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Monday, December 7, 2009 Two sections Volume 37, No. 48

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

BOTH DISAPPOINTMENTand optimism were expressed whenthe Environmental Protect ionAgency last week postponed a deci-sion on use of E15 blends. ............4

THE HUMANE SOCIETY ofthe United States has added religionto its animal welfare activist debateand likely will intensify its efforts inthe future. .............................................6

HUNTERS IN ILLINOISshot fewer deer during the firstthree days of the firearm deer sea-son this year than during the sameperiod last year. ..............................5

FARM SHOW ATTENDEES

Allen Berry, left, a farmer from Nauvoo who tests farming equipment developed by Marion Calmer,Alpha, and helps Calmer by going to farm shows to demonstrate the equipment, discusses the CalmerTrash Reduction Kit with two visitors at the Greater Peoria Farm Show last week. Learning about theapparatus were Adams County farmers Bill Beckman, center, Plainville, and Bob Mitchell, Payson.The Calmer corn head attachments are designed to reduce trash intake at the head, speed harvest,and make the cornstalks decompose more quickly. Beckman said he had 100 acres of corn yet to har-vest; Mitchell had 80 acres of soybeans. They both reported good yields. (Photo by Ken Kashian)

Hopes for Senate higher

House extends the current estate tax provisionsBY MARTIN ROSSFarmWeek

U.S. House proposals ulti-mately could bring more pro-ducers under the thrall of the

federal “death tax,” a CentralIllinois congressman warns.

By a tight 225-200 vote, theHouse Thursday approved“permanent” extension of the

federal estate tax at a 45 per-cent rate on all assets inheritedabove $3.5 million per individ-ual or $7 million per couple.

The tax is set to phase out

at the end of the year, butbecause of a congressionalloophole, it could be reinstat-ed in 2011 with a $1 millionindividual exemption. Con-gressional action is needed toprevent that.

With outright repeal anunlikely prospect, IllinoisFarm Bureau is supportingproposals to boost the individ-ual estate tax exemption to atleast $5 million, adjusted annu-ally to track with the rate ofinflation.

The newly approved Housebill includes no inflationaryfactor, and, according to Peo-ria Republican Rep. AaronSchock, it gradually would hitmore and more families, farm-ers, and businesses, much ashas the federal alternative min-imum tax (AMT).

The AMT was created in1969 to target high-incomehouseholds that were eligiblefor so many tax benefits thatthey paid little or no incometax, but the tax was notindexed to inflation and agrowing number of middle-income taxpayers now are sub-ject to AMT treatment.

By extending current estatetax exemptions without allow-ing for inflation, “we are sim-ply ensuring it’s going to have

a negative impact on families,farmers, and small businessesin the near future,” Schockwarned.

Within 10 years, the House-approved measure “assures theaverage farm in the 18th (Con-gressional) District of Illinoiswill be burdened with thedeath tax,” he said.

“The value of assets con-tinues to go up in Illinois —

the land values have leveledoff a bit, but there’s potentialthey’ll go up in the future,maybe even above the rate ofinflation, as they have inrecent years,” IFB Director ofNational Legislation AdamNielsen advised.

“I think a lot of people seethis for what it is — you’retaxing someone when they die.Death should not be a taxableevent. Some people see this asan exclusively ‘rich person’s’issue, but we know that itisn’t.”

Nielsen was “optimistic”

FarmWeekNow.com

See House, page 2

Fertilizer study challenges current rate recommendationsBY KAY SHIPMANFarmWeek

Corn growers and theircrop advisers may be surprisedby the recommendations thatsurfaced from a fertilizer studyby Fred Below, University ofIllinois crop scientist.

His four-year, on-farmstudy of 78 sites in Illinoisand six other Midwesternstates puts a new spin onconventional — and universi-ty — nitrogen fertilizer appli-cation rate recommendations.

Below discussed implica-tions of his study resultsduring the U of I’s new AgMasters Conference last

week in Urbana.One of the biggest changes

may be the amount of fertiliz-er that farmers need to apply.Only two of the 78 sites need-ed the traditionally recom-mended 1.2 pounds of nitro-gen per anticipated bushel ofyield to achieve optimumyields, Below reported.

“The traditional 1.2 recom-mendation was devised in the1970s when the requirementwas 1.2 (pounds for optimumyields), but it stayed the sameover the years while the(hybrid) genetics improved,”Below explained.

“If (environmental) regula-

tions are coming, and you’reusing a (1.2-pound) systemwith this kind of error, it’sunacceptable,” he added.

Nitrogen recommendationswere accurate only 33 percentof the time based on a morerecent nitrogen recommenda-tion method known as the“corn N rate calculator,”which considers fertilizerprices along with other factors.Below noted the calculatoreither over- or underestimatedoptimum nitrogen levels.

The crop scientist predictedAmerican farmers and the U.S.corn industry will movetoward a “delta yield recom-

mendation” currently beingused in Canada.

That formula bases nitro-gen recommendations on thedifference between the yieldan area would produce withoutany fertilizer and the optimumyield.

“But you need to knowwhat the check-plot (unfertil-ized) yield and the optimumyields are,” Below acknowl-edged.

Even if farmers don’t havesuch knowledge about unfer-tilized yields, they need toadjust their ideas about the

See Fertilizer, page 3

For additional information onthe estate tax issue, go toFarmWeekNow.com.

ONE FOR THE RECORDS — A Southern Illi-nois bow hunter may take top honors — if not for bag-ging a record buck, then certainly for the best how-it-didn’t-get-away story.

The arrow of Joe Graber, an Edwardsville construc-tion worker, struck the ear of a 25-point buck that hehad observed over the past four years, according to theAssociated Press.

Graber’s shot startled the big deer. It flipped into theair, slid down a bank, fell off a 20-foot cliff, anddrowned. The animal was retrieved. Official measure-ments of the deer’s rack range between 17 and 18 feet.

SOY CANCER BENEFITS — Two new Universi-ty of Illinois studies report lunasin, a soy peptide oftendiscarded by soybean processors, may fight leukemiaand block inflammation associated with diabetes, heartdisease, or stroke.

“We confirmed lunasin’s bioavailability in the humanbody by doing a third study in which men consumed 50grams of soy protein — one soy milk shake and a serv-ing of soy chili daily — for five days,” added U of Ifood science professor Elvira de Mejia. “Significant lev-els of the peptide in the participants’ blood give usconfidence that lunasin-rich soy foods can be impor-tant in providing these health benefits,”

In the cancer study, de Mejia’s group identified asequence of amino acids that triggers the death ofleukemia cells. They also showed lunasin blocked orreduced activation of NF-kappa-B, a link in the chainof biochemical events that cause inflammation.

Though inflammation is linked with chronic healthproblems such as heart disease and rheumatoid arthri-tis, de Mejia said it also plays a role in cancer develop-ment.

EDUCATION COUNCIL NAMED — Gov. PatQuinn has appointed 25 individuals to an advisory pan-el that will make recommendations about strengtheningthe state’s education system.

The P-20 Council, which will deal with the educationof students in pre-school through graduate school, willplay a role in Illinois’ quest to secure federal funds.

The U.S. Department of Education plans to issue$4.35 billion in competitive grants for innovative educa-tion approaches. Illinois could receive about $400 mil-lion of those stimulus funds.

The 25 individuals appointed to the council include business leaders; teachers; parents; civic group lead-

ers; and university, community college, and school offi-cials. There are four legislators and six ex-officio mem-bers representing state agencies. Chicago City ClerkMiguel del Valle will chair the council.

FarmWeek Monday, December 7, 2009

(ISSN0197-6680)

Vol. 37 No. 48 December 7, 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.

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© 2009 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

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Quick TakesEMERGING ISSUES

Compliance concernsNRCS: Take steps to demonstrate, document your wet field problems

BY KAY SHIPMANFarmWeek

Farmers who are worried about how the lateharvest and fieldwork might impact their farmconservation plans may take steps to relievetheir anxiety, according to the NaturalResources Conservation Ser-vice (NRCS) assistant stateconservationist for programs.

NRCS knows farmers mustfollow their USDA complianceplan and get into their fields,but the late harvest and wetfield conditions have complicated the matter,said NRCS’s Ivan Dozier. Concerned farmershave contacted the state NRCS staff and FarmService Agency.

“We know they (farmers) don’t want to getout there when it’s wet. They have enough anxi-ety getting their crop out, and we want torelieve some of that anxiety,” Dozier said.

NRCS has no “blanket waiver” that wouldapply to the current situation, according toDozier. “It’s a case-by-case basis,” he added.

State Conservationist Bill Gradle offeredsome suggestions that farmers could take tohelp avoid potential problems.

“We know ruts and compaction are, or willbe, a real problem out there,” Gradle said.

Although some conservation complianceplans may not allow tillage, that may be the onlyoption some farmers have to re-establish cer-

tain fields for next spring, he noted.To stay in compliance on highly erodible

land, farmers may take the following steps:• Take photographs to document poor

field conditions and keep the photos as evi-dence in case of a random compliance

review.• Don’t till an entire field

to take care of a few badspots. Use tillage only inproblem areas and do justenough to till in ruts orbreak up compacted soils.

• If critical areas or problems or specialcircumstances call for unique or extrememeasures, photograph them and advise thelocal NRCS staff about your situation. Theycan offer advice and will be familiar with thecircumstances if there is a spot compliancereview later.

Dozier reminded farmers that NRCS takesa long-term view on conservation history.

NRCS will consider the long-term conser-vation average on a field if a compliance plancalls for 50 percent residue, but a farmer whohas followed his plan in the past can’t achievethat this year, Dozier explained.

“No one will be called out of compliancewithout a field check based on the long-termaverage,” Dozier said. “If they’ve followtheir plans, one year will not throw them outof compliance.”

Illinois estate tax set to expire at end of 2009The Illinois estate tax will

expire at the end of 2009 ifstate or federal lawmakersdon’t take any action, accord-ing to a spokesman for IllinoisAttorney General Lisa Madi-gan, who administers the stateestate tax in Illinois.

“As it now stands, both thefederal and the Illinois estatetaxes are set to expire at theend of the year,” said ScottMulford, a spokesman for theattorney general.

“If nothing is done in Con-gress or the General Assemblyto address this, both estate tax-es will reappear in January

2011, according to legislationsigned by President Bush,”Mulford said.

