Spring Ag 2014

Spring

March 19 & 20, 2014

Agriculture 2014

PAGE 2

SPRING AG

Area agriculture program growing more than just crops

By CJ SIEWERT

csiewert@lesueurnews-herald. com

Now in its third year, the South Central Minnesota Agriculture Science Academy is expanding its offerings.

The program, for juniors and seniors at St. Peter, Le SueurHenderson, St. Clair and Nicollet high schools, offers classes such as animal science, plant science and agricultural business. But starting next school year, the ag academy will expand its course offerings to freshman and sophomores, as well as adding natural resources classes.

“Next year will be the first year of an intro class, so freshman and sophomores will get exposure to our agricultural academy,” said Gena Lilienthal, the program’s instructor. “We are very fortunate to have a lot more resources throughout the last three years.”

St. Peter Schools purchased 70 acres of farmland on the west side of town, which is now the proposed site of a new high

SOUTH CENTRAL MINNESOTA AGRICULTURAL SCIENCE ACADEMY The South Central Minnesota Agricultural Science Academy is in its third year of development and is currently serving students in St. Peter, St. Clair, Cleveland and Le Sueur-Henderson.

The academy is designed to provide hands-on opportunities through numerous agricultural tours, labs and guest visits.

Anyone interested in enrolling in the academy, joining FFA, learning more about the courses or becoming a business partner, should contact Gena Lilienthal, 507934-4210 ext. 462, <a href=”http://mailto:glilienthal@ stpeterschools.org” target=”_blank”>glilienthal@ stpeterschools.org</a>

school building, but until that construction becomes reality, the academy students are using it to farm crops.

Lilienthal’s agricultural business class manages the plot of land. Last year, the students planted corn and are switching to soybeans this year.

“They choose the seeds and they learn about everything from fertilizer application to insurance and management of the budget; even pre-selling and watching the

markets,” Lilienthal said.

Planting and harvesting requires expensive equipment that is well out of the program’s budget, but the academy has been fortunate to have local farmers volunteer their time and equipment.

“We have a partnership with two local farmers who run the equipment for planting and harvesting,” Lilienthal said. “We also have members of the community See AGRICULTURE 3

Spring Ag 2014 A special project of the Le Center Leader, Le Sueur News-Herald and St. Peter Herald Publisher: Stephanie Hill Managing Editor: Suzy Rook Media Consultants: Stephanie Hill, Kathleen Davies, Kacie Karels, Sherry Wilmes Ad Design: Nikkie Gilmore, MaryJo Blanchard Cover Design: Nikkie Gilmore Page Design: Kelly Kubista Spring Ag 2014 is distributed to subscribers and readers of the Le Center Leader, Le Sueur NewsHerald and St. Peter Herald at no additional charge. All rights reserved. ©2014.

All advertising contained herein is the responsibility of the advertiser.

No portion of the advertising or editorial may be reproduced without permission of the publisher.

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Wednesday, March 19-Thursday, March 20, 2014

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Working in the field and with livestock, they learned at an early age what farming is all about.

They continued their agricultural education through universities, classes and agricultural schools.

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Wednesday, March 19-Thursday, March 20, 2014

SPRING AG

PAGE 3

AGRICULTURE: Area program growing more than just crops From 2 that have had a big role in assisting with the project, whether it’s providing free labor or giving us advice on what we should do.”

Local farmers Doug Wenner and Jeff Leonard have volunteered to help the students.

Brothers-in-law, the men own and operate Timber Lake Sod and have taken over their family farm. They have both been instrumental in helping get the academy up and running.

Lilienthal says she has kept in touch with academy graduates.

She’s happy to hear that what they have learned as an academy student is translating well into the real world and their desired career paths.

Lilienthal said some former students are taking part in highprofile internships, at companies such as John Deere, while others are making a positive impact at their colleges.

Last year’s ag academy president, Bennet Baker, is currently a freshman at South Dakota State University majoring in dairy production.

The education he received during his time with the ag academy prepared him well for his classes at SDSU, he said.

“I wouldn’t be able to do what I am doing now without

Students from Gena Lilienthal’s Agriculture Business class last spring put more seed in the planter. From left, Matt Johnson, Ben Johnson, Jayce Vetter and Gena Lilienthal. (Herald file photo)

the academy,” Baker said. “The animal science class prepared me very well for SDSU and I am definitely ahead of the curve.”

