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Periodicals: Time Valued Monday, October 11, 2010 Two sections Volume 38, No. FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau ® on the web: www.ilfb.org THE CLOCK IS STILL ticking on the time that Congress has to act on the estate tax before it is revived at a highly unfavorable rate. .............2 ILLINOIS STATE University last week began the countdown for the agriculture department’s cen- tennial celebration in 2011. ...........9 ILLINOIS VOTERS will decide a constitutional amendment and a quirky U.S. Senate race when they go to the polls Nov. 2. ..........4 PLEASING YIELDS USDA corn production estimate shocks traders BY DANIEL GRANT FarmWeek Many traders and market analysts expected USDA on Fri- day to trim its corn production estimate based on disappointing yields in Illinois and other key parts of the Corn Belt. But few were prepared for the extent of the cut as USDA chopped its corn production estimate by about a half billion bushels to a current total of 12.664 billion bushels. The national corn yield aver- age was slashed from 162.5 bushels to 155.8 bushels per acre. Many traders prior to the report expected USDA to lower the national yield estimate to about 160 bushels per acre. The yield adjustment was even more severe in Illinois. USDA lowered the estimated state corn yield average from 174 bushels last month to a current projection of 160 bushels per acre. “I’m shocked,” said Paul Georgantones, market analyst with Investment Trading Ser- vices, during a Minneapolis Grain Exchange teleconference. “500 million bushels is a very significant adjustment from September to October.” The report came one week after USDA increased its estimate for corn stocks by about 300 mil- lion bushels more than expected by traders. The corn market sub- sequently experienced an 85-cent price drop in the week prior to Friday’s crop report. Now, bullishness is expected to prevail in the market as sup- plies suddenly got much tighter. USDA on Friday also trimmed soybean production 2 percent to a current estimate of 3.41 billion bushels. The nation- al average soybean yield was reduced 0.3 of a bushel from last month to a current estimate of 44.4 bushels per acre. “The market will really respond to it,” Georgantones said of the crop report. “We’re headed to $6 corn pretty easily. “The livestock people are really going to get hurt,” he continued. “The days of $4 wheat, $3 corn, and $5 beans are long gone.” He recommended end users, such as livestock producers, extend their coverage on any future price breaks and try to lock in a basis on corn. Georgantones predicted bean prices could push to $12 or even $12.50 per bushel to buy acres Steve Mersinger of rural St. Jacob in Madison County started his soybean harvest last week in this 120-acre field. Mersinger said he is pleased with both corn and soybeans yields on his farm this year. Soybeans have averaged 65 bushels per acre; corn 200 bushels per acre. Recent averages for his farm have been 50 bushels per acre for soybeans and 175 bushels per acre for corn. He credited timely rains throughout the growing season for the good yields this year. Additional photos appear at {www.ilfb.org}. (Photo by Ken Kashian) for next year. Corn prices also must remain at levels competitive enough to buy acres for next year as U.S. producers this fall are expected to plant more wheat. “We do have supplies getting tight,” said Ankush Bhandari, director of economic research for Gavilon LLC, last week at the Export Exchange in Chica- go. “But what’s more important for 2011 is corn will have to fight for acres. We need to get above 90 million acres to keep the demand base growing.” The cut in U.S. soybean pro- duction also increased the need for South America to produce a big crop this winter. “If the world economy ever gets going, we will see (spot shortages) of commodities,” Georgantones said. “There’s going to be a real fight for acres.” Soybean yields were better than expected in Illinois. USDA on Friday raised its estimated state yield average from 51 bushels last month to a current projected record of 52 bushels per acre. FarmWeekNow.com Listen to market reactions from Dale Durchholz and Peter Georgantones at FarmWeekNow.com. BY MARTIN ROSS FarmWeek As the American Farm Bureau Federation (AFBF) last week effectively launched its farm bill dialogue, Illinois Farm Bureau President Philip Nelson suggested IFB is well- positioned to foster common ground between regional and even Midwest interests. Last week, Nelson and oth- er AFBF board members began to dissect upcoming policy issues, focusing on “the purpose of a farm bill.” Given severe budget constraints mov- ing into 2011-12, the Seneca farmer stressed the need to hone in and, ideally, reach nationwide consensus on pro- gram and policy goals. Regional differences likely will emerge at AFBF’s January annual meeting. IFB’s Farm Policy Task Force is two meet- ings into farm bill study; a third in November will shape policy proposals for IFB delegate consideration in December. That puts Illinois in a good position to address cross- regional concerns and thus foster harmony in national debate. Mutual prioritization is crucial with agriculture facing “some of the least resources available in any farm bill any of us (on the AFBF board) has ever seen,” Nelson said. Largely at issue is, “What is the South going to do?,” Nel- son said Friday. He noted southern Farm Bureau presi- dents were largely in a listening mode at the AFBF meeting, but cited diverse views over existing “safety net” programs. “Starting up front, you have direct payments at just shy of $5 billion (per year),” Nelson noted. “How are you going to carve that pie up? We’re look- ing at crop insurance — do we believe crop insurance needs to be refined? “Will the SURE (disaster assistance) program go away, or is there going to be an effort to try to keep it on life support? If so, where’s that money going to come from? Do we look at a county ACRE (average crop revenue election) trigger? ACRE has caused some issues nationwide, as well.” Also ahead of the game is the National Milk Producers Federation (NMPF), whose “Foundation for the Future” plan proposes to overhaul the federal milk pricing system, manage supply, and replace the price support program and the See Dialogue, page 2 AFBF dialogue begins; Illinois ahead of game?
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Page 1: FarmWeek October 11 2010

Per

iod

ical

s: T

ime

Val

ued

Monday, October 11, 2010 Two sections Volume 38, No.

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

THE CLOCK IS STILL tickingon the time that Congress has to acton the estate tax before it is revivedat a highly unfavorable rate. .............2

ILLINOIS STATE Universitylast week began the countdown forthe agriculture department’s cen-tennial celebration in 2011. ...........9

I L L I N O I S VOT E R S w i l ldecide a constitutional amendmentand a quirky U.S. Senate race whenthey go to the polls Nov. 2. ..........4

PLEASING YIELDS

USDA corn production estimate shocks tradersBY DANIEL GRANTFarmWeek

Many traders and marketanalysts expected USDA on Fri-day to trim its corn productionestimate based on disappointingyields in Illinois and other keyparts of the Corn Belt.

But few were prepared forthe extent of the cut as USDAchopped its corn production

estimate by about a half billionbushels to a current total of12.664 billion bushels.

The national corn yield aver-age was slashed from 162.5bushels to 155.8 bushels peracre. Many traders prior to thereport expected USDA to lowerthe national yield estimate toabout 160 bushels per acre.

The yield adjustment waseven more severe in Illinois.USDA lowered the estimatedstate corn yield average from174 bushels last month to acurrent projection of 160bushels per acre.

“I’m shocked,” said PaulGeorgantones, market analystwith Investment Trading Ser-

vices, during a MinneapolisGrain Exchange teleconference.“500 million bushels is a verysignificant adjustment fromSeptember to October.”

The report came one weekafter USDA increased its estimatefor corn stocks by about 300 mil-lion bushels more than expectedby traders. The corn market sub-sequently experienced an 85-centprice drop in the week prior toFriday’s crop report.

Now, bullishness is expectedto prevail in the market as sup-plies suddenly got much tighter.

USDA on Friday alsotrimmed soybean production 2percent to a current estimate of3.41 billion bushels. The nation-al average soybean yield wasreduced 0.3 of a bushel fromlast month to a current estimateof 44.4 bushels per acre.

“The market will reallyrespond to it,” Georgantonessaid of the crop report. “We’reheaded to $6 corn pretty easily.

“The livestock people are reallygoing to get hurt,” he continued.“The days of $4 wheat, $3 corn,and $5 beans are long gone.”

He recommended end users,such as livestock producers,extend their coverage on anyfuture price breaks and try tolock in a basis on corn.

Georgantones predicted beanprices could push to $12 or even$12.50 per bushel to buy acres

Steve Mersinger of rural St. Jacob in Madison County started his soybean harvest last week in this120-acre field. Mersinger said he is pleased with both corn and soybeans yields on his farm thisyear. Soybeans have averaged 65 bushels per acre; corn 200 bushels per acre. Recent averages forhis farm have been 50 bushels per acre for soybeans and 175 bushels per acre for corn. He creditedtimely rains throughout the growing season for the good yields this year. Additional photos appearat {www.ilfb.org}. (Photo by Ken Kashian)

for next year. Corn prices alsomust remain at levels competitiveenough to buy acres for next yearas U.S. producers this fall areexpected to plant more wheat.

“We do have supplies gettingtight,” said Ankush Bhandari,director of economic researchfor Gavilon LLC, last week atthe Export Exchange in Chica-

go. “But what’s more importantfor 2011 is corn will have tofight for acres. We need to getabove 90 million acres to keepthe demand base growing.”

The cut in U.S. soybean pro-duction also increased the needfor South America to produce abig crop this winter.

“If the world economy ever

gets going, we will see (spotshortages) of commodities,”Georgantones said. “There’sgoing to be a real fight for acres.”

Soybean yields were betterthan expected in Illinois. USDAon Friday raised its estimated stateyield average from 51 bushels lastmonth to a current projectedrecord of 52 bushels per acre.

FarmWeekNow.comL i s ten to market reac t ionsf rom Da le Durchho lz andP e t e r G e o r g a n t o n e s a tFarmWeekNow.com.

BY MARTIN ROSSFarmWeek

As the American FarmBureau Federation (AFBF) lastweek effectively launched itsfarm bill dialogue, IllinoisFarm Bureau President PhilipNelson suggested IFB is well-positioned to foster commonground between regional andeven Midwest interests.

Last week, Nelson and oth-er AFBF board membersbegan to dissect upcomingpolicy issues, focusing on “thepurpose of a farm bill.” Givensevere budget constraints mov-ing into 2011-12, the Senecafarmer stressed the need to

hone in and, ideally, reachnationwide consensus on pro-gram and policy goals.

Regional differences likelywill emerge at AFBF’s Januaryannual meeting. IFB’s FarmPolicy Task Force is two meet-ings into farm bill study; a thirdin November will shape policyproposals for IFB delegateconsideration in December.

That puts Illinois in a goodposition to address cross-regional concerns and thusfoster harmony in nationaldebate. Mutual prioritization iscrucial with agriculture facing“some of the least resourcesavailable in any farm bill any of

us (on the AFBF board) hasever seen,” Nelson said.

Largely at issue is, “What isthe South going to do?,” Nel-son said Friday. He notedsouthern Farm Bureau presi-dents were largely in a listeningmode at the AFBF meeting,but cited diverse views overexisting “safety net” programs.

“Starting up front, you havedirect payments at just shy of$5 billion (per year),” Nelsonnoted. “How are you going tocarve that pie up? We’re look-ing at crop insurance — do webelieve crop insurance needsto be refined?

“Will the SURE (disaster

assistance) program go away, oris there going to be an effort totry to keep it on life support? Ifso, where’s that money going tocome from? Do we look at acounty ACRE (average croprevenue election) trigger?ACRE has caused some issuesnationwide, as well.”

Also ahead of the game isthe National Milk ProducersFederation (NMPF), whose“Foundation for the Future”plan proposes to overhaul thefederal milk pricing system,manage supply, and replace theprice support program and the

See Dialogue, page 2

AFBF dialogue begins; Illinois ahead of game?

Page 2: FarmWeek October 11 2010

CRP PAYMENTS ON THE WAY — USDA this monthwill distribute about $1.6 billion in annual ConservationReserve Program (CRP) rental payments and $3.8 billion infinal 2010 direct payments.

“October (the first month of the federal fiscal year) is animportant production month because CRP rental payments,direct and countercyclical payments, and now Average CropRevenue Election (ACRE) payments are paid,” said Tom Vil-sack, ag secretary.

Producers holding 744,000 CRP contracts on 416,000 farmswill receive an average of $52.56 per acre in CRP rental pay-ments, or an average of $3,955 per farm. Total enrollment inCRP currently stands at 31.3 million acres.

HSUS, PETA MORE BELIEVEABLE? — New researchfrom the Center for Food Integrity (CFI) shows most con-sumers are twice as likely to believe the Humane Society of theUnited States (HSUS) and People for the Ethical Treatment ofAnimals (PETA) over farm organizations when it comes tohumane treatment of farm animals.

The research was released last week at the CFI’s Food Sum-mit in Chicago. The web-based survey was completed by 2,002respondents selected to reflect the overall composition of thepopulation.

After HSUS and PETA, farm animal veterinarians, USDA,and university experts ranked next, followed by state andnational farm organizations and small livestock farmers. Large-scale livestock farmers ranked last in animal welfare credibility.

“The research indicates consumers feel information from anon-governmental organization is significantly more crediblethan a group that profits from the meat industry,” said CharlieArnot, CFI’s CEO. “The closer you are to the money, the lesscredible your information.”

Arnot said the results make it increasingly important forfood system organizations to partner with credible groups andconnect with consumers using shared values.

Illinois Farm Bureau and commodity groups currently areinvolved in a campaign to heighten the farmer’s image.

The research also reveals that consumers favor more laws toensure the humane treatment of farm animals in their states,which explains why voters have looked favorably on HSUS-dri-ven ballot drives in California, Michigan, and Ohio to reformlivestock housing rules.

ILLINOIS GETS HEALTH $$ — U.S. Health andHuman Services Secretary Kathleen Sebelius last weekannounced awards of $727 million to 143 community healthcenters across the country to address construction and renova-tion needs and expand access to quality health care.

In Illinois, nearly $46 million in grants has been awarded tocommunity health centers. Recipients estimate the grants — thefirst in a series of awards that will be made available to commu-nity centers under the Affordable Care Act — will help themserve some 55,133 new patients.

