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

Freshman u.s. rep. Rod-ney Davis has formed a MississippiRiver Valley caucus to addressissues along the river. .....................8

hog production costshave eaten into profits in recentyears, but a reduction in feed costsis being projected. ........................5

Farmers haVe an extend-ed deadline for filing taxes this year,but a tax specialist suggests theyfile as they have in the past. ...........4

Monday, February 11, 2013 Two sections Volume 41, No. 6

Quinn delivers toughchallenges for lawmakersBY KAY SHIPMANFarmWeek

Gov. Pat Quinn challenged state lawmakers with a lengthyto-do list last week in his State of the State address.

Speaking to members of both chambers,the governor urged action on “the toughest ofissues” — reforming the state pension systemthat has a $97-billion unfunded liability, theworst in the nation.

“We cannot allow our economic recovery tobe held hostage by the pension crisis. We sim-ply must act,” Quinn said.

He praised Senate President John Cullerton(D-Chicago) for his legislative proposal andHouse Republican Leader Tom Cross (R-

Oswego) and Rep. Elaine Nekritz (D-Northbrook) for theirbipartisan efforts.

In addition to pension reform, the state’s chief executivelobbed several other tough issues at the General Assembly.

He urged legislators to raise the state’s minimum hourlywage from $8.25 to $10 over the next four years. “Nobody inIllinois should work 40 hours a week and live in poverty,”Quinn said.

The governor raised the issue of gun violence and pressedlegislators to ban the sale of assault weapons and high-capacityammunition magazines in the state.

“We must abide with the Second Amendment, but there isno place in our state for military-style weapons designed forrapid fire at human targets at close range,” Quinn said.

The state would be safer with stronger background checksfor firearm owners and required reporting of lost or stolenguns, the governor claimed. He also supported legislationrequiring every school to practice safety drills.

Looking ahead to the next election, Quinn called for openprimaries that would not require voters to publicly declare theirparty affiliation and for online voter registration. “We mustmove our election process into the 21st century,” he said.

The governor admitted lawmakers will need politicalcourage “to do the right thing.”

“With courage, hard is not impossible,” he concluded.

Gov. Pat Quinn

Vilsack: Farm bill ‘imperative,’ failure costlyBY MARTIN ROSSFarmWeek

Passage of a 2013 farm billis “imperative” and thepotential public cost of con-gressional failure is extreme,Ag Secretary Tom Vilsackadvised last week.

Senate Majority LeaderHarry Reid’s (D-Nev.) recentreintroduction of the Senate’s2012 farm bill package sig-naled farm bill resolution is“a Senate priority,” Vilsacksaid following his keynoteaddress at last week’s Nation-al Ethanol Conference in LasVegas.

Reid’s support reflectsSenate Ag Committee Chair-man Debbie Stabenow’s (D-Mich.) efforts in “encourag-ing her colleagues to under-stand the importance of afood, farm, and jobs bill,” hemaintained.

“There’s probably stillsome work to be done on thebill, because you now have adifferent ranking (Ag Com-mittee) member in Sen.(Thad) Cochran (R-Miss.),”Vilsack told FarmWeek. “Hemay have slightly differentviews on the structures thatsupport farmers, comingfrom the South and given thecrops raised there.

board budget sequestration(cuts) — slated for March,barring a congressionaldeficit-reduction compromise— would make it difficult totake savings from direct pay-ment elimination and “plowthat into a new (safety net)system,” he said.

Further, he noted sequestercuts would force a temporaryfurlough for USDA food safe-ty personnel and thus a short-term shutdown of federallyinspected meat plants. That

means “billions and billionsof dollars’ impact on the mar-ket,” Vilsack warned.

He advocates a “strong”farm bill energy title as a keycomponent in efforts to“rebuild the rural economy.”Other linchpins in ruralrecovery include ag produc-tion and exports, conservationprograms linked to recreation,local and regional food sys-tems, he said.

“All that has to be in afarm bill,” Vilsack said.

“But I believe he’s interest-ed in working out those dif-ferences and getting some-thing done quickly. And Ithink the House Ag Commit-tee has the same motivation toget something done.”

Concerns about high milkprices (should the impassecause a reversion to 1949 law)reportedly motivated lawmak-ers to extend 2008 farm billprovisions through Septem-ber, and Vilsack urged Con-gress to “figure out some-thing creatively on dairy (poli-cy).”

The Senate proposes a newdairy margin protection planaimed at addressing high feed

costs and dairy price volatility. However, Vilsack warned a

shrinking federal budget base-line for dairy programs willmake it difficult to find “thatsweet spot where both (HouseAg Committee RankingDemocrat) Collin Peterson(D-Minn.) and (House Speak-er) John Boehner (R-Ohio)are happy.”

Vilsack stressed the eco-nomic implications of timelyfarm bill passage. Across-the-

Renewable Fuels Association President Bob Dinneen, left, acknowledgesAg Secretary Tom Vilsack’s support for biofuels development at lastweek’s National Ethanol Conference in Las Vegas. (Photo by MartinRoss)

FarmWeekNow.comAg Secretary Tom Vilsack sayspassage of a 2013 farm bill isimperative. For more details,go to FarmWeekNow.com.

BUSTOS BUDGET BILL — East Moline DemocratU.S. Rep. Cheri Bustos has introduced her first bill, oneaimed at targeting budgetary waste “while preserving cru-cial services and programs.”

Congress is gearing up for potentially severe spendingcuts under a required budget “sequestration” process. Bus-tos’ bill would create an Independent Government WasteReduction Board to develop detailed proposals related to2011 Government Accountability Office (GAO) recom-mendations.

“This represents a good first step toward getting ourcountry back on sound fiscal footing without hurting ourmiddle class,” Bustos said.

For example, the federal government has 47 job trainingprograms, 44 of which overlap. She said simply consoli-dating programs could save tens of billions of dollarswhile preserving program quality.

Bustos’ board would include 15 congressional members,six each picked on a bipartisan basis by the House andSenate

BIOTECH REALITIES — Ag Secretary Tom Vil-sack has been out on the conference circuit stumping forfarm bill passage and biofuels growth. But he also hassome strong words for European interests that challengeag biotechnology.

At last week’s National Ethanol Conference, Vilsackargued European Union leaders must be “far more opento this new science.”

“They have to understand that there aren’t the risksto (biotech crops and foods) that a lot of people thinkthere are — the science just does not support that,” hetold FarmWeek.

“We have to embrace these new technologies. Other-wise, the challenge of feeding 8, 9, 10 billion is going tovery daunting.”

VALENTINE FLOWER PESTS — Valentine flow-ers may harbor more than sentiments. Each year, ag spe-cialists with the U.S. Customs and Border Protection(CBP) inspect millions of imported cut flowers for pestsand diseases.

During the Valentine season (Jan. 1 to Feb. 14, 2012),the CBP nationwide processed 842.2 million cut flowers.Most of the shipments came from South America, prima-rily Colombia.

Ag pests and diseases capable of destroying U.S. cropsor forests include the Emerald ash borer, the Asian long-horned beetle, citrus canker, and the Khapra beetle. Themost common insects intercepted in imported cut flowersare mites, aphids, and moths.

Last year, the CBP in Chicago inspected 6.2 millionimported flowers.

FarmWeek Page 2 Monday, February 11, 2013

(ISSN0197-6680)

Vol. 41 No. 6 February 11, 2013

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

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

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

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

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

© 2013 Illinois Agricultural Association

STAFFEditorDave McClelland (dmcclelland@ilfb.org)

Legislative Affairs EditorKay Shipman (kayship@ilfb.org)

Agricultural Affairs EditorMartin Ross (mross@ilfb.org)

Senior Commodities EditorDaniel Grant (dgrant@ilfb.org)

Editorial AssistantMargie Fraley (mfraley@ilfb.org)

Business Production ManagerBob Standard (bstandard@ilfb.org)

Advertising Sales ManagerRichard Verdery (rverdery@ilfb.org)Classified sales coordinatorNan Fannin (nfannin@ilfb.org)

Director of News and CommunicationsMichael L. Orso

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

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Editorial phone number: 309-557-2239Classified advertising: 309-557-3155Display advertising: 1-800-676-2353

Quick TakesSTATE

Legislature passes, Quinn signs supplemental spending billBY KAY SHIPMANFarmWeek

Gov. Pat Quinn last week signed legisla-tion that allows the state to spend an addi-tional $603 million in general revenuefunds and $1.5 billion in other state funds.

The House passed the measure on a63-52 vote, while the Senate voted38 to 15 in favor of the bill.

Included in the measure wasan additional $675 million forroad construction projects inanticipation of the statereceiving new federal funds,according to Kevin Semlow,Illinois Farm Bureau directorof state legislation.

“This important measure

will allow us to begin construction projects thisspring, putting Illinois workers back on thejob repairing bridges and improving roads,”the governor said.

Quinn noted the bill also restoredfunding to the Department of Children

and Family Services for child-welfareservices. The funding will “protect

the most vulnerable among us,” headded.

In other action, the SenateExecutive Committee forwardedsame-sex marriage legislation tothe full Senate after lengthy

debate. IFB opposes SB 10.The bill may be called for a

vote on the Senate floor thisweek.

Illinois’ national agriculturespokesman, Katie Pratt of

Dixon, dis-cussed foodand ag termi-nology Fridayduring mediainterviews inNew York City(NYC).

One offour Faces ofFarming and

Ranching with the U.S. Farmers& Ranchers Alliance, Pratt was

joined by the Food Network’sChef Danny Boome. Thismarked Pratt’s first experiencewith media interviews conduct-ed via satellite, she toldFarmWeek.

Pratt and Boome sought todemystify such food terms asorganic, grass-fed, and naturallyraised.

Since being named a nationalspokesman, Pratt said she hasbeen interviewed by many Mid-west-based reporters, primarilyin her home state.

Pratt and Boome also con-ducted a series of radio inter-views on the USDA Radio Net-work, It’s Your Health NationalNetwork, and KTRS in St.Louis, Mo.

As their mother has beengreeted and congratulated bymany in their community, Ethan7, and Natalie 5, are realizingtheir mom has become wellknown.

“Mommy, I think you mightbe famous,” Natalie recently toldher mother. — Kay Shipman

Katie Pratt

Pratt, chef take NYC media tour

Feb. 12IFB Crop Insurance and TruckingRegulations seminar, 8 a.m., ParklandCollege Tony Noel Center, Champaign.To register go to {ilfb.org/regionalsemi-nars} at least three days prior to theevent. For more information, email jhar-rison@ilfb.org or call 309-557-3207.

Feb. 14-15 Rural first responders security training,8 a.m. to 5 p.m., WorkforceDevelopment Center, Normal.Registration deadline Feb. 4. ContactKeith Gehrand at 309-268-8454 orkeith.gehrand@heartland.edu.

Feb. 15IFB Crop Insurance and TruckingRegulations seminars, 8 a.m., DanvilleArea Community College, Danville, and1 p.m., Evergreen FS, Bloomington. Toregister go to {ilfb.org/regionalsemi-nars} at least three days prior to theevent. For more information, email jhar-rison@ilfb.org or call 309-557-3207.

Feb. 20-21Illinois Farm Bureau GovernmentalAffairs Leadership Conference, CrownePlaza Hotel, Springfield.

Feb. 25IFB Crop Insurance and TruckRegulations seminars, 8 a.m., LincolnLand Community College’s TrutterCenter, Springfield, and Madison

County Farm Bureau, 1 p.m.,Edwardsville. To register go to{ilfb.org/regionalseminars} at leastthree days prior to the event. For moreinformation, email jharrison@ilfb.org orcall 309-557-3207.

