FarmWeek February 25 2013

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

I L L I NO I S A G R I CU L -TURE in the C lass room hasreceived $240,000 through thes a l e o f a g r i cu l t u r e spec i a l t ylicense plates. ..........................11

THE U.S. SUPREME COURTheard arguments last week in abiotech “seed saving” case that couldresult in a landmark decision, but thecourt may not rule until fall. ..............9

USING THIS MASCOT, theIllinois Soybean Association kickedoff its “This Bridge Needs Sup-port” campaign last fall, and bridgerepairs are in the news again. ........5

Monday, February 25, 2013 Two sections Volume 41, No. 8

IFB supports proposed regulations for horizontal fracking

also known as fracking. “It’s a very good framework

that protects farmers’ rights,”Reis told FarmWeek. “It is adelicate balance and the mostcomprehensive set of rules inthe United States.”Bradley added: “We wanted

to make sure we came up witha way to protect groundwater,communities, and farms inSouthern Illinois and also a wayfor an industry to developresponsibly.”Bill Bodine, Illinois Farm

Bureau associate director ofstate legislation, said, “FarmBureau policy supports regula-tions for hydraulic fracturingthat protect land and waterresources while allowing forthe commercial developmentof this resource. We feel theproposed regulatory structurestrikes that balance.”

Last week, IFB representa-tives attended a bipartisanpress conference with Reis,Bradley, and House leadershipfrom both parties.Reis described the bill nego-

tiations as “very contentiousand very intense.” Amongthose involved were lawmakersand representatives of stateagencies, the attorney general’sstaff, agriculture, the oil andgas industry, and environmen-tal groups. “We were able to bring

together a coalition to supportreasonable regulations,”Bradley said. “Everybody feelsgood about the process andhow it worked.” For the last 1.5 years, poten-

tial hydraulic fracturing hasbeen on hold and talk of a pos-sible moratorium chilled fur-ther development, according to

Reis. His district encompassesthe Southeastern Illinois areathat has seen much commercialinterest in hydraulic fracturing.As currently proposed, the

regulations would apply only tohigh-volume, horizontal wellsand would not impact tradi-tional hydraulic fracturing onvertical wells.Before construction could

begin, the Department of Nat-ural Resources (DNR) wouldhave to issue a permit. Welloperators would be required tohave pollution insurance, sub-mit a bond, and submit detailedplans about their fracking oper-ations.The state would establish

setback requirements fromwater sources and specifiedstructures, such as schools andchurches.The proposed regulations

also provide protection for sur-face landowners. Those includespecific requirements detailinghow land is to be restored topredrilling conditions after thedrilling and hydraulic fracturingprocess is completed.

BY MARTIN ROSSFarmWeekAmid a whirlwind of con-

gressional activity and anxi-ety, an Illinois congressionalfreshman sees high-rankinghopes for a five-year farmbill in 2013.The House Ag Committee

reportedly plans to assembleits farm bill in April. EastMoline Democrat and com-mittee member Cheri Bustosreported ranking committeeDemocrat Collin Peterson(D-Minn.) “feels better aboutthe prognosis for a five-yearfarm bill moving forward.”Peterson has huddled with

House Speaker John Boehner(R-Ohio) to ensure “that notonly we get something out ofthe Ag Committee, but that itbe brought to a vote by the

full House,” said Bustos.She said she was hopeful

committee freshmen includ-ing herself, TaylorvilleRepublican Rodney Davis,and Belleville Democrat BillEnyart would re-energize thepush for a five-year bill. Bustos chided the last

Congress for merely extend-ing 2008 farm bill provisions“at a time when farmers wereliving through the worstdrought in a generation.”“The farmers deserve cer-

tainty,” she told FarmWeeklast week in Peoria. However, despite Bustos’

hopeful outlook on the farmbill, other major concernsremain. Without agreement on a

budget/deficit alternativethis week, Congress faces

having to approve across-the-board “sequestration”cuts that could curtail keyUSDA services and pare thebudget baseline for future agprogram spending.The Senate Ag Committee

reportedly plans to take upfarm bill legislation in

March, despite a SenateDemocrat budget plan thatproposes to divert $27.5 bil-lion in direct payment fund-ing to long-term deficitreduction. Illinois FarmBureau seeks farm billapproval by Congress’August recess.Ag groups fear the budg-

et proposal would signifi-

cantly reduce funds avail-able for new House-Senatesafety net programs andcrop insurance. The Senate farm measure

proposed roughly $25 bil-lion in cuts not only incommodity programs, butalso in conservation andnutrition spending.Meanwhile, the Congres-

sional Budget Office (CBO)last week released its pro-posed ag baseline designedto guide 2013 farm billdevelopment. At a projected $950 bil-

lion in available spendingover 10 years, the new base-line poses a $30 billionreduction over CBO’s 2012“score,” but the proposedbudget hit was “not to themagnitude we’d expected,”

IFB President Philip Nelsonnoted.“We have myriad items

that are all coming about atonce,” he nonetheless said.“We’re very concernedwhen you put all theseissues to the timeframewe’re looking at today tobegin deliberations on afarm bill.“At the same time, we’re

looking at potential across-the-board cuts in theDepartment of Agricultureas we write this farm bill.”Nelson believes the CBO

baseline provides a “work-able” farm bill foundation,though IFB National Leg-islative Director AdamNielsen warns “the budgetax is only to get sharper” ifCongress delays action.

‘Farmers deserve certainty’Promising farm bill ‘prognosis’ despite looming concerns

See more coverageon page 4

BY KAY SHIPMANFarmWeekLegislation proposing a reg-

ulatory process for high-vol-ume hydraulic fracturing of oiland gas wells in Illinois wasintroduced by state Reps. JohnBradley (D-Marion) and DavidReis (R-Willow Hill) last week.Both sponsors called HB

2615 “historic.” It would estab-lish regulations for specificuses of hydraulic fracturing

Operators would berequired to disclose to DNR allchemicals used pre- and post-fracking. That informationwould be posted on DNR’swebsite. Companies would beallowed to request trade-secretprotection; however, theywould have to submit a detailedjustification for that action.Health professionals and

others would be able to obtaintrade-secret information totreat patients and respond toemergencies.Operators would be

required to conduct all phasesof the process in a way thatwould not endanger publichealth, life, property, andwildlife. They would berequired to conduct mechanicalintegrity testing before startingthe process and continuouslymonitor and record pressuresand the injection rate duringhydraulic fracturing operations.Other proposed require-

ments would govern fluid andwaste handling, air pollutioncontrol, water testing, and pub-lic information.

IFB lobbyists have been involved in lengthynegotiations to establish regulations forhigh-volume hydraulic fracturing that com-plies with IFB policy.

NELSON HONORED — Illinois Farm BureauPresident Philip Nelson was presented the Outstand-ing Service to Agriculture Award by the Illinois Societyof Professional Farm Managers and Rural Appraisersduring that organization’s recent annual meeting.Mark Wetzel, immediate past president of the soci-

ety, cited Nelson’s life-long service to various agricul-tural organizations within the state as well as his serv-ice on USDA committees and advisory boards.He noted that Nelson “started with the state FFA

Star Farmer citation in 1977 and has never sloweddown.” Nelson has served as president of the IFBsince 2003 and is on the American Farm Bureau Fed-eration Board of Directors.He and his family operate a fourth-generation grain

and livestock farm near Seneca.

CRP SIGN-UP — USDA last week announced itwill conduct a four-week general sign-up for the Con-servation Reserve Program (CRP) in late spring.The sign-up period will begin May 20 and end June

14.There currently are about 27 million acres enrolled

in CRP, which is a voluntary program available to agproducers to help them safeguard environmentallysensitive land.Contracts on 3.3 million CRP acres will expire on

Sept. 30. USDA encouraged producers with expiringcontracts or environmentally sensitive land to evaluatetheir options under CRP.For more information, visit a local FSA service cen-

ter or check the website {fsa.usda.gov}.

FIELD MOM TOUR — Illinois Farm Families’(IFF) field moms were scheduled to tour Steve Ward’sfarm near Sycamore last Saturday. Steve Ward and hisfather, John, operate a wean-to-finish hog farm. This year 20 urban and suburban moms from the

Chicago area were selected as the second group offield moms. They will tour six Illinois farms betweenFebruary and November this year for a firsthand lookat what farmers do every day. The field moms will getto know the farmers and ask questions as they tourbeef, pork, canning vegetables, dairy, and grain farms.The coalition of Illinois farm organizations that

makes up the IFF program includes the Illinois FarmBureau, Illinois Pork Producers, Illinois Corn Market-ing Board, Illinois Soybean Association, and the Illi-nois Beef Association.

FarmWeek Page 2 Monday, February 25, 2013

(ISSN0197-6680)

Vol. 41 No. 8 February 25, 2013

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

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STAFFEditorDave McClelland ([email protected])

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Quick Takes GALC

Tuesday: • Ag weather with an Illinois State Water Survey meteorol-ogist• Jennifer Tirey, bureau chief of marketing and promotionwith the Illinois Department of Agriculture• Jacob Meisner, Illinois Farm Bureau Young Leader• Erika Eckley, Center for Agricultural Law and TaxationWednesday:• Sue Hofer, Illinois Department of Revenue• Kayla Friend, public relations manager for the Central Illi-nois Food Bank• Chris Merrett, director of the Illinois Institute for Rural Affairs• Brad Clow, Country Financial crop claims managerThursday:• Illinois Beef Association representative• Rita Frazer live from the Commodity Classic • Doug Yoder, senior director of affiliate and risk manage-ment for Illinois Farm Bureau• Troy Frerichs, senior investment officer for Country FinancialFriday: • Sara Wyant, Agri-Pulse publisher• Mike Doherty, senior economist with Illinois Farm Bureau• Cynthia Haskins, manager of business development andcompliance with Illinois Farm Bureau

To find a radio station near you that carries the RFDRadio Network, go to FarmWeeknow.com, click on“Radio,” then click on “Affiliates.”

Dick Craig, left, DuPage County Farm Bureau member, chats with Scott Shearer, center, with the BockornyGroup, and Michael Stokke with the Farm Credit Administration during Illinois Farm Bureau’s GovernmentalAffairs Leadership Conference last week. Shearer and Stokke discussed the political landscape during theconference in Springfield. (Photo by Kay Shipman)

Ag working in a changed political landscape BY KAY SHIPMANFarmWeek

Farm Bureau leaders need to understand thechanged political landscape in the nation’s capitaland learn to work in it, two government expertssaid during the Illinois Farm Bureau Governmen-tal Affairs Leadership Conference last week inSpringfield.

Scott Shearer of the Bockorny Group andMichael Stokke of the Farm Credit Administra-tion shared their views not only of some chal-lenges facing agriculture but also the circum-stances under which farm leaders must work.

The farm bill will be written and voted uponby a larger percentage of new lawmakers com-pared to previous farm bills, Shearer noted.

Roughly 67 percent of the House and Senatehas been elected over the last 10 years, and 40percent of House Agriculture Committee mem-bers is new this year.

“It used to be congressmen were on the (agri-culture) committee for their (states’ main) com-modity,” Shearer said. “Now there are moreurban (committee) members with different inter-ests.”

He advised Farm Bureau leaders to becomeacquainted with Illinois’ new congressional mem-bers, especially those representing the Chicagoarea and those serving on the Agriculture Com-mittee.

Stokke also said it is critical that farmers reachout to congressmen.

