farmweek november 7 2011

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Periodicals: Time Valued Monday, November 7, 2011 Two sections Volume 39, No. 45 FarmWeek on the web: FarmWeekNow.com Illinois Farm Bureau ® on the web: www.ilfb.org the tIme hAS cOme for farmers to open a dialogue with consumers, according to this year’s farm hostess. .................... 16 mOlIne-bASeD John Deere is preparing for its 175th anniver- sary in 2012 and is looking to expand its global reach. ...............11 FArmerS thIS mOnth at the Illinois Commodity Conference will be encouraged to focus on the future as 2011 comes to a close. ...3 ‘No question’ of safety net protection Vilsack: Farmers must reach the ‘98 percent’ BY MARTIN ROSS FarmWeek As Americans nationwide protest the lack of economic clout of the so-called “99 per- cent,” Ag Secretary Tom Vil- sack urged the 2 percent of Americans who produce food to “speak to the 98 percent of Americans who do not farm.” “This is more than a ‘farm’ bill,” Vilsack stressed last week as he led a farm bill panel at Peoria’s Bradley University. He acknowledged likely movement away from direct payments. Given the economic climate and high crop prices, the role of subsidies in assur- requires us to be more creative and innovative and figure out partnerships and ways in which we can enhance the benefits of conservation or tap resources for rural development or con- tinue working on ways to strengthen the safety net. “You can be pessimistic, moan and groan about how dif- ficult the challenge is and how cuts are hard to do. Or you can say, ‘This is an opportunity to reshape the programs to make them more efficient, more effective, make them fewer and simpler to administer, with more hands-on opportunities,’ and do it in a way that creates these new, exciting partnerships and connections and networks in rural America.” Vilsack recognizes the sales job ahead for farmers, espe- cially with lawmakers who “may have less of an interest in adequately supporting and framing (the farm bill)” if they don’t understand its “profound effect on the entire country.” Producers must pro- mote the consumer benefits of what he dubbed the “Farm, Jobs, Environment, and Food Bill,” he said. The bill “creates the plat- See Vilsack, page 4 ing food production is “very hard for many people to under- stand,” he maintained. However, “there’s no ques- tion there’s going to be a strong safety net in any legis- lation that’s passed by Con- gress, notwithstanding the budget challenges we face,” Vilsack said at a Peoria ag “symposium.” He sees a “con- tinued commitment to crop insurance,” with likely expan- sion of covered commodities. Noting risks to farmers from global events “that could significantly impact the price of their crops,” he supports a stronger “revenue protection” program that could be “better explainable to the other 98 per- cent than direct payments.” The secretary believes pro- gram priorities can be addressed despite a proposed $23 billion, 10-year cut in ag spending being considered by a 12-member congressional “super commit- tee” charged with identifying massive deficit savings. “It’s not going to be easy,” Vilsack told FarmWeek. “It THE END’S IN SIGHT State laying off 5 percent of IDOA workforce BY KAY SHIPMAN FarmWeek The Illinois Department of Agriculture (IDOA) faces “a significant loss” of 21 employees due to layoffs that took effect Nov. 1, said Jeff Squibb, IDOA spokesman. The 21 individuals repre- sent 5 percent of IDOA’s employees. “Agriculture is willing to do ees will continue to collect seed samples and follow up if there is any violation, Squibb explained. The layoffs “will create management challenges,” he said. “Our job now is to do the work required by statute with a smaller workforce. There has been no corre- sponding reduction in our statutory requirements,” Squibb said. “The challenge now is to meet those requirements with a reduced workforce,” Squibb added. its share in balancing the budget, but at the same time we want to make sure IDOA has the necessary resources to carry out the regulatory pro- grams it is responsible to over- see,” said Illinois Farm Bureau President Philip Nelson. In September, Gov. Pat Quinn outlined plans to lay off 1,900 state employees, including those at IDOA, and to close seven state facilities because the budget wasn’t large enough to fund state government. He had challenged law- makers to take action during the fall veto session, but that didn’t happen during the first part of the session. The affected IDOA employees are all four of the seed analysts in ag product inspections; two animal wel- fare investigators in the ani- mal health and welfare department; and three plant and pest specialists in envi- ronmental programs. The Illinois State Fair- grounds and the Du Quoin State Fairgrounds have lost four and three buildings and ground staff, respectively. The layoffs include three grain warehouse examiners, a weights and measures inspector, and a compliance officer in the meat and poul- try inspection division. The loss of all four seed analysts means IDOA will now have to contract with a private lab to provide seed analyses, but IDOA employ- FarmWeekNow.com Go to FarmWeekNow.com to listen to an RFD Radio inter- view with Secretary Vilsack. Pete Taylor, standing outside the tractor cab, waited last week for his truck to be loaded with corn in a field near Redmon in Edgar County. The land is farmed by Tony Kile and his wife, Brooke. The Kiles’ hired man, Justin Cary, is in the tractor cab. Yields on the farm this year are averaging 170-180 bushels per acre for corn and 50-60 bushels per acre for soybeans. About 130 acres of corn was yet to be harvested before the rains came last week. Statewide, corn was 89 percent completed and soy- beans 94 percent done as the week began. (Photo by Ken Kashian)

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Page 1: FarmWeek November 7 2011

Per

iod

ical

s: T

ime

Val

ued

Monday, November 7, 2011 Two sections Volume 39, No. 45

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

the tIme hAS cOme forfarmers to open a dialogue withconsumers, accord ing to th i syear’s farm hostess. ....................16

mOlIne-bASeD John Deereis preparing for its 175th anniver-sary in 2012 and is looking toexpand its global reach. ...............11

FArmerS thIS mOnth atthe Illinois Commodity Conferencewill be encouraged to focus on thefuture as 2011 comes to a close. ...3

‘No question’ of safety net protection

Vilsack: Farmers must reach the ‘98 percent’BY MARTIN ROSSFarmWeek

As Americans nationwideprotest the lack of economicclout of the so-called “99 per-cent,” Ag Secretary Tom Vil-sack urged the 2 percent ofAmericans who produce foodto “speak to the 98 percent ofAmericans who do not farm.”

“This is more than a ‘farm’bill,” Vilsack stressed last weekas he led a farm bill panel atPeoria’s Bradley University.

He acknowledged likelymovement away from directpayments. Given the economicclimate and high crop prices,the role of subsidies in assur-

requires us to be more creativeand innovative and figure outpartnerships and ways in whichwe can enhance the benefits ofconservation or tap resourcesfor rural development or con-tinue working on ways tostrengthen the safety net.

“You can be pessimistic,moan and groan about how dif-ficult the challenge is and howcuts are hard to do. Or you cansay, ‘This is an opportunity toreshape the programs to makethem more efficient, moreeffective, make them fewer andsimpler to administer, withmore hands-on opportunities,’and do it in a way that creates

these new, exciting partnershipsand connections and networksin rural America.”

Vilsack recognizes the salesjob ahead for farmers, espe-cially with lawmakers who“may have less of an interestin adequately supporting andframing (the farm bill)” ifthey don’t understand its“profound effect on the entirecountry.” Producers must pro-mote the consumer benefitsof what he dubbed the“Farm, Jobs, Environment,and Food Bill,” he said.

The bill “creates the plat-

See Vilsack, page 4

ing food production is “veryhard for many people to under-stand,” he maintained.

However, “there’s no ques-tion there’s going to be astrong safety net in any legis-lation that’s passed by Con-gress, notwithstanding thebudget challenges we face,”Vilsack said at a Peoria ag“symposium.” He sees a “con-tinued commitment to cropinsurance,” with likely expan-sion of covered commodities.

Noting risks to farmersfrom global events “that couldsignificantly impact the price oftheir crops,” he supports astronger “revenue protection”

program that could be “betterexplainable to the other 98 per-cent than direct payments.”

The secretary believes pro-gram priorities can be addresseddespite a proposed $23 billion,10-year cut in ag spending beingconsidered by a 12-membercongressional “super commit-tee” charged with identifyingmassive deficit savings.

“It’s not going to be easy,”Vilsack told FarmWeek. “It

THE END’S IN SIGHT

State laying off 5 percent of IDOA workforceBY KAY SHIPMANFarmWeek

The Illinois Department ofAgriculture (IDOA) faces “asignificant loss” of 21employees due to layoffs thattook effect Nov. 1, said JeffSquibb, IDOA spokesman.

The 21 individuals repre-sent 5 percent of IDOA’semployees.

“Agriculture is willing to do

ees will continue to collectseed samples and follow upif there is any violation,Squibb explained.

The layoffs “will createmanagement challenges,” hesaid.

“Our job now is to do thework required by statute

with a smaller workforce.There has been no corre-sponding reduction in ourstatutory requirements,”Squibb said.

“The challenge now is tomeet those requirementswith a reduced workforce,”Squibb added.

its share in balancing thebudget, but at the same timewe want to make sure IDOAhas the necessary resources tocarry out the regulatory pro-grams it is responsible to over-see,” said Illinois Farm BureauPresident Philip Nelson.

In September, Gov. PatQuinn outlined plans to layoff 1,900 state employees,including those at IDOA,and to close seven statefacilities because the budgetwasn’t large enough to fundstate government.

He had challenged law-makers to take action duringthe fall veto session, but thatdidn’t happen during thefirst part of the session.

The affected IDOAemployees are all four of theseed analysts in ag productinspections; two animal wel-fare investigators in the ani-mal health and welfaredepartment; and three plantand pest specialists in envi-ronmental programs.

The Illinois State Fair-grounds and the Du QuoinState Fairgrounds have lostfour and three buildings andground staff, respectively.

The layoffs include threegrain warehouse examiners, a

weights and measuresinspector, and a complianceofficer in the meat and poul-try inspection division.

The loss of all four seedanalysts means IDOA willnow have to contract with aprivate lab to provide seedanalyses, but IDOA employ-

FarmWeekNow.comGo to FarmWeekNow.com tolisten to an RFD Radio inter-view with Secretary Vilsack.

Pete Taylor, standing outside the tractor cab, waited last week for his truck to be loaded with corn in afield near Redmon in Edgar County. The land is farmed by Tony Kile and his wife, Brooke. The Kiles’hired man, Justin Cary, is in the tractor cab. Yields on the farm this year are averaging 170-180bushels per acre for corn and 50-60 bushels per acre for soybeans. About 130 acres of corn was yetto be harvested before the rains came last week. Statewide, corn was 89 percent completed and soy-beans 94 percent done as the week began. (Photo by Ken Kashian)

Page 2: FarmWeek November 7 2011

USDA TURNS 150 — Ag Secretary Tom Vilsack lastweek kicked off the 150th anniversary celebration ofUSDA at the Old Illinois State Capitol in Springfield.

Springfield, of course, was the home of the 16th U.S.president, Abraham Lincoln, who in 1862 signed into lawan act of Congress that established USDA.

“Through our work on food, agriculture, economicdevelopment, science, natural resource conservation, anda host of issues, USDA still fulfills President Lincoln’svision as ‘The People’s Department,’ touching the lives ofevery American, every day,” Vilsack said.

V i l s a ck a t t h e e ve n t u nve i l e d a n e w we b s i t e{www.usda.gov/usda150} that outlines the department’shistory and Lincoln’s role in its creation.

DUST (RULE) BUSTERS? — A U.S. House Energyand Commerce subcommittee last week passed an amend-ed version of the proposed Farm Dust Regulation Pre-vention Act backed by the American Farm Bureau Feder-ation (AFBF). The bill now moves to the full committeefor consideration.

The measure, introduced by Reps. Kristi Noem (R-S.D.) and Leonard Boswell (D-Iowa), addresses the threatof increased federal regulation of dust by preventing theU.S. Environmental Protection Agency (EPA) fromimposing more stringent federal dust standards.

Last week’s amended measure would not exempt“coarse particulates” generated through combustion byindustrial facilities and power plants. It addresses the dif-ferences between farm/rural dust and higher-level partic-ulates that may impact more concentrated populations.

“We believe the committee improved the bill and madeit stronger, which improves its chances of passing,” saidAFBF clean air specialist Rick Krause.

For Ag Secretary Tom Vilsack’s views on the issue, seepage 4.

VILSACK ON IMMIGRATION — Speaking atPeoria’s Bradley University, Ag Secretary Tom Vilsack lastweek warned against election-season congressional “dem-agoguing” over immigration/border security issues, warn-ing “we have crops rotting in the field today” amid thetussle over a crucial ag labor pool. Congress has deferredag guest worker debate amid fears perpetuated by “peoplewho want to make us feel like we don’t want another sin-gle person coming into this country,” he said.

“I’m adopted: I started life in a Catholic orphanage,”Vilsack related. “I honestly do not know my nationality,my background. Every single person in this room whoknows (his) background probably can tell you the storyof the relative who first came to this country and wentthrough some tough, difficult hard times. They struggled.

“Before there’s an American dream, there’s always theAmerican struggle. It’s that struggle that creates the ener-gy and creativity, the innovation, the challenge that makesthis country so great.”

FarmWeek Page 2 Monday, November 7, 2011

(ISSN0197-6680)

Vol. 39 No. 45 November 7, 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.

POSTMASTER: Send change of address notices onForm 3579 to FarmWeek, P.O. Box 2901, Bloomington, IL61702-2901. Farm Bureau members should sendchange of addresses to their local county Farm Bureau.

