FarmWeek Feb 20 2012

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Periodicals: Time Valued Monday, February 20, 2012 Two sections Volume 40, No. 8 FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau ® on the web: www.ilfb.org A StePHenSon County computer entrepreneur is proving Northwestern Illinois can access high-speed Internet despite thoughts to the contrary . ............. 7 ScHool diStrictS benefit financially from wind farm con- struction even when general state aid decreases, according to a new study out of ISU . .............................6 U.S. Pork ProdUcerS might not be “lovin’ it,” but they are prepared to meet new produc- tion requirements outlined by McDonald’s. ....................................2 Farm bill process under way; insurance net in peril? BY MARTIN ROSS FarmWeek As the Senate essentially rebooted the 2012 farm bill process last week, the White House proposed further spending cuts in crop insurance — according to many lawmak- ers and analysts, a likely linch- pin of future ag policy. Generally, the House initi- ates farm bill development, but the Senate instead launched hearings last Wednesday, focusing on ag energy. The Senate is expected next to conduct hearings on rural development and ag research before addressing commodity programs reportedly in late March; House Ag Committee hearings are anticipated this spring. Meeting with Illinois Farm Bureau Board members, American Farm Bureau Feder- ation (AFBF) Chief Econo- mist Bob Young said final farm bill passage is “possible” by Memorial Day. That view was not shared by all, however: “I don’t know if we can engage in successful farm bill debate this year,” Springfield Democrat U.S. Sen. now “hard to defend” amid high prices. She noted continued skepti- cism about crop insurance among southern growers. Young warned AFBF’s pro- posed “deep loss” revenue pro- tection program represents a major change for program farmers. See Farm bill, page 2 Dick Durbin told the IFB directors. He cited continued political discord leading up to the 2012 elections. USDA Chief of Staff Krysta Harden said the initial Senate hearing generated “good biparti- san dialogue.” USDA’s maintain- ing a largely hands-off approach to the farm bill, she said, noting that “Congress writes the farm bill.” Instead, USDA will play a bipartisan, helpful role by sup- plying committees data and assistance, she said. Young said the farm bill debate is now following its nor- mal course, despite hasty fall discussions that led to an abort- ed deficit “super committee” plan to cut $23 billion in ag funding over 10 years. In Senate Ag Chairman Deb Stabenow’s (D-Mich.) view, “direct payments are gone,” Young said. “Whether that money’s gone or not is another question,” he advised. Program ponderings The key presumption is that some share of direct payment savings would be transferred to countercyclical and/or revenue protection programs. But Hard- en said that while direct pay- ments once served as a cross- commodity “leveler,” they’re U.S. Sen. Dick Durbin, a Springfield Democrat, seated left, discusses 2012 ag priorities with Illinois Farm Bu- reau President Philip Nelson, seated right, and IFB board members visiting Capitol Hill. See other highlights of the board’s trip in accompanying story and inside. (Photo by Martin Ross) Highway bill imminent or at impasse? Is Congress finally on the road to a new, long-term “highway bill”? The answer depends largely on whether you’re asking House or Senate leaders. Meeting last week with participants of a Washington waterways symposium, U.S. House Transportation and Infrastructure Chairman John Mica (R-Fla.) said he was hopeful about quick passage of a multi- modal transportation/ “energy” bill. Mica’s committee has put forward a five- year, $260 billion highway bill aimed at rebuilding the nation’s highways and bridges and, for the first time, addressing selected U.S. waterway concerns that in the past have taken a back seat to surface transportation issues. According to Mica, the proposal is free of so-called spending “earmarks,” instead granting states greater flexibility in using infrastructure funds as they see fit. The plan would attempt to streamline the regulatory process involved in approval of new highway projects. Transportation Water Resources/Environment Subcommittee Chairman Bob Gibbs (R-Ohio) noted high- way projects often take 15 years from incep- tion to construction, and told symposium participants he’d seek similar reforms “on the water side.” Mica noted “we’ve found the money” to fund his bill, via proposed allocation of offshore oil drilling royalties. That plan, which presumes expanded domestic oil exploration, would help supplement the feder- al Highway Trust Fund, a repository for fuel taxes that has seen waning revenues amid increased vehicle fuel efficiency and reduced highway travel. “We’re spending about $50 billion a year more than we take in. We take in about $35 billion (in the trust fund). We’re taking that (extra) money out of the gen- eral Treasury, and 43 cents on the dollar is borrowed,” Mica said. Meeting with Illinois Farm Bureau board members in Washington last week, Spring- field Democrat U.S. Sen. Dick Durbin was not as confident about imminent passage of a highway bill. Senate Environment and Public Works Chairman Barbara Boxer (D- Calif.) and committee ranking Republi- can Sen. James Inhofe (R-Okla.) are pushing a two-year package. The House plan would eliminate any guarantee of a portion of gas tax revenues for mass transit; the Senate bill strongly sup- ports transit funding. The House plan proposed fast- tracking the Canada-U.S. Keystone XL Pipeline and opening Alaska’s Arctic National Wildlife Refuge (ANWR) to oil drilling, despite President Obama’s decision to delay pipeline approval and Democ- rat opposition to ANWR development. ANWR drilling was approved in a separate bill late last week. Durbin warned the House bill would cut 15 to 20 percent of the federal highway mon- ey Illinois now receives; a Durbin aide said the Senate plan assures “a top level of funding.” Because no specific project earmarks are included in the Mica plan, IFB National Legislative Director Adam Nielsen said “a lot’s riding on the (state’s) funding formula.” IFB seeks several ag-related measures in highway legislation, including a continued ag exemption from commercial trucker “hours See Highway, page 4 FarmWeekNow.com View comments by Chairman Mica on transportation issues at FarmWeekNow.com.

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Monday, February 20, 2012 Two sections Volume 40, No. 8

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

A StePHenSon Countycomputer entrepreneur is provingNorthwestern Illinois can accessh i g h - s p e e d I n t e r n e t d e s p i t ethoughts to the contrary. .............7

ScHool diStrictS benefitfinancially from wind farm con-struction even when general stateaid decreases, according to a newstudy out of ISU. .............................6

U.S. Pork ProdUcerSmight not be “lovin’ it,” but theyare prepared to meet new produc-t ion requirements outl ined byMcDonald’s. ....................................2

Farm bill process under way; insurance net in peril?BY MARTIN ROSSFarmWeek

As the Senate essentiallyrebooted the 2012 farm billprocess last week, the WhiteHouse proposed furtherspending cuts in crop insurance— according to many lawmak-ers and analysts, a likely linch-pin of future ag policy.

Generally, the House initi-ates farm bill development, butthe Senate instead launchedhearings last Wednesday,focusing on ag energy.

The Senate is expected nextto conduct hearings on ruraldevelopment and ag researchbefore addressing commodityprograms reportedly in lateMarch; House Ag Committeehearings are anticipated thisspring.

Meeting with Illinois FarmBureau Board members,American Farm Bureau Feder-ation (AFBF) Chief Econo-mist Bob Young said finalfarm bill passage is “possible”by Memorial Day.

That view was not shared byall, however: “I don’t know ifwe can engage in successfulfarm bill debate this year,”Springfield Democrat U.S. Sen.

now “hard to defend” amidhigh prices.

She noted continued skepti-cism about crop insuranceamong southern growers.

Young warned AFBF’s pro-

posed “deep loss” revenue pro-tection program represents amajor change for programfarmers.

See Farm bill, page 2

Dick Durbin told the IFBdirectors. He cited continuedpolitical discord leading up tothe 2012 elections.

USDA Chief of Staff KrystaHarden said the initial Senatehearing generated “good biparti-san dialogue.” USDA’s maintain-ing a largely hands-off approachto the farm bill, she said, notingthat “Congress writes the farmbill.” Instead, USDA will play abipartisan, helpful role by sup-plying committees data andassistance, she said.

Young said the farm billdebate is now following its nor-mal course, despite hasty falldiscussions that led to an abort-ed deficit “super committee”plan to cut $23 billion in agfunding over 10 years.

In Senate Ag Chairman DebStabenow’s (D-Mich.) view,“direct payments are gone,”Young said. “Whether thatmoney’s gone or not is anotherquestion,” he advised.Program ponderings

The key presumption is thatsome share of direct payment

savings would be transferred tocountercyclical and/or revenueprotection programs. But Hard-en said that while direct pay-ments once served as a cross-commodity “leveler,” they’re

U.S. Sen. Dick Durbin, a Springfield Democrat, seated left, discusses 2012 ag priorities with Illinois Farm Bu-reau President Philip Nelson, seated right, and IFB board members visiting Capitol Hill. See other highlightsof the board’s trip in accompanying story and inside. (Photo by Martin Ross)

Highway bill imminent or at impasse?Is Congress finally on the road to a new,

long-term “highway bill”? The answerdepends largely on whether you’re askingHouse or Senate leaders.

Meeting last week with participants ofa Washington waterways symposium, U.S.House Transportation and InfrastructureChairman John Mica (R-Fla.) said he washopeful about quick passage of a multi-modal transportation/ “energy” bill.

Mica’s committee has put forward a five-year, $260 billion highway bill aimed atrebuilding the nation’s highways and bridgesand, for the first time, addressing selected U.S.waterway concerns that in the past have takena back seat to surface transportation issues.

According to Mica, the proposal is free ofso-called spending “earmarks,” insteadgranting states greater flexibility in usinginfrastructure funds as they see fit.

The plan would attempt to streamline theregulatory process involved in approval ofnew highway projects. Transportation WaterResources/Environment SubcommitteeChairman Bob Gibbs (R-Ohio) noted high-way projects often take 15 years from incep-tion to construction, and told symposiumparticipants he’d seek similar reforms “on

the water side.” Mica noted “we’ve found the money”

to fund his bill, via proposed allocation ofoffshore oil drilling royalties. That plan,which presumes expanded domestic oilexploration, would helpsupplement the feder-al Highway TrustFund, a repositoryfor fuel taxes that hasseen waning revenuesamid increased vehiclefuel efficiency and reduced highway travel.

“We’re spending about $50 billion ayear more than we take in. We take inabout $35 billion (in the trust fund). We’retaking that (extra) money out of the gen-eral Treasury, and 43 cents on the dollar isborrowed,” Mica said.

Meeting with Illinois Farm Bureau boardmembers in Washington last week, Spring-field Democrat U.S. Sen. Dick Durbin wasnot as confident about imminent passage ofa highway bill.

Senate Environment and PublicWorks Chairman Barbara Boxer (D-Calif.) and committee ranking Republi-can Sen. James Inhofe (R-Okla.) are

pushing a two-year package.The House plan would eliminate any

guarantee of a portion of gas tax revenuesfor mass transit; the Senate bill strongly sup-ports transit funding.

The House plan proposed fast-tracking the Canada-U.S. KeystoneXL Pipeline and opening Alaska’sArctic National Wildlife Refuge(ANWR) to oil drilling, despitePresident Obama’s decision to

delay pipeline approval and Democ-rat opposition to ANWR development.ANWR drilling was approved in a separatebill late last week.

Durbin warned the House bill would cut15 to 20 percent of the federal highway mon-ey Illinois now receives; a Durbin aide said theSenate plan assures “a top level of funding.”

Because no specific project earmarks areincluded in the Mica plan, IFB NationalLegislative Director Adam Nielsen said “alot’s riding on the (state’s) funding formula.”

IFB seeks several ag-related measures inhighway legislation, including a continued agexemption from commercial trucker “hours

See Highway, page 4

FarmWeekNow.comView comments by ChairmanMica on transportation issuesat FarmWeekNow.com.

Page 2: FarmWeek Feb 20 2012

FCC BLOCKS LIGHTSQUARED NETWORK— The Federal Communications Commission (FCC)last week announced its would block planned develop-ment of a nationwide wireless network by Light-Squared. The FCC pointed out concerns that the pro-posed network could not co-exist with global position-ing systems (GPS).

The American Soybean Association (ASA) applaud-ed the decision and said it would be a relief to farmerswho rely on GPS technology.

“Farmers invest thousands of dollars in high-preci-sion GPS equipment and applications to run more effi-cient, sustainable, cost-effective, and productivefarms,” said Nebraska farmer Steve Wellman, ASApresident.

“The LightSquared network would have renderedthat investment ... all but useless,” he said.

ENERGY BILL HAILED — Passage by theHouse Thursday of a bill to increase domestic energysupplies, including development of a vast new sourcein the oil shale deposits in the American West, helpsprovide the type of energy solutions America needs,according to the American Farm Bureau Federation(AFBF).

In a letter to the House, AFBF President Bob Stall-man explained that increasing U.S. energy security is animportant issue for America’s farmers and ranchers.

“Farm Bureau believes finding comprehensive ener-gy solutions can only strengthen American securitywhile helping agriculture’s long-term economichealth,” he said.

The bill would end bureaucratic delays facing devel-opment of oil shale resources and direct the InteriorDepartment to move ahead with a leasing program.

It also allows for the development and recovery ofnew energy resources in the Outer Continental Shelf,and will open less than 3 percent of the Arctic Nation-al Wildlife Refuge to responsible energy development,Stallman said.

SCHOOLS TO RECEIVE CAPITAL FUNDS— School districts statewide are to receive more than$623 million in capital funds for repairs, updates, andnew buildings, Gov. Pat Quinn announced last week.

Thirty-one districts around the state were approvedfor funding this fiscal year after their projects were cer-tified by the Illinois State Board of Education and theIllinois Capital Development Board.

Quinn also announced the state is making available$50 million in school maintenance grants. The dollar-for-dollar state matching grant program provides up to$50,000 in matching funds for building maintenance orupkeep.

FarmWeek Page 2 Monday, February 20, 2012

(ISSN0197-6680)

Vol. 40 No. 8 February 20, 2012

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Quick takeslivestock

Continued from page 1AFBF still is awaiting an official Congressional

Budget Office (CBO) “score” of the program’sprojected cost, but Young advised the disaster-type revenue program “is not a program that’sgoing to write you a check every year.”

Durbin said he currently supports a “shallowloss” revenue plan that basically attempts toimprove on the existing Average Crop RevenueElection program and, in his view, provide “rea-sonable protection” against production/priceshortfalls.

