State6 24 2015 by Iowa Farm Bureau

P E R I O D I C A L S : T I M E VA L U E D

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Trade bill appears back on track with House approval Senate expected to consider the bill, seen as essential to a Pacific trade deal, as early as this week. BY DIRCK STEIMEL Agriculture groups cheered last week as the effort to pass Trade Promotion Authority (TPA) leapt back to life in Congress. The U.S. House approved a bill authorizing TPA in a 218-210 vote. The measure will now go to

the Senate, which could pass it and send it quickly to President Barack Obama, who has made TPA a priority. Under TPA, Congress agrees to consider a trade deal as negotiated with an up or down vote, but cannot amend it. The authority is considered an essential tool for passage of large trade deals, including the Trans-Pacific Partnership (TPP) that would link the United States with 11 other nations spanning the Pacific. Earlier, the House passed a broader TPA measure that already

had been passed by the Senate. But the House failed to pass an accompanying bill, called Trade Adjustment Assistance (TAA), which the Senate has also passed. Iowa Reps. Steve King, Rod Blum and David Young voted last week to pass the TPA measure, while Rep. Dave Loebsack voted against it.

Farm Bureau support Farm Bureau is a strong backer of TPA as an essential tool for trade agreements that reduce tariffs and build export markets,

according to Craig Hill, president of the Iowa Farm Bureau Federation. He noted that one in every three acres of farmland is planted for the export market. In addition, pork and beef exports have become an essential part of the livestock farmers’ income and of Iowa’s economy. “We support continued bipartisan efforts to find common ground to finalize TPA,” Hill added. Bob Stallman, president of the American Farm Bureau Federation, also applauded the House action on TPA. “American

Dean Kleckner, Iowan who led national Farm Bureau, dies

Leader in trade Kleckner was the only farmer on the U.S. advisory team to the GATT (General Agreement of Trade and Tariffs) negotiations when they were launched in Uruguay in 1986. He served on the KLECKNER PAGE 2

TPA PAGE 2

Insect issues emerging in Iowa cornfields Rootworms and armyworm populations are rising and could impact yields. STORY ON PAGE 4

Branstad seeks federal aid for avian flu effects

BY DIRCK STEIMEL Dean Kleckner, who served a decade as Iowa Farm Bureau Federation (IFBF) president and 14 years as president of the American Farm Bureau Federation (AFBF), passed away last week in Minnesota. He was 82. In nearly 60 years of service to U.S. agriculture, Kleckner worked tirelessly to increase farm income and was a champion of breaking down barriers and opening foreign markets for American farmers. He also worked to support the adoption and acceptance of agricultural technology in the United States and around the globe to help feed the world and protect the environment. A Floyd County corn, soybean and hog farmer, Kleckner rose quickly into leadership positions in county, state and national Farm Bureau organizations. Kleckner’s tenacious memory, passion for agricultural policy and leadership skills made him a strong and effective advocate for farmers who was recognized around the globe, said Craig Hill, IFBF president. “Few people could endure the schedule and sacrifice he made to advance the interests of American agriculture,” Hill said, “His singular efforts to elevate the merits of and status of free and open markets with regard to trade have been matched by few in American history.”

farmers and ranchers lead the world in food production thanks to ceaseless hard work and innovation. Expanding access to international markets continues this story of growth and prosperity,” he said. “The House’s bipartisan passage of trade promotion authority legislation today brings us a step closer to completing ambitious trade negotiations around the world. TPA streamlines negotiations and strengthens our position at the bargaining table.”

Governor wants a presidential disaster declaration for four counties in northwest Iowa. STORY ON PAGE 5

Study shows wind, equipment spreading avian flu virus

Study says wild birds introduced disease, but other factors appear to be spreading it. STORY ON PAGE 5

Ted Novak, left, discussed cattle performance with his son, Ben, right, and hired man Richard DeFauw. Like many other Iowa livestock raisers, the Novaks have seen cattle weight gains and overall performance improve when animals are housed in structures and out of the summer heat. PHOTO/GARY FANDEL

Structures keep cattle cool, performing in summer heat BY BETHANY BARATTA

s temperatures climbed into the mid-80s last week, cattle on Ted and Ben Novak’s farm near Elberon

stayed cool and comfortable. The father-son team made sure of that with a variety of growing systems on their farm in Tama County. Like the Novaks, cattle raisers across Iowa have been adding structures — confinement barns,

gable-roofed structures, hoop barns, monoslopes — as a way to keep their cattle out of the state’s extreme temperatures. “A lot of farmers that we’re CATTLE PAGE 2

Ernst questions EPA’s handling of RFS rules The Iowa senator says the agency appears to be disregarding the law in its proposal to reduce biofuel requirements. STORY ON PAGE 8

IOWA FARM BUREAU EARNS 2015 AFBF NAVIGATOR AWARD RENEW RURAL IOWA SEMINAR JULY 9 The Iowa Farm Bureau Federation (IFBF) has once again been awarded the American Farm Bureau Federation’s (AFBF) prestigious Navigator Award for exceeding membership goal by 1.5 percent. The IFBF has exceeded its 2015 membership goal with 15,037 new members for a total of 159,094. The organization has now reached its membership goal for 14 consecutive years. “Reaching our membership goal for the 14th consecutive year in 2015 and achieving AFBF Navigator status shows that all of the hard work by our Farm Bureau volunteers really pays off,” said Craig Hill, IFBF president. “Building membership really is a grassroots effort. We had some 700 volunteers in our membership drive this year who visited with their neighbors, friends and others to help explain the value of belonging to our great organization.” The ability of IFBF to reach its membership goals year after year is a clear indication that our organization is strong, growing, vibrant and good for Iowa, Hill said.

Renew Rural Iowa will hold a one-day seminar July 9 in Carroll to help rural entrepreneurs in understanding their unique challenges and methods to overcome them. The seminar will be led by Mike Kleis of Renaissance Executive Forums of Iowa and Joel Bennett of Veel Hoeden Consulting. “This hands-on event will provide an opportunity to discuss your challenges with other business owners and utilize the collective power of their experience to help you address these barriers,” said Sandy Ehrig, Iowa Farm Bureau’s economic development administrator. For more information, go to http://www.renewruraliowa.com.

JUNE 24, 2015 IOWA FARM BUREAU SPOKESMAN

CATTLE FROM PAGE 1

working with want to put up a cattle barn to help not only control the environmental aspect of things, but also increase cattle performance, especially in the summer months,” said Brian Waddingham, executive director of the Coalition to Support Iowa’s Farmers. David Rueber, a beef production specialist with Innovative Ag Services, said that the buildings remove a limiting factor in cattle performance. “It provides shade in the summertime to drop that temperature 10, 20 degrees. In the winter, it’s protection from wind and cold, which allows them to have temperature improvements of 10, 20, 30 degrees,” Rueber said. “It moderates those effects and limits them. It doesn’t totally take them out of play, but it takes those extremes out.”

Easy to notice difference

Ben Novak says it’s easy to see difference in temperatures when he’s working with the cattle. “Cleaning out the monoslope on a hot day, it’s a lot cooler inside,” Ben said. “You can only imagine what that’s doing for the cattle.” On the Novak farm last week, cattle living in the slatted facility and the deep-bedded monoslope were 15 degrees cooler than those in the feedlot. “Comfortable cattle are going to eat better and gain better,” said Bill Rubis, president of Iowa Beef Systems, which built the mono-

Cattle stay cool inside a hoop barn on the Novak farm near Elberon. The hoop structure helps reduce the heat and boosts performance in the summer months, the Novaks say. PHOTO/GARY FANDEL

slope barn on the Novak cattle farm in 2014.

