White, who said he plans to begin combining either corn or soybeans thisweek. According to last week’s Wayne County crop tour, the county’s average corn yield should beabout 150 bushels per acre. Soybeans should average 34.2 bushels per acre. (Photo by Ken Kashian)

Recognizing high farm capi-tal costs and the ravages ofcontinued inflation, lawmakerswere sympathetic to calls byparticipants of the IllinoisFarm Bureau Leaders to Wash-ington program for durable,long-term estate tax relief.

Under current law, theestate tax will be eliminated in2010, but it could be reinstatedwith a $1 million individual taxexemption in 2011 withoutcongressional intervention.

Rep. Deb Halvorson, aCrete Democrat, agreed“nobody should ever lose theirfarm because of taxes.” Butshe told the leaders that Con-gress “can’t just eliminate” the

estate tax, given the revenues itgenerates for federal coffers.

In a non-binding budgetresolution, lawmakers recentlyproposed extending the cur-rent 45 percent top tax rateand the $3.5 million individ-ual/$7 million-per-coupleexemption over the next fiveyears, but the IFB leaders lob-bied for at least a $10 millionexemption.

U.S. Sen. Dick Durbin, aSpringfield Democrat, indicat-ed he could support that levelof exclusion, acknowledgingproducers “don’t represent themajor sources of estate tax.”He said he recognized the needfor additional farm “breathing

room,” given rising real estatevalues.

IFB Board member JimSchielein argued a “reason-able” exemption indexed forinflation, along with “stepped-up basis” (where estate taxbasis equals fair market valueof property at a producer’sdeath, meaning less taxablegain when it later is sold)would preclude having to peri-odically “revisit” the issue.

Batavia Democrat Rep. BillFoster agreed Congress’ failureto consider inflationaryimpacts was “just stupid.” “It’swhy we’re in this whole mess,”he said.

Foster noted House discus-

sion of a plan that would allowheirs to defer estate taxes aslong as their land remains infamily production.

“As long as you’re on theland, farm the land, I’m infavor of indefinitely deferringthe estate tax,” Foster said.

Leaders related the impactthe tax has had on their fami-lies: Sangamon County farmer

See Tax, page 2

FarmWeekNow.comAn interview with a Leader toWashington participant on herviews about the estate tax is atFarmWeekNow.com.

Lawmakers support higher estate tax exemption

FATHER OF GREEN REVOLUTIONDIES — Dr. Norman Borlaug, 95, the plantpathologist who grew up on an Iowa farm andwon the Nobel Peace Prize in 1970 for the “GreenRevolution,” died recently at his Dallas home.

Borlaug, credited with saving the l ives ofmill ions, was a t ireless advocate for modernproduction agriculture from the 1970s until hisdeath. He cont inual ly stressed the need forchemical fertilizers and pesticides to increasefood production.

Borlaug became known as the “man who fed theworld” and the “father of the green revolution”for his groundbreaking plant-breeding work inMexico in the 1940s, in Asia in the 1960s and1970s, and on the African savannas in the 1980s.

He proved science had the capability to increasefood production exponentially.

DORR NAMED USGC HEAD — FormerUSDA Undersecretary for Rural DevelopmentThomas C. Dorr will serve as president and CEOof the Washington, D.C.,-based U.S. Grains Coun-cil (USGC). Dorr will officially assume the role onNov. 16.

He said being an Iowa farmer for more than 30years and serving seven years with USDA affordedhim the opportunity to understand and value thenearly 50 years of export market developmentefforts orchestrated by the USGC.

Dorr said his first priority will be to workwith the council’s membership, board of direc-tors, and staff to clearly define the challengesand the opportunities for international graintrade.

HOOSIER CORN DISTILLED INTOVODKA — Indiana corn is being used to cre-ate an unusual locally grown product — vodka,according to IndyStar.com. Stuart Hobson ofHear t land Dist i l lers i s market ing h is hand-c r a f t ed co r n -based vodka a t r e t a i l ou t l e t saround Indiana and offering samples at festi-vals and trade shows.

Hobson is producing about 1,200 bottles of hisIndiana Vodka each month and has plans to makean Indiana gin in the near future.

The entrepreneur is considering adding localand regional fruits to his vodka to make flavoredvodka.

FarmWeek Page 2 Monday, September 21, 2009

(ISSN0197-6680)

Vol. 37 No. 38 September 21, 2009

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

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

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

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

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

© 2009 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

Daniel Grant ([email protected])Editorial Assistant

Linda Goltz ([email protected])Business Production Manager

Bob StandardAdvertising Sales Manager

Richard VerderyClassified sales coordinator

Nan FanninDirector of News and Communications

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

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

Quick TakesGOVERNMENT

Washington eyeing betterways to corral climate changeBY MARTIN ROSSFarmWeek

U.S. Rep. Bill Foster was among a minority ofHouse Democrats who voted against potentiallycostly cap-and-trade legisla-tion that cleared the Housethis summer.

The Batavia congressman, aHarvard-graduated physicist andformer Fermilab researcher, seesa better way — several betterways that “pay for themselves,”in fact — to rein in greenhousegas (GHG) emissions and thusglobal climate change.

A growing number of ag, commercial, andgovernment interests are challenging proposalsto cap GHG emissions by energy providers andindustry, potentially raising the cost of electrici-ty, fuel, ag inputs, transportation, and food.

Illinois, which is highly reliant on coal-generat-ed power, stands squarely in the bill’s crosshairs.

In light of recent developments, the Senateis casting a wary eye on House proposals, andclimate debate could well be pushed into 2010.An aide to Rock island Democrat Phil Hare lastweek told Illinois Farm Bureau Leaders toWashington that Hare anticipates “a very differ-ent bill” emerging from the Senate.

Foster cited a recent report by the McKen-zie Consultancy, a research think tank, outlin-ing 650 non-regulatory options for reducinggreenhouse emissions.

Those include incentives for vastly improvinghome insulation and energy efficiency and whatFoster termed a sort of “cash-for-clunkers forlong-haul rigs” aimed at helping put more ener-

gy-efficient trucks on theroad.

The study maintains a $500billion investment would con-tribute to $1.2 trillion in fuelsavings by 2020.

“We should do 100 percentof the things that pay forthemselves before we startpunching the energy-intensivebusinesses, which is the

whole point of view of the (House bill),”stressed Foster, who said he received a “veryrespectful arm-twisting” from the White Houseto support the measure.

“I hope we can do better. Eventually, we’llhave to do things that cost money, but thisthing is not optimized at all that way.”

Springfield Democrat Sen. Dick Durbinemphasized the need for final federal approval ofMattoon’s FutureGen clean coal power/carbonsequestration project to ensure future availabilityof natural gas for non-utility uses.

However, several lawmakers includingDurbin, the second most influential Democratin the Senate, remain diehard advocates of fed-eral greenhouse controls, as well. “I think it iscritically important to do this,” he told the IFBleaders.

Illinois Farm Bureau Leaders to Washington Jim Schielein of Lee County, left, and Robin Cruse of ChampaignCounty discuss a variety of issues with Batavia Democrat U.S. Rep. Bill Foster, a Harvard-trained physicistand researcher who replaced former House Speaker Dennis Hastert in 2008. Foster is critical of House cap-and-trade proposals, urging instead innovative energy conservation/emissions reduction strategies. (Photoby Martin Ross)

Continued from page 1David Ray’s father “lost his liveli-hood” at age 55 with the deathof his farm landlord, and Rayfears his heirs could be forced tosell out under a $1 millionexemption.

Champaign County’s RobinCruse cited the “fees and timeand preparation” she and herhusband have invested to ensure

their currently young childrenaren’t forced to sell their inheri-tance.

On a broader level, forcingfamilies to liquidate businessholdings results in “lost produc-tivity in our economy,” PeoriaRepublican Rep. Aaron Schocktold FarmWeek.

“I don’t believe the governmenthere does a better job of stimulat-

ing the economy than private entre-preneurs and private businesspeo-ple,” Schock said.

“The estate tax is a very, verydangerous thing for a lot of farm-ers who have $1 million or $2 mil-lion or $5 million or $10 millionnowadays, with farm groundgoing from $4,000 an acreupwards to $8,000 to $10,000 anacre,” he said. — Martin Ross

Tax

‘ I hope we can dobetter.’

— U.S. Rep. Bill FosterBatavia Democrat

GOVERNMENT


Leaders shed light on ‘waters’ debate concernsBY MARTIN ROSSFarmWeek

Illinois Farm Bureau Lead-ers to Washington last weekeducated Capitol Hill law-makers on congressional pro-posals that could draw farm-ers into murky new regulato-ry waters.

The Clean Water Restora-tion Act, recently approved bythe U.S. Senate Environmentand Public Works Committee,would expand existing federaljurisdiction over “navigable”waters to simply “waters ofthe United States.”

According to AmericanFarm Bureau Federation reg-ulatory specialist Don Parrishthat would be going “wellbeyond what people think ofas ‘water.’”

Under the measure spear-headed by Sen. Russ Feingold(D-Wis.), federal agenciescould regulate activitiesaffecting not only lakes andstreams but also ditches, ero-sion features, and grasswaterways.

House Transportationand Infrastructure Chair-man Jim Oberstar (D-Wis.)is expected soon to intro-duce a companion bill.

The Feingold/Oberstarmeasure would exempt “priorconverted” farmland, butland must remain in produc-tion to qualify for exclusion.That restricts landownerdevelopment rights — “thetype of equity a farmer has tosend their kids to school orretire on,” Parrish toldFarmWeek.

And the exemption fails tocover a number of crucial agpractices and protections.Hancock County cattlemanand levee-drainage commis-sioner Sam Zumwalt warnsthe bill “could very easily putdrainage districts and farmingin the river bottoms out ofbusiness.”

“Because I run cattlewhere I can’t run a planterand where there’s a streamand rolling hills, (the bill)will eliminate cattle pro-duction on my farm,”Zumwalt said.

“I’m not sure it won’t putme out of business. It’s themarginal ground you runyour livestock on.”

Senate EnvironmentCommittee member MikeCrapo (R-Idaho) is workingto keep the measure off the

Senate floor. Crapo has puta “hold” on the bill, requir-ing 60 Senate votes for itspassage, and Sen. DickDurbin, a Springfield Demo-crat, reported the measure“isn’t going anywhere rightnow.”

Leaders presented Illinoislawmakers statistics on“waters” covered by the billin each congressional district.Nearly 210,000 miles of per-manent and temporary“waters” statewide reportedlycould be affected.

Batavia Democrat Rep. BillFoster questioned whetherOberstar would “do anythingthat damages farmers.” Henonetheless suggested thenegative impacts the IFBleaders detailed bore furtherconsideration.

Durbin said he favors“some reasonable way to pro-tect wetlands that truly arewetlands,” but agreed restric-tions on manmade structurescould “remove a (pollution)filter for the water.”

“Never take the word ‘nav-igable’ out,” insisted CreteDemocrat Rep. Deb Halvor-son when she met with theIFB group.

Do court ruling, EPAplans muddy ag waters?

The combined impact of the Clean Water Restoration Act(see accompanying story), recent court action, and U.S. Envi-ronmental Protection Agency (EPA) review of selected pes-ticide uses could mean challenging times ahead for growers.

