FarmWeek September 20 2010

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Monday, September 20, 2010 Two sections Volume 38, No. 38

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

FOUR NEW ILLINOIS broad-band projects announced last weekwill create about 500 jobs and bringthe total in federal broadband fundsto $240 million-plus. ...........................2

NATIONAL FARM SAFETYweek is upon us and serves as areminder to be particularly carefulduring an early harvest season thathas afforded very few breaks. .......9

A NEW ANALY SIS by aninternationally recognized engi-neering firm indicates virtually noproblems in older cars using anethanol blend of 15 percent. .........4

IFB steps up estate tax campaign

Farmers caught in debate over ‘wealth’ and taxesBY MARTIN ROSSFarmWeek

Pre-election debate over whatconstitutes “middle-class” taxrelief has farm families caught inthe middle as the return of thefederal estate tax looms.

If Congress does not act thisfall, the currently dormantestate tax will be revived Jan. 1at 2001’s $1 million exemptionand a high 55 percent tax rate,potentially capturing many Illi-nois families whose land valuesalone have increased signifi-cantly over the past decade.

In a statewide phone cam-paign, Illinois Farm Bureaumembers last week lobbiedDemocrat U.S. Sens. DickDurbin of Springfield andRoland Burris of Chicago tosupport a $5 million individ-ual/$10 million-per-coupleexemption in 2011.

Rep. Phil Hare, a Rock IslandDemocrat, told visiting IFBLeaders to Washington theestate tax is “just plain unfair,”and said he urged his colleaguesto “err on the high side” in set-ting a new exemption.

Rep. Jerry Costello, aBelleville Democrat who, likeHare, favors scrapping the tax,sees “support on both sides of

the aisle” for a higher threshold.“I don’t want a single farmer

ever having to worry that theycan pass their farm on to theirfamily,” Hare told FarmWeek.“I met a guy when I was backhome — he’s had a farm in hisfamily since 1860, and he hasevery right to pass that on.They’ve already been taxed once,and I think taxing people twiceis, quite frankly, un-American.

“Hopefully, we can get ridof (the estate tax). If not, wecould raise the ceiling so highthat no farmer will ever haveto worry about it.”

IFB’s call-in campaign com-menced amid increasinglytense tax relief debate. Presi-dent Obama has proposedlimiting general tax cuts tohouseholds earning less than$250,000 per year, and HouseSpeaker Nancy Pelosi (D-Calif.) last week supportedconsideration for extending

“middle-class” cuts whileallowing breaks for “wealthy”taxpayers to expire.

Estate tax relief has beencharacterized by some lawmak-ers as an attempt to placate the“rich.” But given current Illinoisland values, IFB Leader SteveKoeller warned a $1 millionexemption “just barely touches asmall amount of acreage.”

Koeller’s fellow MadisonCounty Leader Mike Campbellsaid the non-farming public failsto grasp that farm value is “notso much wealth as it is expense:the expense of ground, theexpense of machinery.”

“The only way you’re going tomake ‘wealth’ is to liquidate whatyou have,” he said. “Then youcan’t farm, because you don’thave anything to farm with.”

Hare sees a similar lack ofcongressional understanding of

See Taxes, page 4

With the country “so much in the red,” agspending under the next farm bill will be “allabout the budget baseline,” USDA’s top bud-get official told Illinois farmers last week.

USDA today (Monday) was to submitits first-round fiscal 2012 budget plan tothe administration Office of Managementand Budget. Deputy Secretary KathleenMerrigan, who oversees a current annual$149 billion budget, warned Illinois FarmBureau Leaders to Washington “we’re at apoint of belt-tightening.”

President Obama has directed USDAand other departments to trim 5 percent inexisting spending for fiscal 2012. That’s adaunting assignment: The majority ofUSDA program spending is mandatory,with only $26 billion in discretionary fundsostensibly available for the federal scalpel.

Of those funds, USDA salaries and admin-istrative costs consume $8 billion; $7 billion isdedicated to the popular Women, Infants, andChildren’s nutrition program, which, Merrigansaid, “everyone treats as mandatory”; androughly $7 billion goes to USDA’s FoodSafety Inspection Service. That’s “not alot of wiggle room,” she stressed.

Further, the president’s bipartisan

National Commission onFiscal Responsibility andReform (see above) isexpected in December tooutline prospective deficitreduction measures. Com-mission members have“signaled from the startthat agriculture is in theirsights,” Merrigan advised.

She admits the fate of2012 farm bill commodity and risk manage-ment spending is in question. Merriganacknowledged ag lawmakers thus are work-ing “expeditiously” to lock in farm spendingbaselines, but cited several unknowns onthe horizon, including November elections.

“In Washington, that’s all anyone’s talk-ing about,” she said. “How’s it going toimpact farm bill deliberations? Are wegoing to have a change in party leadership,all kinds of shake-ups?

“We had our harvest barbeque here(Wednesday). We invited agricultural mem-bers in Congress, and that’s all we were talk-ing about: Who’s vulnerable, what’s happen-ing. We had the same conversations withRepublicans and Democrats.”

She noted Congress continually is “losingpeople in agriculture.” Senate Ag Commit-tee Chairman Blanche Lincoln (D-Ark.) isfighting for re-election, and Merrigan sees“an increasingly urban Congress” with newcongressional redistricting coming.

USDA thus is ramping up its public“conversation” about the importance offarming: Merrigan leads USDA’s “KnowYour Farm, Know Your Food” campaignaimed at linking producers and consumers.She stressed the need to “ride this newwave of public interest in agriculture” andcorrect misconceptions, particularly thoseinvolving larger-scale production.

Efforts on behalf of “local” and special-ty growers have raised questions aboutUSDA support for grain and larger livestockoperations. USDA hopes to move fresh pro-duce into schools and build slaughter capac-ity for small producers, but overall, itsefforts are not “size-specific,” Merrigan said.

“I think of the Chicago school foodsystem — these big institutions can’t dealwith the small guys,” she said. “They’regoing to be looking for a larger-sizedfarmer to supply their local food inter-ests.” — Martin Ross

USDA ‘not just about small farmers’

Deputy secretary: Ag in budgetary ‘sights’

KathleenMerrigan

BIODIESEL CREDIT AGAIN DENIED —Hopes for a revival of the U.S. biodiesel industryagain faded last week as the Senate voted 41-58against a motion to suspend legislative rules andaccept an amendment that would retroactively haveextended the federal biodiesel blenders tax credit.

Senate Majority Leader Harry Reid (D-Nev.) hadsigned off on the suspension, but the motion to sus-pend required 67 votes to pass. The biodiesel indus-try has languished since Jan. 1 when the $1-per-gal-lon credit expired, even though, as American Soy-bean Association (ASA) President Rob Joslin notes,biodiesel has provided “a significant market oppor-tunity for U.S. soybean farmers, as well as jobs andeconomic development for rural communities.”

“ASA is severely disappointed in the failure of theSenate to extend the biodiesel tax credit,” Joslinsaid. “At a time when jobs and renewable energyproduction are cited as top priorities, it is unaccept-able that Congress would fail to extend the biodieseltax credit.”

CORN REFINERS WANT ‘CORN SUGAR’— The Corn Refiners Association last week peti-tioned the U.S. Food and Drug administration toallow food and beverage manufacturers the optionof using “corn sugar” as an alternate name for highfructose corn syrup (HFCS) on product labels.

The association said it is asking for the changebecause research has shown consumers mistakenlyassume that HFCS is high in fructose when com-pared to other sweeteners.

“The majority of consumers polled do not knowthat high fructose corn syrup and table sugar haveessentially the same composition: half fructose andhalf glucose. Forty percent believe that high fruc-tose corn syrup has more calories than table sugar,”the refiners said.

ADM DONATES TO AG ED — ArcherDaniels Midland (ADM) Co. last week made severaldonations for agricultural education and ag literacyefforts in Central Illinois.

The donations included $20,000 to the IAAFoundation for Illinois Agriculture in the Class-room; $50,000 to the Abraham Lincoln PresidentialLibrary and Museum for agricultural exhibits andeducation; $30,000 to Illinois 4-H for scholarshipsand agriculture education; and $10,000 to the Chil-dren’s Museum of Illinois in Decatur, for agricultur-al education.

FarmWeek Page 2 Monday, September 20, 2010

(ISSN0197-6680)

Vol. 38 No. 38 Sept. 20, 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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STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

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Quick TakesSTATE

State to receive $73 million for broadbandFour more Illinois broadband projects were

awarded $73 million in federal funding to buildand improve infrastructure and broadbandaccess across Illinois, Gov. Pat Quinnannounced last week.

Project funding will include more than $16million from the Illinois Jobs Now! capital pro-gram, which helped secure the federal funds.

“Illinois has received over $240 million infederal broadband funding,” Quinn reported.

The four projects are expected to createabout 500 direct jobs.

Illinois Rural Development Director ColleenCallahan announced two of the Illinois broad-band projects will receive funding throughUSDA.

“Broadband, much likeeducation, is the greatequalizer,” said Calla-han. “Until we completethe initiative to bring high-speed Internet to our ruralcommunities, rural Illinoiswill continue to be at adisadvantage in receivingquality health care,improved educationalopportunities, and potential business advan-tages.”

Norlight Inc. will receive $11 million,matched by $450,000 in state funds and$350,000 in private funds, to provide a wirelessnetwork to 13 Central Illinois counties thateither lack or have little broadband access.

Included are all or parts of Bond, Calhoun,Cass, Christian, Fayette, Green, Jersey,Macoupin, Montgomery, Morgan, Pike, Scott,and Shelby counties.

Convergence Technologies Inc., based inBurr Ridge, will receive $9.1 million in federalfunds matched with $700,000 in state funds tooffer wireless broadband and digital phone ser-

vice in rural areas of Cook, Kankakee and Willcounties in Illinois and the Indiana counties ofLake, Newton, and Porter.

Two projects received funding from the U.S.Department of Commerce.

Northern Illinois University, on behalf ofthe Illinois Broadband Opportunity Partner-ship, will receive $46.1 million in federal dollarsmatched with $14 million in state funds and$8.5 million in private funds to build an 870-mile fiber-optic network across nine counties.

This project will interconnect with theDeKalb County broadband project, whichreceived stimulus funding in February.

MyWay Village will receive $4.7 million infederal funding matched with $1.2 million in

state funding and $890,000 in private funding toteach thousands of senior citizens and peoplewith disabilities e-mail basics and other practicalcomputer skills in 23 public and affordablehousing communities in Northern Illinois.

To date, 17 Illinois projects have been select-ed for federal broadband funding.

Last week, the American Farm Bureau Feder-ation (AFBF) urged Congress to pass HR 5828,the Universal Service Reform Act of 2010.

The bill would declare broadband Internet auniversal service and allow for direct supportfrom the Universal Service Fund (USF). AFBFPresident Bob Stallman said the USF should beused for long-term broadband deployment.

Clinton County man charged with grain code fraud

Sangamon County porkproducer appeals ruling

A Sangamon County pork producer recently appealed a rul-ing by a Circuit Court judge that awarded the farmer only $500for damages stemming from legal action by a resident group.

Robert Young of Rochester had sought more than $257,000in damages from the Rochester-Buckhart Action Group thattried to stop construction of his hog operation.

On Sept. 7, Sangamon County Circuit Court Judge LeslieGraves awarded Young $500 and ruled against his other claims.

In February, the Illinois Supreme Court denied the residentgroup’s request to appeal a Fourth District Appellate Courtdecision that Young had the right to recover damages for theconstruction delay.

In 2006, the resident group obtained a preliminary injunc-tion that temporarily stopped construction. That was decisionlater was reversed. Young has a 3,600-head operation.

A Clinton County manwhose company operated fourelevators in Clinton and Mari-on counties recently wascharged with fraud of $4 mil-lion, stemming from viola-tions of the Illinois GrainCode, according to IllinoisAttorney General Lisa Madi-gan.

John Kniepmann, 46,Breese, was charged with 12counts of violating the graincode and one count of bur-glary.

Kniepmann is the ownerand president of GrainExchange LLC and Consoli-dated Exchange Inc. thatoperated elevators in Carlyle,Bartelso, Germantown, andSandoval.

