AG Mag Good as Gold Southwest Iowa
As commodity prices continue to rise, so, too, does the value of farmland in Southwest Iowa
Got cash? It’s been another good harvest and crop prices continue to be high. What does that mean for you? Your outlook: Local farmers look at the 2013 harvest and beyond. ‘Blend Wall’: Ethanol production in the U.S. has leveled off, and no growth is expected. A Publication of Shaw Media
Fall 2013 AG Mag
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Index
AG Mag Southwest Iowa
Publisher Rich Paulsen Advertising Director Craig Mittag Managing Editor Stephani Finley Magazine Editors Larry Lough, Jeff Rogers
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Page Design Jeff Rogers
COVER STORY
Reporters & Photographers Derek Barichello, Sarah Brown, Stephani Finley, David Giuliani, Philip Marruffo, Matt Mencarini, Amy Hansen Ost, Alex T. Paschal, Bailey Poolman, Ty Rushing, and Jake Waddingham Published by Sauk Valley Media 3200 E. Lincolnway Sterling, IL 61081 (641) 782-2141 Articles and advertisements are the property of Sauk Valley Media. No portion of the Southwest Iowa Ag Mag may be reproduced without the written consent of the publisher. Ad content is not the responsibility of Sauk Valley Media. The information in this magazine is believed to be accurate; however, Sauk Valley Media cannot and does not guarantee its accuracy. Sauk Valley Media cannot and will not be held liable for the quality or performance of goods and services provided by advertisers listed in any portion of this magazine.
Land values rising But in Iowa, the price of high-quality land is growing faster than the rest. Cash rent forecast A local expert thinks that cash rents in southwest Iowa are “too high� based on farmers’ input costs.
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Iowans are well-known for their generosity and commitment to the communities they love. All across Iowa, people like you are not only making an impact today, but are also establishing a legacy of giving that will benefit their communities forever. Community foundations are nonprofit organizations that focus on building local philanthropy. You can establish an endowment fund to support the causes you believe in or you can choose to give to an existing fund that matches your charitable interests. When you are ready to explore your charitable giving options, contact your local community foundation. What legacy will you leave?
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Index Reversal of fortunes?
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24
Cattle prices have paled in comparison to row crops in recent years. That may be changing.
With a big harvest underway, prices on corn and soybeans are expected to drop.
Youth is served by FFA Future Farmers of America prepares local students for more than just a career in agriculture. It helps turn them into leaders.
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Get locked in, experts say
Farmers share their outlooks
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27
Southwest Iowa farmers share their expectations for the 2013 harvest and for the year ahead.
From East to Midwest
Hitting a ‘blend wall’?
The story of the Harvest Barn Marketplace in Osceola actually begins in Pennsylvania.
Production of ethanol in the U.S. has leveled off in recent years and actually dropped in 2012.
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Index POET-ry in motion
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Ethanol production facility in Corning is building things the “green” way.
Energy food for thought Southwestern Community College students gain an advantage by learning about energy crops.
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Though times are changing fast in agriculture, the Iowa State Extension has remained consistent and strong during its 100 years.
A site for 4-H groups
42 Evans family still on the farm Edward Evans’ farm in Mercer County, Mo., has been in the family for 123 years.
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Extension shows its endurance
4-H groups in Iowa are setting examples by transitioning from paper copies and forms to using the Internet when enrolling or re-enrolling in the club.
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Southwest Iowa Ag Mag file photo by Phillip Marruffo
STILL A GOOD INVESTMENT
Land values now closely tied to commodity prices BY MATT MENCARINI For Southwest Iowa Ag Mag
M
ark Fassler and his brother Tim were finishing up their soybean harvest in early October. The brothers, who took over farming for their father, work 4,100 acres of soybeans and commercial corn between Sterling and Dixon in northwestern Illinois. This year, the Fasslers had a little more land to farm. In December, they bought 145 acres of farmland “right next” 10 Fall 2013
to the land they already worked, a third of which belongs to the brothers, Fassler said. They rent the rest. “We’re farmers, and that’s what we’re in the business of doing,” he said. “We’ve had a few good years growing corn and beans, and we’re lucky enough to have enough equity to purchase some land.” In August, they bought 117 more acres, also near their current land. “I wish we would’ve bought these up 10 years ago,” Fassler said. “But [we] didn’t have the equity needed.”
Between 2006 and 2013, Illinois farmland more than doubled in price, from an average price of $3,640 an acre to an average of $7,900, according to Reuters, which cited the U.S. Department of Agriculture. Moving into this year, land values in western Illinois and eastern Iowa increased by double digits again, but did so at a slightly lesser amount than in previous years, signaling a tapering off. In Iowa, the gap between high-quality land and medium- and low-quality land is growing, said Kyle Hansen, a real estate agent and auctioneer working out of the Nevada, Iowa, office of Hertz Real Estate Services. CONTINUED ON 11
Alex T. Paschal/For Southwest Iowa Ag Mag
Tim Fassler inspects and greases a combine as he prepares to harvest corn on the farm he and his brother Mark own in northwestern Illinois. The Fasslers have added to their 4,100-acre farm between Sterling and Dixon by buying 145 acres of farmland in December and an additional 117 acres in August. “I wish we would’ve bought these up 10 years ago,” Mark Fassler said. “But [we] didn’t have the equity needed.” CONTINUED FROM 10
Hansen also is the chairman of the Iowa Realtors Land Institute. In its October farmland values survey, it indicated that high-quality land increased this year to $11,661 an acre, up $224 from 6 months earlier. During the same 6 months, medium-quality land increased by $86, to $8,780, and lowquality land increased by $2 an acre, to $5,808. In its 2013 Illinois Land Values and Lease Trends survey, the Illinois Society of Professional Farm Managers and Rural Appraisers found that while supply is down from a year ago, value is “up modestly.” In Illinois, excellent-quality farmland averaged $13,200 on July 1, up 3 percent, Dale Aupperle, of Heartland Ag Group and the ISPFMRA chairman, reported in a summary of the survey. Additionally, good-quality farmland increased by 2.5 percent to an average of $11,200, and fair-quality land increased by 1.9 percent, up to $9,000. “It’s just like the other stocks,” Han-
sen said. “It’s a cycle. It will go up and come down based on the commodity prices and other factors [like world demand for fuel and food]. ... But it still continues to be a cycle. It will come up and go down. Now it’s leveling off and taking a breath to see where we’re going from here.” Hansen said land values in Iowa are now more connected to commodity prices than they have been in the past. Mike Morris is the chief appraiser with 1st Farm Credit and has been based in the Bloomington-Normal office since 2007. He has been appraising since 1999, he said, and handles appraisals in northern Illinois. “I think if we don’t see much change in crop prices, I would call it a stable to slightly softer market,” he said. “If we see some real increase or decrease, that could affect the market. Right now, no one is really anticipating that. “My gut tells me that we’ll still see some strong sales, but we’re not going to see anything that’s higher than [land value] in December, unless we see significant increases in commodity prices.”
On Oct. 11, December corn was $4.3325 a bushel, down 5 cents from the day before, and November soybeans were $12.6675 a bushel, which was 21.25 cents lower than the market’s Oct. 10 close. Despite the falling commodity prices, in a market that’s been described by some experts as volatile, land values have been increasing by double digits for several consecutive years. Bruce Sherrick, an agriculture professor at the University of Illinois, said that rise follows good recent incomes for farmers and continued use of corn for, among other things, renewable energy that keeps demand for land high, but supply low. “Because so little farmland turns over, it’s really, really hard to get a clear picture of what’s going on,” Sherrick said. “Income in northern Illinois is higher than southern Illinois because you grow more. Because of the slow turnover, it’s hard to get a clear picture.” CONTINUED ON 14 AG Mag
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2014 cash rents expected to drop ... or will they? Sarah Brown/For Southwest Iowa Ag Mag
The lowest cash-rent lease agreements are typically established between landowners and farmers with long-standing relationships. This field, owned by Betty Travis, is farmed by her grandson David Travis, both of Creston.
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Crop agent says cash-rent prices locally are ‘too high’ BY SARAH BROWN For Southwest Iowa Ag Mag
As trends point toward some commodity prices going up and the price of grains going down, landowners and farmers are working to negotiate fair, yet profitable, cash rent agreements as they move into 2014. A recent survey released by the University of Illinois predicted this year’s cash-rent rates will likely be lower than 2013. However, for southwest Iowa, crop agent Bruce Travis believes cash rents will remain steady in the new year. Travis is a former farmer, crop adjuster, sales manager, landowner and now crop agent. He said his experience has allowed him to understand what farmers and landowners are experiencing and want to accomplish when they work out cash-rent lease agreements. “I’ve been on all sides of it,� Travis said. “I have a pretty good understanding of where the farmers are at and what goes on.� Determining cash rents in the fall based on future prices makes negotiating cash rents – at times – a gamble. One reason is that farmers are trying to lock in agreements before futures prices of commodities are determined. “The farmers don’t know what the prices are going to be,� Travis said. “Federal crop prices are not established until the first day of March. Almost all farms are rented before then, so they are looking ahead and trying to guess.� In Travis’ opinion, cashrent rates in southwest Iowa,
‘‘
which can range from $100 to more than $300 an acre, are “too high� based on the farmer’s input costs. Bruce Travis “FertilCrop Agent, izers have Travis Crop skyrocketed, Insurance and you obviously know the price of fuel, repairs, machinery – everything has gone up incredibly,� Travis said. “Even if the farmer does sell $7 corn ... and handling enormous amounts of dollars ... his margin is not any higher than back when he had $3 corn.� According to Mark Pearson at Preferred Properties of Iowa in Lenox, cash-rent rates in southwest Iowa are so broad because the values are all over the map. Some factors taken into consideration in determining cash rents are soil quality, location of property, and relationships between landowners and farmers. For example, some landowners cash rent to relatives or people they have longstanding relationships with. In those cases, rent may be lower than for a farmer negotiating cash rents for new land. Travis said about 80 percent of farmland in southwest Iowa is on a cash-rent lease agreement. Based on the various factors involved in negotiating cash rent, particularly relationships, Travis said, not all farmers have the same opportunity to pay the same cash rent.
