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Monday, March 1, 2010 Two sections Volume 38, No. 9

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

BUNGE NORTH AMERICAplans to stop processing soybeans atits plant in Danville, but that shouldhave little impact on a neighboringbiodiesel plant. ..................................2

WITH THE APPARENT fail-ure of last week’s bipartisan healthcare “summit,” health debate is large-ly where it has been for two months— in the Senate’s court. ....................4

FARM BUREAU MEMBERSwere assured last week that the stateis sensitive to the need for railcrossings in rural areas as it devel-ops a high-speed rail system. ..........3

‘Signal’ from Obama sought to move Cuba reformsBY MARTIN ROSSFarmWeek

Advocates of expandedCuban trade and travel liberal-ization legislation are seekinga clear signal from the presi-dent and support from a fewkey lawmakers.

House Ag CommitteeChairman Collin Peterson (D-

legal claims registered againstCuba,” Anderson said. “TheCubans can lose a whole ship-ment after having paid for it.

They’re not going to buy underthose circumstances.”

In 2008, more than $134million in U.S. soy productswere exported to Cuba, but theAmerican Soybean Associationargues sales volume wouldincrease under Peterson’s pro-posal, given that U.S. supplierscan reach the three majorCuban ports “in a matter ofone day or less, compared to 25days from Brazil.”

LAWG is seeking a signalthat the president “is open to a

new day in our relationshipwith Cuba.” While some “tradi-tional hard-liners” remain vocalabout what they see as conces-

sions to Castro’s Cuba, especial-ly in south Florida, Andersonsees a shift among Cuban-Americans “toward engage-ment” with Cuba.

But she noted House For-eign Affairs Ranking Republi-can Rep. Ileana Ros-Lehtinen(R-Fla.) remains “one of theloud voices from Florida,” andher group hopes to garnersupport from committeemembers such as Illinois’Donald Manzullo, an EganRepublican.

Minn.) last week introduced ameasure aimed at expandingU.S. ag exports as well as travelto Cuba.

The bipartisan TravelRestriction Reform andExport Enhancement Act hasmore than 30 co-sponsors,including a scattering of Illi-nois congressmen.

The bill joins existing mea-sures confined to expandingallowable travel between theU.S. and the Communist nation.Through Peterson’s proposal,“the United States will be ableto export more food forCubans to eat,” according tothe Latin America WorkingGroup (LAWG).

Beyond basic “beans andchicken parts and rice,” U.S.farmers could sell to the under-producing nation, LAWGsenior associate Mavis Ander-son told FarmWeek, the mea-sure would help the U.S. carveout a high-value piece of anexpanding Cuban tourist trade.

The bill would allow fordirect payment for U.S. goodsbetween Cuban and U.S. banks,

rather than through a thirdcountry as is now required, thussaving fees to financial interme-diaries and time involved in

completing transactions andhelping make U.S. exports morecompetitive. And it wouldextend to Cuba the same “cash-in-advance” policies applied toall other U.S. trading partners.

Peterson seeks to allow pay-ment and title transfer for U.S.goods before they are offloadedin Cuba, rather than before theyare shipped.

“If title transfers whileproduct is still in a U.S. port, it’ssubject to being confiscated bypeople in the U.S. who have

‘Our mix of commodities and processed products,our ability to send bulk shipments down the Missis-sippi River to the Gulf of Mexico, and our willingnessto travel to Cuba to foster business and person-al relationships make this a worthwhile endeavor.’

— Philip NelsonIllinois Farm Bureau president, in a letter to Illinois congressional delegates supporting the Peterson bill

BY KAY SHIPMANFarmWeek

Positive projections for the livestock industrywere offered but fell through the rhetorical

cracks of a Pew Commissionreport on animal agriculture,according to an animal scientistwho spoke at last week’s Gov-ernmental Affairs LeadershipConference in Springfield.

Leonard Bull, a retired NorthCarolina State professor, wasone of four researchers whowrote a technical report on live-stock waste. That report and

seven others were written to supply scientificbackground information for a comprehensivereport sponsored by the Pew Charitable Trustsand Johns Hopkins Bloomberg School of PublicHealth.

However, the final report, “Putting Meat onthe Table: Industrial Farm Production in Ameri-ca,” included several controversial recommenda-

tions that weren’t based on information providedby the livestock waste report, Bull said.

That technical report is online at{www.ncifap.org/reports/}.

Instead, most of the final report’s recom-mendations focused on public health, includingseveral dealing with antibiotic use in livestockproduction, Bull said. Much of the report wasnegative toward animal agriculture.

“The Pew group is still active,” Bull said. Hespeculated some members have an agendaagainst large-scale commercial livestock produc-tion. For example, CBS anchor Katie Couricinterviewed a Pew representative about livestockproduction and antibiotic use, he noted.

Bull encouraged farmers to read the techni-cal reports, which contain valuable information,he said.

Bull said livestock production as it currentlyexists should not be expected to stop until per-fect solutions are found to address perceived

THE CHORES GO ON

No matter the weather, cattle feeding chores don’t stop for cattlemensuch as Tom Moser of rural Galena in Jo Daviess County. He has156 Angus cross cows and 150 feeder cattle that he must feed daily.He is hoping for 156 calves to be born this spring. Moser operatesa calf-to-finish operation in addition to growing corn and hay thathe uses for feed. He farms with help from his wife, Courtney, andhis father-in-law, Larry Lomax, a retired farmer. (Photo by KenKashian. Additional photos from Kashian’s trip last week to North-ern Illinois appear at {www.ilfb.org}. Click on Ken Kashian’s PhotoGallery.)

Scientist offers inside viewon Pew livestock report

Leonard Bull

See Scientist, page 3

S TA T E B U D G E T P R O P O S A L N O WONLINE — Gov. Pat Quinn posted general budgetinformation online last week, fulfilling a legislativer e q u i r e m e n t . T h e n e w b u d g e t w e b s i t e i s{www2.illinois.gov/budget/Pages/default.aspx}.Quinn was to have delivered his budget message onFeb. 17, but the General Assembly gave him untilMarch 10 as long as he posted general budget infor-mation online.

In the online posting, Quinn continued to proposean increase in the state income tax and advocatedcuts, especially in education funding, to address thestate’s nearly $13 billion deficit.

In addition to reviewing the proposed budget, thepublic may post comments online.

‘MIDWEST MADOFF’ RECEIVES SEN-TENCE — A Missouri woman last week was sen-tenced to nine years in prison after pleading guilty towhat reportedly was the largest agricultural fraud inthat state’s history.

Cathy Gieseker, 45, Martinsburg, Mo., swindled179 farmers out of more than $27 million, the St.Louis Post Dispatch reported. She pleaded guilty inNovember and last week in a St. Louis federal courtreceived her sentence — nine years in prison for asingle mail fraud charge.

Gieseker claimed to have a special arrangementwith Archer Daniels Midland that allowed her to bro-ker crops for premium prices. But officials said shehad no such deal and instead sold farmers’ grain andused a portion of the money to pay some of her ini-tial customers as part of a classic pyramid scheme.

District Judge Charles Shaw referred to her as the“Midwest Madoff,” in reference to Wall Street conman Bernie Madoff who stole billions from investorsin what has been described as the largest Ponzischeme in U.S. history.

DISASTER AID COMING? — The Congres-sional Budget Office Friday was “scoring” the poten-tial impact of an ag disaster assistance plan underconsideration for a major Senate package possibly upfor debate this week.

The bill, a follow-up to initial Senate jobs legisla-tion, is expected to include a number of federal tax“extenders,” possibly including the recently expiredbiodiesel blenders tax credit.

The package also may offer disaster aid to produc-ers affected by last year’s adverse weather conditionsand late harvest.

FarmWeek Monday, March 1, 2010

(ISSN0197-6680)

Vol. 38 No. 9 March 1, 2010

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

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STAFFEditor

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Quick TakesMARKETS

Congress’ inaction, not Bungeshutdown, threatens operationBY MARTIN ROSSFarmWeek

While Bunge’s soy crushing facility originallywas a key factor in siting a Danville biodieselplant, diversification will help Blackhawk Biofu-els weather Bunge’s downsizing.

However, congressional inaction jeopardizesthe biodiesel operation, its 30 employees, and itscontribution to the East Central Illinois commu-nity.

Blackhawk plant manager Bruce Lutes toldFarmWeek his 45-million-gallon-per-year facili-ty currently is producing fuel almost exclusivelywith animal fat because of higher soy oil costs.

Thus, while Bunge’s shutdown announcementis “not a good thing” for Vermilion County pro-ducers and the area economy, Lutes reported itdoes not affect ongoing Blackhawk operations.

Of greater concern to Lutes is Congress’continued failure to extend the $1-per-gallonfederal biodiesel blenders credit, which expiredJan. 1.

Senate Majority Leader Harry Reid (D-Nev.)recently bumped the credit’s extension fromSenate jobs legislation — a move that frustratesLutes, who sees his industry “caught up in polit-ical posturing.”

“There are 29,000 (nationwide biodiesel) jobsat stake — all they have to do is sign this onebill, and it’s fixed today,” Lutes emphasized. “It’shard for us in the biodiesel industry to under-stand why this shouldn’t be in the jobs bill.We’re hoping to weather this storm, but we real-ly need the help of our legislators.”

The biodiesel credit is included in a tax“extenders” package pushed by SenateFinance Chairman Max Baucus (D-Mont.)and ranking committee Republican ChuckGrassley (R-Iowa). Debate over extenderslegislation was expected to begin this week,but Reid reportedly continues to resist

including the biodiesel credit.The Blackhawk plant, upgraded in 2009 to

treat and process a wider variety of biofuels, cannow operate on livestock fats, non-soy vegetableoils, and waste cooking grease. Blackhawk is get-ting animal fat from a variety of sources within aroughly 200-mile radius.

The Danville operation markets three majorbiodiesel products based on fuel attributesrather than feedstock.

The biodiesel tax credit originally provided fuelsuppliers a $1-per-gallon break for blending “vir-gin” soy oil and a reduced credit for diesel fuelblended with waste grease or other feedstocks.

Research and technology since have yieldedseveral viable biodiesel sources, and Congressexpanded the $1 credit to all feedstocks.

Blackhawk eventually may restore soy oil toits feedstock mix, “if the market indicates it’sthe right thing to do,” Lutes said.

Bunge to stop processingsoybeans at Danville plant

Bunge North America announced lastweek it plans to stop processing soybeans atits plant in Danville.

The move will become effective on April23, the Associated Press (AP) reported.

St. Louis-based Bunge reportedly will stopusing the Eastern Illinois facility for soybeansbecause the industry has excess processingcapacity.

The closure is permanent and will result inthe loss of about 100 jobs, a companyspokesperson said.

Bunge’s corn mill will remain open, andfarmers reportedly will be able to continue todeliver soybeans to the Danville facility fortransport to other locations.

