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Periodicals: Time Valued Monday, March 14, 2011 Two sections Volume 39, No. 11 FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau ® on the web: www.ilfb.org COUNTY FARM BUREAUS are holding various activities across the state this week to celebrate National Ag Week. .......................12 ILLIOIS EFFORTS TO expand high-speed Internet contin- ue with progress on federally fund- ed Internet projects. ......................9 THE ILLINOIS FARM Bureau Market Study Tour got underway last week with visits to Utica and Convent, La. ...................2 Ag leaders focus on flurry of legislative issues BY KAY SHIPMAN FarmWeek Agriculture Legislative Day brought a flurry of agriculture issues that continued through- out the week. With a 4-4 vote Thursday, the House Revenue and Finance Committee held in committee an amendment that proposed to end sales tax and income tax exemptions on Dec. 31, 2012. IFB had called for member contacts with lawmakers to oppose House Amendment 1 to SB 4. An identical Amend- ment 2, sponsored by Majority so this issue does not raise its head again. I encourage every- one when you see your state legislators to let them know what the benefit of the sales tax exemptions means for your personal operation and the economic value all those pur- chases have in your local area.” The House took no action on SB 4, the bill connected with Amendments 1 and 2. SB 4 proposed to provide an income tax credit to the Conti- nental General Tire manufac- turing plant in Mt. Vernon. IFB has no position on SB 4 as passed by the Senate. During Agriculture Legisla- tive Day at the state Capitol, Illinois Agriculture Director Tom Jennings encouraged ag leaders to remind lawmakers that the Illinois Department of Agriculture (IDOA) plays important roles in protecting and educating consumers. “We (agriculture) are the biggest and best thing happening in Illinois right now,” Jennings said. Comptroller Judy Baar Top- inka wants input on policies and issues that are important to agriculture and rural com- munities so she soon will name a rural affairs and rural advisory group, Cory Jobe, her deputy chief of staff, reported to ag leaders. In other legislative news: • The Senate Agriculture and Conservation Committee passed SB 2012, sponsored by Sen. Michael Frerichs (D- Champaign), that would change how the Illinois Coun- cil on Food and Agriculture (C- FAR) research is funded. IFB supports the legislation that follows recommendations See Leaders, page 8 Leader Rep. Barbara Currie (D- Chicago), proposed to end agricultural sales tax exemp- tions for seed, feed, fertilizer, agricultural equipment, regis- tered breeding horses, and semen for artificial insemina- tion of livestock. “We are pleased the House Revenue and Finance Committee members understood the severity of the impact House Amend- ments would have on farmers and the local rural economies and chose not to advance the sunset on sales tax exemptions for agri- cultural inputs,” said IFB Presi- dent Philip Nelson. “I want to thank each per- son who contacted their state representative and senator on this issue,” Nelson said. “It shows the importance of everyone’s involvement in contacting their legislators and sharing the importance of the sales tax incentives for us.” He warned: “We need to be diligent in the coming weeks Sean Kinsella, rural Normal, checks the levels of corn being loaded in a semi-trailer recently. This was the last of the corn that Kinsella and his father, Mike, had stored on their farm. Kinsella said the $7.05 per bushel price for corn supplied an added incentive to clean out their bin. (Photo by Ken Kashian) DOT now viewing farmers who crop share as ‘for-hire’ Farmers who have crop share leases no longer qualify for an agricultural exemption from more stringent trans- portation rules under a new interpretation by U.S. Depart- ment of Transportation (DOT) officials, according to Mark Gebhards, Illinois Farm Bureau executive director of govern- mental affairs and commodities. Last week in Washington, D.C., IFB President Philip Nel- son and IFB staff discussed the issue with Marlise Streitmatter, DOT deputy chief of staff, and Anne Ferro, federal motor carri- er safety administrator. “We’re on top of the issue,” Nelson said. “We’re working through DOT and Secretary (Ray) LaHood’s office to try to address concerns ... We think we had good dia- logue in an hour-long meeting with them and tried to get the issues on the table.” DOT interpreted federal transportation regulations to mean farmers who truck their landlords’ share of grain would be considered “for-hire carri- ers.” Farmers who cash rent farmland are not impacted. Ferro acknowledged the new “for-hire” interpretation came from one of her employ- ees who works closely with truck safety officials in Illinois. Recognizing the potential impact of the inter- pretation for Illinois farmers and for those in other states, Ferro pledged to begin gather- ing information and to report back to IFB later this week. Ferro also said the Unified Carrier Registration (UCR) program and the new entrant audit program have exposed some rule interpretation issues with agriculture that should be addressed long term by a working group representing farm organizations, regulators, and vehicle safety advocates. Nelson told DOT officials that safety is a high priority for farmers, but suggested there’s a big difference between a “for-hire” carrier and a typical farmer who trucks his grain to market four months out of the year. Under the new interpreta- tion, farmers with crop-share leases would have to comply with regulations for “for-hire carriers” and need to obtain a commercial driver’s license (CDL) and follow alcohol and drug screening and testing rules. IFB staff also discussed the matter with Illinois State Police and Illinois Department of Transportation officials. The potential impact is sub- stantial because about 37 percent of the state’s acres were farmed under crop-share leases in 2009, according to University of Illi- nois data. — Kay Shipman FarmWeekNow.com View our photo gallery of activ- ities during Ag Legislative Day at FarmWeekNow.com.
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Page 1: FarmWeek March 14 2011

Per

iod

ical

s: T

ime

Val

ued

Monday, March 14, 2011 Two sections Volume 39, No. 11

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

COUNTY FARM BUREAUSare holding various activities acrossthe state this week to celebrateNational Ag Week. .......................12

I L L I O I S E F F O R T S T Oexpand high-speed Internet contin-ue with progress on federally fund-ed Internet projects. ......................9

T H E I L L I N O I S FA R MBureau Market Study Tour gotunderway last week with visits toUtica and Convent, La. ...................2

Ag leaders focus on flurry of legislative issues BY KAY SHIPMANFarmWeek

Agriculture Legislative Daybrought a flurry of agricultureissues that continued through-out the week.

With a 4-4 vote Thursday,the House Revenue andFinance Committee held incommittee an amendment thatproposed to end sales tax andincome tax exemptions onDec. 31, 2012.

IFB had called for membercontacts with lawmakers tooppose House Amendment 1to SB 4. An identical Amend-ment 2, sponsored by Majority

so this issue does not raise itshead again. I encourage every-one when you see your statelegislators to let them knowwhat the benefit of the salestax exemptions means for yourpersonal operation and theeconomic value all those pur-chases have in your local area.”

The House took no actionon SB 4, the bill connectedwith Amendments 1 and 2. SB4 proposed to provide anincome tax credit to the Conti-nental General Tire manufac-turing plant in Mt. Vernon.IFB has no position on SB 4as passed by the Senate.

During Agriculture Legisla-tive Day at the state Capitol,Illinois Agriculture DirectorTom Jennings encouraged agleaders to remind lawmakersthat the Illinois Department ofAgriculture (IDOA) playsimportant roles in protecting

and educating consumers. “We(agriculture) are the biggest andbest thing happening in Illinoisright now,” Jennings said.

Comptroller Judy Baar Top-inka wants input on policiesand issues that are importantto agriculture and rural com-munities so she soon willname a rural affairs and ruraladvisory group, Cory Jobe, herdeputy chief of staff, reportedto ag leaders.

In other legislative news:• The Senate Agriculture

and Conservation Committeepassed SB 2012, sponsored bySen. Michael Frerichs (D-Champaign), that wouldchange how the Illinois Coun-cil on Food and Agriculture (C-FAR) research is funded. IFBsupports the legislation thatfollows recommendations

See Leaders, page 8

Leader Rep. Barbara Currie (D-Chicago), proposed to endagricultural sales tax exemp-tions for seed, feed, fertilizer,agricultural equipment, regis-tered breeding horses, andsemen for artificial insemina-tion of livestock.

“We are pleased the HouseRevenue and Finance Committeemembers understood the severityof the impact House Amend-ments would have on farmers andthe local rural economies andchose not to advance the sunseton sales tax exemptions for agri-cultural inputs,” said IFB Presi-dent Philip Nelson.

“I want to thank each per-son who contacted their state

representative and senator onthis issue,” Nelson said. “Itshows the importance ofeveryone’s involvement incontacting their legislators andsharing the importance of thesales tax incentives for us.”

He warned: “We need to bediligent in the coming weeks

Sean Kinsella, rural Normal, checks the levels of corn being loaded ina semi-trailer recently. This was the last of the corn that Kinsella andhis father, Mike, had stored on their farm. Kinsella said the $7.05 perbushel price for corn supplied an added incentive to clean out their bin.(Photo by Ken Kashian)

DOT now viewing farmerswho crop share as ‘for-hire’

Farmers who have cropshare leases no longer qualifyfor an agricultural exemptionfrom more stringent trans-portation rules under a newinterpretation by U.S. Depart-ment of Transportation (DOT)officials, according to MarkGebhards, Illinois Farm Bureauexecutive director of govern-mental affairs and commodities.

Last week in Washington,D.C., IFB President Philip Nel-

son and IFB staff discussed theissue with Marlise Streitmatter,DOT deputy chief of staff, andAnne Ferro, federal motor carri-er safety administrator.

“We’re on top of the issue,”Nelson said. “We’re working

throughDOT andSecretary(Ray)LaHood’soffice to tryto addressconcerns ...

We think we had good dia-logue in an hour-long meetingwith them and tried to get theissues on the table.”

DOT interpreted federaltransportation regulations tomean farmers who truck theirlandlords’ share of grain wouldbe considered “for-hire carri-ers.” Farmers who cash rentfarmland are not impacted.

Ferro acknowledged thenew “for-hire” interpretationcame from one of her employ-ees who works closely withtruck safety officials inIllinois. Recognizing thepotential impact of the inter-pretation for Illinois farmersand for those in other states,Ferro pledged to begin gather-ing information and to report

back to IFB later this week.Ferro also said the Unified

Carrier Registration (UCR)program and the new entrantaudit program have exposedsome rule interpretation issueswith agriculture that should beaddressed long term by aworking group representingfarm organizations, regulators,and vehicle safety advocates.

Nelson told DOT officialsthat safety is a high priority forfarmers, but suggested there’sa big difference between a“for-hire” carrier and a typicalfarmer who trucks his grain tomarket four months out of theyear.

Under the new interpreta-tion, farmers with crop-shareleases would have to complywith regulations for “for-hirecarriers” and need to obtain acommercial driver’s license(CDL) and follow alcohol anddrug screening and testing rules.

IFB staff also discussed thematter with Illinois State Policeand Illinois Department ofTransportation officials.

The potential impact is sub-stantial because about 37 percentof the state’s acres were farmedunder crop-share leases in 2009,according to University of Illi-nois data. — Kay Shipman

FarmWeekNow.com

View our photo gallery of activ-ities during Ag Legislative Dayat FarmWeekNow.com.

Page 2: FarmWeek March 14 2011

HIGH PUMP PRICES MAY CUT ISP PATROLS —Drivers may see fewer Illinois State Police patrolling theroads if pump prices continue to climb, according to IllinoisStatehouse News.

Last week State Police Interim Director Patrick Keen tolda state House appropriations committee his proposed bud-get estimated gas prices at about $3.35 a gallon, lower thancurrent prices which don’t show signs of dropping.

“If gas prices do continue to increase — if they get toaround $4 a gallon — then we will have to ... think aboutwhat we’re going to do. But, possibly, we’ll have to go backto some of the things we did in 2008 when gas prices werehigh,” Keen told lawmakers.

Stationary patrols and requiring officers to car pool arepossibilities, according to Keen. Another option would be toask the General Assembly for more money. Keen said itdepends on how much gas costs and how long prices remainhigh.

CREDIT DEFENSE — There is no need for theethanol tax credit because federal law requires ethanol to beblended into gasoline, argued Sens. Tom Coburn (R-Okla.)and Ben Cardin (D-Md.).

The pair aim to eliminate the 45-cent-per-gallon ethanolblender’s tax credit, but ethanol producers say that would beunwise, as rising oil prices underscore the importance ofhomegrown fuels.

“If recharging our economy is a top fiscal and economicpriority for these senators, then job one should be redirect-ing the $1 billion a day we spend on foreign oil back into theU.S. economy,” Renewable Fuels Association President andCEO Bob Dinneen said.

Meanwhile, Growth Energy President Tom Buis criticizedSen. Dianne Feinstein’s (D-Calif.) similar attacks on the cred-it. The ethanol industry produces the equivalent of a millionbarrels of oil a day, “and we are the second largest supplierof fuel to our nation,” Buis noted, arguing risking ethanolproduction “would be even more disruptive and more costlyto our consumers and to our economy.”

DREDGING NEEDED — The Mississippi River sys-tem, with its 12,000 miles of inland waterways, helps morethan 30 states compete in international export markets, tothe tune of a potential $104 billion annually, BellevilleDemocrat U.S. Rep. Jerry Costello notes.

But dredging policies put in place by the Army Corps ofEngineers (Corps) have led to commercial navigation restric-tions on the Lower Mississippi, including draft restrictionsand daylight movement only on certain stretches. That’scaused serious economic disruptions for many domesticindustries that depend on the Mississippi River, Costellosaid.

As river levels change over the next few months, draftrestrictions will likely have to be reimposed because the riveris not being sufficiently dredged by the Corps.

Without a dependable deep-draft channel, many goodswill be placed at an immediate competitive disadvantage inexport markets, Costello warned. He thus encouraged Illi-noisans to write the president in support of dredging opera-tions.

FarmWeek Page 2 Monday, March 14, 2011

(ISSN0197-6680)

Vol. 39 No. 11 March 14, 2011

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

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© 2011 Illinois Agricultural Association

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Quick TakesTRANSPORTATION

Market study tour participantsbegin infrastructure odysseyBY JULIE ROOT

Have you ever wondered wheregrain goes once it leaves thefarm? It might just make its waydown to Zen-Noh Grain Corpo-ration in Louisiana.

