WHAT YOU NEED TO KNOW ABOUT THE TPP

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1. What is the TPP?

TPP stands for Trans-Pacific Partnership. The TPP creates rules and agreements for trade all over the world. The amount of tax on imports and exports and other regulations for countries are laid out in this agreement. A review of the effects that the TPP will have on agriculture in the United States can be read in full here.

2. What will the TPP do for United States Agriculture?

The implementation of the TPP will increase cash receipts for livestock. What this means is that the United States will trade more livestock products to other countries, increasing income from what we get from these goods now. This estimated raise in livestock exports pairs well with the expected decrease in the country’s trade of corn. This is because we will be able to keep that corn in the country and use it to feed the higher number of livestock that we are growing for trade. This use of corn is adding more value to the industry than it would if it was simply traded in bulk. Also, the overall farm income is expected to increase $4.4 billion for the country which is a very positive result for agriculture.

3. What will the TPP do for Illinois Agriculture?

1As the deal increases cash receipts for the entire country, it would also do great things for Illinois agriculture. The chart shown explains that cash receipts for many Illinois products increase greatly with implementation of the TPP. This increase in income also comes with an estimated 960 jobs into the Illinois economy, according to the American Farm Bureau Federation. Corn is the biggest agriculture industry in Illinois and the exports from the country are expected to decline; however, Illinois is a perfect example of how that corn that is not being exported can be used to raise livestock. The TPP will also increase overall trade for other Illinois products such as pork, soybeans, and processed foods.

This trade deal is a big step for agriculture and the economy of the country. The American Farm Bureau Federation stresses the importance of the United States getting on board with the deal quickly. Other countries are ahead of the United States in making trade agreements that could help their economies.

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There will soon be more news on the ratification of this in the United States.

Any questions? Ask in the comments!!

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Amanda Rollins
Illinois State University

EVERYTHING YOU WANTED TO KNOW ABOUT CORN IN ILLINOIS

1. Illinois corn farmers are growing field corn, not sweet corn.

I know this is confusing – but 99% of the corn grown in Illinois is not the corn you eat on your dinner table.  That corn is sweet corn, bred for its sugar content so that it tastes so amazing!  The corn we grow in Illinois is field corn (or dent corn) that is bred for starch.

Field corn is a grain.  Sweet corn is a vegetable.

2. Illinois planted 88 million acres of field corn and 555,000 acres of sweet corn.

We also grew 13.6 billion bushels of field corn compared to 137 million bushel equivalents.(Equivalents because sweet corn is weighed still on the cob so we have to remove the cob to make them comparable.)  And the crop value of Illinois field corn is $49 billion – considerably more than sweet corn’s $1.02 billion value.

field-corn-sweet-corn3. The two plants even look completely different in the field.

Sweet corn is shorter, has larger tassels visible, and is often a lighter green.  Field corn is taller, has smaller visible tassels, and is darker green.  We harvest sweet corn in the milk stage in the middle of summer.  We harvest field corn in the fall when the plant starts to die and the corn kernels dry up.

4. Illinois is in the top five states in ag cash income and crop cash receipts.

In English, this is code for the Illinois economy is built on ag.  It’s one of our top industries.  Illinois is the number 2 corn producer (behind Iowa), the number 3 ethanol producer, number 2 in pork production, and the largest exporter of corn in the country!

5. Most of the corn grown in Illinois is exported out of the state.

where-does-corn-goIn Illinois, 47 percent of the corn is exported out of the state.  Of the remaining corn, 27 percent is made into ethanol, 21 percent is used for processing (corn plastic, high fructose corn syrup, etc), and 5 percent is used to feed cows, pigs, and chickens.

Of that 27 percent used for ethanol, 1/3 is sold as a by-product of ethanol production that makes an excellent livestock feed.  So some of the ethanol corn is actually used twice – by the ethanol industry and the animal agriculture industry.

6. Want to know more?  Follow us on social media!

IL Corn has many ways you can learn more about corn grown in our state!  Check us out on Instagram, Snapchat, Facebook, Twitter, Pinterest, and YouTube!

FIVE THINGS TO KNOW ABOUT YOUR FUEL

When I pull into the gas station I am normally rolling in on fumes just hoping I don’t run out of gas. I pull into the nearest possible pump and begin fueling. Normally I am in such of a hurry that I don’t take time to stop and look at what I am actually putting into my vehicle. Turns out, it may be more than just fuel. It is a fuel blend that may be doing more than you think… ethanol. Here are five things you may not have known about ethanol in your fuel.