Even if the farmer does sell $7 corn ... and handling enormous amounts of dollars ... his margin is not any higher than back when he had $3 corn. Bruce Travis, former farmer, crop adjuster, sales manager and landowner
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CONTINUED FROM 11
Todd Slock works for 1st Farm Credit as a real estate appraiser out of the Rock Falls, Ill., office. He’s been an appraiser for 6 years, and previously spent time working near Ottawa, Ill., in LaSalle County. Land sales usually pick up after harvest, when farmers have a better idea of how much they made on the year’s crops, Slock said. By early October, there hadn’t been many listings, which could be the result of commodity prices falling and interest rates “being up slightly.” Hansen said that until the middle of September, the amount of availbale farm land in Iowa was bellow the average, but because of a softening market, landowners are seeing reason to sell now rather than later, especially with medium- and low-quality land. For the most part, high quality land is being held because it has shown greater appreciation, he said. Both pieces of land the
Alex T. Paschal/For Southwest Iowa Ag Mag
Mark Fassler of Sterling, Ill., works on preparing his combine for the harvest season. Mark said he and his brother, Tim, decided to buy more farmland in the past year because “we’ve had a few good years growing corn and beans, and we’re lucky enough to have enough equity to purchase some land.” Fassler brothers bought were from heirs who don’t plan to farm and don’t want to manage the land. For them, like the pension funds or investment groups, the land is a financial investment and not a farming asset. “People look at what their alternative is,” Morris said.
“And they look at a stock market that’s been volatile and CDs that aren’t going to pay as well. ... I think in a lot of cases, people think they can make something off the land, so they hold on to it.” In Iowa, which has buying rules different from Illinois that make it more likely that
farmers will buy land, some investment groups still are purchasing land, but more is going to farmers. “It just shows that people are interested in it,” Hansen said. “Even without a background in farming, they still see long-term income opportunities there. But again, they’re competing with farmers, and farmers are winning.” Between 75 and 80 percent of land purchased in Iowa recently was done so by a farmer within 10 miles, he said. According to the ISPFMRA survey, the “vast majority” of farms in northwest Illinois were purchased by local farmers, and several counties saw sales of more than $12,000 an acre for excellent productivity tracts, and three counties had sales match or exceed $14,000 an acre. “I don’t think there’s a big surprising story in any of this,” Sherrick said from his office at the University of Illinois. “It’s kind of the new normal – higher priced input and higher priced output. ... It adds to the amount of capital [needed] to get into the industry.”
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A TURNING TIDE on the farm?
Local cattle farmers optimistic for markets, start of 2014 BY JAKE WADDINGHAM For Southwest Iowa Ag Mag
Jake Waddingham/For Southwest Iowa Ag Mag
Cattle farming has become less attractive as a career choice for younger farmers and smaller operations as cattle prices have paled in comparison to row crops. The recent drop in corn and soybean prices, however, will benefit cattle farmers as their market prices start to rise.
The recent lower market prices in cattle farming in southwest Iowa have forced younger farmers and small operations to shy away from cattle farming. “In this part of the country, we have what I call two-way ground,� said Chuck Ford, a cattle farmer in rural Orient, Iowa. “You can either dedicate it to hay or pasture, or row crop it.� CONTINUED ON 16
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But for Ford and fellow cattle farmer TJ Ross, also of rural Orient, raising cattle has been a staple in their lives since childhood. Over the past five years, cattle prices have paled in comparison to row crops, causing an unfavorable balance for Chuck Ford farmers like Cattle farmer in Ford and Adair County, Ross. Iowa “Crop prices have been good, yields have generally been good, and cows could not come close to competing with the income you could have got row cropping,� Ford said. Ford has 125 head of cattle and maintains 450 acres each of corn and soybeans. Ford also has land he utilizes for hay and pasture. Ross has a very similar
Jake Waddingham/For Southwest Iowa Ag Mag
A heifer makes its way along the fence line at the Southwestern Community College Agricultural Site in Creston. operation, with 120 head of cattle and similar hay, corn and soybean acerages. Both farmers generally maintain ownership of their herd, usually backgrounding for a while before taking them to a custom feedlot. Despite an unpredictable spring and summer that started with record rainfall and transitioned into drought conditions, local
cattle farmers are optimistic of better market prices and a strong start to 2104. “It [the drought] won’t [be a problem] for us because we will chop enough corn silage to make up for a short hay crop,� Ford said. “We make sure we have enough feed to get through until grass, one way or the other.� Ross added it’s important to wean the calves off the
cows early and practice feeding methods to get the herd through the winter in a safe and costly manner. TJ Ross “You can’t Cattle farmer in starve a Adair County, profit,� Iowa Ross said. “When it gets 30 to 60 days ahead of calving, we make sure they have quality nutrition so they calve OK.� Falling corn prices also favor cattle farmers heading into the winter. “Feeder cattle is good; fats are so-so,� Ford said. “The real thing is the relationship between the cattle prices and the row crop prices is looking more favorable right now.� While the market outlook for 2014 is positive, Ford and Ross agreed the daily labor put into cattle farming is still less convenient than typical row crops.
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Growing leaders in FFA Cassidy Becker: Cattle champ, student, athlete, volunteer BY SARAH BROWN For Southwest Iowa Ag Mag
Contributed photo
14-year-old Cassidy Becker winds down at the 2012 Ringgold County Fair with her champion steer.
Cassidy Becker appears to be your typical high school freshman. But what you don’t know about her will teach you what it takes to become a community leader. Becker, the 14-year-old daughter of Susan and Joe Becker of Diagonal, joined Future Farmers of America this year as a way to continue her path in agriculture. “FFA gives me a boost,” Becker said. “It’s another step I can do that has more to do with the agriculture life.” Becker, who has won multiple awards at local and national livestock shows, grew up on a family farm, where her family raises purebred Angus cattle. CONTINUED ON 19
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Contributed photo
Cassidy Becker, who is a freshman at Diagonal Community School, playfully stares down her heifer Zada, whom she will show next year.
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By continuing her involvement in agriculture through FFA, Becker says, she hopes to help other youths pursue and achieve their goals in agriculture. “I enjoy helping out younger kids,” she said. “I like interacting with them and showing them what is expected.” Becker, a former member of Twin River Tornadoes 4-H club, is mentoring three 4-H students; fifth-grader Austin David of Lenox and fourthand sixth-graders Kerrigan and Cole Mobley, both of Diagonal. As a member of FFA and the Iowa Junior Angus Association, Becker can participate in state and national shows. This year, Becker participated in the Iowa Angus Association State Junior Angus Show in Indianola in June, when her heifer won Reserve Junior Champion Heifer. At the National Junior Angus Show in Kansas City, Mo., Becker placed third and fifth in class with her bred and owned Angus heifers, and
Contributed photo
14-year-old Cassidy Becker of Diagonal displays a plaque at the 2013 Ringgold County Fair, where she won champion and reserve feeder heifer and champion Angus heifer. participated in a quiz bowl and judging contest. “With FFA, I am able to be more involved and eligible to show [cattle] until I am 21,” she said. Outside of the show ring,
Becker is an avid athlete and volunteer. This year, Becker participates in basketball, archery, softball and choir. Additionally, she enjoys giving back to her community through her church and her
4-H group. According to her mother, Becker has raised money for the local food bank by participating in a “crop walk,” painted curbs and exhibition buildings with her 4-H group, collected donations for Toys for Tots Foundation, and adopted a family during the holidays on her own with her brother, Tyler, 20. Becker’s English teacher, Shelly Bentley, at Diagonal Community School said Becker is a standout student. “She is a conscientious student,” Bentley said. “She works up to her abilities and does a good job.” Bentley listed Becker’s involvement in 4-H, FFA, school, church and the community as examples of her exemplary involvement. “She’s a good girl, does what she needs to do and goes above and beyond,” the teacher said. Asked whether she considers herself a role model for her peers, Becker had to think about it. “It’s just what I enjoy,” she said. “I still have a lot to learn.”
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IN THE RIGHT PLACE Contributed photo
The Boyer family of Weldon display Harvest Barn meat items. Pictured (back row, from left) are Kaitlyn, Amy and Jason, and (front row) Konrad and Kacey. The Boyers started the business in 2000 in a restored, 1930s-era barn.