The previously passed fed-eral legislation would reinstatethe estate tax at 2001 levels.The U.S. House last weekapproved an extension of theestate tax at the current level,but the Senate has yet to act onthe matter.

Illinois would tax an estateif the value totals $1 million ormore. The estate tax ratewould be calculated using thefederal tax rate scale.

In 2001, the federal Eco-nomic Growth and Tax Relief

law took effect and graduallyeliminated a state estate taxcredit, replacing the federalcredit with a much-less-valu-able deduction.

Then in 2003, the IllinoisGeneral Assembly “decou-pled” the Illinois estate taxfrom the federal estate taxcredit and put in place a gradu-ated tax scale on the stateestate tax.

However, the state “decou-pling” action ends Dec. 31,2009, meaning the state againwill follow the federal estatetax system after that date. —Kay Shipman

Continued from page 1the Senate would support a $5million exemption indexed toinflation. Senate MajorityWhip Dick Durbin, a Spring-field Democrat, has told IFBhe favors a higher exemptionlevel and indexing.

The alternative to estate taxextension or reform is elimina-tion of estate tax revenues in2010 — a prospect that chillsmany congressional Democ-rats.

“Whether it’s a one-year fixor permanent estate taxreform, they’re going to haveto do something,” Nielsensaid. “Now the clock is tick-ing.”

House

ENVIRONMENT


Continued from page 1nitrogen needs of modernhybrids, according to Below.

His study of spring-appliedfertilizer showed the averagenitrogen rate requirement formodern hybrids is 0.85 of apound of nitrogen per bushelof yield.

If the same nitrogen rate isapplied in the fall, the averageyield would be expected to

decrease 10 bushels per acre,Below added.

“If you apply nitrogen inthe fall when there is a chanceof greater loss (over the win-ter), you’re taking a risk,”Below said. “Urea as a fall(nitrogen) source is evil, evil,evil because it will be lost.”

Below also discovered a 25-bushel-per-acre yield penalty incontinuous corn compared to

corn produced in a corn-soy-bean rotation. That penaltystayed constant among the 22hybrids studied by Below.

“The yield penalty for con-tinuous corn gets worse overtime. It’s due to the (corn)residue,” he said.

Over time, farmers haven’tattributed yield losses to grow-ing continuous corn becauseimproved genetics have boost-

ed yields “and sometimes theyget lucky with the weather,”Below said.

Farmers and their advisersalso need to reconsider apply-ing higher nitrogen rates onmore productive field areasand lower rates on less produc-tive spots, according to Below.

His study showed greateryield response to increasednitrogen rates on less produc-

tive areas than resulted fromapplying more nitrogen on themore productive areas.

Yields on productive areasremained fairly constant evenwith more nitrogen.

“It’s the low-end yields thatvary more than the top yields,”Below said. “The lowest (pro-ductive) areas of the field havethe greatest (yield) variabilityand response to nitrogen.”

Fertilizer

USDA analysis missing forest for the trees?BY MARTIN ROSSFarmWeek

New USDA analysis ofcongressional cap-and-tradeproposals ignores a potentiallycrucial side-effect for produc-ers and consumers — reduc-ing food supplies and hikingcosts, according to an IllinoisFarm Bureau spokesman.

USDA Chief EconomistJoe Glauber acknowledgedHouse-proposed climate legis-lation would increase producercosts, but argued the impactwould be gradual over severaldecades.

During a House Ag sub-committee hearing last week,Glauber presented USDA’s lat-est analysis, which concludesenergy prices would rise mod-estly for all of agriculturefrom 2012 to 2018.

The new USDA study pro-jects average annual changes infuel costs to rise between anadditional 2.6 percent to 5.3percent from 2012 to 2018under proposed new green-house emissions caps on utili-ties, refiners, and manufactur-ers.

Fertilizer costs wouldincrease by an added 0.3 of apercent to 1.7 percent eachyear, according to the USDAanalysis.

Meanwhile, Ag Secretary

Tom Vilsack claimed benefitsfrom climate legislation — i.e.producer ability to generateemissions credits for sale toregulated sectors — wouldoutweigh cost increases.

While some farmers andregions would not see as manygains, those producers wouldreceive some governmentassistance, he said.

The House-passed climatechange bill would have negli-gible impact on food prices,pushing them up 1 percent to2 percent by 2050, accordingto Vilsack.

USDA’s analysis focusedonly on on-farm production,and not on energy costs alongthe entire food supply chain.

Further, IFB National

Legislative Director AdamNielsen noted continued indi-cations that forest develop-ment would be the over-whelming winner in a carboncredit market, potentially dis-placing farmland as emissionsoffset opportunities increase.

That, in turn, could reducefood supplies and hike con-sumer costs. International

food prices could rise as wellas developing countriesemphasize reforestationunder House proposals tosubsidize global carbon cap-ture.

“Most of the benefit tofarmers farther down theroad is in planting trees,”Nielsen said. “Is that the kindof agriculture we want?”

University of Illinois agricultureproduction experts offered their takeson the 2009 growing season andthoughts for next year during the firstAg Masters Conference last week inUrbana.

The experts will discuss theirresearch and projections in more depthat upcoming winter meetings, includingthe Corn and Soy Classics in January.

CORN CONCERNS: “We alwayswarn people after an unusual year notto overreact,” said Emerson Nafziger,U of I Extension agronomist. Hewarned farmers, especially those inNorthern Illinois, not to jump to con-clusions about 112-day hybrids basedon this year’s problems.

At winter meetings, U of Iresearchers will report on test weightcomparisons of high-moisture samplesfrom different hybrids. Nafziger cau-tioned farmers not to make bad soil

conditions worse: “Almost no soil inthe state is fit for tilling and that will betrue for the next six months.”

SOYBEAN ISSUES: Vince Davis,U of I Extension agronomist, remind-ed growers that yields might have takena bigger hit if the wet, cool summerhad been hot and dry. With only halfthe state’s soybean crop planted by June6, “data tells us that we lost yieldpotential,” Davis said. Molds took a tollon yields, but the outcome might havebeen worse with different weather thissummer, he noted.

WEED PROBLEMS: Weed prob-lems started early in 2009 and foreshad-ow potential problems for next year,said Aaron Hager, U of I Extensionweed specialist. Herbicide-resistantmarestail is becoming more wide-spread, especially in Southern Illinois.

“I don’t feel the glyphosate-resis-tance problem is going to lessen and

will continue to be confronted in theforeseeable future,” Hager said. Heexpressed concerns about possibleproblems in 2010 with volunteer corn,especially that from glyphosate-resis-tant hybrids.

INSECT PESTS: Historically lownumbers of corn borer were reportedin 2009, said Mike Gray, U of I inte-grated pest management specialist. In23 counties, no evidence of corn bor-ers was found. Researchers also foundlow levels of western corn rootwormpopulations, he noted.

Growers may not have to worryabout soybean aphid problems nextyear despite large infestations this lastfall. Many aphids died from fungal dis-eases and didn’t lay eggs in buckthorn,their overwinter host plants, Gray said.

CROP DISEASES: Molds were amajor problem, even striking areas thattypically don’t encounter such diseases,

said Carl Bradley, U of I plant patholo-gist. Yield losses varied, but Bradleyreported hearing of 10 percent soybeanyield losses from white mold in North-ern Illinois.

However, soybean growers escaped“a close call” with soybean rust.

The rust was found in October, andsome late-planted beans in SouthernIllinois were still green, but no rust-related yield losses were reported. “Wewere two to three weeks away from suf-fering (rust-related) yield losses in thestate,” Bradley said.

SOIL WOES: Farmers will have tosuffer soil compaction next year,according to Fabian Fernandez, U of Isoil fertility specialist.

“Deep tillage is one way to deal withit, but soils will be wet for the next sixmonths. We have to look to next fall todeal with tillage,” Fernandez said. —Kay Shipman

U of I experts explore 2009 crop challenges, 2010 outlook

BY KAY SHIPMANFarmWeek

Farmers and others in the agindustry need to understandnitrogen’s role in greenhousegas emissions so the climatedebate keeps agriculture’s con-tributions in the proper per-spective, a national ag environ-mental expert told FarmWeek.

“We have to make the agcommunity aware of what thefacts are to put nitrous oxide (agreenhouse gas from nitrogen)in perspective. We (ag) take allnitrogen losses seriously, but weshouldn’t do more than our fairshare,” said Cliff Snyder, nitro-gen program director with theInternational Plant NutritionInstitute, Conway, Ark.

Last week Snyder discussednitrogen-related problems inthe environment at the Univer-sity of Illinois Ag Masters Con-

ference in Urbana.Emissions related to nitro-

gen fertilizer “are not even onfarmers’ radar screen, but thepublic is fixated on greenhousegases,” Snyder said.

On one hand, agricultureaccounts for less than 8 percentof all U.S. greenhouse gas emis-sions, Snyder noted.

On the other, agricultureemits about two-thirds to three-fourths of the United States’nitrous oxide, a greenhouse gasthat is more potent in globalwarming than carbon dioxide,he added.

He said 67 percent of agri-cultural nitrous oxide comesfrom fields and the amountreleased depends on how fertil-izer is managed.

Greenhouse gases aren’t theonly environmental issue relatedto nitrogen fertilizer.

Farmers are more familiarwith water quality problemsresulting from nitrogen leach-ing, tile drainage, and runoff.Farmers need to give morethought to those types of nitro-gen losses, according to Snyder,because “it represents an eco-nomic loss.”

Snyder encouraged farmersto explore new nitrogen prod-ucts and fertilizer technology,adding that no single panaceaexists. One example of a newproduct is polymer-coated urea,which is a slow-release fertilizer.

The wet growing seasons of2008 and 2009 should providefarmers with motivation. “If wehave weather like we’ve had thelast two years, we need to thinkof better ways to protect thenitrogen we apply,” Snyder said.

Improved timing of fertilizerapplications is another way to

reduce fertilizer losses. Forexample, a farmer may consid-er hiring a custom applicator tobetter manage the timing of hisfertilizer applications, Snyderoffered.

Snyder focused on the fourRs of nutrient stewardship. Heexplained those stand forselecting the right source, theright rate, the right applicationtime, and the right place.

Crop advisers andresearchers can help reducenitrogen losses by improvingcrop nitrogen efficiency,according to Snyder.

Corn and other cereal cropsrecover about 45 percent ofthe applied nitrogen fertilizer.Snyder estimated improvedmanagement and new technol-ogy could raise the efficiencylevel to the 60- to 70-percentrange.

