FarmWeek February 28 2011

Per

iod

ical

s: T

ime

Val

ued

Monday, February 28, 2011 Two sections Volume 39, No. 9

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

THE ILLINOIS FARM BureauMarket Study Tour will visit the Pana-ma Canal and other sites in the regionbeginning next week. .............................4

L I V E S TO C K FA R M E R Sreceive advice on how to avoid theinadvertent hiring of an animalactivist. ............................................3

PLANNING FARM COMMUNITY RESPONSES

Dr. Patrick Webb, far left, director of swine health programs with the National Pork Board, discussesemergency responses for a typical farm community, depicted in the toy model, during an agroterror-ism workshop at the Pike County Farm Bureau building last week. The Federal Bureau of Investigationand the Illinois Department of Agriculture sponsored the workshop for local officials and farmers.(Photo by Ken Kashian)

Now ‘not the time’ to block ethanol — biofuels headBY MARTIN ROSSFarmWeek

Renewable Fuels Association(RFA) President Bob Dinneenacknowledges ethanol’s future ison the table in Congress. Hejust isn’t ready to see it laid onthe chopping block.

Commemorating RFA’s 30thanniversary in Phoenix lastweek, Dinneen noted the “acutestate of turmoil and uncertain-ty” that faced the industry in1981.

Last week, Dinneen indictedU.S. House moves to block useof federally approved E15 (15percent ethanol) blends andcalled on the Senate and WhiteHouse to defeat measuresincluded in the House fiscal2011 continuing resolution(CR).

Rep. Jeff Flake (R-Ariz.) wonapproval for a CR amendmentto bar USDA funding for newretail “blender pumps” thatoffer a choice of ethanol fuels.

And Rep. John Sullivan (R-Okla.) moved a measure toblock U.S. Environmental Pro-tection Agency (EPA) efforts toboost fuel ethanol content.

Dinneen conceded “we needto be flexible in our approach... and recognize the limitationsof government support in anera of unimaginable debt andcompeting priorities.”

He said he is open to discus-sion of options to revise the 45-cent-per-gallon ethanol

blenders tax credit, including aplan to divert a share of federalsupport toward blender pumpsand other biofuels infrastruc-ture.

“What happened with thecontinuing resolution was acouple of oil state members ofCongress decided they weregoing to seize the moment andput a stake in the ground to say,‘We don’t want the ethanolmarket to grow,’” he toldFarmWeek. “All they’re doingis denying choice.

“They were substitutingtheir political science for EPA’sphysical science. The Depart-ment of Energy and EPA havemore than 6.5 million (vehicletest) miles on E15. That’s theequivalent of 12 trips to themoon and back.”

Dinneen sees Flake and Sul-livan’s “opportunity to vent”having little traction with theadministration or Senate lead-ers. Sen. Charles Grassley (R-Iowa) told RFA members, “Weneed certainty for investors andproducers” via solid ethanolpolicy, but he warned ethanolopposition is “growing toofast.”

Grassley said “Big Oil” hasbeen joined in attacks by “gro-cery manufacturers, environ-mental groups, internationalhumanitarian organizations,and ivory tower elites.” He seesethanol as “a scapegoat for the

big food producers, for the solepurpose of raising prices andmaking bigger profits.”

Dinneen believes the medianow realize “they were used bysome special interests” to targetethanol as a factor in food priceincreases. “They’re (media) a lotmore reasonable; they’re a lotless quick to jump on the band-wagon,” he said.

On the heels of RFA’s con-ference, the biofuels groupGrowth Energy (GE) con-demned House actions againstE15 amid “unrest in Libya andother North African and Mid-dle Eastern nations sending oilto a two-year peak of $120 (perbarrel).”

GE CEO Tom Buis warned“now’s not the time for Con-gress to be blocking ethanolfrom the American fuel mar-ket.”

The Flake-Sullivan amend-ments threaten to deepen Amer-ica’s addiction to foreign oil,”said GE co-chairman andretired Gen. Wesley Clark. E15could replace 7 billion gallons ofgasoline per year, according toBuis.

“Today, ethanol is the onlyalternative energy source that’sactually replacing oil,” SenatorGrassley told RFA. “The 13 bil-lion gallons of ethanol pro-duced in the year 2010 willreduce oil demand by about 455million barrels.”

Simon seeks to be a voice ‘for all the state’Rural, economicissues on listBY KAY SHIPMANFarmWeek

Downstate and rural Illinoishave a voice in the lieutenantgovernor’s office, Lt. Gov.Sheila Simon assured FarmBureau leaders last week.

“I want to speak out for allthe state. It is significant tospeak up for parts of the statethat are not heard from,”Simon told Farm Bureau lead-ers at the Illinois Farm BureauGovernmental Affairs Leader-ship Conference, Springfield.

Simon reeled off a to-do listthat touched on several issuesof interest to Farm Bureaumembers. Those range fromequity in quality education torural community issues andfrom river concerns to eco-nomic development.

“To me, the most significantthing in rural economic devel-opment ... is education andmaking sure that we have quali-ty education everywhere in thestate and not just in places withhigh real estate values,” Simontold FarmWeek.

Through her efforts, thelieutenant governor also envi-

sions herself as a link betweenconstituents from differentparts of the state who sharesimilar interests and concerns.

Community colleges are aprime example. The lieutenantgovernor already has met withseveral community collegepresidents and plans to meetwith others. Her goal is to havecommunity college presidentsshare success stories as well asproblems. She said she willshare that information withGov. Pat Quinn and state legis-lators.

Education and communitycolleges are key to growing the

state’s economy, Simon noted.“We know our economy isgoing to need more highlyeducated workers,” Simon said.

Currently, 40 percent of Illi-nois adults age 25 and olderhave some college education.Her goal is to increase that to60 percent.

Illinois has many economicopportunities even withinitself, Simon continued. Sheremembered attending anorganizational meeting for anew farmers’ market in RogersPark. One volunteer neededhelp finding growers.

See Simon, page 3

ILLINOIS FARM BUREAUwill make several environmental-related issues priorit ies in thisspring’s state legislative session. ....2

REGULATORY DUST-UP? — Heading into anew farm bill, Senate Ag Committee Chairman DebbieStabenow (D-Mich.) notes a “more risky” climate forfarmers. She said she doesn’t want to add unnecessaryregulatory risk to an already uncertain future.

Stabenow has assembled a group to work with USDAand the U.S. Environmental Protection Agency (EPA)regarding concerns over pending environmental regula-tions. EPA is eyeing new nutrient loading restrictions forportions of the country as well as potentially broadgreenhouse gas and particulate/”dust” regulations.

“We need to discuss the issue and provide more cer-tainty and clarity to farmers,” Stabenow said. “We needto remind them (regulators) that county roads some-times can be a little dusty, and there’s not much we cando about it.”

The senator sees forthcoming farm legislation as a“jobs bill,” noting that in her home state, about one ofevery four jobs is tied to agriculture. While commodityprices have increased, the cost to plant an acre of cornhas increased the past 30 years from about $80 to morethan $300,” she said.

SIMON’S SILO EXPERIENCE — Illinois farm-ers don’t be concerned. The new lieutenant governorsaid she won’t ask to scale your silos — no matter howspectacular the view.

During last week’s Illinois Farm Bureau’s Governmen-tal Affairs Leadership Conference, Lt. Gov. Sheila Simonshared a story about her first visit to the RandolphCounty farm of her father-in-law, Wilbert Knop. Simonjoked that being “young and in love” she agreed to climbthe silo for the best view of the farm. Her journey upwasn’t difficult, but coming down was another story.

“I’m happy to visit any of your farms, but I won’tclimb any of your silos,” she assured Farm Bureauleaders.

IS YOUR MOM SPECIAL? — Illinois CountryLiving, the electric magazine provided to homes of ruralelectric cooperative members, is seeking candidates forits 2011 Illinois Country Mother of the Year award.

The winner will be a mother who is served by a ruralelectric cooperative and has been active in her commu-nity.

To be entered, the special mom must be described in500 words: What she does and why she deserves to winthe title.

Go to {icl.coop} to fill out a form and write in theessay or mail it to: Mother of the Year, Illinois CountryLiving, P.O. Box 3787, Springfield, Ill., 62708-3787.

Those making nominations must provide theirname, relationship to the nominee, and phone numberwith area code.Deadline to enter is March 11. The win-ning mother will receive a $100 gift certificate and oth-er prizes.

FarmWeek Page 2 Monday, February 28, 2011

(ISSN0197-6680)

Vol. 39 No. 9 February 28, 2011

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

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

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

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

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

© 2011 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

Daniel Grant ([email protected])Editorial Assistant

Linda Goltz ([email protected])Business Production Manager

Bob Standard ([email protected])Advertising Sales Manager

Richard Verdery ([email protected])Classified sales coordinator

Nan Fannin ([email protected])Director of News and Communications

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

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

Quick TakesGOVERNMENT

HIGHEST AWARD RECIPIENT

U.S. Rep. John Shimkus, right, a Collinsville Republican, last weekwas awarded the Golden Plow award, the highest honor the Ameri-can Farm Bureau Federation bestows on a member of Congress. Theaward was presented by Illinois Farm Bureau President Philip Nelsonduring the Governmental Affairs Leadership Conference in Spring-field. Nelson called Shimkus a “passionate advocate” for farmers.“Just two weeks ago, the congressman used my testimony and aphoto he took of last October’s soybean harvest to make the pointthat EPA’s (Environmental Protection Agency) proposed dust regula-tions defy common sense,” said Nelson. IFB nominated Shimkus forthe award because of his work on Farm Bureau issues, including hisopposition to cap-and-trade legislation, support of biofuels, and hisefforts on animal health and food safety. (Photo by Kay Shipman)

BY KAY SHIPMANFarmWeek

Illinois Farm Bureau is addressing severalenvironmental-related issues among its statelegislative priorities in the spring session.

Under SB 1841, sponsored by Sen. LindaHolmes (D-Aurora), the Illinois EnvironmentalProtection Agency would keep confidential thename of an individual being investigated for apotential environmental violation until theinvestigation is finished and enforcement pro-ceedings have started.