Meanwhile, the administration spurred AgCommittee ire by proposing what Young deemedsubstantial cuts in crop insurance in its fiscal 2013budget — a reported $8 billion over 10 years. Insurance insecurities?

USDA’s Risk Management Agency (RMA)Deputy Administrator Michael Alston noted con-cerns that a reduction in federal crop premiumsubsidies could spur growers to reduce coveragelevels “so their premiums essentially stay thesame.”

He cited current average 80 percent coverage

levels for major crops, and given 2011’s Midwestflooding, Southwest drought, and HurricaneIrene damage, “I can’t imagine not having thatsafety net,” Alston said.

IFB directors noted strong bipartisan supportfor the insurance program — “I know the impor-tance of crop insurance,” said Chicago DemocratRep. Jesse Jackson Jr., whose reconfigured districtnow dips into Kankakee County.

Alston said he acknowledged concerns about arumored bid to shift crop insurance delivery toUSDA’s Farm Service Agency (FSA) with elimina-tion of FSA-administered direct payments. Infor-ma Economics estimates such a move couldachieve $2.7 billion in savings over a 10-year peri-od.

But Alston argued private insurers under RMAoverview represent “the most efficient, mosteffective way to deliver the program.”House/Senate ag staffers indicated insurance cutsand any proposed agency shift would be dead-on-arrival.

“You don’t fix things that aren’t broken, notwith all the things that are broken,” Harden said.

Pork industry gets preparedto meet McDonald’s demandsBY DANIEL GRANTFarmWeek

U.S. pork producers might not be “lovin’ it,”but they are prepared to meet new productionrequirements outlined last week by fast-foodgiant McDonald’s.

McDonald’s, based in Oak Brook, plans tophase out the use of sow gestation stalls usedby pork producers in its supply chain.

Producers in its system have until May todevelop plans to phase out gestation stalls,McDonald’s announced lastweek. The fast-food giant pur-chases about 1 percent of all porkproduced in the U.S. each year.

“McDonald’s believes gesta-tion stalls are not a sustainableproduction system for thefuture,” said Dan Gorsky, seniorvice president of McDonald’sNorth America Supply ChainManagement. “There are alter-natives we think are better forthe welfare of sows.”

Gestation stalls are individualenclosures (usually about 2 feet by 7 feet in size)used to house sows during the breeding andgestation phases of their reproductive cycles.

The stalls are used to remove the socialstress (and injuries from fighting) of group-housed sows. Another key benefit is the stallsallow farmers to manage sows as individuals(thin sows can be given more feed without hav-ing to compete with a larger, boss sow, andheavy sows can be fed less to maintain body

condition), according to authors of the CMEGroup’s Daily Livestock Report.

The American Veterinary Medical Associa-tion previously determined both individual sowhousing and group housing systems can providefor the well-being of sows.

The McDonald’s requirements essentially willforce pork producers in its supply chain to usesome form of a group housing system.

“We recognize several different types ofhousing are good for raising sows and pigs,”

said Dereke Dunkirk, presidentof the Illinois Pork ProducersAssociation and a farmer fromMorrisonville. “But as an indus-try, we always react to consumerdemands and can modify ourpractices based on thosedemands.”

Pork producers in the pasthave responded to numerousconsumer demands, includingadopting genetics that produceleaner meat.

A USDA study released in2006 found six common cuts of pork wereleaner at that time than they were in 1990, with16 percent less total fat and 27 percent less sat-urated fat.

“We view (the new production guidelines setforth by McDonald’s) as another way to workwith consumers,” Dunkirk said.

Smithfield Farms and Cargill already havestarted reducing the use of stalls by pork pro-ducers in their operations.

Lt. Gov. Sheila Simon has planned the first ina series of rural listening sessions for March 6in the Four Points by Sheraton Hotel and Con-ference Center, Peoria. The event will be inSalon D from 4 to 6 p.m.

Space is limited and reservations are requiredby March 2.

Simon chairs the Governor’s Rural AffairsCouncil and is hosting the session in partner-ship with the Illinois Institute for Rural Affairsat Western Illinois University.

The sessions will provide an opportunity for

rural elected officials, policymakers, and localleaders to share their insights on rural issueswith Simon and the Governor’s Rural AffairsCouncil.

Information gathered will form the basis fora strategic agenda for rural Illinois. This willinclude specific policy recommendations andaction items for the Rural Affairs Council andits member agencies.

For information, contact Christina Rogers,Simon’s policy adviser for rural affairs, at 217-558-3727 or by e-mail at [email protected].

Simon sets first rural listening session March 6

‘There are alter-natives we thinka r e b e t t e r f o rt he we l fa r e o fsows.’

— Dan GorskyMcDonald’s

Farm bill

Page 3: FarmWeek Feb 20 2012

GOVERNMENT

FarmWeek Page 3 Monday, February 20, 2012

Safety focal point of Farm Bureau legislative prioritiesBY KAY SHIPMANFarmWeek

Statewide commercialwind development standardsto protect public health andsafety and higher fines toprevent improper uses ofslow-moving-vehicle (SMV)emblems are among the2012 state legislative priori-ties for Illinois FarmBureau.

However, given the state’sdire fiscal situation, lawmak-ers likely will emphasize

state appropriations, accord-ing to Kevin Semlow, IFBdirector of state legislation.

“The main focus will bethe budget,” Semlow said.“The question is with thenew districts and everyonerunning for election — willthey focus on the election orlegislation?

“If history of past redis-tricting election years is anyindication, there will not bemuch fervor for passingbills,” Semlow added.

The year following redis-tricting, all state legislativeseats are up for election.

Public safety is at theheart of SB 3271, sponsoredby Sen. Michael Frerichs (D-Champaign). The bill seeksto establish statewide stan-dards for commercial windenergy projects.

Those standards alsowould provide adequate pro-tection for private propertyrights and allow for reason-able development of com-

mercial wind energy pro-jects. Farm Bureau delegatesapproved similar policy atthe IFB annual meeting inDecember.

“I’m supportive ofthe wind industry andthink statewide stan-dards will helpwith growth,”Frerichs said.

“Decom-missioning ismy great-est con-cern,”the sena-toradded.

“Whenthey aredecom-missioned, I want to ensurethere is money to take themdown rather than leave themas an eyesore in the farmingcommunity.”

Improper use of slow-moving-vehicle (SMV)emblems would become amore expensive violationunder HB 4598, sponsoredby Rep. Pat Verschoore (D-Milan).

“There are people usingthese signs to mark gateposts or fence posts. Thatwas not what they weredesigned for,” Verschooresaid.

Currently, SMV emblems

are intended to be used toidentify farm tractors and

equipment, horse-drawnvehicles, and specialmobile equipment.

If an SMV emblemis used for any other

purpose in a roadright-of-way, it is

considered apetty offenseand the fineis $25 for a

firstoffense

and $75for a sec-ondoffense

within ayear ofthe first

offense.Verschoore’s proposal

would increase the fine of afirst offense to $75 andexpand the definition ofillegal use beyond a roadright-of-way.

Raising the fine will deterillegal uses, according to Ver-schoore. “Once you showthem you mean business,things generally will be workedout.”

Other legislative prioritiesinclude SB 3356, sponsored bySen. Kwame Raoul (D-Chica-go), which would unsever min-eral rights not being used tothe surface landowner.

Quinn taps former state lawmaker as ag director

Agricultural exports andeconomic growth were majortopics last week at Bob Flider’sfirst meeting as the state agri-

culture direc-tor nominee.

“So muchof what we(Illinois) dohas to bedone withagriculture inthe lead,”Flider toldFarmWeek

while attending an exporttransportation summit in Uni-versity Park.

Flider, a former state law-maker from Mt. Zion, wasnamed ag director by Gov. PatQuinn. His appointment re-quires Senate confirmation.

“Throughout his career,Bob Flider was a tireless, ef-fective leader for rural farmingcommunities and globalagribusiness leaders,” Quinnsaid.

Since March 2011, Fliderhas served as the director ofbroadband impact for thePartnership for a ConnectedIllinois.

“Bob Flider worked well inthe agricultural arena when heserved in the General Assem-bly and on the House Agricul-

ture Committee,” said IllinoisFarm Bureau President PhilipNelson.

“Bob’s door was alwaysopen, and we look forward toworking with him in his newrole as director of the Depart-ment of Agriculture.”

Flider said he hopes towork with Farm Bureau andother farm organizations tobuild partnerships.

Some ag sectors, such asthe livestock industry, arefacing challenges, and Flidersaid he had heard concerns

from that industry. “My approach is I want to

look at it ... and work towardcommon sense solutions,”he said. “One of the thingsthat is evident is that grainproduction and the livestockindustry are interdepen-dent.”

One of Flider’s interests ispreservation of family farmsand “ensuring that opportuni-ty for young people,” he said,adding that his daughter ismarried to a Shelby Countyfarmer.

“I understand the chal-lenges facing farmers,” Flidersaid. In the General Assem-bly, he represented a strongagricultural area with majoragribusinesses.

Flider served in the IllinoisHouse from 2003 through2011.

He served on several com-mittees, including the Agricul-ture and Conservation Com-mittee and the Energy and En-vironment Committee. Fliderand his wife, Jean, live in Mt.Zion. — Kay Shipman

FarmWeekNow.com

View a video interview with Illi-nois ag director nominee BobFlider at FarmWeekNow.com.

Bob Flider

Treasurer tweaks link-deposit programIllinois Treasurer Dan

Rutherford has made new ad-justments to make the state’sag link-deposit program moreuseful to borrowers andlenders.

“We’ve lowered interestrates considerably,” RebeccaHuston, manager of the trea-surer’s Invest in Illinois pro-gram, told FarmWeek.

Through the link-depositprogram, the state does notloan money to farmers but de-posits state funds in partici-pating financial institutionsthat determine farmers’ creditworthiness and make theloans.

Ag Invest offers one-yearloans for annual operating ex-penses and long-term loansfor major capital expenses,such as equipment and build-ing construction. The rates areset each month.

Huston illustrated her point

with examples of one-yearand long-term loans complet-ed this month.

The maximum interest ratewould be 3.71 percent for anannual operating line of cred-it.

The maximum interest ratefor a long-term capital expen-diture would be 4.06 percentfor two-years.

In addition, the annual loanlimits have been raised for in-dividual farmer borrowers andfor farm operations. An indi-vidual farmer may borrow upto $300,000, higher than theprevious limit of $120,000. Afarm operation may borrowup to $600,000, up from the

FarmWeekNow.com

To learn more about the IllinoisAg Invest farmer loan program,go to FarmWeekNow.com.

Appointment facesSenate confirmation

previous limit of $240,000.

The long-term program al-lows a farmer to borrow up to$200,000 per year for con-struction, equipment, and oth-er capital expenses.

In a letter announcing thechanges, Rutherford acknowl-edged he lifted his moratoriumon the state link-deposit pro-grams after reviewing and re-vising each program.

“Drawing on the experiencegarnered over the past severalmonths, I have now institutedsome additional enhancementsto further improve the pro-grams and their usefulness,”Rutherford wrote.

Huston advised interestedfarmers to contact the treasur-er’s office at 217-557-6436 fora list of participating lenders.Farmers also may contacttheir local financial institu-tions, she said. — Kay Ship-man

Page 4: FarmWeek Feb 20 2012

transportation

FarmWeek Page 4 Monday, February 20, 2012

Transportation chairman committed to water billBY MARTIN ROSSFarmWeek

U.S. House Transportationand Infrastructure ChairmanJohn Mica (R-Fla.) last weekpledged to seek a congres-sional makeover for thenation’s sagging waterwayssystem that river users havevolunteered to help finance.

Arguing “our maritime‘highways’ need to be devel-oped,” Mica promised mem-bers of the Waterways Coun-cil Inc. (WCI) he would pushfor a new Water ResourcesDevelopment Act (WRDA)following passage of highwaylegislation.

To date, Congress hasfailed to fund construction ofnew Upper Mississippi/Illi-nois River locks authorizedunder the 2007 WRDA bill. Akey challenge in securing fed-eral funding lies in waningreserves in the Inland Water-ways Trust Fund, a pool ofprivate matching funds fed bybarge fuel taxes.

An industry capitol devel-

opment plan has offered toboost taxes while proposingreforms aimed at greater fed-eral efficiency in lock mainte-nance and planning (seeaccompanying story). IllinoisFarm Bureau board memberslast week lobbied for Rep. EdWhitfield’s (R-Ky.) proposal toenact the plan.

“We haven’t done a WRDAbill in six or seven years,” Micatold shippers at a D.C. water-ways symposium. “We can dothis working together. We mustdo this working together.”

River improvements can“save energy” and reduce wearand tear on highways, he said.Mica said investment in locksis preferable to the cost ofrepairing “little stretches ofhighway through urban Ameri-ca.”

Lawmakers meeting withIFB directors appearedbroadly supportive of thatinvestment — House Energyand Commerce Committeemember John Shimkus, aCollinsville Republican,

warned “there will be a disas-ter” resulting from deteriora-tion of 80-year-old locksreliant on “baling wire anddust tape.”

Chicago Democrat Rep.Jesse Jackson Jr. told directorslock upgrades are needed.

Beyond industry needs,WCI Chairman MattWoodruff views the capitaldevelopment plan as a poten-tial cost-saver for taxpayersand the economy.

“We need to start at thevery beginning, in terms ofbetter planning for these proj-ects, better cost estimation,having a far better idea whatit’s really going to cost beforewe ask Congress to authorizeit, before we ask the industryto fund half of it,” Woodrufftold FarmWeek.

A new WRDA measurefaces two major challenges inthe House — an aversionamong many members toincreased taxes and specificproject “earmarks” in individ-ual districts.

Peoria Republican U.S. Aaron Schock, standing, discusses the Washing-ton policy scene with Illinois Farm Bureau board members and PresidentPhilip Nelson, right. Schock has been a major advocate for new, long-term surface transportation legislation. (Photo by Martin Ross)

Midwest lock failurespose far-reaching ripples

The economic ripples of Midwest lock failures would be feltwell beyond the Heartland, accord to Soy Transportation Coali-tion (STC) Executive Director Mike Steenhoek.

