FarmWeek April 18, 2011

ONLINE COURSE demand is skyrocketing at the U of I and elsewhere as more students complete degrees over the Internet. ....5

THE U.S. EPA has provided dairymen a bit of relief from the Oil Spill Prevention, Control, and Countermeasure (SPCC) rule. .......3

WHEAT STREAK mosaic virus has been was confirmed in Southern Illinois, but the outbreak apparently isn’t widespread. ..........6

Monday, April 18, 2011

Two sections Volume 39, No. 16

State owes more than $4.8 billion in unpaid bills Schools, universities top state’s IOU list

BY KAY SHIPMAN FarmWeek

The state was awash in more than $4.8 billion in unpaid bills as of April 12, Comptroller Judy Baar Topinka recently detailed to Sen. John Sullivan (D-Rushville).

Sullivan, who released the information last week, had sought a detailed breakdown of the state’s unpaid bills from the comptroller.

“Illinois needs to pay its bills, and pay them on time,” Sullivan said in a written statement.

‘Illinois needs to pay its bills, and pay them on time.’

— John Sullivan State Senator

He thanked the comptroller for providing the information about the unpaid bills and the payment waiting periods.

The $4.8 billion is the amount owed from the state’s main bank account. The state also owes at least another $1.8 billion in corporate tax refunds and payments for the state’s group

health insurance. Combined, the state’s backlog totals more than $6 billion.

“This is not a partisan issue,” Brad Hahn, a spokesman for the comptroller, told Far mWeek. “Right now we have schools, not-for-profits, social agencies already providing services to the state and waiting more than five months for payment.”

Topinka’s breakdown showed $2.23 billion in bills has been due for more than three months.

Schools are owed the most. The state owes elementary and secondary schools more than $1 billion in late payments, while universities are owed more than $800 million. (See accompanying graphic) Sullivan criticized the state for “forcing local schools, businesses, and service providers to carry its debt, using them much like a credit card.“ Hahn added, “The state is spending more than it is bringing in. The comptroller has said, ‘Until we change the state’s spending habit, we will continue to see this, and it’s unacceptable’.”

The comptroller and others are working to bring public attention to the state’s debt, according to Hahn.

“When people realize how deep this is and the precariousness of the situation, they get mad. Anything this office can do we’ll do to raise awareness,” Hahn said.

Periodicals: Time Valued

House, Senate approve ag spending cuts Cuts totaling $2.6 billion in USDA spending were included in the continuing resolution passed by Congress and sent to President Obama Friday to keep the government running through the end of the fiscal year, Sept. 30.

The reductions were part of a $28 billion package agreed on earlier in the week

by Obama, House Speaker John Boehner (R-Ohio), and Senate Majority Leader Harry Reid (D-Nev.) The measure, which provides more than $1 trillion in funding but is about $38 billion less than last year’s

spending level, passed in the House with a 260-167 vote and in the Senate by an 81-

19 vote.

Cuts in spending for stewardship programs included $119 million from the Wetlands Reserve Pro-

FarmWeek on the web: FarmWeekNow.com

gram (WRP), $80 million from the Environmental Quality Incentives Program (EQIP), and $39 million from the Conservation Stewardship Program (CSP).

The WRP pays landowners to preserve wetlands. EQIP provides funds to share the cost of preventing runoff from fields and feedlots, and CSP is used to provide financial and technical assistance to eligible producers to conserve and enhance

soil, water, air, and related natural resources on their land.

The original spending levels were $726 million for WRP, $1.2 billion for EQIP, and $600 million for CSP. Other significant cuts include $118 million for the Natural Resources Conservation Service and $134 million for the Biomass Crop Assistance Program (BCAP).

Agriculture Secretary Tom Vilsack last week said he planned to meet with program directors to discuss how to implement the cuts with only half the fiscal year remaining.

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

FarmWeek Page 2 Monday, April 18, 2011

GOVERNMENT

Quick Takes WIND-POWER CAPACITY GROWS — Last year, the United State’s wind-power capacity grew by 15 percent to 40,181 megawatts, and it could be larger this year, according to the American Wind Energy Association (AWEA), which released its annual report recently.

Wind energy accounted for 26 percent of new generation capacity last year, according to the report.

“We remain on track to produce 20 percent of America’s electricity by 2030 with wind, as laid out by the Department of Energy during the (George W.) Bush administration,” said Elizabeth Salerno, AWEA chief economist.

ILLINOISANS WORK LONGER TO PAY TAXES — Friday (April 15) was the day Illinois residents had worked long enough to pay this year’s federal, state, and local taxes, according to the Tax Foundation. The national average “tax free” day was April 12.

Illinois has the dubious honor of having the ninth latest Tax Freedom Day out of all 50 states.

“The national date for Tax Freedom Day 2011 is later than last year largely because of income changes rather than statutory tax law changes,” said Kail Padgitt, the foundation’s staff economist.

High-income states pay much more in federal taxes and often have higher state and local taxes as well.

Connecticut is the last in the nation to observe Tax Freedom Day (May 2) with 122 days required for state taxpayers to pay the year’s tax bill.

Other states with late celebrations include New Jersey (April 29), New York (April 24), Maryland (April 17) and Washington (April 16).

PURPLE FIELDS NO CAUSE FOR CONCERN — If you have seen a lot of the color purple in fields recently, don’t be alarmed.

Aaron Hager, University of Illinois Extension weed specialist, said several winter annual weed species have begun to flower early this spring.

The two species producing the purple patches are henbit and purple deadnettle. Both have square stems characteristic of the mint plant family.

“A timely harvest in 2010 may have helped promote earlier fall emergence of several winter annual weed species, which could have improved their overwintering survival,” Hager said. “These splashes of color are now livening up the otherwise drab Illinois landscape.”

Pre-plant tillage or herbicides can provide good to excellent control of the colorful annuals.

(ISSN0197-6680) Vol. 39 No. 16

April 18, 2011

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Lawmakers ask LaHood, Hannig to resolve the ‘for-hire’ issue

BY KAY SHIPMAN FarmWeek A letter seeking a permanent resolution to a new interpretation of federal transportation regulations last week was sent to U.S. Secretary of Transportation Ray LaHood and Illinois Secretary of Transportation Gary Hannig by members of Rep. Tim Johnson the Illinois congressional delegation.

“The potential effects to Illinois agriculture ... are really dramatic from this designation,” U.S. Rep. Tim Johnson, the letter’s author and an Urbana Republican, told FarmWeek last week.

In addition to Johnson, the letter was signed by Sen. Mark Kirk and U.S. Reps. Jerry Costello, Don Manzullo, Randy Hultgren, Bobby Schilling, John Shimkus, Aaron Schock, and Adam Kinzinger.

The new federal interpretation

Share your safety audit experiences Farm Bureau members who have undergone newentrant safety audits are asked to share their experiences with Adam Nielsen, Illinois Farm Bureau director of national legislation and policy development.

Nielsen may be contacted at 309-557-3152 or by email at anielsen@ilfb.org. means Illinois farmers with cropThe congressional delegashare leases who truck their land- tion noted the change was made lords’ share of grain would be without input from the agriculconsidered “for-hire carriers” tural community and resulted in and would no longer qualify for “new burdensome regulations an agricultural exemption from ... and drastically (will) change more stringent trucking rules. several decades of successful Johnson noted “nothing has regulatory exemptions.” changed” to cause the new regIllinois Farm Bureau officers ulatory interpretation. and staff have discussed the “We are opposed to this arbiissue with FMCSA and Illinois trary expansion of FMCSA (Fed- Department of Transportation eral Motor Carrier Safety Admin- officials. But the matter istration) rule enforcement on remains unresolved. farmers,” the letter stated.

Without the agricultural “We urge you to permanently exemption, farmers with cropreverse the new interpretation of share leases would need to these redesignations that are tem- obtain a commercial driver’s porarily ‘on-hold,’ as farmers license (CDL) and follow drug under crop-sharing agreements and alcohol screening and testshould maintain these exemping rules. The new interpretations,” the lawmakers wrote to tion does not impact farmers the transportation secretaries. who cash rent farmland.

Governor announces new Japanese relief plan Gov. Pat Quinn Friday announced an Illinois-based relief program for Japan and said he envisions donations of

FarmWeekNow.com You may view video of the Japanese aid news conference at FarmWeekNow.com

grain from farmers during the 2011 harvest.