IFB Director Chuck Cawley, chairman ofthe IFB Illinois Government Committee,explained IFB wants an investigation to becompleted before possible causes andsources are identified to prevent anindividual from being accused false-ly.

“It goes against the grain ofbeing innocent until provenguilty,” Cawley said. “It wouldbe unfair to all partiesinvolved.”

On an another environ-mental front, IFB wantsto reconnect mineral rightsthat have not been used in20 years with the surfaceland owner. That is thepurpose of SB 1876,sponsored by Sen. A.J. Wilhelmi (D-Joliet).

The legislation addresses the issue of mineralrights that were sold many years earlier but haveremained dormant. The idea is to have dormantrights revert to the surface owner.

IFB would consider any action, such asdevelopment or even filing of a notice of con-tinued ownership, by the mineral rights ownerto mean the rights are being used and those

rights would not revert to the surface owner.Safety concerns are at the heart of two bills

related to the use of slow-moving-vehicle(SMV) emblems. Both HB 1438, sponsored byRep. Chad Hays (R-Danville), and SB 1907,sponsored by Sen. Martin Sandoval (D-Chica-go), propose to increase fines to $75 forimproper use of SMV emblems.

Currently, the fine for misuse of an SMVemblem is $25. By increasing the fine, IFBhopes people would be discouraged from

using SMV emblems to mark their drive-ways or other improper uses, according to

Cawley.“A driver could mistake that (improper

use) for a vehicle with dangerous results,”Cawley said. “It’s simply a matter of

safety.”IFB supports SB 2012, spon-

sored by Sen. Michael Frerichs(D-Champaign), which wouldchange how the Illinois Coun-

cil on Food and Agriculture(C-FAR) is funded.

Cawley, who serves asC-FAR chairman,

explained the bill propos-es to make C-FAR

research grants competi-tive instead of awardingdesignated percentages of

funding to the four state universities with agri-culture programs.

The legislation also would allow C-FAR toaccept contributions instead of the existingrequirement that it must rely solely on statefunds, Cawley added.

The changes “are key components of thereinvention of C-FAR” and were proposed by aC-FAR task force, Cawley said.

IFB focuses on statelegislative priorities

March 4-6Illinois Horse Fair, IllinoisState Fairgrounds,Springfield. For information,go online to{www.HorsemensCouncil.org}

March 5Sustainable farmer network, 6to 9 p.m., 220 New AmericanBistro, Bloomington.

March 9Illinois Agricultural LegislativeDay, Springfield.

March 9-10Rural Community EconomicDevelopment Conference,Holiday City Centre, Peoria.For information, go online to{www.iira.org}.

March 10Livestock manager certifica-tion workshop, 8:15 a.m.,Sangamon-Menard Extensionoffice, Illinois StateFairgrounds.

March 11-12ExplorACES, University ofIllinois College of Agricultural,Consumer, and EnvironmentalSciences, Urbana. Go online to{http://aces.illinois.edu/ExplorACES}.

March 12Tri-state forest stewardshipconference, Sinsinawa MountCenter, Sinsinawa, Wis. Toregister, go online to{www.forestry.iastate.edu}.

DATEBOOK

GOVERNMENT

Page 3 Monday, February 28, 2011 FarmWeek

Continued from page 1“It was so funny to be in the middle of this urban area and to

hear people say they want more access to fresh, local produce,”Simon said, laughing that she was a resource because she knowsfarmers. Simon said she hopes to bring about more linkagebetween farmer resources in Illinois and consumers.

Simon’s also would like to connect local elected officialsacross the state.

The lieutenant governor mentioned she had IFB’s Adopt-a-Legislator program in mind when she thought of a local officialsmatching program.

Her goal is to help local officials connect with their counter-parts in different areas of Illinois. Simon said she hopes the pro-gram will help officials make personal connections with col-leagues in different areas.

“I’m from Southern Illinois, and I want to be a voice for all ofthe state,” she said.

Simon

Lt. Gov. Sheila Simon discusses agricultural issues with Illinois Farm Bu-reau President Philip Nelson, right, following her speech to IFB’s Gov-ernmental Affairs Leadership Conference in Springfield. Mark Geb-hards, IFB executive director of governmental affairs and commodities,looks on. Simon told Farm Bureau leaders she will work on rural anddownstate issues. (Photo by Kay Shipman)

Livestock farmers advisedto use care when hiring

TREASURER TALK

Illinois state Treasurer Dan Rutherford, right, shares a laugh with Livingston County Farm BureauPresident Dennis Haab, left, of Forrest and the county Farm Bureau’s treasurer-secretary, DonImmke of Pontiac, during Illinois Farm Bureau’s statewide legislator reception in Springfield lastweek. Rutherford took the opportunity to stay and chat with former constituents and friends.(Photo by Kay Shipman)

Agriculture facing flood of environmental issues

The nation’s agriculturalindustry faces environmentalchallenges, especially as theU.S. Environmental Protec-tion Agency (EPA) pressuresstates to take action; however,agriculture has progressed ona couple of fronts, accordingto two national experts whospoke at the Illinois FarmBureau Governmental AffairsLeadership Conference lastweek.

Susan Parker-Bodine, anattorney from Washington,D.C., shared a list of environ-mental lawsuits with thepotential to negatively impactIllinois farmers.

She repeatedly expressedfrustration at EPA’s relianceon computer models to setregulatory targets instead ofusing accurate data.

“It’s a train wreck, and wedon’t see the train wreckbeing stopped,” Parker-Bod-ine said of EPA’s efforts torequire permits for pesticideapplications on or near“waters of the U.S.”

Harold Coble with USDA’sOffice of Pest Management

reported two recent successeson environmental issues.Coble and his colleagues rep-resent USDA and agriculturewhile working on pesticideregulations with EPA.

Coble expressed optimismthat EPA will alter proposedpesticide label wording aboutspray drift. USDA had rec-ommended EPA change thewording to “don’t allow spraydrift that causes harm” fromwording that was more vague.

“I talked last week withEPA, and we seem to havemade progress on the lan-guage,” Coble reported.

Coble also was optimisticthe National Marine FisheriesService will rely on USDAinformation on documentedpesticide uses to develop pes-ticide-use restrictions.

Previously, the agency hadbased its restrictions on pos-sible maximum pesticiderates and applications, Cobleexplained.

“Folks, that’s a win,”Coble said of the agency’schange in mindset. — KayShipman

BY KAY SHIPMANFarmWeek

Livestock farmers should apply some of thehiring practices used by other employers toreduce the possibility of employing an animalactivist, an animal agriculture expert told FarmBureau leaders last week.

“It is important for you, as farmers, tounderstand that agriculture is part of the coun-try’s critical infrastructure,” said Kay Johnson-Smith, vice president of the Animal AgricultureAlliance, based in Arlington, Va.

She spoke at the Illinois Farm Bureau Gov-ernmental Affairs Leadership Conference inSpringfield.

Many ofthe hiringpractices andquestions onJohnson-Smith’s listto be askedare familiarto mostemployers.

Theseincluderequiring andchecking prospective employees’ references andasking employees to sign statements that theirpersonal information is accurate.

In some cases in which a farmer inadvertent-ly hired an animal activist, following basic hiringprocedures might have stopped the activist,according to Johnson-Smith.

She also recommended farmers implementprocedures specifically geared for livestockoperations. Each livestock farm should develop

and put into writing animal care and handlingguidelines — and each employee should receivetraining on those guidelines and sign a docu-ment stating he or she was trained and under-stands them.

“This (guideline) is proof that you’re doingthe right thing and provides proof that youhave developed policies for employees to fol-low,” she said.

Johnson-Smith also recommended farmersdevelop a policy about employees’ having andusing any type of device that can record video,photos, or sound.

She encouraged farmers to let employeesknow they canreport situa-tions “thatdon’t seemright” withoutrepercussionand to warnthem aboutindividualswho mightoffer bribes toget access tobuildings oranimals.

If a farmer receives a threatening letter froman activist group or becomes the focus of anactivist campaign, he or she should keep locallaw enforcement informed and work with thecounty and Illinois Farm Bureau, Johnson-Smith advised.

Farmers interested in additional details maycontact Jim Fraley, IFB livestock program direc-tor, at 309-557-3109 or Johnson-Smith at 703-562-5160.

‘ I t is impor tant for you, asfarmers, to understand thatagr i cu l tu re i s pa r t o f t hecountry’s critical infrastruc-ture.’

— Kay Johnson-SmithAnimal Agriculture

Alliance vice president

PRODUCTION


USDA: Stocks will remain tight despite jump in acresBY DANIEL GRANTFarmWeek

U.S. farmers this plantingseason are expected to respondin a big way to higher cropprices.

USDA last week projectedthe total area for the eightmajor row crops (barley, corn,cotton, oats, rice, sorghum,soybeans, and wheat) willincrease by 9.8 million acres toa total of nearly 255 millionacres.

That would be the mosttotal crop acres planted in theU.S. since 1998.

“Higher market prices willencourage greater plantingsthis year and increased cropproduction this fall,” JoeGlauber, USDA chief econo-

but the situation will remainvery tight,” Glauber said.

The tight stocks combinedwith strong demand areexpected to keep the pressureon crop markets. Crop pricesthis year were projected toaverage $5.60 per bushel forcorn, $13 for beans, and $7.50for wheat.

Elsewhere, livestock priceswere projected to remain strongthis year. USDA forecast steerprices this year will average a

record $102 to $109 per hun-dredweight while hog prices areexpected to rise from an aver-age of $55 per hundredweightin 2010 to an average range thisyear of $58 to $61 per hun-dredweight.

The all-milk price this yearwas projected to average $17.70to $18.40 per hundredweight,up from $16.29 last year and$12.93 in 2009.

High crop prices are expect-ed to temper expansion in thelivestock industry, though, asfeed costs account for aboutthree-quarters of expenses.

Overall, cash productionexpenses for farmers this yearwere projected to reach arecord-high $274 billion.

mist, said lastweek duringthe USDA AgOutlookForum inArlington, Va.

USDA pro-jected farmersthis spring willincrease plant -ings from last

year by 3.8 million acres forcorn, 600,000 acres for soy-beans, and 2 million acres forcotton. U.S. farmers last fallincreased winter wheat seedingsby 3.7 million acres to 41 mil-lion acres.

