bam-11-14-2013

Fall 2013

AG MagNorthCentral Illinois

Good asGold

As commodity prices continue to rise, so, too,

does the value of farmland in NorthCentral Illinois

A Publication of Shaw Media

Got cash? It’s been another good harvest and

crop prices continue to be high. What does

that mean for you?Your outlook: Local

farmers look at the 2013 harvest and beyond.‘Blend Wall’: Ethanol

production in the U.S. has leveled off, and no

growth is expected.

2 Fall 2013

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012013-00484AC

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Articles and advertisements are the property of Sauk Valley Media. No portion of the NorthCentral Illinois Ag Mag may be reproduced without the written consent of the publisher. Ad content is not the responsibility of Sauk Valley Media. The information in this magazine is believed to be accurate; however, Sauk Valley Media cannot and does not guarantee its accuracy. Sauk Valley Media cannot and will not be held liable for the quality or performance of goods and services provided by advertisers listed in any portion of this magazine.

PublisherSam Fisher

Advertising Sales Development Director

Pam Pratt

EditorTerri Simon

Magazine EditorsLarry Lough, Jeff Rogers

Reporters & PhotographersDerek Barichello, Donna Barker,

Sarah Brown, Kath Clark, Goldie Currie, Lyle Ganther,

David Giuliani, Barb Kromphardt, Philip Marruffo, Matt Mencarini, Alex T. Paschal, Dixie Schroeder,

and Terri Simon.

Published bySauk Valley Media3200 E. LincolnwaySterling, IL 61081

815-875-4461

AG NorthCentral IllinoisMag

10COVER STORY

Land values rising Between 2006 and 2013, Illinois farmland

more than doubled in price.

In the majorityThe percentage of cash-rented

ground in Northern Illinois is slightly higher than the

norm, a local agribusiness banker says. 12

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6 Fall 2013

IndexChanges in the industryLike most cattle producers, Jeff Wisnefski of Stark County has had to adjust to changing times.

100 years in the business

McNabb Grain Co. has been growing, and serving

its community, since March 22, 1913.

Learning life lessons in FFAMidland High School senior Anna Nofsinger has never lived on a farm, but now knows a lot about agriculture.

Fueling the local economyThe Patriot Renewable Fuels

ethanol plant has had a regional economic impact of $1.1 billion in its five years.

Hitting a ‘blend wall’?Production of ethanol in the U.S. has leveled off in recent years and actually dropped in 2012.

Get locked in, experts sayWith a big harvest underway, prices on corn and soybeans are expected to drop.

32

2616

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AG Mag 7

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Index

Extension still ‘thinks anew’Jill Guynn, county director

for the University of Illinois Extension, writes about the 100-year-old organization.

An unwelcome guest arrivesThe emerald ash borer has been found in much of Northern Illinois, leading to the quarantine of several counties.

Illinois flavor for CropLife

The panel at the organization’s annual

meeting this year featured two prominent Illinoisans.

Focusing on safetyOSHA and a grain-handling group are working to promote bin safety.

Where the buffalo roamGale and Sandra Casteel of rural Cambridge have about 25 buffalo on their property as a “hobby.”

Farmers share their outlooksNorthCentral Illinois farmers share their expectations for

the 2013 harvest and for the year ahead.34

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47

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AG Mag 9

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10 Fall 2013

BY MATT MENCARINIFor NorthCentral Illinois Ag Mag

M ark Fassler and his brother Tim were finishing up their soy-bean harvest

in early October. The broth-ers, who took over farming for their father, work 4,100 acres of soybeans and commercial corn between Sterling and Dixon. This year, the Fasslers had a little more land to farm.

In December, they bought 145 acres of farmland “right next”

to the land they already worked, a third of which belongs to the brothers, Fassler said. They rent the rest.

“We’re farmers, and that’s what we’re in the business of doing,” he said. “We’ve had a few good years growing corn and beans, and we’re lucky enough to have enough equi-ty to purchase some land.”

Q�Q�Q

In August, they bought 117 more acres, also near their current land.

“I wish we would’ve bought these up 10 years ago,” Fassler said. “But [we] didn’t have the equity needed.”

Between 2006 and 2013, Illinois farm-land more than doubled in price, from an average price of $3,640 an acre to an average of $7,900, according to Reuters, which cited the U.S. Department of Agriculture. Moving into this year, land values in western Illinois and eastern Iowa increased by double digits again, but did so at a slightly lesser amount than in previous years, signaling a tapering off.

In Iowa, the gap between high-quality land and medium- and low-quality land is growing, said Kyle Hansen, a real estate agent and auctioneer work-ing out of the Nevada, Iowa, office of Hertz Real Estate Services.

Land values now closely tied to commodity prices

CONTINUED ON 11�

STILL A GOOD INVESTMENT

NorthCentral Illinois Ag Mag file photo by Phillip Marruffo

AG Mag 11

Hansen also is the chairman of the Iowa Realtors Land Institute. In its October farmland values survey, it indi-cated that high-quality land increased this year to $11,661 an acre, up $224 from 6 months earlier. During the same 6 months, medium-quality land increased by $86, to $8,780, and low-quality land increased by $2 an acre, to $5,808.

In its 2013 Illinois Land Values and Lease Trends survey, the Illinois Soci-ety of Professional Farm Managers and Rural Appraisers found that while sup-ply is down from a year ago, value is “up modestly.”

In Illinois, excellent-quality farmland averaged $13,200 on July 1, up 3 per-cent, Dale Aupperle, of Heartland Ag Group and the ISPFMRA chairman, reported in a summary of the survey. Additionally, good-quality farmland increased by 2.5 percent to an aver-age of $11,200, and fair-quality land increased by 1.9 percent, up to $9,000.

“It’s just like the other stocks,” Han-

sen said. “It’s a cycle. It will go up and come down based on the commodity prices and other factors [like world demand for fuel and food]. ... But it still continues to be a cycle. It will come up and go down. Now it’s leveling off and taking a breath to see where we’re going from here.”

Hansen said land values in Iowa are now more connected to commodity prices than they have been in the past.

Mike Morris is the chief appraiser with 1st Farm Credit and has been based in the Bloomington-Normal office since 2007. He has been appraising since 1999, he said, and handles appraisals in northern Illinois.

“I think if we don’t see much change in crop prices, I would call it a stable to slightly softer market,” he said. “If we see some real increase or decrease, that could affect the market. Right now, no one is really anticipating that.

“My gut tells me that we’ll still see some strong sales, but we’re not going to see anything that’s higher than [land value] in December, unless we see sig-nificant increases in commodity prices.”

On Oct. 11, December corn was $4.3325 a bushel, down 5 cents from the day before, and November soy-beans were $12.6675 a bushel, which was 21.25 cents lower than the market’s Oct. 10 close.

Despite the falling commodity prices, in a market that’s been described by some experts as volatile, land values have been increasing by double digits for several consecutive years.

Bruce Sherrick, an agriculture profes-sor at the University of Illinois, said that rise follows good recent incomes for farmers and continued use of corn for, among other things, renewable energy that keeps demand for land high, but supply low.

“Because so little farmland turns over, it’s really, really hard to get a clear picture of what’s going on,” Sherrick said. “Income in northern Illinois is higher than southern Illinois because you grow more. Because of the slow turnover, it’s hard to get a clear picture.”

Alex T. Paschal/For North Central Illinois Ag MagTim Fassler inspects and greases a combine as he prepares to harvest corn on the farm he and his brother Mark own in north-western Illinois. The Fasslers have added to their 4,100-acre farm between Sterling and Dixon by buying 145 acres of farmland in December and an additional 117 acres in August. “I wish we would’ve bought these up 10 years ago,” Mark Fassler said. “But [we] didn’t have the equity needed.”

��CONTINUED FROM 10

CONTINUED ON 15�

12 Fall 2013

Terri Simon/For NorthCentral Illinois Ag MagDerek Fetzer, vice president of agribusiness banking for Heartland Bank and Trust Co. with branches in Bureau, LaSalle and Marshall counties, believes about 10 percent more land is leased in Northern Illinois than in the rest of the state.

BY TERRI SIMONFor NorthCentral Illinois Ag Mag

Derek Fetzer, vice president of Agri-business Banking at Heartland Bank and Trust Co., believes the amount of cash-rented ground in Northern Illinois is slightly higher than the norm.

