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

USDa’S highly anticipatedreports Friday will provide somedirection for the crop markets.Final production estimates for2012 will be revealed. ...................10

ro C k r e m ova l i n t h eThebes reach of the Upper Missis-sippi is “progressing beautifully,”according to the St. Louis DistrictCorps of Engineers. .......................4

State legiSlatorS didnot resolve the looming pensiondebt or other pending issues duringthe first few days of the lame ducklegislative session. ............................2

Monday, January 7, 2013 Two sections Volume 41, No. 1

Congress avoids fiscal cliff, major estate tax hitBY MARTIN ROSSFarmWeek

Many Illinois farmers,including Paul Taylor, beganthe new year prepared for theworst as Congress continued tohaggle over a “fiscal cliff ”solution.

A lame duck Congressnonetheless reached an 11th-hour agreement Jan. 1 that pro-vides a permanent $5 millionindividual/$10 million-per-couple estate tax exemptionand extends a variety of expir-ing tax provisions important tofarmers, ag businesses, and therenewable energy sector.

Illinois Farm Bureau Presi-dent Philip Nelson hailedefforts by Senate MajorityWhip Dick Durbin, a Spring-field Democrat, to help ensurean “overwhelming” 89-8 NewYear’s Day vote for the meas-ure. The House then voted257-167 to pass the packageprior to adjournment of the112th Congress.

“I told my wife when wewent to bed New Year’s Eve, ‘Ibet it won’t pass,’” Taylor, aDeKalb County producer andIllinois Corn Growers Associa-tion president, toldFarmWeek. “I’m enthusiasticthat Congress did something.”

Taylor’s enthusiasm

and couples earning below$450,000. The top capital gainsrate rises from 15 percent to 20percent.

In 2012 and 2013, the Sec-tion 179 expensing option —the maximum amount a smallbusiness can immediatelyexpense when purchasingequipment or other business

assets, instead of depreciatingthem over time — will be$500,000, reduced dollar-for-dollar when expendituresexceed $2 million.

The Section 179 thresholdwill fall to a maximum $20,000dollar-for-dollar reduction on

See Fiscal cliff, page 3

nonetheless was tempered by“the frustration that the workour corn farmer-membersinvested to pass a five-year farmbill was effectively tossed outthe window” with Congress’mere nine-month extension of2008 farm bill provisions.

American Farm BureauFederation policy specialist PatWolff told FarmWeek “we(agriculture) did wonderfully”under the fiscal cliff measure.The $5 million personal“death tax” exemption isindexed for inflation, and newlaw provides for a step-up inbasis.

And with the certainty pro-vided by permanent estate taxrelief farmers “don’t have to dotheir estate plan over every twoyears,” Wolff said. Had Con-gress not acted, the individualexemption would have droppedto $1 million dollars — atreacherously low trigger givenIllinois land values, and theestate tax rate would have risento 55 percent.

Lawmakers nonethelessapproved a 5 percent increasein the existing 35 percent estatetax rate. The new 40 percentrate was a reported concessionfor those who sought a mere$3.5 million exemption.

“Though many of our mem-

bers would like to see the estatetax eliminated, this action atleast lowers farm family expo-sure until the opportunity toeliminate this tax arises,” IFB’SNelson said.

The plan also leaves the cap-ital gains tax rate unchanged at15 percent for individuals earn-ing below $400,000 annually

OREOS AND TURNIPS

Belted Galloway cattle graze on turnips and rye cover crops near Congerville in Woodford County.David and Leanne Fogle and their family raise the distinctively marked Scottish breed (sometimes re-ferred to as Oreo cattle) as Wayside Valley Belted Galloways. Read about another farmer whose cattlegraze on cover crops over winter on page 5. (Photo by Ken Kashian)

Congress purportedly savedconsumers some milk moneybut failed in the waning hoursof 2012 to approve key agbudget savings and a new farmsafety net.

As part of a New Year’s fis-cal cliff deal, lawmakersapproved a nine-month exten-sion of expired 2008 farm billprovisions without providingextended program funding.Farm Bureau sought approvalof a five-year bill based on Sen-ate- and House Ag Committee-approved proposals that includ-ed $23 billion to $33 billion indeficit savings.

Now, the 113th Congressessentially must reboot farm bill

debate amid uncertainty aboutpotentially severe ag budget“sequestration” cuts.

Under a continuing budgetresolution, current ag spendingexpires March 27, though exist-ing 2012 corn and soybean pro-grams extend through Augustand the extension continuesexisting program authorizationsthrough Sept. 30.

The extension measureextends the Milk Income LossContract (MILC) program tocover dairy losses and authoriz-es livestock disaster provisions— albeit without funding. Illi-nois Farm Bureau PresidentPhilip Nelson argued “it will beimportant for Farm Bureau

members to work hard toencourage Congress to addressa five-year farm bill this summerand not wait until the 11th houragain.”

Lawmakers touted the needfor farm bill extension to avoidreversion to 1949 “permanent”ag law and outmoded dairy pro-grams that could significantlyboost consumer milk prices.

Illinois Corn Growers Asso-ciation President Paul Taylor ismore concerned about U.S.farmers falling behind as “tensof thousands, hundreds ofthousands of hectares of landcome into production in SouthAmerica, the Ukraine, all over.”

“We haven’t repealed the

rules of economics,” he toldFarmWeek. “We’ll be swim-ming in corn and wheat at somepoint. We’re really disappointedwe didn’t get a new farm bill.

“We’re still concerned aboutthe vulnerability of crop insur-ance as the base of what mostof our growers tell us is impor-tant for revenue management. Iknow everybody was concernedabout $7-a-gallon milk. I don’tknow that they were really con-cerned about the rest of it.”

Taylor, a DeKalb Countyproducer, said he was hopefulSenate Ag Chairman DebStabenow (D-Mich.) could lead

See Farm bill, page 3

Nine months for Congress to deliver new farm bill?

COCHRAN TOP SENATE AG GOP — Assertinghis seniority on the Senate Ag Committee, Sen. ThadCochran (R-Miss.) became the ranking member of thecommittee on Thursday, unseating Sen. Pat Roberts (R-Kan.), who helped forge the Senate’s 2012 farm billplan.

“I had hoped to stay, but agriculture is at a criticalpoint, and I just think you don’t want to roil thewaters,” Roberts said. “I’ll still be sitting right next toThad, and I intend to continue to make my voiceheard.”

Roberts has been a strong advocate for crop insur-ance protections in several farm bill debates. Cochran,who represents producers of several major southerncrops, takes the reins as the House haggles over the ideaof instituting both a new farm revenue program andcontinued price protections favored within his region.

ILLINOIS WIND FARM SOLD — CanadianAlgonquin Power & Utilities Corp. bought the ShadyOaks wind farm in Lee County from China’s GoldwindInternational for an estimated $148.9 million, the com-pany announced Wednesday.

Shady Oaks, a 71-turbine, 109.5 megawatt (MW)wind farm, is located in Lee County and began operat-ing in June. Shady Oaks has a 20-year power purchaseagreement with Commonwealth Edison.

Goldwind executives say the sale is an important stepto show its permanent magnet direct-drive (PMDD)wind turbines are seen as viable assets in the UnitedState and demonstrate the company’s ability to competein the wind energy market.

The wind farm is comprised of 68 Goldwind 1.5 MWturbines and three of its 2.5 MW units.

WIND ENERGY EXTENSION — Wind energysupporters breathed easier after a one-year federal taxcredit of 2.2 cents per kilowatt-hour was included in thepackage to avoid the “fiscal cliff.”

Congress approved an extension of the wind energyProduction Tax Credit (PTC) and Investment Tax Cred-its (ITC) for community and offshore projects, accord-ing to the American Wind Energy Association (AWEA).

The credit will apply to all wind projects that startconstruction before the end of the year, according toAWEA.

Without the extension, the PTC would have ended inDecember and put in jeopardy 75,000 jobs in the U.S.wind energy sector, according to the industry group.New construction had slowed as developers awaited acongressional decision.

FarmWeek Page 2 Monday, January 7, 2013

(ISSN0197-6680)

Vol. 41 No. 1 January 7, 2013

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Quick TakesSTATE

Lame duck session results in little resolution of issues

With the state’s economicproblems continuing, IllinoisFarm Bureau will support abudget that includes mainte-nance funding of core ag pro-grams and no programgrowth, the IFB board decid-ed at its December meeting.