Calling Japan our “biggest ag customer,” Quinn said, “Our business community and our farmers are all working together to help (the Japanese) get

back on their feet.”

Quinn was joined at a Chicago news conference by Illinois Director of Agriculture Tom Jennings and farm industry representatives, including Illinois Farm Bureau President Philip Nelson.

Jennings said grain from the 2011 harvest would be donated by farmers and collected by grain elevators in the state. He said grain donations would be turned into cash at elevators and forwarded to the American Red Cross, earmarked for Japanese relief.

In addition to anticipated

grain collections, Quinn announced the immediate donation to Japan of 2,000 hi-tech personal radiation monitors from the Illinois Emergency Management Agency. Caterpillar Logistics will provide transportation of the equipment to Japan.

Quinn recognized IFB and Country Financial for earlier donations to the governor’s relief program for Japan.

Nelson said IFB and the Illinois commodity groups will make decisions on how to proceed with this new initiative.

SOFT GOING

STAFF Editor Dave McClelland (dmcclelland@ilfb.org) Legislative Affairs Editor Kay Shipman (kayship@ilfb.org) Agricultural Affairs Editor Martin Ross (mross@ilfb.org) Senior Commodities Editor Daniel Grant (dgrant@ilfb.org) Editorial Assistant Linda Goltz (Lgoltz@ilfb.org) Business Production Manager Bob Standard (bstandard@ilfb.org) Advertising Sales Manager

Richard Verdery (rverdery@ilfb.org) Classified sales coordinator

Nan Fannin (nfannin@ilfb.org) Director of News and Communications

Dennis Vercler Advertising Sales Representatives

Hurst and Associates, Inc. P.O. Box 6011, Vernon Hills, IL 60061 1-800-397-8908 (advertising inquiries only) Gary White - Northern Illinois Doug McDaniel - Southern Illinois Editorial phone number: 309-557-2239 Classified advertising: 309-557-3155 Display advertising: 1-800-676-2353

Gary Dolloff, left, and Jeff Hartwig, both employees of Evergreen FS, refill a sprayer tank with a herbicide as Dolloff prepared to finish spraying an 80-acre field near Colfax in McLean County. Evergreen FS as of last week sprayed about 500 acres of an expected 10,000 acres for the year. Dolloff described driving on the ground in this field like “boating on a lake with no waves,” referring to the flat, soft ground. (Photo by Ken Kashian)

Page 3 Monday, April 18, 2011 FarmWeek

GOVERNMENT

State lawmakers hustle to meet Treasurer makes changes to link-deposit program Friday legislative deadline Local governments, cemetery regulations part of the mix

BY KAY SHIPMAN FarmWeek

Lawmakers faced a full plate of issues, including many controversial ones, before last Friday’s deadline to pass legislation.

Illinois Far m Bureau opposed an effort in the Senate to consolidate or eliminate units of local government.

Amendment 1 to SB 173 would establish a commission to create a binding recommendation listing of units of local governments, excluding school and community college districts, to be abolished or consolidated, according to Paul Cope, IFB assistant of state legislation.

The commission would be required to have three public hearings and to file its recommendation with the General Assembly by April 1, 2012.

If a unit of local government is slated to be abolished or consolidated, that would be accomplished one year after the report is submitted unless the General Assembly disapproves of that recommendation within 60 days of the report being filed by the commission, Cope explained.

Originally, the proposal had been held in the Senate Local Government Committee.

It was resurrected as an amendment and passed by the Senate Executive Committee late in the week and was awaiting action by the Senate at presstime Friday.

IFB supported a bill — which was passed by the Senate — to resolve problems with the Cemetery Oversight Act.

SB 1853, sponsored by Sen. Emil Jones III (D-Chicago), exempts the greatest number of cemeteries from licensing by the Illinois Department of Financial and Professional Regulation (IDFPR) and excludes all association, fraternal, municipal, township, and religious cemeteries, according to Vicki Hand, legislative chairman for the Illinois Cemetery & Funeral Home Association, based in Homewood.

The bill would return the oversight of care funds to the comptroller’s office and would eliminate a mandated cemetery oversight database because the existing state death records database could be adapted for IDFPR use.

“The original law was r ushed through in a politicized environment, and was a gross overreaction to an isolated incident at the Burr Oak Cemetery,” Hand said.

“Unless significant changes are made, there will be many cemetery abandonments in Illinois, and limited cemetery resources will be needlessly redirected away from cemetery maintenance and instead spent on various governmental fees and other costs,” she said.

IFB opposed HB 1600 (which passed in the House by a 73-43 vote) which would ban trans fats in restaurants and school vending machines by 2013 and in school cafeterias by 2016.

Under the bill, the Illinois Department of Public Health would be responsible for enforcing the ban.

“IFB opposed the bill because we have concerns with banning a specific ingredient in food products,” said Bill Bodine, IFB associate director of state legislation.

Illinois State Treasurer Dan Rutherford is changing the state’s link-deposit programs, following a 90-day moratorium and review of each program.

Rutherford is expected to announce additional details today (Monday) during a Bloomington news conference.

Overall, the changes better reflect the current market, according to the treasurer’s staff.

Underused programs were eliminated, and redundant programs were consolidated.

For example, an agriculture storm and drought program was combined with a community disaster program, known as Community Invest: Disaster Recovery Program. That program will serve farmers and homeowners who are coping with drought or natural disasters.

Treasurer Before reopening the programs, RutherDan Rutherford ford had a volunteer audit committee review each program, and he said he plans to review each one again in six months.

The reopened programs FarmWeekNow.com will reduce interest rates You can listen to Treasurer available for borrowers.

Dan Rutherford’s new conferThe ag programs, known ence on farm loans at as Ag Invest, offer separate annual operating, long-term, FarmWeekNow.com and green-energy programs.

Mahomet-based Farm Credit Services of Illinois provided the treasurer with comments on how to improve the program and make it more useful to farmers, said Judy Elliott, the vice president of finance.

Those recommendations included raising the maximum limits to $200,000 per individual and $400,000 per farming operation and ensuring the program has a line-of-credit option that allows farmers to draw on funds only when needed instead of receiving all the money at one time, Elliott explained.

“We’re (Farm Credit Services of Illinois) very glad he made the changes,” Elliott said.

“The Illinois Bankers Association (IBA) is very pleased with the changes to the link-deposit programs. However, we think it needs a little further review,” Debbie Jemison, IBA vice president of communications and marketing, told FarmWeek.

The most significant revisions that will benefit lenders were made to the ag annual operating loan program, according to the IBA. — Kay Shipman

EPA removes milk, milk containers from spill regulation plans The U.S. Environmental Protection Agency (EPA) last week announced dairymen no longer need to cover milk, milk product containers, and milk production equipment in compliance plans for the Oil Spill Prevention, Control, and Countermeasure (SPCC) rule.

In numerous comments submitted to EPA, Illinois Farm Bureau had opposed milk’s inclusion in the regulations, said Nancy Erickson,

IFB director of natural and environmental resources.

“We pushed it hard. It’s a win,” Erickson said of the exemption.

EPA noted the exemption potentially saves the dairy and milk industries more than $140 million annually.

In response to feedback from the ag community, EPA determined an unintended result of the current rules that were designed to prevent oil spill damage to inland waters and shorelines put unjustifiable burdens on dairy farmers, according to the agency.

“After working closely with dairy farmers and other members of the agricultural community, we’re taking common

sense steps to exempt them from a provision in this rule that simply shouldn’t apply to them,” EPA Administrator Lisa Jackson said in a written statement.

Because some dairies and milk facilities may still have oil storage thresholds that are subject to SPCC regulations, EPA also is amending the rule to exclude milk-storage capacity from a facility’s total

oil storage capacity calculation.

SPCC regulations require facilities, including farms, with above-ground oil storage capacity of more than 1,320 gallons or completely buried oil storage capacity greater than 42,000 gallons to create and implement plans to prevent and respond to oil spills.

The rules also apply to facilities with onsite fuel stor-

age that reasonably could be expected to discharge oil into waters of the U.S. Farms that meet the storage threshold or qualify with a “reasonable expectation of a discharge” must prepare and implement a response plan to be kept at the farm and have a secondary containment structure around their tanks or use double-walled tanks, according to EPA. — Kay Shipman

President Obama signs repeal of 1099 reporting requirement President Barack Obama last week signed into law legislation officially repealing the 1099 reporting requirement included in last year’s health care law.

