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Monday, July 27, 2009 Two sections Volume 37, No. 30

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

AGRONOMY DAY, typicallythe third Thursday in August, thisyear it will be a week earlier to avoidconflict with other events. ............10

CRUDE OIL PRICES for thesecond year in a row may havepeaked for the year in July, accord-ing to an analyst. ..............................14

THE CATTLE MARKETmay be poised to bounce backfrom summer lows as market-readysupplies of animals get tight. ......12

IFB board unanimously opposes climate proposalBY MARTIN ROSSFarmWeek

The Illinois Farm BureauBoard of Directors last weekunanimously opposed U.S.House-approved “cap-and-trade” legislation that the boardbelieves will drive up costs forIllinois farmers and consumersalike.

Board members indicatedspecific climate change legisla-tion recently approved by theHouse was what they foundobjectionable.

As the Senate Ag Committeeconducted hearings on theimplications of the House“Waxman-Markey” bill —which would cap utili-ty/industry greenhouse gas(GHG) emissions — IFB Presi-dent Philip Nelson cited projec-tions that the measure couldboost Illinois farm energy-inputcosts by $11,000 to $15,000annually over the next decade.

Nelson sees an “even biggeroverarching issue”: The effectof proposed emissions restric-tions on consumer commodityand food prices. In exchangefor higher energy and foodcosts, University of Illinoiseconomist Bob Thompsonargued the House plan likely“will have negligible impact onreducing (carbon dioxide).”

“We had a long and healthydebate on this, weighed the mer-

could prove “more extremethan the House version.”

And even a “weakened” cli-mate bill coming out of theSenate easily could lose out tothe House plan in joint confer-

ence committee debate,Johanns warned.

Johanns is pushing theadministration to release

See Climate, page 2

its, the pros and the cons, and atthe end of the day, we’re reallyconcerned that as farmers, we’re

price takers, not price makers(under this bill),” Nelson said.

“We look out 10 years intothis bill, and we can see farmersin Illinois paying between $35and $50 an acre more to put anacre of corn in the ground.”

The American Farm BureauFederation (AFBF) also oppos-es the House bill.

Sen. Mike Johanns (R-Neb.)suggested the House bill“stands very little chance ofgoing anywhere on the Senateside.”

However, “I can’t give youany assurance at all that cap-and-trade will disappear —quite the opposite,” Johannswarned producers in a telecon-ference last week.

Instead, separate Senate cli-mate proposals likely willemerge under the direction ofSenate Environment and Public

Works Chairman Barbara Boxer(D-Calif.), the former ag secre-tary maintained.

As the Senate Ag Committeegeared up for climate hearings,he warned Boxer’s measure well

BY DANIEL GRANTFarmWeek

Farm managers and rural appraisersexpect a large intergenerational transfer offarmland to occur in coming years.

The 2007 U.S. Ag Census found thenumber of farm operators 75 years orolder increased by 20 percent since 2002while the average age of farmers duringthat time increased from 55.3 to 57.1years.

The statistics suggest the baby-boomergeneration in coming years will inherit alarge number of farmland acres, accordingto Jerry Warner, president of the Ameri-can Society of Farm Managers and RuralAppraisers.

But the “jury is still out” as to whattype of impact the transition will have onthe farmland market, he told FarmWeekduring the International Farm Manage-ment Congress held last week at IllinoisState University in Normal.

“My thinking is a segment of the inher-

itors will keep it (theland) by virtue of thefact that the investmentwill be more significantto them,” Warner said.“They may not have thecash pressure they wouldhave if they inherited it20 years ago.

“On the flipside, notmany of them grew up

on the farm,” he contin-ued. “Therefore, somemay be more likely to sellit because they don’t havethe tie (to agriculture).”

Either way, the situationlikely will lead to a greaternumber of absenteelandowners and anincreased need for farmmanagers and consultants,according to Fred Hepler,president of the Illinois Society of Profes-

sional Farm Managers and Rural Appraisers.Illinois leads the nation in the percent-

age of farmland owned by absentee own-ers (62 percent). The national average is38 percent.

“The number of people (in agriculture)at retirement age is much higher thanthose entering the business,” said Hepler,who also believes more investors willenter the farmland market because offarmland’s steady returns and the fact thatit provides a hedge against inflation. “So Ithink there will be a lot more land ownedby absentee owners.”

Meanwhile, farm management likelywill become more technically oriented anda great deal more analysis will be neededto determine the best way to turn a profiton each farm in the future, he said.

“I feel there is tremendous potentialfor our industry as we have this transitionof wealth,” said Hepler, who also recom-mended landowners of all ages have anappropriate transition plan in place.

Large generational transfer of land expected in future

Jerry Warner

Fred Hepler

GLOBAL PERSPECTIVE

Tim Bittner, right, a rural Bloomington corn and soybean farmer, gestures as he describes the capa-bilities of his planter to visitors from around the world who were in Illinois last week for the Interna-tional Farm Management Congress. The event featured farm visits around the state along with toursof Pioneer corn processing and soy research facilities, the Monsanto Learning Center in Monmouth,the USDA ag research lab in Peoria, Deere and Co. in East Moline, Big River Resources ethanol plantin Galva, and the Chicago Board of Trade, among other stops. Read inside for more stories from thecongress. (Photo by Ken Kashian)

FarmWeekNow.comTo listen to President Nelson’sc o n c e r n s a b o u t c l i m a t echange legis lat ion, go toFarmWeekNow.com.

MEIJER EXPANDING LOCAL FOOD LINK —Hank Meijer, co-chairman and chief executive officer ofthe Meijer super-center chain, last week announced thecompany will buy more locally grown produce.

Currently, the Meijer company handles more than 75varieties of locally grown fruits and vegetables. TheHome Grown initiative helps keep an estimated $50 mil-lion in the local communities near the chain’s 189 stores,according to the company.

Meijer said his company will work with more than 65local growers throughout Illinois, Michigan, Ohio, Indi-ana, and Kentucky.

Last year, the Michigan-based company sold morethan 20 million pounds of apples, 1 million pounds ofasparagus, and 10 million ears of sweet corn — allgrown in Michigan.

WILD HORSE ADOPTION IN BLOOMING-TON — On Aug. 7-8 at the Interstate Center, Bloom-ington, the U.S. Department of Interior’s Bureau ofLand Management (BLM) will offer for adoption about40 wild horses ranging from yearling to 5 years old.

The adoption will be on a first-come, first-servedbasis. Adoption hours are 8 a.m. to 5 p.m. Sunday, Aug.8. Animals may be previewed from 2 to 7 p.m. Saturday,Aug. 7.

A fee of $125 for animals less than 3 years of age and$25 for animals 3 and older is required. Adoptees maytake a second horse for an extra $25 if they pay $125 toadopt the first animal.

Applications to adopt will be reviewed starting Aug. 7and may be submitted until Aug. 8. For more informa-tion, call 1-866-468-7826 or visit the BLM website at{www.wildhorseandburro.blm.gov}.

HIGHWAY PROVISIONS EXTENDED — TheSenate Commerce, Science, and Transportation Commit-tee last week approved an 18-month extension of cur-rent highway safety programs authorized under the Safe,Accountable, Flexible, Efficient Transportation EquityAct: A Legacy for Users (SAFETEA-LU), commonlyknown as “the highway bill.”

The Senate Environment and Public Works Commit-tee also approved an 18-month extension of highwayand bridge programs authorized by SAFETEA-LU andauthorized $41 billion for fiscal 2010 and $20.5 billionfor fiscal 2011 for the programs. The proposed exten-sion would take effect when the current law expires onSept. 30.

The proposals will be merged with a Finance Com-mittee provision that would transfer $20 billion from theTreasury to the Highway Trust Fund, which is expectedto be depleted as early as next month. The administra-tion supports extending the current law and postponingreauthorization of highway programs until after 2010congressional mid-term elections.

FarmWeek Monday, July 27, 2009

(ISSN0197-6680)

Vol. 37 No. 30 July 27, 2009

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

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

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

Address subscription and advertisingquestions to FarmWeek, P.O. Box 2901,Bloomington, IL 61702-2901. Periodicalspostage paid at Bloomington, Illinois, andat an additional mailing office.

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© 2009 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

Linda Goltz ([email protected])Business Production Manager

Bob StandardAdvertising Sales Manager

Richard VerderyClassified sales coordinator

Nan FanninDirector of News and Communications

Dennis VerclerAdvertising Sales RepresentativesHurst and Associates, Inc.P.O. Box 6011, Vernon Hills, IL 600611-800-397-8908 (advertising inquiries only)

Gary White - Northern IllinoisDoug McDaniel - Southern IllinoisEditorial phone number: 309-557-2239Classified advertising: 309-557-3155Display advertising: 1-800-676-2353

Quick TakesGOVERNMENT

BY KAY SHIPMANFarmWeek

The Illinois State Board of Education(ISBE) last week during an emergency budgetmeeting cut in half funding targeted for agricul-ture education programs.

About $400 million was cut from targetedprograms, but the ISBE was able to increase theper-pupil funding level and offset other cuts sothe total education budget decreased by $180million.

Ag education will now receive $1.69 millionin funding used as an incentive for agricultureeducation programs that meet quality standards.

“It will be a significant reduction in Facilitat-ing Coordination in Agricultural Education(FCAE) services and in the dollars that schoolsreceive directly for agriculture education pro-grams,” said Jay Runner, FCAE coordinator.

In addition, funding for career and technicaleducation, including all vocational educationprograms, was held steady at last year’s level.

ISBE reduces ag ed,vocational ed funding

Continued from page 1sources of information that it claims support its“extravagant promises” that agriculture willbenefit from cap-and-trade. One thing he saidhe has gleaned from analysis to date is “thatinput costs are going to go up for agriculture.”

A USDA report released last week suggests netfarm income would decrease by less than 1 per-cent in the short term and between 3.5 and 7.2percent from 2027 to 2033 under the bill, but thatbenefits from an ag emissions “offsets” marketlikely would overtake costs by 2050.

But the USDA study pins a major share of pro-jected offsets revenue to tree plantings potentially onproductive cropland — a major issue for Johanns.

“There are all kinds of studies and projectionsout there, but I think the one certainty is thatinput costs would go up for agriculture,” he said.

“That would be everything from gasoline todiesel, electricity, fertilizer, transportation, foodprocessing. Literally from farm to fork, everythingis going to be impacted in terms of upward costs.

“USDA acknowledges this; I think the Obamaadministration acknowledges that input costswould go up. But the administration has veryconsistently held to the line that even thoughinput costs are going up, don’t worry — you aregoing to get more money from (marketable agemissions credits), and so the input cost increaseshould be offset.”

Johanns sees a number of potentially “devas-tating” ripples for agriculture beyond immediatecosts, including trade disputes and “real serious”

retaliation from other countries impacted by U.S.proposals (see page 3).

Johanns also noted the House bill’s “hugelyexpensive” plan to “subsidize” international rainfor-est preservation. He told FarmWeek the conceptwas “their idea of trying to get other countries tocome on board,” but noted that India and China —both major global emitters — have steadfastlyrejected the idea of adopting their own carbon caps.

Nelson reported the bill’s purported long-termemissions reductions are premised in part on the con-struction of 261 new nuclear plants across the U.S.

If those plants failed to materialize (a very realpossibility, given widespread congressional oppo-sition to nuclear power) he anticipates “a realrush toward natural gas,” and that would impactcrop drying and fertilizer costs as well as long-term oil prices.

Senate Ag Committee Chairman Tom Harkin(D-Iowa) argued India, China, and Brazil “have tobe put in the same category as we are” in termsof the need for climate reforms.

Amid uncertain cost-benefit implications and pre-dictions of a World Trade Organization challengefollowing the measure’s passage, Nelson lobbied Illi-nois’ senators for “off-ramp” provisions during arecent trip to Washington for an AFBF meeting.

“Ten years from now, if we don’t site thenuclear power plants, if we see that a number ofthe mechanics of this bill are not coming intofruition, we could take a time-out (from federalrequirements) to try to address that withoutupsetting the whole economy,” he explained.

Climate

BROWN COUNTY INSTITUTE

Brown County Farm Bureau last week hosted a Summer Ag Institute for teach-ers from McDonough, Fulton, and Hancock counties. Andy Baker, a WesternIllinois University professor, also attended. Here, Larry Hanold from Ridge View

Winery explains to the teachers the reason for putting netting over the grapes. The teachers also toured TimewellTile and DOT Foods Inc. (Photo submitted by Kathy Knight, administrative assistant for Brown County Farm Bureau)

GOVERNMENT


Capital bill helping U of I build ‘next-generation facility’

This architect’s drawing shows the future Integrated Bioprocessing Research Laboratory at the University ofIllinois Urbana-Champaign campus. The new lab will face Pennsylvania Avenue. (Drawing courtesy U of I)


University of Illinoisresearchers will test new dis-coveries on a pilot scale in aunique laboratory to be builtby the College of Agricultural,Consumer, and Environmen-tal Sciences (ACES).

The General Assemblyincluded about $20 million forthe one-of-a-kind facility inthe capital bill recently signedby Gov. Pat Quinn.

The Integrated Biopro-cessing Research Laboratory(IBRL) has been in the plan-ning stage for several years,according to Hans Blaschek,a food microbiology-biotech-nology professor and direc-tor of the Center forAdvanced BioenergyResearch.

“There is no facility likethis in the United States.Ours really is a next-genera-

tion facility,” Blaschek toldFarmWeek.

The IBRL facility has beendesigned to accommodatemany different types of scien-tists and technology, Blaschekstressed.

The facility will allow

researchers to test bench-scalediscoveries on a pilot-scalelevel, examining their technol-ogy before it moves into thecommercial market.

Other university pilot test-ing facilities exist, but none isable to accommodate the vari-

ety of researchers and tech-nologies envisioned for IBRL,according to Blaschek.

For example, one U of Iresearcher will test thermalchemical conversions ofswine manure using highpressure and high tempera-

tures. A separate ventilationsystem and entrance has beendesigned within IBRL forsuch projects.

Another researcher willtest new milling and process-ing technology for ethanoland value-added byproducts.

