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Monday, August 15, 2011 Two sections Volume 39, No. 33

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

MonSAnTo’S new eASyHarvest broccoli features a crownthat extends above the leaf canopyand uniform crown maturity, mak-ing harvest easier. ...........................9

In THe MIDST of a federalprobe into a salmonella outbreaklinked to ground turkey, an Illi-nois producer stresses his com-mitment to biosecurity. ..............8

MAny IllInoIS FArMerShave lowered the i r c rop y ie ldexpectations as potential bushelsevaporated due to a combination ofheat and dryness. ............................7

FMCSA announces favorable ruling for farmersBY KAY SHIPMANFarmWeek

The Federal Motor CarrierSafety Administration (FMC-SA) last week announced it willnot propose any new safetyrequirements or changes torules governing transportationof ag products, farm equip-ment, or farm supplies to andfrom a farm.

The decision means farmerswho have crop share leases willno longer be considered “for-hire carriers,” a designationthat would otherwise haverequired them to get a com-mercial driver’s license.

The agency also determinedstates have adopted “commonsense enforcement practices”of safety regulations for farmimplements of husbandry, andthe federal government will notadd more requirements.

“Illinois Farm Bureau wish-es to express its gratitude toFMCSA, to the Department ofTransportation, and to Trans-portation Secretary RayLaHood for successfullyresolving what we believe wasthe improper interpretation ofthese regulations,” said IFBPresident Philip Nelson.

“We appreciate the agency’sand the secretary’s attention to

page 3), FMCSA officials dis-cussed the next step for farm-ers who failed new-entrantsafety audits before the IllinoisDepartment of Transportation(IDOT) suspended those auditsuntil a final decision was made

on the rule interpretation. An estimated 81 farmers were

ruled to be out of compliancebecause of the new interpreta-tion. Officials said they plan toreview those audits and workwith IDOT and the farmers.

this matter and their willingnessto listen to our concerns,” Nel-son added.

FMCSA determined it wouldnot make any changes regardingthe issue of interstate vs. intra-state definitions that apply tohauling of farm products withina single state’s boundary.

This means that farmerswho operate a farm truck ortruck/trailer combination witha gross vehicle rating of at least10,001 pounds still must obtainand display a U.S. Departmentof Transportation (USDOT)number and register and pay aUnified Carrier Registration(UCR) fee, according to KevinRund, IFB senior director oflocal government.

FMCSA officials creditedthe comments and informationthey received, especially thosefrom farmers, with helpingthem understand the issues andimplications of new interpreta-tions.

“The vast majority (of com-ments) called for us to preservethe guidance that leaves statesto carry out the farm excep-tions as they have for many

years,” said Anne Ferro, FMC-SA administrator.

“We want to make crystalclear that we are not imposingany new regulations.”

During last week’s ag tour inCentral Illinois (see story on

Danforth farmer Bob Tammen, far right, describes his farm wagons to Anne Ferro, second from left, adminis-trator of the Federal Motor Carrier Safety Administration (FMCSA), and Aliase Griffin, left, and CharlesMedalen, both attorneys with FMCSA. Last week, Tammen’s farm was one of several stops for Ferro and herstaff during a Central Illinois agriculture tour for the federal officials. The tour was hosted by Illinois Farm Bu-reau. (Photo by Kay Shipman)

Deficit commission named; ag impact uncertainBY MARTIN ROSSFarmWeek

A pair of developments cap-tured headlines last week: Pre-cipitous dips and spikes in themarket in the wake of debt limitaction and a U.S. credit down-grade, and a sobering forecaston 2011 corn production.

That’s the climate of uncer-tainty farmers and lawmakers faceas a 12-member “super Con-gress” deficit commission gearsup to identify $1.5 trillion in 10-year federal spending cuts. That’son top of $1 trillion in initial cutsincluded as part of the agreementto raise the federal debt ceiling.

The commission is to releaseits plan by Thanksgiving. IllinoisFarm Bureau National Legisla-tive Director Adam Nielsenstressed details of specific farmspending priorities should beleft to House and Senate agcommittees.

instrumental in last-minute 2012estate tax relief action.

“We’ll find out how muchwork we have to do to makethose commission membersaware of what agriculturewants or needs,” Guebert said.“That will be a pretty tall task:Everybody’s going to be look-ing for those 12 committeemembers’ attention to supporttheir programs.”

All six commission Repub-licans have signed an Ameri-cans for Tax Reform pledge tooppose tax increases and sup-port permanent estate taxrepeal. While the debt limitdeal included no provisionsfor raising taxes, the search forbudget savings could endangersoon-to-expire tax measuressuch as the $5 million individ-ual estate tax exemption.

See Commission, page 2

But IFB Vice PresidentRich Guebert Jr. said the com-mission will determine “howsevere the cuts will be.”

The IFB Farm Policy TaskForce meets next week to reviewpotential farm program/risk man-agement options for 2012;Nielsen said concerns about near-term grain supplies underline “theneed to keep a safety net in place.”

“We’re only one nationaldrought away from a real wide-spread disaster,” he said. “Thisyear, too, we’ve had lots offlooding events — it hasn’t beena smooth year for farmers in Illi-nois and across the country.”

Senate Finance CommitteeChairman Max Baucus (D-Mont.) and Sens. John Kerry(D-Mass.), Patty Murray (D-Wash.), Jon Kyl (R-Ariz.), PatToomey (R-Pa.) and Rob Port-man (R-Ohio) will serve onthe commission.

House picks are Ways andMeans Chairman Dave Camp(R-Mich.), top Budget Commit-tee Democrat Chris Van Hollen(D-Md.), Fred Upton (R-Mich.), Jeb Hensarling (R-Texas), James Clyburn (D-S.C.),and Xavier Becerra (D-Calif.).

Nielsen was somewhat sur-prised by the absence of HouseBudget Committee ChairmanPaul Ryan (R-Wis.), who issuedlast spring’s House budget plan,and Senate Majority Whip DickDurbin, a Springfield Democratwho served on 2010’s WhiteHouse deficit commission andas a member of the “Gang ofSix” that worked recently toreach a debt limit/deficit deal.

High-profile pick Kerry is“probably someone who doesn’tunderstand farm programs,”Nielsen said. But Baucus hasbacked several Farm Bureau tax-trade objectives, and Kyl was

KICKING OFF KIC CAMPAIGN — The Illi-nois agricultural industry and its partners will unveila new crop nutrient management strategy at 10:30a.m. Sept. 1 at the Farm Progress Show in Decatur.

The Keep It for the Crop by 2025, known as KIC2025, is a partnership among the state ag industry,state agencies, and other entities interested in nutrientmanagement. The partners are committed to makingmeasureable progress in the adoption of enhancednutrient stewardship practices to address nutrientchallenges.

At the Illinois Corn Growers Association booth,leaders representing the Illinois Environmental Pro-tection Agency, Illinois Farm Bureau, and other agri-culture organizations will discuss KIC by 2025 andthe goals to reduce nutrient losses from agriculture.

FOOD, FUEL, AND FALLACIES? — A newstudy by Texas A&M University and Doane AdvisoryServices found income for beef and dairy farmingoperations has gone up since provisions of theRenewable Fuel Standard went into effect in 2007.

Those findings disprove allegations that greaterethanol production had caused financial problems forlivestock and dairy farmers by increasing feed prices,the National Corn Growers Association (NCGA)stated.

“While it is easy to reiterate artificial argumentsagainst the use of ethanol, we believe this study clear-ly illustrates the fallacies on which they are oftenbased,” NCGA President Bart Schott said.

‘YEAR OF AGRICULTURE’ — Former Univer-sity of Illinois Gardner Endowed Chair in AgriculturalPolicy Robert Thompson has joined the Johns HopkinsUniversity Paul H. Nitze School of Advanced Interna-tional Studies (SAIS) for the school’s global “Year ofAgriculture” focus for 2011-2012.

Thompson, who shares his thoughts on food securi-ty in an upcoming issue of FarmWeek, currentlyserves as a senior fellow of global ag development atthe Chicago Council on Global Affairs. He will helpSAIS develop an ag-focused curriculum to complementexisting programs.

“With agriculture now at the forefront of public andprivate sector agendas, SAIS aims to play a leading rolein bringing this field into the main current of discus-sion in international relations policy,” SAIS Dean Jessi-ca Einhorn said.

“Dr. Thompson is peerless in his standing and suit-ability for taking agriculture beyond land grant univer-sities.”

FarmWeek Page 2 Monday, August 15, 2011

(ISSN0197-6680)

Vol. 39 No. 33 August 15, 2011

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

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Quick takesGoverNmeNt

Kath leen Merr igan, USDA’sdeputy secretary of agriculture,discusses crop conditions withIllinois Farm Bureau members,le f t to r ight , Doug Anderson(Ford-Iroquois counties), BrianNiemann (Montgomery County),and E r i c Rund (Champa ignCounty) shortly after USDA is-sued its August crop productionreport Thursday. IFB Marketers toWashington participants attend-ed USDA’s lockup and briefingof the highly anticipated report,wh ich pro jec ted lower c ropyields and record-high prices.(Photo by Daniel Grant)

USDA projects lower cropyields, record-high prices

BY DANIEL GRANTFarmWeek

USDA last week in its August crop produc-tion report lowered its estimates for corn andsoybean production.

And some analysts believe that trend maycontinue throughout the harvest season asmany farmers saw their crop yield potentialshrivel up in July and so far inAugust due to high heat andspotty rainfall.

USDA on Thursday, in itsfirst estimate of the seasonthat takes 4,500 field samplesand 27,000 farmer surveys intoaccount, lowered its estimate for the nationalcorn yield from 158.7 bushels per acre lastmonth to a current estimate of 153 bushelsper acre.

The national soybean yield on Thursdaywas estimated at 41.4 bushels per acre, downfrom last month’s estimate of 43.4 bushels peracre.

Total production was pegged at 12.9 billionbushels for corn, which still would be thethird-largest crop on record behind the cropsof 2007 and 2009, and 3.06 billion bushels forbeans, which would be the sixth-largest cropon record.

Pete Manhart, market analyst with BatesCommodities in Normal, believes the yieldestimates will continue to fall in subsequentcrop production reports.

“The heat in July, I think people don’t real-ize how much that hurt,” Manhart toldFarmWeek. “I think (the corn yield estimate)153 will go lower as we go into harvest.”

USDA last year, during a similar weatherscenario, started with a corn yield estimate inAugust of 165 bushels per acre that was low-ered to 162.5 in September, 155.8 in October,and 154.3 in November before the annualyield wound up at 152.8 bushels per acre.

USDA last week estimated crops in Illinois

this season will average 170 bushels per acrefor corn, up 13 bushels from a year ago, and48 bushels for soybeans, down 3.5 bushelsfrom last year.

But those estimates could come down aswell based on challenging weather conditionsand a significant reduction in crop conditionratings.

“An extended run of hotnights in July affected yieldslast year,” said Brad Schwab,state statistician with theNational Agricultural StatisticsService Illinois field office.

“The potential is there for thepattern to repeat itself.”