“In 2012, according to FBFM [Farm Bureau Farm Management] data, in

the state of Illinois, 58 percent of farms were cash rented; 23 percent were share rented; and 19 percent were owned,” Fetzer said. “I would say in Northern Illinois, cash-rented ground is 5 percent to 10 percent higher than the state average.”

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In regard to Bureau, LaSalle, Putnam, Henry, Marshall, Stark and Rock Island counties, Fetzer doesn’t see a big differ-ence in the going rate for cash rent. He said cash rent in this part of the state typically goes for around $250 an acre; any variables would be dependent on soil quality.

Fetzer said he’s seen vari-able cash-rent lease agree-ments increase throughout the past few years.

“With commodity prices also increasing during this same time, inputs followed along. Included in this was cash rents,” Fetzer said. “The VCRL [variable cash rent lease] allows the farm-er to have a level of pro-tection if yields or prices decreased for that growing year. If it was a good year, landowners would get a share of the above-normal returns.”

With that in mind, Fetzer said it’s important for land-owners and tenants to keep an open line of communica-tion, adding that both par-ties “need to be on the same page and know what the break-even costs are,” which will ultimately determine returns for the landowner and the tenant.

Not sure if you want to lease your property? Fetzer said landowners are becoming further removed from the farm, adding it’s not uncommon for the landowner to live out of state. It’s also becoming

more prob-able the landowners never grew up on a farm or in a rural setting.

“These people don’t want the hassle in dealing with share leases,” Fetzer said. “The chal-lenge for the tenants in this situation is keeping a good line of communica-tion with the landowner and updating them on current trends. Another reason a landowner would prefer cash rent is the guaranteed income every year.”

While there are several types of cash rent leases, each with its own options, Fetzer said landowners should “find a product in which they feel comfortable, as well as one that protects their tenant, keeping them motivated to not cut corners and farm the land as if they owned it.”

A recent University of Illinois survey found 2014 cash-rent rates are likely to be lower than they were in 2013, and Fetzer agrees. He said the cause would be fall-ing grain prices.

“It will correlate with commodity prices,” he said.

“If corn futures stay at cur-rent levels or continue to decrease, cash rents have to come down.”


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Alex T. Paschal/For NorthCentral Illinois Ag MagMark Fassler of Sterling works on preparing his combine for the harvest season. Mark said he and his brother, Tim, decid-ed to buy more farmland in the past year because “we’ve had a few good years growing corn and beans, and we’re lucky enough to have enough equity to purchase some land.”

Todd Slock works for 1st Farm Credit as a real estate appraiser out of the Rock Falls office. He’s been an appraiser for 6 years, and previously spent time work-ing near Ottawa, in LaSalle County.

Land sales usually pick up after harvest, when farmers have a better idea of how much they made on the year’s crops, Slock said. By early October, there hadn’t been many listings, which could be the result of commodity pric-es falling and interest rates “being up slightly.”

Hansen said that until the middle of September, the amount of availbale farm land in Iowa was bellow the average, but because of a softening market, landown-ers are seeing reason to sell now rather than later, espe-cially with medium- and low-quality land.

For the most part, high quality land is being held because it has shown greater appreciation, he said.

Both pieces of land the Fassler brothers bought were from heirs who don’t plan to farm and don’t want to man-age the land. For them, like the pension funds or invest-ment groups, the land is a financial investment and not a farming asset.

“People look at what their alternative is,” Morris said.

“And they look at a stock market that’s been volatile and CDs that aren’t going to pay as well. ... I think in a lot of cases, people think they can make something off the land, so they hold on to it.”

In Iowa, which has buying rules different from Illinois that make it more likely that farmers will buy land, some investment groups still are purchasing land, but more is going to farmers.

“It just shows that people are interested in it,” Hansen said. “Even without a background in farming, they still see long-term income opportuni-ties there. But again, they’re competing with farmers, and farmers are winning.”

Between 75 and 80 percent of land purchased in Iowa recent-ly was done so by a farmer within 10 miles, he said.

According to the ISPFMRA survey, the “vast majority” of farms in northwest Illinois were purchased by local farmers, and several coun-ties saw sales of more than $12,000 an acre for excellent productivity tracts, and three counties had sales match or exceed $14,000 an acre.

“I don’t think there’s a big surprising story in any of this,” Sherrick said from his office at the University of Illinois. “It’s kind of the new normal – high-er priced input and higher priced output. ... It adds to the amount of capital [needed] to get into the industry.”


16 Fall 2013

BY GOLDIE CURRIEFor NorthCentral Illinois Ag Mag

Cattle producers have come face-to-face with tough times in past years. Farmers have dealt with factors such as higher commodity prices, weather extremes, and increasing input costs.

For cattle producers like Jeff Wisnefski of Stark County, an ongoing challenge is figuring out the cheapest ways to keep cattle fed.

Tough times, changing times

Stark County farmer adjusts with the changes

Goldie Currie/For NorthCentral Illinois Ag Mag

In the photo Stark County cattle producer Jeff Wisnefski

manages Cardinal Cattle Co. and specializes in Angus beef. He’s found a way to cut expenses by switching to products like corn gluten and feeding more processed hay, as opposed to the high-priced corn and oats.

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“Part of that comes with starting with a really good product, as far as on the cow end,” he said. “Some cattle need a lot of feed, and some don’t need as much.”

Wisnefski, who manages Cardinal Cat-tle Co. and specializes in Angus beef, has found a way to cut expenses by switch-ing to products like corn gluten and feeding more processed hay, as opposed to the high-priced corn and oats.

“Now that you have access to corn gluten, you can feed solids with some gluten with maybe some haylage or processed hay, which makes it a cheap-er ration, especially at the price of corn now,” he said.

Recent drought also has taken a huge toll on the cattle market by creating large sell-offs for some producers.

“Drought conditions always affect everybody,” Wisnefski said. “Some a little less, some a little more.”

Wisnefski explained he is fortunate with his extra acreage, where he’s been known to move cattle when times get scarce.

While 2012 was a tough drought year for the area, Wisnefski described this year’s weather conditions as “wet, wet, wet and then dry, dry, dry.”

The wet season was a struggle in Stark County as producers were forced to keep up with cattle health issues. At Wisnefski’s farm, they kept a close eye

on rotting hoofs and pinkeye condi-tions with the large number of flies. Issues seemed to calm down once sum-mer came and air moisture dried up.

Looking ahead into next year, Wis-nefski said he’s optimistic. Lower corn prices will keep the cattle market strong, he said.

“I thought it might go down through

the summer, but corn kind of got high last spring and summer, but it held strong,” he said. “It seems to be a good indication that it’s going to stay strong.”

Wisnefski hopes for steady rain condi-tions in the next year and anticipates the market will have a high demand for bred heifers, and keep a steady demand for bulls.


Alex T. Paschal/For NorthCentral Illinois Ag Mag Randy Faber raises cattle and corn on his farm in Sublette, in Lee County. Chang-ing weather can be a challenge for cattle farmers, Faber said. March calving sea-son, for example, “was a real challenge this year,” he said, “because we had a cold, wet spring.”

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18 Fall 2013

BY DIXIE SCHROEDER AND BARB KROMPHARDT

For NorthCentral Illinois Ag Mag

More than 100 years ago, spe-cifically March

22, 1913, McNabb Grain Co. was started, and nine local men were elected to serve as the first board of directors of the company.

Those local men all were farmers who knew the benefit of having a local grain elevator that would not only store their products, but also be available so they could borrow money against those products to support their other farming expenses.

Q�Q�QIn the beginning, McNabb

Grain Co. moved 273,000 bushels of grain. In 2012, the company moved 4.7 million bushels of grain and also gave patronage back to the customers of more than half a million dollars, accord-ing to board member Gregg Carr.

McNabb Grain Co. has grown throughout the years to meet customers’ wants and needs.

McNabb Grain has served its

community for 100 years

Dixie Schroeder/For NorthCentral Illinois Ag MagThe newest addition to McNabb Grain Co. is being built. Future expansion plans include another leg, another pit, and another holding facility, board member Gregg Carr said.

TAKING CARE OF AGRI-BUSINESS

CONTINUED ON 19�

AG Mag 19

The increasing corn yields have demanded this evolution with more acres planted than ever before. Carr said good management of the elevator has been critical.

Bart Ericson, current manager of the elevator, said the elevator’s staff has learned many efficiencies throughout the years. When the company began, farmers waited sometimes close to a day to bring in their harvested grain and leave it with the elevator. As farmers have become efficient and faster at what they do, the elevator has changed to meet the challenge of keeping up with them. For example, farmers used to come to the elevator with about 200 bushels of corn in a wagon; nowadays they bring in 950 bushels or more in a semi.