Nitrogen role in emissions should be on ag’s radar screen

BIOENERGY


EPA delay disappointing, but…

Summer approval for E15 blends anticipatedBY MARTIN ROSSFarmWeek

While growers were disap-pointed by the federal govern-ment’s postponement of adecision last week on use of15 percent ethanol (E15), acutting-edge cellulosic ethanolproducer sees “a strong signalwe’re prepared to move toE15” by next summer.

The U.S. EnvironmentalProtection Agency (EPA)announced it was postponing adecision to allow blending upto 15 percent ethanol in gaso-line supplies nationwide.

In March, the ethanol coali-tion Growth Energy asked EPAto sign off on blends above thecurrent market-inhibiting 10percent ethanol “blend wall.”

EPA’s announcement was“not surprising,” according toIllinois Corn Growers Associa-tion President Rob Elliott, whopredicted “further researchwould be needed to fully supporta move to a 15 percent blend.”

He nonetheless was disap-pointed EPA did approveinterim use of 12 to 13 per-cent blends “based on the sci-ence currently available.”

literally every state,” Broinsees widespread opportunitiesto incorporate biomass feed-stocks into and improve thecarbon footprint of grain-based plants relative to foreignsugar-based ethanol.

At the same time, Poet hasreduced cellulosic production

costs from $4.13 a gallon to $2.35per gallon over the past year.

Clark believes E15 approvalwill open “a substantial win-dow for investment opportu-nities in the industry.” There’sa lot of money on the side-lines waiting for E15 to pass,”said Ruh, an Elburn producer.

“We’re disappointed, butwe’re also optimistic EPA isdoing its due diligence,” SteveRuh, former National CornGrowers Association EthanolCommittee chair, toldFarmWeek.

Growth Energy co-chair-man and former U.S. Gen.Wesley Clark said he was

encouraged by positive E15emissions and engine durabili-ty results in U.S. Departmentof Energy (DOE) studies andsuggested EPA couldannounce approval for higherblends by June if remainingtests yield similar findings.

Growth Energy CEO TomBuis argued his organization’swaiver request has expeditedfederal testing, helping ensurea decision “in a few months,not in a few years.”

Moving to E15 could create7 billion gallons of new

ethanol demand and “tremen-dous new demand for ag prod-ucts,” said Jeff Broin, whoseIowa-based Poet is on the cut-ting edge of cellulosic ethanolproduction using corn cobs.

But “without question, weneed to move the blend wall tohave the kind of growth thisindustry needs in the future,”he said.

“The potential for bothgrain and cellulosic ethanol togrow in the future is enor-mous,” Broin told FarmWeek.“The potential to offset largeamounts of imported oil is verylarge and our ability to competeat today’s price of gasoline withboth cellulosic and grainethanol is very good: We’re alower-priced product. But weneed to move the blend wall.”

Producers are counting onE15 approval to help bring theethanol industry out of anearnings/investment slump. Aresulting slowdown in newproduction has raised ques-tions about whether the indus-try can meet a congressionallymandated 36-billion-gallonrenewable fuels target by 2022.

Noting “there is cellulose in

EPA on the recordU.S. Environmental Protection Agency Assistant

Administrator Gina McCarthy, in a Nov. 24 letter to GrowthEnergy, said:

“. . . As we have seen in the range of comments fromstakeholders, this is a critical issue and also one wherethere are widely divergent views. A common theme wehave heard, however, is that the federal government andother stakeholders are looking to have a successful, long-term introduction of more renewable fuels into the trans-portation sector.

“As we are evaluating your E15 waiver petition, wewant to make sure we have all necessary science to makethe right decision. Although all of the studies have notbeen completed, our engineering assessment to date indi-cates that the robust fuel, engine, and emissions controlsystems on newer vehicles (likely 2001 and newer modelyears) will likely be able to accommodate higher ethanolblends, such as E15.

‘‘However, we continue to evaluate the question of com-ponent durability when E15 is used over many thousandsof miles and there is an ongoing study being conducted byDOE (the U.S. Department of Energy) that will provide crit-ical data on this issue. . . .’’

FarmWeekNow.comFor more reaction and inter-views about the E15 decision,go to FarmWeekNow.com.

Biodiesel RFS delay leaving industry in limbo?A delay in U.S. Environ-

mental Protection Agency(EPA) renewable fuels ruleshas “kind of left the industryin limbo,” according to DarrylBrinkmann, a Carlyle soybeanproducer on the Illinois FarmBureau board.

In a late November letter,the National Biodiesel Board(NBB) pushed EPA Adminis-trator Lisa Jackson to imple-ment mandatory 2009-2010“biomass-based diesel” fuel

statutory deadline for RFSimplementation.”

“So far, all we’ve seen arewords, and not any tangiblemovement in that direction,”NBB Washington spokesmanMichael Frohlich toldFarmWeek.

The biodiesel industry hasmade “vital business decisions”based on the RFS targets, andthe nation’s ability to meet near-term renewable goals “will beundermined if the EPA does

not take immediate steps toimplement the biomass-baseddiesel program,” Feraci warned.

Brinkmann, who recentlywas re-elected to the NBB gov-erning board, sees reason for “alittle more optimism in theindustry,” which recently expe-rienced a slump in investmentand growth. But Feraci warnsuncertainty about RFS-relateddemand could “prolong thesevere economic hardship fac-ing the domestic biodieselindustry.”

“We’re fortunate enough tohave a carve-out under the RFSfor biodiesel, but, unfortunate-ly, EPA hasn’t gotten the rulesand regulations out,”Brinkmann said. “I supposethey’re busy in the (administra-tion’s) transition and all that,but a lot of people are countingon this happening.”

He stressed the need tosolidify domestic demand par-ticularly given loss of potentialEuropean markets because ofEuropean Union duties on U.S.biodiesel. The EuropeanBiodiesel Board instigated tem-porary “anti-dumping” and“anti-subsidy” tariffs againstU.S.-produced biodiesel, and“that’s hurt a lot of our mem-bers,” Brinkmann said.

The European market “wasto be a temporary market untilthe RFS was enacted,” Frohlichreported. — Martin Ross

use requirements under thefederal renewable fuels stan-dard (RFS) by Jan. 1.

The RFS, as revised in2007, requires use of 500 mil-lion gallons of biomass-baseddiesel in 2009, 650 million gal-lons in 2010, 800 million gal-lons in 2011, and 1 billion gal-lons in 2012.

Biodiesel from soy or othersources is the only domesticcommercially produced fuelthat currently meets federal

criteria for biomass-baseddiesel.

According to the NBB,EPA can implement the bio-mass-based diesel programby issuing an appropriaterenewable “volume obliga-tion” specifically forbiodiesel.

NBB Vice President ofFederal Affairs ManningFeraci noted the agency israpidly approaching the endof 2009, “a year beyond the

Biodiesel producers awaiting long-term fuel demand targets(see accompanying story) are simultaneously pushing long-rangerenewal — and redirection — of tax credits seen as crucial tohitting those targets.

National Biodiesel Board (NBB) member Darryl Brinkmannurges congressional approval of a proposed five-year extensionof the $1-per-gallon federal biodiesel blenders tax credit spon-sored by U.S. Rep. John Shimkus, a Collinsville Republican.Shimkus also would shift the credit, now extended to fuel sup-pliers, to biofuels producers themselves.

The incentive, set to expire Dec. 31, has been credited withspurring rapid industry growth. A five-year extension wouldenable long-term industry planning and investment, while themove to a producer credit would “work more efficiently” inboosting capacity, Brinkmann said.

“It’s also going to eliminate potential abuses of the tax creditand improve tax compliance,” NBB Washington spokesmanMichael Frohlich told FarmWeek. “It really gets to the heart ofmaking sure the credit is being used for production of the fuelinside the U.S., to stimulate the U.S. economy, to grow U.S. jobs.”

For example, while fostering new production, the currentblenders credit also has attracted petroleum interests seeking tocash in on “miniscule blending” of oils that contributes little to

the overall biodiesel supply.Congress earlier addressed “splash-and-dash” practices under

which foreign sugar- or palm oil-based biodiesel was imported,blended with a small amount of diesel fuel to capture the credit, thenshipped to Europe or other markets for sale below market rates.

The credit initially granted $1 per gallon to suppliers whoblended “virgin” soy biodiesel and a 50-cent break for thosewho used biodiesel produced from waste grease or othersources. Amid growing diversification of crop-based, animal,and recycled feedstocks, the $1 credit was extended across theboard to all feedstocks.

The biodiesel tax credit was enacted in 2004 when total U.S.production was estimated at 25 million gallons. By 2008, pro-duction had reached 690 million gallons — “It’s clear the taxcredit’s working,” Frohlich maintained.

But in a currently “difficult economic environment,” biofuelsstartups and investors already struggling to obtain capital “aren’tgoing to move on year-to-year extensions,” he warned.

Frohlich said continued tax benefits are necessary for devel-opment of new alternative feedstocks such as algae, cottonseedoil, or pennycress, which are seen as integral both to bringingdown biodiesel prices and meeting federally mandated demand.— Martin Ross

Measure seeks renewal, redirection of credit

GOVERNMENT


Initiative seeks new wayto draw legislative mapSignatures neededto put on ballotBY KAY SHIPMANFarmWeek

A citizens’ initiative isproposing to amend the Illi-nois Constitution to allow achange to be made in themethod used to draw state leg-islative districts, supportersannounced last week inSpringfield.

Known as the Illinois FairMap Amendment, the propos-al would create a nine-memberbipartisan commission to draw

legislative district boundariesand “put people’s interestsahead of political self inter-est,” Brad McMillan, a mem-ber of the Illinois ReformCommission, said at a Fridaynews conference.

Initiative supporters,including the League ofWomen Voters and the BetterGovernment Association, willattempt to gain 500,000 signa-tures of Illinois registered vot-ers by May 1.

This would allow the pro-

posal to go before voters onthe November 2010 ballot,said Jan Czarnik, the league’sexecutive director.

The proposal would dealwith district boundaries forGeneral Assembly membersonly.

Adding congressional dis-tricts to the reform movemight draw a legal challengedue to language in the stateConstitution, McMillanexplained.

During the map-drawingprocess, commission meetingswould be open to the publicand the news media, and thepublic could submit legislativemap proposals.

“Everything will be in thelight instead of darkness,”McMillan added.