Blaschek anticipated othertechnologies will involve pre-treatment of cellulosic mat-ter, enzyme treatment, andfermentation.

As a researcher, Blaschekhimself could have used anIBRL a few years ago.

“I had technology forbioethanol that worked beau-tifully on a bench scale, but Iwasn’t sure what would hap-pen on a larger scale,” heremembered.

Today a company is com-mercializing his technology,but that step might havecome sooner if IBRL hadexisted, he added.

BY MARTIN ROSSFarmWeek

Bob Thompson offers sobering predictionsabout the long-term impact of climate change leg-islation on world ag production.

The University of Illinois economist said hefeels House “cap-and-trade” legislation not onlywould do little to reduce greenhouse emissions, butlikely would spur global trade protectionism aswell.

The tradeimplication ofclimate policy isa key issue forSenate FinanceChairman MaxBaucus (D-Mont.), wholikely will beinfluential in thecap-and-tradedebate.

Thompson cited concerns that the House planwould prove “the Smoot-Hawley of the 21st Cen-tury,” referring to 1930 legislation that raised torecord levels U.S. tariffs on more than 20,000imported goods.

Consequent retaliatory tariffs by other countriesreduced U.S. exports and imports by more thanhalf, contributing to the severity of the GreatDepression.

Thompson warned the House “Waxman-Markey” climate bill would move the U.S. into “thevanguard of rising protectionism,” potentiallyspurring a flurry of international retaliation. Aresulting decline in trade would delay economicrecovery necessary to “getting us out of this globaldownturn,” he told FarmWeek during the Inter-national Farm Management Association Congresslast week in Normal.

One particularly contentious issue is a last-minute amendment inserted into the House bill,which would tax U.S. imports of energy-intensiveproducts from countries that refuse to adopt car-bon-reduction measures.

Canada is working with the U.S. to establishsimilar greenhouse reduction targets, and Canadian

environment minister Jim Prentice denounced theHouse provision as “green protectionism.”

“The ‘Buy American’ provisions of the (federal)stimulus bill were really the beginning of ourincreasing protectionism in this country,” Thomp-son told FarmWeek.

“We’ve seen Canada rattling its saber and threat-ening retaliation, which is exactly what happenedafter the Smoot-Hawley Tariff Act was passed

back in the ‘30s.Other countriesretaliated, wecounter-retaliated,and internationaltrade went into adownward spiral.

“Between thestimulus bill andthe Waxman-Markey bill, I fear

there’s significant risk of rising protectionism, firstin this country and then through retaliation fromother countries, which will hurt our export poten-tial.”

Waxman-Markey’s import “tariff ” was designedto offset projected costs of new emissions limitson U.S. industries and energy providers. Further,multinational companies with U.S. operationswould be required to comply with emissions capsbeginning in 2020, raising additional concerns.

At the same time, Stanford University econo-mist and International Food and AgriculturalTrade Policy Council member Tim Josling notedHouse exemptions for countries that already havejoined multilateral climate agreements and eligibledeveloping countries.

Canada fears a potential shift of energy-inten-sive industries (such as steel or paper) to emergingeconomies exempted under the House bill.

“The main question is, do you try to make com-panies in other countries conform with the sameregulations U.S. companies have to,” Josling toldFarmWeek.

“Or do you put up tariffs against imports fromcountries that don’t have the same sort of regula-tions?”

Trade climate threatenedunder the House plan?

‘Between the stimulus billand the Waxman-Markeybil l , I fear there’s signif i-cant risk of rising protec-tionism.’

— Bob ThompsonUniversity of Illinois ag economist

Capital bill includes $50 millionfor broadband loans, grants

The recently passed capital bill provides $50 million to theIllinois Department of Commerce and Economic Opportunity(DCEO) for broadband-related grants and loans.

The state plans to offer funding commitments to cover partof stimulus-funded broadband projects on a first-come, first-served basis until all state funds have been committed. Thestate application deadline is Aug. 5.

Matching fund commitments will be available to qualifiedorganizations in time for the Aug. 14 deadline for the firstround of federal funding. Illinois officials expect, but cannotguarantee, that state funding will be available for all three feder-al funding application rounds.

State officials plan to release the funding application Tuesdayand have set an Aug. 5 deadline for completed applications.Decisions will be announced Aug. 11.

State officials ask entities considering applying for federalbroadband funding, especially those planning to request statefunding, to send an e-mail notice as soon as possible [email protected].

Questions about this opportunity should be e-mailed [email protected]. For more details and updates, goonline to {www.broadband.illinois.gov}.

The capital bill that was signed by Gov. Pat Quinn includedauthorization for 80,000-pound truck weigh limits — but notuntil 2010.

Below, FarmWeek readers will find answers to some basicquestions from Kevin Rund, Illinois Farm Bureau, senior direc-tor of local government. More information will be published inthe future.

Question: What about the new law and how could it affectpermits? When does it take effect?

Rund: After nearly three decades of operating under dual“Bridge Formulas,” Illinois farmers are about to experiencewhat farmers in the other 49 states already have — a singlestatewide 80,000-pound weight limit. The legislation authorizingthe “Federal Bridge Formula” was part of the capital bill; how-ever, the weight limit change does not take effect until Jan. 1,2010.

During this fall’s harvest, local roads will still be restricted to“State Bridge Formula” weights that top out at 73,280 pounds.

Even under the new law, local road jurisdictions will retainauthority to post roads for a lesser weight limit. It is anticipatedthat many will allow the new limits to take effect. But some localroads are likely to be posted for the current lower limits year-round.

New truck weight limit starts 2010

WIND ENERGY


Gabriel Alonso, chief executive officer of Horizon Wind Energy, says his company is serious about develop-ing wind energy in Illinois. Alonso dedicated the $200 million Rail Splitter Wind Farm in Logan and Tazewellcounties last week. (Photo by Kay Shipman)


The top executive of theworld’s third-largest windenergy company has advice forIllinois farmers who areunsure about wind turbines —investigate for yourself.

Gabriel Alonso, chief exec-utive officer of Horizon WindEnergy and chief operatingofficer for Energias de Portu-gal, told FarmWeek skepticalfarmers should gather infor-mation and seek answers fortheir questions from farmerswho have turbines on theirfarms.

“Visit wind farms and ask,‘How is it to have a turbine?How is the company to workwith?’ ” Alonso offered. Lastweek, he dedicated Horizon’sRail Splitter Wind Farm, a$200 million development inLogan and Tazewell counties.

Rail Splitter, Horizon’s sec-ond wind project in Illinois,will produce 100.5 megawattsof electricity from 67 turbines.The farm will generate enoughelectricity to supply 30,000families with power for a year.

Alonso paid tribute to the140 landowners who allowed

Horizon to build turbines ontheir land. “We understand youhave lived here for many gen-erations and will live here formany generations in thefuture,” he said.

The state can anticipatemore wind energy projectsfrom Horizon, according toAlonso. “We are serious aboutIllinois, and we are serious

Horizon CEO to farmers: Seek answers from others

about this area. We have greatwind resources, access to trans-mission lines, and great com-munity support to make thishappen,” he said.

Currently, Horizon windfarms produce 500 megawattsof electricity. The companywill generate another 200megawatts from wind energyprojects in development.

David Sinn, a Delavanfarmer and turkey producers

and Tazewell County FarmBureau member, said he con-tacted Iowa farmers foranswers to questions aboutraising turkeys near wind tur-bines.

Sinn has two Horizon tur-bines on his farmland and saidthe experience has been good.Problems during constructionwere resolved and any damagedtile lines were repaired, he said.

Sinn acknowledged aerial

applicators will charge a 50percent “upcharge fee” toapply pesticides on fields withturbines.

However, Sinn focused onthe broader benefits from thewind energy project. “It’s beena blessing for the upgrade ofour township roads,” he said.“The tax revenue (from thewind project) our school andcounty will receive will take thepressure off landowners.”

Wind farm factsIllinois’ newest wind pro-

ject, Rail Splitter WindFarm, is another milestonein the state’s wind energyindustry. The new windfarm:

• Created 200 jobs dur-ing construction and 10 to15 new full-time opera-tional jobs.

• Covers 11,000 acresin Logan and Tazewellcounties; 100 to 125 acreswere removed from pro-duction.

• Consists of 67 tur-bines, each measuring 389feet tall.

Public backs wind energyprojects — ISU survey

Illinoisans support wind energy development — even if thatmeans turbines would be built near their towns, according to anIllinois State University (ISU) survey.

Randy Winter, ISU agricultural economist, reported prelimi-nary results of a four-region survey about public perception ofwind energy development. Winter spoke at a recent state windenergy conference in Bloomington.

The regions surveyed were: McLean County; Mercer and War-ren counties; Marion County; and Morgan-Scott counties. Win-ter noted researchers were still collecting survey responses.

A total of82.4 percent ofrespondentssupport orstrongly sup-port wind ener-gy developmentin Illinois. Therate of supportremained nearlyunchanged at 82percent whenrespondents were asked about wind development in or near theircommunities, Winter noted.

“There seems to be strong support (for wind development) inthe state,” Winter said.

Among respondents, the top perceived benefit for winddevelopment was reduction of U.S. dependence on foreign oil.Respondents’ top concern was removal of farmland from pro-duction.

As for future electricity sources, respondents ranked wind andsolar as their top choices.

Winter also surveyed people about climate and energy issues.About 70 percent of respondents agree or strongly agree thathumans have had an impact on the Earth’s climate; however,only 43 percent support programs to address climate change.

Asked about renewable energy standards, 56 percent ofrespondents said they support such standards. “I think there isgrowing acceptance of federal renewable energy standards,”Winter said. — Kay Shipman

A law recently passed by theGeneral Assembly and signedby Gov. Pat Quinn will keepIllinois competitive in windenergy development, accordingto a business developmentexpert.

The new law establishes anew program that allows ahigh-impact business “tobecome its own enterprisezone,” said Kyle Barry, aSpringfield attorney who for-merly was with the Depart-ment of Commerce and Eco-nomic Opportunity (DCEO).Barry spoke at a recent statewind energy conference inBloomington.

Enterprise zones and theaccompanying incentives havebeen critical to the state’s windenergy industry.

“Every major Illinois (windenergy) project has located inan enterprise zone, mainlybecause the sales and use taxexemptions offered substantialsavings.

“Without that, Illinoiswould be at a competitive dis-

advantage because all the sur-rounding states exempt windgeneration equipment from thestate sales tax,” Barryexplained.

The new law makes Illinoisenterprise zone rules moreapplicable to a wind energyproject. Under that law, a windenergy developer may applydirectly to DCEO for consid-eration as a high-impact busi-ness, instead of applying tolocal governments. Stateagency approval also willremove several hurdlesrequired for a local govern-ment to expand its enterprisezone to include a wind farmproject, Barry said.

The new law does notrequire a high-impact businessto create a certain number ofjobs or build in an economical-ly depressed area — enterprisezone requirements that havebeen a challenge for wind pro-jects, Barry said.

However, the law doesrequire high-impact business-es to pay prevailing hourly

wages, he noted.A major incentive for wind

energy developers in a high-impact business zone is theexemption from paying the6.25 percent state sales or usetax on millions of dollars ofequipment, Barry said.

The new law also will bene-fit counties that have goodwind resources but don’t havean enterprise zone, he added.

However, wind developersthat build in a high-impactbusiness zone will not receivethe following: an automaticacross-the-board real estate taxabatement, investment taxcredit, jobs tax credit, orexemption on personal proper-ty used in the manufacturingprocess or at a pollution con-trol facility.

Those incentives are offeredfor projects that build in anenterprise zone.

However, “the big ticketitem is the sales and use taxexemption for wind farms,”Barry concluded. — KayShipman

New law helping state keep wind development edgeA wind farm in Bureau County. (File photo)

‘There seems to be strongsupport (for wind develop-ment) in the state.’

— Randy WinterIllinois State University ag economist

AG INCOME


Lower grain prices, economy pressure land values

ISPFMRA: Cash rents projected to decline 5 percentBY DANIEL GRANTFarmWeek

Farmland values for thefirst half of 2009 softened andthe volume of sales declined,according to a mid-year surveyreleased last week by the Illi-nois Society of ProfessionalFarm Managers and RuralAppraisers (ISPFMRA).

ISPFMRA members in thesurvey indicated the averageprice of excellent quality farm-land the past six monthsdeclined 2.3 percent ($171 peracre) while the average priceof fair quality farmland

dicted the recent trends willcontinue throughout the year.

“Members generally thinkland prices will remain steadyor get a little softer, but nobodythinks they’ll take a severedrop,” Swires said. “Land is stilla solid investment.”

The drop in grain prices sofar this year also is puttingdownward pressure on cashrental rates. ISPFMRA membersas of July 1 believe cash rentalrates for 2010 could decline byan average of 5 percent.

Cash rent levels for 2010were estimated at $260 per

acre for excellent land, $210per acre for good land, $160per acre for average land, and$130 per acre for fair qualityland.

However, Swires noted cashrental rates vary greatly bylocation, depending in part oneach farmer’s marketing skills.Rates also could fluctuatefrom the estimates in comingmonths based on the directionof the commodity markets.

“It’s still early,” Swires saidof cash rent negotiations.“Things will get a lot moreserious come October.”

slipped by 5.4 percent ($225per acre).

Average land values in thestate as of July 1 were estimat-ed at $7,200 per acre for excel-lent ground, $6,300 per acrefor good land, $4,900 per acrefor average land, and $4,000per acre for fair quality land.

“The economy and grainprices in particular” are thekey factors pressuring landvalues, said Bob Swires ofSwires Land and Managementof Danville, during a newsconference Friday at theInternational Farm Manage-

ment Congress in Normal. “The survey was conducted

(in recent weeks) right as wewere experiencing a dramaticdrop in grain prices.”

The volume of farmlandsales also declined the past sixmonths, according to 88 per-cent of ISPFMRA memberswho responded to the survey.Swires believes many potentialsellers are holding onto landbecause they don’t know whatto do with the money duringthe current economic reces-sion that a sale would generate.

