2016 nov & dec anr newsletter

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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 Harvest time is about over as we head into November. As I suspected, and I thought I would never say this, we had too much rain this summer. Corn, soybean and tobacco yields were hurt substantially. It is not unusual to get a big summer rain and have bottom flooding. But, most of the time the benefit to the up ground makes up for those losses. This year yields are extremely variable across the whole county. It appears planting time had more to do with lost yields than normal. Early crops were very good but later plantings had severe disease pressure and suffered most. That being said our fall weather has been very good for getting crops and hay in. It’s that time of year when Prussic (Continued on page 2)

Upcoming Events November 10—Winter Grazing Conference, Princeton November 11—Beginning Farmer Meeting, Louisville November 18 @ 10—Herbicide Resistant Weeds & Solution, NCEO November 18 @ 2—Basic Beef Health November 21 @ 10, 2 or 6—BQA Training, NCEO November 22 @ 10—utritional Considerations for the Cow Herd, NCEO November 22 @ 6—Cattle Handling Training @NCEO November 24 & 25 Office Closed November 28 @ 10—Basic Beef Health, NCEO December 12 @ 10, 2 or 6—Restricted Use Pesticide Certification @ NCEO

Ron Bowman County Extension Agent for Agriculture/Natural Resources


Acid poisoning becomes a concern. We haven’t had a frost yet that will effect Johnson grass and other summer annual grasses that are a concern. Read the article inside if you graze livestock and need to make plans for frost. The other big issue is prices. Cattle really fell off this fall. It seems to have bottomed out the last couple of weeks. With all of the commodity prices lower than last year it’s going to be pretty tough to manage a profit. If I can be of help don’t hesitate to call.

Now is the time to think about your horses’ winter hay needs Source: Bob Coleman, extension equine specialist

It’s hard to believe that winter is right around the corner. If you’re a horse owner, you should already be preparing your winter hay supplies. How do you estimate the amount of hay you will need? If you have mature horses at maintenance level, you want to feed a mainly forage diet. The estimate would be similar to a 1,100-pound horse eating 2 percent of its body weight. That equals 22 pounds of hay per day. Feeding for 120 days, December through March would equal 1.3 tons of hay per horse. You can do a few things to make the best of your hay inventory. A feed test is a good idea and can get you started in making the best use of the nutrients supplied by hay and supplements. If you are unsure about how to take a sample for a hay test, you can contact your county agriculture and natural resources extension agent for help. Remember to feed the amount your horse needs each day. That essentially means taking some control over the feed intake. Feeding free choice can result in your horses eating more than they need each day to meet their nutritional needs. This can be a difficult task for those who are using hay rolls rather than squarebales. 2


Use a suitable feeder for your horses to limit waste. Feeding on the ground can result in significant losses of feed. Researchers, using square-bale hay fed in controlled amounts, reported waste in the range of 20 percent, while others, feeding roll-bale hay without a feeder, reported waste in the 35 to 38 percent range. In that case, horse owners would need at least a half ton more hay per horse. And finally, when you are buying hay, purchase the best quality hay possible. As the feeding season progresses, monitor your horses to make sure they are maintaining body condition and adjust feed as needed. If you are short on hay, you may need to feed some concentrate to provide all the nutrients your horses require. If you estimate correctly, you should have some hay left when spring grass finally arrives. It is better to have some leftover than to run out in March.