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Boyer family finds success at Harvest Barn Marketplace BY AMY HANSEN For Southwest Iowa Ag Mag
The story of the family-owned Harvest Barn Marketplace located in Osceola doesn’t start in the Midwest. It actually begins in Pennsylvania. Amy and Jason Boyer, the husband-andwife team that owns the Harvest Barn, grew up in Pennsylvania. They knew they wanted to own a farm someday, but the urban sprawl on the East Coast wasn’t ideal to farming. In 1995, the Boyer family moved to Iowa to start a farm near Weldon in south-central Iowa, which led to a cow-calf operation. In 2000, the family branched out to start the Harvest Barn business in a restored, 1930sera barn. “We thought it would make a great spot for a farm-market type business,” Amy said. Amy Hansen/For Southwest Iowa Ag Mag
Harvest Barn Marketplace is at 2721 U.S. Highway 34 in Osceola. In addition to meat, the business offers hand-poured candles, homemade fudge, beef sticks, gourmet Milton Creamery cheeses, fruit salsas, jams, coffees, candles, Iowa wines, and more. And, of course, pumpkins.
Starting out The business started with produce and was open year-round for several years. CONTINUED ON 22
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However, Amy said, more produce stands created more competition in the area, and the family decided to direct market their Limousin beef and Yorkshire pork. Yet, there’s more than meat at the Harvest Barn. The business also offers hand-poured candles, homemade fudge, beef sticks, gourmet Milton Creamery cheeses, fruit salsas, jams, coffees, candies, Iowa wines, fall and holiday décor, and gift baskets. For activities, the business also offers a corn maze, pumpkin patch, and “Fun Farm” for families. The Harvest Barn also is a vendor at the Downtown Des Moines Farmers Market. “That was a great path for us to take in,” Amy said. “It’s gone beyond expectations. We went up there with the idea of being able to direct market our meat, but also, hopefully, advertise our store to the Des Moines area.”
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A few years ago, the Boyer family decided to focus on fall and winter holiday hours for the store to be open. Amy said fall is the biggest business season at the Harvest Barn. As for popular beef products, the Harvest Barn has six flavors of beef sticks. One of the best-selling products is sweet original beef stick. “We sell a lot of raw meat. We do a lot of frozen meat,” Amy said. “But, people like the convenience of a snack stick. In the world we live in, everybody’s on the go. So, that makes a quick snack for people.” During October, the business’s most famous fudge flavor is pumpkin pie. According to Boyer, owning a business in south-central Iowa has its ups and downs. One challenge is the store is in a lower-populated area, but the business can access new and current customers through its Facebook page. However, a lower-populated area does have its
Harvest Barn Recipe: Scarecrow Soup Ingredients: 2 cups water 2 cups potatoes, diced 1/2 cup carrots, diced 1/2 cup celery, diced 1/4 cup onion, chopped 1 tsp. salt 1/4 tsp. pepper 1/4 cup butter 1/4 cup flour 2 cups milk 2 cups cheddar cheese, grated 1 cup ham or bacon, cubed (Harvest Barn ham is recommended) Directions: Combine water, potatoes, carrots, celery, onion, salt and pepper in a large kettle. Boil 10 to 12 minutes. In a small saucepan, make a white sauce with butter and flour, and stir until smooth for about one minute. Slowly add milk, and cook until thickened. Add cheese, stirring until melted. Add white sauce and cubed ham to vegetables that have not been drained. Heat through. This makes six servings. Sprinkle chow mein noodles on top of soup for an optional ingredient.
Amy Hansen/ For Southwest Iowa Ag Mag
The Boyer family’s all-natural Limousin beefsticks are on display at the Harvest Barn Marketplace in Osceola. benefits. “I know, pretty much, our core customers,” Boyer said. “I know them so well, they’re like family.”
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Big harvest should bring prices down
BY DEREK BARICHELLO For Southwest Iowa Ag Mag
The harvest of 2013 has been full of surprises. Farmers planted late because of a wet spring and suffered through a flash drought in July and August, yet many yields are high – so high, in fact, this harvest might rank as one of the top three yields per acre. Corn farmers are seeing monitors on their combines hitting 200 bushels regularly. “They’re pretty proud of their numbers,” said Tim Wells, an agricultural lender at
24 Fall 2013
First Midwest Bank in Moline, Ill. “I had a farmer send me a text of a picture of a monitor at 300, so there’s quite a bit of volume out there coming in. I haven’t talked to a farmer yet who isn’t pleased.” What does that mean for a Midwestern farmer sitting with a good yield? A large amount of corn acreage was planted this season, setting up for a glut of corn on the market, according to the U.S. Department of Agriculture. CONTINUED ON 26
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Many soybean harvests also turned in a better-thanexpected yields. Unfortunately, harvest totals were being reported late because of the government shutdown. As happens with big yields, prices have dropped since reaching a high of $8.49 a bushel last summer and sat at $4.37 as of mid-October – a new low for the year. “Prices may not be where farmers want them to be, but there is a saying in farming, ‘Give me the bushels and I’ll be fine,’� said Ryan Walsh, a commodities broker for AgPerspective in Dixon, Ill. With 200 bushels of corn, and $4 prices, the farmer generally is making money. Be a seller on the futures market, lock the price in (as it’s expected to continue to slide), and be a storer, Walsh says. “Sell corn for delivery next July, store until then, and truck it in,� Walsh said. Because of the October harvest, corn has been late getting to the eleva-
Philip Marruffo/For Southwest Iowa Ag Mag
A combine works a corn field off Crosby Road outside Morrison, Ill. This year’s harvest might rank as one of the top three yields per acre. In the Midwest, a large amount of corn acreage was planted this season, setting up for a glut of corn on the market, according to the U.S. Department of Agriculture. tors, keeping the basis level strong, encouraging storage. Farmers who are putting it in their bins and not selling it face a market risk if they don’t lock it in. Also, once crop insurance floors are set, which are expected to drop off, the farmer won’t have that safety net, either.
The big forward sellers, who set their prices back in December, are cashing in nicely. “They are really happy right now,� Walsh said. Select farmers didn’t sell their 2011 crops, because they didn’t want the income and didn’t want to pay taxes on it. “Take the income; pay the
taxes,� Wells said. While there’s something to putting corn in the bin, farmers need to take care of their liabilities. “Sell enough grain to make sure obligations are taken care of, then from there the market is the market, and you take whatever risks come with that,� Wells said. “That’s up to each individual farm to make their call. Just make sure the bank is taken care of.� For farmers banking cash, now is a good time to leverage investments and plan for the future. That could mean setting up a retirement plan or acquiring land or equipment. “So long as it’s done with a plan,� Wells advised. “Every farm should have a 5- or 10-year plan, and I’ll say that if they don’t have a plan, they’re risking way too much.� With that said, higher yields don’t always translate to higher profits. Prices are expected to decline as the supply grows. “We don’t anticipate an increase in farmers’ incomes,� said Kurt Downs, an agricultural lender for Sauk Valley Bank.
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OUTLOOK?
A Q&A with five Southwest Iowa farmers John LaFratte Age: 58 Location of farm: 1,000 acres of ground east of Winterset in Madison County. He farms corn, beans, beef cows, hay and pasture. What’s your harvest expectation this fall? “I plan to start harvesting tomorrow [Sept. 26], I have an older John combine. It’s a 1992 LaFratte Case IH. My harvest expectations are the corn will be in the 140s [bushels per acre] and beans will be in the 40s. It will be better than last year’s crop, but below average in my 34 years of farming.” What surprised you or was different
about the 2013 growing season? “We’ve had two consecutive dry years, but last year was much worse as there were a lot of bare stocks. The biggest surprise this year was, in May, we got too much rain and it caused the nitrogen to be leached out of the soil. Long story short, losing that much nitrogen malnourished my crop, especially where the water stood for a long period of time.”