Baker is ahead of the curve because of what he learned in the ag academy, but also because the academy’s animal science class gave him college credit.

He commends the ag academy for investing in the area’s students. While the academy continues to expand, many other agriculture programs around the Midwest are scaling back.

“It’s a positive thing because I’ve talked to a lot of students at SDSU who say their hometown

programs are getting cut,” Baker said. “Also, students need to be aware that there are a lot of job opportunities out there in agriculture and programs like this support that.”

Ag science classes offered at TCU Although Tri-City United

Schools does not offer an ag academy, one is in the planning phase.

TCU High School Principal Alan Fitterer said the 2014-15 TCU high school course registration shows fewer students registered for ag science courses, which has slowed the overall plan down.

“I’m hoping that it is just a one year issue and that the course registration numbers head back up for 2015-16,” Fitterer said.

TCU Schools does offer various agricultural classes, though, and has for decades.

Roughly 80 to 100 students in ninth- through 12th-grade take elective courses that include plant science, animal science and small-animal care. Eighthgrade students in the district are required to take a tri-semester agriculture course.

“We’ve got a full-blown agricultural program,” Fitterer said.

The high school last year started a garden on the school grounds, which is about a quarter-acre in size.

“We got some fill put in last year and once the snow melts

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we’ll be able to work on that,” Fitterer said.

TCU is also working on a school forest. The land was acquired through the will of a woman who passed a couple years ago.

Fitterer says the challenge with the forest is that it is located on property that is not adjacent to the school property.

“We are working with property owner to see if we can cross his land,” Fitterer said. “That’s another piece that we are looking at how it can be used in our ag science program.”

The agriculture program at TCU caters to the area’s demographic, Fitterer says, which has led to a strong program.

“It’s one of our strong programs at the high school level,” he said. “I think with a rural population it’s another extension of what students learn both on the farm and when you think about ag in our world today; it’s more than grains and cattle.”

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SPRING AG

Wednesday, March 19-Thursday, March 20, 2014

March is the right time to search for emerald ash borer The official start to spring may still be over a week away, but now is the best time for residents to look for signs of emerald ash borer. The Minnesota Department of Agriculture is urging homeowners, especially those in and near the EAB quarantined counties of Hennepin, Ramsey, Houston and Winona, to search their ash trees for potential infestations.

“The trees are still bare and the weather is warming, so this is the perfect time to look for emerald ash borer,” said Mark Abrahamson, MDA Entomologist. “If we want to slow the spread of this insect across the state, it’s important that people go out into their yards and look for signs of EAB.” There are several things residents should look for when checking for emerald

Emeral Ash Borer

ash borer.

1. Be sure you’ve identified an ash tree. This is an important first step since EAB only feeds on ash trees. Ash have opposite branching – meaning

branches come off the trunk directly across from each other. On older trees, the bark is in a tight, diamond-shaped pattern. Younger trees have a relatively smooth bark.

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2. Look for woodpecker damage. Woodpeckers like EAB larvae and woodpecker holes may indicate the presence of EAB. 3. Check for bark cracks.

EAB larvae tunneling under the bark can cause the bark to split open, revealing the larval (S-shaped) tunnels underneath.

4. Contact a professional.

If you feel your ash tree may be infested with EAB, contact a tree care professional, your city forester, or the MDA at arrest.the.pest@state.mn.us or 888-545-6684 (voicemail).

For more identification help, go to https://www.mda. state.mn.us/en/plants/pestmanagement/~/media/Files/ plants/eab/eab-treeshaveit.pdf Remember to look high at the midsection of your ash tree for these signs of a possible infestation. Using binoculars may also help with recognizing symptoms that could point to EAB. Minnesotans can also help stop the spread of EAB by

burning firewood where you buy it and don’t transport it, especially out of one of the four quarantined counties, unless the wood is MDA certified as heat-treated.

Emerald ash borer was first found in Minnesota in 2009.

The insect kills trees when the larva burrows under the bark, cutting off the tree’s food supply. EAB may be especially destructive in Minnesota; given the state has nearly one billion ash trees – the most in the nation.

For more information on emerald ash borer, go to www. mda.state.mn.us/eab Reach Regional Managing Editor Suzanne Rook at 507-931-8567. Follow her on Twitter @rooksuzy

Wednesday, March 19-Thursday, March 20, 2014

SPRING AG

PAGE 5

Minnesota standing corn row program helps reduce winter road closures, saves money Strategically placed rows of corn and a lot of teamwork are helping keep more rural roads open in central and southwestern this winter by reducing the amount of snow blowing onto roads that are prone to drifting shut, according to the Minnesota Department of Transportation.

