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Monday, December 13, 2010 Two sections Volume 38, No. 49

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

THE STATE is implementinga controvers ia l new cemeter yoversight law, although rules havenot been written to set relatedfees. ...............................................5

HUNTERS IN ILLINOISshot a preliminary total of 98,700deer during the seven-day firearmseason in November and Decem-ber. ..............................................16

ILLINOIS FARM BUREAUPresident Philip Nelson urges theadministration and Congress to acton long-delayed free trade agree-ments. .............................................13

BIDDING ADVICE

Former Illinois Farm Bureau President Harold Steele, left, and Fred Eertmoed, a Tazewell County FarmBureau member, chat about items donated for the silent auction at the Illinois Farm Bureau annualmeeting last week in St. Louis. The IAA Foundation uses money from the silent auction to promote agliteracy. (Photo by Al Hasty)

Delegates maintain support for voluntary animal IDBY KAY SHIPMANFarmWeek

Illinois Farm Bureau willcontinue to support voluntaryanimal identification andpremise registration programsfollowing lengthy debate anddelegate action at the IFBannual meeting last week in St.Louis.

County Farm Bureau dele-gates spoke passionately forand against a proposal sup-porting legislation to requireall livestock premises to regis-ter with the Illinois Depart-ment of Agriculture (IDOA)

for traceback purposes duringa disease outbreak. A majorityvoted to delete the legislativeproposal.

However, delegates passedpolicy supporting a voluntaryanimal identification and trac-ing program that allows USDAand states to access necessarydata during animal healthemergencies or natural disas-ters, requires confidentiality

for livestock and equine own-ers, provides federal fundingfor a standardized system, iscost effective and not an eco-nomic burden to producers,and enhances confidenceabout U.S. products in exportand domestic markets.

Several Farm Bureau dele-gates raised concerns thatmandatory registration wouldbe a burden on 4-H and FFA

members, especially those withone or two animals.

Other delegates urged sup-port to require livestockpremise registration to allowpotential tracing for animaldisease.

Roy Plote, a DeKalb CountyFarm Bureau delegate, pointedout the difference between avoluntary animal identificationsystem and a mandatory

premise registration system:“The premise ID would be amandatory registration of alocation. The animal ID — thechip in the ear — would bevoluntary. They are two differ-ent things.”

“It’s important to make aneffort to register your premis-es. It takes five minutes andcosts nothing. The part thatcosts (animal ID) was madevoluntary,” added Pat Bane, aMcLean County Farm Bureaudelegate.

“I’m not in favor of manda-tory premise ID,” said Ran-dolph County Farm BureauPresident Jack McCormick.“We should give producers achoice.” In the end, delegatesvoted to support voluntarypremise registration.

In related animal policy, del-egates voted to support legis-lation that would prohibit thefiling of a nuisance lawsuituntil after a newly constructedlivestock operation has beenpopulated and is operating,and to seek legislation thatwould classify equine as live-stock.

Delegates voted to encour-age the Illinois Council forFood and AgriculturalResearch (C-FAR) to imple-

See Animal ID, page 3

BY MARTIN ROSSFarmWeek

The U.S. Senate Fridayappeared poised to approve abipartisan compromise thatprovides short-term tax relieffor Illinois farm heirs, contin-ued momentum for theethanol industry, and a chancefor the biodiesel industry toregain its footing.

But concerns remainwhether the House will signoff on the plan, which includesa two-year, $5-million individ-ual-$10-million-per-coupleestate tax exemption with a 35percent tax rate. Also includedis a year’s extension of 45-cent-per-gallon ethanol and

$1-per-gallon biodiesel fuelblenders tax credits.

The Senate is expected earlythis week to approve the Oba-ma-endorsed plan, which alsoincludes a year’s extension offederal unemployment bene-fits.

The House then must OKthe bill and submit anychanges for a final Senate vote,but House Democrats angeredby the president’s agreement totax cuts at all income levelshave pledged their opposition.

Jan. 1 marks expiration ofBush-era tax cuts, the potentialreturn of the estate tax with alow $1 million individualexemption and expiration of

the corn ethanol credit. The biodiesel credit expired

last January; the tax compro-mise restores it on a retroactivebasis, enabling fuel suppliers toseek credits for 2010 as well as2011 purchases.

Illinois Farm Bureau Presi-dent Philip Nelson applaudedthe estate tax deal, which hesaid “rightfully recognizes theneed to allow farm families totransfer their assets from onegeneration to the next.”

Alicia Clancy, whose Renew-able Energy Group (REG)runs a Danville biodiesel plant,was hopeful reinstatement ofthe $1 biodiesel credit would“offer stability, offer pre-

dictability for at least the next12 1/2 to 13 months.”

“When there’s uncertaintyaround what your product’sgoing to cost, it’s difficult forpetroleum distributors to makelarge purchasing decisions,”Clancy told FarmWeek.

“We believe that upon rein-statement of the biodiesel taxcredit, paired with the (federal)renewable fuels standard(RFS2), Renewable EnergyGroup would be very bullishon the 2011 market space.

“The RFS2 creates a volumefloor, and the biodieselblenders tax credit helps tomake the product competitiveso that petroleum industry

Compromise would up estate exemption, boost biofuelsleaders are able to (usebiodiesel) within their businessmodel.”

REG is pleased with theU.S. Environmental ProtectionAgency’s (EPA) new RFS2requirement for 800 milliongallons of biodiesel use in2011, she said.

In addition, biodiesel is theonly currently available major“advanced biofuel,” and EPAadvanced biofuels targets offer“an additional market oppor-tunity” in tandem with taxincentives, Clancy said.

Judd Hulting, spokesmanwith Annawan ethanol pro-

See Compromise, page 4

Young Leaders during the Illinois Farm Bureauannual meeting in St. Louis hosted penny wars thatraised $7,224.

The record amount was given to the winners of thisyear’s penny wars, District 11, who will disperse thefunds to local food pantries.

District 11 collected $1,485, which was just enoughto edge out District 15’s donation of $1,357.

Penny wars are held each year at annual meeting. Acollection jar for each IFB district is placed on a tableat the exhibit hall so meeting attendees can make dona-tions at any time during the event.

The penny wars contest was just part of YoungLeaders’ overall effort to help end hunger in Illinois.Young Leaders so far this year through the Harvest forAll program donated 411,499 pounds of food,$115,765, and 1,959 volunteer hours to local foodpantries.

***Ag literacy efforts received an early Christmas gift

from attendees of the IFB annual meeting last week.Several activities helped the IAA Foundation raisemoney to support the Illinois Agriculture in the Class-room (IAITC) program. Early estimates indicate thisyear’s fundraising will total more than $40,000 duringthe three-day event.

The first events, a live auction and an ice creamsocial, raised $12,795 and nearly $1,000, respectively.

A silent auction of 150 items of donated goods andservices raised more than $14,000.

A trivia contest generated more than $11,500 forIAITC. Teams from Winnebago County Farm Bureauand the IFB governmental affairs and commoditiesdivision won the competition in their respective cate-gories.

“The IAA Foundation is grateful for all the gener-ous support that was shown this year,” said SusanMoore, foundation director. “Members of our FarmBureau family truly understand the importance of sup-porting the Illinois Agriculture in the Classroom pro-gram and showed it this year through extraordinarygiving.”

***The IFB annual meeting of 2010 is finished, but

the images of speakers, delegate debate, the trivia con-test, and the auctions won’t soon fade. To view addi-tional images from the meeting in St. Louis, visit IFBphotographer Ken Kashian’s online photo gallery.

Go to {www.ilfb.org} and click on the Ken Kashianphoto gallery icon on the left side.

FarmWeek Monday, December 13, 2010

(ISSN0197-6680)

Vol. 38 No. 49 December 13, 2010

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

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© 2010 Illinois Agricultural Association

STAFFEditor

Dave McClelland ([email protected])Legislative Affairs Editor

Kay Shipman ([email protected])Agricultural Affairs Editor

Martin Ross ([email protected])Senior Commodities Editor

Daniel Grant ([email protected])Editorial Assistant

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ANNUAL MEETING

OH BABY!

Ten-month-old Nathan Zwilling enjoys the ice cream spooned up by his mom, Paula Zwilling, Fisher,a Champaign County Farm Bureau member, during the ice cream social at the Illinois Farm Bureauannual meeting last week in St. Louis. Proceeds for the ice cream, donated by Prairie Farms DairyInc., raised money to support Illinois Agriculture in the Classroom. (Photo by Ken Kashian)

Three new directors elected to IFB boardThree men from the central

part of the state were electedto two-year terms on the Illi-nois Farm Bureau Board ofDirectors at last week’s annualmeeting in St. Louis.

They are: Randy J. Poskinof Ashkum in Iroquois Coun-ty, David L. Serven of St.Augustine in Knox County,and Brad Temple of Serena inLaSalle County.

They replace, respectively,retiring directors Kent Schle-ich of Fairview in FultonCounty, Bill Olthoff of Bour-bonnais in Kankakee County,and Jim Schielein of Dixon inLee County. Each had servedtheir allotted 10 years on theboard.

Poskin, 55, will representDistrict 6, which encompassesLivingston, Kankakee, Ford,and Iroquois counties.

He served as president ofthe Ford-Iroquois County

Farm Bureaufrom 2001until this year.He is presi-dent of theTri-CentralCo-op Boardof Directorsand is a mem-ber of theAshkum Lions

Club, in which he is a past dis-trict governor and earned aMelvin Jones Fellowship.

A graduate of KankakeeCounty College in 1975,Poskin earned a bachelor’sdegree in agriculture from theUniversity of Illinois in 1977.

Poskin and his wife, Mona,have two children and attendAssumption Blessed Virgin

Mary Catholic Church inAshkum.

Serven, 43, will representDistrict 8, which encompassesKnox, Warren, Peoria, Hen-derson, and Fulton counties.He farms 1,500 acres of cornand soybeans and producescustom feed for dairy heifers.

A past president of KnoxCounty Farm Bureau and aboard member since 1996,Serven was the IFB state

Young LeaderAchievementwinner in2003, hascompleted theIFB Agricul-tural Leadersof Tomorrow(ALOT) pro-gram, andearned an

FFA American FarmerDegree. He holds a bachelor’sdegree in agricultural produc-tion from Illinois State Uni-versity.

He also is a graduate of theIllinois Ag Leadership Pro-gram and went to China in2001 as part of IFB’s firstMarket Study Tour.

Serven currently serves onthe Knox County Board, theRiverland FS board, theTompkins State Bank board,and the Abingdon and Bush-nell-Prairie City school dis-tricts.

He and his wife, Barb, havethree children, Perry, 5; Anna,3; and Timothy, 1.

Temple, 46, will representDistrict 4, which includesBureau, Lee, and LaSalle coun-ties.

He is past president of the

LaSalle County Farm Bureau,a member of the IFB Live-stock and Dairy GrassrootsIssue Team, and completedthe IFB ALOT program in1996. He went to China in

2009 as partof the IFBMarket StudyTour. Agraduate ofJoliet JuniorCollege in1986 with adegree in agri-cultural pro-duction and

management, Temple was aDuPont Young Leader Awardwinner in 1996 and an IFBDiscussion Meet winner thatsame year.

He serves on the adminis-trative board of the SerenaUnited Methodist Church andhe and his wife, Kara, havetwo children.

Re-elected to two-yearterms on the board were even-district directors Chuck Caw-ley of Rochelle in Ogle Coun-ty, Dale Hadden of Jack-sonville in Morgan County,Chris Hausman of Pesotum inChampaign County, SteveHosselton of Louisville inClay County, DarrylBrinkmann of Carlyle in Clin-ton County, and Jim Andersonof Thompsonville inWilliamson County.

Advisory members servingon the board are Sean Ariansof Woodford County, the stateYoung Leader Committeechairman, and RichardHentschel of Lemont, presi-dent of the Illinois ExtensionAgricultural Association.

Randy Poskin

David Serven

Brad Temple

ANNUAL MEETING

Monday, December 13, 2010 FarmWeek

Continued from page 1ment the concepts of theDavid A. Wirsing Food Ani-mal Institute Act to reviewand disseminate unbiasedinformation about allaspects of the state’s foodanimal industry.

However, state fundingwas eliminated for C-FAR inthe current budget, and the

organization is reorganizing.Delegates also favored

development of a posternotifying employees thatuse of audio, photographic,and video devices of anykind is prohibited in theworkplace.

They also voted to sup-port efforts to conduct anIllinois equine census.

Animal ID

BY DANIEL GRANTFarmWeek

The agriculture industry is at a “crossroads”as many people outside of ag, such as activistsand regulators, are trying to influence how farm-ers conduct their business, Philip Nelson, presi-dent of the Illinois Farm Bureau, said during hiskeynote address at the IFB annual meeting in St.Louis.

Nelson, delivering hisspeech extemporaneously,urged IFB members to telltheir side of the story to con-sumers, lawmakers, and oth-ers in a grassroots movementto educate the generalpublic about food productionand improve the image ofAmerica’s farmers.

“Consumers really doappreciate what farmers do,”Nelson said. “But they don’tknow much about agricul-ture” based on research donewith the Farmer Image Cam-paign conducted by IFB andthe state’s major commodityorganizations.

Some of the recent researchfound there’s a growing perception that most ofthe food in the U.S. is produced by corporatelyowned, industrial-scale agriculture.

“This is one of the misconceptions we need toaddress,” Nelson said. “We know family farmersare not going by the wayside. In fact, 94 percentof farms in Illinois are family run.”

IFB and the American Farm Bureau Federationin response joined the U.S. Farmers and RanchersAlliance, which has a goal of raising $20 millionto $30 million that will be used to educate con-sumers about food production.

Nelson also encouraged IFB members, whichthis year totaled a record-high 426,043, to getinvolved in the Farmers Opening Our Doors(FOOD) movement, consumer events, use socialmedia, and train school children to help close theinformation gap and improve the image of farm-ers.

He noted the Illinois Ag in the Classroom pro-gram already has touched the lives of more than400,000 children in Illinois.

Another challenge to production agriculture isthe threat of increased regulations. Nelson fearsthe possibility of everything from dust permitsto the elimination of the popular herbicideatrazine could hinder farmers’ ability to producefood.

“I believe a tsunami (in the form of regulatorychallenges) is headed toward agriculture likewe’ve never seen before,” he said.

Nelson also called on Congress to eitherrepeal the “death tax” or increase the exemptionlevels. If Congress fails to act on current com-promise tax extension proposals, the estate taxon Jan. 1 would revert back to an exemption lev-

el of $1 million per person and a 55 percent taxrate.

“It’s time for Congress to address this to pro-tect farms and small businesses in this country,”said Nelson.