“Within the current rev-enue-and-tax stream, main-taining funding for key Illi-nois Department of Agricul-ture (IDOA) programs isimportant,” said Kevin Sem-low, IFB director of state leg-islation.

“We should keep as wholeas possible such programs asmeat and poultry inspection,warehouse and grain dealeroversight, weights and meas-ures services, pesticide use,food and agricultural prod-ucts inspection, and animalhealth,” Semlow said.

“Our support includesmany other programs thatprovide direct support to pro-duction agriculture, such asthe Soil and Water Conserva-tion Districts, University ofIllinois Extension, county

fairs, and others,” he added.IFB again will support leg-

islation to establish reason-able regulations for hydraulicfracturing or fracking and

horizontal drilling operations.Those regulations would pro-vide appropriate safeguardsfor the protection of landand water resources.

Negotiations on establish-ing regulations have beenongoing for some time.

“IFB will continue to workwith legislators and interestedparties to develop regulationsthat protect natural resources,our members’ property rights,and allows for successfuldevelopment of hydraulicfracturing in Illinois,” Semlowadded.

An issue expected to resur-face is an increase in the min-imum wage.

IFB opposes an inflation-

ary increase in the minimumwage along with proposedremoval of the overtimeexemption for ag employers.

“This will be a big issueagain this year, and IFB willcommunicate to the legisla-tion sponsor and other legis-lators about our strong oppo-sition,” Semlow said.

Other legislative prioritiesinclude:

• Legislation mandatingthat any decision to perma-nently close a road or perma-nently post a reduced-weightlimit would require the unani-mous approval of the roadcommissioner, county engi-neer, and a majority of theelected members of the boardassociated with the road dis-trict;

• Legislation to establishstatewide standards for com-mercial wind energy genera-tion systems that provide ade-quate protection of privateproperty rights and allow forreasonable development ofcommercial wind energy proj-ects. — Kay Shipman

IFB focusing on state budget in upcoming spring session

BY KAY SHIPMANFarmWeek

State legislators did not resolve the loomingpension debt or other pending issues last weekduring the first few days of the lame duck leg-islative session.

Representatives were scheduled to returnSunday (Jan. 6) and continue through Tuesday,while the Senate might return Tuesday.

“In the closing minutes of Thursday’s ses-sion, Senate President (John) Cullerton indicat-ed the Senate may return on Tuesday to takeaction on items the House may consider,” saidKevin Semlow, Illinois Farm Bureau directorof state legislation. “But Cullerton hinted itwas highly unlikely that senators wouldreturn.”

The Senate took no further action toaddress the $94.6 billion unfunded liabilityof the state employee and teacher pen-sion system.

Senate leaders indicated the Housealready has legislation, which theSenate passed in the spring, toinstitute partial pensionreforms for state employeesand state legislators, Sem-low noted. The underly-ing message from theSenate was that theHouse should passits pension meas-ures first, headded.

The issue of guncontrol surfacedwith proposals torestrict the use andsale of certain

types of guns through amendments to HB 815and HB 1263. IFB opposes both amended bills.

The Senate didn’t take any action on the bills,which are on the Senate floor and could beaddressed Tuesday if the Senate returns.

HB 815 would limit ownership and use oflarge-capacity ammunition feeding devices,starting Jan. 1, 2014. The bill would exempt amagazine, belt, or similar device that holdsmore than 10 rounds if the device wereowned before Jan. 1, 2014.

HB 1263 would ban assault weapons, .50-caliber rifles, and other special firearms.Strict criminal penalties would be establishedfor individuals who possess those types of

weapons. An individual who owns suchweapons before Jan. 1, 2014, and registersthem with the Illinois State Police would

be exempt from the ban.Shooting ranges and law enforcement

officials would be able to own thosetypes of weapons, and shooting ranges

could lease those weapons for useon their premises only.

Another issue was a propos-al to legalize same-sex mar-

riage via an amendment HB4963. IFB opposes theamendment.

The Senate ExecutiveCommittee passed theamendment on an 8-5

vote. However, thebill’s sponsor did notcall the bill for a voteafter it became clear

there were not enoughSenate votes for pas-sage.

government

Page 3 Monday, January 7, 2013 FarmWeek

Fiscal package offers short-term biofuels spurtBY MARTIN ROSSFarmWeek

Congress has providedanother temporary growthspurt for the biofuels sector,which hopes to power majornew supplies and demand in2013.

As part of last week’s last-minute “fiscal cliff ” package,lawmakers granted a one-yearextension of the expiring cellu-losic ethanol producer taxcredit and the alternative fuelinfrastructure tax credit forretailers who install new multi-blend “flex pumps” or dedicat-ed E85 pumps.

Congress extended the $1-per-gallon biodiesel fuelblenders tax credit to 2013 andmade it retroactive for 2012.That means diesel fuel suppli-

2013-2014 next-gen startupswill buoy support for furtherextension of the cellulosiccredit. Meanwhile, he seesextension of the infrastructuretax credit as “a critical step” inbringing E15 (15 percentethanol blends) to consumers.

With ethanol productionbumping up against finitedemand for E10, E15 is key tosector growth. Installation offlex pumps, which dispensevarious blends, is seen as cru-cial to breaking the current“blend wall” (see accompany-ing chart).

Retailers receive a greatercredit for adding E85 pumps

than for installing flexpumps. Growth Energypushed unsuccessfully forlawmakers to provide “moreequitable” credits for allblends above E10, Buis said.

“We still have productionovercapacity out there —that’s part of what’s depressedprices and margins in theethanol industry and whywe’ve recently seen plants cutback or close,” he reported.

“Until we scale that blendwall and have that marketaccess, we’re going to seesome very difficult times.That’s why it’s so critical to getE15 into the marketplace.”

ers who blended soy-based orother biofuels can receive cred-its for the past year as well asthrough next Dec. 31.

The biodiesel credit expiredJan. 1, 2012, and biodiesel inter-ests had lobbied all year for itsrestoration. The American Soy-bean Association listed creditextension as well as estate taxrelief among its “foremost pri-orities.”

Tom Buis, president of thebiofuels group Growth Energy,lamented congressional failureto approve more long-termextension of biofuels credits,arguing “anybody in businessneeds more certainty than oneyear at a time.”

But along with recent reaffir-mation of 2013 federal Renew-able Fuel Standard (RFS2) corn

ethanol requirements, extensionof tax credits provides short-term security for an ethanolindustry that’s been on theropes amid drought and supply-and-demand concerns, Buissaid.

“How do you get marketaccess, direct to the consumer,when the competition controlsall the distribution at thepump?” he told FarmWeek.“We know we can compete,but if you’re blocked from themarket, you can’t compete.That’s why the RFS2 is stillimportant from the mandatestandpoint.

“But if you’re ever going tomake next-generation biofuelscompetitive, they’re going toneed a little help at the start.”

Buis hopes anticipated

Market entry for E15 has been slow as retailers absorb new federal andstate fuel regulations and modify fueling infrastructure. But this chartshows steady growth in the number of fuel locations nationwide that of-fer “flex pumps,” formerly known as blender pumps, which dispenseblends ranging from a standard E10 to E85 used in current flex-fuel ve-hicles. Flex pumps are seen as crucial in setting the stage for wide-scaleU.S. sale of E15.

Immigration, dairy, farmbill on AFBF agenda?

Delegates at next week’s American FarmBureau Federation (AFBF) annual meeting areexpected to address issues ranging from ag laborand renewable fuel mandates to dairy sectorconcerns and, possibly, goals for the next roundof farm bill debate.

Illinois Farm Bureau delegates will presenttheir national policy priorities during theNashville, Tenn., convention. Following recentdebate over the federal Renewable Fuel Standard(RFS2), IFB will support addition of AFBF lan-guage supporting the biofuels standard.

IFB also may engage in discussion of animalidentification and traceability and immigrationpolicy. AFBF delegates will consider support fora proposed two-tiered ag temporary worker pro-gram that would enable undocumented workersin the U.S. to continue working and give farmemployers greater flexibility in using foreign-born labor.

While AFBF staff was anticipating a relativelyuneventful delegate session, Congress’ failure toapprove a new farm bill could influence discussions.

“Not much has changed from last year,” AFBFDirector of Grassroots Advocacy Cody Lyon toldFarmWeek. “If anything, there may just be astrengthening of position and efforts to put us inthe right spot for the discussions this year.”

