FarmWeek July 19 2010

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Monday, July 19, 2010 Two sections Volume 38, No. 29

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

WIND FARM PROJECTSdon’t harm property values, accord-ing to two studies presented lastweek at the Advancing Wind Powerin Illinois conference. .....................3

NEW WRINKLES have devel-oped as debate continues over newenergy legislation and whether toextend the soon-to-expire federalethanol blenders tax credit. ..............5

ILLINOIS AG LEADERSlast week pushed lawmakers inWashington to move on tradeagreements with South Korea,Panama, Colombia, and Cuba. ....4

RC eyes proposal to rein in federal regulatorsBY MARTIN ROSSFarmWeek

Amid concerns about feder-al control of the nation’s air andwater, Illinois Farm Bureau’sResolutions Committee (RC) iseyeing proposals to limit whatRC leader Brian Duncan sees as“the excessive power given toregulatory agencies.”

The RC is considering aVermilion County FarmBureau policy proposal thaturges Congress to set newguidelines for and restraints onregulatory agencies.

Lawmakers should provide“strong congressional over-sight of regulatory and signifi-cant agency actions as well asa willingness to override unac-ceptable agency actions,” theproposal states.

The U.S. EnvironmentalProtection Agency (EPA)heads the list of agencies underthe RC microscope. Duncan,RC Natural Resources Sub-committee chairman, citesEPA’s current focus on green-house gas (GHG) controls —according to Vice ChairmanAlan Chesnut, an example ofofficials “overstepping theirbounds” with possible conse-quences for ag input costs.

“We could be headed

able woody biomass energy.”Senate Majority Leader Harry

Reid (D-Nev.) last week met withkey committee chairmen to mapout potential energy/climate leg-islation. U.S. Rep. Jay Rockefeller(D-W.Va.) continues to push atwo-year moratorium on EPAregulation of non-transportation“stationary” GHG sources.

That would delay “that nextstep to regulate farms and ranch-es” while giving Congress time

to reach possible climate consen-sus, Krause said. Time nonethe-less could run short should law-makers choose to move energy-climate measures during a post-election lame-duck session.

“We certainly feel any bill,whether it’s energy-only or hascaps, has to have some provi-sion that would pre-empt EPAfrom regulating greenhousegases under the Clean Air Act,”Krause said.

toward some choices thataffect our finances,” Chesnutwarned. “(EPA) has no checksor balances within that areawithout legislative action.”

The Vermilion County pro-posal supports more vigorousscrutiny to prohibit agenciesfrom “administering laws” andadopting rules and actions “thatcircumvent statutory intent.” Itspecifically targets EPA rule-making authority.

American Farm Bureau Fed-eration regulatory specialist RickKrause sees a significantincrease in EPA rulemaking on anumber of fronts, from green-house emissions reporting andvehicle GHG compliance tolivestock manure managementand new water quality parame-ters for East Coast farmers.

As rulemaking assumesmore of Congress’ traditionallawmaking role, policiesbecome “less and less tied toreality and legality,” Krause toldFarmWeek.

EPA’s “tailoring rule,” allow-ing it to identify specific indus-tries and businesses subject toor exempt from rules, raisestroubling concerns about indi-vidual state authorities, he said.

Congress recently providedlivestock producers a temporaryreprieve from some newrequirements. Last year’s appro-priations legislation withheldfunds for enforcement of new

manure management rules,though operations could beexposed after fiscal 2010 spend-ing measures expire Oct. 1.

Meanwhile, bipartisan con-gressmen recently challengedEPA proposals to treat GHGemissions from renewable bio-mass roughly the same as fossilfuel emissions. Rep. Greg Walden(R-Ore.) called the agency’s move“an absurd effort to stop thedevelopment of clean and renew-

SAGE SAYING

Tom Zachary, a LaSalle County Farm Bureau member from Ottawa who has farmed since 1948, dis-plays a Case Farm Machinery sign he acquired from a dealership that went out of business in GrandRidge. Zachary, who restores Case tractors and displayed them recently at Historic Farm Days in Pen-field, also posted a sign that reads, “Caution: Old tractors are hazardous to your wealth.” See moreon antique tractors on page 9. (Photo by Daniel Grant)

BY KAY SHIPMANFarmWeek

Illinois’ wind energy industry continuesto grow with more and larger wind farmsand promising supply and education sec-tors.

While some wind energy supportersseek to protect the state’s homegrownindustry, federal officials want regionalcooperation in planning for national pow-er transmission.

Those issues and many others relatedto the wind industry were debated lastweek during the Advancing Wind Powerin Illinois conference at the Peoria CivicCenter. The meeting was hosted by the

Illinois Wind Working Group and IllinoisState University’s (ISU) Center for Renew-able Energy.

The federal government is seeking toensure the nation can integrate large quan-tities of electricity from variable powersources, such as wind farms, into the pow-er grid, said John Schnagl, director oftransmission adequacy with the Depart-ment of Energy (DOE).

“We face challenges, not insurmount-able challenges, but they won’t be easy,”Schnagl told conference participants.

Schnagl emphasized the federal gov-ernment wants regional cooperation andcoordination of power development and

transmission. A steering committee plan-ning for the eastern half of the U.S. metfor the first time in Chicago last week.

Schnagl urged conference participantsto participate in any subcommittees and tobe sure their sectors were represented inthe planning process.

Illinois electricity suppliers have moreimmediate concerns.

By late August, the Illinois PowerAgency is expected to unveil the firstlong-term, 20-year power purchase agree-ments for ComEd and Ameren. At ques-tion is how much power will be bought

See Wind, page 3

Illinois, U.S. wind industry facing challenges

REFORMS TO AFFECT AG LENDERS? — Assweeping financial reform legislation heads to the presi-dent’s desk, ranking Senate Ag Committee RepublicanSaxby Chambliss (R-Ga.) suggested new deriva-tives/swaps provisions could adversey affect future aglending.

The measure approved by the Senate last week willforce banks to spin off some swap trading derivativesoperations, allowing them to retain the bulk of theirbooks but barring them from commodity and other“riskier” derivatives.

“This legislation would force the Farm Credit Systeminstitutions to run their interest rate swaps through a‘clearinghouse,’ which will result in additional costs, inthe form of higher interest rates to their customers,”Chambliss maintained.

“And let me be clear on who this will ultimatelyaffect. It is very clear that our farmers and ranchers, ourelectric cooperatives, and our ethanol facilities, who seekfinancing from these institutions, will bear this burden.”

IPPA PRODUCERS DONATE PORK — Severalpork producers donated more than 2,800 pounds ofground pork to a Central Illinois food bank in Spring-field last week as part of the “Pork Power: Partnering toFight Hunger in Illinois” initiative.

In 2008, the Illinois Pork Producers Association(IPPA) launched Pork Power with the goal of helpingfight hunger in Illinois. It provides a system for farmersto donate pork to food banks associated with FeedingIllinois, a partner to Feeding America — the largesthunger relief organization in the U.S.

IPPA has partnered with the Illinois Corn Market-ing Board, the Illinois Soybean Association, and the Illi-nois Association of Meat Processors in this effort. Injust two years, Pork Power has generated more than124,500 pounds of pork — enough for 500,000 servings— for families throughout Illinois.

FARMERS AT RISK — Americans who work infarming and food service may face greater risk factorsfor heart disease, diabetes, and stroke, according to theNational Nutrition Examination Survey. The studyshows health professionals, scientists, and artists areamong those with the lowest rates of so-called metabol-ic syndrome.

Metabolic syndrome refers to a collection of risk fac-tors for diabetes, heart disease, and stroke —- includingabdominal obesity, high blood pressure, high blood sug-ar, low levels of “good” HDL cholesterol, and hightriglycerides.

The national survey shows farm workers and foodservice workers (other than waiters and waitresses) hadthe highest rates of metabolic syndrome at 30 percent.That compares to an overall U.S. risk of about 22 per-cent, according to the survey.

FarmWeek Page 2 Monday, July 19, 2010

(ISSN0197-6680)

Vol. 38 No. 29 July 19, 2010

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

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© 2010 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

Daniel Grant ([email protected])Editorial Assistant

Linda Goltz ([email protected])Business Production Manager

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Richard VerderyClassified sales coordinator

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

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

Quick TakesSTATE

Illinois Farm Bureau President Philip Nelsonand IFB Vice President Rich Guebert Jr. willconduct five regional Farm Talk meetings laterthis year throughout the state.

Dates, times, and locations are:• Wednesday, Aug. 18, 5:30 p.m., Sangamon

County, Sangamon County Farm Bureau, 2631Beechler Court, Springfield.

• Monday, Aug. 30, 11 a.m., EffinghamCounty, Joe Thoele farm, 13550 N. 2100 St.,

Teutopolis; 5:30 p.m., Williamson County, JohnA. Logan College, 700 Logan College Rd.,Carterville.

• Wednesday, Sept. 1, 11 a.m., WarrenCounty, American Legion Post 136, 1110 N.11th St., Monmouth; 5:30 p.m., LaSalle County,Pitstick Pavilion, 3401 N. State Rt. 23, Ottawa.

You may register by contacting your countyFarm Bureau or the IFB president’s office at 1-800-676-3217.

Farm Talk meetings slated around state

Quinn signs measure

Bill expands livestock board duties BY KAY SHIPMANFarmWeek

Gov. Pat Quinn signed legislation last weekexpanding the responsibilities of the state Advi-sory Board of Livestock Commissioners toensure the well-being of poultry and domesticanimals, including cats and dogs.

“It is important that all animals — fromhousehold pets to livestock — are treated in amanner that is ethical andhumane, and this bill is animportant measure to ensurejust that,” Quinn said in a pre-pared statement.

Under SB 3604, sponsored bySen. Michael Frerichs (D-Cham-paign) and Rep. Brandon Phelps(D-Harrisburg), the livestockcommissioners became respon-sible for approving administra-tive rules related to the well-being of poultry and domesticanimals.

Board members also willwork to prevent, eliminate, and control diseasesthat affect those animals.

As chairman of the House Agriculture andConservation Committee, Phelps said he spon-sored the legislation, which takes effect immedi-ately, because it addresses important issues,including rules for animal diseases.

“I will represent my constituents and othersin agriculture on the board,” he said. “It’s also

important to have professionals at the table todeal with animal diseases.”

Illinois Farm Bureau, the Illinois Pork Pro-ducers Association, and the Illinois Beef Asso-ciation supported the legislation.

Under the law, the Illinois Department ofAgriculture (IDOA) will be required to submitrules and regulations involving animal welfareissues that the board previously did not oversee.

“The Illinois Department ofAgriculture is committed to thepositive well-being of all ani-mals, and we look forward toworking with the board on con-tinuing that effort,” IDOADirector Tom Jennings said.

IFB President Philip Nelsonsaid he was pleased Quinnsigned the legislation. “It’s agood approach to have peoplewith knowledge of livestockcare, such as farmers and veteri-narians, involved with the boardof livestock commissioners,”

Nelson said. The board has 25 members, including 17

appointed by the governor. Under the new law,each member appointed by the governor willserve a five-year term. Previously, there were noterm limits for the governor’s appointments.The governor also will have the authority toreplace inactive board members under the newlaw.

Wind farm assessment process extended,green energy funding OK’d by Quinn

Last week Gov. Pat Quinnremoved some uncertainty forthe state’s wind energy indus-try by signing legislationextending the current propertytax assessment system for windfarms.

HB 4797, sponsored byRep. Frank Mautino (D-SpringValley) and Sen. Don Harmon(D-Oak Park), extends the cur-rent uniform assessment sys-tem through 2016 and pre-vents it from ending on Dec.31, 2011. Illinois Farm Bureausupported the bill.

Before the state adopted auniform system, county super-visors of assessment used var-ied methods to assess windfarms, causing problems formulti-county projects.

The governor last week alsosigned legislation that giveslocal governments the authori-ty to offer special financing forgreen energy improvements inunincorporated areas.

‘ I t i s i m p o r t a n tthat all animals —f rom househo ldpets to l ivestock— are treated in am a n n e r t h a t i se t h i c a l a n d h u -mane.’

— Gov. Pat Quinn

Quinn signs honey billGov. Pat Quinn recently signed legislation that allows bee-

keepers to sell raw honey without having to meet stringentprocessed food requirements.

Illinois Farm Bureau supported SB 2959, which was spon-sored by Sen. David Luechtefeld (R-Okawville) and Rep. DanReitz (D-Steeleville).

The bill defined raw, unadulterated honey as an unprocessedagricultural commodity and not processed food.

The state requires processed foods to be prepared in akitchen certified by the Illinois Department of Public Health.

increased property taxes col-lected from the improvedproperties.

However, a recent federalannouncement has cooledsome interest in the programacross the nation. The FederalHousing Finance Agencydeclared that residential PACEfinancing programs do notmeet the financial require-ments of the federal mortgagegiants Fannie Mae and FreddieMac.

HB 4758, sponsored byRep. Michael Tryon (R-CrystalLake) and Sen. Pamela Althoff(R-Crystal Lake), expandsexisting law for PropertyAssessed Clean Energy(PACE) financing.

Under PACE financing, amunicipality can sell bonds toraise money to make loans forrenewable energy systems orenergy efficiency improve-ments outside their bound-aries. The loans are repaid by

WIND ENERGY


Continued from page 1from Illinois wind power providers.

“The in-state (wind power preference) is sun-setting in 2011, so the winning (power source)bidders may come from out of state,” said KateTomford of the Illinois Energy Office. Legisla-tion to extend the in-state preference provisionfailed in the spring legislative session.

That failure means the future of the state’swind industry is threatened by out-of-statepower firms, especially existing Iowa windfarms, warned Barry Matchett with the Envi-ronmental Law and Policy Center.

“Without an in-state wind preference, Iowawind would be bought and the Illinois windindustry would suffer,” Matchett said.

But Jonathan Fiepel, the deputy director ofthe Illinois Energy Office, questioned whetherout-of-state wind power would flood Illinois’transmission lines.