The cuts in crop production estimates,which would tighten the stocks-to-use ratio to5.4 percent for corn and 4.9 percent forbeans, are expected to keep extreme pressureon prices.

USDA in its world ag supply and demandestimates released Thursday estimated record-high crop price averages for 2011/12 of $6.70per bushel for corn, $13.50 for soybeans, and$7.60 for wheat.

“Prices should go up from here,” Manhartsaid.

USDA surprised some analysts as it left itsU.S. corn acreage estimate unchanged at 92.3million acres, despite re-surveying some pro-ducers in July to account for spring floods.The estimate of harvested corn acres, though,was reduced by 500,000 acres.

U.S. soybean acres last week were projectedto total 73.8 million acres, down 250,000acres, and spring wheat acres were projectedto total 12.7 million, down 950,000 acres.

The most significant change to acreageprojections was for cotton, where plantedacreage was cut from 13.7 million to 9.67 mil-lion acres due to the drought in the southernU.S. and record-high abandonment of cottonfields.

FarmWeekNow.com

For more detai ls on USDA’sAugust crop production report,go to FarmWeekNow.com.

Continued from page 1Despite successful efforts to head off U.S. debt

default, Standard and Poor’s (S&P) downgradedthe U.S.’ long-term credit rating from AAA toAA+. According to AgriVisor analyst Dale Durch-holz, that’s the equivalent of moving from an “A”grade to an “A-minus” on the global report card.

The other two major U.S. ratings agencies leftthe nation’s score intact, and beyond raising slight-ly “our cost of doing business,” Durchholz doesn’t

anticipate the S&P downgrade having “any lastingeffect overall.”

Nielsen was hopeful last week’s Wall Streetwhiplash was merely a temporary reaction to eco-nomic uncertainties and that “we don’t have wildswings in the stock market on a daily basis.”

He applauded the Federal Reserve’s pledge lastweek to work to keep interest rates low through2013. “That provides some certainty,” Nielsensaid.

Commission

GOVERNMENT

Page 3 Monday, August 15, 2011 FarmWeek

Tour offers glimpse of modern agricultureTransportation officials getup close and personal briefingBY KAY SHIPMANFarmWeek

Federal officials who regu-late transportation safety lastweek traveled rural Illinoisroads, gazed at massive farmmachinery, and talked with across-section of farmers andagribusinessmen during awhirlwind tour of Central Illi-nois’ agriculture industry.

Their field tour was sparkedby controversial interpreta-tions of federal transportationrules that impact farm truck-ing and a subsequent requestfor information by the FederalMotor Carrier Safety Adminis-tration (FMCSA).

“What this trip has done sowell — and I credit the FarmBureau and it leaders for set-ting it up this way — is helpedus connect the dots andunderstand the essentiality ofthe exceptions and exemptionsin place for farmers,” AnneFerro, FMCSA administrator,told FarmWeek as a buspulled away from PaulSchuler’s Lexington farm.

Ferro was accompanied byFMCSA’s Aliase Griffin, chiefcounsel; Charles Medalen,attorney; and Curtis Johnson,director of governmentaffairs, all based in Washing-ton, D.C.; and Steve Matiolli,

FMCSA’s Illinois divisionadministrator, based in Spring-field.

From several host farms,the group traveled on town-ship and county roads to grainelevators, the routes the farm-ers use to haul their crops to

market. The federal officials

watched as truckloads of grainwere weighed and unloaded atEvergreen FS Yuton Elevator,near Normal, and the McNabbGrain Co., McNabb.

They scanned the bins andtanks at One Earth Energy’sethanol plant in Gibson Cityand viewed the safety equip-ment along with anhydrousnurse tanks and fertilizer andagrichemical equipment atBrandt Consolidated’s fertiliz-er facility in Lexington.

At Martin Brothers JohnDeere dealership in Roanoke,the officials ogled an array offarm machinery before climb-ing into a cab to drive a trac-tor.

Officials with the Federal Motor Carrier Safety Administration and Illinois Farm Bureau staffwatch as the booms of a John Deere 4920 sprayer extend to 120 feet. Martin Brothers’

Roanoke implement dealership offered the federal officials a chance to see the spectrum offarm equipment and an opportunity to drive a tractor last week. (Photo by Kay Shipman)

Anne Ferro, administrator of the FederalMotor Carrier Safety Administration (FMC-SA) was accompanied last week by four staffmembers on an agriculture tour of CentralIllinois. The officials shared their thoughtswith FarmWeek.

Ferro: “This (visit) has reinforced the val-ue of communicating, the opportunities tocommunicate. This has helped us recognizethere are some more things we need to talkabout that can help the federal regulatorswork more effectively to get to that common-sense application of rules meant for over-the-road truckers and the safety of the publicon highways ... and clarity for farmers sowhen they have a question about something,they can have it answered clearly and with acommon-sense application.”

Steve Matiolli, FMCSA’s Illinois divisionadministrator: “We regulate hours of serv-ice, and it was interesting for me to seehow compressed the time is (at harvest).The time they need to get the product outof the farm, into the trucks, and to thegrain elevator. It’s much more of a restrict-ed time frame than I had imagined. That

was very eye-opening for me.”Aliase Griffin, chief counsel: “I had no

idea all the different kinds of equipment they(farmers) used ... the size of the combines.The technology is changing the nature offarming. It’s agriculture, but that is the stuffthat is interesting for us to understand. Themore you know, the more you understand.The more you understand, realistically, thebetter you can do your job.”

Charles Medalen, attorney: “I was perhapsmore ignorant of the types of land owner-ship here. I wonder if Illinois is differentfrom the rest of the country. I thought sharecropping had ended with the Civil War. Com-ing back to the Midwest was a good experi-ence — out here everyone is calm and non-frantic — I like the virtues we have here.”

Curtis Johnson, director of governmentaffairs: “This gives us an opportunity to leaveD.C. and see what is happening in the realworld, learning what everyone does, and wewant to learn more what goes on in thefields. The technology advances are unparal-leled. I was very impressed. You can’t fakebeing a farmer.” — Kay Shipman

“Come on, Anne, it’s yourturn,” salesman Jerry Welchinvited Ferro, who wore alarge smile as she steeredaround the lot. Griffinwhipped out a camera torecord the experience onvideo before taking a spin her-self.

The farmer hosts answeredmany questions and explained

not only their farm leasearrangements, but also howthey use transportation intheir operations.

“I thought it would be agreat opportunity to showthem what we actually do on afarm as far as transportationof our commodities from thefarm to the market,” Schulersaid.

“Seeing is believing,” Ferroadded.

After seeing the scale offarms and farm equipment,the FMSCA officials left Cen-tral Illinois with many photo-graphs and videos of theirfarm experiences, new per-spectives of agricultural tech-nology, and toy replicas of thetractor they drove in Roanoke.

FarmWeekNow.com

For more information about theFMCSA officials tour of agri-culture in Central Illinois go to FarmWeekNow.com.

FMCSA officials share trip insights

government

FarmWeek Page 4 Monday, August 15, 2011

Scuse: Easier crop reporting procedures on the wayBY DANIEL GRANTFarmWeek

Michael Scuse, acting under-secretary for USDA’s Farm andForeign Ag Service, knowsfirsthand about farmers’ frus-trations when it comes to cropreporting procedures.

Scuse is a crop farmer fromDelaware and many times hasstood in line to report identicalcrop information to the FarmService Agency (FSA) and theRisk Management Agency.

“That to me seemed a bitridiculous,” Scuse said lastweek during a meeting withparticipants of the IllinoisFarm Bureau Marketers toWashington trip. “With thetechnology we have today,there’s no reason you (farmers)should have to give your cropreport twice.”

USDA, through its Acreageand Crop Reporting Streamlin-ing Initiative, is in the processof eliminating the need forfarmers to make extra trips tovarious government offices.

In fact, Scuse believes farm-ers with Internet access withintwo or three years should beable to file their crop reports

from home.“We want to find a way to

make life easier for farmers andranchers,” he said.

USDA in the process willbecome more efficient, Scusesaid.

Eventually more timely cropreporting information couldhelp the National AgriculturalStatistics Service improve theaccuracy of its crop productionreports, particularly during theplanting and harvest seasonswhen planted acreage and cropyields can change in a matter ofdays due to changes in theweather or crop prices.

The streamlining initiativewill be implemented in threesteps.

The first will give farmersthe choice of filing their cropreport either with their cropinsurance agent or with FSA.

That information then willbe shared with the variousagencies.

The second step, whichScuse believes could be doablein two to three years, will allowfarmers to file their cropreports online.

“You’ll have the ability to

file your crop report fromhome,” Scuse told IFB mem-bers. “It will help us at FSAmanage the flow of work.”

The third step, which couldbe implemented within four orfive years, will allow farmers totake planting and yield infor-mation gathered from globalpositioning systems in theirtractors and combines anddownload it online directly toFSA.

“We will have more accurateand up-to-date information forcrop reports,” Scuse said.

The expanded use of tech-nology for crop reporting isnot expected to have anadverse effect on the numberof FSA workers or offices.

Farmers who do not haveInternet access and those whoprefer to give their crop reportsin person still will have theoption of going into their FSAoffice.

USDA also is in the processof reducing the time it takes tofile disaster declarations, Scuseadded.

IFB policy supports thestreamlining of crop reportingprocedures.

Michael Scuse, right, acting undersecretary for USDA’s Farm and For-eign Ag Service, discusses the Acreage and Crop Reporting Streamlin-ing Initiative with Illinois Farm Bureau members, left to right, DwayneAnderson (Henry County), Randy Poskin (IFB District 6 director), DougAnderson (Ford-Iroquois counties), and Michael Pettengill, AmericanFarm Bureau Federation intern from Lake Zurich. The meeting, held atUSDA headquarters, took place during the IFB Marketers to Washingtontrip. (Photo by Daniel Grant)

FCC reviewing concernsabout ag GPS impactsBY MARTIN ROSSFarmWeek

Farm groups hope to find a win-win solution for producersand their rural neighbors as federal officials plumb the ramifi-cations of a high-tech communications plan.

Today (Monday), the Federal Communications Commission(FCC) ended public comment on a proposed waiver that wouldenable LightSquared, a mobile satellite communications com-pany, to operate high-powered cellular base stations.

The company, formerly known as Skyterra, plans to developa wholesale 4G wireless broadband communications networkintegrated with satellite coverage across the U.S.

Ag interests fear that network could cause disruptions insatellite global positioning systems (GPS) crucial to mapping offield boundaries and roads; precision planting; targeted fertiliz-er/chemical applications; and operation during conditions oflow field visibility.

The American Farm Bureau Federation (AFBF) has askedthe FCC to ensure LightSquared’s plan would create no inter-ference with GPS receivers and “that the cost of resolving thisissue not be passed along to farmers and ranchers,” throughhigher GPS or equipment costs.

AFBF stressed support for rural high-speed broadbandexpansion. However, that expansion should not come at theexpense of satellite-driven “precision farming” and the pro-duction/conservation benefits it offers, AFBF policy specialistR.J. Karney told FarmWeek.

