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Features

Farms granted centennial status

[JULY 1, 2002]  SPRINGFIELD — The Illinois Department of Agriculture has designated farms owned by John Warner IV of Clinton and Elizabeth H. O’Herin, principal partner of C.H. Moore Farms L.P., as Centennial Farms.

To qualify as a Centennial Farm, a straight or collateral line of descendants must own the agricultural property for at least 100 years.

"I am pleased to be able to recognize John Warner IV and Elizabeth H. O’Herin," said Agriculture Director Joe Hampton. "This designation honors them today and their ancestors of yesterday who labored through prosperity and adversity to maintain their family farms.

"The Centennial Farm program helps to reinforce that family farming remains a viable entity in Illinois agriculture."

The Illinois Centennial Farms program has recognized more than 7,000 farms since its inception in 1972.

John Warner IV is president of Moore & Warner Farm Management in Clinton, Ill. The firm currently manages farmland in Illinois, Iowa, Kansas and Colorado. They offer professional farm management services for landowners anywhere in the United States.

[News release]

Biotech crop use benefits environment

[JUNE 29, 2002]  The Council for Agricultural Science and Technology, a non-profit consortium of scientists, released a comprehensive report on June 25 detailing the environmental safety and environmental benefits of commercial biotechnology-derived soy, corn and cotton crops.

"In the past, isolated studies regarding the environmental impact of biotechnology-derived crops appeared to present conflicting results," said Teresa Gruber, the executive vice president of CAST. "Teams of researchers assembled by CAST have reviewed and analyzed the published studies in the context of current farming practices, and the results clearly show that soil, air and water quality are enhanced through the responsible use of current biotechnology-derived soybean, corn and cotton crops."

Three independent teams of CAST researchers reviewed the available scientific literature to compare the environmental impacts of biotechnology-derived and traditional crops. The researchers are affiliated with Washington State University, the University of Illinois, Clemson University, and the National Center for Food and Agricultural Policy.

"The study was based on nine criteria, including changes in pesticide use patterns, impacts on beneficial insects, pest resistance, soil management, land use efficiency, impacts on biodiversity and, of course, human exposure," said Allan Felsot, Washington State University professor.

Specific findings for one of the most widely planted biotech-derived crops, herbicide-tolerant soybeans, include the following:

•  Soil quality — No-till soybean acreage in the United States has increased significantly since the introduction of herbicide-tolerant soybeans. No-till often results in less soil erosion, dust and pesticide runoff as well as increased soil moisture retention.

•  Water quality — Use of biotechnology-derived soybeans enables farmers to use a more benign herbicide that rapidly dissipates in the soil and water.

•  Air quality — Greenhouse gas emissions from some farm operations decreased by an estimated 88 percent as a result of biotech soybeans planted in a no-tillage system, which may help slow global warming.

•  Biodiversity — The no-till practices commonly associated with biotech soybeans provide a more favorable habitat for birds and other wildlife. No-tillage systems provide food and shelter for wildlife such as pheasants and ducks.

•  Land use efficiency — Biotechnology-derived soybeans may lead to increased yields through improved weed control and the adoption of narrow-row spacing.

The study found similar benefits for corn and cotton crops derived through biotechnology. David Onstad from the University of Illinois was one of two scientists who prepared the corn portion of the report.

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"We literally reviewed hundreds of scientific documents, and we concluded that biotechnology-derived corn has had a positive effect on the environment," Onstad said.

Corn was a more complicated crop to review because there is Bt corn to control insects, there are herbicide-resistant hybrids, and there are hybrids used for animal feed as well as human food.

"Definitely, Bt corn has reduced pesticide use," Onsatd said. "And there was no evidence that non-target species are affected in a negative way by biotechnology-derived hybrids. There was no evidence that these hybrids have or will become off-site weeds either."

"Also, we expect that human exposure to toxins has been reduced by the use of biotechnology-derived corn hybrids — both toxins from chemical pesticides as well as naturally occurring toxins such as aflatoxin."