Out of snow, rain

Under a roof means cattle also keep from being exposed to direct sunlight or rain, which can mean mud and extra challenges for cattle movement. Cattle spend less energy simply walking to a feed bunk rather than trudging through mud, Rueber said. Thus, he said, feed conversion rates are typically better in a controlled environment like a roofed structure. Rueber said a typical rate might be 7 to 1, or 7 pounds of feed for 1 pound of gain. Inside a structure, it’s pretty common to see a 6.3 to 1 ratio, so less feed is needed to add body weight.

This is important for a farmer, Ted Novak said. “Feed is our number one cost,” he said. “If you can be more efficient, it makes you more competitive.” While it protects animals, it doesn’t mean less work for the farmer, the Novaks said. “It’s not less management. It’s probably a little more,” Ted said.

Controlling manure

One of the Novaks’ facilities has slatted flooring with a pit underneath. The farm’s Holstein cattle walk on three-quarter-inch rubber mats above the slats, which keeps cattle comfortable and helps eliminate stress on the cattle’s feet. The slatted flooring means cattle aren’t resting in a sloppy

Another set of eyes

“It’s always a good idea to get a second set of eyes out to make sure you’re in compliance with all the rules and regulations,” he said. The Novaks say their buildings are making their manure more valuable. And that’s helping them reduce fertilizer costs. “We don’t buy any commercial P (phosphorous) and K (pot as sium) anymore,” Ted said. “Nit rogen is cut in half.”

Kleckners lived in Urbandale.

KLECKNER

A range of awards

FROM PAGE 1

U.S. Trade Advisory Committee, with appointments from three U.S. presidents (Ronald Reagan, George H.W. Bush and Bill Clinton). In that role, he worked to gain access to new markets for American farmers at World Trade Organization meetings in Canada, Singapore, Brussels, Geneva, Cancun and Hong Kong.

Continued work on trade

After serving as AFBF president, Kleckner was the chairman of Truth About Trade & Technology (TATT) from 2000 to 2012. The Iowa-based non-profit group is led by farmers to support free trade and farmers’ freedom to choose the tools, technologies and strategies they need to maximize productivity and profitability in a sustainable manner. “The world remembers Dean as one of the leading voices in American and world agriculture — a title he earned along with the respect and friendship of political, business and farm leaders from around the world,” said Mary Boote, CEO of TATT. “At Truth About Trade & Technology, we remember Dean as a leader and friend who was most interested in local crop reports, the challenges a farmer was facing and talking about how we could work together to fix it. And then doing something about it. If there was an opportunity to work in support of free trade and agriculture, Dean was ready to go — and did.” Boote noted that one of Kleckner’s heroes was Iowaborn Nobel laureate Norman Borlaug. “Over his lifetime, Dean truly exemplified Dr. Borlaug’s

feedlot or trudging through mud to get to feed and water. “It’s amazing how clean they are,” said Ted Novak, a Tama County Farm Bureau member. The pit also adds more value to the manure, which is used as a fertilizer on the family’s crops, and has drastically reduced the potential for manure runoff from the 900-head capacity barn. Another building on the farm is a monoslope, where cattle are bedded on a solid cement floor. Because the building isn’t completely enclosed, the cattle can take advantage of breeze and natural ventilation. Planning is key when considering a new barn for cattle or any species of livestock, Waddingham said. When siting a confinement, whether it’s cattle, hogs, turkeys, dairy or even fish, a farmer needs to consider setback distances from neighbors and public use areas, as well as soil types, specifically alluvial soils and karst soils, Waddingham said. CSIF staff is available to help farmers determine if a barn would be a good fit for the farm, Waddingham said.

Dean Kleckner, right, is acknowledged at an Iowa gathering during a recent American Farm Bureau Federation (AFBF) annual convention, while Iowa Farm Bureau Federation (IFBF) vice president Joe Heinrich looks on. Kleckner, who passed away last week, served a decade as president of IFBF and later led AFBF for 14 years. PHOTO/GARY FANDEL

words — ‘Take it to the farmer.’ Dean did that every day, and we are grateful,” she said. Kleckner also worked to find long-term solutions to the federal budget deficit. In 1988, he was appointed by President George H.W. Bush to serve on a national commission to find budget solutions, along with national business leaders, a U.S. senator, former cabinet secretaries and labor leaders.

Floyd County farmer

Kleckner was born in Riceville and was raised on the family farm near Rudd, northeast of Charles City. He took over the farming operations with his brother, Rex, after the early death of his father,

Ralph. Kleckner and his wife, Natalie, raised five children on the family farm. In 1958, at age 26, Kleckner was elected president of the Floyd County Farm Bureau. He was elected to the IFBF Board of Directors in 1963 and became vice president in 1966. In 1975, he was elected IFBF president until his election to lead the national organization in 1986.

AFBF president

Reelected for six more twoyear terms, Kleckner served 14 years as the president of AFBF, the nation’s top grassroots agricultural organization with affiliates in all 50 states. After returning to Iowa, the

Kleckner is the namesake of TATT’s Kleckner Trade & Technology Advancement Award and Iowa State University’s Dean Kleckner Global Agriculture Graduate Scholarship Award. He was recognized with the AFBF’s Distinguished Service Award, U.S. Meat Export Federation’s Michael J. Mansfield Award, American S o c i e t y o f Fa r m M a n a g e r s and Rural Appraiser’s Carl F. Hertz Distinguished Service in Agriculture and the Centennial Honor Roll by agricultural fraternity Alpha Zeta. He also was the recipient of honorary degrees from Wartburg College and Iowa Wesleyan College. Kleckner is survived by his wife, Natalie, and his five children: the Rev. Mark Kleckner of Bedford, Mass.; Scott Kleckner of Van Meter; Kirk Kleckner of Blaine, Minn.; Rhonda Kleckner Kelloway of Glen Ellyn, Ill.; and Lisa Kleckner Winkey of Long Lake, Minn. A public memorial service for Dean Kleckner will be held at Gloria Dei Lutheran Church, 8301 Aurora Ave., Urbandale, on Aug. 18 at 3 p.m. The public memorial will be immediately followed by a reception and fellowship at the church. The committal, at McLarens Resthaven Chapel in West Des Moines, will be private. The family suggests that in lieu of flowers, memorial donations may be made to the American Farm Bureau Foundation for Agriculture, 600 Maryland Ave. SW, Suite 1000W, Washington, D.C., 20024 or The Alzheimer’s Association, P.O. Box 96011, Washington, D.C., 20090-6011.

IFBF earns top communications awards in AFBF annual contest The Iowa Farm Bureau Federation (IFBF) Marketing and Communications Depart ment received five top awards at the American Farm Bureau Federation’s (AFBF) annual SPARC Conference, held last week in Charlotte, N.C. The Spokesman received two awards, including the award for best newspaper. Additionally, the Spokesman staff was recognized for best news or feature series for the Conservation and Water Quality special supplement that highlighted the progress farmers are making in conservation. IFBF’s Farm Fresh Blog was named the best blog for relating mainstream benefits of Farm Bureau’s state and national policy positions, promoting farmers’ efforts to protect water quality and care for their animals and building bridges with other stakeholders. The best social media campaign was also awarded to IFBF for several successful social media campaigns including Farm Strong, America Needs Farmers (ANF), Farmer Nice, Ditch the Rule and road infrastructure funding campaigns. In addition, the Farmer Nice Internet video was recognized as the best promotional or educational video in the nationwide contest.