The U.S. Sixth Circuit Appeals Court added an ominousnew wrinkle to the “federal waters” debate in January with aruling that classified a pesticide sprayer and nozzle as apotential “point source” of pollution.

Traditionally, that classification is reserved for waste prod-ucts, American Farm Bureau Federation regulatory specialistDon Parrish told FarmWeek during last week’s Illinois FarmBureau Leaders to Washington tour. The court’s decisioncould impose new regulatory hurdles and costs on producers“as they just try to protect their crops,” he said.

In the wake of the ruling, EPA is developing permits foreight categories of pesticide application “on, over, or nearwater.” EPA ag counselor Larry Ellworth said his agency isfocusing on practices such as pond algaecide use or mosqui-to controls, “not terrestrial (land-based) areas,” and assuredthe IFB leaders “We do not plan to go any further.”

But Parrish remains wary of the potential created by thecourt ruling, especially in combination with potentiallyexpanded federal water jurisdiction.

“We’re talking about processes that have to be done on aminute-by-minute, hour-by-hour basis, not on a weekly ormonthly basis,” Parrish said. “If insects are eating the cropup, you have to get rid of them now. You can’t wait twoweeks to get EPA approval and a permit to spray.

“We can probably keep pesticides out of streams. Keepingthem out of erosion features or grass waterways or out of road-side ditches is going to be highly improbable.” — Martin Ross

Wright: USDA focusing on farm, food connectionsBY KAY SHIPMANFarmWeek

USDA wants to connectfarmers and consumers througha new “Know Your Farmer,Know Your Food” initiativethat will capitalize on interest inlocally produced foods.

“Food and agriculturalissues are at the center of anational conversation,” InterimDeputy Under Secretary AnnWright told participants of theNational Small Farm Confer-ence last week in Springfield.

Wright, a Sangamon Countynative, highlighted several pro-grams and services that Agricul-

USDA allows minimal process-ing of regional fruits and veg-etables for school meals.

Last Friday, USDA launcheda Know Your Farmer websiteintended to pull together alltypes of programs, services,and other information, Wrightadded. She noted the initiativewill use existing farm programs.

“USDA is tuned into that(diverse farmers’ needs) andwants to help them apply forfederal grants and programs to

ture Secretary Tom Vilsack isplanning to help farmers accessmore markets, including schooldistricts and other institutions.

“This administration iscommitted to issues that arevital to small farms and ruraleconomies,” Wright said.

As part of the Know YourFarmer initiative, USDA willstart Farm-to-School “action

teams” to help schools buymore locally grown food forstudent lunches, Wright said.The agency also plans to writepractical guidelines to help dis-tricts buy more food fromlocal and regional farmers.

In addition, USDA alsoplans to allow cutting, slicing,and other processing of localfoods for school meal pro-grams to help meet year-rounddemands in areas with shortgrowing seasons. Currently,

Ann Wright, USDA deputy under secretary for marketing and regulatoryprograms, a Sangamon County native, chats with Curtis Chisley, a meat andproduct specialist with Southern University Ag Center, at the National SmallFarm Conference in Springfield. Wright discussed USDA’s new “Know YourFarmer, Know Your Food” program last week. (Photo by Kay Shipman)

USDA is proposing regulations for a new vol-untary program that would allow selected state-inspected meat and poultry processors to shipproducts to other states. It is part of the “KnowYour Farmer, Know Your Food” initiative.

USDA’s Food Safety and Inspection Service(FSIS) would oversee the program, which wascreated in the 2008 farm bill, to supplement theexisting federal-state cooperative inspectionprogram. The proposal would allow state-inspected plants with 25 or fewer employees toship products across state lines.

“This new cooperative interstate shipmentprogram will provide new economic opportuni-ties for many small and very small meat andpoultry establishments, whose markets are cur-rently limited,” said USDA Deputy Under Sec-retary for Food Safety Jerold Mande.

Currently, Illinois and 26 other states havestate meat or poultry inspection programs thatFSIS has verified as having requirements that at

least are equal to federal requirements.Under the proposed rule, selected processors

will receive inspection services from federallytrained and supervised state inspectors who willverify that the establishments meet all federalfood safety requirements.

Meat and poultry products produced underthe voluntary program will have an officialUSDA inspection mark and will be eligible forinterstate shipment.

State-inspected establishments that are not select-ed, including those with more than 25 employees,can sell and ship products only within their state.

USDA is accepting comments on the pro-posed rules until Nov. 16. Comments may be e-mailed to {www.regulations.gov} or mailed to:FSIS Docket Room, USDA, FSIS, OPPD,Docket Clearance Unit, 5601 Sunnyside Ave.,Stop 5272, Beltsville, MD, 20705. All commentsmust include the initials FSIS and the docketnumber FSIS-2008-0039.

USDA proposes rules to allow interstateshipments from state-inspected processors

FarmWeekNow.comTo check out USDA’s YouTubechannel about the “KnowYour Farmer” initiative, go toFarmWeekNow.com.

help them grow their business-es,” Wright said.

“The USDA is focusingon small- to medium-sizedfarmers and making themvital in their states,” addedRayne Pegg, administrator ofthe USDA Agricultural Mar-keting Service (AMS). Peggencouraged farmers to letAMS know about market-place barriers they encounterand factors that may helpthem reach markets.

GOVERNMENT


USDA designates 58 counties disaster areas

USDA granted Gov. Pat Quinn’s request to designate 58 Illi-nois counties as natural disaster areas because of excessivelywet weather last spring.

The designation also qualifies farmers in 30 contiguouscounties for USDA assistance, including low-interest emer-gency loans.

The designation was based on excessive rain and wet condi-tions that delayed or eliminated spring planting.

Because of the extremely wet conditions, the National Agri-cultural Statistics Service’s Illinois field office estimated100,000 acres of corn were abandoned.

The crop currently is forecast to yield 179 bushels an acre,which means as many as 17.9 million bushels of corn mayhave been lost due to wet weather or flooding.

“While the latest USDA report indicates Illinois will harvesta near-record corn crop, damage assessments conducted thisspring and summer show some farmers may have suffered sig-nificant production losses because of heavy rains,” Quinnsaid.

Illinois marked the ninth wettest April-through-July periodon record. Precipitation totaled 20.94 inches, or 4.74 inchesabove average.

The 58 counties declared as primary disaster areas are:Adams, Alexander, Bond, Boone, Brown, Calhoun, Christian,Clark, Clay, Clinton, Crawford, and Cumberland.

Also: Douglas, Edwards, Effingham, Fayette, Fulton, Gal-latin, Greene, Hamilton, Hardin, Jackson, Jasper, Jefferson,Jersey, and Johnson.

Also: Lake, Lawrence, Lee, Macoupin, Madison, Marion,Massac, McDonough, McHenry, Mercer, Monroe, Mont-gomery, and Morgan.

Also: Ogle, Perry, Piatt, Pike, Pope, Pulaski, Randolph,Richland, Saline, Schuyler, Scott, Shelby, St. Clair, Stephenson,Union, Wabash, Washington, Wayne, and Whiteside.

The 30 contiguous counties approved for disaster assistanceinclude: Bureau, Carroll, Cass, Champaign, ColesCook, DeKalb, DeWitt, Edgar, Franklin, Hancock, and Hen-derson.

Also: Henry, Jo Daviess, Kane, Knox, La Salle, Macon, Mason, McLean, Moultrie, Peoria, Rock Island, Sanga-mon, Tazewell, Vermilion, Warren, White, Williamson, andWinnebago.

Farmers who believe they may qualify for disaster assistanceshould contact their local Farm Service Agency (FSA) office.

FSA staff will verify whether farmers have crops that areeligible for emergency funds.

Applications are considered on a case-by-case basis, takinginto account the extent of losses, security available, and theapplicant’s repayment ability.

Federal stimulus fundsUSDA funding eight Illinois floodplain restoration projects

BY KAY SHIPMANFarmWeek

More than 800 floodplain acres will berestored in Illinois as part of USDA’s firstsignup for floodplain easements, state NaturalResources Conservation Service (NRCS) offi-cials announced last week.

“We’re (NRCS) now ready to acquire the per-manent easements,” IvanDozier, assistant state con-servationist for programs,told FarmWeek.

USDA will invest$1.655 million to buy theeasements and restore 470acres in Adams, Clark, andKendall counties. Another$1.153 million will be usedto acquire easements on394 acres in Lawrence andPope counties. The landowners in those twocounties will complete the restoration.

Illinois NRCS received 320 applications forfloodplain projects, which were narrowed to thetop 10. Landowners involved with eight pro-jects accepted the government’s offer, whilethose with two other projects declined, Dozierexplained.

Nationwide, NRCS is acquiring easements onmore than 36,000 acres in 36 states, includingIllinois.

Under the emergency watershed program,NRCS may acquire permanent easements onprivate land or that owned by state and localgovernments — if the land has been damagedby flooding at least once in the last 12 monthsor twice in the past 10 years.

Landowners retain several rights to the prop-erty, including control of public access and

undevelopedrecreationaluses, such ashunting andfishing.

After NRCShas the ease-ments, theagency will fundthe work torestore the landto act as a

floodplain. In Illinois, the conservation workwill involve clearing debris and replanting nativevegetation, primarily bottomland hardwood for-est species, Dozier said.

Illinois NRCS worked “to ensure the mosteffective use of the funds by enrolling land withthe greatest benefit to protect against futurefloods, improve water quality, enhance wildlifehabitat, and reduce the need for future disasterassistance,“ said Bill Gradle, NRCS state con-servationist.

BY MARTIN ROSSFarmWeek

It’s a matter of timing andcalculated risk for Illinois pro-ducers mulling winter wheatoptions.

Producers have until Sept.30 to purchase crop insurancefor fall-planted 2010 wheat.Oct. 31 is the official finalplant date for insured Illinoiswheat, and producers unableto finish planting within a five-day grace period after that datewill see an automatic drop to60 percent of their insuredcrop guarantee (unless theypurchase a 5 to 10 percent pre-vent plant “buy-up”).

Corn growers, on the otherhand, had 25 days after finalplanting date to get their cropplanted, subject to a 1-percent-per-day reduction in guaran-tees.

Given the wheat insurancewindow and possible crop har-vest delays this fall, Illinoisproducers must consider“whether they can get the cornand beans off soon enough toget wheat planted,” said Illi-nois Farm Bureau risk manage-ment specialist Doug Yoder.

Producers enrolled in the2009 average crop revenueelection (ACRE) program orconsidering 2010 ACRE par-ticipation face an additionalconsideration in weighingwheat planting risks.

According to Yoder’s calcu-lations based on USDA’s Sep-tember crop update, 2009-har-vested wheat stands to receivethe highest average Illinoispayouts under ACRE.

Under currently projectedACRE revenues — the prod-

uct of projected average stateyields and national price esti-mates derived from USDA’sSept. 11 crop report — Illinoisgrowers could see payments of$57 per acre for wheat, $55 foroats, $41 for corn, and $25 forbeans, assuming they also havesubsequent losses on theirfarms in order to qualify.