Chuck Cleveland Age: 52 Location of farm: Owns or rents 800 acres of farmland near Milo in Warren County. He farms corn and beans. What’s your harvest expectation this fall? “I will start harvesting next week on Oct. 1 or thereabout. I expect the corn to be at or near the 10-year average. I expect the beans to be a little below average, but
overall it appears to be a good yielding season.” What surprised you or was different about the 2013 growing season? “Last winter they were forecasting cooler-than-normal temperatures and average rainfall. So, I’d say the Chuck biggest surprise was Cleveland the lack of moisture we had this year in June and July, especially after we had a year-and-a-half of drought. I thought it would be a much wetter year.” Will you make any changes to your operation in 2014? “Agronomically, everything went as expected in 2013, so I have no plans to make any changes in 2014.” CONTINUED ON 28
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Bart Brummer
Nick Hunter
Bill Evans
Age: 49 Location of farm: About 1,000 acres of farmland west of Indianola in Warren County. He farms corn, beans and cattle. What’s your harvest expectation this fall? “I think corn will continue to surprise people. My five-year average for corn is 171 [bushels per acre]. You Bart Brummer know, I guess I would be cautiously optimistic this year to get 160. I planted all my corn before the snow in May, and I think that will have an advantage over the shorter-seasoned corn planted 20 days later. For beans, I would be satisfied with 45 [bushels per acre].� What surprised you or was different about the 2013 growing season? “The biggest surprise was the variability of the extremes. We had snow in May, followed by excess moisture, cool weather in July and a drought environment in August.�
Age: 53 Location of farm: About 1,500 acres of farmland near Chariton in Lucas County. He farms corn, beans, cattle, hogs and hay. What’s your harvest expectation this fall? “It will be below average for us. We didn’t get the corn planted until late, so it strugNick gled, and our yields Hunter will be below average. We are just looking to hold things together this year, especially with the way the prices have dropped compared to last year. Not to mention, because we planted so late, there will be more moisture in the corn, which will increase harvesting costs.� What surprised you or was different about the 2013 growing season? “The biggest hurdle this year was we went from the wettest spring ever to drought and heat that stressed our crops as much or more than last year.�
Age: 56 Location of farm: 2,000 acres of farmland in the northwest part of Lucas County in Iowa. He farms corn, beans, cattle, hay and pasture. What’s your harvest expectation this fall? “I expect an average Bill to below-average Evans harvest this year, mostly because a wet spring forced late planting. Late planting and an awfully dry summer will hurt yields. I’d say corn will be in the 140s and beans will be somewhere in the 40s.� What surprised you or was different about the 2013 growing season? “Our weather this growing season. In Lucas County, we received 14 inches of snow in May. That’s very unusual. I don’t think I’ve seen that in my 38 years of farming.�
‘‘
’’
The biggest surprise was the variability of the extremes. We had snow in May, followed by excess moisture, cool weather in July and a drought environment in August. Bart Brummer, Indianola-area farmer
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Cleaner animal feeding operations For Southwest Iowa Ag Mag
The Environmental Protection Agency (EPA) has reached an agreement with the Iowa Department of Natural Resources (IDNR) to make changes to Iowa’s Clean Water Act (CWA) permit and compliance program for concentrated animal feeding operations (CAFOs). The agreement includes specific actions the IDNR intends to take to remedy the program and create a timeline for implementation of those actions to ensure clean, healthy water. “Working with states to safeguard Midwestern waters is among EPA’s highest priorities,� said Karl Brooks, EPA regional administrator. “This agreement, developed after extensive public and industry input, commits the IDNR to making needed and achievable improvements to the system that keeps CAFOs compliant with the CWA. Iowans who operate a world-class livestock sector will continue to thrive in a first-rate permitting and inspection program.� EPA considered public comments in its assessment of IDNR’s proposed actions to ensure clean water across the state. Public comments, including feedback from the agricultural community,
were taken into consideration in the drafting of the final agreement. EPA’s investigation of Iowa’s permit and compliance program for CAFOs was carried out in response to a petition for withdrawal of the National Pollutant Discharge Elimination System (NPDES) program authorization from IDNR that was filed in 2007 by the Iowa Citizens for Community Improvement, Sierra Club, and the Environmental Integrity Project. Federal regulations allow interested parties to file these petitions when they are concerned that a state is not meeting the minimum NPDES program requirements. The IDNR has committed to: Change several provisions of Iowa’s CAFO rules so that Iowa state law is consistent with the federal CWA. Conduct a comprehensive survey of all large CAFOs and medium animal feeding operations that don’t have CWA wastewater discharge permits, and identify those that discharge into a waterway and have failed to comply with the permit application or other Iowa requirements. Size thresholds for each species define large and medium operations. For example, operations
with more than 1,000 head of cattle are defined as large and 300 to 999 are defined as medium. Review all relevant available information to evaluate site specific factors that may signal the likelihood of a wastewater discharge to local waterways. This desktop assessment will document baseline conditions at a facility and determine whether an onsite inspection will be conducted. Conduct on-site inspections after agreed upon inspection procedures for all large CAFOs. For medium operations, on-site inspections will be conducted when certain site specific circumstances exist or the desktop assessment determines that an on-site inspection is needed. Inspect all permitted NPDES CAFOs within five years after an agreed upon inspection procedure. Issue timely wastewater discharge permits to all CAFOs determined to discharge to local waterways. Take timely and appropriate enforcement actions when needed, including assessing penalties that ensure violators do not gain competitive advantage from non-compliance.
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BY DAVID GIULIANI For Southwest Iowa Ag Mag
W
hen it comes to ethanol mandates, an Iowa professor says, there are winners and losers. Corn farmers in Iowa and Illinois are the big winners. So is the environment. But livestock producers, who have to pay more for feed because of higher demand for corn – not so much. “Any state that exports corn is going to benefit from an increase in demand for the product,” said Dermot Hayes, an agribusiness professor at Iowa State University.” If we didn’t have a mandate, the price for a bushDermot Hayes el of corn would Agribusiness professor at Iowa be a dollar lower. State University Demand for corn would be less.” In early October, the price of a bushel of corn was $4.43. The United States is the world’s top ethanol producer, with Brazil coming in second. Since 1980, U.S. ethanol production has skyrocketed, increasing from 175 million gallons a year to 13.3 billion gallons – a 76-fold jump. The number of U.S. ethanol plants has grown from 50 in 1999 in 211 this year, with more than 40 in Iowa, which produces more ethanol than any other state. Production of ethanol has leveled off in recent years after seeing huge spikes from 2005 to 2009. It fell slightly in 2012. In August, the Environmental Protection Agency proposed the lowering of its ethanol fuel mandate for 2014 because the demand for gasoline is lower than expected. The decision comes as proposals in Congress are circulating to change the mandate, which was first set in 2007. “There is absolutely no growth expected for the ethanol industry,” said Rich Nelson, a chief strategist with Allendale. “We are hitting the blend wall.” 32 Fall 2013
TOPPING OFF ETHANOL?
Industry might be hitting a ‘blend wall’
Phillip Marruffo/For Southwest Iowa Ag Mag
Don Temple empties the corn from his combine into a chaser bin on his land in western Whiteside County in Illinois. For the past 2 years, Temple’s corn crop has gone to an ADM ethanol plant in Clinton, Iowa. He farms about 500 acres of corn and 150 acres of soybeans. “Before, we had surplus corn. When you have more corn than what is being used, you don’t get paid really well. The ethanol market has been a very good thing for corn growers.”
Anti-ethanol groups say that ethanol consumes about 40 percent of the nation’s crop, but ethanol supporters counter that it’s nearer 28 percent. The U.S. Department of Agriculture Rich Nelson uses the 40 percent Chief strategist number, noting that with Allendale Inc. about that much corn ends up at ethanol plants. But a third of the corn at the plants ends up as byproduct, which is used as feed for livestock, supporters say. Allendale Inc., a McHenry, Ill.-based research company and broker, surveys corn farmers monthly about their expectations. Last year, U.S. corn farmers produced 10.8 billion bushels, a number that is expected to rise to 13.6 billion bushels – a 25 percent increase, according to Allendale’s September numbers. A total of 97.4 million acres are devoted to corn this year – the highest number since 1936, the U.S. Department of Agriculture reports. The increase in demand for ethanol has led to the rising number of acres under corn production, supporters say. Monte Shaw “We grow a lot more Executive corn in the world director of the today than we used Iowa Renewable to because of the Fuels Association demand for renewable energy,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association. “Ethanol is cheaper, ethanol is cleaner, and it’s high-octane,” he said. “The majority of Iowa corn gets processed by ethanol plants. A third of all of that goes back to feed markets in the form of distillers grains.” As for 2014, he said: “I’m optimistic about next year. The economics will drive 2014, but it depends on what the White House and EPA will do.” To meet the federal renewable fuel standard, gasoline companies have blended ethanol into gasoline at 10 percent, known as E10. The ethanol industry wants greater availability of E15 and E85. E85, which requires 85 percent ethanol, can be used in “flexible fuel” cars, while E15 is for cars built in 2001 or later. CONTINUED ON 34 AG Mag
33
Sarah Brown/For Southwest Iowa Ag Mag
The Farmers Cooperative Co. service station in Creston began selling E85 ethanol in August. Here, cars line up for a special sale of the E85 for 85 cents per gallon at the station. On an early October day, E85 was selling for $2.59 a gallon, compared to $3.29 for regular unleaded (E10) gasoline. CONTINUED FROM 33
In Creston, the Farmers Cooperative Co. service station started selling E85 ethanol in August – among more than 2,000 across the country that do. On an early October day, regular unleaded (E10) gasoline sold for $3.29. E15 went for $3.24, E30 for $3.06, and E85 for $2.59. The E85 has been good for business, with the Creston station seeing more customers, said Darin Schlapia, Creston branch manager for the Farmers Cooperative. That’s a story heard from many stations that are selling E85, Shaw said. “The consumers are picking a good chunk of higher ethanol blends,” he said. “This is a very important fight, giving consumers choice at the pump.” Hayes, the agribusiness professor, said that while the prices are cheaper for higher ethanol blends, they are not as efficient. “It’s 75 percent as good,” he said. “The $2.59 [price of E85 at the Creston station] would amount to $3.45. “The density of the energy in E85 is less,” he said. “You’re miles per gallon are less.” 34 Fall 2013
U.S. ethanol production
Number of U.S. ethanol plants
Production Year (in millions of gallons) 2000 ........................................ 1,622 2001 ........................................ 1,765 2002 ........................................ 2,140 2003 ........................................ 2,810 2004 ........................................ 3,404 2005 ........................................ 3,904 2006 ........................................ 4,884 2007 ........................................ 6,521 2008 ........................................ 9,309 2009 ......................................10,938 2010 ......................................13,298 2011 ...................................... 13,948 2012 ......................................13,300
Year ........................................ Plants 2000 .............................................. 54 2001 ............................................. 56 2002 ............................................. 61 2003 ............................................. 68 2004 ............................................. 72 2005 ............................................. 81 2006 ............................................. 95 2007 ........................................... 110 2008 ........................................... 139 2009 ........................................... 170 2010 ........................................... 189 2011 ........................................... 204 2012 ........................................... 209 2013 ........................................... 211
Source: U.S. Energy Information Administration
Source: Renewable Fuels Association
A $175 million initial investment in the Patriot Renewable Fuels ethanol plant near Annawan, Ill., in 2008 has blossomed into a regional economic impact of $1.1 billion some five years later. The plant, along Interstate 80, each year processes millions of bushels of corn from 220,000 truckloads. From that grain, the plant has produced 120 million gallons of ethanol each year.
