Use Your Off Season

Guest author Dean Heffta, published Corn+Soybean Digest

There’s no slow season anymore! Farmers tell me that often. With crop and business demands, it can feel like the year is just one long string of activity without the spikes and dips we used to experience.

With that said, every business – whether its seasons are set by the weather or not – needs to create and utilize an “off season.” LeBron James demonstrated the power of using the off-season after the Miami Heat lost the NBA tournament in 2011. He invested his frustration that following summer into training to be the best low-post player he could be. To do that, he sought coaching from the great low-post player, Hakeem Olajuwan. The rest, as they say, is history. James went on to lead the Heat to back-to-back league championships in 2012 and 2013.

We’re not NBA stars, but we are each ‘pros’ in our own way. I recently met a farmer who shared that he is very deliberate in how he uses his time between the peak seasons of planting and harvest. He has four areas of focus: equipment (the team goes through everything when they are done using it for the season), book work (he gets on top of the accounting and business planning to keep from getting behind), people/learning (he goes to various conferences and meetings to get new ideas, always bringing a different employee along to give them new exposure to the business), and recharge (without planning, it can be easy to go a year without taking time off or recharging the battery).

While every farm’s off-season is going to look a little different, there will be a few common elements.

• Review/learning – Sit down to learn from the things that didn’t turn out so well. Look for ways to make changes in the future in those areas.
• Skill development – Learn a new technology or skill that will be helpful in the future or seek advisors that have those skills.
• Planning – It can be hard to do long term planning when you’re in the middle of the fire. Use the off-season to step back from day to day operations. Consider where the farm is going and explore different ways to get there.
• Writing new plays – An important role of the leader is scripting the plays for the players in the upcoming season. Take time to plan the details so everyone knows what’s next.

Assignment

1. Take a moment to “schedule” your off season time so one season doesn’t just run into the next.
2. Consider which areas – if worked on – would make the biggest difference to the farm over time.
3. Identify three specific areas to focus your effort on.
4. Execute your off season plan.

Reprinted with permission of Corn+Soybean Digest
Photo obtained from: http://www.flickr.com

Planning for 2014 cash flow

Guest author Paul Burgener, published Farm Futures story

Short 2012 crop creates concern for new crop demand; lender relationships critical

Let’s face it: Most farmers have been on a roll when it comes to making money. 

“Making money in farming for the past six years has been like falling off a log,” quips Terry Kastens, a Kansas farmer and former Kansas State University ag economist. “Nobody has had a poor relationship with their lender for the past 10 years.” 

This year might test those relationships, as higher prices for land, machinery and inputs are combining with lower-expected crop prices. 

“Renewal time this fall will be more difficult, with cash flow budgets tighter than they have been in years,” says Lewis Coulter, vice president and agriculture lender at Platte Valley Bank in Bridgeport, Neb. “We are going to need to manage costs better as margins get tighter.”

The past several years have allowed farmers to strengthen balance sheets and prepare for a down year. Average farm debt is lower, putting farms in strong equity positions heading into what might be a leaner profit year. The current debt-to-asset ratio for U.S. farmers is 10.2%, according to USDA’s Economic Research Service. The same ratio was 13.5% in 2003, and 19.4% in 1983 just as the farm credit crisis began. Even so, operating loans will need to cash flow.

Tighter cash flows
Lower prices for corn and wheat, along with uncertainty in the soybean market, will likely open cash flow projections with smaller gross revenue numbers than in the past few years. Farmers with a good handle on their costs are going to be better prepared to develop projections that will be acceptable to lenders.

Cost control starts with cash rental rates that have been bid up to match high commodity prices in the past few years. This could be the year to adjust those rates back a little if the farm has adjusted rental rates higher as commodity prices increased.

For those farms that were late to the game in raising rents, there might be a lag going back down, putting pressure on the cash flow projection.

“Those same guys that are overbidding for land today are the same ones that didn’t pay enough rent on the way up,” Kastens notes.

Take advantage of discounts
Suppliers recognize this will be a tighter cash flow year and will be knocking on doors with attractive deals, trying to get sales made to quality operators. Take advantage of early purchase discounts and favorable financing to get seed, fertilizer and crop protection inputs priced before spring.

Lenders should be willing to support the purchase and financing of inputs with favorable terms that will help the cash flow. Disclose those purchases and credit arrangements to the lender at renewal time, but take advantage of those low to zero interest plans when they are offered.

On farm research pays
Farms that were doing their own research during the profitable years have an advantage: knowing where their production system can be tweaked to save a few dollars per acre in tight cash flow years.

