October 2011, Volume 15, Issue 7

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October 2011

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Inaugural Farm Fresh Feast

Volume 15, Issue 7

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Mexican Grain Buyers Tour Eastern Idaho

Idaho Farm Bureau

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Food Prices on the Rise


Countryside Grassroots at Work

The Ag Agenda

By Bob Stallman AFBF President

Farm Bureau has an outstanding reputation as an effective grassroots organization. For the past 92 years, Farm Bureau members have played instrumental roles in legislative efforts that have helped shape U.S. agriculture. American Farm Bureau policy comes from the bottom up. Our policy positions start at the county,

Immigration Reform a Top Priority By Frank Priestley President Idaho Farm Bureau Federation

Farmers and ranchers face a shortage of workers who are willing and able to work on farms and in fields. In addition, finding those

Cautious 2012 Agricultural Outlook By Rick Keller CEO Idaho Farm Bureau Federation

Current news reports cast much doubt on an economic recovery in the United States in the near future. Headlines such as “Optimism Fades on Wall Street” and “CEO Confidence Hits Ten-Month Low” are just samples of the scores of weekly 2

Idaho Farm Bureau producer / OCTOBER 2011

parish and state levels. They are proposed, debated and approved by farmers and ranchers who grow every different type of crop and livestock species possible across our great land. When you think about the level of policy unity that comes from such stark diversity, it really is astonishing. We don’t always agree on everything. That’s what makes our process credible and real. workers is becoming more politically contentious. In this election cycle, many politicians seem fixed on statements that earn them votes, rather than seeking a viable solution to this problem. Reforming the immigration system must assure that American agriculture has a legal, stable supply of workers, both in the short- and the long-term. This includes attracting a sufficient number of competent, willing and able employees to sustain and grow production; allow-

articles that cross our desks. The troubling forecasts are amplified by the bickering between Congress and the White House. Class warfare is being conducted to soak “the rich” to pay their fair share, when in fact the top 5 percent of the income earners pay 56 percent of the income tax, while the lower 50 percent of income earners pay only 4 percent of the tax. Sadly, many farmers and ranchers are being clumped with the “rich.” With the battle for our tax dollars,

Country Roads As Farm Bureau members, it is ingrained in us to be actively involved and to fight for what we believe in and what we think will better our profession and our country. We are not ones to rest on our laurels while others do the work. We are also not the types to make a lot of See STALLMAN, page 32

ing the recruitment and hiring of non-resident agricultural workers when the need is demonstrated; and allowing an opportunity for some current non-resident agricultural workers to apply for legal resident status. American agriculture faces a shortage of workers every year. A Farm Bureau economic analysis concluded that $5 billion to $9 billion in annual production is in jeopardy if the employee shortage cannot be met. See PRIESTLEY, page 32

programs which were once considered sacred are now under intense scrutiny. Most of the safety net programs for agriculture are on the chopping block. Obama’s plan for deficit reduction recently announced eliminates direct payments, reduces subsidies for crop insurance, reduces conservation funding significantly, imposes substantial increases in user fees, increases capital gain tax rates and returns the estate tax exemption to See KELLER, page 38


Volume 15, Issue 7 IFBF OFFICERS President ....................................Frank Priestley, Franklin Vice President .................................. Mark Trupp, Driggs Executive Vice President ............................... Rick Keller BOARD OF DIRECTORS Bryan Searle ............................................................ Shelley Scott Bird ........................................................... Pocatello Chris Dalley ........................................................Blackfoot Dean Schwendiman ............................................Newdale Danny Ferguson ........................................................ Rigby Scott Steele ..................................................... Idaho Falls Gerald Marchant ................................................... Oakley Rick Pearson .................................................... Hagerman Mike Garner............................................................... Declo Curt Krantz ............................................................ Parma Mike McEvoy..................................................... Middleton Tracy Walton ....................................................... Emmett Marjorie French ............................................... Princeton Bob Callihan ......................................................... Potlatch Louis Kins ........................................................... Kootenai Carol Guthrie ......................................................... Inkom Austin Tubbs............................................................... Malad STAFF Dir. of Admin. Services ........................ Nancy Shiozawa Dir. of Member Services ................................... Ray Poe Dir. of Commodities ............................. Dennis Brower Commodity Assistant .................................. Peggy Pratt Membership Assistant ............................... Peggy Moore Market Information Assistant . ................ Dixie Ashton Dist. I Regional Manager ........................... Justin Patten Dist. II Regional Manager ....................... Kendall Keller Dist. III Regional Manager ................... Charles Garner Dist. IV Regional Manager ................... Russ Hendricks Dist. V Regional Manager ....................... Bob Smathers Director of Governmental Affairs ............ Kent Lauer Asst. Dir. of Governmental Affairs .... Dennis Tanikuni Range/Livestock Specialist........................... Wally Butler Director of Public Relations .............. John Thompson Video Services Manager ............................. Steve Ritter Broadcast Services Manager .................... Jake Putnam Office Manager, Boise ................... Julie Christoffersen Member Services Manager ........................ Joel Benson Printed by: Owyhee Publishing, Homedale, ID GEM STATE PRODUCER USPS #015-024, is published monthly except February, May, August and November by the IDAHO FARM BUREAU FEDERATION, 275 Tierra Vista Drive, Pocatello, ID 83201. POSTMASTER send changes of address to: GEM STATE PRODUCER P.O. Box 4848, Pocatello, ID 83205-4848. Periodicals postage paid at Pocatello, Idaho, and additional mailing offices. Subscription rate: $6.00 per year included in Farm Bureau dues.

MAGAZINE CONTACTS: Idaho Farm Bureau Federation EDITOR (208) 239-4292 • ADS (208) 239-4279 E-MAIL: dashton@idahofb.org www.idahofb.org

Cover: Diners sit down to the inaugural Farm Fresh Feast to kick of the Eastern Idaho State Fair. County commissioners and fair board members were treated to an all-local meal provided by nearby farmers and ranchers. Some of the food was produced at community gardens in Blackfoot. The event was sponsored by Madison, Bonneville, Bingham and Bannock County Farm Bureaus. Photo by John Thompson

Dutch oven potatoes cooked with carrots, onions, butter, salt, pepper and a little bit of Sprite, were a big hit during the inaugural Farm Fresh Feast at the Eastern Idaho State Fair. All of the ingredients for the meal came from local farms and was prepared by Chef Josh Swain of Stockman’s Restaurant.

County Farm Bureaus Sponsor Farm Fresh Feast Article and Photos by John Thompson Farm-fresh, local food and the producers who grew it were the attention-center of a recent event that kicked off the Eastern Idaho State Fair in Blackfoot. The first-ever Farm Fresh Feast came about after a discussion between Eastern Idaho State Fair (EISF) Director Brandon Bird and Jon Lyksett, who coordinated the event. They based it roughly on an idea they got from watching a PBS television program, The Endless Feast. Nearly 100 people from all over eastern Idaho attended the event. Many were county commissioners and Eastern Idaho State Fair Board members. The food, prepared by Chef Josh Swain of Stockman’s Restaurant, and his staff, all came from local farms. The event was sponsored by Bingham, Bannock, Bonneville and Madison County Farm Bureaus. On the menu were appetizers featuring chevre (goat cheese) from Wood’n Goat Garden Dairy in Bingham County, heirloom tomato soup with tomatoes and basil grown at Grove City Gardens and Blackfoot Community Gardens, salad greens from Shoemaker Farms in Bingham County, grass finished beef furnished by Mark Pratt Ranch and free range chicken raised by Paul Wolfley. Potatoes, a variety of fingerling varieties, were supplied by Potandon Growers of Idaho Falls, and other vegetables including squash, eggplant, onions and herbs came from the EISF Garden. Rolls and bread were provided by Downtown Bread Company of Blackfoot. A cheesecake dessert, also made from goat cheese, was baked by Lynn Morrison, owner of Wood’n Goat Garden Dairy. The cake was topped with huckleberry compote. Beverages were provided by Portneuf Brewing Company of Pocatello. See FARM FRESH FEAST page 4 Idaho Farm Bureau producer / OCTOBER 2011

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FARM FRESH FEAST

Continued from page 3

Chef Josh Swain prepares a meal made up of entirely local ingredients to serve about 100 guests at the Eastern Idaho State Fair.

As the meal was served and each course was announced, the various farmers and ranchers who grew the food were given opportunities to speak. Mark Pratt, the rancher who provided the beef, said he got into grass finished beef because he was looking for alternative marketing opportunities for his herd. It was a strategy to diversify his operation and spread risk. Lyksett, who coordinated the inaugural Farm Fresh Feast, said several local farms and ranches are taking advantage of local marketing of value-added products. Potandon Produce, an international corporation based in Idaho Falls, works 4 #

with a grower cooperative to produce dozens of varieties of potatoes that are relatively new to Idaho. “We are seeing a lot of large farms starting to venture out into more specialty type crops,” Lyksett said. “But with this event our primary intention is to celebrate local agriculture.” For instance, during the summer and early fall, local consumers can purchase salad greens or many other fruits and vegetables picked fresh locally, rather than California produce that is hauled to various grocery distribution centers before it makes it to the grocery store shelves.

Idaho Farm Bureau producer / OCTOBER 2011

“You could sit down and eat a salad with lettuce grown in California, trucked to a regional distribution center in Arizona and then to a regional distribution center in Utah and then to your grocery store, or you can buy local produce that was picked the same day and do away with all of the energy usage in transportation,” he said. Along the lines of celebrating local agriculture, Lyksett said EISF is one of the only truly agriculture fairs left in the country. “So many fairs have gone commercial and are not dedicated to agriculture anymore,” he said. “This Farm Fresh Feast is a way to bring the fair back

to its roots and give people an idea of what’s right here in their backyard.” Chef Josh Swain, who prepared the meal, said local food is delicious because it’s fresh and can be prepared simply, by anyone. “I don’t think you need to be a chef to do something like this,” he said. “You can just be a fantastic housewife, and men can do it too. With a meal this large it takes some coordination but the basic idea is to start with fresh ingredients and keep it simple.” Cooking the grass-fed beef was a challenge, Swain said, because it doesn’t have as much


All of the vegetables, excluding the potatoes, served during the inaugural Farm Fresh Feast came from local community gardens in Blackfoot, and private farms in Bingham County.

fat as the beef he is used to cooking. He used a combination of grilling and smoking to cook the beef and served it with a variety of sauces including chutney, chimmichurri and curry, and it was a real crowdpleaser. “You have to handle this beef differently,” he said. “There is less marbling in grass-fed meat and as we all know, fat is flavor. We are infusing with thyme, using a smoker and getting some flame off the grill.” Swain added that cooks need to remember a few basic guide-

lines to prepare great meals. “The most important ingredients are butter, salt and pepper,” he said. “If you get that much right, everything else will fall into place.” Lyksett said he hopes people come away from the event with an appreciation and new knowledge of what’s available locally. They also used the event to promote community gardening and encourage propagation of heirloom varieties of vegetables. One of the tomato varieties used in the soup served that evening was Paragon, de-

veloped by Thomas Jefferson, he said. “Lots of the produce grown for the mass market is not grown for flavor as much as it’s grown for uniformity in size and weight,” he said. “The idea of flavor being most important has largely been lost.” Ebeth Johnson, who hosts the PBS Program, The Endless Feast, is a food educator who travels around the U.S. and Canada, meets local chefs, farmers and ranchers, and brings them all together for a feast. The group is seated at

one long, flowing table. She is from Harlem, New York and is the owner of Conscious Cravers; a food education company that helps people connect eating well to living their best life. She conceived the company because she wanted to change the way that food and wellness is taught to children, teens and adults. Instead of the usual scare tactics about harmful foods, her workshops focus on enjoying food, being healthy and having fun, according to her website.

Idaho Farm Bureau producer / OCTOBER 2011

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A young fair-goer pulls some milk out of Maggie the Cow during the Eastern Idaho State Fair in Blackfoot. Photo by Steve Ritter

Farm Bureau Agricultural Display Deemed Big Success By Jake Putnam

about food.

The Idaho Farm Bureau agriculture display was an irresistible stop for young families at the Eastern Idaho State Fair in Blackfoot.

“Some of the questions we got were surprising. You’d think in a place like Blackfoot people would know all about agriculture, but many families have moved off the farm and into the city,” Judge said.