“Think of a rainbow,” Karney illustrated. “Within that spec-trum, you have all your different sections. Say GPS is in thegreen portion of that rainbow — it runs on the upper portionof that green section. LightSquared has purchased for its usethe bottom part of that green section.

“GPS is a weaker signal compared with what LightSquaredcould produce with its satellites. There is a buffer between thetwo, but LightSquared signal’s just strong enough that it sort ofinterferes with GPS.

“If there’s a technical fix for this, that would be great —we’d be getting our broadband deployment and our farmersand ranchers could rely soundly on their precision agriculture.”

The federal Departments of Defense, Transportation, andHomeland Security have joined producers in their concernsabout potential GPS disruption. The House and Senate haveconducted hearings on the issue, and AFBF has recommendedan additional panel to explore its ag-specific implications.

Meanwhile, FCC Chairman Julius Genachowski pledged lastweek that “we’re not going to do anything that creates prob-lems for GPS safety and service as we explore technical solu-tions that will both protect GPS and allow a new service tolaunch.”

MARKETS

Page 5 Monday, August 15, 2011 FarmWeek

Groups anxious about cash grain communicationsBY MARTIN ROSSFarmWeek

Major grain organizationslast week asked the Commodi-ties Futures Trading Commis-sion (CFTC) to hold thephone on proposed record-keeping rules dictated undercongressional financereforms.

The Grain and Feed Asso-ciation of Illinois (GFAI) isconcerned by a proposedrequirement that members ofdesignated contract markets(DCM) “record all oral com-munications that lead to theexecution of transactions in acommodity interest or cashcommodity.” The proposalwould require records bemaintained for five years.

The CFTC drafted propos-als under the 2010 Dodd–Frank Wall Street Reform andConsumer Protection Act,which seeks sweeping changes

markets “have performed verywell and have been very trans-parent,” and as a result,“there’s not a fire to put out,”he told FarmWeek.

Worst-case interpretation ofthe proposed CFTC rulewould impose an “added costof doing business” on theindustry, Adkisson said. Heargues the knowledge that con-versations are being recordedlikely would “stifle the normalflow of information” between

growers and their buyers orbrokers, possibly affectingmarketing decisions.

“It’s such a slippery slope tostart down this road,” Adkissonsaid. “Does it mean you have torecord the entire conversation,or do you just have to record(contractual) confirmation?

“In the industry, so much ofour conversation is that ebb-and-flow and give-and-take,not really related to the con-tractual arrangements, per se.”

across U.S. financial institu-tions and agencies.

In a letter to CFTC Secre-tary David Stawick, GFAIExecutive Vice President JeffAdkisson noted many graincompanies, feed manufactur-ers, processors, and relatedfirms are members of DCMssuch as the Chicago andKansas City exchanges or theMinneapolis Grain Exchange.

Some own and operate net-works of grain elevators, mills,or processing plants that buycrops directly from growers.

Adkisson said as written, hefears CFTC’s proposal couldextend into cash grain mar-kets, requiring employees at agfacilities to record phone con-versations with growers fromwhom they buy cash grain.Elevators could be required tomaintain e-mails or FAXes, aswell, he warned.

He suggested the proposal

could result in an “undesirablebifurcation” of the cash grainmarket, with differing rules forDCM members and non-mem-bers. Adkisson urged the CFTCto amend its rule to “fully rec-ognize” the regulatory-exemptstatus of cash commodity salesand cash forward contracts.

“We believe strongly thatsuch regulation of the cash mar-ketplace was not intended byCongress nor, perhaps, by thecommission,” Adkisson said.

“Cash transactions, includ-ing cash forward contracts,explicitly have been exemptedfrom CFTC regulation, but aliteral reading of the proposalwould seem to contradict thiswell-established concept.”

Financial reforms wereaimed largely at Wall Streetand other mainstream institu-tions deemed partially respon-sible for the 2008 economicdecline, Adkisson said. Ag

STATE FAIR SHOW RING ADVICE

Payton Creasey, left, 14, and her 13-year-old sister, Alex, shareadvice as they prepare to enter the show ring last week for an Illi-nois State Fair junior livestock class on the Illinois State Fair-grounds, Springfield. The daughters of Robb and Susan Creasey ofMacomb joined thousands of livestock exhibitors on the openingdays of the State Fair. The fair will run through Aug. 21. (Photo byKen Kashian)

The Commodity FuturesTrading Commission hasapproved a plan by the CMEGroup to raise daily tradinglimits on corn futures andoptions, allowing the exchangeto implement a change thatmany grain-handling compa-nies strongly oppose.

The CME Group said lastmonth it would ask the Com-modity Futures Trading Com-mission for permission to raisethe trading limit to 40 cents perbushel from the current 30 cents.The new limits go into effect on

Aug. 22 for Chicago Board ofTrade corn futures, corn options,and mini-sized corn futures.

Doug Yoder, senior director ofmarketing and affiliate manage-ment for Illinois Farm Bureau,said he was not surprised theCME Group implemented thenew price limit for corn.

“We assumed (CME Group)would go ahead and approvethe proposal,” Yoder said lastweek during the IFB Marketersto Washington trip.

CME Group was concernedthe value of the daily limit

CFTC OKs plan to hike corn limitscompared to the value of totalcorn contracts was out of line,according to Yoder. The move,however, was opposed by somefarmers and representatives ofthe U.S. grain elevator industry.

“There is concern aboutadded volatility and just moreexposure, from a margin stand-point, (farmers and others inthe grain industry) could faceon a daily basis,” Yoder said.

NAP application deadlines comingUSDA Farm Service Agency (FSA) State Executive Director

Scherrie Giamanco urges producers who seek 2012 coveragethrough the Noninsurable Crop Disaster Assistance Program(NAP) to do so soon.

NAP provides assistance to producers of noninsurable cropswhen low yields, loss of inventory, or prevented planting occurdue to normal disasters. “Purchasing a crop insurance policy isan easy way for producers to practice risk management,” Gia-manco said.

Canola has a NAP application closing date of Aug. 31. Thefollowing “value loss” crops have a Sept. 1 application closingdate: Christmas trees, aquaculture, turfgrass sod, floriculture,and mushrooms.

The following crops have a NAP application closing date ofSept. 30: forage and grazed crops (such as alfalfa, mixed for-ages, and grass), barley, and rye.

Fruit and perennial crops such as apples, asparagus, blueber-ries, caneberries, grapes, nectarines, peaches, pears, plums,rhubarb, and strawberries have a Nov. 20 application closing date.

Honey has a Dec. 1 application closing date. Spring andsummer planted crops have a closing date of March 15, 2012.

In order to meet eligibility requirements for NAP, crops mustbe noninsurable, commercially produced ag commodity cropsfor which the catastrophic risk protection level of crop insur-ance is not available. If the Risk Management Agency (RMA)offers coverage for a crop in the county, then NAP coverage isnot available for that crop.

In the event of a natural disaster, NAP covers the amount ofloss greater than 50 percent of expected production based onthe approved yield and reported acreage.

Eligible farmers can apply for coverage using Form CCC-471. They must file the application and service fee by applica-tion deadline. That fee is the lesser of $250 per crop or $750per producer per administrative county, up to a total $1,875 forthose with farm interests in multiple counties.

For more information on sales closing dates and NAP, con-tact the local FSA office.

Bernie Walsh, Durand, Winnebago County: We had cooler,more normal temperatures lastweek, along with a nice 0.75 ofan inch of rain on Monday night(Aug. 8). It was a pretty quietweek until Thursday, when thelatest USDA crop report putsome new life in the grain mar-kets. It looks like the hot weather

and lack of rain have had an effect on thefinal yield, like everyone expected they would.The fields of corn that were blown down inmid-July have a lot smaller ears and likely willnot yield as much. Even considering spotsthat will not yield as much, we still have a verygood crop of corn and beans at this point ofthe growing season. Have a good and safeweek.

Pete Tekampe, Grayslake, Lake County: A great week inLake County. We got 1.6 inches ofrain over the weekend (Aug. 6-7)in several showers. That wasenough to keep the balers out ofthe field until Thursday. Not muchstraw or second-cutting hay wasbaled. Corn is looking good andgrowing fast. Beans took a step

backward with the rain starting to deterioratetheir growth. We’re seeing stress spotsbecause of the wet feet they have. Spots areturning yellow and some beans are actuallydying. Still some oats to be cut. Have a greatweek.

Leroy Getz, Savanna, Carroll County: Rain for the week of1.1 inches on Monday (Aug. 8)on my farm. Storms in the south-west part of Carroll County withtornadic winds uprooted treesonto homes and dumped up to 3inches of rain. Cooler tempera-tures were a relief for the live-stock and people. During those

hot days, milk production dropped as muchas 25 percent. Corn ears are showing somesigns of dent and still look to be an averageyield. Lots of deer damage. Growing degreeunits are now at 2,058. Hope the financialmarkets settle and we return to some stabil-ity.

Ryan Frieders, Waterman, DeKalb County: The weatherwas beautiful last week. Wereceived 2 inches of rain over acouple days and it was the firsttime we didn’t have gusty winds allsummer long. The temperatureshave been much cooler, in themid-80s, and the nighttime lowshave been in the low 50s. The

crops are filling in and appreciate the weatherchange. Ears on corn are average; size waslimited by early-season stress. Soybeanscontinue to set and fill pods. Early estimatesalso equate to average yields. August will bean important month in determining finalyields.

Larry Hummel, Dixon, Lee County: Another week ofnice showers. Most areasreceived close to 2 inches. Thebig story last week was diseasepressure that is starting to showup in a few fields. For soybeansit is sudden death syndrome,although I haven’t confirmed ityet. Brown stem rot has similar

foliar symptoms. In corn, it’s Goss’s wiltwhere the upper leaves on the plant dieprematurely. In both cases, symptoms areshowing up early in the season. I’m assum-ing that will translate into higher yield loss-es.

Joe Zumwalt, Warsaw, Hancock County: The tempera-tures have dropped significant-ly, but Western Illinois hasreceived only scattered lightrain over the past month, andthe crop is really showing it.The corn is turning fast sincethe last measurable rainfall wason June 25. Early yield checks

are extremely disappointing — rangingfrom 60 to 125 bushels per acre. I believesome producers will begin harvest beforeLabor Day. The soybeans are beginning toshow drought stress as well and severalfields in the area have been sprayed forspider mites. I don’t believe that I haveever mowed roadsides when it was thisbone dry. Even the alfalfa is needing rain.The cooler temps are wonderful, but a gen-tle couple inches of rain would be greatlyappreciated.

Ken Reinhardt, Seaton, Mercer County: I had a short0.2 of an inch of rain on Aug.5, but there was a 70 percentchance of rain Friday night.Test weight of corn is going tosuffer further if we miss rainagain. The county will notmake the 170 bushel stateaverage USDA came out with

and may not reach the 153 bushel U.S.average forecast in the August cropreport. Numerous yield checks have beenin the 140 to 150 range, with one down to50 bushels. Soybeans look very stressed.