“What great timing for thisissue to come up. IllinoisFarm Bureau delegates willconsider a policy resolutionon legislative redistricting thisweek (at the IFB annual meet-ing). IFB also has a workinggroup studying the redistrict-ing issue,” said Kevin Semlow,IFB director of state legisla-tion.

Information about the ini-tiative is available online at{www.ilfairmap.com} or bycontacting the League ofWomen Voters, 332 S. Michi-gan Ave., Suite 1150, Chicago,Ill., 60604. The telephonenumber is 312-939-5935.

“We fully realize this isDavid vs. Goliath ... we intendto add stones to our slingshotand be successful,” McMillansaid.

Gov. Pat Quinn, center, talks about the importance of nature tourism during a news conference on a farmowned by Pike County Farm Bureau President Terry Rush, far left. Flanking Quinn are Rush and his grand-son, Noah Petty, Illinois Department of Natural Resources Director Marc Miller, and state Sen. Deanna De-muzio (D-Carlinville). Quinn and Miller discussed wildlife and recreation issues during a recent farm visit.(Photo courtesy Pike County Farm Bureau)

Quinn touts benefits of state’s nature tourism Deer hunting and other forms of outdoor

recreation are big business in Pike County. Thateconomic bright spot didn’t go unnoticed byGov. Pat Quinn who recently visited the Pitts-field farm of Pike County Farm President TerryRush.

“The governor emphasized nature tourismand the opportunities we have in Illinois. It wasreally refreshing to hear,” said Rush, who alsoruns a deer and wild turkey outfitting operation.

Quinn and Illinois Department of NaturalResources (IDNR) Director Marc Miller high-lighted nature-based tourism during a newsconference. Quinn noted hunters provide anestimated $25 million boost to Pike County’seconomy.

From Nov. 20 to 22, tens of thousands ofhunters statewide participated in the first three

days of the deer firearm season. Hunting, fish-ing, and other types of outdoor recreation cre-ate jobs, Quinn noted.

Illinois has more than 1.1 million hunters andfishermen. Those two sports provide an annual$2.1 billion impact and support more than22,000 jobs statewide.

While in Pike County, Miller also discussedwildlife issues of interest to agriculture andfarmers with Rush and other county FarmBureau leaders.

Rush said he was encouraged to hear thegovernor’s and the director’s views on thefuture for IDNR.

The governor made similar comments toconservation enthusiasts at the recent Conser-vation Congress, said Rush, who participated inthe congress. — Kay Shipman

‘We fully realizethis is David vs.Goliath.’

— Brad McMillanIllinois Reform

Commission member

Fewer deer harvested in first firearm hunting season

Quinn signs school bus safety lawGov. Pat Quinn recently signed legislation to improve stu-

dent safety on school buses. The law took immediate effect.Now under the state Vehicle Code, all school bus drivers

must check their buses to ensure no passengers were left on thebus at the end of the route.

The new law also requires all school buses to be equippedwith emergency two-way radios.

Failure to conduct a post-trip inspection can result in thesuspension of the bus driver’s permit by the Illinois Secretaryof State.

The Illinois Department ofNatural Resources (IDNR)reported hunters in Illinoisshot about 66,126 deer duringthe first three days of thefirearm deer season Nov. 20-22. That compares to 71,894deer during the same periodlast year.

Standing corn was a signifi-cant factor affecting hunters’success rate, according to PaulShelton, IDNR forest wildlifeprogram manager.

“The wet weather this fallhas delayed corn harvest inmany locations, and that makesit tougher for hunters to find

deer,” Shelton said. The firearm season

resumed Dec. 3-6; preliminarytotals were not available.IDNR issued more than360,000 firearm deer huntingpermits for the 2009 season.

Pike County led the statewith 2,012 deer harvested dur-ing the first three days of theseason. It was followed byFulton County with 1,725;Adams, 1,614; Jefferson,1,606; and Randolph, 1,576.

During the 2008 seven-dayfirearm season, hunters shot106,018 deer.

Sixty percent of the deertaken during the first part ofthe firearm season were bucks,compared with 59 percentbucks taken during the sameperiod in 2008.

Illinois hunters have otherdeer seasons remaining. Themuzzleloader-only deer seasonis Friday through Sunday.

The expanded, split late-

winter antlerless-only firearmand the special chronic wastingdisease deer seasons — bothin select counties only — are

Dec. 31-Jan. 3 and Jan. 15-17.The 2009-2010 archery deer

season continues through Jan.17.

Standing corn and weather blamed for the decrease

The U.S. EnvironmentalProtection Agency (EPA) willrenew the charter of its inde-pendent agricultural advisorygroup, the Farm, Ranch, andRural Communities Committee.

“EPA is dedicated to anopen and constructive workingrelationship with the agriculturecommunity,” said LawrenceElworth, ag counselor to theadministrator.

The advisory committeeprovides an opportunity toimprove the understanding ofenvironmental and agriculturalissues and rural communities,he added.

A Federal Register noticewas published Nov. 6 seekingapplications for new committeemembers. EPA established the

ag advisory group in February2008 as a policy-oriented com-mittee to provide advice, infor-mation, and recommendationson a range of environmentalissues of primary importanceto agriculture and rural com-munities.

The committee meets twiceyearly and has about 25 mem-bers representing academia,industry (e.g., farm groups andallied industries), non-govern-mental organizations, andstate, local, and tribal govern-ments.

Once renewed, the commit-tee’s charter will be effectivefor two years.

More information is avail-able at {www.epa.gov/ocem/frrcc}.

EPA to renew ag advisory committee

LIVESTOCK


Livestock producers see some light at end of tunnelBY DANIEL GRANTFarmWeek

Beef and pork producerswho survived tough economicconditions to this point mayhave some reasons for opti-mism in coming months,according to industry leadersat the Illinois CommodityConference.

Higher futures prices sug-gest pork producers by nextsummer could see some oftheir first profits of the pasttwo-plus years.

Meanwhile, any type ofeconomic improvement in thecoming year could spark meatconsumption and additionalexports of U.S. beef and pork.

ber, according to USMEF.“The economy turning

around would be the biggestthing (to boost beef salesaround the world),” saidTrevor Toland, a McDo-nough County beef producerand president of the IllinoisBeef Association. “That canovercome a lot of otherproblems such as higher cornprices.”

Both livestock leadersexpressed concern about thepace of this year’s harvest andthe quality of the crop.

Asay said he is aware ofsome instances in which pigswould not eat moldy corn andother situations in which pigs

overate due to what couldhave been nutritional deficien-cies in damaged corn.

“We have some concernsthe corn crop is not comingout (efficiently) and it’s costly(due to additional dryingcosts),” Toland said. “Thatcould translate to higher feedcosts.”

Overall, Toland and Asaybelieve producers will contin-ue to exit the beef and porkindustries in 2010 but the pacemay slow down compared tothis year.

“Checkoff receipts weredown last (fiscal) year,” Tolandadded. “Hopefully, this fiscalyear we can stabilize that.”

“Producersare looking tofutures pricesnext summerand they’reseeing achance toreturn to aprofit,” saidGary Asay, aHenry County

producer who serves on theNational Pork ProducersCouncil board and is a pastpresident of the Illinois PorkProducers Association.

“Pork producers are eternaloptimists and that has given ussome light at the end of thetunnel,” he said.

The U.S. inSeptember alsoexported morepork than anyother monthsince last April,according tothe U.S. MeatExport Federa-tion (USMEF).

Elsewhere,U.S. beef exports remainedsluggish overall but demandimproved at some locations.U.S. beef exports to Japan thefirst three quarters of this yearincreased 22 percent in vol-ume compared to last yearwhile beef exports to Taiwanjumped 26 percent in Septem-

Gary Asay Trevor Toland

Higher milkprices dairyloss quencher?

Milk prices are expected to inch higher thismonth and by early next year producers actu-ally could start turning a profit again.

That’s the prediction from Mike Hutjens,University of Illinois Extension dairy special-ist, who recently projected Class III milkprices, including premiums, this month couldhover around $15 to $16 per hundredweightand then move to the $17- to $18-range afterthe first of the year.

“We’re looking at close to break-even (milkprices), which means we’re at least covering costs,” Hutjenstold FarmWeek at the Illinois Commodity Conference.

“Then we should be looking at $17 to $18 milk after theNew Year (holiday), which would be a refreshing chance forfarmers to catch up” with various debts and expenses.

Class III milk prices in October averaged just $12.82 perhundredweight and Illinois milk producers from last Februarythrough November lost $50 to $100 per cow each month,according to Hutjens.

But dairy losses were more severe in the West due in part tohigher costs. Hutjens, therefore, believes the Illinois dairyindustry is well-positioned for a return to profitability.

“The price of milk is coming up, so hopefully producers cancapitalize,” he said.

Hutjens believes Illinois milk producers are in better shapethan their counterparts in other states due to low labor costs,good feed resources, bonuses handed out by cooperatives, andlower debt loads due to the fact that most Illinois producersdidn’t expand in recent years.

The dairy herd in Illinois has remained steady at about102,000 animals, he reported.

Elsewhere, about a quarter-million dairy cows were culledfrom the national herd and milk production as a result isexpected to decline by 1 to 1.5 percent. The drop in milk pro-duction and higher demand are expected to push milk priceshigher in 2010.HUTJENS RECEIVES AWARD

Hutjens was honored at the conference with the 2009 Friendof Agriculture Award.

The award, the highest honor awarded at the annual confer-ence, is given to individuals who have significantly contributedto improving Illinois agriculture.

Hutjens has served as a dairy specialist at the U of I since1979 and is a well-known dairy nutritionist. He has writtencolumns for various publications and has spoken at confer-ences in 46 states and 15 countries. — Daniel Grant

Farmers and ag leaders no longer can rely sim-ply on scientific and economic evidence to suc-cessfully defend current livestock productionpractices.

The Humane Society of the United States(HSUS) in recent years added religion to the ani-mal welfare debate and likely will intensify theeffort with its Faith Outreach program, accordingto Wes Jamison, associate professor of communi-cations at Palm Beach Atlantic University.

Jamison talked about the animal activist group’sfocus on religion and what it could mean to agsupporters during the Illinois Commodity Confer-ence in Bloomington.

“This debate is not about science or econom-ics,” said Jamison, who recently completed a nine-month research project in which he analyzed whyHSUS is so effective in shaping consumer opin-ions about animal ag.

