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Monday, April 30, 2012 Two sections Volume 40, No. 18

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

AN AvERAgE hAy CROpappea r s to be i n the mak ing ,according to the president of theIllinois Beef Association. ............10

LANDOWNER protectionssought by Illinois Farm Bureau areincluded in an Il l inois Senate-passed “fracking” bill. ....................3

IT’S STILL UNCERTAINhow much damage frost caused tothe tree fruit crops across Centraland Northern Illinois. ..................2

DOL to pull controversial labor proposalsBY MARTIN ROSSFarmWeek

In withdrawing proposednew ag child labor guidelines,the U.S. Department of Labor(DOL) has reached “the rightdecision for our nation’s fami-ly-based agriculture system,”American Farm Bureau Presi-dent Bob Stallman said lastweek.

Late in the week, DOLannounced plans to pull con-troversial proposals thatwould have tightened restric-tions on “hazardous occupa-tions” that can be performedby teens or children.

Farm Bureau had workedhard to kill the proposal.

Farmers had feared newrules would severely limitfarm activities, ag educationalopportunities, or even non-agjobs for young people on thefarm or agribusiness.

Ag groups charged the planwould have reinterpretedDOL’s exemption for choresperformed by farm familymembers, potentially blockingminors from working on agrandparent’s or uncle’s farm.

DOL indicated it wouldcontinue to exempt children onfarms owned or operated bytheir parents, even if their farm

is invaluable to someone work-ing in this arena.

“This shows the ability offarmers to ensure safety ontheir farms without broad,sweeping federal intervention.”

Stallman, meanwhile,pledged to continue workingwith USDA, DOL, and other“rural stakeholders” to devel-op a program to promotesafer ag working practices.

is part of a family partnershipor corporate agreement.

Stallman argued DOL’sdecision to withdraw new rules“would not have happenedwithout the efforts of Sen. Jer-ry Moran (R-Kan.), Rep. Den-ny Rehberg (R-Mont.) and oth-ers in Congress.”

Rep. Tom Latham (R-Iowa)had garnered 61 co-sponsorsfor his Preserving America’sFamily Farm Act, which soughtto block new restrictions.

Moran and Sen. John Thune(R-S.D.) had recruited 44 co-sponsors, including HighlandPark Republican Sen. MarkKirk, for their companion bill.

In addition, Farm Bureauwas armed with a new USDAstudy charting improved juve-nile safety on the farm.According to the report, on-farm, ag-related injuries amongindividuals under 20 haddropped from 13.5 injuries per1,000 farms in 2001 to 7.2 per1,000 farms in 2009 — a 54percent reduction.

“I think this speaks to theawareness of farmers andranchers of the risks involvedin agriculture, in ensuring

youth are working on tasksthat are age-appropriate andare trained,” AFBF labor spe-cialist Kristi Boswell toldFarmWeek.

“That firsthand experience

A ‘PEAS FULL’ SPRING

Mason County Farm Bureau President Randy Fornoff inspects the blossoms in his field of peas that start-ed blooming last week. Fornoff and his brother, Doug, farm near Havana and expect to harvest thiscrop, which is grown under contract for Del Monte, in mid- to late May. (Photo by Dee Dee Gellerman,Mason County Farm Bureau manager)

As the U.S. Senate Ag Committee lastweek OK’d farm program proposals thatwould put more safety net weight on cropinsurance, the activist Environmental Work-ing Group (EWG) proposed strip-ping the insurance net to its basics.

Various commodity groupsoffered mixed reviews for the agcommittee’s newly approved 2012farm bill blueprint, which wouldeliminate future farm direct paymentsand replace current countercyclical and AverageCrop Revenue Election (ACRE) programs witha new “shallow-loss” farm revenue programand a special program for cotton producers.

The committee “markup” targets roughly$26 billion in ag spending cuts over the next10 years, in line with levels supported by theAmerican Farm Bureau Federation (AFBF).

In an RFD Radio/FarmWeek inter-view, farm policy specialist Mary Kay

Thatcher called committee approval “areally positive step” toward final farm billpassage — ideally by August.

Thatcher nonetheless is closely watchingthe House Ag Com-mittee, which wasconducting ag hear-ings last week. Givencontroversy overnutrition programs,

conservation, and otherfarm bill issues, Senate Majority LeaderHarry Reid (D-Nevada) may be reluctant to“take tough, controversial votes on theSenate floor” if House Ag CommitteeChairman Frank Lucas (D-Okla.) appearshesitant to move his own plan, she suggest-ed.

Lucas argued “we’ve got a lot of workahead of us,” emphasizing the need for acomprehensive bill that will address concerns

across “all regions and all commodities.”Thatcher also is concerned about the full

House adhering to a $23 billion threshold forcuts, given recent proposals to slash $33 billionin long-term savings from nutrition alone.

The Senate bill would maintain the currentstructure of and funding for the federal cropinsurance program, as well as preserving exist-ing crop insurance premium subsidies.

The committee also proposes a numberof small improvements to the system,including a new Supplemental CoverageOption that would enable growers to stack acounty-level revenue program on top oflower-level individual coverage guarantees.

Senate action followed on the heels ofan EWG report proposing to pull furthersavings from crop insurance.

The study’s author, Iowa State Universityag economist Bruce Babcock, proposes

See Senate, page 4

Economist refutes ‘free’ insurance proposal

Committee OKs farm bill plan

FarmWeekNow.comTo listen to RFD Radio Networkreports on the latest farm billdevelopments, go to Farm-WeekNow.com.

CORPS CARP FUNDING — U.S. Sen. DickDurbin, a Springfield Democrat, announced SenateAppropriations Committee approval of $27.5 millionDurbin sought to aid U.S. Army Corps of Engineersefforts to prevent the spread of invasive species, includ-ing Asian carp, between the Mississippi River Basin andthe Great Lakes.

Funding was included in the Senate AppropriationsCommittee’s fiscal 2013 energy and water developmentspending bill, which now awaits action by the full Senate.

“Thousands of people in the tourism and fishingindustries rely on a healthy Great Lakes ecosystem fortheir livelihood,” Durbin said. “Asian carp is the No. 1threat to their way of life.

“With so much at stake, we need to do everything wecan to stop this invasive species. This bill takes a com-prehensive look at the problem and authorizes and fundsseveral different strategies to address it.”

FFA ONLINE TV CHANNEL — The NationalFFA Organization is developing its own online TV chan-nel on the iHigh.com platform after the successful livebroadcast of its 2011 national convention. More than53,000 people attended the convention and an additional550,000 viewers watched portions of it via the onlinechannel.

The FFA channel will use the latest in web technologyto reach its more than a half-million student membersacross the United States, Puerto Rico, and the VirginIslands.

FFA has entered into a licensing agreement with All-tech, which will allow some personalization for state andlocal chapters.

Each state chapter will have its own site that may beused to highlight awards banquets and other specialevents. All sites will have the ability to generate revenuefor the organizations.

MARKET SENSITIVITY — The market for foodsmade for consumers with food allergies is set to drastical-ly increase as more and more people are showing signs offood intolerances. According to the “Food Allergy andIntolerance Products — Global Strategic BusinessReport,” U.S. sensitivities and allergies to food grew 18.5percent in the last decade.

The report also says growing consumer preference forwheat-free and gluten-free diets is heavily weighing intothe growing market. It points out consumer demand forlactose-free products as a rising growth segment. Between35 million and 50 million Americans are lactose intoler-ant, causing food companies to capitalize on the marketwith a wide range of dairy-free products.

The report also points out that better diagnosis ofallergies, improved labeling regulations, and enhancedtaste of specialty foods also are major contributors to thegrowing market.

FarmWeek Page 2 Monday, April 30, 2012

(ISSN0197-6680)

Vol. 40 No. 19 April 30, 2012

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

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© 2012 Illinois Agricultural Association

STAFFEditorDave McClelland (dmcclelland@ilfb.org)

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Quick TakesSTATE

Frost damage of fruit cropvaries among varieties, trees BY KAY SHIPMANFarmWeek

The jury is still out about the amount ofdamage done by frost to the tree fruit cropsacross Central and Northern Illinois.

Although some damage is evident, twoorchard owners told FarmWeek they still didnot know how much of their crops will emergeunscathed after a frost the sec-ond week of April.

“When it (spring) comes amonth early, you cross your fin-gers,” said Joe Moran, owner ofMoran’s Orchard, near Trilla inColes county.

Variability is the watchword. Different varieties of apples

are more susceptible to coldthan others. In part, it dependson when each variety blooms.

Frost damage also varieddepending on whether the fruitwas growing higher or lower onthe tree, if the tree was locatedon higher ground or flat or lowground, and if there were factors, such as a lake,that caused air movement.

“I have a good crop of peaches on highground. My peaches on flat ground, the treesare bare,” Moran said. He speculated he mayhave lost half his crop.

Moran’s Orchard raises 10 varieties ofpeaches on about 8 acres. The orchard alsoproduces 20 varieties of apples on 25 acres.The orchard also raises plums and pears.

Moran said he was not sure about his

apple crop’s fate.In Peoria County’s Christ Orchard near

Elmwood, the situation is similar, according toowner Kurt Christ. Christ Orchard raises apri-cots, plums, and 50 varieties of apples on 20acres. The Christ family also operates a grainfarm.

