farmweek february 8 2010 edition

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Monday, February 8, 2010 Two sections Volume 38, No. 6

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

AN ADMINISTRATION pro-posal to target direct farm programpayments — and consequentlyreopen the farm bill — likely willspark little interest on Capitol Hill. ..4

A MOVE TO BAN the use ofantibiotics in farm animals for oth-er than treatment of illness couldbackfire, a swine specialist main-tains. .................................................6

A $4 BILLION federal commit-ment to carbon sequestration tech-nologies increased hope for a cut-ting-edge Ill inois coal researchfacility planned for Mattoon. .........5

DIFFICULT LESSON

Franklin County farmer Kent Sickmeyer shows landhe and his wife, Sarah, reclaimed after it was dam-aged in 2007 by an oil developer (lower left photo).Farm Bureau played a key role in passing legislationto protect surface landowners, but potential problemsstill exist, according to Sickmeyer and his attorney,Tom Crosby. See the story on page 2. (Photo by KenKashian)

Redistricting initiativeCollecting petition signatures requires precision

BY KAY SHIPMANFarmWeek

Farm Bureau membersinterested in collecting signa-tures to put a redistricting ini-tiative on the November ballotshould be aware of the stepsneeded to ensure the signa-tures will be valid, according toJan Czarnik, executive directorof the League of Women Vot-ers, one of the initiative sup-porters.

“It’s absolutely essential thatdirections be followed exactly,’’Czarnik told FarmWeek.

Illinois Farm Bureau is sup-

porting the Fair Map Amend-ment Initiative, which seeks toput a proposal to amend thestate Constitution before vot-

ers. The amendment wouldchange the method used todraw state legislative districts.

A petition may be down-loaded from the Illinois Fair

Map Amendment initiativewebsite {www.ilfairmap.com}.County Farm Bureaus alsohave received information.

Petitions are specific foreach election authority, whichare county election authoritiesin most cases. However, eightcities require a specific citypetition. Those are: Aurora,Bloomington, Chicago,Danville, East St. Louis, Gales-burg, Peoria, and Rockford.

The text of the proposedamendment must be printedon the back of each petitionpage that is being circulated.

Pages cannot be printed sepa-rately and then stapled orglued together, Czarnikstressed.

Each individual who signs apetition must be a registeredvoter and live in the county orcity listed on the petition,Czarnik said. For example,Will County voters must sign aWill County petition, whileGalesburg voters must sign aGalesburg petition.

Each petition sheet shouldinclude only voters from one

FarmWeekNow.com

Land use theory still ‘unreliable’

EPA proposes a more corn ethanol-friendly RFS2BY MARTIN ROSSFarmWeek

Corn ethanol’s potentialexpanded significantly lastweek with U.S. EnvironmentalProtection Agency (EPA)Administrator Lisa Jackson’sannouncement that EPA hadrecalculated ethanol’s carbonfootprint.

Jackson joined with AgSecretary Tom Vilsack torelease details of the federalgovernment’s revised renew-able fuels standard (RFS2),which targets 36 billion gal-lons of alternative motorfuels use by 2022.

While that future energymix will include fuels madefrom cellulosic biomass andother yet-to-be-developed“advanced biofuels,” Jacksonsaid corn ethanol could nowcapture a larger share of theeventual RFS2 market.

Renewable fuel rules hadcapped use of corn-basedethanol to meet RFS2 goals ata maximum 15 billion gallonsper year, based on the assump-tion that newer fuels wouldimprove greenhouse gas emis-sions.

But EPA re-examined anumber of criteria affectingethanol’s greenhouse impact,including use of ethanol co-

products to produce addedfuel, projected crop productiv-ity, and the effect of corn andethanol production on global“indirect land use change.”

By expanding its land usefocus from a mere 40 coun-tries to 160, Jackson said“new” corn ethanol producedmore efficiently with cleanerenergy scores at 20 percentless greenhouse impact thangasoline — the benchmark foradvanced RFS2 eligibility.

“This really unlocks thedoor,” not only for ethanol butalso for soy biodiesel, Jacksonstressed. Soy diesel fuel usewas capped at a meager 1 bil-lion gallons per year by 2022under the original RFS, but shemaintained that under new cal-culations, “biodiesel is a goodinvestment.”

The American SoybeanAssociation applauded theannouncement, arguing RFS2is “absolutely critical to thecontinued success of soy-beans as a homegrown renew-able fuelstock.”

The Illinois Corn GrowersAssociation (ICGA) was moreguardedly optimistic: ICGAPresident Tim Lenz main-tained that “although this rulelooks good on the surface, it’sreally only as good as its

worst science.”“Illinois Corn has been

working for months to have

the international land usechange model removed fromEPA’s considerations,” he told

FarmWeek. “It’s unreliable

See RFS2, page 5

To learn more about preciseprocedures for collectingpetition signatures, go toFarmWeekNow.com.

See Petition, page 2

A F B F P U S H E S F O R C O N T I N U E DATRAZINE USE — American Farm Bureau Federa-tion President Bob Stallman last week called for contin-ued use of atrazine in a letter to U.S. EnvironmentalProtection Agency (EPA) Administrator Lisa Jackson.

“Having access to one of the most important cropprotection products is vital to the success of America’sfarmers in providing a safe and abundant food supply,”Stallman wrote. “Accordingly, we felt heartened twoyears ago, that, having gone through a rigorous and fairre-registration process, atrazine continue to be availableto farmers who abided by its strict label requirements.”

EPA is studying potential health risks related toatrazine. At the end of this process, the agency willdetermine whether to revise its current position onatrazine or if current use restrictions are sufficient.

“We hope, as the EPA’s review goes forward, you willnot confuse the voice of a few special interests withAmerica’s broad and vital community of farmers, agri-cultural workers, and associated industries — and thatyou will work with all authentic and responsible stake-holders in an open, transparent, and fair process,” Stall-man wrote.

OBAMA CLAMORS FOR CAP AND TRADE— President Barack Obama is urging the U.S. Senatenot to give up on climate change legislation.

“I don’t want us to just say the easy way out is for usto just give a bunch of tax credits to clean energy com-panies,” Obama said in a televised question-and-answersession with Senate Democrats last week. The presidentpraised efforts by Sens. John Kerry (D-Mass.), LindseyGraham (R-S.C.), and Joe Lieberman (I-Conn.) to crafta compromise bill that blends greenhouse emissionslimits with new support for nuclear power, low-emis-sions coal plants, and offshore drilling.

The White House supports a “comprehensive” ener-gy and climate bill that includes an emissions cap-and-trade plan. Illinois Farm Bureau opposes cap-and-tradelegislation approved last year by the House.

MORE AMERICANS IN NEED — A studyreleased last week by Feeding America reports morethan 37 million people — one in eight Americans,including 14 million children and nearly 3 millionseniors — receive emergency food each year throughthe nation’s network of food banks and the agenciesthey serve.

The findings represent a staggering 46 percentincrease compared to Feeding America’s previous 2006study. Hunger in America 2010 reportedly is the firstresearch study to capture the significant connectionbetween the recent economic downturn and anincreased need for emergency food aid.

FarmWeek Monday, February 8, 2010

(ISSN0197-6680)

Vol. 38 No. 6 February 8, 2010

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

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

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

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

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

© 2010 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

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Bob StandardAdvertising Sales Manager

Richard VerderyClassified sales coordinator

Nan FanninDirector of News and Communications

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

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

Quick TakesENVIRONMENT


Kent Sickmeyer teaches agriculture atKaskaskia Community College, but he and hiswife, Sarah, at one point became the studentsand learned a hard lesson about surface rightsvs. mineral rights.

Sickmeyer wants to make other landownersand political leaders aware of potential prob-lems and issues surrounding surface rights.

“I feel surface (rights) owners need betterprotection. I learned a lot. I didn’t dream they(an oil drilling company) could come in and dowhat they did,” Sickmeyer told FarmWeek,relating damage done to his property.

Tom Crosby, Sickmeyer’s attorney, who spe-cializes in energy law, noted the state law deal-ing with oil drilling was amended after thedrilling occurred on the Sickmeyer land. “TheFarm Bureau played a key role in getting legisla-tion passed and the amendment (passed),” Sick-meyer said.

“It used to be more drilling by ambush,” headded.

However, Crosby noted additional protec-tions are needed.

The Sickmeyers knew they didn’t own themineral rights under their 40 acres in FranklinCounty. An independent operator leased themineral rights under the Sickmeyers’ propertyand decided to drill for oil.

To make matters worse in January 2007, thetownship had posted weight limits on the roadadjacent to the Sickmeyer property. Without anaccess road, the developer moved off the pave-ment and used two bulldozers to pull and twobulldozers to push the oil rig across the Sick-meyers’ land in muddy conditions, cutting hugeruts in the ground. Then he drilled about 200feet from their home.

After that rig struck oil, the oil developer

dragged his equipment across the Sickmeyers’land again to drill a couple of wells on a neigh-bor’s property.

“As they moved back and forth, they tookabout six acres out of 40 to move their equip-ment in winter. That’s the absolute worse timeto do that in Southern Illinois. It was a loblolly,”Sickmeyer said.

The Sickmeyers sued the developer and even-tually settled out of court. They received theirfinal settlement payment late last year. Mean-while, they had paid for reclaiming the landthemselves.

In 2008, the state Drilling Act was amendedto stipulate the method of advance notice adeveloper must give and require the operator togive a copy of the Drilling Operations Actalong with the notice to a surface owner priorto drilling a well.

An operator also must compensate the sur-face owner for losses of ag production, person-al property, and improvements.

However, the law does not explicitly covernon-productive land, such as a woodlot, Crosbynoted. “The issue is open whether you can becompensated for diminished value” of suchland, he said.

With high oil prices, “a lot of operators arebeing less than careful stewards of the surface,”Crosby continued.

“The theme in the long term is you have toprotect surface owners more so than those whowant to exploit the minerals. The public good isserved more by protecting the surface.”

Sickmeyer and Franklin County Farm Bureaumanager Larry Miller favor putting more teethinto state law to protect surface owners.

“We recognize, and always have recognized,the right of minerals to be explored and cap-tured,” Miller said. “But what happened to Kentcan happen to anyone.”

Tough lessons are learned in aftermath of oil drilling

Continued from page 1election authority.

Individuals circulating petitions do not have to be registeredvoters, but they must be at least 18 years old, a U.S. citizen, andan Illinois resident.

After signatures have been collected, the individual who circu-lated the petition must have eachpage notarized. Notaries may belocated in such places as localbanks or attorney offices.

Notarized petitions need tobe mailed to the Fair Map initia-tive group by April 1. The mail-ing address is:

Illinois Fair Map Amendment,c/o League of Women Voters

332 S. Michigan Ave., Suite 1150, Chicago, Ill., 60604.For more information, contact your county Farm Bureau or

Czarnik at 312-939-5935.