“The net increase of 9.8 mil-lion acres would be the largestyear-to-year change since 1996when 15 million additional

acres were planted to the eightcrops,” Glauber said.

The corn acreage estimatewould be the highest level inthe U.S. since farmers planted93.5 million acres in 2007.

However, even with anational trend-line yield ofabout 162 bushels per acre thisyear, corn stocks wouldincrease by just 190 millionbushels to a total of 865 millionbushels.

The situation is similar forsoybeans as USDA projectedending stocks this year willincrease by a modest 20 millionbushels to a total of 160 millionbushels.

“In terms of stock levels,there will be some rebuilding,

Joe Glauber

FarmWeekNow.comLis ten to remarks by USDAchief economist Joe Glauberat FarmWeekNow.com.

Weather will be watchedclosely this growing season

Weather always is the key determinant of crop yields, but itcould have an even greater impact on the markets in comingmonths than at any other time in recent history.

Tight crop supplies and strong demand essentially haveturned the possibility of above-average corn yields from a goalfor U.S. farmers into a necessity this growing season.

“We need early corn planting and we need a lot of it,” SteveStrong, senior export corn trader with Bunge North America,said last week at the Grain and Feed Association of Illinois(GFAI) annual convention and trade show in Springfield.

Corn demand so far has not slowed much, despite $7 futures,as historically high livestock and oil prices have kept many live-stock producers and ethanol manufacturers in the black.

Meanwhile, the low value of the U.S. dollar, crop shortagesin other regions of the world caused by drought and floods, anda stronger economy have made U.S. ag products hot commodi-ties around the world.

Strong reported U.S. corn demand is on pace to total 13.5billion bushels. U.S. corn production, however, last year totaled12.4 billion bushels.

“We are consuming corn at a pace that is not sustainable tomake it to the new crop,” Strong said. “The function of themarket is to find a way to ration demand and increase acres. It’sa very bullish picture (for corn prices).”

Strong estimated it may take as many as 95 million acres ofcorn this year to meet demand and rebuild stocks. About 88million acres were planted to corn in 2010.

The seasonal forecast for March through May is neutral interms of precipitation and temperatures. However, the overallwet pattern could continue into the planting season.

“We have a snowpack sitting up north (that totals as much as3-5 inches of water),” Jim Angel, state climatologist with theIllinois State Water Survey, said at the GFAI convention. “Assoon as it melts, it will come rushing down the Mississippi andcould cause (flood) problems.”

On the flipside, forecast models predict La Nina (coolerwaters in the Pacific) will weaken and possibly be gone some-time between May and June. La Nina springs tend to be dry,Angel reported.

“Soil moisture is in great shape,” Angel said. “The onlydrought conditions in the U.S. are in the south and southeast. Itlooks like that will continue.”

So what type of impact could La Nina have on the weatherand crop yields this season?

Elwynn Taylor, Iowa State University Extension climatolo-gist, predicted on Twitter that if La Nina remains active intoJune, the national corn yield could average just 147 bushels peracre, which could push the average corn price to $7.42 perbushel.

However, if La Nina conditions disappear by June 1, Taylorprojected the national corn yield could average a much morerobust 162 bushels and pull corn prices down to an average of$5.70 per bushel. — Daniel Grant

Panama ‘bottleneck’ northboundwithout infrastructure investment?

ADOPTED LEGISLATOR CHAT

BY MARTIN ROSSFarmWeek

It was constructed nearly acentury ago — a marvel ofcommercial infrastructure builtto accommodate the ocean-going behemoths of the future.

When the size and scope ofmarine transportation finallysurpassed that vision, thenation’s citizens voted to investbillions in bringing it up to date.

Indeed, Mike Steenhoekargues, the consistently “well-maintained” Panama Canaloffers a model for U.S. policy-makers who balk at investing inMississippi River locks anddomestic port infrastructure thathe deems crucial to Midwestproducers hoping to fully tapthe Canal’s potential.

Last week, Steenhoek, direc-tor of the national Soy Trans-portation Coalition (STC),briefed participants of IllinoisFarm Bureau’s March Panama-Colombia Market Study Tour.

STC members met in Pana-ma in December; Illinois Soy-bean Association representa-tives will join IFB members ona week’s market study tourMarch 8 to 15.

Steenhoek notes Panama’splan by 2014 to complete majorexpansion of the formerly U.S.-owned Canal — an increasinglycrucial conduit for containerizedshipments between the Gulfand key Asian markets. An aver-age 40 vessels move dailythrough the 48-mile canal,which was completed in 1914.

Forty-two percent of U.S.grain exports today movesthrough the Canal, including 540million bushels of soybeans in2010 alone. Steenhoek estimates61 percent of soy exports movethrough the Gulf.

The size of oceangoing car-go vessels has increased over thelast century — a modern “Pana-max” vessel can carry 2 million

bushels of beans. Panamaniansthus voted in 2007 to expandcurrently limiting lock chambersand channels, at a projected $5.2billion cost.

Expanded Canal capacity isexpected to generate a “big surge”in freight movements, accordingto Steenhoek. Unless Congressand the administration begin toprioritize domestic infrastructureimprovements, he sees a currentPanamanian “bottleneck” movingupstream to the U.S.

“We certainly need to dosome things to augment our railinfrastructure, which will feed(Gulf) ports,” Steenhoek toldFarmWeek. “This is going to beanother reason to advocate forlock-and-dam modernizationand repair.

“Illinois has an opportunityto do some container-on-barge

loading on the Illinois River andsend freight all the way down tothe Gulf.

“And it’s a call, in my opinion,for greater semi (truck) weightlimits. You have to look at thewhole system as a logistics chain,and there are weak linksthroughout it. Whether you’retalking about trucking, barge, orrail, each one of those needs tobe fortified.”

The Port of New Orleanspredicts a 12-13 percent increasein overall cargo shipments in thenear future.

Evergreen Shipping, a NewJersey company with offices inOakbrook, Panama, and Colom-bia, is a major host for IFB’sstudy tour. IFB Senior Com-modities Director Tamara Nelsennoted “agriculture’s become veryimportant to them.”

“They know that agricul-ture’s voice in (U.S.) policy andinvestments is important totheir long-term shipping abili-ty,” Nelsen related.

Rep. Fred Crespo (D-Hoffman Estates), second from right, chatswith his “adopted” county Farm Bureau leaders, left to right, Han-cock County Farm Bureau Board members Carol Jerred and SamZumwalt and Illinois Farm Bureau Director Terry Pope during theIFB legislator reception last week. The county Farm Bureau andCrespo are matched through IFB’s Adopt-a-Legislator program.(Photo by Kay Shipman)

ENERGY


Clinton: No simple answers to food-vs.-fuel debateBY DANIEL GRANTFarmWeek

Former U.S. President BillClinton learned one of hisfirst lessons about agriculturewhile growing up on a farm inArkansas.

With an outhouse as theonly facility on the farm, hejoked last week at the USDAAg Outlook Forum in Arling-ton, Va., that he quickly learnedwhich snakes were poisonousand which were non-poisonousso he could decide when it wassafe to use the facility.

But now, as the world haschanged greatly since thoseseemingly much simpler timesdecades ago, farmers and agri-culture face much more diffi-cult decisions, according toClinton.

there are no simple answers.”Growth Energy, a biofuels

advocacy group, called Clinton’sadmonition “well-intentioned,”but pointed the former presi-dent toward recent studiesincluding “Land Availability forBiofuel Production,” in thejournal Environmental Scienceand Technology in January.

The University of Illi-nois/University of CentralFlorida study indicates biofuelcrops grown on already-avail-able farmland could produceup to half of the world’s cur-rent fuel consumption withoutnegatively affecting food crops.

American agriculture won’tbe able to do it all, though,according to Clinton. That’swhy he said it is imperative forthe U.S. to help farmers in oth-

er countries become more pro-ductive through the use of bet-ter farming techniques,improved genetics, and the for-mation of cooperatives.

Clinton insisted that improv-ing food production around theworld won’t result in competi-tion for American agriculture.He noted more than 1 billionpeople currently suffer fromchronic hunger, and the worldpopulation is expanding thefastest in countries with someof the highest poverty rates. Inthe U.S., the percentage of peo-ple on food stamps is near a 50-year high, according to Clinton.

“We have to make sure peo-ple can feed themselves,” hesaid. “There is no conflict (ofinterest) in our effort to buildsustainable agriculture.”

“We’re liv-ing in a highlycomplicatedenvironment,”Clinton toldan overflowcrowd ofmore than1,000 atten-dees at theOutlook

Forum. “What will agriculturelook like in the next 20 years aswe deal with all the competingpressures?”

Specifically, he said, agricul-ture must feed a rapidly risingpopulation — the world popu-lation is projected to growfrom 6.5 billion people to 9 bil-lion people by 2050 — at atime when it also is beingcounted on as a key source of

energy, mostly in the form ofbiofuels.

Clinton, who 10 years agofounded the William J. ClintonFoundation with goals thatinclude alleviating poverty,improving global health,strengthening economies, andprotecting the environment,noted agriculture must walk afine line to balance future food,feed, and energy demands.

“Half our trade deficit isimported energy,” Clinton said.“We have to become moreenergy independent.

“But we don’t want to do itat the expense of food riots,”he continued. “We must maxi-mize the availability of goodfood at affordable prices andmaximize our move to energyindependence. For farmers,

Vilsack: USDA will promote exports, biofuels despite rising food pricesAg Secretary Tom Vilsack

last week acknowledged U.S.crop stocks likely will beextremely tight this year.

The stocks-to-use ratio forsoybeans is at an all-time lowwhile the stocks-to-use ratiofor corn is at its lowest pointsince 1995/96.

However, Vilsack wasadamant last week during hiskeynote address at the 87thannual USDA Ag OutlookForum in Arlington, Va., thathis agency’s push to promoteag exports and biofuels willnot waiver this year despite thepossibility of tight crops sup-plies contributing to higherfood prices.

“Some suggest we should

9.8 million acres, including a 3.8-million-acre bump in corn acres.

The Ag Department also willpush to increase educationabout the benefits of biotech-nology around the world toincrease crop production, and itwill work with other countries tohelp farmers learn new methodsto increase crop production, theag secretary said.

