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Monday, January 23, 2012 Two sections Volume 40, No. 4

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

agriViSor aND couN-Try Financial are offering farmersa chance to get a risk managementcheck-up via three meetings thismonth and next. ...........................12

ThE amEricaN FarmBureau Federation now supportsdesignation of the U.S. Army Corpsof Engineers as lead agency in cer-tifying river levees. ............................5

ThE STaTE’S ClassroomsFirst Commission is seeking toimprove opportunities for studentsto learn and to reduce duplicativeadministrative costs. .......................2

Nelson: Farm bill foundations already are framedBY MARTIN ROSSFarmWeek

A pre-election farm bill is possible “ifwe don’t have to go back to the startingblocks,” Illinois Farm Bureau PresidentPhilip Nelson advised last week.

In what Nelson deemed the “startingpoint” for 2012’s farm bill debate, theCongressional Budget Office currentlyis “scoring” the projected long-termbudget cost of various com modity pro-gram proposals.

Congressional farm bill testimony isexpected to begin by mid-February, withSenate hearings likely to kick off the dis-cussions, he said.

House-Senate ag committees last fallproposed $23 billion in cuts in com-modity, conservation, and nutritionspending. Based on that target and giventhe American Farm Bureau Federation’s(AFBF) newly approved ag policy out-line, Nelson believes “we can come upwith the dollars Congress is probablygoing to affix to agriculture.”

Meanwhile, other farm groups willchime in with their preferences. Under a“best-case scenario,” Nelson suggests a

farm bill could be voted on by Septem-ber if ag lawmakers are willing to buildon last fall’s existing budget framework.

“If that does not happen, then some-thing probably will come forward afterthe elections, and hopefully we can get itpassed before the end of the year,before the current farm bill expires,” hesaid.

While he views a strong crop insur-ance program as “job No. 1” for law-makers, Nelson argued the need to“keep the avenues open” with regard toa new or modified revenue protection ordisaster-type program.

AFBF backed the concept of a “cata-strophic” program triggered by moredevastating losses while enabling pro-ducers to further buffer risk throughbuy-up insurance policies.

Given that such a program wouldreplace direct and existing counter-cyclical payments, Nelson stressedprogram details and parameters willbe crucial: Too low a revenue guaran-tee might amount to no more than“CAT coverage for Illinois” — a ref-erence to now-defunct basic cata-

strophic crop insurance.A new University of Illinois analysis

suggests AFBF’s program concept asoriginally designed could deliver pay-ments of as much as $2.72 per plantedacre of corn at a 70 percent coveragelevel or $11.09 per acre at an 80 percentlevel.

Soybean growers experiencing a losscould see payments of 68 cents per acreunder 70 percent coverage or $4.40 with80 percent coverage, U of I economistGary Schnitkey projected.

At the same time, in the wake of pro-posed ag spending cuts, SpringfieldDemocrat Sen. Dick Durbin and biparti-san colleagues have spearheaded a so-called “shallow loss” revenue conceptthat would cover more minor revenueshortfalls. That’s an approach congres-sional supporters potentially “are notgoing to let go of easily,” Nelson said.

During a U of I seminar last week,USDA Chief Economist Joe Glaubersaid he anticipated “a pretty long year”in ag policy debate, given the collapse offall budget-deficit proposals combined

with a seemingly irrevocable, “pretty bigchange in direction from where we’vebeen.”

Glauber sees last fall’s $23-billionbenchmark as “kind of the startingpoint” for debate. But he notes “theanalytical issues” involved in evaluating

potential programimpacts “are just verydifficult,” and arguesthat in the currentpolitical environment,“almost any piece oflegislation gets con-tentious.”

As such, Glaubersees odds on the 2012farm bill being passed

in 2012 at “about 50-50.” Lame duckpassage may be the best prospect for2012, he suggested.

“It’s not unusual for farm bills to getpassed in the early months of the nextyear,” Glauber stressed in a FridayRFD Radio-FarmWeek interview. “Itwill get done — it’s just a question ofwhen.”

BY KAY SHIPMANFarmWeek

New regulations that tookeffect Oct. 31 will impact avariety of pesticide applica-tions “to or over water or atwater’s edge,” according to

More on permits coming to GALC

New NPDES pesticide permits to apply to common practices

Leslie Lowry, left, of the Illinois Environmental Protection Agency an-swers a question from Chuck Hotzworth, right, of Hotzworth FlyingService, Virden, while Craig Lant of Good Hope Fertilizer, Good Hope,listens. Lowry explained rules for a new National Pollutant DischargeElimination System (NPDES) pesticide permit during last week’s IllinoisFertilizer and Chemical Association annual convention in Peoria. (Photoby Kay Shipman)

Leslie Lowry with the IllinoisEnvironmental ProtectionAgency (IEPA) water pollutioncontrol division.

Necessity for a permit is aresult of a Sixth Circuit Courtof Appeals decision that pesti-cide discharges into U.S. watersare pollutants, and applicatorsneeded a permit under theClean Water Act.

Lowry at last week’s IllinoisFertilizer and Chemical Asso-ciation (IFCA) annual conven-tion in Peoria discussed thenew regulations and situationsthat would require acquisitionof a National Pollutant Dis-charge Elimination System(NPDES) permit.

A session on NPDES per-mits also will be offered duringthe Illinois Farm Bureau gov-ernmental affairs leadershipconference in February. IFBsubmitted comments to IEPAbased on the organization’sopposition to the regulation.

“Farmers are not exemptfrom (needing) a permit to

apply pesticides to or overwater or ditches on their prop-erty,” Lowry said.

“If you apply product to adry waterway or ditches, but(they) could have water atsome time, you do need toapply for a permit.”

Under the regulations, aperson who needs a permitwould be an operator, asdefined by IEPA, who appliespesticides labeled for aquaticuse to or over water or at awater’s edge, Lowry said. Apermit also would be neededto apply non-aquatic-use pesti-cides to ditch banks and at thewater’s edge.

She admitted neither U.S.EPA nor IEPA has defined “atwater’s edge,” and the distancemay be as far as 10 feet fromthe edge. “You have to useyour best professional judg-ment on whether (an applica-tion is) at water’s edge,” Lowrytold IFCA members.

See NPDES, page 3

Joe Glauber

STATE STREAMLINES PERMIT PROCESS —Obtaining an environmental permit from the state is expect-ed to be faster with a new website {http://www.epa.state.il.us}.

The website also allows applicants and other interestedparties to track the Illinois Environmental ProtectionAgency’s decision-making process. The portal resulted fromstate law that was signed last July.

“This process will help us grow our economy by cuttingred tape for businesses, while also maintaining our strongcommitment to the environment,” said Gov. Pat Quinn.

Several other measures have been or will be implementedin the near future that will increase efficiency and reduce thetime it takes to receive an environmental permit in Illinois.

One tool, known as the Registration of Smaller Sources(ROSS) program, is tailored to smaller sources of air pollu-tion, rather than requiring them to undergo the extensivepermitting process for larger sources.

AFBF PRIORITY ISSUES — American Farm BureauFederation (AFBF) last week issued its list of “priorityissues” for Congress in 2012. AFBF President Bob Stallmansaid the organization must focus its resources on a short listof issues to wield influence in an election year.

“It’s very important that we pass a farm bill in 2012,”Stallman said. “The current one expires at the end of 2012.Farmers need some certainty; they need to understand whatthe rules are.”

Other priority issues for AFBF in 2012 include securingan adequate ag guestworker program, urging the U.S.Department of Labor to maintain the traditional exemptionfor family labor for children of farmers and ranchers, andestate tax policy reform.

BIODIESEL GOES BIG — Renewable Energy GroupInc. (REG), the largest U.S. biodiesel maker, which has twoIllinois plants, raised $72 million in its initial public offering(IPO) last week, pricing shares below a proposed range.

The company, which turns soy oil and other crop andanimal-based feedstocks into biofuels, sold a reported 7.2million shares for $10 each. Renewable Energy earlier hadoffered them for $13 to $15. The stock has begun tradingon the Nasdaq Stock Market under the symbol REGI.

REG oversees 105 million gallons in combined biodieselproduction capacity at Danville and Seneca.

INDEX INDICATIONS — The Bureau of Labor Sta-tistics (BLS) has released its Consumer Price Index for2011, showing an overall inflation rate of 3 percent in 2011after a 1.5 percent increase in 2010. This was the largestDecember-December increase since 2007, according toBLS.

The index for food accelerated in 2011, rising 4.7 percentcompared to a 1.5 percent increase in 2010. The index forfood at home rose 6 percent in 2011 compared to 1.7 per-cent in 2010.

All six major grocery store food group indexes rose in2011, with increases ranging from 2.3 percent (fruits andvegetables) to 8.1 percent (dairy and related products). Theindex for food away from home rose 2.9 percent in 2011after increasing 1.3 percent in 2010.

FarmWeek Monday, January 23, 2012

(ISSN0197-6680)

Vol. 40 No. 4 January 23, 2012

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

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© 2012 Illinois Agricultural Association

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Quick takesgovernment

State billions in the red;tough budget anticipatedBY KAY SHIPMANFarmWeek

The State of Illinois owes an estimated $8.5billion in overdue bills, Illinois ComptrollerJudy Baar Topinka reported last week.

“One year after Illinois raised individual andcorporate income tax rates, the state remains ina precarious fiscal position with persistent pay-ment delays — and the situation is unlikely tosignificantly improve in the near-term,” Topinkawrote.

A major question about the state’s fiscal cri-sis will remain unanswered until the GeneralAssembly passes a new budget, said Kevin Sem-low, Illinois Farm Bureau director of state legis-lation.

“There has been no clear plan presented toaddress the backlog of bills — and the ongoingincreasing costs of pensions, Medicaid, andother operating costs,” Semlow said. “That isexpected to be the focus of the governor’s Feb.2 State of the State Address and the Feb. 22budget message.”

According to Topinka, higher income taxrates and increased consumer spending led to arise in state revenue.

For the first six months of fiscal year 2012,individual income revenue increased $2.6 billionor 65.9 percent while corporate income tax rev-enue increased $180 million or 24.1 percent.

At the same time, sales tax revenue grewby $202 million or 5.8 percent compared tothe previous year. Meanwhile, revenue fromthe federal government has dropped by$1.636 billion or 55.2 percent, primarily dueto a decrease in the federal reimbursement

rate for Medicaid payments.On the spending side, general state spending

has decreased in total by $1.057 billion or 6.5percent through the second quarter of the fiscalyear.

Topinka speculated base spending“will probably increase dramaticallyfor the rest of the year.” Shepointed to higher spending forMedicaid and a “surge” in stateemployee pension spending inthe third quarter.

