western edition
country-guide.ca
February 3, 2015 $3.50
how good a business leader are you? take our test pg. 18
Focus on Leadership
james Reesor is shaping RFW farms for sustainable success Pg. 22
+PLUS Are non-farm investors taking over? ottawa doesn’t know CROPS GUIDE these pulse crops may be 2015’s biggest winners Publications Mail Agreement Number 40069240
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Contents
february 3, 2015
BUSINESS 9
options in a bear market If there was ever a market when it makes sense to invest in high-quality put options, our Errol Anderson says this is it.
12 land grabbers
Are non-farmers buying huge chunks of Canadian farmland? As Gerald Pilger reports, no one actually knows, not even in Ottawa.
16 would your farm business benefit from an advisory board?
Here’s why it might, and how to get started.
18 are you a good leader?
Your farm needs world-class leadership like never before. How do you measure up? Answer our five questions and see.
26 Top Board Performance
Here’s how the Western Canadian Wheat Growers runs a board of farmer-directors that impresses friends and opponents alike.
30 the first egg
These Canadian egg producers are using their leadership and farm skills to make a real difference.
32 Guide HR — happiness is so good for business
If you don’t think happiness and business have to go together, then it’s time to let Pierrette Desrosiers get us all smiling.
33 ‘my’ farmers
A Saskatchewan writer goes in search of Canada’s real farmers. What are the odds that you’re in her book?
38 farm failures
Big bankruptcies make big headlines, but many smaller farms are under pressure too.
42 to the south pole and back
A modified MF-5610 and its crew retrace Sir Edmund Hillary’s incredible 1958 expedition to the Antarctic.
PG. 22 focus on where you can lead When James Reesor, CEO of RFW Farms thinks business, he thinks about building high-performance teams and managing the details. It’s an approach that has grown RFW into one of Ontario’s top swine operations. Now, Reesor shares the strategic vision that is leading RFW to growth and success.
46 the right image
More farmers across Canada are taking charge of their image, for the good of their farms and the good of the industry.
62
CROPS GUIDE
g uide life — time-saving meals for busy families
We ask chef Tony Mancini how he’d cook for today’s hectic farm lifestyles. Try these recipes in your kitchen.
EVERY ISSUE
50 the ultimate n rate for canola
The best way to set nitrogen rates is still the soil test.
52 winning pulses
Soybeans aren’t the only legumes worth looking at in 2015!
54 the mechanics of straight cutting canola 6 MACHINERY GUIDE
Efficient spraying is getting even more crucial to crop success.
61 GUIDE HEALTH
To limit risk of falls, use benzodiazepines as directed.
64 HANSON ACRES The men are worrying what Elaine will say, as they should!
When should you go straight cut? When should you swath?
56 lab on a chip
New technology brings science to the field, with fast results.
59 better, not bigger
How many acres must you crop? Precision farming can tell you.
Our commitment to your privacy At Farm Business Communications we have a firm commitment to protecting your privacy and security as our customer. Farm Business Communications will only collect personal information if it is required for the proper functioning of our business. As part of our commitment to enhance customer service, we may share this personal information with other strategic business partners. For more information regarding our Customer Information Privacy Policy, write to: Information Protection Officer, Farm Business Communications, 1666 Dublin Avenue, Winnipeg, MB R3H 0H1. Occasionally we make our list of subscribers available to other reputable firms whose products and services might be of interest to you. If you would prefer not to receive such offers, please contact us at the address in the preceding paragraph, or call 1-800-665-1362.
february 3, 2015
country-guide.ca 3
desk EDITORIAL STAFF Editor: Tom Button 12827 Klondyke Line, Ridgetown, ON N0P 2C0 (519) 674-1449 Fax (519) 674-5229 Email: tom.button@fbcpublishing.com Associate Editors: Gord Gilmour Cell: (204) 294-9195 (204) 453-7624 Fax (204) 942-8463 Email: gord.gilmour@fbcpublishing.com Maggie Van Camp (905) 986-5342 Fax (905) 986-9991 Email: mvancamp@fbcpublishing.com Production Editor: Ralph Pearce (226) 448-4351 Email: ralph.pearce@fbcpublishing.com ADVERTISING SALES Dan Kuchma (204) 944-5560 Cell (204) 290-5419 Email: dan.kuchma@fbcpublishing.com Lillie Ann Morris (905) 838-2826 Email: lamorris@xplornet.com
Tom Button is editor of Country Guide magazine
Leading from the front “Most bad decisions get made in good times.” We’ve all heard it, and most of us have said it. Except I’m not sure I believe it. I see precious little indication that farmers have been making bad decisions during the past five years. At Country Guide, we’ve been keeping our eyes open for signs of flawed decision-making, not so much because we’re looking for something sensationalistic to write about as because, like you, we’ve been fascinated by the transformation of agriculture since the millennium. We agree too that if there’s something that agriculture is generally bad at, it’s talking about failure, so if there is widescale failure looming on the horizon, we should be seeking it out, holding it up to the light and studying it. But I see no evidence of it. I’ll trust you to let me know if you disagree, because I do sometimes hear from worried farmers and from farm accountants who fear, for instance, that too many farmers have invested too heavily in machinery, or that instead of paying down debt in the last five years they have been lured into paying topof-the-market land prices. There undoubtedly is some of this going on, but what I mainly see is a generation of farmers who have a very shrewd idea of what they can afford and what they can’t, and who have added impressively to their sustainability through the recent bull market. 4 country-guide.ca
That sustainability doesn’t mean that our farm sector is going to stop evolving, however. Instead, because we have a cadre of farmers with resources to invest, and with more sophisticated financial skills than ever before, this evolution has already been set in motion. We just haven’t really seen it yet. The difference this time is, our evolution isn’t being driven because other farms are falling by the wayside. While that may have accounted for a good bit of agriculture’s evolution in the last 40 years, today it is being driven by farms that don’t just make good decisions. They make great ones. When Cornell University’s Bob Milligan told associate editor Maggie Van Camp this issue that “The progression from worker to manager to leader is the new challenge for farms,” I found myself nodding, and I think you will too. The more I ponder it, the more I agree. Every neighbourhood I know has a small handful of farms that are staggeringly capable, and that are fired with a deep desire to grow. That doesn’t mean I think there will be five One Earths farming all of Canada. But it does mean that the idea from the 1990s that agriculture is becoming doughnut-shaped, and you either have to be very big, or very intensive, is likely to return. In a way, it’s what this issue of leadership is all about. Are we getting it right? Let me know at tom.button@fbcpublishing.com.
Head Office: 1666 Dublin Ave., Winnipeg, MB R3H 0H1 (204) 944-5765 Fax (204) 944-5562 Advertising Services Co-ordinator: Sharon Komoski Fax (204) 944-5562 (204) 944-5758 Email: ads@fbcpublishing.com Designer: Jenelle Jensen Publisher: Lynda Tityk Email: lynda.tityk@fbcpublishing.com Associate Publisher/Editorial Director: John Morriss Email: john.morriss@fbcpublishing.com Production Director: Shawna Gibson Email: shawna@fbcpublishing.com Circulation Manager: Heather Anderson Email: heather@fbcpublishing.com President: Bob Willcox Glacier FarmMedia Email: bwillcox@farmmedia.com Contents of this publication are copyrighted and may be reproduced only with the permission of the editor. Country Guide, incorporating the Nor’West Farmer and Farm & Home, is published by Farm Business Communications. Head office: Winnipeg, Manitoba. Printed by Transcontinental LGMC. Country Guide is published 13 times per year by Farm Business Communications. Subscription rates in Canada — Farmer $41 for one year, $61 for 2 years, $87 for 3 years. (Prices include GST) U.S. subscription rate — $35 (U.S. funds). Subscription rate outside Canada and U.S. — $50 per year. Single copies: $3.50. Publications Mail Agreement Number 40069240. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.
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Call toll-free 1-800-665-1362 or email: subscription@fbcpublishing.com U.S. subscribers call 1-204-944-5766 Country Guide is printed with linseed oil-based inks PRINTED IN CANADA Vol. 134 No. 2 Internet address: www.agcanada.com
ISSN 0847-9178 The editors and journalists who write, contribute and provide opinions to Country Guide and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis. However, the editors, journalists, Country Guide and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as Country Guide and Farm Business Communications assume no responsibility for any actions or decisions taken by any reader for this publication based on any and all information provided.
february 3, 2015
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Machinery
By Ralph Pearce, CG Production Editor
It’s already February and the itch to get into the shop and get things ready to put some seed in the ground is growing a little stronger every day. On many farms, the job that comes first, however, is spraying. Increasingly, this a job where it’s important to control the controllable and take full advantage when conditions are right. As the growing season beckons, we provide a glimpse below of the latest in self-propelled sprayers, including product launches and some interesting upgrades among the five manufacturers featured. As always, it will pay to do some serious homework before making your final choice.
Hardi Alpha evo 4100
Hagie STS 2015
A well-known name in pull-type sprayers, Hardi has made the leap into self-propelled technology with the introduction of its new Alpha evo 4100, launched last August. The SP market has high expectations in performance, reliability and comfort, and Hardi’s first entry is a nimble sprayer design, yet one that’s engineered for the rigours of spraying season. The Alpha evo strikes a good front/rear balance and boom widths of 90 to 118 feet, while its lighter weight offers an optimal weight:capacity ratio and great performance under a wide range of conditions. Its ground clearance can be set from 47 to 59 inches, which translates into more adaptability, and its EcoDrive system and a new TDC 6.1 Tier 4i 245 horsepower engine offer more power flexibility and better fuel consumption with a quieter ride.
