January 24, 2020
Illinois ag chief resigns Sullivan out amid 2012 email fallout By Tom C. Doran
AGRINEWS PUBLICATIONS
SPRINGFIELD, Ill. — At the request of Gov. J.B. Pritzker, John Sullivan resigned as the state’s agriculture director. Jeremy Flynn, Pritzker’s chief of staff, will serve as acting director of the Illinois Department of Agriculture. “Director Sullivan had a long and productive public service career as a state senator, and the governor is grateful for his willingness to serve in the administration. Director Su l l iv a n put together an outstanding team at Sullivan the Department of Agriculture, and as a result, the department’s work thrived,” said Emily Bittner, Pritzker’s communications deputy chief of staff. “However, the governor holds all state employees to the highest ethical standards, and the governor requested the director’s resignation because he is disturbed that then-Senator Sullivan became aware of the existence of the July 31, 2012, email contemporaneously and did not handle it appropriately, including not alerting the inspector general or other authorities. “The governor’s general counsel (Ann Spillane) has shared all of the information she learned from Director Sullivan with the Office of the Executive Inspector General and offered to share this information with all law enforcement agencies looking into this situation. The administration will continue to assist in the ongoing investigation.” The email noted by Pritzker’s office was sent by former state lawmaker and lobbyist John McClain of Quincy. As originally reported by WBEZ public radio in Chicago, the email was sent to the then-Gov. Pat Quinn administration in 2012 asking for a political favor for state employee and Quincy resident, Forrest Ashby.
www.agrinews-pubs.com
China trade deal USMCA President Trump hails farmer benefits By Tom C. Doran
AGRINEWS PUBLICATIONS
WASHINGTON — U.S. President Donald Trump and Chinese Vice Premier Liu He signed the first phase of a trade agreement Jan. 15. As part of the agreement, China will increase its purchases of American goods and services by at least $200 billion
over the next two years, which includes $40 to $50 billion in agricultural products. “Together we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families,” Trump said. “The agreement tears down major market barriers for U.S. food and agricultural exports.
China will now welcome American beef and pork, poultry, seafood, rice, dairy, infant formula, animal feed, biotechnology and much, much more.” The trade deal is the first phase of a comprehensive agreement that will be negotiated with China, according to the Trump administration. See DEAL, Page A4
Agriculture leaders react to agreement By Tom C. Doran
AGRINEWS PUBLICATIONS
WASHINGTON — Major
steps to settle the two-year trade war between the United States and China were taken Jan. 15 and representatives
from agriculture groups joined in cautious optimism about Phase 1 of an agreement. Here’s what they had to say:
“We are optimistic that the day will come when we fully restore our vital trading relationship between the U.S. and China. I can’t
underscore enough how much long-term trade stability with one of our top customers means to Illinois soybean farmers and the ag industry. We see this as a sign of brighter days to come. However, we hope that more details emerge on the status of China’s current tariff on
U.S. soybeans, which were not included in today’s trade deal. A long-awaited win for the soybean industry will come when the soybean tariffs are fully rescinded, and we are anxiously awaiting that announcement.” Doug Schroeder, president
“The signing of the China Phase 1 trade deal is a significant, historic day for the nation’s No. 1 soybean producer, Illinois farmers, who are ready to get back to business and gain their prof-
its from the marketplace. Illinois farmers are ready to regain our trading position with China as a result of the signing. We are well positioned to fulfill China’s demand of soybeans, pork and additional commodities and this agreement provides a pathway for the next generation of Illinois young farmers. Illinois Farm
Bureau remains interested in the dollar amount of agricultural purchases to be made in the coming years by China and the means by which those commitments will be upheld. We look forward to continued phases of a full-fledged free trade agreement.” Richard Guebert Jr., president
“We are hopeful that this deal will meaningfully address China’s problematic trade practices and intellectual property theft, as well as finally establish some stability for American farmers’ export markets. But given the nu-
merous deals that have been reached and then breached in the past two years, we are also skeptical. And without more concrete details, we are deeply concerned that all of this pain may not have been worth it. Not only has this trade war cost farmers billions of dollars worth of sales to China, but it has also bruised our reputation, making other trading partners