Time is important to a farmer, so McNabb Grain always wants to work at its peak efficiency. To a farmer, time is money, and loyalties can be tested if a grain company takes too long to “take care of business.” Carr said a farmer doesn’t want to see a line, which trans-lates to waiting and could ultimately cause that farmer to go to another elevator.

In the past 100 years, the elevator has changed in many ways. It used to han-dle coal, lumber, feed and other items. But today McNabb Grain is strictly a

grain elevator. Those decisions haven’t been made lightly. Board President Ben Day said that in the early 1970s, some decisions were pretty unpopular, like closing the company’s feed mill.

Another change the elevator has dealt

with is high commodity prices, which causes everyone’s financial needs to increase, along with the company’s needs as well.

Dixie Schroeder/For NorthCentral Illinois Ag Mag McNabb Grain Co. staff Virginia Terando (left) and Bart Ericson review grain prices at the facility in McNabb. The company, now 100 years old, moved 4.7 million bushels of grain in 2012.


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Ericson said while prices have gone up, so have inputs, cash rents and equipment, creating a need for a strong working capital and balance sheet for the company.

When Day joined the board, he said, the company would talk and work in

terms of hundreds of thousands of dollars. Today, they talk about mil-lions.

McNabb Grain Co. is looking to expand. Carr said goals for the future include another leg, another pit, and another holding facility, so more farmers can be accommodated at one time.

What the McNabb Grain Co. complex looks like today (left), and the original elevator (above) .


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22 Fall 2013

It’s not your grandparents’ FFA anymore

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AG Mag 23

BY DONNA BARKERFor NorthCentral Illinois Ag Mag

Anna Nofsinger of Lacon represents the changing face of the National FFA Organization.

Formerly known as the Future Farm-ers of America, the farm-education program for high-schoolers received a name change in 1988, to the National FFA Organization, to more fully repre-sent its widening scope – reaching into the lives of non-farm kids as well as farm kids.

Nofsinger, a senior at Midland High School in rural Varna, has never lived on a farm. Her parents didn’t grow up on a farm. Before joining FFA, she hadn’t thought a lot about agriculture and admittedly didn’t know a lot about it. But FFA has changed all that and more for her, Nofsinger said.

Nofsinger said she joined FFA as a freshman because her best friend was joining and because the FFA members had done such a great job in presenting

the organization in a positive and fun way.

Four years later, with the past two years as chapter president, Nofsinger said FFA has opened her world to all kinds of new things, including the multi-facets of agriculture.

“Everyone needs a working knowledge of agriculture and needs to appreci-

ate the importance of agriculture,” Nofsinger said. “Without agriculture, people wouldn’t have their food to eat or clothes to wear. Agriculture is what keeps the country going economically.”

Nofsinger’s favorite part of ag studies has been lessons on horticulture. Botany, she explained, is more the study of plants, but horticulture is learning how to propagate and care for those plants. Mid-land High has its own greenhouse where students raise vegetables and flowers to sell them to the public each year, not only as a learning experience but also as a fun-draiser for the FFA program.

Nofsinger said she has taken what she’s learned in the classroom into her own home and yard. She now grows tomatoes, broccoli, onions and peppers in her own vegetable garden. She plants flowers and even has a “mug garden,” where she raises herbs in a collection of coffee mugs in her bedroom.

Midland High FFA president has new appreciation for agriculture

In the photo Midland High School senior Anna

Nofsinger said her favorite part of agriculture studies has been lessons on horticulture. She has taken what she’s learned in the classroom into her own home and yard. She now grows tomatoes, broccoli, onions and pep-pers in her own vegetable garden. She plants flowers and even has a “mug garden,” where she raises herbs in a collection of coffee mugs in her bed-room.

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“I wouldn’t have done any of that before I learned about horticulture,” Nofsinger said. “I’d always admired other people’s plants, but I was pretty confident I would kill everything if I tried it myself. But now, I love growing things. It’s been really neat.”

In time, Nofsinger would even like to open her own floral shop, thanks again to what she has learned through her Midland ag classes and FFA.

Nofsinger said an important part of FFA has been Career Development Events (CDE), which are contests and presentations centered on agriculture-related fields, such as livestock and grain farming, veterinary science, ag-related business, communications, education, and, of course, horticulture. Regional-winning CDE teams make their presentations at state and even national competitions and conven-tions.

In addition to acquiring a knowledge and understanding of ag-related top-ics and fields, Nofsinger said she has learned other things through FFA that she will take with her when she leaves high school and enters her next stage of life, even if it’s not an ag-related career.

For example, through FFA she has conquered her fear of public speaking.

When she was a freshman, she would have been afraid to give a speech in front of her class, but now, through being on a CDE Ag Communications team, she has became more comfort-able and confident with public speak-ing. Little by little, practice by practice, speech by speech, she is no longer afraid when it’s time to speak before others, she said.

“This has been one of the biggest things for me about being in FFA,” Nofsinger said. “I really enjoy having that skill of public speaking. It’s a skill I don’t think I would have developed without FFA.”

The Midland senior said she’s also had the opportunity to learn and develop leadership through FFA, especially dur-ing her two years as chapter president. Under the guidance of FFA sponsor and teacher Darin Blunier, the students take charge of FFA, including its monthly meetings and its events and programs, Nofsinger said.

As president, she has learned that a

good leader must have an eye open for everyone, not just her personal friends. She also has learned the importance of delegating responsibilities and has realized that it’s OK for other people to do things a bit differently than she would. She’s learned that a good leader is someone who helps others develop their own leadership skills.

“I think there are a lot of people who tend to follow the natural leaders and fail to realize their own potential,” Nofsinger said. “I’ve learned to lead, but I’ve also learned to encourage oth-ers to lead as well.”

Nofsinger said she will take a lot with her from her FFA days, regardless of what career path she follows.

“I’ve learned a lot about agriculture through FFA and how we all depend upon agriculture in ways we may not always realize, but I’ve also learned a lot about myself,” Nofsinger said. “As one who comes from a non-agriculture background, I can say first-hand FFA is a great program for everyone.”


’’‘‘ I think there are a lot of people who tend to follow the natural leaders and fail to realize their own potential. I’ve learned to lead, but I’ve also learned to encourage others

to lead as well.Anna Nofsinger, Midland High School senior

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AG Mag 25

Meet Anna Nofsinger Age: 17 Hometown: LaconFamily: Tom and Amy Nofsinger, parents; Katie, sisterPet: Hallie, yellow lab mixSchool: Midland High School in Marshall CountyAg/FFA teacher: Darren BlunierAg classes taken at school: Intro to Ag, Intro to Horticulture, Advanced

Horticulture, Ag Business Management, Ag Independent StudyFFA activities: Soils Judging, Horse Judging, Ag Issues, Ag Communica-

tions, Horticulture CDE (Career Development Event), Ag Sales, FFA Chapter Reporter 2011, FFA Chapter President 2012 and 2013, National Ag Committee 2011, National Ag Issues 2013

Other school activities: National Honor Society, band, chorus, Science ClubHobbies: Looking at stars, hiking, swimming, camping, singing, taking picturesFavorite style of music: Folk, alternativeFavorite television shows: “Psych,” “Parks and Recreation,” “Monk,” “Sher-

lock,” “Downton Abbey.”If you were stranded on a deserted island and could have just one meal

for the rest of your life, what would it be: Tomato soup and grilled cheese!If you were stranded on a deserted island and could take just one thing

with you, what would it be: A houseboat with a refrigerator of never-ending foodYou had a million dollars, how would you spend it? I would travel the world

and support the International Justice Mission to help get people out of human traf-ficking and pay for college and buy a motorcycle and then travel the world again.

People would be surprised to know that you: I was born in Wisconsin, lived seven years in Kentucky, and then moved to Illinois.

What are your plans after high school: I plan to attend the Word of Life Bible Institute in Argentina to study Spanish, and then further my education, but I’m not sure how. I am interested in photography or EMT classes and would also like to one day own my own flower shop. I have many interests, but I will first make sure that I am fluent in Spanish, so that I can take that and what I’ve learned in FFA in whatever job I have!

Donna Barker/For NorthCentral Illinois Ag Mag When Anna Nofsinger of Lacon joined FFA as a freshman at Midland High School in rural Varna, she hadn’t thought about agriculture and didn’t know a lot about it. Now, as a senior and having spent the past two years as the group’s president, Nofsinger said FFA has opened her world to all kinds of new things.