© 2011 Illinois Agricultural Association

STAFFEditorDave McClelland ([email protected])

Legislative Affairs EditorKay Shipman ([email protected])

Agricultural Affairs EditorMartin Ross ([email protected])

Senior Commodities EditorDaniel Grant ([email protected])

Editorial AssistantLinda Goltz ([email protected])

Business Production ManagerBob Standard ([email protected])

Advertising Sales ManagerRichard Verdery ([email protected])

Classified sales coordinatorNan Fannin ([email protected])

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)

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

Quick TakesLegaL issues

Attorney general, state’s attorney suerailroad over Tiskilwa derailment cleanup

Illinois Attorney GeneralLisa Madigan and BureauCounty State’s AttorneyPatrick Herrmann last weeksued Iowa Interstate RailroadLtd. for alleged environmentalviolations stemming from anOct. 7 train derailment nearTiskilwa. Nine tank cars thatwere transporting ethanolcaught fire. At least three drinking waterwells are located near thederailment site in addition toPlow Hollow Creek and BigBureau Creek, which eventual-ly flow into the Illinois River.The lawsuit asks the court torequire a complete cleanup andto order Iowa Interstate Rail-road to pay all cleanup costs. “With an ethanol spill ofthis magnitude, we mustensure that the proper stepsare taken to clean up the areaand protect the public’s healthand safety during thatprocess,” Madigan said. Madigan and Herrmannalso requested and the court

agreed to an order ensuringIowa Interstate Railroad willwork with the state to thor-oughly investigate and cleanupany environmental damageswhile the lawsuit proceeds. Of the 26 derailed cars,about 10 tank cars each con-tained 30,000 gallons ofethanol. Although fire con-sumed much of the ethanol innine overturned cars, authori-ties believe an unknownquantity of it seeped into thesoil. The court order requiresIowa Interstate Railroad to: • Report the test results of

all samples of air, soil, ground-water, and surface water at andaround the site and all datarelated to modeling and hydro-geologic studies: • Survey private wells andcommunity water supplieswithin a one-mile radius of thederailment site. If tests showthat levels of some chemicalsexceed the legally allowed stan-dards, the railroad must pro-vide bottled water to affectedhomes and buildings; and • Submit biweekly andmonthly progress reports tothe Illinois EnvironmentalProtection Agency.

‘We must ensure that theproper steps are taken toclean up the area.’

— Lisa MadiganIllinois attorney general

Collapse of MF Global adds to market volatility;commodity markets endure a ‘tough week’BY DANIEL GRANTFarmWeek

The collapse of a major broker/clearingfirm, MF Global, last week sent shockwavesthrough the commodity markets and addedeven more uncertainty to extremely volatilemarkets.

New York-based MF Global, whichreportedly had $8 billion in accounts, lastweek filed for bankruptcy. It was the eighth-largest futures commission merchant in theU.S.

“It created quite a bit” of turmoil, JackScoville, futures market analyst and vice presi-dent of PriceFutures Groupin Chicago,toldFarmWeek.“MF Globalwas a majorclearing firm atthe ChicagoBoard ofTrade, Mercan-tile Exchange, and the New York MercantileExchange. A lot of locals (in Illinois) alsocleared through them.”

Most accounts associated with MF Global,reportedly about 150,000, were frozen on Hal-loween day.

“We haven’t done any business thisweek,” Scoville said Thursday. “The CMEGroup locked out (traders) from MF Glob-al.

“You could really tell the difference in flooractivity,” the analyst continued. “Overall, thesituation created quite a drop in volume (ofcommodity trades).”

Many accounts late last week were sched-uled to be released. Price Futures Groupswitched from MF Global to ADM for clearingservices.

But many in the trade still were concerned

at least some of the money may not bereturned.

Regulators investigating the situation report-ed MF Global may have misappropriated about$600 million in customer funds.

“At the end of the day, they’re going to haveto find the money for those accounts,” Scovillesaid.

Overall, Scoville believes the situation lastweek didn’t necessarily affect price action, butit did have an impact on liquidity, whichincreased volatility.

The fall of MF Global reportedly wastied to the Euro-zone debt crisis. The bro-

kerage firmwas left withno otheroption but tofile for bank-ruptcy aftertalks brokedown to sell avariety of itsassets to Inter-active Brokers

Group.“The Greek situation and Europe (debt cri-

sis) have been roiling the market, our owneconomy is far from rosy, and the weather allcombined to create extreme volatility in themarket,” Scoville said.

“Something like this meltdown certainlywon’t do anything to diminish that. It cer-tainly made it a tough week for the mar-kets.”

Jon Corzine, chairman of MF Global andformer U.S. senator from New Jersey and gov-ernor of that state, resigned on Friday.Corzine and MF Global as of Friday were notaccused of any wrongdoing.

But U.S. regulators are conducting abroad review of the company’s business asthey try to account for the missing customerfunds.

‘Overall, the situation created quite adrop in the volume (of commoditytrades).’

— Jack ScovilleVice president, Price Futures Group

Page 3: FarmWeek November 7 2011

GOvERNMENT

Page 3 Monday, November 7, 2011 FarmWeek

BY DANIEL GRANTFarmWeek

Many farmers in the Corn Belt probablyare in no hurry to see 2011 come to an end,at least from a financial standpoint.

USDA recently projected net farm incomethis year will reach a record level as cash receiptswere predicted to be up 19.4 percent for cropsand 15.8 percent for livestock compared tolast year.

But with many chal-lenges in the industry(input prices areexpected to set a newrecord this year whilecorn and soybeanprices recently plum-meted 20 percent),farmers this month at the Illinois Com-modity Conference will be encouraged tofocus on the future.

The annual event will be Nov. 22 at theDoubleTree Hotel and Conference Center inBloomington. Registration on the day of theconference will open at 7:30 a.m. and the pro-gram will conclude at 2:30 p.m.

The theme of the conference is “Gatewayto the Future.” It is sponsored by the IllinoisBeef, Corn Growers (ICGA), Milk Producers,Pork Producers, Soybean (ISA), and WheatAssociations.

“The Illinois Commodity Conference pro-vides a valuable opportunity for Illinois farm-ers to come together to discuss the issues thataffect us all,” said Jim Reed, ICGA president.

The scheduled speakers at the event are

Roger Cady,senior techni-cal consult-ant for Elan-co; Dan Hal-strom, seniorvice president of marketing and communica-tions at the U.S. Meat Export Federation; andDavid Zach, a futurist.

“Too often, we get caught up in our rou-tines and entrenched in old habits,”said Matt Hughes, ISA board chair-man. “This conference gives us theopportunity to reflect on thosethings and re-evaluate the way wedo business.”

Cady will discuss keys to ag sustain-ability while Halstrom will evaluate

how U.S. farmers can open the gate to new mar-kets.

U.S. beef, pork, and lamb exports this yearare on pace to set records, but there still arekey opportunities to increase sales and mar-ket share, according to Halstrom.

“We’re seeing most major export countriescontinue to grow and there is more optimismon the horizon,” Halstrom said in an onlineinterview posted at {www.cattlenetwork.com}.“But there still are opportunities out there,(particularly) on the access side.”

The fee for the conference, which includeslunch, is $65 through Nov. 14 and $90 thereafter.There is a discounted rate of $30 for students.

More information, including the completeagenda, is available online at {www.ilcommodi-tyconf.org} or by calling 309-557-3703.

FarmWeekNow.com

Check out the Illinois Commodi-t y C o n f e r e n c e w e b s i t e a tFarmWeekNow.com.

River stakeholders mulling funding optionsBY MARTIN ROSSFarmWeek

Soy industry leaders plan toreconvene with other Mississip-pi River stakeholders to deter-mine possible new steps towardfreeing dollars for much-need-ed lock upgrades.

Philip Bradshaw, former Unit-ed Soybean Board (USB) imme-diate past chairman, joined repre-sentatives of other soy groups ina meeting with Panama Canalofficials that led to an Octobergathering of ag, labor, barge, andother river interests in Quincy.

can Jobs Act proposal seeks anannual $400 million for water-ways improvements. But theadministration recommendsnew commercial user and per-lock passage fees beyond themarine fuel tax — a proposalthat the industry believes wouldboost shipping costs.

Illinois Farm Bureau trans-portation specialist Kevin Rundnoted one “big takeaway” fromOctober’s annual WaterwaysCouncil Inc. (WCI) WaterwaysSymposium in Pittsburgh.

“There’s a realization thatthere are serious funding prob-lems here, and it would take amiracle to shake money loosefrom Washington,” said Rund,

who attended the symposium. “We’ll need to look at sup-

plemental sources beyond fed-eral dollars if we’re going tomake immediate advances inlock funding.”

Rund noted the White Houseproposal includes none of theother important reforms theindustry has supported along-side a fuel tax hike, such as limitson project cost overruns aimedat preserving trust fund dollars.

Further, WCI disputes pro-posals that would impose feesmerely “on one beneficiary” ofthe river system (see accompa-nying details) and urges the 12-member congressional “supercommittee” to reject the plan.

During a regional economicdevelopment summit precedingthat meeting, Panama CanalAuthority Vice President Rodol-fo Sabonge stressed the impor-tance of Midwest infrastructureinvestment in efficiently movingU.S. exports through his soon-to-be-expanded canal. Sabongeargued “anything that facilitatesthe movement of grain willcontinue expanding the exportsof the U.S.”

An Informa Economicsstudy indicates a combination ofcanal expansion and Upper Mis-

sissippi improvements couldspur a doubling of grain vol-ume moving on the river.

“It could save about 35 centsa bushel (in shipping costs) forevery bushel of soybeans wesell,” Bradshaw, a Griggsvillefarmer, told FarmWeek. “It’snot a minor thing.”

But U.S. Army Corps ofEngineers Rock Island Districtcommander Col. Shawn McGin-ley warned of a federal fundingscenario that could result in lockservice being trimmed from 24hours a day to 16.

The national Soy Transporta-tion Coalition is finalizing astudy measuring the costs ofpotential lock breakdowns andclosings to growers.

River stakeholders thus areeyeing a follow-up meeting thismonth to discuss possible fund-ing options in the face of feder-al deficit reductions. Towardthat end, an industry consor-tium has supported boostingthe existing 20-cent-per-gallonfuel tax, which feeds the InlandWaterways Trust Fund.

The trust fund was designedto fund 50 percent of lock con-struction and major rehab proj-ects, but reserves have ebbed,delaying approval of federalcost-share dollars. A fiscally con-servative House has rejected thenotion of even voluntary taxincreases to replenish the fund.

The White House’s Ameri-

Winners and usersThe National Waterways Foundation (NWF) is promoting

University of Tennessee Center for Transportation Researchresearch outlining the benefits — and diverse beneficiaries —of the inland navigation system.

Among key points: • The inland waterways system provides thousands of “fami-

ly-wage” jobs in industries that help move some 624 milliontons of waterborne cargo annually.

• In 2006, estimated national shipper savings using bargerather than other modes was $7 billion for the entire inlandwaterways system. Savings are passed on to consumers, whopay less for electricity and other key commodities, the Ten-nessee study asserted.

• Dams and tributaries collect runoff and help maintain navi-gation pools, helping manage flood events.

• In 2009, more than 382,000 recreational vessels passedthrough navigation locks free of charge.

• The nation’s hydropower generation plants generate bil-lions of “green, sustainable” kilowatt hours annually, supportedby the navigation system, according to the NWF.

Future focus of conferenceUSDA last week designated 44 counties in Illinois as natural disaster areasdue to losses caused by drought and excessive heat that began July 1. Allqualified farm operators in designated areas, including 33 contiguous coun-ties, are eligible for low-interest emergency loans from the Farm ServiceAgency. The most recent disaster declarations are separate from the Septem-ber announcement, when 46 counties (along with 27 contiguous counties) inthe state were declared natural disaster areas because of losses caused byexcessive rain, flooding, and flash flooding that occurred April 1 through July31. Some counties were designated disaster areas in both declarations.

CATCHING SOME RAYS

Open house attendees at an Organic Valley farm in Scales Mound (JoDaviess County) get a firsthand look and description of a recently in-stalled 10-kilowatt solar electric system that powers the 45-cow dairyfarm, owned and operated by Jeff and Sheila Koester. The Koesters’new solar electric system was made possible through Organic Valley’sOn-Farm Sustainability Program. Organic Valley reportedly is thelargest co-op of organic farmers in the country. The Koesters have beenmembers of Organic Valley since 2005. (Photo by Ceara Westaby)

Page 4: FarmWeek November 7 2011

U.S. Secretary of Agriculture Tom Vilsack listens as Bradley University engineering student Andrew Aubry ofArlington Heights relates research on the energy cycle of soybean and related biofuels production. Vilsacklast week visited with students, faculty, Peoria-area business leaders, and producers and led a panel discus-sion of farm bill priorities and concerns. (Photo by Martin Ross)

government

FarmWeek Page 4 Monday, November 7, 2011

Continued from page 1form for production of agricultural products,” assuring U.S.food security — “an enormous advantage from a national securi-ty perspective.” Vilsack deems the bill a “job creator,” citingpotential for employment in renewable energy, “biobased” man-ufacturing, and engineering and other fields that fuel ag efficien-cy.

“Ever-increasing” ag energy production reduces reliance onimported oil and offers consumers “choice at the pump,” to datesaving drivers 90 cents to $1-plus per gallon, he said.

Conservation benefits are “a little easier to explain” to the pub-lic, Vilsack argued. Direct payments have provided a major impetusfor farmer conservation compliance, but he suggested compliancerequirements could be tied to future crop insurance coverage orrevised revenue protections.

Conservation comes in for significant cuts under the House-Senate ag spending plan. Vilsack believes conservation programs,as well as USDA’s 43 rural development initiatives, can be con-solidated but made more “flexible.”

He envisions a results-oriented, “holistic” conservationapproach focusing on watershed-based gains and dispatchingNatural Resources Conservation Service personnel to “spendmore time with farmers in the field.”

Conservation “can create economic activity,” from use of localcontractors to build field structures to new “credit” markets thatallow growers to profit from measures that help nearby utilities andindustries meet water quality goals, Vilsack said.

Similarly, he advocates regional strategies to pool rural devel-opment resources and bolster local/regional food systems, ag-based outdoor recreation, and biobased production.

Renewable energy — as promoted under the farm bill’s energytitle — offers a particularly promising “opportunity to speak to theother 98 percent,” he argued.

Vilsack chatted last week with Bradley engineering studentsstudying farm energy use, bioenergy/biofuels production, andwind energy. He emphasized the importance of strengtheningcredit-finance options for young and beginning farmers, andnoted 1 of every 12 U.S. jobs today is “directly related to agri-culture.”

“If young people are interested in jobs, they ought to be inter-ested in a healthy ag economy,” Vilsack thus advised.

Vilsack

Vilsack defends Jackson, seeks ‘regulatory certainty’BY MARTIN ROSSFarmWeek

Last week, Ag SecretaryTom Vilsack stressed the needto assure “regulatory certain-ty” for farmers, arguing “wehave the proof now” todemonstrate the positiveimpact of ag conservationmeasures on the MississippiBasin watershed.