The time to experiment with a new technology or lower-cost product is when times are good and the farm can absorb a small loss. Now is the time to implement those cost-saving ideas that worked in your on-farm plots or other tests.

Lenders are more willing to support an experiment when there is adequate cash flow to cover a failure. Low interest rates and better-than-average prices for the past few years have encouraged banks to open hedging lines for customers that were not using these marketing tools.

Lender relationships critical
Long-term relationships with good agriculture lenders will help farmers get through the next couple years as cash flows tighten.

“The stable bank that is familiar with your system and has a long-term agricultural commitment to area farmers will be a good partner as margins tighten,” says Coulter.

Long term, using caution and a prudent financial strategy is the best way forward in potential lean times.

“We don’t know what will happen if there is another crash because very few of the lenders from the 1980s are still around,” concludes Kastens. ff

Farm Science Review Breaks New Ground

Ohio’s premier agricultural event, Farm Science Review (FSR), will take place September 17-19 at the Molly Caren Agricultural Center in London, Ohio.

FSR attracts more than 130,000 farmers, growers and producers from the U.S. and Canada who come to learn about the latest in agricultural research, products and services and to experience educational exhibits, presentations and demonstrations relating to natural-resource management and the crop and livestock industries. 

Marking its 51st year, this year’s theme “Break New Ground” will showcase the latest technology, equipment and innovations in the agriculture industry today.

Experts from The Ohio State University will discuss topics ranging from farming techniques to improving water and soil quality and combating invasive species.

According to the FSR website, this year’s three-day event will also feature:

• Daily harvesting, strip-tilling, global positioning, manure and tillage demonstrations
• Information about farm health and safety, farm management programs, financial and economical information, the environment and human and community development
• Antique farm equipment

Three individuals will also be inducted to the FSR Hall of Fame, including Don Breece, past assistant director of the Agriculture and Natural Resources program at The Ohio State University Extension, the late Dan Kush, an advocate and friend of the Gwynne Conservation Area and Marti Smith, co-owner of American Small Farm. These three individuals have been selected for induction in recognition of their contributions to the success of the Farm Science Review.

For a full schedule of events, click here.

Are you planning to attend Farm Science Review? If so, what are you looking forward to the most?

Photo obtained from: fsr.osu.edu

Handing Down the Family Farm

Planning how to pass along a farm from one generation to the next can be a difficult and emotional issue for many farming families. But as tough as it might be, succession planning is critical to the survival and future of every family farm.

According to the Department of Agriculture, family farms account for 98 percent of all the farms in the U.S. and for about 85 percent of the agricultural output. It’s estimated that 70 percent of the nation’s farmland will change hands in the next two decades. Yet, many farmers have an insufficient or no plan concerning succession. Without a succession plan, these family farms risk going out of business.

“Less than half of farms actually have a plan and, for the most part, this plan is some sort of estate plan or will,” said Bryce Knorr, senior editor for Farm Futures magazine in a High Plains Journal article. “But it’s not really something for making sure that the farm continues as an entity. You have to take the next step to really develop a plan for transitioning the business.”

Lee Watson, a corn, soybean and wheat farmer in Bellevue, Ohio, plans for his son, Dusten, to take over the family farm in the future and is working with an estate attorney and an accountant on a plan to do so.

“I’m in the process of transferring shares of the farm to him,” said Watson in USA Today. “It’s important to do for inheritance tax purposes. It can be a large amount of debt for a person to start out with on their own. I’ve always worked for this. I’d like to see that land and the operation stay within the family.”

Are you developing a succession plan for your family farm? Here are recommendations from AgWeb.com about how to navigate common succession pitfalls.

• Take action: The biggest mistake farmers make is not taking the first step. Begin the planning process by holding a family meeting with a clear agenda and goals that are defined before the meeting. The purpose of the meeting is to create a preliminary plan.

• Consider your options: There is no one-size-fits-all option when it comes to handing down a farm and farmers need to weigh all their options. Determining the best business model for the operation is a crucial first step. For example, an LLC or limited partnership allows the elder generation to maintain management in the farming operation while gradually transferring ownership and responsibilities. 

• Don’t worry about offending family members: Succession planning is an incredibly emotional issue and it’s not uncommon for families to avoid confrontation to keep the peace. This could lead to unqualified or disengaged children running the farm. Honest and open communication is vital to determining the best succession plan and the roles family members will play.

• Don’t let your plan gather dust: Reality check your plan to make sure it works off the paper by playing out hypothetical scenarios. Also, review your plan annually to make sure it’s up to date and relevant. Share it with a succession-planning professional or lawyer for a second opinion.

