Agmag pages by THEAGMAG

Vol. 1 Issue 2

Staff

Michelle Martin Owner/Editor michelle@theagmag.org (956) 330-8870

Ephesians 5:20 Giving thanks always for all things unto God and the Father in the name of our Lord Jesus Christ.

Al Benavides

Graphic Designer

Melanie Neuhaus Wilson Field Specialist

A Letter from the Editor Hello! By now many of you have either seen the Ag Mag or have met me. I am excited to introduce my second edition. The first edition of Ag Mag will always hold a special place in my heart, but I can promise you the second magazine, as well as future editions, will only get better. As I contemplated about what to write, it came to mind that Thanksgiving is right around the corner and I began reflecting on being thankful. Then the idea popped in my head! Throughout my experiences in life it was always ingrained in me to thank those who help you get to where you are.That’s what this letter is intended to do. I want to focus on my gratitude to my readers, and to those who have helped me bring Ag Mag into the world. When I first introduced my magazine, the support and acceptance I received were beyond words. I never fathomed that Ag Mag would be such a blessing. I always thank God for leading me down this path. Since the magazine debuted in September I have had the opportunity to meet some genuine people and learn so much. I owe a lot of the magazine’s success to the people who have supported me and believed in my vision. A BIG thank you to ALL my advertisers who believe in me and put their trust into my product. I also owe a lot of thanks to my husband Clayton Martin, who has stood by me since the thought of Ag Mag popped into my head. Without the support and love I received from all the people I have met, this magazine would not be possible. A big thank you to my designer Al Benavides who graciously sets time aside from his full-time job to use his creativity and skills to design Ag Mag. Thank you also to Melanine Neuhaus Wilson, who also sets time aside from her busy life to help spread the word about Ag Mag. Thank you to Carlos Guerra , Mike England , Bruce Kroeker, Brad Cowan, John Miller, Casey Clipson, Rod Santa Ana, Brian Jones, Campbell Patton and many more. Also a huge thanks to all my readers! I am forever grateful to every single one of you for taking the time to read the magazine and for all the wonderful comments I have received. I am excited to continue this journey with all of you on board. I am determined to bring you the latest news and issues that surround agriculture in the Rio Grande Valley. If you ever want to read about a certain issue or topic , feel free to contact me at michelle@theagmag.org and I will do my best to get you the most up-to-date information. Again,THANK YOU to all my supporters and readers. May God bless every single one of you.

Owner/Creator of AG MAG

What’s Inside... What does the future hold for Valley Citrus? ............. Pg 6 The Cotton Market ......... Pg 10 The Cattle Fever Tick .... Pg 12 Life on the Edge ................ Pg 14 Feature Story STARR FEEDYARDS Success in a Challenging Industry.................................. Pg 16 Mexican Fruit Fly............. Pg 19 Fertilizers are VITAL! ... Pg 20 Q&A with Brian Jones ... Pg 22 Congressmen learn of research to save the nation’s citrus industry................... Pg 24 FFA Events Calendar..... Pg 30 4-H Events Calendar...... Pg 31 2014 Farm Bill .................... Pg 34 Volume 1, Issue 2. November 2014. No part of this publication can be reproduced without the written consent of the publisher. Ag Mag reserves the right to edit, rewrite or refuse editorial materials and assumes no responsibility for accuracy, errors, omissions or consequence arising from it. All correspondence to the publication become the property of Ag Mag. Ag Mag is published by M&C Publications. Copyright 2014. To advertise in Ag Mag, call (956) 330-8870 or email michelle@theagmag.org

What does the fu hold for Valley C Written by: Noel N.Troxclair Jr. and Eleisha Ensign Photo Credit: Olufemi J. Alabi

The Texas citrus industry, which contributes approximately $200 million to the RGV’s economy, is raging a war against the spread of citrus greening disease and is at a critical juncture with respect to its long-term survival. Citrus greening, also known as Huanlongbing (HLB), a bacterial disease which affects all citrus is spreading across the Rio Grande Valley. Once a tree has citrus greening, there is no cure; over time, the tree will deteriorate, the fruit will become inedible and ultimately the disease will destroy the tree. It is incredibly important to remove trees that have this disease. 6 Ag Mag

Every tree that has citrus greening has the potential to spread the disease to healthy trees, increasing the disease’s spread across the RGV. This disease is easily spread by moving infected plants (including infected trees from nurseries) and by a small insect called the Asian citrus Psyllid (ACP). Propagation or production of new trees using bud or budwood materials from infected trees is also a prime way to spread citrus greening. The symptoms of this disease include asymmetrical blotchy mottling of leaves, yellow/ raised/thickened/corky veins, and lopsided,

bitter, hard fruit with small, dark aborted seeds and premature leaf and fruit drop. Let’s take a closer look at the many contributing factors that complicate the situation. At the forefront of the problem is dooryard citrus. It is estimated that there are a half-million dooryard trees growing in the RGV. Homeowner tree care and removal of infected trees is vital in decreasing the spread of this disease. The industry has invested all of its promotional funding to educate residents about this situation and inform them how they can help slow the spread of this disease.

uture Citrus? Another complicating factor is the vast number of trees that are susceptible. This disease can infect all species of plants in the citrus family, which includes over 41 different types of plants, such as orange, grapefruit, lemon, lime, kumquat, tangerine, and relatives like orange jasmine. The latency period for the disease is another critical factor in timely removal of infected trees. After a tree is first infected, there are no visual symptoms. A young tree may not show symptoms for several months and a mature, healthy tree might not show symptoms for up to four years.

However, during that time, an infected tree is more attractive than a healthy tree to adult psyllids, especially for egg-laying. Psyllids that feed on infected trees will acquire the disease and then transmit the disease to uninfected trees. Once a psyllid has become infected with the bacteria, it prefers and is attracted to healthy trees. New flush is required for psyllid reproduction and is where the nymphs develop. If the tree on which they developed was infected with citrus greening, those psyllids will carry the bacteria with them to another tree which is likely not already infected. Growers should remove infected trees once the tree has been identified as having the disease because the infected tree serves as a continuing source of inoculum for the spread of the disease as long as it remains. The only way to be certain that the disease does not spread from a tree that is known to be infected to remove the in-

fected tree or assure that no psyllid leaves an infected tree after having fed on it. Arguably the most critical factor is how seriously commercial citrus producers take this threat. It is imperative that commercial growers diligently control psyllids and follow through with removing infected trees. Although dooryard citrus is a serious factor, growers still hold the key to managing the disease within their own groves. If growers reduce inoculum by removing infected trees and prevent the spread of the disease by controlling psyllids, they will minimize or limit the spread of citrus greening. An area-wide management program has been established to assist in this endeavor by coordinating the timing of spraying in ten pest management areas across the Lower Rio Grande Valley. If you would like more information about this, visit:

www.texascitrusgreening.org There are some very promising, albeit long-term, developments in the battle against citrus greening, which gives us hope that the industry can survive in the face of this devastating disease. In the meantime, if producers stay on top of their game with psyllid control, inoculum reduction and tree removal, they should remain profitable and the citrus industry in the Valley should continue to thrive.

If you are a citrus producer and would like more information, please contact

Noel Troxclair with Texas Citrus Mutual at (956) 968-8067 or noel@valleyag.org.

Valley Farmers Weighing Planting Alternatives

Written by: John Miller y virtue of location, valley farmers are typically a step ahead when it comes to planning for the coming crop year. By being some of the first farmers in the nation to plant grain and cotton crops, there is little time after the summer harvest to hesitate when it comes to deciding the next seasonâ&#x20AC;&#x2122;s mix of crops. It is not uncommon to see sugar planted in October, corn in January, sorghum in February and cotton right away in March. And that does not include the variety of minor field crops, vegetables or fruit crops that can be grown here. The threat of the once-inawhile winter-long wet spell means that field preparation must commence quickly after a harvest in one season to avoid any possible winter delays that can prove costly at planting time for the next season. In addition, how a field is cultivated and later treated for weed and pest control in the fall can have a considerable bearing on what crops can be planted in early spring, and how well those crops will perform during the growing season. These factors, then, require a lot of decision-making months ahead of actually putting seed in the ground.