“We have transmission constraints (in Illi-nois). All this talk about of importing energyfrom out West or Iowa — there are constraintsin transmission,” Fiepel noted.

Transmission line constraints are occurringin the state’s windiest areas and slowing thebuilding of projects, added ISU’s Dave Loomis.

From the federal perspective, states mustwork together to address transmission short-ages and the nation’s energy needs, according toDOE’s Schnagl.

“Each state is struggling with issues, lookingat the economics of developing (power) indus-try within the state,” Schnagl said.

“Each state is struggling with public utilitycommissions to keep rates down. States shouldget together and talk about common interestsand how to meet those objectives that will allowthose industries to prosper, but also keep therates down,” he said.

Wind

Studies: Wind farms don’t harm property valuesBY KAY SHIPMANFarmWeek

Wind farm projects don’tharm property values, accord-ing to two studies presented atthe Advancing Wind Power inIllinois conference last week.

Both studies, a national onethat included Lee County, Ill.,data and another focused on aMcLean County wind farm,did not find long-term nega-tive impacts to property values.

Both did find a similarshort-term impact only toproperties that were closest toa proposed wind farm. Thoseproperties experienced a slightshort-term decrease in valuebut returned to their earliervalue after the wind farm con-struction was complete andoperation started.

Illinois State University’s(ISU) Center for RenewableEnergy conducted the McLeanCounty study, while theLawrence Berkeley NationalLaboratory in California con-ducted the national study.

“The assumption … is thatthere is an adverse effect toproperty values,” reported BenHoen with the Berkeley lab.“Any (short-term) impactsoccur very near the turbine.”The 176-page Berkeley studycovers 24 wind facilities in ninestates, including Illinois, andexamines 7,459 residentialproperty sales.

The ISU study analyzed3,951 property sales from Janu-ary 2001 through December2009 in a three-mile radius ofthe Twin Groves Wind Farm ineastern McLean County.

ISU examined sales beforeand after the wind farm startedoperating. The study also com-pared sales for the periodimmediately after the projectwas announced and up to thetime the wind farm startedoperating, explained DaveLoomis, ISU economics profes-sor.

Loomis found a short-termfluctuation of values in thethree-stage comparison of pre-wind farm, between projectannouncement up to the startof operation, and post-opera-tion.

Property values dropped 11.7percent after the county award-ed the construction permit, butthen bounced back up 11.7 per-cent after the wind farm startedoperating, according to Loomis.

He reported surroundingproperty values increased 17.2percent after the wind farmstarted operation.

ISU’s finding was corrobo-rated by the Berkeley study thatalso found a small drop in prop-erty values within a mile of aturbine, but those valuesreturned to the previous levelsafter construction, Hoen said.

“Prior to wind farm con-struction, there is a perceived

impact on property values andthat is the period of greatestrisk (for depressed propertysales),” Hoen said. He addedthe study found no negativeimpacts on property more thanone mile from a turbine —even if a turbine was visiblefrom the property.

Loomis agreed: “Propertyvalues increase after the windfarm started operating. Myadvice is don’t sell after (theproject announcement). That isthe low point in the market andyour property values won’t beaffected long term.”

ISU plans to publish itsstudy results.

A copy of the Berkeley study“The Impact of Wind PowerProjects on Residential PropertyValues in the United States” isavailable online at{http://eetd.lbl.gov/ea/ems/re-pubs.html}.

Be sure you are coveredon these wind project points

Landowners with wind power projects being proposed ontheir land and those with developed projects need to be familiarwith their county’s wind power development ordinances,according to Jerry Quick and Ryan Gammelgard, both attor-neys with Illinois Farm Bureau.

County ordinances are available by contacting the countyclerk or searching the county government’s website online.

Key points include:• Specific land involved in the project, length of agreement,

and length of development phase;• Landowner’s rights, including impact on farming operation

and conditions for terminating the lease; • Setback requirements for each wind turbine; • Project construction standards;• Deconstruction of turbines and required insurance; and • Compensation for land and any damage to crops and soil.Quick and Gammelgard advised landowners to work with a

lawyer who is familiar with wind power projects and not to signany contract until they are comfortable with it.

County Farm Bureaus will receive additional informationrelated to wind power development in the near future. — KayShipman

BY MARTIN ROSSFarmWeek

Illinois Farm Bureau’s policy-shaping Resolutions Committee(RC) hopes to find which way— or ways — the wind blowson rural electricity generation.

RC Natural Resources Sub-committee Chairman BrianDuncan reported the committeeseeks input from county FarmBureaus on “the impacts, posi-tive and negative” expandedwind energy could have on Illi-nois agriculture.

In November, the committeewill draft any necessary windpolicy proposals for Decemberdelegate consideration in St.Louis.

The RC also plans toreview wind energy issuessuch as turbine setbacks, infra-structure needs, health andsafety, and implications forcommunity growth. ExistingIFB policy recommends devel-opment of “minimumstatewide standards” that canbe applied as wind opportuni-ties spread across Illinois.

“Most of the state has beencontacted about wind energy,and as it becomes more effi-cient, as it requires less wind,more of the state will proba-bly be explored,” NaturalResources Vice ChairmanAlan Chesnut toldFarmWeek.

The RC prioritized windenergy discussion as PresidentObama endorsed Rock IslandDemocrat U.S. Rep. Phil Hare’sSecurity in Energy and Manu-facturing Act, which proposescontinued federal stimulus fund-ing specifically to encouragedevelopment of wind and otherrenewable energy infrastructure.

In a recent speech, Obamabacked passage of the bill,which would provide $5 billionfor the Advanced Energy Man-ufacturing Tax Credit program.

A new report by the Ameri-can Wind Energy Association(AWEA) board, the environ-mental/labor partnership Blue-Green Alliance, and the UnitedSteelworkers suggests the windindustry can create tens ofthousands of added jobs manu-facturing turbines and compo-nents if policymakers “create astable market for the domesticwind energy supply chain.”

The federal governmentmust “play its part by providingpolicy certainty and a nationalrenewable electricity standardas a clear signal for investorsthat this nation is committed torenewable energy for the longterm,” said new AWEA Presi-dent Vic Abate, GE’s renew-able energy chief.

Through July 30, the U.S.Department of Energy (DOE)will seek public input on aplanned Wind Energy Work-force Roadmap which wouldcover the current “workforcelandscape” in the wind industryand outline future steps neededto train and develop a work-force for the wind sector.

FarmWeekNow.com

RC seeks county inputon wind energy issues

Wind turbines, such as this one in McLean County, do not have a long-term negative impact on property values, according to new studies byIllinois State University and the Lawrence Berkeley National Laboratory.(FarmWeek file photo)

Learn more about windpower issues by going toFarmWeekNow.com.

GOVERNMENT


Nelson: Science an ally in antibiotics debateBY MARTIN ROSSFarmWeek

Despite continued head-lines and heated dialogue, Illi-nois President Philip Nelsonbelieves science is gaining onemotion regarding the live-stock antibiotics use issue.

Collinsville Republican U.S.Rep. John Shimkus’ HouseEnergy and Commerce healthsubcommittee last week field-ed testimony on the theoreti-cal impact on human antibiot-ic resistance of meat and oth-er products from treated ani-mals.

Legislation spearheaded byRep. Louise Slaughter (D-N.Y.) and the late Sen. EdwardKennedy (D-Mass.) seeks torestrict “sub-therapeutic” orpreventative use of antibi-otics. The bill would requireU.S. Food and Drug Adminis-tration re-review under new

the animals themselves.”But while he agreed “these

medically important antibi-otics” must be used judicious-ly, Clifford noted a federalInteragency Task Force onAntimicrobial Resistance isdeveloping a guidance docu-ment that will assess actualhuman health risks posed byfood and feed and offer riskmanagement advice. The doc-ument likely will be completedby October.

Over the last decade, swineproductivity has appearedunphased by a Danish ban onantibiotic use for “growth pro-motion,” according to PerHenriksen, head of the Dan-ish Veterinary and FoodAdministration Division forChemical Food Safety, AnimalWelfare, and Veterinary Medi-cinal Products.

But Singer told the House

subcommittee the number ofpig producers in Denmarkdropped from roughly 25,000in 1995 to less than 10,000 in2005, leaving “only those withthe highest productivity andefficiency.” That raises ques-tions about Henricksen’sassumptions, the scientist said.

Even “production” uses ofantibiotics “have the clear anddocumented effect of improv-ing animal health” and thuspotential consumer safety,Singer testified.

“Simply removing antibi-otics from use in animal agri-culture may help reduce someof the antibiotic resistance cir-culating today, but it mightalso have severe unintendedconsequences,” he said.

“The best way to manageantibiotic uses in animal agri-culture is through sound,rational, science-based policy.”

criteria of seven classes ofantibiotics used in both veteri-nary and human care.

The measure potentiallycould remove disease-fightingtools that also contribute toanimal feed efficiency andweight gain. Meeting withShimkus prior to the hearing,Nelson argued producers are“good stewards in not abusingthese antibiotics,” emphasizingstrict livestock drug withdraw-al periods aimed at protectingmeat consumers.

Randal Singer, a Universityof Minnesota associate profes-sor of epidemiology who hasstudied antibiotic uses andresistance for 12 years, toldlawmakers “all uses of antibi-otics improve animal health,and these improvements inanimal health can substantiallyimprove human health.”

“All the hype and media

have been saying we’re usingso many antibiotics in live-stock that it’s carrying overinto resistance factor forantibiotics in humans,” Nelsonsaid.

“Science has proven thatthat is not the case, but yetemotion is entering this dis-cussion. We need to be surewe keep science on our side inthis thing.”

While Nelson said support-ers of the antibiotics measure“don’t have the votes to movethe bill,” the issue continuedto gain headlines in majorpublications last week.

USDA Deputy Adminis-trator for Veterinary Ser-vices John Clifford suggest-ed “it is likely that the useof antibiotics in animal agri-culture does lead to somecases of antibacterial resis-tance among humans and in

Estate tax relief also crucialSound risk policies keyfor beginning farmersSound farm bill risk management policy is crucial for begin-

ning producers who lack the security of family ties, NationalCorn Growers Association (NCGA) Vice President-elect GarryNiemeyer told FarmWeek.

As Illinois Farm Bureau’s new Farm Policy Task Force gearsup for late July review of ag policy issues, NCGA is focusingon several possible approaches to bolstering future risk man-agement options.

According to Niemeyer, proposals discussed at last week’sWashington Corn Congress covered the range of “risk manage-ment tools,” from crop insurance to changes in the averagecrop revenue election (ACRE) program.

Last week, Ag Secretary Tom Vilsack told the AmericanFarm Bureau Federation’s (AFBF) Council of Presidents he isurging Congress to set a farm bill goal of adding 100,000 newand beginning farmers. “We better get serious in this countryabout who’s going to farm,” he said.

Reliable risk management resources will be increasinglyimportant for young farmers struggling to gain a foothold in acompetitive economic environment, Niemeyer argued.

“We’re trying to grow markets so we can get our money outof the market, not out of the government,” the former IllinoisCorn Growers president said. “But we do need risk manage-ment from the government to support growers in times whenwe have disasters. Nobody’s farm has ever had a consistentlygood season year after year after year.”

House Ag Committee Chairman Collin Peterson (D-Minn.)appears focused on shifting away from direct farm payments,spurring examination of ways to improve ACRE protections.

Current proposals include calculating program yields bycounty or crop reporting district, instead of on a state-triggeredbasis or eliminating the program’s 85 percent base-acre cap.

Meanwhile, AFBF last week asked Senate Majority LeaderHarry Reid (D-Nev.) to allow an amendment to small businessfinancing legislation that would permanently set the federalestate tax rate at 35 percent, with a $5 million individualexemption phased in over 10 years and indexed for inflation.

Without congressional action, the estate tax is scheduled toreturn in 2011 at a 55 percent rate and a mere $1 million indi-vidual exemption. The bipartisan amendment “will help trans-fer family-owned operations from one generation to the next,”AFBF President Bob Stallman said.

“If you don’t have a family background, it’s just going to bepretty tough to get started in large corn or large soybean pro-duction,” Niemeyer said. “We have to keep the people in farm-ing on the farm and keep them in business.” — Martin Ross

Illinois farm leadersseek trade movement

Illinois ag leaders lastweek pushed D.C. lawmakersto book South Korea, Pana-ma, Colombia, and Cuba ontheir 2010 itinerary, beforeother countries lock in keymarket share at the U.S.’expense.

Trade was a major concernfor the American FarmBureau Federation’s (AFBF)Council of Presidents andthe national Corn Congress,both convening last week inWashington.

Estate tax reform, exten-sion of biofuels tax credits,food safety, and Mississippilock funding also were onleaders’ agenda.

U.S. Senate MajorityWhip Dick Durbin, aSpringfield Democrat, toldIllinois Farm Bureau Presi-dent Philip Nelson Congresslikely would not take upKorea, Panama, and Colom-bia free trade agreements(FTAs) until after fall elec-tions.

Auburn’s Garry Niemeyer,elected National Corn Grow-ers Association (NCGA) vicepresident at the NCGA con-gress, nonetheless was“working the Hill” with otherproducers to generate sup-port for the FTAs.

Niemeyer argued “tradeis extremely important inthese tough economictimes.” Corn growers “haveto grow our markets to con-tinue to advance and keepviable,” he told FarmWeek.

“Canada and other coun-tries are going in and takingthe Colombian market whilewe have an FTA waiting forcongressional approval,”said Nelson, a member ofAFBF’s presidents’ council.

“On the flip side, look atKorea: We used to be theirNo. 1 trading partner, butwe’ve slipped to fourth withChina and the EuropeanUnion is in front of us. Istressed to Senator Durbinthat we have to stay on top

of these agreements or we’lltrade ourselves into extinc-tion.”