Petition

Corps seeks comment on Rice Lake projectThe U.S. Army Corps of

Engineers Rock Island Districtis seeking public comments onthe proposed Rice Lake habitatrehabilitation and enhance-ment project. A 30-day com-ment period started Jan. 28.

Comments should bemailed to: U.S. Army Corps ofEngineers, Rock Island Dis-

trict, Attention: Darron Niles,technical coordinator, ClockTower Building, P.O. Box2004, Rock Island, Ill., 61204-2004.

Rice Lake is a 6,800-acrebackwater complex located 24miles southwest of Peoria inFulton County.

The project lands are owned

by the state and managed bythe Illinois Department ofNatural Resources as the RiceLake State Fish and WildlifeArea.

The recommended planincludes constructing aperimeter levee to protect veg-etation growing on interiorwetland areas from summerfluctuations of the Illinois Riv-er, a spillway to protect theperimeter levee from overtop-ping flood damage, a pumpstation to allow for timelyflooding of the protected veg-etation for use by migratorybirds, fish egress structures toensure access to deep waterareas during the summer, andvegetation plantings to restorehistoric floodplain cover diver-sity and provide food and cov-er for resident and migratorybirds.

The report, additional infor-mation about the project, andthe Corps’ Upper MississippiRiver Restoration-Environmen-tal Management Program areavailable online at {www.mvr.usace.army.mil/emp}.

General Assembly

Intense, shortened session now ahead?

STATE



Fast and furious aren’t terms usually appliedto the spring legislative session in Illinois, butthey might fit this year.

With a tentative May 7 adjournment, statelegislative leaders apparently will focus on pass-ing a budget and addressing only “emergency”issues, according to Kevin Semlow, IllinoisFarm Bureau director of state legislation.

“It’s our understanding the leaders areencouraging their members to be judiciousabout the issues they deem to be important,”Semlow said.

This is the second year of a two-year legisla-tive term, and second-year terms are limited bylaw to dealing with the budget and only issuesthat are considered emergencies, Semlowexplained.

A shortened legislative session translates intoless time to introduce and move IFB’s legislativepriorities through the process.

Thursday is the deadline for bill introductionin the House.

IFB has secured bills for its legislative priori-ty related to all-terrain vehicles (ATVs) and util-ity-terrain vehicles (UTVs). SB 2566 is spon-sored by Sen. John Sullivan (D-Rushville) andHB 4909 is sponsored by Rep. Rich Myers (R-Colchester). Both bills propose to restore theability of an ATV or a UTV to be used onroads for farming purposes and to allow thosevehicles to cross roads.

Meanwhile, results from last week’s primaryelection will not be certified as official untilMarch 5, an Illinois State Board of Electionsspokesman told FarmWeek. On that date, offi-cial results will be posted online at{www.elections.state.il.us}.

As of Friday, primary results were consid-ered tentative because provisional ballots need-ed to be counted and challenges in close raceswere possible, Semlow said.

No election results are official until they arecertified by each county clerk and forwarded tothe State Board of Elections, Semlow added.

While the Democratic race for governor hasbeen conceded, the Republican race for thatoffice remained close on Friday with Sens. BillBrady and Kirk Dillard separated by a few hun-dred votes.

Farm Bureau members encouragedto share their spray drift opinions

The U.S. Environmental Protection Agency (EPA) willtake public comment on proposed more stringent pesticidedrift rules until March 5.

Illinois Farm Bureau is encouraging members to sharetheir views about the potential impact of a zero-drift stan-dard.

“Preventing every molecule of crop protection productfrom drifting in every conceivable circumstance is techni-cally impossible,” said Nancy Erickson, IFB director ofnatural and environmental resources.

EPA’s proposed action may subject farmers to enforce-ment actions and frivolous lawsuits, Erickson added.

EPA has drafted a pesticide registration notice on pesti-cide drift labeling.

The agency is proposing to add a general statement onspray drift that Erickson described as being vague andexcessively broad.

“Individual comments or letters to EPA from farmerswill be helpful to ensure EPA understands the full impactof its actions,” Erickson said.

County Farm Bureaus have received additional informa-tion and talking points.

Information also has been posted online at{www.ilfb.org}.

Comments should be mailed to: U.S. Environmental Pro-tection Agency, Regulatory Public Docket (Mail Code7502P), Docket EPA-HQ-OPP-2009-0628, Office of Pesti-cide Programs, 1200 Pennsylvania Ave. NW, Washington,D.C. 20460-0001.

Comments can be submitted by going to{http://capwiz.com/ilfb/state/main/?state=IL}. — KayShipman

State readies for broadband competition, several projects still in huntState officials are seeking

proposals for $4.8 billion infederal broadband stimulusfunds while hoping some Illi-nois projects still might beselected in the first round ofbroadband funding.

Although no Illinois pro-jects were announced as recipi-ents in mid-December, lessthan 20 percent of the totalamount was awarded “so thegovernor ... remains hopefulawards for Illinois will beannounced,” Ryan Croke, thegovernor’s deputy chief ofstaff, said last week.

The state again will commit

matching funds for selectedproposals from Illinois and willoffer help from universitygrant-writing experts, accord-ing to Croke. Information isonline at {www2.illinois.gov/broadand/Pages/default.aspx}.

“Governor (Pat) Quinn hasmade this a priority and has setaside funds,” Croke said lastweek during a meeting of theIllinois Broadband Deploy-ment Council.

Quinn earmarked $50 mil-lion for broadband from lastyear’s capital plan, and thosedollars, which came from thesale of bonds, will be available,

Croke assured council mem-bers.

He estimated $35 millionmay be available in matchingfunds to support second-roundsubmissions, but that amountcould increase with the returnof any matching funds thatwere committed for unsuccess-ful first-round projects.

State officials are working toimprove the chances for Illi-nois’ projects.

For example, the federalgovernment will give addition-al consideration to projectsthat have raised 30 percent ofproject funding.

Illinois now is requiring pro-posals to have obtained at least10 percent of the cost beforeapplying for state matchingfunds, said Lori Sorenson withIllinois Central Management.For selected proposals, thestate will commit up to 20 per-cent of the project cost, sheadded.

Public-private partnershipsalso receive additional pointson the federal application, soIllinois is seeking requestsfrom public-private projects,Sorenson noted.

Croke anticipated the feder-al government will announce

selected projects on Feb. 16,but cautioned previousannouncements have beendelayed several times. Illinoishas set a Feb. 18 deadline toapply for matching funds.Croke urged people with pro-ject ideas to contact the Broad-band Council “even if it’s (theproposal) not ready for primetime” or they’re unsure whatother entities might join theirproposal.

“The best chance we haveto secure federal funds is onlyif we have a real spirit ofcooperation,” Croke conclud-ed. — Kay Shipman

Farm Bureau leaders have busy sched-ules and attend many winter conferences,but the Illinois Farm Bureau Govern-mental Affairs Leadership Conference(GALC) offers unique opportunities,especially allowing attendees to talk withstate lawmakers and agency officials,according to three past participants.

The 2010 GALC will be Feb. 23-24 inthe Crowne Plaza, Springfield. Generalsessions and workshops on a variety oftopics are designed to provide leaderswith critical information. The early regis-tration deadline is Friday.

“I go to meet with the legislators. It’s amore relaxed atmosphere,” said JeffersonCounty Farm Bureau President Rick Cor-ners.

IFB Young Leader Committee mem-ber Alan Chesnut of Vermilion Countyagreed. Chesnut said he talked with his

own legislators and also met lawmakersfrom other parts of the state — somewho have run for statewide offices.

“That was a big plus. It’s a chance tomake connections I wouldn’t have other-wise,” Chesnut added.

Corners pointed out conversationswith legislators are even more importantin an election year.

A statewide legislative reception Feb.23 will give participants the opportunity

to discuss issues with their legislators andothers involved in the Adopt-a-Legislatorprogram.

The variety of issues discussed at theconference interests Marshall-PutnamFarm Bureau President Kenneth McK-ee, who has attended many GALCs. Notonly has McKee gained information thathas helped him as a county Farm Bureaupresident, he said, but he’s also obtainedinformation that has been helpful for his

other roles in township and county gov-ernments.

The breakout sessions allow partici-pants to ask questions of federal andstate agency leaders, Corners said. It’sefficient because representatives ofmany agencies are in one location, headded.

“It’s well worth it,” Chesnut said.The registration fee is $50 to attend

the first day, $30 for the second day, or$70 for both days. Pre-registration isencouraged.

Hotel accommodations are separateand must be made directly with theCrowne Plaza or the Holiday InnExpress.

For more information or to register,contact your county Farm Bureau officeor go online to {www.ilfb.org}. — KayShipman

Participants say GALC offers many unique opportunities

‘It’s a chance to make connections Iwouldn’t have otherwise.’

— Alan ChesnutIFB Young Leader Committee member

GOVERNMENT


Administration program cuts ‘non-starter?’BY MARTIN ROSSFarmWeek

An administration proposalto target direct farm programpayments — and consequentlyreopen the farm bill — likelywill spark little interest onCapitol Hill, according toAmerican Farm Bureau Feder-ation policy analyst Tara Smith.

But the president’s fiscal2011 budget proposal, releasedlast week, offers producers “asense of how they’re perceivedby this administration” and ataste of the likely debate overthe next farm bill, Smith toldFarmWeek.

The plan proposes toreduce the cap on annual directpayments from a current$40,000 to $30,000, as wellplacing limits on adjusted grossincome (AGI) producers canreceive from farm and non-farm sources to be eligible forcommodity and conservationpayments.

The proposal reportedly isaimed at targeting farm land-lords and other so-called“wealthy” program recipients.

Currently, producers withannual adjusted non-farmincome exceeding $500,000 orfarm income of more than$750,000 are ineligible forfarm payments. The presiden-tial budget proposal wouldreduce income thresholds by$250,000.

Smith stressed the adminis-tration has “absolutely no dis-cretionary authority” to adjust

AGI limits because they areprescribed by the 2008 farmbill. Direct payment reductionsand AGI changes wouldrequire reopening the 2008farm bill, making it a “non-starter,” Smith said.

She noted similar proposalswere raised and rejected duringnegotiations leading to thefarm bill’s approval. RespectiveHouse and Senate Ag Commit-

tee chairmen Collin Peterson(D-Minn.) and Blanche Lincoln(D-Ark.) appeared to shareSmith’s sentiment last week.

Peterson and Lincoln mustsign off on any plan to tinkerwith existing programs.

“The beauty of the presi-dent’s budget is that the presi-dent proposes and Congressdisposes,” Smith said.