Participants in Illinois FarmBureau’s Market Study Tour visit-ed Zen-Noh’s Convent, La. facility last week as they prepared forthe Panama-Colombia leg of the 2011 tour.

Producers from across the state — with guests from theIllinois Soybean Association — viewed the facility’s high-tech control area, barge-loading operations, and storagearea.

John Williams, an Illinois native and president and CEO ofZen-Noh, said his company’s facility has a total storage capacityof more than 4 million bushels and can load vessels at a rate of120,000 bushels per hour. The Convent site also loads railcarsand trucks.

Facilities suchas Convent areexpected to play agreater role inmoving Midwestcommodities toAsia followingupgrades to thePanama Canal set

for completion in 2014.Meanwhile, IFB projects exponential export growth with con-

gressional passage of South Korea, Colombia, and Panama freetrade agreements (FTAs).

The administration’s focus has been on Korea, but SenateFinance Chairman Max Baucus (D-Mont.) and ranking Republi-can Orrin Hatch (R-Utah) last week warned U.S. Trade Repre-sentative Ron Kirk there would be no passage of the Korea FTAunless it’s closely paired with the still-languishing Colombia andPanama deals.

“It’s clear to me that none of these trade agreementsare going to pass unless they’re all packaged,” Baucus said.

The Market Study Tour left Bloomington last Tuesday on itsinitial Chicago leg, by way of Utica and Oak Brook. Partici-pants visited the Consolidated Grain and Barge terminal at Uti-ca and met with the staff of Evergreen Shipping Agency inOak Brook.

The group then toured New Orleans port facilities beforeheading to Panama. The study tour concludes this week —details of the Latin American leg will appear in next week’sFarmWeek.

Julie Root is Illinois Farm Bureau’s radio news manager. Her e-mailaddress is [email protected].

U.S. customers rely on efficienttransport systemBY CHRIS MAGNUSON

Participants of the IllinoisFarm Bureau Market StudyTour (MST) last week wit-nessed first hand the impor-tance of an efficient trans-portation system to move U.S.ag products around the world.

MST participants last weekvisited Japanese-owned Zen-Noh Grain Corp. in Convent,La. and Consolidated Grainand Barge in Utica.

Both facilities load and shipU.S. feed grains and oilseedsto key destinations, particular-ly Asia, around the world.

“It is important to have goodcontrol of the origination ofgrain,” said John Williams, anIllinois native who is the CEOand President of Zen-Noh.“Japan has a two week supply.They have huge problems ifthey don’t receive a consistentflow of two vessels a week tofeed their livestock industry.”

Japan reportedly receivesas much as 95 percent of itscorn imports from the U.S.About three-quarters of thecorn is used for animal feed.

“They have very little stor-age,” Jay Hageman, a Vermil-ion County farmer, said ofZen-Noh. “They rely on us tostore a good quality productuntil they need it.”

On good days the Zen-Nohfacility reportedly unloads asmuch as 3.6 million bushels ofcorn or 3.9 million bushels ofsoybeans from barges, rail-cars, and trucks.

The efficient shipment offarm products is particularlyimportant to Illinois farmers.

Illinois ranks second nation-ally in the export of ag com-modities with nearly $4 billionworth of goods shipped to oth-er countries each year. Morethan 44 percent of the grainproduced in Illinois is exported.

Corn is loaded at Zen-Noh Grain Corp. in Convent, La. (Photo by Chris Magnuson)

FarmWeekNow.comListen to audio reports aboutthe tour from RFD Radio’s JulieRoot at FarmWeekNow.com.

Page 3: FarmWeek March 14 2011

GOVERNMENT

FarmWeek Page 4 Monday, March 14, 2011

Guest worker reform tradeoff for E-verification?BY MARTIN ROSSFarmWeek

If ag employers must jumpthrough new electronichoops, lawmakers should helpensure the hoop-jumping paysoff in terms of a reliable sea-sonal workforce, FarmBureau argues.

The U.S. House JudiciaryCommittee is expected tointroduce “E-Verify” legisla-tion that would set the stagefor mandatory electronicworker verification. A Judicia-ry panel recently weighed thepros and cons of E-Verify asan enforcement tool anddomestic job security mea-sure.

While the Internet SocialSecurity verification systemreportedly has made signifi-cant progress in recent years,questions remain regarding itsaccuracy and effectivenessand the burden it could placeon farmers who hire seasonallabor.

American Farm Bureau

guess. Much of the currentvisa debate focuses on theH1B program, which meets“the sexy, high-tech” employ-ment needs of companiessuch as Microsoft or Intel and

doesn’t spark some of theemotions associated with sea-sonal field labor, Schlegel said.

The H2B visa programprovides low-skilled non-agworkers for amusement parks,golf courses, and otheremployers. The H2B programis limited to 66,000 visas peryear, while H2A is the onlyvisa category with no suchcap.

But under current law,guest worker programs cannotadversely affect “similarlyoccupied U.S. workers,” evenif they are not locally avail-able. Schlegel noted a largeWashington State orchardistwho must advertise for U.S.workers from as far away asTexas before seeking H2Aworkers.

The United Farm Workersand other U.S. unions “hateguest worker programs,” buttolerate H2A because “it’s sotied up in regulations andexpense nobody uses it,” hesaid.

“Our problem is, if we getit to the point where itincludes an economic wage,it’s not administratively bur-densome, and it works forpeople, they’re afraid they’regoing to wake up one day andwe suddenly have a half-mil-lion ag workers with H2Avisas the United Farm Work-ers can’t organize as a union,”Schlegel warned.

Federation (AFBF) opposesmandatory verification. AFBFpolicy specialist Paul Schlegelhas asked Judiciary membersto consider tying verificationrequirements to H2A ag guestworker visa reforms thatwould help assure a reliable,cost-effective flow of tempo-rary workers.

“If they mandated this,number one, it’s unworkable,and, number two, we don’tknow where we’re going to getour labor,” he toldFarmWeek. “At least if we fixH2A, it would give some peo-ple some opportunity to get alegal workforce. They havenot said no to that.”

E-Verify’s cost is not theissue for producers — it’s afree program. But Schlegelargues “this is not the wayfarms work.” Most operationsdon’t have a human relationsdepartment, relying on a crewleader to recruit “a wholebunch of people in a shortamount of time.”

Producers who receive atentative non-confirmationnotice must ask the suspectworker to resolve the problemwithin a specified deadline. Inthe interim, they cannot fire

the worker or investigate doc-umentation on their own, andif harvest is completed and aworker moves on, the produc-er could face federal sanctionfor an illegal hiring.

Many rural employers lackbroadband resources neededto effectively use E-Verify,Schlegel added.

Where congressional H2Adebate will fall is anyone’s

‘At least if we fix H2A, it would givesome people some opportunity to get alegal workforce. They have not said noto that.’

— Paul SchlegelAmerican Farm Bureau Federation

House OKs grants, incentives

Global, domestic veterinary needs are growingIn an environment where

consumer trends and publicrisks demand skilled livestockveterinarians but profits favorpoodles and Persians, a Uni-versity of Illinois specialisthails efforts to entice studentsinto ag or public practice.

Last week, the U.S. Houseapproved measures to create anew grant program to expandoverall capacity in veterinarymedical schools and increasethe number of loan repay-ments for veterinarians work-ing in public health prac-tice. Farm Bureau supportsthe bill, now headed for Sen-ate passage.

American Farm BureauFederation President BobStallman argued the U.S.’s cur-rent 2,500 vet graduates a yearcannot meet demand in areasincluding food safety, bioter-rorism-emergency prepared-ness, environmental health,regulatory medicine, diagnos-tic medicine, and biomedicalresearch.

U of I College of Veteri-nary Medicine Prof. DennisFrench argues “there’s clearlya need for large animal agri-culture training.” Changingconsumer tastes underline theneed for skilled veterinaryprofessionals and researchersto ensure “preservation ofsafe and wholesome foods,”he said.

Demand for local, natural,organic, and other nichefoods increasingly produced

valuable large animal studies,French said.

Vet students are being dri-ven to “more economicallyadvantageous” companionanimal practice largelybecause of the “debt load”associated with their educa-tion, he said.

“Until we can provide thema salary commensurate withtheir interest levels and needs,(the House legislation) may beone way to lessen their debtload a bit,” French said.“Then, maybe they can goback to these rural communi-ties.” — Martin Ross

outside conventional produc-tion and animal health systemsraises concern about potentialdisease prevention and treat-ment, French suggested.Informed veterinary guidanceis crucial in ensuring alterna-tive practices don’t endangeranimal health or meat safety.

At the same time, Korea’scurrent foot-and-mouth epi-demic re-emphasizes thehealth and economic threatsposed by multi-species/globally transmitteddiseases. French noted onlyabout two dozen swine practi-tioners nationwide are certi-fied as veterinary “diplo-mates” equipped to consult oninternational livestock issues.

“Those guys are forever onairplanes to China, the (Unit-ed Kingdom), and SouthAmerica because of thedemand for their services,” hetold FarmWeek.

“Certainly, we have to do agood job locally to supply the(veterinary) need. But if welook to the future, it’s clearly aglobal economy that we’re try-ing to address.”

Illinois budget woes havecontributed to a reductionfrom 19 faculty members inthe vet college’s rural healthmanagement section to acurrent 5 1/2. Remainingfaculty have had to “farmout” many senior veterinarystudents to “externships” atpractices across the U.S.,French said.

Movement toward “com-panion” animal practice —even among farm kids — alsohas affected livestock veteri-nary innovation and commu-nications, he added.Researchers with “interestingcases” have fewer outletsavailable or willing to publish

AG DAY BASKET ASSEMBLY

Representatives of more than 700 FFA members from around the state assemble baskets of Illinoisproducts for state legislators last week in Springfield. Illinois ag organizations and businesses con-tributed a variety of products to remind lawmakers of the state’s No. 1 industry on Agriculture Legisla-tive Day. (Photo by Cyndi Cook)

Page 4: FarmWeek March 14 2011

FEEDING THE PLANET

Page 5 Monday, March 14, 2011 FarmWeek

Growing demand plus for ag, concern in developing worldBY DANIEL GRANTFarmWeek

The future for agriculture isbright due to growing demandfor food, according to analystsat the WILL Ag OutlookMeeting in Covington, Ind.last week.

The analysts generally pre-dicted commodity prices willremain high this year as farmersaround the world attempt torebuild feed and grain supplies.

“Corn and feed grains aretight around the world,” saidRoy Huckabay, principle ofthe Linn Group, a privatelyheld firm in Chicago that pro-vides commodity marketinformation, analysis, and riskmanagement. “This is not asituation we can grow out ofin one year.”

The situation is expected tokeep pressure on crop andlivestock prices.

It also is expected to resultin the largest food priceincrease since 2008.

The Food and AgriculturalPolicy Research Institute(FAPRI) at the University ofMissouri last week projectedU.S. food prices this year couldrise by an average of 4.2 per-cent after rising by less than 2percent last year.

“U.S. stocks of corn, soy-beans, and cotton are very lowrelative to use in 2010-11,”said Pat Westhoff, director of

FAPRI. “Tight supplies havecontributed to higher prices.”

However, demand has notslowed much due to higher pricesand it actually has increased forsome ag products in some areas,according to Jacquie Vocks, ana-lyst with Stewart Peterson

Group in Champaign.U.S. meat exports are

booming, ethanol productioncould set a record, and soybeanexports are expected to remainnear record levels this year.

“Until rationing begins, Idon’t think (the new-crop/old-crop corn spread) meansmuch,” Vocks said.

Dan Zwicker, analyst withADM Investor Group inDecatur, believes the cornmarket currently needs aboutanother 300 million bushels. Itwill find those bushels eitherthrough an early harvest or byrationing demand.

“This is this generation’sversion of the 1970s,” Zwickersaid. “It (the market) is sending

the signal we need increasedfood production.”

Tight food supplies maylead to higher prices in the U.S.But the real concern is indeveloping countries, particu-larly in sub-Saharan Africa andSouth Asia, according to theUnited Nations.

“North Africa always subsi-dized food prices. When (thegovernment) took those away,food prices went up. Then,when commodity prices rallied,food prices went up evenmore,” Huckabay said.

“When 40 percent or moreof your income is on food (indeveloping countries) and theprice goes up 15 percent,you’ve got a problem,” he con-tinued. “You no longer canafford to eat every day.”

U.S. consumers, by compar-ison, spend about 10 to 15 per-cent of their income on food.

Tom Fritz, founding mem-ber of the EFG Group inChicago — a commodityfutures trading service — pre-dicted the situation couldintensify this year.

“We’re looking at an explo-sion of food demand,” Fritzsaid. “And it’s only going to getbigger.

“Everybody is looking atwhat’s happening in the MiddleEast,” he added. “It (politicalunrest) didn’t start with oil, itstarted with food costs.”

Bean production projectedto set new record in Brazil

Soybean harvest in Brazil may be off to a slow start due torainy weather.

But, when the last beans eventually are picked this season,Brazilian farmers are expected to set a new soy production record.

USDA last week increased its bean production forecast forBrazil by 1.5 million tons (55.5 million bushels) to a record totalof 70 million tons (2.59 billion bushels).

“Timely rains in the southern producing areas raised yieldprospects,” USDA noted of soy production in Brazil.

And the trend of increased soy production in South Americacould continue as quality yields and strong soybean prices thisyear are expected to encourage future plantings.

“The soy area in Brazil is up 2.6 percent (compared to a year ago),”said Michael Cordonnier, agronomist with Soybean and Corn Advi-sor in Hinsdale, who travels extensively to South America. “At theseprices I expect it could go up another 3 percent” in the near future.

It takes higher futures prices to encourage more soybeanplantings in South America compared to the U.S. due to highertransportation costs and the exchange rate.