Photo obtained from: www.familyfarmsgroup.com

Food Dialogues® comes to Ohio

Following a series of successful events in Los Angeles, New York and Chicago, the U.S. Farmers & Ranchers Alliance (USFRA) is bringing Food Dialogues® to Columbus, Ohio.

Tomorrow, August 15, Ohioans can tune in to the free online event from 11 a.m. to 2 p.m. to hear from a panel of experts as they address the social, economic, environmental and emotional aspects of biotechnology and sustainability as it relates to food and farming.

COSI is hosting the event which will be moderated by Joel Riley, morning host for Columbus radio station 610 WTVN. A limited number of in-person guests will contribute to the debate and those listening online are encouraged to ask questions and offer comments. 

This event comes at an appropriate time for Ohioans as we’ve followed a number of heated GMO (genetically modified organisms) debates occurring in states across the country.

The Ohio Soybean Council and Ohio Farm Bureau Federation are co-sponsors of the event and hope it will give Ohioan’s the chance to have their food questions answered.

For more information about the event visit – The Food Dialogues®: Ohio

Photo obtained from: 
http://www.fooddialogues.com/events/the-food-dialogues%C2%AE-ohio

Celebrate National Dairy Month

June is National Dairy Month – a whole month dedicated to celebrating the dairy industry.

According to the International Diary Foods Association, National Dairy Month started out as National Milk Month in 1937 as a way to promote drinking milk. It was initially created to stabilize the dairy demand when production was at a surplus, but has now transitioned into an annual tradition that celebrates the contributions that the dairy industry has made to the world.

In Ohio, we know a little something about dairy.

Ohio has nearly 3,100 dairy farms located throughout the state and is home to 268,000 dairy cows. In 2011, Ohio’s dairy cows produced more than 605 million gallons of milk, meaning that the average farm produced enough milk to provide dairy products to more than 2,500 people each year.

The American Dairy Association also credits Ohio’s dairy industry as an essential part of our state’s success, acknowledging that: 

• Ohio ranks first in the nation in Swiss cheese production, fifth in the number of manufacturing plants, 10th in overall cheese production and 11th in overall milk production. 
• The estimated economic impact of Ohio’s dairy industry is $4.2 billion with a total of 14,350 jobs created for Ohioans.

With nearly 51,000 dairy farms nationwide, 97 percent are family owned. These dairy farmers work incredibly hard to provide safe, wholesome and nutrient-rich milk to the public, while caring for their animals and land. It’s more than fitting that they deserve our thanks. 

Before June ends, be sure to celebrate National Dairy Month and thank a dairy farmer if you know one. It’s also a great time for you to enjoy an extra scoop of ice cream guilt-free! 

Photo obtained from: icecreamjournal.turkeyhill.com

A Very Good Year: USDA forecasts record farm income, with strong key ratios

Guest author Bryce Knorr, published Farm Futures story

While farmers worry about falling crop prices and rising land costs, the government’s forecasting a rosy outlook for 2013.

USDA’s latest estimates project record net farm income for 2013 of $128.2 billion. Even when adjusted for inflation, which is up more than 400% in the last four decades, this year’s income could be second only to the results from 1973.
 
USDA’s projections show 2012 income faltered a bit due to the historic drought, falling $5.1 billion, or 4%, from 2011, the previous record for income in “nominal” dollars that were not adjusted for inflation. But in 2011, both livestock and crop farmers prospected. The government’s latest forecast shows gains would be uneven in 2013.

Sales from crop production would rise 11%, as growers benefit from prices that are still 
historically high. Livestock producers, by contrast, would foot the bill for higher feed costs. Their sales are forecast to rise just 3%.

The government’s forecast doesn’t project differences in key financial ratios between crop and livestock producers. But it’s likely the balance sheets of growers would fare better than those involved in animal production. USDA forecasts an 8% increase in farm assets over the year, likely due to rising farmland values. Real estate would increase 8%, while the value of livestock declines 1%. Farm machinery would take a big jump, rising 9%. Non-real estate debt would rise faster than real estate debt, which would drop. Overall farm equity is expected to grow 8%.

Financial ratios would continue to reflect that strengthening balance sheet, assuming land values hold up. The overall farm debt-to-asset ratio would fall to just 10.2%, the lowest since USDA began tracking the measure of solvency in 1960. Interest as a percentage of both income and expenses would also fall to record lows. Even return on equity, which began to falter under the weight of rising land values from 2006 to 2010, would edge higher to 5.2%.

While the forecast doesn’t account for any change in farm program spending, in the current environment that might not matter, for now. Direct government payments as a percentage of net farm income are expected to fall to 8%, their lowest level since the 1970s.

