Volume 38, Number 17 | NOVEMBER 12, 2012
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PRACTICAL PRODUCTION TIPS FOR THE PRAIRIE FARMER
www.grainews.ca
Selling grain to U.S. buyers
Changes in western Canadian grain marketing have made it simpler for Prairie farmers to sell their grain south of the border. But that doesn’t mean it’s going to be easy BY ANGELA LOVELL
S
ince August 1, 2012 western Canadian farmers have had the freedom to sell their wheat and barley crops to any willing buyer. With a huge and hungry U.S. market to the south, made hungrier by drought-hit yields in some areas, farmers may be tempted to try and cash in on some higher prices by selling directly to U.S. buyers. But marketing wheat and barley is a little more complex than marketing other crops such as canola. There are transportation and customs considerations, as well as quality factors and enduse requirements, that may entail some advanced planning. “Growers now have to figure out what to do with their wheat crop,” says Mark Lepp, owner of FarmLink Marketing Solutions. “Currently wheat basis levels are extremely wide but most farmers are not used to marketing their wheat in this environment. If they’re trying to sell spot wheat into this market, they’ll soon realize that marketing wheat will require some strategic planning going forward, because the open market is quite a bit different than what we had before.”
CROSSING THE BORDER It’s not as if grain hasn’t been going down to U.S. buyers in the past, although most to date has gone through grain brokers. But farmers now have the option of calling around themselves to U.S. elevators, grain companies or endusers, such as millers, to see where they can get the best deal. Some farmers are reluctant to go it alone because of the perception that crossing the border into the U.S. can be a huge hassle, although it’s not necessarily an accurate perception. “I’ve had some clients who have shipped corn, rye and wheat down to the U.S. this year,” says Brian Voth, a senior market coach with
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Prairie farmers may be tempted to try and cash in on some higher prices by selling directly to U.S. buyers. Agri-Trend. “The wheat was obviously new this year; we haven’t been able to do that before. But none of it was a big issue because they had it picked up here so they didn’t have to worry about the paperwork involved in crossing the border. But we do also have clients who are hauling grain down there themselves and taking care of the paperwork too and they’ve said that it’s not a big deal.” In some cases the buyer will arrange for all the necessary documentation, but it’s probably still a good idea to research requirements for shipments ahead of time. For example, the necessary customs paperwork includes a prior notification (PN) number for each shipment entering the U.S. — the PN must be obtained before arrival at the border crossing. Voth advises farmers to be aware of transportation costs and make
sure it’s really worthwhile shipping into the U.S. “They have to work out freight rates down and back,” he says. “The price has to be quite a bit better than what you can get locally to make up any freight differential.” To enter the U.S., Canadian farmers and commercial truck drivers require a valid driver’s licence for the vehicle they are operating and all drivers and passengers need a passport or Free and Secure Trade (FAST) identity card. Vehicles must have valid insurance issued in Canada. Regulations about vehicle licensing requirements and weight and size restrictions for loads may vary according to state — it’s best to check with the U.S. Department of Transportation (USDOT) website (find it at www.dot.gov). Canadian commercial truck drivers are subject to drug and
alcohol testing through the USDOT, but farmers are exempt from drug and alcohol testing as long as they are operating their own vehicle within 150 miles of their farm. Presumably they are subject to testing if they exceed the maximum distance allowable, and if a farmer employs farm personnel to operate his or her farmplated vehicles, the same rules apply to the employed person as the farmer. To be certain, farmers should check the rules and requirements with the USDOT before making the trip.
WHEAT GRADING Wheat is graded differently in the U.S. than in Canada. In the U.S., grading is generally done by a third party, independent of the buyer. When a grain truck arrives at a U.S. elevator a grain sample
In This Issue
is taken to test for dockage, test weight, moisture and protein. Other tests may include a DON (deoxynivalenol, or vomitoxin) or falling numbers test, especially if conditions have been conducive to sprouting. If there are concerns about a specific shipment, samples may be sent to a grain inspection agency licensed by the United States Department of Agriculture’s (USDA’s) Federal Grain Inspection Service. Any associated fees may be the responsibility of the farmer delivering the grain. Canadian farmers should become familiar with their rights and obligations under state laws regarding grade determination — these laws can vary from state to state. There are also differences in the reporting of test results for wheat.
» CONTINUED ON PAGE 4
Wheat & Chaff ..................
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Features ............................
5
Crop Advisor’s Casebook
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Columns ........................... 20 Machinery & Shop ............ 29 Cattleman’s Corner .......... 43
Machinery: focus on Fendt
SCOTT GARVEY PAGE 29
CANADA’S OUTSTANDING YOUNG FARMERS LEE HART PAGE 36
FarmLife ............................ 51
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NOVEMBER 12, 2012
Wheat & Chaff LEEANN MINOGUE
“Yes, we’d love to come to your barbecue! But only if it’s raining.” “What? We were supposed to RSVP? Well, we’re here now! And there’s always room for one more at a wedding, right?” If you’ve found yourself saying one of those lines or something like them, maybe you’re a farmer. (Or at least married to one.)
COMMITMENT PHOBIA
“And of course with this part comes a complete first aid kit for Elmo.”
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Our farmer friends get it. Most of them don’t even bother inviting us to events that take place in May, August or September. At least not if they’re going to need us to decide in advance if we can make it or not. Even in July, if you call farmer friends to cancel a get-together at the last minute, as soon as you mumble a sentence that includes the word “sprayer,” they’ll generally understand right away. Best of all, they’re more likely to be sympathetic than angry. They’ve been there. Farm work has to be done at the right time. That’s all there is to it. A large part of our annual income could hinge on spraying at just the right day in July. If the canola is ready to swath, it’s ready to swath — canola doesn’t care if all of our friends are going camping, or someone planned a family reunion. As much as farm spouses might complain about this fact of life, I can’t imagine anybody really wants to be married to someone who wants to go fishing with his friends in the middle of harvest. If every farmer only had other farmers as friends and relatives, things would be just fine. We could all hold last-minute, weather-dependent get-togethers in the summer, and save anything that needs advance planning for the coldest winter months. But, occasionally, we find ourselves having to mix with the outside world. This can be socially awkward. Not just because we have a habit of talking about the weather for hours on end. But because it’s so hard for us to commit to anything that involves actually leaving the farm for more than a few hours. Non-farmers just don’t know how much anxiety they cause when they call us in the middle of May and ask us if we’re going to want to go to the lake with them on the September long weekend. I lived in the city before I married my husband and moved to his farm. My city friends still invite us to occasional events. Sometimes these events are planned for summer, when it’s pretty likely that we’re not going to be able to make it
to Regina. Usually, our friends want us to commit in advance. Not that they’re nosy, or bossy. It’s generally just a matter of practicality. People who organize a group event need to know how many tickets to buy, how many meals to order or how many canoes to rent. There are a few possible strategies for dealing with this problem.
1. JUST SAY YES If you’re invited to an event you really want to go to, just saying you’ll be there can work. Heck, maybe it will turn out that at least one of you will be able to go. When it comes time to get in the car and actually leave the farm for the event, if it works out you just can’t do it, and the friend who invited you is the type that won’t understand how swathing flax could possibly take priority over her formal wedding, you can always make something up. “Really! Diphtheria is going around out here like crazy! We sure don’t want to spread it to your family.” If you go with this strategy, try these tips. • It’s best to save this one for events that are in July (or whatever summer month you’re most likely to be able to get away from your farm operation.) It’s really not fair to use this one in mid-August, when it’s highly unlikely you’re going to show up. • Try not to use it for events that have cost the hosts a lot of money. The more expensive that plate of roast chicken you’re not eating, the longer they’re likely to hold the grudge. • If both spouses are too busy at the farm to make the party, it’s really not OK to drop off your small children at the party in your place. (Unless the hosts are very good friends.) • If only one of you can go, read the crowd before telling anyone why you’re there on your own. In some groups, lots of people will understand “Jim’s in the combine.” In other circles, if the truth is “Jim had to fix the grain cart,” telling the truth will not make you popular. In those cases, consider making up something that they’ll find less offensive, something that will be more likely to keep you on the guest list for future events. Something less socially damaging, like, “Jim’s having an affair with the neighbour’s wife.” • If only one of you can go, and it’s a camping trip, you might want to practise setting up the tent on your own before the trip. Trust me.
2. PLEAD IGNORANCE Or, as I like to call it, “invitation evasion.” Who hasn’t done this? The longer you wait to respond, the better your odds of knowing for sure whether you’ll be able to attend or not. If it’s an informal event, people
won’t care. If they even notice. Especially if you bring something. Pretending not to have known that you were supposed to RSVP to an event can definitely work. But, just so you know, you’ll only try this strategy for formal weddings at the Glencoe Club in downtown Calgary once. The whole experience will be a mortifying fiasco involving horrified staff, evil glares from the bride’s mother and last-second chairs at the kids’ table at the back. (Don’t ask how I know.) If this strategy should backfire, your best hope for finding sympathy is to find a chair next to a single friend who’s just started dating — someone at that confusing stage of the relationship where it’s too soon to know if you’ll be going to the next wedding on your own, or if you should write in that “two” will be attending when you reply to the invitation.
3. JUST SAY NO There are always those people who really, really need to have all the minor details — like how many people are coming — before they can plan any event, whether it’s a formal anniversary dinner or an outdoor bonfire. (You know who you are.) If one of these people invites you to something in an iffy time of year, do everyone a favour, and just say no. Especially if it’s the kind of event where planners really do need an accurate head count. It’s entirely possible that you’ll find yourself home on the farm on a rainy August weekend while everyone else you know is living it up at the Radisson. Really, there are worse worst-case scenarios. And an evening at home watching movies with your spouse can beat being left off the guest list for years to come.
THAT’S OUTSTANDING It’s that time of year again. Read about Canada’s Outstanding Young Farmers on pages 36 to 42 of this issue. Seven young farm families from B.C. to Atlantic Canada involved in everything from organics to wine are profiled in this issue. As you read these success stories, you’re sure to find something to motivate you to take that next step on your farm. This issue features grain marketing. On the front page and on to page four, Angela Lovell has written about selling grain into the U.S. in this new marketing environment. Lots of market advisers tell you to get into the futures and options market. In this very magazine, last spring, market adviser Neil Blue suggested that farmers buy put options to set a floor price for their crop. In this issue, Neil Blue boldly goes back to look at that recommendation and how it would have turned out in the real world. Find that on page 12. I hope you enjoy this issue. † Leeann
NOVEMBER 12, 2012
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Wheat & Chaff Farm safety
Seed technology
Shopping for safety Dicamba-tolerant soybeans
T
he crop is in, it’s getting colder by the day, and you may feel more like hibernating for the winter than shopping for farm machinery. But consider setting your slippers aside and pulling on your Sorels — it could be time to replace some equipment and you need to know what to look for from a safety perspective. While machinery standards in North America are developed to help make equipment safer, farm machinery constitutes one of the few products that can be imported into North America without meeting a CSA or equivalent design standard. That places the onus on the consumer to do the research. Let’s say you are shopping for a tractor or a skid-steer loader. Don’t be lured by a great price and a long product description that may include some safety features. Make sure the equipment you are interested in has a Canadian Standards Association (CSA) or equivalent ROPS (rollover protection system) in place. ROPS is a metal, upside-down u-shaped frame that fits over the operating stations of tractors and skid-steer loaders. When operators drive tractors outfitted with a proper ROPS and wear seatbelts, the system is approximately 99 per cent effective in preventing rollover-related injuries or death. While Most North American manufacturers voluntarily comply with CSA standards for ROPS, that can’t be said of all manufacturers. So how do you know? Inspect the device. Does it have a nameplate on the rollover structure? If so, that nameplate should include the make and model of the tractor or skid-steer as well as a reference to the standard to which the structure was built. If it doesn’t, or if you can’t find a nameplate, then in all probability the manufacturer did not build that rollover structure to any standard and there is no guarantee that it will protect you in the event of a rollover. Has your PTO shield seen better days? It might be time to
replace it. If you want matching equipment, bring your machine serial number and model number to your nearest ag retailer and you can purchase the shield originally designed for your equipment for between $140 to $180. If you’re looking to save a bit of money, a parts dealer can provide you with a generic shield for $80 to $100. Just make sure to measure the length of the existing guard and the diameter of the grooves on the shaft for the bushings. The fit might not be exact but it will do the job of protecting you and your workers from serious entanglement injuries. Not sure the lighting on your agricultural equipment is up to the task of travelling down a busy highway? Consider purchasing a lighting kit. The introduction of LED and wireless lighting kit options makes installation less invasive and straightforward. Just make sure the lights you purchase will flash in synchrony with the lights on your tractor or truck. This will help ensure an approaching motorist understands that both machines should be treated as one moving unit. And make sure to check with your provincial Transportation Department to see if your province has any particular lighting requirements. Motor vehicle collisions trail just behind entanglements when it comes to major causes of fatal agricultural injuries, so the sooner you can properly outfit your equipment, the better. If you are responsible for replacing and upgrading farm equipment, make sure to do your research and shop for safety. The Canadian Agricultural Safety Association funds the standards creation work of the CSA as part of its larger mandate to reduce farm injuries. To find out about current agricultural standards, contact CASA or the Prairie Agricultural Machinery Institute. † From the Canadian Agricultural Safety Association — www.planfarmsafety.ca.
photo contest
GIVE US YOUR BEST SHOT Debbie Thiele sent us the winning photo for this issue. Debbie says, “Anyone for mud pie? Or a mud face? Grandchildren Landon and Halle Weber from Okotoks, Alta. are visiting Grandpa and Grandma (Randy and Debbie Theile) at their farm near Briercrest, Sask. and loving it. What Mom doesn’t know can’t hurt her! Nobody can pass up this much fun.” We are sending Debbie a cheque for $25. She’ll probably spend the money on soap. If you’d like to see your photo on this page and receive $25, send your best shot to
[email protected]. Please send only one or two photos at a time and include your name and address, the names of anyone in the photo, where the photo was taken and a bit about what was going on that day. A little write-up about your farm is welcome, too. Please ensure that images are of high resolution (one MB is preferred), and if the image includes a person, we need to be able to see their face clearly. — Leeann
M
onsanto’s dicamba-tolerant soybean product has received full food, feed and environmental release approval from Health Canada and the Canadian Food Inspection Agency (CFIA). The approval brings Monsanto Canada one step closer to introducing dicamba tolerance stacked with Monsanto’s existing Genuity Roundup Ready 2 Yield trait technology in soybeans. Plans are to commercially brand this biotech stacked soybean product as Genuity Roundup Ready 2 Xtend. Dicamba herbicide provides effective control of over 95 annual and biennial weed species and suppression of over 100 perennial broadleaf and woody species. The use of dicamba over Genuity Roundup Ready 2 Xtend would provide an additional mode of action not previously available to soybean farmers. Pending regulatory approval of all system components, the Roundup Ready Xtend Crop System is expected to be available in time for the 2014 growing season.
Combining dicamba and glyphosate tolerance in one product would give farmers the option of applying Roundup WeatherMAX herbicide and low-volatility formulations of dicamba, separately or as a tank mix. Monsanto is also developing next-generation glyphosate and lower-volatility dicamba formulations to complement the new crop system. “Our existing recommendations around sustainable weed management solutions in soybeans support the use of multiple modes of action as part of an integrated weed management strategy,” said Derek Freitag, Monsanto Canada’s technology development lead in Eastern Canada.” Populations of giant ragweed, common ragweed, and Canada fleabane have all been confirmed to have glyphosate resistance in Eastern Canada while glyphosate-resistant kochia has been confirmed in Western Canada. † www.monsanto.ca
Crop research
Future of flax
A
Canadian research project will allow flax breeders to more quickly and efficiently develop new varieties with improved production and quality characteristics.
“Eventually, those varieties could be tailored to specific highvalue markets,” says Chris Barker, Genome Prairie’s senior project manager for Total Utilization Flax GENomics, or TUFGEN.
The idea is to document the genetic makeup of the flax plant so that scientists, producers, processors and others will have a “road map” of characteristics to guide them in devel-
oping new varieties and products.
The $12-million project is working towards identifying all of the genes expressed by flax, along with the genetic differences among varieties. This knowledge is helping researchers to understand which genes are responsible for certain growth and production characteristics and what biochemical processes are at work when oil, protein or fibre are produced in a flax plant. The future opportunities are staggering. Flax is a dual-purpose crop in that it produces seeds — for food, feed and oil products — as well as fibre from the straw.
TUFGEN involves researchers from multiple institutions right across the country. “Canada is the world’s largest producer of flax, which places the onus on us to lead flax research and development,” Barker explains. “We’re quite excited about the opportunities this will lead to for growers,” said Linda Braun, executive director of the Saskatchewan Flax Development Commission, which represents over 7,600 flax producers in the province.
Barker agrees. “The project will allow farmers to improve returns per acre through increased seed yield for traditional markets and help create multiple niche, high-value products that can be derived from flax,” he says. † www.saskflax.com
Seed varieties
New wheat from Syngenta
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yngenta Canada Inc. will be bringing canola varieties to market for the 2014 growing season. Syngenta has already been involved in the Canadian canola industry with seed treatments, herbicides, fungicides and insecticides; abroad, Syngenta already provides canola-quality oilseed rape varieties. SY4135 will be the first canola
variety Syngenta brings to market, with commercial quantities available in fall 2013 for seeding in 2014. Future varieties will also be developed, offering strong yield and optimal weed control. Efforts in 2013 will focus on strategic trialling of new canola varieties at the field level. “Syngenta is very excited to continue the growth of our can-
ola portfolio. We look forward to bringing commercialization expertise and support to seed breeders while also delivering strong new canola varieties to growers who address their unique production needs,” concludes Duane Johnson, head of the western commercial unit for Syngenta Canada. † www.syngenta.com
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Cover Stories Grain marketing » CONTINUED FROM PAGE 1
Voth says that during the summer and fall, cash bids for wheat for fall delivery were higher in Canada than in the United States because U.S. farmers deliver most of their grain off the combine and don’t store as much grain on farm as Canadian farmers. Once January comes around Voth expects to see the reverse happening, with U.S. bids higher than Canadian prices. “It’s something that has worked out well for some of my clients who have sold canola down into the States,” says Voth. “The buyers there, when farmers go directly to a crushing plant, will tell us that they are not going to be competitive for Canadians between September and December, because they have far too much stuff coming in from U.S. farmers during that time frame. But once they get into January or later then they are going to be extremely aggressive trying to buy Canadian canola, because they know that Canadians have plenty left in storage. We have managed to get some really good deals by setting our delivery time frame anywhere from January to March.”
selling grain to u.s. buyers In Canada, protein for wheat is reported on a 13.5 per cent standard basis; in the U.S. wheat protein is reported on a 12 per cent standard basis. That can translate into some pricing issues, as companies offer premiums or discounts based on the protein content. This will be more transparent, but also more variable than Canadian farmers have experienced in the past. “Both here and in the States, now those protein premiums and discounts are set by each company individually,” says Voth. “Last year in Canada it wouldn’t have mattered which company you went to; the premiums and discounts were all the same because it was all done through the Canadian Wheat Board. That is one thing farmers will need to be watching out for. Depending on the area that you are selling into and the company, there may be different premiums or discounts in place depending on what the wheat was like in that area.” It’s a good idea to also bear in mind that U.S. prices are generally listed in U.S. dollars per bushel. The Canadian dollar is currently trading near par with the American dollar, but rates change.
Pooling for themselves Farmers should also have an opportunity to take direct advantage of economies of scale. “We got together a group of about six of my clients and sold 5,000 tonnes of canola direct to a crusher in the U.S. and ended up getting a better deal than if each of those producers had gone and sold their crop separately,” says Voth. “Companies are definitely willing to negotiate on volume and they are willing to give up a percentage of their margin to secure bigger amounts. I think you will see the
When to sell Timing is something else that may be more of a factor now than it was when farmers sold their wheat and barley into one large pool, especially if the experience of canola growers selling south is anything to go by.
1 6 6 6 D u b l i n Av e n u e , W i n n i p e g , MB R 3 H 0 H 1 w w w. g r a i n e w s . c a PUBLI SHER
Bob Willcox Associate Publisher/ Editorial director
John Morriss
Edito r
Leeann Minogue field Ed itor
Lisa Guenther Cattleman’s Corner Editor
Lee Hart Farmlife Ed it or
Sue Armstrong
Brian Voth of Agri-Trend (centre) talks to farmers about grain marketing.
Machinery EDITOR
Scott Garvey Production Di rec tor
same thing happening with wheat and barley buyers both in the U.S. and here in Canada.” Some in the industry suspect that localized, farmer-directed initiatives like this may become more prevalent, both for selling grain direct into the U.S. and for moving grain through short line railways. That said, arrangements that allow for grain shipments to be either picked up from the farm by the buyer or trucked directly to the end-user could accumulate some significant cost savings for both sellers and buyers in elevator fees alone. “By engaging in a direct purchase agreement you could potentially save elevator fees for unloading and dockage and those sort of things on both sides of the equation,” says Brennan Turner, who recently launched FarmLead. com, an online marketplace that connects grain sellers direct with buyers. “If you were to use our system to find a direct sale, a per-
centage of those savings can both go to the farmer and also come off the bottom line of the buyer.” Voth is confident that the transparency of an open market and the increased competition will help many farmers take advantage of new opportunities and maximize the profits on their grain. “We have never had a real picture of world wheat values in Western Canada,” says Voth. “Farming is the only occupation where the manufacturer is a pricetaker. In every other industry I can think of the person who is producing something is the one who sets the price, and yet with farmers it’s the elevators or the crushers that are setting the price and the farmers have to decide whether they are taking it or not. So the more competitors there are to buy the crop the better it is.” † Angela Lovell is a freelance writer, editor and communications specialist living and working in Manitoba. Find her online at www.angelalovell.ca.
Shawna Gibson Designe r
Steven Cote MARKETING / CIR CULATION D irec tor
Lynda Tityk
Ci rcul ation manage r
Heather Anderson H e ad O f f i c e 1666 Dublin Avenue, Winnipeg, Man. R3H 0H1 Phone: (204) 944-5567 Fax: (204) 944-5562 Adve rti sin g Sa les
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EXTENDED OUTLOOK FOR THE PRAIRIES Weather Forecast for the period of December 2 to December 29, 2012
Southern Alberta
Peace River Region December 2 - 8 Cold throughout, but milder surges bring snow on 2 or 3 occasions. Blustery. December 9 - 15 Seasonal with a possibility of Chinooks in the south. Windy outbreaks will bring some snow. December 16 - 22 Cold and fair, but a couple of milder days with brisk winds will bring snow and drifting. December 23 - 29 Unsettled at times with changeable weather. Some snow and drifting is expected in the south. Higher windchills are forecast for this period.
Saskatchewan
December 2 - 8 Cold throughout, but milder surges in southern areas bring snow on 2 or 3 occasions. Blustery.
December 2 - 8 Fair overall apart from a couple of stormy days with snow and blowing. Variable temperatures.
December 2 - 8 Temperatures on the cold side, with fair skies, but look for a couple of milder, snowy days and brisk winds.
December 9 - 15 Seasonal with a possibility of Chinooks in the south. Colder, windy outbreaks will bring some snow.
December 9 - 15 Fair with normal to milder temperatures. Scattered snow, with a chance of heavy snow in a few areas.
December 9 - 15 Fair with seasonal to mild temperatures, but a disturbance brings snow and gusty winds on 1 or 2 days.
December 16 - 22 Cold and fair, but a couple of milder, windy days in the south will bring snow and drifting.
December 16 - 22 Expect snow on a couple of days, interspersed with clear, colder days and higher windchills.
December 16 - 22 Fair and mild days interchange with colder snowy ones. Blustery at times with higher windchills.
December 23 - 29 Unsettled on 2 or 3 days with snow and blowing, otherwise fair with seasonal temperatures.
December 23 - 29 Fair overall but unsettled on a couple of days with snow and gusty winds. Variable temperatures.
December 23 - 29 Unsettled at times with changeable weather. Some snow and drifting in the south. Higher windchills are forecast for this period.
-19 / -8 Grande Prairie 26.9 mms
ABOVE NORMAL
Precipitation Forecast -18 / -7 Edmonton 22.2 mms
-20 / -10 North Battleford
-14 / -6 Jasper
26.8 mms
-14 / -5
34.6 mms
Banff
-14 / -2 Calgary
Forecasts should be 80% accurate, but expect variations by a day or two because of changeable speed of weather systems.
Manitoba
13.2 mms
-18 / -6 Red Deer 18.8 mms
BELOW NORMAL
-14 / -3 Medicine Hat cms Lethbridge 16.219mms 20.1 mms 26 cms -13 / -1
-22 / -11 Prince Albert 19.1 mms
19.0 mms
-19 / -9 Saskatoon
NEAR NORMAL
-20 / -10 Yorkton -18 / -8 21.0 mms Regina
17.2 mms
-23 / -14 The Pas
-20 / -10 Dauphin
-17 / -6 -16 / -6 Moose Jaw 15.9 mms Swift 18.8 mms Current -16 / -7 21.5 mms Weyburn 19.0 mms -16 / -6 Estevan 18.1 mms
20.5 mms
Much Above Normal Below Much above normal normal below normal normal
-20 / -10 Gimli
26.2 mms
-19 / -9 -20 / -10 Portage -19 / -10 Brandon 22.2 mms Winnipeg 18.9 mms
Melita -19 / -7
19.7 mms
18.6 mms
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Precipitation Outlook For December
22.0 mms
We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.
Temperatures are normals for December 15th averaged over 30 years. Precipitation (water equivalent) normals for Dec. in mms. ©2012 WeatherTec Services Inc. www.weathertec.mb.ca
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The editors and journalists who write, contribute and provide opinions to Grainews and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis. However, the editors, journalists and Grainews and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as Grainews and Farm Business Communications assume no responsibility for any actions or decisions taken by any reader for this publication based on any and all information provided.
NOVEMBER 12, 2012
grainews.ca /
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Features GRAIN MARKETING
New online grain marketing resource Farmlead.com provides a simple way for grain sellers and buyers to find each other BY ANGELA LOVELL
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here is a new alternative for Western Canadian farmers looking for new markets for their grain. Farmlead.com promises to help facilitate connections between buyers and sellers. Farmlead.com is the brainchild of Brennan Turner, who based its design on similar programs currently being used successfully in Australia. The online resource allows buyers and sellers of a large range of agricultural commodities — not just wheat and barley — to find each other and make a deal. It’s not something that has traditionally been an easy thing to do. “It’s an equal playing field now and everyone has the option to market themselves and it’s a matter of finding the most ideal counterparty to get the right products or price,” says Turner. “But a guy that lives across the border in North Dakota is not necessarily going to know that a guy in Richler, Manitoba has the feed barley that he’s looking for. There’s an obvious disconnect there.” Brennan seeks to bridge that disconnect with an innovative platform that allows individual farmers to market products to a large group of buyers and sellers, simply by posting on the Farmlead.com online marketplace. Similarly, buyers post what they are looking for. The idea is to connect the two when there is a match in requirements. “ T h e r e ’s n o r e s t r i c t i o n through us of who you can market your grain to,” says Turner. “We have contacted over 160 buyer groups within Western Canada and the Northern U.S. states, and there are companies that are aware of our program and have signed up to use it. And we have also made presentations about the system to around twenty producer organisations. We are trying to alleviate the disconnect between buyers and sellers.” The Alberta Wheat Commission has endorsed the Farmlead.com program and buyers and sellers are beginning to sign up, although Turner admits it’s early days. Farmlead.com launched its buyer platform in early October and its seller platform three weeks earlier.
posting what they are looking to purchase, including details about grade, quantities and other factors. Farmlead.com does credit checks on all buyers to try and ensure that they are credible. It also advises farmers to test a sample of the grain they are offering (which Farmlead.com will verify), so buyers know that the posted information about a specific product is accurate. A ratings system designed to indicate which buyers and sellers are
the most reputable has been built into the program. If a buyer sees that a farmer has exactly what he is looking for, he can contact that farmer to negotiate price, quantity and transportation options. There is no subscription cost or sign up fee to register and post on the Farmlead.com marketplace. Instead, a flat-rate connection fee is charged only when a connection is made between buyer and seller. The fee ranges between $45 and $100 depend-
These screenshot comes from www.farmlead.com. ing on the commodity. Once the fee is paid, contact information is provided to both parties so they can directly negotiate their own purchase agreement. “We do not guarantee a sale,” says Turner. “What we do is facilitate the contact between two interested parties. It’s still up to the buyer and seller to come to an agreement. But we
try to put as much power into the hands of the user as possible in terms of how they can market their grain. This is a risk free alternative to allow for more efficiency, transparency and competitiveness.” † Angela Lovell is a freelance writer, editor and communications specialist living and working in Manitoba. aFind her online at www.angelalovell.ca.
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HOW IT WORKS For farmers wanting to use Farmlead.com, the first step is to register on the site and indicate what commodity they have available for sale. The site offers a selection of around 83 different commodities. Then, farmers enter relevant information (location, moisture content, grade, and delivery preferences) and post an offer. Buyers go through the same process — registering, then
For more information contact your retailer, call 1-87-SYNGENTA (1-877-964-3682) or visit SyngentaFarm.ca Always read and follow label directions. The Alliance Frame, the Purpose Icon and the Syngenta logo are trademarks of a Syngenta Group Company. © 2012 Syngenta Canada Inc.
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NOVEMBER 12, 2012
Features GRAIN MARKETING
Tips for using a broker Some farmers selling to the U.S. prefer to use a broker, others go it alone. Try these tips to help with both of these approaches BY ANGELA LOVELL
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hether you choose to go with an established grain broker or try to sell direct to a U.S. buyer, there are a few things it’s probably best to know in advance as you develop a successful marketing strategy for your wheat and barley.
3 BASIC TIPS First, a few basic tips for farmers considering selling grain into the U.S.: 1. Export licenses are no longer needed to export wheat, durum or barley from Canada. 2. It’s a good idea to call the U.S. delivery point or elevator company in advance, to get the necessary information to conclude a commercial transaction. 3. Information about importing agricultural products into the U.S., including allowable pesticide residues, food labeling and standards, sanitary and phytosanitary requirements, acceptable food additives, and certification and testing requirements can be found at the U.S. Department of Agriculture’s (USDA’s) Foreign Agricultural Survey website.
DIRECT MARKETING If you’ve decided not to use a broker, here are some basic tips to help you cut through the red tape on your own. 1. Some sources of contact information for U.S. grain elevators include state websites, trade association websites, private company websites, telephone and local business directories. 2. Most U.S. states require grain buyers to be licensed. Each state licensing authority maintains lists of licensed businesses. These state authorities can be an excellent source of information. 3. U.S. grain buyers are either privately owned companies or farmer-owned cooperatives. 4. A local grain broker is a good place to start if you want current
price information, but there are also other sources. Many U.S. state websites and commodity advisory services also provide price indicators. It really pays to do some research and shop around to get an idea of where you can get the best price. 5. If you’re selling grain to a U.S. facility you should always obtain and confirm the actual, contractible price directly from the grain company. In many cases grain
ers on every trade, otherwise they take their business elsewhere.”