“Brazilian farmers see a much lower price than Americanfarmers because of the exchange rate,” Cordonnier said.

The situation hasn’t slowed the expansion of soy productionin some parts of South America. Brazilian farmers can grow 60-plus bushel soybeans in fields where Asian soybean rust is con-trolled, according to Cordonnier.

A recent report put together by a network of ag economistsnoted from 2000 to 2008 Brazil increased its soy production areaby 8 million acres (6 percent) while the soy production area inArgentina grew by 10 million acres (15 percent).

Cordonnier refuted reports claiming the soybean productionarea has grown in Brazil at the expense of the Amazon rain forest.“The Brazilian government is working hard to limit deforestation.They want to use degraded pasture for soy expansion,” he said.

But more land is being transitioned to production asdemand continues to grow for ag products.

“They’re not burning the Amazon to grow soybeans,” Cor-donnier said. “They’re clearing the Amazon for cattle.”

Overall, Cordonnier predicted South American soy productionthis year could total close to 126 million tons (4.6 billion bushels),which would be down about 5 million tons from last year due inpart to drought losses in Argentina. — Daniel Grant

Michael Cordonnier, right, agronomist and analyst with Soybeanand Corn Advisor of Hinsdale, discusses Brazilian soybean produc-tion potential with participants of the USDA Ag Outlook Forum lastmonth in Arlington, Va. Cordonnier predicted quality yields andhigh prices will encourage Brazilian farmers in the coming year toplant more soy acres. (Photo by Daniel Grant).

BY MARTIN ROSSFarmWeek

A global food/environmental analystargues a 100 million-ton global grain harvestincrease is necessary merely “to maintain therelatively precarious status quo” for a grow-ing, hungry world.

It also appears unlikely, according to LesterBrown, president of the Earth Policy Insti-tute.

Last year, combined world production ofcorn, wheat, and rice fell roughly 60 milliontons short of worldwide consumption, Brownreported. A drawdown in available stockscovered that shortfall, and with an added pro-jected 40 million-ton growth in demand, hesees a 100 million-ton, 5 percent productionboost as necessary in 2011.

A 150 million-ton increase would helprestore “normalcy” to the global market.

With irrigation offsetting global rainfallvariations, Brown projects a 10 million-tonbump-up in the rice harvest this year.

Most of the world’s wheat crop is fall-planted winter wheat grown in the NorthernHemisphere, which is beginning to green inmany locations. China is the largest producer:Recent rains and snowfall could aid recoveryfrom the country’s worst drought in decades,but Brown anticipates 110 million tons beingharvested in 2011, vs. 115 million tons lastyear.

India’s potential is brighter: He predicts amillion-ton increase to a total 82 million tons.

India will provide “the first look at the new har-vest” next month, Brown said.

USDA expects the U.S. harvest to dropfrom 60 million tons in 2010 to 56 milliontons this season, largely as a result of wide-spread drought.

Russia’s crop is much better than lastyear’s “severely depressed” crop, but it is“not exceptional.” Part of the country’shigher-yielding winter wheat was not plant-ed, though expected spring wheat plantingscould generate a net 18 million-ton increasefor 2011.

Brown calculates 20 million tons of addedwheat worldwide for 2011.

That leaves a potential 70 million-ton gapfor corn to fill. China is unlikely to boostcorn production this year, Brown said, but theU.S. could be good for 25 million added tonsand the remaining 40 percent of the world’sproducing nations could contribute another15 million.

Minor cereal grains may supply another 10million tons. That comes to only 80 milliontotal additional tons, and Brown anticipates ahike in the World Food Price Index in comingmonths.

“The lower-income countries are going tobe affected most by the higher prices,” hesaid.

“They consume commodities much moredirectly (than the U.S.). When commodityprices double, the price of their food risesdramatically.”

Coming up short?

What the world needs now ...

‘This is not a situ-a t i o n w e c a ng r o w o u t o f i none year.’

— Roy HuckabayLinn Group

Page 5: FarmWeek March 14 2011

G0VERNMENT

Page 3 Monday, March 14, 2011 FarmWeek

Greenhouse regs threaten domestic energy suppliersBY MARTIN ROSSFarmWeek

Producers and consumersalready facing the costs of aglobal oil price spike wouldfeel even greater economicpain under U.S. Environmen-tal Protection Agency (EPA)greenhouse gas (GHG) regu-lations, energy industryobservers warn.

EPA emissions regulationsand permitting would placeU.S. oil refineries at a majordisadvantage to foreign gaso-line suppliers, according toNational Petrochemical andRefiners Association (NPRA)President Charles Drevna.Under new regulations,Drevna warned, “there is noguarantee that the U.S.domestic refining manufac-turing base will continue to bein existence two or threedecades from now.”

The American Farm Bu-

“People have to realize thatenergy affects everything webuy — all the services, all thegoods we buy,” Urbanchuktold FarmWeek. “Peopledon’t realize that the impactof energy on food prices isgreater than any one individ-ual raw material. It has animplication for everything —processing, transportation,packaging.”

The petroleum industry isnot the only energy sectorconcerned about GHG regu-lations: Prospective EPA ruleswere a key concern at a recentNational Ethanol Conference.Steve Schleicher, vice presi-dent for industrial serviceswith the biofuels industry firmPinnacle Engineering, warnedpotential GHG permitting“encompasses a lot of plants.”

Last week, Upton said “youcould see gas prices jumpanother 30 cents or so” underGHG regs. “That’s not some-thing that we need as we try tomove into a recovery,” heargued.

AFBF regulatory specialistRick Krause noted strongHouse Republican support forhalting stationary source regu-lation, but told FarmWeek anumber of Democrats “prob-ably would support” reining inEPA, as well.

At the same time, EPA isextending the March 31reporting deadline for 2010greenhouse emissions fromlarge emitters and fuel suppli-ers — an initial stage in set-ting down new regulations.The agency reportedly needstime to develop a tool thatwould be used to facilitateonline reporting. EPA expectsto complete that work thissummer.

Shannon Broome, execu-tive director with the multi-industry coalition Air Permit-ting Forum, is guarded in heroptimism Congress would beable to totally put the brakeson the EPA. “We need tooperate as if we have to dealwith these rules,” she toldethanol producers.

reau Federation (AFBF) backsHouse and Senate bills aimedat preempting EPA stationarysource (non-tailpipe) GHGregulation. The Energy Tax

Prevention Act is spearheadedby House Energy and Com-merce Committee ChairmanFred Upton (R-Mich.), whileSen. Jim Inhofe (R-Okla.) issponsoring a Senate compan-ion piece.

U.S. refineries constitute

“one of the last international-ly competitive segments ofthe American manufacturingbase,” Drevna wrote EPAassistant administrator for air

and radiation Gina McCarthy.NPRA estimates U.S. refiner-ies process 95 percent of thegasoline, diesel, jet fuel, heat-ing oil, and lubricants used inthe U.S.

Regulatory concerns ariseat a time when, according toenergy consultant JohnUrbanchuk, the U.S. is partic-ularly vulnerable to “ourexposure to imported oil.”

Illinois congressmenchallenge EPA overreach

Increasingly stringent U.S. Environmental ProtectionAgency’s (EPA) actions “undermine our ability to continue tofeed the world’s growing population,” Central Illinois U.S. Rep.Aaron Schock argued following U.S. House Ag Committeequestioning of EPA Administrator Lisa Jackson last week.

Jackson told the panel EPA has worked to establish a dia-logue with the ag community. She proposed to reduce green-house gas emissions in a “responsible, careful manner,” notingcurrent exemption of ag sources from the rules.

EPA plans to release a memo to regional EPA offices clarify-ing that nitrogen and phosphorus pollution reduction is bestaddressed by the states, via proven conservation practices andother tools, she testified (see page 7). Jackson argued EPA doesnot support a “no-spray” drift policy, and reported EPA is onthe verge of finalizing a milk container exemption from oil spillprevention rules.

However, while she said “we have no plans” to expand farmdust regulation, Jackson stressed the federal Clean Air Act“mandates that the agency routinely review the science of vari-ous pollutants, including particulate matter (dust).”

Urbana Republican ag committee member Tim Johnson not-ed Jackson early in her tenure proposed to cancel her predeces-sor’s proposed dairy spill exemption. He cited previous agencyguidelines urging “zero tolerance” spray drift policies and regu-lation of coarse particulate matter from “routine agriculturaldust.”

EPA greenhouse rules amount to “a quasi cap-and-tradeact,” bypassing Congress, he said. “Your agency has, time aftertime after time, intruded on the legislative authority,” Johnsontold Jackson.

Schock, a Peoria Republican who has proposed blockingfunding for extended EPA review of atrazine, argued “theuncertainty and burdensome overreach” related to EPA “ismaking it very difficult for our farmers to do their job.”

“Proven farming techniques that are commonly used arenow in jeopardy because of the hijacking of the EPA,” he toldFarmWeek. “(That) will not only have a horrific economicimpact, but their decisions impact every farmer in Illinois.

“Many of their actions are tantamount to a bureaucraticassault on the ag community. For example, removing a productsuch as atrazine from the shelves would have an economicimpact exceeding $2 billion annually, which would be a severeblow to an already struggling economy.

“We all agree that it’s in everyone’s interest, including farm-ers, to have a safe product. Which is why the EPA has evaluatedthe pesticide numerous times in the past and time and timeagain has declared it safe for use.” — Martin Ross

Illinois may prove a key player in helpingrein in potentially costly new federal pesticideregulations.

Last week, the House Ag Committee unani-mously approved the Reducing RegulatoryBurdens Act, which aims to relieve producersof purportedly duplicative and unnecessaryU.S. Environmental Protection Agency (EPA)pesticide use permits.

The measure would amend the FederalInsecticide, Fungicide, Rodenticide Act

(FIFRA) and the Clean WaterAct (CWA) to eliminate arequired National PollutantDischarge Elimination Sys-tem (NPDES) permit forpesticides already approvedand labeled for use underFIFRA.

Under a 2009 ruling in thefederal court case NationalCotton Council v. EPA, pesti-

cide applicators would have to obtain a permitunder the CWA by April 9 or face fines of upto $37,500 per day per violation.

Ag Committee member Tim Johnson, anUrbana Republican and key co-sponsor of thebipartisan bill, argued “Congress never intendedto burden farmers with additional permitrequirements” beyond FIFRA.

American Farm Bureau Federation regu-latory specialist Don Parrish deemed thecommittee vote “huge,” but stressed “wehave to have a huge showing” of bipartisansupport this week in the House Trans-portation and Infrastructure Committee,which has primary jurisdiction over waterissues.

“We think we have the momentum; wethink we can get it done,” Parrish told

FarmWeek. “But it’s going to take a lot ofpeople working and members hearing backhome that this has to move in the House. Itbecomes harder in the Senate, but if weshow some really good momentum in theHouse, we’re going to make it in the Senate,too.

“Basically, (this bill) is putting things backto the way they’ve operated for almost 40years. You’re eliminating (federal) administra-tive burden; you’re saying you don’t needduplicative government over-sight in the use of pesti-cides.”

Parrish noted state regula-tory agencies have helped clar-ify pesticide/permit issuesfacing Congress and EPA,highlighting efforts by IllinoisEnvironmental ProtectionAgency Water Pollution Con-trol Bureau chief Marcia Wil-hite.

He emphasized the importance of supportnot only from lawmakers who sit on both Agand Transportation and Infrastructure com-mittees but also by Transportation and Infra-structure members such as Belleville Democ-rat Rep. Jerry Costello, a co-sponsor of theReducing Regulatory Burdens Act.

But Parrish believes support for the mea-sure is “broader than agriculture.” Initial pes-ticides targeted for permitting include chemi-cals used by communities to control mosqui-toes and other public health threats.

“If those guys are afraid to use pesti-cides to protect human health and safety,that’s going to have a ripple effect through-out the economy,” Parrish said. — MartinRoss

Ag Committee votesto head off permits

‘People have to realize that en-ergy affects everything we buy— all the services, all the goodswe buy.’

— John UrbanchukEnergy industry analyst

Rep. Tim Johnson Rep. JerryCostello

Page 6: FarmWeek March 14 2011

PRODUCTION

FarmWeek Page 6 Monday, March 14, 2011

BY DANIEL GRANTFarmWeek

USDA last week in its crop supply-demandreport made few changes to the balance sheetfor soybeans and feed grains.

It did, however, lower the marketing yearaverage farm price estimates by a dime for cornand soybeans.

The current marketingyear farm price estimatesare $5.15 to $5.65 perbushel for corn and$11.20 to $12.10 perbushel for beans. Theaverage wheat price esti-mate was left unchangedfrom a month ago at$5.60 to $5.80 per bushel.

“It’s hard not to bevery bullish,” said ScottShellady, market analystwith XFA Futures, duringa teleconference hosted bythe CME Group. “But westill could see all three markets come off a bit.”

USDA last week lowered U.S. wheat exportsby 25 million bushels, which subsequentlyboosted ending stocks by the same amount.

Elsewhere, USDA increased global wheat sup-plies by 1.9 million tons (about 70 million bushels)due to higher production around the world.

“There is plenty of wheat around the worldright now,” said Terry Roggensack, of theHightower Report, who noted dryness remains

an issue in some wheat growing areas of theU.S. “But there still is potential for weatherissues in the wheat market.”

Both analysts said last week’s report was“neutral” and that crop prices generally areexpected to remain higher than average.

The focus now is on the prospective plantingsand stocks reports at the end of this month

along with plantingweather.

“The longer-termtrend of higher con-sumption will be a favor-able factor (for commod-ity prices),” Roggensacksaid. “We need a hugeincrease in (corn) acresand high yields or we’llbe in another tight situa-tion in the coming year.”

Shellady said the threebiggest worries fortraders is political unrestaround the world, rising

oil prices that last week reached a 29-monthhigh, and weather for the planting season.