“Congress doesn’t have to

do anything with this. There’snothing in this document thatforces Congress’ hand: They(congressmen) ultimately pass abudget; they ultimately passappropriations; they ultimatelypass authorizing language.

“It’s important for folks toknow that before it sends theminto fits of panic that theirdirect payments are going toget cut. Both Senator Lincoln

and Congressman Petersonhave expressed a lack of inter-est in this proposal. I don’tthink anyone wants to openthis farm bill.”

That said, she sees directpayments and payment eligibili-ty as “lightning rods” inprospective 2012 farm billdebate. “We don’t need to thinkabout that until closer to2012,” Smith said.

Expanded trade dollars welcome,but ‘not at the expense of MAP’

ISU seeking growersfor switchgrass project

Illinois State University (ISU) researchers are seeking six to 10farmers for a switchgrass project.

ISU received a U.S. Department of Energy (DOE) grant forthe project. DOE is interested in farm production of switch-grass to begin developing a market for cellulosic ethanol produc-tion, according to Paul Walker, ISU animal science professor andthe project’s lead investigator.

Switchgrass fields will be established during the spring of2010. Researchers are seeking farmers who each will establishabout 10 acres of switchgrass on productive land and growswitchgrass for two years.

Participating growers will receive an annual stipend of $200per acre for their participation. Growers are responsible for allfield operations, but the seed will be provided by grant funds.

Participating producers will be expected to describe their expe-riences at least one field day during the second production year.

Anyone interested in participating or seeking information maycall Walker at 309-438-3881 or e-mail him at [email protected].

The ag budget:Rueful ‘reality’?

Last week’s proposed USDA budget left ag interests withquestions not only about farm programs and trade (see accom-panying stories), but also with concerns about future ruraldevelopment efforts and producer risk management.

Ag Secretary Tom Vilsack last week stated the fiscal 2011 bud-get plan essentially freezes funding for discretionary programs at afiscal 2010 level and thus reflects the administration’s fiscal “reali-ty” — a reality potentially adjusted last week as the U.S. Housevoted to raise the federal debt ceiling by $1.9 trillion.

“However, limits we placed on select programs and effortsto eliminate earmarks and one-time funding actually result in abottom line reduction to our discretionary budget authority ofover $1 billion,” Vilsack related.

Nutrition and food assistance programs (see accompanyingchart) are major beneficiaries under the plan, which proposes$10 billion over 10 years in added funding “aimed at endingchildhood hunger, reducing childhood obesity, and improvingthe diets of children, and raising program performance to bet-ter serve our children.” The American Soybean Association(ASA) noted ag spending — “not including nutrition pro-grams” — is projected to account for a mere 0.5 of a percentof the estimated $3.8 trillion fiscal 2011 budget.

Meanwhile, the administration proposes changes in the feder-al crop insurance program aimed at reducing its cost by $8 bil-lion over a 10-year period. Proposed reductions in reimbursementsfor insurers who offer federally supported policies and other cutswould be in addition to roughly $6 billion trimmed in the 2008 farmbill in part to help provide standing disaster assistance.

While proposed cuts would not impact federal producer pre-mium subsidies, Illinois Farm Bureau risk management special-ist Doug Yoder suggests cuts in reimbursements could trickledown to reductions in claims and other staffing that ultimatelycould impact customer services and costs.

“This is one area where USDA does have more discretion —its negotiating its standard reinsurance agreement (with insur-ance companies),” American Farm Bureau Federation policyanalyst Tara Smith told FarmWeek. “Crop insurance gave $6billion — now, you’re asking it to give $8 million. You can onlymake so many cuts without assuming that at some point,they’re going to trickle down. And $8 billion is a lot to cut.”

Smith questioned the administration’s commitment to a stat-ed goal of “rural revitalization,” given an estimated $10 billionin long-term rural and ag program cuts. Vilsack touted a pro-posed research funding boost, including $429 million forUSDA’s Agriculture and Food Research Initiative in fiscal 2011over a current $262 million, but Smith said new money is aimedlargely at climate studies and strategies.

ASA President Rob Joslin noted ag research was absentfrom last year’s federal stimulus package, though “research isthe driving force behind innovation in American agriculture.”— Martin Ross

As the administration touts a sweeping new“export initiative” — potentially at the cost ofan export program credited with helping U.S.pork producers weather recent H1N1 concerns— commodity groups plan to re-educate Con-gress.

As part of a new export growth initiativeoffered during President Obama’s State of theUnion address, Ag Secretary Tom Vilsack lastweek announced a proposed $234.5 million inthe fiscal 2011 administration budget to help 70U.S. trade groups promote food and ag prod-ucts overseas.

The funding would be allocated underUSDA’s Market Access Program (MAP) andForeign Market Development (FMD) Coopera-tor Program. However, while it supports aboost in FMD funding, the president’s budgetincludes a reported 20 percent ($40 million) cutin annual MAP spending.

The MAP uses USDA Commodity CreditCorp. funds to partially reimburse participantsfor foreign market promotion activities. The2008 farm bill set MAP funding at $200 millionannually through fiscal 2012. American Soy-bean Association President Rob Joslin said hesupports increased FMD funding, “but not atthe expense of MAP.”

U.S. Meat Export Federation (USMEF)spokesman Joe Schuele noted MAP cuts have

been proposed regularly in recent years. Ulti-mately, MAP “always seems to generate excel-lent support on Capitol Hill,” and even amidbudget constraints, “we’re hopeful that will hap-pen again,” Schuele said.

While Schuele said USMEF is not involvedin legislative lobbying, he told FarmWeek MAPhas proven especially effective in helping U.S.beef and pork sellers address potential marketcrises such as disease outbreaks that impactconsumer confidence.

“It seems that each time (MAP cuts) are pro-posed, there’s more education done on CapitolHill about exactly how effective this program isin keeping U.S. products competitive in theglobal market,” Schuele said.

“Probably the best example is our ability tomaintain and even increase demand for pork in cer-tain markets, even in light of the H1N1 situation.

“When H1N1 was all over the news, we hada slump in Mexico for a few weeks, but we real-ly rebounded tremendously, to the point wherewe’ll set a single-year record for pork exports inMexico.”

Under FMD, USDA and trade groups pooltechnical and financial resources for marketdevelopment efforts. USMEF has been allocat-ed $15.6 million in MAP and $1.7 million inFMD funds for the current fiscal year. — Mar-tin Ross

ENERGY


Plan addresses biofuels ‘chicken or egg’ issue BY MARTIN ROSSFarmWeek

Ag Secretary Tom Vilsacklast week outlined a regional,multi-agency approach to bring-ing next-generation, ag-basedrenewable fuels to market.

A newly released federal Bio-fuels Task Force report offers “aroadmap that will require us toset a series of mileposts andguideposts” for cellulosic andother fuels needed to meet tar-gets under the U.S. renewablefuels standard, Vilsack said.

The new plan “clearly delin-eates” individual USDA, U.S.Department of Energy, U.S. Envi-ronmental Protection Agency, andeven Interior Department respon-sibilities in getting new biofuelsfeedstocks “involved in theeconomy and getting them towork as soon as possible.”

USDA will help explore avariety of viable feedstocks,with “each region of the coun-try playing to its strengths.”

In addition, the agency lastweek released details of itsbiomass crop assistance pro-gram (BCAP), which will pro-vide incentives for productionespecially of “non-food, non-feed biomass.”

Vilsack believes BCAPshould address the “chicken or

cost” technology for commer-cial production of ethanol

from corn cobs, switchgrass,and other materials.

egg dilemma”that has stalledbiomass devel-opment todate — theneed to makeproduction ofenergy cropsessential tolarge scale bio-fuels produc-

tion also profitable for growers.BCAP and other provisionsunder the 2008 farm bill address“every phase in which we needinvestment,” from encouragingnew crop production and pro-viding resources to build new“biorefineries” and retool exist-ing biofuels plants to providingincentives for more communi-ties to increase biofuels use.

“It is our hope, over time,that biorefineries dot the land-scape in all regions of thecountry, creating jobs in ruralAmerica,” Vilsack said.

The administration’s fiscal2011 budget proposes fundingfive regional feedstockresearch/demonstration cen-ters through which universities,industry, and federal and stateagencies will accelerate feed-stock research and develop-ment and forge a supply chainto move biofuels to market “as

quickly and efficiently as possi-ble,” Vilsack said.

At the same time, efforts areunder way to develop new biofu-els feedstocks from the existingcorn crop. EPA has scoredethanol made from corn stoveras offering a 130 percent reduc-tion in greenhouse gas emissionsover gasoline, vs. cornstarch-based ethanol at 21 percent.

In late January, TennesseeGov. Phil Bredesen cut the rib-bon for a cutting-edge cellu-losic ethanol demonstrationfacility in Vonore, Tenn. The74,000-square-foot plant hasstarted producing ethanol andreportedly will market “low-

Continued from page 1and burdensome, and definitely not sound science.”

Jackson suggested the retailored RFS2 would contribute $13 bil-lion in additional annual U.S. income by 2022. She refuted sugges-tions that EPA adjusted land use and related greenhouse criteria toproduce a more favorable “outcome” for ethanol and biodiesel.

“Through the public comment process, through a peer reviewprocess that was openly conducted, the (EPA) staff came for-ward with a recommendation that based on what we know now— and based on including an indirect land use analysis — there isno basis to exclude these fuels,” Jackson said.

“In fact, as these fuels get cleaner and more renewable, thereis a real benefit to this country in security and jobs and, ofcourse, the environment.”

RFS2

Tom Vilsack

Budget threatens coal growthIllinois’ coal industry has

tapped a new vein of optimism:Expansion is under way, jobnumbers have rallied, and, with apowerful new partner on board,hopes are high for a cutting-edge“clean coal” facility in Mattoon.

However, hopes for sustainedgrowth in the coal industry arethreatened by a continued admin-istration push for “cap-and-trade” legislation and budget pro-posals Collinsville RepublicanU.S. Rep. John Shimkus equatesto a “coal use tax.”

The administration’s fiscal2011 budget proposes to boostindustry taxes by a possible $2.3billion over 10 years and antici-pates receiving revenues fromgreenhouse gas (GHG) emis-sions caps not yet cleared byCongress.

Shimkus said he found it“unbelievable” the presidentwould bank on revenue frompolicy “that‘s not been enacted,that will not get enacted into law.”

The budget would targetexisting industry tax credits,depreciation allowances, and cap-ital gains treatment. Arguing “Illi-nois is coal,” Shimkus warnedhigher taxes would hurt Centraland Southern Illinois communi-ties.

Coal production statewide has“inched up” from a low of 31million tons in 2003, and theindustry is poised for expansionthat could boost production 20million more tons, Illinois CoalAssociation President PhillipGonet told FarmWeek.

