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Attention All Illinois Agriculture Producers
Application Deadline is March 16, 2007

Two leading drainage industry companies Agri Drain Corp. of Adair, Iowa and Springfield Plastics, Inc of Auburn, IL have teamed together to share information about a new cost share program available to producers. This program assists the producer in developing drainage water management (DWM) plans.

Illinois NRCS has appropriated $325,000.00 for the development of DWM plans under the EQIP program for fiscal year 2007. Click here for more details. (Microsoft Word format)

Calendar

05/05/07 – 2pm
ILICA Board Meeting – Springfield , IL

06/16/07
ILICA Summer Picnic & Golf Outing – TBA

07/17-18/07
Port Industries Field Day – Palmyra , MO

08/20-24/07 (Tentative Date)
ILICA Conservation Expo – Colfax , IL

08/28-30/07
IL Farm Progress Show – Decatur , IL

ADMC receives Nation's largest Conservation Innovation Grant

DES MOINES, Iowa -- The Agricultural Drainage Management Coalition (ADMC) showcased some of the innovative practices that precipitated its receipt of a conservation innovation grant during a demonstration to Merlyn Carlson, USDA Deputy Undersecretary for Natural Resources and the Environment. The grant will examine the impacts of drainage water management on Midwestern row-crop agriculture, a practice that controls subsurface drains to better conserve water and reduce nutrient loss. The project will involve farmers and researchers from Minnesota, Iowa, Illinois, Indiana, and Ohio. For more information on this issue, read the memo.

Photo courtesy of Agricultural Drainage Management Coalition
Photo courtesy of ADMC

Plastic Pipe Use Continues to Grow
Press Release: June 16, 2005
Engineers now can have even a greater level of confidence in the use Dual Wall Polyethylene Pipe for storm drains. ASTM recently approved Standard F 2306, Annular Corrugated Profile Wall Polyethylene Pipe and Fittings for Gravity Flow Storm Sewer and Subsurface Drainage Applications. This standard gives engineers specifications for the use of 12 to 60 inch High Density Polyethylene (HDPE) pipe to be used in municipal storm sewers. Engineers will now be able to use both AASHTO and ASTM standards when they specifically request HDPE Pipe be used on their projects.

The popularity of plastic pipe has grown in unprecedented numbers over the past 20 years. HDPE pipe first found its place in the agricultural market improving drainage in the fields, while replacing clay tile. It's use has since widely spread to highway applications. State highway engineers across the country requested there be standards for the manufacture of this pipe to insure consistent and reliable quality in their projects. The issuance of this standard gives the engineer a high quality cost effective alternative to traditional materials.

Duck's Unlimited Announces Illinois River Water Quality Initiative (Feb 05)
Duck's Unlimited announced the Illinois River Water Quality Initiative.
Landowners in nine counties (Bureau, Marshall, Putnam, Peoria, Woodford, Stark, Fulton, Cass and Menard) along the Illinois River are eligible to receive cost share assistance to install multi-purpose soil, water and wetland conservation practices on their property. Drainage management is one of the practices eligible for 100% cost share under this program. Click here for complete press release.
Polyethylene Resin Continues to Rise (Dec 04)
Polyethylene resin used to make drainage pipe continues its climb upward.
This type of plastic ended up over 65% for the year. With the pressure on natural gas and crude oil prices there does not appear to be relief in sight. The market is also being strongly effected by the export market particularly China. The predictions for 05 are for continued increase although not as severe as 2004. Caution should be used in any type of forward pricing of pipe. Click here to see graph of resin history.  
Illinois NRCS Announces Drainage Management Eligible for Cost Share (Dec 04)
Illinois NRCS announces that Drainage Water Management is now eligible for cost share under the EQIP program. The cost share will cover 60% of the cost of the control structure and includes a $5/ acre management fee for up to 3 years to the landowner. This is the first year that Drainage Management has been covered under EQIP for cost share. See news release from Illinois NRCS.
Illinois Hosts Drainage Tour (Sept 04)
Illinois NRCS officials and members of the Agricultural Drainage Management Coalition hosted the Illinois Drainage Tour. NRCS officials from across the U.S., farm organization representatives, environmental groups and members of the drainage industry went on a 5 site drainage tour in around Champaign, IL. The sites visited were research sites where drainage water management is being practiced. One of the sites a drainage water management control structure was being installed.