Ron Moore, Roseville, Warren County: We did notreceive any rain last week. Thecracks in the cornfields arenow 15 inches deep. The tilelines have stopped running anywater. Unless we get signifi-cant rain, harvest will be inearly September here. Thecorn is all dented and the

shucks are starting to change color.Soybeans look better with pod fill start-ing. Rains in August and September willhelp the yield prospects. Pasture condi-tions are deteriorating as well. Some ofthe creeks may dry up in the next fewweeks, so we may be moving cattle homesooner than expected.

Jacob Streitmatter, Princeville, Peoria County: Wow!The weather can change fast.From temperatures in theupper 90s to now highs in the70s. With the change in tem-perature, showers and stormsfollowed. From strong windsand flat corn and some rain,to no wind and no rain. After

going through temperatures in the upper90s, pollination with no moisture is notgood for a crop. The corn tipped backedaround two inches on the ears and didmiss some pollination on random kernelson the ear. We’ll leave the rest up to thecombine to decide.

Tim Green, Wyoming, Stark County: Another niceweek with temperatures in themid-80s. The humidity camedown and everybody seemedto be in a little better mood.We could still use one morerain to help the corn finish andthe beans move along. Peopleare scouting fields and check-

ing yields. In general, those who havelooked are thinking they are going to be alittle disappointed in the yield, but timewill tell. Have a safe week.

Mark Kerber, Chatsworth, Livingston County: Cropslooked good and green goingto Colorado on the northernroute, but more burnt up com-ing back through Kansas andMissouri. Some spotty rainswere around here last week,but our immediate areareceived only 0.10 of an inch.

A big rain event is needed to finish offthe corn and keep the soybeans growing.Farmers are trying to figure out howbadly the crop is hurt with no rain thissummer. My neighbor says to stay out ofthe cornfields because it’s not good. Onlylook at the outside rows. Dry weather willbring on spider mites to soybeans, soeveryone seems to be watching for them.Farm activities include scouting, mowing,and getting machinery and bins ready forfall and, yes, the meetings have started.Markets are up and down. Outside mar-kets will influence price direction, alongwith demand and our supply.

Ron Haase, Gilman, Iroquois County: On Monday,Aug. 8, our farms receivedfrom 0.2 of an inch up to 1.7inches of rain. Local corndevelopment is anywhere fromthe R2 or blister stage up tothe R4 or dough stage. Mostsoybean fields range from theR3 or beginning pod growth

stage up to the R5 or beginning seedgrowth stage. Local closing bids for Aug.11: nearby corn, $7.17; new-crop corn,$6.93; nearby soybeans, $13.24; new-crop soybeans, $13. Last week weattended the 39th Exposition inRondonopolis, Brazil. It is equivalent toour county fair.

Brian Schaumburg, Chenoa, McLean County: Much coolertemperatures and 0.25 to 0.5 ofan inch of rain early in the weekhelped fend off a more rapiddeterioration of crops. Early-cornyield surveys are finding 20 to60 percent reductions in yieldsbased on 10-year averages.Some hybrids are not holding up

well at all compared to their refuge counter-parts. Aerial soybean fungicide/insecticidetreatments were completed. Kudos to the U.S.Department of Transportation for their deci-sion on trucking regulations. This proves wecan fight back against over-regulation. Corn,$7.19, $6.89 fall; soybeans, $13.34, $13.02fall; wheat, $6.56.

Steve Ayers, Champaign, Champaign County: Fridaymorning I had a trace of dirt and0.02 of an inch long cobweb inthe rain gauge. But three wavesof rain were forecast to movethrough Friday night intoSaturday, with coverage of 0.25to 0.75 of an inch. USDA has oureastern crop reporting district at

51 percent very short, 42 percent short, and7 percent adequate topsoil moisture, so anyrain will be soaked up like a sponge. OnMonday, Aug. 8, Champaign had a localizeddeluge of 0.55 of an inch in 45 minutes. OnTuesday, Aug. 9, the Douglas County FarmBureau crop tour found an average of 145.7bushels per acre, with a range of 100 to 208bushels per acre. See you at the fair!

Wilfred Dittmer, Quincy, Adams County: It was anotherclear, cool, and dry morning in ourcounty Friday with showers predict-ed. The crops need moisture moreand more with each passing day.Showers last weekend (Aug. 6-7)amounted to only a few drops onthe sidewalks. Some cornfields areshowing stress more than others,

depending on soil type tillage, and if the fieldwas lucky enough to catch a shower.Soybeans also are hanging on, but sure coulduse a drink. We still have some of thoseJapanese beetles also. Have a good week.

Carrie Winkelmann, Tallula, Menard County: We are dry.There has been no rain here fortwo weeks and the corn is startingto suffer. Ears are aborting thetips. For good news, my husbandand I are expecting a new additionto the family at the end ofDecember. We are expecting a lit-tle girl, our first child!

Tom Ritter, Blue Mound, Macon County: I sound like a bro-ken record, but we still have hadno rain. It’s been seven, possiblyeight weeks without measurableprecipitation. All of the rains havegone north or south. All of thegrass is brown and corn is firing.Cooler temperatures havehelped a little bit, but there is a

lot of moisture stress, especially on lighter orcompacted ground. Farmers are not very opti-mistic on corn yields, especially corn aftercorn. Some may be looking at a 30-busheldrop in yield from corn after beans. Soybeans— with rain forecast for the weekend — mightstill have a possibility of gaining some yieldback. But beans, being a dry weather crop,should fare better than the corn with or with-out rains during the weekend. At least pricesare at higher levels, which will help some withthe gross per acre. We will probably see cornharvest starting within the next two weeks inthis area.

Todd Easton, Charleston, Coles County: It was another dryweek in Coles County with only ateaser shower blowing throughon Monday (Aug. 8). The goodnews is that temperatures havecooled down, which has been arelief to both crops and people.With the cooler temperatures, thedie-off of the corn crop has

slowed down, but many disappointing earsare being pulled out of the fields. The ColesCounty Farm Bureau will be doing a yieldcheck this coming week, and I am sure every-one will be very interested in what is learned.There was a significant chance for rain duringthe weekend, and hopefully it materializedand put some pods on the soybean plants thathave been sitting in the field waiting for a drinkfor several weeks now. Keep your fingerscrossed.

FarmWeek Page 6 Monday, August 15, 2011

CROPWATCHERS

Dan Meinhart, Montrose, Jasper County: No measurableprecipitation fell this past week.The first part of last week washot and humid. By mid-week itcooled to highs in the 80s andlows in the upper 50s or lower60s at night. Fungicide applica-tion continues on both corn andbeans. Farmers also are hauling

grain, baling hay, and mowing road ditchesand waterways. The lawn continues to needmowing every week. There was a chance ofrain over the weekend. A nice rain will bemost welcome. Temperatures this week areexpected to be similar to what we have beenexperiencing the last several days.

Ken Taake, Ullin, Pulaski County:We finally received somemuch needed rain last weekend(Aug. 6-7). We received about 1.25inches all together here on ourfarm from several small showers.Rains were highly variable. I’veheard of everything from less than1 inch up to 3 inches, but I thinkeveryone received at least some-

thing. It makes the crops look better at least fora little while. I’m sure the rains were too late forthe early corn, but it sure will help the late cornand the soybeans. Pulaski County Fair is thisweek. We usually get a rain for the fair, and wesure could use another shower. Please taketime to be safe during this coming week.

Rick Corners, Centralia, Jefferson County: We had a nice0.75 of an inch shower earlySaturday morning (Aug. 6). It did-n’t save the day, but sure helpedbreak the downfall for a fewdays. Had some sweet corn theother day, but the grains on itwere pretty sparse. Hope thefield corn is not like that. I’m

afraid to look.

Dave Hankammer, Millstadt, St. Clair County: The pastweek brought relief with tempera-tures ranging from highs in the low80s to lows of the upper 60s, mak-ing daytime tasks easier. The lastrain amounted to 0.3 of an inch onAug. 5 and fell on only a small areaof the region. The weather fore-casters continue to promise scat-

tered rain showers from the west, but thosehaven’t developed yet. The crops continue toprogress with soybean plants adding newgrowth and corn plants filling out the ears.There still is moisture in the soil, but a soak-ing rain would help to move the soybean cropalong. On a recent visit to an open house din-ner in a nearby county, I noted theearlier-planted corn has started the dry downprocess with the husk of the ear changingcolor and the lower leaves of the plantalready brown. Although we had a mixed bagof planting dates, some farmers may startcorn harvest around Labor Day. Local grainbids: corn, $7.05; soybeans, $13.17; wheat,$6.56. Have a safe week.

David Schaal, St. Peter, Fayette County: Enjoying thesomewhat cooler temperatures.No rain here for the week.Farmers are walking into corn-fields and not thinking yieldsare going to be quite as goodas expected a few weeks ago.The heat has caused some pol-lination problems, and along

with that, the corn ears have tipped back.We are still thankful that we had the mois-ture we had through the high-temperatureperiod. The early-planted and early-matur-ing beans have seen some bloom abortion.Overall, we are still hoping and praying foran average or a little above average yield. Alot of grain bin cleaning out and mowing ofroad ditches and waterways is going on.USDA shaved back on what it first thoughtwe had out here in the country. Have agood week.

Ted Kuebrich, Jerseyville, Jersey County: Jersey Countyreceived a very welcome 2.5inches of rain last week. It willbe a big help in filling beanpods. The early-planted corn willnot be helped as much as thelater corn. After the rain, thetemperature cooled down to thelow 80s. Prices at Jersey County

Grain, Hardin: cash corn, $7.13; fall corn,$6.84; January 2012 corn, $7.07; cashbeans, $13.19; fall beans, $12.88; January2012 beans, $13.26; June/July wheat,$6.66.

Page 7 Monday, August 15, 2011 FarmWeek

CROPWATCHERS

Reports received Friday morning. Expanded crop and weather infor-mation available at {www.farmweeknow.com}.

Crop conditions continue to deteriorate in IllinoisBY DANIEL GRANTFarmWeek Many Illinois farmers havelowered their crop yield expec-tations as potential bushelsevaporated due to a combina-tion of heat and dryness.

Illinois Farm Bureau mem-bers discussed the situationlast week with Brad Schwab,state statistician with theNational Agricultural Statis-tics Service (NASS) Illinoisfield office, during IFB’s Mar-keters to Washington trip.

Eric Rund, a farmer fromChampaign County, reportedhis area from July 1 throughthe first week of August

The average statewide tem-perature in July was 80.1degrees, 4.3 degrees abovenormal.

Topsoil moisture in thestate the first of last week wasrated 55 percent short/veryshort and 42 percent adequatewith just 3 percent surplus.

Most of the surplus mois-ture was confined to parts ofthe northwest, northeast, andeast-southeast regions of thestate.

The crop outlook as aresult was much brighter lastweek in some of those areasof the state. “It could be one of our

best corn crops,” said DalePitstick, who farms nearChicago. “Whatever (corn)was down (due to windstormsearlier this season) is back upand (the majority) tasseled andpollinated just fine.”

Schwab noted the heatwave accelerated crop devel-opment in some areas.