AgMag Mag 10 Ag

For most farmers the large amount of capital required to manage commercial operations nowadays requires the use of temporary financing to cover expenses that are incurred from well before the crop is planted until well after harvest. Farming is in a select group of occupations where expenses can be incurred over an eight-to-ten month period before the first sign of revenue from selling the crop arrives. Trying to forecast those potential 2015 financing needs started immediately after the 2014 harvest since expenses can vary greatly with crop choice, the cost of needed equipment and inputs, unforeseen weather situations (think hurricane or drought), unknown pest pressure, and volatile commodity prices for starters. And this year gets the added twist of figuring out how best to incorporate the provisions of new federal farm legislation that will require making a number of decisions now that could have a wide variety of outcomes depending on unforeseen weather and prices for years to come. Finding better ways to coordinate decision-making to provide opportunities for profit and growth that every busi-

ness strives for while at the same time minimizes negative financial impacts of unforeseen risks farmers face has been an entire industry of its own. Being fresh on our minds, the transition from the 2014 to 2015 crop year provides a good example of the year-to-year planning process in many ways. Up until the 2014 season, the often dry growing conditions, increased concern about irrigation water supplies, and commodity price outlooks helped to increase sorghum acres relative to cotton for a number of years. Over that same time, there were also increased acres of minor crops such as sesame, sunflowers and soybeans to name a few. Coming away from 2013 with improved cotton prices and wetter planting conditions, however, cotton acres increased considerably for the 2014 crop that has recently been ginned for shipment. Despite the favorable price forecasts early in the season, cotton prices have since fallen to levels that bring profitability, and future planting intentions, into question. Cotton futures prices started this past season at near 80 cents per pound, a quite acceptable level for the yield potential expected after a wet winter. At this time, however, a changing U.S. and world marketplace had led cotton futures prices down to approximately 65 cents per pound. This is a level that would put profitability into question, especially when you consider the wide range of potential yields that can result from the many weather and pestilence combinations (remember the sugar can aphid article) that might occur. Cotton is not the only crop to see a fall in prices recently. With the U.S. now

harvesting a potentially record corn and soybean crop, and world supplies plentiful, grain markets in general have fallen sharply since last summer. The past two seasons have already seen local sorghum prices for the farmer drop from approximately $9 to $10 per hundredweight during 2013 to $8 to $9 per hundredweight during 2014. Fortunately, valley farmers made the most of their moisture this past season and were able to experience increased yields compared to 2013. For sorghum, the 3,500 to 4,500 pound per acres yields commonly seen on non-irrigated acres was 1,000 to 2,000 pounds per acre more than the previous year. From 2013 to 2014, cotton yields increased from one bale or less per acre on non-irrigated land to two bales per acre. While the improved yields in 2014 helped offset the lower commodity prices to some degree, trying to depend on greater productivity alone can be tricky when guessing at future input prices or climate which can create such a wide range of yield outcomes. The next couple of months will have farmers across the valley working out their individual plans for the coming season. As with farming areas all across the U.S., the valley will likely see a few changes from last year. With current 2015 corn futures prices at approximately $4.00, and 2015 soybean futures at 9.80, I would guess that without price changes farmers in the Midwest would choose to grow more soybeans. Current price relationships suggests that the Delta would likely grow more soybeans and rice relative to corn and cotton. Of course those areas have

more dependable rainfall and have considerably more time than farmers in our area to make those decisions. With valley farmers having to make planting decisions much farther in advance of summer harvest prices than the Midwesterner, a lot of important assumptions will have to be made soon. Current futures prices for corn indicate that sorghum prices could slip a little more this coming year, and cotton prices will likely struggle to show profitability without top-end yields. While many of the conditions discussed above could change over the next few months, the evidence points to an increase in sorghum acres relative to cotton. Cotton and sorghum will always be a staple crop for our area. But like any business, tight profit forecasts has farmers looking at strategies with the most liquidity under the widest range of cost, price and yield possibilities. Fortunately the valley has many strengths that keep this area prepared for any final cropping result. Land that only needs modest rainfall to achieve high yields, modern cotton and grain processing and handling facilities, access to export pathways to Mexico and beyond, irrigation infrastructure to support a wide range of crops, and generations of farming experience. This fall as you look across the worked up fields that blanket the valley, keep in mind the multitude of decisions that must be made before the next crop is planted, and whether or not you would want to be the one making the decision of what to grow in the face of so many unknowns.

SOUTHWEST AGRIBUSINESS CONSULTING, INC. Risk Management Consulting â&#x20AC;˘ Commodity Brokerage

John Miller, PH.D. Local: 979-272-0539 Fax: 979-272-0549 Toll Free: 877-697-8944 Cell: 979-219-1864

2122 FM 50 Caldwell, TX 77836 jmiller@agconsult.net www.agconsult.net

South Texas and the Cattle Fever Tick Maintaining Vigilance Written by: Yvonne (Bonnie) Ramirez Director of Communications, Texas Animal Health Commission Most South Texas ranchers, cattlemen in particular, are no stranger to the pesky pest known as the Texas Cattle Fever Tick. South Texas ranchers have a long history of battling the tick. And it hasn’t come at an easy price… Maintaining vigilance is key in protecting the land, premises, and animals from the cattle fever tick. In 1893, fever tick outbreaks prompted the Texas Legislature to create the Livestock Sanitary Commission, the original name of the Texas Animal Health Commission (TAHC). The agency’s mission was to eradicate the Texas cattle fever tick that plagued the state’s cattle industry. And eradicate the pest, the TAHC did in partnership with the U.S. Department of Agriculture. Today, the TAHC has a broader mission to protect the health of all livestock, exotic livestock and poultry for a variety of diseases in addition to the fever tick threat. So what exactly is the Cattle Fever Tick… and what’s the big deal? Cattle Fever ticks, known scientifically as Rhipicephalus (formerly Boophilus) annulatus and R. microplus, are a huge threat to the U.S. cattle industry health and trade. These ticks are capable of carrying the protozoa, or microscopic parasites, Babesia bovis or B. bigemina, commonly known as cattle fever. The Babesia organism attacks and destroys red blood cells, causing acute anemia, high fever, and enlargement of the spleen and liver, ultimately resulting in death for up

to 90 percent of susceptible naive cattle. (Naïve, meaning= never been exposed to Babesia.) Potential hosts of cattle fever ticks include, but are not limited to: cattle, horses, white-tailed deer, and exotic hoofstock such as nilgai and red deer. Quite simply…the big deal with fever

ticks is the significant economic impact it could have on the livestock industry (local ranchers) if re-established in Texas. Texas cattle producers could lose trade partners and Texas cattle could become ill if the tick is re-introduced into Texas.

What is the Permanent Cattle Fever Tick Zone? Have you wondered what exactly a fever tick zone is? And what specifically the permanent cattle fever tick zone means? The permanent cattle fever tick quarantine zone is a narrow zone from 200 yards to 10 miles wide along the Rio Grande River.The strip of land is 630 miles long, and runs through eight South Texas counties, alongside the Rio Grande River from Devils River in the north to the Gulf of Mexico. The zone was created as a buffer zone to Mexico, where fever ticks are very common. Inspectors regularly check livestock premises in the quarantine zone for signs of stray cattle entering Texas from Mexico. Animals shipped out of the zone must be inspected, found free of ticks, treated (dipped or sprayed) and receive a movement document before leaving the area. Permanent Quarantine Zone Counties:

Cameron, Hidalgo, Kinney, Maverick, Starr, Webb, Val Verde and Zapata

What to do if you find ticks in your livestock/wildlife herd If you observe a tick (see example images) in your herd that you believe might be a cattle fever tick, you should contact the TAHC, your local USDA tick office, or private veterinarian immediately. Recently, the TAHC created a temporary preventative quarantine area in Cameron County after finding newly infested premises out-

side the permanent cattle fever tick zone. To find out more about the new TPQA visit http://www.tahc.texas.gov/

What happens when infestation is detected? If cattle on a Texas ranch are found to be continued on page 33

Life on the Edge Written by: Kathryn Brady

For more information of deer habitat management contact your local Texas Parks and Wildlife Department,Texas AgriLife Extension office , or the Natural Resources Conservation Service. You can also visit the websites for each of these agencies.

