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Monday, July 4, 2011 Two sections Volume 39, No. 27

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

Rain sloWed WheaThar vest at many locations lastweek, but farmers as the weekbegan were around half done withthe crop statewide. .........................7

The neW e15 (15 percentethanol) pump label represents arelatively balanced compromise thatwill allow the market to determinedemand for new blends. ..................3

The FedeRal MoToRCarrier Safety Administration willnow accept comments on interpre-tations of farm trucking rules untilAug. 1. ..............................................2

Quinn trims state budget for new fiscal year BY KAY SHIPMANFarmWeek

Gov. Pat Quinn ushered inthe state’s new fiscal year byfirst cutting and then signing anew $32.9-billion state budget.That amount is nearly $2 bil-lion below what the governorproposed when the budget-writing process started.

Quinn said he “carefullyexamined the budget ... andidentified areas for improve-ment and reduction.” He used

school districts’ transportationfunds by $89 million. He statedthat would bring the fundinglevel back to fiscal year 2011levels of $205.8 million.

“The budget is now in place.A large portion of the smalleramounts cut from the budgetwere included twice in appro-priations,” Semlow said.

The governor noted he haddiscovered and eliminated dou-ble appropriations during hisassessment of each line item inthe budget. Quinn also cut $276million in Medicaid funding.

“Implementing a budget isnot a one-day event but rather ayear-round process filled withrobust debate and difficult deci-

sions,” Quinn said.Quinn is unable to make a

decision on the GeneralAssembly’s expansion of thestate’s gaming system becausethat legislation is being held inthe Senate via a procedural rule.

The action of the Senatefreezes deadlines of having thelegislature forward the bill tothe governor and, therefore,blocks the governor from act-ing on the bill. It also puts onhold the creation of expandedgaming facilities.

The General Assembly willbe able to address the gover-nor’s budget veto when law-makers return in October forthe veto session.

his line-item veto to make $376million in cuts.

Those areas included elimi-nating of $11.3 million in gen-eral revenue funds, for regionalsuperintendent of educationsalaries as he had proposed ear-lier. Quinn stated the regionalsuperintendents may be fundedwith other state funds.

“To fund the regional super-intendents from other sourceswould most likely take separatelegislative action,” said Kevin

Semlow, Illinois Farm Bureaudirector of state legislation.

“In March, the governorincluded in his proposed budg-et eliminating the regionalsuperintendents, but the Gener-al Assembly did not supportthat recommendation,” Semlowcontinued. “The ball is now inthe General Assembly’s courtto accept the funding change orrestore the funding by overrid-ing the governor’s veto.”

The governor also reduced

destined to become ethanol

Paul Jeschke, left, and his wife, Donna (atop truck), of rural Mazonin Grundy County load corn destined for an ethanol plant in Indi-ana. The Jeschkes are in the process of cleaning out corn from lastyear’s harvest. They farm with Mrs. Jeschke’s brother, JohnDollinger, and his wife, Noreen. Mrs. Jeschke said the condition oftheir corn and soybeans this year ranges from good to fair. Thefamily had to replant 90 acres of soybeans and 60 acres of corndue to heavy rains. (Photo by Ken Kashian)

Roberts: Let ag committeeswrite the next farm bill BY MARTIN ROSSFarmWeek

Senate Ag Committee rank-ing Republican Pat Roberts (R-Kan.) can’t predict when hiscommittee may begin drafting anew farm bill, though “we’re try-ing hard to figure that out.”

But Roberts asks congres-sional appropriators to allowHouse and Senate ag commit-tees to “set the policies that leadto responsible spending reduc-tions and strike a balancebetween the needs of our pro-ducers and our taxpayers.”

The broaderbudget debate“will havemore impacton the struc-ture of thenext farm billthan it has onany other (ag)policy proposalin my memo-

ry,” he warned at a Washingtonbiotech industry conference lastweek.

The House recently defeatedan Appropriations Committeemove to set a new $250,000annual adjusted gross incomelimit for farm program eligibility,though direct farm paymentsremain a key target.

Roberts sees “a big bull’s-eyeon our back,” given high com-modity prices and mountingdeficit reduction pressures. Heargued high prices don’t last for-ever and stressed ag policy iswritten for five years to ensure afarm safety net “in the goodtimes and the bad.”

High prices “don’t meanmuch if we don’t have a crop tosell,” he said, citing drought con-ditions in western Kansas, Okla-homa, and Texas and a wetspring that’s prevented manyMidwest growers from plantinga crop. Crop insurance anddirect payments (“Yes, directpayments”) will help “devastat-

ed” farmers survive 2011 losses,he said.

Roberts is wary of programdirection being set by appropria-tions committees, insisting “it’swhat you’re cutting that’s dra-matically important, and howthat policy affects the farmerand, eventually, the consumer.”

“We just went through(House) ag appropriations, andyou saw what happened there,with some amendments that Ithought were terribly counter-productive and not well-thought-out,” Roberts toldFarmWeek. “That’s alwayswhat’s happened with appropria-tors who think they’d like towrite a farm bill, as opposed tothe (farm bill) authorizers.

“We think we have theexpertise to do it better, or atleast safer. We just don’t knowuntil we get (an ag budget)number, and we’ll quarrelabout the number, obviously,like everybody else.

“Farmers and ranchers tellme they’ll certainly contributeto deficit reduction. It’s justthat we’d like to have every-thing on the table, and I meaneverything within the ag budg-et. And we’d not like to be sin-gled out for something that’svery disproportionate withregards to the entire budget.”

See Roberts, page 3

Sen. Pat Roberts

DIRECT PAYMENTS/DIRECT IMPACTS— Cutting farm direct payments would haveimportant effects on federal budgets, farm income,and farmland values, while impacts on crop pro-duction and prices likely would be small, accordingto a new study from the University of MissouriFood and Agricultural Policy Research Institute(FAPRI). Much of the budget savings from cut-ting direct payments could be offset by sharpincreases in Average Crop Revenue Election pro-gram expenditures, FAPRI analysis concludes.FarmWeek will delve further into the study — aswell as conclusions by other economists — in afuture issue.

DISASTER HELP COMES TO WABASHCOUNTY — Wabash County last week joined theSouthern Illinois counties previously approved forfederal disaster assistance because of damagecaused by recent floods and storms.

The disaster declaration will allow people andbusinesses in the county to apply for federal disas-ter assistance, including grants and low-interestloans.

Earlier, 14 Southern Illinois counties had beenapproved for federal disaster help.

Tornadoes hit Wabash County in mid-April andstorms and flooding caused damage in late Apriland early May.

The Federal Emergency Management Agency(FEMA) operates a toll-free number 800-621-3362for storm victims. State information is available at{www.Ready.Illinois.gov.}

SOY HONOR — Sherwin-Williams Co. haswon a Presidential Green Chemistry ChallengeAward for an innovative new paint formulationusing soybean oil and recycled plastic bottles. Thetechnology is credited with reducing volatile organ-ic compounds (VOC) in environments where thepaint is used.

Oil-based “alkyd” paints have high levels ofVOCs that can become pollutants as the paintdries. Sherwin-Williams’ new paint cuts VOC con-tent by 60 percent, and it reportedly eliminated800,000 pounds of airborne VOCs in 2010. Inmanufacturing the new paint formula, Sherwin-Williams used 320,000 pounds of soybean oil andreplaced 1,000 barrels of petroleum-based oil.

FarmWeek Page 2 Monday, July 4, 2011

(ISSN0197-6680)

Vol. 39 No. 27 July 4, 2011

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 individ-ual 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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© 2011 Illinois Agricultural Association

STAFFEditorDave McClelland (dmcclelland@ilfb.org)Legislative Affairs EditorKay Shipman (kayship@ilfb.org)Agricultural Affairs EditorMartin Ross (mross@ilfb.org)Senior Commodities EditorDaniel Grant (dgrant@ilfb.org)Editorial AssistantLinda Goltz (Lgoltz@ilfb.org)Business Production ManagerBob Standard (bstandard@ilfb.org)

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Classified sales coordinatorNan Fannin (nfannin@ilfb.org)

Director 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)

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Quick TakesGOVERNMENT

BY KAY SHIPMANFarmWeek

The Federal Motor Carrier SafetyAdministration (FMCSA) will accept com-ments on interpretationsof farm trucking rulesuntil Aug. 1, after theagency granted a 30-dayextension.

Illinois Farm Bureaudid not oppose theextension as long as theFMCSA remained com-mitted, and it did, toreaching a solution byfall, said Adam Nielsen,IFB director of nationallegislation and policydevelopment.

Recently, three inter-pretations that impactfarm trucking were chal-lenged by IFB.

That prompted the FMCSA’s review. Those interpretations are: interstate vs.

intrastate definitions that apply to haulingof farm products within a state’s bound-aries, a for-hire designation for farmerswith crop-share leases, and applying truck-ing regulations to implements of hus-bandry.

Nielsen complimented Farm Bureau

members who have submitted comments toFMCSA and encouraged others to do like-wise. He learned hundreds of comments,many from Illinois, have been submitted.

Recently Anne Ferro,FMCSA administrator,addressed the state FarmBureaus’ national legislativedirectors when they met inWashington, D.C.

The agency is seekingdetails about farmers’ useof crop-share arrange-ments and farm equipmentso they can fine tune theirinterpretations, Nielsensaid.

“The administrator alsoemphasized that the com-ment period represents an‘honest effort to understandthe impact of regulations’

on farmers,” Nielsen said.Comments submitted must be identified as

pertaining to Federal Docket ManagementSystem Number FMCSA-2011-0146.

Comments may be sent online to {www.regu-lations.gov} (follow the instructions on the web-site); sent by fax to 1-202-493-2251; or mailed to:Docket Management Facility, U.S. Department ofTransportation, Room W-12-140, 1200 New Jer-sey Ave., SE, Washington, D.C., 20590-0001.

New Aug. 1 deadline

FMCSA extends comment period on trucking rules

Gov. Pat Quinn last weeksigned legislation requiringbackseat passengers to wearseat belts. The law takeseffect Jan. 1, 2012.

Under the new law, allvehicle passengers —regardless of age — mustwear a seatbelt. Currently,people in the front seat mustuse seat belts, but the lawdoesn’t extend to backseat

passengers who are 18 orolder. Emergency vehicles,buses, and taxicabs areexempt from the new law.