Community health centers serve nearly 19 million patients,delivering preventive and primary care services at more than7,900 sites around the country. Charges for services are setaccording to income.

“The newly constructed or expanded community health cen-ters will provide care to an additional 745,000 patients andmuch needed employment opportunities in both rural andurban underserved communities,” Sebelius said.

FarmWeek Page 2 Monday, October 11, 2010

(ISSN0197-6680)

Vol. 38 No. 41 October 11, 2010

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

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

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

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© 2010 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

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Quick TakesGOVERNMENT

Estate tax dilemmagenerates farm déjà vu BY MARTIN ROSSFarmWeek

Jim Howard feels a strong sense of déjà vuthese days, as he contemplates many of hisrural neighbors looking anew down the barrelof the federal estate tax.

Howard vividly recalls his legal tussles withthe U.S. Internal Revenue Service (IRS) fol-lowing the 1982 death of his 82-year-oldmother.

After five years of making estate tax inter-est payments under an IRS settlement, theHenry County man reluctantly liquidatedprized farmland — according to Howard,“one-sixth of her estate” — to settle his debt.

The Howard estate was valued above whatwas then a $200,000 individual trigger forestate tax liability. Howard’s anger has beenfully rekindled as Illinois farm families facethe prospect of returning to a potentiallyhair-triggered, 10-year-old $1 million exemp-tion.

Illinois Farm Bureau supports U.S. Senateproposals to boost the individual exemptionto $5 million ($10 million per couple). UnderBush-era tax reforms, the per-person exemp-tion rose to $3.5 million in 2009 before thetax was repealed for 2010.

However, the tax will return Jan. 1 at pre-2002 levels if Congress fails to act, andHoward questions applying a tax aimed origi-nally at addressing family-owned monopoliesto modern operations with majorworking assets but often limitedfamily cash reserves.

If, as Howard argues, $200,000was “nothing” in terms of landholdings in 1982, rising Illinoisland values have moved producerswith even a few hundred acres farcloser to the estate tax trigger andpotentially high estate and/or taxplanning costs, he said.

“The money I had to send toWashington is probably minisculeby today’s standards, but it was anawful lot back then — it was anawful lot to me, and still is,” hesaid.

“You don’t have the earned hap-piness, you don’t have the earned income fromit. It’s gone, like blowing a candle out.”

Rock Island attorney Philip Koenig, whohelped Howard negotiate with the IRS, con-tinues to represent farm landownersthroughout his region. He agreed a $1 mil-lion exemption presses at “the net worthsof most substantial farmers,” noting localland values have reached $6,000 per acreand a new combine purchase alone runs$250,000.

In the early ‘80s, land values were “artifi-cially inflated,” encouraging farmland pur-

chases, Howard maintained. Area per-acrevalues dropped from the $3,000 range at thepoint of his mother’s death to roughly halfthat within a few years, but he was unable toadjust his tax liability under provisions thatlock in estate values at death.

At going farmland rates, 400 acres in theQuad Cities area easily can ring in at $2.4 mil-lion, and that’s “not a big farm holding,”Koenig said. “Truly, $1 million is going tothrow a lot of people back into the fold,” hetold FarmWeek.

In estate planning with a producer-clientwho holds 1,500 acres, he recognized a poten-tial “liquidity problem” for the farm’s heirs.Even estate tax formulas that offer discountsfor participating farmers based on land’s cashrent productivity “as a remedy aren’t quitewhat they would have been 25 years ago,” giv-en higher cash rents, Koenig said.

Further, he noted producers today cannotshift crops or activities to go with market flowsand ebbs. That “lack of flexibility” further com-plicates liquidity for farm heirs, particularlythose faced with estate tax liability.

Continued from page 1Milk Income Loss Contract witha margin protection insuranceplan.

Nelson gives NMPF “credit”for recognizing it may have toadapt to a $100 million annualdairy budget baseline.

At the same time, the Iowa

Farm Bureau Federation has comeout early with a controversial pro-posal to surrender at least a shareof direct payments for expandedrisk management funding.

Nelson also stressed theimportance of funding for theMarket Access Program, PublicLaw 480, and other initiatives

that foster global markets forU.S. producers.

“If we could jumpstart trade,that probably would gain us a lotmore than some of the pro-grams we’ve previously had inplace,” said Nelson, also a mem-ber of AFBF’s Trade AdvisoryCommittee.

Dialogue

Jim Howard

Page 3: FarmWeek October 11 2010

ENVIRONMENT

FarmWeek Page 3 Monday, October 11, 2010

Regional water plans floated as key to state economyBY KAY SHIPMANFarmWeek

Two regions have plans tomeet water needs up until theyear 2050, but the rest of thestate — and the state’s econo-my — also would benefit fromsimilar planning.

“Without planning, it’smuch more likely we’ll facecrises that could be avoided byplanning and stewardship,”said Derek Winstanley, a con-sultant to the MahometAquifer Consortium and for-mer director of the IllinoisState Water Survey.

Regional water planning forEast-Central and NortheasternIllinois started in 2006 with amandate by then-Gov. RodBlagojevich. Two regionalplanning groups analyzed cur-rent and future supplies, uses,and demands up to 2050.

The first plan released inJune 2009 covers 15 counties,known as the MahometAquifer region (see accompa-

nying map). The other planreleased in March 2010 covers11 counties in the Chicagometro area.

The impact of those plansand other water issues werediscussed during the IllinoisWater 2010 conference last

week in Champaign.Planning for future water

demands to accommodatepopulation and industrygrowth while maintaining sup-plies for current uses is a criti-cal need for the rest of thestate, several speakers said.

Businesses consideringexpansion or relocation needample and reliable water sup-plies and include that infor-mation in their siting deci-sions, said Alec Davis, anattorney with the IllinoisEnvironmental RegulatoryGroup, which is affiliated withthe Illinois Chamber of Com-merce.

By developing regionalwater plans across Illinois, thestate could demonstrate it hasa plan to address potentialshortages that might occur,Davis said. That would givebusinesses confidence “if youshow them you’re ready for(water supply) uncertainties,”he added.

Creating a favorable busi-ness environment to nurtureeconomic development in thestate is one of the strategicthemes of the Vision for Illi-nois Agriculture.

Gary Clark, director of Illi-nois Department of NaturalResources’ office of waterresources, noted the regionalplans would show industriesthat Illinois “understands (itswater) resources, that con-flicts can be dealt with —come to Illinois; we have ade-quate resources.”

Illinois modeled its region-al water planning process onthe process used in Texas,which has benefited from itswater plans, Winstanley said.

“Texas produced waterplans by regions to deal withexpanding populations,expanding uses, and worst-case scenario droughts. Thenit projected what it will doto try and meet (water)demands in the future,”

Winstanley said.Work soon will start on

water supply plans for a thirdarea of the state — theKaskaskia River Basin. Aplanning group, the SouthwestIllinois Resource Conserva-tion and Development Inc.,will coordinate planningefforts, Clark said. The firstmeeting in the region will beNov. 17.

However, state funding hasbeen a problem in developingwater supply plans. In fact,groups scrambled to findfunding to complete theNortheastern Illinois planafter state funding was cut inthe third year.

Clark said a state water useinventory is a key piece ofregional water plans, but theinventory has never been ade-quately funded.

“We need a statewide watersupply plan,” Clark said.

Funding is the crux of theissue.”

GREEN BEAN HARVEST PROGRESS

A green bean harvester dumps a load of second-crop beans into a cart on a Mason County field nearForest City. Seneca Foods has the contract for the crop. The beans were transferred into a semi be-fore traveling 500 miles to a Wisconsin processing plant. Inset: The beans just before harvest. (Photosby Dee Dee Gellerman, Mason County Farm Bureau manager)

Drought supplyplanning urged

When the next historicdrought burns Illinois, sixcommunities will run out ofwater and another 21 cities,home to 400,000 residents,face a 50-50 chance their watersupplies won’t last, said ahydrologist with the IllinoisState Water Survey (ISWS).

Despite that dire predic-tion, the state lacks overallwater supply plans for a his-toric drought such as a two-year drought that occurredfrom 1954 to 1956, VernKnapp told participants at anIllinois Water 2010 conferencelast week in Champaign.

Some local officials areusing the 1988 drought as ayardstick on whether theirwater supplies are adequate,

but that drought, althoughsevere in some places, lastedonly one year, not several,Knapp warned.

“It’s hard to convince peopleto act when they’ve not experi-enced those long-termdroughts,” Knapp said. “Whenyou’re in the midst of it(drought), you don’t know if itwill be short or long and youhave to plan as if it will continuefor two years.”

The potential impact ofdroughts on surface water sup-plies was highlighted duringregional water planning in East-Central and Northeastern Illi-nois (see accompanying story).

Most of the concerns aboutinadequate supplies center oncommunities that rely on reser-voirs or similar water storagesystems that are vulnerable todrought.

To help communities gauge

if their supplies are adequate,ISWS rates communities as inad-equate, at-risk, marginal, andadequate and estimates the prob-ability of the community sup-plies lasting throughout anextended drought.

ISWS hydrologists believethat six communities, Altamont,Canton, Coulterville, Farina,Springfield, and Staunton, willrun out of water during a his-toric drought; however, Spring-field’s supply also will depend onhow much water is used to gen-erate power during the drought.

Canton, though on that listnow, should be removed when itadds a pipeline to the Illinois

River, which is a less vulnerablewater source than the lake fromwhich the city now gets water,Knapp noted.

Even communities whosesupplies are designated as mar-ginal “will have to do a lot ofscrambling to meet (water) needsduring the last part of thedrought,” Knapp said.

In planning, local officialsneed to understand that waterwithdrawal rates increase duringa drought, Knapp continued.Additional strain on water sup-plies “happens months beforepeople realize they’re in adrought,” he said.

An additional wrinkle is the

lack of current information onsome reservoirs. Knapp estimat-ed about one-third of the reser-voirs’ capacity has been estimat-ed but never measured.

Hydrologists also lack dataabout the rates of streamflow inmany rivers and streams. Somecommunities have planned totap those water sources duringdrought.

“While (water) numbers arepredicted as firm, they are notexact,” Knapp said. “In themidst of a drought, there will bea lot of stress on communities.What will they do, cut water(use) or risk running out ofwater?” — Kay Shipman

Some city water supplies will dry up in historic drought

State, Will County sue Enbridge over oil spillIllinois Attorney General Lisa Madigan and Will County

State’s Attorney James Glasgow last week sued Enbridge EnergyLimited Partnership alleging it violated state environmental lawsstemming from a Sept. 9 pipeline spill near Romeoville.

“Enbridge must be held accountable for all of the environ-mental and public health impacts of this oil spill,” Madigan saidin a prepared statement.

In the interim, the court issued a provisional order requiringEnbridge to identify and inspect all water mains, sanitary andstorm sewers, private wells, and groundwater within half a mileof the leak; to assess the impact of the oil leak; and to ensureclean-up.

The lawsuit seeks to require Enbridge to pay all of the IllinoisEnvironmental Protection Agency’s response and oversightcosts related to the spill.

This was the second Enbridge pipeline spill this summer inthe Midwest. The first one caused damage in the KalamazooRiver.

Enbridge Pipelines (Illinois) LLC is building a pipeline fromNorthern Illinois to Patoka in Marion County.

Page 4: FarmWeek October 11 2010

ELECTION

FarmWeek Page 4 Monday, October 11, 2010

ELECTION 2010

Constitutional amendment question focuses on recallBY KAY SHIPMANFarmWeek

On Nov. 2, Illinois voterswill vote on an amendmentto the Illinois Constitutionthat would allow voters topetition for a special electionto recall a governor and toelect a successor.

To pass, the measure will

require a favorable vote bya majority of all who votein the election or at least a60 percent favorable vote

on the question.The proposed amendment

would allow any registeredvoter to file with the StateBoard of Elections a noticeof intent to circulate recallpetitions no earlier than sixmonths after the governor’sterm in office begins.

The filing must include an

affidavit with the propo-nent’s signature and those ofat least 10 Democrat and 10Republican state representa-tives and at least five Demo-crat and five Republicanstate senators.

If the Board of Electionsapproves that action, theproponent would have 150

days to circulate petitionsand gather a number of sig-natures equal to at least 15percent of the total votescast in the gubernatorialelection.

Of those signatures, atleast 100 must come from 25different counties.

The Board of Electionsmust certify or reject thepetitions within 100 days.

If the petitions are certi-fied, a special election forgovernor must be held with-in 100 days after the certifi-cation.

If a majority of votersfavors the governor’sremoval in the special elec-tion, the governor is

removed immediately.Petitions must then be cir-

culated for individuals seek-ing to be elected as the gov-ernor’s successor, and a spe-cial election for the succes-

sor must occur within 60days.

Go to FarmWeekNow.comfor more details about theproposed amendment alongwith arguments in favor andagainst the proposal.

FarmWeekNow.com

Editor’s note: This article ispart of Farm Bureau’s “GetOut the Vote” campaign. Thegoal is to encourage FarmB u r e a u m e m b e r s t obecome active in the politi-cal process and elect candi-dates committed to servingagricultural interests.

You can view the secretaryof state’s pamphlet on ther e c a l l a m e n d m e n t a tFarmWeekNow.com.

Dual Senate ballotis ‘no small thing’

A little confusion at the voting booth this Novembercould have major ramifications for Illinois producers, a Uni-versity of Illinois-Springfield political scientist warns.

In an unusual election scenario spurred by an August U.S.District Court ruling, Illinois voters will be asked to votetwice for U.S. Senate on Nov. 2.

In addition to the general election to fill a six-year regularSenate term beginning in2011, a special election isbeing held to fill the “unex-pired term” being vacated bycurrent junior Sen. RolandBurris following the election.

Former Gov. Rod Blagoje-vich appointed Burris to fillnewly elected PresidentBarack Obama’s seat in late

2008.The official November ballot will include the four

statewide candidates seeking the six-year term, followed byan option to select one of the same candidates to fill thevacancy for the unexpired term.