TPA FROM PAGE 1

Ron Prestage, National Pork Producers Council president, said passage of TPA will provide U.S. negotiators the leverage they need to close negotiations on the Pacific trade deal. He called the TPP deal the “most significant regional trade agreement ever.” Beef and dairy groups also expressed strong support for final TPA passage. C h i p B ow l i n g , p r e s i d e n t of the National Corn Growers Association, said the United States is now one step closer to breaking down trade barriers and providing America’s farmers, livestock producers and businesses greater access to the world’s consumers. He thanked the House for passing TPA and said, “We look forward to a swift resolution in the Senate.”

Moving toward TPP

American Soybean Association President Wade Cowan said passage of TPA helps U.S. trade negotiators better represent farmers heading into finalization of TPP and other critical negotiations. “We are again encouraged by the House’s commitment to TPA and encourage the same commitment from the Senate,” Cowan said. “For the better part of a decade, our partners at USTR have been charged with baking a cake without having access to the full complement of ingredients, if you will. TPA would give them the authority and the resources they need to represent most completely the needs of American farmers in global trade agreements.” Congress has granted TPA to presidents for decades, going back to the World War II era, as a way to smooth the path to trade pacts.

IOWA FARM BUREAU SPOKESMAN JUNE 24, 2015

Editorial

EPA’s reasoning in biofuels ruling seems questionable, economist says BY DIRCK STEIMEL

h e E nv i r o n m e n t a l Prot ection Agency (EPA) appears to have latched on to a ques tionable reading of Congressional intent last month when it proposed reduced biofuel requirements in the Renewable Fuel Standard (RFS), according to a recent analysis by Jonathon Coppess, a University of Illinois agricultural economist. And then the agency doubl ed down on it, he said. “It is very difficult to square the (RFS) statute’s words with the EPA’s reading COPPESS of them,” Cop pess wrote in his June 11 analysis. In essence, the economist said, Congress intended the RFS to “push” the oil refining and blending industries to dramati cally improve consumers’ access to biofuels in a fairly short time. But when the petroleum industry repeatedly failed to accomplish those goals, the EPA rewarded it by easing back on the obligations, he said.

Long delays

For a long time, it seemed that EPA was gun shy and really didn’t want to put out the biofuel requirements. The agency was bound to get pummeled from crit ics on both sides. But after months of delays, the EPA in May proposed renewable fuel requirements for 2014, 2015 and 2016, as it was required to by Congress. The 2014 biofuel requirement, set at just under 16 billion gallon, reflected the actual usage of biofuels during the year that was already over. But the agency set the require ments for 2015 and 2016 well below the levels set when Congress updated the RFS back in 2007. In 2015, the proposed requirement is 16.3 billion gallons, a long shot from the 20.5 billion required in the RFS. For 2016, the EPA also missed the mark, proposing a 17.4 billion gallon requirement, instead of the 22.3 billion gallons set in

Spokesman Editor DIRCK STEIMEL News Coordinator TOM BLOCK Senior Features Writer TERESA BJORK Ag Commodities Writer BETHANY BARATTA Photographer/Writer GARY FANDEL

the RFS. The EPA’s reasoning is very curious, Coppess writes. Under the RFS, Coppess notes that the EPA is allowed to reduce the require ments only if it would cause severe econom ic or environ mental hardship, or if there is an inadequate supply of biofuels. The agency, he said, has locked onto the fact that there is inad equate supply to justify its action, but it takes some major gyrations for the agency to get there. The EPA admits that there is actually no shortage of ethanol to get to consumers. Ethanol plants in Iowa and other states certainly have the capacity to ramp up pro duction to meet the requirements set in the RFS. Instead, the agency says it re duced the biofuel requirements because there is an inadequate supply system to get the volumes set in the RFS to consumers. But, as Coppess points out, that’s not what Congress had in mind when it drafted and passed the RFS. Lawmakers really

designed the RFS to compel the refiners and blenders to find ways to increase etha nol availability to consumers. The mandate is on the petroleum industry, not on the consumer, he writes.

Turning RFS upside down

“The EPA fails to explain how a statute designed to put a man date on refineries and blenders to compel them to make dramatic change can also include a waiver provision to relieve them of the obligation if they do not get the product to consumers,” Coppess writes. “Under this proposed rule, the EPA appears to be turning the

statute upside down.” Lawmakers are also starting to question the EPA on its unusual reading of the RFS. At a hearing on the RFS in the Senate Homeland Security and Governmental Af fairs Committee, Iowa Sen. Joni Ernst noted the EPA has now decided to use “available refueling infrastructure” as a condition to waive the standard even though Congress express ly rejected that when they set the law. “Can you explain why EPA is blatantly overlooking the law?” Ernst asked the EPA’s Janet McCabe. McCabe answered that, under the agency’s interpretation, Con gress intended for these fuels not only to be produced, but to be used. “So when you have a situa tion where the fuels cannot in fact be delivered to consumers on the time frame that was set out in the statute, and Congress provided this waiver authority, we believe it’s a reasonable inter pretation for us to reduce the volumes to a level that still will comply with Congress’ intent to drive the fuels,” she said. However, as Coppess notes, it still sounds like the agency is rewarding the petroleum indus try for missing its requirements under the RFS.

Bill for national, science-based GMO labeling program gains momentum A bill to stop the potential patchwork of state bills on label ing of foods made with geneti cally modified crops or GMOs continued to find support in the U.S. House last week. The bipartisan measure, auth ored by Rep. Mike Pompeo of Kansas and Rep. G.K. Butterfield of North Carolina, attracted sup port in a hearing at the House Energy and Commerce subcom mittee. Farm Bureau also supports the national GMO labeling effort. The measure would create a uniform national standard for products made with GMO crops that is based on sound science and

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To place a free exchange ad, contact your county office for information. The Iowa Farm Bureau Spokesman (ISSN 0021-051X) is published weekly by the Iowa Farm Bureau, 5400 University Avenue, West Des Moines, IA 50266. Subscription price of $2 per year for mailing in the continental USA included in the dues of Farm Bureau members in Iowa. Additional subscription fee required for mailing outside the continental USA. Periodical postage paid at Iowa Falls, Iowa. Members please send change of address to your county Farm Bureau office. Postmaster send address changes (POD FORM 3579) to Iowa Farm Bureau Spokesman, P.O. Box 670, Iowa Falls, Iowa 50126. Letters to the editor and statewide news articles should be sent to Editor, Iowa Farm Bureau Spokesman, 5400 University Avenue, West Des Moines, Iowa 50266. Reprinting of Spokesman articles and photographs is not allowed without permission.

overseen by the U.S. Department of Agriculture and the Food and Drug Administration. It would supersede state GMO labeling laws, such as Vermont’s. At the hearing, Rep. Kurt Schrader of Oregon, a former org anic farmer, stated that the Safe and Accurate Food Labeling Act provides truth and honesty in labeling and that a national stan dard is critically needed.