Onstad says that although we have had positive environmental impacts from biotechnology-derived corn, soybean and cotton, we need to continue to monitor present and future biotechnology-derived crops and conduct public-based research to measure their efficacy. He says the report contains 10 recommendations about the research needed to effectively monitor emerging biotech crops and technologies.

The USDA’s "Prospective Plantings," published in March, estimated that 20 percent of Illinois’ corn acreage was planted with biotechnology-derived insect protection and 3 percent was planted with biotechnology-derived herbicide tolerance. The same report estimated that 71 percent of Illinois’ soybean acreage was planted with biotechnology-derived herbicide tolerance.

The United Soybean Board, a nonprofit organization representing soybean farmers in United States, commissioned the report.

Founded in 1972, CAST is a nonprofit organization composed of scientific societies and many individual, student, company, nonprofit and associate society members. CAST assembles, interprets and communicates science-based information regionally, nationally and internationally on food, fiber, agricultural, natural resource and related societal and environmental issues to stakeholders — legislators, regulators, policymakers, the media, the private sector and the public.

The full report is available at the following Web address:

http://www.cast-science.org/biotechnology/
index.html#biotechcropsbenefit.

[U of I news release]

U of I report provides guidance
on updating acres, yields

[JUNE 27, 2002]  URBANA — A recent University of Illinois Extension report examines changes in the new farm bill and offers producers a method for selecting between four alternatives in updating acres and yields. "Updating Acres and Yields under the Farm Security and Rural Investment Act of 2002" was prepared by Gary Schnitkey and Dale Lattz, U of I Extension farm management specialists.

"The new law includes provisions authorizing direct and counter-cyclical payments for 2002 through 2007 crops," said Schnitkey. "These payments will be determined using base acres and program yields. Farmers and landowners have one-time decisions to make concerning these acres and yields. They either can ‘update’ acres to reflect acres from 1998 through 2001 or they can ‘not update’ and have acres based on those used to calculate Agricultural Marketing Transition Act (AMTA) payments.

"If base acres are updated, farmers also can update yields used to determine counter-cyclical payments."

Under the new law, three types of payments are available for program crops — direct payments, counter-cyclical payments and loan deficiency/marketing loan payments.

Direct payments are available for corn, soybeans, wheat, oats, grain sorghum, barley, upland cotton and rice. Payments will be made for 2002 through 2007 crops, and the payment will be the same in each year. Payments for a crop on a farm will equal per-bushel payment rate times program yield times the result of base acres times .85.

"The 2002 program implemented a counter-cyclical program for all program crops," said Schnitkey. "Those payments equal the trigger price, which is the higher of loan rate or season-average price, times yield times base acres times .85."

The trigger price, he explained, equals a target price minus the direct payment rate. The season-average price is calculated by the USDA for 12 months, with the first month occurring near the beginning of harvest.

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"The yield is an important variable that farmers have to make a decision about," he noted.

Schnitkey summarized the options available to producers.

"When base acres are not updated, programs yields are also used to determine counter-cyclical payments," he said. "Farmers can choose to update acres and use program yields in determining counter-cyclical payments. Another option is to update acres and use the 70 percent difference method to update yields. Finally, farmers can update acres and use the 93.5 percent method to update yields."

Schnitkey and Lattz note that in some cases farmers will have to trade off the corn base acre for the ability to update yields. For example, some farms have a relatively high corn base compared to the current corn plantings. Updating acres will result in the loss of corn base acres, suggesting that the farm maintain its current base acres. However, maintaining current base acres will not allow a farmer to update yields, meaning that the counter-cyclical payments will be lower than when base acres are updated.

The report examines a number of options available to producers in making these choices.

Copies of the report can be accessed on the Web at http://web.aces.uiuc.edu/farm.doc/
manage/newsletters/fefo02_11.html.

[U of I news release]

Weekly outlook: Reports and prices

[JUNE 26, 2002]  URBANA — Weather conditions and crop prospects will be the dominating price factors for the next few months, said a University of Illinois Extension marketing specialist.