A large trailer, a tent full of Farm animals, and an artificial cow proved to be magnet for fairgoers on the midway. For 10 days the long lines of families waited to feed the animals and milk Maggie, the artificial cow. “There was a tremendous response. When they lined up, we had the chance to answer questions about milking and more important, where food comes from,” said Bingham County Farm Bureau President Gary Judge. Judge volunteered at the agriculture display and learned that people are curious 6

Idaho Farm Bureau Regional Manager Kendall Keller said the fair was the perfect launch pad for the IFBF’s new mobile classroom. The Moving Agriculture to the Classroom (MAC) display is an enclosed trailer full of hands-on projects designed to teach students about where food comes from and how it’s produced. The MAC is available for schools, fairs and other meetings or gatherings anywhere in the state. “More than 250,000 people that made their way past the display during the fair,”

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Keller said. The Fair Board made an effort to make this an agricultural fair again, they did a good job and not only did we fit in but we had a strong presence.” Keller says planning started about one year ago, when the trailer was purchased and lesson plans formed. He says they had the fair in mind with hopes of attracting parents and teachers to the colorful, kid-friendly lesson plans. The mobile classroom comes equipped with displays, hands-on equipment for kids, and Maggie the artificial milk cow. “We had a few teachers book the classroom right on the spot,” said Judge. “We’re starting to wonder if we can get to all the classrooms with the requests we’ve had so far. It’s been a great response and that’s what we hoped for.”


The fair display animal tent also drew thousands of visitors. Inside neat rows of stalls held everything from goats and sheep to pigs and kids had the chance to feed them, while parents read about each animal and its use in everyday food. Once through the tent kids milked Maggie and then got a carton of milk. Only the mobile classroom will make the trip to the classrooms, but a strong impression was set at the fair.

The display drew praise from Fair Board Director Max Collard: “We’re right in the middle of agricultural country and we

value the time and effort that went into this,” he said. “We want to continue this and show what can be done in agricul-

ture. The displays are hands-on and kids can get up close and see how this works.”

“We’re shipping the mobile classroom to schools when the fair is over. We had the chance to meet with teachers like we planned and we’re booked solid this coming year,” said Keller. Keller says the mobile classroom’s colorful graphics are eye-catching by design explaining that having the trailer parked in front of a school is a valuable public relation tool guaranteed to generate excitement. All the planning paid off in Blackfoot as many interested teachers filled out scheduling forms. At the same time, Farm Bureau county presidents around the state continue to handle requests to bring Maggie the cow to the school and their classroom free of charge. “We did this so these kids can figure out where their food comes from,” explained Judge. “Farm Bureau bought the cow and its set up as a teaching tool and soon it will go to elementary schools all around the state. If we can get the teachers interested in it, we can load this cow up with our little trailer and take them to school. All along our goal was to get kids knowing more about where food comes from.”

Children petting goats during this year’s Eastern Idaho State Fair in Blackfoot. Photo by Steve Ritter

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Charges Dropped in N. Idaho Bear Incident By John Thompson COEUR D’ ALENE – In what’s being viewed locally as an attempt to save face, U.S. Attorney Wendy J. Olson agreed to drop federal felony charges against a Porthill man who shot a grizzly bear in his yard on May 8th in exchange for a civil ticket and a $1,000 fine. Olson said dismissal of the criminal charge against Jeremy Hill was based in part on the fact that he called Idaho Fish and Game shortly after the incident occurred. “The United States Attorney’s Office well understands Mr. Hill is a concerned husband and father who wants to protect his family,” Olson said according to the Associated Press. Hill pleaded not guilty on August 23rd to federal felony charges of killing an endangered species. There were three bears in his backyard attempting to enter his pig pen. His children were also playing in the vicinity at the time. Hill shot the bear three times with a .270 rifle. After the plea agreement was reached, Hill told local media he feared for the safety of his family and he shot the bear to protect them. “We do not live in the wilderness. We live in a rural farm community. I have never seen grizzly bears near our home before,” Hill said. “I shot the grizzly bear because I was fearful for the safety of my family. I thought I was doing the right thing to protect them. Once I shot the bear, I imme8

“People think they have to come in here and save us from ourselves. That we’re not smart enough to manage this kind of area. For crying out loud, we’ve lived here all of our lives; we know what’s best for our land.” diately called Idaho Fish and Game to report the incident.” Marc Lyons, Hill’s attorney, released the following statement: “We are pleased that the U.S. Attorney has agreed to dismiss all criminal charges against Jeremy Hill for the shooting of a grizzly bear at his home on May 8, 2011. We believe that this was the correct decision and that Jeremy should not be subjected to criminal charges. Jeremy believed that the actions that he took in confronting three large grizzly bears at his home were appropriate and necessary to protect his home and family.” Darrell Kerby, former Bonner’s Ferry mayor and longtime friend of the Hill family said criminal charges should never have been filed and the U.S. Attorney’s actions are being viewed with some chagrin in Boundary County. “People are relieved that the criminal charges were dropped and that the Hill family won’t have to deal with the rigors of a full-blown criminal trial,” Kerby said. “But it seems small and petty to us that the U.S. Attorney couldn’t just realize this is an issue of the simple human right to be able to protect one’s family from a dangerous ani-

Idaho Farm Bureau producer / OCTOBER 2011

mal.” The incident spurred outrage from Idaho’s congressional delegation and Governor C.L. “Butch” Otter. Gov. Otter wrote a letter to Interior Secretary Ken Salazar defending Hill’s actions and Idaho’s congressional delegation has thrown its support behind legislation that would reform the Endangered Species Act (ESA). “No one disputes that Jeremy Hill killed a grizzly bear,” Otter wrote in his letter to Secretary Salazar. “The dispute appears to be over the reason for shooting the bear. I would sincerely appreciate your looking into this case and assisting in any way you can.” Idaho Senator Mike Crapo who serves on a committee overseeing the ESA questioned the decision to prosecute Hill. Crapo released the following statement: “Clearly, Mr. Hill thought that his family was in danger and was protecting them from harm. Mr. Hill and his family deserve for this matter to come to a fair and swift conclusion, and once that happens, Congress needs to get to work on common sense ESA reforms to ensure that this deeply unfortunate situation never happens again.

Crapo, Senator Jim Risch and Congressman Raul Labrador introduced legislation in response to the incident that clarifies the need to kill a grizzly bear in self-defense or in defense of another person. In a joint statement, they said the new legislation would “be a drastic improvement over the current ESA regulations.” The incident made national news and drew outrage from many groups across the nation. Fox News’ Brian Kilmeade called it an outrage and on the Internet, the Huffington Post broadcast a video story. The Los Angeles Times carried a detailed report outlining the deep rift over regulation of endangered species in the rural West and told the story of how people in Boundary County helped raise funds for Hill’s defense in donating nearly $20,000 during the auction of Hill’s daughter’s pig at the Boundary County Fair. The Boundary County Commissioners issued a strong statement in support of Hill and Boundary County Prosecutor Jack Douglas said there is no question that the Hill family was in danger or that Hill killed the bear in defense of his family. The LA Times quoted Guy Patchen, a Boundary County resident as follows: ““People think they have to come in here and save us from ourselves. That we’re not smart enough to manage this kind of area. For crying out loud, we’ve lived here all of our lives; we know what’s best for our land.”


Onion Harvest Off to Good Start

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“What happened is that we had a cooler than normal summer, not many 100 degree days and that meant that the plants were able to grow 24/7. “You see they shut down when it gets real hot. The onions had a chance to catch up and it’s been good for size,” said Freeman. Packing sheds are not talking prices or yields, but Freeman says demand is down, and prices are down 33 percent below last year’s record prices. More acres planted this year contributed to slower market demand but quality looks good so far. “Input prices are up 10 percent, fuel is up and fertilizer is up,” said Freeman. “We don’t know yet how it will all shake out. We’re thinking we will make money, just not as much as last year.”

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Idaho Farm Bureau producer / OCTOBER 2011

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Focus on Agriculture Agriculture’s Folk Hero By Stewart Truelsen America has a fondness for folk heroes, some real, some fictional, like Paul Bunyan, the giant lumberjack; frontiersmen Davy Crockett and Daniel Boone; Casey Jones, the brave engineer; Pecos Bill, the cowboy who rode a tornado; and of course Johnny Appleseed, the itinerant nurseryman. Ironically, Johnny Appleseed is perhaps the most-celebrated but least heroic. He was nothing like Daniel Boone who killed a bear with his bare hands, as the story goes. Today, Boone would be in trouble for that feat with fish and game officers and animal rights activists. Appleseed, on the other hand, wouldn’t harm a mosquito. He put out his campfire at night so insects wouldn’t be drawn into the flames. Johnny Appleseed is one of the real folk heroes. His real name was John Chapman. He was born around the time of the Revolutionary War and is thought to be buried at Ft. Wayne, Ind. Johnny Appleseed catapulted to folk hero status in the 19th century, was rediscovered by Walt Disney and 10

remains a popular character in children’s books. One could consider him an agriculturalist because he planted orchards on America’s early frontier, largely around Ohio and Pennsylvania. But he was a very strange fellow according to a new biography, Johnny Appleseed, The Man, the Myth, the American Story by Howard Means. Chapman usually went barefoot and wore odd headgear, including a pyramid of hats, one of which was a tin pot. His shirt was a burlap coffee sack with holes cut out for his head and arms. Each winter he would load up on apple seeds that he got for free from cider presses in Pennsylvania. Then he would strike out on foot along rivers and Indian trails to unclaimed land where he would plant the seeds in spring and make a brush fence around them to keep out the deer. Chapman later returned to collect seedlings which were sold or bartered with newly arriving settlers, most of whom were farmers. Oftentimes they were required to plant an orchard as a stipulation of land ownership.

Idaho Farm Bureau producer / OCTOBER 2011

The apples from his trees were mostly puny, sour little things, according to Means, who wondered why he didn’t use grafting techniques that were known at the time to produce a desirable apple variety. He may not have cared, Means surmised, because many of the apples were fed through a press and the juice fermented to make hard cider, brandy or vinegar. During the course of his life, Chapman bought several lots in towns along his way, leading to the conclusion that he might have been a small-time land speculator. He also was a religious zealot who approached settlers with a cheery greeting and news that he said came direct from heaven. Even by frontier standards John Chapman was an odd character, although he was welcomed wherever he went as a missionary of goodwill. The life stories of many pioneers have been lost or forgotten, which is really a shame, but their odd visitor, Johnny Appleseed, is remembered to this day. Stewart Truelsen is a regular contributor to the Focus on Agriculture series and is the author of a book marking the American Farm Bureau Federation’s 90th anniversary, Forward Farm Bureau.


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IFBF Helps Land Contract With Mexico Wheat Buyers By Jake Putnam The Idaho Farm Bureau recently helped Idaho growers land a wheat contract with Grupo Altex, Mexico’s largest wheat buyer. “We toured for two days different areas in Southern and Eastern Idaho. We offered them some quotes and in a few days they were buying wheat from us, so it was very successful,” said Idaho Farm Bureau Marketing Director Dennis Brower. “We visited a few growers and as the wheat came off the combines they commented that it was the cleanest and most beautiful wheat they’ve seen this year,” said Idaho Farm Bureau President Frank Priestley who hosted the delegation. The Farm Bureau hosted buyers Armando Rosales and Martha Beatriz and worked hard at making long-term ties with Grupo Altex, a Mexican corporation that buys and mills wheat for Bimbo Food Group of Mexico. Bimbo is the 4th largest food corporation in the world. “Bottom-line the Mexican buyers are looking at long term,” added Brower. “They want to know what’s going to be available, so they’re out shopping and trying to find the kind of quality of wheat that they need but also the number of bushels.” The buyer’s visit to Idaho had a sense of urgency because the Mexican drought has cut deep into supply. The two companies need the best wheat on the market at prices they can afford to make up for Mexico’s shortfall.