Under terms of the repeal, businesses no longer will be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in

any year, beginning in 2012.

“Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork,” said the president.

Farm Bureau supported the 1099 repeal.

FarmWeek Page 4 Monday, April 18, 2011

COMMODITIES

‘Jekyll and Hyde’ weather pattern limits fieldwork

BY DANIEL GRANT FarmWeek

Illinois farmers are off to their best start planting corn in six years with 4 percent of the crop in the ground as of the first of last week.

Corn planting progress at the same time last year, and in 2006, was just 1 percent complete while no corn was planted statewide the first 10 days of April from 2007 through 2009, according to the National Agricultural Statistics Service Illinois field office.

The best start to corn planting in Illinois so far this

millennium was in 2005 when 14 percent of the crop was in the ground as of April 10.

“We just started (Wednesday, April 13) and the ground is working really nice,” said David Serven, a Knox County farmer and Illinois Farm Bureau District 8 director.

“But the ground still is not very warm yet.”

Average topsoil temperatures on Thursday were between 50 and 54 degrees in Northern Illinois, 50 and 56 degrees in Central Illinois, and 54 and 58 degrees in Southern Illinois, the Illinois

State Water Survey reported.

Many farmers in a bestcase scenario typically like to wait until the soil temperature is at least 55 degrees before planting corn.

“Everybody is just starting to get going,” Serven said. “The last two (springs) were so wet we never got into the field until the last half of the month. But the 15th is where we like to start” planting corn.

Oat planting as of the first of last week — at 50 percent complete — also was ahead of the five-year average pace of 33 percent.

But fieldwork came to a screeching halt in many portions of the state on Friday as a cold front brought chilly temperatures and showers with the possibility of heavy rain and some severe weather into Saturday, particularly in Southern Illinois.

“In Washington County, there is next to no fieldwork done,” said John Brink, a farmer from Richview. “Each week it seems we have Jekyll and Hyde weather.

“For instance, we had highs in the low 80s last Saturday (April 9) and this Saturday (April 16) the tempera-

ture is supposed to be in the low- to mid-40s for a high.”

The temperature this week was predicted to warm back up into the 60s and 70s for much of the state, although there are more chances of showers.

Elsewhere, severe weather last week killed six people in Arkansas and Oklahoma while the Plains reportedly endured its driest fourmonth period since the Dust Bowl era in the 1930s.

The percentage of wheat rated poor or very poor in Kansas last week increased from 32 to 36 percent.

Proposed dairy wins court case; future still uncertain Traditions South Dairy, a proposed operation that would be located near Nora in Northwestern Illinois, won a court case recently that would allow construction at the site to resume.

The future of the dairy, however, remains uncertain as the operation still has not received clearance from the Environmental Protection Agency (EPA) to resume construction.

The Illinois Supreme Court recently upheld a decision rendered in December by an Illinois appellate court (which agreed with a prior decision by a Jo Daviess

County circuit court) to deny a petition by the group Helping Others Maintain Environmental Standards (HOMES) to stop construction of the dairy.

Attorney Donald Manning, who represents A.J. Bos and his proposed Traditions South Dairy, said the Supreme Court decision effectively ends all legal efforts by HOMES to stop construction of the dairy.

“It is over,” Manning told the Freeport Journal-Standard. “(HOMES) can’t stop us through the courts.

“We won in the trial court, we won in the appellate court,

and now the Supreme Court has made its decision,” he continued. “There is no other

state agency. HOMES previously attempted to sue the Illinois Department of Agri-

‘We won in the trial court, we won in the appellate cour t, and now the Supreme Court has made its decision.

There is no other avenue of appeal.’

— Donald Manning attorney for Traditions South Dairy

avenue of appeal.”

The Supreme Court also rejected a request by HOMES to allow the group to sue a

culture (IDOA) for allegedly violating the Livestock Management Facilities Act when IDOA approved the project.

Alfalfa producers capture top dollar with PEAQ program With high-quality alfalfa capturing premiums of nearly $50 a ton, it’s time for producers to start measuring their alfalfa in order to determine the best time to harvest the first cutting, said Mike Hutjens, University of Illinois

professor of animal sciences emeritus.

“There is a science to harvesting quality alfalfa hay,” Hutjens said. “It starts with a good, old-fashioned yardstick and a trip to the field, and ends with a little work

on the Internet.”

Once measurements and evaluations are obtained, Hutjens recommended producers enter the information into the Predictive Equations for Alfalfa Quality (PEAQ) website {http://peaq.traill.uiuc.edu/}.

This site calculates the relative forage value (RFV).

RFV is similar to relative forage quality (RFQ) for the first cutting of alfalfa of the season, Hutjens said. Firstcutting alfalfa needs to be harvested in the bud stage as soon as the RFV/RFQ in the field reaches 180 to 190.

Researchers from Illinois, Wisconsin, and Minnesota recommend this be done in order to achieve high-quality hay and haylage and to set up the cutting schedule for the rest of the growing season.

High-quality forage can reduce the amount of corn, which currently is priced above $7 per bushel, and protein supplement needed as a source of rumen fermentable carbohydrates and protein sources.

For each one-point increase in RFV/RFQ, the alfalfa hay equivalent may be worth $1 to $1.10 more per ton.

For example, an RFQ of 140 could be valued at $154 per ton compared to alfalfa with an RFQ of 180 valued at $198 a ton on a hay equivalent basis.

PEAQ uses plant height (measured in inches) and maturity (pre-bud, bud, or flower stage) to estimate the RFV/RFQ. Producers can more accurately gauge when to begin the first crop harvest by determining the RFV of standing alfalfa, Hutjens said.

“You have to be ready to roll to most effectively use this method,” he said.

“Remember, the RFV drops about five points every day with good growing conditions.

“Harvesting alfalfa can be an economically more important decision than planting corn when the alfalfa is ready to be harvested,” he added.

Nic Anderson, business developer for the Illinois Livestock Development Group, said the Supreme Court decision set a precedent for the state’s livestock industry.

“It clears a path for others to follow” when it comes to properly siting new livestock facilities, Anderson said.

“Really, that’s what this case was about.”

The dairy, which would be located on the Jo DaviessStephenson county line, is permitted to house as many as 4,500 milking cows under the IDOA approval. That would make it the largest dairy in the state.

The largest dairy currently in operation in Illinois is Stone Ridge Dairy near Mansfield. That dairy was built in 2002 and houses about 3,100 cows, according to the Stone Ridge Dairy website.

Bos’ attorney said his client plans to resume construction on the 1,400-acre property. But an exact timeline to complete the dairy has not been established, the Journal-Standard reported.

EPA as of last week had not granted permits for construction to resume at the site. There reportedly is concern the site of the proposed dairy sits on fractured bedrock (karst), which could allow groundwater contamination below the containment ponds.

Bos, who is from California, was unavailable for comment last week but previously told FarmWeek he was drawn to the Illinois location for his new dairy because of feed availability and a diversified market for milk.

Illinois Farm Bureau supported the project. — Daniel Grant

Page 5 Monday, April 18, 2011 FarmWeek

EMERGING ISSUES

Enrollment explodes in U of I courses taught via Internet

BY KAY SHIPMAN FarmWeek

Online classes are multiplying on the University of Illinois’ virtual campus, and student demand for courses taught over the Internet shows no signs of slowing, said Heather Cupps-Miller, U of I program director for online and continuing education.

“This (student demand) is not going to come down,” said Cupps-Miller, who works with many programs across the Urbana campus.

The U of I isn’t unique.

Illinois colleges and universities reported offering 10,734 online class sections that attracted 254,200 students last fall.

This was a 15 percent increase over enrollment for the previous fall, according to a new report entitled “Distance Education Enrollments at Illinois Colleges and Universities.“ The report is available online at {www.ivc.uillinois.edu/pubs/enrollPDF/Fall10}.

The growing demand illustrates a need for broadband across Illinois, especially in rural areas. “Once they (rural residents) get broadband, the

University of Illinois students on the Urbana campus and elsewhere are increasing demand for courses offered via the Internet. The trend is expected to continue. (Photo courtesy U of I)

sky’s the limit. They are able to obtain a degree or pick and choose among the opportunities,” Cupps-Miller said.

People who aren’t familiar with classes taught over the Internet or who haven’t taken one recently probably would be surprised by the types of online students and the instructional technology they’re using.