“It is the obligation of theGeneral Assembly toapprove a state budget. Weanticipate that is whatlegislators’ focuswill be in thespring session,”Semlow said.

Student learning and schoolefficiency lack a general solu-tion for Illinois’ diverse needs— a point that was reinforcedto a state education commis-sion and its chairman, Lt. Gov.Sheila Simon.

There “is not a one-size-fits-all solution,” Simon toldFarmWeek. “We have to bemore creative.”

The Classrooms First Com-mission is seeking to improveopportunities for students tolearn and to reduce duplicativeadministrative costs. The com-mission held public hearingslast year and will give its rec-ommendations to Gov. PatQuinn and the General Assem-bly this year, possibly by April.

A proposal to reduce thenumber of districts statewideeither based upon studentenrollment or the type of dis-trict by creating all unit dis-tricts would be an expensiveoption, based on informationfrom the Illinois State Boardof Education (ISBE).

Unit districts have highschool and lower grades, whiledual districts have either ele-mentary or high schools.

State incentives alone wouldcost $3.1 billion over fouryears to offset staff salary dif-ferences if 478 dual districts

were merged into 101 unit dis-tricts, according to ISBE.

The resulting merger wouldrealign “high performing, well-financed districts at great costin associated incentive pay-ments,” according to ISBE.

“It’s important to know all

of that, including the statutesthat currently provide (consoli-dation) incentives,” Simonsaid. “If we talk about takingaway the incentives, therewould be even less interest inconsolidation.”

District enrollment, bothtoo small and too large, may bedetrimental.

Many people assume, andsome research supports theirassumption, that school enroll-

ment may be too small to pro-vide students with a qualityeducation and be cost efficient,Simon said.

However, districts withenrollments above a certainnumber also are less efficient,she noted.

Illinois’ diversity doesn’tsupport simple formulas, suchas a minimum district enroll-ment, according to Simon.

“Several countywide dis-tricts already exist. I don’tthink we want to push that(geographic size),” Simon said.

Local control of educationis valued, and educationalopportunity is the primary fac-tor that influences educators,parents, and school boards onconsolidation matters, thelieutenant governor said.

“Virtual consolidation” isone idea that has surfaced.Simon described it as virtualsharing of staff, such as a pay-roll clerk, or buying services,such as insurance, to reducecosts. Districts also may usetechnology to share curricu-lum and instructors, she not-ed.

Simon speculated the com-mission may seek public inputon its draft recommendationsthrough future public meet-ings. — Kay Shipman

Simon: One size won’t fit all school districts

There ‘ i s no t aone-size-f i ts-al lsolution. We haveto be more cre-ative.’

—Lt. Gov. Sheila Simon

gOvErNmENT

Monday, January 23, 2012 FarmWeek

Continued from page 1Under IEPA’s definition, an operator is an individual who is

associated with the application, including the one who hires theapplicator or decides to apply the pesticide or the person whoapplies the pesticides or has day-to-day control over pesticideapplications.

All individuals defined as operators who need a permit haveto file a notice of intent with IEPA, according to Lowry.

She explained that water does not have to be present torequire a permit for a pesticide application.

“If you own a pond and it may overflow into the waters ofthe state and you want to treat it (the pond) for weeds with pes-ticide and it has an overflow structure — even if it is not over-flowing at the time but could overflow at any time — you needa permit. (In those cases) farmers, private homeowners, every-body has to file a notice of intention and get a permit,” shesaid.

IEPA staff is “trying to do as much outreach as we can,”Lowry said. “This (permit) is not IEPA’s idea. We are doing thisbecause we are the delegated agency (by U.S. EPA). The onlyway this will go away is by an act of Congress.”

The Il l inois Environmental Protection Agency(IEPA) provided the fol lowing answers to questionsabout new regulat ions for the National Pollutant Dis-charge Elimination System (NPDES) pesticide permit.

Question: If you apply an agricultural herbicide tocrops, but i t a lso is labeled for aquatic use, do youneed an NPDES permit?

IEPA : No, as long as the application of the prod-uct is ter restr ial only.

Q: If you apply the same product to treat ditches,waterways, or areas that may be dry at the t ime ofapplication but could have water in them, do you needan NPDES permit?

IEPA: Yes, the application of pesticides to ditchesor waterways regardless of whether they are dry orcontain water requires an NPDES permit.

Q: If a farmer is applying pesticides to or overwaters of the state or at waters edge (ditches) on hisproper ty, does he need an NPDES permit?

IEPA: Yes, this is not an exempt activity and wouldrequire NPDES permit coverage. If a pesticide isapplied to waters of the state and no NPDES permitis obtained, both the landowner and the applicatormay be held l iable for a violat ion of the Clean WaterAct.

Q : If I own a pond and the pond has an overf lowthat may discharge water to another body of waterthat is within the state or f lows within the state and Iwant to treat my pond with a pesticide for weeds, do Ineed an NPDES permit?

IEPA: Yes. In this case, the pond is considered awater of the state because it has a hydrologic connec-t ion that would lead to a water that f lows within orthrough the state.

Q: Do you need to keep a copy of the NPDES per-mit on your person when applying pesticides to orover waters of the state or at waters edge?

IEPA : No.Q : Do you need a pesticide applicator l icense to get

an NPDES permit?IEPA : No, there is no requirement for a pesticide

applicator l icense prior to obtaining an NPDES per-mit .

Q : Is someone who sel ls pesticides over the count-er required to tel l a customer about the obligation toget an NPDES permit if he applies the product to orover waters of the state or at waters edge?

IEPA : No, the sel ler is not required to inform pes-t icide users of permit requirements and is not l iablefor pesticide applications made without an NPDESpermit.

IEPA answers questionsabout NPDES permits

NPDES

Jan. 23Tillage seminar, RollandLewis Community build-ing, Mt. Vernon.

On-the-Road seminar, 10a.m. Winnebago CountyFarm Bureau, Rockford.

On-the-Road seminar,1:30 p.m. Pearl City firestation. Call 815-232-3186.

Jan. 24Tillage seminar, IllinoisDepartment of Agriculturebuilding, fairgrounds,Springfield.

On-the-Road seminar,9:30 a.m. Menard CountyFarm Bureau, Petersburg.On-the-Road seminar, 2p.m. Mason County FarmBureau, Havana.

Jan. 24-25University of Illinois cropmanagement conference,Gibby’s on the GreenConference Center,Whittington.

Jan. 25Tillage seminar,Celebrations 150, Utica.On-the-Road seminar, 9a.m. Peoria County FarmBureau, Peoria.

Jan. 26 – March 29Illinois Living on the Land10-week course. 6 to 9p.m. Thursdays.University Extensionoffices in Boone,

Sangamon, Stephenson,and Will counties.

Jan. 30On-the-Road seminar, 6p.m. Jackson CountyExtension office,Murphysboro.

Jan. 31 On-the-Road seminar,7:30 a.m. Union CountyFarm Bureau, Jonesboro.On-the-Road seminar, 6p.m. Gambit Golf Courseclubhouse, Vienna.

Jan. 31-Feb. 1 University of Illinois cropmanagement conference,Northfield Inn ConferenceCenter, Springfield.

Feb. 1On-the-Road seminar,noon, GrecianSteakhouse,Pinckneyville.On-the-Road seminar, 6p.m. FS Building, Marion.

Feb. 2On-the-Road seminar,7:30 a.m. Franklin CountyFarm Bureau, Benton,618-435-3616.

On-the-Road seminar, 6p.m. Saline County FarmBureau, Harrisburg.

Feb. 3On-the-Road seminar, 1p.m. LawrencevilleCounty Farm Bureau,Lawrenceville.

Feb. 6On-the-Road seminar, 8

a.m. Christian CountyFarm Bureau, Taylorville,217-824-2940.

Feb. 7On-the-Road seminar,7:30 a.m. Shelby County4-H Center, Shelbyville,217-774-2151.

On-the-Road seminar, 1p.m. Macon County FarmBureau, Decatur.

Feb. 7-8University of Illinois cropmanagement conference,I-Hotel and ConferenceCenter, Champaign.

Feb. 9On-the-Road seminar, 9a.m., Piatt County FarmBureau, Monticello, 217-762-2128.

Feb. 10 Illinois Winter WheatForum, Krieger’s HolidayInn, Mt. Vernon.

Feb. 21On-the-Road seminar, 6p.m. Knox County AgriCenter, Galesburg.

Feb. 21-22 University of Illinois cropmanagement conference,Kishwaukee CollegeConference Center,Malta.

Feb. 24On-the-Road seminar, 1p.m. John WoodCommunity College AgCenter, Perry.

DATEBOOK

IFB leadership conference toutedas ‘one of the best’ opportunitiesBY KAY SHIPMANFarmWeek

Farm Bureau members who haven’t experi-enced a Governmental Affairs Leadership Con-ference (GALC) are missing one of the organi-zation’s best meetings, according to three pastparticipants.

“I’ve told people for years the (GALC) con-ference is the best thing Farm Bureau puts out,”said Vermilion County Farm Bureau memberDavid Sadler.

GALC will offer two days of issue-orientedsessions and workshops Feb. 29through March 1 at the CrownePlaza, Springfield.

Cook County Farm Bureaumember Gerald Kopping point-ed out GALC gives participantsdifferent opportunities, includinga chance to have personal questions answered.In his case, the questions were related to a semithat he had purchased.

With a chuckle, Kopping said he received“answers to questions to keep me out of trou-ble.”

Sadler agreed the breakout sessions deal withpertinent issues and are scheduled so membersmay attend several in which they’re interested.

Kopping said breakout sessions have helped

him stay current on animal agriculture issuesand political issues, which are important tosomeone involved with a political action com-mittee.

Bureau County Farm Bureau manager JillFrueh said she encourages members from hercounty to attend because they are given accessto information related to legislation and otherissues. GALC participants also are able to hearfrom a variety of state agency staff and legisla-tors, she added.

“There are so many aspects rolled into onemeeting,” Frueh said.

Conference registration isbeing offered for either or bothdays. The cost is $50 forWednesday only, $30 for Thurs-day only, or $70 for both days.

Participants may select fromnearly 30 workshop topics that range fromtransportation and environment to local gov-ernment and rural development. A statewidelegislative reception will be conducted Wednes-day evening.

Hotel reservations are due directly to thehotel by Feb. 1.

To register for the conference or to obtainadditional information, contact your countyFarm Bureau or go online to {www.ilfb.org}.

FarmWeekNow.com

To register online for the up-coming GALC conference, visitFarmWeekNow.com.

goverNmeNt


Trade agency reorganization bad shuffle for ag?BY MARTIN ROSSFarmWeek

A White House proposalto merge federal trade agen-cies raises concerns aboutthe U.S. Trade Representa-tive’s (USTR) continuedinternational clout, its role inag trade issues, and theadministration’s overall tradecommitment.