“We have to embrace theopportunities science presentsto increase production world-wide,” Vilsack said.

The ag secretary alsobelieves support of biofuelsmust continue despite recentrekindling of the food-vs.-fueldebate.

“There’s no reason to take ourfoot off the gas,” he said. “Biofu-els are an important componentof our energy security.”

Vilsack noted the U.S. hascut its oil imports by 450 mil-lion barrels each year due to theuse of biofuels, but the U.S. stillimports more than 60 percentof its oil. — Daniel Grant

take our footoff the gas onag exports torebuild our(grain) sup-ply,” Vilsacksaid. “We’renot going todo that.”

Instead, theag secretary

believes American farmers willrespond to strong domesticand international demand byincreasing crop production.

USDA at the meeting pre-dicted the ethanol industry thisyear will increase its use ofcorn by 50 million bushelswhile soybean exports will bethe second-highest on record

at 1.575 billion bushels despiteprices that increased in recentmonths by 42 percent for cornand 41 percent for beans.

The Ag Department last weekalso increased its estimate fordomestic food price hikes thisyear from 2 to 3 percent to a cur-rent forecast of 3 to 4 percent.

“High prices are a catalystfor the private sector toincrease food production,”Vilsack said. “Despite thechallenges and difficulties, I’mconfident in our ability to con-front these challenges.”

USDA also projected U.S.farmers this year will respond tostrong demand, tight stocks, andhigh prices by increasing plantingsof the eight major row crops by


Corn growers are looking at a promisingstart to the planting season and thus have soundprospects for adequately meeting future foodand fuel needs (see accompanying story).

So says National Corn Growers Association(NCGA) CEO Rick Tolman, who assured glob-al ethanol interests that researchers and growersare continuing to “expand the pie” — i.e., totalgrain supplies for livestock, exports, and biofu-els markets.

Tolman acknowledged that often, “the dif-ference between having too much and too littlein the corn market is narrow.” But for 2011, hesuggested, “the odds favor us being at or above(historical yield) trend” — a recent informalsurvey of NCGA board members projected a165-bushel-per-acre or higher national averageyield (last year’s average was 153).

While a “hiccup or disruption” could spurcorn prices given current supplies, Tolman seesseasonal conditions and market incentives“telling farmers to plant more corn.”

“We had a really good fall: The weather wasdry and the winter weather held off,” Tolman

told FarmWeek. “Farmers were able to getcrops out of the field, to do their fall tillage,apply their fertilizer, buy inputs. It was muchdifferent than 2009 when they were still har-vesting even into 2010.

“They’re feeling like they’re well preparedthis spring to really get in and plant and getthings done.”

He sees improvements in crop genetics con-tinuing to drive yields and strong farm incomeand current federal tax incentives driving equip-ment purchases that can boost productivity.

An NCGA-authorized study points to a pos-sible 189-bushel corn average by 2020-21, asannual ethanol production approaches a pro-jected 20 billion gallons. Even under that biofu-els production scenario, “we see stocks continueto grow,” Tolman said.

Tolman offered stern words for a massmedia he characterized as “misinformed ordeceitful or lazy” in its failure to publicize thegrowing corn feed replacement value ofethanol-derived distillers dried grains.

“You know the story; it’s not being told,” hestressed at last week’s National Ethanol Confer-ence.

Promising start to 2011 seasonshould help meet corn needs

Tom Vilsack

Bill Clinton

ETHANOL


Edwardsville center works to boost corn’s stockBY MARTIN ROSSFarmWeek

While John Caupert notes“corn is in our name,” the direc-tor of Illinois’ National Corn-to-Ethanol Research Center(NCERC) doesn’t quibble aboutwhere next-generation biofuelstechnology comes from or, forthat matter, where it goes.

The Edwardsville center ischartered to study and helpdevelop new corn ethanol tech-nologies. While cellulosic

beyond 40 to 50 percent.” “I’m completing a full cal-

endar year cycle where 100 per-cent of the work we’ve done inthe biofuels pilot plant isadvanced biofuels work,” hetold FarmWeek.

“What’s exciting for some isit’s advanced biofuels actuallybeing produced from corn. Amajor area of study inadvanced biofuels is energyefficiency, which leads to alower carbon footprint.”

At the same time, Caupert is“excited” about Syngenta’s newamylase corn, which containsan enzyme necessary to con-vert its own starch into fer-mentable sugars, largelybecause of the corn trait’spotential incorporation intobiomass energy crops (seeaccompanying stories).

Beyond improving ethanolresource use, NCERCembraces “the biorefinery con-cept” — wringing as many newproducts as possible from asingle feedstock. NCERC’scommercial “scale-up” worksince May has centered oncorn-based “butanol,” both foruse as a fuel that somedaycould be blended with gasolinein a single pipeline and as aindustrial chemical feedstock.

That work has been poweredby Tetra Vitae, an Illinois-basedcompany that uses technologydeveloped by University of Illi-nois scientist Hans Blaschek.NCERC’s pilot plant has pro-duced some of the highest vol-umes of the new fuel yet.

“Tetra Vitae has gone public,and the world’s talking about it,”Caupert added.

ethanol and other “future” fuelsmay be causing much of thebuzz in Washington today, Cau-pert sees NCERC’s work offer-ing a potential new lease to theoriginal ethanol feedstock.

Under the federal renewablefuels standard (RFS2), cornethanol caps out at a mere 15-billion out of 36 billion gallonsof required U.S. biofuels use by2022. But scientists are seeingpotential for starch-basedethanol to make inroads into the

growth category of “advancedbiofuels” which offer quantumreductions in overall carbonemissions vs. gasoline.

Caupert feels “corn ethanolgets the short end of the stick”in terms of U.S. EnvironmentalProtection Agency calculations.The 15 billion-gallon RFS2 limitis based on its’ purported 20percent carbon savings overgasoline, but Caupert notes cen-ter clients over the past fewyears have been “pushing

Illinois-based researcher may help resolve dispute

A Chinese-born scientist with Edwardsville’s National Corn-to-Ethanol Research Center (NCERC) could play a key role inaddressing Chinese concerns about U.S. distillers dried grain(DDG) exports.

China’s Ministry of Commerce recently launched an investiga-tion alleging U.S. companies “dumped” the ethanol co-product atsub-par prices into the Chinese market, primarily from July 2009and June 2010.

China is the No. 1 buyer of U.S. DDGs. China’s domestic indus-try annually produces roughly 3.5 million tons of DDGs.

As an anti-dumping case, the dispute is between private U.S. andChinese interests, rather than government agencies. The Chinesegovernment was petitioned to launch the probe and will seek datafrom U.S. producer-exporters as U.S. officials monitor Chinesecompliance with international rules.

NCERC, based at Southern Illinois University-Edwardsville,conducts extensive DDG studies. Center assistant research directorYan Zhang, a China native who NCERC Director John Caupertsaid has compiled “an enviable research portfolio” on DDGs, hasbeen tapped to join discussions regarding Chinese allegations.

“(Zhang) is incredibly respected in mainland China. I see acouple of trade missions probably for her this year to assist theU.S. Grains Council and other groups in their efforts to overcomethis false accusation of dumping,” Caupert told FarmWeek..“She’s just such a well-respected scientist around the world.”

Geoff Cooper, vice president of research and analysis with thenational Renewable Fuels Association, reported the Chinese inves-tigation will follow dual tracks. The first focuses on whether U.S.firms sold DDGs at prices below the cost of production or domes-tic Chinese prices.

Three “mandatory respondents” — companies that exporteddistillers grains during the alleged “dumping” period — tenta-tively have been called to submit all production and U.S. andinternational sales data to the Chinese government. That putsIowa’s Big River Resources (which owns a Galva ethanol facility)and Golden Grain Energy and United Wisconsin Grain Produc-ers “in the hot seat,” Cooper said.

At the same time, Chinese officials will attempt to determine“injury” — whether U.S. DDG imports significantly harmed China’sethanol/DDGs industry. That phase of the investigation will tap farbroader U.S. industry “effort and response,” Cooper told FarmWeek.

He noted speculation that China’s government was motivated topursue an investigation in part as retaliation for U.S. complaintsabout Chinese wind and solar energy subsidies.

“There is no dumping occurring in that (DDG) market,” Coop-er argued. “The price of distillers grains going into China is highernow than the prices in their domestic market.

“If China conducts a fair, even-handed investigation, it’ll findthat there is no dumping, there is no injury resulting from theincreased importation of U.S. distillers grains.

“It boils down to this: Are they interested in looking at this fairlyand objectively, or is this entirely motivated by politics? Is this retri-bution for other trade tensions?” — Martin Ross

Cellulosic ethanol becoming a reality?U.S. Energy Secretary

Steven Chu argues “a strongdomestic biofuels industry isgood for our economy, goodfor our security, and good forour environment.”

Corn ethanol has provided “agood start” in strengtheninggreen energy security “and gener-ating wealth for farmers,” Chutold ethanol producers last weekin Phoenix. But he stressed feder-al efforts to promote “advancedbiofuels technologies,” includingcellulosic ethanol, to “greatlyexpand the economic opportuni-ties in rural America.”

Chu noted research withUSDA in particular to develop“non-food feedstocks” such asswitchgrass, and ongoing workto improve biofuels “energydensity” and efficiency.

Meanwhile, global technolo-gy providers outlined how theprivate sector is rapidly achiev-ing Chu’s reality.

Cynthia Bryant, director ofglobal biomass business withbiofuels technology providerNovozymes, suggested cellu-losic ethanol could be cost-

competitive with its corn-basedcounterpart “in the very nearfuture.” Key are emerging tech-nologies that break down stub-born biomass fiber content andunlock complex sugars to gen-erate more ethanol per ton.

Last year, Novozymesunveiled CTEC2, a technologythat greatly reduces “dosing” —the level of costly chemicalenzymes biofuels processorsmust use to break down biomassmaterial. Last week, Bryant tout-ed “fast fermentation” — a tech-nique that enables plants to tapharder-to-get “C5” sugars.

C5 sugars constitute up to40 percent of biomass, butbecause they have few com-mercial uses beyond fuel,they’re often left on the tableor extracted with a roughly 50-cent-per-gallon dose of high-powered yeast. “Your econom-ics simply cannot supportthat,” Bryant told processors.