Meanwhile, Niemeyer not-ed “Cuba’s on the table rightnow,” urging immediate pas-sage of bipartisan legislationthat would ease current feder-al restrictions on travel andtrade with the nearby Com-munist nation.

In his meeting withDurbin, Nelson stressed “theseverity of Congress doingnothing about the estatetax.” The senator said hewould consult Senate AgChairman Blanche Lincoln(D-Ark.) about her plan toboost the individual estatetax exemption from $3.5 mil-lion to $5 million, with a 35tax percent rate, over 10years (see accompanying sto-ry).

Durbin was less optimisticabout inclusion of farmerindemnification in food safe-ty legislation. Nelson citedlost ag income resulting fromproduct recalls and mediareports eventually found tobe in error, warning suchproblems could occur morefrequently with “increasedregulatory oversight.”

“You can almost shutdown an industry, and yetfarmers don’t have the fundsto fight it,” he said. However,Durbin questioned the avail-ability of government fundsfor indemnification. — Mar-tin Ross

‘(We) have to grow our markets tocont inue to advance and keep v i -able.’

— Garry NiemeyerVice President-elect, National Corn Growers Association

ENERGY


Ethanol group proposes tax credit redirectionBY MARTIN ROSSFarmWeek

Passage of new energy legis-lation, with extension of soon-to-expire federal ethanolblenders tax credit, is “higheston the priority list” for incom-ing National Corn GrowersAssociation Vice President-elect Garry Niemeyer.

At the same time, a nationalethanol coalition is promoting aplan aimed at transitioning theindustry from incentive-drivendevelopment to broad marketaccess by redirecting a portion ofthe credit to help fund ethanolpipelines, “blender pumps,” and

group’s plan is intended to pro-vide one more option for law-makers mulling ways to ensurefuture replacement of fossilfuels with renewables.

“We want an extension ofthe amount of money that’sgoing to the tax credits,” hetold FarmWeek. “Down theroad, we think the biggestchallenge we have is not pro-ducing ethanol; it’s access tothe marketplace. We want toredirect some of those funds,not wait two years or five yearsto get started, because it won’thappen overnight.”

Buis reported a five-yearextension of “the value of thecredit” would be ideal. GrowthEnergy favors leaving the cred-it’s special blenders carve-outfor cellulosic ethanol intact as

related infrastructure. Last week, Sen. Amy

Klobuchar (D-Minn.) toldgrowers a Senate energy pack-age likely will include extensionof the ethanol credit, a tariff onimported ethanol also set toexpire at year’s end, and a $1-per-gallon biodiesel tax creditwhich expired Dec. 1.

Sen. Majority Whip DickDurbin, a Springfield Democ-rat, told Illinois Farm BureauPresident Philip Nelson he sup-ports biofuels extensions.

Niemeyer seeks a five-yearextension of the 45-cent-per-gal-lon ethanol credit in order to bol-

ster biofuels investor confidence.Meanwhile, the industry

group Growth Energy lastweek unveiled a “Fueling Free-dom” plan to phase out ethanolsupports by redirecting a por-tion of tax credit funds to“build out” infrastructure forethanol distribution and useand shifting the remaining por-tion “away from the oil compa-nies to opening the market.”

The ethanol credit now goesto fuel blenders to offset biofu-els costs and reduce pumpprices. Under Growth Energy’splan, a portion of creditswould shift to fuel retailers toinstall new blender pumpswhich offer a range of ethanolblends and to federal supportfor new ethanol pipelines.

Further, the proposal wouldrequire all U.S.-sold automo-biles be flex-fuel vehicles(FFVs) capable of running onhigher ethanol blends.

The plan reflectsKlobuchar’s Securing America’sFuture with Energy and Sus-tainable Technologies Act,which seeks extension of biofu-els credits, loan guarantees forpipeline construction, blenderpump tax credits, and an “openfuel standard” that wouldencourage FFV use.

House Energy and Com-merce member John Shimkus, aCollinsville Republican, is back-ing a proposal to extend ethanolcredits through 2015. GrowthEnergy CEO Tom Buis said his

Illinois Farm Bureau President Philip Nelson, center, meets with U.S.Sen. Dick Durbin, a Springfield Democrat, right, on Capitol Hill.Durbin, seen here greeting IFB national legislative director AdamNielsen, reiterated support for continued biofuels incentives. (Photocourtesy of Durbin staff)

biomass fuel technologies andinvestment take root.

Growth Energy Co-Chair-man Jeff Broin, CEO of Iowa-based cellulosic ethanol devel-oper POET, said an ethanolpipeline “looks very feasible”based on research not yetreleased by the U.S. Depart-ment of Energy (DOE).

POET is working withDOE to craft a loan guaranteeprogram for pipeline develop-ment, which Broin said “isgoing to be critical.”

Other groups, including thenational Renewable FuelsAssociation (RFA), are wary ofGrowth Energy’s proposal —“Now is not the time to adduncertainty and complexity tothe energy/tax debate,” RFAPresident Bob Dinneen said.

Push for ‘advanced’ statusDoes RFS2 targetlower expectations?While they may reflect current realities, new U.S. Environ-

mental Protection Agency (EPA) renewable fuels targets alsocould slow realization of long-term ethanol goals.

So warn producers and ethanol industry representatives whobelieve corn ethanol could help fill “advanced” biofuels needsuntil cellulosic ethanol comes online.

EPA last week opened a 30-day public comment period onproposed 2011 biofuels targets under the federal renewablefuels standard (RFS2).

The agency proposes 13.95 billion gallons of renewablefuels use for the coming year, including 5 million to 17.1 mil-lion gallons of cellulosic biofuels produced from crop or woodwastes or emerging energy crops and 1.35 billion gallons of“advanced biofuels” designated for their potential to signifi-cantly reduce greenhouse gases.

Based on “market availability,” EPA proposes a 2011 cellu-losic volume lower than an original 250-million-gallon targetunder 2007 energy law.

Despite EPA’s stated optimism in future cellulosic supplies,Renewable Fuels Association spokesman Matt Hartwig fears areduced near-term target could “send a chilling effect through-out the investment community.”

While cellulosic ethanol “isn’t quite ready yet, either technicallyor economically,” EPA’s plan “probably sends the wrong messagesto financial institutions,” Illinois Corn Growers Association industryspecialist Dave Loos told FarmWeek. A lack of financing optionsmay be a prime obstacle to cellulosic development, Loos said.

At the same time, the issue underlines frustrations within thecorn ethanol industry, which is limited to 15 million gallons ofan annual 36 billion-gallon RFS2 target for 2022 based onEPA’s assumption that corn-based fuel has a greater carbonimpact than next-generation biofuels.

That conclusion is based on theories about the impact of cornethanol production on global cropping and other land use pat-terns and on future greenhouse emissions. Setting “indirect landuse” factors aside, Loos argued new ethanol efficiencies shouldenable corn-based plants to qualify for advanced-fuel status.

“Cornstarch ethanol is poised to fill these gaps that can’t bemet with cellulose ethanol or advanced biofuels under (EPA)definitions,” he said. “We’re going to have 15 billion gallons ofcapacity just in the next couple of years.

“We could easily offset advanced biofuels or celluloseethanol if we were given the green light to do it by allowingcornstarch ethanol to be an advanced biofuels or moving upthe 15 billion gallons allowed for conventional ethanol.”

The Government Accountability Office last week reportedshortcomings in the U.S. Department of Energy’s (DOE) loanguarantee program for energy projects that reduce greenhouseemissions. The ethanol group Growth Energy called programdeficiencies a “road block” to developing cellulosic ethanol.

Loos sees the need to beef up DOE loan programs, butbelieves the greater problem is that “DOE will not talk aboutcorn ethanol, whether it’s corn starch ethanol or corn fiberethanol” — a potentially key link in hastening the transition tonext-generation cellulosics. — Martin Ross

Email pictures to: [email protected] images to: 1st Farm Credit Services, Attn: Karen Blatter

2000 Jacobssen Drive, Normal, IL 61761(309) 268-0254 (800) 444-3276

Fortunate4 Rural

AmericaShow what makes you fortunate for rural America in the 2011 1st Farm Credit Services Calendar!

For the upcoming calendar, we are again asking our clients and friends to submit images of life in rural America. Selected images will appear in the 2011 calendar. Deadline for submission is August 31.

Be sure to include your name, address, phone number and a short description of why the image means rural America to you.

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Bernie Walsh, Durand, Winnebago County: Good grow-ing conditions again last week,with two different rain showersthat brought 0.3 of an inchSunday (July 11) and about twotenths Monday night. We havebeen missing the bigger rainsand now we are starting to mea-sure the rain we get in tenths.

We were able to finish combining wheat onThursday night with the help of a neighbor.The wheat was good quality and averagedabout 85 bushels per acre. The corn andbeans still look good. We are definitely get-ting plenty of growing degree units this year.If we could add a few more rains, we couldhave a great crop.

Pete Tekampe, Grayslake, Lake County: We had a greatgrowing week in Lake County.We had 0.4 of an inch of rainearly and hot and humid the restof the week. Corn is a lush greenand mostly tasseled out. Beanshave a great color and are grow-ing fast. About 50 percent of thewinter wheat is cut and a lot of

the straw baled. Spring grains are turningfast. Most of the first cutting hay is baled andsome have started second cutting. We coulduse more rain. Have a safe week.

Leroy Getz, Savanna, Carroll County: Rain on July 11 and12 totaled 2 inches in my area.Very heavy on Sunday after-noon. Planes were flying fungi-cide and some ground sprayersare going after wild cucumberand other escapes in soybeans.Most corn is in good condition,but there is a nitrogen deficiency

in some of the compacted fields. I did com-bine some oats on Thursday. First yieldswere 80 to 85 bushels per acre at 11 to 12percent moisture. Hot, humid days havebeen stressful on livestock. Growing degreeunits now total 1,532.

Larry Hummel, Dixon, Lee County: Perfect weather allthrough pollination. Insect popu-lations have been on the lowside of normal, but theJapanese beetles are startingto climb in numbers. Big yieldpotential is there, especiallyhere in the corners of Lee,Ogle, and Whiteside counties.

As I travel the state this year, I’ve come toappreciate our rolling topography. It’s toughto have a drowned out spot on the side ofthe hill. Our soybeans that were hailed ontwo and a half weeks ago are starting togreen back up and looking better. At a littleover knee-high, they have a long way to goto catch up with another field that was plant-ed the same day with the same variety andis above the waist.

Joe Zumwalt, Warsaw, Hancock County: A few rainsmoved through the county earlylast week, but the predominantweather story has been the veryhot and sultry temps these pastfew days. Crops are progressing,but they are still showing signs ofthe perhaps the wettest springon record. The early yield predic-

tions are all over the board for both corn andsoybeans. Several grain drills were still mov-ing last week. Crop-dusters continue to bebusy and there has been a lot of activity withhay baling and roadside mowing. County fairseason is just beginning, so take a little timeoff to enjoy some of the festivities that sum-mer has to offer. I will be taking in a fewCardinals games. Perhaps even more impor-tantly, take advantage of the state legislatorsbeing on summer break and give them a call.Express your opinions on the financial condi-tion of the State of Illinois.

Ken Reinhardt, Seaton, Mercer County: About an inch ofrain fell around the area earlylast week. In some of the better-looking cornfields, nitrogen defi-ciency is firing the lower leavesand gray leaf spot is advancingrapidly. Timing of fungicide appli-cation is tricky with the uneven-ness of corn-on-corn. There are

millions being spent in the area to upgradedrying and grain handling facilities includingan all-new facility just south of the county.They had better hurry — with early plantingand higher growing degrees, harvest will behere before we know it.

Ron Moore, Roseville, Warren County: Not much to reportthis week. It was hot and humid.Fungicide has been applied andthe corn is now pollinating. Theearly-planted beans have closedin on 30-inch rows and no dis-ease to report yet, but we willkeep looking. The cattle haveplenty of grass, but still like my

neighbors corn better. We will keep checkingthe fences the rest of the summer.

Jacob Streitmatter, Princeville, Peoria County: There hasbeen very little rain to speak ofaround the area. Hot and humidweather has moved in and so farthe crops are not showing signsof suffering. A nice rain would bebeneficial to the crop. Airplaneshave been flying and there is a lotof rust showing up in the corn

crop. Have a good week.

Tim Green, Wyoming, Stark County: A pleasant week butit was a little warm. As we scoutfields, we are seeing gray leafspots showing up in spots. Thereare planes flying around spray-ing fungicide to control some ofthose diseases. Hopefully, it willpay. Corn looks a little betterafter a couple of weeks of nice,

dry weather. Our yellow spots have becomegreen. Corn is a little short, but at least it isgreen, so it looks a little bit better when youdrive by. People getting ready for fall, tryingto get bins put up and maintenance done.

Mark Kerber, Chatsworth, Livingston County: More hotand dry weather. Some werefortunate enough to receive a lit-tle rain, but our area was com-pletely dry all week. Hot weatherhas everyone complaining —weathermen say this weekcould be more of the same witha dome of hot air over the Corn

Belt. Crops would respond to a rain, but with-out it the corn is deteriorating. Everyoneseems to be caught up with spraying andmowing, etc. Maybe a good time for a vaca-tion. We will be watching for aphids and spi-der mites in soybeans. Markets are respond-ing to the weather.

Ron Haase, Gilman, Iroquois County: We received anisolated shower on Tuesdaythat produced 0.9 of an inch onhalf our farms and 0.35 of aninch on the other farms. So forthe month of July, we havereceived 0.4 to 1 inch of rain.With all the heat and the shal-low root systems, we are in

need of more rain to handle the 90-plusdegree weather that is projected for nextweek. Corn in the local area is anywherefrom the R1 (silking) growth stage up tothe R3 (milk) stage. Some corn already isrobbing the plant to fill the ear. Crop-dusters have been flying everyday apply-ing fungicides in some cornfields.Soybean fields are anywhere from V2 upto R4 or the full pod growth stage. Thelocal closing prices for Thursday were$3.64 for nearby corn, $3.67 for new-cropcorn, $3.81 for fall 2011 corn; $10.36 fornearby soybeans, and $9.59 for new-cropsoybeans. With the Iroquois County Fairhaving just started, the heat and humidityshould not come as a surprise.