Accuweather.com’s long-range forecast lastweek projected the active weather pattern willcontinue through at least early April. Some ofthe storms could be followed by more shots ofcold air in the Midwest.

Meanwhile, drought conditions in westTexas and the interior Southwest were project-ed to worsen this spring.

USDA tightens crop price estimates

‘There is plenty of wheata round the wor ld r igh tnow. But there still is po-tential for weather issuesin the wheat market. ’

— Terry RoggensackThe Hightower Report

Producers advised to protectagainst downside risk

Farmers undoubtedly are excited about the run-up in com-modity prices since last fall.

But they shouldn’t allow the euphoria of corn and wheatfutures near or above $7, $13-plus beans, and cattle prices above$100 be a distraction from much-needed marketing plans.

In fact, farm marketing plans may be more important thanever before as the amount of risk in farming has risen along withcrop and energy prices, according to analysts last week at theWILL Ag Outlook Meeting in Covington, Ind.

“At these price levels, our riskis to the downside,” said CurtKimmel, analyst with BatesCommodities in Bloomington.“You need to protect the down-side and put a floor under you.”

Analysts at the meeting advisedfarmers to protect at least 80 percent of their crops with federal cropinsurance, use options for protection and flexibility, and sell remain-ing old crops at profitable levels offered recently by the market.

Farmers also were advised to develop marketing plans, if theydon’t have one already, and stick to those plans.

“When I first got in this business (about 30 years ago) a produc-er’s job was about 70 percent growing the crop and 30 percent mar-keting,” said Tom Fritz, founding member of EFG Group in Chica-go, a commodity futures trading service. “Now, about 30 percent (ofa farmer’s job) is growing the crop and 70 percent is marketing.”

Volatility, driven by everything from production swings andenergy prices to record-high outside investments in commodities,has increased in the markets in recent years and likely will contin-ue, according to Roy Huckabay, of Linn Group in Chicago.

“The range in corn price (swings in recent years) has been $4,”Huckabay said. “The range in corn in 2003 was about 40 cents.That’s the type of volatility we’re dealing with now.”

Oil prices last week surged to a 29-month high of $105 per barrel.Higher oil/energy prices could support increased ethanol productionbut the energy situation also is a negative to ag as a key contributor toprojected record-high production costs this year. Meanwhile, variousfunds have invested about $650 billion in commodities but some ofthat reportedly has been moving into the energy markets.

“The funds do make the market more volatile as they movemuch larger volumes,” said Wayne Nelson, analyst with L and MCommodities in New Market, Ind. “And we’ve seen some(funds) aligning with the situation abroad. If we have moreunrest in the Middle East, it will have a greater tendency toinflate energies rather than grains.”

So what should farmers do to protect themselves from all thevolatility? They should know their costs, protect price ranges oftheir commodities, figure out what price levels are profitable ontheir farms, and stick to their marketing plans.

“Demand for your crops will continue to go up and up. That’swhy marketing is so important,” Fritz said told farmers. “There’san old expression (in grain trading) that you should ‘plan thetrade and trade the plan.” — Daniel Grant

FarmWeekNow.comFor additional information fromthe WILL Ag Outlook meeting,go to FarmWeekNow.com.

AG DAY DIRECTIONS

Jim Craft, left, Illinois FFA executive secretary, gives directions toFFA members who helped with Agriculture Legislative Day activi-ties last week in Springfield. Looking on are Illinois State FFA offi-cers, left to right, Vice President Jake Ekstrand, Secretary CodyGill, and Treasurer Jeffrey Barnes. (Photo by Cyndi Cook)

Page 7: FarmWeek March 14 2011

CONSERVATION

Page 7 Monday, March 14, 2011 FarmWeek

‘Principles,’ direction of conservation policy debatedBY MARTIN ROSSFarmWeek

Participants in a RockIsland forum echoed SenateAg Chairman DebbieStabenow’s (D-Mich.) recentcall to emphasize “principles,not programs,” in designing —and funding — conservationprovisions for the next farmbill.

At a USDA NaturalResources Conservation Ser-vice (NRCS) forum co-spon-sored by the Farm Forum andAmerican Farmland Trust,both producers and environ-mental interests stressed theneed to focus more on water-shed-based stewardship initia-tives with identifiable andmeasurable outcomes.

Rather than mulling specificinitiatives such as the Conser-vation Reserve Program, par-ticipants addressed broadareas: water security, climate,and landscape integrity issuesranging from wildlife habitatto ag-urban interaction.

willing to pay for.”Cox nonetheless is wary of

blanket regulatory approachessuch as regional nutrient man-agement requirements, arguing“a much more targetedapproach” to addressing a fewparticularly damaging farm prac-tices would yield greater results.“The one size-fits-all stuff ’s notgoing to do it anymore,” Iowaproducer and forum speakerRobert Ballou said.

Ballou touted the value of“organized initiatives” betweenproducers and “an integratedportfolio of solutions” acrossthe rural resource base. NorthDakota State Universityagribusiness specialist DavidSaxowsky believes the farm billcan best serve future watersecurity needs by providing theflexibility for states to tailorwatershed protections.

Amid increasingly competi-tive demand for waterresources, the lawyer and econ-omist argued “state laws reallydrive water law, not federallaw.” For example, irrigation isone of the major water uses inthe Western states, and he saidstate agencies may be in a bet-ter position to coordinate irri-gation and conservation prac-tices.

Saxowsky deems evolvingtechnology crucial to helpingfarmers use water more effi-ciently, and urges greater farmbill research funding and tech-nical support. “Then the law

needs to urge people to adoptthose technologies,” he said.

Ballou meanwhile chal-lenged the notion that “thebest management practices areknown,” and maintainedgreater conservation data col-lection is necessary to helpproducers “gain confidence intheir strategies.”

At the same time, FarmFoundation Vice PresidentSheldon Jones stressed theneed for the farm bill to aidfarm “adaptability to climatechange.” With anticipation oflonger frost-free seasons withfewer suitable growing degreedays and precipitation extremesin the Midwest, Iowa FarmBureau Federation’s DavidMiller sees the need for “subtleshifts in management,” espe-cially in river bottom areas.

But as policymakers mullnew farm bill conservationpriorities, Jones notes evensome effective existing pro-grams operate outside theestablished ag budget “base-line” and thus may be “at-risk”in 2012.

And Miller punctuated thedual focus of ag conservationprograms in preserving theenvironment and economicfarm productivity. Advancedpractices and increased landretirement at some point“come out of profits,” he said.

“The market doesn’t payme to get less production,”Miller told forum participants.

They varied largely over thedegree to which the carrot orthe stick should be employedin ensuring ag stewardship.

With federal funds tighten-ing, the Environmental Work-ing Group (EWG) has height-ened efforts to direct addedresources toward the farm billconservation title. EWG’s CraigCox sees “an epidemic of gullyerosion across the Corn Belt”he attributes it largely to a high-er frequency of severe stormsand “the pressure to go all out”in boosting production.

Cox noted “very traditionalconservation practices” —from reduced tillage to grassedwaterways — can greatlyreduce gully erosion, especiallyin tandem. But where IllinoisFarm Bureau supports funda-mentally incentive-based con-servation, he said incentivesmay not be enough given “thepressure we’re putting on ouragricultural land” amid highcrop prices, biofuels demand,and increased farmland leasing.

“Especially given the chron-ically underfunded nature ofvoluntary programs, I thinkthe expectation that we cansolve these problems primarilywith voluntary programs is justnot going to get us there,” Coxtold FarmWeek.

“The question we have to

ask is, ‘what’s the division oflabor between the landowner,the farmer, and the taxpayer?’There are some things we thinkfarmers need to do basically asa responsibility that comes withtheir property rights, and otherthings taxpayers ought to be

While he acknowledgeslikely climatic changes facingproducers in decades ahead,Iowa Farm Bureau economistDavid Miller questions howputting the heat on agriculturewill address slippery globalconcerns.

As lawmakers eye new farmbill conservation goals, Millerargues climate adaptation, notgreenhouse emissions “mitiga-tion,” is the proper focus offederal efforts.

Miller, whose group hasplayed a leading role in carbonmarket development, calls theHouse’s 2009 push for carboncap-and-trade mandates“probably one of the biggestpolitical blunders ever made inclimate policy in this country.”In the wake of that debacle, “Isuspect it will be a decadebefore we have climate poli-cy,” he said.

Meanwhile, voluntary envi-ronmental markets “haveallowed us to learn an awfullot,” including doubts aboutthe potential “buy side” ofcarbon trading, Miller said.

“The political uncertaintiesout there killed a fledglingmarket,” he charged. “Youcannot sustain environmentalmarkets through the sell sidealone.”

Miller accepts climatechange but “in reality, climateis always changing,” and hesaid any approach to regulat-ing change must be reasoned

and effective. Key is whetherthe focus is on strict emissions(a la cap-and-trade) or onresource management.

U.S. corn nitrogen use hasheld steady over the past 25years, but Miller stressed “we’regetting a whole lot morebushels out of it.” With theworld “screaming for morecalories, more protein,” Millerfears U.S. regulations that limitfarm practices or nutrient orfuel use could push productionto less-efficient nations like Chi-na.

China on average uses 20more pounds of nitrogen peracre than the U.S., with yieldresponse but “no greater(nitrogen) efficiency.” GivenChina’s reliance on coal powerand thus heavier greenhouseemissions, he questionedwhether U.S. emissions capswould affect global climatechange.

“The world’s not better offif that’s what we do,” Millerwarned. “A lot of what we doin adaptation has mitigationpositives. The fact that we’remuch more efficient in nitro-gen utilization is part of anadaptation technique, becauseit helps profitability when I’mspending $600 a ton for anhy-drous. It’s also part of my mit-igation strategy.

“I get mitigation out offuel efficiency, adoption ofno-till. The adoption ofalmost every practice that’s

good for adaptation will havea mitigation benefit to it. Thereverse is not necessarily true:I can mitigate by just produc-ing less, but that’s not goodadaptation.” — Martin Ross

Adaptation, not mitigation,ideal farm climate approach

‘ T h e m a r k e tdoesn’ t pay meto get less pro-duction.’

— David MillerIowa Farm Bureau

Page 8: FarmWeek March 14 2011

ACES

FarmWeek Page 8 Monday, March 14, 2011

Continued from page 1by a C-FAR task force.

• The Senate Ag Committee also passed Frerich’s SB 2010 thatwould replace the existing Fertilizer Research and Education Coun-cil with a similar program overseen by the Nutrient Research Edu-cation Council. The legislation seeks to prevent money raised fromfertilizer fees being used by the state for other purposes.

The bill also changes and increases fees on the fertilizer industry tofund the IDOA’s Bureau of Agriculture Products Inspection programto ensure proper fertilizer registration and distribution licenses, qualitycontrol, inspection of anhydrous ammonia storage tanks and nursetanks, and industry training. IFB supports the legislation as amended.

• An IFB legislative initiative, SB 1841 has been assigned to theSenate Environment Committee. Sponsored by Sen. Linda Holmes(D-Aurora), the bill directs the Illinois Environmental ProtectionAgency (IEPA) to serve entities notices of alleged violations within90 days rather than 180 days after it receives a complaint. The billalso would prohibit IEPA from disclosing investigative informationuntil it has served the alleged violator with a violation notice.

• The Senate Ag Committee has passed SB 1852, sponsored bySen. David Luechtefeld (R-Okawville). The bill would form a farmers’market task force to help the state agriculture director enact statewideadministration regulations for farmers’ markets. IFB supports the bill.

• IFB opposes HB 307, sponsored by Rep. Michael Tryon (R-Crys-tal Lake), which is in the House Agriculture and Conservation Com-mittee. The bill would allow an individual or entity to block or destroydrainage tile on his property after a licensed hydrological engineer orprofessional with similar qualifications determines that action wouldnot negatively impact water runoff in the drainage district.

• IFB also opposes Tryon’s HB 307 that is assigned to the HouseCounties and Township Committee. The bill would allow any countyboard to regulate –- for public health purposes — operations withmore than two livestock animals on property of three acres or less andthe animals are located within 500 feet of any neighbor’s residence.

• Another IFB proposal, HB 1868 has been assigned to theHouse Environment and Energy Committee. The bill, sponsoredby Rep. Robert Pritchard (R-Hinckley), would establish a trust fundand money to remove abandoned wind energy farms. The ownerof a wind energy facility would have to deposit and maintain a let-ter of credit with IDOA until the facility has been removed.

If an individual proves a wind farm has been abandoned,IDOA would request payment and put the money into a WindEnergy Deconstruction Fund Trust Account. IDOA also wouldlevy an annual fee on commercial wind energy owners who aregenerating wind energy in the state.

Leaders

U of I partner in $9.6 million grant for India food security project

The University of Illinois College of Agricul-tural, Consumer, and Environmental Sciences(ACES) along with other university and privatesector partners has received a $9.6 million grantfrom the U.S. Agency for International Develop-ment (USAID) to address food security in India.

The five-year project will involve the U of IACES, Cornell University, the University of Geor-gia, Ohio State University, Tuskegee University,the University of California-Davis, John Deere,Tata Chemicals Ltd., and Sathguru ManagementConsultants.

The group will work with Banaras Hindu Uni-versity to increase agricultural production andfood security in northern India. The AgriculturalInnovation Partnership is being launched by Indiaand USAID under “Feed the Future,” the U.S.government’s global hunger and food security ini-tiative.

“We are pleased that this AIP project has beenselected for funding by USAID-India, as the U ofI has had a long history of capacity building inagricultural higher education in India,” saidSchuyler Korban, director of ACES Office ofInternational Programs.

“As part of the strategic partnership betweenthe United States and India, both countries haveagreed to intensify our collaboration to increaseagricultural production, develop efficient market-ing systems, and reduce malnutrition for a sustain-able and inclusive Evergreen Revolution,” said

Gary Robbins, USAID-India director of foodsecurity.