He also called on Congress to move forwardwith a trade agenda to reach President Obama’sgoal of doubling U.S. exports in the next fiveyears.

Agriculture has been a bright spot of theeconomy as it continues to generate a surplusdespite other economic woes of the U.S. (a fed-eral deficit of about $17 trillion and a 9.8 per-cent unemployment rate) he noted.

At the state level, Nelson believes it is crucialto address the fiscal challenge of a $12.5-billiondeficit and improve a business climate that hascaused the loss of 500,000 manufacturing jobsin the past decade.

“We are at a defining moment in the State ofIllinois,” he said. “We must address this fiscalchallenge.”

Nelson believes IFB members can be part ofthe solutions in the state and nationwide. Butthey must be proactive, he said.

“With the challenges, we see opportunities. Ibelieve we have a bright future,” Nelson con-cluded. “But we need all of you (IFB members)working together to accomplish that.”

KAY SHIPMANFarmWeek

Illinois Farm Bureau andother agricultural organiza-tions have raised concernsabout an Illinois Environmen-tal Protection Agency’s (IEPA)proposed permit for pesticideapplications.

On Nov. 11, IEPA issuedthe draft permit and set a Dec.13 deadline for comments.Last week, IFB and other aggroups requested an extensionof the comment period. IEPAwas considering the request,but no decision wasannounced officially byFarmWeek presstime Friday.

As proposed, a general stateNational Pollution DischargeElimination System (NPDES)

permit would cover pesticideapplications for mosquito andother insect pest control, weedand algae control, aquatic nui-sance animal control, forestedarea pest control, and otherpesticide uses, according toIEPA.

The general NPDES permitrelates to the Clean Water Actand pollutant discharges intowaters of the U.S. The U.S.Environmental ProtectionAgency (EPA) also is develop-ing a general NPDES permitfor use in the three states overwhich it has authority; howev-er, Illinois is not one of those.

“There are lots of problemswith (EPA’s) general NPDESpermit,” Douglas Nelson,executive vice president and

general counsel with CropLifeAmerica, told FarmWeek atthe recent AGMasters Confer-ence.

EPA made its latest changesto its draft permit on Nov. 22,Nelson said, adding, “This is awork in progress.”

The general Illinois permitwas based on the original EPAdraft permit, according to Nel-son. “It is important to keeptrack of the Illinois generalpermit so it would mirror theUSEPA general permitchanges,” Nelson said.

Information about the Illi-nois draft general NPDES per-mit is online at {www.epa.state.il.us/publicnotices/npdesnotices.html#pesticide-gener-al-permit}.

IFB, ag groups to comment on state pesticide permit

Nelson: Ag at crossroads; farmers must act FB delegates seek to rein in U.S. EPABY MARTIN ROSSFarmWeek

Illinois Farm Bureau farmerdelegates last week sought tostem what IFB President PhilipNelson called “the regulatoryfront coming at us,” poweredlargely by the U.S. Environmen-tal Protection Agency (EPA).

In a strongly worded resolu-tion at last week’s IFB annualmeeting in St. Louis, delegatescalled on Congress to conduct“oversight” hearings on EPA’s“regulatory overreach,” pass leg-islation to strip the agency ofgreenhouse gas (GHG) regulato-ry authority, trim EPA’s annualbudget, and, according to Nel-son, generally “rein this agencyin.”

New policy seeks to haveEPA collaborate with USDA onconservation and air/water regu-lations impacting agriculture.

On the heels of IFB’s actions,incoming U.S. House Ag Com-mittee Chairman Frank Lucas(R-Okla.) promised oversighthearings, citing EPA’s “fondnessfor overreaching regulations thatdefy congressional intent andthreaten production agriculture.”

“We believe (EPA’s) going faroutside the intent of the law andthe intent of Congress,” Nelsonsaid.

Last week, ag groups chal-lenged data being used by EPAto set nutrient “pollution” limitsin the eastern Chesapeake Baywatershed. Farm Bureau andothers asked EPA to delay set-ting “pollution loads” for region-al farms until it can address dif-ferences between EPA andUSDA land use/acreage esti-mates and assumptions aboutconservation practices.

GROWMARK regulatoryspecialist Chuck Spencer seesChesapeake regulations as “amodel that would be copied andreplicated across the country if(EPA officials) had their way.”

Add developments such asPresident Obama’s recent execu-tive order creating a Gulf CoastEcosystem Restoration TaskForce, and “you can see the wag-ons starting to circle around theMississippi River Basin,” Spencertold FarmWeek.

EPA-proposed pesticide per-mitting and nutrient manage-ment plans and continuedthreats to future atrazine use

raise further concerns about pro-duction in that river basin.

Meanwhile, the U.S. SupremeCourt has agreed to hear argu-ments by major electric powercompanies challenging a NewYork court’s ruling that they canbe sued to curb carbon dioxideemissions.

The lower court rulingenabled states led by Connecti-cut, New York, and California toproceed with CO2 “nuisance”claims targeting power plantsoutside their borders until EPAgreenhouse regulations kick in.

An additional case now at theappeals court level pits Mississip-pi residents against refiners,charging industry GHG emis-sions contributed to the severityof Hurricane Katrina. The utili-ty/refiner cases could open thedoor to lawsuits against farmersor arm area groups seeking toblock large livestock operations.American Farm Bureau Federa-tion analyst Rick Krause said hefears the prospect of “letting thejudges decide greenhouse gaspolicy” to be enforced by EPA.

Further, DeWitt County IFBdelegate Tom Hieronymus notedpotential new EPA air standardsthat could regulate “the dustcoming off our combines.” AnEPA regulatory assessment isexpected this month, with draftrules possible by February.

Those rules could tightencontrols related to livestock,crops, or even rural roads. Ari-zona has developed its own“best management practices,”including proposals to limit traf-fic on unpaved roads to 15 mph.Krause sees EPA rules potential-ly limiting allowable hours offieldwork.

Likely EPA oversight by anew Republican House couldspur a regulatory slowdown orreversal, he told FarmWeek.Also buoying hopes was therecent unexpected write-in re-election of Sen. Lisa Murkowski,an Alaskan Republican who hasworked to block EPA green-house authority.

“I believe we’re going to see apushback,” IFB’s Nelson sug-gested. “I think we need to strikewhile the iron is hot, when thenew Congress is seated, to try toget some discipline in place withthis particular agency.”

Illinois Farm Bureau President Philip Nelson

IFB on ag policyIn addition to its central priorities for 2012 farm programs

(see accompanying story), Illinois Farm Bureau delegates also:• Supported permanent funding of the supplemental rev-

enue assistance standing disaster program (SURE) with “amore timely and responsive payment schedule.” SURE, creat-ed in the 2008 farm bill, was not included in the federal agbudget baseline, and funding tentatively expires next year.

• Sought a continued commodity loan program. New IFBpolicy recommends raising loan rates for current programcommodities above 2008 farm bill levels, with repaymentscredited back to the federal Commodity Credit Corp. “tomaintain budget neutrality.”

• Recommended offering the opportunity for farmers to“buy up” added individual revenue protection.

• Urged consideration of payments or programs to reward“socially or environmentally beneficial” producer activities.

• Supported allowing farms that have not been participatingin farm programs and currently ineligible for program benefitsto establish a program base and enroll in future programs.

• Supported development of new federal dairy policyemphasizing risk management tools that protect against majorswings in feed or milk prices, as long as it includes no quota-based marketing concepts or state or regional dairy pricingcompacts.

IFB Farm Policy Task Force (FPTF) Chairman DarrylBrinkmann of Carlyle anticipates “significant” cross-regionaldiscussion of dairy policy at the American Farm Bureau Fed-eration’s (AFBF) January delegate debate in Atlanta, Ga.

FPTF recommendations were largely in response to theNational Milk Producers Federation’s Foundation for theFuture plan, which features a proposed producer margin pro-tection program.

“For more than a decade, we have dissented from AFBFdairy policy due to its dairy compact language, which sets uptrade barriers for regions within our own country,” Brinkmanntold members. “That’s something our members have opposedfor a long time.” — Martin Ross

ANNUAL MEETING


Continued from page 1ducer Patriot Renewable Fuels, argued ethanol credit extensionwould provide retailers the “assurance” necessary to invest in“blender pumps” that offer multiple fuel choices.

Illinois Corn Growers Association President Jim Reed said hewas “thrilled to death” by credit prospects, arguing extensionwould give the industry time “to talk about how we move theinfrastructure to support ethanol forward from a year from nowon.”

“If there is going to be a loss of the (credit) in the future,then we probably need to start looking at what we can do formore blender pumps, a larger flex-fuel vehicle fleet in the UnitedStates, and other things to improve accessibility to ethanol,”Reed maintained.

But while the Monticello grower sees $5 million as a reason-able estate tax threshold, he was disappointed lawmakers haveproposed a mere “two-year Band-Aid” which prevents farmfamilies from putting permanent estate plans in place. He hopesthe compromise plan will provide “a beginning point for discus-sion of a more permanent solution.”

Compromise

Delegates keep ag policy options openBY MARTIN ROSSFarmWeek

Illinois Farm Bureau votingdelegates balanced the politi-cal realities of ag policydebate with the need fornegotiating flexibility, shapinga proposed farm bill prioritylist into a more generalizedpolicy agenda.

In January, IFB will askFarm Bureau membersnationwide to support a trade-compliant 2012 farm bill thatoffers revenue protection andpreserves existing commodityprograms.

Amid lengthy discussionover the merits of producerdirect payments vs. risk man-agement-”safety net” programs,members gave equal weight tocontinuation of direct pay-ments at 2008 levels, increasedcoverage levels for the averagecrop revenue election (ACRE)program, and higher federalcrop insurance subsidies.

The original farm policyproposal identified direct pay-ments as the organization’sfirst priority, followed in orderby ACRE improvements andincreased insurance subsidies.

But Pulaski County growerKen Taake argued “in ourarea, direct payments don’thelp us much,” and unsuccess-fully urged moving the insur-ance “security net” to the topof the list, with direct pay-ments trailing ACRE.

Jefferson County’s RickCorners questioned the needfor direct payments in the cur-rent grain price environment,and suggested crop insuranceis more responsive to “realrevenue losses.”

At the same time, whileACRE has offered significantpayouts to Illinois corn pro-ducers, farmers from North-ern Illinois’ DeKalb County toSouthern Illinois’ WashingtonCounty noted lackluster enroll-ment to date in the relativelynew revenue protection pro-gram.

However, IFB PresidentPhilip Nelson said 2011 con-gressional budget reconcilia-tion debate likely will be a“dictating force” in 2012 farmspending.

With dollars limited, OgleCounty’s Brian Duncan tolddelegates “We need to speaknationally with one voice,”arguing direct payments are“the ballgame” for influentialsouthern U.S. farmers.

As Farm Bureau policydebate looms at the AmericanFarm Bureau Federation annu-al meeting in January, Nelsonsaid individual states are “allover the board” on direct pay-ments.

Iowa Farm Bureau supportsrelying less on governmentpayments and more on themarket, as well as providingmore for insurance and “rev-

enue assurance.” Oklahomaproducers urge retention ofdirect payments.

Direct payments currentlyfall within the World TradeOrganization’s “green box”category of uncapped, non-trade-distorting ag supportsand carry stringent conserva-tion compliance requirements,Duncan said.

Without direct payments,“We could see a lot of theprogress we’ve made in con-servation go backward,” hewarned.

And while EffinghamCounty’s Norbert Soltwedelmaintained some within thenon-farm public view directpayments as “welfare” distrib-uted “without regard forincome or the need for thepayment,” Duncan notedannual direct payments arecapped while insurance pay-ments are not.

Incoming U.S. House AgCommittee Chairman FrankLucas (R-Okla.) “probablyleans toward keeping directpayments, but we don’t know,”Nelson said.

Duncan warned FarmBureau “might not get any-thing in return” for surrender-ing direct payments, givenCongress’ evolving “politicaldynamic.”

“I don’t think you can give upsomething to begin the negotia-tions,” Duncan maintained.

Budget direction ‘180 degrees’ from global pushFederal deficit concerns

present “a very tight budgetconstraint” for ag lawmakerscrafting a new farm bill,economist Robert Thomp-son told FarmWeek at lastweek’s Illinois Farm Bureauannual meeting.

Within thatenvironment,agriculturecan’t affordcontinuedoverlaps inloan deficien-cy and coun-tercyclicalpayment pro-grams, crop

insurance subsidies, and agdisaster assistance, Thomp-son said.

The National Commissionon Fiscal Responsibility andReform’s newly releasedreport targets cuts in directpayments, the already bud-get-battered ConservationSecurity Program, and theexport Market AssistanceProgram as prospective agcontributions to deficitreduction.

At the same time, World

is, ‘When farmers could bebuying price insurance, whyshould the public provide itto them free?’

“We have a very capital-intensive sector that’s mainlydebt-financed. Whether itcomes from a drop in priceor a drop in yields, cata-strophic drops in revenue

put a farm at risk. “If I were trying to make

the case for farm programs,I would have some kind ofrevenue insurance conceptand argue that it’s in thepublic’s interest to haveless risk of (farm) financialfailure,” Thompson said. —Martin Ross

Trade Organization (WTO)negotiations continue tomove falteringly along.Thompson said efforts tomove from commodity-spe-cific subsidies to more non-commodity-linked direct pay-ments have dominated agtrade talks over the last 25years.

“Most of the discussion ofhow we’re going to savemoney in commodity pro-grams is oriented aroundmoving money out of directpayments and into specificcommodity supports,” theformer IFB-endowed Univer-sity of Illinois Gardner Chairfor Agricultural Policy noted.

“That’s going to be a fun-damental conflict. And itconflicts 180 degrees withwhat the United States hasbeen advocating for the last25 years in the WTO.”

WTO pressure “is defi-nitely not going to let up,”largely because several keynations already have decou-pled farm payments, Thomp-son said.

He noted the EuropeanUnion (EU) pooled previ-

ously commodity-specificsupports to deliver lumppayments to all farmers“regardless of what theygrow on the land,” inexchange for conservationcompliance.

The EU is continuing todecouple supports: Remain-ing dairy quotas and subsi-dies for so-called “sensitive”commodities are in thecrosshairs. European officialssoon may put a cork in alongstanding wine price sup-port program.

Meanwhile, U.S. dairyinterests have floated a newconcept: “margin protec-tion,” which would helpproducers deal with highenergy, feed, or other inputcosts. Thompson cited con-cerns that the conceptamounts to “guaranteeingprofitability.”