ISPFMRA members pre-

Aug. 14 enrollment deadline

ACRE webinar, landlord information availableBY MARTIN ROSSFarmWeek

As the Aug. 14 deadline forACRE (average crop revenueelection) enrollment nears,university and ag industryexperts are ramping up thelearning curve for producersand their landlords.

ACRE is an optional safetynet program that protectsagainst price/production loss-es on a commodity-by-com-modity basis.

Under the program, grow-ers are eligible for coverageequaling 90 percent of a two-year national average programguarantee price times a“benchmark” state yield that

have legal power of attorneyto make unilateral programdecisions.

However, because ACREenrollment is binding for theduration of the 2008 farm bill,through 2012, Yoder recom-mends tenants always commu-nicate their intentions to thelandowner.

“If a farmer has a pow-er of attorney and signsup a particular farm forACRE, and .. . the absenteelandowner isn’t aware ofit, two years from now, ifthat landowner decides toget a new tenant or sellthe land or he passes awayand the land goes to his

heirs, they have ACRE ontheir land and could havesome issues,” Yoderadvised.

Tenants and landlordsshould consider whetherattaching ACRE to an individ-ual farm is a potential positiveor a negative in selling land orattracting future tenants, headded.

As of last week, some 2,520farms nationwide wereenrolled in the 2009 ACREprogram. Illinois reportedlyleads the nation with morethan 540 approved ACREcontracts, followed by Nebras-ka, Iowa, Ohio, South Dakota,and Indiana.

factors average yield per plant-ed acre of each commodityover a five-year period, drop-ping high and low yields.

Illinois Farm Bureau,USDA’s Illinois Farm ServiceAgency (FSA), and the Univer-sity of Illinois are offeringthree “webcasts” providinginformation about ACRE, at{www.farmdoc.uiuc.edu/presentations/index.asp}.

In addition to the presenta-tion “Summary and Benefitsof ACRE,” IFB risk manage-ment specialist Doug Yoderprovides a comprehensive“2008 Farm Bill: ACREOverview” and FSA programdirector Stan Wilson outlines

“ACRE Election and Enroll-ment.”

In addition, the NationalCorn Growers Association hasreleased a bulletin, “ACRE forLandlowners,” which reviewstenant-landowner arrange-ments under ACRE and com-pares potential landownerreturns under ACRE vs. exist-ing farm countercyclical pay-ments.

The guide is available toread or download at{ncga.com/files/pdf/ACREforLandowners.pdf}.

Tenant operators mustobtain the agreement of theirlandowner-lessor to enroll inACRE, unless they already

CULTIVATING ACREEditor’s note: Because of federal delays in imple-

menting the average crop revenue election (ACRE),questions have arisen regarding the optional safety netprogram.

Between now and the Aug. 14, 2009, program sign-up deadline, FarmWeek, with an assist from IllinoisFarm Bureau risk management specialist Doug Yoderand University of Illinois experts, will attempt to pro-vide answers so growers can make an informed decisionon whether to enroll in the program.

If I sign up for ACRE, do I have to comewith past settlement sheets or productionevidence?

Answer: No. Producers who enroll in ACREhave two choices when building their farmbenchmark yield. They may either accept the“plug” yield (95 percent of their county yield)or certify their past production history by sup-plying the Farm Service Agency (FSA) withacceptable production evidence.

If I use the “plug” yield for a certainyear, does that mean I have to use it forevery year?

Answer: No. You can use the higher of yourplug yield or your certified yield for each of thefive years needed, as long as there is no “breakin continuity.” Once a break in continuityoccurs, the plug yield must be used for thatcrop year and all years previous to that year.

What is a “break in continuity?”Answer: A break in continuity occurs when

acreage is reported for a covered commodityand no production is reported.

Can I use crop insurance records to certi-fy past yields?

Answer: Yes. There are many documentsthat can be used to certify past production his-tory, including: settlement sheets; loan deficien-cy payment, or marketing loan records; ware-house receipts or ledgers, scale tickets, orweight slips (unless it’s your own scale); com-puter-generated documents from a licensedwarehouse or elevator as long as it contains thenecessary information; crop insurance yieldproduction (APH) records; crop insurancerecords of loss appraisals; and measured quanti-ties of farm stored production if it was mea-sured by FSA or crop insurance personnel.

In certifying yields, can I get credit forbushels I’ve fed to livestock?

Answer: Yes. There are several options avail-able that producers can use for certification offed bushels. The same is true for grain used forseed, hybrid seed corn production, commingledproduction, or acreage that was silaged, hayed,or grazed, and commingled (mixed)production.

Cover crop innovation focusof WIU organic farm field day

Cover crops will be the focus of the Western Illinois Univer-sity (WIU) organic farm field day Friday, Aug. 7. Advanced reg-istration is required by Aug. 5.

The activity will run from noon to 4 p.m. on WIU’s AllisonOrganic Farm and neighboring Kane Farm in southwesternWarren County.

Participants will receive a CD with information about morethan 40 organic and conventional Midwest grain farmers whoare cover crop innovators. At the field day, certified organic andconventional cover crop seed will be available at discountedprices for farmers who place orders in advance. For informa-tion about ordering seed, contact Andy Clayton at 217-322-2639.

The event will start with a meal featuring local farm prod-ucts. Several presentations will follow the meal, including apanel of organic and conventional farmers who will answerquestions about their experiences with cover crops.

The day will conclude with a walking tour of the researchand production fields.

The field day is open to the public, but registration isrequired by Aug. 5 for the meal. To register, contact Clayton [email protected], 309-298-1172 or 217-322-2639, orWIU‘s school of agriculture at 309-298-1080.

The lunch, expert presentations, and farmer panel will takeplace one mile west of the Allison Farm at the Kane Farm, 22010th St., Roseville. The Allison Farm is one mile east of theKane Farm on the northwest corner of the intersection ofCounty Rd. 20th Ave. N and 20th St. Signs will be posted atboth farms.

More information about WIU’s organic agriculture researchis available online at {www.wiu.edu/ag/organicfarm}.

Bernie Walsh, Durand, Winnebago County: Its mid-Julyand we have had highs in themid-70s. I think we would all wel-come some warmer weather. Wealso had more rain during theweek — 0.9 of an inch onTuesday and up to 0.5 of an inchThursday in scattered stormsnear Rockford. All this has made

it very hard to combine wheat or bale sec-ond-crop hay. We were able to get one roundof wheat done on Monday night (July 20) andwere very encouraged by the yield. It shouldbe very good when it finally dries out. Thecorn is tasseling and this cooler-than-normalweather is good for pollination. The soy-beans seem to be standing still, flowering,but not growing very tall.

Pete Tekampe, Grayslake, Lake County: Another coolweek in Lake County. We got1.25 inches of rain onWednesday and another 1.5inches on Thursday. Corn is get-ting a great color, but needs a lotof sun and heat to beat thedeadline. Saw my first tasselsThursday. Beans are slowly pro-

gressing with some looking great and othersunder 2 inches tall. Winter wheat still needssome heat to dry down. Spring grains arestarting to turn. Need a hot, dry week for thisweek for the Lake County Fair. The fair is atour new location this year from July 28-Aug.2. For more information, go to our website at{www.lcfair.net}.

Leroy Getz, Savanna, Carroll County: Rain for the week,3.3 inches on July 21 and 22.Not bad for days that were sup-posed to have light sprinkles.July’s total, 4.8 inches. Recordcool temperatures have crops ata standstill. Scouting for leaf dis-ease shows few problems in thecorn. White mold in the soy-

beans is a concern. Many soybean fieldshave a lot of volunteer corn. Some hay wasmade between rains, but very little escapedwithout getting wet.

Ron Frieders, Waterman, DeKalb County: Still only a smallpercentage of corn is tasseling.This year, pollination will bestretched out for the next two orthree weeks. I have not seen anyinsect or disease pressure in thesoybeans. Earlier-planted beanslook good. Later-planted oneshave a long way to go. Wheat is

being combined and straw baled. Progress isbeing slowed by scattered showers and thestorm on Thursday in the afternoon with highwinds didn’t help. Midwest average tempera-tures are the coolest in 114 years, and I don’tremember what the crops were like that year.

Joe Zumwalt, Warsaw, Hancock County: It was an unusu-al yet beautiful week for mid-Julyin Western Illinois. Temps hov-ered in the 70s during the dayand 50s at night. So much forglobal warming! Some gentlerains moved through leavinganywhere from 0.5 to 1.5 inchesof rain. It was very much needed

as we were edging on dry and the cropswere showing it. Most of the stress is due tovery shallow-rooted crops. Many fields arebeginning to tassel and some beans areapproaching waist high. Cropdusters arebeginning to get busy with fungicide treat-ments. There have been some Europeancorn borers found, but very few. I will leaveyou all with this little anecdote: In a recentconversation with a neighbor and area pro-ducer, we were talking about the high costand high maintenance of this year’s crop. Hiswife leaned over and said that it must be a“girl crop.” So, no offense to you ladies, butthe 2009 crop will forever be known as a “girlcrop” in my record books!

Ken Reinhardt, Seaton, Mercer County: Up to 1 inch ofrain for the week. Planes are fly-ing fungicides on corn. Conditionshave been favorable for gray leafspot development. There areplenty of Japanese beetlesaround. A neighbor and I took anhour and a half helicopter ridearound our crops. There are few

fields that don’t have drowned-out areas. TheKeithsburg area remains extremely wet, withhundreds of acres of ponds.

Ron Moore, Roseville, Warren County: We have received3 inches of rain in the last twoweeks. Most of our corn is nowtasseled with only the replantedcorn not tasseled. The corn looksgood, despite the poor plantingconditions. There was a lot offungicide sprayed last week. Theairplanes have been spraying

whenever the winds are calm. The soybeansare looking good as well. Most of the postspraying is done and they should start flow-ering soon. The weather has been coolerlately and that has helped the corn andbeans handle the stress from the spring sea-son. Pasture conditions are some of the bestI have seen for this time of year.

Jacob Streitmatter, Princeville, Peoria County: Nice weekin Peoria County. Rain totaledanywhere from more 1 inch tojust a few tenths. I was lucky toreceive about 1 inch. Some cornis tasseling and some is gettingclose, while other corn I have iswaist high. Japanese beetles aregetting bad. So far, they have

only found our fruit trees and other trees.Hopefully, they’ll die before all the cornstarts silking.

Tim Green, Wyoming, Stark County: A very pleasant andcool week. Starting to see a fewtassels. There is a lot of talkabout diseases in the beansand the corn. I don’t know ifanyone is spraying yet.Japanese beetles are startingto pop up here and there in thebean fields. A few guys are

spraying insecticide on them just to stayahead. Otherwise, people are trying to getready for fall and hoping we have some-thing to pick. We need warm weather. It hasa lot of people concerned.

Mark Kerber, Chatsworth, Livingston County: Cool tem-peratures have prevailed thissummer and, for most, plenty ofrain. Have we had any 90-degree days this summer? It hasbeen fair time for many 4-H’ersshowing their projects. Insectpressure during this critical timeof corn pollination has been light

to none. Leaf diseases are not bad yet, asonly a few have sprayed fungicides. Anotherrain would help us as the crops are reallypulling moisture out of the ground. Soybeansare growing, but have a long way to go.Markets have done their summer retreatregardless of acres and conditions.

Ron Haase, Gilman, Iroquois County: Farm activities forthe week included spraying her-bicides in soybean fields, scout-ing cornfields for leaf diseases,spraying fungicides in cornfields,and mowing roadsides. Mostcornfields in the area are any-where from the V-14 to the R-2growth stage. I did see my first

rootworm beetle as I was scouting for leafdiseases in our corn, but that is the only bee-tle I have seen. Japanese beetles have beenless of a problem at this point. More fungi-cide application took place last week, assome of the corn planted from May 9 toMay 12 has entered pollination. The $1 dropin corn prices has altered the decision-mak-ing process. Most of the corn in this area stillhas not pollinated. Area soybean fields arefrom the full bloom (R-2) to the beginningpod growth stage (R-3). Local closing pricesfor July 23: nearby corn, $3.19; new-cropcorn, $3.12; nearby soybeans, $10.30; new-crop soybeans, $9.05.

Brian Schaumburg, Chenoa, McLean County: Anotherweek of relatively cool andcloudy conditions leaves us towonder when summer willarrive. Seventy-five percent ofthe corn was pollinating lastweek. Aerial fungicide applica-tions are warranted as gray leafspot is developing. Average crop

revenue election (ACRE) sign-up remainslow as the Aug. 14 deadline approaches.Get the facts, not ill-informed speculation!See you at the McLean County Fair. Corn,$3.20; fall, $3.14; soybeans, $10.27; fall,$8.97; wheat, $4.37.

Steve Ayers, Champaign, Champaign County: We’recoasting through July with moder-ate temperatures, but we arestarting to look for a rain after adry week. We have chances forrain Tuesday with temperaturesremaining in the 60s to 80s. Near-perfect tasseling conditions con-tinue and beans are blooming, but

are extremely short. Crop scouts are monitor-ing gray leaf spot in corn and soybean defolia-tion primarily from Japanese beetles. See youat the Champaign County Fair this week.

Wilfred Dittmer, Quincy, Adams County: A nice, clearmorning here Friday after a fewpartly cloudy days and coolweather. We did pick up 2 inchesof rain in the gauge on Tuesday,which brings our total for July to3 inches thus far, and the cropssure did soak it up. Some areasin the county received more than

3 inches and some were less fortunate with1 inch or less. Corn and beans in generallook good, but most beans still have a longway to go before they get to the bin. Weedsalso are coming fast and sprayers will have tokeep moving to keep ahead of the game. It’sfair week in our county this week. Where didthe summer go?

Harry Schirding, Petersburg, Menard County: No rainfalllast week. Total for July so far is3.71 inches. Normal rainfall forJuly is 3.53 inches. Pollination,which will be spread out over sev-eral more weeks, continues withfew problems. A number of corn-fields have been sprayed by air-plane for fungal leaf diseases.