  1. High Octane

4-5-16Ethanol_Photo_1You may be asking yourself, what does high octane mean? I myself was unsure of what it meant until I researched it in further detail! According to the Federal Trade Commission, octane ratings are a measurement of the ability of gasoline to repel engine knock, which is a rattling noise resulting from a premature ignition of a condensed fuel-air blend in one or more cylinders. Ethanol happens to be considered an octane-enhancing additive. E10, which is a ten percent ethanol blend in gasoline, happens to be offered in all grades of gas and has the ability to be used in most models of vehicles regularly.

  1. Low Cost

Ethanol is not the only high-octane enhancer that has been used. Aromatics have similar high-octane enhancers compared to ethanol and have been used in many blends of gas in the past. Although, aromatics are a more expensive commodity as compared to ethanol. In 2013 an aromatic called benzene was the highest prices aromatic, but has since disappeared in early 2015. According to AgFax, a study was done that showed that purchasing ethanol, as a high-octane blend, was cheaper than the average price of three high-octane aromatic enhancers.

  1. Renewable

Ethanol is considered a renewable fuel. It is made from a wide array of plant materials commonly known as biomass. One industry that specifically benefits from ethanol is corn production because corn has high starch content. Nearly 40% of the U.S corn production is being used for the ethanol industry. Utilizing these ethanol blends in today’s gasoline is a successful way to oxygenate gasoline and reduce air pollution.

  1. American Made

4-5-16maxresdefaultMany ethanol production plants are located in the Midwest because there is a large majority of corn production in the Midwest. According to the U.S. Department of Agriculture about 90% of ethanol is transported by train or truck while the remaining 10% is traditionally transported by barge. Therefore, a large majority American Made ethanol remains within the United States for gasoline blends such E10 or E85.

  1. No wars

Because Saudi Arabia and the Middle East is a large producer in the production of petroleum, this causes great conflict with buying and importing into the United States. Often prices are extremely high. The advantage of American made ethanol is knowing where it is coming from. We are extremely independent in the production of ethanol, which gives us advantages both from an economic and environmental standpoint.

Next time you stop to fuel up… consider that you are putting more than just regular fuel in the tank. You are putting in a blend that is so much more.

Nicole Chance

 

Nicole Chance
University of Illinois

THE REASON FOR UTTERLY LOW MILK PRICES

Milk is one of the integral parts of my breakfast. Whether served as a full glass or mixed in with my favorite cereal, I have milk every day. Drinking milk is an old standby for parents: it develops strong bones and gives you the Vitamin D you need daily. This adage may gain new ground, because right now milk is incredibly cheap. Prices in places like Wisconsin are down a third from a five-year high. But why is it so cheap? Let’s take a look.

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Credit: Peter Thomson, La Crosse Tribune

Shipping Out Isn’t Shaping Up

America exports roughly 15% of its milk production overseas. Yet, different countries have stopped importing American dairy. China, a major importer of American dairy, has an abundant supply that results in smaller milk purchases. It also does not help that economic sanctions against Russia have halted exporting to the Asian country. Exporting less creates a higher American supply than demand for milk. This overabundance of supply causes prices of milk to plummet.

Milk Means More…Competitors

While exports represent 15% of American milk sales, other countries are coming to play. China has begun producing more milk than it imports. Additionally, New Zealand is a major competitor, only adding to the growing milk production. Equally, this competition forces market prices to decrease. Therefore, the declining exports yet growing milk production by competing countries creates an atmosphere that demands unfavorable action to move milk off the grocery shelves (e.g. slashing prices).

The Cost of a Dollar

The rising strength of the U.S. dollar is another important factor to consider. A strong dollar may signal a stronger U.S. economy than seen in recent years, but that makes American dairy less attractive. Rather than spend loads of money on high-cost milk, importers might choose cheaper options from different countries. Reports of federal interest rates rising will only strengthen the U.S. dollar. Therefore, dairy prices may continue to drop due to less exporting.

Ultimately, low prices may be good for consumers, but American dairy farmers are already feeling the effects.