“You want them to rely on you to be theirresource on agriculture policy,” he said. “Thesemembers want to get it (a farm bill) right and dono harm.”

Both Stokke and Shearer focused on the needfor compromise for passage of legislation.“There has to be a willingness on both sides to sitdown and work toward the middle,” Shearer said.

However, agriculture can provide something“unheard of in Washington ... optimism,” accord-ing to Stokke. He advised Farm Bureau leaders toemphasize that strength in their discussions withlawmakers.

“You in agriculture have an amazing story.Agriculture has outperformed the other (indus-try) sectors of the country,” Stokke said. “Younot only are feeding the country, you’re feedingthe world.”

Watershed workshopfocus bioenergy cropsand conservation

Researchers and farmers will discuss thepotential use of bioenergy crops as a conserva-tion practice at a March 8 workshop. The meet-ing will be from 8 a.m. to 12:30 p.m. in theFairbury First Baptist Church.

Bioenergy crops are a potential revenuesource on land that is less productive for grow-ing corn and soybeans, said Cristina Negri, anagronomist and environmental engineer withArgonne National Laboratory. Negri has beenresearching bioenergy crops in the Fairburyarea.

During the workshop, farmers and otherswill discuss their experiences in growing bioen-ergy crops, the crops’ suitability to grow inadverse soil conditions, yields, potential mar-kets, and water quality benefits.

The workshop is sponsored by the U.S.Department of Energy’s bioenergy technologyoffice.

Refreshments will be served.Questions should be directed to Negri at

[email protected] or 630-252-9662.

STATE Page 3 Monday, February 25, 2013 FarmWeek

Above, Illinois Farm Bureau Young Leader Committee member Doug Kirk of Vermilion Coun-ty, right, accepts food donations from Roger Walsh, a Livingston County Farm Bureau boardmember. (Photo by Kay Shipman) Right, IFB Young Leader Committee members Brent Pol-lard, left, of Winnebago-Boone County Farm Bureau, and Jared Finegan of Ford-IroquoisFarm Bureau, stack food donations from participants of the Governmental Affairs LeadershipConference last week. Looking on left to right are Kaliegh Friend and Kristy Gilmore, bothwith the Central Illinois Food Bank. The Young Leaders collected 532 pounds of food and$270 that will be distributed in the 21 Central Illinois counties served by the Food Bank. TheYoung Leaders met their goal and filled the bed of a Ford truck with food. The donations willbe applied toward their Harvest for All campaign totals. (Photo by Ken Kashian)

FILLING A FORD WITH FOOD

LAWMAKER, LEADER CHAT

BY KAY SHIPMANFarmWeek

Legislation and state gov-ernment actions that tookplace last week:

Farmland assessment lawchanges proposed — Leg-

islation proposing to amendthe state farmland assessmentlaw was introduced last weekby Rep. Frank Mautino (D-Spring Valley). Under HB2651, any increase or decreasein the equalized assessed value

by soil productivity index (PI)would not exceed 10 percentof the certified assessed valueof the state’s median soil PI.

The changes were proposedby the Illinois Department ofRevenue. Illinois Farm Bureausupports the legislation.

State buys land in fourcounties — The state paid$2.8 million for 547 acres infour counties to be used forpublic access. The largest pur-chase was 410 Pike County

acres southwest of Pittsfieldvalued at $1.8 million.

The funding came from theIllinois Open Lands Trust,which is funded by the gover-nor’s capital program andintended for public recreationand conservation purposes.

The other purchases were64 Ogle County acres, valuedat $450,000, to expand theLowden-Miller State Forest;71.8 McHenry County acres,valued at $511,000, to estab-

lish the Hackmatack NationalWildlife Refuge, the firstrefuge established in NorthernIllinois; and 0.94 of a Vermil-ion County acre, valued at$25,000, to expand the Kick-apoo State Recreation Area.

The Open Lands Trust isadministered by the IllinoisDepartment of NaturalResources. Since 1998, trustfunding has acquired 41,000acres for public recreation andconservation.

State Rep. Mary Flowers, right, (D-Chicago) chats with Warren-Henderson Farm Bureau leader DebMoore of Roseville, center, and Carol Ricketts, the county Farm Bureau manager, during a legislator re-ception in Springfield last week. Flowers was “adopted” by Warren-Henderson Farm Bureau throughthe Adopt-a-Legislator program. About 18 “adopted” lawmakers were among the nearly 70 legislatorswho discussed issues with Farm Bureau leaders during the Governmental Affairs Leadership Confer-ence. (Photo by Ken Kashian)

Feb. 26IFB Crop Insurance and Truck Regulations seminars, 8 a.m.,John A. Logan Community College’s H 127 and 128,Carterville, and 1 p.m., First Christian Church, Salem. To reg-ister, go to {ilfb.org/regionalseminars} at least three days priorto the event. For more information, email [email protected] orcall 309-557-3207.

Meet the Buyers event 9 a.m. to 5 p.m., Heartland CommunityCollege, Normal. Registration deadline is Friday. Call McLeanCounty Farm Bureau at 309-663-6497 to register.

Feb. 27IFB Crop Insurance and Truck Regulations seminars, 8 a.m.,The Holiday Hotel, Olney, and 1 p.m., Lake Land CommunityCollege’s West Building, Mattoon. To register, go to{ilfb.org/regionalseminars} at least three days prior to theevent. For more information, email [email protected] or call309-557-3207.

March 1-3Illinois Horse Fair, 9 a.m. to 7 p.m. Friday and Saturday,March 1 and 2, and 9 a.m. to 5 p.m. Sunday, March 3, at theIllinois State Fairgrounds, Springfield.

March 4IFB Crop Insurance and Truck Regulations seminar, 8 a.m.,Southeastern Illinois College, Harrisburg. To register, go to{ilfb.org/regionalseminars} at least three days prior to theevent. For more information, email [email protected] or call309-557-3207.

DATEBOOK

Springfield happenings

GOVERNMENTFarmWeek Page 4 Monday, February 25, 2013

Feds vs. states: What’s the right regulatory balance?BY MARTIN ROSSFarmWeek

U.S. Rep. John Shimkusargues state regulators are“every bit” as qualified astheir federal counterparts, andcloser to the ground — or theair or the water — they pro-tect.

In an effort to “set thestage for future discussions,”the Collinsville Republicanmoderated a House Energyand Commerce Committeehearing focusing on the roleof the states in environmentalprotection.

The U.S. EnvironmentalProtection Agency (EPA) is

it,” he told FarmWeek.“The clean air statute has

nothing to do with economics:If (EPA) finds something inthe environment endangershealth, it has to regulate it. Butwhen a state comes up with animplementation plan, EPAought to give some deferenceto how states want to grapplewith these things.”

Illinois Coal AssociationPresident Phillip Gonet cites arange of EPA proposals seenas an “economic train wreckfor coal” (see accompanyingstory). A new National Centerfor Policy Analysis reportquestions the future of coal

use in part due to the “massiveregulatory burden imposed oncoal power plants.”

Gonet noted Illinois EPAemissions limits are more strin-gent than those of the federalEPA. However, IEPA rules arenot as stringent as (EPA’s) pro-posed rules, and federal-statecoordination is a “reasonableapproach,” he argued.

“It’s appropriate for thefederal government to set aminimum standard (forstates),” Gonet toldFarmWeek. “I believe pro-posed regulations by the Oba-ma administration are settingthat bar too high.”

set for a shift in leadership,and ag interests are concernedabout the agency seekingbroader authority. Shimkusargued states “are by nomeans junior regulators” andoffer “the added bonus ofactually living in the communi-ties they are trying to makesafe.”

Last fall, a federal courtupheld EPA’s authority toissue federal nutrient stan-dards but ruled its nutrient cri-teria for Florida waters werearbitrary, unscientific, andunlawful.

Under the federal Clean AirAct, states submit state imple-

mentation plans outliningplans to implement nationalair quality standards, subjectto EPA approval. EPA has no such wide-rang-

ing authority under the CleanWater Act, but American FarmBureau Federation regulatoryspecialist Paul Schlegel arguedenvironmental interests “havealways wanted to make cleanwater like clean air.”

“State and local govern-ments are much closer to thereality of what’s going on onthe ground — the stateshave a role to play under theClean Water Act, and theyought to be allowed to play

The regulatory agenda:

Climate, CAFOs,and clean water

The administration, Congress, farmers, and the courtsappear poised to grapple over the scope of regulated “waters,”federal control over smaller livestock producers, and renewedefforts to curb climate change.

American Farm Bureau Federation (AFBF) regulatory spe-cialist Paul Schlegel suggested the U.S. Environmental Protec-tion Agency (EPA) this spring may attempt to formally rede-fine “waters of the U.S.” that would be subject to federal regu-lation.

On the air quality side, both the president’s State of theUnion address and newly appointed Secretary of State JohnKerry emphasized the global impact of greenhouse gas emis-sions and climate change.

Kerry, who will represent the U.S. in forthcoming interna-tional climate talks, warned “rising temperatures and rising sealevels will surely lead to rising costs down the road.” PresidentObama urged Congress to “pursue a bipartisan, market-basedsolution to climate change.”

Schlegel sees long odds on the House and Senate being ableto reach consensus either on comprehensive climate measuresor a “carbon tax” on greenhouse emissions such as that cur-rently championed by Sen. Barbara Boxer (D-Calif.).

“So what are we left with?” he posed. “What can theadministration do in a regulatory regime?”

Schlegel outlined possible moves by EPA in the monthsahead:

• Nutrient management. A Pennsylvania federal districtcourt is expected to rule on whether EPA can “impose its ownviews” on states regarding federal nutrient total maximum dai-ly load (TMDL) requirements within the northeast ChesapeakeBay.

AFBF and Pennsylvania Farm Bureau sued EPA for pre-scribing a so-called “pollution diet” for farmers and otherswithin the 64,000-square-mile watershed. Midwest interestsfear EPA may consider Chesapeake-style regulations for theMississippi River Basin.

“We’re relying on specific language in the (federal) CleanWater Act, contending that the way the law is crafted, it’s clearCongress gave states the primary role of developing andimplementing TMDLs,” Schlegel said.

• The CAFO corral. Schlegel sees EPA attempting to“tighten the noose” on livestock producers by requiring small-er animal feeding operations to register as regulated concen-trated animal feeding operations (CAFOs), based on the theo-retical impact of farm “dust and feathers” on water quality.

In December, EPA withdrew an order demanding a WestVirginia poultry grower obtain a Clean Water Act dischargepermit for storm water runoff.

However, EPA hasn’t backed away from its basic stance onon-ground livestock or poultry “pollutants.” Schlegel notedtalk of the agency seeking to regulate ammonia emissionsfrom CAFOs, as well. — Martin Ross

Bustos: Sequester impactspotentially wide-ranging

U.S. Rep. Cheri Bustosimplores bipartisan colleaguesto resolve budget issues “in areasonable way” before theseverity of “sequestration”kicks in.

During last week’s Houserecess, Bustos, an East MolineDemocrat, argued budgetsequestration could havewide-ranging economicimpacts especially within her17th District.

She visited regional smallbusinesses and defense con-tractors, a Canton medicaldevice manufacturer, andPeoria’s USDA National Cen-ter for Ag UtilizationResearch (NCAUR) to “learnas much as I could about thepossible impact of suchsevere actions as sequestra-tion.”