Brian Schaumburg, Chenoa, McLean County: Cornpollination is now completeand kernel fill begins. Somecorn is firing at the lowerleaves showing signs of lackof nitrogen. Subsoil moistureis more than adequate if rootscan get to it. Soybeans lookgood with little problems as

yet. Crop ratings are still good to excel-lent. Scouting continues for insects anddisease. If you have not sold, this is yourbailout! Corn, $3.59, fall, $3.63; soybeans,$10.43, fall, $9.43; wheat, $5.36.

Carrie Winkelmann, Menard County: It was a prettyuneventful week on the farm. Nomeasureable rain. Hot conditionsare causing poorer-looking areasof fields to show heat stress. Alot of farmers are out mowing.

Steve Ayers, Champaign, Champaign County: Justanother hot, muggy week punc-tuated by sporadic pop-upstorms. The areas that needthe rain cannot buy one, whileother areas are under water.We had 0.66 of an inch of rainTuesday and another 0.66 of aninch Thursday. Ag cats are

buzzing cornfields spraying fungicide.Some corn is firing. Beans are growingthrough the ugly stage as volunteer cornand weeds die off. Some water hemp ispopping through the bean canopies. Moredays in the 90s on tap with a chance of pop-ups. See you at the Champaign County Fairthat begins Friday in Urbana.

Wilfred Dittmer, Quincy, Adams County: Did someoneturn the spigot off? We hadanother dry week and looks likecrops around here are actuallyenjoying it. Corn for the mostpart is improving in looks, atleast from the windshield, andthe soybeans are stretching upalso. Still a little aerial spraying

happening, as well as general mowing andthe odd jobs. I think what few wheat fieldsthere were are harvested by now. Have asafe week.

Tom Ritter, Blue Mound, Macon County: It was a hot, dryweek that added a lot of stress.We are at the point where weneed moisture. A lot of corn iscurling up to protect itself toprevent loss of moisture. A cou-ple of showers just wet theroads, but didn’t develop afterthey passed Central Illinois.

Overall, crop prospects still seem to be verygood. Corn completed pollination. Sprayingthe fungicides is slowing down. Herbicideapplication on soybeans is pretty well fin-ished. Farmers are taking time for vacationsand preparing storage and equipment forthe coming fall.

Todd Easton, Charleston, Coles County: The excep-tionally rainy growing seasoncontinues here in ColesCounty as periodic rain show-ers last week brought 2 to 3inches of precipitation. Theserain events have been separat-ed by very hot and muggy con-ditions that seem to be speed-

ing crop development. With remaining fieldwork narrowed down to mainly just scout-ing, many producers are finally findingtime to catch up on other tasks such asmowing and grain hauling. Earlier corn-fields are just entering the blister stageand looking like pollination went prettywell. Not many firm guesses ventured onthis corn crops potential yet. Soybeanfields are beginning pod development orwill be this week and seem to be enjoyingthe moisture with the exception of thedrowned out ponds, which will not do verywell once again this year. The earlier May-planted beans may have a noticeable yieldadvantage over the ones that couldn’t beplanted until later in the month due to wetweather. Don’t forget to take it slow, keepcool, and watch out for pets and youngones outdoors during these hottest days ofsummer.

Jimmy Ayers, Rochester, Sangamon County: This pastweek we received very little rainin the area, although there wassome spots that got from 0.3 to1.5 inches. The crops are feelinga bit of stress from the high heat.Corn in many fields are firing atthe bottom and showing signs ofcompaction or shortage of nitro-

gen. I was told that some of the earliestplanted corn has started denting. There isnot a great deal of great-looking corn. Someguys in the area who fly ultra lights say a lotof fields are 25 to 50 percent yellow dam-aged. A couple of guys found green snapdamage from the heavy winds and stormswe had that they didn’t realize had occurred.Most of the 30-inch rows of soybeans haveclosed their canopies and are using the fullphotosynthesis process. Volunteer corn hasbeen taken down by chemicals sprayed twoor three weeks ago. It appears the marketsare seeing a shortage of crop here also.Hope you all have a safe summer, and any ofyou guys mowing roadsides, be careful —that can be a dangerous thing.


CROPWATCHERS

Kevin Raber, Browns, Wabash County: Hot and humidweather returned to SoutheasternIllinois. Rainfall of 1.5 inches hasbeen holding the crops so far. Thecontinued 95-degree days willtake their toll sooner or later. Theriver bottom ground has been slowto dry, so I don’t know if I will getany beans replanted.

Dean Shields, Murphysboro, Jackson County:Another hot week in SouthernIllinois. The high humidity hada lot of sweating going on.Corn has been pollinating andhas black silks. Beans aregrowing pretty well. We hadshowers with a few tenthshere and there last week. Still

doing a lot of spraying of beans, and stillhaving a hard time killing the water hempand the pig weed. There are a lot of ques-tions about whether to plant wheat thisyear and how much. We are hoping for alittle rain this week. We are getting prettydry. The river is still up high, and we arestill pumping water out of the river bottomground. Some parts of Jackson Countyare pretty dry, though.

Ken Taake, Ullin, Pulaski County: We had a niceshower the weekend of July11. We ended up with a totalof about 1.25 inches of rainbetween Friday and Monday(July 12). It was really nice.The crops really needed it.The rain still was very spottyin our area. I heard of totals

anywhere from half an inch up to morethan 3 inches. Since then, it has beenreally hot and humid. The rain really didmake crops look a lot better. The grass inthe yard is starting to green up again. Itwas starting to look really brown. As faras activities in the area, there is somefungicide being applied to corn, and ofcourse, the weeds just keep showing upin the beans. Please try to stay cool andenjoy your county fair.

Ted Kuebrich, Jerseyville, Jersey County: Jersey Countyreceived more rain last weekwith parts of the county gettingas much as 2.5 inches. Theweather is still very hot with tem-peratures in the high 90s. Thebeans look real good and areputting on lots of blooms. Whenyou drive down the road along

some of the cornfields, you can start to seesome yellowing and firing on the corn plant. Itlooks like the plant is under stress from beingtoo wet. Prices at Jersey County Grain,Hardin: July corn, $3.62, fall corn, $3.71,January 2011 corn, $3.91; July 2010 beans,$10.42, fall 2010 beans, $9.75, January 2011beans, $10.01; July wheat, $5.22.

Dan Meinhart, Montrose, Jasper County: We still haveexcess moisture in this area. OnJuly 8 and 9, some locationsreceived 4 to 5 inches. LastTuesday, heavy rains hit againwith 2 to 3 inches, flooding fieldsand roadways. Thursdayevening, the area got hit onceagain. Our gauge showed 1.25

inches. The May- and June-planted corn isshowing signs of extreme stress due to all theexcessive moisture. Some of the later-plant-ed beans are having trouble emerging. Thereare beans that need to be sprayed with postchemicals, but ground conditions do not per-mit travel. The weather has been hot andhumid with the heat index in the 100s. Moreof the same is expected this week.

Bob Biehl, Belleville, St. Clair County: We received a nice0.6 of an inch of rain Thursdaynight, but showers were isolated.The western edge of the countydid not receive much. Our cropslook pretty good after the hot,humid week. In areas to thesouth, rain has been limited andreports are the corn is really

hurt. Silks are brown in many of the fields andsome are in the grain-fill stage. Beans contin-ue to add height and are blooming and reallyseem to soak up the warm, humid weather.Cleaning out grain bins and cleaning uparound the farm are the main activitiesaround here.

Doug Uphoff, Shelbyville, Shelby County: We sold the lastthe of the ‘09 bean crop last weekand, of course, it has gone upevery day since. We are sold outon corn. We had 14 inches of rainin June and have had 1.4 thismonth. Some of the corn is firingand bean stands are spotty. Weneed rain now with this heat and

humidity. A lot of gray leaf spot disease is pop-ping up in corn. We sprayed some withHeadline, but right now rain is going to makemore yield than the fungicide. Beans are inR1, and corn is all past brown silk except forour neighbor‘s field. Not sure how the big boyswho farm this way and pay the high cash rentsare going to make it with fields like they have.The county fair is starting today (July 19) andhot temps are forecast. We aren’t showing thisyear. It feels kind of weird, but I am not goingto miss the heat. Farm No. 2 diesel, $2.445;soy No. 2 diesel, $2.36; truck No. 2 diesel,$2.92; soy No. 2 truck diesel, $2.81; gas,tanker, $2.71; town gas, $2.59; cash corn,$3.64, fall corn, $3.71, January corn, $3.86,fall 2011, $3.92; new wheat, $5.61, July 2011wheat, $6.03; cash beans, $10.31, fall beans,$9.56, January beans, $9.73, fall 2011 beans,$9.50.

David Schaal, St. Peter, Fayette County: It was been a hotand humid week here with heatindexes above 100. There was alittle rain that came through onTuesday morning that variedagain from road wetting to morethan an inch in the eastern partof the county. Also, some show-ers on Thursday night left less

than 0.1 of an inch in my gauge. Corn crop isstill looking very good. Soybeans are lookingbetter. Some are starting to take off and final-ly do some growing. Commodity markets arenot sure what to do. They are still doing thewidening basis thing. Keep cool and have agood week.

Rick Corners, Centralia, Jefferson County: We had anoth-er 1.4 inches of rain Tuesdaymorning in the wee hours.Places not too far from here hadzero rain. Now they know how Ifelt last year. Early corn is fillingears now and some of the Group3 beans are starting to bloom. Ithink the ground now has thawed

out completely on the north side.

Page 7 Monday, July 19, 2010 FarmWeek

CROPWATCHERS

Reports received Friday morning.Expanded crop information available at FarmWeekNow.com

Fast-growing crops could be challenged by heat stressBY DANIEL GRANTFarmWeek

The warmer, drier condi-tions in recent weeks were arelief to many farmers.

The average rainfall in thestate for May and June totaled13 .48 inches, 5 .12 inchesabove normal, according tothe Illinois State Water Survey.The excess moisture delayedthe end of planting, slowedefforts to control weeds andapply fertilizer, and drownedout crops in numerous lowspots around the state.

“It (the corn crop) reallycame around from being toowet in June,” said Tim Lenz, aShelby County farmer andpresident of the Illinois CornGrowers Association. “Themajority of the crop already isthrough pollination.”

In fact, the growth rate ofcorn and soybeans so far thisseason is well ahead of thepace last year and the five-yearaverage.

The National AgriculturalStatistics Service Illinois fieldoffice reported a whopping 72percent of the corn crop wassilking as of July 11 comparedto just 10 percent at the same

when the temperature hits 90degrees or greater, which caus-es the loss of water vaporfrom the leaf surface to exceedwater uptake by the roots,according to Kevin Black,insect/plant disease technicalmanager for GROWMARK.

If the plants have enoughmoisture, they generally willunroll in the evenings.

H owe ve r , “ l e ave s t h a tremain rolled overnight sug-

gest that the moisture stresswill likely impact plant growthand yield,” Black said.

Soybeans also may experi-ence sunburn, a superficialinjury most often associatedwith discoloration of the low-er leaf surface, due to theongoing heat wave. Suddendeath syndrome symptomsalso may show up a littler ear-lier this year than usual, Blackadded.

time last year and the averageof 41 percent.

Meanwhile, 43 percent ofthe soybean crop in the statewas blooming as of the first oflast week compared to 10 per-cent last year and the five-yearaverage of 38 percent.

“A lot of (the corn crop)could reach physiological maturi-ty by Sept. 1,” Lenz said. “We’reahead of schedule. Hopefully, wewon’t have the drying problemswe had last fall.”

The key concern now seemsto have shifted from too muchrain to a combination of notenough moisture and risingtemperatures.

The condition of Illinois’corn crop the past two weeksdeteriorated from 67 percentgood to excellent to 65 percentgood to excellent. Twelve per-cent of the state’s crop last weekwas rated poor or very poor.

Elsewhere, seven other stateshave double-digit, poor- to-very-poor corn condition ratings(Iowa 10 percent, Ohio 11 per-cent, Indiana 12 percent, Ten-nessee 21 percent, Missouri 22percent, Pennsylvania 28 percent,and North Carolina 35 percent).

“We lost some of the crop

to ponds that will take the topend off yields,” Lenz said.“But we continue to need toget rain (to maximize remain-ing yield potential).”

Dale Mohler, ag meteorologistwith Accuweather.com, predict-ed the crops could face morestress. Illinois, Iowa, and Missourithis week could experience threeto five days with temperaturesreaching the mid- to upper 90s.

Corn leaves generally roll

Illinois Forage Expo scheduled WednesdayThe 2010 Illinois Forage Expo will be held

Wednesday at Law-Rae Dairy Farm, 5898 E. 7000N Road, Manteno in Kankakee County. TheExpo will start at 9 a.m. and conclude at 3 p.m.

The dairy farm is a grazing-based operationcurrently milking 150 cows. The operation uses40 four-acre paddocks for intensive grazing ofgrass/clover pastures under irrigation.

The Forage Expo will include field demon-strations of forage-harvesting equipment andcommercial displays of forage-related productsand equipment. In addition, educational ses-sions will be presented that focus on foragespecies selection and animal preference; foragefertility and weed control; hay preservatives andUSDA’s Natural Resources Conservation Ser-vice (NRCS) programs.

In addition, a quality hay and haylage contestwill be available for producers to enter 2010 har-

vested bales and haylage. Entries in the contestmust be delivered on site from 9 to 10 a.m.

There is no entry fee and near infrared spec-troscopy analysis will be provided free of charge.Bales weighing more than 100 pounds will needan official scale weigh ticket.

For further information on the contest, contactGreg Clark, University of Illinois Extension,Whiteside County, phone 815-772-4075 or via e-mail at [email protected].