“We have some prettysophisticated price insuranceconcepts with puts and calls,and in Chicago, we have theworld’s center for marketingwith those price risk-manage-ment tools,” he said. “Thequestion a lot of people raise

Robert Thompson

ANNUAL MEETING


TOP BID FOR IAA FOUNDATION

Jamie Adams, left, Stillman Valley, an Ogle County Farm Bureau member, accepts congratulationsfrom Illinois Farm Bureau President Philip Nelson for submitting the winning bid for a John Deere pre-cision farming and mapping tool donated by Deere Co. and Sloan Implement. Held during the IllinoisFarm Bureau annual meeting last week in St. Louis, the live auction raised money for ag literacy andthe IAA Foundation. (Photo by Ken Kashian)

FB delegates tackle weighty state, local issuesBY KAY SHIPMANFarmWeek

County Farm Bureau dele-gates at the Illinois FarmBureau annual meeting lastweek in St. Louis didn’t shyaway from difficult issuesranging from the state’s finan-cial troubles to farmers’access to local roads.

“Illinois government is interrible shape,” said Cham-paign County Farm Bureaudelegate Lin Warfel. “We needto quit doing the status quoand do something strong.”

Warfel spoke in support ofrequiring a state forensicaudit. A forensic audit is onethat uses accounting methodsto track and collect evidence,usually for investigation andprosecution of criminal acts,such as embezzlement orfraud, according to a businessdictionary.

Brian Duncan, Ogle Coun-ty, noted IFB policy support-ing a “stringent audit” wouldnot prevent the state fromconducting a more in-depthexamination.

“A forensic audit can bevery expensive,” Duncanadded. “Where would theState of Illinois get the mon-ey to pay for an expensiveaudit?”

Delegates passed a propos-al to support legislation call-ing for a more stringent auditof all state expenditures, butdid not support an attempt torequire a forensic audit.

THE POTENTIALLOSS of road access byexisting farm operations ledcounty Farm Bureau delegatesto support new state and localgovernment policy.

Delegates voted to supportrequiring all local roadauthorities who seek to makeany change to an existing roadthat will result in establish-ment of a lower weight limitto develop a plan for ingressand egress to existing live-stock and other agriculturalfacilities that have an estab-lished access to that roadway.

The plan must be function-al, economically feasible, andreasonable with agreement by

both parties.Several delegates ques-

tioned whether the policycould allow one individual tostop a road improvementproject that would benefitothers. “I don’t want to stoplocal authority,” said BobPharis, a Logan County FarmBureau delegate.

Ogle County’s Brian Dun-can explained the problemstems from urban people whomove to farming areas andthen push to have adequategravel roads paved similar to

those in town.Livestock

farmers makelarge invest-ments in theiroperations,Duncan con-tinued.

“We (farm-ers and roadcommission-ers) need toplan to worktogether, and itneeds to bemore than a

handshake agreement.” AN EFFORT to reduce

government costs was themotivation behind new eco-nomic policy. Delegates votedto support privatization ofgovernmental services thatcould provide savings to thetaxpayer and render govern-ment services more economi-cal.

DeWitt County FarmBureau delegate Terry Fergu-son suggested the state gov-ernment could save money inhis county by using localmechanics to service statevehicles used at nearby stateparks and local contractors tobuild a project rather thandepend on mechanics andconstruction crews frommany miles away, as currentlyis required.

“It’s time to change theway we do business in Illi-nois,” Ferguson said.

In other government poli-cy, delegates voted to:

• Support amending theCemetery Oversight Act soprovisions of the law are notoverly burdensome for ceme-teries.

A new state law regulateslarge and small cemeteriesand sets up new licensing andinsurance requirements and

fees; however, the rules thatwould establish the fees havenot been adopted. (See story-below).

• Work with electric andnatural gas suppliers in Illi-nois to evaluate potential loadrequirements for agricultural

The state is implementing a new cemeteryoversight law, although rules have not beenwritten to set related fees, according to an offi-cial with the Illinois Department of Financialand Professional Regulation (IDFPR).

The lack of rules “has not hindered our abil-ity to do oversight, deal with consumers’ ques-tions, have a hotline . . . That all is moving for-ward without the rules. The rules set the fees,”Susan Holder, IDFPR spokesman toldFarmWeek.

The law set up new licensing and insurancerequirements. It also stipulates which cemeteriesare entirely or partially exempt from the regula-tions. But any cemetery with a care fund, nomatter the size, must comply with all the rules,according to the Illinois Cemetery and FuneralHome Association (ICFHA).

Last week, county Farm Bureau delegatesvoted in favor of new policy to support anamendment to ensure the law’s provisions arenot overly burdensome.

As a requirement of the new law, cemeteryofficials are entering burials into a state onlinedatabase, Holder said.

The ICFHA is concerned that some ceme-tery governing boards will be unable to complywith requirements of the law, said Vickie Hand

of the association.The new provisions include licensing of

cemetery authorities and managers, establish-ment of an oversight database, mandatoryreports, and required maintenance and records.

The legislative Joint Committee on Adminis-trative Rules (JCAR) considered but did notadopt draft rules. JCAR members wanted thelegislature to consider concerns related to thenew law, but that didn’t happen during the vetosession, Holder said.

She was not sure if the General Assemblywill take up the matter during the scheduledJanuary veto session and did not know whenthe fees will be set.

Holder advised small cemetery governingboards “to comply with the law.”

“If they have questions, they can call thehotline 888-756-8331,” she added. The agency’swebsite with information about the law andanswers to common questions is{www.idfpr.com/cemetery/cemeteryoversight.asp}.

ICFHA has obtained a legal opinion fromHarvey Lapin, its attorney, and is collectinginformation at {www.icfha.org}. The ICFHAalso is advising cemetery boards to consult theirown attorneys. — Kay Shipman

Controversial cemetery law implemented

‘Illinois government is in terrible shape.’

— Lin WarfelChampaign County Farm Bureau delegate

operations and develop along-range plan to upgradeexisting infrastructure to han-dle future demand loads.

• Support maintaining theIllinois Department of Agri-culture as a stand-alone enti-ty.

• Support development ofa centralized informationresource to keep membersinformed on key issues ofpublic concern so they canrespond to those concerns intheir day-to-day contacts.

ANNUAL MEETING


IFB supports new broad-based ‘image’ effortBY MARTIN ROSSFarmWeek

Illinois Farm Bureau dele-gates last week supportedefforts to reach out to newinterests in search of animproved agricultural image,despite some member con-cerns about who might reachback.

Following extended debate,delegates approved new policybacking creation of a “stand-alone” not-for-profit ag“image organization” that

would unitefarmers, con-sumers, andbusinessesunder a “com-mon cause.”

The imageimprovementgroup wouldaddress “neg-ative advertis-

ing and promotional effortsthat are impacting our indus-try,” the policy states.

IFB Resolution CommitteeAg Production/National IssueSubcommittee Chairman PaulRasmussen suggested the new

ey for what we want.”“There are always risks

when you start an organizationlike this,” Bureau County’sRob Sharkey said. “But I thinkthe potential success of this

would outweigh the risks.“We do have to acknowl-

edge we’re losing this battle.(Anti-ag activists) have moremoney, and they have the sup-port of the media.”

group might target broad-based individuals “who aremaybe one generation, twogenerations away from thefarm.”

“We have those people scat-tered throughout our society,whether they’re in science, aca-demics, business, or are justgeneral consumers,” Ras-mussen said.

Non-farm interests couldhelp educate consumers “whodon’t trust ag organizations allthat well” to impart accurateor impartial information, hesaid.

Initially, “if we are the oneswho initiate the idea, then wewould be the ones who pickout the ones who serve,” Ras-mussen suggested.

Those interests then wouldprovide initial funding for theorganization, he said.

Some delegates, such asCarroll County’s Leroy Getz,were concerned a new, wide-ranging group “could easilyget out of hand,” possiblyopening the door to participa-tion by activist groups thatoppose modern ag practices.

“What’s to say these con-sumers are not going to beanti-agriculture?” he posed.

The Humane Society of theU.S. (HSUS) already “uses abroad network and a variety ofways of funding itself ” and itsattacks on the livestock indus-try, Rasmussen said.

As a result, HSUS “accumu-lates millions and millions andmillions of dollars.” He saidhe believes ag and allied inter-ests “could follow a similartemplate.”

If even a mere 5 percent ofthe state’s population con-tributed $20 per year throughmembership in the group, thatcould generate $300 million“to fight the attack ads thatdrive us crazy in agriculture,”Rasmussen said.

Sangamon County’s LarryBeaty, who supported the pro-posed new group, arguedHSUS has “created a terriblelook for agriculture.”

LaSalle County’s MontyWhipple stressed the need“to stand up and be count-ed,” even if that means farm-ers must “kick in some mon-

National ag groups joiningagainst ‘negative messaging’

As Illinois Farm Bureau envisions a broad-based effort toimprove ag image (see accompanying story), American Farm

Bureau Federation President Bob Stallmansees the nation’s producer groups joiningforces to “inoculate consumers.”

Stallman noted a variety of individualgroups has attempted to counter “negativemessaging” about modern agriculture.

Corn growers recently plastered Washing-ton subways, airports, and radio waves withads linking real producer faces to modernagriculture, and California dairymen are hit-ting prime time TV with personal testimoni-

als about their sector’s diverse, grassroots base. But Stallman argued those campaigns have not proven “of

sufficient scope or duration to really move the needle in termsof consumer perception.” Therefore, nearly two dozen groupshave pooled resources to form the U.S. Farmers and RanchersAlliance.

The alliance includes representatives of every major U.S. com-modity and regional interests ranging from southern peanut grow-ers to the Western Growers Association. Stallman, who chairs thealliance’s Executive Committee, said the group will embark on athree- to five-year consumer education campaign emphasizingproduction benefits and countering “activist-based messages.”

“This is the first time all of production agriculture got togetherunder one roof, in one room, and decided to cooperate on a majoreffort,” Stallman said in an RFD Radio-FarmWeek interview.

“Those of us in production agriculture are frankly dismayedand, to some extent, worried about the critics of modern pro-duction agriculture who are out there, who have the books andthe magazine articles and the newspaper editorials. They’re real-ly sort of trashing the way we produce food, fiber, and fuel inthis country.”

In an effort to develop winning strategies, alliance leadershave surveyed previous and existing awareness campaigns “tolook at what’s successful” and gather data. The group now must“scale up” with national messages that can be broadcast over anextended period.

The alliance hopes to begin public efforts during the firstquarter of 2011.

Stallman noted continued consumer confusion over suchissues as the perception “ ‘family farm’ vs. ‘corporate farm,’ ”despite the fact that 94 percent of U.S. operations are family-operated “regardless of their legal structure.”

While the alliance will not be involved in policy advocacy, hepointed out congressional debate over ag policy, energy, andrelated issues and state referenda affecting producers often are“driven by a lot of misperception.”

Alliance efforts thus may be able to help farmers foster “abetter environment with voters,” Stallman said. — Martin Ross

FB delegates debate,but don’t alter labor policyBY KAY SHIPMANFarmWeek

County Farm Bureau delegates debated state unemploymentinsurance regulations but chose not to change Illinois Farm Bureaulabor policy at the IFB annual meeting last week in St. Louis. MikeCampbell, a Madison County Farm Bureau delegate, spokeagainst a proposal to amend state unemployment insurance law toincrease the number of days from 30 to 90 before a worker couldfile an unemployment claim. Campbell urged delegates to voteagainst the proposal because its impact wasn’t clear: “If anything iscertain with this issue, it’s that we’re uncertain (about this policy).”

After lengthy debate about the impact to agricultural employ-ers, delegates voted to delete the policy proposal.

Bob Stallman

Paul Rasmussen

RIGHT ON, TEAM

GOVERNMENT


FCA chair: Reforms not needed for systemBY MARTIN ROSSFarmWeek

Federal Farm Credit Admin-istration (FCA) ChairmanLeland Strom recognizes FarmCredit’s exemption from newfederal banking regulations“comes with a huge obligation.”

But it’s one Strom feels thesystem has shouldered solidlyover the past quarter-centuryand that Farm Credit and FCAcan continue to manage with-out expanded regulation.

The 2,400-page financialreform bill was designed toaddress “problems that hadstemmed from the large banksand the ‘shadow banking’industry and the systemic riskacross the financial sector andthe banking world,” Strom said.While the federal governmenthad to take control of “the big(housing) players in the GSEmarket,” he emphasized theFarm Credit system “was notthe cause of the problem.”

“Agriculture’s been strong,”Strom said. “We look at the1980s period as when agricul-ture had its crisis. As a truearms-length regulator, we havethe tools necessary and havetaken the corrective actions thatwe’ve needed to take.

“We think we’re doing a pru-dent and proper job of managingthe supervision, the safety andsoundness regulation of the FarmCredit system. We realize the sys-tem’s exemption and our exemp-tion as an agency come with ahuge obligation: to get it rightfrom this point going forward.”

American Bankers Associa-tion (ABA) Chairman StephenWilson argued, “We truly did not

address financial reform whenwe left the GSEs out of it.” Andhe believes Farm Credit shouldbe on the table when Congress“makes the tweaks” in 2011.

ABA Executive Vice Presi-dent Floyd Stoner is concernedFarm Credit may seek expandedrural lending authority and“push further into banking terri-tory” through the 2012 farmbill.

In addition, “turf ” issuescontinue to haunt Farm Credit:House and Senate ag commit-tees oversee the ag lender, whileFannie Mae and Freddie Macjurisdiction falls to HouseFinancial Services and SenateBanking committees, and Stonerbelieves GSEs should bebrought under a single regulator.

Wilson nonetheless toldFarmWeek any changes inGSE regulation “must bethoughtful, must be slow, andmust not be so disruptive as tohave a negative effect on oureconomy at a time when oureconomy is so fragile.”

“You don’t want to have theunintended consequence ofclosing down a lot of farms,”he advised.

Many in thecommercialbanking indus-try believe“government-sponsoredenterprises”(GSEs) suchas Fannie Mae,Freddie Mac,and Farm

Credit should have shared innew lender requirementsapproved this year.

Congress is expected nextsession to take up GSE reformfocusing on Fannie and Fred-die, and Strom told FarmWeekFCA is working to ensure Con-gress and the U.S. Treasuryheed “the potential of unin-tended consequences” forFarm Credit and its borrowers.

Those consequences haveglobal dimensions. WhenFarm Credit funds farm loans,it sells debt obligations toinvestors worldwide.

Leland Strom

U.S. Environmental Protec-tion Agency (EPA) Region 5last week reported its enforce-ment work in fiscal year 2010as part of a national EPAannouncement.

Region 5, based inChicago, covers Illinois, Indi-ana, Michigan, Minnesota,Ohio, and Wisconsin.

Last year, EPA Region 5took action that required regu-latory violators to pay more

than $12 million in civil penal-ties and spend an estimated$4.3 billion on pollution con-trol and cleanup. The viola-tions cover a broad range ofenvironmental regulations.