Feb. 26IFB Crop Insurance and TruckRegulations seminars, 8 a.m., John A.Logan Community College’s H 127and 128, Carterville, and 1 p.m., FirstChristian Church, Salem. To registergo to {ilfb.org/regionalseminars} atleast three days prior to the event. Formore information, emailjharrison@ilfb.org or call 309-557-3207.

Feb 26Meet the Buyers event 9 a.m. to 5p.m., Heartland Community College,Normal. Registration deadline is Feb.22. Call McLean County Farm Bureauat 309-663-6497 to register.

Feb. 27IFB Crop Insurance and TruckRegulations seminars, 8 a.m., TheHoliday Hotel, Olney, and 1 p.m., LakeLand Community College’s WestBuilding, Mattoon. To register go to{ilfb.org/regionalseminars} at leastthree days prior to the event. For moreinformation, email jharrison@ilfb.org orcall 309-557-3207.

DATEBOOK

energy

Page 3 Monday, February 11, 2013 FarmWeek

Ethanol industry facing key challenges, ‘fighting back’BY MARTIN ROSSFarmWeek

Last week in Las Vegas,Renewable Fuels Association(RFA) President Bob Dinneensummed up the state of theethanol sector in five words:“under siege but fightingback.”

He led National EthanolConference participants in amantra of “Don’t mess withthe RFS,” and fired salvos atthe petroleum industry’s pushto eliminate or revise federalRenewable Fuel Standard(RFS2) biofuels mandates.

He argued “Americanethanol is engaged in a battlefor the barrel,” and called onbiofuels advocates to defendRFS2 from oil sector and con-gressional attacks, promoteE15 (15 percent ethanolblends), and fight “protection-ist” Brazilian/EuropeanUnion (EU) biofuels policies.

In 2011, the U.S. exported1.2 billion gallons whileimporting less than 300 mil-lion. Last year, the EU unsuc-cessfully pursued an anti-sub-sidy case against the U.S. andBrazil “fixed gasoline prices”and lowered its domesticethanol blend ratio “to protectits sugar industry.” As a result,exports fell to 700 million gal-lons and imports rose to near-ly 500 million.

Dinneen said he sees U.S.interests ultimately prevailingin the EU’s continuing anti-dumping case against U.S.ethanol.

Ag Secretary Tom Vilsacksaid biofuels growth is crucialto “the survival of ruralAmerica.” He said ethanolinterests face widespreadopposition because “you’rewinning . . . and the folks onthe other side are a bit con-cerned.”

Vilsack told FarmWeek heremained in “close contact”with the U.S. Trade Representa-tive’s office “to make sure ourmessage is being conveyed” onEU biofuels trade issues.

“I expect that at some pointin time, I’ll travel to the EU topersonally deliver that mes-sage,” he said.

Drought concerns have“exacerbated” efforts todefend the RFS2, RFA Chair-man Neill McInstray, ethanolgroup president with TheAndersons Inc., told Farm-Week.

Thirty-six of 211 U.S.ethanol plants have temporari-ly curtailed operations, theindustry is operating at rough-

ly 85 percent of capacity, andfor the first time in 17 years,production in 2012 declinedfrom the previous year.

But Dinneen said his indus-try’s greatest challengeremains “artificially con-strained demand fueled by BigOil’s propaganda.” The Amer-ican Petroleum Institute (API)“has declared war on theRFS2,” and public misinfor-mation has fueled “a Pavlovianconnection between ethanoland food prices,” he said.

API Executive Vice Presi-dent Marty Durbin, a confer-ence guest, insisted “we’re notagainst renewable fuels, we’renot against ethanol.”

“We think this program(RFS2) doesn’t work,” Durbinsaid.

Dinneen defended RFS2“flexibility” in providing cred-its that enable fuel blenders tomeet requirements duringperiods of reduced biofuelsproduction. Despite “theworst drought in 56 years,”RFS2 “is working to allowmarketers and others to adjustto these current realities,”McInstray said.

Dinneen also cited a battlefor ethanol market share“from Brussels to Brazil.”

RFS2 debate ‘disruptive’to biofuels investment?

Biofuels interests as well as those from the auto sector andeven the petroleum industry last week indicated they doubtCongress would give in to renewed pressure to eliminate theRenewable Fuel Standard (RFS2).

But consideration of RFS2 reforms is possible, according topanelists at last week’s National Ethanol Conference. Andwhatever the tenor or outcome of biofuels policy debate, amajor financial analyst said he fears the furor alone could spuranxiety in the investment community.

Mark McMinimy, director of Guggenheim Securities, saidhe sees continued investor interest in the biofuels sector and agcompanies that benefit from the “ripple effects” of biofuelsgrowth. But he warned many investors are disconcerted bypressure from “a contingent of influential industries” to alteror eliminate the RFS2.

“Institutional investors want to know where the policy’sgoing,” he told FarmWeek. “In a lot of cases, they’re devotinga large amount of money to companies that have an interestdirectly or indirectly in the Renewable Fuel Standard.

“When these bills come up that want to repeal or substan-tially alter the RFS2, that leads investors to wonder if theyshould reassess their strategy. In that sense, it’s very disruptiveto the investment process.”

American Petroleum Institute (API) Executive Vice Presi-dent Marty Durbin conceded his group was unlikely to getRFS2 repeal “over the finish line.”

John Reese, policy/advocacy manager with Shell Oil Prod-ucts, admits Shell has “a minority view” relative to API, seek-ing changes in rather than elimination of the RFS2. “If youlook at the math, the (ethanol) blend wall is still a problem”related to meeting long-term RFS2 goals, he said.

At the same time, Reese stressed Shell does not support useof E15 (15 percent ethanol blends) — one of the ethanolindustry’s key hopes for tapping existing ethanol productioncapacity and breaching the standard E10 blend wall.

Reese deemed EPA approval of E15 “premature,” whileBrooke Coleman, executive director of the Advanced EthanolCouncil, charged oil interests have consistently impeded effortsto break the ethanol blend wall.

The auto industry stood largely on the sidelines during 2012RFS2 debate: Shane Karr, vice president of federal govern-ment affairs with the Alliance of Automobile Manufacturers,reported “we have not picked a side.”

Karr finds the prospect of congressional RFS2 elimination“extremely unlikely.” But he told biofuels producers “we’regoing to be very engaged this round” in any discussion ofRFS2 reform measures. — Martin Ross

ETHANOL NUMBERS

87,292Direct U.S. jobs attrib-

uted to the ethanol industryin 2012

295,969Indirect ethanol-related

jobs

$43.4 billionEthanol’s 2012 contribu-

tion to U.S. gross domesticproduct

$30.2 billionNationwide household

income attributed toethanol

465 million Barrels of imported oil

displaced by ethanol in2012, valued at $47.2 bil-lion

$7.9 billion 2012 ethanol-related

federal, state, and localtax revenues that helpedsupport local roads,schools, and firstresponders

Edwardsville facility rebranding

Biofuels center chief seeks farm billTimely farm bill passage

is crucial to energizing a bio-fuels sector that is exploringpromising feedstocks andtechnologies but strugglingwith industry economics anduncertainty.

That’s according to JohnCaupert, director of theNational Corn-to-EthanolResearch Center (NCERC),an Edwardsville facilitybeing “rebranded” as theNCERC-Biofuels ResearchCenter to reflect its expand-ing scope.

Caupert said he is buoyedby reintroduction of theSenate’s 2012 farm bill pro-posal that includes a strongenergy title. However, Senatestaffers recently told him itwas largely “up to theHouse” to move first on along-term ag policy packagethat assures program fund-ing that was absent in theextension of the 2008 farmbill.

Midwest farm and biofu-els interests “want to seeaction by Congress,” Cau-pert told FarmWeek. Hedeemed it “very fortunate”that Illinois has three mem-bers each on House Agricul-ture and Energy/Commercecommittees.

The Energy Committee

includes Collinsville Repub-lican John Shimkus, ChicagoDemocrat Bobby Rush, andEvanston Democrat JanSchakowsky. The AgCommittee featuresthree freshmen: Tay-lorville RepublicanRodney Davis, EastMoline DemocratCheri Bustos, andBelleville Democ-rat Bill Enyart.

“We’ve beento them earlyand often,”Caupert relatedat last week’s NationalEthanol Conference. “We’vetalked about the importanceof a new, comprehensivefive-year farm bill. In partic-ular, we’ve talked about theneed for mandatory fundingfor a (farm bill) energy title.

“When extension of thefarm bill went through, allthat mandatory funding wasremoved. Funding for thingslike the (USDA-Departmentof Energy) Biomass R and DInitiative, where centers suchas ours team up with the pri-vate sector to commercializenew technologies. What sig-nal does that send to theinvestor community and tothe marketplace?”

The Senate farm bill ener-

gy title also includes biomasscrop and biorefinery assis-tance programs aimed at fos-tering new cellulosic ethanolproduction.

Caupert said he isexcited by center efforts

to tap corn branethanol potential as

well as the U.S. Envi-ronmental Protec-tion Agency’s newapproval of grain

sorghum-basedethanol as anenvironmentallyfriendly

“advanced biofuel,” openingnew avenues for develop-ment.

The center last yearinvested in a new “fermenta-tion suite” that helps simu-late commercial ethanol/bio-chemical processing. Thesuite has consistently been“booked up,” Caupert said.

However, the center relieson private partnerships forfunding, and he said “marketuncertainty” has some ven-ture capitalists skittish aboutbiofuels investment.

“We’ve had a couple ofpretty major projects can-celed — not delayed, notrescheduled — because of alack of funding,” Caupertadmitted. — Martin Ross

‘ A m e r i c a n e t h -anol is engagedin a battle for thebarrel.’

— Bob DinneenRenewable Fuels

Association

taxes

FarmWeek Page 4 Monday, February 11, 2013

Tax time: Section 179, insurance twists merit attentionBY MARTIN ROSSFarmWeek

Now that Congress hasaddressed the “fiscal cliff,”Illinois farmers can at leasttemporarily stop frettingabout taxes and prepare forfiling.

Until Congress finallyacted on New Year’s Day toextend a variety of expiredBush- and Obama-era taxmeasures, farm tax plan-ning was at best a diceyproposition, Illinois Agri-culture Auditing Associa-tion Small Business Servic-es Director Tom Huseksaid.

Now, farmers who riskedinvesting in 2012 may seeeven greater tax benefitsthan had been anticipated.

people are looking forplaces to buy equipment.”

Meanwhile, drought-strick-en farmers approved for cropinsurance payments last fallmay be able to defer taxes onthose payments until 2013, aslong as payments are based onyield or the portion of a rev-enue policy loss strictly attrib-utable to yield. Payments trig-gered by price shortfalls aretaxed in the year they arereceived.

Eligible growers must

make a deferral election ontheir farm Schedule F.Deferral of crop revenuesmust be a normal practicefor farmers hoping to deferinsurance payments.

“If my practice is toalways sell my corn in Janu-ary or to sell it in Septemberout of the field with a Janu-ary pay under a deferred-pricing contract, then thoseinsurance dollars can bedeferred until the next taxyear,” Husek explained.

Under the new AmericanTaxpayer Relief Act, U.S.Tax Code Section 179 hasbeen “enhanced” retroac-tively for 2012 and extend-ed for 2013, with a$500,000 expense deductionlimit and a $2 million limiton eligible annual capitalpurchases.