The Forage Expo site is located about 4.5 milessoutheast of Manteno. Additional informationconcerning the Illinois Forage Expo is available at{http://www.illinoisforage.org/}.

For information on exhibiting a commercialdisplay, contact Gale Imig, GROWMARK Inc., at309-557-6397. The Forage Expo is sponsored byIllinois Forage and Grassland Council, Universityof Illinois Extension, and USDA’s NRCS.

PRODUCTION


IFB conference speaker to analyze Ohio decisionBY DANIEL GRANTFarmWeek

Illinois farmers have achance this month to learnmore about how their counter-parts in Ohio handled a recentchallenge from the HumaneSociety of the United States(HSUS) and why Ohio farmleaders recently opted to sign amemorandum of understand-ing with HSUS.

David White, senior direc-tor of issues management forthe Ohio Farm Bureau Feder-ation (OFBF), will be a fea-tured speaker July 28 at theIFB Commodities Confer-ence at the Marriott Hoteland Conference Center inNormal.

Registration at the eventwill open at 7:30 a.m. and theprogram will begin at 8:30a.m. White is scheduled toaddress conference attendeesfrom 10:25 a.m. to 11:15 a.m.in a breakout session titled“Ohio’s Animal Care Stan-dards Board: Draw or Check-mate?”

Leaders of ag groups in

Ohio and HSUS last monthsigned a memorandum ofunderstanding that proposed:phasing out veal crates in2017; phasing out new hoggestation crate use this yearwith a 15-year phase-out onexisting equipment; imple-menting a “timeout” on newbattery cage permits; andinstituting standards fordowner livestock and euthana-sia practices.

“The agreement preservesthe integrity and operationof the Livestock Care Stan-dards Board,” White toldFarmWeek. “The four rec-ommendations (listed above)now go to the board, whichhas the final say.”

Ohio voters last yearapproved through a ballot ini-tiative the formation of theOhio Livestock Care Stan-dards Board, which generallywas viewed as a victory for aginterests.

But HSUS, prior to lastmonth’s agreement, was gear-ing up for its own ballot initia-tive this year. That initiative, if

approved by voters, couldhave overridden the authorityof the new livestock careboard.

“HSUS now recognizes theLivestock Care StandardsBoard and made a commit-ment to work with it,” Whitesaid.

The alternative to signingthe agreement with HSUScould have been a big gamblefor ag groups in Ohio.

“Is it a perfect agreement?

No,” White said. “But a ballotinitiative would have costOhio farmers (and otherindustry representatives) $10million to $15 million with a50-50 chance of winning.”

“And even if we won, ourdeep-pocketed opponent(HSUS) likely would havereturned year after year untilwe ran out of money (to pro-tect ag interests),” he contin-ued.

The agreement provides

Ohio’s livestock industry somecertainty about the future andprotects its grain market,White said.

Ohio, which is in the top 10nationwide for egg, veal, andpork production, uses 94 per-cent of its soy meal and 30percent of its corn for live-stock rations, White added.

For more informationabout the IFB CommoditiesConference, visit{www.ilfb.org}.

Pest problems just scattered around state so far this season

There have been no reportsof a widespread pest outbreakin Illinois so far this season.

But farmers still shouldcontinue to scout their fieldsthoroughly because some “hotspots” of various insect popu-lations have appeared aroundthe state, according to DaleBaird, University of Illinoiscrop systems educator.

The population of westernbean cutworms, a relativelynew pest to Illinois that spreadfrom Iowa in the early 2000s,is up this year. Japanese beetlesare heavy in some areas, aswell.

And in Northern Illinois,heavy infestations of potatoleafhoppers have been report-ed in some alfalfa fields.

“The number (of westernbean cutworm moths) is higherthan in the past,” Baird said.“But we don’t have the highnumbers Iowa had.”

Producers should considertreating a field for westernbean cutworms if at least 8percent of corn plants areinfected with eggs or larvae,according to the U of I PestManagement Bulletin.

Meanwhile, pest traps andfield scouting so far this sea-son have uncovered relativelylow populations of westerncorn rootworms and soybeanaphids. Trap reports, however,indicated an early start to thecorn earworm infestation win-dow in the southern Corn Belt.

“Growers need to be vigi-lant about scouting for cornearworm,” said Bruce Battles,

agronomy marketing managerfor Syngenta Seeds. “Scoutingand applying insecticide canrecover some yield loss whencompleted within critical time-frames. Unfortunately, predict-ing when corn earworm willarrive is difficult.”

A Pyrethroid treatment maybe of interest to some produc-ers to protect corn silks fromclipping by corn rootwormand Japanese beetle adults, saidMike Gray, U of I Extensionentomologist.

But the population of west-ern corn rootworm adultsappears to be low so far this year.

“I suspect the very wetsprings in recent years alongwith the increasing use of Bthybrids may be setting thisperennial pest on its heels a

bit,” said Gray.Disease pressure in corn so

far this season has been fairlylight considering the amountof rain that fell in May andJune, Baird said.

The four pathogens mostcommon in Illinois cornfieldsare common rust, eyespot,northern corn leaf blight, andgray leaf spot, according toKevin Black, insect/plant dis-ease technical manager forGROWMARK.

“Gray leaf spot is likely tobe the predominant summercorn leaf disease over much ofour area,” said Black, who not-ed the recent warm tempera-tures and high humidity in thestate favor the developmentand spread of gray leaf spot.— Daniel Grant

July 21Illinois Forage Expo, Manteno. More informa-tion at {www.illinoisforage.org/}.

July 22Prairie Rivers Resource Conservation andDevelopment (RC&D) annual meeting din-ner at Mona’s Restaurant, Toluca, and tourof Oak State Products, Wenona. Call RC&D

at 309-365-3979 for reservations.

Aug. 13-22Illinois State Fair, State Fairgrounds,Springfield.

Aug. 17Ag Day, Illinois State Fairgrounds,Springfield.

DATEBOOK

Japanese beetles, such as the one pictured here, have been prevalent inisolated parts of the state. The pest potentially could clip corn silks andin some cases farmers may want to consider treatment. (Photo by ChrisGekas)

FARM INCOME


My240NO

Come Stick Your Neck Out at YourCome Stick Your Neck Out at YourYoung Leader Discussion Meet.Young Leader Discussion Meet.

State WinnerJune 1 - Aug. 1, 2011 (2 mo. use) or 100 hrs. use maximum (whichever comes fi rst) on a Massey-Ferguson MF8650 4WD tractor, 200 PTO hp. CVT transmission (additional terms apply) (courtesy of AGCO)

$ 1,000 Cash (courtesy of IFB)

Trip to 2011 AFBF® Annual Meeting, January 9-12, Atlanta, GA

Trip to 2011 IFB® Young Leader Conference, January 28-30

Trip to 2011 GROWMARK Annual Meeting

First Runner-Up$600 Cash (courtesy of 1st Farm Credit Services & Farm Credit Services of Illinois)

Four State Finalists$ 200 Cash (courtesy of COUNTRY® Financial)

1 yr. membership to Illinois Soybean Association (courtesy of IL Soybean Association)

1 free registration to IL Commodity Conference (courtesy of IL Soybean Association)

District WinnersCOUNTRY® prize

$50 Fast Stop gift card for fuel or merchandise (courtesy of GROWMARK, Inc.)

Trip to 2010 IAA Annual Meeting in St. Louis with specifi c expenses to be paid

District & State Discussion Topics:• Farm Bureau is the leading voice for agriculture but not the only voice.

How do we encourage other agricultural groups to work together for the common good of our industry?

• Has technology become essential for American farmers? Should Farm Bureau infl uence and encourage all generations of farmers, ranchers and agriculturalists to embrace technological opportunities?

Additional State Topics:• Government has always been involved in agriculture. Is the current level

of government involvement a net hindrance or a net benefi t to agriculture?• How will food movements such as “foodie” and “locavore,” which are

focused primarily in urban centers, infl uence national agricultural production and federal programs?

• Given recent challenges, such as volatile food prices and limited world food supplies, do American consumers adequately appreciate the importance of US-produced food? Will American consumers consider American agriculture important to our security in the future?

Entry Deadline August 3 (to Illinois Farm Bureau)Contact your county Farm Bureau® for eligibility and contest information.

IAA District Date Starting Time Location1 August 25 7:00 p.m. DeKalb County FB, Sycamore2 August 30 6:30 p.m. Carroll County FB, Mount Carroll3 August 12 7:00 p.m. Henry County FB, Cambridge4 August 23 8:00 p.m. Quality Inn & Suites, Dixon5 August 24 6:30 p.m. Grundy County FB, Morris6 August 23 7:00 p.m. Livingston County FB, Pontiac7 August 23 7:00 p.m. Woodford County FB, Eureka8 August 25 6:30 p.m. Knox Agri-Center, Galesburg9 August 24 7:00 p.m. Hancock County FB, Carthage10 August 26 6:30 p.m. Menard County FB, Petersburg11 & 12 August 26 6:30 p.m. Macon County FB, Decatur13 & 17 August 26 6:00 p.m. Edwards County FB, Albion14 August 31 7:00 p.m. Effi ngham County FB, Effi ngham15 & 16 August 24 6:30 p.m. St. Clair County FB, Belleville18 August 23 7:00 p.m. Williamson County FB, Marion

Show your art of discussion for hot agricultural topics - and compete for great prizes, including a chance to represent Illinois in the National Discussion Meet.

AuctionCalendar

Mon., July 19. 10 a.m.Farm machinery. SchultzBros., HERSCHER, IL.

Mike PetersonAuctioneers.

www.mikepetersonauctioneers.com

Sat., July 24. 10 a.m.Antique tractors, farmmuseum and miscella-

neous. U.S. BankTrustee, FREEPORT, IL.

Troy Rudy,Auctioneer/Realtor.

www.rudyontheweb.com

Sat., July 24. 9:30 a.m.Farm machinery andmiscellaneous. Phil

Schmillen, RUTLAND,IL. Lauf Auction Service.www.auctionzip.comSat., July 24. 9 a.m.

Auction. Northwest Eq.,OREGON, IL. Cal

Kaufman and Todd Wills,Auctioneers.

Sat., July 24. 10 a.m.Farm machinery. Bill and

Arlene Hamilton, LIN-COLN, IL. White AuctionCo. lincolndailynews.com

or auctionzip.comTues., July 27. 7 p.m.

96.5 Ac. Farmland.Carole Bratton and

William Atchley, Familyof Lowell Peddicord,JOHNSONVILLE, IL.

Carson Auction, Realty

& Appraisal Co.www.carsonauctionan

drealty.comThurs., July 29. 10 a.m.158 Ac. Farmland. MarjieMunsson, ROBERTS, IL.

Bill Kruse, Auctioneer.Thurs., July 29. 10 a.m.158 Ac. Farmland. MarjieMusson, ROBERTS, IL.Bill Kruse, Auctioneer.

billkruse.netSat., July 31. 8:30 a.m.

Estate Auction. Ward“Joe” Cain Estate,

PANA, IL. Cory Craig,Auctioneer.

www.corycraig.comSat., July 31. 10 a.m.

Machinery and collectortractors. Larry Armstrong

Estate, ODELL, IL.Immke and Bradleys’

Auction Service. bidder-sandbuyers.com/immke

and bradleyauction-sinc.com

Sat., July 31. 10 a.m.Monroe Co. Land

Auction. Edward RickertTrust, WATERLOO, IL.

buyafarm.comSat., July 31. 9:30 a.m.Estate Auction. Estate of

Julius Kartheiser,YORKVILLE, IL. DeBolt

Auction Service, Inc.www.deboltauctionser

vice.comWed., Aug. 4. 10 a.m.

Farm machinery. Haroldand Mary Becker,

EMINGTON, IL. Immke

and Bradleys’ AuctionService.

www.biddersandbuyers.com/immke

Fri., Aug. 6. 10 a.m. Lg.Farm Eq. Auction. Estate

of Lloyd E. Nafziger,HOPEDALE, IL. JerryWatkins Auction Team.

www.watkinsauctionteam.com

Sat., Aug. 7. 9:30 a.m.Equipment. Dale

Convention Center,Organizers, DALE, IL.

Jamie Scherrer AuctionCo.

www.jamiescherrerauction.com

Thurs., Aug. 12. 7 p.m.240 Ac. Clay Co.

Farmland. Linda Loveand Veronica Wilkey,

Family of Thomas L. andKathryn M. Clark, CLAY

CITY, IL. CarsonAuction, Realty &

Appraisal Co.www.carsonauctionan

drealty.comSat., Aug. 14. 10 a.m.Farm machinery andmisc. Aileen West,OMAHA, IL. Jamie

Scherrer Auction Co.www.jamiescherrerauc

tion.comSat., Aug. 21. 10 a.m.Farm machinery and

misc. James and MaryFrey, MCLEANSBORO,

IL. Jamie ScherrerAuction Co.

The Natural Resources Conservation Ser-vice (NRCS) last week announced the awardingof contracts for the first signup of the 2010Conservation Stewardship Program (CSP).

Illinois has 265 contracts that cover 175,941acres of cropland, pastureland, and non-indus-trial private forestland, according to Bill Gra-dle, Illinois’ state conservationist. Participatinglandowners will receive $4.018 million for con-servation activities on enrolled Illinois land.

Of the Illinois acres, more than 97 percentwas cropland with pastureland and non-indus-trial private forestland acres comprising theremainder.

Nationally, NRCS announced 10,630 con-tracts on 12,688,937 acres will be obligated for$144.968 million in payments.

“Whether producers have used NRCS pro-grams or our technical assistance, or if theyjust did it on their own over the years, the endresult is the same,” Gradle said.

“Depending on your ground, the naturalresource problems you face and thoseyou’ve fixed, CSP could be the perfect solu-tion to reward you for all the conservationmeasures you’ve taken — and it’ll help youkeep going and do even more,” Gradleadded.