Critical label information

Greg Jaffe of the Center for Science in the Public Interest told the subcommittee that mandated labeling “should be left for the Iowa Farm Bureau Federation: Craig Hill, President; Joe Heinrich, Vice President; Denny Presnall, Secretary-Treasurer and Executive Director; Edward G. Parker, General Counsel. Board of Directors: District 1 - Carlton Kjos, Decorah. District 2 - Charlie Norris, Mason City. District 3 - Phil Sundblad, Albert City. District 4 - Doug Gronau, Vail. District 5 - Mark Buskohl, Grundy Center. District 6 - Nick Podhajsky, Traer. District 7 - Andrew Hora, Riverside. District 8 - Calvin Rozenboom, Oskaloosa. District 9 - Will Frazee, Emerson.

most critical pieces of informa tion. If we mandated everything on a label, the consumers don’t know what is the most critical information … The things that are most critical are either safety information or nutritional infor mation. This doesn’t qualify.” In addition, panel members reiterated the safety of foods made with biotech crops. Witnesses at the hearing said they knew of no instances where GMOs were proven to be unsafe. Rep. Frank Pallone of New Jersey added that he views anti-GMO activists in the same light as anti-vaccination zealots.

Kleckner’s work helped make U.S. ag a global power BY DIRCK STEIMEL “The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you lived and lived well.” – Ralph Waldo Emerson It seems as though Emerson wrote these words just for an Iowa farmer, who cared enough, was passionate enough and worked hard enough to make American agriculture a global business. U.S.-grown crops, meats and other agricultural products flow to markets all over the world, meeting the growing demand for high quality food, creating jobs and pumping dollars back into the economies of Iowa and other agricultural states. Indeed, agri culture is one of the few sectors that the United States enjoys a trade surplus. America’s ag export success is no accident. It required relentless work, and special talents, to devel op the relationships required to increase the exports of U.S. farm goods to international markets and to bust down well-entrenched trade barriers. It took a man like Iowa farmer Dean Kleckner. Kleckner, who passed away last week at age 82, was a visionary who clearly saw that the future of American agriculture — with its vast ability to produce — would revolve around exports. Kleckner worked tirelessly to build those export markets and support farmers’ incomes as presi dent of the Iowa Farm Bureau Federation for a decade begin ning in 1975 and as president of American Farm Bureau Federation for 14 years. Later, he served as chairman of Truth about Trade & Technology (TATT), which sup ports free trade. Kleckner’s plain-speaking manner, humor, listening skills and sharp memory helped him build relationships everywhere he went. And that was a lot of places. In all, Kleckner traveled to more than 80 countries and met countless foreign leaders, ag min isters and others to help pry open doors for U.S. agricultural prod ucts. He served on trade advisory committees for three U.S. pres idents, working to help farmers gain access to export markets while helping to spur related businesses. Kleckner grew up on a farm near Rudd, a small town in Floyd County. He started farming fulltime at 18 after his father died, a responsibility that kept him from attending college. Yet Kleckner’s vision for the future of U.S. agriculture stretched far and wide — all around the globe, really. And American farmers are much better off because of that.

4 JUNE 24, 2015

IOWA FARM BUREAU SPOKESMAN

Crops are doing well with warmer weather, Kooiker said June 18. He estimated about one inch of rain fell from a couple different storm systems. “We’ve got some corn that we planted in our rye that’s just coming up. The other corn is about shin-high,” he said. Soybeans planted in rye have also emerged. He was finished spraying and planned to mow grass hay and alfalfa before last weekend.

“With that little bit of rain we had last week and the heat, things have really jumped, “ Pope said June 18. Corn is kneeand waist-high. Soybeans are really growing, Pope said. “Early-planted beans are really looking nice.” Most farmers were finishing spraying their soybean fields. Progress with the hay crop was variable in the area. “It’s anywhere from done and put away to still standing,” he said.

“There’s not been too much rain here. We’ve been in the field about every day,” Bader said June 18. Many area farmers are finishing up spraying soybeans, he said. “Corn is about waist-high now and looks good. It’s got a good, dark green color,” Bader said. Soybeans are also growing well. Most of the first crop of alfalfa has been put up, and farmers are mowing and baling grass on waterways, he said.

“It’s been wet. I think we had 5 inches of rain total from the last two fronts that went through,” Langbein said June 18. “There’s a lot of corn spraying yet to do and still some side-dress rigs in the field waiting to get out there.” Pastures look good but the wet weather has made putting up hay a challenge, he added. “Some guys have gotten hay up, some got it ruined and there’s still some to cut,” he said.

“Crops are liking the heat and probably hit the nitrogen,” Peterson said last week. Most farmers had finished spraying their corn crops. The early-planted soybeans look really good, he reported. “Late-planted soybeans on other farms are finally fully emerged, and pods are starting to place,” Peterson added. Farmers were moving grain to town.

Crops still look good even after a series of storms that dumped an excess of 4 inches of rain in the area, Prizler said June 18 “There is some yellow corn on sidehills, and some soybeans have damped off, but it’s pretty isolated in the usual wet places,” he said. Most early-planted corn is at the V-6 or V-7 stage and looks good, Prizler said. Farmers are waiting for fields to dry to spray soybeans, he said.

Bentley said he was able to get back in the field last Wednesday after receiving 4.5 inches of rain the previous week. He was about halfway done with post-emergence soybean herbicide application. Corn is starting to close the row but could still use more sunshine, he said June 18. “There’s areas of corn showing signs of wetness, and some that looks pretty good,” he said. “Miraculously, we got our hay up without getting rained on.”

“Corn has spiked up with nitrogen, and it’s pretty dark green and growing really well,” Brennecke said June 18. Soybeans are variable in the area. Some soybean plants are small; others haven’t emerged. Some fields haven’t been planted. “There’s still some that haven’t been planted and probably won’t be at this point.” Some farmers have been able to put their hay crop up. Grazing has been excellent for her cow/calf pairs.

“Crops look good here. Corn is waisthigh or better, and beans look good,” Rinner said June 18. Recent rains have been spotty, with southern parts of the county getting much higher amounts, he said. Farmers are trying to finish up spraying and sidedressing corn and get a start on spraying soybeans, he said. Most of the first cutting of alfalfa is complete, and rains have spurred good regrowth, Rinner said.

Rootworm, armyworm on the march in Iowa corn fields BY TOM BLOCK The official arrival of summer means it’s time to be looking out for crop-killing insects and diseases, according to Iowa State University Extension specialists. Armyworms and northern corn rootworm are both showing up in Iowa fields, as is northern corn leaf blight. Armyworms have surfaced as a problem in some no-till fields seeded with cover crops, which served as a host for the destructive insects. “This is only an occasional pest in Iowa, but seems to be somewhat

common this year,” said Mark Johnson, Iowa State University Extension field agronomist in central Iowa. Johnson said he went on a call earlier this month where armyworms had virtually wiped out about 15 acres that had been in a rye cover crop and were advancing to an adjacent area that had a wheat cover crop. “We were consistently finding one or two larvae per plant in the part of the field where they had advanced to,” he said. “If you have any fields that had any grass crop or weed this spring, make sure you scout them for armyworm.”

Larry Krapfl, Latham Seeds regional sales manager in western Iowa, said he saw armyworms attacking corn planted along a brome strip in Woodbury County. There were five to eight worms per square foot, and they had a vigorous appetite, he said. Armyworms have also been spotted in Monona, Ida, Crawford and Shelby counties, he reported. Scouting will be critical, since armyworms can destroy large amounts of crop in just one evening, Krapfl said. “Start by scouting the brome grass strip around all fields. Look for chewed areas on leaves, and then begin looking at the base of

the brome plants in early morning to start determining your count,” he said. “Anything over 5 armyworms per square foot is definitely a time for action. If you have to spray an insecticide on the outside of your fields, remember to also include the fenceline brome grass.”