The candidate elected to fill the unexpired term willserve from the time election results are final on Dec. 3 untilthe new Congress convenes Jan. 3.

Theoretically, voting one ballot slate without the othercould result in one candidate taking office in January andanother voting on measures before Congress during a likely“lame duck” session in December.

Candidates for the Senate seat include Democrat AlexiGiannoulias, Republican Mark Kirk, Green Party candidateLeAlan Jones, and Libertarian Mike Labno. The ballot alsoincludes a write-in option.

Christopher Mooney, a professor with U of I’s Institutefor Government and Public Affairs, can recall no such situ-ation occurring, at least at the congressional level, duringhis 15 years of studying the Illinois political scene.

The circumstances “are a little weird, but not unheardof,” and with Congress likely to address some major unfin-ished business following the mid-term elections, Mooneyurges Illinoisans to vote carefully in the Senate race.

“They (Congress) are going to have lame duck sessions inD.C., and they may be doing some significant things there,”Mooney told FarmWeek. “The Bush-era tax cuts might beon the table, and some other things. That is an importantvote.

“I assume people are just going to take two (ballots) andthey’re not going to split their votes, so it’ll be whoeverwins one will win the other. But people ought not justignore it — it’s no small thing.” — Martin Ross

Survey aside, trade generating less ‘drumbeat’?BY MARTIN ROSSFarmWeek

A new Wall Street Journal/NBC poll indi-cates increased public rumbling about freetrade, but an American Farm Bureau Federa-tion (AFBF) election analyst detects littleanti-trade “drumbeat” on the congressionalcampaign trail.

Fifty-three percent of those polled by theJournal and NBC indicated they believe freetrade agreements (FTAs) have hurt the U.S.vs. 46 percent of those surveyed three yearsago.

However, despite post-recession anxieties— a past source of anti-trade sentiment,AFBF public policy specialist Linda Johnsoninstead sees an overwhelming campaignfocus on government spending and domes-tic “jobs and the economy.”

“For once, trade and protectionism don’tappear to be out on the table,” Johnson said.“I’ve not heard that trade’s at the top ofanyone’s agenda out there. I don’t think

there’s a drum-beat at all.”

University ofIllinois Insti-tute for Gov-ernment and

Public Affairspolitical scientist Christopher Mooney said“there was a day when this was a very reso-nant issue — in the NAFTA (North Ameri-can Free Trade Agreement) era, when peo-ple were making movies about Japanese carcompanies and union guys were smashing upHondas and stuff.”

“But it’s really not a big issue this

time,” Mooney said.In recent RFD/FarmWeek interviews, Illi-

nois’ U.S. Senate candidates, Democrat AlexiGiannoulias and Republican Mark Kirk,agreed in general on the economic benefits oftrade, especially for the ag sector.

Kirk argued FTAs with Panama, Columbia,and South Korea would help “roll back someof the gains the Canadians have made againstIllinois in grain sales” and, in the case of cur-rent U.S.-Korea FTA side-talks, help Illinoisbeef producers.

He noted most Columbian products enterthe U.S. duty-free while tariffs are levied onmost U.S. exports to Columbia, stressing tariffreductions on U.S. goods are “almost the soleeffect of a free trade agreement.”

Giannoulias said new market opportunitiesare critical for the U.S. to meet “the growingworld demand for food with American agri-culture” and touted the need to “focus heavilyand invest heavily in exports.”

“If the U.S. does not move quickly, we risklosing market share and opportunities forgrowth to our competitors,” he said.

At the same time, Giannoulias argued freetrade must be “done right so that everyone isplaying by the same rules.”

He said currency manipulation by Chinaand others is “one of the reasons we’ve gotthese ever-increasing trade imbalances,” andurged efforts to “make sure we start seeingmore ‘Made in America’ here in the UnitedStates.”

“Nobody’s arguing about exports — every-body thinks that’s wonderful, unless it’sexporting jobs,” Mooney said. “It’s that otherside of the highway people worry about.”

FarmWeekNow.comL i s t e n t o C h r i s t o p h e rMooney’s comments aboutt h e U . S . S e n a t e r a c e a tFarmWeekNow.com.

Read one view onwhy farmers need

to vote on page 16

Illinois Farm Bureau willhost a one-day equine issuesforum at 10 a.m. Saturday,Oct. 23, at the IFB office,1701 Towanda Ave., Bloom-ington. Advance registration isrequired.

The program is geared forthose who earn a living in thehorse industry, as well asweekend enthusiasts.

Dr. Dennis French, Univer-sity of Illinois veterinary med-

icine professor, will discussthe increase in unwantedhorses, and Brad Schwab,director of the USDA Nation-al Ag Statistics Service Illinoisfield office, will presentoptions for an Illinois equinecensus.

In breakout sessions, par-ticipants will discuss issuesraised by the speakers.

The forum will concludewith participants reconvening

and sharing topics and recom-mendations from each break-out session.

Lunch will be provided.There is no charge for

attendance, but advance regis-tration is required.

Register online by going to{www.ilfb.org/equineforum},call IFB’s Brenda Matherly at309-557-3151, or e-mail yourregistration to [email protected].

IFB to host equine issues forum Oct. 23

Page 5: FarmWeek October 11 2010

ELECTION 2010

FarmWeek Page 5 Monday, October 11, 2010

Major U.S. Senate candidates address issues

How can theSenate reconcile thenation’s growing deficitwith pressing economic,infrastructure, and pro-gram needs?

Kirk: We need to encour-age leaders to spend less andtax less because our trillion-dollar deficit is way too high.

When we look at our infra-structure needs, we need tothink outside the box to makesure that just because we arein a funding crunch doesn’tmean we stop all infrastruc-ture investment. That invest-ment leads to economygrowth.

One of the things that Ihave been surprised at is howwe have forgotten much ofour economy history.

For example, I’ve askedpeople, “What is the No. 1infrastructure project ofPresident Lincoln?” Possiblyhis third greatest achievementafter winning the Civil War

and the EmancipationProclamation was the Trans-Continental Railway Act thathe enacted in 1862.

That was a classic pub-lic/private partnership inwhich the arrangements wereso well designed that a vastamount of private capitalwas attracted to this project,and it transformed the Unit-ed States. This can be doneagain.

We’ve seen this in otherstates. For example, the stateof Indiana and Governor(Mitch) Daniels have beensuccessful with this.

I want to go to the Senateto make sure that as wereduce our deficit, we don’tstop investment and infra-structure but we recall someof the spirit of AbrahamLincoln and the Trans-Conti-nental Railway Act, whichprovided private capital tomake sure the country keptrolling forward.

How can Congress bestensure a future of sustain-able domestic energy inde-pendence? Do climateissues have a place in theenergy debate?

Kirk: I am for a newbipartisan energy indepen-dence bill that will build 50new nuclear power plantsand will give permanent tax

credits to clean, green, andrenewable fuels like ethanol,wind, solar, biodiesel, andhydro.

I’m particularly concernedthat the Congress has given afaint or on-and-off green lightto America’s inventors,because many of these pro-duction tax credits andencouragements only lastbetween three and 10 years.We need to send a permanentgreen light to America’sinventors.

I think it is particularlyimportant to back ethanol andother renewable fuels, becausethere’s a hidden subsidy forforeign oil — the vast amountof blood and treasure that theUnited States has to paythrough the Department ofDefense and our heavy infra-structure to defend the Per-sian Gulf.

Over time, as we builddomestic sources of energy,we don’t have to have thathidden subsidy and the coun-try will be safer.

Every dollar we don’t sendto Saudi Arabia and Iran prob-ably makes us safer in of itself.

I think the consensusbehind (the connectionbetween energy and climatepolicy) has collapsed. Iannounced a year ago that Iwould vote against a cap-

and-trade bill. I think, moving forward,

what we should do is assesshow the carrots can encour-age us, especially Illinois agri-culture, to participate,through ethanol, throughswitchgrass, and through oth-er ways to create clean,American-made energy. I amfor the “all-of-the-above”strategy to help us unhookfrom foreign oil.

How would you stimu-late Midwest economicgrowth, particularly forfarm families and ruralcommunities?

Kirk: Well, No. 1, not raisetheir taxes. Governor (Pat)Quinn has called for a 33 per-cent increase of the stateincome tax.

There were 10 new taxes inthe (federal) health care bill,and I think that has really dis-couraged a lot of small busi-ness decisions to potentiallyhire new people.

And, then, long-term, youwant to upgrade the lock anddam system in Illinois tomake sure we have a greaterand cheaper access to ourkey export port, the Port ofNew Orleans.

Agencies including theU.S. Environmental Pro-tection Agency are advo-cating a greatly expanded

regulatory agenda forfarmers, landowners, andbusinesses? How do youperceive the federal gov-ernment’s regulatory role?

Kirk: I am particularlyconcerned that right nowwe have a one-party stateboth in Springfield and inWashington, with no checksor balances. We need tosend a senator to Washing-ton who will serve as acheck-and-balance.

Especially if the electionsgo the way we think, withmany Republicans beingelected, there is a dangerthat the administration willuse its regulatory power totry to go around Congress.

We will want to makesure that we only have theregulations we need, andthat they make sense and donot pose an overwhelmingcost with little benefit,especially on small businessowners, equipmentproviders, farmers, etc., thatare key to the Illinois econ-omy.

I’ve got to say, Illinoisagriculture is one of ourbiggest successes and ourNo. 1 employer.

My watchword in theSenate is to be the pro-employment senator forIllinois.

Republican Mark Kirk

How can the Senate rec-oncile the nation’s growingdeficit with pressing eco-nomic, infrastructure, andprogram needs?

Giannoulias: I believestrongly that erasing our yearlybudget deficits and payingdown America’s debt should beour No. 1 fiscal priority whenwe rise out of the currentrecession.

My plan is based on fourcommonsense pillars ofreform that will rein in Ameri-ca’s escalating debt and growour economy.

We need to fundamentallychange the way we budget ourtax dollars and impose pay-as-you-go budgeting rules.

Second, we should rebal-ance the tax code so that itbenefits the middle-class andworking Americans, not thebiggest corporations and the

wealthiest Americans. Third, if we are going to

restore standing to our nation’sfinances, we need to takeanother look at the healthinsurance industry and figureout the smartest way to movethat forward.

Finally, we need to put allour options on the table and,you know, heed (U.S. DefenseSecretary Robert Gates’) callto rein in non-essentialdefense spending.

I’ve cut my budget in thestate treasurer’s office. I’ve cutmy personnel by 17 percentfrom where it was under mypredecessor. I know what it’slike to have to deal with bud-gets — real budgets — and Ithink that’s one of the prob-lems in Washington, D.C.

How can Congress bestensure a future of sustain-able domestic energy inde-pendence? Do climate issueshave a place in the energydebate?

Giannoulias: I supportefforts to create a comprehen-sive market-based system thatspurs investment and renew-able energy and new clean-energy jobs.

This can be achievedthrough several different mech-

anisms, including a nationalrenewable energy standard or amarket-based pollution tradingsystem. I think if done correct-ly, this could and should be aboon for farmers.

Carbon sequestration pro-jects like no-till farming andgrassland and rangeland prac-tices that capture carbon willprovide new income.

I think we should extend thetransmission grid to America’srural areas so that we can effi-ciently export wind, solar, geo-thermal, and biofuel resources.

I think it’s important we doeverything we can to ensurewe have sustainable domesticenergy, and I do think climateissues have a place in the ener-gy debate.

We have to move eventuallyto a clean-energy future, and wehave to do it in a way that Ithink will be and can be andshould be helpful to farmers,which are the most importantindustry in the State of Illinois.

Agriculture is the backboneof Illinois’ economy. I under-stand that. I’ve seen it as statetreasurer, and that is somethingI’m going to fight for in theU.S. Senate.

I had a chance to meet withcorn growers when I met with

Democrat Alexi Giannoulias

the Farm Bureau. The biggestconcern I have, the biggestconcern I’ve heard and onethat I will fight for, is toincrease the ethanol blend toat least 12 percent, if not15 percent.

That is the No. 1 concern. Ipromise to take that fight tothe U.S. Senate. I think it’simportant. I do think it doeshave a future and an impor-tant one, especially for a statelike Illinois.

I made that promise and Ithink we need to continue it.

How would you stimulateMidwest economic growth,particularly for farm familiesand rural communities?

Giannoulias: You don’tneed to tell me the recessionhas taken its toll on familyfarms and rural communities. Iget that; I know that.

That’s why my first majoraction as a candidate for theU.S. Senate was to release acomprehensive plan for ruralAmerica that includes provi-sions aimed at protecting thefamily farmer and spurringeconomic development in rur-al communities, like givingfarmers and small businessesaccess to credit, buildinginfrastructure to extend high-

speed Internet to underservedareas, and tapping the fullpotential of wind and biofuelstechnology.

In the state treasurer’s office,I have committed $4 billion inlow-interest agriculture loansover four years — the largestamount ever in a market, morethan any other state in thenation — and have doubledthe amount available to farm-ers for long-term projects,based on feedback from loanprogram users.

I will expand this effort inthe Senate.

Agencies including theU.S. Environmental Protec-tion Agency (EPA) are advo-cating a greatly expandedregulatory agenda for farm-ers, landowners, and busi-nesses? How do you per-ceive the federal govern-ment’s regulatory role?

Giannoulias: I think theEPA has, at times, a difficultjob. We just need to make surethat within their rules and regu-lations, they don’t do thingsthat will harm farmers andfarming families.

We just want to make surethat the regulations aren’t over-bearing on the farmers andtheir families.

G i a n n o u l i a shas served asI l l i no i s s t a t etreasurer since2 0 0 7 . F r o m2002 to 2006,he was seniorl o a n o f f i c e rand vice presi-dent at Chica-go’s BroadwayBank.