Photo obtained from: http://www.ers.usda.gov/amber-waves/2013-march/farm-income-forecast-to-remain-high-in-2013.aspx#.UWWFFhmvzHw

Commodity Classic Brings Farmers Together

For farmers who want to be in-the-know about agriculture trends, issues and the future of farming, Commodity Classic, America’s largest farmer-led, farmer focused convention and trade show, is the event to attend.

The Commodity Classic website describes the three-day experience as a can't-miss event for America's soybean, corn, wheat and sorghum farmers. It provides farmers with an opportunity to see the latest farming innovations first-hand, hear game-changing ideas from the people who created them and meet growers and ag leaders from across the nation.

An annual event, Commodity Classic is presented by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers.

This year’s convention and trade show recently took place in Kissimmee, Florida, and proved to be very successful with record attendance totaling more than 6,000, including a record number of more than 3,000 corn, soybean, wheat and sorghum growers.

Farmers in attendance were offered a wide range of learning and networking opportunities in the areas of production, policy, marketing, management and stewardship.

There was even an opportunity for Ohio farmers to share their thoughts about how they plan to manage their risk in 2013. Watch this Ohio’s Country Journal interview to see what farmers near you are saying.

And, for the fourth time, Secretary of Agriculture Tom Vilsack spoke to attendees, this time encouraging farmers to continue pushing Congress for a five-year Farm Bill.

If you missed this year’s Commodity Classic, don’t worry. It will be taking place again next year from February 27 to March 1 in San Antonio, Texas.

Did you attend Commodity Classic this year or have you gone in the past? If so, what have you learned from the event? Would you recommend it to another farmer?

Photo obtained from: www.agweb.com

March 19 is National Ag Day!

“Generations Nourishing Generations” is the theme for this year’s National Ag Day — Tuesday, March 19. Sponsored by the Agriculture Council of America (ACA), National Ag Day was created in 1973 to enhance public awareness about agriculture and the importance it plays in Americans’ daily lives.

Through National Ag Day, the ACA, which is an organization composed of leaders in the agriculture, food and fiber communities, hopes to increase Americans’ understanding of how food, fiber and renewable resource products are produced, the essential role agriculture plays in a strong economy and career opportunities available in agriculture-related industries.

This year, which marks the 40th anniversary of National Ag Day, the ACA is hosting a variety of events in Washington D.C. — including expert panel discussions and a “Celebration of Ag” dinner — to highlight the significance of U.S. agriculture on a national and international level.

“This is undoubtedly the most important Ag Day program in our history,” said Jenny Pickett, ACA president in a news release. “Our goal is to ensure the eyes of the nation are on the contributions American agriculture makes not just here in the United States, but also around the world. That’s the message we’re taking to the Hill, and the message that will be carried through communities across America.”

If you can’t make it to the nation’s capital, here are ideas from the ACA about how your farm, company or school can celebrate National Ag Day. Materials and additional ideas are available at www.agday.org.

• Ag Day Breakfast — Host an Ag Day breakfast for local government and business leaders. Identify a keynote speaker to talk about agriculture and plan your menu around locally grown and raised agriculture products.

• Pizza Party — Organize a pizza party on a farm, in a classroom or at a mall. Explain how ingredients from kids’ favorite food come from farms and ranches and how each is processed and delivered to the grocery store or restaurant.

• Adopt-A-Legislator — Invite one or more state legislators to visit local farms and ranches or set up a visit to their state office. Leave them with Ag Day materials and local agriculture products.

• Adopt-a-Classroom — Host a classroom field trip to a local farm, ranch or a university’s agricultural research farm. Or, bring the farm to the classroom. This provides a great opportunity for children to learn about career opportunities in agriculture.

• Library Display — Approach your local public or school libraries about organizing an exhibit during Ag Day. You might offer to arrange for a speaker or a lecture series about agriculture. Books about rural communities, animals, farms, etc., could be part of a special Ag Day section that encourages children to learn more about agriculture and how it affects their lives.

Are you planning an event or activity to celebrate National Ag Day? If yes, please share your plans or photos.

Photo obtained from: www.agday.org/

The Effects of Climate Change on Agriculture

Last year’s nationwide drought was the worst since 1956. According to the National Weather Service, last March was the warmest March on record  — nearly 9 degrees warmer than the average — and July was the hottest month on record with back-to-back days in the 90s. In 2011, it was much different — there was a record rainfall in Ohio, severe drought in the lower Midwest and an unusually mild winter.

Climate change is not new to Ohio farmers. But, what do these ever-evolving climate changes mean for farmers and the future of agriculture?

Climatologist consultant, Evelyn Browning-Garriss, says that with a proper understanding of the climate, farmers can plan ahead for the weather changes that are coming.

