AG Mag
Southwest Iowa
!
Water, Please
Their land thirsty for moisture, farmers mull options as planting nears Numbers game: Why data now drives many decisions on today’s farms Cliff Notes: How the ‘fiscal cliff’ deal helps and hurts you and your neighbors Wind shift: Opposition to wind farms is now more organized, and more vocal
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Message from the Publisher
Southwest Iowa Ag Mg stands out because of its local focus
ucts and services area agriculture professionals offer. Those of us working to produce this magazine are especially grateful for our advertisers’ support, It is with great excitement that we introduce the inaufor without it, producing this publicagural issue of Southwest Iowa Ag Mag, a publication tion would not be possible. focused on the success of Iowa farmers and the agriculture The second issue of the Ag Mag will industry. The magazine will feature best practices, discuss publish in August. It will examine how trends, and provide a forum for profitable ideas. Rich Paulsen the growing season is progressing and Publisher We intend to create a top-flight agriculture magazine take a read on how local growers plan that will stand out compared to all the rest. The way we to market their grain and livestock. It intended to make it stand out is to make it the most locally will also feature vacation opportunities and profile area focused agriculture publication in the market, and we are farmers’ favorite trips. confident we have done that! The final issue of the year will publish in November, with Inside this issue you will be able to read about the local a two-pronged focus: It will examine how area growers impact last year’s dry weather had on our area and how fared in 2013, and then delve into planning for next year. other growers and agriculture professionals are moving We hope you enjoy this issue, and we hope you have a forward. You will find profiles of local growers as well as great 2013. information on yield statistics, best practices, tax and govRegards, ernment policies, and more. You might even see names and photographs of people you know. There are even some tasty recipes for those who not only grow food, but who enjoy eating it, too. Aside from the editorial content, this edition is packed Rich Paulsen, publisher full of locally based advertising about the valuable prod-
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Index
AG Mag Southwest Iowa
Publisher Rich Paulsen Advertising Director Craig Mittag Managing Editor Stephani Finley Magazine Editors Larry Lough, Kathleen Schultz
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Page Design Jeff Rogers
COVER STORY
Reporters & Photographers Derek Barichello, Sarah Brown, Pam Eggemeier, Bob Eschliman, David Giuliani, Amy Hansen, Kayla Heimerman, Philip Marruffo, Alex T. Paschal, Bailey Poolman, and Kyle Wilson Published by Sauk Valley Media 3200 E. Lincolnway Sterling, IL 61081 815-625-3600 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.
Feeling the Heat Farmers fear another year of drought could be devastating if commodity prices fall. All in the family The O’Hair family in Van Wert is in its fifth generation of being in the farming business.
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Index Uncertainty, still, about Farm Bill
20
30
No one’s happy that the lawmakers in Washington, once again, have kicked the can down the road on the Farm Bill.
Legislative priorities
Potential tax burdens lifted The “fiscal cliff” deal in the nation’s capital brought some blessings to farmers in Iowa and across the country.
Blowback on wind energy
21
Iowa Farm Bureau sets its agenda for lawmakers in Des Moines.
34
More and more often, people living near proposed wind farms are presenting opposition.
35
Good talks, great food
27
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Index Making a career out of FFA
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AG Mag
13
heat
Feeling the
Threat of drought through 2013 has farmers worried By SARAH BROWN and KAYLA HEIMERMAN For Southwest Iowa Ag Mag
T
ony Allen, who farms 500 acres of corn and soybeans and breeds livestock in Union County, worries what 2013 will bring after his yields dropped about 40 percent in 2012. Allen waited for the ground to dry last spring before he planted. Although needed rain didn’t come, the subsoil had enough moisture to get crops through the season without complete devastation. “But now we’ve used all of that,” Allen said. “There is no moisture in the ground.”
14 Spring 2013
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History tells us not to anticipate the situation will correct completely during this year. It tells us to anticipate the problem will continue. Elwynn Taylor, a professor of agronomy at Iowa State University
The intense 2012 drought parched field crops throughout much of the country, including the top corn-producing states in the Midwest, and delivered a punishing blow to yields across the nation. Federal crop insurance, coupled with strong corn prices, made up for some of the loss. But the threat of another dry growing season – with agricultural land thirsty for water after fall rains and early winter snows failed to fully recharge soil moisture – has farmers worried.
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Allen, who owns more than 300 cattle, is particularly concerned about his livestock. “If it doesn’t rain, livestock will go away,” he predicted. “You could not buy enough hay to keep cows going. “We saw this happen in Texas and Oklahoma [last year],” Allen said. “People will start selling off their cattle because of high corn prices and not enough water.”
Continued on 154
4Continued from 14
How bad was the 2012 drought? The 2012 drought was the most intense and widespread drought to grip the United States since 1988. It was comparable in severity to the droughts of the mid-1950s, said Elwynn Taylor, a professor of agronomy at Iowa State University and a climatologist for Iowa State University Extension. More than 50 percent of the country was experiencing some level of drought conditions as of early January, according to the U.S. Drought Monitor. The 2012 drought crippled corn production after six consecutive years of above-average corn yield, Taylor said. In 2010, when the drought started, output for the first time in six years fell below the average. And in 2011, it fell even further. “And in 2012, we were not only below the trend, we were in extreme drought,” Taylor said. “So, we had three consecutive years below the trend, and we’re likely moving into two more years.” Withered crops limped through the summer on subsoil moisture deep into the ground, Taylor said. But most of that subsoil moisture is gone and has yet to be replaced – a special concern now that the ground has frozen. “We did not have a full recharge over [the past] winter,” Taylor said. “Some places had a normal recharge, but half didn’t.” Irrigated crops did well, said Bob Rosengren, who grows corn and soybeans in Lee and Whiteside counties, Ill. “Anything under water did survive and was a decent crop,” Rosengren said. “We kind of take it out of Mother Nature’s hands because we can make it rain.” But according to the 2007 Census of Agriculture, the most recent survey available, only 2.09 percent of harvested cropland in Illinois is irrigated. In Iowa, that figure is even smaller: 0.79 percent. Those numbers could increase in a 2012 survey that is being compiled. Most growers slogged through the drought and made up for their losses with crop insurance, said Emily Pratt, a crop insurance specialist for 1st Farm Credit Services in Rock Falls, Ill.
‘‘
Sarah Brown/Southwest Iowa Ag Mag
Cattle close in on Tony Allen of Diagonal as he takes feed to the herd. Allen is concerned what a continued drought through 2013 could mean for the more than 300 cattle he owns. “If it doesn’t rain, livestock will go away,” Allen predicted. “You could not buy enough hay to keep cows going.” “Those with adequate crop insurance were still able to conduct business as usual and even make plans for the coming year,” Pratt said. “The insurance made them feel secure in knowing that if they did have a loss, then some or all of their investment would be covered.”
Soil moisture still a concern Most of the country remains in a drought, according to the U.S. Drought Monitor. A three-month drought outlook, released Jan. 3 from the Climate Prediction Center of the National Oceanic and Atmospheric Association, showed easing drought in northern Illinois, continued drought with some improvement in northwestern Illinois and eastern Iowa, and persistent or intensified drought throughout much of the rest of the country. Soil moisture and water levels are at near-record lows – so much so that barge traffic on the Mississippi River has halted – and are not likely to fully
Those with adequate crop insurance were still able to conduct business as usual and even make plans for the coming year. Emily Pratt, crop insurance specialist in Rock Falls, Ill.
’’
recover by spring, said John Eise, a meteorologist for the Central Region of the National Weather Service. “Even if we received normal precipitation this winter, we would still have a deficit in everything from topsoil moisture to water levels [in ponds, streams and rivers],” Eise said. “Unless we have some good, wet snows that can percolate into the soil and recharge the soil moisture, we’re going to have problems going into the spring.” Corn and soybeans survived the drought on subsoil moisture. Rooting conditions last year were near ideal, and observed corn and soybean roots were 8 to 9 feet in many places, Taylor said. That deep rooting provided sufficient water to produce decent crop yields but resulted in moisture-depleted soil. Many locations now require 16 to 18 inches of precipitation – because each foot of soil has a capacity for 2 inches of plant-available water – from the past October to May to adequately replenish subsoil moisture, Taylor said. “That is not likely,” he said. “Judging from normal precipitation and history, it’s not likely the soil will be fully recharged.” Years of scant moisture, or drought years, often lead to an immediately subsequent year of below-average precipitation. Continued on 174
AG Mag
15
FAMILY FIRST T
Five generations of O’Hairs find success diversifying their farming business
BY AMY HANSEN For Southwest Iowa Ag Mag
he O’Hair family is in its fifth generation of being in the farming business. The family runs O’Hair Family Farms in Van Wert, which encompasses about 3,000 acres in a 25-mile radius covering parts of Missouri and Decatur and Clarke counties in Iowa. Their farm is nearly into Wayne County. Jim O’Hair, 63, is the fourth-generation farmer. His great-grandfather arrived in 1902 and, 10 years later, bought land to farm. When he got out of college, he bought land from his grandmother. He’s now been farming more than 40 years. CONTINUED ON 19
Jim O’Hair (center) poses with members of his family in front of his combine and Caterpillar farm machinery. Pictured (from left) are Jesse O’Hair, holding Lane O’Hair, 6, Jim holding Kiera O’Hair, 5, and Patrick O’Hair, holding Liam O’Hair, 1.
