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Monday, September 13, 2010 Two sections Volume 38, No. 37

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

WITH THE NUMBER ofcritical issues facing agriculture, per-haps never before has the impor-tance of getting the ag vote out beenmore critical. .......................................2

THE CORN CROP this yearhas fallen short of expectations,but USDA still sees a record inboth the corn and soybean crops,according to a report Friday. .........4

HIGH-SPEED INTERNETinfrastructure in 55 Illinois coun-ties will be improved with a $62million federal grant announcedlast week. .........................................3

Clock ticking down for estate tax reformBY PHILIP NELSONPresident, Illinois Farm Bureau

The federal estate tax — commonlyknown to farmers as the “death tax” —is now in a dreadful state of limbo inCongress. Your help is needed to push

through reform.Those who support

the estate tax say it is aneffective way to stopthe accumulation offamily dynasties. It is a“rich person’s” tax, so itis said, with less than 5percent of Americanspaying anything at all.

But Congress has long recognizedthe estate tax can hit the middle class,and especially the owners of small busi-nesses such as farms. That’s why law-makers put an escalating exemption inthe law in 2001, gradually raising thevalue of an estate exempted from $1million to $3.5 million in 2009.

Sounds like a lot of money. But itjust barely kept ahead of increases in

farmland prices over the past decade.And now, unless the law is changed, thebroadly supported exemption is sched-uled to snap back to 2001 levels.

Time is literally running out for con-gressional action regarding the estatetax. The tax returns on Jan. 1., 2011,with a rate of 55 percent and a $1 mil-lion exemption.

With such a lowexemption, many morefarmers and small businessowners will be forced topay estate taxes next year(see accompanying story).

I have heard from farmers concernedthat if they were to pass away, their chil-dren may be left without enough cash onhand to pay the tax and may be forced tosell off land in order to keep their opera-tion going. These farm families whoworked their whole lives to build a businesscould be forced to give much of it away.

Congress is aware of the negativeconsequences of the tax for farmersand small business owners, but

nothing has been done.Businesses that require tremendous

capital but often are in a cash-shortposition cannot afford to pay the highestate taxes dictated by the new law.

Congress is heading into the pre-elec-tion home stretch, and it is importantthat action takes place now!

This is a high priorityfor Illinois FarmBureau, and we areactively working on theissue. Farmers andsmall business owners

have limited time to leanon Congress to fix this problem.

We encourage every Farm Bureaumember to participate in IFB’s actionrequest. Contact Senators Durbin andBurris to request their support for theLincoln/Kyl amendment (which wouldraise the standard exemption to $5 millionand lower the estate tax rate to 35 per-cent). Also, respond to the action requestand contact your congressmen today.

We are calling on Congress to pro-

Call for actionIllinois Farm Bureau Lead-

ers to Washington this weekwill lobby lawmakers on Capi-tol Hill on a variety of mea-sures, with an emphasis onestate tax relief.

Meanwhile, producers hereat home can raise awarenessof the threat to farm families ifCongress fails to act on theestate tax reform.

IFB is asking membersTuesday through Thursday tocall Illinois’ U.S. Sens. DickDurbin, a Springfield Democrat,and Roland Burris, a ChicagoDemocrat, in support of the Lin-coln/Kyl amendment — a Sen-ate measure that would boostthe estate tax exemption to $5million ($10 million per couple),adjusted for inflation, andestablish a 35 percent tax rate.

Call Senator Durbin at 1-202-224-2152 and SenatorBurris at 1-202-224-2854.

If Congress fails to approvesome form of reform, the estatetax will return at a $1 millionexemption and 55 percent taxrate in 2011. Producers areurged to relate how estate taxliability could impact their oper-ations or future farm viability.

For further information, visit{www.ilfb.org/fbact} on theweb.

vide a higher estate tax exemption and alower tax rate. A higher exemption willprotect average people, giving them abetter chance to remain in business afterpassing through an estate settlement.

This week, we are organizing an actionalert to target Congress and push estatetax reform to a vote as soon as possible.

We seek your involvement! FarmWeekNow.comTo learn more about IFB’saction request on the fed-eral estate tax issue, go toFarmWeekNow.com.

Lack of estate tax reform could fuel rural exodusBY MARTIN ROSSFarmWeek

Amid last week’s WhiteHouse focus on small busi-ness stimulus and tax relief, anIllinois rural economist rec-ommended estate tax reform

“Preserving that group isreally important to the futureof rural areas. If you havehigher estate taxes, you forcebusiness sales.”

Walzer sees potentially sig-nificant relief in Senate pro-posals to bump the estate taxexemption to $5 million (seeaccompanying story), arguingthat “in a rural area, that’s a lotof money for a business.”

In part because of a grow-ing tendency toward retailchain development alongmajor highways and in newfacilities, the economist warnsMain Street business closingsin many cases will leave behindindefinitely empty storefronts.

When that business is alocal grocery or drugstore cen-tral to community activity, theloss also hurts the area’s abilityto retain retirees or attract newbusinesses or residents.

That can result in homedeterioration among remaininglower-income residents, fur-ther devaluing the community.“It’s just a continual kind ofdecline,” Walzer suggested.

as a key step in helping MainStreet move forward and retain“wealth.”

Western Illinois UniversityIllinois Institute for RuralAffairs economist NormanWalzer sees a potential rever-sion to pre-2002 estate taxprovisions as a serious threatboth to farm families and fam-ily-owned rural businesses thatface either intergenerationaltransition or extinction.

Walzer sees a continuedexodus of rural youth to urbancenters as many members ofthe baby boomer generationreach retirement age.

In some cases, estate tax lia-bility under a relatively low $1million exemption and a severe55 percent tax rate may provethe deal-breaker for businessheirs and spur further erosionof the rural economy, he said.

The threat is aggravated bywhat Walzer views as a lack ofsolid business succession plan-ning in rural communities.

“We’re in a situation now ofbeing able to have probablythe biggest wealth transfer

ever,” he told FarmWeek.“The post-World War II gen-eration did very well — itaccumulated a fair amount of

wealth. You’re transferringfarms, but you’re also transfer-ring businesses. I don’t thinkwe really pay enough attentionto that.

“The independent busi-nesses are terribly importantin these (rural) areas. If youlook at some of the statistics,you find that as many as 20 to25 to 30 percent in somecounties are private business-es, small operations.

‘If you have high-er estate taxes,you force busi -ness sales.’

— Norman WalzerIllinois Institutefor Rural Affairs

REASSURING THE RETAILERS — As federalofficials continued to mull a waiver to allow E12 or E15(12 to 15 percent ethanol gasoline blends), the Renew-able Fuels Association (RFA) endorsed CollinsvilleRepublican U.S. Rep. John Shimkus’ Renewable FuelsMarketing Act of 2010, which would address legal liabil-ity concerns about use of higher ethanol blends amongfuel marketers.

The bill would require the federal government toissue guidance on retail fueling equipment approved foruse with individual biofuels blends. The RFA “is doingeverything within (its) power to support these retailersand any retailers looking to offer ethanol blended fuels,”RFA’s Matt Hartwig said.

FIRES DAMAGE THREE ELEVATORS –- Fire-fighters fought fires at three elevators last week as cornharvest geared up.

An explosion Tuesday damaged facilities and resultedin injuries to three people at an elevator owned by Tate& Lyle and located in Heyworth in McLean County.Investigators had not determined a cause, but weldershad been at work on a grain bin attached to the elevator.

On Wednesday, an explosion injured two people anddamaged a truck at the Ursa Farmer’s Co-op in Warsawin Hancock County. Witnesses described fireballs shoot-ing 200 feet into the air from grain pit. A cause had notbeen determined and the incident was under investiga-tion.

Also on Wednesday, corn caught fire in a bin at the Monica Elevator Co. in Dunlap in Peoria County. Spon-taneous combustion is the suspected cause.

“The (poor) quality of the crop that remains fromlast year is causing ... some issues,” Stuart Selinger ofthe Illinois Department of Agriculture told FarmWeek.

ENBRIDGE PIPELINE SPILL — Federal, state,and local agencies responded to a pipeline oil spill nearRomeoville last week. The pipeline is owned byEnbridge Energy Limited Partnership.

Environmental Protection Agency, state and localagencies responded immediately and are taking steps tominimize damage and protect the Des Plaines River,according to Susan Hedman, EPA regional administra-tor.

Initial assessments indicate crude oil from thepipeline flowed through sewers into a retention pondnear Route 53. The pipeline was shut down.

This was the second Enbridge pipeline spill this sum-mer in the Midwest. The first one caused damage in theKalamazoo River.

Enbridge Pipelines (Illinois) LLC is building apipeline from Northern Illinois to Patoka in MarionCounty.

FarmWeek Page 2 Monday, September 13, 2010

(ISSN0197-6680)

Vol. 38 No. 37 Sept. 13, 2010

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

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Quick TakesDECISION 2010

Getting out the vote:

Voter anger in federal racescould spell mixed results for ag

BY MARTIN ROSSFarmWeek

Perhaps in no election has the power of angerand the importance of getting the ag vote outbeen so critical.

At this point, with a few state primary racesremaining, handicapping this November’s CapitolHill elections is “nearly impossible,” AmericanFarm Bureau Federation political specialist LindaJohnson told FarmWeek.

But amid growing discontentment with theadministration and Congress and the continuedrise and some surprising prima-ry wins by the conservative TeaParty faction, Johnson seespotential for major upheaval onthe Hill next year.

She noted a large number ofHouse and Senate seats “in thetoss-up column” and an “amaz-ing” number of lawmakers whodecided not to even seek re-election, including Sens. ByronDorgan (D-N.D.), ChristopherDodd (D-Conn.), and Kit Bond (R-Mo.) and Rep.Marion Berry (D-Ark.).

Johnson sees Illinois’ U.S. Senate race betweenDemocrat Alexi Giannoulias and RepublicanMark Kirk in “a solid toss-up column.”

Political analyst Charlie Cook predicted theHouse would turn over to a Republican majority,given frustration over the poor economy and thejob market.

Last week, Cook included 45 House (42Democrat and three Republican) seats in his“toss up” column, and Johnson noted Republi-cans only need 39 seats to regain House control.

With 11 Senate seats deemed toss-ups, Cookbelieves Democrats will retain a Senate majority,but will lose some key seats.

Johnson suggested the Democrat majoritythere could shrink to perhaps one or two seats,increasing the need for bipartisan policy coopera-tion over the next two years.

A shakeup could prove a mixed bag forfarmers.

Senate Environment Chairman Barbara Boxer(D-Calif.) is “definitely in the toss-up column,”and as a regulatory advocate and part of a power-ful California clique that includes DemocratHouse Speaker Nancy Pelosi and senior Sen.

Dianne Feinstein (D-Calif.), her defeat “wouldnot be a loss for us,” Johnson argued.

Neither would the defeat of Sen. Russ Fein-gold (D-Wis.), another reported toss-up who hassupported universal health care, Johnson said.Senate Majority Leader Harry Reid (D-Nev.) alsofaces a tough race against Republican SharronAngle.

On the flip side is Senate Ag CommitteeChairman Blanche Lincoln (D-Ark.), who helpedbroker a major 2008 farm bill compromise andwho has supported estate tax reform and other

key Farm Bureau goals. While she survived a con-

tentious primary race, Johnsonwarned Lincoln’s is “probablythe most important seat outthere that we’re looking at los-ing.”