REQUESTING ACTION

Illinois Farm Bureau Director Darryl Brinkmann, right, helps Williamson County Farm Bureau leaderDuane Wittenborg send online comments about proposed spray drift rules to the Environmental Pro-tection Agency. Participants of the Governmental Affairs Leadership Conference had the opportunityto complete IFB action requests during the conference. (Photo by Kay Shipman)

STATE


ADOPTED LEGISLATOR CHAT

State Sen. William Delgado (D-Chicago), fourth from left, chats with leaders of the Gallatin CountyFarm Bureau and Saline County Farm Bureau during an Illinois Farm Bureau reception for legislatorslast week in Springfield. The county Farm Bureaus “adopted” Delgado through IFB’s Adopt-a-Legisla-tor Program. More than 70 state lawmakers met with Farm Bureau leaders during the event, held inconjunction with the Governmental Affairs Leadership Conference. (Photo by Kay Shipman)

GALC offers crash course on environmental issuesatrazine in drinking water isunsafe. Flakne warned lawyersinvolved with that case havesought to involve other towns inthe legal action.

Last week, Holiday Shores’attorneys asked a MadisonCounty circuit judge to dismissseveral claims from the lawsuit.The plaintiffs’ legal theoriescontinue to be whittled down,explained Kurtis Reeg, an attor-ney for Syngenta.

Florida and water nutrientstandards: EPA has proposedsetting specific number stan-dards for nitrogen, phospho-rous, and other nutrients inFlorida lakes, rivers, streams, andsprings. Under those standards,

35 percent of Florida’s mostpristine streams would be con-sidered impaired, and agriculturewould shoulder a heavy cost toaddress the proposed standards,according to Parrish. EPA isexpected to announce standardsby January 2011.

Parrish cautioned the Floridaprocess may be attempted inother states. Environmentalistsrecently threatened to sue EPAif the agency doesn’t set nutrientcriteria for Wisconsin bodies ofwater.

Parrish urged Farm Bureaumembers to stay involved inlocal water quality efforts and tostay informed on proposed rulesand standards.

National Cotton Councilcase and pesticide regula-tions: Last week, the U.S.Supreme Court declined toreview the ruling of NationalCotton Council vs. EPA. Thatmay have repercussions for pes-ticide regulations across thecountry, according to Parrish.

The U.S. Sixth Circuit Courtof Appeals ruled National Pollu-tant Discharge Elimination Sys-tem (NPDES) permits should berequired for pesticide applica-tions directly to water, overwater, or “near” water. “We(AFBF) are working with EPAon what the permit will looklike,” Parrish said. — Kay Ship-man

Input costs and prices won’tbe the only challenges facing Illi-nois farmers this year. Severalenvironmental issues mayimpact farming practices orfarming operations, FarmBureau members heard at lastweek’s Illinois Farm BureauGovernmental Affairs Leader-ship Conference in Springfield.

“It’s lead-pipe serious,”warned Don Parrish, seniordirector of regulatory relationswith the American Farm BureauFederation (AFBF), of the envi-ronmental issues facing farmers.

Those issues were the focusof a general session and severalworkshops. The summary belowis a sampling of some of thechallenges farmers face:

Chesapeake Bay and totalmaximum daily loads: Cur-rently, states have the authorityto set and implement water qual-ity standards and to balance theneeds of all water uses withimplementation costs.

In the Chesapeake Bay area,U.S. Environmental ProtectionAgency (EPA) Region 3 isattempting to coerce bay-areastates into setting new waterstandards by threatening to stopissuing new permits for new

water uses or expansion ofexisting ones, according to Par-rish. Without the permits, eco-nomic development would cometo a halt, he explained. AFBF isconcerned action in the Chesa-peake Bay could set a precedentfor water bodies elsewhere.

Atrazine and EPA’s re-re-evaluation: EPA is moving for-ward with a “re-re-evaluation”of the safety of atrazine. “Thereis no new science since 2006,and we’re confident if thisprocess sticks to the science, it(atrazine) will be re-registered,”said David Flakne, senior stategovernment relations managerwith Syngenta.

However, activists continueto expand on theories that havebeen refuted by scientific stud-ies, Flakne said. For example,last week the Illinois HouseEnvironmental Health Commit-tee heard from Tyrone Hayes, aUniversity of California Berke-ley professor who claimedatrazine alters development infrogs, a theory that has beenrefuted by science.

Meanwhile, a lawsuit onbehalf of the Holiday Shoressanitary district in MadisonCounty claims any detection of

Illinois sits in transportation catbird seat BY KAY SHIPMANFarmWeek

Illinois holds an enviable spotin U.S. transportation. It boastsgreat air, waterway, and highwaysystems. And throw into the mixa president and U.S. secretary oftransportation who call Illinoishome.

“IDOT (Illinois Departmentof Transportation) actually islooking at a bright future withtransportation infrastructure.

“It’s an opportunity to make a

difference and to make sure Illi-nois is able to compete,” IllinoisSecretary of TransportationGary Hannig told Farm Bureaumembers at last week’s Govern-mental Affairs Leadership Con-

ference in Springfield.Hannig went through a laun-

dry list of infrastructure projectsmade possible because the Illi-nois legislature passed a capitalbill last year.

The transportation pinnaclewill be development of a high-speed rail line between Chicagoand St. Louis developed with$1.23 billion in federal stimulusfunds.

Hannig assured Farm Bureaumembers he is sensitive aboutthe need for rail crossings forbusiness and emergency servicesin rural areas. “The federal gov-ernment is trying not to close alot of crossings,” he said.

Illinois has successfully testedcrossing arms that preventmotorists from crossing trackswhen the arms are lowered, henoted. “We don’t see a signifi-cant need to close (crossings).Most of the talk is making cross-ings safer in small towns,” Han-nig added.

Mike Garcia, IDOT chief ofrail engineering, outlined thestate’s current plans to develophigh-speed rail. In many cases,the track will stay in the samelocation, but new concrete tiesand steel rails will be added, hesaid.

The state will seek develop-ment of a computerized signaland communication systembetween trains and between

trains and crossings, Garcia not-ed. “We don’t want trains to runinto each other,” he said.

Likewise, the state will givespecial attention to crossinggates to prevent vehicles fromgetting onto the tracks when thegates are lowered and any vehiclealready on the track frombecoming trapped, according toGarcia.

Illinois also will design thehigh-speed trains. “What theywill look like has yet to be deter-mined,” Garcia said. The state’splan includes six train sets, eachcomprised of two locomotivesand five cars.

Improved rail stations andfacilities will be another compo-nent of the high-speed rail pro-ject and are necessary to attractenough passengers to supportthe system, Garcia noted.

“Our goal is a sustainablesystem. Anybody can build it,but we have to be sure it runson and on,” Garcia said.

Illinois Secretary of Transportation Gary Hannig, center, discusses possibleimpacts of high-speed rail on rural crossings with Illinois Farm Bureau di-rectors Dale Hadden, left, and Jim Schielein. (Photo by Kay Shipman)

Continued from page 1 problems, although the stop-production view is advocated by severalactivist groups.

He compared the livestock industry’s situation to changes thatoccurred in the use of leaded gasoline. Society applied incrementalchanges until a process was developed to address the problem. Peo-ple didn’t just park their cars and walk or ride bikes, Bull quipped.

“Some activist groups have a different agenda,” Bull comment-ed. “They say, ‘If you (animal agriculture) can’t do it right, thenstop doing it until you can.’ ”

“I don’t think it’s in the nation’s best interest to now expect ani-mal agriculture is going to shoulder the cost to change directionon its own,” Bull said.

Scientist

FarmWeekNow.comVisit FarmWeekNow.com tolearn more about the IllinoisDepartment of Transporta-tion’s new projects.

GOVERNMENT


Health summit flounders; reconciliation next?BY MARTIN ROSSFarmWeek

Amid apparent failure of lastweek’s bipartisan health care“summit,” health debate islargely where it has been for twomonths — in the Senate’s court.

Senate Democrats thusmay attempt to pull a dramaticplay out of the congressionalrule book — one that bypass-es opposition to sweepingchanges in health care andcoverage.

That’s according to Ameri-can Farm Bureau Federationpolicy analyst Pat Wolff. Wolfflargely dismissed a new 11-page White House health“plan” issued last week, char-acterizing it largely as “moreof the same.”

“It’s pretty hard to take an11-page summary and com-pare it to a 2,000-page bill and

port, and Wolff termed theDemocrat threat “a big gameof chicken.”

“You could say the

Medicare tax increase definite-ly has a budget impact, so it’seligible for a reconciliationvote,” she explained. “Require-ments for insurance compa-nies have no impact on thefederal budget.”

According to Wolff, recon-

ciliation likely would result in“a huge mess” — a disjointedhealth care plan without anumber of key reforms.Beyond more controversialprimary proposals, the Senateplan includes proposals to bol-ster rural medical education,reduce Medicare disparitiesbetween regions and urbanand rural areas, and improveMedicare reimbursements forrural retail pharmacies.

Meanwhile, President Oba-ma threatened to regulateinsurance premium increases— a reported response to Cal-ifornia insurers who raisedsome health premiums by asmuch as 300 percent.

Wolff acknowledged a capon premiums would impactrural providers, but questionedwhether Obama could carrythrough with that threat.

make connections,” she toldFarmWeek.

She said the plan was“almost word-for-word what(House Speaker) Nancy Pelosiand (Senate Majority Leader)Harry Reid agreed to”: existingSenate legislation, but withoutprovisions to tax high-income“Cadillac” health coverageplans as earlier proposed andwith an increase in Medicaretaxes as a substitute fundingmechanism.

The president’s push, just afew days before a televisedhealth care discussion betweenObama and 40 Democrat andRepublican lawmakers lastweek, appeared to spark fur-ther bipartisan division.

Sen. Lamar Alexander (R.-Tenn.) argued health care “is acar that can’t be recalled andfixed,“ and Pelosi was “not

overly optimistic” the two par-ties could reach a mutuallyacceptable compromise.

That leaves some Democ-

rats eyeing the option of “rec-onciliation” — a congressionalmaneuver that permits a mere50-vote Senate “majority” toapprove budget-related mea-sures. Reconciliation enablesone party to move key legisla-tion without bipartisan sup-

‘ I t ’s pret ty hard to take an 11-pagesummary and compare it to a 2,000-page bill.’

— Pat WolffAmerican Farm Bureau Federation

Can new technologies help cellulosic catch up?Amid rapid advancements

in technology needed toextract fuel from fiber, cellu-losic ethanol could be on theground — and in tanks —sooner than currently is pro-jected.

And from industry indica-tions, corn again is likely tolead the way in developmentof next-generation biofuels.Steen Risgaard, CEO of keyethanol technology providerNovozymes, told Farm-Week corn residues are “anobvious place to start” intapping fiber-based sugarsfor fuel alcohol.

Novozymes has unveiledCellic CTec2, enzymes capableof breaking down tough cellu-losic material from a variety offeedstocks — including cropresidues, sugar cane wastes,wood chips, and switchgrass.

Risgaard projects the newtechnology could bring pro-duction costs down to $2 pergallon, on a competitive parwith starch-based ethanol andgasoline.