reluctant to work with us. To justify these lasting damages, this deal must deliver more than vague, unenforceable, short-term commitments — we need real and lasting behavioral change from China, and we need reliable and robust agricultural export markets.” Roger Johnson, president
ILLINOIS SOYBEAN GROWERS
ILLINOIS FARM BUREAU
NATIONAL FARMERS UNION
See LEADERS, Page A4
Alan Guebert D6 Antiques C7 Auction Calendar B1 Business D4 Calendar C8
Vol. 42 No. 48
CONTACT AGRINEWS: 800-426-9438
WASHINGTON — The U.S. Senate passed a trade deal Jan. 16, revamping the 25-year-old North American Free Trade Agreement. In an 89-10 bipartisan vote, the chamber agreed to send the United States-Mexico-Canada Agreement to President Donald Trump who is expected to sign it. The House passed the same agreement 385-41 in December. The Mexican government already ratified the agreement and the deal awaits the Canadian government’s approval. USMCA includes provisions to improve access to markets for farmers and dairy producers, mandates inspections of factories for labor violations, and establishes new digital trade rules. It also creates stricter regulations for auto part rules of origin and requires at least 40% of the parts for a car to be produced in plants where workers make at least $16 an hour. Canada will increase quotas on U.S. dairy products, benefiting American dairy farmers by $242 million. Canada also will treat wheat imports the same as domestic wheat for grading and pricing. THE NUMBERS A U.S. International Trade Commission report estimates USMCA would raise U.S. real gross domestic product by $68.2 billion (0.35%) and U.S. employment by 176,000 jobs (.12%). The model estimates that USMCA likely have a positive impact on U.S. trade, both with USMCA partners and with the rest of the world. See USMCA, Page A2
What we learned this year is that basically, yields were the same (at multiple speeds). “The new normal for weather is probably abnormal. If we continue to have these rainfalls, and planting windows are narrower, it makes sense to think about these high speed planting options.” Practical Farm Research also focused on closing wheels in high-speed planting, Schwartz said. “The faster you go, the more bounce you’re going to get,” he explained. “These closing wheels are important.
WEST LAFAYET TE, Ind. — The deadline to enroll for Agriculture Risk Coverage or Price Loss Coverage is March 15. The programs provide financial protection from substantial drops in crop prices or revenues. “If you go back to the 2014 bill, most farmers chose the ARC-CO program for both corn and soybeans,” said James Mintert, director of the Center for Commercial Agriculture at Purdue University, during a webinar. “The situation this time is different. For most of you, you don’t want to do exactly what you did in the 2014 bill. You do need to do some additional analysis and think about what you want to do.” This year, the PLC program is much more competitive for corn, he said. For folks in the Eastern Corn Belt, the Agriculture Risk Coverage Individual program could fit in some situations. “Our analysis would suggest that if you have an FSA farm with a 20% production loss in 2019 that could be from prevented planting, reduced yields or a combination of both, then it’s worth taking a look at,” Mintert said.
See SPEED, Page A2
See DECISION, Page A2
Illinois sees decline in winter wheat acreage A7
Classifieds D2 Farms For Sale C1 Jerry Welch D7 Lifestyle C6 Livestock C3 Markets D7 Opinion D6
AGRINEWS PUBLICATIONS
AGRINEWS PUBLICATIONS
INSIDE
AgriTrucker D1
By Tom C. Doran
By Erica Quinlan
SEE SECTION B
B.F. Goodrich rolls into farm tire market D7
Improved market access for farmers, dairy producers
Decision time for PLC or ARC
See RESIGNS, Page A2
Pork producers hopeful on China trade deal C5
to raise exports
AGRINEWS PHOTO/ERICA QUINLAN
Beck’s Hybrids performs research trials each year to provide farmers with useful, farmer-focused data.
Research points to a need for speed By Erica Quinlan
AGRINEWS PUBLICATIONS
ATLANTA, Ind. — Each year, Beck’s Hybrids releases Practical Farm Research results in an effort to provide helpful data to farmers. “The PFR program was started back in the 1960s by Sonny Beck,” said Jim Schwartz, director of PFR at Beck’s Hybrids. “The genesis of it is that, as funding for land-grant universities continued to decline, he felt like someone needed to fill the gap and provide unbiased research on agronomic products and practices — to help
generate data to help farmers succeed.” The PFR team tests products ranging from fungicides to tillage systems. The data is shared in a PFR book and is distributed to tens of thousands of farmers. High-speed planting was a main research topic in 2019. “The crunch to get things planted was very limited last spring,” Schwartz said. “One of the technologies we did a lot of research on was on Speed Tubes from Precision Planting. “In essence, it allows them to plant faster. Instead of planting 5 miles per hour, maybe they can plant 8 miles per hour.