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Taylor McDonald
Communications Assistant
IL Corn

5 THINGS ABOUT THIS PHOTO: HUGE PILES OF CORN

We’ve got some great photos in the IL Corn library – photos that speak volumes about what we do and who we are as an organization as well as who the farmers are that we serve! This week, we’ll feature a few of those photos as well as share the lessons you can glean from them!

Huge Piles of Corn!

corn pile with men

  1. When corn comes out of the field, farmers put it into semi trucks (or other sorts of trucks, but usually semis) and haul it to the elevator.  The elevator is a company that buys, sells, and stores grain.  It is called an “elevator” because the corn is elevated into huge silos for storage.
  2. But in some years like 2014, we produce more corn than we have room to store.  So the elevators put up temporary storage, like the piles you see above, just to keep grain moving out of the field.  To maintain the grain in the same quality in which it arrived, these piles will be covered with huge tarps to keep moisture from getting in.  The piles were also poured on top of huge tiles that will circulate air under the pile and prevent spoilage, damage, and mold
  3. Elevators must apply for a permit from the state to create temporary storage like this – and they can only leave this corn laying here for a short time.  So as they sell the corn, the corn in these piles will be the first to go.
  4. Corn leaves the elevator via train, truck, or river barge to go to other states (like Texas) or other countries to feed livestock.  In Illinois, just under half of our corn leaves the state to feed livestock.
  5. Many people who aren’t familiar with farming understand that the yields we get per acre are pretty static, but nothing could be further from the truth.  Every year, because of superior seed genetics and more efficient crop management practices, our potential yields increase.  Weather or pests sometimes challenge the yields, but the fact remains that our yield potential has a significant upward trend.  We are producing more corn every year than the year before!  That’s great news for a growing world population!

BEST POSTS OF 2015: HOW DOES MEXICO REINVIGORATE IL RURAL COMMUNITIES?

As we head into 2016, we’d like to look back at the best performing posts of 2015.  All week, we’ll repost the articles you liked best!  Enjoy!!

HOW DOES MEXICO REINVIGORATE IL RURAL COMMUNITIES?

mexicoMay is World Trade Month and this week in particular has been designated to celebrate agriculture’s contributions to U.S. trade.  If you’ve always wanted to know more about how farmers contribute to our economy via trade, you’ve come to the right place!

(In reality, I’m guessing you’ve never considered that farmers are a major contributor to the products leaving the U.S. and the economic boom that trade provides American citizens.  This is your week!  Learn something!)

Mexico is a hugely important buyer of corn nationally, and also has a great impact as a buyer of Illinois corn. Our river transportation system sends much of our corn directly to the Gulf of Mexico, where it makes the short trip to Mexican markets. This should remind us how important our river transportation system is, and with it, the need for repaired and upgraded locks and dams.

Illinois Corn Marketing Board partners with the U.S. Grains Council to expand export opportunities for corn, ethanol, and DDGS. USGC leverages Illinois farmer checkoff dollars with matching dollars from USDA to expand the work. Learn more about USGC’s work in Mexico at www.bit.ly/1zsm5Ml.

Here are some specifics about Mexico as a buyer of corn:

  • USDA weekly sales info as of 4/23 says Mexico is the top market for U.S. corn this marketing yr, buying 9.5 MMT (million metric tons) so far
  • Mexico imported 10.4 MMT of yellow corn during the 2014 marketing yr, making it 2nd largest market for U.S. yellow corn
  • Mexico imported more than 1.5 MMT of U.S. DDGS last year, making it the second largest market behind China
  • A critical trade deal made booming U.S. grain sales to Mexico possible – read more at www.bit.ly/1FKvRuE
  • Mexico farmers see dramatic results in DDGS feeding trials, building confidence, sales – more at www.bit.ly/1OTJKMM

What’s this mean for you as a non-farmer, an eater, and an American?

  • Vibrant and growing markets mean increased farmer income.
  • Farmers reinvest additional income into their farms.
  • This money drives the Illinois economy, provides jobs, reinvigorates rural America, and promotes investment in new technologies to make agriculture more efficient.