Clinton County CircuitCourt Judge Dennis Midden-dorff issued a warrant forKniepmann’s arrest. Bond wasset at $50,000.

The attorney generalcharged Kniepmann allegedlysubmitted inaccurate, mislead-ing, and false reports to theIllinois Department of Agri-culture (IDOA) regardingnotes valued at more than $4million and payable to theFirst State Bank of Eldoradoin 2007 and 2008.

He also is accused of with-holding records indicating analleged shipment in March2007 of about 10,000 bushelsof wheat by using the name ofhis stepdaughter and anothershipment of 5,000 bushels inAugust 2007.

The Grain Exchangeclosed in February 2008.IDOA liquidated its grainassets of nearly $1.2 millionand used an additional$900,000 from the stategrain insurance fund tocompensate farmers who

were owed money.“These charges resulted

from an in-depth, coordinatedinvestigation between theattorney general’s office andthe (IDOA) and demonstrateour commitment to prosecutethose who abuse the trust ofIllinois grain producers,”IDOA Director Tom Jenningssaid.

Violations of the IllinoisGrain Code are felonies pun-ishable by three to seven yearsin prison. Burglary also is afelony.

‘Broadband, much like educa-tion, is the great equalizer.’

— Colleen CallahanIllinois Rural Development director

ENVIRONMENT


NUTRIENT SUMMIT

State focusing on nitrogen, phosphorous levels in water BY KAY SHIPMANFarmWeek

Illinois is working toaddress the amount of nitro-gen and phosphorous in itslakes, rivers, and streams, buthasn’t reached a consensuson what the target levelsshould be or how to achievethem.

During a day-and-a-halfnutrient summit last week,representatives of state gov-ernment, the scientific com-munity, and agriculture, aswell as environmentalists,and those who deal withpublic water supplies andwastewater treatment grap-pled with myriad issues.

“This isn’t a debate; it’s achance to let everyone airtheir perspectives,” IllinoisEnvironmental ProtectionAgency (IEPA) DirectorDoug Scott said in video-taped remarks at the Univer-sity of Illinois, Springfield.

IEPA started working onstate-specific water standardsin 2003.

The Illinois Council onFood and AgriculturalResearch (C-FAR) spent $1.5million on research to helpdevelop the new standards.In the process, scientistslearned water quality is com-plex and could not find aone-size-fits-all state stan-dard for phosphorous, forexample.

Water quality is a major

concernand signifi-cant issuefor the U.S.Environ-mental Pro-tectionAgency(USEPA),accordingto EphraimKing, director of USEPA’soffice of science and tech-nology.

“The jury is in on whetherexcess nitrogen and phos-phorous contribute to the

impact on waterquality. Nitrogenand phosphorousrepresent a signif-icant national pri-ority and risk,”King said.

King’s laundrylist of “nutrientpollution” sourcesincluded urban

stormwater, which he called asignificant source; municipalwastewater treatment plants;

livestock production; andagricultural row-crop pro-duction.

King then focused on“tools not being deployed aseffectively” as possible.Those included pollutantquotas known as total maxi-mum daily loads (TMDLs)and numeric nutrient waterstandards.

A key USEPA priority is“nutrient accountabilityacross watersheds” for pointsources and nonpointsources, he said.

“The states have authorityand influence that go beyondthe (federal) Clean WaterAct,” King added.

Earlier in the program,Illinois Agriculture DirectorTom Jennings noted: “Wemust recognize there will becosts associated with anymanagement changes. Wemust balance the costs withresulting benefits and with-out placing undue burdens(on various sectors).”

IEPA is planning a secondmeeting in mid-October withthe goal of identifying short-and long-term actions thatcan be taken, said MarciaWilhite, chief of IEPA’swater pollution controlbureau.

“This (issue) isn’t some-thing that can be solved withone conversation. We needadditional discussion,” Wil-hite said.

Illinois farmers have saved soil, plantedtrees and grass buffer strips, and used fertilizermore efficiently.

Those actions, along with others, havereduced the amount of nitrogen and phospho-rous moving from agricultural land into lakes,rivers, and streams, ag experts said at a statenutrient summit last week.

But farmers can’t control the weather, andweather is a major factor in nutrient runoff, theexperts noted.

“Nitrogen losses (from fields) are very muchrainfall related and weather driven,” said BobHoeft, University of Illinois interim associatedean and director of Extension and a soil fer-tility specialist.

Nick Paulson, a U of I agricultural econo-mist, told the gathering that farmers have alimited number of good days available to workin the field, especially in Illinois.

“Farmers face a lot of uncertainty (about)when they can put on fertilizer, what type toapply, and how much,” Paulson added.

The amount of nitrogen applied per acrehas remained steady, while amount of nitrogenper bushel harvested has decreased, Paulson

noted. “We’ve (farmers) become more efficientat using nitrogen over time,” he added.

Likewise, the amount of phosphorousapplied per bushel harvested also has declined,and Paulson projected that trend would contin-ue.

Improved technology is helping farmersbetter manage fertilizer applications and usethose nutrients more efficiently, said HowardBrown, manager of agronomy services forGROWMARK Inc.

Brown cautioned against limiting farmingpractices, such as fall fertilizer applications,because farmers need to be able to adapt toweather conditions. He illustrated by noting anexcellent growing season in 1987 was followedby a drought in 1988.

“When you look at nitrogen (applications)as a system, we have to be agile and react toconditions and the environment,” Brown said.

Brown promoted more on-farm nitrogen-rate studies that help farmers better understandtheir soils and fertility needs.

“Farmers care about reducing nutrient loss.I believe this coming from a farm family,” Paul-son summarized. — Kay Shipman

Ag experts outline nutrient advancements, issues

Nitrogen and phosphorous levelsin Illinois water bodies cause prob-lems, and current practices eitheraren’t reducing those levels or notreducing them fast enough, accordingto several environmentalists whospoke at a state nutrient summit lastweek.

Establishing state numeric stan-dards for nitrogen and phosphorouslevels in bodies of water is a priorityfor the environmental groups.

Currently, Illinois only has anumeric phosphorous standard for

some lakes, although the IllinoisEnvironmental Protection Agency(IEPA) has worked on state standardssince 2003.

Cindy Skrukrud with the SierraClub and Albert Ettinger with theEnvironmental Law and Policy Cen-ter noted that environmentalgroups recommended their ownphosphorous standards to IEPA in2008, but the agency didn’t adoptthem.

Ettinger pointed to work done inother states — especially in Wis-

consin — to set numeric nutrientstandards for water bodies. He evensuggested Illinois environmentalgroups may approach the IllinoisPollution Control Board with Wis-consin water quality data to haveIllinois water standards written.

Craig Cox with the Environmen-tal Working Group (EWG) said hisorganization plans to recommendgovernment policy changes.

“Business as usual will notwork,” Cox said.

Cox promoted precision conser-

vation that would focus conserva-tion practices on areas which arecontributing the most nutrients tostreams, etc., within a watershed.

He said the government shouldenforce conservation compliance,possibly for water quality, in orderfor landowners to qualify for farmprogram benefits.

EWG also is interested in “preci-sion regulations” at the state levelwith the goal being to “push thosefarmers causing the most damage,”Cox explained. — Kay Shipman

Environmentalists say nutrient levels must be reduced

The Illinois Environmen-tal Protection Agency

(IEPA) atpresstimeFriday con-tinued aninvestigationinto possiblecauses of afish kill inLone TreeCreek and theSangamon

River in McLean County,

Bruce Yurdin with IEPA’swater bureau toldFarmWeek.

“We’re looking at morethan one potential source,”Yurdin said.

He did not have an esti-mate of when IEPA mightdetermine either a cause orthe sources.

IEPA received a reportabout the fish kill on Sept. 6,Yurdin said, adding the inci-dent may have happened 48

or more hours earlier.A “concerned citizen”

reported seeing “brown-stained water” to the IllinoisDepartment of NaturalResources (IDNR) on Sept.6, and IDNR investigatedthe report, said JanuariSmith, IDNR spokesman.

IDNR estimated about40,000 fish were killed alongan 11.52-mile stretch of thecreek and river, Smith said.Fish species killed included

large- and small-mouth bass,sunfish, channel catfish,carp, and minnows. Otheraquatic life, such as crayfish,frogs, and mussels, also werekilled.

IEPA has isolated thewater source to a drainagetile that empties into LoneTree Creek, Yurdin said.

The area is agricultural,but a road and a pipelinealso run through the area, hesaid.

IEPA has eliminated somepotential sources, but Yurdindeclined to name them.

The incident has generat-ed a lot of interest from thepublic and the media, Yurdinsaid.

“Once we (IEPA) havefigured it out, we will goback and let the public andthe press know, ‘Here’s whatwe think happened and whois responsible,’” Yurdin said.— Kay Shipman

Bruce Yurdin

IEPA investigates sources of Central Illinois fish kill

‘Nitrogen and phosphorous representa significant national priority and risk.’

— Ephraim KingU.S. Environmental Protection Agency

director of science and technology

GOVERNMENT


Continued from page 1the true costs of farming. He recalled polling a group of inner-city House members on the price of a new farm tractor. Theurban lawmakers guessed no higher than $25,000, he said.

Durbin agreed a return to pre-2002 estate tax levels is “unten-able,” calling a $1 million exemption “crazy.” However, he sup-ports restoring the $3.5 million individual/$7 million-per-coupleexemption in place when the estate tax “expired” last Dec. 31.He said he feared a $5 million (individual) exemption wouldresult long-term in “a dramatic loss of revenues.”

As a member of the president’s bipartisan National Commis-sion on Fiscal Responsibility and Reform, Durbin maintainedthere are only two ways to reduce a nearly $13 trillion federaldeficit — “cut spending or raise taxes.”

He argued Senate Minority Leader Mitch McConnell’s (R-Ky.)proposal to permanently extend Bush-era tax cuts would costthe Treasury nearly $4 trillion over a 10-year period.

“The notion that we could eliminate the estate tax and ignorethe deficit consequences is as crazy as saying we could eliminatethe income tax,” Durbin told the FB leaders.

Taxes

Pecking at OPEC: Ethanol efforts acceleratedBY MARTIN ROSSFarmWeek

The U.S. House Ag Commit-tee chambers last week servedas the backdrop for an unusualevent: ethanol industry obser-vance of the Organization ofPetroleum Exporting Countries(OPEC) 50th anniversary.

Jeff Broin, CEO of topethanol company and prospec-tive cellulosic biofuels produc-er Poet Inc., argued “the next50 years don’t have to be thelike the last 50.” With anexpanded national commit-ment, “we can replace OPECoil with American ethanol in12 years,” Broin speculated.

During a Washington newsconference, the ethanol groupGrowth Energy said it antici-pated the U.S. EnvironmentalProtection Agency (EPA)would approve its request toallow use of E15 — 15 per-cent ethanol gasoline — inconventional vehicles.

Illinois Farm Bureau Lead-

ers to Washington, meanwhile,lobbied bipartisan lawmakersto support extension of theethanol blenders tax credit,which expires Dec. 31.

Growth Energy supports

credit extension as well as newfederal incentives for installa-tion of retail “blender pumps”that offer consumers a rangeof ethanol fuels.

“Had we invested 50 yearsago in the infrastructure andfuels necessary to make thiscountry less dependent on for-eign oil, we wouldn’t be in theeconomic shape we’re intoday,” Growth Energy CEOTom Buis told FarmWeek.“We’re spending $300 billion(annually) ... overseas for ouraddiction to foreign oil. We

know we can do better.”EPA Administrator Lisa Jack-

son earlier assured Growth Ener-gy leaders “everything is still ontrack” toward a fall E15 decision,Buis said. Department of Energy(DOE) testing of E15 in 2007and newer models should becomplete this month, with testson 2001 and later models expect-ed in November, she said.

Jackson “spoke very posi-tively about the role for cornethanol,” Buis said. But EPAstands by its proposal for two-tiered E15 approval for olderand newer vehicles despiteGrowth Energy’s push to clearuse in “all vehicles and all gaso-line engines” (DOE reportedlyis struggling to find older carswith low mileage that canundergo extensive E15 tests).

“There’s no reason we can’traise that mixture immediately,”Rock Island Democrat Rep.Phil Hare told IFB leaders.