President Obama hasasked Congress to grant him“fast-track” authority toconsolidate USTR and thetrade functions of the SmallBusiness Administration,the Export-Import Bank,the Overseas Private Invest-ment Corp., the Trade andDevelopment Agency, andthe U.S. Department ofCommerce.

The American SoybeanAssociation maintainsUSTR should remain an

noted. He questioned howeffectively a USTR tied to asingle department could con-tinue to play such an impar-tial role.

Because of its independ-ence and size, USTR is “verynimble,” able to respondquickly to trade issues, Bren-ner said. Making it “a sub-unit of a much largerbureaucracy” could impactits response capabilities, hesaid.

Further, the White Houseplan raises questions aboutthe future of USTR’s “agambassador” — a uniquepost with no equivalent inother trade-impacted sec-tors.

While Brenner does notanticipate a rejiggered USTRdevoting “any less effort” toag export issues, he stressedCommerce and other depart-ments “don’t have an agricul-tural focus.”

Proposed consolidationcomes at a time when “wehave a lot of details to workout” regarding a potentialTrans-Pacific Partnership(TPP) agreement, warnedNelson, a USTR TradeAdvisory Committee mem-ber.

He sees multilateral TPPtalks as the next key step in“trying to further reducetrade barriers and open mar-kets for U.S. products.”

independent agency withinthe Executive Office of thePresident, “focusing ontrade negotiations, tradeagreements, and tradeenforcement.”

Arguing “enactment oftrade agreements has been ahard slog with the president,”Sen. Charles Grassley (R-Iowa) fears the plan wouldbump trade down on Oba-ma’s priority list.

Illinois Farm Bureau Pres-ident Philip Nelson notedconcerns that USTR “couldget lost in the shuffle” underthe plan.

Washington trade con-sultant Kyd Brenner toldFarmWeek “the devil’s inthe details” and warnedmoving USTR into Com-merce or another depart-ment (as some speculate)poses some “unintended

consequences.”“USTR is a direct arm of

the White House,” he said.“That gives the U.S. trade

representative stature withtrade ministers in other coun-tries. They understand they’redealing with someone whoworks directly for the presi-dent.

“If USTR were subsumedinto a Cabinet department,the trade representative andhis staff could be viewed ashaving a little less plug-inwith the senior level of poli-cymaking.”

USTR plays “the coordi-nating role” in trade policybetween agencies, Brenner

FarmWeekNow.com

Go to FarmWeekNow.com tolisten to President Nelson’s in-terview with RFD Radio.

Federal food safety proposalbackdoor to single agency?

As the administration mulls proposals to place foodsafety efforts under one roof, Farm Bureau observers argueconsumer protection is best focused in USDA’s wheel-house.

The president reportedly is eyeing possible merger ofUSDA Food Safety Inspection Service (FSIS) and U.S.Food and Drug Administration (FDA) food safety pro-grams.

Illinois FarmBureau Presi-dent Philip Nel-son withheldjudgment on thebudget-directedplan and“whether we cansupport it ornot,” but noted“this is not anew idea.”

Currently, USDA oversees meat and poultry safety inspec-tions, while FDA monitors produce, and the NationalOceanic and Atmospheric Administration providesfish/shellfish inspection except for catfish, which areinspected by FSIS.

A move toward a single food safety authority has beenproposed by lawmakers including Springfield Democrat U.S.Sen. Dick Durbin and subsequently “disposed of many timesover the past decade,” Nelson said.

IFB concerns about a single-agency approach stem from aseeming preference by advocates for FDA control.

Nelson argued consumers are better served through exist-ing interagency “checks and balances,” but ideally with afocus on USDA resources. If a single agency were chargedwith ensuring food safety, FSIS would appear the bestchoice, American Farm Bureau Federation policy specialistKelli Ludlum argued.

“We talk about the expertise that truly resides within FSIS— the very specific work it does with meat and poultry,”Ludlum told FarmWeek.

“For example, FSIS administers HACCP (hazard analysisand critical control point strategies in livestock/meat pro-duction), and inspects every meat product that’s out there.

“That’s definitely a level of inspection that should be pre-served, and a level of expertise you wouldn’t necessarily haveat FDA if you combined these functions.”

Federal agencies already are working to better coordinatefood safety efforts and programs under 2011 food safetyreforms. Ludlum noted improved dialogue particularlythrough the president’s Food Safety Working Group.

While the administration has touted possible budget sav-ings under proposed consolidation, Nelson questionswhether merely “gerrymandering” programs under a “stand-alone” agency “is going to save any money.” — Martin Ross

‘This is not a new idea.’

— Philip NelsonPresident, Illinois Farm Bureau

House small business panel to scrutinize ‘child labor’ rule

Washington lawmakers aregearing up to consider whatconstitutes a “family farm”and the extent to whichyounger family members maybe permitted to work onone.

The House Small BusinessCommittee is planning an ear-ly February hearing to exploreproposed U.S. Department ofLabor (DOL) ag “child labor”rules and their impact partic-ularly for family farm busi-nesses.

Largely at issue is an exist-ing ag parental exemptionwhich allows juveniles under16 to work on their parents’operations.

DOL proposals alreadypose key questions aboutminors being able to perform

farm chores for grandparents,uncles, or other relatives, butAmerican Farm Bureau Fed-eration regulatory specialistPaul Schlegel suggests laborprovisions could idle evensons or daughters.

As stated, DOL guidelinescould restrict activities byfarm children in operationsstructured as a limited liabili-ty company (LLC); a Sub-chapter S corporation thatelects to pass corporateincome, losses, deductions,and credit through to farmshareholders for federal taxpurposes; or a traditionalSubchapter C corporationthat is separate and distinctfrom its owners.

DOL rules could eclipsethe parental exemption

even in some partnershipswhere an operator holds aminority interest, Schlegelwarned.

Final approval of new rulesis expected this year, but amida seemingly narrowing federaldefinition of a “family farm,”Illinois Farm Bureau NationalLegislative Director AdamNielsen sees a congressionalchallenge as likely.

Currently, DOL’s nearly10-year-old “field operations”manual is generally interpret-ed as allowing teens to workfor another family memberwith a “substantial” interestin the farm business.

The new rule leaves a 15-year-old’s ability to work forhis or her own parent “clearlyup in the air” if that parenthas a mere minority interestin the farm corporation orunder a family trust agree-ment between siblings.

“(DOL) is claiming thatthey’re not affecting theparental exemption, and theykeep consciously using theword ‘children’ with respectto the exemption, not‘nephews’ or ‘cousins,’”Schlegel told FarmWeek.

“They are saying they’renot changing anything. Every-body else who’s read this rulesays they’re restricting (theexemption) far beyond what itcurrently allows.”

IFB is working with majormedia outlets to shed light onthe potential impact of DOLproposals on smaller familyfarms and ag education pro-grams. — Martin Ross

RESOURCES


Plant scientist: Input management key to boosting yields, soil content

National supportseen as crucialfor the floodplainBY MARTIN ROSSFarmWeek

Illinois Farm Bureau is counting on some strong new shoul-ders to help bolster Midwest floodplain protections — protec-tions a University of Illinois researcher deems crucial to therural environment as well as the economy.

At IFB’s behest, the American Farm Bureau Federation(AFBF) now supports designation of the U.S. Army Corps ofEngineers as lead agency in setting standards used to federallycertify river levees. AFBF delegates recommended providingfarmers and communities greater leeway in fighting floods anddealing with federal regulation in the aftermath of a floodevent.

Concerns focus on potential Federal Emergency Manage-ment Agency (FEMA) “decertification” of levees that could bedeemed inadequate for future protection because of previousflood damage. Decertification threatens insurance coverage anddevelopment in parts of the Upper Mississippi basin.

AFBF urged federal officials to allow adequate time forrepairs to “deficient” levees before they are decertified andconsider non-threatening, “acceptable levels” of water perme-ability in sand levees. New policy would enable local officials tobolster levees during active “flood fights.”

“Our levee districts are cash-poor, and to meet some of thechallenges in FEMA regulations, it’s going to take a lot of dol-lars they don’t have,” IFB Vice President Rich Guebert Jr.advised.

“We need federal support. AFBF can give us support on anational level so we can address some of the issues we’re seeingon the local level.”

AFBF’s actions underlined the push for updated manage-ment strategies and funding that would provide improved pro-tections along the Mississippi-Illinois system and, ideally, pre-vent measures such as 2011’s intentional breach of northernMissouri’s Bird’s Point Levee.

U of I researcher Kenneth Olson last week reported deliber-ate flooding of the region based on 80-plus-year-old emergencyprocedures has resulted in “long-lasting, if not permanent, agri-cultural damage to hundreds of acres of land.”

While proper drainage has been restored near levees,Olson warned “fields with large and deep gullies located fivemiles from the levee breaches will not be repaired very easi-ly.”

Strategically placed wetlands, water-settling basins, and lev-ees would provide “effective management” in floodplain areas,he said. Olson points to Western Illinois’ Sny Island LeveeDrainage District as a model “for what could be accomplishedwith additional effort.”

But he notes more than half of the district’s annual revenuesare spent on fuel to run pumping stations continuously duringhigh water-runoff periods.

BY DANIEL GRANTFarmWeek

Some previous studies haveclaimed farmers can’t intensifycrop production on existingacreage without having a nega-tive impact on soil organic mat-ter and the environment.

But Bruce Linquist, plant sci-entist at the University of Cali-fornia-Davis, last week at theIllinois Fertilizer and ChemicalAssociation annual conventionin Peoria said studies showfarmers actually can increasecrop yields and boost, not lower,organic matter in soil throughproper management of inputs.

The issue has been in theforefront in recent years as theag industry grapples with thechallenge of boosting food pro-duction to feed a growing popu-lation worldwide.

“We need to increase cropyields by 1.3 percent per year (to

continue to meet food demandwithout changing consumptiontrends),” Linquist said.

“We really have two optionsto do that (without changingdiets). We can expand theamount of land in productionor intensify crop production onexisting farmland.”

Linquist believes the latteroption is the best to boost crop

yields and meet food demand. Italso would reduce the amountof marginal land pulled intoproduction, therefore maintain-ing critical wildlife habitat acres.

He countered the claim thatintensifying crop productionwould drain organic matter fromexisting acres. The use of fertil-izer, whether it’s synthetic ororganic, increases root growthand crop biomass, which endsup back in the soil and actuallybuilds up organic matter,according to the plant scientist.

