2015 January & February ANR Newsletter

Cooperative Extension Service Nelson County 317 S. Third Street Bardstown, KY 40004 (502) 348-9204 Fax: (502) 348-9270 http://nelson.ca.uky.edu

RON’S RUMBLES Happy New Year. I hope everyone had a happy, safe and healthy holiday. By the time you get this in the mail I will have completed 30 years as the Nelson County Ag Agent. It’s been a great 30 years. I couldn’t have asked for a better community to live, work and raise a family in. The old saying is, “time flies when you’re having fun”. I guess I’m having a lot of fun because it sure doesn’t seem like I’ve been here that long. I would like to thank each of you for allowing me to have about the best job a person can have. I have always had great folks to work with here in the office and when you work with farmers you work for the best people on earth. My plans right now are to continue to work for another year or two.

Upcoming Events Jan 16 KY Commodity Conference -Bowling Green, KY Jan 16-17 KY Pork Producers Annual Meeting-Bowling Green, KY Jan 16-17 KY Cattlemen’s Association-Owensboro, KY Jan 27 Restricted Use Pesticide Certification 10am or 2pm or 6pm-Nelson County Extension Office Feb 5, 7:00– Nelson County Beef Cattle Association Meeting Extension Office

A lot of things have changed in 30 years. We have gone from 160 dairies down to about 10. We only have 4 hog Feb 26-KY Alfalfa Conferenceoperations left of significant size. We Cave City, KY have about 1/3 of the tobacco we had 30 years ago. During that time frame Ron Bowman we lost about 25% of farm acres to County Extension Agent development. That being said 2013 for Agriculture/Natural Resources (Continued on page 2)

saw a record high of farm income.

Nelson County participates in a program called “Feeding America”. The mission of this group is to serve those in need by acquiring and distributing donated food, grocery items and government commodities. 30 volunteers are needed to help bag, box and distribute the food. February 25th will be agricultures turn to volunteer. If you would like to help from 8:30AM to noon please call me at 348-9204 to get your name on the list.

If I can help, don’t hesitate to call.

MAKE FARM RECORD KEEPING A PRIORITY Source: Steve Isaacs, Extension Agricultural Economist

Record keeping may not be every farmer’s favorite activity, and probably not the reason you got into farming as a career. With time, patience and a commitment to get it done, it can make your financial life a lot less worrisome.

Record keeping doesn’t have to be stressful. It’s a way to discover things about your farm that will help you make better long-term decisions. You can use a ledger book or a computer—whatever helps you maintain consistency. Software programs can make your data more meaningful.

Software has become more user-friendly over time, and while it may not make the record keeping process fun, it could help you see the overall picture of your operation. Some programs track purchases of inputs and how you use the input on a particular enterprise or field.

You’ll be able to keep track of repair and maintenance records for specific farm equipment and produce balance sheets, income statements and cash flow budgets.

For many livestock operations, a good time to start keeping records is when the veterinarian comes to check the herd. Vets usually charge per head, so that data can help you develop a list of animals that need attention. You can use the same data to develop health histories of your animals, which will lead to more informed exams and diagnosis in the future.

Make record keeping a team effort for your family. Sit down and work on the records and budget together. Perhaps one person can read the information while another person types it into the software program or writes it in the ledger book. Also, if you do a little bit each 2

day and don’t save it all up for the end of the year, you won’t become overwhelmed.

If you’ve done the work throughout the year, year-end procedures can feel more satisfying. You can generate year-end reports with a few simple clicks and not have to sort through stacks of bills lying around the home or office.

The University of Kentucky College of Agriculture, Food and Environment’s Department of Agricultural Economics has several tools online that could help with budgeting and decision making. Visit http://www2.ca.uky.edu/agecon/index.php?p=29 to see what is available.

