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Miller Farms Uses a
Three - Pronged Approach
Cashing Out Carrots & Cancer Nitrogen: Is Less More? For the Advertiser Index click here
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Fall 2019
Magazines For Maximum Yield
PO Box 333 Roberts, Idaho 83444 Telephone: (208) 520-6461
www.carrotcountry.com Carrot Country Contacts Editor Denise Keller
editor@ColumbiaMediaGroup.com
Publisher / Advertising Dave Alexander dave@ColumbiaMediaGroup.com Director of Operations Brian Feist brian@ColumbiaMediaGroup.com
EDITORIAL INFORMATION Carrot Country is interested in newsworthy material related to carrot production and marketing. Contributions from all segments of the industry are welcome. Submit news releases, new product submissions, stories and photos via email to: editor@ColumbiaMediaGroup.com, or call (509) 697-9436.
Vol. 27, No. 3
Fall 2019
In This Issue:
4 8
Three-Pronged Approach
Miller Farms
Is Less More?
Keeping an Eye on Carrot Root Nitrates Late in the Season
12 Cashing Out
An Employee Stock Ownership Plan (ESOP) as an Alternative to a Straight Sale
ADVERTISING SALES For information on rates, mechanics, deadlines, list rental, direct mail, inserts or other information, call (208) 520-6461 or email: dave@carrotcountry.com
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Carrot Country magazine (ISSN 1071-6653), is published quarterly and mailed under permit #410, paid at San Dimas, CA 91773. It is produced by Columbia Media Group PO Box 333, Roberts, ID, 83444. Copyright 2019. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose without the express written permission of Columbia Media Group. For information on reprints call (208) 520-6461.
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Financial advisors share information about using an employee stock ownership plan as an alternative to selling your farm outright. See the story on page 12.
On the Cover: Paul Miller stands in his field in Hancock, Wisc., proudly displaying his carrots. See the story on page 4.
Departments:
11 In the News 13 Calendar 14 New Products
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Three-Pronged Approach Story and photos by Dave Alexander, Publisher
P
aul Miller is not a typical farmer. One of only eight carrot growers left in Wisconsin, his Hancock, Wisconsin, farm is only one part of a vast operation that also includes an Asa-Lift distributorship and a retail store/restaurant. It is a lot to manage, but with the help of family and key employees, all three prongs of Miller Farms are successful.
The Farm
Paul Miller started growing carrots in 1990. He was a farmworker on the same land he now owns, purchasing it when the previous owners wanted out. Miller Farms grows carrots, potatoes, green beans, peas and sweet corn on a mix of owned and leased land totaling 3,000 acres just off I-39 in central Wisconsin. Paul Miller’s grandson Jordan sprays a foliar fertilizer on a Miller Farms carrot field. Grandson Ian helps in the office and on the farm, and daughter Michelle runs the front office. Bob Dunn, Todd Miller and Paul Miller display their own Asa-Lift harvester in the shop.
The farm grows about 1,000 acres of carrots every year, primarily for a Bird’s Eye Foods contract for frozen sliced and diced carrots. To satisfy the contract, Miller typically will swap fields with neighbors, growing his carrots on a plot that the year before had potatoes to ensure good rotation. Rotation is a primary objective for disease and insect control for Miller. He maintains a four-year rotation for carrots and a threeyear rotation for potatoes. Having lost a couple of effective herbicides due to USDA restrictions, weed control is the farm’s biggest problem with carrots. Miller uses a weekly scouting service that tells him what he needs to apply to keep a healthy crop. This year, weeds have been less of a problem. Miller said he thinks it is primarily Mother Nature’s weather that created the benefit, but weeds are less problematic this year than in the last three or four years. Excessive rainfall caused the loss of about 20 acres this year. Because the farm’s sandy soil dissipates moisture, crews can usually get back to work in a day after a rainfall. This year, the fields have been saturated, and rain has kept coming. But the 20 acres lost will represent minimal economic impact. A sign points the way to Miller Farms in Hancock, Wisc., which produced 16,645 tons of carrots in 2018.