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The POET Biorefining ethanol production facility in Corning consumes about 23 million bushels of locally grown corn to produce 65 million gallons of ethanol a year.
Actions speak louder than words POET Biorefining builds community, industry the ‘green’ way BY SARAH BROWN For Southwest Iowa Ag Mag
In 1983, corn was selling for $2.50 a bushel and farmers had a tough time making ends meet without government subsidies. In response, the Broin Family started a small ethanol facility on their farm in Wanamingo, Minn. Today, POET Biorefining is the world’s largest ethanol producer.
Turning words into actions According to General Manager Greg Olsen, in 2007 Jeff Broin wanted to come up with a name that described what the company Greg Olsen does, but more important, what it was POET general focused on. manager “A poet takes simple words and builds them into thoughts and ideas,” Olsen said. “We take simple things from nature, like agriculture and corn, and we turn them into ethanol, dried distillers grains, corn oil and other products.” While the scope of its vision has grown, POET’s main focus is reducing U.S. dependency on foreign energy, revitalizing 36 Fall 2013
About POET
POET has defined the art of biorefining. Grown from a single refinery in Scotland, S.D., POET is one of the world’s largest producers of ethanol and other biorefined products.
global agriculture, and providing a cleaner, affordable alternative to fossil fuels.
Local benefits
Corning, Iowa, was chosen as the location for a new plant primarily because of its proximity to a railroad, natural gas and water. CONTINUED ON 38
Grassley receives award for work to develop ethanol For Southwest Iowa Ag Mag
Sen. Chuck Grassley of Iowa received the 2013 Fueling Growth Award Sept. 10 from Growth Energy for his work to develop clean-burning, domestically produced ethanol. The award acknowledges that Grassley’s “hard work in Congress has made a significant contribution to the viability of the biofuels industry,” according to Growth Energy. “I’m honored to receive this award today,” Grassley said. “I’ve long been a supporter of renewable fuels, starting with ethanol. Alternative energy sources reduce our dependence on foreign oil, increase national security and create jobs for American workers in addition to extending our fuel supply and lowering prices at the pump.” The award is given annually by Growth Energy to members of Congress who support ethanol advancement and work to craft consistent and fair federal policy for the industry.
Grassley, a Republican, has worked for many years to promote favorable federal policies in order to establish renewable fuels as an alternative to finite fossil fuels. Grassley advocates for U.S. Sen. the maintenance of Chuck Grassley the Renewable Fuel Received 2013 Standard. In August Fueling Growth 2013, Grassley, along Award with Sen. Amy Klobuchar, D-Minn., urged the Federal Trade Commission to investigate possible anti-competitive practices by oil companies that may be limiting the competitiveness of renewable fuels. Nationally, the U.S. Department of Energy estimates that for every one billion gallons of ethanol produced, 10,000 to 20,000 jobs are added to the
economy. In 2011, more than 400,000 jobs were created and supported by the ethanol industry, and production of ethanol contributed $42.4 billion to the national gross domestic product, according to the Energy Department. The Iowa Renewable Fuels Association reported that with 41 ethanol plants and 3.7 billion gallons produced in 2012, Iowa is the largest producer of ethanol in the country. According to the Iowa Corn Growers Association, Iowa’s ethanol industry supports 55,000 jobs and accounts for $5.4 billion of the state’s total economy. Comprising many American ethanol producers and other organizations within the industry, Growth Energy represents producers and promotes ethanol production to “fuel America in ways that achieve energy independence, improve economic well-being and create a healthier environment for all Americans today.”
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“The one thing that was of concern was water,” Olsen said. According to Olsen, despite the Lake Icaria watershed project that was implemented to draw industry to the area, POET didn’t want to use so much of the county’s water supply. So, an idea came about to use effluent water from the city of Corning’s wastewater treatment facility to help offset some of the cost to the city. Olsen said wastewater used to be treated by a treatment facility and flow into a river. Now, the water is partially treated and flows into POET’s Corning plant. “By doing that, we are saving 40 percent of the water we would have used from Lake Icaria,” Olsen said. “It’s a little more expensive for us to do that, but it helps the city out.”
Products POET, a biorefinery, processes corn and makes ethanol, dried distillers grains, and corn oil.
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“So, you are getting two kinds of fuel out of that same kernel of corn – ethanol and biodeisel,” Olsen said. Inside the 730,000-gallon fermentor at Corning’s POET plant, up to 20 percent becomes ethanol. The remainder goes through a distillation process to pull off the ethanol, the water is removed, and what remains is a product called “wet cake,” which some farmers feed to their stock or is further dried into distillers grain. “It’s a very nutritional product because of its high protein content,” Olsen said.
The future “This year, we are going to send $300 billion to places that don’t even like us,” Olsen said. “We can make it right here in the United States. That’s $300 billion into our economy. Imagine the kind of jobs it would create. “Our position is, we don’t expect the country to go 100 percent ethanol, but put it out there on an equal setting and let the consumer decide what they want to use.”
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Iowa farmers talk GMO
H
undreds of protesters, many who have never been on an Iowa farm, headed to our state recently to protest progress in farming. They don’t believe in genetically modified crops, and no amount of peer-reviewed science or speeches from Nobel laureates will convince them otherwise. Just as they have the right to voice their opinions and be heard, the Iowa men and women who spend years in the field growing your food also hope you will hear their stories, and let common sense prevail. That’s because for decades, these thousands of Iowa farmers have seen what progress in farming can do. Paul Vaassen has been growing corn and beans on his Dubuque County
farm since 1962. Although he’ll proudly admit to being “old fashioned,� he says there are some things that nostalgia can’t cure, like hunger. “I don’t ‘think there’s any doubt in my mind that the genetic improvements that seed companies have developed have given us the opportunity to see greater yields, despite what Mother Nature can dish out,� Vaassen said. “We can’t forget that feeding people is really what this is all about. “Last year, for example, we were very dry, and even though yields were not up to what we considered ‘normal’, they were much better than, say, 10 to 15 years ago when we had the same drought conditions but didn’t have these great seeds that were more resistant to drought or pests. “Years ago we used planters with seeds in one box and insecticide in
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another, which meant we were using a lot more insecticide. I’m happy that old planter sits idle on my farm now, because our GMO seeds help us defeat pests like rootworm and corn borer,� says Vaassen. Roger Zylstra, a longtime corn, soybeans and hog farmer from Jasper County, has seen a lot of changes, too. If he can be more productive and more sustainable, he can also keep farming in the family, and that’s why he favors GMO crops. “The reality is we’re trying to build and grow for the future,� Zylstra said. “My youngest son just came back full time to the farm. I work hard to build a sustainable farm for his return and only innovation helps us do that.� CONTINUED ON 41
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Innovation has brought incredible progress to Iowa farms. Between 1980 and 2010, U.S. farmers nearly doubled corn production, yet thanks to better seeds, better equipment and conservation practices, are using less fertilizer than they put on the ground back when Zylstra and Vaassen first got started farming all those years ago. According to data from the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS), farmers grew 6.64 billion bushels of corn using 3.9 pounds of nutrients (nitrogen, phosphorus and potassium) for each bushel in 1980. Just a couple years ago, that yield busted the bins at 12.45 billion bushels, using 1.6 pounds of nutrients per bushel produced. I’m no math genius, but by any assessment, that’s more than an 87 percent increase. How many other industries can claim that? When you look at the science, the
‘‘
‘‘
Of course GMO is safe. Of course it’s all about feeding more people. But the bottom line for me is that, as a family farmer with young kids, I’m not going to put anything in the ground that’s not safe for us, or our environment. We’re eating this food, too. Colin Johnson, Wapello County farmer
numbers, the sustainability that GM crops bring and meet the men and women who grow your food, it’s hard to swallow the hysteria that the “anti” crowd is selling. Young farmers just getting started believe it’s the “disconnect” that folks may have today with farmers; they just haven’t met one. Colin Johnson is a young family farmer from Wapello County who grows corn, soybeans and hay. He says the farmers growing food today have more in common with folks asking the questions than many realize. Knowledge-
Years ago we used planters with seeds in one box and insecticide in another, which meant we were using a lot more insecticide. I’m happy that old planter sits idle on my farm now, because our GMO seeds help us defeat pests like rootworm and corn borer. Paul Vaassen, Dubuque County farmer
’’
’’
seeking is a good thing, so long as both sides are sought out. “Of course GMO is safe,” Johnson said. “Of course it’s all about feeding more people. But the bottom line for me is that, as a family farmer with young kids, I’m not going to put anything in the ground that’s not safe for us, or our environment. We’re eating this food, too.” Progress has brought us safer cars, cellphone coverage in the country, the Internet, and countless improvements in the fields of health care and fitness. Progress also has brought consumers more choices at the grocery store, and that includes healthier choices from GMO food: fortified with calcium, vitamin A, and other vitamins and minerals. Providing choices is what keeps farmers moving forward. “The farming practices we’ve used, the no-till and everything, it’s a great advance from where we were,” Zylstra said. “I have no doubt we will continue to move forward. That’s what we do.”