Polyethylene Pricing Spiral Continues Upward (Jan 04)
Polyethylene resin pricing continues to spiral upward. High feedstock costs are being blamed for this increase. Review this analysis to learn more about polyethylene resin pricing. Review this update from the plasticsexchange.com. 

New Yard Expansion Complete (Nov 03)
Springfield Plastics, Inc. completed the construction of the expansion of its storage yard. This expansion increases the size of the yard to 21 acres. This is the 2 nd phase of a plant expansion which started in 2000 and is expected to be completed in 2005. Company President Steve Baker indicated that the new storage will allow the company to serve its customers in a more efficient manner with an even higher quality product.

Polyethylene Resin Pricing Continues Upward (Nov 03)
The pressure on polyethylene resin prices continue upward. Review this update from the plasticsexchange.com.

The Plastic Pipe Institute Releases Statement on Use of Recycled Materials (Jan 2003)
The Plastics Pipe Institute released Statement U “PPI Position on Use of Recycled Materials in Polyethylene Pipe”. This statement recommends that recycled materials not be used in polyethylene pipe until standard setting bodies have established the requirements and criteria for such use.

Jobs and Growth Tax Relief Reconciliation Act of 2003 Signed into Law (May 2003)
The Jobs and Growth Tax Relief Reconciliation Act of 2003 was signed into law by President Bush. This law has several important provisions in it that will affect the drainage industry.

The bonus depreciation deduction has been increased from 30% to 50% for qualifying property acquired after May 5, 2003 and placed in service before January 1, 2005. This must be new property and depreciable over a period of 20 years or less. The expensing election under Sec. 179 has also been increased to $100,000 from $25,000. This provision expires on December 31, 2005.

How will these provisions affect the various parties involved in the drainage industry. The contractors will be able to take advantage of this through faster write-off of their equipment purchases. Farmers or landowners in certain situations may be able to recover almost the entire cost of a drainage system in one year using these new provisions. There is also an important window of opportunity for these farmers and landowners. Drainage systems are normally written off over a 15 year recovery period. Since these provisions sunset in 2005 the farmer/landowner should give serious consideration to accelerating his drainage projects in this window to take advantage of this important tax break. Most tax advisors recommend using the expensing election on assets with long recovery periods.

Please consult your tax advisor to see how you can benefit from these new provisions.
Agricultural Drainage Management Systems Task Force – “ Saving Our Precious Resources from Going Down the Drain”
The Agricultural Drainage Management Systems Task Force (ADMS) is a collaborative effort of USDA-ARS, Cooperative Extension Service, NRCS, agricultural university academics and other interested parties. The task force believes that water management for agriculturally drained lands can be improved.

Practical experience and research has shown that modifications to existing drainage management systems or improved designs of new and replacement systems allows for better management and timing of water releases. Farmers are finding that these modifications will reduce losses of nutrients, such as nitrates, and additionally conserve water in the soil for crop uptake and use during drier periods.

The initial focus of the task force will be the six midwestern states of Iowa, Illinois, Indiana, Ohio, Minnesota and Missouri. The task forces first action is an extensive review and recommendation of technologies for possible technical and financial assistance by NRCS.

Source: Charter - Agricultural Drainage Management Systems Task Force

NRCS Announces EQIP Fund Decisions (May 2003)
IL—State Conservationist Bill Gradle has announced funding levels for 2003 EQIP contracts and how funds will be divided in order to address resource concerns in Illinois.
Allocations given to Illinois for the 2002 Farm Bill’s Environmental Quality Incentives Program (EQIP) allow $9,220,000 for financial assistance and cost-share to Illinois producers committed to putting conservation systems on the ground. After multiple meetings with the State Technical Committee and others, NRCS elected to dedicate 60% of the total EQIP allocation to livestock-related conservation operations and 40% to non livestock-related operations. Within the livestock operations (60%), funds will be further divided to directly target both grazing and confinement operations.
Most cost-share percentages for conservation practices hover around 60%, according to NRCS Farm Bill Coordinator Paula Hingson. "Higher rates are available for those who qualify as limited resource producers and beginning farmers."

Source: NRCS News release 5/29/03

 
   
   
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