“They (HSUS leaders) realized something wasmissing to tie (animal welfare issues) together andthey found religion,” he said.

HSUS currently is spending about $1.2 millionper year on its Faith Outreach program in anattempt to convert and change people’s mindsabout animal ag, according to Jamison.

HSUS on its website states the Faith Outreachprogram “seeks to engage people and institutionsof faith with animal protection issues on the

premise that religious values call upon us all to actin a kind and merciful way towards all creatures.”

The HSUS statement seems to be well-intend-ed, but Jamison believes there is a hidden agenda.

“The real target audience is pet owners” who area key demographic when it comes to state and localelections, Jamison said. HSUS wants to remind petowners “they should feel guilty about treating oneanimal like family and another like cuisine.”

HSUS is attempting to frame animal welfare asa religious and moral issue with the understandingthat getting consumers to feel guilty can inspirethem to take actions that could have negative con-sequences on livestock production, he said.

Voters in California, for example, last yearapproved a referendum to ban the use of veal andsow gestation crates.

In the end, “Their strategy (at HSUS) is to leg-islate you out of production,” Jamison told thefarm audience.

Farmers, therefore, must engage in the debateand look for ways to help consumers differentiatecompanion animals from food animals. Farmersalso must empower consumers to feel good aboutfarm products, he said.

“Research shows consumers want to use your(meat-based) products,” he added. “HSUS has thedifficult job trying to change their behavior.” —Daniel Grant

Chris Hausman, left, IFB District 12 director from Champaign County, discusses animal care issues withWes Jamison, center, associate professor of communication at Palm Beach Atlantic University, and HaroldGuither, right, professor emeritus of ag economics at the University of Illinois, during the Illinois Commod-ity Conference in Bloomington. Jamison was a keynote speaker at the event. (Photo by Daniel Grant)

Jamison: HSUS takes animalcare debate to higher power

Mike Hutjens

RISK MANAGEMENT


Insurance, strategic marketing winning combo?BY MARTIN ROSSFarmWeek

Market analysts are bullishon crop insurance as a tool tohelp producers more aggres-sively — and comfortably —lock in profit.

Mark Gold, managing part-ner with Chicago-based TopThird Ag Marketing, notesmany growers emphasize eitherrisk management or strategicmarketing, believing “you don’tneed to do the marketing” ifinsurance guarantees are inplace or ignoring the marketingsecurity crop coverage can offer.

Gold argued revenue assur-ance (RA) or crop revenuecoverage (CRC) policies nor-mally provide effective profitprotection “when you can’tgrow the bushels.”

“We’ve always endorsedcoupling of sound risk manage-ment policies with being more

aggressive in your forwardgrain contracting — if the mar-ket gives you good opportuni-ties,” he said.

“Well, we’ve certainly seengood opportunities the lastcouple of years to go out andlock in profitable prices. If you

do that in conjunction with asolid risk management plan,that gives you some backstopsand some guarantees in caseyou do have some productionhiccups or problems.”

Without an insurance safetynet, growers may feel comfort-able forward-contracting only amaximum 10-25 percent ofproduction. Yoder said produc-ers able to lock in recent excep-tionally high prices on only 25of their grain have been “takinga risk on 75 percent, hoping themarket stays up or goes evenhigher after harvest.”

Armed with a 75-85 percentinsurance guarantee, a producercould feel justified in marketingcloser to 50 or even 75 percentof his grain ahead of harvest,he maintained.

At the same time, Gold saidhis firm feels “much more com-fortable about selling grain aheadof time knowing (clients) havethat insurance and that mar-ketable bushels will be there.”

In some cases, RA or CRCcoverage enable growers to sellgrain as much as a year prior toharvest, said Gold, whose firmdoes not sell insurance. “Some-times, the best marketingopportunities come well beforefarmers put the crop in theground,” he told FarmWeek ata recent ag bankers conference.

According to Illinois FarmBureau risk management spe-cialist Doug Yoder, use ofinsurance-based protectionswith crop marketing is “as war-ranted or more warranted inthis volatile market environ-

ment we’ve seen the last coupleof years than ever before.”

Rising input prices and grain

storage issues have heightenedrisks involved in post-harvestmarketing, he noted.

Despite recent price ralliesrelated to harvest anxiety, long-term trends confirm the generalbenefits of forward contracting“done the right way,” Yoder said.

‘Sometimes, the best marketing oppor-tunities come well before farmers putthe crop in the ground.’

— Mark GoldTop Third Ag Marketing

Illinois counties ‘deleted’ from GRIP/GRP policy listUSDA has reduced risk

options for 2010 for growersin two Illinois counties as partof a sweeping effort to ensurecredible coverage and claimsand streamline systemwidecrop insurance costs.

Last week, USDA’s RiskManagement Agency (RMA)announced 1,062 Group RiskProgram (GRP)/Group RiskIncome Protection (GRIP)county crop program “dele-tions” for corn, soybeans,grain sorghum, cotton, andpeanuts for the 2010 crop year.

Illinois’ Lake County willlose GRP and GRIP coveragefor corn and soybeans, whilePope County is losing coveragefor soybeans, and GRP-GRIPgrain sorghum coverage will beunavailable in Illinois next year.

Revenue-based GRIP andproduction-based GRP poli-

must account for a minimum25 percent of the current-yearcounty production estimate.

Revised NASS reporting cri-teria reportedly has improvedreliability of available countyestimates, but has resulted infewer publishable county esti-mates. In some cases, NASSno longer will produce countyestimates for a given crop.

To help ensure GRP andGRIP operate in a “transpar-ent” manner, RMA hasreviewed eligibility of all coun-

ty corn, grain sorghum, cotton,and peanut programs. Criteriainclude whether the mostrecent U.S. ag census shows atleast 50 farms in a county pro-ducing a covered crop.

Further, concentration ofcounty acreage must score lessthan 1,000 on the Herfindahl-Hirschman Index, a measureused to ensure no single pro-ducer or small group of pro-ducers can unduly affect coun-ty average yield and thus “cre-ate” claims. — Martin Ross

cies use county rather thanindividual yields as the basis forcrop/price loss protection.

Counties were targetedbased on low GRP/GRIP salesvolume and/or inadequateNational Agricultural StatisticsService (NASS) yield data need-ed to accurately determine cov-erage and claims. Illinois FarmBureau supports efforts toimprove risk assessment withinthe crop insurance system.

“Every time we lose riskmanagement options, that’s aconcern,” IFB risk manage-ment specialist Doug Yodersaid. “On the other side of thecoin, we’re glad RMA is contin-uing to analyze products and,where they’re not viable prod-ucts, streamlining programs.They’re making sure they havesolid statistical analysis.

“We don’t want to see them

offering a product in a countywhere they don’t have signifi-cant enough analysis to prop-erly administer policies. Wedon’t want bad claims or a lackof justifiable claims based on alack of analysis.”

Other insurance productsremain available for eligiblecrops in affected counties.

NASS county estimates forindividual crops must be sup-ported by at least 30 reports ofboth harvested acreage andyield, or reported production

PRODUCTION


Seed orders slow to developSeed orders for 2010 reportedly are about a month behind

because of the late harvest.But once farmers have time to start making their input deci-

sions for next season, seed availability shouldn’t be a majorissue, according to industry representatives who exhibited theirproducts last week at the Greater Peoria Farm Show.

The rate of seed orders so far “is much later than normal,”said Dan Schneider, district manager in East Central Illinoisfor LG Seeds.

“Confirmed orders are probably a month behind,” he con-tinued. “It will put a cramp in getting everything finalized.”

Illinois farmers as of the first of last week still had morethan a quarter of the corn crop (28 percent) left to harvestwhile 4 percent of the soybean crop was uncut, according tothe National Agricultural Statistics Service Illinois field office.

“This has been a very, very stressful year,” said Trent Grif-fith, sales director for Stone Seed Group in Pleasant Plains,who also farms in North Central Illinois. “Early orders aredefinitely off pace compared to past seasons. I do not antici-pate that to be the case in the next four to six weeks.”

The seed harvest, despite the challenges this growing sea-son, appears to be a good one, and Griffith believes seed qual-ity is excellent for corn and at least satisfactory for beans.

“There shouldn’t be any supply issues other than brandnew varieties” that were produced in limited quantities,Schneider said. “I think we’re going to be real busy the nextthree to four weeks.”

Schneider and Griffith look for seed buying activity toincrease this month as farmers finally wrap up harvest andother fall fieldwork.

Farmers also are expected to take advantage of early-orderdiscounts, some of which expire by the first of the year.

“Farmers should take advantage of opportunities to maxi-mize early-pay discounts, but at the same time, they should becomfortable with their decision,” said Griffith.

He noted that some planting decisions will be difficult dueto wild fluctuations in corn and soybean prices and the factthat many farmers didn’t complete fall tillage and/or fertilizerapplications.

“Farmers should not look at 2009 results (to make variety selec-tion decisions), Griffith added. “They need to look at a three-yearaverage because 2009 is in a league by itself.” — Daniel Grant

End is near: Most crops finally out of fieldsBY DANIEL GRANTFarmWeek

One of the latest harvestsin modern history finally isnearing completion across thestate.

Many farmers took advan-tage of a relatively dry weeklast week to make significantprogress with harvest and fallfieldwork.

“We’re winding down to anend here,” said Richard Saud-er, manager of TremontCooperative Grain Co, wholast week estimated 99 percentof soybeans and 96 percent ofcorn was harvested in his area.“The only beans left are a fewdouble-crops and some wetholes.”

Ron Moore, a WarrenCounty farmer who also is aFarmWeek Cropwatcher andchairman of the Illinois Soy-bean Association, completedhis harvest two days afterThanksgiving. He estimatedon Friday about 20 percent ofthe corn crop and less than 5percent of beans were left inhis area.

“We’re still getting lines at

the elevators and elevators stillare closing early,” said Moore,who noted moisture readingshave remained high in muchof the late-harvested corn. “Ifwe get decent weather in 10days, we should be done in ourarea.”

Moore estimated his overallyields for corn and beans weredown 10 to 15 percent com-pared to last year.

Meanwhile, the high mois-ture readings and early ear rotissues made this one of theleast efficient harvests in yearsfor the elevator industry,according to Sauder.

“Overall, it was not a pret-ty-looking crop,” Sauder said.“And it’s been taking more gasper point of (moisture)

removal than we’ve seen inrecent years. I’m sure dryersales will be heavy next year.”