Novozymes is partnering

speed growth. “Lighthouse,” aPennsylvania demonstrationproject, is expected to produce100-plus gallons of ethanolper ton of biomass. Accordingto Bolen, that includes anybiomass, such as cobs, munici-pal wastes, or a mix of “car-bon.”

A planned Southeast U.S.followup, Project Flagship, willtap 1-1.2 million “green tons”of wood biomass annually.Because it is feedstock neutraland blendable, Bolen sees theprocess integrating with exist-ing corn-based plants or reviv-ing flagging pulp paper opera-

tions or sugar mills.The excess steam produced

with gasification should helpreduce natural gas use in pro-duction and thus help biomassethanol “compete head-to-head with gasoline,” he said.

“It’s time to start building— it’s not three years, it’s notfive years,” Coskata’s chiefmanagement officer said.

“We’re not waiting for any-thing anymore. We’re licensingthis technology (to other com-panies) to make a big impact.We can meet and exceed the36 billion gallons the RFS2calls for.” — Martin Ross

with a number of diverse com-panies to employ CellicCTEC2, including Iowa-basedPoet, the nation’s mostadvanced cellulosic developer,with plans to launch full-scalecob-based production by late2011.

The federal renewable fuelsstandard (RFS2) directs 36 bil-lion gallons of biofuels use by2022, including roughly 21 bil-lion gallons of anticipated“advanced biofuels” from cel-lulosic and other non-corn-starch sources.

However, amid recent chal-lenges to new biofuels invest-ment and startups, the U.S.Environmental ProtectionAgency (EPA) scaled down its2010 cellulosic targets from aninitially prescribed 100 milliongallons to a mere 6.5 milliongallons.

EPA acting transporta-tion/climate director SarahDunham is optimistic “thevolumes will come up” after2012 as industry developmentsand biofuels policy foster“more certainty for invest-ment.”

Risgaard sees processingadvances “creating momentumfor large-scale deployment ofcellulosics to fulfill ambitionsunder the renewable fuelsstandard.”

“EPA’s ruling reflects thatright now, the industry as awhole is a couple of yearsbehind schedule,” he said.“But we can scramble andwithin three to five years getback on the originally project-ed growth track for cellu-losics.”

Over the past two years,advances by Novozymes andother companies have reduced

the previously prohibitive costof cellulosic enzymes by 80percent — Cellic CTec2 costsan estimated 50 cents per gal-lon of ethanol.

Novozymes continues todevelop new enzymes for theconventional industry that Ris-gaard said will make “the eco-nomics of corn-based (pro-duction) even better than it istoday.”

Wes Bolen of Warrenville-based Coskata Inc. argues hiscompany’s approach to cellu-losics, gasification of biomassand conversion of resulting“syngas” into fuel, will greatly

Feedstock of the future: Groundcorn cobs, shown here, couldprovide a significant step forwardfor cellulosic ethanol developmenta n d a w a y t o i m p r o v e c o r nethanol’s perceived carbon foot-p r i n t . ( P h o t o c o u r t e s y o fNovozymes)

A New York biofuels company sees whole-corn ethanol as a way to bring cellulosic bio-fuels to fruition and address costly logisticsconfronting prospective biomass producers.

Working with Cornell University, SweetWa-ter Energy is exploring the potential of “ener-gy sorghum,” which grows to 14 feet inupstate New York. The company also is takingon the entire corn plant — grain, cobs, andstalks.

Rather than transporting and/or storingbulky crop residues at remote ethanol facili-ties, Sweetwater’s patented system extracts aconcentrated “sugar water” at the farm levelfor delivery to a “biorefiner.”

Beyond reducing potential cellulosic costs,Sweetwater CEO Jack Baron sees whole-cornproduction helping significantly reduce theethanol industry’s carbon footprint, a key fac-tor in federal renewable fuels standards.

“This is working extraordinarily well,” hetold FarmWeek. “It’s a lot about supplychain logistics. We take a tremendous amountof the energy out of the front end of thesupply chain and thereby take a lot of thecosts out.

“And we play in both the starch-based andthe cellulosic worlds. We’re taking twice asmuch sugar out of each acre of corn with our

process, which makes corn a different (ener-gy) crop than it’s been historically.

“If, in fact, you suddenly have half therequirement in terms of corn land in order toproduce corn ethanol, it changes the debatesignificantly.”

Mindful of its carbon footprint, SweetWa-ter is incorporating corn stover back into itstest acres — an important factor for heavyno-till, low-till states such as Illinois.

Baron estimates his process offers an 80percent decrease in potential transportationcosts and a two-thirds reduction in ethanolrefining costs at the plant. By delivering sugarwater to the processor, SweetWater skips to“step seven” of the normal 12-step dry grindcorn ethanol production process, he said.

SweetWater’s ethanol co-product — anoth-er essential component in industry economics— remains on the farms, with roughly a thirdof the biomass converted into a high-fiberlivestock ration in combination with distillersdried grains (DDGs).

“DDGs are a component we buy backfrom other biorefiners — we’re in the marketas a DDG acquirer,” Baron related. “Ourproduct is extremely good for dairy cattle andfor beef cattle, and we’re working a little withgestating sows now.” — Martin Ross

Whole-corn ethanol fuel of the future?

ENERGY


California regulations back door for Brazilian ethanol?BY MARTIN ROSSFarmWeek

Domestic ethanol interestscontinue their legal assault onnew California air regulationsthat could, according toRenewable Fuels Association(RFA) President Bob Din-neen, provide the backdoorfor a West Coast glut ofSouth American imports.

California’s low-carbon fuelstandard and its underlyingemphasis on biofuels green-house gas (GHG) emissionsand the theoretical impact ofglobal land use change onthem offers Brazilian sugarcane ethanol a “mysteriouscarbon benefit” while penaliz-ing Midwest ethanol, Dinneensaid.

Ethanol interests have filedsuit against California, charg-ing the standard is unconstitu-tional and discriminatory.

In drafting the standard, theCalifornia Air RegulatoryBoard (CARB) allegedlyimposed more stringent GHGcriteria on corn ethanol thanfor other alternative sources.

At the same time, officialsscored sugar cane ethanol sig-nificantly higher in reducingGHG impact. Under CARBregulations, Brazilian ethanolappears to be California’s topoption for meeting both feder-al targets and state biofuelsrequirements.

By “erecting a ‘No Midwestethanol’ sign at the border,”California is attempting to reg-ulate “how renewable fuels canbe produced in other states,”Dinneen argued.

“Apparently, there’s a bigcarbon impact because we haveto ship our ethanol all the wayfrom Illinois to California,” hetold FarmWeek. “It seems to

me that Brazil is even fartheraway. But somehow, they’reable to get their ethanol to Cali-fornia without a carbon penal-ty.

“And there’s a penalty forshipping ethanol to Californiabut apparently none for ship-ping corn to process intoethanol there. There are allkinds of inconsistencies andquestionable assumptions intheir analysis.”

Illinois Farm Bureau econo-mist Mike Doherty notes a“longstanding relationship”between Brazil and California.Brazilian envoys have con-ferred with state officials sinceat least 2001, “looking for theiropportunity to import Brazil-ian ethanol into this huge mar-ket,” Doherty said.

RFA also seeks continuationof a federal ethanol tax creditset to expire at year’s end and a54-cent-per-gallon tariff on

imported ethanol. U.S. fuel suppliers receive

the credit whether they blendU.S. or imported ethanol, andthe tariff exists “not to protectthe (U.S. ethanol) industry butto protect the U.S. Treasury,”which otherwise would “sud-denly be subsidizing Braziliansugar,” Dinneen said.

Brazil already has a backdoor for ethanol through theCaribbean Basin Initiative(CBI), a U.S. treaty that permitstariff-free importation ofethanol from the Caribbean, upto 7 percent of annual U.S.production.

Brazil currently ships dehy-drated ethanol through theCaribbean for reconstitutionand legal duty-free shipment tothe mainland.

CBI limits may seem mea-ger, but U.S. production haspassed 10.5 billion gallons.Brazil’s ability to reach a 7 per-cent threshold thus could fulfillCalifornia’s prospective biofu-els demand under low-carbonstandards or even establish abeachhead for expanded mar-ket entry, Doherty suggested.

“They’re going to build rela-tionships and shipping con-tacts,” he emphasized.

“There are efficiencies to begained in maintaining thoserelationships.

“There are some pretty bigGulf of Mexico markets forethanol, and under certain mar-ket conditions, there are pointswhere it becomes break-evento bring (ethanol) in duty-freethrough the Port of Galve-ston.”

South America’sethanol exportpotential uncertain

Brazilian Sugarcane Industry Association North Americanrepresentative Joel Velasco dismisses the notion that “Brazil’sgoing to flood the U.S. with ethanol.” He noted that estimatedannual U.S. production capacity is more than double Brazil’s.

He questions a U.S. ethanol import tariff (see accompanyingstory) that in his view “imposes a penalty on clean energy inthe case of sugar cane ethanol, but says to oil producers, ‘Youroil comes in duty-free.’ ”

While Velasco acknowledges the sugar industry’s desire tobuild exports, he sees a “huge domestic market” continuing toconsume much of Brazil’s ethanol production. Brazil has man-dated 20-25 percent ethanol use, most recently dropping theblend level to 20 percent to address sugar supply issues.

“In an average year, Brazil has been exporting maybe 500million gallons of ethanol,” Velasco told FarmWeek. “Peoplemake a big deal out of the export market, but it’s usually lessthan 10 percent of its production.

“This last year, we produced about 6-6.5 billion gallons ofethanol in Brazil. This coming year, we’ll probably produce 8million or so. The U.S. this year may actually export someethanol to Brazil, and that’s a good thing.”

Velasco nonetheless argues that, long-term, Brazil will offer“a far more competitive product”: “We make a $1-a-gallon fuelday-in/day-out, and we only think it’s going lower.”

Illinois Farm Bureau economist Mike Doherty pegs tightBrazilian supplies to a shift of recently high-priced sugartoward food use. But Doherty see that as a temporary situa-tion.

Velasco cited Brazilian regulations limiting cane productionto only 7 percent of the country’s total land mass. Currently,however, he estimates only 1 percent of available land is beingused to raise sugar.

Unlike the corn ethanol industry, Brazilian processors canbypass feedstock pretreatment necessary to convert starch tofermentable sugars.

Given the nation’s existing sugar mills, Doherty sees long-term potential for expanded cane ethanol production with rela-tively modest new construction. — Martin Ross

‘ T h e r e a r e a l lkinds of inconsis-tencies and ques-tionable assump-tions in (Califor-nia’s) analysis.’

— Bob DinneenRenewable Fuels Association

Ethanol growth to have little impact on food pricesBY DANIEL GRANTFarmWeek

Food price inflation wasprojected to revert to a “nor-mal” range this year afterexhibiting wild swings in2008 and 2009.

Ephraim Leibtag, econo-mist with the USDA Eco-nomic Research Service, lastmonth projected food priceinflation this year could aver-age between 2.5 percent and3.5 percent.

That would fall in line withfood price inflation the pastdecade, which averaged 2.9percent on an annual basis.