In fact, 114 long-term stud-ies at 100 locations around theworld showed the use of syn-thetic fertilizer boosted theamount of organic carbon inthe soil by 8 percent.

“Long-term, the use of syn-thetic fertilizer leads toincreased soil organic carboncompared to when it’s notused,” Linquist said.

Concerns about nitric oxideemissions, a greenhouse gasemitted via crop production/fer-tilization, can be counterbal-anced by farmers applying opti-mal fertilizer rates and by meas-uring the emissions compared toper unit of production ratherthan simply measuring theamount of emissions per acre.

“If you (farmers/applica-tors) over-apply (nitrogen fer-tilizer), we see a large spike in(nitric oxide) emissions,” Lin-quist said. “But there is no(environmental) benefit tounder-applying fertilizer (andyield potential is lost). We wantto be at the optimal yield lev-el.”

Linquist recommendedfarmers improve nitrogen useefficiency on their farms byusing the optimal rate andapplying it at the correct timeand placement in their fields.

“We can achieve high yieldsand lower the environmentalburden with good nitrogenmanagement,” he added.

NOT YOUR USUAL AG-CHEM VEHICLE

‘We need to increase cropyields by 1.3 percent peryear.’

— Bruce LinquistUniversity of California-Davis

Gary Ruff, a salesman with Precision Tank and Equipment, closes thehood on an ethanol-powered nationwide series NASCAR car spon-sored by Brandt Consolidated Inc. and displayed last week at the Illi-nois Fertilizer and Chemical Association’s annual convention in Peo-ria. The driver, Justin Allgaier, a Riverton native, finished in third placelast season, his third season as a driver. (Photo by Kay Shipman)

production


Insect pressure evolving in Illinois crop fieldsBY DANIEL GRANTFarmWeek

Insect pressure generallywas low in many Illinois cropfields in 2011.

In fact, densities of somepests, such as bean leaf beetlesand corn borers, were so lowsome researchers have ques-tioned whether it was just atough year for many commoninsects or if seed genetics andmanagement practices alteredpopulations of some bugs.

“Things are changing withregard to insect populations,”Mike Gray, University of Illi-nois Extension entomologistand assistant dean in thedepartment of crop sciences,said recently at the U of ICorn and Soybean Classic inSpringfield.

U of I researchers last yearsampled fields in 47 countiesin the state and found no west-ern corn rootworm adults in24 of the counties.

And densities of corn root-worms approached or exceed-ed economic thresholds in justtwo counties (Lee andMcLean) in the entire survey.

Corn borer numbers also werevery low.

“In many of the cornfieldswe sampled, densities ofinsects were among the lowestthat I have ever observed,”Gray said. “Corn borer densi-ties were off-the-chart low.”

Gray believes rootwormnumbers plummeted due inpart to successive years ofheavy spring precipitationthat affected larval hatch,escalating use of Bt cornrootworm hybrids, and wide-spread use of tank-mix appli-cations.

Counts of many commonsoybean pests, including soy-bean aphids and Japanese bee-tles, also were extremely lowlast year. Gray noted soybeanaphids do not thrive in unsea-sonably hot conditions suchas occurred in July andAugust.

He also believes the fre-quency of pesticide applica-tions (tank mixes) was rampedup last year.

“High commodity priceshave helped to fuel a philoso-phy of insurance pest manage-

ment vs. the preferredapproach of integrated pestmanagement,” Gray said.

He recommended produc-ers this season emphasize fieldscouting and treatment deci-sions based on the use of eco-nomic thresholds.

Gray also noted that whileinsect numbers generally weredown last year, there are sometrends that could be of con-cern in the future.

Stink bugs have been

migrating into the Corn Beltfrom the southern U.S. Brownmarmorated stink bugs lastyear were found in Champaign,Cook, Kane, and McLeancounties.

“It feeds on everythingfrom apples, grapes, and toma-toes to corn and soybeans,”Gray said. “This thing is diffi-cult to control.”

There also is concern cornrootworms could be develop-ing resistance to Bt corn. Bt

corn failures were observedlast year in Henry, LaSalle, andWhiteside counties.

“In a lab, we can take west-ern corn rootworms and inthree generations developresistance (to Bt varieties),”Gray said. “We have notproven resistance (in fields).All we know is there have beensome Bt failures.”

Other management optionsexist as rootworms also aresusceptible to Herculex.

Low in 2011

U of I research shows planting date has little effect on nitrogen uptake

The planting date of corncertainly can affect its yieldpotential.

Corn planted in mid-June attwo University of Illinois trialslast year in Southern Illinoisyielded 10 to 40 percent lessthan corn planted in Aprilthrough late May, according toSteve Ebelhar, agronomist atthe U of I Dixon Springs AgCenter.

“We have a wide window toplant corn in Southern Illinois,

but it’s not as wide as wehoped,” Ebelhar toldFarmWeek last week at theIllinois Fertilizer and ChemicalAssociation’s annual conven-tion in Peoria. “If you canplant corn before the end ofMay, you can get pretty reason-able yields.”

Nitrogen uptake, on theother hand, is not affected asmuch by planting dates, basedon recent research.

“The responses to N wereabout the same (in field trials),regardless of the plantingdate,” Ebelhar said. “We don’tsee a need to increase N ratesbased on the planting date.”

The same held true forcorn-on-corn, according to theresearch.

Yields in many areas wereconsiderably lower last year forcorn-on-corn compared to acorn/beans or corn/wheat -/beans rotation, but the N ratein many cases had little to dowith that outcome.

Emerson Nafziger, U of IExtension agronomist, recent-ly said the real problem withcorn yields, particularly forcorn-on-corn in 2010 and2011, was a lack of water dur-ing the critical grain-fillingperiod.

Nitrogen typically enterscorn plants in water dropletsthrough the roots. So theamount of nitrogen availablein the soil didn’t matter muchlast July and August when pre-cipitation dried up or was non-existent across much of thestate.

“We didn’t see a response(in corn-on-corn yields) byadding additional N,” Ebelharsaid.

U of I research also foundlittle yield response when itcompared broadcast fertilizerapplications vs. deep-bandapplications, according toFabian Fernandez, U of IExtension assistant professorof soil fertility.

Research, however, showeda yield bump in strip-till cornvs. no-till corn.

“The data indicates there isa benefit for strip-till,” Fernan-dez said. “It very likely is relat-ed to water availability (instrip-till systems) andimproved nutrient availabilitybecause of that water.”

U of I researchers in thefuture plan to study nitrogenremoval rates in corn to see ifthe rates have changed due tohybrid advancements, Fernan-dez added. — Daniel Grant

Recent University of Illinois research has not found a need to increasefertilizer application rates based on planting dates. U of I research alsohas found little if any economic benefit of boosting nitrogen rates aboveoptimal levels in corn-on-corn. Nitrogen rates were discussed last weekat the Illinois Fertilizer and Chemical Association’s annual convention inPeoria. (File photo)

sustainability


Campaign links fertilizer to ‘little sprouts’’ healthBY MARTIN ROSSFarmWeek

Good nutrition is crucialfor little sprouts, whetherthey’re germinating in thefield or playing in the yard.

That’s the core message ofa campaign by the Nutrientsfor Life Foundation designed,according to Executive Direc-tor Harriet Wegmeyer, to“make fertilizer a little moresexy.”

“Fertilizer is Life’s MainIngredient” emphasizes theimportance of soil and cropnutrition to human nutrition

kinds of little sprouts grow.”Nutrients for Life has

focused awareness efforts at

National Science TeachersAssociation regional andnational meetings in particular.For information on the group,visit www.nutrientsforlife.org}on the web.

The foundation’s icon is thelate Norman Borlaug, themicrobiologist largely creditedwith powering the world’sagricultural “Green Revolu-tion” of the 1940s-70s. TheIowa-born Nobel Prize winner

helped put new cereal cropstrains into extensive produc-tion in order to feed the devel-

oping world.“You go to

Mexico and peo-ple know whoNorman Borlaugwas, because hegave them theability to sur-vive,” Wegmeyersaid. “What dofarmers inAfrica want?They want seeds,they want irriga-tion water, andthey want fertil-

izer. With those three things,they can do anything.

“In the United States,we’re very fortunate, and wedon’t see the same value infertilizers. But across theglobe, with the populationgrowing, they absolutely areneeded.”

and health, via childhoodimages, cheery catchphrases,and healthy recipes.

The foundation providesscience-based information forteachers and students about

the benefitsof fertilizerin food pro-duction and“preservationof healthygreenspaces.”

“Makingthat link

between fertilizer and food iscritical,” Wegmeyer toldFarmWeek at AmericanFarm Bureau Federation’srecent annual meeting. “As asociety, we’ve gotten furtherand further removed fromthe field. Where’s fertilizer inall of this? A lot of thetimes, it’s frankly gotten lost.We’re trying to put in back in

a creative and fun way.”She underlines the need for

expanded nutrient use as theplanet moves pastthe “phenomenalmark” of 7 billionpeople. The foun-dation’s basicABCs are N, P,and K (nitrogen,phosphorous, andpotassium), andWegmeyer empha-sized the value ofboth commercialfertilizer andorganic nutrients,“as long as we’reusing the rightproduct in the right place atthe right rate.”

The foundation wraps all ofthis into classroom-friendly,consumer-relatable recipecards offering a variety ofspritely slogans, including:

• “Thank mom for the pan-cakes and N.P.K. for the ingre-dients.”

• “Every recipe starts withthe same essential ingredient.”

• “Fertilizer: helping all

Stover research cites cornfuel AND food potential

It began as an effort to bolster bioenergy resources and improveper-acre sustainability and profitability.

But Monsanto’s Steve Peterson and his colleagues have discov-ered that corn stover can sustainably fuel meat and milk productionas well as sedans and SUVs.

In an effort to gauge stover’s potential as aethanol feedstock, Monsanto, Archer DanielsMidland Co. (ADM), and Deere and Co. havefound it offers considerable value in dairy or beefrations, especially given high corn prices.

Treating stover with lime accelerates break-down and improves digestibility of high-fiberresidues, according to Peterson, Monsanto bio-fuels product manager. Treated stover offers arelatively cheap corn supplement, extractingmore feed value per acre, he said.

With some 80 million tons available annually across the Corn Belt,stover could significantly boost fuel and feed supplies, Peterson said.

“It’s enabling feeders to save a tremendous amount of money ona per-head basis,” he told FarmWeek. “They’re saving $20 to $30 perhead feeding stover. It’s a perfect way to enhance the sustainabilityand lower the carbon footprint of an acre of corn. We see this as atremendous opportunity.”

Monsanto, ADM, and Deere launched the project four years ago.Amid projections that corn yields could double by 2030, Petersonwarned more residue will require more effective stover management.