Kirk has repre-sented Illinois’10th Congres-sional Districtsince 2001. Hes e r v e d a scounsel to theHouse Interna-t i o n a l R e l a -tions Commit-tee from 1995to 1999.

Page 6: FarmWeek October 11 2010

Bernie Walsh, Durand, Winnebago County: What a differ-ence a year makes. This idealharvest weather we have beenhaving is great, and the TVweather man reminded us thatone year ago on Sunday (Oct.10), we had our first snow of theyear. This year the forecast is for80 degrees. Harvest is definitely

in full swing for both corn and beans. Severalfarmers are finished with their beans, butthere probably is 20 percent left in the field,but by the time you read this there will be a lotless. The soybean yields are holding up verywell with many fields close to 60 bushels peracre, but the moisture has dropped to 8-9percent so there has been some shatter loss.Corn yields I have heard have been variablewith some record yields and some disap-pointing yields on low ground that was waytoo wet. Have a good week and stay safe.

Leroy Getz, Savanna, Carroll County: A very dry week withonly a few sprinkles on Oct. 2.We had frost four mornings in arow. Soybean harvest is nearlyfinished. Yield monitors werereading from 40 to 90 bushelsper acre. We finished our cornon Thursday. Good yields, lowmoisture and no LP. It has been

very dry baling cornstalks, and it was hard tohold the bales together. However, theMississippi River flooding closed the elevatorat Savannah interrupting grain movement.The river has now crested and is receding.

Larry Hummel, Dixon, Lee County: Soybean harvest sure isfun now that the next generationhas joined our operation. Mynephew runs the combine, myson fills the bins, and my brotherand I keep busy helping themmove from farm to farm, fixing tile,and all the other things that popup during harvest. The best part of

it is that I’m usually home by 7:30 p.m. andhave plenty of time to pop some popcorn andwatch a little TV. Soybean harvest is at least80 percent completed in our neck of thewoods with above average yields. Corn iscloser to 50 percent done with average yields.

Joe Zumwalt, Warsaw, Hancock County: Harvest contin-ues during what seems to be thebest stretch of weather that wehave had in the past two years.Except for the late-planted fields,corn harvest is nearly wrappedup. Soybean harvest has been alittle slower, however. Yields havebeen good, but the beans just

don’t want to dry down very fast. Several pro-ducers have finished and are now doingtillage, mowing, and spraying. Harvest does-n’t take long when you can cover a lot ofacres in a day. There is no chance of rain inour forecast so by this week, I’m sure we willa ready for a break and a long nap. Stay safeduring these long hours.

Ken Reinhardt, Seaton, Mercer County: We are enjoying oneof the nicest stretches of weatherfor what seems like years. Manycan see the end of harvest or areeven done. I finished soybeansThursday. Sudden death took itstoll. Fields without it were in themid-60s; those with heavy diseasepressure were in the mid-40s.

There are reports of 70 bushel-per-acre fieldsand some of 30-bushel fields around the area.I started back on corn and found the moisturewas down to 12 percent in some early corn.There is a good article in the latest IPM bulletinfrom the University of Illinois on what wentwrong with corn on corn this year, there areeight things listed.

Ron Moore, Roseville, Warren County: No rain to reportthis past week. Lots of sunshineand dry conditions. Corn harvestis 80 percent done in this areawith below-average yields.Soybean harvest is 60 percentdone with above-average yields.Corn is yielding in the 150- to170-bushel range and soybeans

are averaging in the upper 50s to low 60s.We are not getting the super yields on soy-beans that other areas of the state are get-ting. Lots of fertilizer and tillage are beingdone. With the dry conditions and compact-ed fields from the last two falls, many peopleare doing some deep tillage. We should bedone with our harvest this week.

Tim Green, Wyoming, Stark County: A very dry, warmweek. Corn moisture levels aredown into the 13 percentrange. Harvest is rapidly goingalong. We are getting close to75 percent done. There are stilla few tough green-stemmedbeans out there that wereplanted a little later than others

and aren’t quite ready. Bean yields havebeen really good. It is kind of surprisingthat corn yields can be not as good andbean yields can be so good. I’ve heardbean yields as high as 80 bushels peracre. A lot of fall tillage is being done alongwith conservation work. Hope you have asafe harvest.

Mark Kerber, Chatsworth, Livingston County: Harvestis done in many locations, buta few fields are left to do. Dryground is giving us a chance tocontinue with fall tillage. Istand corrected on the roundspots missing in soybeanfields. It is from voles, notground squirrels. Voles are a

small rodent that resembles a mouse andthrives on small plants. If the weather con-tinues to be nice, many projects will getdone that were put on hold from the wetlast fall. These include tiling, waterwaywork, old fence removal, etc. Markets arewaiting direction from Friday’s supplyreport. There is a lot of investor money thatcould go into commodities resulting inhigher prices.

Ron Haase, Gilman, Iroquois County: The dry weathercontinued and so did theprogress of harvesting andtillage. About 95 percent of thecrops have been harvested inthis area. Forty to 50 percent ofthe tillage also has been com-pleted. Our full-season corn,114-115 day, even dried down

to 14 to 16 percent during the past week.The local closing prices for Oct. 7 were:$4.74 for nearby corn, $4.81 for Januarycorn, $4.38 for fall 2011 corn; $10.31 fornearby soybeans, $10.64 for January soy-beans, and $10.17 for fall 2011 soybeans.

Brian Schaumburg, Chenoa, McLean County: With har-vest nearly complete, farmersare fertilized up, tilled up,cleaned up and putting awayfor the season. A lot of repairsare now being done to tile andequipment that saw the effectsof last year’s stresses. Yieldsranged from the ridiculous to

the sublime with beans above to wellabove average and corn mostly below.Spreads are tightening from December toJuly leaving less carry and more marketingdecisions to be made soon. Corn, $4.75,January, $4.90, fall 2011, $4.36; beans,$10.30, January, $10.47, fall 2011, $10.62;wheat, $6.09.

Steve Ayers, Champaign, Champaign County: A lightfrost was on the pumpkin earlierin the week while combines andtractors continued to roll. Cornharvest is essentially done andbeans will be down to the shortrows by this week. We had ourbest beans ever at 67 bushelsper acre. Some varieties have

tough green stems. Weather continues tohold with a chance of liquid sunshineWednesday described as iffy to spotty.Farmers are busy tilling, tiling, fertilizing, lim-ing, maintaining equipment, seeding wheat,soil testing, and doing conservation work.Still too warm for anhydrous application.Let’s be careful out there!

Wilfred Dittmer, Quincy, Adams County: What anotherbeautiful Friday morning herein our county. As I said a cou-ple weeks ago, maybe we willhave a normal harvest thisyear. I think we are having anear-perfect one as the drydays continue and the dusttrails follow the combines back

and forth across the fields. I think corn har-vest is nearing perhaps 70 percent doneand bean harvest is maybe 20 to 30 per-cent complete. A little tillage is happeningin some of the early-harvested fields and alittle fertilizer also is starting to move to thefields. Have a safe week.

Carrie Winkelmann, Menard County: The only rain wehad during the week was ashort storm on Saturday morn-ing (Oct. 2) that kept us out ofthe field for the morning.Because of the good weather,crops have been disappearingfrom the fields at a fast pace.More people were working on

beans than corn last week, which hasevened up the amount of corn and beansleft in the fields to about 20 percent. Beanyields are good, but not the bumper crop Iwas expecting after scouting before har-vest. Beans definitely are better than corn,though. It will take another good weatherweek to get finished with beans and donewith harvest, which is amazing when Ithink back to where we were last year.

Tom Ritter, Blue Mound, Macon County: Harvest israpidly wrapping up with farless than 10 percent of cornand soybeans left to be har-vested. I’m not even sure ifthere is any standing corn leftin the area. Overall, farmershave been very pleased for themost part with yields of corn,

as well as yield of beans. The beans espe-cially have been outstanding and some ofthe best yields ever. A lot of tillage hasbeen going on as farmers wrapped up anda lot of fertilizer has been applied, but it isway too soon to even be thinking aboutapplication of anhydrous ammonia.Farmers are beginning to slow down a lit-tle bit and relax and looking forward to along winter vs. the very short winter wehad last year.

Todd Easton, Charleston, Coles County: I looked backat the Cropwatcher report Iwrote exactly a year ago and itbegan by commenting on howharvest was having a far-from-ideal start. It seems almostamusing now as we are con-cluding an all-but-perfect har-vest season just a year later.

While corn harvest was convenient for theyear, it was not as bountiful as we wouldhave liked as the crop was dealt an unfairone-two punch with very wet and some-what cool conditions right after emergenceand then a super hot and dry August. Thesoybean crop, on the other hand, went in abit late and looked to be in trouble with thedifficult August also, but late rains in thearea must have been just in time to finishwhat may be the best bean crop manyhave seen in the area. One or two drillscame out this past week and sowed whatlittle wheat seed could be found to startthe next crop out in almost perfect condi-tions.

Jimmy Ayers, Rochester, Sangamon County: Wereceived a small sprinkleSaturday morning (Oct. 2) lastweek. The majority of the crophas been harvested. There issome corn left, probably 10 to15 percent, and beans haveabout 30 percent left. Themajority of the activity last

week was fieldwork. A lot of chiseling andfertilizing going on. Markets are back to aroller coaster ride. Hope you are on theright side of the ride.

Doug Uphoff, Shelbyville, Shelby County: Activities arewinding down. We are going tofinish with our plot today. Thatwill be the last of the soybeansto cut. I would say in the north-ern part of the county every-thing is 95-98 percent done.Fieldwork is 80 percent fin-ished, so we will have time for

some recreational tillage, which hopefullythere won’t be much of, but we are reliev-ing a lot of compaction problems with deepripping. Some tiling and surface drainingrepairs are done. There has been somewheat sown. We put out 28 acres. We willbe waiting to put on anhydrous toward theend of October or the beginning ofNovember. Prices went down, but they arecoming back. A good report came outFriday — ending stocks were lowered.Cash corn, (Decatur prices) $4.98;January, $5.03; fall 2011, $4.61 and that’swith no trucking taken off; Decatur beans,$10.40; cash, $10.83; January/fall $10.42.Have a safe week.

FarmWeek Page 6 Monday, October 11, 2010

CROPWATCHERS

Page 7: FarmWeek October 11 2010

Dean Shields, Murphysboro, Jackson County: We hadanother beautiful week for har-vest and it is moving right along.There is not much corn left in thefield and most people are busycutting beans. Big differencefrom last year when we had tomud everything out. Bean yieldshave been pretty good in places

and not so good in others because of the dryweather and the type of ground the beansare on. Harvest is coming along well. A lot ofwheat is being sown, so our acres might beup from last year. It’s been a good fall so far,and I hope it stays that way and lets us finishup on a good note. Safe harvest and takecare.

Dan Meinhart, Montrose, Jasper County: A couple tenthsof rain fell Saturday morning(Oct. 2). Warm temperatures pre-vailed throughout the week. Lightpatchy frost appeared Sundayand Monday mornings (Oct. 3-4).Harvest is moving right along.The late-May and June-plantedcorn is still carrying moisture. It

will be a week or two before the July-plantedbeans will be ready for harvest. More wheatis being put into the ground. Some of the ear-lier-planted wheat has emerged. Anothermild week is expected.

Ken Taake, Ullin, Pulaski County: Another dry week here indeep Southern Illinois. We’vehad no rain. It’s been really goodfor harvest, but it’s really dry. Weare down to less than 100 acresof soybeans to harvest. We juststarted sowing wheat and thathas been into dust. There is norain in the immediate forecast.

Please remember to be careful during thisbusy season.

David Schaal, St. Peter, Fayette County: On Saturday, Oct. 2,we received some light rain, whichamounted to 0.15 to 0.2 of an inch,which shut down soybean harvestfor that day. It gave farmers a breakto catch their breath. On Oct. 3,farmers were right back to cutting.From then on, we had anotherbeautiful harvest week. Producers

are really gaining on the bean harvest with afew of them finished up. We are hoping to wrapup this weekend (Oct. 9-10). Some wheat sow-ing is going on, along with some fall tillage.Also, farmers are getting a chance to work onsome waterways, cleaning them out andgrooming them. Everyone keep safe for thesmall percentage of the harvest season left.

Kevin Raber, Browns, Wabash County: Harvest is justabout complete. I finishedThursday. As you drive aroundthe countryside, you can find afew bean fields, but I haven’tseen a cornfield for awhile. Thebeans I finished Thursday weredisappointing. They were inlight river bottom soil and made

just 25 bushels to the acre. Wheat sowing isprogressing rapidly. It’s going to take a goodrain to get a good stand.

Page 7 Monday, October 11, 2010 FarmWeek

CROPWATCHERS

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

First freeze no problem; harvest continues to rollBY DANIEL GRANTFarmWeek

Portions of the northern Corn Belt includingNorthern Illinois last week encountered the first frostthis fall, effectively ending the growing season at somelocations.

The situation was of little concern to farmers,though, as the majority of corn (74 percent) and halfthe soybeans were in the bin in Illinois as of the firstof last week.

Meanwhile, the majority of the crops remaining inthe field are safe from frost (98 percent of corn ismature and 97 percent of soybeans have turned yel-low), according to the National Agricultural StatisticsService Illinois field office.

“If this was last year (when only 5 percent of cornand soybeans were harvested as of Oct. 4) we’d all beup in arms (about the frost),” said Jim Angel, state cli-matologist with the Illinois State Water Survey.

Ideal weather conditions so far this fall allowedfarmers to harvest their crops at a torrid pace. Thestatewide average temperature in September was 66.8degrees, 0.6 of a degree above normal.

“We are enjoying one of the nicest stretches ofweather for what seems like years,” said Ken Rein-hardt, a FarmWeek Cropwatcher from MercerCounty. “Many can see the end of harvest or aredone.”