Quinn also signed a lawthat prohibits passengersfrom riding in trailers, semi-trailers, farm wagons, andother vehicles that are beingtowed on a public highway.Farm-related activities andparades are exempt. That law

also will take effect Jan. 1.The governor and legisla-

tors noted Illinois experi-enced one of its best yearsfor traffic safety in 2010.

For the first time since1921, Illinois had two con-secutive years with fewerthan 1,000 traffic fatalities.Increased use of seat beltswas credited with helping toreduce traffic fatalities.

Quinn OKs new seat belt, rider restrictions

Rural Development awards economic development grant to Illinois group

The Illinois Coalition forCommunity Services hasbeen selected to receive$175,105 over the nextthree years to promote eco-nomic and communitydevelopment in 13 Illinoiscommunities, Colleen Calla-han, Rural Developmentstate director, announcedlast week.

The Illinois recipient wasone of 43 selected nation-wide for $9.5 million inloans and grants.

The funding is providedthrough the Rural Commu-nity Development InitiativeProgram.

The Illinois Coalitionwill work with the towns of

Coffeen, Herrick, JohnstonCity, Roodhouse, Rosiclare,Rushville, Shawneetown,Vienna, and Palmyra.

It also will work withFood Works in Carbondale,Hamilton County EconomicDevelopment, PulaskiCounty Project Hope, andThe Happy Helpers Pantry,Tamms.

The Illinois Coalition,the state’s largest communi-ty service provider, hasoffered services to ruraland economically chal-lenged communities since1985.

It plans to train represen-tatives of the 13 towns andorganizations how to

research g rants and otherfunding sources, developstrategic plans, recruitand manage volunteers,write g rants, and developbudgets.

It plans to match theRural Development g rantwith state funds.

“Our goal is to help theleaders in these communi-ties design and implementtheir solutions that willultimately promote eco-nomic growth,” Callahansaid.

Information about RuralDevelopment programs andIllinois offices is availableonline at {www.rurdev.usda.gov/ILHome.html}.

government

Page 3 Monday, July 4, 2011 FarmWeek

Continued from page 1Roberts noted commodity programs constitute only about 4 per-

cent of the ag budget and less than 0.25 of a percent of the entirefederal budget. He reported ongoing discussions with colleagues toarrive at “a fair number” for producers.

In terms of the larger budget, he sees a Democrat push for signifi-cant defense cuts, new “revenue enhancements” (“we call those taxesin Kansas”), and a possible new economic stimulus package. “Thatcombination,” on top of deficit reduction proposals, likely would resultin a sharp and prolonged partisan divide in the Senate, Roberts said.

Roberts

E15 pump label standards seen as adequate compromiseBY MARTIN ROSSFarmWeek

It may not be perfect froma grower or biofuels industryviewpoint, but the new E15(15 percent ethanol) pumplabel represents a relatively bal-anced compromise that willallow the market to determinedemand for new blends.

So said Illinois Corn Grow-ers Association (ICGA) tech-nology and business develop-ment director Dave Loos fol-

appeared too cautionary.“If cost savings from E15

can be passed to the consumer,I think we’ll see early adoption.Right now, at a minimum,ethanol is 20-25 cents cheaper

than gasoline at the (wholesaleblending) rack.

“Three or four weeks ago, itwas 80-90 cents cheaper. Con-sumers would have a chance torealize savings from petroleummarketers who are early adopters.”

Industry representativeslast week suggested the firstE15 blends could hit the mar-ket this fall. Illinois is “proba-bly positioned” for early E15entry, Loos said, though someremaining federal and statehurdles must be cleared.

EPA is expected by Augustor September to register the fuelfor consumer use, pendingresults of health impact studies.States must sign off on specifi-cations, and while fuel equip-

ment standards appear in linewith state fire marshal guidelinesfor safe retail E15 sales, Loossaid some questions may remainregarding existing pump piping.

Newer pumps are particu-

larly well-suited for E15 use,he said. Loos suggested anindustry/policy push forinstallation of new multi-blend “blender pumps” wouldenable retailers now servingflex-fuel motorists to “getahead of the market.”

EPA’s E15 rule also includesa requirement to track E15through the fuel supply chainand directs a quarterly surveyto ensure pumps dispensingE15 are properly labeled.

EPA is issuing guidance oncompatibility of undergroundstorage tanks with gas con-taining greater than 10 percentethanol or diesel with morethan 20 percent biodiesel con-tent.

lowing culmination of a morethan six-month federal processof fine-tuning labels that willalert motorists nationwide tonew allowable gasoline stan-dard blends (see accompanyinglabel).

Currently, Illinois annuallyproduces roughly 1.6 billiongallons of ethanol per year.E15 has become a major rally-ing point for an industry rapid-ly approaching the “blendwall,” where ethanol supplies

would exceed market demand.The E15 label, a modified

version of a design submittedlast fall by the U.S. Environmen-tal Protection Agency (EPA) andthe Federal Trade Commission,alerts consumers thatthey are receivingblends of up to 15percent ethanol.

It notes E15 isapproved for useonly in 2001 andnewer passengervehicles or E85-capable “flex-fuel”vehicles and prohib-ited from use in“other vehicles,boats, or gasoline-powered equip-ment.” The labelingscheme is “betterthan what EPA orig-inally proposed and especiallybetter than what opponents toE15 were proposing,” Loostold FarmWeek.

While ICGA challengesclaims by small engine manu-facturers that higher-levelblends could harm mowers,boats, or other machinery,Loos acknowledged their con-cerns about addressing poten-tial warranty/liability issues.

“I think EPA did a nice jobof balancing things,” Loossaid. “The label doesn’t have a‘Warning’ or ‘Danger’ notice— it’s more an informationallabel than an alarmist label. Itdoesn’t hurt the image ofethanol as we were fearing itmight end up doing if it had

Senator-turned-governor: Don’t ‘kill’ biofuels revenues

While he no longer toils in Senate halls,Kansas Gov. Sam Brownback fully grasps oneof Capitol Hill’s most compelling and con-tentious buzzwords: revenue generation.Brownback’s not so sure some of his former

colleagues share that understanding when itcomes to the impact of ethanol on national,state, and individual revenues. The former Republican senator, who now

chairs the multi-state Governors’ Biofuels Coali-tion, is concerned by the recent Senate votesupporting immediate elimination of the 45-cent-per-gallon volumetric ethanol excise tax

credit (VEETC) and an accompanying 54-cent-per-gallon ethanolimport tariff that offsets tax credits for foreign biofuels.Renewable Fuels Association spokesman Matt Hartwig last

week deemed the measure “little more than theater.” But whileHouse action is required for VEETC elimination prior to its sched-uled Dec. 31 expiration, the debate has expedited talk of transi-tioning to a lower and/or “variable rate” credit. Brownback recognizes “we’ve got to get our deficit under con-

trol,” but is adamant about the need for continued ethanol sup-port in some form to foster cellulosic ethanol development andsustain economic momentum across the Midwest. Without tax credits for fuel blenders, “ethanol wouldn’t be any-

where near where it is today in providing 10 percent of the fuelneeds of America,” he told FarmWeek at a Washington conference.“Now, you have an industry that is up, is growing, is dynamic,

is creating jobs across the United States, is consuming U.S.products, is selling a product to America that is from Americainstead of from overseas,” Brownback said.“Lawmakers must be careful, because we don’t want to kill

that. (Biofuels) could get to be a third of our fuel needs. If we getto (15 percent ethanol blends), that will help. “If we expand cellulosic ethanol, that will help substantially,

because now you have new feedstocks coming in that can makea lot of ethanol.”Spanish-based Abengoa’s Hugoton, Kan., operation will blend

existing corn-based production with biomass conversion. WithAbengoa close to its goal of securing an annual 315,000 tons ofcrop residues and energy crops, Brownback is “very optimistic”about project prospects and revenue potential.Further, he believes the “biorefinery” concept evolving with

biofuels production could prove a launching pad for future “highvalue,” plant-based pharmaceutical products.Cellulosic ethanol enjoys a tax “carve-out” separate from the

corn ethanol credit, but Brownback fears VEETC elimination wouldmake extending the cellulosic credit “pretty tough.” However, healso notes the benefits of corn ethanol-based distiller’s driedgrains, rejecting “food-vs.-fuel” concerns about grain energy use.“We feed the grain we don’t consume for ethanol — we feed

the protein from it,” Brownback stressed. “(Biofuels) give us localmarkets: Instead of exporting the grain overseas — which we stilldo a great deal of — we can make the grain into ethanol, sell thatin a U.S. marketplace.” — Martin Ross

At left is the original E15 pump label designed last year by the Federal TradeCommission for the U.S. Environmental Protection Agency (EPA). At right is thenew label approved by EPA for nationwide use. The new label tones down earlycautionary language and emphasizes allowable E15 uses over prohibited uses.

Anticipated action on U.S.free trade agreements (FTAs)collapsed last week as Republi-cans boycotted a planned Sen-ate Finance Committee “mock(FTA) markup” over plans totie controversial “trade adjust-ment assistance” (TAA) toFTA legislation.

Producers were disappointedby cancellation of Thursday’strial vote on tariff reductionagreements with South Korea,Colombia, and Panama. ButAmerican Farm Bureau Federa-tion analyst Chris Garza Fridaycalled the standoff merely “asmall hurdle” toward eventuallyratifying the three accords.

“There still seems to be a verystrong commitment by the admin-istration and Congress to try toget these FTAs done by Augustrecess,” he told FarmWeek.

National Pork ProducersCouncil President Doug Wolfdeemed an FTA vote impera-tive “before Congress takes itsmonth-long break.”

Statements by Senate Fi-nance Chairman Max Baucus(D-Mont.) and ranking Repub-lican Orrin Hatch (R-Utah),following Senate plans to returnto Capitol Hill Tuesday, raisedhopes for FTA progress bymid-July, Garza said.

The White House and Bau-cus insist on renewing expiredTAA benefits for U.S. workersdisplaced by offshore job move-ment as part of FTA approval.That’s despite bipartisan con-sensus that FTAs would gener-ate major U.S. export gains anda senior administration official’srecognition that Americansoverall could “reap the econom-ic benefits” of the agreements.