Family Living and Net Farm Income Everyone is aware that the net farm income (NFI) for farmers in Kentucky was down substantially in 2015. For the 175 Kentucky Farm Business Management (KFBM) farm families whose living expenses were included in the family living study, their average NFI was just $21,795. This is much lower than the five-year average of $156,784 and even below the ten-year average of $139,030. With that being said, you might assume there were adjustments made to either family living expenses or sources of non-farm income. Unfortunately, the answer to that is‌. not really. Total family living expenses for 2015 were $70,309. This includes contributions, medical, life insurance, capital items (non-farm) and expendables. This does NOT include income and social security taxes which were an additional $35,229. The five-year average family living cost (not including taxes) is $70,518 and the ten-year average is $69,483. The net non-farm income (including non-farm wages, social security, interest income, etc.) for 2015 was $29,714. The five-year average is $33,306 and the ten-year average is $33,687. 3


Operations will see significant pressure on their net worth when family living costs ($70,518) exceed the sources of farm and nonfarm income ($21,795+ $29,714= $51,509.) The difference of $19,009 ($70,518 - $51,509) must come from other sources. For example, the additional funds might come from savings accounts, stock accounts, sale of assets, etc. Or, it could come from additional borrowing of funds. In either case, the result is a decrease in net worth. Keep in mind the shortfall of $19,009 does not include the taxes paid in 2015 of $35,229. The mindset of deferring the taxes has created a cash flow problem for some clients. In other words, they potentially owe taxes on income built up from prior years and don’t currently have the cash to either pay the taxes or spend the money to defer it even further. There are a few cost saving measures that farm families can use to help trim the family budget. Health Savings Accounts (HSA) and flex spending accounts can be used to put money away pre-tax for out of pocket medical costs. Contributions could be made with commodities rather than cash which would decrease the amount of social security tax owed. If the operation is a sole proprietorship or a partnership where the husband and wife are the only partners and their kids (under 18)work on the farm, then the amounts paid to them could be deducted as employee wages with zero withholdings.These are just a few ideas to help in planning the family budget. Talk to your specialist or tax preparer about the details and rules involved with these types of options. From a specialists’ point of view, family living expenses can be a difficult subject to discuss with cooperators. During this downturn in the ag economy, it’s going to be necessary. It is going to be important to work on a realistic family budget based on the various sources of income. It needs to be written down! Remember, goals that are not written down are just wishes. Suzy L. Martin, slmartin@uky.edu Ohio Valley Farm Analysis Group, Owensboro, KY

Love Your Wife and Kids, Not Your Cows! John F. Grimes, OSU Extension Beef Coordinator (This article first appeared in

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the Early Fall 2016 issue of the Ohio Cattleman magazine)

The title of this article is a phrase I have used over the years in my Extension programming. Part of the title seems fairly obvious; Of course we love our wives and children! The second part of the title may seem a bit questionable to some of you. Most cattlemen would not raise beef cattle if they didn’t genuinely have the animal’s best interests in mind in terms of daily management that contributes to animal welfare. However, the second part of the title serves as an opening to a seasonal topic that is very appropriate to discuss at this time of the year which is culling beef females from the herd. Research studies from across the country indicate that the typical culling rate of the nation’s beef cow herd falls between 15 – 20%. Beef cow income usually makes up 10 – 25% of the gross income generated by a cow herd. In many herds, cull cow income will be the difference between an annual profit or loss. We are rapidly approaching the time when cow-calf producers will be weaning their spring-born calves. Weaning is an excellent time to evaluate your cow herd and decide which cows get to remain your “employees” and which ones need to find a new career. Notice that I referred to the cow as an employee. After all, they work for you. Yes, you have to provide them with the infrastructure to do their job including proper nutrition, health care, facilities, etc. However, if they are not being productive for you, they need to be replaced. Cows and heifers leave operations for a variety of reasons. Ask a room full of cow-calf producers from anywhere in the country for the key reasons to cull a female from the herd. I would feel confident that the reasons would include any or all of the following factors: 1. Age or bad teeth; 2. Pregnancy status (open or aborted); 3. Temperament; 4. Other reproductive problems; 5. Economics (drought, herd reduction, market conditions); 6. Producing poor calves; 7. Physical unsoundness; 8. Udder problem; and 8. Bad eyes. While all of these factors are valid reasons for culling, I suspect that the first three factors listed who be the top reasons for culling in any given year. Let’s discuss those first three factors in a bit more detail. There 5