The 2012 deduction limitoriginally was $139,000, butfarmers now can use thehigher limit when filing 2012taxes. Under Section 179, abusiness can deduct the fullpurchase price of new orused financed or leasedequipment placed into serv-ice in the same tax year forwhich the deduction is taken.

New tax provisions alsoextend 50 percent bonus

depreciation, enabling pro-ducers to write off 50 per-cent of the cost of a newcapital asset in the first yearof ownership.

“Farm incomes havebeen substantially up overthe last couple of years,”Husek told FarmWeek.“Many farmers are trying tofind ways they can sheltersome of their income. Inmany cases, they’ve beenbuying equipment, beingable to take advantage ofbonus depreciation or Sec-tion 179 expensing.

“A lot of people areready to rock-and-roll, tostart this year’s spring off.They’ve got a lot of cash intheir pockets; they’ve paid alot of bills, and a lot of

Everything on the table?

Tax debateemerging onepiece at a time?

House Ways and Means Committee Chairman DaveCamp (R-Mich.) has continued to pledge his committee’spush for comprehensive basic tax reform during the113th Congress, American Farm Bureau Federation taxpolicy specialist Pat Wolff reported.

Wolff noted Camp already has “dribbled out” severalpieces of a plan that could lead to fundamental taxreform. Those include proposals to plug tax loopholesinvolving use of derivatives or other financial instrumentsand reducing corporate/personal income tax rates.

Under fundamental reform, “everything’s on thetable,” including individual rates and Section 179, Wolfftold FarmWeek. Further, she cited a “long list” list ofrecently extended tax provisions that expire in December— Section 179, bonus depreciation, biodiesel and windpower tax incentives — that must be dealt with eitherthrough fundamental tax reform or through separate leg-islation.

“I think they could push a comprehensive tax reformbill through the House, but its fate would be very uncer-tain in the Senate,” she nonetheless said.

“Dave Camp’s been beating the drum — ‘Tax reform,tax reform’ — but Senate Finance Committee Chairman(Max) Baucus (D-Mont.) hasn’t issued any statements.Everything’s just more complicated in the Senate.”

While some lawmakers have touted efforts to boost taxrevenues as a key option in reducing the federal deficit,Wolff said tax discussions and debate about spendingcuts under prospective budget “sequestration” appear tobe proceeding “on separate tracks.”

Ways and Means Committee member Aaron Schock, aPeoria Republican, noted support in the House for a planto reduce the six current personal income tax rates totwo.

But while President Obama has supported raising taxesfor those above prescribed income levels, Schock toldFarmWeek House Republicans have focused instead ontrimming deductions and loopholes “to make Americamore competitive.”

He suggested “across-the-board simplification” of thetax code, advocating tax “permanency” rather than thecurrent patchwork of annually or biannually expiring taxmeasures.

Outside a fundamental reform package, Wolff said shewas reasonably confident lawmakers will not attempt tofurther alter estate and capital gains taxes.

Illinois Agriculture Auditing Association tax specialistTom Husek argues existing income tax rates are “proba-bly good for another two years,” while Congress’ recentestate tax fix “is pretty much in place now.” — Martin

Ross

Despite IRS flexibility,specialist urges timely filing

Farmers have added flexi-bility in filing taxes thisspring, but Illinois Agricul-ture Auditing AssociationSmall Businesses ServicesDirector Tom Husek sug-gests they consider filing onthe same schedule that theyhave in the past.

Given Congress’ 11th-hour New Year’s Day taxaction, the U.S. InternalRevenue Service (IRS) con-tinues to prepare to process

2012-year tax returns. Atthe urging of Sen. ChuckGrassley (R-Iowa), the IRShas moved the farmer taxfiling deadline from March 1to April 15 this year.

Normally, if producerswere required to make quar-terly estimated tax paymentsfor 2012 and underpaid esti-mated taxes, they would notbe charged a penalty ifgross farming income for2011 or 2012 was at least

two-thirds of gross incomeand they file a 2012 taxreturn and pay tax due byMarch 1.

However, Grassley wasconcerned IRS might nothave the forms farmersneeded in order to meet thenormal March 1 deadline forfiling Form 1040 ScheduleFs.

“With the lateness of thetax change laws, and IRSmaking changes to its pro-cessing software, farmerswill be allowed to file theirreturns up to April 15 with-out having to face estimatedtax penalties,” Husek said.

“I would still encouragefarmers to get their infor-mation in and get their taxesdone by March 1. It getsaround to the first of April,those guys are itching to getout in the field. They stilldon’t have to pay their billuntil April 15.”

Estimated taxes are usedto pay tax on income that isnot subject to withholding,including income from self-employment, interest, divi-dends, alimony, rent, gainsfrom the sale of assets, andprizes and awards.

In addition, IRS hasrevised the software neces-sary to process Form4562/Depreciation andAmortization — the form inwhich Section 179 deduc-tions (see accompanyingstory) are documented. Theagency thus was not accept-ing tax returns includingForm 4562s until at leastmid- to late February. —Martin Ross

LIVESTOCK

Page 5 Monday, February 11, 2013 FarmWeek

Feed prices could ease later this yearBY DANIEL GRANTFarmWeek

Profitability in the livestockindustry could improve thisyear based on analysts’ projec-tions last week at the IllinoisPork Expo in Peoria.

David Nelson, Rabobankred meat specialist, predictedstrong demand and tight meatsupplies will translate to highprices for livestock this year.

“Six months ago, if youlooked at the futures contractsfor corn and soybean meal relat-ed to hog prices, it was prettynegative,” Nelson said. “But thehog market responded.”

Hog prices increased above$90 per hundredweight andcrop prices have experiencedperiods of decline in recentmonths. Pork producers wholocked in prices for hogs andtheir feed in many casessqueaked out some profit or

“Sugar is cheap (relative tocorn), so Brazil likely willprocess its sugar (for ethanol)and sell corn (on the worldmarket),” Martin said.

The world market also will bea key to U.S. livestock prices.

“Demand for meat proteinis mature in this country,”Nelson said. “We’ve becomemuch more reliant onexports.”

The U.S. currently is com-petitive on the world marketwith all animal protein,according to Nelson.

Hog prices in China thepast two months increased 10percent. Meanwhile, Europeanpork production is expected todecline 2 to 3 percent this yearas hog producers there adjustto the ban on the use of gesta-tion stalls.

“That (situation inEurope) could open moreexport opportunities for us,”said Nelson, who noted U.S.pork exports doubled in thepast decade. “(The exportmarket) is one of the mostimportant drivers of porkdemand.”

at least limited their losses.“This industry is doing a

very good job using thefutures market for risk man-agement,” Nelson said.

Livestock producers couldbe exposed to less risk thisyear if crop productionrebounds in the U.S.

Dan Zwicker, grain origina-tion manager with CGBEnterprises, predicted feedprices could ease by the sec-ond half of this year.

“I think livestock producershave upside (feed) price vul-nerability the next 60 days(leading up to spring plant-ing),” Zwicker said. “Then Ithink we’ll see some relief offeed prices as we move intosummer (particularly if U.S.crops get off to a good start).

Sue Martin, market analystwith Ag & Investment Servic-es, said she believes the small-

est U.S. cattle herd since 1952and decreased ethanol produc-tion will free up more corn touse as hog feed.

Corn likely will be availablefrom Brazil to feed livestockas well.

Stein: Options available to reduce feed costsPork producers don’t have

to sacrifice pig performance orthin their herds to reduce inputcosts.

There are a variety of waysfarmers can lower feed costson their operations to helpimprove the bottom line,according to Hans Stein, Uni-versity of Illinois swine nutri-tionist.

Stein last week provided hogfeeding tips to farmers at theIllinois Pork Expo in Peoria.He recommended farmersfocus on the very place pigsconsume their food.

“Make the effort to gothrough the entire (feeding)

bean meal.“Illinois is special,” he said.

“There are many different co-products available here.”

Co-products that can low-er swine feed rations includedistillers grains, corn gluten,corn germ meal, hominy, bak-ery meal, and wheat mid-dlings.

“Depending on whereyou’re located, there may beopportunities to use (some ofthe various co-products) informulations,” the swinenutritionist said. “You can getsome nice savings.”

Small grains, such aswheat, barley, oats, and peas,

are less plentiful statewide butcan be very attractive feedingredients at some locations.

Stein also recommendedfarmers and nutritionistsmonitor the amount of aminoacids in swine formulations.The average daily gain flat-tens out once amino acidsreach the optimal level.

“Make sure you don’t over-formulate the diet,” Steinsaid.

For more feed recommen-dations and updates on thelatest research, visit the web-site{nutrition.ansci.illinois.edu}.— Daniel Grant

system to make sure you don’thave waste,” Stein said. “Feed-ers are the main place (wasteoccurs). Many are either tooold and leak feed or are notwell adjusted.”

Feed waste on most hogfarms ranges anywhere from 2percent to 12 percent of feed,according to Stein.

The feed pan (in feeders)should be no more than 30 to40 percent covered by feed.

“If it exceeds that, researchshows it increases feed waste,”he said.

Pork producers also canchange the physical make-upof feed to improve digestibility

and the feed conversion rate.Pigs derive more energy

from finer ground feed,although feed that is groundtoo fine can cause ulcers inthe animals. Pelleting alsoimproves the feed conversionrate by more than 5 percenton average, Stein said.

He said heavier pigs typi-cally have lower feed conver-sion rates, so farmers maywant to consider marketinghogs at lower weights.

Stein also urged producersto consider using a variety ofalternative feed ingredientsthat can be cheaper and justas effective as corn and soy-

IPPA president optimistic after challenging yearDereke Dunkirk, Mor-

risonville, said he believes 2013will be a better year than 2012for pork producers.

Hog farmers last springwere caught off guard when

several foodretailers andrestaurantchainsannouncedlong termplans tosource porkthey purchasefrom opera-tions that do

not use gestation stalls. Thepolicy change was in responseto pressure from animalactivist groups.

Things got worse last sum-mer and fall as the 2012drought burned up much ofthe crops in the state and Mid-west and pushed feed prices tonew highs.

pork only from farms thatdon’t use gestation stalls laterclarified the plans are longterm. McDonald’s, for

instance, plans by 2022 tosource all its pork from farmsthat don’t use gestation stalls.

“That gives us time to figurethings out,” Dunkirk said.

Pork producers in themeantime are working withfood retailers and consumersso they better understand hogproduction.

“Some production systemswe have in place we think pro-

vide the best care for animals,”Dunkirk said.

Some producers are waitingfor more direction from retail-ers before making changes totheir operations while others,who are building or updatingfacilities, are setting them up tohandle gestation stalls or grouphousing, Dunkirk said.

Pork producers at the IPPAannual meeting also called forthe continuation of efforts topromote ground pork, propertesting of corn and other feed-stuffs to ensure they meet feedquality standards, and increasedefforts to promote pork as avaluable protein source for theschool lunch program.

Other hog farmers electedto key IPPA leadership posi-tions last week are Todd Dail,Erie, president-elect; CurtZehr, Washington, vice presi-dent; and Bob Frase, Fairbury,secretary. — Daniel Grant

The sow housing announce-ments last year “took us bystorm and left producers witha lot of questions,” saidDunkirk, who last week was re-elected president of the IllinoisPork Producers Association.“And then with the drought,guys were just trying to figureout what to do about sourcinginputs.

“Fortunately, pork pricesstayed relatively strong asexports continued to grow,” hecontinued. “That kept it frombeing a perfect storm of highfeed costs and low pork prices.”

