farmweek march 5 2012

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Monday, March 5, 2012 Two sections Volume 40, No. 10

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

THE OBama administrationhas released 58 new actions that ithopes will protect the Great Lakesfrom the invasive Asian carp. .........11

EaRly vOTing STaRTEdlast week and will continue throughMarch 15, according to the IllinoisState Board of Elections. ..............2

ST. JOSEPH CHURCH inRidgway was among the casualtiesof a tornado last week that killedsix and injured several others. .......2

ONE STRANGE WEEK

BY DANIEL GRANTFarmWeek

A recent food industry trendof phasing out sow gestationstalls to improve animal welfarein some cases could have theopposite effect.

Janeen Salak-Johnson, ananimal scientist at the Universi-ty of Illinois, told FarmWeekthat university studies haveshown some sows moved fromstalls into group housing sys-tems are more prone to injuriesand stress.

“There are sows in grouphousing systems we’ve studied,and their well-being has notimproved,” Salak-Johnson said.

Philip Nelson, president ofthe Illinois Farm Bureau and alifelong pork producer fromLaSalle County, said eliminatinggestation stalls won’t guaranteebetter animal welfare.

“Everybody wants to get ridof gestation stalls, but we alsoneed to recognize group hous-ing, under its present form,

doesn’t really work on a largescale,” Nelson said. “Clearlythere are more downer sowsand sows are more aggressive ina group environment.

“That’s my concern,” hecontinued. “I think we needmore research into this.”

Smithfield Farms and Cargillin recent years started phasingout the use of gestation stalls inpork production systems.Smithfield announced in 2007 itplanned to eliminate all gesta-tion stalls from its operationsby 2017.

But, at least in the case ofSmithfield, the world’s largestpork producer, the proposalhasn’t been easy to achieve.Smithfield as of last year had30 percent of sows in grouphousing systems.

The issue heated up againlate last month when McDon-ald’s, which buys about 1 per-cent of all pork produced in theU.S., announced it plans tophase out its pork purchases

from producers who use gesta-tion stalls.

“What data does McDon-ald’s have to show gestationstalls are not sustainable?”Salak-Johnson questioned.“The reality is McDonald’smade a business decision” thatwas backed by the HumaneSociety of the United States.

Salak-Johnson contactedMcDonald’s in an attempt toarrange a meeting to discuss thepros and cons of various hous-ing systems and animal welfarebut, as of last week, had notheard back from the OakBrook-based fast-food giant.

IFB also is in the process ofarranging meetings with foodindustry representatives, Nel-son noted.

“We need a direct linkagewith restaurants and distribu-tors so they really understandwhat we (farmers) do to raiseanimals to get that food to theirrestaurants,” he said.

Nelson and Salak-Johnson

are concerned the trend ofphasing out certain productionmethods could limit farmers’options to care for their pigsand it could produce unintend-ed consequences such as moreinjuries or lame sows.

“Farmers need to look ateach system based on sows’needs and wants,” the animalscientist noted. “Producersshould have a choice (of hous-ing systems) because whatworks on one person’s farmwon’t necessarily work onsomeone else’s farm.”

Salak-Johnson said shebelieves researchers canimprove animal welfare of allhousing systems. She is amongresearchers in Illinois who arestudying animal welfare andvarious systems, including free-access and turn-around stalls.

“I think we can design a bet-ter gestation stall,” she said.“But I don’t think it should beeliminated” as an option forfarmers.

Phasing out gestation stalls may not be good for all pigs

FB members hear lateston pesticide permitsBY KAY SHIPMANFarmWeek

Illinois Environmental Pro-tection Agency (IEPA) special-ists last week at the IllinoisFarm Bureau GovernmentalAffairs Leadership Conferencein Springfield discussed thepesticide applications thatwould require a new NationalPollutant Discharge Elimina-tion System (NPDES) permit.

“IFB and the AmericanFarm Bureau Federation willcontinue to oppose the (new)permit, but this is where weare now,” Nancy Erickson, IFB

director of natural and envi-ronmental resources, toldfarmers at the conference.

“We feel it is important foryou to understand what theIEPA is saying and whetheryou need a permit to applypesticides.” New regulations that tookeffect Oct. 31 will impact avariety of pesticide applica-tions “to or over water or atwater’s edge.” The necessityfor a permit is a result of a

Sixth Circuit Court of Appealsdecision that some applicatorsneed a permit under the CleanWater Act.

Darin LeCrone of IEPA’swater bureau advised farmersthat any “terrestrial applica-tion” would not require a per-mit. “That includes drainageswales and grass waterways in afield — if there is no waterinvolved and it (pesticideresidue) will not reach watersof the U.S.” Leslie Lowery,also with IEPA’s water bureau,added the applicator also mustfollow restrictions on theproduct label.

A few permit exemptionsare included in the new rules.A permit would not be neededif pesticide ran off from afield in stormwater or was theresult of off-target spray drift,LeCrone said.

LeCrone and Lowery admit-ted permit questions will

FarmWeekNow.com

To v i ew the la t e s t news onNPDES pesticide permits, go toFarmWeekNow.com.

The week containing Leap Day certainly was a strange one. On Tuesday, Zack Harvey of MasonCity, who works for Reggie Dowell of Greenview, was working ground on a 40-acre field nearGreenview in Menard County, obviously something that doesn’t happen often in late February. Andthen, of course, there was the fatal tornado in Southern Illinois’ Harrisburg, another weather anom-aly for February (see story on page 2). (Photo by Ken Kashian)

See Pesticide, page 3

GALESBURG HEARING PLANNED — U.S.

House Ag Chairman Frank Lucas (R-Okla.) has

announced a series of 2012 farm bill field hearings across

the country in March and April, with a hearing set for

March 23 in Galesburg.

Ag Committee member Rep. Bobby Schilling, a Colona

Republican, plans to participate in the 9 a.m. hearing,

which will offer Illinois farmers an opportunity to voice

their priorities for the next farm bill.

The hearing will be at Carl Sandburg College, Student

Center Building B, 2400 Tom L. Wilson Boulevard.

FERAL HOGS ON IDNR’S MOST WANTED

LIST — Marc Miller, director of the Illinois Department

of Natural Resources (IDNR), wants farmers to watch for

and shoot feral hogs — wild hogs that have been con-

firmed in 17 counties.

“You don’t have to have a hunting license to shoot them

on sight,” Miller told Farm Bureau members at the Gov-

ernmental Affairs Leadership Conference last week.

Miller noted feral hogs are known to carry diseases that

may infect livestock, wildlife, and pets.

“We (IDNR) don’t have the funding to go out and

address this (invasive species), and we don’t want to create

an industry around hunting them,” Miller said. “Let’s work

together on this issue.”

A side benefit is the feral pork can be tasty, he added.

FUELING POLICY — Renewable Energy Group

(REG), which operates two Illinois biodiesel plants, has

announced a new policy advocacy website designed to

“centralize” the company’s constituents and rally support

for biodiesel policy issues.

Registration and information is available at

{http://advocacy.regi.com/}. The new site design

allows biofuels supporters to sign up for informational

updates and alerts and offers what REG termed an “easy-

to-use platform” to contact state or federal elected offi-

cials.

“The biodiesel industry is facing important issues like

the expansion of the (federal Renewable Fuels Standard)

and the reinstatement of the federal (biodiesel) blenders’

tax incentive in order to grow green collar job creation,

create a healthy environment, and expand energy security,”

REG Director of Corporate Affairs Scott Hedderich not-

ed.

REG also owns plants in Minnesota and Texas and

plans added operations in Louisiana, New Mexico, and

Kansas.

FarmWeek Monday, February 27, 2012

(ISSN0197-6680)

Vol. 40 No. 9 February 27, 2012

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

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

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

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© 2012 Illinois Agricultural Association

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Quick Takesaround illinois

Leap Day tornado deadly but not uniqueBY DAVE MCCLELLANDFarmWeek

Leap Day 2012 is one thatwill long be remembered inIllinois for the tragedy itbrought to Harrisburg inSouthern Illinois.

Six people were killed andseveral others injured when anEF-4 tornado ripped throughthe town of 9,000 people,causing millions of dollars ofdamage.

An EF-4 tornado is the sec-ond most destructive type andproduces wind gusts of 168 to199 mph.

The county Farm Bureauoffice in Harrisburg and theGallatin County Farm Bureaubuilding in Ridgway both weredamaged extensively. TheSouthern FS facility next to theSaline County FB office wasdestroyed.

Because of damage to itsoffice in Harrisburg, the SalineCounty Farm Service Agencytemporarily relocated to theGallatin-Hardin County Serv-ice Center in Ridgway.

Country Financial had re-ceived 250 claims by Friday,

mostly to homes and businessbuildings, said spokesmanChris Anderson.

Illinois Gov. Pat Quinn de-clared the southern third ofIllinois a disaster area, whichensures that state resourcesand personnel will assist withrecovery efforts.

The governor also requestedthe Federal Emergency Man-agement Agency (FEMA) toassist with damage assessmentsin Gallatin, Massac, Perry, Pu-laski, Randolph, Saline, Union,and Williamson counties.

FEMA will begin its assess-ment of damage to homes andbusinesses today (Monday).The assessments are necessaryto support a request for federalassistance.

While a February tornado isunusual, it is not unprecedent-ed.

Of 2,320 tornadoes report-ed in Illinois between 1950and 2011, 39 of them oc-curred in February, said JimAngel, Illinois state climatolo-gist.

Those tornadoes hadcaused six deaths, a number

now doubled with lastWednesday’s event.

“EF-4 tornadoes are rela-tively rare in Illinois,” saidAngel. Of the tornadoes re-ported in Illinois between1950 and 2011, only 40 werein that category.

“However, they are verydeadly,” said Angel. “Of the203 tornado-related deathsduring that same period, 100came from EF-4 events.”

Before the event in Harris-burg, the only other EF-4 tor-nado to strike Illinois in Feb-ruary was on Feb. 25, 1956,when one swept into St. ClairCounty, causing six deaths inIllinois and Missouri.

The Harrisburg tornadowas the worst to hit Illinoissince 2004 when an EF-3 tor-nado killed eight people atUtica in LaSalle County.

Southern Illinois, however,did experience the worst tor-nado disaster in U.S. history.On March 18, 1925, a tornadomoved through Missouri,Southern Illinois, and south-ern Indiana, leaving 695 peo-ple dead.

BY KAY SHIPMANFarmWeek

Registered voters don’t haveto wait until March 20 to votein the Illinois primary election.Many registered voters whoare not able to vote in personon election day choose to voteby absentee ballot or partici-pate in early voting.

Early voting started lastweek and will continuethrough March 15, accordingto the Illinois State Board ofElections.

Interested voters shouldcheck with their local electionauthorities for polling placesand early voting hours at eachlocation.

Voters who participate inearly voting must show valididentification with a photo,

such as a current driver’slicense. Of course, a personwho votes during the early vot-ing period legally is prohibitedfrom voting again on electionday.

Votes cast during early vot-ing will not be counted untilafter the polls close on March20.

Using an absentee ballot isanother way to vote.

Individuals who may voteby absentee ballot includethose in the military and theirspouses and children ages 18or older and voters who aregoing to be temporarily out ofthe country.

To receive an absentee bal-lot, a voter may obtain anapplication either by mail or inperson from the election

authority for the jurisdiction inwhich the voter is registered.

Absentee voting begins 40days before the election. Forthose applying by mail, March15 will be the last day torequest an absentee ballot forthe March 20 primary. Thoseplanning to vote by absenteeballot may vote in person up toand including the day beforethe election.

Absentee voting by mailmust be completed using thecertified envelope and otherforms provided.

General information aboutregistering to vote and differ-ent types of voting is availablefrom your local electionauthority or from the StateBoard of Elections online at{www.elections.il.gov}.

Illinois voters may use absentee or early voting

Damage to the Saline County Farm Bureau building from a killer tornado that struck on Leap Day lastweek was extensive, although insurance adjusters believe the building is structurally sound and can berepaired. The pile of debris off to the left of the building is what remained of the destroyed Southern FSfacility. (Photo by Jody Hughes, Saline County Farm Bureau manager)

state

FarmWeek Monday, March 5, 2012

Continued from page 1remain regarding some pesticideapplications, primarily those “atwater’s edge.”