The consortium will strengthen the capacity ofstate agricultural universities by revising universitycurricula to include important issues, such as mar-ket-led demand and the potential impact of cli-mate change on agriculture.

The consortium also will develop and pilotinnovative Extension models to improve theexpertise of agricultural graduates in their provi-sion of management and agri-technology supportto farmers.

“This is a wonderful opportunity for our Illi-nois faculty to be actively involved in this project,”said Prasanta Kalita, the U of I’s lead facultymember on the project.

“Our main involvement will be to help developnew-generation academic curriculum for BanarasHindu University that will be transferred to othersimilar universities in India while actively engagingin research and Extension initiatives for managingand utilizing natural resources, and providingguidance in establishing a center for teachingexcellence,” said Kalita.

More than half a century ago, the U of I begana long-standing educational partnership with Pant-nagar University in India, creating the land-grantmodel in India. Most recently, members of U ofI’s ACES Global Academy took part in a 14-dayexperience in India to study the food value chainsystems there.

Agriculture leaders from across the state had a full plate of issues to discusswith lawmakers last week during the Agriculture Legislative breakfast inSpringfield. Above, State Rep. David Reis (R-Willow Hill), second from left,chats with Illinois Farm Bureau directors, left to right, Chris Hausman, Jim An-derson, and Richard Ochs. Below, Lt. Gov. Sheila Simon, second from left,discusses ag issues with representatives of the Extension Partners, left to right,Jerry Hicks, Jeanne Harland, and Pam Weber. (Photos by Kay Shipman)

Page 9: FarmWeek March 14 2011

BROADBAND

Page 9 Monday, March 14, 2011 FarmWeek

Illinois moves forward with broadband map, projectsBY KAY SHIPMANFarmWeek

Illinois’ efforts to expandhigh-speed Internet continuewith a new map of broad-band services and progresson federally funded Internetprojects, members of theIllinois Broadband Deploy-ment Council learned lastweek.

The first phase of aninteractive broadband maprecently was posted at{www.broadbandillinois.org},said Drew Clark of Partner-ship for a Connected Illinois.

An individual may see alisting of all the Internet ser-vice providers and the types

made on broadband infra-structure projects across thestate.

Construction crews laidnew fiber-optic cable lastweek as part of a project inNorthwestern Illinois, saidJohn Lewis with NorthernIllinois University. Lewisadded environmental assess-ments were submitted for asecond broadband projectin the region and said hewas optimistic that con-struction would start nextmonth.

Construction was to start“within days” on a broad-band project that will cover23 Southern Illinois counties,

according to Scott Riggs withClearwave Communication.

To keep people informedabout the project’s progress, awebsite has been developed at{http://clearwavebroadband.com}. Additional informationis being posted on Facebookand Twitter, Riggs noted.

Updates on a 55-countyCentral Illinois broadbandproject are available onlineat {www.illinois.net}, saidLori Sorenson with IllinoisCentury Network. Environ-mental statements weresubmitted in January, andSorenson said she hopesproject construction startssoon.

of services they offer for thatarea by simply clicking onany online map location. The

map location also lists thebroadband community cen-ters, such as schools,libraries, and hospitals.

“This is just the beginningof what we’ve been able to

do so far,” Clark told councilmembers.

Clark encouraged people

to provide online feedbackabout the types of Internetinformation that would behelpful and could be addedto the online map.

Progress also is being

‘Th is is just the beginning of whatwe’ve been able to do so far.’

— Drew ClarkPartnership for a Connected Illinois

USDA announces $25 million in community broadband grantsThe nation’s rural commu-

nities without access to high-speed Internet may apply for$25 million in grants throughUSDA Rural Development,

the head ofUSDA RuralUtilities Ser-viceannounced.

USDA ismaking anadditional$25 millionavailable incommunity

connect grants as part of theObama administration’s eco-

Internet access for two years. Some potential applicants

questioned USDA’s rule thata project is ineligible if a sin-gle person living within aproject area can access Inter-net.

“The entire (project) ser-vice area must be unserved,”

Adelstein said. USDA wantsto encourage applicants toexpand Internet service intoareas without any services, headded.

The application deadline isMay 3 and USDA hopes toaward funding by Sept. 30.— Kay Shipman

nomic development plan tohelp rural areas, JonathanAdelstein told reporters dur-ing a national teleconference.

“The next Steve Jobs maybe in a rural community thatdoesn’t have broadbandtoday,” Adelstein said.

Aneesh Chopra, chieftechnology officer with theWhite House Office of Sci-ence and Technology Policy,said the administration viewsInternet funding as aninvestment in innovation anda building block for thefuture.

With Internet access,

entrepreneurs and innovators“could live in any community— rural or urban,” Chopratold reporters.

Grant applicants mustcontribute 50 percent match-ing funds and establish acommunity center that pro-vides the public with free

Jonathan Adelstein

Page 10: FarmWeek March 14 2011

FarmWeek Page 10 Monday, March 14, 2011

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Page 11: FarmWeek March 14 2011

EDUCATION

Page 11 Monday, March 14, 2011 FarmWeek

Auction CalendarMon., Mar. 14. 10 a.m. Coles Co.

Real Estate. Irvin Von Lanken Estate,CHARLESTON, IL. Stanfield Auction

Co. www.stanfieldauction.comTues., Mar. 15. 9:30 a.m. Farmmachinery. Kampen Farms, BAI-

LEYVILLE, IL. Gehling Auction Inc.www.gehlingauction.com

Tues., Mar. 15. 10:30 a.m. 80 Ac.Warren Co. Reva E. Hinderliter,

ALEXIS, IL. Gregory Real Estate &Auction LLC.

Wed., Mar. 16. 10 a.m. Farm Auction.George J. and Patricia Fleck Farm,SHERMAN, IL. Mike Maske Auction

Service.Thurs., Mar. 17. 10 a.m.

Consignment Auction. GIBSON CITY,IL. Bill Kruse, Auctioneer. bil-

lkruse.netThurs., Mar. 17. 9 a.m. Farm

Machinery Consignment Auction.CARTHAGE, IL. Sullivan & Son

Auction LLC.www.sullivansonauction.com

Thurs., Mar. 17. 10:30 a.m.Farmland Auction. Keith A.

Richardson, NEW WINDSOR, IL.Gregory Real Estate and Auction

LLC. biddersandbuyers.comFri., Mar. 18. 8:30 a.m. Consignment

Auction. HAMEL, IL. Ahrens andNiemeier. www.a- nauctions.com

Fri., Mar. 18. 10 a.m. and Sat., Mar.19. 9:30 a.m. Estate Auction. RobertGayman Estate, ROSEVILLE, IL. Van

Adkisson Auction Service, LLC.www.biddersandbuyers.com

Fri., Mar. 18. and Sat., Mar. 19. 8:30a.m. both days. Consignment

Auction. ANNAWAN, IL. Hatzer andNordstrom Eq. Co.

www.whatzernordstromauction.comSat., Mar. 19. 9 a.m. Annual Spring

Auction. EDINBURG, IL. Cory Craig,Auctioneer.

Sat., Mar. 19. 9:30 a.m.Consignment Auction. JACK-

SONVILLE, IL. Larry Derricks andHank Pool, Auctioneers.

www.joyceauctions.comSat., Mar. 19. 10 a.m. Farm machin-

ery. Doug and Mary Jo Coartney,ASHMORE, IL. Stanfield Auction Co.

www.stanfieldauction.comSat., Mar. 19. 9 a.m. Large Multi-Farmer Auction. OKAWVILLE, IL.

Riechmann Bros., LLC.www.riechmannauction.com,www.topauctions24-7.com orwww.biddersandbuyers.com

Sat., Mar. 19. 9 a.m. ConsignmentAuction. Leland Lions Club. LELAND,

IL. www.lelandlionsclub.comMon., Mar. 21. 9:30 a.m. Machinery

Auction. TAYLORVILLE, IL.Micenheimer Auction Service.

www.micenheimer.comTues., Mar. 22. 9:30 a.m.

Consignment Auction. OREGON, IL.Northwest Eq.

Tues., Mar. 22. 1 p.m. Land Auction.Murray Wise Associates LLC. mur-

raywiseassociates.comTues., Mar. 22. 10 a.m. Public LandAuction. Trinity Community Church,

FARMER CITY, IL. Haycraft AuctionCo. www.haycraftauctions.com

Fri., Mar. 25. 10 a.m. Land AuctionBureau Co. Herbert Bialas, ORIN, IL.

Espe Auctioneering.www.espeauctions.com

Sat, Mar. 26. 9 a.m. Farm eq. andmore. ALTAMONT, IL. Stuckemeyer

Auction/Realty.www.stuckemeyerauction.com

Sat., Mar. 26. 8 a.m. ConsignmentAuction. CANTON, IL. Rt. 9 Auction

Inc. www.laffertyauction.com

Sat., Mar. 26. 10 a .m. Farm machin-ery. Gramley Grain Farms, LLC,

ELBURN, IL. Espe Auctioneering.www.espeauctions.com

Sat., Mar. 26. 9 a.m. Land AuctionDeWitt Co. Heritage Farms LLC,

WAPELLA, IL. Haycraft Auction Co.Inc. www.hbtagservices.com or

www.haycraftauctions.comSat., Mar. 26. 9 a.m. Consignment

Auction. LAWRENCEVILLE, IL. GroffEq.

Mon., Mar. 28. 10 a.m. Edgar Co.Land Auction. Larry and Scott

Soberg, PARIS, IL. Moss AuctionTeam. www.mossauctionteam.comMon., Mar. 28. 2 p.m. Land AuctionHancock Co. The Leo Markin Trust

and the Ann Markin Estate,CARTHAGE, IL. Sullivan

Auctioneers, LLC.www.sullivanauctioneers.com

Tues., Mar. 29. 10 a.m. LandAuction. Duane and Darrel Seim,

PAXTON, IL. Bill Kruse, Auctioneer. Wed., Mar. 30. 9:30 a.m.

Consignment Auction. ALBERS, IL.Mark Krause Auction Service.www.krauszauctions.com

Wed., Mar. 30. 11 a.m. Land Auction.Gary and Jeff Schone, BLUFFS, IL.

Rahe Appraisal and Auctioneer.Thurs., Mar. 31. 4 p.m. Crawford Co.

Land Auction. Martha Rodrick,CHAUNCEY, IL. Gregg Parrott,

Auctioneer. www.sellafarm.comFri., Apr. 2. 10 a.m. Land Auction

Champaign Co. Ruben Bidner,MAHOMET, IL. Gordon Hannagan

Auction Co. www.gordyvilleusa.comSat., Apr. 16. 9 a.m. Consignment

Auction. Nite Eq., PECATONICA, IL.Jim Sacia, Dan Powers, Lenny

Bryson and Cal Kaufman,Auctioneers. www.niteequip.com

SIU College of AgriculturalSciences sets Ag Industry Days

Southern Illinois University (SIU) College ofAgricultural Sciences will hold its seventh annu-al Agriculture Industry Days April 14-16 on theCarbondale campus.

The three-day event provides opportunity forprospective students and their families to tourthe campus and research farms and discuss agri-culture programs with faculty and students.Other visitors may see a variety of exhibits andparticipate in educational demonstrations. Inaddition, the college will host FFA judgingcompetitions.

Visitors may tour the green roof project atthe Agriculture Building April 14 from 10 a.m.to 2 p.m. The project includes a rooftop veg-etable research garden.

Exhibits open at 8 a.m. on April 15 followedby competitions in horticulture, livestock, anddairy. Awards will be presented at 1 p.m.

Activities for visitors of all ages will startat 8 a.m. on April 16. Topics covered willinclude landscape design and global informa-tion systems. Demonstrations will be offeredon forestry, animal care, and beef ultra-sounds. Visitors may participate in a guidedhike.

At 11:30 a.m., Chancellor Rita Cheng willgive the keynote address, followed by a mealdonated by Illinois beef and pork producers.

For more information, go online to{www.coas.siu.edu} or call the college at 618-453-2469.

Illinois Pork Producersand Illinois PurebredSwine Council — The Illi-nois Pork Producers Asso-ciation (IPPA) and the Illi-nois Purebred Swine Coun-cil have $15,500 in scholar-ships for young people inthe pork industry who willbe enrolled in college in fall2011.

The application deadlineis April 1.

Scholarships availableare: three gold scholarshipsof $2,000 each; three silverscholarships of $1,500each; and three bronzescholarships of $1,000each. The funding is madeavailable through the Kep-py Foundation.

Eligible applicants musteither be enrolled in anundergraduate program orwill enroll by fall 2011.Applicants must be pursu-ing any undergraduatedegree at any two-year orfour-year college.

An applicant must submita completed applicationform, transcripts, a list ofactivities, and an essay onhow the pork industry haspositively influenced his orher life.

In addition, the IllinoisPurebred Swine Councilwill award four Ryan andFriends Scholarships of$500 each.

Eligible applicants mustattend a university, college, or

Agriculture scholarship digestcommunity college in fall2011. Applicants also musthave been a 4-H or FFA mem-ber.

Applicants must submita completed applicationform, transcripts, list ofachievements and activities,statement of financialneed, and an essay on whythey want a career in pro-duction agriculture.

For more information or anapplication, go online to{www.ilpork.com} or call theIPPA office at 217-529-3100.

March 15 Illinois State University Ag Awareness Day, 9 a.m. to 4 p.m.on the quad east of Schroeder Hall on the Normal campus.Activities include display of farm equipment.

March 15-16Illinois Land Values Conference, Parke Hotel and Confer-ence Center, Bloomington. For conference registrationinformation, call 262-253-6902. Hotel reservations can bemade by calling the Parke Hotel at 309-662-4300.

March 18Western Illinois University beef evaluation station perfor-mance tested bull sale, starting at 7 p.m., WIU LivestockCenter, Macomb. For information or a sale catalog, contactthe School of Agriculture at 309-298-1080.