She’s been very good for us,but right now all of the politi-cal pundits do not think shecan pull this out,” Johnson told

FarmWeek. “Blanche Lincoln is a real trooper,and she’s working really hard, but she’s swimminguphill.

“This is a Republican wave coming down.There are a lot of people out there who are justangry at government in general and the partythat’s in power, and no matter how good (Lin-coln’s) been, I think they’re going to take her outbecause of that — because she has the wrong let-ter behind her name.”

Boxer’s departure would make it easier forSenate Democrats to reach across the aisle onissues such as climate, Johnson said.

But she fears the new wave also could “takeout some really good conservative Ds (Democ-rats)” important to bridging the party divide andpotentially more sympathetic to ag spending thanfiscally stern Tea Partiers.

And Democrat lawmakers are not the onlypotential casualties. Sen. Lisa Murkowski, anAlaska Republican known for her efforts to blockU.S. Environmental Protection Agency green-house gas regulations, conceded her party’sAugust primary race to Joe Miller, a former judgeendorsed by ex-Alaska governor and Tea Partychampion Sarah Palin.

“The (traditional) GOP is not necessarily theTea Party’s friend,” Johnson advised.

RIDING FOR EDUCATIONLeft: Carrie Schreiber, Illinois Agriculture in theClassroom (IAITC) education specialist, leads stu-dents at Chebanse Elementary School in Kanka-kee County in a game called “Are You SmartEnough to Farm?” during last week’s IAA Foun-dation-sponsored 15th annual Bike Ride forIAITC. Participating in the skit were bike riders inbackground, from left, Don Bergfield, Leon Mal-one, Doris and Jess Lionberger, and Diane Risius.

Right: Some of the 50 bike riders whoparticipated in the bike ride pass througha rural area in Kankakee County. Theriders traveled more than 500 miles dur-ing the three-day ride through Ford,Grundy, Iroquois, Kankakee, Livingston,and Will counties. Proceeds from theride, which were still being tallied Friday,will go to fund the IAITC program. (Pho-tos by Ken Kashian)

INFRASTRUCTURE


State ramping up information highway with $96 million projectBY KAY SHIPMANFarmWeek

Illinois will be improving its high-speedInternet infrastructure in 55 counties with a $62million federal grant, Gov. Pat Quinnannounced in Normal last week.

“It’s key to prosperity,” Quinn told a crowdat Illinois State University. “We need to bringtogether tools of the Internet in the globaleconomy . . . so everyone can compete.”

Illinois won the U.S. Department of Com-merce grant for the state’s Illinois BroadbandOpportunity Program. The state will contributea $26 million matching grant and partner orga-

nizations willpitch in another$8 million.

When com-pleted, thethree-year pro-ject will add

1,000 miles offiber-optic broadband cable and will enhanceanother 1,000 miles of existing cable in eastern,central, and northern portions of the state,according to Lori Sorenson with the state’s Cen-tral Management Services.

Sorenson estimated the project will mean a10-fold increase in broadband capacity andmore affordable services for 3.9 million house-holds and 285,000 businesses. She said con-struction is expected to start in the spring.

This was the second announcement in asmany weeks on federal funding for Illinoisbroadband projects. USDA recently awardedIllinois $12 million to bring wireless networktechnology to 11 East-Central Illinois counties.

Improving broadband access in rural areas isa 2010 priority of the Illinois Farm Bureau.

The project announced last week will buildon the efforts of five regional fiber-optic net-works and many community proposals to pro-vide a comprehensive statewide broadbandinfrastructure. Collectively, the projects woulddirectly connect all 48 community colleges to astatewide network.

“Bandwidth is a driver for new businesses,”said Tim Norman, a Bloomington businessmanwith a new Internet company. Norman addedhe never imagined two of his first Internet cus-tomers would be located in California andMaine.

“Building this information superhighway willcreate jobs,” Quinn added.

FarmWeekNow.com

‘Bandwidth is a dr iver fornew businesses.’

— Tim NormanBloomington small business owner

President’s plan possible transportation stage-setterBY MARTIN ROSSFarmWeek

The White House’s newblueprint for reinvigorating thenation’s infrastructure sets thestage for next year’s congres-sional transportation debate —if federal funds are available totake it beyond the design stage.

In a Labor Day address,President Obama proposed a$50 billion “up-front invest-ment” in long-term road, rail,and airportimprove-ments. A pro-posed newfederal “infra-structurebank” wouldhelp leveragelocal, state,and privatecapital.

Jack Basso,director ofprogramfinance andmanagementwith theAmericanAssociation of State Highwayand Transportation Officials(AASHTO), said he waspleased the administration“has embraced the idea ofdoing a long-term reauthoriza-tion for surface transporta-tion.”

The White House last weekbriefed House and Senate

committees on the proposal.House Transportation andInfrastructure Chairman JamesOberstar (D-Minn.) suggestedadministration officials have“finally found their compass”after providing meager stimu-lus funding for transportation.

Basso noted “the front-loading of $50 billion” on topof existing fiscal 2010 high-way/transit funding wouldoffer a potential $100 billion

short-terminfusion forimprove-mentsnationwide.Further,Obama’sinfrastruc-ture bankcould offernew loanguaranteeopportuni-ties for pub-lic/privateprojects suchas “inter-

modal” truck/rail facilities, hesaid.

“They want to make invest-ments in 150,000 miles ofroadway improvements and4,000 miles of rail,” he toldFarmWeek.

“The highway improve-ments would make a big differ-ence in terms of freight move-ment — about 80 percent of

our goods move by the high-way system, and if you look atthat by dollar value, it’s about90 percent.

And in agriculture, muchof that moves either onfreight rails or truckinglanes.”

Meanwhile, the WaterwaysCouncil Inc., which repre-sents commercial barge inter-ests, was “left disappointedand puzzled” about the lackof presidential support forany river navigation or portprojects.

Basso said he hopes Con-gress can begin “moving in

earnest” on transportationearly next year. Oberstar hasfloated a draft bill including a“critical infrastructure pro-gram” aimed at upgradingexisting facilities; Basso sug-gested it could be expanded“where appropriate” to addhighway capacity.

Basso noted recovery intruck freight movements overthe past several months, bol-stering demand for increasedcapacity.

But he warned capacity-building will be possible onlyif Congress provides at least$450 billion in long-term

transportation/infrastructurespending.

On top of that, AASHTOfavors at least $50 billion ininner city/passenger/highspeed rail transportation fund-ing provided from sourcesother than the fuel tax-fedHighway Trust Fund.

Currently, the trust fund isused for roughly 80 percent oftransit needs; Basso stressedthe need instead to fund transitthrough the federal generalbudget.

“Of course, the key to allthat is finding the money,” heacknowledged.

Additional information aboutthe Central Illinois broad-band project can be found atFarmWeekNow.com.

‘They want to makei n v e s t m e n t s i n150 ,000 m i les o froadway improve-men ts and 4 ,000miles fo rail.’

— Jack Bassostate highway association official

PRODUCTION


USDA trims corn estimate, sees record bean cropBY DANIEL GRANTFarmWeek

USDA in its crop produc-tion report Friday confirmedwhat many corn farmers havefound so far this harvest.

The crop is not reachinglast month’s USDA yieldexpectations. USDA loweredits national corn yield esti-mate, based on Sept. 1 condi-tions, by 2.5 bushels to a cur-rent projection of 162.5bushels per acre.

The average corn yield esti-mate in Illinois was loweredfrom 180 bushels per acre inAugust to a current estimateof 174 bushels per acre.

“As expected, the report

projection was raised from 49bushels per acre in August to acurrent record estimate of 51bushels per acre.

Record crop productioncould cap recent market rallies.Corn futures last week reached23-month highs, but the mar-kets are not expected to turnbearish anytime soon due tostrong demand.

USDA last week raisedexport projections by 50 mil-lion bushels each for corn andwheat and estimated soyexports for the year will reacha record 1.495 billion bushels.

“The market built in a fairamount of the (corn) yieldreduction,” Basting said. “But

it could continue to rally.(Either way), the market is giv-ing farmers a tremendousopportunity to lock in a floorfor their production.”

USDA raised its seasonaverage farm price projectionsby 65 cents for beans (to arange of $9.15 to $10.65 perbushel), by 70 cents on thehigh side for corn (to a rangeof $4 to $4.80 per bushel) andby 15 cents on the high sidefor wheat (to a range of $4.95to $5.65 per bushel).

USDA Friday also loweredending stocks to 1.116 billionbushels for corn, 350 millionbushels for beans, and 902million bushels for wheat.

did show a reduction in cornyield,” said Brian Basting ofAdvance Trading during a tele-conference hosted by theCME Group.

Terry Roggensack of TheHightower Report said hebelieves corn yields aren’tmeeting expectations due toexcessive moisture in June andJuly that possibly caused someleaching of nitrogen combinedwith extreme heat and dryness

in August that sped up thematuration process and short-ened kernel filling time formany corn plants.

Total corn production forthis year was lowered 2 per-cent from the August forecastto 13.16 billion bushels. Thatstill would set a record.

Meanwhile, U.S. soybeanproduction and the nationalaverage bean yield also would berecords, based on USDA’s Sep-tember estimates. The agencyboosted its bean productionestimate 1 percent compared toAugust to 3.483 billion bushelsbased on a record average yieldof 44.7 bushels per acre.

In Illinois, the soybean yield

FarmWeekNow.comFull details of the Septembercrop and supply-demand re-p o r t s a r e a t F a r m We e k -Now.com.

Corn basis wideningpossible by this fall

Farmers who have corn they must sell at harvest may want to con-sider locking in a basis price — if it is favorable in their area.

There is concern in the industry that a backlog of damaged cornfrom last year’s harvest could affect the market in coming months andlead to a widening of the basis.

“I’m very concerned about the corn basis this fall,” said DougYoder, Illinois Farm Bureau senior director of marketing and risk man-agement. Yoder last week addressed members of the IFB ProfitabilityAdvisory Team.

Yoder reported about 1,000 barges remain loaded with damaged,old-crop corn and are docked near the Gulf of Mexico awaiting high-er-quality, new-crop corn with which to be blended so the loads meetexport requirements.

The portion of barges currently out of commission for the start ofthe 2010 harvest because they hold old-crop corn reportedly is about10 percent of the fleet.

“This could lead to a widening of the basis,” Yoder said. “There’snot a lot we can do about it. That’s the market at work.”

Fortunately, the corn basis was still holding up as of last week.Meanwhile, the pressure on the grain transportation system may not beas great as feared this season because early yield reports indicate cornyields generally are below previous expectations.

However, the number of barges tied up with old-crop corncould hurt export sales of distillers dried grain (DDGs). Buy-ers in the Gulf currently are outbidding the container marketfor DDGs, according to Phil Thornton, value-enhanced pro-ject director for the Illinois Corn Growers Associa-tion/Marketing Board.

But sales could be limited by the number of barges availableto haul the corn-ethanol byproduct to market.

“The backlog of corn could put a crimp in DDG sales,”Thornton told the advisory team.