The standing corn rows are part of a MnDOT program started about 15 years ago that pays farmers to leave corn stalks up in the winter. The corn rows break the wind’s force, causing the snow to collect around the corn rows instead of drifting onto the roads. The rows improve driver visibility, road surface conditions and lower costs of road maintenance.

Today there are 17 sites with more than six miles of standing corn rows. This year, the program got an extra boost when MnDOT snowplow driver Gene Munsterman, St. Peter, asked some farmers along his route to participate. Sections of Highway 111 and Highway 19 are prone to closures so Munsterman knocked on some farmers’ doors last summer. But the farmers were hesitant about bringing out their combines in the spring to harvest a few rows of corn and they weren’t interested in handpicking the corn either.

That’s when Gary Wyatt, University of Minnesota extension educator in the Mankato regional office, got the Future Farmers of

America and 4-H clubs in the Gibbon-Fairfax-Winthrop and Nicollet school districts to pick the corn. In return, the farmers would make a donation of the harvest proceeds to the clubs.

“This is a great example of the rural community coming together and making a difference during the winter driving season,” said Dan Gullickson, MnDOT living snow fence coordinator.

Under the MnD OT agreement, farmers leave a minimum of six rows of corn in the field. They get reimbursed using a formula based on yield, production, costs, inconvenience factors and price of corn.

When drifts close a road, MnDOT often brings out

larger equipment such as blowers and dozers.

“If those standing corn rows are not there, we would have had to remove four- to five-foot snow banks on roads,” Gullickson said.

To date, the cost to push back drifts along one specific road without standing corn rows is more than $3,700, he added.

The program returns $14 in savings for plowing, equipment use and labor for every dollar invested.

“We get the benefit of snow control and FFA and 4-H members made a big difference in reducing our costs and ultimately helping people get safely to their destinations,” Gullickson said.

Research conducted by

MnDOT, the University of Minnesota Extension Service and the Center for Transportation Studies show standing corn rows reduced the severity of injuries on curves by 40 percent.

When Munster man knocked on those doors last August, three new farmers signed up for the program.

One of those farmers donated all the proceeds from the standing corn rows to the GFW FFA Chapter. Four 4-H clubs also picked corn for farmers. Youth picked 413 bushels at three different sites last fall.

Gullickson said he hopes this example of neighbor helping neighbor will help the program expand.

“We’ve had a challenging winter with the cold, wind

and accumulating snowfalls.

There’s lots of corn in Minnesota and if we can work with more farmers, extension offices and FFA and 4-H groups, there could be more standing corn rows out there,” he said. “We appreciate the kids who gave of their time and the landowners who participate.”

Landowners who want more information about the standing corn row program can contact their local MnDOT district office; contact information can be found at www.mndot.gov. Additional information about the program is at www.mndot.gov/ environment/livingsnowfence/.

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SPRING AG

Wednesday, March 19-Thursday, March 20, 2014

Farm Bill: Initial assessment on commodity programs

By Kent Olson Ag News Wire

The "Agricultural Act of 2014," commonly called the farm bill, changes many programs and rules for farmers. Farmers need to make a crucial one-time, irrevocable election under the crop commodity programs. Farmers also have an opportunity to update their base acres and their base yields.

In the sections below, I summarize the new programs and the impending decisions for Minnesota farmers based on my reading of the bill in February.

However, please note that the final rules and interpretations will come from the USDA, and these may differ from my current interpretation.

What's gone!

Several previous programs are dropped in the new farm bill. Direct payments are gone

(except for a declining amount for cotton growers). The ACRE and DCP programs are repealed.

While the new programs may look similar to these, the rules are different: simpler in some ways, more complicated in other ways.

Choices for crop commodity programs Under the new farm bill, crop farmers need to make a one-time, irrevocable decision to elect either the Price Loss Coverage (PLC) program or the Agricultural Risk Coverage (ARC) program. If farmers elects the ARC program, they will need to choose between county coverage and individual farm coverage. Farmers can make the PLC and ARC-county decision crop by crop. For the ARC individual farm coverage, however, all covered commodities on all the farmer's farms need to be enrolled.