Christ said he had talked with fellow grow-ers and suppliers around thestate and region, and he specu-lated the frost has cut the fruitcrop yield in the northern two-thirds of the state.

Unlike other types of cropsthat can put on additionalblooms, fruit trees bloom onceand that determines the yieldfor that year, Christ and Morannoted.

“It (crop damage) was just sovariable, depending on howcold it got,” Christ said. “I’venever seen so much variability.”

The Christ Orchard has lakes,and the water helped with air

movement. Near the lake, the fruit on oneplum variety looks perfect, while another vari-ety away from the lake didn’t fare well.

Some apple trees have lost nearly all theirapples, while the crop looks good on trees thathad some protection.

Christ also said he believes he will have afruit crop, but did not know yet what portionmay be damaged.

“The way this (crop) looks now, either it’s ago or a no go,” he said.

Cimeron Frost, Tallula,recently has been named

interim exec-utive vicepresident ofthe IllinoisBeef Associ-ation (IBA).

He suc-ceeds Mar-alee Johnson,who passed

away in March after workingfor IBA 23 years, includingthe last 13 as executive vicepresident.

Frost was appointed toserve on the committee thatcreated the Illinois BeefExpo in 1986.

In 1989, he was elected tothe IBA Board of Directorsand subsequently was electedvice president.

He was hired as IBA’s vicepresident of member servic-es in 1994 and in 2001 wasnamed director of industryprograms.

Frost and his wife, Rachel,own a purebred and commer-cial cattle operation in Cen-tral Illinois.

They have five grown chil-dren and three grandchil-dren.

‘ T h e way t h i s(crop) looks noweither it’s a go ora no go.’

—Kurt ChristPeoria Countyorchard owner

Frost named interim executive VP of IBA

Cimeron Frost

STATE

Page 3 Monday, April 30, 2012 FarmWeek

Some legislative concerns addressed, others remain

Sometimes, it’s a clear call.Sometimes, sending an ambu-lance on an apparently “rou-tine” run can turn out to be ajudgment call.

Filtering “inappropriaterequests” for ambulance serv-ice can be dicey business.Southern Illinois University(SIU) graduate assistant Lind-say Knaus, who has studiedrural health care access issues,told FarmWeek non-emer-gency use of emergency serv-ices often is a low-incomeresponse to limited trans-portation resources.

But Knaus also recognizesthe dilemma facing emergencyservice agencies (EMS), espe-cially “when you haveMedicare and Medicaid in Illi-nois not clearly defining whatmisuse or inappropriate use ofambulance service is.”

The patient faces no conse-quence even for consciouslyimproper use of ambulanceservices, but the EMSprovider could be subject topenalties if Medicaid officialseventually audit past reim-bursements, she said.

“Wisconsin has activelyworked with Medicaid and

Medicare to define misuse ofambulance services,” Knausrelated. “When people arebilling, they know what con-stitutes an emergency. I thinkthe biggest need right now isdefining misuse of services —when you can call and whenyou cannot. And we have toeducate people about whatambulance services are forand about alternatives.”

In Jackson County, onecaller repeatedly requestedambulance service for a rideto work. “Lifting assistance”for elderly or disabled resi-dents is “pretty common,”said Fulton County Emer-gency Medical Associationexecutive director and emer-gency medical technician(EMT) Andrew Thornton.

In some counties, ambu-lance services essentially can-not reject non-emergencycalls, SIU Rural MedicalTransportation Network rep-resentative Jenna Jamiesonsaid. Thornton argues no Illi-nois ambulance service likelywould refuse a call, but onceon the scene, a paramedic canrefuse to transport a victim tothe hospital. That isn’t likely

to happen, he said.“What would you rather

do: run this person to thehospital who doesn’t need togo and eat their ambulancebill, or get sued for thousandsof dollars?” he posed.

In Fulton County, emer-gency agencies have devel-oped a 9-1-1 protocol fordetermining when an ambu-lance is dispatched.

A series of operator ques-tions can clarify whether acaller’s toothache is a non-critical issue or a symptom ofa serious condition — as itwas in a case fielded byThornton where dental dis-comfort preceded a heartattack.

“A car accident couldrequire a response frompolice, fire, and EMS if a haz-ardous material or a fire andthe need for (victim) extrica-tion is involved,” he toldFarmWeek.

Beyond public transitoptions, registered nursesrather than ambulances canrespond to some calls fromrepeat ambulance callers,Jamieson added. — MartinRoss

Making the call: To run or not to run

BY MARTIN ROSSFarmWeek

When an accident occurson the farm or a rural road, anambulance that already hasbeen dispatched for a pre-scription errand or atoothache can mean the differ-ence between life and death.

That’s a challenge forSouthern Illinois emergencymedical service (EMS)providers who address acuteneeds across a vast territorywith limited resources.

A Southern Illinois Univer-sity (SIU) team is workingwith EMS-health providersand transit officials to stem“inappropriate requests” thatcan divert ambulances fromcritical calls.

The SIU Center for RuralHealth’s Rural Medical Trans-portation Network (RMTN)has focused on improvingEMS capabilities across Illi-nois’ 34 southernmost coun-ties.

An RMTN-supported EMSPatient Navigator Program hasexamined local and regionaltransportation options for res-idents who otherwise mightsummon an ambulance to pickup a prescription or for a doc-tor’s appointment or weeklymedical treatments.

RMTN receives IllinoisDepartment of Transporta-tion funding to develop pilotprograms aimed at movingresidents with more routine,non-critical health needs “outof the EMS system and intothe public transit system,”project participant JennaJamieson told FarmWeek at

last week’s Illinois RuralHealth Association conferencein Effingham.

RMTN works with multi-county shuttle services suchas Rides, South Central, andShawnee mass transit dis-tricts. The result has been“less stress on the EMS” inJackson, Union, and othercounties, said Jamieson, whohelped conduct a recent sur-vey of factors that impactemergency services.

While 84 percent of the28 EMS agencies thatresponded to the SIU surveydeemed inadequate fundingthe greatest threat to areaservices, inappropriaterequests also ranked high ontheir list.

Forty-nine percent of theEMS directors polled report-ed receiving more than 10questionable calls per month.White County responders,who cover a 500-square-milearea with a single ambulance,reported receiving an averageof 30.

Should a serious farmaccident occur while WhiteCounty’s lone ambulance isengaged on a non-emergencyrun, responders from a sur-rounding county may take aslong as 45 minutes to arriveon the scene, Jamieson said.

“The chances of (the vic-tim) being able to survive isvery, very low,” she warned.

RMTN also is involved ina Mobility Navigator Pro-gram that helps educate sen-iors and others on usingtransit services and educa-tional seminars for health

care providers. Emergencyspecialists at the IRHA con-ference reported some hospi-tals routinely use EMS serv-ices to transport patients fol-lowing their release.

And problems generatedby inappropriate requests arenot limited to more heavily

rural Southern Illinois coun-ties.

With a relatively well-equipped 25-vehicle fleet, St.Clair County is “not particu-larly lacking in ambulances atfirst glance,” Jamieson said.But the county has a popula-tion of about a half-million

(including East St. Louis), andambulances serve a 1,200-square-mile territory.

At the same time, Jamiesonnotes a continued decline involunteer, part-time, or paid“on-call” EMS providersacross the state’s southern tier,further straining resources.

‘Bad’ calls throw EMS services off their game

BY KAY SHIPMANFarmWeek

Illinois Farm Bureau last week madeprogress on some bills in the GeneralAssembly and continued to addressconcerns in others.

The Senate passed SB 3280, spon-sored by Sen. Michael Frerichs (D-Champaign), that would establish rulesfor hydraulic fracturing to extract natu-ral gas. Earlier, IFB, the oil and gasindustry, and environmental groupsagreed on language to address concernsabout fracturing, said Kevin Semlow,IFB director of state legislation.

Hydraulic fracturing, also known asfracking, is used to increase the flow ofoil or gas from a well and involvespumping liquids under high enoughpressure to fracture rock.

“This agreement provides thelandowner protections that IFB wasseeking while also providing a workablereporting process for the industry,”Semlow said.

An amendment to SB 3280 wasadded to require the reporting of thechemical ingredients used in hydraulicfracturing, require well integrity testing

and proper storage of hydraulic frac-turing fluids, establish a process for theindustry to protect trade-secret infor-mation — and provide a process toallow landowners and agricultural ten-ants to challenge trade-secret protec-tions if they have been affected andneed information about the chemi-cals used.

IFB also worked to addressconcerns about proposed under-ground carbon dioxide (CO2)storage legislation, spon-sored by Sen. JamesClayborne (D-Belleville).

IFB hasadamantlyopposed the pro-posed processthat wouldforce alllandownersto partici-pate in aCO2 storageproject ifonly 51 per-cent of

landowners sign up to participate. IFBstaff has discussed its concerns withWillow Grove Carbon Solutions and itsparent company.

In its current form, SB 3758 wouldremove a landowner’s due processprotection, and the legislation alsohas other unacceptable provisions,Semlow said. IFB opposes the bill.

An amendment to SB 3758 hasbeen discussed, but no detailshave been released. The poten-

tial also exists for a com-pletely new legislative

proposal, Semlow not-ed.