Jordan Miller and water truck operator Ray Hinojosa take a quick break for a photo.
Wind erosion is a large factor in this area of Wisconsin. When carrots are planted, barley is planted alongside as a cover crop. The barley emerges within eight days, keeping the sandy soil from turning into a potential dust bowl. Without this important step, when carrots did emerge without their protective barley, they would be literally cut off at the soil, the blowing sand acting
as sandpaper on the tender shoots. The barley is sprayed and killed when the carrots are tall enough and strong enough to survive the insistent winds.
The Shop
The second part of Miller’s business is the Asa-Lift distributorship that son Todd runs. In addition to selling harvesters, the CarrotCountry.com
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Miller Farms shop is the primary stocking outlet for AsaLift parts in North America. This business keeps Todd busy, as he is shipping parts to over 100 customers full-time, year-round in the U.S., Mexico and Canada. Occasionally, he will get an order for a part not stocked. In these rare cases, he gets the part in two days from the Netherlands and overnights it to the customer. Customer service is paramount to the Millers and one of the keys to success for the shop. They have taken parts to an airport 80 miles away on a Saturday so a grower could keep running.
The Store
Gramma Miller’s Farm Market sells fresh produce grown at Miller Farms and at neighbors’ farms, as well as collectibles and even fresh-baked specialty items. The store also has a restaurant inside. Its most successful product is the 5-pound fresh pea packs. “We get a lot of phone orders and people flock off the highway for those 5-pound bags of peas. People just go crazy over them,” Paul said. All three prongs of Miller’s mini-empire complement each other, making them perfect and natural crossovers. The store sells some of the farm’s crop. The shop benefits from years of farming experience. The farm gets to eat fresh-cooked meals onsite and has parts in stock for its own harvesters. But it still takes a good business plan, talent and skill to make them all successful. Miller has found the formula and the help to do just that.
One of only seven or eight carrot growers left in Wisconsin, Paul Miller checks early-season carrots in July. Planting is done mid-April and harvest is normally finished in November.
Fresh-baked rhubarb bread and fresh blueberries are just two of the many treats for sale at Gramma Miller’s Farm Market.
Stacks of Asa-Lift replacement parts like rollers, belts and electronics are ready for shipment at the shop.
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Is Less More? Keeping an Eye on Carrot Root Nitrates Late in the Season By Zachary D. Hayden and Daniel C. Brainard, Michigan State University
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Figure 1. Carrot root nitrate following late-season (September 7) top-dress urea fertilization at four different nitrogen rates (0, 30, 60 and 90 lb N ac-1) leading up to harvest in 2017 (October 9) and 2018 (October 22). Arrows indicate initial nitrate level on date fertilizer was applied.
Carrot Root Nitrate Following N Fertilization 200 180 160 140 120 100
Root Nitrate-N Concentration (ppm dry weight)
nformed nitrogen (N) management is critical to sustainable production of processing carrots. On the irrigated sandy soils of west Michigan, growers are accustomed to making multiple topdress N applications during the season to optimize yields and reduce N losses to the environment. However, many are also keeping an eye on how their management decisions affect nitrate levels in the harvested carrots. Nitrates are considered a potential human health concern, particularly for infants. Many growers of carrots and other vegetables for baby food are subject to processor rules defining allowable nitrate levels in the harvested product. Even for those not subject to regulation, the presence of excessive nitrates at harvest indicates an imbalance between N supply and N use by the plant, signaling opportunities for improvement. Nitrate accumulation in vegetables is influenced primarily by N fertilization rates, but other factors including cultivar, timing, weather, soils and foliar disease can also play a role. In Michigan, late-season foliar diseases including blights caused by Alternaria dauci and Cercospera carotae not only reduce mechanical harvest efficiency, but may also contribute to N accumulation in roots, as shoot uptake is limited. While N fertilization is known to be a dominant factor in nitrate accumulation, adequate full-season N fertility remains essential for optimizing carrot yield and quality. Late-season N applications are often made in part to promote adequate and healthy carrot top growth, which is important for effective mechanical harvest. However, these late-season applications run the greatest risk of increasing root nitrates at harvest, especially if top health is compromised from foliar disease or other stresses.