"U.S. corn and soybean yield prospects may be the most important price factors, but developments in other areas will also be critically important," said Darrel Good. "In particular, the market is taking note of dry conditions in Australia, flooding in parts of China and Russia, and the slow development of the monsoon in India.

"For coarse grains, world production has been at a relatively high level since 1995-96. Individual countries have had shortfalls in production, but the U.S. has had consistently large crops since 1996."

For wheat, Good added, world production has been relatively large since the consecutive small crops of 1994-95 and 1995-96.

"The current relatively low level of U.S. and world stocks and the generally low prices of wheat and coarse grains suggest that production shortfalls could have significant price impacts," he said. "The market is beginning to reflect production concerns, but price action may be relatively conservative until the U.S. crops reach the critical reproductive stages of growth."

Good’s comments came as he reviewed the markets where corn and soybean prices continue to demonstrate seasonal strength, influenced by a high rate of consumption and U.S. and world crop concerns.

For soybeans, both the domestic crush and exports continue at a pace above that projected by the USDA. The expected return of China to the import market should keep the pace of U.S. exports high, especially in the light of continued problems in Argentina.

"Based on the USDA’s weekly export inspection report, U.S. exports through June 20 were 5 percent larger than cumulative shipments of a year ago," said Good. "For the year, the USDA has projected a 3.5 percent increase. Unshipped sales as of June 13 totaled some 97.5 million bushels, compared to 74.2 million bushels of outstanding sales on the same date last year.

"Similarly, the cumulative domestic crush during the first three quarters of the marketing year is estimated at 1.3 billion bushels, 4.7 percent larger than the crush during the same period last year. For the year, the USDA has projected an increase of 3.3 percent."

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Good said that for corn, the pace of exports compared to that of last year, accelerated in the second and third quarters of the marketing year. The USDA’s export inspection report indicated that cumulative shipments as of June 20 were 3 percent larger than the total of a year ago. However, unshipped sales as of June 13 totaled 252.5 million bushels, compared to 290.1 million on the same date last year. For the year, the USDA projects that exports will reach 1.925 billion bushels, 10 million less than shipments of a year ago.

"Corn exports were very large during the summer of 2001," said Good. "The recent rapid pace of shipments will have to continue if the USDA projection is to be reached."

The USDA’s June Grain Stocks report will be released on June 28. The market will use the June 1 corn stocks estimate to gauge the rate of domestic use of corn during the third quarter of the marketing year.

"If the pace of consumption was in line with the USDA projection, June 1 stocks of corn should have been near 3.67 billion bushels, about 250 million less than on the same date last year," said Good. "Soybean stocks on June 1 should have been near 690 million bushels, based on the estimates of use during the third quarter of the year."

In addition to the grain stocks report, the market will have considerable interest in the acreage report to be released on the same date.

"Late planting, particularly in the eastern Corn Belt, suggests that the acreage report will reflect a fair amount of intentions rather than actual plantings," said Good. "Still, the report will be an important benchmark for judging the final planted acreage of the major crops. The market expects the report to show a significant switch from corn to soybean acreage due to the lateness of the planting season in some areas.

"The report is also expected to reflect failed wheat acres being planted to other crops. Some private analysts have projected a significant increase in sorghum acreage, compared to March intentions, due to replanting of failed wheat acreage. In addition to the acreage of individual crops, the report will give some perspective on the magnitude of abandoned acreage."

[U of I news release]

Weekly outlook: USDA reports

[JUNE 25, 2002]  URBANA — It is premature to suggest that the highest corn and soybean prices of the year have been established, said a University of Illinois Extension marketing specialist.

"Consumption of both corn and soybeans continue at a rapid pace, and considerable production uncertainty remains," said Darrel Good. "Some sort of averaging strategy for pricing remaining old crop inventories still appears attractive.

"New crop soybean prices are still below the Commodity Credit Corporation (CCC) loan rate. Harvest delivery prices for corn are marginally below the loan rate in most areas. The market is offering an average price of about $2.15 for delivery from harvest to the summer of 2003. That is equal to the midpoint of the USDA’s projection for the marketing year average price."

