NAM_11-21-2014

AG Mag Central Iowa

From

Boom to Burst?

Corn and soybean prices are dropping. Local farmers and ag experts discuss whether this is the end of an industry bubble or simply a normal contraction.

Drop in crop prices has soybeans on the rise

P.O. Box 967 Newton, IA 50208 CHANGE SERVICE REQUESTED

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Cover crops beginning to take hold in region A Publication of Shaw Media

Fall 2014

Index

AG Mag Central Iowa

Publisher Dan Goetz Advertising Director Jeff Holschuh Managing Editor Abigail Pelzer Magazine Editors Larry Lough, Jeff Rogers

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Page Design Jeff Rogers Reporters & Photographers Sarah Brown, David Giuliani, Kate Malott, Mike Mendenhall, Jamee A. Pierson, Ty Rushing, Jake Waddingham, and Kyle Wilson Published by News Publishing Co. 200 First Avenue East Newton, IA 50208 641-792-3121

Articles and advertisements are the property of News Publishing Co. No portion of the Central Iowa Ag Mag may be reproduced without the written consent of the publisher. Ad content is not the responsibility of News Publishing Co. The information in this magazine is believed to be accurate; however, News Publishing Co. cannot and does not guarantee its accuracy. News Publishing Co. 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.

COVER STORY

Game changer?

Central Iowa farmers are sticking to their plans, for now, despite high yields and low prices.

Taking cover Local farmers seem to be among the early adopters of cover crop usage in Iowa.

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AG Mag

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Index 10

All work, no horseplay

Pouring their efforts into farm

Record crop, and price drop

Mike and Connie Vincent have turned a heritage farm in Keokuk County into a wine lover’s delight.

A healthy growing season and dropping commodities prices could result in more soybeans being planted.

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NO NEED TO CHANGE ... YET

Jamee A. Pierson/Central Iowa Ag Mag

Paul Hjortshoj harvests his soybean field south of Monroe, near Lake Red Rock in Marion County. Hjortshoj, who took over his family farm, has acreage in Jasper and Marion counties, where he has a cattle herd along with farming corn and soybeans. He said he does not plan to alter his crop rotation despite the recent drop in grain prices.

High yields, low prices don’t change plans for farmers

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BY JAMEE A. PIERSON AND DAVID GIULIANI For Central Iowa Ag Mag

o changes are planned. That is what a majority of Central Iowa farmers said in response to this fall’s higher yields and lower grain prices.

“No, it really doesn’t change how we plan for next year,” said Paul Hjortshoj of Monroe. “We pretty well have a rotation of corn and beans, and we keep so much land in hay for the cattle and pasture, so no, it probably won’t change our plans very much.”

Hjortshoj, who farms in Jasper and Marion counties, has a cattle herd along with farming corn and soybeans.

“The cow numbers are down, so we don’t have 6 Fall 2014

as many cattle on feed that we normally have,” Hjortshoj said, “so right now, the cattle prices are high; I would consider them high.

“Since the price of corn is low, the cost to feed the cattle is down, so that helps. We’re at an all-time high for cattle prices right now, so if you have the cattle to sell, that is good.”

The trend in recent years has been high grain prices, but with a strong yield expected this year, the trend has reversed.

“Corn kind of goes with supply and demand, and we have a bigger supply than we do demand,” Hjortshoj said. “In the last four or five years, we have had corn prices higher than normal, so corn prices have dropped a lot, but they went up quite a bit, too. I would say the agricultural income would be down a little because of the low prices.”

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U.S. corn yields Yields have increased dramatically over the past century: Year ................... Bushels per acre 2014 ...................................... 172 * 2013 ........................................ 159 2012 ........................................ 123 2011 ........................................ 147 2010 ........................................ 153 2009 ........................................ 165 2008 ........................................ 154 2007 ........................................ 151 2006 ........................................ 149 2005 ........................................ 148 2000 ........................................ 136 1995 ........................................ 114 1990 ........................................ 119 1985 ........................................ 118 1980 .......................................... 91 1975 .......................................... 86 1970 .......................................... 72 1965 .......................................... 74 1960 .......................................... 72 1955 .......................................... 42 1950 .......................................... 38 1945 .......................................... 33 1940 .......................................... 29 1935 .......................................... 24 1930 .......................................... 21 1925 .......................................... 27 1920 .......................................... 30 * estimated Source: U.S. Department of Agriculture

Farmland values Average 2014 farmland values per acre in Midwestern states, with Iowa and Illinois being the first and second highest nationwide, respectively: Farmland value % increase per acre 2013-14 Illinois $7,520 5.9% Indiana $6,950 8.6% Iowa $8,500 10.4% Michigan $4,700 9.3% Minnesota $4,750 10.5% Ohio $5,550 8.8% Wisconsin $4,400 7.3% Source: U.S. Department of Agriculture CONTINUED FROM 6

‘Softness’ in farmland prices According to a study in the spring, the U.S. Department of Agriculture found that Iowa and Illinois had the highest-priced farmland, on average, nationally – at $8,500 and $7,520 an acre, respectively. In Iowa, where the state says one of six jobs is directly related to agriculture, the average farmland price has nearly doubled since 2010.

In parts of Illinois and Iowa, though, some farmland prices are starting to see declines. But Dale Aupperle, president

Jamee A. Pierson/Central Iowa Ag Mag

Paul Hjortshoj of Monroe said of the drop in corn prices, “In the last four or five years, we have had corn prices higher than normal, so corn prices have dropped a lot, but they went up quite a bit, too.”

Increases since 2010 A look at increases in average farmland values since 2010 in Illinois and Iowa: 2010 2011 2012 2013 2014 Iowa $4,350 $5,410 $6,530 $7,700 $8,500 Illinois $4,720 $5,390 $6,210 $7,100 $7,520 Source: U.S. Department of Agriculture

and founder of Forsyth, Illinois-based Heartland Ag Group, said increases in rural land values over the past decade don’t represent a bubble.