Fortunately, ear rot issues,which were common early inthe season, “cleared up con-siderably” down the stretch asfarmers entered their later-planted fields, according toSauder.

However, test weightsremained light through har-vest.

“This was one of the mostunusual growing seasons I’veever experienced,” Moore said.“I’m sure there will be somecrops left to be harvested in2010.”

Overall, Illinois farmersharvested 61 percent of thesoybean crop and 53 percentof corn in November as con-ditions improved greatly com-pared to a soggy October.

The statewide average tem-perature last month (46.9degrees) was 5.1 degrees abovenormal while the average pre-cipitation (2.6 inches) was 0.7of an inch below normal,according to the Illinois StateWater Survey (ISWS).

Harvest conditions lastmonth varied greatly, though, asrainfall totals ranged from 1 to 3inches in Southern and North-ern Illinois to 3 to 4-plus inchesin Central Illinois (see map ).

The statewide precipitation

total from January throughNovember (46.2 inches) is thethird-wettest on record, ISWSreported. Last January throughNovember was the fourth-wettest on record at 46.1 inch-es of precipitation.

‘We ’re w ind ingdown to an endhere.’

— Richard SauderTremont Cooperative Grain

COMING EVENTS


USDA, Justice Department eyeing concentrationBY MARTIN ROSSFarmWeek

USDA and the U.S. Depart-ment of Justice (DOJ) plan toscrutinize current structure,control, influence, and compe-tition in American agriculturethrough a nationwide series of“workshops” early next year.

The American FarmBureau Federation (AFBF) ispreparing December com-ments aimed at helping guideinteragency review of concen-tration, antitrust, and regulato-ry issues facing crop, livestock,poultry, dairy, andseed/biotechnology sectors.

The public workshops —none of which currently isscheduled in Illinois — areexpected to address the federal

that’s an area that requireschanges.”

Smith suggested competi-tion issues could emerge inAFBF delegate debate this Jan-uary in Seattle.

Illinois Farm Bureau coun-sel Jerry Quick is especiallyinterested in agency discussionof product contracts — thetopic of a planned Southeastworkshop centering on poultryand an issue facing Illinois

grain producers. “That onereally touches and concernsthe Midwest,” Quick advised.

In the seed area, Smithreported AFBF is not con-cerned so much about croppatents that provide majorbiotech companies a short-term “government-endorsedmonopoly” as it is about howthe move to “generic” traitswill evolve once patents onGMO products expire.

Capper-Volstead Act, whichset the stage for producer co-ops in the 1920s.

In addition, federal officialsseek comments on applicationof antitrust laws to ag monop-sony (the effect of limited buy-ers in a market) and verticalintegration.

“USDA and DOJ have casta very wide net,” AFBF’s TaraSmith told FarmWeek. “Theybasically want comments oneverything under the sun —everything farmers have a con-cern about. Comments aregoing to vary from sector tosector, because the industryand the challenges facing theindustry vary sector to sector.

“We’re glad DOJ is taking anewfound interest in looking at

some of these things. Folks inIllinois and a number of otherplaces have had some concernsfor several years now. But thereare definitely some cautionshere — we don’t want to gotoo far.

“USDA is talking aboutthings like whether or not Cap-per-Volstead requires changes.We’re very supportive of Cap-per-Volstead and farmer coop-eratives — we don’t think

Profit potential focusof Illinois Dairy Days

Dairy producers who have dealt with wild swings in the priceof milk and inputs in recent years can get some information tohelp their bottom line next month as Illinois Dairy Days are heldaround the state.

The event is sponsored by the University of Illinois and theIllinois Department of Public Health. The theme of the 2010Illinois Dairy Days is “Profit Potential.”

A series of one-day programs will be held Jan. 7 at the Com-munity Center in El Paso; Jan. 8 at Yoder’s Country Kitchen inArthur; Jan. 12 at the Adams County Farm Bureau in Quincy;Jan. 12 at the Super 8 Motel in Jerseyville; Jan. 13 at the Com-munity Club Building in Okawville; Jan. 14 at the AmericanLegion Hall in Breese; Jan. 19 at the Community Center in Eliza-beth; Jan. 20 at Highland Community College in Freeport; andJan. 21 at the Stratford Inn in Harvard.

Each program, with the exception of the one in Jerseyville,will begin at 8:45 a.m. and conclude at 2:30 p.m. The meeting inJerseyville will begin at 7:30 p.m.

Topics that will be covered at each meeting include feedingchallenges with today’s low milk prices, optimizing forages in thelactating ration, analyzing your dairy farm financial picture,improving profits with milk quality, looking ahead in the Illinoisdairy industry, reducing feed shrinkage, farm regulations deci-sion making, and managing an efficient reproduction synchro-nization program.

For more information about registration or fees for DairyDays, contact your local Extension office or visit the website{http://www.livestocktrail.uiuc.edu/dairynet/}.


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GROWMARK


LASALLE — FarmBureau will sponsor

stroke detection screeningsfrom 9 a.m. to 4 p.m. Wednes-day, Dec. 16, at the FarmBureau office. Stroke, abdom-inal aortic aneurysm, peripher-al vascular disease, and osteo-porosis screenings are avail-able. Cost is $80 for membersand $120 for non-members.Call 877-732-8258 for anappointment or more informa-tion.

LEE — Lee CountyFarm Bureau Founda-

tion scholarships ranging from$250 to $750 are available forhigh school seniors pursuing amajor in an agricultural fieldof study. In addition, the Lar-ry J. Green Memorial Scholar-ship of $300 and the DeanHenkel Memorial Scholarshipof $750 are available. Applica-tions are available on the web-site {www.leecfb.org} or at theFarm Bureau office. Applica-tions are due Feb. 1. Call theFarm Bureau office at 815-857-3531 for more informa-tion.

PEORIA — A free cal-endar featuring local

photos and activities will begiven to each person visitingthe Farm Bureau office. Addi-tional calendars are $3.

• Farm Bureau will sponsora Stroke Detection Plus pro-gram Thursday, Dec. 10, at theFarm Bureau office. Fourscreenings are available for$80. Call 877-732-8258 for anappointment or more informa-tion.

“From the counties” items aresubmitted by county Farm Bureaumanagers. If you have an event oractivity open to all members, contactyour county manager.

FROM THE COUNTIES

GROWMARK unveils 2010 essay contest theme The theme for the 2010

GROWMARK essay contestis: “Exploring Careers inAgriculture.” The contest isopen to all high school FFAmembers in Illinois.

This will mark the 17thyear for the competition,sponsored by the GROW-MARK System and FS mem-ber cooperatives, in conjunc-tion with state FFA leaders.

The contest is intended tohelp young people developtheir writing skills and toteach them about currentissues impacting agricultureand the unique role of coop-eratives.

This year, students willdescribe an agriculturalcareer of interest and inter-

industry with many currentand future opportunities foremployment,” said JaneCastellano, GROWMARKcommunications coordinator.“Writing an essay gives stu-dents a chance to researchrewarding and challenging

careers in agriculture-relatedfields.”

The state winner will earna $500 scholarship and thewinner’s FFA chapter willreceive a $300 award. Fourstate runners-up each will win$125 scholarships.

view local FS personnel tolearn the role that careerplays in a cooperative busi-ness.

Essays should be 500words in length, typed, anddouble-spaced. The post-marked entry deadline for

FFA members is March 12.Additional program detailshave been sent to agricultureteachers and are online at{www.growmark.com} (Clickon About Us/Youth andYoung Farmers).

“Agriculture is a diverse

Farm economics summit meetings set around the stateFarmers can receive

directions to navigatethrough challenging eco-nomic times at a series offarm economics summitmeetings that will be heldnext week at five locationsaround the state.

The theme for the 2009 Illi-nois Farm Economics Summitis “The Profitability of Illinois

Agriculture: Profitability at aCrossroads.” The meetings aresponsored by the University ofIllinois Extension.

“This was a year of tremen-dous uncertainty by any stan-dard,” said Darrel Good, U ofI ag economist. “There is thepossibility (in 2010) of bettertimes due to the recovery inthe general economy and some

lessened pressure on inputcosts.

“However, this onlyemphasizes the need forsound economic informationand analysis.”

The Farm Economics Sum-mit will be held Dec. 14 at theI Hotel and Conference Cen-ter in Champaign; Dec. 15 atthe Interstate Center in

Bloomington; Dec. 16 at theBest Western Prairie Inn inGalesburg; Dec. 17 at theHickory Grove Banquet andConference Center inRochelle; and Dec. 18 at theHoliday Inn in Mt. Vernon.

Each session begins at 7:45a.m. and concludes at 1:30p.m. Registration may be com-pleted online at{www.farmdoc.illinois.edu/}.Additional information isavailable by calling Sue Espos-ito at 217-333-5506.

SPECIALTY GROWERS


Illinois specialty crops conference slated Jan. 6-8 The Illinois Specialty Crops,

Agritourism, and Organic Con-ference will be Jan. 6-8 at theCrowne Plaza Hotel in Spring-field.

Three pre-conference work-shops will be offered concurrent-ly during the daytime on Wednes-day, Jan. 6, which will include“Grow Your Market: Creating aMemorable Experience for Cus-tomers,” “Getting Started inLocal Food Production and Mar-keting,” and “Expanding Seasonsand Markets with High Tunnels.”

On Thursday and Friday, theconference will kick off with anopening session entitled “FromMarket Gardening to Commer-cial Readiness: Keys to EffectiveProduction and MarketingAcross a Range of Market Are-nas“ by Tim Woods, Universityof Kentucky.

The remainder of the confer-ence will include the traditionalconcurrent breakout sessions onfruits, vegetables, herbs, irriga-tion, agritourism/marketing, andbusiness management.

New to the conference thisyear will be two organic tracks.Thursday evening will feature abanquet followed by theannouncement of the annualcider contest winners and com-ments from Doc Patterson, fireservice chaplain for the LakeCounty Honor Guard.

Peach and apple productionwill take center stage of the fruitbreakout sessions with talks ondisease management, thinning,insecticides, and fertility manage-ment. James Schupp, Penn StateUniversity, will discuss “PlantGrowth Regulators for Applesand Peaches” and “Current and

following areas: integratedorganic vegetable production sys-tems, grain and livestock systems,fruit production, and research.