“Whether you’re currentlyin ACRE or not, that’s some-thing that may go into your

planting decisions for nextyear, because ACRE coverswhat you plant, not your (pro-gram) base acres,” Yoder said.

Sept. 30 also is the deadlinefor ACRE participants eitherto prorate their prospectivepayments across all cropsaccording to each crop’s per-centage of their total plantedacres, or, in the case of grow-ers with more planted acresthan base acres, prioritizewhich crops are to be coveredfirst.

Those who do not desig-nate payment distribution willhave payments automaticallyprorated.

To receive ACRE pay-ments, losses also must betriggered at the farm level,and Yoder suggested produc-ers who experienced thisyear’s “miserable wheat condi-tions” may want to considerprioritizing crops “to makesure they get all their wheatcovered.”

Finally, producers who optto insure crops should careful-ly evaluate which policiesoffer them the optimal pro-tection under their individualcircumstances.

For example, Yoder notedcounty-based group risk planor group risk income protec-tion policies do not offerreplant provisions for fall-seeded crops.

Timing, ACRE key in wheat decisions

‘We’re (NRCS) now ready toacquire the permanent ease-ments.’

— Ivan Dozierassistant state conservationist for programs

‘Whether you’rec u r r e n t l y i nA C R E o r n o t ,that’s somethingthat may go intoyour planting de-cisions for nextyear.’

— Doug YoderIFB risk management

specialist

EDUCATION


Jim Mellor, second from right, livestock manager for Charles Sturt University in Waga Waga, Australia, dis-cusses the impact of the Australian drought on livestock feeding with Western Illinois University (WIU) agri-culture students. The students, from left to right, are: Brad Kreher, New Athens; Luke Simmons, Galva; andAaron Davidsmeier, Virginia. The students participated in a two-week tour of Australian agriculture as partof the study abroad program at WIU. (Photo by William Bailey, WIU)

WIU ag enrollment up, counters universitywide dropBY KAY SHIPMANFarmWeek

Agriculture enrollmentcontinues to climb at WesternIllinois University(WIU), while theuniversity’s overallenrollmentdropped this fallon the Macombcampus.

“The agricul-ture employmentoutlook remainsstrong,” saidWilliam Bailey,director of theWIU School ofAgriculture. “It’stestimony to thetalent of our fac-ulty that studentssee value” of anagriculture degree, he said.

In 2008, WIU recorded thehighest ag enrollment in atleast the past two decades, andthis fall’s enrollment increased5 percent compared with lastyear’s, Bailey said. The AgSchool has 340 undergrduatestudents this year.

Campuswide, WIU regis-tered an enrollment decreaseof 300 students. The AgSchool is now the third largestin the university behind lawenforcement and education,Bailey noted.

On Oct. 15, the Animal Agriculture Alliancewill launch a new program to help college stu-dents become advocates for the agricultureindustry.

College Aggies Online will provide studentswith tools to help them communicate effective-ly with the public, said Kay Johnson Smith, theAlliance executive vice president. The programis a joint venture of the Alliance and AmericanNational CattleWomen Inc.

Participants will receive training and instruc-tions from industry professionals and haveaccess to a private forum to post information

about current and emerging issues facing farm-ers and ranchers.

Ag-related clubs from all universities with anagricultural academic program may register forthe program. All members will receive individ-ual accounts, where they can customize theirhomepage and upload information.

Interested collegiate clubs or departmentsshould contact Krissa Thom [email protected] or 703-562-1410. Those interested in becoming a programsponsor should go online to{www.animalagalliance.org} for information.

Enrollment increasedacross the board in differentagriculture majors. Interest inanimal science remains partic-

ularly strong, Bai-ley said. The hor-ticulture programnoted a bigimprovement instudent enroll-ment, he added.

Overall, WIUregistered anincreased numberof ag studentstransferring cred-its from commu-nity colleges alongwith more fresh-men students.“We look at trans-fer students as animportant part of

what we do,” Bailey said.To recruit new students, the

Ag School sends its studentsto speak with high school stu-dents.

In addition, the Ag Schoolalso is reaching out to studentsfrom “non-traditional areaswith non-ag backgrounds,”Bailey said. Those studentsmay be interested in the envi-ronment and different sourcesof renewable energy.

“They see problems andwant to become part of thesolution,” Bailey concluded.

High school ag students reflect changesIllinois high school agriculture students, much like the state’s

ag industry, don’t reflect their parents’ generation.Only 10 percent of the families of today’s high school ag stu-

dents earn more than half their income from farming, meaning90 percent of their fellow classmates don’t live on farms, basedon data from the Facilitating Coordination in Agricultural Edu-cation (FCAE).

Jay Runner, FCAE coordinator, reported recent trends duringa meeting of the Illinois Leadership Council for AgriculturalEducation (ILCAE) and the Illinois Committee for AgriculturalEducation (ICAE).

“What we think is important is that very few (ag) studentsdepend on farm income and are not taking agriculture tobecome farmers. They have other reasons,” Runner toldFarmWeek.

Based on 2008-2009 school information (the most recentavailable), 25,968 high school students and 3,080 junior highschool students were enrolled in Illinois ag classes. The 319 highschool agriculture programs across the state averaged 21 stu-dents per class and 91 students per program. FFA chapter mem-bership averaged 57 students per school.

Of high school ag students, 42 percent receive considerablenet earnings — $10.5 million overall — from their supervisedagricultural experience (SAE) projects.

The students’ SAE income is taxable and helps support localschool districts among other local government services, Runnernoted. “We’re (ag ed programs) really self supporting and gener-ating dollars out here with SAEs,” he added.

Illinois ag students aren’t the only ones who are changing.Slightly more than half of all Illinois ag teachers, 52 percent, are40 or younger. Thirty-one percent alone are 30 or younger and35 percent have five or fewer years of teaching experience.

“Demographically, we’re (ag teachers) pretty young out there,”Runner said. “It’s very young as a profession.”

Ag classes and the credits students may earn also are chang-ing. About 77 percent of agriculture programs also award sci-ence credit, and 20 percent award consumer education credit.Meanwhile, 3 percent award math credit and 1 percent eachaward language arts and social sciences credit. — Kay Shipman

Program to help college students be ag advocates

Bernie Walsh, Durand, Winnebago County: Just anotherday in paradise here in NorthernIllinois, still no rain for the monthof September and steady tempsin the mid-to low 70s. The soy-beans are turning fast now withsome early fields droppingleaves and starting to dry down.The corn also is turning color,

more every day, but is still very wet and along way from being dry enough to combine.Our local equipment dealer said his salesare down because several of his customersare upgrading their corn dryers instead ofreplacing equipment.

Pete Tekampe, Grayslake, Lake County: A dry, cool weekin Lake County. No rain, butheavy dew every morning. Thetemperatures are in the mid-70sduring the day and the low 50s atnight. Corn and beans havebasically shut down and are try-ing to mature. Hopefully, we willhave at least another three

weeks before frost. They are calling for rainMonday (today). That would be the first rainwe have had in more than two weeks. Bepatient and have a great week.

Leroy Getz, Savanna, Carroll County: Dry and sunny withno rain yet in September. Corn isnearing black layer. Choppershave been filling silos. Seed cornis being picked. Soybeans arejust plain dying with some ofthem losing their leaves. Haymaking is coming to a close.There seems to be plenty of deerand turkey running everywhere.

Ron Frieders, Waterman, DeKalb County: Another weekof good weather has helpedcrops mature. They are still atleast two weeks behind normalfor this time of year. Usually bynow a few fields ofearly-soybeans would have beencombined and someone wouldbe trying to do corn, even if it’s a

little wet. This year, most beans are greenwith some yellow leaves and corn is way toohigh in moisture. There is a seed corn pro-cessing plant in Waterman and trailers piledhigh with ear corn are rolling into town, so Iguess harvest is coming, just not here yet.

Larry Hummel, Dixon, Lee County: It’s a race. Crops real-ize the end of the season isdrawing near and they are doingeverything they can to reachmaturity before Jack Frost catch-es them. The majority of the soy-beans have started to turn yel-low with a few dropping leaveswhile others are still a deep, dark

green. Corn is acting more like the tortoise inthe race. Plotting along, slow but sure, as themilk line works its way down the kernel. Early-planted corn is nearing the finish line andlooking pretty good. Corn planted the end ofMay and into June better pick up the pace tohave a chance of beating ole Jack Frost.

Joe Zumwalt, Warsaw, Hancock County: What a beautifulweek it was in Western Illinois.Warm, dry, breezy conditionshave helped to mature a crop,which seems to be laggingbehind. Producers are gettinganxious to head to the fields, butvery few have begun harvest.Those who have are shelling

some above-average-yielding corn withmoistures in the mid- to lower 20s. There willbe a lot of beans cut before the majority ofthe corn is shelled. We are hoping to startwith some corn as you are reading thisreport, but will switch to beans before theend of the week. I am sure looking forward tobeing in a combine again. I’m just thankful fora crop to harvest this year.

Ken Reinhardt, Seaton, Mercer County: Yet another dryweek. Seed corn is the only har-vest activity at this point. A fewearly soybeans may go thisweek. Otherwise, there will bevery little harvest this month. Thedriest corn in the neighborhoodhand shelled at 30 percent. Cornyields will vary widely through the

field according to drainage. Soybean yieldsare, as usual, hard to guess. The late drynessand cold nights along with heavy diseasepressure don’t seem very positive for them.

Tim Green, Wyoming, Stark County: Another very pleas-ant week. A lot of people aretalking about starting to pickcorn around the first part ofOctober — easily two weekslater than usual and for some itis three weeks later. It’s going tobe a long fall. Corn doesn’t seemto be drying down very fast. The

days aren’t warm enough, the wind is notblowing, and the mornings are pretty dewy.The big talk has been white mold and howbadly it is starting to show up on almost halfof the bean fields. There are people are talk-ing 50 percent loss of yield on those fields. Itlooks like it could be bad.

Mark Kerber, Chatsworth, Livingston County: It was agood, warm week to start dry-down of this crop about to beharvested. Soybeans reallyturned this past week. Whitemold and aphids have been aproblem attacking some soy-bean varieties and fields. Cornhas a long way to go before it is

dry enough. Ears on the inside of the fieldsare much smaller than the outside rows ifyou are windshield-checking fields. Myneighbor tells me you are not a full-timefarmer unless you own a Batwing mower,auger cart, and semi. Well, we are officiallythere as we recently purchased a truck andtwo trailers. Need a load of rock? A lot ofroadside mowing is taking place. It’s ascramble to see who can be the last to mow.I know one farmer who mows after harvest,he could be in snow this year. Markets had agreat one-day upsurge on a frost scare.

Ron Haase, Gilman, Iroquois County: Most of the cornfields in the area are in the dentstage (R5). The milk line is any-where from 10 percent to all thedown the kernel or black layer(R6). Most corn has the milk line20 percent to 50 percent of theway down the kernel. Diseasesand remobilization of nutrients to

the filling ear have caused deterioration ofplant health. I have heard of three fields ofsoybean being harvested this past week.Most soybean fields are in the full seedgrowth stage (R6) with other fields enteringinto the beginning maturity growth stage(R7). The local closing prices for Sept. 17were $3.03 for nearby corn, $9.51 for nearbysoybeans, and $9.36 for new-crop soybeans.