Photo submitted
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CONTINUED FROM 18 “We’ve just added to it and added to it over the years to where we’re at now,” said Jim, the current patriarch of the family. He and his wife, Phyllis, have four children. Their daughter Sara and son Patrick are directly involved in the family business. Patrick’s wife, Mackenzie, also helps out. Jim and Phyllis have a daughter in California who owns farming land with her siblings. They also have a son who isn’t involved in farming; he works for Casey’s in Ankeny, Iowa. Phyllis said she married into the O’Hair farming business, but she also grew up on a farm. Still, hers was a smaller farm, so she said she had a lot to learn at first. “It’s challenging, but enjoyable,” she said. “I don’t have to get up and go to work every day away from home.”
Coming home When Sara was growing up, she said, she didn’t like farming and wanted to get out of the area as soon as possible. “After I graduated college, I was out of here,” Sara said. “Then, as you get older, family becomes more important to you, and you get tired of working for someone else. You are able to come home, and they were gracious enough to let us come in and start learning how to do this, and start working. It’s perfect.” The O’Hairs grow corn and soybeans. They also have other business ventures, including automotive sales, real estate, custom tilling, farm drainage, and mini-storage. “The bulk of our bread and butter, so to speak, is farming corn and soybeans,” Sara said.
Sharing expertise Since it is a family business, each family member has an area of expertise. Patrick deals with the technology of
Photo submitted
Pictured is Phyllis O’Hair on her tractor. According to her daughter, Sara, Phyllis loves to ride this tractor. the new equipment, such as computers and GPS. “He knows how to talk to techies and keep it running,” Jim said. Patrick is also an all-around combine operator and sprayer. “We share those operations,” Jim said. Phyllis and Sara are in charge of the bookwork, and, Jim said, “chasing after everybody.”
Making it work As for working with his family on a daily basis, Patrick said the key to success is to have open lines of communication. “There’s always disagreements between everything, but luckily, we’re a pretty tight family,” he said. “Our main goal is to have open communication. I mean,
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that’s what makes everything work.” The family tries to have a main business meeting at least once a month, but they keep in touch with each other every day. In winter, their main work is dealing with the bookwork, records, cash flow, taxes and getting ready for spring. There is a potential for a sixth-generation for the O’Hair family business. Jim and Phyllis have two grandsons and a granddaughter who enjoy being around farming, and if they take over the business someday, that would be all right with Jim. They already love to help out and have fun getting dirty around the farm and machinery, and “we try to force as many farm toys on them as we can,” Patrick joked.
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AG Mag
19
Kicking the Can Down the Road, Again
Photo illustration by Alex T. Paschal for Southwest Iowa Ag Mag
Uncertainty for farmers remains after another extension of the Farm Bill by Congress
20 Spring 2013
I
By Pam Eggemeier For Southwest Iowa Ag Mag
n a business where uncertainty is a constant occupational hazard, the recent one-year extension of the 2008 Farm Bill does little to alleviate farmers’ fears of the unknown. The Farm Bill extension was part of the last-minute “fiscal cliff” deal that was brokered in Congress on New Year’s Day. While more than 35 programs set to expire will now be authorized to operate at last year’s spending levels, farm advocates and legislators say they are disappointed in the inability of Congress to give farmers the security of a new five-year deal that would make it easier for them to plan. “Uncertainty is the big thing,” said Adam
Nielsen, director of national legislation and policy development for the Illinois Farm Bureau. “Farmers are hoping that we’re not on a treadmill of Farm Bill extensions.” Newly sworn-in 16th District Congressman Adam Kinzinger of Illinois said the uncertainty that lingers with the extension has been the biggest agricultural concern voiced by farmers in his district. “Without knowing which insurance programs, or possible new regulations may be placed upon their industry, farmers are left vulnerable when deciding which crops, feed, or investments they should make for years to come,” Kinzinger said. continued on 224
Farm Bureau states its top priorities for 2013 BY BOB ESCHLIMAN For Southwest Iowa Ag Mag
The Iowa General Assembly reconvened Jan. 14 for its annual 110-day session with a number of new legislative priorities. But the eyes of many farmers and rural landowners will be looking to see how legislators respond to calls from the Iowa Farm Bureau Federation to protect the state’s land owners and control the growth of property taxes. Republican and Democratic leaders in both the House and the Senate have stated that property taxes – particularly commercial property taxes – will be a major focus of the 2013 legislative agenda. IFBF president Craig Hill, in an interview in the most recent issue of the Farm Bureau Spokesman, said property taxes had increased sharply. “Our continued efforts to protect property taxpayers are essential because, over the last decade, property
taxes have increased by over $2 billion, an increase of over 75 percent,” he said. “Farm Bureau members believe the primary objective of property tax reform should be to reduce the property tax burCraig Hill: den on all classes of President of the property.” Iowa Farm Bureau Another major issue Federation will be how the state dips into a nearly $800 million budget surplus from the last budget year. Hill said IFBF members support using a draw-down of those funds for one-time expenses, such as property tax relief and infrastructure needs, but opposes any new long-term spending commitments from the surplus. Other IFBF legislative priorities in 2013 will include: • Advancing conservation efforts and
At the Statehouse
addressing water quality issues, • Protecting Iowa’s road and bridge infrastructure, • Positioning the state as the leader in bioscience research and development, and • Increasing legislative oversight in the rule-making processes of state boards and commissions. Hill also said in the interview that IFBF would work to establish budget growth limitations for local governments as a way to further limit property tax increases. “Reasonable limits are needed so property tax collections do not continue to outpace the economy and family wages,” he said. “In addition, protecting the productivity formula for property taxes on farmland will be a key focus, ensuring that agricultural land is assessed on its ability to produce revenue, rather than on the current market value, especially in this period of sharply higher land prices.”
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CONTINUED FROM 20 Kinzinger said that the impact of last year’s drought and historically slow economic growth make a five-year Farm Bill even more important. Nielsen believes the extension is doubly frustrating because much of the heavy lifting for a new bill had been done, and a cash-strapped federal government stood to save a substantial amount of money in farm subsidy concessions. A bill passed by the Senate included savings of about $23 billion over 10 years. Another version in the House contained $35 billion in cuts, but a finished product never made it out of the House. “Negotiations were taking place in December 2011,” Nielsen said. “We basically had the bill then, but it failed in the supercommittee. Now we’re back to square one.” Randy Faber of Sublette, Ill., was one of 14 state farmers to participate in the Illinois Farm Bureau’s Leaders in Washington trip in mid-September. The delegation had the opportunity to talk to legislative leaders one-on-one about the need for a new Farm Bill and participate in a rally at the Capitol. While Faber said it was a productive trip, his excitement was tempered by a healthy dose of reality. “There was a lot of enthusiasm at the rally, and I was kind of surprised by the
David Rauch/Southwest Iowa Ag Mag
Randy Faber, who farms near Sublette in Lee County, Ill., said that while he “was kind of surprised by the optimism of congressmen” during an Illinois Farm Bureau Leaders visit with lawmakers in Washington in mid-September, he never expected a new Farm Bill to be passed by the end of 2012. optimism by the congressmen,” Faber said. “I just personally never did think we would get this done by the end of the year.” Faber said he knew that the proposed cuts to the food stamp program would be a huge roadblock to getting a deal out of the House. The House version of the bill called for $16.5 billion in cuts,
over a 10-year period, to the Supplemental Nutrition and Assistance Program (SNAP), which makes up more than 75 percent of the Farm Bill budget. Democrats feared that the cuts would eliminate food stamps for up to three million Americans. CONTINUED ON 23
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Negotiations were taking place in December 2011. We basically had the bill then, but it failed in the supercommittee. Now we’re back to square one.
He also understood the gravity of the fiscal cliff negotiations, which forced the Farm Bill to take a back seat. “There’s a $16 trillion debt,” Faber said. “You can’t keep kicking the can down the road when no one can tell you when you’re going to hit the wall. All you have to do it look at what’s happened in Greece and the rest of Europe.” Congress and the ag community agree that the Farm Bill is outdated and the extension merely delays reform efforts. Most heavily debated in the reform conversation is the funding for safety net programs, which are now extended in their current form for another year. As crop prices have gone up during the period covered by the 2008 Farm Bill, crop insurance has clearly emerged as the risk management tool of choice in the Midwest. Direct payments have become the poster child of an antiquated Farm Bill. The main objective for lobbyists in the next bill will be to protect the crop insurance programs that now cost the federal government about $9 billion a year, Nielsen said. “We’re not pushing for direct payments, but now we have them for another year,” he said.