“One of my favorite expressions is that ‘Farmland is what it earns,’” said Aupperle, whose company advises farmers. “The earnings stream has supported farmland values for the last 10 years. That takes away from it being a bubble. Now that the earnings stream is threatened with lower commodity prices, you expect to see some softness in land prices.”

Although corn and soybean prices are down, he said, demand for those crops is stable. He said one expert he knows likes to say, “The best cure for low prices is low prices.”

“I believe that with $3 [a bushel] corn and $10 soybeans, that is creating new markets as we speak,” Aupperle said.

As corn prices decline, that means feed costs less.

“The livestock guys are enjoying this,” Aupperle said. “That’s stimulating demand.”

He said he hadn’t seen a dramatic reduction in land values. Since 1970,

he said, the upward trend in farmland prices has been interrupted just three times. Two of those interruptions were corrections of less than 10 percent, he said, while the last one, in the 1980s, saw a 50 percent drop.

“That was a period of extreme speculation, high inflation, and a severe rise in interest rates,” he said.

That’s not the case now. Compared with much of the rest of the economy, Aupperle said, farmland is considered a good long-term investment.

“Right now, money on the sidelines is waiting,” he said. “If farmland is producing a diminished return on investment, money managers will look around. Can I do better elsewhere? Now we’ll stand the test of scrutiny with our investments and be competitive.”

‘More like a balloon’ Chad Hart, a crop markets specialist and professor at Iowa State University, said corn and soybeans are experiencing record demand.

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Sell, or store?

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“You have the ethanol industry working at a strong pace. You have good but not great export demand,” he said.

Meanwhile, the livestock industry looks strong, with 25 percent of pork being shipped overseas, Hart said.

“There are a variety of countries we’re sending pork to,” he said. “China is a big player. So are the Middle East and the countries all along the Pacific Rim. Russia has been a big market for us in the past.”

He, too, sees no bubble in farmland prices.

“I would describe this more like a balloon,” Hart said.

“It’s not going to be a bad investment. Most hold onto it for 20, 40 or 50 years.”

Corn yields are estimated to hit a record 172 bushels an acre this year nationally, according to the USDA. The last record was 2009 – at 165 bushels. For decades, yield numbers have risen. Since 1975, corn yields have more than doubled.

Jamee A. Pierson/Central Iowa Ag Mag

Dan Keuning said that he plans to stick with the “same old stuff” in terms of his rotation of corn and soybeans on his farm south of Prairie City in Marion County. Keuning, who owns part of the 700 acres he farms and rents the rest, said the crops he had picked so far look really good.

“There’s a big debate within agriculture nationally: Do we have continued room for growth in yields?” Hart said. “You look at state-level numbers, you see well over 200. Somewhere in the 200s is where I think we can plateau.”

For the time being, the money is on the livestock

industry, which is maximizing returns with low feed costs, he said.

“We’re seeing a return to normalcy on the crop side,” he said. “We’re seeing tight supplies for livestock, and that will mean good profit opportunities for the next year and half for livestock.”

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Dan Keuning, who farms about 700 acres south of Prairie City in Jasper and Marion counties, also plans to stick with the “same old stuff.”

“I usually rotate corn and beans back and forth,” Keuning said.

He said he plans to do the same thing next year. For this year’s crop, Keuning did contract out a portion and got a little better price than is currently being offered for the bumper crop.

“Crops are better,” Keuning said. “Bad dirt’s 50 bushels [an acre], good dirt’s 60 plus on the beans.

I’ve only picked one load of corn, but it looks really good, too.”

Taking a slightly different approach is Byron Vander Molen, who farms 400 acres of corn, soybeans, hay and alfalfa south of Sully in Mahaska County. He plans to store the crops over the winter until prices get better, then sell between January and July.

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Cost cutting might mean more bean acres A

BY DUSTIN JOHNSON For Central Iowa Ag Mag

nyone following the price of grain knows that it has been an ugly third quarter for farm profitability. December corn futures fell 25 percent during this time, while November soybeans fell 21 percent.

This sets the stage for heavy cost cutting in 2015.

The corn-soybean ratio for next year ended the quarter at 2.56, which means beans already have a large price incentive built in. A few private sector estimates are forecasting a rather substantial acreage swap from corn to soybeans in 2015, including Informa economics. It is probably not a bad idea to run your own cornsoybean comparison analysis to see what opportunities you have for your own operation.

Keep in mind that markets are usually perfect and this ratio may be suscepti-

ble to change as it prices in a potential acreage swap. The opportunity may disappear long before the first acre of 2015 is planted.

If you plan to switch some of your own acres to soybeans, it Dustin might not be a bad Johnson idea to lock in the Says those price using forward switching cash sales, futures, put some acres to options, or a combina- soybeans might tion of these hedging want to lock in tools. This premium the price beans hold to corn may not last, especially if South America has a good growing season with the record bean acres being projected. With the world soybean stocks-to-use ratio expected to grow to 35.8 percent this year, we see the potential for an oversupply in soy-

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beans bringing the ratio back toward 2.0 next year.

For those who store a large portion of the 2014 corn crop on farm, you might want to consider selling forward to ensure the carry is collected. Of course, nobody can predict the future, but we do know what the opportunity costs are to selling forward compared to selling at the market now. We see a large potential for unpriced grain to lose that value through the winter even during a sideways market.

It has been a long time since we have had a carryout this size, and we have to remember that rebuilding demand usually takes time and low prices. With that said, the best cure for low prices is low prices, and we see the potential for opportunities to come out of this recent downturn.

Dustin Johnson is a senior analyst for AgYield.

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History uncorked One couple turned heritage farm into wine lover’s delight

BY TY RUSHING For Central Iowa Ag Mag

After pouring more than two decades of their lives into building one of the largest insurance firms in Altoona, Mike and Connie Vincent were ready for their next adventure.