Meanwhile, Sen. DickDurbin, a Springfield Democ-

Study supports E15use in older vehicles

According to a new analysis by internationally recognizedengineering firm Ricardo Inc., moving from a 10 percentethanol blend to 15 percent (E15) will mean little, if any,change on the performance of older cars and light trucks man-ufactured between 1994 and 2000.

The study, which analyzed vehicles from six companies andrepresenting 25 percent of light-duty vehicles on the roadtoday, concluded “the adoption and use of E15 in the motorvehicle fleet from the studied model years should not adverselyaffect these vehicles or cause them to perform in a sub-optimalmanner,” compared with performance using E10.

“This analysis provides conclusive evidence for the Environ-mental Protection Agency that there is no reason to limit theavailability of E15 to newer vehicles only,” national RenewableFuels Association (RFA) President Bob Dinneen maintained.

The study reviewed the effects of E15 use on “vintage”vehicle drivability, catalytic converter durability, and on-boarddiagnostic systems. It found minimal effects on engine compo-nents and materials, emission systems, or performance.

Slight mileage reductions have been associated with E10 or“flex-fuel” E85 use relative to pure gasoline. But Jeff Broin,CEO of Iowa-based ethanol producer Poet, noted “fantasticmileage” with mid-level ethanol blends, often similar to fuelcontaining no ethanol.

Meanwhile, higher ethanol blends “fit perfectly into theengines we’re starting to design,” he argued. Automotive tech-nology provider Bosch has been awarded federal funding toimprove efficiency in light-duty engines and is working withRicardo to develop an optimized flex-fuel vehicle offering fueleconomy closer to that provided by straight gasoline.

Broin noted increasingly smaller, more turbo-chargedengines can benefit from ethanol’s higher octane content.

“It allows actually very good mileage in these engines,” hetold FarmWeek. “Although there are slightly less BTUs (ener-gy units) in ethanol, because it’s higher-octane, the computer inthe car advances a spark, and you get back that efficiency youlose with the BTUs.” — Martin Ross

rat, was confident Congresswould approve tax extenderslegislation that includes con-tinuation of the 45-cent-per-gallon ethanol tax credit.

Rep. Jerry Costello, aBelleville Democrat, saidextenders legislation “has to bedone,” and anticipated a billcould reach the House floorwithin the next two weeks.

While the ethanol credit hasdrawn fire from some urbanand oil state lawmakers, Hareis seeing a “flip” in legislative

attitudes amid fallout from therecent Gulf oil spill.

Rep. Bill Foster, a BataviaDemocrat who met with IFBleaders, supports “the wholerange of ethanol policies,”from extension of the ethanolcredit to federal loan guaran-tees and incentives for biofuelspipelines.

Foster stressed to Farm-Week the importance ofassuring that as the tax crediteventually is phased out, “thatdoesn’t crash the industry.”

Lawmakers: Compromise crucialto approval of U.S.-Korea FTA

A Western Illinois congressman with dual agand labor constituencies suggests he could sup-port a U.S.-South Korea free trade agreement(FTA) with the proper “fix,” but stressed “Iwant the deal to be fair on both sides.”

Rock Island Democrat Rep. Phil Hare lastweek told Illinois Farm Bureau Leaders toWashington he was not opposed to expandedtrade despite his continued reservations aboutexisting bilateral trade agreements.

FTAs with Korea, Panama, and Colombiaare still awaiting congressional action — Presi-dent Obama said last week he would seek ratifi-cation of the Korea deal as soon as possibleafter resolving outstanding issues.

Noting the economic importance of U.S.exports, Hare argued Korea must be moreaccommodating on allowing entry of U.S. beefand automobiles.

U.S. Sen. Dick Durbin, a Springfield Democ-rat who also met with the IFB leaders, argued“the ag part is the easy part,” while SouthKorea’s purported reluctance to allow more U.S.vehicles in is the tougher nut to crack.

Part of the concern about reaching a solu-tion, according to Hare, is that he and othershave received “mixed signals” from the U.S.

trade representative regarding ongoing U.S.-Korean negotiations.

Hare said he does not expect the FTA toyield a “car for car” exchange between the U.S.and Korea, but he argued Korea must liftimport tariffs to at least level the playing field.

“They get that done, and I’ll vote for thatdeal,” he said. “There are a lot of members whoare going to vote for this deal if (administrationofficials) get it fixed. If we put tariffs up, andwe didn’t allow Korea to ship into this country,that would be my definition of protectionism.

“I don’t support blocking people from bring-ing products over here. That’s perfectly fine.Colombia’s a classic case: Colombia’s going totake a lot more of our exports than we’re evergoing to import from Colombia. There’s noquestion.”

Hare told Illinois producers he wants Ameri-can agriculture and American manufacturing tobe “on the front end” of future bilateral negoti-ations.

Further, he argued the president “has not yetreally articulated his stance on trade” — a moveHare believes is crucial to breaking a partisan“logjam” that has delayed FTA approval. —Martin Ross

U.S. Rep. Jerr y Cos te l lo , aBelleville Democrat, discussestax, biofuels, and other issueswith Illinois Farm Bureau Lead-ers to Washington, from left,Tim Orlet of Mascoutah, SteveKoeller of Godfrey, and MikeCampbell of Edwardsville. Atfar right is Costello aide Melis-sa Connol ly. (Photo by KenKashian)

FarmWeekNow.comWe have audio comments fromTom Buis on the upcoming E15decision at FarmWeekNow.com.

FARM PROGRAMS


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CRP general sign-upnets 4.3 million acresBY DANIEL GRANTFarmWeek

USDA as of last week had accepted a total of 4.3 millionacres offered by landowners under the Conservation ReserveProgram (CRP) general sign-up.

The most recent opportunity to enroll ground in CRP —Aug. 2 through 27 — was the first general sign-up for the pro-gram since spring 2006.

“Interest in this open enrollment was high,” said TomVilsack, ag secretary. “I’m pleased that producers and

landowners across thenation continue to real-ize the environmentalbenefits of enrollingland in the CRP.”

USDA received morethan 50,000 offers thattotaled more than 4.8million acres.

However, there is a 32-million-acre statutory capon CRP, so currentenrollment, which totals31.2 million acres, leavesroom to continue enroll-ment in the ConservationReserve Enhancement

Program, continuous CRP sign-up, and other CRP initiativesthrough fiscal year 2011.

Farmers and ranchers with acreage enrolled in CRP plantgrasses and trees in crop fields and along streams or rivers toreduce soil erosion and keep nutrients from washing intowaterways.

The average annual rental rate for the recent CRP sign-upwas about $46 per acre.

USDA selected offers for CRP enrollment based on anEnvironmental Benefits Index that consists of wildlifeenhancement, water quality, soil erosion, enduring benefits,and air quality.

Emergency loans available for some farmers

‘ I ’m p leased tha tp r o d u c e r s a n dlandowners contin-u e t o r e a l i ze t h eenvironmental ben-e f i t s o f en ro l l i ngland in CRP.’

— Tom VilsackAg Secretary

USDA Farm ServiceAgency (FSA) State ExecutiveDirector Scherrie Giamancoannounced last week thatfarmers in 55 Illinois countiesare eligible to apply for low-interest emergency loans dueto physical and productionlosses caused by excessive rainand flooding that occurredsince April 1.

In addition, with a qualify-ing loss, this designationmakes producers eligible forthe Supplemental Revenue

Assistance Payments (SURE)program.

Emergency loan applica-tions are available and must besubmitted through the localFSA county office from anyapplicant who qualifies for aphysical or production loss (atleast a 30 percent reductionfrom normal) in a single enter-prise from this disaster inthese counties.

To qualify for a loan, anapplicant must be an estab-lished family farm operator;

provide evidence of havingsuffered a qualifying physicalor production loss; and beunable to obtain suitable creditfrom a source other than FSA.

The low-interest loans maycover up to 100 percent oftheir actual production orphysical losses, to a maximumamount of $500,000.

The loan applicants mustshow ability to repay the loanand the loan must be ade-quately secured.

FSA loans for productionlosses may be used to buyfeed, seed, fertilizer, livestock,or to refinance certain debts.

FSA loans for physical loss-es may be used to repair orreplace the property that wasdamaged or lost.

The current interest rate forthe loans is 3.75 percent. Thedeadline for submitting appli-cations is May 9, 2011.

In addition to the Emer-gency Loan Program, FSA hasother Direct and GuaranteedFarm Operating and FarmOwnership Loan programs,which can be considered inassisting farmers to recoverfrom their losses.

Additional informationabout FSA farm loan pro-grams is available at{www.fsa.usda.gov/dafl}.

In addition to farmers inthe 55 designated disastercounties, those in 37 contigu-ous counties also may be eligi-ble for assistance.

Disaster counties shown in red

Bernie Walsh, Durand, Winnebago County: We had halfan inch of rain on Thursdaymorning, and that was the firsttime in more than a month thatwe had more than a tenth of aninch at any one time. That shouldsettle the dust and knock somemore leaves off the bean plants.We heard of some beans being

combined five miles north of us last weekthat were close to 60 bushels per acre and12 percent moisture. We started combiningour beans Friday. More on that next week.The corn is losing moisture very fast, butmost of it is still in the low- to mid-20s,according to neighbors who have started toharvest their corn. Have a safe week.

Pete Tekampe, Grayslake, Lake County: Got a half inch ofrain on Thursday. Corn andbeans are maturing rather earlythis year. Heard some beanswere cut on the north end of thecounty Wednesday with moistureat 12 percent. Mine are still aweek to 10 days off. Beans in thehollows are still a little yellow andholding their leaves. Not much

green left on most of the corn, but none hasbeen picked in the county yet. They are call-ing for more moisture. I hope they are wrong.

Leroy Getz, Savanna, Carroll County: Another week withno measurable rain. On Sept.12, a small storm movedthrough Jo Daviess County andparts of northern Carroll Countywith 80 mph winds but very littlerain. Stalk quality is poor insome corn, and it is going down.Combines are running and try-

ing to salvage what they can. Moisture levelsare in the 20s to high teens. The yields seemto be respectable in the 180s up to 230bushels per acre. No soybeans have beenharvested yet. The dry weather has beengood for some fourth cutting of hay.

Ron Frieders, Waterman, DeKalb County: The 2010 har-vest is off and running. Early vari-eties of soybeans have beenyielding average to good, exceptin areas of disease where yieldsplummet. Lots of farmers areopening up corn fields or combin-ing full swings. Moisture levelsseem very dry for this time of year.

Some even in the teens. Yield reports havebeen extremely variable. Stay safe this fall.

Ken Reinhardt, Seaton, Mercer County: We missed sever-al chances of rain last week. Cornyields are variable, but corn-on-corn is much closer to 100bushels per acre (bpa) than 200.Lots of reports of 100 to 120 bpafield averages. Bean yields so farare more normal, 40 to 60 in thefew early ones that have been cut.

Ron Moore, Roseville, Warren County: We missed anyrain last week. Corn harvest isprogressing nicely. We have doneabout 20 percent. The moisturehas been as low as 16 percenton some varieties. Yields havebeen somewhat disappointingand are below the five-year aver-age. There are some excellent

yields, but the areas that had water standingfor a long time in May and June are pullingthe average down. I have not seen any soy-beans harvested yet in this area. We shouldstart in 10 days or so.

Ron Haase, Gilman, Iroquois County: Harvest continues ata moderate pace. The drier corn-fields and mature soybean fieldsare being harvested, but thereare a lot of acres that still need todry down and mature beforebeing harvested. I have heardcorn yield reports ranging from60 to 200 bushels per acre. On

the corn being harvested, I have heard themoisture ranging from 12 to 21 percent.Overall, the yields are quite a bit lower than in2009. The reports I have heard so far on soy-bean yields are that they are disappointingand lower than in 2009. We harvested cornthis past week and have 12 percent harvest-ed. But we are waiting on the other acres todry down more before we take out theremaining fields. Local closing prices forSept. 16 were $4.54 for nearby corn, $4.79for January corn, $10.07 for nearby soy-beans, and $10.31 for January soybeans.

Jacob Streitmatter, Princeville, Peoria County: As timegoes on, there is more and morecorn being mowed off. A few soy-bean fields have been harvested.The yields on corn are all overthe board. Some good-lookingcorn is not yielding so hot, andsome short, crappy-looking cornalso not yielding so hot. There

are, of course, the tops of hills pushingbumper yields once again.