“The assumption is animproved economy will leadto more normal (food price)inflation,” Leibtag said lastmonth at the USDA Ag Out-look Forum.

It would be a big changefrom the previous twoyears when the consumerprice index for foodjumped by a decade-high

aspects of food produc-tion.”

Ethanol productionplayed a much less signifi-

cant role in food price infla-tion in 2008 than previouslyreported, according toUrbanchuk, and should havea minimal impact on foodprices this year.

USDA projected theethanol industry will consumean additional 130 million

bushels of corn annuallybetween 2010 and 2014. Butthe price of corn this year isprojected to average around$3.60 per bushel as stocksremain ample.

“What happens to com-modity (grain) prices is mean-ingful, but it does not domi-nate what happens to retailfood prices,” Urbanchuk said.By contrast “energy hasroughly twice the impact ascommodities on food prices.”

Leibtag agreed, saying,“The farm price is less thanone-fifth of the cost of food,so it doesn’t have much of animpact.”

The chance of higher foodinflation this year comparedto last year’s decade-low,therefore, is based on predic-tions of economic recoveryand strong oil prices, whichlast week hovered around $80per barrel compared to $44per barrel during the sametime last year.

5.5 percent in 2008 beforesinking to a 10-year low of1.8 percent last year duringthe recession.

“The last several years real-ly have been dynamic,” saidJohn Urbanchuk, economistand technical director of theconsulting firm Entrix. “Foodprices have been on a rollercoaster ride.”

The unusual dip in foodprice inflation last yearmostly was the result of low-er demand due to the reces-sion, according to the econ-omists.

Leibtag believes increasedcompetition in the retailfood sector also could limitfood price inflation. Lastyear about 40 percent offood in the U.S. was pur-chased outside of traditionalgrocery stores.

Leibtag predicted by 2012more than half of all foodwill be purchased at non-traditional grocery stores

such as Wal-Mart.Meanwhile, the massive

run-up in food prices in2008 mostly was due to a

commodity price bubbleand more specificallyrecord-high oil and energyprices, according toUrbanchuk.

“Oil prices drove retailfood prices (in 2008),”Urbanchuk said. “Energy isimbedded in virtually all

‘Energy is imbedded in virtually all as-pects of food production.’

— John UrbanchukEntrix

TRADE


China expected to remain large ag importer BY DANIEL GRANTFarmWeek

A ferocious appetite inChina has been largely credit-ed with the record pace ofU.S. soybean exports, which isprojected to reach 1.4 billionbushels for the current mar-keting year.

But while the rate of U.S.soybean exports could slowthis spring as competitionfrom South America heats up,the overall trend in China is

service industry will be largerthan its U.S. counterpart by2012.

“These are the peoplewho really are looking to buyour products,” Latner said.“As incomes rise, the Chi-nese eat more and more highquality, premium productsand a lot more food awayfrom home.”

China has attempted tobecome more self sufficientin food production by imple-menting practices such asmulti-cropping, inter-crop-ping, intensive use of green-house systems, and a sharpincrease in the use of mecha-nization, according to FredGale, senior economist withUSDA ERS.

But “there are signsthey’ve gone beyond sustain-ability,” Gale said of the Chi-nese. “They will need to rely

more in imports.”Fertilizer use in China has

increased by about 81 percentsince the 1990s.

Meanwhile, livestock inChina currently total about4.8 billion poultry (twice asmuch as the U.S.), 419 millionhogs (about six times asmuch as the U.S.), and 105million cattle (nearly 10 mil-lion head larger than the U.S.herd).

“They have a large live-stock population on a smalland fixed land base,” Galesaid. “Their resources arebeing drawn down to sup-port this level of produc-tion.”

China currently possessesabout 9 percent of the arableland in the world but is hometo 22 percent of the world’spopulation (1.3 billion peo-ple).

expected to remain the same.“There really are two

views about China,” saidKevin Latner, director ofthe USDA EconomicResearch Service (ERS)agricultural trade office inChengdu, China.

“One is it’s a great marketopportunity, while the other isit’s a great competitor that’sgoing to eat our lunch.”

So which is it?“I think (China) will con-

tinue to be an export oppor-tunity,” Latner said recentlyat the USDA Ag OutlookForum. “Chinese consumersare increasingly affluentand, as we’ve seen in the soymarket, the U.S. is competi-tive.”

China’s upper-middleincome population is project-ed to increase from 30 per-cent in 2015 to 75 percent by2025, said Latner, who alsoprojected the Chinese food

Davenport to play hostto ‘Gathering of the Green’

Davenport, Iowa, will be the place to be this month forantique John Deere tractor enthusiasts.

The sixth “Gathering of the Green” conference will beMarch 17 to 20 at the River Center in Davenport, which is justacross the Mississippi River from Moline.

The convention-style conference will feature John Deereantique two-cylinder and New Generation tractors and imple-ments.

Vendors at the event will offer services for new and usedequipment, reproduction parts, manuals, books, tires, signs, JDdecals, art, clothing, and memorabilia. There also will be work-shops, evening speakers, and an auction.

On-site registration is $35 per person for all four days of theconference or $10 per day.

For more information, visit the website{www.gatheringofthegreen.com}, call Gathering Information at815-246-4121, or call Ken Reese at 815-578-8635.

ENOUGH, ALREADY

Snowfall always makes for pretty scenery, especially in Jo Daviess County, but with the turn of the cal-endar to March, let’s hope further scenic snow pictures can wait until next winter. The Jo DaviessCounty farmstead in the background here was purchased by relatives of Tom Moser in the early1900s. Moser, who formerly was a contractor, is in the process of restoring the farmhouse and hopesto move his family into it in about a year. (Photo by Ken Kashian)

‘ There rea l l y a re two v iews abou tChina.’

— Kevin LatnerUSDA Economic Research Service

TRADE


Industry leader sees U.S. livestock sector growthBY DANIEL GRANTFarmWeek

JBS SA, the world’s largestproducer and exporter of beef,got its start in Brazil.

But much of the futuregrowth for the company likely willbe in the U.S., according to WesleyBatista, CEO of JBS USA.

“The dynamics havechanged and we believe theU.S. will be a strong platform”to expand operations, saidBatista, who was a featuredspeaker last month at the

The U.S. market has its ownchallenges, though. Batistaurged the U.S. government tofully open international marketsand to limit burdensome regu-lations and taxes on the live-stock industry.

He also believes it’s impor-tant for producers to be ableto take advantage of new tech-nologies and efficiencies tofeed the world’s growing pop-ulation, which is projected to

USDA Ag Outlook Forum inArlington, Va.

JBS since 2007 acquired Swift& Co., purchased a majority inter-est in poultry giant Pilgrim’s Pride,and more recently purchasedSmithfield Beef and its feedlotoperations known as Five Rivers.

The company’s five-yearplan is to build up its distribu-tion capabilities so its livestock-based products can be deliveredcloser to end-users and con-sumers, according to Batista.

JBS USA currently has the

capacity to process more than65,000 head of cattle and morethan 45,000 head of hogs perday. It is the third-largest porkproducer in the U.S.

Why is JBS focused on grow-ing its business in the U.S. at atime when the livestock industryis coming off two years of loss-es and when there is mountingpressure from activist groups?

“We believe the demand forprotein will increase worldwide,”Batista said. “We know that whenpeople leave poverty and enterthe middle class, their demandfor animal protein will increase.”

And U.S. farmers can supplythe livestock with safe and amplesupplies of feed, Batista said.

Meanwhile, increased regula-tions in Europe and competitionfor land in South America havereduced beef output in bothlocations, according to Batista.

JBS has a policy of not pur-chasing cattle from farmersinvolved in deforestation ofthe Amazon rainforest inBrazil, Batista said. Pastureground, therefore, is harder toobtain in Brazil as more land isconverted to crop production.

U.S. Trade Representative Ron Kirk, left, discusses ag trade with Ag Sec-retary Tom Vilsack at the USDA Ag Outlook Forum. Vilsack identified ex-panding markets overseas as one of six steps to help improve priceprospects for farmers and to improve the overall economy. Kirk, mean-while, said expanding ag trade is a critical part of President Obama’sgoal to double exports within the next five years. (Photo by Daniel Grant)

Ag export reboundprojected in 2010

U.S. ag exports are expected to bounce back this year as eco-nomic conditions gradually improve around the world.

USDA last month revised its projection upward for fiscal year2010 ag exports by an additional $2 billion. The current projectionfor U.S. ag exports this year, $100 billion, is $3.4 billion above 2009.

“That (export projection) to me is rather astounding,” said JimMiller, USDA under secretary for the Foreign Agricultural Service,during the USDA Ag Outlook Forum. “It would be the second-highest level” on record, he said.

Soybean shipments are leading the recovery in exports, accord-ing to Miller. U.S. soy exports, which are being driven by Chinesedemand, are projected to reach a record 1.4 billion bushels.

Meanwhile, U.S. beef and pork exports are projected to increase9 percent in 2010, USDA projected.

“We’re beginning to see recovery of the domestic economy andthe global economy,” Miller said. “That’s extremely important for ag.”

The U.S. gross domestic product (GDP) was projected to growthis year by as much as 3.3 percent, although the labor market isexpected to stagnate with unemployment at about 10 percent.

“Exports suffered during the global downturn, but they’re start-ing to grow again,” said Ron Kirk, U.S. Trade Representative.

The expansion of U.S. exports is a key part of the Obamaadministration’s effort to improve economic conditions, Kirk said.The National Export Initiative recently unveiled by Obama aims todouble U.S. exports within the next five years.

The initiative could create 2 million jobs in the U.S., Kirk said.“That is part of the overall strategy to put America back to

work,” Kirk said. “And agriculture is a critical component ofAmerica’s export and trade policy.”

Kirk said his office will continue to try to improve access tomarkets and also will place a greater emphasis on the enforcementof existing trade policies to ensure a “level playing field” for U.S.exporters.

“Made in America and raised in America still means something,”he said. “If we level the playing field, our farmers and ranchers cancompete anywhere in the world.”

Meanwhile, imports of ag products this year were projected toclimb $4 billion to a total of $77.5 billion.

“The surplus (of $22.5 billion in ag trade in the U.S.) not only isimportant to agriculture but also the general economy,” Miller added.— Daniel Grant

jump from 6.8 billion to 9 bil-lion people by 2050.

“We must come togetherwith producers to confront thechallenges in front of us,”Batista said.

The success of JBS and thelivestock industry also isextremely important to cropproducers. JBS currently con-sumes 5 percent of the U.S.corn crop and 2 million tons ofsoybean meal each year.

STATE


Horse judges seminarplanned for April 17

The annual Illinois State Horse Judges Seminar will befrom 8 a.m. to 5 p.m. April 17 at the University of Illinois.

Registration and classroom instruction will begin in theAnimal Science Lab, Room 150, 1207 W. Gregory Drive,Urbana. Additional classes will be held in the U of I StockPavilion.

The seminar is open to all youth and open horse showjudges, potential judges, exhibitors, and horse event specta-tors.