“If you increase our costs(through higher taxes), you makeour product less competitive,”Gonet said. “Is this catastrophic?I don’t think so. But it’s kind ofan annoyance: Here we are tryingto make a comeback, and we’regoing to have to pay higher costs.

“It’s probably not as bad ascap and trade, but I’m sure capand trade will be wormed in heresomewhere. That’s the deathknell for the industry.”

Meanwhile, the administrationproposes to cut $90 million fromthe U.S. Department of Energy(DOE) Office of Fossil FuelEnergy Research and Develop-ment. While that would not “kill”new coal research, Gonet finds it“contrary” to Obama’s claim ofsupporting clean-coal technology.

Illinois coal and economicinterests are awaiting federalapproval for FutureGen, a 275-

megawatt power plant at Mat-toon that would capture carbondioxide underground.

“I don’t see any problem inthe president’s budget for Future-Gen,” Gonet said. However,Shimkus said he is concernedabout funding for a new Tay-lorville Energy Center at whichcoal would be converted into gasfor electrical generation. — Mar-tin Ross

THE READ ON RFS2 Here are some added views on the U.S. Environmental

Protection Agency’s (EPA) ruling regarding corn ethanol’splace in the revised renewable fuels standard (RFS2).

“We still don’t like indirect land use as a factor that goesinto this calculation, but we applaud the announcement thatboth corn and soybean-based fuels qualify under EPA’s(RFS2) designation.”

Philip Nelson,President, Illinois Farm Bureau

“The biofuels industry now has some reliability that will hope-fully encourage investment and development. I am still opposedto the consideration of international indirect land use.”

John Shimkus,U.S. House Energy and Commerce Committee member

Collinsville Republican

“EPA was right to recognize that ethanol from all sourcesprovides significant carbon benefits compared to gasoline. Asstructured, the RFS is a workable program that will achievestated policy goals of reduced oil dependence, economicopportunity, and environmental stewardship.”

Bob Dinneen,President, Renewable Fuels Association

“The U.S. biodiesel industry stands ready to provide the(soybean-based) fuel that will be needed to meet the readilyattainable biomass-based diesel goals established in RFS2.We look forward to working with all industry stakeholders tosuccessfully implement this worthwhile program.”

Joe Jobe,CEO, National Biodiesel Board

“The new RFS2 is a strong framework, and by moving toE15 (15 percent ethanol blends) and increased accessibilityof E85, the biofuels industry can create more long-lasting,high earning jobs that will help transform the way the U.S.and world use and consume fuel.

“At the same time, it‘s important to recognize indirect landuse change modeling is still in its infancy and lacks consen-sus in the scientific community. Moving forward, the U.S. gov-ernment should act thoughtfully and deliberately and contin-ue to study this issue.”

Steen Risgaard,CEO, Novozyme, ethanol industry technology provider

Feds’ sequestration pushgood sign for FutureGen?

Announcement of a new task force and a $4 billion federalcommitment to carbon sequestration technologies last weekleveraged hopes for a cutting-edge Illinois coal research facility.

Last week, federal officials announced a new task forcecharged with accelerating development of carbon capture andsequestration technology, which would trap atmospheric carbondioxide underground, ostensibly reducing potential for climatechange. Energy Secretary Stephen Chu called the task force “acritical part of our response to climate change.”

The administration has set a goal of having five to 10 seques-tration projects online by 2016 and “widespread, affordabledeployment” of carbon capture technologies within 10 years.

That 10-year goal is “necessary and within reach,” said Chu,citing a planned $4 billion federal investment matched by a pro-jected $7 billion from private industry.

Federal funding includes $1 billion in congressional stimulusmoney set aside last year, potentially for the long-delayed Future-Gen coal research/power project at Mattoon. Anthony Pleasant,vice president of the Mattoon-area economic development groupColes Together, was encouraged by the announcement and whatit may mean for FutureGen approval.

“It’s a good sign that they’re trending in this direction,” hetold FarmWeek last week.

According to Pleasant, the U.S. Department of Energy (DOE)likely will announce within the next month whether FutureGenwill move forward. The project, shelved in 2007 but brought backfor consideration by the Obama administration, would store car-bon dioxide within Illinois’ Mt. Simon sandstone formation,beneath the South-Central Illinois facility.

Hopes for FutureGen spiked with the Jan. 30 announcementthat Exelon Corp., one of the nation’s largest electrical utilities,was joining the FutureGen Alliance, the coal-utility coalition thathas spearheaded the project.

Exelon, which boasts roughly $19 billion in annual revenuesand some 5.4 million Illinois customers, “will bring significantindustry support to the project and will further strengthen theAlliance team,” FutureGen Alliance CEO Michael Mudd said.

“This is another very good indication that we’re going to seesome very good news,” Pleasant argued. “One of the biggeststeps left (for DOE approval) is proving that the alliance can signup some new members.” — Martin Ross

LIVESTOCK


Pork producers ‘cautiouslyoptimistic’ about future

A return to profitability inthe pork industry obviouslywould provide near-termhelp for brothers Bruce andBrent Scholl, who own andoperate a hog operation inPolo.

But it also is vital to theirfuture plans: The brothershope to pass their centennialfarm on to the next genera-tion of their family.

They currently are thefifth generation on theoperation, and farm it withthe help of their father,Irvin.

Brent Scholl discussed thesituation last week at the Illi-nois Pork Expo in Peoria. Hewas elected president of theIllinois Pork ProducersAssociation (IPPA) prior tothe event and said his toppriority this year is prof-itability for the industry.

“After two years of los-ing a lot of money, we needto get back to buildingequity,” Scholl, a Lee Coun-ty Farm Bureau memberwho was chairman of theIFB Young Leader Commit-tee in the mid-1980s, toldFarmWeek.

Mark Greenwood, vicepresident of commercial

lending forAgStar Finan-cial Services,reported atPork Expothe ownerequity for hisclients in theswine indus-try the pasttwo years has

declined from about 70 per-cent to less than 35 percent.Hog farmers in 2009 lost anaverage of $25 per head, hesaid.

“I actually think we’ll seepeople in the black (lastmonth) for the first time in26 months,” said Green-wood, who based his predic-tion on improved hog pricesand lower feed costs so farthis year.

Scholl, who recently sold aload of hogs that averaged$50-plus per hundredweight,believes a smaller swine herdin the U.S. and Canada; feedprices that have eased fromall-time highs; and farmers’increased used of futuresmarkets to lock in betterprices for their hogs andinputs will improve the finan-cial situation for hog farmers.

“I think the next four to

five years look better thanthe last four to five years,” hesaid.

The Scholls recently start-ed using distillers driedgrains (DDGs) on their hogoperation and lowered thecost of their feed rations byabout $20 per ton.

Meanwhile, breakevencosts, which topped out near$160 per head, have comedown to about $130 to $135per head, Greenwood said.

“We’ve been in survivalmode the last two years,”said Tim Maiers, director ofpublic relations for IPPA.“Now I think folks are cau-tiously optimistic.”

Maiers noted IPPA lostabout 200 members the pasttwo years, but membershipsince has been holdingsteady near the 1,300 mark.

“It’s not as bad as itcould’ve been,” he said.

Looking ahead, Green-wood believes hog produc-ers in the Midwest have abetter chance improvingtheir financial situationthan those in the South-east due to feed costadvantages, includingaccess to DDGs. —Daniel Grant

Brent Scholl

Swine nutritionist: Ban of antibiotics could backfireBY DANIEL GRANTFarmWeek

A legislative proposal in theU.S. House of Representativesto ban the use of antibioticsin farm animals for other thantreatment of illness couldbackfire, a swine specialistmaintains.

Hans Stein, a swine nutri-tionist and associate professorof animal sciences at the Uni-versity of Illinois, told

FarmWeek the legislation, ifenacted, actually could lead toan increased use of antibioticson farms.

“I think everybody agreessick animals need to be treat-ed,” Stein said last week at theIllinois Pork Expo in Peoria.“But if you take way the con-tinued use of (preventive)antibiotics, you just increasethe amount of antibioticsneeded to treat disease, andyou increase the mortality rate(of livestock).”

behind every decision thataffects the care of our animalsand the safety of the food weeat,” Apley said.

“Unfortunately, there are a

lot of misconceptions andoutright misrepresentationsout there about why and howantibiotics are used in the cat-tle industry.”

That com-bination coulddrive somepork produc-ers, whoalready haveendured two-plus years oflosses, out ofbusiness.

The legisla-tion, if enacted, also ultimatelycould lead to higher foodprices.

“Consumers are the oneswho benefit from low produc-tion costs as you get lessexpensive food products,” hesaid.

Meanwhile, Stein noted thejury is still out on whether thelegislation would accomplishits goal of reducing antibioticresistant in humans.

Some case studies seem tosuggest otherwise.

“The ultimate reason totake it (antibiotics) away (fromlivestock producers) is toreduce the number of resistantmicrobes in humans,” Steinsaid. “But some countries thathave taken away antibiotics inthe last 10 to 12 years actuallyhave seen an increase in resis-tant microbes in humans.

“It’s difficult to interpretthe data,” he continued. “Butit suggests the use of antibi-otics in livestock is not a majorcontributor to resistance inhumans.”

The issue is scheduled totake centerstage this week.The CBS Evening News plans toair a two-part report on theuse of antibiotics in food ani-mals on Tuesday and Wednes-day.

Many in the pork industryattending the Pork Expo lastweek believe the report willcast agriculture in a negativelight. The Illinois Pork Pro-ducers Association earlier thismonth sent a fact sheet aboutthe use of antibiotics in animalag and a contact list to Illinoismedia members so they haveaccess to the ag industry’s sideof the story.

Elsewhere, the NationalCattlemen’s Beef Associationand Michael Apley, a veteri-nary clinical pharmacologist atKansas State University, trav-eled to Capitol Hill last weekto discuss the issue with law-makers.

“It’s extremely importantthat data-driven review andanalysis be the guiding force

Hans Stein

FarmWeekNow.comFor additional informationabout legislation banningantibiotics in livestock, go toFarmWeekNow.com.

‘ If you take way the continued use of(preventive) antibiotics, you just in-crease the amount of antibiotics neededto treat disease.’

— Hans SteinUniversity of Illinois swine nutritionist

Will U.S. be forcedto import itsmeat, milk, eggs?

Chad Gregory, senior vice president for theUnited Egg Producers (UEP), believes livestockproducers are “in for a major fight” if theywant to continue to operate in the U.S.

Activist groups such as the Human Societyof the United States (HSUS) continue to buildmomentum from successful initiatives thatcould limit commercial livestock production,according to Gregory.