is no “magic” age when a cow should be culled. Most beef cows are at the peak of their productive life from 4 – 8 years of age. Most start to “show their age” as they approach 10 years of age but there are exceptions. A sound management practice would be to examine the teeth of older cows after fall palpation to determine if they have adequate teeth to digest harvested forages during the winter and graze pasture grasses adequately to maintain body condition and support a calf. The older I become, the less tolerant I am of any temperament issues. I suppose this is a direct result of the fact that I don’t run as fast or heal as quickly as I used to! Animals with poor disposition or aggressive nature are obviously difficult to deal with on an individual basis and can corrupt a larger group of animals. Disposition has become an increasingly important factor as the average age of farmers and cattlemen increases as time moves along. Don’t tolerate the bad actors! Ultimately, the factor that should ultimately sort a female to the keep or cull pen is pregnancy status. While variable costs such as feed have moderated somewhat lately, it is still fairly expensive to maintain a cow on an annual basis. Producers often fail to consider fixed costs such as machinery, buildings, management, and replacement animal expense. We do not have enough space in this article to debate a sample budget, but it is fair to say the annual carrying costs for a beef female can run from $700 to over $1,000 depending on the situation. An open female is not going to generate any income to help pay the bills. Carrying an open female over to the next year or the next breeding season only compounds the accumulation of expenses. In nearly every case, the producer would be better off selling the open female and replacing her with a bred female. This is particularly true of yearling females. If you can’t get a properly developed, healthy yearling heifer bred in a 60 -90 day breeding season, sell her as a heavy feeder calf or finish her out to harvest weight. If she is sub-fertile as a yearling, she will likely have fertility problems as a mature female. I can assure you that the implementation of proper culling practices can be challenging to accomplish. It requires an 6


established breeding and calving season, realistic production goals, and the discipline to carry out your plan. I would be less than honest with you if I said that I have always been completely disciplined with my culling program. It has been my experience that when you start making excuses for a beef female’s poor reproductive performance, it seldom works out well for the owner!

USDA Announces Streamlined Guaranteed Loans and Additional Lender Category for Small-Scale Operators Options Help More Beginning, Small and Urban Producers Gain Access to Credit The U.S. Department of Agriculture (USDA) today announced the availability of a streamlined version of USDA guaranteed loans, which are tailored for smaller scale farms and urban producers. The program, called EZ Guarantee Loans, uses a simplified application process to help beginning, small, underserved and family farmers and ranchers apply for loans of up to $100,000 from USDA-approved lenders to purchase farmland or finance agricultural operations. “Over the past seven years, we have been transforming our loan programs at USDA so that they can be attainable and useful to all kinds and sizes of producers,” said Agriculture Secretary Tom Vilsack. “These EZ Guarantee Loans will help beginning and underserved farmers obtain the capital they need to get their operations off the ground, and they can also be helpful to those who have been farming for some time but need extra help to expand or modernize their operations. USDA’s Farm Service Agency has offices in nearly every county in the country, and we encourage all farmers, including those in urban areas, to stop in and inquire about this program.” USDA today also unveiled a new category of lenders that will join traditional lenders, such as banks and credit unions, in offering 7