He nonetheless defendedU.S. Environmental Protec-tion Agency (EPA) Admin-istrator Lisa Jackson’sassurances her agencywould not seek more strin-gent controls on “farmdust” — airborne coarseparticulates.

Vilsack deemed continuedconcerns among farmers and inCongress “particularly frustrat-ing,” given Jackson’s “veryspecifically worded letter”rejecting the idea of new dustrules.

“We’ve been trying toexplain for months that thereis no dust rule,” he insisted ata Bradley University sympo-sium.

Vilsack acknowledgedconcerns about potential reg-ulatory overreach voiced by

Vilsack said USDA now isable to “quantify” the cumula-tive impact of voluntary con-servation projects and pro-grams on Midwest water quali-ty.

“To the extent that we canquantify and measure resultsof conservation, I think wecan then get to the pointwhere we can offer regulatorycertainty,” he said.

state lawmakers and othersparticipating in the sympo-sium.

Farmers “need to know therules aren’t going to change,they need to know what therules are, and they need toknow that if they make aninvestment, a year from nowit’s not going to be insuffi-cient,” he said.

Vilsack noted ongoingUSDA efforts to help guideU.S. regulation of producersand rural communities. EPA’sag representative consults withUSDA two to three times aweek on proposed rules orregulations under considera-tion by the environmentalagency.

USDA also meets regularlywith representatives of aggroups to update farmers onand field concerns about reg-ulatory efforts. At the sametime, USDA has helped Jack-son “get a bird’s eye view ofwhat goes on at the farm,”via joint rural tours in Iowa,Florida, and California, hesaid.

Recent EPA water quality“guidance” has heightenedconcerns about potential regu-

lation of farm nutrient useand “loading” within the Mis-sissippi River watershed, simi-lar to measures being imple-mented in the eastern Chesa-peake Bay.

Page 5: FarmWeek November 7 2011

regulations

Page 5 Monday, November 7, 2011 FarmWeek

Antibiotic restrictions could have unintended consequencesLivestock producers and

veterinarians aren’t the onlypeople who could be affectedby potential restrictions onantibiotics used in animal agri-culture.

Consumers also couldexperience some “unintendedconsequences” if the Foodand Drug Administration(FDA) proposal to limit theuse of antibiotics, in anattempt to slow antimicrobialresistance in human medicine,goes into effect.

That was the message vet-erinary health professionalsdelivered recently at theantibiotic use in food animalssymposium hosted in Chicagoby the National Institute forAnimal Agriculture.

Scott Brown, senior direc-tor of metabolism and safetyfor Pfizer Animal Health, saidrestrictions on the use of pre-viously approved antibiotics inanimal ag could result in some

“The pipeline is slowingfor antimicrobials in humansand animals,” Brown said.“The most current veterinaryantibiotics were discovered inthe 1980s.”

The potential loss of suchtools, increased animal healthproblems, and higher produc-tion and food costs eventuallycould have a major impact onthe human population.

“It’s important we protectall the technology we have inag,” said Mike Lormore, direc-tor of dairy veterinary opera-

tions for Pfizer AnimalHealth. “If we didn’t havetechnology of the past 60years, we currently would beable to feed only about 4 bil-lion people.”

The world population lastmonth surpassed the 7 billionmark. It is projected to reach 9billon by 2050.

“In 50 years, the populationwill need 100 percent morefood,” Brown added. “Seventypercent of that has to comefrom technology.” — DanielGrant

major animal diseases leftuntreated, an increase in ani-mal mortality, and the devel-opment of a widespread blackmarket. It also could jeopard-ize food safety and humanhealth, he said.

“Do we think about theunintended consequenceswhen we take action?” Brownasked.

If antibiotic use is restrict-ed to a small class of products,the situation actually couldspeed up the rate of resist-ance, he said.

“What do you think thatwill do to resistance” if thereis intense use of a small classof antibiotics in animal ag,Brown noted.

Meanwhile, the generaltrend for cases of foodborneillness in the U.S. is down,although widespread mediareports of outbreaks maymake it seem as though casesare on the rise, according to

Tom Shryock, senior researchadviser of microbiology atElanco Animal Health.

“Antibiotics are one of thetools that enable more healthyanimals to enter the foodchain,” Shryock said.

Brown also is concernedlimiting the use of antibioticscould restrict research anddevelopment of new products.It currently takes about 10years and $100 million tomove a veterinary drug fromthe discovery phase to themarketplace, he claimed.

FDA wants to limit use of antibiotics in animal agBY DANIEL GRANTFarmWeek

There may be no definitiveproof antibiotic use in live-stock production is accelerat-ing antimicrobial resistanceissues in human medicine.

But the Food and DrugAdministration (FDA)believes there is enough riskof such a scenario to warrantaction, according to WilliamFlynn, deputy director for sci-ence policy at FDA’s Centerfor Veterinary Medicine.

“We believe some of thescience out there now sug-gests some action is warrantedto address this issue and tomitigate risk,” Flynn saidrecently at the antibiotic usein food animals symposiumhosted in Rosemont by the

ban drugs, but to mitigaterisks,” Flynn said. “Not allantimicrobials will be affect-ed” by proposed regulations,he said.

Flynn did not provide aspecific timeline for the phase-out of certain antibiotics. Buthe noted those in animal agri-culture will be given sufficienttime to make any necessary

transitions in their animalhealth programs.

“We recognize the need tophase in changes over time,”he said. “I envision this occur-ring over a number of years.”

Concerns about limitingantibiotics use in animal agand increasing oversight fromcurrent levels include animalhealth, food safety, a lack ofenough large-animal veterinar-ians, and higher productioncosts for producers.

“We’re seeking input onhow to make the process moreefficient,” Flynn added.

Countries that banned orregulated antibiotics in animalag include Denmark (1998),Switzerland (1999), the Euro-pean Union (2006), and SouthKorea this year.

National Institute for AnimalAgriculture.

FDA last year releasedGuidance 209, which rec-ommends the judicious useof medically importantantimicrobial drugs. Guid-ance 209 recommendationsand reactions to the propos-als can be viewed at theAmerican Veterinary Med-ical Association’s website{www.avma.org}.

The FDA recommenda-tions call for antibiotics usedfor “production purposes” tobe phased out and for moreveterinary oversight of antibi-otics used in animal agricul-ture, Flynn said.

“Using drugs judiciouslycan help curb resistance,” hesaid.

FDA, therefore, plans tolimit the use of drugs in ani-mal ag that are consideredmedically important tohumans.

Flynn assured veterinariansand other animal health pro-fessionals that many antibi-otics still will be available forlivestock production.

“Our objective is not to

‘We believe some of the science outthere now suggests some action iswarranted to address this issue and tomitigate risk.’

— William FlynnFDA’s Center for Veterinary Medicine

Page 6: FarmWeek November 7 2011

Bernie Walsh, Durand, Winnebago County: Corn harvestis still under way here inWinnebago County. We had arain delay with anywhere from0.8 to 1.5 inches of rain onWednesday night and Thursdaymorning. Hopefully, we will nothave too many more rain delaysbecause there is approximately

30 to 40 percent of the corn left to harvest.The moisture levels are in the mid- to upperteens, and the yields have continued toimpress most of us. The biggest problemsthis year have been the downed corn fromthe wind storms in July and the late-seasonear droppage. There has been a lot of falltillage and fertilizer application when theweather permitted. I believe the conclusionfor this year will be that it has been anothergood year with above-average yields andhigh commodity prices to help pay for thehigher-priced inputs. I hope everyone enjoyedreading the Cropwatchers feature this year,because I have enjoyed writing for it, and Ilook forward to seeing you back here againnext year.

Pete Tekampe, Grayslake, Lake County: A great week ofharvest in Lake County. Beansare above 99 percent cut andyields are a little above average.Corn is about half picked withyields a little above average,which is good considering theshoulder-high corn in Augustbecame a little shorter than knee-

high from wind damage. We have a lot to bethankful for this season. The yields that noone expected, an early and safe harvest, andabove all a good price for our commodities.So, let’s be thankful for this season and havea safe and happy holidays.

Leroy Getz, Savanna, Carroll County: Rain on Wednesdaynight amounted to 1.3 inches.That gives us a total since April 1of 36.9 inches. Corn yields havebeen very variable this year fromzero on flooded-out, storm-dam-aged areas to as high as 240bushels per acre. There still aremany acres of corn yet to be com-

bined. Soybean yields have been very good.Again, there were some very low yields in theflooded areas to as high as 80 bushels peracre on others. Grain prices have held veryhigh, but now cash rents for next year is goingthrough the roof. Even though we had manywarm summer days, our growing degreeunits totaled 3,032, which was about 300units behind 2010. Have a good winter and asafe harvest finish, and we hope to see younext year.

Larry Hummel, Dixon, Lee County: As we wrap upanother year of Cropwatchers, Ialways get a little jealous of theCropwatchers from the centralto southern part of the state.Quite often, they have complet-ed harvest a week or two earlierand talking about wrapping upfall tillage. Here in Northern

Illinois, we are still in the thick of thingswith 25 percent of the corn left to harvest.Fortunately, for those of us in NorthernIllinois, we didn’t have the dry summer thatplagued other parts of the state. Too manyhot days and strong winds were the limitingfactors in corn — in some cases droppingyields 10 percent. Soybeans on the otherhand, evidently loved the heat and bravedthe winds to produce a crop well aboveaverage.

Joe Zumwalt, Warsaw, Hancock County: 2011 certainlyhas gone by in a flash. While thishas been a difficult crop year inWestern Illinois, I believe wewere lucky to harvest the crop wedid. Yields varied dramaticallyand for a wide variety of reasons.Some wheat has been sown inthe area, but I don’t believe as

many acres were planted as usual. Harvestand most tillage are wrapping up, leavingmany with only fall fertilizer to apply or cattleto work. Amazingly, it still knows how to rainin Western Illinois. We received 2 to 3 incheslast week. While 2011 proved to be quite anunpredictable year, I am anxiously and opti-mistically awaiting the 2012 growing season.Thank you for following us this year. I hopethat we all have a safe, happy, and blessedholiday season. And I’ll see you back here in2012.

Ryan Frieders, Waterman, DeKalb County: Harvest at ourfarm is almost complete. Cornmoisture is between 16-18 per-cent. We received a half-inch ofrain on Wednesday night andThursday. Fall tillage is beingdone. Many neighbors already areapplying anhydrous for next year’scrop. It is hard to believe 2011 is

almost over and we are planning for 2012. Ithas been an interesting year, but I can’t waitto see what next year brings. Work safely.

Ken Reinhardt, Seaton, Mercer County: I had an inch anda quarter of rain Thursday. Thiswas the biggest amount inmonths. Many producers havefinished with harvest, but thereare a few scattered cornfieldsleft to go. Corn yields were allover the place. Corn-on-cornremains a challenge with variety

selection making the biggest difference thisyear. The early maturities missed the laterain and really suffered. A farmer below thebluff said his heavy ground drowned out inJune and his light soils burned up in Augustmaking for a lousy year. I downloaded videofrom my phone to YouTube channelKenReinhardtFarms to recap the season.

Ron Moore, Roseville, Warren County: We received 1.4inches of rain last week.Hopefully, that will just be the startof more moisture for this fall andwinter. We are very dry in thisarea and will need ample rainfalland snow to recharge our soilsbefore next year’s growing sea-son. Harvest is nearing the end in

this area with just a few fields left to combine.This area has been fortunate to have goodyields again this year. Fertilizer applicationand some tillage have been going on. Pleaseenjoy the holiday season and take the time tovisit with friends and family.

Tim Green, Wyoming, Stark County: Harvest in StarkCounty is pretty well wrapped up.Tillage is starting, and a little bitof anhydrous is being applied.We had a nice inch to inch and aquarter of rain last week. It wasgreatly, greatly appreciated andneeded. We were really, reallydry. We were drier this year than

we were a year ago. The soybean crop was alittle bit above the average. The corn cropwas probably right at the average to a little bitabove average. I learned a lot this year. Onething about farming, I’m pretty sure thingsnext year will be different, so we will start allover again. Have a nice holiday season.

Mark Kerber, Chatsworth, Livingston County: As theseason winds down, so doesthe stress level for many.Harvest is over and tillage isalmost complete. Lime and fer-tilizer are being applied at arapid rate. Now it is time to getsome tiling and conservationprojects done. The box scraper

is a handy tool for these projects in the fall.If you didn’t like this year, there is alwaysnext year, and it is time to start planning forit. Order your seed early and often as seedwill be in short supply industrywide. Enjoythe winter and we will see you at the farmshows. Markets are steady, waiting for theNovember crop report. Corn exports arereally low as other countries are rampingup production. Will we see $7 corn again orwill $5 come quicker?

Ron Haase, Gilman, Iroquois County: We had a goodweek for harvesting. On Oct. 30we lost a couple hours to rain,and we lost all of Thursday due torain. Each time we received closeto 0.1 of an inch. Ninety-five per-cent or more of the crops are out.We have 375 acres left to har-vest. The last fields we have been

in have been our better yields. One thing thatseems to be consistent is that the refugecorn is yielding much less. In general, it hasbeen 15 to 30 bushels per acre lower in yieldfor us. Overall, our farm yield average wouldrank third over the past 10 years. Only 2009and 2004 were better in yield. The local clos-ing bids for Nov. 3 were $6.51 for nearby corn(2.5 cents below CBOT), $5.72 for fall 2012corn, $12.03 for nearby soybeans, and$11.95 for fall 2012 soybeans. Basis levelscontinue to show improvement.

Brian Schaumburg, Chenoa, McLean County: Almostready to put this season to bedwith some tillage to do and a lotof NH3 and lime to be applied.Rainfall of 0.75 to 2 inchesbrought work to a halt, but weneed to recharge dry soils fornext year. 2011 has been arollercoaster ride of emotions

and expectations. Now that it is over, it turnsout to be about average. Almost time to startmy winter job on the hard courts (as a refer-ee). Corn, $6.51; $6.56, January; $5.71, fall2012; soybeans, $11.97; $12.04, January;$11.97, fall 2012; wheat, $6.29.