THE ESOPHAGEAL FEEDER – A LIFE-SAVING TOOL FOR CALVES Dr. Michelle Arnold, Ruminant Extension Veterinarian, University of Kentucky

“Failure of passive transfer” of immunity (also called “FPT”) occurs when a calf fails to absorb an adequate quantity and quality of immunoglobulin prior to closure of the intestine that occurs at approximately 24 hours after birth. FPT has been linked with increased calf morbidity (sickness), mortality (death), and a reduction in calf growth rate and feed efficiency. It is estimated that of the calf deaths occurring in the first 3 weeks of life, approximately one-third are due to inadequate colostrum intake. Early and adequate consumption of high quality colostrum is considered the single most important management factor in determining health and survival of the neonatal calf. There are 4 key factors (the 4 Q’s) that contribute to the goal of successful passive transfer of immunity: Quality: Feeding high quality colostrum with a high immunoglobulin concentration (>50 g/L of IgG) or use of a good quality powdered colostrum replacer (not a supplement); Quantity: Feeding an adequate volume (4 quarts to Holsteins; 3 quarts to smaller breeds) of colostrum; Quickly: Feeding colostrum promptly after birth (within 1-2 hours and by 6 hours maximum); Quietly: Passing the tube too quickly may result in damage to the laryngeal area and passage into the trachea and lungs. Keeping 3

the calf calm minimizes the risk of aspiration pneumonia.

The esophageal feeder is a tool designed to deliver colostrum when a calf is unwilling or unable to nurse. The inability to nurse may be due to a variety of causes. The process of calving may result in oxygen deprivation to the brain for a prolonged period of time, bruising, and occasionally broken bones. An extended period in the birth canal can result in a swollen head and a swollen tongue that cannot suckle. Exceptionally cold weather may contribute to delayed nursing. Large teats may be difficult for a calf to suckle. Regardless of the reason, colostrum delivery can be accomplished quickly and safely with an esophageal feeder if proper technique is followed. The steps involved in using an esophageal feeder are as follows: Prior to tubing the calf, examine the feeder to make sure it is clean and undamaged.

The length of the tube and the size of the calf will dictate how far the tube should be inserted. Compare the tube length to the distance between the mouth of the calf and the point of the shoulder.

This is the approximate distance the tube should be inserted.

The calf should be standing if possible. Place its rear end into a corner and hold its head between your knees. If the calf won’t stand, at least sit it up on its sternum (breastbone) and hold the head between your legs.

To insure that no fluid runs into the mouth of the calf that could be inhaled in the lungs, either kink the plastic tubing or clamp it off during passage.

Moisten the end of the feeder (the ball) with colostrum to make it more slippery.

Stimulate the calf to open its mouth by putting pressure on the gums or pressing on the roof of the mouth with your fingers. Do not hold the nose up; keep the nose below the ears to reduce the risk of trauma to the back of the throat.

Gently insert the tube into the mouth over the top of the calf’s tongue. When the rounded end hits the back of the tongue where there is a ridge, the calf should swallow. Wait patiently until the calf swallows then slide the tube gently down the esophagus.

Prior to administering the colostrum, check that you feel the tube in 4

the esophagus on the left side of the calf’s neck. You should feel two tube-like structures in the neck. The trachea (or windpipe) is firm and has ridges of cartilage all along its length. The esophageal feeder tube in the throat is firm but smooth.

Administer the colostrum by raising the bag above the calf and allowing the fluid to flow by gravity. Never squeeze the bag to hurry the process. The calf will begin to move (and vocalize) when it feels pressure as the rumen fills. The amount of colostrum needed depends on the size of the calf. Holsteins can readily handle a gallon while smaller breeds need approximately 3 quarts. Do not remove the tube until the fluid has had time to empty into the rumen.

Again, kink the plastic tube or use a clamp before pulling the tube out in one swift motion.

Immediately wash the tube and feeder in hot, soapy water. Follow with a chlorine and hot water rinse in order to remove the film of fat and protein that adheres to the inside of the feeder. If not properly cleaned and disinfected, you risk inoculating bacteria directly into the intestinal tract when a calf is most vulnerable to infections.

Keep the feeder in good repair-change them when they begin to show any signs of wear.

