by Tim Alexander

Farm Income Down, Family Living Costs Rise

URBANA – With margins tightening, farm families should closely monitor their family living expenses. That’s the recommendation of Brad Zwilling, Brandy Krapf and Dwight Raab, speaking for the Farm Business Farm Management (FBFM) Association and the University of Illinois Department of Agricultural and Consumer Economics.

In an October 17 post shared on the U of I’s farmdocDAILY website, the three ag economists noted that the 2013 total noncapital living expenses of more than 1,300 FBFM-enrolled farm families averaged $80,716, or $6,726 per month. Including an average of $8,414 for capital purchases, the average yearly cost of noncapital living expenses was $89,130– an increase of $4,118 per family over 2013.

The increase came after income and social security tax payments saw a 51 percent increase over 2012. Farm families paid an average of $40,328 in income taxes in 2013, compared to $26,718 the previous year. In the same time period, nonfarm income increased to $38,019, continuing a ten-year, 39 percent increase in nonfarm income. Some 48 percent of the net farm income per acre is spent on family living expenses, the economists found.

“If we look at the average year over year increase for the last ten years, we will project an annual increase of 3.4 percent per year. The five-year annual increase would average 2.5 percent. Therefore, as you work on your crop budgets, keep in mind that a 60 cent price change on 200 bushels per acre corn is about equal to the average total family living expense per acre,” the economists cautioned.

Lower Consumer Pork Prices Next Year?

SPRINGFIELD – How much of an impact the deadly porcine epidemic diarrhea virus (PEDv) will have on winter swine production is a hot topic of discussion. Purdue University agricultural economist Chris Hurt noted in a late September essay that more baby pigs survived the disease this summer than expected, which should help boost pork supplies by the end of the year and into winter. In addition, the number of pigs per litter this past summer was down just 1.6 percent from the previous summer– much smaller than losses in the previous two quarters. The number of market hogs in the U.S. was around one percent higher than projected by the USDA, according to their most recent Hogs & Pigs Report.

The result is that more pork will be coming from more pigs per litter, more farrowings and more weight, according to Hurt. Tim Maiers, public relations director for the Illinois Pork Producers Association, concurs– if the decline in PEDv mortality rates continues through autumn and winter.

“If we continue to see pig numbers per litter increase back to the levels before PEDv, we’re adding inventory on the market. If we see a drop in PEDv (piglet deaths) this winter, and farmers hold back some gilts this winter as they’ve indicated, we’re going to have more animals farrowing and more per litter. That’s going to put more pork on the market next year,” Maiers said.

If exports stay steady or increase, this could mean lower prices for consumers facing sticker shock over increases in pork products, according to Maiers.

EPA Registers New Herbicide Mix

BLOOMINGTON – After years of study, the U.S. EPA announced last week it would register– or make available to farmers and the public– Enlist Duo (™) herbicide containing 2, 4-D and glyphosate for the purpose of managing resistant weeds. “This is great news for those who have had problems with glyphosate-resistant weeds,” said Jean Payne, president of the Illinois Fertilizer and Chemical Association (IFCA).

Many agricultural organizations supported the EPA decision, including the Ill. Farm Bureau and Ill. Corn Growers Assoc. “This decision reflecting scientific research on Enlist is commendable,” wrote Lindsay Mitchell of Illinois Corn, in an Oct. 15 Daily Update to members. “This assessment is the third time in recent years that EPA has evaluated the safety of 2, 4-D and the safety finding is consistent with past assessments that EPA has performed for 2, 4-D. EPA comprehensively reviewed 2, 4-D in 2005, once more in 2012 and now again in 2014 in response to the current application.”

With the approval, the U.S. joins Canada, Mexico, Japan and 26 European Union members in allowing farmers to add 2, 4-D herbicides to their toolbox for fighting resistance in weeds. Payne told R.F.D. that the IFCA would update its online pesticide application program (available at www.ifca.org) to reflect proper mixing, handling, storage, equipment cleaning and transportation practices for 2, 4-D products soon. Illinois is one of six preliminary states granted approval.

100 Bushel Bean Challenge Met

PERU – An independent agronomist has confirmed that Dan Arkels, a LaSalle County producer, has met the Illinois Soybean Association’s (ISA) 100-Bushel Challenge program for soybeans. The Peru farmer recently harvested a whopping 103.95 bu./acre from his 30-acre county soybean test plot, the ISA announced.

“In my world, this is like winning the world series,” said Arkels, in an ISA news release. “Someone needed to prove it’s possible to raise 100-bushel soybeans in Illinois, and I was lucky in that I had the right growing season to do it.”

Arkels’ 2014 soybean production out-yielded the previous ISA Yield Challenge program winner by nearly 15 bushels, noted Donald Guinnip, ISA production chair from Marshall. “We are excited to congratulate Dan on achieving this important milestone in Illinois agriculture. Our goal for the 2014 Yield Challenge was to have growers reach for the 100-bushel mark and Dan has proven that it’s possible, given today’s high-performing soybean varieties and smart management decisions,” he said.

Arkels worked with local seed dealers and his Farm Service Agency when making key production decisions. He additionally attributed his success to using the latest in soybean seed genetics and working to keep plants healthy all season. Arkels selected a 3.4 maturity level soybean variety “in hopes of capturing more sunlight and more of the growing season,” he said, and used a preplant application of potash and phosphorus.

Illinois Farm Fact:

Illinois farmers are expected to produce a record 563 million bushels of soybeans in 2014. (ISA)

(Tim Alexander is a freelance reporter who writes agriculture, news and feature articles for the News Bulletin, Farm World and many other publications.)