Fast fermentation wouldallow plants to recycle yeast. Incommercial-scale trials,Novozymes found the technol-ogy can reduce the net “dose”

by as much as 50 percent. Thecatch: Fast fermentationrequires significant startup costs.

Novozymes also is develop-ing low pitch fed batch tech-nology, which extends fermen-tation time but with less yeast.The key lies in finding whatBryant termed the “sweetspot” — the right blend oftechnologies for each plant.

Rival technology providerGenencor, meanwhile, has highhopes for accelerase duet,which is designed to work with300 different biomass feed-stock and processing combina-tions. Genencor’s DeborahDodge reported the technologyyields more sugar at a threefoldreduction in enzyme dosage,and is effective with wood pulp,sugar cane, and corn “wastes.”

A DuPont-Genencor jointventure plans eventually toscale a 250,000-gallon Ten-nessee cellulosic demonstrationplant up to 50 million gallonsof annual production. Genen-cor also has joined Danish firmInbicon in a 1.4-million-gallonplant that helps supply retailstations across Denmark.

Dyadic International CEOMark Emalfarb cited majorbiorefinery innovation innorthern Europe, noting hisfirm’s work with European“gene jockeys” to developDyadic’s C1 technology from afungus found decades ago inRussian soils. Variations on C1have yielded a series ofdurable, feedstock-diverseenzymes that withstand tem-perature and pH extremes.

The next step is fostering“onsite” enzyme production atethanol plants, according toDodge, offering them a “flexi-ble” supply of feedstock-friendly enzymes and “just-in-time” production to meet mar-ket needs. Working withethanol giants including Aben-goa and Iowa’s POET, Emal-farb sees plants realizing a 50percent cost savings by pro-ducing enzymes onsite.

The CEO envisions “versatilegenetic tools” opening not onlynew fiber and sugar avenues butalso profitable new productlines. “You can make all kinds ofthings in addition to ethanol,”Emalfarb said. — Martin Ross

GMO switchgrass biomass boon?The land reportedly is there; the will in Washington appears

strong. And now, new GMO switchgrass could further set thestage for more feasible next-generation biofuels.

By manipulating lignin, generally the toughest plant fiber tobreak down and process into fuel, scientists have been able toproduce a switchgrass variety that yields 38 percent more biofuelwith lower pretreatment costs.

The modified switchgrass requires four to five times less cellu-lase, an enzyme used to break down fiber, according to a reportin the Proceedings of the National Academy of Sciences. Thatwould improve production cost margins and thus the competitiveprice of biomass ethanol.

“These transgenic switchgrass lines and the approach arevaluable for developing improved cultivars of biofuel crops,” saidreport author Chunxiang Fu, a researcher with the Oklahoma-based Samuel Roberts Noble Foundation.

With miscanthus, forest products, and crop residues, switch-grass is seen as crucial in achieving the Department of Energy’s“billion-ton” target for U.S. energy biomass production. Becauseof its perennial potential, switchgrass also could provide key car-bon sequestration benefits.

Ernie Shea with the renewable energy group 25X’25, argued,“We have sufficient land capacity and underutilized land, coupledwith improvements in productivity, to provide more than enoughbiomass feedstock to satisfy food, feed, fiber, and energy needs.”At issue are “policy mechanisms” that encourage or inhibit devel-opment, Shea told FarmWeek.

He applauded the U.S. Environmental Protection Agency’s(EPA) January decision to delay biomass industry greenhousegas permit requirements for three years — an indication theagency is “relying much more on sound science.”

““But there’s still a lot of work to be done to get consensuswithin the scientific community around how you properly calcu-late those impacts,” Shea noted. .”We’re spending a lot of timetrying to help EPA sort that out.” — Martin Ross

BUSINESS CLIMATE


GFAI president focuses on industry expansion issuesBY DANIEL GRANTFarmWeek

Last year was a busy onefor the grain storage/elevatorindustry as many commercialand farm operations addeddrying capacity, storage capac-ity, or both.

Off-farm, commercial storagecapacity in the U.S. on Dec. 1,2010, totaled 9.74 billion bushels,up 3 percent from the same timein 2009, according to USDA.

In Illinois, commercial grainstorage capacity increased lastyear by about 40 million

gets larger, we have to continueto be a frontrunner in the safetyand health of our employees,”Koltveit told GFAI membersduring his first president’saddress. “You’ll see a lot ofemphasis this year on safety.”

GFAI recently formed analliance with the OccupationalHealth and Safety Administra-tion to help improve safety atgrain facilities around the state.GFAI also joined the GrainHandling Safety Association.

Another challenge for thegrain and feed industry as it

grows is infrastructure limita-tions and access to utilities,according to Koltveit.

“As the industry grows anddemand increases, we’re findingnatural gas and utilities are notreadily available” at some loca-tions in the state, he said. “If wedon’t get our utilities upgraded,it will hurt our business.”

Some of Koltveit’s other pri-orities this year include expand-ing membership and services inthe organization and buildingand maintaining relationshipswith lawmakers and regulators.

bushels. The growth

has beenspurred bystrong demandfor crops anda general trendof increasedproduction.

Last year,U.S. corn pro-

duction (12.4 billion bushels) wasthe third-largest on record whilesoybean production (3.33 billionbushels) was down just 1 percentfrom the record set in 2009.

The rise in grain storageneeds has been good for theelevator industry, but it also hasresulted in some growing pains.

David Koltveit of Consoli-dated Grain and Barge Co. inBluffs will focus on industrygrowth issues this year duringhis term as the president ofthe Grain and Feed Associa-tion of Illinois (GFAI).

Koltveit took the reins ofGFAI last week at the organiza-tion’s 118th annual conventionand trade show in Springfield.

“As the industry grows and

David Koltveit

FSA: Payments boost rural Illinois economiesThe Illinois Farm Service

Agency (FSA) provided about$649.7 million to Illinoisfarmers during fiscal year2010, Oct. 1, 2009, throughSept. 30, 2010.

Scherrie Giamanco, stateexecutive director for IllinoisFSA, noted this money providesfarmers with commodity pricesupport and assistance to recov-er from disasters and implementconservation practices.

Payments made throughFSA’s farm programs provide afinancial boost to rural com-munities, she said. The eco-nomic impact of farm pro-grams reaches local businessesthrough sales of equipment,seed, fertilizer, and fuel, Gia-manco said.

Some economists estimatethat once a federal farm programpayment is made to a producer,

$45,426 for the LivestockIndemnity Program (LIP);$1,423,594 for the Milk IncomeLoss Contract (MILC) programand $4,008,450.85 for the DairyEconomic Loss Assistance Pay-ment (DELAP) program.

In addition to direct pay-ments, Illinois FSA loaned$173,625,977 through com-modity loans and loan deficien-cy payments to provide produc-ers interim financing at harvestto meet cash flow needs.

The Farm Storage FacilityLoan program provided

$31,795,790 in low-interestfinancing for farmers to buildor upgrade farm storage.

FSA’s farm loan programsprovide direct and guaranteedloans to purchase real estate orto provide funding for operat-ing expenses.

In FY2010, Illinois FSAmade 269 operating loans and267 ownership loans for a totalof $57,610,000 in direct loans.Additionally, FSA guaranteed265 operating loans and 242ownership loans for a total of$147,421,000.

those dollars change hands local-ly at least seven times.

The following federal farmpayments, by program, wereissued in Illinois duringFY2010:

• $394,178,848 through thedirect and counter-cyclical pay-ment (DCP) program, whichprovides annual fixed directpayments to eligible farmeraccording to historically basedacreage and yields.

• $102,505,213 was disbursedin Illinois through the AverageCrop Revenue Election (ACRE)program. ACRE provides farm-ers with revenue-based pay-ments as an alternative toreceiving price-based counter-cyclical payments.

• $25,400,643 was receivedby qualifying Illinois farmersthrough the Supplemental Rev-enue Assistance (SURE) pro-

gram, which provides crop dis-aster assistance to eligible farm-ers on farms that have incurredcrop production or crop qualitylosses due to natural disasters.

• $117,078,000 in annualrental payments was received byIllinois farmers who have Con-servation Reserve Program(CRP) contracts. CRP is a vol-untary land retirement programavailable to farmers to helpsafeguard environmentally sen-sitive land.

Other notable Illinois pro-grams for FY2010 include:

. . . .

com

A multi-state farm/agri-busi-ness coalition recently an-nounced a promotional partner-ship with NASCAR NationwideSeries driver Kenny Wallace.

Wallace of St. Louis will serveas spokesman for the coalition,Family Farmers, and renewablefuels for the 2011 racing season.

The agreement makes Fami-ly Farmers the primary sponsorof RAB Racing’s No. 09 Toy-ota Camry, driven by Wallace,at five races this season. Thefirst was Saturday at PhoenixInternational Raceway.

Participants in the FamilyFarmers coalition include theIllinois Corn Marketing Board,Illinois Soybean Association,Missouri Corn MerchandisingBoard, and Marquis Energy.

NASCAR this year is usinga blend of 15 percent ethanolas its official fuel.

NASCAR driver coalition spokesman


The seed industry and theU.S. Environmental ProtectionAgency (EPA) are redoublingefforts this season to ensure thecontinued effectiveness ofinsect-resistant corn varieties.

EPA has issued new refine-ments to its Insect ResistanceManagement (IRM) ComplianceAssurance Program (CAP), sup-ported by the Agricultural

Biotechnology Stewardship Tech-nical Committee (ABSTC), aconsortium of Bt corn registrantsthat includes Dow, Monsanto,Pioneer, and Syngenta. ABSTCplans a heightened refuge educa-tion campaign this year.

ABSTC IRM SubcommitteeCo-Chairman Michael Smithof Pioneer said complianceprograms to date have proveneffective in maintaining theefficacy of Bt corn borer,

rootworm, and combo bor-er/rootworm products.

CAP survey results for 2010were largely unchanged from2009, with the majority ofgrowers found to have plantedrequired refuge sizes and themajority of Bt acres includingappropriate non-Bt refuge.