President Obama’s stated desire for laborreforms over the next few months could spurimmigration discussion, and transportation alsocould provide fodder for policy development, hesaid. National renewable fuels debate couldprove lively, possibly exploring measures toassure grain stocks for livestock and other mar-kets, according to Lyon.

The dairy industry remains particularly in fluxamid the farm bill stalemate. Lyon reported stateFarm Bureau resolution submissions were “allover the board,” and delegate debate couldbreak down among larger and smaller dairy pro-duction states.

In addition, Ann Larson of Shabbona willrepresent IFB in AFBF’s Young Leader Discus-sion Meet finals in Nashville. IFB Young LeaderAchievement Award winners Chad and AshlieBroster of Mount Carmel will compete forAFBF’s top Young Farmer and Rancher award.

And three Illinois county Farm Bureaus willbe recognized at the convention through AFBF’sCounty Activities of Excellence Program. CookCounty’s County Staff Exchange, GrundyCounty’s Grow a Garden, Feed a Family project,and Livingston County’s Project PAIL (Promot-ing Agriculture in Literature) will be featured onthe AFBF exhibit floor. — Martin Ross

Continued from page 1colleagues in reviving interest in what he termed “a newer, transi-tional, thoughtful farm program.”

Beyond commodity programs, the national Center for RuralAffairs called the extension a “disaster.” Executive Director ChuckHassebrook argued the farm bill deal endangers “many smaller, tar-geted programs that invest in proven strategies to create rural jobs,revitalize rural communities and initiatives to foster a new genera-tion of family farmers.”

The deal also prevents farmers from being able to improve soiland water conservation through new enrollments in the Conserva-tion Stewardship Program, Hassebrook warned.

“The fiscal cliff bill does not address deficit reduction, whereasthe 2012 farm bill as passed by the full Senate and the House Agri-culture Committee would have saved taxpayers $23 billion and $33billion, respectively, while maintaining needed funding for impor-tant conservation programs.”

Tom Buis, CEO of the biofuels group Growth Energy, calledthe extension a “big disappointment” for prospective next-genera-tion biofuels producers.

Lawmakers reauthorized USDA’s Biomass Crop Assistance Pro-gram (BCAP) and Biorefinery Assistance Program (BAP), as wellas the Rural Energy for America Program (REAP), which helpsproducers and small businesses complete renewable energy systemsor energy efficiency improvements and conduct energy audits andhelps foster renewable energy development. But again, those pro-grams received no new funding.

“After the ’08 farm bill, (BCAP and BAP) were slow in gettingstarted,” Buis told FarmWeek. “USDA finally got them working,but it takes awhile. It would be a shame to pull the rug out fromunder them at this point.

“If (farmers and entrepreneurs are) going to develop next-gen-eration biofuels, they’re going to need some incubation. Gettingnew appropriations in this type of budget climate is going to bepretty darned hard.” — Martin Ross

Farm bill

Fiscal cliffContinued from page 1

$200,000 of purchases in 2014 and subsequenttax years.

Congress extended 50 percent bonus depreca-tion for the 2013 tax year — an additional benefitfor farmers planning near-term capital invest-ments.

An IFB “action request” generated more than4,400 member contacts from Nov. 30 throughDec. 7 in support of existing estate tax/capitalgains provisions, extension of Section 179expensing and bonus depreciation, and continua-tion of renewable fuels and energy tax credits.

Beyond extending cellulosic ethanol and biofu-els infrastructure tax credits and reviving anexpired biodiesel credit Congress provided first-year 50 percent bonus depreciation for cellulosicbiofuels facilities.

Lawmakers also extended for one year a pro-

duction tax credit of 2.2 cents per kilowatt-hourfor production of electricity from wind energyand the Community and Distributed Wind Invest-ment Tax Credit, which renewable electricity pro-ducers can use in lieu of the production credit.

Illinois U.S. House members supporting thefiscal cliff measure included Republicans JudyBiggert of Hinsdale, Robert Dold of Kenilworth,Tim Johnson of Urbana, Adam Kinzinger ofManteno, Don Manzullo of Leaf River, AaronSchock of Peoria, and John Shimkus ofCollinsville, and Democrats Jerry Costello ofBelleville, Jan Schakowsky of Evanston, andChicago’s Dan Davis, Luis Gutierrez, Dan Lipins-ki, Mike Quigley, and Bobby Rush.

“We were able to help persuade the vast major-ity of our (Congressional) delegation to supportthe bill and resolve some of our biggest-ticketagenda items,” Nelson noted.

watershed issues

FarmWeek Page 4 Monday, January 7, 2013

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River rock removal continuing on scheduleBY MARTIN ROSSFarmWeek

Rock removal in the Thebesreach of the Upper Mississippiwas “progressing beautifully,”St. Louis District Corps ofEngineers spokesman MikePetersen told FarmWeek latelast week.

some delays moving throughthe area. But Petersen said nospecial navigation restrictionshave been necessary.

He reported barge delays sim-ilarly have been minimal at Lock27 at Chain of Rocks, where theCorps is overseeing replacementof miter gates and other repairs.

“It’s significant that we’ve

gotten through the harvest,”Petersen said. “We were look-ing at this issue back in August— the concern was that wewouldn’t be able to get harvestto market. But we’ve been ableto keep the channel open forthat. The campaign’s not over,but at least we’ve won a cou-ple of battles.”

Rock pinnacles, underwaterprojections within the naviga-tion channel, are potential low-water impediments to winterbarge movements in the key St.Louis to Cairo region. Rockblasting began Dec. 21 aftercontractors Newt Marine andDurocher Dock and Dredge

had mechanically excavatedmore accessible rock.

Petersen anticipated com-pletion of Thebes-area workby month’s end.

“They’ve addressed most ofthe rock within the 300-foot(wide) channel,” he toldFarmWeek. “There’s still a lotleft — a lot of ‘outliers’ (out-side the central channel) thatneed to be chased down.

“Those outliers constrictthe width of the channel. Alot of what we’re dealing withis at a bend just north ofThebes. When tows gothrough a bend, they need alot more room.”

The Corps expects soon toaward contracts for additionalrock removal near GrandTower. Removal of some 890cubic yards of rock wasdeemed crucial to maintainingthe area channel after Corpsofficials stated they wereunable to release added watersfrom Missouri River reservoirsto increase water depth to aidin Mississippi navigation.

In addition, the Corps todate has twice released watersfrom Carlyle Lake reservoir onthe Kaskaskia River to shoreup the Mississippi channel.Water has been diverted fromsome upstream Mississippilocks to further “minimize thefall of the river,” Petersen said.

Because Thebes crews havebeen working in 16-hour dailyshifts, tows have experienced

Jackson out; deputy top choice?

EPA turnabout ‘victory’ leaves key questionsAs 2013 drew to a close, livestock producers hailed U.S. Envi-

ronmental Protection Agency’s (EPA) decision to back away froma controversial clean water directive.

However, EPA may simply have opted to fight another day formore stringent ag regulation, American Farm Bureau Federation(AFBF) regulatory specialist Don Parrish suggested.

Last month, EPA withdrew an order demanding a West Vir-ginia poultry grower obtain a federal clean water permit for herfarm. EPA had ordered Lois Alt to obtain a Clean Water Act dis-charge permit for stormwater runoff from her farmyard or faceup to $37,500 per day in penalties.

EPA’s withdrawal of the order came six months after Alt filedsuit against the agency and six weeks before Alt and the AFBFwere scheduled to file briefs challenging EPA’s interpretation ofthe law.

The U.S. District Court for the Northern District of West Vir-ginia ruled in October that AFBF and West Virginia Farm Bureauhad the right to join Alt’s lawsuit.

EPA had opposed the Farm Bureaus’ participation, and whileEPA’s order withdrawal was a victory for Alt, it leaves unresolveda major legal issue with serious implications for other livestockand poultry farmers that must be addressed, according to AFBFGeneral Counsel Ellen Steen.

EPA has not backed away from its position that any amount ofon-ground “pollutant” at a poultry or livestock farm requires alivestock permit, and apparently “does not want to defend itsposition in court,” Steen said.

By keeping the issue out of court, EPA essentially “hasreserved the right to try to bully individuals with this same type ofapproach, anywhere it wants to,” Parrish said.