“The Gulf Stream and other tropical currents are flowing faster, which heat the North Atlantic,” says Browning-Garriss. “This warm phase should continue for 15 or 20 more years and can create hotter summers, more active hurricane seasons and colder winters in the Midwest, Great Lakes and eastern states. Rapid flows of the Gulf Stream can create a warmer Atlantic, which can then create heat waves and ‘flash droughts’ in the Midwest and Great Plains.”

While the weather may continue to be more challenging for U.S. agriculture in the coming years, Browning-Garriss says that Ohio is a comparative winner in general, with more moderate extremes than much of the country. Nonetheless, Ohio farmers should be prepared to maximize water resources and minimize heat stress for the next two decades.

So, how can Ohio farmers adjust their farming practices to an ever-changing climate?

A recent Ohio’s Country Journal article states that the use of no-till in combination with cover crops can play an increasingly important role in a warmer climate with more extreme heat waves and droughts.

“No-till and cover crops can reduce soil temperatures to soften temperature extremes,” says Jim Hoorman with The Ohio State University Extension in Putnam County. “In hot soil, bacteria can actually die. A hot dry summer can quickly reduce yields, but no-till and cover crop use can reduce soil temperatures and retain more water in soils.”

Farmers can also consider these additional climate change options:

• More double-cropping opportunities with longer growing seasons
• Planting more hybrid varieties to mitigate the risk of yield loss (for example, during a drought)
• Relying more heavily on sound agronomics to buffer against challenging conditions

It will be interesting to see what the future holds in terms of our ever-changing climate and how we’ll need to adapt our farming practices accordingly.

What are your thoughts about our changing climate the past few years? Have you or are you planning to adapt your farming practices to adjust for climate changes?


Photo obtained from: http://www.exploratorium.edu/climate/

Popularity Growing for Winter Farmers Markets

While winter may be upon us, consumer demand for farm fresh goods has not diminished.

The United States Department of Agriculture (USDA) announced last month that the number of winter farmers markets listed in the National Farmers Market Directory increased 52 percent, from 1,225 in 2011 to 1,864 in 2012.

According to a recent Ohio Farmer article, winter markets now account for roughly 24 percent of the 7,865 farmers markets listed in the USDA national directory.

The growth in the number of markets is attributed to the steps more farmers are taking to meet increased consumer demand for locally produced goods. Farmers markets allow consumers to have access to locally grown, farm-fresh goods such as fresh or preserved fruit, root vegetables, meat, poultry and eggs. The markets also enable farmers the opportunity to develop a personal relationship with their customers.

The winter markets are also a significant boost to farmers’ and growers’ bottom lines, according to a USDA study, which found that markets operating more than seven months a year garner three times the amount of sales revenue per month than those that operate only during the prime summer months.

"Each winter farmers markets offer additional opportunities for farmers to generate income year round," Agriculture Deputy Secretary Kathleen Merrigan said. "These investments are a win-win.  Farmers have more stability and consumers have a reliable supply of local food, regardless of the season."

Last year, the USDA ranked Ohio fifth nationally in terms of the number of winter farmers markets active throughout the state. While Ohio has moved down in the list, our state still boasts an impressive number of winter farmers markets, including the: 

• Columbus Winter Farmers Market
• West Side Market, Cleveland
• Findlay Market, Cincinnati
• Toledo Farmers Market
• Athens Farmers Market

For a list of additional winter farmers markets throughout the state, visit http://ohioproud.org/searchmarkets.php 

Do you participate in any winter farmers markets or have you attended any this year? If so, which markets do you recommend?

Photo obtained from: boston.mommypoppins.com

For farmers, there’s an app for that

Some readers may recall the craze throughout the country surrounding FarmVille, the social media game developed by Zynga in 2009. FarmVille quicky became the hottest game played on Facebook, the popular social networking site. But just as kids and adults of all ages can pretend to farm, real farmers throughout Ohio and the nation are using today’s technology for more than just casual fun – it has become an integral part of their business.

Farmers have been utilizing smartphone technology at a quicker pace than the overall population. A Successful Farming study showed that 55 percent of farmers own a cell phone capable of running applications or “apps.” Contrast that with a Pew study in which 35 percent of the population has a smartphone.

In fact, another Successful Farming survey found that more than 70 percent of respondents access agriculture-related information and services from their cell phone.

The benefits of smartphone apps available to farmers vary from conveniently storing important crop data to projecting yields and providing the latest ag news.

For example, Optimizer 2.0 uses a farm’s location, variety of seed, soil type and other variables to project corn yield and indicate the most limiting factor on the farm.