Another $1.8 million will bespent on environmental pro-jects to benefit communitiesand $1 billion was committedto clean up Superfund sites.

Details about the enforce-ment actions concluded in

2010 at more than 4,500 facili-ties is available on an interac-tive map on the EPA website.

The map shows facilities andsites where civil and criminalenforcement actions were tak-en for alleged violations of U.S.environmental laws regulatingair, water, and land pollution.

EPA’s enforcement reportand the accompanying map-ping tool are intended toimprove public access to data.To see the map, go online to{www.epa.gov/compliance/resources/reports/endofyear/eoy2010/index.html}.

EPA Region 5 reports 2010 enforcements

New member elected to IAAA boardJames Sheaffer of Dixon in Lee County last week was elected

an at-large director of the Illinois Agricultural Auditing Associa-tion (IAAA).

The election was conducted during the Illinois Farm Bureauannual meeting in St. Louis and involved the first contested elec-tion in the history of IFB’s oldest affiliate.

Sheaffer defeated John Breedlove of Manito to assume theseat held by Stanley Grebner of Washburn since 2007. Grebnerchose not to seek re-election.

Gary Luth of Allerton in Douglas County was re-electedpresident, a position he has held since 2004.

Ron Fehr of Baldwin (Randolph County) was re-elected vicepresident, and Robert Phelps of Rockton (Winnebago County)was re-elected as secretary and the GROWMARK Inc. represen-tative on the board.

Jim Lynch of McLean was re-elected to the board, and TerryPope of Burnside in Hancock County was re-elected as the IFBrepresentative on the board.

IAAA provides auditing services to agribusinesses throughoutthe Midwest.

Lenders and regulators use its services, and its personnel arerecognized as experts in audit and taxation of agricultural coop-eratives and non-for-profit organizations. It is the only certifiedpublic accountant firm that specializes in agribusiness.

Fulton County Farm Bureau’s trivia team, decked out in their best1960s attire, cheer for a correct answer. Left to right are the coun-ty Farm Bureau president, Randy Farr, Tony Kelsy, and Terri Kelsy.Fulton County’s team won for costumes that best represented thisyear’s theme — Flashback. Winnebago County Farm Bureau’steam won the Farm Bureau leader division of the trivia contest.Money generated by the competition supports ag literacy pro-grams. (Photo by Ken Kashian)

ANNUAL MEETING


BY DANIEL GRANTFarmWeek

Farmers no longer can be content with justbeing producers when it comes to their role inthe food production system.

They also must be marketers, educators, andgood listeners to help bridge the gap betweenfarmers and consumers, according to IllinoisFarm Bureau Young Leaders.

The question of whether American con-sumers adequately appreciate the importance ofU.S.-produced food and if consumers consideragriculture important to security in the futurewas discussed by Young Leaders Caleb May(Edwards County), Katie Pratt (Lee County),Martha Smith (Champaign County), and GrantStrom (Knox County) during the finals of theYoung Leaders Discussion Meet at the IFBannual meeting in St. Louis.

“We have a lot of uninformed consumerswho do not understand the food and fiber sys-tem,” said Strom, the Discussion Meet winner,who noted one in eight people each night goesto bed hungry around the world. “It’s our job tobridge the gap.”

Pratt noted the average American spends just10 percent of his or her income on food eachyear. And, with renewed interest in where foodcomes from, she believes farmers have a goldenopportunity to educate and connect with con-sumers.

“The ‘foodie’ movement is our teachablemoment,” said Pratt, who was the runner-up inthe contest. “It allows us to educate consumersthat we have a safe food supply produced here.”

Smith agreed consumers may not realizefood is relatively cheap in the U.S. compared toother countries because the majority of con-sumers have no connection to production ag.

The number of farms in the U.S. peaked at6.8 million in 1935 when the population totaled127 million people. But the number of farmssince then declined to 2.1 million, according tothe 2007 ag census, while the U.S. populationfrom 2009 to 2010 increased by 2.6 million to acurrent total of 308 million people.

“There are not a lot of consumers who thinkfood is cheap right now because they don’tknow any better,” Smith said.

May suggested IFB take a leadership role inaddressing the growing disconnect betweenfarmers and consumers and to clear up miscon-ceptions about the industry.

“The U.S. is very secure when it comes tofood but maybe not everybody appreciates U.S.-produced food,” May said. “That’s where FarmBureau needs to take a leadership role to edu-cate consumers.”

Food security could become more of anissue in the future as the world population isprojected to peak in 2050 (at 9.1 billion people),Strom added.

Young Leaders: Today’s farmersmust bridge gap with consumers

MEMBERSHIP & FELLOWSHIP

Prairie Farms Dairy Inc. Chief Executive Officer Ed Mullins, right,serves a scoop of ice cream donated by Prairie Farms to AndyPratt, a Lee County Farm Bureau member, during the ice cream so-cial at the Illinois Farm Bureau annual meeting last week in St.Louis. Donations for the frosty treats help support Illinois Agricul-ture in the Classroom.

Sean Arians, front left, of Woodford County was selected chair-man of the Illinois Farm Bureau Young Leader Committee at lastweek’s annual meeting in St. Louis. He will be assisted in 2011 by,front right, Darrin Storm (Shelby County), vice chairman; backrow, left to right, Bryan Stevens (Hancock County), secretary; AlanBailey (Sangamon County), chairman of the Education and Re-cruitment Subcommittee; Todd VerHeecke (Henry County), chair-man of the Governmental Affairs and Commodities Subcommittee;and Monica Stevens (Knox County), chairman of the AchievementSubcommittee.

Schuyler County Farm Bureau member Sandy Prather, far right,tutors her youthful assistants on how to call out bids during the liveauction at the Illinois Farm Bureau annual meeting last week in St.Louis. From left are 4-H youth representatives Sara Martin and LizHarfst, Illinois FFA Treasurer Jeffrey Barnes, Illinois FFA ReporterMorgan Ott, Illinois FFA President John Edgar, and Illinois FFAVice President Jake Ekstrand. Looking on is auctioneer and stateSen. John Sullivan (D-Rushville), who cried the sale. Auction pro-ceeds support the IAA Foundation. (Photos by Ken Kashian)


Thompson, Kuenstler receive IFB Distinguished Service AwardsDr. Robert Thompson of

Washington, D.C., and FredKuenstler of Olney last weekeach was named a recipient ofthe 2010 Illinois Farm BureauDistinguished Service Award.

The award — the highesthonor given by IFB — waspresented during the organiza-tion’s annual meeting in St.Louis.

Thompson recently retiredas the Gardner EndowedChair in Agricultural Policy atthe University of Illinois. Hewas the first person to serveas Gardner Chair, which wasestablished in 2003 and iscomprised of a program ofteaching; Extension educa-tion; and research on U.S.agricultural policy, competi-tiveness, and trade.

Thompson previously wasself-employed as a lecturerand consultant with expertisein world agriculture. Heserved as a senior adviser onag trade policy, as director ofRural Development, and as asenior adviser for the WorldBank; as president and CEOof Winrock InternationalInstitute for Agricultural

Development in Morrilton,Ark.; as a professor and asdean of agriculture for PurdueUniversity; as assistant secre-tary for economics for the U.S.Department of Agriculture;and as senior staff economistfor the President’s Council ofEconomic Advisers during theReagan administration.

He received a bachelor’sdegree from Cornell Universi-ty and a master’s degree and aPh.D in agricultural economicsfrom Purdue University.

His name appears in Who’sWho in the World and Who’sWho in America, and he hasserved on boards of directorsfor seven corporations, includ-ing Land O’Lakes andRabobank.

He and his wife, Karin, livein Washington.

Kuenstler has served aspresident of Prairie FarmsDairy, the largest dairy cooper-ative in the Midwest, since1999. He was elected to thePrairie Farms Board of Direc-tors in 1968 and previouslyserved as treasurer.

Under Kuenstler’s leader-ship, the Prairie Farms cooper-

ative topped $1 billion inannual sales.

He has been active in theindustry, serving three termsas a director of Prairie StateSelect Sires, 18 years on theDairy Herd ImprovementAssociation board, and 16years on the Dairy Lab Ser-vices board.

Kuenstler has been a mem-ber of the Richland CountyFarm Bureau since 1958. Hehas been in the dairy businesssince 1965 and currently milks130 cows and has a 700-acrefarming operation.

Kuenstler also has beenactive in his community, serv-ing as a trustee at St. Joseph’sCatholic Church and as amember of the St. Joseph’sSchool Board in Olney.

Kuenstler and his wife,Shirley, have a son, John, and adaughter, Kerry.

The Distinguished ServiceAward honors the memoryand service of Charles Shu-man, a Moultrie County farmleader who served as presi-dent of both IFB and theAmerican Farm Bureau Fed-eration.

Above, Illinois Farm Bureau President Philip Nelson presents RobertThompson with his Distinguished Service Award while Thompson’s wife,Karin, looks on. Below, Nelson gives the Distinguished Service Award toFred Kuenstler, who was accompanied by his wife, Shirley. (Photos by KenKashian.)

Three win Illinois Farm Bureau Eagle Award for ExcellenceHusband and wife specialty

growers and a longtime IllinoisFarm Bureau employee werenamed recipients of the IllinoisFarm Bureau Eagle Award forExcellence last week at the IFBannual meeting in St. Louis.

Glenn and Carol Meyer, rur-al Steeleville, own and operateG&C Meyer Farm, a vegetable,fruit, and greenhouse operationin rural Steeleville in RandolphCounty.

Glenn Meyer joined FarmBureau more than 50 years ago.He has served on the RandolphCounty Farm Bureau Board ofDirectors since 1958, holdingnumerous leadership positions,including five years as president.

He represented District 16on the IFB board from 1992 to2004, during which time he alsosat on the IAA FoundationBoard of Trustees, the CountryTrust Bank board, and served asthe interlocking member of theboard for the Illinois SpecialtyGrowers Association.

He has served on boards forthe Illinois Soybean Associa-tion; the Randolph County PorkProducers; the Farmers HomeAdministration; the Soil andWater Conservation District,and church and school boards.

county Farm Bureau Founda-tion.

Jerry Quick, Pontiac, hasbeen employed by Illinois FarmBureau since 1969. He will retireas IFB’s senior legal counsel inJanuary. Quick co-authored theIllinois Grain Code, which creat-ed legal and financial protectionfor producers in case of a grainelevator failure.

During his tenure with IFB,Quick has worked with stateagencies including the IllinoisDepartment of Agriculture andwith numerous affiliated com-

modity organi-zations.

The IFBEagle Awardfor Excellenceprovides theorganizationan opportuni-ty to recog-nize an indi-vidual or

organization for excellence onissues or programs importantto Farm Bureau and agricul-ture on a statewide and/ornational basis.

Carol Meyer has served onthe State Women’s Committee,was a voting delegate at the

American Farm Bureau Federa-tion (AFBF) annual meeting,was a delegate at the IFB annualmeeting, participated in Ag inthe Classroom and in a MarketStudy Tour to Argentina andBrazil in 2002, and is a graduateof Agriculture Leaders ofTomorrow (ALOT). For morethan 10 years, Carol served vari-ous roles on the Land of Lin-coln Soybean Association.

Currently, she serves on theag advisory committee for U.S.Rep. Jerry Costello (D-Belleville)and is vice president of the

Carol and Glenn Meyer

Jerry Quick

Pike County FB president honored for legislative workPike County Farm Bureau

President Terry Rush, Pitts-field, last week was awarded alaptop computer for his leg-islative work on behalf of Illi-nois Farm Bureau. Rushreceived his award at IFB’sannual meeting in St. Louis.

Rush was selected fromamong 150 eligible FarmBureau members who respond-ed to FB action requests andreported their legislative con-tacts as part of FB ACT (FarmBureau Agricultural ContactTeam). Previously, the FB ACThonor was presented during the

IFB Governmental AffairsLeadership Conference.

“If we (farmers) don’t tellour story,nobody else isgoing to,”Rush said. “Itis critical toget our legis-lators tounderstand(agriculturalissues).”

Rush con-tacted state lawmakers aboutthe need to pass legislationallowing farmers to use all-ter-

rain vehicles on rural roads. Hetalked with U.S. senators aboutthe need to address the estatetax.

“We (in agriculture) have tostep up and be a voice for theindustry, and Farm Bureaugives us a platform to representourselves to legislators throughcounty, state, and national orga-nizations that are respected,”Rush said.

Through IFB’s AdoptedLegislator Program, Rush hasused contacts with his countyFarm Bureau’s “adopted” legis-lator to help explain modern

agriculture and discuss agissues. By touring farms andrural areas, urban lawmakersgain a new perspective, Rushnoted.

“Until they get their feet onthe ground and get out in themix of agriculture, they don’tunderstand,” Rush said.

In Rush’s view, working withlegislators is an important partof being a Farm Bureau mem-ber and his civic responsibility.“My favorite phrase is — youhave absolutely no right tocomplain if you’re notinvolved,” Rush concluded.

Terry Rush

Hillsboro couple named YL Excellence Award winners

Brian and Dacia Brown of Hillsboro in Montgomery Countyreceived the 2010 Illinois Farm Bureau Young Leader Ag Excel-

lence Award last week in St.Louis.

The Ag Excellence Awardrecognizes county Farm BureauYoung Leader Committeemembers who may not be full-time farmers for their efforts inagriculture and leadershipachievement.

“(Winning the ExcellenceAward) has been a goal of oursfor five years,” Dacia said. “Weworked on our leadership expe-riences so we could compete

for it.”Brian is a district sales manager for Bo-Jac Seed Co. Dacia is a

teacher at a rural elementary school that encompasses seventowns in their area. She instills her family’s agricultural back-ground and beliefs into her regular curriculum.

“We try to be advocates for agriculture as much as we canwith the opportunities we have,” Dacia said.

Brian has helped his father expand the family’s farming opera-tion — which includes corn, soybeans, and custom-baling — thepast 10 years. He hopes to eventually farm on a full-time basis.

“It’ll happen,” he said.The Browns have two children, Nathan, 5, and Kaden, 2.They will receive $1,000 from IFB; a digital camera courtesy

of the IAA Credit Union; and expense-paid trips to the Ameri-can Farm Bureau Federation annual meeting in Atlanta, theGROWMARK annual meeting in Chicago courtesy of GROW-MARK, and the 2011 Young Leader State Conference in Spring-field.

Tim McDermott of Waterloo in Monroe County was the run-ner-up in the competition.


Brian and Dacia Brown

IAITC honors topeducation volunteers

Agricultural literacy leaders and volunteers with the Clay andKane County Farm Bureaus were named Illinois Agriculture in theClassroom (IAITC) volunteers for 2010 at the Illinois Farm Bureauannual meeting last week in St. Louis.