“Rather than settling this as a point of law, (EPA) wants to keepthose arrows in its quiver, to pick off individual farms on a case-by-case basis,” he told FarmWeek. “I see this administration beingpretty active in the environmental arena, and I don’t see any way tostop it.”

In withdrawing its permit order, EPA cited new managementpractices identified in a May 2012 reinspection of the Alt farm.But EPA’s report also stated dust, feathers, and small amounts ofmanure still were observed on the ground at the farm — the basisof EPA’s order, Steen noted.

Over the past year, lawmakers have made a pass at staying EPA’sregulatory hand through the farm bill and other measures. But par-tisan rancor surrounding December’s fiscal debate and forthcom-ing haggling over the U.S. debt ceiling raise doubts about Congresstaking another run at regulators in 2013 or reaching “a consensuson anything to do with the environment,” Parrish said.

Even Senate confirmation of a successor to departing EPAAdministrator Lisa Jackson likely will prove a protracted and“nasty process,” he predicted.

Deputy Administrator Robert Perciasepe reportedly has theinside track for the job, though the short list also includes formerPennsylvania Department of Environmental Protection chiefKathleen McGinty and EPA’s Office of Air and Radiation Assis-tant Administrator Gina McCarthy.

Perciasepe will take the reins as acting administrator if the Sen-ate fails to confirm Jackson’s successor by her departure at month’send. Perciasepe generally has been charged with managing EPA’sregional offices, and is “maybe a little more pragmatic than LisaJackson” on the impact of federal regulations, Parrish said.

“That said, he’s been around a long time,” he noted. “He has abackground with the Audubon Society; he’s had a backgroundwith some of the state agencies. He’s been in (EPA’s) Office ofWater; he’s been in the Office of Air. He knows how to maneu-ver.” — Martin Ross

Crews continue to remove rock from the Thebes reach of the Upper Mis-sissippi River between St. Louis and Cairo last week. Contractors hopeto complete work in that area by the end of the month. Additional rockpinnacle removal will be contracted soon to ensure that barges will con-tinue to pass through the region this winter. (Photo by Steve Schulte Pho-tography for Illinois Farm Bureau)

ENviRoNmENt

Page 5 Monday, January 7, 2013 FarmWeek

2012 second-warmest on record

3-month forecast is encouragingBY DANIEL GRANTFarmWeek

Many farmers will remem-ber 2012 for its lack of precip-itation.

Illinois in 2012 received anaverage of 30.4 inches of pre-cipitation, 9.8 inches belownormal and the 10th driestyear on record, the IllinoisState Water Survey (ISWS)reported.

But it was exceptionallywarm temperatures that cata-pulted the drought to anotherlevel.

“I’m glad 2012 is over,” saidJim Angel, state climatologistwith ISWS. “It was one of thewarmest on record.”

The average statewide tem-perature in 2012 was 55.5degrees, 3.3 degrees abovenormal and the secondwarmest on record.

The average temperaturelast year missed tying the all-time record, set in 1921, byjust 0.1 of a degree.

Above-normal temperatures

last year were most prevalentfrom January through July andthen resurfaced last month.The statewide average temper-ature in December was 35.8degrees, 5.9 degrees abovenormal.

More winter-like condi-tions returned last week withsnow showers and colder tem-peratures.

AccuWeather last weekreported 67 percent of thecontiguous U.S. was coveredby snow on Jan. 1, the widestcoverage of snow on that datein the U.S. in the past decade.

But it’s unlikely winter pre-cipitation will rebuild low soilmoisture levels, according toAngel.

“It will be hard to recover(from the drought), especiallyin January and February,” hesaid. “We receive just twoinches (of precipitation) eachmonth, on average. Andthere’s the added complicationthat, if the ground is frozen,(precipitation) may not makeit into the soil.”

Subsoil moisture in Illinoislast week was rated 67 percent

short or very short, 32 per-cent adequate, and just 1 per-cent surplus.

The good news is thethree-month forecast isencouraging and historicalrecords indicate the chance ofanother severe drought in2013 is low, according toAngel.

“It would be extraordinaryto have two back-to-back verydry years,” he said.

The National Weather Ser-vice’s three-month outlookfor January through March isfor an increased chance ofabove-normal precipitation ina large portion of the OhioRiver Valley, including thesouthern half of Illinois.

If the precipitation patternincreases, it’s form (rain, sleet,or snow) will depend on thetemperature.

Weather Services Interna-tional recently predicted tem-peratures from Januarythrough March will be belownormal in the northern U.S.and warmer than normal inthe southern U.S., especially inthe Southwest.

Cover crops stretchingfarmer’s hay suppliesBY KAY SHIPMANFarmWeek

To Jasper County farmer Joe Bergbower, his cattle grazing onsnowcovered tillage radishes and turnips made a beautiful sightlast week. In addition to providing scenic value, Bergbower’s 240acres of cover crops also are supplementing his hay supply.

“This year was ideal. The perfect year (for cover crops),”Bergbower said.

After harvesting 240 acres of corn silage, the Newton farmerplanted a mix of turnips, tillage radishes, crimson clover, and rye.It is a mixture that he has perfected over the past four years.

Previously the 40 cows in Bergbower’s cow-calf herd wouldeat a large round bale of hay each day. Now, they spend hoursgrazing on turnips and tillage radishes and consume about onebale per week, he said.

Over time, Bergbower perfected not only his cover crop mix-ture, but also his planting and management practices.

After harvesting corn silage off the field, Bergbower mixeshis cover crop seed with fertilizer and then broadcasts the mix-ture. Then he rolls the field with a roller.

In the spring, Bergbower said he will apply Roundup as a burndown and do minimum tillage on the cover crop fields beforeplanting.

The farmer said he has noticed the cover crops improve thesoil condition by breaking up compacted layers. The improvedsoils also attract many worms, he added.

Bergbower advised interested farmers to ease into covercrops. He planted 15 acres his first couple of years and tried dif-ferent seed mixtures before finding one that met his needs.

Workshop focus cover crop strategies A two-day workshop on cover crop strategies specifically for

Illinois farms will be Jan. 29-30 in the Decatur Hotel and Con-ference Center. The early registration deadline is Jan. 21.

The meeting will be hosted by the Soil and Water Conserva-tion Society and will provide sessions on a variety of topics.Speakers will include farmers, crop consultants, and universityresearchers who have extensive experience with cover crops.

Through Jan. 21, the registration fee is $49. After that date,the fee will be $75 for one day and $125 for both days.

Topics will include different cover crop species and specieblends, seeding options, herbicide burndown, regional applica-tions for corn and soybean fields in Northern, Central, andSouthern Illinois.

For more information or to register, go online to {swcs.org}.

Jasper County farmer Joe Bergbower shows a turnip, left, and a tillageradish he grew in a cover crop near Newton. Bergbower’s cattle grazeoverwinter on cover crops, which had an ideal growing season this fall.(Photo courtesy Joe Bergbower)

production

FarmWeek Page 6 Monday, January 7, 2013

MAZIMIZING EVERY ACRE

Farmers advised to monitor stored grainBY DANIEL GRANTFarmWeek

It’s a new year but farmerswho have drought-stressedgrain in storage couldencounter some of the samequality issues that showed upduring the 2012 harvest.

The mold that causes afla-toxin could start producingmore aflatoxin in stored grainif any hot spots inside binsreach 50 degrees or more.

Farmers, therefore, shouldcontinue to monitor stored

stored grain in coming monthsbecause the majority of the2012 harvest went into commer-cial storage. Many farmers lastfall hauled their crops directly totheir local elevators to avoidstorage issues and take advan-tage of premiums in the market.

“The vast majority of farm-ers didn’t even try to store thiscrop,” he said. “They took itdirectly to market. Elevators arebetter equipped to dry it andclean it, in most cases.”

Farmers who have grain in

on-farm storage should not goinside their bins to monitor it,Rasmus said.

They should make a visualassessment of the stored grainand monitor the exhaust odors.Those who are building newbins or updating facilities canhave cables installed in the binsthat monitor the temperatureand moisture of the grain.

Some high-tech grain binmonitoring systems even alertfarmers when it’s time to runthe fans, Rasmus added.

grain even though the ambienttemperature has plummeted tosome of the lowest levels so farthis winter, according to BobRasmus, GROWMARK grainsystems marketing manager.

“Farmers should be watch-ing grain in bins,” Rasmus said.“It needs to be monitored.”