In a White House teleconfer-ence last Tuesday, officials tout-ed an agreement with Baucusand House Ways and MeansChairman Dave Camp (R-Mich.)to attach TAA approval to FTAapproval. But many SenateRepublicans remain opposed tothe pair-up as a “procedural”

issue, Garza related.Hatch argued “the president

knows TAA can’t stand alone.”While AFBF and many bipartisanlawmakers supports TAA in prin-ciple, Senate Republicans favor “astraight up-or-down, separatevote” on TAA, Garza said.

FTA approval faces addedchallenges: House Ways andMeans Committee rankingDemocrat Sander Levin (D-Mich.) has stated he wouldoppose the Colombia FTAwithout further provisions toprotect Colombia worker rights.

The U.S. and Colombiarecently agreed to “enhance-ments” aimed at reducing labor-related violence, and administra-tion officials stressed Colom-bian officials already have takena number of new steps.

“What’s clear is that TAAwill have to be a part of theFTAs,” Garza nonetheless said.“How that gets worked out, I’mnot really sure at this point.” —Martin Ross

‘Trade adjustment’ controversy scuttles Senate FTA action

Gov. SamBrownback

government

FarmWeek Page 4 Monday, July 4, 2011

Senate ag leader sees support for regulatory reforms BY MARTIN ROSSFarmWeek

Senate Ag Committee ranking RepublicanPat Roberts (R-Kan.) is hopeful the Senate soonwill act to rein in “regulatory overkill” in keep-ing with recent House action and, by implica-tion, White House orders.

Roberts is spearheading Senate approval of ameasure thatamong otherthings wouldblock fall U.S.EnvironmentalProtectionAgency (EPA)implementationof new U.S.Clean WaterAct NationalPollutant Discharge Elimination System(NPDES) pesticide application permits.

While NPDES permits initially would applyto aquatic pesticides, ag groups fear EPA even-tually could require permits for crop applica-tions already regulated under the FederalInsecticide, Fungicide, and Rodenticide Act.Roberts argues legislation approved by hiscommittee earlier this month would head off“a double layer of red tape that ultimatelycosts producers and consumers.”

The House already has approved the meas-ure, but Senate Environment CommitteeChairman Barbara Boxer (D-Calif.) hasopposed it.

“I think we have an understanding with Sen-ator Boxer — I hope we do — that we will con-sider it,” Roberts told FarmWeek last weekduring an international biotechnology confer-ence in Washington. “If that can take place and

we don’t get any shenanigans holding up thebill, I think we’ll receive the same kind of bipar-tisan support that was evident in the House.”

The measure directs federal agencies toreview the justification for all existing and pro-posed regulations. Roberts argued it essentially“codifies” President Obama’s January executiveorder targeting duplicative and “counterproduc-

tive” Cabinet-level regulationswhile expandingthe directive toindependentagencies such asEPA andremoving whathe termed“loopholes” inthe executive

order.Regulatory overreach is “the No. 1 issue”

raised by his home district constituents, Robertssaid. Farmers in particular are “suffocatingunder a mountain of regulations coming out ofWashington,” he added.

He noted Federal Register publication ofproposed and final rules has reached “an all-time high,” posting 3,573 final and 2,439 pro-posed rules in 2010. The latter represents a 20percent increase over 2009, and Roberts proj-ects 224 of those regulatory proposals wouldcarry $100 million in economic impact.

The current NPDES permit plan could havea serious public health impact on communitiesbattling potentially disease-carrying mosquitoesfollowing heavy spring rains, Roberts added.

“The regulatory cost is just hammering atrural America and almost everything we do inthis country,” he advised.

‘The regulatory cost is just hammeringat rural America and almost everythingwe do in this country.’

— U.S. Sen. Pat RobertsRanking Republican, Senate Agriculture Committee

Pesticide labeling planincreases producer risk

Farm Bureau argues a proposed change in the way federalpesticide guidelines are communicated ignores rural technicalchallenges and poses producer privacy and liability concerns.

The American Farm Bureau Federation (AFBF) addressedconcerns about proposed “web-distributed” pesticide labeling inrecent comments to the U.S. Environmental Protection Agency(EPA). Removing detailed instructions and requirements fromchemical labels for exclusively online publication is a “hugeissue,” warns AFBF regulatory specialist Tyler Wegmeyer.

Wegmeyer reported the agency may issue a final plan sometime later this year. EPA is “clearly gung ho” about the plan,arguing it would improve individual compliance with oftenlengthy, finely printed labels, he told FarmWeek.

Under the proposal, producers could search online “labels”for information specifically relevant to their needs, EPA main-tains. But Wegmeyer notes many rural areas still lack or havelimited high-speed Internet access — “Maybe in 20 years, thiswould be OK, but not now.”

Even for those with broadband access, printing instructions— and reprinting them if additional information is needed —would be a “cumbersome” process, he said.

“You’d put in your information as Joe Farmer — you’regoing to apply X pesticide on X date on X field — and itwould spit out exactly what endangered species are in yourarea, what the (application) rate is,” he related. “That causeshuge concerns from a private information standpoint.

“This also would give EPA the excuse to change the ‘label’more frequently. As farmers, we buy stuff and put it in our barnso we have it available.

“In the meantime, EPA could change the label. If it tookcorn off the label of a pesticide and you still have it, what areyou going to do with it? You can’t legally apply it; you can’tlegally resell it. You have a product in your inventory and can’tuse it.”

AFBF submitted its concerns to EPA jointly with nationalcorn, wheat, cotton, rice, sorghum, and produce groups.

Under the current system, growers generally can continueto use a product according to container label as long as theypossess the product. Use is prohibited when EPA issues a usecancellation date or a product’s no longer registered in a statethat prohibits use of unregistered pesticides.

Product labels currently are available on various privatewebsites for growers who’d prefer online access, Wegmeyernoted. Chemical manufacturers have joined farm groups inopposing EPA’s proposal.

In comments to EPA, AFBF and others recognized thateventually, “some improved means of communicating labelinformation might be needed.”

“Should that need arise, we will work cooperatively with EPAon the issue to assure that the needs of the agency and produc-ers are taken into account,” they stated. — Martin Ross

Equipment manufacturers oppose planThe Association of Equipment Manufacturers (AEM) called

on Congress, Transportation Secretary LaHood, and the FederalCommunications Commission to stop the threat in the U.S. toglobal positioning systems (GPS) posed by LightSquared, thecompany planning to deploy a nationwide broadband Internetinfrastructure of 40,000 ground stations.

AEM, a founding member of the Coalition to Save Our GPS,warned the planned ground stations likely would render com-mercial and private GPS signals unreliable and in some cases“useless” and that implementing LightSquared’s plan would addunnecessary burdens to the U.S. economy.

A study just released by the Coalition to Save Our GPS indi-cates more than 3.3 million jobs depend on GPS technology andthe plan’s direct economic cost to U.S. commercial GPS usersand manufacturers could be $96 billion.

Allowing LightSquared to move forward with its plan wouldheighten uncertainty at a time when the U.S. already is economi-cally challenged, the association maintained. Implementationreportedly would hurt two key machinery manufacturing areasrepresented by AEM — agriculture, and construction.

According to one AEM member company, the LightSquaredplan could degrade most if not all GPS receivers as far as 22miles from one of the 40,000 transmitters. Farmer businessplans depend on GPS information such as yield data, harvestweights, moisture data, and other precision ag data, AEM noted.

productioN

Page 5 Monday, July 4, 2011 FarmWeek

Some people who follow the ag commoditymarkets will go to great lengths to get theirhands on USDA reports prior to their officialrelease (see the movie “Trading Places” as acomedic example).

But anyone who was watching the last twoweeks was treated to sneak peeks at two keyUSDA reports without lifting a finger. Wire service reports containing informationabout the June 30 acreage/grain stocks reportand the June 24 quarterly hogs and pigs reportwere inadvertently released early to the public.

Information about the acreage/grain stocksreport slipped out 2 minutes early while thehogs and pigs report got loose 15 minutes pri-or to its scheduled release.

Both incidents were being investigated byUSDA’s Agricultural Statistics Board.

“We’ve obviously got a problem,” HubertHamer, chairman of the Ag Statistics Board,told Reuters news service. “We think we have atelecommunication problem, but we can’t vali-date that.”

USDA’s National Agricultural StatisticsService in a news release stated the mishap pri-or to the acreage/stocks report was caused bya failure of the Ag Statistics Board’s telecom-munications control switch, which is beingreplaced.

Hamer said USDA expects to have theproblem fixed prior to the crop supply anddemand report on July 12.

USDA report leaked for second week in a row

Large stocks, acreage estimates sink crop marketsBY DANIEL GRANTFarmWeek

The nation on Monday cele-brated Independence Day, butit appears there will be no fire-works in the crop markets thisweek or any timesoon.

USDA lastweek shockedthe trade withhigher-than-anticipated quar-terly grain stocks estimates. Itsacreage estimate for corn alsowas well above trade expecta-tions.

“Overall, the quarterlystocks report is pretty nega-tive,” said Jerrod Kitt, marketanalyst with the Linn Group,during a teleconference hostedby the CME Group in Chicago.

Quarterly stocks last weekwere estimated at 3.67 billionbushels for corn (down 15 per-cent from last year but wellabove the average trade guessof 3.3 billion bushels), 619million bushels for soybeans(up 8 percent from a year agoand above the average tradeguess of 596 million bushels),and 861 million bushels forwheat (down 12 percent froma year ago but well above theaverage trade guess of 826 mil-lion bushels).

“Corn opened limit-down(Thursday) after the shockinglyhigh number in the stocksreport,” said Terry Roggen-sack, market analyst with theHightower Report.

USDA last week also sur-prised the trade with a corn

acreage estimate of 92.3 mil-lion acres, up 5 percent fromlast year. The estimate is higherthan the March estimate (92.2million acres) and not lower, asthe trade expected.

Corn plantingsincreased insome parts ofthe westernCorn Belt(including Iowaand Nebraska)

that more than offset acres lostto flooding or that wereswitched to other crops due toplanting delays.

“There are some extremesin the report compared towhat the trade thought,” saidJim Bower, analyst with BowerTrading, during a teleconfer-ence hosted by the Minneapo-lis Grain Exchange. “Evenwith significant (planting)delays, (the corn acreage pro-jection) is above the high endof trade estimates.”