The honorees were Bob Willison of Louisville in Clay County,and Kane County residents Eldon and Sandy Gould of Maple Parkand their son, Chris, of Elburn.

Willison, known affectionately as “Farmer Bob” by his adoptedclasses, has been involved with the IAITC’s Adopt a Classroom Pro-gram since 1990. Each year he has written 20 to 30 letters to Chica-go students and wants to be matched with a new classroom.

Willison, a retired farmer, writes students about his rural child-hood and farm life, as well as modern farm production. He hasreached more than 500 students ranging from first graders to juniorhigh students.

At the end of the school year, Willison and his grandson visit hiscurrent Chicago class. He also helps with local IAITC projects.

Eldon, Sandy, and Chris Gould have been involved in IAITCsince 1999. To help educate teachers about farming, the Gouldshave hosted nearly 250 teachers on their farm for Summer Agricul-tural Institute tours.

The family also participates in the Kane County Ag Days pro-gram and has reached more than 24,000 students and 1,200 teacherswith presentations.

Sandy Gould is a volunteer reader to third grade students as partof the local IAITC Sprouts program. Chris has taught lessons abouthogs and farming to elementary students and recently discussedissues with a high school honors environment class.

The family has helped with the Kane County scholarshipfundraiser and the local touch-a-tractor educational program andserves on the Kane County Foundation Board.

Grant Strom, Dahinda, will represent IllinoisFarm Bureau in the Young Leader DiscussionMeet finals at the 2011 American Farm BureauFederation (AFBF) annual meeting Jan. 9-12 inAtlanta.

Strom, a member of the Knox County FarmBureau who grows corn and soybeans on his fami-ly’s farm, won the 2010 State Discussion Meet atlast week’s annual meeting in St. Louis. Last year hewas the runner-up in the state finals.

Strom and his wife, Kristen, live in Dahinda.Kristen is an English teacher at Dunlap HighSchool. The couple has a 4-month-old son, Gavin.

The Discussion Meet is an exchange of ideasand information in which contestants must ana-lyze problems and develop solutions in a coop-erative manner.

Strom and three other finalists discussedwhether American consumers adequately appreci-ate the importance of U.S.-produced food and ifAmerican consumers consider U.S. agricultureimportant to security in the future.

“We have a lot of uninformed consumers whodo not understand the food and fiber system,”

Strom said. “It’s our job (as farmers and FarmBureau members) to bridge the gap.”

As winner of the Discussion Meet, he willreceive $1,000 from IFB; a 100-hour lease on aMassey-Ferguson MF8650 four-wheel-drive

tractor courtesy of Agco; andexpense-paid trips to the AFBFannual meeting, the 2011GROWMARK annual meetingcourtesy of GROWMARK,and the 2011 Young LeaderState Conference in Spring-field.

The runner-up in the Discus-sion Meet was Katie Pratt of LeeCounty. The two other finalists

were Caleb May, Edwards County, and MarthaSmith, Champaign County.

IFB promotes and sponsors the DiscussionMeet with the goals of developing young peo-ples’ leadership and communication skills onbehalf of agriculture and of working togetherand to reach consensus on how to deal withcurrent issues in agriculture.

Strom wins YL Discussion Meet

Grant Strom

Matt DeBlock of Aledo in Mercer Countywas named the recipient of the 2010 IllinoisFarm Bureau Young Leader Achievement Awardlast week at the IFB annual meeting in St. Louis.

The award recognizes efforts in farming andag leadership achievement. DeBlock and hiswife, Kim, have two children, Kaitlynn andMacy. He will represent IFB Jan. 9-12 at theAmerican Farm Bureau Federation (ABFB)annual meeting in Atlanta.

“It was quite gratifying (to win the award),”DeBlock said. “The four of us (AchievementAward finalists) show a lot of promise about thefuture we have in agriculture.”

DeBlock, a fourth-generation farmer, man-ages his family’s farming corporation, and healso runs his own operation. The farms producerow crops and beef from a cow/calf operation.

The DeBlocks also run a commodity broker-age business and recently started a commercialtrucking business that focuses on hauling farmsupplies (grain, feed, and fertilizer) for cus-tomers.

“I believe our operation will continue to grow,mostly on the row crops side,” DeBlock said.

“I think the future is bright for young peoplein the industry,” he continued. “I think there willbe a lot of opportunities for younger farmers ifthey’re (those farmers) willing to accept themand if they’re financially sound and capable.”

He alsobelieves it’simportantfor youngfarmers tobe active inleadershiproles tohelp shapethe futureof theindustry.

“It’sreallyimportantas a youngindividualto become involved in an industry that reallyneeds a voice,” he said.

DeBlock will receive 150 hour’s use of anytwo-wheel-drive Case IH tractor; $1,000 cashfrom IFB; a one-year membership in the IllinoisCorn Growers Association; and expense-paidtrips to the AFBF annual meeting in Atlanta, theGROWMARK annual meeting in Chicago, andthe Young Leader State Conference in Spring-field.

Matt and Jenna Kilgus of Fairbury in Liv-ingston County were the runners-up in the com-petition.

Kim and Matt DeBlock

DeBlock receives YL Achievement Award

Dan Schaefer, a crop adviser from Tolono inChampaign County, was named the 2010 IllinoisCertified Crop Adviser award winner at the IllinoisFarm Bureau annual meeting last week in St. Louis.

Schaefer provides advice to farmers inChampaign and Douglas counties, and duringthe past 25 years, he has helped farmers makemanagement decisions on about 60,000 acres.

Schaefer has earned a reputation of doing anexceptional job in focusing on solutions to cropproblems and has been involved with on-farmresearch and field demonstrations.

Each year, he conducts several field trials toseek better management practices or evaluatethe economic and environmental benefits ofnew technology and products.

His recent work with nitrogen may helpfarmers maximize their yield, optimize nitrogen

use, and minimize their environmental impact.Schaefer has worked closely with the local

Soil and Water ConservationDistrict on a watershed projectand also with University of Illi-nois crop science researcherson field-length trials.

The Certified Crop AdviserAward is designed to increaseawareness that farmers andtheir service people strive to dotheir best in making economi-cally and environmentally

sound cropping decisions.As the state crop adviser award winner,

Schaefer’s name has been submitted for theinternational award by the Illinois CertifiedCrop Adviser Board and IFB.

Schaefer named top certified crop adviser

Dan Schaefer

Bob Willison Eldon Gould Sandy Gould Chris Gould


Thirty-two county Farm Bureau programs achieved the des-ignation of “Most Outstanding Program” last week at theIllinois Farm Bureau annual meeting.

Some of the winning programs already have been featuredin FarmWeek or are the subject of upcoming features. Thefollowing report provides a brief synopsis of one award-win-ning program in each of the eight categories.

The spokesperson, while integral to the projects reviewedhere, is representative of what in many cases were numerousvolunteers responsible for the program’s success.

AG LITERACY“Project-Based Learning Experience Program”Kenton Thomas, Pulaski-Alexander counties

Farm Bureau leaders teamed up with instructors andstudents at Shawnee College, which recently revived itsagriculture program.

Some students interned with thecounty Farm Bureaus while othersworked on projects directed at improv-ing and expanding the Illinois Ag in theClassroom (IAITC) Program as well asinvolvement in IFB Young Leaders.

“We worked to develop a program tohelp college students be more involvedin the happenings of Farm Bureau,”said Kenton Thomas, president ofPulaski-Alexander Farm Bureau.“There is a lot of interest in ag educa-

tion and the Young Leaders program.”Students in the program worked with educators to

collect data and student/teacher assessments to gauge thestrengths, weaknesses, and overall effectiveness of theIAITC program.

A recruitment program also was developed to drawmore participants into the Young Leaders program.

“It’s an opportunity to educate (students) about agand it helps them build their resumes,” Thomas said.

COMMODITIES & MARKETING“Soy Spaghetti Spectacular”Edna Newcomb, Washington County

The Washington County Farm Bureau Women’s Com-mittee helped promote the benefits of soy last spring byhosting a soy spaghetti spectacular.

Some soy pasta reportedly provides70 to 90 percent more protein with 20percent fewer carbohydrates than regu-lar pasta.

“It’s healthy and it helps soybean(growers),” said Newcomb, longtimechairman of the Women’s Committee.

The event, which attracted about 200people, was designed to promote soyfoods and to help open markets for soyproducts.

“A lot of people said they had neverheard of it (soy pasta) before,” Newcomb said. “We’d liketo make it more widely available.”

Organizers of the soy spectacular purchased enoughpasta for the meal and to provide each participant with abox of soy pasta to take home. The meal also includedhamburger in the spaghetti to promote the connectionbetween soy meal, a key feed ingredient, and the livestockindustry.

HEALTH & SAFETY“EMS Farm Safety Training Series”Brent Baker, Grundy County

Farming not only is one of the most dangerous occu-pations in the U.S., but it also presents situations thatsometimes are unfamiliar for emergency responders.

The Grundy County Farm Bureau inresponse partnered with the local FSand Soil and Water Conservation Dis-trict to train firemen, emergencyresponders, and emergency room per-sonnel about farm safety.

“Everybody agreed it was a goodidea,” Baker said. “Most of our firemenand EMTs have been around (ag) but,just like anything else, the disconnectfrom farming is getting further everyday.”

The three organizations hosted four safety trainingsessions. Two of the sessions focused on anhydrous

County Farm Bureaus recognized for outstanding program awards

ammonia, one covered farm equipment, and the otherprovided training for grain bin rescues.

“There are only a few other occupations that are morehazardous than farming,” Baker said.

The programs reached about 80 emergency respon-ders and firemen who now are better prepared to handlefarm-related emergencies.

LEGISLATIVE/POLITICALPROCESS“Congressional Staff Agriculture Tour”Darren Walter, LaSalle County

Members of the LaSalle County Farm Bureau, whomet with their former congresswoman during agricultureadvisory meetings, discovered her staff had a very limited

agricultural background.The county’s Legislative Committee,

therefore, hosted an agriculture tour ofLaSalle County for congressionalstaffers.

“Getting our message out and educat-ing the general public and lawmakers arepriorities of our county (FB),” Waltersaid. “Many lawmakers are two or threegenerations removed from the farm.”

The tour included stops on a cornand soybean farm, a diversified live-

stock farm, a seed corn field and production facility, anda local elevator.

Farm Bureau members during the tour were able toteach the staffers about the basics of farming and discussissues that are important to agriculture.

“We as Farm Bureau need to be a resource for law-makers to call on when they need to be educated about aparticular matter (that may affect the direction of ag leg-islation),” Walter said. “That’s absolutely critical.”

LOCAL AFFAIRS“Mississippi River Comprehensive Plan Petitions,Illinois General Assembly, and County Resolutions”Jim Koeller, Pike County

Farm Bureau members who live near the Mississippiand other river systems have seen the type of devastationthat can be caused by a major flood.

In the past 20 years, the floods of1993 and 2008, in particular, hit thoseareas hard.

So the Farm Bureaus in Pike, Han-cock, and other counties made a bigpush to move forward with the Missis-sippi River Comprehensive Plan in anattempt to reduce the effects of anyfuture floods.

“After the 1993 flood, it was ouropinion that we needed a (comprehen-sive flood) plan,” Koeller said.

Farm Bureau members collected nearly 10,000 signa-tures of people who support the plan, which calls forimprovements to the current levee system along the Mis-sissippi. The Illinois Senate and House each passed a res-olution to support it.

“It was a multi-pronged approach by the county FarmBureaus that really made it happen,” Koeller said. “Wegained a great deal of support to get the plan moved along.”

The next step is to convince members of Congress toauthorize the plan, Koeller added.

COMMUNICATION & PROMOTION“Food Check Out Week Promotion”Hugh David Scates, Gallatin County

Consumers in Gallatin and other counties in SouthernIllinois likely gained a greater appreciation for FoodCheck Out Day due to a promotional project spearhead-ed by the Gallatin County Farm Bureau.

Farm Bureau members in that area launched a week-long media campaign to highlight Food Check Out Day,

which is recognized each February asthe point at which the average Ameri-can has earned enough income to coverhis or her food expenses for the year.

The average American spends anaverage of 10 percent of income onfood compared to much higher rates inother countries.

“We probably reached more than70,000 people through radio, print, andTV,” Scates said. “They learned thingslike how food is priced, what percent of

the food dollar actually gets to farmers, and how muchwheat is used to make each loaf of bread.”

Radio stations each day hosted trivia contests andFarm Bureau provided prizes — gift cards that could beused at local grocery stores — for the winners.

“The biggest thing is it helped the general publicunderstand what Food Check Out Week is,” Scates said.The media campaign reached consumers in an estimated22 counties.

MEMBER RELATIONS“Online Product Sales”Aaron Phipps, Edgar County

The Edgar County Farm Bureau greatly expanded itsaudience to promote product sales, services, and otherFarm Bureau benefits through the use of its web page

and social networking sites such asFacebook and Twitter.

The idea took shape when EdgarCounty Farm Bureau remodeled itsfacility and leaders wanted to advertiseextra space for rent. Edgar County FBmanager Sarah Reedy posted a video ofthe facility online.

“We wanted to expand our onlinepresence,” said Phipps, a county FBboard member. “It was a real step for-ward for us.”

Reedy also helped start a Facebook page for the coun-ty FB. Edgar County also started selling products such asbean pod candles, custom barbecue spice, and plat booksonline. The items can be viewed at the website{http://edgarcountyfarmbureau.org}.

“We needed to find more ways to get more revenue,so we could provide more value to members,” Phippssaid. “I think it’s something we’d like to expand.”

Product sales for Edgar County FB reportedly havedoubled and members are raving about the new service.

POLICY DEVELOPMENT“What Do Our Members Want”Kirk Liefer, Randolph County

Concern in 2009 about 4-H members’ ability toshow animals at county fairs spawned a highly suc-cessful survey project conducted by the Randolph

County Farm Bureau.The county Farm Bureau surveyed

all of its “M” members about premisesregistration and the National AnimalIdentification System (NAIS) USDAattempted to implement.

“The surveys came back and mostopposed mandatory premises registra-tion and animal ID,” Liefer said. “Itgave our (county) board a clear direc-tion where to go with that.”

The Randolph County FB developedfour resolutions on the topic and two were adopted at thestate level. IFB currently supports a voluntary animal IDand premise registration systems.

“We decided to come up with resolutions that sup-ported what our members wanted,” Liefer said. “The ideawas as grassroots as it gets.”

USDA last year abandoned NAIS and currently istrying to develop a program that’s more producerfriendly.

Dan Grant compiled information for this report.