Cupps-Miller emphasized

the U of I online courses are not independent study. Contrary to the perception that online courses are not ones of high quality, each U of I online course is developed over four to eight months by a team of online and continuing education educators, she added.

In addition, U of I online courses are taught using a variety of methods, depending

upon the topic and course.

Some online courses allow students to work at any time.

This may include online reading, prerecorded lectures, and posted discussion boards among students.

Other courses are taught online at a set date and time with students logging on for live interaction with fellow classmates and the instructor.

This includes a lecture and discussions with students being able to hear one another and speak to each other through microphones.

Some courses combine both methods and are thought to be the most effective method of online teaching, Cupps-Miller noted.

She credited course quality and live interaction as two factors driving student demand, especially among working professionals who are pursuing graduate degrees. She noted agribusiness companies “really support the existing programs because of the flexibility” for their current employees.

Demand and enrollment “is heavy in graduate education,” she said. “There is a need for advanced degrees in plant breeding” and other agricul-

ture- and conservation-related fields of study. For information, go online to {www.online.uillinois.edu}.

Online course flexibility also is attracting resident students who live on the Urbana campus. Online courses offer those students an opportunity to fit a course into their schedules even as campus construction projects have reduced the availability of lecture halls and classrooms.

Another attractive factor is the cost. Online students pay the equivalent of the traditional tuition rate per credit hour.

However, they are not charged campus fees, such as those for student health and recreational services.

Online courses “end up being cheaper because they don’t pay those fees because they don’t use those services,” Cupps-Miller explained. Outof-state online students are not charged out-of-state tuition, she added.

Online students may not be able to use the McKinley Health Center or other campus facilities, but they do have full access to the university library and online resources, CuppsMiller said.

Local Food Working Group seeks to collaborate for farmers Farmers are the key ingredient to the local food movement and the focus of the Local Food Working Group that met last week in Bloomington.

“How can we, through collaboration, work together and enhance our programs?” Cynthia Haskins, Illinois Farm Bureau manager of business development and compliance, asked working group members.

Haskins reported she is focusing on opportunities to link farmers with a variety of buyers of local food products.

For example, more than 70 farmers attended a recent oneday workshop to meet retail and foodservice buyers from the St. Louis area.

“The day was packed with information that farmers wouldn’t typically have access,” said Haskins, who coordinated the event.

The Illinois Department of Commerce and Economic Opportunity (DCEO) is working to enhance online information about buyers’ requirements through a new “I-Supply” website, said Tim Lindsey, DCEO director of energy and sustainable business programs.

Lindsey envisioned the new website providing people with basic requirements of what is needed to sell to buyers along with contact information.

On the education and training front for farmers and

growers, University of Illinois Extension is readying an educational program, dubbed MarketReady, which is related to its popular MarketMaker food industry database.

John Pike, U of I Extension educator, outlined the program designed for farmers. He said it will be divided into two curriculums: one for selling products to restaurants and the other for selling to wholesalers, grocery stores, and food service industries.

Pike noted the program also would help farmers decide whether to enter those markets. “Growers would have information and (gain) the understanding to determine if

this is a market they would fit,” he said.

Rich and Dar Knipe, Extension specialists, reported on some new features and some being planned for MarketMaker.

Recently, farmers have been able to add to their MarketMaker profiles if they are willing to sell to school districts, and schools are able to search the database for those farmers, according to Dar Knipe.

Electronic trade alerts are a future possibility for MarketMaker participants, she added.

Registered buyers could distribute an electronic alert seeking a certain product, and farmers could register to

receive certain trade alerts and be notified when those are issued, Knipe explained.

The Working Group includes: Christina Rogers, rural affairs policy adviser for Lt. Gov. Sheila Simon; Illinois Rural Development Director Colleen Callahan; Richard Weinzierl, U of I Extension entomologist; Richard Warner, director of Center for Community Action; and Jim Fraley, IFB livestock program director.

Advisory members include DeLayne Reeves and Larry Aldag, both with the Illinois Department of Agriculture’s bureau of marketing and promotions. — Kay Shipman

June 15 deadline

Rural Development adds flex-fuel pumps to eligible renewable energy projects The Rural Development program that paid for upgraded grain driers, wind turbines, and geothermal systems along with other energy improvements across rural Illinois now may defray the cost of installing flexible fuel pumps at small businesses in rural areas.

Dallas Tonsager, undersecretary for Rural Development, announced last week flex-fuel pumps, also known as blender

pumps, are eligible for grants and guaranteed loans under the existing Rural Energy for America Program (REAP).

“Blender pumps are part of the (energy) efficiency system,” Tonsager said during a teleconference. “We believe fuel pumps are a unique need.”

Nationwide, Rural Development is offering $61 million in guaranteed loans and $42 million in grants for eligible renewable energy and energy-

efficient projects in rural areas and communities of fewer than 50,000 residents.

States will receive a portion of those funds, but Tonsager did not have the state-by-state allocations.

The rules and application forms are similar to those used previously, and all applications are due to state Rural Development offices by June 15.

Rural Development officials were unsure what budget cuts

may be made to REAP funding. “It remains to be seen what will happen,” Tonsager told reporters. “We don’t know what (funding) level will be occurring. We’ve seen strong support for REAP.” Illinois applicants have been successful in obtaining grants and loans through REAP. In November, Rural Development awarded $6.7 million in energy grants and loans to Illinois recipients

in 56 counties.

Nearly a third used loan guaranteed funds in combination with grants to finance energy improvement projects, such as more efficient grain driers.

Information about the REAP program is available online at {www.rurdev.usda. gov/BCP_ReapResEei.html} or by calling the Illinois Rural Development office at 217403-6200. — Kay Shipman

FarmWeek Page 6 Monday, April 18, 2011

COMMODITIES

Feed wheat could ease corn supply concerns, temper prices

BY DANIEL GRANT FarmWeek

The fact that the price of wheat last week dropped below the price of corn for the first time in 15 years occurred with little fanfare.

Futures prices for both crops late last week still were above $7 per bushel.

However, the unusual shift in the corn/wheat price relationship could be a signal that corn prices, which earlier this month surpassed the record ($7.65) set in June 2008, may have peaked and now could come under pressure.

“We had wheat below the price of corn. That’s highly unusual,” said Dale Durchholz, senior market analyst with AgriVisor. “It reinforces the idea that wheat is more attractive as a feed ingredient for livestock.”

Wheat contains a higher protein content than corn, according to Durchholz.

And there’s plenty of it.

Carryover vs. usage for wheat currently is at 34 percent compared to just 5 percent for corn and 4 percent for soybeans.

“As a feed, wheat is worth about 12 percent more than corn,” Durchholz said. “So (livestock producers) can pay a little more for wheat than corn and get the

same nutritional value.”

Durchholz estimated there are about 100 million bushels of soft red wheat currently available and another 50 Dale Durchholz million bushels that could enter the feed market at harvest.

“150 million bushels of soft red wheat would go a long way toward easing the tight supply of corn,” he said. “Wheat could be a drag that keeps corn prices from

going up.”

Authors of the CME Group Daily Livestock Report last week estimated that at prices of $7.55 per bushel for corn and $342 per ton for soy meal, soft red wheat can be used economically as a feed substitute up to a price of $8.27 per bushel.

However, wheat has a high starch content, which can cause digestive problems in cattle. It is recommended that wheat make up only 30 to 50 percent of a total livestock diet, according to the Daily Livestock Report.

Overall, Darin Newsom,

Telvent DTN senior analyst, also sees some bearish signs in the commodity markets.

He noted some commodities in March traded above the February high and below the February low before closing lower for the month, a situation he referred to as a key bearish reversal.

“There are some cracks showing up in the commodity markets,” Newsom said last week during a DTN webinar.

Newsom and Durchholz reported a large amount of investment money exited commodities in recent weeks.

“It created a drag on just

about every commodity market,” said Durchholz, who noted crude oil prices slipped about $7 per barrel from recent highs.

On the flipside, demand for farm products remains high while the U.S. dollar has been incredibly weak over time with no signs of strength.

A weak dollar “should continue to support commodity markets as a whole,” Newsom said.

Durchholz added, “there is potential for higher (commodity) prices. But playing a speculative game, you have to consider the risk, and the risk is huge.”