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SWCC students gain advantage by studying energy crops BY STEPHANI FINLEY For Southwest Iowa Ag Mag
E
nergy crops may be the wave of the future for Midwest farmers. Southwestern Community College in Creston has been growing perennial grasses through its agriculture program since 2010.
Erika Blair, agriculture instructor at SWCC, said energy crops are an added educational component to the college’s ag programs. “The advantage is, instead of just being corn and cattle, expanding an agronomy field and looking more into the different parts of the agriculture industry,� Blair said. “The biofuels and the biomass crops are obviously something that’s very up right now in interest.� CONTINUED ON 43
In the photo This plot of perennial grasses at Southwestern Community College is being used for education and reseach of biomass crops. The tall grases in the back are Miscanthus Ă— giganteus, which along with native switch grasses are grown as an energy crop. (Photo by Stephani Finley for Southwest Iowa Ag Mag)
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Danielle Wilson, research assistant with the Department of Agriculture at Iowa State University, demonstrates the height of the perennial grass Miscanthus Ă— giganteus at a plot site at the university. CONTINUED FROM 42
According to Emily Heaton, assistant professor in biomass crop production at Iowa State University’s Department of Agronomy, the SWCC site was chosen because it is a visible demonstration and teaching site, “perfect for getting the word out about perennial bioenergy crops in southwest Iowa.� Heaton’s interest in perennial grasses was inherited from her father, John D. Caveny of Illinois.
The beginning Caveny is president of Environmentally Correct Concepts Inc. of Monticello, Ill. In 2002, ECCI, University of Illinois Department of Crop
Sciences and Dynegy Midwest Generation of Baldwin, Ill., received three grants from the state of Illinois, which funded renewableenergy research programs to assess the feasibility of growing Miscanthus x giganteus. Miscanthus, a cool-season relative of sugar cane, was planted on Caveny Farm in May 2002. At the end of a successful three-year research period, remaining Miscanthus reverted to Caveny Farm. In 2008, Caveny Farm and the Sun City, Fla., company Speedling Inc. came to an agreement whereby Speedling propagates and sells plugs of the Illinois clone of Miscanthus originating from Caveny Farm. CONTINUED ON 44
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Stephani Finley/For Southwest Iowa Ag Mag
The Southwestern Community College agronomy class students and instructor Erika Blair (far right) installed this sign in front of the perennial grass crops to help educate the public about biomass crops. CONTINUED FROM 43
Benefits Blair has used the large plot of perennial grasses south of the ag building to educate students and the public about the benefits of energy crops. “Any kind of exposure to the students of something different other than what they are used to is a good educational purpose,� she said. “From my standpoint here at SWCC, any time you can educate the students a little bit more, give them hands-on experience with a different situation, that’s the most valuable part for me.� Heaton said in addition to their educational value, energy crops have many uses. “Generally speaking, our goal with energy crops in Iowa is to use them in a multifunctional way,� Heaton said. “That is, they can provide not only a crop to sell for farmers, but also a lot of environmental benefit. Plants capture CO2 from the atmosphere every year, and through photosynthesis,
turn it into plant biomass. “That biomass can then be burned, like coal for electricity, or converted into petroleum replacements like gasoline or diesel. It could also be turned into ethanol.�
Research
Emily Heaton Assistant professor in biomass crop production at Iowa State University
Danelle Wilson, ISU research associate, said the SWCC program also is being used by ISU for reseach. “We have been using them to teach SWCC students about energy crops and working with students to collect some research data about plant growth and yield,� Wilson said. “We have had ISU Extension workshops at SWCC and use the plots to show people what they can expect on their own farms. “These grasses are not like your lawn
or pasture – they can get pretty big. Sometimes people just need to walk into one of the plots to really experience the difference.â€? Wilson said perennial grasses that have leading potential in Iowa are switchgrass (Panicum virgatum L.) John Caveny President of and Miscanthus (MisEnvironmentally canthus Ă— giganteus), Correct Concepts as well as prairie Inc. of cordgrass (Spartina Monticello, Ill. pectinata), Big bluestem (Andropogon gerardii) and Indiangrass (Sorghastrum nutans). Switchgrass has been studied across the Midwest for several decades, mainly because it is native to the area and was once on the tall grass prairie. The Department of Energy and others have labeled it as a “modelâ€? bioenergy crop. CONTINUED ON 46
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CONTINUED FROM 44
Crop of the future Wilson said energy crops can be an advantage to Midwest farmers. “Midwestern farmers should adopt perennial grasses as part of their ‘portfolio’ of crops to diversify their cropping systems,� she said. “Diversification of cropping systems will impact environmental, social and economic changes, including improved water and soil, increased microbial activity, increased soil carbon, more jobs and markets when bioenergy companies become more widespread, among many other things. “Diversification across the landscape will provide many ecosystem services while producing biomass from the land. Although the biomass crops may not be as high yielding as the traditional and more conventional corn system, the benefits in the long term will outweigh those in the short term.� Blair said she has found the perennial grasses to be hardy during weather extremes this year. “From what I’ve seen out here the past two years, in a drought situation it’s grown well and still has high yield,� she said. “I think it’s more tolerant to weather conditions, more so than maybe corn and soybeans.�
John Caveny inspects a crop of miscanthus at his farm in Illinois. Blair said perennial grass also will grow in areas where corn and soybeans won’t. “It does well, like on hillsides, where
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corn won’t grow, or terrace areas,� Blair said. “If they can still use that in a valuable way and receive some profit for it, I think it has a place.�
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ALL IN THE FAMILY Evans farm in Mercer County, Mo., dates to 1890 BY BAILEY POOLMAN For Southwest Iowa Ag Mag
Bailey Poolman/For Southwest Iowa Ag Mag
Edward Evans owns 215 acres of farmland west of Princeton, Mo., in Mercer County. Evans, his son Jim, and grandson Chad farm and raise animals on the land.
Edward Evans’ farm has been in the family for years – 123, that is. Evans’ century farm, located in Mercer County, Mo., was bought by his grandparents Ed and Lucy Klinginsmith in 1890. They grew corn, hay and oats and raised hogs and beef cattle on the more than 400-acre property. Limestone found on the land had been used in caves and wells around the Missouri county. “He had quite a few cattle,” Evans, 74, said. “He had quite a herd of cattle at one time. Of course, he had some horses. Back then, they farmed with horses.” CONTINUED ON 48
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Contributed photo
Ed and Lucy Klinginsmith bought property in 1890, and that same property is now owned by their grandson Edward Evans. CONTINUED FROM 47
In 1910, the Klinginsmiths built a house on the property, where the family lived until it was struck by lightning and destroyed by fire in 1993. A mobile home was built in its place. A barn also was built in the 1890s, and stood until wind destroyed it in 2007. A new barn was built in its place using materials from the original building. The Klinginsmiths had five daughters, and two of them inherited the farm in 1945. Half of the farm was sold before Evans and his wife, Willalee, gained ownership in 1980. Pointing at land across the road from his farm, Evans said, “There was about
Bailey Poolman/For Southwest Iowa Ag Mag
Edward Evans stands in front of the barn that was built in 2007 after the original barn was destroyed by wind. Evans inherited the farmland in 1980, and he, his son and grandson now work the land. 400 acres altogether, counting that, but when the old folks died they divided it up among family.� Evans said 200 acres was sold. After Evans’ aunts sold half of the property, 218 acres were left. Evans gave three acres to his grandson and his family to live on, and he maintains the rest.
“I raise cattle, beef cattle, and hay, some soybeans,� Evans said. “I married pretty young, and farmed my whole life.� Today, Evans’ son and grandson farm the property. They have 50 acres of crop, and raise animals on the remaining 165 acres.