And here's a warning. If all the producers on a farm fail to make a unanimous election of which program to enroll in, the bill says the secretary of agriculture may not make any payments to that farm for the 2014 crop year, and the farm will be deemed to have elected PLC for the 2015 through 2018 crop years.

Price Loss Coverage (PLC) The Price Loss Coverage (PLC) program will make payments to farmers if a covered commodity's national average marketing year price is below its reference price (the new term instead of target price). Payments will be made on a crop by crop basis. For corn the reference price is $3.70 per bushel; for soybeans, $8.40; for wheat, $5.50.

Marketing years are: October through September for corn; September through August for soybeans; and July through June

for wheat.

Under PLC, payments to farmers are made on the basis of the difference between the national average marketing year price and the reference price, the farmer's payment yield, and the farmer's payment acres. Farmers have a one-time opportunity to update payment yields from 93.5% of their 1998-2001 average yields to 90% of their 20092012 yields. Payment acres will be 85% of either their current base acres (typically the average of their 1998-2001 acreages) or a reallocation of the current total base acres based on their mix of crops in 2009-2012.

Agriculture Risk Coverage (ARC) - county coverage In the Agriculture Risk Coverage (ARC) program, farmers can choose between county coverage and individual farm coverage. If either ARC option is chosen, the farm is not eligible for the Supplemental Coverage

Option (SCO) under the crop insurance options in the farm bill.

In the county coverage option, crop revenue is estimated using average county yields. A payment is made if the ARCcounty actual crop revenue is less than the ARC-county revenue guarantee. The ARC-county actual crop revenue is the actual county yield times the maximum of the national marketing year price or the loan rate specified in the farm bill.

The loan rate is $1.95 per bushel for corn, $5 for soybeans, and $2.94 for wheat.

The guarantee under the ARC-county coverage is 86 percent of the ARC-county benchmark revenue. The ARCcounty benchmark revenue is the product of the most recent 5-year Olympic-average county yield and the most recent 5-year Olympic-average marketing year price.

The Olympic average is calculated by dropping the highest and lowest yield or price from the most recent 5-years and calculating the average based on the remaining 3 yields or prices.

Under the ARC-county choice, the payment rate per acre is the difference between the ARC-county guarantee and the actual revenue, but the payment rate cannot exceed 10 percent of the benchmark revenue. The ARC-county payment for a covered commodity is the ARC-county payment rate for that commodity times 85 percent of the farm's base acres for that commodity.

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SPRING AG

Wednesday, March 19-Thursday, March 20, 2014

Understanding farm safety will help keep everyone safe The nursery rhyme does not state, “Old MacDonald had a farm and on this farm there was a bunch of dangerous things.”

But maybe it should?

Farmers perform an essential service, providing food and other products that consumers commonly take for granted.

The inner workings of a farm are something to treat with respect. Most of the families who live and work on a farm understand the potential hazards of such an environment. However, individuals visiting a farm may be unaware of these dangers.

Understanding farm safety helps keep everyone safe.

According to the organization Kids Health, the age groups at greatest risk for injury on farms are children ages 3 to 4 and teenagers ages 13 to 14. Most injuries

can be prevented, though, with a crushing or trapping injuries also may become restless and little education and precaution- from machinery that falls or tips dangerous.

Children should understand over. ary measures. that animals may unintentionally cause injuries. It may be in Animals Machinery Part of the excitement of visit- a horse’s defense mechanism to There are many different forms of machinery on a farm to ing a farm is seeing and petting kick when it is scared. To avoid help keep it working efficiently. the animals. Although many such injuries, never approach These items can pose serious animals may be docile and do- animals from behind. Also, safety risks. Although tractors mesticated, they can still be un- when baby animals are present, are the type of farm equipment predictable. Animals that are a female may be protective of her that causes the most injuries, startled by yelling or loud noises brood and go on the defensive. some adults still think it is safe to allow children to ride along.

Injuries that may result from farm machinery include pinching of clothing or parts of the body, where a person may become trapped in the gears or components of equipment; cuts from equipment that shears crops; bruising or cuts from projectiles thrown by mowers or other field equipment; and

Esti EE mat es

tions that can be taken when visiting a farm. * Don’t allow children to wander around unsupervised. * Rides on farm equipment should be discouraged. * Before starting machinery, operators should locate children and other guests and clear them from the work area.