a. 2017 Urea 0 Urea 30 Urea 60 Urea 90
80 60 40 20 0 9/4/17
9/14/17
9/24/17
10/4/17 10/14/17 10/24/17
200 180
b. 2018
160 140
Urea 0
120
Urea 30
100 80
Urea 60 Urea 90
60 40 20 0 9/4/18
9/14/18
9/24/18
10/4/18 10/14/18 10/24/18
Date
N
7
Table 1. Carrot total yield and shoot fresh weight at harvest after different late season N topdress rates in 2017 and 2018
Urea N Rate
Total Carrot Yield
Shoot Fresh Weight
2017
2017
2018
2018 T/ac
(Sept)1
Nitrog 14.007en
1
Effects of Late-Season N Fertilization
We conducted two on-farm experiments in 2017 and 2018 to investigate how lateseason N fertilization and foliar disease severity influenced patterns of nitrate accumulation and yields in processing carrot production. All experiments were conducted on a commercial farm near Hart, Michigan, on
Figure 2. Disease.
0
29.9 a
35.9 a
5.7 a
6.0 a
30
28.5 a
39.1 a
6.0 a
7.3 b
60
27.6 a
38.1 a
6.3 a
8.1 b
90
36.3 a
37.3 a
6.9 a
7.9 b
Urea N fertilizer rates are expressed as lb actual N/ac
sandy soils under center pivot irrigation. Carrots (cultivar Cupar) were planted in late April and harvested in mid to late October in both years. In the first experiment, we looked at the effects of late-season (early September) N fertilizer rate (0, 30, 60 or 90 lb N ac-1) applied as urea on carrot yield, shoot growth and root nitrate content leading up to harvest. Before this September top-dress,
Nitrate-N Concentration (ppm dry weight)
Figure 2. Higher foliar disease severity leads to higher carrot root nitrate concentration at harvest in 2017 and 2018.
300
Foliar disease increases carrot root nitrate
c
250 200
2017 2018
150 100 50
b
a
0 Low
Med ium
High
(Merivon) (3-6%)
(Switch/Lu (25-50%)na Tran)
(Untreated (50-80%) Control)
Relative Foliar Disease Severity (Percent of leaf area affected)
all treatments had already received about 80 lb N ac-1 applied by the grower split between the planter and two top-dress urea applications. First, we found no effect of late-season N fertilization on total and marketable carrot yield in either year (Table 1). Higher rates of N did lead to somewhat larger carrot tops (Table 1); however, it is unclear whether this level of increase would be beneficial for mechanical harvest efficiency. Bulky tops can also be problematic for harvesters. In contrast, all September N applications increased root nitrate content relative to the control (Fig. 1). Root nitrates usually increase following fertilization due to root uptake and eventually decrease as plant N demand (to fuel shoot growth and metabolism) exceeds soil supply. However, in our study in 2017, root nitrate concentrations continued to increase linearly leading up to harvest for rates greater than 30 lb N ac-1, indicating the plants were unable to fully utilize all the nitrate in those treatments before harvest. In 2018, root nitrates were lower overall, and they generally peaked and started to decline prior to harvest for all N rates. One explanation for this difference between the two years is that carrots in 2018 were larger, had more vigorous growth and were harvested about two weeks later than in 2017. As a result, they likely had a higher capacity to metabolize nitrate and more time to do it before harvest.