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Extension serves Iowa counties even through changing times BY STEPHANI FINLEY For Southwest Iowa Ag Mag
For more than 100 years, Iowa State Extension has offered services to educate and extend knowledge to strengthen Iowa’s economy and citizens’ quality of life. Those programs and services have been virtually unchanged throughout its history. “There hasn’t been any consolidations in the state,� said Carol LaFaver, region 18 director. “There are still 100 offices in the state of Iowa.� Region 18 covers eight counties in southwest Iowa – Adair, Adams, Cass, Clarke, Decatur, Ringgold, Taylor and
Union counties. Pottowatamie County is split with two offices. In 2009, Iowa State Extension saw the most changes in its history, but even those had little impact on the services offered. “The changes were mostly internal in the system,� LaFaver said. “Before, counties would send money to the university, and the university would administer payrolls, HR, a whole slew of things. They would cover the benefits and all of that.� Each county has a tax levy, based on property valuations, that goes to sup-
In the photo Deb Hall (with microphone) is honored during the Adair County Fair as the 2013 Adair County inductee into the Iowa 4-H Hall of Fame for her service as a 4-H’er, 4-H leader and nearly 20 years as director of Adair County Extension. (Photo by Stephani Finley for Southwest Iowa Ag Mag)
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port the local Extension office. When Iowa State University administration realized it could no longer continue to fund the administration of the extension offices, it implemented some changes. Carol “So what they did, LaFaver is they returned the money to the counties,� LaFaver said. “So now you’re going to manage your own money. That’s why staffing is different than it used to be, but how we do business is still the same. “We’re still doing programming. We’re still doing outreach to families, youth, farmers, the community in general.� CONTINUED ON 52
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Each county has a nine-member council, chosen in the general election, to make decisions at the local level. “Now what happens, the nine-member council along with staff will look at their staffing pattern and say, ‘We need this staff to do youth programming’ or ‘families programming.’ They make those decisions,” LaFaver said. “They manage their money locally.” Beginning in 2012, and over the next several years, county extension offices throughout Iowa will celebrate their 100year milestones of Angie organized extension Engles work and the hiring of their first county agents. Adair County Extension in Greenfield will celebrate its 100th anniversary in 2016. With staffing changes that took place in 2009, that office now has two fulltime employees and three part-time. Office Manger Angela Engles and 4-H coordinator Donna Wallace are the fulltime employees. Engles said the Adair County staff
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Ty Rushing/For Southwest Iowa Ag Mag
Iowa State University Extension and Outreach Region 8 Director Rich Wrage works in his Marshall County office. Wrage oversees ISU Extension’s operations in Boone, Hardin, Marshall and Story counties. changed slightly with the 2009 restructuring. “We readjusted who’s responsible for what,” she said. “We kept the same staff right after 2009 restructuring. Deb Hall [former education director] had been a great leader for years, and she helped
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in a different role to get us through that transition until she was ready to retire. “We really have a great team here.” LaFaver said Extension is dedicated to continuing its goal of providing services to local communities well into the future.
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Revenue Protection Beyond Crop Insurance With harvest well underway throughout the country many producers are asking the question, “Should I sell my grain now or store it?”
At the time of this writing, December corn futures are trading roughly $2 per bushel lower than during the same period last year, and November soybean futures are about 50 cents lower. Nobody likes to sell grain in a falling market and this couldn’t be more evident than in 2013. Farmers have reportedly sold a record-low amount of grain ahead of harvest. Following several years of record land and grain prices, huge crop insurance guarantees, and low interest rates the best grain marketing strategy has been to wait and sell at harvest. That strategy hasn’t worked this year… so now what? Crop insurance has become the most widely used (and misused) risk management tool by farmers. The most common policy is the Revenue Protection (RP) plan, which allows a grower to buy “guaranteed revenue” based on their average production and the higher of spring or harvest price.* The grower receives an indemnity payment if actual revenue falls below the guarantee level. If used correctly, this type of policy can help growers take advantage of higher prices before knowing their actual production and can prevent growers from having to sell grain durincentivizes farmers to hold off on sales until the policy expires. Currently, crop insurance policies have expired. A common mistake when policies expire is to store grain and wait for higher prices. One must realize that after policy expiration there is no more “guarantee”. If you decide to store grain and wait for higher prices, you are speculating. Instead, consider putting a price protection package together that will reestablish guaranteed revenue for your crop. There are several ways of accomplishing this, but the following examples demonstrate two concepts that every producer storing grain should understand: 1. If the market is paying a premium at harvest (prices are higher than in deferred months), NEVER store your grain. Storing grain in this environment means you are willing to pay the market to store your own grain! If you believe prices will increase, look to re-own with futures or buy a call in the deferred months with the extra money you will make from selling grain now (cheaper than nearby prices and gives you a lot of time). 2. When deferred prices are higher than current prices it means the market is paying you to store grain. In order to properly capitalize on this you should forward contract the grain when you decide to store in order to lock in those higher prices. If you believe current prices are “too low”, use some of the extra money made by storing the crop to buy a call option. Generally speaking, crop insurance is the most powerful and effective risk management tool on the market. However, utilizing a few additional tools alongside your insurance policy will enable you to realize its full potential. * Unless the grower elects for a harvest price exclusion policy (RP-HPE).
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Iowa Soybean Association leaders assume roles with national export group For Southwest Iowa Ag Mag
Iowa Soybean Association (ISA) CEO Kirk Leeds was elected vice chairman of the U.S. Soybean Export Council (USSEC) during the group’s annual meeting in September at the 2013 U.S. Soy Global Trade Exchange conference in Davenport. Laura Foell of Schaller, who also is involved with the United Soybean Board (USB), was elected USSEC secretary. John Heisdorffer of Keota and USB Chairman Jim Stillman of Emmetsburg also serve on the USSEC board. All three are ISA board members and soybean farmers. “Iowa is the leading producer of soybeans in the country and, understanding that nearly 60 percent of our crop is exported, anything we can do to help expedite
the sale of soybeans for Iowa farmers is important,” said Leeds, who is serving his third year on the USSEC board. “Iowa farmers are great spokespeople for the soybean industry. The soybean customers around the world recognize the Iowa brand, and this reinforces to customers that our state and nation are quality suppliers.” Foell looks forward to her new role on the national export council. “I think it will help Iowa soybean farmers because we are in the heart of soybean country,” Foell said. “There are many markets for our soybeans, … and we want to make sure those markets are open.” To learn more about ISA, go to www.iasoybeans. com.
Iowa Soybean Association CEO Kirk Leeds has been elected vice chairman of the U.S. Soybean Export Council.
We salute our area farmers and agriculture industry for their contributions to our local, national and international communities. Their efforts plant the seeds for prosperity, nourishing our bodies as well as our economy.
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Iowa 4-H groups logged in BY AMY HANSEN OST For Southwest Iowa Ag Mag
Iowa’s 4-H organizations are leading the way when it comes to day-to-day technology. Specifically, 4-H groups in Iowa are setting an examples from transitioning to paper copies and forms to using the Internet when enrolling or reenrolling in the club. A couple of years ago, the state’s 4-H organizations started using a system or database called “4-H Online.” “At that time, many other states were watching Iowa because they thought this was really neat,” said Jennifer Pollard with Iowa State University Extension Office in Clarke County. “So, we were kind of one of the pilot states in seeing 4-H Online get off the ground.”
How it works The way the database works is, instead of youths or parents filling out all the hardcopy enrollment forms, they can use their own email address, choose their own password for the system and
put their information in online. Club leaders may also use 4-H Online. The online forms ask general information questions, but also what the youth is specifically interested in. Each year, 4-H youths have to reenroll, and instead of families filling out the same information on paper year after year, 4-H Online saves it all. “You don’t have to recreate the wheel or start over every time,” Pollard said.
“It saves all of that.” 4-H Online allows families to log in during evening hours when extension offices are typically closed. The website is also helpful when it comes to entering animals in county fairs. “It’s an amazing database,” Pollard said, “and I’ve heard great comments, and other states are still watching Iowa to see what we do and how we work with families. It’s a very neat program.”
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School lunches with a twist New beef recipes on school menus get students’ approval BY NANCY DEGNER Iowa Beef Industry Council
After participating in a pilot program at schools around the country, many students and school food service directors agree: The Rock and Roll Beef Wrap is delicious and nutritious. The same goes for Spy Thai Beef, Sweet Potato Beef Mash-up, Wrangler’s Beef Chili and Sweet ’n Sloppy Joes. “Awesome” was a common compliment from youngsters who tastetested and named five all-new ground beef recipes created by the Beef Checkoff Program for school lunches. School food service directors noted the “homemade” flavor of the recipes and the use of economical, widely available ingredients. Another selling point for school staff? The meals pair the timeless appeal of ground beef with “generous’ amounts of vegetables that young people might not otherwise consume.
Rock and Roll Beef Wraps Total Recipe Time: 35 to 45 minutes Makes 4 servings INGREDIENTS 1 pound Ground Beef (93% lean or leaner) 1 cup water 1/3 cup uncooked quinoa 2 tablespoons dry ranch dressing mix 1/4 teaspoon black pepper 2 cups packaged broccoli or coleslaw mix 4 medium whole grain or spinach tortillas (7 to 8-inch diameter) Toppings (optional): Apple slices, red bell pepper strips, cucumber slices, carrot slices, sliced almonds or chow mein noodles INSTRUCTIONS Heat large nonstick skillet over medium heat until hot. Add Ground Beef; cook 8 to 10 minutes, breaking into 1/2-inch crumbles and stirring occasionally. Remove drippings. Stir in water, quinoa, ranch dressing mix and pepper; bring to a boil. Reduce heat; cover and simmer 10 to 15 minutes or until quinoa is tender. Stir in slaw; cook, uncovered, 3 to 5 minutes or until slaw is crisp-tender, stirring occasionally. Divide beef mixture evenly among tortillas; garnish with toppings, as desired. Fold over sides of tortillas and roll up to enclose filling.