Rootworm hatch peaking

It’s also time to start scouting for corn rootworm (CRW) larvae, said ISU Extension entomologist Erin Hodgson. Research suggests about 50 percent of egg hatch occurs between 684-767 accumulated degree days, which has already occurred in southern Iowa.

Are conditions right for white mold in soybeans? BY NATE PIERCE Every season, the question comes up about white mold in soybeans. However, there is no good way to predict white mold with absolute certainly. Four areas need to be addressed to evaluate the odds of white mold having an effect on soybean yields this fall — environment, inoculum, host and time. While there are not “cura- PIERCE tive” pesticides for white mold, there are practices a grower can

CROPS TODAY implement to reduce the likelihood of infection. Start with the micro-environment within the soybean canopy. Oftentimes, this environment is much different from the environment we are living in. It is typically wetter, more humid and warmer prior to canopy, and it becomes cooler after crop canopy. White mold prefers wetter and cooler temperatures for infection and growth during the later vegeta-

tive phases through the R3 growth stage. If temperatures become warmer than normal during this phase of soybean development, the white mold infections will be less severe. The inoculum refers to the disease’s ability to be present in the field. White mold is a soil-borne disease. If the field has a history of white mold, then it is safe to assume that the field has spores present for infection. Scouting is challenging when determining if white mold has infected the soybean plants. Infection sites can be seen at the leaf axis, but it is often difficult to spot and can be confused with stem canker. Knowing the host or soybean

variety in this case is also important for determining the odds of infection. Varieties have different levels of susceptibility to white mold. While no varieties are resistant to white mold, some are more tolerant than others. All of this needs to happen over time for the white mold disease to infect, grow and develop. Weather pattern changes can greatly im pact the infection and growth of white mold in the soybean crop. Soybean growth and development can impact white mold growth as well. Nate Pierce is a Growmark crop protection territory manager. His email address is npierce@ growmark.com.

Every field should be scouted for corn rootworm injury, with the highest priority given to continuous-corn fields and areas with Bt performance issues. Much like last year, saturated soils may reduce rootworm populations in some areas, Johnson said. “The best time to dig roots to check for CRW larval feeding is late June, early July,” he noted. Technology can be helpful in tracking rootworm outbreaks with Monsanto’s Genuity Rootworm Manager mobile application and a website called InsectForecast.com. “The Genuity Rootworm Man ager App and InsectForecast.com have made it easier for farmers to scout effectively throughout the growing season,” said Sean Evans, technology development manager for Monsanto.

Diseases emerge

Northern corn leaf blight has already been reported from several fields in southern Iowa, according to ISU Extension plant pathologist Alison Robertson. The disease was widespread in Iowa last year, and favors the cool, wet weather experienced this spring. “Since the fungus survives the winter in corn residue, we likely have above-normal inoculum present,” Robertson said. Fungicide applications may be needed if the disease is present on 50 percent or more of the plants and wet weather continues, she said.

IOWA FARM BUREAU SPOKESMAN JUNE 24, 2015 5

Study says equipment sharing, wind helped spread avian flu virus BY BETHANY BARATTA Migratory birds caused the initial outbreak of avian influenza, but other factors have helped spread the virus, a report from the U.S. Department of Agriculture (USDA) confirmed last week. The USDAâ&#x20AC;&#x2122;s Animal and Plant Health Inspection Service (APHIS) has been conducting investigations for the past several months, trying to pinpoint the transmission pathways of highly pathogenic avian influenza (HPAI). The report spanned more than 80 commercial poultry facilities and included analyses conducted with help from academic, federal, state and industry partners. In its report, APHIS concluded there was not â&#x20AC;&#x153;substantial or significant enough evidence to point to a specific pathway or pathways for the current spread of the virus,â&#x20AC;? the report said. The study included data on the characteristics and biosecurity measures in place on the infected farms. Researchers also noted wind and airborne viruses as possible causes of viral spread and conducted a genetic analysis of the viruses detected in the United States. â&#x20AC;&#x153;APHIS scientists believe wild birds were responsible for introducing HPAI into commercial poultry. However, given the number and proximity of farms affected by HPAI, it appears the virus is spreading in other ways as well,â&#x20AC;? the report said. Genetic analyses of the HPAI viruses suggest that independent introductions and transmission among farms are occurring in several states concurrently, the report noted. APHIS found that genetic mat-

erial from the HPAI virus could be detected in air samples taken inside and outside infected poultry houses, which supports the thought that the virus can be transmitted through air, the report noted. Preliminary analysis of wind data showed a relationship between sustained high winds (25 miles per hour or greater for two days or longer) and an increase in the number of infected farms five to seven days later. Studies showed that biosecurity practices were lax on some farms, which then helped spread the virus. â&#x20AC;&#x153;Although APHIS cannot at present point to a single statistically significant pathway for the current spread of HPAI, a likely cause of some virus transmission is insufficient application of recommended biosecurity practices,â&#x20AC;? APHIS said in the report. â&#x20AC;&#x153;For example, APHIS has observed sharing of equipment between an infected and noninfected farm, employees moving between infected and noninfected farms, lack of cleaning and disinfection of vehicles moving between farms, and reports of rodents or small wild birds inside poultry houses.â&#x20AC;? The USDA said it will be working with the industry and its partners to â&#x20AC;&#x153;implement more stringent biosecurity proceduresâ&#x20AC;? while it continues to identify and mitigate other disease pathways. The full report can be accessed at http://1.usa.gov/1ekJruD. New reports of avian influenza have been slowing in Iowa, but last week another suspected case was reported at a commercial layer facility in Wright County, potentially the sixth case in that county. To date, 76 sites and 32.7 million birds in Iowa have been affected by the virus.

Branstad seeks federal disaster aid for avian flu

Iowa Gov. Terry Branstad last week signed a disaster emergency proclamation for 18 Iowa counties affected by highly pathogenic avian influenza (HPAI) to assist with disposal and clean-up efforts on those sites. The governor also requested a presidential disaster declaration for Buena Vista, Sioux, Webster and Wright counties due to the bird flu outbreak. The request included federal unemployment assistance, crisis counseling and

disaster legal services to help affected farmers. The virus outbreak could affect as many as 1,500 jobs in Iowaâ&#x20AC;&#x2122;s poultry sector, Branstad said. The declaration would also ease restrictions on Interstates 29 and 35 to allow for quicker disposal of birds from infected sites. The state-level disaster emergency proclamation temporarily allows impacted chicken and turkey producers to dispose of manure and compost generat-

ed at a premise infected with HPAI as a Bulk Dry Animal Nutrient under Chapter 200A of Iowa Code. The material can only be moved off-site if the U.S. Department of Agriculture has certified that the material is virus-free, according to the governorâ&#x20AC;&#x2122;s office. The Iowa proclamation applies only to impacted chicken and turkey producers in the 18 counties with confirmed cases of HPAI and is effective until July 15.