Adam Nielsen, director of national legislation and policy development for the Illinois Farm Bureau
CONTINUED ON 24
AP photo
Congressman Adam Kinzinger, a Republican who now serves the 16th District in Illinois, said “farmers are left vulnerable” in decisions about crops, feed and investments because of the uncertainty about the future of the Farm Bill.
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4Continued from 23 “It’s a great example of how this bill is out of step with the times. Farm Bureau is focused on preserving and enhancing crop insurance, but this is a symptom of a process that broke down.” The ag sector booked record profits of $122 billion in 2012, fueling the argument to cut subsidies. Many farmers seem to have accepted the likelihood that direct payments are living on borrowed time. Some would even like to see them disappear. Jim Schielein, a grain producer in Lee and Ogle counties in northern Illinois, served 10 years on the IFB board. He says he was in favor of doing away with direct payments in the 2008 Farm Bill. “We could see it coming,” he said. “Direct payments had their time and place, but they became untenable. With prices recovering as they have, why are we getting these dollars?” Scott Irwin, professor of agriculture and consumer economics at University of
24 Spring 2013
Alex T. Pascal/Southwest Iowa Ag Mag
Jim Schielein, a grain producer in Lee and Ogle counties in northern Illinois, favored doing away with direct payments in the 2008 Farm Bill. He said, “With prices recovering as they have, why are we getting these dollars?” Many farmers seem to have accepted the likelihood that direct payments are living on borrowed time. Illinois, agrees that fixed direct supports are “dead on arrival,” but agriculture lobbyists want the next Farm Bill to include a different, more modern sort of safety net system in exchange. “They are proposing replacement programs that
work in conjunction with crop insurance and vary with market conditions,” he said. “I think the biggest concern for farmers this year is how robust the safety net will be in the next Farm Bill. But making concessions during good farm times can be a slippery slope, especially now that the Farm Bill is likely to be drawn up while the debt ceiling deadline and appropriations bill expiration both loom on March 27. Jerry Quintin, director of the Lee County Farm Service Agency, says the next Farm Bill must not “throw out the baby with the bathwater” just because this year was the first time in 30 years that prices have exceeded production costs. There will always be numerous factors that farmers can’t control. “We can’t forget the essence of these programs,” he said. “We have to remember the cyclical nature of farming and what we needed to do to get to the good times. We had $5 corn in ’96-’97, and then $1.40 corn in ’98-’99. Lee County received about $25 million in drought insurance in 1988-’89. We lost a lot of farmers that year, but the insurance saved us.” Newly elected U.S. Rep. Cheri Bustos of the 17th District in northwest Illinois, who
received an appointment to the House Agriculture Committee, will work with the committee to craft the next Farm Bill. She said she will listen closely to her constituents to gauge their priorities. She said she was disappointed that a long-term bill wasn’t completed in the last Congress, but she understands that reconciling subsidies with the current budgetary crisis will be challenging. “The lack of certainty puts farmers in Illinois in a difficult position when it comes to planning, and it also impacts investment in agriculture,” Bustos said. “We need to have subsidy reform, but also need to remember that farmers are at the mercy of Mother Nature. They do need some kind of safety net in place, such as a strong crop insurance program.” Bustos said that the need for a long-term bill was the dominant ag issue discussed while she was on the campaign trail. She believes there will be an important teaching aspect to her committee work on the Farm Bill. “It is important to educate Congress about how a Farm Bill is beneficial to everyone – not just those in agricultural districts – because of the impact it has on things like food prices and food safety,” Bustos said.
Bigdished Breakfast out with a side of laughs
Sarah Brown/Southwest Iowa Ag Mag
Retired farmer Donny Pottinger (right) visits with his colleagues over coffee at the sale barn cafe as they await an 11 a.m. sale at Creston Livestock Auction. “I’ve been coming here for 30 to 40 years, and after all that time, the coffee is still hot,” Pottinger says.
BY SARAH BROWN For Southwest Iowa Ag Mag
A
s you crunch down on a spoonful of corn flakes, do you ever long for a hearty breakfast? The type of feast they might serve on a farm? To feast like a farmer, there is no need to raise your own chickens or cattle. Instead, pull up a chair at the sale barn cafe in the Creston Livestock Auction. That is, if you can find a seat in this
packed cafe. Creston Livestock Auction was established in the late 1930s, and Tom and Leisa Frey of Creston have owned the business since 1999. They sell all classes of cattle, including feeders, bred heifers, bred cows and slaughter animals. Regular sales are held every Friday, with hay auctions at 9 a.m. and cattle sale at 11 a.m. CONTINUED ON 26
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With a chuckle, Pottinger adds the coffee is sometimes good, but mostly bad. Either way, he’s is a loyal patron for the friendly and attentive staff, but mostly for the company of his friends. Sherri Baker, the sale barn cafe cook, said farmers have been coming for so long, they have all earned nicknames. Some are based on a farmer’s regular orders or appearance, and others have earned a nickname based on their personalities. “That’s ‘Beef Cake’ over there,” Baker said. “I don’t know exactly how he got that name.” The staff admits they can’t always remember some of the regulars’ names because they have been referenced by their nicknames for so long. “We are always joking with them,” Baker said. “And they joke back. They enjoy it.”
The menu Sarah Brown/Southwest Iowa Ag Mag
The crowd at Creston Livestock Auction bid on cattle at a special end-of-the-year cattle sale Dec. 28. CONTINUED FROM 25 You can’t miss the bright-red barn on North Cherry Street. The full parking lot indicates either a sale is taking place or local farmers are gathering to
exchange stories over a cup of steaming coffee. “I’ve been coming here for 30 to 40 years,” said Donny Pottinger, a retired farmer. “And after all that time, the coffee is still hot.”
Whether you are in search of a meal to fuel your body for a long day of labor or just enough to leave you rubbing your tummy, the sale barn cafe has a menu chock full of hot dishes to curb any appetite. Breakfast favorites include golden french toast, fluffy pancakes, and biscuits and gravy CONTINUED ON 27
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CONTINUED FROM 26 Baker’s specialty is the Honeymoon, a scrambled combination of eggs, sausage, and hash browns. A full lunch menu boasts an array of grilled delights, including burgers, tenderloin, fish and grilled cheese sandwiches. And don’t forget to leave room for dessert. The dessert menu, which will satisfy any sweet tooth, includes seasonal pies by the slice or a la mode, decadent chocolate or strawberry sundaes, and candy bars. Marion Gildsig reminisced on the unfortunate dining experience of Dean Hoffman. “Dean isn’t here anymore,” Gildsig said. “But he’d come in every Friday morning and order gooseberry pie.” One morning, Dean complained about his gooseberry pie, insisting something was wrong with it. The cook explained she had made it the same way every day, but because Dean insisted, she retreated to the kitchen to check the can of gooseberries. “It turned out, she had opened a can of peas,” Marion said. “She had made pea pie!” The table exploded in laughter. “We’re still alive because we haven’t eaten the food,” Pottinger said with a chuckle. Although no farmer could pinpoint a menu favorite, they agreed that they
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Retired farmer Donny Pottinger has been a regular at Creston Livestock Auction’s sale barn cafe for more than 30 years. “I guess you can say it’s become a habit,” Pottinger said. enjoyed the comfort-style, big breakfast. A vote among a table of seven farmers on a recent morning revealed scrambled eggs, biscuits and bacon are the most popular eats. Pottinger, who jokes about not eating the food, actually enjoys eggs and bacon. “Sometimes I’ll have biscuits and gravy, just to mix it up.”
When to visit While no reservations are necessary, Friday is sale day and the busiest of the week. The sale barn cafe is open 6 a.m. to 1:30 p.m. Monday through Friday. If an auction runs late, sometimes as late as 8 p.m., the cafe will remain open until the close of the sale. Go to www.crestonlivestock.com for more information.