The changes that Hagie has made to its STS design from 2014 may not appear to be all that big a deal — at first. Yet the company promises more for the farmer, including operational comfort, system performance and overall productivity. Operator comfort has become a huge issue in the past few years, with equipment manufacturers investing more in research into how to help operators keep fresh and alert during those long days, and Hagie is following that trend. They’ve added more comfort, from the suspension on the sprayer to the height of the seat in the cab. They’ve even created a hands-free door opener for added safety. Hagie has also upgraded the fuel-fill option to reduce fill time. When loading product, there’s a check valve-style fill system, plus an enhanced fill capacity — capable of more than 300 gallons per minute — and booms up to 132 feet.
www.hardi-us.com
www.hagie.com
6 country-guide.ca
February 3, 2015
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For complete offer details, see your retailer or visit powerfulcombination.ca *Heat® WG is also an eligible product. *The Roundup Transorb® HC, HEAT and DISTINCT offer off-invoice discount acres will be calculated using the following label rates: One case of Heat® LQ = 80 acres (jug of Heat® LQ = 80 acres), one case of Heat® WG = 640 acres (jug of Heat® WG = 80 acres), one case of Distinct® = 80 acres (jug of Distinct® = 40 acres), Roundup Transorb® HC 0.67L = 1 acre (10L = 15 acres, 115L = 172 acres, 450L = 675 acres, 800L = 1,200 acres). ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Tank mixtures: The applicable labelling for each product must be in the possession of the user at the time of application. Follow applicable use instructions, including application rates, precautions and restrictions of each product used in the tank mixture. Monsanto has not tested all tank mix product formulations for compatibility or performance other than specifically listed by brand name. Always predetermine the compatibility of tank mixtures by mixing small proportional quantities in advance. Roundup Transorb® is a registered trade-mark of Monsanto Technology LLC, Monsanto Canada, Inc. licensee. AgSolutions® and DISTINCT are registered trade-marks of BASF Corporation; and HEAT and KIXOR® are registered trade-marks of BASF SE; all used with permission by BASF Canada Inc. MERGE® is a registered trade-mark of BASF Canada Inc. © 2014 Monsanto Canada, Inc. and BASF Canada Inc.
John Deere R4045 More power, more capacity and higher application rates are just three of the upgrades that come with the R4045, John Deere’s latest addition to its 4-series sprayers, and a replacement for the 4940 model. Deere has taken what it believes to be the next step in sprayer design — from a 346 horsepower Final Tier 4 PowerTech engine to a 1,200-gallon solution tank and 90-, 100- or 120-foot booms and application rates of up to 230 gallons per minute. That’s an increase in performance and efficiency, with the goal of improving production. Of course, Deere has also put a lot of thought into operator comfort, adopting the same premium CommandView II Plus cab options as the R4030 and R4038. That means more space in the cab, more glass for improved visibility and a high-backed ComfortCommand seat and CommandArm for more comfortable, finger-tip control.
www.deere.ca
New Holland Guardian SP.400F New Holland remains the “out-front” leader in self-propelled sprayers, especially now that it has completed its acquisition of Miller-St. Nazianz and its revolutionary front-boom design. Now the company is celebrating last June’s introduction of its new Guardian SP.400F model, boasting what it deems the “highest-capacity sprayer” in the industry. Also with a Tier 4B engine, the SP.400F offers excellent ground clearance, a smooth ride plus tank sizes ranging from 1,000 to 1,600 gallons and boom widths up to 120 feet. As with all Guardian sprayers, the SP.400F comes with the standard four-wheel hydrostatic drive, plus an option for a four-wheel crab steering configuration for easier handling on side hills and a reduction in wheel-track damage to crops. The unique hydraulic suspension system also provides a superior ride, while the cab design maximizes operator comfort.
www.agriculture.newholland.com
Norac Hybrid Mode spray height control It may not be a self-propelled unit, but the Norac Hybrid Mode spray height control system just received a patent for use in the U.S. and Europe, and it’s promoted as a controller that will improve sprayer efficiency. The Hybrid Mode is Norac’s latest in-crop spraying feature, and is available on the company’s UC5 and UC4.5 spray height control systems to provide automatic control of a sprayer’s operation. That means operators no longer have to take manual control of the boom while spraying lodged, thin or uneven crops. The system can simultaneously track both crop canopy and the soil surface, then calculate the virtual “top of the crop,” providing more accurate control. It also reduces errors in adjusting boom height and it increases stability in the boom, thereby boosting the percentage of time the boom is at target spray height.
www.norac.ca
8 country-guide.ca
February 3, 2015
business
options in a bear market If you’ve been leery of high-quality put options, Errol Anderson wants to change your mind By Gord Gilmour, CG Associate Editor
We’ve all seen it. Grain markets can take on narratives that uncouple them from the basics of supply and demand.
We’ve just been through a historic bull market in grains, one that’s likely to be talked about for years. And now we
A bull market can charge forward, horns thrust in the
appear to be entering a bear market. Some analysts are
air, and it can generate a level of excitement and pric-
resisting the notion, expecting a quick bounce-back in
ing that sellers love, but privately marvel at. It’s heady,
prices. Others are quietly suggesting it looks like some pain
it’s optimistic, it’s confident, and it’s often irrationally
is just down the road. Still others are fearful that this could
exuberant.
be a grinding bottom that goes on a while.
To sellers like farmers, a bear market isn’t nearly as
As part of our ongoing marketing series, Country Guide
much fun. It can go crashing downwards, seemingly ignor-
spoke recently with Calgary-based market adviser Errol
ing all the underlying demand as it roars, swipes and
Anderson, who took us through some of the ins and outs of
mauls its way through the numbers, feeding on fear, panic
understanding bull and bear markets, how they work, and
and eventually capitulation.
strategies for finding success in both.
COUNTRY GUIDE: Everyone understands a bull market is one that’s generally trending up, and a bear is one that’s either falling or bouncing along the bottom. What else do we need to really get our heads around? Errol Anderson: One of the most important things to understand is how their lengths and shapes tend to vary. Bull markets simply aren’t as long as bear markets. On average, markets are in bull territory about a third of the time, and bear territory about two-thirds of the time. Markets that are bullish typically have a spike top, so if you’re looking at a chart, prices can streak upwards to a frenzied peak in the final stages of a bull market, then they can go almost straight down. The example everyone is looking at right now is oil, which climbed up to about $100 in early summer and then sank below $50 over a matter of a few months. Then, when a bear hits bottom, it develops a long U-shaped trough, and it doesn’t tend to quickly spike back up. Farmers can get caught up in both equally. When it’s a bull, a natural tendency is to wait for even higher prices, but many wait too long. Prices peak, but then the ride down is very quick. And when February 3, 2015
prices are depressed and at times below the cost of production, I think there’s a tendency to expect them to recover back to past levels, and unfortunately, because of what we know about the length of bear markets, that doesn’t usually happen. So sometimes farmers tend to miss opportunities to price crop well above average prices, hoping for better later. I think analysts like us and other market advisers are frequently seen as pessimists because of this, but really what we are is risk managers. It’s because bull markets just simply have a much shorter shelf life. And that reality must be respected by any producer of raw commodities. If a farmer is trading in commodities, it should be for business risk management purposes. Certainly there are speculators in the market, but farmers should be cautious not to increase their speculative risk within their business. They’re Continued on page 10 country-guide.ca 9
business Continued from page 9 already speculating heavily on agricultural commodity prices every time they plant a crop. They and their advisers should be looking for opportunities to price crops profitably, and those opportunities will appear, in any market. If you can understand how these markets are structured, how they differ in their behaviour and psychology, you can begin to plan your marketing strategy.
CG: Tell us more about that — what would these strategies look like? EA: At their heart, they’re going to revolve around using market tools to manage risk. In a bull market, you want to avoid missing the opportunity to price your crop well above the average because you’re waiting too long looking for the market peak. In a bear market, you want to likewise capture good opportunities, but market recoveries in a bear market lack the firepower of a bull market. Whether it’s a bull or a bear market, leaving your emotions and ego out of a decision is a key price management strength. In a bear market, for example, you might hope prices will go higher, but you can’t know that. You may, however, have a profitable pricing opportunity right in front of you that you don’t want to miss. So one strategy that you might consider is to pull the trigger and sell the grain, thus locking in that profit. Then you can turn around and purchase a call option which can reopen your price ceiling after the cash grain is sold. A call gives you the right, but not the obligation, to purchase a futures contract at a predetermined strike price for a later date. By selling cash grain, you inject cash flow, while call option ownership offers you the ability to participate in market upside if it happens later. In a bull market, you can also guard market downside risk if you decide to continue to store your unpriced grain in an effort to speculate on even higher cash prices. The tool I like in this circumstance is a put option, which is the right, not the obligation, to sell at a predetermined time and strike price. A strategy I’m supportive of is a “scaled-in” put buying program. Farmers may scale in puts as the futures climb, and as those prices climb, the put premiums will decline in value, until that market begins to fall. As the futures decline, these put premiums spring back to life and essentially act as price insurance. A key advantage of this tool is that there is no risk of margin calls. But if the market simply doesn’t break, these put premiums can expire worthless. To be honest, we’ve lost clients over expired put premiums, but in this case, cash grain prices held up and the grain was sold very profitably. The cost of the puts is simply a cost of risk management — like an insurance premium. CG: Is the best available option a commodity account then? Aren’t there other options? EA: There are many cash grain contracting alternatives that can mimic the power of a commodity trading account. There are tools like deferred futures contracts from local grain buyers that can tie in call options, for example. But the decision may be one of simplicity or flexibility. Cash contracts offer simplicity since the farmer won’t have to open a commodity trading account. But a cash contract is also rigid and binding, tied to the delivery of the grain 10 country-guide.ca
Nothing can beat a commodity account for flexibility, in my opinion. There is no commitment for grain delivery and options contracts can be easily entered and exited through the life of grain ownership and beyond. So there is a place for both cash contracts from grain buyers and a commodity trading account in a farm pricing program. It really comes down to the individual grower, their appetite for market involvement and the need for pricing flexibility. Someone who doesn’t really enjoy following the markets and keeping informed may be more drawn to these cash tools. But for a more sophisticated marketer, who actually enjoys following the markets and understanding them, I think they would be well served by using a commodity account and that array of tools.