Mark Kerber, Chatsworth, Livingston County: As I writethis report from the auger cart,the crop is being harvested at arapid rate. In general, corn yieldsare lower than expected andsoybeans are better thanexpected. The disk-sharpeningman has made his rounds, keep-ing fall tillage tools sharp. While

working late in the evening in the combinecab, have you ever found old donuts or cook-ies you had forgotten about?. It is like findinga treasure. Markets are still on the rise. Willthey keep going or fall back like last year?Good prices for grain off the combine.

Brian Schaumburg, Chenoa, McLean County: Finishingcorn harvest on Sept. 17 cannotbe a good thing, but it is amaz-ing what you can accomplishwith quality help and equipment.Our best and worst corn wascontinuous corn all within onemile of each other. Go figure.Soybean yields are in the mid

50s to mid 70s. Very low moisture on bothcrops. Corn, $4.58, January corn, $4.73, fall2011 corn, $4.22; beans, $9.99, Januarybeans, $10.09, fall 2011 beans, $9.77;wheat, $6.32.

Steve Ayers, Champaign, Champaign County: The areacorn harvest, according toPremier Co-op, is 60 percentdone with average moisture at15.5 percent and beans are 27percent done with 9 to 11 per-cent moisture. Corn yields rangefrom 80 to 210 bushels per acre(bpa) and most beans are in the

60-bushel range with some as low as 40. Westarted corn Sept. 13 and our first 140 acreswent 180 bpa at 15 percent. Our beans arenot ready yet, so we will continue corn untillate next week. Wednesday night we wereexpecting a half to an inch of rain butreceived a whopping .06 of an inch, so com-bines continued rolling Thursday. Let’s becareful out there!

Wilfred Dittmer, Quincy, Adams County: A nice fall morn-ing here Friday with a tempera-ture reading of 50 degrees andseveral combines rolling in thearea cornfields. What a differ-ence a week makes in the looksof the fields. What yields I haveheard of are all the way up thescale from low to fairly good with

good-sized ears and small ones. Early soy-beans turned rather fast this last week andlater ones are still basically pretty green. Nosoybeans have been harvested yet nearby.Rainfall since last report here was 1.5 inchesof rain on Sept. 10. Have a safe week!

David Schaal, St. Peter, Fayette County: Corn harvest hasprogressed rapidly. Some farm-ers are complete with their corn;others were hoping to finish bythe weekend. Moisture on thecorn has really come down fromthe previous week. Some areshelling corn at 14.5 to 15.5 per-cent. A lot different than last year

when we were picking five weeks later. Someproducers are beginning to harvest soybeansand I’m hearing yields are pretty decent.Everyone stay safe, and happy harvesting.

Dan Meinhart, Montrose, Jasper County: It was a verypleasant fall week. Rain was inthe area Sept. 10, leaving a littlemore than 2 inches, which wasbeneficial to the late-plantedcorn and the beans. Harvestingof the April-planted corn is in fullswing with moisture running inthe teens. The May- and June-

planted corn is still carrying excessive mois-ture. The early-planted beans are turningyellow. Soybean harvest is a couple weeksoff. Another pleasant fall week is expectedwith no rain in the forecast.

Bob Biehl, Belleville, St. Clair County: Last weekend(Sept. 11-12), we received about2 inches of rainfall, but by Sept.13 corn harvest continued.Everyone is really pleased withthe moisture levels. They rangefrom 14 to 17 percent. Thepropane people are going tostruggle for business this year.

Yields vary substantially in the county. I’veheard corn down to 80 to 90 bushels per acrein areas that couldn’t buy rain all the way upto 200-plus bushels. Most of the corn in ourarea has been between 165 and 190 bushelsper acre. I have seen only one bean field inthe area harvested. Looks like it will be theend of the week before any of our beans willbe ready to cut.

Carrie Winkelmann, Menard County: Corn harvest in ourarea got under way Sept. 7. Wehave been in the field every daysince, except for the weekend ofSept. 11 and 12 because of 1 inchof rain received Sept. 10. Cornyields are lower than expectedwith moisture running between14.5 and 16 percent. We have a

slight diplodia problem, with an average of 4percent damage. Nitrogen loss looks to be themain cause of poor yields from side-by-sidetesting of fall-applied vs. spring-applied nitro-gen. Our early Group 4 beans look to make itto harvest and beat the frost. Bean harvest isunder way in the area, but I haven’t heard anynews on yields or quality. Mini pumpkin har-vest is under way on our farm. Insect pressureand wet conditions have caused quali-ty problems in the pumpkin patch.

Tom Ritter, Blue Mound, Macon County: Corn is disap-pearing at a very rapid rate.Probably more than 70 percenthas been harvested at this point.Yields have been all over theboard with corn after beans andcorn on rolling ground yieldingfar better than low-lying areas orcorn following corn. Soybean

harvest is just barely getting started — defi-nitely less than 10 percent of the beans havebeen harvested at this point. Many farmerswill be making the switch to beans the first ofthis week or as they complete their corn har-vest. I have heard no reports on bean yields,but early indications seem to put them at veryexcellent in yield.

Todd Easton, Charleston, Coles County: Harvest contin-ues at a rapid pace with almostno slowdown from the two weath-er events last week. Standingcornfields are getting harder tofind, and in another week theywill be very scarce. Soybeanfields also are disappearing at asteady pace with most yields run-

ning in the 50- to 60-bushel range so far. I amkeeping my fingers crossed that the laterbeans will be able to hold these levels.

Rick Corners, Centralia, Jefferson County: Corn harvestclicks right along with no weath-er delays. Most probably will fin-ish soon. A few April beans havebeen cut. Most of the later-plant-ed Group 3 beans will be readyin a week or 10 days. The waterhemp plants are still not ripe.Some would make niceChristmas trees.

Doug Uphoff, Shelbyville, Shelby County: This harvest isgoing to be a record, and it’s notgoing to be in bushels per acre.It’s going to be on acres covered,because we probably are goingto be done with harvest around inmy northern part of the county inSeptember. There have been afew beans harvested, with yields

at 50 to 60 bushels per acre. Corn is still rang-ing anywhere from 70 bushels per acre up to175. I have not heard of any 200-bushel aver-age cornfields. There could be some in thesouthwestern part of the county, but those willbe very spotty. There is a lot of activity goingon — fertilization, lime being spread, and chis-el plowing. Nearby corn on the board hit $5last week. Prices at the elevator: $4.70 forcash corn, $10.16 cash beans; $4.90 forJanuary corn and $10.48 for January soy-beans. That is the Decatur price in the eleva-tor. Field prices: $2.61 for farm diesel, $3.09for truck diesel, $2.67 for ethanol. I knoweveryone is tired since we haven’t had manyrain events, so be very careful.


CROPWATCHERS

Kevin Raber, Browns, Wabash County: The rain I was talk-ing about in my last report didn’tamount to much. I probably had0.1 of an inch of rain or less.Corn harvest probably will bedone in a week or less. Yieldsare about 15 to 20 bushels lessthan I expected in most fields. Ihaven’t cut any beans yet, but Iexpect the extended dry periodwill cut their yields, also.

Ken Taake, Ullin, Pulaski County: After the 3 inches of rainthat I reported last week onSept. 9, we received another twoinches on Sept. 10. It seems likethat’s more rain than we’ve hadall summer. It kept us out of thefield over the weekend, but wedid get back in the field onMonday (Sept. 13). We’ve been

running and shelling corn since then. We’redown to less than 200 acres of corn to go.Alfatoxin continues to be a problem in corn.We’ve not had any rejected, but I know con-siderable amounts are still getting rejected atthe local elevator. There are quite a fewbeans in the area being cut, but ours aren’tquite ready. We’ll probably start harvestingsoybeans this week. I really haven’t heardanything on soybean yields. Please remem-ber to be careful during this busy season.

Dean Shields, Murphysboro, Jackson County: We hadrain of 1.75 inches in some spotsduring the weekend of Sept. 11-12. Later, another shower camethrough, and we got a couple oftenths of an inch from it. The cornground, has been picked but theground is a little damp to be work-ing right now. Most people I talked

to have been disappointed with their cornyields. We’re talking maybe 20 percent lessthan normal. Nobody seems to be braggingabout good corn this year. The bean crop iscoming on, and a lot of the leaves are drop-ping. There’s been a patch or two of beansharvested, but not much. I look for this week tostart up pretty good on the beans. Milo is look-ing good. It’s got nice big heads, and I think it’sgoing to do OK. I think wheat acres are goingto be up to near normal this year, if not a littlemore. Have a safe harvest and take care.

Page 7 Monday, September 20, 2010 FarmWeek

CROPWATCHERS

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

Corn harvest pace brisk; bean harvest under wayBY DANIEL GRANTFarmWeek

A large number of farmerswho last year were unable tostart corn harvest in Septem-ber are on pace this year tofinish the job before Oct. 1.

Corn harvest in Illinois asof the first of last week was18 percent complete, threetimes faster than the five-yearaverage pace of 6 percent.

Most farmers last weekdodged a few rain drops andcontinued to make significant

progress on corn harvestwhile many started cuttingsoybeans.

“Corn is disappearing at avery rapid rate,” said Tom Rit-ter, a FarmWeek Cropwatch-er from Macon County.“Probably more than 70 per-cent of the corn has been har-vested.”

Last year just 1 percent ofthe corn crop statewide wasin the bin as of Sept. 13,according to the NationalAgricultural Statistics Service

Illinois field office. The portion of the corn

crop that was mature as thefirst of last week was 79 per-cent compared to just 6 per-cent at the same time a yearago.

Corn harvest “is feeling alittle more normal, outside ofthe (disappointing) yields,”said Trevor Toland, a farmerfrom McDonough County.“The pace really picked up”last week, he said.

Farmers are off to an early

start on soybean harvest aswell. Three percent of thesoybean crop was harvestedas of the first of last weekcompared to the five-yearaverage of 1 percent.

“A few soybeans have beenharvested,” said Jacob Streit-matter, a Cropwatcher fromPeoria County, “The yields oncorn are all over the board.”

Mark Kerber, a Cropwatch-er from Livingston County,also found extreme variabilityin yields so far this harvest.

“In general, corn yields arelower than expected and soy-beans are better than expect-ed,” he said.

Sorghum harvest also is offto a quick start.

Fifteen percent of the cropwas harvested as of the firstof last week compared to thefive-year average of 4 percent.

The rapid harvest paceshould continue this week asthe forecast is for mostlyclear skies with highs in the80s.

BY KEVIN BLACK This season, we saw an

unusual number of caterpillarpests affecting corn, soybeans,

and alfalfa.In corn, wehad earlydevelopmentand ear feed-ing fromcorn ear-worms.

Fall army-worms andwestern bean

cutworms also did their shareof damage in some areas.

In soybeans, we had greencloverworms, soybean loopers,cabbage loopers, garden oralfalfa webworms, celeryleaftiers, yellow striped army-worms, imported cabbage-worms, woolly bear caterpil-lars, and alfalfa caterpillars.

In alfalfa, we encoun-tered garden or alfalfa web-worms, celery leaftiers, and

alfalfa caterpillars.We suspect that some of

this year’s caterpillar activitywas a result of a buildup thatbegan last year. For migratoryinsects, such as the corn ear-worm (soybean podworm), theearly onset of warm weatherallowed early buildup of thepests this season, even allowingan extra seasonal generation ortwo.

This early start also allowedthe caterpillars to get ahead oftheir natural enemies.

It would be nice to say thatwe are now past the seasonalproblems from the caterpillarpests, but this is not so.

Soybean podworm damagerecently has been reportedfrom late-maturing soybeans inWestern Illinois.

(Podworms, by the way, arethe same things as corn ear-worms, only they feed on soy-bean pods.)

Missouri has also reported

severe damage to soybeansfrom this pest.

With early corn maturitythis year, the earworm mothsare attracted to the last greencrops available. In our area,this means late-maturing soy-beans.

Fall armyworms recentlywere reported to be devastat-ing some Southwestern Illinoisalfalfa fields, essentially strip-ping all leaves from the field.

As Yogi Berra is quoted assaying, “It ain’t over ‘til it’sover.”