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BY PAM EGGEMEIER For Southwest Iowa Ag Mag
ith taxes taking center stage late last year in the looming fiscal cliff negotiations, farmers and their tax planners were hoping for the best but preparing for the worst as 2012 came to a close. While all the uncertainty over ag-related tax issues made planning difficult, the deal reached late on New Year’s Day not only included a one-year extension of the 2008 Farm Bill provisions, but some big tax victories that farm lobbyists had pushed hard for in 2012. ■■■ According to CPA John Berge, the three most important tax changes set for 2012 were a sizable decrease in the Section 179 expense deduction, the expiration of the bonus depreciation allowance, and the anticipation of higher estate taxes. Now none of those changes will come to fruition this year. “This allows farmers to have more options for 2013 and gives them more flexibility,” Burge said. Section 179 and the bonus depreciation allowance, often used in tandem, provide write-offs for equipment purchases that can help to shelter income during good years. CONTINUED ON 32 Photo illustration by Alex T. Paschal/Southwest Iowa Ag Mag
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CONTINUED FROM 31 Before the fiscal cliff deal, the dollar limit for the Section 179 expense deduction was to drop from $500,000 to $139,000 for 2012, and all the way back to $25,000 for 2013. The 100 percent bonus depreciation allowance applies to qualifying property with a longer shelf life acquired after Sept. 8, 2010. The 50 percent bonus depreciation allowance applies to qualifying property acquired after Dec. 31, 2007. Both bonus depreciation allowances were to expire in 2012. Now the maximum Section 179 deduction remains at $500,000 for 2012 and 2013. The 50 percent bonus depreciation allowance is extended through 2013. The ceiling for equipment eligibility also has been lifted to $2 million, instead of the $560,000 asset maximum that had triggered a phase-out of Section 179. Berge said the extension of those write-offs at their current rates is important in stimulating small business and agriculture. “Farming is a very capital-intensive business,” he said. “It takes a lot of capital to be successful. We saw a lot of equipment being purchased in 2011, and fewer capital purchases in 2012 because of the possibility of the tax changes. When the tax burden is less, it’s a real incentive to invest in new technology.”
Farmers receive ‘blessing’ in deal Because of the extension, heirs will Farmers, especially family farmers, pay estate taxes only received a “blessing” Dec. 31, farmon a farm’s value ing consultant Ray Powell says. over $5.12 million. Powell has helped southwest Iowa “There is a very farmers with their business decisions dramatic difference and taxes for the past three decades between $5.12 milthrough his business, Positive Farm- lion and $1 million, Ray ing Assistance, in Creston. especially because Powell That great blessing, he said, came land values are high in the “fiscal cliff” deal, whereby the right now and sevgovernment permanently extended eral farms are above $1 million in the federal law on the estate tax. value,” Powell said. If that law had not been extended, “This was a great blessing for farmthose who inherit or buy the farm ers and really is an amazing help would have had to pay a 55 percent to many family farmers. They can inheritance tax on any value above $1 breathe a little easier now that the million. government has made its decision.” BY KYLE WILSON For Southwest Iowa Ag Mag
Illinois Farm Bureau members made federal tax issues a big priority in 2012, and lobbyists turned up the heat on Congress by putting out a legislative action request from Nov. 30 to Dec. 7. The result was close to 4,000 participants banding together in support of retaining current estate tax and capital gains provisions, and extensions of the Section 179 deduction, as well as exten-
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sions of the renewable fuels and energy tax credits. The estate tax keeps the personal exemption at $5 million for an individual and $10 million for couples. The exemption will be adjusted for inflation, making it $5.12 million in 2012 and about $5.25 million in 2013. CONTINUED ON 33
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Farmer: Turbine lease ‘a good deal’ By SARAH BROWN For Southwest Iowa Ag Mag
BRIDGEWATER, Iowa – Steady, forceful winds are ideal for wind energy developers willing to hand out a fistful of dollars to landowners who agree to lease land for wind farm development. Proponents argue that wind energy improves air and water quality, helps to prevent greenhouse gas emissions, and reduces dependency on fossil fuels. The industry also provides some farmers with additional income. Mike McCurdy of Bridgewater has three 2.3-megawatt Siemens wind turbines on his farm as part of MidAmerican Energy Co.’s Rolling Hills wind project. “People who have been wanting to rebuild sheds or purchase a pickup are now out doing that,” he said.
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It didn’t take long to get used to the noise. It’s not very loud. If anything, it drowns out any other noises like frogs and crickets. Mike McCurdy, Bridgewater farmer who has three turbines in the Rolling Hills wind project on his property
According to McCurdy, the local economy soared as workers poured into town. Local restaurants and stores experienced a surge in sales. As construction was completed, many workers stayed to monitor and maintain the turbines, creating jobs. McCurdy, who owns 700 acres and leases five, said the turbines had very little impact on farming operations: He
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needed only to change the contour of how he plants crops. “I can plant right up to the turbine,” he said. As McCurdy stands at the base of a 270-foot wind turbine, a surprisingly soft, swooshing sound generates from the 106-foot-long blades. continued on 534
AG Mag
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CONTINUED FROM 34
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He has a little advice for farmers who are approached by wind farm companies: “Run like hell the other way.” In June, a 72-turbine wind farm – known as Shady Oaks – went online in Lee County’s Brooklyn Township. It started with some fanfare. In late May, Illinois Lt. Gov. Sheila Simon climbed up the inside of one of the turbines. During a brief presentation beforehand, wind farm supporters spoke of the jobs that wind farms bring to a community. And three school superintendents – invited by wind farm companies – touted the benefits of increased preoperty tax revenue from turbines. “All that good news without mentioning renewable energy,” Simon said. No wind farm opponents showed up. They hadn’t been invited. So what does Englehart have against turbines? They’re noisy, he said. While in his garage, he told a reporter to listen. A humming sound could be heard from nearby turbines. He also said a turbine across the road will cause shadow flicker for a couple of hours later in the day during winter. Years ago, Bruce Papiech of nearby Sublette approached Englehart about the wind farm that he was planning for Brooklyn Township. At the time, Englehart felt comfortable with the idea. He signed a lease. “I thought we were dealing with a local person,” Englehart said. “Pretty soon, he sold out.” Mainstream Renewable Power ended up with the project, then sold it to Goldwind USA, a subsidiary of a Chinese company. (One objection to wind farms
‘‘
is that many are foreignowned.) For farmers who are interested in having turbines on their properties, Englehart advises them to put the towers farther from their homes. In his case, one turbine is within a quarter mile of his home. Four others are within a half mile. Landowners, including Englehart, typically enter confidentiality agreements with wind energy companies, which means they are not supposed to reveal what they’re paid. However, he said he understands that his neighbors get the same amount – a flat fee every year.
Farmers ‘thrilled with turbines’ Windustry, a Minneapolisbased wind energy information organization, states on its website that wind lease terms can vary. But the rule of thumb is that landowners are given $2,500 to $5,000 a year for each turbine, the group said. Larger turbines can mean bigger payments. One industry group estimates an even higher number for farmers’ turbine payments. The Iowa Wind Energy Association says farmers get an average of $6,000 a year for each turbine in the Hawkeye State. Its executive director, Harold Prior, says he knows of a farmer in northwestern Iowa who gets $10,000. “The farmers I speak with are thrilled with turbines,” he said. “They wished they had more of them.” Prior estimates that about half of farmers who host turbines live on their farms. Many of their neighbors get “good neighbor” payments from wind energy companies, but he didn’t know how much they received. CONTINUED ON 37
The farmers I speak with are thrilled with turbines. They wished they had more of them. Harold Prior, executive director of the Iowa Wind Energy Association
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Don McLain, zoning administrator for Northwestern Iowa’s Pocahontas County
CONTINUED FROM 36 As for noise, Prior said, that shouldn’t be a problem. “If the turbines are making a lot of noise, then they’re having a mechanical problem,” he said. “If a turbine is operating properly, they make very little noise. It’s a very low swoosh. I’ve climbed them five times, been around them dozens of times.” The opposition in Illinois and other Midwestern states, Prior said, is more organized than in Iowa. “The mood is pretty darn positive with wind projects in Iowa,” he said. Northwestern Iowa’s Pocahontas County, for instance, has seen virtually no opposition to wind farms, said Don McLain, the county’s zoning administrator. Part of the reason is that the county is sparsely populated, he said. Pocahontas County’s population density is 12 per square mile, one-fourth of what it is in Lee County, Illinois. Pocahontas County has 217 turbines; Lee County has 232. Pocahontas’ first wind farm was built in 2007. “The wind farms don’t really go near any towns in our county,” McLain said. “Our experience has been very good. The development in our county has been very good, and the associated employment has been very welcome.” That’s especially beneficial in a county with a declining population, he said. The population dwindled by 15 percent between 2000 and 2010, according to the U.S. Census.
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Not many wind farms in works Wind energy companies need two things for a successful project – a windy site and nearby access to transmission lines. “The windiest sites have been built or are under leases,” said David Loomis, director of Illinois State University’s Center for Renewable Energy. “Companies are branching out to sites that are less windy and would need new transmission to be built to unlock the wind.” He said the industry isn’t planning many more wind farms now. “We have this pent-up demand” said Loomis, an ISU economics professor in Bloomington. “We have a lot of wind farms that have been issued permits but haven’t been built yet. “The question remains, Will those get built before the permits expire? No one wants to go out and do brand-new development until they see more movement on the existing permits.” Examples of permittedbut-not-yet-operational wind farms are in Bureau and Ogle counties, both next door to Lee County. As for Shady Oaks, Englehart wishes Goldwind’s plan had received more scrutiny. He regrets his decision to allow the turbines. “I will be stuck with them for 25 to 30 years,” Englehart said. “The turbines weren’t worth the money we’re getting.”