The river navigation network is “a system the whole countryreally relies upon,” he said. That reliance should only grow asthe potential of the newly expanded Panama Canal comes tofruition, he told FarmWeek prior to an inland waterways sym-posium last week in Washing-ton.

STC has attempted to docu-ment the Mississippi River’sreach through a soy checkoff-funded Texas TransportationInstitute study indicating keyimpacts for more than just cornand soybean producers. Thestudy, aimed at Washington law-makers, considered the broadimplications of “catastrophic”failures at Mississippi systemlocks.

In Steenhoek’s view, “it’snot a matter of if this ever happens — it’s a matter of when ithappens,” given the condition of outdated Midwest locks.

“The study examined what the impact would be not only forproducer income but also on the ultimate cost for our cus-tomers, domestically,” he noted. “If you have a failure at anynumber of these locks, you’d see some of the livestock opera-tions in the southeast and the southwest parts of the UnitedStates be adversely impacted.

“These areas are far removed from our inland waterway sys-tem. The stakeholder group is larger than many people realize,and this study provides an opportunity to convey that messageto policymakers who represent those districts.”

Further, expansion of the Panama Canal (slated for comple-tion by 2014) will provide Gulf access for massive “Panamax”vessels with far greater commodity loading capacity. By someestimates, those vessels could accommodate an added 13,000metric tons or 700,000 bushels of soybeans.

The recent checkoff-funded report concluded that wouldgenerate an increased “draw” of export grain from points far-ther removed from river terminals.

The study suggested the soybean draw area could expandfrom 70 miles of major river ports to at least 160 miles, andNational Corn Growers Association policy specialist ElizabethJones agrees the canal’s expansion has “re-emphasized just howimportant our lock and river system is” to corn export markets.

That likely would result in more competitive rail freight ratesthroughout the Corn Belt, as well, Steenhoek said. But all thatwill happen only if Mississippi system locks can accommodategreater volumes.

“Updating those locks and making them current for largerbarge (tows) only becomes more and more important,” Jonestold FarmWeek. — Martin Ross

‘It’s not a mattero f i f t h i s ev e rhappens — it’s amatter of when ithappens.’

— Mike SteenhoekSoy Transportation Coalition

Olmsted overrun threat to river projects?News of staggering cost

overruns associated with and apotential 10-year delay in com-pleting a key Southern Illinoislock project comes at a “reallyunfortunate” time, as ag ship-pers seek new federal invest-ment in Midwest waterways.

So said Soy TransportationCoalition Executive DirectorMike Steenhoek in the wake ofthe revelation that the OlmstedLock and Dam project on theOhio River to date has runnearly 400 percent over budget.

The president’s fiscal 2013budget reveals project cost hasreached $2.9 billion and indicat-ed the project may not be com-pleted for another 10 years.

While that news is disturb-ing, Steenhoek hopes Congress’main takeaway will be a realiza-tion of the need to reform howlocks are funded, built, andmaintained in the future.

The Olmsted project,designed to replace outdatedOhio River locks 52 and 53,

was authorized in 1988 at a costof $775 million, with a project-ed seven-year constructionperiod. Since then, it has seenmultiple cost over-runs, and bylast year, Olmsted’s price taghad risen to $2.2 billion.

Illinois Corn Growers Asso-ciation immediate past presi-dent Jim Reed raised concernsOlmsted “might not even becomplete before the locks anddams it was meant to replacedo indeed fail.” Reed called theproject “a poster-child ofbureaucratic ineptitude.”

What originally was seen asthe first in a line of expectedwaterways improvements “nowanchors the system completelyidle,” he warned.

He fears project controversywill interfere with adoption ofimproved post-Olmsted lockconstruction strategies,improvements in other areas,and construction of newUpper Mississippi-Illinois Riverlocks.

Continued from page 1of service” requirements and a clarification of interstate vs.intrastate travel that IFB President Philip Nelson said would freefarmers delivering goods to in-state markets from requirementsimposed on “coast-to-coast truckers.”

Durbin suggested the highway bill “might not be the rightapproach” to ensure ag protections, given political uncertainty aboutpassage and the proliferation of proposed highway amendments“that have nothing to do with highways.”

While the House Rules Committee last week put a hold on Mica’splan, he believes a political accommodation can be reached inHouse-Senate conference. “We will work with (Boxer),” he pledged.“. . .I think she’s just as committed as I am to get this done for thecountry.” — Martin Ross

“For a lot of members ofCongress, this is not going toinspire them to devote anyadditional money to our inlandwaterways system,” Steenhoektold FarmWeek.

“But this does provide anopportunity to encouragemembers of Congress to revis-it how we finance our system.We have a very inefficient, adhoc, piecemeal approach toallocating money to our lockand dam system.

“It’s one of the reasons wehave these major overruns.How money’s allocated is justas important as how muchmoney is allocated.”

Olmsted itself is strategical-ly “critical” to Midwest ship-ping, he argued. Because it islocated at the confluence ofthe Ohio and the Mississippi, ashutdown at the site wouldaffect eastern Corn Belt ship-ments into the Gulf channeland the flow of coal, petrole-um, and ag inputs into theregion.

Waterways Council Inc.(WCI) CEO Mike Toohey esti-mates Olmsted delays will cost$700 million per year in nation-wide benefits, beyond placing“a risky 10-year bet in relyingon the Roaring ’20s-era facili-ties at locks 52 and 53.”

Steenhoek noted successfulnavigational improvements in anumber of countries. Panamais moving toward completionof “six Olmsted-sized majorlock expansions” in 2014,“below budget and ahead ofschedule,” Toohey emphasized.— Martin Ross

Highway

Page 5: FarmWeek Feb 20 2012

REsOuRcEs

Page 5 Monday, February 20, 2012 FarmWeek

Feb. 21 Nutrient management workshop by Lake Vermilion WaterQuality Coalition, 8 a.m. to noon, Rossville Fire Departmentfacility. Call 217-442-8511, extension 3.On-the-Road seminar, 9:30 a.m. Warren-Henderson FarmBureau building, Monmouth. On-the-Road seminar, 6 p.m. Knox County Agri Center,Galesburg.

Feb. 21-22 University of Illinois crop management conference,Kishwaukee College Conference Center, Malta.

Feb. 24On-the-Road seminar, 1 p.m. John Wood Community CollegeAg Center, Perry.

Feb. 27On-the-Road seminar, 7:30 p.m. Effingham County FarmBureau, Effingham.

Feb. 28On-the-Road seminar, 9 a.m. Fayette County Farm Bureau,Vandalia.

DATEBOOK

The 2012 Tri-State Forest Stewardship Con-ference will be March 10 at the SinsinawaMound Center, Sinsinawa, Wis., near Dubuque,Iowa. March 1 is the deadline to mail advanceregistrations, which are required.

The conference draws more than 550 wood-land landowners from Illinois, Iowa, Minneso-ta, and Wisconsin.

According to Jay Hayek, University of Illi-nois Extension forester, more than 25 presen-tations will cover a wide range of forestry andwildlife topics. Those include timber market-ing in today’s economy, woodland prescribedfire, forestry herbicides, timber harvesting, safehandling and processing of wild game, com-mon tree diseases and pests and how to treatthem, maple syrup production for the begin-

ner, and crop tree release techniques to maxi-mize tree growth.

A list of topics and registration materialsare posted online at{www.forestry.iastate.edu}.

Participants will have an opportunity to talkwith state and federal forest managers and seethe most recent advances in forestry technology.

Due to limited space, woodland owners areencouraged to register early and take advantageof the early registration discount. The registra-tion fee is $50 per and includes a continentalbreakfast, lunch, refreshments, resource pack-et, and handouts.

For more information, contact Hayek at217-244-0534 or send an e-mail to [email protected].

Tri-state forest stewardship conference March 10

Big corn crop could pressure spring fertilizer supplyBY DANIEL GRANTFarmWeek

If U.S. farmers boost cornplantings this spring — someprivate forecasters have pre-dicted cornplantings couldtotal 95 millionacres — springfertilizer sup-plies and pricescould be pres-sured.

Farmers,therefore,should consid-er locking in some of their fer-tilizer needs as soon as theydetermine their spring plantingmix, according to Joe Dillier,director of plant food forGROWMARK.

“We have the potential for atremendous call on suppliesthis spring,” Dillier toldFarmWeek. “If that’s the case,we could have (supply) tight-ness.

“If you know what you’regoing to plant,” he continued,“I’d be getting the fertilizerlined up.”

Farmers last fall applied his-torically high levels of anhy-

drous ammonia, phosphorus(P), and potassium (K).

But it likely won’t beenough to offset fertilizerdemand this spring, particular-

ly if the spring weather is con-ducive to planting corn.

“We had a very strong fallon P and K and anhydrous,”Dillier said. “But we had a sim-ilar big fall in 2010 (withrecord fertilizer applications atsome locations) and we stillneeded all the supply we couldget in the spring of 2011.”

Fertilizer prices — whichearlier this month in the statehovered between $800 to $855per ton for anhydrous, $620 to$700 for diammonium phos-phate, $508 to $580 for urea,and $580 to $670 for potash,according to the Illinois

Department of Agriculture —have come down from peakprices last fall.

But farmers, retailers, andwholesalers have held off from

making purchases so far thiswinter in what could amountto a game of chicken as farm-ers wait for price breaks andretailers wait for orders beforelocking in fertilizer supplies.

“A big factor in the marketis a lack of buying activity,”Dillier said. “The danger is,because of a lack of buyingactivity, there’s a possibility

(the industry)hasn’t posi-tioned enoughfertilizer forthe spring.”

Pricespossibly couldcontinue totrend down,but they just aseasily could

jump $100 per ton this spring,Dillier noted.

“There is so much uncer-tainty and volatility out thereyou almost question whetherit’s a replay of 2008,” he said.

“Everybody in the supplychain is having a hard time get-ting a bead on what finaldemand is going to be.”

So why don’t retailers sim-ply stock up on fertilizer incase there is strong demandthis spring?

There is no futures marketin the fertilizer industry to off-set risk, so the only way retail-ers can cover buying risk to tolock in farmer sales.

That’s why a wait-and-seeattitude by farmers could be abig gamble this spring.

“If a wait-and-see approachis your Plan A (to determinefertilizer purchases), then bythe time you see what happens,Plan B probably won’t be avail-able,” Dillier added.

‘We have the potential for a tremendous call on (fer-tilizer) supplies this spring.’

— Joe DillierGROWMARK director of plant food

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(309) 837-7711 www.agleadership.org

Page 6: FarmWeek Feb 20 2012

wind energy

FarmWeek Page 6 Monday, February 20, 2012

Voters should preparefor primary election vote

Illinois voters have home-work to do before castingtheir votes in the March 20primary election.

“Some election outcomesturn on one vote,” said Illi-nois Farm Bureau DirectorChuck Cawley, chairman ofthe board’s Illinois Govern-ment Committee.

In Illinois primary elec-tions, voters must declare apolitical party, and thatmeans they can only vote forraces within that party, saidWilliam “Bill” Blessman,Mason County clerk andrecorder.

“They can only select oneparty. They can’t cross over(party lines). They shouldlook over the ballot anddecide which race they wantto vote in,” Blessman said.

A voter may be interestedin the race for the Republi-can presidential nominee andalso a hotly contested raceamong Democrat candidatesfor a county board seat. But,by law, an individual can’tvote in both of those races.

“It’s always a quandary forpeople, determining a party,”Blessman said. He pointedout Illinois does not registervoters by party so votersmay choose a different partyin the next primary.

If voters do not want todeclare a party, they mayrequest a non-partisan bal-lot, which would allowthem to vote on such issuesas school bond referen-dums.

Changes that result fromthe redrawn legislative dis-tricts will vary across thestate and depend on where

voters live, according toBlessman.

Some voters mayencounter no changes, whileothers may be assigned a dif-ferent polling place or a dif-ferent legislative district.

“They may see differentcandidates on the ballot orthey might be the same candi-dates but running in differentnumber (districts),” Blessman

said. “The county board dis-tricts may have changed ormay have different numbers.”

Voters may have receivedinformation explaining thechanges in the mail, headded. In most counties, elec-tion information will be avail-able online.

Blessman recommendedvoters access their respectivecounty’s website or go to{www.elections.state.il.us} tofind information on the Illi-nois State Board of Electionswebsite.

Farm Bureau membersalso will find informationon the IFB website{www.ilfb.org}. Look onthe right side under the“Quick Picks” icon andclick on “Election Informa-tion.”

Voters also may call or vis-it their local election authori-ties with any questions, espe-cially those who don’t haveor don’t use the Internet,Blessman said. “We’re sensi-tive to that,” he added. —Kay Shipman

ISU study: Districts gain financially from wind farmsBY KAY SHIPMANFarmWeek

School districts benefitfinancially from wind farmconstruction even when gener-al state aid decreases, accordingto a new study by the IllinoisState University (ISU) Centerfor Renewable Energy.

Matt Aldeman, senior ener-gy analyst with the center,reported the study results,including data from McLeanCounty’s Ridgeview District inColfax, and Lee County’s LeeCenter District in Paw Paw.Aldeman spoke at a recentwind farm siting and zoningconference.

Property tax revenue from awind farm jumps the first yearafter construction is complet-ed, but there is a lag beforestate aid calculations incorpo-rate the increase in equalizedassessed values, Aldeman said.

“When districts get fundingis important; the general stateaid (to schools) will lag tax basegrowth by two years,” he said.

“When property tax revenuegoes up, the public doesn’tunderstand what happens togeneral state aid.”

Aldeman illustrated thechange in the Ridgeview Dis-trict’s finances before and afterthe Twin Groves Wind farmeast of Bloomington was builtin 2007-2008.

For the first school year afterconstruction was completed,the district received an addition-al $396,000 in revenue. The dis-trict’s revenue difference pre-and post-wind farm develop-ment grew to $1.28 million thesecond year — even though thedistrict’s general state aiddecreased because of theincrease in property tax revenue.

By the third year followingconstruction, the district stillreceived $697,000 more in rev-enue compared to the yearbefore the wind farm was built.

“Local (property) wealth —almost without exception — isbetter than the concern about(the uncertainties of) gettingfunding from the state,” Alde-man told FarmWeek.