Farmers should monitor thegrain temperature, moisturelevels, and check for possibleinsect and rodent infestation.

Signs of possible grain quali-ty issues in stored grain include

a hard layer on top of the grain,warm grain beneath the surface,condensation under the binroof, and a musty or sour odor.

Farmers who find grainquality issues should start run-ning bin fans as soon as possi-ble and consider shipping thegrain, Rasmus said.

“We’ll probably see most ofit (farm-stored grain) move inMarch (which is normal eachseason),” Rasmus said.

Rasmus said he doesn’texpect major problems with

Popular seed varieties in short supply for ’12 Farmers who have not

secured their seed supply forthe upcoming growing seasonshould stay in close contactwith their seed suppliers.

Some popular corn vari-eties are in short supply, or insome cases sold out, untilSouth American productionarrives, according to LanceRuppert, FS seed sales andmarketing manager.

“We might gain units furtherinto winter (when products areavailable from South Ameri-

The Ag Department onFriday will finalize its 2012crop production estimates.

In South America, plantingwas delayed last fall due to wetconditions, particularly inArgentina. A cooler growingseason also could delay matu-rity of the crops.

“It probably will causemore seed to be flown back tothe U.S. (rather than shippedvia boat, which will add tocosts),” Ruppert said. “Butthings are on target (with pro-duction estimates).”

U.S. farmers last fallresponded to the tight supply

of seeds by booking ordersahead of the usual pace. Butthe pace of orders sloweddown recently, Ruppertreported.

“(Farmers) should keep incontact with their seed suppli-ers,” he said. “If it’s in theshed, it’s always a good idea totake delivery.”

Ruppert predicted the num-ber of corn-on-corn acres coulddecline in some areas due to per-formance issues the past coupleyears. But, overall, he expects alarge amount of corn and soy-beans to be planted in the U.S.this spring. — Daniel Grant

ca),” Ruppert told FarmWeek.The soybean seed supply

also is tight, despite better-than-expected yields on manyfarms last year.

The decent soy yields weredue to larger seeds and notmore pods per plant, accord-ing to Ruppert. Soy seed salesare based on the number ofseeds per unit.

“The quality is good, butthere is a tighter supply (ofsoybean seed) than in the lastfew years,” Ruppert said. “The

seed size is big, so farmersmay have to adjust theirplanters.”

Tight seed supplies are theresult of last year’s drought.Demand also is strong asfarmers are expected to planta large number of corn andbean acres this spring.

Crop production in Illinoislast year declined 36 percentfor corn and 11 percent forsoybeans, compared to 2011,due to drought losses, accord-ing to USDA.

Extension offering webinar series on farming topics

The University of Illinois will offer 12 weekly webinars,starting Thursday, on farm production practices, management,and marketing. The free webinars will be presented by Exten-sion’s network of small farm educators.

The series is aimed at providing farmers of small acreagesand others information to help them improve their farms’profitability and sustainability.

Interested participants may register until the day before aspecific session or register for all the sessions simultaneously.To register, go to {http://extension.illinois.edu/go/small-farmswebinar}.

Participants may submit questions during the sessions. However, each session will be archived and may be viewed

at any time.January dates and topics are: Thursday, raising broiler

turkeys on small farms; Jan. 17, strawberry production; Jan. 24,water sanitation for small farms’ produce; and Jan. 31, wildlifedamage control.

February dates and topics are: Feb. 7, basics of fruit insectmanagement; Feb. 14, introduction to farm financial manage-ment; Feb. 21, seed saving; and Feb. 28, managing crop rota-tions in high tunnels.

March dates and topics are: March 7, farm-to-school sales;March 14, beneficial insects; March 21, weed control in pas-tures; and March 28, crop budgeting practices.

Ag info offered on U of IExtension Pinterest boards

Agriculture, food and nutrition, and gardening are among thetopics offered on the University of Illinois Extension Pinterestboards.

Pinterest is an online content-sharing service that allows indi-viduals to “pin” image, videos, and other information to theirboard. Think of it as a bulletin board of items you like, want tokeep, or share with others.

To find the site, go online to {pinterest.com/uiextension}.

extension

Page 7 Monday, January 7, 2013 FarmWeek

U of I Extension seeking research answers for Illinois’ problemsBY KAY SHIPMANFarmWeek

Illinois taxpayers will getmore bang for their research

bucks asmore Univer-sity of Illi-nois researchreaches thepublic,according toBob Hoeft,the U of I’sinterim asso-ciate dean for

Extension and outreach.Recently Hoeft reported

an effort was under way to

for public benefit.“The opportunities are

there to take the tax dollarswe are paying and get theresearch out to the public, tomeet the needs and addresssome of the state’s majorproblems,” he said.

To address the needs ofnew vegetable and fruitgrowers, Extension educa-tors are planning all-day,hands-on sessions.

The sessions will be con-ducted on universityresearch farms at DixonSprings (Simpson), Cham-paign, and St. Charles. The

upcoming sessions areattracting much interest,Hoeft noted.

Extension educators areteaching nutrition to low-income people in the EastSt. Louis area by sharinginformation during groceryshopping trips. On the busride back from the store, theeducator discusses properstorage, handling, and usesfor produce and other foods.

Extension programs andinformation about nutritionand health also will be key ina new program being devel-oped with a Chicago publichospital.

Hoeft said hospital offi-cials originally approacheduniversity specialists to helpstart a 100-acre vegetablefarm. The idea evolved intoeducational programs tocontrol heart disease, dia-betes, and other diseasesthrough improved diet,according to Hoeft.

tap experts across the uni-versity to develop research-based Extension programs.Dean Bob Hauser of theCollege of Agricultural,Consumer, and Environmen-tal Sciences (ACES) is lead-ing the effort.

“Millions of dollars ofresearch is being done and itnever gets out. It’s publishedin a journal. The researchdoesn’t get used, and that’swhat Extension is all about,”Hoeft said.

He pointed to U of Ikinesiology research intoexercise for specific human

conditions; however, thoseresults have not been offered

Bob Hoeft

Milk prices drop $2The Class III price for milk adjusted to 3.5 percent butterfat

for the month of December was $18.66 per hundredweight,$2.17 lower than the previous month. The last time producerssaw a $2 drop in price was during the summer of 2011.

Although consumers avoided the much talked about “dairycliff,” prices seemed to be due for a correction.

Higher production numbers, coupled with more cows beingmilked compared to last year, are contributing to more milk onthe market. This has softened prices considerably.

Survey results show need for farmer, consumer conversationsConsumers and farmers see a

need to share information abouthow food is grown and raised,according to recently releasedresults of a U.S. Farmers & Ranch-ers Alliance (USFRA) survey.

The survey of 1,250 con-sumers nationwide with anadditional 236 New York Cityconsumers and 501 farmersand ranchers nationwide wasconducted in late October.

Among the key consumerfindings:

• 53 percent of consumerrespondents believe food pro-duction is heading in the rightdirection, up from 48 percentwho responded to a 2011USFRA survey.

• More than one in fourrespondents (27 percent) admit

they often are confused aboutthe food they are buying.Young adults ages 18 to 29 (38percent) are more likely to beconfused about food purchas-es than any other age group.

• Three in five said theywould like to know more abouthow food is grown and raised,but they don’t feel they havethe time or money to makethat a priority (59 percent).

• Respondents overall (84percent) believe farmers andranchers in America are com-mitted to improving how foodis grown and raised.

Among farmers and rancherrespondents, the survey find-ings indicated:

• Three-fourths believe theaverage consumer has little or

no knowledge about food pro-duction in the U.S. Nearly threeout of five farmers and ranch-ers believe consumers have aninaccurate perception of mod-ern agriculture (59 percent).

• Farmers and rancherswant to see more emphasis onsustainability and the environ-ment (42 percent) and trans-parency with consumers andcustomers (36 percent).

USFRA is comprised ofmore than 80 farmer- andrancher-led organizations,including Illinois Farm Bureau,and agricultural partners work-ing to have conversations withconsumers who have questionsabout how food is grown.

To learn more aboutUSFRA’s survey results, see theNews and Information sectionof {fooddialogues.com}.