Illinois pork producers lastyear managed to keep theirherd sizes mostly intact,despite the economic chal-lenges.

Hogs and pigs in Illinois asof Dec. 1 totaled 4.6 millionhead, down 1 percent from theprevious year, while the num-ber of breeding hogs increased

2 percent to 490,000.“With huge planting inten-

tions and with trendline yields,it looks like we’ll have a big

supply (of corn and soy-beans),” Dunkirk toldFarmWeek at the Illinois PorkExpo in Peoria. “That wouldbe encouraging to producers.”

Meanwhile, he believes hogfarmers should have plenty oftime to adjust to any changesin sow housing requirementsby food retailers.

Many food retailers thatannounced plans to source

Dereke Dunkirk

‘Some production systems we have inplace we think provide the best carefor animals.’

— Dereke DunkirkPresident, Illinois Pork Producers Association

PRODucTION

FarmWeek Page 6 Monday, February 11, 2013

For More Information...Contact your county Farm Bureau or visit www.ilfb.org

For More Contact your county Farm Bureau or visit www.ilfb.org

e Information...Contact your county Farm Bureau or visit www.ilfb.org

Contact your county Farm Bureau or visit www.ilfb.org

Still time to register for GALCFarm Bureau members may still register for the Illinois Farm

Bureau Governmental Affairs Leadership Conference (GALC)Feb. 20-21 in Springfield’s Crowne Plaza Hotel.

Registration is being offered for either or both days.Participants are being asked to bring non-perishable food

items to the conference. All items will be donated to the CentralIllinois Food Bank and count toward the IFB Young LeadersCommittee Harvest for All program.

To register, contact your county Farm Bureau office or goonline to {ilfb.org}.

Illinois bucks national trend; cattle herd growsBY DANIEL GRANTFarmWeek

The U.S. inventory of cattleand calves as of Jan. 1 totaledjust 89.3 million head, down 2percent from a year ago.

It was the lowest Jan. 1inventory of all cattle andcalves nationwide since 88.1million head were on hand in1952, USDA reported thismonth.

“The 2012 drought was the

primary driver of thedecrease (in cattle num-bers) last year as itdestroyed pastures andforage supplies and cat-apulted corn, sorghum,and soybean mealprices,” said Chris Hurt,Purdue UniversityExtension economist.

The situation was a littlemore positive in Illinois, how-ever. USDA reported theinventory of cattle and calvesin the Prairie State on Jan. 1totaled 1.12 million head, up50,000 head compared to lastyear.

In fact, it was the firstincrease in the Jan. 1 cattleinventory in Illinois since2007.

“It was the combination ofa lot of things in Illinois,” saidNic Anderson, business devel-oper for the Illinois LivestockDevelopment Group.

“Some of it has to do withthe seasonal placement of cat-tle.”

Beef cow numbers last yeardropped by 9 percent in theSouthern Plains and 6 percentin the Central Plains. Hurtbelieves some of the cows inthe South were moved to the

Northern Plains, where rainand feed were more abundant.

But some of the increase inbeef-cow numbers in Illinoiswas due to expansion, despitethe difficult economic timesfor livestock producers.

Notices-of-intent to con-struct cattle sheds the pastthree years in the stateincreased about 50 percentcompared to previous years,according to Anderson.

Farmers who construct newcattle sheds for nutrient man-agement and environmentalimprovements often improvethe efficiency of their opera-tions and then add more ani-mals, he said.

“In Illinois and the Mid-west, we have about a $50 (perhead) feed advantage com-pared to people in the South-west and outside of the CornBelt,” Anderson said.

Unfortunately, feedavailability and highfeed costs are expectedto be a challenge at leastthe first half of thisyear. USDA recentlyreported hay supplieswere at the lowest levelsince 1957.

“Cow herd numbers con-tinue to decrease with thelack of pasture and forages,”said Justin Fruechte, foragegrass specialist with Mill-born Seeds. “Unless youplan to increase your feedcrop acres, prepare to cullcows.”

Nationally, the beef-cowherd decreased by 3.6 millionhead (11 percent) since 2007,Hurt added.

Nic Anderson, business developer for the Illinois LivestockDevelopment Group (ILDG), this month promoted the live-stock industry at the Illinois Dairy Summits and the IllinoisPork Expo, and will be at the Illinois Beef Expo (Feb. 21-24). Illinois Farm Bureau is a member of ILDG.

CATTLE NUMBERS

1.12 millionThe number of cattle and

calves in Illinois on Jan. 1,marking the first increasein five years.

89.3 millionThe number of all cattle

and calves in the U.S. onJan. 1, the smallest herd inthe nation in 60 years.

38.5 million The number of cows and

heifers that calved in theU.S. as of Jan. 1. This isthe lowest Jan. 1 inventoryof all cows and heifers thathave calved since 1941.

IFB iPAD DRAWING AT PORK EXPO

Rick Winkler, a farmer from Coles County, registers for a free iPad at the Illinois Farm Bureau booth dur-ing last week’s Illinois Pork Expo in Peoria. Looking on is Melissa Rhode, IFB membership and programdirector. The annual expo is the premier show for the pork industry in the state. (Photo by Daniel Grant)

Only 50 Available

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Page 7 Monday, February 11, 2013 FarmWeek

Is Federal Crop Insurance part of your plan for 2013?The drought of 2012 left many farmers without a crop, but COUNTRY Financial didn’t leave them without Federal Crop Insurance coverage. When COUNTRY surveyed our clients throughout the season, we found that we exceeded customer

service objectives in every category.

Make sure you’re ready for 2013. Contact your COUNTRY Financial representative or

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Hurry! Sales closing date is March 15th!Policies issued by COUNTRY Mutual Insurance Company®, Bloomington, IL. This entity is an equal opportunity provider. 0113-526HO

Expectations of big South American crops weigh on marketsBY DANIEL GRANTFarmWeek

Corn and soybean futurestook a dive Friday as USDAupped its production esti-mates for both crops inBrazil.

USDA in its world agricul-tural supply and demand esti-mates report Friday raised its

production estimates in Brazilby 58.5 million bushels forcorn and 36.7 million bushelsfor beans.

The bump in crop produc-tion estimates was due to animproved moisture situationin Brazil in recent weeks,USDA reported.

Meanwhile, an extendeddry period in Argentina appar-ently didn’t affect soybeanproduction as much as expect-ed by traders. USDA on Fri-day reduced its estimate ofsoybean production in

per bushel due to the largecrop in South America. ButScoville expects bean priceswill hold up overall leading

into planting.USDA on Friday reduced

soybean ending stocks by 10million bushels, to 125 millionbushels, and raised the season-average price forecast a nickelto $13.55 to $15.05.

The bullish news on Fridaywas in the wheat market.USDA cut wheat endingstocks by 25 million bushels,to 691 million bushels, andraised feed use by 25 millionbushels.

“I think demand will con-tinue to increase for wheat,”Scoville said.

USDA on Friday projecteda season-average price rangefor wheat of $7.70 to $8.10per bushel.

The markets for corn andsoybeans could change drasti-cally by the second half ofthis year. If big crops are real-ized in the U.S., prices by thisfall could slip to around $5 perbushel for corn and $10 forbeans, Scoville added.

Argentina by 36.7 millionbushels.

“There will be plenty ofsoybeans coming out of SouthAmerica, starting in about 30days,” Jack Scoville, vice presi-dent of The Price FuturesGroup, said Friday during ateleconference hosted by theMinneapolis Grain Exchange.“Even with all the weatherproblems (in South America),we’re looking at a pretty bigcrop.”

USDA on Friday left itsestimate for U.S. soy exportsunchanged at 1.345 billionbushels and cut corn exportsby 50 million bushels, to just900 million bushels, due to thesluggish pace of sales and theprospects for more competi-tion from Brazil.

The corn export estimate, ifrealized, would mark the firsttime in 40 years the U.S.exported fewer than 1 billionbushels.

USDA as a result of slump-ing demand for corn raised2012/13 corn ending stocks30 million bushels, to 632 mil-

lion bushels, and lowered itsseason-average price forecast20 cents to a range of $6.75 to$7.65 per bushel.

“The corn market is strug-gling,” Scoville said. “It’s easyto understand why, withdecreased demand andincreased (world) production.”

Bean prices near-termcould slip by 40 to 50 cents

FarmWeekNow.com

For more details on USDA’s cropproduction and supply-demandreports, go to FarmWeekNow.com.

Nearly 90 percent of the crop damageclaims filed with Country Financial thatresulted from last year’s drought have beenpaid, said Brad Clow, manager of cropclaims.

Despite the devastating drought, recentlysurveyed Country crop clients provided thehighest customer service marks the companyhas received in the last five years.

“I am extremely proud of our efforts tofully serve our clients during such a tryingtime,” said Clow.

Country took several steps last year tomake sure clients received prompt payment.It:

• Formed a drought team in early July to

keep clients informed via farmer meetings, thecompany website, and nearly 50 media inter-views reaching more than 2.8 million people

• Contacted farmers within 24 hours ofclaims filing and maintained continued con-tact

• Made policy changes in the field to speedclaims processing

• Moved claims auditing processes to thefield to improve turnaround time

With the March 15 federal crop insurancedeadline approaching, Country representativesand crop specialists are meeting with farmersacross the state to ensure their 2013 crops arefully protected. More information is availableat {countrycrop.com}.

Most Country drought claims paid

Nominate a rural Illinois championDo you know someone who works hard to make a difference in

rural Illinois? Nominate that person or group as a rural championby Feb. 15.

Nominees may be featured on Lt. Gov. Sheila Simon’s web andsocial media sites.

Submissions need to include the individual’s or group’s name,city, contact information, occupation, geographic scope of impact,length of service or project, and whether it is a volunteer or paidposition.

Nominees may be submitted for efforts in economic develop-ment, agriculture, education, sustainability, public service, or someother category. Also state in 250 or fewer words what the nomineedoes “above and beyond to make a difference in rural Illinois.”

Those making nomination must include their name, email,phone number, city, state, and relationship to the nominee.

Submit nominations to Laura Hepp Kessel at laura.kessel@illi-nois.gov or by mailing them to:

Office of the Lt. Governor, Stratton Building, Room 414, Attn:Laura Hepp Kessel, 401 S. Spring St., Springfield, Ill. 62706.

Tuesday: • Ag weather with Harvey Freese ofFreese-Notis• Bob Dewey, Country Financialcrop insurance specialist• Stu Ellis, director of AgEngage• Kevin Rund, senior director oflocal governmentWednesday:• Amy Bliefnick, Illinois State Fairmanager• Brenda Matherly, assistant direc-tor of local government• Pat Stieren, Illinois FarmersMarkets Association• Brad Clow, manager of cropclaims, Country FinancialThursday:• John Hagenbuch, Illinois SoybeanAssociation director from Utica• Bonnie McDonald, president ofLandmarks Illinois Friday: • Sara Wyant, Agri-Pulse publisher• Tom Husek, Illinois AgriculturalAuditing Association

To find a radio station near you that car-ries the RFD Radio Network, go toFarmWeeknow.com, click on “Radio,” thenclick on “Affiliates.”

‘The corn market is struggling.’

— Jack ScovilleVice president The Price Futures Group

government

FarmWeek Page 8 Monday, February 11, 2013

The New High Value Crop

Be a part of making it happen. Take the challenge.

Soybean Growers! This is your opportunity to test new and innovative farming practices to boost soybean yields. Best of all, be recognized and rewarded for it.