“It’s kind of up to you guys todecide if you will need a permit,”LeCrone said.

For applications that require apermit, either the applicator orthe person who makes the deci-sion on pesticide application musthave a permit, according toLeCrone. Erickson urged farmersto be sure their custom applica-

tors have a permit if one is need-ed.

Asked about the need for per-mit to apply algaecide to a farmpond, LeCrone said that woulddepend on the pond and the pos-sibility that it might overflow,causing the discharge waters andpesticide to “enter waters of theU.S.”

In that scenario, a permitwould be needed, according toLeCrone. A permit would notbe needed if there was no

overflow outlet to allow a dis-charge of water, he added.

IEPA does not know howmany new NPDES pesticidepermits it may issue this year.LeCrone speculated the numbermay range between 5,000 and10,000.

For more information, goonline to {www.epa.state.il.us/water/permits/pesticide/index.html} or call IEPA’s water pollu-tion control division at 217-782-0610.

Bob Flider, left, acting state agriculture director, listens to HancockCounty Farm Bureau leader Sam Zumwalt, right, as Illinois Farm Bu-reau Vice President Rich Guebert Jr. looks on. Flider listened to farmers’concerns after he spoke at the IFB Governmental Affairs LeadershipConference in Springfield last week. (Photo by Kay Shipman)

IDOA, IDNRfacing cuts

Tough state fiscal condi-tions and proposed budgetcuts mean the state depart-ments of agriculture and nat-ural resources are reaching outto farmers and landowners.

“We want to work with youand acknowledge it’s the familyfarms and folks on the landwho are the best stewards. Iknow stewardship is stronglyingrained,” Marc Miller, direc-

tor of the Illinois Departmentof Natural Resources (IDNR),told Farm Bureau leaders lastweek.

Miller and acting IllinoisDirector of Agriculture BobFlider spoke on a state agencypanel during the Illinois FarmBureau Governmental AffairsLeadership Conference inSpringfield.

Both Miller and Flideracknowledged their respectiveagencies face state budget cutsand employee losses.

“During these challengingeconomic times, we need tofind ways to be more effec-

tive,” Flider said. “Agriculturehas been, and will continue tobe, the backbone of the Illi-nois economy ... Ag needs tobe part of the solution for Illi-nois’ economy.”

Flider noted Gov. PatQuinn’s goal to increaseexports and mentioned thegovernor’s appointment of anexport advisory panel, whichincludes IFB Vice PresidentRich Guebert Jr.

“When you have moneycoming into Illinois from out-side of the state and thecountry, that is an economicboost,” Flider said.

Miller reached out to FarmBureau members to help him “protect the rights to huntand fish and to protect ourheritage and traditions.”

Given that 96 percent ofland in Illinois is privatelyowned, he also emphasizedthe need to work withlandowners “to help you pro-tect what is yours” and tofind ways to provide outdoorrecreational opportunities.

In response to audiencequestions, Miller acknowl-edged the state’s dam and lev-ee infrastructure needs to beaddressed and that we have“levees that have outlivedtheir usefulness.”

“At DNR, we are lookingat ways to improve andenhance flood protection,” hesaid.

As for the announced clos-ing of the animal disease labin Centralia, “these weretough decisions to make,”Flider said, adding the depart-ment analyzed the situation toensure that services could beprovided at the lab in Gales-burg. — Kay Shipman

At the Illinois Farm BureauGovernmental Affairs Leader-ship Conference last week, theIllinois Environmental Protec-tion Agency (IEPA) providedthe following answers to ques-tions about new rules for theNational Pollutant DischargeElimination System (NPDES)pesticide permit:

Question: If I apply anaquatic-use pesticide towater, do I need a permit?

IEPA: Yes, all pesticide appli-cations to or over waters of theU.S. need to be covered by anNPDES permit.

If I apply a pesticidelabeled for use in water to aroadside ditch, do I have tohave a permit?

IEPA: Yes, if the ditch is awater of the U.S. or is a tribu-tary to waters of the U.S. andthe pesticide or its residualwill enter waters of the U.S.

Do I need a permit if Iapply a pesticide to a pond,regardless of whether thewater from the pond is con-nected to another water?

IEPA: Yes, if the pond hasan overflow structure thatwould discharge to waters ofthe U.S. and you apply pesti-cides to the pond.

No, if the pond has nooverflow outlet that dis-charges water.

IEPA offers answers to NPDES permit questions

Pesticide

Agency directors seek to work with farmers


Christopher Kennedy, chair-man of the University of Illi-nois Board of Trustees, lastweek during the Illinois FarmBureau Governmental AffairsLeadership Conference inSpringfield made a strong casefor Illinois to support itsresearch universities and reapthe economic benefits.

Kennedy, the son of Robertand Ethel Kennedy, noted hishometown of Boston was ableto rebuild economically severaltimes due to new industriesthat sprang from its famousresearch universities, whichinclude Harvard and the Mass-achusetts Institute of Technol-ogy (MIT). MIT alumni alonehave founded 25,000 compa-nies, he added.

“You must care about ourresearch universities and howthey impact the state,”Kennedy told Farm Bureaumembers.

He called research institu-tions “perpetual job-creatingmachines” because discoveriescreate new knowledge, whichleads to new products, whichfoster new businesses and jobs,which cause economic growththat supports increased fund-ing for education.

Again, using Boston as hisposter child, Kennedydescribed how university presi-dents in that city “stayed close”to their powerful political lead-ers, who in turn, brought fed-eral funding back to the univer-sities.

“Most business leaders in

Illinois couldn’t name the uni-versity presidents, and even ifthey could name them, theyprobably have not gotten anopen invitation” to visit thecampuses, Kennedy said.

He then read a laundry listof political leaders, startingwith President Obama, withties to Illinois.

The former long-time presi-dent of Chicago’s MerchandiseMart, Kennedy said, “I knowwhat it takes to get companiesto move here and grow.”

Illinois’ economic future willnot fare well if current eco-nomic trends continue and thestate maintains the status quo,according to Kennedy.

Business consolidation, evenamong large corporations, con-tinues worldwide, and econom-ic activity is consolidating inso-called “mega cities.” Buteconomists predict Illinois

soon will not have a single cityamong the nation’s 50 wealthi-est cities, Kennedy noted.

“Companies will allocatetheir wealth to other competi-tive cities” outside Illinois, hesaid. “Increased economicdevelopment is critical.”

The state’s economy isweaker than ever before withthe nation’s fourth highest taxburden per capita, he said. Jobgrowth has been slower than itwas after previous recessions.

Kennedy was critical of theQuinn administration’s propos-al to have universities cover agreater portion of theiremployees’ pension fund.

“That’s taking a budgetproblem and creating an eco-nomic problem,” he toldFarmWeek after his speech.“We’re opposed to anythingthat hurts the future of thestate.”

Kennedy: Research universities‘perpetual job-creating machines’

Illinois Farm Bureau President Philip Nelson, left, chats with ChristopherKennedy, chairman of the University of Illinois Board of Trustees, beforeKennedy spoke at the IFB Governmental Affairs and Leadership Confer-ence in Springfield last week. (Photo by Kay Shipman)

‘We want to workwi th you and ac-knowledge it’s thefami ly farms andfolks on the landwho are the beststewards.’

— Marc MillerIllinois Department of Natural

Resources director

energy


Vilsack: Ethanol industry must market itself betterBY MARTIN ROSSFarmWeek

Renewable Fuels Associa-tion CEO Bob Dinneen callsethanol “one of the greatestsuccess stories we never hearabout.” Ag Secretary TomVilsack urges the ethanolindustry to do a better jobgetting the word out.

According to Dinneen, theindustry has been the fastestgrowing sector in the nation.

The value of industry out-put has grown by an averageannual 7.9 percent since 1998,while the U.S. economy hasgrown by an average 2.2 per-cent.

Ethanol’s growth rate hassurpassed that of eitherInternet publishing/broad-

Ethanol Conference, Vilsackstressed the need to reach agoal of 36 billion gallons ofU.S. biofuels use by 2022.“E15’s important,” heargued, urging ethanol/fuelsuppliers to “register as soonas you can” to market theblend now that the U.S. Envi-ronmental Protection Agencyhas approved E15 healthdata.

Vilsack hailed the nationalsecurity, job, ag income, andtrade benefits of biofuels(“You helped us reach arecord amount of ag exportslast year,” he told ethanolproducers). But he admon-ished biofuels advocates to“better market the benefits ofthis industry.”

Vilsack acknowledged a“very concerted, very organ-ized effort to underminepeople’s confidence in thisindustry.” He challenged“food vs. fuel” charges lev-eled at corn ethanol, noting84 percent of food costs goto “people who package,process, refrigerate, store,transport food — all thosepeople who use oil.”

“It’s not us,” he said. “It’simportant to push back on allthose myths, but it’s alsoimportant to have a positivemessage about this industry.

“It’s important to informconsumers they have choiceat the pump and that they’repaying less at the pumpbecause of this industry.”

casting or petroleum refiningand oil and gas extraction,Dinneen said. U.S. ethanolproduction now includes 209plants in 24 states, and theindustry produced a record13.9 billion gallons in 2011.

Despite reduced federalsupport for ethanol, Dinneensees continued growth, citing“sustained” $80- to $100-per-barrel oil, technologies thatmay unlock the potential ofcellulosic ethanol, anticipatedsales of 15 percent ethanol

blends, and ethanol “market-ing opportunities opening allover the globe.”

“Certainly, the market-place isn’t great right now —nobody’s making a lot ofmoney — but that’s a cyclicalthing,” he told FarmWeek.

“Most (ethanol) producersunderstand that they may notbe making much moneytoday but that next quarter,the quarter after that, theywill be.”

At February’s National

Vilsack says new fuel standard vital to ethanol’s future Federal incentives for next-

generation ethanol develop-ment hinge on congressionalbudget priorities. The successof new ethanol blends hingesin part on defeating oppositionfrom biofuels critics.

But the ethanol industry’sfuture itself hinges on thenation’s biofuels commitmentunder the federal RenewableFuel Standard (RFS2), according

to Ag Secretary Tom Vilsack. The standard mandates

36 billion gallons of annualbiofuels use by 2020. TheU.S. Environmental Protec-tion Agency has set a 15.2-billion-gallon renewablefuels target for 2012,including 8.65 million gal-lons of cellulosic ethanoland 1 billion gallons of

biodiesel and other renew-able diesel fuels beyondexisting corn-based ethanol.

The ethanol sector is count-ing on the RFS2 to providedemand stability amid uncer-tain energy prices and elimina-tion of the federal ethanol taxcredit. Biodiesel interests con-tinue to push both retroactiveextension of the expiredbiodiesel credit and higher

RFS2 volumes in 2013.Midwest interests have lob-

bied for inclusion of sorghum-based ethanol in RFS2 require-ments. RFS2-driven demand isexpected to fuel developmentof cellulosic ethanol.

Vilsack argues the RFS2 andits long-term goals are “impor-tant to the security of thiscountry,” in terms of reducing

oil imports from unstable orhostile regions.

“Make no mistake: Justbecause (the RFS2) is in thelaw doesn’t mean it will alwaysbe in the law,” he warned.

“Because of the extraordi-nary work that you’ve doneover the last several decades togrow and expand this industry,you’ve gotten the attention ofthe oil industry, no question.

“Now, there are very inter-esting and subtle ways folksare beginning to talk aboutthe Renewable Fuels Stan-dard: Do we need it? Shouldit be changed? Should it beexpanded?”

A cellulosic ethanol taxcredit remains in force throughDec. 31, USDA has createdfive “virtual research centers”to help identify new feedstockopportunities and improveproduction, and 2008 farm billprograms have enabled USDAto grant hundreds of millionsin loan guarantees for biore-fineries.

In addition, Vilsack saidUSDA has identified 50,000acres across nine project areaswhere non-food crops can beraised “to supplement corn-based ethanol.” But the 2012farm bill faces major spendingcuts possibly targeting energyprograms.