The goal is to encourage uniform standards for judging andexhibiting horses at Illinois horse shows and to develop adirectory of judges for show committees.

Topics covered will include criteria for judging classes ofhalter, showmanship, horsemanship, hunt seat, equitation,Western pleasure, and gaited horses. Tips for judging 4-Hshows will be included.

The fees are $20 for participants younger than 18, $30 foradults, and $50 for adults wishing to take both written and livejudging exams for inclusion in the Illinois Horse Judge’sDirectory.

The seminar is sponsored by the U of I Extension and theU of I animal sciences department.

Registration materials may be obtained from KevinKline, U of I, 388 Animal Sciences Lab, 1207 W. GregoryDrive, Urbana, Ill., 61801. His e-mail address [email protected].

Illinois to receive hike in specialty crop grants

The Illinois Department of Agriculture(IDOA) will receive more federal block grantfunds next year for the state’s specialty cropindustry. About $640,000 is available.

IDOA intends to award “mini-grants” thatexpand markets for fresh produce grown in Illinoisand will acceptapplications untilthe 4 p.m. April30 deadline.

“The grantswill raise aware-ness about theabundance offresh fruits andvegetables thatare available hereand help con-sumers make food choices that improve not onlytheir health, but also the health of their local econ-omy,” said Agriculture Director Tom Jennings.

Proposed projects should accomplish one ormore of the following:

• Increase child and adult nutrition knowl-edge and consumption of specialty crops;

• Ensure industry participation at meetings ofinternational standard-setting bodies in whichthe U.S. government participates;

• Improve efficiency and reduce costs of dis-tribution systems;

• Help all entities in the specialty crop distribu-tion chain develop good agricultural practices, goodhandling practices, good manufacturing practices,and assist with funding for audits of those practices;

• Invest in specialty crop research, includingorganic research, to focus on conservation and

environmentaloutcomes;

• Enhancefood safety;

• Developnew andimproved seedvarieties andspecialty crops;

• Improvepest and diseasecontrol; and

• Promote organic and sustainable productionpractices.

Projects that improve food access in under-served communities or expand local agriculturaleconomies also are eligible. Another eligibleexpense is advertising-related expenses to publi-cize farmers’ markets, as long as programrequirements are met.

IDOA will award the grants early nextyear. Applications and instructions are availableonline at {www.agr.state.il.us} or by calling 217-524-9129.

‘The grants will raise awareness aboutthe abundance of fresh fruits and veg-etables that are available here.’

— Tom JenningsAgriculture Director

Six field days offered for small-scale farming

Soil testing, cover crops,rotational grazing, andequipment selection areamong topics that will beoffered at six New FarmerField Days for small-scalefarm operations.

The field days are gearedtoward individuals interestedin small-scale farm opera-tions that are economicallyand environmentally sustain-able, according to DeborahCavanaugh-Grant, Universityof Illinois Extension special-ist and the field days co-facilitator.

Pre-registration isrequired at least four daysprior to each workshop.

Dates, locations, and top-ics are:

• April 10, Teresa’s Aro-nia Acres, Congerville, andTeresa’s Fruits and Herbs,Eureka; developing value-added products;

• May 22; Spence Farm,Fairbury; equipment forsmall farmers;

• June 12, Prairie FruitsFarm, Champaign; evaluatingsoil quality and soil maps;

• June 16, Indian CreekFarms, Jacksonville; rotation-al grazing and fencing;

• July 24, PrairiErthFarm, Atlanta; cover crops;and

• Aug. 14, Pleasant RidgeFarm, Forrest; farmlandlease arrangements and tran-sitioning to organic farming.

The Central Illinois FarmBeginnings (CIFB) is co-sponsored by the U of I

Extension and The LandConnection. The year-longprogram includes coursework, field days, workshops,and mentorships for partici-pants.

There is a fee of $15 perworkshop for registrantswho are not enrolled inCIFB or are not members ofthe Central Illinois Collabo-rative Regional Alliance forFarmer Training (CI-CRAFT) network. CI-CRAFT is committed to pro-viding services and assis-tance to Central Illinois sus-tainable farm operations andespecially to new farmers.

For more information orto register, go online to{http://web.extension.uiuc.edu/smallfarm/begin_farm.html} or contactCavanaugh-Grant at 217-968-5512 or [email protected].

OUTLOOK


Competition for farmland still strong in IllinoisBY DANIEL GRANTFarmWeek

Young farmers who wouldlike to expand their operationsshould have opportunities toacquire more acres.

But the process will taketime, energy, and even somesavvy marketing skills because

decline this year by anywherefrom 1 to 10 percent due to adrop in farm income com-pared to 2007 and 2008.

Hicks advised Young Lead-ers interested in expandingtheir operations to not onlyimprove the efficiency oftheir operations but also towork on building good rela-tionships with landlords andbe prepared to market them-selves with such tools asresumes and financial state-ments.

“We’re in a trust game,”

Hicks said. Landlords “have totrust you and be confident inwhat you’re doing on theirfarm.”

Landlord trust and buildingrelationships is increasinglyimportant as the trend ofmore and more absenteelandowners continues, Hickssaid.

Illinois leads the nation inthe portion of farmland (62percent) owned by absenteelandowners. The national aver-age is 38 percent, according tothe most recent census.

competition for farmland hasremained strong throughoutthe ongoing national reces-sion, according to Jerry Hicks,an accredited farm managerwith Agrivest Inc.

He discussed farmland mar-ket trends recently at the Illi-nois Farm Bureau Young

Leader Conference in Spring-field.

“We’re losing more farmers(which may provide opportu-nities for young farmers),”Hicks said. “But it seems thereis more competition becauseeverybody can handle moreacres. So (young farmers) haveto be patient.”

The 2007 Ag Censusshowed just 125,000 farmsproduced more than two-thirds of the food in the U.S.compared to 2002 when ittook 144,000 farms to pro-duce the same amount offood.

It probably is no surprise,then, that the value of high-productivity farmland remainsstrong with farmers continu-ing to dominate the market atmany sales.

“Good land has stayed sta-ble,” Hicks said. “Seven-thou-sand dollars per acre in thisarea (Central Illinois) still ispretty accurate.”

Some cash rent rates haveremained stable as well,although Hicks believes rentalrates on some farms could

U of I ACES schedules ExplorACES March 12-13

The University of Illinois College of Agricultural, Consumer,and Environmental Sciences (ACES) will host ExplorACES anevent for prospective students and parents March 12-13 on the

Urbana campus. More than 1,500 high school

students from across the stateare expected to attend.

ACES students will offermore than 100 hands-on exhibits

relating to classes, clubs, and hon-ors research. Visitors also will tour lab and classroom facilitiesand talk with ACES faculty members.

ACES offers 10 undergraduate majors with 39 differentconcentrations. ExplorACES gives prospective students anoverview of potential careers and fields of study, includingbioengineering, community development, economics, humannutrition, plant breeding, resource ecology, and pre-veteri-nary studies.

For more information, go online to{aces.illinois.edu/ExplorACES/} or call 217-333-2728.

FarmWeekNow.comTo learn more about the Univer-sity of Illinois’ ExplorACES event,go to FarmWeek-Now.com.

Auction Calendar

Tues., Mar. 2. 10 a.m.Farm machinery. Bradd

Farms, Inc., GeneBradd, COOKSVILLE,

IL. Bill Kruse,Auctioneer.

Tues., Mar. 2. ChristianCo. Farmland.

www.soycapitalag.comWed., Mar. 3. 1 p.m. 357

Ac. Macon and LoganCounties. Edward

Garver, DECATUR, IL.Mike Hall Auction Co.

www.mikehallauction.comWed., Mar. 3. 2 p.m. 175

+/- Ac. Stark Co. RonElliott, BRADFORD, IL.Rick Rediger and BobJohnson, Auctioneers.www.rickrediger.com

www.biddersandbuyers.com

Thurs., Mar. 4. 10 a.m.Farmland Auction.

Lorna, Kurt, Kendall andRoberta Klokkenga,

EMDEN, IL. NehmelmanAuction Co. topauc-

tions24-7.com/nehmelman

Thurs., Mar. 4. McLeanCo. Farmland.

www.soycapitalag.comFri., Mar. 5. and Sat.,Mar. 6. 9 a.m. BothDays. Consignment

Auction. RANTOUL, IL.Gordon Hannagan

Auction Co.www.gordyvilleusa.com

Sat., Mar. 6. 10 a.m.Farm machinery and

misc. Dennis and JaniceBlunt, GREENVILLE, IL.

Langham AuctioneersInc. auctionzip.comSat., Mar. 6 10 a.m.

Consignment Auction.POPLAR GROVE, IL.

Gordon Stade,Auctioneer.

Sat., Mar. 6 9:30 a.m.Farm machinery. ElaineSheets, RUTLAND, IL.Lauf Auction Service.Sat., Mar. 6. 9 a.m.

Country Estate Auction.Carroll Suites Estate,Goldie Suits, HILLS-

BORO, IL. Cory Craig,Auctioneer.

www.corycraig.comSat., Mar. 6. Machinery

Auction. NASHVILLE, IL.Schaller Auction

Service.www.schallerauctionse

rvice.com orwww.auctionzip.comSat., Mar. 6. 10 a.m.

Farm and RecreationalLand. Fred Smith, Jr.

Estate, CARLINVILLE,IL. Mike Crabtree,

Auctioneer.Sat., Mar. 6. 10 a.m.

Like new JD tractors andmachinery. Deanne

Bonetto, HILLSBORO,IL. Kues Bros. AuctionCo., LLC. biddersand-buyers.com/kruesbros

Sat., Mar. 6. 10 a.m. 142Ac. DeWitt Co. D.D. andTennie E. Moody Trust,

WAPELLA, IL.www.haycraftauctions.

comTues., Mar. 9. 10 a.m.80 Ac. Livingston Co.Raymond E. FinfgeldEstate, KERNAN, IL.Bradleys’ and Immke

Auction Service.www.bradleyauctionsinc.

comWed., Mar. 10. 10 a.m.

600 Ac. McLean Co.Raymond E. FinfgeldEstate, COLFAX, IL.Bradleys’ and Immke

Auction Service.

www.bradleyauctionsinc.com

Wed., Mar. 10. 10 a.m.Excavation eq. Bicksler

Excavating, Inc.,NEWARK, IL. MartyMcConville and Joe

McConville, Auctioneers.www.mcconvillerealty.

com orwww.biddersandbuyers.

comThurs., Mar. 11. 10 a.m.Farm machinery. Geneand Julie Blue, CLIN-TON, IL. Mike Maske

Auction Service.www.maskeauction.comThurs., Mar. 11. 10 a.m.

1,129.48+/- Ac .Walworth Co., WI.

ELKHORN, WI. FarmersNational Co.

Fri., Mar. 12. 10:30 a.m.Real Estate Auction.Esther Ritke, RandalRitke, MORRIS, IL.