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“Mexico has to import wheat. The drought has put a lot of pressure on an already hungry market,” said Armando Orellana, of the Idaho Trade office in Guadalajara. “So the buyers we hosted are on the road looking to buy from Canada and other states. We’re very happy to make the ties and have them here. Supply is a big worry in Mexico because of the drought and hopefully it means opportunity for growers in Idaho for years to come.” “They know that the worst thing that can happen to their flour mills is to have them run out of wheat and stand empty. So whatever they have to do to keep flowing into the mills they’re going to do it,” said Brower. According to the latest U.S. Department of Agriculture’s crop production report, Idaho winter wheat yields will average 80 bushels per acre compared to 82 last year. It’s the same situation for spring wheat, Idaho farmers are expected to produce 76 bushels compared to 78 a year ago. That could also open doors for barley even though those numbers were down slightly, 90 bushels compared to 92 bushels in 2010. Despite the numbers, quality is good across the board and traders say there are years when less is more. They say with a tight market, prices will continue to rise and will have an impact in Idaho. The buyers spent considerable time inspecting the crop with the hopes of finding quality that other states lack. “All of the Southern States are going to be short on their wheat, and of course Mex-

Idaho Farm Bureau producer / OCTOBER 2011

ico is very short on wheat this year,” said Brower. “The crop they’ve harvested is going to be very good quality but tonnage is way down. We think it’s a good opportunity to get additional contracts.” The United States is well positioned to take advantage of the Texas and Mexican drought, according to Clark Johnston, a grain marketer with JC Management, who also was part of the touring delegation. “We have good varieties. But what they’re impressed with is the size of the kernels,” he said. The kernels have been plump and the grain has been clean and they saw it firsthand. They’re not seeing that out of other areas. They’ve seen a lot of dockage and the controlled environment of our wheat and that control is a big deal when it comes down to quality.” “My estimation is that this is the best time for the buyers to visit. We want to attract their business so we can export more from Idaho. They are the key in all of this,” said Orellana. While the drought has brought misfortune to the Midwest, its opened doors previous closed to Idaho wheat producers. The Farm Bureau trade-mission toured southeast Idaho for two days, visiting grain elevators in Ririe, Idaho Falls, Blackfoot and Moreland. “They want us to have a better understanding of their needs and what they’re looking for when they buy wheat,” said Brower.


A delegation of wheat buyers from Mexico recently visited Idaho to tour farms and wheat handling and shipping facilities. The tour was hosted by the Idaho Farm Bureau. Pictured left to right are Clark Johnston of JC Management Corp,. IFBF Director of Marketing and Commodities Dennis Brower, Martha Beatriz and Armando Rosales of Grupo Altex, Armando Orrelana Manager of the Mexico Trade Office for the Idaho State Department of Agriculture and IFBF President Frank Priestley. Photo by Steve Ritter

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Western Spruce Budworm damage. Larval feeding causes foliage to turn red. photo credit:Tom Eckberg, Idaho Dept. of Lands

Western Spruce Budworm

By Randy Brooks, UI Extension Forestry Specialist, and Tom Eckberg, IDL Forest Health Specialist

Idaho and the western United States is the Western Spruce Budworm (Choristoneura occidentalis Freeman).

needles throughout late spring and early summer causing a red-halo appearance on outer portions of infested branches.

As Yvonne Barkley mentioned in her previous article on Balsam Wooly Adelgid, pests have long been the source of epidemic outbreaks of both insects and diseases of forest trees. Over the years the trees of North America have been besieged by white pine blister rust, gypsy moth, Dutch elm disease, chestnut blight, Balsam wooly adelgid, and various bark beetles. Another pest that has long caused problems in

Western Spruce Budworm (WSB) is native insect and is the most widely distributed and destructive forest defoliator in western North America. Susceptible tree species include Douglas-fir, true firs and spruces. Larvae will also feed on pines and other conifers when insect populations reach outbreak levels. Buds, current year foliage, and developing cones are fed on voraciously. Larvae initially feed on new

Damage from defoliation can result in reduced vigor, growth loss, and increased susceptibility to attack from other insects and diseases. Direct mortality from repeated and heavy defoliation rarely exceeds about five percent of large mature trees, and is typically confined to smaller, suppressed and pole-sized trees. Outbreaks of budworm can be prolonged, and defoliation can be more severe during periods of drought. Bark beetle attacks may be higher during periods of drought. Drier forests of Idaho such as the Salmon-Challis, Payette, and Boise National Forests are currently experiencing WSBW outbreaks and associated Douglas-fir beetle mortality. The Coeur d’Alene National Forest is currently experiencing widespread, light defoliation.

Western Spruce Budworn larvae

(photo courtesy of Tom Eckberg, Idaho Dept. of Lands)

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Idaho Farm Bureau producer / OCTOBER 2011

Heavy budworm defoliation can also lead to increased fire risk over the short term and can impact the aesthetics of the forest, especially along scenic corridors and homes in and around forested areas. Although large numbers of trees with red needles can increase short term risk of wildfire, small tree mortality resulting from heavy budworm infestation can result in fire hazard over the long term. WSB adults are normally small, mottled, rusty brown moths, but color can vary from tan to almost black. WSB go through four distinct life cycles – egg, larva, pupa, and adult. After mating, females lay eggs on the undersides of needles. Eggs are oval shaped, consist of masses of 25-40 eggs that overlap like shingles, and typically hatch in about 10 days. Young larvae do not feed, but move to crevices under bark scales or lichens where they spin silky shelters termed hiberniculae. They re-


Chemical control over large areas may not be economically feasible, but can be used to protect high value trees from defoliation and associated damage. The materials listed for chemical control in Idaho are carbaryl, cyfluthrin, and spinosad (several trade names). For proper application timing, always read and follow the recommendations on the label. Wstern Spruce Budworm Adult.

Photo courtesy of forestryimages.org, Univ. of Georgia Archives

main dormant in the silken shelters until the following spring. In later spring (April to May, depending on temperature) the larvae will exit the hiberniculae and migrate to the foliage, where they begin to mine the old foliage or feed on host flowers. After a week or two, they will enter developing buds, hence the activity or process that gives them their name. As new needles lengthen, the rapidly growing larvae continue to feed. They will web the foliage together and feed inside this web. It is at this point that most damage occurs. After approximately 40 days of feeding, the larvae pupate inside the webs, with adults emerging about one week afterwards and the cycle is complete. There is only one generation per year. WSB are important since they can eat all of the new growth produced by the host species. The new foliage/needles are the primary source of food, so the immediate effect of defoliation is a reduction in growth. To the landowner, the defoliation is mainly a loss in aesthetic value. If defoliation continues, more significant impacts will follow, such as death of branch tips and terminals. Seed production can also be impacted, which in

turn can reduce regeneration (we are currently seeing this in eastern Idaho). If the outbreak persists over multiple years, tree deformity, top kill, and tree mortality can occur. Nonfatal attacks, on the other hand, may predispose the trees to attack from bark beetles such as Douglas-fir beetle and fir engraver, which in turn, can lead to tree mortality. WSB like stands that are dense, and dominated by host tree species that have been predisposed to stress conditions. Populations are generally kept low by a combination of predators, parasites, adverse climatic conditions, or inadequate food source. Spiders, insects, and birds are important, natural predators. However, silvicultural or management practices that thin forest stands, convert stands to non-host species, or limit host species to one size may help prevent serious damage. Multiple storied stands with host trees in the understory are especially vulnerable. In landscape situations (near homes), cultural practices such as fertilizing, thinning, or watering that promotes tree vigor can reduce susceptibility and aid the trees in surviving multiple attacks.

Another management control option is Bacillus thuringiensis (BT), a microbial insecticide which is registered for use against WSB. BT is a naturally occurring, relatively host specific pathogen that affects only the larvae of moths and butterflies. It can be used in sensitive areas along streams, lakes, and rivers. Chemical or BT applications can be conducted from the ground or aerially for short term protection. Users should consult State or Federal Forest Health Specialists regarding formulations, dosage, and treatment timing. Some observations suggest that historically, low intensity budworm outbreaks repeatedly

thinned shade tolerant trees in the understory. In combination with more frequent surface fires, these less severe outbreaks probably reduced the likelihood of catastrophic, stand replacing fires or high intensity insect outbreaks. Decades of fire suppression and selective harvesting of non-host species may have modified forest conditions leading to more severe budworm outbreaks. Maintaining a healthy forest is the best way to prevent or reduce WSB outbreak severity. Stands that have been thinned (reducing tree to tree competition) are generally healthier stands. Dense stands can lead to reduced resources for individual trees, and subsequent stress, which may ultimately lead to increased insect and disease outbreaks. For more information on Western Spruce Budworm, see page 106 at http://www.idl.idaho. gov/bureau/ForestAssist/ insect_disease/InsectAndDiseaseFieldGuide.pdf Or go to http://www.fs.fed. us/r6/nr/fid/fidls/fidl-53.pdf for Forest Insect and Disease Leaflets (FIDLs)

Swarm of Western Spruce Budworm adults on cars in Salmon, Idaho, in 2006. Idaho Farm Bureau producer / OCTOBER 2011

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Marketbasket Survey

Global Demand Drives Food Prices Higher in Third Quarter WASHINGTON, D.C.,—Strong global demand, especially for pork and other protein-rich foods, was a primary driver behind higher retail prices at the supermarket during the third quarter of 2011, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $53.12, up $1.95 or about 4 percent compared to the second quarter of 2011. Of the 16 items surveyed, 13 increased, two decreased and one remained the same in average price compared to the prior quarter. “Global demand for meat and dairy products remains strong and continues to influence retail prices here in the U.S.,” said AFBF Economist John Anderson. “Many nations around the world rely on America to provide the food they need to improve their standard of living, particularly through the addition of protein to the diet. Strengthened demand for meats began in 2009, continued through 2010 and remains important as we look ahead to the close of 2011.” Other fac-

tors also came into play. “On-far m product i o n costs for energ y, fertilizer and fuel continue on an upward trend but those costs are largely borne by farmers and ranchers. But, in addition, after food leaves the farm or ranch,

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higher costs for transportation, marketing, processing and storage are added,” Anderson explained. “As long as these costs remain elevated, consumers will continue to feel it in the form of higher food prices at the supermarket.” Meat and dairy products accounted for about 40 percent of the quarter-to-quarter retail price increase. Boneless chicken breasts increased 24 cents to $3.33 per pound, bacon rose 23 cents to $4.41 per pound, sliced deli ham was up 17 cents to $5.43 per pound, shredded cheddar increased 14 cents to $4.70 per pound and whole milk was up 4 cents to $3.66 per gallon. Other items that increased in price compared to the second quarter were Russet potatoes, up 36 cents to $3.43 for a 5-pound bag; Red Delicious apples, up 27 cents to $1.83 per pound; flour, up 21 cents to $2.73 for a 5-pound bag; vegetable oil, up 20 cents to $3.21 for a 32-ounce bottle; eggs, up 13 cents to $1.78 for one dozen; orange juice, up 10 cents to $3.28 for a half-gallon; bagged salad, up 6 cents to $2.73 for 1-pound bag; and bread, up 2 cents to $1.88 for a 20-ounce loaf. “At the beginning of 2011, a number of factors including growing demand pointed to continued increases in retail food prices, especially for meats. But there’s always a lag time as farmers and ranchers increase the size of their herds to meet higher demand,” Anderson explained. “Extreme weather conditions around the nation have further compounded the issue, diminishing production and further increasing costs.” Most items showing an increase in retail price from quarter-to-quarter also showed year-to-year increases. Compared to one year ago, Russet potatoes increased 30 percent; flour was up 27 percent; eggs and vegetable oil were each 26 percent higher. Year-to-year increases were also tallied for bacon, up 21 percent; sliced deli ham and

Idaho Farm Bureau producer / OCTOBER 2011

milk, each up 16 percent; and shredded cheddar cheese, up 15 percent. The total average price for the 16 items was up about 15 percent compared to one year ago. Two items decreased in price: sirloin tip roast dropped 20 cents to $4.28 per pound and ground chuck dropped 2 cents to $3.27 per pound. Toasted oat cereal remained the same in price, at $3.17 for a 9-ounce box. The year-to-year direction of the Marketbasket Survey tracks with the federal government’s Consumer Price Index (http:// www.bls.gov/cpi/) report for food at home. As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped. “In the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said. USDA’s new Food Dollar Series may be found online at http://www. ers.usda.gov/Data/FoodDollar/app/. Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $53.12 marketbasket would be $8.50. AFBF, the nation’s largest general farm organization, has been conducting the informal quarterly marketbasket survey of retail food price trends since 1989. The mix of foods in the marketbasket was updated during the first quarter of 2008. According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 85 shoppers in 32 states participated in the latest survey, conducted in August. Tracking Milk & Eggs - Page 35


Idaho Farm Bureau producer / OCTOBER 2011

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Idaho Farm Bureau producer / OCTOBER 2011

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A large crowd of growers, state officials and others showed up for this year’s Fruit Field Day at the Parma Research and Extension Center. Photo by Steve Ritter

Fruit Research Pays Off For Growers By Jake Putnam PARMA--Tables lined with amber-ripe peaches, purple grapes, red, yellow and green apples are proof positive of a bountiful harvest at the University of Idaho’s Parma Research and Extension Center. On September 20th the Center hosted its annual Fruit Field day in lush orchards to a large and appreciative crowd. In an orchard rows upon rows of harvested fruit were carefully laid out. The number and varieties of fruit surprised those in attendance with everything from grapes, peaches, nectarines to apples, quinces, Asian pears, persimmons and even jujube and haskaps all sampled by school children, farmers and state agriculture officials. The pomology program at Parma is overseen by Professor Essie Fallahi, and each year the event draws hundreds of locals and growers from neighboring states. They 22

come to see new fruits, check out the latest trials of apples, peaches and other commercial crops. They’re interested in new production techniques, including use of growth bio-regulators, and irrigation. “It’s extraordinary and it shows people the great opportunities we have here in Idaho, but also opportunities working with University of Idaho researchers,” said University of Idaho President Duane Nellis. Nellis says the U of I is recognized for its pomology research worldwide. “We’re on the cutting edge with all of these varieties and the general public doesn’t know half of what we do here,” he said. “Producers are catching on and have a sense of the opportunities available here. We want them to take back some of these ideas and start growing some of these crops, it’s just amazing.” For apple producers the highlight of the day

Idaho Farm Bureau producer / OCTOBER 2011

was the orchard tour that demonstrated different types of tree canopies that increase apple production. The technique involves spacing of trees, which can produce apples during the second year instead of the typical fourth year. Fallahi with microphone in hand, told producers touring the apple orchards with him using the new technique they can get immediate returns on capital investments. “The important thing is the trees start producing in their second year and farmers can pay off their loans a lot faster than using traditional techniques,” he said. “By spacing trees closer together, we can use every inch of ground and drop of water efficiently with this technique.” When the state economy slowed in 2008, lawmakers cut higher education budgets, The University of Idaho took the cuts in stride, but worked hard at keeping the research budgets at operable levels.