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Carrot Root Nitrates
Effects of Foliar Disease
In the second experiment, we selected a subset of three treatments from a larger onfarm fungicide spray trial (run by Michigan State University plant pathologist Mary Hausbeck) to represent a gradient of foliar disease severity (low, medium and high). We then measured nitrate concentration in the carrots at harvest to evaluate the impact of increasing foliar disease on root nitrate levels. The treatments consisted of an unsprayed control (high relative disease) and two fungicides with variable efficacy (medium and low disease). What’s important to note is that in both years, the low, medium and high disease severity treatments represented 3 to 6, 25 to 50 and 50 to 80 percent of leaf area affected by disease, respectively. These levels of foliar disease are probably not uncommon to see across years, fields or locations within fields. Interestingly, we found a strong positive correlation between foliar fungal disease and root nitrate levels at harvest (Fig. 2). Root nitrate concentrations were seven to 25 times greater in high-disease treatments than in low-disease treatments in 2017 and 2018, respectively. Foliar disease reduces
shoot growth and demand for N, which all else being equal, will lead to lower utilization of nitrates from the roots. As a result, foliar disease severity is likely an important contributing risk factor for excessive nitrates at harvest.
Management Implications
• Avoid over-applying N fertilizer Michigan State University’s recommended total season N rate for processing carrots grown on mineral soils is 120 lb N ac-1. Several years of recent N fertility experiments in Michigan on sandy soils have confirmed that total N fertilizer rates equivalent to or below this level will maximize carrot yields while also keeping root nitrates well below levels for concern.
• Timing matters. N fertilizer applied later in the season holds greater risk for elevating root nitrate levels at harvest. While the maximum nitrate concentrations observed in our study were still generally below levels of concern for processors, avoiding top dress applications closer than four
weeks before the most likely harvest date will minimize risk. Furthermore, if a field tests high for nitrates, delaying harvest will provide additional time for nitrate levels to begin or continue to come down. • Be smart about foliar disease and other plant stresses. Excessive nitrate levels at harvest are most likely to occur when multiple factors interact to influence soil N supply and the plant’s ability to metabolize it. Some of these factors, including weather conditions, are largely outside our control. However, following best management practices to control foliar disease is important for reducing risks of excessive nitrate accumulation toward the end of the season. Furthermore, we know that insufficient N fertility in carrots can increase susceptibility to certain foliar fungal pathogens. However, in fields where disease levels are already high, applying N fertilizer late in the season with the goal of improving shoot health may run the risk of doing more harm than good.
The photo on the left shows an overview of a late-season nitrogen fertilization experiment in 2017; the photo on the right gives an aerial view of the experiment on Oct. 12, 2018. Research results highlight that greener shoots after higher rates of late-season (September) nitrogen fertilization don’t necessarily translate into higher carrot yields.
In the News Upping Intake of Vitamin A Could Lower Risk of Skin Cancer
A new study found that people who consumed more plant-based foods rich in vitamin A had a 17 percent lower risk of developing squamous cell carcinoma, the second most common type of skin cancer. The amount of vitamin A that was linked to the decreased cancer risk was equivalent to about two large carrots each day. The team of researchers at Brown University looked at data from two large studies on the diet and skin cancer and saw a link: people who took in the most vitamin A had a 17 percent lower risk of being diagnosed with cutaneous squamous cell carcinoma later in life. However, the study, published in the Journal of the American Medical Association, didn’t say for sure whether vitamin A actually caused the decreased risk; it just identified an association. An author of the new study wants to conduct a clinical trial to confirm if vitamin A could actively prevent skin cancer.
Vive Crop Protection Names New Leaders
Darren Anderson has stepped into the role of CEO at Vive Crop Protection. Previously, Anderson was the company’s president and is one of the co-founders of the company. He has been with the company for 13 years, working in product development, marketing and communications and new business development. Anderson replaces Keith Thomas as CEO. Thomas is now serving as executive chair of Vive’s board of directors and remains one of the company’s key investors. The company also welcomed two new additions to its leadership team. Dan Bihlmeyer is the new vice president of sales and marketing, and Barbara Hopper is the new chief financial officer and vice president of operations. Bihlmeyer has sales and marketing experience in the crop protection, seed and biotechnology industries. He has worked with BASF and Syngenta. Hopper brings experience in project management, strategic planning, financial management and mergers and acquisitions.