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6 JUNE 24, 2015 IOWA FARM BUREAU SPOKESMAN

U.S. cattle herd continues slow rebuild, USDA says

he U.S. cattle herd is continuing to slowly rebuild with more cattle on feed and fewer marketings during May, the U.S. Department of Agriculture said last week in its monthly cattle on feed report. Cattle and calves on feed for slaughter market in U.S. feedlots with capacity of 1,000 or more head totaled 10.6 million head on June 1, the USDA said. The inventory was 1 percent above a year ago. Iowa had 650,000 cattle on feed in feedlots with capacity of 1,000 head or more, 2 percent above last year at the same time. Placements in U.S. feedlots during May totaled 1.71 million, 10 percent below 2014. Iowa placements jumped 20 percent above last year’s level to 65,000 head. U.S. marketings of fed cattle during May totaled 1.71 million, 8 percent below 2014. The May marketings were the lowest since the cattle on feed report series began in 1996. Iowa marketings during May totaled 74,000 head, 6 percent above the May 2014 total of 70,000 head.

Banning trans fat

U.S. soybean industry sources said they plan to ramp up pro-

billion gallons. The annualized rate would surpass the Environmental Protection Agency’s 2015 proposed Renewable Fuel Standard blending volume by 1.5 billion gallons.

Barges halted

duction of high oleic soybean oil following last week’s final determination by the Food and Drug Administration (FDA) removing the “generally regarded as safe designation” for partially hydrogenated oils. Partially hydrogenated oils, in cluding non-high oleic soy oil, are the primary artificial source of trans fats in processed foods. The FDA provided a three-year time period for the food industry to replace most uses of partially hydrogenated oils.

Ethanol record

The United States recently tied its highest weekly average for ethanol production with 992,000 barrels per day, according to data from the Renewable Fuels Association. The four-week average measures at 973,000 barrels per day, which equals an annualized rate of 14.92

Flooding halted barge traffic on the Illinois River last week, and high water levels prompted the CME Group to invoke an emergency provision waiving liability for unshipped corn and soybeans for the first time in more than two years. Barge lines voluntarily stopped shipping traffic after heavy rains, river merchants said. CME, which owns the Chicago Board of Trade (CBOT) and other markets, said a majority of shipping stations on the river were unable to load crops due to high water levels. Traders said the disruptions would likely have a limited impact on grain trading because they will probably be over before the end of the month.

Dairy outlook sours

U.S. milk prices have fallen considerably in the last eight months, and a surplus of milk on the international market is likely to squeeze U.S. producer margins further as 2015 progresses, according to the Rabobank Food & Agribusiness Research and Advisory (FAR) group’s second quarter 2015 Dairy Quarterly report. “While we are well off the record level achieved in late 2014, producer milk prices in the U.S. are still 15

Weekly Average Price Comparison Price comparisons: Week ending: 06/19/2015 05/22/2015 06/20/2014 Cattle - National 5 Area Confirmed Sales 6,937 61,634 74,383 5 Area 65-80% Choice Steers: Wtd Avg. $150.00 $159.67 $149.74 Average Weights (Estimate) Cattle 1331 1338 1304 Boxed Beef Choice 600-750 (5 day avg.) $251.32 $260.25 $240.89 Boxed Beef Select 600-750 (5 day avg.) $246.23 $247.62 $233.37 Five Day Average Hide and Offal Value $12.29 $13.54 $15.56 Cattle - Interior Iowa – Minnesota Supply: 3,240 16,681 18,787 Average Price Choice Steer: Live Basis $151.48 $159.47 $149.61 Average Price Choice Steer: Dressed Basis $240.41 $252.73 $238.62 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# $301.75 $291.27 $261.38 #1 Muscle Thickness 700-800# $234.66 $236.03 $213.99 Hogs -- Interior Iowa – Minnesota ISM Friday Weighted Average Carcass Price $75.61 $78.72 $122.78 Average Weights (Estimate) Hogs 280.9 280.8 287.0 Sows 1-3 300# and up: Average Price $34.20 $25.47 $73.67 Pork Loins 1/4” trimmed 13 - 19 pound $103.17 $123.32 $164.01 51-52% 200 pound Pork Carcass (5 day avg.) $83.59 $84.86 $124.66 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $21.89 $37.97 $76.75 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $46.17 $67.66 $115.27 Sheep -- National Slaughter Lambs Negotiated Sales 1,500 2,500 5,100 Choice & Prime Wooled and Shorn 130 -150 lbs $155.00 $171.25 $153.75 Iowa Large Eggs (cents per dozen) $1.71 $1.85 $0.83 Young Hen Turkeys: 8 -16# -- Eastern (cents/lb) 117.98 111.06 106.55 *Iowa Ethanol Prices $/gal $1.40 $1.59 $2.08 Futures: Corn $3.53 $3.60 $4.53 State Average Cash Corn Price $3.31 $3.40 $4.39 Basis -$0.22 -$0.20 -$0.14 Futures: Soybean $9.72 $9.24 $14.16 State Average Cash Soybean Price $9.43 $8.93 $13.95 Basis: -$0.29 -$0.31 -$0.21s Slaughter Under Federal Inspection Estimates Estimates Actuals 2,100,000 2,108,000 1,847,000 Hogs: Cattle: 542,000 562,000 579,000 Sheep: 36,000 36,000 41,000 Estimated Numbers through Saturday Cash Corn and Soybean prices are the Iowa Average Prices as reported by IDALS. NA-No report at time of publication. ***Confidentiality of data prohibits publication of this report under Livestock Mandatory Reporting. The report will be published when and if enough data is aggregated to meet the 3/70/20 guideline.*** Source: USDA Livestock and Grain Market News

percent and 57 percent higher than those presently being paid to dairy farmers in the Netherlands and New Zealand,” says Rabobank Global Dairy Strategist and report lead author Tim Hunt. “Sustaining these kinds of premiums is going to get tougher in coming months, as the impacts of an oversupplied international market filter back home.” The price of key dairy commodities fell further in international markets in the second quarter and now sit at the lowest levels since 2009 as the result of ongoing weakness in China and Russia. The U.S. dairy market has held up better than the international market as wholesale market pricing for nonfat dry milk and whey eased, but cheese and butter prices actually rose and remained at a

significant premium to prices in international markets in mid-June.

Ethanol imports

U.S. oil traders are importing sugar-based ethanol from B r a z i l i n g r e a t e r vo l u m e s due to a higher-than-expected emphasis on advanced fuels in the Environmental Protection Agency’s recent ethanol blending proposals, according to a Reuters news report. U.S. market sources said imports of Brazilian ethanol have totaled as much as 10.6 million gallons in the past two weeks. Brazil’s ethanol is made from sugarcane and qualifies for the advanced fuel credit because it more drastically cuts greenhouse gas emissions compared to cornbased ethanol.

CME Class III Milk Futures Closing prices June 19, 2015

Contract

Settle Last Week

Contract

June 2015 July 2015 August 2015 September 2015 Spot Prices Block Cheese Barrel Cheese Butter NFDM Grade A

$16.74 $16.33 $16.51 $16.71

October 2015 November 2015 December 2015 January 2016

$16.80 $16.83 $16.69 $16.40

Milk Prices June Class III June Class IV

$16.73 $13.85

$16.81 $17.51 $17.65 $17.73

$1.7000 $1.6600 $1.9150 $0.8750

Settle Last Week $17.69 $17.65 $17.37 $16.75

Iowa Hay Auctions Dyersville, June 17

Hay, large squares, good, $110-175; fair, $65-85; utility, $40-65; large rounds, good, $100-120; fair, $60-80; utility, $12.50-57.50. Straw, large squares, good, $45-56; fair, $22.50. Mixed, large squares, good, $130-170; large rounds, good, $80.