On wind energypolicy, proposedlegislation was

amended afternumerous dis-cussions withlandowners,

wind compa-nies, represen-tatives of

local govern-ments, andlegislators,

said Paul Cope, IFB assistant directorof state legislation. Frerichs also is thesponsor of SB 3271.

An introduced amendment wouldcreate construction and deconstructionprovisions only for commercial windenergy facilities, Cope said. Currently,SB 3271 is being held in the SenateAgriculture and Conservation Commit-tee. Bills dealing with wind energyissues have not been very successful inmoving through the legislative processthis year, Cope added.

Legislation addressing misuse ofslow-moving-vehicle (SMV) emblemscontinued moving in the Capitol.

HB 4598, sponsored by Rep. PatVerschoore (D-Milan) and Sen. DaveKoehler (D-Peoria) is in the Senate.

The legislation would increase thecurrent penalty from $25 to $75 forimproper usage of the emblems andexpand the definition of illegal beyonduse in a road right-of-way.

Under the bill, a slow-moving-vehi-cle emblem may be used only on ananimal-drawn vehicle, farm tractor,implement of husbandry, and certainspecial mobile equipment.

production

FarmWeek Page 4 Monday, April 30, 2012

Plan offers regional opportunities, working lands focusBY MARTIN ROSSFarmWeek

Senate-proposed conserva-tion provisions reportedlycould strengthen a federalfocus on working farmlands,foster new watershed partner-ships, and, according to oneWashington observer, helpkeep federal regulators at bay.

American Farm Bureau Fed-eration policy analyst Mary KayThatcher hailed the Senate AgCommittee for an “outstandingjob” of finding lower-impactbudget savings and buildingnew efficiencies into the farmbill conservation title. The planwould consolidate 23 currentconservation programs into 13

ity Incentives Program (EQIP). In the last farm bill, lawmak-

ers directed that 60 percent ofEQIP funding go to the live-stock sector, with another 5percent dedicated to wildlifehabitat incentives.

New in the Senate proposalis a proposed Regional Conser-vation Partnership Program(RCPP) that would encourage“priority partnerships” betweenfarmers and other stakeholderson a local or regional basis. TheRCPP would offer project fund-ing on a competitive merit basis.

A similar Cooperative Con-servation Partnership Initiative(CCPI) has been tapped toaddress nitrogen losses in the

Upper Salt Fork Watershed inChampaign County. The CCPIproject, involving producersand conservationists, hasincreased adoption of tech-niques to retain nitrogen fertil-izer on farmland.

The RCPP potentially couldenable states and local groupsto seek a federal boost forlocally coordinated projects,possibly on a watershed level.

Nitrogen runoff issues inthe Mississippi River Basin havespurred concerns about possi-ble Midwest nutrient manage-ment mandates similar to thosethe U.S. Environmental Protec-tion Agency has set for theeastern Chesapeake Bay.

key stewardship programs.Thatcher admitted “we knew

we had to take some cuts” —$6 billion in conservation fund-ing cuts over a 10-year periodunder the Senate Ag plan. Butshe argued a projected $6 bil-lion in largely program adminis-trative savings is preferable totapping “money that goes intoa farmer’s pocket” — i.e., con-servation payments and assis-tance.

“The vast majority of thecuts are coming by reducing thesize of the ConservationReserve Program (CRP) from32 million down to 25 millionacres over the next five years,”Thatcher said in an RFD

Radio-FarmWeek interview.“Given the way they’ve

drafted this bill, I suspect theland that will come out willlargely be land that probablynever should have been in theCRP anyway.

“I think farmers have beenreally adamant over the pastfew years that if we have totake money out of conserva-tion, it’s better if we take it outof the (land) retirement-typeprograms than out of theworking lands programs.”

Thatcher hailed the ag com-mittee’s commitment to main-taining a strong focus on live-stock water quality assistanceunder the Environmental Qual-

Continued from page 1eliminating federal crop insur-ance premium subsidies in favorof a “single, simple, and free”policy covering 70 percent ofaverage crop yield and compen-sating growers at 100 percent ofa crop’s market price.

The report charged premiumsubsidies offer growers “irre-sistible incentives to buy moreinsurance, and more expensivetypes of insurance, than theywould buy if they had to spendtheir own money.”

U of I economist GarySchnitkey argues premium sub-sidization, in fact, was designedto encourage purchase of higheryield or revenue “buy up” cover-ages that provide greater pro-duction and/or price protection.

Schnitkey fears the EWGplan would set back progress incrop insurance participation andhobble risk management effec-tiveness, particularly in the Mid-west.

“At the 70 percent insurancelevel, there are next to no (loss)payments in Illinois,” Schnitkeytold FarmWeek. “You’d be tak-ing a big program and making itpretty much ineffective for anysort of Midwest crop.

“We find that, basically, ifyou had a 70 percent yield insur-ance policy, the expected (loss)payments on that policy wouldbe somewhere from 60 cents tosomewhere closer to $4.80 inSouthern Illinois. It’s a very,very low coverage. You’d bedramatically changing that pro-gram — you’re cutting it dra-matically in size and scope.”

Thatcher noted the Senateplan would install a new “three-legged stool” of farmer protec-tions — continued commoditymarketing loans, a stronger cropinsurance program, and a newAgriculture Risk Coverage(ARC) program that wouldassist eligible producers wholose 11 to 21 percent of their

last five-years’ average revenue.The program would create a

new eligibility base based on agrower’s 2009-2012 averagetotal planted acres. Participantswould not be tied to a specificcommodity.

“I could have an average of400 wheat acres and 600 cornacres over the last four years,and, therefore, my total eligibleacres would be 1,000,” Thatch-er explained.

“I could plant whatever Iwanted on that 1,000 acres —corn, beans, wheat, rice, youname it. I could plant more thanthat 1,000 acres, but I would notbe eligible for support under theARC shallow loss program.”

Cotton producers couldenroll in a separate program —the Stacked Income ProtectionPlan. That proposal could gen-erate some contentious debate:Thatcher noted continuedBrazilian concerns about U.S.cotton-specific supports.

Groups attack GMO herbicide-tolerant corn

A campaign against what activist groups have dubbed“Agent Orange Corn” is part of a general sustained attackon ag biotechnology and ignores current interagency regu-latory safeguards, according to a Farm Bureau biotech spe-cialist.

Consumer and other groups have urged U.S. Ag Secre-tary Tom Vilsack to shut down Dow AgroSciences’ applica-tion for regulatory approval of “Enlist” — a prospectiveGMO corn product with built-in 2,4-D herbicide tolerance.

Dow seeks to market Enlist corn, soybean, and cottonvarieties that possess dual tolerance to 2,4-D andglyphosate herbicides along with a new herbicide aimed atfighting weeds that have become resistant to standardglyphosate herbicides.

Opponents argue the products together would lead toa major increase in the volume of chemicals sprayed inthe U.S., damaging nearby crops, spurring increasedweed resistance, and possibly contributing to healthissues.

An article on the Huffington Post website last weekheadlined concerns about “Agent Orange Corn,” attempt-ing to tie ag 2,4-D use to use of jungle defoliants that con-tained the compound in the Vietnam conflict. The U.S.Environmental Protection Agency (EPA) recentlyannounced it was not pursuing further review of 2,4-D’sherbicide registration.

Dow officials argued its new products are safe and havebeen extensively tested. “This is going to be a solution thatwe are looking forward to bringing to farmers,” said JoeVertin, Dow’s global business leader for Enlist.

American Farm Bureau Federation biotech specialist KevinRichards noted the Enlist trait “has been in the (development)pipeline for quite some time.” Dow has worked “in closecoordination and communication with a whole host of stake-holders, both on the biotech side and on the herbicide side,”Richards told FarmWeek.

He said he sees no indication Dow is considering any“wholesale replacement” of glyphosate/Roundup-resistantvarieties with Enlist-trait corn. Instead, Enlist likely willserve as one more trait in “stacked” corn varieties devel-oped to resist a number of crop pressures, he said.

“Farmers then would have several different modes ofaction to knock down weeds and to deal with resistance,”Richards maintained.

According to Richards, 2,4-D remains a “relatively morelimited-use herbicide.” EPA exhaustively reviewed “all theavailable science and evidence” in determining not to pur-sue further 2,4-D investigation, and its decision “reinforcesthat we have good scientists doing good work in the regula-tory agencies,” he said.

“The plant risk and environmental assessments thatcame out of (USDA) specific to the biotech trait reinforcesthat we have good, robust, thorough reviews going onwithin the regulatory framework,” Richards said. — Mar-tin Ross

As renewed BSE concerns reminded U.S.livestock farmers of the potential costs of ani-mal disease (see page 6), the U.S. Senate AgCommittee approved 2012 farm bill provisionsthat would look at protecting hog producers inthe event of foreign market disruptions.

Noting the U.S. pork industry’s expandingglobal footprint, Sen. Amy Klobuchar (D-Minn.) won inclusion of an amendment thatseeks USDA study of the feasibility of and pos-sible structure of swine catastrophic risk man-agement insurance to cover input costs lostbecause of an animal disease or event thatslows or halts U.S. pork exports. The amend-ment was cosponsored by Sen. Charles Grassley(R-Iowa).