CSP is a continuous signup program, andinterested farmers may apply at any time. Formore information, visit with the local NRCSstaff or go online to{www.nrcs.usda.gov/programs/new_csp/csp.html}.

Landowners to receive $4 million for CSP acres

Market for antique tractors keeps chugging alongBY DANIEL GRANTFarmWeek

The recession-inducedslump that cut into retail trac-tor sales last year apparentlyhad little effect on the antiquetractor market.

Enthusiasm was evidentand the valueof some ofthe topantique trac-tors on dis-play thismonth at His-toric FarmDays in Pen-field was highas an estimat-

ed crowd of 10,000-plus peo-ple showed up for the four-dayshow.

“I was talking to an after-market parts dealer who saidthat, in terms of the tractor-collecting hobby, there is norecession,” John Fredrickson,president of the I & I AntiqueTractor & Gas Engine Club,told FarmWeek.

More than 1,000 antiquetractors and pieces of farmequipment were displayed atthe recent farm show.

“There are tractors here (atHistoric Farm Days) worth$20,000 to $30,000 and a fewtractors worth considerablymore,” Fredrickson said of theantique tractors, some ofwhich retailed years ago for aslittle as $5,000.

The retail tractor market,on the other hand, plummetedlast year during the height ofthe recession. Total retail salesof farm tractors last yeardeclined 21.3 percent while

U.S. exports of ag-relatedmachinery dropped 23 percentin 2009 compared to 2008,according to the Associationof Equipment Manufacturers(AEM).

Retail sales of farm tractorsthrough June of this year post-ed a slight recovery of 2.4 per-cent, AEM reported.

“I don’t think it (the reces-sion) showed up a bit” in theantique tractor market, saidTom Zachary, a LaSalle Coun-ty Farm Bureau member fromOttawa, who has farmed andoperated a trucking businesssince 1948. He also restoresCase tractors.

Nick Cleer, a corn and soy-bean grower from Ipava andFulton County Farm Bureaumember who restores Interna-tional tractors, agreed theantique tractor market hasremained strong through therecession.

“I think the good tractorsthat have been restored arestill bringing top dollar,” hesaid.

A reason the antique mar-ket has held up during thestressful economic times isthat for many collectors it’s ahobby, and they’re passionateabout it.

Meanwhile, it’s rare to findsome of the old tractors insuch good shape. Zachary dis-played his Spirit of 76 Casetractor at Historic Farm Days.He said only 200 of the trac-tors, with the patriotic paintscheme, were made.

“Everyone likes to recall thetractor their dad had or maybeone of the first tractors they

drove when they were a boy,”said Fredrickson, who grew uptwo miles east of the HistoricFarm Days grounds and cur-rently resides in Kentland, Ind.

For Cleer, he inherited apassion for restoring antiquevehicles from his father, whorestores old cars.

“It’s kind of my hobby,”said Cleer, who keeps his fin-ished products for show ratherthan for sale or profit. “We(restore) about one tractor perwinter. We do all of our ownwork.”

Zachary also restores trac-tors as a hobby. He doesn’t sellthem, but after all the time andeffort it takes to restore anantique, he knows what they’reworth.

He displayed a sign atHistoric Farm Days thatread, “Caution: Old tractorsare hazardous to yourwealth.”

FarmWeekNow.com

View Daniel Grant’s photo-gallery of antique tractor own-ers at FarmWeekNow.com.

John Fredrickson

RURAL LIFE


Hospice center, state rep fulfill farmer’s wish BY SETH GILLMAN

Maynard Bye was born andraised on his family farm inBoone County’s GardenPrairie, living what he calls“the good life” for more than70 years.

“The best life you can getis living on a farm,” said Bye,a long-time Boone CountyFarm Bureau member.

Bye, who goes simply by“Skee” to his family andfriends, has had three greatpassions in his life: farming,flight, and his wife, Imo-gene.

Bye was a student pilot inthe 1940s, squeezing in hisflight time after the cows weremilked and the crops weretended.

He owned a small Cub air-plane with his twin brother,housed in a hangar near thebarn.

Then he met Imogene, andlife at home was simply toobusy to keep flying.

Together, the Byes grewsoybeans, corn, and wheat.They bought dairy cows, then

and a nurse from PassagesHospice over the farm, whereBye finally saw his crops fromabove.

“I couldn’t believe it up

there,” Bye said. “You couldsee everything.”

Bye happily noted that thecorn had indeed tasseled, andthat the soybeans had cov-ered their rows.

He worried aloud toImogene that they’d hadtoo much rain lately, andthere were wet spots in thefields.

Bye’s flight was part of thePassages Hospice Dream Pro-gram, which enables hospicepatients to fulfill an unmetwish and experience an event,project, or trip that is good fortheir spirit.

The costs for Bye’s flightwere shared by the PassagesHospice Charitable Founda-tion and Representative Win-ters.

For more informationabout the foundation, visit{www.passageshospicefoundation.com}.

Seth Gillman is administrator ofPassages Hospice. Informationabout the center is available at{www.passageshospice.com}.

added beef cows and pigs totheir farm. Although he washappy as a farmer, Bye oftenwondered what it would belike if he had completed hispilot training.

“I wanted to see what thecrops look like from the air,”Bye said.

Bye farmed full time untilhe was 84 and began experi-encing some health prob-lems. He and Imogene soldthe farm to their grandson,Scot Sell, and moved intotown.

Bye has been back to thefarm several times, still won-dering if he would be able totell from the air whether thecorn had tasseled.

Then one day earlier thismonth, he found out. Bye’shospice provider, PassagesHospice, arranged an aerialtour of his farm with Win-nebago County Rep. DaveWinters (R-Shirland). Wintersis a private pilot and owns afarm in Shirland.

“We connected as farm-ers,” Representative Winters

said. “You’ve always gotsomething to talk about,about raising crops and rais-ing kids.”

Winters flew Bye, Imogene,

Maynard “Skee” Bye of Garden Prairie prepares to take his dreamflight with Rep. Dave Winters over his Garden Prairie farm. The flightwas sponsored by the Passages Hospice Dream Program and Repre-sentative Winters.

Chinese partnershipmay curb Asian carp

Illinois has partnered with a Chinese meat processing firmand an Illinois fishing company to reduce Asian carp popula-tions and prevent the fish from reaching the Great Lakes, Gov.Pat Quinn announced last week.

The first-of-its-kind partnership will create about 180 jobsand reduce pressure on the U.S. Army Corps of Engineers’electric barrier system, according to the governor.

Quinn signed an agreement with Chinese meat processingcompany Beijing Zhuochen Animal Husbandry Co. and BigRiver Fisheries, located in Pearl, to harvest 30 million poundsof carp from Illinois rivers.

Big River will process, package, and ship the fish toZhuochen for resale in international markets where the fish is adelicacy. The company is expected to harvest at least 30 millionpounds of fish for the purpose of this agreement by the end of2011.

The Illinois Department of Commerce and EconomicOpportunity will invest $2 million in capital funds to help BigRiver retrofit its existing facility, increase its processing capaci-ty, and expand new production facilities in Pittsfield, which willcreate 61 new jobs and 120 indirect jobs.

Commercial fishermen contracted by the Illinois Depart-ment of Natural Resources (IDNR) already have startedremoving Asian carp from the Illinois River.

“The high quality and taste of the wild Asian carp from BigRiver Fish far exceeded our expectations. We see a tremendousmarket in China for the wild Asian carp,” said Liang Chang,chairman of Beijing Zhuochen Animal Husbandry.

“As Big River Fish’s production capacity increases, we will beable to expand our marketing efforts in China.”

Rick Smith, president of Big River Fish Corp., added, “BigRiver Fish can now retrofit and expand its facilities to meetour production commitment to Zhuochen. The Asian carpcan become an economic engine for Illinois rather than athreat.”

IDNR in conjunction with the Asian Carp Regional Coordi-nating Committee has established an Asian Carp Control Strat-egy Framework, which includes both short- and long-termactions intended to keep Asian carp from establishing popula-tions in the Great Lakes.

To learn more about the committee’s efforts, visit{www.asiancarp.org}.

RESEARCH


9:00 a.m. – DRIVING RANGES OPEN• Breakfast rolls & coffee

10:30 a.m. – SHOTGUN START • Wolf Creek Golf Club & Elks Country Club • Box lunch provided

SOCIAL HOUR at ELKS COUNTRY CLUB: Immediately following golf • ALL GOLFERS WELCOME

4:30 p.m. – BANQUET & AUCTIONElks Country Club• Dinner• Prizes

Registration Fees:Individual golf & banquet ........................ $130Banquet only .............................................. $50

14th Annual

Reservation Form & event details online at:

iaafoundation.org or by calling

309.557.2230

U of I’s SoyFACE study on climate impact remains vitalBY KAY SHIPMANFarmWeek

The anticipated atmosphereof the year 2050 drifts acrossUniversity of Illinois researchfields where scientists arestuding the potential impacton Illinois soybean and corncrops.

Since September 2000, Soy-FACE (Free Air ConcentrationEnrichment) has collectedinformation about agronomicimpacts due to atmosphericchanges. SoyFACE was afeather in the cap of the Illi-nois Council on Food andAgricultural Research (C-FAR), which funded the pro-ject. Today, USDA and the U.S.Department of Energy fundSoyFACE research.

Ten years ago, little atten-tion was paid to the impact cli-mate change might have onagriculture, but that haschanged.

“Now it’s (global changeand agriculture) in the pub-lic and the government sec-tors,” said Don Ort, U of Iprofessor of crop sciencesand a USDA scientist. Orthas been involved with Soy-

FACE since the beginning.SoyFACE started with

researchers examining theimpact of different atmos-pheric changes on yields,agronomics, and genomics.Now researchers can create ahypothesis and test it basedon the years of SoyFACEdata, Ort explained.

SoyFACE research hasmaintained its focus on theimpact of global climatechange on Midwestern soy-bean and corn production.However, researchers contin-ue to add different scenariosand explore different atmos-pheric combinations, Ort said.

Currently, researchers arestudying the effect on soy-beans of increased ozone;drought; increased carbondioxide and ozone; and acombination of increased car-bon dioxide and drought.

Another study looks at theeffect of higher canopy tem-peratures during the soybeangrowing season.

A third experiment involvesthe impact of a possible heatwave during different plant lifestages — some climate change

scenarios predict more fre-quent heat waves.

“We looked back in historyto find the frequency of heatwaves, the duration, and theamplitude,” Ort said. “Ourhypothesis is that the plant’sreproductive (stage) would bethe most sensitive to heatwaves.”

Amy Betzelberger, center, a University of Illinois graduate student in crop sciences, discusses with studentshow wind speed and wind direction apparatus are being used to control the carbon dioxide concentration ina research soybean field. Elevated carbon dioxide experiments are being conducted in both corn and soy-bean fields at the U of I’s SoyFACE (Free Air Concentration Enrichment) facility. (Photo courtesy U of I)

SoyFACE research alreadyhas yielded important infor-mation indicating yields willsuffer unless crops are adapt-ed to climate changes.

If the same soybean culti-vars of today were planted in2050, future farmers couldexpect an additional 20 per-cent drop in yields due toexpected higher ozone levels,according to Ort.

“The SoyFACE experimentand historical data recordedover the past 10 years bothindicate that for every addi-

tional one part per billion ofozone, soybean yields willdecrease 1.5 bushels peracre,” Ort said.

Researchers also hope tostudy the sensitivity of cornto higher ozone levels.

The U of I’s SoyFACEresearch facility, the largest ofits kind in the world, is one ofonly five such facilities. Theproject was started to put Illi-nois farmers ahead of thegrowing curve and plans areto continue that research intothe future.

FB IN ACTION


Illinois agriscience student takes national honorBY KAY SHIPMANFarmWeek

Rosemary Chapple, a 2010Waterloo High School gradu-ate, last week personally dis-pelled the myths that studentsfrom rural high schools andthose who study agriculturecan’t compete with the nation’selite.

Chapple, a member of theWaterloo FFA Chapter, wasone of three high school stu-dents nationwide awarded thefirst agriscience award fromthe Christopher Columbus Fel-lowship Foundation and theAmerican Farm Bureau Feder-ation in Washington, D.C.

She received $5,000 forinnovative research into aminoacids that are essential forpoultry growth.

“I know we live in a smallcommunity, but that hasn’tstopped me from looking intoopportunities,” said Chapple,who plans to study aerospaceengineering at the Universityof Illinois, Urbana-Cham-paign.

She is the daughter of Mon-roe County Farm Bureaumembers Richard and Carey

Chapple ofFults andgrew up on acattle farm.

Chapplecredited herhigh schoolagricultureteachers, Timand Mindy

McDermott, for challengingtheir students by addingbiotechnology into the curricu-lum, developing honors cours-es for agriculture classes, andhelping ag students earn dualcredits at a community college.

“My ag teachers did a goodjob of finding resources to getgrants for this technology,”Chapple said. She noted agprograms are struggling in oth-er districts. “I think that’s ashame because they don’t seethe application (for studyingagriculture),” she added.

“Rosemary has exhibited agreat deal of knowledge aboutagriscience research for the pastfour years,” said her teacher,Mindy McDermott. “The rea-son for her success is a lot ofhard work.”

Chapple began her amino

acid experiments in eighthgrade. Eventually her goalbecame to find less expensivefeed for her chicks, and sheaccomplished that by replacingsoybean meal with amino acidsand corn.

Chapple also credited DebbieClinebell, her eighth grade sci-ence teacher, for supporting herresearch throughout her highschool career.

As for the future, Chapplesaid she isn’t sure what she’ll do

as an aerospace engineer, butwas inspired last week by anoth-er award winner, an engineerwho uses satellites to detect themoisture content of soil.

“Who knows?” Chappleasked.