The Growing Degree Days app helps farmers predict when their crops will mature. The app reviews current and historic data based on the location of the farm.

CropNAtion is a farmers’ social network to share information and crop photos as well as explore regional trends.

If you wish to explore the range of apps available, consider CropLife’s list of the 10 best apps for 2012 and 2013.

In addition, the December 2012 edition of Farm Futures includes an article about more than a dozen smartphone apps.

How has smartphone technology impacted your farm?

Photo from dailycaller.com

Preview: 2012 Farm Science Review

A yearly agriculture event, the Farm Science Review (FSR), marks its 50th anniversary this year in Ohio.

Taking place September 18, 19 and 20, the FSR attracts nearly 140,000 visitors from the U.S. and Canada who come to learn about the latest in agricultural research, products and services, and experience educational exhibits, presentations and demonstrations relating to natural-resource management and the crop and livestock industries. 

According to its website, this year’s three-day event will feature:

• Millions worth of machinery
• The Ohio Farmer Conservation awards — Thursday, September 20 at 11:30 a.m.
• Farm, home and health-safety information 
• Hands-on Global Positioning Systems (GPS) demonstrations 
• Conservation-practice programs 
• Harvesting, strip-tilling, global positioning, manure and tillage field demonstrations 
• Equipment demonstrations focused on improved nutrient placement

For a full schedule of events, click here.

Three individuals will also be inducted to the FSR Hall of Fame, including Professor Jim Beurlein with The Ohio State University, Mike Gahn, DuPont Pioneer representative and Dr. Bobby Moser, past vice president and dean of the College of Food, Agricultural and Environmental Sciences at The Ohio State University.

FSR is located at The Ohio State University’s Molly Caren Agricultural Center in London, Ohio, and is sponsored by the College of Food, Agricultural and Environmental Sciences, Ohio State University Extension and the Ohio Agricultural Research and Development Center.

Are you planning to attend this year’s Farm Science Review? If so, what are you most interested in learning about and/or seeing?

Photo obtained from: http://fsr.osu.edu/

Farm Bill Scenarios

Congressional legislation is usually hotly contested and last minute, but the looming expiration of the Farm Bill September 30 is especially thorny. 

“I’m not sure which day, I’m not sure which month, but there will be a new farm bill,” said House Agriculture Committee Chairman Frank Lucas, as reported in an Agri-Pulse story.

Why so complicated? A Chicago Tribune story notes election-year politics, a deeply divided Congress and limited days for congressional action — Congress is in session for only eight days when it resumes September 10. Agri-Pulse notes the several “very important priorities” also requiring congressional attention such as “military sequestration, tax code issues and a continuing resolution to address spending for the next six months.” An Argus Leader story notes “uncertainty from lawmakers about proposed nutrition program reforms within the bill and lack of interest from those in urban areas.” 

But, it’s not only farmers and producers whom are affected by the delay.

“It's not just important to the people who work the land, it's important to everybody who buys food in the grocery store," said Pam Johnson, an Iowa farmer quoted in a Chicago Tribune story. 

“All of us need food, and all of us recognize that when we have a drought like we had this year, it’s going to impact our food prices, it’s going to impact our families,” said Sioux Falls, Rep. Kristi Noem, as reported by Argus Leader.

Industry affiliates such as seed, feed, nutrient and equipment suppliers, ag lenders and others, are also greatly impacted. The Farm Bill determines policies that are crucial to farmers’ and producers’ future business decisions, such as outlays for crop insurance and disaster protection. Not having this forecast doesn’t allow them to have structured financial plans and doesn’t give industry affiliates the ability to estimate projected business traffic.

What can happen?

Farm Bill scenarios after September 30:
•    Pass a bill with regular order
•    Pass a short-term extension of current law
•    Do nothing and therefore revert to the 1949 version of the bill

“The drought has made the need for a renewal of that program extremely urgent,” states the Argus Leader story.   

"Farm Bill Now," a group of 40 farm and agriculture-related organizations, will rally on the grounds of the U.S. Capitol September 12 to lobby lawmakers.

“I’m basically telling both sides that, as the drought has demonstrated in the Midwest this year and in the Southwest the last two years, economic certainty is important to farmers and their bankers and ultimately consumers. Let’s do a farm bill. Let’s do the responsible thing,” said Lucas.

Irrigation Investment

Nearly 80 percent of Ohio was classified as experiencing a “moderate drought” this season. Many consumers believe that the answer to this year’s drought is an easy and simple one — Use irrigation systems — An answer that farmers wish was as easily applied as it is recommended.

Farmers have been categorized, among other categories, as “dry-land farmers” or “irrigated farmers.”

“A dry-land farmer plants and prays,” said a farmer in a recent NPR news story.