Vilsack noted inclusion ofbiofuels in President Obama’snewly unveiled “all-of-the-above” energy strategy. In aspeech detailing the plan, Oba-ma noted use of “clean,

‘Just because (the RFS2) is in the law doesn’t meanit will always be in the law.’

— Tom VilsackU.S. ag secretary

Senate proposalseeks more powerfrom biomass

A new Senate renewable power proposal has garnered sup-port from ethanol as well as biomass energy interests.

Last week, U.S. Senate Energy and Natural Resources Com-mittee chairman Jeff Bingaman (D-N.M.) unveiled a proposedClean Energy Standard (CES) requiring that a percentage ofU.S. electricity come from renewable sources such as biomass.

Novozymes, a key producer of enzymes that convert energycrops and crop residues into biofuel, was among those hailingBingaman’s bill. Novozymes North America President AdamMonroe said the proposal is crucial to biorefinery develop-ment as “the Senate debates the energy titles in the farm billand the tax policies we need to help get steel in the ground.”

Global production capacity of ethanol from cellulosicsources is projected to reach about 250 million gallons in 2014.A study by Bloomberg New Energy Finance indicates the U.S.could produce more than 18 billion gallons of ethanol annual-ly using less than 20 percent of available ag residues.

That would create 1.4 million jobs and reduce CO2 emis-sions from gasoline-based transportation by 11 percent. Thosenumbers would be even higher if biomass from forestryresidues, household waste, and energy crops were included.

Beyond building demand for farm residues and energycrops, industry sources at the recent National Ethanol Confer-ence suggested biomass power generation — either to fuelprocessing or as a marketable ethanol “co-product” — wouldimprove profit margins for biofuels plants.

Vince Kwasniewski, vice president of GTL Resources USA,which owns Rochelle’s Illinois River Energy ethanol plant,included plant electrical costs as a key factor in maximizingplant profit margins. Currently, “we’re generating about 25percent of our power” using steam, Kwasniewski said.

renewable energy” has nearlydoubled over the last 16 years,“and thousands of Americanshave jobs because of it.”

However, Vilsack wasuncertain whether the WhiteHouse’s energy push willtranslate to congressionalenergy funding, given Wash-ington’s current politicalenvironment. While he findsHouse and Senate ag com-mittees “relatively biparti-

san,” he sees deep divisionson the Hill.

“I don’t know what(House Ag Chairman) FrankLucas and (Senate Ag Chair-man) Debbie Stabenow cando — whether they cansprinkle fairy dust acrossthe Capitol to make whatev-er they did occur acrossCongress,” Vilsack toldFarmWeek. — MartinRoss

U.S. Rep. Jesse Jackson Jr., a Chicago Democrat, left, meets with Illi-nois Farm Bureau board members Chris Hausman, center, and RandyPoskin during an IFB visit to Capitol Hill. Jackson was supportive offederal issuance of biodiesel use requirements for 2013. (Photo byChris Magnuson)

production

FarmWeek Monday, March 5 , 2012

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2011 yield estimatesreflect weather issuesBY DANIEL GRANTFarmWeek

Crop farmers in 2011 encountered a host of challenges and thefinal county yield estimates recently released by USDA reflected thesituation as statewide yields were down compared to recent years.

The average corn yield statewide last year was 157 bushels peracre, the same as 2010 but down 17 bushels from 2009.

“The (corn yield) was well below average,” said Brad Schwab, statestatistician with the National Agricul-tural Statistics Service Illinois fieldoffice. “Some farmers I talked tohad issues with corn-on-corn acres.”

The soybean crop statewidelast year averaged 47 bushels peracre, down 4.5 bushels from 2010.

“We had a (hot) dry spell, and farmers really felt the impact,”Schwab said. “They didn’t see the grain fill (in the crops) theynormally would and in many cases the kernel size was smaller.Corn standing in water in the spring certainly didn’t help, either.”

Production in Illinois in 2011 totaled 1.95 billion bushels ofcorn, the same as in 2010, and 416 million bushels of beans,down 11 percent from 2010.

The drought that ravaged crops in July and August was themost severe in the southern two-thirds of the state. Subsequent-ly, six of the top 10 counties with the highest harvest yield aver-ages last year are located along or north of the Interstate 80 cor-ridor in Northern Illinois.

The top five counties with the highest corn yield averages areWoodford (186.5 bushels per acre), DeKalb (183.8), Carroll(183.3), Stephenson (181.6), and Stark (181.2)

The top five counties with the highest soybean yield averagesare Carroll (63.1 bushels per acre), Knox (61.2), Jo Daviess(60.3), Henry (60), and Woodford (59.9).

The harvest yield averages above and those listed in thegraphic are not what’s used as a trigger for certain types of cropinsurance. Harvested yields are calculated by taking total produc-tion and dividing it by harvested acres.

The trigger for some crop insurance policies is the plantedyield, which is calculated by dividing total production by thenumber of planted acres.

The top five counties in total corn production last year wereLaSalle (60.1 million bushels), McLean (58.3 million), Iroquois(56.1 million), Bureau (55.4 million), and Livingston (50 million).

The top five counties for total soybean production last year wereMcLean (14.3 million bushels), Livingston (13.2 million), LaSalle(12 million), Champaign (11.5 million), and Iroquois (11.2).

For other crops in the state, the average yield for the 2011winter wheat crop was 61 bushels per acre (up 5 bushels from2010); the average yield for sorghum last year was 91 bushels peracre (down 5 bushels from 2010).

The average yield for oats was 68 bushels (up 3 bushels from2010); hay production totaled 1.58 million tons (down 18 per-cent from 2010); and pumpkin production increased 22 percentlast year compared to 2010.

Farmweeknow.com

To learn more about 2011 Illi-nois county crop yield estimates,go to FarmWeekNow.com.

lawmaker connection

State Rep. Elaine Nekritz (D-Chicago), the “adopted legislator” of Winnebago County Farm Bureau,talks with, left to right, county Farm Bureau manager Roger Christin, county Farm Bureau board memberBrent Pollard, and county Farm Bureau President Earl Williams Jr. Hundreds of state legislators last weekdiscussed issues with Farm Bureau members at a legislator reception during the Governmental AffairsLeadership Conference. (Photo by Kay Shipman)

risk management


ASA, NCGA leadershiptargets risk management BY DANIEL GRANTFarmWeek

Leaders of the American Soybean Associa-tion (ASA) and National Corn Growers Associ-ation (NCGA) realize many areas of the federalbudget, including agriculture, likely face cutsthis year.

But one area the two groups believe shouldbe spared from the chopping block is federalcrop insurance.

ASA and NCGA last week at the CommodityClassic in Nashville stressed the importance ofrisk management tools, including crop insur-ance, as vital measures to protect farmers in ahighly volatile environment.

“We recognize the great challenge this nationfaces as we try to balance the budget andimprove the economy,” said Garry Niemeyer,president of NCGA and a farmer from Auburn.“But we don’t think cutting crop insurance is awise thing.”

Niemeyer said the past two growing seasons,which featured widespread flooding anddroughts that cut into crop yields and left somefields idle, serve as a reminder that farmers aredependent on insurance and other risk manage-ment tools.

Wild price swings in the commodity marketsand record-high input costs also have increasedthe amount of risk for farmers.

“We’re in a more vulnerable position to man-age those risks than ever before,” Niemeyer said.

Along with maintaining fed-eral crop insurance, NCGAalso called on Congress toinclude an aggregate risk andrevenue management plan inthe next farm bill.

“There is a tremendousamount of volatility,” theNCGA president said. “That’swhy we’re stressing risk man-agement, whether it’s crop

insurance or through farm bill policy.”ASA President Steve Wellman, a farmer from

Nebraska, echoed Niemeyer’s concerns and rec-ommendations.

“ASA strongly opposes cuts to crop insur-ance,” Wellman said. “Any cut to crop insuranceis a potentially crushing one for our industry.”

ASA also believes that despite budget con-straints funding should be increased for agresearch.

“It will expand beneficial research for nutri-tion, food safety, global food security, and bio-fuels,” he said.

Demand for soybeans and soy oil is forecastto increase by 75 percent by 2025, ASA report-ed.

ASA at the Commodity Classic also calledfor a retroactive extension of the biofuels taxincentive, which expired Dec. 31, and for amore efficient approval process for biotechproducts worldwide.

Garry Niemeyer

These two charts illustrate the growing popularity of revenue-based in-surance as a vehicle for maximizing risk management and crop market-ing opportunities in Illinois. With the exception of a slight dip in rev-enue-based policies in 2007 amid a surge in county-based Group RiskPlan (GRP) and Group Risk Income Protection (GRIP) policy purchases,demand for combined production/price protections — above includingnow-defunct Crop Revenue Coverage (CRC), Income Protection (IP), andRevenue Assurance (RA) policies and current Revenue Protection (RP)and Revenue Protection with Harvest Exclusion (RPHE) products — hasrisen steadily. Use of yield-only protections — basic catastrophic orCAT, Actual Production History (APH), and current Yield Protection (YP)policies — have declined correspondingly.

RMA issues crop insurance price, volatility factorsBY MARTIN ROSSFarmWeek USDA is prepared to setspring price guarantees forcrop revenue coverages. Now,the ball is in the farmer’s court.

Last week, USDA’s RiskManagement Agency (RMA)concluded its price discoveryperiod used to determinedfinal price and market“volatility factors” for cornand soybean insurance prod-ucts for 2012. March 15 isinsurance sales closing date.

Revenue Product (RP) baserevenue guarantees are tied to

across Illinois (see accompany-ing chart). Country Financialcrop insurance coordinatorBob Dewey notes “a lot ofuncertainty remains as to whatthe new farm bill will looklike,” and anticipation of farmdirect payment eliminationleaves revenue insurance as amajor income safety net.

“Farmers who protect theiroperations with crop insurancehave peace of mind knowingthey don’t have to worry aboutstaying in business the follow-ing year if low prices and/oryields impact their individual

operations,” he said.For guidance on policies,

coverage levels, and policyoptions, consult University ofIllinois insurance tools{www.farmdoc.illinois.edu/cropins/toolbox} and finalthoughts {www.farmdoc -daily.illinois.edu/2012/03/crop_insurance_decisions_in_20.html}.

Illinois Farm Bureau riskmanagement specialist DougYoder, walks farmers throughkey decision factors at{www.ilfb.org}, under theQuick Picks menu.

the February price. RP auto-matically offers producers thehigher of the February priceor an October price guarantee,unless they purchases RP witha “harvest price exclusion.”

For most of the Midwest,the projected price for corn is$5.68, while the 2012 projectedsoybean price is $12.55. That’scompared with $6.01 and$13.49, respectively, in 2011.

The projected price for cornis determined by averaging theclosing December futures priceduring February trading daysand for soybeans by averaging

November Futures closingprices. Projected prices do notreflect local basis.

Volatility factors — whichgauge potential price risk —are based on an average of themost recent five trading daysscaled for the period fromMarch 1 through mid-October.Corn and soybean volatilityfactors are considerably lowerthan in 2011, and that shouldhelp reduce premiums andweigh favorably on the valueof the harvest price option.

Revenue policies havegrown sharply in popularity

markets

Monday, March 5, 2012 FarmWeek

Ag economy could become more export-dependentBY DANIEL GRANTFarmWeek

Farmers this year and inthe future could becomeeven more dependent on agexports to maintain prof-itable commodity prices, par-ticularly if farmers plant 94million acres of corn thisspring as predicted byUSDA.

Ag leaders last week at theCommodity Classic inNashville emphasized theimportance of expandingtrade.

“It looks like we couldhave a large crop, whichmeans a lot more supply,”Wendell Shauman, chairmanof the U.S. Grains Council(USGC), a farmer from Kirk-wood, and former IllinoisFarm Bureau board member,told FarmWeek.

“We’ve seen such largeexpansion in the use ofcorn for ethanol in the past,but it’s pretty wellplateaued,” he continued.“If we keep expanding(corn) production, we neednew markets.”

And it appears some ofthe best opportunities toexpand sales of U.S. cropand livestock products lieoverseas.