Esophageal feeders come in a range of sizes and designs, depending on whether to be used in calves, yearlings or adult cows. The calf esophageal feeder generally consists of a plastic pouch or bottle which holds the colostrum with an attaching plastic or stainless steel tube and a ball or bulb on the end. One gallon capacity feeders are recommended to deliver colostrum because recent research has proven a full dose administered all at once is much better than two smaller feedings. In the past it was thought that feeding smaller volumes of colostrum by a nipple was best because it stimulated closure of the esophageal groove and absorption of immunoglobulins was increased if the rumen was bypassed. It is now understood that there is no difference in absorption when colostrum is administered by esophageal feeder because the colostrum quickly spills out of the rumen into the abomasum. Ultimately, 48-hour serum immunoglobulin concentrations were found to be no different in bottle-fed or tubed calves.

In summary, learning to use an esophageal feeder may mean the difference in life or death to a newborn calf. Esophageal feeders 5

can also be used to administer vital electrolytes to scouring calves if reluctant to nurse a bottle. Videos are available on U-tube that show the process http://www.youtube.com/watch?v=ndj8O7_j6j8 or http://www.youtube.com/watch?v=GLHOe6xInJg but your veterinarian is the best resource to teach the proper technique for passing a tube correctly and safely.

U.S. & Kentucky Farm Economy 2014 U.S. Review 

USDA projects US net farm income to total $96.9 bil. in 2014, 21% below the 2013 level & the lowest since 2010.

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US farm cash receipts are expected to fall by 1% in 2014 as the anticipated drop in crop receipts (-12%) will nearly be offset by the forecast gain in livestock receipts (+14%).

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US farm expenses are estimated to be 6% higher in 2014, while government payments will fall by 4%.

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US ag exports are forecast to set a record in 2014 on the heels of strong livestock exports.

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Despite a slumping ag economy, land values continued to increase, although at a much slower pace, while debt levels increased modestly leading to a relatively strong financial position entering 2015.

2014 Kentucky Review 

KY ag cash receipts will total $6 billion in 2014, compared to the 2013 adjusted official USDA level of $5.7 billion.

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KY crop receipts are forecast at $2.8 billion (-2%) benefiting from higher priced 2013 crops sold in 2014.

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Strong beef, dairy, poultry and hog prices boosted KY livestock receipts to a 6

record $3.2 billion (+15%). 

KY net cash income (cash receipts + government payments – cash expenses) may retreat from the 2013 record high level but will remain relatively strong.

2015 Outlook 

KY cash receipts forecast to decline 5% in 2015 to $5.7 billion in response to a 15% forecast drop in crop receipts versus an estimated 3% gain in livestock receipts.

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Significantly lower grain prices and anticipated reductions in land rents will challenge grain profitability in 2015.

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Increasing livestock supplies may constrain the growth in record prices, but demand and profitability will remain relatively strong,

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Kentucky net farm income will be challenged with anticipated lower crop receipts and the ending of tobacco buyout payments, which have averaged 10% or more of Kentucky net farm income in recent years.

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Issues to follow in 2015 will be how cropland rents/crop mix adjust to a lower priced grain environment, export value, and volume with increased global crop supplies and a stronger U.S. dollar; the degree of expansion in the livestock sector amidst a favorable price/profitability outlook; and potential changes in U.S. energy policy and immigration reform.

Tobacco 2015 Outlook 

Excess world burley supplies and slumping demand will likely induce tobacco companies to reduce contract volumes in the U.S. and South America in 2015.

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Cheaper international leaf, combined with an appreciatingU.S. dollar, may reduce the competitiveness of U.S. burley and overall export volume in international markets.

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Dark tobacco production/demand may remain relatively stable, but reduced burley demand coupled with labor/infrastructure challenges will likely cause the value of Kentucky tobacco production to retreat below $400 million.

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Domestic and international tobacco regulations, trade agreements, immigration reform, and market demand for alternative tobacco products (e.g. e-cigs) will be key issues that U.S./KY tobacco farmers will follow in 2015

Wheat 2015 Outlook 

Planted acres about the same as 2014. Improved weather should reduce abandonment and increase harvested acres.