As long as you have greencrops, keep watching for late-season caterpillar activity.

If insecticide application isnecessary, be sure to heed thelabeled preharvest intervals forthese products.

Kevin Black is GROW-MARK’s insect and plant diseasetechnical manager. His e-mailaddress is [email protected].

Pest caterpillars refuse to give up

Kevin Black

Maintenance can minimize field firesFarmers can greatly reduce

their risk of field fires withregular maintenance of com-bines and other equipmentused to harvest crops, accord-ing to Gail Deboy, a PurdueUniversity Extension farmsafety expert.

Combines are especiallyvulnerable to fires because ofthe many hours they operateat a time and the dry crop fod-der that can collect on them,Deboy said.

“During hot, dry weather,very dry fodder provides anexcellent source to fuel aflame whenever a fire is ignit-ed,” he said.

This year’s early plantingresulted in early maturing ofcrops and unusually dryfoliage during harvest.

Much of what causesmachinery fires are overheatedbearings and belts, exhaustcomponents, clutches andbrakes, electrical malfunctions,and sparks caused by damagedor improperly adjusted com-ponents, and foreign materialentering the processing path,Deboy said.

Drive components cloggedwith crop material also can get

hot enough to catch fire.“As combines have become

larger, they carry much largerquantities of fuel, lubricants,and hydraulic oil,” Deboy said.“Even small leaks in any ofthe systems using flammableliquids can result in a large firein seconds.”

Deboy’s tips for minimizingthe potential for field firesinclude:

• Perform regular mainte-nance on machinery. Keepcombines clean, free of cropresidue, and free of fuel andoil leaks. Service equipment atthe end of the day, rather thanat the beginning, in order todetect overheating compo-nents or smoldering materialthat could burst into flamesovernight.

• Maintain the electricalsystem. Keep a close eye oncomponents that draw heavyelectrical loads, such as startermotors, remote actuators, andheating and cooling systems.Consider fuses that blow regu-larly a warning sign that a cir-cuit is overheating.

• Install portable fire extin-guishers on every large pieceof machinery.

University of Illinois Exten-sion will host two compostingworkshops Monday, Oct. 4.

The first one is for com-mercial landscapers, nurseries,municipalities, and individualcomposters interested in usinghorse manure.

The second is for horse

owners and others in theequine industry.

The workshops are part ofthe Changing Manure Streamsprogram, a joint effortbetween the U of I and Uni-versity of Wisconsin Exten-sion to encourage the use ofcomposted manure.

“The goal is to see if we candivert horse manure in North-east Illinois and southeast Wis-consin from going to the land-fill,” said Randy Fonner, U ofI Extension specialist.

The first workshop will takeplace from 9 a.m. to noon Oct.4 at the Hooved Animal

Humane Society in Wood-stock. The cost is $10 per per-son. For more information orto register, call 800-345-6087.Information also is online at{www.manurecentral.illinois.edu}.

The second workshop forhorse and small livestock own-ers will be from 1 to 4 p.m. at

the same location. The cost is$25 for adults and $5 for chil-dren younger than 18.

The fee will increase to $35for adults after Sept. 27.

To register, go online to{web.extension.illinois.edu/state/calendar_event.cfm?Event-ID=56518.}

U of I Extension launches equine manure and composting project with two workshops

PRODUCTION


Higher feed prices a concern for livestock producersBY DANIEL GRANTFarmWeek

Not all farmers were over-joyed last week when cornfutures cracked $5 per bushel.

Some livestock producersare concerned higher feedcosts could erode their profitmargins.

“It’s a concern, but it’s notsomething we haven’t had todeal with before,” said TrevorToland, a beef producer fromMacomb and president of theIllinois Beef Association(IBA).

Crop prices have rallied inrecent months due in part tocrop losses in other parts ofthe world, particularly Russiawhere a severe drought dimin-ished wheat production.

The grain markets pickedup even more steam last weekafter USDA in its Sept. 10 cropproduction report cut the esti-mated corn yield nationwideby 2.5 bushels per acre com-pared to its August estimate.

USDA subsequently raisedits average corn price estimateby 70 cents to a range of $4 to$4.80 per bushel.

“While (livestock) produc-ers have a bit of margin towork with at present, these

continuing increases in cornprices are whittling awayfrom them pretty rapidly,”authors of the CME GroupDaily Livestock Report stat-ed in their Sept. 13 newslet-ter.

The projected margins forhog producers in 2011, forinstance, have declined from$25 per head in June to acurrent estimate of $7 perhead, according to thereport.

The good news for live-stock producers is that,unlike the feed cost run-upin 2008/09 when livestockprices were below break-

even, the cattle and hog mar-kets also have been bullish inrecent weeks.

Cattle prices earlier thismonth were above $100 perhundredweight and last weekstill were in the high $90s.Meanwhile, pork bellies lastweek reached an all-time highof $1.55 per pound.

“It makes the break-even alot better,” Toland said. “Ithink we (cattle producers) arefeeling if we can weather therecession, we’ll be feeling pret-ty stable. Every indication iswe’ll continue to growexports.”

The strength in livestockprices generally is attributed toan uptick in demand and tightsupplies. The yearly hog

slaughter pace as of last weekwas down 4.4 percent com-pared to last year.

Many Illinois livestock pro-ducers are in better position tohandle higher grain prices thantheir counterparts in otherstates.

A large number of livestockproducers in the state growcorn, so when grain pricesjump, they can shift feedrations in order to sell morecorn on the open marketrather than feed it.

“When you operate bothenterprises (crops and live-

stock), it results in some choic-es,” Toland said.

Many Illinois livestock pro-ducers also have access to dis-tillers dried grains (DDGs) toreplace corn in feed rations.

Dave Seibert, animal sys-tems educator at the Universityof Illinois Extension East Peo-ria Center, recently updatedthe list of co-products avail-able in the state.

The list is available online at{http://web.extension.uiuc.edu/eastpeoriacenter/anisci.html} or by visiting the IBA web-site {www.illinoisbeef.com}.

‘It’s a concern, but it’s not somethingwe haven’t had to deal with before.’

— Trevor TolandIllinois Beef Association president

Remember four Rs for fall fertilizerCorn harvest is advancing rapidly, but that doesn’t mean

fall fertilizer application should follow suit. The Illinois Fertilizer and Chemical Association (IFCA)

asks farmers to think four Rs when it comes to applying fertil-izer: right source, right time, right place, and right rate.

IFCA and the University of Illinois College of Agricultural,Consumer, and Environmental Sciences offered the followingreminders:

Don’t apply anhydrous ammonia until soil temperatures ata 4-inch depth have reached and will remain below 60 degreesFahrenheit if a nitrification inhibitor is included.

If no inhibitor is included, don’t apply anhydrous until soiltemperatures reach and will remain below 50 degrees.

Currently, soil temperatures in Illinois are in the high 60swith some in the 70s. Go online to {www.ifca.com} for dailysoil temperatures.

Do not apply nitrogen before the third week of October inCentral Illinois or the second week of October in NorthernIllinois, even if air temperatures are getting cooler.

No fall nitrogen should be applied on any field south of aline extending from about Jerseyville to West Union.

If applying animal manure, make sure it is incorporatedinto the soil and follow the time of application guidelines sug-gested for commercial nitrogen management.

Do not apply nitrogen to increase crop residue breakdown.

Survey: Grain elevators expandto meet new growing demand

A majority of Illinois’ coun-try grain elevators have beenincreasing storage capacity tomeet the growing demand forspace to store corn and soy-beans, according to an industrysurvey.

Early in 2010, researchers inIllinois State University’sDepartment of Agriculture,supported by the Grain andFeed Association of Illinois(GFAI), surveyed 135 countrygrain elevator managers todetermine changes in theirbusiness structure and capacityas well as the types of cropsthat elevators were receivingfrom their farmer customers.

The results of the 2010 sur-vey were compared to a similarstudy conducted by the sameresearchers in 2007.

As with most sectors of theagricultural economy, the coun-try grain elevator industry hasexperienced consolidation andincreased operating scale overthe past four years.

The number of firms (mem-bers of GFAI) in the industry

declined from 250 in 2007 to227 in 2010, a decrease ofabout 10 percent. During thesame period, the average stor-age capacity of elevatorsincreased by more than 500,000bushels to 4.8 million bushelsof storage per company.

Comparing the responsesfrom the same elevators (2010vs. 2007), 81 percent increasedtheir storage capacity by anaverage of 29 percent. Seven-ty-five percent of the elevatorsthat expanded their capacity didso by constructing new facili-ties, 20 percent increasedcapacity through a combinationof new construction and acqui-sition of existing facilities, and5 percent increased capacity byacquiring existing facilities.

Operating multiple facilitiesunder a central managementhas become common in thegrain industry, with 69 percentof the elevator managersresponding to the survey indi-cating their firm operated outof multiple locations.

FARM SAFETY


On-road ATV use legal but requires cautionMore Illinois farmers may

take to rural roads on their all-terrain vehicles (ATVs),thanks to reinstatement of anIllinois law this summer.

While that may provide anadditional level of harvestefficiency for many producers,it also adds one more safetyconcern for farmers and theirfamilies during a particularlyhectic time.

“ATVs: Work Smart. RideSafe” is the National SafetyCouncil’s theme for NationalFarm Safety and Health Week,which continues through Sat-urday.

Farmers with a valid driver’slicense again can legally operateATVs and utility-terrain vehicles

sure brakes, tires, steering, andrearview mirrors are in goodworking order before heading

out on rural roads. ATVs used on roadways

should carry red, reflectivewarning devices on thefront and rear, as well as aslow- moving-vehicleemblem on the rear of thevehicle.

ATVs also should beequipped with headlightsand tail lamps. Vanasdalesuggests farmers performweekly safety inspections

to ensure brake lights, turn sig-nals, headlights, and tail lampsare functioning properly.

Age is a key factor in on-farm or off-road cross-countryATV operation — not onlythe age of the operator but themodel of ATV used by juve-nile operators. The nationalAll-Terrain Vehicle Associa-tion emphasizes the need to

provide an “appropriatelysized” vehicle for younger dri-vers.

“ATVs are not toys,” Vanas-dale said. “Children are notallowed to ride them on ruralroads. Farmers should super-vise riders younger than 16when they are using ATVs onthe farm. All riders shouldalways wear a helmet.”

Reinstatement of ATVoperation on rural roadwaysoffers an opportunity forfarmers to review liability andproperty insurance coverage,he noted.

Farmers typically can insureATVs for farm use under anauto or farm policy, but ifATVs are driven on ruralroads, owners need to obtain aspecial endorsement to coveroff-premise liability.

Coverage also is availablefor ATVs used for non-farmactivities.

(UTVs) on county and townshiproads for farming purposes,under legislation signed recentlyby Gov. Pat Quinn.

Country Financial com-mercial agribusiness losscontrol representative EricVanasdale noted ATVs areimportant tools for farmerswho use the compact vehi-cles to travel betweenfarms and check on crops,fences, and livestock.

Fifty Illinois residentsdied as the result of ATV-related incidents from2006-08, according to theConsumer Product SafetyCommission. Of the 204 ATVdeaths that occurred between1990 and 2008, 94 percent

occurred off the farm.A recent Journal of Rural

Health article concluded Cen-

tral Illinois children were morelikely than the national averageto be injured in ATV accidents.

“Now that farmers canoperate their ATVs on road-ways again, rural motorists andfarmers will need to watch foreach other more than ever,”Vanasdale stressed.

Vanasdale urged farmers toregularly check ATVs to make

ATV safety No. 1 for cattlemanCarroll County farmer Lyle Miller is a second-generation

cattleman who was among the first to adopt the use of all-ter-rain vehicles (ATVs) in the early 1980s.

That’s particularly noteworthy achievement, as Miller wasonly about 8 years old at the time.

Since then, he has made farm ATV safety paramount notonly because he cares about his family’s safety, but also becausehe knows how dangerous ATVs can be for young riders.

“Back when I first got them and when I was a teenager, Iused them to do chores, but mostly I did a lot of playing onthem,” Miller related. “We’d get to horsing around on them andwe’d get to racing.”

While racing with his brother-in-law as a teenager, Millerrode his ATV over a wet hay field at a high speed. It flippedand landed on him but he was not injured. That incidentnonetheless taught him an important lesson.