Meanwhile, planted soybeanacreage was projected at 75.2million acres, down 3 percentfrom a year ago. All wheatacres totaled 56.4 million, up 5percent from last year.

In Illinois, planted acreswere estimated at 12.5 millionfor corn and 8.9 million acresof beans, slightly below year-ago levels, while wheat acrestotaled 760,000 compared to arecord-low 330,000 last year.

“Producers (with record-high corn prices) had everyincentive to plant as many cornacres as possible,” Roggensacksaid. “Now we’re looking at

reasonably comfortable sup-plies of old and new crop.”

Not everybody associatedwith the crop market was dis-

appointed to see last week’sbreak in prices.

“Livestock producers reallyneeded this break,” Kitt said.

“There’s been a dramaticdecrease in forage” due to thedrought in the southern U.S.

Roggensack said lower grainprices will help improveethanol margins, allow Chinato restock its grain reserves,and possibly allow pork pro-ducers to expand while beefproducers eventually mayboost the number of cattle infeedlots.

“There is plenty of demandif prices come down,” the ana-lyst added.

FarmWeekNow.com

For details on the USDA reportsand traders’ comments, go toFarmWeekNow.com.

IPPA to host visioning sessionThe Illinois Pork Producers Association (IPPA) on July 19 will

host a visioning session for pork producers at the Illinois CornGrowers Association office in Bloomington.

IPPA staff at the event will provide updates on programs andactivities. Attendees will receive an opportunity to review currentIPPA programs and discuss new goals and priorities.

The input will help shape IPPA’s 2012 budget in checkoff andnon-checkoff program areas.

The visioning session also will feature two speakers: TomHebert, an environmental consultant with the National Pork Pro-ducers Council and former USDA undersecretary; and Chad Hart,Iowa State University Extension economist.

Hebert will discuss rules for operations defined as concentrat-ed animal feeding operations (CAFO). Hart will present a seminarabout livestock gross margin insurance and what producers needto know to use this risk management tool.

“I will discuss how I see EPA’s (Environmental ProtectionAgency) implementation of the CAFO rule unfolding andevolving, specifics for what will be expected of producers as aresult, and how CAFO rule enforcement will come into play,”Hebert said.

“I also will discuss how EPA’s broader effort to focus on stateshaving and using Clean Water Act numeric nutrient criteria coulddefine pork producers’ success or failure.”

Pork Producers may register for the visioning session online at{www.ilpork.com} or obtain more information by contacting theIPPA office at 217-529-3100.

All attendees will receive food, beverages, and tickets for theNormal Cornbelters’ minor league baseball game, which will fol-low the session.

A special “Salute to Pork” night will be held July 19 at theCornBelters game, which begins at 6 p.m. at The Corn Crib stadi-um located on the northwest side of Normal.

‘Corn opened limit-down (Thursday) afterthe shockingly high number in the stocksreport.’

— Terry RoggensackThe Hightower Report

Bernie Walsh, Durand, Winnebago County: The temper-atures are going up and themarkets are going down. That’senough to give anyone aheadache. The corn and beansstill look good in our area. Wehave missed all the rains fortwo weeks now and with the hotweather that is forecast, the

heat is bound to have an effect sooner orlater. The wheat is turning color fast, but isstill 10 days to two weeks from being readyto harvest. Lots of second-cutting hay wasmade this past week and most of the beanswere sprayed the second time. We will haveto see if July brings more fireworks to themarkets.

Pete Tekampe, Grayslake, Lake County: A hot, dry weekin Lake County. No measurablerain for the week. Most of thecorn is looking good with somemore than waist high and havinga dark green color. It’s growingfast. Beans are also lookinggood. Spring grains are lookingbetter. Quality hay was baled

last week. Hope everyone had a safe holi-day.

Leroy Getz, Savanna, Carroll County: Sunny, windy, andwarm weather has really driedthings up. A little rain would beappreciated. I had 3.7 inches ofrain for the month of June, butonly 0.15 of that came in thelast two weeks. But listen, youcan hear the corn grow, and it’swell above my head now. Great

hay weather. Second crop is excellent qual-ity, but quantity is a little down. We canalways buy poor hay, but can’t always makeexcellent alfalfa. Growing degree unitstotaled 995.

Ryan Frieders, Waterman, DeKalb County: It was a produc-tive week here. We finished spray-ing herbicides on all the corn andthe soybeans. We had somewindless, sun-filled days that wereperfect for spraying. The wheat ischanging colors and should beready to harvest soon. There alsohas been a lot of hay cut and

baled.

Larry Hummel, Dixon, Lee County: Last week’s weatherwas just what the crops needed.Plenty of sunshine and warmdays have really improved thelooks of both the corn and soy-beans. Even the field of cornthat I was complaining aboutlast week is starting to turn thecorner. It definitely couldn’t win

a beauty contest, but it’s looking better andI will sleep easier. Corn prices have takenone on the chin and its knees are buckling.Funny how just a couple of weeks ago, Iwas worried that I was a little too aggres-sive with my sales.

Ken Reinhardt, Seaton, Mercer County: A dry week, finally.Soybeans got sprayed easily,compared to the trials of sprayingcorn. There was hay finally maderain-free. There are a couple ofpatches of wheat that are gettingclose to ripe. Corn is still a weekor so behind normal develop-ment.

Ron Haase, Gilman, Iroquois County: Major farmeractivities last week includedpost-emergence herbicide ap -plication in corn and soybeanfields, row cultivating in soy-bean fields, sidedressing nitro-gen in corn, mowing roadsides,hauling grain and the begin-ning of wheat harvest. These

activities all occurred after the 0.4 to 0.6 ofan inch of rain that we received onJune 27. Right now, as I write this reportFriday, it is beginning to rain. Storms thatpassed to the east and west of us Fridaymorning included hail. Area cornfieldsrange from the V-6 to V-11 growth stage.Most corn is V-8 to V-10. Area soybeanfields range from the V-2 growth stage tothe R-2 or full bloom growth stage. Afterthe release of the USDA report, the localclosing bids for June 30 were: nearbycorn, $6.63; new-crop corn, $5.90; nearbysoybeans, $13.10; new-crop soybeans,$12.62.

Mark Kerber, Chatsworth, Livingston County: It’s Julyand we finally are caught upafter having a dry week to work.Roads and waterways aremowed, corn is sprayed, andhalf the beans are sprayed. Nowit is time to clean up machinery.Corn looks pretty good in gener-al with a few yellow spots and

holes where water saturated the soils.Soybeans are starting to grow with warmtemperatures and drier soils. Wheat harvestis just beginning as it will be followed up withdouble-crop soybeans for some. A five-tractland sale last week had the attention of areafarmers and investors. Prices ranged from$6,500 to $10,000 per acre, depending onsoil type. The corn market crashed afterrelease of the acre and stocks reports. Will itcome roaring back again? Soybean reportwas friendly.

Brian Schaumburg, Chenoa, McLean County: Anothergreat week for crop develop-ment. GDUs are about averagewith 1,175 to date. June rainfallat about 4 inches inches is aboutaverage as well. Post-spraying iswrapping up. Some tried aerialapplications of ammonium nitrateWheat is nearing maturity. Seed

growers project their harvest to be twoweeks later than normal. Corn, $6.17; $5.40fall; soybeans, $13.17; $12.55 fall; wheat,$5.53.

Steve Ayers, Champaign, Champaign County: Theweek started with 1.5 inches ofrain, and the temperatureswarmed as we moved throughthe week. Ideal growing condi-tions continue as farmers arebusy spraying, mowing, scout-ing, and baling. Farmers arebeginning to cut wheat. Last

week, I read numerous Cropwatcherreports that had torrential rains in the 6-plus inch range that we are blessed to havemissed so far. Fair season is beginning.See you at Penfield at Historic Farm Dayson July 7-10.

Wilfred Dittmer, Quincy, Adams County: A clear Fridaymorning after all the stormyweather of the past weekend(June 25-26) and all the relatedclean-up afterward. What ablow! I’m surprised that there isany corn left standing the waythe storm took down so manytree limbs and entire trees and

utility poles. Rainfall for the month comes to13.2 inches, which I think is a record. Fieldshave not dried out much since last report,and consequently, sprayers have not hadmuch opportunity to roll. I have noticedsome small hoppers while mowing fieldroadways and a few Japanese beetles onsome ornamentals in the yard. Wheat fieldslook ready to harvest and some are workingat their hay crop. Hope you had a safe holi-day weekend.

Carrie Winkelmann, Tallula, Menard County: We saw 0.4of an inch of rain last week on ourfarm. The dry weather led manyfarmers in the area to beginwheat harvest June 30, althoughI haven’t heard much aboutyields. Several farmers havebeen cutting hay. We have someon the ground and should be bal-

ing it soon. Corn in the area is throwing tas-sels. The dry weather has been an aid to thesoybeans, which were showing signs of sep-toria in the wettest areas.

David Schaal, St. Peter, Fayette County: On Saturdayafternoon (June 25), rain camethrough the area. Later thatnight storms dumped up to5 inches in the area. Along withthat came wind and some hail.Creeks in the area were as highas they have been for awhile, ormaybe as high as ever. Water

again has taken a toll on river and creekbottom ground, along with low-lying areasin fields. The bigger corn on drained fieldslooks really good, but corn in low areas orsmaller corn is struggling. Wheat harvestis drawing to a close around here. Sincethe rain, the test weight has fallen offsome. USDA enlightened us on how every-thing is, which drove markets limit-downafter the report.

Tom Ritter, Blue Mound, Macon County: After 1 inch ofrain over the previous weekend(June 25-26) we had a dryweek and were able to get inthe field to catch up on somemuch-needed spraying. Muchof the corn is too tall to besprayed by a regular sprayer,and that is putting a little extra

pressure on the crop service companies.Soybeans also are much in need of spray-ing and we’re having to use a little higherrate of crop protectants to control theweeds. Started to see the first tassels popout last week on early-planted corn, butthose fields are few and far between.Overall, the last two weeks have taken amajor toll on corn in the lower ground.Many of those acres are a complete loss orare stunted with a severe yield reduction inthose areas. It will be hard for the higherground to make up the much-needed differ-ence in yield. A good corn crop is still pos-sible. We are seeing a lot of aerial applica-tion of corn fungicides being applied.Soybeans have definitely suffered with themajor rains. During this past month, we hadmore than three times our normal amountof rainfall. Wheat is finally getting harvest-ed. I have heard of no reports of yields yet.