The National Weather Service outlook thismonth called for increased odds of warmer and dri-er-than-normal conditions across Illinois. In fact, it’sbeen so warm and dry at some locations that severalcounties in Southeastern Illinois are in “moderatedrought,” based on the U.S. Drought Monitor.

“This has been extraordinary to have such a longstretch of very mild weather,” Angel said. “A highpressure system has been the dominant factor” behindthe warm, dry conditions in the Central U.S., he said.

In fact, high temperatures late last week and intothe weekend pushed or surpassed the 80-degree markat some locations.

The warm spell, while good for harvest, could delayapplications of anhydrous ammonia, which are notrecommended in the fall until the soil temperature is ator below 50 degrees on a consistent basis.

“You can’t look at the calendar this year and say

it’s time to put on fall anhydrous,” Angel said.“You’ve got to watch the soil temperature. Obvious-ly it’s going to stay high until we get cooler weather.”

Soil temperatures at the four-inch level in the stateas of Friday were between 58 and 60 degrees, Angelreported. Farmers can check soil temperatures at thewebsite {www.isws.illinois.edu} and click “data” fol-lowed by “soil temperatures.”

Don Guinnip last week near his home in rural Marshall in Clark County was planting the first of 40 acres of wheat heplans to sow this fall. Twenty percent of the winter wheat crop was seeded statewide as of the first of last week comparedto 6 percent at the same time last year. Guinnip described his corn yields as average and said he was finding his soy-beans were yielding only average to below average. He is waiting until it dries out a bit more to harvest his milo crop.(Photo by Ken Kashian)

New IDOA brochure offers anhydrous safety tipsThe Illinois Department of Agriculture (IDOA)

and Illinois Fertilizer and Chemical Association(IFCA) are urging farmers and agrichemical dealersto take precautions when applying anhydrousammonia fertilizer.

To remind farmers and agrichemical dealers ofthe proper safety procedures for anhydrous applica-tions, IDOA and IFCA have developed a brochurethat highlights common transportation and applica-tion mistakes.

Accidents that occurred last spring are featured indetail, followed by recommendations on how theymight have been prevented.

“Safety and stewardship are equally importantwhen it comes to anhydrous ammonia application”

IFCA President Jean Payne said. “This is a productthat is always under scrutiny, and thus everyoneinvolved in the storage, transportation, and applica-tion of ammonia is responsible for ensuring the safeand proper use of this important plant nutrient.”

“Late and wet harvests the past two years left lit-tle time for farmers to replenish the nutrients intheir fields before spring,” said Agriculture DirectorTom Jennings. “With the prospect of an early har-vest this year, they understandably may be anxiousto get started on preparations for nextyear. However, it’s still a bit premature to startapplying ammonia.”

According to the University of Illinois AgronomyHandbook, anhydrous applications should not begin

before the second week of October in Northern Illi-nois or before the third week of October in CentralIllinois. Fall-applied nitrogen for corn is discouragedentirely in Southern Illinois south of Route 16.

Soil temperatures should drop to 50 degreesFahrenheit before fall nitrogen is considered.

Daily, four-inch soil temperatures are availableonline at {www.ifca.com.} The site also shows soiltemperature trends.

IFCA will distribute the brochure at its fall anhy-drous ammonia safety schools. It also will makecopies available to Illinois fertilizer dealers to sharewith their farmer customers. IFCA also will post thebrochure and a 12-minute safety video on its web-site.

Page 8: FarmWeek October 11 2010

MARKETS

FarmWeek Page 8 Monday, October 11, 2010

Merrigan: ‘All of agriculture’ being challengedBY KAY SHIPMANFarmWeek

American farmers havetheir work cut out for them,no matter if they farm organi-cally or conventionally, butUSDA is working to expandmarkets here and abroad andis trying to revitalize ruralcommunities to help farmerssucceed, according to DeputyAgriculture Secretary KathleenMerrigan.

“All of agriculture — whenwe look to the future — isbeing challenged. We’re goingto have to produce more foodto meet a growing world’spopulation, and we’re going tohave to do so probably withlimited water,” Merrigan toldFarmWeek.

Last week in Chicago, Mer-rigan highlighted USDA’sefforts to improve schoollunches and to discuss sustain-able food production as ameans to feed the world’sgrowing population.

Merrigan said sustainabilitywill require agricultural inno-vation to meet many chal-

lenges: “Sustainability meanseconomic, social, and environ-mental hope. And we need allthree to succeed.”

Midwestern farmers willcontinue tobe “champi-ons in theexport mar-kets,” andUSDA willcontinue itswork onexport mar-kets for those

farmers, she explained. Merrigan noted U.S. agricul-

ture has had a positive tradebalance for nearly 50 years —a milestone marked by fewother industries. This year,U.S. agriculture expects toachieve its second-largestexport year in history —$107.5 billion.

Meanwhile, some Midwest-ern farmers are seeking oppor-tunities in domestic marketsthat include regional and localfood systems, Merrigan added.

For example, USDA isworking to develop a farm-to-

school program that wouldhave local growers sellingdirectly to their schools. Mer-rigan admitted that type ofmarketing is not easy.

USDA wants to learn fromgrowers and schools that havesuccessful partnerships and toreplicate “the dos and don’tslessons around the country,”she said.

An additional benefit of afarm-to-school programwould be to help young peoplelearn how their food is pro-duced and connect them withfarmers, she noted.

In addition to marketingstrategies, USDA also is help-ing farmers experiment withsuch practices as hoop housesto expand their growing sea-son and their markets.

This year, about 2,700farmers nationwide, includingsome in Illinois, participated inan Environmental QualityIncentive Program pilot pro-ject to compare hoop houseproduction with traditionalpractices.

USDA also realizes the ag

economy depends on vital rur-al communities and “wants tobroaden our concept of thefarm safety net,” Merrigansaid. Even if farm incomesincrease, farmers need goodrural schools and communitiesand access to health care, sheexplained.

“We’re building rural com-munities, revitalizing ruralcommunities so they’re placespeople want to stay and

encourage their children tostay and raise a family,” Merri-gan said.

Merrigan assured Illinoisfarmers that she and Agricul-ture Secretary Tom Vilsackvalue their hard work and areworking hard on their behalf:“Americans should be exceed-ingly grateful for the work offarmers and ranchers ... We’reworking our hardest to doright by their hard work.”

Kathleen Merrigan USGC: No bumper crop in China; U.S. corn exports could growBY DANIEL GRANTFarmWeek

Leaders of the U.S. Grains Council (USGC) believe Chinain the future will continue to be an importer of corn afteryears as a net exporter.

USGC this month conducted its annual China corn tour andprojected corn production there will grow from estimates of135 million metric tons to 155 million metric tons (5.3 billionto 6 billion bushels) last year to about 158 million metric tons(6.2 billion bushels) this season.

However, the slight bump in corn production (acreage inChina this season increased 2 percent compared to last year)likely will not be enough to meet Chinese corn demand in thefuture.

“Production is up, but it’s not a bumper crop,” said ThomasDorr, president and CEO of USGC.

“We’re of the view longer-term that demand for corn inChina will grow substantially,” he continued. “It’s a significantopportunity.”

China this year could import 2 million to 3 million metrictons of corn (78 million to 117 million bushels) from the U.S.,and Dorr believes China will import another 3 million metrictons of corn in 2011.

But China’s need for corn imports could balloon to as muchas 15 million metric tons (585 million bushels) by 2015, Dorrsaid.

“It’s very evident demand for feed and livestock productionis growing consistently (in China)” at about 3 to 5 percent peryear, Dorr said.

Meanwhile, China’s ability to significantly boost corn pro-duction is hampered in part by issues with seed quality andinsect pressure, according to David Howell, a USGC Asia advi-sory team leader who took part in this year’s China corn tour.

USGC estimated China’s corn crop this year will yield any-where from 80 to 95 bushels per acre.

“They have a lot of lodging and a lot of insect damage,”Howell said. “The average (Chinese) farmer has one to twoand a half acres and an income of just $500 per year.”

The challenges to increase U.S. corn exports to Chinainclude trade-rate quotas and infrastructure limitations. U.S.corn competes with soybeans and distillers dried grains(DDGs) for cargo space.

“We think the demand growth for corn in China will staystrong but, much like soybeans early on, it will probably strug-gle in spurts,” Dorr said.

“We’re going to have to continue to focus on developinginfrastructure,” he continued. “Unless we do that, we’ll behard-pressed to service those markets” in Southeast Asia.

Chinese demand for DDGs is expected to grow as wellbecause DDGs are not covered by quotas in China, whichmeans there are no limits on imports of the ethanol byproduct.

Page 9: FarmWeek October 11 2010

EDUCATION

FarmWeek Page 9 Monday, October 11, 2010

SOYBEANP R E M I U M S . O R G

Growing Specialty Soybeans Makes More “Cents!”

Increasing your profit doesn’t always mean increasing the amount of land devoted to soybeans. By selling differentiated soybeans, you can bring in extra revenue without having to expand acres. Customers are looking for quality soybeans, and farmers choosing to grow unique varieties can receive a higher return price. Isn’t it time you looked into getting more per bushel?

Visit soybeanpremiums.orgto see what premium programs are in your area.

Funded by the soybean checkoff.

Bob Crawford, supervising farm foreman for Illinois State University (ISU), discusses research cattle on theuniversity research farm near Lexington. Last week, the ISU Agriculture Department offered a farm tour tokick off the celebration of its centennial. (Photo by Kay Shipman)

Centennial countdown

Illinois State University eyes future, marks pastBY KAY SHIPMANFarmWeek

Illinois State University (ISU) is educating agriculture’s futureleaders while preparing to celebrate its agriculture department’saccomplishments over the past 100 years.

Last week on the research farm near Lexington, ISU adminis-tration, faculty, students, and alumni began the countdown forthe ag department’s centennial celebration in 2011.

“ISU always prides itself on providing students with a well-rounded education, especially practical application,” ISU Presi-dent Al Bowman told FarmWeek.

Bowman noted the research farm and teaching laboratoryprovide practical application forag students and serve as majorassets for the university.

“The (ag department’s) mostvaluable product is the experi-ence students gain,” Bowmantold the gathering.

This fall, ISU continued toattract more agriculture stu-dents, according to Rob Rhyk-erd, department chairman.Enrollment grew 10 percent fora total of 322 undergraduates

and 21 graduate students.Growth also has been accommodated on ISU’s research farm,

which was bought in 2000 and dedicated two years later, said JeffWood, dean of the college of applied science and technologyand an agriculture education professor. It is the university’s thirdfarm.

ISU’s first research farm was in Normal near the current loca-tion of the Ropp Agricultural Building, Hancock Stadium, Red-bird Arena, and the Tri-Towers dormitories.

After the original farm buildings became obsolete, the univer-sity farm in 1962 was moved onto land in north Normal alongGregory Street. In 2000, ISU sold 132 acres and bought the landnear Lexington.

To financially support the research farm as well as ag scholar-ships, the Horticulture Center, and special projects, the ISU AgAlumni Association has started a special “100 by 100” fundrais-ing campaign, said Bill Graff, Ag Alumni president and a LoganCounty farmer.

“We are grateful for the education we received and want thatto be available for future (students),” Graff said.

ISU ag at a glanceIllinois State University

agriculture department facts:• 322 undergraduate stu-

dents• 21 graduate students• 28 faculty and staff• $500,000 received annu-ally for research• $40,000 in scholarshipsawarded annually

Illinois to offer 4-H license plateThe Illinois 4-H Foundation moved a step closer to creating a

4-H specialty license plate after Gov. Pat Quinn signed legisla-tion officially endorsing the plate this year.

According to state criteria, the secretary of state must receive1,500 requests for the 4-H specialty plate before production canbegin.

Specialty license plates are authorized by Illinois law with theprimary goal of raising money for an organization.

“This license plate will not only give more visibility to the 4-Horganization and 4-H Clover, but also serve as an ongoingfundraiser for Illinois 4-H youth programs,” said Angie Barnard,director of the Illinois 4-H Foundation.

To request an Illinois 4-H license plate, submit the requestform, available online at {www.4hfoundation.illinois.edu} and a$25 check made payable to the secretary of state. The non-refundable fee will directly support Illinois 4-H youth programsstatewide.

After 1,500 requests have been received, supporters will benotified when the plate becomes available. However, those whorequest the license plate will not be obligated to buy one upon itsrelease.

Page 10: FarmWeek October 11 2010

ENERGY

FarmWeek Page 10 Monday, October 11, 2010

FSA seeks rural input on biofuels strategyBY MARTIN ROSSFarmWeek

Powered by the president’srenewed endorsement ofethanol, USDA is outlining aroadmap for nationwide biofu-els development with Illinois asa key stop.

USDA has outlined a potentialplan to develop “a successful bio-fuels market” capable of achiev-ing the U.S. renewable fuels stan-dards (RFS2) mandate of produc-ing and delivering an annual 36billion gallons of renewable trans-portation fuel by 2022.

In an effort to assess thedraft plan — purportedly “acomprehensive regional strate-gy to help recharge the ruralAmerican economy” —USDA’s Farm Service Agency(FSA) is seeking input from“rural America” at a late Octo-

“very diverse authority” overbiomass/biofuels develop-ment under the 2008 farm billenergy title (outlined in anaccompanying story). Heacknowledged “there are a lotof infrastructure challenges ingetting product to the user.”

“We are going to continue tosupport Generation One devel-opment of (corn-based) biofuels,as well as Generations Two andThree,” he pledged, referringrespectively to non-corn kernelfuel sources and third-generation“drop-ins” — bio-based fuelsthat could be used without blend-ing into gasoline or diesel fuel.

The prospect of a pure“biogasoline” excites EricRund, a Pesotum farmerengaged in his own trials togauge potential production ofswitchgrass as an energy crop.

Rund, who has traveledrepeatedly to South America,noted “Brazil was in the U.S.looking for ethanol last year,”and envisions global as well asdomestic markets for expandedbiofuels production.