Leaving behind their life in Des Moines’ rapidly growing neighborhood, the Vincents returned to Mike’s boyhood home Keota, in Keokuk County, to experience a more peaceful and serene setting on the old family farm.

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10 Fall 2014

Photos by Ty Rushing/Central Iowa Ag Mag

Mike and Connie Vincent, owners of Wooden Wheel Vineyards in Keota, love making award-winning wines that people enjoy.

Their vineyard also is home to a historic events center, and is the family farm they purchased from Mike’s father in 1978.

LEFT: The vineyards cover 7 acres of the heritage farm in Keokuk County. CENTER: The Vincents use state-of-the-art winemaking equipment and strive to keep their wines as natural as possible. RIGHT: Every grape is hand picked and fermented on site. The vineyard produces 10 different wines and has a tasting room housed inside a historical barn.

CONTINUED FROM 10

They had originally bought the heritage farm in 1978 from Mike’s father.

“I was part of the fifth generation,” Mike said, “and we got the farm from my great-great-grandmother. She was the first one to settle here.”

Isabella Wright had settled the land after getting a U.S. government land grant, and Mike has the original document to prove it.

While this family has a very rich history – Isabella’s father was a veteran in the war of 1812 – it’s what Mike and Connie did upon their arrival in 2010 that has changed the way people see the farm,

which is just off of Iowa Highway 92.

“In 2010, we planted our first grape vines and started construction on the barn,” Mike said.

Realizing they didn’t have enough land to make a profitable farming operation, the Vincents instead began to build what is now Wooden Wheel Vineyards.

They got an inside look at how wineries worked after insuring one previously and thought it was a great way to make use of the limited amount of land they had.

“The grapes will produce four or five tons an acre,” Mike explained. “Each ton will produce 150 gallons of wine, and each gallon of wine produces five bottles.

So, if you take our seven-acre vineyard,

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and when everything is producing at capacity, we should be able to produce 20,000 to 22,000 bottles of wine a year.”

“He thinks it’s fun,” Connie joked.

The Vincents turned the former barn, which was one of the original structures on the farm, into a year-round event center that plays host to everything from baby showers to weddings.

Wooden Wheel offers 10 wines and uses a variety of grapes and other fruits to produce them. Connie maintains the vineyards, and Mike does the actual wine making.

After years of working with people, the Vincents are happy with their plants and the opportunity to enter their later years kicking back and making wine.

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Not horsing around Hard work brings show success for Miller family

BY TY RUSHING For Central Iowa Ag Mag

Ty Rushing/Central Iowa Ag Mag

Even when they’re not preparing for shows, Emily Miller, 15, spends as much time as she can with her show horse, Ronie. The duo walked away from this year’s Iowa State Fair with a number of purple and lavender ribbons.

Covered in sweat, hay and heavens knows what else, Kimberly Miller of Newton couldn’t help but smile as she watched her daughter, Emily, show her horse in multiple events at the Jacobson Exhibition Center this past summer at the Iowa State Fair.

As a mother of three – two daughters, one son – and horse lover, Kimberly had been waiting for this moment for a long time. Her patience paid off as 15-year-old Emily, who is the youngest of the Millers, showed she has the same enthusiasm for the animals her mother has.

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“I started riding horses when I was probably 3 or 5 years old,” Emily said.

“I just started doing it for fun. Then I started showing about five years ago, and I started out with, like, county fair, and I got really serious about two to three years ago.”

Getting serious might be an understatement for the teenager, who starts her initial prep work in mid-February for the April shows.

Emily’s older siblings, Laura and John, showed horses for a little bit in 4-H. Kimberly said that around middleschool age, she could tell they weren’t as committed to horse showing as she had been in her youth. “[Emily’s] just kept it up and gotten more intense about it,” Kimberly said.

“She got serious about it and put a lot of work into it. I knew that Emily would be the one.”

Since she’s dedicated herself to being a great showman, the awards and accolades have come rolling in. Emily was crowned the 2014 Marshall County Pony Express Junior Queen and 2013 Jasper County Pony Express Junior Queen, and earned numerous purple and lavender ribbons at this year’s state fair.

CONTINUED ON 14

Ty Rushing/Central Iowa Ag Mag

With the help of her mother, Kimberly, Emily Miller has been winning awards and accolades across Iowa for her horse-showing abilities. Kimberly showed horses when she was younger and loves that her youngest daughter has that same passion.

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Meet Emily Miller

Age: 15 Emily is from Newton, and lives on her family’s acreage, where they maintain a small number of livestock and two horses, including her show horse, Ronie. Although she is only a teenager, Emily says that showing horses has been a great way for her to learn responsibility and shows her that hard work can pay off. Some of her other activities include competition swimming and marching band.

Awards: 2014 Marshall County Pony Express Junior Queen, 2013 Jasper County Pony Express Junior Queen, 2014 Jasper County Fair Grand Champion and the first ever Bryce Leonard Supreme Showmanship Contest, 2014 Iowa State Fair: Semi-finalist in the Cowgirl Queen Contest – representing the Marshall County Pony Express. Overall Reserve Champion English Walk Trot (grades 9-12) – purple ribbon and halter Overall Reserve Champion English Pleasure (grades 9-12) – purple ribbon and halter Champion English Walk Trot (grade 9) – purple ribbon Champion English Pleasure (grade 9) – purple ribbon Champion Showmanship Winner (grade 9) – purple ribbon Reserve Champion Western Walk Trot Champion – (grade 9) – lavender ribbon Reserve Champion Western Pleasure Champion – (grade 9) – lavender ribbon, 9th grade Horsemanship class – (Blue ribbon)

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“People either get to state fair or you don’t get to state fair,” Kimberly said.

“If you’ve not shown an animal, [you] don’t understand all the work to get to it. We spend the whole first week there.

Ty Rushing/Central Iowa Ag Mag

It’s a team effort for the Millers when it comes to maintaining Emily’s show horse, Ronie. Emily’s mother, Kimberly, enjoys this opportunity to spend time with her youngest of three children.