Ft. Atkinson, June 17

Hay: small squares, first crop, $75-100; large squares, first crop, $45-85; second crop, $50; large rounds, first crop, $40-105; rye large rounds, $50. Grass: large squares, $75. Straw: small squares, $180; large squares, $95.

Grass, small squares, premium, $3.50; good, $2.50; fair, $2; large rounds, premium, $45; good, $35; large squares, good, $40; fair, $30. Straw, large squares, $25; small squares, $3.

Rock Valley, June 18

Alfalfa, large rounds, premium, $137.50160; good, $122.50-135; fair, $90-115; large squares, good, $125-130. Grass, large rounds, premium, $140; good, $115-125; fair, $95-110; utility, $65-82.50. large squares, premium, $130-170; good, $125; fair, $90-107.50. Mixed, large rounds, good, $145; utility, $75. Corn stalks: large rounds, $30-55.

Perry**, June 13

Alfalfa, small squares, premium, $7-8; good, $4.50; large squares, premium, $45; good, $40; large rounds, premium, $70; good, $45.

Yoder**/Frytown, June 17 Alfalfa, large rounds, $50-62.50. Grass: large rounds, $47.50.

**Perry and Yoder hay auction prices are per bale. All other prices are per ton.

Contacts: Dyersville, 563-875-2481; Ft. Atkinson, 563-534-7513; Perry, 515-321-5765; Rock Valley, 712-476-5541; Yoder, 319-936-0126

With market weakness and costs of production remaining high, marketing the 2015 corn crop year is difficult so far. The graph this week sums up much of the problem. Iowa State University’s cost estimates are used for total and variable costs per acre. The green gross revenue per acre line is an estimation calculated by taking daily futures prices, subtracting a basis estimate of 35 cents and using a yield of 180 bushels per acre. Given these assumptions, current markets can’t cover total costs but do cover variable cost estimates and contribute toward fixed. Tight margin times don’t necessarily spell disaster; they just make a risk management attitude more important.

IOWA FARM BUREAU SPOKESMAN

USDA reports will set tone for markets

he midsummer U.S. Department of Agriculture (USDA) reports tend to set the tone for markets through the summer. Bearish reports in June 2014 heightened the bearish attitude-setting markets on course to slide into their fall lows. How this year’s reports play into the picture is uncertain, but timing studies indicate prices are due for lows. While the trade will be mostly focused on plantings, the June 1 grain stocks may be just as important. The wheat number is the inventory left at the end of the crop year. More important, the corn and soybean stocks numbers provide insight into how many bushels of each might remain at the end of their marketing years on Aug. 31. The June 1 stocks of corn may be particularly important. There is a debate as to whether the feed and residual demand is following the pattern they had the last four years or reverted to the pattern that prevailed prior to that. If the older pattern prevails, and there’s reason to think it will, it would suggest the current USDA feed and residual forecast for the year is too small and the ending stocks too large. If so, the June 1 corn stocks would need to be 4.6 billion bushels, or less. Both the Dec. 1 and March 1 soybean stocks numbers indicated last year’s crop was not as large as forecast. The June 1 stocks would need to be no larger than 700 million bushels to remain consistent. If it’s that or less, look for the USDA to account for it with a larger residual number on the next supply/demand number, a move that would shrink ending stocks a little more. Mostly, the trade seems interested in the planting numbers, for soybeans in particular. The recent extreme wetness across the southern Corn Belt and Mid-South has turned the focus to soybean plantings and how many acres might end up being designated prevent plant. With the survey for the June 30 report wrapping up on June 15, we’d only expect a small portion, if any, of the recent weather impact to be picked up by this report. For now, the trade may be dependent on anecdotal evidence to assess the impact of the late planting problems. The first hard data won’t be available until the first preliminary Farm Service Agency acreage report in the middle of August. With the final crop insurance dates for soybeans upon us, wetness across a broad area and generally low prices, we’d expect some acreage to be designated prevent plant. But for now, we wouldn’t expect more than 2 million to 3 million acres. Informa Economics is still looking for soybean plantings to be 86.76 million acres, 2 million higher than the USDA. Our analysis suggests the USDA’s March number, 84.6 million, fit the overall planting matrix best. Any shift to prevent planting will need to be taken off the June 30 forecast. Informa’s corn planting forecast, 88.78 million, is close to the USDA and close to what we expect. The USDA will revise wheat plantings too. It will be as important to check the winter wheat harvested number as much as the wheat planting numbers for the spring-sown crops.

Cash Strategist Positions at a glance

CORN 2014

3-10-14 — 10% sold @ $4.82

3-10-14 — 15% sold @ $4.78

3-31-14 — 10% sold @ $4.95

11-20-14 — 15% sold at $3.78

BEANS

2015

100% unsold

50% unsold

2014

2015

12-23-13 — 10% sold @ $11.72

12-31-13 — 10% sold @ $11.35

5-27-14 — 15% sold @ $12.07

2-18-14 — 10% sold @ $11.38

3-3-14 — 10% sold @ $11.72

5-12-14 — 10% sold @ $12.23

85% unsold

6-2-14 — 10% sold @ $12.24

40% unsold

Iowa Farm Bureau members have free 24/7 access to AgriVisor daily updates through the Members portion of the IFBF website: www. iowafarmbureau.com. The AgriVisor link is on the homepage under the Daily Market chart.

CORN STRATEGY

JUNE 24, 2015

Cash Strategist Hotline: 1-309-557-2274 800

Central IL Daily Cash Corn 700

2014 CROP: The trade’s nega-

600

tive fundamental bias remains, but technical indicators suggest prices are ripe for a turn. Even though the marketing year window is shrinking, we still see better opportunities coming. We think it smart to lock up basis on remaining inventories. Hold off making flat price or futures-based sales.

Cycle Lows 20-week 40-week

500

Corn prices appear to be coming to the end of the correction that has been underway since late December. There is a chance the cash price could dip to one more new low before the 40-week cycle bottoms, and that should come soon, if it already hasn't. Based on the current low, the primary objective for the next move up is close to $4.50, but prices may do well to reach $3.80-$3.90 by summer's end. Support is good at $3.25-$3.35.

400 300 5 1/2-year low

200 7/9/13

2/28/14

10/20/14

6/12/15

2/1/16

40 30

2015 CROP: Given the larger cyclic parameters, the long-term technical outlook suggests better prices should come. Continue to hold off sales. FUNDAMENTALS: The recent

weather across the Corn Belt has made the industry less certain about

how good this crop might be, but high yield expectations continue. Still, heavy rains in central/eastern areas will cause some denitrification. And in the west/northwest, scattered dry pockets persist. Weather will remain a guiding influence through the summer. The reports on June 30

SOYBEAN STRATEGY

15, there were still 11 million acres to plant, mostly in the southern Corn

Basis Chicago Futures

-20 7/18/14

10/8/14

12/30/14

3/24/15

6/12/15

regarding corn stocks and planted acreage are important. Oftentimes, they set the tone for market action the next few months.

Central IL Daily Cash Soybeans 1550

1150

950

The recent low not only looks like the most recent 16- to 18-week low, but it also may have ended the correction off last December's high. Even though prices might have minor slippage after the most recent small rally, technical indicators suggest the short-term trend may have turned up.

16- to 18-week cycle lows

1350

A close over $9.60(prices are currently at $9.50) would position the Central Illinois cash price to challenge $10 again, and maybe $10.40 if it closes over $10. Downside risk should be contained by $9.20-$9.25.