“One of things that’s encouraging from the last legislative session, despite all of the budget cuts, the one thing they did preserve was the Ag research and Extension Budget,” said President Nellis. “There were no cuts in that. But now we have to start building it back. From the $25 million the University took in cuts, $6 million of that was in Ag Research and Extension the last three years.” Jerry Henggeler is one of Idaho’s largest fruit producers. He said agriculture research stations like Parma are vital for survival in a very competitive industry. “It’s an absolute must,” said Henggeler. “Today we heard Dr. Fallahi talk about all the different varieties and strains of root stocks and new irrigation. Well, what it does is that it shows us what to do and not to do. We can’t afford to make terrible mistakes in the field. We can’t afford to find out that we should have planted two weeks earlier. A little mistake like that can kill an operation.” In uncertain times, when budgets are tight agricultural research becomes more critical according to President Nellis.

“It’s such an important part of our state,” Nellis said. “University research is vital to the state economy. This state is built around these resources. It’s a strength and we have to continue to contribute to do that.” Fruit producers like Henggeler agree. He says he continues to hear the same tired arguments from short-sighted budget critics. “They say things like ‘why do we need to do research in Idaho? They’re doing this in Michigan or New York, California. It’s more complex than that, we have to prove that it will grow and do well in Idaho’s climatic conditions, our soil and hot days, cool nights. It’s an absolute must to spend the money and do the research. It’s a capital investment that pays for itself. Without having solid research from which to make these decisions it’s too risky.” Idaho continues to make inroads into the nation’s fruit market. Fruit grown in Idaho is in high demand at across the nation and it’s because of two simple things according to Fallahi. “The quality of the fruit, including table grapes that we produce in Idaho is outstanding. It has high flavor because of the

long days and cool nights that we have in this region and also because of the outstanding color,” said Fallahi. Hundreds of horticulturists, farmers and foodies gathered to listen to the researchers, tour the facilities and sample the fruit. Many filled plastic bags and took the prized fruit home. Lorraine Baird has visited the center many times, “It’s just so great for the kids to see this and hear what they can do,” she said. Fallahi was elected Vice President of the American Society for Horticultural Science’s International Division. Last year he spent two weeks in China as a guest of the Chinese National Horticultural Association. The Parma Center serves as a testing ground for a national apple rootstock study in cooperation with Cornell University and other top institutions. The center also focuses on Fuji apple irrigation, nutrition, chemical thinning and pesticide trials. The Center’s table grape vineyards led to formation of the Snake River Table Grape Growers Association. They were there displaying their production trials, canopy studies and other production practices. Dr. Fallahi also makes house calls, according to Heneggeler. He says when a question has to be answered, or research done, Fallahi works until it’s done, often on test plots on producer farms. “It’s all time critical, he knows that, he never complains, he just gets it done,” said Heneggeler. Fallahi and the Research Center have done a lot for growers through the years, but Fallahi’s most crowning accomplishment is proving that grapes and exotic fruits can be grown in Idaho.

Dr. Essie Fallahi, left, and UI President Duane Nellis display large bunches of grapes during the University of Idaho’s Parma Research and Extension Fruit Field Day. Photo by Steve Ritter

Idaho Farm Bureau producer / OCTOBER 2011

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World Agricultural Supply and Demand Estimates United States Department of Agriculture September 14, 2011

production changes include 0.2-million-ton increases for both Brazil and Morocco, and a 0.2-million-ton reduction for Uzbekistan.

WHEAT: Projected U.S. wheat ending stocks for 2011/12 are raised 90 million bushels this month with higher expected imports and lower expected food use and exports. Imports are raised 10 million bushels with larger supplies in Canada. Food use is projected 5 million bushels lower in line with revisions to 2010/11 based on the latest and final U.S. Bureau of Census mill grind estimates and reflecting reduced prospects for per capita flour consumption during calendar year 2011. Exports for 2011/12 are projected 75 million bushels lower with larger supplies and exports expected for Canada and the EU27. The season-average farm price for all wheat is projected at $7.35 to $8.35 per bushel, up from last month’s range of $7.00 to $8.20 per bushel supported by higher corn prices.

World wheat trade is raised slightly for 2011/12 with increased imports projected for the United States and Uzbekistan. Global exports are also raised as higher expected shipments from Canada and EU-27 more than offset reductions for the United States and Turkey. Global wheat consumption is increased 1.9 million tons with higher expected wheat feeding in Canada, China, Morocco, and Turkey more than offsetting a reduction for Russia. World wheat ending stocks for 2011/12 are projected 5.7 million tons higher at 194.6 million. At this level, global stocks would be up from 2010/11 and the second largest in the past decade.

Global wheat supplies for 2011/12 are projected 7.6 million tons higher mostly on larger beginning stocks in Canada and increased production for Canada, EU-27, and Ukraine. Beginning stocks for Canada are raised 1.3 million tons and production is raised 2.5 million tons, both reflecting the latest estimates from Statistics Canada. EU-27 production is raised 2.3 million tons with increases for Germany, Romania, France, Spain, and Bulgaria as harvest reports and revisions to official estimates continue to indicate higher yields. Production for Ukraine is raised 1.0 million tons based on the latest harvest reports. Other smaller

COARSE GRAINS: U.S. feed grain supplies for 2011/12 are projected lower this month with reduced corn production as summer heat and dryness continue to be reflected in survey-based yield forecasts. Corn production for 2011/12 is forecast 417 million bushels lower with expected yields down from last month across most of the Corn Belt. The national average corn yield is forecast at 148.1 bushels per acre, down 4.9 bushels from August and 16.6 bushels below the 2009/10 record. As forecast, this year’s yield would be the lowest since 2005/06. Despite the lower yield, production is forecast to be the third highest ever with

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Idaho Farm Bureau producer / OCTOBER 2011

the second highest planted area since 1944. Total corn supplies for 2011/12 are lowered 442 million bushels with a 20-million-bushel reduction in carryin and a 5-million-bushel reduction in expected imports. Beginning stocks for 2011/12 drop with small increases in 2010/11 exports and use for sweeteners reflecting the latest available data. Imports for 2011/12 are reduced with the smaller forecast corn crop in Canada. Supplies for 2011/12 are projected to be the lowest since 2006/07. Total corn use for 2011/12 is projected 400 million bushels lower with tighter supplies. Projected feed and residual use is reduced 200 million bushels mostly reflecting lower expected residual WASDE-498-2 disappearance with the smaller forecast crop. Corn use for ethanol is projected 100 million bushels lower with higher expected corn prices and continued weakening in the outlook for U.S. gasoline consumption as forecast by the Energy Information Administration. Corn exports for 2011/12 are projected 100 million bushels lower with increased supplies and exports expected from Ukraine, Argentina, and Brazil. U.S. ending stocks are projected 42 million bushels lower at 672 million. The stocks-to-use ratio is projected at 5.3 percent, compared with last month’s projection of 5.4 percent. The season-average farm price is projected 30 cents per bushel higher on both ends of the range to a record $6.50 to $7.50

per bushel. Global coarse grain supplies for 2011/12 are projected 3.1 million tons lower with larger barley, sorghum, millet, and oats supplies only partly offsetting the reduction for corn driven by the U.S. changes. Global corn supplies are reduced 4.5 million tons as increases in foreign beginning stocks and production partly offset the reduction in U.S. supplies. Projected global corn production for 2011/12 is lowered 5.9 million tons as a 4.8-million-ton increase in expected foreign output is outweighed by the 10.6-million-ton U.S. reduction. Brazil and Argentina production for 2011/12 are raised 4.0 million tons and 1.5 million tons, respectively, on higher expected area with rising returns for corn in both countries. Ukraine corn production is raised 1.5 million tons based on indications for higher yields. Production is raised 1.0 million tons for EU27 with higher expected yields in France and several countries in Eastern Europe. Production is lowered 1.0 million tons for Canada based on the latest Statistics Canada estimates. Production is also lowered 2.1 million tons for Egypt as lack of government restrictions on planting resulted in a sharp shift in acreage away from corn and into rice. Global coarse grain trade for 2011/12 is raised slightly with increased foreign trade in barley and corn more than offsetting the reduction in U.S. corn shipments. Barley imports are


raised for Saudi Arabia and Syria with larger shipments expected from Ukraine and Russia. Corn exports are raised for Ukraine, Argentina, Brazil, and EU-27. Corn exports are lowered for Canada and Paraguay. Global corn consumption for 2011/12 is lowered 7.3 million tons, mostly reflecting lower expected use in the United States. Foreign corn feeding and consumption are nearly unchanged. World corn ending stocks are projected up 2.9 million tons with increases in South America, Ukraine, and EU-27 more than offsetting the reduction projected for the United States. OILSEEDS: U.S. oilseed production for 2011/12 is projected at 92.4 million tons, up 0.7 million from last month. Soybean production is projected higher, partly offset by declines for peanuts and cottonseed. Soybean production for 2011/12 is projected at 3.085 billion bushels, up 29 million due to higher yields. Soybean ending stocks are projected at 165 million bushels, up 10 million as higher supplies are only partly offset by increased exports. Other changes for 2011/12 include reduced food use of soybean oil reflecting increased use of canola and palm oil, increased use of soybean oil for biodiesel, and reduced food use for 2010/11. Soybean crush for 2010/11 is increased 5 million bushels to 1.65 billion reflecting higher-than expected crush reported for July. With soybean exports unchanged, ending stocks are projected at 225 million bushels, down 5 million from last month. Other changes for 2010/11 include increased use of soybean oil for

biodiesel and reduced food use. Soybean oil used for production of methyl ester was reported record high for July by the U.S. Census Bureau. Soybean oil stocks are projected at 2.84 billion pounds, up slightly from last month. Soybean and product prices are all projected higher for 2011/12. The U.S. season-average soybean price is projected at $12.65 to $14.65 per bushel, up 15 cents on both ends of the range as higher corn prices provide support. Soybean meal prices are projected at $360 to $390 per short ton, up $5.00 on both ends of the range. Soybean oil prices are projected at 55.5 to 59.0 cents per pound, up 0.5 cents on both ends of the range. Global oilseed production for 2011/12 is projected at 453.0 million tons, up 1.5 million tons from last month. Production increases for soybeans, rapeseed, sunflowerseed, and cottonseed are only partly offset by lower peanut production. Soybean production is projected higher for the United States and India. India=s soybean production is raised 0.7 million tons to a record 10.5 million due to higher planted area. Canola production for Canada is increased 0.6 million tons to a record 13.2 million based on higher area and yield reported in the most recent report from Statistics Canada. Harvested area is projected record high despite excessive rainfall and flooding in parts of Saskatchewan and Manitoba that prevented some area from being planted. Canada’s canola production is also raised for both the 2009 and 2010 crops based on the same report. Other changes include higher sunflowerseed produc-

tion for EU-27, higher cottonseed production for China, lower cottonseed production for Pakistan, and lower peanut production for India. SUGAR: Projected U.S. sugar supply for fiscal year 2011/12 is decreased 215,000 short tons, raw value, from last month, due to lower beginning stocks and production. Beet sugar production is lowered 175,000 tons based on lower forecast sugarbeet production. Sugar use is unchanged. LIVESTOCK, POULTRY, AND DAIRY: The 2011 forecast of total red meat and poultry production is raised reflecting higher beef production, but lower pork production. Continued large cow slaughter is expected to boost beef production. A slower pace of slaughter in the third quarter and slightly lower weights due to heat stress are expected to result in lower pork production compared to last month. USDA will release its Quarterly Hogs and Pigs report on September 28, providing an estimate of sow farrowings in June-August and an indication of producer intentions for farrowings into early 2012. Broiler production is about unchanged as an increased fore-

cast of third-quarter production is offset by lower expected production in the fourth quarter. No change is made to turkey production and only a slight revision is made to egg production. For 2012, the beef production forecast is raised but pork and poultry production forecasts are reduced from last month. Larger forecast early year beef production reflects marketing of the large number of calves which are being placed as a result of drought in the Southern Plains. However, production in subsequent quarters will reflect tighter supplies of cattle and lighter expected carcass weights due to the placement of lighter cattle and relatively high feed prices. Pork forecasts are reduced as tight feed supplies dampen hog weights. Poultry production forecasts are reduced as relatively high feed costs limit the sector’s expansion. The egg production forecast is lowered due to lower hatching egg production. Beef import forecasts are lowered in 2011 and 2012 as U.S. cow slaughter remains relatively high. The beef export forecast for 2011 is little changed See AG SUPPLY & DEMAND, page 34