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26 Fall 2013 AG Mag 27

BY DAVID GIULIANIFor NorthCentral Illinois Ag Mag

W hen it comes to ethanol mandates, an Iowa pro-fessor says,

there are winners and losers.Corn farmers in Iowa and

Illinois are the big winners. So is the environment. But live-stock producers, who have to pay more for feed because of higher demand for corn – not so much.

“Any state that exports corn is going to benefit from an increase in demand for the

product,” said Dermot Hayes, an agribusiness professor at Iowa State University.” If we didn’t have a mandate, the price for a bush-el of corn would be a dollar lower. Demand for corn would be less.”

In early October, the price of a bushel of corn was $4.43.

Q�Q�Q

The United States is the world’s top ethanol producer, with Brazil coming in second. Since 1980, U.S. ethanol production has skyrocketed, increasing from 175 million gallons a year to 13.3 billion gallons – a 76-fold jump.

The number of U.S. ethanol plants has grown from 50 in 1999 in 211 this year, with more than 40 in Iowa, which produces more ethanol than any other state.

Production of ethanol has leveled off in recent years after seeing huge spikes from 2005 to 2009. It fell slightly in 2012.

In August, the Environmental Protec-tion Agency proposed the lowering of its ethanol fuel mandate for 2014 because the demand for gasoline is lower than expected.

The decision comes as proposals in Congress are circulating to change the mandate, which was first set in 2007.

“There is absolutely no growth expect-ed for the ethanol industry,” said Rich Nelson, a chief strategist with Allendale. “We are hitting the blend wall.”

Industry might be hitting a ‘blend wall’

Phillip Marruffo/For NorthCentral Illinois Ag MagDon Temple empties the corn from his combine into a chaser bin on his land in western Whiteside County. For the past 2 years, Temple’s corn crop has gone to an ADM ethanol plant in Clinton, Iowa. He farms about 500 acres of corn and 150 acres of soybeans. “Before, we had surplus corn. When you have more corn than what is being used, you don’t get paid really well. The ethanol market has been a very good thing for corn growers.”

TOPPING OFF ETHANOL?

Anti-ethanol groups say that ethanol con-sumes about 40 per-cent of the nation’s crop, but ethanol supporters counter that it’s nearer 28 per-cent.

The U.S. Depart-ment of Agriculture uses the 40 percent number, noting that about that much corn ends up at ethanol plants. But a third of the corn at the plants ends up as byproduct, which is used as feed for livestock, supporters say.

Allendale Inc., a McHenry-based research company and broker, surveys corn farmers monthly about their expectations.

Last year, U.S. corn farmers pro-duced 10.8 billion bushels, a number that is expected to rise to 13.6 bil-lion bushels – a 25 percent increase, according to Allendale’s September numbers.

A total of 97.4 million acres are devoted to corn this year – the highest number since 1936, the U.S. Depart-ment of Agriculture reports.

The increase in demand for ethanol has led to the ris-ing number of acres under corn produc-tion, supporters say.

“We grow a lot more corn in the world today than we used to because of the demand for renew-able energy,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

“Ethanol is cheaper, ethanol is clean-er, and it’s high-octane,” he said. “The majority of Iowa corn gets processed by ethanol plants. A third of all of that goes back to feed markets in the form of distillers grains.”

As for 2014, he said: “I’m optimistic about next year. The economics will drive 2014, but it depends on what the White House and EPA will do.”

To meet the federal renewable fuel standard, gasoline companies have blended ethanol into gasoline at 10 percent, known as E10. The ethanol industry wants greater availability of E15 and E85.

E85, which requires 85 percent etha-nol, can be used in “flexible fuel” cars, while E15 is for cars built in 2001 or later.

Dermot Hayes Agribusiness

professor at Iowa State University

Rich Nelson Chief strategist

with Allendale Inc.

Monte Shaw Executive

director of the Iowa Renewable Fuels Association

CONTINUED ON 28�

28 Fall 2013

In Creston, Iowa, the Farmers Cooperative Co. service station started selling E85 ethanol in August – among more than 2,000 across the country that do.

On an early October day, regular unleaded (E10) gasoline sold for $3.29. E15 went for $3.24, E30 for $3.06, and E85 for $2.59.

The E85 has been good for business, with the Creston station seeing more customers, said Darin Schlapia, Cres-ton branch manager for the Farmers Cooperative.

That’s a story heard from many stations that are selling E85, Shaw said.

“The consumers are picking a good chunk of higher ethanol blends,” he said. “This is a very important fight, giving consumers choice at the pump.”

Hayes, the agribusiness professor, said that while the prices are cheaper for higher ethanol blends, they are not as efficient.

“It’s 75 percent as good,” he said. “The $2.59 [price of E85 at the Creston sta-tion] would amount to $3.45.

“The density of the energy in E85 is less,” he said. “You’re miles per gallon are less.”

��CONTINUED FROM 27 U.S. ethanol production Production Year (in millions of gallons)2000 ........................................ 1,6222001 ........................................ 1,7652002 ........................................ 2,1402003 ........................................ 2,8102004 ........................................ 3,4042005 ........................................ 3,9042006 ........................................ 4,8842007 ........................................ 6,5212008 ........................................ 9,3092009 ......................................10,9382010 ......................................13,2982011 ...................................... 13,9482012 ......................................13,300

Source: U.S. Energy Information Administration

Number of U.S. ethanol plants Year ........................................Plants2000 .............................................. 542001 ............................................. 562002 ............................................. 612003 ............................................. 682004 ............................................. 722005 ............................................. 812006 ............................................. 952007 ........................................... 1102008 ........................................... 1392009 ........................................... 1702010 ........................................... 1892011 ........................................... 2042012 ........................................... 2092013 ........................................... 211

Source: Renewable Fuels Association

Sarah Brown/For NorthCentral Illinois Ag Mag

The Farmers Coopera-tive Co. service station in Creston, Iowa, began selling E85 ethanol in August. Here, cars line up for a special sale of the E85 for 85 cents per gallon at the station. On an early October day, E85 was selling for $2.59 a gallon, compared to $3.29 for regular unlead-ed (E10) gasoline.

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AG Mag 29

BY LYLE GANTHERFor NorthCentral Illinois Ag Mag

A $175 million initial invest-ment in the Patriot Renew-able Fuels ethanol plant near Annawan in 2008 has blos-somed into a regional eco-nomic impact of $1.1 billion some five years later.

“We are owned by 200 local investors,” said Judd Hult-ing, commodities manager at Patriot Renewable Fuels LLC. “Our goal is to return a ben-efit to those stakeholders in Bureau and Henry counties.”

The plant, alongside Inter-state 80 in Henry County, each year processes millions of bushels of corn from 220,000 truckloads. From that grain, the plant has produced 120 million gallons of ethanol each year; 550 million gallons have been shipped in 18,000 railcar loads in the past five years.

Facility produces 120M gallons of ethanol each year

Submitted photo Corn is dumped at the Patriot Renewable Fuels ethanol plant near Annawan. Since the plant was built in 2008, more than $1.1 billion of grain has been bought from farmers and county elevators.

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Patriot also produces 320,000 tons each year of dried distillers grain (DDGS), which is exported for poultry and livestock feed, con-tributing to a $300 million reduction to the U.S. trade deficit. One year’s worth of DDGS production helps feed five million pigs in Asian countries.

“This is a multimillion-dollar export to a growing population overseas that we didn’t know about five years ago,” Hulting added.

More than $1.1 billion of grain has been bought from farmers and county elevators since 2008, and the plant’s 50-plus employees’ compensation and benefits have exceeded $18 million since 2008.

“We are also another outlet for corn in the area,” he said. “We are a new market for corn and renewable fuel in this area.”

Huling said the major-ity of the corn used at the Patriot Renewable Fuels LLC ethanol plant, as well as the employees, come from a geographic area from Princeton to Gen-eseo and from Kewanee to Prophetstown.

“We [use] a semitruck load of grain each 10 minutes, 24 hours a day, seven days a week,” he said.

In 2010, Patriot was the first ethanol producer to implement a Zero Liquid Discharge program, mean-ing the company uses less water per gallon of ethanol produced than most other plants. All water is recycled,

and no water or other waste products are discharged into streams or groundwater.

Gene Griffith of Geneseo and Jeff VandeVoorde of Annawan were the co-founders of the ethanol plant.