Twenty-nine percent of thecorn crop was dented inSoutheastern Illinois as of thefirst of last week.

“There’s going to be somefarmers harvesting corn by theend of this month in SouthernIllinois,” Schwab added.

received just 0.3 of an inch ofrain.

“It’s getting progressivelyworse,” Rund toldFarmWeek. “At the end ofJune, I had probably 95 to 100percent of a corn crop. NowI’ve probably got about 75percent of a crop.”

The situation was the samefor Steve Stallman, a RandolphCounty farmer.

“We’ve been short on rain-fall,” he said. “I’m still opti-mistic and hoping for averageyields. That’s about the best Ican expect.”

NASS last week reducedthe portion of crops in Illinois

rated good to excellent by 3percent for corn and 1 percentfor beans. It was the fifth con-secutive week crop ratingsdeclined in the state.

Crop conditions last weekwere rated 50 percent good toexcellent, 33 percent fair, and17 percent poor/very poor forcorn and 57 percent good toexcellent, 32 percent fair, and11 percent poor/very poor forbeans.

“We’ve seen decliningcorn conditions, and theycontinue to drop,” Schwabsaid. “The heat and lack ofrain certainly had animpact on corn in Illinois.”

Some notes on tillers and tassel earsBY KEVIN BLACK

“Sucker” is an old termreferring to the side brancheson a corn plant. The termoriginated in the belief that

these branch-es sucked theresourcesfrom the mainstalk.

Althoughnot as preva-lent as in pastyears, pres-ence of tillersor suckers in

corn, along with the curioustassel ears, has promptedsome comments and ques-tions.

We also have heard of tas-sel ears on the maincornstalk. This is extremelyuncommon.

Following are some notesabout corn tillers and tasselears:

• Tillers often are found whengrowing conditions are good.

• Tillers may be producedwhen plant populations arehigh but are more common atlower-than-optimum plantpopulation levels.

• Injury to, or inhibition of,the growing point of the cornmay force it to produce tillers.This generally does not occuruniformly within the stand.The cause of this injury oftenmay be determined throughcareful examination of thecorn plant and its growingpoint.

• Ears or tassel ears may beproduced on tillers, but theseseldom survive until harvest.Tillers often fall over beforeharvest begins.

• Nutrient movementbetween the main stalk and the

tiller is limited, but the mainstalk may be able to borrowresources from tillers understressful growing conditions.

Remember that many yearsof corn genetic selection haveresulted in plants having singlestalks that bear only one ortwo ears, with the male (tassel)and female (ear) flowers sepa-rated on the plant.

This was not so with primi-tive corn relatives. From timeto time, the corn plant tries torevert to old growth habitsand we see tillers and tasselears.

Kevin Black is GROW-MARK’s insect and plant diseasetechnical manager. His e-mailaddress is kblack@growmark.com.

Auction CalendarWed., Aug. 17 and Thurs., Aug. 18. 9a.m. Machinery and construction equip-ment. CARTHAGE, IL. Sullivan & Son

Auction LLC.Thurs., Aug. 18. 9 a.m. CST. Huge

Equipment Auction. CHARLESTON, IL.Bauer Auction Service. www.commodi-

tytraders.bizThurs., Aug. 18. 8:30 a.m. CST. Full LineLiquidation Eq. Auction. Formerly HinkleProduce, CISSNA PARK, IL. Schrader

Real Estate and Auction Co., Inc.www.schraderauction.com

Fri., Aug. 19. and Sat., Aug. 20. 8:30a.m. both days. Consignment Sale.ANNAWAN, IL. Hatzer and Nordstrom

Eq. Co.www.hatzernordstromauction.comSat., Aug. 20. 9 a.m. Farm machinery

and miscellaneous. Joan M. Allen Exec.,Estate of John P. Allen, NORTONVILLE,IL. Moss Auctioneers. auctionzip.com ~

Auctioneer #21727Sat., Aug. 20. 9 a.m. Large Multi FarmerAuction. OKAWVILLE, IL. Riechmann

Bros., LLC.www.riechmannauction.com,www.topauction24-7.com andwww.biddersandbuyers.com

Sat., Aug. 20. 9 a.m. Farm machineryand equipment. Glenn F. Koch Estate,VARNA, IL. Lauf Auction Service.

Sat., Aug. 20. 10 a.m. Farm, livestockand hay equipment. Dale Hammitt, COL-

FAX, IL. Haycraft Auction Co.Mon., Aug. 22. 9:30 a.m. Large Fall

Machinery Auction. TAYLORVILLE, IL.James Micenheimer Auction Service.

www.micenheimer.comMon., Aug. 22. 1 p.m. 143 Ac.

Champaign & Ford Co’s. MAHOMET, IL.Murray Wise Assoc., Inc. www.murray-

wiseassociates.com

Tues., Aug. 23. 83.91 Ac. LaSalle Co.Soy Capital Ag Services, www.soycapi-

talag.comWed., Aug. 24. Douglas Co. LandAuction. TUSCOLA, IL. Hertz Farm

Mgmt., Inc. www.hfmgt.comThurs., Aug. 25. 9 a.m. Summer Farm

Closeout and Consignment Auction. Agri-Tech Inc., RAYMOND, IL.

Thurs., Aug. 25. 10 a.m. Farm machin-ery. Dennis Reep Estate, LUDLOW, IL.Bill Kruse, Auctioneer. billkruse.net

Fri., Aug. 26. 10 a.m. DeKalb Co. 80 Ac.Sealed Bid. Children of Walter and

Mildred Luxton, MALTA, IL. Ron Klein orLarry Luxton.

Fri., Aug. 26. 10 a.m. Land Auction.Robert and Verna LaBeau Trust, RobertB. LaBeau, Trustee, KANKAKEE, IL.

Schrader Real Estate and Auction Co.,Inc. schraderauction.com

Fri., Aug. 26. 10 a.m. Henderson Co.Land Auction. Paul and Debra Anderson,

RARITAN, IL. Van Adkisson AuctionService, LLC.

www.biddersandbuyers.comFri., Aug. 26 and Sat., Aug. 27. 9 a.m.both days. Consignment Auction.

RANTOUL, IL. Gordon Hannagan AuctionCo. www.gordyvilleusa.com

Sat., Aug. 27. 10 a.m. Estate Auction.Ralph Siebert Estate “Dec’d”, LEBANON,IL. Mark Krausz Auction Service. krausza-

uctions.comSat., Aug. 27. 9 a.m. Pre-harvest con-

signment sale. LELAND, IL. EspeAuctions.

Sat., Aug. 27. 10 a.m. DeKalb Co. farm-land. Lyle & Gertrude Koppen Estate,

WATERMAN, IL. Gordon Stade, auctioneer.Sat., Aug. 27. 9:30 a.m. Marshall Co.

Farmland by Sealed Bid. Eric C. Petersonand William H. Helm I II, VARNA, IL.

Thomas E. Davies. tdavies@mtco.comor mirandah@mtco.com

Kevin Black

livEsTOcK

FarmWeek Page 8 Monday, August 15, 2011

Grower: Safety remains turkey industry priorityBY MARTIN ROSSFarmWeek

Kauffman Turkey Farmsin Waterman is one of thecountry’s last independentfamily turkey farms, with80,000 birds and its own fed-erally inspected dressingplant.

While his turkey is freshand local, Robert Kauffmanresists using trendy con-sumer catchphrases such as“organic” or “free range.”

But as federal officialscontinued last week to inves-tigate a nationwide salmonel-la outbreak linked to groundturkey, Kauffman stressedhis and his fellow producers’commitment to on-farmbiosecurity and consumersafety.

Earlier this month, USDAasked Arkansas-based CargillMeat Solutions to recall 36million pounds of groundturkey product amid con-cerns it may have con-tributed to the death of a65-year-old California

inside the facility to preventdisease transmission betweenflocks.

NEARLY A HALF-STATE away, 2011 TremontTurkey Festival Co-ChairmanJim Moore reports the Cen-tral Illinois event has becomea model for food safety.Tremont’s celebration is oneof the largest U.S. festivalsstill allowed to prepare itsown food — workers in Juneserved up to 1,000 turkeysandwiches per hour at the46th annual festival.

Birds for the festival wereprocessed and frozen out-of-state, carefully thawed, andstored at a prescribed tem-perature prior to grilling.Public health officials fromthroughout the country visitthe small-town gala “to showother festivals how to do thisstuff,” Moore said.

woman and illnesses for 77people in 26 states. Utahofficials last week reported anew case.

The USDA recall wasrelated to ground turkey“chubs” (tubes) dated foruse through Aug. 23 and

bearing the number “P-963”inside the USDA’s inspectionmark. Visit {www.fsis.usda. -gov/News_&_Events/Recall_060_2011_Release -/index.asp} on the web fordetails.

Kauffman raises his birdsboth on the range and, dur-

ing the winter, in indoorfacilities in DeKalb County.

“The way we keep thatbird healthy hasn’t changed,”he said. “You start off with avery clean environment. Wedo a complete cleanout anddisinfection after a flock has

left.“We try to keep the entire

building, the entire environ-ment, the water lines as cleanas possible and get that birdoff to an excellent start. It’snot really going to have adeveloped immune systemfor at least five weeks. We Aug. 18

University of Illinois Agronomy Day, South Farms, Urbana.Aug. 19

Cover crop workshop, seeding demonstration, 9 a.m. to noon,Franklin Farm, Lexington. For meal reservations or details, call309-452-0830.

Aug. 19-21Horse Days 2011, 6 a.m. to 11 p.m. daily, Boone County Fair-grounds, Belvidere. Call 866-675-2783 or go online to{www.horsedays.net}.

Aug. 26 – Sept. 5Du Quoin State Fair, Du Quoin.

Aug. 30 - Sept. 1Farm Progress Show, Decatur.

Sept. 5-7IAA Bike Ride, across Christian, Logan, Macoupin, Menard,Montgomery, and Sangamon counties.

DATEBOOK

‘We try to keep the entire building, theentire environment, the water lines asclean as possible and get that bird offto an excellent start.’

— Robert KauffmanKauffman Turkey Farms

have to keep it healthy.”Kauffman’s flock health

program begins with earlyvaccination for routineturkey diseases. He is sensi-tive to the debate over antibi-otic use in mature poultrybut uses drugs when unex-pected threats put consumersat risk or may cause animalsuffering.

Kauffman questions theconcept of “antibiotic-free”meat, citing stringent drugwithdrawal standards forbirds. “Go to any meat case:I’ll show you antibiotic-freemeat,” he told FarmWeek.

In order to maintain asecure on-farm environment,Kauffman discourages visi-tors from entering the turkey“house.” Visiting growers orindustry colleagues wear dis-posable “boots” and some-times protective coveralls

specialty growers

Page 9 Monday, August 15, 2011 FarmWeek

Above: Monsanto’s Consuelo Madere com-pares conventional broccoli, right, with thecompany’s Seminis Easy Harvest product,which features a crown that grows above theleaf canopy, stems freer of large leaves, andricher coloring for consumers. Right: Crisp-head Romaine Cross lettuce, a cross betweencrispy iceberg and more nutrient-rich romainethat’s been dubbed “rugby lettuce” for its ovalshape. (Photos by Martin Ross)

New veggies designedfor consumer tastesBY MARTIN ROSSFarmWeek

When Consuelo Madere says her company is trying to get intothe consumer’s head, she may mean targeting a tomato that has agarden flavor or, literally, a head of lettuce both kids and theirparents can enjoy.