But stover is a tough nut to crack: The harvest window is tight,improper harvest techniques can damage fields, nutrient contentvaries greatly based on moisture and other factors, and Petersonnotes it’s “hard and abrasive.” Conventional hay balers and equip-ment are unsuitable for stover collection; researchers discardedseveral broken rakes before identifying the right heavy-duty model.

Collection research also shed light on harvest sustainability. Rak-ing at an oblique angle to rows preserves the base of the stalk,which contains higher levels of nitrogen, potassium, and phospho-rous for soil nutrition.

Peterson is enthused by stover’s feed value, but hasn’t aban-doned hope for stover-based biofuels. Despite “a very difficultfinancial and policy environment,” Advanced Ethanol CouncilExecutive Director Brooke Coleman reports the first wave of“advanced ethanol” plants are under construction in several states.

Peterson anticipates a “breakthrough” in microbial enzymedevelopment that will enable low-cost processing of cellulosicmaterial.

“The work we’re doing today allows us to build the infrastruc-ture to handle the large volumes of material we’ll need for cellu-losic ethanol and additional corn ethanol, also,” he maintained. —Martin Ross

Steve Peterson


CONGRATULATIONS TO THE WINNERS

2011 Illinois Farm Bureau Photo Contest for Members

HONORABLE MENTION

FROM

THE

FRON

T POR

CH

GENE

RATIO

NS: F

rom

one t

o ano

ther

IF BA

RNS C

OULD

TALK

John Diedrich / Dekalb COunty Kippi Wright / Edwards COunty

Vanessa Gall / madison COunty Ronald Hart / Clay COunty Rita Burrows / henry COunty

Karen Logeman / massac COunty ClaudE OESTERREICHer / lee COunty

Karen Warfel / Champaign COunty


GRAND PRIZE AWARD / Jamie Baker

MEMBERS CHOICE award / Valerie McVaigh

2ND PLACE WINNERS

1ST P

LACE

WIN

NERS

1st P

LACE

Gene

ratio

nS

Hono

rabl

e Men

tion

From

the f

ront

porc

h

Karen Logeman / Massac COunty From the front porch

Rachel Green / Cumberland COunty If Barns could talk

Nathan Peterson / DuPage CountyIf barns could talk

Kelbi Ervin / vermilion COunty From the front porch

Michelle Faulkner / Henry COunty Generations: from one to another

K

To view all entries from this year’s contest, visit Ken Kashian’s Photo Gallery at www.ilfb.org

livestock


The 44th annual Illinois Performance

Tested Bull Sale will be the lead off event of

the 2012 Illinois Beef Expo.

The sale will be held Feb. 23 at the Illi-

nois State Fairgrounds Livestock Center in

Springfield. Action will begin at 11 a.m.

There are 100 elite performance-tested

bulls consigned for the sale.

The breakdown of cataloged bulls

includes 65 Angus, 29 Simmentals, 4 Polled

Herefords, and 2 Red Angus.

The sale catalog, with pictures, can be

viewed at the website

{www.IPTBullSale.com}.

Requests for sale catalogs also can be

made by contacting Dave Seibert, sale man-

ager, at 309-339-3694 or by e-mail at seib-

[email protected].

Other activities, including the livestock

judging contest, Junior Beef Quiz Bowl,

livestock equipment auction, and junior

steer and heifer show, will be held Feb. 24-

26 during the Beef Expo at the Illinois State

Fairgrounds.

A complete schedule of events is available

at the website {www.illinoisbeefexpo.com}.

For more information, contact the Illinois

Beef Association at 217-787-4280 or visit

the IBA website {www.illinoisbeef.com}.

Feb. 23 bull sale to kick off the 2012 Illinois Beef Expo

Feed prices could moderate by second half of yearBY DANIEL GRANTFarmWeek

Feed prices are expected to remain athistorically high levels for at least the nextsix months before possibly softening inthe second half of this year.

USDA recently forecast a 4.6 percentreduction in beef production and 2 per-cent smaller broiler supplies in 2012compared to 2011, which could reducefeed demand.

Meanwhile, recent rains in thedrought-parched southern U.S. haveimproved pasture conditions there whileprojections of more corn production inthe U.S. would ease a tight supply of thatcrop.

“Feed is going to be expensive againthis year,” said Ron Plain, ag economist atthe University of Missouri. “But pricesshould moderate a bit as we move

through the year, at least once we getclose to harvest (assuming a favorableyield outlook).”

Plain projected corn production thisyear will increase due to improved yieldsand increased acres.

A recent Farm Futures survey of farm-ers nationwide estimated corn plantingsthis year will increase nearly 2 percent,from 91.9 million acres to 93.6 millionacres.

Meanwhile, the International GrainsCouncil last week projected global cornproduction this year will increase 4.2 per-cent, which could ease tightness in sup-plies and reduce feed prices.

Ending stocks of corn, currently at6.7 percent of projected use, are at thetightest level since the stocks-to-use ratiodipped to 5 percent in 1995-96.

“Corn prices may have pulled back

from the record levels last summer, but(at a range of $5.50 to $6) they remainwell above historical averages,” accordingto authors of the CME Group Daily Live-

stock Report.Plain said it could be touch-and-go for

livestock returns this year, depending onfutures prices.

“I think there will be a slight profitfor hog farmers in 2012, but it dependson when you do the calculations of cornand hog futures,” Plain said.

Plain usually recommends hog pro-ducers offset risk by hedging their hogsbut with so much price volatility he saidproducers should hedge hog prices onlyif they hedge their feed or grow theirown feed.

“If you want to lock in prices, hedgeboth (hogs and feed),” he said.

Price volatility isn’t the only risk inlivestock production. Any trade disrup-tions (23 percent of all pork producedin the U.S. was exported last year) ordownturn in the world economy couldpush margins from black to red.

Bears, will deliver a motiva-tional speech during the com-mercial production seminarsat 1:30 p.m. on Feb. 1.

The University of IllinoisResearch and Extension

Center also will be openboth days on the trade showfloor and will offer informa-tion to pork producers aboutreproduction, feeding/nutri-tion, and manure manage-

ment/air emissions.For more information or

to download the full Exposchedule, visit the IPPAwebsite at {www.ilpork.com}.

The Illinois Pork Expo,billed as the largest pork-spe-cific trade show in the state,will be held Jan. 31 and Feb. 1at the Peoria Civic Center.

The trade show will beopen from noon until 6 p.m.on Jan. 31 and from 8 a.m. to4 p.m. on Feb. 1.

Other activities at theExpo on Jan. 31 will includethe Illinois Pork ProducersAssociation (IPPA) re-organi-zation meeting, pork produc-tion auction and reception,

and the “Generations ofCommitment” recognitionprogram followed by enter-tainment from comedian Tay-lor Mason.

Educational seminars willbe held throughout the dayon Feb. 1. One track of theseminars will focus on pure-bred seed stock and showpigs while another will focuson commercial production.

Emery Moorehead, whowas part of the 1985 SuperBowl champion Chicago

Illinois Pork Expo slated Jan. 31 – Feb. 1 in Peoria

‘But prices should mod-erate a bit as we movethrough the year, atleast once we get closeto harvest.’

— Ron PlainUniversity of Missouri

ag economist

BY KAY SHIPMANFarmWeek

A nationwide program is working to linkmore schools directly with farmers in variouscapacities, according to the state’s liaison forthe Farm to School Network.

Julia Govis, the network’s state liaison and anew University of Illinois Extension employee,recently explained the network and its poten-tial implementation in Illinois during the Illi-nois Specialty Crops, Agritourism, and Organ-ic Conference.

The network marked having programs in everystate on Feb. 14, 2011. The Illinois website is{www.farmtoschool.org/state-home.php?id=35}

Farm to School “does not tell communities howto do things. We try to encourage growers and helpmake connections to local schools,” Govis said. Forexample, those farmers may sell produce and prod-ucts to be served in school cafeterias or serve as edu-cational resources, she added.

One tool to connect farmers with schools is

through the existing MarketMaker online data-base/marketing program, according to Govis. Cur-rently, she is working with the MarketMaker special-ists to expand the database and allow listed farmersto designate their interest in selling to schools.

“We’re trying to get all schools interested inbuying from producers to list what they want,”Govis added.

Another thrust of Farm to School is educatingstudents about nutrition and the sources of theirfood. Govis discussed the importance of educa-tional information about nutrition and farming.

For many years, Illinois Agriculture in theClassroom (IAITC) has developed and distrib-uted a variety of educational materials aboutfood and nutrition. IAITC also provides work-shops, tours, and summer institutes for educa-tors to help them incorporate ag-based infor-mation into their existing curriculum.

Many local AITC groups also work directlywith classroom teachers to offer farmer speakersand demonstrations.

education


Program seeks to link students, farmsUSDA offers online toolsfor energy efficiency

USDA has launched anenergy website that providesviewers access to energy effi-ciency and renewable energydata. The site is at{www.usda.gov/energy}.

Illinois’ renewable energyentrepreneurs now “haveanother invaluable resource— a guide to the data andfunding available to maxi-mize their efforts,” saidColleen Callahan, RuralDevelopment state director.

Since 2003, USDA has

invested $120 million ingreen energy infrastructurein Illinois, according toCallahan.

USDA’s energy websiteprovides access to all theagency’s energy resources,including agricultural,forestry, economic, andsocial data. This is done inpart through a set of newweb-based tools: the USDARenewable Energy Invest-ment Map, the RenewableEnergy Tool, and the EnergyMatrix.

In addition, the site pro-vides a link to all USDA stateand local offices and energyresource coordinators.

Auction CalendarMon., Jan. 23. 5:30 p.m. Farmland.Hilligoss Family, TUSCOLA, IL. LukeLee Gaule, Auctioneer. www.lukelee-

gaule.comTues., Jan. 24. 5:30 p.m. Farmland.Hausman 2009 Limited Partnership,SPRINGFIELD, IL. Luke Lee Gaule,Auctioneer and Farmland Solutions,Kent Kraft, Broker. www.lukelee-

gaule.comWed., Jan. 25. Online Auctions. Big

Iron. www.bigiron.comWed., Jan. 25. 10 a.m. Knox Co LandAuction. William M. Swanson Estate,GALESBURG, IL. Van Adkisson

Auction Service, LLC. www.bidder-saandbuyers.com

Thurs., Jan. 26. 10 a.m. 165. Ac.Winnebago Co. ROCKFORD, IL.MGW. www.mgw.us.com

Thurs., Jan. 26. 10 a.m. Peoria CoLand Auction. Ruth D. Claybaugh TrustB, ELMWOOD, IL. Cowser Auction andFarm Realty. www.illinoisauction-

eers.orgThurs., Jan. 26. 10:30 a.m. RealEstate. Agracel, Inc., Robert

Lafenhagen, SALEM, IL. KleemanAuction & Appraisal Co. www.kleem-

anauction.comFri., Jan. 27. 11 a.m. Greene CountyLand Auction. Estate of Josephine M.Hobson, CARROLLTON, IL. MossAuctioneers. www.auctionzip.com

Member #21727Sat., Jan. 28. 9:30 a.m. RetirementAuction. Norval and Dorothy Sherley,MACEDONIA, IL. Jamie Scherrer

Auction Co. www.jamiescherrerauc-tion.com

Sat., Jan. 28. 10 a.m. Farm machineryand Livestock eq. Gerald and JuanitaHenry, SADORUS, IL. Stanfield

Auction Co.www.stanfieldauction.com

Sat., Jan. 28. 10 a.m. Kendall Co.Land Auction. Harold Olson Estate,MORRIS, IL. Black and Black.