Overall, a change to the wheat contract at the ChicagoBoard of Trade, in which variable storage rates were imple-mented beginning with the July contract, has offered encourag-ing results to help eliminate major discrepancies betweenfutures and cash crop prices.

“We certainly saw some improvement of convergence (inthe wheat market),” said Yoder, who also serves on the Com-modity Futures Trading Commission (CFTC) subcommitteeon convergence. “But it’s premature to say it solved the issue.”

IFB, the Profitability Advisory Team, the CFTC subcom-mittee, and others currently are monitoring the performance ofthe wheat contract with the new storage rates to see if similarchanges may benefit corn and soybean contracts.

“Convergence is a continuing concern we’re monitoringclosely,” said Kent Schleich, chairman of the IFB advisoryteam and District 8 director from Fairview.

Basis levels for corn and soybeans the past two years havebeen on a “rollercoaster,” Yoder added. — Daniel Grant

55 Illinois countiesdesignated disaster areas

The Illinois Department ofAgriculture (IDOA) announcedfederal disaster assistance isavailable to help many farmersin counties who suffered croplosses because of excessive rainand flooding this year.

USDA granted the state’srequest to designate 55 countiesas natural disaster areas. Thedesignation qualifies farmers inthose counties and 37 contigu-ous counties for USDA assis-tance, including low-interestemergency loans.

“While the latest USDA cropproduction report forecastsnear-record yields for the Illi-nois corn and bean crops, dam-age assessments show somefarmers may have suffered pro-duction losses because of heavyrains this spring and summer,”IDOA Director Tom Jenningssaid.

“The loans this declarationtriggers will help those farmerswho don’t have a crop to har-vest this fall.

“They can be used not onlyto pay production costs, butalso to refinance existing debtand cover essential family livingexpenses.”

The period from Aprilthrough July of this year wasthe fourth wettest on record inIllinois. Precipitation totaled21.63 inches, or 5.43 inchesabove average.

Current estimates indicate200,000 acres of corn and50,000 acres of beans could beunharvestable this fall due inpart to the extremely wet condi-tions. The corn crop currentlyis forecast to yield a record-tying 174 bushels an acre,which means as many as 36 mil-lion bushels of corn may havebeen lost to flooding.

The potential soybean lossestotal 2.45 million bushels, based

on a projected near-recordyield of 51 bushels an acre.

The 55 counties declared asprimary disaster areas areshown in the accompanyingmap.

Thirty-seven contiguouscounties also were approved fordisaster assistance.

Farmers who believe theymay qualify for disaster assis-tance should contact their coun-ty Farm Service Agency office.

Farm Service Agency staffcan verify whether producershave crops that are eligible foremergency funds.

Applications are consideredon a case-by-case basis, takinginto account the extent oflosses, available security, andan applicant’s repayment abili-ty.

The deadline to submit loanapplications under this disasterdeclaration is May 2, 2011.

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Carp study to intensify; navigation at risk?BY MARTIN ROSSFarmWeek

As a new federal carp czarpledged to explore all optionsto keep Asian carp out of theGreat Lakes, a pair of Mid-western senators disagreedover the extent to which carpcontrol should impact rivercommerce.

Last week, the WhiteHouse Council on Environ-mental Quality (CEQ)announced former IndianaDepartment of NaturalResources Director John Gosswould oversee local, state, andfederal efforts to prevent the

options for ecological cooper-ation between the MississippiBasin and the Great Lakes.We’ll have two different

approaches, with economicanalysis in both.”

In addition to serving asexecutive director of the Indi-ana Wildlife Federation andvice chairman of the regionalGreat Lakes Commission,Goss formerly chaired theCouncil of Great Lakes Gov-ernors’ International Market-ing Cooperative.

As Asian carp director, hewill chair the Asian CarpRegional Coordinating Com-mittee (RCC), a team of feder-al, state, and local agencies.

He hopes the RCC in Octo-ber will release an updatedcarp control strategy, which

currently proposes 25 short-and long-term measures and“tens of millions of dollars ofinvestment.”

Stabenow argued the carpcrisis is intensifying, notingreports of carp spawning inthe Wabash River and fears ofwetland connections with theMaumee River along thenortheast Indiana-Ohio bor-der posing a threat to LakeErie. Durbin and HinsdaleRepublican Rep. Judy Biggerthave channeled $25 million-plus into electronic barriersand other control measures,but Durbin argued “we haveto double our efforts.”

“From the viewpoint ofthe Illinois congressional del-egation, Democrats andRepublicans, when it comesto the Asian carp threat, weare not in denial, we are notin a go-slow mode,” Durbinsaid.

“We are in a full-attack,full-speed-ahead mode. Wewant to stop this carp fromadvancing, and stop otherpredatory species from com-ing into Lake Michigan anddestroying this great, wonder-ful American resource.”

invasive carp from settling inLake Michigan via the ChicagoSanitary and Ship Canal.

Illinois Farm Bureauopposes Northeastern Illinois’Chicago and O’Brien Lockclosures proposed to blockcarp access. But U.S. Sen. Deb-bie Stabenow (D-Mich.), whojoined Sen. Dick Durbin, aSpringfield Democrat, in hail-ing Goss’ appointment as carpdirector, renewed the call forpermanent lock closures.

While Durbin citedStabenow’s shared “passion”in combating the voraciousfish, he questioned the feasi-

bility of such a separation. Beyond the significance of

the Chicago-area waterway to“the commerce of the area”— movement of goods intoand out of the metro hub —separation of the river chan-nel, the canal, and/or LakeMichigan poses a regionalflood threat “of tremendousmagnitude,” he said.

Federal and Midwesternofficials will consider naviga-tional impacts and otherpotential economic costs asso-ciated with carp control mea-sures, Goss said.

He said he would withholdjudgment on the need for lockclosures or other canal separa-tion measures until the U.S.Army Corps of Engineerscompletes its own study ofinvasive species controloptions.

“Absolutely, cost-benefit isa key part of the Corps ofEngineers study,” Goss toldFarmWeek. “It also will belooked at from a more inde-pendent point of view by theGreat Lakes Commission.

“It (the commission) will bedoing a very thorough cost-benefit analysis of all the

Chu: Illinois crucial in clean coal blueprint

While he outlined broad new directions in developing cli-mate-friendly coal technologies, U.S. Energy Secretary StevenChu assured FarmWeek FutureGen — and Illinois — willremain critical to sustainable coal power.

Last week, the Department of Energy (DOE)announced an “unprecedented investment” inclean coal development aimed at meeting thepresident’s goal of cost-effective carbon dioxide(CO2) capture and storage within 10 years, posi-tioning the U.S. as “a leader in the global cleanenergy race.”

Included are $312 million in federal stimulusfunds for large-scale testing of advanced gasifi-cation technologies key to industrial carbon cap-ture; $123 million for advanced turbo/lower

emissions engines and $90 million for added technologies thatwould help plants further contain CO2; and $50 million toexplore underground formations where CO2 emissions could betrapped and “sequestered” long-term.

The University of Texas will head efforts to identify possiblesequestration sites in the Gulf of Mexico region. “FutureGen2.0,” DOE’s revised version of a long-delayed clean coal project,proposes to transport CO2 from Ameren’s idled Meredosia powerplant (and possibly other manufacturing or power plants) througha projected 175-mile pipeline to East Central Illinois, where itwould be injected deep into the Mt. Simon Sandstone Formation.

The original FutureGen envisioned a cutting-edge coal-pow-ered facility and CO2 sequestration site near Mattoon. But theColes County community rejected the offer of a sequestration siteand a new CO2 capture-pipeline training center without the plant.

Chu nonetheless emphasized FutureGen 2.0 — and the $1billion in 2009 stimulus money earmarked for it — are still inte-gral to the national clean coal push.

FutureGen would provide a commercial-scale test of “anentire system” which eventually could be adapted to use “genera-tion-and-a-half and second generation” CO2 reduction/capturetechnologies developed through new projects, he toldFarmWeek.

“While the FutureGen project will test the system, we’re alsoinvesting in the components of the system so we that can drivedown costs,” Chu said. “Our goal is to start to deploy at scalecommercially within 10 years.”

The Meredosia plant itself will be retrofitted with cutting edge“oxy-combustion” technology, using superheated oxygen to burncoal with reduced emissions. New technologies funded by DOEin Pennsylvania, Washington, and California include new engineturbines that could burn hydrogen at higher temperatures, reduc-ing potential greenhouse emissions, to new equipment that couldcompress CO2 for storage or transportation or even allow use ofmethane from coal vents as an additional energy source.

Meanwhile, possible Illinois CO2 sequestration sites “areunder evaluation, and we’re pressing forward as quickly as wecan,” Chu related.

With Mattoon out of the running, Tuscola in Douglas County— a FutureGen runner-up in 2008 — could be back under con-sideration as a carbon collection site. — Martin Ross

‘Cost-benefit is akey p a r t o f t h eC o r p s o f E n g i -neers study.’

— John GossFederal Asian carp director

Steven Chu

Bernie Walsh, Durand, Winnebago County: We had sev-eral weeks of above averagetemps this summer but last weekwas below average. There wasonly a trace of rain last week andsome very windy days thathelped dry the corn and beansand get us closer to harvest. Silofilling is nearly complete, and

there has been some corn combined, butvery little. The early reports are moisture inthe low 20s, generally good corn yields,except on corn-after-corn, and test weightsall over the board. The soybeans are stillabout 10 days from being ready to combine— more on that next week. Have a goodweek and stay safe.

Pete Tekampe, Grayslake, Lake County: It was a greatweek in Lake County. A couple oflight showers with less than 0.1of an inch accumulation for theweek. Corn is drying fast, butthere is not much green left.Early beans are losing leavesbut still about 10 days until com-bining. Late beans are still grass

green but not needing much more time. Mostof the silage is cut and still some third-cuttinghay to be baled. It is expected to be dry therest of this week.

Leroy Getz, Savanna, Carroll County: A few sprinkles onSunday (Sept. 5) but no realmeasurable rain for the week.Combines have started, but withthe dry weather, guys are lettingit dry in the field as long as pos-sible. Moisture levels havedropped about 3 to 4 percent forthe week and now are in the

mid-20s. Windy days have lodged most soy-bean fields.

Ron Frieders, Waterman, DeKalb County: A few peoplestarted on corn last week.Moisture was 17-29 percent withbelow average to average yields.Some fields have stalk qualityproblems and standability is a bigconcern. I don’t think anyone hassoybeans ready yet. A few fieldsare getting close, and I wouldn’t

be surprised to see early varieties combinedsoon.

Larry Hummel, Dixon, Lee County: It’s official. Harvest inLee County has started — kindof, anyway. I have seen onecombine doing beans and twofields of corn being harvested.We still have a good week yetbefore any of our beans areready, even though we hadsome excellent drying days last

week. High land prices, the economy, and anincrease in capital gains taxes scheduled fornext year seem to have brought an unusualamount of farmland onto the market. Evenwith the influx of property for sale, pricesseem to be inching higher at a slow butsteady pace.

