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March 6, 2020
Costello named ag chief
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Farm values steady
COMMODITY CLASSIC
By Tom C. Doran
AGRINEWS PUBLICATIONS
SPRINGFIELD, Ill. – Gov. J.B. Pritzker appointed Jerry Costello II as director of the Illinois Department of Agriculture. Costello, of Smithton, joins the governor’s cabinet from his position as the director of law en forcement for the Illinois Depa r t ment of Natural Resources, which he had held s i nc e May 2019. He repre s ent ed t he 116th District in the Illinois Costello House of Representatives from 2011 to 2019, during which he served as chairman of the Agriculture and Conservation Committee. He also served on the PritzkerStratton Agriculture Transition Committee. He graduated from Southern Illinois University Carbondale and joined the U.S. Army, serving during Operation Desert Storm as part of the U.S. Army’s 82nd Airborne Division. Following his military service in Iraq, Costello returned to Illinois where he became a police officer and started a family. Initially a patrolman, he would rise through the ranks and become assistant police chief. Born and raised in southern Illinois, his family has a small farm in Franklin County, producing crops and raising cattle. Costello and his wife, Lori, have three children. “With farming playing an important role in his family’s history and a career of public service, there’s no better person to lead the Illinois Department of Agriculture at this time than Jerry Costello,” Pritzker said. “Our agriculture sector drives our state’s economy to the tune of $19 billion every year, and I’m confident that Jerry’s deep experience will bring a steady hand to the department and continue the impressive growth of this vital industry.” See CHIEF, Page A5
SEE SECTION B
INSIDE
Trials test new saturated buffer design A7 Illinois hemp growers face challenges B5 Meet IBA Points Show Program winner D3 AgriTrucker D1
Classifieds C3
Alan Guebert D6
Farms For Sale C1
Antiques C8
Jerry Welch D7
Auction Calendar B1
Lifestyle C7
Business D7
Livestock D3
Calendar C6
Opinion D6 Vol. 43 No. 2
CONTACT AGRINEWS: 800-426-9438
‘Cautious optimism’ for 2020 in survey By Tom C. Doran
AGRINEWS PUBLICATIONS
AGRINEWS PHOTOS/JAMES HENRY
A huge trade show, educational sessions, entertainment and the opportunity to network with thousands of America’s farmers are hallmarks of Commodity Classic, produced by the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers and Association of Equipment Manufacturers. The event was held this year in San Antonio, where it is scheduled again next year and will celebrate its 25th anniversary.
Trade, not aid USDA isn’t planning more MFP payments
farmers. Days later, the U.S. Department of Agriculture announced plans were being made for a second year of MFP payments.
By James Henry
HELPING HAND Perdue said these payments contributed significantly to the incomes of U.S. farms in 2018 and 2019, directly changing the color of their bottom lines. “These have been tough years — the prevented plant acres of last year from 20 million and then the trade disruption and retaliation there, not being able to market their crops, backing up over elevators and then even quality problems that have contributed, I think everyone has valued and appreciated the Market Facilitation Program,” he said. “I can tell you, sincerely, I asked our economist to calculate the trade-disruption damage the best he could across all sectors and it would disregard for region or crop or anything like that and tell me where those numbers were. I didn’t try to push my finger on the scale in any way to do that.” The payments did not favor specific geographies or large farms over small farms, Perdue said. On average, he noted, farms under 100 acres received $55 per acre, while larger farms got $47 an acre.