ALL WE WANT FOR CHRISTMAS: BETTER RELATIONSHIPS WITH OUR CUSTOMERS – OVERSEAS AND DOMESTIC

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It’s become a tradition and we aren’t stopping now!  Want to know what’s on IL Corn’s Christmas list this year?  We’re hoping Santa brings us …

 

 

5. Better relationships with our customers – overseas and domestic

When I interviewed our staff and this one floated to the top of the list, I have to admit thinking that it was a bit different from the things we’ve asked for in past years.  Still, having a good relationship with our customers is a really important thing and maybe something so broad that we’ve overlooked the impact it could have on a host of other things we’d love to have.

Relationship building at its best: IL Corn hosts a Japanese trade team!
Relationship building at its best: IL Corn hosts a Japanese trade team!

Having a better relationship with our overseas customers – really understanding what Chinese buyers want in terms of quality corn and amazing meat products as an example – would have a massive impact on what we were able to supply them and the markets we could drive in the U.S.

It could minimize impacts to U.S. farmers when new traits are approved in our country, but not yet approved for sale to other countries.  What results from this catastrophe is that a lot of corn sits around waiting for a place to be sold.

It could maximize the extent to which the entire globe works together to get food to the hungry people who need it.  Better relationships with customers always seem to impact other areas of our lives, don’t they?  A better working relationship with Colombia for example would surely result our countries working together more efficiently to accomplish other goals, wouldn’t it?

And we're trying to talk to all the Americans who eat about what we do as well!
And we’re trying to talk to all the Americans who eat about what we do as well!

Having a better relationship with our domestic customers (livestock farmers, ethanol manufacturers, and the Americans who eat) would change a lot of dynamics here in the States as well.  Understanding each other would help us to be on the same page for legislative initiatives or attacks on agriculture.

Having a better understanding of what Americans who eat are looking for could help us in a host of ways as well – I’m sure we’re already doing a lot of what they hope we’re doing, but we just don’t understand each other well enough to speak the same language!

In the end, this relationship building gift would impact market opportunities in a huge way and would help us to communicate better with the folks who buy our corn.  It’s a win-win for everyone!

Please Santa, please!  Help an industry out!

Mitchell_LindsayLindsay Mitchell
ICGA/ICMB Marketing Manager

 

 

We also want:

4. Fuel Pump Standardization

3. A Functioning State and Federal Government

2. More Stable Farm Profitability

EVERY AMERICAN SHOULD FOCUS ON THESE 7 THINGS

“American” defined by Webster’s Dictionary as relating to, or characteristic of the United States.

patriotism_-_rooseveltThe definition is a broad statement of what an “American” can be defined as.  People from America sometimes don’t full understand the concept of what an “American” may resemble.  I came up with a short list of what an American should focus on when they say claim to be “American”.

#1 Patriotism: Being proud of where you came from should be a #1 focus for Americans. We should be proud of where we came from and the people that live on this great land we call “Home”.

your_vote_counts#2 Freedom: Freedom is what America was founded on.  Without freedom our country would be forced to surrender the rights that we sometimes take for granted. Many countries today are not free to practice voting, religion, or speak. —-I wouldn’t be able to write this blog if those freedoms weren’t in place.
#3 Voting: Having the right to participate in an election is a key way to exercise being American. Many don’t participate in this right and are missing out. We forget that we are in charge of making America great for generations to come and this is how we can do it!

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#4 Military: Americans should invest in serving others. By serving others we can join the military, celebrate military holidays, and welcome home soldiers.  Those serving are giving their lives to provide us with Freedom and we should show our gratitude for that privilege.

#5 Equality: Having equal rights is another focus for Americans. We should others the way we want to be treated. By treating others equally we can achieve this focus throughout America.

download (1)#6 Progress: As Americans, we should always strive to be progressive. Progress can be a broad term for many but as long as we are continuing to better ourselves and learn from the past ..we can progress.

And Finally….

#7 Buying:  Buying to support our American companies is a main focus that can be achieved each day.  Going to the grocery store and investing in American made products is way to buy American. The American consumer is keeping jobs in America and keeping money in American pockets by keeping it in our country.

Another example is fuel selection… 145

Buying ethanol is a simple way to be American. We drive to many places; grocery store, school, work, etc…. We have a choice to what fuel type we choose to pick.  Buying ethanol fuel is environmental friendly, less dependent on foreign oil, and keeps money in America. It’s overall a Win, Win for everybody!

If you keep these seven focuses as an American, you will have a good idea of what a true American resembles.  These simple focuses can help show your patriotism and ultimately be American Made!

THEAThea Fruhling
Illinois State University