Griffith, the president of Patriot Renewable Fuels LLC, worked for John Deere Construction Equipment Co. from 1967 to 2005, retiring in February 2005.

VandeVoorde, one of Patriot Renewable Fuels’ directors, is the co-owner and president of Vande-Voorde Sales Inc., a con-struction company that

provides millwright services and specializes in grain handling equipment sales

and service. He also oper-ates a custom farming busi-ness.


Lyle Ganther/For NorthCentral Illinois Ag MagPatriot lab employee Shannon Overton displays bags of DDGS, dried distillers grain, which is exported for poultry and livestock feed and ultimately contributed to a $300 million reduction to the U.S. trade deficit, industry officials say.

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Submitted photo A $175 million initial investment in the Patriot Renewable Fuels ethanol plant near Annawan in 2008 has blossomed into a regional economic impact of $1.1 billion some five years later. The plant, along Interstate 80, each year processes millions of bushels of corn from 220,000 truckloads. From that grain, the plant has produced 120 million gallons of ethanol each year.

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SET YOUR PRICE NOW Big harvest should bring prices down

BY DEREK BARICHELLOFor NorthCentral Illinois Ag Mag

The harvest of 2013 has been full of sur-prises.

Farmers planted late because of a wet spring and suffered through a flash drought in July and August, yet many yields are high – so high, in fact, this harvest might rank as one of the top three yields per acre.

Corn farmers are seeing monitors on their combines hitting 200 bushels regularly.

“They’re pretty proud of their numbers,” said Tim Wells, an agricultural lender at

First Midwest Bank in Moline. “I had a farmer send me a text of a picture of a monitor at 300, so there’s quite a bit of volume out there coming in. I haven’t talked to a farmer yet who isn’t pleased.”

What does that mean for a Midwestern farmer sitting with a good yield?

A large amount of corn acreage was planted this season, setting up for a glut of corn on the market, according to the U.S. Department of Agriculture.

CONTINUED ON 33�

AG Mag 33

Many soybean harvests also turned in a better-than-expected yields.

Unfortunately, harvest totals were being reported late because of the govern-ment shutdown.

As happens with big yields, prices have dropped since reaching a high of $8.49 a bushel last summer and sat at $4.37 as of mid-October – a new low for the year.

“Prices may not be where farmers want them to be, but there is a saying in farming, ‘Give me the bushels and I’ll be fine,’” said Ryan Walsh, a commodities broker for AgPerspective in Dixon.

With 200 bushels of corn, and $4 prices, the farmer generally is making money.

Be a seller on the futures market, lock the price in (as it’s expected to continue to slide), and be a storer, Walsh says.

“Sell corn for delivery next July, store until then, and truck it in,” Walsh said.

Because of the October harvest, corn has been late getting to the eleva-

tors, keeping the basis level strong, encouraging storage.

Farmers who are putting it in their bins and not selling it face a market risk if they don’t lock it in. Also, once crop insurance floors are set, which are expected to drop off, the farmer won’t have that safety net, either.

The big forward sellers, who set their prices back in Decem-ber, are cashing in nicely.

“They are really happy right now,” Walsh said.

Select farmers didn’t sell their 2011 crops, because they didn’t want the income and didn’t want to pay taxes on it.

“Take the income; pay the

taxes,” Wells said.While there’s something

to putting corn in the bin, farmers need to take care of their liabilities.

“Sell enough grain to make sure obligations are taken care of, then from there the market is the market, and you take whatever risks come with that,” Wells said. “That’s up to each individual farm to make their call. Just make sure the bank is taken care of.”

For farmers banking cash, now is a good time to leverage investments and plan for the future. That could mean set-ting up a retirement plan or acquiring land or equipment.

“So long as it’s done with a plan,” Wells advised. “Every farm should have a 5- or 10-year plan, and I’ll say that if they don’t have a plan, they’re risking way too much.”

With that said, higher yields don’t always translate to high-er profits. Prices are expected to decline as the supply grows.

“We don’t anticipate an increase in farmers’ incomes,” said Kurt Downs, an agricultural lender for Sauk Valley Bank.


Philip Marruffo/For NorthCentral Illinois Ag Mag A combine works a corn field off Crosby Road outside Mor-rison. This year’s harvest might rank as one of the top three yields per acre. In the Midwest, a large amount of corn acre-age was planted this season, setting up for a glut of corn on the market, according to the U.S. Department of Agriculture.

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WHAT’S YOUR OUTLOOK?

A Q&A with local farmers

Keith and Barb BolinTown/county where you farm: Rural

Manlius, Bureau CountyWhat are your harvest expectations

this fall: When we plant in the spring, we are always optimistic for a good year for our farm and family.

How do those expectations compare to the norm: There will be good fields and some not-so-good fields; that is farming.

Were there any surprises or anything different about the 2013 growing sea-son: Every year has challenges. That is what makes life interesting. We also had a new granddaughter this year. That meant the 2013 year is very special for our family. Terri Simon/For North Central Illinois Ag Mag

Keith and Barb Bolin and family.CONTINUED ON 36�

AG Mag 35

Revenue Protection Beyond Crop Insurance With harvest well underway throughout the country many producers are asking the question, “Should I sell my grain now or store it?” At the time of this writing, December corn futures are trading roughly $2 per bushel lower than during the same period last year, and November soybean futures are about 50 cents lower. Nobody likes to sell grain in a falling market and this couldn’t be more evident than in 2013. Farmers have reportedly sold a record-low amount of grain ahead of harvest. Following several years of record land and grain prices, huge crop insurance guarantees, and low interest rates the best grain marketing strategy has been to wait and sell at harvest. That strategy hasn’t worked this year… so now what? Crop insurance has become the most widely used (and misused) risk management tool by farmers. The most common policy is the Revenue Protection (RP) plan, which allows a grower to buy “guaranteed revenue” based on their average production and the higher of spring or harvest price.* The grower receives an indemnity payment if actual revenue falls below the guarantee level. If used correctly, this type of policy can help growers take advantage of higher prices before knowing their actual production and can prevent growers from having to sell grain dur-LQJ�SULFH�EUHDNV��,Q�EXOOLVK�PDUNHWV�WKH�SROLF\�KDV�WKH�EHQH¿W�RI�D�UHDGMXVWLQJ�SULFH�FRPSRQHQW�WKDW�DOORZV�JURZHUV�WR�WDNH�DGYDQWDJH�RI�KLJKHU�SULFHV�ZLWKRXW�KDYLQJ�WR�VHOO��,Q�EHDULVK�PDUNHWV�WKH�JURZHU�KDV�D�³SULFH�ÀRRU´�DQG�GRHVQ¶W�IHHO�WKH�QHHG�WR�SULFH�JUDLQ��,Q�HVVHQFH��FURS�LQVXUDQFH�incentivizes farmers to hold off on sales until the policy expires. Currently, crop insurance policies have expired. A common mistake when policies expire is to store grain and wait for higher prices. One must realize that after policy expiration there is no more “guarantee”. If you decide to store grain and wait for higher prices, you are speculating. Instead, consider putting a price protection package together that will reestablish guaranteed revenue for your crop. There are several ways of accomplishing this, but the following examples demonstrate two concepts that every producer storing grain should understand:

1. If the market is paying a premium at harvest (prices are higher than in deferred months), NEVER store your grain. Storing grain in this environment means you are willing to pay the market to store your own grain! If you believe prices will increase, look to re-own with futures or buy a call in the deferred months with the extra money you will make from selling grain now (cheaper than nearby prices and gives you a lot of time).

2. When deferred prices are higher than current prices it means the market is paying you to store grain. In order to properly capitalize on this you should forward contract the grain when you decide to store in order to lock in those higher prices. If you believe current prices are “too low”, use some of the extra money made by storing the crop to buy a call option. Generally speaking, crop insurance is the most powerful and effective risk management tool on the market. However, utilizing a few additional tools alongside your insurance policy will enable you to realize its full potential.

* Unless the grower elects for a harvest price exclusion policy (RP-HPE).

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36 Fall 2013

Rob SharkeyTown and county where

you farm: Bradford, Stark and Bureau counties

What are your harvest expectations this fall: Hop-ing for a strong corn yield. Expecting below average soybean yields.

How do those expecta-tions compare to the norm: It’s disappointing to see the beans fall apart. They were a struggle to get planted.