CHOOSING A GRAIN BROKER When choosing a grain broker, the first thing to make sure of is that the company has knowledgeable people on staff who fully understand the farming industry. “Almost all our grain merchants grew up on a farm or are still actively involved in their family’s
“Every grain broker brings their own set of skills and attributes to the table” — Bobby Leavins
company websites display current price indications, but these are not necessarily the actual prices paid or contracted.
GRAIN BROKERS Generally, anyone who deals in or handles grain grown in Western Canada must be licensed by the Canadian Grain Commission (CGC). There are five different classes of licences. Most grain brokers will have a grain dealer’s licence which allows them to carry on business as a grain dealer, defined as a “person, who for reward, on their own behalf or on behalf of another person, deals in or handles western grain.” For more details on licensing and exemptions check out the CGC website. It also lists companies licensed by the CGC to deal or handle grain. “Each country has their own set of rules and regulations that brokers need to follow. And every grain broker brings their own set of skills and attributes to the table,” says Bobby Leavins of Rayglen Commodities Inc. at Saskatoon. “Brokers usually don’t own a lot of hard assets so they have to perform for both buyers and sell-
operation, so they know the highs and lows that can be experienced within the industry,” says Leavins. “They are well-educated and highly motivated.” Some farmers may be having success selling their cereal grains directly into the U.S., but most are looking for someone who can assist them to make those trades. Brokers keep abreast of what is happening in the industry. “Our staff talks to dozens of cash buyers as well as trend and technical traders every day,” says Leavins. “They help us understand what has happened previously in the market, where it is at and hopefully some direction on where it is going.” A good broker will also perform due diligence to make sure you will be selling your grain to someone reputable. “With grain buyers, our criteria includes a financial component,” says Leavins. “We don’t just jump into business with a buyer client overnight. We have some very financial and ethical criteria that our buyers have to meet. We have an administration staff that keeps an eye on buyer capabilities, coupled with the trading group keeping their ears to the ground about who may be in trouble, so we can be on top of
any potential issues. Rayglen is very proud of the group of growers and buyers that we currently work with.” Rayglen, as an example of a broker, has created working relationships with strong U.S. companies that not only have a presence in the U.S. states bordering Canada but also have operations throughout the continental U.S. “The important thing is to associate yourself with someone who has done their homework and has had experience dealing in the U.S. in the past,” says Leavins. Crossing the border can be a frustrating and confusing process, especially the first time a farmer tries going it alone, and the expertise of a broker can certainly make it a lot less painless. Farmers also need to remember that the U.S grading system is not the same as Canada’s. “Before you start up the truck to head south make sure that you know the grading specifications for your grain and have all your bases covered,” advises Leavins. Another advantage of going through a broker is that brokers maintain an unbiased approach and provide knowledge for their growers to help them achieve the best price when they do decide to sell. “We always encourage growers to look around and compare what we’re offering to what is available,” says Leavins. “Often if there is an opportunity out there with a company that we don’t deal with we will let the grower know that there may be a better option for them.” Possibly one of the biggest attractions of a broker for most farmers is the time saved. Few farmers have the time to study the markets each day and stay on top of what is going on in the industry. That’s exactly the role of a broker. “We are a tool in the growers’ toolbox that does not get used every single time but is a very important part of their business,” says Leavins. † Angela Lovell is a freelance writer, editor and communications specialist living and working in Manitoba. Find her online at www.angelalovell.ca.
More information
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here are several sources of information for farmers planning to sell grain to the U.S.
TRADE INFORMATION For more information about selling grain to the U.S. visit Canada-U.S. Grain and Seed Trade Info at www. canada-usgrainandseedtrade. info. You’ll easily find the link labelled “Canadian grain producer” at the bottom of the page. This website was developed through the U.S. Grain and Seed Trade Task Group, a group that includes many trade and farmer associations. Funding for the site comes from collaboration and voluntary contributions from many individuals and organizations in the public and private section on both sides of the border.
U.S. GOVERNMENT The U.S. Department of Agriculture’s (USDA’s) Foreign Agricultural Service has information about importing. Find it at www. fas.usda.gov/importprograms.asp.
CANADIAN GRAIN COMMISSION The Canadian Grain Commission’s (CGC’s) website includes information about classes of licensing and license exemptions. At www.grainscanada.gc.ca select “English,” then, on the left side of the page, choose “licensees.” † Angela Lovell
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Get the advantage of outstanding yield potential with Genuity® Roundup Ready® systems. in field scale trials conducted by Monsanto, a number of Genuity® Roundup Ready® hybrids yielded on par with inVigor® libertylink® hybrids.* www.genuitycanola.ca
*Monsanto Field Scale trials conducted in 2010 and 2011. Always follow grain marketing and all other stewardship practices and pesticide label directions. Details of these requirements can be found in the Trait Stewardship Responsibilities Notice to Farmers printed in this publication. InVigor® and LibertyLink® are registered trademarks of Bayer. © 2012 Monsanto Canada, Inc.
NOVEMBER 12, 2012
grainews.ca /
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Features GRAIN MARKETING
Specialty programs — comparing apples to apples Growing a special crop under contract may be a good option for your farm. But first, consider these seven factors
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o you have finished your harvest, or are just about to. Time for a wellearned breather. Done? Good. Because the seed reps are already out and about to get you thinking about next year. This year you’ll find many reps are recommending specialty canola under contract with one buyer. These programs usually offer premiums, and can be a really good option. But they’re not the best choice for every farmer. Signing a contract with one buyer means you’re effectively conceding the ability to adapt to changing market conditions later on. Is the premium on offer worth it? Here are seven factors to consider.
to be accepted. Failure to make the grade can result in discounting or outright rejection. Many growers forget to consider this when assessing the risk involved with a given contract.
can mean a $30 per acre loss when compared to commodity canola. Will the premium offered make up for any yield penalty? It’s very important to crunch the numbers before committing.
6. YIELD POTENTIAL With grain prices at historic highs, analyzing the agronomics of each variety has never been so important to your bottom line. This is why a specialty variety’s yield potential must be considered before committing to it. The premium offered on a specialty crop can easily be swallowed up by even a slightly lower yield. At today’s high commodity prices, a two bushel per acre yield penalty
Ask your seed reps lots of questions 7. PERFORMANCE PREDICTABILITY If the variety in question is an unfamiliar one, and particularly
if the variety is new, find out as much about the variety as you can. Whatever you learn, it might be a good idea to start out with a small production contract. Bigger commitments can always be made the following year if you like the performance and reliability of the variety.
when you’re already committed to only one competitor. Each situation is going to be different and each farm will have different reasons for choosing one way or the other. Careful consideration of the above factors before signing a contract is crucial. Ask your seed reps lots of questions, and make sure your calculator is close at hand while weighing your options. †
THE DECISION So is a specialty program right for your operation? Specialty canola programs can be a great way to capture some additional premium, but they also tie your hands when it comes to true market freedom — having the ability to adapt to changing market conditions is harder to do
Mike Davey is a market analyst with FarmLink Marketing Solutions. FarmLink provides expert grain marketing advice and consulting in Western Canada, including analytical expertise, tailored planning, and comprehensive sales advice for grains, oilseeds, pulses and specialty crops. Contact FarmLink by email: info@ farmlinksolutions.ca, by phone: 1-877-FRM-LINK (1-877-376-5465) or find them online at www. farmlinksolutions.ca.
5525 CL Crushes NeXerA 2012 CL
1. MOVEMENT FACTORS Many specialty programs take away a farmer’s ability to choose when to move his or her harvest. This can be a liability depending on your cash flow situation. In recent years movement has been faster due to high demand. But if you’re looking to move your crop early in the fall it’s important to inquire about a buyer’s typical movement rates.
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2. FREIGHT COSTS
Better yield, Better net and complete marketing flexiBility
Contracts differ in how they work the cost of freight into the agreement. Some buyers will pick up the crop on the farm. Others require delivery to elevator or crush facility points. If you’re expected to pay the freight on any delivery required, how much will this eat into the premium you’re offered? Here again, crunching the numbers is crucial.
5525 CL is a yield-leading variety in all canola production systems, delivering outstanding net returns while you retain complete marketing flexibility. Head-to-head in the 2011 Canola Performance Trials mid-season zone, 5525 CL out-yielded Nexera® 2012 by an average of 8 bu/ac1. The result: $50.361 per acre more in farmers’ pockets even after specialty oil premiums. With the freedom to market 5525 CL anywhere, and high net returns, 5525 CL crushes the competition. In the end, it all comes down to performance and BrettYoung brings a new standard of excellence to the field.
3. ACTS OF GOD
CANOLA PERFORMANCE TRIALS 2 2011 75
60
Average Yield
BY MIKE DAVEY
58 bu/acre 50 bu/acre
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Ideally, all specialty programs would include an Act of God clause. Not all of them do, but some will insert one upon request. Either way, it’s important to be aware of any risk involved with growing a specialty variety for one buyer.
0 5525 CL 2012 CL 2
4. PRODUCTION LIMITS
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Some contracts set a limit on the number of output per acre the buyer is obligated to purchase. Often the buyer will be prepared to purchase grain produced above the production limit, but not at the premium offered in the contract. Be sure to research whether production limits will be set, and consider whether any surplus production can be sold elsewhere, and for how much.
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Data from 2011 Canola Performance Trials – medium season zone.
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5. PRODUCTION SPECIFICATIONS Research the quality specifications outlined in the contract. With specialty contracts, there is often a minimum oil content the variety may have to demonstrate in order for it
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BrettYoung is a trademark of BrettYoung seeds Limited. Ares is a trademark and Clearfield and the unique Clearfield symbol are registered trademarks of BAsF Agrochemical Products B.V. All used with permission by BAsF Canada Inc. All others are trademarks of their respective companies. 12026 10.12 1 Based on 2012 Nexera oil premiums and 2012 sr Ps on the seed. For complete details on the trials visit www.canolaperformancetrials.ca
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NOVEMBER 12, 2012
Features CROP PRODUCTION
The future of flax Flax acres were up in 2012. With breeding programs focused on higher-yielding varieties, more flax might fit in your future rotations BY LISA GUENTHER
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FLAX DESTINATIONS
Produced by: Salford Farm Machinery Product/Campaign Name: Brand - Tillage Date Produced: October 2012
Ad Number: SFM10_04-8.125x10PSO Publication: Grainews Trim - 8.125” x 10” Non-Bleed
his year Canadian Right now most of Canada’s flax farmers seeded over goes to the industrial market, where one million flax acres, it’s used in linoleum, paint, and well above the 695,000 printing ink. Traits such as high acres planted last year, accord- omega-3 and fibre content make ing to Agriculture and Agri-Food flax a desired food additive, too. Canada. “We’re still probably about 75 per “In terms of the market, I cent industrial use for flax, but the think we could easily support 25 per cent of the food market is the a two or three time growth in fastest growing part,” says Hill. acreage before we would bump Most varieties can be used for up against severe problems in the food and industrial markets. the marketplace,” says Will Hill, Golden varieties are used more in SFM10_04-8.125x10PSO_GN.qxd 1 president of the Flax Council of 10/1/12 the food 12:33 market,PM HillPage says, because Canada. consumers like the lighter colour.
But the varieties with golden seed have the same properties as those with brown seed. In 2008-09 Europe imported 80 per cent of Canada’s flaxseed, according to the Canadian Grain Commission. Since traces of Triffid, the deregistered genetically modified variety, were found in shipments, Canada’s exports to Europe have dropped drastically. Hill estimates Europe will buy less than five per cent of this year’s crop. Canadian flax is now testing at practically zero for genetically modified flax, Hill says. Since Triffid curtailed exports
to Europe, China and the United States have picked up the slack. China uses flax oil for industrial purposes and as a blended food oil. Hill says China’s consumers are just starting to look at flax as an omega-3 source. India is also a potential market. Though the country grows a substantial amount of its own flax and tends to put tariffs on imported oil, Hill says awareness of flax’s health benefits are growing there, too. “We’ll likely see them, over time, develop that market and probably have a need for imports,” says Hill. Dr. Mike Deyholos is a researcher with the Total Utilization Flax Genetics project. Deyholos and his colleagues recently sequenced the flax genome. Deyholos is also working with the Europeans on using flax fiber for composites. Deyholos says there is interest in using flax in fiberglass. Flax fibre composites can also be used in products such as bicycle frames. Deyholos says researchers still need to work out
the precise characteristics needed for ideal fibre composites before variety work can begin. “But (with) broader use in car body parts and things like that, there is a little bit of a chicken and egg problem… no one really wants to invest in it until they know there’s a reliable supply. And no one wants to develop a reliable supply until they know there’s a market.”
BETTER VARIETIES NEEDED Before flax acres can grow, flax breeders need to develop better varieties. “Our primary challenge on flax is yield. It just hasn’t kept up with canola and even some of the cereals in terms of yield… we’ve always relied on price to get the acreage in the ground, and with other suppliers supplying Europe, we really have to improve the agronomic performance of flax,” says Hill. Hill says flax breeding programs are focusing on higher yielding varieties. The existing CDC varieties are also being rebuilt to make sure they’re Triffid-free, and Hill says they’ll be available in 2014. The Flax Council is also working with Cibus Global to develop a non-transgenic, glyphosate-tolerant variety to improve weed control. Hill hopes to see the glyphosate-tolerant variety rolled out by 2017, if all goes well. Flax breeders can also speed up traditional plant breeding methods by using the flax genome.
“Our primary challenge on flax is yield” — Will Hill
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“Having the flax genome allows us to make up a lot of time in doing a couple things. One is getting a really good genetic map so we can find molecular markers that are associated with some of the traits and different kinds of elite germplasm and combine them. That’s probably the fastest route to variety improvement,” says Deyholos. Breeders can also generate random mutations, map the mutations, and then find plants that contain desirable mutations. The right agronomic practices can help boost yield, too. Seeding flax into canola stubble drops yields, and adding more phosphorus won’t help. Though flax isn’t as affected by bad fall weather as some other crops, Hill says seeding late robs yield. Tests done in Manitoba show that flax seeded on June 20 yields 52 per cent less than earlyseeded flax. Newly emerged flax plants can withstand temperatures as low as -3 C, so early seeding is usually the best option. Hill sees several agronomic benefits to including flax in a rotation. Flax tends to be low input, making it a low risk crop. It yields very well following wheat, and it could also help farmers lengthen rotations, reducing herbicide and pesticide problems. “I think we really have to get the flax yield up. And if we could accomplish that, then I think flax would fit very, very well into the rotation as an alternative oilseed,” says Hill. † Lisa Guenther is a field editor with Grainews based at Livelong, Sask. Contact her at Lisa.
[email protected].
NOVEMBER 12, 2012
grainews.ca /
9
Features Herbicides
Timing glyphosate application Know when the weeds in your fields will be easiest to kill
Pre-harvest application Perennial weeds visible above and in the crop canopy are primary targets for a pre-harvest glyphosate application. Prior to harvest, short days and cooling temperatures signal perennial weeds to start building root reserves. Glyphosate is a systemic herbicide — it translocates right to the roots where it is most effective. Don’t spray too early. Wait until the weeds are building winter energy stores. Pre-harvest glyphosate application is appropriate in shorter growing season areas that generally have less time prior to a killing frost or even early snow cover for post-harvest applications. Pre-harvest glyphosate applications also make the most of the larger amount of foliage prior to harvest, able to capture the spray droplets and result in improved uptake by the plant. Canada thistle and quackgrass are ideal target weeds. Keep in mind, pre-harvest glyphosate is primarily for perennial weed control. Don’t expect glyphosate to act like a desiccant to dry down green plant material. For pre-harvest glyphosate to work according to expectations, the recommendation is to apply to actively growing weeds and ensure that application is not significantly impaired by the crop canopy. Some weeds are better targeted post harvest, after they have been clipped and allowed to regrow.
Post-harvest application Weeds growing closer to the ground under a dense crop canopy and now exposed after
Pre-seed application Overwintering annuals and spring germinating weeds that present prior to crop establishment are targets for a pre-seed application of glyphosate. The goal is to have no weeds in the field before crop emergence, as weeds will be very competitive and harder to kill than weeds that germinate with or later than the crop. Perennial weeds that missed a fall glyphosate application will not be effectively controlled with spring glyphosate application. In
Ad Number: SEC-MERE-12-T Publication: Grainews 3Col x 133 (6” x 9.5”) Non Bleed
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lyphosate will be more effective for different weeds at different times of the year.
harvest are ideal targets for postharvest glyphosate application. These weeds need sufficient actively growing, residue-free leaf material to absorb the maximum amount of glyphosate. The key is to check for leaf condition and active growth, indicating prime environment for glyphosate translocation to the root material. With cooler fall temperatures, weeds require time to generate enough new growth necessary for glyphosate uptake. Consider using a tank mix partner with glyphosate post-harvest for improved control, or to provide residual control, keeping cropping rotation restrictions in mind. Minor frost may actually improve glyphosate efficacy post-harvest, but always spray during the day when weeds are actively growing. Controlling volunteer crops postharvest may be effective to prevent insect and disease pests from surviving from one year to the next on living plant material. Foxtail barley, dandelions and winter annuals are target weeds post-harvest. Winter annuals germinate in the fall, growing right up until the ground freezes. Winter annuals include stinkweed, shepherds purse, cleavers, narrow-leaved hawks beard, storks bill, chickweed and flixweed. A pre-seed burn off with glyphosate will also control winter annuals.
Produced by: SeCan Product/Campaign Name: SeCan CDC Meredith Date Produced: October 2012
By Jason Casselman
the spring, perennial weeds are moving energy out of the roots. At best, glyphosate may only provide top growth control. On its own, glyphosate will not control volunteer glyphosate tolerant canola. If this is the target weed, consider a tank mix partner that will act on the volunteer canola. Glyphosate tank mix partners can improve efficacy and are part of good stewardship that includes herbicide group rotation. If few weeds have emerged when you’re ready to seed, consider a tank mix partner with a residual product to provide extended control. Watch cropping restrictions on residual products.
burn off on a non-glyphosate tolerant crop in the pre-emerge stage. It can be done, but the pressure is on to ensure the sprayer beats the crop before it emerges. Fields seeded without a pre-seed burn off will still have overwintering annuals and spring germinating weeds. The recommendation is to control these weeds with the pre-emerge glyphosate as soon after seeding as possible or get caught trying to take down oversize weeds.
In-crop application
Plan to make in-crop applications on glyphosate tolerant crops early, when the crop is at the one- to two-leaf stage. Early emerging weeds have more Pre-emergent application impact on yield than weeds that The clock is ticking if 10/25/12 you’re emerge afterPage the crop reaches the SEC-MERE12-T_GN.qxd 1:57 PM 1 waiting to spray a glyphosate four- to six-leaf stage. Volunteer
cereals and wild oats may have a second flush after the initial application. To check if a second pass of glyphosate is required, scout the field 10 days after the first application, giving the glyphosate time to show signs of activity and for new weeds to emerge. If you are planning more than one in-crop glyphosate application, be cautious with crop staging and total rates of product applied. Spraying glyphosate on current varieties of glyphosate tolerant canola when the crop is at bud stage or later may impact yield and maturity. Understand the most vulnerable growth stage of target weeds and your glyphosate applications will have a greater impact. † Jason Casselman is a partner and agronomist with Dunvegan Ag Solutions Inc. (www. howtogotoagsi.com) at Rycroft, Alta.
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NOVEMBER 12, 2012
Features CROP PRODUCTION
Maximize micorrhizae to boost flax yields Flax needs micorrhizal fungi to thrive. The right rotation can make a difference BY LISA GUENTHER
M
any farmers know seeding flax into canola stubble leads to lower yields. Some try to offset ill effects by pouring on the phosphorus. But research out of Manitoba shows applying phosphorus yields few benefits for flax. “For the most part, flax doesn’t respond really, really well to the fertilizer phosphorus anyway. Unless the soil is extremely deficient in phosphorus, you often will not see a response in flax to the phosphorus fertilizer,” says Cindy Grant, soil fertility expert with Agriculture and AgriFood Canada (AAFC). Grant and her colleagues conducted field research examining the effects of crop rotation, phosphorus application, and tillage on flax. Flax roots don’t access fertilizer granules the same way as crops such as canola and wheat. When canola plants find an area in the soil with a high concentration of fertilizer, they send more roots there to extract nutrients. But flax “hits it, shrugs, and keeps on going through. It doesn’t really proliferate its roots very well,” says Grant. Flax leans heavily on micorrhizae to access nutrients and water. Micorrhizal fungus inhabit
a plant’s roots, sending out filaments that pull in vital nutrients such as phosphorus, nitrogen, potassium, copper, zinc, and calcium. Many crops, including legumes, wheat and barley, host the fungus, but crops such as canola and mustard do not host micorrhiza. Seeding flax after growing a non-host such as canola decreases the flax crop’s ability to take in nutrients. Marcia Monreal is a soil microbiology scientist with AAFC and lead on the micorrhiza portion of the flax research. Monreal used an image analysis program to precisely measure the micorrhizae in the flax roots. When flax followed wheat, Monreal found more micorrhizae in the flax roots. The flax roots were larger as well. “Flax after canola has micorrhiza at six weeks, but a very different percentage,” says Monreal. Weather also played a role in micorrhiza establishment. During one cool, dry spring there were even more micorrhizae in the wheat-flax rotation. Root biomass and lateral growth increased. “One year that it rained a lot, the effect of micorrhiza was less,” says Monreal. Monreal says previous research shows rain creates favourable conditions for mites
and other soil organisms which eat micorrhiza. Wheat and barley aren’t the only crops that benefit the following year’s flax. Monreal says legumes and micorrhizae share common pathways, making legumes ideal micorrhiza hosts. “They are very friendly to each other. So a legume before flax would be excellent,” says Monreal.
Flax leans heavily on micorrhizae to access nutrients and water Grant says researchers looking at corn have seen similar results. Corn grown after summerfallow doesn’t perform as well as corn grown after a micorrhizal host. Monreal says it isn’t known if canola forms relationships with any soil microorganisms. Her study didn’t look at canola grown after flax, but she doubts canola would benefit from being planted into flax stubble. “It wouldn’t have any benefit because canola is not micorrhiza. So from a microbiology point
of view, flax before canola, it wouldn’t change anything for canola. Canola would still need fertilizers,” says Monreal.
MICORRHIZA RESERACH Premier Tech produces a micorrhizal inoculant for field and horticultural crops. The commercial inoculant uses a micorrhizal specie that has proven effective throughout Canada. Monreal wanted to see if other micorrhizal species could measure up to the commercial inoculant, so she obtained 10 species from a colleague in Ottawa. Last winter she inoculated flax roots, one species at a time, in a growth chamber. The inoculated plants produced fewer capsules. But capsules from the inoculated plants weighed 40 per cent more than those in the control group, more than making up for the lower capsule numbers. Monreal then picked the highest performing micorrhizae for field trials this summer. Flax plants were inoculated with the commercial inoculant and other micorrhiza species one at a time. Other plants were inoculated with combinations of different species. Monreal is still analyzing the results, but she says the research
should provide a glimpse into how micorrhizae interact. Some studies suggest different micorrhizae don’t compete, while others suggest some plants favour one species over others.
ROTATION AFFECTS QUALITY Some food markets are sensitive to cadmium levels in flax seed. Previous research has shown micorrhizae produce chemicals that interact with cadmium, so AAFC researchers measured zinc and cadmium levels in flax tissue and seed. Rotations consistently affected cadmium and zinc concentrations in flax. Flax following wheat had lower cadmium levels and higher zinc levels than flax following canola. Applying phosphorus also increased cadmium and cut zinc concentration in flax, which was consistent with previous research. Phosphorus fertilizer does contain cadmium, but even if the fertilizer contains very low cadmium levels, Grant says there is still an increase in cadmium concentration. Researchers think there may be reactions in the soil, or something going on inside the plant, causing cadmium levels to rise and zinc levels to drop. “Because cadmium and zinc are
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NOVEMBER 12, 2012
grainews.ca /
11
Features
PHOTOS: MARCIA MONREAL, AAFC
Micorrhizae can transfer nutrients such as phosphorus, nitrogen, potassium, copper, zinc, and calcium to roots.
Micorrhizae on flax roots. The flax root with more micorrhizae (blue dots and filaments, on the left) was seeded after wheat. The flax root pictured on the right was seeded after canola.
very closely related chemically, cadmium seems to hitch-hike a ride on the zinc transporters that the plants have at the root surface and also probably within the plant for translocation. And so it may be that part of the effect for phosphorus on cadmium is because the phosphorus reduces
economics of flax rotations over four years. Khakbazan found higher flax yields and net revenues in the wheat-flax rotation. The most economical practices were to grow flax after wheat, apply less phosphorus, and use reduced tillage. Though applying phosphorus
zinc, and by reducing the zinc it allows more cadmium to sneak in.”
DON’T SKIMP ON PHOSPHORUS Monreal and Grant also co-operated with Mohammad Khakbazan, who studied the
to the flax didn’t cure the lack of micorrhizae, Grant doesn’t advise skimping on phosphorus year after year. Alternately, building excessive phosphorus could cause environmental problems. “This whole idea of managing phosphorus through a rotation is becoming more and more of an
issue… do we need to boost up the amount of phosphorus in the crops that can accept large amounts of phosphorus so that we balance through for the crops that don’t do well with phosphorus?” † Lisa Guenther is a field editor with Grainews based at Livelong, Sask. Contact her at Lisa.
[email protected].
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NOVEMBER 12, 2012
Features GRAIN MARKETING
Put option — the real results Lots of experts recommend buying put options. Neil Blue reveals what would have happened if you’d done so last spring BY NEIL BLUE
I
n a Grainews article last spring I explained the alternative of using a put option to protect against possible canola price downside into the fall. Buying a put option before or during a growing season may appeal to farmers who are concerned about committing to a physical delivery with the possibility of a crop shortfall, to farmers who have already forward contracted with physical buyers or to farmers who have already sold their crop, but wish to retain the ability to take advantage of possible higher prices. Now we’ll take a look at how
that alternative turned out.
would
have
THE PUT OPTION First, here’s a quick review of a put option. Purchasing a put option gives the buyer of that option the right, but not the obligation, to enter into a “sell” futures position at a predefined price (the strike price) anytime before that option’s expiry date, regardless of what the futures price does. Buying a put option locks in a minimum futures price for a cost (the premium). Since buying a put option is done with a commod-
ity futures broker, the basis (the physical delivery commitment) is not set with this contract. This example of a November put option purchase uses real numbers from the ICE Canada canola market. On April 10, 2012 the November canola futures were trading at $590/tonne. The premium of the November 580 canola put option on April 10 was $22/tonne. Purchasing that November 580 put option for $22/tonne (plus about $1/tonne commission) on April 10 would have given you the right to create a sell futures position in your account at a price of $580/tonne, anytime
up to expiry of that option on October 26. This right to create a sell position is what gives the option a value. However, you do not have to exercise the option (create the sell futures position). It is generally better to just trade out of the option (sell it) rather than exercise it — you could have done that any trading day after it was purchased. The premium (value) of an option is subject to change by open market trading whenever the futures market is trading. To illustrate, for some selected dates from April 10 to mid-October, the table shows some snapshots of the November canola futures
price and the premium of that November 580 put option. Keep in mind how weather affected prices this past growing season. The season started off very well, both here and in the U.S., and the promise of high production pushed prices lower into the end of May. Then, by the end of June, concern began to intensify about the effects of drought in the U.S. By the end of July, while the continuing U.S. drought was driving grain prices to record highs, it was becoming evident that Canadian canola production may be clipped by severe and abundant hailstorms, disease and then insect and wind damage.
THE EXAMPLE
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The April 10 purchase of the 580 put options at a cost of $22/ tonne (plus commission) can be interpreted as locking in a minimum futures price. If the option is held to expiry, and on October 26 has no value, the entire premium (cost) is lost. Buying that option is equivalent to locking in a minimum futures price of $557/ tonne (the $580 strike price less the $22/tonne premium, less $1/ tonne commission). When the futures price fell from the April 10 level of $590/ tonne, the premium of the $580 put option rose. Alternatively, when the futures price rose, the value of the 580 put option fell. Yes, the put option was worth less when the futures price rose, but remember that this implied that the value of physical canola was also rising.
The put option worked just fine this year Keep in mind that anytime during the growing season, the buyer of this put option could have sold the 580 put option for its market value. Also, at any time during the growing season, this farmer could have entered into a contract with a physical canola buyer to lock in a deferred delivery price, or just the basis.
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In our Vermilion area, basis levels back in early April ranged from -27 to -42 (that is $27 to $42 tonne under November futures) for October delivery. Built into those moderately weak basis levels was the expectation of record acres seeded to canola and a potential record canola crop. Remember that buying the 580 put options alone did not lock in a basis level. The buyer of that 580 put option was still able to track basis levels with various canola buyers all summer. He had an opportunity to keep an eye on crop conditions and decide whether or not to lock in basis
NOVEMBER 12, 2012
grainews.ca /
13
Features with a basis contract or as part of a deferred delivery contract. As ideas of record canola production waned to the present low-production situation, our Vermilion area basis range has strengthened to -35 to +3, or $35 under to $3/ tonne over November futures. So, from early April to mid-October, basis levels have improved by $30/ tonne. That basis improvement can now be captured with a contract, and that $30/tonne more than offsets the cost of buying the put option, even if it was held to expire worthless. The futures price on October 17 was $15/tonne higher than it was on April 10 (that is, $605 on October 17 versus $590/tonne on April 10). That increase in price can also now be locked in.
SUMMARY The alternative of locking in an October deferred delivery contract on April 10, with $590/ tonne futures and a minus $27/
PRICE SNAPSHOTS
PERFORMANCE COMPARISONS, PER TONNE PRICES
The following table shows a few prices from the ICE Canada canola market during 2012.
USING A PUT OPTION Purchasing put options last April would have resulted in a higher profit per tonne, even after accounting for the expense of the expired option.
Date
November futures/tonne
November 580 Put option/tonne
April 10
$590
$22
May 23
$533
$40
Futures price (on October 17)
June 14
$554
$36
Basis
July 19
$636
$6
Sept 14
$651
$1
Oct 2
$583
$8
Oct 17
$605
$.50
tonne basis, would have netted $563/tonne. However, having bought the November 580 put, locking in the deferred delivery contract now would net $585/tonne (i.e., $605/tonne current futures plus $3/tonne basis minus $22/tonne option cost minus $1/tonne broker commission). Even though the value of the put was lost. The put option worked just fine
this year and, with it, you had the assurance of futures price protection on the downside, left the futures price upside open, retained the ability to shop for basis, and didn’t have to be concerned with the possibility of a physical production shortfall (and buyout fee) as with a deferred delivery contract. † Neil Blue writes from Vermillion, Alta. Contact him at 780-853-6929.