She goes the Monday prior to the state fair.”

A lot of work and one-on-one time is what Emily credits to her recent run of success. She joked that taking care of Ronie, her Paint Strawberry Roan, is like being a parent, which in turn has

taught her about responsibility and sacrifice.

“It’s exhausting,” Emily said, “but it’s rewarding.”

Mother and daughter always work as a team for shows, and Emily said she couldn’t do this without her mom.

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Kenny Kennan “The soybeans are nothing special, average. The corn looks good, but it might not be as good as it looks.”

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BY MIKE MENDENHALL AND DAVID GIULIANI For Central Iowa Ag Mag

n the warehouse at Heartland Co-op in Prairie City, seed specialist Steve Uhe opened a large vine sack on a wooden pallet. He cupped his hands and scooped cereal rye seed out of the bag.

“There are more and more people using it,” he said as he sifted the cover crop seed through his hands. “As in any farming endeavor, there are the early adapters and the people that sit back. But I know every farmer is talking about it.”

Uhe said Heartland Co-op customers and Jasper County farmers in general seem to be part of the early adapters of cover crop usage in Iowa.

Cover crop has been used in the eastern part of the U.S. for more than a decade. It has been shown to stop soil erosion and act as a filter, catching farm runoff before it silts into nearby waterways.

“We were having real heavy rains, and people were having erosion issues,” Uhe said.

“So people were investigating ways to really slow that down.”

Uhe said if a farmer plants a rye, turnip or radish for three to five years, the added cover crop can reduce that pH level by allowing water down into the hardpan and increase cash crop yield.

For more than a half century, farmers have been encouraged to plant cover crops between growing seasons as a way to manage soil erosion, preserve soil fertility and quality, and help ward off diseases.

In Illinois and Iowa, known for their high-quality, deep topsoil, cover crops have rarely been used. That’s not the case in some other states.

16 Fall 2014

SAVING T

The use of cover crops is o

G THE SOIL

s on the rise in Iowa fields

Nationally, cover crops, which include cereal rye and clover, are planted only on a small fraction of farmland, but their use is increasing. From 2012 to 2013, cover crop acreage jumped by 38 percent nationally, Tom Kaspar according to a survey “Right now, we’re funded by the U.S. not doing enough Department of Agrito have an impact culture. on water quality In Iowa, 1.6 percent or water erosion,” of cropland is cover Iowa State University crop, said Tom Kaspar, an agronomy pro- agronomist says fessor at Iowa State University.

“We’re heading in the right direction, but slowly,” Kaspar said. “There’s a lot more interest than there was years ago.

I think the state of Iowa and commodity groups are putting a lot of emphasis on cover crops from the standpoint of reducing nutrient losses. Right now, we’re not doing enough to have an impact on water quality or water erosion.”

‘We need to use that time’

Mike Mendenhall/Central Iowa Ag Mag

Heartland Co-op seed specialist Steve Uhe presents a handful of cereal rye – a cover crop – in the organization’s warehouse in Prairie City. Cover crops are becoming more common in Iowa, as they have been proven to stop soil erosion, mitigate farm runoff and maintain soil nutrients in the winter season.

As it is, 60 percent of Iowa’s cropland is rented or leased, which may reduce the incentive to use cover crops, Kaspar said. Landowners, he said, need to understand the long-term benefits of such crops and then ask their renters to use them.

“We have seven months of the year when nothing is being grown,” Kaspar said. “We need to use that time.”

Even flat land is vulnerable to erosion, Kaspar said, as can be seen during the spring or after rainfall.

In other states, cover crops are more popular.

Jim Hoorman, a cover crop specialist and professor at Ohio State University, said such crops are gaining steam in Ohio, where state officials are advocating them. He ticked off the cover crop acreage numbers in a number of Ohio counties, a couple of which are closing in on 10 percent of farmland.

“You have the best soils in the world [in Illinois and Iowa],” Hoorman said.

“Guys are happy with their results. We have a lot less organic matter in our soils. We have a lot of heavy clay soils.

Guys are worried about compaction and soil structure.”

Even in areas with great soils, Hoorman said, the need for cover crops will eventually become evident.

CONTINUED ON 18

AG Mag

17

CONTINUED FROM 17

“At some point, they won’t have that soil,” he said.

“People who are really hurting try to find ways to make it better. Farmers who are struggling tend to find solutions.”

Farmers, he said, should know they can’t plant a cover crop for just one year and see benefits. It takes at least three years, he said.

Mark David, an environmental sciences professor at the University of Illinois, said cover crops are used more as “you get out of mainstream agriculture.”

“When I drive around Illinois, how often do I see green fields [after harvest]? Almost never,” he said. “Cover crops are not embraced.

“There is a cost to having a cover crop. You have to plant it. You have to kill it in the spring. You have to till it. It’s not something that happens for free. You may get some benefits like less erosion, but it’s hard to make the absolute argument that you should use it.”

It costs about $30 or $40 an acre to have cover crops, he said.

‘One of those chicken-and-egg things’ In Illinois, David said, farmers have a short window for planting cover crops, and they won’t see much growth if they are planted in November. They are easier to establish in central Illinois than either northern Illinois or Wisconsin, he said.

One hurdle for cover crops is that seed companies haven’t done much in the way of breeding them, said Kaspar of Iowa State.

“There’s no incentive or economics for the big seed companies to get involved in cover crops,” he said.

“Right now, we’re using whatever is available. The future of being able to use improved plants designed specifically to be cover 18 Fall 2014

Sarah Brown/Central Iowa Ag Mag

Cereal rye cover crops grow among rows of Swiss chard at Wimmer Farms in Arispe, Iowa.

Denny Wimmer said the quality of the soil on his farm improves yearly because of the cover crops. “You don’t have to fertilize as much,” he said. “It also adds organic mater to the soil, which is important and keeps improving the soils.” crops has a lot of potential that we’re not seeing today.

It’s one of those chickenand-egg things.”