Marty McConville andJoe McConville,

Auctioneers. Fri., Mar.12. 9 a.m. ConsignmentAuction. GREENVIEW,IL. Ron Sanert, Gordon

Watkins and EldredNehmelman, auction-

eers. sanertauc-tions.com or topauc-

tions24-7.com/nehmelman

Sat., Mar. 13. 9:30 a.m.Farm machinery.

Wiesbrock Turf Farms,SUGAR GROVE, IL.

Almburg Auctioneering.Sat., Mar. 13. 10:30

a.m. Farm machineryand miscellaneous. RossPauli, DUNLAP, IL. Col.John Bliss and Col. Gail

Cowser, Auctioneers.www.illinoisauctioneers.

org

WIU ag school setsMarch 5 open house

Western Illinois University (WIU) School of Agriculture willhost an open house March 5 on the Macomb campus for highschool and transfer students.

Registration will start at 11:30 a.m. followed by a meal atnoon. Tours will start at 12:45 p.m., and activities will concludeat 3:30 p.m.

William Bailey, the ag school director, as well as faculty andcurrent students, will provide information about the opportuni-ties offered through the department and on campus. The eventalso will feature a campus tour, including the university farm andthe livestock center.

Each participant’s name will be entered into a drawing for oneof two scholarships worth $100 each. All participants shouldpark at the WIU Livestock Center and take a shuttle bus to cam-pus.

For more information, call the School of Agriculture at 309-298-1080 or e-mail [email protected]. Students may regis-ter online {www.wiu.edu/ag/agopenhouse.php}.

ENVIRONMENT


NRCS announces new WRP payment process

The Illinois NaturalResources Conservation Ser-vice (NRCS) has announced anew payment process for theWetlands Reserve Program(WRP).

NRCS State ConservationistBill Gradle said the new pay-ment rates and applicationprocess will make WRP enroll-ment quicker and offers finan-cial incentives for establishingeasements.

WRP is a voluntary programintended for restoration,enhancement, and protectionof wetlands on agriculturallands. NRCS provideslandowners with technical andfinancial support. A minimumof 20 acres may be enrolled.The applying landowner mustown the land for the previousseven years.

Landowners have threeoptions: a 30-year easement, apermanent easement, orrestoration easement only.

Landowners who sell aWRP easement receive a lumpsum cash payment in exchange

for restoring or convertingmarginal agricultural land towetland areas. They also agreeto maintain areas protected byWRP easements.

WRP easement offers willbe based on the region’s ease-ment rate cap or the landown-er’s offer, whichever is lower.The new payment optionoffers a streamlined geograph-ic area rate cap to determinethe value of land submitted forthe program. Rate caps arebased on regional locationsand an up-to-date marketanalysis.

Illinois NRCS also updatedits WRP easement rate capsand ranking form. Rates rangefrom $2,800 to $4,400 per acre.See the accompanying map forcounty rates.

The map and additionalinformation are online at{www.il.nrcs.usda.gov/programs/wrp_ewp/wrp_index.html}.

To enroll or receive moreinformation, contact theNRCS office serving yourcounty.

The Natural Resources Conservation Service has set 2010 area ratecaps for the Wetlands Reserve Program. Rate caps are based on re-gional locations and an up-to-date market analysis.

FOOD CHECK-OUT PARTICIPANTS

Laura Gibbs of Rockford’s WREX Channel 13 checks out the veg-etable aisle as she fills her cart with healthy foods as a part of FoodCheck-Out Week in Winnebago County. Representatives of thethree local TV stations competed by filling their grocery carts withenough healthy food to feed a family of four for a week. The foodcollected was donated to the Rock River Valley Food Pantry. Partici-pating in addition to Gibbs was Mike Garrigan, WIFR Channel 23news anchor, and Eric Nefstead, WTVO Channel 17 weekend mete-orologist. More than $500 worth of groceries was collected and do-nated by the Winnebago County Farm Bureau to the food pantry.Garrigan won the contest by filling his cart with the amount of foodthat came closest to the dollar amount needed to feed a family offour for a week. (Photo by Roger Christin, Winnebago County FarmBureau)

March 5Western Illinois Universi-ty School of Agricultureopen house, 11:30 a.m.to 3:30 p.m., Macomb.For information, call 309-298-1080 or e-mail [email protected].

March 5-7Annual Illinois Horse Fair,Illinois State Fairgrounds,Springfield. Clinics,demonstrations, judgingtrials, and exhibits. Fortickets, call 217-585-1600 or go to{www.HorsemensCouncil.org}.

March 9Certified livestock man-ager and manure man-agement workshop. 8:15a.m. to 12:30 p.m. Sang-amon-Menard Extension,Illinois State Fairgrounds,Springfield.

March 16Illinois Ag LegislativeDay. Howlett Building,Capitol Complex, Spring-field.

DATEBOOK

Did you know?In Illinois, FFA supervised agriculture experiences (SAEs)

projects contribure more than $10 million to the state’s econo-my each year.

***One-fourth of the Illinois civilian workforce is employed in

the agricultural industry.

FROM THE COUNTIES


BUREAU — KevinGale, AgriGold

Hybrids regional agronomist,will be the speaker at anagronomy update meeting at6:30 p.m. Monday (today) atthe Farm Bureau office.Dinner will be served. Callthe Farm Bureau office at815-875-6468 for reserva-tions or more information.

• An informational meet-ing for the spring FarmBureau task force groups willbe at 6 p.m. Tuesday at theWine Cellar. Members maychoose from four main taskforces on which to serve.Those include Education,Member Relations, FarmBusiness, and Governmentand Policy. There are onlytwo meetings a year toattend. Call the FarmBureau office at 815-875-6468 for reservations ormore information.

CARROLL — CarrollCounty Farm Bureau

Foundation scholarships areavailable. There are four$1,000 general ag scholar-ships, a $1,000 HaroldSchmidt Memorial Forestryscholarship, and two $500Viola Rath Memorial schol-arships. Applications areavailable at the Farm Bureauoffice or on the website{www.carrollcfb.org}.Deadline to return applica-tions is March 24.

• Farm Bureau will spon-sor two computer classes —Intro to Word on March 8and Intro to Excel on March15. Classes will be from 6:30to 8:30 p.m. and will be heldat Eastland High School.Cost is $15 per class or $25for both. Call the FarmBureau office at 815-244-3001 for reservations ormore information.

• The 4C’s Prime Timerswill meet at 6:30 p.m. Fridayat the Farm Bureau officefor a potluck dinner. Cardsand games will be played fol-lowing dinner. Call the FarmBureau office at 815-244-3001 for more information.

EFFINGHAM —Doug Yoder, Illinois

Farm Bureau senior directorof affiliate and risk manage-ment, will be the speaker atan average crop revenueelection program at 7 p.m.Tuesday at the Farm Bureauoffice. Call the Farm Bureauoffice at 217-342-2103 or e-mail ecfbmgr@con -solidated. net for reservationsor more information.

• The annual meeting willbe at 6:15 p.m. Monday,March 8, at the Farm Bureauoffice. Dinner will beserved. Rich Guebert Jr.,Illinois Farm Bureau vicepresident, will be the speak-er. Call the Farm Bureauoffice at 217-342-2103 for

854-2571 by Friday for reser-vations or more information.

• The Macoupin CountyAgriculture Education Foun-dation has scholarships avail-able for students who willcontinue their education inan ag-related field. Deadlineto return applications isMarch 19. Call the FarmBureau office at 217-854-2571 for an application ormore information.

MARION — FarmBureau will sponsor

a legislative breakfast at 7:30a.m. Monday, March 8, at theFarm Bureau office. StateSen. John O. Jones (R-Mt.Vernon) and state Rep. JohnCavaletto (R-Salem) willattend. Call the FarmBureau office for moreinformation.

• Farm Bureau and SalemTownship Hospital will spon-sor a wellness seminarWednesday, March 10, at theFarm Bureau office. The fol-lowing tests and costs will beavailable to members: execu-tive 3 blood profile, $35;prostate specific antigen test,$25; cholinesterase, $65; andmammogram, $80. Callbetween March 10-17 for themammogram test to receivethe discount. Call the FarmBureau office at 618-548-2100for reservations or more infor-mation.

• Farm Bureau will host a35-cent breakfast to celebrateNational Ag Week from 6 to 9a.m. Wednesday, March 17, atthe Farm Bureau office. Tick-ets are available at the FarmBureau office or from a direc-tor. No carryouts. The Illi-nois Farm Bureau RFD Net-work will have a remotebroadcast during the breakfast.Call the Farm Bureau officefor more information.

MONTGOMERY— The Prime

Timers will meet at noonWednesday, March 17, at theFarm Bureau office for acorned beef and cabbagelunch. Cost is $8. KrisReynolds, MontgomeryCounty Farm Bureau’sYoung Leader chairman, willtalk about the Young Leaderstour to Washington state.Call the Farm Bureau officeat 217-532-6171 for moreinformation.

PEORIA — Joe Varda,Mid-Illini Educational

Consultants, will instruct acommercial driver’s licensetraining course at 9 a.m.Wednesday, March 10, at theFarm Bureau office. Cost is$45 for members and $55 fornon-members. Call the FarmBureau office at 686-7070for reservations or moreinformation.

• Doug Yoder, Illinois FarmBureau senior director of affil-iate and risk management, will

be the speaker at a crop insur-ance meeting at 9 a.m. Thurs-day, March 11, at the FarmBureau office. Call the FarmBureau office for reservationsor more information.

STEPHENSON —Kevin Rund, Illinois

Farm Bureau senior directorof local government, will bethe speaker at an On-the-Road transportation seminarat 12:30 p.m. Monday, March15, at the Farm Bureauoffice. Call the Farm Bureauoffice for more information.

• Stroke Detection Pluswill perform screenings from9 a.m. to 4:30 p.m. March17-18 at the Farm Bureauoffice. Members will receivea discount. Call 877-732-8258 for an appointment ormore information.

• Farm Bureau will spon-sor a bus trip Friday, March19, to the “Gathering of theGreen” in Davenport, Iowa.It will feature a trade show,industry vendors, and educa-tional workshops for JohnDeere collectors, restorers,and enthusiasts. Call theFarm Bureau office at 815-232-3186 for reservations ormore information.

• Doug Sommer will con-duct a defensive driving classfrom 10 a.m. to 3 p.m. April 7-8, at the Farm Bureau office.Lunch will be provided. Callthe Farm Bureau office at 815-232-3186 for an appointmentor more information.

WOODFORD —The annual legisla-

tive coffee meeting will be at9:30 a.m. Monday, March 8,at the Farm Bureau office.U.S. Rep. Aaron Schock (R-Peoria) and state representa-tives will attend. Call theFarm Bureau office at 467-2347 for more information.

“From the counties” items aresubmitted by county Farm Bureaumanagers. If you have an eventor activity open to all members,contact your county manager.

reservations or more infor-mation.

• Farm Bureau will spon-sor a dinner and entertain-ment evening at 6:30 p.m.Monday, March 15, at theTeutopolis Knights ofColumbus. The SawyerBrothers will provide theentertainment. Cost is $3.Reservations and paymentare due by Monday, March 8.Call the Farm Bureau officefor reservations or moreinformation.