Tues., Jan. 31. 10 a.m. Warren CoLand Auction. John F. Gardner,Trustee, MONMOUTH, IL. VanAdkisson Auction Service, LLC.www.biddersandbuyers.comWed., Feb. 1. 6 p.m. 86 Ac.

Cumberland Co. Stanford H. SholemLand Trust, TOLEDO, IL. Stanfield

Auction Co.www.stanfieldauction.com

Thurs., Feb. 2. 10 a.m. Land Auction.Earl Seltzer Trust, MORRISONVILLE,IL. Aumann Auctions. www.auman-

nauctions.comThurs., Feb. 2. 158 Ac. Kankakee. SoyCapital Ag Services. www.soycapita-

lag.comFri., Feb. 3. 10 a.m. Land Auction

Warren Co. John A. Taylor,ROSEVILLE, IL. Van Adkisson AuctionService, LLC. www.biddersandbuy-

ers.comSat., Feb. 4. 9:30 a.m. Retirement

Auction. Wright J. Cotter, GALATIA, IL.Jamie Scherrer Auction Co. www.jami-

escherrerauction.comSat., Feb. 4. 10:30 a.m. Land Auction.Ruby Nell Deckard, CAMARGO, IL.Gordon Hannagan Auction Co.www.gordyvilleusa.com

Sat., Feb. 4. 10 a.m. Land AuctionRandolph Co. WATERLOO, IL.

BuyAFarm.comMon., Feb. 6. 10 a.m. Farmland

Auction. Rex Moreland, RAMSEY, IL.Cory Craig, Auctioneer.www.corycraig.com

RISK MANAGEMENT


AgriVisor to offer risk management check-upsFarmers interested in receiv-

ing a “check-up” on their riskmanagement plans may attendone of three upcoming meet-ings sponsored by AgriVisorLLC and Country Financial.

Meetings will be held Jan. 31at the Holiday Inn in Mt. Ver-non, Feb. 1 at the NorthfieldSuites in Springfield, and Feb.2 at University Plaza inDeKalb.

All meetings will begin at 5p.m. and include a ribeye din-ner. Cost is $19 per person. Adrawing for an iPad will beheld at each location.

“The meetings will be a‘one-stop shop’ where farmerscan learn about many key fac-tors that may affect their riskmanagement plans in 2012,”

said Clayton Pope, manager ofAgriVisor.

“Today’s markets are sovolatile; our goal with thesemeetings is to provide farmers

with spe-cific toolsto helpthemreducetheir risk toenhancethe

prospects for a successfulgrowing season.”

Each meeting will include aweather outlook from MikeTannura, owner of T-stormWeather; an economic outlookby Kurt Bock, Country Finan-cial chief executive officer; andgrain market insights from

Dale Durchholz, AgriVisorsenior commodities marketanalyst.

Pope also stressed farmershave a key component to man-age risk on their operation:crop insurance. “The federalcrop insurance deadline this

year is March 15,” he said. “Now is the time to make

critical decisions. There aretremendous risk managementopportunities available fromthe use of crop insuranceproducts. AgriVisor wants toteach farmers how to effective-

ly take advantage of thoseopportunities.”

Registration closes Friday.Call your local Country Finan-cial representative, countyFarm Bureau office, or visit{www.agrivisor.com} for moreinformation and to register.

56 IFB members named to Action TeamsThe Illinois Farm Bureau

Board of Directors has named56 Farm Bureau members toserve on the 2012 IFB ActionTeams.

Action Teams will meettwice in 2012 to develop rec-ommendations to the IFBboard for statewide organiza-tion projects and programs ineducation, membership, quali-

ty of life and public relations.The winter meeting is

scheduled for Feb. 16 inBloomington.

Recent Action Team proj-ects include educational com-modities posters, a mini ses-sion at IFB annual meeting oncultivating healthy farmers,plans for an ag ambassador atthe college level, and mass

transit signs in Chicago fea-turing messages that safe andhealthy food is produced byIllinois farm families.

Team members, includingchairmen and vice chairmen,and their county Farm Bu-reaus are listed below.

Education: Carleen Paul,Madison, chair; Dana White,Woodford, vice chair; SharonBarr, Hancock; Andrew Bow-man, Knox; Mike Chwasczins-ki, Washington; Audrey Davis,McHenry; Tom Feltes, Du-Page; Bob Johnson, Grundy;David King, Tazewell; GaleKoelling, Washington; PaulMariman, Macon; LeonardSheaffer, Lee; Dale Wachtel,Effingham; John O’Neill, Ful-ton; and Nancy Wisted,McLean.

Membership: Josh Curry,Henry, chair; Linda Wikoff,Knox, vice chair; Greg Ander-son, DeWitt; Monica Green,Douglas; Dave Krebel, Mon-roe; Ross Prough, Greene; JimShanklin, Marshall-Putnam;Darrin Storm, Shelby; DavidHeadley, Fulton; and PhillipButler, Warren-Henderson.

Public Relations: MitchHeisler, Henry, chair; KevinMiller, Effingham, vice chair;Joyce Bucklin, Greene; JesseEdlefson, Henry; Mike Hen-nenfent, Knox; Bob Kapraun,Woodford; Kevin Luthy, Ran-dolph; Kimberly Meier,Stephenson; Deborah Moore,Warren-Henderson; DianeMurphy, Montgomery; Ver-non Schiller, McHenry; RobSharkey, Bureau; KarlSpencer, Jasper; Jacob Streit-matter, Peoria; Kevin Urick,Henry; Steve Weber, Henry;Nick Wurl, Effingham; andConnie Schneider, McLean.

Quality of Life: CarrieBoelens, Henry, chair; CarolJerred, Hancock, vice chair;Marion Barr, Hancock; RayDieter, Livingston; Don Du-Vall, White; Elaine Kapraun,Woodford; Julie Kern-Morri-son; Sangamon, Steve Lau-nius, Washington; ChristinaLionts, Sangamon; DavidWessel, Cass-Morgan; Mar-guerite Zahnd, Champaign;Paul Rickey, Warren-Hender-son; and Diane Truckenbrod,LaSalle.

Leaders of the Action Co-ordinating Council are Chair-man Carleen Paul, and ViceChairman, Josh Curry.

from the counties


BUREAU — TheYoung Leader Com-

mittee will meet at 6 p.m.Monday (today) at the FarmBureau office. The meeting isa kickoff to plan for eventsand activities for members 18to 35 years of age. Call theFarm Bureau office for moreinformation.

• The winter Ag in theClassroom educational meet-ing will be at 4 p.m. Wednes-day at the Farm Bureau office.Farm Bureau educationaltools such as ag kits will beexplained. Teachers whoattend will receive continuingeducation credits. Call theFarm Bureau office at 815-875-6468 for reservations ormore information.

GREENE — Applica-tions for the Greene

County Farm Bureau Founda-tion scholarships are availableat the Farm Bureau office,high school agriculturedepartments, and from guid-ance counselors. Call theFarm Bureau office at 942-6958 for more information.

JACKSON — An on-the-road seminar will be

at 6 p.m. Monday at theExtension office, Murphys-boro. Kevin Rund, IllinoisFarm Bureau senior directorof local government, will bethe speaker. Call the FarmBureau office at 618-684-3129by Friday for reservations ormore information.

• Jackson and WilliamsonCounty Farm Bureaus willsponsor a risk managementand farm bill update meetingat 6 p.m. Monday, Feb. 6, at

(today) for reservations ormore information.

PEORIA — A cropinsurance meeting will

be at 9 a.m. Tuesday, Jan. 31, atthe Farm Bureau office. DougYoder, Illinois Farm Bureausenior director of affiliate andrisk management, will reviewcrop insurance options and anew rating methodology thatwill reduce farmer premiums.

ST. CLAIR — The Mon-Clair County Corn

Growers Association annualmeeting will be at 6:30 p.m.Monday, Jan. 30, at Lou andMichelle’s, 405 Front St.,Waterloo. U.S. Rep. JerryCostello (D-Belleville) andGarry Niemeyer, NationalCorn Growers Associationpresident, will be the speakers.Call the Farm Bureau office at233-6800 by Monday (today)for reservations or more infor-mation.

STARK — A market out-look program will be at

6:30 p.m. Thursday, Feb. 16, atthe Black Hawk College EastCampus conference room.Pizza will be served. CoryWinstead, AgriVisor analyst,will be the speaker. Call theFarm Bureau office at 309-

286-7481 for reservations ormore information.

UNION — An on-the-road seminar will be at

7:30 a.m. Tuesday, Jan. 31, atthe Farm Bureau office. Alight breakfast will be served.Kevin Rund, Illinois FarmBureau senior director of localgovernment, will be the speak-er. Call the Farm Bureauoffice at 618-833-2125 by Fri-day for reservations or moreinformation.

• Union and Pulaski-Alexander County FarmBureaus will sponsor a riskmanagement and farm billupdate meeting at 7:30 a.m.Tuesday, Feb. 7, at the Pulaski-Alexander Farm Bureau office,Mounds. A light breakfast willbe served. Call the FarmBureau office for more infor-mation.

“From the counties” items aresubmitted by county Farm Bureaumanagers. If you have an event oractivity open to all members, con-tact your county Farm Bureaumanager.

Southern FS, Marion. DougYoder, Illinois Farm Bureausenior director of affiliate andrisk management, will be thespeaker. A meal will beserved. Call the Farm Bureauoffice for more information.

JERSEY — Applicationsfor the Jersey County

Farm Bureau Foundationscholarships are available atthe Farm Bureau office, highschool agriculture teachers,and from guidance counselors.Call the Farm Bureau office at498-9576 for more informa-tion.