Pete Johnson, Pete’s Greens,Craftsbury, Vt., kicks off the twoorganic sessions with “Building aHealthy Food System,” followedby Steve Pincus and Beth Kaz-mar, Tipi Produce, Evanston,Wis., with a talk on “Farming andMarketing in a Homegrown Wis-consin Co-op.”

The 21st annual cider contestand the eighth annual hard cidercontest again will be held in con-junction with the conference.For more information, contactElizabeth Wahle, U of I Exten-sion, at 618-692-9434, e-mail herat [email protected], or visit thewebsite

{http://www.specialtygrowers.org/confagenda.htm}.

The trade show has spaces formore than 50 exhibitors, andspace is still available for thosewishing to exhibit their specialtycrop products or services.

To receive registration materi-als or to obtain exhibitor infor-mation, contact Diane Handley at309-557-2107 or via e-mail [email protected]. A detailedconference agenda can be viewedat {www.specialtygrowers.org}.

The Crowne Plaza Hotel isreserving a block of rooms for$83 per night plus tax. Call thehotel directly at 217-529-7777 tomake your reservations and askfor the Illinois Specialty Crops,Agritourism, and Organic Con-ference rate.

Potential Approaches to Thin-ning in Apples and Peaches.”“Fertility Management for FruitProduction” will be the focus ofa presentation by Eric Hansen,Michigan State University.

Topics in the vegetable ses-sions will run the gamut of dis-ease, insect, and weed manage-ment to production problems tomarketing. Carl Cantaloupi,North Carolina State University,will discuss “Producing and Mar-keting Asparagus.” Vegetablesfocused on include asparagus,tomatoes, peppers, squash,cucumbers, and sweet corn.

The agritourism/marketingtrack will feature sessions on agri-tourism liability insurance, cus-tomer service, public relationsand advertising strategies, and

increasing marketing impact withphotography. Marsh Laux, IowaState University Extension, willspeak on “Iowa AgritourismDevelopment.”

Herb concurrent sessions willinclude subjects such as field herbproduction, composting process-ing and landscape waste, transi-tioning to organic greenhousegrowing, seasonal herbs, and herbof the year. Jim Crosby, CrosbyMint Farm, St. Johns, Mich., willtalk about “History of Mint Pro-duction in the U.S. and theChanging Market” and “Medici-nal Uses of Mint and SustainableLiving.“

Organic production joins theconference this year with twoconcurrent tracks of educationalprogramming focusing on the

Auction CalendarTues., Dec. 8. 10 a.m. 80 Ac. EdgarCo. First Bank and Trust-Land Trust

#893-031, CHRISMAN, IL. MossAuction Team, LLC.

Tues., Dec. 8. 10 a.m. 152.70 Ac.Warren Co. Ruth M. Russell Estate,

MONMOUTH, IL. Van Adkisson AuctionService, LLC.

Tues., Dec. 8. 1 p.m. 160 Ac.Champaign Co. MAHOMET, IL. Jerry

Wallace, Auctioneer.Tues., Dec. 8. 10 a.m. 120 Ac. LaSalleCo. Helen M. Zehnder Trust, GRAND

RIDGE, IL. Bradleys’ and ImmkeAuction Service.

Thurs., Dec. 10. 10 a.m. 120.50 Ac.Clay Co. Theodore E. Bahl, WEN-

DELIN, IL. Terry Wilkey AuctionService.

Fri., Dec. 11. 10 a.m. McDonough Co.Land Auction. Heirs of Eileen Toney

Est., BLANDINSVILLE, IL. LowdermanAuction Co.

Sat., Dec. 12. 11 a.m. Farm machineryand miscellaneous. Ervin and Vi Kruse,

MT. OLIVE, IL. Ahrens & Niemeier.Sat., Dec. 12. 10 a.m. 150.5 Ac. KnoxCo. R.E. (Jack) Wherley Trust, ABING-

DON, IL. Van Adkisson Auction Service,LLC.

Sat., Dec. 12. 10 a.m. Farm Close OutAuction. Shissler Farm, KEITHSBURG,

IL. Lane R. Hyett, Auctioneer.Sat., Dec. 12. 10 a.m. Farm machinery.Dave and Loy Caudell, CALHOUN, IL.

Rothrock Auction LLC.Mon., Dec. 14. 10 a.m. Farm Close-Out

Auction. Bill and Pat Garrett, TAY-LORVILLE, IL. Cory Craig, Auctioneers.

Tues., Dec. 15. 10:30 a.m. Farmmachinery and miscellaneous. IL Delta

Farms Partnership, ONARGA, IL.Schrader Real Estate and Auction Co.,

Inc.Thurs., Dec. 17. 10 a.m. Estate

Auction. Wayne Morrow Estate, HICK-MAN, KY. James R. Cash, Auctioneer.

PROFITABILITY


Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $31.00-$40.00 $37.8440 lbs. $38.00-$41.00 $39.1350 lbs. n/a n/aReceipts This Week Last Week

24,126 16,868*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 1,331 Two week’s ago 950 Last year 914Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $95-$100; 110-130lbs., $93. Good and Choice 1-2: 60-90 lbs., $110. Slaughter Ewes: Utility andGood 1-3: $40-$42. Cull and Utility 1-2: $40.

Lamb prices

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

This week Prev. week ChangeCarcass $56.67 $52.77 3.90Live $41.94 $39.05 2.89

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn11-26-09 41.3 14.7 23.811-19-09 80.5 16.1 26.1Last year 40.0 20.6 37.5Season total 473.4 425.0 397.8Previous season total 355.9 613.3 403.9USDA projected total 1325 875 2100Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 82.05 85.00 -2.95Heifers 82.14 85.00 -2.86

USDA five-state area slaughter cattle price

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

This week Prev. week Change93.83 93.69 0.14

CME feeder cattle index — 600-800 Lbs.

Global economy improving but remains fragileBY JIM CHARLESWORTH

As 2009 draws to a close,many Americans are facingdifficult times because of theglobal economic downturn.

The globalrecession hastouched near-ly everyone tosome extent.The highlyintegratedworld finan-cial and prod-uct markets

have provided a conduit torapidly transmit recessionarypressures throughout the glob-al economy.

Global GDP (gross domes-tic product) growth for 2009 isexpected to decrease about 2.1percent. However, lookingahead to 2010, the globaleconomy is forecast to

rebound at a positive 3.2 per-cent, notably above the histor-ical yearly average.

Economic growth in mostdeveloping countries remainsrelatively strong, althoughhampered by reduced exportdemand. For example, China’sgrowth this year will slow to8.5 percent, supported by mas-sive stimulus spending, andwill build to more than 10 per-cent annual growth in 2010.

As the largest world econo-my, the United States officiallyentered a recession in Decem-ber 2007, but the economy hasdemonstrated signs of recoveryduring the second half of2009. The eye of the storm haspassed, but the economy con-tinues to climb a slippery slope.

Declining household wealthhas caused a sharp pull-back inconsumer and business spend-

ing. The pace of job losses hasbeen the largest since theGreat Depression, reachingmore than 7 million. Extreme-ly aggressive fiscal and mone-tary stimulus was necessary.

However, these programshave contributed to massivefederal deficits forecast at $1.4trillion this year, while raisingfears of inflation, higher inter-est rates, and burdensome taxpolicy for decades to come.

The U.S. economy expand-ed to positive territory at 3.5percent in the third quarterafter shrinking for four con-secutive quarters, marking anapparent end to the worstrecession since World War II.

But the recovery is expectedto be slow and painful nextyear as businesses shed jobsand credit remains tight.

Other economic indicatorscontinue to suggest that a

recovery, although slow andfragile, is in the offing.

Economic data are showingpositive direction, including his-torically low borrowing rates,tame inflation, an up tick inpersonal income and consump-tion, and productivity growth.

The global economy hasgained traction in the secondhalf of 2009, especially inemerging markets, and willcontinue to strengthen in 2010,although a few bumps in theroad will be felt along the way.

As we move into the holi-day season, remember to bethankful for all your blessingsand reach out to help thosewho are less fortunate.

Jim Charlesworth is GROW-MARK’s marketing research direc-tor. His e-mail address [email protected].

Jim Charlesworth

Farm retailers remain positive despite slumping economyBY DANIEL GRANTFarmWeek

Farm retailers were fairlyoptimistic last week at the28th annual Greater PeoriaFarm Show despite a poorturnout at the event and aslumping economy in general.

Attendance at the show,which is billed as Illinois’largest indoor farm show, was“down considerably” accord-ing to exhibitor Pete Bailey, aterritory sales manager forCase IH. Many farmers still

were harvesting or completingother fall fieldwork.

Meanwhile, recent reportsindicate rural America contin-ues to battle recessionary pres-sure.

The Association of Equip-ment Manufacturers reportedtractor sales for the first 10months of the year were down22.8 percent compared to thesame time last year. Mean-while, the Federal ReserveBank of Chicago recentlyreported farmland values for

the third quarter were 4 per-cent lower than a year ago.

“We’re moving out of ayear with high input costs andinto a year with lower inputcosts for grain farmers andthe aftermath of slimmermargins (in terms of availablecash reserves and/or creditworthiness),” said MikeDoherty, Illinois Farm Bureausenior economist.

“We can expect more farm-ers will be exposed to a higherlevel of financial risk in 2010than we have seen in pastyears.”

The level of risk for eachfarmer next year will dependon how much debt is carriedover, which is related to thetiming of their input purchas-es and crop yields, accordingto the economist.

However, farm equipmentsales have remained fairlystrong this year in Illinoisdespite the slumping nationaleconomy, according to indus-try representatives at the show.

“It’s been a down sales yearcompared to 2008, but weactually increased sales (thisyear) compared to years priorto 2008,” Bailey said.

Ryan Myers of Kelly Saud-er Rupiper Equipment (JohnDeere) in Pontiac, said manyfarmers were able to buyequipment this year due to thecarryover effect of strongcommodity prices in 2008.

“We haven’t seen a hugedownslide in equipment sales,”he said. “But next year mightnot be as good” due to a pro-jected drop in farm income for2009.

Equipment retailers expecta flurry of activity in comingmonths for items such as soilfinishers as the late harvestcould force a good deal of fall

tillage to be completed in thespring.

Two segments of the agequipment market that havedropped off this year for someretailers in Illinois are sales ofsmall horsepower (lawn andgarden) equipment and highhorsepower tractors.

Jamie Buss of Kelly SauderRupiper believes equipmentsales to “hobby farmers”

declined this year due to theeconomic recession.