A similar impact hasoccurred with the Lee Center

District because property taxrevenue from the MendotaHills Wind Farm has bolsteredthe district’s coffers while gen-eral state aid has decreased.

Even now, in the seventhyear following construction,the Paw Paw District receivesan estimated $200,00 differ-ence between pre- and post-wind farm development rev-enue.

Districts can plan for wind

farms’ gradual depreciation,usually over 19 years, Aldemansaid. By year 19, the wind farmwould be fully depreciated sothe change in revenue would

not be as great, he added.“But you’ve (districts) got

20 years of (revenue) benefitbefore that year,” Aldemansaid.

Page 7: FarmWeek Feb 20 2012

technology

Page 7 Monday, February 20, 2012 FarmWeek

Computer firm supplies broadband in Northwestern IllinoisUses cable,tall structuresBY KAY SHIPMANFarmWeek

A Stephenson Countycomputer entrepreneur isproving Northwestern Illi-nois can access high-speedInternet despite conventionalwisdom and Internet mapsthat claim otherwise.

“We’re doing our part toget Northwestern Illinois litup with high-speed (Inter-net),” said Jay Butson, presi-dent of Computer Dynamicsof Northwest Illinois LLC,Freeport.

Butson and his compa-

later purchased six smallInternet companies. Today, itis one of the state’s largestprivate broadband providers,he speculated.

“We found there is a lotof (customer) demand forhigh speeds,” he said.

Broadband enhances eco-nomic development in thethree-county area and allowslocal residents to work else-where. For example, a womanwho lives in Elizabeth in JoDaviess County telecommutesdaily to her job at a Chicagohospital via high-speed Inter-net, he added.

Butson speculated thegovernment-funded Inter-net infrastructure projects

in Illinois would not benefithis company. He also ques-tioned who will providetechnical support andanswer customers’ ques-tions after those projectsstart providing service. Incontrast, Butson’s locallybased employees providetechnical support for hiscustomers.

As for future broadbandexpansion in rural Illinois,Butson said it can occur,and he is willing talk withothers about the challenges.

“It takes a lot of work toget where we are today,” hesaid.

“We’re not the only wire-less company in Illinois.There are other companiesdoing it (providing broad-band),” he added.

Butson pointed out someregions of Illinois havehigh-speed Internet despitebroadband maps showingotherwise as in the casewith Northwestern Illinois.

In Northwestern Illi-nois’ case, “that’s not thetruth at all,” Butson con-cluded.

ny’s computer division, JCWiFi, currently serve 2,300customers primarily inStephenson, Jo Daviess, andCarroll counties. The servic-es also reach into Ogle andWhiteside counties. Thecompany website is{www.jcwifi.com}.

JC WiFi’s Internet cus-tomers include police andfire departments, schools,libraries, businesses, farms,and residences within a2,000-square-mile area.

Butson is using two fiberoptic cables and high-speedmicrowave links to supplybroadband across the serv-ice area. His networkincludes 120 broadcast sta-

tion sites on water towers,silos, and similar tall struc-tures to relay signals.

“If there is a suitablestructure and it makessense, we’re always lookingfor (new) sites,” Butsonsaid. He said he frequentlyreceives offers to add newstructures because farmersare willing to help theirneighbors access broad-band.

Butson started his Inter-net services 7.5 years agoafter he bought a 35-cus-tomer Internet service in theLake Carroll area. Over theyears, JC WiFi grew as But-son first worked with anelectric cooperative and then

New FCC guidelines will affect use of two-way FM radiosBY DANIEL GRANTFarmWeek

Farmers who use two-way FM radios on theiroperations either will needto upgrade or replace theirequipment by the end ofthis year.

The Federal Communica-tions Commission (FCC),as part of a transition tonarrowbanding technology,will require all FM radios tooperate on 12.5 kilohertz(KHz) bandwidth or less byJan. 1, 2013.

Many FM radios current-ly operate on 25 KHz band-width.

“It’s a narrowing ofbandwidth (being imple-mented by the FCC),” JimMoyer of Moyer Electron-ics in Groveland, told theRFD Radio Network. “Itwill affect business use ofFM radios.”

Many consumers use cel-lular phones for mobilecommunication and there-fore won’t be affected bythe new regulations.

But a number of workersin industries (such as farm-ing, construction, and rail-road) that require physicalactivity and constant com-munication still rely ontwo-way FM radios, accord-ing to Moyer.

Earl Williams, presidentof the Winnebago CountyFarm Bureau, is a farmerwho will be affected by thenew regulations.

“If you’re doing a lot ofback and forth (communi-cation), an FM radio reallyhelps,” Williams toldFarmWeek. “For instance,if you’re communicatingfrom the combine to thegrain cart, it’s much moreeffective than a cellphone.”

Williams noted that farm-ers who have commercial

drivers licenses also couldbe affected by the new regu-lations as two-way radioscould be an alternative tohand-held cell phones.

FarmWeek previouslyreported the Federal MotorCarrier Safety Administra-tion issued a new rule thatprohibits truck and bus driv-ers from using hand-heldcell phones while driving.That rule took effect Jan. 3.

Some existing two-way

FM radios, mostly thosepurchased in the past twoto three years, will be capa-ble of operating at the nar-rower bandwidth while oth-ers may be upgraded.

But most users of FMradios likely will be betteroff buying new equipment,according to Moyer.

Williams estimated hewill buy four to five newFM radios at a cost ofabout $300 to $350 apiece.

“They’re still cheaperthan they were 20 years

ago,” Williams said. “Andright now there still is plen-ty of time to do it (pur-chase or upgrade FMradios). If you wait untilfall and everybody realizeswe need to do this, therecould be problems gettingthe equipment.”

Moyer recommended

farmers unsure about thestatus of their current FMradios get a list of theirequipment and check withsuppliers to see if they canupdate existing radios or ifthey need to buy newequipment.

The new FCC guidelinesgo into effect Jan. 1, 2013.

‘If you’re doing alot of back andforth (communi-cat ion) , an FMradio really helps.’

— Earl WilliamsWinnebago County farmer

Page 8: FarmWeek Feb 20 2012

Biotechnology continues totake root in the developingworld, as awareness of theneed for global ag sustainabili-

ty catches up to the food needsof a growing population.

According to a new reportby the International Servicefor the Acquisition of Agri-biotech Applications (ISAAA),biotech crops were planted ona record 395 million-plus acresworldwide in 2011 — a rough-ly 8 percent increase over2010.

Some 16.7 million farmersplanted GMO crops: ISAAAreported 90 percent were“small-resource” farmers fromdeveloping countries, which inturn accounted for nearly 50percent of 2011’s globalbiotech acres. ISAAA suggestsdeveloping nations will exceeddeveloped countries in GMOacres planted in 2012 — Brazil’scurrently second to the U.S.

“Brazil is a major engine ofbiotech growth, and also acountry with enormous agri-cultural production and envi-ronmental conservation,” Illi-nois Farm Bureau Senior

Commodities Director TamaraNelsen noted. “It’s also nice tosee that the European scientif-ic community — Swedish and

British scientists — are sup-porting biotech publically.”

The five leading biotechdeveloping countries are Chi-na, India, Brazil, Argentina,and South Africa. Those coun-tries, which planted 44 percentof the world’s biotech crops in2011, represent 40 percent ofthe world’s population.

China is moving ahead at aparticularly fast clip — Chi-nese growers planted 9.6 mil-lion acres for a 71.5 percentadoption rate in 2011. WhileBt cotton currently is the onlycommercial GMO cropapproved for production there,Bt rice and phytase corn arenow in field trials.

Bt rice reportedly couldraise yields by 8 percent, animportant gain for China’sgrowing population and thenation’s export economy. As anenvironmentally challengedChina continues to boost live-stock/meat production, phy-tase corn can help reducephosphorous levels in swinewaste.

Beijing-based seed companyOrigin Agritech Limited is

biotechnology

FarmWeek Page 8 Monday, February 20, 2012

Refuge report shows new procedures work — industryBY MARTIN ROSSFarmWeek

A new report purportedlyindicating a three-foldincrease in non-compliancewith Bt corn refuge require-ments actually highlightsindustry success in locatingand addressing non-compli-ance “hot spots,” according toa National Corn GrowersAssociation (NCGA) biotechspecialist.

According to data from theAgricultural BiotechnologyStewardship Technical Com-mittee (ABSTC), a consortiumof biotech companies thatmarket Bt products, 41 per-cent of 3,053 farmers inspect-ed in 2011 failed to fully com-ply with refuge requirements.

ABSTC submits an annualreport to the U.S. Environ-

was to focus on and findgrowers who don’t understandor aren’t executing compliancerequirements and visit them tomake sure they’re in compli-ance,” Fields said. “If they’renot, we can begin to rectify it.

“This was specificallydesigned to find growers whowere out of compliance. Thus,the number should be higher.”

ABSTC emphasized that in2011, the majority of growerssurveyed planted requiredrefuge sizes within requireddistance of all Bt corn fields.The survey indicates themajority of all Bt fields hadassociated refuge.

Further, according to thereport, the majority of grow-ers found out of compliancein 2010 were found to becomplying with IRM require-ments in 2011. That, accord-ing to NCGA, confirms that

the CAP approach is working. Reported refuge compli-

ance continues to be lower inthe southern cotton-growingregion than in the Corn Belt.Southern growers have a larg-er required refuge size, smallerfield sizes, more diverse crop-ping systems, and greatercomplexity of operations, andABSTC plans heightened on-farm assessments within thatregion in 2012.

To help farmers develop2012 IRM plans and refugestrategies, NCGA has updatedits “IRM calculator,” whichoutlines various refuge systemoptions.

The calculator, developedin collaboration with ABSTCcompanies and applicable toall Bt products, is available viacomputer or smart phone bylogging onto {www.irmcalcu-lator.com}.

mental Protection Agency(EPA) describing industry-coordinated Bt complianceefforts.

The 2011 crop report wasthe first submitted followingimplementation of a newenhanced Compliance Assur-ance Program (CAP) programdesigned to improve insectrefuge management (IRM)efforts. EPA has set specificguidelines for planting non-Btcorn varieties in conjunctionwith Bt corn to reduce poten-tial for insect resistance toGMO varieties.

Under the enhanced CAPprocess, companies that previ-ously selected producers foron-farm compliance audits ona purely random basis nowfocus on customers whosesales records indicate they

have purchased little or nonon-Bt refuge seed — at leastfrom them.

Nathan Fields, NCGAdirector of biotechnology andeconomic analysis, stressedfarmers “have the right to buyrefuge from whomever theywish.” But possible discrepan-cies in Bt/non-Bt seed pur-chases may indicate non-com-pliance or at least a need tofurther educate growers, hetold FarmWeek.

ABSTC IRM Subcommit-tee Co-chairman Joanne Car-den argues the new approachhas resulted in identifyingmore non-compliant growers.That, she said, demonstratesthe enhanced CAP “is workingas planned.”

“The whole idea behind(enhanced CAP procedures)

expected to commercializeGMO phytase corn in China,followed by herbicide-tolerantand Bt corn. “The Chinese arecontinuing to develop theirown (biotech) platforms,”National Corn Growers Asso-ciation biotech specialistNathan Fields toldFarmWeek.

ISAAA noted key biotechprogress across Africa: SouthAfrica, Burkina Faso, andEgypt are producing GMOcrops; Kenya, Nigeria, andUganda are conducting croptrials; and others includingMalawi have signed off onfuture trials.

The European Union (EU)offered mixed news. Six EUcountries planted a record282,911 acres of biotech corn,and ISAAA cited a “stronglyworded open letter” from 41Swedish scientists in supportof GMO crops and a petitionendorsed by scientists in theUnited Kingdom.

But German-based BASFhas halted GMO crop develop-ment in the EU because of“the negative political and con-sumer push-back,” ISAAAreported.

“They just decided it was intheir best interest to focus onthe Americas and Asia forbiotech development,” saidFields, who discussed themove with company represen-tatives.

“It does indicate that theEU market is going to contin-ue to be a challenge when itcomes to biotech acceptance.The EU continues to isolateitself on the issue.” — MartinRoss

Biotech crops taking rootacross more of the planet

APHIS may streamline biotech approval process

Soybean and corn producers are hoping federal regula-tors can match — or at least gain on — the heightened paceof ag technology development.

During a Washington meeting with the American Soy-bean Association’s (ASA) Biotech Working Group,Michael Gregoire, deputy administrator of USDA’s Ani-mal and Plant Health Inspection Service (APHIS)Biotechnology Regulatory Services Program, outlined anew agency effort to streamline the approval process fornew biotech traits.

ASA President Steve Wellman argued the soybean industryhas much to gain from prospective biotech improvements thatwill increase yields, improve soy nutrition, fight disease, and“offer competition and alternatives in the marketplace.”

Illinois Farm Bureau Senior Commodities DirectorTamara Nelsen called the plan “a very positive step and onethe industry has been concerned about as more and moreproducts are in the pipeline.” She noted GMO productapprovals “seem to be taking longer and longer.”

That’s a concern for corn as well as soybean growers:National Corn Growers Association biotech specialistNathan Fields notes hopes that an initial drought tolerancetrait will be commercialized in 2013 and anticipates contin-ued development of new “platforms” for biotech weed andinsect control.

“We’ve seen a little bit of a slowdown (in approvals), andwe understand that slowdown has been driven primarily bysome of the (recent federal) lawsuits regarding RoundupReady alfalfa and Roundup Ready sugar beets,” Fields toldFarmWeek.

“But APHIS seems to have taken some aggressive stepsin reorganizing the way it approaches the (biotech product)deregulation process without compromising any of the sci-entific rigors of the process. We’re happy to see APHIStaking those steps toward maintaining the integrity of ourregulatory system — keeping it science-based and effi-cient.”

Statutorily, APHIS originally was expected to clearacceptable new products within six months, but that processhas come to take up to five years in some cases.

That’s raised concerns about continued U.S. research andinnovation — in the time APHIS has taken to approve sev-en new crop traits, Brazil has OK’d 23 new traits for itsfarmers.