Good luck with the upcoming hunting season.

14 Ag Mag

As the long hot dog days of summer give way to the brisk evenings and shorter days of fall; we are reminded that autumn is once again upon us. And that means that deer season is less than a month away and even though most hunters have already set up their feeders, blinds, found their hunting leases or camps; it is never too early or late to start thinking about enhancing your deer habitat for the off season and for next hunting season. On that note, I thought I would take this time to discuss aspects to boost your deer habitat. As everyone knows; deer prefer food, water, cover and space for their ideal habitat. But what does this mean exactly? Deer are considered browsers; meaning that they mostly consume woody vegetation and forbs or weeds; deer use that very same woody vegetation that they eat for cover. The woody vegetation cover is used to escape from predators and also as a barrier from extreme temperatures. This is where the concept of the “edge effect” comes in to play. Wildlife managers define an edge as an area where two or more vegetation areas come together, such as where an open grassland meets a more dense wooded area. You will often find the deer right on the edge, where these two landscapes come together. In this space they have easy access to forbs as well as brush species to eat, but can also quickly and easily escape into the protection of the bushes. It has been observed that deer rarely travel more than 200 – 250 yards from a covered area and there should be some type of water source somewhere near as well. It is possible to create the “edge effect” for your deer population on your very own place. One way is by creating brush strips or senderos. This habitat creation does not have to be in straight strips parallel to eachother, they can be creative, laid out in blocks or even in random shapes to create a diversity of habitat for the deer, other wildlife species and cattle. A few examples of the preferred brush species of south Texas to be considered when creating your habiat are Texas kidneywood, Granjeno, Coma and Guayacan. Another concept for improving your deer habitat is to create a food plot. This can be as simple as sprinkling out some seeds of grain such as sorghum, wheat or oats or as complicated as tilling up a few acres and broadcasting or planting a deer mix purchased at a seed vendor. You can decide between warm season or cool season food plots. On the other side of wildlife habitat management; it is important to know how many deer are on the place as well as the ages and the sex of the deer. This can be accomplished by conducting a deer census around October. The main idea is to observe the amount of animals on a calculated number of acres. Once the census has been conducted the landowner can determine the sex age, and how many of each should be harvested in the upcoming season to sustain the population on the given acreage. You can also conduct a browse survey around January to have an idea of what type and how much of the vegetation is being consumed by the deer.

It was my freshman year at UTPA and I was living in my first apartment across the street from Mcallen’s public library on Nolana. When a farmer’s market opened, it quickly became my favorite place to shop. The local growers were always friendly and open about their farming practices. Some, like Juan Raygoza of Terra Preta Farms, even invited me to see his farm.Visiting the Terra Preta Farm enhanced my appreciation for farmers who use wholesome and sustainable methods.

was interested in farming about volunteer opportunities on a local organic farm. Each trip to the farm there was always a diverse group of volunteers ready to get down and dirty. Juan Raygoza worked side by side with us to share his methods of sustainable agriculture, investing in the soil’s quality to produce great crops. The environment on the farm is therapeutic. The wholesome labor, fresh air, birds chirping and bees buzzing evokes a peacefulness hard to find in the city.

Growing Together

the volunteer groups has been greatly appreciated at our farm, at times, help came right when we were behind in some tasks and having several hands working at the same time allowed us to get caught up with the tasks, and benefit the crops. Working as a group makes things easier and more fun.”, said Juan Raygoza. Working together on gardens and farms as a community can produce more than delicious vegetables, it helps people grow together. Experience working on the farm and my own garden has opened new doors for me. In part, it directed me towards an internship with the Agroecology department of UTPA, under the SOAR program I now have the opportunity to provide research to farmers on organic solutions to problems unique to our region.

Written by: Lindsey Richards

Many of my peers share a deep desire to educate ourselves and experience growing food in a safe and sustainable way. So, I reached out to campus organizations such as the Environmental Awareness Club, posted flyers around campus and on social media, and told just about anyone I met who

We would always lose track of time, absorbed in our tasks. The tasks may seem simple, pulling weeds, spreading compost, pruning, harvesting, cleaning up in the off season, but it is takes time and attention. “The help of

From left to right: Shakira Raygoza, Andres Raygoza, Bianca Scalise, Lindsey Richards, and Mollie Wallace take a photo by zinnias after harvesting gherkins.

H Feature Story

Starr Feedyards

SUCCESS IN A CHALLENGING INDUSTRY Written by: Michelle Martin and Campbell Patton

In 1937, The Scoggins family moved from Louisiana to Hardin Ranch north of Harlingen, where they began farming operations. Jack Scoggins’ father, George E. Scoggins, has always owned cattle in Louisiana and his interest in livestock had been imparted to his sons. The Scoggins brothers, Jack and Kenneth, expanded their farming ventures throughout Willacy and Cameron Counties and into ownership of a grain elevator strategically located for commodity importing and exporting on the Arroyo Colorado navigation channel near the Port of Harlingen. With the abundance of grain and Jack’s interest in cattle, the natural move was to build a cattle feedlot nearby in Cameron County. In 1956, Scoggins Brothers Cattle Yard, the forerunner to Starr Feedyards, began. The first feedlot had a 2,000-head capacity.

ficiency, and improved health conditions. It was also surrounded by vast ranches established in buffel grass, ideal for preconditioning cattle or for taking advantage of beneficial grazing economics. In 1974, along with close friends and long-time partner, Lou Waters, and the Scoggins Brothers founded Starr Feedyards, Inc., and constructed a 24,000-head feedlot with a state-ofthe-art feedmill. Rincon was remote in terms of people, but was ideal for cattle feeding.

After almost 20 years of enduring adverse coastal conditions and constant high humidity, the Scoggins began a search for an optimum location to improve cattle-feeding efficiency. At the time, Lloyd Bentsen Sr. was a major landowner and rancher throughout the Rio Grande Valley and he provided them valuable advice. After considering its many attributes, they chose Rincon, Texas, in western Starr County as the new location.

An interview with Jack and son Jackie is incredibly educational as it reveals many vast changes that the cattle feeding industry has undergone. The Scoggins have seen many changes in the cattle-feeding industry during their careers. When the Scoggins started, there were many meat packers in the region, however due to legislative and financial demands, the meat-packing industry has consolidated into a “survival of the fittest mode.” In order to prevent South Texas from losing its only major meat packer, Starr Feedyards along with the King Ranch and other partners acquired the last remaining large meat packer in South Texas.

Rincon was on the fringe of the reputable McCook farming area, where grain was plentiful and the more arid climate translated to better cattle feeding weight conversion ef-

Technology has also played an important role in the feedlots’ operation as feedmills, hedging risk, international affairs, health industry standards and many other of changes

have had huge impacts requiring constant adaptation. Jack credits Jackie with much of the adaptation to technological advances and it is obvious the two combine their strengths to maximize the efficiency of the many facets of the business. The experiences of the Scoggins spanning decades in the business isn’t limited just to major changes but reveals many years of dealing with livestock. Jack can even explain the difference between how American and Mexican cattle behave inside pens. Newcomer, Dillon Scoggins, is now the beneficiary of both farmer and grandfather’s mentoring. For many years, Jack and Jackie carpooled from McAllen, rising at 4:45 a.m. and commuting to work at Rincon, where they put in long days. The early morning trips were a great way for them to discuss the day’s schedule and demands. Jack made a comment once made to him by a friend who was comparing the Scoggin’s work schedules to his own. The friend bragged to Jack that “he only had to work 40 hours a week.” “I’ve never felt so sorry for anyone in my life to think that, that poor guy hates his work so much that he only wants to work 40 hours a week, “ Jack Sr. said. The success of Starr Feedyards, which has thrived while many of the competitors have come and gone, is also attributed by the owners to its very capable and dedicated staff. The average employee at Starr Feedyards has been with the company for more than 20-40 years, such as Joe Martinez,