Across-the-board seques-tration, directed by Congressafter 2011 deficit reductiontalks failed, is set to begin Fri-day if Congress can’t reach abudget accord. Under sequestration, mili-

tary spending could bereduced by 7.5 percent,Medicare payments toproviders by 2 percent, othermandatory spending by 8 per-cent, and non-defense discre-tionary spending by 8.4 per-cent.

“These were designed tobe cuts so severe and drasticand harmful that our countrywould never get to thispoint,” Bustos said last weekin Peoria. “And here we are.That’s why I reached out to(House Speaker John Boehn-er) and said, ‘Leave us inWashington, where we canwork through this problemtogether. Don’t send us homeat this critical time.’”

The non-partisan Con-gressional Budget Office

predicts a possible l.3 per-cent contraction in the U.S.economy during the sixmonths after sequesterwould take effect, possiblypushing the nation back intoa recession.

Further, Bustos noted “amajor defense presence” inIllinois, including the RockIsland Arsenal — her district’slargest employer. The districtalso includes hundreds ofbusinesses that supply thedefense industry.

At the same time, Bustosstressed “how important a

place like (NCAUR) is notjust to Peoria, not just to theState of Illinois, but even toour country and world.”

Given NCAUR’s role infood safety, ag-based productdevelopment, and healthissues, she argued that “forevery dollar we invest, we getmore in return.”

“Ensuring we’re investingin what makes sense is a driv-er to me,” Bustos toldFarmWeek. “And a place likethe ag lab in Peoria makessense to invest in.” — MartinRoss

Mark Berhow, right, research chemist with Peoria’s USDA National Cen-ter for Ag Utilization Research, discusses plant-derived components thatcould prevent or delay chronic disease development with visiting U.S.House Ag Committee member Cheri Bustos, an East Moline Democrat.Following a center tour, she hailed the lab’s achievements, from devel-oping penicillin in 1941 and exploring potential new cancer therapiesto devising “a better kind of kitty litter” using ag-based ingredients. “Tothink that all that is coming out of Peoria with the help of 100 Ph.Dswalking through the door every day,” Bustos told FarmWeek. (Photo byKate O’Hara, National Center for Ag Utilization Research)

IFB National Legislative Director Adam Nielsendiscussed budget concerns and the need for af ive-year farm bi l l wi th U.S. Rep. AdamKinzinger, a Manteno Republican, last week.

GOVERNMENT Page 5 Monday, February 25, 2013 FarmWeek

State-private cooperation key?

Rural bridges forgotten first link in ag chainBY MARTIN ROSSFarmWeekIn what Soy Transportation

Coalition (STC) Director MikeSteenhoek deemed a rare Stateof the Union nod to trans-portation, President Obamaproposed a new “Fix-it-First”program aimed at hiring

Americans to attack “our mosturgent (infrastructure)repairs.”Obama specifically cited the

nation’s 70,000-some “struc-turally deficient” bridges. Steen-hoek noted a “dramatic underin-vestment toward our nation’sbridge inventory,” urging thefederal govern-ment to be “amore robust part-ner” with states insurface infrastruc-ture financing.“Locks and

dams and rail and interstatehighways are very important,”Steenhoek told FarmWeek.“But the modes of transporta-tion that are most tangible forfarmers are these rural roadsand bridges.”Obama also proposed a

“Partnership to Rebuild Amer-ica” that would tap private

capital to help fund “modernports to move our goods,modern pipelines to withstanda storm, modern schools wor-thy of our children.” Steenhoek hailed White

House recognition of “the rolepublic-private partnerships canplay in addressing our trans-

portation challenges.”STC is seeking partnerships

with state transportationdepartments in a pilot projectfocusing on bridge assessmenttechnology. Steenhoek argues current

reliance on visual inspectionshas resulted in a significant

percentage ofbridges desig-nated withunnecessary or“overly conser-vative” loadpostings, limited

access on some rural roads, orbridges being questionablyidentified for rehabilitation orreplacement.That can force ag traffic to

take unwarranted, costlydetours and forces agencies towastefully allocate scarceresources, he said. Use of advanced sensing

technologies offers more accu-rate rural bridge assessment,he said. STC is willing to sharethe cost of those technologieswith transportation agencieswithin its 11-state territory,including Illinois’ Departmentof Transportation.Iowa is the first state to join

forces with STC: Testing hasbegun with assistance fromIowa State University’s Collegeof Engineering. Steenhoek saidhe hopes success in Iowa mightattract other “cash-strapped”states, though he admits theSTC initiative is “a differentmodel for a lot of states.”“They don’t have a real

legacy of engaging the privatesector in cost-sharing initia-tives like this,” Steenhoek said.“There are a lot more hoopsyou have to jump through.You have to engage both thestate and the county.“The problem’s not as

Using this agitated mascot, the Illinois SoybeanAssociation (ISA) kicked off its “This BridgeNeeds Support” campaign last fall to raiseawareness o f rura l br idge de ter iora t ionthroughout the state. The campaign, which fo-cuses on local, state, and federal efforts, is theresult of a “critical bridge assessment” targetingbridges in Adams, Bureau, Clinton, DeKalb, Iro-quois, McLean, Macoupin, Peoria, Shelby, andWayne counties. Those counties represent eachIllinois crop reporting district plus Peoria, a cen-tral point for grain origination and Illinois Riverstaging.

BRIDGE NUMBERS

70,000The estimated number of structurally deficient bridges

across the U.S.

3,000The number of structurally deficient bridges in Illinois,

according to the Illinois Department of Transportationand the Federal Highway Administration.

$10.25The reported economic return for every dollar invested

in repairing or updating deficient bridges.

2,500The average number of extra trips Stockland Grain Co.

must make to its rail loading facility in Iroquois Countyannually because of reduced weight limits on the 105-year-old North Road Bridge.

severe with state bridges as it iswith rural bridges owned bymunicipalities or, usually, thecounty. But the state DOT

gives approval for the processby which bridges are evaluatedor subsequently rated.”

Immigration reform impacts the dairy caseRockford dairyman Brent

Pollard hopes Congress willrecognize the public and eco-nomic impact of a strongdairy sector as it focuses onimmigration reform. Labor challenges “add

another layer of uncertaintyto an already uncertain indus-try,” the Illinois Farm Bureauboard advisory member said.Pollard, IFB state YoungLeader Committee chairman,stressed the need for an“expedient and streamlined”process that ensures an “avail-able, competent workforce.”

and general herd care.“After they’ve been estab-

lished for awhile, a lot ofthem work up to herdsman-level activities: lower manage-ment roles on the farm; over-seeing an area such as calving,transition cows, the heifer sideof the operation,” he related.“We pay well above mini-

mum wage — these are attrac-tive jobs. These people wantto do the work because ofwhat we pay for these jobs.We’re just looking for a simpleprogram that allows people toget visas to work when theywant to work.”

The immigration debate hita snag last week after Presi-dent Obama introduced a planthat seeks a potential “path tocitizenship” for currentlyundocumented immigrants,heightened border security,and required electronic verifi-cation of prospective workers,but does not include a guestworker program. That omission would ren-

der Obama’s plan “dead onarrival,” warned Sen. MarcoRubio (R-Fla.), one of eightbipartisan senators who havedrafted a framework forreform. Under the current system,

ag employers are expected toprove good-faith efforts inemploying legal workers butare unable to personally verifyworker documentation.“We try to do everything to

the letter of the law, as it’s laidout for us,” Pollard toldFarmWeek. “But if a workergives us incorrect or falsifiedpapers, there’s nothing we cando about it.” — Martin Ross

Labor availability is“becoming a bigger issue”amid proliferation of special-ized crop and livestock opera-tions, said IFB PresidentPhilip Nelson. Nelson said he sees 2013 as

a possible “defining moment”for immigration reform, withbipartisan lawmakers “fleshingout” proposals aimed at satisfy-ing both proponents of tighterborder security and those whosupport options for undocu-mented workers across the U.S. Pollard, who milks 100

cows, notes widespread use of

migrant labor throughout Illi-nois’ dairy sector, not only inthe milking parlor but also forgrooming, pen maintenance,

‘We’re just looking for a sim-ple program that allows peo-ple to get visas to work whenthey want to work.’

— Brent PollardIllinois Farm Bureau Young Leader chairman

IFB and Illinois Department of Transportationrepresentatives discussed challenges in localbridge funding at the IFB Governmental Af-fairs Leadership Conference.

Ag Undersecretary KevinConcannon last weekannounced tough new meas-ures as a part of USDA’s ongo-ing effort to ensure integrity inthe federal SupplementalNutrition Assistance Program(SNAP) — i.e., food stamps.The announcement codified

an expanded legal definition ofSNAP benefit “trafficking”

that includes not only thedirect exchange of SNAP ben-efits for cash but also otherindirect methods of obtainingcash for SNAP benefits.The expanded definition

now includes so-called “waterdumping,” or the purchase ofbeverages in containers withreturnable deposits for the solepurpose of discarding the con-

tents and returning the con-tainers to obtain cash refunds;and the sale or purchase ofproducts originally purchasedwith SNAP benefits for pur-poses of exchanging thoseproducts for cash or otheritems.Nutrition programs includ-

ing SNAP fall under farm billauthority.

USDA tightens SNAP regulations

FarmWeekNow.comL is ten to Mike Steenhoek’scomments about the public-private bridge ini t iat ive atFarmWeekNow.com

OUTLOOKFarmWeek Page 6 Monday, February 25, 2013

USDA predicts rebound in crop production, lower pricesBY DANIEL GRANTFarmWeekUSDA last week predicted

crop production will reboundin a big way and prices subse-quently will decline this grow-ing season.Of course, USDA issued a

similar forecast a year ago forthe 2012 season before thedrought set in and flippedthose predictions upside down.“We’re expecting a rebound

in yields, record crops, andlower prices,” Joe Glauber,

USDA chief economist, saidlast week at the USDA AgOutlook Forum in Arlington,Va.“One may have a sense of

déjà vu as the forecast is simi-lar to last year’s forecast, whichalso called for record corn andsoybean crops.”USDA issued another bull-

ish crop production forecastthis year based on its expecta-

tion for a return to more nor-mal weather.Strong crop prices, prof-

itable crop insurance guaran-tees, and more land availablefrom the Conservation Re-serve Program (contracts for2.5 million CRP acres expiredlast fall) are expected to en-courage U.S. farmers to plantthe second-most acres of corn,soybeans, and wheat, com-bined, since 1982.USDA projected plantings

this year will total 96.5 millionacres of corn (down from 97.2million last year), 77.5 millionacres of soybeans (up 300,000acres), and 56 million acres ofwheat (also up 300,000).If those plantings are real-

ized and yields return to trend-line averages, USDA projectedcrop production this year willtotal a record 14.53 billionbushels for corn (up 34.8 per-cent from last year), 3.4 billionbushels for beans (up 12.9 per-cent), and 2.1 billion bushelsof wheat (down 7.4 percent).Wheat production is expect-

ed to slip a bit from last yeardue to possible crop abandon-ment in the Plains where dry-

ness remains a major issue.“There’s still significant

drought in the Central Plains,”Glauber said. “But it’s improved a lot in

the eastern Corn Belt.”Glauber noted there is little

correlation between rainfall to-tals from one year to the next,which is part of the reason

USDA predicted a return tonormal yields this season.A return to more normal

weather and large plantingslikely will boost crop invento-ries and sink prices. Globalcorn stocks as a percent of usecurrently are projected to bethe lowest since 1973/74.USDA projected 2013/14

season average prices of $4.80for corn, $10.50 for beans, and$7 for wheat. “Large global supplies

should lead to stock rebuildingin 2013/14,” Glauber said.“But markets will remainvolatile until production levelsare known with more certain-ty.”