A recent USGC reportentitled “Food 2040” pro-jected affluent Asian con-sumers will drive food

demand in the future. Thepopulation there is growing,and higher incomes willresult in stronger demand formore meat-based protein,according to the report.

“The remarkable growthposes a challenge,” said TomDorr, president and CEO ofUSGC. “Asia is the least able(region of the world) toincrease its feed grain pro-duction because it has a verydense population and a verylimited natural resourcebase.”

The growth in food pro-duction likely will be centeredin North and South America,he said.

“The bottom line is tradewill be the solution (to meetgrowing food demand),”Dorr said. “The U.S., Brazil,and Argentina will be the keysuppliers.”

Infrastructure updates willbe vital, though, for the U.S.to maintain a competitiveadvantage and boost its agexports.

The expansion of thePanama Canal means largerships will be able to increasecapacity from 4,500 contain-ers per vessel to 14,000,according to Dorr. USGCrecently held an internationalmarketing meeting in Panamaand toured the expansionproject.

“It’s going to change the

distribution system,” Dorrsaid. “We have a legacyinfrastructure in the U.S.,which we need toupgrade.”

The U.S. currently hasjust one port that will beable to accommodate thelarger cargo ships, accord-ing to Roy Bardole, chair-man of the U.S. Soy ExportCouncil.

“The rest of the world ismoving forward,” Shaumansaid. “Panama decided in2004 to modernize the canaland in two more years the jobwill be done.

“We’ve been talking aboutimproving our locks anddams here since at least themid-1990s,” he continued.“And, so far, we’ve donebasically nothing.”

Farm leaders at the Com-modity Classic also called onCongress and the Obamaadministration to continue tonegotiate free trade agree-ments.

“Trade agreements thatsignificantly improve accessto foreign markets are a mainfocus of ASA,” said SteveWellman, president of theAmerican Soybean Associa-tion.

The U.S. this year is pro-jected to export $131 billionworth of ag products, whichwould be the second-highesttotal on record.

U.S. eyes TPPexpansion, Russia,EU ‘relationship’BY MARTIN ROSSFarmWeek

The U.S. Trade Representative’s (USTR) office has its eyeon more meaningful relationships with Japan, Russia, and theEuropean Union. But the U.S. requires a two-way street fromprospective partners, according to a USTR deputy.

Implementation of South Korea, Colombia, and Panamafree trade agreements (FTAs) and East-West talks toward anew Trans-Pacific Partnership (TPP) agreement are “the maininitiatives we have going forward,” USTR Deputy Assistant forAg Affairs Roger Wenzel told Illinois Farm Bureau leadersrecently.

Wenzel said his agency is pushing for a 2012 accord under“pluralateral” TPP negotiations, which currently include ninenations. The U.S. has FTAs with Australia, Chile, Peru, andSingapore, and hopes to forge new relations with Brunei,Malaysia, New Zealand, and Vietnam through TPP.

Canada, Japan, and Mexico currently are exploring member-ship. That requires a unanimous consensus of TPP countries;USTR has solicited comments from various U.S. “stakehold-ers” regarding acceptance for the three “aspirant countries,”Wenzel said.

While the U.S. welcomes the interest of these countries, hestressed there will be some issues, particularly with Japan.

He noted concerns about Japan seeking TPP “exclusions”for imports of key domestically grown commodities such asrice.

December accession of Russia to the World Trade Organi-zation (WTO) poses its own challenges.

WTO membership should help ensure Russia “operatesunder internationalrules and standards ina more coherent way”and allow the U.S. to“litigate” trade dis-putes, Wenzel said.That should give theU.S. leverage in deal-ing with Russian barri-ers to pork, poultry,and other Americanimports, he said.

But to achievethose gains, Congressmust pass legislationapproving permanentnormal trade relations(PNTR) with Russia.PNTR officially recognizes Russia’s WTO status, and withoutit, “in a sense, we would be taking exception to a WTO mem-ber,” Wenzel warned. That could relieve Russia’s obligation tohonor WTO rules in U.S. dealings “because we’re not recipro-cating,” he said.

At the same time, Wenzel held WTO membership alone isnot enough for the U.S. to let down its guard. “We would want(Russia) to start behaving in an appropriate fashion rightaway,” he said.

USTR will continue to be “very aggressive on the enforce-ment front.” “When other countries aren’t living up to theirobligations, we’re doing something about it,” Wenzel said.

The agency also is looking at ways of “deepening theU.S.-European trade relationship.” A bilateral workinggroup is exploring options including a possible FTA, “sec-toral” initiatives that address individual trade concerns, andgreater mutual discussion of regulatory issues related toimports and exports.

Meanwhile, Wenzel said U.S. officials haven’t given up onhopes of a successful multilateral WTO agreement.

But he maintained a different approach is needed to revivethe talks, arguing larger developing countries such as Brazil,India, and China must “step up to the plate” and offer greatermarket access.

‘When other countriesaren’t living up to theirobligations, we’re doingsomething about it.’

— Roger WenzelUSTR deputy assistant for ag affairsCorn and soybeans could undergo a role

reversal this year in the crop markets if recentUSDA projections come to fruition.

USDA at its recent Ag Outlook Forum pro-jected a large increase in corn production, asubsequent run-up in corn stocks later this year,and a decrease in corn consumed by the ethanolindustry.

Meanwhile, USDA projected record soyexports in 2012/13 (1.55 billion bushels), an 8-million-ton (296 million bushel) decline inSouth American soybean stocks this year com-pared to last year, and no change in soy plant-ings (75 million acres) in the U.S. this springcompared to 2011.

U.S. corn plantings this spring, on the otherhand, were projected to reach the highest total(94 million acres) since 1944.

The projections could change the currentmarket dynamics which favor corn over soy-beans and other crops.

“Soybeans may be taking on more of a priceleadership role among major crops,” said EdAllen, ag economist with USDA’s EconomicResearch Service.

“We’re expecting a significant decline (20percent) in corn prices (with a projected season-average price of $5 per bushel) and for wheatprices to be down significantly (13.7 percent) aswell,” the economist noted.

“Soybean prices, however, have a separatestory which could be helped by productionproblems in South America.”

USDA projected soybean prices this year willremain strong with a season-average price of$11.50 per bushel, which would be down just1.7 percent from last year.

The price projections are expected to changethe corn/soybean ratio.

“The soybean price has come up a little bitcompared to the price of corn,” said JoeGlauber, USDA chief economist. “Moving for-ward, a lot will depend on what the SouthAmerican crops look like.”

The news wasn’t all good at the OutlookForum for soybean price prospects, though.USDA projected total ag exports to China coulddecline from $19.9 billion last year to $17 bil-lion this year mostly due to a reduction in soy-bean and cotton shipments.

Oliver Flake, economist with USDA’s ForeignAg Service, noted exports to China the firstquarter of this fiscal year were down $1 billionfrom the previous year as Brazil and Argentinaincreased soybean sales to China, taking salesthat otherwise may have originated from the U.S.

“Overall, (soy) demand in China hasremained steady,” Flake said. “We just lost out(on export sales) the first quarter of the fiscalyear.” — Daniel Grant

Soybeans could become more of a market leader

Food ISSUES



Specialty crop growers withany size operation will have twoopportunities to meet a varietyof buyers March 27 in Cham-paign County and April 4 inWilliamson County.

The two meet-the-buyerevents will include educationalsessions, according to CynthiaHaskins, Illinois Farm Bureaumanager of business develop-ment and compliance.

The mix of businesses repre-sented will include grocerystores, food cooperatives, foodbanks, restaurants, and foodservice distributors.

“There will be something foreveryone. For someone with justenough to sell to one store, wewill have buyers, and for otherswith more volume, they haveopportunities,” Haskins said.

Mike O’Brien, vice presidentof produce and floral withSchnucks Markets Inc., said rep-resentatives of his company willattend both events and are inter-ested in meeting new growers,especially in the Central Illinoiscorridor.

Locally grown foods “is avery important program and isimportant to our customers,”O’Brien said.

Marcia Whelan, marketingand community relations spe-cialist with Whole Foods MarketTown and Country, said hercompany is interested inexpanding the local foods itoffers customers and storeemployees.

Based on its customerdemand, Whole Foods buyslocally grown food to supportlocal farmers and the economy,Whelan added.

The March 27 event will runfrom 8:30 a.m. to 5 p.m. at theChampaign County FarmBureau, Champaign. It will behosted by the county FarmBureau and the University ofIllinois Extension. Other collab-orators include Central Illinoiscounty Farm Bureaus, IFB, andthe Illinois Specialty GrowersAssociation (ISGA).

March 22 is the deadline formaking reservations to theChampaign event. They may bemade by calling 217-352-5235.

The April 4 event will runfrom 8:30 a.m. to 5 p.m. at theJohn A. Logan Community

College (JLCC), Carterville.March 30 is the deadline formaking reservations for thatevent, and reservations may bemade by calling 618-993-2609.

Event organizers includeIFB, U of I Extension, ISGA,JLCC, the office of Lt. Gov.Sheila Simon, Illinois Depart-ment of Commerce and Eco-nomic Opportunity, IllinoisRural Development, ConnectSI Foundation, and countyFarm Bureaus in Williams, Jack-son, Union, and several coun-ties throughout Southern Illi-nois.

At both events, farmers willhear individual presentations byeach buyer. After each con-cludes, there will be opportuni-ties for one-on-one meetingswith farmers, who then can fillout applications with detailsabout their crops and otherinformation about their opera-tions.

With the farmers’ permis-sion, the completed applica-

tions will be sent to the buyersin which the farmers were inter-ested.

Haskins recommendedfarmers who have businessfliers or business cards bringthem for the buyers; however,the applications will providebuyers the needed information,she noted. Farmers are not tobring any product samples.

Two separate seminars aboutfood hubs will be held from 7to 9 p.m. on the same days andat the same locations. Farmerswho want to learn about foodhubs and explore collaborativeopportunities are encouraged toattend.

Register for the Champaignfood hub seminar by contactingthe Champaign County FarmBureau and for the Cartervilleseminar by contacting theWilliamson County FarmBureau.

Growers invited to meet buyers at two meetings

Food price inflation projected to moderateBY DAN GRANTFarmWeek

U.S. consumers likely willpay more for their groceriesthis year, according to the lat-est USDA projection.

But the boost in food pricesis expected to be more modestthis year after nearly a 5 per-cent increase in 2011.

“Food inflation has begunto abate a bit,” Joe Glauber,USDA chief economist, saidrecently at the USDA Ag Out-look Forum. “That’s very goodnews for U.S. households.”

USDA’s Economic ResearchService (ERS) recently project-ed food prices this year willrise by 2.5 to 3.5 percent,which is in line with the 10-year average and down from

4.7 percent last year.“It’s unlikely we’ll see a one-

two punch like we saw in 2007and 2008 (when food pricesjumped by 4 percent and 5.5percent, respectively),” saidRichard Volpe, ERS econo-mist.

In fact, food price inflationover the past four decadesactually moderated despite therecent spikes. The annualincrease in food prices in thedecades of the 2000s and1990s averaged 2.8 percentcompared to 4.6 percent in the1980s and 8.1 percent in the1970s.

“We expect food price infla-tion will come down in 2012and beyond,” Volpe said.

The retreat in food price

inflation this year is due in partto the expectation of largercrop production from farmersaround the world.

In the U.S, farmers wereforecast to boost plantings by2.1 percent for corn and 3.5percent for wheat.

Meanwhile, USDA project-ed a slight decline in corn usedfor ethanol production.

“Crop prices are projectedto retreat from (the recent)peak, but not decline back topre-spike levels,” said RonTrostle, ERS economist. “Butwe do not see meat pricesdeclining as we do for crops.”

Meat prices this year, simi-lar to last year, are projected topost the largest price increasesof any food.

Prices in 2011 jumped by10.2 percent for beef, 8.5percent for pork, and 7.1percent for seafood.

This year, beef and fishprices were projected to rise4 to 5 percent while porkand poultry prices were fore-cast to rise by 3 to 4 percent.

ERS said higher meatprices are the result of tightsupplies and boomingdemand.