CG: The two most common tools are futures contracts and options contracts — calls and puts. Can you run us through how they differ and where they fit? EA: A futures contract is exactly what it sounds like. You’re buying or selling a standardized lot for a price agreed upon today for future payment and delivery. So a July canola contract, for example, will be priced and bought or sold today, for the right to deliver or take delivery six months from now. They’re popular with people who have a fairly high risk tolerance, and in my experience, they take good nerves and a lot of discipline. Futures contracts are very volatile. Using the futures market outright, for a beginner, can be much like climbing into a Formula 1 race car and not truly understanding just how much power is actually under your feet. Typically they’re bought on margin, with a market participant being responsible for maintaining a minimum margin requirement. If you’re trading futures, you will be exposed to potential margin calls. So let’s say you purchased a canola futures contract to reopen your price ceiling after you sold the physical cash canola, but futures drop. You may get a margin call to top up your trading account. The broker will request funds be wired or bank transferred immediately. If this situation would make you lose sleep at night, then you’re a candidate to trade options or simply use cash contracts. Margin calls are inevitable if you trade the futures outright, so it’s a risk tolerance question. That’s where the nerves and discipline come in. An option is also exactly what it sounds like. You’ve only got the option, not the obligation. You’re basically buying or selling the option to buy or sell at a certain strike price. Some farmers will own both put and call options, but for different reasons. They may own puts to guard the downside on unpriced grain, and own call options for grain that has already been priced. That’s where the flexibility comes in and it can be quite rewarding in a farm marketing plan. For example, you think there’s a risk the market could fall, and you scale in put options throughout the run-up in the market. Once the market peaks and begins its descent, put options regain their value and do their job of price protection. Or if you want to take advantage of a possible spring price rally, you “cold scale” in call options through the winter on market dips. Remember that as a market falls, call option premiums drop in value. A farmer can scale in put options in a rising market or call options in a falling market — there’s lots of market flexibility here. A key advantage of trading options over futures is there is no February 3, 2015
business margin call risk. Some people still find it nerveracking when the futures move in the opposite direction from their market position. But for options, there is no margin call trigger. You know right up front how much exposure you have in the market, which is the cost of the premium. So staying disciplined with options in a marketing plan can be easier, depending on your personal risk tolerance.
CG: Why don’t more farmers use options more routinely? EA: I think it’s true, options sometimes get a bad rap at the coffee shop. I think a lot of people don’t really understand them, or understand how to use them. I think a lot of people who are interested in trading futures outright are attracted to the razzle-dazzle and volatility of the market. But when trading options is a risk management tool, there isn’t as much razzle-dazzle — but also not the potential for stress. And often options premiums can expire worthless. This can actually be great news, but it may not seem like it to the coffee shop. To me, when buying options, it’s an issue of quality. You can get good returns from options, but you’ve got to be prepared to spend the money to purchase quality contracts, which not everyone is willing to do. Let me give you an example. Today we were buying May canola $450 put options and we were paying about $18 a tonne for them. We could also get a May $420 canola put for $9 a tonne. Now if you get a moderate pull down in the market, those higher-quality $450 puts are going to begin paying almost immediately, because the strike price is close to the actual futures price. The $420 put premiums will increase in value, but at a much slower pace. But people really hesitate to spend that kind of money for what’s really floor price insurance. This really is something farmers should discuss with their market advisers.
new clients trying to gauge exactly this — what’s their risk tolerance. Everyone needs to decide where they fit. There are people who only want to do futures. They know margin calls are inevitable and they’re prepared for them. Others want some combination of futures and options. Still others want the simplicity and well-defined risk of straight options. Another group would be best served by using cash contracts
that mimic features of the futures market through their local elevator. Only by honestly assessing your tolerance for risk and your own personality will you know what’s right for you. If you’re new to using these tools, you have to take the time to understand them and your appetite to use them. But if you’re prepared to do that work, there are a lot of tools and an incredible amount of flexibility available to you. CG
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CG: So how should farmers decide on futures or options? EA: I always tell my clients: “It depends on how well you sleep at night.” It’s all about their risk tolerance. If their trading account can keep them awake at night, I don’t think futures are for them. One of the things I’m sure you’ve heard me say is that we spend a lot of time with February 3, 2015
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country-guide.ca 11
business
Land grabbers Are non-farmers snapping up too much Canadian farmland? Nobody knows, especially in Ottawa gain this winter, ownership of farmland is a heated topic in coffee shops across rural Canada. Rumours abound. Sometimes, it’s foreign buyers who are said to be gobbling up huge chunks of prime farmland, paying prices that Canadian farmers can’t afford. Other times, it’s pension funds or rich non-farm investors. Whoever tells the stories, the non-farm buyers seem to be everywhere. And in most accounts, they’re definitely the bad guys. But is third-party ownership of farmland actually as big a problem as the coffee shop talk paints it? The answer is maybe yes. Or maybe no. We just don’t know, which may in itself be a real problem. Two big challenges get in our way right away. First, regulation of land ownership falls under provincial regulation, and it varies across Canada. That means non-farmer ownership could well be an issue in some provinces and not in others. In November 2013, Garth Anderson, a partner in the Calgary office of the international law firm Blake, Cassels & Graydon LLP, put together the onepage overview below, comparing provincial regulation of farmland ownership across Canada. It reveals a wide range, from the hands-off policies of Ontario, Nova Scotia, and New Brunswick to the extremely restrictive laws of Prince Edward Island.
By Gerald Pilger
Even in the Prairie provinces, where farmland ownership is relatively restricted, there are exemptions which ease some of those restrictions. For example, Saskatchewan considers a person to be a resident for the purpose of owning land if they reside in Canada at least 183 days a year. Saskatchewan also provides an exemption for non-Canadian residents if they intend to move to the province and actually farm, and next door in Alberta, there are exemptions too if the sale “will be of economic benefit to the province of Alberta.” Alberta legislation also allows foreigners to lease farmland for up to 20 years, and even where residency is required, purchasers need only provide a statutory declaration of their residency in order to purchase farmland.
How much Canadian farmland is foreign owned? A second problem is that no one is actively tracking foreign ownership of farmland in Canada. While land title offices in all provinces record ownership information on all land transactions, they do not track citizenship or residency. To come up with an accurate assessment of who owns land would require the individual examination of every land title. Continued on page 14
Comparison of Provincial Farm Land Ownership Legislation Alberta
Saskatchewan
Manitoba
Nova Scotia
New Brunswick
Newfoundland & Labrador
PEI
Agricultural Land Protection Act
None
None
None
PEI Lands Protection Act
Ontario
Quebec
Foreign Ownership Saskatchewan Farm Security Act Manitoba Farm of Land Regulations Lands Ownership Act
None
British Columbia Legislation Governing Farm Land Ownership
The Land Act
Regulating Authority
None
Farm Ownership of Land Administration
Farm Land Security Board
Farm Lands Ownership Board
None
Quebec Agricultural Land Protection Commission
None
None
None
Island Regulatory and Appeals Commission
Restrictions on Provincial Residents
None
None
None
None
None
None
None
None
None
Maximum of 1,000 acres
Restrictions on Canadian Residents
None
None
None
None
None
Maximum of 10 acres
None
None
None
Maximum of 5 acres
None
Maximum of 10 acres
None
None
None
Maximum of 5 acres
Restrictions on nonCanadian Residents
Maximum of 2 Maximum assessed value for Maximum of 40 acres Only Canadian citizens can purchase crown land parcels of land not municipal taxation unless application for a exceeding a total of purposes of $15,000 (excluding disposition was allowed 20 acres, subject assessment for buildings) before May 1, 1970 to exemptions
Restrictions on Provincial Corporations
None
None
None
None
None
None
None
None
None
Maximum of 5 acres
Restrictions on Canadian Corporations
None
None
None
None
None
Maximum of 10 acres
None
None
None
Maximum of 5 acres
Restrictions on foreign Corporations
None
None
Maximum of 10 acres
None
None
None
Maximum of 5 acres
Restrictions based on
Citizenship
N/A
Residency
N/A
N/A
N/A
Residency
12 country-guide.ca
Maximum of 10 acres unless Maximum of 40 Maximum of 2 parcels of land not a “Canadian Owned Entity” or acres, unless all exceeding a total of an “agricultural corporation” of the shares are 20 acres, subject (engaged in farming). Also, 320 owned legally and beneficially by to exemptions acres for entities where majority of issued voting shares are held Canadian citizens or be Saskatchewan residents permanent residents Residency on Citizenship
Residency or Citizenship
Residency or Citizenship
February 3, 2015
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business Continued from page 12 However, because of the importance of knowing who owns farmland, a few researchers are attempting to do this examination to get an estimate of ownership. At the University of Guelph, ag economist Alfons Weersink has co-authored the study “An Empirical Examination of Landowner Characteristics, Social Capital, and Farmland Rental Rates in Southern Ontario.” The authors surveyed 240 farmers in southern Ontario in 2010 to determine the impact of land ownership on rental rates. They found in 2010, 65 per cent of Ontario farmland was owned by the actual farmer. Of the rented land, roughly 70 per cent was owned by retired farmers, widowers, families living on the land, or by active farmers who were renting some of their land to another farmer. However, almost one-quarter of the rental land was owned by investors (16 per cent) and investment companies (eight per cent). The researchers also found three per cent of the owners of rental land were foreigners living outside Canada. Weersink wasn’t aware of other economists working on foreign ownership when he did that research. “Ownership of farmland is very difficult to track,” he points out. Overall, however, his thinking is that “foreign ownership is perceived to be a bigger problem than it is.” More recently André Magnan at the University of Regina, collaborated with other researchers to study the issue. (Editors Note: The study by Magnam in collaboration with Annette Desmarais, University of
What it all means for farmland prices Manitoba, and Darrin Qualman and Nettie Wiebe from the University of Saskatchewan is titled “Land grabbing and land concentration: Mapping changing patterns of farmland ownership in three rural municipalities in Saskatchewan, Canada” and is in press for the January 2015 issue of Canadian Food Studies, canadianfoodstudies.uwaterloo.ca/index.php/cfs.) This study attempts to track the changing pattern of farmland ownership and the impact such changes have on agriculture and rural communities, although the researchers faced the same obstacle, Magnan says. “We found no agency keeps track of this in Canada. We are the first to analyze investor ownership.” The study provides a detailed breakdown of the ownership of farmland in three rural municipalities in Saskatchewan where initial research had identified there was significant change occurring in ownership patterns. In those three RMs, they found nonfarming investors or funds now own between 7.8 per cent and 13.1 per cent of the land. Magnan’s group also noted the consolidation of land ownership by big producers. In one municipality, just four farm operations made up of a mix of actual farmers and investors now own 28 per cent of the farmland. The study also found the pace of outside ownership of land is speeding up. Most of the change in ownership patterns in Saskatchewan has happened in the past 10 years, occurring after land ownership laws in the province were relaxed. Increasing farm size by big producers has accelerated over the past seven or eight years, Magnan
An area the size of France In November 2013, Country Guide first told readers about www.landmatrix.org, a crowd-sourcing website that tracks transnational purchases of farmland in low- and middle-income countries. One year ago this website, tracked by the author, had information on 851 international land deals covering some 75 million acres. As of December 21, 2014, it is now tracking 1,029 concluded land deals with another 195 intended deals. If all of these intended deals are completed, the amount of land owned by foreign investors, funds, and foreign governments being tracked by this website will have nearly doubled in one year to 137.6 million acres. Not included on this site is the intention of the Democratic Republic of Congo to lease up to 640,000 square kilometres (247,000 square miles) of cultivatable farmland to private investors in the hopes the investors will modernize farming practices in Congo as well as build needed infrastructure. This offer was first reported in the Wall Street Journal on October 28, 2014, and was described as leasing an area of land larger than France. WSJ also reported a South African Company has already leased and will plant corn on 24,710 acres by the end of January 2015.