Brian Schaumburg, Chenoa, McLean County: Waiting forthe first combines to roll as mosthand samples are still over 30percent. Scouting has shown alot of disease in all crops. Itlooks like spraying will pay off inboth yield and harvestability.Seed prices for 2010 are of par-ticular interest as farmers con-

template their next move. We were glad tohost the Unity Community Center (“The bestplace yet!”) kids for a farm visit. Corn, $3.04,$3.15, January soybeans, $9.53, $9.32,January wheat, $4.06.

Steve Ayers, Champaign, Champaign County: I didn’tthink I would say this in 2009, butwe need a rain! Forecasters arepredicting rain off and on thisweek with temperatures in the 55-to 80-degree range. Looks likethe northern Midwest potential for“frost on the pumpkin” has beenpushed back to the last week of

September, allowing more time for cropdevelopment. There is more confirmation ofwhite mold in soybeans and reports of diplo-dia ear rot in corn. Seed corn harvest contin-ues with normal yields and a few loads ofcorn and beans are dribbling in. Farmers arebusy preparing for harvest. Think safety!

Wilfred Dittmer, Quincy, Adams County: A cool 46 degreesthis Friday morning which makesthe week almost an exact carboncopy of the previous week with norain at all and only 0.2 of an inch ofrain for the month. Corn is dryingdown fairly well and a few farmershave dusted off the corn-headsnouts. Some to the south already

have a good start. Soybeans are another sub-ject, with most fields still green. Only occasion-ally do you see a field that may be starting toturn. Do be careful out there when themachines do get up to speed. Summer will beover tomorrow; where did it go?

Harry Schirding, Petersburg, Menard County: Rainfall lastweek, none. Total rainfall forSeptember, 1.7 inches. Normalrainfall for September, 3.3 inches.The change in maturity of cornand soybeans is very noticeable.Most of the harvested corn hasbeen testing between 28 and 30.A report from the south side of the

county stated moisture levels were in the low20s. Early indications are that grain quality maynot be as good as normal. More soybeanplants are dropping leaves with a few fieldsnearly 75 percent defoliated. White mold wasidentified in a 40-acre field last week. With mostcrops one to two weeks behind, producers arehopeful frost comes late this year. The last cut-ting of hay is being completed as producersprepare for harvest. Corn nearby, $3.12, up 8cents; soybeans nearby, $9.47, down 70 cents;corn for January, $3.12, up 15 cents; soybeansfor January, $9.52, up 29 cents.

Tom Ritter, Blue Mound, Macon County: Harvest started fora few individuals in the area late inthe week. The majority of the cornto be harvested will not beattempted for another 10 days totwo weeks. There was a report ofone field of soybeans, approxi-mately 10 miles away, that washarvested, but, again, it will be a

week to 10 days before soybean harvest willbe in full swing. Yield reports on corn becauseof the very limited harvest have been mixed.Very early varieties of corn tend to yield a littlebit lower in this area, but there also have beensome problems with white mold and lower testweights. It is too early to tell whether that willfollow through on corn that will be harvested alittle bit later. Most farmers are anxious to getstarted. Trying to be patient, and not wanting toharvest too high of moistures.

Todd Easton, Charleston, Coles County: Crops here in ColesCounty are steadily coming tomaturity aided by the recent heatand lack of rainfall. Our growingdegree days for late-May plantedcorn are approaching 2,500 units,which puts the majority of the areacorn crop at physiological maturityin less than two weeks. Soybeans

are turning rapidly because of the hot and dryconditions. We did not get the late rain I washoping the beans would get. There was achance for some this past weekend, but it maybe too late to do very much good. By nextFriday, I’m sure there will be a scarce combineor two running with many more following thenext week. I can hardly wait for the combinemonitors and truck scales to tell us how ourcrops dealt with such a uniquely challengingyear and what we can learn from it.

Jimmy Ayers, Rochester, Sangamon County: This past weekwas sunny and warm during thedays. The evenings were cool.There has been a considerableamount of fog and a lot of moistureduring the evenings as well. Thecrops are beginning to show signsof maturity. Some of the beans arestarting to get some yellow

splashed here and there. A few have beenshelling corn. Moistures are running 19 to 24 onthose that I have heard about. A lot of peoplehave tried to shell their early corn and moisturesare running from 28 to low 30s. Farmers are anx-ious to get running. Yields are pretty respectablefor the first round of the corn that was plantedearly to mid-April. If we can get another week orweek and a half without a frost, we can have afairly decent crop. I’m not sure what the later-cornwill end up yielding. Be careful and think safety.

David Schaal, St. Peter, Fayette County: No rain for the week,but some would sure be wel-comed. Temperatures are cool of amorning, but afternoons seem towarm up quite well. Yards are a lotmore brown than the crops are inthe fields. Corn is maturing anddying at the same time. Maybemore dying than maturing due to

dry weather. The lack of rainfall in the last twoweeks also has shaved bushels off of our soy-bean crop. Soybeans here do not look very goodin the middle of the day with the sunshine beat-ing down on them. It is like they are giving up.Bean yields are not going to be worth a hoothere if water doesn’t come soon. The countycrop tour is Thursday and we will get a betterhandle on stuff then. Things in the northern partof the county are probably somewhat better.Have a safe week.

CROPWATCHERS


Kevin Raber, Browns, Wabash County: A very nice weekhere in Southeastern, Illinois. Norain, but the weather was excel-lent for field drying of corn. Therehave been several acres of cornshelled. I’ve heard of somemoisture as low as 18 percent.The early beans really maturedin the last week. Fields I thoughtwould be two or three weeks

away look close to harvest. The warm weath-er and soil moisture are helping thelate-planted beans.

Dean Shields, Murphysboro, Jackson County: We got0.8 of an inch of rain lastweek. We needed a little bit ofmoisture and it was wel-comed. Things are movingalong. A few guys are startingto pick a little bit of corn.Leaves on the soybeans areturning yellow and it looks like

it won’t be too long before some beansare cut in the area. Harvest is just aroundthe corner for us. We will see what theyields do. Everyone is interested in findingout. Looks like the next few days will bespent finishing up repairs on some stuffand getting ready for harvest. Everyonehave a safe harvest.

Ken Taake, Ullin, Pulaski County: We had some show-ers early in the week. Wereceived about 0.6 of an inchof rain total. People were get-ting back in the field aboutWednesday. We’ve shelledabout 100 acres of corn thatwe planted early. The poorstand due to wet weather hurt

the yield, but it yielded slightly below aver-age, so we weren’t too upset. Other cornwe have was planted three weeks later,but the standability looks poor — like it’sstarting to fall. I see a lot of corn borerdamage. We were hoping to start that cornFriday (Sept. 18). A few people have cutsome early soybeans. I haven’t heard any-thing about yields. Our early beans aregetting close to ready, and we will proba-bly start trying to cut some of those thisweek.

Ted Kuebrich, Jerseyville, Jersey County: Corn harvesthas started in Jersey County. Acouple of farmers are shellingsome of the early-planted corn.The moisture is running about19 percent down in the IllinoisRiver bottom and in the low 20son the eastern part of JerseyCounty. One of the farmers that I

spoke to said his corn is yielding 200 bushelsat 15 percent moisture. Beans in the countyare at different stages of maturity with theleaves on early-planted beans turning brownand falling off and the late-planted beans stillblooming. Prices at Jersey County Grain,Hardin: cash corn, $3.33; new corn, $3.15;January corn, $3.20; June corn 2010, $3.46;cash beans, $9.72; new beans, $9.56;January beans, $9.65; June beans 2010,$9.31.

Bob Biehl, Belleville, St. Clair County: Another dry, mildweek. Corn is slowly ripening,but slow is the key word. Latecorn has developed some leafdisease, but cooler weather haskept it from spreading too much.Corn overall, considering plant -ing date, looks really good. Earshave some really nice size to

them. Whether it will beat the frost remainsunanswered. Beans remain grass green.Aphids continue to be a problem in this area.Right now, they are attacking the wheat stub-ble beans more so than the first crop. Sprayor not to spray is the debate. Most have cho-sen not to as the crop is not stressed andfarmers are tired of spending money on acrop that gets cheaper every day. Double-crop beans are still putting on pods, andthere is no question that they will get frozenbefore maturity. First-crop beans look goodwith very little leaf disease, but crop heightmay be the limitation for larger yields. Ourmain activity has been electrical work on adrying and storage setup that we have updat-ed. Also, we cleaned out some old-crop cornlast week on the one-day rally.

Rick Corners, Centralia, Jefferson County: Ugh. No rain.Bad mood. No talk.

Doug Uphoff, Shelbyville, Shelby County: Harvest is aboutto begin, and we are startingabout a month late, so please becareful. Corn moisture droppedconsiderably last week, but it isstill high — anywhere from 27 to35 percent on our farms. I haveheard of 17 to 22 percent mois-ture from a local elevator. There

was some silage harvested last week inShelby County. Ear set is really high and it wasreported to me that the corn was not as goodas last year when they cut silage. Soybeanaphid populations exploded in the southernhalf of the county and many farmers were hav-ing insecticide applied either by plane or fieldsprayers. Rain last month was 2 inches andwe have had 0.02 of an inch this month. Busygetting equipment ready and scouting fieldsfor problems and trying to find dry corn to pick.Soybeans are three weeks off around us butGroup II beans are changing fast. Cash corn,$3.15; fall corn, $2.99; January 2010 corn,$3.14; fall 2010, $3.46; cash beans, $9.53; fallbeans, $9.38; January 2010 beans, $9.51; fall2010, $8.82; old wheat, $3.04; new wheat,$4.16; truck diesel, $2.74; B11 diesel, $2.60;gas at pump, $2.23 to $2.45.

Dan Meinhart, Montrose, Jasper County: Another very dry,cool week. Silage choppers arerunning in the late-May-plantedcorn that survived. The June-planted corn is still too wet tochop. Soybean fields are startingto turn on the late-May and early-June-planted beans. The majorityof the beans are still blooming

and setting pods. The pods that are presentare very flat. The majority of beans have avery long, long way to go yet and are desper-ately needing a rain. A very large area has nothad a significant rain for seven weeks. Seedwheat companies estimate only 50 percent ofthe wheat will be planted as compared to lastyear due to the extremely late soybean crop.USDA has finally recognized the fact thatthere are many thousands of intended cornacres that have not been planted to corn. Butit has yet to recognized the fact that there arethousands and thousands of acres that havenot been planted to anything. USDA hasdeclared 58 Illinois counties disaster areasplus 30 adjoining counties eligible for disasterbenefits (see page 4), yet it predicts a bumpercrop. The weather forecaster gave us a slightchance of rain over the week end. Cooler tem-peratures are expected for this week.

CROPWATCHERS


Reports received Friday morning.

Average first frost dates

Source:Illinois StateWater Survey

When is your corn crop safe from frost?The Illinois State Water

Survey has compiled someballpark estimates on thetypical first frost in differ-ent areas of Illinois,according to Bob Frazee,University of IllinoisExtension naturalresources managementeducator.