States such as California, Arizona, and Flori-da have banned the use of various productionpractices, which include gestation crates for pigs and cages foregg layers.

“California, which is the fifth-largest egg-producing state, hasuntil 2015 before it goes out of (the egg) business,” said Gregory,a native of Gibson City, who spoke last week at the Illinois PorkExpo in Peoria.

HSUS last week made a power move in Ohio when itannounced plans to put a measure on the November ballot that,if approved, could allow HSUS to dictate decisions of the OhioLivestock Care Standards Board.

The board was created last year after Ohio voters approved ameasure, Issue 2, to allow a cross section of experts from withinthe state to set the livestock care standards.

“The enabling legislation hasn’t passed, the board hasn’t beenappointed, and the first discussions on what standards Ohioansfind acceptable hasn’t been held,” said Jack Fisher, executive vicepresident of the Ohio Farm Bureau. “And yet the Humane Soci-ety of the United States is saying, in effect, Ohioans got itwrong.”

Gregory believes the intensity of such moves by activistgroups to eliminate animal agriculture will intensify in the future.

He told Pork Expo attendees the actual goal of some activistgroups is to ban all animal slaughter, stop all hunting and fishingactivities, close zoos, eliminate research on animals, and removeall animal products from the plates of U.S. consumers.

Eventually, the top issue about livestock production “may notbe how it’s produced, but where it’s produced,” he said.

The U.S. egg industry apparently is a primary target of animalactivist groups because it is one of the most concentrated seg-ments of ag.

Gregory reported 200 egg producers operate in the U.S. —compared to 10,000 in 1976 — with an average flock of 1 millionlayers.

If cages are eliminated from current production systemsnationwide, UEP estimates it would require 15 million morechickens and one million more acres of corn and soy production,due to lower feed conversion rates, to maintain current egg pro-duction levels.

“We’re fearful cheaper eggs would come from China, Brazil, orMexico,” Gregory added. “That could pose all kinds of foodsafety issues, environmental issues, and animal welfare issues.” —Daniel Grant

Chad Gregory

PRODUCTION


NCBA president: Farmers must ‘step up to the plate’BY DANIEL GRANTFarmWeek

Steve Foglesong, owner ofBlack Gold Ranch in Astoria,last week was asked what histop priority will be this year asthe newly elected president ofthe National Cattlemen’s BeefAssociation (NCBA).

Without hesitation,Foglesong said, “We need toencourage farmers and ranch-ers to step up to the plate andbecome advocates” for agri-culture.

Otherwise, attacks fromoutside organizations, pro-posed legislation, and misun-derstandings about food pro-duction by consumers could

have a negative impact on theway farmers do business.

“We need to do a much,much better job talking aboutwhat we do,”FoglesongtoldFarmWeek.“That willbe our chal-lenge.”

Foglesongwas electedto a one-yearterm asNCBA pres-ident recent-ly at the Cattle Industry Con-vention in San Antonio.

NCBA members at thatevent also approved a numberof policy recommendationsthat deal with current threatsto the livestock industry.

One key recommendationcalled for reform of the Equal

Access to Justice Act (EAJA).EAJA was established to ensureindividuals or groups with lim-ited financial resources could

seek recourse from unreason-able government actions.

But a lack of federal over-sight allowed EAJA to beabused, particularly by envi-ronmental activist organiza-tions that often target farmersunder the guise of “publicinterest,” according to NCBA.

Non-profit environmentalgroups in a six-year periodfiled more than 1,500 lawsuitsand collected billions of dol-

lars in gov-ernmentsettlements,NCBAreported.

“It’sappalling,”Foglesongsaid.“There areenviron-mentalgroups

funding their activities underEAJA.”

Elsewhere, legislation wasproposed in the U.S. House ofRepresentatives that wouldrestrict the use of antibioticsin livestock production with astated goal of slowing antibi-otic resistance in humans.

New policy approved at theconvention directs NCBA towork to maintain producers’ability to keep their cattlehealthy through the use ofapproved antibiotics.

“We need to make sure thosetools are in our toolbox,”Foglesong said of use ofapproved antibiotics. “In 50years, we’ve got to double theamount of food we producetoday, and we’re not going to dothat with 40 acres and a mule.We need technology” to increasefood production, he maintained.

On the marketing front,NCBA urged Congress to ratifythe U.S. free trade agreementwith South Korea and to workon other market access issues tohelp boost U.S. meat exports.

“We’ve got a backlog ofprotein,” Foglesong said. “Weneed to get serious aboutmoving that.”

‘We need to do a much, muchbetter job talking about whatwe do.’

— Steve Foglesong President of the National Cattlemen’s Beef Association

FarmWeekNow.comFor more on NCBA PresidentFoglesong’s priorities, go toFarmWeekNow.com.

Harsh weather takes toll on state’s winter wheat cropPeriods of harsh weather so

far this winter, particularly thesub-zero temperatures duringthe first half of January, appearto be taking a toll on what’s leftof the state’s wheat crop.

John Brink, a wheat growerfrom Washington County andpresident of the Illinois WheatAssociation, last week appliednitrogen to his crop. And hewas somewhat surprised withwhat he saw in his fields.

“In my opinion, it is inworse condition than I expect-ed it to be,” said Brink, whowas able to plant only aboutone-third of his wheat acreslast fall due to challenges withwet weather and a late cornand soybean harvest.

“It looks like at this point intime there has been some win-terkill,” he continued. “But that

won’t be 100 percent confirmeduntil it comes out of dormancy.”

Frigid temperatures are themain culprit for the poor con-ditions, Brink said.

The statewide temperaturein January averaged just 21degrees, which was 3.8 degreesbelow normal, the NationalAgricultural Statistics Servicestate office reported. Theaverage temperature inDecember, 28.9 degrees, alsowas below normal by 1 degree.

“We had some snowcover,but it was very light and dry,so it didn’t provide much insu-lation,” Brink said.

More than one-fifth of thestate’s wheat crop (21 percent)last week was rated poor orvery poor and 41 percent wasfair. Just 38 percent was ratedgood to excellent.

“In general (wheat croppotential) is probably wellbelow average, at least in myimmediate area,” Brink said.“There are a few fields thatwere planted in early Octoberthat don’t look bad, but thoseare few and far between.”

Illinois farmers managed toseed just 350,000 acres of winter

wheat last fall, which is a recordlow and down 59 percent com-pared to the previous year.

Looking ahead, Brinkbelieves the crop could “holdits own” as long as tempera-tures don’t nosedive again.

Temperatures this weekwere forecast to be in theteens to upper 20s with a

chance of a low temperatureof 10 degrees on Wednesday,according to Heather Stanley,meteorologist with theNational Weather Service.

“We’re not quite done withthe bitterly cold, but we’re notback to negative temperatures,either,” she said. — DanielGrant

2009 county yield estimates will be delayedThe release of 2009 county crop yield estimates will be

delayed in six states for corn and in four states for soybeans,according to USDA’s National Agricultural Statistics Service(NASS).

USDA last week finished re-surveying farmers who had notcompleted harvest prior to the survey for the January crop pro-duction report.

NASS plans to publish county yield estimates for major rowcrops on Feb. 26.

However, county yield estimates for corn in Illinois, Michi-gan, Minnesota, and Wisconsin won’t be published until March26 due to harvest delays.

County estimates for corn in North and South Dakota willbe published on a yet-to-be-determined date.

NASS also will wait until March 26 to publish county yieldestimates for soybeans in Georgia, North Carolina, South Car-olina, and Virginia.

A complete schedule of release dates for 2009 county yieldestimates is available at {www.nass.usda.gov}.

U.S. crop production estimates, based on the January report,stand at records of 13.15 billion bushels for corn and 3.36 bil-lion bushels for beans.

National yield averages in January were estimated at 165.2bushels per acre for corn and 44 bushels for beans. Illinoisyields were projected at 175 bushels per acre for corn and 46bushels for beans.

EQIP funding available for pilot tunnel projectAs part of the Environmental Quality Incen-

tives Program (EQIP), USDA’s NaturalResources Conservation Service (NRCS) willfund a tunnel structure for growing vegetablesand other specialty crops.

Known as high tunnels, the structures are atleast six feet in height, do not have a floor, and arecovered with polyethylene. They create favorablegrowing conditions for vegetables and other spe-cialty crops produced in soil beneath the structure.

A three-year pilot project is being conductedto study conservation benefits and any issuesrelated to the tunnels’ use, according to IllinoisNRCS State Conservationist Bill Gradle.

Ruth Book, Illinois NRCS state conservationengineer, noted Illinois farmers’ experiences anddata will help develop final operating rules andpractice standards in the state and the nation.

“Illinois is one of 38 states participating in thisstudy to verify if high tunnels can effectively reducepesticide or fertilizer use, keep vital nutrients in the

soil, extend the growing season, increase yields, andprovide other benefits to growers,” Book said.

Producers must submit an EQIP applicationand follow specific NRCS rules and standards toreceive technical and financial assistance.

Participating farmers may receive funding forone or more of the tunnels. However, financialassistance for tunnels will be limited to 5 percentof one acre or 2,178 square feet — about theequivalent of a 30-by-72-foot structure — foreach farming operation.

Participation is limited to operations wherecommodity crops were grown previously, and thesame crops again must be grown under a tunnel.

Participating producers will be expected todevelop a conservation plan for theirfarms. Funding recipients also must provideannual reports on the tunnels’ performance.

Any interested farmers should call or visit theNRCS office at a local USDA Service Center andsubmit an application.

IDOA offering organic cost-share fundingThe Illinois Department of

Agriculture (IDOA) has moneyavailable through USDA for the2009-2010 Illinois OrganicCost Share Program.

The program provides cost-share assistance to organic pro-ducers and handlers receivingcertification or continuation ofcertification by a USDA-accred-ited certifying agent from Oct.1, 2009, to Sept. 30, 2010.

Cost-share payments arelimited to 75 percent of certifi-cation costs for an individualproducer or handler up to amaximum of $750 per year.

To be eligible for reimburse-ment, an organic production orhandling operation must belocated within Illinois, complywith the USDA NationalOrganic Program (NOP) regu-lations for organic productionor handling, and have receivedcertification or continuation ofcertification by a USDA-accredited certifying agentbetween the eligible dates.

Under Illinois’ currentagreement with the USDA,producers and handlers mayapply to IDOA for reimburse-ment by submitting the

required documents and a com-pleted application.

Expenses for noncertifica-tion activities, such as, mem-bership associations or farmoperation inputs, are not eligi-ble for reimbursement.

Based the date IDOAreceives a completed applica-tion, reimbursements will bemade on a first-come, first-served basis until the limitedprogram funds are exhausted.

For more information, con-tact Delayne Reeves at 217-524-9129 [email protected].