Court challenges have complicated product approvals.Ironically, the GMO sugar beet, a focus of continued legaland political debate in the U.S., currently is the biotech cropwith the fastest rate of adoption globally. — Martin Ross

Page 9: FarmWeek Feb 20 2012

EvEnts

Page 9 Monday, February 20, 2012 FarmWeek

Nutrient management, landstewardship workshop focus

Information about nutrient management and land steward-ship will be offered from 7:30 a.m. to 12:45 p.m. Friday, March2, at a free workshop for farmers in the Big Bureau CreekWatershed. The event will be held in the Bureau County MetroCenter, Princeton.

Dan Schaefer, nutrient stewardship director for the IllinoisCouncil on Best Management Practices, will be one of thespeakers.

Meeting sponsors include The Wetlands Initiative, PrairieRivers Network, and the Soil and Water Conservation Districtsin LaSalle and Lee counties.

Nominations sought for McCloy ag education programIllinois Farm Bureau has

the opportunity to nominateone Farm Bureau leader orstaff person between theages of 28-40 for the 2012John J. McCloy Foundationprogram.

The program aims toimprove understanding ofGerman and American agricul-

ture through a three-weekfunded educational program oftravel in Germany. Travel willoccur between September andNovember.

Complete details, includ-ing an application templatehave been e-mailed to thecounty Farm Bureaus and tocurrent and past leaders

throughout the state.For more information on

the program, contact IFB pro-gram manager Peggy Romba,at 309-557-2007 [email protected]. Applica-tions are due March 9.

At its March meeting, theIFB board will select the Illi-nois nominee and forward thatapplication to the AmericanFarm Bureau Federation(AFBF) by March 30 for itsselection process. Acceptanceconfirmation will be made byJune 1.

Each state Farm Bureaumay submit one application toAFBF for the program. AFBFPresident Bob Stallman willselect nominees to forward tothe American Council on Ger-

many, which makes the finaldecisions.

The McCloy Fund of theAmerican Council on Ger-many was established in 1975as a tribute to John J. McCloy,soldier, statesman, lawyer,

banker, and the first civilianU.S. High Commissioner forGermany. McCloy workedcontinually to strengthenfriendship and cooperationbetween Germans and Ameri-cans.

Women in Ag seminar March 23Women who are involved

in agriculture will find a widerange of topics at theWomen in Agriculture Semi-nar March 23 at the iWirelessCenter, Moline. The earlyregistration deadline isMarch 1.

Registration will start at 8a.m., followed by a 9 a.m.keynote address by MichelePayn Knoper of {CauseMat-ters.com}. She will discussleadership given the significantchanges facing agriculture.

Speakers will include:Adam Nielsen, Illinois FarmBureau national legislativedirector, and Lori Laughlin,IFB director of issue man-agement. Topics will rangefrom financial planning tomanaging farm finances tocommunicating with con-sumers.

The early registration feeis $50, which includes break-fast and lunch. Registrationsreceived after March 1 willcost $60. The walk-in regis-tration fee will be $75.

To register, contact theRock Island County FarmBureau office at 309-736-7432 or go online to{www.extension.iastate.edu/scott/news/ -womeninagriculture}.

Seminar sponsors includethe Farm Bureaus in Bureau,Carroll, Fulton, Henry,Knox, Lee, Mercer, McDo-nough, Rock Island, Stark,Warren-Henderson, andWhiteside counties and

Iowa’s Scott County FarmBureau.

Other sponsors are RiverValley Cooperative, JohnDeere, 1st Farm Credit Serv-ices, FS/GROWMARK,Country Financial, First Mid-west Bank. University of Illi-nois and Iowa State Exten-sion are conference partners.

Page 10: FarmWeek Feb 20 2012

trade

FarmWeek Page 10 Monday, February 20, 2012

Auction CalendarStarted Thurs., Feb. 16. 12 p.m. EndingMon., Feb. 27th at 7 p.m. Online Only

Auction. Espe Auctioneering.www.espeauctions.com

Tues., Feb. 21. 10 a.m. Coles Co RealEstate. Kathryn Walker Robertson Trust,CHARLESTON, IL. Stanfield Auction Co.and Pierce Farm Mgmt. www.stanfield-

auction.comTues., Feb. 21. McLean Co. Farmland.Jean Wilson Estate. Soy Capital AgServices. www.soycapitalag.com

Tues., Feb. 21. 10 a.m. Ford Co FarmLand. Day Family, MELVIN, IL. Bill Kruse,

Auctioneer.Tues., Feb. 21. 10 a.m. Knox Co. LandAuc. Romona D. Hinckley Estate, GALES-BURG, IL. Van Adkisson Auction Service,LLC. www.biddersandbuyers.com

Tues., Feb. 21. 1 p.m. IL Multi-Use LandAuction Mason Co. Murray Wise

Associates. murraywiseassociates.comTues., Feb. 21. 160.87 Ac. McLean Co.Soy Capital Ag Services. www.soycapi-

talag.comWed., Feb. 22. McLean Co. Farmland.Mabel Laesh Trust. Soy Capital AgServices. www.soycapitalag.comWed., Feb. 22. 10 a.m. Unreserved

Auction Online Only. www.bigiron.comWed., Feb. 22. 207 Ac. McLean Co. SoyCapital Ag Services. www.soycapita-

lag.comFri., Feb. 24. 1 p.m. IL Beef Expo AnnualLivestock Eq Auction. SPRINGFIELD, IL.Cory Craig, Auctioneer. edinburgauc-

[email protected]., Feb. 24. 9 a.m. Grundy ConsignmentAuction. MORRIS, IL. Richard A. Olsonand Assoc. www.richardaolson.comSat., Feb. 25. 9 a.m. Annual Spring

Consignment Auction. XENIA, IL. Dagg’sAuction Co.

Sat, Feb. 25. 11 a.m. Farm machinery.Wanda Nash ~ Former Clinton Nash

Farm, XENIA, IL. Carson Auction, Realty& Appraisal Co. www.carsonauctionan-

drealty.comSat., Feb. 25. 10 a.m. Farm Eq Auction.Mike Jones Estate, TOWER HILL, IL.

Jordan Auction Service. jordanonlineauc-tions.com

Sat., Feb. 25. 9 a.m. Farm Machinery andConsignment Auction. WATERLOO, IL.Schaller Auction Service. www.auc-

tionzip.comSat., Feb. 25. 10 a.m. Saline and

Williamson Co Land Auction. MARION, IL.BuyAFarm.com

Mon., Feb. 27. 10 a.m. Farmland Auction.John and Dana Martin, GIBSON CITY, IL.

Bill Kruse, Auctioneer.Tues., Feb. 28. 9 a.m. Annual SpringAuction. CARLINVILLE, IL. Rick Stewart

and Mike Crabtree, Auctioneers.www.biddersandbuyers.com

Wed., Feb. 29. 10 a.m. Bureau Co. LandAuc. Sheffield, IL. Hertz Farm Mgmt.

www.hfmgt.comThurs., Mar. 1. 2 p.m. 184 +/- Ac.

Champaign Co. Land Auction. KennethCender Farm, MAHOMET, IL. WallaceLand Co. www.wallaceland.com

Thurs., Mar. 1. 11 a.m. 126 Ac. CropLand. Roland Wuthrich Estate,

ORANGEVILLE, IL. Creighton Barker,Auctioneer.

Thurs., Mar. 1. 10 a.m. Woodford &Tazewell Co. Land Auc. WASHINGTON,IL. Hertz Farm Mgmt. www.hfmgt.comThurs., Mar. 1 7 p.m. Monroe Co LandAuction. WATERLOO, IL. BuyAFarm.comFri., Mar. 2. 6 p.m. Farmland Real EstateAuction. Jake and Helen Bryant ~ JBStables, BURNT PRAIRIE, IL. BarnardAuctions. www.auctionzip.com id #2008Fri., Mar. 2. and Sat., Mar. 3. 9 a.m.Both Days. Consignment Auction.GORDYVILLE, IL. Gordon HannaganAuction Co. www.gordyvilleusa.comSat., Mar. 3. 10 a.m. Huge Forys EstateToy Auction. Janet Forys, MASCOUTAH,

IL. Mark Krausz Auction Service.www.krauszauctions.com

Sat, Mar. 3. 9 a.m. Consignment Auction.MURPHYSBORO, IL. Canning Auction

Service. www.canningauctions.comMon., Mar. 5. 10 a.m. Hancock Co. LandAuction. Margaret L Harrison BilderbackKilpatrick Estate, CARTHAGE, IL.

Sullivan Auctioneers, LLC. www.sulli-vanauctioneers.com

Mon., Mar. 5. 10 a.m. Real Estate Auc.John B. Dwyer, EL PASO, IL. SchmidgallAuction Services, Inc. www.schmidgal-

lauctions.comTues., Mar. 6. Kankakee Co. FarmlandAuc. Soy Capital Ag Services. www.soy-

capitalag.comTues., Mar. 6. 10 a.m. Champaign CoLand Auction. URBANA, IL. Hertz Farm

Mgmt. www.hfmgt.comTues., Mar. 6. 10 a.m. 260 Ac. Coles Co.Paul H. Johnston and Elizabeth Johnston,

ARCOLA, IL. Stanfield Auction Co.www.stanfieldauction.com

Tues., Mar. 6. Kankakee Co. FarmlandAuc. Soy Capital Ag Services. www.soy-

capitalag.comWed., Mar. 7. 12:30 p.m. 1159 +/- Ac.Kankakee Co. KANKAKEE, IL. Roland

Rosenboom, Managing Broker.www.rosenboomrealty.com

Thurs., Mar. 8. 10 a.m. 75 Ac. DouglasCo. Farmland. First Federal Savings andLoan Land Trust #1179, ARCOLA, IL.

Stanfield Auction Co. www.stanfieldauc-tion.com

Thurs., Mar. 8. 7 p.m. Monroe Co. RealEstate Auc. WATERLOO, IL.

BuyAFarm.comThurs., Mar. 8. 10 a.m. Rock Island CoLand Auction. COAL VALLEY, IL. Hertz

Farm Mgmt. www.hfmgt.comThurs., Mar. 8. Spring Farm Closeout andConsignment Auc. Agri-Tech, Inc., RAY-

MOND, IL. Sat., Mar. 10. 10 a.m. Rock Island CoFarmland Auction. The Margaret VetterEstate, BUFFALO PRAIRIE, IL. SteveRelander Auctioneer/Farm Broker.www.relanderauctions.com

Sat., Mar. 10. 9 a.m. Absolute LandAuction. Keck’s Marsh, PANA, IL.

BuyAFarm.com

Economist: TPP could reinvigorate U.S.-Japan marketBY MARTIN ROSSFarmWeek

Continued emphasis onfree trade dialogue could helpthe U.S. raze the current Asianbeef wall and rebuild post-North America Free TradeAgreement (NAFTA) Japanesemarket share, according toUSDA’s top economist.

As the administration mullspossible consolidation of fed-eral trade programs and agen-cies — a move some see as astep backward in U.S. exportdevelopment — USDA ChiefEconomist Joseph Glaubernotes potentially majorinroads to be made in theAsian market in particular.

Exports have “saved” mar-gin-battered U.S. livestockmarkets over the past fewyears, Glauber argued, notingbeef sales finally are exceeding“pre-BSE levels.”

He sees significant exportgrowth potential in a prospec-tive Trans-Pacific Partnership(TPP) agreement, “particularlyif Japan is brought in.”

TPP participants currentlyinclude the U.S., Australia,Brunei, Chile, Malaysia, NewZealand, Peru, Singapore, andVietnam, and Taiwan’s newly re-elected President Ma Ying-jeouhas reiterated his push for hisnation’s involvement, as well.

“Obviously, we alreadyexport a lot to Japan,” Glauber

pant market share, Glaubersees potential to bring in othermajor players and ultimately“multilateralize” non-tariffissues in order to reach com-mon regional standards.

TPP talks also could aid inresolution of issues surround-

ing “sensitive” commoditiessuch as dairy, he suggested. Henoted a continued market shiftover the past 10 to 15 years asU.S. dairy competitiveness hascome to be driven by “com-mercial demand rather thansurplus (milk) disposal.”

told FarmWeek. “They’ve fall-en off a little bit as the (NAF-TA) countries have grown asexport partners with us.

“But Japan is a very strongmarket. If you look at particu-lar commodities like beef andrice and some other meatproducts, if they were to bringdown (import) tariffs further, Ithink that would be very, veryimportant.”

Tariff reductions are merelyone hoped-for outcome ofEast-West talks, the formerWorld Trade OrganizationDoha Round lead negotiatorstressed.

Glauber argued reducedduties on meat and poultry areineffective “if we can’t get thefirst pound of product in”because of non-tariff sanitary-phytosanitary (SPS) issues —according to the economist, a“big focus” of TPP talks.

In 2003, Japan suspendedU.S. beef imports followingannouncement of a BSE casein Washington. In late 2005,the ban was partially lifted, butit was quickly reinstated afterbanned cattle bone materialwas found in a U.S. veal ship-ment. Japan relented sevenmonths later, allowing entry ofbeef from cattle 20 months ofage or younger.

The U.S. is not alone inconcerns about the wary Asianmarket. Japan last weekannounced a ban on importsof all Australian poultry prod-ucts following an outbreak ofavian influenza among ducksin the state of Victoria, elicit-ing charges of “overreaction”from Australia’s NationalFarmers Federation.

Though he admits TPP mayoffer but a “small start” interms of cumulative partici-

Chinese delegation agreesto large order of U.S. soy

A delegation of Chinese importers, led by Chinese VicePresident Xi Jingping, last week signed agreements to purchase$4.3 billion worth of U.S. soybeans.

The agreements were signed during the U.S.-China Agricul-tural Symposium hosted by USDA in Des Moines.

“China is the largest export market for U.S. soybeans, pur-chasing approximately 25 percent of our production,” saidSteve Wellman, president of the American Soybean Associa-tion (ASA). “The Chinese purchases definitely add value toU.S. soybeans.”

The commitments signed last week total about 317 millionbushels, ASA reported.

Illinois Horse Fair to offer clinics, entertainmentThe Illinois Horse Fair March 2-4 will

offer classes with top trainers and eques-trian evening entertainment on the IllinoisState Fairgrounds, Springfield.

The fair is sponsored by Illinois FarmBureau, Purina Feed, Midway Trailer Sales,and Koetter & Smith Inc. The event is pro-duced by the Horsemen’s Council of Illinois.