At a recent conference in Des Moines, seed specialist Uhe spoke with farmers from Illinois and Indiana who have planted cover crops for 10 to 12 years who claim to have experienced increases of 20 to 25 bushels per acre in cash crop yield as a direct result.

Gordon Wassenaar, a corn and soybean farmer south of Prairie City, this fall will plant cover crops for a fourth time. Last year he planted 1,200 acres of cereal rye after the fall harvest. He said he did not invest in the crops to increase yield, but as a long-term solution to stop soil erosion.

“I didn’t do this expecting an overnight yield,” he said.

“That’s the one thing I’m certain of is that it has halted erosion.”

‘This is going to be the trend’ Along with its benefits, cover crops are an added

expense for farmers. Uhe said to plant the recommended 50 to 80 pounds per acre, cereal rye can cost $17 to $23 an acre, depending on market prices.

Mike Gannon, who farms corn and soybeans near Newton, works with Wassenaar. Both have used the crop to line waterways and cover row fields on their land.

Gannon said one of the challenges for cover crop users is the short planting window after the harvest.

At times, planters can have only days to get the cover crop into the ground before the first freeze. Wassenaar said it’s almost necessary to plant his cereal rye as he harvests his corn and beans.

“The logistics are the hardest part,” Gannon said.

“You’re already under a time crunch getting your cash crop harvested. So, getting a cover crop seeded in the fall and being timely about it is crucial. When you have to begin seeding, you literally have only days left in the growing season to get something started.”

Wassenaar and Gannon have been looking at different methods of cover crop planting, including planting before the harvest when they are not as crunched for time.

They are also looking at other added benefits for the soil. The farmers explained the importance for planters to understand the specific needs and soil contents of their fields in the coming decades. This knowledge will determine the type of cover crop used.

Gannon said certain cover crops have been shown to fight disease, mitigate weeds, and add targeted nutrients.

“I think learning how soil works and the biology of the soil is going to be really important over the next 20 or 30 years,” he said. “Cover crops are kind of a first step in that.”

“I think this is going to be the trend,” Wassenaar added. “If you go long term and restore the organic matter and increase the amount of water the soil can hold, that can be extremely critical.”

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AG Mag

19

‘Learning something new every day’ Jasper County’s new ag coordinator grows on the job

BY TY RUSHING For Central Iowa Ag Mag

Ty Rushing/Central Iowa Ag Mag

Allyson Parman is the new agriculture and horticulture program coordinator for the Iowa State University Extension and Outreach office in Jasper County. Parman graduated from ISU in May and began working at the extension a few weeks later.

Allyson Parman was naturally nervous when she started working for Jasper County’s Iowa State University Extension Office in May as the new coordinator of the agriculture and horticulture program.

In a matter of weeks, the 22-yearold went from walking across the stage at graduation, with her degree in agricultural studies, to walking into a office building and being tasked with figuring out the ag and hort needs for an entire county.

“They say in extension that it could take you over 1 year to feel comfortable in your job, and I believe that,” Parman said. “I’ve been on the job for about five months, and I’m learning something new every day.”

One of her first site visits involved an investigation of the health of a walnut tree, and in the time since things haven’t slowed down for her.

“I’ve had lots of interesting moments,” Parman said. “Tree calls are quite frequent, considering that Jasper County was diagnosed with emerald ash borer, but there is never a dull moment when you make house calls. People are very passionate about their trees and plants – and rightly so.

“I like getting out there and meeting new people, even though I’ve lived in this community my entire life, it’s always interesting when I go meet someone that I wouldn’t have had the opportunity to if I didn’t have this job.”

Parman’s job duties encompass many different areas and programs, which she said can be daunting.

“I think any job can be overwhelming at times,” Parman said. “For me, this job has been overwhelming because there is so much to know.

CONTINUED ON 21

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“Even when you feel like you may have a grasp on something, there is always something new to be explored.

“That’s what has been so overwhelming, because I always feel the need to know everything, and trying to soak up all the information is seemingly impossible at times.”

So far, her boss, ISU region 14 Director Nathan Crane, has been impressed the young coordinator’s efforts.

“Allyson has been building relationships with individuals and organizations in the agricultural sector,” he said. “She brings her passion for agriculture and Iowa State University connections to developing strong programming that meets local needs.”

This partnership sounds like a win-win.

“ISU Extension has become my home away from home after graduating from Iowa State,” Parman said, “and I’m thankful for the opportunities that it has given me.”

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Soybeans winning ...

for now Central Iowa Ag Mag file photo

Ron Gordon unloads soybeans from his 1710 Case combine near Creston in 2011 – the last year until 2014 that weather cooperated enough for farmers to produce decent yields in southwest Iowa.

Farmers reduce purchases as grain prices fall

BY DAVID GIULIANI For Central Iowa Ag Mag

Has the growing season met expectations?

In spades. And then some.

That’s thanks to nearly perfect weather during the growing season, with cool temperatures and rain at the right times.

That has meant a record crop, which means declining soybean and corn prices.

For now, the drop in the soybean price has not been as great relative to corn. So, many observers expect farmers to plant more acres of soybeans next year.

“There is that potential,” said Darrel Good, a retired agricultural professor from the University of Illinois. “The market will have to answer the question, Do we need more soybeans at the expense of corn this next year? If farmers were to plant today, the market calls for more soybeans. The question is, How will those prices change when the planting decisions are finalized?”

Soybeans, he said, are seeing great demand, part of which is seasonal.

“Whether that can be maintained or not depends on how the South American crop unfolds,” he said.

Dale Aupperle, president and founder of Forsyth, Illinois-based Heartland Ag Group, arrived at similar conclusions.