So why don’t Midwest farmers utilize irrigation systems like their western and southern counterparts? There are multiple reasons according to Larry Brown, an Ohio State University Extension agricultural engineer and professor of food, agricultural and biological engineering:

• Often it’s cost prohibitive: cost of investment/maintenance, mechanical issues, repairs, fuel    
• There are water restrictions: demands 200 or more gallons of flow per minute; water sources such as ponds, streams, wells etc. are often depleted during droughts   
• It requires a permit   
• Summer rain is usually common in the Midwest   The sub-soil type is effective at containing moisture  

Dan Kamburoff, owner of Columbus Irrigation of Ashland, Ohio, said that the odds of needing irrigation for field crops are only about one or two years of 10, per a recent Farm and Dairy story.

“The irrigated farmer is in a completely different business,” said the NPR story author. 

Even with the many deterrents to investing in irrigation systems, many news stories have noted that irrigation dealers experienced increased interest this year because of the drought.  

Columbus Irrigation had a 40 percent business increase this year.

It will be interesting to note a potential increase of Ohio farmers who invest in irrigation systems during the coming years as a result of this year’s anomaly.

"Do your homework. For short periods in a typical Ohio growing season the return on the investment may not be there," said Brown.

Photo obtained from: farmanddairy.com

Core Farming Values

CORE VALUES: THE HEART OF EVERY SUCCESSFUL BUSINESS
How to create the vision and strategic plan that can guide the future of your farm — In three simple steps

How are Fortune 500 companies and small-farming operations the same? The success of each is based on strategic business planning.

This week, I’m sharing an article about the purpose and significance of defining core values and using them as a guiding strategy for the farm, written by Farm Futures Executive Editor Mike Wilson and originally published for Farm Futures’ May/June 2012 issue.

I hope that you consider its advice or share it with a fellow farmer to ensure the longevity of your farm.

Visit the link below to view Wilson’s story.
http://magissues.farmprogress.com/FFU/FF05May12/FF01%20to17.htmlhttp://magissues.farmprogress.com/FFU/FF05May12/FF01%20to17.html

Photo obtained from: wedgewoodbaptist.com

Agriculture + Kids = Cool

Launched at the Ohio State Fair in 2011, the “Agriculture is Cool” education program is set to return to this year’s expo July 25 to August 5.

The purpose of the program is to generate excitement and interest among students about agriculture, which is Ohio’s largest industry and a key component of the state’s history and identity.

“The great thing about this program is that it helps young people understand you don’t have to live on a farm to have agriculture touch your life every day,” said David Daniels, director of the Ohio Department of Agriculture in a recent OurOhio.org article. “By exploring Ohio agriculture at the Ohio State Fair, families get the opportunity to see how farmers today are using state-of-the-art technology to grow food. It’s pretty incredible.”

The program, which was recently recognized by the International Association of Fairs and Expositions as the best special or specific agricultural education exhibit, event or program, offers students and visitors of all ages the opportunity to learn more about different facets of the state’s agriculture industry and how it impacts the daily lives of all Ohioans.

In addition to interactive exhibits, the program also offers exiting fourth-grade students the opportunity to win one of four $500 scholarships, provided by the Ohio State Fair Youth Reserve Program, by submitting a one-page essay or creative story about what they learned from the Ag is Cool program.

This year, the program is also offering fourth-grade teachers the chance to attend the fair for free and possibly win one of two $2,500 classroom grants from a random drawing.

Are you interested in learning more about the Agriculture is Cool program? Visit the program’s website for more information.

Photo obtained from: agri.ohio.gov

The Summer Food Staple

Shortcake, sundaes, jam.  What do they have in common? Each is tastefully complemented with strawberries.

Strawberry production and purchasing is in its prime this time of year, as are strawberry festivals. Some examples:

•      Troy Strawberry Festival — Troy, Ohio
•      Depot Town Strawberry Showcase — Ypsilanti, Michigan
•      Newark Strawberry Festival — Newark, Ohio
•      Strawberry Days — Glenwood Springs, CO Colorado
•      The Belleville National Strawberry Festival — Belleville, Michigan

“Farmers from Lake Erie to the banks of the Ohio River are harvesting strawberries now,” said Brad Bergefurd, an OSU Extension horticulture specialist in a recent OSU Extension story.
 
According to the USDA ERS, Ohio harvested 730 thousand acres of strawberries last year.

Like other crops, strawberries have trade association representation. The North American Strawberry Growers Association (NASGA) supports USDA and state/provincial research programs and develops educational seminars and publications, promotes development of equipment, varieties and cultural methods to improve efficiency for the strawberry industry to strengthen and improve strawberry production and marketing.