Raul Flores, Humberina Flores, Richard Smith, Sixto Flores, Franz Aufegger, and Ricardo Vela. Dolly Flores, who has been with the company for 38 years, said, “The Scoggins have truly created a family atmosphere.” Jack who liberally praises their employees, says, “The reason for our success, is traced largely to experienced employees who have acquired expertise in their fields.” Years ago to fill a feedlot with 20,000 head used to cost around $5 million, but now the same cattle would cost more than $20 million dollars (before feeding, health, and other cost,). There is little room for mistakes in producing optimal performance. Because of the high investment and risk involved, every business decision is of critical importance for cattle feeders. Starr Feedyards is a Rio Grande Valley success story. Its history is a journey through four decades of “adapting” in an incredibly changing businesses. It is also a story of a family whose passion and integrity is a measure of its success. Jack and Tina still greatly emphasize their family and their Christian faith above all else. As many of you know Jack’s son Jackie has been diagnosed with cancer and is receiving treatment at MD Anderson. I ask that you please take the time to pray for him and the family through this difficult time. Ag Mag 17

www.boggusford.com

18 Ag Mag

The Mexican Fruit Fly A Pest and Threat to Texas Citrus Growers Written by: Hugh Conway and Tim Roland The Mexican fruit fly, Anastrepha ludens (Loew) (Fig 1) is a serious insect pest of citrus (oranges, grapefruit, tangerines, and others) as well as many other fruit species in south Texas. The Mexican fruit fly is native to Mexico and Central America. First reports of its occurrence in the United States date back to 1927 when it was found infesting grapefruit in the Lower Rio Grande Valley of Texas. Fruit fly maggots (Fig. 2), also called larvae, feed inside the fruit making the crop unmarketable and often result in costly federal quarantines that limit interstate movement and exportation of host fruits abroad. Over the years, the United States Department of Agriculture (USDA) has worked cooperatively with its counterparts in Mexico to develop new and better ways to detect, delimit and control this serious pest. Mexican Fruit fly suppression efforts in Texas began in earnest during the 1980’s using Sterile Insect Technique (SIT) by releasing high numbers of sterile males to mate with fertile females thus preventing reproduction. In the spring of 2006, the USDA and Texas Department of Agriculture initiated an eradication program in south Texas for the Mexican fruit fly through an intensive SIT release program. Flies are produced at a special facility located on Moore Air Base near Mission, Texas, then sterilized and released by aircraft (Fig. 3) over citrus growing areas in south Texas. This program was so effective that the Mexican fruit fly was declared completely eradicated from the United States in 2012. To accomplish this, more than 100 million sterile flies were produced and released each week – a three-fold increase over suppression levels used in 2006. The number of sterile Mexican fruit flies released in Hidalgo County per year for the eradication effort was 2.7 billion in 2007, 5.6 billion in 2008, 5.4 billion in 2009, 4.52 billion in 2010, and 3.5 billion in 2011. An additional release facility was constructed in Harlingen, Texas in 2007 to assist in releasing flies in Cameron and Willacy Counties. From the Harlingen Release Facility, 0.5 billion flies were released in 2007 and from 2.1 to 2.4 billion flies were released per year from 2008 to 2011. Aerial release of sterile Mexican fruit fly males is conducted using aircraft fitted with a specially designed release machine that chills and immobilizes the insects. The chilled insects drop from the airplane through chutes located on the underside. The flies free fall through the sky and fly to nearby trees for shelter and shade. A double box release machine carries approximately 6.1 million Mexican fruit flies per flight compared to a single-box machine that holds 2.45 million insects. Sterile flies are marked with a non-toxic orange fluorescent dye in order to distinguish them from fertile “wild” flies. The dye glows under ultraviolet light (Fig 4). Pay close attention

to adult flies that you see in your home gardens or on your backyard citrus trees as you may be able to see an orange dot in the forehead indicating it is sterile. Citrus is a major commodity in the United States with 11.2 million tons produced in the 2012-2013 harvest season worth $3.15 billion. The major citrus producing states by production size are Florida, California, Texas, and Arizona. Based on the 2012 Census of Agriculture, there were 13,055 citrus farms in the United States with 811,570 bearing acres. In south Texas, there were 27,000 acres of citrus producing 7% of the nation’s

Mexican fruit flies on grapefruit

Maggots or larvae of the Mexican fruit fly as they appear inside an infested fruit

Aerial release machine is mounted inside an airplane and used to disperse sterile flies over south Texas

The glow of the flourescent dye as it appears in the head of a Mexican fruit fly under ultraviolet light

grapefruit production. Texas is especially known for the deep red colored sweet grapefruit varieties. South Texas currently maintains a Preventive Release Program (PRP) to protect Texas agriculture from reintroduction of fertile Mexican fruit flies. Sterilized Mexican fruit flies are being released in both south Texas and along the northern border of Mexico at a rate of approximately 200 million insects per week. The Mexican fruit fly PRP program provides a safe and effective way to control the Mexican fruit fly without the use of pesticides and reduces the risk of fruit infestation in Texas fruit orchards and backyard gardens in the Lower Rio Grande Valley of south Texas.

Vital Manager Arjun Peddabhoini

Technical Manager for Crop Nutrition Specialties Jose Plascencia

Vital stemmed from a company in Mexico named El Surco (www.elsurco.com). El Surco has been in business since 1986 is located in South Tamaulipas and has three locations - two blending facilities for dry fertilizers and one blending facility for water-soluble fertilizers (WSF). In 2010 El Surco decided to move their business to the United States, thus the birth of Vital in 2011. Among the many high-quality products Vital distributes is a new one called Soludrip®. Soludrip® is a complete crop nutrition program through water-soluble fertilizer formulas specifically developed for each phenological stage in any crop under fertigation programs. In fact, Soludrip® is not only a brand, it should be classified 20 Ag Mag

Vital CEO Gerardo Gutierrez

more as an entire concept to help customers handle and keep good nutrition in their crops. Each element in Soludrip® was carefully designed to create a nutritive solution through the water the plants receive. This is very important for a qualitative nutrition, which represents a new way to keep order in the health of the crop. It also aids in increasing the yield regarding the production system that the growers have chosen based on crop type, soil type, measurements of the system, and technical data for each crop and each population density. The Soludrip® concept and “Just In Time®” were created to play friendly with all hard to handle – and unknown - elements. Electric conductivity, pH and antagonism between some elements are the most common issues in

fertigation. With the balanced formulation and with the Just in Time® software, we are ensuring that the nutritive solution will be the same from the fertigation onset until the final drop. This means a lot for the crop because every cubic millimeter of water will be from the same quality formula. Roots recognize this nutritive solution like a complete feeding and harmony between elements inside of each formulation balance and ensures the optimal uptake of all the nutrients that the plant needs and requires; all of them in the same solution. This nutrient uptake is quickly shown in the plants’ improved color and growth. Gerardo Gutierrez,Vital’s CEO, says his number one goal is to provide farmers with the most precise nutrition program available for any crop, competitive in terms of investment per acre, and supported with user-friendly technology. “At the end, what we are pursuing is for our farmers to be highly profitable; to support them with the nutrition to allow their crops to grow and reach their full potential,” Gutierrez said. “In the near future, we will create and develop more state-of-the-art specialized fertilizers as new options for growers, to improve yields and quality.

“As we always say:

nutrient solution. – Triggering the displacement of the nutrient solution in all rooted areas based in the principles of diffusion, mass flow, physical and chemical compatibilities of the nutrients. – Facilitating fertilization uses and practices. “We are not following any rocket science, we just follow basic science by applying all important nutrients N, P, K, S, Mg, Ca, Zn, Fe, Mn and B in a balanced formulation with every application,” Arjun said. “We are making sure plants are not under stress, able to eat well and grow healthy. We believe ‘If plants are happy, farmers are happy and when farmers are happy we are happy.’” Soludrip®, along with Just in Time® Plant Nutrient Calculator, supports 4R Stewardship principles: Right Source of fertilizer at the Right Rate at the Right Time and at the Right Place. Vitals’ “Just in Time® crop nutrition” will be releasing a new App in November designed by Jose Plascencia, the Technical Manager for Crop Nutrition Specialties. He has designed the App to be a user-friendly software tool that optimizes fertilizer application and enables growers to calculate complete and balanced plant nutrition programs. The App will be available for the IPhone/Android App and will allow growers to select the crop they are planting, the row space, and the irrigation system. Most importantly, this app is designed especially for THE FARMER!