Since 2005, St. Louis-based Monsanto has worked with 23vegetable crops. Beyond crop disease, harvest, and shelf lifeissues, researchers explore “the consumer experience when itcomes to eating vegetables,” according to Madere, Monsantovice president for global vegetable seeds.

“If you make them taste better, people will eat more ofthem,” she concludes. The U.S. Centers for Disease Controlreports fewer than 25 percent of U.S. adults consume the recom-mended number of daily fruit or vegetable servings, “and if youlook at teenagers, it’s even worse,” Madere said.

Solving that dilemma requires “better seeds that lead to better andtastier vegetables,” she said. As a result, Monsanto has developedCrisphead Romaine Cross lettuce, which melds the popular appeal ofconventional iceberg lettuce with the nutrition of romaine.

“People, especially children, tend to like the crunch andsweetness of iceberg, but romaine has a lot more nutrient value,”Madere told FarmWeek. “Our breeders have been able to makea cross we hope to get into the market in coming years.”

Taste results from a mix of sugars, acids, and aroma and flavorcompounds. Monsanto is analyzing “heirloom” tomatoes sold atfarm or upscale markets in the hope of incorporating “backyardgarden taste” into commercial varieties available year-round.

Meanwhile, Monsanto’s Easy Harvest broccoli features acrown that extends above the leaf canopy and uniform crownmaturity, making harvest easier. The broccoli florets also are adarker green, enhancing retail visual appeal.

Monsanto plans this fall to launch a new biotech sweet corn.Unlike Syngenta’s pest-resistant GMO sweet corn, which hasbeen in the market for more than 10 years, Monsanto’s productis a “triple-stack” featuring above- and below-ground pest resist-ance and herbicide tolerance traits.

The company initially will target fresh market growers. Byreducing pest feeding and competition with fewer inputs, farmmarketers and their customers should see generally healthier,more appealing ears, Madere suggested.

“There is a dramatic difference in sweet corn that is protectedthrough biotechnology vs. having to spray,” she argued. “Even ifyou spray, you have to spray many times, and you still don’t getthe same kind of control. If you look at the product quality atthe end, it’s really quite dramatic.”

ifb in action

FarmWeek Page 10 Monday, August 15, 2011

IMPORTANCEOF CATTLE, HOGSStudents and older consumers can be visually shown the importance of animal agri-culture now that the Monroe County Farm Bureau Young Leaders Committee decidedto build a cow and pig byproducts dis-p lay. The l ives tock cutouts were dis-played at the Monroe County Fair, andmost people knew that hamburger, roasts,and steaks came from beef catt le, butthey were surprised to learn that suchthings as detergent, soap, shoe polish, cake mix, shampoo, marshmallows, and petfood also comes from them. Shown here with the cow display are Katie Hammel andCaleb Seboldt. A similar display showing products from hogs also was built. Water-loo High School agriculture instructors Tim and Mindy McDermott and FFA memberscut the cow and pig figures out of plywood and Valmeyer resident Dennis Knoblochpainted it. Both displays were in the Farm Bureau booth during the county fair andwill be placed in the Farm Bureau office lobby so additional consumers can learnmore about agriculture’s importance. Teachers also will have an opportunity to usethe displays at their schools. (Photo by Brenda Seboldt, manager of Monroe CountyFarm Bureau)

IFB, FFA drivefor soldiers at Progress Show

The Illinois Farm BureauYouth Education Program isworking with FFA chaptersto collect magazines for theIllinois National Guard’s 1-14th Agri-business Develop-ment Team, which is workingto improve farming inAfghanistan.

From Aug. 29-Sept. 1 atthe Farm Progress Show,FFA Chapters are challengedto donate new and used mag-azines as reading material forthe National Guardsmen.The magazines will be col-lected at the Illinois FarmBureau tent on SeventhStreet. IFB will package themagazines and send them toAfghanistan.

The FFA chapter thatbrings the most magazineswill receive an iPad.

For more information,contact Mariah Dale-Ander-son, IFB manager of specialservices, at 309-557-2350.

from the counties

FORD-IROQUOIS —Farm Bureau and

Alliance Grain will sponsor acommodity price outlookmeeting at 8 a.m. Thursday atRailside Golf Club, GibsonCity. Aaron Curtis, MID-CO,will be the speaker. Call theFarm Bureau office for moreinformation.

• A policy developmentmeeting will be at 6:30 a.m.Monday, Aug. 22, at the FarmBureau office, Gilman. AdamNielsen, Illinois Farm Bureaudirector of national legislationand policy development, willbe the speaker. Call the FarmBureau office at 800-424-0756or e-mail fifb@sbcglobal.netfor reservations or more infor-mation.

• Farm Bureau and LudlowCo-op will sponsor an outlookmeeting at 8 a.m. Monday,Aug. 29, at the Farm Bureauoffice, Gilman. Graham Utterand Joe Grider, AgriVisor, willbe the speakers. Call the FarmBureau office for more infor-mation.

HAMILTON — AViewpoint meeting

will be at 6 p.m. Monday, Aug.22, at the Dale ConventionCenter. Liz Hobart, IllinoisFarm Bureau associate direc-tor of national legislation andpolicy development, will bethe speaker. A fried fish din-ner will be served. Call theFarm Bureau office by Thurs-day for reservations or moreinformation.

• Hamilton and JeffersonCounty Farm Bureaus willsponsor a bus trip Wednesday,Aug. 31, to the Farm ProgressShow, Decatur. Cost is $30,which includes bus, entranceto the show, and a buffet mealon the return trip. Reserva-tions are on a first-come, first-served basis. Members fromneighboring counties may signup and be placed on a waitinglist. Call the Farm Bureauoffice at 618-643-2347 forreservations or more informa-tion.

HANCOCK — TheYoung Leader Com-

mittee will sponsor a team toparticipate in the Agri-QuizBowl Tuesday at the IllinoisState Fair, Springfield.

HENRY — Localcounty Farm Bureaus

will sponsor two “On theRoad” seminars Monday, Aug.22. The first will be from 10a.m. to noon at the ReynoldsAmerican Legion, Reynolds,and the second from 3 to 5p.m. at the Prophet HillsCountry Club, Prophetstown.Kevin Rund, Illinois FarmBureau senior director of localgovernment, will be the speak-er. Topics will include motorcarrier safety regulations, uni-fied carrier registration, andU.S. Department of Trans-portation number registra-

more information.• Farm Bureau will spon-

sor a bus trip Wednesday,Aug. 31, to the FarmProgress Show, Decatur. Thebus will leave the FarmBureau office at 6:30 a.m.Cost is $25. Call the FarmBureau office at 686-7070 forreservations or more infor-mation.

• Deadline to submit pic-tures for the photo contest isSept. 1. Members shouldplace their name on the backof each picture. Cash awardswill given for first, second,and third place in three cate-gories, along with Best ofShow award.

ROCK ISLAND —Local county Farm

Bureaus will sponsor two“On the Road” seminarsMonday, Aug. 22. The firstwill be from 10 a.m. to noonat the Reynolds AmericanLegion, Reynolds, and thesecond from 3 to 5 p.m. atthe Prophet Hills CountryClub, Prophetstown. KevinRund, Illinois Farm Bureausenior director of local gov-ernment, will be the speaker.Topics will include motorcarrier safety regulations, uni-

fied carrier registration, andU.S. Department of Trans-portation number registra-tions. Call the Farm Bureauoffice at 309-736-7432 forreservations or more informa-tion.

STARK — Farm Bureauwill sponsor a blood

drive from noon to 6 p.m.Wednesday at the ToulonCongregational Church. Call800-448-3543 for an appoint-ment. Walk-ins are welcome.

WHITESIDE — FarmBureau will sponsor

an “On the Road” seminarfrom 3 to 5 p.m. Monday, Aug.22, at Prophet Hills CountryClub, Prophetstown. Topicsinclude motor carrier safetyregulations, unified carrier reg-istration, and U.S. Departmentof Transportation numberregistrations. Call the FarmBureau office at 815-772-2165or visit the website{www.whitesidecfb.org} forreservations or more informa-tion.

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

tions. Call the Farm Bureauoffice at 309-937-2411 forreservations or more informa-tion.

• The Farm Bureau officewill host the Young Leadersdistrict discussion meet at 10a.m. Wednesday, Aug. 24.

JEFFERSON — AViewpoint meeting will

be at 7 p.m. Tuesday, Aug. 23,at the Farm Bureau office. LizHobart, Illinois Farm Bureauassociate director of nationallegislation and policy develop-ment, will be the speaker.Dinner will be served. Call theFarm Bureau office at 618-242-7069 by Thursday forreservations or more informa-tion.

• Hamilton and JeffersonCounty Farm Bureaus willsponsor a bus trip Wednesday,Aug. 31, to the Farm ProgressShow, Decatur. Cost is $30,which includes bus, entranceto the show, and a buffet mealon the return trip. Reserva-tions are on a first-come, first-served basis. Members fromneighboring counties may signup and be placed on a waitinglist. Call the Farm Bureauoffice at 618-242-7069 forreservations or more informa-tion.

LASALLE — LaSalle,Grundy, Kendall, and

Will County Farm Bureaus willsponsor a bus trip Tuesday,Aug. 30, to the Farm ProgressShow, Decatur. Cost is $40.Call the Farm Bureau office at815-433-0371 or the KendallCounty Farm Bureau at 630-553-7403 for more informa-tion.

LEE — The Lee CountyFarm Bureau Founda-

tion will sponsor a raffle withfive $100 prizes and one$1,000 grand prize. Ticketsare $10 each. The winner willbe selected at the Lee CountyFarm Bureau annual meetingat 10 a.m. Thursday, Jan. 19.All proceeds will help fund theag literacy programs. Ticketsare available at the FarmBureau office or from a boardof director. Call the FarmBureau office at 815-857-3531or e-mail leecfb@comcast.netfor more information.

MCDONOUGH —The annual McDo-

nough County Farm BureauFoundation golf outing will bean 8 a.m. shotgun start Satur-day at Gold Hills, Macomb.Cost is $50 each or $200 perteam. Proceeds will benefit theAg in the Classroom program.Call the Farm Bureau officefor more information.

MERCER — Henry,Mercer, and Rock

Island County Farm Bureauswill sponsor an “On theRoad” seminar from 10 a.m. tonoon, Monday, Aug. 22, at theReynolds Legion Hall. Coffeeand donuts will be served.

Kevin Rund, Illinois FarmBureau senior director of localgovernment, will be the speak-er. Call the Farm Bureauoffice at 309-582-5116 forreservations or more informa-tion.