EPA changes in part reflectcontinued introduction of newBt technologies, said IRM Sub-committee Co-Chairman Joanne

RESOURCES


New Bt guidelines, tighter monitoring in 2011

Group seeks to study biochar uses before biomass byproduct debutsBY KAY SHIPMANFarmWeek

Illinois researchers and others are working to learn aboutpossible agricultural uses for a new byproduct from the pro-duction of bio-oil and syngas.

“As we ramp up biomass production of bio-oil or syngas,the low-temperature, low-oxygen process produces biochar,”said Duane Friend, a University of Illinois Extension educatorin natural resource management.

While giving recent presentations about biochar, Friend saidhe learned few people have heard of the substance or its possi-ble uses.

Friend is a member of the Illinois Biochar Group that isworking for research into the production and uses of thebyproduct.

More information is available online at {www.biochar-inter-national.org/regional/Illinois}.

Biochar is a high-carbon, fine-grained, porous material pro-duced from biomass using low temperatures and low-oxygencombustion, according to Friend. The material is differentfrom charcoal, which is from produced from heat and mainlyused as a fuel.

“One reason we are interested in biochar is as a soil amend-ment, but it’s not new and has been used by other cultures,”Friend added.

Historians have found evidence that ancient Amazonian civ-ilizations used biochar, and the dark soils are still productive500 years later, according to Friend.

Biochar helps increase the soil’s nutrient retention andincreases its water-holding capacity, Friend explained. “It(biochar) is a stable organic compound that sticks in the soiland doesn’t degrade,” he added.

“There is still a lot of research needed — the best way to useit, the chemical and physical properties, the best form and thebest way to apply it (to soil),” Friend continued.

The Illinois Biochar Group’s goals include research to estab-lish standardized biochar production methods and to under-stand how to produce biochar that is beneficial for agriculturaluses without any adverse affects on crops or the environment.

For more information about biochar or the biochar group,Friend recommended individuals contact Nancy Holm, thesponsored research coordinator at the Illinois Sustainable Tech-nology Center at the U of I in Urbana-Champaign. She may bereached by e-mail at [email protected] or by phone at217-244-3330.

A Thursday USDA Nation-al Resources ConservationService (NRCS) regionalforum in Rock Island isdesigned to gather local inputon the 2012 farm bill’s Con-servation Title.

Producers may attend todiscuss conservation problems,solutions, concerns, and ideasfor NRCS to use “in develop-ing the best public policy forconservation of the nation’snatural resources.”

The forum is from 9:30 a.m.to 4:30 p.m. at Augustana Col-lege’s Olin Technology Center,at 639 38th Street, Rock Island.

It is the only forum to be heldin Illinois.

NRCS is seeking public inputon water security, climate vari-ability, landscape integrity andother critical conservation issuesas required in the federal Soil andWater Conservation Act, throughsix regional forums. An addition-al national forum is scheduledApril 7-8 in Washington.

Information from thoseevents will be compiled into thefederal Resources ConservationAct Appraisal 2011 (RCA) forsubmission to Congress inpreparation for farm bill debate.

The Rock island forum will

begin with review of the RCAprocess, segueing into watersecurity discussions at 10 a.m.After an 11:30 a.m. lunch,NRCS will address climateconcerns and, at 2:30 p.m.,landscape integrity issues.

The event is organized byNRCS in collaboration withthe Farm Foundation and theAmerican Farmland Trust.

There is no charge to par-ticipate, but registration isrequired to ensure adequateseating. Register onlineat {www.farmfoundation.org}.For more information, call630-571-9393.

NRCS seeks input on 2012 farm bill

Carden of Monsanto. Thoseinclude reduced-refuge productssuch as Monsanto’s SmartStaxor Syngenta’s AgriSure Vipteraand new “refuge-in-a-bag”products such as Pioneer’s Acre-Max which offer an IRM-com-pliant mix of Bt/non-Bt seed.

Carden stressed the need forgrowers to understand require-ments associated with newproducts “as we bring them tocommercialization.”

“Growers have a lot ofchoices today with unique IRMrequirements, which can com-plicate their refuge planningstrategies,” Smith toldFarmWeek and RFD Radio.“It’s encouraging to see compli-ance results are stabilizing. Atthe same time, there areimprovements that should beaddressed.”

Under new CAP terms, on-farm compliance assessmentswill be conducted by an inde-pendent third party, focusing onareas with the highest resistancedevelopment risks and growerswho did not buy sufficient

refuge seed from a Bt corn reg-istrant.

Growers found to be out ofcompliance now face a higherprobability of losing access toBt corn if compliance is notestablished and maintained, andthose farmers will be checkedmore frequently by registrants.Seed bag tags will better depictrefuge size requirements.

Smith urged growers to con-sult seed dealers or sales agentsabout refuge size and distancerequirements for individual prod-ucts. The National Corn Grow-ers Association’s online IRM“calculator”{www.irmcalulator.com} helpsgrowers calculate appropriaterefuge, the quantity of standardseed bags to buy for both traitand refuge, and possible prod-uct-specific planting configura-tions.

“We want to make sure com-pliance is taken seriously,” Car-den maintained. “It’s veryimportant for us to maintaintrait durability of Bt corn traitsfor the future.”

FROM THE COUNTIES


CARROLL — Carroll,Ogle, and Winnebago

County Farm Bureaus willsponsor a bus trip Friday, April8, to the Case IH plant, Racine,Wis. The bus will leave theWinnebago County FarmBureau at 7 a.m. and return byapproximately 4 p.m. Cost is$27, which includes transporta-tion, tour, and lunch. Call theFarm Bureau office at 815-244-3001 for more information.

• Carroll, Jo Daviess, andStephenson County FarmBureaus will sponsor a North-west Illinois Wine Trail Satur-day, March 19. Tickets are $25.Call the Farm Bureau office at815-244-3001 or visit the web-site {www.carrollcfb.org} formore information.

• The Carroll County FarmBureau Foundation will awardfive $1,000 general ag and one$1,000 Harold Schmidt Memo-rial scholarships. Applicationsare available at the FarmBureau office or on the website{www.carrollcfb.org}. Dead-line to return the applications isMarch 24.

CHAMPAIGN — AViewpoint meeting will

be at 7:30 a.m. Tuesday at theMarket Street Eatery, Sadorus.Breakfast will be served. Callthe Farm Bureau office moreinformation.

EFFINGHAM — TheCommodities and Mar-

keting Action Team will spon-sor a workshop on options andfutures at 7 p.m. Monday(today) at the Farm Bureauoffice. Doug Yoder, IllinoisFarm Bureau senior director ofaffiliate and risk management,will be the speaker. Call theFarm Bureau office a 217-342-2103 or e-mail ecfbm-gr@consolidated. net for reser-vations or more information.

• The Local Affairs ActionTeam will sponsor an on-the-road seminar at 7 p.m. Wednes-day at the Farm Bureau office.State Police Trooper SteveTarter will discuss truck weightlimits, medical card changes,and comprehensive safetyanalysis. Call the Farm Bureauoffice at 217-342-2103 or e-mail [email protected] for reser-vations or more information.

• Farm Bureau and CountryFinancial representatives willsponsor a farm estate andtransfer planning seminar at 6p.m. Tuesday, March 8, at theFarm Bureau office. JamesHughes, Country Financialsecurity consultant, will be thespeaker. Dinner will be served.Call the Farm Bureau office at217-342-2103 or your CountryFinancial insurance representa-tive by Monday (today) forreservations or more informa-tion.

• The annual meeting will beat 6:15 p.m. Monday, March 14,at the Teutopolis Knights of

workshop at 1:30 p.m. Tuesday,March 8, at the Farm Bureauauditorium. Cynthia Haskins,Illinois Farm Bureau managerof business development, willdiscuss grants and funds avail-able to specialty growers andhow to market their crops. Callthe Farm Bureau office formore information.

WAYNE — FarmBureau will sponsor a

crop insurance meeting at 7p.m. Tuesday at Frontier Com-munity College FoundationHall, Fairfield. Doug Yoder,Illinois Farm Bureau seniordirector of affiliate and riskmanagement, will be the speak-er. Call the Farm Bureau officeat 618-842-3342 for reserva-tions. Visit the website{www.waynecfb.com} formore information.

• The annual meeting will beat 6 p.m. Friday, March 11, atthe Cumberland PresbyterianChurch, Fairfield. The YoungLeader Committee will collectnon-perishable food donationsfor the Harvest for All cam-paign, as well as hold a drawingin the raffle for an Echo CS-360 chainsaw. Call the FarmBureau office at 618-842-3342for reservations by Friday. Vis-

it the website{www.waynecfb.com} for thecomplete notice of the annualmeeting.

• The Young Leader Com-mittee is raffling off an EchoCS-360 chainsaw to raise fundsfor its collegiate scholarshipand safety day. Tickets are $5and may be purchased at theFarm Bureau office or from aYoung Leader member. Thedrawing will be during theannual meeting March 11. Thechainsaw was donated byMcLean Implement Inc.,Albion.

WHITE — FarmBureau will sponsor a

crop insurance meeting at 1p.m. Tuesday at the FarmBureau office. Doug Yoder,Illinois Farm Bureau seniordirector of affiliate and riskmanagement, will be the speak-er. Call the Farm Bureau officeat 628-382-8512 for reserva-tions. Visit the website{www.whitecfb.com} for moreinformation.

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

Columbus building. A porkbarbeque and chicken dinnerwill be served. Cost is $3. Callthe Farm Bureau office by Fri-day for reservations or moreinformation.

HANCOCK — FarmBureau will sponsor an

economic and weather outlookmeeting at 6 p.m. Monday,March 7, at the Marine Bankand Trust. Parry Dixon, ADMeconomist, and Jim Angel, stateclimatologist, will be the speak-ers. Dinner will be served.Call the Farm Bureau office at217-357-3141 for more infor-mation.

LASALLE — TheLaSalle County Farm

Bureau Foundation has two$1,000 scholarships available.One will be awarded to a highschool senior who will enroll inan ag-related field of study andone to a current college studentenrolled in an ag-related fieldof study. Deadline to returnapplications is Friday, March25. Call the Farm Bureau officeat 815-433-0371 or downloadan application from the website{www.lasallecfb.org}.