Joe Glauber, left, USDA chief economist, discusses his forecast for farm returns with Mike Doherty, center, Illi-nois Farm Bureau senior economist and policy analyst, and Robert Thompson, right, senior fellow for theChicago Council on Global Affairs and University of Illinois professor emeritus. Glauber gave the forecast lastweek at the USDA Ag Outlook Forum in Arlington, Va. (Photo by Daniel Grant)

Glauber: Farm economy strong, expected to remain so this yearThe farm economy is strong

and should remain that way thisyear, said Joe Glauber, USDAchief economist. “Despite the drought, I think

the ag economy is still verystrong,” Glauber said last weekat the USDA Ag OutlookForum in Arlington, Va.USDA last week projected

U.S. ag exports for fiscal year2013 will reach a record-high$142 billion, up $6.2 billionfrom a year ago.The boost in the value of ex-

ports is due to high commodityprices, record sales of soybeans(worth more than $22 billion),

and a 1.3 percent increase inmeat exports.Corn exports, however, are

down 38 percent in volume. Infact, USDA projected Brazil thisyear will surpass the U.S. in cornexports.High commodity prices,

record exports, and crop insur-ance payments helped U.S.farmers earn a record-high$135.6 billion in net cash in-come last year, according toUSDA estimates.Indemnity payments for 2012

losses currently total $14.7 bil-lion and could reach a record-high $17 billion.

This year, net cash income isprojected to slip 9 percent to$123.5 billion.“The financial situation is

quite solid,” Glauber said.“However, there are sharp dif-ferences between sectors. Croplosses hit uninsured and under-insured farmers much harder.”Crop losses that led to feed

shortages and higher feed costsalso weighed heavily on marginsfor livestock producers.“The U.S. cattle and calf herd

is at its lowest level since 1952,”Glauber said. “Strong pork andbroiler exports helped keepmargins higher than they would

FarmWeekNow.comVisit FarmWeekNow.com to lis-ten to Mike Doherty’s observa-tions about the recent USDAOutlook Forum.

have been otherwise, but highfeed costs have limited hog,poultry, and dairy expansion.”Glauber predicted livestock

farmers will have some reliefthis year in the form of higherprices for their products andlower feed costs later in theyear. USDA projected pricesthis year will increase 5.4 per-cent for cattle, 3.5 percent forhogs, and 4 percent for milk.Other economic measures

are encouraging for the ag in-dustry.USDA projected farm equity

will reach record levels in 2012and 2013. Meanwhile, the farmdebt-to-asset ratio for 2013 isforecast at 10.2 percent, whichwould be the lowest level since

USDA began calculating it in1960.

Farm assets for 2013 also areprojected to set a new record at$2.732 trillion.On the downside, farm ex-

penses this year are projectedto total $316.6 billion. Feedcosts are expected to increase$4 billion, labor costs couldrise by almost $3 billion, andrental expenses were forecastto jump $1.7 billion. —Daniel Grant

Cattle herd projected to shrink; hog, chicken numbers could growThe U.S. cattle herd likely will

continue to shrink, according tomarket analysts.If so, cattle prices are expect-

ed to increase this year and pos-sibly climb higher in 2014.“North American cattle sup-

plies will be curtailed for at leasttwo years,” said Don Close, vicepresident of food and ag re-search at Rabo AgriFinance.“We’re going to see prices gohigher.”The U.S. cattle herd as of Jan.

1 totaled 89.3 million head, down1.2 percent from last year. That’sthe smallest herd since 1952.USDA last week in its

monthly cattle on feed reportestimated the inventory of cat-tle and calves on feed as of Feb.

1 totaled 11.1 million head,down 6 percent from a year ago.Placements in feedlots during

January totaled 1.88 million, up2 percent. Placements prior tothe report declined for sevenconsecutive months.Ron Plain, University of Mis-

souri economist, said this year’scattle numbers imply the inven-tory in January 2014 could beabout 1.5 percent smaller thanlast month.The smaller herd indicates

prices could climb higher. Plainestimated fed cattle prices thisyear could average around $130per hundredweight, on a liveweight basis.Overall, there is a shrinking

supply of cattle in North Amer-

ica, according to Close. One ofthe only areas of the world withan expanding cattle herd isBrazil.However, hog and chicken

production could grow this yearin the U.S., particularly if cropproduction returns to normaland feed prices stabilize.“Broiler production is up 2

percent so far this year,” Closesaid. “They (poultry producers)are positioning themselves toregain marketshare” as a re-placement for beef.Hog numbers in the U.S.

could grow, too. Close predictedsow numbers in next month’squarterly hogs and pigs reportcould increase 1.5 percent. —Daniel Grant

FarmWeekNow.comTo listen to comments by USDAchief economist Joe Glauber,go to FarmWeekNow.com.

Auction CalendarTues., Feb. 26. 9 a.m. Annual SpringFarm Machinery Con. Auc. CAR-

LINVILLE, IL. Rick Stewart, Auctioneer.www.rickstewartauctions.com orwww.biddersandbuyers.com

Tues., Feb. 26. 10 a.m. Modern CleanFarm Eq. Edwin Lawrence Estate, WAR-RENSBURG, IL. Mike Maske AuctionService. www.maskeauction.com

Tues., Feb. 26. Douglas Co. Land Auc.Justus Seaman Trust Farm. Soy CapitalAg Services. www.soycapitalag.com

Wed., Feb. 27. 10 a.m. Bureau and StarkCo.’s Farmland Auc. Brummel Realty, LLCWed., Feb. 27. Online Only Unreserved

Auc. www.bigiron.comWed., Feb. 27. 10 a.m. Bureau/StarkCounties Farmland. Paul and Cluskey,WYANET, IL. Rediger Auction Service

and Brummel Realty, LLC. www.rickrediger.com or www.brummelrealty.com

Thurs., Feb. 28. McLean Co. Farmland.Len Jones Trust Heirs. Soy Capital AgServices. www.soycapitalag.comThurs., Feb. 28. 9 a.m. Peoria Co.

Farmland. Marcus W. Britton, DUNLAP,IL. Jim Maloof Farm and Land, JohnLeezer. www.illinoisfarms4sale.comFri., Mar. 1. 10 a.m. McLean Co. Land

Auc. STANFORD, IL. Farmers NationalCo. www.farmersnational.com

Fri., Mar. 1 and Sat., Mar. 2. 9:30 a.m.both days. Consignment Auction.

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

Sat., Mar. 2. 10 a.m. Farm MachineryEstate Auc. Estate of Edward

Matzenbacher, WATERLOO, IL. SchallerAuc. Service.

www.schallerauctionservice.com orwww.auctionzip.com

Sat., Mar. 2. 9 a.m. Consignment Auc.MURPHYSBORO, IL. Canning AuctionService. www.canningauctions.com or

auctionzip.comSat., Mar. 2. 9 a.m. Farm Machinery.Dean Monke Farm, MT. OLIVE, IL.

Ahrens and Niemeier. www.a-nauctions.com

Sat., Mar. 2. 26th Annual Con. Auc.Murrayville-Woodson EmergencyAmbulance Service. mweas.com

Sat., Mar. 2. 10 a.m. Calhoun Co. LandAuc. PLEASANT HILL, IL. Buy A Farm.

buyafarm.comSat., Mar. 2. 9 a.m. Farm & ConstructionEq. Consignment Auc. TREMONT, IL. Cal

Kaufman and Brent Schmidgall,Auctioneers. [email protected]

or [email protected]

Page 7 Monday, February 25, 2013 FarmWeek

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Analyst: Uncertainty abounds in crop marketsBY DANIEL GRANTFarmWeek

Farmers should prepare foranother year of volatility inthe commodity markets.

Tight crop supplies, strongdemand, and weather uncer-tainly will keep the market onedge, according to Don Close,vice president of food andagribusiness research at Rabo

AgriFinance,which is partof Rabobank.“This

approachingcrop (season)has the high-est level ofuncertaintyI’ve seen inthe 35 years

I’ve been doing this,” Closesaid last week at the Grain andFeed Association of Illinois’convention and trade show inSt. Louis. “It doesn’t matterwhat market (is the focus). Itall hinges on weather.”

Crop supplies are tight inthe U.S. due in large part todrought losses last year.USDA this month lowered

ending stocks of soybeans to arazor-thin 125 million bushels.

Close projected endingstocks of corn could sink to560 million bushels, from thecurrent level of 632 millionbushels, prior to harvest.

“We’re using beans at afaster pace than we will beable to sustain,” Close said.“We could see a lot of pricevolatility the next two weeks tomonth (as the world transi-tions to South American beansupplies).”

Rabobank recently pre-dicted average crop prices(for corn and wheat) thisyear could peak in the sec-ond quarter before tailingoff in the third and fourth

quarters (see graphic).Close, however, empha-

sized the price projections are

based on normal growing con-ditions this season. If adverseweather impacts yields again

this year, it could be a muchdifferent price scenario.

“Clearly we’ve seen(drought) improvement in theeastern Corn Belt,” he said.“But there’s still a great deal ofconcern in states such asNebraska, Kansas, and Iowafor this coming summer.”

Drought conditions cur-rently are having a negativeimpact on the prospects forthe U.S. hard red winter wheatcrop in the Southern Plains.

“The volatility we’ve seen inthe marketplace the last severalyears is not going to get better;it probably will get worse,”Close added. “It could bemore stress. But it also couldpresent opportunities.”Don Close

GFAI members deal with storage, supply issuesThe drought eased in Illinois

in recent months, but it will con-tinue to affect operations atcountry elevators and terminalsuntil harvest.

Drought-stressed crops lastyear not only reduced the vol-ume of grain and oilseeds deliv-ered to many elevators, but it

problems shipping crops on theIllinois and Mississippi riversdue to low water levels. The situ-ation has improved due torecent rains, but it continues tobe a concern.

“(Barge) operators are stilltrying to make up for lost busi-ness the last several months,”Paul Rohde of WaterwaysCouncil Inc. told GFAI mem-bers. “We should be in decent

shape (this spring if the U.S.Army Corps of Engineers con-tinues to remove rock pinnaclesobstructing barge movements inthe Mississippi) and presumingwe get close to normal rainfall.”

Goals and priorities forGFAI this year include engagingmembership, increasing partici-pation in its scholarship pro-gram, expanding health andsafety training, and working withnewly elected lawmakers tofamiliarize them with industryissues, Kierna said.

“We see over 50 percent ofscholarship recipients comeback to work in the industry,” hesaid. “That’s what it’s all about,bringing young talent into theindustry.”

GFAI will expand safetytraining opportunities for mem-bers by adding a new staff per-son to focus on that area. GFAIalso provides training and cur-riculum used at the new AsmarkInstitute training facility inBloomington. — Daniel Grant

also created storage and qualityissues at some locations due toaflatoxin.

Crop production in Illinoislast year declined 34 percent forcorn and 10 percent for beanscompared to 2011.

“This grain year has beenstressful from a reduced volume

standpoint,” Brian Kierna, man-ager of the Demeter/SeegersGrain elevator in Harvard, toldFarmWeek last week at theGrain and Feed Association of

Illinois (GFAI)120th annualconvention andtrade show inSt. Louis.“But we’realways onegood cropaway frombuilding com-fortable sup-

plies,” he said.Tight crop supplies have

heightened volatility at many ele-vators.