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‘Showcase my abilities’ Stearns turns her passion for FFA into career path BY AMY HANSEN For Southwest Iowa Ag Mag
For Heather Stearns, an interest that began in high school has turned into a career path. Stearns, 21, of Woodburn, joined FFA when she was a freshman in high school, and remained a member through college. She now she has a degree in agricultural education and wants to become an FFA adviser. “My older sister was in FFA, so I joined because of her,” Stearns said. “It just really allowed me to showcase my abilities and learn a lot more about agriculture and the things I was interested in.”
In 2009, she won Clarke Community High School’s highest agricultural honor: the Dekalb Agricultural Accomplishment Award, sponsored by Monsanto Co., awarded for excellence in academics, leadership and agricultural work experience. Stearns’ name was recorded on a permanent plaque displayed at the Osceola high school. Stearns graduated from Northwest Missouri State University, in Maryville, Mo., in December. In high school, Stearns liked participating in the FFA career development events and going to the state and national conventions.
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In college, she also attended national conventions to help recruit. “Livestock was my forte, I guess,” she said. When it came to working with animals, Stearns primarily focused on horses, but also worked with small animals, including chickens and rabbits. She showed small animals and horses at the Clarke County Fair. Her degree in agricultural education means she’s certified to teach agriculture in high school, but her career of choice encompasses more than just teaching ag. “With the ag teaching, you become the FFA adviser,” Stearns said. Her high school adviser, Brandi Boyd, inspired her to go into agricultural education. “It is rare to see such drive, talent and loyalty for the agricultural industry as Heather has to offer,” Boyd said. “Wherever she is hired will be lucky to get a great resource and asset for their students. “Those of us in this profession see ourselves as a family. Heather should know that she has lots of big supporters, and we will help make her transition into this new career field as easy as possible.” Stearns said she hopes to inspire future generations as she was inspired during her time in FFA in high school and college. “That would be great if I could do that.”
Heather Stearns Age: 21 Residence: Woodburn School: Graduated from Clarke Community High School in Osceola, and Northwest Missouri State University in Maryville, Mo. Degree: Agricultural education Career: To teach agriculture and become an FFA adviser FFA activities: Participated in FFA in high school and college, won the Dekalb Agricultural Accomplishment Award in 2009
Ag educator Heather Stearns, 21, of Woodburn, rides in the Clarke Youth Rodeo in Clarke County, Iowa. When working with animals, her focus is on horses, but she showed both horses and small animals at the Clarke County Fair.
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Mark and Stacy Boender are presented with the Iowa Farm Bureau Federation’s 2012 Young Farmer Achievement Award on Dec. 5 in Des Moines. Iowa Farm Bureau
Mahaska County farmers win Young Farmer Achievement Award BY LAURIE JOHNS Iowa Farm Bureau
Mahaska County farmers Mark and Stacy Boender were presented the Iowa Farm Bureau Federation’s (IFBF) 2012 Young Farmer Achievement Award on Dec. 5 at the organization’s annual meeting in Des Moines. The annual contest honors young farmers who show outstanding management ability in their farming operations and involvement in Farm Bureau and community activities. Receiving second place in the contest were Tom and Jessica Forbes of Monona County. Third place recipients were Erik and Emily Oberbroeckling of Clayton County. The Boenders raise corn and soybeans, and also operate an excavating business. Mark and Stacy both grew up on farms, so working with family members every day came naturally to them. Mark works with his father and brother, farming
and running a custom farming business that offers a variety of services, including planning, harvesting, manure hauling, tillage work and more. The partnership also includes a custom farming business that now includes all five of Mark’s siblings. “We grew up working together,” Mark wrote about his family in his Achievement Award application. “We can accomplish more together, build off each other’s strengths and grow our businesses. Family is very important to me.” Mark and Stacy have been active on the IFBF Young Farmer Committee at the state and county levels and on the Mahaska County Farm Bureau board of directors. They also volunteer with their church and school board. The Forbeses started farming on their own in 1999, renting land and having the corn and soybean crops custom planted and harvested. They purchased equipment in 2001 and now offer a variety of
Variety of Agricultural Related Services Fertilizers | Crop Protection Products Custom Application | Seed
custom farming services to area farmers. They also operate a seed dealership, offering the latest seed genetics and traits to area farmers. Tom has served as the Monona County Farm Bureau young farmer chairman and also has served on the political action committee and county board of directors. Jessica also is involved with the local chamber of commerce and community economic development committee. The Oberbroecklings raise corn, soybeans and feed hogs. They also offer custom farming services, including round baling, application and trucking. They farm with Erik’s parents, working the land that his grandfather started in 1961. The family also is building a swine wean-to-finish facility that will also allow Eirk’s brother, a recent college graduate, to join the family farm. The Oberbroecklings are involved with the Clayton County Farm Bureau and active with their church and community.
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From the soil to the grain bin:
Data is driving efficiency
L
By Derek Barichello For Southwest Iowa Ag Mag
imitless. That is how seventh-generation farmer and tractor dealer Adam Henkel describes the range of data available to farmers today. “What do you want to know?” asks Henkel, who works for Johnson Tractor in Rochelle, Ill. “There are sensors that can tell a computer whatever you want, from tilage to planting to spraying to cultivating to erosion, all the way to harvest. You can track every single step of your crop since the moment you plant it, all the way to the grain bin, if you want.” nnn Henkel said the information is derived from a geographical info system, the same device being used in cars to tell drivers how to get from point A to point B. This information gives farmers a window into their crop like they never had before. continued on 434
42 Spring 2013
Photos submitted by Witmer Precision Services
ABOVE: Chuck Witmer of Witmer Precision Services in Mount Morris, Ill., installs the sophisticated technology on a planter that will help a farmer place seeds in specific locations with 99 to 100 percent accuracy. Infrared sensors allow computers to communicate data to the farmer about rate populations, row clutches, the effects of speed and meter performance. TOP: A view of the Witmer Precision Services shop in Mount Morris, Ill.
CONTINUED FROM 42 Some farmers, such as Henkel’s family, who farm in southeastern Lee County, Ill, cannot get enough data to make important decisions on crop placement and monitoring. Taking seeds and planting them in the most opportune location, avoiding double planting or skipped rows, and seeing problem areas within their field and analyzing data to see what went wrong. “My family has never been afraid of trying something new to gain an edge,” Henkel said. “We’ve used it since the 1990s, and it continues to change the face of farming.” Other farmers, however, see a price tag starting at $7,000 to $20,000 for top-of-the-line equipment and wonder whether it makes enough of a difference in increased yields or decreased costs to turn a profit. Henkel is certain it pays off, but he admits the difference is relative to the individual farmer. “There are plenty of variables,” Henkel said. “There is a spreadsheet that says this equipment will save you an average of this many bushels, but there’s no guarantee how each farmer will use it. Farmer A may use his data differently than farmer B, and maybe farmer A sees more yield and farmer B uses less fertilizer or spray. CONTINUED ON 44
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Photo submitted by Witmer Precision Services of Mount Morris, Ill.
A look at the “picket fence” row that is established through precision planting.
My family has never been afraid of trying something new to gain an edge. We’ve used [technology] since the 1990s, and it continues to change the face of farming. Adam Henkel, seventh-generation farmer in Rochelle, Ill.
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CONTINUED FROM 43 “It all depends on how much data they want and how much they want to use, whatever tells them what they need to know.” Henkel guesses a little more than 50 percent of farmers are using data-driven technology. Old farmers like Monty Whipple in LaSalle County, Ill., who has spent more than 60 years in agriculture, have depended on their experience to tell them what’s happening in their fields. The size of ears on the corn, for example, might tell him what area of his field is producing more than another. “The real question for me is whether the data is telling me something I don’t know,” Whipple said. The technology could cost as much as a field’s annual yield brings in. “If a farmer has a system that’s working for them, they may be reluctant to take a risk, especially smaller farmers or hobby farmers,” Whipple explained. The irony, to those who work closely with data-driven technology, is the risk that the technology seeks to eliminate. For example, Witmer Precision Services in Mount Morris, Ill., provides data-driven technology for planting. Meters are designed to place a seed out of its planter in a specific location. Infrared sensors measure the accuracy with a goal of 99 to 100 percent. Computers communicate the data to the farmer about rate populations, row clutches, the effects of speed and meter performance. Adjusting meters, vacuum pressure, transmissions and speed can perfect performance. Productivity can be maximized by increasing planter speed without compromising performance. Down force can be measured to eliminate costly root compaction and slotting. “The equipment is designed for farmers to control their
What technology is on the horizon? Data-driven technology has grown leaps and bounds since it changed the face of farming when it was introduced in the 1990s. Here are other technologies on the horizon, according to the University of Illinois Extension offices: ■ A map visible from a mobile computer that shows where all farm vehicles are operating and their fuel levels, how much product has been applied or how much crop harvested, and even whether a piece of equipment is ready to break down. ■ Geographical information systems tracking livestock and barn animals. ■ Manufacturers are introducing controllers, drives and shutoff systems with ever-finer resolution and the ability to apply multiple products at variable rates. Controlled traffic systems, such as strip till, also have become a reality.