In 2011, the U.S. pork industry exportedmore than $6 billion in product, accountingfor roughly 27 percent of its total productionand reportedly supporting more than 50,000jobs.

Foreign sales had dropped significantly in2009 after 16 years of record exports becauseof an outbreak of the H1N1 flu virus inhumans and associated publicity regarding theso-called “swine flu.”

“We need a program that will protect pro-

ducers from another H1N1 situation,” NationalPork Producers Council President R.C. Huntsaid. “The increased presence of disease, alongwith increasing international travel and tradethat move diseases around the world, have cre-ated an unprecedented risk to the U.S. porkindustry.

“Producers need risk-management tools thatcan protect them should our export marketsclose. We applaud Senators Klobuchar andGrassley for supporting our industry and help-ing to ensure our jobs are not jeopardized.”

USDA already has a pilot insurance programfor hog producers called Livestock Gross Mar-gin (LGM), but it has a $3 million limit onspending that restricts the number of pigs anyone farmer can insure. Further, the programcurrently is available to producers only for a six-month period.

At the same time, the National Cattlemen’sBeef Association (NCBA) seeks new “privateenterprise alternatives” for protecting against itsown production-market risks. However, “at thispoint, we’re leaving it to the pork folks” to pur-sue farm bill risk management options, NCBAWashington spokesman Mike Deering toldFarmWeek. — Martin Ross

Pork producers hail risk study measure

Senate

production

Page 5 Monday, April 30, 2012 FarmWeek

Majority of state’s corn crop in the ground BY DANIEL GRANTFarmWeek

A majority of the Illinoiscorn crop is in the ground asplanting progress continued ata rapid pace last week.

Farmers statewide hadplanted 59 percent of thecorn crop as of the first oflast week, compared to just 10percent at the same time lastyear and the five-year averageof 17 percent. That figure nodoubt will be higher when thenew estimate comes out today(Monday).

Larry Hummel, aFarmWeek Cropwatcherfrom Lee County in NorthernIllinois, late last week pre-pared to switch from plantingcorn to soybeans.

“We’ve got about 60 per-cent of our corn planted,”Hummel said on Thursday.“We haven’t planted any soy-beans yet, but we’ll probablystart in another day or so.”

Full reports from Crop-watchers will return to

was growing out of any linger-ing frost injuries.

“There’s a field near methat was planted in March thathas been frosted at least threetimes,” he added. “It’s stillfighting and still is green. Ithink everything will be fine.”

Regionally, corn plantingas of the first of last weekwas 80 percent complete inthe west-southwest portionof the state compared to62 percent Central Illinoisand 30 percent in thenorthwest.

FarmWeek next week inthe May 7 issue.

Hummel noted some farm-ers who held off planting inprevious weeks due to eithercold or dry soils opened upthe throttle last week.

Research at the Universityof Illinois suggests farmerscan plant soybeans now with-out much concern about los-ing yields. In fact, some of thetop soybean yields the pasttwo years were from fieldsplanted in mid-April.

“We now have evidencethat waiting until some date inMay to plant soybeans maynot be necessary or even help-ful to yields,” said EmersonNafziger, U of I crop systemsspecialist.

And, on the flipside, soy-bean yields can take a hit iffarmers wait too long to plant.U of I research showed a yieldloss of about three to fourtenths of a bushel for eachday soybeans are not plantedafter mid- to late May.

Farmers should, however,hold off planting soybeansuntil the soil warms up infields with a history of suddendeath syndrome (SDS).

SDS does the most damageto susceptible varieties thatare planted into cool soils,according to Carl Bradley, Uof I plant pathologist.

“In fields where SDS hasbeen a historical problem, it isbest to plant soybean varietiesthat have a high level ofresistance to SDS,” Bradleysaid. “In addition, considerplanting these fields with ahistory of SDS last.”

Illinois farmers as of thefirst of last week had planted5 percent of the soybean cropcompared to 1 percent a yearago and the five-year averageof 1 percent.

Oat planting last week was97 percent complete com-pared to the average of 65percent.

Hummel said the majorityof the corn crop in his area

Farmers receiving a share of ConservationReserve Program (CRP) annual payments needto remember there are several compliance andmaintenance actions that they must follow tocomply with their CRP contracts.

What followsis a brief list;however, in allcases, contactyour FSA countyoffice to ensureany plannedactions are with-in the allowable

action of your contract and approved conserva-tion plan of operation (CPO).

Participants must:• Comply with the terms of the approved

conservation plan of operation for the CRPacreage. If you don’t have a copy of your plan,you may obtain it from the county office wherethe records are kept.

• Not harvest, sell, or otherwise make com-mercial use of trees, forage, or other cover onthe CRP acres, including the shaping of treesfor future use as Christmas trees. However, andsubject to prior county committee approval,CRP participants may make commercial use offorest refuse resulting from customary forestryactivities included in the CPO, such as pruning,thinning, or timber stand improvement.

• Not plant an unauthorized crop, such as anagricultural commodity, on CRP acreage;

• Not disturb the acreage during the primarynesting and brood-rearing season for wildlife.In Illinois, this is April 15 through Aug. 1. Thisalso is the period when mowing is not allowedunless prior approval is granted for spot controlof certain noxious weeds.

• Not hay or graze CRP acreage without pri-or FSA approval from the servicing countyoffice. Also, haying or grazing will be author-

ized only from Aug. 2 through Sept. 30, but isgenerally only authorized on the same acreageonce in three years, has a 25 percent paymentreduction assessed, and is not allowed on allCRP practices, such as waterways and filterstrips may not be hayed or grazed.

• Perform periodic management activities asdescribed in the conservation plan of opera-tion. As these activities are planned at the timeof contract enrollment for future implementa-tion, conditions outside the participants’ con-trol, such as adverse weather conditions orfavorable weather conditions, could cause theseactivities to be needed sooner (adverse weather)or not needed at all (favorable weather). Forplan changes, contact FSA or the servicing Nat-ural Resources Conservation Service office.

• Notify FSA immediately should control orshares of CRP contracts change. This could bethe result of a land sale, death of participant, orchange in ownership structure, such as from anindividual to a trust.

Some activities are allowed on CRP acreageas long as they don’t otherwise defeat the pur-poses of the CRP contract. An example of apermissible activity would be hunting if it doesnot disturb the CRP ground. An example of anactivity not permitted would be operating anATV park or other recreational activity.

Another common compliance problemwould be constructing a house on CRP acreage.This would be a contract violation that wouldresult in contract termination and requirerefunds of payments received plus interest andliquidated damage assessments.

If you plan to build on or otherwise alteracreage that is enrolled in CRP, contact yourFSA office to remove that portion of the landand repay money on only that part prior tobreaking ground on the CRP acreage.

For more advice on what is and is not permit-ted on CRP acres, contact your local FSA office.

FSA reminds producersabout CRP compliance

Dan England, rural Maquon (Knox County), looks over turnips that heplanted with annual ryegrass as a cover crop before planting this fieldto corn. The field, which was planted to wheat last year, is adjacent to afield where England had just finished planting corn. This was the firstyear England planted turnips as a cover crop. The crop was planted af-ter a manure application (England has hogs). “Turnips are a deep-root-ing crop that helps sequester nutrients,” he said. He plans to do anothercover crop combination this year, with annual ryegrass, tillage radish,and clover. He finished planting his corn on Tuesday and started plant-ing his 880 acres of soybeans on Friday. (Photo by Ken Kashian)

U of I Plant Clinicopen for business

The University of Illinois Plant Clinic has resumed regularbusiness hours, 8 a.m. to noon and 1 to 4:30 p.m. week days.Samples already have started arriving this spring.

Unusually warm weather has prompted early field work,growth, and observations of pest issues, said Suzanne Bisson-nette, plant diagnostic clinic and integrated pest managementcoordinator.

Clinic services include plant and insect identification, diag-nosis of disease, insect, weed and chemical injury (chemicalinjury on field crops only), nematode assays, and help withnutrient-related problems, as well as recommendations.

Many samples may be diagnosed within a day or two,although if culturing is necessary, a final reading may not beavailable for up to two weeks. Nematode processing alsorequires about one to two weeks, depending on the procedure.Final diagnoses and invoices are sent via U.S. mail and e-mail.

For additional details on sampling, sample forms, fees, andservices offered, refer to the clinic website, {http://web.exten-sion.illinois.edu/plantclinic/}.

For questions about what, where, or how to sample, call217-333-0519 during business hours.

Whenever submitting a sample, provide as much informa-tion as possible on the pattern of injury, the pattern on individ-ual affected plants, and details on how symptoms have changedover time.

Fees vary depending on the procedure. General diagnosisincluding culturing costs $15; ELISA and immunostrip testing,$25; nematode analysis for SCN (soybean cyst nematode) orPWN (pine wood nematode), $20; specialty nematode testing,such as in corn, $40.

Payment must accompany samples to initiate diagnosis; callif you are uncertain which test is needed. Checks should bemade payable to the U of I or to the Plant Clinic.

Send samples to: U of I Plant Clinic, 1102 S. Goodwin, S-417 Turner Hall, Urbana, Ill., 61801.

livestock

FarmWeek Page 6 Monday, April 30, 2012

Burger King set to go cage and stall free by 2017BY DANIEL GRANTFarmWeek

Burger King last weekannounced that in five yearsit will purchase eggs andpork sourced only fromfarmers who do not use bat-tery cages for egg-layinghens and gestation stalls forpregnant sows.