Kenton Thomas

Edna Newcomb

Brent Baker

Darren Walter

Jim Koeller

Hugh David Scates

Aaron Phipps

Kirk Liefer

TRADE


FTA compromise positive, but leaders must ‘step up’BY MARTIN ROSSFarmWeek

Illinois Farm Bureau Presi-dent Philip Nelson said he ispleased U.S.-South Koreantrade negotiations are movingforward, but he urges theadministration and Congressto pick up the pace in formal-izing long-delayed free tradeagreements (FTA).

U.S. and South Koreannegotiators reached an accordlate Dec. 3 that focuses onrevisions in automobile provi-sions — a key stumbling blockthat held up progress toward acongressional FTA vote duringPresident Obama’s unsuccess-ful November trip to Seoul.

Nelson lamented changesin prospective U.S. pork mar-ket access that had theNational Pork ProducersCouncil declaring it “took onefor the proverbial team.” Porkproducers nonetheless willretain “better access than ourcompetitors,” Nelson said.

Meanwhile, Farm Bureauurged negotiators to continueseeking improved Korean

duties and 30 months beforeEuropean Union duties wereto disappear. U.S. producersagreed to move back that dateto Jan. 1, 2016. Pork exportsto Korea are down about 17percent over the past year, but

U.S. pork sales reportedlycould reach nearly 600,000metric tons by the end of a10-year FTA phase-in.

• Corn. Feed corn wouldreceive immediate duty-freetreatment. The FTA providesimmediate duty-free access forcorn-based distillers driedgrains (DDGs) — Korea cur-rently can levy a 6.6 percenttariff on imported DDGs.

• Soybeans. The FTA offersimmediate duty-free access toU.S. beans for crushing and

soy meal. For the first time,U.S. food-grade bean produc-ers would have access to amarket currently limited by theKorean State Trading Enter-prise. Tariffs on refined soy oilwould be scrapped over five

years, with tariffs on crude oileliminated over 10 years.

A more gradual phasedown in U.S./Korean auto tar-iffs under the revised FTA isseen as key to congressionalsupport. Incoming SenateMajority Leader MitchMcConnell (R-Ky.) said he was“hopeful that with a more bal-anced Congress, we will seerenewed support for this andthe other trade agreementsthat have been languishing forthe past two years.”

market access for U.S. beef. The U.S.’ newest accommo-

dation with Korea is “at leastfavorable” toward securing anFTA, said Nelson, who servesas chairman of the AmericanFarm Bureau Federation TradeAdvisory Committee. Howev-er, he stressed “virtually noth-ing has happened” with Korea,Panama, or Colombia FTAsover the past two years.

Given global concernsabout the administration’s“appetite” in pursuing a suc-cessful World Trade Organiza-tion (WTO) agreement, hesuggested some movement inbilateral negotiations was likely,to send a positive WTO signal.

“From our standpoint, (theKorean FTA represents) about$1.6 billion to agriculture step-ping forward,” Nelson said. “Ithink, from agriculture’s view-point, this is going to be posi-tive in trying to get it in place.

“But having said that, this isjust one of these (agreements).Both Colombia and Panamaare important to agriculture, aswell. We’d like to see this

administration step up andCongress step up. We still don’thave this passed in Congress.”

The U.S. InternationalTrade Commission estimatesreduction of Korean importtariffs and tariff-rate quotas on

goods alone under the FTAwould generate $10 billion inannual exports to Korea andcontribute $12 billion annuallyto U.S. gross domestic product.

U.S. ag groups outlined anumber of sector-specificbenefits the Korean FTAwould offer:

• Pork. The original FTAslated a zero tariff rate onmost pork products movinginto South Korea effective Jan.1, 2014 — synchronous withelimination of Chilean porkIFB on trade

Illinois Farm Bureau producer-delegates last week sought totighten the relationship between aid and future trade while sup-porting a heightened push for global growth and sustainability.

According to trade policy approved at last week’s IFB annualmeeting in St. Louis, “The United States should use its agricul-tural production capacity to enhance food security and economicdevelopment.”

Delegates stressed the need to promote the U.S. not only as “areliable supplier of agricultural products and expertise but alsoas a leader in fostering economic development globally.”

The organization seeks an increased federal commitment tofood and agricultural assistance programs, foreign aid in theform of basic and value-added ag products rather than cash“whenever feasible,” and prioritization of aid for emergencyfood relief.

The federal government should encourage aid recipient nationsto use U.S. ag goods and services, the revised trade policy states.

At the same time, the current World Trade Organization(WTO) Doha Round is seen largely as a “development round”aimed at improving developing country economies and bringingthe world’s lower-income nations more fully into the tradingcommunity. As part of that push, WTO negotiators haveemphasized the need to foster food production and self-relianceparticularly south of the equator.

IFB policy, therefore, encourages using the federal Public Law(P.L.) 480 “Food for Peace” program — which finances sales ofU.S. commodities to developing countries — to focus aid on the“least-developed” countries, serving “local” markets and makinguse of “local staples.”

The World Initiative for Soy in Human Health and othergroups have supplied soy protein to bolster nutrition in localizedAfrican dishes and in indigenous breads distributed as part ofMiddle East and West Asian relief efforts. African efforts in par-ticular have been credited with generating new small businessesand thus improving village incomes.

In order to promote sustainable production growth, the delegatesalso urged an expanded role for P.L. 480 in improving food safety andlocal and regional trade capabilities in recipient countries.

Conscious of the competitive potential of global develop-ment, Illinois farmers nonetheless opposed foreign aid beingused by recipients to stimulate production or export of com-modities that are in surplus in the U.S.

IFB reaffirmed the need for WTO trade round completion tolower import tariff and non-tariff barriers and resumption ofnormal trade relations with Cuba.

‘We’d like to see this administration step up andCongress step up. We still don’t have this passed inCongress.’

— Philip NelsonPresident, Illinois Farm Bureau

PRODUCTION


U.S. soybean exports projection hits new highBY DANIEL GRANTFarmWeek

USDA on Friday boostedsoybean exports to anothernew high, based in part onstrong demand from China.

Soy exports for the yearwere raised 20 million bushelsto a record-high projectionof 1.59 billionbushels.

“Even withthe largeamount ofbeans (the Chi-nese) alreadybought, theystill have excel-lent crush mar-gins,” Helen Pound, marketanalyst with Penson GHCO,said during a teleconferencehosted by the MinneapolisGrain Exchange. “I don’t seethem backing off.”

Meanwhile, USDA in itsDecember crop report leftnational yield estimatesunchanged from a month agoat 154.3 bushels per acre forcorn and 43.9 bushels per acrefor soybeans. The final cropproduction numbers for 2010will be released next month.

USDA in January also willrelease its winter wheat planti-ng projections.

“Everybody expects quite abit more acres were planted,”Pound said. “But the crop isnot really starting out well(due to moisture issues and

roller coaster temperatures insome key wheat-growingareas). Anything that suggestsproduction issues is going tobe bullish to the market.”

USDA on Friday left itsprice projections for the mar-keting year unchanged at $4.80to $5.60 per bushel for cornand $10.70 to $12.20 for soy-beans.

The wheat price projectionwas narrowed to a range of$5.30 to $5.70 as ending stocksare up 10 million bushels due

to lower domestic use.Domestic wheat use was

lowered as millers continue togenerate more flour out ofeach bushel of wheat inresponse to historically highwheat prices, according toUSDA.

U.S. cornexports wereleft unchangedfrom a monthago at 1.95 bil-lion bushelsand endingstocks werenudged 5 mil-lion bushelshigher to 832million bushels.

U.S. corn ending stocks stillare down to the lowest levelsince 1995/96.

Soybean supplies alsoremain tight: USDA on Fridaytrimmed ending stocks by 20million bushels to 165 millionbushels. Carryout vs. usage isdown to 5 percent for soy-beans and 6 percent for corn,according to Pound.

“We already had anextremely tight soybean situa-tion,” the analyst said. “Nowit’s even tighter.”

The situation will continueto keep pressure on cropprices and enhances the needfor good crops next year.

“The battle for acres (in2011) will be one of the moreinteresting ones I’ve seen inawhile,” Pound said. “We needmore wheat, corn, and beans.How do you shake that out?

“A lot depends on theprice of crude, what happenswith the biofuels tax incen-

tives, and what happens withthe dollar,” she continued.“For the moment, it lookslike beans are underpricedand corn is the winner. Butthat could change at anytime.”

FarmWeekNow.comYou can view the full text of thelatest USDA supply-demandreport at FarmWeekNow.com.

‘We already had an extremely t ights oy b e a n s i t u a t i o n . N ow i t ’s eve ntighter.’

— Helen PoundPenson GHCO market analyst

Korves: U.S. corn production must grow to meet demand

End-users may not like $5 corn, but on the plus side, the higherprices in recent years certainly have added incentives to increase pro-duction.

And higher corn yields will be necessary in the future as demandis expected to remain on an uptrend, according to Ross Korves, eco-nomic policy analyst with Pro Exporter.

Korves discussed the opportunities and challenges of corn pro-duction last week during a breakout session at the Illinois FarmBureau annual meeting in St. Louis.

“When corn was $2 (per bushel), soybeans were $5, and wheatwas $3, there wasn’t much incentive to increase output,” Korves said.

But increased demand, particularly from the ethanol industry andexport market, pushed corn prices to higher levels.

Korves predicted U.S. corn exports through 2030 will increase by anaverage of 100 million bushels per year. The demand gains are expect-ed to be a direct reflection of world population numbers that areexpected to grow from 6.8 billion people to 9.1 billion people by 2050.

“We’re going to hit a population peak,” Korves said. “Betweennow and then we have to increase food production between 70 and100 percent.”

U.S. corn acres are projected to reach 90.5 million acres in 2011,then level off.

So farmers will have to find a way to produce more yield per acre,without adverse environmental impacts, to feed the world’s growingappetite, Korves said.

“Unless the yield for corn goes up in the U.S., corn production isnot going to grow,” he said.

Fortunately, Korves believes the U.S. corn industry is up to thechallenge. Pro Exporter projections suggest U.S. corn yields willgrow annually by 2.5 bushels per acre, compared to USDA’s estimateof 1.9 bushels per acre.

The boost in yields will be achieved by improved genetics andagronomic practices, according to the economist.

Korves projected farmers will be able to plant more plants peracre due to genetic improvements. He said current research is testing44,000 corn plants per acre compared to an average this year ofabout 31,000 plants per acre.

Meanwhile, drought tolerance in corn plants could allow farmersto double production while using the same amount of water, he said.

And improved nitrogen use efficiency could be critical to higheryields, as well. About 15 to 20 percent of nitrogen currently appliedis lost before corn plants are able to use it, according to Korves. —Daniel Grant

Illinois products websiteone-stop shop for holidays

The Illinois Department of Agriculture (IDOA) maintains a web-site to promote products made by Illinois food companies.

Currently, about 200 companies are listed on the site, includingsome that offer special gift items and gift baskets. Their productsrange from gourmet coffee and chocolate to fine wine and cheese.

“Illinois food products make creative gift ideas and are a greatway to demonstrate support for Illinois agriculture,” said AgricultureDirector Tom Jennings.

The website also includes items such as soy candles, beauty, healthand wellness products, and decorative items.

“The best part is that you can shop from the comfort of yourhome and have the products delivered wherever you choose,” Jen-nings added.

To visit the website, go to {www.agr.state.il.us} and click on a rec-tangular box on the right side of the page entitled, “Purchase IllinoisProducts Gift Items Online.”

MARKETING


New marketing program diversifies risk managementBY DANIEL GRANTFarmWeek

A new marketing programthat combines the expertiseof three well-known andestablished advisory serviceswill allow farmers to diversifythe way they manage pricerisk.

AgriVisor, Doane Adviso-ry Services, and Pro Farmerrecently partnered to offerthe new Crossover Insightprogram.

Farmers who enroll in theprogram designate a certainportion of their grain pro-duction to be marketed byeach of the specialists.

The analysts will establisha final futures and basis priceand market the grain betweenJan. 5 and Sept. 15, 2011.

AgriVisor partnered withDoane and Pro Farmerbecause all three are non-biased — none of them buysgrain from producers butinstead are geared toward get-ting the best price for farm-ers — and all three have a

long history in the businessand a proven track record,Huston said.

A series of informationalmeetings about the newCrossover Insight programrecently was held in Illinoisand Iowa.

Farmers can check out detailsof the program or track theperformance of each analystonline at{www.graininsight.com}.

“The Crossover Insightprogram allows producers toleverage the expertise ofthese three organizations tohelp market a portion oftheir crop production,” saidRob Huston, AgriVisor man-ager.

Huston recommendedfarmers who take advantageof the program designateanywhere from 5 to 20 per-cent of their bushels to helpmanage price risk at partici-pating elevators.

Margin risk has increasedgreatly for farmers since 2006as crop and input prices have

fluctuated in historically highranges.

“The margin risk per acreis extremely volatile,” Hustonsaid. “That’s why it’s so muchmore important for farmersto diversify the way theymanage price risk.”

Producers encouraged to register for livestockcertification workshops

The University of IllinoisExtension will offer severalLivestock Manager Certificationworkshops, and producers areencouraged to pre-register toensure a spot at the session thatfits their schedule.

Advance registration also isencouraged to allow participantsto receive a manual in advance,which is important for thoseplanning to take a written Illi-nois Department of Agriculture(IDOA) test after the workshop.

The state Livestock Manage-ment Facilities Act (LMFA)requires producers with opera-tions designed for more than300 animal units to havemanure management certifica-tion and to renew the certificateevery three years.

Producers with more than300 animal units must attend anapproved training session orpass a written IDOA test. Pro-ducers with more than 1,000animal units must attend anapproved training session andpass a test.

The U of I also offers aseries of five online quizzes atno charge. Passing all fivequizzes will meet the staterequirement of attending a cer-tified livestock manager work-shop; however, it will not meetthe state requirement for anIDOA exam that is required forall producers with more than1,000 animal units.

Workshops that begin at 8:15a.m. will end at 12:30 p.m. TheIDOA exam will be adminis-tered afterward. The 9:30 a.m.workshops will end at 2 p.m.,followed by the IDOA exam.Participants who arrive 20 min-

utes late cannot be certified forattending the workshop.

The January workshops,dates, and locations are: Jan. 11,8:15 a.m., Effingham CountyExtension office, Effingham;Jan. 12, 9:30 a.m., beef-dairyemphasis, Clinton CountyExtension office, Breese; Jan.19, 8:15 a.m., Knox CountyExtension office, Galesburg;and Jan. 20, 8:15 a.m., Adams-Brown Extension office, Quincy.

The February workshops,dates, and locations are: Feb. 9,9:30 a.m., beef-dairy emphasis,Stephenson County FarmBureau Building, Freeport; andFeb. 10, 8:15 a.m., DeKalbCounty Farm Bureau Building,Sycamore.