planting before crops come up,” said Kelly Stevens of Witmer Precision Services. “They wouldn’t know they’ve skipped every 10th seed until the crop comes up, and then it’s too late.” The cost of every skipped row or double seed adds up. For example, if the equipment is able to rescue 10 bushels to the acre at $6 a bushel, that’s $60 for one acre, $600 for 100 acres and $6,000 for 1,000 acres.. “Farmers want to know how they can increase yields and reduce costs,” said Matt Lillpop, executive director for Whiteside County Farm Bureau in Illinois. “Data has always driven farming, whether it’s on a monitor in front of them, or figured at the end of the year. Farmers are constantly looking at supply versus cost.” Henkel said geographical info systems are becoming automatic features on new tractors. Most new tractors are designed to run automatically without a driver, so farmers can observe seed placement and track progress on a computer screen. “There’s such a demand for them,” Henkel said. “There’s a demand for efficiency.” While there isn’t as much of a demand for it, Henkel said, satellite trackers on trucks can monitor crops at harvest time from the field to the grain bin. “Some companies want to measure the efficiency there,” Henkel said. “How much is being loaded? How quickly is it arriving? Is there a better way to do it all? “The possibilities really are limitless. What do you need to know?”
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44 Spring 2013
Bailey Poolman/Southwest Iowa Ag Mag
Chris Gaesser points out how to run a yield monitor in a tractor. Yield monitors are computers that attach to several different machines and allow farmers to see problem areas by creating a map of the land.
Corning farmer blends ag, tech By BAILEY POOLMAN For Southwest Iowa Ag Mag
Agriculture is becoming more and more of a digital business. Derek Kleve, an area crop specialist with Servi-Tech, says farming with data involves the act of “collecting data by using all of the latest GPS technology and other tools to better prepare and produce maximum yields on every acre.” Farmer Chris Gaesser, 27, of Corning, uses technology to help him make decisions. “We’ve always pretty much adopted [technology] as soon as it came out,” Gaesser said. “We’ve had John Deere GreenStar stuff about ever since it came out. It just gets a little better all the time.” Gaesser uses, among other things, GPS, in-field trials, yield maps and the On-Farm Network, a program through the Iowa Soybean Association, to improve crop yields. “Farming with data has many different aspects which go into it, beginning with fertility and seed planning,” Kleve said. “In irrigated areas, probes go into the ground at different depths
to measure the amount of water in the soil. ... When it comes to spraying the crop, most farmers use an agronomist who will look at the crop [and] identify the problem at hand.” Chris Yield monitors in tractors Gaesser and combines allow farmers to create a map and see problem areas in a field. The monitors also control other things. “Tractors pretty much drive themselves anymore,” Gaesser said. “They monitor everything that goes on: seeding rates, on the sprayer it levels the booms for you ... automatic shut-offs on everything.” Another technology tool, soil sampling, provides farmers with information to apply nutrients where needed, and not apply any where nutrient levels are sufficient. Jerry Hatfield is laboratory director and supervisory plant physiologist with the National Laboratory for Agriculture and the Environment in Ames, Iowa,. “We want to minimize the offside movement,” he said. “And so when we start thinking about farming with data,
we want to capture as much of those nutrients [without] having a negative impact on the rest of the ecosystem.” Other assets farmers use include seed salesmen, equipment dealers, independent consultants and the Internet. Like Gaesser, farmers can get technical help through their implement dealers, employees of ISA, as well as other places. “Each year more farmers are realizing the benefits and value of knowing how they can better their operation and the use of the data they collect on their own farms to increase profits with tight margins,” Kleve said. Gaesser’s use of technology has been advantageous to the farm. For example, nitrogen trials allow him to be more efficient in nitrogen use, and GPS “saves us at least 10 percent in input costs across the board,” he said. “The information collected and used is making an impact on the environment, [such as] using less fertilizer, chemicals, saving fuel, just to name a few,” Kleve said, “and in the end providing the farmer with a profit on their investment.” AG Mag
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VISIONARY TASTES Variety is the spice of Creston church’s book of recipes BY BAILEY POOLMAN For Southwest Iowa Ag Mag
Warm butter, flaky rolls, thick soups and gooey chocolate can send the senses reeling. For those hungry for a home-cooked meal, First Presbyterian Church in Creston’s “Building the Vision,” published in 2002, is chock full of recipes from local cooks. ■■■
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It’s broken into eight sections: Appetizers and Beverages; Breads and Rolls; Soups and Sandwiches; Salads and Vegetables; Meats and Main Dishes; Cakes, Pies and Desserts; Cookies, Candies and Bars; and Men’s, Children’s and Miscellaneous. “Building the Vision” has a variety of recipes, ranging from fruit punches to rice casseroles to peanut butter balls. It’s a good cookbook to have around the house given the ease with which many of the recipes can be made. More complex recipes are included for people wanting a challenge or something fancier. It’s most interesting feature, though, may be the last section: Men’s, Children’s and Miscellaneous. It has easy recipes to make for hunting or fishing trips, such as beef jerky, and there are plenty of recipes children can help with, including one to make bubbles. This section also has joke recipes, such as Elephant Stew. CONTINUED ON 47
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sheet. Place ham over dough to within 1/2-inch of edges; sprinkle evenly with onions, bacon and cheese. Roll up, jellyroll style, starting with a long side. Pinch seams to seal and tuck ends under. Place, seam-side down, on baking sheet. With a sharp knife, cut several 1/4-inchdeep slits on top of loaf. Bake at 350 degrees for 26 to 30, or until golden brown. Cool slightly before slicing. Serve warm. Yield: 6 to 8 servings. Fill with anything your family likes. Recipe provided by Pam Wall
Tina’s Monster Cookies
Bailey Poolman/Southwest Iowa Ag Mag
M&Ms are in the recipe for Tina’s Monster Cookies, from the Creston First Presbyterian Church cookbook “Building the Vision.”
Ham and Swiss Stromboli
CONTINUED FROM 46 Overall, “Building the Vision” offers a variety of simple recipes. Many add “zing” to an ordinary dish, while others maintain the flavor of a family favorite. Mix all that together, and you have a worthwhile cookbook. Here’s a sampling:
Choose
An easy, hearty dinner recipe for any night. 1 (11 oz.) tube refrigerated French bread 6 ounces thinly sliced deli ham 6 green onions, sliced 8 bacon strips, cooked and crumbled 1 1/2 cup (6 ounces) shredded Swiss cheese Unroll dough on a greased baking
Simple ingredients and not a lot of extra work. 3 beaten eggs 1 cup brown sugar 1 cup white sugar 1/2 tsp. vanilla 2 tsp. baking soda 1/4 lb. (1 stick) butter 1 1/2 cups peanut butter 4 1/2 cups oatmeal 1/2 cup chocolate chips 1/2 cup M&Ms Mix in order in a large pan. Use an ice cream scoop to drop dough onto cookie sheets. Bake at 350 degrees for 12 minutes. Do not overbake. Note: This is actually 1/4 of the original recipe provided by Dixie Thaden CONTINUED ON 53
Growing at
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Farm Service Agency has evolved through the years
‘‘
Today, FSA continues to provide America’s farmers with a strong safety net through the administration of farm commodity programs. It also implements ad hoc disaster programs. FSA’s longstanding tradition of conserving the nation’s natural resources continues through the Conservation Reserve Program.
’’
U
ndoubtedly, many of you have heard of the USDA’s Farm Service Agency, and some may have received benefits from your local FSA office, but as time passes and memories fade, we forget why and when this agency to help support American farmers and ranchers came into being. The FSA traces its beginnings to 1933, in the depths of the Great Depression. A wave of discontent caused by mounting unemployment and farm failures helped elect President Franklin D. Roosevelt, who promised Americans a “New Deal.” One result was the establishment in 1935 of a Department of Agriculture agency with familiar initials, FSA, which stood for Farm Security Administration. Originally called the Resettlement Administration, and renamed in 1937, its original mission was to relocate entire farm communities to areas in which it was hoped farming could be carried out more profitably. But resettlement was controversial and expensive, and its results ambiguous. Other roles soon became more important, including the Standard Rural Rehabilitation Loan Program, which provided credit, farm and home management planning and technical supervision.