Miller’s children, 10-year-old Austin and 7-year-old Alyssa,use ATVs weekly. Operating four ATVs on three rented pas-tures among about 90 cattle, the Millers know that workingsmart and riding safe is essential.

Here are some tips for safe ATV use:• Always wear a helmet. In fact, the national ATV Safety

Institute recommends use of a U.S. Department of Transporta-tion-compliant helmet, goggles, long sleeves, long pants, over-the-ankle boots, and gloves.

An ordinary bike helmet is inadequate, University of Illinoisag safety specialist Chip Petrea stressed: “You’re talking aboutmore speed on rough terrain.”

• Do not allow passengers on a single-rider ATV or morethan two passengers on a two-rider vehicle. Passengers, as well,should wear helmets, Petrea said.

• Make sure the ATV is age-appropriate. Nearly 90 percentof youth ATV-related injuries reportedly occur when a juvenileis operating an adult-sized ATV.

Miller and wife, Codee, bought ATVs for their children thatwere approved for riders 6 years and older, with dimensionsand control mechanisms that were age- and size-appropriate.Both Austin and Alyssa’s ATVs are rated for younger drivers,meaning they operate at far slower speeds.

• Do not operate an ATV until properly trained. For infor-mation on a free ATV “E-course” for children, teens, or adults,visit {www.atvsafety.org} on the web.

• Follow safety instructions provided with ATVs. Austin andAlyssa watched the riding DVD that accompanied their vehi-cles. Neither may use their ATV without adult supervision.

• Be aware of surroundings and remain alert while operatingATVs.

• No horseplay. “As with any privilege, it can be taken awayif you don’t use it properly,” Miller said.

Typically, the Millers use their ATVs as alternative vehiclesfor fetching supplies, checking fences, and tracking escaped cat-tle.

“There’s not a steel frame around you protecting you, andsafety is a No. 1 issue with us,” Miller stressed. “If we respectthe ATVs just like we respect the cattle and our tools andequipment, then everything works out well.”

Grain can be a powerful,deadly force in the fallBY MARTIN ROSSFarmWeek

Grain is the coin of the Illinois producer’srealm and the focus of frenetic fall activity.

Grain also can be a powerful and potentiallydangerous force with which to be reckoned, asillustrated by a recent rash ofgrain bin fatalities and Septem-ber grain explosions at Centraland Western Illinois elevators.

According to a CountryFinancial survey, 21 farm-relat-ed deaths occurred in Illinoisduring the period from July 1,2009, through June 2010 — thelowest number in six years and12 fewer deaths than in 2008-09, when 33 farm-relateddeaths were reported.

However, deaths involvinggrain bins accounted for 19percent of Illinois farm fatalities over thepast year vs. 12 percent during the 2008-09period.

The grain bin fatalities reveal a guide to therange of risks involving storage facilities. Twoteens — a 19 year old and a 14 year old — diedfollowing a late July grain entrapment at Mt.Carroll. A 63-year-old producer fell from aMcLean County bin in June.

According to local police officials, a 37-year-old rural Rochelle man who perished in a LeeCounty bin in March wasn’t wearing a safetyharness and was walking alone inside the binaround a large mound of corn.

Stress and routine based on on-farm famil-iarity can heighten risks even for experienced,able-bodied grain handlers, University of Illi-nois ag safety specialist Chip Petrea toldFarmWeek.

“There’s always the potential for taking ashortcut across (power takeoff unit) drive lines,particularly with augers that use a tractor todrive them,” Petrea noted.

“If someone’s going to go up and look in the

bins, be sure any unloading auger is off. In thefall, we would want people to shut off stiratorsbefore they even go up to look.

“I recognize that’s not a popular option,because part of the reason they go up is to seethat things are running OK. If they going to go

up with them running, they should have some-one else there to keep in contact with.”

Ideally, a bin should be topped with a guardrail, and many modern bins are equipped with acaged vertical ladder to help prevent falls or acurving stairway that reduces hazards associatedwith vertical ascent.

If producers must enter a bin, the top shouldbe opened for air circulation, at least one com-panion should remain in verbal contact fromoutside the bin, and power to grain equipmentshould be locked out.

Further, Petrea stressed producers should low-er grain augers when moving from bin to bin toavoid potentially lethal contact with power lines.

The bin is not the only key danger point dur-ing harvest. Petrea urges producers to keep chil-dren — especially those tall enough to climbbut young enough for possible horseplay —away from grain wagons.

The danger of entrapment and suffocation isas great for kids playing in the wagon as it is foran unprotected, unaccompanied adult in thebin, he said.

‘If someone’s going to go up and look inthe bins, be sure any unloading auger isoff. In the fall, we would want people toshut off stirators before they even go upto look.’

— Chip PetreaUniversity of Illinois farm safety specialist

STATE


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These days, there’s a lot of talk out there about stacked traits and improved genetic profiles. But the truth is, there is one brand of seed corn developed specifically for the needs of Midwest growers — FS Seed Corn. With its high-yielding genetic foundations and proven performance record, FS Seed Corn is offering Midwest corn growers greater profit opportunities than ever before. So when you choose FS Seed Corn, you can be sure you’re getting more than just top-of-line genetics, you’re getting bottom line results. Now how smart is that?

Always follow IRM guidelines and grain channeling requirements.

Illinois last week ceremonially kicked off a$98-million project to upgrade 90 miles ofUnion Pacific Railroad track between Altonand Lincoln for high-speed rail service. Theproject represents the first high-speed railupgrades in the nation, according to Gov. PatQuinn.

The project is funded with federal stimulusdollars.

“This project is essential to strengtheningIllinois’ economic recovery, creating jobs, anddeveloping long-term investment in Illinois,”Quinn said at the ceremony marking the start.

Illinois’ high-speed rail signature routefrom Chicago to St. Louis received a total of$1.1 billion for corridor improvements.

Construction on the Alton-to-Springfieldsegment actually began in the Alton area ear-lier this month. Next, workers will concen-trate on the track between Springfield andLincoln.

A study is being conducted to determinethe best route for high-speed rail trafficthrough Springfield. Weather permitting, thegoal is to complete the initial segment of trackupgrades by late December.

New sector caucuses elect C-FAR leadersThe Illinois Council on

Food and AgriculturalResearch (C-FAR) recentlyelected new officers under thenew structure and operationsapproved in June.

Four new sector caucuseselected their respective repre-sentatives. They were: cornsector chairman, LeonCorzine of Assumption, rep-resenting the Illinois CornMarketing Board, and the vice

Matusheski of Glenview, rep-resenting the Institute of FoodTechnologists/Chicago.

“It’s a good blend of lead-ership representing a variety ofdisciplines and interests,” saidJim Charlesworth, the outgo-ing C-FAR chairman and aGROWMARK executive.

Each of the four sectorsalso elected a new C-FARboard of directors.

Those elected to the boardand their affiliations are: SusanAdams, Atlanta, the IllinoisCorn Growers Association;Howard Brown, Bloomington,GROWMARK; Dan Farney,Morton, ISA; Bill Fisher,Urbana, Illinois Pork Produc-

ers Association; Diane Hand-ley, Bloomington, IllinoisWheat Association; RandyPearson, Bloomington, IllinoisSeed Trade Association; RossPrough, Greenfield, ISA;Blake Roderick, Pittsfield, OrrAg Research Center; Rod Stoll,Mahomet, Farm Credit; andTom Toohill, Mt. Pulaski, SIUCollege Ag Sciences AlumniSociety.

Chuck Cawley of Rochellewas appointed by IFB to aone-year term.

Three officers were electedby the new board of directors.They are: Cawley, chairman;Adams, chairman elect; andRoderick, secretary/treasurer.

chairman, Harold Reetz ofMonticello, representing theIllinois Fertilizer and ChemicalAssociation.

The soybean sector chair-man is Ross Prough of Green-field, representing the IllinoisSoybean Association (ISA),and the vice chairman is LarryMartin of Highland, represent-ing the Illinois Farm Bureau.

The pork-beef-dairy sectorchairman is Jim Fraley of

Bloomington, representingIllinois Milk Producers Associ-ation, and the vice chairman isSteve Wiyatt of Effingham,representing the Southern Illi-nois University College of AgSciences Alumni Society.

The specialty crops-wheat-allied industries sector chair-man is Charles Treser ofBelleville, representing the Illi-nois State Grange, and thevice chairman is Nathan

Illinois starts high-speed rail project

IDOA receives$1.24 million forfeed inspections

The Illinois Department of Agriculture (IDOA) will receive$1.24 million in federal funding to conduct feed inspections toprevent bovine spongiform encephalopathy (BSE).

The U.S. Food and Drug Administration (FDA) and IDOAsigned a five-year agreement to ensure that cattle feed producedand used in Illinois does not contain ingredients that couldtransmit BSE. Illinois was one of 12 states to receive federalfunding as part of the cooperative agreement.

“For nearly 20 years, our inspectors have been contracted bythe FDA to inspect feed mills and feed manufacturing plantsacross the state,” IDOA Director Tom Jennings said.

“But this agreement will allow us to maintain our expandedon-farm surveillance efforts,” Jennings added. “We believe theseinspections provide additional assurance to consumers and ouragricultural trading partners that Illinois beef is safe to eat.”

Feed contaminated with tissue from the nervous system ofinfected cattle is believed to spread BSE, and FDA has prohibit-ed the use of ruminant protein in feed for cattle and other rumi-nant animals since 1997. IDOA enforces the prohibition throughregular feed inspections.

Over the past two years under a similar agreement with FDA,IDOA conducted 300 on-farm inspections and 100 non-farminspections. More than 1,000 cattle feed samples were collectedand analyzed.

ENERGY


Don’t miss our Early Season Sale from March 17-31, 2010

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Tom Voigt, left, University of Illinois Extension specialist, describes his participation in a national miscanthusresearch project during the recent field day at the U of I’s Energy Farm in Urbana. (Photo by Kay Shipman)

U of I Energy Farm part of national biomass study

In contrast, Nebraskaplot yields decreased asnitrogen rates increasedfrom 6 tons per acre for nonitrogen down to 5.5 tonsper acre for 107 pounds ofnitrogen.

The highest yield in NewJersey was harvested on the53-pound nitrogen plot at5.6 tons per acre.

Yields were 4.1 tons withno nitrogen and 5.4 tons onthe 107-pound nitrogenplot.

Voigt said the yield datafrom Kentucky, Nebraska,and New Jersey were“impressive” because sec-ond-year plants usually pro-duce much less than longer-established stands of threeyears or more.

BY KAY SHIPMANFarmWeek

The towering miscanthuscrop on the University ofIllinois’ Energy Farmshould add to the nation’sknowledge about plant-based energy sources.

“Our goal is to get thegreatest yields with the low-est amount of inputs and lessenvironmental impact,” saidTom Voigt, the U of I Exten-sion specialist involved in thestudy.

Voigt described hisresearch project during therecent tour of the researchfarm.

The Urbana site is one offive field trials in the U.S.Department of Energy(DOE)/Sun Grant’s herba-ceous feedstock partnership.

The other trials are beingconducted in Kentucky,Nebraska, New Jersey, andVirginia.

The DOE/Sun Grant pro-ject’s goal is to learn “what(crop) is the best to grow(for biomass) and where togrow it,” Voigt said.

Voigt pointed to U of Imiscanthus plots, planted in2008, that are part of a fer-tilizer trial.

In the national trial,researchers are testing nitro-gen rates of zero, 53pounds, and 107 pounds peracre.

Researchers have report-ed mixed results from previ-ous nitrogen rate studies inmiscanthus production.

Some studies showed apositive crop response tonitrogen applications whileothers showed no response,according to Voigt.

The researchers are usingurea as an annual nitrogensource because it is lessexpensive, he added.

In Urbana, only 17 per-cent of the miscanthusplants involved in the studysurvived the first year andthe field had to be replant-ed.

Therefore, yield datawere not available for 2009.

But results were availablefrom Kentucky, Nebraska,and New Jersey.

No data were availablefrom Virginia because theplots were just planted thisyear.

The Kentucky plot yieldswere the same — 6.3 tonsper acre of dry matter —for both zero and 107pounds of nitrogen, but theyield was 6.6 tons on theplot with 53 poundsapplied.