• Farm Bureau and MercerCounty Hospital will sponsora grain rescue training seminarfrom 8 a.m. to 3 p.m. Sunday,Aug. 28, at the Farm Bureauoffice. Firefighters, emer-gency medical services person-nel, and police are invited.Lunch will be served. Call theFarm Bureau office at 309-582-5116 by Monday, Aug. 22,for reservations or more infor-mation.

PEORIA — The Grass-roots picnic will be at 6

p.m. Tuesday, Aug. 23, at theFarm Bureau park. A porkloin dinner will be served.Call the Farm Bureau office at686-7070 for reservations ormore information.

• Farm Bureau will sponsora bus trip Friday, Aug. 26, tothe Half Century of ProgressShow, Rantoul. The bus willleave the Farm Bureau officeat 6:30 a.m. Cost is $25. Callthe Farm Bureau office at686-7070 for reservations or

Page 11 Monday, August 15, 2011 FarmWeek

FB IN ACTION

FarmWeek Page 12 Monday, August 15, 2011

BARE BONES ISSUES

State Rep. David Harris, left, (R-Arlington Heights) chats with Kendall County Farm Bureau board memberBob Stewart, center, and Kendall County Farm Bureau manager Dan Reedy during a tour Harris hostedfor his “adopted” county Farm Bureau. The jam-packed day included a walking tour of downtown Arling-ton Heights and a discussion of local business issues with Jon Ridler, executive director of the ArlingtonHeights Chamber of Commerce. The group also toured the Arlington Park Racetrack and discussed chal-lenges of the horseracing industry with a race horse owner. The district tour included stops at the ArlingtonHeights Library and a community theater. The Farm Bureau visitors also included Kendall County Farm Bu-reau President Wes Morris, county Farm Bureau Treasurer Bill Wykes, and Cook County Farm Bureaumember Kim Morton and Cook County Farm Bureau public policy director Bona Heinsohn. RepresentativeHarris is planning a harvest tour and combine ride in Kendall County this fall. (Photo by Christina Nourie,Illinois Farm Bureau northeast legislative coordinator)

GETTING ACQUAINTED

Jo Daviess County Farm Bureau board members Ronald Lee Lawfer, left, and Kyle Embry, right, chat with stateRep. Carol Sente (D-Vernon Hills) during a recent tour of her legislative district by 15 members of the Jo Daviess,Cook, and Lake County Farm Bureaus. Sente recently was “adopted” by the Jo Daviess County Farm Bureau anddiscussed her district and legislative priorities with her Farm Bureau constituents as well as the visitors. Shesought their views on high-fructose corn syrup and other nutritional issues. The group toured the 4,200-studentStevenson High School in Lincolnshire and the newly opened Korean Cultural Center of Chicagoland. The farm-ers learned about Korean immigration and discussed Korean agricultural and education systems. The group alsotasted traditional Korean foods. The representative said she hopes to tour Jo Daviess County after the fall vetosession. (Photo by Christina Nourie, Illinois Farm Bureau northeast legislative coordinator)

Illinois farmersoffer free groceries Members of the Livingston County Farm Bureau Marketing andYoung Leaders Committee recently kicked off the “Farmers Feed Us”campaign with a ribbon-cutting at Pontiac County Market.

Young Leader member Jenna Kilgus, Kilgus Farmstead, gave outsamples of milk products produced on her family farm.

Children were given “stress” cows that had the message, “Regis-ter to win $5,000 worth ofgroceries at {www.Farm-ersFeedUS.org}.”

Illinois residents mayregister for two grandprizes of free groceriescourtesy of Illinois Farm Families at that website.

Illinois Farm Families, a united effort to create new conversa-tions and connections with consumers, is sponsored by IllinoisSoybean Association, Illinois Beef Association, Illinois Corn Mar-keting Board, Illinois Farm Bureau, and Illinois Pork ProducersAssociation.

On the local level, the Livingston County Farm Bureau MarketingCommittee is also offering free groceries. Grocery stores in Liv-ingston County have entry forms for a chance to win one of three$25 gift certificates.

One winner in August, September, and October will be drawn atthe following stores: County Market, Pontiac; Dave’s Super Market,Fairbury; Berkot’s, Dwight; Jamie’s, Forrest; Odell Food Mart, Odell;Cullom Community Market, Cullom; and Art’s Food Center,Chatsworth.

Farm mother Emily Webel of Farmington, seated at center with son,Jack, talks with urban moms who were participants at a Moms Meet-Upevent last week in Chicago The event was part of the Illinois Farm Fam-ilies effort to facilitate conversations between consumers and farmers.About 40 Chicago-area moms attended. In all, four Illinois farm womenmet with the group and answered questions about food production andfamily farming operations in the state. (Photo by Lori Laughlin)

Outlook for U.S. ag exports is bright — for nowBY DANIEL GRANTFarmWeek

USDA recently projectedU.S. ag exports this year willswell to a record-high $137 bil-lion.

The rise in ag exports is dueto a combination of increaseddemand and higher commodityprices, according to SarahelenThompson, director of theUSDA Economic Research Ser-vice’s Market and Trade Eco-nomics Division.

“World economic growthhas been good for ag commodi-ties’ demand, particularly indeveloping economies,”

er, that growth in ag exportscould be limited if the U.S. failsto enact free trade agreements(FTAs) in a timely manner.

The U.S. still has not ratifiedtrade agreements with SouthKorea, Colombia, and Panamathat could be worth an addition-al $2.5 billion per year to Ameri-can agriculture.

“Our hope was the FTA(with South Korea) would bedone” prior to Congress’ Augustrecess, Garza said.

Now the timeline for FTAs isuncertain as budget issues andthe deficit have “paralyzed Con-gress,” said Pat Wolff, directorof tax and rural development atAFBF.

Garza noted the U.S. in the

past two years already has lost anestimated $1 billion in agexports due to the lack of FTAs.

“We’ve lost market share,”Garza said. “It’s no longer aboutgaining U.S. ag exports. It’sabout preventing further losses.”

Thompson reported therecurrently are about 300 FTAsbetween various countriesaround the world. Since the lastFTA ratified in the U.S., withPeru in 2009, other countrieshave implemented 27 additionaltrade agreements that do notinvolve the U.S.

“If we don’t get these FTAsdone, we could lose additionalmarket share,” Garza added.“That potentially will be danger-ous for us” in agriculture.

Thompson last week told par-ticipants of the Illinois FarmBureau Marketers to Washing-ton trip during a meeting atUSDA headquarters.

USDA predicted the trend ofincreased ag exports and a largertrade surplus of farm productswill continue for at least thenext 10 years.

The prediction was based onstrong developing economies,further depreciation of the dol-lar, and commodity prices thatwere projected to remain abovehistorical averages.

“Long-term, we project(commodity) prices will remain

above historic averages andexports and the trade surpluswill continue to grow,” Thomp-son said.

The Obama administrationlast year unveiled its goal ofdoubling U.S. exports in thenext five years.

That obviously would begood news for U.S. farmers,who currently earn about 25percent of their gross incomefrom export sales, according toChris Garza, director of con-gressional relations for theAmerican Farm Bureau Federa-tion (AFBF).

AFBF is concerned, howev-

Page 13 Monday, August 15, 2011 FarmWeek

profitability

FarmWeek Page 14 Monday, August 15, 2011

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $11.50-$48.39 $33.0040 lbs. $37.00 $37.0050 lbs. n/a n/aReceipts This Week Last Week 26,971 20,571*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 $101.40 $100.36 1.04Live $75.04 $74.27 0.77

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn8-04-11 5.6 25.2 31.77-28-11 6.0 16.2 32.5Last year 7.4 14.9 44.8Season total 1452.6 209.4 1659.4Previous season total 1412.8 165.9 1734.4USDA projected total 1540 1295 1900Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 116.02 110.09 5.93Heifers 116.03 111.00 5.03

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 134.67 135.05 -0.38

CME feeder cattle index — 600-800 Lbs.

Lamb prices

Slaughter Prices - Negotiated, Live, wooled and shorn 120-180 lbs. for 175.50-220$/cwt. (wtd. ave. 189.56); dressed, no sales reported.

Natural gas: Is it the fuel of the future?BY CHARLIE LABELLE

“We are absolutely crazy ifwe don’t use this fuel; it’s

cleaner, it’scheaper, it’sabundant, andit’s ours,” T.Boone Pick-ens said.

What fuelis Pickensreferring to?Natural gas.Nearly 100

percent of the natural gasused in the U.S. is produced inNorth America.

“In the last few years,we’ve discovered the equiv-alent of two Saudi Arabiasof oil in the form of natu-ral gas in the United States.Not one, but two,” saidAubrey McClendon, Chesa-peake Energy CEO, duringa “60 Minutes” interview.Natural gas production inthe U.S. is expected to con-

chief component of naturalgas, tends to warm theatmosphere, some studiessuggest. Also, the methodused to extract natural gas,called “fracking,” has beensuspect for environmentaldamage.

Large amounts of pressur-ized water, a proppant (usually

sand), and very smallamounts of chemicals areforced down the wellbore tocreate tiny fissures in the rockso the oil and gas can flow tothe surface.

The safe utilization of thechemicals on the surface iskey to preventing drinkingwater contamination. Envi-ronmental Protection Agencystudies have shown that thefracking process, thousandsof feet below the earth sur-face, does not contaminatedrinking water.

Many large corporations,including Shell Oil, Exxon-Mobil, and General Motorsare working toward the use ofnatural gas as transportationfuel, moving us closer toenergy independence.

Charlie LaBelle is GROW-MARK’s senior energy analyst.His e-mail address isclabelle@growmark.com.

tinue to grow (see graph).If the supply is so abun-

dant, what will it take for theU.S. to gain independencefrom foreign oil?

A congressional bill,dubbed the Nat Gas Act,would provide tax credits ofas much as $64,000 for thepurchase of natural gas long-haul trucks, and lesseramounts for lighter vehicles.Pickens started a company toput natural gas pumpsinto truck stops across thecountry. The plan is to ulti-mately build 150 stations alonginterstate highways to providenatural gas, as well as putpumps into existing truckstops.

Natural gas vehicles (NGV)can be built from scratch orcreated by modifying conven-tional gasoline vehicles. Abrand-new natural gas vehiclecosts $4,000 to $8,000 morethan a comparable gasoline

vehicle, while modificationstypically cost $3,000 to $5,000.Vehicles that run solely onnatural gas are known as dedi-cated NGVs. Vehicles that canoperate on both natural gasand gasoline are bifuel vehi-cles.

However, there are somedrawbacks. Methane, the

Charlie LaBelle

Soaring land values confined mostly to Corn BeltBY DANIEL GRANTFarmWeek

A large run-up in farm-land prices has been all thetalk in Illinois and the Mid-west in recent years.

The average value ofcropland statewide from2009 to 2011 increased by

year increased 6.8 percentto an average of $2,350 peracre, according to theUSDA report.

Walsten believes croplandvalues will continue to rise aslong as crop prices and farm

returns remain strong.“I see a correction com-

ing,” he said. “But I’m stilllong-term bullish.”