Ken Reinhardt, Seaton, Mercer County: There was somerain over the holiday weekendbut not a washout. Tuesday(Sept. 7) was deemed the windi-est day in two years in WGN’sblog. Corn harvest has begun inearnest. Yields will be all over theboard. I have heard of moistureas low as 16 percent already. The

big elevator project in Aledo looks to be ableto take corn Oct. 1. The new elevator justsouth of the county line has given up on thisyear after a long struggle with muddy condi-tions. There are a few soybean fields a weekaway from harvest.

Ron Moore, Roseville, Warren County: We had somelight showers this past week.Corn harvest is in full swinghere. Most of the corn ismature and testing from 18 to25 percent moisture. Some ofthe refuge corn is starting tolodge, but not enough to haveany field loss. The yields are

highly inconsistent. The ponded areas aremaking anywhere from 0-100, and the bet-ter land is normal with yields of 200. Wewon’t know for sure what our yields areuntil the last field is harvested. Soybeansare still two to three weeks away from har-vest. Many are just turning the leaves yel-low now.

Tim Green, Wyoming, Stark County: A very cool week wasreally appreciated with a lot ofwork getting done. After LaborDay, a lot of people started pick-ing corn. Yields generally arelower. I heard yields as low as115. That was a nice, square, flat40-acre field. We had a lot ofwater problems, and yields are

showing it. The highest yield I have heard is191 — corn-on-corn on rolling ground. I alsohave heard 151, so yields are pretty wild.Beans are still probably a week off — maybethe end of this week, weather permitting.Corn moistures are good and seem to becoming down.

Mark Kerber, Chatsworth, Livingston County: Harvesthas begun. Almost everybody isin the field taking advantage ofdry weather and dry crops. NowI go to bed at night listening tothe hum of bin fans. Completelydifferent from last year when westarted beans on Sept. 29 andcorn on Oct. 12. In general, corn

yields are down 30 to 50 bushels to the acrewith corn-on-corn really taking a hit from norain in July and planting on compacted soilsfrom last year’s mud. We started soybeanslast week also. High winds and heat reallydried the early soybeans. A small rain eventwould be nice to put some moisture back intothem. Markets are going up so far throughthis early harvest.

Brian Schaumburg, Chenoa, McLean County: As of Sept.10, we were 50 percent com-plete on corn harvest. Pooryields on continuous corn arethe norm with 100 to 170 catch-ing most fields. Corn after beansis better by up to 50 bushels ormore, but still nothing great.Soybeans are just starting and

most report better-than-anticipated yields.Seed companies are pushing new products.What about the highly touted hybrids for thisseason that are complete failures? Corn,$4.33, January, $4.48; soybeans, $10.06,January, $10.16; wheat, $6.39 July.

Steve Ayers, Champaign, Champaign County: Combinescontinue rolling under ideal har-vest conditions. Amy Brammerfrom Topflight Grain has a terrif-ic daily newsletter, so here aresome of the yield reports so far:Southwestern ChampaignCounty had 145 acres at 117bushels per acre (bpa); Rantoul

had 165 bpa vs. 190 a year ago, and north-ern Champaign County at 148 bushels peracre, 175, and 195 vs. 200-plus a year ago. Idid hear that some corn was harvested at 13percent! We will start knocking off end rowsthis week. Some of our beans are yellowing,but we are a few weeks off for soy harvest.Looks like remnants of tropical stormHermine will stay south of us. There is notmuch chance of rain again until late thisweek with temperatures of 55 to 80 degrees.Let’s be careful out there!

Wilfred Dittmer, Quincy, Adams County: It’s another fallmorning here Friday and cloudywith only a few showersThursday but the dry down ofcrops continues at a rapid pace.The green cornfields are abouthistory but no combines are run-ning close by. The strong windsof last Monday (Sept. 6) sure

were not needed. It looks like the early beansmay just be starting to turn a little yellow.Late beans are still green. Have a safe weekas the harvest pace picks up speed.

Todd Easton, Charleston, Coles County: Corn harvestmoved rapidly across the countylast week with many producersnearing or over the halfwaymark. The crop is droppingmoisture rapidly and most fieldsare going straight into the bin.Yields are all over the place, butit seems like the majority of the

fields will end up in the 155 to 185 range. Itis apparent that close management of thiscorn crop was the key to better-than-averageyields this year, especially on the nitrogenside. A small handful of combines were out insome bean fields last week, but no yieldreports have been circulated yet. The vastmajority of the beans are still at least twoweeks away from harvesting.

Tom Ritter, Blue Mound, Macon County: A lot of corn dis-appeared from the fields last weekwith yields ranging from very goodto very poor, depending uponwater damage in low-lying areas.The hills have the best corn. Thecorn-on-corn also seems to betaking a little yield hit. Overall, weare approaching 50 percent com-

plete with corn harvest. No soybeans havebeen harvested at this time. Corn moisturehas been astoundingly low with very little cornbeing picked above 18 percent, and most of itin the 15- to 16-percent range, which will defi-nitely help on the drying. Our local GROW-MARK propane man almost seems like he’sthe Maytag repairman this year. Soybeans area week to 10 days away for the most part. Yieldestimates look good, but beans can be verydeceiving, so we will see in another week ortwo how those turn out.

Jimmy Ayers, Rochester, Sangamon County: This pastweek, we really didn’t receivemuch rain, but we are still suffer-ing from what we received lastSept. 2-4. Areas of the countyreceived 8.25 inches in two days.Rivers and streams were floodedmost of the week. Quite a fewareas had higher water than they

have had in years. On the yield side, corn isstill disappointing to most. I haven’t seen a lotof good corn yet. Seed companies and manyindividuals are trying to figure out what theproblems were. A lot of water and wet rootscaused part of it. Other considerations arecorn-on-corn, or corn-on-beans, and nitrogenapplication in the spring or in the fall, varietytype. Corn is much drier than most anticipat-ed. The average moisture was about 17 atone of the big elevators here. One elevatorsaid it took in twice as much corn in one dayas it did in a complete month last year. Therehave been four or five loads of beans broughtin running anywhere from 12 to 13 moisture.

Doug Uphoff, Shelbyville, Shelby County: Harvest is pro-gressing quite rapidly. I remem-ber one year we picked all of thecorn in October. This year, itcould be September, dependingon the weather. There have beenquite a few farming accidentsthis year. I heard of one inAlhambra in which a farmer was

backed over by a combine. We had a kid runa yield sign and t-boned one of our emptygrain trailers. Luckily, he wasn’t hurt. I alsohave heard of a truck running into a bank. Sowe need to just slow down, take our time, andbe careful out there. We probably will cutsome early beans in a week or less. There issome chiseling being done, and fertilizer isbeing applied in the area. Crop prices weresteady for the week. Be careful out there andbe safe. It doesn’t matter how fast you get itdone if you get killed along the way.

David Schaal, St. Peter, Fayette County: It was a big week herefor corn harvest. Farmers were tak-ing corn out of the fields at 15.5 to18 percent moisture. Most are sat-isfied with the yields. Any lowground suffered some water dam-age, but as a whole, the yields arevery respectable. There are someproducers who are cutting April-

planted beans and the yields are very good.Everybody have a safe and prosperous harvest.

Bob Biehl, Belleville, St. Clair County: We received about 1inch of rain from tropical stormHermine, and more rain wasexpected Friday night. Corn har-vest was under way in manyareas. Moisture ranged from dryto about 18 percent in many ofthe fields harvested. Corn is real-ly standing nicely. Yields are very

good with most fields averaging from 165 to185 depending mainly on the soil type. Ithought the heat hurt our yields 10 to 15bushels an acre, and I think that was a closeestimate because otherwise we had nearlyperfect growing conditions this year. We com-pleted harvesting our non-GMO acres and arehauling some to the terminals. So far, everyload has passed, but it goes through severaltests. Some aflatoxin is showing up in areasthat were hit harder with drought conditions.Folks in the Mississippi River bottoms arenearly done, but yields are really off becauseof seep water from high river levels all year.Some beans are starting to turn but are stillprobably 10 to 12 days away from harvest.


CROPWATCHERS

Kevin Raber, Browns, Wabash County: It was raining as Icalled in this report Friday morn-ing. We sure needed it. Maybe itwill help some of the later soy-beans. My corn yields havebeen about 15-20 bushels lessthan what I had anticipated.There have been some beanscut, but I haven’t heard of any

yields.

Ken Taake, Ullin, Pulaski County: It was a dry weekhere in Pulaski County untilThursday about noon. We hadlight showers in the afternoonand then heavy rainsovernight. We ended up withabout 3 inches of rain byFriday morning. Corn harvesthad been progressing pretty

rapidly. We are about half finished with ourcorn harvest. It seems people are every-where on corn harvest progress from afew who are just starting to those who arefinished. A few soybeans have been cut inthe area. We are probably at least a weekto 10 days away from cutting any. Soybeanyields that I have heard of ranged any-where from 30 bushels to the acre up to60. It will be like corn — highly variable.Please remember to be careful.

Rick Corners, Centralia, Jefferson County: Corn harvestwas in full swing and thenHermine dropped by. Don’t thinkshe is nearly as mean as pre-dicted. We only had 0.7 of aninch of rain as of Friday morning.As I said last week, corn is aver-age depending on whether youhad too much rain or too little.

Bean harvest is a ways off yet.

Dean Shields, Murphysboro, Jackson County: Theweather wasn’t quite as hot andhumid as it has been. It madefor better harvesting weather. Istarted harvesting corn about10 days ago and finished upThursday. That is the earliest Ihave been done with corn inmany years. The downside is

we just don’t have the yields here in JacksonCounty that we were expecting. Yields weredown probably 20 to 30 percent from nor-mal. The test weight is light, and the qualitymay not be so good. Some are having prob-lems with aflatoxin, and some elevatorshave rejected loads. The beans were turn-ing, and it won’t be long before we can startharvesting them. It is amazing how manypigweeds and waterhemp survived all of thetreatment we gave them this year. Milo isheaded out really nicely, and it’s lookingpretty good. On the wheat side, if the weath-er stays dry this fall, the talk is we will getback to about the normal acres of wheat.Have a safe harvest.

Ted Kuebrich, Jerseyville, Jersey County: The weatherforecast for Jersey County calledfor 1 to 3 inches of rain Friday.Farmers who were shelling cornwith moisture running 22 per-cent and lower were trying to getas much corn shelled as possi-ble before the rain started. Yieldsare running between 190 to

more than 240 so far. Kernels on the cob arenot as deep and full as in past years. It lookslike the very hot weather we had this summerhad some effect on the grain quality. Prices atJersey County Grain, Hardin: October corn,$4.25; January 2011 corn, $4.69; October2010 beans, $10.29, January 2011 beans,$10.62.

Dan Meinhart, Montrose, Jasper County: The weather wasideal for harvest last week. Lightrain was falling Friday morningand was expected to last a dayor two. Combines were runningin the fields harvesting the April-planted corn. Moisture for thatcorn was running in the teenswith the May and June-planted

corn carrying excessive moisture. Yields varywidely within the same field depending onhow much water damage there was. So far,yields have been satisfactory. Fungicides andinsecticides were applied to some of the July-planted beans during the Labor Day week-end. Some early-planted beans are begin-ning to turn yellow. The forecast is for goodharvest weather this week.

Page 7 Monday, September 13, 2010 FarmWeek

CROPWATCHERS

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

Corn harvest off to quick start; yields disappointingBY DANIEL GRANTFarmWeek

Many farmers in Illinoishave been pleasantly surprisedwith the low moisture levelsthey have been finding incorn.