The March workshop will beMarch 10, 8:15 a.m., Sangamon-Menard Extension office, Illi-nois State Fairgrounds, Spring-field.

To register for a workshop orbuy a training manual or CDwith a credit card, call 800-345-6087. Participants do not need anew manual if they have a 2003or newer one.

Advance workshop registra-tion is $30 per person and $20for each additional registrantfrom the same farm if registeredat the same time. The walk-inregistration fee is $92. Manualand CD prices, including ship-ping, are $62.50 for a manual,$32.50 for a CD, and $87.50 fora manual and CD.

For more information, con-tact Randy Fonner, U of IExtension coordinator, at 217-333-2611 or [email protected], or go onlineto {www.livestocktraining.com}.

Illinois Farm Bureau delegates check their notes during policy discussions at the organization’s annual meet-ing last week in St. Louis.

NATURAL RESOURCES


January 5 Pre-Conference Workshops 1) Pumpkin Production and Pest Management 2) High Tunnels, 2011: Tomatoes and more 3) Good Agriculture Practices: Making a Farm Plan and Becoming GAP - Certified 4) Expanding Farmers Market Opportunities

January 6 - 7 Conference Tracks Fruit Vegetables Herbs Agritourism/Marketing Organic Production Business Management Irrigation

This program is overflowing with the resources you need to grow your business and your profits.

Go to www.specialtygrowers.org for full agenda

For more information: 309-557-2107 or [email protected]

Program Highlights Retail Readiness Labor issues Insurance Legal issues Post Harvest Handling of Produce Public Relations & Advertising Producer Certification Programs

State repairs damaged leveesat Sanganois Wildlife Area

The state has completed a$2.95-million repair of flood-damaged levees at the 10,000-acre Sanganois Fish andWildlife Area near Chan-dlerville.

The levee system protectsIllinois Department of Natur-al Resources (IDNR) propertyas well as private agriculturaland hunting property fromflooding.

“This project protects thequality and productivity ofthese wetlands from filling inwith sand and sediment, main-taining its ecological qualityand opportunities for outdoorrecreation of all kinds,” saidMarc Miller, IDNR director.

The project repaired 2002flood damage to theBarkhausen Refuge Levee,Coon Slough River Ridge, andWhite’s Levee as well as addedoverflow spillways toeach. The $2.95-million pro-ject, which began in late 2008,will decrease the likelihood ofthis type of failure will berepeated.

The construction fundswere obtained from IDNR,but the Federal EmergencyManagement Agency willreimburse the state for about75 percent of eligible coststhrough its Flood Reimburse-ment Program. The projectwas overseen by the CapitalDevelopment Board.

The project contractor wasLaverdiere Construction Inc.of Macomb, and the designerwas CWI/HDR of Spring-field.

The Sanganois Fish andWildlife Area, administered byIDNR, is located at the con-fluence of the Sangamon andIllinois rivers. Portions of thearea are located in Cass,Mason, and Schuyler counties.

Flooding in the spring of2002 created a 200-by-20-footbreach in the Barkhausen Lev-ee. The flooding also created abreach in the Coon SloughRiver Ridge, which allowed theSangamon River, even duringminor flooding, to flowunchecked through Sanganois,draining the site, washing outroads, and depositing high lev-els of silt into the refuge.

Hunters in Illinois shot a preliminary totalof 98,700 deer during the seven-day firearmseason from Nov. 19-21 and Dec. 2-5, accord-ing to the Illinois Department of NaturalResources (IDNR).

“Harvest results for this year’s firearmdeer seasons were remarkably similar tolast year,” said Paul Shelton, IDNR forestwildlife program manager. “Fifty-onecounties saw increases in harvest, while 49counties declined. Management effortsaimed at controlling deer herds while main-taining recreational opportunities are pay-ing off.”

The preliminary second season (Dec. 2-5)total was 30,663, down compared to last year’ssecond season total of 33,293. However, thepreliminary first season (Nov. 19-21) total washigher at 68,037 compared to last year’s66,126.

Preliminary reports show Pike County onceagain topped the individual county deer totals

as hunters shot 3,130 deer in the county. Oth-er top county totals were Fulton, 2,495;Adams, 2,468; Jo Daviess, 2,285; and Ran-dolph, 2,192.

Deer hunters still have opportunities to gohunting in Illinois in the coming weeks. Thearchery deer season continues through Jan. 16.The seven-day split late-winter firearm antler-less-only deer season and special chronic wast-ing disease (CWD) deer season are Dec.30–Jan. 2 and Jan. 14-16.

Permits for both late-winter and a specialCWD seasons will be available over thecounter through IDNR direct license and per-mit agents starting Tuesday.

As in years past, unfilled 2010 firearm, muz-zleloader, youth, and landowner firearm per-mits will be valid for the late-winter seasonprovided they were issued for an open county,but only antlerless-only deer may be shot. Formore information, go online to{www.dnr.illinois.gov}.

Illinois hunters claim 98,700 deer

of Trade, Federal ReserveBank of Chicago, Willis(formerly Sear’s) Tower SkyDeck, and the Cook CountySheriff Department’sgreenhouse project. Cost is$55 and includes lunch andadmission. Send a checkand registration by Monday,Jan. 10, to the Farm Bureauoffice. Call the FarmBureau office at 857-3531for more information.

MA C O N — FarmBureau and Ever-

green FS will sponsor aSpill Prevention, Control,and Countermeasures meet-ing at 1 p.m. Tuesday, Dec.21, at the Farm Bureauoffice. On-farm fuel andoil storage regulations willbe discussed. Don Herring,Evergreen FS, will be thespeaker. Call the FarmBureau office at 877-2436for more information.

“From the counties” itemsare submitted by county FarmBureau members. If you havean event or activity open to allmembers, contact your countyFarm Bureau manager.

FROM THE COUNTIES


CH A M PA I G N —The Farm Bureau

winter meeting series con-tinues with “The State ofthe State — Financials”meeting at 7 p.m. Wednes-day at the Farm Bureauauditorium. Kevin Semlow,Illinois Farm Bureau direc-tor of state legislation, willbe the speaker. Call theFarm Bureau office at 352-5235 or visit the website{www.ccfarmbureau.com}for more information.

• Farm Bureau andCountry Financial willsponsor a free information-al dinner buffet at 5:30p.m. Tuesday or a breakfastbuffet at 7:45 a.m. Wednes-day at the Farm Bureauauditorium. Rick Morgan,Country Financial seniorfinancial security consul-tant, will discuss estateplanning, retirement plan-ning, and long-term careissues. Call the FarmBureau office at 352-5234for reservations, or visitthe website at {www.cc-farmbureau.com} for moreinformation.

FULTON — TheWomen’s Committee

will sponsor a “Design on aPine” event at 6:30 p.m. Tues-day at the Farm Bureau office.Julia Pryor, University of Illi-nois Extension horticulturecoordinator and Master Gar-dener, will demonstrate waysto decorate your home. Thereis no charge for members.Cost is $3 for non-members.Call the Farm Bureau office at547-3011 for reservations ormore information.

LE E — A strokedetection plus

screening will be from 9a.m. to 4:30 p.m. Thursdayat the Farm Bureau office.Farm Bureau members mayreceive all four screeningsfor $90. Call 877-732-8258for an appointment.

• Farm Bureau is sellingBeanpod candles. Stop bythe office from 8 a.m. to4:30 p.m. to purchase thecandles.

• The Marketing Com-mittee will sponsor a bustrip Thursday, Jan. 27, toChicago. Included will betours of the Chicago Board

Have a dirty job? Video tape itFarm families perform a lot of dirty, tough jobs in the

process of providing food and fiber for their fellow Ameri-cans.

But, the big question is — Can they compete with showhost Mike Rowe, who will be the keynote speaker at the Amer-ican Farm Bureau Federation’s (AFBF) 2011 annual meetingJan. 9-11 in Atlanta?

Farm Bureau members from across the nation are invited toshoot and share their best home videos posted to YouTubeshowing just how challenging, arduous, and grungy farm andranch work can be.

And, if their real-life farm and ranch jobs are tough enoughand compelling in video format, they will have a chance to seetheir video on the big screen in front of 5,000 or so otherfarmers and ranchers attending the annual meeting.

It’s all part of AFBF’s “Farm/Ranch Families Work” videocontest. The deadline for the contest is Dec. 29. Once mem-bers have their hard-work videos posted to YouTube, all theyneed to do is send a link before the deadline date to the con-test e-mail address: [email protected].

The video contest is a good match with the subject of hardwork, which is often the favorite topic of keynote speakerMike Rowe, host of Discovery Channel’s Dirty Jobs program.

A full listing of the contest rules can be found at:{http://fb.org/index.php?fuseaction=2011annual.contest}.

Website offers info/ideas for food basket donations

Karen Chapman-Novakofski, a University of Illinois nutri-tionist, recently launched a website with information and ideasfor nutritious and useful food basket donations.

Chapman-Novakofski developed a website with informa-tion about packing food baskets after receiving requests fromorganizations wanting to include healthier options for fooddrives.

“It can be difficult for people to think of meals made fromnon-perishable foods,” she said. “Trying to think of achievingfood guidelines with all non-perishable goods can be verychallenging ... It was more difficult to plan a day’s worth ofmeals than we had originally thought.”

For instance, dairy products that are non-perishable are lim-ited, so choosing calcium-fortified grains can be a healthyoption. Non-perishable meat and protein foods also are limit-ed. Trying to find ways to make canned vegetables moreappealing also was a goal.

The site, “Making the Most of Your Food Basket Dona-tions” {http://urbanext.illinois.edu/foodbaskets/} has samplemenus, shopping lists, and recipes for foods made from non-perishable food items.

Although the site was developed primarily for groups seek-ing information for food drives or food baskets, Chapman-Novakofski said the information also would work for carepackages for soldiers.

“Just recently, someone asked me for healthy ideas for abackpack program they wanted to develop to send food homefor a family of four with a school-aged child. We used a lot ofthe same information and expanded it a bit.”

Chapman-Novakofski had help from two undergraduatedietetic students, Maegan Walrath and Maria Thomas.

Ag scholarship digestIllinois Soybean Association (ISA) crop sciences

scholarships — ISA is offering crop science scholarships atIllinois State University (ISU), Southern Illinois UniversityCarbondale (SIU), University of Illinois at Urbana-Cham-paign, and Western Illinois University (WIU) for the 2011-12school year.

Application deadlines are: Jan. 7 for all ISU students, Jan.15 for U of I incoming freshmen, Jan. 31 for all SIU stu-dents, and Feb. 1 for U of I transfer students. Details arepending for the WIU scholarship.

Scholarship amounts, availability, and application require-ments vary by university. Scholarships are open to incomingfreshmen for 2011-12 and transfer students.

For more information, go line to {www.ilsoy.org} or con-tact the respective university or high school guidance coun-selors.

PROFITABILITY


Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $34.79-$51.00 $43.5440 lbs. $60.66 $60.6650 lbs. n/a n/aReceipts This Week Last Week

22,970 24,377*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 $65.63 $65.21 0.32Live $48.49 $48.26 0.24

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn12-02-10 33.5 19.2 25.211-25-10 64.3 22.3 29.4Last year 61.6 13.6 28.6Season total 623.8 572.1 439.0Previous season total 553.0 443.5 438.7USDA projected total 1570 1250 1950Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers $100.86 $103.82 -2.96Heifers $100.98 $103.59 -2.61

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 Change118.09 117.46 0.63

CME feeder cattle index — 600-800 Lbs.

Slaughter Prices - Negotiated, Live, wooled and shorn 125-175 lbs. for 130-159.96 $/cwt., dressed, no sales reported.

Lamb prices

Farmers have opportunity to make every bushel countBY LANCE RUPPERT

We have all been affected bythe economic downturn and thegovernment’s attempts to helpstimulate the economy to recov-ery in the last two years. Theglobal economy is a vast maze

of cause andpotentialeffect that canmake the mostintelligenteconomist’shead spin.

One thingwe do know isthat the cur-

rent and future prospects forpleasing commodity prices is areality. With ending stocksdecreasing steadily each yearand high demand from foreignnations with large populationsof hungry people to feed, theimpact the American farmerwill have on the U.S. and worldeconomies will be substantial.

In the end, the Americanfarmer plays a unique part inshaping this country’s and theworld’s future. That is notsomething to take lightly. Youhave the unique opportunity tomake every bushel count.

The potential return for yourfarming enterprise is tremen-dous. With September 2011corn and soybeans tradingaround $5.50 and $12.50 perbushel, respectively, the returnon investment calculations onmany agronomic practices aremuch different than in past years

when commodity prices werelower. Your incentive to growmore on every acre and makeevery bushel count is very high.

As you work with your localFS crop specialists on your 2011cropping plan this prepay season,here are a few key things to con-sider in the discussion:

Selecting the best hybridsand varieties with value-addedtraits is a huge first step in your2011 success. Protecting that

seed investment with seed treat-ments will allow you to have ahigher percentage of emergedplants vs. planting population,lower replants, and more poten-tial in every acre you plant.

Managing and hopefullyeliminating early weed competi-tion with pre-emergent residualproducts give you a better yieldfoundation and allow you abroader window for post herbi-cide applications.

Fungicide applications can gainyou huge returns in both corn andsoybeans. Significant yield gainshave been measured and docu-mented for many years, but don’tneglect to consider the benefits ofbetter standability and harvestefficiency.

How might micronutrientshelp in unlocking yield poten-tial? Challenge your crop spe-cialist to discuss new innova-tions to maximize every acre.

The ability to grow additionalbushels has the potential tohelp you reap huge financialrewards in 2011 and into thefuture.

Best wishes for a happy holi-day season and prosperous2011.

Lance Ruppert is GROW-MARK’s crop protection marketingmanager. His e-mail address is [email protected].

Lance Ruppert

Could basis levels fall apart again?

Farmers concerned about multi-market system BY DANIEL GRANTFarmWeek

Issues with the wheat con-tract, in which the basis bot-tomed out nearly $2 belowthe futures price in July 2008,improved this summer.

But the jury is still out asto whether a change in thewheat contract at the CMEGroup, which implemented avariable storage rate (VSR)beginning with the July con-tract, was responsible for cashprices nearly converging withfutures prices or if the movetoward convergence was dueto market dynamics.

Demand for U.S. wheatsoared earlier this year, andcash prices improved whenRussia announced an exportban on wheat due to majorcrop losses from a widespreaddrought.

Members of the IllinoisFarm Bureau ProfitabilityAdvisory Team discussed theissue last week during theIFB annual meeting in St.Louis.