An example of such industry development is a new strawberry production method being tested at The Ohio State University Extension called plasticulture. A recent story details the practice — allowing farmers to grow strawberries with better commercial attributes — larger fruit size, more sugar content and better disease resistance — and that can also be harvested as early as the first week of May and as late as October.

Plasticulture strawberries have the potential to yield 20,000 to 25,000 pounds of strawberries per acre, compared to 10,000 to 15,000 pounds of strawberries per acre using the traditional matted-row method.

Retail strawberries are priced about $2.50 to $3.50 per pound, so the opportunity for increased profits is appealing for farmers who take the time to invest in this new growing method.

“Just about every Ohio farmer that grows them for retail always sells out, so there is a strong market for the locally grown fruit,” said Bergefurd.

This superfood is healthy, tasty and adaptable for many recipes (and eases the pain of sunburns!). How do you most enjoy strawberries?  

Photo obtained from: Ashlee Culverhouse

Robots on the Farm

Science fiction is quickly becoming fact in the agricultural world. Today, many farmers and agribusinesses are looking toward the future and at autonomous farming machinery or “robots” to help enhance efficiency, decrease workload and increase productivity.

While using technology at the farm is nothing new, some companies are beginning to push the envelope. For example, Jaybridge Robotics and Kinze Manufacturing recently partnered to create a robot drone tractor, which uses guidance-communication systems to allow a tractor to function without an operator.

Farmers are already using global positioning systems to guide tractors and combines, but that technology still requires an operator. By removing the operator from the equation, Jaybridge and Kinze hope their “robot” tractor will solve a persistent problem for many farmers — finding skilled, reliable labor.

“You put in such long hours at harvest and if you have one less person that’s needed, or you still have the same number of people helping but they can relieve somebody else a little bit during the day, it would make it much nicer,” said Jason Ochs, a Kansas farmer during a KVNO radio report.

With autonomous farm machinery, a farmer could theoretically plant and harvest 24-hours a day — a feature that would enable farmers to be particularly productive during periods of good weather.

Employing robots and other autonomous machinery could also free farmers to focus on managing their business or even having rare downtime with their families.

“Just this past Christmas we had a customer that had just started two of our robotic milkers with their herds,” said Mark Futcher, a product manager with milking machine manufacturer DeLaval in a Kansas City Star article. “That Christmas morning was the first time that gentleman had ever been witness to his children finding their Christmas stockings.”

What do you think about robots helping out around the farm? Would you use robot technology to reduce your workload?

Photo obtained from: gamersanon.com

Custom Farming

There’s never a lack of things to do on a farm — mowing, plowing, seeding, fertilizing — the list goes on and on. In fact, there are so many chores to be accomplished that many farmers hire outside contractors to do some of the work for them, a practice commonly referred to as “custom farm work.”

According to a recent Ohio County Journal article, a large number of Ohio farmers are hiring “custom farmers” to provide machinery operations or other farm work that they don’t have the proper equipment, time or expertise to accomplish themselves.

Custom-farming contractors often tailor services to different groups: farmers, hobby farmers and landowners, who are often the largest consumer group for custom work.

“A lot of people move out here on 10 acres and think, it’s going to take care of itself, it’s nature,” said Josh Riddle, a custom-farm operator in a recent Capital Press article. “It’s not nature, it was farm ground. It’s just how to help them be stewards of the land.”

Riddle is a fourth-generation farmer in Washington who began his own custom-farming operation nearly a decade ago. He provides a variety of services — everything from seeding fields to applying custom fertilizers, pesticides and herbicides.

According to the University Extension at the Iowa State University, enlisting the help of a custom operator like Riddle can be particularly beneficial to farmers with small acreages who can still be productive without investing in a full line of machinery and helpful to farmers who are employed beyond the farm or who are retired.

Rates for custom farm work are wide ranging because of a multitude of variables — the size and shape of fields, condition of the crop, the mix of labor and machinery used, etc.

To help Ohio farmers better calculate and plan for costs associated with custom farm work, The Ohio State University Department of Agricultural, Environmental and Development Economics recently published the Ohio Farm Custom Rates for 2012 report.

Based on a survey of more than 120 farmers, custom operators, farm managers and landowners throughout the state, the report provides rates for a variety of farm functions, including:
• Soil preparation
• Fertilizer application
• Chemical and mechanical control of weeds or insects
• Planting operations — till and no-till
• Grain harvesting, storing, drying and hauling
• Hay baling
• Machinery rental and labor

Do you or someone you know utilize custom-farming contractors? If yes, what work do you or they farm out?

Photo obtained from: standerfarms.com