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Another inadvertent injury that may occur is from bacteria or viruses from the animals. Animal feces may contain bacteria, and there may be other microorganisms on the animals themselves. It is a smart idea to always wash your hands after handling a farm animal to prevent the spread of disease.

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Challenges facing farmers today and tomorrow Though farming was once big business in the United States, by 2012 less than 1 percent of Americans were professional farmers.

Many challenges face today’s farmers, many of which are largely unknown to the general public.

Many people have an outdated view of a farm as a small, familyowned and operated parcel of land where livestock is raised in open pens and crops are handharvested when ripe. The reality is that modern-day farms have had to overhaul operations to meet demand and remain competitively priced while adapting to the ever-changing ways technology infiltrates all parts of life. Greater public awareness of agricultural challenges could help the inEach of these factors present ob- dustry in the future. (Photo courtesy of Metro Creative Connections) stacles for today’s farmers.

Technology Rural farming communities are expected to make an effort to integrate modern technology into an industry that has been around for centuries. But such a transition in rural areas, where communications systems may not be as up-to-date as those in urban areas, is not always so easy.

According to the Manitoba Rural Adaptation Council, a shift from a resource-based to an information-based economy, compounded by the rapid introduction and expansion of new technology in the workplace, has altered farm operation and the skills in demand. Older workers who have been schooled in one way of agriculture may have a significant impact on labor supply and the vitality of farming as a career. Younger adults who are knowledgeable in technology may no longer seek out agricultural careers.

Decrease in farming as an occupation The United States Environmental Protection Agency says that only about 960,000 Americans claim farming as their principal occupation. As that figure has dwindled, the average age of

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SPRING AG

Wednesday, March 19-Thursday, March 20, 2014

Organic claims not always accurate In an effort to live a more environmentally friendly lifestyle, consumers have embraced organic foods in record numbers. They stand behind the idea that organic products are not only better for them, but also better for the planet. But the claims that organic food is safer, healthier and more eco-friendly may be more hype than fact. Some organic foods are not all that they seem to be, and when you dig for the dirt on “organic,” you might be surprised at what you find.

The variety of organic products available at specialty food stores and more traditional supermarkets has increased considerably. Food purists and environmentalists support this growing trend. Certified organic foods are grown without the use of pesticides, synthetic fertilizers, sewage sludge, genetically modified organisms or ionizing radiation. Organically produced meats are from animals that do not take antibiotics or growth hormones to produce heartier cuts.

The USDA National Organic Program sees to it that organic foods meet these stringent requirements and also that any companies that handle or process organic food before it gets to the supermarket or restaurant are certified as well.

However, consumers who embrace organic products might not be getting what they think they are.

The term “organic” conjures up images of local produce stands and farmers diligently caring for their crops. However, as organic foods have grown in popularity and the organic food industry has become a multi-billion dollar industry, the methods of bringing these foods to a store near you have changed.

While consumers may believe that organic broccoli was trucked in from a farm down the road, it actually may have traveled thousands of miles -- negating many environmental benefits in the process.

Many smaller organic businesses have felt the pressure to keep up with mainstream foods and have joined the ranks of commercial food production. In fact, some smaller companies have actually been bought out by large food gi-

ants. Organic Cow, a Vermont milk producer, now operates under the auspices of Horizon, a company based in Colorado. Cascadian Farm, which produces organic frozen dinners among other items, is a subsidiary of General Mills. Many mainstream food companies have their own organic alter egos, which would no doubt surprise consumers who support the organic food movement.

Even true organic foods shipped from small farms over short distances may not be able to meet the hype of the organic moniker. Plant physiologist and biologist Alex Avery’s 2007 book titled “The Truth About Organic Foods” talks about

origins of organic food and dispels some of the myths that prevail. Avery notes that organic foods are not pesticide-free because all vegetables contain about five percent of their weight in natural pesticides, some of which may be just as potent as manmade varieties. Avery also notes that more than 95 percent of conventional meat and dairy products in the United States are totally free of antibiotics and 99.5 percent of it is free of synthetic hormones.

Only one sample in 400 violates the antibiotic limits set by the FDA. Avery also states that there are no nutritional differences between or-

There are many consumers that would like to believe that organic foods are healthier and better for the environment.

But some research indicates that these claims may not be justified.

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SPRING AG

PAGE 11

FARM BILL: ARC farm coverage based on all covered commodities From 6 ty coverage (as described above).

The ARC-farm coverage is based on all the covered commodities on the farm, not crop by crop.