Good’s comments came as he reviewed recent USDA reports. The monthly reports of World Agricultural Supply and Demand Estimates and Crop Production provided some fundamental support for corn and wheat price prospects. In the case of wheat, the USDA now forecasts the 2002 U.S. crop at only 1.823 billion bushels, which is 63 million smaller than the May forecast and 135 million smaller than the 2001 harvest. The forecast represents the smallest crop since 1988. U.S. stocks at the end of the 2002-03 marketing year are projected at 555 million bushels, the smallest year-ending inventory in six years.

Wheat production in the rest of the world is forecast at 540.2 million tons. That forecast is 2.6 percent larger than the 2001-02 crop but 4.2 million tons smaller than the May forecast.

"Compared to last month’s forecast, smaller crops are expected in Australia, China, eastern Europe and the former Soviet Union," said Good. "World wheat stocks are expected to decline for the third consecutive year. Still, wheat supplies are expected to be large enough that consumption can continue at a normal pace."

For corn, the major surprise in the June report was a smaller forecast of the 2002 U.S. crop. The May forecast was based on the March Prospective Plantings report and trend yields. This month, the USDA lowered its expectation of corn plantings by one million acres due to delayed planting in the eastern Corn Belt. In addition, the projected average yield was reduced from 137.9 bushels to 135.8 bushels to reflect the expected impact of late planting.

As a result, the 2002 crop is now forecast at 9.65 billion bushels, 285 million smaller than the May forecast and only 143 million larger than the 2001 crop. With expanded exports and increased domestic processing use of corn, the smaller crop is expected to reduce stocks at the end of the 2002-03 marketing year to 1.3 billion bushels, the lowest level in six years.

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"While this month’s downward revision in the projected size of the 2002 U.S. corn crop was a friendly surprise, the market had a modest response," said Good. "The reduced forecast was logical, but there is still a lot of uncertainty about both acreage and yield. The USDA’s National Agricultural Statistics Service will release an acreage report on June 28. This report will reflect an early June survey, so it will not be the final word on planted acreage.

"However, the report will provide a good benchmark for judging actual planted acreage. Yield prospects will reflect weather conditions for the remainder of the summer. The National Weather Service is projecting near-normal precipitation and temperature for the majority of the growing season. The market will continue to take a wait-and-see attitude about yield prospects."

The June report also contained a smaller forecast of foreign coarse grain production. At 629 million tons, the forecast is 2.2 percent larger than last year’s crop, but 1.7 million tons smaller than the May forecast. World coarse grain stocks at the end of the 2002-03 marketing year are forecast at 111.2 million tons, the lowest year-ending inventory in seven years.

For the 2002-03 U.S. soybean marketing year, the USDA lowered the projection of beginning stocks by 20 million bushels, increased the 2002 crop projection by 20 million bushels, reduced the export projection by 10 million, and increased the projection of year-ending stocks by 10 million bushels. The first projections for the 2002-03 marketing year for the rest of the world will be released next month.

"The average daily cash price of corn in central Illinois moved to the highest level since harvest on June 13, while the highest post-harvest price of soybeans was established on June 5," said Good. "It is common for the highest cash prices of the marketing year to be established in June. The relatively favorable near-term weather outlook suggests that prices may soften somewhat."

However, Good repeated, it is too early to assume that the highest prices of the year have been reached.

[U of I news release]

The farm bill

[JUNE 24, 2002]  With a new farm bill in place, the questions turn to how to make the most of some opportunities this farm bill provides. Keep in mind that information is just now coming out on the bill and is not from the official source (the Farm Service Agency). It just seems like U of I Professor Bob Hauser has just about the best information out there at this time.

Provisions of the farm bill, as now known, are these: the Loan Rate Program, counter-cyclical payments, direct payments, payment caps, Conservation Title, and changes to programs for milk and wool and for mohair, to name a few.