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University of Victoria graduate student Peter Bell is studying the impact of foreign ownership on the competitiveness and sovereignty of Canadian farming. In a 2012 paper, he argues that the 2011 price of farmland was 73 per cent lower in Saskatchewan than it would have been if foreigners had been able to purchase Saskatchewan farmland. While the average price of land in 2011 in Saskatchewan was $584 per acre, he calculated the additional competition from more buyers would have pushed that average to $1,015 per acre. Bell wonders if this underpricing of Saskatchewan land due to ownership laws was a contributing factor to the growth of farmland investment funds. Higher land prices are a doubleedged sword. While higher prices are a benefit to farmers seeking to exit the industry, it also makes it more difficult for young people to begin farming.
adds: “Ownership patterns are changing quickly and on a fairly large scale.” This study raises a number of questions which Magnan says requires further study. He believes we need to determine the potential impacts of ownership pattern change both on family farms and on rural communities. Study is needed on the social, economic, environmental, and sustainability impact of investor ownership too, Magnan says, and he adds that we need to know how this will have an impact on the entry of young people into agriculture.
Are lenders enablers of investor ownership? Many farmers are also critical of agricultural lending policies which they feel readily lend money to private investment funds, enabling investors to leverage invested funds into even larger land purchases. Interestingly, Corinna Mitchell-Beaudin, executive vice-president and chief risk officer with Farm Credit Canada, says FCC stopped loaning money to large investors and pension funds a couple of years ago. “We no longer lend to large funds which intend to purchase farmland for the purpose of renting it out,” says Mitchell-Beaudin. “FCC decided in today’s vibrant ag economy, there was no longer a need for FCC support of large investor funds.” CG February 3, 2015
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A M E - ma n a g eme n t
Would your farm business benefit from an advisory board? By Terry Betker, P.Ag., CAC and Larry Martin, Ph.D number of farm businesses have already appointed or are considering either a board of directors or an advisory board to help them define and execute on their strategy. In this article, several considerations in developing an advisory board are addressed. How does it differ from a board of directors? Why have one? How do I get the most out of an advisory board?
Advisory board versus board of directors Advisory boards differ from governance boards in two ways. First, advisers have no fiduciary responsibility: they are advisers to the farm manager and aren’t responsible for the financial health of the business. Second, they also have no legal liability. Control of the business and its liability is retained by the farm owner(s). Many farm business owners wish to retain control and not share it with others. An advisory board provides outside input without loss of control.
Why have an advisory board? At the most general level, an advisory board offers an owner/manager the opportunity to pick the brains of smart people who have expertise and experience that can help grow the business. Therefore, an advisory board can perform whatever strategic purpose the manager needs. Some advisory boards provide continuing advice to the owner/ manager. Some are used as a sounding board to discuss new ideas and issues. Some are used to develop all or specific aspects of strategy, to assess performance and/or to provide advice on how to improve it. Others are formed for specific purposes: One advisory board was used to help the owner develop a succession plan and then was disbanded.
Forming an advisory board for maximum benefit Several points are key to consider in forming an advisory board: • Be clear about your objectives. Make them specific both for yourself and for your advisers. What do you expect from them, and what should they expect from you? • Choose your advisers based on your objectives. Make sure you have people with the expertise you need for the expected outcome. • If you consider your lawyer and/or your accountant, put them there in a different professional 16 country-guide.ca
capacity than their normal relationship. Why would you pay for the same advice twice? Can they add something in addition to their normal input? • Keep your number of advisers small and their terms flexible in case your needs change. You may need different capabilities as your business changes over time. • Think seriously about compensation. Some professionals may be willing to “give back to the community.” Others may take the attitude that if you want them to help you make money, then it should be worth something to you. If they make or save you a lot of money, why wouldn’t you be willing to pay them? • Make sure you are ready for a board presence in your business. Have a strategic business plan in place (or be prepared to have the board assist in its development). Be committed to listening to thirdparty input and advice. Busy and talented people are not particularly interested in attending meetings, giving advice and seeing nothing done with it. • On the other hand, minimize the number of “pals” who think like you. You don’t gain much from “yes people.” • Consider having an adviser or two whose expertise is not agriculture. Set lofty expectations in terms of the individuals you will approach.
Operating an advisory board As with any organization, effective meetings enhance organizational effectiveness. • With modern technology, time and money can be saved and a wider array of potential advisers can be recruited by using programs such as GoToMeeting. • However, especially when members don’t know each other, the first meetings should likely be faceto-face to help build working relationships. • Meeting frequency depends on your objectives. Often it is good to start quarterly, then adjust to what fits. • Meetings should be held without constant interruptions for management to attend to day-to-day matters. This is where you work “on” the business, not “in” it. • Meetings should be chaired, agendas with decision items and background material should be sent ahead, minutes taken and actions from recommendations reported to the members. CG Terry Betker is president and CEO of Backswath Management Inc., located in Winnipeg, Man. He teaches in the management programs of Agri-food Management Excellence. Larry Martin is co-owner and lead instructor in AME’s management training courses. february 3, 2015
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leadership
Are you a good leader? By Maggie Van Camp, CG Associate Editor uick, name five strengths that farmers need in order to get their day’s work done. It’s simple, right? You need technological, financial, production, and mechanical skills, and of course, we should never forget hands-on experience. Now, just as fast, list five leadership skills that farmers need for success into the future… Not so easy, is it? “Leadership is about change,” says Bob Milligan, professor emeritus of applied economics and management at Cornell University. “And about continually improving.” Milligan is currently based out of Minnesota as a human resources consultant for large farms, and although there are many ways to be a great leader, he has noticed successful farm leaders all have the ability to embrace change and to lead their businesses through turbulence. Ironically, one of the big changes in today’s agriculture is that farmers are getting past the misconception that leadership skills are something that you’re either born with or you’re not. Over the years, Rob Black from the Advanced Agricultural Leadership Program based in Guelph, Ont. has taught leadership skills to hundreds of farmers. He says the interest in leadership, board and organization development by individuals and organizations is on the rise, and that farmers apply and learn leadership skills by sitting on boards and volunteer groups. “Some organizations now have board and individual or personal leadership development as a budget line item, and others have leadership programming for their board members and delegates to participate in,” Black says. With help from Milligan and Black, Country Guide developed five questions to test yourself. Have you got what it takes to lead your farm business? Or, perhaps even more important, can you identify the leadership skills that you should be prioritizing for improvement?
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Like never before, your farm needs new leadership for a new business environment. Are you getting the job done? Rate yourself on these five key leadership traits 1. Do you understand the difference between leadership and management? Understanding leadership versus management, and knowing when to use each is something every farm leader should know. But many don’t, says Black. Instead of only managing the work, the leader of a farm business must also develop and implement vision, culture and strategies for their farm. There’s no doubt this is different than it used to be, says Milligan, who captures it with a quotable quote: “The progression from worker to manager to leader is the new challenge for farms today.” Even though leadership may not take the majority of a farm CEO’s time, it’s at least got to be a priority for that person. The leader must get out of bed in the morning thinking about the future of the business, not which field to plant or what cows to cull, says Milligan. That can happen after coffee. Once a clear vision is shared that lays out why and how the farm is going to reach a key goal, then everyone can succeed at their own role on the farm. This means that at least one owner must have the future of the farm business as their top priority, with the job of setting goals and making opportunities happen. It also means that this individual must be mentally ready for the unexpected. Identifying this leader (or leadership team) is imperative, says Milligan. Not everybody is happy thinking at this level, since it doesn’t generate the same immediate satisfaction as tasks, and since it also involves passing control on to others. Strategic leadership means owners and partners must know why the work they are doing is important, and they must ensure everyone on the team understands it too. They must know the direction the farm is taking to get to this vision, and how the people of the farm are going to behave to make it happen. The strategy needs to align with passion, and with operational excellence, says Milligan. “It should drive and motivate what we do every day.”
February 3, 2015
leadership
2. Do you communicate clearly, especially on difficult issues? Leaders must be able to put their vision of the future of the farm into clear, understandable words. “Thinking like a CEO means communicating to every member of the farm the vision, mission, and strategy, and enlisting their support in the farm’s journey,” says Milligan. Farm culture is key, and it is both underrecognized and underappreciated, says Milligan. The person acting as chief executive officer must develop and communicate the vision for how the farm will maintain or return to financial stability, and how it will succeed in future. Then CEO needs to lead the team to fulfil that vision. The leader of the farm should clearly explain their strategy to everyone — all the employees and family — so the whole team understands the goal and how they are going to get there. It’s also a prime opportunity to listen and learn about new ideas and the potential implications of applying the plan. Strong leaders understand communication must be two way, and how important it is to listen to feedback. They also know ways to get to the heart of the matter quickly, and deal with conflicts and emotionally charged situations. Leaders know their own strengths and weaknesses and how to adjust the way they communicate according to the situation.
Among other groups, AMI offers a communication skills workshop for agribusiness managers, where participants get tools for tackling challenging conversations and engaging others over the long term more effectively.
3. Do you enjoy working in a team? In the past, individual farmers made operational decisions for their sole proprietorships. The equation was simple: If you work hard, if you invest and if you are aggressive, it will lead to expansion. “Primary producers as leaders are more likely to have a work focus rather than a people focus, but both are important depending upon the situation and issue,” says Black. However, as farms become bigger and more complex, success requires more focus on team-based decision-making. Collaboration results in synergy, so one plus one becomes greater than two, says Milligan. “This is crucial to the leadership team, to all of the farm’s teams, and to the total workforce,” he says. When we think of historically strong leaders, we often picture politicians or warriors who rallied people to a better future. In small business, being a great inspirational speaker may not be as imporContinued on page 20
“ The CEO is the key leadership role in the business,” Milligan says. “Its absence has been devastating.”