Under ARC-farm coverage, a payment is made if the actual revenue from all covered commodities is less than the ARC-farm guarantee. The actual revenue for each year is determined by the farm’s yield multiplied by the maximum of the national marketing year price and the crop’s reference price, summed over all covered commodities and divided by the farm’s planted acreage that year.

The ARC-farm guarantee is 86 percent of the ARC-farm benchmark revenue. The ARC-farm benchmark revenue is the most recent 5-year Olympic-average of the revenue from all covered commodities weighted by the ratio of the acreage planted to a covered commodity and the total acreage of all covered commodities. The revenue for each year is determined by the farm’s yield multiplied by the maximum of the national marketing year price

and the crop’s reference price.

The ARC-farm payment rate per acre is the difference between the ARC-farm guarantee and the ARC-farm actual revenue, but the payment rate cannot exceed 10 percent of the ARC-farm benchmark revenue. Under the ARC individual farm coverage program, the payment for a farm is the ARC-farm payment rate for that farm times 65 percent of the farm’s total base acres (compared to 85 percent for the county based coverage).

Payment and adjusted gross income (AGI) limits The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under the PLC and ARC programs and as marketing loan gains of loan deficiency payments (other than for peanuts) may not exceed $125,000.

A person or legal entity with a 3-year average adjusted gross income (AGI) over $900,000 is not eligible to receive any benefit from PLC and ARC programs,

supplemental agricultural disaster assistance programs (for livestock and trees), marketing loan gains, loan deficiency payments, conservation programs (starting in 2015), and some other payments (from previous bills). AGI includes both farm and nonfarm income.

An initial assessment The requirement to make a one-time, irrevocable election between PLC and ARC is a 5-year decision full of many uncertainties. An initial analysis for a few example farms in Minnesota shows that the ARC county coverage option is the best option for the 2014 crop year given current information. This quick analysis does not include the option of adding SCO and other new crop insurance options starting in 2015.

The reference prices under PLC ($3.70 for corn, $8.40 for soybeans, and $5.50 for wheat) are low compared to recent prices especially prices received in 2011 and 2012. For 2014, the markets seem to indicate a very low chance of a PLC payment for corn, a

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bit higher chance for soybeans, and perhaps a higher chance for wheat (but, in early February, less than 40 percent). The marketing years for 2015-2018 are full of more uncertainty. Unless market developments show an increase in worldwide production and thus decay in prices in the future in the weeks leading up to the as yet unannounced election deadline, the PLC option does not look like a viable option for Minnesota farmers.

The ARC individual coverage option appears less desirable due to the revenue loss being determined over all covered commodities and the payment calculated using 65% of base acres (versus 85% for the county option). A farmer will need to consider how variability in weather affects each of his or her crops differently.

If the yields for different crops move together and are more vari-

able than the county, then individual coverage may be the best choice. If crop yields do not move together and the farm’s yield pattern seem to match the county yield variation pattern, then the county based ARC may be the best choice.

With so much uncertainty regarding the next 5 years (which is normal for any 5 years into the future), let’s take a general view on the choice. PLC covers price drops and not yield losses. ARC covers revenue losses, that is, both price and yield changes. So, ARC is a more comprehensive program. If prices drop in a future year, the chances are due to higher total production so revenue will probably not drop as much as prices.

If yields drop across a wide swath of the production area, prices will likely rise, so revenue won’t drop as much as overall yields drop. If my farm and my county were to

suffer a yield loss but most of the country does not suffer a yield loss, prices would likely not drop as much as my yield drops so my revenue will drop. In this case, PLC would not make a payment, but ARC likely would make a payment. So for Minnesota, should a farmer bet on price changes or aim to protect revenue?

As the USDA finalizes the rules and with more time to fine tune these estimates and include more years as well as the SCO option starting in 2015, this initial assessment may need to be altered. But this is my view at this early date.

Kent Olson is an economist with the University of Minnesota Extension.

PAGE 12

SPRING AG

Wednesday, March 19-Thursday, March 20, 2014

Drought affecting corn crops prompts ethanol debate A drought that plagued most of the United States in the summer of 2012 decimated soybean and corn crops across America’s heartland. According to Reuters, during the drought ratings for corn and soybeans fell to their lowest since the major drought of 1988 and major farm states, such as Iowa, Nebraska, Illinois, Missouri, and Kansas, were not able to produce enough crop necessary to meet food and feed demands. To further exacerbate the shortage, the United States government still mandates that 42 percent of this year’s crop be turned into ethanol as part of the Renewable Fuel Standard adopted in 2005, angering some farmers.