Vital Manager Arjun Peddabhoini spends much of his time in the field, building relationships and making sure farmers are happy. “We decide the right type of fertilizer to be applied based on the crop type, phenological stage, application rate and time of application. More importantly, we take farmers’ experience into consideration, which will help us to decide how to fit the Soludrip® program into his crop growing system. We started off with seven acres of onions in our first season. Growers saw the difference and increased the area used to 2,400 acres. This is our third year and we are expecting to reach up to 5,000 acres under the Soludrip® crop nutrition program.” Some of the Soludrip®’s major objectives are: – Creating water irrigation layers with a homogeneous

Vital Fertilizers LLC 1207 Business Park Drive Suite A-B Mission, TX. 78572 USA Phone: +1 (956) 581-7961

‘s

Q&A with

Brian Jones Interview by: Melanie Neuhaus-Wilson and Michelle Martin

Q. Tell me about your farm. A. I farm in the Edcouch area, all irrigated land. I grow cotton, corn, and grain Q. When did you start farming? A. I started in 1986 on my own, this being my 29th crop. I am a fourth generation Texas farmer, and my wife and I are partners in the farm.

Q. There are new hi-tech GPS devices in tractors. Do you rely solely on the technology or do you trust your judgment better?

A. Oh, I definitely use the technology but at the same time I still trust my judgment. Using technology more and more, I find a few of the drawbacks are being able to educate your employees. Some of them have a limited skill set of being able to master the setting up and learning all the ins and outs. When I sit behind the wheel of a tractor it is really great to let the tractor drive itself because it allows more time for me to turn around and pay attention to all the equipment. But as far as totally utilizing the technology it is harder for some than others. Q. You are constantly mentioned on the Farm Bureau Facebook/media. How has technology helped you farm? A. Of course the iPhone has done a great thing, the technology you have in your hand, as far as being able to

follow markets and weather all at the tap of a button is convenient. You have GPS technology in tractors now. Social media has come along and I think it is important for farmers to get their story out. There is a lot of misinformation that goes out on a daily basis over the Internet. For us to be able to reach out to the community is beneficial. Unfortunately, people have been disconnected from the farm. Three or four generations ago everyone had an uncle, grandfather, someone who had a farm and they would spend weekends or summers there. There is always that connection to the farm. Social media and the Internet is a good way for farmers to reach out and tell their story about what is going on.

Q. Are you able to keep farming records on your cell phone or tablet? Are you using the new technology to keep up with farming practices for your farm, for example: planting history, spraying records and tillage?

A. Yes & No,

some computer programs are only compatible with Mac and others only with Windows - “not farmer friendly” - so it just depends. I haven’t started using any on my phone yet, but I’m sure I will get to that point one day.

22 Ag Mag

Q. Do you encourage your employees to use social media? A. (Laughs) No, I don’t think they have it - or they haven’t “friended me” at least. They may not want their boss as a friend on Facebook.

Q. What are some cons of using technology? A. One of the things that you come in contact with are what I call

“keyboard warriors.” They type what they are thinking, for example the anti- GMO activist, and PETA. If they get involved it can be a big deal.

Q. As technology has grown what has been your biggest challenge? What has been your biggest success? A. My biggest challenge has been to keep up with it. Usually when

there is a bigger and better piece of equipment that comes out, I wonder if it will pay for itself in the long run. I don’t want to change something that has worked for me and been reliable, this being my success, for something that might not always be greater. So, it is difficult to make those decisions sometimes.

Q. How do you see technology bringing value back to your farm? A. I think technology has helped me keep costs down, it has improved

quality of work and I have noticed time improvement as well. These are major factors when you are a farmer.

Congressme save the na

Written by: Rod Santa Ana

T WESLACO –

wo U.S. Congressmen learned firsthand recently the efforts Texas A&M AgriLife scientists are making in South Texas to keep invasive pests and diseases from threatening the country’s food supply, including one pair that threatens the future of the citrus industry.

Rod Santa Ana

U.S. Rep. Filemon Vela Jr., D-Texas, and U.S. Rep. Collin Peterson, D-Minnesota, toured facilities and met with scientists recently at the Texas A&M AgriLife Research and Extension Center at Weslaco. Both are members of the House Agriculture Committee; Peterson is the ranking member. Dr. Bill McCutchen, executive director of Texas A&M AgriLife Research, told the congressmen that South Texas is an entry point for many invasive pests and diseases that do not recognize international or state boundaries. “The impact that insect-vectored diseases are having on agriculture, crops and livestock, as well as human health, is immense,” he said. “The Lower Rio Grande Valley is a portal for these insects and diseases and is not only having an impact on Texas, but the major parts of North America.” Dr. Erik Mirkov, a virologist and molecular biologist at the center, told Vela and Peterson that citrus production in the U.S. is threatened to the point of possibly not having orange juice in the future. “A scientific journal, the Scientific American, asked on the front cover of a recent issue if we were seeing the end of orange juice in this country,” he said. “It’s a real possibility. In 2005, Florida confirmed their first case of citrus greening disease. By 2008, the disease had soared throughout the state to every single commercial citrus orchard.”

24 Ag Mag

en learn of research to ation’s citrus industry Citrus greening is a bacterial disease, carried from tree to tree by the Asian citrus psyllid, Mirkov said. The disease clogs the trees’ arteries, resulting in small, misshapen fruit that tastes bitter, eventually killing the tree. There is currently no cure. “In fact, one more orange juice plant in Florida will close this year because there’s just not enough fruit. And while it’s not harmful to humans, the taste of the juice is being affected,” he said. Of 19 juice plants in the state, only 13 will remain after this year, Mirkov said. Those that close will never reopen because of costly new federal codes and regulations they would need to meet. “The South Texas citrus industry is now where Florida was in 2005 when they got hit by citrus greening,” he said. “At first, the disease here was limited to two small areas south of San Juan. Now there are 1,000 trees or more that are positive for greening throughout the Lower Rio Grande Valley. And because of a latency period of two years before a tree shows symptoms, there may be many more infected trees out there.” Mirkov has developed transgenic citrus trees, now being tested in Florida, that show resistance to the citrus greening bacteria, he said. But clearing federal regulatory mandates have been the biggest hurdle, severely slowing the movement of transgenic trees into commercial production. “Because they now contain two genes from spinach that provide the resistance, these are GMO trees,” he said. “They are genetically modified organism trees. But so far, it’s the only long-term solution for saving the country’s $13 billion citrus industry. And the current crop can’t be saved; they need to replant and start over again.” From seedlings, citrus takes seven to nine years to mature and produce fruit, he said. McCutchen said limes are also being severely impacted due to citrus greening, reflected by an increase in the wholesale price of limes from $10 per carton 10 years ago to $100 per carton today. “It’s not too late; we still have time to slow down the disease in Texas, Arizona and California,” he said, “But it’s going

to take a comprehensive approach of integrated pest management, outreach, research and deploying new technologies that appear to have great promise for combating this devastating disease.” After introductions by center director Dr. Juan Landivar, other AgriLife Research scientists discussed their research of a host of other invasive pests and diseases affecting local crops, including citrus, potatoes, tomatoes, peppers, watermelon, cantaloupes and onions. U.S. Congressmen (from left) Rep. Filemon Vela, Jr, D-Texas, and Rep. Collin Peterson, D-Minnesota, examine branches from a tree infected with citrus greening. Looking on are Humberto Garza, district director for Vela’s office (center) and Dr. Erik Mirkov (right), virologist at the Texas A&M AgriLife Research and Extension Center at Weslaco. At rear is Manny Gautreaux, operations manager at the Center. (AgriLife Communications photo by Rod Santa Ana)

“Several species of psyllids affecting all these crops are already here,” Landivar said. “And some continue their northward trek through Texas and beyond. South Texas serves as the entry point for the rest of the country.” Dr. Olufemi “Femi” Alabi, a Texas A&M AgriLife Extension Service plant pathologist at Weslaco, described, among others, the path of Zebra Chip disease, also vectored by a psyllid. The disease spread from Mexico in the 1990’s to South Texas in 2000 and is now found in the Pacific Northwest, posing a threat to the country’s $4 billion potato industry, he said. “There is a lot we don’t know about the pathogen,” he said. “How does it interact with the vector that carries it? How does the vector interact with the pathogen and how do they continued on page 35

H Featured Business

Rios Boots of Mercedes & Anderson Bean Boots T

he rhythmic whirring of Singer sewing machines thrummed in the background mixed in with the drumming sound as hammers pounded away. Employees moved quickly, with a single purpose. There were many different sounds, but all with one goal in mind...

making the perfect boot.