HorseCapades, an equestrian varietyshow with horse breeds and riding stylesfrom around the world will be featured at7:30 p.m. Friday and Saturday. A separateticket is required for that event, and advancetickets are encouraged because performanc-es have sold out the last three years.

A number of trainers will offer clinics tohelp riders and their horses in a variety of

disciplines. The program includes 25 breedand sport demonstrations, the stallion rowand parade, an aisle of horses for sale, andthe all-youth horse judging trials.

More than 140 vendors will offer equip-ment and services in the trade show.

New this year will be a quality horse auc-tion at 3:30 p.m. March 4 in the LivestockCenter. Consigned horses will be availablefor viewing at noon March 4 in the salehorse section of the 25 Series Barn.

Information and consignment con-tracts are available online at {www.Sta-leyAuctionService.com}, by e-mail at [email protected], or by calling 309-370-4337.

The fair will open at 1 p.m. Friday with a

reduced $6 admission charge. Tickets are$12 for adults and $6 for children and sen-iors for the Saturday or Sunday fair admis-sion; weekend passes are $20 for adults and$10 for children or seniors.

Admission tickets for the HorseCa-pades show on Friday and Saturday cost$9 for adults and $6 for children and sen-iors; reserved seating is $15 for adults and$10 for children and seniors.

Advance tickets may be purchasedonline with a credit card or by calling theHorsemen’s Council at 217-529-6503.Only cash will be accepted at the door.

Fair information and schedules and spe-cial hotel rates are online at {www.Horse-mensCouncil.org/HorseFair}.

Page 11: FarmWeek Feb 20 2012

Young Leaders

Page 11 Monday, February 20, 2012 FarmWeek

Bustling ag economy rewards, challenges young farmersBY DANIEL GRANTFarmWeek

The strength of the ageconomy in recent years hasprovided many young peoplewith a golden opportunity toenter farming or grow theiroperations.

USDA forecast net farmincome for 2011 increased 28percent compared to 2010 andtotaled $100.9 billion.

“Agriculture is a real excit-ing industry to be in right

now,” said Jason Bunting, anIllinois Farm Bureau YoungLeader from Livingston Coun-ty who serves on the AmericanFarm Bureau FederationYoung Farmers and RanchersCommittee.

Bunting and other youngfarmers at the IFB YoungLeader State Conference inBloomington discussed withFarmWeek the opportunitiesand challenges facing youngfarmers and ag industry pro-fessionals.

The event this monthattracted about 370 YoungLeaders from around the state,which was 20 more peoplethan last year. The theme forthis year’s event was “UnleashYour Potential.”

Loren Dickirson, a YoungLeader from Lawrence County,in recent years saw enoughpotential in farming to expandbeyond his family’s farm.

He bought his first tract ofland late last year and also is inthe process of opening a newhog facility. He previouslyworked off-farm jobs, includ-ing being an instructor atWabash Valley College.

“I chose to stay in farmingfull-time and took the neces-sary steps,” Dickirson said.“I’m hoping to not ever haveto look for a winter job again.”

Keeping young people infarming and attracting newblood to the industry appears tobe vital to world food security.Population forecasts suggest

farmers must increase food pro-duction 70 percent by 2050, yetmore than 60 percent of U.S.farmers are 55 years or older.

“(The farm) is a great placeto raise a family, but it has itschallenges,” Bunting said.“And passing (farms) to thenext generation is a major,major issue.”

Brad Schmidgall, a YoungLeader from Livingston Coun-ty who works at a retail agfacility, believes it is even moredifficult for young people toget started in production agri-culture without the assistanceof family or friends alreadyestablished in the business.

Illinois land prices the firstthree quarters of last yearincreased 23 percent compared

to 2010, according to the Fed-eral Reserve Bank of Chicago.

Meanwhile, USDA project-ed total production expensesfrom 2010 to 2011 increased$34 billion to a record $320billion while government pay-ments declined 14.4 percent.

“Without family involve-ment, it’s very difficult to cre-ate an operation on your own,”Schmidgall said. “(High start-up costs) put younger peoplepotentially behind the eightball.”

Schmidgall, therefore,believes some of the bestopportunities for young peopleto get involved in agricultureare through ag-affiliatedcareers, such as processing ormarketing.

U of I students to host ExplorACESMarch 9-10

Students may try a varietyof experiences and learn aboutthe University of Illinois Col-lege of Agricultural, Con-sumer, and Environmental Sci-ences (ACES) at ExplorACESMarch 9-10 on the Urbana-Champaign campus.

ExplorACES is a student-run event to acquaint prospec-tive and admitted ACES stu-dents with the college’s faculty,curriculum, and student organ-izations. Connect to Explor -ACES on Facebook and Twit-ter or go online to{www.exploraces.org}.

More than 2,000 students areexpected to attend March 9from 9 a.m. to 3 p.m. and March10 from 10 a.m. to 2 p.m.

Information will be avail-able on study-abroad pro-grams, nearly $2 million inscholarships, and opportunitiesfor students with ACESdegrees. More than 125exhibits will showcase academ-ics, research, and studentdevelopment.

“ExplorACES is the ulti-mate opportunity to learnmore about the college, espe-cially if you are a soon-to-behigh school graduate or trans-fer student interested in finish-ing a bachelor’s degree,” saidJason Emmert, ACES assistantdean of academic programs.

Parents are encouraged toattend, Emmert said.

Current ACES studentshave been planning the eventfor the past six months.

“ExplorACES was builtfrom a student’s perspective,”said Janell Baum, ExplorACESco-chair of publicity. “Havingthe right information in yourhands and experiencing thepeople, the places, and the cur-riculum allows you to make thedecision that is right for you.”

Free parking and free shut-tle service will be provided toand from parking lot E-14, justwest of the Assembly Hall.“We built a mobile website thisyear, complete with maps,parking, and exhibit informa-tion {www.exploraces.org},”Baum noted.

Page 12: FarmWeek Feb 20 2012

fb in action

FarmWeek Page 12 Monday, February 20, 2012

Sharon Knorr, ag literacy coordinator for Adams County, left, goesover a class lesson with Meredith Brinkman, a John Wood Commu-nity College student who is involved in a new ag education pro-gram in the county. (Photo by Shawn Valter)

Adams Ag in the Classroompartners with John Wood CCBY SHAWN VALTER

Adams County Ag Literacy has partnered with John WoodCommunity College (JWCC) to develop a new agricultureclass called AGR 195 Ag in the Classroom (AITC).

The focus of the class is for an agriculture student tolearn how to teach agriculture. Meredith Brinkman, a JWCCstudent, will be teaching agriculture concepts to an after-school program, a public school classroom, and a parochialclassroom.

Sharon Knorr, ag literacy program coordinator for AdamsCounty, is the instructor. She will provide guidance on learn-

ing theory and Illinois state stan-dards/common core standards aswell as topic objectives.

Brinkman will decide on thetopics to teach and then learn how to develop the lessonwithin her allotted class time. She will take into considera-tion the age of her students and their learning style.

Another piece will be communication and backgroundknowledge. She will have to know her topic and be able tocommunicate the objective of the lesson and also answerquestions from her audience.

This is an exciting collaboration for Adams County ag lit-eracy. Ag Literacy can be promoted in more locations andwe can provide a real-life experience for a college student tobe a part of ag education. Adams County Farm Bureaudirectors and JWCC instructor Gary Shupe came up with theidea and made it possible.

Shawn Valter is manager of Adams County Farm Bureau. Hecan be reached at 217-222-7305.

BY TERESA GRANT-QUICKMore than 80 farmers had a

hot breakfast while learning ofways to stay safe on the farmat the second “Put Safety Firston the Farm” breakfast heldrecently at the Lexington Com-munity Center.

Livingston and McLeanCounty Farm Bureaus andPrairie Central Cooperativehosted the annual event to givefarmers a refresher courseabout the hazards they faceevery day.

John Lee, safety specialistwith Grain and Feed Associationof Illinois, showed videos andpictures of safety hazards on thefarm including ladders, PTOentanglements, grain dust explo-sions, and grain engulfments.

80 Livingston County farmers hear about safety on the farm

BY TASHA BUNTINGIn 2010, 51 grain entrapments were document-

ed — the highest number ever reported, accordingto Purdue University’s Agricultural Safety andHealth Program. Nearly three-fourths of themoccurred on farms. The rest occurred at commer-cial facilities.

In an effort to promote safe grain handling, aswell as how to rescue an entrapped person, a grainrescue and protection training session was held lastweek at the Grundy County Highway Department.

The free program was sponsored by TSQuick Enterprises, Grundy County FarmBureau Young Leaders, GRAINCO FS, FirstMidwest Bank, and Pioneer.

It was part of the efforts of the Grundy Educa-tion and Safety Golf Outing Committee. About175 persons attended the two sessions, includingfarmers, Seneca FFA members, grain elevatoremployees, members of the public, and GrundyCounty fire personnel.

The training was conducted by the Safety &Technical Rescue Association, affiliated with GSI.It was designed to educate farmers and employeeshow to assistin a grain res-cue operation,as well as howto prevent a grain entrapment.

Through funds raised by the Education andSafety Committee last year ($15,150), a grain rescuetube was donated to each of the following: theVerona/Kinsman Fire Protection District, theGardner Fire Protection District, South Wilming-ton Fire Protection District, Morris Fire Depart-ment, and the Coal City fire Department.

The four remaining fire protection districts inthe county will receive their grain rescue tubes laterthis year or early in 2013.

Tasha Bunting is manager of Grundy County FarmBureau. She can be reached at 815-942-6400.

Erica Frye, a member of the Grundy County Young Leaders Committee, is “rescued” by members of the Safetyand Technical Rescue Association after being engulfed in corn during a training session last week at theGrundy County Highway Department. (Photo by Tasha Bunting)

Trooper Mark Kastorff with the Illinois State Police discussed the needfor safe movement of farm equipment on roads during a recent farmsafety breakfast. (Photo courtesy of Livingston County Farm Bureau)

“The No. 1 cause of grainengulfment is grain that is outof condition,” Lee said. “Pre-venting grain engulfment startswith managing grain condi-tion.”

Other factors that increasethe risk of grain engulfmentinclude high-capacity grainhandling systems, workingalone, and a sense of securitydue to experience. Lee warnedfarmers that experience is nosubstitute for taking the proper

safety precautions. It onlytakes a few seconds to becomeburied in grain, and 92 percentof victims do not survive.

Trooper Mark Kastorff,commercial vehicle enforce-ment officer with the IllinoisState Police, discussed roadsafety issues for farm equip-ment. He advised farmers thatimplements of husbandry arerequired to have visible slowmoving vehicle (SMV) signsand proper hazard lights (oneflashing amber and two red) tokeep both motorists and farm-ers safe on the road.

Kastorff also addressedtrucking regulations concern-ing farmers, including Depart-ment of Transportation num-bers, commercial driver’slicenses, and the new cellphone use ban.

Participants also had the

chance to win door prizes thatincluded SMV signs, fire extin-guishers, spotlights, headlamps, and a set of equipmenthazard lights.

Each attendee received aplasticized “Farm Safety StartsHere” sign that doubled astheir placemat, safety glasses,and ear plugs.

Getz Fire Equipment,Stoller International, Bloom-

ington-Normal Audiology, andTrue Value in Lexington con-tributed to the prizes. Fundingfor the breakfast was providedin part through a farm safetygrant from Illinois FarmBureau and Country Financial.

Teresa Grant-Quick is managerof the Livingston County FarmBureau. She can be reached at815-842-1103.

Entrapment training benefits farmers, fire departments

Page 13: FarmWeek Feb 20 2012

from the counties

Page 13 Monday, February 20, 2012 FarmWeek

ney, and circuit clerk willattend, as well as candidatesfor representatives in theIllinois House 90th Districtand 16th Congressional Dis-trict.

• Deadline to returnmembership dues is March1. If you did not receiveyour dues notice, call theFarm Bureau office at 857-3531.

LIVINGSTON —Livingston County

Farm Bureau Foundationcollege scholarships avail-able are one $2,000 Founda-tion Elite scholarship and anEthel K. Hoerner scholar-ship worth up to $1,500.Foundation/Ethel K.Hoerner scholarships for upto $1,500 are available forhigh school graduating sen-iors. Students must bemajoring in an ag-relatedcourse of study. Deadlineto return applications is 4p.m. Tuesday, Feb. 28, to theFarm Bureau office. Callthe Farm Bureau office at815-842-1103 for moreinformation.

MERCER — Thespring market out-

look meeting will be at 6:30p.m. Thursday at the FarmBureau office. Doug Yoder,Illinois Farm Bureau seniordirector of affiliate and riskmanagement, will discussfederal crop insurance. Callthe Farm Bureau office at309-582-5116 for moreinformation.

• The Mercer County FarmBureau Foundation will offerscholarships to members ordependents of Mercer CountyFarm Bureau members. Col-lege students or high schoolseniors who have been admit-ted to a college may apply.Scholarship applications areon the website {www.mercer-cfb.org}. Deadline to returnapplications is March 31. Callthe Farm Bureau office at309-582-5116 for more infor-mation.

• The Women in Agricul-ture conference will be from9 a.m. to 3 p.m. Friday,March 23, at the iWirelessCenter, Moline. MichellePayn Knoper {CauseMat-ters.com} will be the speak-er. There will be severalbreakout sessions and speak-ers. Cost is $50, whichincludes breakfast and aluncheon buffet. Cost is $60for reservations after March1. Walk-in price is $75. Callthe Farm Bureau office at309-582-5116 for reserva-tions or more information.

MONROE — TheMonroe County

Farm Bureau Foundationhigh school senior scholar-ship applications are due byMarch 1. Applicants mustbe pursuing an agricultural-

related field of study. Callthe Farm Bureau office at939-6197 or [email protected] for anapplication.

MONTGOMERY —Farm Bureau will

host an open house from 1to 3 p.m. Monday, Feb. 27,for retiring Country Finan-cial agent Dennis Krueger,at the Farm Bureau office.He will retire with more than30 years of service.