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Sweet Potato Beef Mash-Ups
Sweet ’n Sloppy Joes
Total Recipe Time: 30 to 35 minutes Makes 4 servings INGREDIENTS 1 pound Ground Beef (93% lean or leaner) 1/2 cup water, divided 4 teaspoons taco seasoning mix, divided 1 large sweet potato, cut into 1/2-inch cubes 1 medium yellow onion, chopped 1 tablespoon vegetable oil 1/4 cup Greek or regular nonfat yogurt 1/2 to 1 teaspoon hot pepper sauce Chopped fresh cilantro Small whole wheat flour tortillas (6 to 7-inch diameter), warmed (optional) INSTRUCTIONS Heat large nonstick skillet over medium heat until hot. Add Ground Beef; cook 8 to 10 minutes, breaking into 1/2-inch crumbles and stirring occasionally. Remove drippings. Stir in 1/4 cup water and 2 teaspoons taco seasoning; cook 3 minutes. Remove from skillet; keep warm. Combine sweet potatoes, onion, remaining 1/4 cup water and 2 teaspoons taco seasoning in same skillet. Bring water to a boil. Reduce heat; cover and simmer 10 minutes, stirring once. Remove lid; stir in oil; continue cooking, uncovered, 4 to 6 minutes or until potatoes are tender and begin to brown, stirring frequently. Return beef mixture to skillet; continue to cook 2 to 4 minutes or until heated through, stirring occasionally. Meanwhile, combine yogurt and hot sauce, as desired, in small bowl. Evenly divide beef mixture into tortillas, if desired. Garnish with cilantro and serve with yogurt mixture, as desired.
Total Recipe Time: 35 to 40 minutes Makes 4 servings INGREDIENTS 1 pound Ground Beef (93% lean or leaner) 1 cup diced bell peppers (red, green, yellow or orange) 1/2 cup chopped onion 1 can (8 ounces) tomato sauce 1/2 cup water 1/2 cup dark or golden raisins 2 teaspoons ancho chile powder 1 teaspoon dried oregano leaves 4 whole wheat hamburger buns, split Toppings (optional): Chopped mango, chopped jalapeĂąo, chopped tomato, chopped fresh cilantro, sliced green onion, shredded reduced-fat Cheddar cheese INSTRUCTIONS Heat large nonstick skillet over medium heat until hot. Add Ground Beef, bell pepper and onion; cook 8 to 10 minutes, breaking beef into 3/4-inch crumbles and stirring occasionally. Remove drippings. Stir in tomato sauce, water, raisins, ancho chili powder and oregano; bring to a boil. Reduce heat; simmer, uncovered, 15 to 18 minutes or until sauce thickens slightly, stirring occasionally. Evenly divide beef mixture on bottom half of each bun. Garnish with toppings, as desired; close sandwiches.
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Wrangler’s Beef Chili
“The Iowa Beef Industry Council has shared the new recipes with school food service directors across the state,” said Scott Niess, of Osage, chairman of the Iowa Beef Industry Council. “The recipes were triple-tested in the checkoff’s test kitchen. The national beef checkoff and state beef councils in Colorado, Kansas, Kentucky, Missouri and Washington then worked with local school districts to field-test the recipes and gather feedback from students and foodservice directors.” Perhaps most important, the recipes help meet new government nutrition guidelines for the national school breakfast/lunch program. The five beef recipes meet all school nutrition guidelines for fat, calories and sodium and help incorporate a variety of food groups, such as meat, vegetables and grains, into meals. The recipes all contain 10 essential nutrients, including fiber, which was recognized as a nutrition concern in the 2010 Dietary Guidelines for Americans. “We are providing the quantity recipes through our food service website, www. beeffoodservice.com, to help ensure beef remains on school lunch menus as a nutritious, delicious meal option for our children,” Niess said. Family-size recipes are available at www.beefitswhatsfordinner.com.
Total Recipe Time: 40 to 45 minutes Makes 4 servings INGREDIENTS 1 pound Ground Beef (93% lean or leaner) 1/2 cup chopped onion 1 can (15 ounces) pinto beans, drained and rinsed 2 cans (8 ounces) no-salt added or regular tomato sauce 1 cup frozen corn 1 cup water 2 teaspoons chili powder 2 teaspoons ground cumin 1 teaspoon garlic powder 1 teaspoon dried oregano leaves 1/4 teaspoon pepper Hot cooked whole wheat macaroni (optional) Toppings (optional): Crushed baked tortilla chips, chopped green or regular onion, chopped tomato, chopped bell pepper, chopped fresh cilantro, reduced-fat shredded Cheddar cheese, nonfat Greek yogurt INSTRUCTIONS Heat large nonstick skillet over medium heat until hot. Add Ground Beef and onions; cook 8 to 10 minutes, breaking beef into 3/4-inch crumbles and stirring occasionally. Remove drippings. Stir in beans, tomato sauce, corn, water, spices and herbs. Bring to a boil. Reduce heat; cover and simmer 20 to 25 minutes, stirring occasionally. Serve over baked potatoes, if desired. Garnish with toppings, as desired. Cincinnati-Style Beef Chili: Stir in 1 teaspoon cinnamon with other seasonings in Step 2. Serve over hot cooked whole wheat spaghetti. Moroccan-Style Beef Chili: Substitute 1 cup frozen peas for corn. Stir in 1 teaspoons pumpkin pie spice with other seasonings in Step 2. Serve over whole hot cooked whole wheat couscous or brown rice.
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Pesticides present pitfalls for bees
any of you look at bees and classify them as an insect. You’re not wrong. But bees are not a harmful insect; they are a beneficial insect. Honey bees are just a class of livestock that man has put to good use for his benefit. They take plant pollen and use it is as a food source; they also take nectar from plants and create honey. Herein lies the dilemma: Man, in his quest to produce high yields of corn and soybeans, has basically ignored the plight of the honey bee and other pollinators! Most beehives are kept in rural areas; the bees in those hives can be exposed to pesticides. Insecticides are far and away most harmful to pollinator populations. Fungicides and additives also can have a negative impact on pollinators, while herbicides seldom have an adverse effect, since the site of action is found in plants and not insects. Seed
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DAVID FELTES Director, Whiteside County (Ill.) Soil and Water Conservation District Board treatments can be harmful to pollinators, too. The most important tool in protecting pollinators from pesticide exposure is communication between growers, beekeepers, neighbors and agriculture professionals. Communication would allow beekeepers to take the appropriate action to protect their hives from pesticide exposure. Corn and soybeans are the prevalent crops grown in this region and, in most cases, receive multiple pesticide applications. Some growers use a burn down
application and some don’t. Some use a post-emergent application and some use an application of a fungicide, which, in most instances, includes an insecticide. Corn gets two to three applications of pesticides per year. Soybeans usually get the same. So what can you, as an individual crop producer and pesticide applicator, do to improve the chances for honey bees and other pollinators to survive and thrive? Understand the growth and development phases of the crop you are growing. Pollination and flowering are two phases that are most attractive to pollinators. Many pollinators use corn pollen as a food source. Pollinators are attracted to soybeans, too, and soybeans, although they are a self-pollinating crop, can benefit from pollinators – that is, the crop could produce higher yields. CONTINUED ON 61
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What’s the bottom line? – Beekeepers should register their apiary locations at www.driftwatch.org, while applicators should check the site for hives within a mile of the planned pesticide application. – Treat when necessary, but not for prophylactic reasons. How many of you would get a quadruple bypass just in case you would have a heart problem? – Time applications so they will have a minimal impact on pollinators visiting the field (late in the evening or early in the morning). Mid-morning through afternoon is the worst time to apply. Warm temperatures early and late into the day will allow pollinators to fly earlier and later in the day. Do not spray when it is windy to avoid drift problems. Choose pesticides and formulations that are not highly toxic to bees. In other words, read the label or material safety data sheet (MSDS). Check field borders and other areas within the field for blooming plants that honey bees and other pollinators might be foraging on and follow label directions if a pesticide application is necessary. In my apiary, I have 24 hives and the extrapolated dollar value on a per acre basis (if I would have an acre of produc-
Photo submitted by David Feltes
ing hives) they produced in honey last year was $72,000. How many acres of corn or soybeans would you have to grow to produce that same dollar value? How much is a hive of bees worth? The figure I’ve heard most often is $2,000. So, how much is your stock cow, steer, dairy cow or brood sow worth? Some more or some less than a good hive of bees. The point is that honey bees are valuable, produce a viable commodity, and need protection from the willy nilly spraying they are exposed to. So, as a pesticide applicator, rural or urban, the ball is in your park. Know
where the beehives are in the area where you are applying a pesticide and notify the beekeeper at least 24 hours in advance so he can take proper precautions. The decisions you make as to what and when to apply can have either a positive or negative impact. Remember, communication is the most important tool available. David Feltes is a director on the Whiteside County (Ill.) Soil and Water Conservation District Board and a beekeeper. He also is retired from the University of Illinois Extension, where he was an integrated pest management educator.
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