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University of Illinois Extension Macon County
Resource Review

http://web.extension.uiuc.edu/macon/rr/

For more information, please contact:
Macon County Unit
2535 Millikin Parkway
Decatur, IL 62526
Phone: 217-877-6042 / Fax: 217-877-4564
E-mail: macon_co@extension.uiuc.edu

April 2007

2007 Sustainable Agriculture Tours Scheduled

Urbana – University of Illinois Extension is offering tours that provide a behind-the-scenes look at small farms and other unique operations around the state. This year's schedule of six sustainable agriculture tours represents some of the innovative practices and income-producing solutions being developed.

"Sustainable agriculture looks a little different as each operation develops its own niche products, agritourism opportunities and other enterprises to maintain or supplement farm income," said Deborah Cavanaugh-Grant, Small Farm and Sustainable Agriculture Extension Specialist who is coordinating the tours. "This year's tours showcase the creativity of the small farm. And one tour will show a variety of research projects at the University of Illinois Dixon Springs Agriculture Center," she said. Cavanaugh-Grant said that this is the fifth year she has coordinated the tours.

The first tour will be on May 4 to Spence Farm in Fairbury (http://www.thespencefarm.com). Marty and Kris Travis are stewards of Spence Farm-the oldest family farm in Livingston County. Visitors will learn about heirloom crops, heritage breed animals, conservation of natural areas, woodland, management and more. The farm specializes in growing wild ramps, or leeks.

Triple S Farms in Stewardson is the location for the second tour that will take place on June 14. Triple S is a 200 acre diversified organic operation that produces dozens of varieties of organic vegetables, chickens, turkeys, hogs and cattle, organic dent corn, sweet corn, popcorn, soybeans and hard red wheat. Owner Stan Schutte was awarded the Farmer of the Year Award in 2006 for his innovative practices. This tour is being co-sponsored by the Illinois Stewardship Alliance (www.illinoisstewardshipalliance.org)

On July 30, Anne Patterson's Living Earth Farm in Farmington is the site for the tour (www.livingearthfarm.com). Patterson grew up on a farm in central Illinois and is a registered dietitian and food consultant. Living Earth Farm is a small vegetable, fruit, nut, herb, and flower farm located on fifteen acres in Fulton County and also on eighty acres in Peoria County. It grows winter greens as well as spring, summer and fall crops. Its primary marketing is weekly customized orders via email ordering. The tour is co-sponsored by the Peoria County Initiative for the Development of Entrepreneurs in Agriculture and the University of Illinois Extension, Peoria County.

Three Rivers Community Farm in Elsah is the location for a tour on August 17 (www.threeriverscommunityfarm.com). Three Rivers is a 12 acre farm near the small historic town of Elsah just a 10 minute drive north from Alton on River Road. Amy Cloud and her husband Segue Lara manage a 150 member Community Supported Agriculture program at the farm, boasting "exceptional vegetables, herbs, and flowers grown sustainably and chemical free." The farm also sells to local restaurants and at the Tower Grove Farmers' Market in St. Louis. The farm is off-grid – using solar power to generate all of the farm's electricity. As this is a beginning farm, tour visitors will be able to learn what's involved with a start-up versus a well-established farm. The tour is cosponsored by the University of Illinois Extension, Calhoun-Jersey Unit.

The fifth tour will be on September 14 at the University of Illinois Dixon Springs Agricultural Center (www.cropsci.uiuc.edu/research/rdc/dixonsprings). The Center has been the site for research projects since it was established in 1934. The concept of no-till planting was developed there in the later 1950's and agronomic research continues at the site. The Agricultural Center houses the largest beef cattle research herd east of the Mississippi River. Research with fruits and vegetables also occurs at this site including organic apple production. This tour is being co-sponsored by the Upper Midwest Organic Tree Fruit Growers Network (www.mosesorganic.org/treefruit/intro.htm).

And the final tour of the season will be on October 23 to Kuipers Family Farm in Maple Park http://www.kuipersfamilyfarm.com/The farm is owned by Wad and Kim Kuipers and is an example of creative agritourism efforts. On its over 220 acres, the farm includes apple orchards a pumpkin patch, and a wide variety of Christmas trees. The farm also has two gift shops that sell products such as fall and winter decorations, gourmet jellies and apple cider. This tour is being co-sponsored by Agriculture Tourism Partners of Illinois (www.agritourismillinois.com) and the University of Illinois Extension, Kane County.

A fee of $20 per person will be charged for each tour. This fee includes lunch. Registration at least one week in advanced is required. Visit www.extension.uiuc.edu/smallfarm/ to register and for more details about each of the tours including a map and agenda contact Deborah Cavanaugh-Grant (217-968-5512 or cvnghgrn@uiuc.edu).

The tours are sponsored by the University of Illinois Extension, the North Central Region Sustainable Agriculture Research and Education (SARE) Professional Development Program, the Agriculture Tourism Partners of Illinois (www.agritourismillinois.com), and the Agroecology/Sustainable Agriculture Program at the University of Illinois.

Risk Plan Examined

Some observers are now questioning the advisability of using Group Risk Income Plan (GRIP) crop insurance policies in 2007, said a University of Illinois Extension farm financial management specialist.

GRIP is a crop insurance product that uses county yields in calculating revenue. It differs from other revenue products that use farm yields in calculating revenue.