• Montgomery CountyFarm Bureau Foundationwill award six $1,500 schol-arships to MontgomeryCounty Farm Bureau mem-bers or dependents of amember who are pursuing anagricultural-related field ofstudy. Deadline to returnapplications is noon Mon-day, March 12. Visit thewebsite {www.mont-gomerycountyfb.com} formore information or anapplication.

PEORIA — FoodCheck-Out Day will

be from 10 a.m. to 1 p.m.Thursday at the PeoriaKroger’s store on SterlingAvenue. Customers may“spin the wheel” game tolearn more about agricultureand win Kroger gift cards.

• A stroke detectionhealth screening will beMonday, Feb. 27, at theFarm Bureau auditorium.Cost for four screenings is$100. Call 877-732-8258 forreservations or more infor-mation.

PIKE-SCOTT — An“On the Road” semi-

nar will be at 1 p.m. Fridayat the John Wood Communi-ty College ag building, Perry.Kevin Rund, Illinois FarmBureau senior director oflocal government, will be thespeaker. Adams, Brown,Cass-Morgan, Pike, andScott County Farm Bureauwill sponsor the seminar.

STEPHENSON —Seats are still available

for bus trips to Conklin’sBarn II Dinner Theatre inGoodfield on April 15; theJune 5 Cubs vs. Brewersbaseball game in Milwaukee;and the June 12-13 trip toIndiana Amish Country.Also the March 16 Gatheringof the Green at John Deereconvention in Davenport,Iowa; the Aug. 14 IllinoisState Fair, and the Aug. 20Cubs vs. Brewers at Milwau-kee. Call the Farm Bureauoffice at 815-232-3186 forvisit the website{www.stephensoncfb.org}for more information.

• A preview program forthe Jan. 22-Feb. 7, 2013, tripto Australia and NewZealand will be at 7:30 p.m.Thursday, March 15, at theFarm Bureau office. Jack

• Farm Bureau and CountryFinancial representatives willsponsor a farm estate andtransfer planning seminar atnoon Wednesday, Feb. 29, atthe Farm Bureau office.Lunch will be served. JamesHughes, Country Financialconsultant, and Pam Apkewith the LeFevre, Oldfield,Myers, Apke, and Payne LawGroup, will be the speakers.Call the Farm Bureau office at217-342-2103 by Wednesdayfor reservations or more infor-mation.

FORD-IROQUOIS —Viewpoint breakfast

meetings will be at 7 a.m. atthe following dates andplaces: Tuesday, Feb. 28,Happy Days Diner, Roberts;and Tuesday, March 6, atAnnabelle’s Diner, Gilman.Call the Farm Bureau officeat 800-424-0756 for moreinformation.

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

JACKSON — An AARPdefensive driving pro-

gram will be from 1 to 5p.m. Monday and Tuesday,Feb. 27-28, at the FarmBureau office. Deadline toregister is Friday. Call BobTyson, AARP instructor, at618-684-5643 for moreinformation.

• Jackson and WilliamsonFarm Bureaus will sponsor amarket outlook program at 6p.m. Thursday at SouthernFS, Marion. Dale Durch-holz, AgriVisor Services, willbe the speaker. Call theFarm Bureau office at 618-684-3129 by Wednesday forreservations or more infor-mation.

KANKAKEE — Theannual meeting will

be at 5:30 p.m. Thursday,March 15, at the Hilton Gar-den Conference Center,Kankakee. Bob Stallman,American Farm Bureau Fed-eration president, will be thespeaker. Dinner will beserved. A string quartetfrom Olivet Nazarene Uni-versity music departmentwill provide the entertain-ment. Cost is $15 for mem-bers and $30 for non-mem-bers. Call the Farm Bureauoffice at 815-932-7471 forreservations or more infor-mation.

LEE — The Govern-mental Affairs Com-

mittee will sponsor a “Meetthe Candidates” night at 7p.m. Tuesday, Feb. 28, at thePaw Paw Community Build-ing. Candidates for District2 county board, state’s attor-

ADAMS — An “On theRoad” seminar will be

at 1 p.m. Friday at the JohnWood Community CollegeAg Center at the Orr Farm.Kevin Rund, Illinois FarmBureau senior director oflocal government, will be thespeaker. Call the FarmBureau office at 217-222-7305 for reservations ormore information.

• A Viewpoint luncheonmeeting will be at 11:30 a.m.Monday, March 5, at Sprout’sInn Restaurant, Quincy.State Sen. John Sullivan (D-Rushville) and State Rep. JilTracy (R-Mt. Sterling) will bethe speakers. Call the FarmBureau office at 222-7305 forreservations or more infor-mation.

BROWN — An “Onthe Road” seminar

will be at 1 p.m. Friday at theJohn Wood Community Col-lege Ag Center at the OrrFarm. Kevin Rund, IllinoisFarm Bureau senior directorof local government, will bethe speaker. Call the FarmBureau office at 217-773-2634 for reservations ormore information.

BUREAU — FarmBureau will sponsor a

seminar at 8:30 a.m. Friday atWise Guys, Princeton.Michael Boehlje, Purdue Uni-versity professor of thedepartment of agriculturaleconomics and center forfood and ag business, willpresent “Landscape of Agri-culture – Today and Tomor-row.” Lunch will follow theprogram. Cost is $20. Callthe Farm Bureau office at815-875-6468 for reserva-tions or more information.

COLES — Foundationscholarships are avail-

able to high school seniorsand college students who aremajoring in agriculture or anag-related field of study.Applications are available atthe Farm Bureau office oronline at {[email protected]}. Deadline toreturn applications to theFarm Bureau office is 4 p.m.Friday, March 23.

• New membership dis-counts on parts and servicefrom Pilson Auto Center and10 percent off My Store onWednesdays are available.Call the Farm Bureau officeat 345-3276 for more infor-mation.

EFFINGHAM —Farm Bureau will

sponsor an “On the Road”seminar at 7:30 p.m. Monday,Feb. 27, at the Farm Bureauoffice. Kevin Rund, IllinoisFarm Bureau senior directorof local government, will bethe speaker. Call the FarmBureau office at 217-342-2103 for reservations ormore information.

Wideman, TriState Travel,will present the program.Call the Farm Bureau officefor more information.

• Farm Bureau will spon-sor a basic cardiopulmonaryresuscitation course from 9a.m. to 12:30 p.m. Saturday,March 10, at the FarmBureau office. Call the FarmBureau office at 815-232-3186 for reservations ormore information.

• Lime Rock Brown Swisscheese is available at theFarm Bureau office. Call theFarm Bureau office for moreinformation.

• A defensive drivingcourse will be from 10 a.m.to 3 p.m. April 17-18 at theFarm Bureau office. DougSommer will be the instruc-tor. Lunch will be served.Call the Farm Bureau officeat 815-232-3186 for reserva-tions or more information.

VERMILION — FarmBureau and County

Market will celebrate FoodCheck-Out Week through Sat-urday by collecting groceriesfor area food pantries. Collec-tion points will be the DanvilleCounty Market stores and theFarm Bureau office. FarmBureau members will bag gro-ceries at the stores from 1 to 3p.m. Friday.

• The Young Leader Com-mittee will sponsor a funnight for members andpotential members Saturdayat Jupiter’s, Champaign. Callthe Farm Bureau office at217-442-8713 for reserva-tions and details.

WABASH — FarmBureau will sponsor

an “On the Road” seminar at5:30 p.m. Monday, March 5,at the Farm Bureau office.Kevin Rund, Illinois FarmBureau senior director oflocal government, will be thespeaker. Call the FarmBureau office at 262-5865 forreservations or more infor-mation.

• Scholarship applicationsare available. A $500 schol-arship will be awarded to ahigh school senior and a cur-rent college student who willpursue an ag-related field ofstudy. Call the Farm Bureauoffice for more information.

WARREN-HEN-DERSON — The

Warren-Henderson FarmBureau Foundation is accept-ing scholarship applications.Deadline to submit applica-tions is Wednesday, Feb. 29.Call the Farm Bureau officeat 309-734-9401 for moreinformation.

“From the counties” items aresubmitted by county Farm Bureaumanagers. If you have an event oractivity open to all Farm Bureaumembers, contact your countyFarm Bureau manager.

Page 14: FarmWeek Feb 20 2012

profitability

FarmWeek Page 14 Monday, February 20, 2012

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn02-09-12 38.6 16.5 29.002-02-12 37.5 17.1 40.4Last year 35.7 24.9 27.6Season total 794.4 690.5 741.0Previous season total 1059.6 811.6 739.6USDA projected total 1275 975 1700Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.30-$61.00 $43.7840 lbs. $69.03 $69.0350 lbs. no longer reported by USDAReceipts This Week Last Week 105,297 112,894*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 $78.47 $80.94 -2.47Live $58.07 $59.90 -1.83

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

Steers 125.00 123.00 2.00 Heifers 125.25 123.00 2.25

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 $155.93 153.73 2.20

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

Slaughter Prices - Negotiated, Live, wooled and shorn 105-160 lbs. for149.98-179 $/cwt. (wtd. ave. 158.17); dressed, no sales reported.

Prepare now to face challenges in production ag for 2012 BY JEFF BUNTING

It’s time to think about the2012 growing season. There’sstill a lot of speculation on the

number ofcorn and soy-bean acresthat will beplanted thisyear.

Productionagriculturefaces manychallenges

many of us have never beforeseen. As you prepare forspring, here are some thingsto think about as you consid-er ways to make the yearmore profitable for your

farming operation: Corn following corn again

was challenged in 2011.Even though the major issuewas lack of rain, FS crop spe-cialists worked jointly withtheir customers to implementa nitrogen management sys-tem.

This system uses all sourcesof nitrogen, including nitro-gen stabilizers, to keep theammonium available to thecorn crop and not lost to theenvironment, and nitrogenapplication incrementallyapplied over the course of theyear instead of in a singleapplication. The fall of 2011was ideal for a first application

of nitrogen using this system. We recently learned of the

spread of resistant weedsacross Illinois. Our currentweed-control strategy ofglyphosate continues to bechallenged in many areas ofthe state. Yet we cannot affordto lose glyphosate as a tool tocontrol weeds.

There are countless studieswhich show yield loss due toearly-season weed competition,one reason a soil-applied her-bicide helps maximize soybeanyields.

Another reason to use soil-applied herbicide is to preservethe sustainability of glyphosatein a weed-control system.

Increasing the rate of the soil-applied herbicide is an optionto take the pressure off theglyphosate application.

Your FS crop specialist isusing these techniques and tak-ing a proactive approach tomanage and mitigate thespread of glyphosate-resistantweeds.

We also learned insect pestscan adapt to transgenic crops.It’s hard to argue the value ofutilizing transgenic traits tocontrol western corn root-worm. However, over the lastcouple years, this pest hascaused isolated damage in Illi-nois as well as Iowa and Wis-consin.

In 2012, best managementpractices, including rotation,are being implemented; butwith talk of increased cornacres, the use of soil insecti-cides to control corn root-worm is being used as well.

Your FS crop specialist isavailable to help you developprograms that take your farm-ing operation to the next level,allowing sustainability of ourcurrent products, while makingyour farming operation moreprofitable.

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

Jeff Bunting

U.S. farm production expenses forecast to shatter previous recordBY DANIEL GRANTFarmWeek

Farm margins are expectedto tighten significantly thisyear compared to last year,based on recent projections.

USDA last week forecasttotal farm production expensesthis year will increase by $12.5billion (3.9 percent), comparedto 2011, to a total of $333.8billion.

If realized, this year’s totalexpenses would set a newrecord, smashing last year’stotal of about $320 billion.

“It’ll be a tighter year,” saidGary Schnitkey, University ofIllinois Extension farm man-agement specialist. “Still, if wehave $5.40 corn and near-trend

yields, it should be a profitableyear, just not as good as thelast couple.”

USDA last week projectednet farm income for 2012 willtotal $91.7 billion, whichwould be a 6.5 percent dropfrom a year ago.

Margins could be eventighter in Illinois. The U of Irecently projected gross rev-enue on crop farms this yearcould decline by 15 percent.

“Illinois costs are going upmore on crop farms,”Schnitkey said. “Fertilizer(expense) is where we’re seeingthe biggest jump.”

Average fertilizer costs inIllinois are projected to jump13 percent this year (from

$150 per acre in 2011 to $170per acre this year). Cash rentsare projected to increase by 4.5percent.

The Energy Information

Administration (EIA) alsorecently predicted the averageprice for a gallon of regulargasoline will rise from an aver-age $3.53 per gallon last year

to $3.55 this year. EIA pre-dicted there is a 1-in-4 chancethe average gasoline pricecould exceed $4 per gallon inJune.

“I think profit margins willbe thinner this year,” SteveTurner, who farms in Cass andMorgan counties, recently toldFarmWeek.

If the latest USDA estimatefor production expenses isrealized, this would be thesixth time in eight years totalU.S. production expenses post-ed a double-digit increase of atleast $10 billion.

USDA this week will releasemore detailed economic fore-casts for the ag sector at itsannual Ag Outlook Forum inWashington, D.C.

Lower natural gas prices could cap fertilizer marketA significant drop in natural gas prices could

help keep a lid on the fertilizer market, accord-ing to an industry expert.

Joe Dillier, GROWMARK director of plantfood, told FarmWeek last week it is unlikelyfarmers will see a major run-up in nitrogen fer-tilizer prices near-term similar to what occurredin 2008/09 when anhydrous ammonia shot upto $1,200 per ton.

Anhydrousammonia pricesearlier thismonth in thestate rangedfrom $800 to$855 per ton, theIllinois Depart-ment of Agricul-ture reported.

“As we moveforward, proba-bly beyond thisspring, cheapnatural gas priceswill come into play,” Dillier said.

“The market is responding to attractive fer-tilizer prices and more production is comingon,” he continued. “We may have, after thisspring, more supply-side competition, whichprobably will limit the price (of fertilizer)some.”

Natural gas accounts for roughly 80 percentof the cost of ammonia production.

The Energy Information Administration(EIA) recently reported the average price of

natural gas nationwide declined from $11.37 perthousand cubic feet in 2010 to $10.78 in 2011.

This year, EIA projected natural gas priceswill slip to an average of $10.71 as workinginventories continue to set new seasonal highrecords.

So why haven’t fertilizer prices come down atthe same rate as natural gas?