USDA EZ Guarantee Loans. Microlenders, which include Community Development Financial Institutions and Rural Rehabilitation Corporations, will be able to offer their customers up to $50,000 of EZ Guaranteed Loans, helping to reach urban areas and underserved producers. Banks, credit unions and other traditional USDA-approved leaners, can offer customers up to $100,000 to help with agricultural operation costs. According to the 2012 Census of Agriculture, 75 percent of all farm operations gross less than $50,000 per year. EZ Guarantee Loans offer low interest rates and terms up to seven years for financing operating expenses and 40 years for financing the purchase of farm real estate. USDA-approved lenders can issue these loans with the Farm Service Agency (FSA) guaranteeing the loan up to 95 percent. USDA is providing a 90-day period for the public to review and comment on program improvements. To review program details, visit www.regulations.gov, reference RIN 0560-AI34 and follow the instructions to submit comments. More than half of all FSA loans go to new farmers and more than a quarter to underserved borrowers. FSA also offers loans of up to $5,000 to young farmers and ranchers though the Youth Loan Program. Loans are made to eligible youth to finance agricultural projects, with almost 9,000 young people now participating. More information about the available types of FSA farm loans can be found at www.fsa.usda.gov/farmloans or by contacting your local FSA office. To find your nearest office location, visit http:// offices.usda.gov. USDA’s EZ Guarantee Loans are an additional tool to support strong local and regional food systems, as well as organic agriculture. Across USDA, the Know Your Farmer, Know Your Food Initiative coordinates the Department's policy, resources, and outreach efforts related to local and regional food systems. Over the past seven years, USDA has helped provide consumers a stronger connection to their food with more than $1 billion in investments to over 40,000 local and regional food businesses and infrastructure projects since 2009. Industry data estimates that U.S. local food sales totaled at least $12 billion in 2014, up 8


from $5 billion in 2008. Learn more about USDA investments connecting producers with consumers and expanding rural economic opportunities online at USDA Results - New Markets, New Opportunities USDA works to strengthen and support American agriculture, an industry that supports one in 11 American jobs, provides American consumers with more than 80 percent of the food we consume, ensures that Americans spend less of their paychecks at the grocery store than most people in other countries, and supports markets for homegrown renewable energy and materials. Since 2009, USDA has provided $5.6 billion in disaster relief to farmers and ranchers; expanded risk management tools with products like Whole Farm Revenue Protection; and helped farm businesses grow with $36 billion in farm credit. The Department has engaged its resources to support a strong next generation of farmers and ranchers by improving access to land and capital; building new markets and market opportunities; and extending new conservation opportunities. USDA has developed new markets for rural-made products, including more than 2,700 biobased products through USDA's BioPreferred program; and invested $64 billion in infrastructure and community facilities to help improve the quality of life in rural America. For more information, visit www.usda.gov/ results.

Frost and Freezes Increase Cyanide Poisoning Risk Cyanide poisoning, more commonly referred to as prussic acid poisoning, can have a very abrupt and deadly effect on ruminant livestock grazing forages and requires careful management as frosts and freezes begin in the area. Plants, such as sorghum, sudangrass, sorghum-sudan hybrids, Johnsongrass, wild cherry, and others, contain compounds that produce free cyanide when these plants are damaged by frost or drought conditions. Grazing these plants when they are producing young shoots (less than 18 inches tall) also increases the risk. Using caution when grazing 9


these forages during times of stress can usually eliminate the possibility of cyanide poisoning in livestock. Waiting for two weeks after a light frost (temperature greater than 28°F) is recommended. For a killing frost, wait until the material is completely dry and brown (usually cyanide dissipates within 72 hours). Grazing at night when a frost is likely is not recommended as high levels of cyanide are produced within hours after frost occurs. Delay feeding silage for six to eight weeks following ensiling of forages in the sorghum family. If cut for hay, allow to dry completely so the cyanide will volatilize prior to baling. For more information, follow this link to the UK publication “Cyanide Poisoning in Ruminants”: http://www2.ca.uky.edu/agc/pubs/ID/ ID220/ID220.pdf.

How to limit damage to high traffic areas High Traffic Area pads are a management option to reduce soil disturbances on any farm that is home to livestock. Heavy use pads are made using geotextile fabric under a 4 to 6 inch base layer of No. 3 or 4 gravel, topped by 2 to 3 inches of dense grade. These pads are about a third of the cost of concrete, but require regular maintenance and the addition of gravel over time. High traffic area pads reduce wheel traffic damage and soil compaction caused by tractors associated with winter feeding. They improve hay feeding efficiency by Geotextile fabric in place after excavareducing 10


trampling losses and lowering the risk for soil erosion. They can also improve health and reduce the risk of animal injury due to excessive mud. Six steps to installing a high traffic use area include: Construction- develop your plan. Excavation- remove topsoil in the desired area until you have stable soil base. Geotextile Fabric - lay heavy duty geotextile fabric to provide subgrade stabilization. Gravel Base Layer (No.3 or 4) – carefully spread an even layer (4 to 6 inches) over the geotextile fabric. This provides stability and space for drainage of water. Dense grade surface layer- spread 2 to 3 inches evenly over the gravel. Compaction- use compaction equipment to create a road-like surface.