$605 $3
Cost of the 580 put option
($22)
Estimated commission costs
($1)
Net price:
$585
NO PUT OPTION In this case, the farmer locked in a deferred delivery contract on April 10, using the November futures price. Futures price (November 10)
$590
Basis
($27)
Net price:
$563
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NOVEMBER 12, 2012
Features Farm management
Deciding to incorporate Many farmers have already made the decision to incorporate. If you’re still on the fence, here are six potential benefits to consider By Danell van Staveren
F
arming has been in the family for generations. The farm you’re operating started out with only a few acres, but over the years it’s expanded. When your grandfather owned the farm, it was organized as a sole proprietorship. Now, you’re grappling with the decision to incorporate — to create a new legal entity for the farm. Not many years ago my husband and I encountered the same decision in our farming operation. The process is not without complications. Incorporating, like most things, has pros and cons,
and it’s not for everyone. How do you know if it’s for you? “To incorporate or not,” says Al Kimber, financial consultant at Weyburn Security at Weyburn, Sask., “comes down to income.” Kimber has 24 years experience as a financial planner, and specializes in agricultural and retirement planning. Kimber says incorporating gives you better control over your farm’s income and taxation.
rate of 25 per cent. The second begins at $42,000 and is taxed at a rate of 35 per cent. The third bracket begins at about $82,000 and is taxed at a rate of 40 per cent. The final tax bracket begins at $129,000 and is taxed at 44 per cent. While personal incomes can be taxed at up to 44 per cent, corporations earning up to $500,000 in income are taxed at only 13 per cent.
1. Lower tax rates
2. No need for income deferral
There are four personal tax brackets. The first begins at about $11,000 and is taxed at a
to keep from jumping up into the next personal tax bracket. Corporations are taxed at 13 per cent regardless of the level of income. This keeps the “tax tail” from wagging the dog, making way for sound business and marketing decisions.
3. Enhanced estate planning Some farmers fear that they will not have enough flexibility for estate planning with a corporate structure. “When that comment is made, people are failing to recognize what the alternative is,” says Kimber.
Incorporating removes the need to continuously defer farm income
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Sclerotinia disease infection on canola stems in a non-resistant hybrid (left) versus Pioneer ® brand 45S52 (RR) with the Pioneer Protector Sclerotinia Resistance trait (right). 2012; Nanton, Alberta.
Sclerotinia can be a costly disease for canola growers. Lost revenues exceeded an estimated $600 million in 2010, in a year when conditions were favourable for development of the disease. While the numbers are not all tallied yet, for many areas of the Prairies incidence of sclerotinia in 2012 was higher than we have seen in quite a few years.
Management approach
1. Crop rotation 2. Final plant population of 6–10 plants per square foot 3. Sclerotinia resistant hybrids 4. Foliar fungicide
“In 2012 sclerotinia incidence was worse than 2010 and far worse than 2011. Southeast Saskatchewan experienced much higher incidence than the south-central parts of the province. Seeding date also had a huge effect on levels of incidence.” Dave Vanthuyne, DuPont Pioneer agronomist for central and southern Saskatchewan
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“As far as incidence and severity, 2012 has been the worst I have seen for sclerotinia since 2007. I saw ranges of incidence from less than 5% to as high as 60% in fields. Some of the fields were sprayed and still had levels in the 30% range.” Doug Moisey, DuPont Pioneer agronomist for central and northern Alberta
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www.pioneer.com *Field results show that Pioneer Protector ® Sclerotinia resistance can reduce the incidence of sclerotinia in a canola crop by over 50%. Individual results may vary. Depending on environmental and agronomic conditions, growers planting Pioneer Protector Sclerotinia resistant hybrids may still require a fungicide application to manage sclerotinia in their crop. Roundup Ready ® is a registered trademark used under license from Monsanto Company. The DuPont Oval Logo is a registered trademark of DuPont. ®, TM, SM Trademarks and service marks licensed to Pioneer Hi-Bred Limited. © 2012, PHL PR383_TechTorial_TCM_AE
“Corporate structure would never hinder estate planning, and would likely only enhance it.” There is room for flexibility when using a corporate structure to transfer the farm to the next generation. For example, a share structure could be created where control sits with some shareholders and the opportunity for growth goes to others. Mum and dad could retain control of the corporation, while a daughter just beginning to farm receives a different class of shares, so she can receive financial benefits to grow her farming operation. Kimber admits that transferring specific quarters of land to certain family members can be administratively more challenging through a corporate structure, but a discussion with your accountant can make this possible.
4. Lower taxes at wind-up There are advantages to being incorporated when business operations cease, but before the farm is sold, or passed on. Personal tax rates are typically higher than the corporate rate. Kimber says, “In a planned windup, typically an active business corporation would turn into a holding company. This can still be a very efficient, and administratively simple, tax structure.” Nobody likes to think about it, but death of the farm operator does occur, and when it does, taxes must be paid. Tax on death is riskier with a proprietorship than a corporation. A corporate structure allows a bigger window to handle a lump sum sale, for example, inventory, or machinery recapture. Profits from a lump sum sale for a proprietorship will be taxed at personal tax rates.
5. Lower liabilities Incorporation may reduce liabilities. If you were to be sued personally, the corporation may remain exempt; if the corporation is sued, you may remain personally exempt. Still on a legal note, when the corporation borrows money, you will likely need to guarantee the loan personally.
6. Control personal income After incorporation, you will need income from the farm for personal expenses. This can be done through wages, dividends, shareholder’s loans or a combination of these. Incorporation makes it easier to split income, such as dividends, between spouses using different share classes. This has been an advantage for my husband and me. Personal income can be divided between spouses to meet personal and household needs whiel keeping each spouse’s income in a lower personal tax bracket, taxed at a lower rate. Wages: Wages paid by a farm corporation are subject to the same deductions as non-farm corporation wages, such as the Canada Pension Plan. Dividends: You can pay a percentage of profits to shareholders to avoid government deductions. However, if you are primarily taking dividends, you may still want to consider paying enough wages to equal 10 per cent of the maximum annual pensionable earnings ($50,100). This would be $5,010
» continued on page 15 PR383 Protector Advertorial 8.125x10 - 240UCR.indd 1
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15
Features Grain transportation
Producer cars in the new marketing era There are concerns about the future of producer cars. So far, so good By Leeann Minogue
B
etween changes to Western Canada’s grain marketing system and evolving Canadian Grain Commission (CGC) regulations, some farmers have concerns about the long-term viability of producer cars as a shipping option. Anything could happen in the long-term, but at the start of the 2012-13 crop year, producer cars are still going strong. Tim Coulter says CWB and the Canadian Grain Commission (CGC) have “really made it available to the farmer to load their own cars” in this new environment. Coulter is the president of the Producer Car Shippers of Canada Inc. He loads producer cars near his
farm at Briercrest, Sask., through the Briercrest Grain Limited producer car loading facility. Besides enjoying lower grain handling costs, Coulter uses producer cars to save the 42 kilometre drive to Moose Jaw. This has become more important, with high fuel costs and fewer financial incentives from terminals. Coulter says, “It seems like the trucking incentive is gone.” In mid-October, Coulter said that the number of producer cars loaded has been down a bit. “That’s a little disconcerting. “They’ve been spotting good,” he says. The problems weren’t with the process, but that that “farmers are just not participating.” However, this was before the CWB Harvest Pool October 31 deadline and Coulter was expecting pro-
ducer car sign up to improve as the deadline came closer. “We (farmers) have a tendency to leave everything until the last minute.” Barry Dakiw, who administers producer cars for the CGC says, “When I look at the numbers compared to last year, they’re comparable right now.” At business week 13 (the fourth week of October, before the Harvest Pool signup deadline) the CGC had authorized 1,720 producer cars for this crop year (most of the first three months of the crop year). Last year at week 13, the CGC had authorized 1,765 cars. In past years, 99 per cent of producer cars moved CWB grain. This year, Dakiw says there is a bit more variety, but CWB shipments are “still a high percentage of cars.” Another change is that they’re mov-
ing a wider variety of grain than before, including some canola.” Jaime Burbank, CWB’s farm service co-ordinator, says CWB’s producer car shipping program is going fairly well. The interest is there. Burbank says, “We’re doing our best to make sure it’s as easy and seamless as it used to be.” There are some changes to procedure, but Burbank says, as compared with previous years, “the process is very similar.” Many farmers who want to use producer cars signed up for one of the CWB’s price pools, but if you missed the deadline or don’t want to be in the price pool, you can sign a cash contract with CWB and use producer cars. However, if you’re selling outside of the pools, your delivery options will be limited to one of 25 “eligible loading sites.”
CWB is a big player in the producer car game, but it is not the only option. At the producer car loading facility in Briercrest, says Tim Coulter, “we can actually load producer cars through Parish and Heimbecker.” It’s not that difficult, Coulters says. “Phone the P&H marketing rep and take in a sample.” Producer car shipping has changed. “The first car I loaded was an auger over a grain car. It’s gone all the way to blended grain,” says Tim Coulter. These days, he says using a producer car loading site is “no different than hauling to your elevator or your inland terminal.” Tim Coulter says, “Farmers are going to have to accept the fact that if they don’t use it, they’re going to lose it.” † Leeann Minogue is the editor of Grainews.
» CONTINUED FROM PAGE 14
deciding to incorporate (10 per cent of $50,100) paid as wages, and allow you to qualify for disability insurance under the Canada Pension Plan. Shareholders loans: Shareholder’s loans are often used in conjunction with wages or dividends, and are a good way to add personal cash flow. Potential shareholder’s loan may be created when assets, such as land, are rolled into the corporation via use of the Capital Gains Exemption. For example, if one quarter of land worth $60,000 has an original purchase value (Adjusted Cost Base) of $15,000, then the $45,000 difference may be exempt from taxation (via the Capital Gains Exemption) upon transfer to the corporation. The corporation now owes you $60,000 — the shareholder’s loan. Your accountant can guide you through it. Having basic control over your personal income can allow you to take advantage of government programs. Families who keep their family net income below $42,707 (in 2012) are eligible for the Child Tax Benefit. Old Age Security is reduced 15 per cent for any income greater than $69,562 (2012). The GST credit is also affected by income level, and begins to phase out when family net income exceeds $33,884 (2012).
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Al Kimber sees only two main drawbacks. First: the initial cost of creating the corporation. This can run in the thousands of dollars. Second: the increased annual costs of preparing necessary financial statements, such as corporate tax returns and annual minutes. “Weigh those to other options,” says Kimber, “and they don’t compare. Assuming that you have consistently reached mid to high income, incorporating will never make your tax situation worse. It can only make it better.” If you are still pondering the question of whether to incorporate or not to incorporate, talk to qualified tax accountants and legal experts who will guide you through the process. † Danell van Staveren farms and writes near Griffin, Sask.
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NOVEMBER 12, 2012
Features Crop production
Crop Advisor’s casebook
MAKING “SCENTS” OF POOR CANOLA EMERGENCE
By Fred Redhead
I
received my first call from Joe, a Morinville-area farmer who farms 2,000 acres of canola and wheat, on May 28, 2012. Concerned with the level of scentless chamomile in his canola field, Joe was looking for a way to clean it up. He had planted glyphosate-tolerant canola on this particular field, but by late May, Joe noticed the chamomile had taken over his field. Given that the canola had been planted, but had not yet emerged, I suggested that he spray an herbicide containing clopyralid and glyphosate on the field. Twelve days later, Joe and I checked the efficacy of the chemical on the weeds. To our dismay, the herbicide had done little to set the chamomile back. At the time of application the weeds had already grown too big. A week later, Joe called again. “The chamomile is choking out the crop and reducing emergence,” he told me. I had a feeling there was more to this field than met the eye, so I decided to visit Joe’s farm again.
Fred Redhead
Scentless chamomile was choking out Joe’s crop.
Although some of the smaller weeds looked stunted from the herbicide application, the larger ones were still going strong. A thorough investigation revealed that the field was not uniform and had many low spots and inconsistencies to the soil. The areas of poor emergence did not correlate with those being choked out by the chamomile. Where there were higher incidences of weeds there did not appear to be fewer canola seedlings. We first thought that nutrients had leached from the affected areas, or excessive amounts of
water had drowned the cotyledons in low-lying regions; however, we quickly realized that the germination pattern did not correlate to those areas where nutrients had been abundant or water had been excessive. Frequent bare spots occurred randomly in the field. It had not been dry enough to cause fertilizer to burn the seed. However, continued scouting of the field revealed the cotyledons that had managed to push through the soil looked healthy, but many of the seeds that had germinated had died off before they emerged from the soil.
Crop Advisor’s Solution By Andre Laforge
W
hen Art, who farms 1,500 acres of canola, wheat, peas, oats and barley 10 miles east of Carrot River, Sask., noticed a problem developing in his oat crop in mid-June, he gave me a call right away. Areas of Art’s field had deteriorated over a matter of days, and were showing patches of pale green leaves. Initially, Art thought it looked like an issue with the ammonia applicator, but quickly ruled out that idea, as the discolouration was irregular.
Another possibility was that rainfall — about 3-1/2 inches — had caused the nitrogen to leach below the root zone. When I headed out to Art’s field to see the crop, I found it in exactly the condition he had described. Irregular patches of light green leaves were discolouring an otherwise healthy-looking crop. But upon closer inspection, I found that only the newer leaves of many plants sported the pale green colour, meanwhile the older leaves had maintained their natural healthy green hue. In the case of a rainfall heavy enough to cause nitrogen leaching, the whole plant is affected, not just
Frequent bare spots occurred randomly in the field.
Records indicated temperatures over that period would not have caused frost damage. There had to be something else going on here. The only thing that made any sense at this point was a problem with the soil. “What did you have here last year?” I asked Joe. “This is my first year with the field, and I don’t know what the previous renter had,” he told me. To diagnose this problem, the field’s history was crucial. What is causing the poor emergence of crop in this field? Send your diagnosis to
Grainews, Box 9800, Winnipeg, MB, R3C 3K7; email leeann.
[email protected] or fax 204-944-5416 c/o Crop Advisor’s Casebook. Best suggestions will be pooled and one winner will be drawn for a chance to win a Grainews cap and a one-year subscription to the magazine. The best answer, along with the reasoning which solved the mystery, will appear in the next Crop Advisor’s Solution File. † Fred Redhead is the director of operations at Westmor Terminals for Richardson Pioneer Ltd. in Morinville, Alta.
SULPHUR LOSS: MORE COMMON THAN YOU THINK the new growth, so it couldn’t be nitrogen deficiency causing the discolouration. “What did you grow on this field before oats?” I asked Art. Art said he’d grown alfalfa for the local processor for three years prior to the oat crop. No fertilizer had been applied to the alfalfa field, although he had a fertility program in place for the oats, which included nitrogen. A tissue sample confirmed what I suspected was the problem. Art’s oat crop was suffering from sulphur deficiency. Although highly mobile in soil, sulphur is relatively immobile in the plant, which resulted in the
discolouration of the plant’s new growth. In the case of Art’s oats, the soil sulphur was adequate to maintain growth up to the 3- to 4-leaf stage. At that point, perhaps aided by the heavy rain, the plants ran short of sulphur, producing new leaves that were an unnatural shade of pale green. By the time we received the tissue sample confirming our diagnosis, it was late in the season and Art’s oat crop was well advanced. Surprisingly, the crop recovered nicely. As conditions dried, the roots were able to reach the leached sulphur, and Art was fortunate to end the sea-
son with minimal loss. The damaged fields yielded about 100 bushels per acre. While canola is recognized as a crop with high sulphur requirements, all crops, including oats, require sulphur. It should also be noted that alfalfa is a heavy consumer of sulphur. Since then, Art has included a small amount of sulphur in his cereal blend. In general, eight to 10 pounds per acre added to cereal crops should safeguard them from future problems with sulphur deficiency — and yield loss. † Andre Laforge is a sales agronomist for Richardson Pioneer Ltd. in Carrot River, Sask.
Trait Stewardship Responsibilities
Notice to Farmers
Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. This product has been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. Excellence Through Stewardship® is a registered trademark of Excellence Through Stewardship. ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Genuity and Design®, Genuity Icons, Genuity®, Roundup Ready®, and Roundup® are trademarks of Monsanto Technology LLC. Used under license.
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Fight wheat midge in your fields. Protect your yields for years to come. Prairie wheat growers are putting midge tolerant wheat to work fighting wheat midge on their farms. And the Stewardship Agreement is there to preserve it for future generations. When you buy midge tolerant wheat, the Agreement you sign limits the use of farm-saved seed to one generation past Certified seed. It’s a simple step that keeps the interspersed refuge system at the proper level, preventing a build-up of resistant midge. Protect your yields and grade, and preserve this important tool for years to come. Contact your retailer or visit www.midgetolerantwheat.ca to learn more about these new varieties and how the interspersed refuge system works.
NOVEMBER 12, 2012
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Features DISEASE MANAGEMENT
Seeding fusarium-infected grain Treating seed infected with fusarium won’t stop the infection, but it could get your crop off to a good start BY LISA GUENTHER
F
armers with fusariuminfected grain may be considering seeding it instead of selling it. Others may have a hard time finding fusarium-free seed. Treating seed won’t reduce the fusarium head blight in the next crop. But, if done right, it can help infected seed get a good start. “When you use a seed care product, what you’re doing is helping the plant get up and grow and stopping those seed-borne diseases. But basically you’re not going to stop the infection coming from last year’s stubble or last year’s residue or the spores that are floating in from your neighbour’s field at heading time,” says Richard Marsh, cereal specialist with Syngenta.
GUIDELINES FOR INFECTED SEED Saskatchewan Agriculture’s website offers guidelines for farmers dealing with diseases such as fusarium in their seed
lots. When looking at the guidelines, farmers need to take into account availability and cost of disease-free seed, seed treatment costs, typical weather patterns and disease pressure for their areas, fungicide availability, scouting practices, and the cereal variety being grown. Ideally farmers should buy pedigreed seed from areas free of fusarium graminearum. Federal regulations don’t require certified seed to meet standards for fusarium infections so farmers should see a lab certificate, especially when buying seed from an area where F. graminearum is established. If farmers need to use infected seed, it should be tested for germination. Lots with poor emergence should not be seeded. Farmers may also want to have infected seed lots tested for vigour to see how the seed performs in less than ideal conditions. Damaged, sprouted, and immature seed can deteriorate over the winter. It’s worth re-testing such seed for germination in the spring.
Farmers in regions where F. graminearum isn’t established should avoid using seed with F. graminearum. Though there isn’t any compelling evidence that using infected seed increases fusarium head blight in that area, more research is needed on seed-borne fusarium.
If five per cent or more of the seed is infected, untreated seed may suffer from significant seedling blight. Saskatchewan Agriculture’s website suggests farmers producing breeder or select seed, along with organic farmers, be particularly cautious with infected seed.
Treating seed won’t reduce the fusarium head blight in the next crop If F. graminearum is established in the area, Saskatchewan Agriculture suggests using seed with no more than five per cent F. graminearum. Seed lots with two to three per cent or higher F. graminearum should be treated prior to seeding. Seed infected by other types of fusarium is likely safe to plant if less than five per cent of the seed is infected, and if F. graminearum is not present.
Alberta has not had fusarium head blight outbreaks caused by F. graminearum. Trace levels of the fungus have been found in the province, mainly in irrigated areas. According to the Alberta Fusarium Graminearum Management Plan, imported grain intended for seed must be tested and found free of F. graminearum, and treated with a registered fungicide.
TREATMENT APPLICATION CRUCIAL Syngenta offers a couple of options for cereal seed treatment. In 2013, they’ll be selling Cruiser Max Vibrance Cereals and Vibrance XL to treat seedborne fusarium. Syngenta also sells Proseed to farmers in areas with high fusarium levels. Proseed treats seed and soil-borne fusarium. Application is critical to seed treatment. If farmers are applying seed treatments themselves, applying the right rate to the seed is important. But covering every seed is just as important, Marsh says. Marsh says farmers can talk to a seed care specialist that works with the company where they purchased the product. Specialists can help calibrate and set up seed treating equipment to get 100 per cent coverage. “You can use the best seed care in the world and if you don’t get good coverage, you’re not going to be happy with the results.” Lisa Guenther is a field editor with Grainews based at Livelong, Sask. Contact her at Lisa.
[email protected].
Fall ch eck
list
Boo Rounkd Genuity up Re B o W ok Roun ady canola eather dup MAX B herbic ook w ide inter v acatio n
engineered to work together. Book Roundup WeatherMAX® herbicide with your Genuity® Roundup Ready® canola this fall. www.roundup.ca www.genuitycanola.ca Always follow grain marketing and all other stewardship practices and pesticide label directions. Details of these requirements can be found in the Trait Stewardship Responsibilities Notice to Farmers printed in this publication. Roundup WeatherMAX® is a registered trademark of Monsanto Technology LLC, Monsanto Canada Inc. licensee. © 2012 Monsanto Canada, Inc.
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NOVEMBER 12, 2012
Features DISEASE MANAGEMENT
Management practices can reduce fusarium Weather conditions drive fusarium head blight, but the right management strategies can help BY LISA GUENTHER
F
usarium head blight has plagued Eastern Canadian farmers for decades. Over the years the disease has spread into Western Canada, and the Canadian Grain Commission has found the fungus as far west as northern British Columbia. The right management practices will reduce fusarium levels most of the time. But even farmers who do everything correctly are at the mercy of the weather. “It is very much a disease that is driven by the environment. And now in Manitoba, it would probably be safe to say that if you have the right weather conditions, (there will be) fusarium head blight on your cereals (unless you protect with a fungicide),” says Dr. Jeannie Gilbert, research scientist with Agriculture and Agri-Food Canada (AAFC). Gilbert specializes in fusarium head blight and leaf spot pathogens. Fusarium overwinters on crop residue. Wheat and corn are both susceptible and should not follow each other in the rotation if fusarium is present. Gilbert says seeding a crop like soybeans into wheat or corn stubble is a better option. “There has been some suggestion that canola may not be such a good crop to (follow wheat). But it’s not a direct host of fusarium graminearum, and it would be preferable to do that than putting wheat back into your wheat residue, or wheat back into corn residue,” says Gilbert.
fusarium problems should consider a variety rated moderately resistant (MR) or at least IR for fusarium. “We hope in the future that we’re going to have varieties with a lot more natural protection against fusarium.” Marsh says more varieties with even better fusarium suppression are in the pipeline.
FUSARIUM PROBLEMS ARE DIFFERENT IN SASKATCHEWAN Management strategies for Saskatchewan farmers will depend
partly on which fusarium species has infected their fields. Dr. Myriam Fernandez, a cereal pathologist with AAFC in Swift Current, and her colleagues survey fields for fusarium head blight every year. Fernandez says there is F. graminearum in the Indian Head area this year. “But in Saskatchewan, the main FHB pathogen has been fusarium avenaceum.” F. avenaceum doesn’t produce DON, and so is not monitored by export markets. However, F.
avenaceum does produce other harmful mycotoxins. It will also attack cereals, pulses and even oilseeds. Saskatchewan also has other fusarium species, but so far they are at low levels, says Fernandez. Between 1999 and 2002, AAFC researchers surveyed nearly 900 cereal fields in eastern Saskatchewan, looking for links between agronomic practices and fusarium. High fusarium head blight levels, caused by F. avenaceum, were found in wheat and barley
E C N A M ERFOR
S L A E H R E G C I H P
T H RIG
T S S O R AC
Fields under reduced tillage seemed to have more fusarium Other cereals, such as barley and oats, are also susceptible to fusarium. Oats may not look as diseased, but Gilbert says fusarium species have been isolated from kernels and high levels of deoxynivalenol (DON, also known as vomitoxin) have been detected in Manitoba oats at times. Fusarium graminearum is the only species that spawns the mycotoxin DON. Two-row barleys are less susceptible to fusarium than six-row barleys, Gilbert says. There are also some newer wheat varieties such as 5602HR, Carberry, and Waskada, which are rated moderately resistant. Saskatchewan farmers haven’t seen as much fusarium, and susceptible varieties like Lillian have been grown regularly, Gilbert says. “And while (Lillian) grows extremely well in years when you have no conditions for fusarium development, it will get very, very diseased in a year when you have rain.” Richard Marsh, cereal specialist with Syngenta, says farmers with
These symptoms are typical of fusarium.
GROWING REGIONS CDC Stanley and CDC Abound were bred at the Crop Development Centre, University of Saskatchewan.
NOVEMBER 12, 2012
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Features
Management strategies will depend on which fusarium High fusarium levels were found in wheat and barley crops that followed pulse crops. species you’re dealing with.
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crops that followed pulse crops. However, F. graminearum levels dropped in cereals seeded into pulse stubble. Researchers think the higher levels of F. avenaceum in cereals following pulses may be linked to root and crown rot. “Even in a dry year, you might not get FHB, but you will still get survival of the fusarium pathogen in the roots and the crowns… So in the following year, if conditions are right for FHB, you’re going to still get FHB.” The surveys suggested links between tillage and fusarium. Fields under reduced tillage seemed to have more fusarium. “The more residue you have on the ground, the more fusarium survival there is going to be,” says Fernandez. Fernandez cautions that researchers weren’t able to pinpoint cause and effect relationships in the surveys. For example, though cereals seeded into canola stubble had fusarium head blight, Fernandez can’t say what caused the FHB. “We have not been able to completely understand the mechanisms. It could be factors related to the crop and to the survival of the different pathogens in the residues and in the roots. And it could be due to the glyphosate. It could be due to the high nitrogen levels in the crop because people tend to apply more nitrogen in the canola crop compared to people who practice wheat after wheat.”
FUNGICIDE APPLICATION TIMING IS CRUCIAL Syngenta released Fuse, a new fungicide, in limited quantities this year. Fuse is a Group 3 fungicide that suppresses fusarium and controls several cereal leaf and rust diseases. Marsh says farmers should apply Fuse at the early flowering stage. The main stem will usually flower before the tillers, making it difficult to time application. “You have to make a bit of an estimation as a grower or an agronomist. Probably go with main stem because… main stems give you your biggest yield,” says Marsh. Often plants are at different stages of maturity across the field. Marsh says many people will scout for flowering plants. Once plants are starting to flower, they’ll try to spray within 12 to 24 hours. Farmers need to make sure the fungicide covers the entire head. Effective forward-backward facing nozzles help ensure good coverage, but driving too fast can reduce coverage. Marsh says there are new nozzles coming out designed specifically for controlling fusarium that also allow farmers to drive a little faster than older models. Calibrating the sprayer and correcting the boom height also help ensure good coverage. Marsh says fungicides won’t stop fusarium 100 per cent. Rotation, residue management, variety selection, seed care, and using clean seed are important management practices. “If you don’t do those first five steps correctly, coming in with a foliar fungicide, you’re probably not going to be very happy with the results. You have to have an integrated management plan.” † Lisa Guenther is a field editor with Grainews based at Livelong, Sask. Contact her at Lisa.
[email protected].
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NOVEMBER 12, 2012
Columns OFF FARM INVESTING
Four tax tips for 2012 It’s time to start thinking about your 2012 tax situation have well over $20,000 in your out tax free and use the cash to buy ($7,500) in taxes for 2012, the payaccount. tax deductible inputs for your farm back on this money management After a decent year for cattle and such as fertilizer or seed. move would be quite good. grain prices, you need inputs for Then, if you like the prices, you Of course you could just borrow next year but you’re running out of could defer an equal amount of the money to buy the tax deductcash. And, if you sell more cattle or income into 2013 when you sell ible farm inputs, which might be grain, the tax man might be chew- more of your crop. a lot easier than working with the s we near the end of ing at your wallet at tax time. money in the TFSA. GRACOL 2012, it’s a good time to While a transaction over think about investments, $20,000 might not be a big 2. USE THE Client:forBroadhead Co. some f a r m i n g a n d t a x e s . amount a larger farm, INVENTORY PROVISION Often, little tricks of the trade can farmers might reduce their 2012 69925 help delay or reduce taxes payable taxes by buying spending another The seven or eight tough years 𰂦𰀡𰀲𰀲𰀳𰀲𰀡𰁋𰁢𰁤𰁬𰁴𰁰𰁯𰀡𰁔𰁵𰀡𰁏𰁆𰀭𰀡𰁔𰁵𰁦𰀡𰀲𰀲𰀴𰀡𰂦𰀡𰁎𰁪𰁯𰁯𰁦𰁢𰁱𰁰𰁭𰁪𰁴𰀭𰀡𰁎𰁏𰀡𰀶𰀶𰀵𰀲𰀴𰀡𰂦𰀡𰀷𰀲𰀳𰀯𰀸𰀷𰀸𰀯𰀴𰀵𰀶𰀶 on various types of income. $20,000 on inputs. in the beef business wore down a Epson Color Profile: Gracol Swop Newslot to Lpi: According the rules for TFSAs, ofSupplied cattle producers. Now that is possible to take all the prices areNews up and could stay up for Approval Stock: it Fortune McCoy Producto money Pub News Supplied Epson Stock: Comm/Gracol Pub/Swop3 1. CASH OUT YOUR TFSA out of a TFSA tax free this year, and a few years, some cattle producers In January, cash in the deferred might be tempted to sell some or Many Grainews readers have put the money back in next year income and put the money back all of their beef herd to cash in set up Tax Free Savings Accounts with no tax implications. (TFSAs). If you’ve been contribSo, say you have $25,000 in your into your TFSA. Whether you save on the high price for cows and uting $5,000 per year you could TFSA. You could take the money 10 per cent ($2,500) or 30 per cent replacements. ANDY SIRSKI
A © 2012 The Mosaic Company. All rights reserved. Fusion is a trademark and MicroEssentials is a registered trademark of The Mosaic Company. MES-0410
Selling near the top might trigger a big tax bill
BY DAN PIRARO
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But selling near the top might trigger a big tax bill. So what to do? If you and your tax adviser did not use the low income years to build up your inventory provision, you might be able to amend your tax returns for the past few years. With the amendment you might be able to raise the amount you claimed for capital cost allowance. That would raise your farm losses and you could include more and more inventory provision each year. The Canadian Revenue Agency (CRA) might restrict how many years you could go back but it might be worth a try. A little thinking and talking with your advisor could help you decide if this is worth the effort. If you can come out of the bad years with a large inventory provision number, that number would be a tax deductible amount in the year you sell out, whether it is this year or next. The inventory provision has been around for years but I’ve heard that some tax preparers don’t use the strategy. In simple terms, the inventory provision lets you use as paper income the value of your inventory of crops, hay and or livestock to offset farm losses and cover personal exemptions. The amount of inventory used as income in one year is carried forward as an expense into the next year — if you have losses or personal exemptions for several years you can systematically build your inventory provision (carried forward farm loss) into a year when you have a high income. Again, a chat with your tax adviser might be in order. On your tax forms, the paper income is recorded on line 9941 as inventory provision; next year line 9938 would show that amount as an expense.