Were there any surprises or anything different about the 2013 growing season? The heavy rains this spring were a big challenge. It required a lot of extra dirt work repairing the washouts.

Do you have any plans for land or equipment purchases or other invest-ments this fall: I’m hoping to update my spring tillage equipment.

How do you expect things will be different for you in 2014: The plan is to apply my nitrogen in multiple stages next year. We’ll see if the weather corporates with those plans.

Robert FechtTown and county where

you farm: Toluca, Marshall County.

What are your harvest expectations this fall? I think we will have above-average corn yields and average soybean yields.

How do those expecta-tions compare to the norm?

I did not expect to have yields at these levels, due to spring flooding with cool temps, later than normal planting, and dry conditions July through September. The weather has not been in the normal range all year.

Were there any surprises or anything different about the 2013 growing season? In April we had flooding and cooler-than-normal temps. Therefore we did not plant corn until May 13. We started to plant beans on May 24 and had flooding for the next week along with cooler than normal temps. We resumed plant-ing on June 8. What surprised me was the small amount of replanting. I only had four acres of corn to replant and one acre of soybeans.

Submitted photo Rob Sharkey


Ken Schroeder/For NorthCentral Illinois Ag Mag

Robert Fecht

CONTINUED ON 37�

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AG Mag 37

Do you have any plans for land or equipment purchas-es or other investments this fall? I have ordered a new sprayer for next year.

How do you expect things will be different for you in 2014? Crop rotation will be the same. Operational chang-es are yet to be determined. My son will graduate from Iowa State University in May. I am looking forward to him coming home to farm, but he may want to have an off-farm job before starting to farm.

Kim AllemanTown and county where

you farm: Magnolia/Gran-ville, Putnam County.

What are your harvest expectations this fall? I think we are going to have a mixed bag of yields because of the moisture. The fields are not going to be uniform. But I expect overall they will be good, and that we will have a good year.

How do those expecta-tions compare to the norm? There’s always problems along the way, but all in all, it was a pretty good year. We got planted late. But we had good weather and it caught up. I think it’s going to be a near normal year.

Do you have any plans or land or equipment purchas-es or other investments this fall? No I don’t. Naturally, I would like to pick up a little more land. I don’t want to be a big farmer at this stage of my life. But I would like to pick up a few more acres to make it a little more viable.

How do you expect things will be different for you in 2014? Well, I think the big-gest thing is going to be the price. We have had good prices for the last three to four years. Even in this year, the insurance price guaran-teed prices. I expect prices to be much lower next year, so that will be something we have to work on.


Dixie Schroeder/For NorthCentral Illinois Ag Mag Kim Alleman

CONTINUED ON 38�

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38 Fall 2013

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William GrayTown and county where

you farm: Tonica, LaSalle County.

What are your harvest expectations this fall? After doing a lot of crop scouting this year, I expect above-aver-age yields, although harvest is a little later than usual.

Were there any surprises or anything different about the 2013 growing season? My 2013 crops were planted a little later than usual with the cold wet spring we had. When it finally did get fit, we put in several long days to get the work done.

Do you have any plans for land or equipment pur-chases or other investments this fall? My 2013 purchases have been made, and at this time, nothing else will be pur-chased until 2014.

How do you expect things will be different for you in 2014? I’m planning on doing the same crops and rotations for 2014. About 60 percent will be corn.


Dixie Schroeder/For NorthCentral Illinois Ag Mag William Gray

AG Mag 39

Terri Simon/For NorthCentral Illinois Ag Mag Jill Guynn is county director for the University of Illinois Extension, Bureau, LaSalle, Marshall and Putnam counties.

Extending knowledge and changing lives

BY JILL GUYNNFor NorthCentral Illinois Ag Mag

Join us in celebrating 100 years of Extension services!

“Think anew ... act anew,” President Abraham Lincoln said as he signed legislation – the Morrill Act of 1862 – which created the Land Grant Uni-versity System. The system was designed to make the ben-efits of education available to all people, not just those with

money and time to spare.Later, in 1914, the Smith-

Lever Act codified into federal law, and provided funding for, outreach endeavors at the land-grant universities found-ed by the Morrill Act. That appropriation for Cooperative Extension was unique in that it set up a shared partnership among the federal, state and county levels of government.

CONTINUED ON 40�

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40 Fall 2013

I am confident that Abe would be pleased and proud to see how his efforts have evolved to ensure that all people have access to the services and education of the research base of the university system.

Extension is for everyone and deliv-ers programs in your communities through agriculture and natural resources training and workshops, community and economic develop-ment seminars, 4-H youth develop-ment programs, parenting, consumer sciences, and nutrition education pro-grams. It also provides online services and unbiased information to help make important decisions.

Extension is here for you – offering a wealth of resources. Please take a few minutes to become familiar with what you can benefit from as you need infor-mation or special programs to meet emerging needs for your family, school, community, business or farm opera-tion.

Here is a snapshot of a just a few of the vast amount of resources available to you when you need it:

-tion updates and research highlights.

the power of the Internet for today’s farm business.

plant and insect identification, diagno-sis of plant disease, insect, weed and chemical injury (chemical injury on field crops only), nematode assays, and help with nutrient related problems, as well as recommendations involving these diagnoses.

Program - online class

team website

-ter

commonly called “septic systems,” today’s systems range from a stan-dard tank and drain field to more complex systems that involve pumps, air compressors, and other types of

mechanical devices.

or contact me at [email protected] to learn more about getting involved as a volunteer (4-H, Master Gardener, Master naturalist and more), or to par-ticipate in local programs of interest to you.

Visit our state website at http://web.extension.illinois.edu/state/index.html and your local Extension

on the state website) to meet staff and volunteers ready to assist with your needs for information, services and lifelong learning programs for special situations and stages of your life.

Jill Guynn is the county director for the University of Illinois Extension, Bureau, LaSalle, Marshall and Putnam counties.

’’‘‘ Extension is for everyone and delivers programs in your communities through agriculture and natural resources training and workshops, community and economic de-velopment seminars, 4-H youth development programs, parenting, consumer sciences, and nutrition education services. It also provides online services and unbiased

information to help make important decisions.


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AG Mag 41


Jo Daviess is the latest county to fall victim to the emerald ash borer, a destructive pest responsible for killing millions of ash trees in North America. As it is the northwestern-most county in the state, EAB officially has spanned across the northern third of Illinois. EAB also was recently found in White-side County and confirmed this July.

The emerald ash borer is a small, metallic-green beetle native to Asia. Its larvae burrow into the bark of ash trees, causing the trees to starve and eventu-ally die. Since the first detection of the pest near Detroit, Mich., in 2002, it has killed more than 25 million ash trees.

The beetle often is difficult to detect, especially in newly-infested trees. Signs of infestation include thinning and yel-lowing leaves, D-shaped holes in the bark of the trunk or branches and basal shoots. Anyone who suspects an ash tree has been infested should contact their county Extension office, their vil-lage forester or the Illinois Department of Agriculture.

Forty-one Illinois counties currently are under quarantine to prevent the

artificial or “human-assisted” spread of the beetle through the movement of infested wood and nursery stock. A new, amended quarantine that includes Jo Daviess County soon will soon be put in place, but not until after IDOA has finished inspecting monitoring traps that were placed in the state this year to track the beetle. The quarantine prohibits the removal of the following items:

stage of development.

larger than 1 inch from ash trees.

bark or the outer 1-inch of sapwood, or both, attached.

the wood of the ash tree that is capable of spreading the emerald ash borer.

conveyance determined by the Illinois Department of Agriculture to present a risk of spreading the beetle infestation.

The counties under quarantine are Boone, Bureau, Champaign, Clark, Coles, Cook, Cumberland, DeKalb, DeWitt, Douglas, DuPage, Edgar, Eff-ingham, Fayette, Ford, Grundy, Henry, Iroquois, Kane, Kankakee, Kendall, Knox, Lake, LaSalle, Lee, Livingston, Macon, Marion, Marshall, McHenry, McLean, Moultrie, Ogle, Piatt, Putnam, Shelby, Stark, Vermilion, Will, Win-nebago and Woodford.

For further information about the beetle, visit http://www.illinoiseab.com/.

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42 Fall 2013

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AG Mag 43

BY TERRI SIMONFor NorthCentral Illinois Ag Mag

Gale and Sandra Casteel of Cam-bridge are busy folks. Between their Cambridge-based business – CSI Homes – family commitments and grandchildren, the couple have plenty of irons in the fire. But when life gets a bit overwhelming, it’s easy to know where you can find Gale and Sandra.