“World per capita meatconsumption from 1975 to2010 increased by 28 pounds

per person,” Trostle said.“That’s a fairly astonishingtrend.”

Meanwhile, he continued,“When the world economystarted to grow again in2010, cattle and hog produc-

ers weren’t in very goodposition to respond.”

The U.S. cattle herd, as ofJan. 1, totaled just 90.8 mil-lion head, which was thelowest herd size for thattime of year since 1952.

‘ T h e r e w i l l b es o m e t h i n g f o reveryone.’

— Cynthia HaskinsIllinois Farm Bureau

sustaining ag


Attorney: Florida ruling challenges ‘bad science’BY MARTIN ROSSFarmWeek

A Florida ruling offers“good precedent with regardto bad science” and potentialag ammunition in the effort torein in questionable federal“clean water” rules, accordingto an attorney with a nationallegal advocacy group.

A Tallahassee U.S. DistrictCourt ruled Environmental Pro-tection Agency (EPA)-imposednutrient criteria for Floridastreams and lakes are unlawfuland have no scientific basis.

The ruling addressednumeric nutrient criteria, a key

where ... as the agency is set-ting nutrient criteria orTMDLs (nutrient total maxi-mum daily load requirements)in another area,” he toldFarmWeek.

EPA has until May 21 torevise numeric nutrient criteriafor Florida. AFBF favors aplan by the state’s Departmentof Environmental Protection.The federal Clean Water Actspecifically grants states “thepower to decide how toachieve water quality stan-dards,” AFBF’s Steen said.

AFBF also has asked thecourts to rule on TMDL rules

for the six-state ChesapeakeBay region. A new Universityof Delaware study found poul-try manure and nitrogen levelsin the bay to be lower thanEPA estimates, a result, thestudy said, of management,feed, and genetic advancesover the last 30 years.

Noting Chesapeake-styleconcerns in the Los AngelesBasin, Hopper sees nutrientstandards as “a hot enoughissue” to spur further caseswithin the federal appealscourts and possibly an eventu-al hearing before the U.S.Supreme Court.

issue in controversial Chesa-peake Bay watershed standardsand concerns about similarplans for the Mississippi RiverBasin.

The court held EPA couldnot show its criteria for regu-lating streams were needed toprevent environmental harm –a requirement of Florida law.

It challenged attempts toprohibit any increase above nat-urally occurring nutrient levelsin so-called “pristine waters,”questioning the assumption“that any increase ... is harm-ful,” according to AmericanFarm Bureau Federation Gen-

eral Counsel Ellen Steen.M. Reed Hopper with the

Pacific Legal Foundation’sEnvironmental PracticeGroup, was unsure whatimpact the ruling would haveon future EPA policy. EPAtypically uses rulings in itsfavor as precedent elsewherebut tends to “isolate theimpact of adverse decisions,”he said.

As a district case, the Talla-hassee ruling has limited“precedential value” on anational level, Hopper added.

“But the logic of the deci-sion can be persuasive any-

Group exploring the characteristics, uses of biocharBY KAY SHIPMANFarmWeek

Much remains unknownabout possible field uses forbiochar, but the IllinoisBiochar Group is exploringresearch data and field trials.

Biochar is a high-carbon,fine-grained, porous materialproduced from biomass usinglow temperatures and low-oxygen combustion. Thematerial is different fromcharcoal, which is producedfrom heat and mainly used asfuel.

“There are still a lot ofunknowns” about biochar

biochar benefits, according toHolm. Soils high in organicmatter may benefit less frombiochar compared to soilswith less organic matter.

In addition to beneficialsoil properties, biochar also isbeing studied for its potentialto sequester carbon in the soiland its absorption propertiesas a landfill cover.

As one of the few biochargroups in the Midwest, theIllinois group has membersfrom Iowa, Minnesota, andWisconsin. The group postsresearch results, studies, andrelated information online at{www.biochar.illinois.edu}.Holm may be reached by e-mail at [email protected] by phone at 217-244-3330.

uses in Illinois, said thegroup’s coordinator, NancyHolm of the Illinois Sustain-able Technology Center.

“There are some character-istics that are helpful, such asretaining water (in soil) andretaining nutrients ... Therealso is the potential for harm-ful products.”

Biochar isn’t a uniformproduct and much depends onthe feedstock used in its pro-duction and the preparationand storage methods, Holmpointed out.

She said the group hasfielded questions about

biochar from farmers and gar-deners who are interested inusing it as a soil amendment;however, the Illinois BiocharGroup advises interested indi-viduals to start with smallbiochar test plots.

“We don’t want people touse this if it will harm theircrops,” she said.

Soil types also influence

Federal safety efforthelpful or misdirected?

The 2010 deaths of two teens at a Mount Carroll elevatorcontinues to cast ripples throughout both rural communitiesand the Illinois grain industry.

But Greg Weidner, manager of Demeter Grain’s SouthBeloit elevator, is concerned some federal efforts in the wakeof the tragedy could disruptrather than strengthen theindustry and deprive youngpeople of employment.

Weidner, who lobbiedwith other agribusinessinterests recently on CapitolHill, is concerned about avariety of issues, from thepotential impact of newcongressional financialreforms on grain handlersand their customers to proposed new Department of Labor(DOL) ag child labor rules.

A 19-year-old Haasbach LLC elevator employee suffocatedwhile trying to free a 14-year-old from stored corn at theMount Carroll facility in July 2010. He also perished.

Weidner stressed that, “as a commercial elevator, we’re verycognizant of safety” — Demeter Grain prohibits bin entry byteens.

“We’re very serious about that,” Weidner told FarmWeek.He is concerned DOL’s subsequent push for more stringent

restrictions on chores younger teens can perform around grainstorage facilities could prevent youths from taking non-haz-ardous “good teenager jobs” such as remotely operating grainscales, sweeping driveways, painting, or trimming shrubs.

In a small community, “we’re one of the major employers,”particularly for adolescents, he said. — Martin Ross

‘We’re one of thema jo r emp loy -ers.’

— Greg WeidnerDemeter Grain

master farmers


Four Illinois Farm Bureau members named Master Farmers Four Illinois farmers, all

Illinois Farm Bureau mem-bers, have been selected as2012 Master Farmers byPrairie Farmer magazine. Thefour will be honored at aceremony in BloomingtonWednesday.

Award recipients are ScottBidner, Champaign (Cham-paign County); Tim Lenz,Strasburg (Shelby County);Tim Seifert, Auburn (Sanga-mon County); and Mel VonBergen, Hebron (McHenryCounty).

Candidates are nominatedby farmers, agribusinessleaders, and agriculturalExtension specialists fromthroughout the state.

Prairie Farmer firstoffered the award in 1925,when editor Clifford Gre-gory established it as a way

operates, and sent his oldestoff to college.

Bidner worked as the firstdirector of market develop-ment and later as executivedirector for the Illinois CornGrowers Association andIllinois Corn MarketingBoard, then spent five yearsin the office of internationalactivities with the U.S. EPA.

Tim Lenz: His commit-ment to farming followed

him all theway throughthe Universi-ty of Illinois.After gradua-tion, he waspresentedwith a joboffer as an aglender inWestern Illi-

nois. Instead, he chose tocome back to Shelby County,where he could work as abanker and still maintain thefamily farm.

When the father of Lenz’swife, Delreen, offered himthe opportunity to become afull-time farmer, Lenz happi-ly signed on. Despite farm-ing nearly 3,000 acres, he stillfinds time for everythingfrom coaching fifth gradebasketball to leading the Illi-nois Corn Growers Associa-tion as its president in 2010.

Lenz’s enterprise rests pri-marily on his shoulders. DonSchmidt (his father-in-law)and dad, Larry, still helpfarm. Tim also has a long-time friend and employee,Rick Wallace, who also workson the farm. He doesn’t hireany seasonal help.

Tim Seifert: A naturalcuriosity led him to devote30 acres to small-block

research forMonsantoand anotherfive acres forUniversity ofIllinoisresearchersto look atseed traits,chemistries,population,

nitrogen management, andnew technologies.

“It’s so we can pass thatinformation on to the rest ofmy farming operation,”Seifert said. “We had Smart-Stax here on the farm beforeit was even released.”

Seifert began farming withhis father, Ed, back in highschool. He rented his firstfarm in 1982 and still farmsit today. Over time, he andhis wife, Roxy, bought outhis father, who officiallyretired in 1999, though hestill enjoys helping in springand fall. Today, they raisecorn and soybeans and

employ two full-timeemployees, Al Bailey andCody Mohler.

Seifert has practiced con-servation tillage since 1982.He has installed many water-ways and controlled struc-tures as needed, and has 200acres of terraces. He striptills all of his corn and usesminimum till on soybeans tomaintain at least 35 percentresidue. The Seiferts applynitrogen in four differentshots: a small amount in thefall, 10 gallons pre-plant,three gallons of starter, andthe rest as sidedress.

He grows a combinationof GMO corn and food-grade white and yellow corn,which is shipped into theChicago food system. Hisalso grows 100 percent ofhis bean crop as seed forMonsanto and Pioneer.

Mel Von Bergen: Grow-ing up, Von Bergen’s family

farmed just acouple mileseast of whereO’Hare Inter-national Air-port now sits.In 1946, hisparents pur-chased a farmwest ofO’Hare. Fif-

teen years later they sold thatland for use as a shoppingcenter.

The family then moved toMcHenry County, settlingnear Hebron. Von Bergenmarried Bobette Shulz in1965 and they moved justdown the road and struckout on their own farmingenterprise and are still farm-ing in the Hebron area,growing vegetables and cashgrain crops. Their freshproduce offerings draw awealth of Chicago visitorsen route to Wisconsin’sLake Geneva.

When Von Bergen got intothe vegetable business some30 years ago, produce standswere plentiful in the sur-rounding Chicago area.Today, produce stands arebecoming few and farbetween as most plant lesslabor-intensive crops.

Von Bergen says conversa-tions with urban visitors areusually enjoyable, as long asthe inquiring mind is actuallywilling to learn about agricul-ture. “We enjoy the interac-tion,” he noted.

The Von Bergens are inthe midst of turning thereigns over to the next gener-ation in the line of VonBergen farmers — son Mikeand daughter-in-law, Tracie,now tend 1,400 acres, 100 ofwhich are dedicated to freshproduce.

to recognize Illinois farm-ers for something morethan just farming skills.Gregory felt the awardwould help give farm peo-ple a greater sense of“pride and permanence.”

All together, more than300 Illinois people, includingthe four named this year,have been named MasterFarmers or honorary MasterFarmers.

GROWMARK Inc. servesas financial sponsor of theaward. Like the MasterFarmer award, the GROW-MARK system was born dur-ing the 1920s when farmercooperatives first organizedthe Illinois Farm Supply Co.Today, the brand is known asFS.

The 2012 Master Farmersare:

Scott Bidner: After acareer that took him fromthe top management of theIllinois Corn Growers Asso-

ciation andthe IllinoisCorn Market-ing Board tothe halls ofthe U.S. EPAin Washing-ton, D.C.,Bidnerreturnedhome to farm

with his aunt and uncle.Sixteen years ago Bidner

and his wife, Karen, foundthemselves with a toddler athome and twins on the way,living in D.C. and yearning tomove back to Illinois.

“I feel blessed to be ableto farm,” Scott said, “and Icouldn’t have been more sur-prised when my aunt anduncle offered me the chanceto farm.” His uncle, RichardRayburn, was named a Mas-ter Farmer in 1986.

Since then, he has boughtout his uncle’s equipmentline, increased the acreage he

Scott Bidner

Tim Seifert

Tim Lenz

Mel Von Bergen

illinois initiative


Administration proposes escalating Asian carp effortsBY MARTIN ROSSFarmWeek

The Obama administrationhas released a 2012 Asian CarpControl Strategy Frameworkoutlining 58 new actions thatbuild on efforts to protect theGreat Lakes from Asian carp.

That effort is deemed crucialto Midwest officials, conserva-tion and sporting groups wor-ried about the voracious carp’simpact on the Great Lakesecosystem, and commercialinterests that have fought pro-posals to close key Chicago-area locks and potentially hin-der Midwest navigation.