The condition of the crop,which in numerous casesalready is drier than it was atany time during the 2009 har-vest season, is expected tolead to a quick harvest andgreatly reduce farmers’ dryingexpenses compared to lastyear.

Corn harvest as of the firstof last week was 7 percent

“I thought going in I’d behappy to hit my 10-yearrolling average, which is in the185 (bushels per acre) range,”Fourez said. “But we’ll proba-bly miss it by 20 bushels (onthe downside).”

Kent Schleich, a FultonCounty farmer who is the IFBDistrict 8 director and chair-man of the Profitability Team,said corn yields in his areacould be down 25 percent ormore from historical averages.

Hadden repor ted cor ny ie lds in h i s a rea so fa r

a re l e ss than expected .“The expectations were 160

to 200 (bushels per acre), but Ithink a lot of it will be in the140 to 170 range,” Hadden said.

Hadden said his area as oflast week had received 45 to 46inches of rain since April 24.Hot, dry conditions in Augustand possible compaction issuesfrom last year’s wet harvest alsocould be playing a role, Fourezsaid.

“It’s kind of been a disap-pointing harvest so far,” headded.

complete statewide comparedto 1 percent last year and thefive-year average of 2 percent.

“The upside (so far thisharvest) is we’re picking cornthat is testing 15 to 16 percent(moisture) right out of thefield,” said Dale Hadden, aMorgan County farmer who isthe Illinois Farm Bureau Dis-trict 10 director and alsoserves on the IFB ProfitabilityAdvisory Team, which metlast week in Bloomington.

The portion of the corncrop (57 percent) that wasmature last week was morethan double the five-year aver-

age of 24 percent.“Compared to last year, it

(harvest) will be real quick,”said Steve Fourez, a VermilionCounty producer and Prof-itability Team member whoreported moisture levels lastweek in his area ranged from15.5 to 18.5 percent. “Theway guys have started to go,by mid- to late October every-thing could be off (finished).”

Unfortunately, corn harvestalso may go quickly this sea-son due in part to the fact thatmany farmers are handlingfewer bushels than theyexpected.

Gordon VonQualen, Gardner, unloads a portion of his corn crop that so far this harvest hasn’t measured upto earlier yield expectations. VonQualen began corn harvest on Labor Day and yields on his farm thus farhave averaged below 150 bushels per acre on ground that in recent years averaged about 200 bushels peracre. He attributed lagging corn yields to excessive rain in June followed by a lack of moisture in July andAugust. USDA on Friday projected an average corn yield in Illinois of 174 bushels per acre, down from itsAugust estimate of 180 bushels. (Photo by Ken Kashian)

Your Time…Your Talent…Make the Most of It!Join the ACTION TEAMS! See what you can do with your talent… while making the most of your time! The ACTION TEAMs are made up of volunteers who – in only two days – turn their unique ideas and experiences into a year of activities and amazing results. Whether you’re an experienced leader or new to Farm Bureau, we want you to bring it!

Choose It!

Teams meet twice a year to brainstorm and develop a plan for one or two statewide projects.

See It!Your proposal is presented to the IFB Board and, if approved, is set into action.

Do It! Get an application from your county Farm Bureau. Must be returned by December 10.

MT270T0

MARKETS


It’s been a long road for U.S. beef producers, but they finallyappear to have established a foothold in some key export mar-kets.

U.S. beef exports, which were devastated in 2003 when BSEwas discovered in an American cattle herd, so far this year areoff to one of the best starts since the BSE incident caused morethan 50 countries to ban imports of U.S. beef.

U.S. beef exports in June were up 25 percent compared toJune 2009, and for the first half of the year, beef exportsincreased 14 percent compared to a year ago, according to theU.S. Meat Export Federation (USMEF)

In Russia, which reopened its borders to U.S. beef in Novem-ber 2007, U.S. beef exports this year are up nearly 300 percentand are at the highest level since 2003.

“More muscle meat is going into high-quality (Russian)restaurants,” said John Brooks, USMEF regional director ofEurope, Russia, and the Middle East. “We are getting U.S. beefback into that sector, but it’s proving to be a challenge.”

Brooks noted U.S. beef exports to Russia likely will decline incoming months, though, as the volume of sales is nearing tariffrate quotas.

Elsewhere, the beef muscle meat business is increasing inEgypt as U.S. prices are competitive with those from SouthAmerica. Economies generally are growing in the Middle Eastdue in part to higher oil prices in recent years, Brooks said.Sales of U.S. beef are on an uptrend in the European Unionpartly because of the consistent quality of the American prod-uct, according to Brooks.

“Three years ago, most U.S. beef (exported to Europe) wasgoing to Germany and Italy. Now, we have a regular market in 12countries,” said Brooks, who predicted a 50 percent increase inU.S. beef sales to Europe in 2011. “It’s a small market but grow-ing fast.”

The U.S. in 2009 supplied 6 percent of Europe’s chilled beefimports compared to just 1 percent in 2007.

Meanwhile, U.S. beef exports to Asia, including Japan, wereup 29 percent the first half of the year despite a 20-month agerestriction on eligible cattle.

And in South Korea, the export volume the first half of 2010was nearly double the pace of 2009. — Daniel Grant

Beef exports regain lost ground

No sign of farmland market bubble — yetBY DANIEL GRANTFarmWeek

Prices for top-quality farm-land so far this year haveinched to historically high lev-els, but there are no signs themarket has entered a bubble,according to an expertfrom the ag lendingindustry.

Terry Hinds, vicepresident of businessand corporate relationswith 1st Farm CreditServices in Normal,last week told the Illi-nois Farm BureauProfitability AdvisoryTeam returns on farm-land remain strong rel-ative to other investments.

“The ag economy continuesto be relatively strong com-pared to the rest of the econo-my,” Hinds said. “That’s led tosome pretty solid real estatevalues.”

Hinds reported 1st FarmCredit Services tracks farm-land values and estimatedprices in July compared to theprevious year increased 4 per-cent for Class A ground, 5.2

percent for Class B ground,and 2.4 percent for Class Cground.

Farmland prices in the stateas of July ranged from $6,302to $8,797 per acre for Class Aground, $4,700 to $6,500 for

Class B ground, and $2,502 to$7,000 per acre for Class Cground.

“Farm real estate (value)remains strong,” said Hinds,who noted Illinois farmlandvalues from 1970 to 2010appreciated annually by anaverage of 5.9 percent. “That’sa pretty good long-term rateof return for farmland.”

And the trend could contin-ue — 1st Farm Credit Services

anticipates strong commodityprices moving forward and apossible increase in outsideinvestors who may seek farm-land as a safe investment.

But even if the farmlandmarket doesn’t crash similar to

what happened in thehousing market, thereare some potentialcracks in the foundationthat could threatenfarmland values downthe road.

“The biggest risk isinterest rates,” saidHinds, who recalledinterest rates for farm-land in the 1980s reachednearly 20 percent.

The inevitable rise of inter-est rates, particularly if it cor-responds with a drop in farmincome, could reduce demandand prices for farmland. Hindsencouraged farmers who havenot done so already to lock ina portion of their current debtat low interest rates.

While the overall farmlandmarket was positive, not allfarmland prices increased inthe past year. Hinds said the

market has softened for lower-quality farmland and transi-tional land near urban areas.

“The lower-quality land

(and recreational land) markethas softened,” Hinds said.“We’re just not seeing as muchdemand for that property.”

‘The ag economy continuesto be relatively strong com-p a r e d t o t h e r e s t o f t h eeconomy’

— Terry Hinds1st Farm Credit Services

SCHOLARSHIPS


GROWMARK announces collegiate scholarship winners Thirty-nine college students

from Illinois, Indiana, Iowa,Minnesota, Missouri, Pennsyl-vania, and Wisconsin will beable to continue their educa-tion with help from the region-al agricultural supply coopera-tive, GROWMARK.

They are recipients ofGROWMARK-sponsoredscholarships aimed at promot-ing higher education in agricul-ture and business.

“GROWMARK investsmore than $41,000 annually onscholarships. We’re investingtoday for a return tomorrow,”says Steve German, GROW-MARK university relations andmember employment manager.

GROWMARK has beensupporting college studentswith scholarships since the ear-ly 1960s. Currently, they areawarded to students majoringin agriculture or accounting at14 universities and colleges.

Each educational institutionis responsible for the selectionprocess and awarding scholar-ships. University scholarshiprecipients are honored eachyear at the GROWMARKannual meeting in Chicago.

Students from Illinoisreceiving scholarships are:

Illinois State UniversityLucas Benning, son of

Carl and Karen Benning ofShobonier, majoring in agrono-my management.

John Heiser, son of Jeffand Debbie Heiser of Byron,majoring in agricultural educa-tion.

Michael Moore, son ofRonald and Deborah Moore ofRoseville, majoring in horticul-ture.

Rosalie Sanderson, daugh-ter of Dan and Hattie Sander-son of Clare, majoring in ani-mal science industry manage-ment.

Kaylin Stoddard, daughterof Bruce and Carolyn Stoddardof Monticello, majoring inaccountancy.

Illinois Wesleyan UniversityBrittany Kiefer, daughter of

Rich and Gale Kiefer of Grid-ley majoring in accounting.

Iowa State UniversityJaymes Maciejewski, son

of Dan and Peg Maciejewski ofPrinceton, majoring in agricul-tural studies.

Murray State UniversityBecky Mosbacher, daugh-

ter of Steven and Doris Mos-bacher of Prairie du Rocher,majoring in agribusiness.

Southern Illinois UniversityChristy Ford, daughter of

J.L. and Angie Ford of Green-field, majoring in general agri-culture.

Kelsey Graber, daughter ofJohn and Julie Graber of Hey-worth, majoring in agribusinesseconomics.

Bobbi Jean Petet, daughterof Robert Petet of Fairfield,and Debbie Petet of McLeans-boro, majoring in plant and soilscience.

Jordon Ridgely, son of Janand Lisa Ridgely of Olney,majoring in agribusiness eco-nomics.

Derek Weiler, son of Billand Debbie Weiler of Clare-mont, majoring in agribusinesseconomics.

University of IllinoisCassie Becker, daughter of

Steve and Amy Becker of Car-

lyle, majoring in agriculturalcommunications.

Hayley Bunselmeyer,daughter of Bob and Sue Bun-selmeyer of Decatur, majoringin crop sciences.

Travis Huisinga, son ofRoger and Barbara Huisinga ofMansfield, majoring in agricul-tural and consumer economics.

Carrie Kuhns, daughter ofErvin and Nancy Kuhns ofSullivan, majoring in agricultur-al leadership education.

David Marburger, son ofEdward and Christina Marburg-er of Mount Olive, majoring incrop sciences.

Amelia Martens, daughterof Patrick and Annette Martens

of Orion, majoring in agricul-tural communications. She isthe recipient of the JonathanBaldwin Turner Scholarship.GROWMARK sponsors thescholarship to honor Melvin E.Sims, president of GROW-MARK Inc. from 1959-1980.