The company’s new policywill take effect in 2017 —the same year SmithfieldFarms and Hormel plan tohave stalls completelyphased out of pork produc-tion at their operations.

McDonald’s and Wendy’s

previously asked their porksuppliers to outline plans toeliminate gestation stalls, buta timetable was not set ineither case.

The National Pork Pro-ducers Council (NPPC) not-ed it respects the right ofcompanies to make businessdecisions that are in theirbest interests, but expressedconcern last week about thelatest plan in the fast-foodindustry to phase out gesta-tion stalls.

NPPC noted the elimina-tion of gestation stalls willincrease production costs,

raise consumer prices, forcesome pork producers out ofbusiness, and lead to moreconsolidation in the industry— all with no demonstrablehealth benefits to sows.

NPPC supports the posi-tion taken by the AmericanVeterinary Medical Associa-tion and the American Asso-ciation of Swine Veterinari-ans, which recognize gesta-tion stalls are as appropriateas group housing systemsfor providing for the well-being of sows during preg-nancy.

Gene Gregory, president

of the United Egg Producers,said egg producers are willingto make production changesif consumers are willing topay higher prices for theireggs.

One question thatremains about a move awayfrom gestation stalls and lay-er cages is where pork andeggs will be sourced as mostlarge hog and egg-layeroperations use stalls andcages, respectively.

BK currently sourcesonly 9 percent of its eggsand 20 percent of its porkfrom operations that don’t

use cages or stalls.The Humane Society of

the United States (HSUS) lastweek welcomed BK’s deci-sion. In fact, NPPC believesHSUS spearheaded the move.

“It seems that BurgerKing was bullied by an ani-mal rights group whose ulti-mate goal is the eliminationof food animal production,”NPPC said.

HSUS owns stock in 52companies so it can attendshareholder meetings andsubmit proposals for animalwelfare policy, the AssociatedPress reported.

Beef supply safe

Fourth case of BSE confirmed in U.S.USDA joined officials from

all quarters last week in assur-ing consumers that U.S. beefand dairy products are safeafter a dairy cow in Californiatested positive for bovinespongiform encephalopathy(BSE).

Last week’s finding was thefirst case of BSE, otherwiseknown as “mad cow disease,”

fornia rendering facility andwill be destroyed, according toUSDA.

“The bottom line remainsthe same — all U.S. beef issafe,” said Tom Talbot, chair-man of the National Cattle-men’s Beef Association’s Cat-tle Health and Well-beingCommittee. “We commendUSDA and the animal healthexperts for effectively identi-fying and eliminating the

potential risks associated withBSE.”

USDA in 1997 banned theuse of specified risk material(parts of the animal mostlikely to contain BSE if pres-ent in a cow) in the foodsupply.

It also banned meat fromall non-ambulatory animals,“downer cattle,” from enter-ing the human food chain.

Meanwhile, the Food andDrug Administration bannedthe use of ruminant materialin cattle feed to prevent thespread of the disease inherds.

“Evidence shows our sys-tems and safeguards to pre-vent BSE are working,” saidJohn Clifford, USDA chiefveterinary officer.

The peak of BSE casesworldwide occurred in 1992when there were 37,311 casesacross the globe. In 2011,

there were only 29 cases ofBSE worldwide.

Last week’s case of BSE,and three out of the four con-firmed cases of BSE in theU.S., was atypical.

“What that means is it’snon-contagious and occurredspontaneously,” said EricJohnson, spokesperson withthe Illinois Beef Association.

“It (the BSE infection)happened naturally and not

from feed intake.”The U.S. beef market

remained steady, a stark con-trast to when BSE first wasdiscovered in the U.S. in 2003.

Dozens of countries afterthe 2003 incident bannedimports of U.S. beef, cattleprices plunged, and the U.S.from 2003 to 2011 lost anestimated $3 billion in beefexport sales.

“Our international tradingpartners are, by all indications,adhering to sound sciencewith regard to this finding ofan atypical case of BSE,” saidPhilip Seng, president andCEO of the U.S. Meat ExportFederation.

Key export destinationssuch as Mexico, SouthKorea, Japan, Canada, andthe European Union as ofThursday all planned to con-tinue to import U.S. beef. —Daniel Grant

in the U.S. since March 2006and the fourth overall sinceBSE was discovered in a cowin Washington state in Decem-ber 2003.

“USDA remains confidentin the health of U.S. cattle,”said Ag Secretary Tom Vilsack.

“The systems and safe-guards in place to protect ani-mal and human health worked

as planned to identify this casequickly and will ensure that itpresents no risk to the foodsupply or to human health.”

The dairy animal was dis-covered at a rendering facilityand its meat never was pre-sented for human consump-tion (milk does not transmitBSE). The carcass as of lastweek was being held at a Cali-

‘Evidence shows our systems andsafeguards to prevent BSE are work-ing.’

— John CliffordUSDA chief veterinary officer

Education

Page 7 Monday, April 30, 2012 FarmWeek

Ag education initiative on state’s fast track BY KAY SHIPMANFarmWeek

Illinois students will learnmore about careers in agricul-ture, food, and naturalresources via a new state edu-cation initiative. Ag ed sup-porters learned recently theIllinois State Board of Educa-tion will fund an agriculturalproposal.

A total of $430,000 will bereceived over three years, said

Jay Runner, state coordinatorfor the Facilitating Coordina-tion in Agricultural Educa-tion.

“We really look to ag ed tohelp us be a leader of learningexchanges,” said Mike Bakerwith the Department of Com-merce and Economic Oppor-tunity. A learning exchange iscomprised of curriculum,career exploration, work-based learning, student organ-

izations, and internships oreducational job experiences.

In February, Gov. PatQuinn launched the IllinoisPathways initiative to preparestudents for college andcareers.

Agriculture was one ofnine key career fields in thestate, and an ag ed team sub-mitted a proposal for fund-ing.

Runner outlined some of

the team’s plans during arecent ag education sympo-sium in Bloomington.

Career information isbeing compiled for 48 ag-related careers identified ascore positions within the ag-related industry and/orthose that lack enough quali-fied individuals.

Extensive marketingmaterials, such as postersand electronic information,will be created for each ofthe 48 careers, and the mate-rials will be distributedamong county literacy coor-dinators and others, Runnersaid.

An additional 40 ag-relat-ed careers were ranked basedon industry needs. Careerprofile information will bedeveloped for those if fund-ing is available, Runneradded.

The team is developing avideo about the core ag-related careers and exploringthe creation an ag careerapplication for smartphones.

Students who download

the “app” would be able tolearn about the careers anddo career-related activities.

The ag initiative also mustfulfill nine requirements,

such as electronic learningresources, student organiza-tions, work-based learning,career awareness, and real-world challenge.

“We’re trying to puttogether plans to address thenine core” requirements,Runner told ag educationsupporters.

‘We really look toag ed to help us bea leader of learningexchanges.’

— Mike BakerIllinois Department of Commerce and

Economic Opportunity

Supervisor training needed for somefarmers who employ CDL drivers

Recently, several questionshave surfaced about a long-standing federal requirementfor supervisory trainingregarding drug and alcohol

screening, according to KevinRund, Illinois Farm Bureausenior director of local gov-ernment.

The Federal Motor CarrierSafety Administration (FMC-SA) has published guidance onthat requirement.

Drug screening is mandatedfor any driver who is requiredto have a commercial driver’slicense (CDL).

First, a farmer needs to fig-ure out whether a CDL isrequired and then otherrequirements will be deter-mined from that, Rundadvised.

If an owner-operator hasemployees in addition to him-self, and any — including theemployer — are required tohave a CDL, then the employ-er also must provide someoneto supervise a drug and alcoholscreening program, Rund not-ed.

All such drivers — includ-ing the owner-operator — aresubject to that supervision.The supervisor is required tobe trained or the employercould face fines for not com-plying with federal regulations,Rund said.

However, if the owner-

operator is the sole employee,then the requirement forsupervisor training would bewaived. Remember that drugand alcohol screening is man-dated only for drivers requiredto have a CDL, Rund said.

More information is avail-able online at {www.ilfb.org}in the current issues/trans-portation and infrastructuresection under the policy andissue tab. — Kay Shipman

Illinois Forage Expo set for July 10The 2012 Illinois Forage

Expo will be from 9 a.m. to3 p.m. July 10 in Pittsfieldin Pike County.

It will be hosted by OwenBrown, GFC Bale Band-Itat 34273 210th Ave., Pitts-field.

The site can be reachedby going west and thensouth of Pittsfield on Route54 about 5 miles, then east1 mile on 1100 N Road.

The Forage Expo willinclude field demonstra-tions of forage harvestingequipment and commercialdisplays of forage-relatedproducts and equipment.

Educational sessions onforage management alsowill be presented.

The Forage Expo is co-sponsored by the IllinoisForage and GrasslandCouncil (IFGC), Universityof Illinois Extension, andthe Natural Resources Con-servation Service.

A quality hay and haylage

contest will be offered tofarmers for 2012 harvestedbales and haylage.

Contest entries must bedelivered on site between8:30 to 10 a.m.