Idaho Farm Bureau producer / OCTOBER 2011

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Cost-of-Production Report: “The Rising Cost of Inputs” By Matthew J. Erickson, Economist American Farm Bureau Federation® As most economists would say, the most certain thing in economics is uncertainty. And so far, 2011 hasn’t steered away from course. In 2011, the global economy has experienced a crisis in the Middle East, a tsunami in Japan, a debt sovereign crisis in Europe, a failed attempt to increase global oil production from OPEC and a budget crisis in the United States. Now, ask yourself: Did you ever predict that these events would ever impact you directly in your pocketbook? If you think these events haven’t affected you, then you must not buy fuel for your car or food at the grocery store (or even food in general). The fact is that no one can hide from higher energy costs whether you’re a farmer or not. With planting season complete, U.S. farmers and ranchers were confronted with a heavy cost burden of getting that commodity into the ground. The premise of this report is to provide an update from the April 2011 Fuel and Fertilizer report and to place a perspective of the costs associated with various inputs by U.S. major field crops.

The Story of Oil Thus far in 2011, daily oil prices have ranged from a low of $83.13 per barrel to $113.39 per barrel, a range of 36 percent. Increases in oil prices were headlined by the continued conflict in the North Africa and Middle East region, the tsunami disaster in Japan, global demand in China and a weak U.S. dollar. Since the beginning of the year, the dollar relative to the Euro has weakened by 9 percent. A weaker U.S. dollar makes dollar denominated commodities less expensive for many foreign buyers to purchase, driving increased global demand. Expectation of oil markets tightening through 2012 by means of world oil demand growth and slowing growth in supply from non-OPEC countries continue to raise forecasted prices for oil through 2012. The 26

July outlook forecast has prices for WTI spot crude oil averaging $98.43 per barrel for 2011 and increasing to $102.50 per barrel in 2012. Currently for 2011, crude oil prices are averaging just short of the $100 per barrel benchmark at $97.98 per barrel. Comparing the current 2011 average crude oil price against the July forecast for 2011 and 2012, respectively, EIA expects average crude oil prices to increase 0.5 percent for the rest of 2011 and 4.6 percent in 2012.

Farm Diesel Prices One major cost farmers and ranchers face during planting and harvesting seasons is farm diesel. Since planting season has ended it only seems appropriate to look at the cost associated to fill up a tractor with farm diesel. Let’s use a tractor with a 270 gallon diesel fuel tank as an example. Using the current cost for Illinois farm diesel at $3.58 per gallon, the cost for each fill-up is approximately $967. Using yearly average farm diesel prices in Illinois for 2010 and 2009, this cost is 33 percent more than the $726 cost to fill up in 2010 and 64 percent more than the $588 cost to fill up in 2009. Now put the situation in perspective and put yourself in the shoes of a farmer during the middle of planting season. Taking the average price of farm diesel reported in Illinois from late April to mid-May of $3.74 per gallon, the cost to fill up a 270 gallon tractor now costs approximately $1,010. This cost is 39 percent higher than the 2010 average and 72 percent higher than the 2009 average. Looking ahead to harvest season, let’s say you own a combine which contains a 277 gallon diesel tank. When farm diesel prices reported in Illinois (excluding forward contracting) reached their 2011 high at $3.76 per gallon in April, it would cost approximately $1,041 every time the combine needed to be filled. Now mind you, this is only for one combine and excludes a second combine and all the other farm machinery needed to complete a successful harvest! Even with farm diesel prices

Idaho Farm Bureau producer / OCTOBER 2011

decreasing slightly in July, it would still cost a farmer with that same combine $992 per fillup. Currently, the average price for farm diesel in Illinois is $3.58 per gallon and $3.48 per gallon in Alabama. Nevertheless, the price of farm diesel over the past couple months has declined with the price of oil. The trend indicates that the price for farm diesel increases/ decreases with the price of oil. By analyzing price trends, the correlation is strong between oil price and farm diesel prices; 92 percent of the farm diesel price in Illinois can be explained by the price of oil and 70 percent of the farm diesel price in Alabama can be explained by the price of oil. As previously mentioned, weekly oil prices have increased 8 percent since the beginning of 2011. Likewise, the monthly price for Illinois farm diesel has increased 17 percent and the monthly price for Alabama farm diesel has increased 18 percent. Expect farm diesel prices to continue to increase with projections of increased oil prices as forecasted by EIA.

Natural Gas Natural gas prices have been below the 5-year average of $6.00 per MMBtu for all of 2011. Since the beginning of 2011, weekly natural gas prices have decreased 5 percent mainly due to an abundance of supply with the shale gas industry developing in the United States. Recently, natural gas remains bearish as production continues to climb, weather becomes milder and nuclear plants return to use after routine spring maintenance. Recently (ending June 2011), working natural gas inventories were at a healthy level of 2.5 Tcf, however, 8 percent below the 2010 end-of-June level. Even with healthy working natural gas inventory levels, global events could tighten the global natural gas market, creating higher prices and increased competition between Europe and Asia. Global events contributing to the shortage include the crisis in the North


Africa and Middle East region, the Fukushima plant disaster in Japan and the global backlash in nuclear energy that has increased the demand for natural gas. Moreover, it is important to keep an eye on the upcoming hurricane season in the United States. In April, Colorado State University predicted that 16 named storms may form in the Atlantic and tropical cyclone activity may be about 175 percent of average.1 If you recall back to December 2005, natural gas prices peaked at $15.39 per MMBtu due to Hurricane Katrina impacting the Gulf Region. With natural gas expected to contribute in a larger capacity in the world markets due to a growing base of resources, competition will increase followed by the potential for higher prices. Natural gas is important for fertilizer production, primarily for ammonia. The average natural gas consumed for every ton of anhydrous ammonia produced is approximately 33.5 MMBtus. Clearly the price of natural gas is closely tied to the production cost of

ammonia as natural gas accounts for approximately 70 to 90 percent the cost of ammonia. In addition, incremental costs for manufacturing, storage and transportation further increase the retail price for fertilizer, making oil prices a secondary factor in the cost structure for fertilizer.

Fertilizer Prices Fertilizer prices for Illinois have increased slightly since the beginning of 2011: Anhydrous ammonia by 3 percent, nitrogen (28 percent) by 13 percent, DAP by 4 percent and potash by 9 percent. Bi-weekly average fertilizer prices in Illinois reported anhydrous ammonia at $801.11 per ton, nitrogen (28 percent) at $380 per ton, DAP at $697.78 per ton and potash at $615.63 per ton. Fertilizer prices for Alabama also increased since the beginning of 2011: Nitrogen (28 percent) by 11 percent, DAP by 4 percent and potash by 15 percent. Weekly average prices in Alabama reported nitrogen (28 percent) at $425.00 per ton, DAP at $722.50 per ton and potash by $640.00 per

ton. One reason fertilizer prices have increased is demand for fertilizer given the current tight supplies for grain commodities, primarily corn. In the current situation of tight supplies for grain, fertilizer is a necessity as acreage production in the U.S. is at a max. Similarly, higher grain prices increase the demand for fertilizer in international markets. Looking ahead to 2012, fluctuations in production costs will depend on fertilizer prices, namely anhydrous ammonia. Many analysts suggest that price movements in anhydrous ammonia can be dictated with supply and demand factors associated with anhydrous ammonia. Taking this into consideration, historical anhydrous ammonia prices for Illinois will be correlated with the historical price of corn (demand factor) and the historical price of natural gas (supply factor) since September 2008. From September 2008 to June 2011, the anhydrous ammonia price to corn price correlation was 0.43. Since corn is an energy in-

See “RISING COST OF INPUTS” page 33

FARM BUREAU MEMBERS Actual Savings of

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27


28

Idaho Farm Bureau producer / OCTOBER 2011


Grain Marketing with Clark Johnston

You Can’t Make Silk Out of a Sow’s Ear some other areas of the country or world that they had used in the past or were currently milling. The plumpness of the kernels as well as the cleanliness of the wheat over all was the two biggest factors.

Clark Johnston

Each year we come to this point in time analyzing the crop that we just harvested trying to determine just where we can sell and at what level all of our hard work is worth. This year, the bids for feed wheat were very competitive right at harvest which enticed possibly a larger amount of local milling wheat into that market than we would normally see. The problem with stripe rust didn’t hurt the quality of the wheat but it looks as though it did reduce the yields somewhat. Overall the crop looks to be a good quality crop with the production a little less than most producers were anticipating. Recently I had the opportunity to tour Southeast Idaho with some flour millers from Mexico. As we visited a couple of farms the producers were harvesting red spring wheat as well as durum wheat. We shelled out a few heads and they were very impressed at the quality of the wheat right in the fields. Their enthusiasm for Idaho wheat continued as we toured three different elevators in different areas of the region. All in all the quality of the wheat they looked at was far better than wheat from

This seems to hold true for most of the customers that use Idaho grain. The others have used the grain for so long they are just accustomed to the quality. There is an old saying that states, “You can’t make a silk purse out of a sow’s ear.” This may sound a little ridiculous but at the same time nothing is truer when it comes to producing a finished product that the consumers will buy. Processors need good products going in order to have good products going out. This doesn’t necessarily mean that you will receive a premium in the market for what you have raised but, it does mean that when push comes to shove the better quality products will be able to move to market. In the past we have talked about knowing just what you have stored in your bins. At a time when every cent counts to your bottom line it is vital to be able to represent your inventory correctly. This is especially true when trying to build that personal relationship necessary to either break into or keep your position in a niche market as well as selling into a fast moving market. Recently the markets experienced a rather dramatic correction. However, all is not lost if you know exactly what you have to sell. It may be necessary to market differently than ever before. You may need to sell your inventory in smaller lots as smaller markets may not be able to buy the entire bin all at once. Watch the momentum studies to give yourself a little added knowledge as to the direction the

market may move as well as just how far it has the potential to move. Around the third week in September both the wheat and corn markets reached points in the RSI study showing at least the possibility of a floor in the market. Both feeders and producers of grain should look at these indicators and possibly make adjustments to your marketing plan. An example: We are hearing from producers with wheat in their bin that now are looking at the need to move the wheat out in order to fill their bin with grain corn at harvest. Looking at the momentum studies it may not be a good time to price the wheat but rather you may need to move it into a facility that has the room for you to store while you wait for a more enticing bid. Merchandising your grain isn’t an exact science but, by using the tools available to you and knowing the quality of the grain in your bin you will be able to outline your plan and then implement that plan while making adjustments along the way. And let me mention just one more thing, you will also have the opportunity to feel good about it. Clark Johnston is a grain marketing specialist who is on contract with the Idaho Farm Bureau. He is the owner of JC Management Company in Northern Utah. He can be reached at clark@jcmanagement.net

Idaho Farm Bureau producer / OCTOBER 2011

29


Carpet

Laminate

Vinyl

New Idaho Farm Bureau Member Benefit

Some stores will have designated staff to handle Farm Bureau members so members should identify themselves at the beginning of the process. This will prevent them from having to switch staff in the middle of the selection process. If you have any questions, call 208-239-4289.