Brad Pilcher, son of Mikeand Mary Jo Pilcher of Paxton,majoring in agricultural salesand marketing. He is the recipi-ent of the Herndon Scholar-ship, established to honor FredE. Herndon, president of aGROWMARK predecessorcompany from 1931-1959.

University of Wisconsin -Platteville

Christopher Flikkema, son

of Alan and Rosemary Flikke-ma of Lanark, majoring in agri-cultural business.

Ashley Veldhuizen, daugh-ter of Vern and Alice Veld-huizen of Richmond, majoringin agricultural education.

Western Illinois UniversityRoss Fogle, son of David

and Leanne Fogle of Con-gerville, majoring in agrono-my.

Jordan Haney, son of Jeffand Cheri Haney of Winches-ter, majoring in agriculturebusiness.

Mellisa Herwig, daughterof Tim and Kelly Henert ofFranklin Grove, majoring inanimal sciences.

RESEARCH


U of I, ISU prove cattlemen can save by feeding DDGsBY KAY SHIPMANFarmWeek

Researchers at the Univer-sity of Illinois and IllinoisState University (ISU) haveproven cattlemen can reducetheir feed costs by incorpo-rating distillers dried grains(DDGs) into their livestockfeed.

Although the universitiesresearched different dietcombinations, the separatestudies support feeding ofco-products to reduce feedcosts.

U of I researchers discov-ered that feeding co-productsand cornstalk residue in thewinter can save cow-calf pro-ducers up to $1 per day percow when compared to feed-ing hay.

ISU researchers learnedfeeding corn silage and highmoisture DDGs saved from$32 to $221 per cow per year,depending on the percentageof DDGs contained in theration.

“If you incorporate DDGsin the cattle’s diet, you willsave considerable money,”

said Paul Walker, ISU animalscience professor who con-ducted the study. Walkeradded the less expensive cornsilage/DDGs diet means cat-tlemen would save less perday compared to ahay/DDGs diet.

“Our goal is to help pro-ducers identify which feed-stuffs and delivery methodsbest fit their operation,resulting in the lowest possi-ble feed cost for their opera-tion and the most profitabili-ty,” said Dan Shike, U of Iassistant professor of animalsciences who conducted thestudy.

“Regardless, producershave options and can increasetheir profitability using com-binations of co-products.”

At the Orr Research Cen-ter near Perry, U of Iresearchers conducted feed-ing experiments with cowscalved between January andMarch. They were evaluatedfrom calving until breeding.

Shike noted cattlemen haveseveral feed options availableincluding corn co-products

and cornstalks. Cornstalkbales are an adequatesource of energy, but arelow in protein and need tobe supplemented, especiallyfor cows in early and peak

lactation, he said. The U of I researchers

compared new co-productsdeveloped from improvedfractionation processes. Theycompared different diets:free-choice cornstalk residuewith 14.3 pounds of distillersdried grains with solubles(DDGS); free-choice corn-stalk residue with 9.7 poundsof corn bran and 4.8 poundsof DDGS; free-choice corn-stalk residue with 11.2pounds of corn bran, and 3.3pounds of high-proteinDDGS; and free-choice hay.

“We wanted to find themost economical way to feedcows in the winter withoutsacrificing performance,”Shike said. “Our studyrevealed that producers couldsave about $1 a day per cowwhen feeding a combinationof cornstalk residue and co-products as compared tohay.”

The ISU study comparedthe performance of heifers in

late gestation and cows inearly lactation fed a typicalration of shelled corn, soy-bean meal, and corn silagewith those fed rations thatreplaced the corn and soy-bean meal with three levels ofDDGs.

The high-DDGs rationssupplied 12 percent crudeprotein (CP)/19 percentDDGs on a dry-matter basis;16 percent CP/35 percentDDGs; and 20 percentCP/50 percent DDGs.

The per-day cost for high-DDGs rations on a dry mat-ter basis was $1.16 for 19percent DDGs, $1.23 for 35percent DDGs, and $1.22 for50 percent DDGs.

To have value as cattlefeed, distillers grains must behigh in protein and fat, saidISU’s Walker.

Shike advised cattlemen tomake arrangements now tobuy cornstalk bales and toprice co-products, dependingon available storage.

Cows eat a ration high in distillers grains as part of an Illinois State University research study on the universi-ty’s farm near Lexington. (File photo)

RESEARCH


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Jarrad Prasifka, left, a researcherwith the University of Illinois’ En-ergy Biosciences Institute, demon-strates during the U of I EnergyFarm Tour last week how to findcaterpillar damage in cordgrass.Prasifka, who is studying possibleinsect pests of biomass crops,gave one of several field presen-tations on the research farm lo-cated south of the Urbana cam-pus. (Photo by Kay Shipman)

Scientists ‘handicapping’ potential biomass pestsBY KAY SHIPMANFarmWeek

University of Illinoisresearchers are trying to stayahead of possible biomasscrop pests and resulting prob-lems for those crops as well asfor corn and soybeans.

“We are trying to targetwhich (biomass crop) pests tofocus on, and what (are) thepotential challenges if (bio-mass crops) serve as reservoirsfor viruses or leaf hoppers,”said Mike Gray, U of I profes-sor of agricultural entomology.

Gray and Jarrad Prasifka, aresearcher with the U of I’sEnergy Biosciences Institute,described their research oninsect pests during last week’sEnergy Farm Tour. It was thesecond open house and tourfor the new research farmlocated south of the U of I’sSouth Farms.

“We’re trying to handicapthem (insect pests),” Prasifkasaid. “No matter what biomassfeedstock becomes common,nature will eventually catch upto it.”

On the Energy Farm,researchers intentionally haveinfested plants in mini plotswith insect pests. One projectis comparing the effect ofinsects on miscanthus andcorn that are growing besideeach other.

Thus far, the insects preva-lent in Illinois don’t seem todamage biomass crops,according to Prasifka.

However, researchers arepaying specific attention toinsects that feed on perennialbiomass crops as well as othercrops to prevent situations inwhich pests would move from

Energy Farm at a glance

The University of Illi-nois Energy Farm is oneof the university’snewest research farmsand is part of the EnergyBiosciences Institute:• Initiated: 2007 • Size: 320 acres• Projects: More than100 research and pro-duction activities• Crops: A wide variety,including prairie plants,perennial grasses, corn,soybeans, and trees

one type of crop into another.In general, grasses that are

native to Illinois, such asswitchgrass and some prairiegrasses, have more insect pestscompared to miscanthus,which originated in Asia.

From work over the lasttwo years, researchers havelearned biomass crop pestsvary from region to region.

While Midwestern farmerscontend with similar pests,farmers in the North andthose in the South face dif-ferent pests, Prasifkaexplained.

Researchers also discoveredlittle is known about someperennial grass pests. Forexample, a caterpillar thatdestroys cordgrass seed pro-duction was discovered in1916, but apparently hasn’tbeen studied since 1917.

“The humbling part is toadmit what we don’t know,”Prasifka said.

FB IN ACTION


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Always follow IRM guidelines and grain channeling requirements.

Golf outing generates$12,100 for AITC program

The Kendall County Farm Bureau Ag in the Classroom(AITC) program will benefit to the tune of $12,100, thanks tothe recent county Farm Bureau Young Leaders’ “Last Chance ofthe Summer” golf outing.

One hundred and six golfers, including 11 members of theYoung Leaders Committee, participated in the outing at White-tail Ridge Golf Course. The golf event raised $10,000 for theAITC program.

A drawing for a trip to Riviera Maya, Mexico — the ticketsfor which had been sold all summer — was conducted duringthe final day of the golf outing.

That project generated another $2,100 for the AITC program.

Stephenson Co. FB hostsits adopted legislator,constituents for ag tours

Scott Brenner, herdsman for Hunter Haven Farms near Pearl City, explained to Sen. Ed Maloney (D-Chicago,in black shirt) and several of his constituents the workings of the dairy operation. The dairy farm stop wasone of several during “A Day in the Country” sponsored by the Stephenson County Farm Bureau for Mal-oney, the county’s “adopted” legislator. (Photo courtesy of Stephenson County Farm Bureau)

BY BRUCE JOHNSONStephenson County Farm

Bureau (SCFB) recentlymarked its third “A Day in theCountry” with its adopted leg-islator and a busload of hisconstituents. The event show-cased agriculture in the coun-ty and the people involvedwith it.

The visitors included“adopted” legislator state Sen.Ed Maloney (D-Chicago) anda group from his district thatincluded teachers, schooladministrators, students,police, and public service pro-fessionals.

The tour started with astop at theFreeport/Stephenson CountyVisitor’s Center before head-ing to Hunter Haven Farmsnear Pearl City. Scott Brenner,the farm’s herdsman, andNate Dinderman, feed manag-er, gave the group a tour ofthe 850-cow dairy operationand its methane digester sys-tem. A newborn calf was a hitwith visiting children.

At Bremmer Farms nearPearl City, the group ate local-ly produced rib eye sandwich-es and hamburgers for lunch.SCFB Vice President ChadBremmer gave a tour of hisfarm, including a line-up ofhis farm equipment.

The next stop was in Kentand Pearl Valley Eggs/PearlValley Organix, where thegroup was welcomed by BenThompson. The urban visi-tors were impressed with the1.1-million hen layer opera-tion and organic fertilizer pro-duction facility. The compre-hensive tour gave the visitorsa new perspective on the com-plexities of the poultry indus-try.

The final stop was atFreeport’s Alber Ice CreamParlor. The visitors received agift bag with assorted itemsand agricultural information.

SCFB and Maloney werefirst connected through Illi-nois Farm Bureau’s Adopt-a-Legislator program in Sep-tember 2004. County Farm

Bureau leaders plan to makeanother visit to Maloney’sChicago district on Friday andpresent him with a “Friend ofAgriculture” award.

The Maloney relationshiphas spawned discussion ofother opportunities includ-

ing return visits to thecounty by students of theChicago High School forAgricultural Sciences andhome-schooled groups. Italso has sparked discussionsamong local and regionaltravel and tourism profes-

sionals regarding agri-tourism and educationalpartnerships.

Bruce Johnson is the manager ofthe Stephenson County FarmBureau. He can be reached via e-mail at [email protected].

Boone County Farm Bureauswill sponsor a bus tripWednesday, Oct. 13, to OldWorld Wisconsin. Participantswill see restored structures anddemonstrations of the workand play that took place duringthe early 19th Century. Lunchwill be at the Clausing Barncafé. This is a self-guidedtour, but there will be an all-day tram transportation pass.The bus will leave the FarmBureau office at 8:30 a.m. andreturn by 5 p.m. Cost is $32for members and $37 for non-members. Call the FarmBureau office for reservationsor more information.

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

FROM THE COUNTIES


GRUNDY — FarmBureau and WILL

AM580 Radio will sponsor afall marketing outlook meetingat 6:30 p.m. Tuesday at theAmerican Legion, Mazon.Pizza will be served. The pan-el will feature Bill Gentry, RiskManagement Commodities,Lafayette, Ind.; Curt Kimmel,Bates Commodities, Normal;and Jacquie Voeks, StewartPeterson Group, Champaign.Call the Farm Bureau office at815-942-6400 for dinner reser-vations or more information.