Rosemary Chapple Harvest for All

Carroll County Young Leadersgarner another record donation

BY CHAS WELCHFour Carroll County Young

Leaders volunteered to eachdrive a semi while anotherfour volunteered to be co-pilots on a recent Saturday forthe annual Carroll CountyFarm Bureau Young Leader

Harvest for All program. After contacting county

farmers for corn donations,the semis rolled out to pick upthe donated corn. This is thesixth year the Carroll County

Farm Bureau Young Leadershave hosted a corn drive forHarvest for All.

All proceeds each year aresplit among the four foodpantries that serve the county.

With the generosity of just52 farmers this year, theYoung Leaders collected morethan 3,480 bushels of cornand $4,253.96 in cash dona-tions to set a record donationyear with a total of $16,999.75.Over the course of the sixyears, donations have totaled$75,230.37.

“Each year, we wonder ifwe have tapped out ourresources or if farmers will nolonger being willing to donate,but each year our county farm-ers exceed our expectations,”stated Carroll County FarmBureau Young Leader Chair-man Ed Livengood.

“We certainly acknowledgethem for being the reason ourprogram is so successful.”

Chas Welch is manager of theCarroll County Farm Bureau. Shecan be reached at 815-244-3001.

Semi trucks loaded with donated corn and driven by Carroll CountyFarm Bureau Young Leaders make their deliveries for the 2010 Harvestfor All program. The Young Leaders this year collected a record nearly$17,000 in cash and corn bushel donations. (Photo courtesy of CarrollCounty Farm Bureau)

Where Ideas That Grow Mean Policies That Glow

Join a Glowing GrassRoots Issue TeamWhen you join one of Illinois Farm Bureau s eight GRITs Teams (GrassRoots Issue Teams), you bring to the table big-picture ideas– thoughts you and your neighbors have about the future of agriculture.

IFB s GRITs teams bring together ideas from across the state. Some ideas grow into other ideas. Some get energized and become action plans. Others light the way to new and improved policies.

Gl

owing Grassroots Results

Electrifie

dwithAction

Plans

Apply for One of These Teams• Conservation and Natural Resources • Crop Production and Trade • Equine • Livestock and Dairy • Renewable Resources and Energy • Risk Management and Farm Programs • Rural Life • Specialty Crops and Labor

To Apply Call your county Farm Bureau or IFB at (309) 557-3984, or go to ilfb.org. Applications must be submitted by August 16.

Your Idea

FROM THE COUNTIES


CHAMPAIGN — FarmBureau will sponsor a

renewable energy seminar from7:30 to 11:30 a.m. Thursday atthe Farm Bureau office.Breakfast will be served. Top-ics include Farm Bureau orga-nizational policy, wind energy,updates on renewable energy,climate change and its impacton ag, and the industry’s out-look on corn and soy-basedrenewable fuels. Registrationforms are available at the FarmBureau office or on the websiteat {www.ccfarmbureau.com}.Call the Farm Bureau office at217-352-5235 for more infor-mation.

• Farm Bureau will sponsora land use seminar from 9 to11:30 a.m. Tuesday, Aug. 3, atthe Farm Bureau auditorium.Cost is $10. Registrationforms are available at the FarmBureau office or on the websiteat {www.ccfarmbureau.com}.Call the Farm Bureau office at217-352-5235 for more infor-mation.

DOUGLAS — Platbooks are available at

the Farm Bureau office. Vot-ing members’ cost is $25.

FULTON — TheWomen’s Committee

will sponsor the Best MilkMustache contest at 2 p.m.Thursday, July 29, during theFulton County Fair at the FarmBureau booth in the MerchantBuilding.

• The Young Farmers willsponsor a pedal tractor pull at2 p.m. Friday, July 30, duringthe Fulton County Fair. Therewill be four weight classesfrom 30 to 100 pounds. Cashprizes and trophies will beawarded to the top three indi-viduals in each class. Each par-ticipant will receive an award.Call the Farm Bureau office at547-3011 for more informa-tion.

JACKSON — The YoungFarmer’s annual antique

tractor pull will be at 11 a.m.Sunday at Vergennes Equip-ment. Pedal pull begins at 2p.m. There will be pulling andbarnyard tractor classes. Callthe Farm Bureau office formore information.

• A fish fry and fun nightwill be from 6 to 8 p.m. Satur-day, July 31, at the Murphys-boro American Legion. Pro-ceeds will benefit JacksonCounty Farm Bureau Founda-tion. Big Muddy Fryers willserve the food. A silent auc-tion, live music, and a 50/50drawing will be held. Ticketsare $7.50 for adults (12 years orolder), $3.50 for children 4 to11, and children 3 and underare free. Tickets are availableat the Farm Bureau office. Callthe Farm Bureau office at 618-684-3129 for more informa-tion.

• The Women’s Committeeneeds to borrow antique farmtools and equipment for anexhibit at the John A. Logan

Museum. Items will be on dis-play from January to June. Thecommittee needs a picture andmeasurements to submit to themuseum before the end ofAugust. Call the Farm Bureauoffice at 618-684-3129 formore information.

LEE — Farm Bureau andthe Lee County Fair

Association will sponsor anAmerican Red Cross blood drivefrom noon to 6 p.m. Thursday atthe Lee County Fairgrounds.Call the Farm Bureau office at815-857-3531 or [email protected] if you canvolunteer or donate.

• The Young Farmer Com-mittee will have a ribeye foodstand from 5 to 7 p.m. Thurs-day at the 4-H Fair. Sandwich-es are $5 and a meal is $7.

• Two informational meet-ings on the U.S. EnvironmentalProtection Agency’s spill pre-vention, control, and counter-measure rule will be Monday,July 26. The first meeting willbe at 9 a.m. at the BureauCounty Farm Bureau office,Princeton, and the second at 1p.m. at the Marshall-PutnamCountry Farm Bureau office,Henry. Farmers in Lee,Bureau, Marshall-Putnam, andStark counties are invited. Callthe Farm Bureau office at 815-857-3531 by Monday (today)for reservations or more infor-mation.

• The Young Farmer Com-mittee will sponsor a “Harvestfor All” food drive that willkick off Thursday at the FarmBureau booth at the 4-H Fairand run through Aug. 15. Thecommittee will collect non-per-ishable food items that will bedonated to Lee County foodpantries. Cash donations willbe accepted. Collections willbe at the Farm Bureau booth,the Lee County Farm Bureauoffice, and the WoodhavenAssociation main office, Sub-lette. Call the Farm Bureauoffice at 815-857-3531 or e-mail [email protected] formore information.

LIVINGSTON — TheYoung Leaders will

sponsor a kiddie pedal tractorpull at 5:30 p.m. Wednesday atthe Livingston County 4-HFair. Prizes will be awarded fordifferent weight categories.Call the Farm Bureau office at815-842-1103 for more infor-mation.

• The Marketing Committeewill sponsor a horse owners’workshop at 11:30 a.m.Wednesday at the Pizza Tent atthe Livingston County 4-HFair. Drew Cotton, BlackHawk East College equineinstructor, will be the speaker.Door prizes will be given.Lunch will be served. Call theFarm Bureau office at 815-842-1103 for more information.

MONTGOMERY —A customer apprecia-

tion dinner for Farm Bureaumembers, patrons of M&M

Service Co., and clients ofMontgomery County CountryFinancial agents will be from 5to 7 p.m. Saturday, July 31, atthe Knights of Columbus Hall,Taylor Springs. Tickets areavailable at the above locations.Call the Farm Bureau office at217-532-6171 for more infor-mation.

• The Prime Timers willsponsor a bus trip Sunday, Aug.22, to New Salem State Park.The group will see the play“Dividing the Estate” at theoutdoor theater. Dinner willbe at the Golden Corral. Par-ticipants must be a Mont-gomery County Farm Bureaumember and 55 years of age orolder. Cost is $39. Call theFarm Bureau office at 217-532-6171 for reservations or moreinformation.

MOULTRIE — Platbooks are available at

the Farm Bureau office. Votingmembers’ cost is $25.

• The Farm Bureau appreci-ation picnic will be from 5 to 7p.m. Thursday at the 4-Hbuilding. Call 728-4214 forreservations or more informa-tion.

PIATT — Farm Bureauwill sponsor a drainage

workshop at 8 a.m. Tuesday atthe Farm Bureau office. John

Seevers and Jim Ayers will bethe speakers. Call the FarmBureau office at 762-2128 forreservations or more informa-tion.

SANGAMON — A FarmBureau policy develop-

ment “tailgate talk” will be at5:30 p.m. Tuesday at the FarmBureau office. Rich GuebertJr., Illinois Farm Bureau vicepresident, will provide a policyissue update. Members willhave an opportunity to expressconcerns on policy. Call theFarm Bureau office at 753-5200 for reservations or moreinformation.

• The Marketing Committeewill sponsor a bus trip Wednes-day to the Chicago MercantileExchange and ChesapeakeEnergy group. The bus willleave the Farm Bureau office at6 a.m. Cost is $10 for mem-bers and $20 for non-members.Call the Farm Bureau office at753-5200 for reservations ormore information.

• Farm Bureau will sponsoran auction of used office furni-ture at 10 a.m. Saturday, July31, at the Farm Bureau office.Call the Farm Bureau office at753-5200 for more informa-tion.

STARK — The YoungFarmers will sponsor a

kiddie pedal pull at 2:30 p.m.Sunday during the WyomingCorn Boil. Trophies will beawarded to the top three in dif-ferent age divisions. Call theFarm Bureau office for moreinformation.

VERMILION —Orders for Southern

Illinois peaches from Rendle-man Orchards are due Friday.Cost for a 25-pound box formembers is $23 and $28 fornon-members. Delivery will bethe first part of August. Callthe Farm Bureau office at 217-422-8713 or go online to{www.vcfb.info} for moreinformation.

WAYNE — FarmBureau will sponsor

the annual Young Leadergolf scramble at noon Satur-day, July 31, at the WayneCounty Golf Course, Fair-field. Cost is $50, whichincludes golf, cart, dinner,and prizes. Call the FarmBureau office at 618-842-3342 or go online at{www.waynecfb.com} to reg-ister or sponsor a team.

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

Don’t miss our Early Season Sale from March 17-31, 2010

Contact: Name Phone: (000) 000-0000

Member Company Name

website

©2010 GROWMARK, Inc. A11424_6x8_aod

®

PROFITABILITY


Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $35.10-$42.00 $39.0640 lbs. $55.91-$69.00 $61.3150 lbs. n/a n/aReceipts This Week Last Week

25,897 20,897*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 730 Last week 756 Last year 886Wooled Slaughter Lambs: Choice and prime 2-3: 90-110 lb., $114-$116; 110-130lbs., $130. Good and choice 1-2: 60-90 lbs., $122-$125. Slaughter Ewes: Utility and good 1-3: $44-$46. Cull and utility 1-2: $38-$44.

Lamb prices

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

This week Prev. week ChangeCarcass $72.76 $74.85 -2.09Live $53.84 $55.39 -1.55

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn07-08-10 6.5 14.1 34.507-01-10 3.0 16.9 40.8Last year 11.2 10.0 39.5Season total 1370.7 85.1 1564.7Previous season total 1158.7 76.2 1458.8USDA projected total 1455 900 2000Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $93.95 $92.50 1.45Heifers $94.00 $92.37 1.63

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 Change112.70 113.94 -1.24

CME feeder cattle index — 600-800 Lbs.

Summertime scouting is critical for next yearBY MATT HYNES

Now is the time to evaluateyour seed selections for 2010.I encourage you to go to yourfield and get intimate withyour livelihood. Being in thefields right now will pay divi-dends as you make your crop-ping plans for 2011.

The farmsyou have(fields, soiltypes, etc.)will notchange. Theseed youselect is sub-ject to theenvironment

and what it has to offer, butthe farms (fields) you havepretty much stay the same.

As you well know, each yearis different and there are morethan 1,000 factors that you

cannot control — MotherNature really has the upperhand.

So what can we control?You are capable of controllingthe product you plant, the fer-tility you want, and the cropprotection you use to helpprotect the yield you expect.Mother Nature will take careof the rest.

Let’s go back to what I saidearlier — get to know yourfarms (fields) intimately.Being in your fields and scout-ing is the most importantthing you can do right now,except for marketing yourgrain for a profit. Walkingthrough corn and soybeans atthis time of year is not fun,but it will pay dividends in thefuture.

Your FS crop specialist istrained and willing to help

evaluate what is best for yourfuture cropping plans. He hasall the tools needed to assistyou with evaluating how youcan improve your profitability.

Call your crop specialist andask him or her to walk yourfields with you. The specialistwill help you objectively evalu-

ate what you should do for the2011 cropping year.

He can assist you in hybridand variety selection, cropprotection products neededto optimize your greatestyield potential, and the fertili-ty recommendations toachieve the production capa-

bility you are expecting. Now is the most important

time to evaluate your needsfor 2011.

Matt Hynes is FS Seed salesand marketing manager. His e-mail address [email protected].

Matt Hynes

Importance of co-ops stressed at USDA workshopBY DANIEL GRANTFarmWeek

A number of dairy farmers who spoke at apublic workshop hosted by USDA and theDepartment of Justice (DOJ) stressed theimportance of cooperatives to an industry thathas gone through some tough times.

And the message apparently was received:DOJ reportedly reiterated it will not challengethe right of farmers to market their productsthrough cooperatives under the protections ofthe Capper-Volstead Act, according to Jim Fra-ley, Illinois Farm Bureau livestock programdirector, and Jerry Quick, IFB senior counsel.

The dairy industry workshop was the thirdin a series of five this year. The workshops arethe first ever to be held by USDA and DOJ todiscuss competition and regulatory issues in ag.

“A number of producers who testifiedtalked about the benefits of belonging to acooperative, the fact that competition is goodin their area, and they chose to belong to acooperative,” said Fraley, who attended therecent workshop in Madison, Wis.

Illinois has a relatively small dairy industry.It ranks 20th nationwide in milk production,but farmers here rely heavily on the co-op sys-tem, said Fraley.