22 Fall 2014

Crop acreage A look at corn and soybean acreage in Illinois and Iowa (in millions): Corn Iowa Illinois 2014* ................. 13.2 ............. 12.0 2013 .................. 13.1 ............. 12.0 2012 .................. 13.7 ............. 12.2 Soybeans Iowa Illinois 2014* ................. 13.2 ............. 10.0 2013 .................... 9.2 ...............9.4 2012 .................... 9.3 ............... 8.9 * estimated Source: U.S. Department of Agriculture

“These things could change,” Aupperle said. “There is an acreage battle going on for farmers. For planting next year, soybeans look like they are winning the battle at this point.”

When corn prices went up, so did the cost of farm equipment, said Rock Katschnig, who has farmed in the Prophetstown, Illinois, area for nearly four decades.

“Suppliers wanted a piece of the pie,” he said. Now, that crop prices are down, “The suppliers don’t want to drop their prices.”

So how will farmers deal with the new circumstances?

Katschnig said they may look to reduce the amount of fertilizer on their crops. And

he said seed companies know that farmers will look for better prices on seed corn.

“We could save $20 or $30 an acre with certain seed varieties,” he said.

Seed giant Monsanto has already cut its profits forecast for next year. With corn prices down, the company told the media, it will be harder to raise seed prices, especially when farmers are expected to reduce corn planting next year.

John Deere is already reporting declining sales of farm equipment.

“From everything I can see, farm equipment sales are slowing down,” Good said.

“Farmers have made a lot of purchases the last couple of years. A lot of them are saying that there is no urgency to invest.”

Randy Faber, a farmer from Sublette, said soybeans look like the more profitable crop next year. But he said his contract with Pioneer, a seed company, will largely determine his crop rotation.

“The gross cost of putting in a soybean crop is a lot less than corn,” he said.

For Faber, a diversified portfolio helps.

He runs a cattle operation, which has benefited from low corn feed prices.

Starting in the cow-calf business now is a good move, he said, thanks to the highest prices he has seen for calves.

“There is record profitability,” Faber said. “[But] it’s ... a 365-a-day-a-year job.”

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Hillaker: Weather ‘way, way better’ for farmers in ’14

BY KYLE WILSON For Central Iowa Ag Mag

The combination of cool summer temperatures and timely rainfalls will likely produce record-breaking corn and soybean yields across the Ag Mag area for 2014.

Harry Hillaker, state climatologist in Iowa, said most farmers in southwest Iowa and northern Missouri benefited from persistent rains in June after crops were planted. August was also friendly to farmers, as they received 6 to 14 inches of precipitation.

“The weather for this growing season was way, way better than the previous two years,” Hillaker said. “But, 2012 really isn’t too hard to beat.”

Severe drought conditions the past two years depressed yields, with 2012 being Iowa’s worst corn production year at 137 bushels per acre.

“2012 was the worst – by far,” Hillaker said, “but rainfall this year replenished soil moisture Harry across Hillaker Iowa.

That was much needed. The only exceptions to that are in far northwest Iowa and far eastern Iowa where they didn’t receive as much precipitation.”

Farmers did benefit from cool temperatures throughout the growing season, especially during July – considered a critical month for crop maturity. Hillaker said temperatures were below normal in every month except for June in southwest Iowa.

CONTINUED ON 25

This chart shows long-range weather predictions made by Farmers’ Almanac for temperature and precipitation in Iowa from November 2014 through October 2015.

CONTINUED FROM 24

Tracey Cameron, agronomist for Taygold Cooperative in Clearfield and Lenox, said he’s been recording data for 37 years, and some of the “big crop years” like in 2004 and 2009 were aided by cool summer temperatures.

“Cool summers are less stressful on the crops and allow the crops to recover and grow in the evening to make yields,” Cameron said.

2015 predictions Farmers’ Almanac’s long-range forecast for the heartland shows warmer-

than-normal temperatures for April and May. Summer months should be hotter and drier than normal, with the hottest period in mid-tolate June and July and most of August, the forecast says.

September and October are expected be slightly cooler than normal, with above-normal rainfall in the Midwest.

Hillaker said National Weather Service is predicting temperatures being close to normal in the Midwest for 2015. He added that NWS has made no predictions regarding precipitation for next growing season.

“Regardless, the good news

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The 2014 harvest started in late September with most area farmers running beans by the beginning of October. heading into next year’s growing season is farmers will enter with plentiful soil moisture,” Hillaker said.

“That moisture isn’t going

anywhere between now and next year. They’re certainly going to head into next year much better off than the past two years.”

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25

Maytag Blue: A family farm tradition

Since 1941, cheese made the old-fashioned way

BY KATE MALOTT For Central Iowa Ag Mag

Photos submitted

Maytag Blue Cheese is made at the Maytag family farm and cheese plant just a mile north of Newton. E.H. Maytag, son of Maytag Corp. founder Frederick Louis Maytag I, built a dairy to produce milk for the family and company in 1919. The family farm and business belong to the Maytag family. The first wheel of Maytag Blue was formed in October 1941, after the Maytag brothers worked with researchers at Iowa State University to develop a process using cow’s milk instead of traditional sheep’s milk. Today, it’s considered by critics and chefs as one of the best cheeses in the world.

An old white farmhouse sits off a gravel road just a mile north of Newton, and behind it you will find an established cheese plant that produces some of the most highly regarded cheeses in the country.

The family farm belongs to the Maytag family, which owns the business today.

It was in 1919 when E.H. Maytag, son of Maytag Corp. founder Frederick Louis Maytag I, built a dairy to produce milk for the family and company, and to be delivered to the doors of locals.

CONTINUED ON 27

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Maytag Blue Macaroni and Cheese 3 T. butter 3 T. all-purpose flour 3 c. milk 1/2 lb. crumbled blue cheese 2 egg yolks, beaten Dash hot sauce (recommended: Crystal) Salt, paper 1 lb. small pasta shells, cooked until al dente 1 c. fine dried bread crumbs 1 T. olive oil Preheat the oven to 400 degrees F. Grease a large shallow baking pan with 1 teaspoon of the butter.

In a medium saucepan, over medium heat, melt the remaining 3 tablespoons of butter. Stir in the flour and cook for 2 minutes. Whisk in the milk, 1/2 cup at a time. Season with white pepper. Cook, stirring constantly for 4 to 6 minutes.