That’s been the focus for more than 150 years at Rio Boots of Mercedes and Anderson Bean Boot Company, two world-wide renown boot companies known for quality, an attention to detail and durability. These are boots where orders come in from across the country – from the rancher and farmer who needs sturdy boots to the everyday shopper who wants something special and comfortable and even to the Hollywood stars, many of whom have visited these companies and proudly wear who they are on their feet. Just a few steps into my tour, graciously given by Steven Kahla, my entire perception of boots was turned “on its heels” (pardon the pun). I fit into the “shopper” category. I walk into a store looking for a pair of boots based on look and comfort. I’ve never given thought about the process so I was amazed at all the moving parts – and skills – it takes the workers at these two boot companies to create perfection (because nothing else will do). Rios Boots and Anderson Bean are two different companies focused on the same goal: A perfect fitting boot made with durability and dependability that many hard-working people look for. Anderson Bean boots are made with leather soles; some are hybrid soles that combine an all leather sole. Rios boots are made with all leather construction. As each boot is created, it moves along from inside the factory from station to station (not necessarily machine to machine) and each is handled by its own talented craftsman. More than likely, the craftsman has been doing his job for years – maybe a decade or more – and continually applies his skills with the same perfection in mind. This is not a simple process – it’s tedious. But for the customer – many who have been loyal to their brand for multiple generations – the end-product cannot be replaced by anyone else.

Written by: Michelle Martin Each craftsman has their own special talent and places their own unique artistry into each pair of boots. In fact, the proverb that states you are only as strong as your weakest link is brought to life here. The loyal and hard-working employees are the story of these companies’ successes. In today’s world when the word “factory” brings visions of machinery, pollution and mass production, Rios’ and Anderson’s factories are made up of sewing machines, hands making precision cuts and stitches, hammers and other sounds many of us remember from our homes growing up. Its machines are human and each boot comes from hard work and human sweat.

“ Anderson Bean and Rios Boots focus on perfection of a good quality-made boot,” Kahla said. “Our employees are all extremely talented and love what they do.” The skills are amazing – the extraordinary attention to the smallest of details, however, is like nowhere else. Anderson Bean and Mercedes Boots find detail as the single most important ingredient in every part of the boot-making process. If there is one flaw in the boot, you won’t find it on the shelves of a discount store – you won’t find it at all. If it’s not perfect, it doesn’t leave the factory. If a customer orders a custom-made boot, it comes with perfection. The premium hides and leather construction is something that you have to see for yourself. It is very liberating to see the boots being made here in the Rio Grande Valley, a beautiful product created in the United States.

Cotton and Grain Producers Golf Tourney

Forming Your Future

Kurt Schuster

AgMag Columnist

In the nature of this new magazine starting up, a good basic topic from the office is the best way to form, or even re-form, your company so you can get achieve the best combination of taxes, with the least headaches and as little liability as possible. Whether you’re a new small farmer, new partners forming a million dollar venture or anything in between, knowing the choices you have is in your best interest. In addition, for a lot of current operators out there it never hurts to take a look at what your current structure is, you might be able to change your current structure to one that could work better for you and your business. There are a myriad number of ways to structure a business, but we’re going to touch on the most commonly used ones for the sake of brevity and clarity. Some of the various operations I’m involved with underwent recently the transformation from one legal type of company to another with a modicum of professional muss and fuss instigated by attorneys, accountants and their associated ilk. Of course it needs to be said that I am neither an accountant nor a lawyer giving you professional advice, and my own input should NOT be considered professional consultation, so if any of the ideas here interest you please contact someone with more professional letters behind their name than myself. The best piece of advice that can be given in finding those quality operators in these situations is to shop around via word of mouth of others in the industry as professionals that know agribusiness well are typically a rare breed. Having someone on your side who understand the ins and outs of what can be (and usually is) a wildly variable business can go miles to helping you both figure out how to best make your business grow.

Sole Proprietorship/Regular Partnership As easy and simple as it sounds, a sole proprietorship is you and you alone involved in the entire process of running your business and there is no legal distinction between you and your business after you getting your license. Any and all revenue comes to you as you see fit. The best thing that can be said about such a structure is that it is incredibly simple and really needs little extra architecture. However, that’s also the downside in that with this lack of protective legal structure 28 Ag Mag

you have UNLIMITED liability in any areas of which you can think. Suffer losses? You and your estate are on the hook beyond your company. Have an interesting tax situation? Uncle Sam can come after you, your spouse, your estate, etc. As an ag operator you have a food safety issue? You have all the liability of lawsuits, forms, fees, and as we have seen recently in the Jensen farms case, even jail time. There is a lot of liability and little upside here beyond the ease of doing business. Where things get trickier is if you get into a partnership in this situation of not having a legally designated business format. Many a friendship and business relationship has been brought to ruin by not having the right legal documentation in place, and considering doing business on a handshake as a general idea is foolhardy. Deciding how much capital one person contributed versus labor, recognizing what kind of partnership you have for tax purposes, or even what to do when one partner wants to claim a loss are all real issues that if you do not have a legal means to deal with can and will come back to hurt. Beyond that, simply figuring out day to day operations without any such plan is an exercise in futility. Having no legal recourse in place, when troubles come it will take all the time, money, and pain in the world to sort out the mess created, defeating the very purpose of you trying to start a business in the first place.

Limited Liability Partnership A limited liability partnership combines aspects of both a partnership and of a full-fledged corporation. As the name suggest such a partnership exposes all the partners involved

to limited liability from the company and from the other partners involved. It also gives all the partners the ability to be directly involved in the management of such a business, instead of having a board of directors or shareholders. In such a business structure there are a variety of ways to form such a partnership with some LLPs having a managing partner acting as the de facto CEO, or other LLPs have partnership interests vested to various degrees. So then there is some flexibility when it comes to establishing the rules, rights, privileges and responsibilities of an LLP. This ability for some flexibility found within this business form is a tremendous benefit when youâ&#x20AC;&#x2122;re trying to form a business as it can give you ways and means to treat all members equally, but it should be noted that there is not as much flexibility comparatively in this form as can be found in an LLC. One of the big advantages of having and LLP is that profits are allocated among the members, which avoids the â&#x20AC;&#x153;double taxationâ&#x20AC;? problem found in corporations wherein the corporation is taxed and then stockholders are also taxed on any distributed profits. It should be noted that these profits and losses flow through to the partners regardless if any distributions are made. However, any income is taxed as a partnership, which deviates significantly from some of the varieties found in an LLC. A main disadvantage of an LLP format though is the liability protection afforded to this format can vary widely from

state to state and may or may not give full liability protection in every situation an in which an agricultural entity can encounter. Also, as noted earlier the ability to establish authority and corporate governance within an LLP is more at the discretion of the partners within the entity rather than through legal statute as found in an LLC, to generalize broadly. This of course is great if an LLP is set up correctly once and nothing then changes, but can render a company inflexible in future situations.