Steve Ayers, Champaign, Champaign County: Combinesand tractors rolled last week untila nice recharge rain startedfalling Wednesday night. ByThursday morning we had 0.6 ofan inch of rain and rain continuedthrough Thursday so our totalFriday morning was 1.22 inches.As of Oct. 31, USDA had our dis-

trict at 91 percent corn harvested and 98 per-cent soybeans harvested. Looks like morerain today through Wednesday with tempera-tures from 40 to 60 degrees. Farmers arebusy spreading fertilizer and lime, applyinganhydrous, soil testing, tilling, tiling, and doingconservation work. Happy trails to you, untilwe meet again.

Wilfred Dittmer, Quincy, Adams County: As we wind downthis unusual year of unusual out-comes and weather, let us reflectjust a moment. Last Februarybrought record snowfall for many.March rainfall was only 1 inch.April and May produced about 4inches each month and then Junehad more than 13 inches. July

produced only 1.1 inches of rain, and it almostforgot to rain at all in August at 0.2 of an inch.September gave us 1 inch, and Octobermeasured 1.85 inches for a total of about 27inches for the growing season. So, in spite ofbeing so dry so long, many enjoyed goodyields with most corn slightly above averageand most soybeans a little below average. Westill have a few weeks left of this unusual year,and I am sure we are all very thankful for whatwe have, especially for our health and lovedones this Thanksgiving season. It is a littleearly, but Merry Christmas to all and enjoyyour winter, wherever you may be.

Carrie Winkelmann, Tallula, Menard County: Corn and soy-bean harvest is complete foralmost everyone in the county. Fallnitrogen application was in fullswing before the 1.4 inches of rainwe received on Thursday. Fall her-bicide programs are in variousstages of completion. BabyWinkelmann is still on track to be

a Christmas/New Years baby. Here’s hopingfor a nice tax deduction!

Todd Easton, Charleston, Coles County: An inch of rain inthe gauge on Thursday haltedwork for now. If the forecast holdstrue, farmers and service compa-nies may be on an extendedbreak. Fortunately, preceding thisweather event was a beautifulmid-fall week for fieldwork thatwitnessed virtually the last of the

crops cleared off the field and put in the bin.Many fall tillage operations and dry fertilizerapplications were completed, and anhydrousammonia was applied on several acres. It wasan interesting year as we overcame anotherchallenging planting season, witnessed thecrops battle tough summer weather condi-tions, and thankfully in the end were blessedwith a much better harvest than many of usanticipated. Once again we find ourselves atthe end of the Cropwatcher reporting seasonand already eagerly anticipate what the nextgrowing season will bring. Until then, have awonderful holiday season and best wishes forthe coming year.

Doug Uphoff, Shelbyville, Shelby County: AnotherCropwatcher year draws to a close,and we already are preparing fornext year’s crop. We have complet-ed all fieldwork and have all but260 acres of anhydrous applied.We needed a rain on the last fieldsthat needed NH3 and we wereblessed with 1.5 inches. We will

see you next crop-watching season. Be safeand God bless the family farmers.

FarmWeek Page 6 Monday, November 7, 2011

CROPWATCHERSLast report of the season

Page 7: FarmWeek November 7 2011

Dave Hankammer, Millstadt, St. Clair County: Like ablank canvas waiting for the mas-ter artist to create a new master-piece, many of the fields in thearea are now empty awaiting nextyear’s crop. Harvest is done withthe exception of a few isolatedfields of double-crop soybeansand late corn. Yields have been

respectable considering the weatherextremes we experienced during the plant-ing and growing season. There are reportsof low yields in areas where plantings weredelayed into the month of June and the heatof the summer affected pollination. This pastweek we received up to 0.8 of an inch ofrain, which slowed down the harvest of thefew remaining crops. Since this is the lastreport for the year, I wish all of you happyholidays and a successful year. Local grainbids are: corn, $6.42; soybeans, $11.96;wheat, $6.15.

Randy Anderson, Galatia, Saline County It was an inter-esting season, to say the least. Itstarted off real well with continualrains and we got rain on and offduring the summer. We ended upwith crops turning out right ataverage with some places aboveand some below. Soybeans, Ifeel, were just an average crop. I

want to thank everybody who reads this arti-cle and has commented on my reports.Everybody have a good holiday season andremember the reason for the season.

Ken Taake, Ullin, Pulaski County: We managed to finishharvest on Wednesday. I thinkmost farmers in the area areclose if not finished with harvestfor this year. I always seem tobreathe easier to have harvestover and ready to start lookingforward to next year. It was a dif-ficult year with too much moisture

early and then a very dry summer. We arethankful our corn yields were down only 10percent from our average and our soybeansyields were down about 15 percent. The high-er commodity prices will sure help make upsome of that difference. Always optimisticand hopeful for next year. Try to have a safewinter season and enjoy time with your familywhen things do finally slow down on yourfarm.

Rick Corners, Centralia, Jefferson County: What a year!Wet, dry, bad, worse, and fin-ished somewhere in between. Itwas one of those years when it’sbetter to be lucky than good.Beans planted in late July andstill no killing frost by Nov. 4,wow. Now that is rolling the dicewell. Thanks for putting up with

my silliness for another year, and I hope tosee you all on down the trail.

Dan Meinhart, Montrose, Jasper County: Fieldwork wasgoing full-steam-ahead until therains moved in Thursday morn-ing. Amounts averaged about ahalf inch. The temperatures dur-ing the day were mild. The nightswere cooler with jack frostappearing some mornings. A fewfields remain to be harvested.

Fall tillage and fertilizer and chemical applica-tions have been taking place. The wheat hasemerged and is looking good. Rain is expect-ed to return the first part of this week. Have asafe rest of the fall and winter.

Kevin Raber, Browns, Wabash County: Rain Thursday ofaround 0.5 of an inch slowedfield activities. Harvest is proba-bly 90 percent done. I needanother three days and I will bedone with harvest. I’ve been dis-appointed with my corn yields,but I’m happy with my beans. Inwrapping up this last report, I

would say that this year has been strange, dif-ficult, stressful, and many more adjectivesyou might want to add to describe it. But, asalways, the Lord blessed us with a bountifulharvest.

Dean Shields, Murphysboro, Jackson County: The pastweek’s weather was pretty nicethe first of the week, then we gotrain on Thursday, which sloweddown the harvest. Harvest iswinding down. The yields havebeen disappointing for both cornand soybeans. There was quite abit of wheat being planted, and

it’s looking pretty good. To summarize theyear, we went through a flood, a drought, andextreme heat, and we just look forward to nextyear. Only hope that the prices stay high.Everybody take care during harvesting.

Jimmy Ayers, Rochester, Sangamon County: We got 1.6inches of rain that startedThursday. It pretty much allsoaked in and brought everythingto a halt. Most of the crops havebeen harvested, and a lot of field-work has been done. Several areputting on anhydrous, fertilizer,and lime. Corn yields this year

were a little less than expected. They rangedanywhere from 65 to 184 bushels per acre.Around our place, the beans are running froma 48 bushel average up to 63. Markets arestill offering a pretty good rate of return. Ihope everybody had a good year and I amlooking forward to next year.

David Schaal, St. Peter, Fayette County: Showers moved inhere early Thursday morning andhung on all the way throughFriday, which left a strong inch inthe rain gauge. Harvest in thearea is all but complete. Therewas some fall tillage and fertilizerand chemical application goingon until the rain hit. For the most

part, everyone is pleased with yields theyended up with considering the long stretch ofheat we had this summer and the lack of rainlater in the growing season. Now I’m market-ing the crop and working on next year’s cropplan. Have a good rest of 2011.

Ted Kuebrich, Jerseyville, Jersey County: Jersey Countyreceived 1.3 inches of rain onThursday and that put a stop toharvesting and fall tillage. Theground temperature is right forapplying anhydrous ammoniaand before the rain, farmerswere hard at putting it on. To tryto sum up the harvest this year,

the yields turned out about average. Cornyields ran from 135 to just around 200bushels per acre. Bean yields ranged from 40to around 60 bushels. It was a pretty goodyear considering the late planting this springand the hot, dry summer. Prices at JerseyCounty Grain, Hardin: October corn, $6.42;January 2012 corn, $6.47; March 2012 corn,$6.54; October beans, $12.01; January 2012beans, $12.19; March 2012 beans, $12.14.

Page 7 Monday, November 7, 2011 FarmWeek

CROPWATCHERS

Reports received Friday morning. Expanded crop and weather infor-mation available at {www.farmweeknow.com}.

Rain a welcome sight despite fieldwork delaysBY DANIEL GRANTFarmWeek

A cold front that broughtwidespread rainfall to theregion the middle of lastweek temporarily delayedmost fieldwork activity.

But many farmers, at leastthose in the southern two-thirds of the state, probablydidn’t mind.

October rainfall averagedjust 1.79 inches statewide,1.12 inches below normal,which made it the 21st-dri-est October on record dat-ing back to 1895.

And a moderate to severedrought still was in effect inparts of Western Illinois asof the first of last week,according to Jim Angel,state climatologist with theIllinois State Water Survey.

“I had an inch and a quar-ter of rain (last week),” saidKen Reinhardt, a FarmWeekCropwatcher from MercerCounty. “This was thebiggest amount in months.”

Tim Green, a Cropwatch-er from Stark County,reported similar rainfallamounts in his area lastweek ranging from 1 to 1.25inches.

each year in November. Thecentral Midwest, from DesMoines to Indianapolis, hasreceived measurable snowfallin November 75 percent ofthe time in recorded weather

history, according to theMidwestern Regional Cli-mate Center.

The median date for thefirst snowfall in Chicago isNov. 20.

“It was greatly appreciat-ed, and needed,” Green said.“We were really, really dry.”

Overall, harvest last weekwas winding down statewideas 89 percent of corn and 94percent of soybeans were in

the bin. Harvest as of thefirst of last week was 18 per-cent ahead of the averagepace for corn and 14 percentahead of the average pacefor beans.

“Harvest at our farm isalmost complete,” said RyanFrieders, a Cropwatcherfrom DeKalb County.

Most of the remainingcorn crop is in fields inNorthwestern and North-eastern Illinois where har-

vest last week was aboutthree-fourths complete. Forsoybeans, most of theremaining crop last week wasin Southwestern Illinoiswhere harvest was 70 per-cent complete.

“Hopefully, we will nothave too many more raindelays because there isapproximately 30 to 40 per-cent of the corn left to har-vest,” said Bernie Walsh, aCropwatcher from Winneba-go County.

Bryce Anderson, DTN agmeteorologist, last week pre-dicted drier, fairly seasonableconditions in Illinois thefirst half of this month.

After that, Midwesternerscould experience anotheractive winter season. Parts ofthe western U.S. and EastCoast last week wereslammed with heavy snow-fall.

“We have a new round ofLa Nina conditions (cooler-than-normal water tempera-tures) in the Pacific,” Ander-son said. “With a La Nina,these types of (heavy snow-fall) events are possible.”

Illinois typically receivesits first measurable snowfall

‘We have a newround of La Ninaconditions in thePacific.’

— Bryce AndersonDTN ag meteorologist

Page 8: FarmWeek November 7 2011

rural ISSuES

FarmWeek Page 8 Monday, November 7, 2011

Water management drawing attention as conservation tool

BY KAY SHIPMANFarmWeek

Drainage water table man-agement has shown promiseas a conservation tool tomanage nitrogen losses.

Twenty field trials in fivestates, including Illinois, haveshown good results, accord-ing to Harold Reetz, a con-sulting agronomist and thedemonstration coordinatorfor the Indian Creek Water-shed Project in LivingstonCounty.

Drainage water manage-ment uses control structuresto raise the water table duringcertain periods to preventnitrogen losses.

Among the 20 field sites,the practice held back onaverage 34 to 35 percent ofthe nitrogen, Reetz estimated.

Three of the ConservationInnovation Grant field sitesare located in Illinois at Barry,Hume, and Carmi.

Because much tiling is beingdone this fall, the timing is rightto consider drainage water man-agement, said Reetz and Steve

vation Activity Plan (CAP) pay-ment that provides financialassistance for a drainage watermanagement plan developed bya certified technical serviceprovider.

EQIP also offers financialassistance for the installationof water control componentsfor a drainage water manage-ment system.

Those would include awater control structure andthe accessories to attach it toexisting tile.

Some farmers may be eligi-

ble for a management incen-tive payment, based on theaffected acres, to monitor thestructures and other activitiesrequired to manage the waterlevel.

Staff with the NRCSregion of Illinois, Iowa, Mis-souri, Indiana, and Ohio havebeen reviewing drainagewater management as a con-servation practice, accordingto Dozier.

“You will see more empha-sis on this practice as we rollout EQIP this year,” he said.

Baker of Springfield Plastics Inc.Tile systems designed for

drainage water managementdrain around field contourscompared to a traditional systemthat does not, said Baker.

An Agriculture DrainageManagement Coalition leader,Baker acknowledged watermanagement systems that drainbased on contours are moreexpensive, ranging from $50 upto $200 more per acre.

However, it would be

expensive, and in some casesnearly impossible, to retrofitexisting tile systems for watertable management, both Bakerand Reetz noted.

Farmers may be eligible forincentives for several aspectsof drainage water manage-ment through the NaturalResources Conservation Serv-ice (NRCS), according to IvanDozier, Illinois assistant stateconservationist for programs.

Through EnvironmentalQuality Incentives Program(EQIP), NRCS offers a Conser-

Economist: Wireless phones may spur broadband growthIncreased demand for

wireless phones that have theability to access the Internetcould spur the growth ofbroadband services in ruralareas, according to a George-town University economist.

“That’s good news. Wehave prospects of gettingbroadband to less denselypopulated areas” via wirelesstechnology, John Mayo withthe Georgetown Center forBusiness and Public Policysaid recently in a FarmWeek-

RFD Radio interview.Mayo recently released a

study about Americans shift-ing to wireless phones fromlandlines and the implicationsfor rural America.