• The LaSalle County Stock-man’s Association will sponsorthe “March Thaw II” programat 6 p.m. Wednesday at PitstickPavilion, Ottawa. Dinner willbe served. Topics will includeherd health, mineral programand show feeds, and Pfizerproducts. Call Terry Patyk at815-488-1371 or Dave Iser-mann at 815-257-0110 forreservations or more informa-tion.

LEE - Applications forthe Bureau, Lee, and

Whiteside Summer Ag Instituteare on the Farm Bureau web-site {www.leecfb.org}. Teach-ers may apply by April 29.Cost is $80 for Farm Bureaumembers and $100 for non-members. Call the FarmBureau office for more infor-mation.

MADISON — Theannual meeting will be

at 7 p.m. Friday at the Ameri-can Legion Hall, Edwardsville.Call the Farm Bureau office at618-656-5191 for reservationsor more information.

MERCER — FarmBureau will sponsor a

federal crop insurance and2012 farm bill meeting at 11a.m. Wednesday at the FarmBureau office. Doug Yoder,Illinois Farm Bureau seniordirector of affiliate and riskmanagement, will be the speak-er. Lunch will be served. Callthe Farm Bureau office at 582-5116 for more information.

• In celebration of Ag Week,Farm Bureau will host a fooddrive March 14-18. Membersmay drop off their donationsto the Farm Bureau office from8 a.m. to 5 p.m. that week.Members will receive a chanceto win a $50 gift certificate to

Liberty Station Steakhouse forevery item they donate. Callthe Farm Bureau office at 582-5116 for more information.

MONTGOMERY —The Prime Timers will

meet at noon Wednesday,March 16, for a luncheon meet-ing. A corned beef and cab-bage meal will be served. Costis $8. Mike Plunkett, Mont-gomery County board chair-man and senior editor of TheJournal News, will be thespeaker. Call the Farm Bureauoffice at 217-532-6171 forreservations or more informa-tion.

VERMILION — TheLegislative and Local

Affairs Committee will sponsora “What’s Going on in IllinoisGovernment” discussion andViewpoint meeting at 9:30 a.m.Monday, March 7, at the FarmBureau auditorium. Panelistswill include Chuck Hartke, for-mer Illinois director of agricul-ture; Bill Black, retired statelegislator; and Kevin Semlow,Illinois Farm Bureau directorof state legislation. Call theFarm Bureau office for moreinformation.

• Farm Bureau will sponsora marketing specialty crops

©2010 GROWMARK, Inc. A12338B

“WHY DO WE USE FS?”

“Trust, dependability and solutions.

We’ve been working with FS for over 30 years. They’re a part of our root system.

Spring, summer and fall, they always come through with good direction and good advice. With their nutrient management plans and variable rate technologies, we’re less wasteful, more environmentally friendly and more profitable.

Why do we use FS?

At the end of the day, it’s about working with someone you trust.”

THE LOCAL ANSWER TO YOUR WORLD OF NEEDS.

Stan & Willis KelseyCorn and soybean growers

™

PROFITABILITY


Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.00-58.00 $45.8440 lbs. $77.98-78.50 $78.2350 lbs. n/a n/aReceipts This Week Last Week

25,214 24,563*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 $80.41 $79.06 1.35Live $59.50 $58.50 1.00

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn2-17-11 41.0 31.0 38.12-10-11 35.5 24.9 27.5Last year 42.9 20.3 42.8Season total 1100.0 842.0 776.6Previous season total 1072.0 604.9 772.6USDA projected total 1590 1300 1950Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 110.83 n/a n/aHeifers 110.70 n/a n/a

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 Change128.60 128.78 -0.18

CME feeder cattle index — 600-800 Lbs.

n/a

Lamb prices

U.S. economy continues to show steady improvement BY JIM CHARLESWORTH

The global economy con-tracted in 2009 for the firsttime in more than 60 years.The highly integrated worldfinancial, product, and servicemarkets have provided a con-duit to rapidly transmit reces-sionary pressures throughoutthe global economy.

Global gross domesticproduct (GDP) grew 3.9 per-cent in 2010 and is forecast toadvance another 3.5 percent in2011.

The global economy contin-ues to advance at an unevenpace, led by strong growth indeveloping economies as thedeveloped economies of theUnited States and Europe con-tinue to face slower growthprospects, weaker labor mar-kets, and difficult politicaldecisions regarding the futuretrajectory of governmentspending and taxation.

On the other hand, eco-nomic growth in most devel-oping countries continues tolead growth in world GDP.

The BRIC countries (Brazil,Russia, India, and China)remain strong. These fourdeveloping countries repre-sent 42 percent of the globalpopulation and 12 percent ofthe global economic output.

The United States officiallyentered a recession in Decem-ber 2007. Recovery has beensluggish but steady. U.S. eco-nomic output finally regainedthe level reached prior to therecession as growth sped upon stronger consumer spend-ing and exports.

Consumer spending alonerepresents more than 70 per-cent of the total economicoutput.

U. S. GDP grew at 2.9 per-cent in 2010 and is forecast toexpand 3.1 percent in 2011.The economy has grown forsix consecutive quarters, aver-aging 3.3 percent, right in linewith the historical average.

The economic expansionhas been fueled by a jump inconsumer spending, a crucialchange from earlier in the

recovery when growth reliedheavily on business investingand rebuilding product inven-tories.

Tax cuts and employmentgains should spur additionalgrowth. The extension of theBush era tax cuts for twoyears and the 2 percent reduc-tion in payroll taxes this yearare expected to boost con-sumer spending to 3.2 per-cent, compared with 1.8 per-cent in 2010.

The average unemploy-ment rate is expected to dropslightly during 2011.

No question the economicoutlook still faces some omi-nous clouds. Some economistsare concerned that the year-end consumer spendingsplurge could fizzle.

The most challenging eco-nomic indicator centersaround the historically highunemployment rate, currentlyat 9 percent. Collapse of thehousing market is anothermajor contributor to the slow-down, although recent indica-

tors are showing stabilizationwith slight improvement.

Jim Charlesworth is GROW-

MARK’s soon to retire marketingresearch director. His e-mailaddress is [email protected].

Midwest farmland value jumps 12 percent in 2010; trend looks to continueBY DANIEL GRANTFarmWeek

The most recent farmlandvalue survey conducted bythe Federal Reserve Bank ofChicago confirmed whatmany farmers and landown-ers have experienced at auc-tions in recent months.

Midwest farmland valuesin 2010 rose dramatically,and so far this year thetrend shows no signs ofslowing down.

Farmland values in theSeventh Federal District,which includes Illinois, Indi-ana, Iowa, Michigan, and

Wisconsin, increased lastyear by an average of 12percent. It was the second-largest increase in farmlandvalues in the past 30 years.

“Overall, 2010 was a stel-lar year for agriculture inthe Midwest,” the FederalReserve Bank stated in itsreport.

Since 1976, the only yearthere was a larger increase inMidwest farmland valueswas 2007.

The state with the largestincrease in the value of“good” farmland in the Sev-enth Federal District lastyear was Iowa, at 18 per-cent.

Elsewhere, the increase in“good” farmland value in2010 totaled 12 percent inIndiana, 11 percent in Illi-nois, 7 percent in Wisconsin,

and 4 percent in Michigan.A surge in commodity

prices last year was the pri-mary driver of land prices,according to the Federal Re-serve Bank.

Cash prices last year in-creased by 57 percent forcorn, 27 percent for soy-beans, 24 percent for cattle,and 16 percent for hogs, ac-cording to the bank’s Agri-cultural Newsletter.

Meanwhile, Midwest agcredit conditions strength-

ened in the fourth quarter of2010.

Interest rates decreasedto an average of just 5.85percent for operating loansand 5.7 percent for farmreal estate loans while theaverage loan-to-deposit ratiodipped to a seven-year low.

The outlook for agricul-ture prices this year looksbright as well. USDA recent-ly projected a 20 percent in-crease in net farm income.

However, farm incomeand farmland prices couldtake a hit if interest ratesrise or if a Treasury debt-buying program to stimulatethe economy creates finan-cial imbalances at that arenegative to ag, warnedThomas Hoenig, presidentof the Federal Reserve Bankof Kansas City.

“History has taught us

that it is nearly impossibleto determine how much ofthe farmland boom may bean unsustainable bubble dri-ven by financial markets andhow much results from fun-damental changes in demandand supply conditions,”Hoenig testified before theSenate Ag Committee.

“Rising interest ratesoften coincide with fallingfarm revenues and highercapitalization rates, a de-pressing combination forfarmland values.”

Up next, the Illinois Soci-ety of Professional FarmManagers and Rural Ap-praisers will release resultsof its annual farmland valuesurvey on March 15 and 16at the group’s Illinois LandValue Conference at theParke Hotel and ConferenceCenter in Bloomington.

FarmWeekNow.com

To learn more about Mid-west farmland values, goto FarmWeekNow.com.

PROFITABILITY


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 any pro-jections, recommendations, or advice or anyother act of omission.

CASH STRATEGISTCorn Strategy

�2010 crop: Like othergrains, trading fund liquidationhit prices hard, leaving a short-term negative technical pic-ture. If May futures slip under$6.62, the decline could extendto $6 to $6.10. The probabletiming would be the 40-weeklow due in late March. Giventhe break, the argument tohold only “gambling bushels”got stronger. If you holdmore, use rallies to make sales.Hedge-to-arrive (HTA) con-tracts for winter/spring deliv-ery are still the best tool.

�2011 crop: Even thoughdownside risk has grown, holdsales at 30 percent. Thereshould be another good sellingopportunity after the 40-weekcycle bottoms, but not onethat will necessarily be as highas the recent peak.

�Fundamentals: USDA’s“first shot” at next year’s fun-damentals pointed to a picturea little less tight. We think thehigh insurance guaranteesensure a big planting unlessplanting is extremely late. Anda good yield is still far fromsecure.Soybean Strategy

�2010 crop: Estimates forthe South American cropscontinue to grow. Harvest is alittle behind last year, but notaverage. South American sup-plies will enter the worldpipeline in three to four weeks,rapidly diminishing ourexports. Without a weatherproblem, lower prices areahead. Wrap up sales onstrength.