Most corn leaf lesions are gray leaf spot,although there are other leaf diseases present.A dry week was good for hay and the remain-ing straw harvest. Double-crop soybeans aregrowing slower than usual, due to the cool tem-peratures. Volatility and lower prices continueto be an ongoing concern. The Menard CountyFair had good weather, good attendance, andwas considered a success. Corn nearby,$3.16, up 2 cents; soybeans nearby, $10.32, up2 cents; January corn, $3.17, up 11 cents;January soybeans, $9.28, up 48 cents.

Tom Ritter, Blue Mound, Macon County: We’ve had aweek of dry weather. Tuesday’spredicted rains fizzled and barelywet the roads. We’re not hurtingfor moisture, but the crops have along way to go to be ready, andwe’d hate to start missing show-ers at this point. Overall, corncontinues to improve a little bit in

looks. Fungicide spraying has subsided as 5percent of the corn that was planted in Aprilhas been sprayed. Corn planted in mid- tolate-May or at the end of June has notadvanced enough for fungicides to besprayed. Soybeans also continue to improve.Beans planted in late May and early June aregetting close to closing the row but at variedheight, depending on the planting date.

David Schaal, St. Peter, Fayette County: We finally had adry week here. It has, however,been unusually cool for the endof July. Temperatures have beendown in the upper 50s in themorning. Soybeans in the areado not have a very good color.They look really pale. Many areafarmers have been spraying soy-

beans, but are having a hard time killing whatis out there. The Roundup gene may be on itsway out. Some corn around the area is begin-ning to tassel.

Ted Kuebrich, Jerseyville, Jersey County: We had rain theweekend of July 18 that mea-sured about 0.5 of an inch. Thebeans are starting to bloom. Thecorn is at different stages ofgrowth, with some tasseled, oth-ers just starting to tassel, andstill others just about waist high.The cool temperatures that we

have been having the last couple of weekshave caused growth to slow in the late beans.The Japanese beetles have moved from ourgardens and trees to the corn and beanfields. I was out looking at our beans to seehow they are blooming and found manyJapanese beetles. Cash corn, $3.35; newcorn, $3.13; January corn, $3.24; cashbeans, $10.41, new beans, $9.27, Januarybeans, $9.37; cash wheat, $4.24.

CROPWATCHERS


Jimmy Ayers, Rochester, Sangamon County: On Sundayevening (July 19), Springfield set anew record low of 52 degrees.North of us in Lincoln, the long-standing record of 48 degrees wastied. Chicago is set for its fourth-coldest summer in history. Globalwarming is certainly not affectingour area. We had no rain at our

place last week, but some areas received 0.2of an inch. The beans seem like they are com-ing along really well. Some of them are reach-ing up to a little more than knee-high, andsome are waist high, but not many. Corn polli-nation is going on in many fields. Not as manybeetles now as we have had in earlier weeks.Quite a bit of hay was put down and a little bitof mowing is going on. Working on equipmentfor harvest is where we are spending most ofour energy at this time. Check out the countyfairs — several of them are going on. Don’t for-get to take a little vacation this summer to helpyou have a safer harvest.

Dan Meinhart, Montrose, Jasper County: Showers were inthe area several days last weekleaving little or no measurableprecipitation. Corn spraying iswrapped up, although sprayingbeans is still in progress. USDAdecided to resurvey corn andgrain sorghum acres. In earlierreports, I stated preventative

planting on corn has been taken on thou-sands of acres over a large area. On many ofthese acres, nothing has been planted. Manyexpect USDA to find out the corn acres plant-ed are much less than previously reported.

Kevin Raber, Browns, Wabash County: Rainfall amounts of1.5 inches or more fell this pastweek. There was some floodingand a lot of standing water. Theother story for the week was thelow temps. I think we set severalnew records for daytime low tem-peratures. The corn needs a littlemore heat and sun, and I think

the beans don’t like the saturated soils. Ourtemps are going up this coming week, somaybe it will feel like summer again.

Rick Corners, Centralia, Jefferson County: A week with-out any rain — a first probablysince last year. Little yellowbeans might be looking a tadbetter and actually could havegrown a mil l imeter. Ear l ier-planted corn is in full tassel

Dean Shields, Murphysboro, Jackson County: It looks likeit is time for me to put myplanter away now that it is pastJuly 20. There were a fewacres I was not able to getplanted, so this is another yearof some land not getting plant-ed in Jackson County.However, the corn seems to begrowing real well with the tem-

perature and weather we have here. I thinkpollination went well. There is still a lot ofvariance in the size because of the way itwas planted. Soybeans are coming alongpretty well, too. Wheat field beans are grow-ing well. Things are in a slow pattern.Everybody is doing some spraying andmowing rights-of-way. A few people aregone on vacation. We need it to warm upjust a tad – more than what we’ve had to getsome growing degree temperatures for thecorn.

Ken Taake, Ullin, Pulaski County: It’s been another niceweek weatherwise here in deepSouthern Illinois. We received1.1 inches of rain Tuesday after-noon and night. It came reallynice and slow. It was a wonder-ful rain. Then we received anoth-er 0.3 of an inch Thursday night.The temperatures have been

cooler and it has been really pleasant forhumans and animals. You wonder if the cropsneed a little more heat for growing, but it surehas been nice for us. The crops look goodfrom the road. They are getting tall enoughthat it hides the thin spots and the drownedout spots are hidden. Double-crop soybeansare showing above the wheat stubble.Everything seems to be going pretty well.

Todd Easton, Charleston, Coles County: Crops are work-ing hard to catch up with wherethey would like to be at this timeof the year. And, despite theabnormally cool weather, theyseem to be making progress.The majority of the corn that wasplanted in late May is at, orrapidly approaching, the pollina-

tion stage. The yellow planes have been fly-ing over us on their way to apply preventativefungicide. Many of us still are not sure howmuch of that we will do. It will be interestingto see if what does get applied ends up help-ing the corn yields. Soybeans are in allranges of maturity with the most mature Ihave seen approaching the beginning bloomstage. Keeping the weeds out of the beans isa real chore this year. The sprayers will beworking hard for awhile longer. This weekbrings our county fair, which almost alwaysbrings rain, and that would be good for bothcrops. Drought stress is the last thing thiscrop needs after all it has been through.

Bob Biehl, Belleville, St. Clair County: Showers andstorms passed throughThursday night, but our areareceived very little. Clouds, over-cast days, and cool temps lastweek slowed crop development.Just what we don’t need. Cornplanted three or four days priorto Memorial Day has been tas-

seled for seven to 10 days, but as I drove byThursday on a sunny day, I could really smellthe pollen. No sunshine, no pollination, Iguess. Later corn is anywhere from knee-high to head-high and looks OK since there isplenty of moisture and cool weather. Beansare finally starting to look better. Their feetare finally starting to dry out some. You can’tfind many fields over boot-high yet, though.Lots of spraying of beans this past week. Iknow I can’t seem to get caught up withspraying this year. Maybe by mid-week weshould be done except for the second passon some fields. For the producers down herewith poor crop conditions, it looks like themarkets are going to take away every bit ofprofit from last year and then some.

CROPWATCHERS


now.

Uneven corn, such as this field in Montgomery County, seems to be the norm ratherthan the exception this season in many portions of Illinois due to late planting, denitri-fication, and flooding/water compaction. This field, farmed by Dan Helgen of NorthLitchfield, was first planted May 11, sprayed for cutworms May 26, flooded in early

June, and then had portions replanted June 17. USDA last week responded to vari-able weather conditions by announcing it will ask some farmers for updated plantinginformation for corn so it can make more reliable projections for the Aug. 12 cropproduction report. (Photo by Ken Kashian)

Crop prices expected to stabilize; weather still an issueBY DANIEL GRANTFarmWeek

Crop prices that droppedsince mid-June by more than$1.50 per bushel for corn and$2 per bushel for soybeansmay be near a bottom.

“I think (crop prices) havegone down far enough” inresponse to USDA’s recentprojection of a large harvest,Jack Scoville, vice presidentof Price Futures Group, saidduring a teleconference host-ed by Dow Jones Indexes.

“I expect (prices) to stabi-lize, and we may even seesome small rallies for cornand beans.”

USDA earlier this monthprojected U.S. farmers thisfall will harvest 12.3 billionbushels of corn and a record

3.26 billion bushels of beans.But Scoville believes the

crops are far from made, par-ticularly in the eastern CornBelt where late planting andcool temperatures haveslowed crop development.

USDA last week reported31 percent of the U.S. corncrop was silking compared tothe average of 54 percentwhile 44 percent of soybeanswere blooming compared tothe average of 62 percent.

“All that implies is we’regoing to need about everyday we can get to get thesecrops home” before the fallfrost/freeze ends the grow-ing season, Scoville said.

He projected prices in thenear term would hover in$8.50 to $11 range for beans,

$3 to $3.75 for corn, and $5-plus for wheat.

However, any crop issuesbetween now and harvestcould push prices to as highas $11.50 for beans and$4.25 for corn, according tothe analyst.

Long term, wheat pricescould rebound to as high as$7.50, he said.

On the flipside, recentquality crop ratings for cornand beans should keep a lidon prices near term, he said.

USDA last week rated 71percent of corn and 67 per-cent of beans as good toexcellent. The ratings forboth crops were up 6 per-cent compared to the sametime last year.

“There is an extremely high

correlation between the per-cent of the corn crop ratedgood or excellent at the endof the season and the U.S.average trend-adjusted yield,”said Darrel Good, Universityof Illinois Extension econo-mist.

He said current crop rat-ings suggest an average cornyield as high as 163 bushelsper acre.

“For soybeans, very favor-able weather through Augustwould point to a U.S. averageyield of 44.7 bushels peracre,” Good said.

He noted there is “moreuncertainty about yield esti-mates than normally would bethe case due to the lateness ofthe crop” in the eastern CornBelt.

Overall, the markets have“priced in” large crops, butconsiderable production andprice uncertainty remains,Good added.

MARKETS


Eight-gene corn ‘stack’ granted U.S., Canadian OKsBY MARTIN ROSSFarmWeek

U.S. and Canadian agencieshave signed off on an unprece-dented eight-trait GMO corn“stack” — and unprecedentedallowances for its use.

Monsanto and Dow Agro-Sciences have received U.S.Environmental ProtectionAgency (EPA) and CanadianFood Inspection Agency (CFIA)approvals necessary to commer-cialize SmartStax corn hybrids.

Pending key global importapprovals, Dow AgroSciencesCEO Jerome Peribere antici-pates “aggressive launch” ofthe multi-modal, multi-insect-resistant, herbicide-tolerantproduct in 2010.

The companies project mar-keting SmartStax for use on aninitial 3 million to 4 millionacres, across a range of brandsand ideally in all maturity zones.

SmartStax includes DowAgroSciences’ Herculex 1 andMonsanto’s VT Pro traits, offer-ing corn earworm, Europeancorn borer, southwest corn bor-

technology,” White maintained.Refuge compliance also is cru-

cial under new risk managementopportunities. Miller told Farm-Week Dow AgroSciences andMonsanto have applied toUSDA’s Risk ManagementAgency to include SmartStaxunder the crop insurance “biotechendorsement” (BE), given itspotential to expand producer“risk mitigation.”

BE offers a premium dis-count to producers who plant aminimum 75 percent “triple-stack” corn on each insuredunit.

Growers who violate BErequirements may lose theirendorsement, coverage on BE-endorsed units, and, depend-ing on the severity of viola-tions, all or part of their over-all corn coverage.

er, sugar cane borer, fall army-worm, western cutworm, andblack cutworm protection.

Monsanto YieldGard VTand Dow’s Herculex traits pro-tect against multiple corn root-worm species, and Monsanto’sRoundup Ready 2 and Bayer’sLibertyLink traits provide dualglyphosate/glufosinate herbi-cide tolerance.

Phillip Miller, Monsanto vicepresident of product manage-ment, suggested SmartStaxwould offer a 5 to 10 percentyield improvement over currentvarieties. SmartStax varietieswould be priced in various mar-kets to reflect “the value theybring in that particular geogra-phy,” Miller noted.

EPA also approved reducingBt insect resistance managementrefuge for SmartStax corn froma standard 20 percent non-GMO corn planting per farm to5 percent. Refuge is designed toprevent successive insect genera-tions from developing resistanceto corn varieties.

Illinois Farm Bureau Senior

Commodity Director TamaraWhite was “comfortable” withEPA’s decision, given Smart-Stax’ layered protections. Butshe said different refugerequirements underline theneed for growers to strictly fol-low product-specific guidelines.

“If we’re going to have a 5percent refuge, we need toensure people stick to that 5percent, so we can keep the

Monsanto VP hopefulabout GMO wheat ‘curve’

A Monsanto executive hopes his company’s newlyrevived wheat biotechnology program will help wheat grow-ers catch up with corn and soybean producers in terms ofboth agronomic potential and potentially crucial environ-mental gains.

Monsanto has purchased Montana wheat breeder WestBredLLC, and with access to new germplasm resources, MonsantoVice President Kevin Eblen expects GMO wheat products tobegin hitting the market in the next eight to 10 years.

“Our focus from an R&D standpoint is going to be really ona long-term level — we’ll be working more in what we refer toas ‘second-generation’ traits,” Eblen told FarmWeek at lastweek’s International Farm Management Congress.

“Once we understand the biotech traits themselves, we havethe ability to put them in a lot of different crop species. Sowheat will benefit from a lot of the same things we’ll see incorn, like drought tolerance, nitrogen use efficiency, cold toler-ance, etc.

“It’s more in the eight- to 10-year range before we see a(commercial) product, but it’s a great signal for the wheatindustry.”

Eblen estimates roughly 80 percent of U.S. corn, cotton, andsoybean plantings today include biotech traits that offer“tremendous efficiencies in resource use.” But in the absenceof genetic improvements, he maintained wheat “has really fall-en behind” in some key areas.

Monsanto is a member of the Keystone Alliance for Sus-tainable Agriculture, along with the American Farm BureauFederation. A recent Keystone study cited reductions in green-house gas emissions per unit of corn and soybeans producedbetween 1987 and 2007 but noted a 34 percent increase in per-acre emissions and a 15 percent increase in per-bushel emis-sions in wheat.