FarmWeek Page 8 Monday, January 7, 2013

from the counties

Page 9 Monday, January 7, 2013 FarmWeek

*Price per person, based on double occupancy. Airfare is extra. For reservations & details

call 7 days a week:

1-800-736-7300

Travel with other Farmers!Rocky Mountain & Western Frontier

14 Days from $1658*COLORADO - WYOMING - SOUTH DAKOTA - MONTANA - UTAH

Plus...Yellowstone National Park

Depart July 10 & August 14, 2013Your tour begins and ends in the “Mile High City” of Denver, followed by Cheyenne, WY. The next two days you will visit Fort Laramie; Mount Rushmore and Crazy Horse Memorial in South Dakota. Then return to Wyoming with a stop in Deadwood, continuing through the Black Hills to Little Big Horn Battle�eld and the Bu�alo Bill Historical Center. Then you will depart for Yellowstone National Park (two days) with extensive sightseeing, including Old Faithful and Hayden Valley. Your journey continues to Grand Tetons National Park with spectacular landscape; Jackson Hole, WY; Salt Lake City, UT with a city tour including the Great Salt Lake and opportunity to witness the Tabernacle choir rehersal. Then travel West visiting the Utah Field House Museum; Dinosaur National Monument and explore the vast variety of fossils and Rocky Mountain National Park including a drive through the park on Trail Ridge Road.

BROWN — FarmBureau’s annual

meeting will be at 7 p.m.Wednesday, Jan. 16, in theFarm Bureau office base-ment in Mt. Sterling. Callthe Farm Bureau office at773-2634 for more informa-tion.

COLES — FarmBureau will sponsor a

family bowling party at 3p.m. Saturday, Jan. 19, at theCharleston Lanes. Cost is$1.50 per game and $1.50for shoe rental. Call theFarm Bureau office at 345-3276 for reservations.

• Farm Bureau’s annualmeeting will be at 5:30 p.m.Monday, Jan. 21, at theLifespan Center, Charleston.Cost is $9. Call the FarmBureau office at 345-3276by Friday for reservations ormore information.

GRUNDY — FarmBureau’s annual

meeting will be at 5 p.m.Thursday, Jan. 10, atChapin’s North BanquetFacility in Morris. Cost is

be postmarked by March 1.Call the Farm Bureau officeat 877-2436 for more infor-mation.

MONTGOMERY —Farm Bureau Prime

Timers will sponsor a lunch-eon and meeting onWednesday, Jan. 16, at theFarm Bureau office. Cost is$8. Montgomery CountyBoard Chairman Roy Hertelwill be the guest speaker.Call 532-6171 by Jan. 11 forreservations or more infor-mation.

VERMILION —Farm Bureau will

sponsor a spring outlookseminar at 9:30 a.m. Mon-day, Jan. 21, in the FarmBureau Auditorium. Speak-ers will include Dale Durch-holz, AgriVisor; Wayne Nel-son, L&M Commodities;Jason Risley, JBS United;and Suzi Etchison, StewartGrain.

WAYNE — A 2013crop insurance pro-

gram will be at 7 p.m. Tues-day, Jan. 22, at the FrontierCommunity College Founda-tion Hall, Fairfield. DougYoder, Illinois Farm Bureausenior director of affiliate

and risk management, andRon Gray, Country Financialcrop specialist, will be thespeakers. Call the FarmBureau office at 842-3342for reservations or moreinformation.

WHITE — Theannual meeting will

be at 10:30 a.m. Friday atthe Farm Bureau office.Read the complete notice ofthe annual meeting at{whitecfb.com}. Call theFarm Bureau office forreservations.

• A silent auction benefit-ing the White County Ag inthe Classroom program willbe held in conjunction withthe annual meeting on Fri-day. Contact Brianne Fosterat 618-599-6338 if you havean item to donate for theauction.

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

$15. The keynote speakerwill be Rep. Pam Roth (R-Coal City). Call the FarmBureau office at 942-6400for more information ortickets.

LASALLE — TheYoung Leader Com-

mittee will sponsor its annu-al kickoff meeting at 6:30p.m. Wednesday, Jan. 16, atBianchi’s Pizza in Ottawa.Members between the agesof 18 and 35 may attend.Call the Farm Bureau officeat 433-0371 for more infor-mation.

LEE — District 4Young Leaders from

Bureau, LaSalle, and LeeCounty Farm Bureaus willsponsor a curling event at 7p.m. Friday in Triumph. Callthe Farm Bureau office at857-3531 or emailleecfb@comcast.net formore information or tomake a reservation.

• Farm Bureau will form acommittee to plan the coun-ty Farm Bureau’s 100th yearcelebration and to compile

the history of the organiza-tion. Contact the FarmBureau office at 857-3531 oremail leecfb@comcast.net ifyou are interested in servingon the committee.

• The Young Leaders willattend an Ice Hogs hockeygame on Saturday, Feb. 16,in Rockford. Tickets are$12. Contact the FarmBureau office at 857-3531 oremail leecfb@comcast.netfor more information orreservations.

LIVINGSTON —Farm Bureau will

offer Farm Bureau membersa $150 reimbursementtoward the purchase of aROPS (Rollover ProtectiveStructures). Deadline toreceive the reimbursement isJan. 31. To receive the reim-bursement, bring paidinvoice to the Farm Bureauoffice. Call the Farm Bureaufor participating dealers.

MACON — MaconCounty Farm

Bureau scholarships areavailable to members major-ing in an agricultural-relatedfield. Scholarship applica-tions are available at{maconcfb.org} and must

Chicago Farmers to discuss wind easements, pipelines

The Chicago Farmers will discuss wind easements, pipelineprojects, and transmission lines Monday in the Illini Center, 200S. Wacker Drive, Chicago. Reservations are due by Friday.

Ryan Gammelgard, an Illinois Farm Bureau attorney, willshare information that landowners should know about easementagreements related to public utility, pipeline, or wind projectsproposed to cross their land.

His presentation will address provisions which may be includ-ed in these agreements, those to avoid, and general informationon how to protect a landowners’ interests. He also will providean overview of some current projects.

Registration will start at 11:30 a.m., followed by the meal andprogram at noon.

The member fee is $25 in advance or $35 at the door. Thenon-member fee is $50.

Register online at {chicagofarmers.org} or by calling 312-388-3276.

proFitability

FarmWeek Page 10 Monday, January 7, 2013

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn 12/27/201212/27/2012 35.5 7.8 7.9 12/20/2012 45.4 15.2 13.9Last year 34.4 13.4 25.2Season total 774.0 515.8 255.7Previous season total 566.4 596.3 548.1USDA projected total 1345 1050 1150Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $32.25-$61.49 $45.5240 lbs. n/a n/a

Receipts This Week Last Week 92,156 61,467*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $80.64 $75.88 4.76 Live $80.67 $56.15 24.52

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

Steers n/a 127.24 n/a Heifers n/a 127.00 n/a

USDA five-state area slaughter cattle price

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

This week Prev. week Change 149.58 147.46 n/a

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

Slaughter Prices - Negotiated, Live, wooled and shorn 120-176 lbs. for94-120 $/cwt. (wtd. ave. 106.23)

Scott County FSA officeto go to part time hours

Effective today (Monday), the Scott County Farm ServiceAgency (FSA) office in Winchester will be open one day eachweek, according to FSA State Executive Director Scherrie Gia-manco.

The office will remain open from 8 a.m. to 4:30 p.m. Wednes-day for normal FSA business and closed the remainder of theweek.

Business hours of other co-located agencies, such as NaturalResources Conservation Service, the Soil and Water ConservationDistrict, and Rural Development, will remain unchanged.

Customers may continue to conduct all FSA business at theScott County FSA office on Wednesday.

FSA customers wishing to have access to FSA on a full-timebasis will have the opportunity to transfer their farms to an adja-cent county FSA Service Center.

For more information regarding the revised office hours orthe transfer of farms, contact Rebecca Walls, county executivedirector, Greene County FSA Service Center, at 217-942-5402.

Economist: Hog prices could rise despite large inventoryBY DANIEL GRANTFarmWeek

Hog prices could improvethis year compared to last yeardespite the fact USDA recentlypredicted larger-than-expectedherd numbers.

USDA in its quarterly hogsand pigs report last month esti-mated the inventory of all hogsand pigs in the U.S. as of Dec. 1totaled 66.3 million head, downslightly from a year ago but wellabove pre-report estimates.

“The report indicated thereis about 1 percent more hogsthan pre-report estimates,”said Ron Plain, ag economist atthe University of Missouri.