Jimmy Ayers, Rochester, Sangamon County: Anotherrainy week. We received 6.5inches last weekend (June 25-26). It’s been extremely wet. Inthe Waverly area, there was areport of 17 inches of rain in athree-week period. Corn in thelow areas is really strugglingand has a yellow cast to it. A lot

of those areas are hidden from the roadnow by the taller corn. The beans also havestruggled with the excess moisture. Therewasn’t a lot of spraying done last week.Some of the earliest beans I checked onwere V-5 and V-6. The earliest corn is tas-seling, but there is still corn that is not yet afoot tall. There is quite a range with the dif-ferent planting dates of the crop. Wheat har-vest got started last week. I think it is doingpretty well. The ground is very wet, though.We’re having trouble just driving through thefields and have to back out of differentplaces. Seems like the fall of 2009 when wehad so much water and mud. The cropreport took away quite a bit of our incentiveto sell. This week’s weather should be prettydecent week for making hay.

Doug Uphoff, Shelbyville, Shelby County: We received1.5 inches of rain last weekend(June 25-26). North of Findlayonly had 0.5 of an inch andsouth of us had 2-plus inches inplaces. Wednesday, we wereable to get in and cut wheat thattested 13.3 percent and made83 bushels an acre. Luckily, I

delivered some of it before the blow up inthe market Thursday. Wheat was worth 77cents less Thursday after the close becauseof limit-down protection. It’s unbelievablethat nearby corn was down 80 cents. I thinkwe need to fix the USDA reporting system. Ithink it’s broken. But, maybe not.Sometimes I think they just grab numbersout of the air. We baled about 1,200 smallsquare bales of wheat Thursday. We alsorolled some of it up. Bean spraying is beingfinished up and roadsides are beingmowed. Some corn is tasseling and othersare at V-7 to V-8 and determining ear size.Hope everyone had a happy and safeFourth of July. Thank a veteran for our free-dom we often take for granted, and Godbless the USA.

Ted Kuebrich, Jerseyville, Jersey County: Another weekof rain in Jersey County. Wereceived 2.5 inches and a lot ofwind. The wind bent some ofthe corn over, but it does notlook like any broke off. Theservice company is still spray-ing beans with Roundup. Cornthat was planted the first week

of April has started to tassel. Theearly-planted beans in narrow rows arestarting to close up the row. Wheat harvestis still under way in between rainstorms. Thewheat has a test weight running between 57to 60. Growing degree days are at 1,610.Prices at Jersey County Grain, Hardin:Cash corn, $6.26; fall corn, $5.84; cashbeans, $13.10; fall beans, $12.49; June/Julywheat, $5.91.

FarmWeek Page 6 Monday, July 4, 2011

CROPWATCHERS

Dean Shields, Murphysboro, Jackson County: After makingmy report last week, the weekend(June 25-26) turned out to be avery wet one with several inchesof rain. Some parts of SouthernIllinois got up to 6 inches. Therewas some localized floodingthrough the creek bottoms, etc.There was no fieldwork last

week. Some of the earlier corn is tasselingand pollinating. Beans seem to be growingpretty decent and a lot of guys are sprayingthem. The wheat is pretty well finished inJackson County. Word is that it was a prettydecent crop with good test weight. The qualitywas fairly decent also, so everyone was happyabout that. Jackson County still has a problemwith the Big Muddy and Mississippi Rivers. Myriver bottom area is still flooded. We have notbeen able to open the flood gates to let thewater out into the Mississippi, and it looks likemy planting season is over because of lack oftime to get everything dried out. We will tryagain next year to get a little bit of crop in.Hope everybody had a happy Fourth of July.

Ken Taake, Ullin, Pulaski County: We had some heavy rainson Sunday, June 26. Here on ourfarm, we received about 3.25 inch-es on Sunday and another 0.3 ofan inch on Monday. Many peoplehad more than 7 inches. That putquite a bit of crop under water inthe creek bottoms. We were fortu-nate in that we had a little that

went under, and the water came off pretty fast.There are some people talking about still try-ing to replant even at this late date. We man-aged to get back in the field on Thursdayspraying some soybeans. Things that didn’tget too much water or go under water aregrowing well. Beans still look kind of spotty,but things are looking better. It continues to bean eventful and frustrating crop year. Pleaseremember to take time and be careful.

Rick Corners, Centralia, Jefferson County: Breathtaking!We actually went four days with-out rain after 3-4 inches lastweekend (June 25-26). I don’tbelieve I have seen such sickcorn and beans as some of themlook. Some of the beans are 4inches tall with only three leaveson the very top. Most of the low

spots in the fields this year are going to bebare. By the time you read this, wheat har-vest will finally be about done. Planting beansin those ruts should be very interesting.

Kevin Raber, Browns, Wabash County: Another month hasgone by. Hard to believe it’s July.I hoped to finish wheat harvestFriday. It’s too wet to plant dou-ble-crop beans or to replant thedrowned out spots of the first-crop soybeans. Some fields I’mleaving a track when I spray.Hope everyone had an enjoyable

and safe Fourth of July.

Randy Anderson, Galatia, Saline County: Since my lastreport, we have received some-where around 11 inches of rain.We have seen significant fieldflooding and the corn crop isgoing backward. There are someacres that are going to be a totalloss because of the significantamount of rainfall, especially in

the river bottom area. I would rate the corncrop at somewhere between 25 percent goodto excellent and the remaining 75 percent fairto good. I would rate the bean crop at some-where around 60 percent fair to good and 40percent kind of mediocre. Excessive rains arethe main problem. Wheat was surprisinglygood — better than I anticipated after all ofthe rain we received. I have yet to finish plant-ing double-crops on my wheat groundbecause of all of the excess rain.

Dan Meinhart, Montrose, Jasper County: Heavy rains hit thearea the weekend of June 25 and26. Amounts varied from 2 to 7inches. Reports of total rainfall forthe month of June are in the mid-teens. On Friday, showers beganfalling in the area. The only fieldactivity last week was combiningwheat and baling straw. Several

bean fields need to be planted and replanted,as well as the double-crops. Fields are show-ing extreme stress due to excessive moisture.Showers were in the forecast for the weekendwith hot, humid temperatures.

Dave Hankammer, Millstadt, St. Clair County: We hadthunderstorms move through thearea during the evening of June25. I received 4 inches of rain atmy home in Millstadt. However,there was a report of 5-plus inchesat a site approximately 6 milesnorth of town. High winds accom-panied the storm, causing some

green snap in shoulder-high corn. Floodingoccurred in low-lying fields going overknee-high corn in some areas. The creek bot-tom field we still need to plant was flooded forthe second time in June. Wheat harvest wasstalled due to the storm. A local elevatormanager estimated 50 percent of the wheathas been harvested. Yields ranged from 60 to80 bushels per acre with test weights of 52 to61 pounds. Some straw and hay was beingmade by the end of last week. Some of theearly-planted corn is starting to tassel.Average height of the corn crop is waist-highwith the latest corn only 6 to 8 inches inheight. Wet areas in corn and soybean fieldsare obvious by the ever-increasing yellowspots in the fields. Have a safe week.

Page 7 Monday, July 4, 2011 FarmWeek

CROPWATCHERS

Reports received Friday morning. Expanded crop and weatherinformation available at {www.farmweeknow.com}.

Illinois wheat harvest nearly half done despite rainBY DANIEL GRANTFarmWeek

Rain slowed wheat harvestat many locations last week, butfarmers as the week began hadmanaged to harvest nearly half(43 percent) of the cropstatewide.

The amount of wheat har-vested last week was up dra-matically from the previousweek when just 4 percent ofthe crop was in the bin, butharvest was 8 percent behindthe five-year average pace,according to the National Agri-cultural Statistics Service Illi-

Cripe, who last fall plantedabout twice as much wheat onhis farm as normal due to goodplanting conditions and strongwheat prices. “Quality and testweights (about 58 to 62pounds) really have been prettygood.”

It’s been a different story,though, for some farmers whowould like to plant double-cropsoybeans.

“(Farmers) are having a tus-sle getting it in,” Anderson said.“In the last two weeks (June 14to 27) we received just over 10inches of rain.”

Anderson said some farmersin his area already gave up onbaling wheat straw due toextremely wet conditions.

Topsoil moisture in the statelast week was rated 60 percentsurplus, 38 percent adequate,and 2 percent short.

Overall, though, soybeanplanting as of the first of lastweek was nearly complete (97percent compared to the aver-age of 94 percent) while thegrowth of the corn crop (aver-age height of 34 inches) wasbehind the average pace for thelast week of June (42 inches).

nois field office.“We’ve had six to seven

inches of rain, so harvest hasbeen at a halt,” Ken Cripe ofCripe Grain Co. near Vandaliaand a Fayette County wheatgrower, said at the middle oflast week as he prepared toreturn to the field. “If we getthree to five more good days,we’ll get it done.”

Cripe estimated wheat har-vest in his area the middle oflast week was 50 to 60 percentcomplete.

Farther south, Jim Ander-son, a farmer in Williamson

County and Illinois FarmBureau District 18 directorfrom Thompsonville, last weekestimated close to three-quar-ters of the wheat crop was har-vested in his area.

“It’s a good wheat crop,”Anderson said. “Yields seem tobe high, even for a good yearand even with all the rain anddisease pressure.”

Anderson and Cripe peggedwheat yields so far this harvestin the 60- to 75-plus-bushels-per-acre range.

“Yields are a whole lot betterthan we first anticipated,” said

Analysts: Weather concerns will hang over marketsUSDA last week eased a lot

of fears about tight crop sup-plies as it projected quarterlystocks of corn, soybeans, andwheat are above trade expecta-tions.

USDA also projected U.S.farmers, despite a wet spring,managed to plant the second-largest corn crop (92.3 millionacres) since 1944.

However, USDA’s projec-tions are subject to changedepending on how the weathershapes up the next severalmonths, according to marketanalysts Jerrod Kitt of the LinnGroup, and Terry Roggensackof the Hightower Report.