Livestock producers who rely on corn for feed are angry that the mandate has not been modified in lieu of the record-breaking drought and shortages. Corn prices already are at all-time highs, and requiring that 42 percent of the yield be relegated to fuel will considerably drive up the cost of the remaining corn.

Not only will livestock farmers be affected but so will those who enjoy corn in everything from breads to cereals. Consumers on limited budgets may find corn is simply too expensive.

Ranchers and farmers are not the only ones hurting as a result of the corn shortage. The ethanol plants themselves are also feeling the crunch. A lack of corn means that many plants are remaining idle or not working at capacity. Some plants are not breaking even in terms of operational costs, potentially costing individuals their jobs.

However, supporters of the ethanol requirement are concerned that removing the allotted ethanol amounts from fuel will further drive up the cost of filling up at the pump. Drivers have already experienced high gas prices, and many are feeling the effect on their wallets. The

result is a catch-22 where no one wins.

Despite the talks, some economists say that the ethanol mandate suspension may do little to lower the cost of corn. Agricultural economist Scott Irwin from

the University of Illinois says that because of the backlog of demand of corn for fuel, it would be a few months before any price change would reach the market. Plus, the change would be See DROUGHT 13

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Wednesday, March 19-Thursday, March 20, 2014

SPRING AG

PAGE 13

Get the scoop on soyfoods’ health benefits

Corn shortages are sparking debates as to whether corn should be used for fuel or food. (Photo courtesy of Metro Creative Connections)

DROUGHT: Many corn crops devastated by weather From 12 nominal because it would be hard to implement such widespread changes in corn for fuel consumption since the country has come to depend on a set amount.

High summertime temperatures combined with histori-

cally low rainfall totals this past season devastated many corn crops that would be put to use as animal feed and ethanol fuel.

The debate over whether or not ethanol mandates should be temporarily ceased is bound to continue until corn supplies are replenished. TF12B663

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The prevalence of soy products in recipes and ready-made foods has skyrocketed in recent years. Soy-based milk products and others that substitute soy with more traditional ingredients are no longer relegated to the outskirts of the neighborhood grocery store. While soy is being consumed in greater numbers than in decades past, some people are still unaware of the various health benefits and advantages to including soy in their diets.

Soyfoods provide a number of nutritional benefits for people of all ages.

According to the Soyfoods Association of North America, recent studies have indicated that eating soy at an early age may help protect against some diseases, including breast cancer, later in life. Soy also may help improve cognitive function.

People largely turn to soy to maintain a healthy weight and control their cholesterol, as soy can replace foods that are higher in saturated fat, calories and cholesterol. For example, a glass of whole milk contains 150 calories and eight grams of total fat. Soy milk, however,

(Photo courtesy of Metro Creative Connections) comes in between 80 and 100 calories and may have roughly four grams of fat.

The fat is mostly healthy fats, as there are only trace amounts of saturated fat in soy products.

Soy also has cholesterol-lowering properties and can be beneficial to those who are lactose intolerant. Vegetarians

and vegans routinely turn to soyfoods as a main protein source.

Soyfoods can offer a number of healthy benefits, including providing a lean protein source that is lower in saturated fats than other forms of protein. Calcium-fortified soymilk offers the same nutritional value as cow’s milk but can still be consumed by those who are lactose intolerant. Soy can help many people maintain healthy weights, and soyfoods promote cardiovascular health.

While soyfoods can be beneficial, such foods are not perfect. Allergies to soy are possible, and as with any dietary supplement, moderate consumption may be all that’s necessary to provide nutritional benefits. Overconsumption of soy may not provide the desired results.

One concern regarding soy is its relationship to genetically modified organisms, or GMOs. Reports suggest that the vast majority of soybeans produced in the United States are GMOs. While these soybeans are primarily used for livestock feed, many foods that people eat also contain GMO soybeans. The jury is still

Friend of the Farmer

out with regard to the impact that GMO foods have on personal health. Proponents of GMOs say their use makes agricultural products safer and more affordable. GMO crops may be resistant to pests, eliminating the need for herbicides and pesticides. But opponents of GMOs say that they may be harmful, as they might have less nutritional value, incite allergic reactions, cause problems with liver function and be harmful to the planet.