TRADE


Auction Calendar

Wed., Feb. 10. 11 a.m.328.45 Ac. Hancock Co.George W. Nash II Trust,CARTHAGE, IL. Ufkes

Auction.www.yourauctionpage.

com/ufkesauctionThurs., Feb. 11. 10 a.m.157 Ac. Livingston Co.

Joan A. Rimer and TrudyL. Wilson, DWIGHT, IL.Immke and Bradleys’

Auction Service.www.biddersandbuyer

s.com/immkeThurs., Feb. 11. 9:30a.m. Late Model Farm

Eq. LA PORTE CITY, IA.Backes Auctioneers and

Realty. www.backes-auction.com

Fri., Feb. 12. 10 a.m.Farm Eq. Close-Out.

Tom Fornoff, MANITO,IL. Nehmelman Auction

Co. topauctions24-7.com/nehmelman

Sat., Feb. 13. 10 a.m.124 Ac. Warren Co.

Darius and Betty RankinHeirs, ROSEVILLE, IL.Van Adkisson Auction

Service, LLC.www.biddersandbuyer

s.comSat., Feb. 13. 9:30 a.m.3 Generation Collectionof Farm Eq. Larry and

Clara Julius,FREEPORT, IL. Pro

Auctions, LLC.www.mudcreekfarms.

com/Pro-Auctions.htmlSat., Feb. 13. 10 a.m.

161 Ac. Mercer Co.William J. and MargaretM. Morris, ALEDO, IL.

Steve Relander,Auctioneer.

Mon., Feb. 15. 6 p.m.151.2 Ac. Coles Co.

Elizabeth Thrall Estateand Sycamore HoldingLLC, HINDSBORO, IL.Stanfield Auction Co.

Tues., Feb. 16. 10 a.m.Farm machinery andmisc. Hank Buckles

Estate and Rickard “SlipGleason”, LAKE FORK,IL. Mike Maske Auction

Service.www.maskeauction.comTues., Feb. 23. 10 a.m.82.53 Ac. McDonough

Co. Farmland.Constance Purdum,MACOMB, IL. VanAdkisson Auction

Service, LLC.www.biddersandbuyer

s.comWed., Feb. 24. 10 a.m.322 Ac. Effingham Co.Carl Curtis, EFFING-

HAM, IL. StanfieldAuction and Pierce Farm

Mgmt.Thurs., Feb. 25.Sangamon Co.

Farmland.www.soycapitalag.comTues., Mar. 2. 10 a.m.Farm machinery. Bradd

Farms, Inc., GeneBradd, COOKSVILLE,

IL. Bill Kruse,Auctioneer.

Tues., Mar. 2. ChristianCo. Farmland.

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

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

www.rickrediger.com orwww.biddersandbuyers.

comThurs., Mar. 4. 10 a.m.

Farmland Auction.Lorna, Kurt, Kendall and

Roberta Klokkenga,EMDEN, IL. Nehmelman

Auction Co. topauc-tions24-

7.com/nehmelmanThurs., Mar. 4. McLean

Co. Farmland.www.soycapitalag.com

Fri., Mar. 5. and Sat.,Mar. 6. 9 a.m. BothDays. Consignment

Auction. RANTOUL, IL.Gordon Hannagan

Auction Co.www.gordyvilleusa.comThurs., Mar. 18. Spring

Farm Closeout andConsignment Auction.Agri-Tech, Inc., RAY-

MOND, IL. Mon., Mar. 20. 9 a.m.

Large Multi-FarmerAuction. Okawville, IL.

Riechmann Bros., LLC.Mon., Mar. 22. 9:30 a.m.Large Spring MachineryAuction. TAYLORVILLE,IL. Micenheimer Auction

Service.www.micenheimer.com

MOISTURE TESTER LESSON

Kankakee County Farm Bureau Board member Paula Karlock, Mo-mence, demonstrates a grain moisture tester for Gray School fourthgraders in northwest Chicago. Recently Karlock, Mark Johnson, Mel-ba Novack, and Lisa Habeeb discussed modern agriculture andtechnology during an annual visit with teacher Brian DeVarenne andthe Farm Bureau’s adopted classroom. Farm Bureau leaders helpedstudents with two hands-on activities. (Photo by Chad Miller, Kanka-kee County Farm Bureau manager)

BY PHIL CORZINEGreetings from Tocantins,

where I amjoined by agroup of 13,mostly farm-ers from Illi-nois and Iowa,on a frontiertour of Brazil.

On Thurs-day, we visitedthe small

biodiesel company, Biotins,located near the center of thestate. The 16-million-gallon-per-year plant buys its feed-stock, mostly soybean oil, fromcrush plants in the region buthas plans to add its own crushplant in the next year.

Another stop for the groupwas the North-South Railway,which eventually will providerail access to the northern portof Sao Luis for the center ofthe country, where a large per-centage of the current andfuture production is located.

The new rail line hasreached Palmas and is impres-sive with heavy gauge rail andconcrete ties, but a contractdispute has delayed construc-

tion, and the start date at Pal-mas has been pushed back toAugust of this year.

The group was to visit ourfarms on Saturday (Feb. 6). Iwas there last week, and eventhough the rains have beenuneven for us this year, thebeans look good.

If the rains are normalthrough March, I think we mayhave some fields top 55bushels per acre, and I’m stillhoping for a 45 bpa averagefor our entire 1,290 acres ofbeans.

It’s still a busy time at thefarm. Topdressing of the 122pounds of potash per acre iscompleted, but we continue tohave infestations of insectsthat require a second applica-tion of insecticide. Eventhough we haven’t found anyrust yet, we also are applyingour preventative application offungicide.

As for Mato Grosso andother regions where harvestalready has started, I am hear-ing the same reports thatapparently are being heard atthe Chicago Board of Trade— it looks like it’s going to be

a big crop here in Brazil.

Phil Corzine is general managerof South American Soy, a globalproduction, management, andinvestment company. His e-mailaddress is [email protected].

Phil Corzine

Farmer tour group sees rail line and big soybean crop

Land of Lincoln Purebred Livestock Breeder’s Associa-tion (LLPLBA) Scholarship — LLPLBA is offering two schol-arships of $750 each to one male and one female studentbetween 17 and 20 years of age by Jan. 1 of the application yearand studying an agriculture-related field.

Eligible applicants or their families must be LLPLBA mem-bers and involved in purebred beef, dairy, goats, horses, llamas,sheep, or swine industries.

Applications must be postmarked by March 15. Applicationsare available online at {www.lolpurebredlivestock.com}.

Mail completed applications to: Darrell Rincker, R.R. #1, Box170, Stewardson, Ill., 62463.

Ag scholarship digest

FROM THE COUNTIES


BUREAU — TheYoung Leaders Com-

mittee will sponsor a farmlabor pool listing for BureauCounty residents. The com-mittee will compile a list ofpeople who are looking foragriculture-related work.Deadline to sign up for thelisting is March 19. Call theFarm Bureau office at 815-875-6468 or e-mail [email protected] to beadded to the list. The FarmBureau or the Young LeadersCommittee do not intend thislisting to be an endorsementof any person and will be notbe responsible for any actionsof the workers.

• Farm Bureau Farmers’Market vendors will meet at 10a.m. Monday, Feb. 22, to dis-cuss the upcoming farmers’market sales season. Thoseinterested in selling items atthe market may attend.

CARROLL — TheQuality of Life Action

Team will sponsor a Pretty inPink program from 6 to 8 p.m.Thursday, March 4, at the Naa-man Diehl Auditorium, Mt.Carroll. The program willfocus on breast health educa-tion with a cooking demon-stration, meal, skit, and more.Call the Farm Bureau office at815-244-3001 by Friday, Feb.19, for reservations or moreinformation.

• Carroll County FarmBureau Foundation scholar-ships are available. There arefour $1,000 general ag scholar-ships, a $1,000 HaroldSchmidt Memorial Forestryscholarship, and two $500 Vio-la Rath Memorial scholarships.Applications are available atthe Farm Bureau office or onthe website {www.carroll -cfb.org}. Deadline to returnapplications is March 24.

• Farm Bureau will sponsortwo computer classes — Introto Word on March 8 and Introto Excel on March 15. Classeswill be from 6:30 to 8:30 p.m.and will be held at EastlandHigh School. Cost for mem-bers is $15 per class or $25 forboth. Call the Farm Bureauoffice at 815-244-3001 forreservations or more informa-tion.

COLES — Kevin Rund,Illinois Farm Bureau

senior director of local gov-ernment, will be the speaker atan ag breakfast meeting at 7a.m. Thursday at the 4-H/Extension Building, ColesCounty Fairgrounds. The top-ic will be truck regulations.Cost is $6. Call the ColesCounty Extension office at345-7034 for reservations ormore information.

• Coles County FarmBureau Foundation, RobertM. and Virginia C. MooreMemorial, Jim Shrader Memo-rial, and James Metzger

Memorial scholarships areavailable for students who areor will be studying an agricul-ture-related course. Studentsmust be a Farm Bureau mem-ber or a dependent of a FarmBureau member in goodstanding. Applications areavailable from high schoolguidance counselors, LakeLand College, or the FarmBureau office. An e-mail copyis available fromcolescfb@consol idated. net.Deadline to return applica-tions is 4 p.m. March 15. Callthe Farm Bureau office at345-3276 or 234-2125 formore information.

COOK — Farm Bureauis offering professional

income tax preparation withIllinois Agricultural AuditingAssociation. Available loca-tions are at the Farm Bureauoffice and Country Financialoffices in Schaumburg andSouth Holland. Call Peggy atthe Farm Bureau office at 708-354-3276 for an appointmentor more information.

• Farm Bureau has ChicagoWolves hockey discountedtickets available for the Feb.20, March 7, and April 10games. Call the member ser-vice center at 708-354-3276for more information.

HANCOCK — MikeRoegge, crop systems

educator, will provide an agupdate at 10 a.m. Thursday atthe Towne House Restaurant,Carthage. Call the Extensionoffice at 217-357-2150 byTuesday for reservations ormore information.

KNOX — The YoungFarmers will sponsor a

leadership boot camp for FFAand 4-H students from 9 a.m.to 3:30 p.m. Monday, Feb. 15,at the Best Western PrairieInn, Galesburg. Topics willinclude communications, per-sonal image, etiquette dining,and resume writing. Call theFarm Bureau office at 309-342-2036 or e-mail [email protected] for moreinformation.

MADISON — Theannual meeting will

be at 7 p.m. Friday at theAmerican Legion,Edwardsville. Rita Frazier,radio broadcaster, will be thespeaker. Call the Farm Bureauoffice at 618-656-5191 forreservations or more informa-tion.