AGRINEWS PUBLICATIONS
SAN ANTONIO — Farmers should not expect another round of government trade aid, stressed Secretary of Agriculture Sonny Perdue at Commodity Classic in San Antonio. Asked on Feb. 28 if the U.S. Department of Agriculture is working on a fourth tranche of Market Facilitation Program payments, he answered succinctly: “No.” The MFP was created in 2018 to assist farmers who were hurt financially by Chinese retaliatory tariffs. It made up the bulk of $16 billion in USDA trade assistance that the White House authorized in 2019. About $14.5 billion was designated for direct payments to farmers through the MFP. About $1.4 billion went for purchase of commodities to be distributed through the Agricultural Marketing Service. The remaining $100 million was earmarked for trade promotion efforts. However, in all caps, President Donald Trump on Feb. 21 tweeted there is defi-
Agriculture Secretary Sonny Perdue foresees greater trade opportunities for U.S. farmers, erasing the need for additional direct payments through the Market Facilitation Program. nitely a chance farmers could again see MFP payments in 2020. He wrote: “IF OUR FORMALLY TARGETED FARMERS NEED ADDITIONAL AID UNTIL SUCH TIME AS THE TRADE DEALS WITH CHINA, MEXICO, CANADA AND OTHERS FULLY KICK IN, THAT AID WILL BE PROVIDED BY THE FEDERAL GOVERNMENT, PAID FOR OUT OF THE MASSIVE TARIFF MONEY COMING INTO THE USA!” Last May, Trump vented his frustration on Twitter as trade talks with China began to stall and implied a new round of trade aid would come for
See TRADE, Page A5
Success in Stewardship Corn growers beat drum for conservation By James Henry
AGRINEWS PUBLICATIONS
SAN ANTONIO — The innovative spirit of corn growers in Illinois and Minnesota was showcased at Commodity Classic in San Antonio. The National Corn Growers Association and Environmental Defense Fund launched the Success in Stewardship Network to celebrate and accelerate the use of agricultural conservation practices on U.S. farms. The first programs recognized by the new network were the Precision Conservation Management Program from the Illinois Corn Growers Association and the Minnesota Corn Innovation Grant Program from the Minnesota Corn Growers Association. “Sustainably growing corn
is an important way that we can preserve our resources, but also our competitive advantage,” said Kevin Ross, NCGA president. Ross “The U.S. is full of growers committed to meeting society’s needs while reaching our goals of healthy soil and clean water. NCGA feels we have reached a tipping point where we have an opportunity to begin recognizing corn farmers more broadly for their efforts to stay productive and profitable and manage the challenge of climate change all while accelerating sustainable farming practices. “A regular drumbeat about the value and importance of stewardship along with local and state examples can drive this movement.” Here is what other leaders said during the Success in Stewardship Network kickoff:
“This network is really going to be key to accelerating the conservation movement across the country. We feel this is critical to Eideberg protecting our land and our water for future generations. We feel very strongly that it’s time to break down the notion that conservation and conservation practices are only for elite farmers. This is for everybody. Instead, we know that farmers across the country are already utilizing these practices. We want this new network to establish a peer-to-peer conversation that is going to be critical to expediting the adoption across all land of these valuable practices.” Callie Eideberg, director of agricultural policy and special projects ENVIRONMENTAL DEFENSE FUND
See SUCCESS, Page A5
CHICAGO — Farmland values remained relatively steady through the fourth quarter of 2019 and the agricultural outlook was more optimistic than a year ago, according to a Federal Reserve Bank of Chicago survey. Overall, the Seventh Federal Reserve District saw no yearover-year change in the agricultural land values in 2019. However, values for “good” farmland in the fourth quarter of 2019 overall were up 1% from the third quarter, based on 142 survey respondents representing agricultural banks across the district. In the fourth quarter of 2019, Indiana and Iowa experienced year-over-year increases in agricultural land values of 2%, whereas Illinois and Wisconsin experienced decreases of 1% and 2%, respectively, from the last quarter of 2018. However, Illinois agricultural land values from the third to the fourth quarter of 2019 increased by 2% and Indiana was unchanged. The Seventh Federal Reserve District includes the northern two-thirds of Illinois and Indiana and all of Iowa, Wisconsin and Michigan. See VALUES, Page A4
Growing demand in 2029 outlook Tom C. Doran
AGRINEWS PUBLICATIONS
WASHINGTON — A 10-year forecast for the food and agriculture sector projects rising global demand, continued strong trade competition, and for the U.S. to remain competitive in the global export market. “Rising global demand for varied diets and protein is projected to stimulate demand for feed grains and soybeans,” the U.S. Department of Agriculture stated in its Agricultural Projects to 2029 report. “Although trade competition will continue to be strong, the U.S. is projected to remain competitive in global agricultural markets due, in part, to product quality and market efficiency.” The forecasts were prepared by the Interagency Agricultural Committee, led by the Office of the Chief Economist, World Agricultural Outlook Board, and USDA. The projections assume the trade disputes to continue during the duration of the projection period. Net U.S. farm income is expected to increase by $1.4 billion in 2020 to $93.9 billion and remain between $88.8 and $98.6 billion for the remainder of the decade, trending upward during the latter half. While agricultural crop prices are tending to trend upwards only slowly in nominal terms, U.S. trade disputes with China that existed at the time of these projections were formulated have dampened expectations, particularly for soybeans. See OUTLOOK, Page A4