FORD-IROQUOIS— Farm Bureau will

sponsor Viewpoint breakfastmeetings at 7 a.m. at the fol-lowing dates and locations:Thursday, Donovan Co-opElevator, Martinton; andMonday, March 8, HappyDays Diner, Roberts. Callthe Farm Bureau office at800-424-0756 for moreinformation.

HENRY — An On-the-Road seminar

will be at 7 p.m. Tuesday atthe Farm Bureau office. Callthe Farm Bureau office at309-937-2411 for reserva-tions or more information.

• Elwynn Taylor, IowaState University Extensionclimatologist, will be thespeaker at a market outlookmeeting at 6:15 p.m. Thurs-day, March 18, at the MolineViking Club. Dinner will beserved. Cost for the sessionis $18. Call the Farm Bureauoffice at 309-937-2411 forreservations or more infor-mation.

• The Young Leaders willsponsor a countywide fooddrive “Sharing the Harvest”from March 1 to March 26.Non-perishable food itemscan be delivered to the FarmBureau office or any CountryFinancial office in HenryCounty. Young Leaders willdeliver the items to foodpantries in the county. Callthe Farm Bureau office formore information.

KENDALL — KevinRund, Illinois Farm

Bureau senior director oflocal government, will be thespeaker at an On the Roadseminar at 1:30 p.m. Friday,March 12, at the FarmBureau auditorium. Topicswill include the new entryaudit and U.S. Department ofTransportation numbers. Callthe Farm Bureau office at630-553-7403 for reserva-tions or more information.

• A truck inspection daywill be from 8 a.m. to 2 p.m.Thursday, March 25, at theGRAINCO FS plant, Rt. 47,south of Yorkville. StateTroopers Mark Odentha andSteve Harris will be theinspectors.

• There are four $1,000Kendall County Farm BureauFoundation scholarships

available for Kendall CountyFarm Bureau members; a$1,000 Matlock MemorialScholarship for a KendallCounty Farm Bureau mem-ber; and four $2,500 DobbinFamily scholarships forKendall and LaSalle Countyhigh school or college stu-dents pursuing a degree inagriculture. Deadline toreturn applications is July 1.Call the Farm Bureau officeat 630-553-7403 for an appli-cation or more information.(Correction: Last week’sFarmWeek listed KaneCounty Farm Bureau mem-bers. It should have readKendall County Farm Bureaumembers.)

• The Prime Timers willsponsor a bus trip Thursday,April 8, to Circa 21 DinnerPlayhouse in the Quad Citiesto see “Church BasementLadies 2.” Cost is $75. Thebus will leave the FarmBureau office at 9:30 a.m.Call the Farm Bureau officeat 630-553-7403 for reserva-tions or more information.

LASALLE — TheLaSalle County Farm

Bureau Board of Directorsand Viewpoint Committeewill sponsor a Call-a-Thonfrom 7 to 8 p.m. Monday,March 8, for the purpose ofcollecting new ideas, con-cerns, and needs of LaSalleCounty Farm Bureau mem-bers. Members in each dis-trict will be called. Thosewho don’t receive call shouldcontact their district directoror the Farm Bureau office at433-0371.

• The LaSalle CountyFarm Bureau Foundation hastwo $1,000 scholarshipsavailable for students whowill be or are currentlyenrolled in an ag-related fieldof study. Deadline to returnapplications is 4:30 p.m. Fri-day, March 26. Call theFarm Bureau office at 815-433-0371 or go online to{www.lasallecfb.org} formore information.

MACON — MaconCounty scholarship

applications are available onthe website{www.MaconCFB.org}.Applications must be post-marked by Monday (today).

MACOUPIN —Dale Durchholz,

AgriVisor senior grain mar-ket analyst, will be the speak-er at the spring outlookmeeting at 6 p.m. Wednesday,March 10, at the FarmBureau office. Dinner willbe served. Maxi-Yield Cropconsultants and a CountryFinancial crop insurance spe-cialist will give presentations.Cost for non-members is$10, with no charge for FarmBureau members. Call theFarm Bureau office at 217-

NOTICE OF ANNUAL MEETING

COUNTRY MUTUAL INSURANCE COMPANY

TO ALL POLICYHOLDERS ANDMEMBERS:Notice is hereby given that theannual meeting of the members ofCountry Mutual Insurance Companywill be held in the Illinois AgriculturalAssociation Building, 1701TowandaAvenue, Bloomington, Illinois onWednesday, April 21, 2010 at 1:00p.m., to receive, consider, and ifapproved, confirm and ratify thereports of the officers and of the Board of Directors of the Companyfor the year ended December 31,2009, to elect 20 members of theBoard of Directors to serve for aterm of one year, and for the trans-action of such other business asmay properly come before the meet-ing.

Elaine ThackerKathy Smith WhitmanAssistant Secretaries

PROFITABILITY


Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $32.37-$44.00 $39.5740 lbs. n/a n/a50 lbs. n/a n/aReceipts This Week Last Week

17,798 23,900*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 460 Last week 354 Last year 380Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $130; 110-130 lbs.,$110. Good and choice 1-2: 60-90 lbs., $145.Slaughter Ewes: Utility and good 1-3: $56-$59. Cull and utility 1-2: $56.

Lamb prices

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

This week Prev. week ChangeCarcass $68.18 $63.19 4.99Live $50.45 $46.76 3.69

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn02-18-10 35.0 17.7 34.202-11-10 38.7 16.1 24.8Last year 30.6 10.3 28.5Season total 1058.9 599.5 756.4Previous season total 795.1 766.5 743.1USDA projected total 1400 825 2000Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $88.24 $90.81 -2.57 Heifers $91.00 $90.83 0.17

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 Change101.38 101.62 -0.24

CME feeder cattle index — 600-800 Lbs.

Large farmer returns possiblewith proper bean management

Don’t forget about your soybeans after planting

BY LANCE RUPPERTAs spring draws nearer,

final decisions will be made onyour 2010crop and themanagementpractices youwill employ toprotect thegenetic poten-tial of theseed you pur-chase.

That issomething we

all must remember. Thegenetic potential of your cornand soybean seed is at its high-est level while the seed is stillin the bag.

After you plant the seed,Mother Nature and otherforces are at work todecrease that seed’s yieldpotential. So what can we doto protect it?

The use of solid weed,insect, disease, and stress man-agement tools all can help pro-tect corn yield.

But let’s take a minute toremember that other crop —soybeans. Adding a few man-agement practices to your soy-bean fields can pay big divi-dends in protecting yield andadding returns to your bottomline.

Using pre-emergence resid-ual herbicides has consistently

shown increased soybeanyields when used in a two-passprogram. Benefits from resid-ual herbicides are seen in bothRoundUp Ready and LibertyLink systems.

The increase in hard-to-con-trol weed species also has giv-en a renewed focus on residualherbicides and resistance man-agement. The use of a pre-emergence residual also can bebeneficial in providing a widerwindow, if the weather doesn’tallow, for timely post herbicideapplications.

Applying a pre-emergenceresidual herbicide and protect-ing three bushels per acre ofyield could equal a return oninvestment of more than 300percent vs. not using a resid-ual.

Although the move towardusing fungicides on soybeanshas been slower than in corn,the potential benefits are thesame. The proper timing ofapplication is one key to suc-cess when using fungicide onsoybeans.

Many soybean seed produc-tion acres effectively usefungicides to increase yieldsand seed quality. Again, byprotecting three bushels peracre of yield by using a fungi-cide could equal more than a250 percent return on invest-ment.

While one insect speciesmay not be at economicthresholds, the combination ofsmall numbers of manyspecies may hurt soybeanyields.

The use of insecticidesproactively may have thepotential to increase yields.The potential return on invest-ment for protecting onebushel per acre by using afoliar insecticide could bemore than 200 percent.

Increasing management lev-els on soybean production cangive growers huge rewards, asthe return on investmentpotential is great.

Look to your local FS cropspecialist to help you capital-ize on opportunities to pro-tect yield and increase yourprofits.

Lance Ruppert is GROW-MARK’s crop protection marketingmanager. His e-mail address [email protected].

Lance Ruppert

Forecast much improved for U.S. livestock industryBY DANIEL GRANTFarmWeek

A number of economicindicators suggest livestockproducers in 2010 could regainsome of their losses fromrecent years.

USDA last month projecteda decline in meat production,an increase in exports, andlower feed costs this yearcould add up to higher live-stock prices.

“We’re heading in the rightdirection,” said Ron Plain, ageconomist at the University ofMissouri in Columbia.

USDA last month project-ed commercial production ofpork this year could decline by2 percent while beef produc-tion could fall by more than 1percent.

Meanwhile, exports of bothmeats were projected toincrease this year by 9 percentto totals of 4.5 billion poundsof pork and 2.04 billionpounds of beef.

The February cattle on feedreport showed the inventoryof all cattle and calves on feed(11 million) was down 3 per-cent compared to last year

while placements in feedlots(1.83 million) were down 2percent.

The 2009 calf crop wasestimated at 35.8 million head,which would be the smallestcalf crop since 1951, accord-ing to USDA.

Meanwhile, the most recenthogs and pigs report showedthe U.S. swine inventory inDecember (65.8 million head)was down 2 percent from lastyear while the breeding herd(5.85 million head) declined by3.5 percent.

“Clearly producers havegrown tired of losing mon-ey,” Plain said. “Productionof all four major meats (beef,pork, chicken, and turkey)was down last year for thefirst time (as a group) since1973.”

USDA projected steerprices this year could average$85 to $91 per hundredweightcompared to $82.68 last year,which was the lowest averageprice since 2002.

USDA forecast hog pricesthis year of $46 to $49 perhundredweight compared toan average last year of $41.24,which was the lowest averageprice since 2003.

“If the economy doesn’tget any worse, we ought tohave higher prices,” the econo-mist said.

Plain predicted hog produc-ers this year could break even.He believes producers mayneed to trim the sow herd by

another 3 percent, though,before profits return on a con-sistent basis.

USDA also projected 2010will be a better year for dairyproducers. The all-milk price,which was below $12 perhundredweight from Febru-

ary to August last year, thisyear was projected to average$16.20 to $16.90 per hun-dredweight.

The Class III milk price for2010 was predicted to average$14.90 to $15.60 per hundred-weight.

‘ I f the economy doesn’t get any worse, weought to have higher prices.’

— Ron PlainUniversity of Missouri ag economist

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: Technicalfeatures still indicate pricesshould move higher in theshort-term. If May futurescan move above $3.89, itwould open the door for atest resistance at $3.94 to$3.97. Increase old-crop salesto 60 percent if May rallies to$3.95. We may boost saleseven more; check the CashStrategist Hotline frequently.Basis may not improve muchuntil late April/early Maywhen farmers turn their focusto planting.

�2010 crop: Decemberfutures have hit our $4.10 tar-get, triggering a 20 percentnew-crop sale. Use rallies forcatch-up sales. Plan addition-al sales by early April.