HANCOCK — Theannual conservation

tillage field day will be from 4to 7 p.m. Tuesday north ofCarthage on Highway 94.There will be an educationseminar and pork chop dinnerserved after the field demon-strations. Mike Rogge, Univer-sity of Illinois Extension cropspecialist; Dick Burling, Han-cock County Farm ServiceAgency county executive direc-tor; and Lori Bollin, HancockCounty Natural Resources andConservation Service (HCSW-CD) district conservationist,will be the speakers. Continu-ing education credits havebeen applied. Call BeckyBuckert at the HCSWCDoffice at 217-357-2188, ext. 3,for more information.

• The Illini West FFA willsponsor its annual plot dayfrom 11 a.m. to 1 p.m. Satur-day at the LaHarpe plot, southof the clubhouse on South GStreet. A barbecue pork sand-wich lunch will be served.

JACKSON — Member-ship dues are due now. If

you have questions about yourmembership, call the FarmBureau office.

LAWRENCE — FarmBureau will sponsor a

bus trip Thursday, Oct. 14, tothe Covered Bridge Festival,

Parke County, Ind. The buswill leave the First ChristianChurch parking lot inLawrenceville at 6:30 a.m.(Central Daylight Time) andreturn by 8:30 p.m. Cost is$15, which includes trans-portation, snacks, two-hourtour of covered bridges, anddinner. Call the Farm Bureauoffice at 618-943-2610 by Fri-day, Oct. 8, for reservations ormore information.

LEE — Farm Bureaumembers may buy one

slow moving vehicle emblemat the Farm Bureau office andget one free. This is in honorof National Farm Safety andHealth Week Sept. 20-24.

STARK — Farm Bureauhas “Pass with Caution”

stickers, slow moving vehicleemblems, and “Farm CountryStay Alert” signs available.

Call the Farm Bureau office at309-286-7481 for more infor-mation.

• Raffle tickets for a pedaltractor are available at theFarm Bureau office. Proceedswill benefit Ag in the Class-room activities. Drawing willbe Monday, Sept. 20, after theFall Festival. Call the FarmBureau office for more infor-mation.

UNION — Member-ship dues are due now.

If you have questions aboutyour membership, call theFarm Bureau office.

VERMILION — FarmBureau, Vermilion

Advantage, and NeuhoffMedia will sponsor a candi-dates’ forum on agriculturaland rural issues at 7 p.m.Thursday at the Farm Bureauauditorium. Candidates for

the 52nd District Senate seatand the 104th and 105th Rep-resentative District seats havebeen invited to attend. Theforum will be broadcast onWDAN and {vermilioncoun-tyfirst.com}.

WINNEBAGO — TheWinnebago and

Boone Prime Timers willsponsor a “Treat your Senses”tour Thursday, Sept. 30. Thegroup will tour the WindRidge Herb Farm at 9:30 a.m.Following the tour, partici-pants will go to theMcEachran Homestead at11:30 a.m. for wine tasting,lunch, and a presentation ofthe history of the homestead.Cost is $22. Call the FarmBureau office at 962-963 forreservations or more informa-tion.

• The Winnebago and

0810-556HO

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Auction CalendarThurs. Sept. 16. 7 p.m. Cass Co. LandAuction. Mary L. Lockhart Estate. Sanert

Auction Service.www.sanertauctions.com

Thurs., Sept. 16. 10 a.m. FarmlandAuction. Donald Hougas, NORWAY, IL.Dick McConville and Marty McConville,Auctioneers. www.mcconvillerealty.com

Sat., Sept. 18. 10 a.m. Farm machinery,livestock and lawn eq. Les Reel and Jim

Miller.Sat., Sept. 18. 9:30 a.m. Real Estate

Auction. Shirley M. Miller Trust, DIXON,IL. Lenny Bryson and Mark Ebert,

Auctioneers. topauctions24-7.com/paspolo

Wed., Sept. 22. 11:30 a.m. WhitesideCo. Land Auction. Fulton Land

Development, LLC, FULTON, IL. LennyBryson, Auctioneer.

www.lennybrysonauctioneer.comWed., Sept. 22. 7 p.m. Land Auction.

Lotta Moore Heirs, CLINTON, IL.Haycraft Auction Co. Inc.

www.haycraftauctions.comFri., Sept. 24. 10 a.m. 277 Ac. MacoupinCo. Farmland. Estate of Catherine Klaus,

WAGGONER, IL. Mike Crabtree,Auctioneer.

www.mikecrabtreeauctions.comSat., Sept. 25. 10 a.m. Farm machinery.Estate of William E. Bittner, PAW PAW,

IL. Espe Auctioneering.www.espeauctions.com

Wed., Sept. 29. 6 p.m. 71.49 Ac.Marshall Co. Wayne Gallup and ElaineM. Hecathorn, LACON, IL. Tim Placher

Auctions.

PROFITABILITY


Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $33.89-$43.00 $39.3140 lbs. $52.00-$59.10 $57.4350 lbs. n/a n/aReceipts This Week Last Week

32,872 26,527*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 $78.84 $75.73 3.11Live $58.34 $56.04 2.30

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn09-2-10 13.9 22.1 38.108-26-10 8.0 27.5 51.3Last year 12.6 17.5 49.0Season total 3.0 262.2 15.8Previous season total 7.4 201.8 25.5USDA projected total 1470 1200 1975Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $97.46 $95.45 2.01Heifers $97.51 $96.00 1.51

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 Change113.71 113.85 -0.14

CME feeder cattle index — 600-800 Lbs.

Slaughter Prices - Negotiated, Live, wooled and shorn 115-145 lbs. for128.09-144 $/cwt., dressed, no sales reported.

Lamb prices

More consolidation on horizon in plant food world?BY ROD WELLS

The plant food landscapechanged dramatically last springwith the acquisition of TerraIndustries by CF Industries.

The saga ofthis combina-tion playedout in thepress for morethan a yearand includedan unsolicitedoffer for CFby Agrium.

Prior to the consummationof the Terra/CF deal, fertilizerbehemoth Yara stepped inwith a proposal to acquire Ter-ra. Stories such as this certain-ly are not the “norm” in the

fertilizer industry. Now word comes of yet

another unsolicited acquisitionof a global fertilizer player.

On August 23, PotashCorpsaid its board of directors hadunanimously voted to reject anunsolicited offer by mininggiant BHP Billiton. The BHPoffer of $130 per share wouldcreate a deal valued at $40 bil-lion.

In comments following thepublic notification of theoffer, PotashCorp (PCS)Chairman Dallas Howe Jr.noted, “The fertilizer industryis emerging from the recentglobal economic downturn,and we feel strongly thatPotashCorp shareholders

should benefit from the cur-rent and potential value of thecompany.”

To be sure, BHP has thefinancial wherewithal to pur-sue the PCS deal. The compa-ny reported profits for theyear ending June 30, 2010, of$12.7 billion on sales of $52.8billion.

PotashCorp currently hasan estimated 20 percent of theworld potash capacity underits direct control, making it thelargest producer in the world.In addition, the company alsoowns phosphate and nitrogenproduction assets, each ofwhich holds the world’s No.three position.

On the heels of the possi-

ble BHP/PCS combination,speculation continues on apotential merger within theRussian fertilizer industry.Large individual ownershippositions have been taken intwo large potash producers,Uralkali and Silvinit, withinthe last several months.

A combination of these twoproducers would result in theworld’s second-largest potashproducer.

The Russian InternationalNews Agency, RIA Novosti,reported Russian billionaireSuleiman Kerimov, a substan-tial shareholder in both Ural-kali and Silvinit, met withBelarusian President Alexan-der Lukashenko and offered to

purchase 51 percent of state-owned producer Belaruskalifor a reported $7.5 billion.Belarus denies this meetingtook place. A three-way com-bination of Uralkali, Silvinit,and Belaruskali would easilyform the world’s largest pro-ducer of potash.

There is truly belief in thelong-term value of fertilizerand the agricultural sector, giv-en the increased demand forfood and feed in this world.

And so goes another boringday in the fertilizer business.

Rod Wells is GROWMARK’sdirector of agronomy sales andoperations. His e-mail address [email protected].

Rod Wells

USDA raises income, export projections for agricultureBY DANIEL GRANTFarmWeek

The near-term economicoutlook for U.S. agricultureappears to be favorable, basedon recent USDA projections.

USDA this month forecastag exports for fiscal year 2011will reach $113 billion. If real-ized, revenue generated fromag exports would be the sec-ond-highest on record andwould be up $5.5 billion fromthe 2010 estimate and nearly$17 billion more than in 2009.

USDA this month also pro-jected a sharp rise (24 percent)in net farm income. Net farmincome in 2010 was projected

at $77.1 billion, which wouldbe an increase of $14.9 billioncompared to 2009.

The current net farmincome projection for 2010 alsowould be $12.3 billion above

the average for the past decadeof $64.6 billion per year.

“Increased agriculturalexports, especially of grainsand meat, have helped drivethis rebound,” said Ag Secre-tary Tom Vilsack.

The jump in ag exports andincome projections are due toincreased demand, accordingto Darrel Good, University ofIllinois Extension ag econo-mist. Demand for grain andmeat has increased due in partto economic recovery in partsof the world along with ashortage of grain caused by asevere drought in Russia andsurrounding countries.

“In general, you have to beimpressed with the strongdemand scenario,” Good said.“We’re seeing strong demandfor grain. The Russian (drought)situation adds to that.”

U.S. grain and feed exportswere projected to increase $4billion in fiscal year 2011,although oilseed exports wereexpected to decline by $2.6 bil-lion due to a rebound in SouthAmerican soybean crush.

Meanwhile, meat exports thefirst half of this year increased14 percent for beef and 3 per-cent for pork compared to thesame time last year.

Other economic indicatorsare positive for the ag industry.USDA projected farm busi-ness equity (assets minus debt)will rise 3.5 percent. The valueof farm business real estatewas projected to increase 2.9percent while farm businessdebt was projected to decrease4.2 percent.

“As the rest of the Ameri-can economy climbs out ofthe recession, American agri-culture is helping lead thecharge,” Vilsack said. “Weexpect to sustain this impor-tant progress.”

Overall, U.S. agriculture thisyear is expected to generate atrade surplus of $30.5 billion.

USDA to study corn production practices

With near-record-breaking corn plantings in the ground, theU.S. Department of Agriculture (USDA) soon will begin con-tacting corn producers to learn about their production prac-tices during the 2010 growing season.

As part of the Agricultural Resource Management Survey(ARMS), USDA’s National Agricultural Statistics Service(NASS) will gather data on farmers’ chemical use, pest man-agement, and irrigation practices for corn.

“Conducted every fall, ARMS serves as the primary sourceof information on the production practices, resource use, andeconomic well-being of America’s farm operations and farmhouseholds,” said Brad Schwab, director of the Illinois NASSfield office.

“The survey results help agricultural leaders and decision-makers better understand how producers cope with risk, adaptto policy changes, and make decisions about chemical use, newtechnologies, and many other aspects of farming,” he said.

This year, ARMS will focus on corn, including both conven-tional and organic varieties. This will be the first time since2005 that ARMS has focused on corn production and the firsttime ever that it has looked at organic corn production.

Beginning in October, NASS representatives will conductface-to-face interviews with nearly 7,500 corn growers nation-wide, including about 350 in Illinois.