Many analysts and econo-mists predicted the U.S.swine herd would shrink due

to high feed prices.“We’ve cut back a little bit,

but nothing like what wasimplied in September (when

USDA pro-jected hogfarrowingswould decline3 percent),”Plain said.“What hogproducersreally did wasstop herdexpansion,

due to higher feed costs andred ink.”

The herd could grow in2013, though, as the breedinginventory (5.82 million head)was up slightly from a year ago.

U.S. hog farmers the first

quarter of this year intend to far-row 2.86 million sows, up from ayear ago, USDA reported.

Plain predicted the largehog inventory this year willlead to a slight increase inslaughter, about 0.2 of a per-cent, compared to last year.

One reason hog productionhas remained steady isimproved efficiency. Hog pro-ducers last quarter set a newrecord with an average of10.15 pigs saved per litter.

“Even though I’m expectingsimilar to slightly higherslaughter numbers this year, Ithink we’ll end up with slightlyhigher prices,” Plain said. “Alot of that is based on the com-peting meat supply tightening.”

“If it rains, there could be abig drop in feed costs,” hecontinued. “But these hogprices I’m expecting won’t beenough to cover the cost ofproduction if corn stays at $7(per bushel).”

U.S. pork exports could setanother record this year, whichalso would support prices.

“With Europe’s new hous-ing rules (which took effectJan. 1), they (the Europeans)will be less competitive in theworld pork market,” Plain said.“That should be good newsfor U.S. pork exports.”

A ban on sow gestationstalls and other welfare regula-tions took effect Jan. 1 in theEuropean Union.

The economist projectedU.S. output of beef, chicken,and turkey will decline this year.

He predicted hog pricescould average in the low $80sper hundredweight the first

quarter, the low $90s in thesecond and third quarters, andback to the $80s in the fourthquarter.

“Whether those prices willbe profitable depends on sum-mer weather,” Plain said.

Ron Plain

FarmWeekNow.com

To check out the status of theI l l i no i s hog indus t r y f romt h i s l a t e s t r e p o r t , g o t oFarmWeekNow.com.

USDA to release key reports FridayUSDA’s highly anticipated

reports Friday will providesome direction for the cropmarkets.

USDA will release its finalproduction estimates for the2012 corn and soybean crops,the winter wheat seedingsreport, and the monthly worldagricultural supply anddemand estimates.

“We’ll get a lot of differentpieces (of the crop supply anddemand picture) on Friday,”said Cory Winstead, AgriVisormarket analyst.

Winstead predicted the finalcrop production estimatescould be lower than the previ-ous forecast. He projected U.S.corn production could be low-ered from 10.72 billion bushelsto 10.69 billion bushels whilesoybean production could betrimmed from 2.97 billionbushels to 2.95 billion bushels.

“I think the (harvested)

acreage number is going to beless,” Winstead said. “That’swhere the lower productionnumber will come into play.”

USDA previously forecastnational average yields of 122.3bushels per acre for corn and39.3 bushels per acre for beans.The most recent Illinois yieldaverages were pegged at 101bushels per acre for corn

(down 56 bushels from a yearago) and 43 bushels per acrefor beans (down 4.5 bushelsfrom a year ago).

Winstead also predicted U.S.corn exports will be loweredon Friday due to the slow paceof shipments.

USDA will release county-level data for corn and beansFeb. 21. — Daniel Grant

AgriVisor website features podcastsPeople looking for additional insight into the ag markets and

news can use a new feature on the AgriVisor website.The site now features multi-weekly podcasts (audio market

commentary and interviews) about key market news and trends.The podcasts can be accessed by visiting the AgriVisor web-

site {AgriVisor.com} and clicking on the AgFanatics podcasticon.

“The idea is there is a lot of information out there,” saidCory Winstead of AgriVisor. “We try to consolidate it into 10-to 15-minute audio (segments).”

The podcasts include audio commentary from AgriVisoranalysts along with interviews of guest speakers. New podcaststypically will be posted to the site on Tuesdays, Thursdays, anddays of key USDA reports.

IMPA to host dairy meetings

Milk producers face post-drought challengesRecent rain and snowfall helped ease drought

concerns on many farms in Illinois.But dairy producers still face a number of

challenges heading into 2013, including lingeringeffects of the drought.

The Illinois Milk Producers Association(IMPA) this month will host three regional dairymeetings that will address topics that includefeeding drought-stressed forages, transition cowmanagement, a feeding update, and calf andheifer management.

The meetings will be Jan. 22 at HighlandCommunity College, Freeport; Jan. 23 at the Illi-nois Farm Bureau Building, Bloomington; andJan. 24 at Kaskaskia College, Centralia.

Each meeting will be from 9:30 a.m. to 2:50p.m. For details and registration, visit the website{illinoismilk.org} or call 309-557-3703.

“We’re seeing milk price declines,” said MikeHutjens, University of Illinois Extension dairyspecialist, who will be one of the speakers at thedairy meetings. “There certainly is concernabout where the price of milk will be in 2013.”

USDA this month reported Class III milkprices averaged $17.40 to $17.50 per hundred-weight, which was down from November prices.

“Prices could be down 10 to 15 percent if

futures estimates are correct,” Hutjens said.The dairy market has been saturated by

record milk production in New Zealand and hasbeen further pressured by economic concerns inthe U.S. and around the world.

U.S. milk production next year is projected toremain steady, compared to this year, at 199.7billion pounds.

Dairy producers should benefit from lowercorn and soy meal prices. But feed availability,feed quality, and high feed prices likely will remainissues for dairy producers well into next year. “We’re not out of the woods from thedrought yet,” Hutjens said.

Forages have stopped growing for the winter,supplies remain tight, and prices are high, thedairy specialist noted.

There also have been issues with forage quali-ty because many farmers harvested everythingpossible in an effort to address short supplies.Corn quality issues also could emerge once thetemperature warms up this spring.

“Aflatoxin could rear its head in the spring,”Hutjens said.

The dairy meetings next month also will featurea trade show, which will offer producers a chance tosee what’s new in the industry. — Daniel Grant

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 anyprojections, recommendations, or advice orany other act of omission.

CASH STRATEGISTCorn Strategy

ü2012 crop: The break tostart the new year confirmedthe short-term trend turneddown. From a timing perspec-tive, prices could stay weakthrough February. Use a rallyto $7 on March futures forcatch-up sales. We may add anincrement at that level, or wemay wait until after the USDAproduction, supply, anddemand reports on Friday.

ü2013 crop: The turn downaccelerated with the new year.But prices should be near ashort-term low. Use a bounceto $5.90 to make catch-up sales.If that comes in the next coupleof weeks, we could even add tosales, but we prefer to wait untilafter the USDA reports.

vFundamentals: Slowexport demand remains thebiggest fundamental drag onthe complex. Competitionfrom Brazil and feed wheatcontinue to divert demandfrom U.S. corn. But the biggerdriver of the decline in pricesmay have been hedge fund liq-uidation of long positions.But even as they drove priceslower, end users didn’t show aninclination to extend coverage.

Soybean Strategyü2012 crop: The break to

start the new year changed thecomplexion of the market. Userallies to $14 on March futuresto make catch-up sales. Target arally to $14.35 on March to adda sale; check the Hotline.

ü2013 crop: Use arebound to $13 on November2013 futures for catch-upsales. We would like to addanother increment but feel it’sstill too early to get too nega-tive. Still, check the Hotlineafter Friday’s USDA reports.

vFundamentals: Hedgefund liquidation pressuredrove the decline in the soy-bean complex to start theyear. Still, improving weatherin South America and reportsof very early harvest in Brazilwere enough to keep endusers sidelined. Adding to thenegative part of the mix weremore Chinese soybean cancel-lations. We think those are a“cancel/replace” order, butthey are being replaced bySouth American purchases.The focus for this week will

be the USDA reports.

Wheat Strategyü2012 crop: Chicago

March dropped through psy-chological support at $7.50,opening the door for it to sliptoward $7. We are reluctant toget too negative at this timewith the hard red winter cropin such poor condition. At aminimum there should be agood rebound for makingsales, one that could carryprices back toward $7.90.

ü2013 crop: The recentbreakdown all but ended thepossibility of seeing ChicagoJuly getting above $8 again.