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NOVEMBER 12, 2012
Columns 3. Get a promissory note
Stocks update
Some years ago while I worked for Grainews, I came across this tax tip and I think it still works. Suppose you plan to sell most or all of your beef herd. At today’s prices the tax bill might just keep you from selling out. If you did not build up a large enough inventory provision, there is another strategy that might pay off. You would need to sell your herd though a qualified auctioneer and you might want to talk about this before you decide to sell. And, of course you would want to deal with a business that is going to stay in business. The idea is you sell your herd through the auction business, take cash to cover your farm expenses, personal exemptions and some reasonable taxable income and set up a promissory note with the auction house for the rest of the money from the sale. The idea would be to make that promissory note out for six to eight months; it would become income when the note matures, well into your next tax year.
I’ve seen some action in several of my stocks lately. Copper Mountain (CUM) is one of them. CUM has been a disappointing copper mine start up. Share prices dropped from $7 to under $3 and I have sold calls and puts on many of my shares. CUM has a mine near Princeton BC, has the infrastructure, a customer for its ore and mines copper, gold and silver. I own a few thousand shares. Lately the price of CUM has edged up to $4. I suspect the company has finally solved its start up problems. Plus, the price of copper has come up the right hand side of its cup. And China will have a new leader come November 8. I think the Chinese administration has decided to let the new leader set policies; the current leader is not doing much to stimulate the Chinese economy. But China did issue a $42 billion stimulus lately. China had a week of holidays in early October. My opinion is that after November 8 the price of copper will rise above $4 a pound and CUM stocks will go up. Thomson Creek Mines (TCM) mines molybdenum in the U.S. and is developing a copper mine in B.C. The price of molybdenum is depressed, so to save cash the company has stopped stripping stuff above the ore. If molybdenum pries don’t improve, the U.S. mine will be mothballed after 2014. TCM issued enough shares this past spring to pay for the start up of the copper mine. I have a few thousand TCM shares and have sold puts on a few thousand other shares. Delphi Energy (DEE) was brought to my attention by a StocksTalk reader. This company is a developer of natural gas in northern Alberta. DEE has 14 sections of leased land and permits to drill 30 more wells besides the three they’ve already drilled in an area that already has producing wells all around. Most of the time developers drill one well per quarter section and then drill horizontally from there. Inmet Mining (IMN) and Hudbay Minerals (HBM) have both borrowed money from Franco Nevada (FNV). FNV has examined the outlook for IMN and HBM so I bought 1,000 shares of IMN and sold calls for November with a strike price of $48 and collected $1.85 per share. That was the second call I sold on those shares. I paid $48.57 for the shares, and collected $0.81 per share the first time I sold a call. This second call brings my paper cost down to under $46; I think I can make this one work. Franco Nevada (FNV) lends money (as it did to IMN) and takes gold back as payment. The stock has done well the past few years, and although it’s more or less in the same business as Silver Wheaton (SLW) the share prices are not nearly as volatile. But they are pricey. I started buying at about $47 per share, and lately have been buying more shares on pullbacks. The shares often hit new highs, then drops about eight per cent. Recently, I bought 200 shares at $56.50 and another 200 at $57.50. Looking (speculating) ahead, I think FNV has potential. †
4. Set up a TFSA Aside from the hog business, 2012 has been a half decent to a great year for many farmers. In some parts of Western Canada, farmers who have suffered through three or four years of poor crops have finally harvested a great crop that they can sell at great prices. I couldn’t blame any farmer for not setting up a TFSA when he had a poor crop. But with better prices now, it might be time to go to a discount broker at your bank or credit union or talk to your financial adviser and set up a TFSA. Any Canadian over 18 can set up a TFSA and deposit up to $5,000 a year going back to 2009. This is four years now ($20,000) and five years come January 2013 ($25,000). That can be for husband and wife. The deposit is not tax deductible like money placed into a Registered Retirement Savings Plan (RRSP). However, taxes are paid in advance and don’t have to be paid again when the money is withdrawn. Whether an RRSP or a TFSA is better for you depends on how much taxable income you expect to have when you get old(er). When you retire, if you expect to earn enough taxable income to trigger a claw back on your Old Age Pension, a TFSA might work for you. If you are enjoying a bigger tax refund, contributing to an RRSP might work better for you for now. If you have a trading account and hate paperwork, moving some money from the trading account to a TFSA would reduce or eliminate paperwork. Once you fill out the forms for the TFSA there is no paperwork at tax time like there might be with a trading account. If you set up a self-administered TFSA, you can do what I do. I own shares, sell covered calls and buy puts in our TFSA. Some financial companies charge a fee for TFSAs. And some counsel their customers to buy GICs or bonds that pay two per cent a year. These don’t make much money, but at least the money is protected from losses. My TFSA money is fully invested in stocks and I sell covered calls on most of them.
Andy Sirski is mostly retired. He enjoys gardening, his granddaughters, his Datsun and managing his investments. Andy publishes an email newsletter called StocksTalk. If you want to read it free for a month email Andy at
[email protected].
grainews.ca /
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NOVEMBER 12, 2012
Columns Soils and crops
Clearing out the bush
People normally talk about “pushing” bush. But “pulling” it can be far more effective By Les Henry
T
his issue marks 36 years since my first Grainews scribbles in November, 1976. Many thanks to the readers that advise me to keep writing. My Dundurn farm is in the Allan Hills south of Saskatoon — rolling land with stones and sloughs and many poplar bluffs. We normally dispense with bluffs by “pushing” the bush, usually with a big bulldozer. Bush pushing is normally done in winter when the ground is frozen and the trees neatly break off at the ground surface. I did some of that 10 years ago but the “pushing” leaves all the roots in the ground and a brush pile containing lots of good topsoil that makes it hard to burn. I had a few acres with a small poplar bluff that was part of a pasture in early days, and the settler had placed a couple of small dams to insure water for the cattle. My soil probe revealed generous depths of good black nutrient rich topsoil. I have been salivating for years about putting that topsoil to better use. But it was hard to attract a trackhoe for a small job. Luck was with us when one appeared at a nearby farm.
The job The job included a drainage component to drain a small slough into a larger slough with a dam to keep the water in. If 2013 turns out dry I will be looking for a way to get that water on my pea crop. The contractor was Viscount Excavation Inc. (Dean Schlosser). Dean made sure I was there when the job was done. He asked me what I wanted and did way more than I thought possible. I have huge respect for folks that can make a huge machine like that work like a toy to do great things. If you have bush to get rid of, the “pulling” method works much better than “pushing.” I have no financial interest in Viscount Excavating Inc., and did not know Dean Schlosser until he appeared in a neighbour’s yard. †
photos: les henry
The bucket on one side and the “ thumb” puts on the big squeeze and out it comes — roots and all.
The “pulled” bush is then placed on one large pile. Little loss of topsoil and lots of air space. Add some accelerant and it should burn like a furnace.
Dean Schlosser and his machine. He plays it The little engine that could. The skid steer on tracks like a piano with very nice music and quietly The little engine that could with very capamade it all work well. It cleaned up and kept things tidy. does an amazing job. ble Dave Breckner at the controls.
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J.L.(Les) Henry is a former professor and extension specialist at the University of Saskatchewan. He farms at Dundurn, Sask. He recently finished a second printing of “Henry’s Handbook of Soil and Water”, a book that mixes the basics and practical aspects of soil, fertilizer and farming. Les will cover the shipping and GST for Grainews readers. Simply send a cheque for $50 to Henry Perspectives, 143 Tucker Cres., Saskatoon, Sask., S7H 3H7, and he will dispatch a signed book.
By Dan Piraro
Bizarro Sign your Nexera canola production contract for a minimum of 500 acres before November 29th, 2013 – and get a $1000 signing bonus. Visit healthierprofits.ca for details.
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NOVEMBER 12, 2012
grainews.ca /
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Columns Grainews columnist
Soils and crops
Les Henry’s earthworm survey Help Les Henry mark 36 years of contributions to Grainews by contributing to his earthworm survey
By Leeann Minogue
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Leeann Minogue
wo issues ago, our columnist Les Henry wrote a column in Grainews about an Agriculture and Agri-Food Canada (AAFC) laboratory study at Lethbridge that looked at the retention of anhydrous ammonia (NH3) in soils with different pH, clay, organic matter and moisture content. The study’s laboratory conclusion, that dry soils are better able to hold NH3, matched the in-field conclusions Les Henry reached through his work in Saskatchewan the 1980s. AAFC found that organic material in the soil was important when it came to retaining NH3, that clay content wasn’t so important, and that soil pH was the most important factor. While Les Henry included a helpful chart with his original column. Due to a production problem that can be classified as an E.E. (editor error), the table was not included. We’ve included it now, and I apologize for the omission in the October 8 issue of Grainews. The AAFC research paper, “Retention and nitrification of injected anhydrous NH3 as affected by soil pH,” was written by M. B. Benke, T. B. Goh, R. E. Karamanos, N. Z. Lupwayi, and X. Hao. The article was published in a recent issue of the Canadian Journal of Soil Science, (Issue 92(4), pages 589 – 598). Researchers found that, 24 hours after injection, if soil pH was greater than six, 92 per cent of the nitrogen would be retained in the soil (plus or minus two per cent). If the soil pH was greater than 7.5, only 64 per cent of nitrogen would be retained (again, plus or minus two per cent). After more time passed (more than 48 hours), nitrification increased. †
A
s you can read in his column on page 22, this issue marks 36 years of Les Henry’s contributions to Grainews. In the last issue, Les Henry put out a call for information about your experiences with earthworms in the field. We’ve had a great response so far, both from readers who think earthworms are the greatest things for their fields, and from gardeners who would rather not have them around. If you haven’t responded yet, please fax, email or mail us with your comments. Les would like to know: where you live, how often you see worms when you check seed depth, how many years you’ve been continuous cropping and what sort of crop rotation you use. He’d also like to hear any other comments you have. (Les always says that reader feedback is the best part of this long-running job.) Fax your comments to 204944-5416, email them to leeann.
[email protected], or mail them to Les Henry at 143 Tucker Cres, Saskatoon, Sask., S7H 3H7.
Soil and pH: the missing chart
Les Henry near Milden, Sask. This photo is of Les Henry standing on the home quarter where he was raised, three miles west of Milden. There’s not much sign of his family homestead now. Les Henry says, “The farmstead was bulldozed by my nephew in the 1970s. The cairn in the photo has the 1950s aerial photo of the farm etched in black granite which is firmly welded to an 8,000 pound granite rock. This cairn will be there long after we are pushing daisies!” † Leeann Minogue is the editor of Grainews.
“This cairn will be there long after we are pushing daisies.”
TIME TO
POUR ON THE PROFIT.
Leeann Minogue is editor of Grainews.
Percentage of free NH3 in relation to pH pH
% Free NH3
6
0.1
7
1.0
8
10.0
9
50.0
By Dan Piraro
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NOVEMBER 12, 2012
Columns UNDERSTANDING MARKET BULLS AND BEARS
Decisions, decisions Choosing futures/basis contracts for your grain sales can be a challenge. The right answers depend on the timing and your situation BY BRIAN WITTAL
I
f you want to manage your own pricing risk for wheat in your own way, grain handing companies, including the CWB, offer futures/basis contracts that enable you to fix a price and delivery period for your wheat when you want. A word of caution: very few grain companies are willing to handle wheat that has been priced on a CWB futures/basis contract, as these contracts compete directly with their pricing contracts. So before you commit to a CWB futures/basis contract call your local elevator.
The components of futures/ cash contracts are the same with all companies. The devil is in the details.
FUTURES AND BASIS The futures side of the contract is pretty straight forward. All companies use one of three U.S. wheat futures as their pricing platform, depending on the class of wheat they are buying: • Feed wheat — the Chicago exchange. • Winter wheat and mid-quality milling wheat — the Kansas exchange.
• High-quality milling wheat — the Minneapolis exchange. Be aware that companies may use a different futures month other than the nearby month when they price their contracts. When comparing prices make sure to ask which month they are using. The basis should include all costs associated with getting your grain from the elevator to the end market: freight, elevation, cleaning, handling, administration fees and profit margin. The basis you choose will determine which month you will deliver your grain.
LOCK IN PRICE
TIMING
You have the ability to lock in either the futures or the basis first, then lock in the other component at a later date (a two step process). Or, you can price your grain using a net price or deferred delivery contract. With these contracts the futures and basis are locked in at the same time giving you a net price for a future delivery period (a one step process). Which works better? It depends. It depends what time of year it is, what the world economy is doing, what the world markets are telling you about grain prices, whether your grain is the field or in the bin, your quality, historical futures and basis prices, and how much time you devote to marketing your grains. Consider all of these points and more when you put together your marketing plan.
It is early in the new year and grain futures are historically high due to world economic and market uncertainty. Basis levels are traditionally wide at this time of year because very few actual sales have been made yet by grain companies. You may want to consider locking in the futures only to secure that higher value and wait for the basis to narrow in sometime in the future. At times throughout the year, as futures cycle up and down, there are times when the futures are low and grain companies will narrow their basis in dramatically to get farmers to commit the deliveries they need to ship against a sale. At times like this, you may want to consider locking in the basis only, with the intent to wait until the futures recover to higher levels before locking them in. There are times when futures are at historically high levels and the basis at historically good levels so you may just lock in a net price/deferred delivery contract and call it good because you don’t think it will get much better than that for awhile. Once you have the futures and basis components of your contract priced there should not be any further deductions taken off of your net contracted price as long as the grade you deliver equals the grade you contracted. If it doesn’t a grade spread adjustment will apply. Spread adjustments will be made for grade, protein and moisture that vary from whatever your base grade was on your pricing contract. The grade spread that will be added or deducted is determined by the grain company the day you get your cheque. The spread will be calculated based on their ability to work with the grade you delivered and current market spreads based on sales they have made. These types of contracts and strategies apply for pricing any grains where there is a viable futures market trading, and you can lock in a value when you think the time is right. The major risk involved with using these contracts pre-harvest is that you are committed to delivering the tonnes. If you should experience a major crop loss event you will have to buy out of your contract if you can’t deliver. The buyout is a simple calculation, if your contracted futures value is lower than the current day’s future value you owe the grain company the difference for every tonne of grain you can’t deliver, plus a possible administration fee for processing the buyout contract. This can get expensive, fast! So what percentage of your anticipated production should you risk pre-pricing, pre-harvest? That depends. Based on a number of the points mentioned above you need to evaluate each grain separately to determine the best pricing strategy. That will be the topic of my next column. †
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74-44 BL CONSISTENTLY OUT PERFORMS
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2012 YIELD COMPARISONS (BU/A)* L Series 74-44 BL
40.6 43.2
N = 55
2 YEAR YIELD COMPARISONS (BU/A)** L Series 74-44 BL
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42.8 44.9
N = 67
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*Source: 2012 Monsanto Field Scale Trials as of October 3, 2012. **2011-2012 Monsanto Field Scale Trials. DEKALB represented by 74-44 BL; InVigor by L150, L130 and L120. Individual results may vary, and performance may vary from location to location and from year to year. This result may not be an indicator of results you may obtain as local growing, soil and weather conditions may vary. Growers should evaluate data from multiple locations and years whenever possible. Always follow grain marketing and all other stewardship practices and pesticide label directions. Details of these requirements can be found in the Trait Stewardship Responsibilities Notice to Farmers printed in this publication. DEKALB® and Design and DEKALB® are registered trademarks of Monsanto Technology LLC. Monsanto Canada Inc. licensee. InVigor® is a registered trademark of Bayer. ©2012 Monsanto Company.
Brian Wittal is a Saskatchewan-raised farm boy who has spent the past 32 years in the Alberta Grain Industry. He started Pro Com Marketing Ltd. in 2006 with a focus on helping grain producers better understand the markets and advise them on how to market their grains more profitably. Contact Brian at
[email protected].
NOVEMBER 12, 2012
grainews.ca /
25
Columns MANAGEMENT MINUTE
Land: to buy or not to buy It’s not always easy to know if buying high-priced land makes good financial sense THE SITUATION ANDREW DERUYCK
MARK SLOANE
W
e recently had calls from two very distinct farm clients, opposite in nature, but both asking the same question. “Should I buy that land that’s in the paper for tender or let it go?” Their situation is not unique. Good crops and good prices in last five years combined with extremely low interest rates have pushed land prices to an all time high. Local farmers that didn’t buy land two years ago at $2,000 dollars an acre don’t want to miss out this year. Those that did buy made a profit, and are hungry for more.
Johnny Cash is 58 years old, owns 2,500 acres, a decent line of equipment and carries next to no debt. Lee Vergdupdabutit is younger and started farming five years ago. He farmed through some of the most profitable times in the area and has poured every cent of profit back into leveraging more growth on the farm. For the significant risk he has taken in the past five years he has been well rewarded but it has also left him with very high payments, marginal working capital and not a lot of breathing space. Without experience to tell him differently, he feels his present financial situation is reasonable and sustainable. He has had no difficulty sourcing credit — with strong past income statements and high values placed on land, creditors are generally supportive of his operation. It is pretty well understood in the area that the land for which both farms are bidding will sell for $3,000 per acre or higher. Cash has accumulated significant cash and liquid invest-
ments with mediocre returns of less than three per cent. This capital is considered passive capital by CRA — the interest he earns on these investments is taxed at around 50 per cent. If this capital was invested in the land and he achieved a net margin of $150 per acre, Cash
It is very important to understand people’s motivations for purchasing land would receive a return of five per cent on his investment, taxed at his current corporate rate. Cash’s risk lies in the potential future depreciation of land value, due to rising interest rates and/or falling net margins per acre. He would only realize this risk if he was to sell this land at a low price. This risk can be mitigated
through his strong financial position and long term ownership of the land. Vergdupdabutit, on the other hand has a totally different but equally valid set of risks. He has very little capital to invest in the purchase and thus he will need to finance most, if not all, of the purchase price. His motivation has been to make more money through growth and efficiencies gained through economies of scale. The reality is that if Vergdupdabutit achieves the same return of $150 as Cash is expecting, Vergdupdabutit’s interest cost alone at five per cent would be $150 per acre and he would pay property taxes on top of this. These two figures only address his cost, without giving any consideration to the cash he would need to make the principle portion of the payment. The only other motivation for Vergdupdabutit is that he believes that long term interest rates are an outstanding value currently and he thinks inflation will make the payments on this land very affordable 10 years from now. His risk is that if margins
decrease or his interest term renews into a higher interest rate environment, the land will become tremendously unaffordable and strain his entire operation. The fact of the matter is that agricultural margins are not tied directly to inflation.
THE MORAL The moral of this story for industry professionals is that it is very important to understand people’s motivations for purchasing land when helping them evaluate their risks and opportunities. For farmers, the moral is that, in today’s market, people are investing in land for a multitude of reasons. There is a wide spectrum of motivations and a vastly different set of risks than we’ve seen in the past. † Andrew DeRuyck and Mark Sloane manage two farming operations in southern Manitoba and are partners in Right Choice Management Consulting. With over 25 years of cumulative experience, they offer support in farm management, financial management, strategic planning and mediation services. They can be reached at
[email protected] and
[email protected] or 204-8257392 and 204-825-8443.
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26
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NOVEMBER 12, 2012
Columns Farm financial planner
Selling best solution for subsistence Prairie farm
Michael and Theresa have inherited a farm. Now they have to decide what to do with it By Andrew Allentuck
A
couple we’ll call Michael, 50, and Teresa 45, are heirs to a third generation f amily farm in Manitoba left to them by Michael’s recently deceased parents. Michael and his wife are both middle level managers, each in separate companies in Alberta, their home province. They are raising two children, ages three and six, and earning a combined annual gross income of $122,000. Though he grew up on the 480acre farm, Michael has no great passion for it. Yet he feels obligated to consider the idea of returning to the farm, for the farm is his legacy. Michael’s alternative is to sell. A neighbouring farmer has offered him $588,000 for the entire operation (which includes some debt). Michael and Teresa asked Don Forbes, head of Don Forbes and Associates/Armstrong & Quaile Associates Inc. in Carberry, Manitoba, to work with them to review their options. Should they leave their existing jobs and move to the farm or sell it, take the money and create a better life for themselves?
The issue The issue is whether the farm can support Michael and his family. A review of Michael’s parents’ tax returns for the last five years shows an annual taxable income in the range of $20,000 to $30,000 per year. If that’s the total income that can be earned from the farm, quitting their jobs would entail a decline in their way of life, at least in financial terms, for Michael and his family. Moreover, Michael and Theresa would need to sell their present home and use the $300,000 of equity to recapitalize the farm. The farm machinery needs to be updated, and the farm is in need of more operating capital. They would also have to improve the farm house and use their capital to subsidize their living costs. Ultimately, they would need more land to make the farm economically viable, says Forbes. And even if a few hundred acres of land were available at the current going rate of $1,200 to $1,300 per acre, the interest costs they would incur on borrowed funds would exceed the budgeted economic return. It is doubtful that this farm can be turned into a grain operation able to sustain the family. Reducing the scale of the operation by turning the operation into a market garden farm is not possible in their area — they are located far from urban markets. Likewise, attempting to create a high cost dairy farm would not be possible. Even a beef cow operation would be doubtful, for the lack of scale would work against them, Forbes says. It comes down to whether to eke out a marginal existence on the farm, or to sell the farm and use the cash to make life better for themselves and their children. Their present budget is tight, even with their six figure incomes.
Current situation Last year, out of their $122,000 annual gross income, Michael and Theresa paid what may regarded as non-negotiable or fixed costs of $32,000 for income tax, $6,000 for Canada Pension Plan (CPP) and Employment Insurance (EI), $10,250 for daycare for their children and $12,480 for mortgage payments. That left $61,270 for other costs of living — about $5,100 per month for food, gas and repairs for two cars, entertainment, travel, myriad expenses for their small children, clothing and grooming and all other expenditures. They were not able to save much for their Registered Retirement Income Funds (RRIFs) or their TaxFree Savings Accounts (TFSAs).
had with both parents working and a mortgage to pay. Deducting other costs of living from the net family after-tax income, they will have a surplus of about $2,300 with no debts to pay.
When Michael reaches age 65, increased personal tax credits will eliminate any residual tax payable. He can then access what will be about $64,200 in his TFSA account, based on $5,000 per year annual contri-
have risen to about $1.5 million. It is a sufficient amount to sustain the couple for life and to leave a legacy for their children. “This plan is an efficient way for the couple to cope with a farm situation that is financially unwork-
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Selling the farm Michael and Theresa expect to be able to realize $588,000 from sale of the farm. With that money, they could pay off their $132,000 mortgage and contribute enough to their large Registered Retirement Savings Plans (RRSP) space to bring their tax rates down to a middle range. The farm sale will enable them to put $40,000 into their RRSPs this year and another $18,000 into their RRSPs next year. Teresa plans to quit her job. If that happens, Michael can use a spousal RRSP to take advantage of what is likely to be a low tax rate when Theresa withdraws funds. They can also put $2,500 for each child into the family Registered Education Savings Plan (RESP). The Canada Education Savings Grant (CESG) of the lesser of 20 per cent of contributions or $500 per child will push total contributions with growth at 4.5 per cent per year to an approximate value of $118,000 in a dozen years. By the time their eldest child, now six, is ready for university or other post-secondary training, the account will have about $118,000. Reduced contributions of $2,500 per year plus the $500 CESG can continue another three years until the younger child is ready for university. The account can be split so that each child has about $60,000 for four years of tuition and some expenses. Michael and Teresa can also use their inherited cash for TFSA contributions. They can use all of their available TFSA space, $15,000 each, and then put $5,000 per year into each account in future years. The balance of money realized from the farm sale, can go into a joint, taxable investment account. They should overweight dividendpaying common stocks to obtain partial tax relief via the dividend tax credit, Forbes recommends. With the new income and asset structure, the family will have $66,000 from Michael’s annual gross income. He will have larger personal and dependent deductions that will lower his taxes to $3,000 per year, $3,000 of CPP and EI contributions, and, as a result, about $60,000 of discretionary income, not far from what they
BayerCropScience.ca/InVigor or 1 888-283-6847 or contact your Bayer CropScience representative. Always read and follow label directions. InVigor® is a registered trademark of the Bayer Group. Bayer CropScience is a member of CropLife Canada.
Retirement Michael and Teresa can aim for retirement when he is 60 in ten years time. They can reduce the deferred tax on assets in their RRSPs by taking $1,000 per month from each of their RRSPs along with another $1,000 each from their taxable investment accounts. With those capital reductions, the tax payable in a decade would be no more than $1,000 per year for Michael and zero for Teresa, who will not be working, Forbes says. Both would apply for early CPP pensions. That would add another $700 in future dollars in 10 years time, rising after she applies at her age 60 to $1,200 per month in 15 years, Mr. Forbes estimates.
butions for each person and able and to give themselves and asset growth at 4.5 per cent per their children more secure lives. It year. At 65, Teresa can access her is a solution that makes a bad situTFSA balance, which will have ation good.” risen to $163,900. Withdrawals Not every farm can be saved, SBC12176.InVigor 10-25-2012 PM from the TFSAs will not be tax- 5:19Forbes says. “When the money is CALMCL-DMX8127 Cyan,is waverMagenta, Yellow, able, Forbes says. not there, when the will Sandra Menge By the time Michael is 70, ing, when scale and basic economSPEC ORIGINALLY GENERATED: Marianne None he and Teresa will be 100% receiving ics work against continuation of a 12.9167” x 8” SAFETY: None TRIM: 12.9167 a total of $30,850 in CPP and family farm, then it is time to face Helvetica Old Age Security in future dollars. up to the reality that makingNeue it LT Std (55 Rom They will be able to add $13,570 work would involve toil and risk in investment income and of loss in excess of expected gains. withdrawals, including TFSA cash In this case, the future of the kids flows, and $24,000 in Registered would also be at stake. So the Retirement Income Fund (RRIF) economics and the human side income for total income of $68,420. suggest that Michael and Teresa Their lifestyle expenses will be take the solution this analysis jusslightly higher, though they can tifies.” † easily cover the expected deficit of Andrew Allentuck’s latest book, “When Can I $1,700 out of capital, Forbes says. Retire? Planning Your Financial Life After Work,” The value of their estate will was published in 2011 by Penguin Canada.
NOVEMBER 12, 2012
grainews.ca /
27
Columns CAN’T TAKE THE FARM FROM THE BOY
A double life and the business of fall Newly transplanted from Toronto, Manitoba farmer Toban Dyck is leading a double life BY TOBAN DYCK
F
12.9167”
12.9167”
ull confession: I lead a double life, helping run the family farm and doing something completely different for the remainder of my time. Writing is my livestock, says my father, who, when he was taking over the farm, had cows and hogs to keep him busy and drawing an income over the winter months.
The bulk of the fieldwork is done for the year, capping a summer filled with steep learning curves, new environments and old relationships. The cultivator I have waxed poetic about in previous columns is now waiting for spring in the closest thing the farm has to a long-term parking lot, a straight line of implements parallel to the tree line. Farming, at this time of the year, becomes cerebral: watching the markets,
planning what crops the farm is going to grow next year, tracking the harvest in South America and, in my case, writing.
OFF-FARM CAREERS Many among the young farmer set also have professional careers that, on paper, have nothing to do with agriculture. And, in many instances these diversions are a good thing. In my case it’s too
12.9167”
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Bushels of smiles.
early to tell, but I am guessing that exercising the non-farming part of the brain (if there is such a thing) every once in while benefits the farmer and the farm similar to the way crossword puzzles are hailed to do to everybody. Writing forces me to think about different things in a different way and stay as sharp as possible, which I’m hoping will help stave off the potential dulling effects of our long, cold winters. And, I trust, staying aware of things in general will help me learn the business side of running a farm. I’m not yet making decisions of consequence on the farm, but I am observing that fall is when the farmer will start reflecting on what varieties yielded well, which crops to grow next season, and when the best time is to sell uncontracted crops; not to mention deciding which tractors or implements to repair or replace. The farmer must be sharp, and, at this point in my new career, I need the attention of all my available brain cells to learn to remember the important details of selling crops and making contracts. My dad and I chat at length and frequently, over coffee, about the crop market and what a farmer should watch for and whose advice is worth listening to. These considerations are more complicated than the average city slicker will likely ever know, and they require a mental acuity I hope to acquire over the next few years.
The big picture is starting to form, albeit slowly. I am starting to see context for why a selling-price fluctuation of $1.00 can cause a lot of stress. And I am starting to get a sense of all the costs that eat away at potential
A selling-price fluctuation of $1 can cause a lot of stress profit margins, though, like I said earlier, I am nowhere near knowing at what price my dad should sell his soybeans to make the most money. These are, I’m guessing, almost reflexive calculations for the seasoned farmer. I get nervous, in a good, manageable way, about keeping track of the all the input costs for each field. Fuel usage is not something I have ever subtracted from my gross, annual income, at least not in an obvious way. The business of running a successful farm is daunting for a newbie like myself. I am very happy my dad enjoys talking about these things and, so far, he doesn’t mind repeating himself now and then. Toban Dyck is a freelance writer and a new farmer on an old farm. Follow him on Twitter @tobandyck or email
[email protected].
To see how InVigor® hybrids are performing in your area visit: InVigorResults.ca
O-66-11/12-BCS12258-E
VigorWes.5.indd
ow,
SBC12176.InVigor.Wes.5 Grainews Insertion Date: November 12, 2012
Black
Bayer Crop Science PAGE: 1
BCS12258
12.9167” x 8” Bleed: None (55 Roman, 75 Bold; OpenType)
Production Contact Numbers: 403 261 7161 403 261 7152
Toban Dyck’s new home on the farm is a far cry from a downtown Toronto highrise.
The 2012 harvest at Toban Dyck’s Manitoba farm.
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NOVEMBER 12, 2012
Features FARM INVESTMENTS
Farmers of North America plan fertilizer plant Farmers of North America are assessing farmer interest in building a new fertilizer plant in Saskatchewan BY LEEANN MINOGUE
M
idway through a 50-stop information blitz with 18 meetings across the Prairies in seven days, Farmers of North America (FNA) appeared to see a strong show of support for its new project. The Saskatoon-based ag input buying group reports its farmer members have already bought more than 1,600 “seed capital units” — $1,000 investments in the early stages of a plan to build a nitrogen fertilizer plant in Saskatchewan. Mike Newlove, FNA’s fertilizer manager, said sales were going well. “Actually, a little better than we thought.”