Majority of wheat crop in good, excellent condition Wheat streak mosaic virus confirmed in Southern Illinois Wheat streak mosaic virus recently was confirmed in Southern Illinois, although it appears the outbreak is not widespread.

Symptoms of wheat streak mosaic appear on the leaves as mottling or yellow streaks that run parallel with the veins, the University of Illinois reported. General yellowing and stunting may occur in plants affected by the virus.

Carl Bradley, U of I Extension plant pathologist, said he recently received several reports of similar symptoms in wheat fields across the state.

But at this point, he said, the outbreak does not appear to be a major problem.

The virus is transmitted by the wheat curl mite and infection typically occurs in the fall.

However, a sizable por-

tion of the wheat crop in the state was slow to emerge last fall due to dry soil conditions, particularly in Southern Illinois.

“A lot of wheat in my area was not up last fall to the extent where there’s a problem,” said John Brink, a wheat grower from Washington County and past president of the Illinois Wheat Association.

In fact, the majority of the wheat crop in the state (60 percent) last week was rated in good to excellent condition. Thirty percent of the crop was rated fair while 10 percent was rated poor or very poor.

“The wheat crop, for the start it had last fall and some extreme cold conditions it endured this winter, for the most part looks pretty good,” Brink said.

“I don’t think we’ll set any (yield) records,” he continued. “But it appears we could have an average to slightly above average crop as long as we don’t have

intense disease pressure this spring.”

Brink last week predicted the majority of the 740,000 wheat acres planted last fall in Illinois will be left intact and harvested this year.

As for the wheat streak mosaic virus, Bradley reminded producers it can be properly diagnosed only via lab testing. Bradley’s lab currently is conducting a wheat virus survey in the state.

Growers are encouraged to send symptomatic leaf samples (about 30 leaves) for the survey. Samples should be sealed in a plastic bag; the county, date of collection, and submitter’s contact information must be included; and the samples must be sent overnight, immediately after collection, to Bradley’s lab.

Samples should be sent to Dr. Carl Bradley, Department of Crop Sciences, University of Illinois, 1102 S. Goodwin Ave., Urbana, IL 61801. — Daniel Grant

Fertilizer industry unveils nutrient stewardship website A new online resource is designed to help farmers boost yields, manage input costs, and use nutrients wisely.

The website, {www.nutrientstewardship.com}, is a collaborative effort of the fertilizer industry to raise awareness of “4R” nutrient stewardship, a site-specific, scientific framework that focuses on use of the right fertilizer source at the right rate, the right time, and the right place.

“Nutrient stewardship is a top priority for the entire fertilizer industry,” said Ford West, president of The Fertilizer Institute (TFI).

The 4R nutrient stewardship concept and website are a cooperative effort of TFI, the International Plant Nutrition Institute, the Canadian Fertilizer Institute, and the International Fertilizer Industry Association.

The new site is designed to serve as an online clearinghouse for information on 4R-related tools and resources.

The website offers information on a wide range of agronomic topics related to nutrient management and provides a how-to guide for implementing the 4Rs on the farm.

Page 7 Monday, April 18, 2011 FarmWeek

FERTILIZER

Manure gains value as fertilizer, diesel prices rise

BY DANIEL GRANT FarmWeek

Livestock manure often is referred to as a waste product, but many farmers these days are trying to save and use every drop.

That’s because nutrients in locally produced manure have become an “exceptional value” compared to the price of commercial fertilizer, according to Nic Anderson, business developer for the Illinois Livestock Development Group.

Average fertilizer prices in the state as of March 31 ranged from $770 to $840 per ton for anhydrous ammonia (up $2.12 from the previous two weeks) and from $650 to $710 per ton for diammonium phosphate (up $2.12), the Illinois Department of Agriculture reported.

Meanwhile, the national price for diesel fuel a week ago averaged $4.08 per gallon, up $1.01 from a year ago, according to the Energy Information Administration.

“We’re seeing a lot of investment in infrastruc-

‘It (manure) is wor th, on average, at least $100 per acre, right now.’

— Nic Anderson Illinois Livestock Development Group business developer

ture (in the beef industry) such as hoops structures and rigid frame structures,” Anderson said.

“A lot of folks are addressing EPA (Environmental Protection Agency) compliance issues and are updating open lots or barnyards,” he continued. “Also, the value of manure is exceptional right now.”

The more a production system is able to capture manure in its raw form — before nutrients are lost — the more value it offers, Anderson said. Farmers who improve the manure handling capabilities on their farm can add anywhere from 60 to 90 percent to the value of the manure.

“It (manure) is worth, on average, at least $100 per

IALF golf tournament, reunion slated June 27 The annual Illinois Agricultural Leadership Foundation (IALF) golf tournament and reunion will be held June 27 at the Pontiac Elks Country Club in Pontiac. The event will feature an 18-hole scramble golf tournament, sponsored by Country Financial, and a tour of the Kilgus Dairy Farm and Route 66 Museum in Livingston County for non-golfers. The events are open to everyone.

A reception follows both activities at 3 p.m. with a dinner at 4:30 p.m. Silent and live auctions also will be held just prior to the dinner.

Members of the IALF class of 2012 will raffle a Gator CX utility vehicle donated by John Deere.

The hole-in-one contest will feature a Case IH Farmall compact tractor donated by Case IH. There also are skill prizes for longest drive, longest putt, and other activities.

The tour of the Kilgus Dairy Farm features the only family farm in the state that bottles its own milk and makes its own ice cream.

Tour participants also will go to the famous Route 66

Museum and Murals in Pontiac before returning to the golf course for dinner.

Registration information can be downloaded from the website {http://agleadership.org/?p age_id=441}, or registration can be made and paid for directly on the site.

Registration is required before June 3. Proceeds from the golf outing and tour support the foundation and its educational program.

For more information about the golf tournament and tour, contact the IALF at 309- 837-7711.

acre,” right now, said Anderson, who noted manure to some farmers currently is worth as much as $150 per acre.

Anderson noted there

also has been a great deal of re-investment statewide in dairy and hog facilities.

Six Illinois dairy farms in the past year each increased herd numbers from roughly 400-500 to 600-700 cows.

“In a lot of instances, the next generation is starting to participate in the dairy operations,” he said.

“That’s a great sign.”

Some older farmers continue to exit the industry, though, as high feed and energy prices have

squeezed margins.

Looking ahead, the key for Illinois livestock farmers is their access to grain and co-products, such as distillers dried grain.

“They (Illinois livestock producers) can still make margins work (due to access to high-quality feed),” Anderson added.

“Other states don’t have that advantage. With $4 diesel, transportation costs really affect the bottom line.”

Commodity board petitions can now be circulated Farmers who this year would like to run for three-year terms on the Illinois Corn Marketing Board, Illinois Soybean Program Operating Board, or Illinois Sheep and Wool Marketing Board may now start circulating nominating petitions.

Petitions are available at county Extension offices and the Illinois Department of Agriculture (IDOA). The deadline to complete and return the forms is May 15 for corn and soybean board candidates and May 31 for sheep and wool board candidates.

Producers must be at least 18 years old, have produced and marketed the pertinent commodi-

ty during the 2011 commodity year, reside in the district to be represented, and have submitted a valid petition by the filing deadline to be eligible for election.

Openings exist in districts 1, 4, 7, 10, and 13 of the corn board, districts 1, 5, 7, 9, 12, and 13 of the soybean board, and districts 1, 4, and 7 of the sheep and wool board.

Elections for all three boards will be held July 6. For more information, call IDOA at 217782-6675 or write to: Illinois Department of Agriculture, Bureau of Marketing and Promotion, P.O. Box 19281, State Fairgrounds, Springfield, Ill., 62794-9281.

FarmWeek Page 8 Monday, April 18, 2011

FFA At youth conference

FFA members double Harvest for All donations

About 425 FFA members participated in the recent Illinois Farm Bureau and Affiliates Youth Conference at the Crowne Plaza, Springfield.

A career fair offered participants resources to help them prepare for careers in a variety of agricultural fields.

FFA members also brought non-perishable food items to the conference for the statewide Harvest for All food drive.

“This year the students

FarmWeekNow.com You can view video from the IFB and Affiliates Youth Conference by going to FarmWeekNow.com.

more than doubled the Harvest for All collection at the conference, bringing in more than 3,779 pounds of canned goods for the Central Illinois Foodbank,” said Mariah DaleAnderson, IFB youth activities manager.