Idaho Falls

Carpet One Floor & Home 405 West 17th Street (800) 227-7381 or 529-1951

Coeur D’Alene

Area Rugs

Hardwood

Boise

Panhandle Carpet One Floor & Home 739 West Appleway Avenue (866) 497-5088

Neef's Carpet One 1507 Main Street (208) 343-4679

Skelton's Carpet One Floor & Home 222 1st Street (208)746-3663

Pioneer Carpet One Floor & Home 326 2nd Avenue South (866) 497-8176 or 734-6015

Twin Falls

Neef's Carpet One 9601 West State Street (208) 947-1800

Pocatello

McCall

Sandpoint Furniture Carpet One Floor & Home 401 Bonner Mall Way (208) 263-5138

Lewiston

L & K Carpet One Floor & Home 129 North Second Avenue (208) 233-6190

30

Ceramic Tile

Idaho Farm Bureau producer / OCTOBER 2011

Lake Fork Design Center 13872 Highway 55 (208) 634-4599

Ponderay


American farm bureau federation news

Hot, Dry Weather Shrinks Nation’s Corn Crop

WASHINGTON, D.C. – Due to a hot, dry summer over much of the Corn Belt, farmers were expecting the Agriculture Department to show a big drop in its estimate for the nation’s corn crop in its September Crop Production report released and that’s just what happened. In its latest forecast, USDA pegged the U.S. corn crop at just shy of 12.5 billion bushels, down 3 percent from its August estimate. USDA is estimating yields to average 148.1 bushels per acre, down 4.9 bushels from its August projection. If realized, this would be the lowest average yield in the United States since 2005.

tion. “The average yield of 148.1 bushels per acre is pretty much what analysts were expecting. The theme of this marketingyear hasn’t changed. We still have a very tight corn crop this year.” While USDA is forecasting a drop in supply, it is also projecting a drop in demand for exports, ethanol use and feed use. Still, Davis cautions that supplies are very tight and demand remains strong. “If we have any more weather difficul-

“Due to excessive heat during pollination for most of the nation’s corn crop, everyone was expecting USDA to reduce its average corn yield in the September crop report from its August estimate,” explained Todd Davis, crops economist with the American Farm Bureau Federa-

ties, this crop might get even smaller. We still need every bushel we can harvest this year,” Davis said. “USDA’s October crop will also be important because that’s when adjustments to harvested acreage will be made. We could see a drop in harvested acres, which would make an already tight supply situation even tighter.” Davis said higher prices are having the expected impact of lowering demand. In its September report, USDA reduced corn exports by 100 million bushels from August, cut feed and residual demand by 200 million bushels and slashed ethanol demand by 100 million bushels. “The drop in ethanol demand is not surprising. Demand for gasoline is down now that the busy summer driving season is coming to an end,” Davis said. “Because of high corn prices and lower demand for ethanol, profit margins for ethanol producers will be very tight.”

County Happenings

Fremont County Presidents Val Hammond presenting the scholarship check to Jocelyn Allen.

Teton County FB President Ron Hansen, left, presents a scholarship check to Eli Dery of Driggs. Idaho Farm Bureau producer / OCTOBER 2011

31


Stallman

Continued from page 2

when it comes to matters that are close to our hearts. That’s why I especially enjoy this time of year. If you’re a Farm Bureau member, you probably know exactly why. For many folks, autumn represents back-to-school, fall festivals and cooler weather. For us Farm Bureau policy nerds (speaking for myself, of course), autumn means it’s nearing time for most of our state annual meetings. I can almost hear the momentum building out in the countryside.

As I travel to these annual meetings, I listen to Farm Bureau members talk a lot about agriculture issues. Most of the time what they have to say is good, some of the time it’s not. That’s the beauty of Farm Bureau, there’s always room for healthy debate. But in all of my travels, I have never met a farmer without something to say, or more importantly, not willing to roll up his or her sleeves to help further our grassroots process.

Country Strong As Farm Bureau state delegates prepare for their annual meetings, they are well aware of the importance of their deliberation and votes on potential policy. Those very policy recommendations have been formed and mulled over at the county level by their farmer peers, and, if successful, will get forwarded to the American Farm Bureau Federation’s annual meeting for consideration. These grassroots members are the backbone of our organiza-

tion who will play a significant role at their state meetings as they consider important policy positions on environmental, trade, immigration, farm policy and other issues. They will roll up their sleeves, get their hands dirty and carry on the Farm Bureau tradition of grassroots excellence. It’s this commitment of our grassroots members who play an active role in U.S. agriculture policymaking that makes Farm Bureau one of the most successful advocacy organizations in this nation.

Priestley

Continued from page 2

Jobs in agriculture are physically demanding, conducted in all seasons and often transitory. To most U.S. residents seeking employment, these conditions are not attractive. Yet, for many prospective workers from other countries, these jobs present real economic opportunities. Employment of those who are in the U.S. illegally is a violation of federal law and consequences for employers can be severe. Effective reform must begin at the border, with greater efforts to prevent the entry of illegal non-residents. While employing illegal non-residents is a violation of law, determining the legal status of prospective employees can be difficult, if not impossible, for employers. An employer is strictly limited in what he or she may ask of prospective employees to determine if they are authorized to work. If the employer requests more or different documents than allowed by law, or more than the original documents provided by a prospective employee, then the employer could be subject

32

to a Justice Department investigation or a lawsuit for unlawful discrimination. When no domestic workers can be found to work on farms and ranches, agricultural employers may recruit and hire temporary foreign workers under the H-2A temporary agricultural worker program. But the H-2A program is bureaucratic, expensive, does not cover all parts of agriculture and does little to encourage grower participation. It requires employers to provide free housing and transportation from a worker’s home country and to pay a base wage rate that is historically well above market levels, making it expensive. The program properly requires employers first to recruit domestic workers before bringing in foreign guest workers, but it unreasonably favors domestic workers even after the H-2A workers arrive and begin to work at an agricultural workplace. In 2008, reforms to the program were implemented in an effort to make it more ef-

Idaho Farm Bureau producer / OCTOBER 2011

ficient and less burdensome to employers, but on Feb. 12, 2010, the Labor Department issued a final rule that repealed those modest changes and reinstated provisions that make the program even more difficult and expensive. There are also major difficulties associated with the government E-Verify system. The program originated to help verify the legal status of potential workers. However, it requires an employer to first hire the worker and then wait several weeks for documents to be processed. If the system shows a worker is here illegally, the decision can be challenged, prolonging the process for several more weeks. By that time the employer has invested potentially thousands of dollars in training the employee, who then must be let go. U.S. agriculture has clearly demonstrated a strong need for a guest worker program. It’s now up to government to come up with a viable program that works for both employer and employee.


RISING COST OF INPUTS

Continued from page 27

tensive crop, this demand relationship would suggest that higher corn prices indicate the need for more corn acreage, thus requiring more use of nitrogen fertilizer. On the supply side, the anhydrous ammonia price to natural gas price correlation was 0.65 from September 2008 to June 2011. As mentioned above, natural gas serves as a key input, accounting for approximately 70 to 90 percent the cost of ammonia. So, higher natural gas prices would suggest higher costs of ammonia production. June monthly prices for corn, natural gas and anhydrous ammonia have been above their September 2008 to June 2011 average: corn by 61 percent, natural gas by 2 percent and anhydrous ammonia by 18 percent. From September 2008 to September 2009, natural gas prices and anhydrous ammonia prices generally decreased with one another. However, beginning in November 2009, natural gas and anhydrous ammonia prices generally increased with one another. But beginning in August 2010, anhydrous ammonia began to increase as the price for corn increased while natural gas prices decreased. The fall of 2010 was the time that we learned that stocks were low for corn, creating a higher demand for more corn acreage for the 2011 planting year, thus creating a higher demand for nitrogen. In fact, from August 2010 to June 2011, the anhydrous to corn price correlation increased to 0.91 indicating that higher corn prices lead to a higher demand for nitrogen. By looking at the EIA forecast for natural gas prices above, prices are not expected to increase drastically through 2012. However, with stocks to use for corn expected to be relatively low for the 2011-12 marketing year (currently projected at 6.4 percent), expect corn prices to stay above average, followed by slight increases in anhydrous ammonia prices.

Fertilizer and Commodity

Fuel

Impacts

by

With the spring planting season completed, energy prices were burdensome for farmers and ranchers across the United States. How-

ever, the overall cost is highly variable depending on the commodity and area planted. To be completely clear, this exercise analyzes the costs of production for five major U.S. field crops on a dollar per planted acre basis and does not attempt to look at the specific commodity budget or a specific state. USDA’s Economic Research Service (ERS) compiles specific commodity production reports that analyze cash costs associated with various commodities on a dollar per planted acre basis. It is important to note that the forecasts below were developed in May 2010. Corn, soybeans, wheat, rice and cotton will be examined to serve a geographical representation of agricultural commodities throughout the United States. Corn is an energy intensive crop, especially for fertilizer, with nitrogen being the primary cost. Fertilizer and fuel related costs for corn are expected to increase this year compared to 2010. USDA-ERS forecasts for the 2011 operating year that total fertilizer costs for corn will average $127.00 per acre and $46.65 per acre for fuel related items, up 27 percent and 31 percent, respectively, from 2010. Corn seed costs are also expected to undergo dramatic increases from 2010 to 2011. U.S. average seed costs are forecasted to average $94.72 per planted acre for 2011, up 14 percent from 2010. Furthermore, total operating costs for corn are expected to average $324.96 per planted acre, up 18 percent from 2010. Looking ahead to 2012, USDA forecasts indicate that per acre costs are expected to increase from 2011 to 2012: fertilizer by 3 percent, fuel items by 4 percent and seed costs by 1 percent. Overall, total operating costs are expected to increase approximately 2.1 percent from 2011 to 2012.

Wheat (All Types) Production costs for wheat are highly variable depending on the variety of wheat grown and the region planted. Regardless, wheat producers should expect increases in per acre costs of production for 2011 and heading into 2012.

Fertilizer and fuel related costs for wheat are expected to be the largest contributors of input cost increases between 2010 and 2011. USDA-ERS forecasts for the 2011 operating year that fertilizer costs for wheat will average $52.20 per acre and $28.16 per acre for fuel related items, up 27 percent and 31 percent, respectively, from 2010. Seed costs for wheat are expected to increase from 2010 to 2011, however only very slightly and below 2008 and 2009 levels. U.S. average seed costs for wheat are forecasted to average $13.38 per planted acre for 2011, up 14 percent from 2010 but down 16 percent from 2008. Furthermore, total operating costs for wheat are expected to average $127.16 per planted acre, up 18 percent from 2010 and up 1.2 percent from 2008. Even though seed costs for wheat are expected to be lower than 2008 levels, increases in fertilizer and fuel related items are the main drivers in input cost increases for wheat between 2008 and 2011. Looking ahead to 2012, USDA forecasts indicate that per acre costs for wheat are expected to increase from 2011 to 2012: fertilizer by 3 percent, fuel items by 4 percent and seed costs by 1 percent. Overall, total operating costs are expected to increase approximately 2.5 percent from 2011 to 2012.

Cost of Production Summary for U.S. Major Field Crops The effects of higher oil prices are reducing profits to the agricultural sector. From seed to fertilizer, each commodity is projected to experience higher yearly production costs from 2010 to 2011. In addition, USDA forecasts are suggesting slightly higher prices for 2012, similar to EIA’s forecasts for higher oil and natural gas prices. Overall, U.S. farmers and ranchers experienced higher input costs due in large part to higher energy prices. In addition, these higher costs will reduce the record net farm income for the agricultural sector that is projected by USDA-ERS.