“When contacted, producers will be asked to provide informa-tion on their fertilizer, nutrient, bio-control, and pesticide appli-cations, as well as their pest management and irrigation prac-tices,” added Schwab, “Early next year, we will follow up withsome of the participants to obtain additional economic data.”

As with all NASS surveys, information provided by respon-dents is by law confidential. NASS safeguards the privacy of allrespondents and publishes data only in aggregate form, ensuringthat no individual operation or grower can be identified.

For more information on NASS surveys and reports, visit{www.nass.usda.gov}, or call the NASS Illinois field office at800-622-9865.

‘ In general, youh ave t o b e i m -pressed with thes t rong demandscenario.’

— Darrel GoodU of I ag economist

PROFITABILITY


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CASH STRATEGISTCorn Strategy

�2010 crop: Decemberfutures have moved to a levelwhere upside progress will bemore difficult. History hasproven it’s rarely a mistake tosell a good harvest rally.Boost your sales to 70 percentnow, especially if you storecorn commercially. Storagecosts are too steep to warrantstoring corn off the farm.

�2011 crop: Given currentprices and the possibility ofexpanded plantings, make a 10percent sale now.

�Fundamentals: USDA’sreduction in its yield forecastto 162.5 bushels will encour-age market bulls to believe theyield forecast will eventuallydrop below 160 bushels. Weare not as certain, for reasonsoutlined in the article to theleft. At the same time, onehas to consider the potentiallynegative demand implicationsof higher prices at the begin-ning of the marketing year.Even though we don’t have atrue “drought” crop, the situa-tion brings to mind the adage,“short crop, long tail.” Soybean Strategy

�2010 crop: Demandneeds to remain exceptionallystrong to hold prices at theselevels. A South Americancrop problem is about theonly thing that could carryprices higher yet. Boost salesto 70 percent now, especially ifyou store soybeans commer-cially.

�2011 crop: If SouthAmerica has another big crop,new-crop prices will be signifi-cantly lower this spring. Makean initial 10 percent sale now.

�Fundamentals: USDA’sincrease in yield and produc-tion will make it more diffi-cult for prices to hold currentlevels. Demand is strongenough to keep prices fromcollapsing, but isn’t strongenough to keep prices fromdropping 50 to 80 cents intoharvest. Chinese demandcontinues to be good, butthere are signs those ship-ments may start to slow. Thatcould precipitate a slowing ofnew sales to China. Crushmargins on imported soy-beans remain slightly negativefor the Chinese.

Wheat Strategy�2010 crop: Since prices

broke from the early Augusthigh, the market has shiftedinto a sideways trend. A breakbelow the 20-day moving aver-age on Chicago Decemberfutures would suggest thetrend could be turning downagain. Use current strength forcatch-up sales. Storage hedges,or hedge-to-arrive (HTA) con-tracts for winter delivery arestill the best tool.

�2011 crop: Use rallies to$7.40 on Chicago July 2011futures for catch-up sales. If

basis is wide compared to thispast summer, consider an HTAcontract.

�Fundamentals: The latestUSDA report took away some ofthe bullish argument with worldwheat ending stocks increased 3million metric tons (mmt) to177.79 mmt. The trade had beenexpecting to see a modest tight-ening. U.S. ending stocks werelowered to 902 million bushelsbecause of an increase inexports, but it’s still a historicallylarge number. Export salesremain good, with sales totaling1.613 mmt. last week.

The release of the USDASeptember crop report makesit easier for analysts to identifythe corn yield potential. Thisis the first time USDA releasedthe plant and ear populationdata collected in the objectiveyield states.

Using the ear population ineach of the states and the stateyield forecasts, one can derive apotential ear weight. Combinedwith historic data, one can thenstart to project a potential levelfor the final yield.

The pattern of the weeklycrop condition ratings and theweather are somewhat similarto 1998. Using that as a guide-line, and the fact that maturityis ahead of schedule, wewouldn’t expect the ear countsto drop much, if at all, fromthis report.

The implied ear weight forthe 10 objective yield stateswas .3458 of a pound. Theaverage ear weight over thepast five years has declinedslightly through the series of

Basis charts

reports. But the final weightwas less than 1 percent belowthe September weight. In1998, the final weight wasabove the September level.

But allowing the ear weightto decline to .34 of a pound, alevel closer to the average,would result in a yield close to161 bushels. Even allowingfor the largest decline in recentyears only drops the yield to158.5 bushels. But given theadvanced maturity, we areinclined to think USDA shouldhave a good grasp on earweights and ear counts.

From a production perspec-tive, acreage will come into playin the October report. USDAanalysts will have the acreagedata you report to your localFarm Service Agency (FSA)office available to them. Somebelieve the current corn acreagenumbers are a little too low andsoybeans acreage is too high.One firm thinks corn acreage is1 million acres too low.

On average, though, theacreage tends to decline slight-ly since the USDA startedusing the FSA data. But a 1-million-acre increase wouldadd 160 million bushels to thecrop size.

For soybeans, it’s not as easyto draw parallels to prior yearsbecause pod/seed developmentis still ongoing when USDAcollects data for the Septemberreport. But, on average, podcounts and pod weights tend togo higher. That implies a largeryield is possible.

Using 1998 as a possibleguideline, yields went up in theSeptember report, then downslightly by the final number.That, and current data, indi-cate this is going to be a goodcrop.

Cents per bu.

Corn yield coming into focus

PERSPECTIVES


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FarmWeek Letters1701 Towanda Ave.

Bloomington, Ill., 61701

Hard to believe, but sum-mer is over and we’ve celebrat-ed Labor Day. I have muchrespect for the hard-workingmen and women that labor inthe trenches.

I’m nottalking aboutbig corpora-tion managers,about WallStreet, aboutpolitical bigwigs, or uni-versity profes-sors. I want tohonor the car-penter, theplumber, the

factory worker, the farmergrowing the food, the ranchercaring for the cattle, the work-ers in the processing plants —I don’t think they get theappreciation they deserve.

We are all aware that jobsare scarce with unemploymentclose to 10 percent. However,Agriculture Secretary Tom Vil-sack’s recent review of the rur-al economic picture is encour-aging.

We probably all would agreethat 2009 was not a great year.Our input costs soared. Infact, the nitrogen fertilizer in2009 cost twice as much as itdid for this year’s crop.

Now we seem to have set-

tled into a comfort zone thatmay last for a couple of years.USDA reports farm income up24 percent. Farm asset valuesare up 2.5 percent.

The income improvement isacross the board — cattle,hogs, dairy, poultry, and eggs.Grain prices are strong, andwe have a pretty good crop.

We can thank drought inRussia and Ukraine for bettergrain prices. Also during myrecent trip to Germany, Ilearned the German farmerscouldn’t harvest their wheatbecause of too much rain. Irecently read they still are hav-ing trouble harvesting thecrop.

U.S. agriculture seems to beriding above the difficult eco-nomic times with which muchof the country is struggling.And Secretary Vilsack went onto say, “The outlook going for-ward into fiscal year 2011 iseven more promising.”

The end of summer meansthe start of fall. Be safe withharvest.

John Block of Gilson, a U.S. agri-culture secretary in the Reaganadministration, is a senior policyadviser with the Washington, D.C.,firm of Olsson, Frank, Weeda, andTerman. His e-mail address [email protected].

“Every vote counts” has become a cliché inmodern American politics. It is a separate ques-

tion to ask if every vote matters.The answer is that the

chances of our individual votemattering and whether ourefforts to educate and encour-age our friends and neighborsto cast a ballot will make a dif-ference depends upon the totalturnout and closeness of theelection.

The lower the turnout andthe closer the election, thegreater the chance that our indi-

vidual vote — and broader efforts in influenc-ing others — can affect the outcome.

It is a general axiom of elections in Americathat voter turnout in presidential election years,such as 2004, 2008, etc., is considerably higherthan in so-called midterm election years of2006, 2010, etc.

Illinois’ recent pattern is rather typical. Forexample in the2006 midtermelection, 3,487,989people voted forour state’s chiefexecutive. In 2008,5,522,371 Illi-noisans voted forour nation’s chiefexecutive — anincrease of morethan 2 million.

The turnout inprimary electionstends to be even lower in midterm electionswhen the presidential contests are absent.Under these circumstances, the probability thatour individual vote and efforts to persuade oth-ers to vote will affect the race increases.

In fact, the primaries for both parties’ nomi-nations for governor were extremely close inthis year’s primaries. On the Republican side,

Bill Brady’s margin over runner-up Kurt Dillardwas only 197 votes — out of three quarters ofa million votes cast.

In state legislative and local elections, thechances of our efforts affecting the outcomeincrease dramatically. In fact, my hometown ofBloomington has had more than its share ofextremely close contests.

Back in 1992, for example, Bill Brady wonhis first race for the Illinois Statehouse overincumbent Gordon Ropp by only eight votes.Probably most of us realize that we could makea serious effort going door-to-door on our ownblock and come up with at least eight additionalvotes for someone.

In 2000, our state Rep. Dan Brady won hisfirst term by only 45 votes (Dan is not relatedto Bill. In fact, Dan defeated Bill’s brother, Ed,who was the runner up).

And in the 2009 Bloomington mayoral elec-tion, I experienced a cliffhanger myself. I lostthe mayor’s race to incumbent Steve Stocktonby 15 votes, which was the closest margin in the

city’s history. It is, therefore,

reasonable to con-clude that ourdirect participationin the electoralprocess can make adifference.

The chances ofour participationtipping the balanceare the greatest inmidterm electionyears, primaries,

extremely close contests, and in local or statelegislative elections.

Tari Renner is a political science professor at IllinoisWesleyan University, Bloomington, and helps studentsconduct state and local public opinion polls. A three-term county board member, Renner also ran for Con-gress in 2004. His e-mail address is [email protected].

JOHN BLOCK

TARIRENNER

Editor’s note: This is the first in a series ofcolumns that will focus on Farm Bureau mem-

bers’ responsibilities in theupcoming elect ion. Thegoal is to encourage FarmBureau members to be-come active in the politicalprocess and elect candi-dates committed to serv-ing agricultural interests.

Voter turnout was critical in several close elections

Thanks, hard-working Americans

LETTER TO THE EDITOR‘Good life’ stillexists in rural areasEditor:

I enjoyed the letter fromWilliam Waters in the Aug. 30edition.

I recall during the 1970s,agricultural economists, advis-ers, bankers, schoolteachers,and, yes, even the Departmentof Agriculture from coast tocoast used one battle cry: “Getbig or get out!”

The governmental agendawas painfully clear. It is easierto manipulate a few largefarmers than it is to controlmany little ones.

I have noticed many smalloperations springing up duringmy travels in recent years.Frequently, you just can’t seethem from the hard road.

Of course, they have jobson the side, it is necessary.But they have a few chickens,pigs, cattle, etc. Gardens arestill out there. I stumble ontomy share of them.

Home canning and dehy-drating seem to be on theincrease. So what if they don’town a semi to haul grain toriver or rail? A 4020 cycling a350-bushel wagon to town isall they need to pay the realestate tax bill.

They raise their own foodand know exactly where itcame from and what went intoit. Excess food can always besold locally, market style.Sounds like the path to a goodlife to me.CHET PEUGH,Chadwick

FarmWeek September 13 2010

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