There is no entry fee andNIRS analysis will be pro-vided free of charge.

Bales weighing more than100 pounds will need anofficial scale weigh ticket.

Four hay classes and onehaylage class will be offeredand class winners willreceive a certificate.

For information aboutthe contest, contact RonAtherton, IFGC boardmember, at 815-622-2734or e-mail him at ron.ather-ton@agriking.com.

Additional informationabout the expo is availableat {www.illinoisforage.org}.

FROM THE COUNTIES

FarmWeek Page 8 Monday, April 30, 2012

Farm-city event celebrates agriculture, centennialBY RYAN KLASSY

The seventh annual Touch-a-Tractor at the Kane CountyFarm Bureau (KCBF) attract-ed a steady crowd to help

highlight the Farm Bureau’scentennial celebration.

As a special event for thecelebration, professional carv-er Michael Bihlmaier of

Marengo turned the base ofthe trunk of a 120-year-oldash tree, taken down due todisease, into a towering ear ofcorn on the corner of the

KCFB property. Bihlmaier used half a dozen

chainsaws of varying sizes tochip away at the carving overthe course of the three-dayevent, creating a tribute to Illi-nois’ No. 1 commodity crop.

What resulted was an 8-foot-tall ear of corn, completewith curling husks that cradlemore than 350 individuallycarved kernels of corn.

At the base is the KaneCounty Farm Bureau’s 100thanniversary logo.

“We’re really impressedwith the job Mike did,” saidPublic Relations ChairmanBeth Engel of Hampshire.

“The detail is so impressive.“It should catch the atten-

tion of drivers on RandallRoad and give them a reasonto stop and see what we’redoing to promote a bright fu-ture for agriculture here inKane County.”

KCFB also kicked of theCentennial Grove tribute pro-gram and visitors were able toget a first-hand look at thetrees available for purchase todedicate to individuals orevents.

Another first-time attrac-tion was a 1913 Port Huronsteam engine brought in byKCFB member Tom Runty.

It was a huge hit with kidsand adults.

The steam engine, whichRunty bought in 1999 andspent five years restoring, is al-most exactly the same age asKCFB, which has a date ofDec. 31, 1912, on its charter.

“Because we are celebratingour 100th year, we wanted tomake this Touch-a-Tractor oneto remember,” said Directorand Public Relations Commit-tee member Bill Collins.

The event featured 17 an-tique tractors, modern farmequipment, farm animals andmany agricultural activities forchildren.

The weekend wrapped upwith the announcement of 21college-bound recipients ofnearly $22,000 in KCFB Foun-dation scholarships, followedby the drawing of the winnersin the not-for-profit’s annualWinner’s Choice Tractor Rafflefundraiser.

It was estimated 1,500 peo-ple attended the three-dayevent.

Ryan Klassy is KCFB’s informa-tion director. He can be reached at630-584-8660.

Kane County Farm Bureau (KCFB) Information Director Ryan Klassypoints out details in a corn ear carving to KCFB members Erwin Panzerand Bernice Maness of Maple Park. The sculpture tops out at 11 feettall and sports a KCFB 100th anniversary logo designed by KCFB mem-ber Alysa Radtke. The carving is the handiwork of professional chain-saw carver Michael Bihlmaier of Marengo (see inset), who carved morethan 350 kernels of corn into the trunk of a 120-year-old ash that need-ed to be taken down due to disease. (Photos courtesy KCFB)

AG-CITED TO LEARN ABOUT FARMING

Bruce Thompson, a Cass-Morgan Farm Bureau board member from Arcadia, answers questions posed byfourth graders from South Jacksonville Elementary School during their visit last week to Illinois Farm BureauDirector Dale Hadden’s farm. For 17 years, the Hadden family has hosted farm visits by fourth grade class-es that participate in the Cass-Morgan FB’s “Ag-Cited about Agriculture” program. This year, 15 schools,including 24 fourth grade classes, participated in the program that extends throughout the school year.(Photo by Ken Kashian)

from the counties

Page 9 Monday, April 30, 2012 FarmWeek

CHAMPAIGN — FarmBureau will sponsor a

landowner rights meeting at5:30 p.m. Wednesday, May 9, atthe Farm Bureau office. Infor-mation will be provided oncoal, gas, oil, and wind energyleases. An Illinois FarmBureau legal team will discusslandowner rights, contracts andleases, and guidelines to followif approached by a mineralcompany representative. Callthe Farm Bureau office at 217-352-5235 for more informa-tion.

• The Champaign CountyFarm Bureau Foundation willorganize the Countryside 10Kand two-mile walk Saturday,June 2, beginning at Witt Park,Sidney. Cost is determined ifparticipating in the 10K run ortwo-mile walk. Online registra-tion is available at {ccfbfoun-dation.com} or forms that areavailable at the Farm Bureauoffice. Register by May 11 andreceive a hat and goodie bag.Call Debby Rehn at 217-352-5235 for more information.

COOK — Farm Bureauwill sponsor a stroke

detection screening Tuesday,May 15, at the Farm Bureauoffice, 6438 Joliet Road, Coun-tryside; and Wednesday, May16, at the Country Financialoffice, 2435 W. SchaumburgRoad, Schaumburg. Membersmay save up to $35 for thescreenings. Call 877-732-8258for an appointment or moreinformation.

• Farm Bureau has soil test-ing kits available. Soil testingprices are based on the soilsample test lab cost. Call theFarm Bureau office at 708-354-3276 for a kit or more informa-tion.

• For information aboutCook County greenhouses,farmstands, and farmers’ mar-kets, visit the website{www.localfarmproducts.org}.

HAMILTON — TheHamilton and Jeffer-

son County Farm Bureaus will

sponsor an informational meet-ing on landowner oil and gasleases at 1 p.m. Monday, May 7,at the Roland Lewis Communi-ty Building, Mt. Vernon. LauraHarmon, Illinois Farm Bureauassistant general counsel; DaveForeman, oil and gas leaselawyer; and Kevin Reimer,geologist, will be the speakers.Call the Jefferson County FarmBureau office at 618-242-4510by Friday for reservations ormore information.

HENRY — Henry,Knox, Mercer, Stark,

and Warren-Henderson Coun-ty Farm Bureaus will sponsorthree “Ag in a Day” teacherworkshops at the followingdates and places: June 11,Galesburg; June 12, Alpha;and June 13, Kewanee. Work-shops will include hands-onactivities, grants for class-rooms, kit give-aways, andfarm tours. There is nocharge to attend. Deadline toregister is May 15. Call theMercer County Farm Bureauoffice at 309-582-5116 forreservations or more informa-tion.

• Bureau and Henry CountyFarm Bureau Foundations willsponsor a TractorTrek Satur-day and Sunday, June 23-24.Proceeds will benefit the Agin the Classroom programs inthe counties. Cost is $75,which includes lunch andrefreshments. Deadline toenter is June 8. Call DaveDoty at 815-739-5983, theBureau County Farm Bureauoffice at 815-875-6468, or theHenry County Farm Bureauoffice at 309-937-2411 formore information.

JEFFERSON — TheHamilton and Jefferson

County Farm Bureaus willsponsor an informational meet-ing on landowner oil and gasleases at 1 p.m. Monday, May 7,at the Roland Lewis Communi-ty Building, Mt. Vernon. LauraHarmon, Illinois Farm Bureauassistant general counsel; Dave

Foreman, oil and gas leaselawyer; and Kevin Reimer,geologist, will be the speakers.Call the Farm Bureau office at618-242-4510 by Friday forreservations or more informa-tion.

MONTGOMERY —The Prime Timers will

meet at noon Wednesday, May16, at the Lion’s Club, Hills-boro. A beef and noodles din-ner will be served. Cost is $8.Mike Meier, managing directorfrom Focused Pursuit LLC andauthor of A Focused Pursuit in

China, will be the speaker.Deadline to register is Friday,May 11. Call the Farm Bureauoffice at 217-532-6171 formore information.

• The Prime Timers willtake a bus trip Sunday, July 1,to see “Nunsense A-Men!” atConklin’s Barn II Dinner The-atre, Goodfield. Cost is $56.Call the Farm Bureau office at217-532-6171 by Thursday,May 31, for reservations ormore information.

STARK — The PrimeTimer’s picnic will be

from noon to 2 p.m. Wednes-day, May 16, at the FarmBureau office. A barbecuepork meal will be served. An

update on upcoming trips willbe given. Call the Farm Bureauoffice at 286-7481 by Monday,May 14, for reservations ormore information.

VERMILION — FarmBureau will sponsor a

Marketing Local Foods work-shop at 7 p.m. Monday, May 7,at the Farm Bureau auditorium.Cynthia Haskins and MaryEllen Fricke, Illinois FarmBureau, will discuss establish-ing a brand identity and devel-oping a marketing plan forfood products along with web-sites and social media. Call the

Farm Bureau office for moreinformation.

• Vermilion and ChampaignCounty Farm Bureaus willsponsor a landowner rightsmeeting at 5:30 p.m. Wednesday,May 9, at the Champaign Coun-ty Farm Bureau, 801 N. CountryFair Drive, Suite A, Champaign.An Illinois Farm Bureau legalteam will discuss landownerrights, contracts and leases, andguidelines to follow ifapproached by a mineral com-pany representative. Call the

Farm Bureau office for moreinformation

Antique farm show May 5 at New SalemHorse-drawn plows and historic farming equipment and

farming methods from the 19th century will be featured atan antique farm show from 10 a.m. to 4 p.m. Saturday atLincoln’s New Salem State Historic Site near Petersburg.