Limited Liability Company Remarkably similar to an LLP, but with significant and useful differences. An LLC shares the same hybrid partnership/ corporate form as an LLP, but gives the business owner, or owners, a wider variety of choices. What is best noted about an LLC is that are so many different iterations that can be made to fit your unique situation and that typically, but not always, changes can be made to that type in the future. An LLC can be set up and run by a single individual, or by many different individuals. An LLC can choose to be taxed as a sole proprietorship, a partnership, an S-Corporation or a C-Corporation unless that LLC consists of only one member, in which case a sole proprietorship is your only option. So then for an individual, an LLC gives you the individual continued on page 32

FFA Events Thursday & Friday, January 22-23

RGV FFA DISTRICT SHOW

Tuesday, November 25

Saturday, January 24

Wednesday, April 8

HOG VALIDATION

CITRUS FIESTA

Area X CDE’s

Monday, December 1

Monday - Sunday, March 2 - 8

Tuesday, April 28

STAR SHOW

RGV District FFA Check

Saturday, December 6

March 12 - 22

Tuesday, May 5

COWBOY CLASSIC PROSPECT SHOW

RGVLS

RGV FFA District Banquet

Tuesday, December 9

Tuesday, March 31

Tuesday, May 19

RGV AG TEACHERS PLANNING MEETING - Mission -

RGV Ag Teachers Planning Meeting Red Gate

RGV Ag Teachers Planning Mtg @ Mr. Alaniz’s

Friday, December 12

Wednesday, April 1

RGV DISTRICT FFA WELDING CONTEST

State FFA Scholarship Apps due

MAJOR SHOW ENTRIES DUE

Saturday, January 10

COUGAR CLASSIC PROSPECT SHOW

Sponsored by:

continued from page 29

ownership factor of a sole proprietorship with liability coverage that you cannot get in that form or an LLP because of the inability to have a single individual as a member in an LLP. It should be noted that you may be liable for a “self-employment tax” in this form. And although forming an LLC does involve more time and paperwork than a sole proprietorship, doing so is remarkably easy and shouldn’t be considered an impediment to using this structure. In having a multiple member LLC the corporate structure can be made to specially allocate shares of gains, losses, income, etc. if it is taxed in a partnership type LLC. However, in a S-Corp and C-Corp type LLC this ability is restricted. Generally in an LLC though you do avoid the “double taxation” issue found in traditional corporate structures. In addition, the paperwork and government reporting requirements for an LLC are markedly less than those found in traditional corporate structures. Most LLC’s are simple structures that can be made to tailor fit what you need. For example, if you want the ability to pass along more losses to help your tax situation, this is doable in an LLC. Also, the management structure of an LLC can be formed in specific ways chosen by the members. This can be both a positive and negative as you can have a lack of bureaucracy and less people to answer to, but at the same time could leave members without power in the organizational structure if not specifically granted. As with everything, find the best fit for your firm. However, LLC’s as an entity do have some distinct disadvantages that must be noted. Raising funds in an LLC can be more difficult than in a corporation where equity can be issued, or via an LLP where partners may be required to contribute equally. LLCs can have the same rules on capital contributions, but not always. Texas specifically taxes LLC’s through a “franchise” (or as the term has evolved now, “margin”) tax that typically, but not always, is relative to the net worth of the business and not the net income. In my experience once established it’s a trivial paperwork requirement but still a fee to be accounted with. In addition, LLC’s are not generally recognized for their liability benefits in Mexico, our neighbor to the south. This is a very complicated and unique issue that is germane for us in the Rio Grande Valley because of how much business is done in Mexico and other foreign countries. For those companies doing business in the region this topic should be explored fully before using this corporate structure within Mexico and other foreign countries in which operations are based.

S type Corporation An S Corporation, is a corporate structure typically, but not always, used for smaller sized corporations as the majority of

its benefits are conferred upon firms of that size. An S-Corp must be a domestically based entity that only has one class of stock and less than 100 shareholders involved. As such, much of the flexibility found in LLC’s is absent here by the fact that control of any S-Corp bears upon simply whomever owns the most stock. In addition, certain familial relations may or may not legally treat all individuals of a family as a single shareholder, which can either limit or unite shareholder interests. Unlike a C-Corp, in an S-Corp this restriction of a hundred shareholders can limit your ability raise funds through equity sales and could force an S-Corp to take on debt as the sole means of procuring capital. However, C-Corps are entities typically reserved for large national or multinational firms and are rarely seen in agriculture outside the largest businesses. As with LLC’s, profits and losses flow through an S-Corp to be taxed at an individual level and aren’t “double taxed” with the ability to use a variety of accounting methods still viable in an S-Corp but with less latitude than that of an LLC. Unlike an LLC though, in an S-Corp the profits and losses are passed through pro rata, or per share of that organization. So then the ability to allocate profits and losses that you have in an LLC is not available in an S-Corp. In terms of corporate governance, an S-Corp requires that a board of directors and accompanying officers be elected and used to govern the affairs of the entity involved, which can either be a positive or negative depending on how you want your firm managed. Also it should be noted that an S-Corp in general has greater reporting requirements to the IRS and various dens on your firm to keep these obligations met. As I cannot emphasize enough in contemplating your options, finding the best professional help in organizing and structuring your entity is paramount to having a successful business. Hopefully at this point eyes have not glazed over in reading some of the drier parts of this general summary. What should perk everyone up though is the fact that by having the best type of structure in place you can make your business more profitable, easier to run, and with least risk possible. The general discussion above should be best viewed as highlights of a larger conversation to be had with those best qualified professional individuals I keep harping about. Thanks for bearing with me as we navigate through some of the more tedious, if necessary, parts of running your business and remember the best time to make these changes is today!

continued from page 12

If cattle on a Texas ranch are found to be infested with ticks, the ranch will be designated as an infested premise and placed under quarantine. Animals on the quarantined premises are subject to restrictions, inspections and treatment as prescribed by the tick regulations, until the ticks are removed from the pasture. Treatment includes dipping or spraying cattle immediately with the acaracide Coumaphos, known by the brand name Co-Ral. Dipping is preferred though because total immersion more effectively kills ticks that may be concealed in the folds of the skin.

TAHC Horseback Team Rounds up Stray Cattle on Texas-Mexico Border AUSTIN - Members of the Texas Animal Health Commission (TAHC) and United States Department of Agriculture (USDA) Horseback Team recently apprehended approximately 300 head of stray and feral cattle originally from Mexico along the Rio Grande River near Langtry, located in Val Verde County.

There are some injectable treatments available (Dectomax- ivermectin family) that are also available for use in cattle. Horses cannot be dipped for safety reasons, and must be sprayed.

In the spring and summer of 2014, the team performed multiple roundups to catch misplaced Mexican origin cattle free ranging on the Texas side of the river, in an effort to protect the state’s animal health population from disease threats such as tuberculosis and brucellosis that are commonly found in Mexico.

Help continue to fight the battle against the cattle fever tick... Maintaining vigilance is the key in protecting the state’s livestock industry and ensuring marketability. The new TPQA is a prime case and point in why it is crucial for local producers, veterinarians and state and federal personnel work collaboratively to sustain a healthy livestock population.

Ty Billings, TAHC Region 5 inspector and horseback response team member, said, “It was great to partner with our friends at USDA in gathering the cattle. I look forward to working with them more in the future. We share the same goal of protecting the health of Texas’ livestock and serving and protecting our great state’s livestock commerce.”

The Horseback Emergency Response Team is the only team of its kind in the United States. The Team recently received the Emergency Management Association of Texas’ (EMAT) award for Excellence in Emergency Management. The team of approximately 25 responders includes TAHC livestock inspectors and USDA mounted patrol inspectors. The role of the team is to locate, contain, identify and move stray or feral livestock in the aftermath of a disaster, or when they pose an animal health or public safety threat. Dr. Dee Ellis stated, “The Horseback Team is a testament of the TAHC’s dedication, innovation and commitment to serve the citizens of Texas. We are proud to have a horse team available to help protect the State’s cattle industry from possible disease threats.” For more information about the TAHC, visit www.tahc.texas.gov or call 1-800-550-8242. Founded in 1893, the Texas Animal Health Commission works to protect the health of all Texas livestock, including: cattle, swine, poultry, sheep, goats, equine animals, and exotic livestock.