“Right now, crop conditionsare looking pretty good,”Roggensack said during a tele-conference hosted by the CMEGroup. “But if heat moves

tional drought, according to theU.S. Drought Monitor (seegraphic). More than half thecorn crop (51 percent) last weekwas rated poor or very poor inthe Lone Star State.

“Certainly, there’s going to

be no dryland corn, sorghum isgoing to be questionable, and ifit continues like this, there willbe no dryland cotton to speakof,” said Nicholas Kenny, TexasAgriLife Extension Service irri-gation specialist.

Soybean yields also could bedragged down by the drought inthe South. About 20 percent ofthe U.S. soy crop is grown out-side the Midwest, Roggensacknoted.

On the flipside, drowned outareas of fields in the North did-n’t show up in the latest USDAreport.

“Wet spots are not countedin acres, they’ll show up inyields,” Kitt said. “So there is astrong possibility of a down-ward revision (to crop produc-tion) after August.” — DanielGrant

back into the Midwest,” it couldcreate issues.

Corn typically is susceptibleto weather-related losses thesecond half of July during polli-nation and soybeans generallyare vulnerable to dry weather inAugust during pod fill.

Meanwhile, the analystsquestioned whether plantedcorn acres will remain as highthis season as USDA projectedlast week. USDA reportedly did-n’t have all the prevent-plantdata for its report.

For example, USDA loweredcrop acres in North Dakota byless than 2 million but a separateanalysis estimated acreage thereis down by about 6 millionacres, mostly due to flooding.

Flooding along the Mississip-pi River alone, from Illinois toLouisiana, caused between $850

million and $2 billion in dam-age, according to John MichaelRiley, ag economist at Mississip-pi State University.

Elsewhere, more than 70percent of Texas as of a lastweek was experiencing excep-

Economic DEvElopmEnt

FarmWeek Page 8 Monday, July 4, 2011

Central Illinois group throws cap into BCAP ringBY KAY SHIPMANFarmWeek

A group of Central Illinoisfarmers and potential biomassbuyers has applied to the FarmService Agency (FSA) as a bio-mass crop assistance program(BCAP) project area this year.But the group also is taking along-range view of growing,selling, and using biomasscrops.

The Prairie State BiomassBCAP area covers 29 CentralIllinois counties from the Illi-nois-Indiana border to theMississippi River.

A decision on whether theproject would be selected forfunding was imminent.

“We’re hopeful we’re notdone with it yet. If not thisyear, then next.

“We’re going to move for-ward in one form or another,”said Eric Rund, a Pesotumfarmer and driving forcebehind Prairie State Biomass.

A BCAP project area is ageographic area in which oneor more farmers have agreedto grow and sell eligible bio-

mass crops to one or morebiomass conversion facilities.Farmers and conversion facili-ties must apply jointly to theFSA.

If Prairie State receivesfederal approval, all farmerswithin the 29 counties mayapply to FSA for payments upto 75 percent of the cost toestablish perennial biomasscrops as well as receive land

payments for five years. Rund encouraged interested

farmers within the 29 countiesto e-mail erund@Green-FlameEnergy.com or call 217-867-2511 for information.

FSA has asked Prairie Stateto submit an environmentalassessment of its proposedproject, Rund said.

He is looking on the posi-tive side of a request for moreinformation to add to analready extensive application.

“It’s not a loss because we’dprobably need an environmen-tal assessment . . . no matterwhat,” he said.

Biomass buyers are animportant project component,and Prairie State received acommitment and support fromseveral within the 29-countyarea.

Prairie Power Inc., an elec-trical cooperative in PikeCounty, committed to buy thebiomass.

The co-op completed anengineering study to convertfrom coal to biomass as itsprincipal fuel. It also initiated a

biomass test burn at its gener-ating plant on the Illinois Riv-er. The co-op could burn up to120,000 dry tons of biomassannually.

Other potential buyersinclude: Eastern IllinoisUniversity, which has con-verted its Charleston powerplant to biomass; ParklandCollege, which is planningto use biomass to heat newChampaign campus build-ings; and the University ofIllinois, which is planning to

reduce its coal use.Even with the potential

buyers, a biomass industry,especially growers, needs sup-port to get started, accordingto Rund.

BCAP remains the onlyfarm program to support“actual growing of biomasscrops,” compared to the mil-lions the government isspending to convert thosecrops, Rund noted.

“There’s an imbalance, andwe need to be looking at it.”

Central Illinois groups eyeingeconomic impact of local food

Several Central Illinois entities have put a potentialprocess-distribution center for locally grown foods on theirplates.

“This project is much about farmers and agriculture. It’salso about sustaining and supporting your local community.The whole idea of a local food hub is that we should rely oneach other for the local economy,” said Marty Vanags, chiefexecutive officer of the Economic Development Council(EDC) of Bloomington-Normal.

Last week, representatives of several community collegesand universities, government agencies, economic development,local govern-ments, andother groupsdiscussed theproject andthe possibleeconomicimpact duringa meeting atHeartlandCommunityCollege, Nor-mal.

USDAdefines a food hub as a centrally located business facility foraggregation, storage, processing, distribution, and marketingof food grown within a local or regional area.

The proposed project area covers 32 Central Illinois coun-ties. The hub would be located in the Bloomington-Normalarea, which has a central location from several major urbanmarkets.

The Illinois State University dining services has committedto buy local foods for its Normal campus. Bloomington-Nor-mal’s EDC will continue to be part of the project’s local steer-ing committee, according to Vanags.

Ken Meter, president of Minneapolis-based CrossroadsResource Center, discussed economic information about agri-culture production in the 32-county region and support for theproposed food hub project.

Meter estimated a small shift in production and marketingcould make a difference in the local economy.

He pointed out many sectors were represented at last week’smeeting: “You have a rare mix of people from different walksof life.” — Kay Shipman

Founding SIU ag dean diesWendell E. Keepper, the first dean of what would become

the College of Agricultural Sciences at Southern Illinois Uni-versity, Carbondale, has died at age 100.

Mr. Keepper arrived at Carbondale in 1950 to take over anagriculture department with five faculty members and a budgetof a little more than $70,000.

When he retired in 1974, the School of Agriculture hadgrown to 59 faculty and staff, more than 850 graduate andundergraduate students, and an annual budget of more than$1.5 million.

His funeral was last week in Carbondale. He is survived bytwo brothers and a daughter.

‘The whole idea of a localfood hub is that we shouldrely on each other for thelocal economy.’

— Marty VanagsBloomington-Normal Economic Development

Council

From the couNties

Page 9 Monday, July 4, 2011 FarmWeek

CARROLL — TheYoung Leaders Com-

mittee will sponsor its annu-al Harvest for All activitySaturday. If you have cornto donate, call the FarmBureau office at 815-244-3001.

• The annual membershipappreciation breakfast willbe from 6:30 to 10:30 a.m.Friday, July 15, at the Naa-man Diehl auditorium.

CASS-MORGAN —

The date indicated inthe current edition of News& Notes for the annualmember appreciation din-ner/meet your legislatorsprogram is incorrect. Thecorrect date is Thursday,Aug. 4.

CHAMPAIGN —

Farm Bureau willsponsor toolshed meetingsWednesday, July 13, at thefollowing times and loca-tions: 8 a.m. Gifford; noon,Champaign; and 3 p.m. VillaGrove. Mark Gebhards, Illi-nois Farm Bureau director ofgovernmental affairs andcommodities, will be thespeaker. Call the FarmBureau office at 352-5235,see the July newsletter, orvisit the website

{www.ccfarmbureau.com}for specific locations ormore information.

• The Tractor SafetySchool will be Aug. 5-6 andAug. 19-20 with classes from4:30 to 7:30 p.m. Fridays andfrom 8 a.m. to 3 p.m. Satur-days. Cost is $40 for Cham-paign County residents and$80 for out-of-county resi-dents. Deadline to register isJuly 15. Call the FarmBureau office at 217-352-5235 or visit the website{www.ccfarmbureau.com}for more information.

FORD-IROQUOIS —

The Young Ag Lead-ers will sponsor a farm valuebreakfast from 6:30 to 8:30a.m. Friday at the south foodstand at the Ford CountyFair, Melvin.

LASALLE — TheMarketing Committee

will sponsor a bus tripWednesday, July 20, to theFair Oaks Dairy Farm, theAlbanese Gummi Factory,and the Chicago Speedway.Cost is $75 for members and$85 for non-members if paidby Friday. After Friday, thecost is $85 for members and$95 for non-members. Callthe Farm Bureau office at

815-433-0371 for moreinformation.

• Season passes for theLaSalle County Junior and 4-H Fair are available at theFarm Bureau office. Cost is$15. The fair dates are July12-17.

LEE — Lee and BureauCounty Farm Bureaus

will sponsor their annual golfouting at 9 a.m. Friday atHunter’s Ridge Golf Course,Princeton. Proceeds will bene-fit their Agriculture in theClassroom programs. Cost is$35 for Farm Bureau membersand $55 for non-members.Registration includes golf, cart,and lunch. Call the FarmBureau office at 815-857-3531or e-mail leecfb@comcast.netfor more information.

• The Young LeadersCommittee will sponsor itsannual cookout at 6:30 p.m.Saturday, July 16, at Brad andErin Shippert’s farm. Theevent is open to FarmBureau members betweenthe ages of 18 and 35. Bringa dish to pass and lawn chair.Call the Farm Bureau officeat 815-857-3531 or e-mailleecfb@comcast.net fordirections.

• Lee and WhitesideCounty Farm Bureaus willsponsor a bus trip Wednes-day, July 20, to see theChicago Cubs vs. thePhiladelphia Phillies game atWrigley Field. Cost is $60for members and $65 fornon-members. Registrationis on a first-come, firstserved basis. Call the FarmBureau office at 815-857-3531 for more information.

• Farm Bureau and the LeeCounty Fair Association willsponsor an American RedCross blood drive from noonto 6 p.m. Thursday, July 28,during the Lee County 4-HFair and Junior Show, LeeCounty Fairgrounds. Call theFarm Bureau office at 815-857-3531 or e-mailleecfb@comcast.net if you canvolunteer or donate. Walk-insare welcome.