On October 16, about 20 farmers gathered at the meeting FNA held in Weyburn. Most of the farmers at the meeting were FNA members, eager to learn more about what FNA calls “Project N,” the construction of a billion-dollar plant that would produce a million tonnes of nitrogen fertilizer per year.
have preferential treatment when shares are issued later. Money raised through the sale of these units “is not so much
“We’re not that concerned about long-term supply”
PROJECT N By selling seed capital units, FNA will raise the money to keep pursuing this project over the next six months. The units are only available to farmer members, and each member may only purchase 10, for a maximum investment of $10,000. Farmers who contribute now will
operating partner — an organization with the expertise to build and operate a fertilizer plant. While FNA has an operator in mind, they
— Bill Martin
a dollar figure as it is a show of strength,” said Bill Martin, FNA’s vice president of grain handing, marketing and transportation. FNA anticipates 20 to 25 per cent of the $1 billion in equity needed for this project will come from an
are not yet able to disclose the name of the potential partner. FNA expects this prospectus stage of the project to take about six months. Following that, it would take three years to build a plant.
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CANOLA PERFORMANCE TRIALS 2011 MEDIUM & LONG SEASON ZONES 104%
6060 RR
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Check1 1012 RR
94% 0
30
60
90
Yield 1
Because the project is still in the feasibility stage, there are few details. While the plant would be in Saskatchewan, FNA has not announced a specific location. As yet, there are no firm answers to the questions about logistics and distribution that FNA members asked at the Weyburn meeting. Some of the possibilities include partnering with independent crop input retailers for fertilizer distribution, or even having farmer members work together to build their own blending facilities. If you missed the FNA meeting held in your corner of the Prairies, Farmers of North America will have representatives at Agribition. You could also learn more about the project at the FNA website: www.projectn.ca.
2011 CPT trial average yield medium and long season zones. Yield responses on 6060 RR and 1012 RR only from sites where both varieties were present.
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In total, FNA estimates that about a billion dollars will be needed for this project. Of that, 20 to 25 per cent will come from the operating partner. The percentage of the project that could ultimately be owned by farmers would be determined based on farmer investment in the project. FNA says it hopes to raise $400 million to $600 million from Canadian farmers, with the rest of the financing coming from debt and institutional investors. FNA has partnered with BMO to work out the details. If the project does not go ahead after this six-month exploration, farmers’ investments in seed capital units will not be completely lost. Project N has been structured as a limited partnership, so losses will flow to individual farmers for tax purposes. FNA is also providing a $600 guarantee. If the project doesn’t go forward, FNA members can use $600 of their $1,000 investment toward future FNA membership fees or purchases. Martin cautioned FNA members at the Weyburn meeting, “This is pure risk capital. There are no guarantees that we are going to be able to pull this off.
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FNA is one of a handful of associations looking at building fertilizer plants in North America to take advantage of low natural gas prices and high nitrogen fertilizer prices. Others include CHS Inc., a major U.S. farmer cooperative with plans to build a plant in North Dakota; the Indian Farmers Co-operative, investing in a plant in Quebec; and the North Dakota Corn Growers Association, evaluating three U.S. sites. “We’re not that concerned about long-term supply,” said FNA’s Martin. “There’s a long-term shortage in the North American market.” FNA has just over 10,000 members across Canada; an annual membership costs $625. While FNA’s mission is “to improve farm profitability,” FNA is a privately owned, for-profit company. † Leeann Minogue is the editor of Grainews.
NOVEMBER 12, 2012
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Machinery & Shop THE FENDT LINE
Fendt’s North American Tractors Here’s a look at what Fendt brings to the Canadian ag equipment marketplace BY SCOTT GARVEY
I
have never seen a tractor manufacturer discuss zero to 60 acceleration times in its promotional material. That was, however, until I took an indepth look at what the Fendt brand had to say about its tractors. And there it was. “Zero to 60 kilometres per hour in 11 seconds,” the company proudly declared! Unique? Definitely. But then, unique seems to be exactly how AGCO, Fendt’s parent company, wants Canadian farmers to view Fendt tractors.
TRACTORS IN NORTH AMERICA At first glance, the Germanbuilt line of high-spec’d Fendts seems to have a lot in common with German car brands like Mercedes-Benz and BMW: Unashamedly offering a premium product that clearly won’t appeal to the majority of consumers. But that’s where any similarity ends. Unlike those cars, Fendt executives believe the features their pale green tractors offer will
more than pay for themselves under the right conditions. So far, the company is offering three model lines of tractors in North America, the MFWD, rigid-frame 700, 800 and 900 Series, which span the range from 130 to 360 engine horsepower. All of which come standard with the company’s CVT transmission called the Vario. The company’s position is that shifting gears is a “burden” on drivers and the Vario step-less transmission design eliminates that. Today, the Vario is your only choice for transmissions on a Fendt. AGCO has also made the same basic transmission an option on its Massey Ferguson and Challenger tractor brands. The high-speed capability of Vario transmissions is coupled with standard front-axle, cab and seat suspensions to smoothen out the ride, even at road speeds. Unlike almost all of AGCO’s other tractors, the Fendts will continue to use something other than the company’s own AGCO Power engines. These tractors use Deutz diesels, which are said to be engi-
neered specifically to work with the Vario transmissions. The Fendt Variotronic integrated tractor management system provides one seamless system for auto guidance, implement control, data capture (with Bluetooth connectivity), camera displays and a headland management system. The built-in GPS guidance system is also compatible with the Russian Glonass and the planned European Galileo system. And it works with a variety of correction signals, including RTK. Being a European born-and-bred brand, the Fendt Variotronic system is also highly compatible with ISOBUS implement control systems.
500 SERIES TRACTORS When Fendt invited members of the North American media to the opening ceremonies at its upgraded Marktoberdof Germany factory in late September, it also gave us a preview of the all-new 500 Series tractors that it will eventually make available in Canada and the U.S. “They’ll make a nice complement
SCOTT GARVEY
Along with the grand opening of Fendt’s upgraded Marktoberdof Germany assembly plant, the company introduced the all-new 500 Series line of tractors. They will eventually be available in Canada. to the larger 700, 800 and 900 Series tractors,” says Reid Hamre, Fendt’s North American brand manager. The four-model, 125 to 165 horsepower 500 Series tractors offer a short-wheelbase design on a compact chassis, making them ideal for front-end loader work. And the company also introduced a matching “Profi” loader. It, too, is loaded with high-end features, like hydraulic lift-height pre-set controls that allow the operator to bring the bucket up to a pre-set position with the push of a button. And the loader has a built-in load sensing feature, giving the operator a readout of the amount of weight in the bucket. This could be a handy feature for livestock producers who blend feed mixtures on the farm. The 500 Series tractors will also
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use the same Variotronic tractor management systems their bigger brothers use. Creating a consistent control layout throughout the different ranges. But Hamre emphasizes it will take a while before 500 Series tractors hit Canadian shores, despite the fact European versions will begin production in November. “It will be at least several months,” he says. The reason is that standardized specifications for ag equipment in Europe are different than those in North America. “Even down to the direction of rotation of the front PTO shaft,” Hamre adds. For another look at the new 500 Series tractors, watch the vido at www.grainews.ca/videos. †
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NOVEMBER 12, 2012
Machinery & Shop INSIDE THE FACTORY
Fendt expands its tractor assembly plant AGCO’s Fendt brand opened the doors to its all-new, high-tech assembly plant in Bavaria and invited the public to take a look BY SCOTT GARVEY
F PHOTOS: AGCO
Fendt tractors are now built on an ultra-modern assembly line in same factory in Marktoberdof Germany that has been home to the brand since the company built its first diesel tractor in 1930.
armers in Western Canada can be forgiven if they don’t know a lot about the Fendt brand of tractors; they’re thin on the ground in this part of the world, to say the least. “Fendt tractors are a true premium product,” says Reid Hamre, North American brand manager for Fendt. “They’re for the customer who is looking for more than the ordinary in their farming operation and wants a tractor that will make their labour productivity higher, their fuel efficiency higher and the amount of work they can get done in a day greater.” Fendt — originally a familyowned German company — was
acquired by AGCO in 1997 and has been part of that company’s line up in North America for a few years, but recently AGCO has been driving hard to make all its marquees more dominant forces on this continent. In that effort, Fendt will play an important role as the company’s flagship brand in the premium, highly-optioned tractor marketplace. AGCO has decided to build on Fendt’s long-held reputation as the Cadillac — or should I say BMW — among tractors (they’re built in the Bavaria region of Germany, too). But that doesn’t mean these machines are all about conspicuous consumption. Just the opposite. Hamre says the company believes the high-end features and
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MANUFACTURING To help farmers in the U.S. and Canada understand what the brand has to offer, AGCO is increasing its brand-specific marketing efforts in an attempt to make the Fendt name truly a household word. But there is no point in doing that if you can’t supply enough tractors to meet demand, a problem that previously plagued all of AGCO’s tractor brands. And that is the reason behind the company’s $300 million investment in a state-of-the-art expansion to the Fendt tractor assembly plant in the small, Bavarian community of Marktoberdorf. “It all started three years ago,” said Hubertis Köhne, vice president of manufacturing, during the grand opening ceremony of the new tractor assembly line on September 27. “We decided we couldn’t meet our future goals with the existing plant.” And those goals include taking a bigger bite out of the North American tractor market. “This expansion will allow Fendt the option of increasing (production) capacity to 20,000 or 21,000 tractors per year from the previous 14,000 or 15,000,” explains Hamre.
“Fendt tractors are a true premium product” — Reid Hamre
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The new expansion to the Marktoberdorf assembly plant added 85,000 square metres to the facility, more than doubling its original footprint. Using a just-in-time philosophy, components arrive in the correct sequence for installation on tractors moving down the onekilometre-long assembly line. And all Fendt tractors are built on the same line, giving the company the kind of flexibility necessary to meet any rapidly changing market demands. Cabs are built at Fendt’s other facility about 120 kilometres away in Bäumenheim and installed on the correct chassis in the new Marktoberdorf plant. The new assembly process involves a lot of automation. For example, tractors move down the assembly line on automated, unmanned carts that transport the chassis as far as the wheel installation station, after which tractors begin to move on their own and the carts return to the start of the line to pick up a new chassis. Aside from passing through a variety of “quality gates” along the line for inspections, five tractors are now pulled aside after completion each day for an extensive quality control check. In addition managers meet with
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Machinery & Shop
Company executives claim the assembly line uses some high-tech technologies that haven’t Fendt marketing staff went out of their way to emphasize the efforts taken to maintain quality yet even been adopted by the major automakers. Here, a worker installs wheels on a tractor control along the new assembly line. This tractor is entering the final inspection station before using a lift designed specifically for the job. being let out the factory door. various line supervisors in the assembly area three times a day to ensure quality control targets are being met, which enables a quick response to any problems that might arise. “What this means for the North American customer is they can get their tractor sooner and with an even higher degree of quality than they experienced in the past,” says Hamre. “This is the most stateof-the-art factory you can find in almost any industry. The quality (control) programs they will be able to establish with the new technology are just phenomenal.”
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Factory pride Many North American ag equipment factories operate in relatively small, rural communities, and the Marktoberdorf plant does too. Management there says many of the line workers are farmers themselves, so they feel a real association with the tractors they build. Walking through the plant and chatting with workers (those that spoke English), many seemed very proud of the tractors they help create. Just as with the front line workers, there was an obvious sense of pride among senior management as well. As he addressed journalists during a press conference, AGCO CEO Martin Richenhagen summed up how he feels about the new Fendt plant. “There is now the second most beautiful building standing in Marktoberdof after the new gothic castle of Kind Ludwig II. I, personally, think it (the Fendt factory) is more beautiful. It’s a great place for us.” By the time of the grand opening ceremony, the new assembly line had been in operation for about three weeks. The celebration was much more of a bash than I’ve experienced at any similar event at a North American plant. During the two days of festivities and briefings that members of the media were involved in, I can’t recall exactly how many musicians I saw, but there were a lot. One other journalist commented, “They must have hired every band in Southern Germany.” I had to agree with him. For a look at the factory’s grand opening ceremony, check out the e-Quip TV video at www.grainews. ca/videos. †
Ask yourself… Are you the type of person who recognizes that price is negotiable but value is not? Do you want a tractor that delivers high, consistent performance throughout the year–not just during a wet Spring? Do you want a cab that’s comfortable, reƟned and well-equipped, and a tractor that has the horsepower to get through a tough day of Ɵeld work? Do you Ɵnd value in a dealer network that supports both the iron and the technology, because you’d rather be in the Ɵeld than waiting on parts? Finally, ask yourself this … when the day comes, and you’re ready to trade your 9R/9RT in for a new John Deere 4WD, would you prefer that your investment not lose a signiƟcant portion of its value? It takes a special person to own a 9R/9RT. If you base your buying decision on quality, cost of ownership, strong dealer support and high resale value, then call your John Deere dealer today and ask to test drive a John Deere 9R/9RT Series Tractor. Because Nothing Runs Like A Deere.™
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Scott Garvey is machinery editor for Grainews. Contact him at Scott.Garvey@fbcpublishing. com.
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Machinery & Shop MACHINERY
700 series tractor rounds out the Fendt family Improved fuel efficiency and operator comfort are key features in Fendt tractors in all horsepower ranges BY LEE HART
F
or a custom-farming operator to be using 10 tractors of the same make for 10 years, it has to be some indicator of his confidence in the quality and performance of the equipment. That’s been Alberta farmer Ludze Holtrop’s story with Fendt tractors over the past decade. Holtrop, who began custom farming in 2002, actually runs 15 tractors in his custom farming business, based near Lacombe, Alta. There is John Deere, Case IH, Klaas and Massey equipment in his machinery lineup. But the bulk of the field work, that includes dry and liquid manure spreading, air seeding, corn planting, silaging, mowing, raking, swathing, baling, packing and even dirt moving is performed by a fleet of 10 Fendt tractors (Find more information about the Holtrop farm at www. holtrop-enterprises.com). “Back in the day, when I first bought Fendt I was interested in their road speed and their fuel economy,” says Holstrop, who in mid-
October was just finishing the last of his custom baling for the year, but still had tons of manure and compost to spread. “ But after owning one for a while I realized there were plenty of other features too.”
“We put in long days and there no where near the driver fatigue when operating a Fendt compared to other makes. And that is a big feature. They are comfortable and easy to use. They also come with PHOTOS: LEE HART
Carlton Self, of AGCO says improved fuel efficiency is just one part of the Fendt tractor package.
“You have to consider all the features that come as standard equipment” — Ludze Holstrop
FENDT FEATURES Road speed and fuel economy are still important features for Holstrop as he has equipment traveling from field to field over a large area of central Alberta. But, Holstrop says he appreciates the package of technology, as a well as the comfort features of Fendt. He has all 800 and 900 series tractors with horsepower ranging from 200 to 333 hp. “It is a make that is so well suited to custom farming,” says Holstrop.
technology such as GPS and other features which are all necessary in farming today.” From a performance and fuel economy standpoint, he likes Fendt’s continuously variable transmission (CVT). “The CVT is a standard design feature and you can switch from one job to another, or different field conditions and the tractor is in the right gear no matter what the job,” says Holstrop. For road travel, he says Fendts can comfortably run at 50 kilometres per hour (30 miles per hour)
compared to other makes which top out at 20 to 25 m.p.h. “And at 25 m.p.h they are completely revved up and at high fuel consumption,” he says. “Whereas with the Fendt at 30 m.p.h. it is running at 1,700 r.p.m. with better fuel economy.” Holstrop says he also appreciates the good dealer support like he receives from Pentagon Farm Equipment in Lacombe. “Some people may think Fendt are more expensive than other tractors, but you have to consider all the features that come as standard equipment,” says Holstrop. “With other makes those features are all extra. And when you add in the improved fuel economy, in my view Fendts are less expensive than other tractors on the market.”
NEW 700 SERIES Holstrop was one of hundreds of farmers participating in events during Fendt field days held at Lacombe in central Alberta in mid-July 2012. The German-based company (part of the AGCO group) holds a major field day in Germany every two years. Now in the North American market for the past 10 years they are holding similar field days to showcase equipment here. The Lacombe event was the first field day in Western Canada and it was also an event to launch Fendt’s new 700 series tractor. The 700 series fills the 100 to 195 PTO horsepower gap in the Fendt lineup of tractors, says Carlton
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Machinery & Shop
The new 700 Fendt tractor series offers farmers engines ranging from Here are three of the 10 Fendt tractors in the fleet used by custom farming operator Ludze Holtrop. 110 to 195 horsepower. Self, product marketing specialist. All the features of operator comfort, performance technology, and fuel efficiency are included in the 700 series, which is compliant with current Tier 4 engine emission standards. “We had Tier 2 standards in 1980s, then Tier 3 in 2000 and now our engines starting in 2011 are Tier 4 compliant,” says Self. “Power is important, but perhaps more important are engines with improved fuel efficiency, that are also cleaner burning. Fortunately this technology goes hand in hand to offer farmers a more fuel-efficient tractor that puts more money in their pocket, but cleaner burning fuel also adds to the longevity of the tractor’s engine life. It is a nice combination.” The 700 series, powered by a Deutz 6.06 litre, six-cylinder turbocharged engine, is intended as a good chore tractor for hauling manure, baling hay, or hauling silage, and comes with a wide range of design and performance features. With the CVT design and Fendt’s Tractor Management System, engines are able to operate on an average 5.3 gallons of fuel per hour, providing a savings of up to five gallons per 10-hour day.
hp. And there is no excuse for not hooking up to implements as the 700 series offers 22 equipment connections including six rear and two front double-acting hydraulic valves, factory installed front and rear three-point hitches and full ISOBUS connection. Inside the cab, the Fendt
Variotronic control allows the operator to direct all tractor and implement controls, camera functions, operation documentation and the automatic steering system using the 10.4-inch touch-screen terminal. It can display up to four applications, including video camera inputs, simultaneously.
into ergonomics. It is not just a comfortable seat. Every effort has been made to reduce arm and hand movement so at the end of a long day, there is less operator fatigue.” †
“Fendt engineers put in thousands of hours to ensure these tractors are properly designed to be reliable and versatile,” says Self. “The engines are fuel efficient, but the tractors have many other efficiencies as well. You look at the design of the cabs and the controls and a lot of thought has been put
Lee Hart is a field editor for Grainews in Calgary, Contact him at 403-592-1964 or by email at
[email protected].
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EASY TURNING The 700 series features the halfframe design, which means a much tighter turning radius, says Self. The front axle can carry up to 12.5 tons and turn at a 52-degree angle. Along with the tighter turning radius, the tractor also features Fendt’s VarioActive steering system. The design means fewer revolutions of the steering wheel to make a turn — not only faster, but one of the items that reduces operator fatigue. One turn of the steering wheel equals 43.3 degrees of wheel turn, versus 26.6 degrees without the VarioActive system. The tractor has a very comfortable full suspension cab, complete with buddy seat. It is a climatecontrolled, five-post cab design with vertically panoramic front windshield, a full-length right-hand window, and 77 degrees of upward visibility, which is very handy when using the front-end loader. For higher speeds and road travel, Fendt provides a stability control feature that kicks in at speeds over 12.5 m.p.h. The stability control locks the differential and dampens side-to-side movement to ensure maximum stability at higher speeds. The feature automatically disengages at lower speeds. The well-built 700 series tractor weighing 17,416 pounds, can handle up to 39,600 pounds of gross weight, which translates into a power-to-weight ratio of 72 lbs./
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Machinery & Shop TRACTOR EVALUATION
Reviewing the Fendt 714 Vario One Manitoba farmer is happy with his choice to use Fendt tractors BY SCOTT GARVEY
E
rn and Monica Pethick of McAuley, Manitoba, were looking for something out of the ordinary when they purchased their first Fendt 714 Vario tractor about four years ago. A back injury suffered many years ago meant bouncing around in a tractor could be pretty uncomfortable for Ern, so the suspension systems on Fendt-brand tractors that offered a smoother ride really appealed to him. “Allister, our son, said ‘why don’t you buy a Fendt?’” remembers Ern. “You have a suspended front axle and a suspended cab.”
THE FENDT BRAND The Pethick family was aware of what the Fendt brand had to offer. Until 1999 they farmed in the Cornwall area of southern England. There, a local custom contractor they knew used Fendt tractors exclusively, and a family friend had a Fendt dealership. “We didn’t really want to buy a new one,” says Ern. So after shopping around, they bought a 2001, 714 Vario. Ern immediately noticed the difference in ride quality compared to the more common tractor model they traded in on it. “Compared to a normal tractor, it was out of this world,” he adds. “It was just like riding in a half-ton truck. That was the reason we bought a Fendt, really.” Four years and over 2,000 operating hours later, the fam-
PHOTOS: SCOTT GARVEY
Ern Pethick and his family farm near McAuley, Manitoba. They’re currently operating their The 145 horsepower Fendt 714 Vario offers a suspended front axle and cab, which Ern Pethick thinks second Fendt 714 Vario tractor. makes the tractor ride like a pickup truck, even at high speeds on rough roads. ily decided to upgrade to a new 714 Vario. It arrived on the farm near the beginning of August. Now with about 150 hours on its clock, Ern and his family are equally impressed with their newest 145 horsepower machine. But it was a more expensive purchase than a popular model from another brand
would have been, which is to be expected given the list of standard equipment and options most Fendt tractors come with. “I’d say (it cost) 15 to 20 per cent more,” says Ern. But it may retain some of that extra value when it comes time to trade up again. “The other one we swapped back, we got nearly
what we paid for it. They hold their value really well.” The new 714 Vario is being put to a variety of mixed farming chores, ranging from loader work, to powering a round baler and field sprayer. According to the Variotronic tractor management system, average fuel consumption so far stands at 2.7
gallons per hour. Assuming a diesel fuel price of $1 per litre, that’s a modest operating cost of $10.26 per hour. “Cost-wise, per hour that one is cheaper to run than most other things we’ve ever had,” says Ern. “Fuel-wise this new one is out of this world (good) on fuel.” He believes the low
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Machinery & Shop operating costs and expected trade-in value will mean the new Fendt’s overall cost to the farm will be comparable with any other model — and he’ll have the advantages offered by the tractor’s added features. “I think when all is said, if you kept it on a five-year term, you’d come out as good or ahead,” he says. “It’s just that initial outlay,” adds Monica in agreement.
SOURCING PARTS Buying the farm’s first, used 714 Vario and sourcing parts for it has required more than just driving to a dealership in the nearest town. Ern used the internet to find the tractor. It was purchased from an Alberta dealer, the same one that has since supplied their new tractor. The family has also continued to source parts and maintenance items from the same dealer. “We just ring (them). They put it on the bus and it’s here the next day,” he says. But the first 714 Vario required hardly any service, needing only a cab fan bearing and a fuel pump shortly before it left the farm. One of Ern’s sons is a heavy-duty mechanic, and after the dealership faxed a service manual schematic, he was able to install the replacement pump. In his experience, though, Ern hasn’t been able to source Fendt filters from his nearest AGCO dealers. “That’s the only thing,” he says. “You’ve got to go to the Fendt dealers for filters. The other AGCO dealers, like Massey Ferguson dealers, can’t source those parts. I’ve taken filter numbers to (the local MF dealer) and they tried but couldn’t get them.” The Pethicks keep their own stock of filters and have copies of the necessary service manuals. “We have the actual workshop manual on the computer,” says Monica. “And it will tell you the (trouble) codes.” Whenever a trouble code appeared on the first tractor’s monitor, they could look it up at home and know what’s required to clear it. But those instances have been few and far between.
Both Fendts have been comfortable tractors to operate And while both Fendts have been comfortable tractors to operate, the family finds the new Variotronic system complex to learn. A criticism others have offered about it. However, once they get onto it, Ern expects the system will provide a lot of benefits even their first Fendt didn’t offer. The high level of ISOBUS compliance offered by the Variotronic system should provide easier and more efficient control for implements like the family’s Vermeerbrand round baler. After putting 2,000 hours on their previous 714 Vario and getting used to their brand new one, the family is more than satisfied with both tractors so far. It was a nice bonus afor Ern that the new 714 Vario, the first brandnew tractor he’s ever purchased, arrived on his 60th birthday. Happy birthday, Ern. † Scott Garvey is machinery editor for Grainews. Contact him at
[email protected].
The Pethick family finds the guidance feature of the tractor’s Variotronic system difficult to learn, but they expect the features it offers to be superior to other tractors on the farm.
The easy steps and wide cab access door make this one of the easiest tractors on the market to get in and out of.
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Canada’s Outstanding Young Farmers BC/Yukon
B.C./Yukon’s outstanding young farmers The Tuytels focus on efficiencies and family By Lee Hart
A
fter going through a farm expansion phase over the past few years, Peter and Nicole Tuytel of Chilliwack, B.C. are looking to fine tune efficiencies on their dairy operation, and also maintain time in their day for raising a young family. Those are the priorities ahead over the next few years for the B.C. couple who earlier this year were named B.C. and Yukon regional nominees for Canada’s Outstanding Young Farmers program. “We have the size of dairy operation we want for now,” says Peter. “We have had a fair bit of growth in our farm in the past few years. So now we will look at ways to increase the efficiency of our operation, and
with a young family (Caitlyn, six, and Braydon, two) we need to make time for them as well. As everyone tells us, they grow up so fast.” The Tuytels own and operate Elmbridge Farms in B.C.’s Lower Mainland. They own 125 acres, and are milking about 120 head, three times a day. Their total herd including dry cows and replacement heifers is 300 head of registered Holstein cattle. About 30 head are red and white Holsteins while the rest are black and white, and there are four Jersey cows in the herd as well. Both Peter and Nicole were born and raised on dairy farms. Peter grew up on a farm at Chilliwack. He was also in the poultry business, producing broilers for about 12 years. Six years ago they bought the farm they are on today. They sold the broiler business and decided to
focus on expanding and improving the quality of their dairy herd. The Tuytels have focused on improving the genetics as well as the production side of the purebred dairy operation. Peter was named a Master Breeder by Holstein Canada in 2011 — a designation that recognizes at least 15 years of superior dairy cattle breeding. “We concentrate on the genetic side of the operation,” he says. “We’ve always been a purebred operation and we like seeing the quality of cattle improve from one generation to the next. Our passion has been to use genetics to make breed improvements.” T h e i r m o s t f a m o u s c o w, Elmbridge FM Loveable, a two-time Canadian national champion, is actually a cross of Peter’s maternal line with Nicole’s paternal line.
The Tuytel family of Chilliwack, B.C. From left, Peter, Caitlyn,six, Braydon, two, and Nicole. It was named the best bred and owned cow in the red and white Holstein show at the 2011 World Dairy Expo. At the 2012 World Dairy Expo, Embridge FM Loveable
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won the Produce of Dam class and also had award-winning daughters in the show as well. Improved genetics along with improved management have combined to significantly improve herd performance over the past 10 years, says Peter. A big part of that involved moving to improved dairy facilities six years ago. The original farm was an older tie-stall barn, whereas the current location at Chilliwack is a more modern free-stall operation, with a doublesix herringbone milking parlor. “As a purebred operator the tiestall operation was nice as it was much more hands on and you had more direct contact with the cattle,” says Peter. “But at the same time we are also involved in commercial milk production and the milking parlour made it possible for us to expand our milking herd.” Along with the barn itself, the Tuytels also introduced a total mixed ration (TMR) feeding system, dividing the herd into two TMR rations geared for high producing cows in early lactation and lower producing cows in later lactation. Two years ago they also switched to three times a day milking. “A number of things have significantly improved herd performance,” says Peter. “Ten years ago our milk production was at about 25 kilograms/head/day whereas today we are at 43.6 kilograms/head/day.” Improved genetics, an improved feeding program with a TMR and properly balanced ration, comfortable free-stall housing, and milking three times a day all factor in to improved performance. The Tuytels employ two full-time workers who help with the feeding and milking Peter says there are no plans to expand the milking herd over the next few years, although they will work on improving genetics, and also in improving production efficiencies. “One thing we consider is eventually moving to a robotic milking system,” says Peter. “The technology has improved considerably, and the amount of information these systems can provide which assist you in overall herd management is incredible. We still want to be very hands-on managers and maintain that connection with the cattle, but at the same time it is a tool that can improve management efficiency. “We had quite a bit of growth and change over the past few years, so now we feel it is time to focus on some efficiencies. And with a young family, it is important that we have the time to enjoy that as well.” † Lee Hart is a field editor for Grainews in Calgary, Contact him at 403-592-1964 or by email at
[email protected].
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Canada’s Outstanding Young Farmers ALBERTA/NWT
Alberta / NWT’s outstanding young farmers Personal development helped the Semeniuks build their farm business BY LEE HART
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arm more acres, expand the custom-fertilizer application business, or perhaps look at other options. Those are some of the choices ahead for Alberta farmers Robert and Angela Semeniuk, as they look at where their farm business is headed over the next five years. Strong commodity prices are keeping land prices high, and there also appears to be growing demand for more custom farming services, say the Semeniuks, who farm near Smoky Lake, northeast of Edmonton. “We definitely want to see the business grow,” says Robert. “But perhaps our goals have changed a bit. Changes in the marketplace which have driven up land prices have made us stop and think about our best options. I think all farmers today are faced with the same issue. High land prices are good on one hand, but at the same time what makes good business sense if you want to expand?” Robert and Angela, and their young family, are the fourth generation on the Semeniuk grain and oilseed farm. Earlier this year, they were named Alberta/NWT regional nominees for Canada’s Outstanding Young Farmer Program. Robert was born and raised on the farm. In the early 1990s he started with 56 acres and 11 head of beef cattle of his own. Today, the cattle are gone, but he and Angela crop about 3,500 acres of wheat, barley, canola, peas and oats. And, since 2009 they have been expanding their custom fertilizer application business. “Robert has always been involved in some custom work,” says Angela. “When he was farming with his dad, they did some custom spraying.” Four years ago they bought one floater for custom applying dry fertilizer. Demand for services was so great the first year, they bought a second floater as well as a truck for hauling fertilizer. The past couple of years Robert has custom spread fertilizer over about 25,000 acres and this year, if the weather held, he was hoping to bump that by about 40 per cent. “We’re aiming to do about 35,000 acres,” Robert says. Along with being involved in the farm, and looking after the household and family that includes Gabrielle, six, and Tristan, four, Angela relies on her accounting background to provide consulting and bookkeeping services to clients. “I think the biggest step we’ve taken is in our own personal development,” says Robert. “We’ve taken the time to figure out who we are as people, and to look at what we want, and what we can manage.” An important part of that analysis involved participating in the CTEAM (Canadian Total Excellence in Agricultural Management) program offered through the George Morris Centre in Ontario. “It is a very detailed farm management program that forces you to look at your operation and your skills, and your goals,” says Robert. “Through the financial management side of it we learned to treat our whole
operation as a business, and that was a major factor.” “The whole process really makes you look at yourself,” says Angela. “And that really gave us a push to develop our farm business as a business and become a viable operation.” Those same skills will be applied as the Semeniuks look ahead to the next phase of business development. The Semeniuks are collecting data that will be useful as the farm moves toward variable rate technology. Along with yield data, they also had their land scanned or mapped with “Veris-type” technology which uses soil electrical conductivity (EC) to correlate with soil properties that affect crop productivity. “We plan to start slow with vari-
able rate technology in 2013, and with our detailed record keeping system we should be able to properly evaluate it,” says Robert. Along with farming the Semeniuks are also actively involved in a number of school, community and municipal committees and boards. “It is important that we continue to push forward, continue to work on ourselves and our own development, and keep on learning,” says Angela. “We certainly don’t want to stagnate,” says Robert. “We need to keep the business growing, even if it is just slowly, but take steps that make good business sense.” † Lee Hart is a field editor for Grainews in Calgary, Contact him at 403-592-1964 or by email at
[email protected].