LEE — Country Finan-cial will sponsor a farm

estate and transfer planningseminar at 11 a.m. Friday atthe Farm Bureau office. DanHawkins, an attorney, will bethe speaker. Lunch will beserved. Call your CountryFinancial representative or625-4876 for reservations ormore information.

• Lee and Ogle CountyFarm Bureaus will sponsor amaster grain contract seminarat 7 p.m. Wednesday, Feb. 8, atthe Ogle County Farm Bureauoffice, Oregon. Jerry Quick,former Illinois Farm Bureausenior counsel, will be thespeaker. Call the Farm Bureauoffice at 815-857-3531 or e-mail [email protected] byTuesday, Jan. 31, for reserva-tions or more information.

LIVINGSTON — Theannual meeting will be

at 6:30 p.m. Tuesday at theFarm Bureau office. Call theFarm Bureau office at 815-842-1103 for more informa-tion.

• The Marketing Committeewill sponsor a crop insuranceinformation meeting from 9 to11 a.m. Thursday at the Uni-versity of Illinois Extensionoffice, Pontiac. Doug Yoder,Illinois Farm Bureau seniordirector of affiliate and riskmanagement, will be the speak-er. Call the Farm Bureau officeat 815-842-1103 or [email protected] for reser-vations or more information.

MONROE — View-point meetings will be

held at the following times andlocations: 8 a.m. Friday, Cor-ner Pub, Valmeyer; 6:30 p.m.Thursday, Feb. 2, Bully’s,Columbia. Meals will beserved. Call the Farm Bureauoffice at 939-6197 for reserva-tions or more information.

• The Mon-Clair CountyCorn Growers Associationannual meeting will be at6:30 p.m. Monday, Jan. 30, atLou and Michelle’s, 405Front St., Waterloo. U.S.Rep. Jerry Costello (D-Belleville) and GarryNiemeyer, National CornGrowers Association presi-dent, will be the speakers.Call the Farm Bureau officeat 939-6197 by Monday

profitability


Export inspections(Million bushels)

Week ending Soybeans Wheat Corn01-12-12 40.9 13.4 30.101-05-12 32.7 10.8 34.1Last year 47.0 24.1 23.4Season total 640.0 620.3 612.2Previous season total 891.7 706.0 624.7USDA projected total 1300 925 1600Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.48-$55.00 $42.9840 lbs. $67.33 $67.3350 lbs. no longer reported by USDAReceipts This Week Last Week 129,24 96,725*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $81.08 $81.60 -0.52Live $60.00 $60.38 -0.38

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

Steers 125.69 n/a n/a Heifers 125.67 n/a n/a

USDA five-state area slaughter cattle price

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

This week Prev. week Change $150.39 150.51 -0.12

CME feeder cattle index — 600-800 Lbs.

Lamb prices

Slaughter Prices - Negotiated, Live, wooled and shorn 120-160 lbs. for150-170 $/cwt. (wtd. ave. 160.77); dressed, no sales reported.

(Thursday’s price)

GPS threatened by communication company plansBY SID PARKS

There’s a growing threat toagriculture that could impactus all. It has to do with preci-

sion GPS —an invaluabletechnologyfor modernproduction.Unfortunate-ly, the federalgovernment isconsidering aproposal that

would undermine this impor-tant technology.

The average Americanfarmer feeds roughly 155 peo-ple today, compared to fewerthan 26 when I was born.Increased efficiencies come

from enhanced agronomicpractices, improved inputs(including seed and crop pro-tection products), andadvances in technology.

The right product applied orfield operations performed, atthe right time, in the right loca-tion, is critical to maximizingefficiency and productivity.

Precision agriculture uti-lizes yield monitors, auto-steer-ing systems, variable rate appli-cation technologies, and other“high-tech stuff ” to help serv-ice providers and producers intheir farming operations.What ties it all together isknowing a precise location.That’s where precision GPScomes in.

A company called Light-Squared is attempting to builda new ground-based networkof communication towers aspart of a plan to expandbroadband service nationwide.While a worthy goal, it plans tooperate at a frequency veryclose to that used by GPSsatellites. That’s a problem.

There has been quite adebate in Washington regard-ing the impact on GPS users.Experts have testified at Feder-al Communications Commis-sion hearings, including folkswho designed, built, or use theGPS system, confirming thereis a big problem with theLightSquared plan.

Because these ground-based

towers transmit at a strongerpower than GPS satellites, theirtransmissions interfere withprecision GPS equipment formany miles around each tower.

Can some future technologybe developed that allows bothsystems to co-exist on thesame or nearby radio frequen-cies? Perhaps, although I donot believe it exists today. Anysolution likely will require pre-cision GPS users to add orreplace equipment, and at asignificant cost.

Like most cellular phoneusers, I would be in favor ofimproved coverage, but not ifit means either interferencewith GPS or increased costsfor users. If the government

allows LightSquared to go for-ward, then the governmentshould ensure that all costs ofreplacing or retrofitting GPSdevices is paid for by Light-Squared, not GPS users.

We all appreciate both mod-ern conveniences (like cellphones) and abundant, inex-pensive, and high-quality food.Any attempt at a solution tothe LightSquared interferenceproblem that doesn’t benefit allinvolved isn’t much of a solu-tion and should not be permit-ted to proceed.

Sid Parks is GROWMARK’smanager of precision farming. Hise-mail address is [email protected].

Sid Parks

Analyst: National ag economy bubble may be ready to deflateBY KAY SHIPMANFarmWeek

Market opportunities willexist for farmers and thosewho provide services andproducts to them, but they willneed to focus on managingcapital and risk, a Wall Streetanalyst advised those attendingthe Illinois Fertilizer andChemical Association (IFCA)annual meeting in Peoria lastweek.

Sano Shimoda, presidentand founder of BioSciencesSecurities, projected cornprices potentially could hoverbetween $2.50 and $3 abushel in the next five years

due to over supply.“No one has a lock on the

future. In the next two years,we’ll see if I’m on track,” Shi-moda said with a chuckle.

To bolster his projections,Shimoda listed several factorsthat he said fundamentally ischanging farming.

Volatility of crop prices andhigh input costs, especially forseed and fertilizer, haveincreased the financial risk ofoperating a farm, Shimodasaid. “That’s different from thepast,” he added.

Farmers now needincreased financial expertise tomanage risk and adjust to

volatility, according to Shimo-da. “Look at the complexity ofa farmer’s day-to-day manage-ment decisions,” he said.

The Internet has led toinstantaneous knowledge ofglobal markets. “This meansfarmers have to think differ-ently about how they man-age” their operations, he not-ed.

However, U.S. farmersunderestimate the global sup-ply-side response to highprices, according to Shimoda.

“The understanding of plantgenetics is creating magic,” hesaid.

American farmers need toremember that productiontechnology advances help notonly U.S. farmers, but also

farmers around the world, henoted.

Shimoda’s list of economicindicators included: recordcorn prices, high farmland val-ues, and high profits. “We’re ata peak of extraordinary highvalues,” he noted.

Shimoda advised IFCAmembers and their farmer cus-tomers to focus on precisionagriculture to help optimizeyields, minimize costs, andmaximize profits.

“Farmers need to changehow they look at their busi-ness and manage it,” Shimodasaid. Farmers need “a truecorporate mentality of man-aging finances and marketrisks — and being better pro-ducers.”

‘We’re at a peak of extraordinary highvalues.’

— Sano ShimodaPresident, BioSciences Securities

Cattle market could be due for a pullbackBY DANIEL GRANTFarmWeek

The USDA cattle on feed report released Fri-day was neutral as inventories were very close totrade expectations.

However, the market still could experience anear-term pullback as the industry attempts toget beef supplies in line with demand, accordingto market analyst Troy Vetterkind, owner of Vet-terkind Cattle Brokerage in Chicago.

USDA on Friday estimated the number of cattleand calves onfeed as of Jan. 1totaled 11.86 mil-lion head, up 3percent from thesame time lastyear.

Cattle pricesprior to thereport were athistorically highlevels. The CMEfeeder cattleindex the middleof last week wasabout $150 perhundredweight,17.9 percenthigher than ayear ago, whileApril cattlefutures were near

a new contract high of $128 per hundredweight.“I’m looking for a little pullback the next cou-

ple weeks so (the industry) can get the beef sup-ply in alignment with demand going into spring,”Vetterkind told FarmWeek.

“Packers have been buying cattle dressed at$2 (plus) per pound and selling at $1.80,” he not-ed. “That can’t continue.”

Steer and heifer slaughter last week was downabout 2 percent compared to the same time last year.

And Vetterkind predicted the trend ofreduced slaughter numbers will continue aspackers trim hours due to less beef on the mar-ket and tighter margins.

USDA recently projected U.S. beef produc-tion this year will decrease 4.6 percent comparedto last year.

“Retail (beef) prices likely will stay high (dueto lower supplies),” Vetterkind said.

“The true test of the market will come thisspring,” which typically is the best demand peri-od for beef each year, he continued. “The springmarket will set the tone for the rest of the year.”

Exports could help pick up the slack in thecattle market if domestic demand starts to wane.

USDA recently estimated U.S. beef exportsfor 2011 totaled 2.78 billion pounds, up 21 per-cent from 2010. USDA projected similar exportsales this year.

“Exports have been good,” the analyst said.“My biggest fear is if we see a flip in currenciesand we have all this high-priced beef going intoa poorer exchange rate than last year.”

PROFITABILITY

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

Bloomington, Illinois

AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

AgriVisor LLC is not liable for any damageswhich anyone may sustain by reason of inac-curacy or inadequacy of information providedherein, any error of judgment involving anyprojections, recommendations, or advice orany other act of omission.

CASH STRATEGISTCorn Strategy

ü2011 crop: Corn is show-ing initial signs that the minortrend could be turning higher.Prices need to close above$6.12 on the Chicago Marchcontract to confirm a shift.Use a rally to $6.25 on Marchfutures to make catch-up sales.We are considering adding tosales on a move above $6.35on March futures.

ü2012 crop: Use a rally to$5.65 to make catch-up sales.We may add to sales on amove to $5.75.

vFundamentals: Thechange in South Americanweather is keeping the cornmarket on the defensive. Cur-rent weather models call foradditional rains, but some feelthe damage to the corn cropalready has been done.Export business is showingsigns of picking up followingdismal business this fall/win-ter. Last week’s activityappears even better than theprevious week’s, in which theU.S. sold 759,900 metrictons.

Soybean Strategyü2011 crop: With the mar-

ket in the window for a 16-18week low, we aren’t interestedin making sales at these levels.Better levels should occursometime yet this winter.Still, use a rally above $12.25on Chicago March futures. Weare planning to add to sales ifMarch moves to $12.75.