The Illinois Soybean Association created the Yield Challenge three years ago to boost yields. Our goal is to help meet the growing worldwide demand and to make Illinois soybean growers the global leaders in soybean production. Soybeans can be the new high value crop. We are inviting growers from across Illinois to explore, strategize and test new methods and crop protection products. Each district will have a first and second place award of $500 and $250. Plus, each winner will receive a certificate and recognition at the annual Illinois Commodity Conference!

For more details and to register, please visit www.soyyieldchallenge.com or email yieldchallenge@ilsoy.org.

Registration Fee: Only $25 per participant!

2013

AFBF gauges House immigration reform supportBY MARTIN ROSSFarmWeek

Reading between the“guidelines,” Farm Bureau ispinning its hopes on broadSenate immigration reformproposals.

In late January, a bipartisanSenate coalition, includingSpringfield Democrat Sen.Dick Durbin, unveiled a gener-al “framework” for immigra-tion reform touching on aglabor needs.

American Farm BureauFederation (AFBF) policy spe-cialist Kristi Bosworth toldFarmWeek AFBF and othermembers of a diverse AgWorkforce Coalition (AWC)were canvassing key House

potentially including proposalsto improve the existing, widelycriticized H-2A ag guestworkerprogram.

For example, HighlandPark Republican Sen. MarkKirk joined last week with U.S.Reps. Mike Quigley, a ChicagoDemocrat, and Aaron Schock,a Peoria Republican, to rein-troduce the Visa Waiver Pro-

gram Enhanced Security andReform Act. The bill wouldbolster a federal program thatcurrently affords visa-freetravel for eligible visitors from37 countries.

Bosworth this week said sheis looking to President Obama’sState of the Union Address foran emphasis on immigrationreform that might “raise theenergy” on Capitol Hill.

“Immigration was addressedin his inaugural address,” shesaid. “That gets the word out tothe rest of America — not justthose living in the nucleus herein D.C. When that happens,senators hear from their con-stituents and feel a little bit ofpressure.”

leaders and House Judiciary andAg Committee members onSenate proposals, “making sureour interests are very wellknown.”

Meanwhile, the AWC isnegotiating with the UnitedFarmworkers Union on detailsof a potential ag worker “carve-out.” The ag coalition has laidout a two-tiered proposal forensuring an adequate supply ofseasonal and year-round work-ers and new, long-term ag workoptions for the estimated 11million undocumented immi-grants now in the U.S.

“From a broad standpoint,the Senate guidelines weregood for agriculture — theynoted that we were unique,”

Bosworth said. “Still, they’reguidelines. I think there aresome concerns until we puttogether the specific legisla-

tive language and everyone’saware of what we’re lookingat.”

In the interim, she said sheanticipates introduction of avariety of smaller, morefocused immigration proposals,

Illinois freshman co-chair of new Mississippi caucusFreshman U.S. Rep. Rod-

ney Davis, a TaylorvilleRepublican, has formed aMississippi River Valley andTributaries Caucus with bipar-tisan colleagues from all alongthe major waterway.

Davis, a member of HouseAgriculture and Transporta-tion/Infrastructure commit-tees, is one of four caucus co-chairs, along with Reps. BlaineLuetkemeyer (R-Mo.), CedricRichmond (D-La.), and CollinPeterson (D-Minn.) rankingDemocrat on the Ag Commit-tee.

The Mississippi River runs

lies in the 13th District.”Ag goods from the Missis-

sippi region annually con-tribute $54 billion to the U.S.economy and represent 92percent of the nation’s farmexports, caucus membersreported.

Dennis Wilsmeyer, execu-tive director of America’sCentral Port at Granite City,noted continued winter trafficin “anything and everythingthat’s moving on barges,”including coal, steel, fertilizer,and “a fair amount of grain.”

Late January rains tem-porarily enabled shippers to

load barges more fully andcost-effectively. But given cur-rent river infrastructure andCorps restrictions and fund-ing, suppliers and exporterscontinue to operate at thewhim of nature.

“I don’t think ‘normalactivity’ is going to come backimmediately,” Wilsmeyer toldFarmWeek. “With the riverfluctuating like this, it doesn’tmean everybody can beginhandling things as quickly asthey had before all this started.There’s still going to be a wait-and-see approach to things.”— Martin Ross

along the western edge ofDavis’ 13th District, while theIllinois River flows throughthe district.

How crucial the Mississippiis to the nation’s commercewas obvious this fall whenconcerns about a potential clo-sure of the Upper Mississippibetween St. Louis and Cairosurfaced. The drought, com-bined with U.S. Army Corps ofEngineers rejection ofrequests to release waters fromMissouri River reservoirs,prompted Corps-supervisedrock removal to clear thechannel in that stretch of the

river.“The river

winds alongIllinois for450 miles,providing avital artery toship agricul-tural prod-ucts and oth-er goods thathelp keep

this country moving,” Davissaid. “This caucus provides abipartisan forum to discussthe importance of the Missis-sippi River, especially to busi-nesses, employees, and fami-

Rep. RodneyDavis

Agribusiness summit to be held in DecaturA global agribusiness summit will be held March 13 in Decatur.Featured speakers will include Brett Begemann, president of

Monsanto; Mary Shelman, director of the agribusiness programat Harvard Business School; Cory Reed, vice president of globalmarket services at John Deere; and Colleen Callahan, director ofUSDA Rural Development in Illinois.

The event will focus on the future of technology, policy,equipment, and consumer issues. Illinois Farm Bureau is one ofthe sponsors.

Proceeds will benefit Illinois Ag in the Classroom.Tickets, which cost $10, are required and can be ordered

online at {GlobalAgSummit.com} or by calling 217-424-6318.

Women in Ag conference offering business and government sessions

Women involved with the agriculture industry will findmarketing, government, and educational sessions at theWomen in Agriculture Conference March 22 in Jumer’s Casi-no and Hotel, Rock Island. The early registration deadline isFeb. 28.

Registration will start at 8 a.m. The conference will concludeat 3:40 p.m. Speakers will discuss farm estate planning and farmlife.

Participants may select from among nine sessionsrelated to specific areas of interest. Topics will includebeginning and advanced marketing, agriculture and gov-ernment regulations, state legislative issues, Agriculturein the Classroom, and the MarketMaker database pro-gram.

The registration fee is $50 per person by Feb. 28, $60 afterthat date, and $75 on March 22. Room reservations must bemade by March 5 by contacting 309-756-4696.

To register, contact the Rock Island County Farm Bureauoffice at 309-736-7432 or go online to {womeninagriculturecon-ference.com}.

‘The Senate guidelines were good foragriculture ... Still, they’re guidelines.’

— Kristi BosworthAmerican Farm Bureau Federation

Economy

Page 9 Monday, February 11, 2013 FarmWeek

Money grows in trees, wood in Illinois BY KAY SHIPMANFarmWeek

Illinois policymakers maynot see the forest for the treeswhen it comes to the economicimpact from the state’s forestsand related industry sectors.

The forestry and forestryproducts industries makeimportant economic contribu-tions in Illinois, according to arecent study by the IllinoisForestry Development Coun-cil.

“We were blown away bythe significance of the sector,”University of Illinois Exten-sion forester Jay Hayek toldFarmWeek.

Timber grows on more than4.78 million acres in Illinois —about 13.4 percent of thestate’s total land area.

The forestry productsindustry encompasses log-ging, processing of solidwood products, wooden fur-niture manufacturing, andsecondary manufacturing,such as flooring and cabinets.

(See the numbers at right)In Illinois, the secondary

manufacturing sector employsthe most Illinois workers pri-marily in the Chicago area,according to Hayek. (Notemanufacturing chart above)

Furniture manufacturing isthe second-largest sector with20,267 employees and $2.83billion in industry output. Soldwood processing, whichincludes sawmills and plywoodmills, ranks third with 18,316employees and $2.59 billion inoutput.

Hayek noted the forestryindustry sectors add directly tothe state’s economy throughjobs, wages, and productions.

The industry contributesindirect economic benefits bybuying goods and servicesfrom support industries.

In addition to the economicbenefits, Illinois forests pro-vide environmental benefitsand recreational opportunitiesthroughout the state.

For more information, see

the Illinois Forestry Develop-ment Council’s website at{ifdc.nres.uiuc.edu}.

FORESTRY NUMBERS

131,459Full and part-time jobs in

the Illinois forestry andforestry products sector.

$8.1 billionAnnual payroll of

employees in Illinoisforestry and forestry prod-uct industry.

$2.49 billionAnnual tax revenue gen-

erated by the forestry sec-tor.

Source: Illinois Forestry Development Council

type offered through thesale,” he said.

The sale catalog along withsupporting information isonline at {IPTBullSale.com}.

The sale is supported byUniversity of Illinois Exten-sion, U of I animal sciencedepartment, Illinois AngusAssociation, Illinois Simmen-

tal Association, Vita-Ferm,and ABS. For more informa-tion, contact Meteer at 217-823-1340 or email him at wme-teer@gmail.com.

Commercial cow-calffarmers and seed stock breed-ers interested in buying a per-formance-tested bull maywant to to attend the 2013Illinois Performance Tested(IPT) Bull Sale at 11 a.m.Thursday, Feb. 21, in theLivestock Center on the Illi-nois State Fairgrounds,Springfield.

There are 85 bulls cata-logued, 19 are longer-aged2011 mature bulls, and 66 areyearlings. Of the breeds, 45are Angus; 33 Simmental, andseven Hereford.

Previously, 4,458 bulls val-ued at more than $7.5 millionwere sold, according to TravisMeteer, the sale manager.

The sale order will bebased on a power-score sys-tem that uses the economicindexes provided by the breedassociations.

Along with strict require-ments for superior EPDs(expected progeny differ-ences), bulls must meet someof the most rigorous require-ments in the industry.

“These bulls don’t justhave to pass the test. Theyhave to pass every test,”Meteer said.

All of the bulls must meeta stringent minimum scrotalcircumference for their age.Mothers of the bull arerequired to test negative forJohne’s Disease or come froma level 1 or higher herd of theVoluntary Johne’s Certifica-tion Program. Bulls also mustbe tested for bovine viraldiarrhea (BVD) using the per-sistently infected (PI) ear-notch screening system.

All senior and Januaryyearlings must be fertilitytested. All bulls are requiredto be free of genetic defectsand meet weight, frame, andfunctional soundness evalua-tions prior to the sale.

Meteer said the 2013 salewill offer some of the mostelite bulls found anywhere inthe U.S. as verified by theirpower scores.

“There are truly uniquecombinations of perform-ance, pedigree, and pheno-

Illinois Performance Tested Bull Sale scheduled Feb. 21

First Illinois Farmers’ Market Conference scheduled

The first annual Illinois Farmers’ Market Conference will beMarch 7-8 in the State House Inn, Springfield.

The registration deadline is Feb. 22.The goal is to address the need for professional develop-

ment for market vendors, staff, and supporters. The two-day conference will include 12 sessions on such

topics as growing new markets, community partnerships, leg-islative updates, farmers’ market trends, food safety initiatives,and producer-only standards.

The first day will conclude with a networking reception.The conference is being sponsored by the Illinois Farmers’

Market Association through a USDA farmers’ market promo-tion program grant.

For more information or to register, go online to {ilfarm-ersmarket.org}.