750 7/9/13

2015 CROP: The weather/

FUNDAMENTALS: As of June

0 -10

1750

2014 CROP: Demand remains a positive for the market. Good crush margins are helping keep basis levels firm and flat cash prices strong. Better marketing opportunities are still expected to wrap up sales. planting difficulties are having the most impact on soybean prices. Technical features fit with potential fundamental changes hinting at better prices. The current strength should only be used for making necessary sales.

2/28/14

3-year low

10/20/14

6/12/15

2/1/16

400

Belt and Mid-South. The persistent wetness and the achievement of the FSA final plant dates raises the possibility of acreage being designated prevent plant, cutting into the soybean acreage. Demand remains generally robust. Good crush margins are sustaining a high processing rate, and exports remain season-

300 200 100 0 Basis Chicago Futures

-100 7/18/14

10/8/14

12/30/14

3/24/15

6/12/15

ally strong. The June 30 stocks and planting reports will play a part in late summer prices.

Iowa Corn & Soybean Basis CORN: (basis vs. July futures, 6/17/15) NW SW

$3.39 NC $3.36 -0.20 -0.23 $3.39 SC $3.37 -0.20 -0.22

$3.36 -0.23 SE $3.38 -0.21

SOYBEANS: (basis vs. July futures, 6/17/15)

NW $9.34 -0.35 SW $9.45 -0.24

$9.38 -0.31 SC $9.44 -0.25

NE $9.46 -0.23 SE $9.56 -0.13

Neither AgriVisor LLC nor the Iowa Farm Bureau Federation is liable for any damages that anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendation or advice or any other act of omission. This publication is owned by the Iowa Farm Bureau Federation with advice provided by and copyrighted by AgriVisor Services LLC, 1701 Towanda Avenue, Bloomington, Ill., 61701. No reproduction of any material in whole or in part of this page may be made without written consent.

Iowa farmers heavily favor ARC program Growers must enroll annually to receive program benefits; deadline is Sept. 30. Iowa’s farmers overwhelmingly favored the Agriculture Risk Coverage county-based (ARCCO) program during the 2014 farm bill sign-ups, according to U.S. Department of Agriculture (USDA) data on program elections. As expected, a huge percentage of the corn and soybean base acres across the United States elected ACR-CO during the 2014 farm bill sign-up period, when farm owners and operators made decisions on reallocating base acres, updating yields and choosing Price Loss Coverage (PLC) or ARC county or individual coverage. In Iowa, 97 percent of farms

elected ARC-CO coverage for corn while just 3 percent elected PLC. Nationally, 91 percent of farms elected ARC-CO for corn and 9 percent elected PLC. The numbers were similar for soybean acres, with 98 percent of Iowa farms electing into ARC-CO and 2 percent in PLC. Nationwide, 96 percent of farm operators selected ARC-CO for soybeans and 4 percent selected PLC. As expected, Price Loss Cov erage was more popular for southern U.S. crops like peanuts and rice. Overall, 99 percent of long grain rice farms, 99 percent of peanut farms and 94 percent of medium grain rice farms elected PLC. Very few farms selected the Agriculture Risk Coverage In div idual Coverage (ARC-IC) program. More farms have opted into the ARC or PLC programs than were

previously enrolled under previous farm bill commodity programs, according to the USDA. More than 1.76 million farmers elected ARC or PLC. Previously, 1.7 million producers had enrolled to receive direct payments, which were replaced by ARC and PLC in the 2014 farm bill.

Enrollment begins

Even with the farm bill election decisions made, farmers still have to enroll in their program of choice annually. The USDA last week an nounced that farmers can begin formally enrolling in the ARC and PLC programs for 2014 and 2015 at county Farm Service Agency (FSA) offices. The enrollment period will end Sept. 30. The enrollment process will need to be done each year throughout the five-year farm bill.

JUNE 24, 2015

IOWA FARM BUREAU SPOKESMAN

Ernst questions EPA on handling of RFS

BY TOM BLOCK The Environmental Protection Agency’s (EPA) recent proposal to lower renewable fuels blending requirements “flies in the face of the law,” Iowa Sen. Joni Ernst said last week at a Senate hearing on the agen cy’s management of the Renewable Fuels Standard (RFS) program. “When passed by Congress, the original intent of the RFS was to cre ate consumer choice for clean fuel by spurring investment in research, pro duction and infrastructure,” Ernst said at the Senate Homeland Security and Governmental Affairs Committee hearing. “Un fortunately, the EPA is now using the lack of infra structure as an excuse for setting biofuels levels lower than origi nally mandated, which flies in the ERNST face of the law.” When Congress passed the RFS in 2005, only two types of waivers were included — lack of supply and severe economic harm, Ernst pointed out. Lawmakers at the time specifically rejected “available refueling infrastruc ture” as a reason for a waiver, she said. “Despite a clear direction from Congress, EPA has now decided to use ‘available refueling infrastructure’ as a condition to waive the standard, even though Congress expressly rejected that when they set the law. Can you explain why EPA is blatantly over looking the law?” Ernst asked EPA Office of Air and Radiation Assistant Administrator Janet McCabe, who was testifying before the Senate panel.

EPA’s own interpretation

McCabe answered that the EPA is leaning on the “inadequate domestic supply” provision as the reason for lowering the biofuels usage numbers, arguing that the language is “very simple” and does not “explicitly say exactly what that means.” “(As) is often the case, it’s EPA’s job to reasonably interpret congres sional language in implementing the statute,” McCabe said. “When you have a situation where the fuels can not in fact be delivered to consumers on the time frame that was set out in the statute … we believe it’s a reason able interpretation for us to reduce the volumes to a level that still will comply with Congress’ intent to drive the fuels. “To set the standards at the statutory volumes would simply not be appropri ate. There is too far a way to go.”

Creating uncertainty

The EPA’s failure to uphold the original RFS volumes is creating uncertainty for ethanol producers and reducing investments in new technolo gies, Ernst said. “I would argue that we are caught in a very vicious cycle with the produc ers not knowing what that volume will be, so we actually delayed production and research, and the furthering of those types of fuels,” she said. “So without the standards being set, we don’t know where to go.” Ernst also pressed McCabe on an unanswered invitation by Iowa’s entire Congressional delegation asking the EPA to host a public hearing in Iowa on the proposed RFS obligations. The agency will hold a hearing in Kansas City on June 25.

Affairs, who trotted out the well-worn food-vs.-fuel argument even with corn prices now below the cost of production. “After a decade of implementation, we must ask ourselves if the RFS goals of yesterday are worth the increased costs to our food, gas and the environ ment,” Lankford said. “From the price

of livestock feed, to the additional costs to restaurant owners, to the everyday Americans who live with more expen sive grocery bills — this program has had a negative impact. “Beyond real concerns over engine damage, there have also been additional costs to motorists at the pump. On

the environmental front, new studies are highlighting the program’s negative impact on our land, water and air.” However, North Dakota Sen. Heidi Heitkamp, the committee’s ranking member, said the problem isn’t with the RFS, but rather EPA’s administra tion of it.

“EPA’s failure to issue RFS rules in a timely manner that is consistent with the law should not be misconstrued as a sign that the program is broken. Up until 2013, the program worked as intended to spur innovation and growth in the advanced and cellulosic biofuels space,” she said.

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Well-worn attacks

Last week’s Senate hearing also provided an forum for critics of the RFS, led by Oklahoma Sen. James Lankford, chairman of the Senate Homeland Security and Governmental Affairs Subcommittee on Regulatory

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