MONTGOMERY —

The Prime Timerswill meet at noon Wednesday,July 20, for a barbeque porkluncheon and meeting at theFarm Bureau office. Cost is$8. Jerry Dowding will providethe entertainment with flutemusic. Call the Farm Bureauoffice at 217-532-6171 by Fri-

day, July 15, for reservationsor more information.

• The Prime Timers willsponsor a bus trip Tuesday,Aug. 2, to Fairmount Park,Collinsville. Cost is $32,which includes bus and buffetmeal. Betting and cocktailsare extra. Call the FarmBureau office at 217-532-6171by Friday, July 15, for reserva-tions or more information.

PEORIA — Deadlineto order blueberries is

Friday, July 15. Cost is $10for a five-pound containerand $20 for a 10-pound con-tainer. Delivery to the FarmBureau office will be Thurs-day, July 21.

VERMILION — TheVermilion County

Farm Bureau member appre-ciation night will be Friday,July 15, to see the DanvilleDans vs. the Nashville Out-laws baseball game. Freetickets for Farm Bureaumembers are available at theFarm Bureau office.

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

Calling all candidates: IFB to offer campaigning seminarBY KAY SHIPMANFarmWeek

Candidates for any office sharea common denominator — theelection campaign. Illinois FarmBureau will offer a workshopAug. 11 through 12 at the IFBoffice in Bloomington to helppotential candidates prepare for acampaign. The registration dead-line is July 25.

“This course is applicable toany campaign — whether it’s fora school board or a governor’soffice. It’s for anyone who wantsto get involved in public serviceand make a difference,” said Kevin Semlow, IFB director of statelegislation. “This year is a unique opportunity in light of theredistricting for county boards and other offices.”

Workshop participants willwork as teams to run a campaignfor a mock candidate and com-pete with other teams in aneffort to get their candidateelected.

Each team’s campaign infor-mation will be assessed based on real campaign situations. Teamswill learn why different messages and answers resonate morewith voters than others.

Workshop topics will include: selecting issues, building anorganization, raising and managing funds, managing a campaign,and getting voters to the polls.

The program is open to anyone who is considering runningfor office, is wanting to work for a candidate, or is married to apotential candidate.

A $100 registration fee includes meals and materials. Accom-modations are extra.

For more information or to register, contact your countyFarm Bureau or call Kayla Arnolts of the IFB governmentalaffairs and commodities division at 309-557-3554 or e-mail herat karnolts@ilfb.org.

FarmWeekNow.comVisit FarmWeekNow.com oryour county Farm Bureau toregister for the campaignschool.

proFitability

FarmWeek Page 10 Monday, July 4, 2011

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $14.00-$46.51 $34.6440 lbs. $37.00-$66.65 $59.2450 lbs. n/a n/aReceipts This Week Last Week 29,773 25,138*Eastern Corn Belt prices picked up at seller’s farm

MARKET FACTS

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

This week Prev. week ChangeCarcass $94.65 $100.42 -5.77Live $70.04 $74.31 -4.27

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn6-23-11 8.7 20.6 28.96-17-11 4.3 21.0 43.4Last year 4.6 18.3 39.7Season total 1418.3 74.6 1447.4Previous season total 1367.0 54.7 1492.0USDA projected total 1540 1295 1900Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 110.50 111.00 -0.50Heifers 110.47 112.01 -1.54

USDA five-state area slaughter cattle price

This is a composite price of feeder cattle transactions in 27 states.(Prices $ per hundredweight)

This week Prev. week Change 134.02 130.08 3.94

CME feeder cattle index — 600-800 Lbs.

Slaughter Prices - Negotiated, Live, wooled and shorn 120-155 lbs. for188.47-212 $/cwt. (wtd. ave. 199.70); dressed, no sales reported.

Lamb prices

Where has all the propane gone? Stocks below averageBY RANDY MILLER

If your Father’s Day includ-ed a new grill, the onlypropane tank you probably are

worried abouttoday is theattached 20-pound cylin-der. Howev-er, summer isthe time tomake graindrying andhome heatingplans for the

upcoming season. Propane is produced from

both crude oil and natural gas,but normally follows crude oilprices. Propane marketsthroughout 2011 have moved

in tandem with crude oil untilrecently. Lack of inventorybuilds this summer have main-tained propane prices evenwith falling crude oil prices.Currently, propane prices arenearly 70 percent of crude oilvalues.

Let’s look at some of thefactors which likely will guidepropane through the remain-der of this summer:

Propane stocks: Propaneproduction from natural gascontinues to grow, whichmight make one believe buildsthis year are stronger thanever, but that is not the case.Currently, propane stocks arebelow the five-year average,and it is unlikely that propane

prices will fall without a sizableincrease in inventory.

Crude oil: While crude oilprices remain the biggest fac-tor in propane prices, propanehas not followed crude priceslower. In fact, due to invento-ry concerns, propane valueshave remained fairly constant.World news events are bullishfor crude oil prices, so we aremore likely to see a rebound incrude prices somewhere downthe road.

Natural gas shale plays:Natural gas produced fromshale continues to grow withinthe United States. Along withthe natural gas, liquids such asethane, propane, and butaneare produced. However, addi-

tional propane productionfrom these shale plays hasbeen more than offset byexports and petrochemicaldemand. The Bakken produc-tion, which will feed into theMidwest, is expected to beexpanded before winter, but isunlikely to help much withsummer builds.

Demand: Later-than-normal corn planting thisspring, coupled with cooland wet conditions, have theMidwest grain-drying picturelooking more like 2009 than2010. Prudent expectationswould suggest grain-dryingdemand to be higher thanlast year, but not likely toreach 2009 levels. Currently,

the National Weather Servicesuggests more normal tem-peratures for the remainderof the year.

Without propane invento-ries building this summer, it isunlikely that prices will retreatfrom current levels. Strongcrude oil prices likely willmean stronger propane pricesas our demand seasonapproaches. Take time to visityour local FS member cooper-ative for contracting and even-payment programs.

Randy Miller is GROW-MARK’s director of propane oper-ations. His e-mail address isrmiller@growmark.com.

Randy Miller

Analyst: Strong cattle prices don’t guarantee profit for producersBY DANIEL GRANTFarmWeek

Cattle prices likely willremain strong for the foresee-able future due in part toshrinking beef supplies andstrong world demand.

Mike Murphy, market ana-lyst with CattleFax, at therecent Illinois Beef Associa-tion (IBA) summer conferencein Macomb projected fed steer

prices the rest of summercould trade in a range of $106to $112 per hundredweightand possibly move up to themid- to upper teens by fall.

Prices this past springreached a record $125 com-pared to the average tradingrange from 2004 to 2010 of$80 to $100 per hundred-weight.

“We’re trading in a new andhigher range,” Murphy said.“And we’re not looking atmuch growth of the beef cowherd the next couple years”which should continue to sup-port prices.

But the bullish price out-

look doesn’t necessarily guar-antee success for beef produc-ers. Murphy predicted cornprices will continue to bestrong, due in part to tight

supplies, andforage costscould increasedue to a lackof productionin thedrought-rav-aged southernU.S.

“We couldstart to see forage costs go upas we ship more (hay) from thenorth to the south,” Murphytold IBA members. “Eventhough things may look goodin your backyard right now,these types of things can influ-ence us.”

Higher feed and productioncosts could leave beef produc-ers in a predicament in whichthey’re scratching to turn aprofit despite historically highcattle prices.

“We’re very bullish the mar-ket because of the supply situ-ation,” Murphy said. “But thatdoesn’t mean we’re bullishmargins.”

Jeff Beasley, IBA presidentand a beef producer from Cre-al Springs, said some producerswho buy feeder cattle at cur-rent prices could face losses.

“We’ve held feed prices incheck (so far this year) butwe’re running out of cheaper-priced corn,” Beasley said.“We’re going from positivemargins maybe even to red.”

Cattle prices, however, areexpected to remain at histori-cally high levels due to ashrinking supply of beef andstrong world demand. The sizeof the beef cow herd since1996 has declined by 12 per-cent nationwide and by 23 per-cent in Illinois, according toMurphy.

And the herd is getting

even smaller as there is “majorliquidation” of herds takingplace in the South due todrought.

“It’s a challenge to stabilizethe herd when one of thebiggest regions (for beef pro-duction) is in severedrought,” said Murphy, whonoted one-sixth of thenation’s 30 million beef cowsare in Texas.

Meanwhile, demand for U.S.beef in other countries has siz-zled so far this year as exportsare up 31 percent.

“Our (future) growth is notdomestic as long as the trend(of cheaper-priced chickencompared to beef) holds,”Murphy said. “Our growth isglobal.”

The analyst cautioned, how-ever, that as U.S. beef pricesbecome more reliant onexports, the markets likely willbe more volatile.

He advised producers toknow their breakeven cost ofproduction and focus on riskmanagement strategies to sur-vive and even thrive in the

FarmWeekNow.com

Learn more about the cattle mar-ket outlook from CattleFax atFarmWeekNow.com.

Mike Murphy

Dairy month sees price spikeThe Class III price for milk adjusted to 3.5 percent butterfat

for the month of June was $19.11 per hundredweight. This is a$2.59 per hundredweight increase from the previous month.

The higher prices were a result of hot, humid weather curtail-ing milk production.

The continued rainy weather has made hay-making a realchore, and the lower-quality forage is taking the edge off of pro-duction.

Only in March 2011 have producers seen prices this high sinceJune 2008.

PROFITABILITY

AgriVisor Hotline Number

309-557-2274

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Policies issued by COUNTRYMutual Insurance Company®,

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AgriVisor LLC is not liable for any damageswhich anyone may sustain by reason of inac-curacy or inadequacy of information providedherein, any error of judgment involving anyprojections, recommendations, or advice orany other act of omission.

CASH STRATEGISTCorn Strategy

ü2010 crop: If you stillhave old crop, lock up thebasis now. Use a rally to $6.20on December to finish pricing.

ü2011 crop: The collapseconfirmed a major top hasbeen seen. December shoulddrop to $5.50 this summer,unless weather dictates other-wise. And there’s a chance itwill drop lower this fall unlessyields prove disappointing.Use a rebound to $6.15 forcatch-up sales. We might evenrecommend adding a smallsale; check the Hotline fre-quently.

vFundamentals: TheUSDA June acreage and grainstocks numbers were a shockto the industry. Doubt aboutharvested acreage will remainuntil the USDA August cropreport is released. The June 1stocks were 360 millionbushels more than the tradeexpected. That’s the equiva-lent of adding 2.2 millionacres to the new crop at atrend yield. Even with areduction in harvestedacreage, the trade already ispainting a more comfortablesupply scenario.