He stressed the need for newag opportunities amid an increas-ingly volatile livestock markets. “Iused to feed hogs,” the Cham-paign County producer related.

ber invitation-only meeting atthe Illinois Farm Bureau Build-ing in Bloomington.

USDA goals include compil-ing practical knowledge to guidebiofuel crop production and iden-tifying challenges and opportuni-ties in feedstock development.

USDA’s biofuels planningprocess involves FSA, RuralDevelopment, the NaturalResources Conservation Ser-vice, the Forest Service, and itsOffice of the Chief Econo-mist and Office of EnergyPolicy and New Uses.

In addition, USDA, the U.S.Environmental ProtectionAgency, and others are workingto devise future energy strategythrough a White House-autho-rized Biofuels InteragencyWorking Group.

During an October meeting of

the Renewable Fuels Association,Heather Zichal, deputy assistantto the president for energy andclimate change policy, called cornethanol “a critically importantrenewable fuel source.“

She also hailed efforts to“accelerate the creation andrapid deployment of advancedbiofuels” — potentially “one ofthe nation’s most importantindustries in the years to come.”

USDA Director of Alterna-tive Energy Policy Bill Hagy toldIFB Leaders to Washingtonrecently that the existing ethanolindustry is “about built out”under the RFS2’ 15 billion-galloncap on corn-based fuel use, butsuggested emerging biofuelssources will fuel new rural indus-tries, jobs, and other componentsof the “new clean economy.”

Hagy noted USDA has

USDA offers broad supportfor next-gen feedstocks

The 2002 farm bill set the stage for agriculture’s movebeyond food and fiber into a new frontier — fuel — withintroduction of a new energy title.

The 2008 farm bill authorized USDA to power producerstoward the next generation of homegrown fuels. In 2009, theWhite House ordered rapid deployment of the fuels, USDA Direc-tor of Alternative Energy Policy Bill Hagy told Illinois producers.

“We have programs in the farm bill that can work with theag producer in raising energy crops, harvesting and storingthem, getting them to a (biofuels) conversion facility,” Hagy cit-ed. “We have programs that can finance conversion facilitiesand then programs that help support the deployment of thefinished product to the end user.”

Among USDA’s suite of biofuels/bioenergy programs:• The Biomass Crop Assistance Program (BCAP) aims to

help producers grow new biomass crops and support the costsof harvesting, storing, and transporting energy crops or cropresidues such as corn stover.

USDA received 25,000 comments on draft BCAP rules, andfinal rules should be released this fall. “We’re very close; we cansee the light at the end of the tunnel,” Hagy said.

• The Biorefinery Assistance Loan Guarantee Program tar-gets the next step in biofuels production, guaranteeing loans ofup to $250 million for development, construction, and/orretrofitting of commercial biorefineries. Construction of a 40million-gallon-per-year “second generation” biorefinery costs$320 million on average, Hagy estimated.

Two guarantees already have been approved — one for aGeorgia facility under construction that will convert woodybiomass into ethanol; the other to a California firm that plansto convert algae to biodiesel and multi-use “bio-crude” in newNew Mexico. Five other applications are under review.

• Making green production greener is the goal of theRepowering Assistance Program (RAP), which provides pay-ments to existing biorefineries to replace fossil fuels used toproduce plant heat or power with renewable biomass.

The president recently awarded Nevada’s Lincolnway Ener-gy the first $1.9 million RAP award to convert its coal-poweredethanol plant for wood and other biomass use.

• The Bioenergy Program for Advanced Biofuels providespayments to eligible producers to support expanded productionof cutting-edge biofuels.

“There’s no competition for the funding,” which helps off-set operational costs in producing next-generation fuels, Hagystressed. Roughly $80 million in 2010 funding soon will be dis-tributed among the pool of eligible program applicants.

• The Rural Energy for America Program (REAP) supports“proven” renewable energy sources, including wind or geother-mal energy, biodiesel, and anaerobic digesters, through grantsand loans for producers and businesses.

All sizes of operations qualify for REAP benefits, whichalso can be used to conduct farm/rural business energy audits.More than 4,000 awards have been granted since 2003.

• USDA’s Biomass Research and Development can help fundstudy of and pilot/demonstration plants to produce cutting-edge fuels. Last year, 10 recipients were selected from among900 applicants; final selections are being made for shares of thisyear’s roughly $33 million in program funding. — Martin Ross

U of I eyes ethanol credit optionsThe 45-cent-per-gallon Volumetric Ethanol

Excise Tax Credit (VEETC) currently providedto gasoline blenders who use corn-basedethanol expires Dec. 31, and biofuels propo-nents are concerned whether a post-election“lame-duck” Congress will extend the credit.

To help address the issue, two land-grantuniversities are suggesting use of a “variable”credit for blenders.

Illinois Corn Growers Association PresidentTim Lenz sees VEETC, combined with federalapproval for higher ethanol gasoline blends, ascrucial to meeting federal renewable fuels stan-dard (RFS2) mandates for future biofuels use.

He noted E12 (12 percent ethanol) or E15(15 percent ethanol) blends are necessary tospur continued blending by fuel suppliers“already up against the (10 percent) blend wall.”

But Lenz argues the credit is still importantto continued manufacturer/investor confidenceand thus to post-recession recovery and expan-sion within the industry.

“If it helps another ethanol plant get built orhelps keep one from closing, then it does havean effect,” he told FarmWeek.

In the midst of debate over the credit and itsperceived taxpayer “costs,” University of Illinoisag economist Mindy Mallory and her colleagueshave compared the effectiveness and federalcosts of the existing “fixed” credit and variationsof a possible “variable” ethanol subsidy thatwould adjust credits based on market conditions.

Purdue University economists have proposeda variable blenders’ credit based on the price of

crude oil, with tax credits inversely related tothe price of crude oil. Per-gallon credits wouldrise as oil prices dropped, ideally makingethanol blending more advantageous even withlow-priced oil and/or gasoline.

U of I economists have devised a variable“blend margin proxy” credit based on gasolineand ethanol rather than on crude prices. Thatapproach “more closely approximates the deci-sion variable that blenders would use whenthey’re deciding whether or not to blendethanol,” Mallory said.

Currently, the fixed credit’s key function is toencourage ethanol use to meet federal renew-able fuels mandates, especially “when it would-n’t be economical due to normal market forcesto blend ethanol,” she said.

A variable credit would help bolster blendermargins during those periods while conservingfederal revenues when the energy marketalready is “supportive” of ethanol use, she toldFarmWeek.

“When we do some simple calculations, theprogram’s a little less costly under a variablecredit using the blend margin proxy,” Mallorysaid. “There are many, many different compo-nents that go into final blended gasoline, and touse just gasoline and ethanol is still a simplisticapproach.

“But it’s a little cleaner than using crude oilprices. You’re paying the credit when the indus-try needs some support, and you’re not paying itwhen the industry’s doing fine on its own.” —Martin Ross

The U.S. Environmental Protection Agency(EPA) has attempted to charter the future ofdomestic biofuels development and use throughthe nation’s renewable fuels standard (RFS2).

At the same time, USDA is eyeing the nationaland regional logistics necessary to assure agricul-ture’s share of the 36 billion gallons of biofuelsuse by 2022 can be met (see accompanying sto-ry).

The two agencies nonetheless offer slightly dif-fering views of the feedstock mix that will powerongoing ethanol/renewable diesel production:EPA

Corn starch ethanol — 15 billion gallons (a setthreshold under the RFS2)

Switchgrass and other perennial grasses —7.9 billion gallons

Crop residues (corn stover, wheat straw, etc.)— 5.5 billion gallons

Soy biodiesel and corn oil — 1.34 billion gallons

Animal fats and yellow grease — 0.38 of a bil-lion gallons

Woody biomass (forestry residues) — 0.1 of abillion gallons (does not include short-term woodycrops)

Algae — 0.1 of a billion gallonsOther sources (municipal solid wastes etc.) —

2.6 billion gallons USDA

Corn starch ethanol — 15 billion gallons Dedicated energy crops (perennial grasses,

energy cane, biomass sorghum) — 13.4 billiongallons

Crop residues — 4.3 billion gallons Woody biomass (logging residues only) — 2.8

billion gallons Oilseeds (soy, canola, etc.) — 0.5 of a billion

gallons USDA’s calculations did not factor in animal

fats, municipal solid wastes, or algae.

The blend well: The renewable future

Page 11: FarmWeek October 11 2010

IFB IN ACTION

FarmWeek Page 11 Monday, October 11, 2010

©2010 GROWMARK, Inc. A11423_6x8_aod

®

IFB announces GRITs members for 2011Farm Bureau members

recently were named to Illi-nois Farm Bureau GrassRootsIssue Teams (GRITs) for2011. This marks the 15thconsecutive year for GRITs.

The goal is to provide IFBwith feedback on marketing,technology, regulatory, andrural issues, as well as to gen-erate new approaches to prob-lem solving and policy devel-opment.

Each year following GRITsappointments, IFB also sub-mits nominations to theAmerican Farm Bureau Feder-ation for assignments to itsadvisory committee.

Illinois nominees areselected from current and for-mer GRITs members, whenpossible, to enhance continu-ity in the problem-solving andpolicy-development processesat the state and national levels.

Team members and thecounty Farm Bureaus theyrepresent are as follows:

Hugh Moore, Jersey; GeorgeObernagel, Monroe; DouglasScheider, Stephenson; andDavid Taylor, Will.

Rural life: Donald Duvall,White; Steven Fourez, Vermil-ion; Scott Halpin, Grundy,District 5 IFB director;Annette McLane, Jo DaviessCounty Farm Bureau manager;Frederick Meyer, Tazewell;Deborah Moore, Warren-Hen-derson; Carleen Paul, Madi-son; Robert Pharis, Logan;Emmett Sefton, Macon; Nor-bert Soltwedel, Effingham;Steven Weber, Henry; DavidWhite, Wayne; and LindaWikoff, Knox.

Risk management andfarm programs: DwayneAnderson, Henry; KatieBoruff, Henry County FarmBureau manager; KennethDalenberg, Champaign; Ran-dall DeSutter, Knox;Christopher Gould, Kane;Dale Hadden, Cass-Morgan,District 10 IFB director;William Harmon, Peoria;Richard Heinz, Peoria; MarkHines, McLean; KevinMiller, Effingham; CindyMyer, Madison; Fred

Reichert, Sangamon; andJames Ufkin, Henry.

Renewable resources andenergy: Robert Baumgart,White; James Burns, Winneba-go; Andrew Goleman, Sanga-mon; Douglas Gucker, Piatt;Chris Hausman, Champaign,District 12 IFB director; TionaKimble, Marshall-Putnam;Jake Lieb, Piatt; Glenn Meyer,Randolph; Brian Niemann,Montgomery; Dwight Ring-hausen, Calhoun; Blake Roder-ick, Pike County Farm Bureaumanager; Eric Rund, Cham-paign; and Douglas Wilson,Livingston.

Specialty crops andlabor: Donald Ahrens, Gal-latin; Frank Carlson, Kane;David Daniken, Bond; JustinDurdan, LaSalle; BarbaraGard, Clark; Glenn Gindler,Madison; Bruce Johnson,Stephenson County FarmBureau manager; J.C. Pool,Hamilton, District 17 IFBdirector; Richard Ramsey,Sangamon; Wayne Sirles,Union; Richard Steiner,Tazewell; Craig Tanner, Mar-shall-Putnam; and FredVangeison, Christian.

Conservation and naturalresources: Roger Christin,Winnebago County FarmBureau manager; StanleyCrites, Richland; RichardGates, White; Lewis Hollis,Johnson; James Koeller, Pike;Tom Leeper, Adams; LonialLovellette, Grundy; JonathonManuel, Piatt; John Reitmeier,Champaign; Carolyn Simpson,Sangamon; Stanley Sipp, Piatt;Troy Uphoff, Shelby, District11 IFB director; and DavidWessel, Cass-Morgan.

Crop production andtrade: Timothy Baer, Tazewell;Danelle DeSmith, Lee CountyFarm Bureau manager; MarkElliott, Livingston; DavidHeadley, Fulton; David Meiss,McLean, District 7 IFB direc-tor; James Raben, Gallatin;Ronald Schoenholz, Lee; EarlSorrells, Montgomery; StevenStallman, Randolph; GrantStrom, Knox; Roger Sy, Edgar;Ken Vancil, McDonough; andKyle Winkelmann, Menard.

Equine: Richard Curd,White; Raymond Elder, Chris-tian; Garry Jenkins,Williamson County FarmBureau manager; Gerald Kop-ping, Cook; Sam Lilly,DuPage; Sara Rhoades, Cham-paign; David Sadler, Vermil-ion; Chad Schutz, Greene,District 15 IFB director; andDuane Strunk, Champaign.

Livestock and dairy:Tasha Bunting, Grundy Coun-ty Farm Bureau manager;William Carlberg, Fulton; PatDumoulin, DeKalb; JamesEndress, Stephenson; RichardHurst, Macoupin; NateJanssen, Lake; Mike Kenyon,Kane, District 1 IFB director;Ray Krausz, Clinton;Lawrence Larson, Winnebago;

Change in screening programannounced for IFB members

Participants in the drug and alcohol screening program for-merly run by the Illinois Agricultural Service Co. should nowcontact the Midwest Truckers Association (MTA) of Springfield.

MTA has been Illinois Farm Bureau’s service contractor ofthe program since its inception. The screening pertains to feder-al drug and alcohol screening regulations.

As of Oct. 1, the day-to-day interaction with participants inthe program has been turned over to MTA, according to KevinRund, IFB senior director of local government.

For enrollment and testing, participants no longer shouldcontact IFB. Instead they should contact MTA and make itknown that they are a member of IFB.

General questions about federal drug and alcohol screeningregulations may be addressed to MTA. If the question is specificto farmers, Rund will continue to field those inquiries.

