Corn

"Dust" off your corn borer scouting skills and check for whorl-feeding injury. Fall surveys conducted last year revealed large overwintering densities of European corn borer in Northern and East-central Illinois. Extension entomologists suggest farmers prepare for economic infestations this summer, since they are infesting Southern IL.

Corn that is knee high is susceptible to egg laying. Most attention should be paid to the early-planted fields for signs of first-generation injury.

Corn rootworms may hatch into fields with very small root systems. In east-central Illinois, severe root injury may result in many of these first-year cornfields. Corn rootworm densities were very large in East Central IL last year. Since corn was planted late in many areas of Illinois this year, it's important to be watchful for fall armyworms. The damage often looks worse than it is, but an insecticide may be justified if 75% of the plants have whorl-feeding damage with larvae present. While you are at it, look for other caterpillars–army worm, corn earworm, fall army worm, stalk borer, yellowstriped armyworm–also feed in corn whorls.

Soybean aphids were found June 19 in Kendall Co., and have also been spotted in IN, MI, WI, & IA. Later-planted soybeans are more likely to suffer economic damage.

The 2002 Farm Bill, representing a collection of compromises between the House and Senate Bills, became law on May 13, 2002. It is a six-year bill entitled "Farm Security and Rural Investment Act of 2002."

Commodity Title. In general, the commodity title offers the same type and level of income support that has been provided during the past four years by establishing (1) a loan rate program that increases the loan rates for corn and wheat while decreasing the rate for soybeans, (2) the continued use of AMTA payments, and (3) a counter cyclical program that replaces the oilseed and Market Loss Assistance (MLA) payments.

Loan Rate Program. The national average loan rate for corn was increased from its current level of $1.89 per bushel to $1.98 for the 2002 and 2003 crops. The soybean rate was lowered from $5.26 to $5.00, while the wheat rate increased from $2.58 to $2.80. For 2004-07, the soybean rate remains at $5.00 while the corn rate drops to $1.95 and the wheat rate drops to $2.75. The Macon County 2002 loan rate will be $2.11 for corn and $5.22 for soybeans.

Counter Cyclical Program. For the 2002 and 2003 crops, counter-cyclical (CC) payments for corn will be triggered when the 12-month average price falls below $2.32. For the 2004 - 07 crops, the price trigger increases by three cents per bushel (matching the three cent drop in loan rate) to $2.35. For soybeans, the national average price below which CC payments are triggered is $5.36. For wheat, it is $3.34 for 2002 - 04 and $3.40 for 2004 -07. If the 12 month national average price is below the trigger price, then the payment is equal to the difference between the trigger price and average price times program bushels. The maximum payment is the difference between the trigger price and loan rate times program bushels.

One of your major decisions is whether to update your base acres and yields at the FSA office. The decision is not an easy one to make, and you need to think it through, with the help of a decision tool. You can find a spreadsheet program to help you make decisions about updating on the Farmdoc Internet website at: http://www.farmdoc.uiuc.edu/manage/FarmBill/decisiontool.htm

Direct Payment Program. Fixed payments, like AMTA payments, are made on traditional program crops, plus soybeans. Program yields for direct payments are those that have been used for AMTA payments in conjunction with the establishment of program yields for soybeans. The direct payment rate is 28 cents per bushel for corn; 44 cents for soybeans; and 52 cents for wheat.

Income Support Level to Illinois Producers. The 2002 Farm Bill generally increases the level of income support that has been provided during the past three years to Illinois corn and soybean producers. Under "typical" scenarios where recent support has been $60 to $80 per acre, it is estimated that the new bill would provide about $10 to $15 more per acre.

Payment Caps. Limits per individual producer are $40,000 for direct payments; $65,000 for counter-cyclical payments; and $75,000 for LDP's and MLG's. The total limit of $180,000 is effectively increased twofold to $360,000 through the 3-entity rule, and because there is no limit on the use generic certificates (allowing unlimited LDP and MLG payments) $360,000 is not an effective cap.

This is a summary of an article written by: Dr. Bob Hauser , Department of Agricultural and Consumer Economics. For the complete article go to http://www.farmdoc.uiuc.edu/policy/farmbill02.html

On June 11, the first of two meetings was held to discuss the 2002 Farm Bill. The meeting was sponsored by: University of Illinois Extension, Richland Community College, Macon County Farm Bureau, Macon County S.W.C.D., N.R.C. S. and F.S.A. Over 90 farmers from six counties attended. Dr. Robert Hauser, professor of agricultural economics, University of Illinois, analyzed the 2002 Farm Bill and compared it to the 1996 Freedom to Farm legislation.

Dr. Hauser pointed out one of the major issues in the 2002 Bill is whether or not to update the base acres and yields on your farm. The Department of Agricultural and Consumer Economics has created a 2002 Farm Bill Decision Tool Spreadsheet to help with the analysis that can be downloaded free at: http://www.farmdoc.uiuc.edu/manage/FarmBill/decisiontool.htm

The information need to use the spreadsheet is the planted acres and the yield by farm for the years 1998 through 2001, as well as, your current program base acres and yields. If you don't have access to a computer, but, would like assistance in preparing your analysis, contact Paul Mariman at University of Illinois Extension at 877-6042.