“A lot of people care and aretrying to make progress,” U.S.Army Corps of EngineersGreat Lakes/Ohio River Divi-sion Commander MargaretBurcham told FarmWeek.“Everything points to the factthat the temporary steps we’retaking are working.”

The division commanderworks with the Asian CarpCoordinating Council, whichalso includes representatives ofthe U.S. Fish and Wildlife Serv-ice and the Illinois Departmentof Natural Resources. TheWhite House Council on Envi-

carp, environmental DNA(eDNA) sampling to determinepossible presence of fish in anarea, and habitat assessment.Indiana built a fence across onemarsh to prevent transfer ofcarp into the Great Lakes in theevent of flooding.

• Field-testing of tech-nologies to eradicatespecies, as well as methods

to reduce carp breeding.• Efforts to reduce uncer-

tainty regarding eDNA results.“If we were to find DNA, it

doesn’t mean we have the fish,because there are different waysDNA can be introduced intowaterways,” Burcham stressed.“It could be through wastewaterthat contains DNA from fish inanother location.”

ronmental Quality monitorsstate and federal efforts.

The administration recom-mends:

• Continuing a Great Lakesand Mississippi River InterbasinStudy to identify cost-effectiveand efficient ways to preventmovement of the carp and oth-er “aquatic nuisance species”between the Mississippi systemand the Great Lakes. The studyis to be completed by fall 2014.

An interim report has identi-fied 90 known technologies thatcould prevent species transfer.

• Evaluation of an existingelectric barrier between the Illi-nois River and the Chicagowaterway system, through fishtagging and sonar equipment.At this point, Burcham sees thebarrier as “insurance”: “TheAsian carp has not reached thatbarrier yet — it may be about57 to 60 miles south.”

• Initial construction of apermanent electric barrier toreplace the original one built in2002.

• Partnering with commercialfishermen and industry. Asiancarp is favored by Asian con-sumers, and Corps programdirector Hiroshi Eto said New

Orleans chefs are experimentingwith the fish. Eto also cited talkof using carp in fertilizers.

Meanwhile, Illinois officialshave encouraged fishermen toincrease carp harvest. “That’snot going to be the whole solu-tion, but it is reducing the popu-lation,” Burcham said.

• Development of long-termmanagement strategies for Asian


Throughout early 2012, the eight IllinoisFarm Bureau GrassRoots Issue Teams(GRITs) have studied current issues andpolicy.

Their report was accepted by the IFBboard at its February board meeting.

In that report, the Crop Productionand Trade Team recommended IFBcontinue to pursue common-sensesolutions for state and national truckingregulations and encouraged the organiza-tion to work with other associations, groups,and agencies on the issues.

The team also encouraged IFB to continuemonitoring the Grain Inspection, Packers, andStockyards Administration (GIPSA) reforms andongoing developments.

The Rural Life Team is considering the feasi-bility and usefulness of a statewide study onlocal government structure and finance with agoal of improving local government efficiency.

IFB conducted a local government studyin 1968.

Other issues discussed by the teamsinclude local food initiatives, crop insur-

ance, equine-related projects in educationcurriculum, and immigration.

Team members are being encouraged togain grassroots input on those issues and

others for team discussions.Teams will meet again in the near future

before completing their final report to be pre-sented to the IFB board at its May meeting.

For more information on GRITs or how youcan have input on the issues they are studying,contact your county Farm Bureau.

IPT bull salepulls record $$

The Illinois Performance Tested (IPT) Bull Sale recently gen-erated the highest overall average price in the 44-year history ofthe event — $3,445 on 77 lots.

This exceeded the 2010 sale by $907 and the record 2011average by $465.

The sale was the leadoff event of the 2012 Illinois BeefExpo. The University of Illinois Extension, U of I Departmentof Animal Sciences, and consigning breeders sponsor the sale.Vita Ferm, Illinois Angus Association, and Illinois SimmentalAssociation also provided support.

This sale has developed into one of the largest performancetested bull sales in the Midwest. During the past 44 years, 4,458bulls valued at more than $7.5 million dollars have been sold atthe event, according to Dave Seibert, bull sale manager. Therewere four breeds — Angus, Simmental, Polled Herefords, andRed Angus — represented in the 2012 sale.

A highlight of the sale was a yearling Angus from KramerAngus, Farina, that was sold to Alta Genetics, Watertown, Wis.,for a new IPT Bull Sale record of $8,800.

Meanwhile, a Rincker Simmental of Shelbyville senior divisionbull sold for $8,000 to Patyk Farms and Livestock of LaSalle. Thiswas the third-highest price ever of the bulls sold at the bull sale.

The Simmental breed had its most successful sale ever with 19bulls averaging $3,684. This exceeded the previous high averagefor Simmentals of $2,565 set in 2008.

Three Polled Herefords were sold and had the second-highestbreed average in the sale at $3,467. Their average price was $750higher than the 2011 sale.

Producers interested in viewing a breakdown of all the pricesmay visit the Illinois Performance Tested Bull Sale website at{www.IPTBullSale.com}.

Also included on this site are the individual bull prices from the2012 sale and the numbers and averages from the previous 43 sales.

Seedstock breeders interested in consigning to the 2013 saleshould call Seibert at 309-339-3694, send a request to [email protected], or write to 300 North Street, Washington, IL61571 to request a hard copy of the rules and regulations and anomination form.

GrassRoots Issue Teams study challenges, issues

FB IN ACTION


FOOD CHECK-OUT WINNERS

As Capt. Cornelius looks on, Galesburg radio personality Eric Hanson of FM95, right, gives teammateAmanda Lamb of Galesburg a high five after winning a grocery race celebrating Food Check-OutWeek. Julie Butler of Cameron and FM95 morning co-host Ted Bevenour, left, earned second place.

Food Check-Out Week commemorates the week inwhich the average family of four has earned enoughmoney since Jan. 1 to pay for a year’s worth of food.The Knox County Farm Bureau and the local CornGrowers association organized a grocery race that

was broadcast live on the FM station. At the conclusion of the race, at Galesburg’s East Main StreetHyVee store, $215 worth of food items containing corn had been collected for donation to the localfood pantry. (Photo by Joanie Stiers)

BY CHRIS BUNTINGThree Hamilton County

food pantries have about 2,500pounds of food that can be dis-tributed to the needy, thanks toFarm Bureau volunteers in thecounty.

As part of the “Farmers andFriends Feed the Need” event,16 shoppers and seven addi-tional Farm Bureau volunteerscollected 2,220 food itemswhich were divided among thethree pantries.

The shoppers used a combi-

nation of coupons, in-storespecials, and personal thrifti-ness to get the largest amountof food possible in two hoursof shopping.

The shoppers were given$100 each prior to beginningshopping, and the shopper whopurchased the most with his orher funds at each store receiveda $200 gift certificate.

Second prize was a $50 giftcertificate.

First and second place win-ners, respectively, at Tom’sPriced Right Foods were ChrisTaylor, who spent exactly $100and purchased 383 items, and

Josh Gibbs, who bought 94items and had 14 cents left ofhis allotted funds. Both arefrom McLeansboro.

At the Food Park, therespective first and secondplace winners were LindaBlackwell, who purchased 170items and had 7 cents left, andAbby Reynolds, who purchased135 items and had 73 centsremaining. Both also are fromMcLeansboro.

The Hamilton County FarmBureau organized the event andcollected donations from thefollowing sponsors to providefunds for the shoppers: 4REquipment, McLeansboro;Peoples National Bank; Coun-try Financial agents TedBroyles, Bret Vaughan, and RayMelton; and Schilling Farms inDalhlgren.

County Farm Bureau Presi-dent Larry Schilling praised thevolunteers, stores, and spon-sors.

“We need to support ourcommunities locally. Everyoneis talking about world hunger.We need to fight the battle hereat home first,” he said.

Chris Bunting is manager ofHamilton County Farm Bureau. Hecan be reached at 618-643-2347.

FB volunteers collect2,500 pounds of food

BRACING FOR A CRASH

Marlene McIntosh of Springerton collects food items while participatingin a recent shopping event in Hamilton County to collect food for distri-bution by three local food pantries. (Photo by Chris Bunting, HamiltonCounty Farm Bureau manager)

Ford-Iroquois Farm Bureau member Robert Lindgren braces for anabrupt stop as Illinois State Police officer N.L. Baker, a safety educa-tion officer, prepares to release a cart that will travel at 7 mph. Theseat belt demonstration was offered during the Illinois Farm BureauGovernmental Affairs Leadership Conference in Springfield lastweek. (Photo by Kay Shipman)

from the counties


Farm” meeting will be at 7p.m. Wednesday, March 21,at the Farm Bureau office.Landowners will learn abouteasement agreements relatedto public utility or pipelineprojects crossing their landand if there is an existingeasement agreement ontheir property. Call theFarm Bureau office at 815-857-3531 or [email protected] by Fri-day, March 16, for reserva-tions or more information.

• Farm Bureau will offerLee County plat books for$20 each or two for $30 dur-ing the month of March inhonor of Illinois FarmingMonth. Call the FarmBureau office at 857-3531for more information.

MASON — FarmBureau personnel

will visit second and thirdgrade students in the countythe week of March 12 witha lesson about what cropsare grown in the county andwhat byproducts come fromthose crops. Farm equip-ment will be taken to theschools so students canhave a hands-on experience.

MENARD — FarmBureau will donate

agriculture books to thelocal public libraries duringthe month of March.

MERCER — FarmBureau and the

Mercer County HealthDepartment will sponsor amen’s health breakfast from8 to 11 a.m. Wednesday atthe First Baptist Church,Aledo. Free blood pressurechecks, prostate cancerscreenings, and smokingcessation tips will be given.Call the Farm Bureau officeat 309-582-5116 for moreinformation.

• An “On the Road” sem-inar will be at 10 a.m. Mon-day, March 12, at theReynolds American Legion.Kevin Rund, Illinois FarmBureau senior director oflocal government, will bethe speaker. Call the FarmBureau office at 309-582-5116 by Friday for reserva-tions or more information.

• The Mercer CountyFarm Bureau Foundationhas scholarships availablefor high school seniors andcurrent college students.Applications are availableon the website {www.mer-cercfb.org}. Deadline toreturn applications is March31. Call the Farm Bureauoffice at 309-582-5116 formore information.

PEORIA — A marketseminar will be at 8

a.m. Wednesday at Exposi-tion Gardens, Peoria. JohnRoach, agribusiness consult-ant, will be the speaker.Call the Farm Bureau office

at 686-7070 for reservationsor more information.

• The Prime Timers willmeet at 1 p.m. Wednesday atthe Farm Bureau auditori-um. Brian Puetz, IllinoisFarm Bureau regional man-ager, will give a presentationon his recent trip to theHoly Land. Call the FarmBureau office for moreinformation.

• The Farmers Share ofthe Food Dollar breakfastwill be from 7 to 11 a.m.Saturday at the Youth ExpoBuilding, Exposition Gar-dens, Peoria. Cost for apancake breakfast withsausage, eggs, milk, andjuice will be 85 cents. Adrawing for a Kroger giftcard will be made. Twohundred color photos fromthe Farm Bureau photo con-test will be displayed, andfarm equipment dealers willexhibit tractors. Ron Was-son, rural Peoria County,will have an educationalexhibit featuring live minia-ture farm animals. A silentauction to raise funds forthe Peoria County FarmBureau Foundation will beheld. Soy candles, lotionmade from soybeans, clean-ers made from corn, andnew 2012 plat books will beavailable for purchase. Callthe Farm Bureau office at309-686-7070 for moreinformation.

SHELBY — TheYoung Farmers will

sponsor a farm-city break-fast from 6:30 to 8:30 a.m.Thursday at the ShelbyCounty 4-H Center, Shel-byville. A menu of biscuitsand gravy, scrambled eggs,bacon, mixed fruit, juice,milk, and coffee will cost 80cents.

STARK — FarmBureau will sponsor a

bus trip Wednesday, April11, to the Abraham LincolnPresidential Museum,Springfield. The day tripwill include lunch on yourown at Cracker Barrel, aguided tour of the museum,and bus transportation. Costis $65, which is due Monday,March 12. Call the FarmBureau office at 286-7481for more information.