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CONTINUED FROM 26

F.L. Maytag II, whom locals simply called Fred, along with brother Robert, collaborated with researchers at Iowa State University to further the dairy farm business by enhancing their facility. They adopted the use of cow’s milk instead of traditional sheep’s milk to make blue cheese, and on Oct. 11, 1941, the first wheels of Maytag Blue Cheese were formed.

“The same hand-crafted, carefully aged process perfected more than 70 years ago is the same process used today,” tour guide Travis Padget said.

The milk comes from local cows each morning, specifically Holsteins, which produce a thicker, sweeter product.

Upon arriving at the plant, the milk is tested for quality and to make sure it is antibiotic free. The milk is pumped into a large vat, where enzymes and cultures are added to later create mold and the blue effect. Workers stir the milk for about 4.5 hours, until the whey and curds separate. Then it’s “time to hoop,” workers say.

An eighth-inch hoop barrel is manually scooped into the mixture to create the round wheel of cheese, and then it is sent to the table room to salt and sit overnight.

Once it sets, each wheel is rolled into a machine that punctures it about 100 times. That allows air into the cheese, which helps the culture to grow and turn into a blue mold. Then the cheese is sent into a cave.

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Tour guides tell the history of the Maytag Dairy Farm during a Harvest Party on the farm in Newton. Many locals were given the opportunity to see the cheese-making process and see the cheese-makers at work. a cave, along with thousands of others. Four caves are at the Maytag Dairy Farm. Once the cheese is ripe, workers wash, smudge and wax each wheel before it is hand wrapped in silver foil.

“It was very interesting,” first time visitor Mike Letcham, of Newton, said of the cheese-making process. “To have this made in our town is very neat, and that it’s hand done with nearly no automation is really something. It’s very impressive.”

Maytag Dairy Farms are famous for Maytag Blue Cheese, and many consider it the best in the country, if not the world. The perfected, delicate and patient artisan process is at the top of its industry.

The farms are well known for blue cheese, but they also make a variety of other cheeses, such as Cheddar, Swiss, White Cheddar, Edam and Muenster.

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27

Muddying the waters?

Farmers say new EPA rule poses more questions, few answers

BY MIKE MENDENHALL For Central Iowa Ag Mag

On April 21, the U.S. Environmental Protection Agency proposed the Waters of the U.S. rule that the agency says is an attempt to better define federally protected waterways under the 1972 Clean Water Act. What followed, and continues, is backlash from the agricultural community, which has collectively said the rule seems to bring less clarity about what is a protected waterway – and could undermine current farming and conservation practices.

The American Farm Bureau Federation began its “Ditch the Rule” campaign after the rule was proposed. Craig Hill, president of Iowa Farm Bureau, said the rule could allow any standing or pooling water on farm fields be declared a federally protected waterway subject to inspection.

CONTINUED ON 29

In the photo Prairie City Wastewater Treatment facility operator Chris Clark checks filtering tanks during a public tour of the newly constructed plant. The facility helps to keep the small city proactive on new EPA regulations and DNR inspections. Under a new EPA rule released April 21, farmers may be subject to similar regulatory scrutiny with waterway discharge. (Photo by Mike Mendenhall for Central Iowa Ag Mag)

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Hill, a farmer from Warren County, said the industry was willing to comply with the Clean Water Act in its current form, and strives for clean waters with minimal farm runoff and discharge. But he worries the proposal could prevent farmers from applying fertilizers and employing current conservation practices such as building buffer zones and terraces.

The federal act allows the EPA to regulate bodies that are designated as federal waterways, which currently are defined as navigable waters, wetlands and seas.

But industry professionals like Hill are concerned that the new rules give the federal agency broad enforcement powers. Farmers interpret the 371-page, 107,868-word document to not only expand regulations but redefine what is considered to be a federally protected waterway.

Hill said that industrial manufacturers and cities have already been hit with stricter regulations, but they can apply for federal waivers to operate wastewater treatment facilities or conduct landscaping projects near waterways. These permits – costing $20,000 to $30,000 for a two-year permit – are difficult for family and midrange farming operations to afford, he said.

“As farmers, if they have to build a terrace, build a pond, or line a waterway on their property with grass, it’s at our own expense,” Hill said. “To dig it, seed it, or do things you would do to con-

‘‘

’’

As farmers, if they have to build a terrace, build a pond, or line a waterway on their property with grass, it’s at our own expense. To dig it, seed it, or do things you would do to control water movement, under the new rule that is an illegal act.

Craig Hill, Iowa Farm Bureau president

trol water movement, under new rule that is an illegal act.”

EPA Administrator Gina McCarthy published a response Sept. 29 on Huffington Post to defend her agency’s efforts. She wrote that clean waterways is an economic issue as much as environmental.

“We know clean water is a health priority, but it’s also an economic necessity,” McCarthy wrote. “Our communities, schools, businesses, and farms can’t run without it. A cleaner Boston Harbor has meant higher property values, more shipping, and more jobs. In 2012, more than 50,000 jobs in Boston were tied to port activity – from cargo and seafood processing to cruises and harbor tours. To have clean water downstream in our rivers and lakes – and enjoy the economic growth clean water brings – we need healthy headwaters upstream.”

On its “Ditch the Myth” website, the EPA responds to the Farm Bureau.

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But the uncertainty the rule puts in the minds of ag professionals is driving the protest.

John Lawrence is the associate dean for agricultural and natural resources extension outreach at Iowa State University, which last month submitted public comments for the new water rule. Ag educators see a more regulatory role for the Natural Resources Conservation Service if the rule is enacted.

“It changes the role for them,” Lawrence said. “It was never supposed to be a regulator. If a farmer builds a terrace or does something on their land for conservation purposes, does the

NRCS have to approve it?