A second meeting, Farm Bill 102, will be held in the last part of July or early August as soon as Farm Bill implementation procedures are known. You'll hear FSA and NRCS staff discuss details of program sign-up and answer some of the technical questions that are still being worked out by USDA. Watch for media announcements about the meeting, as well as for a meeting announcement in the mail.

Corn and soybean loan rates changed substantially with the 2002 Farm Bill: Champaign: $2.07, 5.20; Christian: $2.06, 5.20; Coles: $2.06, 5.14, Dewitt: $2.07, 5.16; Douglas: $2.08, 5.17; Edgar: $2.05, 5.16; Ford: $2.07, 5.19; Iroquois: $2.07, 5.14; Livingston: $2.02, 5.13; Macon: $2.11, 5.22; McLean: $2.03, 5.16; Moultrie: $2.10, 5.19; Piatt: $2.08, 5.19; Shelby: $2.06, 5.17; Tazewell: $2.05, 5.20; Vermilion: $2.04, 5.18.

How does Illinois corn get into the Mexican food chain? To help answer the question, a Who's Who of Illinois Agriculture convened a statewide conference in mid-June. The list included; the Illinois Corn Growers, Illinois Department of Agriculture, C-FAR, University of Illinois Extension, College of ACES, and the U.S. Grains Council.

Speakers from the four major Mexican corn processors Minsa, Agroinsa, Portimex, and Maizoro started off the conference with similar comments. They want high quality #1 White Corn and #2 Yellow Corn to supply the Mexican consumers and identity preservation is high on the list of desires of the processors. Mexico will be short 5 to 7 million metric tons of corn year. Mexico is the largest per captia consumer of corn in the world and with the population projections they see the shortfall increasing in future years.

Mexico has 2.5 million farmers that represent 25 percent of the population. The farmers earn a living on 1 to 100 hectares of land. The largest farm one family can own legally is 100 hectares or less than 250 acres. Many families' try to make a living on substantially smaller tracks of land. This leads the government to protect Mexican farm prices by limited import quotas. However, as the NAFTA agreement ends open trade will be established and the tariffs should disappear.

Currently the majority of U.S. corn imported into Mexico comes from Texas and Nebraska by rail. Due to the geography of the country it is costly to transport corn from the western Mexican States where the majority of the corn is produced across the central mountain range to the major population centers along the gulf coast. There may be some transportation advantage to bring Illinois corn in to the Mexican gulf cities by water.

There are issues that will have to be worked out to if you want to trade directly with companies in Mexico. To pass into Mexico without duties and tariffs you must have a NAFTA Certificate of Origin, a Phytosanitary Certificate stating that the corn is toxin free, Application for Inspection and Certification of Plants and Plant Products for Export, and a Shipper's Export Declaration. Oh, Mexico, accepts no GMO grains.

Mark your calendars! August 20 is the Macon County Plot Day. This year is going to be a little different since there will be three door prizes; but they will be substantial. In order to qualify for the drawing you have to tour the seed plot and have the seed representatives sign the entry card. Rumor has it that this year's lunch will be chicken!

When the Legislature recently adjourned, state-funded budgets were cut on two programs that have been integral to Illinois farmers, agricultural research and agricultural education.

The Council for Food and Agricultural Research suffered a 54 percent cut in its budget compared to the past three years. C-FAR coordinates food and agricultural research projects at universities in Illinois to provide consumers with quality and healthy foods, produced efficiently, and with a protective eye toward the environment of the state. C-FAR was prepared to work with the nine percent cut proposed by Governor George Ryan, however Legislative leaders whittled away at the appropriation and reduced it to just under $7 million dollars, down from $15 million in recent years.

The result will be reduced funding for research projects currently underway, and no funding for any new research initiatives. The cuts will not only hurt farmers, but every Illinois citizen. C-FAR research recently has converted an apple into a vaccine for the childhood disease RSV. Research has been underway to reduce the onset of breast cancer with increased soy protein consumption. Similar research has worked to reduce heart disease with soy products. For now, those projects will be on hold. The future just moved farther ahead in finding solutions to those problems.

Similarly, agricultural education received a six percent budget cut when the lawmakers went home. While not as severe as the cuts that were made to the agricultural research budget, agricultural education supporters were lobbying for a 50 percent budget increase. Because of the increasing demands for graduates in agriculture and natural resources, agricultural education had sought funding of $3 million, up from the $2 million dollar appropriations of the past several years. Funds would have been used to serve the needs of the largest industry in Illinois, which employs 24 percent of the states' workforce. To fill the thousands of newly created jobs every year, there has to be an investment to educate agriculture science teachers, develop curricula, and stock laboratories to educate students. These future graduates will not be raising corn and beans. They will produce and process high value fruits and vegetables, operate food service businesses, and help protect our natural soil and water resources.

The Governor and the members of the Illinois House and Senate had difficult choices to make, given the prospect for declining income to balance an expanding budget. However, two of the cuts that were made mortgaged the future of everyone who will eat and live in Illinois.