The Semeniuk family of Alberta: Angela and Robert with their children Gabrielle, six, and Tristan, four.
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Canada’s Outstanding Young Farmers
Atlantic region hosts 2012 OYF event
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ome of the brightest young minds of the Canadian agriculture industry will be meeting in Charlottetown, P. E . I . , l a t e r t h i s m o n t h a s regional nominees from across Canada gather for the national awards event to select Canada’s Outstanding Young Farmers. The seven regional finalists, representing all parts of the country and a wide range of farming enterprises, will gather November 27 in Charlottetown, as the Atlantic Canada OYF region hosts this year’s event.
Regional finalists for 2012 include: Mark and Sally Bernard, organic grain growers from Freetown, P.E.I.; Martin Brodeur Choquette and Johanne Cameron, sheep producers who farm near St. Hyacinthe, Que.; Cory and Heidi Van Groningen of Cayuga, Ont., beef producers involved in a family-run pasture-to-plate operation; Dustin and Laura Williams, grain and oilseed producers at Souris, Man.; Sue Echlin and Vance Lester, who operate a winery near Saskatoon, Sask.; Robert and Angela Semeniuk,
grain and oilseed producers from Smoky Lake, Alta.; and Peter and Nicole Tuytel, dairy farmers near Chilliwack, B.C. After four days of presentations and interviews, local tours and socializing with each other as well as OYF alumni, two of the regional nominees will be named as Outstanding Young Farmers for 2012 at the awards ceremony, Friday, Nov. 30. The OYF program was established in the United States in 1954, and was introduced in Canada in 1979. The first
national awards event was held in 1980. Each year, regional OYF organizations select regional finalists who then compete in the national competition. The program is designed to recognize young farmers that exemplify excellence in their profession. Nominees must be between the ages of 18 and 39, and derive at least two-thirds of their income from farming. A panel of leading agricultural industry judges will evaluate the regional nominees on five key areas — progress made during their
farming career; maximum utilization of soil, water and energy conservation practices; crop and livestock production history; financial and management practices; and contributions to the community. Canada’s Outstanding Young Farmers Program is backed by four national sponsors — Agriculture and Agri-Food Canada, Bayer CropScience, CIBC and John Deere. These partners provide vital resources to run the program. As well OYF also receives support from AdFarm and Farm Management Canada. †
SASKATCHEWAN
Saskatchewan’s outstanding young farmers Vance Lester and Sue Echlin turned a dream into successful fruit winery BY SHIRLEY BYERS
S
ue Echlin and Vance Lester, 2012 winners of Saskatchewan O u t s t a n d i n g Yo u n g Farmers award, seem to have found the perfect blend of passion and practicality. Some might say establishing a winery on the Prairies is an act of pure passion, and more than a little risky. But Living Sky Winery, opened in 2010, has already won 12 national and international medals for its wines. Echlin and Lester have been included in Western Living magazine’s “Top 40 Foodies Under 40,” and they’ve been finalists for the ABEX award for “Best New Venture.” And along the way, they’re having a wonderful time. It all began on a wine tour in British Columbia. “We’d gone to all the usual grape wineries and they were awesome,” says Sue. “And then we ended up at one called Forbidden Fruit — nectarine, apple and pear — and it was amazing. And we thought, ‘Why can’t we do that in Saskatchewan?’ So, now we are!”
Back in Saskatchewan, they already had a farm, a quarter section near Perdue, 65 km west of Saskatoon, which they’d planted to hay while they looked for something that would allow them both to work full-time on the farm. In 2005, they planted their first fruit. Today, they grow and
They’re having a wonderful time make wine from cherries, rhubarb, black currents, raspberries and haskap (a berry) in a 10 acre orchard which they plan to expand by two to four acres. They located the orchard by a large pond for the rare times they need to water. “We’re not certified organic, but operate as if we are,” says Sue. They purchased the old Co-op store in a nearby town, and completely retrofitted it into a CFIA inspected facility with tank space
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for about 11,000 litres of wine at any one time. Production reached 18,000 litres in 2012. “We’ve been lucky in that my background is in marketing and Vance is a biologist by training, so we had a bit of an inside track at the start,” Sue says. “We worked closely with the government to make sure we were doing everything correctly, visited as many wineries as we could, talked to other wine folks… and of course, hired Dominic.” In fact, hiring Dominic Rivard, a world-renowned fruit wine consultant was the very first thing they did, even before they began planting trees. “We figured we could make bad wine for two years while we figured it out and then go broke, or we could make amazing wine right off the bat with Dominic’s help,” says Sue. Sue is in charge of marketing, while Vance is the operations manager. But in practice, they say, they both do a bit of everything, with the help of seasonal part-time employees during fruit harvest. So far, social media is their main marketing tool, and it’s
Vance Lester and Sue Echlin turned a dream into successful Saskatchewan fruit winery. been remarkably successful. They sell at the Saskatoon and Regina Farmers’ Markets and their products — table and dessert wines and ciders — are carried by a number of restaurants and sold from the winery.
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That blend of passion and practicality is also reflected in their business philosophy: “With everything we do we consider the impact on the environment and on our community. We reduce, reuse and recycle. We care not only for our orchard, but for the environment that surrounds it, whether beast, fowl or flora. We believe ardently that local foods and services contribute to the community in a positive way, and try to purchase everything we can from our friends and neighbours. We also believe that life is bloody short and you’d better enjoy every second of it!” What contributes most to their success? “Vance would say, ‘our aversion to pain,’” says Sue. “We can push ourselves pretty hard to get stuff done. But we also work smart. Lots of strategic planning goes a long way.” There have been challenges along the way. Wine making is a new and highly regulated industry in Saskatchewan, and like any farming enterprise, fruit growing is affected by weather. Nevertheless, the future looks good. Two years in, Sue and Vance are already at the five-year part of their five-year plan. “We are taking the winter to reassess who we want to be when we grow up,” says Sue. “There definitely will be growth and expansion; we just have to figure how, and how much.” † Shirley Byers is a freelance writer based in Sasktachewan.
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Canada’s Outstanding Young Farmers MANITOBA
Manitoba’s outstanding young farmers The Williams test innovative ideas in the field BY ANGELA LOVELL
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reativity, attention to detail and teamwork are the main reasons Dustin and Laura Williams are holding the title of Manitoba’s Outstanding Young Farmers for 2012. Dustin is a fifth generation farmer who, after completing the agricultural diploma program at the University of Manitoba, came back to farm full time with his wife Laura in 2001. The Williams currently farm 4,200 acres near Souris, southwest of Brandon. It is a grain-growing region, where high land prices can present a challenge for younger farmers wanting to expand. At the same time there are plenty of farmers approaching retirement, which means there are opportunities for younger farmers like the Williams. “We are working with some land owners in the area to create a new arrangement between the landlord and ourselves for a long term profit-sharing contract,” says Dustin. “We want to be able to farm the land without having to take on the debt of buying all those acres. I don’t have to own everything I farm. I think I can look after the needs of the retired farmer and still farm for ourselves too.” Laura, who is also a lawyer and works full time off the farm, forms the other part of the team. Her perspective is an important part of the decision making process. “She provides the insight into what we need to consider to make these new ideas work,” says Dustin. “We function as a team.” The gradual expansion of the farm has meant embracing new opportunities and ideas, says Dustin. “This has been a traditional wheat and canola growing area, but we are paying attention to climate change and its effects on agriculture in Canada,” he says. “We are moving our crop rotation to crops that are more stable in warmer conditions, such as corn and soybeans.” The Williams have made a number of changes that have contributed to the growth and success of the farm. In particular they have paid much closer attention to the nutritional needs of their crops and soil health. Seeding cover crops and using seed-placed micronutrients, for example, have helped reduce their use of supplemental nitrogen and phosphate. “Before we would just take recommendations from the agronomist and apply the macronutrients,” says Dustin. “Now we are much more focused on the micronutrients and overall soil heath. We have cut our nitrogen rates probably by 20 to 30 per cent over the last five years.” Environmentally sensitive areas along a river and creek that pass through the farm are protected by buffer zones and by preserving water runways. “We make decisions on any products we use from an environmental standpoint, first,” says Dustin. As an example he uses only liquid nitrogen, which although bulkier and more expensive than anhydrous ammonia, he believes has less of an environmental impact on the land. The Williams hope to eventually incorporate more renewable fuels
into their farming operations and are looking at building their own small-scale, on-farm bio-refinery. The farmhouse, outbuildings and workshop are already heated by an outside wood boiler. They plan to use renewable fuels such as pellets or straw bales as the energy source for a new grain drying facility. The Williams are sequestering carbon through a system that injects tractor exhaust back into the ground during seeding operations. Although not completely perfected yet, Dustin estimates that it’s putting 20 to 30 pounds per acre of nitrogen back into the soil with every pass. “We are reducing our nitrogen rates accordingly and not seeing a decrease in yield or protein levels in our crops, so we think there is some credible promise for this system,” he says.
The Williams consider a wide range of opportunities. They grow some identity preserved crops and are looking into vegetable production. They are also investigating new ventures like aquaculture. The family’s goal is to achieve a stable land base and create a farm operation with a low environmental footprint that respects nature, but doesn’t lose sight of economics. They want to create a sustainable farm business that provides for the family now and foreseeable future, but will hopefully remain a viable operation if their two young daughters — Ardyn, five, and Eva, 15 months — decide to follow in their parents’ footsteps. † Angela Lovell is a freelance writer, editor and communications specialist living and working in Manitoba. Find her online at www. angelalovell.ca.
Laura and Dustin Williams on vacation with daughters Eva, 15 months, and Ardyn, five.
Enabling rural succEss. UFA is a thriving, progressive co-operative with a passion for agriculture and rural life. We are proud to work and live in Alberta, supporting our neighbours and helping build communities for over 100 years. Although we’ve grown and changed over that time, UFA remains a big part of small towns from the prairies to the foothills. Just like those towns, we know we will achieve far greater success as a group than as individuals. Because great things really do happen when we share a common vision and then roll up our sleeves to get it done. UFA is a founding partner of Ag for Life, a program that delivers educational programming to improve rural and farm safety. Ag for Life also builds a genuine understanding and appreciation of the impact agriculture has on the lives of all Albertans. To learn more about Ag for Life, go to agricultureforlife.ca. Visit UFA at UFA.com.
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NOVEMBER 12, 2012
Canada’s Outstanding Young Farmers ONTARIO
Ontario’s outstanding young farmers The Van Groningens focus on pasture-to-plate beef BY LEE HART
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ory and Heidi Van Groningen have built their well-established southwest Ontario beef operation around the long-standing agricultural axiom “produce what the customer wants.” The Van Groningens not only raise good quality cattle on their 400 head cross-bred cow-calf operation, but along with family members they see those animals through to processing, retail and consumer levels as well. In a world of major food retailers, “I guess we are just trying to do something a little different,” says Cory who along with wife Heidi operate Hillview Farms at Cayuga about an hour south of Hamilton, and about two hours east of London, Ontario. Their commitment to running a well-managed operation earned them the honor of being named Ontario Outstanding Young Farmers regional winners for 2012. The Van Groningens focus on producing beef for their own family retail market. It was Cory’s grandfather, Case, and later his father, Wayne, who built and operated the first abattoir and custom slaughter business in the early 1970s. Today, Cory and his three
Heidi and Cory Van Groningen with their daughters, from left, Brooke, five, Haley, four, and Ruth, two. brothers continue the vertically integrated pasture-to-plate operation. Over the past 10 years Cory and Heidi have focused on the beef production side of the business; brother Kyle is in charge of the retail and cutting; K e v i n h a n d l e s f o o d s a f e t y, quality assurance and product development; and Chad focuses on sales and market development. Along with the abattoir the family has also developed a thriving retail business. They have two retail outlets known as VG Meats (which stands for Very Good
Meats). One store is located at the abattoir at Simcoe and they opened a new retail location last year at Stoney Creek, a community on the southeast side of Hamilton. Along with regular retail business, they also supply meats to restaurants, other meat shops and are developing a market for meat in public-sector facilities such as hospitals and institutions. All market cattle produced at Hillview Farms are sold through their own retail/wholesale system. “We produce about 50 per cent of the meat we market and the
rest we source from other local producers,” says Cory. “We like to buy local and from other producers who have the same approach to production as we do.” Along with beef they also source and sell pork, poultry, lamb and veal as well as processed products such as ham, bacon, and beef jerky, and a number of meal-ready dishes. The Van Groningens haven’t gone for full organic certification, but they do produce cattle — finished in an on-farm feedlot, as naturally as possible, without the use of growth-promoting hormones.. “Our goal is to produce a natural product, and we really focus on producing good quality and tender beef,” says Cory. “We pay very close attention to the genetics we use in our cattle, but it also means paying close attention on the processing side — the chilling, aging and professional cutting.” Cory’s research for his master’s degree focused on the retail traits for selecting beef sires. He says they are continually evaluating the genetic side of their cattle operation, as well as processing techniques to ensure quality and tenderness. With the cow-calf operation the main cowherd is Black Anguscrossed Simmental and Limousin bulls. Calves are raised on grass before being brought into the feed-
lot for finishing on a grain-based ration. At processing, whole carcasses are dry-aged for 14 days and then the carcass is broken and aged further depending on end-use markets or customer specifications. “Producing quality, tender meat, aged to customer specifications is where we try to set ourselves apart from other shops and larger meat retailers,” he says. Sample meat cuts from their own cattle are evaluated at the University of Guelph. “We need to always be evaluating what we are doing, because you can’t make changes in a beef operation over night,” says Cory. Ongoing evaluation of herd genetics, and expanding their retail reach with a new store in 2011 have helped the Van Groningens develop a wider market for quality beef. “You always have to stay on your toes,” Cory says. “We need to keep making improvements with herd genetics to improve production efficiency, and we need to learn more about pasture management to improve grazing efficiency. We are always evaluating to make sure we are on the right track.” † Lee Hart is a field editor for Grainews in Calgary, Contact him at 403-592-1964 or by email at
[email protected].
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Canada’s Outstanding Young Farmers QUEBEC
Quebec’s outstanding young farmers Quebec couple building on their farming dream BY LEE HART
I
t took hard work, planning and patience, but after many years of renting land, and working with make-shift facilities, Martin Brodeur Choquette and Johanne Cameron, have turned their dream of having a successful sheep farm into a reality. Choquette and Cameron, who farm in southwest Quebec, started from scratch in their early 20s. Martin started with two sheep when he was 15 and by the time he graduated from agricultural college at age 20, he had built that into a 350 head flock. At the same time, Johanne was also building a flock while earning a degree in agronomy and a master’s degree in sheep reproduction. Her then 25-head flock included a supreme champion and several grand champions. When they met in 2004 they combined their love of agriculture and knowledge of sheep farming into a successful farming operation — Les Bergeries Marovine (MH) — that today includes a flock of nearly 1,200 head, including 650 ewes and 225 acres of farmed land. Their passion for agriculture and their business sense were among the criteria that earned them the honor of being named Quebec Outstanding Youth Farmer regional nominees for 2012. “When Martin first started and even after we started farming together all we could afford was to rent land,” says Johanne. Choquette and Cameron farm at St-Charles-sur-Richelieu, near Saint Hyacinthe, northeast of Montreal. It is a prime agricultural area. After renting land and facilities on five different farms for a few years, the couple finally made arrangements with local farmers to rent with an option to buy. “It was an old dairy and the buildings weren’t very good, but we rented the land and began to build proper facilities for sheep,” says Johanne. “In 2008 we were finally able to buy the farm.” Last year they bought a few more acres bringing their total landbase to 225 acres. Although it is not the largest sheep farm in Quebec, it is above average in size, with 650 ewes. The couple operates both a purebred and commercial sheep operation. They work with three primary breeds: Hampshire, which is used as the terminal sire breed; Romanov, a prolific maternal breed; and Border Leicester, a nonprolific maternal breed. The overall lamb crop ranges between 1,300 to 1,500 head with about 800 of those marketed through the Provincial Sheep Marketing Agency as heavy lambs (105 to 120 pounds), another 30 to 50 head are sold as light lambs at the stockyard, and the rest are kept for purebred sales or as replacement lambs. On the purebred side, the farm sells between 40 to 60 purebred ewes, 40 to 50 hybrid ewes (cross between Romanov and Border Leicester) and 15 to 25 terminal sire rams each year. “We like to have both the commercial and the purebred lamb sales,” says Johanne. “It helps to spread the risk. If one side of the market isn’t doing so well, hope-
fully the other side is.” As part of their purebred business, the couple shows sheep most years at the Royal Winter Fair in Toronto. Martin and Johanne have developed a year-round lambing flock. Since sheep are naturally seasonal breeders, they use a technique known as photoperiod, which artificially controls the length of day with indoor lights to trick or induce ewes into estrus. The couple lamb between 85 and 115 ewes per month, which allows them to meet their marketing agreement with the sheep marketing agency that requires them to ship at least 18 heavy lambs every two weeks. “We are able to get a better price for our lambs if we can produce year round,” she says. While the farm has grown con-
siderably in the past four years, Johanne says she and Martin plan to continue to expand. “With the sheep we are always looking for better genetics and to improve our production efficiency,” she says. This year they will be artificially inseminating ewes with semen from Australia, France and New England for their different breeds to improve the quality of the flock, which in turn improves the marketing potential. They hope to build the flock to 1,000 ewes over the coming years and to increase their land base. “It is important that we look at all opportunities to expand our business,” says Johanne. † Lee Hart is a field editor for Grainews in Calgary, Contact him at 403-592-1964 or by email at
[email protected].
Quebec Outstanding Young Farmers Martin Brodeur Choquette, his wife Johanne Cameron and their daughter, Clara, 15 months.
“Every day I get to walk outside and see what we’re building.
We can see our future
when we step out our front door.” – Jason Rider, Ontario
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NOVEMBER 12, 2012
Canada’s Outstanding Young Farmers Atlantic Canada
Atlantic Canada’s outstanding young farmers The Bernards develop a market for organic feed grains By Lee Hart
O
rganic crop production initially made good business sense, but Mark and Sally Bernard, have now also come to appreciate the philosophy of working more closely with nature as they continue to expand their Prince Edward Island farming operation. Both grew up on conventional farms — Mark’s family was involved in dairy and then potato production, while Sally grew up on a mixed farm. But over the past 10 years they’ve geared their 550 acres of crop and limited livestock operation towards a fully certified organic farm. “When I went back to college, I studied business opportunities in agriculture, and organic crop pro-
The Bernard family includes Sally and Mark Bernard and their children, Lucy, four, Wilson, two, and Thayne, one.
duction was one that caught my attention,” says Mark, who along with Sally, today operates Barnyard Organics Ltd. at Freetown, P.E.I. “I started with 50 acres as part of a class business plan project, but soon began to appreciate the philosophy behind organic crop and livestock production.” The Bernard’s successful farm and sound business management approach earned them the honor of being named Atlantic Canada’s Outstanding Young Farmer regional nominees for 2012. Mark had been involved with his father in a conventional potato farming operation. In 2000, Mark went back to school at Nova Scotia Agricultural College, where he came across the business potential of organic crop production. He also met Sally, who shared a
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similar interest. Together they set out to develop Barnyard Organics. The focus of their farming operation today is 550 acres of organic soybeans, wheat, barley, oats, fields peas and some buckwheat, all primarily produced for livestock feed. Sally takes the lead on producing organic livestock that includes 450 head of pasture-raised poultry, organic eggs from 70 laying hens, and about 20 head of sheep for lamb production, all marketed in direct sales off the farm. The Bernards began the organic certification process in 2003 and had the whole farm fully certified by 2010. In 2012 they will be marketing some of their organic feed production to a newly established organic feed mill on P.E.I. Some of their crop will also be shipped to Ontario. Mark says learning organic crop production techniques is an ongoing process. Different management is needed to improve weed control and to supply proper crop nutrients. Following a proper crop rotation is important in the process. Mark follows a five-year rotation and uses clover as a green manure plow down. When it’s available he also applies organic livestock manure. He obtains seafood waste from a nearby mussel shell farm that can be mixed with manure, and he also uses conventional livestock manure on his land, provided it is composted properly first. He’s also developed a system that combines narrower row crop spacing and cultivation to improve weed control in soybeans. While in some parts of Canada soybeans are grown on 30-inch seed rows, Mark seeds his on 18-inch centres. “I had to modify the cultivator to work within these narrower rows,” he says. “But it seems to work well. Most years I can cultivate fields once or twice early in the season to control weeds, before the crop canopy closes. Once the canopy closes the soybeans look after weeds themselves.” Mark says while organic crop yields can be somewhat lower than conventional crop production, the organics generally have higher market value. “As with any production system some years are better than others, but on average we are seeing one ton (about 37 bushels) per acre yield on soybeans,” he says. “And barley is coming in at three-quarter ton (about 34 to 35 bushels) per acre.” He usually seeds wheat immediately after two years of green manure clover, followed by soybeans and then barley in rotation. “There is still very good potential for organic crop production, but we also always encourage farmers to consider organic livestock production, as the two go hand in hand,” says Mark. “Ideally it almost creates a closed loop production system — the organic livestock operations have a need for organic feed, and then in turn the manure from the organic livestock can go back to the organic cropping operation. We just need more growers to see how the two operations compliment each other.” † Lee Hart is a field editor for Grainews in Calgary, Contact him at 403-592-1964 or by email at
[email protected].
NOVEMBER 12, 2012
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Keepers & Culls JBS in Canada more of treat than a trick LEE HART
It is Halloween as I write this and XL Foods is back to work, so all is right with the world. That might be a bit of an overstatement, but it is good to see the meat packer get back into operation after being shut down for a month, amid one of the largest meat recalls in Canadian history. Too bad, as one reader notes in a letter below, that recalled meat — reportedly up to about 500 tonnes — had to go into the landfill. What a waste. You’d think there would be some way with “proper cooking” to salvage some of it. Hey, they can put a man on the moon, but try and zap E-coli… But, XL Foods is under the management of JBS-USA, which by all accounts is a good thing. The new managers held a news conference, which is refreshing, to say they want to not only manage the plant, but hope to be able to buy it. And again that sounds like a good thing. In fact it must be a great thing, because I see an article which says that the U.S. beef industry protectionist group R-CALF is opposed to JBS buying the Brooks plant. Now I am trying to think why this would be a problem for U.S. beef producers. In the news article, R-CALF says they are concerned that if JBS buys the Brooks plant, it “would catapult JBS perhaps into being the largest beef packer in the United States…” Hello! I think the horse is already out of the barn on that one. According to my extensive research, JBS S.A. (South America), the parent company of JBS-USA is already the largest beef processor in the world. This is a company that kills anything that moves — beef, pork, poultry — with annual revenues of about $33 billion. The Brazil-based JBS bought the old U.S. meat packer, Swift & Company in 2007 and renamed it JBS-USA. JBS already processes about 52,000 head of cattle per day, so adding another 5,000 head at Brooks isn’t unbelievable growth in an era when more and more companies are doing multi-billion dollars deals before breakfast. I might be living in a dream world, but I think it would be bet-
ter if the Canadian meat industry also had two or three moderate-sized packers, just so all the proverbial carcasses weren’t just in one or two big industry coolers. But, then I would like them to bring back Gunsmoke and Bonanza on TV and it is unlikely that will happen (certainly not with the original cast members.) Along with a couple of comments on the XL Foods issue on this page, there is also a news item from an Alberta company that has developed a scanning device to quickly and accurately determine if bacteria is present on meat. And that sounds like a pretty good idea. We all know how effective the blue light is on CSI when scanning bed linens or looking for tell-tale blood splatter. E-coli will have no place to hide.
FROM THE MAILBAG To the editor, On the morning of Oct. 22, I woke up, and on my favourite TV news channel the first thing I saw was the story on the landfill at Brooks, Alberta and the truckloads of meat being buried there. My first reaction was shock as to what a million pounds of beef is in terms of volume. Then it brought a tear to my eyes as I realized what it really meant. It meant that nearly 1,333 head of cattle were wasted, and some of those wasted animals could have been ones that I raised. As a rancher I have a social contract with my animals. I provide feed, water and shelter to them and in turn they provide their young to feed Canadians. As part of the contract I am to be humane to them, not to abuse them or mistreat them, to care for them if they are ill, to provide assistance if they need it during birth and above all, to ensure their young are cared for and that their short lives are not wasted. We have a moral responsibility to ensure we do not mistreat or waste these animals. They deserve better. Canadians must get involved and demand accountability for this wanton waste and demand our food system be restructured so that no more XL’s occur. Write your MLA, MPP, MP and county and city councilors and demand change — and demand to be part of that
CONTACT US
Write, Email or Fax Contact Cattleman’s Corner with comments, ideas or suggestions for and on stories by mail, email, phone or fax. Phone Lee Hart at 403-592-1964 Fax to 403-288-3162 Email
[email protected] Write to CATTLEMAN’S CORNER, PO Box 71141 Silver Springs RPO, Calgary, Alta. T3B 5K2
change. And yes please light a candle and place it in your window for those 1,333 wasted lives. Neil Peacock NFU board member Cattle Rancher Sexsmith, Alta. Dear Editor: Re: Readers ticked off with CFIA and XL Foods mess, Grainews Oct. 22. There is another side to the story. First of all, each individual who works at the XL Foods plant is aware of safety issues. From the kill floor to the finished product, the employees are working hard to keep their jobs. At each level of production, supervisors are overseeing the hands-on employees at their jobs. Has there been a breakdown in communication? Are the supervisors, managers, top executives and owners not listening, or communicating with the employees? For example several nozzles on the water hoses on the kill floor were broken. Immediately there is a breakdown in cleanliness. Everyone working in this plant knows what is right and wrong. Their jobs and livelihoods depend on doing a good job. However, if supervisors and maintenance staff do not act promptly, there is a problem. If the owners do not support their supervisors and each employee, there is a problem. Instead of blaming the CFIA inspectors, why not promote loyalty, good work ethics, good maintenance, supervisory support and price in each and every job. In this way, no CFIA inspectors are needed. Each individual employee is a safety inspector. Health standards and practices are maintained. Owners, management and workers are all working together for the greater good, for the common good of XL Foods and our country — Canada. Peter and Marion Giesbrecht Red Deer, Alta.
NEW SCANNING TECHNOLOGY A new technology being introduced into the Canadian foodprocessing industry may help in the battle to provide less cross contamination of harmful bacteria. Called Bactiscan, it is a portable light source that can be used to scan food processing equipment surfaces and show instantly areas where cleaning was not effective. Once unclean locations are identified, thorough analysis and control procedures can be implemented and the areas cleaned properly. “The technology uses light in various wavebands which cause unclean surfaces to fluoresce somewhat,” says Easytesters spokesperson, Bob Holland. “Viewed in a near dark environment, it’s like the unclean area glows. It’s very easy to see where the cleaning has not been effective. Digital photographs can be used to document and compare the unclean surface before proper treatment and after.”
Currently, many food processing facilities use the internationally recognized Hazard Analysis Critical Control Point (HACCP) procedures to develop safe cleaning and reporting standards for their food processing facilities, says Holland. HACCP is a system that directs plant procedures for identifying chemical and biological foodborne c o n c e r n s . U n d e r H A C C P, manufacturer’s procedures directly require staff to correct deficiencies. HACCP is constantly changing to strive for the best known control procedures.
The Bactiscan scanner There is nothing like Bactiscan on the market currently, says Holland, and it is being viewed with interest by the food processing industry. The technology has been supported by two independent studies in the U.K. Recently, the University of Alberta’s AgriFood Discovery Place (AFDP) in Edmonton has also been contracted to examine the technology. The AFDP project will examine specific known substances on stainless steel surfaces to see how they appear under the Bactiscan light bands. The project is taking place within the Meat Safety and Processing Research Unit (MSPRU) of AFDP. The MSPRU is designated a “Containment Level 2” meat processing pilot plant that provides industry, academia and government with the ability to carry out industry driven applied food safety and quality research. Containment Level 2 status allows MSPRU to work with pathogens such as E. coli, salmonella and listeria. The Bactiscan technology is easy to adopt by industry, says Holland. There is minimal specific training required to operate the system. It can either be leased on an annual basis, or inspection services contracted by the hour. A similar product, Bactiscope, used to scan the insides of pipes up to 20 metres, is also being marketed by Easytesters. “It’s important to consider new technologies,” says Holland. “We’re in a situation today where disease outbreaks can directly affect consumers and threaten the livelihoods of thousands of people in production and the related food industry chain.” Easytesters is an international technology company with several food processing equipment testing products on the market. The Canadian operations are headquartered in Calgary, Alta.