February 3, 2015
country-guide.ca 19
leadership Continued from page 19 tant as understanding that people are the greatest asset of the farm. These leaders understand one of their most crucial roles is acquiring, developing and retaining a great workforce. To lead like a CEO, farmers need to establish the expected performance for all members of the team, including members of the leadership team. The group also needs to set ways of holding everyone accountable to those performance levels. “Establish the operating rules for the team and develop a culture of synergy, collaboration and excellence,” says Milligan. This ability to collaborate extends to
the larger industry, including other farmers, trusted sales people, lawyers, and accountants. Black says networking and negotiation skills can be developed to help farmers learn to collaborate.
4. Do you spend any time thinking about time efficiency on your farm? Time management skills are among the top five skills farmers need today to lead their farms successfully, says AALP’s Rob Black. Farm leaders need to continually ask themselves and their staffs how efficiency can be gained. It’s important for
the leader to understand how all the parts are interconnected on the whole farm, and to have a clear knowledge of work flow. Farm leaders develop operational plans and procedures to take the business to a higher performance and cost-control standard, says Milligan. He also says that it’s up to the CEO or farm leader to ensure performance management programs are in place and that they are being used so every employee is achieving to their potential. Leadership skills are also required for smooth, efficient succession, on the farm and in organizations. Rob Black is concerned that not enough young primary
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20 country-guide.ca
February 3, 2015
leadership producers are taking on leadership roles in organizations when the older ones step back, which is sometimes an issue in an organization or business. Says Black: “We need to continue to support our young people as they develop their skills and take on leadership roles… in numerous ways, on the farm and off so that they have the time and resources to move forward.”
5. Are you proactive? “Leaders think ahead and out of the box,” says Milligan. “They see change as opportunity.” In his experience, successful farms are led by people who are constantly looking
for opportunities, even in difficult situations. Leadership must establish a farm business culture that views change as opportunity, says Milligan. The CEO must always seek and capitalize on opportunities to enhance income or reduce risk by contracting product and inputs. To do this well, they need to understand the external environment, especially the industry and overall business environment. It’s all part of positioning the farm to withstand or even flourish during transition or the inevitable ups and downs of the market. The consistently successful farmers are on top of two key parts of their farms, ensuring that world-class
production and marketing procedures are in place. They also establish that strong recruitment and selection procedures are in place and that they are used to attract the best possible candidates to open positions, says Milligan. Being proactive, setting up processes for communicating, and building a team reduces risk and sets up the farm for success. Without someone putting time into this part of the business, it’s difficult to survive through turbulence, says Milligan. “The CEO is the key leadership role of the business, and its absence has been devastating to many dairies, agribusinesses and other small businesses.” CG
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leadership
Focus on where you can lead n 1995 James Reesor and a business partner bought a 300-sow farrowing herd. Today, two decades later, RFW Farms is a 4,000-sow farrow-to-finish multi-site operation, producing about 2,000 hogs a week. By all measures, those 20 years have been challenging times in the hog business, yet this company has emerged as one of the largest hog operations in Ontario. How did they do it? Reesor has created a core culture of quiet resolve, respect and attention to detail. Opportunities presented themselves, and the leadership was prepared. Without a lot of fanfare, a unique business structure evolved, one based on a foundation of mutual respect between farming families, backed up by practical intelligence and unwavering leadership.
At RFW, an obsession with barn details plus an environment of mutual co-operation drive success RFW owns the sows, nursery and finishing hogs and raises them under business agreements with over 30 farm families throughout Huron, Perth, Middlesex, Wellington, and Waterloo. RFW Farms also owns and manages two of the five sow farms supplying the system. Through regular communication with the individual farmers, RFW Farms closely manages the entire production system, including logistics, health, and marketing. It has been able to leverage scale, synergies and skills without huge overhead investments in concrete and equipment. “We treat it like a publicly traded company,” 22 country-guide.ca
says James Reesor, owner and CEO from RFW’s head office in Grimsby, Ont. This includes biannual meetings with producer-owners, and it also means annual budgets and quarterly reports. However, unlike many public companies, Reesor doesn’t publicly set growth targets. Instead he manages the farm corporation so it can grow when opportunities arise. But RFW also has its feet on the ground. As a former government extension hog specialist, Reesor saw the industry up close, and he has applied what he learned. As well, the RFW leadership team has created a culture of improvement, with Reesor, Ryan Martin as production manager, Sunnie Hu as finance manager, and veterinarian Greg Wideman. “In the ’90s when three-site pig-raising systems emerged, it was big on ideas and short on ways to manage it,” says Reesor. RFW Farms shares production, performance and costs per kg gain information with producers so they can benchmark against each other. The focus is managing production details and having respect for each other, not competition. “We don’t put a crown or goat horns on anyone,” says Reesor. Instead, they keep detailed batch records of each nursery and finishing barn group. “Performance information is shared within our system,” says Reesor. “Everyone feels the responsibility to the others in the systems because we rely on each other to improve.” The team also thinks carefully about what to measure, and what to learn from those measurements. For example, in the nursery-to-finisher barns, the key profit drivers are feed efficiency, cost of gain, average daily gain, mortality, morbidity and carcass quality. But these measures represent outcomes of other decisions. Although the corporation doesn’t have written vision and mission statements, it does have an overarching goal to maximize nursery-to-finish barn performance, and it is imperative that everyone in the system buys into this goal. February 3, 2015
Photography: DEW Imagery
By Maggie Van Camp
At RFW Farms, the goal is to inject certainty into what can seem a very uncertain business. How they do that is a story in itself
leadership
Don’t stress
Optimum performance comes from a commitment to planning, says RFW ’s James Reesor. “Identify what you want to improve.” In other words, they rely on each other, and they internalize that as an essential ingredient in all their thinking. “The goal is to have reliable, meaningful, predictable performance so you can identify what you want to improve,” says Reesor. When prices slumped and marketing was a struggle, RFW continued to focus on what it could control, i.e. production. “Managing details has to be the first responsibility,” says Reesor. Yet RFW doesn’t write standard operating procedures. Because the team is always improving, expanding and evolving, they’d be continually amending the procedures to suit their diverse group of February 3, 2015
farms. “You can be happy with results, but one should never be fully satisfied,” says Reesor. “That’s the mindset of the person we want working with us.” Yet Reesor also recognizes that as a business becomes larger, more formalized management systems are required. The group meets twice a year to exchange ideas and review recent progress. Over the years, Reesor has listened, and he has pulled together a set of principles that the group informally shares. Although the goal is profitability, these principles are about caring for the animals and for the farm families that raise them.
Reesor says farming should be busy but relaxing. This includes positive stresses. But negative stress — worrying about breakdowns, health challenges, and prices — should be minimized. “The most successful livestock and crop producers make the job appear easy, but are actually enjoying the outcomes of a great deal of planning, effort and investment,” he says. For example, receiving a high-quality feeder pig can make the responsibilities of managing the finishing barn appear easy. Although a lot of effort goes into preparing a top-quality feeder pig, most of the cost of producing a market hog is allocated to the finishing segment, especially when feed costs are higher. The finishing operator is responsible for managing all the fine-tuning aspects of this stage. Even the best-run operations have stumbled through some rough markets. “Believing in what I was doing, in the people around me and the system, kept me going even a couple of years ago when it was really stressful,” Reesor says. “That gave me the energy to carry on.” Admittedly, sometimes quitting or cutting back is the right thing to do, but Reesor says he was just too stubborn. When Quality Packers declared bankruptcy last year, it defaulted on paying several hog farm, including RFW Farms. Reesor knew prices were improving and was able to stay the course. “Sometimes you just have to take a deep breath and carry on,” Reesor says. “We could either be ground up in this stress, or choose to not let the stress become mentally debilitating,” says Reesor. “We tried to keep our minds on just managing the details.” Complaining was not a tolerated trait on the farm he grew up on, and he still doesn’t have time for it. Reesor remembers as a boy grading eggs with his dad talking about some negative news that he had read in the farm paper. His dad replied that no one was forcing them to farm. Farmers are not victims, Reesor learned at a young age, and they must take ownership of their decision to do this for a living.
Continued on page 24 country-guide.ca 23
leadership Continued from page 23
Be proactive A culture of being prepared permeates RFW Farms. Preventive maintenance is encouraged to minimize costly downtime and stress, and contract farms are encouraged to carry spare parts and to continually assess and update equipment. “The approach is, don’t let it wear out,” Reesor says. Stable health is deemed critical, including maintaining health status, feed ingredients and facilities. RFW Farms invests on vaccines and treatment up front rather than waiting to treat until there are emergency health breaks. Compared to other farms, they tend to have higher health costs per pig produced, but are among the best for low mortality and morbidity. Reesor also applies this grease-gun thinking to their overall business, including marketing, financing, and human resources. For example, a couple of years ago the company bought a group benefits program. Although it took some shopping around to find one that was affordable with decent cost coverage, Reesor says it has been well received. He understood how much this helps from his days working for industry and government. Early on Reesor decided they needed to take ownership and responsibility of the pigs from farrow right through to finish to manage risk better. He could control and plan, hold a position, and hedge feed and final marketing price. It also meant that if they did a better job at breeding and raising, they could potentially outperform their competition in the feeder barns, where a slight gain in feed efficiency could make a huge difference in profitability.
As farms grow, Reesor says, they must become more professional in business management too.