HISTORY

FarmWeek Page 10 Monday, February 11, 2013

MAZIMIZING EVERY ACRE

Auction CalendarTues., Feb. 12. 8:30 a.m. MachineryConsignment Auc. HAMILTON, IL.Sullivan Auctioneers, LLC. www.sul-

livanauctioneers.comWed., Feb. 13. 10 a.m. Online Only.

www.bigiron.comSat., Feb. 16. 10 a.m. Jackson andUnion Co.’s Land Auc. JACOB, IL.

www.buyafarm.comTues., Feb. 19. 11 a.m. Farm Eq.Closing Out Auc. Donnie and LindaHoeft, DELAVAN, IL. NehmelmanAuction Co. and Ron Sanert,Auctioneers. topauctions24-

7.com/nehmelman or auctionzip.comThurs., Feb. 21. 10 a.m. Farm

machinery. Mike and Susan Seitzinger,LAWRENCEVILLE, IL. Parrott

Auctions. www.parrottauctions.comor www.auctionzip.com id 4851

Fri., Feb. 22. 7 p.m. Farmland Auc.Benjamin Howard Tull Est., SHEL-BYVILE, IL. Gordon Price AuctionService. www.priceauction.comFri., Feb. 22. 9 a.m. ConsignmentAuction. MORRIS, IL. Richard A.

Olson and Assoc. www.richardaol-son.com

Fri., Feb. 22. 6 p.m. Edwards Co.Farmland Auction. The Melvin W.

Crackel Trust and Nadine M. CrackelTrust, ALBION, IL. Barnard Auctions.

www.auctionzip.com id 2008Sat., Feb. 23. 10 a.m. Shelby Co.Land Auc. Michael A. Rhoden andSharon R. Glennon, STEWARD-SON, IL. Krile Auction Service.www.auctionzip.com id #6524Sat., Feb. 23. 10 a.m. Gallatin CoLand Auc. www.buyafarm.comTues., Feb. 26. 10 a.m. ModernClean Farm Eq. Edwin LawrenceEstate, WARRENSBURG, IL. Mike

Maske Auction Service.www.maskeauction.com

Tues., Feb. 26. Douglas Co. LandAuc. Justus Seaman Trust Farm. SoyCapital Ag Services. www.soycapi-

talag.comWed., Feb. 27. 10 a.m. Bureau/Stark

Counties Farmland. Paul andCluskey, WYANET, IL. RedigerAuction Service and Brummel

Realty, LLC. www.rickrediger.comor www.brummelrealty.comThurs., Feb. 28. McLean Co.

Farmland. Len Jones Trust Heirs.Soy Capital Ag Services. www.soy-

capitalag.com

Thurs., Feb. 28. 9 a.m. Peoria Co.Farmland. Marcus W. Britton, DUN-LAP, IL. Jim Maloof Farm and Land,

John Leezer.www.illinoisfarms4sale.comFri., Mar. 1. 10 a.m. McLean Co.Land Auc. STANFORD, IL. FarmersNational Co. www.farmersnation-

al.comFri., Mar. 1 and Sat., Mar. 2. 9:30a.m. both days. ConsignmentAuction. RANTOUL, IL. Gordon

Hannagan Auction Co.www.gordyvilleusa.com

Sat., Mar. 2. 9 a.m. Farm Machinery.Dean Monke Farm, MT. OLIVE, IL.Ahrens and Niemeier. www.a-nauc-

tions.comSat., Mar. 2. 26th Annual Con. Auc.Murrayville-Woodson EmergencyAmbulance Service. mweas.comSat., Mar. 2. 10 a.m. Calhoun Co.Land Auc. PLEASANT HILL, IL. Buy

A Farm. buyafarm.comSat., Mar. 2. 9 a.m. Farm &

Construction Eq. Consignment Auc.TREMONT, IL. Cal Kaufman and

Brent Schmidgall, Auctioneers. kauf-manauction@aol.com or

brentschmidgall@yahoo.comSun., Mar. 3. 9 a.m. ConsignmentAuction. Murrayville Woodson EAS,MURRAYVILLE, IL. Mweas.com

Tues., Mar. 5. 10 a.m. McDonoughCo. Land Auc. Jack and Nancy

Laverdiere, MACOMB, IL. SullivanAuctioneers, LLC. www.sulli-

vanaucitoneers.comWed., Mar. 6. 10 a.m. ChampaignCo. Farmland Auc. URBANA, IL.murraywiseassociates.comThurs., Mar. 7. Spring Farm

Closeout and Consignment Auc.Agri-Tech, Inc, RAYMOND, IL.Thurs., Mar. 7. McLean Co.Farmland Auc. Soy Capital Ag

Services. www.soycapitalag.comFri., Mar. 8. 10 a.m. Vermilion Co.Land Auc. HOOPESTON, IL. HertzReal Estate Services. www.hertz.agFri., Mar. 8. 9 a.m. ConsignmentAuc. GREENVIEW, IL. Ron Sanert,

Gordon Watkins and EldredNehmelman, Auctioneers.

Auctionzip.com auction id2473 ortopauctions.com

Sat., Mar. 9. 9 a.m. ConsignmentAuction. BALDWIN, IA. Powers

Auction Service. www.powersauc-tion.com

Allison Carr, research specialist with Illinois Farm Bureau’s informationmanagement, displays some of the objects that have been collected fora new Illinois Farm Bureau family of companies archive. The archive ishoused in the IFB Building in Bloomington.

New archive preserving pieces of historyBY KAY SHIPMANFarmWeek

A worn leather booklet, yel-lowed typed pages, and fadedbadges tell a story about theIllinois Farm Bureau family ofcompanies.

That memorabilia and otherpieces of history are being col-lected and preserved in a newarchive housed in the IFBBuilding in Bloomington.

“There are all kinds of treas-ures,” said Allison Carr,research specialist with IFBinformation management.

On the wall, Carr pointed toa framed tan coverall, possiblyworn by a claims adjuster in thefield. She gingerly lifted a yel-lowed typed page — a tran-script of the 1919 IFB annualmeeting. These treasures onlyhint at the variety of objects onshelves and in boxes.

The idea for an archive start-ed with an IFB GrassRootsIssue Team and was launchedin 2010 when IFB began pre-serving items, including those

from an earlier Country Com-panies (now Country Financial)archive.

Last September, the newarchive’s collection officiallyexpanded into historical objectsfrom the Farm Bureau familyof companies. GROWMARKand Country Financial are pro-viding resources and items forthe archive, according to Carr.

Currently, the archive’s mate-rials are being organized andeventually will be available forviewing. Carr envisions each

item being catalogued with asearchable database one day.For example, someone seekinginformation about former IFBPresident Harold Steele wouldbe able to find articles andmaterials by searching for hisname.

As the project progresses,the IFB may ask for items ofinterest, she added.

“We want to preserve andtell the story of Illinois FarmBureau, Country, and GROW-MARK,” Carr explained.

Memorabilia representing the history of GROWMARK, Illinois Farm Bu-reau, and Country Companies (now Country Financial) is being preservedin a new IFB family of companies archive. (Photos by Ken Kashian)

Page 11 Monday, February 11, 2013 FarmWeek

FB IN ACTION

FarmWeek Page 12 Monday, February 11, 2013

Power Efficiency Protection

Ag literacy efforts expandingBY KAY SHIPMANFarmWeek

Youngsters will be connecting agriculture to summer readingadventures and learning about gardening, thanks to new materi-als from Illinois Agriculture in the Classroom (IAITC).

Last week, county ag literacy coordinators learned agriculturestories and topics dovetail with the theme for the reading pro-gram to be offered statewide this summer by the Illinois LibraryAssociation.

Danny Mielneckzek, Illinois Farm Bureau education specialist,suggested several ag-related books and activities that fit thetheme “Have Book Will Travel.” He recommended a story aboutJohnny Appleseed to teach children how apples were planted inthe Midwest.

Gardening is another focus with a new “Once upon a Gar-den” booklet developed with support from the IAA Foundation.

The booklet offers lessons, books, and activities related to dif-ferent aspects of gardening ranging from container gardens tocommunity gardens. The ideas included different theme gardens,such as a pizza garden that is planted with the ingredients tomake a pizza or a peanut butter and jelly garden that wouldinclude peanuts and strawberries to make into jelly.

For more information, go to {agintheclassroom.org} or callIAITC at 309-557-2088.

Dawn Weinberg, Calhoun County Farm Bureau ag literacy coordinator,creates a smile using apple slices, peanut butter, and marshmallowsduring a meeting for ag literacy coordinators in Bloomington last week.The apple activity was one of several suggested for the statewide read-ing program at public libraries this summer. (Photo by Kay Shipman)

*Price per person, based on double occupancy. Airfare is extra. For reservations & details

call 7 days a week:

1-800-736-7300

Travel with other Farmers!Rocky Mountain & Western Frontier

14 Days from $1658*COLORADO - WYOMING - SOUTH DAKOTA - MONTANA - UTAH

Plus...Yellowstone National Park

Depart July 10 & August 14, 2013Your tour begins and ends in the “Mile High City” of Denver, followed by Cheyenne, WY. The next two days you will visit Fort Laramie; Mount Rushmore and Crazy Horse Memorial in South Dakota. Then return to Wyoming with a stop in Deadwood, continuing through the Black Hills to Little Big Horn Battle�eld and the Bu�alo Bill Historical Center. Then you will depart for Yellowstone National Park (two days) with extensive sightseeing, including Old Faithful and Hayden Valley. Your journey continues to Grand Tetons National Park with spectacular landscape; Jackson Hole, WY; Salt Lake City, UT with a city tour including the Great Salt Lake and opportunity to witness the Tabernacle choir rehersal. Then travel West visiting the Utah Field House Museum; Dinosaur National Monument and explore the vast variety of fossils and Rocky Mountain National Park including a drive through the park on Trail Ridge Road.

FARM SAFETY LESSONS

Above: John Lee, left, safety specialist with Grain & Feed Asso-ciation of Illinois provides farm safety information to partici-pants at a safety workshop recently hosted by the Livingston

and McLean CountyFa rm Bu r eau s a ndPrairie Central Co-opat the Asmark Agri-center in Bloomington.

About 70 farmers learned about grain bin safety and rescues,grain dust dangers, and safety tips for working with anhydrousammonia. Right: A safety dummy is engulfed in plastic beadsthat simulate grain in the Agricenter’s grain bin. Kevin Runklewith the Illinois Fertilizer and Chemical Association also pro-vided training. (Photos by Teresa Grant-Quick, LivingstonCounty Farm Bureau manager)

from the counties

Page 13 Monday, February 11, 2013 FarmWeek

BUREAU — TheYoung Leaders Com-

mittee will sponsor a farmlabor pool listing for BureauCounty. Contact the FarmBureau office at 875-6468 oremail jillfrueh.bcfb@com-cast.net to submit labor infor-mation by Feb. 28. Contactthe Farm Bureau office afterFeb. 28 to request a copy ofthe labor pool listing.

CHAMPAIGN — TheFarm Bureau Equine

Committee will sponsor aChampaign equine adventurefrom 8 a.m. to 12:30 p.m. Sat-urday, Feb. 23, at the TonyNoel Building at ParklandCollege. Cost is $5. The eventwill include speakers, a ven-dor area, and informationfrom riding clubs and animalrescue agencies.

CHRISTIAN — TheInternational Ag

breakfast will be at 7 a.m.Thursday, Feb. 21, at the U.S.Bank community room. Callthe Farm Bureau office at824-2940 by Thursday forreservations.

• The Farm Bureau Foun-dation trivia night will beMarch 23. Team registrationdeadline is March 15.

• Farm Bureau Foundationscholarship applications areavailable at christiancofb.com.Application deadline is March15.