What if the NRCS does not work with the contractor who built the terrace or waterway buffer strip? Do I have to have NRCS come out and sign off? They likely wouldn’t sign off unless they design it.”

Lawrence said EPA rules typically articulate what farm professionals cannot do, but the WOUS outlines 56 items farmers cannot do on their lands. Lawrence said this is what generates the uncertainty.

The public comment period for the rule was extended in early October to Nov. 14, giving individuals, companies and education institutions more time to weigh in on the potential effects.

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For Iowans, by Iowans New frozen food company sells to, buys from Iowans only

BY TY RUSHING For Central Iowa Ag Mag

Ty Rushing/Central Iowa Ag Mag

Iowa Choice Harvest is a frozen-food company that uses produce from Iowa and is sold only in Iowa. The company is looking to partner with more Iowa farmers so that it can expand its product line. ICH frozen Iowa sweet corn and apples can be found in all Fareways in the state, select Dahl’s, Hy-Vee and Hometown Foods stores, as well as some independent retailers.

Living longer doesn’t have to mean getting “old”

Iowa Choice Harvest is a company created by Iowans, for Iowans and focused on using produce that is grown in Iowa.

The Marshalltown company’s goal is to make Iowa sweet corn and Iowa apples widely available year-round in a convenient, quick-frozen format.

“We are 100 percent from Iowa,” said Penny Brown Huber, chief executive officer of ICH. “We had the intention of starting out to be a local food company.”

ICH, which has been in operation for a little more than a year, took 7 years to plan. And now, Huber said, ICH is looking to grow its product line and partnerships.

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ISU project featured at Iowa Hunger Summit Iowa State University

An Iowa State University project designed to help communities build their capacity to produce, process and distribute food was featured at the Iowa Hunger Summit that is part of World Food Prize activities.

Carl Rogers and Nadia Anderson, co-directors of ISU Community Design Lab (CDL), and Courtney Long, Design Fellow at CDL and the Leopold Center for Sustainable Agriculture, presented a workshop about their new “Agricultural Urbanism Toolkit” during the Iowa Hunger Summit on Oct. 14 at the Downtown Marriott in Des Moines.

The World Food Prize Foundation established the summit in 2007 to bring together community organizations, business and industry, state and local government, social agencies, churches and religious communities, schools and other groups that participate in

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Huber said the company hopes to expand its frozen offerings to include asparagus, carrots and rhubarb.

To do so, it is looking for growers who use more than one acre of land to produce those products. Huber said the company would welcome adding more local farmers to the fold.

“I’d love to hear from them,” Huber said of local growers.

ICH – which is headquartered in Ames, but has a processing facility in Marshalltown – uses only Iowa growers for its supplies.

Huber said that any farmer interested in partnering with the company should email her at pbrownhuber@iowachoiceharvest.com By partnering with ICH, farmers get a consistent buyer, help to market themselves, and ensure that their

projects to confront hunger.

The CDL, a partnership between Iowa State University College of Design and Extension and Outreach, has been working with community leaders in Cedar Rapids, Cresco and Des Moines as part of a 2014 research grant from the Leopold Center.

The Agricultural Urbanism Toolkit is a process to set common goals related to the local food system, and to create or connect existing tools, such as school gardens, urban farms, food hubs, mobile markets and farmers markets, to accomplish those goals.

Long said the afternoon workshop will be one of the group’s first presentations of the Agricultural Urbanism Toolkit, which she hopes will become a resource for other Iowa communities. The CDL also is developing a booklet of best management practices and how each tool, such as a community garden, fits into a local food systems.

food is going from Iowa soil to Iowa dinner tables, according to the company.

The initial success from the apples and sweet corn has been key to ICH’s decision to diversify its product line.

Asparagus and carrots are in high demand because people really love those products, Huber said, and more schools are seeking to introduce fresh fruits and vegetables into meal plans, thanks to federal guidelines.

To keep its products as natural as possible, ICH adds no additional sodium or sugar, Huber said.

Huber said ICH has no plans to expand nationally anytime soon; the main goal is to become widely available in every market in Iowa.

ICH can be found in all Fareways in the state, select Dahl’s, Hy-Vee and Hometown Foods stores, as well as some independent retailers.

Index of Advertisers Ag Yield ............................................................... 10 Agrivision ............................................................ 19 Bank Iowa ........................................................... 15 Baxter Oil Company ............................................ 4 Brooklyn Elevator-Rohrer Bros ....................... 27 Bruce Keith Trucking ....................................... 28 Central Iowa Water Association ...................... 26 Clemon-Maki Insurance ................................... 13 Farmers National Company................................ 3 First Newton National Bank ............................ 24 First State Bank-Sully........................................ 28 Hawkeye Stages ................................................. 21 I-80 ...................................................................... 29 Iowa Family Farms ............................................ 27 Iowa Family Farms Transportation ................ 20 Iowa Grain Systems ........................................... 24 JWT Action ......................................................... 32 Kane Welding & Supply .................................... 13 Key Cooperative ................................................. 12 Killduff Feed & Grain ...................................... 14 Konek, Kurt J, CPA ........................................... 30 Lowry Seed Sales ................................................11 Marshall Co Farm Bureau ................................ 29 Marshalltown CVB ............................................ 14 McCall Monument ............................................ 24 Midwest Bio ........................................................ 20 New Century FS .................................................. 5 Newton Health Care Center ............................. 24 Newton Village ................................................... 29 O’Grady Chemical Corp .................................... 9 Park Centre ....................................................... 30 Pella Motorworks ............................................... 12 Pella Motorworks ................................................ 8 Rotary Airlock .................................................... 23 Shawn’s Hay Grinding ....................................... 5 S.I. Distributing/Kelner ..................................... 25 Sinclair Tractor ................................................... 2 Stayner Agency Inc ........................................... 30 Sully Farm Supply Inc ...................................... 15 Tama County Mutual Insurance ..................... 21 Tama Livestock Sales ........................................ 30 ........................................... 25 Willowbrook ....................................................... 27 AG Mag

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