Put your brain in gear You don’t have to live in the barn, but you must be fully mentally engaged when you’re there, Reesor says. If your brain isn’t 100 per cent engaged when you are managing the barn, then you won’t see the animals’ needs or equipment problems. “Put the mental time in as well as the physical,” Reesor says. “If you’re taking animals into your care, you need to give that your full attention.” Over the last couple of decades, as farms became more mechanized and segregated, and with more diversification and off-farm jobs, this trap of being distracted can lead to problems, he believes. Even though a nursery or finishing barn is not a full-time job, you cannot let your mind be somewhere else when you do chores. “Chores are not what you do before breakfast, then get on with the day,” says Reesor. “This risks fitting the needs of caring for animals into a specific allotted time.” Reesor hasn’t noticed any difference in engagement and competency between the two sow barns he recently bought with employees and the three sow farms other families own. “There’s no particular correlation of diligence with whether they’re employees or owners,” he says. Individual pig care is critical for their sow farms. Even so, Reesor says it should not blind managers and employees to overall group care. Ventilation, temperature, water, feeder settings, equipment and building maintenance are all crucial. Their contract farmers and staff are encouraged to relentlessly identify and fix the environmental causes of any animal aggression. RFW Farms made the choice to select breeding stock from less aggressive genetics, potentially trading off some higher feed efficiency and lower average daily gain. However, these performance measures have not suffered. 24 country-guide.ca
“It is not congruent to preach animal husbandry and care while placing animals that are prone to aggression or having a barn environment that may stimulate aggressive behaviour,” says Reesor. The reality is that many animals in groups, especially pigs, establish a pecking order. They do it by physical dominance. Reesor is concerned that some of their sow barns may be forced to replace their individual stalls with group housing. “If I choose to change (to loose housing) to meet my customers’ needs that’s fine, but 95 per cent of the customers trust our system. They know it’s safe and the animals are cared for, but they’re also looking for value. We don’t want to hinder Ontario’s ability to compete in the world.” In additon, last year’s Code of Practice for the Care and Handling of Pigs (https://www.nfacc.ca/codes-of-practice/pigs) has sow management standards that Reesor believes are worded negatively and influenced by the “Right to express natural behaviour” section of the Five Freedoms of animal care, written in the 1970s. “I don’t support the sow management section of the national animal care codes,” says Reesor. His reasoning starts with actual comparisons from their own farms, where some of their sow producer barns have loose housing and others have stalls. There’s more tail biting in the loose housing, together with aggression and higher feed wastage. “Sows need to be comfortable,” he says. “Our stalls are wide enough. In stalls we can care for them better, manage them individually.” New standards must improve, not reduce the sow care environment, he believes. Sometimes, Reesor shows, leadership means standing up for what you know is the truth. That you can control. CG February 3, 2015
Canadian Forage & Grassland Association The national voice for all sectors of the forage and grassland industry The Canadian Forage & Grassland Association (CFGA) is a national, non-profit association representing Canadians who produce hay and forage products, as well as stakeholders who depend on forage and grasslands to support their industries. The livestock sector is the largest user of forages in Canada, with 80 percent of Canada’s beef herd diet and 60 percent of a dairy cow diet dependant on forages. The CFGA was formed in 2010, to provide a national voice for forages and a coordinated approach for the industry to address several market barriers on a national basis that restrict market access in a competitive way, such as transportation costs, currency rates, trade protocols, energy costs and market demands. CFGA’s main role is to uphold Canada’s robust forage industry and realize the potential of the domestic
and export forage market. This is accomplished in several ways. RESEARCH. Efforts undertaken by the association have national interest and focus on innovation, marketing and promotion. Research projects are initiated in collaboration with regional provincial councils, and its member directors. FORAGE MARKETING. Canadian forage and forage products are marketed coast to coast and internationally to support domestic and export markets. EVENTS. The CFGA Conference and Annual Meeting is held annually and includes tours and special workshops that provide exceptional learning and networking opportunities. RESOURCES. In addition to event proceedings, the CFGA website provides access to technical information, fact sheets, reports, manuals, reference materials and more.
CFGA LEADERSHIP AWARD. Presented annually, the award recognizes individuals, groups or organizations that exemplify or enhance the goals of the CFGA and whose leadership has impact of national and/or international significance. NEWSLETTER. Sent approximately three times a year, the e-Newsletter provides information on CFGA initiatives, research, events and updates on the general progress of the association. MEMBERSHIP. The CFGA has four membership categories: 1) Membership from recognized provincial forage councils or organizations AND Organizations/ Groups representing Users/Producers, 2) Overseas Exporters, 3) US Exporters, and 4) Patron Memberships
For more information on CFGA, please contact us at info.cfga@gmail.com.
The livestock sector is the largest user of forages in Canada, with 80 percent of Canada’s beef herd diet and 60 percent of a dairy cow diet dependant on forages.
CANADIAN FORAGE & GRASSLAND ASSOCIATION www.canadianfga.ca
leadership
Top board performance It’s no accident the Western Canadian Wheat Growers Association gets high marks for the quality of its board of farmer directors
illing board seats is never an easy task. Your top prospects may be reluctant to offer their time, especially if both spouses are busy raising a family in addition to their farming and off-farm careers. Others are already fully committed, or even over-committed in other off-farm roles. Yet the other harsh reality is that even with a full slate of directors, there’s no guarantee the board will be effective. Just getting enough bodies to fill the chairs isn’t enough. Relationships can sour. The board may break apart into cliques. Or your members may not bring the expertise and commitment that you need. Somehow the Western Canadian Wheat Growers Association has managed to avoid these pitfalls. They’ve stacked their board with people passionate about policy. They encourage open discussion while staying focused on their mandate. Whatever you think of their stance on policy issues, they seem to have mastered the art of organizational leadership. So what makes their board effective?
They know what they stand for Based in Winnipeg, the group’s executive director Blair Rutter says he knows where the answer starts. The Western Canadian Wheat Growers doesn’t chase the latest issue, or get sidetracked by the most recent headlines. Instead, Rutter says, the group has strong core values of open, competitive markets, and “allowing farmers the freedom to manage their business. It’s very much a free-enterprise orientation.” “And it does make for clear policy develop26 country-guide.ca
ments,” Rutter says. “You can always test any policy issue against those core principles.” For example, the Wheat Growers was one of the few farm groups calling for the federal government to lift the order-in-council on grain movement, chair Jim Wickett says. “The market was showing that it’s time,” says Wickett, who farms near Rosetown, Sask. “And we’re not ones for having government involvement. We’d like to see the government out of a lot of things.” Wickett joined after talking to Gerrid Gust, a director with the group. The Wheat Growers seemed like his kind of group, he says. “You don’t want the government in your way,” says Wickett. “All you want to do is, you want to farm and produce a good crop and be able to sell it on your terms, at your price.” Not every Prairie farmer will agree with the philosophy, but the group’s clear stance and shared values means they recruit like-minded directors, which makes for a united board of directors. Even when directors disagree, their core values are aligned. “So we may disagree on nuances of policy. And that’s fine,” says Rutter. February 3, 2015
Photography: David Stobbe
By Lisa Guenther, CG Field Editor
leadership
Chaired by farmer Jim Wickett, you don’t have to share WCWG’s politics to admire its board of directors and want to share its strategic management philosophy
The extra benefit, adds Rutter, is a lack of internal politics and strife within the Wheat Growers.
They recruit the right people
Ask Rutter what he looks for in potential directors, and a passion for farming is No. 1. Throw in a keen interest in policy, and you just might have a new Wheat Grower director. People who are passionate about farming and policy are engaged, says Rutter. “And that’s another benefit I have on my board, I have directors who are very much engaged in the issues. I share a lot of information with them and they give a lot of feedback to me.” But directors aren’t the only ones intent on reforming policy in the Wheat Growers. “I see where policy matters. It can have a tremendous bearing on farm profitability,” says Rutter. February 3, 2015
Rutter joined the Wheat Growers because he wanted to improve agriculture for farmers, he says. He grew up on a farm himself and worked in banking before going back to school to earn a graduate degree in agricultural economics. The presidents that Rutter has worked with have skills he doesn’t, such as being persuasive in a crowd of farmers, he says. Rutter tends to be quite technical and analytical, he explains. “I provide them the information that allows them to be effective leaders.” Wickett also embodies many of the traits the Wheat Growers look for when recruiting directors. “I treat (farming) like it’s my profession. And I like the fact that literally no two days are the same,” says Wickett. He adds he farms 24/7. “I do enjoy other things, too. But it’s just this is what I do.” Wickett has been farming since 1984 on what is now a fourth-generation farm. He started out farming with his
dad, and now farms with his wife and two young daughters. These days, along with chairing the Wheat Growers, Wickett sits on the Western Standards Committee. The committee reviews grading issues and makes recommendations. He says he’s constantly learning through his policy work, and that work often clears up his own misperceptions. Yet the other distinguishing trait of the Wheat Growers board, aside from its unity, is its youth. Again, Rutter and Wickett make it clear that this didn’t just happen. It’s a strategic choice. Directors range in age from mid20s to mid-40s, with Rutter putting the average age between 30 and 35 years. Rutter says that although the Wheat Growers includes members of all ages, when it comes to the directors, they “seek out young farmers who have a passion for this business and a passion for policy. And that’s deliberate.” The thinking is that the younger set is the future of agriculture, Rutter explains. Recruiting people who are young and passionate makes for forward-thinking policy. Continued on page 28 country-guide.ca 27
leadership Continued from page 27
They foster a “culture of dissent”
They know how to appeal to young farmers
Every board needs to develop a culture of dissent, Rutter says. Welcoming disagreement around the boardroom table is “vital because you always come up with a stronger position (and) you’re not overlooking something.” Despite the directors’ philosophical unity, Rutter says they have strong discussions on issues, most recently the order-in-council on grain transportation. “The one thing I do like about our group is that no one seems to put their fist down and say this is the way we need to do it. This is how I want it done. Everything’s done kind of by consensus,” says Wickett. He adds there might be certain issues he doesn’t agree with everyone on, but he can live with it. As chair, part of Wickett’s job is to facilitate discussion. Wickett says the chair needs to let the discussion take place, while “steering it a little bit if you have to, or keep it corralled back to the topic at hand.” Wickett says he’s seen other boards where the chair already has his mind made up. “And there’s no changing it. And you kind of wonder why you had the meeting.”
Recruiting young farmers is a challenge, because they’re often busy with their families and farms, says Rutter. They tend to focus on agronomics and grain marketing, and rightly so. So the first step is to get young farmers at Wheat Grower conventions where they can see the value of the networking, says Rutter. They’ve also hired a summer student to focus on recruiting young farmers as members. The goal is to position themselves as the go-to organization for young farmers with a positive attitude about the business, Rutter says. “I’m the old man in the whole group,” Wickett says, chuckling. He says having a young board is “awesome,” especially as the chair. “You sit back and kind of let these guys go. And so I guess, at times I’m the guy going, ‘Hey, wait a minute, I remember the ’80s.’ And they’re looking at me like, ‘I wasn’t born then.’” Wickett says the board is lively and engaged. He adds there are some analytical minds in the group who can “get down to the nuts and bolts” of federal programs such as Agri-Stability. Others are strong in crop insurance and marketing. As for his part, Wickett brings leadership experience to the group. He served 13 years on municipal council, coached high school football for 17 years, and was president of the local Kinsmen club and senior hockey club. Those years of experience have taught Wickett a thing or two about leadership. During his time on municipal council, Wickett worked with a reeve who had “a real gentle, calming influence. And he would let the discussion go… He’d have his say, but he’d let everyone else have their say first.”