Nationwide, a quarter ofall households have mobilephones only, according toMayo. That percentage ismuch higher, 70 percent,among individuals who areyounger than 30. He addedincreasing numbers of thosemobile devices have the abili-

ty to access the Internet. “We find the demand (for

wireless services) is evenhigher” in rural areas com-pared to other parts of thecountry,” Mayo said. Howev-er, “the infrastructure hasn’tbeen built out as rapidly inrural areas.”

Illinois broadband projectsare using a variety of tech-nologies to provide high-speed Internet to rural areas.

No consensus has beenreached on the best methodto provide access in rural Illi-nois.

“I would advocate gettingbroadband to rural areas inthe most efficient and lowestcost ways available ... In ruralareas, the most efficient waymay be wireless,” Mayo said.

Mayo said he had not stud-ied the impact of broadbandon rural economic growth.

However, he said “intu-ition” would lead one tobelieve broadband woulddrive economic growth inrural areas because the tech-nology would overcome geo-graphic isolation of ruralareas and potentially broadenthe economic base, he said.

In addition, broadbandavailability also might “stemthe outflow (of young peo-ple) away from rural areas,”Mayo added.

Analyses and other informa-tion about wireless communica-tion and rural broadband areavailable online at{http://cbpp.georgetown.edu}.— Kay Shipman

‘We f ind the demand (for wirelessservice) is even higher in rural areascompared to other parts of the coun-try.’

— John MayoGeorgetown University economist

Auction CalendarMon., Nov. 7. 10 a.m. Livingston CoFarmland. Virginia Ruth Yergler Trust,GRIDLEY, IL. Terry Wilkey AuctionService. www.terrywilkey.comMon., Nov. 7. 6 p.m. Farmland.

Reginald N. Blankenship Estate, DON-NELLSON, IL. Langham Auctioneers.Tues., Nov. 8. Farmland Sangamon Co.Soy Capital Ag Services. www.soycapi-

talag.comWed., Nov. 9. 9:30 a.m. Marshall Co.Farmland. Mooberry Family Trust A&B,TOLUCA, IL. Lauf Auction Service. bid-

dersandbuyers.com/laufWed., Nov. 9. 6 p.m. Land Auction. TheHelen E. & Carl J. Huels Sr. Trust, BAR-

TELSO, IL. Mark Krausz AuctionService. www.krauszauctions.comWed., Nov. 9. Farmland Piatt Co. SoyCapital Ag Services. www.soycapita-

lag.comWed., Nov. 9. 10 a.m. Winnebago Co.

Land Auction. ROCKFORD, IL.www.mgw.us.com

Thurs., Nov. 10. 10 a.m. Knox Co. LandAuction. Marilyn J. Main Trust, WOOD-

HULL, IL. Van Adkisson AuctionService, LCC. www.biddersandbuy-

ers.comThurs., Nov. 10. 6 p.m. CST. WabashCo. Land Auction. Estate of Francis H.Eagle, MT. CARMEL, IL. Parrott Real

Estate and Auction Co., LLC. www.sell-afarm.com

Fri., Nov. 11. 8:30 a.m. ConsignmentAuction & David McClelland Estate,

TREMONT, IL. Cal Kaufman and Brent

Schmidgall, Auctioneers.Sat., Nov. 12. 9:30 a.m. Large

Auction. Janice Bridwell, MCLEANS-BORO, IL. Don Burke, Auctioneer. auc-

tionzip.com, keyword bridwellSat., Nov. 12. 10 a.m. Farmland RealEstate Auction. Lowell and Rosie

Myers Trust, ORANGEVILLE, IL. ProAuctions, LLC.

www.mudcreekfarms.com/pro-auc-tions.html

Sat., Nov. 12. 10 a.m. Real EstateAuction. Cyrus Johnson Estate, GOD-FREY, IL. Henke Auction and Realty.

www.henkeauction.comSat., Nov. 12. 1 p.m. Grundy Co. LandAuc. Neville Trust, MAZON, IL. Richard

A. Olson & Assoc., Inc.richardaolson.com

Sat., Nov. 12. 10 a.m. LaSalle Co.Land Auc. Evelyn Bitner Trust,MAZON, IL. Richard A. Olson &Assoc., Inc. richardaolson.com

Sat., Nov. 12. 10 a.m. Perry Co. LandAuction. CAMPBELL HILL, IL. Buy A

Farm www.buyafarm.comMon., Nov. 14. 10 a.m. McLean Co.Farmland. Myrtle Thompson Farm,

BLOOMINGTON, IL. Haycraft AuctionCo., Inc. www.haycraftauctions.comTues., Nov. 15. 6 p.m. Land Auction.The Ralph D. Siebert Trust, MAS-COUTAH, IL. Mark Krausz AuctionService. www.krauszauctions.com

Tues., Nov. 15. 1 p.m. Boone Co. LandAuction. CAPRON, IL. Martin,Goodrich & Waddell, Inc.

wwwmgw.us.com

Fall time to think about tile options

Page 9: FarmWeek November 7 2011

SAfEty

Page 9 Monday, November 7, 2011 FarmWeek

Wanted: community-basedfarm safety trainersBY MARTIN ROSSFarmWeek

A new initiative would use acommunity-based multipliereffect to reduce farm accidentsstatewide.

The Illinois-based GrainHandling Safety Coalition(GHSC) is seeking to recruit 60“community trainers” to edu-cate at least 400 other farmers,family members, and rural resi-dents in on-farm hazard preven-tion and, where necessary, acci-dent response and managementby October 2012.

The coalition recentlyreceived a $168,000 grant fromthe Occupational Safety andHealth Administration (OSHA)to develop a “train the trainer”curriculum and other materialsvolunteer trainers can use toeducate farmers, ag employees,rural youth, and other at-riskgroups. GHSC hopes to launchan initial trainer training pro-gram by May.

Trainers will administer a7 1/2-hour course for commu-nity groups focused on topicssuch as grain bin entry, confinedspace risks, fall protection, andequipment entanglement haz-ards. University of Illinois agsafety specialist Robert Aherinsuggested each trainer couldcoach 10-20 individuals by theprogram’s Sept. 30, 2012, dead-line.

“We would hope trainerswould include respected leadersin their community who have apassion to help make their ruralcommunities safer,” coalitionco-founder and Grain and FeedAssociation of Illinois Execu-tive Vice President JeffAdkisson told FarmWeek. “Wehope they’d be willing to com-mit the time necessary for thetraining and to understand ourcurriculum, so that we’re gettinga consistent message out.”

Aherin reported the coalitioncurriculum would focus notonly on grain and related risksbut also on compliance with

safety laws and regulations.GHSC was founded with an

eye toward “community-basedpartnerships,” and participantsrecently stressed the importanceof “local control” of safety pro-grams relevant to area activities.

Jeffrey Decker, product safe-ty manager with grain bin man-ufacturer GSI, emphasized theneed to train civilians in meas-ures that can “stabilize the situa-tion” until emergency respon-ders arrive.

But ag safety advocates faceseveral challenges in bringingproducers, agribusinesses, andothers together. For example,Decker, who helps train volun-teer firefighters, said legal liabili-ty concerns may make somepaid fire departments reluctantto accept outside training.

Beth Whelan, Mendota-based clinic director with theCommunity Health Partnershipof Illinois, sees a community-based approach as essential toher particular constituency: areaseasonal and migrant ag work-ers. She focuses on training inissues that include pesticide use,heat exhaustion, and, increasing-ly, accident prevention —“That’s where the coalitioncomes in,” Whelan said.

The GHSC training curricu-lum will be translated into Span-ish, to help reach that group,which was targeted during aNorthern Illinois University ses-sion recently. Whelan notedmore widespread adoption ofbilingual safety signage acrossher Northern Illinois region.

She nonetheless stressed agrowing need to help workersattain “the education level that’sneeded for them to understand(safety) material.” That couldentail working with communityEnglish Second Language edu-cation programs.

“Sometimes, the material’swritten at a higher level than(migrant workers) can compre-hend,” Whelan toldFarmWeek.

CORN HEAD CLOSE UP

Kendall County Farm Bureau President Wes Morris, left, describes a corn head to state Rep. David Harris(R-Arlington Heights). Harris and his legislative aide, Linda Heneghan, met with members of his “adopt-ed” county Farm Bureau for a farm tour. They were joined by Cook County Farm Bureau members andstate Rep. Kay Hatcher (R-Yorkville). The group discussed grain industry issues after touring the GRAIN-CO FS elevator. Livestock issues were the topic at Phil Thanepohn’s cattle farm. Harris rode on Morris’combine and learned about harvesting crops. Harris and Heneghan said the farm tour helped them un-derstand more about Illinois agriculture and farm life. (Photo by Christina Nourie, Illinois Farm Bureaunortheast legislative coordinator)

Page 10: FarmWeek November 7 2011

FarmWeek Page 10 Monday, November 7, 2011

“Shining A Light On The Truth”

Illinois Farm Families® are Illinois farmers who support Illinois Farm Bureau®, Illinois Pork Producers Association, Illinois Corn Marketing Board, Illinois Soybean Association, and Illinois Beef Association. We are committed to having conversations with consumers, answering their questions about food, farmers, and farming, and sharing what really happens on today’s Illinois family farms. More than 94 percent of Illinois farms are family owned and operated. We are passionate about showing consumers how we grow safe, healthy food for their families and ours.

Back row: Ray and Carol Larson, Betsie Estes, Joelen Tan, Julie Barreda, Emily Paster, Lynn and Mike Martz holding Jaxson Martz.Front Row: Justin and Jamie Martz, Angel Ishmael, Farrah Brown, Amy Hansmann, and Amy Rossi.

IFF595T1

“Shining a light on the truth,” came right out of the mouth of Illinois Farm Families® Field Mom Farrah Brown of Glendale Heights. DeKalb County farmers Mike and Lynn Martz of Maple Park and Kane County farmers Dale and Linda Drendel of Hampshire hosted the Field Moms, who were selected from among on-line applicants.

Deb Moore of Roseville was chosen to work with the Field Moms. Moore (left) talks with Field Moms Angel Ishmael and Farrah Brown about how farmers can determine what their corn yields will be based on examining one ear of corn.

Mike Martz talks with the Field Moms about what to look for when buying meat. The moms also learned how today’s beef is raised and found out how farmers reduce their animals’ stress and manage their health, well-being and comfort.

To learn more about the Field Moms programs:www.watchusgrow.orgwww.facebook.com/illinoisfarmfamilieshttp://twitter.com/ilfarmfamilies

On Saturday, October 15, seven Field Moms (Chicago-area moms who have

is grown and raised. The day included both conversations and hands-on farm activities including combine rides, petting the calves, and helping with the afternoon milking. Dale Drendel said, “We don’t take milk from the cows, they give it to us.”

Lindale Holsteins, a family farm since 1974, Hampshire, IL

Page 11: FarmWeek November 7 2011

the planet

Page 11 Monday, November 7, 2011 FarmWeek

Deere targeting world’s scaled-down needsBY MARTIN ROSSFarmWeek

Moline-based John Deereis preparing for the company’s175th anniversary in 2012.Like a growing number ofagribusiness giants, the Mid-west equipment manufactureris helping the “Third World”to develop.

Major seed companies arefocusing technology wellbeyond the Corn Belt, whileU.S. universities are helping

low-acreage/low-incomefarmers master risk manage-ment and African and EasternEuropean producers are beinginvited into the Internet’ssocial network (see accompa-nying stories).

with a focus on urban-basedeconomic opportunity. Nelsonsees a stronger ag economy fos-tering infrastructure develop-ment and thus overall growth inAfrican and other nations.

Deere itself is investingabout $100 million in Indiansmall tractor production and$190 million in Chinese engine-equipment manufacturing. It ismarketing 36- to 41-horsepow-er tractors in India at an aver-age $7,000 vs. the $300,000-plus cost of a new 296-horse-power tractor in the U.S.

As small-acreage growersaim for marketable yields viamechanization, Nelsonstresses the need for adomestic “dealer channel”that can provide service,parts, and, in some cases,

financing. “We want to take(Deere’s dealership) modeleverywhere around theworld,” Nelson said.

At the same time, he recog-nizes world agriculture doesn’talways follow a U.S. model.Deere conducts customer“focus meetings” in prospec-tive markets in an attempt todetermine the scale and horse-power, tillage equipment, andplanter configurationsrequired for individual crops.

Deere also must reckonwith the regulations and tradepolicies of various emergingmarkets. Import tariffs andembargoes, as well as restric-tions on foreign-made equip-ment or parts in some casesdetermine whether the compa-ny ships U.S.-manufacturedmachinery or opens a newoverseas plant.

U.S. officials can helpensure the global flow ofequipment and ag marketgrowth between the U.S. anddeveloping countries throughtrade expansion, Nelson said.

“In a lot of cases, we shipmachines that are built righthere overseas,” he noted.

In Deere’s case, helpinggrowers globally to ramp upproduction will require scalingdown equipment for smallerfarmers. In an effort to doubleannual sales to $50 billion by2018, it is offering productssuch as lightweight, lower-costtractors better suited, say, toIndian rice production.

Barry Nelson, a spokesmanwith Deere’s Ag and TurfDivision, sees “tremendouspotential for agriculture, espe-

cially the global markets.” Henoted projections that theEarth’s population will reach 9billion by 2050 (it reached 7billion last week). “We needequipment, we need technolo-gy, we need production agri-

culture to be able to feed thisgrowing population,” he said.

“This will be happening par-ticularly in India, China, downin Brazil,” he said in an RFDRadio-FarmWeek interview.“These are huge growth coun-tries, and these people also willwant a higher quality of foodthan they’ve had in the past.

“We take a look at whatkinds of agricultural equip-ment needs they have in thesecountries. Quite frankly, thereare smaller tractors we sellquite a lot of particularly inIndia. There is tremendouspotential for more advancedequipment in these countriesas everyone around the worldlooks at ways to produce morefood and better-quality food.”