“Natural gasdrove nitrogen(fertilizer) pricesthrough the late1990s and intothe 2000s,” Dilli-er said. “Butafter about 2005(post-HurricaneKatrina), thegrain marketsmoved up andthere was a lotmore (fertilizer)demand aroundthe world.”

World fertilizer demand from the 1990s to2005 increased by about 1 to 2 percent annually,according to Dillier. Since 2006, world fertilizerdemand has increased by 3 to 5 percent per year.

“Since 2005, fertilizer and nitrogen (prices)have been driven not by cost-push but bydemand pull,” he added.

The U.S. imports about 60 percent of itsnitrogen needs from origins such as Canada,Egypt, the Persian Gulf, and Trinidad. —Daniel Grant

Page 15: FarmWeek Feb 20 2012

PROFITABILITY

AgriVisor Hotline Number

309-557-2274

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CASH STRATEGISTCorn Strategy

ü2011 crop: The ChicagoMay contract’s ability to holdthe 50-day moving averagekeeps the door open for morestrength. But the recent per-formance still suggests theminor trend has turned down.Make catch-up sales with Mayabove $6.40. Price another 10percent if May futures closebelow $6.32.

ü2012 crop: Use ralliesabove $5.65 on Decemberfutures to make catch-up sales.

vFundamentals: Therecent announcement thatUkraine traders have agreed tolimit wheat exports to 1.7 mil-lion metric tons (mmt) in theFebruary-July period couldboost export demand for ourcorn. But the additionalwheat availability from Aus-tralia could offset a portion ofthat. Expectations for a bigcrop forecast this week at theUSDA Outlook Forum willcontinue to be a drag onprices. Volatility in financialmarkets remains a significantday-to-day influence. And theGreek issues may not be fullyresolved until after the Aprilelections there, potentiallykeeping the dollar firm.

Soybean Strategyü2011 crop: Chinese pur-

chases added to Brazilianweather to lift prices to a newhigh. But the Chinese busi-ness is mostly new crop, tem-pering the ability to sustainrallies. The market triggered a10 percent sale when Mayfutures pushed through$12.50. Leave an order to addanother 10 percent sale if Mayreaches $12.85.

ü2012 crop: Use rallies tomake catch-up sales. If itweren’t so early, we’d be will-ing to sell more at theseprices.

vFundamentals: South-ern Brazilian weather and Chi-na dominated the marketfocus this past week. Chinasigned agreements to purchase8.6 million metric tons (317million bushels) of soybeanslast week. That was followedup with a reported purchaseof 2.92 mmt (107 millionbushels) on Friday, but 2.75mmt was new-crop. China’s2010/2011 purchases from

the U.S. were 24.4 mmt (896million bushels).

ûFail-safe: If May futurescloses below $12.50, make theold-crop sale.

Wheat Strategyü2011 crop: The minor

trend on Chicago May futuresturned lower. May futures needto close above $6.45 to turn itup again. Use a rally back to$6.45 on Chicago May to wrapup sales. The carry in futuresstill pays for commercial stor-age, making spring hedge-to-arrive contracts the best tool.

ü2012 crop: Use a rally to$6.69 on Chicago July futures

to get sales up to recommend-ed levels.

vFundamentals: With thethreat of cold weather in Rus-sia, Ukraine, and Europeancountries passing, there was lit-tle fundamental support forprices. The Australians raisedthe forecast for their crop to anew record, 29.3 mmt (108 bil-lion bushels). Export businesshas improved with U.S. pricesbecoming competitive againwith other countries. Over thepast few weeks, Egypt hasstepped up and made somepurchases, much of which wassourced from the U.S.

Cents per bu.

USDA to estimate crop acres

Page 15 Monday, February 20, 2012 FarmWeek

bushels per acre, we wouldn’t besurprised to see USDA start justbelow that with additional acreagecoming in lower-yielding areas.But we don’t expect an estimatebelow 157 bushels, either.

Using that as a productionbase, we expect USDA will proj-ect ending stocks of 1.3 billionbushels or more. That’s wheremost of the trade is at today.

Soybeans are a more difficultcall because it’s more difficultto project where USDA expectsplantings to fall. The baselineestimate was 74 million acres,but with the acreage availablefor planting, the acres at a min-imum should be at last year’s 75million. We wouldn’t be sur-prised to see USDA project upto a 1-million-acre increase.

Even with average yields andhigher demand, it’s going to bedifficult not to project endingstocks below 250 million bushels.And it’s easy to build a case itcould be above 300 million.

Wheat plantings should beprojected to increase about 3.5million acres. Winter wheatplantings were estimated to haveincreased 1.3 million in January.And because wet conditions hitplantings so hard last spring,durum and other spring plant-ings should rise a little above 1million acres each, resulting in a3.5-million-acre total increase.

Given generally better con-ditions in wheat areas than lastyear, USDA should use a higheryield than last year, somewherein the 44.25- to 44.5-bushelrange. Even with betterdemand next year, that shouldstill leave ending stocks at 800million bushels or more.

Still, it’s important to remem-ber these estimates are based onlong-term demand models, and“human” insight into productionexpectations. The plantings inparticular don’t always “marryup” well with the March plantingintentions or the actual plantingnumber. These estimates are astarting point only, nothing else.

USDA this week hosts itsannual Outlook Forum. Whileit covers a broad array of issues,the feature that most people inagriculture look forward to isUSDA’s initial estimate on whatthe fundamental structure ofthe crops we will plant thisspring might look like.

In order of importance, thetrade may be most interested inthe corn forecast, the one forsoybeans, and then for wheat.The trade also is interested inseeing the total plantings for theeight major crops for which sup-ply/demand forecasts will bereleased, especially in the wake ofproduction problems in SouthAmerica and Ukraine this winter.

Earlier this winter, and againin the spring planting supplementFeb. 6, we outlined the acreagethat could be available for plant-ing this spring. We argued that ifweather is suitable during plant-ing this year, we could see moreacres planted to soybeans, as wellas to corn and wheat.

Corn is expected to be theprimary beneficiary of addition-al plantings because the eco-nomics favor corn over othercrops. They even favor plantingcorn in the Dakotas over springwheat. It may be the sheer vol-ume of bushels that each pro-ducer has to harvest that couldlimit individual corn plantings.

Popular wisdom in the tradehas 94 million to 95 millionacres planted to corn this year.With the USDA’s baseline esti-mates projecting a 94 millionlevel, we doubt the acres will fallbelow that range. And becauseanything above 93.5 representsa new modern record, we don’texpect USDA to project plant-ings above 95 million.

Yield is more difficult to gauge,but with trend just above 160

Page 16: FarmWeek Feb 20 2012

pERSpEcTIvES

FarmWeek Page 16 Monday, February 20, 2012

LETTERS TO THE EDITORJasper County firstto feature pork burgersEditor:

Regarding your Feb. 6 article, “IPPAbuilds demand for pork one burger at atime,” I wish to dispute the claim thatthe pork burger was created “in the late1980s as part of the national “OtherWhite Meat” campaign.”

Here’s some research I uncoveredwhile writing an article for the village’snewsletter, which is published quarterlyby the Sainte Marie Foundation, a char-itable organization devoted to preserv-ing the history of the Southeastern Illi-nois village (population 250):

The pork burger probably was firstcreated at Hartrich’s Meat ProcessingPlant in Sainte Marie. This little-knownfact emerged in my interview with

owner Tony Hartrich and was con-firmed by Larry Casey, retired JasperCounty Extension adviser.

Casey wanted to do a fundraiser forthe Jasper County Teen Center in thelate 1960s, so he worked with HaroldHartrich (Tony’s father) to develop apork patty for teenagers. They did nottell the kids what kind of meat it wasuntil the end of the fundraiser — andafter that everyone wanted pork burg-ers!

“If you go two counties out fromJasper County, you won’t find porkburgers,” says Casey, “although oneother county claims they created thedelicacy. But I am sure that Hartrich’swas first!”

Today, Hartrich Meat Processing’smost popular and widely selling item is

pork burgers (I like the name “DaBurg-er” that was cited in your article!), andeveryone who grew up in Sainte Marieloves them.

You won’t find a better pork burgeranywhere. They will be a featured itemat Sainte Marie’s quartoseptcentennial(175th) celebration on June 29 and 30,2012.

I am happy to see that DaBurgersare being sold at Chicago events.Maybe they eventually will be in mylocal grocery store. But I bet they willnot be as good as those from HartrichMeats!Patricia Reis,Chicago resident and president andfounder of the Sainte Marie Foun-dation, Sainte Marie

***

Says wind farms notenergy, cost answerEditor:

”A case against wind turbines”(FarmWeek, 2/6/12) was insightful.Additional facts could be cited.

First, on costs, while some jobs arecreated by wind turbines/farms, farmore jobs are destroyed because of theresulting higher costs of electricity.

Both natural gas and coal can pro-

duce electricity at one-half to one-quar-ter the cost of wind energy.

Second, on environmental impact,because of the intermittent nature ofwind energy, backup supply (coal ornatural gas generation facilities) arerequired. These are environmentallyless efficient when used on a part-timebasis, effectively killing any CO2 reduc-tion from using wind energy.

All these factors have led PatrickMoore, co-founder of Greenpeace, tocall wind farms destroyers of wealthand negative to the economy. RatherMr. Moore calls for “responsible envi-ronmentalism.” The latter does notinclude wind turbines.

Finally, while a wind farm increasesthe rural Illinois county’s tax base, itcosts the nation far more in lost jobs,competitiveness, and economic growthbecause wind energy replaces naturalgas and coal at double and four-timesthe cost.

On the other hand, corn-basedethanol replaces more expensive crudeoil and is a win locally and nationally inlowering costs, generating jobs, andenhancing economic growth.Rod Lemon,Monmouth

Letter policyLetters are limited to 300 words and

must include a name and address.FarmWeek reserves the right to rejectany letter and will not publish politicalendorsements.

All letters are subject to editing, andonly an original with a written signatureand complete address will be accepted.

A daytime telephone number isrequired for verification, but will not bepublished.

Only one letter per writer will beaccepted in a 60-day period. Typed let-ters are preferred.

Send letters to: FarmWeek Letters

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The Chinese vice presidentrecently visited the U.S. Sowhat? you might ask. Well, there

is more to thisstory.

Chinese VicePresident Xi Jin-ping is destinedto become Chi-na’s next leaderlater this year.During his visit,he and PresidentObama dis-cussed U.S.-Chi-nese relations.

But that was not his mostimportant meeting. He also flewto Muscatine, Iowa, and recon-nected with a number of Iowaindividuals and families that hemet 27 years ago.

Nearly three decades ago, Mr.Xi was a leader in a pig farmingoperation in China. He led ananimal-feed delegation to Iowa,

toured farms, and spoke at theMuscatine Rotary Club.

He stayed two nights as theguest of a local family, sleepingin their sons’ bedroom while theboys were off to college. Thatcountry hospitality reached outand established a bond with thenext leader of China.

We need to give credit to Mr.Xi for making the effort to re-establish his old relationshipwith those who had welcomedhim 27 years ago on his first visitto another country outside ofChina.

Mr. Xi, over those 27 years,has worked his way up in theranks of the Chinese CommunistParty and is now positioned totake over the leadership.

Will his memorable experi-ence in visiting the HeartlandU.S.A. make it easier for theU.S. to work with China? Thefact that he knows pigs is

bound to help.An interesting sidebar is that

in 1978, I led an Illinois agricul-ture delegation to China and wevisited farms. I will never forgetthat trip and the warm hospitali-ty they extended to us.

These kinds of exchanges canhave a lasting effect on strength-ening understanding and build-ing enduring friendships.

Hopefully, the U.S. and Chinacan look forward to more coop-eration and better relations in thefuture. After all, both countrieshave North Korea to worryabout. And a positive tradingrelationship is vital.

John Block, a Gilson native and formerU.S. agriculture secretary in the Rea-gan administration, is a senior policyadviser with the Washington, D.C.,firm of Olsson, Frank, Weeda, andTerman. His e-mail address [email protected].

Farmer exchanges reap long-term benefits

JOHNBLOCK

Once upon a time in theMidwestern United States thereexisted a major ecosystem —

the tallgrassprairie. It cov-ered some 142million acresfrom westernIndiana throughIllinois and Iowato the easternparts of Nebras-ka and Kansas.

Prairie spe-cialists have long

debated the origin of the tall-grass prairies.

Why wasn’t it covered with

trees, as was the case to the east,north, and south? The amountof rainfall probably was the rea-son for the latter.

But the reason for the lack oftrees is less obvious. It might besoil types, the influence ofglaciations, moisture evapora-tion rates, or even prairie fires.

How about insects? Whatwas the insect fauna like on thetallgrass prairie?

For one thing, all thoseprairie flowers required insectpollinators. Native bees wereeverywhere on the prairie; bysome estimates nearly a thou-sand species existed in the tall-

grass prairie region. Most prairie bees are what

scientists call solitary bees, notsocial bees such as bumble beesthat live in a colony. Bumblebees were certainly common onthe prairie. Honey bees, on theother hand, were absent untilEuropean settlers transportedthem to North America.

Two of the most commontypes of insects associated withprairie habitats belong to theorders Hemiptera and Diptera -the true bugs and the flies.

All true bugs and most fliesare equipped with piercing andsucking mouths. That means

they pierce their plant or animalfood and suck out juice, such assap or blood, for their use.

The insect associated morethan any other with prairiehabitats is the aptly namedgrasshopper. Grasshoppershave chewing mouthpartsadapted to consume the ratherrough leaves of prairie plantsand do well in high-temperaturehabitats.

But the most famous prairiegrasshopper of all did not livein the tallgrass prairies. I’mreferring to the famous RockyMountain locust, a type ofmigratory grasshopper, which

flew from the foothills of theRockies onto the Great Plains.This great cloud of insectsdestroyed all the vegetation inits path.

But no longer. The RockyMountain locust appears to beextinct. Both the locust and thetallgrass prairie are part of anAmerican story that begins,“Once upon a time, there was abig prairie with some large fly-ing grasshoppers ... .”

Tom Turpin is a professor of ento-mology at Purdue University, WestLafayette, Ind. His e-mail addressis [email protected].

Little insects on the prairie influence the tallgrass landscape

TOMTURPIN