April 2Illinois/Wisconsin Bi-State Horse Workshop 8 a.m. to 2:15p.m. at the Kenosha County Center, Bristol, Wis. Early reg-istration deadline March 28. To register or for information,contact University of Illinois Lake County Extension,Grayslake, at 847-223-8627 or go online to{http://web.extension.uiuc.edu/lake/}.

DATEBOOK

Page 12: FarmWeek March 14 2011

AG WEEK

FarmWeek Page 12 Monday, March 14, 2011

National Ag Week isbeing celebrated thisweek. Following are someof the many ways countyFarm Bureau membersplan to celebrate the week.

COOK — The CookCounty Farm Bureau

Foundation and Chicago HighSchool for Ag Sciences’ FFAwill sponsor its High 5 Illinois!Ag Day event Friday for thirdgrade students to learn aboutIllinois’ top agricultural prod-ucts. The event will be held atthe Chicago High School forAg Sciences (111th &Pulaski). Approximately 400third grade students will rotatethrough different stationswhere each presenter willfocus on a major agriculturalproduct such as corn, soy-beans, and hogs.

CUMBERLAND —The Women’s Commit-

tee will sponsor a coloringcontest for children ages 3-11.Coloring sheets can be pickedup at the Farm Bureau office,local banks, and post offices.Deadline to return the sheetsto the Farm Bureau office isMarch 30.

• The Women’s Committeewill sponsor a photo contestfor children ages 12 and older.The categories are “Natureand Landscape”“Animals,”and “Farm-Related.” Entriesmust be a framed 4x6 color orblack and white photo andhave been taken in Cumber-land County within the lastthree years. One entry per cat-egory per person. Entriesmust be received at the FarmBureau office by March 30.

• Ag Week informationaltable tents and “Ag in the Eyeof a Student” placemats willbe placed in participatingrestaurants. The placematswere colored by CumberlandElementary students.

DEKALB — Babiesborn during National

Ag Week will receive specialgift baskets at two local hospi-tals. The gift baskets are filledwith an assortment of ag-related items, compliments oflocal farmers, the DeKalbCounty Farm Bureau, pork,beef, corn and soybeangroups. Additionally, snackbaskets filled with corn andsoybean snacks and ag factsare provided for hospitalemployees to enjoy during theweek. Farm Bureau will donateag-related books to schoollibraries.

DOUGLAS — AgWeek appreciation

breakfasts will be at 7 a.m. atthe following dates and loca-tions: Tuesday, Deb’s Café,Villa Grove; Wednesday, R&I,Arthur; Thursday, CountryJunction, Newman; and Friday,Dutch Kitchen, Arcola. Fillout a brief survey and break-fast is free. Call the Farm

a baby basket filled with agri-cultural items to the first babyborn in Knox County duringNational Ag Week.

• Farm Bureau will sponsorthe Chamber of Commerce’s“Galesburg On the Go”breakfast Wednesday and willgive a presentation during themeal.

• The Young Farmers willdonate grain bin rescue tubesto five fire departments inKnox County. They also areproviding two training ses-sions Saturday to the depart-ments on how to properly usethe tubes as part of NationalAg Week.

LASALLE — TheYoung Leaders Com-

mittee will sponsor a fourthgrade coloring contest. Thewinner will receive a “FarmingOur American Heritage”sweatshirt and an ice creamparty for his or her class.

• The Membership Com-mittee worked with businessesthat have joined the local dis-count program to offer a spe-cial Ag Week discount. For acomplete description of thediscounts offered, visit thewebsite {www.lasallecfb.org},see the March 7 edition ofAgriSource, or call the officeat 433-0371.

• The Membership Com-mittee will donate agricultural-related books to area libraries.

LEE — The Public Rela-tions Committee will

sponsor the annual Farmer’sShare Breakfast from 8 to 11a.m. Saturday at the LovelandCommunity Building, Dixon.The cost for a sausage andpancake breakfast is 50 cents,representing the actual amountof income a farmer willreceive from the breakfast.

• The Young Leader Com-mittee will donate the book“Farmer George Plants aNation” by Peggy Thomas toLee County public libraries.

LIVINGSTON — Aspoof of “Are you

Smarter than a Fifth Grader?”will be part of the PontiacArea Chamber of Commerceand Livingston County FarmBureau sponsored Issues andEggs Breakfast. KevinDaugherty, Illinois FarmBureau education director, willconduct the “Are You SmartEnough to Farm?” game showat 7:30 a.m. Tuesday at thePontiac Elks Country Club.

• The Women’s Committeedonated two agricultural-relat-ed children’s books to 20grade school libraries in thecounty.

• More than 2,500 parish-ioners had an agriculturalinsert in their church bulletins.

• Nearly 240 students par-ticipated in a poster contest tofind a design for a placematwith the theme, “Agricultureand Me.” The winning posters

were made into 8,500 place-mats, which were distributedto area restaurants during AgWeek.

• Farm Bureau will host adaily question about agricul-ture on WJEZ 98.9 radio sta-tion. Each day the winningcaller will receive a $25 FS gascard, compliments of Ever-green FS.

• The Young Leaders “Wel-come to the Ag World” babygift bags will be given to thefirst 25 babies born at OSF St.James Hospital during March.Some items each bundle con-tains are baby powder withcorn starch, oatmeal cerealwith oatmeal and soy oil, andchicken and turkey baby food.

• A “One Farmer Feeds 155People” display will be on theFarm Bureau office lawn. TheYoung Leaders and the sixFFA chapters in the countycreated a yard display of 155plywood “people” to visuallyrepresent the number of peo-ple each farmer feeds. Eachchapter painted their “people”their school colors. A 3’ x 6’banner stating “One FarmFeeds 155 People” was postedas well.

MCDONOUGH —The books “Little

Joe,” “Pigs & Pork,” “Pigs,”“Farmer George Plants aNation,” “Seed, Soil and Sun”and the “Beef Princess ofPractical County” were donat-ed to local grade school class-rooms.

• Farm Bureau placed an adin the local papers featuringlocal family farm photos in aneffort to raise awareness aboutfamily farm ownership.

MARION — FarmBureau will sponsor a

35-cent breakfast from 6 to 9a.m. Wednesday at the FarmBureau office. A breakfast ofscrambled eggs, pancakes, bis-cuits and gravy, orange juice,milk, and coffee will beserved. Tickets are available atthe Farm Bureau office orfrom a director. The 35 centsrepresents the average incomereceived by a farmer for theagricultural commodities in a$5.50 breakfast purchased at arestaurant. No carryouts.

MASON — The FarmBureau Board,

Women’s Committee, andYoung Ag Leader Committeewill visit second and thirdgraders in the county with alesson about agriculture. Theywill bring a combine, newertractor, antique tractor, and asemi truck to the schools.

MERCER — FarmBureau will sponsor a

food drive with donationsgoing to the Mercer CountyFood Pantry. Non-perishablefood items can be dropped offfrom 8 a.m. to 4 p.m. Monday

Bureau office at 217-253-4442to receive a coupon for thebreakfast.

EDWARDS — Displaysof entries for the

school contests for NationalAg Week will be at the CitizensNational Bank and First Bankin Albion, First Bank inGrayville, and First State Bankin West Salem.

• Tray liners featuringschool contest winning entrieswill be at the McDonald’s inAlbion.

• The Foundation will givebooks to the Wells Elemen-tary, Albion Grade School, andWest Salem Grade School.

• The Women’s Committeewill have a window display“May the Farm Be With You”at the West Salem CountryMarket.

EFFINGHAM — FarmBureau will sponsor

agricultural quizzes on localradio stations. Ag-related mul-tiple choice questions will airMonday through Friday onlocal radio stations includingWXEF and WKJT. Winners ofthe quizzes will receive a $25gift certificate to a local grocerystore or a local gas station.

FULTON — Volunteersare hosting a Farmer’s

Share Breakfast from 7 to 10a.m. Saturday at the FultonCounty Farm BureauBuilding. Cost is 68 cents.Breakfast will be bacon, toast,pancakes, biscuits and gravy,scrambled eggs, orange juice,milk, and coffee.

GALLATIN — FarmBureau is sponsoring

newspaper and radio advertis-ing highlighting Ag Week.

HANCOCK — TheEducation Committee

will give three new ag-relatedlibrary books to each elemen-tary school in the county. Thebooks feature some type ofagriculture. Merlin Tobias, alocal farmer from Basco, willvisit second grade classroomson Monday (today). Studentsare asked to find pictures ofthings or people related to agri-culture and glue their picturesonto a barn frame artwork. Stu-dents will do a brief write-up onthe pictures they selected andhow they relate to agriculture.The artwork will be displayed inthe school during the week.

• An E85 promotion will befrom 11 a.m. to 1 p.m. Fridayat Roger Law’s Service Station,Carthage. E85 will be markeddown to 85 cents a gallon dur-ing the promotion with a max-imum of 10 gallons per cus-tomer. Free hotdogs, chips,and soda will be served. Thepromotion is sponsored by theMarketing Committee, West-Central FS, and the IllinoisCorn Growers Association.

• A series of letters to edi-tors and press releases will besent to local media.

• A Farmer’s Prayer insertwas sent to the county’schurches.

HENRY — The YoungLeaders Committee

will visit county fourth gradeclassrooms. They will show avideo, do a project with thestudents, and discuss theirfarming operations. In con-junction with the visits, the“Where Does My Food ComeFrom?” T-shirt contest will beheld. Fourth graders may sub-mit a poster depicting agricul-ture in Henry County, and thewinning entry will be trans-ferred to T-shirts for all thestudents and teacher in theclass.

• The Women’s Committeewill be provide church bulletininserts to area churches.

• The Women’s Committeewill sponsor a poster contest“Where Does All That CornGo?” for first, second, andthird grade students.

• Table tents featuring agfacts will be placed on restau-rant tables throughout thecounty to celebrate Ag Week.

• Area businesses will beasked to help celebrateNational Ag Week by placing amessage on their marquees.

JACKSON — TheWomen’s Committee has

teamed up with the John A.Logan Museum in Murphys-boro to open a farm exhibit“On the Farm: Memories ofNot that Long Ago.” Theexhibit has many items includ-ing tools and appliances. Thegrand opening is Tuesday andwill run through November.

• Farm Bureau will donate abag of agricultural books toarea schools for their schoollibraries.

KANE — Farm Bureauwill sponsor its 27th

Annual Ag Days at Moose-heart Fieldhouse Tuesdaythrough Thursday. More than1,500 fourth graders will heara series of 20 presentationsfrom area farmers, agri-busi-ness representatives, and FarmBureau volunteers on agricul-tural topics. Farm Bureaumembers interested in seeingor volunteering for Ag Daysmay contact the Farm Bureauat 630-584-8660 for moreinformation.

KANKAKEE — Theannual “Kids Day at

the Farm” program will beWednesday and Thursday.Fourth grade students areinvited to attend. Studentswill rotate between 24 separatepresentations, which includeembryology, specialty crops,herb production, soybeans,ethanol, dairy, JohnsonvilleBrats, and a nutritional pro-gram “Have you eaten a flowertoday?” Live animals also willbe on display.

KNOX — The Women’sCommittee will donate See Ag Week page 13

Page 13: FarmWeek March 14 2011

FROM THE COUNTIES

Page 13 Monday, March 14, 2011 FarmWeek

BUREAU — TheBureau, LaSalle, and

Lee County Young Leaderswill sponsor a bowling nightThursday, March 24. Theevening begins at 6:30 p.m. atLou’s La Grotto, Peru, for piz-za. Bowling will follow at theSuper Bowl, Peru. Membersbetween the ages of 18 and 35and their families are invited.Call the Farm Bureau office at815-875-6468 by Thursday forreservations or more informa-tion.

CARROLL — ThePublic Relations Team

will sponsor an informationalmeeting at 7 p.m. Thursday,March 24, at the NaamanDiehl auditorium. The facili-ties sales tax, which will be onthe April ballot, will be dis-cussed. Brenda Matherly, Illi-nois Farm Bureau assistantdirector of local government,will be the speaker. Call theFarm Bureau office at 815-244-3001 for more informa-tion.

• Deadline to return schol-arship applications is Thurs-day, March 24. Call the FarmBureau office at 815-244-3001or visit the website{www.carrollcfb.org} for anapplication form.

CHAMPAIGN —Farm Bureau will

sponsor a “Trade and ItsImpact on Agriculture” meet-ing at 7 p.m. Tuesday, March22, at the Farm Bureau audi-torium. Tamara Nelsen, Illi-nois Farm Bureau seniordirector of commodities, willbe the speaker. Call the FarmBureau office at 325-5235 or

from 7 to 8 p.m. Tuesday.Committee members will sur-face new ideas, concerns, andneeds of its membership.

LEE — During themonth of March, Cul-

vers in Dixon will double thediscount it provides FarmBureau members from 5 to 10percent to show appreciationfor agriculture.

SCHUYLER — TheSchuyler County Farm

Bureau Foundation has schol-arships available for studentsenrolled in an ag-related fieldof study for the fall semester.Applicants must have an agbackground or be residents ofSchuyler County. Call or stopby at the Farm Bureau officefor a scholarship application.Applications are due by 4 p.m.Friday to the Farm Bureauoffice.

STARK — The StarkCounty Farm Bureau

Foundation has a scholarshipavailable for a student whowill be a freshman or sopho-more in college and anotherfor a student who will be ajunior or senior in college. Athird scholarship will beawarded to the most deserv-ing applicant in either catego-ry.

Applicants must be a mem-ber of Stark County FarmBureau or a dependent of amember or a Stark Countyresident pursuing a degree inan ag-related field of study.Deadline to return applica-tions is by 4:30 p.m. Thursday,March 31. Call the FarmBureau office for more infor-mation.

WAYNE — Seven$500 scholarships are

available for Wayne Countystudents majoring in an ag-related field of study for thefall semester. Applications areavailable on the website{www.waynecfb.com}. Dead-line to return applications isMarch 31.