Many developing nationshave seen rural outmigration

Cassava projectunderlines yieldimpact on povertyClaude Fauquet heads the Virus Resistant Cassava for

Africa project. The project’s goal is to impact 20 millionAfricans by 2020, the director of the St. Louis-based DanforthCenter’s International Laboratory for Tropical AgriculturalBiotechnology told FarmWeek. He notes African growers are plagued by a “cocktail of

viruses” that impact cassava yields and quality. Genetic virusresistance is a key focus for a team looking to “multiply currentproductivity several-fold,” Fauquet said.Fauquet hopes the first GMO varieties may be available on

the continent by 2015. Cassava is a shrubby tropical plantgrown mostly for its starchy root.Improved productivity offers potential benefits for both

Africa and U.S. producers, he said. Yields below 10 tons perhectare (roughly 2.5 acres) are barely sustainable, while 15tons can assure food security, and 20 tons offers a “cash crop”that may enable a country to export — and, ultimately, import— ag goods, he said. “Right now, the productivity of cassava in Africa is less than

10 tons per hectare,” he related. “Our field trials are showingthat we can multiply that maybe fourfold without too many diffi-culties, with an improved crop. “The real difficulty is, how do you go from field trials to

reaching millions of farmers in Africa, when there is no privatesector to do it and there is poor infrastructure? We know theseconstraints and are beginning to work with them.”The project recently received nearly $12 million in added

funding from the Bill and Melinda Gates Foundation, Monsan-to, and the Decatur-based Howard Buffett Foundation.Regulatory approvals are a major challenge for GMO cas-

sava developers, but Fauquet has seen a positive response tothe project among African growers and policymakers. The Danforth Center’s initial request for cassava field trialswas rejected eight years ago. But hunger concerns and thesuccess of GMO corn in South Africa and Bt cotton in WestAfrica have spurred “mindset changes” toward biotechnologyin political circles over the past few years, Fauquet said.The Danforth Center and its partners will donate modified

cassava varieties for African use, but Fauquet stressed eachindividual country “will have to take it’s own responsibility for itsown people.” “If we continue to see the success we’re seeingnow, I don’t think it will be very difficult to convince whoever hasto make the (approval) decision,” he argued. -– Martin Ross

In an increasingly ravenous, Internet-con-nected world, there’s no such thing as TMI —too much information.

Croatia’s Matija Kopic hopes to use “socialmedia” to feed the world’s growing need forfood and farmers’ need for the data that willhelp them produce it. Kopic is the 25-year-oldfounder and CEO of Farmeron.com, and hisreported aim is to “disrupt the world’s agricul-ture” — in a good way.

The website/online tool is designed to assistin farm data management, performance analy-sis, and production planning and foster globalfarmer networking. That excites Chicago com-munications specialist Michelle Damico, whobegan “tweeting” regularly with Kopic after dis-covering his site.

High-tech networking may be the bestoption for bringing low-tech farmers into themodern world of high-yield, high-efficiencyproduction. Broadband service is spreadingacross Africa and other remote rural regionsthat lack physical infrastructure or the resourcesfor ag Extension education.

“This is going to make it possible to bringdata online and make it easy for farmers tounderstand their operational data so that theycan improve efficiencies,” Damico said in anRFD Radio-FarmWeek interview.

“It’s allowing farmers to create a digital poolof evidence on how to produce food. Imaginehaving data about your farm at your fingertipswhile you’re out in the field, and being able toshare that data with other farmers — howthey’re reducing costs in their dairy productionor how they’re getting their items to marketquicker.”

Large parts of Africa gained access to inter-national communications bandwidth in 2009

and 2010 via underwater cables, and new land-based fiber optic systems are going online.Mobile data and third-generation (3G) broad-band services are helping extend access beyondmajor cities.

Kerry Peete, Monsanto senior vice presidentof global strategy, notes a growing number ofIndian farmers are using cell phones. His com-pany’s “Dr. DeKalb” system enables Monsanto-DeKalb agronomists to consult with producersby voice or text. Peete sees technology helping“literally millions of Indian growers” pick thebest varieties and improve yields.

Kopic, a music and fishing enthusiast, gradu-ated in 2010 from Croatia’s University ofZagreb with a master’s degree in informatics(data technology and use). His vision of one-to-one ag networking attracted investors thatincluded 500 Startups, a Silicon Valley Internetbusiness-service incubator.

Kopic’s father is a dairy producer, and theyoung Croatian initially focused on that sector.However, he plans other online “modules” forgrain and specialty operators, tapping volun-teer data from farm systems and technologiesto formulate field-portable statistics andreports.

While Damico sees the developing worldbenefiting through shared information, shebelieves Kopic’s brainchild also may prove aboon to U.S. farmers looking to boost produc-tivity and reduce costs. Further, Farmeroncould help educate consumers, she suggested.

“Illinois Farm Bureau is all about spreadingthe word to consumers about the work that’sinvolved on the farm in order to get food to mytable,” Damico acknowledged. “This is just onemore tool for doing that on a global scale.” —Martin Ross

New app could be beneficialfor farmers across globe

‘There is tremendous potential for moreadvanced equipment in these countriesas everyone around the world looks atways to produce more food and better-quality food.’

— Barry NelsonJohn Deere

Page 12: FarmWeek November 7 2011

FarmWeek Page 12 Monday, November 7, 2011

The passage of the Free Trade Agreements (FTAs) with Colombia, Panama, and South Korea has been a long standing legislative priority for our organization. With your diligence and persistence, Congress recently passed these three Free Trade Agreements. Your voice

Illinois agriculture.I’d like to say thank you to those listed below that responded to our recent action request and made calls, wrote emails, and personally told your Congressman and Senators (and reported those contacts to us). It is communication from you, the constituents, to your

members to be engaged and respond to our organization’s action requests. Making those contacts is necessary and easy. Visit www.ilfb.org/fbact to see how easy it is or contact your

Sincerely, Philip Nelson, President

John Brady, AdamsLinda Bush, AdamsBrad Cassens, AdamsP. Rick Edwards, AdamsPam Fretwell, AdamsEsther Shrader, AdamsTammy Smith, AdamsTerry Smith, AdamsMike Sorrill, AdamsRob Tedrow, AdamsDiane Cleland, BooneJohn Cleland, BooneMarshall Newhouse, BooneJon Boylen, BrownBrian Ingram, BrownJill Frueh, BureauWilliam Naffziger, BureauBrenda Bizaillion, CalhounJonathan Davis, CalhounRobert Reed, CalhounRobert Snyders, CalhounSharon Van Dyne, CalhounFrancis Snider, CarrollRichard Coop, Cass-MorganJacob Freeman, Cass-MorganJon Freeman, Cass-MorganKayla Freeman, Cass-MorganSue Freeman, Cass-MorganAmy Hadden, Cass-MorganCarolyn Hadden, Cass-MorganDale Hadden, Cass-MorganRobert Hadden, Cass-MorganRoger Hardy, Cass-MorganRick Pettit, Cass-MorganKenneth Rahe, Cass-MorganRichard Rees, Cass-MorganJudy Savage, Cass-MorganJohn Tomhave, Cass-MorganSherri Tomhave, Cass-MorganDavid Wessel, Cass-MorganJeffrey Fisher, ChampaignChristopher Hausman, ChampaignCora Kirts, ChampaignDuane Strunk, ChampaignNancy Strunk, ChampaignDarlene Uken, ChampaignLinden Warfel, ChampaignJerry Watson, ChampaignBrad Zwilling, ChampaignPaula Zwilling, ChampaignBrad Daugherty, ClarkSteve Hosselton, ClayKevin Logan, ClayKeri Ulm, ClayDarryl Brinkmann, ClintonGary Kennedy, ClintonRay Krausz, ClintonMichael Poettker, ClintonCliff Schuette, ClintonMary Jo Varel, Clinton

James Gutzmer, CookPatrick Horcher, CookJanet McCabe, CookKim Morton, CookRuth Zeldenrust, CookBona Heinsohn, DeKalbSteven Larson, DeKalbGreg Millburg, DeKalbRoy Plote, DeKalbPaul Rasmussen, DeKalbJamie Walter, DeKalbHoward Hedrick, DeWittGene Whitted, DewittLarry Dallas, DouglasKara Kinney, DouglasAdam Markwell, DouglasDarrel Thompson, DouglasJeffrey Young, DouglasMichael Ashby, DuPageThomas Feltes, DuPageSam Lilly, DuPageWilliam Pauling, DuPage

Jack Young, DuPageRay Young, EdgarJason Balding, EdwardsKenneth Clodfelter, EdwardsMike Dean, EdwardsCarson Everett, EdwardsNeil Fearn, EdwardsJim Heindselman, EdwardsTom Marks, EdwardsBryan Roosevelt, EdwardsJames Walker, Edwards

Ken Cripe, FayetteDavid Haase, Ford-IroquoisWilliam Kelch, Ford-IroquoisLeon Malone, Ford-IroquoisRandy Poskin, Ford-IroquoisFredrick Berner, FranklinKenneth Bolen, FranklinDonald Manis, FranklinLeon McClerren, FranklinJ Larry Miller, FranklinJames Odom, FranklinRalph Smith, FranklinJay Webb, FranklinRandy Farr, FultonTony Kelsey, FultonMelissa Drone, GallatinHugh David Scates, GallatinSteven Albrecht, GreeneMichael Davis, GreeneJoseph Kinser, GreeneMichael Painter, GreeneChad Schutz, GreeneStacy Schutz, GreeneCash Biros, GrundyTasha Bunting, GrundyMichael Carey, GrundyScott Halpin, GrundyRobert Johnson, GrundySteve Kodat, GrundyPhil McArdle, GrundyJ.C. Pool, HamiltonSara Brockman, HancockMichael Carlisle, HancockW. Cary Gray, HancockMichael Hamman, HancockTed Knorr, HancockRod McGaughey, HancockTerry Pope, HancockJoseph Scheetz, HancockBryan Stevens, HancockJoseph Zumwalt, HancockSam Zumwalt, HancockDwayne Anderson, HenryWayne Anderson, HenryKatie Boruff, HenryJune Carlson, HenryJoshua Curry, HenryJames Larson, HenryKaren Lyman, HenrySteve Owens, HenryEllie Stackhouse, HenryLawrence Dietz, JacksonTerry Rosenberger, JacksonMichael Evans, JasperJeff Ochs, JasperJoyce Ochs, JasperRichard Ochs, JasperNicole Probst, JasperMary Jane Corners, JeffersonRick Corners, JeffersonJohn Kiefer, JeffersonRobert Kiefer, JeffersonHugh Moore, JerseyJune Moore, JerseyTom Moore, JerseyKim Murray, JerseyKenneth Schafer, JerseyDaniel Schetter, Jersey

Ron Lawfer, JoDaviessDavid Allbritten, JohnsonRobert Gehrke, KaneLouise Johnson, KaneMichael Kenyon, KaneAlan Volpp, KaneCharles Grotevant, KankakeeDennis Johnson, KankakeePaula Karlock, KankakeePatrick Koerner, KankakeeChad Miller, KankakeeKeith Mussman, KankakeeMark Tanner, KankakeeDan Reedy, KendallJames Desutter, KnoxLori Engel, KnoxTheodore Mottaz, KnoxDavid Serven, KnoxGlenn Stevens, KnoxMonica Stevens, KnoxKrista Swanson, KnoxKenneth Beck, LaSalleDavid Myer, LaSalleStephen Riskedal, LaSalleBrad Temple, LaSalleMonty Whipple, LaSalleDennis Green, LawrenceDanelle DeSmith, LeeDon Meyer, LeeC. Edwin Morris, LeeRonald Schoenholz, LeeJames Sheaffer, LeeSteven Sheaffer, LeeMarilyn Shippert, LeeEleanor Zimmerlein, LeeJason Bunting, LivingstonRosella Duffy, LivingstonJulie Fosdick, LivingstonTeresa Grant-Quick, LivingstonDennis Haab, LivingstonJames Harms, LivingstonDonald Immke, LivingstonRoger Wahls, LivingstonLarry Gleason, LoganDavid Carr, MaconSteven McCoy, MaconMathew Muirheid, MaconMelissa Muirheid, MaconEmmett Sefton, MaconTim Stock, MaconRichard Vissering, MaconMark Dugger, MacoupinEdward Marburger, MacoupinFrank Dorris, MadisonGlenn Gindler, MadisonDavid Grotefendt, MadisonEugene Gvillo, MadisonRoss Hemann, MadisonRussell Henke, MadisonKenneth Wieseman, MadisonEvelyn Bartley, MarionSteven Brummel, MarionPaul Chitwood, MarionEdward Gerstenecker, MarionCharles Holz, Marshall-PutnamKenneth McKee, Marshall-PutnamRonald Armbrust, MasonMichael Behrends, MasonLuellen Betzelberger, MasonZachary Charlton, MasonRandy Fornoff, MasonNoreen Frye, MasonDee Dee Gellerman, Mason-MenardDouglas Gellerman, MasonAlbert Hoesman, MasonLouis Moehring, MasonDean Pfeiffer, MasonAdam Shissler, MasonJeffrey Smith, MasonBraden Thomas, MasonDeAnna Thomas, MasonJohn Wallbaum, MasonEric White, Mason