NEW BOVA-TECH OWNERS Bova-Tech Ltd. (BTL), an internationally recognized Albertabased embryo transplant company, is under the new ownership of Dr. Andres Arteaga, with the company’s office and embryo storage facility relocated to Airdrie, Alta. just north of Calgary. “We are excited with the new opportunities this presents to BTL and will continue to provide the high level of customer service that clients have come to rely on from BTL for more than 25 years,” says Arteaga. Born and raised in Mexico, Arteaga has been involved in the Canadian embryo transfer industry since 2003. He received his masters in Veterinary Science, specializing in Theriogenology from the Western College of Veterinary Medicine in Saskatoon, Sask. BTL offers the beef and dairy industries in Alberta, Saskatchewan and Manitoba complete commercial embryo transplant services along with international export market opportunities. “In-clinic and on-farm services for embryo collection, freezing and transplants will continue to be the foundation at BTL,” says Arteaga. “For customers who prefer inclinic services we have formed a partnership with two respected Alberta centres which will serve as our official satellite locations.” “BTL will be working with Earl and Jonathan Scott who recently opened Scott Stock Farm Bull & Heifer Development Centre near Crossfield, and Duncan Fleming and Justin Pittman of Fleming Stock Farms near Granum. These facilities will offer complete services for hosting donors and recipients cows. The Scotts and Flemings have decades of cattle care and management experience with a proven track record for both providing hands-on, customer focused service,” says Arteaga. For more information visit the Bova-Tech Ltd. website at www. bova-tech.com
COMING EVENTS C AT T L E M A R K E T I N G — Canfax, the cattle market info division of the Canadian Cattleman’s Assoc. is staging its first cattle market forum in Calgary, Nov. 13 and 14. The event will be held at the Deerfoot Inn and Casino. Registration details can be found on the Canfax website at: www.canfax.ca by clicking on the forum poster. GRAZING CONFERENCE The Western Canadian Grazing Conference and Trade Show is coming up Nov. 28 and 29 at the Sheraton Hotel, Gaetz Ave. in Red Deer, Alta. Held every two years, the conference this year has an excellent line up of speakers including beef producers Neil Dennis of Wawota, Sask., Charley Orchard, grazing management specialist from Great Falls, Montana; and Glen Rabenberg,
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Cattleman’s Corner ANIMAL HEALTH
Make the most out of implanting calves those programs must be followed which don’t include implants.
ROY LEWIS
KNOW THE LIMITS
ANIMAL HEALTH
I
mplanting cattle has been around since the 1950s, but the myriad of protocols and combinations can make it difficult to decide which combination to use. Despite the fact implants have a return on investment of approximately 20 to one, these growth promotants are very much underutilized in the cowcalf sector. Feedlots use implants to a far greater degree as they increase there profit margins, with increased gains and better feed efficiency. If hormone-free or organic beef is being raised then specific requirements of
Implants should definitely be considered as calves are processed before going to pasture. Don’t implant bulls as it will affect their fertility. Heifers can be implanted if they are not kept for breeding. A couple of the implant brands are approved for breeding heifers as long as they are administered early enough. Definitely do not re-implant these heifers as the number of open heifers the following breeding season will be very high. I personally have seen open rates in the order of 40 per cent when heifers are implanted twice before breeding. For replacement heifers it is better to not run the risk of implanting.
Implanted steers will grow near the equivalent of bull calves. My feeling it is better to castrate bulls as young as possible and then implant. You then avoid the much greater risk of infection or blood loss when bulls are castrated at a much older age. The problem of riding is also greatly reduced when castration is performed at a younger age.
PROPER FACILITIES You need proper restraints for holding cattle when implanting. Hydraulic chutes or the shoulder restraint device on some chutes keeps the head still so implanting is easier. Be careful in handling and in applying implants. Crushed implants lead to improper absorption and sometimes bullers can result.
When implanting, are inserting the needle in the ear, pull back on the gun just a little so the implant will slide into the space created. Keep the gun and needle clean and don’t implant through manure or dirt on the ear. Producers keep a tray with a disinfectant in it beside the chute. Push the gun through rollers immersed in the disinfectant. Abscesses and/or infection can increase the risk of implant pellets falling out and/ or the area is walled off and scarred, greatly minimizing absorption. Make sure the implant guns are compatible with the implant being used. Each company has a different gun. The gun should not wear out or be stiff to operate, so if there is a problem get a new gun. Ralgro has the smallest needle
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As with all equipment, keep needles of the implant gun sharp and have spare needles. Start with clean equipment and keep swabbing the needle through the disinfectant tray after every use. Implant in the middle of the ribs at the back of the ear on whichever side there are the least tags. Tags have a tendency to be placed in the same ideal place as implants and now with lot tags, individual identification tags and RFID tags, many prime locations for implanting have been taken. Your next ideal place is over the top of the ear half way out from the head.
MAKE THE MOST OF IMPLANTS Many of the implants can now be given to both heifers and steers, but read the label to be sure. And make a note of how long the implant lasts so you know when the next implant should be given. Most implants now contain TBA, which lays down more lean meat (muscle). Although grading is something feedlots really focus on, by increasing the gain you make up for any losses a grading penalty costs. Nowadays overweight carcasses are almost a thing of the past it is all about pounds of meat. Every time calves are processed, remember there are many different implant strategies so work out one with your herd veterinarian which best matches your type of cattle, feeding regimen and when you are most likely to handle your calves with adequate restraint to make implanting easy. Then you can capitalize on the extra gains. If feeding or backgrounding, a second and sometimes a third implant is needed to optimize gains. That’s why you may need to use both ears and different locations each time you implant. In the cattle industry today there is nothing more safe and has a better returns on investment than implanting. †
BY DAN PIRARO
Bizarro
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BUILDING TRUST IN CANADIAN BEEF
Cattleman’s Corner
Standards drive this expanding national beef operation
Jim Martin gets a window on innovative approaches on Ontario’s Manitoulin Island
T
his is cattle country. At least in Jim Martin’s view that’s what the numbers would tell you about Ontario’s Manitoulin Island. While Ontario’s overall numbers have varied substantially with land prices, droughts and feed grain prices, the Island cattle numbers have held fairly firm. Martin, the cattle manager at a new enterprise in the region, the Blue Goose Cattle Company, is a longtime resident and big-time believer in the Island cattle economy. The arrival of Blue Goose and a new abattoir about to open are two reasons for even more enthusiasm for the region.
Blue Goose is a B.C.-based operation based on strict production standards producing what the company describes as a “clean protein.” The product is organic with a focus on environmental and animal-care practices. The pasture-to-plate production process culminates in a branded beef product. Growth plan
(VBP). On farm, Blue Goose has a cattle identification system that tracks all vaccinations and health records. VBP complements the organic process, he’s found. “Most organic certification programs have some specific audit standards, but the VBP program fits well,” he says. While some organic certification starts when a calf reaches finishing period, VBP goes right from day one of an animal’s life. “When you are VBP audited you can say to potential consumers we’ve done the highest standards we can do on farm voluntarily. VBP says it’s on paper, and in our case, every staff member has participated in a VBP workshop.” With four staff, communications is important. The operation uses handwritten records, and stafaf are trained in their responsibilities. “We review things bimonthly with everybody and with some of them monthly,” he says. “One of the best things about the VBP program is that it is so user friendly. It’s not that it is too simple, just that it is in cattle-friendly terms.”
The plan for the northern Ontario operation was to have 400 cows and finishing all the offspring, says Martin. But it is more likely the program will be much larger, perhaps as many as 1,000 cows. Product would be moved mainly to the Greater Toronto area. A new abattoir is a key part of the puzzle. Built as a not-for-profit corporation by 50-plus local producers, it is designed to handle about 20 head a day at maximum capacity but more likely will see about 40 head a week. Financial support also came from the Ontario Cattlemen’s Association, the Ontario Ministry of Agriculture and Food’s Rural Economic Development program, FedNor, the Northern Ontario Heritage Fund Corporation, several local municipalities, and one First Nation. For so many years we have had to move Consumer first Martin believes most producers understand cattle off the Island to process them, says Martin. “Now we can process the cattle that the consumer expects us to be doing locally and we are not that far away from a these things. “It’s not something we need to be paid extra market of five million people.” for. Producers know when they shop themVBP role selves that they expect certain things have been All of this, says Martin, fits well with done, that the product is brought to the retail Canada’s Verified Beef Production Program as safe as possible.”
DEVELOPED BY PRODUCERS. DEVELOPED FOR CONSUMERS
One implant. That’s it. You’re done! Avoid the inconvenience and stress of re-implanting. Do it right. Do it once. For more information, talk to your veterinarian or call our technical service at 1-866-683-7838. ® Registered trademark of Intervet International B.V., used under license by Intervet Canada Corp. Merck Animal Health, operating in Canada as Intervet Canada Corp., a subsidiary of Merck & Co., Inc., Whitehouse Station, NJ, USA. MERCK is a trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Whitehouse Station, NJ, USA. Copyright © 2011 Intervet International B.V., a subsidiary of Merck & Co., Inc., Whitehouse Station, NJ, USA. All rights reserved.
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NOVEMBER 12, 2012
Cattleman’s Corner ANYONE CAN START FARMING
Brix test may be guide to improve soil health DEBBIE CHIKOUSKY
W
hen we moved to the farm October 15, 1994 we had no idea how much we had to learn. Since we haven’t been able to meet our own hay requirements, although we have owned a fairly large land base since 1996, we have decided it is time to buckle down over the winter and figure out what we are doing wrong. It is a very good thing that my favourite things to do are research and learn from other farmers how to make our farm work better. My husband has spent quite a bit of time this year discussing our land’s lack of productivity with organic farmers. Why organic? Because we believe in order to produce the highest-quality feed for our livestock the soil must first be healthy and chemicals are not going to revitalize our soil.
COMPACTION ISSUE The soil here is solid at the moment. Compacted very badly. In fact it sounds hollow when the cows walk over it. Our area has gone through drought, then four years of drowning, then an almost-normal year. We were very lucky this summer to harvest one-quarter of the normal forage crops. Grain crops in our area were also short. Logically, if this is happening to annual crops the pastures are also suffering. We have also observed many native plants have disappeared. We were told fields full
of dandelions mean the land is short of calcium but high in nitrogen. Without sufficient calcium none of the minerals in the soil can move and be utilized. Just by observing the land this summer, we have seen so many problems that indicate our soil needs work. This is where the new learning curve is going to be steep. The burning question though is how do you improve the quality of the feed the land is producing on a small budget?
SOIL HEALTH AND FOOD QUALITY Dr. Arden Anderson has studied the correlation between soil health and feed nutrition. His research has shown the nutrient content of foods today compared to half a century ago ranges from 15 to 75 per cent less. According to him we have to look at the soil to decipher why nutrition isn’t at the proper levels. But what does this mean to a livestock producer? It means if we want our inputs costs to go down we need to be raising our feed and livestock on rich soil that is teeming with life. We have always found feed testing a daunting task so we are very interested in using another testing method known as Brix testing next year. Brix testing involves using a hand-held device called a refractor to make a visual reading on the sugar content of plant material. The test actually refers to the total amount of soluble solids, that is, sugars along with plant proteins, vitamins, and minerals. A Brix reading lower than 10 tells the farmer that the plant lacks nutrients. The desirable reading is 13, which indicates a robust and
nutrient-rich plant. To measure the Brix a refractometer is necessary as well as a method of extracting the juice from the plant. The optical refractometer uses daylight passed through a glass prism to measure Brix. The reading is read through an eyepiece, and the user measures the refracted light angle on an optical scale. To obtain juice/sap samples some people use garlic presses for this but a juicer is better. There are digital refractometers available but we have used an optical one, average price is $100, available online at www.amazon.ca. A great visual explanation of these machines is found at www. crossroads.ws/brixbook/BBook.htm.
FEED EFFICIENCY The greatest measure of how well the ration is meeting the nutritional needs of our ruminants can be seen in how well their offspring are growing. We do not creep feed so our youngsters depend on their dams’ milk for growth. While researching how to improve the health of our soil thereby improving the Brix of our feed, I tripped across an interesting article that explains ruminant animals are relativity inefficient at converting grass proteins to milk proteins, only achieving approximately 20 to 25 per cent conversion efficiency. On top of this, some proteins are not well utilized by the animal. Research proves there is some correlation between this conversion efficiency and high sugar (Brix) content on a farm. IGER Innovations research in 2001 suggests high-sugar grasses have a positive effect on the milk production efficiency of an animal.
Grass is broken down in the rumen, producing amino acids to grow and produce more protein, which is later used for milk production by the cow. However, when the diet lacks readily available energy such as sugars, rumen microbes either cannot grow or, instead use amino acids to provide energy, meaning less milk production. Feeding energy-rich foods in a concentrate feed is one way to increase the efficiency of the rumen, however the cheaper way is to use the sugars which naturally occur in forages (Moorby, 2001). This concept is extremely important to those of us that are grass-based and cannot depend on adding carbohydrates such as barley to our ruminant’s diets to make up for what our grass is lacking.
ADDED MICROBES But how do we improve our soil to improve our Brix reading? One idea is utilizing a mycorrhizal inoculant www.mycorrhizae.com at seeding. Mycorrhizal refers to a class of natural beneficial microorganisms that live in the soil where grasses grow and enhance the plants ability to utilize the macronutrients that are in the soil. Mycorrhizal fungi are present in most undisturbed soils, such as native grasslands and forests. They live symbiotically with innumerable amounts of beneficial bacteria, protozoa, actinomycetes, worms, and insects. Unfortunately populations are particularly low in agricultural soils that have been exposed to pesticides, chemical fertilizers, tillage, compaction, organic matter loss, erosion, another words not been treated in a manner that would feed them. It is very hard to
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KEEPERS AND CULLS
president of Soil Works, PhosRite and Genesis Soil Rite Calcium. Banquet speaker is David Irvine, an Alberta psychologist who will talk about “Working with the ones you Love: The human side of agriculture.” For more information visit the conference website at: www.westerncanadiangrazingconference.com or call the West Central Forage Association at 780-727-4447. MANITOBA RANCHER’S FORUM — The long-running Manitoba Grazing School has been revamped and renamed this year as the Manitoba Rancher’s Forum to be held Nov. 27 and 28 at the Victoria Inn, Brandon, Man. While the school was good, organizers decided to refresh the program, with a broader range of topics focusing on the needs of livestock, forage and grain producers. There will be a wide range of topics and speakers for all involved in agriculture. The topics include: marketing, animal rights, soil and pasture cropping systems, herd health, legal liability issues on the farm, tax management, feedlot topics, goat and sheep production, social media development and much more. Speakers will range from the Manitoba minister of agriculture to Canadian Cattlemen’s
naturally replace the mycorrhizal fungi because they form their spores under the ground and are not easily moved in the air. Use of mycorrhizal inoculation at seeding can also reduce the need for applying phosphorous because mycorrhizal fungi such as Glomus mosseae, Glomus intraradices and Glomus etunicatum species produce a high level of phosphotase enzymes that specifically extract tightly bound phosphorus from clay particles and make phosphorus immediately available to the plant. Since high rates of P application can kill mycorrhizal this needs to be considered when using it. The other tool in our nutrient toolbox will be composted manure. Since we are planning on improving pasture and forage land, weed seeds that can be a problem when applying raw manure are not an issue when applying compost. Other ideas that have been suggested to us involve using fish emulsion, or molasses/raw sugar treatments that feed the beneficial organisms once populations are established. Over the winter we will be developing a plan. We have been gifted with a four-bottom plough, a disc, a seeder, and already have a manure spreader and haying equipment to be able to become a lot more selfsufficient on our farm. Our goal isn’t just to return to producing sufficient quantity of feed but also good quality feed so as to release us from dependency on high priced feed purchases that are putting a huge stress on the financial viability of our farm. † Debbie Chikousky farms with her family at Narcisse, Manitoba. Visitors are always welcome. Contact Debbie at debbie@ chikouskyfarms.com.
Association President Martin Unrau. Other highlights include Brenda Schoepp from Beeflink, Merle Good, a taxation specialist from Alberta with extensive experience in taxation and business and an ever-popular producer panel on sustainable farming. Agri-businesses will be in attendance with booth displays and handout materials. Registration is $150 per person for Manitoba Forage Council Members (earlybird), which includes meals and sessions. For more information go to the Manitoba Forage Council website at: www.mbforagecouncil.mb.ca or any MAFRI Go-office. FORAGE CONFERENCE: The Canadian Forage and Grassland Association is holding a two conference on Innovations in the Forage and Grassland Sector, December 10 to 12, at the Radisson Plaza Mississauga hotel at the Toronto Airport. Several key speakers are lined up for the event including Dr. Dan Undersander, University of Wisconsin; Dr. Ralph Martin, professor and Loblaw Chair Sustainable Food Production, University of Guelph; Steve Eby, a beef producer; Evert Veldhuizen, a dairy Producer; Ed Shaw, IQ Forage, Carstairs, Alberta; Marc Lavoie, Macay Enterprises, Peace River, Alberta; Jeff Roberts of Harvest Tech Inc.; and Nick Betts, Ontario Soil and Crop Improvement. For more information visit the association website at: www.canadianfga.ca †
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NOVEMBER 12, 2012
Cattleman’s Corner RANCHER’S DIARY
Girls excited about new fillies HEATHER SMITH THOMAS
SEPTEMBER 25 ndrea and Emily had an inspiring time at the World Burn Congress in Milwaukee, Wisconsin. They made many new friends and got very little sleep, spending most of their time visiting with other burn survivors and their families. Emily quickly got over being shy, realizing that most of the young people she met were much more insecure than she was, and she enjoyed helping a few of them feel more at ease. While they were gone Lynn and I took care of the other kids. The
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little girls had coughs and a fever and we took them to the doctor to treat their respiratory infections. Michael spent a day cleaning all the old manure (many years’ accumulation!) from our horse pens, so they can go into the winter without being a boggy mess. We re-bandaged Sprout’s foot several times, using a poultice and keeping the foot in a boot to keep the bandage dry. Then we kept it in the boot awhile longer after the abscess cleared up, to protect the hole in her sole until it fills in more. Sammy and Dani were feeling better by the weekend, and helped us move cattle from the field below the lane up to Heifer Hill. We didn’t want the girls to be outside very long, however, because the air is still smoky from the fires. We’ve had two months of thick smoke. The next week we brought the
cattle down, sorted heifer calves into the grassy pen below the barn to wean (with their mothers through the fence in the adjacent field) and left the steers with their mothers overnight in the orchard. Michael came with his trailer at daylight and we sorted off the steers to haul to the sale at Butte, Montana. They were bigger than we’d expected, considering they were only five months old. The larger steers averaged 525 pounds and brought $1.59 per pound. The smaller ones weighed 440 and brought $1.69 per pound. Lynn and Michael took our tractor and post-pounder out to Michael Phillips’ place north of town and spent a week setting posts and building jack fence across the part by the river, finishing the division fence on that property. Michael will take yearlings down
The daily routine is to spend time with the two new fillies, getting them used to the halter and being handled. there for fall pasture, trading fence work for pasture rent. OCTOBER 8 — We actually had rain last week that cleared the air for a couple of days, and then the
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smoke drifted back in — the fire north of town is still burning. Last Saturday Jason Beyeler brought the two Morgan fillies we looked at a few weeks ago at his place. We’re buying a dark chestnut weanling that will be Dani’s horse, and a palomino two-yearold for Sammy and me. The weanling hasn’t been handled and was very shy. Emily spent an hour in the pen with the two fillies, feeding them grass. Eventually she was able to pet them both. The next morning Dani and Sammy came down to see their “surprise” and were delighted with their new horses. They named the young one Willow and the palomino Spotty Dottie because of her dapples. Andrea and I have been handling both fillies every day, leading them, picking up feet, etc. Willow was reluctant to lead at first, so we used a rump rope “come along” and she is now leading nicely. The older filly is trained to tie up but we’ll gradually train the weanling to tie. OCTOBER 25 — Michael and Carolyn have been taking protein to their cows and calves on the 320 and 160 acre mountain pasture to encourage them to graze the dry feed, but they ran out of grass last week. They took some to the rented pasture north of town and brought 13 pairs down here to graze our little field across the creek. We met our new neighbours, the three Amish families that bought the Maurer place around the hill from us. We’re looking forward to getting better acquainted with them. Michael used the backhoe to tear out the falling-down side of our main corral and clean up a pile of old boards and junk behind it. He and Lynn set new posts along that side and for a new hold pen in the area we cleaned out. We also had to dig a trench through the corral and put in a drain pipe, so the spring on the back side of the corrals won’t keep flooding the corrals. We repaired the old fence in the bull corral, and Michael brought back the three bulls he and Carolyn borrowed this summer. One day a couple weeks ago it wasn’t very smoky and we took Sam and Dani for a ride. The dust was still bad, however, and we came home covered with dust. The smoke finally cleared up for good after a little rain (and snow on the mountains). The big fire north of town is finally under control after burning more than 350,000 acres. † Heather Smith Thomas is a long-time writer who ranches with her husband Lynn near Salmon, Idaho. Contact her at 208-756-2841.
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Cattleman’s Corner BETTER BUNKS AND PASTURES
Tips for managing high-nitrate forages PETER VITTI
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t’s been a rough summer for growing many crops in Western Canada, despite some official reports of a bountiful harvest. Some parts of the western Prairies had a coolwet growing season, while eastern areas were baked by drought. Such polarized weather is ideal for toxic accumulation of nitrates in forages. Fortunately, nitrate testing of forage samples is inexpensive. If a winter feed inventory is found to contain toxic levels of nitrates, measures can be taken to reduce potential nitrate threats in rations. Mature cows and replacement heifers are the most vulnerable group to the threat of nitrate poisoning. Their typical diets are made up mostly of forages, which could contain damaging nitrates (grain is very low in nitrates). A small cross-section of plants harvested for cattle forage and known to accumulate nitrates under the “right” adverse growing conditions are: barley, corn, oats, canola, soybeans and millet. Field weeds such as pigweed, kochia and Canadian thistle have also been sighted as high nitrate accumulators.
of plants’ own natural life cycle. These same nitrate compounds are ultimately responsible for helping cattle meet their own daily protein requirements when they consume forages in their rations. It is under these normal and less-stressful circumstances when nitrates are taken up by the plants’ root system, transported through the stems and finally to the leaves, where it is converted into plant protein by photosynthesis. If this natural process is interrupted or slowed, plants begin to accumulate toxic levels of nitrates in their roots and lower stems to the extent that high nitrate concentrations are stored in the lower portion of the plant, rather than made into plant protein. Any conditions that reduce their photosynthesis capacity of most crops, such as a cool and cloudy spring, promotes nitrate accumula-
tion during the growing season. It’s also easy to see why so many hailed-out areas becomes highnitrate cattle feed; not only do hail-shredded leaves shut down photosynthesis, but any surviving leafless plants still have an active root system which keeps on pumping nitrates into the plant until the crop is cut down. Likewise, in drought-stricken areas, not only are plant leaves wilted, but a lack of moisture also impedes any uptake of nitrates by the remaining and functioning leaves.
TEST SUSPECT FEED All such nitrate-suspected forage (re: a hailed-out barley crop or drought-stricken corn field) should be tested before feeding as the best assurance for safety. Producers should collect samples in the field and then collect another set of sam-
ples once the crop is harvested. Send in all samples into a reputable laboratory and request a common nitrate test, which should cost no more than $20 per forage sample. It is also recommended that water samples be collected and tested for nitrates, too. A routine laboratory printout will show forages and other feeds analyzed for nitrate content are commonly reported as nitrate (NO3) or nitrate nitrogen (NO3N). Research has proven mature cattle and replacement heifers can safely consume a total diet containing nitrates that are below 0.5 per cent Nitrate (NO3) or expressed another way; below 0.12 per cent nitrate nitrogen (NO3N) on a dry matter basis. There are three recommendations for reducing the threat of nitrate poisoning in beef cattle if the forage analysis proves high levels of nitrates:
SAV Iron Mountain 8066
Peter Vitti is an independent livestock nutritionist and consultant based in Winnipeg. To reach him call 204-254-7497 or by email at
[email protected].
Peak Dot Ranch Ltd.
This sale will again feature a large number of progeny from SAV Iron Mountain 8066.
Fall Bull and Female Sale Thursday, Dec. 6, 2012
At the Ranch, Wood Mountain, Saskatchewan
Selling 150 Bulls and 25 Heifer Calves Selling 300 Bred Commercial Heifers Friday Dec. 7, 2012. At 11:00 a.m. C.S.T
Online at www.teamauctionsales.com
NITRATE MYTH It’s a bit of a myth that most nitrate-poisoned cattle become lethargic and then die under our nose. That type of acute cattle loss infrequently occurs in beef cattle that have not had time to adjust to toxic nitrate forage. A high-risk situation for example, might involve hungry cattle that go without feed during a storm only to engorge themselves on high-nitrate feed put in front of them. Such beef cattle might adapt to high- (not toxic) nitrate forage over time, yet even most non-lethal nitrate poisonings are subclinical and very subtle in nature. Producers might subconsciously notice there are a number of unexplainable abortions in the mid- and late-term cows, while calves born of other nitrate-afflicted cows are premature and have a higher newborn mortality. Poor growth and body condition, a higher incidence of disease with slower recovery and poor milk production amongst all cow members are other common symptoms of nitrate poisoning. Oddly enough, nitrates are not particularly poisonous to cattle. Rumen microbes are naturally able to break down low levels of nitrates from forage into ammonia, which is safely incorporated back into bacterial protein. In contrast, excessive forage nitrates overwhelm this microorganism capacity to process nitrates, which then causes an abnormal nitrate/nitrate pool to form. The latter nitrites are then absorbed across the rumen wall and into the bloodstream where they diminish the oxygencarrying capacity of hemoglobin in red blood cells, which causes the animals’ body tissues literary to suffocate. As much as excessive nitrates in forages can be a blood-poisoning hazard in cattle feeding, it should be noted nitrates present in the soil and taken up by plants are all part
• Don’t feed high-nitrate forage. For example, allowing pregnant animals to graze drought-stricken corn stover is unwise, because most nitrate accumulation occurs in the lower 20 cm of cornstalks. • Ensile high-nitrate forage. Making barley and corn silage reduces nitrate levels as much as 60 per cent, yet high-nitrate silage may result in lower but still toxic nitrate silage. In addition, making dry hay from high-nitrate forage has no effect on nitrate levels. • Dilute high-nitrate forages. Grind contaminated forage such as hay and mix it with low-nitrate feeds such as clean hay, silage or grains to acceptable safe limits in a TMR mixer. It is not suggested to feed high nitrate forage without processing. Feeding whole highnitrate bales alternated with whole low-nitrate bales in bale feeders doesn’t solve the problem. †
View videos and photos of Commercial Heifers at www.peakdotranch.com or phone Carson Moneo 306-266-4414 for more information. Peak Dot Bold 617Y
Peak Dot Iron Mountain 151Y
Peak Dot Iron Mountain 307Y
Peak Dot Bold 204U X HF Power Up 72N BW: +4.4 WW: +46 YW: +100 M: +19 BW: 92 205 WT: 748 365 WT: 1334
SAV Iron Mountain 8066 X SAV 004 Predominant 4438 BW: +2.8 WW: +52 YW: +97 M: +19 BW: 80 205 WT: 815 365 WT: 1302
SAV Iron Mountain 8066 XHF Power Up 72N BW: +6.2 WW: +51 YW: +94 M: +20 BW: 98 205 WT: 814 365 WT: 1276
Peak Dot Bold 298Y
Peak Dot Iron Mountain 172Y
Peak Dot Bold 204U X Stevenson Bruno 6371 BW: +3.8 WW: +47 YW: +91 M: +22 BW: 89 205 WT: 854 365 WT: 1300
Peak Dot Bold 204U X SAV 004 Capacity 5234 BW: +2.5 WW: +58 YW: +101 M: +17 BW: 86 205 WT: 789 365 WT: 1295
Peak Dot Iron Grasslands 426Y
Sandy Bar Grasslands 94T X SAV 004 Predominant 4438 BW: +3.1 WW: +42 YW: +80 M: +13 BW: 80 205 WT: 742 365 WT: 1292
Peak Dot Bold 298Y
Peak Dot Iron Mountain 302Y
Peak Dot Grasslands 409Y
Peak Dot Bold 204U X Double AA Reto 287 BW: +4.6 WW: +43 YW: +87 M: +16 BW: 82 205 WT: 721 365 WT: 1196
SAV Iron Mountain 8066 X SAV Saugahatchee 9374 BW: +4.3 WW: +50 YW: +90 M: +18 BW: 89 205 WT: 775 365 WT: 1245
Sandy Bar Grasslands 94T X SAV 004 Predominant 4438 BW: +5.5 WW: +40 YW: +79 M: +15 BW: 94 205 WT: 739 365 WT: 1278
Peak Dot Iron Mountain 306Y
Peak Dot Bold 104Y
Peak Dot Bold 204U X SAV 004 Capacity 5234 BW: +2.5 WW: +58 YW: +101 M: +17 BW: 86 205 WT: 789 365 WT: 1295
SAV Iron Mountain 8066 X Basin Prime Cut 354K BW: +3.5 WW: +49 YW: +90 M: +20 BW: 90 205 WT: 805 365 WT: 1268
Peak Dot Iron Grasslands 405Y
Sandy Bar Grasslands 94T X SAV 004 Predominant 4438 BW: +4.9 WW: +48 YW: +89 M: +16 BW: 94 205 WT: 765 365 WT: 1314
View Sale Book and Sale Cattle Photo Gallery at www.peakdotranch.com or phone Carson Moneo 306-266-4414 Clay Moneo 306-266-4411 Email:
[email protected]
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NOVEMBER 12, 2012
Cattleman’s Corner THE MARKETS
Consumers careful about food dollars Families aren’t eating out as much or buying as much beef as expected JERRY KLASSEN
T
MARKET UPDATE
he temporary closure of the XL beef plant at Brooks, Alta. along with a firm Canadian dollar were the main factors limiting the upside in October. Fed cattle in Western Canada continue to trade in the range of $106/cwt to $108/ cwt, similar to month earlier while the steers in the U.S. Southern Plains were selling at $127.50/cwt, up approximately $4/cwt from earlier in the month. U.S. packers are starting to anticipate larger demand in late November and December and wholesale beef prices are back up near historical highs. Cattle-on-feed numbers are down slightly from a year earlier but U.S. feeder supplies remain tight, resulting in larger feeder exports to the U.S. The market appears to have renewed optimism for the winter and spring period, but consumer demand remains a large uncertainty. Fast-food sales are coming in lower then expected and consumer confidence remains sluggish. Consumers tend to increase consumption in November and December,
but then spending contracts in January and early February. U.S. cattle-on-feed inventory as of October 1 came in at 97.4 per cent of Oct. 1 2011 which was within analysts’ expectations. The number that caught the beef industry by surprise was the September placements figure, which was only 81.2 per cent in comparison to last year. This lower number comes on the heels of a 10 per cent year-over-year decline in feedlot placements during August. In the short term, I’m looking for seasonal strength as packers prepare for the U.S. Thanksgiving but then the fed market may ease into December. U.S. fed marketing weights are nearly 25 pounds above last year, which has offset the marginally lower on-feed number. I don’t see a drastic change in the beef production estimate for the fourth quarter and the market is fairly comfortable with the nearby supply situation. However, beef production in the first and second quarter of 2013 may be down from current projections given the recent placement structure. April live cattle futures have been percolating near contract highs and the market appears to be incorporating a risk premium due to the uncertainty in production. Canadian cattle-on-feed numbers are expected to run similar to
last year during the fall and winter period. Once the XL plant is back on stream I expect Canadian beef production to be similar to yearago levels. The Canadian weekly average slaughter during July and August was 52,000 head per week but has dropped to 35,000 head in October. I expect the slaughter to move back up to average levels later in December.