Policy pet peeves Grain movement tops both Blair Rutter and Jim Wickett’s lists of policy pet peeves. Wickett says the transportation file raises his ire, not only with crops, but everything that’s moved by rail in Western Canada. “I just find the two national railways almost very complacent. Very much a duopoly,” Wickett says. Wickett adds that, in his opinion, Western Canada’s economic development has been held back by Canadian National and Canadian Pacific. “Look at the trucking business. That is an open and competitive market,” says Rutter, adding he doesn’t spend any time on trucking business regulation. “If you get competition in any sector, then farmers will be well served.” New trade deals giving Canada access to overseas meat markets should mean more opportunity for Canadian farmers, Rutter and Wickett say. Rutter says growth in the livestock industry would mean less grain moving by rail. That drives the Western Canadian Wheat Growers’ support of open and free trade, Rutter says. “We want to get to that world where CP and CN are coming to us, saying, ‘We want to haul more grain.’ Or grain companies are trying to bid for our grain because too much of it is going elsewhere,” says Rutter.
28 country-guide.ca
They keep everyone in the loop The board communicates within their shop a lot, says Rutter, which means everyone is singing from the same song sheet on policy issues. For example, Rutter will draft a press release on an issue. He’ll then send it to all the directors for input. Then three directors have to sign off — the president, the chair, and the chair of the committee the press release relates to. “And so in the end, you have a final product, a press release, that everyone has seen. You know your position. And they buy into it,” Rutter says. The board meets three times each year face-toface, and has about three board conference calls. And they email daily. Rutter says that process works for the Wheat Growers because they’re busy, and can’t have many face-to-face meetings. The Wheat Growers are also clear about who is serving what role. As the president, Levi Wood is the chief spokesperson on policy, Rutter says. Wickett, as the chair, handles the administration side of the Wheat Growers, and works directly with Rutter. Wickett describes Rutter as the point man, especially when directors are busy in the spring and fall, and only have time for phone calls or email. This system frees the president to handle media calls and stay on top of policy issues. “To us, separating those functions is good because it’s making sure not all that burden is placed on one individual,” says Rutter. Ultimately, Rutter says it’s hard to put a finger on what makes an effective leader. But along with passion, communication is important, he says. Good leaders are authentic and believe in what they’re saying, he adds. “They inspire.” CG February 3, 2015
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leadership
The first egg From across Canada, egg producers are setting goals for African assistance.
Farmers’ leadership skills are making a humanitarian difference, like Project Canaan in tiny Swaziland By Helen Lammers-Helps oger Pelissero gets choked up when he talks about his time in Swaziland as part of a humanitarian effort called Project Canaan. The words that come to him are the only ones he can think to say. “We take so much for granted,” he says. Pelissero sees eggs every day as an egg farmer from the Niagara Peninsula in Ontario, but even so he had never really felt what an egg can mean in quite the same way as the day he watched young children at the Swazi orphanage eat hard-boiled eggs for the first time. Pelissero is part of a team from the Egg Farmers of Canada that’s working with Heart for Africa, a nongovernmental organization that has set up an orphanage and a 2,500-acre farm called Project Canaan in Swaziland, one of Africa’s smallest countries. Located adjacent to South Africa, Swaziland has been devastated by the HIV/AIDS pandemic. It has the highest prevalence of HIV infection in the world, with 43 per cent of adults affected. With their parents dead, dying or incapacitated, more than 200,000 children are orphaned, says Tim Lambert, CEO, Egg Farmers of Canada. Now, Egg Farmers of Canada plans to build a barn for egg layers at their Project Canaan farm. Through an established network of 27 churches, eggs from the farm will not only feed the children living on site in the orphanage, but will also supply valuable protein and nutrients to about 200 farm workers, as well as to thousands of others in need in nearby settlements. 30 country-guide.ca
Eggs are among the most accessible forms of protein. “They are the perfect product to feed a hungry world,” Lambert says. Hens have many advantages over other livestock, he explains. They are small, easy to handle, efficient and productive. They can be farmed on a small or large scale, and at the end of their life cycle, they can be used for meat. Founded by Canadians Janine and Ian Maxwell, the farm is already producing fruits, vegetables, coffee and a small herd of goats. Milk is pasteurized on site before it is distributed. Coffee and vegetables are sold and the profits are used to help sustain the farm. “The egg farm will be the crown jewel of the project,” says Lambert. Manitoba egg producer Kurt Siemens visited Project Canaan in June 2014. “We had to see if it made sense to go ahead with the barn,” he says. They did a preliminary feasibility study to answer basic questions like: Is there access to water and feed? Is there a good site for the barn? The farmers were impressed with what they saw at Project Canaan and with how much the Maxwells had accomplished in just a few short years. Since moving there with their children in 2012, the Maxwells have installed three dams and a water filtration system as well as drip irrigation to grow vegetables, says Lambert. In October, another group from Egg Farmers of Canada including Pelissero visited Swaziland to meet with potential suppliers. Eagle’s Nest, a local February 3, 2015
business
In a land with 200,000 orphans, these children had never eaten eggs before Project Canaan.
farm owned by a father-son team, is willing to supply ready-to-lay pullets, plus feed and veterinary services and they are also signing up to buy any excess eggs. On that trip, the Canadian egg farmers were also able to source construction materials and equipment and get prices for everything so they could establish a budget. The plan is to have 5,000 laying hens in cages and another 1,500 free-range hens. (There is demand for free-range eggs by the ex-pats living in Swaziland. The revenue from the sale of eggs will help with the financial sustainability of the farm.) An egg cooker will be used to hard boil the eggs so they can be vacuum packed for easier distribution, says Lambert.
Pelissero, Siemens and the other farmers involved donated their time to develop the plan. A life-long supporter of charities, Siemens says it was great to be able to contribute his expertise in construction and chicken farming directly to the project. “It’s something I have first-hand knowledge in.” So far, there are 81 children living in the orphanage at Project Canaan, all under the age of four. The children arrive as infants, usually malnourished and sick. There are many social problems in this tiny impoverished kingdom the size of the state of New Jersey. Rape is common and young girls are forced into prostitution to feed their younger siblings. Mothers are
At work, egg producers Tim Lambert (l), and Kurt Siemens (r), with Ian Maxwell of Heart for Africa.
February 3, 2015
forced to abandon their children because they cannot care for them. At the Project Canaan orphanage, the children are loved, fed and educated, says Lambert. So far the Maxwells have built a baby house and a toddler house. Additional housing will be built for children left destitute by the AIDs crisis. Part of Project Canaan’s goal is to educate the children and teach them vocational skills so they can one day break the cycle of poverty and ignorance. “The children will not be adopted out. Instead they will be taught skills and hopefully they can rebuild society when they grow up,” says Lambert. A medical clinic at the farm serves not only the orphans and farm workers but also the outlying communities. Project Canaan is also having an impact back here in Canada. Pelissero says visiting Project Canaan was a humbling experience. “Words cannot describe the impact the trip had on me.” Siemens agrees. “It’s hard to explain unless you’ve been there.” Both men recommend this type of experience to others. Lambert says that for years the Egg Farmers of Canada has shown social responsibility through its support for food banks and school nutrition programs at home in Canada. It was through their membership in the International Egg Commission, however, that board members began to see opportunities for the egg to play a more significant role on an international scale. In addition to Project Canaan, the Egg Farmers of Canada is involved in a capacity building project in Africa that would help small-scale farmers improve their production practices though education. The next phase at Project Canaan is to raise the necessary funds, says Lambert. They are hoping to raise $1 million to make it viable for the next seven years. After that they hope the egg-laying operation will be self-sustaining. If the fundraising effort is successful, construction can begin in spring 2015 with production starting in the fall. The Egg Farmers of Canada is encouraging their partners and organizations with an interest in agriculture development to support the project. Donations can be made online at www.heartforafrica.org. CG country-guide.ca 31
HR
Happiness is good for your business By Pierrette Desrosiers f you are thinking, “Happiness and business — that sounds crazy,” you should read this article. Decades ago, happiness seemed quite irrelevant for leaders, entrepreneurs and CEOs. However, in the last 10 years, researchers in positive psychology have determined why industry should care. Happiness leads to success in nearly every life domain, including work performance, health, longevity, relationships, sociability, creativity and energy. Happiness also leads to low staff turnover and low absenteeism. But how about numbers? According to Shawn Anchor, author of T he H appiness Advantage, research over the past decade proves that happiness raises nearly every business and educational outcome: increasing sales by 37 per cent, productivity by 31 per cent, and accuracy on tasks by 19 per cent. Now we’re talking. But what are the factors that contribute to happiness? How can you increase workplace happiness? Here are the five main factors that influence happiness at work. 1. Meaning. Does your work have purpose? Does it align with your values? Does your enterprise lead to benefits for others? You wouldn’t think we would need to talk about this on the farm. You feed the world. But sometimes as an industry, we forget it. Your employees need to relate their jobs to the enterprise’s mission. Help them to make the link between their everyday tasks and the mission and values of your operation, i.e. environmental sustainability, quality products, and good service. That will help them find meaning in their work. 2. Engagement and “flow.” Have you ever been so immersed in your work that you lose track of time? Have you ever felt that time was irrelevant and the work seemed natural? If so, you were probably in the “flow.” When you’re in a state of flow, you: • are completely focused on the task at hand; • f orget about yourself, others, and the world around you; • lose track of time; • feel happy and in control; and • become creative and productive. When you love what you do, you feel you can meet challenges, and you are at your best. As a leader, try more often to do what you love, what challenges you, and what you are best at. And what about your employees? You should provide a similar space for them, but how? Engage32 country-guide.ca
ment is easier to achieve if you use the best of employees’ talents and skills — put the right person in the right place. The more often we are in the flow, the more creative, productive and energetic we are. 3. Accomplishment. Do you feel that you achieve goals in your enterprise or industry? Do you feel that you do something valuable? Do you do it for more than just the money? Be sure to set realistic, achievable goals for your employees. Recognize them for their contributions. Be sure that they feel they are making progress, and that they are proud of and happy about their achievements. 4. Relationships. Do you have high-quality relationships in your work environment (employees, associates, suppliers)? Do you have a radar for the climate of your business? Do you know if each employee works well with their co-workers and supervisor? Many studies demonstrate that dissatisfaction and stress are linked to the poor quality of our relationships at work, especially with our supervisors. Don’t let conflict erode the climate. Having good relationships is critical. You can love your job, but if the relationships are bad, you lose the advantage. 5. Positive emotions. Are you optimistic at work? How do you influence others? As a leader, you can have a huge impact on positive emotions by sharing your optimism about the future, especially in periods marked by uncertainty and challenges. Be careful of what you say and how you say it. Employees’ brains are wired to look for uncertainty, fears and discouragement from their boss. So, every morning before your first contact with someone at work, ask yourself: “What impact do I want to have on my team?” Smile and be the one who shows the way. Now the link seems clear. Happiness often precedes measures of success. Moreover, happy people earn more money and demonstrate higher long-term performance. Positivity leads to improved workplace outcomes by motivating the investment of time and effort to overcome everyday obstacles. So, learn to view all of your decisions through the lens of happiness, and your changed actions should impact your business in a positive way. CG Pierrette Desrosiers, MPS, CRHA is a work psychologist, professional speaker, coach and author who specializes in the agricultural industry. She comes from a family of farmers and she and her husband have farmed for more than 25 years (www.pierrettedesrosiers.com). Contact her at pierrette@pierrettedesrosiers.com. February 3, 2015
business
‘My’ farmers dee Hobsbawn-Smith is winning international literary awards for her portrayal of Alberta farmers By Steven Biggs, CG Contributing Editor friend flipped me an email about a reading in Toronto by Prairie writer dee Hobsbawn-Smith from her book, Foodshed. Her book is about Alberta food and farmers, making this an unusual event in urban Ontario. It turns out, this isn’t the only way that it’s unusual. The event is described as an informal potluck at somebody’s home, with discussion of local food systems and food politics. This sure doesn’t sound like the high-status gastro-porn that surrounds so many food-related events in the city. Later, I manage to get hold of Hobsbawn-Smith at her Saskatchewan home after she finishes the 10-day reading tour in the East. Writing the 2012 book gave Hobsbawn-Smith the opportunity to talk about farming and food with a lot of people. She drove 5,000 km through Alberta, from the south up to Beaverlodge in Peace Country. “My farmers hosted me in greenhouses and in orchards and in tomato fields and in asparagus fields and had house readings for me and invited their families and friends,” she exclaims. “It was the most amazing road trip and book tour.” By “my” farmers, she is referring to the farmers she writes about in her book. “It’s been really warmly received, and I count all of those people in the book as friends,” she says. She attributes the friendships to the fact that her book is about more than food, saying, “Food has a way of infiltrating everything, so I heard about their personal lives as well as their professional lives.” In the book, Hobsbawn-Smith talks about what she calls the great food divide: to buy on price or to buy on story; to shop for a commodity or to shop for dinner. By putting a human face — the human story of “her” farmers — alongside the farms and food in her book, she narrows that divide. “Just about everyone who reads it comes away with a sense of the scope of the politics that underlie the food-growing world,” she says.