Rollo Burnett, MassacTammie Obermark, MassacBrandon Phillips, MassacDebra Travis, MassacJeffrey Weber, MassacJeffrey Butler, McDonoughGrant Curtis, McDonoughMellisa Herwig, McDonoughLarry Hopkins, McDonoughMark Peterson, McDonoughMark Wolford, McDonoughSue Henning, McHenryLinnea Kooistra, McHenryDan Volkers, McHenryMark Hines, McLeanR Scott Hoeft, McLeanDavid Meiss, McLeanTerry Entwistle, MenardLarry Evers, MenardGary Jurgens, MenardDennis Kunken, MenardDavid Leischner, MenardWilliam Montgomery, MenardHarry Schirding, MenardMark Stewart, MenardKyle Winkelmann, MenardKendra Bolen, MercerJohn Longley, MercerGeorge Obernagel, MonroeMark Seboldt, MonroeBrian Niemann, MontgomeryAndy Bolsen, MoultrieSteve Bonnett, MoultrieDonald Bryant, MoultrieRandall Bulthaus, OgleDonald Cappel, OgleCharles Cawley, OglePatricia Cawley, OgleBarbara Detig, OgleJohn Deuth, OgleBrian Duncan, OgleStanley Eden, OgleRoger Hickey, OgleMaryEllen Strode, PeoriaJohn Smith, PerryGary Timpner, PerryGerald Zmudzinski, PerryEmily Bakken, PiattFrederick Bradshaw, PikeKim Curry, PikeDavid Gay, PikeBryan Koeller, PikeRonald Myers, PikeBlake Roderick, PikeJeremy Thomas, PikeJames Van Dyne, PikeRobert Spaulding, Pulaski-AlexanderKenneth Taake, Pulaski-AlexanderKenton Thomas, Pulaski-AlexanderRichard Guebert, RandolphMichael Kuhn, RandolphJack McCormick, RandolphDeAnne Bloomberg, Rock IslandThomas Mueller, Rock IslandDennis Vandaele, Rock IslandJanette Anderson, SalineRandall Anderson, SalineJoe Bramlet, SalineGlendel DeNeal, SalineSamuel DeNeal, SalineJames Haney, SalineJody Hughes, SalineJames Patterson, SalinePat Patterson, SalineRichard Rister, SalineGrace Tison, SalineLowell Tison, SalineMeriam Tison, SalineHazel Tucker, SalineDiana Beaty, SangamonLarry Beaty, SangamonLee Benanti, SangamonJames Birge, SangamonDaniel Boston, SangamonLynn Chard, SangamonJim Cimarossa, SangamonKevin Coultas, SangamonSteven Dudley, SangamonAllen Entwistle, SangamonAndrew Goleman, SangamonCraig Hall, Sangamon

Cynthia Kinner, SangamonJames Kinner, SangamonMichael Kinner, SangamonRodney Koonce, SangamonToni Krone, SangamonGarry Niemeyer, SangamonRichard Ramsey, SangamonDavid Ray, SangamonMark Reichert, SangamonPaul Rice, SangamonEdward Seifert, SangamonRoxy Seifert, SangamonTimothy Seifert, SangamonDonnie Thornton, SangamonRyan Esther, SchuylerChad Kelly, SchuylerHaley Kelly, SchuylerKent Prather, SchuylerKelly Westlake, SchuylerHarold Brown, ScottJeff Schone, ScottAndrew Sellars, ScottMichael Swisher, ScottDwane Hartman, ShelbyAmy Rochkes, ShelbyDeanna Uphoff, ShelbyTony Uphoff, ShelbyTroy Uphoff, ShelbyDavid Hankammer, St. ClairJake Anderson, StarkJamie Schaffer, StarkKathy Brenner, StephensonBruce Johnson, StephensonPaul Schmidgall, TazewellCharles Braden, UnionR. Edwin Eddleman, UnionSharon Hall, UnionDale Moreland, UnionLucille Rich, UnionJay Hageman, VermilionMichael Marron, VermilionDavid Sadler, VermilionDonald Adkisson, Warren-HendersonKay Adkisson, Warren-HendersonLawrence Anderson, Warren-HendersonTammy Brokaw, Warren-HendersonSue Campbell, Warren-HendersonJohn Eisenmayer, Warren-HendersonAdam Martin, Warren-HendersonDeborah Moore, Warren-HendersonPaul Rickey, Warren-HendersonAmy Thompson, Warren-HendersonKathryn Willis, Warren-HendersonMichael Chwasczinski, WashingtonGale Koelling, WashingtonPatrice Koelling, WashingtonSteve Launius, WashingtonDouglas Zacheis, WashingtonFred Blessing, WayneFrank Buchanan, WayneSteven Courtright, WayneLarry Reed, WayneJames Rush, WayneJanet Baumgart, WhiteRobert Baumgart, WhiteLarry Beck, WhiteRichard Curd, WhiteDonald Duvall, WhiteRichard Gates, WhiteKevin McArthy, WhiteGerald Davidson, WillW. Lee Deutsche, WillMary Ann Deutsche-Gearhart, WillGlenn Ginder, WillThomas Nugent, WillDavid Taylor, WillJames Anderson, WilliamsonDuane Wittenborn, WilliamsonBrent Pollard, WinnebagoCarrie Pollard, WinnebagoEarl Williams, WinnebagoSean Arians, WoodfordWayne Blunier, WoodfordDaryl Hodel, WoodfordJanet Hodel, WoodfordKent Hodel, WoodfordJolene Neuhauser, WoodfordDennis Pfanz, WoodfordDale Wyss, WoodfordLoren Zimmerman, Woodford

Page 13: FarmWeek November 7 2011

from the counties

Page 13 Monday, November 7, 2011 FarmWeek

BUREAU — A defen-sive driving course will

be from 10 a.m. to 3 p.m.Thursday and Friday, Nov. 17-18, at the Black Hawk CollegeCommunity Education Cen-ter, Kewanee. Those 55 andolder who are current autopolicy holders may attend.Those who complete thecourse are eligible for a dis-count on their auto insurance.Call the Farm Bureau office at815-875-6468 for reservationsor more information.

• The fall equine seminarseries is scheduled from 6:30to 8:30 p.m. Thursdays inNovember at the Black HawkEast (BHE) Arena. EllenPhillips will discuss pasturemanagement and DennisFrench, veterinarian, willspeak on “Managing Disas-ters, the Inside Story” thisThursday. Harmony Horse-manship will demonstrateEqui-soccer on Nov. 17. Ses-sions are free for 4-H andFFA members and BHE stu-dents. Cost for the public is$5 per session. Call the FarmBureau office at 815-875-6468to register or for more infor-mation.

• A college open house dayfor agriculture will beWednesday, Nov. 16, at theMarshall-Putnam CountyFarm Bureau office, Henry.Two sessions are available:from 10 to 11:30 a.m. andfrom 12:30 to 2 p.m. Allsophomore, junior, and seniorstudents from Bureau, Mar-shall, Putnam, Stark, andWoodford counties who areinterested in an agriculturalcareer may attend.

• Wellness screenings willbe from 8:45 a.m. to 3:30 p.m.Friday, Nov. 18, at the FarmBureau office. Members mayreceive four tests for $100, asavings of $35. Call 877-732-8258 for an appointment.

FULTON — TheWomen’s Committee

will sponsor a “Design on aPine” workshop from 6 to 9p.m. Tuesday, Nov. 29, at theFarm Bureau office. Julia Pry-or, University of IllinoisExtension program coordina-tor and Master Gardener, willpresent the program. Cost is$5. Bring an artificial wreathor garland or your own plantmaterial and decorative itemsto use or share. Call the FarmBureau office at 309-547-3011for reservations or moreinformation.

• Farm Bureau, Spoon Riv-er College, University of Illi-nois Extension, and JohnWood Community Collegewill sponsor a four-part locallygrown workshop series. Eachsession will begin at 6:30 p.m.and be held at Spoon RiverCollege Campus. The topicsand dates are: Local Food

and Gavin Pope will followthe lunch. They will appraisesmall items. Call the FarmBureau office at 217-532-6171by Thursday for reservationsor more information.

PEORIA — The annualmeeting will be a 5 p.m.

Saturday at the Dunlap HighSchool. Jay Hendren, an Ohiocomedian, will provide theentertainment. Cost is $20.Call the Farm Bureau officefor more information.

• Florida citrus and TerriLynn nut orders are due byMonday, Nov. 21. Membersmay order oranges, grapefruit,and tangelos in 20- or 40-pound containers. Nuts areavailable in one-pound bags.Delivery to the Farm Bureauoffice will be Wednesday, Dec.14. Call the Farm Bureau officeor go to the website for anorder form or more informa-tion.

PIKE — Farm Bureauand Twin Rivers Coun-

try Financial will sponsor anestate and retirement planningand long-term care seminar at5:30 p.m. Tuesday, Nov. 15, atthe Farm Bureau office. Din-ner will be served. Call 285-4427 or 285-2233 for reserva-

tions or more information.

SCOTT — Farm Bureauand Twin Rivers Coun-

try Financial will sponsor anestate and retirement planningand long-term care seminar at5:30 p.m. Tuesday, Nov. 15, atthe Pike County Farm Bureauoffice, Pittsfield. Dinner willbe served. Call 742-3182 or742-3351 for reservations ormore information.

VERMILION — Flori-da citrus, nuts, snacks,

and cheese from LudwigFarmstead Creamery ordersand payment are due byWednesday, Nov. 23, to theFarm Bureau office. Deliveryto the Farm Bureau office willbe Wednesday, Nov. 23. Callthe Farm Bureau office at 217-442-8713 for more informa-tion or download an orderfrom from the website{www.vcfb.info}.

•The Vermilion CountyFarm Bureau Foundation willsponsor its annual silent auc-tion during the annual meetingNov. 29. Items have includedsports memorabilia, food, andsavings bonds. If you have anitem to donate for the auction,call the Farm Bureau office at217-442-8713.

Production: What Does thatMean?, Tuesday, Nov. 29;Growing Options, Tuesday,Jan. 17; Rules and Regulations,Monday, March 12; and Get-ting Down and Dirty, Tuesday,May 22. Cost is $10 per ses-sion or four sessions for $30.Deadline to register is Tues-day, Nov. 22. Call Spoon Riv-er College at 309-649-6264 forreservations and 649-6213 formore information.

HENRY — CountyFarm Bureaus, U of I

Extension, and Black HawkEast (BHE) College will spon-sor a fall equine seminarseries, continuing this Thurs-day and Thursday, Nov. 17.Sessions will be from 6:30 to8:30 p.m. in the BHE Ag Are-na. There is no charge for 4-H and FFA members andBHE students. Cost for pub-lic is $5 for each session. Callthe Farm Bureau office to reg-ister for the sessions.

• Henry, Bureau, and StarkCounty Farm Bureaus willsponsor a defensive drivingcourse from 10 a.m. to 3 p.m.Thursday and Friday, Nov. 17-18, at Black Hawk CollegeCommunity Education Cen-ter, Kewanee. Cost is $30,which includes materials andlunch both days. Both daysmust be attended to receivecertification. Call the FarmBureau office at 309-937-2411for reservations or moreinformation.

• “Bushels for Hunger”continues through Nov. 30 atparticipating grain elevators inHenry, Mercer, Rock Island,Stark, and Whiteside counties.All proceeds from the graindonated will be contributed tothe River Bend Foodbank.Contact your county FarmBureau office for more infor-mation.

LASALLE — Amishcountry cheese and

Florida fruit may be orderedfrom the Farm Bureau. Stopby the office or download anorder form from {www.lasal-lecfb.org}.

• The annual meeting willbe at 6 p.m. Tuesday, Nov. 29,at Pitstick’s Pavilion. Ticketsare $10 and are available at theFarm Bureau office or from amember of the board ofdirectors.

LEE — Lee, Ogle, andWhiteside County

Farm Bureaus, along withSauk Valley Bank, will sponsora harvest crop marketingworkshop at 7 p.m. Tuesday,Nov. 22, at the Comfort Inn,Dixon. Steve Johnson, IowaState University Extensionfarm management specialist,will be the speaker. Call theFarm Bureau office at 815-857-3531 by Monday, Nov. 14,for reservations or moreinformation.

MCDONOUGH —

Farm Bureau, HaleyRisk Protection and Agrono-my Services, Heartland Insur-ance Agency, and 1st FarmCredit Services will sponsor amarketing seminar “Crop Mar-ket Outlook, Strategies andTools” at 11:30 a.m. Monday,Nov. 21, at the SRC Commu-nity Outreach Center,Macomb. Lunch will beserved. There is no charge formembers, but there is a $10charge for non-members. Callthe Farm Bureau office at 309-837-3350 by Thursday, Nov.17, for reservations or moreinformation.

MONTGOMERY —

The annual meetingwill be at 6 p.m. Thursday atthe Knights of ColumbusHall, Taylor Springs. Dinnerwill be served. Cost is $2.Call the Farm Bureau office at217-532-6171 for reservationsor more information.

• The Prime Timers month-ly luncheon and meeting willbe at noon Wednesday, Nov.20, at the Lion’s Club, Hills-boro. A turkey dinner will beserved. Cost is $8. An“Antiques Road Show” withauctioneers Dan Matthews

Page 14: FarmWeek November 7 2011

profitability

FarmWeek Page 14 Monday, November 7, 2011

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $31.51-$51.54 $39.2240 lbs. $47.00-$50.00 $48.8950 lbs. n/a n/aReceipts This Week Last Week 24,466 17,602*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 $86.54 $87.11 -0.57Live $64.04 $64.46 -0.42

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn10-27-11 48.5 20.8 27.710-20-11 43.9 17.5 29.7Last year 73.4 17.7 30.8Season total 207.0 462.0 222.4Previous season total 330.5 472.5 290.2USDA projected total 1375 975 1600Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

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

Steers 122.00 120.36 1.64 Heifers 124.00 120.34 3.66

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$141.67 140.10 1.57

CME feeder cattle index — 600-800 Lbs.

Lamb prices

n/a

China not the cause of higher U.S. corn pricesBY KEL KELLY

It’s argued that Chinesecorn purchases, based on Chi-na’s domestic growth, are thecause of rising U.S. cornprices. I would like to offerreasons why that argument isunrealistic.

First, prices of all com-modities — along with stocks,bonds, metals, oil, and all otherassets traded on financialexchanges — are being drivenby an increase in the quantityof money circulating on thoseexchanges. Corn prices haverisen (and fallen, even as Chi-nese purchases were increas-ing) in parallel with these othermarkets.

Second, China doesn’t need

corn. Its per capita productionis rising each year, adequatelymeeting domestic consump-tion; its imports are in excessof its consumption. It was anet exporter of corn until2009.

China’s domestic consump-tion has increased an annualaverage of 3.8 percent over thelast decade (vs. our 3.3 per-cent) compared to an annualaverage of 12.6 percentincrease in corn prices. TheChinese don’t suddenly need12 percent more food — theysimply have more money intheir pockets to spend onfood.