LIVESTOCK


Cattle market: Strong demand could trump bearish reportBY DANIEL GRANTFarmWeek

Cattle prices this weekcould give back some recentgains as U.S. inventory num-bers released Friday were wellabove trade expectations.

Live cattle futures at theChicago MercantileExchange prior to the USDAcattle on feed report Fridayclimbed to new contracthighs in anticipation of aherd reduction. Overall, livecattle prices last week aver-aged about $97 per hundred-weight.

USDA, however, surprisedmany traders when it estimat-ed cattle and calves on feed asof Sept. 1 totaled 10.17 mil-lion head, 3 percent above yearago levels.

Placements in feedlots dur-ing August were estimated at2.27 million head, 7 percentabove last year.

“The two big surprises (ofthe cattle on feed report) are

the two big numbers,” saidGraham Utter, AgriVisor mar-ket analyst. “The number on

feed and placements are high-er than expected.”

Utter believes cattle pricesthis week could inch lower,but he doesn’t foresee amajor break in the market anytime soon due to strongdemand.

U.S. beef exports in Julytotaled 2.049 billion pounds,up 23 percent from the same

time last year. The growth inbeef exports was fueled by asurge in sales to South Koreaand Russia, among other desti-nations.

“It (the cattle on feedreport) was a little bearish, butthe other thing to look at is

we’re still seeing (cattle) go outthe door,” Utter said. “Themarket has stayed strong since

the summer when it started torally.”

A build-up of animals, how-ever, could weigh on the mar-ket later this year or by nextspring. The cattle inventory asof Aug. 1 also posted a gain (2percent) compared to last year.

“I don’t know if produc-tion will start to slow downuntil feeder prices are lower,live prices are lower, orthere’s a cut in demand,”Utter said.

So far, higher corn pricesapparently haven’t been amajor deterrent to beef pro-duction. Corn prices on Fridayposted a 17-cent gain.

Cattle producers and feed-ers “don’t seem too worriedabout the price of corn basedon the number (of animals)coming out,” Utter said. “Butat some point, it will have aneffect.”

Marketings of fed cattleduring August totaled 1.92million head, 7 percent abovethe same time last year.

FarmWeekNow.com

Full details of the Septembercattle on feed report are atFarmWeekNow.com.

Auction CalendarWed., Sept. 22. 11:30 a.m. Whiteside

Co. Land Auction. Fulton LandDevelopment, LLC, FULTON, IL. Lenny

Bryson, Auctioneer.www.lennybrysonauctioneer.com

Wed., Sept. 22. 7 p.m. Land Auction.Lotta Moore Heirs, CLINTON, IL.

Haycraft Auction Co. Inc.www.haycraftauctions.com

Fri., 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.

‘It (the report) was a little bearish, but the other thingto look at is we’re still seeing (cattle) go out the door.’

— Graham UtterAgriVisor market analyst

September 19-25, 2010

FROM THE COUNTIES


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For 85 years, we’ve been helping farmers keep up with all the changes in agriculture.

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Keeping up with the changes

CUMBERLAND — TheWomen’s Committee will

sponsor a blood drive from 2 to6 p.m. Wednesday at the ToledoChristian Church. This is inhonor of National Farm Safetyand Health Week. Call the FarmBureau office at 217-849-3031for an appointment or moreinformation.

• Farm Bureau has “Passwith Caution” stickers, slow-moving-vehicle emblems, andreflective kits to purchase.Members who buy one get onefree. Call the Farm Bureauoffice at 217-849-3031 for moreinformation.

• Farm Bureau will sponsorStroke Detection Plus Healthscreenings Tuesday, Oct. 5, atthe Toledo Christian Church.Screenings will include carotidartery, aortic aneurysm, periph-eral vascular disease, and osteo-porosis. Cost is $90. Call 877-732-8258 for an appointment orthe Farm Bureau office at 217-849-3031 for more information.

KENDALL — The PrimeTimers will sponsor a

bus trip Wednesday, Oct. 13, toChicago. The bus will leave theFarm Bureau office at 7:30 a.m.The group will take walkingtours of Vietnamese and Indianareas, visit a Polish museum,and eat at an Oriental cuisinerestaurant. Cost is $50, whichincludes bus, lunch, and driver’stip. Call the Farm Bureau officeat 630-553-7403 for reserva-tions or more information.

• Farm Bureau will sponsortwo “Meet the Candidates”forums in October. The firstwill be at 7 p.m. Tuesday, Oct.19, at the Historical KendallCounty court house. All countycandidates have been invited.The second forum will be at 7p.m. Tuesday, Oct. 26, also atthe court house. This forumwill include congressional, staterepresentatives, and state sena-torial candidates from KendallCounty. Both forums will bebroadcast on WSPY Radio.

• The annual meeting will beMonday, Nov. 15, at theYorkville Legion. More infor-mation will be announced at alater date.

• The Young Leader andNewark FFA Farm Toy Showwill be from 9 a.m. to 2 p.m.Sunday, Nov. 21, at NewarkHigh School. Cost to rent atable is $15. Call the FarmBureau office at 630-553-7403to hold a table or more infor-mation.

LASALLE — FarmBureau and Country

Financial will sponsor a defen-sive driving course from 10 a.m.to 2:30 p.m. Wednesday andThursday, Sept. 29-30, at theFarm Bureau office. Cost is$15, which includes materialsand lunch. Non-Farm Bureaumember’s cost is $25. Thecourse is available to those whoare 55 and older and are policyholders. Call the Farm Bureauoffice at 815-433-0371 or your

Country agent for reservationsor more information.

• Farm Bureau has slow-moving-vehicle emblems avail-able for $2. Slow-moving vehi-cle kits are $6. Call the FarmBureau office for more infor-mation.

LEE — Farm Bureaumembers may buy one

slow-moving-vehicle emblem atthe Farm Bureau office and getone free. This is in honor ofNational Farm Safety andHealth Week.

• The Lee County FarmBureau Foundation Agriculturein the Classroom teacher grantapplications are due Oct. 1.Teachers must be a graduate ofSummer Ag Institute. Call theFarm Bureau office at 857-3531or [email protected] for anapplication.

ENCOURAGING A BREAKSchuyler County Farm Bureau recentlyconducted a safety promotion asking

farmers andtheir employ-e e s t o s l owd o w n a n d

take a break during the hectic harvestseason. Farm Bureau staf f trav-eled throughout the county makingstops where people were working inthe fields. A drink, cookies, and fruitwere offered, and those needing newslow-moving-vehicle signs were givenan emblem to replace faded ones.Here, Pat Briney Schisler, who wascombining in the Bluff City bottoms, isoffered a basket of goodies by FarmBureau manager Kelly Westlake. (Pho-to by Schuyler County Farm Bureau AgLiteracy Coordinator Jean Barron)

PROFITABILITY


Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $35.94-$45.00 $40.3240 lbs. $58.99 $58.9950 lbs. n/a n/aReceipts This Week Last Week

23,985 32,872*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $75.81 $78.84 -3.03Live $56.10 $58.34 -2.24

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn09-9-10 7.0 30.0 36.309-2-10 14.5 23.3 39.6Last year 10.9 22.5 43.6Season total 10.3 293.7 52.8Previous season total 18.2 224.2 69.1USDA 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 $97.88 $97.46 0.42Heifers $97.90 $97.51 0.39

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 Change112.22 113.71 -1.49

CME feeder cattle index — 600-800 Lbs.

Slaughter Prices - Negotiated, Live, wooled and shorn 120-140 lbs. for 125-146 $/cwt., dressed, no sales reported.

Lamb prices

Miller: Best to plan for higher propane pricesBY RANDY MILLER

What a difference a yearmakes! After last year’s wildgrain-drying demand, whichran deep into winter, we are

set up to haveone of theearliest har-vests inrecent history.

Thepropaneindustry cer-tainly hasseen some

interesting times. As we nearthe beginning of the heatingseason, let’s take a look atwhere the propane market istoday and what the futuremight hold.

Propane stocks at the endof August totaled 62.5 millionbarrels, nearly 7 million barrelsbelow last year. Regionally,Midwest propane stocks areslightly below 28 million bar-rels, nearly 3 million barrelsbelow last year.

However, last yearpropane inventories were atrecord levels, and most in theindustry believe that 60 mil-lion barrels is the “comfortlevel” to enter the heatingseason. Current inventorylevels are still above the five-year average.

Propane demand has beensporadic this summer in theMidwest, as summer fill vol-umes have been light. Afterthe strong grain-drying

demand and a fair winter forheating, weather turned warmin late March and April, caus-ing propane tanks to remainfuller than normal. In fact,2010 had the warmest Aprilon record.

Exports and demand fromthe chemical industry keptinventories somewhat in checkthis summer. Early weatherforecasts for the winter aremixed, but the recent trendhas been a little colder. Heat-ing degree days the last threewinters in the Midwest arenearly 12 percent higher thanthe previous four winters. Willthe trend continue?

Truthfully, trying to predictthe weather is at best an edu-cated guess. Nevertheless, it’s

prudent to budget your heat-ing needs toward the colderforecasts.

Crude oil prices, perhapsthe best guide to propaneprices, are in a carry position,meaning that futures prices

into the winter are higher thancurrent levels. With strongercrude prices, even with thebalanced supply/demand situ-ation in propane, propaneprices likely will be stronger inseason.

What to do? Forwardcontracts continue to be thebest tool to manage volatilityand uncertainty in today’smarketplace. Also, takingadvantage of your retailer’seven-payment plan helpscash flow by spreading yourcosts evenly over the entireseason.

If you haven’t done soalready, be sure to follow upwith your local FS membercooperative for its contractingand even-pay programs, andtake the worry out of the heat-ing season.

Randy Miller is GROW-MARK’s director of propane oper-ations. His e-mail address [email protected].

Randy Miller

Input costs projected to increase in 2011BY DANIEL GRANTFarmWeek

It appears farmers will needgood production and a contin-uation of strong commodityprices to remain profitable inthe coming year.

The University of Illinois isprojecting input costs for 2011could surpass 2010 as the sec-ond-highest on record.

“We’re projecting higherproduction costs in 2011, ledprimarily by higher fertilizercosts,” Gary Schnitkey, U of IExtension farm managementspecialist, told the IllinoisFarm Bureau Profitability

Advisory Team. Expenses projected for

2011 “won’t be as high as2009, but they would be thesecond-highest on record,” hesaid.

Schnitkey projected anhy-drous ammonia prices this fallin Illinois could average $600to $650 per ton, a considerablejump from the average sum-mer price of $548 per ton.

Higher fertilizer prices wereprojected to boost the cost ofgrowing corn on highly pro-ductive farmland in CentralIllinois next year by $10 peracre.

The farm management spe-cialist believes fertilizer pricesare rising, despite relativelylow natural gas prices, due toincreased pressure to outbidcountries such as China andIndia for fertilizer. He alsonoted U.S. corn and wheatacres are expected to increasein the coming year, which willboost fertilizer demand.

Meanwhile, corn seedprices were projected toincrease by an average of $5per acre while total powercosts for corn production inCentral Illinois in 2011 wereprojected to reach an all-time-high of $89 per acre.

Power costs are on the risedue to higher prices of fuel,machinery repairs, newmachinery, and depreciation.

“The cost of a new com-bine from 2005 to 2010increased by about 35 per-cent,” said Schnitkey, whonoted the cost of new farmmachinery could rise evenmore in the future due toincreased emissions regula-tions.

Schnitkey also believes therecent run-up in commodityprices — corn futures lastweek topped $5 per bushel —will play into higher prices for

ag inputs. He noted many ten-ants and landlords are in theprocess of negotiating rentsfor next year.

“If we hadn’t seen the(crop) price increase, we prob-ably would’ve been looking atstable to declining cash rents,”he said. “But increased com-modity prices kept those cashrents going up.”

The trend is a major con-cern for the Profitability Advi-sory Team, according to itschairman, Kent Schleich, IFBDistrict 8 director fromFairview.

“We could be setting our-selves up for similar problems(as in 2008/09 when input

prices set new record highs) ifpeople are basing prices onexpectations rather than reali-ty,” said Schleich, who saidcorn yields in his area this yearcould be down 25 percent ormore.