Plan on using a rebound intothe $7.90s for adding to sales;check the Hotline frequently.

vFundamentals: The lat-est monthly crop conditionupdates for the SouthernPlains indicate the conditionof the hard red winter cropdeclined in December. Butinstead of focusing on that,the trade appears to be watch-ing the change in weather pat-tern that has started to bringmore weather systems overthe Southern Plains. Moisturehas not ended the drought,but the forecasts consistentlyhold promise for more.

Cents per bu.

Page 11 Monday, January 7, 2013 FarmWeek

South American crops look goodEven though Argentine

farmers have had to battle awet planting season, the totalsoybean crop picture in keySouth American countries isshaping up very good this year.

Brazil had few plantingproblems to start the season,although there was some anx-iousness about dryness in thenorth when planting began.Paraguay’s planting and earlygrowing season conditions alsohave been very good.

With the calendar flipping tothe new year, the focus willbecome even more intense. Butat this point, there’s reason toexpect good soybean cropsfrom all three countries.

Last week, the U.S. agricul-ture attaché in Brazil forecastan 83-million-metric-ton (3.05billion bushels) crop. That was2 mmt larger than the officialUSDA forecast, and slightlylarger than the official Brazilianforecast released in Decemberof 82.6 mmt. A new forecastwill be released on Jan. 9.

The Argentine governmenthasn’t released an official esti-mate yet, but it’s generallybelieved that country will pro-duce 55 mmt (2.02 billionbushels) this year.

Traders at the Buenos AiresGrain Exchange think planting

is 85 percent complete, withmostly double-crop plantingyet to do. They report the cropis in good shape.

Planting is thought to haveincreased nearly 5 percent inParaguay. And given the goodgrowing weather so far, somebelieve the crop there could beas large as 8.5 mmt, more thandouble last year.

The combined output of thethree could reach 146.5 mmt, ifnot higher. That’s equivalent to5.38 billion bushels.

The corn crop will be theloser in Argentina. The drag inplanting, 82 percent complete,could trim plantings more thanthe half million hectaresalready expected.

Traders in Buenos Airesindicate the crop that’s alreadyplanted is in good shape. Butthe trade is thinking the cropmight end up closer to 26 mmtinstead of the 27.5 mmt USDAforecast last month.

Prospects for Brazil aremore promising. Even thoughfirst crop plantings slippedslightly, better yields shouldboost output. The early start tosoybean harvest should pavethe way for timely planting ofthe second crop. The area isexpected to be the same, maybeslightly larger. Yields could slipfrom last year’s record, drop-ping output slightly.

In total, the Brazilian corncrop might drop only slightlyfrom last year’s 73 mmt; itcould end up just as large.

perspectives

FarmWeek Page 12 Monday, January 7, 2013

There are many types ofscales. Some are smallplate-like structuresthat form the externalcovering of fish or rep-

tiles. There are flakey scales, such as therust that forms on metal.

Another type is a series of tones inmusic. Others, such as the one in yourbathroom, are designed for weighing

things. There also are scales

in the world of insects— a fact that almostanyone who raisesplants for either fun orprofit can attest. That’sbecause scales of theinsect kind are majorplant pests.

Scale insects get theirname because the

immatures and females of manyspecies resemble fish scales. Through-out most of their life, female scaleinsects are wingless, and often legless. As you can probably guess, withoutlegs and wings these insects don’t goscampering around. They just sit anduse their piercing mouths to suck sapfrom plants.

Male scale insects are more insect-like than the females. The males dohave wings and resemble small gnats.Unlike the sap-sucking females, these

little male scale insects don’t feed. Infact, they don’t even have mouthparts.

Scale insect biology generally worksthis way. Newly hatched scale insectshave legs and are active. In this stage,they are known as crawlers and moveaway from their hatching site. Then,they molt, lose their legs, become sta-tionary and begin to form the waxysubstance that constitutes their scale-like covering.

When the female scale insectsmature into adults, they remain underthe scale. The males develop wings andleave the protective scale.

The males flutter about and matewith the females that are still concealedunder their protective scales. Thefemales produce their eggs under thescale. The eggs generally spend thewinter under the scale of the female.

Some scales are known as armoredscales, and this group includes somevery important pest species.

One is the San Jose scale. This pestwas introduced from the Orient. Itattacks trees and shrubs, and some-times kills the plants on which it feeds.

Another armored scale is called theoystershell scale because it looks likethe shell of an oyster. It, too, doesmajor damage to fruit and ornamentaltrees. Another scale in this group iscalled the pine needle scale. This scaleis found throughout the U.S., as anyone

who owns any pine trees cantell you.

The so-called soft scalesinclude a number ofinjurious species. Theblack scale, which is amajor pest of citrus, isone of the soft scales. Anotheris called the cottony maple scalebecause its primary host is maple trees.Several other species of this groupattack plants in homes and greenhous-es.

The insects known as mealybugsalso are scale insects. They get theirname because of the mealy wax thatcovers their bodies.

Like the other scale insects, themealybugs feed on plant species thatare ornamentals or fruits and, conse-quently, have not endeared themselvesto people who raise such species.

But all scale insects are not pests.Some are considered beneficial insects,such as the mostly tropical lac insects.

One of the lac insects is of com-mercial value. It grows on fig andbanyan (a tropical tree with aerial roots)in the Far East. The wax, or lac, pro-duced by the insect sometimes coatsthe twigs with a layer half an inch deep.

The twigs are cut, and the lac ismelted. The melted lac is used to makeshellac and varnishes.

Another scale insect for which

humans havefound a use isknown as the

cochineal insect. This insect resemblesthe mealybugs, except the females arered. It feeds on prickly pear cacti. Thefemales are removed from the cacti anddried. The red pigments are extractedfrom the dried bodies and used to pro-duce cochineal dye.

Another beneficial scale insect is thetamarisk manna scale. The femalesexcrete large quantities of honey dew,which accumulates on the plants, to forma sweet material called manna. This is thesame manna from heaven, which is men-tioned in the Bible, that the children ofIsrael used.

So, even if one or two species of thisgroup of plant-feeding insects are benefi-cial, the weight of the evidence implicatesmost scale insects as pests. Case closed!

Tom Turpin is an entomology professor at Pur-due University, West Lafayette, Ind. His emailaddress is turpin@purdue.edu.

Insect scales weighty matterfor both plants and growers

TOMTURPIN

The mayor of Newark, N.J., CoryBooker, went on food stamps for aweek. Big deal!

He has been on TV and interviewedby countless newspapers. Well, just forthe record, I went on food stampsmyself for a week 30 years ago while

serving as ag secretary. I wasn’t planning to

run for governor of Illi-nois. Mayor Booker hashis eye on a race forNew Jersey govenoragainst Gov. ChrisChristie in the next elec-tion.

The situation 30years ago was that Presi-dent Reagan had beenattacked repeatedly for

not caring about the poor, not spendingenough money on them.

I wanted to see if the food stampallotment was sufficient. After all, I wasag secretary and responsible for admin-istering the program.

So I went to the supermarket withthe correct amount of money to pur-chase my weekly food stamp allotment.

I bought eggs, milk, peas, carrots, hotdogs, bread, and I can’t remember whatelse. For a week, I ate my food-stampdiet. Nothing more.

I weighed myself when the weekstarted. I weighed myself when the weekwas over — 156 pounds, no change.

The next day was a three-mile run inWashington, D. C. I ran the race andthen conducted a pre-scheduled pressconference. The Washington presscouldn’t wait to jump on me.

All I told them was that “I feel fine. Ididn’t lose any weight. Food stamps arequite adequate. They aren’t supposed toprovide a gourmet feast. In most cases,they serve as a supplement to othersources of food. Keep in mind childrenhave school lunch. Some also haveschool breakfast.”

The press really didn’t like my evalua-tion of the food stamp program.

“One week is not a fair test,” theysaid. Needless to say, that press confer-ence was not a “love fest.”

Cory Booker’s food stamp weekcaught my eye, and I just wanted to letyou know that he was not the first pub-lic official to try out the program. I’msure I wasn’t, either.

John Block, former U.S. agriculture secretaryand a hog farmer from Gilson in Knox County,is a senior policy adviser with the Washington,D.C., firm of Olsson, Frank, Weeda, andTerman. His email address isjblock@ofwlaw.com.

What I learned from myfood stamp experience

JOHNBLOCK

“Yeah, I hurt that knee milking . . . I meanplaying linebacker for the Dallas Cowboys.”