For Northern Illinois,the first frost usuallyoccurs during the firstweek of October; for Cen-tral Illinois, usually thesecond week of October;and for Southern Illinois,typically the third week ofOctober.

For more specific datafor your area, go online to{www.isws.illinois.edu/atmos/statecli/Frost/frost.htm}.

How might frost poten-tially impact the maturingof the 2009 corn crop?

Frazee reported the samecriteria that are used todetermine when the corncrop is safe from frost dam-age also can be used to helpdetermine when the corn

to two weeks before black-layer maturity, a 4 to 5 per-cent grain yield reductioncan be expected.

However, Frazee cau-tioned that if the corncrop is killed three weeksbefore physiological matu-rity, the yield loss mayapproach 10 to 20 percentwith considerable reduc-tion in grain quality.

A corn crop killed by

crop is mature and can beharvested.

Physiological maturity isthe term used to describe thepoint of grain development atwhich the kernels have maxi-mum dry weight and the plantis safe from yield loss by frost.The formation of the blacklayer is the signal of full ker-nel maturity.

Kernel moisture usually

is around 30 to 35 percentat physiological maturity,depending upon thehybrid. Corn harvest canbegin at physiologicalmaturity, but many farmersusually choose to let thecorn dry in the field until itreaches 22 to 28 percentmoisture.

According to universityresearch, if a corn crop isprematurely killed 10 days

freezing temperatures onemonth before normalmaturity (or 30 to 35 daysafter silking) is reduced inpotential grain yield by 35to 50 percent, and the grainprobably is not marketable.

After considering allthose facts, Frazee said heexpected an early frost thisyear would have a majorimpact on most cornfieldsthroughout the state.

The Horsemen’s Council of Illinois willsponsor an Equestrian Lifestyle Expo Nov.21-22 at the Lake County Fairground’s ExpoCenter, Grayslake.

The all-breed equestrian trade show willoffer products and services for horse own-ers.

Vendors will include those with Englishand Western tack and clothing for all breeds;feed, supplements, health care products; andfacilities, equipment, and stable supplies,such as barns, stalls, fencing, generators, andgators, according to Joy Meierhans, Expomanager.

The Expo will not have horses on site, butwill have a large educational component, fea-turing clinicians, nutritionists, veterinary spe-cialists, and researchers, according to Meier-hans.

Complete exhibitor and attendee informa-tion will be posted as it becomes availableat {www.horsemenscouncil.org}.

Exhibitor application forms will be thefirst information to be posted, followed byspeakers and their program listings.

For exhibit information, contact Meier-hans at 630-557-2575or [email protected].

Chicagoland Equestrian Expo movesto new Lake County fairgrounds

GRAIN


IDOA launches pilot grain inventory program

The Illinois Department of Agriculture (IDOA) haslicenses for:

• 297 grain warehouses;• 309 grain dealers;• 1,045 licensee locations; and• 1.27 billion bushels of permanent storage capacity.

Source: IDOA warehouses bureau

BY KAY SHIPMANFarmWeek

The state’s grain industry isadopting a state-of-the-artelectronic program to bettermanage its grain inventory,said the chief of the Illinois

Department of Agriculture’s(IDOA) Bureau of Warehous-es.

“It’s a change in the waywe’ve done business — a goodchange,” Stuart Selinger toldFarmWeek. “We’re really pro-viding a powerful tool to the

industry to better managegrain quality and quantity.”

Selinger was not aware ofany other state using a similarelectronic inventory system.Illinois-licensed grain elevatorsand warehouses are participat-ing voluntarily, but Selingeranticipated the program’s usewill be mandatory in 2010.

Participating elevator andwarehouse operators takemonthly measurements ofgrain and enter the data intothe new computer program,dubbed ExamNet.

The program, which appliesmore than 20 years of IDOAexaminers’ formulas of grainmeasurement, computes theamount of grain, Selinger

explained. “All the configura-tions of grain (in a bin orwarehouse) can be easily calcu-lated,” he added.

The program offers an addi-tional safety bonus because itreduces the number of timesIDOA examiners have to enterbins to take measurements,

Selinger noted. “We want to emphasize the

Bureau of Warehouses is notgetting out of the grain inven-tory business,” Selinger said.“We will at least annually testtheir (licensees’) inventory.”IDOA examiners also will dorandom spot checks to ensure

the accuracy of self invento-ries.

State Agriculture DirectorTom Jennings added the newprogram will save examinerstime during an inspection andallows them to spend moretime focusing on licensees’financial matters. IDOA exam-iners also will complete fullinventory exams at elevatorsaround the state that are notparticipating in the pilot pro-gram.

Selinger pointed out eleva-tor and warehouse operatorswho use ExamNet will have 12or 13 measurements a yearinstead one or two. Additionalregular information is espe-cially important as grain oper-ations become larger and havemultiple sites, he said.

Currently more than 19 ele-vators are participating volun-tarily in the pilot program.IDOA installed the softwareand trained their personnel onits use.

“We welcome anyone toparticipate and jump onboard,” Selinger said.

State grain industry at a glance

Short-term energy outlook, price drops

The short-term energy out-look released this month by theEnergy Information Adminis-tration (EIA) predicted theprice of gasoline and naturalgas will get cheaper in comingmonths.

EIA projected the monthlyaverage price of regular gradegasoline in the U.S. will declinefrom an average of $2.62 pergallon in August and Septem-ber to an average of $2.56 pergallon in the fourth quarter.

Meanwhile, the spot price ofnatural gas was projected toaverage $2.32 per thousandcubic feet next month which, ifrealized, would be the lowestmonthly average spot pricesince September 2001.

EIA also projected retailprices for electricity next yearwill show a year-over-yeardecline for the first time since2003.

However, fuel prices wereprojected to go back up nextyear from an average of $2.34per gallon for gasoline to $2.70in 2010. Diesel fuel prices werepredicted to increase from$2.47 per gallon this year to$2.88 next year.

The increase in fuel priceswas tied to a projected increaseof crude oil prices from anaverage of $60.12 per barrelthis year to $72.42 next year.

The prices are still wellbelow the peaks in 2008 whengasoline averaged $3.26 pergallon, diesel fuel averaged$3.80 per gallon, and oil aver-aged $99.57 per barrel, accord-ing to EIA.


MARKETS


ISA strives to boost state’sannual soybean productionBY DANIEL GRANTFarmWeek

The Illinois Soybean Asso-ciation (ISA) recently launcheda new program designed toput an end to the so-called“yield plateau.”

ISA begin-ning with the2010 growingseason willhost a YieldChallenge thatwill combinethe talents offarmers, stu-dents, andagribusinessesin an attempt to boost soyyields in Illinois.

Winners of the challengewill receive prizes (applica-tions are due by April 1), butthe ultimate goal of the con-test is to spotlight yield-boost-ing methods that can be dupli-cated around the state, accord-ing to Ron Moore, a soybeanfarmer from Roseville who lastmonth was elected chairmanof ISA.

“Hopefully, the successesof the Yield Challenge can berecreated around the state andultimately we can increase pro-

duction,” Moore told Farm-Week.

Moore believes soybeanyield increases must be able tocompete with those of corn inorder to maintain or increasesoy acreage in Illinois.

At his farm in WarrenCounty, Moore recentlyachieved record yields forboth crops. However, his soy-bean yield was just a half-bushel better than his previousrecord while his corn yieldincreased by about sevenbushels per acre from the pre-vious high on his farm.

In fact, Moore said he hasharvested record corn yieldson his farm four out of thepast five years.

He said he believes a key toincreasing acres for soy pro-duction rests with the abilityto boost the competitivenessof beans with corn on a per-acre basis.

Participants of the chal-lenge will receive free soil test-ing for nutrients and soybeancyst nematodes along with freeprotein and oil analyses ofharvest samples.

For more informationabout the 2010 Yield Chal-

lenge, call 888-826-4011 orvisit the website{www.soyyieldchallenge.com}.

ISA is striving for increasedsoy production as demand isexpected to increase forexports and for feed in thegrowing aquaculture industry,which Moore described as“one of the fastest growingfood sectors for human con-sumption.” Soy exports thepast year set a new record.

“One of the bright spotswe’ve seen is the export mar-ket to China. They (the Chi-nese) seem to continue todemand soybeans for theirlivestock operations and forhuman consumption,” Mooresaid. “We see that (demand)only getting higher. That’s whywe have to continue to workto increase production in theU.S.”

Other farmer leaders whowere elected last month to ISAposts are Mike Cunningham ofBismarck (vice chairman),Doug Winter of Mill Shoals(secretary), and Bill Wykes ofYorkville (treasurer). MattHughes of Shirley was re-elected as the ISA assistantsecretary/treasurer.

Poultry-auto partsbrouhaha spinoffof House proposal?

The Chinese government has threatened to restrict U.S.imports of chicken and auto products after the Obamaadministration put punitive sanctions on Chinese tireimports.

The controversy is the latest spinoff of an ongoing face-off over Chinese poultry that has heavily influenced recentSino-U.S. ag trade relations.

The Obama administration announced Sept. 11 it wouldimpose stiff tariffs on Chinese-made tires for the next threeyears due to a jump in Chinese tire imports.

The Chinese Commerce Ministry then announcedplanned procedures against U.S. chicken and auto productimports, claiming it had received complaints from local pro-ducers that U.S. goods were being “dumped” in China atbelow-market prices.

House Republicans and senators from both parties arepushing to end a two-year ban on Chinese processed poultrythat would be continued in House-passed fiscal 2010 agappropriations legislation. A Senate-passed version of thebill would undo the ban, returning authority to determinethe safety of Chinese poultry products to USDA.

The Obama administration objects to poultry prohibi-tions in the House bill, and China has filed a complaint withthe World Trade Organization charging they violate traderules.

A House-Senate conference committee is expectedto resolve the issue later this month, but the Chinesepoultry ban has strong backing from House AgAppropriations Chairman Rosa DeLauro — a majorHouse food safety advocate — and other Democratson the panel.

Ron Moore

COMMODITIES


BY JEFF BUNTINGI’m starting to see signs of

fall: soybeans turning, cornlooking golden, and highschool football games on Fri-day nights.

The latest issue of the Illi-nois crop progress and condi-tion report places corn matu-rity about one week behindlast year and about threeweeks behind the five-yearaverage. There have beenyears with late harvests, butthe crop those years was fur-ther along than this year’scrop.

As I look at hybrid plotsacross Illinois, yield potentiallooks pretty good. This indi-cates we have better hybridstoday, but we continue to dealwith the perennial issues suchas nitrogen deficiency symp-toms, corn leaf diseases suchas gray leaf spot and northerncorn leaf blight, and ear rotssuch as Diplodia.

It will be important tomonitor fields with diseasesand plan to get to them earlyto minimize harvest loss.

maturity takes about 350GDUs.

Taking this into considera-tion, it will be important to getto maturity before frost toavoid reduction in kernelweight if frost comes in dur-ing the dent stage. If you’reinterested in knowing whatstage your corn crop is in, takea couple of ears to your localFS crop specialist.

Soybean growth and devel-opment also are affected bycool temperatures. Soybeansenescence is about two weeks

behind the five-year average.We have all heard of the“record” yields that are outthere for both the corn andsoybean crops, but we do havea long way to go.