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A trend-yield of 45 bushels/acre would generate a wheat crop of 2.2 billion bushels.

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A return to more normal levels of exports would whittle away at the larger crop. If exports remain sluggish, building stocks will dampen price.

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Stocks projected to increase to 700 million bushels. Average price ranging from $5.30 to

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$5.60 per bushel.

Corn 2015 Outlook 

Planted acres projected to decline due to lower profitability compared to alternative crops.

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A 2% reduction in acreage and “normal” weather producing a trendyield of 163 bushels would suggest the 2015-16 corn supply marginally reduced from 2014-15.

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Ending stocks could be reduced to 1.7 billion bushels, which is a 12% stocks-use ratio.

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Export demand is the wild card. If China resumes importation of corn then ending-stocks would reduce further and would support slightly higher prices.

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U.S. marketing-year average price is forecasted in the

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$3.80 to $3.90 price range.

Soybeans 2015 Outlook 

Planted acres projected to increase due to greater profitability compared to alternative crops.

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A 2% increase in acreage and “normal” weather producing a trendyield of 44 bushels would suggest the 2015-16 soybean supply 3.6% larger than 2014 - 2015.

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Ending stocks could increase slightly to 470 million bushels.

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Export demand is the wild card. If China continues importation of U.S. soybeans into May instead of buying from South America, then stocks would reduce further and would support slightly higher prices.

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U.S. marketing-year average price is forecasted in the$8.60 to $9.00 price range.

Equine 2015 Outlook 

Continued strength in major markets likely to continue to support both sales and stud fees in 2015.

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Softer commodity prices likely to reduce pressure to convert hay ground to row crops.

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Lower feed prices resulting from large 2013 and 2014 crops may also have spillover effect in hay markets.

Beef 2015 Outlook 

Calf prices in spring likely to set new records as strong deferred futures prices and spring grass demand converge.

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Fall calf prices likely to be down slightly from 2014, but also likely to be the second highest fall calf market on record.

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Weather permitting, cow-herd expansion is very likely in many parts of the US as cow-calf operators remain very profitable 9

Dairy 2015 Outlook 

Increases in dairy cows numbers and productivity are expected to result in moderate production increases for 2015.

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Price declines expected for most components due to increased production and decreased exports.

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Farm level milk prices likely to decline throughout 2015, and margins likely to tighten closer to historical levels.

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Dairy producers will sign up for MPP-Dairy for the 2016 calendar year July-September.

Hogs 2015 Outlook 

Increased prices and lower feed costs are enhancing profits, and will lead to increased production (probably putting 2% to 4% more pork on the market in 2015).

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Prices will respond to increased supplies, declining by 10% to 15% for the year. Prices will decline most in the first half of 2015, but remain below 2014 levels for the whole year.

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Lower prices will help the competitiveness of U.S. pork in world markets, perhaps adding 200 million pounds (about 4%) to exports levels.

Sheep & Goat 2015 Outlook 

Higher prices are likely to continue for both goats and lambs.

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Kentucky inventories for both lamb and goats are likely to buck national trends, with numbers continuing to increase.

Poultry 2015 Outlook 

Declining feed costs will enhance profits for 2015 and are expected to lead to a 2% to 4% increase in production.

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Broiler prices are expected to decline slightly with the increase in production.

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Lower prices will keep the U.S. competitive in global markets, with exports near 2014 levels.

Horticulture 2015 Outlook 

Direct markets should continue to expand in 2015.

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Continued interest in local products from grocers, restaurants, schools, and other institutions should buoy demand for Kentucky produce.

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Nursery and greenhouse sales will remain fairly flat, but also buoyed by local market sales.

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Forestry 2015 Outlook 

The demand and pricing for sawlogs for factory lumber manufacturing softened in the second half of 2014. However, they will follow the US economy and are expected to be stable in 2014.

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Stave log markets will continue to be robust and are projected to be so for the next 5 years, reflecting the strong global demand for whiskey and wine.

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Demand and pricing for low grade logs including tie logs will remain stable in 2015.