DANIEL WELLS
County Executive Director Adair County, Iowa This was the forerunner of the farm loan programs of the Farmers Home Administration. Financial assistance for conservation in the 1936 Act was called the Agricultural Conservation Program. The ACP sought to reduce commodity surplus by paying farmers to replace soil-depleting crops with soil-conserving crops. The soil-depleting crops included corn, cotton, wheat and other commercial crops the USDA believed to be in surplus. The Soil Bank, established by the Agricultural Act of 1956, was a large-scale effort, similar in some respects to programs of the 1930s, to bring about adjustment between supply and demand for agricultural products by taking farmland out of production.
Brock’s industry-leading grain systems are designed to perform together to match your needs and to provide a better return on your investment. You can trust Brock for:
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lished lending for rural housing, rural business enterprises, and rural water and waste disposal agencies. Programs such as commodity marketing controls, and the policy of the Congress to assist farmers in obtaining parity prices and parity income, made the federal government the decision-maker for the nation’s farmers. After Pearl Harbor, the War Food Administration was organized to meet the increased needs of a country at war. This reorganization grouped production, supply and marketing authorities under a central agency that coordinated the flow of basic commodities. After World War II, the authority of the WFA was terminated. In its place came the Production and Marketing Administration which, aside from other responsibilities, maintained a field services branch to aid in program oversight. In 1953, a reorganization of USDA again made changes in the powers and duties of its price support and supply management agency. With the changes came a new name — Commodity Stabilization Service — and an increased emphasis on the preservation of farm income. Conserving programs such as the Soil Bank were introduced to bring production in line with demand by taking land out of production for periods of time ranging up to 10 years. Community, county and state committees were formally identified for the first time as Agricultural Stabilization
CONTINUED FROM 48 Under its terms, farmers cut land planted to these crops below established allotments or, in the case of corn, their base acreage, and received payments for the division of such acreage to conserving uses. The Soil Bank was a voluntary program. Another related program was Debt Adjustment and Tenure Improvement. FSA county supervisors, sometimes with the help of volunteer committees of local farmers, would work with farmers and their debtors to try to arbitrate agreements and head off foreclosure. The Resettlement Administration of 1935 and the Farm Security Administration of 1937 provided for cooperative medical prepayment plans among the poor farmers they were assisting. The Food, Drug, and Cosmetic Act of 1938 was one of the last of the New Deal enactments and gave Americans new protection from medical quackery or adulterated and dangerous drugs. In 1946, the Farmers Home Administration Act consolidated the Farm Security Administration with the Emergency Crop and Feed Loan Division of the Farm Credit Administration — a quasigovernmental agency that still exists today. This act added authorities to the new Farmers Home Administration that included insuring loans made by other lenders. Later legislation estab-
and Conservation committees. The Commodity Stabilization Service became the Agricultural Stabilization and Conservation Service in 1961, and the new name reflected the agency’s stabilization and resource conservation missions. In 1994, a reorganization of USDA resulted in the Consolidated Farm Service Agency, renamed Farm Service Agency in November 1995. The new FSA encompassed the Agricultural Stabilization and Conservation Service, Federal Crop Insurance Corp. and the farm credit portion of the Farmers Home Administration. In May 1996, FCIC became the Risk Management Agency. Today, FSA continues to provide America’s farmers with a strong safety net through the administration of farm commodity programs. It also implements ad hoc disaster programs. FSA’s longstanding tradition of conserving the nation’s natural resources continues through the Conservation Reserve Program. FSA places special emphasis on providing loans to beginning, minority and women farmers and ranchers. Its Commodity Operations division purchases and delivers commodities for use in humanitarian programs at home and abroad. So the next time you stop into your local FSA office, take time to think about those who molded and formed this agency into what it is today and to those who are still serving and supporting the farmers and ranchers of rural America.
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Farmland value reaches historic heights By Iowa State University Extension
A
verage Iowa farmland value is estimated to be $8,296 per acre, an increase of 23.7 percent from 2011, according to results of the Iowa Land Value Survey conducted in November. This is the third year in a row of values increasing by more than 15 percent. The 2012 values are historic peaks. The increase is somewhat higher than results of other recent surveys of Iowa farmland value: the Chicago Federal
Reserve Bank estimated an 18 percent increase in Iowa land values from October 2011 to October 2012, and the Iowa Chapter of the Realtors Land Institute estimated a 7.7 percent increase from March to September 2012. “The difference in survey estimates could be due to values increasing more rapidly in the past few months than earlier in the year. Better-than-expected crop yields and the level of land sale activity due to the proposed changes in land-related taxes contributed to the
increasing values,” said Mike Duffy, Iowa State University economics professor and extension farm management economist who conducts the survey. “The Iowa State survey samples different populations, and uses different wording than the other surveys. This could also lead to different results especially in times of uncertainty. Even within the Iowa State survey there was considerable variation in the estimates.” CONTINUED ON 51
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CONTINUED FROM 50 O’Brien County had an estimated $12,862 average value, the highest average county value. O’Brien County also had the highest percentage increase and highest dollar increase in value, 35.2 percent and $3,348, respectively. Osceola, Dickinson and Lyon counties also saw 35.2 percent increases. The Northwest Crop Reporting District, which includes all four counties, reported the highest land values at $12,890, an increase of $3,241 (33.6 percent) from 2011. “The 2012 land value survey covers one of the most remarkable years in Iowa land value history,” Duffy said. “This is the highest state value recorded by the survey, and the first time county averages have reached levels over $10,000. While this is an interesting time, there is considerable uncertainty surrounding future land values.”
Why Iowa farmland values are increasing Duffy said understanding some of the causes for the current increase in farmland values is helpful in assessing the situation. Farmland values are highly correlated with farm income. As farm income increases, so will land values. In 2005, corn prices averaged $1.94
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The 2012 land value survey covers one of the most remarkable years in Iowa land value history. ... While this is an interesting time, there is considerable uncertainty surrounding future land values. Mike Duffy, Iowa State University economics professor
per bushel in Iowa. The preliminary estimated price for November 2012 is $6.80. Soybean prices changed from $5.54 to $13.70 over the same period. Coming into 2012 there was a general sentiment that prices would decline from their peaks. But, the drought changed this and the prices remained at high levels. How long the high prices will last is unknown. There has been considerable variation in commodity prices over the past few years, but farm income has increased substantially. The Iowa State economist goes on to say, the increase in income has been the primary cause for the increase in farmland values, but not the only one. “There are other causes for the increase,” Duffy said. “Interest rates are at the lowest level in recent memory. Farmland purchased by investors went from 18 percent in 1989 to 39 percent of purchases in 2005, but investor purchases are back to the 1989 level of 18 percent this year after decreasing for the third year in a row.” Another key component is the costs
Adair County Mutual Insurance Association For more than 120 years, we have provided protection for the property of area farmers and homeowners. Our affiliated insurance agencies can help you with all of your insurance needs.
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of production. In the past, costs have risen in response to higher commodity prices. This is especially true for rents. Iowa State University estimated costs of crop production have shown a 61 percent increase in the cost per bushel since 2005. Without land, the increase has been 87 percent. Duffy believes there still is discipline in the land market, while land values have increased 64 percent in the past three years, in 2009 values did decrease by 2.2 percent. Therefore, it is prudent to be mindful of the factors that influence land values. The economist said there are several key components to watch: ■ Weather related problems – both here and around the world. ■ Government policies – especially policies related to estate and capital gains tax rates. ■ The amount of debt incurred with land acquisition. ■ What happens to input costs – land being the residual claimant to any excess profits in agriculture.
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AG Mag
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Make Temple Grandin proud
Laurie Johns Iowa Farm Bureau “Between the Lines”
I
n an age of political-correctness overload, it’s downright hypnotic to hear someone speak without filter or fear. But, then again, Temple Grandin always has been a trailblazer. A designer of livestock handling facilities and a Colorado State University professor of animal science, Grandin has long been recognized as an expert by livestock farmers and meat processing folks; but it was the HBO movie about her life, starring Claire Danes, that made her a celebrity with consumers. She uses her international fame to do a job that makes others shudder in their cowboy boots. No, I’m not talking about bull castration, pig wrangling or heavy-lifting. (She does those, too, no doubt.) What Temple advocates is ... deep breath! ... speaking out. Speak up! Step Forward! Be Bold! Share! Temple says farmers need to get better at that, because the good news of farming is being hijacked by fear mongers who have a “bone to pick” with progress. Grandin spoke to Iowa farmers at the 94th Iowa Farm Bureau Annual Meeting. Her progressive, “straight talk” keynote was delivered like a shot across the bow of a battleship; more than a thousand Iowa farmers sat in rapt attention as she talked about the public’s thirst for farming knowledge. “I talked to one student at the University of Colorado-Boulder that thought if beef cattle went to Whole Foods they were born on pasture, and if they went to Safeway or Kroger or someplace like that, they were born in a feed yard,” Grandin said. “I explained to them that no beef cattle are born in a feed yard. The most basic things people just don’t know. It’s kind of appalling.” Grandin says the majority of farmers and consumers she talks to are receptive. “The public is who we need to be talking to,” she said. “Because one of the big problems we’ve got today is [that] the Internet increases the voice of radicals. “I don’t care what the issue is: if you’ve got a big, fat mouth, you can make a big, huge splash on the Internet. Well, the people that we need to be
52 Spring 2013
Shaw News Service file photo
Temple Grandin admires a model cattle truck designed by Randall Witmer of Dixon, Ill., during a tour of Dale Pfundstein’s farm in rural Sterling, Ill., in July 2010. Grandin says farmers need to get better at speaking out and being advocates for themselves and their industry.