Loan rates were basically increased for corn and decreased for soybeans. The 2002 loan rates are $2.06 for corn and 5.16 for soybeans in Logan County. This is changed from $1.95 and 5.41 for 2001. These rates come in to play with market prices that are below these rates.

The Counter Cyclical Program is based on a 12-month price average, to compensate producers during very low commodity price periods. Payments will be triggered when corn prices fall below $2.32 per bushel for 2002 and 2003, and $5.36 for soybeans. These payments are figured on payment bushels.

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The Direct Payment Program provides a fixed payment of 28 cents per bushel of corn and 44 cents per bushel of soybeans, based on payment bushels.

Many of the other provisions are still being checked out, but for most farmers in our area it looks like about $15 per acre more will be available than under the past farm bill.

For more information, follow the U of I Farmdoc link: http://web.aces.uiuc.edu/farm.doc/
policy/index.html. There is also a calculator there to look at some of those scenarios that are available to you.

[John Fulton]

Honors & Awards

Hartem FFA brings home awards

[JUNE 29, 2002]  Hartsburg-Emden FFA members recently attended the 74th Illinois FFA Convention. Chapter members received numerous awards and recognitions as well as enjoying the main session.

[Hartem FFA members ready for the closing of "Journey of a Lifetime."]

Brittney Kavanaugh received a blue ribbon for her agri-science fair project at the state competition.

Kent Leesman was recognized for his outstanding achievements this past year as a top chapter president, Star Farmer finalist, Grain Production Proficiency winner, and National Risk Management Essay winner.

Natalie Coers was recognized for her achievements as a top ten chapter reporter, as well as participating in the state FFA band.

Nic Coers, Daniel Eeten and Kent Leesman were honored to receive their state FFA degrees at the convention.

Although individual chapter members brought home the awards, the Hartem FFA chapter also gained recognition. Hartem FFA won the Co-op Award, Triple Crown Heritage Award, Century Challenge Sweepstakes Award, and was named a Gold Emblem Chapter. The convention proved to be a show of excellence for all of the FFA members and chapters from across the state.

[News release]

Logan County 4-H Bicycle Show results

[JUNE 26, 2002]  The Logan County 4-H Bicycle Show was on June 15. Ten 4-H’ers participated in this year’s show. Mathew Runyon of Broadwell won the bicycle award, donated by Lincoln McDonald’s Restaurant.

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Ag Announcements

Special baking contests at state fair

[JULY 1, 2002]  Contestants are invited to make gingerbread houses and Spam recipes to enter at the Illinois State Fair in August.

Awards will be given for the most creative entries in the Brer Rabbit® Molasses Gingerbread House Contest at the state fair. Both beginners and gingerbread house enthusiasts are invited to compete for cash and prizes. In 2001, judges picked winning entries ranging from traditional to elaborate, including a castle, a detailed tree house with garden and another resembling the "Old Woman in a Shoe." Any theme entry is welcome that uses Brer Rabbit molasses and is up to a foot tall, wide and deep, base not included. Entrants must also bake and enter one dozen gingerbread cookies.

Winners are selected based on appearance (50 percent), originality and creativity (40 percent), and taste (10 percent). Creators are awarded $150 for first place, $75 for second and $25 for third. People of any age may enter, with one entry per person or group. Several people may work on one entry, but one person represents the group. 

The Illinois State Fair will be one of 70 fairs hosting the Spam® Oven Roasted Turkey Contest. Using the Spam turkey and up to nine other ingredients, contestants are to create an original main dish, appetizer, casserole, stew, stir-fry, salad sandwich or any other recipe. To focus on convenience, cooking time may not exceed 30 minutes.

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Judges select winners based on taste appeal (40 percent), appearance (30 percent) and originality (30 percent). The three best entries win cash awards of $150, $50 and $25, and first-place winners advance to national judging for a $2,500 shopping spree and an all-expense-paid trip to Minneapolis.

To enter either contest, contact the entry department at the Illinois State Fair, 782-6661, by July 15. More details for the gingerbread contest are on page 90, and those for the Spam contest are on page 86 of the general premium book.

[News release]

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