Situated in rural Cambridge, the Casteels’ cabin and adjoining 100 acres is a paradise not just for the Casteels, but for anyone who visits. Rolling hills, a plethora of trees, timber and ponds, it’s also home to the couple’s herd of buf-falo, which roam on 20 acres.

More than 40 buffalo once roamed the serene and peace-ful setting at the Casteels’ cabin, however, the herd has been trimmed to about 25 animals.

“I didn’t get them to make any money,” Gale said as he walked toward the electric fence that con-

tains the large animals. “We do it as a hobby.

“Come here, Walt,” Gale said as he extended his hand toward the huge breeding bull the Casteels have had for years. The animal responds with a grunt and walks toward the fence, careful to avoid the electric wire. Gale said that if the behemoth animals wanted to challenge the fence, they clearly could, but they have no reason to do so.

Casteels love watching their buffalo roam

Photos by Kath Clark/For NorthCentral Illinois Ag Mag Gale and Sandra Casteel enjoy their cabin and adjoining 100 acres of rolling hills, trees and ponds in rural Cambridge. About 25 buffalo roam 20 acres of their property. “I didn’t get them to make any money,” Gale said. “We do it as a hobby.”

In the photo Gale Casteel watches as some

of the buffalo he and his wife, Sandra, have on their farm in rural Cambridge walk toward the electric fence that contains the large animals. Gale said that if the buffalo wanted to challenge the fence, they clearly could, but they have no reason to do so.

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44 Fall 2013

“You gotta keep them happy,” he said. “They’re just like any other animal. You gotta keep ’em fed.”

That feed consists of allow-ing the buffalo to graze, which he supplements with corn and hay.

Gale continues to talk to Walt, like the old friend he is, as other buffalo make their way toward the fence line.

“He’s really a beautiful animal,” he said, nod-ding toward Walt, who is estimated to tip the scales at 2,500 pounds. “They’re really no problem. They’re just fun to watch. ... But you can’t trust them. You just got to be careful. They’re very agile, and they’re very fast.”

Gale takes a ride to the other side of the pasture, and the buffalo take off on a run to follow, hop-ing some corn will be involved. While the brief stampede of 25 buffalo doesn’t sound like thunder or shake the ground, Gale

said one can just imagine how it was on the frontier many years ago, when a herd of thousands of buf-falo the size of Walt would stampede. One can quickly understand the power behind these magnificent animals.

But besides the aesthetic

beauty of the buffalo, the Casteels find the animals on their dinner table more times than not. They slaugh-ter six to eight animals a year, keeping plenty for themselves and their fam-ily and selling the rest to regular customers. A 1,000-pound buffalo will dress

out with 550-600 pounds of meat.

Sandra said the meat has considerably less fat than beef.

“You can adapt any rec-ipe using beef to a buffalo recipe,” Sandra said. “Just remember buffalo doesn’t have as much fat, so you do not overcook buffalo. Just cook it low and slow, adding liquid or a little bit of olive oil. “

The Casteels enjoy all the cuts from the buffalo, but they particularly like the roasts, which they prepare in a slow cooker.

“I normally use a four-quart Calphalon pan to do most of my cooking. I love this pan!” Sandra said. “With this pan and my electric burner, I get results similar to a crock pot.”

So at the end of a long work week, it’s no secret where you’ll find Gale and Sandra Casteel – at home where the buffalo roam, and with a full belly of buffalo meat.


Kath Clark/For NorthCentral Illinois Ag Mag Walt, one of the Casteels’ largest bisons, roams the grounds. Walt has been a breeding bull for the Casteels for years.

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AG Mag 45

Meatballs in Sauerkraut Sauce

2 pounds ground buffalo1 cup bread crumbs1 package dried onion soup mix3 eggsSauce1 cup brown sugar1 can sauerkraut1 can cranberry sauce1 bottle chili saucePreheat oven to 350°. Mix ground

buffalo, bread crumbs, onion soup mix and eggs well. Form into balls, place on cookie sheet. Brown in oven until meatballs are light brown color. Remove from oven and place meatballs in a casserole dish. Combine brown sugar, sauerkraut, cranberry sauce and chili sauce; cover meat. Bake until meatballs are “done,” about 20 to 30 minutes. This recipe is good for a main dish or as an appetizer.

Buffalo ... It’s what’s for dinner at Casteels’ home

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46 Fall 2013

Italian Meatballs2 pounds ground buffalo1 cup bread crumbs1 package dried onion soup mix3 eggs1 1/2 teaspoons garlic salt1 1/2 teaspoons Italian seasoning1 jar spaghetti sauce2 cups shredded Mozzarella cheesePreheat oven to 350°. Mix ground

buffalo, bread crumbs, onion soup mix, eggs, garlic salt and Italian sea-soning. Form into balls, place on cook-ie sheet. Brown in oven until meatballs are light brown in color. Remove from oven and place meatballs in a cas-serole dish. Cover meatballs with jar of spaghetti sauce. Bake an additional 20 minutes. Remove dish from oven, cover meatballs with shredded moz-zarella cheese, return to oven until cheese is melted and golden in color. This recipe can be used as a main dish or as an appetizer.

Burger Soup1 pound ground buffalo burger1 small onion, chopped1 can tomato juice3 packets of sugar substitute

4 carrots, chopped into small chunks5 potatoes, chopped into small

chunksBrown the onion and burger in a

small amount of oil. Add to this the can of tomato juice, sugar substitute, carrots and potatoes. Simmer on low, the longer it simmers, the better it tastes! I like to add a can of Northern beans just prior to serving, simmer long enough for the beans to heat through.

Tenderized Steak1 package of tenderized buffalo steak1 small onion, cut into chunksSalt and pepper to tasteFlour1 can of mushrooms1 can of cream of mushroom soupBrown onion chunks in small amount

of oil add salt and pepper to taste, remove from pan. Dredge tenderized buffalo steak, cut into individual-sized servings, in flour seasoned to your taste. Add oil to pan, brown tender-ized steak pieces until all of steak is browned. Return steak pieces to a deep pan, pour cooked onions over steak pieces, add sliced mushrooms and cover with cream of mushroom soup. Cook on low and let simmer until meat is tender.

Pot Roast1 buffalo roast (any cut)Potatoes, chunkedCarrots, chunkedCabbage, cut into wedgesOnions, cut into quartersBrown the roast in a small amount of

oil, season roast to taste. Turn burner to low and cook for 2-3 hours. Add the vegetables, move roast to top of veg-etables, let simmer until vegetables are tender.

Taco Dip1 pound ground buffalo burger1 medium onion1 green pepper8 ounces tomato sauce1 package taco seasoning mix1/2 teaspoon dry mustard2 tablespoons lemon juice1 package shredded Mexican style

cheeseBrown burger, onion and green

pepper in a small amount of oil. Add tomato sauce, taco seasoning, dry mustard and lemon juice. Let sim-mer. Before serving add cheese and let melt. Serve with warm Tostitos chips.


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AG Mag 47


CropLife America (CLA) celebrated its 80th anniversary in September as the national association representing the crop protection industry during its annual meeting at the Greenbrier Resort in White Sulphur Springs, W.V. The first general session featured a panel discussion with former U.S. Secretaries of Agriculture John Block, Michael Espy, John Knebel and Ed Schafer. During the panel discussion, the former secretaries shared memories from their respective terms in office and reflected on U.S. farm policy. CLA’s President/CEO Jay Vroom served as moderator.

Both Secretary Block and Vroom are natives of Illinois and have main-tained their home state roots in farming, while also pursuing active agricultural industry careers in Washington and around the United States.

Agriculture royalty conveneIllinois well represented at CropLife America’s annual meeting

Submitted photoAt CropLife America’s annual meeting, CLA President and CEO Jay Vroom moder-ated a session with former U.S. Secretaries of Agriculture John Block, Mike Espy, John Knebel and Ed Schafer. CONTINUED ON 48�

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48 Fall 2013

Block was born in Gilson, and before serving as the state’s secretary of agri-culture from 1977 to 1981, he expanded his family’s 300-acre and 200-hog farm into a 3,000-acre and 6,000 hog agribusiness. He was appointed U.S. secretary of agriculture by President Ron-ald Reagan in 1981, a position he held until 1986. He con-tinues to deliver regular pod-casts on current agricultural issues, and recently delivered a podcast on his panel dis-cussion at the CLA meeting.