MONROE — Theannual meeting will

be at 6 p.m. Saturday, March 6,at St. Mary’s Parish Center,Valmeyer. A silent auction willbe held to benefit the MonroeCounty Farm Bureau Founda-tion. The Sting Connectionswill provide the entertainment.Tickets are $9. Deadline topurchase tickets is Wednesday,Feb. 24. Call the Farm Bureauoffice at 618-939-6197 for

more information.

PEORIA — John Roach,a marketing consultant,

will be the speaker at a meetingat 8 a.m. Tuesday, Feb. 16, atExposition Gardens, Peoria.Call the Farm Bureau office at686-7070 for reservation ormore information.

• Mike McClelland, a clima-tologist, will present a weatheroutlook at 8:30 a.m. Thursday,Feb. 18, at the Farm Bureauoffice. Call the Farm Bureauoffice for reservations or moreinformation.

STEPHENSON — TheDistrict 2 Young Lead-

ers fun night will be from 6 to9 p.m. Sunday, Feb. 28, atEastland Middle School, Shan-non. Basketball and volleyballwill be available. Pizza andpop will be served.

• Stroke Detection Plus willperform screenings from 9a.m. to 4:30 p.m. March 17-18,at the Farm Bureau office.Members will receive a dis-count. Call 877-732-8258 foran appointment or more infor-mation.

•The District 2 YoungLeaders moonlight bowlingwill be from 9 to 12 p.m. Fri-day, March 19, at Spare TimeLanes, Lena. Cost for fourgames and shoes is $5.

• A complete listing of allFarm Bureau bus trips is avail-able at {www.stephenson -cfb.org} under “2010 BusTrips” link. Trips included areDeer Combine Works/KinzeMfg. on March 9; “Gatheringof the Green” Deere conven-tion on March 19; Fair OaksFarms Dairy adventure onApril 17; and Amana Colonieson May 29. Trip flyers areavailable online or reservationsor more information are avail-able by calling 815-232-3186.

WARREN-HEN-DERSON — The

Education Focus Group andYoung Farmers Committeewill sponsor a trucking com-pliance seminar at 10 a.m. Fri-day, Feb. 19, at the FarmBureau office. Jeffrey Alexan-der, Illinois Department ofTransportation complianceofficer, will talk about newlaws and truck audits. Call theFarm Bureau office at 309-734-9401 for more informa-tion.

ADOPTED LAWMAKER CHAT

During a recent stop in Salem, Sen. Matt Murphy (R-Palatine) thirdfrom left, visited with Marion County Farm Bureau leaders, left toright, Steven Brummel, legislative chairman; Edward Gerstenecker,president; and Paul Chitwood, vice president. Murphy, the countyFarm Bureau’s Adopted Legislator, discussed the state budget andall-terrain-vehicle legislation as well as other issues. (Photo byGary Kennedy, Marion County Farm Bureau manager).

PROFITABILITY


Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $31.78-$49.00 $40.9840 lbs. $49.00-$55.00 $54.5750 lbs. n/a n/aReceipts This Week Last Week

18,140 22,222*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 534 Last week 552 Last year 427Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $105-$115; 110-130lbs., $102. Good and choice 1-2: 60-90 lbs., $135.Slaughter Ewes: Utility and good 1-3: $56-$60. Cull and utility 1-2: $56.

Lamb prices

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

This week Prev. week ChangeCarcass $61.82 $62.32 -0.50Live $45.75 $46.12 -0.37

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn01-28-10 40.0 17.8 36.801-21-10 46.2 16.9 23.4Last year 38.4 12.1 28.5Season total 932.5 546.9 661.4Previous season total 667.4 726.2 649.5USDA projected total 1375 825 2050Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $84.00 $83.58 0.42 Heifers $85.00 $83.58 1.42

USDA five-state area slaughter cattle price

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

This week Prev. week Change98.43 96.82 1.61

CME feeder cattle index — 600-800 Lbs.

Agricultural trade aids farmer profitability BY JIM CHARLESWORTH

Abraham Lincoln was astrong supporter of agricul-ture and agricultural trade.During his early years, agricul-tural exports were approxi-mately $25 million, mostly cot-

ton. Agricul-tural exportshave grownover the lasttwo centuriesto more than$100 billion,with a largearray of prod-ucts.

The mostrecent USDA agricultural tradereport estimates fiscal 2009agricultural exports will reach$96.6 billion — the secondhighest on record. The weakerU.S. dollar and positive globaleconomic growth aided the

robust agricultural trade growth.Fiscal 2010 agricultural

exports are forecast to reach$98 billion, $1.4 billion aboveFY 2009. Though the forecastis below the record 2008 level,2010 exports are expected tobe the second highest ever.

A recovering global econo-my is expected to boostdemand for U.S. high-valueproducts. Livestock, dairy, andpoultry product exports areforecast to remain strongthrough 2010.

USDA anticipates that U.S.soybean meal exports in2009/10 will eclipse a 12-year-old record. Sales to Asian coun-tries, especially China, havebeen particularly good. Theforecast for oilseed exports isincreased due to largeexportable supplies and strongearly-season sales, while meal

exports benefit from reducedSouth American competition.

Grains are up due to highercorn export prices, whileincreased global demand forwheat is expected to be mostlymet by foreign suppliers. Horti-cultural product sales areexpected to reach a new recordthis year, due primarily to slight-ly lower processed product vol-umes and lower tree nut prices.

On the import side, fiscalyear 2009 imports fell $5.9 bil-lion from 2008 due to the glob-al recession. However, FY 2010agricultural imports are fore-cast to be up to $77.5 billion.

U.S. agriculture has experi-enced a positive trade balancefor five decades. In 2009, thenet trade balance finished at$23.2 billion. Although this issignificantly lower than the pre-

vious year, it remains well abovethe historical average. Lookingforward into 2010, the net tradebalance is estimated slightlylower due to import growthexceeding export growth.

The U.S.’ overall tradedeficit is forecast to surpass$380 billion this year. Theagricultural sector is an excep-tion, reflecting a positive tradebalance of more than $20 bil-lion for 2010. This is projectedto remain well above the his-torical average.

I remain optimistic agricul-tural trade will continue to cel-ebrate a positive trade balancewhile aiding farmer profitabili-ty well into the future.

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

Jim Charlesworth

Cattle inventory, beef production projected to declineBY DANIEL GRANTFarmWeek

The weak economy, whichhas taken a bite out of beefdemand, could continue toaffect the size of the U.S. cat-tle herd.

USDA last month reportedthe total number of cattle andcalves in the U.S. (93.701 mil-lion head) was down 0.9 of apercent from last year and wasthe smallest cattle inventorysince 1959.

Overall, the number of

beef cows (31.4 million) as ofJan. 1 (see graph) was down 1percent from the previousyear while the number ofmilk cows (9.1 million) was 3percent smaller than a yearago.

“Demand remains thebiggest challenge for the beefindustry in 2010,” said RandyBlach, CEO of CattleFax, aDenver-based market analysisand information organiza-tion.

Blach last month during

the 2010 Cattle IndustryConvention in San Antoniopredicted cattle supplies thisyear could decline by 1 to 1.5percent.

The inventory of all cattleand calves in Illinois as of Jan.1, 1.17 million head, wasdown 2 percent compared tothe same time a year ago.

And beef producers haveyet to show any appetite forexpansion, according to theCME Group’s Daily LivestockReport.

The number of heifersheld back for beef herdreplacement (5.436 million)declined 1.7 percent from ayear ago.

The dip in cattle numbersis expected to lead this year toa 2.8 percent reduction in beefproduction, CattleFax report-ed.

In fact, red meat produc-tion last month declined 6.2percent compared to the sametime last year, USDA’s AgMarketing Service reported.

Meanwhile, CattleFax pre-dicted U.S. beef exports in2010 could increase by 8 per-cent compared to 2009.

“Longer term, the reduc-tion in the beef herd contin-ues to point to smaller U.S.slaughter rates, smaller U.S.production levels, a smallerbeef industry, and higher beefprices,” analysts noted in theDaily Livestock Report.

Blach predicted 2010“should be a better year forthe beef industry” particularlyif there is a rebound indemand.

“Though the supply situa-tion is very bullish, demandmust stabilize in order forprices to turn significantlyhigher,” he said.

Milk price declines; first time since August

The Class III price for milk adjusted to 3.5 percent butterfatfor the month of January was $14.50 per hundredweight. This isa 48-cent decrease from the previous month and the first monthsince August that milk prices have retreated.

Producers are hoping this is simply a resting point and milkprices will move higher once again. Prices at this point are just atbreak-even for most producers.

PROFITABILITY


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CASH STRATEGISTCorn Strategy

�2009 crop: Corn pricesact as though they want to pullout of their 20-week cycle lowbut haven’t been able to con-firm a turn yet. A March closeabove $3.68 should accom-plish that. Increase old-cropsales to 60 percent if Marchrallies to $3.85. We may boostsales even more; check theCash Strategist Hotline frequent-ly. Do not plan to store corninto spring unless you are con-fident of its quality. We arealready hearing of deteriorat-ing conditions.

�2010 crop: If Decemberfutures rebound to $4.10, makea 20 percent new-crop sale.Check the Cash Strategist Hotlinedaily; we could adjust that targetand recommend selling more.

�Fundamentals: Macro-economic problems draggedcorn prices lower this pastweek. However, the newEnvironmental ProtectionAgency guidelines removed anuncertain hurdle regardingdemand for corn to beprocessed into ethanol.Traders should start to talk ofa need for 3 million acres moreto be planted next year to meetdemand.Soybean Strategy

�2009 crop: Forecasts ofeven larger crops in SouthAmerica and macroeconomicinfluences are keeping the soy-bean market on the defensive.However, the decline is gettingoverdone; a rebound shouldsoon occur. Boost sales to 50percent if March rebounds to$9.75. That price or theamount could change at anytime; check the Cash StrategistHotline frequently.

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

�Fundamentals: Produc-tion forecasts continue to risefor both Argentina and Brazil,but the conditions are not uni-versally great as the trademight have you believe. Eventhough the crops appear to beheaded to better productionlevels than last year, we thinkcurrent expectations are get-ting a little too large. While

heat doesn’t seem to “lock in”for more than three or fourdays at a time, temperaturesare high enough to stress tocrops somewhat.Wheat Strategy

�2009 crop: Action inwheat has been choppy withprices gaining modest upsidemomentum on short-coveringactivity. However, there’s still noconfirmation of a 20-week low.March needs to clear $4.96 tosignal the short-term trendmight be turning up again.Make a 10 percent sale if Chica-go March futures hit $5.44,

bringing the total to 90 percent. �2010 crop: Use a rally to

$5.65 on the Chicago Julyfutures to make an initial 25 per-cent sale. Check Cash StrategistHotline daily as this target couldbe adjusted at any time.