“In past drought years wehad big inventories to absorb it,”said Kierna, who has been in thegrain industry since 1984. “Butthis drought we didn’t (have theinventories).”

Kierna, the new president ofGFAI, also believes aflatoxinissues could resurface, particu-larly in the southern half of thestate, when the temperaturewarms up this spring.

“It’s not unthinkable (foraflatoxin levels in corn) to gofrom 10 parts per billion (ppb)to 20 parts ppb (the thresholdfor human consumption) just instorage,” he said. “The situationhas forced some corn into thepipeline sooner rather than lat-er.”

The drought also created

Brian Kierna

Cattle feeders meeting March 6The annual Illinois Cattle Feeders Day will be Wednesday,

March 6, at the Ogle County Farm Bureau building in Oregon.The event will begin at 9 a.m. and conclude at 4 p.m. A com-

plimentary lunch will be provided.The seminar will highlight low-stress cattle handling, changing

market parameters, future economic considerations in the beefindustry, and the latest in feeding strategies.

Registration is free, but seating is limited. The registrationdeadline is March 1. Call Travis Meteer at 217-823-1340 to signup for the meeting. More information is available at {web.exten-sion.Illinois.edu/oardc}. Click on 2013 Illinois Cattle FeedersDay on the right side of the page.

THE COURTS Page 9 Monday, February 25, 2013 FarmWeek

High court reviews potential landmark seed case BY MARTIN ROSSFarmWeek

The U.S. Supreme Courtheard arguments last week in abiotech “seed saving” casethat, according to a CornellUniversity plant patent expert,could have “a significant chill-ing effect” on biotech invest-ment.

Bowman v. Monsanto Co.pits the St. Louis-basedbiotech company against Ver-non Bowman, an Indianafarmer charged with illegallyreplanting Roundup Readysoybean seed.

Bowman signed growercontracts with Monsanto forhis original Roundup Readycrop but subsequently plantedbeans purchased from an ele-vator that had some beanscontaining Monsanto’s tech-nology. He then replantedseed from plantings that sur-vived a Roundup herbicideapplication.

Bowman argued he had theright to freely use products hepurchased legally, but a federaljudge ordered Bowman to pay

contract law “and would prob-ably prevail,” Lesser said. Butwhile a ruling for Monsanto

would affirm seed patentrights, he warned companieslikely would have to prosecute

contract infringement on acase-by-case basis.

A ruling against Monsantocould affect continued avail-ability of traits even after theirpatents expire.

Monsanto has indicated itwould not take action againstgrowers who replant seed withthe trait following RoundupReady patent expiration in2014. However, while the traitno longer would be patent-protected, other companiescould enforce patents on cropvarieties that include expiredtraits.

“If (Bowman v. Monsanto)goes against them, they would-n’t be able to do that, either,”Lesser advised.

Monsanto more than $84,000for patent infringement.

According to Cornell’sWilliam Lesser, the case focus-es on patent rights regarding“self-replicating” productssuch as seeds — a currently ill-defined “anomaly” within theintellectual property arena.

Monsanto attorney SethWaxman maintained that“without the ability to limitreproduction of soybeans con-taining this patented trait,”Monsanto would have beenunable to commercialize theRoundup Ready trait.

“Monsanto and otherbiotech companies invest enor-mous amounts of money notonly in the development ofthese traits but also in gettingregulatory approval, (product)registration, and so on,” Lessertold FarmWeek.

“If, in the worst-case sce-nario, they sold seed and some-one could save their harvestand replant it, they reallywouldn’t have much time at allto recoup the investmentthey’ve put into these enor-

mously expensive biotechtraits.

The high court may not rule

until fall, Lesser suggested.Seed companies could pur-

sue illegal seed savers under

For the first time since the introduction ofbiotech crops almost two decades ago, develop-ing countries in 2012 grew biotech crops onmore land than did industrialized countries.

That’s according to a report released lastweek by the International Service for the Acqui-sition of Agri-Biotech Applications.

Developing nations planted 52 percent of

global biotech crops in 2012, up from 50 per-cent a year earlier and higher than the 48 per-cent that industrialized countries, including theU.S., grew last year.

In 2012, the growth rate for biotech cropswas more than three times as fast and five timesas large in developing countries vs. industrialnations.

Developing countries pick up biotech pace

‘Monsanto and other biotech compa-n ies invest enormous amounts ofmoney not only in the development ofthese traits but also in getting regulato-ry approval, (product) registration, andso on.’

— William LesserCornell University

Oil, grocery groupsask Supreme Courtto reconsider E15

Biofuels interests last week appeared unfazed by a propos-al to take E15 to the U.S. Supreme Court.

The American Petroleum Institute (API) and the GroceryManufacturers Association (GMA) have asked the SupremeCourt to reverse an August District of Columbia circuit courtdecision to dismiss the groups’ challenge to the Environmen-tal Protection Agency’s (EPA) decision to allow 15 percentethanol blends to be sold for use in 2001 model year or latercars.

“Good luck with that,” Renewable Fuels Association(RFA) President Bob Dinneen mused. “We now knowwhy gas prices keep going up and up — to fundunnecessary Big Oil lawsuits to protect their monopolyon the fuel market.”

The groups’ original suit argued EPA’s E15 decisionwas not within the agency’s legal authority. API, GMA,and affiliated groups maintained that under the CleanAir Act, the EPA administrator may grant a waiver fora new fuel additive only if it “will not cause or con-tribute to a failure of any emission control device orsystem.”

RFA Friday was uncertain when the high court might con-sider the API-GMA request.

The Illinois Department ofNatural Resources (IDNR) ishosting brainstorming sessionsfor the upcoming Conserva-tion Congress.

Each session will start at 7p.m. and last about twohours.

Dates and locations include:Tuesday and Wednesday,Heartland Community College,

Normal; March 4 and 5, West-ern Illinois University’s, Molinecampus; March 12, 13, and 14,South Shore Cultural Center,Chicago; and March 21 and 22,Southwestern Illinois College,Belleville.

The Conservation Con-gress will be held in Sep-tember but a date has yet tobe determined.

IDNR schedules idea sessionsfor Conservation Congress

FarmWeek Page 10 Monday, February 25, 2013

RFD Radio Network broadcasters Rita Frazer and Alan Jarand.

We have Illinois covered for you

R853T3

Station Location County AM/FM

WRMJ-FM Aledo Mercer 102.3WBGZ-AM Alton Madison 1570WIBH-AM Anna Union 1440WBIG-AM Aurora Kane 1280WBWN-FM Bloomington McLean 104.1WJBC-A/F Bloomington McLean 1230/ 93.7WLMD-FM Bushnell McDonough 104.7WKRO-AM Cairo Alexander 1490WYEC-FM Cambridge Henry 93.9/102WBYS-AM Canton Fulton 1560WCDD-FM Canton Fulton 107.9WROY-AM Carmi White 1460WCAZ-AM Carthage Hancock 990WYXY-FM Champaign Champaign 99.1WRJM-A/F Charleston Coles 1270/107WHOW-AM Clinton Dewitt 1520WITY-AM Danville Vermillion 980WDZQ-FM Decatur Macon 95.1WSOY-AM Decatur Macon 1340WLBK-A/F DeKalb DeKalb 1360/98.9WIXN-AM Dixon Lee 1460WDQN-FM DuQuoin Perry 1580WKJT-FM Effi ngham Effi ngham 102.3WRMN-AM Elgin Kane 1410WFIW-A/F Fairfi eld Wayne 1390/104.9

For the complete picture of what’s happening in ag, listen to the RFD Radio Network®.Tune in to your favorite program on these local radio stations:

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MEETINGS Page 11 Monday, February 25, 2013 FarmWeek

Vilsack: USDA seeks to minimize farm risksBY DANIEL GRANTFarmWeekFarming always has been

and always will be a riskybusiness.USDA,

however, istaking stepsto help farm-ers minimizetheir risk sothey’re betterprepared tohandle thechallenges.

“We’re trying to mitigatethe effects of drought,” AgSecretary Tom Vilsack saidlast week during his keynoteaddress at the USDA Ag

pest forecasting, increasedsoil management efforts, andimproved outreach to mini-mize future risks.There also are a number

of man-made risks thatcould hinder farming in thenearby and long-term future,according to the ag secretary.USDA is faced with mak-

ing mandated budget cuts of5 to 6 percent across theboard come Friday unlessCongress acts. There also isgreat uncertainty in farmingcaused by the lack of a newfarm bill.“Some of these risks (in

agriculture) can be solvedif Congress does its job,”

Vilsack said.One of the other great

challenges for agriculture,according to Vilsack and for-mer Sen. Tom Daschle, whoalso spoke at the Ag OutlookForum, is closing the infor-mation gap between farmersand consumers.“We need to bridge the

gap between people whoproduce food and those whoconsume it,” said Daschle,senior policy adviser forDLA Piper law firm.Daschle said scientific

advances in crop productioncan help farmers producemore food with fewer inputs.But improving crops and

production systems will takean investment of time andmoney.“We’re not investing

enough to improve ag pro-ductivity,” Daschle said.He said he also believes

more research is needed todevelop systems that betterdeliver food to regions ofthe world that need it.“Thirty to 50 percent of

food produced in the worldrots or goes uneaten,”Daschle added.

Outlook Forum in Arlington,Va.The theme of the event

was “Managing Risk in the21st Century.”USDA last year formed a

drought task force andimplemented steps to helpfarmers survive the drought.Those included such thingsas opening ConservationReserve Program ground forgrazing and relaxing cropinsurance premium pay-ments. Long-term, Vilsack

believes multi-croppingstrategies, such as the use ofdouble-crops or cover crops,also could benefit farmers,

the soil, and the environ-ment.“It (multi-cropping) is

another tool to manage therisk of weather,” he said.“There are many differentproduction systems peoplemay want to use.”Weather risks could inten-

sify in the future.“There’s no doubt the cli-

mate is changing,” Vilsacksaid. “Higher temperatureslead to more intense weatherpatterns, which increasestress on crops and live-stock.”USDA’s climate change

adaptation plan recommendsmeasures such as expanded

Tom Vilsack

Meet the Buyers event planned for Northern IllinoisFarmers will have an

opportunity for one-on-onemeetings with regional pro-duce buyers at a Meet theBuyers event from 9 a.m. to5 p.m. Wednesday, March 6,in the DeKalb County FarmBureau building in Sycamore.Interested farmers must reg-ister by March 4.Participating buyers will

provide an overview of theirorganization and their pro-curement needs. “We have grocery buyers,

foodservice distributors, anorganization that makesdirect-to-consumer deliver-ies, another organization thatprepares meals for schools,and a state procurementdepartment attending,” saidCynthia Haskins, IllinoisFarm Bureau manager ofbusiness development andcompliance.The day will start with

University of Illinois-Exten-sion, presentations on Mar-ketReady and Good Agricul-ture Practices (GAPs).MarketReady is designed

to teach growers best com-mercial business practices forretail markets. GAPs are a setof recommendations thatcan help improve producequality and safety.Hosting the event are the

DeKalb County Farm Bureauand surrounding countyFarm Bureaus, U of I Exten-sion, IFB, Illinois Depart-ment of Agriculture (IDOA),and the Illinois SpecialtyGrowers Association. “In this industry, the diffi-

culty for producers often liesin making the right connec-tions. These events are theperfect setting for the properpeople to meet and beginbuilding working relation-ships,” said Kendra Buchanan,

IDOA local foods liaison.“The interest for local

food, in particular freshfruits and vegetables, contin-ues to grow,” said Greg Mill-burg, DeKalb County FarmBureau manager. “We have organizations

traveling as far away as St.Louis and Chicago in addi-tion to several organizationslocated right here in our

community that want to meetwith Illinois farmers who aregrowing fresh fruits and veg-etables.”