Workshop sessions provided information about tools to

promote agriculture, strategies to enhance leadership abilities, skills needed to be an entrepreneur, and opportunities in ag organizations after high school graduation.

New this year, conference participants made their own videos on promoting agricultural-related careers and the agriculture industry to the public.

“With today’s technology and the way today’s young people communicate, the video competition was a great way for FFA members to learn about how they can engage in promoting agriculture through digital media,” said DaleAnderson.

She added each student team created a two-minute video and all 23 videos will be posted on the Youth Education Facebook page at {www.facebook.com/ilfbyea}.

Before attending the Youth Conference, FFA members were required to attend a local county Farm Bureau acquaintance day pro-

Darrin Storm, left, Illinois Farm Bureau Young Leader Committee member from Strasburg, discusses the Young Leader program with an FFA member during the recent IFB and Affiliates Youth Conference. FFA members across Illinois attended a career fair and learned about opportunities during the two-day conference. (Photo

by Mariah Dale-Anderson, IFB youth activities manager)

gram, which introduced IFB and its family of companies

to FFA members.

These programs are conducted by county Farm Bureaus throughout the state from September through February. The programs’ content ranges from activities conducted by county Young Leader programs and agriculture-related tours to careers and personal devel-

opment workshops.

The annual two-day conference is sponsored by IFB and its affiliated companies, which include GROWMARK Inc., Country Financial, Prairie Farms, and the IAA Credit Union.

For more information, go online to {www.youthed.org} or {www.facebook.com/ilfbyea}.

May 20 deadline

NRCS organic funding still available in Illinois

Certified organic farmers and those transitioning to organic production may apply for funding through the USDA Natural Resources Conservation Service (NRCS).

May 20 is the cutoff date for the current application period, according to Illinois State Conservationist Bill Gradle.

However, applications are being accepted on a continuous basis.

Nearly $1 million is avail-

able to help farmers plan and install conservation practices that address natural resource concerns and are consistent with organic production.

Conservation practices may include planting cover crops, establishing integrated pest management plans, constructing seasonal high tunnels, or implementing nutrient management systems that meet organic certification standards.

Eligible farmers include those certified through USDA’s National Organic Program, those transitioning to certified organic production, and those who meet organic standards but are exempt from certification because their gross annual organic sales are less than $5,000.

The organic funding is provided through NRCS’ Environmental Quality Incentives Program (EQIP).

Farmers interested in applying for EQIP organic funding must submit applications through their local NRCS Service Center.

Page 9 Monday, April 18, 2011 FarmWeek

FROM THE COUNTIES

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A S A L L E — Slowmoving-vehicle decals are available for $2 at the Farm Bureau office.

ERMILION — Farm Bureau will sponsor a Summer Ag Institute teacher training workshop July 11-15. Presentations on classroom activities, visits with farmers to learn about today’s agriculture, and tours to various farms and agribusinesses will be held.

Cost is $150. Teachers will receive up to 40 continuing professional development units. Reservations are due

by May 1. More information is available on the website {www.vcfb.info}.

I L L — Farm Bureau will sponsors its annual Senior Fair from 9 a.m. to noon Thursday, May 19, at the Farm Bureau office. Free health screenings will be given by Beltone Hearing Aids and Silver Cross Hospital. Personnel from the Will County tax assessor’s office will

V

W

provide information on the senior freeze tax program.

Other participants include the Will County Sheriff ’s Triad, Will County Health Department, Sunny Hill Nursing Home, and Tim Hartnell from Country Financial. Call Terri at the Farm Bureau office at 815727-4811 for more information.

INNEBAGO — Farm Bureau will sponsor a bus trip Tuesday, May 10, to see the Patty Waszak show at the White Fence Farm, Lemont. The bus will leave the Farm Bureau office at 9:15 a.m.

Cost is $52, which includes bus, chicken lunch, and show. Call the Farm Bureau office for reservations or more information.

W

“From the counties” items are submitted by county Farm Bureau managers. If you have an event or activity open to all members, contact your county manager.

Illinois State Fair premium books online Premium books for the 2011 Illinois State Fair, Aug. 12-21, are now available online.

The information covers rules, entry forms, and prizes for more than 8,700 competitive events, including livestock and horse shows.

A total of five premium books, one each for the Livestock and Junior Livestock contests, the Western Horse Show, the Society Horse Show, and general fair entries, is online at {www.illinoisstatefair.info}. Click on the “Competitions” tab.

Livestock, Junior Livestock, Western Horse Show, and Society Horse Show entries should be sent to the Illinois State Fair no later than July 1. For most other fair contests, including the culinary, floriculture, and textile contests, the entry deadline is July 15.

Printed copies of the premium books are available upon request by calling Durinda Kirby at 217-782-0786.

Auction Calendar Thurs., Apr. 21. 10 a.m. Farmland LaSalle Co. Randy Graham Estate and James R. Graham, KERNAN, IL. Bradleys’ and Immke Auction Service. www.bradleyauctionsinc.com Thurs., Apr. 21. 7 p.m. 60 Ac. Land Auction Jasper Co. Don and Gloria E Meyer, DIETERICH, IL. Auctions/Realty By Schackmann Inc. www.schackmann.com Sat., Apr. 23. 10 a.m. Land Auction Pulaski Co. Buy a Farm Land and Auction Co. buyafarm.com Sat., Apr. 23. Consignment Auction. Black Hawk FFA Alumni, SOUTH WAYNE, WI. Powers Auction Service. www.powersauctions.com Tues., Apr. 26. 10 a.m. 85 Ac. Farmland Auction. Lorene Gerdes Estate, CISSNA PARK, IL. Bill Kruse, Auctioneer.

Wed, Apr. 27. 10 a.m. 234.04 Ac. Ford Co. Gibson Hospital Foundation, GIBSON CITY, IL. Bill Kruse, Auctioneer.

Sun., May 1. Consignment Auction.

Orangeville Fireman’s, ORANGEVILLE, IL. Powers Auction Service. www.powersauctions.com Thurs., May 5. 7 p.m. Morgan Co.

TOUCH-A-TRACTOR PARTICIPANT

Land Auction. Heirs of Sebastian B. Kumle, Sr. Trust, ALEXANDER, IL. Middendorf Bros. www.middendorfs.com Sat., May 7th at 10 a.m.

Construction Eq., Trucks and Trailers and Misc. Hunters Ridge Development Auction, FREEPORT, IL. Powers Auction Service. www.powersauction.com Sat., May 7 . 9 a.m. Congerville Lawn and Garden, Farm and Construction Consignment Auction.

CONGERVILLE, IL. Kaufman Auction Service. www.calkaufmanauction.com Sat., May 14. Lawn and Garden Consignment Auction. Riesterer and Schnell, HORTONVILLE, WI. Powers Auction Service. www.powestauctions.com Thurs., May 26. 10 a.m.

Champaign and Piatt Counties Land Auction. MONTICELLO, IL. Hertz Farm Mgmt., Inc. www.hfmgt.com Tues., May 31. 6:30 p.m. McLean Co. Land Auction. Soy Capital Ag Services. www.soycapitalag.com Sat., June 11. 10 a.m. LaSalle Co. Land Auction. NEWARK, IL. Richard A. Olson, Auctioneer. richardaolson.com

Warm April weather helped draw a large crowd to the Kane County Farm Bureau (KCFB) in St. Charles for its sixth annual Touch-a-Tractor event recently. The event gave the public a chance to see modern farm equipment, antique tractors, and farm animals, and learn about agriculture through hands-on activities and demonstrations. Five-year-old Victoria Parker, shown here, tried out this 1927 McCormick-Deering 1020 belonging to Dale Pierson of Kaneville.

Touch-a-Tractor raises funds for the KCFB Foundation, which used the event to announce the 20 scholarship recipients for the 2011-12 school year. (Photo courtesy Kane County Farm Bureau)

FarmWeek Page 10 Monday, April 18, 2011

PROFITABILITY

Laying a foundation of good records essential

BY SID PARKS

Isn’t this a great time of year? Those of us who share a passion for growing things also share a natural optimism of the coming growing season that spring brings. I am ready, are you?

Sid Parks I recently learned the results of a poll that asked an agricultural publication’s readership the No. 1 goal they had for this year.

Responses were almost evenly split between cutting costs and boosting yields, with improving marketing decisions a relatively close but distinct third.

As I read, I wondered how respondents thought they would arrive at these goals.