“Hopefully, we can get the curve going the other way forwheat,” Eblen said.

Further, while Monsanto’s focus on biotech improvementsin corn, soybeans, and cotton (what Eblen calls “very largefootprint crops”) has offered limited commercial potentialoverseas, Eblen noted “billions of people rely on wheat as theirstaple food source.”

New products thus could benefit and generate markets indeveloping countries, and he sees the possibility of Monsantoeventually directing biotech research toward serious wheat dis-ease concerns around the globe. — Martin Ross

Biobu tano l ke y i n r a i s i n g b l e nd wa l l ?

Biofuels not ‘going away’ Biofuels no longer are “going

away” when oil prices go down,according to DuPont BiofuelsNorth American industry man-ager Dennis Magyar.

During the InternationalFarm Management AssociationCongress in Normal last week,Magyar related DuPont’s three-pronged approach to meeting anational renewable fuels stan-dard (RFS) target of 36 billiongallons of biofuels use by 2022.

DuPont is working with Pio-neer to boost corn yields anddevelop regional feedstocks foruse worldwide, with technologyprovider Danisco to launchcorn cob/switchgrass ethanolplants by 2013, and with energygiant BP to develop advanced“biobutanol.” According toMagyar, that is “the next signifi-cant change” in sustainablerenewable fuels growth.

“In years past, when oil sud-denly went from $20-$30 a bar-rel back to $12 a barrel, theethanol industry went away,”Magyar told FarmWeek.

“We’re in a new environment:

Oil is a depletable resource. Wesaw how easily oil can get upinto the $120-$130-$140 catego-ry. We’re in a global recession:Oil’s still trading between $60and $70. There’s a very goodchance oil’s going to move backinto the $100-plus category.

“As demand increases in theAsian Pacific, China, India, there’sonly so much oil, and oil will goup. There’s a need for the contin-ued growth of biofuels and differ-ent technologies to get us there.It’s all about energy independence— that’s not going away.”

Unlike ethanol, biobutanolhas limited water absorptionand can be blended with gaso-line at conventional refineries,with biobutanol blends trans-ported via pipeline.

Because biobutanol exhibitslow vapor pressure (i.e., loweremissions), special gasolineblends would not be required inhigh-pollution markets.

Biobutanol’s energy contentis closer to gasoline’s, offeringgreater fuel efficiency than exist-ing ethanol blends, Magyar said.

And biobutanol can be pro-duced from corn, wheat, or sug-ar cane at existing ethanol plants.

Magyar suggests biobutanolcould help demolish the 10percent federal “blend wall”for ethanol in conventionalgasoline. The U.S. Environ-mental Protection Agency isconsidering whether toapprove “E15” blends; Magyarsaid biobutanol could beblended at 16 percent withoutaffecting refinery or automo-tive systems.

More than 1.3 million milesof biobutanol vehicle tests havebeen conducted with no report-ed performance problems.

A British biobutanol demon-stration plant should be runningin 2010, with the first commercialplant tentatively online by 2013.

DuPont and BP plan tolicense biobutanol productionto existing ethanol plants, andare working with global biofu-els producers, regulators, andvehicle manufacturers to speedbiobutanol acceptance. —Martin Ross

Logistics challenge to cob-based fuelMidwest biofuels producers face an interesting

dilemma: Corn residues offer a potentially lower-cost gateway to next-generation cellulosic ethanolproduction, but their removal for fuel productioncould compromise environmental goals.

DuPont is looking to take the problem literallyby the ear: As part of a joint venture with Dan-ish-based technology provider Danis-co/Genencorp, the company plans to launch a 25million-gallon-per-year Midwest corn cob-to-ethanol demonstration plant by 2012.

A second 15-million-gallon switchgrass-basedplant is slated for Tennessee by 2013.

DuPont Biofuels North American industrymanager Dennis Magyar argues “the science toconvert biomass to fuel is real,” and DuPontanticipates a potential 2-billion-gallon annual“cob-to-ethanol” market, “assuming biomasssupply chains become available.” Further growthwill depend on improvements in cob “collectioneconomics” and other plant costs, Magyar said.

Both DuPont/Danisco plants will feature on-site production of enzymes used to break cellu-lose down into fermentable sugars, and heexpects enzyme costs to drop perhaps 70 percentby the time the plants begin operation.

Further, ethanol processing yields are “exceed-ing our expectations”: While a ton of biomassgenerated an average 67 gallons of fuel a few

years ago, Magyar projects per-ton yields rising to90 gallons by 2012. That should reduce biomassethanol production costs from a current $2 pergallon to $1.50, he said.

A major challenge lies in plants obtaining a“reliable long-term supply of biomass at compet-itive and predictable prices.” Magyar acknowl-edged producers will require “a bankable andprofitable” sales contract.

“A key component in the supply chain that’snot been met yet is the actual competitive collec-tion, storage, harvest, and delivery to the plantgate of the cobs,” Magyar told FarmWeek.

“That needs to be done. We’ve teamed with IowaState University and other academia, and DuPont-Danisco Cellulosic Ethanol is currently working toresolve that in time for our first commercial plant.Collection and distribution of biomass at a competi-tive price is still a work in process.”

Talk of tapping corn stover for ethanol hasraised concerns about low-till/no-till practicesthat help preserve soils and sequester atmospher-ic carbon. Additional use of post-harvest residuesalong with cobs is possible “if science tells usthere’s a certain percentage that could (safely) bepulled from the ground,” Magyar said.

However, because of the density of cropresidues, he argued cobs are easier to collect. —Martin Ross

GROWMARK


Leveraging agronomic expertise within GROWMARK systemBY AMY BRADFORD

Scattered across a smatter-ing of states are 400 individu-als who advise farmers onseed, fertilizer, crop protectionand other agronomic practices.

These specialists are part ofthe legion of experts in theGROWMARK System whowork with farmers daily tohelp them reduce risks,increase profits, become morecompetitive, and make farmingeasier.

“Our responsibility is tomake sure the best agronomicrecommendations get put withthe seed a farmer uses,” saidRod Woefel, manager ofGROWMARK’s agronomymarketing and agronomic ser-vices. “Yet it’s only throughour relationship with local FSmember cooperatives andtheir crop specialists that ithappens.”

Woelfel noted the infra-structure at local FS membercooperatives: “They have theequipment, the service plans,and the ability to address thewhole-farm cropping chal-lenges growers have. Our job(at GROWMARK) is to makesure our training provides theskill sets, the tools, and thesoftware programs to do itbetter than others in the mar-ketplace,” he said.

GROWMARK is an indus-try leader in agronomic prac-tices and adopting new tech-nology. Woelfel said years agocrop specialists used sliderules to determine accuratefertilizer application for opti-mum yields. They graduatedto electronic calculators, small

computers, and hand-helds asnew technology was available.

GROW-MARK alsowas one of thefirst to useGeographicInformationSystems (GIS).“We took thelead in the Mid-west withregard to theutilization ofthese tools, andthe acres thatcame withthem,” he said.

Agronomic solutions initial-ly were offered through localFS member cooperatives inIllinois, Iowa, and Wisconsin.GROWMARK expanded intoOntario, Canada, in 1994. In2002, it moved into the EastCoast market with the acquisi-tion of Agway Agronomy andSeedway.

Jim Spradlin, vice presidentof agronomy, said the largerfootprint enables the coopera-tive to offer best-in-classexpertise in the areas of pro-

curement, marketing, andtechnical support while main-

taining efficien-cies.

“Our acqui-sition of Agwaytook us to thefarm gate onthe East Coast.Combined withour business inthe Midwest,not only havewe grown ourown business,we became abetter partner

for our member-owners andwith manufacturers of seed,

crop protection, and fertilizerproducts as a more significantforce in the marketplace.”

Woelfel acknowledged newtechnology and challenges willcome with further growth.

“If we have the approachthat we are going to help makethe best recommendationsusing the latest technologiesthat have real value and appli-cation with growers, and we

continue to train, prepare, andequip our people to work inthese environments and pro-vide access to the very bestsolutions, that’s our best posi-tion to have going forward,”he said.

Amy Bradford is GROW-MARK’s corporate communicationsmanager. Her e-mail address [email protected].

Third of a series

Jim Link, right, a crop specialist with Riverland FS Inc., Wataga, con-sults with farmer Mike DeSutter of Woodhull. (Photo courtesy ofGROWMARK)

Certified crop specialist programwas created by GROWMARK

In the 1980s, a challenge surfaced on how to assure farm-

ers they were dealing with individuals who were trained to help

make the best agronomic recommendations for their farming

operations.

In response, GROWMARK in 1986 created the certified

crop specialist (CCS) program. The first program of its kind in

the marketplace, the program requires crop specialists to

demonstrate the highest ability of diagnostic and agronomic

assessments.

In 1993, the American Society of Agronomy (ASA) imple-

mented a state and national program. Today, the ASA certified

crop adviser (CCA) program is one of the largest agricultural

certification programs in North America, with 13,000 CCAs in

the U.S. and Canada.

Attaining the CCA designation is a prerequisite for crop spe-

cialists who want to achieve their CCS recognition.

Under the GROWMARK/FS CCS program, specialists are

certified annually through a series of continuing education and

professional leadership programs. Of the 400 crop specialists

throughout the GROWMARK System, approximately 175 are

certified.

Rod Woelfel, GROWMARK’s manager of agronomy market-

ing and agronomic services, said some certified crop special-

ists were certified in 1986 and have recertified each subse-

quent year.

‘Our responsibility ist o m a k e s u r e t h ebest agronomic rec-ommendat ions getput with the seed afarmer uses.’

— Rod Woefelmanager of GROWMARK’s

agronomy marketing andagronomic services

RESEARCH



Agronomy researchers are applyingnew high-tech tools to help farmerscope with herbicide resistance in weedsand get the information to them muchfaster.

“It’s pretty exciting to be able to usethese modern, sophisticated tools inweed species,” said Patrick Tranel, Uni-versity of Illinois professor in molecu-lar weed science. Tranel will discussDNA sequencing of weeds Thursday,Aug. 13, during the U of I AgronomyDay.

Agronomy Day typically has beenon the third Thursday in August, butthis year it will be a week earlier at theCrop Sciences Research and EducationCenter (South Farms), south of themain Urbana-Champaign campus off

of St. Mary’s Road.The event was moved up so it

wouldn’t conflict with other ag eventsscheduled for later in the month.

U of I researchers are using molecu-lar information about weeds to help“develop a tool kit” for farmers, Tranelsaid.

“Now that we have DNA sequences,when we have (herbicide) resistance, wecan rapidly test for resistance (in weedpopulations),” Tranel explained.

For example, scientists have devel-oped a test to check weeds for resis-tance to PTO-inhibitor herbicides, suchas Flexstar and Cobra. “There is a lotmore resistance to PTO inhibitors outthere than we’re aware of,” Traneladded.

If a farmer encounters glyphosateresistance in a weedy soybean field, hemight turn to a PTO-inhibitor herbi-cide for control. “If that (PTOinhibitor) didn’t work, he might wonderwhy,” Tranel said.

Now, ag scientists can run a test onweeds to check for PTO resistance.

Farmers “are getting into more situa-tions where control is an issue,” hesaid.

Researchers also are working on aDNA test for glyphosate resistance inwaterhemp.

Agronomy Day will start at 7 a.m.with hour-long tours that will berepeated every half hour until aboutnoon. Four separate tours will beoffered.

Tour subjects will include researchfindings on soybean varieties that areresistant to soybean aphids, manage-ment of western corn rootworm, bio-mass energy crops, and aerial fungicideapplications.

In addition to field tours, a tent willhost displays from agricultural organi-zations, research projects, and agribusi-nesses.

During a noon program, ColleenCallahan, director of Illinois RuralDevelopment, will speak. She earned adegree in agricultural communicationsfrom the U of I.

Information about Agronomy Day is

available online at {http://agronomyday.cropsci.illinois.edu/} or by contact-ing Sharon Conatser at 217-333-4256 orby e -ma i l ing her a t scona t se@i l -linois.edu).

A week earlier this year

U of I Agronomy Day packed with research information

Agronomy Day bookletnow available online

A version of the booklet outliningresearch to be presented at the Uni-versity of Illinois Agronomy Day onAug. 13 is available online.

The booklet offers brief sum-maries of the research projects thatwill be discussed. It may be found at{www.aces.uiuc.edu/news/News_Photos/agronomyday/agronomyday.pdf}.Printed booklets will be distributedat the event.

More than 1,000 visitors attendthe annual event on the Crop Sci-ences Research and Education Cen-ter, commonly known as the SouthFarms, south of the main Urbanacampus.

FarmWeekNow.com

Additional details on the exhibits atthis year’s Agronomy Day are avail-able at FarmWeekNow.com.

Still time to apply for GRITsFarm Bureau members interested in Illinois agriculture policy

issues have until Aug. 14 to apply for the IllinoisFarm Bureau Grassroots Issue Teams (GRITs) pro-

gram.The GRITs program provides members

the opportunity to address emerging policyissues as well as identify new educational pro-

grams. The goal is to identify emerging policyissues and/or program opportunities to increasefarm income for members.

A new team, renewable resources andenergy, has been added this year. The other seven

teams are conservation and natural resources; crop productionand trade; equine; livestock and dairy; risk management and farmprograms; rural life; and special crops and labor.

GRITs teams meet twice a year. The first meeting is sched-uled for Dec. 18 in Bloomington with the second meeting sched-uled next March.

Interested Farm Bureau members should contact their countyFarm Bureau or visit the IFB website at {www.ilfb.org} to obtainan application.

GRITs members will be announced in October.

Clark’s rule of thumb is thata turbine should supply about60 percent of a farm’s electri-cal load. “You don’t want aturbine that is too big or toosmall,” he said.

Most farmers are accom-plished mechanics, but Clarkrecommended farmers buy amaintenance contract for anyon-farm turbine because tur-bines contain so much elec-tronics.

However, farmers could domonthly or quarterly inspec-tions of their turbines, headded.