The event is open andfree to farmers from acrossIllinois, but they have to reg-ister by March 4.For information or to reg-

ister, call the DeKalb CountyFarm Bureau at 815-756-6361.

IAITC earns $240,000 from ag platesIllinois Agriculture in the Classroom (IAITC) has received

$240,000 through the sale of agriculture specialty licenseplates. Statewide, about 2,800vehicles are sporting the spe-cial plates.For each new ag specialty

plate, IAITC receives $25 ofthe $40 fee with $15 going to

the secretary of state’s office.For each renewed plate, IAITC receives $25 of the $27

renewal fee with the remainder going to the secretary ofstate.The plates were first offered in 2007-08.

FarmWeek

ADVERTISING DEADLINESREADER SUBMITTED CLASSIFIED ADS (LINE ADS)

Wednesday at 10 a.m.COMMERCIAL DISPLAY ADS (BORDERED ADS)

(Including but not limited to: livestock, auctions, equipment)

Monday at 4:30 p.m.N-04W

IFB IN ACTIONFarmWeek Page 12 Monday, February 25, 2013

Choose the soybeans that have a legacy all their own: FS HiSOY®. The first proprietary soybean

brand, HiSOY has been a part of the land for nearly 50 years. Grow proud and pass it on.

See your local FS member company orvisit www.fshisoy.com

©2012 GROWMARK, Inc. S13269

YOU INHERIT THE PAST BUT CONTROL YOUR FUTURE.



IFB study tour to address animal care issues in Europe

Illinois Farm Bureau’s2013 study tour will concen-trate on animal care issuesand how they have evolvedin the European Union(EU).

The objective of thetour is to expose Illinoisfarmer leaders first-hand tothe consumer, retail, leg-islative, and other stake-holders who affectedchange on EU livestockproduction methods.

The tour, tentativelyscheduled June 23 throughJuly 2, will include only 10at-large farmers this year. It

will include visits in theUnited Kingdom, France,Belgium, Holland, Germany,and Denmark.

Selected farmers mustshow active involvement inlivestock production andmarketing and be well versedon animal care issues relatedto their production.

Tour participants alsomust meet certain criteria,including:

• Be a voting member.• Be able to fund approxi-

mately one-third of the totaltour cost ($1,500 to $2,000).

• Give presentations

about the trip after its con-clusion and media interviewsbefore and after the trip.

In addition, for this studytour, participants also will beexpected to provide activeleadership (visiting legisla-tors, food companies, con-sumer groups) on animalcare issues.

There are other provi-sions, and county FarmBureaus have applicationforms and further details.IFB is to receive the applica-tions back from the countiesby the end of the day Friday,March 15.

GETTING GEAR FOR FB ACT

Will County Farm Bureau member Jerry Davidson accepts FB ACTsupplies from Jenny Harrison, an administrative assistant in the Illi-nois Farm Bureau Governmental Affairs and Commodities Division,during the Governmental Affairs Leadership Conference last week.FB ACT is the Farm Bureau Agricultural Contact Team. Davidsonand other county FB ACT chairmen received supplies for workingwith legislators and other elected officials on behalf of Farm Bu-reau. (Photo by Kay Shipman)

AITC sprouts corny lessons during FFA WeekBY KAY SHIPMANFarmWeek

Inquisitive Monticellofifth graders learned theparts of a corn kernel andthe many uses of corn last

week, but they really delvedinto learning about corn bysculpting starch packingpeanuts.

Dan Maggart, generalmanager of Piatt FS, dis-cussed with the studentsthe sources of their mealsand the factors that makeCentral Illinois an ideallocation to grow corn.

“I think it’s so importantfor kids to know where theirfood comes from and to teachthem about agriculture asmuch as we can,” Maggart toldFarmWeek.

Agriculture in the Class-room (AITC) lessons in Mon-ticello and elsewhere aroundthe state have been assisted byGROWMARK’s $75,000 dona-tion to the IAA Foundationlast year to support ag literacyefforts.

To mark National FFAWeek, agriculture students

from Monticello HighSchool helped the youngerstudents learn about differ-ent aspects of corn and itshistory.

Emily Bakken, Piatt Coun-ty Farm Bureau manager, andIllinois Farm Bureau manag-er trainee Kate Lansawhelped the high school stu-dents as they did hands-onactivities with the elementarystudents.

With giggles and groans,teams of youngsters competedto build the largest standingsculpture from corn starchpacking peanuts. Afterward,each student made coloredcorn starch putty in a sandwichbag.

“The corn starch particlesturn to a solid and a liquid allat once. Isn’t that cool?” Lan-saw asked the students.

“It’s cool,” oneanswered.

Dan Maggart, general manager of Piatt FS, shows sweet corn seed toWashington Elementary fifth graders in Monticello last week. Maggartwas joined by Monticello High School ag students, Piatt County FarmBureau manager Emily Bakken, and Illinois Farm Bureau managertrainee Kate Lansaw. Ag literacy programs in Monticello and elsewherein Illinois have been assisted by GROWMARK’s $75,000 donation tothe IAA Foundation last year to support Illinois Agriculture in the Class-room. (Photo by Kay Shipman)

FROM THE COUNTIES Page 13 Monday, February 25, 2013 FarmWeek

ADAMS — Farm Bureauwill sponsor a View-

point luncheon at 11:30 a.m.Monday, March 4, at the FarmBureau office. Sen. John Sulli-van (D-Rushville) and Rep. JilTracy (R-Mt. Sterling) will bethe speakers. Call the FarmBureau office at 222-7305 forreservations.

BUREAU — FarmBureau will sponsor a

trucking regulation and cropinsurance seminar from 8 a.m.to 12:30 p.m. Tuesday, March12, at the Geneseo MooseLodge. Advanced registrationis requested. Call the FarmBureau office at 875-6468 toregister.• Farm Bureau, the Univer-

sity of Illinois Extension, andAg View FS will host iPadBasics and iPad for Agricul-ture classes from either 3 to 5p.m. or 6 to 8 p.m. Monday,March 18, at the BureauCounty Extension office inPrinceton. Cost is $10 formembers and $15 for non-members. Registered 4-H vol-unteers and Bureau Countyteachers who are using Ag inthe Classroom may attend for$10. Call the Farm Bureauoffice at 875-6468 or [email protected] to registeror for more information. • Farm Bureau will co-spon-

sor separate grain handling safe-ty training sessions from 8 a.m.to 12 p.m. and 1 to 5 p.m. Tues-day, March 5, at the Black HawkCollege Community EducationCenter. The training is open tograin elevator employees, farm-ers, farm employees, and com-mercial operators. Call the FarmBureau office at 875-6468 oremail [email protected] to reg-ister or for more information.

COLES — The dead-line for Farm Bureau

Foundation scholarship appli-cations is March 15. Call theFarm Bureau office at 345-3276 or email [email protected] for an applica-tion or more information. • Farm Bureau’s Farm Mall

Show will be Friday throughSunday, March 1 to 3, at theCross County Mall in Mattoon.Young Leaders will host a kid-die tractor pull at 12:30 p.m.Saturday, March 2, for childrenweighing up to 100 pounds.Registration will be at noon.Call the farm Bureau office at345-3276 for more informa-tion.

CRAWFORD — FarmBureau’s annual meeting

will be at 6 p.m. Thursday atthe Robinson Community Cen-ter. Rich Guebert Jr., IllinoisFarm Bureau vice president,will be the speaker. Call theFarm Bureau office at 544-3792 for reservations. Reserva-tion deadline is Monday.

EDGAR — FarmBureau will sponsor a

technology meeting from 9:30

outlook meeting at 6 p.m.Wednesday, March 13, at Cele-brations 150 in Utica. DaveDickey, WILL Radio AM 580;Jacquie Voeks, Stewart Peter-son Group of Indiana; CurtKimmell, Bates Commoditiesof Normal; and Mike ZuZolo,Global Commodity Analyticsof Indiana will be the speakers.Call 252-3077 by March 9 forreservations.

LEE — Country Finan-cial will sponsor a farm

estate planning seminar from11 a.m. to noon Wednesday atthe Farm Bureau office. RickMorgan, Country Financialsecurity consultant, and DanHawkins, local attorney, will bethe speakers. Call the FarmBureau office at 625-4876 oryour local Country Financialrepresentative for reservations.• Deadline to pay member-

ship dues is March 1. Call theFarm Bureau office at 857-3531 if you did not receive adues notice.• Farm Bureau will sponsor

a Stroke Detection Plus screen-ing from 9 a.m. to 4:30 p.m.Tuesday, March 12, at the FarmBureau office. Cost for FarmBureau members will be $100;$135 for non-members. CallStroke Detection Plus at 1-877-732-8258 to schedule anappointment.

LIVINGSTON — TheMarketing Committee

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

MACON — FarmBureau will host a pol-

icy development meeting at6:30 p.m. Wednesday in theFarm Bureau auditorium. Illi-nois Farm Bureau staff willfacilitate the meeting. Themeeting is open to all votingmembers. Call the FarmBureau office at 877-2436 formore information.

MONTGOMERY —Montgomery and

Macoupin County FarmBureaus welcome O’ReillyAuto Parts in Litchfield andMcKay Auto Parts Inc. inLitchfield, Hillsboro, Nokomis,Gillespie, Staunton, Carlinville,and Virden as new member-benefit providers. Memberswill receive a 10 percent dis-count at each store. Member-ship card must be shown attime of purchase. • Farm Bureau Foundation

scholarships are available tostudents entering college dur-ing the 2013-2014 schoolyear who are Farm Bureaumembers or a child of a

Farm Bureau member andpursing an agricultural-relat-ed field of study. Six $1,500scholarships will be awarded.Applications are available at{montgomerycountyfb.com}.Application deadline is noonMonday, March 11.

MOULTRIE — TheSullivan FFA Alumni

will host a dinner at 4:30 p.m.and a live auction at 6 p.m.Saturday, March 9, at the highschool gym. Go to {ffachap-ter.net/il/sullivan} for a salebill.

PEORIA — The FarmersShare of the Food Dollar

breakfast will be from 7 to 11a.m. Saturday, March 9, at theExposition Gardens in Peoria.Cost is 85 cents. • Farm Bureau will host a

weather and market outlookmeeting at 9 a.m. Tuesday,March 12, in the Farm Bureauauditorium. Pete Manhart, BatesCommodities, and ChuckCollins, WEEK and WHOImeteorologist, will be the speak-ers. • Farm Bureau will sponsor

an equine roundtable at 6:30p.m. Wednesday, March 13, inthe Farm Bureau auditorium. JaySolomon, University of IllinoisExtension, will be the speaker.

ROCK ISLAND —Farm Bureau will

cosponsor a market outlookmeeting at 6:15 Thursday, March7, at the Moline Viking Club.Mike McClellan, Mobile Weath-er Team Inc., and Mike Schaver,Gold Star FS, will be the speak-ers. Cost is $20 in advance and$30 at the door. Call the FarmBureau office at 736-7432 forreservations.