Third, 15.2 percent of U.S.corn production is exported,

and that percentage has fallen,not risen. China buys just 2.4percent of U.S. corn exports(.004 of a percent of total pro-

duction). Japan buys

29.6 percent,and the topsix pur-chasersabove Chinabuy 74 per-cent of cornexports. Chi-

na is a small importer. Whilethere is a 70 percent correla-tion between the direction ofU.S. corn exports and U.S.corn prices, there is no corre-lation between China’s shareof U.S. exports and the price

of corn in the U.S.Fourth, mathematically

speaking, for China’s corn pur-chases over the relevant periodof 2006-2011 to raise the priceof corn from $2.40 in 2006 toeven $4 (less than today’sprice), China would have tohad spent $24 billion; instead,it spent only 3.1 percent ofthat amount.

Fifth, people confuse mone-tary and real demand. Realdemand consists of exchang-ing what one has produced forwhat one desires to purchasewith that production. Thus,real demand is created by sup-ply.

Increased supply makesprices fall, not rise. Prices rise

while supply increases onlywhen more money is spent(i.e., monetary demand) to pur-chase that increased supply.

Corn prices — and all prices— are rising due to increasedmoney supply; institutionalinvestors borrow newly createdmoney and purchase com-modities for investment pur-poses, thus bidding up pricesto compete with other buyers,including the Chinese (andethanol producers), who mustpurchase dollars for U.S. cornpurchases.

Kel Kelly is GROWMARK’smanager of economic and marketresearch. His e-mail address [email protected].

Kel Kelly

Fall fertilizer applications slowed by warm temperaturesBY DANIEL GRANTFarmWeek

The warm, dry conditionsin October and the first twodays this month that werenearly ideal for harvest wereless favorable for fall fertilizerapplications.

Joe Dillier, director of plantfood at GROWMARK, lastweek reported fall fertilizerapplications so far this seasonare off from last year.

“We are behind last year’space,” Dillier toldFarmWeek. “But it’s not aconcern at this point. We wantto be good stewards” and

await cooler soil temperatures.The statewide average tem-

perature last month was 55.1degrees, a half-degree aboveaverage, according to JimAngel, state climatologist withthe Illinois State Water Survey.

The University of Illinois

recommends farmers waituntil the soil temperaturedrops to at least 50 degreesbefore applying anhydrousammonia.

“We’ve got a lot of anhy-drous sold for the fall, sowe’ve got a lot in front of usto move,” Dillier said. “But it’searly enough (to catch up onapplications). In two weeks wecan move a lot of stuff.”

Dillier reported fertilizerdemand this fall is similar tolast year’s record pace in Illi-nois.

Some analysts predictedU.S. and Illinois farmers nextyear could plant more corndue to price incentives,despite widespread reportsof yield drag on corn-on-corn and continuous cornacres.

“It should be a big fall (forfertilizer applications),” Dilliersaid. “Everything we’re seeingin terms of demand is consis-tent with a lot of corn acreagebeing planted in the spring of2012.”

The strong demand fornitrogen and high commodityprices likely will keep pressureon fertilizer prices.

The average statewide pricefor urea the last two weeks ofOctober ($624 per ton)increased $21.17 per ton. Theaverage potash price ($644)was up $1.46, and the averageprice for diammonium phos-phate ($708) posted a slightincrease, according to the lat-est Illinois production costreport issued by the Depart-

ment of Agriculture.“As long as the grain mar-

ket stays strong, I think there

will be a lot of demand forfertilizer, which will helpsupport prices,” Dillier said.“At this point, nothing sug-gests prices will come downa lot between now andspring.”

Anhydrous ammonia pricesin Illinois as of Oct. 27 rangedfrom $820 to $900 per ton,which was $2 off the averageof about $850 from the firsthalf of October.

‘We’ve got a lot of anhydrous sold for the fall, sowe’ve got a lot in front of us to move.’

— Joe DillierGROWMARK director of plant food

Milk price pulls back in OctoberThe Class III price for milk adjusted to 3.5 percent butterfat

for the month of October was $18.03 per hundredweight,$1.04 lower than the previous month.

It also marks more than a $3.60 drop in the past twomonths.

Dairy cows have done an excellent job bouncing back fromthe summer heat, and are producing well on this year’s newlyharvested silage and corn. As a result, higher milk productionis pressuring prices.

Page 15: FarmWeek November 7 2011

PROFITABILITY

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CASH STRATEGISTCorn Strategy

ü2011 crop: Leave an orderto sell another 10 percent ifDecember reaches $6.70.Hedge-to-arrive (HTA) salesfor late winter/spring deliveryare still the best tool for salesof farm-stored grain. Chang-ing spread relationships mayhave diminished returns forcommercial storage. If so,plan sales around tax consid-erations.

ü2012 crop: Use rallies to$6.15 on December 2012futures for catch-up sales. Wemay add another increment atthat level. Check the Hotlinefrequently.

vFundamentals: Doubtsabout the crop size supportthe market, even as the situa-tion in Europe and the impactit is having on the dollar keepsa lid on prices. The USDAreport Wednesday will give thetrade a clear picture of supply.But just as important may bethe demand side of the equa-tion. China is talking withArgentina to supply some ofits corn needs. The Ukraine isstill undercutting our prices.And feed wheat continues tosell at a huge discount to cornin the world.

Soybean Strategyü2011 crop: European

financial uncertainty continuesto support the dollar, draggingsoybean prices lower. Still, weprefer to be patient with mak-ing catch-up sales or adding tothem. Use a move to $12.80on January futures for catch-up sales, and one to $12.95 tosell another 10 percent. AHTA for winter/spring deliv-ery may pay if you store soy-beans on the farm. Commer-cial storage is a closer call.

ü2012 crop: Wait for a rallyto $12.50 on November 2012futures for catch-up sales. Wemay add to them at that level;check the Hotline.

vFundamentals: Soy-bean export sales continue toremain slow, but we are start-ing to hear reports of Chinesebusiness. South Americansupplies should be sold out.But if U.S. sales don’t begin toaccelerate soon, more burdenwill be put on the need for aSouth American crop prob-lem to rally prices. Planting isoff to a good start with Brazil

58 percent complete andArgentina 12 percent com-plete.

Wheat Strategyü2011 crop: The trend in

wheat remains choppy due tofinancial market influences.Make catch-up sales if ChicagoDecember futures trade near$6.50. We may sell another 20percent if December reboundsnear $6.70; check the Hotlinedaily. The carry in futures stillpays for commercial storage,making a HTA contract forwinter or spring delivery thebest tool.

ü2012 crop: Plan on mak-ing an initial 20 percent sale if

Chicago July 2012 trades near$7.35.

vFundamentals: Onceagain, the forex and financialmarkets continue to dominatethe trade’s attention. The fateof the European plan toresolve debt and bankingproblems is still uncertain,making forex and financialmarkets very volatile. Wheatfundamentals have notchanged; the trade continuesto battle strong export compe-tition. Our weekly sales arestill lackluster. Meanwhile,modest rain/snow continuesto slowly improve conditionsin the Great Plains.

Cents per bu.

Price cycles provide road map

Page 15 Monday, November 7, 2011 FarmWeek

can “invert,” put in a top whenthey should be putting in a bot-tom. The CRB Index is espe-cially interesting in that the lasttwo tops fit better with the tim-ing of highs than any of thelows. And corn prices were ata high point this past summerwhen they should have beenputting in a mid-cycle low. Theinflux of trading money in thelast five years may have causedsome cycle distortions.

But the dollar has been rela-tively consistent in recent years.And both the 3-year cycle andtrading pattern tend to pointhigher over the next few monthsand that should be somewhatnegative to commodity prices.

Even though price cyclesare variable and sometimesfraught with changing countsand patterns, they still offerclues as to how the future mayunfold. The long-term cycles,shown here, have a 10 percent“window of opportunity,” i.e.their lows can be 10 percent,or slightly more, early or late.On the 5-year corn cycle, that’sas much as six months.

And sometimes the cycles

Page 16: FarmWeek November 7 2011

As a Roseville farmwife, motherof three grown boys, and a Cook

County native, I willbe communicating onan ongoing basiswith 10 Chicago-areamothers. Thesewomen, who are partof the “field moms”program, have ques-tions about how their

food is produced.They will have a chance to meet

with farmers, tour farms, and havetheir questions answered by the peoplewho are responsible for growing theirfood. They will then be sharing theirexperience through social media.

pERspEcTIvEs

FarmWeek Page 16 Monday, November 7, 2011

It’s time farmers opened doors to consumers

DEB MOORE

LETTER­­TO­THE­EDITOR

No United States of Europe creates problemsThe biggest threat to our economy

these days comes from Europe. TheGreek government borrowed a lot ofmoney that it cannot repay. If Greecedefaults, the resulting financial crisis

could plunge theworld back into reces-sion.

One of the reasonsfor the crisis is thatEurope is caught inbetween. Europeancountries aren’t inde-pendent. But there isno “United States ofEurope.”

There is a United States of Ameri-ca, so let’s make a comparison.

Suppose Indiana had made thesame bad choices as Greece. Supposethe state ran huge budget deficits andborrowed a great deal of money forno productive purpose. Then one daylenders realize that Indiana can’trepay, and they stop renewing itsloans.

Very quickly Indiana would stoprunning a deficit. It would cut spend-ing and lay off workers. It would raisetaxes. This would create hardships fortaxpayers, public employees, andbusiness people who sell productsand services to the government.

But Social Security paymentswould continue. So would Medicare,Medicaid, and federal welfare. Ourfederal safety net would beuntouched. This would support oureconomy and ease our hardships.

There is no European safety netfor the people of Greece. Greek pen-sions and medical care are funded bythe Greek government’s budget. Thebudget-balancing threatens people’shealth care and income security. Nowonder there are demonstrations andriots.

Suppose Indiana’s economy

LARRY DEBOER

dropped into recession while the restof the country was doing fine. Unem-ployed people in Indiana could leavethe state in search of jobs. Unem-ployment in Indiana would drop,reducing the economic hardships onmigrants and remaining residents.

For the most part, the EuropeanUnion allows free labor movementamong its member countries. Unem-ployed Greeks can migrate to Ger-many in search of work.

But Greeks speak Greek and Ger-mans speak German. The languagebarrier is one reason that labormobility in Europe is not what it is inthe United States. This is one reasonthat unemployment in Greece stayshigh.

Now suppose that Greece was anindependent country with its owncurrency, the drachma. The economiccrisis would cause the exchange rateof the drachma to fall, so each dollarwould buy more drachmas. Thiswould reduce the cost of visitingGreece. Tourism would boom.

But Greece uses the Europeaneuro. So does Germany. Germany isone of the world’s biggest exporters.To buy German exports, nationsmust exchange their own currenciesfor euros. This keeps the demand forthe euro high, so its value stays high.

The economic troubles of littleGreece don’t have much effect on theeuro’s value. There is no tourismboom in Greece because Germanydoesn’t need a low-valued euro to sellits exports.

An independent Greece could usemonetary policy to stimulate its econ-omy. The Greek central bank couldincrease the supply of drachmas,reduce interest rates, and encourageborrowing and spending. This wouldhelp the economy recover.

There is no Greek monetary policybecause there is no drachma. TheEuropean Central Bank sets mone-tary policy for Europe, based on theneeds of the entire continent.

Greece may be in recession, butGermany isn’t, and Germany is amuch bigger economy. The bankdoesn’t expand the money supply tomatch the needs of Greece.

Further, had Greece been inde-pendent, lenders would have consid-ered the possibility of drachmaexchange devaluation or monetaryinflation. Both risks would have dis-couraged lending to Greece. Lenderswouldn’t want to be earning interestin drachma if the currency’s valuecould fall.

The scale of the Greek crisismight have been smaller. ButGreece has the euro, and lendersknew that Germany wouldn’t allow

much devaluation or inflation.The European financial crisis is

partly the result of the in betweeneconomic integration of Europe. It’snot a United States of Europe. Thereis no continentwide safety net, andcultural barriers inhibit labor mobili-ty. Its members aren’t independentcountries, either. They don’t havetheir own currencies so they can’tadopt independent exchange or mon-etary policies.

Europe will have to come up witha plan to prevent a more severe crisis.That may be a step toward moreEuropean integration. If the planbreaks down, though, the alternativemight be European dis-integration.

Larry DeBoer is a professor of agricul-tural economics at Purdue University, WestLafayette, Ind. His e-mail address is [email protected].

Agriculture is scienceEditor:

I just read the letter from Billy Fair-less concerning agriculture teachersteaching science class. I had to writebecause he seems to be missing a keypoint.

Agriculture is science. We can-

not farm without science. We can-not teach agriculture without sci-ence. My concern with the issue is,do we have enough agricultureteachers to meet the growingdemand for people educated in agri-culture?DAVID B. RAHE,Hillsboro

Keeping the euro propped up

The agriculture community needsto be concerned with what con-sumers are thinking and seeing aboutagriculture. They’re the people forwhom we’re growing food, and we

need to be listening to them.Illinois Farm Families (IFF) is

connecting consumers with farmers.IFF coordinates events that bringthe field moms out to farms so theycan share what they have learnedwith consumers through video clips,photo albums, blog posts, and othermedia.

To begin with, farm moms havebeen relating to these young moms.They are powerful consumers whenit comes to food choices. They arethe ones who are making decisionson what to buy at the grocery store.They also are the ones who arepreparing the meals for their fami-lies.

It is important that farmers openup their doors to have these conver-sations with consumers. Researchtells us that most consumers feel asthough farmers are hardworking,honest, and trustworthy.

But while they trust us, more thanhalf don’t believe we will do theright thing when it comes tospecifics such as using fewer chemi-cals, treating our animals properly,

and protecting the environment.These concerns leave consumerslooking for answers.

Unfortunately, farmers have beenabsent from the conversation.

Rather than talking with us, con-sumers have been getting theirinformation from talk shows, web-sites, the media, and, of course, oth-er moms. Everyone except us, thepeople who grow and raise theirfood.

Farmers are great at speaking upfor agriculture to other farmers, agmedia, and politicians. Now it istime to speak directly to con-sumers, our customers, and answertheir questions.

They are willing to listen. It istime to set the story straight aboutwhat is actually taking place on ourfarms. It is time for everyone toget involved on some level to letconsumers know what we do on thefarm and how we raise their food.

Deb Moore is this year’s hostess of theIllinois Farm Families field moms pro-gram.