STEPHENSON — Asecond bus trip to

John Deere HarvesterWorks, John Deere Pavilion,and Kinze Manufacturingwill be Wednesday, March28. The bus will leaveFreeport at 6 a.m. Detailsare available at the website{www.stephenson cfb.org}.Call the Farm Bureau officeat 815-232-3186 for reserva-tions.

• Only a few seatsremain for the June 5 Cubsvs. Brewers game in Mil-

85 cents per gallon with amaximum of 10 gallons percustomer. Farm Bureau alsowill serve potato soup, hotdogs, chips, and soda tothose who purchase fuel.

• The Hancock CountyFarm Bureau Foundation willoffer three $1,000 scholar-ships to Hancock County stu-dents. The scholarships willbe awarded to students whopursue a secondary educationin an agriculture-related fieldof study. Applications areavailable from high schoolguidance counselors, FFAadvisers, and at the FarmBureau office. Deadline toreturn applications is April 1.Call the Farm Bureau office at217-357-3141 or [email protected] for moreinformation.

JASPER — An “On theRoad” seminar will be at

1:30 p.m. Thursday at theFarm Bureau office. Call theFarm Bureau office for moreinformation.

KANKAKEE — The100th annual meeting

will be at 5:30 p.m. Thursday,March 15, at the Hilton Gar-den Conference Center,Kankakee. Bob Stallman,American Farm Bureau Feder-ation president, will be thespeaker. Dinner will beserved. A string quartet fromOlivet Nazarene Universitymusic department will providethe entertainment. Cost is$15 for members and $30 fornon-members. Call the FarmBureau office at 815-932-7471for reservations or moreinformation.

KNOX — The Women’sCommittee will donate

a baby basket filled with agri-cultural items to the first babyborn in Knox County inMarch.

• The Young Farmers aresponsoring a “31 Days ofFarming” campaign during AgMonth. Each day duringMarch, an ag fact will beannounced on a local radiostation and posted on theFacebook page.

LASALLE — Theboard of directors

and Viewpoint Committeewill host a call-a-thon from7 to 8 p.m. Tuesday, March13. They will call membersand solicit opinions on cur-rent and future actions ofthe Farm Bureau. Thosewho don’t receive a call andwish to offer an opinionshould call their districtdirector or the Farm Bureauoffice at 433-0371.

• Farm Bureau has dis-counted the price on itsSMV (slow-moving vehicle)decals. Cost is $2. Call theFarm Bureau office formore information.

LEE — An “Ease-ments and Your

CARROLL — TheCarroll County Farm

Bureau Foundation scholar-ship applications are avail-able at the website{www.carrollcfb.org} or atthe Farm Bureau office bycalling 815-244-3001. Dead-line to submit applications isFriday, March 23.

• The 4C’s Prime Timerswill sponsor a bus trip Fri-day, May 4, to the PutnamMuseum, Davenport, Iowa.The bus will leave the FarmBureau office at 11:30 a.m.and return by approximately7 p.m. Call the Farm Bureauoffice at 815-244-3001 formore information.

CASS-MORGAN —Applications for the

Cass-Morgan Farm BureauFoundation scholarships areavailable at the Farm Bureau,Extension, school agricul-ture departments, and guid-ance counselor’s offices.Deadline to return applica-tions to the Farm Bureauoffice is March 23.

CLARK — An “On theRoad” seminar will be

at 6:30 p.m. Thursday at theFarm Bureau office. Call theFarm Bureau office for moreinformation.

CLINTON — FarmBureau will host a leg-

islative breakfast at 7 a.m.Monday, March 12, at theFarm Bureau office. StateSen. John O. Jones (R-Mt.Vernon); Sen. DavidLuechtefeld (R-Okawville);state Rep. Mike Bost (R-Murphysboro); state Rep.John Cavaletto (R-Salem);and state Rep. Paul Evans(R-Offalon) have been invit-ed to attend. Call the FarmBureau office for moreinformation.

FORD-IROQUOIS —The annual meeting

will be at 7 p.m. Thursday atthe Farm Bureau office. Callthe Farm Bureau office formore information.

• An “On the Road” semi-nar will be at 7 p.m. Tuesday,March 13, at the FarmBureau office. Kevin Rund,Illinois Farm Bureau seniordirector of local govern-ment, will be the speaker.

GRUNDY — An “Onthe Road” seminar

will be at 7 p.m. Monday,March 12, at the FarmBureau office. Kevin Rund,Illinois Farm Bureau seniordirector of local govern-ment, will discuss federaltruck regulations. Call theFarm Bureau office at 815-942-6400 for reservations ormore information.

HANCOCK — FarmBureau will sponsor

its E-85 promotion from 10a.m. to 1 p.m. Friday, March9, at Roger Laws Service Sta-tion, Carthage. Fuel will be

waukee. The Aug. 20 Cubsvs. Brewers game in Mil-waukee is filling up quickly.Call the Farm Bureauoffice at 815-232-3186 forreservations.

VERMILION — AYoung Leader meet-

ing will be at 7 p.m. Tues-day at the Farm Bureauauditorium. Tom Stoddard,Stoddard Ag Services, willbe the speaker. He willdiscuss spring preparationsand how the mild winterwill affect the upcominggrowing season. All FarmBureau members mayattend. Call the FarmBureau office for moreinformation.

• The Marketing Com-mittee will sponsor an agfinances and land valuesprogram at 9:30 a.m. Mon-day, March 12, at the FarmBureau auditorium. A pan-el of four bankers and landappraisers will discuss thecurrent financial situationin agriculture as it pertainsto loans and land prices.Call the Farm Bureauoffice for more informa-tion.

WAYNE — The annualmeeting will be at 6

p.m. Friday at the CumberlandPresbyterian Church, Fairfield.The Young Leader Committeewill collect non-perishablefood items, as well as offervalet service for a donation.Proceeds will benefit the Har-vest for All program. TheRoasted Chestnuts will pro-vide the entertainment. Callthe Farm Bureau office at 618-842-3342 for reservations.The annual meeting notice isposted on the website{www.waynecfb.com}.

• Farm Bureau will spon-sor a program “Land Con-tracts and Leases” at 1 p.m.Tuesday at the CumberlandPresbyterian Church. LauraHarmon, Illinois FarmBureau assistant generalcounsel, will review variousleases offered by land com-panies. Call the FarmBureau office at 618-842-3342 for reservations ormore information.

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

profitability


Export inspections(Million bushels)

Week ending Soybeans Wheat Corn02-23-12 37.0 9.4 27.002-16-12 38.5 22.3 34.8Last year 50.4 19.6 25.2Season total 870.4 724.6 803.1Previous season total 1152.4 862.5 804.2USDA projected total 1275 975 1700Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.08-$54.85 $43.1740 lbs. $69.19 $69.1950 lbs. no longer reported by USDAReceipts This Week Last Week 106,215 101,158*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $80.65 $83.02 -2.37Live $59.68 $61.43 -1.75

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

Steers 129.80 128.22 1.58 Heifers 130.27 128.43 1.84

USDA five-state area slaughter cattle price

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

This week Prev. week Change $156.42 156.50 -0.08

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

Slaughter Prices - Negotiated, Live, wooled and shorn 120-165 lbs. for149.63-181.45 $/cwt. (wtd. ave. 158.25); dressed, no sales reported.

Milk price dips significantlyThe Class III price for milk adjusted to 3.5 percent butterfat

for the month of February was $16.06 per hundredweight. Thiswas a 99-cent drop from the previous month.

One of the mildest winters on record has kept cows milkingvery well. This, coupled with a cow’s natural ability to increaseproduction into the spring, has increased supply.

Dairy farmers know this phenomenon as the “spring flush,”which seems to be coming on a little early this year. The highermilk production has placed some pressure on milk prices, andsome producers are now seeing milk checks at below break-evenprices.

USDA economist sees no signs of farmland bubbleBY DANIEL GRANTFarmWeek

Joe Glauber, USDA chiefeconomist, understands sky-rocketing farmland values maymake some farmers nervous,particularly those whoremember the farm crisis ofthe 1980s.

But the financial outlookfor agriculture remains strong,and Glauber sees no signs ofa farmland bubble or reasonsfor an imminent collapse inprices.

Farmland values were a hottopic recently at the USDA AgOutlook Forum in Arlington, Va.

“A lot of areas have seenincredible growth in realestate values,” Glauber toldFarmWeek. “Nationwide,we’ve seen asset values

the increase in land values.”USDA’s Economic

Research Service (ERS)

recently released a report indi-cating “trends in farmincomes, cash rents, and inter-est rates suggest that farmlandvalues were supported byfarm earnings in 2009 and2010.”

The report, which can be

viewed online at{www.ers.usda/gov}, also not-ed the cyclical nature of farm-

land values suggest the possi-bility of a market correction inthe future.

Increases in interest rates ora significant drop in commodi-ty prices would put downwardpressure on farmland values,according to the report.

increase by more than 5 per-cent (annually) for the lastthree years and in the Midwest

it’s been muchlarger thanthat.”

The FederalReserve Bankof Chicagorecentlyreportedfarmland val-ues in its dis-trict, which

includes parts of Illinois, Indi-ana, and Iowa, jumped 25 per-cent in the fourth quarter of2011 and 22 percent for theyear. It was the largest yearlyincrease in the district since1976.

The Kansas City FederalReserve Bank also reported a

25 percent increase in farm-land values.

“There are a lot of goodreasons why land values areincreasing, including very lowinterest rates and a very posi-tive income picture,” Glaubersaid.

USDA reported net cashincome in 2011 set a record.This year, USDA is projectingnet income will slip a bit butstill total $96.3 billion, whichwould be the second-higheston record.

“Producers have been veryprudent with how theyfinanced expansion,” Glaubersaid. “A lot of (farmland) saleshave been cash-based sales.

“That makes for a veryhealthy picture,” he continued,“even if you’re nervous about

Joe Glauber

‘There are a lot of good reasons whyland values are increasing, includingvery low interest rates and a very pos-itive income picture.’

— Joe GlauberUSDA chief economist

Propane prices feeling natural gas pressureBY RANDY MILLER

It won’t be long until talkof baseball, corn planting,

and springflowers willfill the localcoffee shop.

The win-ter of 2011-2012 likelywill go downas one of thewarmest on

record, as heating degreedays in Rockford were only

propane and natural gas willneed outside factors to rallyin price before next winter.Certainly world economies,political concerns, and hurri-canes in the Gulf all have theability to push markets forboth products higher.

Propane marketers andconsumers have more reasonthan ever to keep a watchful

eye on the natural gas market. What to do? Keep in

touch with your local FSpropane salesman who canhelp you take advantage ofthe current market situation.

Randy Miller is GROW-MARK’s propane operationsmanager. His e-mail address [email protected].

75 percent of the previousthree years in December andJanuary, with Februaryappearing to be even warmer.

With propane inventoriesat high levels and productionin the U.S. continuing togrow, what shall we expect aswe look ahead?

Propane prices appear tobe influenced more today bynatural gas than crude oil.For years, nearly all propanewas made within the refin-ing process and fractionat-

ed, or split out, from thenatural gas stream.

As you might expect, withthe oil shale plays developingin the U.S., these numbers arechanging.

In 2000, approximately585,000 barrels per day ofpropane were produced fromcrude oil, while about540,000 barrels were pro-duced from natural gas.

In 2009, about 325,000barrels came from crude oil,with 565,000 barrels fromnatural gas.

Forecasters are suggestingthat by the year 2016, crudeoil will account for onlyabout 275,000 barrels ofpropane production, withnatural gas accounting forabout 725,000 barrels perday.

Both propane and naturalgas fall into the same sup-ply/demand situation. Bothproducts will come out ofthis winter with historicallyhigh inventories on hand,moving into summer whenstocks always build in prepa-ration for the next heatingseason.

Currently, propane inven-tories in the U.S. are nearly50 percent higher than lastyear and nearly 25 percentabove the five-year average,while natural gas inventoriesare 45 percent higher thanlast year and 35 percentabove the five-year average.