Darren Anderson
Dan Bihlmeyer
Stokes Seeds Grows Team
Stokes Seeds has hired James Young as product development and territory manager for the Midwest U.S. region. He will supply commercial vegetable seed recommendations to select producers in Michigan and Ohio, working with growers to match seed options with their crop and profit goals. Additionally, he will collaborate with Stokes Seeds Midwest territory managers and vendors to trial and select new products best-suited for the region. Young has more than 20 years of greenhouse, crop input and commercial vegetable seed sales experience.
Carrots Contain Cancer-Fighting Compounds
Carrots might contain cancer-fighting compounds that closely resemble those used in licensed drugs, research suggests. Researchers at Imperial College in London identified carrots among the fruits and vegetables with the most cancerfighting compounds, along with sweet oranges, grapes, cabbage, wild celery, coriander, dill and tea. The researchers say more work is needed to determine how much of these foods people should eat, as well as how they should be stored, processed and cooked.
Barbara Hopper
Can Carrots Conquer Climate Change?
Carrots made the short list of crops that may fare well in the face of climate change. Experts at London’s Royal Botanic Gardens, Kew, chose 11 seeds from plants and trees that showed characteristics such as resilience to drought and diseases, and suitability to increased global temperatures. The list included Daucus carota, the wild relative of the carrot. Daucus carota is inedible, and it looks different than the commercial carrot. But its genetic makeup makes it tougher than cultivated strands and able to withstand harsh growing conditions. It may hold genetic traits that are useful in cultivating a new species of edible carrot that can better withstand drought and warmer temperatures. CarrotCountry.com
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Cashing Out
An Employee Stock Ownership Plan (ESOP) as an Alternative to a Straight Sale By John Zitzmann and Bill O’Brien, Financial Advisors, Morgan Stanley
D
oes this sound like anyone you know? You’ve owned, run and built the value of your family farm for more than 30 years. You’re ready to cut back, enjoy your well-earned retirement and cash in on your years of hard work. No one in your family is ready to take over, so you’ve been thinking about selling the farm. But something is stopping you. For one thing, what about your employees? They’re good, loyal people who depend on you, and you’d like to be able to secure their futures. That may not be possible with a simple sale. Your legacy is also important to you; it’s hard to imagine the farm with a different name, or run by someone you don’t know or even repurposed in a way that alters the character of the community. And to be totally honest, you’re not 100 percent committed to full-on retirement. You’d like to maintain a presence on the farm – more like a “semi-retirement,” you might say.
Consider an ESOP
We have quite a number of clients who own and run family farms who are approaching traditional retirement age. Some want a typical retirement, certainly. But more and more baby boomers want to stay involved somehow. They may be ready to relinquish day-to-day responsibility, but they’ve put so much of themselves into the farm, and they want to continue to have a role in it. Under circumstances like these, one option we may discuss with clients is an Employee Stock Ownership Plan (ESOP). An ESOP offers a serious alternative to selling a business. It lets the owner or owners stay connected to the business, while still taking out significant wealth. It’s also a great option for rewarding employees. If you are familiar with ESOPs, it may seem odd to associate it with a sale of a farm. After all, aren’t ESOPs benefits plans, used to give employees a stake in 12
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Fall 2019
the enterprise? Well, yes, but an ESOP can be used to accomplish many of the key objectives of selling the business, including allowing the owner to cash in on the value of the asset. Because the ESOP trust purchases the equity from the owner, he or she can take cash out of the business without selling it to an outside party. Under this arrangement, the ESOP owns the company, and the employees are allocated shares based on their compensation. Since the ESOP trust itself owns the property, there is no outside buyer to disrupt the day-to-day operations of the farm. In fact, the owner is permitted to retain a significant percentage of the farm’s equity, determined by the preferences of those involved. The only threshold is that the ESOP must own at least 30 percent for certain tax benefits to be available.