Education about on-farmturbine use is needed, andClark said he has worked withUniversity of Illinois Exten-sion specialists to address thatneed.

Illinois isn’t alone in theneed for wind energy educa-tion; nationwide, research labsare scrambling to provideinformation. Clark has a staffof four to address many issues,including small wind-energyprojects.

“NREL (the NationalRenewable Energy Laboratory)has two people working insmall wind (research), andthat’s at the national level,”Clark noted.

The nation also needs safetyand performance standards forsmall wind-energy equipment,according to Clark.

Information about farmwind energy research is avail-able online at{www.cprl.ars.usda.gov}. —Kay Shipman

Illinois farmers could har-ness windenergy forelectricityneeds on theirown farms,according tothe director ofa USDA Agri-culturalResearch Ser-vice lab.

Nolan Clark, head of the

Conservation and ProductionResearch Laboratory in Bush-land, Texas, recently discussedon-farm use of wind-generat-ed power at a state wind powerconference in Bloomington.

Clark focused on a farmoperation using all of the pow-er generated by an on-farmturbine instead of selling pow-er wholesale on the grid.

The Texas agricultural engi-neer suggested Illinois farms

could use wind-generated elec-tricity to supplement any pur-chased power.

“Many (farmers) who usepropane now could convert(those operations) to electricityif they had cheap electricity,”Clark said.

He suggested wind-generat-ed power might be used forfeed milling and handling sys-tems on livestock farms andfor operating grain bin dryers.

Nolan Clark

Farmers may harness wind energy for on-farm power

The Illinois Department of Agriculture’s(IDOA) bureau of marketing and promotion isseeking grant proposals for nearly $435,000made available by USDA to promote thedomestic specialty-crop industry.

In addition to grants for advertising and pro-motion, IDOA also is seeking mini-grant pro-posals for streamlining product distribution andhandling. Advertising-related expenses for enti-ties such as farmers’ markets are eligible as longas program requirements are met.

Proposed projects should accomplish one ormore of the following:

• Increase nutrition knowledge and con-sumption of specialty crops;

• Ensure industry participation at meetingsof international standard-setting bodies inwhich the U.S. government participates;

• Improve efficiency and reduce costs of

distribution systems; • Help specialty-crop distribution chain enti-

ties develop good farming, handling, and manu-facturing practices;

• Invest in specialty-crop research, includingorganic research to focus on conservation andenvironmental outcomes;

• Enhance food safety;• Develop new and improved seed varieties

and specialty crops;• Improve pest and disease control; and • Augment sustainability. IDOA will accept grant applications until

Monday, 4 p.m. Aug. 3. Funding will be awardedearly next year.

Applications are available online at IDOA’swebsite {www.agr.state.il.us} or by contactingDelayne Reeves at 217-524-9129 or by [email protected].

Specialty-crop grants available through IDOA

A revised edition of the“Illinois Agronomy Hand-book” for research-based guid-ance on crop production isnow available. The handbookhas new information andguidelines as well as color pho-tos and illustrations.

Emerson Nafziger, Univer-sity of Illinois crop sciencesprofessor, said the handbook

contains a new chapter onnitrogen that completelyreplaces the corn-yield-basednitrogen (N) recommendationwith a system that generatesguideline N rates using recentdata and taking into accountchanges in N and corn prices.

The handbook will not beavailable free on the Internet,so some of the costs of pro-

ducing and printing the publi-cation can be recovered.

The handbook covers bestmanagement practices for Illi-nois conditions with informa-tion to increase yield and lowerproduction costs. To order acopy, call 800-345-6087 or visitthe Publication Plus website at{https://pubsplus.uiuc.edu/C1394.html}. The price is $35.

New U of I agronomy handbook available

IFB IN ACTION

FarmWeek Monday, July 27,

Contact your county Farm Bureau® for eligibility and contest information.

Entry Deadline August 4

IAA District Date Starting Time Location1 August 27 7:00 p.m. DeKalb County FB, Sycamore2 August 24 7:00 p.m. Stephenson County FB, Freeport3 August 19 7:00 p.m. Henry County FB, Cambridge4 August 24 4:30 p.m. Wise Guys Restaurant, Princeton5 August 6 6:30 p.m. Will County FB, Joliet6 August 24 7:00 p.m. Livingston County FB, Pontiac7 August 25 7:00 p.m. Tazewell County FB, Pekin8 August 12 6:30 p.m. Knox Agri-Center, Galesburg9 August 19 7:00 p.m. Adams County FB, Quincy10 August 11 7:00 p.m. Cass-Morgan FB, Jacksonville11 & 12 August 25 6:30 p.m. Champaign County FB, Champaign13 & 17 August 27 6:30 p.m. Edwards County FB, Albion14 August 10 6:30 p.m. Montgomery County FB, Hillsboro15 & 16 August 27 6:30 p.m. Madison County FB, Edwardsville18 August 20 6:30 p.m. Saline County FB, Harrisburg

(to Illinois Farm Bureau)

Show your art of discussion for hot agricultural topics - and compete for great prizes, including a chance to represent our state at the National Discussion Meet.

District & State Discussion Topics:How can agricultural producers reach out to the public to gain their support on important issues impacting agriculture?What can be done to encourage young people to get involved in the agricultural industry and remain there?

Additional State Topics:The U.S. has the safest food supply in the world. How do farmers continue to improve the public’s perception of their products?How can we continue to bridge the gap between farmers/ranchers and lawmakers in order to have an influence in the changing political environment?

State WinnerJune 1 - Aug. 1, 2010 (2 mo. use) or 100 hrs. use (whichever comes first) on an AGCO DT205B 4WD cab tractor, 205 PTO hp. Power Maxx CVT powershuttle transmission (additional terms apply) (courtesy of AGCO) $ 1,000 Cash (courtesy of IFB)Trip to 2010 AFBF® Annual Meeting, January 10-13, Seattle, WATrip to 2010 IFB® Young Leader Conference, February 5-7Trip to 2010 GROWMARK Annual Meeting

First Runner-Up$600 VISA Gift Card (courtesy of 1st Farm Credit Services & Farm Credit Services of Illinois)

Four State Finalists$ 200 Cash (courtesy of COUNTRY® Financial)1 yr. membership in Illinois Soybean Association

District WinnersCOUNTRY® prize$50 Fast Stop gift card for fuel or merchandise (courtesy of GROWMARK, Inc.)Trip to 2009 IAA Annual Meeting in Chicago with specific expenses to be paid

Come Stick Your Neck Out at Your County Farm Bureau

Young Leaders Discussion Meet.

MY013T9REVISED

Let’s talk turkey...tractors, cows, and corn!

LARGE GIFT

Country Financial CEO John Blackburn, left, presents a $100,000 contribution to Illinois Farm BureauPresident and IAA Foundation Chairman Philip Nelson to help support Illinois Agriculture in theClassroom. The donation is the largest single gift ever from a corporate entity. A significant portionof the donation will go toward helping fund county grants supporting ag literacy coordinatorsthroughout Illinois. (Photo by Al Hasty)

Discussion Meetdeadline Aug. 4

Young Leaders who want to compete in this year’s DiscussionMeet have until Aug. 4 to register with their local county FarmBureau.

The annual Discussion Meet is a competition in which18 to 35 year olds exchange facts and insights about a pre-determined topic.

A panel of judges scores the contestants on how well eachworks with other contestants and how well each expresses his orher views on the topic.

Winners advance from local competitions to the state eventheld in conjunction with the Illinois Farm Bureau annual meet-ing in December.

The winner of the state event then will compete at the nation-al contest held during the American Farm Bureau Federationannual meeting in January.

The winner of the national contest receives a new DodgeRam pickup.

More information about the Discussion Meet is available bywatching a video of last year’s contest online at {www.ilfb.org}.

PULLING FOR AG

Jessica Farthing of Tamaroa in Perry County was amongthe more than 300 trap and sporting clays shooters par-ticipating in the recent third annual Pull for Ag Educa-tion event at the World Shooting & Recreation Complexin Sparta. All funds raised at the event go to help Illi-nois Agriculture in the Classroom continue its mission topromote agriculture literacy. (Photo by Al Hasty)

DatebookJuly 29

Illinois Farm Bureau Commodities Conference,8:30 a.m., Crowne Plaza, Springfield.

July 30Illinois Agriculture in the Classroom golf outing,Wolf Creek Golf Club and Elks Country Club, Pon-tiac.University of Illinois Brownstown Agronomy Centerfield day, starts at 9 a.m., Brownstown.

Aug. 6University of Illinois Dixon Springs AgriculturalCenter field day, 8 a.m. to noon, Simpson.Illinois Conference on Agricultural Land Use and Plan-ning, 8:30 a.m., Oak Ridge Golf Course, LaSalle.Registration deadline July 30. Call 815-395-5710.

Aug. 13University of Illinois Agronomy Day, 7 a.m. to 2p.m., South Farm, Urbana.

Aug. 14-23Illinois State Fair, Springfield.

LIVESTOCK


Inventory declines; market may be poised to recoverBY DANIEL GRANTFarmWeek

The cattle market may bepoised in coming months tobounce back from summerlows as market-ready suppliesof animals could get tight.

USDA on Friday reportedthe inventory of cattle andcalves on feed for the slaughtermarket in the U.S. (9.8 millionhead as of July 1) was down 5percent compared to the sametime last year.

Meanwhile, placements infeedlots in June totaled just1.39 million head, 8 percentlower than a year ago.

“The number (of cattle) slat-ed to come out of feedlotscould get drastically tighter,”said Dale Durchholz, AgriVisormarket analyst. “It’s going tohave an impact (on the market).”

The smaller cattle inventoriesin the most recent report wereexpected, according to Durch-holz. But one number that caughtsome traders off guard was mar-

ketings, whichincreased 1 percentfrom a year ago. Thetrade reportedlyanticipated a reduc-tion in marketingsfrom last year.

“That impliesthe number of market-readycattle in feedlots should be rel-atively current,” Durchholzsaid.

Dressed weights in the mostrecent report also were higherthan last year (see graphic).Durchholz believes the heavierweights are a function of themild summer in the Midwest, arecent decline in corn prices

that reduced feed costs, and thefact that cattle prices earlierthis year were soft and feedlotmanagers, therefore, were notas willing to price their animals.

Cattle slaughter by this fallcould sink to as few as 580,000head per week compared to

640,000 head per week duringthe fall of 2008.

In fact, slaughter numbersin October, November,and/or December couldreach five-year lows, accord-

ing to the analyst.“Cattle prices could become

more attractive as we look tothe fall months,” Durchholzsaid. “I think we’re setting upthe cattle mar-ket, oncewe’re out ofthe dog daysof summer,to lift out ofthe lower$80s and startour march upward back to $90and maybe even the low $90s(per hundredweight).”

Beef supplies could get eventighter once the U.S. dairyindustry completes its dairycow buyout. Dairy cows thathave gone to slaughter inrecent months have kept thebeef cattle market under pres-sure, the analyst noted.

‘ C a t t l e p r i c e sc o u l d b e c o m emore at t ract iveas we look to thefall months.’

— Dale DurchholzAgriVisor

FarmWeekNow.com

Details of the USDA cattle in-ventory report are availableat FarmWeekNow.com.

Irrigation field dayscheduled Aug. 6

The first-ever irrigation field day for farmersand landowners in Southeastern Illinois andsouthwestern Indiana has been scheduled forThursday, Aug. 6, at 8:15 a.m. Central Time atthe JMR Farms on old Route U.S. 50 betweenLawrenceville and Vincennes, Ind.

The field day will provide an opportunity forboth landowners and producers to obtain themost current information about the assessmentof irrigation systems. Lyndon Kelley, Purdue’sExtension irrigation specialist, will be the fea-tured speaker. Topics to be covered include:

• Water application uniformity issues andassessments

• Trickle irrigation • Irrigation scheduling issues• Irrigation scheduling tools and techniques• Chemigation and fertigation — required

backflow prevention and safety equipmentFor additional information, contact the Knox

County, Ind., Soil and Water Conservation Districtat 812-882-8210, extension No. 3. Breakfast willbe provided. Reservations are due prior to Aug. 3.

Illinois forage expo offers demonstrations

The Illinois Forage Expo will be Friday from 9a.m. to 4 p.m. on the Meier Farms near Ridott inStephenson County. Meier Farms is a family dairyconfinement operation with 345 acres of alfalfa.

The expo will include field demonstrations offorage harvesting equipment and commercialdisplays of forage-related products and equip-ment. Educational sessions will cover the use ofautosteer in forage systems, economics of alfalfaproduction, managing risk with hay insurance,and nutrient management planning and the envi-ronmental quality incentives program (EQIP).

In addition, producers may participate in afree quality hay and haylage contest. Contestentries must be delivered to the site between 9and 10 a.m. Bales weighing more than 100pounds will need an official scale weigh ticket.

Lunch will be available at the site. Additionalinformation is available online at{web.extension.uiuc.edu/stephenson/index.html}.

The expo is sponsored by the Illinois Forageand Grassland Council, Blackhawk HillsResource Conservation and Development, andthe Illinois Environmental Protection Agency.

FROM THE COUNTIES


BUREAU — The Mem-ber Relations Task

Force and the Extension officewill sponsor three computerclasses from 3 to 5 p.m. Tues-days, Aug. 4, 11, and 18, at thePrinceton High School com-puter lab. Computer basics,Microsoft Excel, and introduc-tion to the Internet will becovered. Cost is $10 per class.Call the Farm Bureau office at815-875-6468 by Tuesday forreservations or more informa-tion.

• Farm Bureau, Henry, Mar-shall-Putnam, and Stark Coun-ty Farm Bureaus will sponsora local government conferenceat 9 a.m. Tuesday, Aug. 11, atthe Farm Bureau office,Princeton. Breakfast will beserved. Topics will includelocal road funding, rural devel-opment, and drainage law.Call the Farm Bureau office at815-875-6468 by Friday forreservations or more informa-tion.