CLARK — FarmBureau Young Leader

Committee will host a pizzaparty at 7 p.m. Tuesday, Feb.26, at the Farm Bureau office.Members under the age of 40may attend. Call the FarmBureau office for reserva-tions.

CLAY — Farm Bureauwill sponsor a bus trip

from 5:30 a.m. to 8:30 p.m.Thursday to the NationalFarm Machinery Show inLouisville, Ky. The trip is freefor Farm Bureau membersand will cost non-members$25 or the purchase of aFarm Bureau membership.The trip will include dinner atthe Logg Inn in Haubstadt,Ind. Call the Farm Bureauoffice at 665-3300 or emailclaycofb@bspeedy.com forreservations or more infor-mation.

• Farm Bureau will host amarket outlook meeting at6:30 p.m. Tuesday at theFarm Bureau office. DaleDurchholz, AgriVisor marketanalyst, will be the speaker.Call the Farm Bureau officeat 665-3300 or email clay-cofb@bspeedy.com forreservations or more infor-mation.

• Farm Bureau and Coun-try Financial will sponsor anestate planning seminar atnoon Friday, Feb. 22, at theFarm Bureau office. Jim

or more information. • Farm Bureau will sponsor

an estate planning seminar at11 a.m. Monday, Feb. 25, atGil’s Supper Club in HannaCity. Rick Morgan, seniorfinancial security consultantwith Country Financial, willbe the speaker. Call the FarmBureau office at 686-7070 orCountry at 686-7050 forreservations.

STARK — Farm Bureauwill sponsor a trip to

the Quad City Botanical Cen-ter for a chocolate tour from9 a.m. to 3 p.m. Wednesday,March 20. Cost is $60. Callthe Farm Bureau office at286-7481 for reservations byMarch 8.

STEPHENSON —Farm Bureau will spon-

sor an Internet basics classfrom 7 to 9:30 p.m. Monday,March 11, and a basic Wordand Excel class from 7 to 9:30p.m. Tuesday, March 12, at theFarm Bureau office. Classesare free for members, $10 perclass for non-members, or $15for both classes for non-mem-bers. Call the Farm Bureauoffice at 232-3186 to register.

• Farm Bureau will sponsora bus trip Wednesday, March

20, to the John Deere TractorWorks and Engine Works inWaterloo, Iowa. Cost is $30for members and $40 for non-members. Call the FarmBureau office at 232-3186 byMarch 13 for reservations.

• Farm Bureau will sponsora defensive driving class from10 a.m. to 3 p.m. Wednesday,and Thursday, April 24 and25. Cost is $15 for membersand $25 for non-members.Call 232-3186 to register.

VERMILION —Farm Bureau Foun-

dation will host a “Luau forLearning” trivia night at7:30 p.m. Saturday, March2, at the Danville Knightsof Columbus Hall. Regis-tration is $100 per table ofeight. Proceeds will benefitthe Ag in the Classroomprogram.

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

Hughes, financial securityconsultant for CountryFinancial, and a local attor-ney who specializes in estateplanning will be the speakers.Call the Farm Bureau officeat 665-3300 or email clay-cofb@bspeedy.com for reser-vations or more information.

LEE — Farm Bureauwill sponsor a com-

mercial driver’s licensescreening from 8 a.m. tonoon Friday, Feb. 22, at theFarm Bureau office. Cost is$60 for a medical card exami-nation and $50 for a drugscreening. Call the FarmBureau office at 857-3531 oremail leecfb@comcast.net.

• Farm Bureau member-ship appreciation dinner willbe at 6 p.m. Tuesday, Feb. 19,at the Amboy CommunityBuilding. U.S. Rep. AdamKinzinger (R-Manteno) willbe the speaker. Call the FarmBureau office at 857-3531 oremail leecfb@comcast.net forreservations or more infor-mation. Reservation deadlineis Monday.

• Country Financial willsponsor a farm estate plan-ning seminar from 11 a.m. tonoon Wednesday, Feb. 27, atthe Farm Bureau office. RickMorgan, Country Financialsecurity consultant, and DanHawkins, local attorney, willbe the speakers. Call the FarmBureau office at 625-4876 oryour local Country Financialrepresentative for reserva-tions.

LIVINGSTON — TheMarketing Committee

will host Agronomy Day from8:45 to 3:30 p.m. Tuesday,March 5, at the LivingstonCounty Extension office inPontiac. Certified crop advisercontinuing education units willbe available in nutrient man-agement, integrated pest man-agement, and crop manage-ment. Call the Farm Bureauoffice at 842-1103 or emaillivcfb@yahoo.com to register.

MCDONOUGH —Farm Bureau will

sponsor a grain safety trainingfrom 9 a.m. to 4 p.m. Tuesday,Feb. 26, at the Spoon RiverCollege Community OutreachCenter. Contact the FarmBureau office at 837-3350 orat {mcdonoughcountyfarm-bureau.org} for reservations.

MACOUPIN —Macoupin and Mont-

gomery County Farm Bureauswelcome O’Reilly Auto Partsin Litchfield as a new memberbenefit provider. Memberswill receive a 10 percent dis-count on farm, auto, lawn andmarine parts and supplies.Membership card must beshown at time of purchase.

• Farm Bureau Foundationscholarships are available forstudents who will continue

their education in an ag-relat-ed field. Contact the FarmBureau office at 854-2571 foran application or more infor-mation. Deadline to returnapplications is March 22.

MONTGOMERY —Farm Bureau will

sponsor a trip Saturday, April16, to see The American Pas-sion Play at the BloomingtonCenter for Performing Arts.Call the Farm Bureau office at532-6171 for more informa-tion.

PEORIA — The PeoriaCounty Soil and Water

Conservation District annualmeeting will be at 8 a.m. Sat-urday at the Brimfield HighSchool. Call 671-7040 fortickets.

• John Roach, market ana-lyst, will speak at Expo Gar-dens at 8:30 a.m. Monday,Feb. 18. Doors will open at 8a.m. There is no cost for theprogram. Call the FarmBureau office at 686-7070 forreservations.

•Farm Bureau Young Lead-ers will tour the KeystoneSteel and Wire at 1 p.m. Fri-day, Feb. 22. Members 18 to35 may attend. Call the FarmBureau office for reservations

profitability

FarmWeek Page 14 Monday, February 11, 2013

USDA

Farm ServiceAgency

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn1/31/13 53.9 15.2 5.31/24/2013 40.9 22.3 21.4Last year 39.9 17.1 40.4Season total 1004.6 599.8 311.2Previous season total 758.3 674.7 712.0USDA projected total 1345 1050 950Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $32.25-$56.61 $43.11 40 lbs. NA NA

Receipts This Week Last Week 58,604 100,905*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 $85.63 $85.91 -$0.28 Live $63.37 $63.57 -$0.21

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

Steers NA $124.89 NAHeifers $125.00 $125.00 $0.00

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 $145.43 $146.27 -$0.84

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

Slaughter prices - Negotiated, Live, wooled and shorn 135-200 lbs. for87.50-130 $/cwt. (wtd. ave. 114.92)

MARKETING ASSISTANCE LOANS — The marketingassistance loan (MAL) and loan deficiency payment (LDP) provi-sions authorized in the 2008 farm bill have been extended for the2013 crop year, Scherrie Giamanco, Farm Service Agency (FSA)state executive director, announced.

MALs and LDPs provide financing and marketing assistancefor wheat, rice, feed grains, soybeans and other oilseeds, peanuts,pulse crops, cotton, honey, and wool.

Assistance is available to eligible farmers beginning with har-vest or shearing season and extending through the program year.The 2013 mohair crop is not eligible for MALs or LDPs.

MALs provide farmers interim financing at or after harvest tomeet cash flow needs. A farmer who is eligible but agrees to for-go the loan may obtain an LDP if such payments are available.

For more information, visit your local county FSA office.NEW HOURS FOR FIVE FSA OFFICES — Five local

FSA offices will be open one day each week, effective Feb. 18.The offices in Boone, Calhoun, Pulaski-Alexander, and

Williamson counties will conduct business each Wednesday. Theoffice in Wabash County will be open each Thursday.

The change applies only to the FSA office and will not affectany other agency located in the USDA Service Center.

FSA customers in the affected counties are encouraged totransfer their farms to an adjacent county office to continue five-day-a-week service. To initiate the transfer, contact either theoffice in which the county is located or the applicable county towhich the farm will be transferred.

Used oil analysis should be part of routine maintenance programBY TOM DREW

Used oil analysis is a system-atic approach to monitoringequipment performance. Asample of the oil is taken andsent in for analysis. Theresults are then sent back tothe person who submitted thesample. The analysis includesphysical property tests and

wear metal analysis. There are many advantages

to including used oil analysis aspart of your routine mainte-nance program.

Those include:•Establish safe and proper

drain intervals.•Reduce unforeseen break-

downs.

•Reduce down time.•Reduce the number of oil

changes and labor costs.•Provide

overall main-tenance sav-ings.

•Providelonger equip-ment life.

•Eliminateunnecessaryoverhauls.

•Providebetter fuel mileage.

•Provide support for equip-ment warranty claims.

The drain plug method isthe simplest way to obtain asample for analysis. Take thesample after the engine hasbeen operated at normal oper-ating temperature for severalhours. Let a small amount ofoil drain out before catchingthe sample to be sent to thelaboratory. This ensures that

any contamination surround-ing the drain plug will not bepresent in the sample andinfluence the test results. Nev-er take samples from the drainpan.

Wear metal tests are used tointerpret the condition of theequipment components.There are certain combinationsof elements that indicate prob-lems. Tin, lead, and coppermay all indicate bearing wear.Iron combined with chromiumusually will indicate liner andring wear, possibly along withaluminum, which would alsoindicate piston wear.

Silicon can usually be tracedto a faulty air intake systemwhich is allowing raw air intothe combustion chamber. Thisair carries with it dirt or sandthat can destroy the inside ofan engine.

Boron and sodium arecomponents of ethylene glycol

and usually indicate antifreezeis present. This is usually theresult of a blown head gasket,leaky oil cooler, or a crackedblock.

Soot level is an indicator ofcombustion efficiency. Oxida-tion is a measure of the effec-tive service life of the oil.Nitration measures nitrogencompounds in the oil resultingfrom blow-by past the com-pression rings. High levels ofZDDP (zinc dialkyl dithiophosphate) depletion indicatethat the additive is being usedup. Water and fuel dilutionalso are measured. Changes inviscosity indicate improperservicing, dilution, or contami-nation and lubricant break-down in service.

Tom Drew is GROWMARK’slubricants marketing manager. Hisemail address istdrew@growmark.com.

Tom Drew

Farmland market could tighten; prices projected to remain highBY DANIEL GRANTFarmWeek

Farmland prices, whichhave skyrocketed in recentyears, aren’t expected to crashback to earth any time soon.

Record-high land priceshave been driven in part byrecord demand and strongfarm income. And those trends areexpected to continue thisyear, although the possibilitylater this year of big cropsand lower commodity pricescould slow the farmland mar-ket.

“Record demand for landcontinues, along with recordincome, cash rents, and landvalues,” said Roger Hayworth,area sales manager for FarmersNational Co. in Illinois andfive other states. “This trendlikely will continue in 2013.However, if the agriculturaleconomy shifts, some levelingwill take place.”

Eric O’Keefe of The LandReport, a nationwide publica-tion dedicated to the land mar-ket, said agriculture and thefarmland market have beenbright spots of the U.S. econo-my the past five years.

He believes land pricescould taper off this year ifworld demand for ag prod-ucts declines or commodityprices fall, but a major crashin land values is highlyunlikely.