Meanwhile, purchases oflarge tractors may have beenharder for some farmers tojustify this year compared to2008 due to lower commodityprices and higher input costs,according to Todd Weit-ekamp, precision farm spe-cialist for Birkey’s in GibsonCity.

Milk price tops $14The Class III price for milk adjusted to 3.5 percent butterfat

for the month of November was $14.08, a $1.26 increase fromthe previous month.

Prices have recovered nicely and have added more than $4since the sub-$10 prices seen this summer.

Prices continue to see strong support as the holiday seasonarrives. Thanksgiving, Hanukkah, and Christmas are events thatfocus on families and cooking.

This added demand for milk, cheese, and butter has lentstrong support for dairy markets in recent months.

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

�2009 crop: The short-term trend might have turneddown, but the longer-termtrend still is higher. Use ralliesto make late harvest sales,especially on commerciallystored corn. It may not pay tostore commercially given lim-ited upside potential and thecost of storage. If Marchfutures rally to $4.35, boostsales to 50 percent. Check theCash Strategist Hotline; wemight change the recommen-dation at any time. But we seelittle reason to sell weakness.For farm-stored corn, thelarge futures carry makeshedge-to-arrive contracts forwinter/spring delivery attrac-tive. Because of qualityissues, be careful storing cornbeyond March/April.

�2010 crop: We are con-sidering initiating sales ifDecember 2010 futures moveabove $4.50.

�Fundamentals: Flood-ing in Rio Grande do Sul inBrazil could reduce corn acresslightly. The lack of action onthe ethanol blend rate hasdampened optimism slightly. Soybean Strategy

�2009 crop: An absenceof outside money coming intothe market at the beginning ofthe month triggered a wave ofprofit taking, dragging priceslower. Continue to leave anorder to boost sales to 50 per-cent if January futures hit$10.80. We could change therecommendation at any time,but are reluctant to sell weak-ness just yet. Check the CashStrategist Hotline frequently forpossible changes.

�2010 crop: We are con-sidering initiating sales ifNovember 2010 futuresapproach $11. Check the CashStrategist Hotline occasionallyfor a specific recommendation.

�Fundamentals: Demandremains the key fundamentaldriver of the complex.Demand for soybeans toprocess is equally as strong asdemand for export. That willpersist into the first part of2010. Beyond that, the keylies with South Americanweather, specifically Brazilianweather. With end users notwell covered beyond March,

any serious scare could spark aquick rally. Without that,prices will tend to be soft as2010 unfolds.Wheat Strategy

�2009 crop: The recentwheat price strength has beentied to an influx of speculativebuying. Once speculators stepaway from the market, we antic-ipate softer prices as wheat haslittle fundamental backing.Chicago December futuresreached our $5.75 target to pushsales up to 80 percent. UseChicago March futures ralliesabove $5.75 for catch up sales.

�2010 crop: If ChicagoJuly futures rally to $6.15,make an initial 25 percent sale.

�Fundamentals: Weeklyexport sales continue to beroutine, with this last week’ssales only totaling 390,700metric tons (14.3 millionbushels). Egypt again snubbedthe U.S. on its recent purchase,buying wheat from Russia andGermany. It cited high U.S.prices as the reason for notbuying U.S wheat. The U.S.again has returned to its typicalposition as the “source of lastresort” in the world trade.

Export sales continue toaccumulate at an impressivepace in soybeans and soy prod-

Basis charts

ucts. In particular, the large mealsales and shipments are con-tributing to strong crush marginsand an aggressive crush pace.

Soybean shipments are asaggressive as the sales. Duringa recent five-week period, 10percent of the marketing year,we shipped 23 percent of thisyear’s expected exports.

Corn and wheat sales con-tinue to lag, but in recentweeks, corn sales have startedto improve somewhat. Wecan’t help but wonder ifexporters are not aggressivelypursuing corn sales knowingthat load-out capacity is beingtied up by soybeans and meal.

Wheat sales continue to beundercut by the aggressivesales out of Russia and theUkraine. Those will diminishduring the winter, opening thedoor for our sales and ship-ments to be larger in the latterpart of the marketing year.

Cents per bu.

Soy export sales impressive

PERSPECTIVES


A typical neighborhood includes what? A streetdabbled in light and shadow from the trees; houses asdifferent and as uniform as the inhabitants; neighborschattering and darting here and there like the squir-rels above; cars whizzing by; and the smell from thenearest restaurant moving on the wind to remind theinhabitants of their lurking hunger.

I, however, live in a place alien to this picture-per-fect movie set of a bustling, noisy, little street of uni-formity and obligations.

I reside where the lights and noisesof the world dissolve into rolling hills,peaceful woods, bubbling, gurglingcreeks, and vast stretches of corn andbeans that bring color and substanceto the countryside.

Time slows. Wood and field meldinto one another. The wind kisses andtickles the cheek. In spring, the sweetscent of rain hangs at the edge of allother smells; in summer, corndemands recognition as it purges theair of all rival smells; in fall, apples

and pumpkins leak their scents from oven vents; inwinter, the clear, crisp scent of cold bites the nose.

To walk barefoot is to step back in time. The grass cools, the dirt massages, and the moss

comforts as all squish and caress the toes. At night,the woods erupt with praises to heaven. The birdschirp and chatter, “Goodnight.”

Owls ask, “Whoooo?” Frogs and crickets providethe steady backbeat; and the coyote howls to themoon. The moon and stars shed their light unhin-dered by smoke or smog.

My farm contains all the above. It’s a small proper-ty compared to others, but it still contains life.

The woods to the north are quiet and keep tothemselves, protected by an outside layer of brush.

Once inside, though, they expand and makeroom. Green here is no longer a color but apresence in itself.

Deer paths and tractor roads snakethrough the ever-growing trees. Two pondsand creeks find themselves nestled in thislush oasis in the great corn and bean desert.

Every year brings changes, but the woodsremain the same. Trees fall, water steals a lit-tle earth, and paths become overgrown; butthe smell and essence of the wood remainsthe same.

To the south are the alfalfa fields currentlybeing overgrown by prairie grass. The alfalfaretaliates by twisting and tangling aroundone’s feet and ankles. Hay bales, excellent forjumping, outline the boundary of field andwoods.

Trees start growing again but are now dis-persed and trimmed to make room for myhouse and my grandmother’s a little waysaway.

Here the land dips and creates valleys.When the rains come, the valleys fill into ariver and the yard becomes swampland:squishy and soft.

The past hides in the taller grasses along with thedilapidated barn, green house, and corncrib, all entan-gled in ivy and standing only on the foundations ofmemories.

The wind blows through here with fondness andpower, bringing the smells of nature, sweet and mys-terious; the tastes of nearby kitchens, mouth-wateringand rich; and the sounds of the wildlife, melodic andsteady.

Around the entire property is a simple barbed wirefence: 40 years old, straight, unchallenged, and put upby my grandfather.

The country is a world of peaceful contradictions.It is always changing, but ever the same; always mov-ing, yet ever standing still; always dying, but ever liv-ing.

All things here are connected and woven together.All things blend and fade away like time itself. This iswhere I live.

Katelin Pattie is a junior at Jacksonville High School and alsotakes a dual-credit writing class at Lincoln Land CommunityCollege. She lives with her family on her grandfather’s farmnear Jacksonville.

Who hasn’t driven by a sub-urban shopping mall withempty stores or through a bigcity with abandoned warehous-es, boarded-up factories, andvacant office space?

Lately, a lot of foreclosedhomes and half-finished condo

developmentsalso have beendumped on themarket by theGreat Reces-sion.

The samecannot be saidfor farmland.It’s hard to findanyone todaywho thinks wehave too much

farmland, or too many farmsand farmers.

Surplus production in somecommodities occasionallyoccurs but nothing like thechronic surpluses of decadesago.

Farm real-estate valuesdeclined only 3.2 percent inthe latest year, according toUSDA’s annual report released

in August. It was the first year-ly decrease in farmland valuesin 20 years, and nothing likethe declines experienced byother real estate.

Nevertheless, farmland con-tinues to be converted tourban uses at a rate of lessthan 0.1 of a percent of U.S.farmland per year.

The total loss may not seemgreat, but local farmland lossescan be alarming and have ledover the years to public sup-port for farmland protectionlaws, agricultural easements,and other programs.

Farmland preservation —saving the valuable farmlandwe have — is a familiar con-cept, but farmland restorationor the notion of reversingurbanization is a new idea formost folks.

Yet, that’s exactly what isbeing talked about for the cityof Detroit, Mich.

A New York Times articlereferred to the idea as the“shrinking cities” movement,and several articles also haveappeared in magazines propos-

ing an urban farm concept.Ironically, the idea is remi-

niscent of one auto pioneerHenry Ford had in the 1920s.Ford proposed developingthe South in a way that farmsand manufacturing centerswould co-exist.

This time around, the ideainvolves cities in the RustBelt, especially Detroit.

One plan has Detroitshrinking back to its corewith smaller urban villagesand farms radiating from it.Detroit’s appeal is that it hasplenty of land, more thanManhattan, Boston, and SanFrancisco combined.

Detroit’s populationpeaked around 1950 at 1.85million people. Less than halfthat many people live theretoday. The median sellingprice for a home was just$7,100 last summer, less thanthe cost of an acre of goodfarmland in some places.

If the idea of plowing upabandoned homes and facto-ries for cropland seems wildlyfar-fetched, remember that

Detroit was once a smallFrench fort and missionaryoutpost.

No one then could haveimagined it becoming theMotor City.

If this blighted city hasbecome “a massive failure,”as the Times suggests, thenmaybe it is time to changedirection.

In the decades ahead, per-haps the Rust Belt will referto fields of rusty-colored,ripe grain sorghum instead of

cities with old steel plants. One thing is for certain,

America needs to keep itsproductive agricultural land.Whatever the next new econ-omy looks like, a high valueshould be placed on farm-land.

Stewart Truelsen is a regular con-tributor to the Focus on Agricul-ture column series and an authorabout the American Farm BureauFederation history. His e-mailaddress is [email protected].

KATELINPATTIE

STEWARTTRUELSEN

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Farmland restoration putting different spin on urbanization

Delights of country lifethrough young eyes

farmweek december 7, 2009

Documents

imum tax

thedeath tax

tax benefits thatthey

theaverage farm

thrall of thefederal

illinois farm bureauon

greater peoria farm

calmer corn head attachments