Cutting costs sounds good, but at what price? Boosting yields has been a desire of man since he first started cultivating crops. But how does one do it?

Choosing cheap inputs often means older genetics, antiquated technology, or lesseffective performance levels.

If you are prepared to deal with the consequences, cheaper inputs are fine.

Reducing or eliminating unnecessary activities can lower production costs, but without knowing what is or isn’t

necessary, one can cause more damage than good.

The first step I’d suggest for anyone trying to improve is having a foundation of good records that depicts where you are today, just as any new building needs to be based on a good foundation and footings deep in the soil.

Today’s equipment controllers/computers provide users the ability to record asapplied information when

There appears to be no relief in sight at the fuel pump for price-sensitive consumers.

The Energy Information Administration (EIA) this month raised its projection for average crude oil prices by $5 per barrel for west Texas intermediate crude. The oil price this year currently is projected to average $106 per barrel.

The price adjustment follows a major run-up in crude oil prices, which averaged $89 per barrel in February, $106 per barrel in March, and peaked at $112 per barrel this month before a slight retracement last week.

“We have a seasonal build of domestic stocks (well above average), so there’s no fundamental reason crude, domestically, should be trading at $110

Feeder pig prices reported to USDA* Range Per Head Weighted Ave. Price $33.60-46.00 $38.78 $65.00-77.87 $70.91 n/a n/a This Week Last Week 30,969 29,040 *Eastern Corn Belt prices picked up at seller’s farm

Eastern Corn Belt direct hogs (plant delivered) (Prices $ per hundredweight) This week Prev. week $91.32 $92.70 $67.58 $68.60

Change -1.38 -1.02

USDA five-state area slaughter cattle price Steers Heifers

ly already recognize the value of good records.

If not, your FS crop specialist has access to tools and services to help with information management, empowering you to be able to use this information for future managerial decisions.

Sid Parks is GROWMARK’s manager of precision farming. His e-mail address is sparks@growmark.com.

BY DANIEL GRANT FarmWeek

Weight 10 lbs.

40 lbs.

50 lbs.

Receipts

This week 119.04 118.71

areas become management zones that can be used for advanced analysis, demonstrating the value of the treatment. In our system, we call this FS GREEN PLAN Solutions®, On-Farm Discovery.

Before any decisions are made, I would encourage you to document what, when, and where as it relates to growing your 2011 crop. If you have a good system in place, you like-

Crude oil, fuel prices projected to remain high

M A R K E T FA C T S

Carcass Live

planting or applying crop protection products or fertilizers.

This information will be crucial at harvest for those with the ability to turn on and off planter or sprayers automatically or vary the intended populations “on the fly.”

Recording accurate company, hybrid, or variety information, as well as planting population or rates of crop protection products is desirable.

Treated and non-treated

(Thursday’s price) Prv. week Change 122.68 -3.64 121.00 -2.29

CME feeder cattle index — 600-800 Lbs. This is a composite price of feeder cattle transactions in 27 states.

(Prices $ per hundredweight) Prev. week Change 136.07 -1.70

This week 134.37

Lamb prices Slaughter Prices - Negotiated, Live, wooled and shorn 100-180 lbs. for 170200.98 $/cwt.(wtd. ave. 192.33); dressed, no sales reported.

Export inspections (Million bushels)

Week ending Soybeans Wheat Corn 4-07-11 20.8 28.3 38.8 3-31-11 23.1 29.5 39.1 Last year 15.2 18.4 38.1 Season total 1318.6 1025.6 1041.4 Previous season total 1276.8 731.5 1060.2 USDA projected total 1580 1275 1950 Crop marketing year began June 1 for wheat and Sept. 1 for corn and soybeans.

‘ Long-term , there still is plenty of concern about (global) supply and demand.’

— Darin Newsom Telvent DTN senior analyst

to $112 per barrel,” said Darin Newsom, Telvent DTN senior analyst.

“But, long-term, there still is plenty of concern about (global) supply and demand,” he continued. “That could continue to provide price support.”

High oil prices are a key component of high fuel prices, which last week averaged $4.08 per gallon for diesel nationwide, up $1.01 from last year, and $3.79 per gallon for regular unleaded gasoline, up 93 cents.

“We’ve heard of (gasoline) demand slowing down (due to high prices), but I think it will pick up again as we get into the driving season,” the analyst said. “Gasoline tends to rally through the second quarter to a mid-summer high before it starts trending lower.”

That could be the case this year.

EIA this month projected gasoline prices from April 1 to Sept. 30 will average $3.86 per gallon nationwide compared

to $2.76 per gallon during the same period last year. Gas prices are projected to average $3.70 per gallon for the whole of 2011.

The run-up in oil and fuel prices prompted the Global Renewable Fuels Alliance (GRFA) last week to caution consumers about a corresponding jump in world food prices.

Farmers receive about 12 cents of every food dollar

with the rest going toward costs such as processing, packaging, and transportation, according to USDA. “There is very clear evidence that oil prices are continuing to have a disproportionate effect on the price of our food,” said Bliss Baker, GRFA spokesperson.

In January, the United Nation’s Food and Ag Organization’s food price index hit an all-time high.

Retail price for diesel fuel outpaces gasoline Farmers, truckers, and other users of diesel fuel in the past got used to spending less for a gallon of diesel compared to a gallon of unleaded regular gasoline.

But the trend has been reversed, and diesel fuel has been priced at a premium to gasoline for the last year and a half. The last time regular grade gasoline sold for more than diesel was Aug. 10, 2009, according to the Energy Information Administration (EIA).

“Since mid-2009 the price of diesel has been consistently higher than the price of retail regular grade gasoline,” EIA noted in a special report. “Strong diesel demand in emerging economies (such as China) and the U.S. economic recovery supported this trend.”

Prior to 2005, gasoline prices typically were higher than diesel fuel during the peak summer driving season, then diesel prices typically

moved higher than gasoline during the winter months when driving declined and the price of heating oil (a fuel similar to diesel) increased.

But the relationship changed in 2005 and for the first time diesel prices remained higher than gasoline for most of that summer. The diesel premium peaked in 2008, but then fell sharply during the recession.

The off-balance relationship between diesel and gasoline prices returned in 2009 and has been in place ever since. Strong global demand for diesel fuel has been a major driver of relatively high domestic diesel prices, according to EIA. The International Energy Agency estimated that in China last year demand for diesel fuel increased 12 percent while gasoline demand grew by 4.4 percent.

FarmWeek Page 11 Monday, April 18, 2011

PROFITABILITY Corn Strategy

C A S H S T R AT E G I S T

Investment interest changing Goldman Sachs client recommendations served as bookend events for the commodity markets last week. On April 11, the world’s largest commodities trader told clients to liquidate a basket of commodities acquired in December. On Thursday night, clients were told to shift the commodity allocation in their portfolios to “underweight” for the next three to six months.

On the initial recommendation, Goldman’s analysts thought the risk/reward for commodities in the CCCP basket which contains copper, cotton, crude oil, platinum, and soybeans, they recommended in December 2010 had gotten too high. The basket was heavily weighted toward energy and metals, with the only agricultural commodities — cotton and soybeans — making up but 10 percent each of the total portfolio.

When the trades were put on, Goldman Sachs had an objective of reaching a 28 percent return. With the returns reaching 25 percent, and potential for a changing political environment in Libya and Nigeria, the risk was thought to have gotten too high.

Ongoing problems in Japan were a part of the mix in the recommendation.

In the research paper released at the end of the week, analysts felt commodity prices had gotten too high relative to other asset classes.

And even though they see larger downside risk for the next three to six months, they still felt there was further upside potential over the 12month horizon.

Because Goldman Sachs is such a large, influential player in the commodity investment arena, its shift in attitude could be enough to drag commodity prices down into the stops under the market held by the big trading funds, the speculative money shown on the chart.

Check the “Closer Look” page in the E-Visor segment on the AgriVisor website later this week for a more detailed look at these features.

Events in Libya, and other Middle Eastern countries, are pretty fluid with a chance for change on any given day. But the ongoing problems in Japan may be a drag on their economy and others further into 2011. That adds to risk with commodity prices generally at “lofty levels.”

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Cents per bu.

2010 crop: Recent market action suggests a short-term top is in place, positioning prices to drift sideways to lower into a short-term cycle low due May 1. If July futures drop below $7.50, they could drop to $7.13-$7.22. Use rallies to wrap up sales, other than “gambling” bushels. Hedge-to-arrive (HTA) contracts for summer delivery are the best strategy.