Idaho Farm Bureau producer / OCTOBER 2011

33


AG SUPPLY & DEMAND

Continued from page 25

from last month as lowerthan-expected second quarter exports are largely offset by higher forecast exports in the second half of the year. The pork export forecast for 2011 is lowered as second-quarter exports were smaller than expected. The broiler export forecast is also reduced on lower-thanexpected shipments in the second quarter. No change is made to red meat or poultry exports for 2012. The cattle price for 2011 is about unchanged as a higher third-quarter price is offset by

a lower fourth-quarter price. Cattle prices for 2012 are forecast slightly lower as larger marketings pressure cattle prices early in the year. Hog prices are raised slightly from last month for 2011 but are unchanged for 2012. Broiler prices are lowered for 2011 as supplies remain relatively large and demand relatively weak. Prices for 2012 are raised from last month on lower production. The milk production forecast for 2011 is raised as the dairy herd has been expanding at a

more rapid rate than expected. However, the forecast for 2012 is reduced as higher forecast feed prices reduce the rate of growth in milk per cow. Commercial exports for 2011 are raised on the strength of current product exports. For 2012, fat basis exports are lowered, largely on slightly weaker butter exports. Skim solids imports are raised for both 2011 and 2012. Cheese prices for 2011 are forecast lower, but nonfat dry milk (NDM) and whey prices are forecast higher on the strength of relatively strong exports. Butter prices

remain unchanged. The Class III price is lowered, based on the lower forecast cheese price, but the Class IV price forecast is unchanged from last month. For 2012, butter and cheese prices are unchanged but NDM and whey prices are forecast higher. The Class III price is unchanged, but the Class IV price forecast is raised. The all milk price forecast is lowered to $20.15 to $20.35 per cwt for 2011, but is unchanged at $17.80 to $18.80 per cwt for 2012.

New Legislation Aims to Prevent EPA Regs on Farm Dust WASHINGTON, D.C.—New legislation introduced by Sen. Mike Johanns (R-Neb.) that would prevent the Environmental Protection Agency from regulating naturally occurring farm dust is welcome news for the nation’s farmers and ranchers, according to the American Farm Bureau Federation.

crops, livestock moving from place to place and people driving down dirt roads are just a few of the ways dust occurs naturally on farms and in rural areas. “The current rules pertaining to dust are adequate,” said Stallman. “Increased regu-

“Regulation of farm dust by EPA could severely hamper the ability of farmers and ranchers to meet the world’s food needs,” said AFBF President Bob Stallman. EPA is reviewing existing regulations for particulate matter, which includes soot and dust. Soot is generated by car emissions and factories; dust occurs naturally. According to Stallman, planting and harvesting 34

Idaho Farm Bureau producer / OCTOBER 2011

lation of farm dust could result in decreased productivity and higher food prices, coupled with lost jobs in the rural economy. Moreover, the scientific basis for establishing such regulation has been called into question and it has not been demonstrated that the benefits of EPA regulation would outweigh the costs.” The new legislation introduced by Johanns prevents EPA from making dust regulations even more stringent, while taking health concerns into consideration. “State and local governments would have the authority to regulate dust in localized areas if necessary,” Stallman explained. “But a national standard would not be imposed.”


Cattle Outlook September 16, 2011 The average price of choice beef at retail during August was $4.872 per pound, up 9.1 cents from the month before, up 49.8 cents from August 2010, and tied with the record set in May. Pork prices also were record high during August. Unsurprisingly, the Consumer Price Index for food was also record high in August. USDA’s September WASDE report predicted the feed and residual use of corn for the 2011-12 marketing year will total 4.7 billion bushels, down 6% from the year before and the lowest for any marketing year since 1995-96. Add in other grains plus DDGS and total feed and residual for the coming year is the equivalent of 6.38 billion bushels, which is 4.4% less than the past year and the lowest of any marketing year since 2002-03. USDA is predicting 2012 red meat and poultry production will total 92 billion pounds, down only 0.9% from this year and the lowest since 2009. That’s 4% less feed to produce 1% less meat. Either USDA is wrong, or feed efficiency is going to skyrocket in the coming year, or we face the possibility that USDA’s forecast of $7/bu. for this fall’s corn crop is too low. Livestock prices have been record high this year, but profits are far from records. It seems likely that 2012 will bring more livestock price records, but because of high feed costs, little or no profit. Friday morning the choice boxed beef carcass cutout value was $185.79/cwt, up $5.67 from last week. The select carcass cutout was up $2.56 from the previous Friday to $173.68 per hundred pounds of carcass weight. The choice-select spread hasn’t been this large since December 2010.

The 5-area average price for slaughter steers sold through Thursday of this week on a live weight basis was $117.23/cwt, up 49 cents from last week. Steers sold on a dressed weight basis averaged $186.67/cwt, 12 cents lower than the week before. This week’s cattle slaughter totaled 653,000 head, up 13.2% from the week before which was low because of Labor Day, but down 3.1% compared to the same week last year. The average steer dressed weight for the week ending September 3 was 849 pounds, up 4 pounds from the week before, 3 pounds heavier than for the same week in 2010, and above year-earlier for the 39th week in a row. Cash bids for feeder cattle around the country this week mostly ranged from $3 higher to $5 lower than the week before with more markets down than up. Prices this week at Oklahoma City were steady to $8 lower with price ranges for medium and large frame #1 steers: 400-450# $144-$146.50, 450-500# $136-$147, 500-550# $137-$145.50, 550-600# $132-$143.50, 600-650# $128-$141.25, 650700# $125-$139.50, 700-750# $132.85-$135.75, 750-800# $130-$136, 800-900# $125.25-$129.25 and 900-1000# one group at $118.25/cwt. The October fed cattle futures contract ended the week at $118.50/cwt, up 5 cents from last week’s close. December cattle gained 70 cents to end the week at $118.95/cwt. February live cattle settled at $121.70/cwt, down 12 cents from last Friday. From University of Missouri

Tracking Milk and Egg Trends For the third quarter of 2011, shoppers reported the average price for a half-gallon of regular whole milk was $2.46, up 15 cents from the prior quarter. The average price for one gallon of regular whole milk was $3.66, up 4 cents. Comparing per-quart prices, the retail price for whole milk sold in gallon containers was about 25 percent lower compared to half-gallon containers, a typical volume discount long employed by retailers. The average price for a half-gallon of rBST-free milk was $3.40, up 12 cents from the last quarter, about 40 percent higher than the reported retail price for a half-gallon of regular milk ($2.46).

(third quarter of 2010), the retail price for regular milk in gallon containers was up about 16 percent while regular milk in halfgallon containers rose 19 percent. The average retail price for rBST-free milk increased 1 percent compared to the prior year while organic milk was up 2 percent. For the third quarter of 2011, the average price for one dozen regular eggs was $1.78, up 13 cents compared to the prior quarter. The average price for a dozen “cage-free” eggs was $3.10, down 10 cents compared to the prior quarter but 75 percent higher than regular eggs. Compared to a year ago (third quarter of 2010), regular eggs increased 26 percent while “cage-free” eggs increased 7 percent.

The average price for a half-gallon of organic milk was $3.71, up 6 cents compared to the prior quarter, about 51 percent higher than the reported retail price for a half-gallon of regular milk ($2.46). Compared to a year ago Idaho Farm Bureau producer / OCTOBER 2011

35


Farm Bureau Members Pay Less For Choice Hotels!

FARM BUREAU COMMODITY REPORT GRAIN PRICES

Portland:

White Wheat 11% Winter 14% Spring Corn

Ogden:

White Wheat 11% Winter 14% Spring Barley

A $40 room will be closer to

Pocatello:

$32 A $60 room will be closer to

White Wheat 11% Winter 14% Spring Barley

Burley:

White Wheat 11% Winter 14% Spring Barley

Nampa:

White Wheat (cwt) (Bushel)

$48 A $90 room will be closer to

Lewiston:

White Wheat Barley

8/24/2011 N/A 8.25-8.44 N/A 316.50-319.25

Farm Bureau Discount Code

00800286

advanced reservations required

N/A - .59 to - .58 N/A N/A

6.55 6.65 8.30 12.10

-

6.90 7.44 8.67 11.67

6.45 6.40 7.95 11.67

- .45 - 1.04 - .72 Steady

7.00 7.18 8.65 12.50

6.55 6.43 8.03 11.50

-

10.50 6.30

10.42 6.25

- .08 - .05

6.85 221.50

6.30 211.50

- .55 - 10.00

LIVESTOCK PRICES

Under 500 lbs 500-700 lbs 700-900 lbs Over 900 lbs

Feeder Heifers Under 500 lbs 500-700 lbs 700-900 lbs Over 900 lbs

Holstein Steers Under 700 lbs Over 700 lbs

Cows

Utility/Commercial Canner & Cutter

Stock Cows Bulls

Slaughter

BEAN PRICES: Pinto Pink Small Red

Idaho Farm Bureau producer / OCTOBER 2011

.45 .75 .62 1.00

130-188 119-153 107-137 110-121

9/21/2011 128-181 116-160 101-133 101-118

-

2 3 6 9

to to to to

-7 +7 -4 -3

115-167 112-148 103-130 85-109

119-170 114-144 103-125 90-114

+ 4 to + 3 + 2 to - 4 Steady to - 5 +5

75-110 70-104

78-92 74-92

+ 3 to - 18 + 4 to - 12

63-84 55-74

51-71 42-67

- 12 to - 13 - 13 to - 7

675-1200

N/A

N/A

60-94

61-89

+ 1 to - 5

40.00 N/A N/A

42.00-45.00 44.00-45.00 42.00-45.00

Compiled by the Idaho Farm Bureau Commodity Division 36

.70 .80 .72 .35

Trend 8/23/2011

1.800.258.2847

6.58 7.66-7.86 9.46 N/A

Trend

7.25 7.45 9.02 12.45

Feeder Steers

$72

9/21/2011

+ 2.00 to 5.00 N/A N/A


IDaho Hay Report

Fri Sep 16, 2011 USDA Market News Compared to last week, all grades of Alfalfa steady to firm. Timothy for export steady in a light test. Wheat straw steady. Trade active with good demand. Retail/ feed store/horse steady in a light test. Buyer demand good with light to moderate supplies. All prices are dollars per ton and FOB unless otherwise stated. Tons Price Wtd Avg Comments Alfalfa Large Square Supreme 990 240.00-250.00 247.88 3,600 250.00-250.00 250.00 Organic Premium 1,000 215.00-215.00 215.00 Baled Too Dry Good 1,000 230.00-230.00 230.00 Organic Utility 600 190.00-200.00 195.00 Alfalfa Small Square Premium 125 240.00-240.00 240.00 Retail/Stable

Timothy Grass Large Square Premium Timothy Grass Small Square Premium Good/Premium Prairie Grass Large Square Utility Oat Large Square Good Wheat Straw Large Square Good Fair

175 225.00-225.00 225.00

Export

125 300.00-300.00 300.00 100 285.00-285.00 285.00

Retail/Stable Retail/Stable

400 125.00-140.00 132.50 300 150.00-185.00 167.50 200 75.00-75.00 6,000 60.00-60.00

75.00 Del 60.00 Del

Alfalfa hay test guidelines, (for domestic livestock use and not more than 10% grass), used with visual appearance and intent of sale Quantitative factors are approximate and many factors can affect feeding value.

POTATOES FOR PROCESSING September 20, 2011 IDAHO---Open-market trading by processors with growers was moderate. Open-market prices paid to growers for Russet Burbank potatoes, field-run, bulk, per cwt, unless otherwise stated: French-Fry quality 2.50 over the field contract price. Buying interest remains high with both the dehydrators and the French-Fry plants. Quality is generally good. The size profile continues to vary.

5 Year Grain Comparison Grain Prices................09/25/2007...................09/26/2008.................. 09/22/2009..................09/21/2010.................. 09/21/2011 Portland: White Wheat..................... 9.55................................6.65 ..............................4.40 ............................6.51 ............................ 6.58 11% Winter...................9.62-9.67.......................7.56-7.76 ....................4.78-5.04 ....................... N/A ....7.66-7.86 14% Spring........................ 9.46................................ 9.15 .............................6.31 ............................ N/A .........................9.46 Barley (ton)....................260-261 .........................N/A .............N/A ................. N/A .......................N/A Corn.................................. 179.25 .............238-242.50....................155.50-157 .............209-209.75 ....................N/A Ogden: White Wheat..................... 7.99................................6.26 ..............................4.20 ............................6.05............................. 6.55 11% Winter....................... 7.86...............................6.76 .............................3.97 ............................6.14 ........................... 6.65 14 % Spring.......................7.71................................ 7.93 .............................5.18 ............................7.21 ........................... 8.30 Barley.................................11.25...............................9.80 ..............................4.99 ............................6.70 ............................12.10 Pocatello: White Wheat.....................8.00...............................5.90 ..............................4.10 ............................5.85............................. 11% Winter........................7.71................................6.42 ..............................3.56 ............................5.97 ........................... 14% Spring.........................7.76................................ 7.71 .............................5.13 ............................7.14 ........................... Barley................................ 10.65.............................. 9.15 ...........................4.48 ..........................6.46 ..........................