�Fundamentals: Themonthly cropprogress/condition reportrecently was released for Kansas.It showed only 56 percent ofthe crop was in good to excel-lent condition, compared to 69percent last month. The regionhas been dry this winter, but thelatest storm tracks have broughtsome modest relief to that state.

Macroeconomic forces maybe starting to become a dri-ving negative force in com-modity markets again. Someof the impact is of a directnature, while some may beindirect via the implicationsmacroeconomic forces arehaving on the value of thedollar, crude oil, etc.

Our problems in the U.S.serve as an example of thestruggle major economies arehaving in turning around from2008’s economic collapse.The latest weekly unemploy-ment claims number releasedlast week was higher thananticipated. The stall in jobgrowth may be a sign the fee-ble economic gains thatoccurred in late 2009 could bestalling out.

Pending home sales areinching higher, but the numberof vacant homes continues torise too. At the same time, thehome foreclosure problem hasnot yet started to significantlydecline, implying sustainedstrength in the housing sectoris still some time off.

Amid the economic strug-gles, many of the major devel-oped economies, including theU.S., are having to deal withongoing government fiscalissues.

Over the last month, fiscalissues in peripheral EuropeanUnion countries have deterio-

Basis charts

rated, dragging the euro lower.That and developments in oth-er major industrial countrieshave shifted investment interestback to the dollar, lifting it toits highest level since last July.

Concern about our mount-ing government deficit, andperceptions it is going to con-tinue at a relatively high levelhad been one factor helpingkeep the dollar on the defen-sive in late 2009. It wasn’tuntil the election of a Republi-can senator from Massachu-setts that anxieties over ourgovernment’s deficit started torecede, allowing the dollar tomore easily appreciate.

The changes in relative eco-nomic strength and fiscalissues are now expected tokeep the dollar strong for thenear future. Not only will thatsubdue buying of dollar-basedcommodities, but dollarstrength itself will be a psy-chological drag on commodityprices as well.

While dollar strength hasdirect implications on demandfor U.S. grains, it has indirectimplications as well affectingvalue perceptions.

Dollar strength also willinhibit demand for the two keycommodities, gold and crudeoil, from the investment com-munity. If prices for thosetwo erode over time becauseof dollar strength, theirdecline will add to the psycho-logical drag on grain prices.

Economic weakness in thedeveloped economies ofEurope and the U.S. will softendemand for energy. That willadd to underlying psychologicalweakness because of a strongerdollar, further underminingenergy prices. In turn, that addsmore to the drag on grain prices.

In short, the changing eco-nomic forces over the nextfew months could become asbig of a drag on grain andlivestock markets as possiblesupply issues. There’s been alot of talk about a possible“double dip” recession, andgiven recent indications, onewonders if that might be astronger possibility than somecurrently perceive.

Cents per bu.

Economic forces weighing on markets

PERSPECTIVES


‘Scientists’ mislabeledin climate change reportEditor:

I find it offensive that youused the word “scientists” inQuick Takes “Climate Sum-mit?” on page 2 in the Jan. 11issue.

These people are at bestfunctioning as pseudoscientistsno matter their training sincethey obviously have not fol-lowed unbiased scientificresearch procedures acceptedand practiced for the last sever-al centuries.

The results of unbiased sci-entific research procedureswould verify or contradict theresults which led to the claimsof “scientific evidence of cli-mate change.”

The “scientists” “requestinga meeting” and use of theword “marginalized” verifiesthe fact that no unbiasedsearching for facts was used. Ifthese “scientists” had usedunbiased scientific researchprocedures they would haveused wording, charts, andgraphs describing and illustrat-ing their procedures and theresults of their work.

Unless the Postal Servicewas delinquent in deliveringthe letter, it was sent to BobStallman after the publicadmission in December thatbiases were used in the socalled “research” done to givethe desired results about globalwarming.

Since the letter most likelywas mailed after this publicadmission, these “40 scientists”

are nothing more than deluded,emotion-driven people.

No matter how much “sci-entific education” these peoplemay have, they have abandonedbasic scientific research proce-dures taught and used in sci-ence demonstrations, educa-tion, and research beginning inelementary school in one’s life.DAVE ZIEBART,Turlock, Calif.

Must stop anti-Americanattack on U.S. farmersEditor:

Farmland preservation ispremised on food production,but in reality it strips you ofyour right to sell off buildinglots and ties the ground up astillable forever.

It pits farmer againstlandowner, as they are notalways the same, and one mustrecognize that the concerns ofthe farmer do not necessarilyreflect the concerns of thelandowner.

But really folks, why wouldany understanding Americanwant to freely give away thedevelopment rights of hisproperty or his neighbor’s?

Once this zoning is passed— and it has been slippedthrough in numerous countiesthroughout this country — theland will be tillable for eternitywith no more rural develop-ment allowed.

What happens when a gov-ernment intentionally pens atrade agreement that is unprof-itable for the farmer orremoves needed subsidies?

You would no longer have thejustifiable option to sell off ahighly profitable building sitefor income.

Cap and trade was proven tobe a blatant lie with the inten-tion to spread the wealth inter-nationally through egregioustaxation.

Don’t be fooled by theseclaims about green house gas-es, they are just as exaggeratedas they are flawed due to theexact same agenda; considerthat the Environmental Protec-tion Agency’s threats are basedon carbon offsets, taxes. It’snot about the environment.

Farm Bureau must addressthese extremely importantpoints and strive to unite patri-otic farmers to combat thisanti-American government andits well-funded allies.

The Champaign CountyBoard is addressing this issuein March, and we should fightit. Contact Mark Thompson [email protected] or217-417-2447.MARK THOMPSON,Dewey

Spend cold dayswith organic ag bookEditor:

In the ongoing debate overGMOs (God Move Over) inrecent issues of FarmWeek, itsurprises me that JimMcCarthy, an Irishman (Nov. 9,2009, column), would be so infavor of it since the press inEurope does a much better jobof informing the public of the

down side of GMOs thanthose here in the U.S.

For example, in India, farm-ers who have grown Bt cottonhave turned sheep and goatsinto the fields to graze theresidue after the cotton washarvested. Many of the ani-mals became sick and somedied. In addition, some peoplewho ate the meat from theseanimals became sick.

Since the introduction ofGM soybeans into the foodsupply, there has been amarked increase in soy-relatedallergies.

How about StarLink? Doesanyone remember it? That wasa fairly well publicized ooops.

In Lawrence Labertew’s let-ter of Dec. 21, he references anarticle he saw in Time magazineby Adam Fisher and mentionsSheryl Crow.

Remember that Time is ageneral news magazine. Itoccasionally prints a story aboutagriculture, but that is not its

stock in trade.Sheryl Crow is a celebrity

musician. I have attended sev-eral organic agricultural confer-ences and read literature fromother conferences that I havenot attended, and Sheryl Crowhas never been a speaker at anyof them.

For reliable information onorganic farming, it would bebetter to ask Neil Kinsey; JoelSalatin; Elaine Ingham, PhD.;and Arden Anderson, D.O.,PhD. for advice. These are justa sampling of people who havereal-world experience withorganic research and produc-tion practices.

Books by these people andmany others are available at sev-eral libraries around Illinoisincluding West Frankfurt, Mr.Labertew’s hometown.

A great way to spend a coldwinter day is in a nice, warmlibrary with a good organic agbook.ROBERT A. SAYRE,Dundas

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LETTERS TO THE EDITOR

One of the hottest agriculturalissues today has to be animal agricul-ture and the animal rights groups’people for the ethical treatment ofanimals (peta) and the humane societyof the United States (hsus).

Yes, their names should be capital-ized, but, personally, I don’t thinkthey are worth it.

Currently, weare devotingtons of timeand money to

consumer education programs con-cerning these issues and, for the mostpart, they are worthwhile efforts.

We are passing along a lot of goodscientific information and explainingthe importance of agriculture to peo-ple who have lost touch with theirfood supply.

The sad thing is one 10-secondcelebrity sound bite backed up by atalk show host wipes out 50 years ofindisputable scientific research thathas been peer reviewed at every turn.

There has been a move lately to putfarmers in front of cameras. I think ithelps, but if you stand in front of amodern livestock facility, you some-times create more problems than you

solve. At that point, we run the risk ofbeing labeled factory farms and envi-ronmental disasters. I think theseefforts should continue, but when itcomes to peta and the hsus (yeah, I

know) I propose a different approach.I’m tired of these groups taking a

chunk out whenever they please. Let’sbite back. Ratings-grabbing reportersare always looking for a good fight, solet’s give them one.

I would love to see a headline or 10p.m. news lead that says, “hsus takes

funding from local animal shelters.”The story could go on to tell how

many people are misled by clever web-sites and ads that get them to donatemoney thinking it will help local ani-mal shelters. The truth is the moneygoes toward lobbying for animal own-ership laws and a vegetarian agenda.

How about, “hsus saves stray cats,lets kids starve”?

One of that group’s ad campaignssports a celebrity offering a gut-wrenching plea for people to send $19a month to save animals. The head ofthe World Food Program says it canfeed a child for 25 cents a day.

I am no math whiz, but I can figureout that’s 76 starving children fed permonth per donor. One of those kidscould end up discovering some med-ical breakthrough or inventing a newpiece of technology. I’m not going tohold my breath for a stray cat to dothe same.

Let’s not leave peta out. You can-not turn on the TV, pick up a newspa-per, or look on the Internet withoutseeing stories about the environment.We need to save forests, prairies,endangered species, and ecosystems.

This group has been famous for

showing shocking videos. Wonderwhat people would think if youshowed videos of mange-infestedstray cats brutally killing a cute littlebunny or a pretty song bird? Thatwould be great on YouTube.

In today’s sound-bite culture, itwould not be long before you mighthear a group of people talking andsomeone mentions the hsus. The nextthing you know someone might say,“Hey, I’ve heard of them, they stealmoney from animal shelters.” Or“peta, yea they support killing endan-gered species.”

Let those groups spend a few millioncountering those claims rather thanchewing on us. I could keep going andprobably come up with several moreexamples, but this is driving me crazy.I’ve got to go get some floss or atoothpick. I think I have a piece ofhsus stuck . . . right . . . there.

David Shupe has held numerous volunteerpositions within Illinois Farm Bureau, bothat the state and county level. He continues tobe active in policy development. Shupe farmsnear Toledo and can be reached at [email protected].

DAVID SHUPE

guest columnist

‘The sad thing is one10-second celebr i tysound bite backed upby a ta l k show hos twipes out 50 years ofyears of indisputables c i e n t i f i c r e s e a r c hthat has been peer re-viewed at every turn.’

Animal rights groups: It’s time to bite back

farmweek february 8 2010 edition

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