Tax Benefits for Farm, Seller
ESOPs offer significant tax advantages for all parties. As long as certain requirements are met, the proceeds from the sale may be exempt from capital gains taxes. In fact, an ESOP is one of the few ways for an owner to transfer wealth from the farm without triggering capital gains taxes. The farm may realize important tax benefits, as well. The mechanics of how this works are a bit arcane to fully describe here, but the financial features of the ESOP provide several opportunities for meaningful tax savings. ESOPs are also popular when the market for the farm is soft. And they provide some flexibility to the owner for passing wealth to the next generation.
Weighing All Options
ESOPs are not for everyone. It’s a great solution for some of our clients, but not in every case. For example, it only makes sense if you have at least 25 to 30 full-time employees. Also, the owner
doesn’t get all the cash up front, which may be a deal-breaker for some. When considering whether an ESOP is right for you, you should consult your legal and tax advisors. When a client is looking toward retirement, we like to present several alternatives built around their needs and objectives. The ESOP is one alternative that can help overcome the hesitation some owners feel about selling. But it’s just one option. Morgan Stanley has been working with family farm owners for many years, and we understand the emotions that come with a decision to sell. It’s a mixed bag. Many of our clients have spent their lives on the family farm. On the one hand, it’s a once-in-a-lifetime opportunity. On the other, it’s a big change. We want to discuss every option and help them make the best choice for themselves and their families. After all, a client only does this once. It’s important to get it right. About the authors: John Zitzmann is a financial advisor with Morgan Stanley Global Wealth Management in Providence, Rhode Island. William O’Brien is a financial advisor at Morgan Stanley in Chicago. Authors’ note: The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Morgan Stanley Financial Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.
Calendar
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Nov. 20-21 Pacific Northwest Vegetable Association Conference and Trade Show Three Rivers Convention Center Kennewick, Wash. Sheri Nolan, (509) 585-5460 or www.pnva.org
Oct. 17-19 PMA Fresh Summit Convention and Expo Anaheim, Calif. www.freshsummit.com
Editor’s note: To have your event listed, please email Denise Keller, at editor@ColumbiaMediaGroup.com. Please send your information 90 days in advance.
• Dec. 10-12 Great Lakes Fruit, Vegetable and Farm Market EXPO DeVos Place Conference Center Grand Rapids, Mich www.glexpo.com
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New Products
Seed Spider Climbs Its Way Into Market Solex attributes the success of its Seed Spider to the popularity of “baby carrots” and the high seed rate of 1.2 million to 1.6 million seeds per acre. Seed Spider is a high-density control dribble metering system built to deliver high accuracy. Each canister with an electric encoder motor drives a sponge, which meters the seeds up to six lines. GPS sensing planting speed maintains a uniform seeding rate as the planter speeds up or slows down. A controller that communicates via Bluetooth with a junction box called a driver can control up to three drivers, with each driver capable of driving up to eight canisters or 144 lines of seed. Visit www.solexcorp.com.
Lindsay Adds Crops, Debuts Product Lindsay Corporation has added a handful of beta crops including carrots to its FieldNET Advisor, the company’s automated irrigation scheduling tool, which has also been updated with several new features and enhancements. In addition, Lindsay’s FieldNET Pivot Watch is now available through Zimmatic dealers in the U.S. and Canada. Announced earlier this year, FieldNET Pivot Watch is the company’s budgetfriendly irrigation monitoring solution. Pivot Watch works on any pivot brand and offers do-ityourself installation. It includes a solar-powered remote telemetry device and a monitor-only subscription to Lindsay’s FieldNET irrigation management platform. Pivot Watch has integrated cellular connectivity, GPS positioning and other embedded sensors, enabling growers to remotely monitor their pivots’ functions, such as current position, status, direction and speed, using the FieldNET app. Visit www.myfieldnet.com.
rd 33 33rd ANNUAL ANNUAL CONFERENCE CONFERENCE
NOVEMBER 20-21, 2019 Three Rivers Convention Center Kennewick, WA
(509) 585-5460
www.pnva.org
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Fall 2019
Used Equipment For Sale Vogel Super Cleaner 4 Row Carrot Harvester 790 Hours New 2011
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