The address and telephone number for MTA is: MidwestTruckers Association, 2715 N. Dirksen Parkway, Springfield, Ill.,62702. The telephone number is 217-525-0310.

Page 12: FarmWeek October 11 2010

FarmWeek Page 12 Monday, October 11, 2010

Page 13: FarmWeek October 11 2010

FROM THE COUNTIES

FarmWeek Page 13 Monday, October 11, 2010

Auction CalendarThurs., Oct. 14. 10:30 a.m. 75 Ac.

LaSalle Co. Farmland. Roseland HintonTrust, SENECA, IL. Auctioneers: Dick

McConville and Marty McConville.www.biddersandbuyers.com,

www.mcconvillerealty.com, [email protected]

Thurs., Oct. 14. 1 p.m. 160 Ac. IroquoisCo. Land. Robert Randolph Estate, PAX-

TON, IL. Schmid Auction & Realty Co.schmidauction.com

Sat., Oct. 16. 10 a.m. Public Auction.James F. Ribordy Estate, Joyce E.Ribordy, PONTIAC, IL. Immke and

Bradleys’ Auction Service. biddersand-buyers.com/immke

Wed., Oct. 20. 7 p.m. 107 Ac.Sangamon Co. Tomlin Bros., PLEAS-ANT PLAINS, IL. Middendorf Bros.

Auctioneers and Real Estate.www.middendorfs.com

Thurs., Oct. 21. 10 a.m. 73.1 Ac.Bureau Co. Martin Farm, LADD, IL.

Auctioneers, Joe McConville and MartyMcConville.

www.mcconvillerealty.com,www.biddersandbuyers.com, auc-

[email protected]., Oct. 21. 10 a.m. 80 Ac.

Livingston Co. Robert W. Brown andSusan K. Brown et. al., Immke and

Bradleys’ Auction Service. biddersand-buyers.com/immke

Sat., Oct. 23. 9:30 a.m. Farm machineryand miscellaneous. Walter and BettyStephens Estate, CONGERVILLE, IL.

Schmidgall Auction Services, Inc.www.topauctions24-7.com/schmidgall or

schmidgallauctions.comSat., Oct. 23. 10 a.m. Farm Land

Auction. Heil Farm, SIBLEY, IL. BillKruse, Auctioneer.

Wed., Oct. 27. 98.72 Ac. Jefferson Co.

Soy Capital Ag Services.www.soycapitalag.com

Thurs., Oct. 28. 6 p.m. 394 Ac.Schuyler and Adams Co. Rowland

Farms, GOLDEN, IL. SullivanAuctioneers, LLC.

www.sullivanauctinoeers.comThurs., Oct. 28. 7 p.m. 80 Ac. White Co.

Wayne and Deanna Williams,GRAYVILLE, IL. Carson Auction, Realty

& Appraisal Co.www.carsonauctionandrealty.com

Fri., Oct. 29. 10 a.m. 117.3 Ac.Macoupin Co. Estate of Ernest Glenn

Slightom, ATWAER, IL. Glenn E. Karrick,Auctioneer.

Fri., Oct. 29. 10 a.m. Land Auction HallCo., NE. GRAND ISLAND, NE. FarmersNational. www.farmersnatinoal.comSat., Oct. 30. 10:30 a.m. 116.68 Ac.

Rock Island Co. Jane T. Olson, Mary L.Spohnoltz, Eileen T. Grosso, BUFFALO

PRAIRIE, IL. Steve RelanderAuctioneer/Farm Broker.

www.relanderauctions.comMon., Nov. 1. 10 a.m. 239.61 Ac.

Woodford Co. Jones Family Farm, ELPASO, IL. Terry Wilkey Auction Service.

www.terrywilkey.comMon., Nov. 1. 10:30 a.m. 137.54 Ac.

Vermilion Co. Womacks Estate, ROYAL,IL. Gordon Hannagan Auction Co.

www.gordyvilleusa.comWed., Nov. 3. 10 a.m. 40 Ac. MoultrieCo. Trust of John E. Reuss, c/o Scott

State Bank Trustee, BETHANY, IL. bid-dersandbuyers.com-keyword-lamendola.

autionzip.com-ID #5614Wed., Nov. 3. 960 Ac. Lee Co. Soy

Capital Ag Services.www.soycapitalag.com

Fri., Nov. 5. 10 a.m. Farmland Auction.Suzanne Pennington, DELAVAN, IL.

Nehmelman Auction Co.

BUREAU — Bureau,Henry, and Stark Coun-

ty Farm Bureaus, and MikeTaylor, and Ron Behrends,Country Financial agents, willsponsor a defensive drivingcourse from 10 a.m. to 3 p.m.Tuesday and Wednesday, Nov.9-10, at the Black Hawk Col-lege Community EducationCenter, Kewanee. Both daysmust be attended to receivecertification. Cost is $30,which includes materials andlunch. Call the Farm Bureauoffice at 815-875-6468 byMonday, Nov. 1, for reserva-tions or more information.

• Bureau, Henry, Knox, andStark County Farm Bureausand the respective Universityof Illinois Extension units willsponsor a fall equine seminarseries the first three Thursdayevenings in November from6:30 to 8:30 p.m. The sessionsare free for 4-H members,FFA members, and BlackHawk students. Cost for oth-ers is $9 or three sessions for$20. Call the Farm Bureauoffice at 815-875-6468 byMonday, Nov. 1, for reserva-tions or more information forthe first session on Nov. 4.

HANCOCK — TheMemorial Hospital

fundraiser — October Moonbarn dance — will be from 6p.m. to midnight Saturday atthe Sullivan Auction Barn,Hamilton.

• A “Share the Harvest”program will be at 2 p.m. Sun-day, Oct. 17, at the Minor Gar-relts farm, 1256 E CountyRoad 1800, Hamilton. Call theTrinity Lutheran Church at217-357-2468 for more infor-mation.

• It’s dues renewal time.

Those who did not receivetheir renewal notice shouldcall the Farm Bureau office at217-357-3141.

JACKSON — The Dis-trict 18 Equine Commit-

tee will sponsor an equineseminar at 6 p.m. Tuesday,Oct. 26, at the Southern Illi-nois Sale Barn, Goreville. RonBeasley, a veterinarian, andMatt Jenkins, a farrier, will bethe speakers. Admission isfree. Call any Farm Bureau inDistrict 18 for reservations.

LASALLE — FarmBureau has added a new

discount to its list of localmembership discounts.Woody’s Steakhouse, 1321LaSalle St., Ottawa, is offeringa free dessert with purchase ofan entrée. Call the restaurantat 815-433-2400 for reserva-tions.

LEE — Custom candleorders and money are

due by Friday. Orders may bepicked up Monday, Nov. 22, atthe Farm Bureau office. Callthe Farm Bureau office at 857-3531 or visit the website{www.leecfb.org} for moreinformation.

MONTGOMERY —The Prime Timers

will meet at noon Wednesday,Oct. 20, for a luncheon andmeeting. A meatloaf dinnerwill be served. Cost is $8.Mike Watson, conservationofficer, will be the speaker.Participants must be Mont-gomery County Farm Bureaumembers and 55 years of ageor older to attend. Call theFarm Bureau office at 217-532-6171 for reservations ormore information.

PEORIA — A defensivedriving course will be

from 9:30 a.m. to 2:30 p.m.Wednesday and Thursday, Oct.20-21, at the Farm Bureauauditorium. Doug Sommerwill be the instructor. Cost is$10 for members 55 years ofage or older.

• A Proctor HospitalHealth Clinic will be Wednes-day, Oct. 27, at the FarmBureau auditorium. Flu,tetanus, and pneumonia vac-cines will be available formembers. Call the FarmBureau office at 686-7070 foran appointment.

PIATT — The PrimeTimers will sponsor a

trip Tuesday, Oct. 26, toSouthern Illinois. Stops willinclude two wineries, a fudgeshop, and a lunch buffet.Cost is $50. Call the FarmBureau office at 752-2128 byTuesday, Oct. 19, for reserva-tions or more information.

ROCK ISLAND —The Rock Island

County Farm Bureau Founda-tion will sponsor its mainfundraiser, Harvest Gala, at 6p.m. Friday, Nov. 12, at theiWireless Center, Moline. Asilent and live auction will beheld. Tickets are $50. Reser-vations and payment are due

to the Farm Bureau office byTuesday, Nov. 2. Call theFarm Bureau office at 309-736-7432 for more informa-tion.

• Farm Bureau and areacounty Farm Bureaus will jointogether with local elevatorsto raise money for the River-Bend Foodbank with a“Bushels for Hunger” cam-paign. Producers may donatebushels of corn or soybeansto the campaign. Call theFarm Bureau for a listing ofparticipating elevators. Theprogram will continuethrough Nov. 30. Call theFarm Bureau office at 309-736-7432 for more informa-tion.

STEPHENSON — Flushots will be given from

9 a.m. to 2 p.m. Tuesday at theFarm Bureau office. Cost is$20 for members and $25 fornon-members. Medicare PartB will be accepted. Free hear-ing screenings will be availableat the same time, with ampli-fied telephones on display.

• A defensive drivingcourse will be from 10 a.m. to3 p.m. Tuesday and Wednes-day, Nov. 16-17, at the FarmBureau office. Doug Sommer

will conduct the course. Costis $15 for members and $25for non-members. Lunch isincluded. Call the FarmBureau office at 815-232-3186for reservations or moreinformation.

• Orders for holiday nutsand candies from Terri Lynnmust be placed and paid forby Friday, Oct. 29. Call theFarm Bureau office at 815-232-3186 or print the orderform from the website{www.stephensoncfb.org}.

• A family portrait programfor members will be from 9a.m. to 5 p.m. Saturday andSunday, Nov. 13-14, at theFarm Bureau office. A free 8x 10 portrait will be given foreach sitting. Call the FarmBureau office at 815-232-3186for an appointment or moreinformation.

• The annual meeting willbe at 7 p.m. Tuesday, Nov. 23,at the Highland CommunityCollege. Pie and beverageswill be served. Entertainmentwill be provided by theFreeport High School VarsityChoir. Call the Farm Bureauoffice at 815-232-3186 forreservations or more informa-tion.

Page 14: FarmWeek October 11 2010

PROFITABILITY

FarmWeek Page 14 Monday, October 11, 2010

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.50-$45.00 $39.9040 lbs. $50.00-$56.96 $55.0250 lbs. n/a n/aReceipts This Week Last Week

26,912 21,003*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 $71.10 $75.46 -4.36Live $52.61 $55.84 -3.23

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn09-30-10 16.4 24.2 35.509-23-10 19.2 24.9 36.4Last year 13.5 22.3 46.4Season total 59.0 379.1 167.1Previous season total 40.6 298.1 192.2USDA projected total 1520 1250 2100Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $94.98 n/a Heifers $94.99 $95.75 -0.76

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 Change109.78 110.03 -0.25

CME feeder cattle index — 600-800 Lbs.

Slaughter Prices - Negotiated, Live, wooled and shorn 120-155 lbs. for 125-149.50 $/cwt., dressed, no sales reported.

Lamb prices

Use technology to guide future decisionsBY SID PARKS

So far I’ve heard of somevery impressive yields fromproducers, while at the sametime the overall field averagesare down this year.

It likelywas no sur-prise to any-one whoendured thewell-above-average rain-fall this grow-ing season.

In CentralIllinois, we accumulated one-third more than the normalprecipitation for the season.

Plant stand and nutrientlosses from water pondingwere sometimes difficult to seefrom the road. I have had afew opportunities to observethis from the air this year, aswell as reviewing imageryobtained from our remote-sensing program or mappingyield data collected via yieldmonitors.

How does a person makeuse of today’s technology, ordo you simply hope the prob-lems don’t happen again?Allow me to share a few ideas.

First, if I had a combine, itwould be equipped with a yieldmonitor AND GPS position-ing equipment. This wouldallow me to document any wetareas, and quantify how muchimpact they actually had onyields.

These queries could tell meif or where I might need addi-tional drainage.

I also could use these yieldmaps to document nutrientremoval by the crop andreplace what is taken off asgrain. This, along with a goodsoil-sampling program, canhelp maximize nutrient effi-ciency.

Second, I had the oppor-tunity to gather a “bird’s-eye” view of the damage tosome fields via remotesensed technologies. Theseimage products are tools thatcan direct a crop profession-al to areas showing stress,perhaps still in time to dosomething about the growingcrop, but at least allowingthe opportunity to pinpoint

the problems for next time.Third, I would work with

my FS crop specialist tolearn if there are recommen-dations on how I mightreduce risk of nitrogen loss

to any future corn crop. Should I consider different

sources, adoption of loss-pro-tection products, or timing fornitrogen management?Should split applications be

considered as a way of reduc-ing exposure to N loss fromexcess rainfall?

If similar situationsappear in future years,should I consider supple-mental N applications to“rescue” the crop?

Nitrogen management inparticular should be consid-ered as a system rather thanjust an application of a prod-uct.

Contact your FS crop spe-cialist for help with these orother production questions orfor any FS Green Plan solu-tions for your farm.

Sid Parks is GROWMARK’smanager of precision farming. Hise-mail address [email protected].

Sid Parks This aerial shot shows some of the serious ponding that took place dur-ing the growing season in Illinois and Iowa.

Livestock production projected to remain profitableBY DANIEL GRANTFarmWeek

The margins in livestockproduction may tighten incoming weeks and months,but overall the industry isexpected to remain profitablethrough the fourth quarter.

John Harrington, DTNlivestock analyst, last week in amarket outlook webinar host-ed by DTN projected prices inthe fourth quarter could aver-age $75 per hundredweight forhogs on a dressed basis and$96 to $97 per hundredweightfor cattle.

The price projectionswould be significantly higherthan price averages last year of$55 per hundredweight forhogs and $83.50 for cattle.