Ag Mag 25

2014 Farm Bill WOW!!! Have you seen what we have to do for the Farm Bill? Hopefully by now, most of Farmers/Landowners have attended at least one Farm Bill update meeting. There are a lot of changes to digest: from safety net programs administered by FSA (ARC-I, ARC-CO,PLC),Crop insurance changes, to Conservation Compliance. We have to learn the Farm bill to make decisions on what program to enroll the farm, and these decisions have to be made quickly. There is definitely a lot of information to absorb as to the decisions that must be made. There is no way one article can cover every situation on what every grower should do to accomplish this task, but here is an attempt to breakdown the process and identify some “Must Do’s” for the 2014 Farm Bill. Update: Base Acres and Yields. This is a key step. Growers should try to reallocate acres and update the CC yields for farms where ever possible. The last time CC yields were allowed to be updated was in 2002. Actual yields will be averaged from actual crops grown on that farm ground from 2008 to 2012. If the yields cannot be updated, the current CC yield will carry forward. FSA payments will be calculated from these updated yields, so the higher the yield the more safety net the grower will have moving forward. For example, some corn yields move from 81bu to 140bu—quite an increase.

MAKE SURE all farms are in Conservation Compliance. “IF the Grower farms ground that does not have an AD1026 ON FILE by JUNE 1 of next year, they will be DISQUALIFIED for SUBSIDY on CROP INSURANCE for 2016.” Growers must make sure all ground that is being planted to an agriculture commodity has an AD1026 Conservation Plan on file at FSA. Most ground already has an AD1026 plan in place, but growers should make sure all

34 Ag Mag

paperwork is in order. An oversight could be very expensive. Growers are encouraged to visit this link on FAQ’s about Compliance http://www.rma.usda.gov/help/faq/conservationcompliance.html

USE the Farm Bill tools to aid decisions (ARC or PLC). While this can look like a real challenge, it is not as difficult as one might think. There are a few different programs out on the web that can help with the decisions on what FSA program a grower should enroll their farms in for the 2014 Farm Bill. Most of the programs will help, and the program from Texas A&M AG and Food Policy Center goes above and beyond (https://usda.afpc.tamu.edu/). It is organized well and incorporates crop insurance, price projections, and updated base calculations. Also, we here at CROPGUARD GROUP, INC have been trained to use it and can help growers through this process.

Dates to remember: Now-Feb 27th Jan-March

Re-allocation of Bases acres and updating CC yields open ARC/PLC sign up

Please check with your local FSA offices as these dates may change.

If you have any questions, please feel free to contact us: C CASEY CLIPSON CROPGUARD GROUP, INC 2315 W Exp 83, STE 102, San Benito, TX 78586 956-361-5550

continued from page 25

interact with each other? We simply don’t have the facilities to handle that type of research.” One solution to the lack of a facility where new pathogens and vectors could be studied without threat of escape would be to update a nearby facility vacated by the U.S. Department of Agriculture several years ago and gifted to the Texas A&M University System, Mirkov said. After Landivar led a tour of the vacant laboratories, Mirkov said the entire facility needed remodeling and upgrades to meet code. “We’d really like to be able to work with the invasive insects and pathogens together,” he said. “But we really don’t have a high enough biosecurity level facility to do the work. If we could get the funding, we could open that facility back up.” Mirkov said it would take $4 million-$5 million to meet new codes. Landivar thanked the congressmen for touring the AgriLife center and meeting with local agricultural stakeholders, including Dale Murden, director of Rio Farms, a private agricultural research farm in Monte Alto, and Dr. Allen Rasmussen, dean of the Dick and Mary Lewis Kleberg College of Agriculture, Natural Resources and Human Sciences at Texas

A&M-Kingsville. The congressmen both said the tour taught them a lot about agricultural research. “It’s been very productive to bring the ranking member of the agricultural committee here today,” Vela said. “I think the public needs to understand how important it is to continue funding research, and that almost the entire citrus industry of Florida got hurt so badly. We need to make sure that we continue to fund that research so that the same thing doesn’t happen to Texas.” Peterson said he was impressed with the research facilities. “There’s some disturbing things I learned today, but also some positive things in the work Texas A&M AgriLife is doing to get ahead of it,” he said. “So, it’s been a very educational day and I’m glad Congressman Vela invited me here. “Sometimes you don’t learn anything,” he joked, “but today I learned a lot.”

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Writer: Rod Santa Ana, 956-878-8317, r-santaana@tamu.edu Contacts: Dr. Juan Landivar, 956-968-5585, jalandivar@ag.tamu.edu Dr. Bill McCutchen, 979-8458488, bmccutchen@tamu.edu Dr. Erik Mirkov, 956-968-5585, e-mirkov@tamu. edu Dr. Femi Alabi, 956-968-5581, alabi@tamu.edu

New HOLT CAT store now open. ment and engineer dealer for South, Central, North and Northeast Texas, held its grand-opening Aug. 26 in Edinburg for its new 47,000-square-foot full-service facility. More impressive is the fact the entire building is a green building. The facility operates completely on solar panels and was built with recycled materials – even the water is recycled. Several state and local supporters attended the highly anticipated event alongside Chief CEO Pete M. Holt. Army Sergeant First Class Dana Bowman, a former U. S. Army Golden Knight, who is a double-amputee and a wounded warrior advocate, made a special appearance at the event. Bowman performed a sky dive, with a large American Flag attached to him that gave everyone a sense of respect and reflected what HOLT stands for. HOLT employs more than 350 veterans, approximately 17 percent of its workforce, and is dedicated to actively expanding job

opportunities for those who have served in the armed forces. “HOLT is more than about providing equipment,” said employee Jesus Pena. “It’s about building relationships. Every co-worker and customer is like family.” The new store will offer a full range of services to the community from construction, oil and gas, agricultural use, rentals, parts and much more. Make sure you stop by and visit the building. Along with the new building, HOLT is a full-service store that will help keep its commitment to serving the agricul-

tural lifestyle of South Texas and the Rio Grande Valley.

HOLT is more than about providing equipment. It’s about building relationships. Every co-worker and customer is like family.

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HOLT CAT, the Caterpillar Equip-

The new HOLT Cat store Located at 10701 U.S. 281 North in Edinburg.

La Mu単eca FIELD DAY

36 Ag Mag

We are proud to announce that the

76th Annual Rio Grande Valley Livestock Show will take place March 13-22, 2015. Listed below are this yearâ&#x20AC;&#x2122;s entry deadlines as well as the entry fees.

ENTRY DEADLINE THURSDAY, JANUARY 15, 2015 Market Steers (one per exhibitor) $30.00 per head Market Hogs (one per exhibitor) $20.00 per head Market Lambs (one per exhibitor) $20.00 per head Market Goats (one per exhibitor) $20.00 per head Market Rabbits (one pen of 3 per exhibitor) $10.00 per pen Market Poultry (one pen of 3 per exhibitor) $10.00 per pen Horticulture (one per exhibitor) $10.00 per entry Jr. Breeding Rabbits $10.00 per head Photography (limit of 3 per exhibitor) $10.00 per entry

ENTRY DEADLINE FRIDAY, JANUARY 30, 2015 All Valley Cotton Style Show $10.00 per entry Breeding Cattle (Open Show) $30.00 per head Breeding Cattle (Group classes) $300.00 per entry *Breeding Cattle (Exhibit Only) $50.00 per head The Rio Grande Valley Livestock Show will only accept entries FFA - 4-H Shop Project $20.00 per exhibitor through our on-line program. Jr. Breeding Gilts $20.00 per head Entries may be submitted any Jr. Breeding Goats $20.00 per head time after November 3rd but Jr. Breeding Sheep $20.00 per head must be received in the Jr. Beef Heifers $30.00 per head Livestock Show Office by deadline. Go to: Jr. Commercial Female $30.00 per head Open Boer Goat $30.00 per head http://valley.fairmanager.com Open Commercial Heifer $30.00 per head Open Commercial & Purebred Female Pen Show $100.00 per entry

ENTRY DEADLINE FRIDAY, FEBRUARY 20, 2015 Horse Show (Youth/Open)

$10.00 per class