6.45 6.40 7.95 11.67

Burley: White Wheat..................... 8.20...............................5.55 ..............................3.99 ............................5.80............................. 6.55 11% Winter....................... 7.83...............................6.38 ..............................3.78 ............................6.05 .......................... 6.43 14% Spring.........................7.71................................7.36 ..............................5.00 ............................7.17 ........................... 8.03 Barley................................. 9.00...............................8.75 ..............................4.50 ..........................6.75 ........................... 11.50 Nampa: White Wheat (cwt)......... 13.68.............................. 9.17 .............................5.68 ............................9.42............................ 10.42 (bushel)........... 8.21...............................5.50 ..............................3.41 ............................5.65............................ 6.25 Lewiston: White Wheat..................... 8.90...............................6.45 ..............................4.13 ............................6.40............................ 6.30 Barley............................... 261.50...........................212.50 ...........................91.50 .........................146.50......................... 211.50 Bean Prices: Pintos...........................26.00-27.00........................40.00.............................32.00.............................. N/A.........................42.00-45.00 Pinks...................................N/A.................................N/A......................... 32.00-34.00........................ N/A.........................44.00-45.00 Small Reds..........................N/A.................................N/A......................... 32.00-35.00........................ N/A.........................42.00-45.00 ***

IDAHO Milk production up 3.9 Percent September 19, 2011 Idaho milk production during August 2011 totaled 1.19 billion pounds, a 3.9 percent increase from the same month last year, but down slightly from July 2011, according to the National Agricultural Statistics Service. Average milk production per cow in August 2011 was 2,040 pounds, up 40 pounds from last year’s level. The average number of milk cows during August was 582,000 head, up 11,000 from August 2010. Milk production in the 23 major States during August totaled 15.3 bil-

lion pounds, up 2.2 percent from August 2010. July revised production at 15.4 billion pounds, was up 0.5 percent from July 2010. The July revision represented a decrease of 45 million pounds or 0.3 percent from last month’s preliminary production estimate. Production per cow in the 23 major States averaged 1,810 pounds for August, 18 pounds above August 2010. The number of milk cows on farms in the 23 major States was 8.47 million head, 102,000 head more than August 2010, and 3,000 head more than July 2011. Idaho Farm Bureau producer / OCTOBER 2011

37


5 Year livestock comparison .....................................09/25/2007...................09/26/2008.................. 09/22/2009..................09/21/2010.................. 09/21/2011 Under 500 lbs................103-140 ......................89-114 ..........................90-134 ...................115-145 .................... 128-181 500-700 lbs.................... 102-131 .........................83-110 ..........................85-114 .......................101-137........................ 116-160 700-900 lbs..................... 94-119 .........................87-104 ...........................80-96 ......................95-112 ...................... 101-133 Over 900 lbs...................85-108...........................82-101.............................78-87 ......................... 80-102..........................101-118 Feeder Heifers Under 500 lbs................100-129..........................82-101 ..........................83-112 ...................105-141.........................119-170 500-700 lbs.....................95-130 ..........................82-97 ..........................79-97 .....................96-121 ...................... 114-144 700-900 lbs..................... 92-110............................75-96 ...........................68-89 ........................ 90-108......................... 103-125 Over 900 lbs...................85-104............................78-95 ..........................73-78 ......................... 84-100.......................... 90-114 Holstein Steers Under 700 lbs..................69-86 ...........................40-64 ...........................45-69 ...........................65-91 .........................78-92 Over 700 lbs....................66-86 ..........................47-70 ............................50-66 ......................... 65-82 .........................74-92 Cows Utility/Commercial...........35-60.............................36-64.............................33-54.............................47-67.............................51-71 Canner & Cutter..............30-50.............................30-51.............................20-48........................... 40-55............................42-67 Stock Cows......................540-850 ......................650-850 ...................... 650-850 ....................800-1000..........................N/A Bulls – Slaughter............43-64.............................50-72.............................45-64............................47-77 .........................61-89

Idaho Cattle on Feed Up 3% from Previous Year

September 23, 2011 Cattle and calves on feed for the slaughter market in Idaho from feedlots with a capacity of 1,000 or more head on September 1, 2011 totaled 195,000 head, up 3 percent from the previous year, according to the National Agricultural Statistics Service.The cattle on feed inventory was unchanged from August 1, 2011. Placements of cattle in feedlots with a capacity of 1,000 or more head during August totaled 43,000 head, down 7 percent from August 2010 placements. Marketings of cattle from feedlots with 1,000 head or more during August totaled 42,000 head, down 3,000 head from a year ago. Other disappearance totaled 1,000 head during August. Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on September 1, 2011.The inventory was 5 percent above September 1, 2010. This is the third highest September 1 inventory since the series began in 1996. Placements in feedlots during August totaled 2.25 million, 1 percent below 2010. Net placements were 2.18 million head. During August, placements of cattle and calves weighing less than 600 pounds were 715,000, 600-699 pounds were 370,000, 700-799 pounds were 477,000, and 800 pounds and greater were 690,000. Marketings of fed cattle during August totaled 2.05 million, 7 percent above 2010. Other disappearance totaled 72,000 during August, 53 percent above 2010.

Keller

Continued from page 2 a top rate of 45 percent. These increased financial burdens are compounded with the regulatory and mandated benefits burdens being imposed by the same administration. And yet, agriculture will do its share as it always does. Agriculture, better than any other industry, understands business and economic cycles. Fortune is just one harvest away, but so is scarcity. We understand tightening belts and pulling up our bootstraps to go to work, especially in tough times. The motto taught to us by our forbearers’ rings true to our ears: “ fix it up, wear it out, make it do, or do without.” We live by it.

World trade is expanding. Poverty is declining. There are growing demands for higher protein and value-added foods. Health and sanitation is improving. People are living longer. All need to eat and wear clothes. They will demand more and more and our farmers and ranchers will produce to those needs. All these issues cause uncertainty for the future. But for agriculture there are some brighter spots on the horizon. Inflation and interest rates are expected to be low in the United States. The relatively stable Middle East and expectations of slower world growth have brought sharp reductions in

energy prices. The dollar is stable to falling. According to the USDA’s forecast, a weak dollar and low interest rates provide plentiful credit for record U.S. exports in 2012. Demand for food and fiber will remain strong. For agriculture, 2012 will bring opportunities. Use these coming months to gather market information from reliable sources. Study the issues. Keep an ear to the ground. Be cautious and look for the silver lining in the dark storm clouds that are gathering.

We understand tightening belts and pulling up our bootstraps to go to work, especially in tough times. The motto taught to us by our forbearers’ rings true to our ears: “fix it up, wear it out, make it do, or do without.” We live by it. 38

Idaho Farm Bureau producer / OCTOBER 2011


Classifieds Animals

Real Estate

APHA Broodmares. Excellent bloodlines. Great conformation Super dispositions, Hard reduction. Great prices. Stallion Service Available-$400 fee. LFG. Caldwell, Id. 208454-2454

Modular Home for Sale - 2000 model Skyline in like new condition with hardi siding and composition roof. 2bdrm, 1bath. 16w x 56 long, Vaulted ceiling. All appliance’s included and the house must be moved. Price $26,000. Middleton, Id. Call (208) 5856690.

Farm Equipment MF 165 tractor with loader and blade. Tractor runs great, loader not so well. Needs help! $5000 or Best offer. Rupert, Id 208436-9985 or 219-9034 Balewagons: New Holland self-propelled or pull-type models. Also interested in buying balewagons. Will consider any model. Call Jim Wilhite at 208-880-2889 anytime Case 580k ext. hoe 4x4 backhoe with 18”,24” buckets+2’ smooth ditch bucket $22k, backhoe forks $250, 1969 GMC 5yd. air brakes dump truck $1700, Broyhill 3pt. hook-up 80 gallon sprayer $850, 4-5’ harrow sections with puller $500, 10’ Triple K $900, 20’ 3 axel bumper pull eq. trailer $1500, Construction staging 6-3’widex10’high staging with braces $50 a piece $300, 4’ snow plow off a Kawasaki mule $400, 6’ Gannon roll-over ripper blade $650, Weiser, ID 549-1551

Miscellaneous 6.5 HP Cummins water pump like new $175. Northstar 2400psi Pressure Washer $200. Reese 15K 5th wheel hitch and rails $300. 16” saddle, good condition $300. Transit, tripod and measuring stick $150. Ashton Id. 208-652-7214 Morbark PS-8 Portable Post Peeler. Very good condition. $9,000. Lewiston Id. 208743-5501 Hardly used 5000 W Coleman Generator. Blackfoot, Id 208-406-7134

FREE CLASSIFIED ADS FOR IDAHO FARM BUREAU MEMBERS

send to: dashton@idahofb.org

Trailers 1992 Trails West Santa Fe II – 3 horse slant load trailer. Carpeted walk-in tack room with saddle racks, etc. Bearing buddies on all wheels. Stored inside most of the time. Asking $5200. Obo. Twin Falls, Id. 208734-7640

Vehicles 1958 Edsel 4-door. Lewiston Id. 208-7435501

Wanted Box Tops for Education to help our small, country Southside Elementary. Thank you for helping our students! Liz Robinson, 1440 Dufort Rd, Sagle, Id 83860 Paying cash for German & Japanese war relics/souvenirs! Pistols, rifles, swords, daggers, flags, scopes, optical equipment, uniforms, helmets, machine guns (ATF rules apply) medals, flags, etc. 549-3841 (evenings) or 208-405-9338. Old License Plates Wanted: Also key chain license plates, old signs, light fixtures. Will pay cash. Please email, call or write. Gary Peterson, 130 E Pecan, Genesee, Id 83832. gearlep@gmail.com. 208-285-1258

DEADLINE DATES:

ADS MUST BE RECEIVED BY

November 20 FOR

NEXT ISSUE.

SEND US YOUR CLASSIFIED AD FREE TO IDAHO FARM BUREAU MEMBERS! send to: dashton@idahofb.org FREE CLASSIFIEDS Non commercial classified ads are free to Idaho Farm Bureau members. Must include membership number for free ad. Forty (40) words maximum. Non-member cost- 50 cents per word. You may advertise your own crops, livestock, used machinery, household items, vehicles, etc. Ads will not be accepted by phone. Ads run one time only and must be re-submitted in each subsequent issue. We reserve the right to refuse to run any ad. Please type or print clearly. Proof-read your ad.

Mail ad copy to: GEM STATE PRODUCER P.O. Box 4848, Pocatello, ID 83205-4848 or email Dixie at DASHTON@IDAHOFB.ORG Name: __________________________________________________________________________ Address: _________________________________________________________________________ City / State / Zip: __________________________________________________________________ Phone: _____________________________________ Membership No. ___________________ Ad Copy: ________________________________________________________________________ _______________________________________________________________________________ Idaho Farm Bureau producer / OCTOBER 2011

39


$500 Farm Bureau Rebate

New Idaho Farm Bureau Program With General Motors

Starting September 14, 2011, eligible Farm Bureau members in Idaho can receive a $500 discount on each qualifying 2011 or 2012 model year Chevrolet, GMC or Buick vehicle they purchase or lease. This Farm Bureau member exclusive is offered for vehicles purchased or leased at participating dealerships through Farm Bureau’s—GM PRIVATE OFFER at a participating GM dealership. Twenty-six GM models are part of the program:

Chevrolet Chevrolet Avalanche Chevrolet Aveo Chevrolet Camaro Chevrolet Colorado Chevrolet Corvette Chevrolet Cruze Chevrolet Equinox Chevrolet Express Chevrolet HHR Chevrolet Impala Chevrolet Malibu Chevrolet Silverado Chevrolet Suburban Chevrolet Tahoe Chevrolet Traverse 

GMC GMC Acadia GMC Canyon GMC Savana GMC Sierra GMC Terrain GMC Yukon GMC Yukon XL

Buick Buick Enclave Buick LaCrosse Buick Lucerne Buick Regal

To qualify for the offer, individuals must have been a Farm Bureau member for at least 60 days prior to the date of delivery of the vehicle selected. Members simply go to www.fbverify.com, enter their membership number (i.e. 123456-01) and zip code, and print off a certificate to take to the dealership.

Very Important: Discount must be processed at time of purchase and after September 14, 2011.

The Farm Bureau discount is stackable with some incentives and non-stackable with others. See dealership for full details.

Call Joel Benson (208) 239-4289 for any assistance. If Joel is unavailable contact Peggy Moore (208) 239-4271 or Dixie Ashton (208) 239-4279.


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