CHAMPAIGN — FarmBureau will sponsor a

“Preparing for Tomorrow’sHarvest: AgriEnergy” seminarfrom 9 a.m. to 4 p.m. Tuesday,Aug. 11, at the Tony NoelAgricultural Center, ParklandCollege, Champaign. Speakerswill include former congress-man Tom Ewing; director ofthe Center for AdvancedBioenergy Research HansBlaschek; Vice President ofBiofuels for Monsanto Tech-nology Martha Schlicher; andIllinois state Director of RuralDevelopment Colleen Calla-han. Cost is $25, whichincludes lunch. Call the FarmBureau office at 217-352-5235or go online at{www.ccfarmbureau.com} forreservations or more informa-tion.

FULTON — The all-member pool party will

be at 6 p.m. Friday at the BigCreek Park, Canton. Call theFarm Bureau office for moreinformation.

JERSEY — The Market-ing Committee will spon-

sor a pork promotion from 4to 7 p.m. Tuesday, Aug. 4, atthe State Street Farmers’ Mar-ket. Jersey County FarmBureau members will receive50 cents off a pork chop orburger sandwich by showingtheir membership card.

KNOX — Doug Yoder,Illinois Farm Bureau

senior director of marketingand risk management, will bethe speaker at an average croprevenue election (ACRE)meeting at 9 a.m. Thursday,Aug. 6, at the Knox Agri Cen-ter. Call the Farm Bureauoffice at 342-2036 for reserva-tions or more information.

LAWRENCE — TheYoung Leaders will

sponsor a pedal tractor pull at5 p.m. Monday (today) at the

county fair. There will beprizes for the top three indi-viduals in each class.

• The Young Leaders willsponsor a family fun night at 7p.m. Tuesday at the fair.Games for all ages will be inthe grandstand.

LEE — Lee, Carroll, andWhiteside County Farm

Bureaus will sponsor a localgovernment conference at 1p.m. Thursday at Sauk ValleyCommunity College, Room2K2. The program will focuson local funding of ruralroads, rural development, andlocal government funding.Call the Farm Bureau office at815-857-3531 or [email protected] for reser-vations or more information.

• The Young Farmer Com-mittee is sponsoring a “Har-vest for All” food drive, whichwill continue through Aug. 8.Non-perishable food itemsmay be dropped off at theFarm Bureau office or theWoodhaven Association mainoffice. Call the Farm Bureauoffice at 815-857-3531 or e-mail [email protected] formore information.

• A policy developmentmeeting will be at 7:30 p.m.Tuesday, Aug. 4, at the FarmBureau office. Members maytake part in this grassrootsprocess to help shape FarmBureau policy. Call the FarmBureau office at 815-857-3531or e-mail [email protected] more information.

• Farm Bureau will sponsoris 15th annual Farm Visit Dayfrom 10 a.m. to 2 p.m. Satur-day, Aug. 8. Buses will leaveWoodhaven Association tovisit the host farm. Ticketsare available at Woodhaven’smain office and are required toboard the bus. Call Wood-haven’s office at 815-849-5200or the Farm Bureau office at815-857-3531 for more infor-mation.

MONTGOMERY —The Prime Timers

will sponsor a bus trip Tues-day, Aug. 4, to Fairmount ParkRace Track, Collinsville. Thebus will leave at the followingtimes and locations: 9:35 a.m.downtown park, Nokomis;10:05 a.m. Farm Bureau office;and 10:20 a.m. former Krogerparking lot, Litchfield.

• Kevin Rund, Illinois FarmBureau senior director of localgovernment, and Paul Hentze,Illinois State Police District18, will present an “On theRoad” seminar at 7 p.m.Wednesday, Aug. 5, at theM&M Service Co. fertilizerplant, Litchfield. Topics willinclude U.S. Department ofTransportation numbers, com-mercial driver’s license require-ments, and medical cards. Theprogram is sponsored byMacoupin and MontgomeryCounty Farm Bureaus and M

& M Service Co. Call theFarm Bureau office for moreinformation.

PEORIA — A renew-able energy breakfast

meeting will be at 7:30 a.m.Friday, Aug. 7, at the FarmBureau auditorium. BauerPower will give a presentationon solar, wind, and geothermalenergy. Call the Farm Bureauoffice at 309-686-7070 byMonday, Aug. 3, for reserva-tions or more information.

• Orders for Southern Illi-nois peaches are due by Friday,Aug. 7. Cost is $20 for a 25-pound box. Peaches may bepicked up at the Farm Bureauoffice Thursday, Aug. 13.

ROCK ISLAND — ARules of the Road sem-

inar will be at 7 p.m. Tuesday,Aug. 11, at the Farm Bureauoffice. Kevin Rund, IllinoisFarm Bureau senior directorof local government, and JoeyDelarosa, Illinois State Policecommercial vehicle officer,will be the speakers. Call theFarm Bureau office at 309-736-7432 for reservations ormore information.

• The Rock Island CountyFarm Bureau Foundation golfouting will be at 8 a.m. Friday,Aug. 14, at the HighlandSprings Golf Course, RockIsland. Cost is $60 or $290 fora foursome plus a hole spon-sorship. Call the Farm Bureauoffice for more information.

• The annual meeting willbegin with dinner at 5:30 p.m.Thursday, Sept. 3, at the MilanCommunity Center. A View-point meeting will be heldwith U.S. Rep. Phil Hare (D-Rock Island), Jim Bohnsack,county board chairman, andlocal Farm Bureau directorsattending.

SANGAMON — TheMarketing Committee

will sponsor a market educa-tion tour to Twin GrovesWind Farm in McLean Countyand a tour of Becks Hybridresearch facility near LeRoyTuesday, Aug. 11. The bus willleave the Farm Bureau officeat 8:15 a.m. and return byapproximately 5 p.m. Cost is$20 for members and $35 fornon-members. Call the FarmBureau office at 217-753-5200by Wednesday, Aug. 5, forreservations or more informa-tion.

STEPHENSON --Orders for Cresthaven

peaches from RendlemanOrchards are due Thursday,Aug. 6. Cost is $20 for a 25-pound box for members and$23 for non-members. Deliv-ery will be Monday, Aug. 10.Call the Farm Bureau office at815-232-3186 or at{www.stephensoncfb.org} foran order form.

• A “first on the scene”farm safety and rescue pro-gram will be from 10 a.m. to 3

p.m. at the Kevin Keltner farmnear Pearl City. Stateline FarmRescue will present the pro-gram highlighting farm haz-ards and safety procedures.Lunch will be served. Call theFarm Bureau office at 815-232-3186 for reservations ormore information.

• Farm Bureau has bus tripsplanned to the Illinois StateFair on Tuesday, Aug. 18; theJohn Deere Tractor andEngine Works, Waterloo, Iowa,on Wednesday, Aug. 19; and tothe Farm Progress Show onTuesday, Sept. 1. Completedetails can be found at{www.stephensoncfb.org}.Call the Farm Bureau office at815-232-3186 for reservations.

• A bus trip to the HalfCentury of Progress Show inRantoul will be Saturday, Aug.29. The bus will leave at 6:30a.m. from Forreston HighSchool. Contact EricKohlbauer at 816-362-2111for more information.

• Preview programs for theAugust 2010 trips with Tri-State Travel will be at 7:30p.m. Thursday, Aug. 20, forthe Nova Scotia trip and Tues-day, Sept. 22, for the Michigantrip. Details are available at{www.stephensoncfb.org} orcall the Farm Bureau office at815-232-3186.

VERMILION — KevinRund, Illinois Farm

Bureau senior director of localgovernment, will be the speak-er at a unified carrier registra-tion truck information meet-ing at 9 a.m. Friday at theFarm Bureau office. Call theFarm Bureau office for moreinformation.

WARREN-HEN-DERSON — A

Farm Safety Day planningmeeting will be at 10 a.m.Wednesday, Aug. 5, at theFarm Bureau office. Therewill be two safety days planned— one for fifth grade studentson Sept. 30 and one for sev-enth grade students on Oct. 1.Call the Farm Bureau office at309-734-9401 for more infor-mation.

• Farm Bureau will sponsoran average crop revenue elec-tion (ACRE) meeting at 1 p.m.Thursday, Aug. 6, at the FarmBureau office. Doug Yoder,Illinois Farm Bureau, will bethe speaker. Mark Phillipson,Warren County Farm ServiceAgency, and Cindy Bridgford,Henderson County Farm Ser-vice Agency, also will attend.Call the Farm Bureau office at309-734-9401 for more infor-mation.

• Farm Bureau and WyffelsHybrids will sponsor a market-ing and crop report breakfastmeeting at 7 a.m. Wednesday,Aug. 12, at the Farm Bureauoffice. Call the Farm Bureauoffice at 309-734-9401 for

reservations or more informa-tion.

• Farm Bureau and CountryFinancial will sponsor an edu-cational long-term care insur-ance seminar at 2:30 p.m.Thursday, Aug. 13, at the FarmBureau office. Call the FarmBureau office at 309-734-9403for reservations or more infor-mation.

• Farm Bureau will sponsora program at 6 p.m. Thursday,Aug. 13, on how to plan finan-cially for a family with specialneeds. Rick Morgan, an attor-ney, will discuss special needstrusts. Call the Farm Bureauoffice at 309-734-9403 byMonday, Aug. 10, for reserva-tions or more information.

WAYNE — Wayne andEdwards County

Farm Bureaus and the FarmService Agency will sponsoran average crop revenue elec-tion (ACRE) update meetingat 7 p.m. Monday, Aug. 3, atthe Community of ChristChurch, Fairfield. DougYoder, Illinois Farm Bureausenior director of marketingand risk management, will bethe speaker. Call the FarmBureau office at 842-3342 forreservations or more informa-tion.

• Farm Bureau will sponsorits annual appreciation dinnerfrom 5 to 7 p.m. Friday, Aug.7, at the Cumberland Presby-terian Church, Fairfield. Tick-ets are $2, but children 12 andunder may eat for free. Take-outs are available. A silentauction will benefit the WayneCounty Ag in the Classroomprogram. Tickets must bepurchased by Aug. 1.

• The first annual WayneCounty Antique Tractor Drivewill be on Labor Day, Sept. 7.The event will begin and endat Grainergy Farms, north ofGeff. Drivers may register bycalling the Farm Bureau officeor by stopping by the office.

WHITE — FarmBureau will sponsor

its annual appreciation lunchfrom 11 a.m. to 1 p.m.Wednesday, Aug. 12, at theFloral Hall, White CountyFairgrounds. Call the FarmBureau office at 618-382-8512by Wednesday, Aug. 5, forreservations or more informa-tion.

WHITESIDE —Farm Bureau will host

an antique tractor drive Mon-day, Aug. 17. The ride leavesthe county fairgrounds at 8a.m. and travels to Coleta andreturns through Morrison-Rockwood State Park. Regis-tration is $35 per tractor. Allproceeds will benefit the coun-ty’s Agriculture in the Class-room program. Deadline toregister is Friday, Aug. 7. Callthe Farm Bureau office at 815-772-2165 for a registrationform or more information.

PROFITABILITY


Feeder pig prices reported to USDA*

Weight Range Per Head Weighted Ave. Price10 lbs. $14.00-$37.63 $29.3540 lbs. $26.00-$30.00 $26.5950 lbs. n/a n/aReceipts This Week Last Week

20,779 15,896*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

Confirmed lamb and sheep salesThis week 775 Last week 886 Last year 787Wooled Slaughter Lambs: Choice and Prime 2-3: 90-110 lbs, $96--$100. Goodand Choice 1-2: 60-90 lbs., $105.Slaughter Ewes: Utility and Good 1-3: $25-$28.50. Cull and Utility 1-2: $25.

Lamb prices

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

This week Prev. week ChangeCarcass $57.01 $56.26 0.75Live $42.19 $41.63 0.56

Export inspections

(Million bushels)Week ending Soybeans Wheat Corn07-16-09 13.4 19.0 36.807-09-09 11.2 9.8 39.4Last year 7.4 30.4 31.2Season total 1172.0 94.7 1495.2Previous season total 1054.6 145.0 2099.0USDA projected total 1210 980 1700Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 83.04 83.86 -0.82Heifers 82.47 83.84 -1.37

USDA five-state area slaughter cattle price

Analyst: Crude oil prices may have peaked for 2009BY DANIEL GRANTFarmWeek

Crude oil prices for the sec-ond year in a row may havepeaked for the year in July,according to Phil Flynn, seniormarket analyst with PFGBest’sResearch and a contributor tothe Fox Business Network.

If oil prices have peaked, thisyear’s high would end up near$75 per barrel compared to oil’shistoric run last year thattopped out at $147 per barrel.

The oil market “just hit $74to $75. Now it’s trying to decidewhere to go next,” Flynn saidlast week during a mid-yearcommodities outlook telecon-ference hosted by Dow JonesIndexes. “It likely could test thehighs again, but I think we’re

“When oil prices reached$147, it was not about supplyand demand,” Flynn explained.“People had lost confidence in

the U.S. economy and the U.S.banking system so they wereusing it (the oil market) as ahedge against systemic risk.”

getting close (to a peak).”Flynn projected a “sell-off ” in

the crude oil market once pricesreach their peak. Prices in com-ing months, therefore, could testthe January low of about $35 perbarrel, according to the analyst.

That type of scenario wouldbe welcomed by consumers,including farmers, who wouldbenefit from lower prices foreverything from gasoline anddiesel fuel to heating oil.

In fact, Flynn believes a“price collapse” in the gasolinemarket is possible, due to whathe described as plenty of supplyand refining capacity.

Meanwhile, an eventual eco-nomic recovery likely will result inthe federal government raisinginterest rates, which will be “very

bullish for the dollar and keep a capon the price of oil,” Flynn said.

The analyst, however, is con-cerned about possible governmentintervention in the energy market.

“There seems to be a realmovement toward taking awayhedge exemptions and institut-ing position limits,” Flynn said.“I think that’s a real danger tothe energy market, and I’m con-cerned how that would affectthe economy.”

Flynn rejected the idea thatspeculators in the energy marketare to blame for last year’s his-toric run-up in prices.

“Liquidity always lowersvolatility,” he said.

So why have energy mar-kets been more volatile in2008 and 2009?