This might be like last yearwith good weather, but firstwe need the crop to be ready,and that’s something we can’tcontrol right now.

Jeff Bunting is GROW-MARK’s seed corn product manag-er. His e-mail address [email protected].

The bigquestion is:Do we haveenough timeto finish thecrop? If welook at thelong-rangeforecast (thenext 10 daysfrom Sept.

16), it appears we will accumu-late about 112 to 160 growingdegree units (GDU) in Illinois.

If 44 percent of the corncrop is in the dough stage

(starch accumulation has nowcaused a milky inner fluid tothicken), the kernel moisture isroughly 70 percent. To reachphysiological maturity (36 per-cent kernel moisture), we needto lose 34 percent of thatmoisture.

It’s no surprise that cornreaching physiological maturi-ty in early September will drydown faster than corn reach-ing maturity in late September.From dough stage to dentstage takes about 250 GDUs,and from dent to physiological

Jeff Bunting

Auction Calendar

Tues., Sept. 22. 80 Acres EdgarCounty. Soy Capital Ag Services

Sat., Sept. 26. 8 a.m.Consignment auction, harvestequipment. Route 9 Auction

Co., CANTON, IL.Sat., Sept. 26. 9:30 a.m.

Miscellaneous. Chris Fowler,ALEXIS, IL. Gregory RealEstate and Auction, LLC.

Sun., Sept. 27. 11:30 a.m.Collector tractors, misc. James

Stilla Jr., MILWAUKEE, WIS.Gordon Stade, auctioneer.Tues., Sept. 29. 10 a.m.

Livestock equipment. GaryEdwards, Pure Cattle LLC,

CAMERON, IL. Van AdkissonAuction Service.

Tues., Sept. 29. 6 p.m. Realestate. Indiana State University,CASEY, IL. Stanfield Auction Co.

Sat., Oct. 3. 9 a.m. Farmmachinery and equipment.

Sunny Brook Farms, AVA, IL.McCormick Auction Service.Sat., Oct. 3. 10 a.m. LandAuction. Kenneth and Sam

Gehant, MENDOTA, IL. EspeAuctioneering.

Sat., Oct. 10. 9 a.m. Realestate and personal property. URalph Galloway Trust, SESSER,IL. Jamie Scherrer Auction Co.Mon., Oct. 12. 7 p.m. Land.

Van Kalker Family, L.P.Gordyville Auction Arena, GIF-FORD, IL. Gordon Hannagan

Auction Co.Fri., Oct. 23. 10 a.m. Estateland auction. Ruth B. HammTrust, HUDSON, IL. Haycraft

Auction Co.Sat., Oct. 31. 9:30 a.m.

Consignment Auction. N.I.T.E.Equipment, PECATONICA, IL.

Sat., Nov. 14. 8 a.m. Machineryconsignment auction. Route 9

Auction Co., CANTON, IL.

FROM THE COUNTIES


LEE — In honor ofNational Farm Safety

and Health Week, membersmay purchase “buy 1, get 1free” slow-moving-vehiclesigns available at the FarmBureau office.

MACON — FarmBureau will sponsor

a flu shot clinic from 7 a.m.to 1 p.m. Friday, Oct. 2, atthe Farm Bureau auditorium.Cost for the flu shot is $35and a pneumonia shot is$55. There will be no chargefor those with Medicare.Call the Farm Bureau officeat 217-877-2436 for moreinformation.

PIATT — A meetingto form a Wildlife

Committee will be at 6 p.m.Wednesday, Oct. 14, at the

Farm Bureau office. Newmembers are encouraged toattend, and program ideasfor the year will be dis-cussed. Call the FarmBureau office at 762-2128for reservations or moreinformation.

WILL — The Morn-ing Investment Club

will accept cash or checkdonations for purchasingphone cards to be sent totroops who are serving over-seas. The group is workingwith the American Legionand Operation Care Packagein the project. Mail or dropoff donations at the FarmBureau office. Checks are tobe made payable to “PhoneCards for Troops.” CallNorma Meader at 815-838-

5317 or Mark Schneidewind,Farm Bureau manager, at815-727-4811 for moreinformation.

• The Operation CarePackage program is nowunder way at the FarmBureau office. A list ofitems which will be sent tomilitary personnel forChristmas is available at theFarm Bureau office. Dona-tions may be dropped offfrom 8:30 a.m. to 4:30 p.m.weekdays at the FarmBureau office.

“From the counties” items aresubmitted by county FarmBureau managers. If you havean event or activity open to allmembers, contact your countymanager.

Exploring facts, mythssurrounding hedge apples

At this time of the year, oldfencerows have produced acrop of hedge apples. Hedgeapples are the fruit of theOsage-orange tree, which is amember of the mulberry fami-ly, according to Bob Frazee,University of Illinois naturalresources educator.

During the 19th Century,many Midwestern farmersfound the Osage-orange treeto have admirable qualities,according to Frazee.

The trees are tough anddurable; transplant easily; tol-erate poor soils, extreme heat,and strong winds; and have no

serious insect or disease prob-lems. The trees were plantedwidely as a living fencebecause they provided animpenetrable barrier to live-stock.

According to University ofNebraska researchers, driedhedge wood is the highest inBtu of dried wood from nativetrees when used as firewood.The researchers noted burninghedge wood results in consid-erable sparks so a protectivescreen or shield is neededwhen the wood is burned infireplaces.

It’s the fruit of the Osage-orange, however, that intriguespeople.

Many people buy hedgeapples believing they can repelor control insects, spiders, andeven mice in homes, base-ments, and garages.

Tales about the use ofhedge apples as a pest solu-tion, complete with testimoni-als about apparent success,have been passed around, butthere is no valid evidence toconfirm the claims, accordingto Frazee.

He recounted that a fewyears ago, Iowa State Universi-ty toxicologists extracted com-pounds from hedge applesthat were found to repelinsects when in concentratedform; however, the scientistsreported natural concentra-tions of the compounds inhedge apples were too low tobe an effective repellent.

EPA launchestour to fightclimate change

The Environmental Protec-tion Agency (EPA) last weekkicked off “Change the World,Start with Energy Star” eventsacross the country, encourag-ing kids and their families tofight climate change.

The agency is working withthe Boys & Girls Clubs ofAmerica and Parent TeacherOrganizations (PTO) Todayto involve young people inenergy-efficiency service pro-jects in their communities.

Kids from Boys and GirlsClubs in 60 locations will con-duct energy check-ups athomes and in their communi-ties.

Through PTO Today, EPAwill reach out to 6,000 schoolsacross the country with “GoGreen Nights” to help familieslearn about energy-efficientchanges they can make in theirhomes and schools to saveenergy and help fight climatechange.

SAFETY


Country, IFB, sheriffs seek safer roadwaysGib Cady knows firsthand

the tragedy of rural roadwaycollisions — they make up halfthe incidents to which the Hen-ry County sheriff and hisdeputies respond.

As a lifelongcounty resident,Cady oftenfinds familiarfaces among thevictims of theseincidents. For thosereasons, he plans touse the Sept. 20-26National Farm Safetyand Health Week theme,“Rural Roadway Safety –Alert, Aware and Alive,” to cre-ate added awareness and reducefarm equipment collisions.

According to a Country

The formcould be usedby lawenforcementfirst respon-ders to gatherdata aboutcollision caus-es andinjuries.

Data couldthen be used to increase road-way safety awareness for farm-ers and rural motorists in aneffort to reduce rural roadwaycollisions.

“The worst accidents seem toinvolve farm tractors,” Cadysaid. “It’s difficult to pull up tosomething like that. We need todo everything we can to preventroadway collisions and save lives.

To further increase road-way safety awareness, Cadyand his 76 deputies distrib-uted a new Illinois FarmBureau handout to motoristsat events throughout thesummer.

“Share the Road Safely”includes tips for rural motoristsand farmers.

Financial annual survey, road-way collisions involving farmequipment accounted for 24percent of Illinois farm deathsfrom July 1, 2008, to June 30,

2009. Roadway colli-sions ranked as the

second leading causeof farm deaths behind

tractor rollovers.“Roadway safety

requires a continuous educa-tional program. Our countyFarm Bureau is good aboutmaking sure farmers have new,properly placed slow moving

vehicle (SMV) symbols on theirequipment,” said Cady of thered and orange SMV triangle.

Displaying SMV symbolsproperly constitutes only partof roadway safety education.Cady recently helped the Illi-nois Sheriff ’s Association (ISA)create a new Highway and

Farm Safety Committeeto address rural roadwaycrashes. Cady, ISA pres-ident, wants to find amethod of measuringroadway incidents

involving farm equipmentthroughout Illinois.

The committee and mem-bers of the Illinois RoadwaySafety Group, which includesCountry, have discussed devel-oping a roadway crash form.

Gib Cady

While driving down U.S. 24 in his tractor,Daryl Hodel, took one final look over his shoul-der. Beyond the large wagon he was towing, hesaw his wife, Deb, driving behind him in a pick-up. Two semis loomed behind in the distance.

With his turn fast approaching, Hodelflipped on his left turn signal to warn theoncoming semis not to pass.

Yet the trucks weren’t slowing down. Back in the pickup, his wife realized the trucks

had no intention of slowing. She immediately calledher husband and warned him not to make the turn.

Hodel heeded the warning. Shortly afterhanging up his cell phone, the semis barreledpast and overtook them both.

“The trucks just blew right by,” Hodel remarks.“If I had made the turn, I wouldn’t be here today.”

Situations like this are a common occurrencefor farmers who often put their lives on the linewhen transporting their slow-moving farmequipment along rural roadways. This is espe-cially true during fall harvest.

Hodel, who owns a 2,200-acre farm located nearEl Paso in Woodford County, also wants to boostroadway safety awareness. He has been workingwith the Illinois Farm Bureau to petition manufac-turers to improve farm equipment signaling devices.

According to Hodel, inadequate signal lightson the back of farm equipment could be amajor cause of accidents involving farmersmaking left turns.

“All of the flashers and blinkers are yellow.We need a set of red blinkers with arrows toshow we’re turning,” says Hodel. “Oftentimes,drivers don’t even realize these farming vehiclesare turning, which causes them to pass themachine at unsafe times.”

He believes an independent blinking signal inthe shape of a directional arrow would provideimproved visibility for rural drivers. So far, farm-ing equipment lacks a distinctive, arrow-shapedturn signal. However, progress is under way.

Recently, Hodel and other Woodford CountyFarm Bureau members proposed the signal idea tothe Illinois Farm Bureau Resolutions Committee.

In the meantime, Hodel knows farmers andmotorists share equal responsibility for roadwaysafety.

“Drivers need to keep their distance andremain patient. We don’t always turn at normalplaces. We need to swing right before turningleft because our equipment is so large. Mostimportantly, motorists should make sure toalways closely watch farm equipment’s signals.”

Farmer champions awarenessfor improved roadway safety

Farmers, motorists riskhazardous deer encountersBY MARTIN ROSSFarmWeek

When deer are in a “rut,” motorists can wind up in a ditch —or an emergency room.

Illinois Department of Natural Resources (IDNR) spokes-man Chris McCloud told FarmWeek Illinois deer/vehicle colli-sions have “leveled off ” over the past few years even as deernumbers statewide have remained stable.