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Pulpwood markets may be affected by the proposed purchase of New Page by Verso slated to occur in 2015

Economic Impact of Agriculture in Kentucky 

Overview

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Total economic impact of the agriculture industry in Kentucky is approximately $43 billion.

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The agricultural input sector, which has an economic impact of about $565 million, includes manufacturing of inputs in agricultural production such as fertilizers, pesticides, and farm equipment/machinery.

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Agricultural production includes the value of grains, oilseeds, vegetables, fruits, tree nuts, and other horticulture products grown in Kentucky. Production accounts for about 25% of total economic impact of agriculture, and generates about $11 billion.

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Agricultural processing is the largest sector in the agriculture industry, contributing about 72% of the industry’s total economic impact for a total of roughly

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$31 billion. The processing sector transforms agricultural products into finished goods such as cane sugar, confectionary, frozen foods, textiles and fabrics, etc.

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Apparel and Leather industries add to the economic impact of agriculture because their primary inputs are products from the processing sector.

These industries combined gener-

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ate about $548 million. 

The total economic impact of federal research and extension dollars equals about $11.5 million.

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Salaries and benefits comprise of outlays on research, extension, and support personnel and represent the largest expenditure in this sector. The economic impact of salaries and benefits totals $9.3 million.

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The category Other Operational Expenditures includes miscellaneous expenses incurred for research or extension purposes. These expenses contribute about

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$2 million to the total economic impact of this sector.

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Capital Equipment accounts for purchases of computer hardware, farm equipment, etc. Construction/Repair measures outlays on new construction and renovation or repairs of existing structures.

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The economic impact of agriculture in KY was estimated at about $42 billion dollars. Using more recent data, the economic impact is approximately $43 billion, which is a modest but significant increase. 

This economic impact analysis was conducted using a conservative approach. Therefore, the estimate is likely to be slightly lower than the actual impact.

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Coverage Selection for New 2014 Farm Bill Safety Net Programs Began Nov.17 Producers have Until March 31, 2015, to Choose the Program Best for their Operation Farm owners and producers are reminded that the opportunity to choose between the new 2014 Farm Bill established programs, Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), began Nov. 17, 2014, and continues through March 31, 2015. The new programs, designed to help producers better manage risk, usher in one of the most significant reforms to U.S. farm programs in decades.

USDA helped create online tools to assist in the decision process, allowing farm owners and producers to enter information about their operation and see projections that show what ARC and/or PLC will mean for them under possible future scenarios. Farm owners and producers can access the online resources, available at www.fsa.usda.gov/arc-plc , from the convenience of their home computer or mobile device at any time.

Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain rice), safflower seed, sesame, soybeans, sunflower seed and wheat. Up- land cotton is no longer a covered commodity.

Dates associated with ARC and PLC that farm owners and producers need to know: 

Now through Feb. 27, 2015: Farm owners may visit their local Farm Service Agency office to up- date yield history and/or reallocate base acres.

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Nov. 17, 2014 to March 31, 2015: Producers make a one-time election between ARC and PLC for the 2014 through 2018 crop years.

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Mid-April 2015 through summer 2015: Producers sign contracts for 2014 and 2015 crop years.

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October 2015: Payments issued for 2014 crop year, if needed.

To learn more about which safety net options are most appropriate for specific farming operations, farmers can use new Web tools at www.fsa.usda.gov/arc-plc ,which can be accessed from the convenience of a home computer or a mobile device at any time. To learn more farmers can contact their local Farm Service Agency county office at 502-3488664.

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Equipment Manager The Nelson County Conservation District is looking for an Equipment Manager. We have four pieces of equipment. Two no-till drills, one hay bale wrapper and one aerator. If you are interested and would like more information please call the Conservation District office at 502-348-3363.

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RETURN SERVICE REQUESTED

Bardstown, KY 40004

317 South Third Street

Nelson County

University of Kentucky

Cooperative Extension Service NONPROFIT ORG US POSTAGE PAID BARDSTOWN, KY PERMIT #028