The full land valuesreport can be viewed onlineat {www.nass.usda.gov}.

more than $1,000 per acre. This year’s average priceof cropland in Illinois,$5,800 per acre, is up 18.4percent from a year ago,according to USDA’s ag landvalues annual report releasedearlier this month.

The trend is the same in

the rest of the Corn Belt,where the average value ofcropland the past threeyears has increased from$3,910 per acre in 2009 and$4,240 in 2010 on up to$4,920 per acre this year.

“The bulls are loose,”said Mike Walsten of theLandowner Newsletter. “It’sprimarily a Corn Beltthing.”

Walsten said thestrongest demand and high-est prices for farmland arefor high-quality land capa-ble of producing good cornyields.

“The demand for cornground, bottom line, is thegross per acre,” he said.Demand for top qualityland “is being driven byfarmers, with cash in theirpockets, who want toexpand.”

The same cannot be saidin other regions of thecountry. In fact, croplandvalues in 2011 declined 1.3percent in the Northeastand 1.1 percent in theSoutheast.

Elsewhere, cropland val-ues in the past year postedmore modest gains of 1.4percent in the Pacificregion, 6.3 percent in theSouthern Plains, and 6.8percent in the Delta region.

Overall, U.S. croplandvalues this year increasedfrom $260 per acre (9.4 per-cent) to $3,030 per acre.

The average farm realestate value, a measurementof the value of all land andbuildings on farms, this

PROFITABILITY

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CASH STRATEGISTCorn Strategy

ü2010 crop: Wrap up old-crop sales on strength. Endingstocks may grow slightly fromthe latest USDA forecast.

ü2011 crop: USDA esti-mates were positive enough tolift December corn futures closeto the $7.23 contract high. Withweather and outside marketinfluences having become a littlenegative, it may be difficult toovercome that, or sustain gainsif it does. Long-term technicalindicators are overdone, leavingthe market vulnerable to turnlower. If you are comfortablewith production prospects,boost sales to 60 percent,preferably with a hedge-to-arrive contract for winter/springdelivery.

vFundamentals: TheUSDA August crop estimatewas a little lower than expected.But upside potential may havebeen countered by an equallysharp reduction in demandpotential. Large world wheatsupplies may be as much of ahindrance as early-season highprices over the next few months.

Soybean Strategyü2010 crop: The inability to

sustain gains and the relativelyhigh price are reasons enough towrap up old-crop sales.

ü2011 crop: Novemberfutures might have held supportthrough the tumultuous finan-cial market activity, but they alsowere unable to get back through$13.50. If you are comfortablewith yield prospects, usestrength to get sales up to ourrecommendation.

vFundamentals: The pro-duction estimate in the Augustcrop report may have come inunder expectations, but wascountered by demand erosion.And if cool, damp weather wereto prevail at the end of thegrowing season, soybean outputcould increase from the Augustestimate. The persistence ofhigh prices into late summerensure big plantings in SouthAmerica again this year as well.Already, their big spring cropsare allowing large supplies to becarried into our new crop year,potentially subduing our exportdemand from the outset.

Wheat Strategyü2011 crop: Wheat rallied

on spillover support from corn

and its friendly USDA report.Chicago December futuresstruggle to hold gains when theynear $7.50. You should havepriced another 10 percent lastweek when Chicago Septemberfutures slipped under support.Use current strength to makecatch up sales. If you need tomove wheat out of storagebefore fall harvest, either get itpriced or arrange for commer-cial storage. The carry infutures more than pays for com-mercial storage. Because of thecarry, we prefer HTA contracts

for winter or spring delivery forsales.

vFundamentals: In itsAugust report, USDA indicatedthe 2011 U.S. wheat production,2.077 billion bushels, will be thesmallest in four years. The slightreduction came from smallerspring and durum wheat esti-mates. Maybe just as importantwas the forecast for a 10 millionmetric ton (mmt.) increase inworld supplies and a 6 mmt.increase in ending stocks, point-ing to a more competitive worldmarket.

be starting unusually low, evenfor corn. But given the July heatstress, there’s a reasonable argu-ment the 153 bushel August esti-mate for corn was an appropri-ate place to begin.

In 1995, a year with similarheat during pollination, the finalyield was 8 1/2 percent undertrend. But like last year, USDAstarted with a relatively opti-mistic estimate. Hence we didn’tuse it for comparative purposes.

Soybeans are a more difficultcall as this month’s weather willhave implications for the finalyield. But drought issues acrossthe South and slow plantings inthe Corn Belt still can cut intopotential and the final yield.Other than true “drought years,”though, soybean yields don’t fallmuch more than 7-8 percentbelow trend, not far belowwhere the USDA forecast them.

While end-of-season weatheris still unknown, unless it’s reallypoor, downside risk for corn andsoybean yields may not be thatlarge because of the levels atwhich USDA started.

Unlike last year, the initialyields for corn and soybeans thisyear are at a relatively low point— 153 bushels per acre for cornand 41.4 bushels for soybeans.Last year, USDA started withwhat many felt were high num-bers — 165 bushels for corn and44 bushels for soybeans. Thecorn number looked especiallyhigh even before late-summerweather cut yields more.

We have looked at historicalyields relative to trend to put all ofthe years we looked at on equalfooting. The three individualyears — 1997, 1999, and 2007 —were chosen because the pattern ofthe crop condition ratings throughthe growing season up to this pointhad similar paths as this year.

At first glance, this year’s ini-tial estimates look like they may

Cents per bu.

Yields start at a low point

Page 15 Monday, August 15, 2011 FarmWeek

perspectives

FarmWeek Page 16 Monday, August 15, 2011

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FarmWeek Letters1701 Towanda Ave.

Bloomington, Ill., 61701

If you’ve been farming very long, andeven if you haven’t, you know that weedshave a way of “figuring things out.”

They somehow reinvent themselves to becomeresistant to whatever is beingforced upon them. Drought.Herbicides. Flooding. Cultiva-tion. Weeds survive.

What does that scenario haveto do with USDA Rural Devel-opment?

The analogy itself has verylittle to do with Rural Develop-ment. But it has everything todo with all of us who live inrural America.

Rural America now accounts for a mere 16percent of the nation’s population — the lowestever. Yet we feed the world. And despite ourdecreasing numbers, we have an increasing rolein our nation’s energy independence.

Unfortunately, our contribution to energyself-sufficiency notwithstanding, the recent cen-sus indicates we are becoming more and moreirrelevant.

I bet you don’t like hearing that, do you? Noone wants to be considered immaterial, especial-ly when we’ve long known that we are the foun-dation of our country and its economy.

A recent article that appeared in “IllinoisTimes” entitled “Devoid of Life” says: “RuralIllinois has been hemorrhaging people since the1860s or so. That’s when young people in par-ticular started leaving for cities where they couldfind work.

“What happens when the number of peoplethat the Illinois countryside can economicallysustain drops below the number needed to gov-

ern the institutions that moderntowns need to sustain themselves?” Hence, if there is strength in num-

bers, and we are on a documenteddecline, what do we do? What are our

options?Maybe we need to start “think-

ing” like a weed. Weeds seem tosubscribe to the survival of the fittest

theory; they thrive in adverse conditions.So how can we, as rural Americans, be

innovative, create confidence in the marketplaceand thrive like weeds? We must adapt and playto our strengths!

Did you know that the cover story on theNov. 15, 2010, issue of “Newsweek” featured“How the Heartland Could Lead America Outof the Recession”? (A non-farm magazinebelieves in us!)

Did you know that Walmart, SuperValu, Safe-way, and Kroger are expanding the amount oflocally grown food they offer, saying that buyinglocally means savings, but that the main objec-tive is to satisfy changing consumer prefer-ences?

Did you know that a new report commis-sioned by Paris-based (as in France) RenewableEnergy Policy Network for the 21st Centuryshows that the renewable energy sector contin-ues to perform well despite the continuing eco-nomic recession?

And that renewable energy supplied about 16percent of global final energy consumption andaccounted for nearly 20 percent of global elec-tricity production?

Or that when you include large and smallhydropower, renewable energy accounted forapproximately 50 percent of total new power-generating capacity in 2010?

Hmm. We live in the Heartland. We have thecapability to grow local food and renewablesources of energy. That means potential newmarkets, new businesses, new jobs, and maybepeople returning to or relocating in rural areas— new, younger people to assist in decision-making for our communities. Might we have todo things differently to meet current needs andexpectations?

As the old adage says, “It’s not the strongestspecies that survives ... it is the one able toadapt, adopt, and accept change.” And RuralDevelopment will be there to support thechanges through available financing and thenewly established Rural Council whose coreobjective is job creation and economic growthin Rural America. If weeds can do it, so canwe!

Colleen Callahan is the director of USDA RuralDevelopment in Illinois. Her e-mail address isColleen.Callahan@il.usda.gov.

COLLEENCALLAHAN

If weeds can do it,so can we

Learning opportunitiesare plentiful at the fair

The State Fair means different things to different people.Some might be interested in seeing the musical groups or

perhaps eating a deep-fried Snickers. Truly there is enoughvariety to keep a smile on one’s face all day, regardless of thetemperature.

The State Fair also provides an opportunity to show the restof Illinois how well something is done.

There are contests to determine the bestmarching band, the best decorated diaper con-test, the best dog photo, and the longest pony-tail, among many others. But to me, the StateFair is about the livestock judging contests.

If you are interested in seeing pigs, cattle,sheep, poultry, horses, mules, rabbits, llamas, orgoats, each has its own judging competition.

While there are many different divisions andclasses for each type of livestock, a constant isthe youngsters who show their livestock at thefair.

For them, the State Fair is the Final Four, Super Bowl, andWorld Series combined. At the fair they are not working withtheir livestock in the early morning quiet, alone, on their farm.They are surrounded by other young people — male andfemale — who share the same interest and passion for high-quality livestock. What often is a solitary endeavor at homebecomes, during the State Fair, a very public effort.

As the young contestants arrive at the fairgrounds, they areassigned areas to put their animals; they have the opportunityto see who is nearby, to renew old acquaintances, and to learnwho has done well, or not, in local competitions.

They also might learn new grooming techniques or ways tokeep their livestock calm in the face of large crowds of curiouspeople. If you get a chance, ask some of the young men andwomen about their livestock. Their knowledge and enthusiasmwill surprise and delight you.

The reason the livestock and their owners come to the faireventually arises — the official judging. This is where surpriseshappen.

An animal that has won every contest suddenly receives afifth place. Why? Perhaps the hot weather has harmed its abili-ty to eat properly or the judge saw something that other judgesmissed.

On the lighter side, if the drama of the formal judging isnot to your liking, you could take in the llama obstacle contest,where “rapport, mutual confidence, and trust between handlerand llama” is judged. But the livestock competition at the StateFair, in my view, is as much about the young people showingtheir skills as it is the livestock.

William Bailey is chairman of the Department of Agriculture at West-ern Illinois University, Macomb. His e-mail address is WC-Bailey@wiu.edu.

WILLIAMBAILEY

This was what he had become, a walkingstereotype: A Bull in a China Shop.