The event is free and open to the public. Horse-drawn plows will work fields in the village, and

Central Illinois farmers who still use horses for farming willbe on hand with their teams and equipment to demonstrateearly plowing, planting, and other work.

Fieldwork demonstrations will be held weather permit-ting.

Historic farming equipment will be displayed near thethe Blacksmith Shop and allow visitors to learn about farm-ing technology from Abraham Lincoln’s time to the early1900s.

The Vintage Ag Association of Menard County will havean antique tractor display in the Visitor Center parking lot.

prOFiTABiliTy

FarmWeek Page 10 Monday, April 30, 2012

Export inspections(Million bushels)

Week ending Soybeans Wheat Corn04-19-12 12.0 24.4 29.404-12-12 18.9 26.2 43.4Last year 11.2 28.9 37.5Season total 1072.9 895.5 1053.1Previous season total 1350.5 1093.7 1122.7USDA projected total 1275 1000 1700Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

Feeder pig prices reported to USDA*Weight Range Per Head Weighted Ave. Price10 lbs. $32.50-46.00 $39.6440 lbs. $65.67-65.95 $65.8150 lbs. no longer reported by USDAReceipts This Week Last Week 126,725 101,105*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 $79.32 $79.23 0.09Live $58.70 $58.63 0.07

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

Steers 119.52 122.98 -3.46 Heifers 119.30 122.38 -3.08

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 148.85 150.18 1.33

CME feeder cattle index — 600-800 Lbs.

Lamb prices

(Thursday’s price)

n/a

Many ‘big’ variables in 2012/13 fertilizer outlookBY JOE DILLIER

Fertilizer markets have beenextremely volatile recently,more so than any other com-modity market. The whole-

sale price ofurea, themost volatile,dropped 25percent fromNovember toDecember,then doubledfrom theDecemberlevel by lateMarch.

The wholesale price of DAPfell from August to Decem-ber by more than 30 per-cent, and since then has

jumped 15-20 percent. What drove much of this

volatility was fear: Dealers andwholesalers were worried todeath last fall that we werepossibly looking at a repeat ofthe price implosion of2008/09, especially with theGreek/Europe question.

Buyers stepped back fromthe market and prices fell.Then, because more supplyultimately was needed, pricesrose rapidly.

The volatility in fertilizer isattributable to the nature ofthe market — seasonal usageon the demand side vs. contin-uous production on the supplyside.

And a very large factor is

that fertilizer demand is veryinelastic — it takes a very largechange in price to affect thequantity of demand.

It is evident that the dra-matic improvement in cropeconomics in recent times hasmade the demand for fertiliz-ers that much more inelasticand is driving more pricecraziness.

Volatility looks to be a mar-ket staple in the new year, too.

A big “outlook factor” isnew production capacity com-ing on stream.

Cheap natural gas (not onlyin the U.S.) is a propellant innitrogen; in phosphate andpotash, manufactures arebringing on new production to

capture margins that are muchlarger than a few years back.

This has the potential tosend prices lower.

Another factor is China,which is a big exporter ofnitrogen and phosphate and isexpected to have substantialnew supply in 2012/13.

But with changing currencyand energy prices in China,how much old productioncapacity gets shut down is abig question.

Foreign policy develop-ments are another considera-tion, as Iran, Saudi Arabia,and other Persian Gulf statesare big nitrogen producersand are getting bigger.

Any Gulf disruption

would have a serious, immedi-ate impact on nitrogen mar-kets.

Then there is the questionof where grain markets gothis summer.

Simple, huh? The strategy to deal with

this volatility surely has to beto back-to-back sell grain andbuy fertilizer at the same timeto as much extent as possible.While not always possible,selling grain/buying fertilizershould be a “plan A” strategygiven the dramatic volatilitypresent today.

Joe Dillier is GROWMARK’sdirector of plant food. His e-mailaddress is jdillier@growmark.com.

Joe Dillier

Hay production could grow; prices expected to moderateBY DANIEL GRANTFarmWeek

Grass and alfalfa growththat got off to a quick start

earlier thisspring hasslowed inrecent weeksdue to cooland dry condi-tions acrossmuch of thestate.

Thestatewide

average temperature the thirdweek of this month was just

53.2 degrees, 1.5 degreesbelow normal.

Meanwhile, more than onequarter of topsoil moisture (28percent) and 36 percent ofsubsoil moisture in the state

last week was rated short orvery short.

However, farmers stillexpect a good hay crop and,

combined with a big harvestlast year in the state, hay pricesshould moderate this year,according to Jeff Beasley, pres-ident of the Illinois BeefAssociation and a cattle pro-ducer from Creal Springs.

“It was extremely hot inMarch (with temperatures inthe 80s) and at first the grasswas really jumping out,”Beasley told FarmWeek. “Allof a sudden it dried up andcooled off, and it seemed thegrass quit growing.”

Beasley’s Williamson Coun-ty farm received an inch ofrain about two weeks ago,which helped the situation.

“I’m thinking the hay cropat this point is average,” hesaid. “And there was a big haycrop last year that helpedprices moderate somewhat. So,right now, we’re probably look-ing at average hay prices.”

Illinois hay prices as of thefirst of week this month weresteady to $20 per ton lower,USDA reported. Prices rangedfrom $260 to $280 per ton forpremium alfalfa in NorthernIllinois to $120 to $160 for fairalfalfa in Southern Illinois.Good grass hay across thestate averaged between $160and $180 per ton.

The situation in Illinois thepast year was much bettercompared to drought-inducedhay shortages experiencedacross much of the southernU.S., particularly Texas.

Many producers in theSouth were forced to liquidateherds or drive hundreds ofmiles to find feed for their ani-mals, according to the CMEGroup Daily Livestock Report.

The situation continued toaffect the market, and hayprices nationwide earlier thismonth reached all-time highsfor this time of year (seegraphic).

The feed outlook this year

is much improved as hay acresare projected to climb by near-ly 1 million to 57.3 million.Moisture conditions in theSouthern Plains are muchimproved compared to lastyear.

Corn prices also are expect-ed to average below year-agolevels.

“I think with feed priceskind of moderating, we’re notin too bad of shape,” Beasleysaid.

Farmers can buy or sell hayonline in the state at the Illi-nois Department of Agricul-ture’s hay and straw directoryat {www.agr.state.il.us/markets/hay}.

Jeff Beasley

FarmWeekNow.com

Check out the latest Illinois haymarket prices at F a r mWee k -Now. c om .

April 30Rural listening session with Lt. Gov. Sheila Simon, 1 to3 p.m., FHM Burchard Hills Family Healthcare Center,Freeport.

May 10Rural listening session with Lt. Gov. Sheila Simon, 10a.m. to noon, the Ray and Joan Kroc Corps CommunityCenter, Quincy.

May 12IAA Foundation 5K Grow and Go, Illinois Farm Bureauheadquarters, Bloomington.

June 14IAA Foundation Golf Outing, Pontiac Elks and WolfCreek Golf Club, Pontiac.

July 192012 Illinois Forage Expo, 9 a.m. to 3 p.m., Pittsfield.

DATEBOOK

PROFITABILITY

AgriVisor Hotline Number

309-557-2274

AgriVisor endorsescrop insurance by

Policies issued by COUNTRYMutual Insurance Company®,

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AgriVisor LLC1701 N. Towanda Avenue

PO Box 2500Bloomington IL 61702-2901

309-557-3147

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

CASH STRATEGISTCorn Strategy

ü2011 crop: Market actionhints the 20-week low may stilllie ahead. Given currentprices, and the approachinglow, we’d put off making anycatch-up sales until after thatlow is hit. Even if prices droplower in the short term, theyshould be able to reach theselevels again.

ü2012 crop: Use rallies to$5.40 on December futures tomake catch-up sales. Saleswere increased to 40 percentwhen the fail-safe was trig-gered three weeks ago. Weprefer hedge-to-arrive con-tracts for making sales, butplan to tie up the basis bymid-summer.

vFundamentals: Eventhough new business withChina has been confirmed, themarket response was less thanenthusiastic. The bulk of thebusiness coming from the newcrop instead of the old illus-trated their price sensitivity tothe premium old-crop pricescommand. Planting progresscontinues at an above averagepace, but if longer rangeweather forecasts hold up, itcould be slowed to a normalpace. Cool weather hasslowed early growth, but frostdamage has been limited.

Soybean Strategyü2011 crop: The market

may not have given a sign thatprices are about to turn down,but given the risk/reward, sellremaining inventories unlessyou want to hold “gamblingstocks” into summer. Thefirst break could be brutalwhen it comes, with therecord long position held bytrading funds.

ü2012 crop: Price another10 percent now, lifting thetotal to 40 percent.

vFundamentals: Ongo-ing talk about reductions inSouth American crops finallylifted soybean prices over lastyear’s highs. But the rally to$15 eroded as quickly as itoccurred. With Brazilian har-vest nearly complete andArgentina’s close to 50 per-cent, we doubt there’s muchmarket lift from them yet tocome. Chinese businessremains steady, but look fortheir emphasis to start shift-ing to new crop. A slower

pace of corn planting couldhelp shift acreage to soy-beans.