Yield variability shouldn’taffect next year’s supply ofseeds, according to Brian Dev-erman, senior marketing man-ager for Pioneer Hi-Bred.

“We put measures in placeto prevent that,” Devermantold the advisory group. Hereported seed prices in Illi-nois for 2011 likely willremain flat for soybeans andwill be flat to slightly higherfor corn.

PROFITABILITY


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CASH STRATEGISTCorn Strategy

�2010 crop: The Decem-ber contract has been unable topenetrate $5, an indication therally could be ending. Thiscoincides with the seven-weeklow that is expected to bottomin late September. Sales shouldhave been increased last weekto 70 percent. Boost sales to80 percent now. Storage costsare too steep to warrant storingcorn off the farm. But forfarmed-stored grain, consider ahedge-to-arrive (HTA) contractfor March delivery.

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

�Fundamentals: Thetrade talks about disappointingearly yields, but tends to ignorethe good ones. And betteryields should occur when theharvest gets under way innorthern and northwesternparts of the Corn Belt. Littlehas been done there. The 11percent harvest completion wasahead of the 6 percent average.Export sales slowed last weekto 587,900 million metric tons(22.9 million bushels), sending acautionary note to those talkingup demand.Soybean Strategy

�2010 crop: Demand needsto strengthen to consume whatlooks like a very good crop. ASouth American crop problem isabout the only thing that couldcarry prices higher yet. Boostsales to 80 percent now, espe-cially if you store soybeans com-mercially. A HTA may work asa strategy to price commerciallystored soybeans.

�2011 crop: If SouthAmerica has another big crop,new-crop prices will be lowerthis spring. Make an initial 10percent sale now.

�Fundamentals: Earlyyield reports tend to reinforcethe large crop USDA forecastin its September report. Evenif output eventually slips lower,demand isn’t strong enough tokeep inventories from buildingthis year. Chinese demand isgood, but their buying hasslowed. Our crush marginshave declined, pushing basislevels closer to more traditionalharvest levels. Unless some-thing unexpected occurs, prices

could slip 70 to 80 cents intoharvest, maybe more.Wheat Strategy�2010 crop: Wheat contin-

ues to trade in a choppy, side-ways pattern. If the Decem-ber contract would penetratethe 20-day moving average, itwould suggest the trend isshifting lower. Wrap up salesif Chicago December futuresrallies to $7.40. Use dailystrength for catch-up sales.Storage hedges, or HTA con-tracts, for winter delivery arestill the best tool.

�2011 crop: Use rallies to$7.40 on Chicago July 2011

futures for catch-up sales. Ifbasis is wide compared to thispast summer, consider a HTAcontract.

�Fundamentals: Interna-tional growing problems con-tinue to pop up and the trade isnow keeping an eye on harvestconditions in Canada. Theyhave been contending with wet,cold weather and over the pastweek have been threatened byfrost. In addition, Russia, Kaza-khstan, and Ukraine all remaindry, hampering winter wheatplanting progress. But Aus-tralian and Argentine potentialis looking a little better.

Strong harvest rallies arerare. More often than not,they end up being good sellingopportunities. While there areexamples of markets that rallythrough harvest, continuinghigher well into the marketingyear, they tend to be theexception, not the rule.

The two example yearstraders are talking about thatcountered the typical harvestrally peaks are 1995 and 2007.

The year 1995 came in themidst of a wave of Chinesewheat and corn imports tobuild stocks, the Chinesechose to liquidate during theearly part of this decade. Chi-nese stock building drovewheat supplies outside ofthat country to extremelytight levels.

U.S. crops were smaller in1995 as well. Wheat yieldsand production were thesmallest they had been in fouryears. Corn yields were hit byextreme heat that summer,pushing them 8 to 9 percentbelow trend.

The Chinese buying carriedwheat prices to the highestlevel in 15 years. Crop prob-lems and strength in wheatcarried corn prices to thehighest level in seven years.Both continued higher into1996, capped by a springproblem with the 1996 wheatcrop.

The 2007 situation should

Basis charts

be more fresh in your minds.Grain prices rode the wave ofinvestment demand for com-modities, led by the surge incrude oil prices to the $147peak. That doesn’t appear tobe the case this time around.

Instead, we think the cur-rent situation has more incommon with fall rallies suchas those in 1974, 1980, and1983. The first two instancesstarted from late spring/earlysummer low prices. The ral-lies into the fall were triggeredby adverse summer weather.

In 1974, the infamous“triple whammy” occurred:late planting, summer drought,and an early freeze. Summer1980 weather was hot/dry,dropping yields 9 percentbelow trend. Corn pricespeaked in late September,shortly after the frost.

Talk, and subsequentinstallation, of a massiveacreage setaside programstarted the 1983 corn rally atthe end of 1982. A harshsummer drought compound-ed the situation, droppingyields 22 percent below trend.Prices peaked with the weath-er, but stayed high into mid-September.

The 1980 corn market ral-lied close to the $4 then all-time high at the beginning ofDecember, only to fall 15 per-cent in eight days.

In all three cases, pricesdeclined during the marketingyear. High early prices suc-ceeded in cutting demand.And as much as you thinkdemand cannot decline thisyear, traders did not anticipatethe depth of demand destruc-tion when prices were peakingin those examples.

Short crops do have longtails, i.e., high early prices cutdemand, causing prices to gen-erally decline through the mar-keting year. No matter whatyou think, demand at $5 cornwill not be the same asdemand at $4 corn.

And, with the big hedgefunds already long a record 2billion bushels, the risk of a1980-style collapse is ever pre-sent.

Cents per bu.

Harvest rallies offer opportunity

PERSPECTIVES


Selling American-made goods and services is a keyto economic recovery — and the latest export num-bers suggest that farmers have the potential to leadthe United States out of its economic doldrums.

We’re on track to sell more than $107 billion infarm products to foreign customers this fiscal year,

according to recent USDA sta-tistics. That would make 2010the second-best year for U.S.farm exports, trailing only our

showing of $115 billion in 2008. For 2011, USDAprojects sales of $113 billion.

This is excellent news not only for those of uswho grow crops and produce meat, but also for theU.S. economy as a whole.

As Secretary of Agriculture Tom Vilsack pointedout, every $1 billion in agricultural exports supportsmore than 8,000 jobs and generates an extra $1.4 bil-lion in economic activity.

That’s because food isn’t merely grown and har-vested. It’s also processed and shipped by Americanworkers who never set foot on farms.

President Obama certainly understands the powerof an export-charged economy. Earlier this year, hepromised to double U.S. exports by 2015.

Yet we can’t afford to stand still and assume thatfarm exports will grow like a field of corn on a hotsummer day. Trade must keep up not only with for-eign demand, but also with the rising tide of technol-ogy.

In the near future, I’m going to start growing a lotmore food. At least that’s what the seed companiestell me. They claim that advances in breeding andgenetics will allow the commercialization of seedsthat yield 50 percent more food within the nextdecade.

Our growing world will need these new sources offood and energy because demographers expect ourplanet to have 9 billion inhabitants by 2050.

What’s more, we must feed and fuel this burst ofpopulation in a sustainable manner. That means rais-ing more crops on existing farmland. The alternativesinclude watching Brazil convert rainforests into soy-bean fields and tolerating an unprecedented level ofglobal hunger.

Farmers almost always welcome technologicalleaps. The improved genetics of GM crops haveallowed us to grow more crops even as we spendless on herbicides and pesticides. There’s an addi-tional environmentalbenefit because wedon’t have to till asmuch. This conservesfuel and prevents soilerosion.

At the same time,we’ve traditionallyviewed increased pro-duction as a mixedblessing. It can pro-vide us with theopportunity to sellmore of what wegrow. If everybodygrows more, however,high yields can lead topoor prices as supplyfalls out of sync withdemand. In otherwords, production isgood but overproduc-tion is bad.

A new generationof geneticallyenhanced seeds thatdelivers a substantial increase in yield may force usto confront a crisis of overproduction. All farmerswill suffer, but the smallest farmers will pay theprice first. It could force many out of business.

The solution is to guarantee long-term foreigndemand for what we grow in the heartland. Thisshouldn’t be too difficult, given population patternsin Asia and elsewhere.

China soon will pass Mexico as the second mostimportant destination for U.S. farm exports, rightbehind Canada.

Yet nothing is automatic. Our competitors want aslice of this market as much as we do. The Obamaadministration must secure our future exportsthrough diplomacy — and specifically by creating

favorable trade conditions for American-made prod-ucts.

This means coming into full compliance withNAFTA (North American Free Trade Agreement),

which requires theUnited States topermit Mexicanlong-haul truckerswho meet U.S. safe-ty standards to trav-el our highways (aU.S. Department ofTransportationstudy found thatMexican carriers inthe U.S. had a bettersafety record thanU.S. carriers).

By refusing totake this step, theU.S. has openeditself to Mexico’sfully justifiable retal-iation. Its latestround of sanctionswill cost farmersand manufacturersabout $2.5 billionover the next year.

The White Housealso must push ahead with three free-trade agree-ments that have been completed but continue to lan-guish in Congress.

The pacts with Colombia, Panama, and SouthKorea will help secure the future of farm exports incountries whose combined population is nearly 100million.

American farmers will do their part, continuing togrow the food the world needs. Now Washingtonmust make sure we can sell it.

Bill Horan grows corn, soybeans, and grains in northwestIowa on his fourth-generation family farm. Horan volunteersas a Truth About Trade & Technology Board member andmay be reached at {www.truthabouttrade.org}.

BILL HORAN

guest columnist

Growing the U.S. economy with farm exports

Members of Congress andschool children have wrappedup their summer recesses. Stu-dents have returned to theirschools. Chances are good thatmembers of Congress are a bitmore somber.

During the August recess,many of the country’s farmersand ranchers reminded mem-bers of Congress there’s a lotof work left to do betweennow and Oct. 8.

One of the issues that needsand deserves to be shored up

quicklyis set-tling thequestion

of the estate tax exemption.Last week, Illinois Farm

Bureau leaders lobbied con-gressmen in Washington on theneed for estate tax reform.

On Jan. 1 of this year, theestate tax was repealed. Farm-ers and ranchers liked that, andwould like to see it continue.

Most farms and ranches arefamily-owned, with a goodshare of the farmland owned

by the eldest family member.Under the repeal, when thatfamily member dies, those farmfamilies can this year addressthe personal loss without fac-ing a great financial loss, too.

The concern, though, is thatthe repeal only lasts until theend of this year. Then it revertsto a top tax rate of 55 percentafter the first $1 million of theestate’s value, and that’s beforethe state adds its own estate taxon the estate value.

That kind of cost on a farm,ranch, or any small businesscan be enough to force down-sizing, as chunks often are soldoff to meet the tax burden. In

some cases, that could lead to afamily farm or business shrink-ing to the level of economicunsustainability.

On average, farm andranch estates have 84 percentof their assets tied up in realestate. As has been said onnumerous occasions, farmersare asset rich and cash poor.

If land must be sold topay the tax bill, it reducesthe family’s chances forkeeping the business operat-ing because fewer acres usu-ally mean less income.

In the late 1990s, it tookmedium-sized farm opera-tions two and a half years topay off estate taxes, which atthat time were levied at thesame 55 percent rate wewould see again if Congressdoes not take action thisyear.

In cases in which the landsupports more than one fam-ily household, it usuallymeans that at least one fami-ly has to leave the businessfor the rest to keep farming

or ranching. Generally, thatdoesn’t lead to a happy familygathering at Thanksgiving.

While farmers and rancherswould prefer the permanentelimination of estate taxes,there is writing on the wall thatsome estate tax will be in forceon Jan. 1, 2011.

Members of Congress mustact quickly and with clearvision to demonstrate they lis-tened during their recess.

If they did, they will pass abill that includes an exemptionlarge enough to cover most

farms and ranches, and theywill make sure the exemptionis indexed to inflation.

The bell has rung. Now it’s time to sharpen the

pencils and hit the books tohammer out estate tax reformthat works for America’s farmand ranch families.

Dal Grooms, a regular columnistfor the American Farm BureauFederation, is a native of the Mid-west, where she writes about ruraland agricultural issues.

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DAL GROOMS

guest columnist

Will Congress hit the books and address estate taxes?

FarmWeek September 20 2010

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