VERMILION — FarmBureau Foundation will

host a “Luau for Learning” triv-ia night at 7:30 p.m. Saturday,March 2, at the DanvilleKnights of Columbus Hall.Registration is $100 per table ofeight. Proceeds will benefit theAg in the Classroom program. • Farm Bureau will bag gro-

ceries and farmer volunteerswill meet with consumers from2 to 4 p.m. Friday at Danvillearea County Markets to kick offag month in Illinois.

WAYNE — FarmBureau’s annual meet-

ing will be at 6 p.m. Friday,March 15, at the CumberlandPresbyterian Church in Fair-field. Alan Jarand, RFD RadioNetwork, will be the speaker.Call the Farm Bureau office at842-3342 by March 8 to regis-ter. The annual meeting officialnotice will be available in theFebruary edition of theWabash Valley Ag News or at{waynecfb.com}.

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

to 10:30 a.m. Tuesday. Partici-pants are asked to bring theiriPhone, smart phone, tablet,iPad, and favorite apps toshare. There will be a limitednumber of devices availablefor demo purposes. Discus-sion will include increasingefficiency through the use ofapps. For reservations, call theFarm Bureau office at 465-8511 or email [email protected].

FORD-IROQUOIS —Farm Bureau will host a

Viewpoint breakfast at 7:30a.m. Wednesday at the FarmBureau building. A crop insur-ance meeting will be heldimmediately following. A sec-ond Viewpoint breakfast will beheld at 7:30 a.m. Thursday,March 7, at the Happy DaysDiner in Roberts.

HENRY — FarmBureau Foundation

scholarships are available at{henrycofarmbureau.org} or byemailing [email protected] $1,000 scholarships andfive $2,000 Wilbert and CarolKeppy Foundation scholarshipswill be awarded. Applicationsdeadline is Friday. • Henry, Bureau, and Stark

County Farm Bureaus and theGrain Handling Safety Coali-tion will sponsor separate grainhandling safety training sessionsfrom 8 a.m. to 12 p.m. and 1 to5 p.m. Tuesday, March 5, at theBlack Hawk College Communi-ty Education Center. Registra-tion deadline is Monday. Callthe Farm Bureau office at 937-2411 to register or for moreinformation. • Farm Bureau will cospon-

sor a weather and market out-look meeting at 6:15 p.m.Thursday, March 7, at theMoline Viking Club. MikeMcClellan, Mobile WeatherTeam, and Mike Schaver, GoldStar FS, will be the speakers.Cost is $20 in advance and $30at the door. Call the FarmBureau office at 937-2411 toregister. • Farm Bureau will host a

crop insurance and truck regu-lations seminar at 8 a.m. Tues-day, March 12, at the GeneseoMoose Lodge. Registration isrequested. Call 309-557-3207,go to {ilfb.org}, or email [email protected] to register.

JACKSON — The Mar-keting Committee will

host a weather outlook andsoils and tiling meeting at 6p.m. Thursday at the FarmBureau office. Nick Hausen,WSIL News 3 meteorologist,and Sam Inforante and ScottMartin of the NaturalResources Conservation Serv-ice will be the speakers. Regis-tration is not required butappreciated. Call the FarmBureau office at 684-3129 formore information.

KANKAKEE — FarmBureau’s annual meeting

will be at 5:30 p.m. Thursday,March 7, at the Hilton GardenRiverstone Conference Centerin Kankakee. Steffan Nass, Fed-eral Bureau of Investigationspecial agent, will be the speak-er. He works to prevent agri-terrorism as a member of theWeapons of Mass DestructionSpringfield Division. Cost is$15 for members and $30 fornon-members. Call the FarmBureau office at 932-7471 fortickets.

KENDALL — TheYoung Leaders will

sponsor an estate/successionplanning meeting at 10 a.m.Thursday at the Kendall Coun-ty Extension office. DennyPrentice and Dan Howes,Country Financial agents, willbe the speakers. Call the FarmBureau office at 553-7403 forreservations by Wednesday. • The Farm Bureau Founda-

tion annual meeting will be at 7p.m. Monday, March 11, with aregular board meeting follow-ing. • Applications for Founda-

tion scholarships are availableto LaSalle County high schoolseniors or college studentsmajoring in agriculture. Call theFarm Bureau office at 553-7403 for an application ormore information. Applica-tions must be in the FarmBureau office by July 1. • Kendall, Will, and Grundy

County Farm Bureaus willsponsor the Tri-County Sum-mer Ag Institute July 17 to 19and 22 and 23. Contact theProfessional DevelopmentAlliance office in Joliet to regis-ter. Teachers can receive threehours of graduate credit fromAurora University for partici-pating. Call the Farm Bureauoffice at 553-7403 for moreinformation. • Prime Timers will sponsor

a bus trip leaving at 8:45 a.m.Tuesday, March 12, from theFarm Bureau office to theChicago Flower Show. Cost is$38. Call the Farm Bureauoffice for reservations. • Farm Bureau will sponsor

an “On the Road” meeting at1:30 p.m. Thursday, March 14,at the Farm Bureau office.Kevin Rund, Illinois FarmBureau transportation expert,will be the speaker.

LASALLE — Founda-tion scholarship applica-

tions are available. One $1,500scholarship will be awarded toa high school senior who willbe enrolling in an ag-relatedfield of study. One $1,500scholarship will be awarded toa student who is currentlyenrolled in an ag credited col-lege in an ag-related field ofstudy. Call the Farm Bureauoffice at 433-0371 or go to{lasallecfb.org} for an applica-tion or more information.• The Stockman’s Associa-

tion will sponsor a commodity

PROFITABILITYFarmWeek Page 14 Monday, February 25, 2013

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn2/14/2013 40.4 30.3 9.52/7/2013 30.8 23.3 14.8Last year 38.5 22.5 34.9Season total 1078.8 653.6 336.5Previous season total 835.8 716.1 776.1USDA projected total 1345 1050 950Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10-12 lbs. $32.25-$57.00 $42.90 40 lbs. NA NA

Receipts This Week Last Week 101,361 69,560*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $75.26 $81.12 -$5.86 Live $55.69 $60.03 -$4.34

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

Steers $123.00 $122.96 0.04Heifers $123.00 $123.00 0.00

USDA five-state area slaughter cattle price

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

This week Prev. week Change $140.62 $142.03 -$1.41

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

Slaughter prices - Negotiated, Live, wooled and shorn 126-181 lbs. for106.49-135 $cwt. (wtd. ave. 119.60)

No silver bullets, but ke-mo sah-bees existBY LANCE RUPERTWhen I was a young boy

I occasionally watched TheLone Ranger on TV. Thereare a few iconic phrasesand visuals from the showmany of us can recall: • A masked hero riding

on a white stallion callingout “Hi-yo Silver, away!” • A loyal sidekick named

Tonto who called the LoneRanger “Ke-mo sah-bee,”or trusted friend (as youread this you probably caneven hear the William TellOverture playing in thebackground). • Finally, the famous sil-

ver bullet that was used byThe Lone Ranger and hasever since been a phrase to

We must be aware of andstrive to manage the issuesof weed and pest resistanceto active ingredients cur-rently available. Manufac-turers will continue toinvest in research anddevelopment to keep bring-ing new innovations toaddress an ever-evolvingagriculture.However, it’s everyone’s

job to help extend the lifeand effectiveness of currentand future tools available tocontrol and manage poten-tial yield-limiting factorssuch as weeds, disease, andinsect pests. Using multiple methods

or modes of action to con-trol and manage pests is an

important agronomic prac-tice that maximizes yield,thereby increasing produc-tion income, while prolong-ing the life of our manage-ment tools.The Lone Ranger was

blessed with a trustedfriend, Tonto, who wasalways there to help him intimes of need. Likewise,farmers have trusted advis-ers in their local crop spe-cialist and local FS teams,who work hard to providethe best solutions to helpfarmers be more profitable.

Lance Ruppert is FS Seedsales and marketing manager.His email address is [email protected].

signify amythicalidea, con-cept, orproduct thatsolves prob-lems. In the past

20 yearsagriculturehas been

blessed with new technolo-gies which could be seen assilver bullets. WhenRoundUp Ready soybeansfirst hit the market in themid-1990s, the ability tocontrol weeds in soybeanfields was revolutionary. When corn borer traits

were introduced, corn borercontrol and the subsequent

yield increases were tremen-dous. And, when cornrootworm traits werelaunched, they changed thecorn growing landscape likeno other technology had.

Each of these technologi-cal advancements took agri-culture to new levels of pro-ductivity and could have beencalled “silver bullets” fortheir ability to almost com-pletely governor the peststhey were developed to con-trol. Unfortunately, we all

know that silver bulletsdon’t really exist and, in thecase of agriculture, MotherNature often finds a way toadapt and overcome ourtechnology.

Lance Rupert

This chart offers a glance at possible corn, soybean, and wheat produc-er payouts in 2013 under the extended Average Crop Revenue Election(ACRE) program, based on potential state yield and national price trig-gers. For example, if the national price trigger for corn were $4 perbushel and the state yield trigger were 105 bushels per acre (top left), afarmer might expect a $194-per-acre payment. As part of the currentextension of 2008 farm bill provisions, farmers will be permitted tonewly enroll in or drop out of the program for 2013. For a farm to re-ceive an ACRE payment, farm revenue must be less than the program’sfarm revenue benchmark. In most cases, the farm-level payment equalsthe state ACRE payment times 0.85 times the ratio of individual farm-to-state yields. (Information compiled by Doug Yoder, Illinois Farm Bureau)

Funds still missing in MF Global, PFGBest cases

Customer protections proposed in wake of bankruptciesBY DANIEL GRANTFarmWeekIt appears customers whose

accounts were frozen whenMF Global filed for bankrupt-cy last year could get most oftheir money back.But the outcome doesn’t

look as rosy for those wholost money invested withPeregrine Financial Group(PFGBest).About $1.6 billion in cus-

tomer segregated funds van-ished at MF Global as com-

ties customers in the future.“It became clear (after

the two bankruptcies lastyear) there needs to bereforms in the way the(futures) industry does busi-ness,” Roe said.A customer protection

fund would be private andcarry re-insurance.

“We’re stress-testing itnow,” Roe said.If a customer protection

fund had been implementedin 2004, it would have beenable to absorb the MF Glob-al and PFGBest bankrupt-cies without breaking intore-insurance, according toRoe.

pany leaders moved funds totry to improve MF Global’sfinancial statement.The good news is MF

Global had about $41 billionin assets when it filed forbankruptcy. The bad news issome of the money is tied upin safe-harbor accounts.“We’re in a little better

position now, but there’s stilla long way to go,” John Roe,president of Roe CapitalManagement and spokesmanfor the Commodity Cus-

tomer Coalition, said lastweek at the Grain and FeedAssociation of Illinois’ con-vention and trade show inSt. Louis.A legal dispute in the MF

Global case recently wasresolved, which released$333 million in customerproperty in the U.S. and$294 million in the UnitedKingdom.The recent releases raised

recoveries in the MF Globalcase to about 93 percent. Itis the eighth-largest bank-ruptcy in U.S. history, Roenoted.The PFGBest case was

similar in that customer seg-regated funds disappeared.But the key difference inthat case is the $220 millionin missing funds was stolenand previously paid out.Former PFGBest CEO

Russell Wasendorf wasarrested and faces numerousfederal charges and the pos-sibility of decades in prison.“The PFGBest case is a

completely different story(than the MF Global bank-ruptcy),” said Roe, whodescribed it as a Ponzischeme. “The customer poolis severely underfunded. It’sa huge mess … .”The PFGBest case is fur-

ther complicated by the factthat its Forex and metalsaccounts were unsecuredand not protected by thesame laws as the futuresaccounts.Roe estimated distribu-

tion of funds to formerPFGBest customers mayamount to 30 to 50 cents onthe dollar.Roe and the coalition are

pushing for the creation of acommodity customer protec-tion fund to insure commodi-

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

Bloomington, Illinois

AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

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

CASH STRATEGISTCorn Strategy

ü2012 crop: Even thoughcorn prices remain soft, theyhave fallen to a level thatshould present limited down-side risk. Because of thedepth of the break, we’ve low-ered our target to make catch-up sales to $7.25 on Mayfutures. Plan to add to sales ifprices reach that level. Checkthe Hotline.