“We can’t say it (themove to variable storagerates) solved the problem(with a lack of conver-gence), but it certainly was astep in the right direction,”said Doug Yoder, IFBsenior director of affiliateand risk management.

It will take months or evenyears to study the market anddetermine the impact ofVSR, Yoder noted. In themeantime, the CME Groupindicated it has no plans toimplement VSR for its cornor soybean contracts.

And the fact that nochanges have been made tothe corn and bean contractsis a concern for farmers andelevator managers, accordingto Darren Walter, a memberof the LaSalle County FBBasis Committee.

Basis levels for soybeans inrecent years have dipped asmuch as 80 cents belowfuture prices while the basisfor corn has dropped morethan 50 cents below the pointof convergence.

“We’re currently approachingprice volatility levels we were attwo years ago when many coun-try elevators were strained andsome collapsed due to a lack ofcredit,” Walter said. “Since then,nothing has been done to solvethe problem.”

So how does a lack of con-vergence affect farmers andelevator managers? It makeshedging grain ineffective andthe instability in the marketmakes it more difficult forelevators to obtain credit,according to Walter.

Part of the problem is thatgrain is priced in cash mar-kets, futures contracts, andwhen contracts are settled viashipping certificates, Waltersaid.

“Most farmers are notdelivering to point source ter-minals (used to settle con-tracts on the Illinois and Mis-sissippi Rivers),” Walter said.“We rely on local elevatorsfor the majority of our stor-age.”

Walter believes the currentgrain delivery system is aclosed-door club to mostfarmers.

“If we’re able to hedgeand know there’s coverage,then everybody would behappy,” he added.

The Profitability AdvisoryTeam added new membersand replaced outgoing leader-ship at its recent meeting.Dale Hadden, District 10director from Jacksonville,took over as chairman forretiring board member KentSchleich of Fairview.

An Energy Innovation Workshop in Januarywill offer participants ideas for saving moneyand energy. The workshop will be from 9 a.m.to 3 p.m. Jan. 21 in St. Anslem’s Hall,Kampsville. The early registration deadline isJan. 14.

Information also will be provided aboutsolar, wind, and biomass energy systems.

Speakers will include Matt Aldeman with theCenter for Renewable Energy, Jolene Williswith Illinois Wind, and Gary Letterly with Uni-versity of Illinois Extension.

Representatives of the Illinois Rural ElectricCooperative and Ameren Illinois will discussways to reduce power bills and offer renewableenergy ideas, while individuals with state and

federal programs will provide information ongrants and tax incentives.

The early registration fee is $5 and includeslunch and materials. After Jan. 14, the feeincreases to $10. A minimum of 30 registrantswill be needed by Jan. 14 or the workshop willbe canceled.

Workshop sponsors include: Calhoun Coun-ty Farm Bureau, Calhoun County Soil andWater Conservation District and NaturalResources Conservation Service, U of I Exten-sion, and the McCully Heritage Project.

To register or obtain more information, con-tact the Two Rivers Resource Conservation andDevelopment agency, Box 87, Pittsfield, Ill.,62363. The telephone number is 217-285-4114.

Workshop on energy savings, renewable energy planned

PROFITABILITY


AgriVisor Hotline Number

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AgriVisor endorsescrop insurance by

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CASH STRATEGISTCorn Strategy

�2010 crop: It appears themarket is attempting to estab-lish a near-term high, then itcould drift into the six- to sev-en-week low due in early Janu-ary. Confirmation of lowerprices would be a close below$5.55 in the March contract.Use current levels to priceremaining bushels you have tosell. It still looks like hedge-to-arrive (HTA) contracts forwinter/spring delivery may bethe best marketing tool, butcheck returns against storagecosts.

�2011 crop: The grossincome per acre offered bycurrent new-crop pricesremain very attractive. Userallies to $5.25 on Decemberfutures to make catch-up sales.

�Fundamentals: Onceagain USDA managed to sur-prise the trade. The Decembersupply/demand report pegged2010-2011 U.S. corn endingstocks at 832 million bushelsvs. trade expectations for 806million. It appears the recentsurge in U.S. corn prices didan adequate job of rationingdemand. Soybean Strategy

�2010 crop: January soy-beans pushed through minorresistance but have done noth-ing to offset the negativeimplications of the Nov. 12key reversal. January futuresstalled once they exceeded$13. Use rallies for makingcatch-up sales.

�2011 crop: There couldbe another opportunity toprice new-crop beans in Janu-ary, but we may use strengthat that time to add anothersale. Use rallies above $12 onNovember 2011 futures tomake catch-up sales.

�Fundamentals: Theshift in Chinese policies overthe past weeks dropped crushmargins to low levels. Someplants have stopped opera-tions because of poor prod-uct demand. While there has-n’t been any soybean cancella-tions, some buyers are askingto have shipments delayed. Agenerally dry pattern contin-ues in Argentina, but there’sstill time for conditions tochange and allow them to

produce a good crop.Wheat Strategy

�2010 crop: Wheat pricessurged higher and managedto penetrate the significantresistance at $7.75 on theChicago March contract.The next level of resistancecomes at the previous high of$8.11. Use current strengthto wrap up sales if you stillhave inventories. Because ofthe big futures carry, HTAcontracts for winter/springdelivery still appear the besttool.

�2011 crop: Use rallies to$8.15 on Chicago July 2011

futures for catch-up sales. Ifbasis is wide on cash contracts,use a HTA contract.

�Fundamentals: TheUSDA report was unable tofeed the bullish momentum,as 2010/2011 U.S. endingstocks were increased to 858million bushels. However, itappears as if the trade’s keyfocus remains on the excessiverain in eastern Australia,which is going to reduce thequantity of good millingwheat in the world. The cur-rent forecast is not offeringany relief, as additional show-ers expected over the nextseven to 10 days.

Export activity remains a keyfocus in the daily trade. Wheatsales have been sluggish but haverecently gained momentum. Thecombination of a strong weekly

Basis charts

export sales number and confir-mation of a sale of U.S. wheat toIraq both were encouraging.

Longer-term, the U.S. couldbenefit from the decliningwheat quality in Australia dueto excessive moisture.

Soybean sales have beengood, as demand out of Chinaremains aggressive. China’sOctober/December 2010 soy-bean imports may reach 14.2metric million ton (521 millionbushels). It appears the Chi-nese are attempting to buildstocks in an effort to protectthem from the possibility of ashort crop in South America.

However, if weather condi-tions improve in Argentina, wecould see a sharp decline indemand at any time.

Corn exports have been fairlysteady, and if the trend contin-ues throughout the marketingyear, we should see sales come innear the current USDA forecast.

Cents per bu.

Export sales a key focus

PERSPECTIVES


Letter policyLetters are limited to 300 words, and a name and address

must accompany each letter to be published.FarmWeek reserves the right to reject any letter. No polit-

ical endorsements will be published.All letters are subject to editing, and only an original bear-

ing a written signature and complete address will be accepted.A daytime telephone number is required for verification; how-ever, the number will not be published.

Only one letter per writer will be accepted in a 30-day peri-od. Typewritten letters are preferred.

Please send letters to:FarmWeek Letters1701 Towanda Ave.

Bloomington, Ill., 61701

LETTER TO THE EDITORSupports forensic auditof state governmentEditor:

Forensic audits are veryexpensive. Certified publicaccountant specialists dig deeplooking intensely for thingsbeing done illegally.

Numbers talk. Our state’sfiscal condition is on life sup-port.

Funds established for spe-cific purposes are being raid-ed, scraped for desperate cashflow problems. There is noway for those funds to bepaid back, other than end-of-year borrowing fromsomewhere else. Sen. PaulSimon’s last book was “OurCulture of Pandering.“ We

need a cultural change.One has to ask how we can

get out of this mess. Forensicaudits establish a truth point,something we do not nowhave. Cleaning house is verymuch in order for a startingpoint.

The two past governors arebut the tip of the iceberg ofIllinois state corruption. Aquick survey of those publicofficials who have been a partof the broken culture is sober-ing.

Yes, a forensic audit is veryexpensive! But how expensiveis our culture of orrup-tion? We need to turn a cor-ner.

I believe a steady process of

forensic auditing of our gov-ernment would soon help usturn the corner. As public offi-cials realize the coming scruti-ny, they would change for thebetter.

The world’s longest journeybegins with a first step. I sug-gest a forensic audit.

Public employees who arehanging on, doing good, con-scientious work would becleared by the audit, freeingthem from the ugly cloud nowhanging over them.

Those courageous peopleneed a pat on the back, andthe knowledge that we appre-ciate them.LIN WARFEL,Tolono

Editor’s note: A forensic audit isan application of accounting methodsto the tracking and collection of

forensic evidence, usually for investi-gation and prosecution of criminalacts such as embezzlement or fraud.

Dudley Williams can see Mexicofrom his ranch on the common andconflicted international border in south-ern New Mexico.

He also has seen first-hand the prob-lems caused by smuggling and other ille-

gal activities thatare part of thedaily landscapefor ranchers andfarmers all along

the 1,969-mile border that stretches fromBrownsville, Texas, to San Diego, Calif.

When word got out that federal legis-lation (S.1689) had been drafted to createfederal wilderness areas along this bor-der, Williams and other ranchers wererightly concerned.

Law enforcement agencies, especiallythe U.S. Border Patrol, could be ham-strung when it comes to enforcing lawand order along the border, due to strictwilderness-area rules.

Strict limits on vehicle use in designatedwilderness areas is one example. As ranch-er Williams pointed out, “You can’t evenride a bicycle in a federal wilderness area.”

After hearing about the proposedexpansion of wilderness areas in theirborder region, ranchers in New Mexicoorganized and have worked diligently toinform the non-ranching public about allsides of the debate.

Their organization started out with ahandful of families and grew to a coali-tion of more than 800 businesses andorganizations opposed to this move.The New Mexico Farm and LivestockBureau joined the effort and produced adocumentary on the issue.

Pressure from the ranching group ledto some changes that reflect their con-cerns about public safety and nationalsecurity, including allowing low-levelsurveillance flights and some lawenforcement buffer zones. However,due to their experiences with otherfailed federal promises, these ranchersremain concerned.

The group has come up with alternateland designations that would protect thelands in question but keep them out fromunder what they consider the stringentstrings attached formally to federal wilder-

ness designa-tions.

In supportof their posi-tion, the ranch-ers point to theongoing securityconcerns createdby lawlessness inother locked-upfederal land areason the Arizonaborder, includingthe Buenos AiresNational WildlifeRefuge and theOrgan Pipe National Monument.

The rancher-farmer group also isconcerned about talk that there may be alast-minute move in the current lame-duck session of Congress to pass anomnibus public lands bill, which couldinclude the quarter of a million acres ofproposed wilderness in New Mexico, onand near the U.S.-Mexico border.

Janice Kephart, an internationally rec-ognized border security expert, recently

issued a report forthe Center for Immi-gration Studies inwhich she concludesthat designation ofnew border wildernessareas would “providethe Border Patrol withlittle ability and littleincentive to do its jobunder law, let alone state,local, and other federallaw enforcement.”

Kephart said actualconservation of public

lands would be better served by “protect-ing our public safety and national securi-ty with adequate law enforcement andinfrastructure.”

The ranchers who live and work inthis rugged outlaw country are inclinedto agree with that assessment.

Erik Ness is a new columnist for AmericanFarm Bureau Federation. He is a media con-sultant and a retired staff member of the NewMexico Farm and Livestock Bureau.

ERICK NESS

guest columnist

It feels like old times on theother side of the world.

After the ill-fated G20meeting in Seoul, where Presi-dent Obama botched an oppor-tunity to secure an attractive

free-tradedeal,KatiSuomi-

nen of the German MarshallFund warned of an “economicCold War.”

Then North Korea revivedmemories of the real Cold Warwhen it launched an unpro-voked artillery attack on aSouth Korean island, killingfour and raising tensionsthroughout the region.

But not all of the news fromAsia was bad. Some of it wasdownright encouraging —especially the reports that saidJapan may try to step away

from agricultural protectionismand strengthen its trade tieswith the Pacific nations, includ-ing the United States.

Now that’s an example ofchange we can believe in.

Japan is one of the wealthi-est nations on the planet, with aprosperity built on the twinfoundations of a skilled work-force and the ability to sell itsproducts to the rest of theworld.

Yet the island nation’s econ-omy isn’t growing like it should,and now even its conservativeleadership has come to supporttrade liberalization. Prime Min-ister Naoto Kan has indicatedthat he would like to lead Japaninto the Trans-Pacific Partner-ship (TPP), a multilateral zero-tariff trade alliance.

Brunei, Chile, New Zealand,and Singapore already belongto the TPP. The United States,

Australia, Malaysia, Peru, andVietnam are negotiating to join.

The addition of Japan woulddo nothing but add to theTPP’s growing clout. Obamahas said he would like to seethe current round of TPP talksconclude by November 2011,when he hosts a meeting ofPacific nations in Hawaii.

It remains to be seen howfar Kan can go.

Yet the potential forimprovement is enormous —for both the Japanese and theAmericans.

Japan already relies on therest of the world for what iteats: About 60 percent of thecalories its citizens consumecome from imports.

Despite this, the country hasthrown up high barriers tofood. Beef faces a special dutyof 38 percent. That’s high, butbutter pays a tariff of 482 per-

cent. Worst of all is rice, withan import tax of 778 percent.

The Organization for Eco-nomic Cooperation and Devel-opment estimates that theabsence of free trade in foodforces Japanese consumers tospend twice what they shouldto feed themselves.

Ordinary Japanese familieshave the most to gain from freetrade. Smart entrepreneurswould benefit, too. As ClaytonYeutter and Warren Maruyamapoint out in a recent article forthe Wall Street Journal, Japanwon’t compete in the produc-tion bulk food commodities,but surely it can dominateniche markets that involve spe-cialty foods such as sushi.

Who better to satisfy theglobal demand for Japanesecuisine than the Japanese?

American farmers havemuch to gain as well. We

already sell many agriculturalproducts to Japan: almost $12billion last year. We exportmore corn to Japan than to allof our foreign customers in theWestern hemisphere combined.

This is an old relationshipthat dates to the early days ofthe Cold War..

In the 21st century, we cando even better. If Japan joinsthe TPP and these multi-coun-try talks realize their full poten-tial, we’ll have our chance.Many tariffs would vanishimmediately and even the mostsensitive ones involving dairyproducts and rice possiblywould disappear over time.

Tim Burrack raises corn and soy-beans on a northeast Iowa familyfarm. He volunteers as a boardmember of Truth About Trade andTechnology, whose website is{www.truthabouttrade.org}.

TIM BURRACK

guest columnist

Could the Japanese support a new tariff lift?

It’s law and order on the border

farmweek december 13 2010

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