Individuals who still want to enjoy soy products such as tofu, miso, tempeh, soy sauce, soy milk, and foods that contain soy lecithin, an emulsifier, can opt for organic products and those that specifically advertise no GMO ingredients. More and more food manufacturers are heeding consumer demand for foods that do not contain GMOs, and producers of soyfoods are no exception. Brands like Silk(R), Tofurky(R), Wildwood(R) and Eden Foods(R) produce soy products that are GMO-free. Read labels to determine if soy products contain GMOs. TF144111

Brad O’Keefe and William Novosad are the loan officers that work with farmers at the First National Bank – Le Center

Why do business with us? We have been financing Ag producers for decades and understand the needs of today’s producers. We can meet those needs with a complete line of agribusiness financing products to help your farm flourish.

We work with FSA, RFA, and the SBA which allows us to offer a variety of programs at assist young-beginning farmers, expansion projects or purchases, and restructure programs. We are also an approved lender for the AgBMP program which provides low interest loans for septic and waste management systems and conservation tillage equipment.

From crop production lines of credit and machinery & equipment loans to livestock and real estate loans, producers in our area and surrounding communities can count on us for solid financial support. Bill Novosad and Brad O’Keefe are ready to discuss your needs in the bank or on your farm, just give them a call.

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PAGE 14

SPRING AG

Wednesday, March 19-Thursday, March 20, 2014

CHALLENGES: Average age of farmers continues to rise SAFETY: Make safety a can pollute water, while the use of fertilizers and chemical pesticides is bad for the environment.

Many farmers, however, have altered their methods to be more environmentally friendly and selfsustainable in the process.

Climate change is another environmental issue farmers must Environmental concerns Many farmers have come under deal with. Strong storms and sescrutiny for how farming impacts vere droughts have made farming the environment. A growing em- even more challenging. phasis on sustainability and conservation has led many people to Financial fall-out The ongoing recession of the protest certain farming practices. last half-decade has also affected Protesters claim that certain pracfarmers.

In November of 2012, tices, such as raising livestock,

From 9

Labor Statistics notes that roughly 40 percent of the farmers in this country are 55 years old or older.

This has led to concerns about the long-term health of family farms throughout the United States.

the United States Bureau of Labor Statistics indicated that the unemployment rate within the agriculture, forestry, fishing, and hunting industries was at 13.6 percent, far higher than the national unemployment rate. As a result, many farm families have found themselves stuck between a rock and a hard place, as rising costs for equipment and technology are being coupled with decreasing profits and rising unemployment.

Further complicating matters is competition from corporations and international food producers who have made it difficult for

family farmers to turn a significant profit. Many family farmers rely on loans and lines of credit to survive, but thanks to changes in the financial sector that saw banks become less willing to extend lines of credit, some farmers are facing bankruptcy.

Though it can be easy for those who do not work in the agricultural industry to overlook the struggles facing today’s agricultural professionals, a greater understanding of those struggles and the challenges that lay ahead can benefit the industry and its employees down the road. TF132913

priority when visiting a farm

From 8 * Don’t allow children near machinery. * Children under the age of 16 should not be allowed to operate any farm vehicles. * Watch for hand tools or other equipment, and keep children away from them. * Do not touch animals unless a farm worker allows it.

Then follow his or her instructions.

* Don’t provoke farm animals or attempt to startle them. * Supervise children around ponds, feeding troughs or manure lagoons. It only takes a few inches of water to pose a drowning risk.

Farms are interesting places to visit, especially for children. Safety should always be a priority when visiting a farm.

TF129487

ORGANIC: Consumers should keep an open mind From 10

ganic and conventionally produced foods, which debunks the myth that organic foods are more nutritionally sound.

Organic foods also may contribute to a higher carbon footprint.

Instead of using chemical fertilizers to feed produce, the use of animal manure may mean clearing out land for grazing and creating its own problems in off-gassing and water contamination that has been associ-

ated with raising livestock. Furthermore, the U.K. Department of Environment and Rural Affairs states, “A shift towards a local food system, and away from a supermarket-based food system with its central distribution depots, lean supply chains and big, full trucks, might actually increase the number of food-vehicle miles being traveled locally, because things would move around in a larger number of smaller, less efficiently packed vehicles.”

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SPRING AG

Wednesday, March 19-Thursday, March 20, 2014