About 86 percent of the milk produced inIllinois is marketed through cooperatives,according to Fraley. Nationwide, about 75 to 80percent of milk is marketed through the co-opsystem.

The top five dairy co-ops in Illinois, listedalphabetically, are Dairy Farms of America,Foremost Farms, Midwest Dairymen’s Co.,Prairie Farms, and Swiss Valley Farms.

Another key point stressed by members ofthe dairy industry at the workshop is the possibleover-reliance on “thinly traded” cheese contractsas a means to establish milk prices, Fraley said.

“The issue of pricing milk based on cheeseprices is something we need to take a hard lookat,” he said.

Milk prices in recent years bounced from a

high of $22 per hundredweight in 2008 to $9per hundredweight last year. Producers current-ly are “treading water” with milk prices nearbreak-even, Fraley noted.

“The dairy industry has been hit particularlyhard over the past 18 months and, like otheragricultural sectors, is experiencing consolida-tion and shrinking farm numbers,” said Ag Sec-retary Tom Vilsack. “A fair and competitivemarketplace is important not only for produc-

ers but also for consumers.”The final two USDA/DOJ workshops

will be Aug. 27 in Fort Collins, Colo., with afocus on swine and beef cattle, and Dec. 8in Washington, D.C., where the focus willbe margins and the discrepancy betweenprices received by farmers and prices paidby consumers.

IFB will continue to have a presence at theworkshops, according to Quick.

“We believe it is important to attend asmany of these workshops as possible, giventhis organization’s continuing concerns aboutthe need to maintain fully competitive condi-tions among those who buy our members’products, as well as those who sell productioninputs to our members,” he said.

Quick and Laura Harmon, IFB assistantgeneral counsel, will make two presentationsintended to help farmers understand ag con-tracts July 28 during breakout sessions at theIFB Commodities Conference in Normal.

‘A fair and competitive mar-ketp lace is impor tant notonly for producers but alsofor consumers.’

— Tom VilsackU.S. Ag Secretary

PROFITABILITY


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CASH STRATEGISTCorn Strategy

�2009 crop: Use currentstrength to make catch-upsales.

�2010 crop: Decemberfutures penetrated key resis-tance at the psychological $4mark. Boost sales to 50 per-cent if December futures hit$4.12.

�Fundamentals: Weath-er is the key ingredient guid-ing trading. However, corn isquickly passing the most criti-cal development phase, polli-nation. Even if conditionsremain warm and dry over thenext few weeks, soil moisturereserves should be adequateto keep yields from beingseverely impacted. Weeklyexport sales were supportivethis last week — 1,023,400metric tons (40.08 millionbushels), slightly higher thanexpectations.. It was con-firmed China bought 125,200tons (4.9 million bushels) ofU.S. corn for 2009/2010delivery.

✘Fail-safe: Get new-cropsales to 50 percent if Decem-b e r f u t u r e s f a l l t h r o u g h$3.98.Soybean Strategy

�2009 crop: Becauseold-crop prices continue tocommand a premium to new-crop prices, it’s important touse strength to completesales.

�2010 crop: Last week’srally triggered the order toincrease new-crop sales to 50percent. We may add another10 percent over the next fewweeks. Check the Cash Strate-gist Hotline occasionally for anupdate.

�Fundamentals: Weatherand crop fears are driving therally more than indications ofreal damage. The conditionrating is slipping lower, butthat’s a normal pattern intoAugust. Export activityremains robust, but userscould just as quickly chooseto stand aside if they feelprices are getting too high.Because of this year’s acreage,it will take significant prob-lems with the crop to dropproduction far enough topush the fundamental struc-ture toward becoming tootight.

✘Fail-safe: Leave an orderto boost sales to 60 percent ifNovember drops through$9.50.Wheat Strategy

�2010 crop: The trendin wheat remains strong.Prices are holding key lev-els. The market hit impor-tant resistance at $6.10 onChicago September. Saleswere increased to 60 per-cent when Chicago Septem-ber reached $5.42. If Sep-tember reaches $6, boostsales to 70 percent. Usecurrent strength for catch-up sales.

�2011 crop: A 10 percentsale was triggered whenChicago July 2011 futuresreached $6. Make an addition-al 15 percent sale if Julyreaches $6.60.

�Fundamentals: Thebasic fundamental pictureremains unchanged withglobal wheat supplies stillabundant. However, weathercontinues to negativelyimpact crops in the Black Searegion. In addition, StrategieGrain, a private analyst, low-ered its European Unionwheat estimate 2.8 percentbecause of hot/dry condi-tions.

The recent surge in grainprices — and the weakness ingold prices — has broughttheir relationship back to moretolerable levels. Over the lastfew months, the steady declinein grain prices and rise in goldprices had pushed grain pricesrelative to gold prices to newrecord highs.

Much of the shift in thepush to new highs had to dowith investors losing confi-dence in major industrial cur-rencies, the dollar included. Inlieu of investing money in tra-ditional vehicles, investors

Basis charts

pushed more of their portfo-lios into gold, driving its priceto a new record high. June’s$1,264.80-per-ounce recordhigh substantially eclipsed Jan-uary 1980’s $875 record.

Back in 2006 when thegold/grain relationshipspushed near the prior recordhighs, it was easier to foreseegrain prices moving higher tobring the relationship backinto a balance. But at thattime, investors had confidencein the world’s economies andtheir associated currencies.

At current levels, grain stillappears to be undervalued togold. Will grain prices moveup, or gold move down, tobring the price relationshipback into balance? In 2006,that was an easier question toanswer than today.

Today, there’s a lack of con-fidence in many economiesand their respective currencies.Still, recent changes in curren-cy cross relationships hint theanxiety that lifted gold pricesto new highs may be softening.

As long as there are no moreunexpected shocks, that couldtranslate into a softer gold mar-ket for a few weeks or months.Unlike 2006, when grain pricesrallied to bring the relationshipback into balance, it may be thatgold slides lower this time.

Cents per bu.

Grain and gold prices in better relationship

PERSPECTIVES


Broadband is changing the way we live. Forthose of us lucky enough to have access to high-speed Internet, it’s difficult to remember how wegot along without it.

With access to broadband, we can easily sell acar, rent an apartment, look for a job, read thenews, or manage a business.

The best advantage of the broadband networkis that it can connect us to the rest of the worldwhenever it suits our schedule and from almostanywhere we happen to be.

That is, unless we are in rural America.Today too few rural Americans can take

advantage of the opportunities broadband pro-vides. Only half of rural residents subscribe tobroadband, compared to 65 percent nationwide,because too many rural communities lack broad-band infrastructure.

Simply put, building a broadband infrastruc-ture is critical to creating jobs and economic

opportunity in rural America.With investments in broad-

band, we are fostering innova-tion and bringing America’s rur-al communities into the digitalage. A young person doesn’thave to move to the nearest cityto make a living. He or she cancreate, develop, and run a busi-ness at home in rural America.

A young parent can work,raise a family, and still connectwith business partners across

the country or around the world. With new orenhanced broadband access, the door to eco-nomic growth is open.

If rural communities had better access tohigh-speed Internet, the opportunities would beendless.

Farmers and ranchers would have up-to-the-minute commodity and weather information;schools could expand limited course offeringsthrough distance learning; and first responderswould have information they need to keep theircommunities safer.

Rural health care would improve, as medicalspecialists would be able to use telemedicine toprovide advanced diagnosis for patients or toconsult with colleagues at other hospitals.

At USDA, we are focused on creating thrivingrural communities where people want to live andraise families. We want every parent and grand-parent in rural America to be able to tell theirchild or grandchild that their hometown has theeconomic opportunities necessary to offer thema bright future.

The Obama administration recentlyannounced investment in 66 new broadband pro-jects nationwide, the second round of fundingfor broadband infrastructure from PresidentObama’s Recovery Act.

Thirty-seven of these projects will helpexpand broadband access in rural America.These projects not only will directly create morethan 5,000 jobs up front, but they also will spureconomic development in some of the nation’s

hardest-hit communities, creating jobs for yearsto come.

These funds will put people to work con-structing new facilities, erecting towers to trans-mit signals, and installing high speed broadbandservices in homes, businesses, and communityeducation, safety, and public health centers.

The investments also will foster long-termeconomic growth. The $7.5 billion provided willbenefit tens of millions of Americans and morethan 685,000 businesses, 900 healthcare facilitiesand 2,400 schools in all 50 states.

Illinois will see the impact of broadband whenthe Shawnee Telephone Co. connects homes,businesses, and community service providers infive small communities in Southeastern Illinois toits fiber optic broadband network.

Rural Development is supporting the projectwith a loan and grant totaling more than $7 mil-lion. As a result, homes, businesses, and commu-nity institutions, such as public schools, libraries,law enforcement, and medical care facilities, willbe able to tap into the Internet.

The impact of bringing broadband to ruralIllinois cannot be overstated or expressed anymore significantly than through the experience ofone Illinois farmer/businessman who wrote me.

The unnamed author wrote how the absenceof adequate internet bandwidth affected hislivelihood and his family.

He wrote: “Like many rural residents, I oper-ated my business from my home (for 21 years) . .. In April of 2010, the company I representedput all information on a system that was onlyavailable by Internet . . . In areas without broad-band, it simply makes commerce grind to a nearhalt.

“I was forced either to relocate my business toa larger town, continue to be increasingly crip-pled by slow service and decreased ability toserve my clients, or simply quit doing businesswith and for the company (I represented).” Thewriter did the latter.

Broadband, much like education, is the greatequalizer. Until we complete the initiative tobring high-speed Internet to our rural communi-ties, rural Illinois will continue to be at a disad-vantage in receiving quality health care, improvededucational opportunities, and potential businessadvantages.

USDA Rural Development is eager to helpmake these possibilities possible.

President Obama signed the American Recov-ery and Reinvestment Act of 2009 into law witha vision of knowing it will help America. In addi-tion to the jobs it will create and save in Illinoisand across the country, it will stimulate thenational economy.

In the longer-term, it is the foundation forsustainable growth and keeping us competitivewithin the global economy.

Colleen Callahan is state director of USDA RuralDevelopment. Her family raises cattle on their Kickapoofarm. Her e-mail address is [email protected].

Sports fans everywhereturned their attention to SouthAfrica as my country hostedthe biggest athletic event onthe planet — the World Cup.Teams from just about everynation competed, and peoplefrom all over the worldwatched in rapt attention.

There was no way of know-ing how many folks tuned intothe championship matchbetween the Netherlands andSpain, but some estimates putthe television audience atmore than 1 billion viewers.

It’s no exaggeration to saythat South Africa was truly on

the glob-al stage.

Ithinkwe’veproven

that South Africa can shine.When the tournament kickedoff a month ago, touristspoured in. Along with hugenumbers of television viewers,they not only cheered goalsand saves but they alsolearned about my country, itshistory, and its inhabitants.

Most of these guests andonlookers came away with apositive impression. SouthAfrica is a beautiful country.It’s full of friendly people.Although we have our prob-lems, we also have a lot tooffer.

In one area, we are anundisputed leader: agriculturalbiotechnology.

Farmers in South Africahave embraced geneticallymodified (GM) crops. Lastyear, we planted more than 5million acres of geneticallyenhanced corn, soybeans, andcotton.

The International Servicefor the Acquisition of Agri-Biotech Applications (ISAAA)lists South Africa as one of 15“biotech mega-countries.”Among other African nations,only Burkina Faso shares thisdistinction.

My personal experience istypical. I harvest corn andsoybeans on about 2,400 acresin the northeastern part ofSouth Africa, near the town ofMiddleburg in the province ofMpumalanga — a Zulu namethat means “place of the ris-ing sun.”

I began to research biotechcrops more than two decadesago, planting strip trials forseed companies. At first, theseearly versions of GM corndidn’t outperform conven-tional varieties. Yet they wereeasier to manage, so I startedworking with them.

In recent years, there’s beena remarkable turnaround. Theyields of GM crops havebeaten non-GM plants by

substantial margins. Over the last decade, my

food production has doubled.We owe this to biotechnology— all of my soybeans are GMas is most of the corn I plant— and other technology inno-vations.

I have access to the latestequipment technology and useprecision farming tools.

Many of my immediateneighbors have enjoyed simi-lar levels of success. We’rehoping to make even greaterstrides in the future, especiallyif drought-tolerant cropsbecome available.

Unfortunately, a largergroup of other neighbors —the farmers in nearby Africancountries — have not reapedthe benefits of biotechnology.Although the experience ofSouth Africa shows how muchcan be gained from using agri-culture’s latest tools, their gov-ernments have resisted GMcrops.

Part of this reluctance owesto a simple lack of under-standing. But they’ve alsocome under pressure fromEuropean governments thatprovide foreign aid and exportmarkets.

The European Union hasremained irrationally hostile toGM crops — and its hostilityhas blocked agriculturalprogress in Africa.

This is tragic. All aroundthe world, farmers are learn-ing how to grow more foodfor more people with biotech-nology and other 21st-centurytools. Africa, however, is dif-ferent: It’s the only continentwhere food production is inactual decline.

Things don’t have to be thisway. The example of SouthAfrica proves that my fellowAfricans shouldn’t suffer thecurse of food insecurity.

By taking advantage ofbiotechnology and other newapproaches to agriculture,farmers in my country aregrowing a lot more food thanwe did just a few years ago.Other farmers should have thesame opportunity.

This is the way forward forAfrica and its people.

There was a time, not solong ago, when South Africareceived a lot of unwelcomeattention. My country wastreated as an internationalpariah. Yet much has changed.

Today, in the areas of agri-culture and biotechnology, wecan be a model for Africa andthe rest of the world.

Michael Allen farms with his sonin the South African province ofMpumalanga. He is a member ofthe Truth About Trade & Tech-nology Global Farmer Network.

COLLEENCALLAHAN

LEVELINGTHE FIELD

Broadband equalizes opportunitiesfor rural areas

South African ag on world’s stage

MICHAELALLEN

guest columnist

Documents

FarmWeek July 19 2010