According to IDNR, Illinois is home to nearly 800,000 white-tailed deer. Encounters between drivers and deer are at theirpeak in late October through December.

Country Financial alone reported 8,604 Illinois deer/vehicleincidents in 2008, paying out nearly $23.3 million in claims at anaverage $2,707 in estimated damages per incident. That’s com-pared with 9,521 incidents in 2004.

“The most popular places for animal-human contact to occurare either the places with the most humans or the places with themost deer — not necessarily both,” McCloud related.

“There’s obviously a higher rate of deer-vehicle accidents inCook County? Why? There certainly are quite a few deer up inthat area, but there’s also two-thirds of the population of theentire state in Northern Illinois.

“If you have a lot of cars, you’re going to run up the chancesof contacting a deer. In the converse, if you go to an area inCentral or Southern Illinois where there aren’t nearly as manypeople as in Cook County, there may be a lot more deer.”

McCloud noted collisions occur most frequently during thedeer’s “rut,” the period when the hooved herbivores essentiallyhave only two things on their minds — “food and finding a mate.”

That cool-weather imperative distracts them from potentialhazards within their immediate environment, including speedingcars, he advised.

“It’s probably easier to educate humans than it is to educatethe animals,” McCloud said, adding that roadway caution is keyto minimizing deer-driver encounters.

Exercise extra care in areas deer are known to inhabit orwhere they may be prevalent, such as near open spaces, forestedareas, harvested fields where deer may feast on crops or cropresidues, or creeks where animals may stop for refreshment.

“If you’ve seen them in a place once, chances are you’re goingto see them again,” McCloud said. “During the rut, the mostcrucial times are at dawn and dusk, when deer are most active.”

The right way on the roadway Farmers sharing the road with rural neighbors and

passers-through should remember to:• Avoid peak traffic hours and the busiest roads when

moving farm equipment.• Use escort vehicles when moving equipment. Escort

vehicles should closely follow farm equipment to afford thehighest visibility.

• Pull over and allow traffic to pass if road and shoulderconditions are safe enough to do so.

Meanwhile, rural motorists can prevent collisions by:• Taking their foot off the gas as soon as they see farm

equipment.• Passing farm equipment only if they know conditions are

safe.• Exercising extreme caution on rural hills and curves.

El Paso producer Daryl Hodel shares the road with rural neighbors, travelers, and truckers, and a close shavehas made him acutely aware of the hazards of Illinois’ highways and byways. (Photo by Ken Kashian)

PROFITABILITY


Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $14.00-$32.76 $23.8040 lbs. $22.00-$33.00 $29.0250 lbs. n/a n/aReceipts This Week Last Week

36,111 19,948*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 619 Last week 768 Last year 630Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $91-$100. Good andChoice 1-2: 60-90 lbs., $109. Slaughter Ewes: Utility and Good 1-3: $28-$30. Culland Utility 1-2: $28.

Lamb prices

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

This week Prev. week ChangeCarcass $47.88 $47.76 0.12Live $35.43 $35.34 0.09

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn09-10-09 10.2 21.5 40.509-03-09 12.0 17.5 47.7Last year 8.8 21.2 31.9Season total 17.3 221.9 65.7Previous season total 10.0 373.0 44.5USDA projected total 1280 950 2200Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 84.23 84.17 0.06Heifers 84.33 84.48 -0.15

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 Change98.16 98.63 -0.47

CME feeder cattle index — 600-800 Lbs.

Outside influences leave oil market supply, demand in the dustBY JACKIE MCKINNIS

A range-bound trade in theoil complex has caused manyheads to shake in bewilderment.Supply has overwhelmed stor-age; demand has remainedweak; production has keptrolling, albeit at reduced levels;and crude oil has remainedlocked in a $15 range for fourmonths.

Hurricane threats have beenmostly non-existent, andgeopolitics arguably are quiet.Why, then, haven’t the laws ofsupply and demand acted like agravitational force on this mar-ket?

It seems we have beenwatching the dollar index as ourmost reliable indicator for oiltrends. Since about 2002, astrong inverse relationship hasdeveloped between the U.S. dol-lar and crude oil.

The most dramatic illustra-

vocal about moving away from areserve currency, but actionsspeak louder than words.

China has been buying mas-sive amounts of U.S. Treasurydebt. A devaluation of our cur-rency hurts Chinese holdings;

their silent endorsement speaksvolumes.

Supply and demand eventual-ly will win out in the oil com-plex. It certainly worked insummer of 2008 when sky-highoil prices finally crushed Ameri-can demand.

And rampant unemploy-ment has ensured that we havenot yet reverted back to ourold habits.

Demand, while not improv-ing, has quit deteriorating.Supply is leveling out; whilethere are massive stocks, par-ticularly in distillates, the accu-mulation has slowed.

There is little doubt that aseasonal fall decline will occurthis year, but continuing dollarweakness may keep it in check.

Jackie McKinnis is a GROW-MARK energy analyst. Her e-mailaddress is [email protected].

tion of this was the summer of2008 when crude oil reached ahistorical high, and the dollarindex sank to its historical low.

The dollar index is as low as itwas a year ago, although not tothe point it was for five longmonths in 2008.

It has been on a steady orlower trending pattern sinceMarch 2009, with mostly lowerlows and lower highs beingmade. Breakouts from this pat-tern have been few and farbetween.

Oil prices must increase whenthe dollar devalues in order toreimburse the oil-producingnations for their product. Wehave learned over the last fewyears that crude oil (as well asother commodities) is beingused as an inflation hedge when-ever the dollar falls.

When traditional equityinvestments look too risky, it

becomes desirable to flock totangible, heavily used commodi-ties that look like a safe bet.

Some in the world are readyto kiss the U.S. dollar goodbye asthe world’s reserve currency.China, among others, has been

Lower feed costs offer livestock producers some reliefBY DANIEL GRANTFarmWeek

Livestock producers strug-gling for much of the past twoyears with the economic imbal-ance of higher production costsand lower market prices couldsee some relief in comingmonths.

Input costs, particularly feedprices, are trending down andare expected to moderate.

“It looks like input costs willbe lower across the board,” said

ing a teleconference hosted bythe CME Group.

“Corn end users have a dif-ferent set of factors as they haveto compete with ethanol. I thinkthey should look at seasonalcharts” and focus on theirreturn on investment, he said.

Overall, Meyer believes thereduction in input prices won’tbe enough to put livestock pro-ducers back in the black.

USDA this month estimatedprices for the current quarter of

just $39 to $40 per hundred-weight for barrows and gilts(compared to the average of$47.84 last year), $83 to $84 perhundredweight for choice steers(compared to the average of$92.27 last year), and in thehigh-$10-range for Class IIImilk, which is well below thecost of production.

Meyer said he believes thelivestock industry must continueto contract before profitabilitywill return.

Steve Meyer, president ofParagon Economics who, alongwith the Steiner ConsultingGroup, publishes the CMEGroup Daily Livestock Report.

“Hay prices and grain pricesare down and energy prices aredown” particularly for naturalgas, he said.

USDA this month lowered itsaverage farm price for corn, soy-beans, and wheat for the2009/10 marketing year by arange of 20 to 30 cents per

bushel. It also reduced its soymeal price estimate by $10 perton to a range of $250 to $310per ton.

Meanwhile, the average hayprice last month reportedlyreached its lowest level sinceJune 2007 (see graphic).

Hay prices have receiveddownward pressure from lowergrain prices and good pastureconditions that recently wererated 52 percent good to excel-lent, according to Meyer.

“Producers this fall may wantto look for some opportunities tolock in some costs or at least put afloor under costs (using options)the best they can,” he said.

USDA this month raised itsestimate of feed and residual useof corn by 50 million bushels.Overall, crop production thisyear was projected to set a newrecord for soybeans (3.25 billionbushels) and wind up as the sec-ond-largest corn crop on recordat 12.95 billion bushels.

End users “are going to getsome opportunities to buy oatsand wheat at relatively lowprices,” said Jim Bower, marketanalyst with Bower Trading, dur-

Jim Rapp, a grain producer from Princeton, hasbeen elected chairman of the Illinois Corn Market-ing Board (ICMB) for 2009-2010. The BureauCounty corn producer has served on the boardsince August of 2004. He represents corn produc-ers in District 4, which is comprised of Bureau,Lee, Marshall, Putnam, Stark, and Whiteside coun-ties. Rapp replaces Donna Jeschke of Mazon.

Other officers elected to ICMB leadership are:vice chairman, Scott Stirling of Martinton; secre-tary, Jim Robbins of Peotone; and treasurer, BillChrist of Metamora.

A new director appointed to the board is LouLamoreux of Lanark (District 2). Lamoreux repre-sents corn producers in Carroll, Jo Daviess, Ogle,Stephenson, and Winnebago counties.

Four incumbents elected to a new term on

the board were: Donna Jeschke, representingcorn producers in District 5 (Grundy, Kanka-kee, LaSalle, and Livingston counties); KentKleinschmidt, District 8 (Cass, Fulton, Logan,Mason, Menard, Peoria, and Tazewell counties);Leon Corzine, District 11 (Christian, Effing-ham, Fayette, Montgomery, and Shelby coun-ties); and Larry Hasheider, District 14 (Bond,Clinton, Madison, Monroe, St. Clair, and Wash-ington counties).

ICMB is a group of 15 farmers elected fromacross the state charged with creating opportuni-ties for increasing Illinois corn value and use. Theboard administers the state checkoff program;identifies and invests in market development,research, and commercialization activities; andevaluates the impact each investment generates.

Illinois Corn Marketing Board elects officers

PROFITABILITY


AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

Bloomington, Illinois

AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

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

CASH STRATEGISTCorn Strategy

�2008 crop: We still areinclined to hold inventoriesuntil after harvest, or use amarketing strategy that wouldkeep pricing open until laterthis year on inventories youmay still own.

�2009 crop: The trend incorn has shifted, with pricesmoving above key movingaverages. However, actioncould remain choppy withweather uncertainties and freshsupplies entering the pipelines.Use rallies to $3.40 on Decem-ber to price at least half of thecorn you need to sell at har-vest. We aren’t planning addi-tional new-crop sales until laterthis year.

� Fundamentals : Therecent surge in prices was tiedto a frost threat in the north-ern Midwest. Even though itwas removed on subsequentforecasts, there’s still a chancefrost could reduce yield poten-tial slightly. Problems withChina’s crop may not boostexports this year, but will limitthe amount the Chinese mightexport, if any at all.Soybean Strategy

�2008 crop: Now that theold-crop premium has all butd i sappeared , p lan to ho ldremaining inventories untilafter harvest if you have stor-age space. If not, price themwhen November futures areabove $9.50.

� 2009 crop: This pastweek’s surge out of an impor-tant support on Novemberfutures was a good sign the 8-9week low might have beenseen. Still, it’s possible the $9support could be tested againbefore prices move higher. Ifyou need to price soybeans forharvest delivery, use ralliesabove $9.50. But, as long asyou can store beans, hold offmaking additional sales untilafter harvest.