2011 crop: December futures are holding firm, partly on spread unwinding with oldcrop futures. Use strength for catch-up sales, especially with prices close to the contract high.

We could add to sales any time.

Check the Hotline frequently.

Fundamentals: Part of the weakness over the last week could be linked to Goldman Sachs recommending clients to take profits on commodity investments. At the same time, old-crop prices are being pulled lower by the competition with wheat in the feed bunk both here and elsewhere in the world. Weather and the slow start to planting are supportive to new-crop prices in particular.

Soybean Strategy 2010 crop: Eroding export potential and talk of deteriorating conditions for Chinese imports have made the soybean market more defensive. Even though prices haven’t collapsed, the odds for new highs have diminished severely. If you still have inventories, use rallies to $13.70 on July to wrap them up.

2011 crop: Uncertain new-crop fundamentals are somewhat supportive, but planting delays could shift acreage to soybeans. And the Chinese cancellations add some uncertainty to long-term demand. Use rallies above $13.50 on November futures to make catch-up sales, preferably with a HTA contract. We may add another sale at any time, so check the Hotline frequently.

Fundamentals: Talk about Chinese cancellations continues to haunt the market.

Buyers are said to have canceled 8-10 cargoes, with another 15-20 possible. South American crop estimates con-

tinue to edge higher, indicating world supplies will be relatively abundant through summer.

Wheat Strategy 2011 crop: The early April high is looking more like a significant short-term high, especially with the ease of the slide in prices after it. Prices on Chicago July futures are trading below the 20-, 50-, and 100-day moving average. If support at the 200day moving average, $7.68, is penetrated, July could test the last interim low at $7.40. Use rallies above $8 on Chicago July for catch-up sales. Check the Hotline frequently because we

could recommend additional new-crop sales at any time. We still prefer HTA contracts, especially for winter delivery if you have the capability to store wheat.

Fundamentals: The wheat market hasn’t been able to gain any traction even with the extremely dry conditions in the Southern Plains. There was some light rain in that area at week’s end, and there is a chance for more this week. However, those same weather systems will keep the Northern Plains cool and damp, slowing planting of that crop this spring. Elsewhere in the world, there are only scattered problems so far.

FarmWeek Page 12 Monday, April 18, 2011

PERSPECTIVES

SEEDS OF OPPORTUNITY U of I students gain unique experiences through Monsanto Summer internships provide students an opportunity to gain work experience in their fields of interest while networking with professionals.

Brad Pilcher, an agricultural and consumer economics student from the University of Illinois, spent a summer working for Monsanto.

Megan Ott, a senior in agriASHLEY LAVELA cultural communications at the U of I, interned with the comguest columnist pany for two summers.

Agriculture runs in Pilcher’s blood. Growing up on a Central Illinois farm, he has shown pigs with his family for as long as he can remember. He also served as the Illinois state FFA president and saw a variety of opportunities in the agriculture industry.

Pilcher worked on the U.S. Channel Marketing Team Bio Future Access Tour. During his threemonth internship, he served on Monsanto’s marketing team and traveled across the country, delivering presentations in such states as Texas, Oklahoma, Kansas, and Iowa.

Working on the tour allowed Pilcher to practice his communications skills and created networking opportunities. His main tasks included promoting Channel, sharing Monsanto’s vision, and building relationships with customers.

Before his internship, Pilcher had considered a career in production agriculture; however, he wanted to gain experience working for a larger company because of the opportunities, he said. “This ‘opportunity’ opened my eyes to working in an industry position,” Pilcher said.

As an intern, Pilcher worked with multiple sales teams, which he felt was beneficial because it allowed him a greater opportunity to address problems.

He also spoke with area business managers, cus-

University of Illinois student and Monsanto intern Brad Pilcher, standing, gives a presentation as part of his internship duties. (Photo courtesy Brad Pilcher)

tomers, and dealers during his internship. Working with different audiences stressed the importance of good salesmanship and creating relationships.

“It’s really about being a good salesman and trying to gain a good reputation,” Pilcher said.

After completing his internship, Pilcher took a sales job with Monsanto in Decatur. Internship experience with the company gave him more insight about its operations.

“Learning about their exciting product pipeline and meeting industry leaders within the organization helped me gain a greater understanding of their company,” he said.

Pilcher remains active in agriculture. Recently, he was in Oklahoma selling pigs at the “world series of hog shows.” Before that, he traveled to Louisville, Ky., to judge livestock at the North American International Livestock Exposition judging contest.

“I grew up in agriculture, and that’s where I’ll make my home,” Pilcher said.

Ott interned with Monsanto for two summers in different positions. The first summer she worked as a field sales intern in Iowa.

“My responsibilities included building relationships among the producers and sales representatives, and receiving testimonials on their newest variety, Genuity RoundUp Ready Soybeans,” Ott said.

This past summer, Ott interned in St. Louis as part of

the corporate marketing and communications team.

She worked on a variety of projects ranging from web design and research to broadcasting.

These experiences taught her the importance of networking and remaining current about the agriculture industry, she said.

“Networking itself has become a valuable asset I still carry with me in my college career and outside of school,” Ott said.

Like Pilcher, Ott grew up on a farm and plans to pursue a career in the agriculture industry. While marketing and communications interest her, she also is considering working directly with farmers who share her passion for agriculture.

Because the agricultural field is so vast, internships allow students to gain valuable experience throughout the industry.

“Internships are a valuable asset to a student’s career.

Whether you learn new skills outside the classroom or apply what you have learned in the classroom to real-life situations, the opportunities are endless,” Ott said.

Ashley LaVela, a junior from Oak Lawn, is majoring in agricultural communications in the University of Illinois College of Agricultural, Consumer, and Environmental Sciences.

She always has had an interest in the environment, which she’s learned goes hand in hand with agriculture.

LETTERS TO THE EDITOR Organic farming works with nature Editor: In the March 7 FarmWeek, you published a letter from Don Ellingson in which he expressed concerns that organic farming was going backward to the 1930s. Those comments point to a sad lack of knowledge on the part of way too many people in conventional agriculture about what actually is involved in organic farming.

Organic farming is about working with nature, not against it.

Here in the 21st century there is a lot more knowledge of soil chemistry, soil biology, plant and animal health than when I went to ag college back in the mid-1970s.

With fertilizer, for example, the chemical fertilizers used in conventional farming contain N, P, and K and usually little else.

Fertilizers used in organic farming such as compost, green manure/cover crops, fish emulsion, sea minerals, etc. not only contain N, P, and K but also a wide assortment of other minerals such

as sulphur, copper, magnesium, boron, manganese, and carbon.

Carbon feeds the soil microbes instead of the microbes depleting the soil’s organic matter for their food supply. Carbon also gets sequestered in the soil rather than escaping into the atmosphere.

Organic grain crop yields aren’t significantly different than conventional grain crop yields.

Rotational/management intensive grazing is another very good way organic farmers build fertility by grazing a large number of animal units in a small area for a short time then moving them to the next area of mixed grasses and legumes, usually in 12 to 72 hours.

Three to five years of pasture followed by two to three years of row and small grain crops is an excellent way to break up pest life cycles, diversify income sources, and control erosion.

According to the MOSES organic fact sheet “What Is Organic Agriculture?” “Using tools that mimic nature, organic farmers enhance the health of their farms. Organic production systems

emphasize proactive, knowledge-based management, on-farm resources, and recognition of our interdependency with Nature.”

ROBERT SAYRE, Dundas

Says research supports the uses of herbicide Editor: Herman Brockman took exception to points I made at the recent Illinois Fertilizer and Chemical Association meeting.

I documented the important role that herbicides have in sustaining high-yield sustainable agriculture. He suggests that organic farming without the use of herbicides can deliver high

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yields with less fuel use and erosion.

The latest university and USDA research shows that this is not the case. The research shows that without herbicides, organic systems have more weed problems and lower yields and with more tillage, fuel use, and erosion.

I will be presenting information on the importance of herbicides in a global context tonight (April 18) in a universitywide lecture in the Bone Student Center at Illinois State University.

I look forward to the discussion.

LEONARD GIANESSI, Director of Crop Protection Research Institute CropLife Foundation, Washington, D.C. A daytime telephone number is required for verification, but will not be published.

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