WHITE — The YoungLeader Committee

has a $500 scholarship avail-able to a White County stu-dent majoring in an ag-relatedfield of study for the fallsemester. Applications areavailable on the website{www.whitecfb.com}. Dead-line to return applications isMarch 31.

WINNEBAGO —The annual meeting

will be at 5:30 p.m. Saturday atthe Discovery Center, Rock-ford. A buffet dinner will beserved. Cost is $10. Call theFarm Bureau office at 815-962-0653 for reservations ormore information.

• Farm Bureau will sponsora Hawaii trip preview meetingat 7 p.m. Thursday, March 31,at the Farm Bureau office.The 10-day trip, which will beJan. 8-17, 2012, will coincidewith the American FarmBureau Federation annualmeeting. Tri-State Travel willprovide information on thetour.

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

visit the website {www.cc-farm bureau.com} for moreinformation.

COOK — The PublicPolicy Team will co-

sponsor a seminar for prop-erty owners at 7 p.m. Mon-day, March 21, at the FarmBureau office. Representa-tives from the board ofreview, assessor’s office, andIllinois Farm Bureau will bethe speakers. Call the FarmBureau office at 708-354-3276 for reservations ormore information.

• The Members RelationsTeam will sponsor a two-dayboating safety course from 9a.m. to 3 p.m. Saturday,March 26, and from 10 a.m.to 4 p.m. Sunday, March 27,at the Farm Bureau office.Bring your own lunch. Callthe Farm Bureau office at708-354-3276 for reserva-tions or more information.

• The Commodities andMarketing Team will sponsora “Farming on Your Balcony”workshop from 9 to 11 a.m.Saturday, April 9, at the FarmBureau office. Participantswill learn how to raise pro-duce in small areas. Call theFarm Bureau office at 708-354-3276 by Wednesday,April 6, for reservations ormore information.

DEWITT — TheYoung Leaders Har-

vest for All food drive will befrom 10 a.m. to 2 p.m. Satur-day at the Clinton Save-A-Lot,Clinton IGA, and FarmerCity’s Niemann’s Market.

• The Prime Timers willcarpool at 9:45 a.m. Friday,

March 25, from the FarmBureau office to the Syngentaseed research farm. Lunchwill be at Ted’s Garage at11:30 a.m. followed by a 1p.m. tour of the Syngenta dis-tribution center. Call theFarm Bureau office for moreinformation.

• Farm Bureau will have abooth from 4 to 8 p.m.Wednesday, March 30, at theClinton Chamber BusinessExpo, at the Clinton JuniorHigh School.

• Scholarship applicationsare available at the FarmBureau office and from highschool vo-ag teachers andcounselors.

DOUGLAS — Theannual meeting will be

at 5:30 p.m. Thursday, March24, at Yoder’s Kitchen,Arthur. Max Armstrong,WGN Radio, will be thespeaker. Dinner will beserved. Call the Farm Bureauoffice at 217-253-4442 byTuesday for reservations ormore information.

HENRY — YoungLeaders will sponsor a

countywide food drive “Shar-ing the Harvest” throughMarch 25. Non-perishablefood items may be droppedoff at the Farm Bureau officeor at any Country Financialoffice in Henry County.Young Leaders will deliver thecollected items to foodpantries throughout the coun-ty. Contact the Farm Bureaufor more information.

LASALLE — TheViewpoint Committee

will sponsor a call-a-thon

through Friday at the FarmBureau office. For everyitem individuals bring in,their name will be insertedinto a drawing for a $50 giftcard to the Liberty StationSteakhouse. If you bring inone of the “most neededitems,” you will get yourname put in twice. Contactthe Farm Bureau office forthose items.

• Farm Bureau will spon-soring a mobile food bankfrom 10 a.m. to 1 p.m. Sat-urday at Central Park, Ale-do. River Bend Food Bankwill distribute food to 300Mercer County families inneed. Volunteers are neededto help hand out 10,000pounds of food. Themobile food bank was paidfor through “Bushels forHunger.”

PEORIA — FarmBureau will sponsor a

Farmers Image TV commer-cial during the IHSA boys’basketball tournament on

Friday and Saturday.• The Peoria, Fulton,

Tazewell, and WoodfordCounty Farm Bureaus willsponsor a billboard cam-paign. Five identical bill-

boards have been put up inthe Peoria area. The bill-boards highlight the FarmerImage campaign.

PIATT — FarmBureau and the Cerro

Gordo and Monticello FFAChapters will sponsor an AgDay breakfast at 7:30 a.m.Friday at the MonticelloCommunity Building. Paul

Mariman, U of I Extension,will be the guest speaker.

• Table tents with agricul-ture facts will be placed atrestaurants throughout thecounty.

SALINE — FarmBureau is sponsoring

newspaper and radio adver-tising highlighting Ag Week.

SCHUYLER — TheAg Day Committee

will sponsor an Ag Daybreakfast from 6 to 8 a.m.Friday at the Phoenix OperaHouse, Rushville. Dona-tions will be accepted forthe breakfast. Awards forMaster Farm Family, Patronof Ag, and Young FarmFamily will be at 7 a.m.During the breakfast, theSarah D. Culbertson Memo-rial Hospital will be con-ducting preventative healthscreenings. Call 217-322-5269 for more informationabout the health screenings.

SHELBY — FarmBureau, Shelby Coun-

ty News, and Wade’s Quality

Meats will sponsor “Far-mVille vs. Farmers” agricul-ture trivia contest throughSunday on the website{shelbyconews.net}. Thewinner will be announcedMarch 23.

• The Young Farmers willsponsor a Farm-City break-fast from 6 to 8 a.m.Wednesday at the ShelbyCounty 4-H Center, Shel-byville. A breakfast of bis-cuits and gravy, scrambledeggs, bacon, milk, juice, andcoffee will be catered byWindsor Food Center. Costis 80 cents, which is afarmer’s share of a $4breakfast. The breakfast isbeing sponsored with adonation from Effingham-Clay FS.

VERMILION —Farm Bureau will dis-

tribute more than 30,000placemats to nearly 40restaurants in VermilionCounty. The placemats willfocus on “Myths and Factsin Agriculture.” There are

Continued from page 12

AG WEEK

19 Vermilion countyagribusinesses co-sponsor-ing the project.

WABASH — Stopby the Farm Bureau

office to find out how“Agriculture is Amazing.”Snacks and other favors willbe given out all week. Freehot dogs, popcorn, anddrinks will be served from11 a.m. to 1 p.m. Thursday.Door prizes will be drawnat the end of the week.

Page 14: FarmWeek March 14 2011

PROFITABILITY

FarmWeek Page 14 Monday, March 14, 2011

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $34.50-54.00 $42.6540 lbs. $74.00-78.00 $76.8450 lbs. n/a n/aReceipts This Week Last Week

25,827 27,630*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 $81.20 $79.98 1.22Live $60.09 $59.19 0.90

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn3-03-11 26.4 21.4 43.92-24-11 49.2 19.6 24.7Last year 34.6 21.1 38.5Season total 1176.6 883.3 846.0Previous season total 1147.8 645.7 853.8USDA 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 117.61 112.81 4.80Heifers 117.81 112.74 5.07

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 Change129.25 128.42 0.83

CME feeder cattle index — 600-800 Lbs.

Slaughter Prices - Negotiated, Live, wooled and shorn 130-177 lbs. for152.50-174 $/cwt.(wtd ave. 166.74); dressed, no sales reported.

Lamb prices

The winter of more than one type of blizzard BY CHUCK SPENCER

Enduring one of thesnowiest Februarys on recordwas a challenge, but I recallthe late 1970’s when we had

one-lanepaths oncountry roadsbecauseplows couldnot push thesnow backany farther.Today, friendson rural roads

get frustrated if the plowtruck has not come by noon.

Blizzards can be blinding,slow the process of farm work

down, cost us extra time andmoney, and generally create alot more work to get the samething accomplished during ourwork day.

Regulatory blizzards have alot in common with naturalones.

This past winter may beknown for its regulatory bliz-zard as well as snow cover inall 50 states. Agriculture andsmall business are involved inwriting opinions and reactingto regulations addressingfinancial services, pesticideapplication, spray drift, waterquality, and nutrient manage-ment from livestock farms.

One regulation we shouldall know more about is a pro-posed rule by the U.S. Envi-ronmental Protection Agency(EPA) to issue a national pol-lution discharge eliminationsystem permit for pesticideapplications. There is a pro-posed regulation scheduled totake effect April 9 in each staterequiring a permit for theapplication of aquatic pesti-cides and applications of pes-ticides on forest lands.

Think of the paperworkcreated for another permitwhen the pesticide has alreadybeen approved through theEPA review process and has

been regulated by the FederalInsecticide, Fungicide andRodenticide Act since 1972.

The EPA had to developthis permit process due to acourt ruling in 2009 when the6th Circuit Court of Appealsoverturned EPA’s longstandingpolicy that did not require per-mits for pesticides applied onor near U.S. waters.

April 9 is nearly here andEPA does not have its finalrule issued. States have pro-posed rules and are waiting tosee the final EPA ruling.

The final rule is still underreview by Office of Manage-ment and Budget. Discussions

to consider asking the CircuitCourt of Appeals to delayimplementation are ongoing.

Agriculture and small busi-ness need science-based, pre-dictable regulatory processesto guide our business deci-sions. We can work with regu-lations developed in this fash-ion. However, if we continueto have uncertain rulings fromcourts and not from science,we may have to turn to legisla-tion for corrective action.

Chuck Spencer is GROW-MARK’s director of governmentalaffairs. His e-mail address [email protected].

Chuck Spencer

Traders to focus on prospective planting report, spring weatherBY DANIEL GRANTFarmWeek

The next major move in thecrop markets likely willdepend on U.S. farmers’ plant-ing intentions, which will bereleased this month, followedby their ability to executethose intentions in April andMay.

USDA at its Ag OutlookForum last month estimatedfarmers this year will increaseplantings from last year by 3.8million acres for corn, 600,000acres for soybeans, and 2 mil-lion acres for cotton.

But those numbers couldchange in coming weeks dueto an ongoing “acreage battle.”Actual plantings also could

change depending on whetherspring weather is favorable,which could favor more cornacres, or unfavorable.

USDA on March 31 willrelease its highly anticipatedprospective plantings report.

“I think the corn market isat a breather right now as itwaits to see what the March 31report shows us,” said DanZwicker, market analyst withADM Grain Group ofDecatur, last week at theWILL Ag Outlook meeting inCovington, Ind.

Analysts at the meetingprovided reasons as to whycorn acres could be aboveUSDA’s estimated 92 millionacres or below that figure.

“With a $100 per acreadvantage (over soybeanreturns), I think corn acreagewill be higher,” said Paul Cool-ley, analyst with ADMInvestor Services of Oakland.

But Chuck Shelby, of RiskManagement Commodities in

Lafayette, Ind., believesrecord-high cotton prices willpull more acres to that cropdown south, at the expense ofcorn and bean acres.

“We don’t believe the (new-crop) corn price is highenough to buy 92 to 93 millionacres,” Shelby said.

But analysts at the meetingwere quick to point out themain issue to determine finalproduction numbers will beweather during the growingseason.

Darrel Good and ScottIrwin, University of Illinois ageconomists, recently made cornyield and price forecasts basedon various weather scenarios.

They calculated a trend-lineyield this year of 158 bushels

per acre would not be enoughto rebuild inventories, basedon 92 million planted acres,and the price could average$5.75 per bushel.

The average corn price thisyear could skyrocket to $7 perbushel under a bad weatherscenario, which could reducethe average yield to 147bushels per acre.

On the flipside, optimalweather this growing seasoncould produce an average yieldof 169 bushels per acre, whichwould lead to record corn pro-duction above 14 billionbushels.

The average corn pricecould slip to $4.75 this yearunder the good weather/topyield scenario.

‘ I think the cornm a r k e t i s a t ab r e a t h e r a s i twaits to see whatthe March 31 re-port shows us.’

— Dan Zwickermarket analyst

ADM Grain Group

Farmers, particularly those with less than1,000 acres, looking to maintain or expandtheir operations currently face some majorchallenges.

Input prices this year are projected to reacha record-high, land prices have surged to$8,000-plus per acre in some areas, and compe-tition to cash-rent ground is fierce.

“Sixty to 70 percent of land in Illinois isowned by someone who doesn’t farm it,” Den-nis Hoyt, of Farmers National Co., told farm-ers last week at the WILL Ag Outlook Meetingin Covington, Ind. “For many of you, that maybe part of your future or demise.”

Hoyt, business associate Stephen Wrightand Murray Wise, founder of Murray Wise andAssociates, advised farmers to deal with all thevolatility and risk by looking for partnershipopportunities with landlords and even otherfarmers.

The group of farmers that may benefit themost from partnership opportunities is thosewho farm 600 to 1,000 acres.

Farmers who farm less, such as hobby farm-ers, typically derive most of their income offthe farm while those who farm more than 1,000acres generally have more ability to spread costsand find better marketing opportunities.

“How does a 600-to 1,000-acre farmercompete and survive?” Wright questioned.“Find opportunities to partner with neigh-

bors of similar size and style.” Wright said many farmers have $500,000 to

$1 million worth of equipment that’s capableof covering more ground. If the equipment oftwo operations is combined, it could allowthose farmers to save money and invest in spe-cialty equipment (such as sprayers and graincarts) that will improve the overall efficiencyand productivity of both farms.

Once two farm operations surpass about2,000 acres as a combined entity, those farmersalso become more appealing to seed compa-nies and landlords. They can buy more seedand chemicals in bulk; they may see moreopportunities for specialty crop production;and they may be able to reduce their need forhired labor, according to Wright.

Such an arrangement, however, must beplanned well before it will work.