Demand for both productshas been weakened by thewarm winter. Natural gaslikely will get some supportthis summer, being used topower plants making electric-ity for the cooling season,while propane’s demand willcome from exports and thepetrochemical industry.

With this in mind, both

Randy Miller

PROFITABILITY

AgriVisor Hotline Number

309-557-2274

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Policies issued by COUNTRYMutual Insurance Company®,

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CASH STRATEGISTCorn Strategy

ü2011 crop: A close under$6.50 on May futures would bethe first sign the minor trend isturning down. Until then, atest of the $6.70-$6.83 region isstill possible. Make catch-upsales any time May is above$6.50. Price another 10 percentif May futures close below$6.40.

ü2012 crop: Use ralliesabove $5.65 on Decemberfutures to make catch-up sales.We could add another sale atany time; check the Hotline dai-ly.

vFundamentals: The cornmarket either rides the coattailsof soybeans or wheat higher.Old-crop fundamentals areneutral, but prospects for largeplantings in 2012 are makingthe whole complex somewhatdefensive. And current weath-er/soil conditions tend to sug-gest planting could get off to afast start this year. The 2012crop insurance guarantees stillencourage farmers to plantcorn vs. other crops. Talk infinancial circles also hints of apossible short-term turn up inthe dollar again, another featurethat will work against cornprices.

Soybean Strategyü2011 crop: Soybean prices

have come to a critical juncture.South American news appearsto have become emotionallyexhausted. That leaves furtherstrength tied to unexpecteddemand or problems with ournew crop.

ü2012 crop: Use rallies tomake catch-up sales. If itwasn’t so early, we’d be willingto sell more at these prices.

vFundamentals: Argen-tine weather may have beengood enough in recent weeksto boost potential for its cropslightly. Last week’s rains insouthern Brazil, albeit too lateto improve prospects, shouldhave stabilized conditionsenough to keep their output inthe 68 million to 70 millionmetric ton range. Chinesedemand has perked up after along slumber, but they, like us,are entering a time whendemand seasonally softens.Crush margins have improvedand port stocks have started todecline. But much of the Chi-

nese buying has been for thenew-crop year.

Wheat Strategyü2011 crop: After estab-

lishing a short-term high, themarket could be turning downagain, but Chicago May needsto close below $6.53 to con-firm. If that happens, it couldtest $6.28. Use current levels tomake catch-up sales. The carryin futures still pays for com-mercial storage, making springhedge-to-arrive contracts thebest tool, but don’t carry inven-tories beyond April.

ü2012 crop: Use currentprice levels to make catch-up

sales. New-crop sales stand at35 percent.

vFundamentals: Chicagowheat prices have benefitedfrom spillover support fromMinneapolis wheat on worriesabout dry conditions in theNorthern Plains. The snow-storms that recently crossed theregion diminished anxietysomewhat. But moisture is stillshort. Conditions in the South-ern Plains have turned warm,starting to bring the crop out ofdormancy. Winds are drying thetopsoils. The early break fromdormancy makes the crop a lit-tle more vulnerable to damage.

Cents per bu.

Bean supplies still adequate


quantities into 2012 — 1 mmt inJanuary and another 1.57 mmt inFebruary.

Many Brazilian farmersalready have sold 55 percent oftheir new crop. Sales are evenheavier in northern states whereharvest is more advanced. Andharvest is generally a little ahead,allowing supplies to enter theworld pipeline a little soonerthan normal.

In recent years, by March theywere shipping 2 mmt to 3 mmtper month, growing to 4 mmt to5 mmt by May.

Argentina’s exports startabout a month later because ofthe later harvest. And Argentinais a bigger shipper of productthan whole soybeans. Two yearsago, April/May shipmentsexceeded 2 mmt per month, but1 mmt is a more traditional pace.

This year’s smaller crops willcut into their monthly ship-ments, but not enough to signifi-cantly boost our old-crop ship-ments. But unlike this last yearwhen they were still shipping bignumbers well into winter, theirshipments will tail off sharply bysummer’s end. That will bolsterexport demand for our soybeansthis coming fall.

But a return to a strongexport program at the beginningof our new-crop year won’t nec-essarily bring high prices. Bythen, the supply/demand land-scape could look differentdepending on the size of ournew crop and the health of theworld economies.

If the current rally pulls moreland into soybeans this spring,we could still end up with a cropmore than large enough to meetgood fall/winter exports, as wellas the smaller ones we nowexperience in spring/summer.And by year’s end, potential out-put in South America will onceagain become a part of the equa-tion, impacting the aggressive-ness, or lack thereof, with whichbuyers fill their needs.

Despite this winter’s weatherproblems in South America, thefundamental structure of theworld soybean market is still farfrom being too tight. At the endof the 2008/2009 crop year, soy-bean stocks were 42.7 millionmetric tons (mmt), with a stock-to-use ratio of 19 percent.

This year, the ending stocksshould be near 57 mmt to 58mmt, with a stocks/use ratio at22 to 22.5 percent.

The reason the reduction inthe South American crop hasnot had a bigger impact isbecause of the exceptionallylarge crops there last spring.They were still exporting signifi-cant quantities of that crop wellinto the current calendar year.That blunted demand for cropsgrown last summer, ours in par-ticular.

One of the big issues makingthe soybean market differentfrom other grains is the hugeincrease in South American out-put. Last year, approximately 50percent of the world output wasproduced in South America.

Because of that, a significantquantity of new supplies becomeavailable to the world every sixmonths. And the supply ofSouth American soybeans in agood year is about 50 percentlarger than the crop we produce.

Traditionally, they have alwaysbeen an aggressive exporter oncenew-crop supplies become avail-able. But that’s not a lot differ-ent than any other country, espe-cially ones that don’t have thestorage infrastructure that wehave in the U.S. or Europe.

Their export programs tendto peak in May/June, beforetapering off into our fall. Lastyear was an exception, withBrazil still exporting significant

pERSpEcTIvES


“Rebui ldingrural areas,engaging thenext genera-tion in farm-i ng , andteaching farm-ing life to peo-ple who live inthe city.”

Linus NosbischEffingham County

“Exp la in ingwhat we doin agricultureto the generalpublic. Regu-la t i on s t ha ta d v e r s e l yaffect us arebeing formeda n d i m p l e -

mented because of this lack ofinformation.”

Brad ZwillingChampaign County

LEADERTALK: Whatis the mostchallengingissue facingagriculturetoday?

Ed i tor ’s no te :Members of the Illinois FarmBureau GrassRoots I s sueTeams (GRITs) were asked fortheir views on several ques-tions. Their responses willappear periodically on thePerspectives page.

“ P u b l i cimage of agi s mo s t l ynegative. Weneed to do ab e t t e r j o bt e l l i ng ou rstories.”

Kate HagenbuchLaSalle County

“ K e e p i n gyoung peopleinvolved inagriculture,stopping thedepopulatingof the rurala r ea , andd ra f t i ng afa rm p ro -

gram friendly to farmers and theurban population.”

Bob PharisLogan County

LETTERS TO THE EDITORLet’s require vehiclesthat use natural gasEditor:

It is reported that we haveenough natural gas for 100years. Why not require thevarious auto manufacturers toproduce CNG (compressednatural gas) for autos andtrucks? Are our politiciansreally so dumb?

All the crude oil that we buyfrom foreign countries meansour money is leaving our coun-try. We should keep our moneyat home.

CNG vehicles would notrequire totally new engines. Isee some larger trucks usingliquid propane gas. Let’s stopkicking the can down the road!HERBERT WODKTE,Loogootee

Legislation limitspowers of countiesEditor:

“Safety focal point of FarmBureau legislative priorities”(Feb. 20 FarmWeek) charac-terizes SB 3271 as a standardto protect public health andsafety.

SB 3271 (which seeks toestablish statewide standardsfor commercial wind energyprojects) is an assault on localcontrol of land use. It severelylimits the rights of citizens andpowers of counties.

The first glaring problemwith the legislation as pro-posed is that the bill sets maxi-mum setbacks from primarystructures, roads, and propertylines. One would expect that ifsafety is the “focal point” ofthe bill that the bill would setminimum setbacks.

The second problem is thatnotice of the public hearingwould not be sent to adjoininglandowners. In most countieswith zoning, wind energydevices are a special use in adistrict. The law for specialuses requires notice of thehearing to be sent to adjoininglandowners.

Why does Farm Bureau sup-port a policy that would limitpublic awareness of develop-ment or suppress public input?

Thirdly, SB 3271 wouldmake the meteorological tow-ers permitted uses, eliminatingthe requirement for a publichearing. Met towers are anextreme hazard to aerial appli-cators.

Please don’t mislead thepublic. The setbacks aredesigned for the preservationof the wind industry. Whileexpertise may be lacking at the

local level, actual experiencewith turbines is not. Sixtycounties in Illinois currentlyhave regulations in place.

Some counties, includingsome of the first ones to per-mit the devices, are rewritingregulations.

Senator Frerichs and theFarm Bureau have made nomention of conducting healthstudies in areas where peopleare living inside the wind towergrid.

Perhaps they are unawarethat there is evidence of nega-tive impacts of health. I urgeall public officials to insist thatthe rationale for setbacks bebased on health and safety andnot the viability of an industry.JUDY CAMPBELL,Manville

Editor’s note: Ms. Campbellcurrently serves on the LivingstonCounty Board.

Letter policyLetters are limited to 300

words and must include aname and address.

FarmWeek reserves theright to reject any letter andwill not publish politicalendorsements.

All letters are subject toediting, and only an origi-nal with a written signa-ture and complete address

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Send letters to: FarmWeek Letters

1701 Towanda Ave.Bloomington, Ill., 61701

Once upon a time, anyone could declare his foodproduct as organic.

Some products were very organic and someweren’t. As organic food became more popular,consumers wanted to be sure the food productsthey purchased were really, truly organic.

In response, state and federal agencies, in combi-nation with private organizations, started to policewhich products were actually organic.

For example, products produced at our School ofAgriculture’s Allison Organic Research Farm northof Macomb are certified organic by the MidwestOrganic Services Association (MOSA), an organiza-tion approved by USDA to monitor and certifyorganic food.

This means the purple and gold popcorn pro-duced on the Allison Farm can besold as organic popcorn with MOSAcertifying, backed by USDA, that thepopcorn really is organic. This is stat-ed on the popcorn’s label: “CertifiedOrganic by MOSA.”

Achieving the MOSA organic cer-tification is not an easy process, butit is one that is worth it because con-sumers can trust that the product isreally organic.

There are other groups that also certify a crop orfood as being organic. According to the IowaDepartment of Agriculture, more than a dozenstate departments of agriculture and 51 privateorganizations are accredited by USDA as organiccertifiers.

Wi thout tha t ce r t i f i c a t ion , a p roduc t

can’t be so ld a s o rg an i c.With the above in mind, I recently purchased a

product that was clearly identifiedas being organic — and inthis case, it had a largelabel that read“USDA Organic.”

People fromUSDA didnot person-ally inspectthe prod-uct, butUSDAdoesinspectthe pri-vatecompa-nies,such asMOSA,that do theinspectionand certifica-tion.

The fact thatthe USDA organiclabel was on the prod-uct gave me confidencethat product was actually organ-ic. So I bought it.

What eventually caught my attention was the factthat this product, with the USDA Organic label

prominently displayed, was actually imported fromChile. I was surprised to see a USDA label on an

imported product. To me, a USDA label implies a U.S.

product. Wrong. And USDA doesn’tsee any harm in putting the USDA

label on imported food — inessence putting those imports

on the same footing asdomestically produced

products. USDA told me“USDA organic produc-tion can occur any-where in the world andbe represented asUSDA Organic aslong as productsadhere to the stan-dards.”

It appears that theUSDA Organic label

has become a brand,available for anyone in

the world to purchase.The moral, for me, is to

keep reading labels to knowwhere your food comes from.

And to read the small print on thelabel.

William Bailey is chairman of Western Illinois University’sSchool of Agriculture, Macomb. His e-mail address is [email protected].

WILLIAMBAILEY

USDA brand appears on imported products, too

farmweek march 5 2012

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