The fourth quarter hogprice projection “is $5 lowerthan the third quarter, but itjust towers above the $55shell-shocked market we hadto endure last year,” Harring-ton said.

Pork demand plummetedlast year in the wake of theH1N1 outbreak, which original-ly was mislabeled “swine flu.”

This year, however, con-sumer spending on pork is up2.5 percent and Harringtonprojected exports for the yearcould total 4.3 billion pounds,up 5 percent from 2009.

The stronger demand forpork combined with the fact

hog slaughter this year is down3 to 3.5 percent from a yearago should continue to sup-port prices.

Harrington projected porkproducers this year could turnan average profit of $10 to$15 per head.

Margins could be tighterfor cattle producers, though,particularly those who pur-chased feeder cattle earlier thisyear at prices above $100 perhundredweight.

“We haven’t had profits (inthe cattle market) every day ofthe year, but a good many,”Harrington said.

“I think going forward theaverage of $96 to $97 in thefourth quarter will continue toreflect the improved demandcurve we’ve seen throughout2010,” he continued. “But it

probably doesn’t improveupon it.”

Harrington projected beefexports for 2010 could total2.2 billion pounds, up 17 per-cent from a year ago.

“It’s the best shipments we’veseen since 2003 before the BSEscare,” Harrington said. “It’sbeen a long road back.”

Meanwhile, lower carcassweights (which have aver-aged about 11 pounds lighterthan last year) should bal-ance out the fact that cattleslaughter this year is upabout 2 percent compared toa year ago, according to theanalyst.

“We’ve got more manage-able supplies,” Harringtonadded. “The question goingforward will be how good isdemand.”

Illinois corn yielded less than expected inmost areas in 2010, and corn following corn wasparticularly hard hit. Because current cropacreages are skewed toward corn, at least 20 per-cent of the 2010 corn in Illinois followed corn.

“This follows a period of several years dur-ing which corn following corn has often yield-ed about the same as corn following soybean,”said University of Illinois Extension crop spe-cialist Emerson Nafziger.

“It has been common, particularly in thecorn rootworm variant areas of Illinois, to haveyields of corn following corn to be as high asthose of corn following soybean, especiallysince the advent of rootworm-resistance traits.

“For many producers, lower yields of cornfollowing corn come as a shock.”

Corn following corn was challenged fromthe start, Nafziger said.

“In many fields, corn never looked verygood,” he said. “Compared to corn followingsoybeans, emergence was uneven, crop colorwas poor, and the crop struggled to take upenough nitrogen to grow well, regardless ofnitrogen rates and management.

“With May and June being so wet, manywho waited to apply nitrogen until after planti-ng struggled to get it applied on time. Nitro-

gen availability was an issue in these fields, butalso in fields where N was applied on time.”

Nafziger said a number of factors con-tributed to disappointing yields in corn follow-ing corn.

“Soils were too wet to do a good job oftillage, whether we did that last fall or thisspring, and more than the usual amount ofresidue remained on the surface,” he said.

“Soils were wet and fairly cold coming intoApril. The surface residue and cool, wet soilconditions combined to get the crop off to atough start.”

Soil temperatures didn’t increase until aftermid-May, Nafziger said. The corn crop was upby then, but in many fields it already wasuneven and appearing sickly.

Meanwhile, tilled corn-on-corn fields weremore likely to take in rain that fell in May andJune, causing soils to remain cool and slowingdrying rates.

“Because of this, I believe roots were dam-aged early and may never have recovered ful-ly,” Nafziger said.

For more information, check out the Oct. 7edition of The Bulletin, an online publicationwritten by U of I Extension specialists in cropscience, at {http://ipm.illinois.edu/bulletin}.

Corn-on-corn yields took big hit this season

Page 15: FarmWeek October 11 2010

PROFITABILITY

FarmWeek Page 15 Monday, October 11, 2010

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CASH STRATEGISTCorn Strategy

�2010 crop: The bullishUSDA production estimatepositions the December con-tract to move to its next targetnear $5.50. However, giventhese latest changes, there’sreason to think USDA mighthave projected the tightestsupply/demand scenario forthis crop, or nearly so. Usestrength to wrap-up sales.There’s precedence for harvestrallies like this one to be thebest selling opportunity.Hedge-to-arrive (HTA) con-tracts for winter/spring deliv-ery may be a good tool, butbecause carry has been takenout, check them against cashsales.

�2011 crop: Use this rallyto boost new-crop sales to 20percent. High current pricescould begin a demandrationing process that couldextend into the new crop.

�Fundamentals: Smallcrop and a weak dollar.There’s little left to bring morebuying into the corn market.Speculative funds already holdhuge longs. End users aren’tlikely to chase strength in a bigway. And persistently highprices could start demandrationing.Soybean Strategy

�2010 crop: On the sur-face, the soybean numberswere friendly, but not enoughto warrant prices posting limitgains Friday. There’s a chancewe could be seeing the highestdemand forecast for this crop.We’d use this rally to wrap upsales. Like corn, harvest ral-lies like this one tend to be thebest marketing opportunity.

�2011 crop: Use strengthto boost sales to 20 percent.Current high prices could startthe demand-rationing process,weakening prices by the timeplanting begins.

�Fundamentals: Eventhough USDA projected aslightly lower yield, that yieldstill eclipses last year’s record.The 1.2-million-acre declinewas the most significant pro-duction feature. The increasein the export forecast to a newrecord was equally surprising.It appears to be based on earlysales. But unless a SouthAmerican crop problem

occurs this winter, those couldquickly slow, allowing the end-ing stocks to rise from Friday’s265-million-bushel forecast.Wheat Strategy

�2010 crop: The USDAreport provided the momen-tum to carry wheat priceshigher again. Prices on theDecember contract closedabove the 20- and 50-day mov-ing averages. Old-crop salesare complete. Take advantageof current strength to wrapthem up, if you haven’t alreadydone so. HTA contracts forwinter delivery are still thebest marketing tool.

�2011 crop: Use rallies to$7.70 on Chicago July 2011futures for catch-up sales. Ifbasis is wide compared to thispast summer, consider a HTAcontract.

�Fundamentals: The tonein the wheat pit is being set by thecorn market. The USDA reporttrimmed world wheat productionby 1.6 million metric tons, 1 mil-lion tons of which was out of theU.S. U.S. 2010/2011 wheat end-ing stocks, at 853 million bushels,were a little below expectationsbut not significantly so. Winterplanting has steadily progressed,but scattered dry pockets arecausing some concern.

USDA reports are doing agood job of jerking tradersaround this year. It may besome time before we knowthe true fundamental struc-ture of this crop.

The 6.7-bushel reduction inthe yield forecast for this cropwas more than even the mostbullish analyst expected. The155.8-bushel forecast is evenbelow the number key analystswere looking for as a final yield.

The yield change from theSeptember to the Octoberreport was the second largestchange to the 9-bushel increasein the 2004 crop reports. Bothof those far eclipsed otherchanges in the past.

In the 2004 crop year,USDA started relatively low,forcing a big increase in Octo-ber. This year was the oppo-site as USDA started at a rela-tively high level. A lower yieldmay have been warranted.But one would have thoughtUSDA should have been able

Basis charts

to better forecast the crop inSeptember with this year’sadvanced maturity.

Historically, there is a prece-dent for big crops to get biggerand small crops to get smaller.But there’s only one or twoyears with big changes, all buteliminating that as a guideline.

In breaking down the com-ponents of yield, ear numbers,and ear weights, it was the earweight that appears to havetaken the biggest hit. The earcount per acre slid 90, achange that is within parame-ters of a “normal” report-to-report change.

The implied ear weightdeclined from .346 of a poundto .330. It’s now at the lowend of the range that has per-sisted since USDA expandedits field data collection fromseven to 10 states in 2004.And the ear weight is amongthe lowest on the seven-statedata going back another threeto four years.

Traders may not openly ask,but one has to wonder, didUSDA go too far? If we couldsee the indications from eachpart of the survey, the field dataand the mail/phone survey, onemight get a better insight, butthose results won’t be released.

The 150-million-bushelincrease in the feed/residualdemand was curious given thesmaller production and tightersupply/demand forecast.While we cannot say for cer-tain, there’s a chance this sup-ply/demand report could bethe “high-water mark” for thedemand forecast. Time will tell.

History has proven thatshort crops do have long tails.In other words, price peakstend to come early.

Cents per bu.

And another corn shocker!

Page 16: FarmWeek October 11 2010

PERSPECTIVES

FarmWeek Page 16 Monday, October 11, 2010

Letters are limited to 300words, and a name and ad-dress must accompany eachletter to be published.

FarmWeek reserves theright to reject any letter. Nopolitical endorsements will bepublished.

All letters are subject toediting, and only an originalbearing a written signatureand complete address will beaccepted.

A daytime telephonenumber is required for verifi-cation; however, the numberwill not be published.

Only one letter per writerwill be accepted in a 30-dayperiod.

Typewritten letters are pre-ferred.

Please send letters to:FarmWeek Letters1701 Towanda Ave.

Bloomington, Ill., 61701

Letter policy

The people of Illinois once again willhave an opportunity to vote instatewide elections Nov. 2. More

than steak is on the table!I have a favorite quote from

Abe Lincoln. Of the millionsof words he spoke or wrote,his “House Divided” speech of1858 is one of his mostfamous.

At the beginning of it,translated into modern Eng-lish, he said in essence: If weknew where we are, and wherewe want to go, we could moreeasily figure out how to getthere.

I like that!Where are we

in Illinois gov-ernment? Thatpicture is notpretty. In fact, weare documentedas the worst instate borrowingper capita, andwe are at the lowend in manyimportant cate-gories.

People from other states make jokes aboutour situation, but it is far from funny. This isour home!

For too long, too many good Illinois peo-ple have closed one eye to the political lead-ership and their actions or inactions. The citi-zens — you and me — need to step up andface the situation, and do more than maintainthe status quo.

How can we make it better? Where do wewant to go? How can we make a difference?

Candidates have been chosen, so we can

study them. Hard. The late Sen. Paul Simon’slast book was “Our Culture of Pander-ing.” That’s us. Our culture. That’s not good.

We really need to put a stop to politicianswho operate by promising more than theycan deliver and spending more than the gov-ernment has.

It’s time to confront our candidates. Askthe hard questions: “Will you spend morethan our government has to spend?” “Willyou stop adding new expenses until at leastwe have money to pay for them?”

“Can you do the hard work of balancingan honest budget?” “Can you stand up toyour party leaders and state officers whowant to force you to vote for new programs,when we don’t have enough money to pay forthe ones we now have?”

Illinois isblessed in manyways. We have fine,productive soils —some of the best inthe world. We haveworld-class univer-sities, and weexport huge quan-tities of productsworldwide everyyear. I could go onabout the really

good things in Illinois.I believe our government should reflect

the good folks of Illinois.Please study the candidates. Challenge

them. Vote, and ask your family members,friends, and neighbors to vote! Help Illinoisturn a corner and start up instead of spiralingdown.

Lin Warfel is a farmer in Champaign County.Recently, he served on the Illinois Farm Bureau Leg-islative Redistricting Working Group.

Editor’s note: This is the second in a series ofcolumns focusing on Farm Bureau members’

responsibilities in the up-coming election. The goalis to encourage Farm Bu-reau members to becomea c t i v e i n t h e p o l i t i c a lprocess and elect candi-dates committed to serv-ing agricultural interests.

LINWARFEL

When is a walking stick not a cane?A riddle is a mystifying, sometimes misleading puzzle

asked as a question and requiring ingenuity to answer. Rid-dles probably have existed for nearly as long as languageitself.

Most of us remember trying to figure out riddles as wewere growing up. And then when we heardthe answer, the response was something like,“Duh!”

Remember these? What is black and whiteand red all over? In case you forgot, thatwould be a newspaper. When is a door not adoor? When it is ajar!

Let me pose a riddle for your considera-tion: When is a walking stick not a cane? Giveup? When it is an insect, that’s when.

The walking sticks that humans use also areknown as canes, and some insects are calledwalking sticks. These creatures got their name

because they resemble sticks, and they do walk.There are about 3,000 different kinds of insect walking

sticks.Sometimes called stick insects, these creatures resemble

the twigs — and sometimes even the leaves — of the plantson which they feed.

Walking sticks vary in size. Some are only about a half-inchlong. Others are some of the largest insects in the world andmeasure more than 20 inches in length.

Some insect walking sticks have wings while others arewingless. In some species, the males have wings while thefemales do not.

The physical structure of walking stick insects is a naturalcamouflage system. These insects blend into their environ-ments so completely that many times they go unnoticed bythe casual observer. Even insect-eating birds sometimes failto notice walking sticks.

In addition to obvious camouflage, stick insects have othermethods of protection. Many remain motionless as they clingonto plants during daylight hours.

A few species have leaf-like legs; these species actually willsway when hanging from a plant in order to resemble leavesswaying in the breeze. One species that does this is called theAustralian stick insect.

A cage full of Australian stick insects can sometimes beinduced to exhibit the swaying behavior by a shout. Followingthe shout, the insects start swaying as if to say, “Nobody here— just us leaves swaying in the breeze!”

Another method of protection is the presence of spines onsome stick insects. Not only do the spines on their bodies andlegs make them look fearsome, the stick insects use the protru-sions to poke a predator that might have discovered them.

Walking sticks feed on leaves. Most species of walkingsticks are found in the tropics; however, temperate regions arehome to a few species of walking sticks. Generally, most peo-ple don’t see the insects because of their camouflage and thefact that many feed high up in trees.

In Indiana, spectacular populations of walking sticks aresometimes found in oak forests.

These insects can be so thick in the trees that a personstanding below them is bombarded with eggs and insectmanure, called frass, falling like rain.

Tom Turpin is an entomology professor at Purdue University, WestLafayette, Ind. His e-mail address is [email protected].

TOMTURPIN