�2011 crop: The first new-crop supply/demand forecastisn’t negative, but the endingstocks still could increase for avariety of reasons. Given therecent break, we think itimportant to use strength toget sales up to 30 percent.Plan to increase them to 50percent by early summer.

�Fundamentals: Evenwith the initial relatively tightnew-crop supply/demandforecast, a lot of unknownspersist. First and foremost isthe acreage that will be plantedthis year, and we can build ascenario that it will be evenlarger. At the same time,

there’s risk demand will fallshort of expectations, espe-cially given current prices.Wheat Strategy

�2010 crop: Liquidationfrom the big trading fundsturned the wheat market lower.Prices on the Chicago Maycontract took out key support.The next support doesn’tcome until $6.91. If you stillhave inventory, use rallies towrap them up. Because of thefutures carry, HTA contractsfor winter/spring delivery arestill the best marketing tool.

�2011 crop: Use ralliesabove $8.30 on Chicago July

2011 futures for catch-up sales.We’ve considered adding tothem, but don’t want to untilthe crop breaks dormancy.And once the liquidation breakis over, there should be anothergood rally for sales. We stillgenerally prefer HTA con-tracts.

�Fundamentals: Politicalunrest in Africa and the MiddleEast can affect export busi-ness. The Chinese droughtarea continues to subside. ButUSDA’s initial 2011 wheat cropprojection of 2.08 billionbushels doesn’t leave much“margin for error,” either.

USDA’s “best estimate” forthe 2011/12 supply/demandstructure at its Outlook Forumwill serve as the baseline fromwhich the trade will develop itsown forecasts for the 2011/12fundamental structure.

The surprise of these initialestimates may have been theyprojected even smaller endingstocks than they did on thebaseline forecasts released twoweeks ago. They still aren’t atlevels tight enough to warranthigher prices than those themarkets experienced over thelast three weeks. But they clear-ly suggest there’s no margin forerror this growing season.

At this writing, the fullscope of the forecasts aren’tavailable, but the basic num-bers released last week, offeran insight into the basic struc-ture with which they started.

USDA analysts stayedclose to the acreage numbersused in the baseline estimates.It should be noted the plant -ing numbers they used are stillnot based on any survey, sothere will be some skepticismregarding their validity.

They increased total plantingsof the eight major crops nearly10 million acres from last year.On first glance, it looks as thoughthey are taking a conservativestance, given the acreage availableand the higher price levels.

As we outlined a couple ofweeks ago, plantings of all crops

Basis charts

declined 8.3 million acres in pri-mary corn-producing areas from2008 to 2010. Factor in a poten-tial 2.5-million-acre increase indouble-crop soybean plantings,and there’s at least nearly 11 mil-lion more acres available to beplanted this year. And history hasproven that when producers areoffered exceptional profits, theyplant a lot of acres. This year’sinsurance guarantees offer thatexceptional profit opportunity.

USDA projected a 13.73-bil-lion-bushel corn crop, a 3.345-billion-bushel soybean crop, anda 2.08-billion-bushel wheat crop.It looks as though analysts usedyields close to 160-161 bushelsfor corn, 43.4 bushels for soy-beans, and 42.5 bushels forwheat to reach those projec-tions. We estimated what theyused for harvested acreage tocalculate yields. The actual datashould come after FarmWeekwent to press Friday.

The demand and endingstocks estimates may be evenmore important. The 865-mil-lion-bushel corn, 160-million-bushel soybean, and 663-mil-lion-bushel wheat endingstocks estimates were smallerthan the baseline projections,particularly the corn number.

None is large enough to allowfor significant crop problems thisgrowing season. At the sametime, none is tight enough to sup-port prices at current levels if thecrops end up as big as projected.

We think it’s reasonable toexpect production could exceedthese estimates by a modestamount. And, if world cropsare improved this year, exportdemand could fall short of theprojections used to build theseestimates, except maybe forsoybeans. The end result couldbe slightly larger ending stocks.

Short term, these numbersaren’t strong enough to generatesignificant buying interest. Butthe uncertainty will keep pricesgenerally strong into the earlypart of the growing season,unless planting numbers arehigher than USDA is expecting.Even then, they aren’t strongenough to prevent prices frombreaking hard if something trig-gers more speculative liquidation.

Cents per bu.

Plantings/crops coming into focus

PERSPECTIVES


I remember my first visit to the Uni-versity of Illinois like it was yesterday.It was early on a Friday morning and Iwas excited to be missing a day ofschool. Although, I was not so excitedabout attending yet another collegeopen house.

I had experienced anumber of career fairsand open houses. Theywere all the same –- bor-ing. But my parentsassured me that Explo-rACES at the U of I,College of Agricultural,Consumer, and Environ-mental Sciences (ACES),would be different.

Little did I know that by the end ofthe day I’d be convinced to spend fouryears at the U of I.

As an anxious, excited high schooljunior, I set foot on campus for thefirst time and suddenly felt nervous. Iwas scared to open my mouth and talkto the students and advisers, andinstead made my parents do all the talk-

ing for at least the first half hour.I soon realized the students and

advisers didn’t want to talk with myparents. They were interested in talkingwith me. After all, I was the one whoshould be deciding my future.

The students, who were there to helpme learn about the College of ACES,had been in my shoes just a few shortyears ago. They knew how I felt.

I ended the day with a smile on myface. My head spun with excitementabout all of the opportunities I couldtake advantage of during my four years ata student at the U of I College of ACES.

Fast forward to now. As a second-semester freshman in

ACES, I can’t imagine being anywhereelse. It is because of the wonderful expe-riences I’ve had so far that I hope toshare my story and enthusiasm withprospective ACES students at Explo-rACES 2011 on March 11 and 12.

ExplorACES is designed for studentsand coordinated by students.

Our dedicated team has been planningthis event since September. It’s nothing

ordinary — trust me.Once on campus, prospective students

and their families will find themselvesengrossed in conversations with studentsand dedicated advisers who are passion-ate about the College of ACES.

While you’re here, take time to visitthe exhibits that you find interesting, askquestions, and learn as much as you canto help you connect with your future.You will get honest answers from thestudents and learn about scholarships,housing, majors, and college life in gen-eral.

No matter what your career interestsare, I can guarantee there is somethingfor you at ExplorACES. From amongthe Illini Pullers’ “tricked-out” tractor,horticulture students demonstratingflower arranging, and the fistulated cow— something will catch your eye!

I hope you’ll also take a break andenjoy a meal at the ACES food tent.ACES students will be serving food andvisiting with families, offering anotheropportunity for you and your family toask questions.

At ExplorACES, you’ll meet currentstudents who will share their experi-ences with you and explain why theychose the College of ACES.

Between the outstanding scholar-ships, undergraduate research opportu-nities, leadership development, out-standing faculty, or the feeling of the“ACES family” within the larger univer-sity — our college is a unique experi-ence.

This year, I’ve made connections withso many people and had experiencesthat I never would have found in anordinary classroom. But don’t take myword for it, experience the College ofACES for yourself !

Mark your calendars for March 11-12and come to the U of I to experienceExplorACES. I am sure you will beimpressed with the ACES atmosphereand abundant opportunities. Hope tosee you there!

Ellen Reeder of Little York is a freshmanstudying agricultural communications with afocus on advertising.

The country recentlymarked what would have beenPresident Ronald Reagan’s100th birthday.

His Feb. 6 birthday was cele-brated in California at the

Ronald ReaganMuseum, inTampico, Ill.,where he wasborn, in Dixon,Ill., where he was

raised, andhere in Wash-ington, D.C., atthe RonaldReagan Build-

ing. I attended the latter event.The crowd was filled with indi-viduals who worked for himalong with many admirers whoprobably wished they had.

Before he selected me toserve as his secretary of agri-culture, I didn’t know RonaldReagan. But with the supportof then-Sen. Bob Dole andthen-Gov. Jim Thompson, Iwas invited in late Decemberto meet with President-electReagan.

I flew to Los Angeles,checked in at my hotel, andwent straight to the home ofPresident and Mrs. Reagan.Nancy opened the door andwelcomed me. That first meet-ing included Ed Meese, Rea-gan’s closest adviser; MartyAnderson, his economic advis-er; and Mike Deaver, hisdeputy chief of staff.

We spent two hours dis-cussing everything about gov-

ernment’s role — not so muchon farm programs. A fortunatething for me is that I was theonly one in the room that real-

ly knew agri-culture.

I rememberSenator Dolehad told thepresident thathe wanted a“hands-onfarmer fromthe heartland.”

The presi-dent reached out to me to getto know me, to know my phi-losophy of government, andhow I visualized the role ofthe secretary of agriculture.The meeting concluded, and Ireturned to the hotel.

Within 30 minutes, thephone rang.

The caller said, “This isRonald Reagan, and I wouldlike for you to serve as my sec-retary of agriculture.”

I was stunned. I just said,“Mr. President, I would beproud to serve.” I really hadno idea what I was gettinginto.

That first meeting withPresident Reagan told me twothings about the president. Hewas guided by philosophy andinstinct.

He concluded that my phi-losophy was consistent withhis — and it was. We bothbelieved in smaller govern-ment, less taxes, and less regu-lation.

The second thing was hemade many important deci-sions based on instinct. He did-n’t really know me, but instincttold him I would be OK.

His leadership and opti-mism lifted the country.Remember he told us, “Thebest days are still to come forthis shining city on the hill.”

The United States of Amer-ica was blessed to have hadRonald Reagan’s leadership atthat critical time.

John Block, a Gilson native and for-mer U.S. agriculture secretary in theReagan administration, is a seniorpolicy adviser with the Washington,D.C., firm of Olsson, Frank, Wee-da, and Terman. His e-mail addressis [email protected].

Ronald ReaganJOHNBLOCK

A tribute to President Reagan from his agriculture secretary

ELLENREEDER

Jenny Neef, left, career services coordinator at the University of Illinois’ College of Agriculture, Consumer, and Environ-mental Sciences (ACES) chats with visiting high school students at ExplorACES 2010. (Photo courtesy of the U of I Col-lege of ACES)

ExplorACES

Students, connectwith your future

at College of ACES

FarmWeek February 28 2011

Documents

illinois farm bureauon

dinneen believ

dinneen indictedu

choice of ethanol fuels

jeff flake r

typical farm community

john sullivan r

e r sreceive advice