“I think the market will staystrong,” O’Keefe said. “I’mnot a big believer in the bubbleconcept. Farmland is only asvaluable as its income-produc-ing component.”

USDA recently estimated

the value of farm assets for2012 ($2.54 trillion) and farmequity ($2.27 trillion) were atrecord-high levels.

U.S. farmland values subse-quently increased 11 percentlast year, USDA reported.Top prices for high-qualityland in Illinois last year aver-aged $12,000 per acre, withsome individual sales generat-ing much more than that,according to Farmers Nation-al Co.

“The continuing rise infarmland values indicates thatit is viewed as a good invest-ment and the low interest ratessuggest funds are available forwell-qualified borrowers,”USDA reported.

The amount of farmlandavailable for purchase this year

is expected to be tight, though,as many sellers cashed outbefore new tax laws tookeffect.

If the supply of farmland istight, it could keep pressure onthe market.

“Pure economics shoulddictate that values rise if thesupply of available land tight-ens,” said Derrick Volchoff,vice president of real estateoperations for FarmersNational Co.

The strength of the farm-land market in the Corn Belthas pushed prices up in sec-ondary markets, O’Keefe not-ed.

But there is a growing dis-parity between values for crop-land and livestock properties,he added.

‘Record demand for land continues, alongwith record income, cash rents, and land val-ues. This trend likely will continue in 2013.’

— Roger HayworthFarmers National Co.

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

Bloomington, Illinois

AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

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

CASH STRATEGISTCorn Strategy

ü2012 crop: Even thoughcorn prices slipped last week, itstill looks as though the marketis in a broad, corrective pattern.We’d still target a move to$7.75-$7.85 on March futuresfor catch-up sales. Plan to addto sales if prices reach that lev-el. Check the Hotline.

ü2013 crop: The positivesof the old-crop situation willhelp support new-crop prices.But this past week’s breakstrengthened $5.90-$6 resist-ance on December futures.Plan to add a sale if Decemberhits that level. Check the Hot-line.

vFundamentals: Evenwith the tight old-crop situa-tion, corn prices may struggleto go higher unless conditionsin the U.S. Southern Plainsremain poor when the wheatcrop breaks dormancy in thespring. Even then, poor exportand ethanol demand continueto undermine the potential forextreme tightness for old-cropsupplies.

Soybean Strategyü2012 crop: South Ameri-

can weather remains the domi-nant feature guiding the trade.But if that weather shifts, therally is likely to stall. Priceanother 10 percent if Marchfutures hit $15.15.

ü2013 crop: Use a rally to$13.15 on November futuresfor catch-up sales. Sales wereincreased 10 percent last week.

vFundamentals: Lastweek’s supply and demandreport proved to be “much adoabout nothing.” Brazil predict-ed an 83.4 million-metric-ton(mmt) (3.08-billion-bushel)crop on Thursday. USDA fol-lowed up with an 83.5 mmtestimate (3.09-billion-bushel).The Argentine crop was fore-cast at 53 mmt (2 billionbushels). But the Buenos AiresGrain Exchange estimated theArgentine crop at 50 mmt (1.8billion bushels). Dryness inArgentina is the primary con-cern of the trade. Still, persist-ent showers in northern Brazilare slowing early harvest,diverting some business to theU.S. Our export pace contin-ues to suggest the final exportnumber will be slightly higherthan forecast.

ûFail-safe: If March soy-beans close below $14.40, makethe old-crop sale.

Wheat Strategyü2012 crop: Wheat prices

look as though they have estab-lished a short-term low andcould shift into a sideways-to-higher pattern. If ChicagoMarch can penetrate $7.69, itcould rally to $7.84. Be patienton making catch-up sales.

ü2013 crop: Plan to makecatch-up sales with ChicagoJuly trading above $7.84.

vFundamentals: TheFebruary USDAsupply/demand report was a

little friendly for wheat, withthe U.S. ending stocks reducedto 691 million bushels —below trade expectations. Butthat was countered in part bythe lack of change in the worldending stocks. Talk persistsabout India exporting morewheat to make room for itsnew crop, a crop that’s expect-ed to again exceed India’s ownneeds. U.S. Southern Plainsweather is a key feature.Short-term forecasts includedlimited rain and snow. Signifi-cant moisture is needed whenthe crop breaks dormancy tokeep it from being a failure.

Cents per bu.

Brazil now a U.S. corn competitorBrazil has long been an

aggressive competitor in theworld soybean trade. But inrecent years, it has become aviable competitor in the worldcorn trade, production permit-ting.

Part of the change has comewith a steady increase in Brazil’ssecond corn crop, mostly grownin Mato Grosso, the area of thecountry that has enjoyed muchof the expansion in soybeanacreage in recent years.

But the big shift came in the2000/2001 marketing year withsignificantly higher yields. Thatwas a result of producers shift-ing to seeds with better genetics,along with generally better pro-duction practices.

The average yield jumpedfrom 38.5 bushels per acre inthe 1990s to an average of 59.5bushels since. Last year’s yieldwas just short of 75 bushels peracre.

Production jumped from a25 million to 30-million-metric-ton (mmt) level in the 1990s tomostly a 40 mmt-plus level.Last year’s output hit 73 mmt(2.8 billion bushels).

In the 1990s, domestic feeddemand in Brazil hovered near30 mmt, necessitating smallimports in those years when

production fell short of needs.Since 2000, feed demand hasgrown, but not nearly as fast asproduction, leaving more grainavailable for export.

Looking at the chart above, itis interesting to see the pace ofcorn exports is relatively sub-dued until mid-summer. Theinference one would draw isthat much of the first crop cornis used by livestock feeders.

The second crop appears tohave become the crop destinedfor the export sector. Much ofthat may be tied to the exportcapacity constraints, with capac-ity in the spring/summer mostlyused to export soybeans, soy-bean meal, and sugar.

But the corn export push inthe second half of the year putsmuch of Brazil’s supply ontothe world market at a time whenthe U.S. typically is getting start-ed on a new-crop export cam-paign.

Over the past six months,Brazil’s exports have averaged3.27 mmt, nearly 2.5 mmt high-er than the prior year’s average,or 80 million bushels a month.That’s 80 million bushels permonth that didn’t need to comefrom the U.S., nearly 500 millionbushels in total.

That helps explain why thisyear’s U. S. corn exportsdropped below 1 billion bushelsfor the first time since1971/1972. Furthermore, it’s aforce we may have to deal within the future.

PROFITABILITY

Page 15 Monday, February 11, 2013 FarmWeek

perspectives

FarmWeek Page 16 Monday, February 11, 2013

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Our state needs more opportunitiesfor people to understand differentviewpoints and life experiences. That’swhy Illinois Farm Bureau’s Adopt-A-Legislator program does so much goodnow and will continue to in the future.

Many county Farm Bureaus havedeveloped strong relationships with

current and former“adopted” state law-makers. The program isintended to build long-term relationshipsbetween urban legisla-tors and downstatefarmers.

It “helps each under-stand a little betterwhere the other side iscoming from,”

explained Christina Nourie, IFB’snortheast legislative coordinator andoverseer of the program.

Case in point — the Jefferson Coun-ty Farm Bureau and Chicago DemocratSen. Kwame Raoul. Raoul will play akey leadership role on some majorissues in the spring legislative session.

Back in October 2008, I watched asRaoul, his family, and several con-stituents toured Jefferson Countyschools, farms, businesses, and sights. Istill remember the Chicago group’slook of wonderment as they walkedthrough the halls of the tiny ruralMcClellan Grade School. Its entire stu-dent body could have ridden on oneschool bus.

A month later, Jefferson Countyfarmers and leaders thoughtfully lis-tened as two of Chicago’s Dyett HighSchool students showed how a studentjury is used to resolve a mock fightamong students on the city’s south side.It was much different than the wayconflicts are resolved at McClellanGrade School.

Through the Adopt-A-Legislatorprogram, the personal connections

Knowledge is a powerful tool. Put-ting it into action is even more impor-tant.

Recently, Illinois Farm Bureaulaunched new advisoryteams whose goalsinclude gaining knowl-edge, investigating, andsharing informationabout specific issuesand policy questions.

The Strength WithAdvisory Teams(SWAT) will help pre-pare our organizationto understand, influ-

ence, and adapt to the changing reali-ties of farming, the rural economy, andrural family life.

Our members are our strength.Member involvement in identifying andshaping IFB’s future is the driving forcebehind our grassroots policy.

We created SWAT to capture ourmembers’ strengths and furtherenhance IFB policy development and

implementation. In turn, IFB will be ina better position to represent the viewsof you, our members.

Each advisory team will study spe-cific issues and policy questions. Thoseissues may be surfaced by team mem-bers, referred to the team by the IFBpresident or board of directors,requested for study by the IFB Resolu-tions Committee (RC), or identified bythe IFB governmental affairs and com-modities staff.

The three teams are: conservationand natural resources, farming produc-tion and marketing, and local and stategovernment.

Each team will identify and researchissues related to farmers, productionpractices, rural life, and other agricul-tural-related topics. The teams will pro-vide their vision on those issues to theIFB board.

Teams will assist in policy analysisby providing input to the RC throughin-depth issue reviews.

Perhaps most importantly, the team

members will be leaders who areinformed on issues, regulations, andlegislation. These knowledgeable lead-ers may work on key issues and serve asa sounding board for our organizationand its policy.

Not only will these teams help ourstate organization, but we also envisionthem strengthening our county FarmBureaus with potential leaders andknowledgeable experts.

We want the team members to applytheir knowledge and experiences andtake ownership of the challenging andcomplicated issues facing our industry.

Each team has been assigned abroad subject area, but members willbe able to target specific issues as need-ed. Those needs may include quick pol-icy input from time to time.

Some of you may wonder how theSWAT program differs from othermember-leader teams.

One major difference is the 60 adhoc advisory groups on special inter-ests. We have nearly 100 members with

special knowledge and interests in spe-cific subject matter. Some leaders areserving on multiple ad hoc groups. TheSWAT teams may seek additional infor-mation or input from the ad hocgroups.

Another difference in the SWATorganization is an extended, but stag-gered, term of service. That will allowmembers the opportunity to continuebuilding on their knowledge base whileproviding leadership continuity to theteams.

Agriculture is a diverse industry withdiverse challenges and opportunitiesahead. Diverse knowledge and strengthwill be required to move the industryforward.

We envision SWAT empowering andtapping our organization’s strength —its members.

Mark Gebhards is the executive director ofthe Illinois Farm Bureau governmental affairsand commodities division. His email addressis MGebhards@ilfb.org.

KAY SHIPMAN

MARKGEBHARDS

SWAT: Empowering our members, organization

State Sen. Kwame Raoul (D-Chicago), right, chats with leaders of the Jefferson County Farm Bureau and Illinois Farm Bureau during atour of his legislative district last summer. (FarmWeek file photo)

build relationships that continue assome adopted legislators move intoleadership positions or other electedoffices. Some relationships date back tothe beginning of the program in 2001.

Former state Sen. Miguel del Valle,for example, stayed in contact with his

adopted county Farm Bureau even afterhe began serving as Chicago’s cityclerk.

Here’s a big pat on the back for the73 county Farm Bureaus and the legis-lators who are involved with theAdopt-A-Legislator program. Stay

engaged. Our state needs understand-ing of different perspectives moretoday than ever before.

Kay Shipman is the editor of legislativeaffairs for FarmWeek. Her email is kay-ship@ilfb.org.

‘Adopted’ lawmaker program aids understanding

Letter to the editor policy