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But, the true message we all need to embrace is the need for being there to answer questions, share a story, listen to consumers, and provide choices. Speaking out actually is easy, once you get started.
communicating with are the people in the middle, the public.” Grandin acknowledged that while there are things the public needs to learn about farming, there also are certain things that are harder for them to embrace because sometimes the scale and innovation of farming and food production surprises consumers. “But, they need to know that big isn’t bad. Small isn’t necessarily good.” But, the true message we all need to embrace is the need for being there to answer questions, share a story, listen to consumers, and provide choices. Speaking out actually is easy, once you get started. Whether it’s done through fun chan-
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nels, like on You Tube, or simply by taking a little extra time to chat about where bacon comes from while you’re in the checkout aisle at the grocery store, the stage is yours. You don’t have to be a celebrity. You don’t need a college degree. You just need passion. And that, my friends, is one thing today’s responsible Iowa farmers have, in spades. Now, wouldn’t Temple be proud?
“Between the Lines” is written by Iowa Farm Bureau Public Relations Manager Laurie Johns and examines rural life and the role agriculture plays in the lives of all Iowans.
CONTINUED FROM 47
PumpkinChocolate Chip Loaf
1 3/4 cup all-purpose flour 1 tsp. baking soda 1 tsp. baking powder 3/4 tsp. salt 1 stick butter, room temp. 1 1/4 cup sugar 3 large eggs 1 cup canned pumpkin pie filling 1 tsp. vanilla 1/3 cup milk 3/4 cup mini chocolate chips 3/4 cup chopped nuts (optional) Preheat oven to 350 degrees. Butter and flour a 5-by-9-by-2.4-inch loaf pan. Sift the first five ingredients into medium bowl. Using a mixer, beat butter in a large bowl until smooth. Gradually beat in sugar, then eggs, one at a time. Add pumpkin and vanilla. Add dry ingredients alternately with milk. Stir in chocolate chips and nuts. Transfer batter to prepared pan. Bake loaf until knife inserted into center comes out clean, about 55 minutes. Cool in pan on rack for 15 minutes. Turn loaf out onto rack to cool completely. Note: Can be made 2 days ahead. Wrap in plastic and store at room temperature Recipe provided by Jennifer Frakes
CONTINUED FROM 35 “It didn’t take long to get used to the noise,” he said. “It’s not very loud. If anything, it drowns out any other noises like frogs and crickets.” Wind farm developers seek the windiest sites. “You don’t choose them; they choose you,” McCurdy said. Developers avoid trees, buildings, and hilly terrain, which can slow wind speeds. It is also important to be near a transmission grid and a site that is accessible to construction equipment, such as large cranes. The lease is a big commitment, but well worth the return, McCurdy said. Easement duration can vary, but the most com-
To buy the book First Presbyterian Church’s “Building the Vision” cookbook was published in 2002 by Jumbo Jack’s Cookbooks, a part of Audubon Media Corp., in Audubon, Iowa, which, among other things, helps organizations publish cookbooks as fundraisers. It costs $5 and is available from the church at 702 W. Prairie, Creston, Iowa, 50801. Call 641782-5938 if you need it shipped.
Green Beans with a Twist
1 16 ounce pkg. frozen French-style green beans 1 cup sliced fresh mushrooms 2 tlbs. margarine 1 envelop ranch salad dressing mix 4 bacon strips, cooked and crumbled In a skillet, saute beans and mushrooms in margarine. Sprinkle with dressing mix; toss to coat. Just before serving, sprinkle with bacon Variation: For added flavor, saute the beans and mushrooms in bacon grease instead of margarine. Recipe provided by Anne Vicker
mon term for MidAmerican Energy’s wind project is 50 years, spokeswoman Tina Potthoff said. Income from turbines depends on turbine size, amount of electricity produced, the selling price of electricity, and the location of the turbine. According to the U.S. Department of Energy, landowners in some areas of Iowa can expect to receive an annual landlease payment ranging from $2,000 to more than $4,000 per turbine. “There have been people that have been approached and turned down the offer,” McCurdy said. “And after seeing how well others are doing, they say, ‘Well, I’ve changed my mind,’ and by that time it’s too late. “It is a great deal.”
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Dr. Judy Little • Dr. Rich Caves • Dr. Jaclyn Bradley AG Mag
53
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54 Spring 2013
Advertiser Index ADAIR COUNTY MUTUAL INSURANCE ASSOC ...... 51 ADVANCED AG, LLC ................................................ 4 AKIN BUILDING CENTERS..................................... 51 AMERICAN HOMES BY DAVE LONG ...................... 55 AMERICAN STATE BANK....................................... 39 B & K COMM AGRI LTD ......................................... 48 BARKER IMPLEMENT ...................................... 28,29 BIG BOYZ TOYZ ..................................................... 49 CLARKE COUNTY CHIROPRACTIC......................... 37 CLARKE COUNTY HOSPITAL ................................. 30 CLARKE COUNTY STATE BANK ............................. 50 COUNTRY CONCRETE ........................................... 11 CRESTON AUTOMOTIVE ........................................ 13 CRESTON CHAMBER OF COMMERCE ................... 18 CRESTON LIVESTOCK AUCTION ........................... 36 CRESTON MOBILE HOME SALES .......................... 36 CRESTON PUBLISHING COMPANY........................ 54 CROP PRODUCTION SERVICES ............................... 6 F & M BODY SHOP ................................................ 37 FARM & HOME SUPPLY ........................................ 10 FARM BUREAU FINANCIAL SERVICES .................. 30 FARMERS COOPERATIVE CO ................................ 23
FIRST FEDERAL SAVINGS BANK .......................... 19 FIRST NATIONAL BANK ........................................ 32 FOX WELDING/VERMEER...................................... 19 GAVILON ............................................................... 32 GILBERT PLUMBING & HEATING ............................ 9 GIZA CONTRACTING ............................................... 2 GLENDENNING MOTOR CO., INC ............................. 5 GOOB’S REPAIR .................................................... 46 GRACELAND UNIVERSITY ..................................... 47 GREAT WESTERN BANK........................................ 25 GREATER REGIONAL MEDICAL CENTER ............... 22 GREEN VALLEY CHEMICAL CORP ......................... 46 H & W SALES ........................................................ 44 HATZER & NORDSTROM ....................................... 16 HUNSICKER & ASSOCIATES.................................. 38 IOWA STATE SAVINGS BANK ................................ 40 JUST POWER & REPAIR ........................................ 25 KELLY TIRE & EXHAUST........................................ 27 M & M AG SERVICES ............................................ 31 M & M PONTIAC-BUICK-GMC INC. ....................... 26 MAIN STREET INS................................................. 31 MEDICAP PHARMACY .......................................... 53
MOBERG IOWA REALTY ........................................ 38 NAPA CRESTON .................................................... 12 NUTRA FLO ........................................................... 43 OSCEOLA VET CLINIC ........................................... 53 PIONEER SEED/JEREMY IDE ................................ 53 QUALITY GLASS CO .............................................. 53 S.I. DISTRIBUTING ................................................ 24 SOUTH CENTRAL IOWA COMMUNITY FOUNDATION ..................................... 8 STALKER CHEVROLET, INC ..................................... 3 STATE FARM INSURANCE ..................................... 17 STINE SEED COMPANY (BART CLINE) .................. 44 SURGRO PLANT FOOD CO..................................... 33 TAYGOLD COOPERATIVE ....................................... 41 TAYLOR FINANCIAL .............................................. 43 THOMAS QUALITY FARMS.................................... 41 TROST AGENCY, LLC ............................................. 21 TURNER INSURANCE AGENCY .............................. 48 TYLER INSURANCE SERVICES, INC ...................... 40 UNION CO DEVELOPMENT ASSN .......................... 40 VETTER EQUIPMENT CO ....................................... 56 WINTERSTIEN CONSTRUCTION .............................. 7
Be Inspired... “Now is the perfect time to d contact us to buil this spring!” Dave Long
American Homes By Dave Long
101 N. Walnut • Creston 641-782-4193
www.americanhomesbydavelong.com AG Mag
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