Do you have a Kentucky Ag Water Quality Plan? In 1994 the KY Ag Water Quality Act passed requiring all landowners with 10 acres or more involved in agriculture/ silviculture to develop and implement an Ag Water Quality Plan. This plan documents best management practices being followed on the farm. A best management practice could be a number of activities such as rotational grazing, nutrient management, cover crops, and other practices that are sound agricultural practices. There are six areas of the plan to complete based upon your farm including crops, farmstead, forestry, livestock, pesticides & fertilizers, and streams & other waters. As you work through the plan mark best management practices that are currently taking place or that you plan to implement on the farm. Toward the end of the plan there is a page called My Agriculture Water Quality Plan. 11


On this page you will list all of the best management practices you have selected throughout the plan, and fill out corresponding field numbers and dates the practices will be implemented. You should also include plans for improvement. The self-certification page should be filled out and a copy of your plan should be mailed to your local conservation district office. You are required to have an updated copy of your updated KY Ag Water Quality Plan on your farm. You should update your plan at least every two years or if major operations change (i.e. starting a livestock operation, purchase or sale of land, etc.). The KY Ag Water Quality Planning tool was updated in July 2016. You can complete the form using the PDF version found online at http://www.uky.edu/bae/awqp. This version can be saved to your computer and updated at any time, and can easily be emailed to your local Conservation District; you can also fill out a hard copy of the plan by hand. The KY Ag Water Quality Plan is not a voluntary document and is required when applying for agricultural loans and most cost share programs. For more information or if you need assistance with filling out an Ag Water Quality Plan you can visit your local Conservation District or Cooperative Extension Service Office.

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Bullitt/Nelson County FSA Acreage Reporting Dates for 2017 Bullitt/Nelson County USDA Farm Service Agency (FSA) Executive Director Adam P. Haggard announced that producers who file accurate and timely reports for all crops and land uses, including failed acreage can prevent the potential loss of FSA program benefits. Please pay close attention to the acreage reporting dates below and note the change in the reporting date for perennial forage and forage seeding for 2017. “In order to comply with FSA program eligibility requirements, all producers are encouraged to visit the Bardstown FSA office to file an accurate crop certification report by the applicable deadline," said Haggard. The following acreage reporting dates are applicable for Bullitt/Nelson County: November 15, 2016: Perennial Forage (Grass Hay & Pasture) for 2017 year December 15, 2016: Fall Seeded Small Grains (Barley, Oats, Rye, Wheat) for 2017 year January 2, 2017: Honey January 15, 2017: Peaches, Canola July 15, 2017: All other crops and CRP (Alfalfa, Clover, Corn, Soybeans, Tobacco) The following exceptions apply to the above acreage reporting dates: If the crop has not been planted by the above acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed. If a producer acquires additional acreage after the above acreage reporting date, then the acreage must be reported no later than 30 calendars days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office. If a perennial forage crop is reported with the intended use of “cover only,” “green manure,” “left standing,” or “seed” then the acreage must be reported by July 15th. According to Haggard, Noninsured Crop Disaster Assistance Program (NAP) policy holders should note that the acreage reporting date for NAP covered crops is the earlier of the dates listed above or 15 calendar days before grazing or harvesting of the crop begins. For questions regarding crop certification and crop loss reports, please contact the Bardstown FSA office at 502-348-8664.

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Bardstown KY 40004

317 S Third St

Nelson County

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