� Fundamentals: Eventhough USDA raised its soy-bean yield forecast, there’s rea-son to believe it won’t go sig-nificantly higher, and eventual-ly could drop lower. Frost issaid to have hit the Chinesecrop, cutting output enough toboost imports higher yet thiscoming year. Early planting

has started in Brazil, but full-scale planting is still more thana month away.

Wheat Strategy� 2 0 0 9 c r o p : W h e a t

appears to have shifted into achoppy, sideways trend. Sup-port is mostly coming fromother markets. Before one cansay the trend has turned up,Chicago December futuresneed to close above $4.81. Westill advise holding off sales,e x p e c t i n g b e t t e r p r i c i n gopportunities later this fall orwinter. Even before advising

catch-up sales, we’re going tosee i f Ch icag o Decemberfutures can attempt to rallyback above $5.

�Fundamentals: Funda-mentally, wheat continues tocontend with abundant sup-plies and slow export business.Some pockets for concern havepopped up in Australia andArgentina because of droughtconditions. India’s plantingsare forecast to decline, too.However, world inventorieswill still be adequate if thosecountries don’t have bumpercrops this year.

The September USDA cropreport provides the first usefulinsight into the production poten-tial for both corn and soybeans.It’s not the yield/production num-bers that are important, but thespecific data USDA released inprojecting those yield/productionforecasts.

The plant and ear populationnumbers for corn and soybeanpod counts for soybeans give theindustry an insight into what onemight expect in subsequent

Basis charts

USDA reports. Even then, there are surprises as

USDA collects a new set of basicdata from the fields each month.And the data collected provides amore accurate insight into yieldpotential.

The corn plant population iswell defined, but the viable earpopulation and ear size can change.Because the ear/plant ratio is sohigh this year, we don’t expect earcounts to go up.

The initial implied ear weightappears to be a fair starting point.If the growing season is extendedagain, it could go slightly higher,but we doubt the final yield comesin more than 2 bushels above Sep-tember’s 161.9. And a reasonableargument could be made that itmay decline slightly.

Because of the lagging develop-ment, the soybean pod count couldstill go somewhat higher, but prob-ably no more than 2-3 percent.

Given that USDA started at arecord high pod weight, we’d beshocked if pod weights didn’tcome down. And, given thoseweights are so far above averageand those in recent years, theycould drop more than pod num-bers go up.

As a result, the yield forecastcould drop as much as 1-2 bushels,enough to cause a significant tight-ening in the fundamental structure.At worst, it’s difficult to envision ahigher yield.

Cents per bu.

Yield hikes not likely

PERSPECTIVES


NAIS should remain voluntaryEditor:

The Montgomery County FarmBureau has many reasons for not sup-porting a mandatory National AnimalIdentification System (NAIS) program,and agrees with Hancock County thatthe NAIS should be kept voluntary.

The NAIS program has cost Ameri-can taxpayers $142 million since 2004and has registered only about 35 percentof total livestock. When these peopleare considered, an incredibly small per-centage of the people affected by theprogram have registered.

The NAIS program is not necessaryto protect our nation’s livestock industryand food supply, and it is flawed. Theprogram should remain voluntary untilUSDA can get all the fine details of theprogram worked out.

We do not support all three phases ofthe NAIS program — premise registra-tion, animal identification, and trackingthe animal’s movements. USDA clearlystates that the NAIS program containsall three of these components and hasnever said it will stop at premises regis-tration.

At a time when livestock producersare struggling, all costs for tags, tag read-ers, and labor will not be shared by any-one other than the producer. There willbe a massive exit from cow-calf portionof animal agriculture if the programbecomes mandatory. The paperworkand liability involved will drive manyolder and marginal producers from theindustry.

If USDA were interested in livestockproducers, consumers, and animalhealth, it would look where problemsare known to exist.

America still produces the safest pro-tein on earth and can continue to do sowithout further government intrusionon our family farms.

If you have registered your premises,fine. You have that right. If one choos-es not to register, he currently has thatright as well. Let’s keep it voluntary.BRIAN NIEMANN,President, Montgomery County Farm Bureau

Who’s responsiblefor mislabeling H1N1?Editor:

The article on how to save the porkindustry seemed to overlook a veryimportant item: Where did the name“swine flu” originate?

I have heard it was from the WorldHealth Organization. If, in fact, it was,we should all worry about that organiza-tion’s competence.

The responsible people should beprosecuted. Some very intense investi-gating is needed. A class-action lawsuitshould be considered.

I suspect it wasn’t a “mistake,” but anagenda to put the pork industry in tur-moil. I know some very good hard-working families who went out of busi-ness because of this.

When we cause financial harm to oth-ers, we or our insurance company paysfor it. We should settle for nothing less.RALPH WILTON,Dahlgren

Letters to the editor

Once upon a time, insects calledlocusts wreaked havoc upon vegetationgrowing in what is known as the GreatPlains region of North America.

Locusts are the type of insect thatmost people call grasshoppers. Butthese are not your average run-of-the-mill hoppers. No, these grasshoppersare what scientists call migratory

locusts.To many people in the

United States, the word“locust” brings to mindinsects that fly around intreetops and produce ahumming sound. Theseinsects are properlycalled cicadas.

However, cicadas andgrasshoppers are totally

different insects, but a historical twist offate resulted in the incorrect use of thename locust.

When early European settlers, whoas it turns out really didn’t know muchabout insects, landed on the shores ofthe New World, they encountered greatmasses of cicadas. The settlers knewsomething about gigantic swarms of atype of grasshopper called a locust inthe old world, so the insects weredubbed with that name.

Of course, the first naturalists whovisited the new world quickly recog-nized that those locusts weren’t locusts;they were cicadas. Nonetheless, theincorrect name has persisted in manyquarters to this day.

When swarms of migratory locustsland, they devour crops and other vege-tation. In the United States, it wasreported sometimes the chewing locustseven ate clothes off the line. Railroadtracks sometimes became so slick fromcrushed locust bodies that trains could-n’t move because of lack of traction.

While periodic swarms of migratorylocusts had no doubt moved across thewestern plains for eons, their devasta-tion became a major problem onlywhen early settlers began to grow crops.

North American settlers of “The Lit-tle House on the Prairie” ilk weren’t thefirst people to suffer from the ravagesof migratory locusts.

One of the 10 plagues visited uponEgypt preceding the Exodus of theIsraelites consisted of migratory locuststhat “covered the surface of the wholeland, so that the land was dark; they ateup the vegetation of the land, and allthe fruit on the trees or shrub in thefields all through the land of Egypt.”

To this day, plagues of locusts stillsometimes move across northernAfrica, leaving destruction in their wake.

It is difficult to say anything goodabout migratory locusts. The insects doprovide a food source to some humansand were a food item approved underthe Judaic law of biblical times. Ofcourse, the spectacular swarms do pro-vide interesting material for “NationalGeographic.”

However, W. Conner Sorensen,author of a book about the history of

entomology called “Brethren of theNet” adds another benefit for theseinsects.

Sorensen states that the establish-ment of the Entomological Commis-sion was due to ravages of the migrato-ry locust, called the Rocky Mountainlocust, and this commission marked aturning point in the scientific organiza-tion within the U.S. federal government.

So what did the landmark Entomo-logical Commission learn or do? Itlearned there was a specific breedingground for the migratory phase of theinsects and that weather patterns affect-ed buildup and movement.

What the commission did other thanprovide information is an open ques-tion, even though a few years later theRocky Mountain locust ceased to be aproblem in the United States. In fact,the insect can no longer be found and isthought to be extinct.

So, where have all the locusts gone?No one knows for sure.

The destruction of the herds ofbison removed the animals that mighthave contributed to suitable breedingsites for locusts. Introduction of large-scale agriculture on the eastern slopesof the Rocky Mountains might havealso played a role.

Regardless, the Rocky Mountainlocusts are nowhere to be found.

Tom Turpin is a professor of entomology atPurdue University, West Lafayette, Ind. Hise-mail address is [email protected].

TOMTURPIN

The U.S. is beginning to grow its energy.Renewable energy consumption jumped to a record 7.3

percent of the total U.S. 2008 energy consumption, accord-ing to preliminary estimates from the EnergyInformation Administration (EIA).

In other words, of the 99.305 quadrillionBtu U.S. energy consumed, 7.301 quadrillionBtu was renewable energy.

Fossil fuels were down to a low of 83.436quadrillion Btu (84 percent) and nuclear fuelconsumption increased to 8.455 quadrillionBtu (8.5 percent).

U.S. energy consumption also has leveledoff. Back in 2000, total energy consumptionhit 98.975 quadrillion Btu for the first time.

For the last 10 years, U.S. energy consumption has comewithin 2 percent of 99 quadrillion Btu. The 2007 energy con-sumption of 101.554 quadrillion Btu was the highest levelever.

The EIA divides the 7.301 quadrillion Btu of renewableenergy consumed into the following divisions: biomass, geo -thermal, hydroelectric, solar, and wind. Biomass energy con-tributed 3.884 quadrillion Btu to 2008 U.S. energy used for53 percent of the renewable energy. Biomass energy includesbiofuels, waste, and wood fuels.

Of the biomass category, biofuels supplied 1.413quadrillion Btu. Ethanol energy produced 0.809 quadrillionBtu, which was a 14 percent increase over 2007 ethanol ener-gy.

EIA also included a residual energy value of 0.563quadrillion Btu locked in distillers grains. These two valuesaccount for 97 percent of biofuel energy consumption. Theother 3 percent was supplied by biodiesel fuel and conver-sion losses.

Waste-derived energy, such as landfill gas, combustedtrash, and methane digesters, supplied only 0.431 quadrillionBtu in 2008. Meanwhile, wood and derived fuels supplied2.041 quadrillion Btu.

While this was the largest component of biomass fuels, it

was the onlyone that had anet decreasefrom 2007.The declinelikely wasrelated to theeconomicslowdownof the housing industry.

The other four sourcesof renewable energy supplied theremaining 47 percent. Geothermal energy supplied 0.358quadrillion Btu.

Conventional hydroelectric supplied 2.453 quadrillion Btu.This was down because droughts, floods, and water disputesreduced surface water flow used for hydroelectric power. In2006, hydroelectric supplied 2.869 quadrillion Btu. Thatdecrease in hydro electricity nearly equals the total of allwaste-derived energy in 2008.

In 2008, solar sources contributed 0.091 quadrillion Btu. However, remember this “tiny” number still represents 91

trillion Btu. Wind energy supplied 0.514 quadrillion Btu. This amount

also seems a bit underwhelming. Although this numberappears small, it represents a 50 percent increase in windcapacity from 2007.

It’s important to note there always is a lag time of severalyears between the time an energy project begins operationuntil it is registered in EIA’s dataset at full capacity. Projectsthat started construction in 2008 may not register a full yearof energy production until 2010.

Total U.S. energy consumption has leveled off. Renewableenergy use is increasing, and fossil fuel use is decreasing.Though it may seem slow, we are beginning to grow ourenergy.

Mark Jenner is chief analyst with Biomass Rules of Greenville. His e-mail address is [email protected].

MARKJENNER

Growing our own energy

Art by Sharon Newton

Where have all the locusts (not cicadas) gone?

Documents

FarmWeek September 21 2009