ûFail-safe: If Novemberfutures fall below $13.45, getthe new-crop sale made.

Wheat Strategyü2011 crop: The wheat

market could be shifting into asideways trend, but the marketremains vulnerable to furtherweakness with seasonal pres-sure and impending harvest adrag on prices. Use rallies towrap-up old-crop sales. Usethe cash market to make sales.Don’t carry unhedged invento-ries beyond April.

ü2012 crop: Use rallies to$6.38 on Chicago July futuresto make catch-up sales. Pro-

ducers selling 100 percent offthe combine need to beaggressive in making sales onrallies.

vFundamentals: Thedownside has been limited bynews that sporadic coldweather concerns in the U.S.prompted the InternationalGrains Council to reduce itsworld wheat production esti-mate for 2012-2013 by 5 mil-lion metric tons (mmt.) to676 mmt. While WesternEuropean countries havereceived rain, there are pock-ets in Russia and Kazakhstanthat have been drying out.Export demand has beensteady but not overly excit-ing.

Cents per bu.

Oilseed supplies have been tighter

Page 11 Monday, April 30, 2012 FarmWeek

bean prices in the real havejumped to new record highs.We have also heard 25 percentof the new crop has beenpriced, with some talk that theportion may even be higher.That tends to help ensure ex-panded plantings next year.

This past week, there wastalk in Argentina that produc-ers are planning to significantlyscale back winter wheat plant-ings because of the impactgovernment policies have onwheat prices. That could pushmore acreage into “singlecrop” soybeans next year.

High prices and aggressiveearly pricing tend to suggest ahigh level of input usage forthe next crop as well. Andafter two years of yield diffi-culties in Argentina, and thisyear’s difficulties in Brazil andParaguay, yield potentialshould be better this comingyear.

It’s easy to build a case forproduction in Brazil, Argenti-na, and Paraguay reboundingto 135 million metric tons(mmt) from this year’s 113mmt. That’s a potential 5-bil-lion-bushel crop next spring.

In the end, all we need toproduce in the U.S. this sum-mer is a crop large enough tomeet demand to get the worldto the next South Americancrop. And if there is a goodcrop there, current prices arelikely too high. If demandwere to disappoint, it would bean added drag on the market.

As much as we look at thetotal oilseed sector, it’s still dif-ficult to come up with a realtight scenario unless one as-sumes poor crops in the U.S.this summer and in SouthAmerica next year.

Yet the trade seems to beworking from the premise thatU.S. and new-crop SouthAmerican crops may not belarge enough to meet expecteddemand over the coming year.

At the end of this marketingyear, the stocks-to-use ratio foroilseeds, adjusted to counterthe six-month differential withmost South American supplies,is not as tight as it was lastsummer, nor as tight as it wasin the 2007/2008 marketingyear.

The trade finds it easy tobelieve U.S. farmers may notplant enough soybeans thisyear because of the March in-tentions number. But as wehave pointed out, there are anumber of historical prece-dents in which soybean plant-ings were significantly higherin the June report than theywere in the March report.

A month ago, we started tohear talk of expanded Brazil-ian plantings being planned fornext year. And since then, soy-

perspectives

FarmWeek Page 12 Monday, April 30, 2012

Biographers and histori-ans have written moreabout Abraham Lin-coln than any otherAmerican president,

but they never seem to pay much atten-tion to his influence on American agri-culture. If they are ever going to recog-nize his contributions, this would be anappropriate time.

One-hundred fifty years ago, in1862, the 37th Congress passed, and

President Lincolnsigned, three laws ofgreat importance toagriculture.

They were an act toestablish a Departmentof Agriculture, theHomestead Act, andthe Morrill Land-GrantAct. The departmentdid not immediatelyattain cabinet-level sta-

tus; that came more than two decadeslater.

It was Lincoln who referred to theDepartment of Agriculture as “thePeople’s Department.” He undoubtedlycalled it that because half of thenation’s people at that time were farm-ers.

Recently, the term has been misusedby some to try to subordinate the needsof farmers and ranchers.

Before becoming president, Lincolntold a farm audience in Milwaukee,Wis., that farmers were neither betternor worse than other people, andadded, “But farmers being the mostnumerous class, it follows that theirinterest is the largest interest.”

The Homestead Act to open up theWest had been a platform plank of thefledgling Republican Party.

It allowed a citizen to file for 160acres of public land. All he had to dowas pay a nominal fee, improve theland and settle there for five years.

The Morrill Act gave the states fed-eral lands to establish land-grant col-leges, which formed a higher educationframework for the nation and becamecenters of agricultural learning. Afterthe Civil War, the act was extended tothe southern states.

Lincoln was raised on the frontier byparents who had limited success farm-ing. He understood the importance offarmers obtaining knowledge to farmbetter. In fact, Lincoln thought farmingwas an ideal occupation for the “com-bination of labor with cultivatedthought.”

“Every blade of grass is a study;” hesaid, “and to produce two where therewas but one, is both a profit and apleasure.” Those feelings still ring truewith farmers today.

If Lincoln needed another reasonfor the federal government to promoteand encourage the success of Americanagriculture, he could have found it inthe disastrous Irish Potato Famine thatbegan in the summer of 1845.

A million Irish died from the famineand millions more emigrated, many toAmerica and Lincoln’s home state ofIllinois.

The Irish famine may haveimpressed upon the president and oth-er political leaders of his day theimportance of having a stable, diversefood supply, and the knowledge to pro-duce enough food for a rapidly growingnation.

In any event, the laws signed 150years ago transformed American agri-culture, setting it on a course tobecome the envy of the rest of theworld.

It is only because Lincoln’s legacy isso large that we seldom recognize thispart of it.

Stewart Truelsen is a regular columnist for theAmerican Farm Bureau Federation andauthor of Forward Farm Bureau.

STEWARTTRUELSEN

The U.S. economy continues toimprove — albeit at a moderate pace.

Labor and housing markets are bothshowing some long-awaited signs ofhealing, although recent numbers havebeen lower than expectations. Retailsales also have been decent, althoughthe growth has slowed somewhat fromlevels seen in 2011.

These factors, coupled with hopefor resolution to issues in Europe andcontinued accommodative global mon-

etary policy, sparked arally in equity pricesaround the world. Onthe back of a double-digit gain in the fourthquarter of 2011, stocksposted their best firstquarter return since1998.

The S&P 500 Indexadvanced 12.59 percentwhile the EAFE Inter-

national Index rose by 11 percent.Recently, stocks have given back someof the first quarter gains, with the S&Pup about 10 percent as of mid-April.

Here in the U.S., the markets weredriven primarily by financial, technolo-gy, and retail stocks. Many of the worstperformers during 2011 came roaringback with massive gains.

The best S&P 500 performer duringthe quarter was Sears, surging by 108percent after being down 55 percentlast year. Bank of America was anotherexample, registering a whopping 72percent return after dropping by 58percent last year.

Notable tech darlings — such asNetflix, Priceline.com, Salesforce.com,and Apple — all posted gains of 48percent or more during the quarter.Amazing moves in such a short period.

Has the all-clear sounded so every-one can now jump back into the stockmarket? We aren’t sure of that.

First of all, complacency frominvestors is unbelievably high. A snap-shot of this complacency can be seenby looking at the VIX volatility index.Essentially, it shows that investorsaren’t afraid of a significant pullback.

This seems strange to us given some

of the potential dark clouds that con-tinue to form. For example, we haverising gasoline prices that could easilystunt consumer spending; China hasbeen showing signs of a slowdown;and the European mess still seems farfrom resolved.

Spain and Portugal are having trou-ble reducing spending, which is causinginterest rates on their debt to climb.The bond market appears to share ourconcerns with rates hovering near all-time lows.

Yes, yields have increased slightly,but with the 10-year Treasury still hov-ering just above 2 percent, it’s tough tosay that the bond market indicateseverything is rosy. Even if none ofthese issues stops the market progress,there is good reason to believe a short-term pullback might be in order.

Rarely has the market had the typeof percentage gain seen in the last sixmonths without a correction. If we dosee a pullback, we are ready to takeadvantage of any compelling invest-ment opportunities that arise.

While a short-term retrenchment instocks is probably due, we modestly areoptimistic that many of the gains we’veseen this year can be held or evenincreased. The key could be continuedeconomic expansion and no furthersignificant increase in gas prices.

The upcoming presidential election,along with all of corresponding politi-cal promises, also could be positive.Candidates likely will pull out the sameold playbooks of promising everythingto everybody.

Not to disparage any politician orpolitical party, but when was the lasttime you heard anyone who wanted toget elected talk about how rough thingswill be under his or her watch? I’m surewe’ll hear a lot of discussion aboutlower taxes, more jobs, business invest-ment, etc.

As long as there aren’t too manyquestions about how these things getdone, the markets probably will reactpositively.

Derek Vogler is vice president of wealthmanagement for Country Financial.

Market gains, improvements may foreshadow growth

DEREKVOGLER

Seven score and 10 years ago

Lincoln’s legacy to agriculturecelebrates sesquicentennial

“Ixnay.”