�Fundamentals: Funda-mentals continue to be mostlylacking in the corn market,but some early chatter is start-ing to circulate about possiblespring planting delays. Whilewe are still weeks away inmajor Midwestern areas, fieldsare saturated from the wet falland snowy winter. It will nottake much moisture thisspring to cause delays. Soybean Strategy

�2009 crop: The soy-bean market responds to thewhims of the outside mar-kets as much as anythingelse, but South Americanfactors are becoming anincreasing drag. Boost salesto 50 percent if May futuresreach $9.90. The priceand/or amount could changeat any time; check the CashStrategist Hotline frequently.

�2010 crop: Leave anorder to make a 20 percentsale if November futuresreach $9.59. Check the CashStrategist Hotline occasionallyfor changes.

�Fundamentals: Talk ofeven larger South Americancrops seems to prevail, eventhough some of the yieldreports from the early harvestin Brazil suggest otherwise.Heavy rains have dominatedArgentina, complicatingfungicide applications forrust, but a drier patternappears to be setting in for theshort term. Export sales may

have been lackluster lastweek, but that was the LunarNew Year holiday in China. Wheat Strategy

�2009 crop: Wheat pricescontinue to trade between the20- and 50-day moving aver-ages. Recent activity still sug-gests a short-term bottomhas been established. Down-side risk should be limitedbelow the $4.92 level onChicago May futures. Make a10 percent sale if that con-tract hits $5.26, bringing thetotal to 90 percent.

�2010 crop: Use a rally to$5.40 on Chicago July futuresto make an initial 25 percentsale. Check the Cash StrategistHotline daily as this targetcould be adjusted at any time.

�Fundamentals: Thesoft red winter wheat crop inthe Midwest continues tostruggle. The crop was lategetting in the ground becauseof an extremely wet fall, result-ing in a 29 percent decline inplantings. The winter monthswith the exceptional wet andcold have not provided anyrelief.

Over the past week, con-cern about a wet spring andpotential planting problemsagain started to creep intoboth the corn and wheat mar-kets. With the calendar rollingover from February intoMarch, the concern probablywill escalate.

The anxiety about thisspring has been elevated bylast fall’s heavy rains and thiswinter’s equally heavy snows.At this writing, snow is still onthe ground north of a linestretching from Kansas City tothe Ohio River Valley, withsome snow still in places southof that.

Snowcover is heavy northof a line stretching fromOmaha to the southern tip ofLake Michigan. And, it’s espe-cially heavy from northernIowa into the Dakotas.

In northern South Dakotaand two-thirds of NorthDakota, the snow depth is stillmore than 20 inches. Thewater equivalent of snowfrom northwestern Iowa intoNorth Dakota is in excess of4 inches, with a few spots hav-ing more than 6 inches ofsnow/water equivalent.

At the same time, soil mois-ture is above normal in nearlyevery Corn Belt state fromIllinois west, as well as North-ern Plains states. From Cen-

Basis charts

tral Illinois to central Iowa andin the eastern third of SouthDakota, soil moisture is at the99th percentile of historicalamounts. Soil moisture inthose locations is 3 to 4 inchesmore than normal for thistime of year.

The latest forecast forMarch calls for normal tocooler-than-normal tempera-tures over much of this area,with precipitation expected tobe mostly normal. Illinois hasa chance of seeing slightlybelow-normal rains, with thealready drier-than-normalIndiana and Ohio expected tohave normal to below-normalprecipitation.

In summation, where there’sstill a lot of snow, the soils arewet, and where there’s not a lotof snow, soils are drier. AndMarch forecasts suggest it mayremain that way. Hence, thespring anxiety for corn, soy-beans, and especially springwheat.

In the end, though, we won-der if the current anxiousnessabout having the third consec-utive troublesome spring willprove to be more than an early“crop scare” for corn andwheat, along with the associat-ed potential for the larger soy-bean plantings that many ana-lysts currently foresee.

However, price cycles tendto tell us that this early anx-iousness about planting may beall for naught. Price cycles,especially those for corn andwheat, suggest prices will feeldownward pressure starting asearly as late April or early May.

The primary reason we’dexpect corn, wheat, and evensoybean prices to slip lowerthrough the month of Maywould be good plantingprogress.

It may not be any fasterthan normal, but the down-ward drag of those cycles sug-gest it’s unlikely to be late.

And, given the good soilmoisture to start this year, areasonable good planting paceshould tend to enhance thepossibility of seeing goodcorn, soybean, and wheatcrops.

Cents per bu.

Planting fears escalating

PERSPECTIVES


Life as a University of Illi-nois, College of Agricultural,Consumer, and EnvironmentalSciences (ACES) senior is pret-ty good.

In four short years, I havefound my dream career, experi-enced once-in-a-lifetime intern-ships, and networked with

amazing peoplefrom all aroundthe globe.

Do I reallyhave to gradu-ate?

Comingfrom a farm, Iwill admit thatwas I worriedabout attendingsuch a large

university. But the College ofACES’ family atmospheremade me feel right at homewith its personal, world-classprofessors; many opportunities;and beautiful campus.

Our ACES Student Councilhosts a monthly “Lunch withthe Deans,” at which studentscatch up with the deans of thecollege and grab a bite to eat.

I could not imagine collegelife anywhere else, and am cer-tain I would not have had near-ly the experience at anotheruniversity.

Because of my passion forthe College of ACES, I enjoytelling others about the college

and its many benefits, which iswhy I hope to see high schoolstudents and their families hereon campus for the sixth annualExplorACES on March 12-13.

Before the student groaningbegins and the thought of“Not another open house,”surfaces, let me assure you thatExplorACES is somethingentirely different.

ExplorACES is an event forstudents, hosted by students,with the help of some dedicat-ed advisers. Students and theirfamilies will experience morethan being handed a brochureat a booth. We want to help youshare in our student experi-ences here.

At ExplorACES, you willfind everything from the IlliniPullers’ “tricked out” tractor toProfessor Dianne Noland’shorticulture students designingflower arrangements to theirfavorite iTunes playlist — plusthe famous fistulated cow!

This year, we have theupbeat theme “Get Synced,”through which you can connectwith your future. At Explor -ACES, visitors have the oppor-tunity to interact with currentstudents and faculty to getquestions answered abouthousing, scholarships, majors,or just college life in general.

We also will have a foodtent, where you can take a

break and indulge in someaward-winning chili and otherdelicious food.

One of the most importantaspects of this event is that stu-dents run it. A group of dedi-cated College of ACES stu-dents started planning back inSeptember.

We are college students andknow the questions incomingstudents have about college. Weno doubt remember all thequestions our parents had. Youwill get honest answers fromstudents about life here at theU of I.

Come to this event with anopen mind and willingness tolearn about all the majorsACES offers. When I was inhigh school, I came to my firstExplorACES, and I was certainI knew what my major wasgoing to be. But I changed mymajor and couldn’t be happier.

Visit all the exhibits, askquestions, and learn as much asyou can. This is one weekend inwhich you can have all yourquestions answered by currentstudents, professors, and evendeans of the college. Do notlimit yourself — keep allopportunities open.

I could go on and on aboutthe College of ACES, but Icould never do it justice. This issomething you must experiencefor yourself. After visiting our

campus, I am certain you willbe a believer in our familyatmosphere and the success ofour students and faculty.

As a college senior preparingto graduate, I will have morethan just a degree when I inter-view for jobs.

I also will have experiencethat has taught me importantlessons I couldn’t have learnedfrom a text book. There issomething for everybody here,regardless of whether you

come from a farm.Be sure to mark March 12-

13 in your calendars. Bring thefamily, and come see for your-self what the College ofACES is all about!

Carly Rakes, Auburn, is a seniorin agricultural communicationswith a concentration in news-editor-ial within the College of ACES.After graduation, she hopes to pur-sue a master’s degree in the depart-ment of advertising.

CARLYRAKES

The recent primary elections once againdemonstrated the importance of voter participa-tion in the election process. Hopefully, you alsoknow how important it is to remain engaged inissues of importance once those elected officialstake office.

When elected officials lack thedesire or effort to make neces-sary changes to meet constituentconcerns, voters must urge thoseelected officials to address theproblem. Recently, it has becomeincreasingly obvious that some-thing must be done to correct theprocess for legislative redistrict-ing.

Every 10 years the U.S. Censusis conducted and the results of

that census are used to determine the need fornew legislative district maps for state and federalelections. The Illinois House and Senate areempowered by the Illinois Constitution to devel-op these new legislative maps.

The current process for drawing these mapsusually has resulted in maps that favor incum-bents, a political party, or both.

Having experienced the new maps drawn fol-lowing our last census in 2000, members of ourcounty Farm Bureau (Knox) felt it important tobegin to address concerns over the new maps aswell as the process used to get there.

We submitted a policy resolution to the IllinoisFarm Bureau voting delegates hoping to gain supportfor reform of the legislative redistricting process, and

the delegates agreed. The delegates supported an unbiased third-party

approach that does not favor political affiliation orprior election results.

Further, the delegates said the districts shouldbe compact, contiguous, and impartial to politicalparty and incumbency. They also felt that the dis-trict lines should follow county, township, andmunicipal boundaries whenever possible.

IFB leadership wasted no time in developing anaction plan to address this time-sensitive issue.Working with other voter groups, IFB will supportefforts to collect signatures for a ballot initiative toamend the Illinois Constitution to address legisla-tive redistricting.

We need your help in securing signatures to getthis needed reform on the November ballot forIllinois voters to take charge on this importantissue.

Contact your county Farm Bureau office formore information or visit the website{www.ilfairmap.com}. We need 500,000 signaturesby April 1, 2010.

I know this is a large effort to accomplish actionthat will not immediately solve any of the currentproblems facing our state. We must, however, showour elected officials that we voters no longer arewilling to wait for them to talk about our problems,but that we will act to solve problems ourselves.

We do not like the manner in which they havehandled their responsibility of redistricting, so weneed to show them that we know how to fix theproblem. It may not be the answer to all of our Illi-nois government problems, but it is a good start.

David C. Erickson farms with his family in Knox Countyand serves on the Knox County Farm Bureau Board. His e-mail address is [email protected].

DAVIDERICKSON

Bruce Branham, left, crop sciences professor at the University of Illinois’College of Agricultural, Consumer, and Environmental Sciences (ACES),chats with visiting high school students and parents at last year’s Explor-ACES. (Photo courtesy of the U of I College of ACES)

Going to college? Connect with your future career at College of ACES

Legislative redistricting is a good start

Terry Rosenberger, left, Jackson County Farm Bureau leader andSouthern FS board member, signs a petition to put the Fair MapAmendment on the November ballot. Kayla Arnolts, Illinois Farm Bu-reau administrative assistant, explains the process, intended tochange the method used to draw state legislative districts, to MaconCounty Farm Bureau leader Emmett Sefton. Voters’ signatures werecollected last week during the Farm Bureau Governmental AffairsLeadership Conference in Springfield. Last week Senate Democratsintroduced a constitutional amendment to change the redistrictingprocess. (Photo by Kay Shipman)

farmweek march 1 2010

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