CONSUMER DEMAND Price-conscious consumers have displayed very volatile spending behaviour. Fast-food sales are not as high as earlier anticipated and restaurant spending usually moves through a seasonal lows in September and October. Retail demand has been stagnant as ground beef prices remain near historical highs, but top-value steaks have had periods of weakness. Packers are now preparing for the U.S. Thanksgiving weekend and wholesale beef prices are back up to historical highs. This has also translated into a firmer U.S. cash cattle market. Spending behaviour generally increases in December followed by contraction in January and February. Consumers temporarily going on diets also cause demand to ease at this time. By March, people are tired of winter and tend to head
on vacation or at least treat themselves by eating out as the holiday debt has been brought down to manageable levels. Looking at the North American economy in general, I don’t see much of a change over the next six months. Unemployment, disposable income and consumer confidence will likely remain rather flat which will keep the beef demand equation similar to last year. The fed market may strengthen further in November but then stabilize in January and February. I’m looking for some higher values in March barring any adverse event to influence beef demand. The Canadian fed market will could edge higher up to the $112 in the short term and then trend up to the $120 level by mid-March.
because the smaller farmer backgrounding operator is influencing the feeder market, whereas we haven’t seen this market influence for a number of years. Year-to-date Canadian feeder steer and heifer exports to the U.S. for the week ending October 6 were 111,183 head, up a whopping 69 per cent over last year. A medium-flesh large group of 100 Charolais cross steers weighing 495 pounds sold for $174/cwt in mid-October. Black Angus heifers weighing 477 pounds traded at $166/cwt in southern Alberta at the same sale. Barley prices continue to edge higher and feedlots need $120/ cwt to break even on feedlot cattle that will be marketed in November. The industry is experiencing equity erosion. This limits the upside in the feeder market in the short term. One bright spot for feeder cattle is next fall and I’ll provide an early heads up. Corn prices will drop under $4. per bushel next September and feeder prices will move to fresh historical highs. Buying bred heifers or quality cows this fall may be the opportunity to capture good value longer term. †
FEEDER SUPPLIES Tighter supplies are influencing the feeder market more than the slaughter price structure. Despite record-high feed grain prices, calf and yearling values have been similar to last year with the U.S. market showing more of a premium. Winter wheat pasture is in good condition and many farmers in the Midwest have plentiful forage after silaging the poor corn crop. This may be skewing the feedlot placement number
Gerald Klassen analyzes cattle and hog markets in Winnipeg and also maintains an interest in the family feedlot in Southern Alberta. For comments or speaking engagements, he can be reached at
[email protected] or call 204 899 8268.
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WhiCh Crop to seed first? » paGe 16 Publications Mail Agreement # 40069240
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UFA 2011 GTG AFE.indd 1 Fileearlug Name: UFA 2011 GTG_Earlug_AFE
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Project: Going to Grass Campaign Image Area or Trim: 3.08” x 1.83” Publication: Alberta Farmer Express
1 shi
Vo lu m e 8 , n u m b e r 9
Dominoes falling as beef industry ‘rightsizes’
april 25, 2011
KeepinG WatCh from above
END OF THE LINE? } XL Foods
processing now consolidated at Brooks, after Moose Jaw and Calgary plants shut down By madeleine Baerg af CONtRIButOR | cAlgAry
T
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he recently announced shutdown of XL foods’ beef kill plant and fabrication facility in Calgary is no surprise to those in the know. “No, it’s not a shock,” said Herb Lock, owner of farm$ense Marketing in Edmonton. “the packing industry in North america is rightsizing itself. as soon as you have excess capacity, everybody is losing money. It’s not just a Calgary thing, it’s not just an alberta thing, it’s not just a Canadian thing. this is happening on both sides of the border.” that view was echoed by Charlie Gracey, a cattle industry consultant and current board member with the alberta Livestock and Meat agency. “We’ve known for quite a long time that the herd was being sold down,” said Gracey. “It’s always regrettable to see a decline in what might be seen as competition. But there isn’t enough cattle herd to service the plant.” Lock estimates the packing industry is currently about 25 to 30 per cent overbuilt across the Pacific Northwest. Most of the processing facilities were built several decades ago, in a time when herd numbers were significantly higher, he said. Given that processing is a margin business, the only way for processors to make money is to operate at near full capacity. With today’s herd numbers at a 50-year low and the three- to fiveyear outlook not indicating much improvement, Lock sees the XL closure as a “nimble” preemptive move. Competition for live cattle sales shouldn’t diminished, said Bryan Walton, CEO of the alberta Cattle feeders association. “I don’t think the closures are going to have a material effect,” said Walton, noting XL foods still operates the Lakeside plant in Brooks. Essentially, the Calgary and Brooks plants were competing for the same animals. selling the Calgary facilities, which are fairly old and sit on valuable real estate, makes good business sense, he said.
BSE boost
While BsE has been devastating to all parts of the beef industry, Lock believes it may have had a positive — albeit short-term — influence on XL’s Calgary facilities. “the plants’ lives may have been extended by a
shutdown } page 6
AFAC ConFerenCe
JBs
oPerations, gloBal aQuisitions
at strangmuir farms south of strathmore, Kerri ross (left) and Becky tees spend their days riding through pens checking on the health of the cattle. Kevin LinK
Testing for bSe worthwhile FaIrLy LOw } Cost would be about $40 per head, but actual
financial benefits are uncertain By ron friesen staff
A
new industry study concludes a voluntary BsE testing program for cattle could help boost Canada’s beef exports to asia. But it cautions that BsE-tested beef would only be a niche market and the demand for it might be limited. testing alone may not fully restore Canada’s beef markets lost to BsE in Japan and other asian countries, says the study by the George Morris Centre in Guelph, Ontario. But it’s still worth considering, said al Mussell, the study’s lead author. “We think this has got potential. I think it needs to be explored further,” Mussell said following the study’s release March 31.
“I think it does give the impetus for people to take a serious look at it and say, ‘hey, this is something we could take advantage of.’” the study funded by PrioNet Canada, the alberta Prion Research Institute and the alberta Livestock and Meat agency weighed the costs and benefits of voluntarily testing cattle for BsE. It found the cost fairly low — just over $40 a head, or about five cents a pound carcass weight. that wouldn’t burden processors with huge added expenses and “drag down the operation of a beef plant,” Mussell said. He said Japanese importers have periodically asked for BsE-tested beef over the past five years, so the demand for it should be there. But whether the economic benefits
“We think this has got potential.” aL MussELL GeorGe Morris Centre
of testing outweigh the cost is hard to say. a 2005 analysis by Rancher’s Beef, an alberta processor no longer in business, concluded BsE testing would increase the value of beef sold to Japan by $75.71 per head.
see Bse testing } page 26
Consumers must lead Changes in animal welfare } Page 33
NOVEMBER 12, 2012
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Home Quarter Farm Life SEEDS OF ENCOURAGEMENT
Do good things come to those who wait? People who can wait don’t expect to have everything all at once ELAINE FROESE
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n experiment was conducted in 1992 at Stanford University, in which four-year-old children were given a choice. A marshmallow was put in front of them; they could either eat the marshmallow now, or wait 15 minutes, after which they would be given two marshmallows. Researchers met the kids again as teenagers. What do you think happened? Those who waited turned out to be better in various ways: they got better marks, “were less prone to impulsive behaviour” and, according to tests, were “more likely” to be well adjusted. After the marshmallow test came a deluge of other, similar tests, with similar results. Patient children don’t often become impulsive teen-agers. Which means they don’t often turn into fat teenagers, or drugaddicted teenagers. (William Leith, Telegraph article July 2012.) This famous study was crafted into a book by Joachim dePosada Don’t Eat the Marshmallow which has sold millions of copies around the world. (Google his Ted.com video.) I had the delightful experience of meeting Joachim at a speakers’ conference a few years ago, and he was brought
to mind recently during two tough coaching situations. My concern is this. The next generation is hard wired to have things happen instantly via texting, emails, microwaves, drive-throughs etc. Frank Partnoy, the author of Wait agrees with me. How does this impact farm families? 1. We wait for a harvest, because we know that the seed, soil and weather conditions all need to be aligned to produce a great crop. Younger farmers are stressed about the price of the land that crop is on. They don’t know if they should jump into more risk and debt, or be patient renting most of their land. 2. We wait for land prices to rise, so we can cash in when we are old. Well, what does greed have to do with this? Do you have more than enough already? The latest October 2012 issue of Country Guide has lots to say about buying land. Why are you making the next generation wait to have their own equity when you as a founder or wealthy landlord have more than enough for your own coffers? Would it not be a wonderful thing to help get the next generation started on building its own equity? 3. We wait for people to grow up. Due to the “instant” and self-indulged nature of youth, I am concerned that some successors are not showing up as adult business partners to
the farm vision table. “When is he ever going to grow up and act like a calm, rational adult rather than exploding and leaving the conversation?” I’ve mentioned before that one of the weaknesses of young farmers is their inability to do conflict resolution well, because they have never had to win their own battles. Mom and Dad have covered for them. It’s time for everyone on your farm team to show up as an adult, with collaborative skills to find win-win solutions for all. Check out “How to Have Better Family Fights” on the home page of www. elainefroese.com. 4. We wait for disposable income to buy the “fun stuff.” My l981 story of being a new bride with wooden Coke box end tables in my home gets old pretty fast with the next generations whose homes from the start look as good as their parents’ homes. I am not criticizing the need or want for beauty and nice things. But I am curious about the mechanical toys that are in the shop, when the next generation is stressed about paying down long-term debts. Those who can wait, don’t expect to “have it all at once.” I know farmers need to have more fun in their lives, just at what expense? 5. We wait for the founders to make a decision to sign us on as shareholders. This waiting creates huge stress and anxiety
the best decisions can be evoked from the software. The expertise that advisers can provide is sometimes frustrated by the inability of folks to wait for all the data to be processed. Good decisions require good input and thought. Thinking takes time when you are assessing different scenarios and outcomes. Do good things come to those who wait? Yes, I think so. I was the kid who could leave the marshmallow on the table. As a coach, I am saddened by the grief of the family with successors who do not understand the value of being able to wait. What can you do this fall to make your waiting time more productive, and less stressful? Visit www.elainefroese.com/ contact and tell me your story. Let me know if you would like to join my group coaching teleseminars in 2013. We can all learn from each other. Yet those who wait for the Lord will gain new strength; They will mount up with wings like eagles, They will run and not get tired, They will walk and not become weary. (NASV). (One of my favourite Bible verses to encourage you.) †
when the future is uncertain. I just spoke to a 56-year-old who owns nothing while his 80-something father hangs on tight to land, and threatens to join his titles to a non-farming child. That stinks. Sometimes folks wait too long to take action of a situation that is hopeless. How do you know? Past performance is a pretty good indication of future behaviour. This is the reason why another young couple I coached has decided to leave the farm and invest in a different career. They were tired of waiting for the choices of the founders to change to accept them as the successors. They moved on, and decided to preserve some family relationship. 6. We wait for the “experts” to tell us what to do. Really? Coaching is about helping farm families discover what kind of farm they want, and the way they relate as business partners, and happy family team members. Paul Hammerton, of MNP’s Swift Current office and his colleague Janet Moen showed me the value of their software called “FarmHand.” This is an amazing program to help farmers make better-informed financial decisions using all the farmer’s own data to reflect back to the farmer what his costs of production are for each crop, and ratios like debt to equity and a host of others. Paul and Janet often have to wait for all the data to be collected properly, so that
Elaine Froese, CAFA, is a member of the Canadian Association of Farm Advisors. Her book, Do the Tough Things Right, helps families make decisions to reduce their communication stress. Book her for your next ag group event at 1-866-848-8311. Contact Elaine at www.elainefroese.com/ contact. She is waiting to become a motherin-law in July 2013.
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PHOTOS: CHRISTALEE FROESE
Peter Kotylak (r) has made a 15-year tradition of driving his cattle home by horse. Though the cattle could be trailered the 13 kilometres home, Kotylak said the day spent with family and friends on horseback is an annual activity he looks forward to every fall.
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The oilwells of southeast Saskatchewan form the backdrop to parts of the cattle drive.
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NOVEMBER 12, 2012
Home Quarter Farm Life POSTCARDS FROM THE PRAIRIES
Life’s secrets, according to you… Part 3 What makes your soul sing? I’d love to hear from you JANITA VAN DE VELDE
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ur children are growing up in a world that has stripped away the need for any imagination. It’s all laid out for them. Every conceivable story from vampires to wizards to werewolves and back. Throw in technology and social networking, and everything is just one click away. We had “The Littlest Hobo,” “The Beachcombers” and “CBC Sports.” No offence to any of these fine programs, but as my clever friend Ross Macnab said, it was like Canada was one giant living room and no one could find the remote. However, even if you were allowed to watch all three, back to back (yes, there used to be rules about how much TV you could watch), you were left with some serious gaps to fill. Filling these gaps required extremely vivid, fantastical imaginations. Simply put, we had to use our own brains to figure things out. Pull out an encyclopedia and do some research. How fun were those? Ah, the smell of them. I will never forget the smell of them. And heaven forbid, we had to talk to people... have deep conversations to learn from others. Are we on the verge of losing that? Will our children know what it’s like to sit and chat with someone for hours? To lay their souls
bare in front of another human being? Kids nowadays are laying other things bare. On Facebook. I digress... I really just wanted to say kids nowadays. @#$%. I’m getting old. And may I just take a moment to thank the merciful Lord in heaven that Facebook wasn’t around when we were growing up. A significant majority of us would still be in jail. Considering we’re up against wizards, werewolves, vampires and “Hunger Games,” how can we compete? Save for growing a beard and biting my children (rather fiercely) on the neck, I’m not entirely certain how to get their attention. My best guess? We must find a way to prove to them that real life is just as magical as make-believe. Even more so. We need to share the secrets of life, as we know it... the wisdom, the humour, the regrets, the longings, the moments that make it all worthwhile. So when the werewolves lay sleeping and the spells have been cast, what is it that I want my children to know about real life? Here’s where I need your help. I’ve come up with a list of questions. Things I think about a lot and topics that interest me to no end. My plan is to get responses from as many people as I can — through my blog, email, face to face, in dark, shadowy recesses of back alleys throughout the country — and compile everyone’s answers to the following questions. By sharing your responses with me, you hereby to and furthermore with fore-here-to-with-
and-in grant me permission to use them as part of my upcoming articles. (Incidentally no, I’m not a lawyer. However, I should likely get one.) I will never use your name; all responses will be kept anonymous. Your thoughts will be compiled as part of the overall response to each question. You can share your responses by sending an email to janita@sasktel. net. Create an anonymous email account if you want; I don’t need to know who it’s from, I just want
regrets, and doing something about them, is the magic of life. Finding beauty in the unexpected is the magic of life. Finding beauty in others is the magic of life. Finding beauty in yourself, and sharing your gifts with the world, is the magic of life. And who knows? It may even become part of a book one day. Now that’d be a book I’d want to leave for my children... seeing as I’ll be spending a significant portion of my time explaining
Finding beauty in yourself, and sharing your gifts with the world, is the magic of life to hear from you. Think about the questions, answer as honestly as you can and only answer the ones you feel like talking about. (Please number your responses, so I don’t erroneously drop answers in beside the wrong questions... although that may provide some cheap entertainment.) Your responses are what I want to share with my children one day. Your responses are what I want them to know about real life. Why? Because learning from each other is the magic of life. Finding humour in our collective ridiculousness is the magic of life. The ability to laugh at yourself is the magic of life. Recognizing
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my first book to them. I imagine that conversation will go something like this: “No, I was not a raging alcoholic. We just used to drink a lot. Of course it’s fiction! Who told you that? As if. Don’t believe everything you hear. I suppose you’d jump off a cliff with that person, too? What do you think I am, a monster? Repeat after me, fiction. What? Me, smoke? Never you mind. If I ever catch you smoking, I’ll make you chain-smoke Export A Green Death until you spew. If that doesn’t kill you, I will. That’s all you need to know. What’s that? Go to your room.” So without further ado, here are my questions to you. Please send me your responses by December 1. Yes, that’s two weeks away. One, two, three, GO: 1. Who (or what) is your greatest love? 2. What (or who) is your worst fear? 3. What is your biggest regret? Have you done something about it? BY DAN PIRARO
Bizarro
4. What’s the one topic we should talk about more openly? (Translation: something you wish you could bring up more often but just don’t, for whatever reason... ) 5. What’s the most useful lesson you’ve ever learned in school? (From Kindergarten to PhD... pick the most useful lesson.) 6. What’s the most embarrassing thing you’ve ever done? (This is a very tough choice for me. I’ve narrowed it down to 3,624 incidents.) 7. What’s the best financial advice you’ve ever received? 8. If you could go back and tell a younger version of yourself just one thing, what would it be? 9. What’s the one thing you wish you’d spend less time worrying about? 10. What’s one simple, magical thing that makes you smile every time you experience it? (Example: the sound of a child giggling, the smell of freshly mowed grass... ) 11. What’s the one thing you wish someone would have told you? 12. If you could ask God one question, what would it be? 13. What’s the greatest lesson you’ve learned in life thus far? 14. If given the opportunity to have a one-minute glance at your life 10 years from now, would you take it? Why or why not? 15. Thinking back to your ideals and dreams for the future when you were younger, has your life turned out as you thought it would? Why or why not? 16. At the end of each day, when you pause for a second to contemplate your life, what do you say to yourself? 17. What’s your secret to leading a fulfilling life? Put another way, what’s the motto you live by? 18. If you could make just one wish for your children, what would it be? And promise me something? Do what makes your soul sing. Even if you can only carve out a few hours a week... it’s up to you to make it happen. Learn how to play the piano, paint, volunteer, write, help out a family in your community, go back to school, watch a movie with your spouse, pack a picnic and take your kids to the park, donate to charity, pet cats at the Humane Society... whatever it is, just do it. It doesn’t matter what other people think. They’re not the ones you have to answer to. In the end, I don’t know where your road will take you. But I do know that giving of yourself and following your dreams — even if at the moment they feel tiny and inconsequential — will make you feel better. That’s a promise. A soul that sings is magical that way. † Janita Van de Velde grew up on a farm near Mariapolis, Man. She holds a bachelor of science degree in agricultural economics from the University of Manitoba, and has worked for a financial institution since graduating. She lives in Regina, Sask., with her husband Roddy and their children Jack, Isla and James. Her first novel, Postcards Never Written, was the recipient of the Saskatchewan Reader’s Choice Award and also listed by CBC as one of the top funny books in 2009. She donates a portion of proceeds from the sale of her book to World Vision to help those less fortunate. For more information, or to order her book, visit her website at www.janita.ca.
NOVEMBER 12, 2012
grainews.ca /
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Home Quarter Farm Life
First-season honey harvest What a learning experience — plus, over 60 pounds of honey BY TERRA WEAVER
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colony of bees can be perfectly reasonable all summer, but with fall comes a decrease in temperature and an increase in bee hostility. My husband Ron and I experienced a little display of this (and reasonably so) when we went to dismantle their home and steal some of the food that they had worked very hard to preserve. There are many different ideas on how to remove bees from their honey frames. The books recommend knocking the bees off with one or two brisk shakes of the frame. We tried this, but shaking the frames only seemed to remove a few of the approximately 200 bees that were on each one. The book also says that you can brush the bees away from their frames with a soft bristled “bee brush,” but warned that brushing the bees can upset them. The book was correct. However, this was the most effective way we found to remove the bees, and after a few minutes of coaxing and brushing, they started to head back into their hive. At the house, we began to process the honey. First, we removed the beeswax cappings from the comb. In the hive, the bees fan their wings over the honey in the comb until the moisture level is just right (around 13 to 15 per cent), then they cover the comb with a wax cap to preserve the honey inside. Once the cappings are removed, the honey is ready to be spun out of the frames using centrifugal (spinning) force. We were excited to test our Rubbermaid centrifuge. A brand new stainless steel two-frame centrifuge costs $425. However, a brand new Rubbermaid garbage can, some threaded rod and a little creativity (Ron’s, not mine), costs $40. It worked like a charm and we can extract 20 pounds of honey in less than 20 minutes. After spinning the honey from the frames, we filtered it to remove the bits of wax capping that had fallen into the centrifuge. A fine kitchen strainer or cheesecloth works, but we used a honey storage tank with filters that fit inside. The honey tank also has a “honey gate” on it, which is a valve that makes putting the honey into containers a very easy job. We removed honey from the hive three times this year. The first time we were just very curious to see what our honey tasted like, so we harvested an early batch on July 31 and got 20 pounds of crystal-clear canola honey from only four frames. The second honey harvest was intended to be the final one. September 12 seemed like a good time to assume that the nectar flow was over and it was time to harvest what the bees had produced. There had been a few frosty nights, and we were fairly certain that the flowers were finished for the season. We extracted another 20 pounds. After this harvest we returned the frames to the bees so that they could clean up the bits of
honey that were left behind as part of their fall feeding program. On October 9 we visited the hive with the intention of removing the cleaned-up honey super and to get the bees ready to be wrapped for winter. Removing the super we discovered… you guessed it… another 20 pounds of honey. It had been a warm September and early October, so there had still been thistle and clover flowers available for the bees. Because this thistle honey hadn’t been in the hive for very long, it has high moisture content and therefore is very runny. In our first year as beekeepers, we were able to harvest over 60 pounds of honey from our bees! This does not include the frames
of honey that the bees have in their brood box, stored as their winter feed source. It has been an exciting first honey season. We are doing a lot of research and reading everything we can find on how to successfully winter our bees. Live bees in spring, healthy and ready to go foraging for nectar as soon as the first dandelions poke their heads out of the grass will mean more honey for us in the fall of 2013. We hope that Mother Nature will take it easy on our little colony of bees as they settle in to their newly insulated and wrapped hive to eat and rest in the frosty months ahead. †
The beeswax cappings have to be removed.
photos: terra weaver
Our first season yielded over 60 pounds of honey.
Terra Weaver writes from Lloydminster, Alberta.
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NOVEMBER 12, 2012
Home Quarter Farm Life SINGING GARDENER
Well howdy folks, howdy Do you have any deer-proofing ideas? What works in your area? TED MESEYTON
O
nce again, it’s Singing Gardener time. So pour yourself a cup of regular or green tea with Grainews in hand and imagine that I’m sitting across the table from you.
WELL HOWDY FOLKS, HOWDY Those were opening words I often used while travelling with a country music band during live stage performances as its MC. From a way back then, I’ve carried forward that same friendly greeting when welcoming folks to my live gardening appearances. The familiar greeting of “howdy” is an abbreviation of “how do ye, or how do you do.” I guess I’ll never
SUE ARMSTRONG
LOVE HEARING FROM YOU Do you have a story about a farm or home-based business? How about some household management tips? Does someone in the family have a special-diet need? Share some of your meal ideas. Send them to FarmLife, 1666 Dublin Ave., Winnipeg, Man. R3H 0H1. Phone 1-800665-0502 or email susan@ fbcpublishing.com. Please remember we can no longer return photos or material. — Sue
lose that homespun country spirit that is so well endowed within me. Nor would I want to! I need no imagination to recall my younger years. I think back to when I regularly listened to country music radio right here in Portage la Prairie from CJGX in Yorkton at 940 on the AM dial. I think the station only had 1,000 watts power at that time, but seems to me its coverage area was vast throughout much of Saskatchewan and Manitoba. Those good ol’ classic country, folk and western tunes are stored away in the heart of my memory bank.
PORTULACA Thanks to a reader from Alberta who wrote to me in September: I live near Gibbons, Alta. which is about 30 km north of Edmonton. Is the portulaca that you are referring to in your Grainews article Sept. 10/12 also known as “Purslane?” I inadvertently brought some into my garden via some cabbage plants from a local greenhouse. Not knowing what it was (and kind of pretty) I let some mature and of course go to seed! After doing some research, I realized that it is a rather bad weed that can produce 100,000 seeds per plant and even if pulled out in the blossom stage will still produce seed because the plant has a huge moisture reserve. One can let the plant lay in the sun at 30 C and it will not wilt! To combat the problem, I go into my garden and pick the plants at both the two- and four-leaf stage and completely remove them from the garden. In order to get them at this early stage it helps to look for them in both the morning and evening light. A bit obsessive compulsion but this seems to have gotten them under control although not totally eliminated
at this point. Some health enthusiasts use this as a salad green! I know of at least two other people who have been infested with this plant. I wonder if its ability to reproduce outweighs the health benefits! Should have mentioned that one will see a flush of them about one week after a good rain. I’m still picking the odd one now that the garden is cleaned out. I enjoy your column. Some very helpful tips! JH Note from Ted: Its botanical name is Portulaca oleracea (Latin). Some common names include garden purslane, common wild purslane, duckweed, fat weed and little hogweed. Scientists throughout the world have dug up soil and counted weed seed numbers of about a dozen different weed species including garden purslane, Canada thistle and dandelion. They concluded a good estimate to be about 100 million weed seeds per hectare of agricultural land, although numbers varied among various countries. The average number of seeds per wild purslane plant is amazingly high at over 50,000. Seed survival in undisturbed soil can be between 30 to 40 years. Growing conditions of course play a hand. An old expression stating one year of seeding means seven years of weeding appears to still hold true.
DEER PROOFING Are there any deer in your neighbourhood? It’s really annoying when garden plants become fodder for many four-legged creatures. Perhaps you have some deer-proof ideas or a trick or two for keeping them away from your garden. If yes — let’s hear what works for you and what doesn’t. Some folks still tell me that hanging bars of Irish Spring soap around the outside perimeter of their garden provides a reasonable measure of deterrence. On
another front, you wouldn’t think so because of thorns, but it seems deer are surprisingly fond of roses and have been known to nibble at them from top to ground level, but for whatever reason they leave Rugosa roses alone. Then I discovered that planting scented geraniums in front of rose bushes creates an odour and taste environment that deer and rabbits don’t like. Consider leaving your geraniums outdoors in the ground all winter. Certainly you’ll lose them to winterkill but their scent remains pungent enough to resist invasion by deer even when they’re frozen, withered or blackened. Dig out the dead geraniums each spring and replace them with new geranium transplants. A product called Plant Saver All-Natural Deer Repellent is available from West Coast Seeds in Delta, B.C. It’s both tested and recommended to repel deer, rabbits, mice, elk and moose from garden plants without any smell or unpleasant odour. A single application lasts up to six months and it doesn’t wash away in the rain. Or, there’s Plantskydd deer repellent considered to be among the most cost-effective and environmentally safe products available for home gardens, landscapers and woodlot owners. It has a lingering odour as does the following. Those who like to whip up a homemade formula can blend a mixture of hot Tabasco sauce with some “eggs gone bad” after their “best before date” and sour milk. It becomes very strong, smelly and unpleasant to the nostrils. Dilute it down with some water. Instead of a clothespin on the nose, wear a large neckerchief across the face to help minimize the smell. Sprinkle thinly over plants, flower beds and shrubs, especially those on the outside perimeter of the garden. Whew! I can almost smell it
already but it really works. Even deer show respect.
MOCK MSG I know some folks, myself included, who avoid using food products containing MSG. For those allergic to it, or who wish to make mock monosodium glutamate, here are a couple recipes. No. 1: Grate two tablespoons of fresh lemon peel that’s first been well scrubbed and grate two tablespoons of fresh ginger root. Dry at room temperature or in a very low oven until almost brittle. Add two teaspoons (or less) of coarse sea salt. Place ingredients in a seed grinder or clean coffee grinder and churn until quite fine, or use a mortar and pestle. No. 2: Grate two tablespoons of fresh horseradish root and dry it overnight or longer until moisture is totally gone. Pulverize dried horseradish with mortar and pestle or place in a seed or coffee grinder with two tablespoons of dried mushrooms and two teaspoons of whole mustard seeds. Whiz until powdery then mix in two teaspoons of fine sea salt at the end. Store either of the above in a well-capped spice jar or an empty washed and dried vitamin bottle. Use just pinches. A little goes a long way.
HERE’S AN UNUSUAL BIT OF NEWS … that may interest the sports minded and help prevent concussions. I first became aware of it this past summer. Some of you may have heard it on the radio. Almost sounds too easy, but a scientist says wearing a band of some sort such as a turtleneck sweater around your neck can help retain more blood in the brain and reduce severity from being hurt in contact sports. Sounds weird and strange for sure, but he says it works. It’s a new idea that may be worthy of implementing to reduce the impact of concussions.
THE BLANKET OF LIFE
PHOTOS: TED MESEYTON
In deer country, gardening is certainly a bit of a gamble and nothing can be relied upon as totally deer proof. Not everyone wants a fence to keep them out. It can be expensive and detracts from a natural setting. Deer tastes are puzzling and sometimes they leave a certain plant alone for years and then suddenly consume it for a meal. Deer in one area will avoid what deer elsewhere will eat. Bachelor’s button, cosmos, dusty miller, nicotiana, snapdragon and zinnia are seldom bothered by deer. Perennials such as bergamot, foxglove, lupin, oriental poppy and peony are generally left growing undisturbed. Deer seldom touch asparagus, corn, chives, garlic, onion and rhubarb. Most aromatic leaf herbs are sniffed at by deer but rarely eaten with the exception of parsley, sweet basil and tarragon. However, in extreme cases of hunger, deer will nibble at almost anything.
This is Ted Meseyton the Singing Gardener and Grow-It Poet from Portage la Prairie, Man. It’s called the blanket of life. Time moves quickly and catches many of us unaware of the passing years. Before we know it, autumn of life arrives for many. How did it get here so quickly? Winter of life will also come and nobody knows how long it may last. What season of life are you at? Whatever you’d like to accomplish in life, don’t wait. Do it now! We can never be sure whether this is our last season or not. We have no promise we shall see all seasons of life. Say all the things you want your loved ones to hear now and remember that God gives us memories so we can have roses in November. My email address is
[email protected].
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SEE THE BIG PICTURE. Gain a new perspective on your farm, family and future with this informative video series from Agvision, available at grainews.ca Video topics include: “Please fix our daughter-in-law!” According to Dr. John Fast this is a very common complaint in farm businesses and a most convenient person to blame when things are not going well. Farmers Without Wills An untimely death without a will jeopardizes the financial viability of your farm and could leave your family in an absolute mess.
Dr. John Fast is a leading expert on farm family business in Canada. As the founder and director of the Centre For Family Business and with his background as a family counselor, educator, and entrepreneur, John is sought after for his ability to motivate and inspire audiences to make a difference.
Who is the Boss? Family businesses face enormous complexity and this can result in role confusion and internal conflict. Who is the boss? Dad? The farm manager? Changing the Farming Business Model The number one reason Dad has trouble making the changes to the business model desired by the next generation is because of Dad’s fear the new generation will run the farm better than he did.
Don’t miss any of these informative videos – visit www.grainews.ca AGCanadaTV is sponsored by
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