Soybean Strategyü2010 crop: The larger

June 1 stocks put the burdenof seeing higher prices on thenew crop. With the end ofthe crop year approaching, userallies to $13.30 on Augustfutures to complete sales.

ü2011 crop: Smalleracreage keeps production riskin the picture, but unlessthere’s an extended weatherproblem, prices will struggleto maintain gains. Use ralliesto $13.30 on Novemberfutures to make catch-up sales.

vFundamentals: Thetrade already is gearing up forharvested acreage to declinewith the August crop report.However, losses in the west-ern/northern parts of theCorn Belt could be offset bymore double-crop plantings.Good weather and trendyields still leave the U.S. withadequate supplies. Andthere’s already talk about larg-er plantings in Brazil againthis year. Export demand ispicking up a little, but it start-

ed to become brisk at this timelast year. Processing marginsremain dismal.

Wheat Strategyü2011 crop: Wheat prices

plummeted on a bearishUSDA acreage report andspillover pressure from corn.The Chicago September con-tract traded below $6 support,opening the door for a test ofthe $5.92 low. Once this liq-uidation ends, there should bea rebound. Plan to increasesales up to 65 percent on thenext major rally. We preferhedge-to-arrive contracts forwinter delivery if you have

the capability to store wheatbecause the large carry.

vFundamentals: USDApegged spring wheat plantingsat 13.6 million acres, 250,000more than expected. Springwheat planting conditionshave been less than desirablebecause of extreme moisturein the Northern Plains. Pricesare feeling some pressurefrom the rapid harvestprogress in the SouthernPlains and southern CornBelt. Yield reports continueto be widely variable, but wegenerally hear of more goodones than poor ones.

plantings dropped 600,000. In North Dakota alone,

plantings of all crops dropped1.6 million acres. Crop plant-ings alone are off nearly 4 mil-lion from their 2008 high. Theyare about 1 million below whatone might call a long-term base.

South Dakota plantings areexpected to rise a half millionacres this year, but will still be1 million below the 2008 peak.

Amid this, USDA alreadyhas indicated it will resurveyfour states in the NorthernPlains — the Dakotas, Min-nesota, and Montana. Resultswill be released on the Augustcrop report.

We expect to see harvestedacreage numbers declinebecause of the flooding alongthe Missouri River. But as wehave indicated before, the bestcurrent estimates still are some-what less than a half millioneach for corn and soybeans.There could be some additionaladjustments because of flood-ing in the Midsouth, but we seethose as being limited.

There’s still a possibilitydouble-crop soybean plantingscould increase somewhat con-sidering recent rains improvedmoisture conditions in theMidsouth/southern Corn Belt.But those are unlikely to showuntil the October revisionsUSDA makes using FarmService Agency data.

Adjustments will be made,but the acreages still will belarger than assumed before theJune 30 report.

Total crop plantings in lastweek’s USDA report exceededeveryone’s expectations just likein 2008. This year’s numbers mayhave been more of a surprisegiven the flooding issues we’vehad in the U.S. and the extremedelays in the eastern Corn Belt,and the Northern Plains.

But it always pays to put thesituation in a longer-term per-spective. Total plantings still fellfar short of 2008’s plantings. Inprimary corn states, only 283.7million acres were planted to allcrops, well short of the 290.3million planted in 2008.

Even adding in the land in theConservation Reserve Program(CRP), you can see total acreageplanted to all crops in primarycorn states is below what wasplanted in 2008. Since 2008,another 2.5 million acres havecome out of the CRP program.

Clearly, even though plant-ing issues were extensive,acreage being cropped is stillwell short of what might havebeen cropped had plantingweather been good.

You can see from the accom-panying graphic the biggestchange has been in the westernCorn Belt, including the Dako-tas. Plantings and CRP land inthat area dropped a half millionacres from last year, while

Cents per bu.

Acreage larger than expected

Page 11 Monday, July 4, 2011 FarmWeek

pERspEcTIvEs

FarmWeek Page 12 Monday, July 4, 2011

Recently a delegation of directors, chief executiveofficers, and staff from Illinois electric cooperativesmade a trek to Washington, D.C.

As part of that delegation, it gave me pause tothink of the many times I’ve been there and the ben-efits from each trip.

My initial voyage was in 1972 when my sister was aforeign exchange student. We drove her to New YorkCity to the airport, but before we sent her on her way,our family toured the U.S. Capitol.

Since the mid-1980s, I’ve been going to Washing-ton, D.C., two or three times a year. As a youngfarmer, I went as an Illinois Farm Bureau leader.

Later, as a state legislator, I went to meet withmembers of Congress on issues related to Illinois.

In the last five years, I’ve been going as staff ofthe Association of Illinois Electric Cooperatives todiscuss cooperative issues.

No matter how many times I’ve gone, I’ve flowninto Reagan National Airport and gazed down uponthe U.S. Capitol and the Washington, Jefferson, and

Lincoln monuments and realizedjust how special that city really is.

As a representative for electricco-op members, the Illinois delega-tion was a part of a national legisla-tive conference organized by theNational Rural Electric CooperativeAssociation (NRECA).

Joining us were representativesfrom 42 other states for a total of3,000 people converging on Wash-ington to talk about rural electriccooperative issues.

Highlights this year included meeting with 12members of Congress to express our concerns. Wealso met with the staff members who oversee energyissues in nine other Illinois congressional offices.

There are several key legislative issues, includingthe Rural Utility Service (RUS) loan program thatprovides low-interest financing to cooperatives toimprove their services for members. The loan levelhas been at $6 billion for a very long time. Our focuswas to ask Congress to maintain that funding level.

Again this year, one of the biggest concerns onCapitol Hill is the deficit and whether to raise thedebt ceiling. Anything that puts pressure on the fed-eral budget is scrutinized closely. One of those tar-geted is the RUS loan program.

Every year — literally since the Nixon administra-tion — there is pressure to cut or eliminate the pro-gram’s funding. That requires us to be persistent andmake a very strong case for its benefits to our mem-bers.

These low-interest rates allow our cooperatives to

build electric linesand infrastructuremore economically.With those rates, wedon’t have to raiseelectric bills as muchand or as oftenbecause of favorablefinancing.

We go to Wash-ington, D.C., toremind Congressthat the RUS loanprogram — becauseit’s a loan — actuallyreturns interest tothe government. Weare not coming tothem asking for ahandout. We are ask-ing Congress to con-tinue to fund a pro-gram that actuallyearns a $100 millionsurplus. That alwaysgets a smile or thenod of a head andbi-partisan support.

The other bigissue this year is coalcombustion residu-als, commonlyknown as coal ash.We delivered a mes-sage in Washingtonto help members ofCongress under-stand its benefits.

Southern Illinois Power Cooperative (SIPC), ageneration and transmission cooperative on Lake ofEgypt in Marion, has installed $15 million of equip-ment, which allows it to recycle this ash. Instead of sending the ash to the landfills, we areable to convert that into a recyclable product, such asroof shingle sand, sand-blasting abrasive, concretemanufacturing, fertilizers, and a number of otherproducts.

In our case, SIPC is recycling a large percent ofthat coal ash. In essence, if the Environmental Pro-tection Agency (EPA) would determine that coal ashis a hazardous material and couldn’t be recycled, theash would have to be handled in a hazardous fashion,increasing SIPC’s cost of disposal by $11 million.That is 25 percent of its fuel bill.

Our argument to elected officials is that there are

27 state EPAs, including the Illinois EPA, that havedetermined that coal ash is not a hazardous material.There is a beneficial reuse.

The argument to recycle coal ash is supported andreceived well and we are asking our congressionalmembers to co-sponsor HR 1391.

The argument makes sense. Why would we put ashin landfills when it can go into building materials?The message is fairly clear, it’s just important thatmembers of Congress hear this side of the story.

And that’s why we keep going to Washington. It’sso important for us to be there, championing ourcause.

Duane Noland, president and chief executive officer of theAssociation of Illinois Cooperatives, is a former state senatorand active on his family farm near Blue Mound. He is a mem-ber of Shelby Electric Cooperative.

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Eminent domain billsconcern FutureGen foesEditor:

While continuing to opposethe FutureGen 2 carbon cap-ture and sequestrian (CCS)project in northeast MorganCounty where we farm, we’dlike to share our concerns onrecent legislation favorable forFutureGen and other compa-nies planning to implementthis technology.

There are three CO2pipeline eminent domain billsthat have been passed by theIllinois legislature but have notyet been signed by GovernorQuinn.

Senate Bill 1821 sponsored

by Sen. John Sullivan is themost broad-based, while SB1533 and SB 2169 are site-spe-cific for the Lecadia powerplant in Chicago and the Pow-er Holdings pipeline in South-ern Illinois, respectively.

The bill posing the mostwidespread use of eminentdomain was House Bill 680which failed in the spring ses-sion but likely will resurfacethis summer. It provides emi-nent domain for entire subsur-face saline geologic formationslike the Mount Simon sand-stone formation underlyingmuch of Illinois and containsthe spore space preferred byFutureGen 2 for CO2 storage.

Huge tracts of farmland willbe impacted under thisbill. Illinois legislators aremoving way too fast by grant -ing broad-based powers toimplement CCS technologywhich pumps liquid CO2 deepunderground at very high pres-sures over long periods oftime without considering thelong-term environmental risksinvolved. We are simply trad-ing an environmental riskabove ground for perhaps agreater risk below the mostproductive farmland in theworld.

Illinois coal companieswould profit immensely by theadoption of CCS technology

as it requires much more coalto produce the same amountof energy. Accelerated use oftechniques like long wall coalmining would be devastating toIllinois farms.

We urge all Illinois FarmBureau members to contact

your legislators and GovernorQuinn immediately to opposelegislation favorable to compa-nies like FutureGen 2 planningon using CCS technology.DAVID, ANDY DAVENPORT,Cass-Morgan County FarmBureau members

DUANENOLAND

Delegation delivers supportfor cooperatives’ issues