"GRIP premiums will be much higher in 2007," said Gary Schnitkey. "A GRIP product that cost between $20 and $25 in 2006 will cost in the $40 to $45 range in 2007.

"In 2006, GRIP made payments in only a few countries, causing some to question whether GRIP will make payments in 2007."

Schnitkey's study "Grip in 2007," http://www.farmdoc.uiuc.edu/manage/newsletters/ can be read online at University of Illinois Extension's farmdoc website. It examines the projected costs and performance of GRIP for Illinois farmers in 2007.

"In terms of expected performance, GRIP in 2007 does not differ markedly from previous years," he concluded. "Choice of GRIP over other farm related products should be based on similar criteria as in previous years.

"When looking at risk position, farmers in more vulnerable positions should choose farm-level products over GRIP. On farms whose yields more closely track county yields, GRIP payments will be more highly correlated with farm-level experience, thereby enhancing the risk protection offered from GRIP."

Schnitkey's study includes maps that show relevant date for GRIP in Illinois counties plus calculations for GRIP at various coverage levels.

"The structure of GRIP has not changed between 2006 and 2007, "he noted. "In most Illinois counties, GRIP in 2007 will be expected to pay out more in indemnity payments than farmers pay in premiums. However, GRIP will provide less risk protection than farm-level products, as has been the case in previous years."

Weekly Outlook: USDA Reports

Two upcoming USDA reports will set the state for prices during the spring months, said a University of Illinois Extension marketing specialist.

"The USDA's monthly update on world crop supply and demand prospects released on March 9 contained few changes from the February report," said Darrel Good. "The quarterly Grain Stocks and Prospective Plantings reports will set the stage for prices during the spring months."

The USDA"s World Outlook Board made no changes in March in the forecasts of consumption and ending stocks of U.S. corn, soybeans, and wheat for the current marketing year. There was some expectations that the forecast of the domestic soybean crush would be increased slightly based on the pace of crush from September 2006 through January 2007.

"The forecast of the marketing year average farm price of soybeans was increased slightly," said Good. "The midpoint of the forecast rage is $6.30, compared to a forecast of $6.20 in February."

For wheat, the USDA made a small reduction in the estimated size of the crop in the European Union and a more substantial increase in the estimated size of the crop in India. Still, world stocks of wheat at the end of the current marketing year will be significantly smaller than stocks at the beginning of the year.

For corn, the USDA increased the estimated size of the Brazilian crop by about 80 million bushels. That crop is now forecast at almost 1.9 billion bushes, 15 percent larger than last year's crop and 37 percent larger than the harvest in 2005.

Brazilian exports are forecast at 256 million bushels, 90 million more than exported last year. The estimated size of the current Argentine corn crop was increased by 20 million bushels. At 846 million bushels, the crop is expected to be 36 percent larger than the 2006 harvest. Argentine exports are forecast at 550 million bushels, 160 million more than exported last year.

"The sharp increase in South American corn exports along with prospects for a recovery in world wheat production and higher corn prices point to some softness in U.S. corn exports beginning this summer," said Good. "A slower pace of exports, along with a further decline in domestic feed use, will make additional quantities of corn available for ethanol production."

For soybeans, the USDA increased the estimated size of the current Brazilian harvest by 37 million bushels. At 2.094 billion bushels, the 2007 harvest is expected to be 3.6 percent larger than the record harvest of 2006. At 1.617 billion bushels, the Argentine crop is expected to be 8.6 percent larger than the 2006 crop. Production in all of South America is forecast at 3.985 billion bushels, 233 million larger than the 2006 harvest.

"A continuation of relatively high soybean prices into July and August would likely trigger a significant increase in South American soybean acreage for harvest in 2008," said Good.

The March 1 Grain Stocks report to be released on March 30 will provide information on the domestic rate of corn consumption during the second quarter (December 2006-February 2007) of the marketing year. Based on Census Bureau and USDA estimates, corn exports during the quarter were near 528 million bushels.

"If domestic use progressed at the rate forecast by the USDA, total domestic use during the quarter should have been near 2.41 billion bushels," said Good. "Under those circumstances, March 1 corn inventories should have been just under six billion bushels, about one billion less than stocks of a year earlier."

Anticipating the estimate of the March 1 inventory of soybeans is complicated by the lack of the Census Bureau estimate of the domestic crush for February and by the inconsistent seasonal pattern of "residual" use of soybeans, Good noted.

"Exports for the quarter were near 389 million bushels and we estimate the domestic crush at 454 million," he said. "if "residual' use during the first half of the year followed the average pattern of the past three years, use during the second quarter was near 59 million bushels. If so, stocks on March 1 should have been near 1.795 billion bushels."

The March 30 Prospective Plantings report will likely overshadow all other price factors into the planting season, Good said.

"Plans for a large decline in soybean acreage and a larger increase in corn acreage are expected to be revealed in the report, he said. "If planned acreage of either crop is judged to be too small or too large, the market will have three to four weeks to try to alter productions plans. Last year, for example, the March report revealed intentions to increase soybean acreage by 4.863 million acres and to reduce corn plantings by 3.76 million acres.

"The market judged that to be too large a shift so that prices adjusted. However, the price adjustment was not large enough and did not persist long enough. Soybean planting increased by 3.49 million acres and corn plantings declined by 3.452 million acres in 2006. If a significant change from intentions is judged to be needed this year, price changes will have to be more decisive."

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