“It’s a must to get legal advice (before form-ing a partnership),” Wright said. “Don’t do itwith a handshake.”

A dependable farm partner, which couldinclude a spouse or relative, also can help a farmerimprove his or her marketing plan, according toRoy Huckabay, of Linn Group in Chicago.

“One of the best tools in the toolbox is agood partner,” Huckabay said. “Farmers oftenget emotionally attached to their crops” anddon’t always make the best marketing decisionsas a result. — Daniel Grant

Analysts: In high-stakes world of farming, two heads are better than one

Page 15: FarmWeek March 14 2011

PROFITABILITY

FarmWeek Page 15 Monday, March 14, 2011

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CASH STRATEGISTCorn Strategy

�2010 crop: May futureslast week dropped throughsupports at $6.96 and $6.67,turning the short-term trenddown into the 40-week lowdue later in the month. But,because of the action after theJapanese earthquake, that lowcould come at any time. Wewouldn’t sell the break, butuse rallies above $6.95 on Mayfor catch-up sales. Hedge-to-arrive (HTA) contracts forwinter/spring delivery are stillthe best tool.

�2011 crop: We wouldn’tmake sales on this break.There should be another goodselling opportunity after the40-week cycle bottoms, butmaybe not as high as therecent peak.

�Fundamentals: Emo-tions in the wake of the Japan-ese earthquake sparked a waveof long liquidation. Still, eco-nomic repercussions couldslow Japanese imports, andthey are our largest cornimporter. Also, a southeasternfeed group indicated they areimporting Canadian feedwheat. This, and feeding ofour own wheat, should helpease the stress on U.S. cornsupplies.Soybean Strategy

�2010 crop: Demand forU.S. soybeans will continue tosubside as South Americansupplies become readily avail-able. Poor crush margins willerode domestic processordemand. Without a weatherproblem, lower prices areahead. Use a rally to $13.50-$13.80 to wrap up sales.

�2011 crop: Low relativeprices make soybeans a lessattractive alternative, but thehigh insurance guarantees willensure overall plantings,including soybeans, will belarge. Use a rally on Novem-ber to $13.60-$13.80 to makesales. Plan to increase them to50 percent by early summer.

�Fundamentals: Not onlyare South American soybeansabout to replace U.S. soybeansin the world trade, but nowtotal world demand may betemporarily dented because ofrepercussions in Japan in thewake of the earthquake.

There’s a growing sense wemight have seen our smallestending stocks estimate. Wheat Strategy

�2010 crop: Emotions inthe aftermath of the Japaneseearthquake pushed ChicagoMay wheat futures to supportstarting at $7. There’s achance it could drop to $6.75-$6.80, but this decline shouldbe nearly exhausted for now.Don’t sell the break, but planto use a rebound to the $7.80sto wrap up sales. A HTA con-tract is still the best, but planfor a late April/May delivery.

�2011 crop: Use rallies to

$8 on Chicago July 2011 futuresfor catch-up sales. Once thisliquidation break is over, thereshould be another rally for sales.We still prefer HTA contracts.

�Fundamentals: Therecent supply/demand reportconfirmed what the trade wassuspecting, but wasn’t ready toacknowledge, export businessappears to be slowing. And withshipments lagging the neededpace, it was becoming apparentthe USDA forecast was toohigh. Conditions have improvedin the Great Plains, but after thebrief improvement, the short-term weather pattern appears tohave turned dry again.

Everyone awoke March 11to news the largest earthquakeever to hit Japan struck in theovernight hours. Marketswere hit hard as the uncertain-ty of the impact causedinvestors to start pulling posi-tions from a number of mar-kets, grains included. Add inprotective stop orders protect-ing positions held by the bigtrading funds, and you had themix to drive prices sharplylower. At one point, a fewcorn contracts were limitdown.

It’s always difficult to assessthe impact of an event like theone we have just seen, but itcertainly isn’t bullish. But, it’sprobably not that bearish either.

And, there’s a differencediscerning the short-term andlong-term implications of suchan event. In the short term,the disruption of ports, road-ways, and rail lines can haltshipments for a few days orweeks. In the long term,there’s the economic repercus-sions of the event and theimpact it may have on demand.

And because it is Japan, it issignificant. The Japanese areour top importer of corn andpork, No. 1 and 2 wheatimporter, and No. 3 soybeanimporter. That has hugerepercussions for us in boththe short and long term.

Fortunately, the earthquakeand tsunami were in the north-

Basis charts

eastern part of the country.Most of the ports used toimport commodities are saidto be near Osaka in southwestJapan.

This will be an evolving sit-uation that deserves attention.We don’t anticipate any bignegative repercussions fromthe earthquake. But, even ifdemand slows a little, it couldbe enough to cap this year’srally in the grain markets,unless there’s major develop-ment with the new crops.

The reports coming atmonth’s end will go a long wayto offering an insight into mar-ket potential over the next fewmonths, too.

The industry will be espe-cially interested in theprospective planting report.There has been an ongoingdiscussion this winter aboutwhether producers have thecapability of planting enoughacres of all crops.

Most of the focus has beenon soybeans because of its lowprice relative to corn and cot-ton. Prices for those two willattract acreage, but we believehigh insurance guarantees andavailable acreage will allow soy-bean plantings to be largeenough to meet potential needs.

The quarterly grain stocksreport may be equally asimportant, especially for cornand soybeans, because of thecurrent tight ending stocksprojections.

The March 1 stocks num-bers for both are the firstgood benchmark indicatinghow good demand may havebeen through the first half ofthe marketing year. Using thecombination of that demandthrough the first half of theseason and the March 1stocks, one can better predictdemand through the end ofthe marketing year, and thepotential ending stocks levels.

Given the tight supplies andthe need for large acreage,weather will play a large partduring planting, and into sum-mer. Today’s events onlyserve to underscore the uncer-tainty and volatility marketswill face this growing season.

Cents per bu.

The big bang rattles markets

Page 16: FarmWeek March 14 2011

PERSPECTIVES

FarmWeek Page 16 Monday, March 14, 2011

LETTER TO THE EDITORCelebrate contributionsof ag teachers, educationEditor:

Students enrolled in agricultural education coursesacross the country will celebrate the second annualNational Teach Ag Day on March 24.

National Teach Ag Day is a day set aside to cele-brate agricultural education and for teachers to sharewith their students the possibilities of a career in theteaching profession.

A national shortage of agricultural educatorsexists in the United States. National Teach Ag Day ispart of a campaign to raise awareness of the career.

Agriculture teachers prepare students for high-demandcareers in cutting-edge industries, such as biotechnology,renewable energy, food production, and more.

Ag teachers also teach students how to be leaders

and prepare them to take on the challenges of thenext generation.

Many people do not realize that students enrolledin agriculture classes at the high school level arelearning things they cannot get anywhere else. Notonly are they learning basic shop, horticulture, andag science concepts, but they also are learning math,science, and language arts skills in a hands-on waythat helps them apply their lessons to real life.

National Teach Ag Day is a part of the NationalTeach Ag Campaign, an initiative of the NationalCouncil for Agricultural Education led by theNational Association of Agricultural Educators.

For more information about teaching agriculture,visit {www.naae.org/teachag}.SARAH CARSON,University of IllinoisAg Ed Club vice president

Letter policyLetters are limited to 300 words and must in-

clude a name and address.FarmWeek reserves the right to reject any letter

and will not publish political endorsements.All letters are subject to editing, and only an

original with a written signature and complete ad-dress will be accepted.

A daytime telephone number is required for ver-ification, but will not be published.

Only one letter per writer will be accepted in a30-day period.

Typed letters are preferred.Send letters to:

FarmWeek Letters1701 Towanda Ave.

Bloomington, Ill., 61701

What is pollination? Oneway to find out is to look upthe definition of the word. It isjust for such situations that wehave dictionaries. Today youcan go online to find a worddefinition or consult a printedtext.

According to my AmericanHeritage dictionary, the defini-tion of pollination is “to con-

vey or transferpollen from ananther to a stig-ma of a flowerin the process offertilization.”Like a lot ofdefinitions,that one is,well, a bit dull.

To biolo-gists, pollination is a process, acomplex part of sexual repro-duction in plants. The pollina-tion system has evolved overmillions of years and involvesspecialized plant structures andtransportation of pollen bymechanical means or by living

organisms. It also is a tale ofbribery and sometimes deceitfitting for a tell-all TV talkshow.

Plant pollination takes placeunder our very noses on a dailybasis during the growing sea-son, but mostly to indifferentspectators. Except, that is, tothe 30 percent or so of us whosuffer from allergic rhinitis, arespiratory ailment betterknown as hay fever. This is adisease that is often caused bythe inhalation of pollen grains.

So how did insects getinvolved in plant pollination?No one knows for sure, butone hypothesis is that it allbegan when some ancient bee-tles discovered that pollen wasa good food item.

Why beetles and not someother type of insect? As itturns out beetles have been onthe earth for a long time andwere here before plants evenhad flowers. In addition, bee-tles have mouthparts of thechewing type that would have

made it easy for them to masti-cate and ingest pollen.

What happened after this isan example of what scientistscall coevolution.

Coevolution is when twoorganisms have evolved to apoint where both are depen-dent on the other for survival.An example of such a systemis some flowering plants andinsects that transport pollen.

Here’s how it works. Plantsproduce pollen that needs tobe transported to other plantsfor sexual reproduction to besuccessful.

The plant has a flower thatis an attraction to insectsbecause of its odor and ultra-violet color patterns. Theflower also is a convenientlanding pad.

Insects visit flowers becauseof the availability of a sip ofnectar, a food item for theinsect.

The structure of the floweris such that the insect will getpollen on its body as it works

its way to the source of thenectar.

The sip of nectar is smallenough so that the insect goesfrom flower to flower to satisfyits hunger. When that happenspollen from one flower istransferred to another by theinsect.

The result is that the plantsare pollinated and the insectsget fed. It’s a “You scratch myback and I’ll return the favor”type of system that is verypopular in the political world.

On the insect side of thedeal, the best pollinators nor-mally have the ability to fly,have mouthparts structured toimbibe nectar and a hairy bodygood for collecting pollen.Insect pollinators include a fewbeetles, some butterflies andmoths, a few flies, a few wasps,and a lot of bees.

Most plant pollination byinsects is due to bees wherethe pollen, and sometimesthe nectar, becomes a foodsource for the adults and the

immature forms. The bee pollinators include

those called solitary beesbecause they each have theirown nests. Some, such as sweatbees and mining bees, live inground burrows. Others, suchas orchard bees and carpenterbees, live in wood cavities.

The most recognizable ofthe bees are social bees thatlive in colonies.

These are bumble bees thathave an annual colony andhoney bees that live in a colonythat persists over several years.

Pollination seems like agreat system where everyonewins. Not so. A few bumblebees are known as nectarthieves. They chew through theflower and steal the nectarwithout carrying pollen. Nowthat’s a real slap in the face ofyour honey!

Tom Turpin is an entomologist atPurdue University, West Lafayette,Ind. His e-mail address [email protected]

TOMTURPIN

Good thing insect pollinators are willing to work for food

For most of us, whenUSDA is mentioned, we thinkof agriculture — farming,ranching, livestock, fruits andvegetables, and the offices itmaintains in most countiesaround the country to imple-ment farm programs. We might

need to changeour thinking.

USDA’s budgetfor 2012 wasrecently releasedand, it turns out,almost 75 percent

of the money itspends goes tonutritional pro-grams, with only

about 10 percent allocated towhat one normally thinks of asagricultural activities.

So where is 75 percent ofUSDA’s budget going? Oneprogram that takes more thanhalf of USDA’s budget is the

Supplemental Nutrition Assis-tance Program (SNAP). I wentto the USDA website to learnmore about SNAP. It turns outSNAP has its roots in the FoodStamp Program.

Today, according to the web-site, SNAP “helps put healthyfood on the table for over 40million people each month.”Food stamps, it seems, arebecoming a thing of the past,replaced with a plastic electron-ic card, rather like a debit card.The card may be used to payfor groceries at authorized foodstores.

The SNAP website has areally good locator to help youpick a nearby store where eligi-ble SNAP program participantsmay “use SNAP benefits to puthealthy food on the table.”Included for Macomb, asUSDA authorized food stores

to purchase healthy foods,are Casey’s, Dollar Tree,and Dollar General.

The secretary of agri-culture has determined itis OK for eligible partici-pants to use SNAP mon-ey to purchase energydrinks, soft drinks, candy,cookies, snack crackers,ice cream, and birthday cakes.The secretary also has deter-mined that liquor, cigarettes,and hot food may not be pur-chased with those funds.

Child nutrition programs areanother major budgetary itemfor USDA, taking about 13percent of its budget. The cen-ter piece for child nutritionprograms is the School LunchProgram. However, also count-ed as child nutrition programsare the School Breakfast Pro-gram, the Afterschool Snacks

Program, the Fresh Fruit andVegetable Program, and theSpecial Milk Program. USDAalso has school lunch programsfor children when school is notin session; it is called the“Seamless Summer Program.”

The final USDA adminis-tered program that receivessignificant funding is theWomen’s, Infants and Chil-dren’s Program (WIC), taking5 percent of the USDA bud-get — about the sameamount as spent on farm

commodity programs.The USDA website notes

that “WIC provides for supple-mental foods, health care refer-rals, and nutrition educationfor low-income pregnant,breastfeeding, and non-breast-feeding postpartum women,and to infants and children upto age five who are found to beat nutritional risk.” The secre-tary of agriculture, through theWIC program, has recentlybegun to promote breast feed-ing.

So the next time you thinkof the USDA or the secretaryof agriculture, keep in mindthat farming plays a very smallpart in their activities.

William Bailey is director of West-ern Illinois University’s School ofAgriculture, Macomb. His e-mailaddress is [email protected].

WILLIAMBAILEY

Where does USDA’s budget go? USDA spends a large share of itsfunding on nutritional programs.