ü2012 crop: With even amodest reduction in SouthAmerican output, there’s aneed to increase soybean acresand production here this com-ing year. Clearly, soybeanprices need to move up tohelp that happen. We stilldon’t see the ingredients for amajor move higher. Use a ral-ly to $12.20 on Novemberfutures to make catch-up sales.Plan on adding to sales ifNovember moves to $12.50.

vFundamentals: Of thethree grains, soybeans mayhave the long-term fundamen-tal structure that is most in bal-ance. An economic incentiveto plant a lot of acres here thisnext year may be the only thingthat might change that, and sofar that incentive is not there.South American output has

diminished, but if the patternhas shifted, losses may end upbeing only modest this year.

Wheat Strategyü2011 crop: Wheat is try-

ing to put in a short-term lowwith the Chicago March con-tract again clearing $6. Thenext resistance comes at the$6.16-$6.27. Plan on makingcatch-up sales at $6.16. Holdoff on making additional sales,as better pricing opportunitiesshould present themselves lat-er in the winter months. Thecarry in futures still pays forcommercial storage, makingspring hedge-to-arrive con-

tracts the best marketing tool.ü2012 crop: Hold off

making sales, waiting for arebound from this break.

vFundamentals: Theshort-term direction of wheatremains linked to corn. Eventhen, the large supply ofwheat from the Black Searegion is finally getting to amore manageable level. As aresult, U.S. wheat is becomingmore competitive in the worldmarket. Temperaturesdropped in the SouthernPlains to near zero, but thethreat of winterkill remainslow.

Cents per bu.

Wheat supplies still troublesome for corn

Cash Strategist sales recommendationsBeans Corn Wheat

'11 '12 '11 '12 '11 '12

Prices are new cropor nearby futures

7/13/10 10% 6.00

7/21/10 15% 6.60

7/30/10 10% 6.98

8/6/10 15% 7.35

8/8/11 10% 6.68

11/17/11 20% 6.343/49/13/10 10% 4.61


10/11/10 10% 5.28

1/24/11 10% 5.87

4/25/11 10% 6.76

5/31/11 10% 6.79

8/1/11 10% 6.771/2

11/15/11 10% 6.45

11/15/11 10% 5.671/2

9/13/10 10% 10.27

30% unsold


10/11/10 10% 11.54

1/31/11 10% 13.31

4/25/11 10% 13.76

5/26/11 10% 13.75

8/1/11 10% 13.7111/15/11 10% 11.99

11/15/11 10% 11.99

8/29/11 10% 6.65

30% unsold20% unsold

8/29/11 10% 13.50

80%unsold

80% unsold80% unsold

11/17/11 20% 6.30


stocks still rise 10 mmt, boost-ing the stocks/use ratio to 32.5percent. You can see on theaccompanying graphic that isclosing in on the fundamental-ly burdensome structures fromthe middle 1980s and late1990s.

To bring the fundamentalwheat structure back to a “bal-ance,” we need to trim endingstocks 20-25 mmt. Assumingoutput remains close to this685 mmt initial forecast, thatmeans demand needs to rise20-25 mmt (equivalent to 735million to 920 million bushelsof corn).

With food demand alreadyat a very high level, we’d arguethat means feed demand needsto rise that much to trim sup-plies. And even though totalfeed demand for coarse grainsand wheat should grow, thebulk of that would have tocome from wheat replacingeven more coarse grain (mostlycorn) in the feed bunk. And,already, wheat supplies andprices have become a drag oncorn demand.

Clearly the plight of thisyear’s wheat crop is destined toagain have big implications forthe price of corn, good or bad.This fits within the scenario wepresented a couple of weeksago in which we postulatedthat corn prices may have theleast potential to rise and themost potential to go down.

This past week, the Interna-tional Grains Council issued itsfirst 2012 production estimateand the first new-crop produc-tion estimate we have seenfrom anyone. Not surprisingly,it has longer-reaching negativeimplications; not just forwheat, but for corn as well.

The council looks for wheatplantings to rise 1.7 percentthis year, mostly in the U.S.and former Soviet Unioncountries. Based on that, itprojected a 685 million metricton (mmt) world wheat crop,second only to last year’s 691.5mmt crop.

Demand prospects are hardto accurately forecast this farahead with so much time forvariables to change. We used a675 mmt forecast to build asupply/demand table, and thatmay be a number that is on thehigh side. It is comprised of a550 mmt food/seed demand,one that matches this year’srecord high, and only a 5.6mmt reduction in feeddemand. The latter stillexceeds any prior feed demandlevels by a big margin.

With this scenario, ending

pERSpEcTIvES


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LETTERS TO THE EDITORBees, humans are‘mutually dependent’Editor:

I greatly enjoyed the article byTom Turpin in the Jan. 2 issue. Ihad never heard of the traditionof “telling the bees” until now,even though I’ve kept bees forover 40 years and heard of manybee traditions.

I’ve come to realize lately thatthe relationship between beesand humans has changed from a“close association,” as Tom putit, to more of a “mutual depend-ency.”

Insect pollination accounts forabout one-third of the food weconsume, of which honeybeesaccount for about 80 percent ofthat. The value they give in polli-nation has been estimated ataround $20 billion a year here inthe U.S. alone.

The greatest advantage thatbees give us is that they can bemanaged by man and moved towhere they are needed at any giv-en time.

But, unfortunately, the bee-keeping world is currentlyfraught with uncertainty andproblems. Hopefully, Tom (whotold me is also is a beekeeper)will continue to cover this oftenoverlooked or forgotten partnerin agriculture and possibly inspiresome of our young farmers toconsider the keeping of bees aspart of their agricultural pursuits.

We need more beekeepers, andthe bees need our time and con-sideration. Perhaps instead oftelling the bees we should be lis-tening to the bees as they mightjust be trying to tell us some-thing.TERRY R. COMBS,President, St. Clair BeekeepersAssociation,Keyesport

* * * Pipeline delaya major blunderEditor:

President Obama’s decision toreject the Canada-to-Texas Key-stone XL oil pipeline is a majorblunder. The Iranians are threat-ening to close the Strait of Hor-muz through which 20 percent ofthe world’s oil supply passes. Thisalready is raising our fuel prices.

This pipeline allows us asecure supply of oil from friendlyCanada. If Obama continues todelay, the Canadians have saidthey will direct the pipeline to

their west coast and will exportthe oil, much of it going to Chi-na.

We need an ample, affordablesupply of fuel. My fuel expenseshave doubled in the last severalyears.

The Keystone pipeline will notrequire any government fundingand will be a great economic ben-efit to the U.S. At least 20,000good-paying jobs will be directlycreated in America. The pipelinewill carry 500,000 gallons ofcrude oil daily for consumptionin the U.S.

Up to half a million jobs willbe indirectly benefited by thepipeline. About 14 percent ofconstruction workers are nowunemployed — the pipeline willput many to work.

The pipeline is being opposedby misguided environmentalists.It is the safest way to ship oil.Americans have been buildingpipelines safely for 70 years,including here in Madison Coun-ty, where one is located near myfarm.

This Keystone pipeline is sup-ported by virtually all Republi-cans as well as many moderateDemocrats and labor unions. Weshould demand that the Keystonepipeline be started now!

America is one of the veryfew nations to put known domes-tic supplies of oil and gas offlimits to explorations. This ishurting our economy and needsto change. We should supportpoliticians who will give us amore intelligent energy policy.EDWARD RAGSDALE, Alton

* * *

Nobel Prize notNorway productEditor:

In your Jan. 2, 2012, issuethere is an article about the Nor-way’s butter tariff. The writer,Ms. (Carol) Keiser states, “Anation that takes pride in award-ing the Nobel Prize in EconomicSciences each year ... .”

The Nobel Prize in Econom-ics is awarded by the central bankof Sweden and has nothing to dowith Norway.

For further information onNobel Prizes, go to Wikipedia.org and enter “Nobel Prize inEconomics.”DON SCHILLING, associate professor emeritusUniversity of Missouri-Columbia

Honey bees have been “agents of polli-nation” and a source of food in the UnitedStates since the first colonists depositedthem on the East Coast during the early1600s. Few people understand the life cycleand habit of this European insect.

The honey bee colony has only one trulyreproductive female. That female is referredto as the “queen bee.”

At the right age, thequeen leaves the hive fromwhich she originated andmates outside the hive witha drone (male bee). Duringsuch reproductive flights,the female can mate withseveral drones, but once the

period of mating finish-es for the queen, thatqueen is permanentlyfinished with drones.

The drones either die following matingor are deprived of food until they die.Drones are the first to get kicked out of thehive before winter.

The queen stores the resulting sperm andslowly fertilizes eggs, releasing them over aperiod of time. If an egg goes unfertilized,the result is an organism with a single set ofchromosomes and the eventual hatch of amale drone. However, if the egg is fertil-ized, the result is a female.

Young larvae are cared for by the workerbees of the hive. The type of care receivedby a female — specifically the type of foodfed to female larvae — will either makethem queens or one of the subservientworkers.

Royal jelly, a food secreted from theglands of worker bees, is the key to this dif-ference. If a larva is consistently fed royaljelly, then the resulting adult will be a queen.If a larva is eventually fed “bee bread,” amixture of honey and pollen, then theresulting adult will be a worker.

Worker bees are the most familiar type of

bee in the hive because they are the beescommonly observed during evenings inflowers, gardens, and produce fields.

Old queens depart the hive once a newqueen has been established. The old queenflies off to create a new hive, while newlyemerged queens hunt down and kill all pos-sible competing queens in the hive.

New queens orient themselves, engage inmating and the complex reproductiveprocess begins once again. The populationof the average hive may surpass 60,000bees.

The bee hive works together as a unit tosurvive. Workers bring in nectar and waterto sustain the hive and protect it by stingingpotential trespassers.

Protecting the hive is the ultimate act ofunselfishness for the worker because thestinger and venom sack are pulled out oncethe stinger is injected and it eventually killsthe worker.

While everyone worries about beingstung by a honey bee, the bees typically arerather docile and prefer to be left alone.Attacks tend to occur only when the hivehas been disturbed.

Scout bees fly about and find sources offood. They then return to the hive and tellworker bees where the food source is bydancing (wiggling and shaking their bodies).Each intricate part of the dance represents adirection and distance that workers use tolocate the food source.

Honey bees are important pollinatorsand are important from an agronomicstandpoint. Their production of honey isoften overlooked as a component of localfood production. This gives local bee keep-ers an important role in diversifying thefood supply.

Matt Montgomery is a local food systems and smallfarms educator with the University of IllinoisExtension. His e-mail address is [email protected].

BuzzzzzzzzzzzHoney bee agentsof pollen, high drama

MATTMONTGOMERY

farmweek january 23 2012

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