Finishing off the year: Fungicides needed?BY LANCE RUPPERT

As anencore to the2008 growingseason, Moth-er Naturebrought outher worst in2009 and gaveus an even

more challenging spring todeal with. Many said the springof 2009 was the wettest andlatest anyone can remember.

As farmers, we must playthe cards we’re dealt and dothe best with what we have.So how do I maximize what isin the field today through thisfall’s harvest?

In addition to moisture and

ter and longer than untreatedcorn.

This looks to be a repeat oflast year with late plantingsand a cooler-than-normalsummer forcing the crop toremain in the field well intothe fall. Standing corn makeseveryone’s life better andallows harvest to be more effi-cient and profitable. What val-ue you place on that addedbenefit should be consideredwhen making a decision.

Insect pressure can comequickly and negatively impactfinal yield. Many growers haveseen yield response to plannedapplications of insecticideswith fungicides. Again, a

sound economic analysisbased on ROI, will help youmake better decisions.

A final piece to the fungi-cide and insecticide puzzle isto use an adjuvant packagethat can help these productswork better, giving more valueto the investment.

Any decision on manage-ment practices requires goodinformation. Contact yourlocal FS crop specialist for themost current information andrecommendations.

Lance Ruppert is crop protectionmarketing manager for GROW-MARK. His e-mail address isl r upp e r t@gr owmark . c om .

heat units, what factors mayaffect my crops yield in thenext 60 days? The shortanswer: disease and insects.

In late-planting years, thereis the potential for greateryield reduction from diseaseand insects.

With the abundance ofmoisture, moderate tempera-tures, and reduced tillage, theprobability of leaf disease inboth corn and soybeans is rela-tively high.

As you recall, our situationlast year was very similar tothis year at this time. Growerswho used a fungicide applica-tion on their corn and soybeanacres reaped the rewards ofhigher yields than those who

didn’t treat their fields.As you mull over the pros

and cons of applying a fungi-cide, consider analyzing thesituation from a return oninvestment (ROI) viewpoint.

If the projected rev-enue/acre (bushels ofincreased yield x marketprice/bushels) is greater thanthe projected cost/acre (prod-uct and application costs), theapplication of a fungicideprobably makes sense.

When thinking about corn,please do not overlook theplant health benefits of somefungicides and the ability forthe plant to have a strongerstalk and stand in the field bet-

BY JEFF BUNTINGRecent below-average temperatures have led

to the question: “Is this good or bad?” Theamount of growing degree days (GDDs) isabout half where it should be.

If this period lasts awhile, it might not begood, but right now it’s not bad.

The process of photosynthesis involvesmany factors. Cooler temperatures reduce pho-tosynthesis, reducing dry matter accumulation,and water use rates.

The cool nights increase the retention of sug-ars produced during the day, which means moresugars are retained. It’s a balancing act right now.

Using the same calendar date, about half ofthe corn acres were silked in 2008 compared toonly a quarter of the crop in 2009 with the mostcritical time for yield determination approaching.

There are reports of corn diseases, with gray leafspot being the most common. Many questions needto be addressed before making the decision to applyfungicides, so give your FS crop specialist a call.

Corn color is good except for those areasthat had standing water. Overall weed controlappears to be pretty good. The soil-appliedherbicides did a good job and put less pressureon the post applications.

There have been a few issues in controlling

weeds such as waterhemp, giant ragweed, andlambsquarters, mainly related to the size of theweeds at the time of application or the rate thatwas used to control them.

If you suspect herbicide resistance on yourfarm, contact your local FS crop specialist todetermine if this is an issue.

Soybean growth across the state varies fromjust planted to almost setting pods. Photosyn-thesis in soybeans can be limited during the dayfollowing a cool night. Soybean color looksgood, meaning the root nodules are active.

A great amount of volunteer corn is presentthis year. University research has shown thatvolunteer corn in soybeans can cause significantyield loss, depending on the amount and howlong it competes with soybeans.

It has been a long, challenging year — one thatmany of us won’t forget. Plot tours will be takingplace soon. Planting intentions will be decidedand then nutrient applications will be made.

Next comes the decision for fall herbicide applica-tion to avoid delays in planting the 2010 crop or to geta handle on those pesky winter annual weeds.

Jef f Bunting is GROWMARK’s weed sciencetechnical manager. His e-mail address [email protected].

PROFITABILITY


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CASH STRATEGISTCorn Strategy

✓2008 crop: Corn priceshave fallen to levels that havelittle downside risk. We expecta better pricing opportunitybefore summer’s end to makeneeded old-crop sales. Tie upthe basis if you can. Plan tomake sales if Decemberfutures move back into the$3.50-$3.75 range. If storageis available, it may pay to carrysome inventory past harvest.

✓2009 crop: There are afew signs the minor trend isturning back up. Decemberfutures need to close above$3.50 to confirm it. Hold offnew-crop sales. We may rec-ommend only needed harvestsales on the rebound weexpect over the next fewweeks.

❖Fundamentals: USDAannounced it will resurveysome eastern Corn Belt statesfor acreage, hinting cornacreage could be reduced inthe August report. Last year,though, the plantings werereduced only about 400,000acres in the August report.Yield expectations remain highwith the relative stress-freeenvironment, but there’s anacknowledgement the marketmay need to build in some“frost risk” premium. Soybean Strategy

✓2008 crop: Soybeanprices may have put in their16- to 18-week cycle low. Ifyou can, tie up the basis onold-crop inventories againstNovember futures. Use a rallyon that contract to $9.75 tocomplete pricing.

✓2009 crop: The action onNovember futures continuesto imply downside risk is rela-tively small. Still, the extent ofthe decline has ruled out amove back near early summerhighs anytime soon. We pre-fer to carry unpriced inventoryinto post-harvest. We think itwill pay to store soybeansunless the cost is exceptionallyhigh. If you need to price soy-beans before harvest, wait tosee if November futures canmove back to $9.75 beforemaking sales.

❖Fundamentals: Chinafailed to attract any bids forthe soybeans it offered to the

market. Chinese crushers con-tinue to willingly buy U.S. soy-beans. India may not have asmuch meal to sell in the fall inAsia, either, potentially boost-ing our meal exports. Still, ourcrop has good productionpotential.Wheat Strategy

✓2009 crop: Prices againbroke an emerging short-termuptrend. However, it appearsthe $5.12 low may hold. Goingforward, prices need to closeabove the 20-day moving aver-age before higher prices mightbe more secure. Continue tohold off additional sales. We

anticipate better pricingopportunities in late sum-mer/early fall. But, if yoursales lag recommendations, userallies near $5.50 on ChicagoSeptember to get caught up.

❖Fundamentals: Funda-mentally, wheat has very littlethat would suggest much upsidemomentum. Demand has beenroutine at best, with weeklyexport sales continuing at anominal pace, 342,300 metrictons (12.5 million bushels) thispast week. Short-term stocksremain adequate with freshinventories that entered thepipelines from harvest.

Looking at these threegraphics, you get the sense thatthe corn has become cheap. Itmay not be extraordinarilycheap, other than relative to

Basis charts

gold, but it has become cheapnonetheless, especially com-pared to direct competitors suchas wheat and soybean meal.

The relationship betweencorn and gold may be an exag-geration of the extent corn hasbecome undervalued, but it stillillustrates values are in theprocess of being pulled to anextreme.

At some point, the relation-ship between the two will gothrough an adjustment process.Either corn prices will move up,gold prices will move down, or acombination of both will occur.Even though this means little tothe market next week, nextmonth, even the next two tothree months, it’s clear thereshould be an adjustment inthese relative values over thenext year or so. And with cornprices at the lower end of therelative price spectrum, itshould have the least downsiderisk and the most upside poten-tial.

Cents per bu.

Corn is relatively cheap

PERSPECTIVES


How do we breathe some life into the agriculture economy?About 75 percent of what we produce is sold domestically.The other 25 percent is exported. Maybe we can grow thedomestic market some, but the real opportunity can be foundbeyond our borders.

In fact, shortly after confirmation in aspeech to the U.S. Chamber of Commerce,our new U.S. trade ambassador, Ron Kirk,pointed out the Obama administration isworking to put its stamp on bilateral tradeagreements with Panama, Colombia, andSouth Korea that were negotiated by theBush administration.

“Our success in resolving outstandingissues will determine the pace at which wemove forward with our FTAs (free tradeagreements),” he said.

Well, the pace is discouragingly slow.Nothing is happening.

Recently, the South Korean president arrived in Washing-ton to meet with President Obama. As close allies, we arestanding shoulder to shoulder against the North Koreannuclear threat. It was a perfect time to show solidarity byagreeing to move ahead with the free trade agreement withSouth Korea. Just think of all the beef we could sell.

But no! Nothing was done.The same thing happened to the president of Colombia,

who visited a couple of weeks ago. President Obama sent himhome empty-handed. No deal!

Colombia is a friend of ours in opposition to Venezueladictator Hugo Chavez. The trade pact would end duties ontons of our farm products, expanding sales dramatically.

I thought the president was moving on the Panama deal,but now, apparently that sits in limbo.

I credit the president for his modest move to lift some ofthe financial obstacles in trade with Cuba, but even there wesimply need to do more — faster.

We are in a recession that is pushing unemployment up. Weneed jobs and economic activity. The most effective and easyway to improve the situation is to open the trade channels.

Our trade problems are not being addressed. Improperlynaming our new flu “swine flu” has hammered pork exports.The House spending bill has a provision that bars the importsof Chinese chicken. Now, they won’t buy our chicken.

There are market opportunities within our reach, and wearen’t doing anything.

John Block, former U.S. agriculture secretary from Gilson, is asenior policy adviser with the Washington, D.C., firm of Olsson,Frank, Weeda, and Terman, which specializes in ag issues. His e-mailaddress is [email protected].

JOHNBLOCK

Trade opportunitiescrucial to ag economy

Soy oil

to the

rescue!

One of the realities of life is that encounterswith insects of the biting kind always increaseduring the summer.

When an insect takes a bite out of a human,scientists say it is an example of an ecologicalrelationship called parasitism. Such a relation-ship means that one species will benefit and theother will not.

In the case of insects, biting us it is painfullyevident that we are not the species benefiting

from the encounter. So think-ing animals that we are, we dowhat we can to avoid becom-ing a two-legged meal for asix-legged insect.

Our efforts to avoid provid-ing food for an insect are gen-erally associated with one ofthree approaches. The first, atleast in modern times, is useof an insecticide to kill poten-tially offending insects. Someof these efforts use area-wideprograms involving govern-

ment, such as mosquito abatement districts.The second general approach is directed

toward keeping the insects out of our spaces.Such things and activities, including windowscreens, mosquito nets, light traps, ultrasonicdevices, and burning plant materials, are used.In spite of the claims touted through slick adsin the media, only the physical barriers -- thescreens and the nets -- and burning some plantmaterials actually work. Light traps and ultra-sonic devices when used alone are not effectivein reducing encounters of the close kind withbiting insects.

A third approach can best be described aspersonal protection that involves the use of aninsect repellent. The idea behind repellents isthat a person wears a chemical, which eithermasks an odor that attracts the insect in the firstplace or prevents an insect from landing.

Through the magic of modern chemistry, anumber of very effective insect repellents areavailable on the market. The first was DEET,developed in 1946 by the U.S. Department ofDefense.

Others include picaridin, IR3535, DEPA, andMGK 264. All of these products have abbrevia-tions because the official chemical names areimpossible to pronounce or remember unless

you happen to be a chemist.The first repellents, though, were natural

compounds that were no doubt discovered byaccident. Which brings us to the relationshipbetween humans and plants.

Plants are a great food item. Because plantshave been fed on by all kinds of creaturesover the ages, these green food items defendthemselves with chemical defenses. In otherwords, many plants are bad tasting or evenpoisonous when eaten.

And as you might suspect, many plantsproduce chemicals that insects avoid, andsome of these have become “natural repel-lents.” For instance, oil of citronella, a prod-uct made from a grass of Indian origin, firstsold as a repellent in 1882 as McKesson’s Oil.

As it turns out, many plant extracts that areused as spices and flavors in cooking havesome insect repellent activity. For instance,anise, basil, fennel, garlic, ginger, peppermint,spearmint, black pepper, rosemary, sassafras,sesame, bayberry, and turmeric will all pro-vide short-duration relief from biting insects.

Plant extracts that have a longer protectiveaction include soybean oil, celery, clove,coconut oil, garlic, lime, palm oil, and thyme.In general, these natural products are highlyvolatile and evaporate from the skin ratherquickly. That means that the products willhave to be reapplied often to be effective.

The general perception that natural prod-ucts will be safe to eat or rub on our skin isnot always true. We need to remember thatnicotine, cocaine, and strychnine are naturalplant products, as is urushiol, the problemchemical in poison ivy. And the widely usedcitronella, for instance, can cause irritation insome people when applied on the skin.

So when mosquitoes begin to bite as youwork in the garden, don’t reach for the repellentspray can. Just head to the pantry and grab a lit-tle soybean oil and add a dash of rosemary andthyme and a pinch of black pepper.

If the homemade mixture prevents bites, youwon’t be sure if the mosquitoes were repelledor if they just mistook you for a garden plant.

Tom Turpin is an entomology professor at PurdueUniversity, West Lafayette, Ind. His e-mail address [email protected].

TOMTURPIN

Can pantry products help you avoid insect bites?

Recent weather doesn’t seem very much like global warmingEditor:

We are having “global warming” here this year. It is mid-Julyand this is the coldest week of the coldest summer I can remem-ber in my 58 years. It must be global warming, because that is allthat is acceptable as an explanation.

And, of course, man has to have caused any observable cli-mate change. I mean what else under the sun could have?

Have you heard how is the weather is in Washington, D.C.?Are our rulers still following Al Gore over the cap and trade cliffinto the sea? Will China and India cap their economies and tradeaway their countries?

I’ve read that the Red Planet has warmed and cooled in thesame cycle as Earth. I wonder what legislation the Martians havepassed.DANIEL HARMS,Bone Gap

Letter to the editor

farmweek july 27, 2009

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