Vroom has served as CropLife America’s presi-dent and CEO for 25 years and has been a leader in U.S. agribusiness trade associa-tions for his entire career. In addition to his leadership role at CLA, he is chairman of the CropLife Foundation,

a senior member of CropLife International’s Crop Pro-tection Strategy Council, and serves on the board of directors for The Friends of the National Arboretum. A native of Princeton, he was raised on grain and livestock farms in Bureau County and still owns the farm today. He graduated with honors from the University of Illinois Col-lege of Agriculture.

Established in 1933, CLA represents the developers, manufacturers, formulators and distributors of plant science solutions for agri-culture and pest manage-ment in the United States. CropLife America’s member companies produce, sell and distribute virtually all the crop protection and bio-technology products used by American farmers. CLA is also on Twitter and can be found at CropLifeAmerica.



The U.S. Department of Agriculture announced the Fiscal Year 2013 Food for Progress and McGovern-Dole International Food for Education and Child Nutri-tion allocations will benefit more than 10.5 million peo-ple worldwide.

“The United States is com-mitted to achieving global food security and supporting sustainable agricultural pro-duction,” said Tom Vilsack, secretary of Agriculture. “In addition to providing much-needed nutritious food, USDA’s food assistance pro-grams also foster economic growth in the recipient countries.”

Under the programs, USDA purchases U.S. commodi-ties and donates them to government agencies and private-voluntary organiza-tions in targeted countries. Food for Progress recipients in developing countries and emerging democracies sell the commodities and use

the funds to introduce and expand free enterprise in the agricultural sector.

For example, a Food for Progress project in Mozam-bique supports dairy farm-ers’ efforts to improve herd management practices, and increase both the volume and quality of milk. The project also helps dairy cooperatives collect, store, process, and market milk efficiently. This project benefits 27,000 agricultural producers and 3,000 busi-nesses.

The McGovern-Dole Program focuses on low-income, food-deficit coun-tries that are committed to universal education. Partic-ipants either use or sell the donated U.S. commodities to support education, child development and food security. For example, in Kenya, more than 650,000 children in approximately 2,000 schools have been fed with help from the pro-gram.

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AG Mag 49


Fuels America, of which the National Corn Growers Association is a founding member, released a new poll highlighting that a strong majority of Americans sup-port E15 availability at the gas station. Additionally, it showed that nearly four in five Americans believe the oil industry’s ongoing efforts to block the availability of E15 is bad for consumers.

Fuels America conducted the poll of more than 1,200 U.S. adults to gauge con-sumer opinions of E15 — fuel made of 15 percent ethanol and 85 percent gaso-line. This information comes on the heels of E15’s re-entrance into the American fuel market recently. Forty stations in nine states now offer the fuel, approximately 14 months after it was approved by EPA for com-mercial sale. E15 currently sells for between 10 and 20 cents less per gallon than regular gasoline.

The results also revealed that:

support E15 availability at their local gas stations.

want access to even higher ethanol fuel blends, such as E20 or E30.

believe the oil industry’s efforts to block the avail-ability of E15 are bad for consumers.

“The National Corn Grow-ers Association stands behind American drivers’ right to have choices at the pump,” said NCGA President Pam Johnson. “This poll clearly shows that Ameri-cans agree. Ethanol provides a renewable, domestically produced fuel choice that saves the environment and consumer dollars. Efforts to block E15 availability deprive our nation of that choice.”

The data was released dur-ing a teleconference that

also debunked a number of myths that oil and gas indus-try lobbyists continue to per-petuate about E15.

Renewable Fuels Associa-tion spokesperson Robert White discussed a recent Petroleum Equipment Insti-tute report on the low cost of retrofitting a gas station to sell E15. The American Petro-leum Institute is currently running a campaign against the fuel in order to protect its monopoly and profits and has told the public that it would be too cost prohibi-tive to retrofit gas stations for E15, NCGA says. This is not the case, according to a recent report coming from the nonpartisan PEI. The report notes it would cost slightly less than $0.01 per gallon of gasoline sold for the average retail gas station.

Additionally, an E15 retailer who owns several transporta-tion energy retail locations shared his experiences talking to customers he hears from customers. Auto-mechanic and radio personality Bobby Likis, also addressed the safe-ty of E15 for engines.

“E15 is the most tested fuel in history and is absolutely safe for every car model year 2001 or after,” said Likis. “The campaign the oil industry is running to make consumers think otherwise has no scientific founda-tion. In fact, E15 is cleaner burning than traditional gasoline which can improve performance – one of the many reasons NASCAR uses it exclusively.”

Fuels America is a coalition of organizations commit-ted to protecting America’s Renewable Fuel Standard and promoting the benefits of all types of renewable fuel already growing in America. Fuels America is founded on a simple core principle: Renewable fuel is good for the U.S. economy, for our nation’s energy security and for the environment.

Poll: Support for availability of E15

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50 Fall 2013

Promoting grain bin

safetyChecklists, safety decals,

online info available

SUBMITTED BY RHONDA BURKEDeputy Director of Public Affairs

U.S. Department of Labor

CHICAGO – Five seconds. That is how quickly a worker can become engulfed in flow-ing grain and be unable to get out.

Sixty seconds. That is how quickly a worker can be com-pletely submerged in flowing grain. More than half of all grain engulfments result in death by suffocation.

In 2010, at least 57 U.S. workers were trapped and 26 killed in grain engulf-ments, the highest num-ber on record. Among the deaths were two Illinois teens in Mount Carroll and a 49-year-old worker who had entered a grain bin “a mil-lion times.”

In the past 50 years, more than 900 cases of grain engulfment have been reported with a fatality rate of 62 percent, according to researchers at Purdue Uni-

versity in Indiana.Suffocation can occur when

a worker becomes buried by grain as he walks on mov-ing grain or attempts to clear grain built up on the inside of a bin. Moving grain acts like quicksand and can bury a worker in seconds. “Bridged” grain and vertical piles of stored grain also can collapse unexpectedly if a worker stands on or near it.

Record death and injuries in 2010 led the U.S. Department of Labor’s Occupational Safe-ty and Health Administration to reach out to the agricultur-al and grain-handling indus-tries to find ways to prevent deaths and injuries.

Now OSHA and the Grain and Feed Association of Illi-nois have formed an alliance to get the word out on pre-vention to farmers in Illinois, Iowa and a host of other Mid-western states.

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They have developed a grain bin entry permit, which is a checklist to help those working in and around grain bins to iden-tify and control potential hazards.

They also are distribut-ing red, stop-sign-shaped decals that can be adhered to grain bin doors with reminders to those enter-ing to lockout potentially hazardous equipment, stay clear of waist high grain, cover floor holes and to follow other safety prac-tices.

Individuals or companies can email the Grain and Feed Association of Illinois at [email protected] to request the decal. Up to three decals will be sent to one location free of charge; after that, they are $5.40 each, which covers the cost of printing. The decals are 10 inches square and printed on a heavy vinyl to withstand outdoor expo-sure.

OSHA also has published information related to com-mon grain industry hazards and abatement methods, proper bin entry techniques, sweep auger use, and many other grain related topics. Go to www.osha.gov/SLTC/grainhandling/index.html to learn more.

In addition, the University of Illinois was awarded a U.S. Department of Labor’s Occupational Safety and Health Administration Susan Harwood Training Grant Program and has partnered with the Grain Handling Safety Coalition for the development of training materials and out-reach to educate workers and employers on how to recognize, avoid and prevent safety and health hazards in grain bins.

The coalition can pro-vide all the necessary training materials to train farmers, commercial grain handling employees, youth, rescue workers and more for free or at a very reduced rate.

There are five different

safety topics available including an overview of grain handling and stor-age safety, grain bin entry as well as entanglement, fall and confined space hazards. GHSC also offers “Train the Trainer” courses for companies and com-munities to have a local resource for training. Go to www.grainsafety.org to learn more.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful work-places for their employees. OSHA’s role is to ensure these conditions exist for America’s work force by setting and enforcing standards, and providing training, education and assistance.

To ask questions, obtain compliance assistance, file a complaint, or report workplace hospitalizations, fatalities or situations posing imminent danger to work-ers, the public should call OSHA’s toll-free hotline, 800-321-6742; go to www.osha.gov for more informa-tion.


Alex T. Paschal/ For NorthCentral Illinois Ag Mag

Here’s a look at the inside of an empty 100,000-bushel grain bin on the Koster farm on Science Ridge Road in rural Sterling.

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