ü2013 crop: Upsidepotential for rebounds hasdeclined because of the depthof the break. Use rallies to$5.75 for catch-up sales. Wemay add a sale if Decemberhits that level. Check the Hot-line.

vFundamentals: Slackexport demand continues tobe the biggest drag on themarket. Persistent slippage inthe wheat market has beenadding to the pressure in theworld trade. On the plus side,ethanol grind profitability hasimproved slightly, but couldbe short lived with the energymarket declining again. Lack-luster farmer selling and tightsupplies are supporting thecash market.Soybean Strategy

ü2012 crop: With SouthAmerican harvest accelerating,demand for U.S. soybeans hasonly a limited time span.Price another 10 percent now,boosting your sales total to 90percent.

ü2013 crop:New-cropprices are weaker than old-cropbecause of potential for a signif-icant increase in supplies. Use arally to $12.85 on Novemberfutures for catch-up sales.

vFundamentals:Renewed Chinese buying inthe wake of their return fromholiday carried prices up thispast week. It’s said crushdemand has pulled their portstocks back down to relativelynormal levels, helping promptmore near term imports. Thepace of Brazilian harvest isaccelerating. About 30 per-cent of the Mato Grosso crophas been harvested, with 16percent of Brazil’s crop hav-ing been gathered. Recentrains should have at least sta-bilized potential for theArgentine crop. As it is, out-

put from those two countriesand Uruguay and Paraguayshould reach 5.4 billionbushels this year.Wheat Strategy

ü2012 crop: Wheat pricescontinue to trace out a choppysideways pattern. Wait forprices to rebound before mak-ing needed catch-up sales.

ü2013 crop: Wait forChicago July to trade above$7.48 before making catch-upsales. New-crop sales stand at35 percent complete.

vFundamentals:Demand for U.S. wheat is

showing signs of improvingfollowing a recent purchasefrom Egypt, and reports thatChina bought a significantquantity of wheat. USDAannounced a sale of 110,000metric tons of soft red winterwheat to an unknown destina-tion. Upside potential is beingstifled by improved conditionsin the U.S. Great Plains, withthe recent winter storm bring-ing much needed moisture.However, the critical timeperiod will come this springwhen the crop breaks dorman-cy, as soil moisture reservesare still lacking.

Cents per bu.

The soybean ‘fundamental dance’There’s been a lot made of the

slow harvest and delay in soybeanshipments out of Brazil the lastfew weeks. It has pushed someextra business to the U.S., espe-cially from China.The vessel line-up to load out

of Brazil’s two main ports,Paranagua and Santos, has grownlarge. The latest data indicate 82boats are waiting to load atParanagua and 39 at Santos,although not all of those are slat-ed to load soybeans.Harvest in Brazil is accelerat-

ing, with nearly 30 percent har-vested in Mato Grosso, while 22percent has been harvested inParana. The latter’s harvest isespecially important because it’s arelatively short haul to port. It’s important to remember

more than 60 percent of the cropalready has been priced, makingsignificant quantities available forexport.You’ll notice on average Chi-

nese soybean imports tend toincrease from February into June.Since the beginning of the mar-keting year, the Chinese cumula-tive import total is about 3 per-cent behind last year. But thathas improved markedly the lasttwo months. Port stocks are

thought to be about normal atthis time.The issue the trade has trouble

dealing with is whether Braziland Argentina have the ability tohandle the world’s business. In2010 and 2011, the combinedexports for those two countriesin May was more than 8.2 millionmetric tons. Given modest port improve-

ments, monthly exports could hit9 million metric tons this year.That’s more than 50 percenthigher than last year’s peakmonthly Chinese soybeanimports. That suggests Brazil and

Argentina have the capacity tonot only supply China but poten-tially the rest of the world as well— or nearly so.And even if our present

exports pace threatens to makeour supplies too tight before thenew crop arrives, there’s a prece-dent of U.S. processors import-ing soybeans to crush. Both Cargill and Owensboro

Grain imported soybeans in thesummer of 1997. The key iswhether South American prices getto a large enough discount to makeimports economically feasible.Livestock feeders in the

Southeast also are notable forimporting soybean meal and cornwhen the economics justify it.Hence, soybean stocks could gettight, but maybe not tight enoughto justify higher prices. We won’trun out!

PROFITABILITY Page 15 Monday, February 25, 2013 FarmWeek

PERSPECTIVESFarmWeek Page 16 Monday, February 25, 2013

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LETTERS TO THE EDITOR

Microloan gains footing;answers faster credit need

Throughout my tenure as stateexecutive director for the Illinois FarmService Agency (FSA), I have met sev-eral small and beginning farmers andranchers, military veterans, and disad-vantaged producers interested in mak-ing a living in production agriculture.For many, the high cost of buying

land and equipment can be prohibi-tive, compelling newcomers and thosestruggling against the odds to takerisks to finance their dreams by relyingon credit cards and personal loanswith high interest rates.

I am keenly aware, too, that theaverage age of our farmers and ranch-ers is increasing. I am concernedabout where the next generation of

farmers and rancherswill come from. USDA understands

the needs of thesesmall, beginning, andspecialty crop farmers.

Through FSA’sFarm Loan Programsdivision, the depart-ment responded tothose needs by devel-oping a new microloanprogram that will pro-

vide up to $35,000 to help bolsterthese farmers during their start-upyears.

Likewise, it will assist small, estab-lished farmers who find themselves inextenuating financial circumstances.

Microloansare like otheroperatingloans. They can

be used topurchase live-stock, equip-ment, feed,seed, fertiliz-er, and relatedsupplies.

And here’sa real benefitwhen compared to those credit cardsand personal loans: The current inter-est rate for a microloan is 1.125 per-cent.

It is imperative that we use solu-tions like the microloan to provideaccess to credit to those just startingout or those farming on a smallerscale in order to grow American agri-culture.

It’s important because agriculturecan provide new jobs that will buildour economy and ensure a safe andaffordable food supply at home andabroad. In addition, these loans keep peo-

ple living in our rural communities,sending their children to our localschools, and doing business in ourlocal shops.

Microloans are unlike traditionalFSA loans. Applying for them is a

simpler, more flexible process.By reducing the application form

from 17 pages to eight and by modify-ing requirements for experience, it‘seasy and far more convenient for bothour customers and our employees.

Although some production experi-ence is necessary, there are manyfarmers who may not meet the mana-gerial requirements for traditionalloans but may be eligible for amicroloan.

FSA will consider an applicant’ssmall business experience, experiencewith a self-guided apprenticeship, andspecialized education to meet the pre-requisite.

As the country moves toward morelocal food sources and joins the farm-to-table movement, there is anincreasing number of people goingback to the farm and selling theirproducts through farmers’ marketsand community-supported agriculture.Microloans are perfect for those whowant to grow niche crops to selldirectly to ethnic markets, farmers’markets, or consumers.

Young future farmers and ranchersalso will benefit. Prospects who previ-ously used an FSA Youth Loan tofinance an agricultural endeavor, suc-cessfully repaid the debt, and are ofthe “age of majority” according tostate law, are eligible for microloans.

The microloan graduates farmers toa new level and further prepares themfor larger FSA operating loans orcommercial loans through the FSAGuaranteed Loan Program.

By expandingaccess to credit,FSA continuesto help growthe industry onwhich ourcountry wasbuilt — agricul-ture. ThroughFSA, more than128,000 loanstotaling $18 bil-lion have beenissued.The number

of loans to beginning farmers andranchers has increased from 11,000 in2008 to 15,000 in 2011. More than 40percent of USDA’s farm loans now goto beginning farmers, while lending tosocially disadvantaged producers hasincreased nearly 50 percent since 2008.

At FSA, we aim for ways to helpfarmers and ranchers achieve theirdreams, to be part of the Americanpopulation that feeds the world whetherthey are large-scale or small-scale opera-tions.

By supporting America’s growers, wehelp all Americans. We provide a secure,low-cost food supply and make a majorcontribution to the U.S. economy. Andwe do these things while nourishingmillions.

Scherrie Giamanco is the state executive directorof Illinois Farm Service Agency.

Following big dreamsbut on a smaller scale

SCHERRIEGIAMANCO

Time now to confrontmisguided extremistsEditor:

I recently attended the annual Mon-santo shareholders’ meeting. Misguid-ed environmentalists got up to speakin favor of mandatory labeling offoods that contain genetically modifiedmaterial and criticized Monsanto forcontributing to the defeat of Proposi-tion 37 last fall in California.

I was upset and got up to speak inopposition to the environmentalists’position. There is no scientific evidence of

harm to humans from geneticallyimproved foods. Quite the contrary,improved drought resistance and dis-ease resistance with greater yields havesubstantially benefited mankind.

Farmers should be free to choosethe seeds and the products that best

meet their needs. No-till and low-tilloperations and good conservationpractices have greatly reduced erosionand improved soil quality.

Proposition 37 was rather narrowlydefeated, 51.5 percent to 48.5 percent.Labeling would be expensive and stig-matize foods that scientific evidenceshows is not harmful. Segregations ofcrops and products is an additionalexpense. All of these costs would makefood more expensive for consumers.

We need to confront these environ-mental extremists and be sure the pub-lic is not fooled. We need to be sureour public officials are not taken in bytheir argument. The environmentalists’ real aim is

first to label and segregate geneticallymodified foods and then to ban themlegislatively. EDWARD RAGSDALE,Alton

Place focus more on prices, not immigrationEditor:

A series of articles in FarmWeekcontinues to push the agenda of com-prehensive amnesty. We had the 1986 amnesty bill, which

was supposed to secure the bordersand establish E-Verify. Of course, thepoliticians had no intention of doingthis and didn’t. Now we have another 11 million to

15 million illegal aliens that Obama andmany business interests want to giveamnesty and a permanent stay in theU.S.The dairy industry not only wants a

guest worker program for foreign agworkers, which we already have in theH2-A visa program, it wants perma-nent status for such workers.All of these may be swell for certain

ag businesses and corporations, but it isnot going to help most citizens, andthat includes the overwhelming numberof farmers in Illinois who do their ownwork. And it certainly is not going to help

their children’s children.This is all about cheap labor for vari-

ous business interests. But Farm Bureau is pushing very,

very hard for comprehensive amnestyagain as it did in 1986. Ever notice that when natural gas

prices go up, the price for anhydrousgoes way up, but when the pricedeclines, you do not see the effect tothe same degree. These are the types of issues that the

American Farm Bureau Federationneeds to focus on for ALL farmers, notthe wants of big agribusiness boys. FRANK GOUDY,Cuba

FarmWeek February 25 2013

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