February 3, 2015
Rooted in food and farming Her own story is deeply entwined with food and farming. “I grew up drinking raw milk,” says Hobsbawn-Smith as she talks about being a farmer’s daughter, granddaughter, and great-granddaughter. Raised in Saskatchewan, she moved to Calgary in the 1980s, becoming a cook, caterer, restaurateur, and classically trained chef. In 1992 she opened a restaurant called Foodsmith. With an interest in locally produced food, she focused on Canadiana cuisine. “I bought from and champiContinued on page 34
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business Continued from page 33
In 1998, she started giving “Foodie Tootle” tours to city folks, taking them by bus to farms and ranches, ending the tours with on-farm dinners. Over the 12 years she did the tours, she took more than 600 people to over 50 farms and ranches.
oned what few local growers existed in Alberta at the time, and who were willing to do business with such a small bistro,” she says. Some become lifelong friends. The restaurant even showcased her own personal farm connection: Her grandfather’s old dairy shipper’s milk can with the restaurant logo. She kept the restaurant less than two years, finding it difficult to balance with two young children. But she stayed in the realm of food, running a small catering company, teaching cooking classes, and raising her children. In 1997, her first book, a cookbook called S kinny F easts , was published. She began writing for the Calgary food magazine City Palate, and writing the “Curious Cook” column in the C al gary H erald , which ran from 2001 until 2008. Her columns, she says, were about more than chefs, recipes, ingredients, and kitchen know-how: They also covered topics such as growers and rural land use.
Volume 40, Number 15 | SEPTEMBER 30, 2014
Foodshed “An Edible Alberta Alphabet” is the subtitle of Foodshed. “It’s the most political and serious book I’ve ever written, but I wanted it to have a layout that was really user friendly and visual too,” she explains as we discuss the A-Z alphabetical organization of farms by what they produce. (Q, by the way, is for quackers, a.k.a. ducks). While the book contains recipes (in the butter chicken recipe she advises readers not to flinch at the large amount of cream) it is far from a cookbook. “The material in it ranges from deaths caused by farm accidents to land appropriation or land annexation, and the issues of labour in a really tight market.” Along with the political and serious matter, she also paints the setting. Keith and Bev, for example, are two farmers
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SAFER GRAIN STORAGE Whether you’ve got enough storage space this year after last year’s bumper crop or you need temporary solutions, try these four tips BY ANDREA HILDERMAN
W
1. BRING IT IN DRY Grain going into storage should ideally be binned clean and dry. It’s debatable if that will be entirely possible this fall, and if not there should also be the means to either dry the grain or to aerate the bin throughout the storage period and a plan in place to monitor the grain in the bin on a regular basis. “Temperature cables are very popular and cost effective to monitor the temperature of the grain throughout the bin,” says Agnew. “The cables are put in place before the bin is filled and a reader hooked up on the outside provides a temperature profile of the grain in bin at any time.” This technology, like any other, is constantly advancing. Now there are wireless systems that will send email or text notifications when the temperature rises beyond pre-set limits. For farmers harvesting damp or wet grain, there will be added work to ensure the grain does not degrade or spoil in storage. “Ideally grain should go into storage dry,” says Agnew. “If that is not possible, natural air drying with the right capacity fans, even
under conditions of high humidity and low temperatures will draw off a lot of moisture. Any airflow through damp grain is beneficial.” Getting the grain cooled off is important to prevent any further degradation in quality. Turning grain in the fall or winter can have beneficial outcomes when it comes to mixing and cooling. Avoid turning grain in the spring when temperatures are on the rise.
0.1 cubic feet per minute (cfm) of airflow per bushel. A 5,000 bushel bin would require about 500 cfm from fans to cool the grain. Natural air drying requires at least 10 times that amount of air to dry grain in storage — one cfm per bushel of grain or 5,000 cfm for a 5,000 bushel bin. Aeration fans could never achieve those air flow rates. Moisture removal would be minimal and grain would spoil.
2. KNOW YOUR DRYING CAPABILITY
3. KNOW THE LIMITATIONS OF BAG STORAGE
“The next biggest misconception out there is the difference between aeration and natural air drying,” says Agnew. “Drying and cooling are very different and it’s critical farmers know this as there is a lot at stake if they don’t.” Aeration is cooling only and is a valuable part of grain storage management. Natural air drying, on the other hand, will actually remove moisture from the grain but requires much higher airflows than aeration fans can typically provide. High capacity fans are required to dry grain in the bin. Aeration requires about
Because of winter logistics problems and the 2013 bumper harvest, many farmers may need temporary storage for their 2014 production. “Grain storage bags are quite popular with farmers in recent years,” says Agnew. “Bags offer a convenient storage option, however, they also require diligent management to ensure the grain is maintained in good condition over the storage period.” Bags are prone to damage by wildlife so weekly monitoring is recommended
» CONTINUED ON PAGE 4
In This Issue
Publications Mail Agreement Number 40069240
Wheat & Chaff ..................
2
Features ............................
5
Crop Advisor’s Casebook
6
Columns ........................... 16 Machinery & Shop ............ 26
Protect your crop sale
NEIL BLUE PAGE 15
CALL A FARMER FIRST
Continued on page 36
$4.25
PRACTICAL PRODUCTION TIPS FOR THE PRAIRIE FARMER
e were probably all expecting a tough harvest, despite hoping for the luxury of good weather and an open fall. Rain, frost and even snow in early September likely mean there will be an even greater need to ensure grain storage management strategies are well in hand. “Just because you are done combining does not mean you are done managing the crop,” says Joy Agnew, an agricultural engineer and project manager of agricultural research services at the Prairie Agricultural Machinery Institute in Humboldt, Saskatchewan. “Grain requires regular monitoring while it is in storage to ensure it does not go out of condition — that is going to be the challenge from here on out.” Considering the value of the inputs and the hours and months of time and effort put into producing the crop, this is good advice. But surprisingly, it is advice that is often not heeded as carefully as it should be.
she visits, and she describes her visit as follows: “Inside the old house, the day unfolds like an oil painting from another era. The ranchers stand close to the wood-burning stove, capturing its heat on their weathered skin, then move to the acre-long kitchen table.”
Home ec teacher promotes local ingredients » Pg 27
Cattleman’s Corner .......... 35
John Deere’s 9R tractors get new features
FarmLife ............................ 41
SCOTT GARVEY PAGE 36
TAKING TIME FOR OTHERS
Rely on the unrivalled standability of Proven Seed
BREEDING BIG BIRDS
Busy farmers take time for CFGB growing projects » Pg 18
Just how did today’s poultry become so large? » PG 3
Learn more at provenseed.ca or ask your CPS retailer
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october 16, 2014
SerVinG manitoba FarmerS Since 1925 | Vol. 72, no. 42
Forage concerns after wet season High nitrate levels in frost-stressed crops can be fatal for cattle By Meghan Mast Co-operator staFF
C
attle farmers should test their feed this year because wet weather has compromised the nutritional value in late-seeded cereal crops, and cold weather could make them potentially dangerous, a provincial forage specialist says. “We’re quite concerned about nitrates this year after the stress that the plants have been under all summer and then with the recent frost and the crops being late,” said Pam Iwanchysko, from MAFRD, during the year’s first StockTalk webinar on September 16.
|
Poor weather impacts wild rice operations Wild rice has been harvested in northern Manitoba for thousands of years, but modern demands may outstrip supplies as the grain increases in popularity By Shannon VanRaes Co-operator staFF
C
Publication Mail Agreement 40069240
see FORAGE on page 7 »
20 OCTOBER
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Murray Ratuski of Shoal Lake Wild Rice Ltd. at the company’s processing facility in the Rural Municipality of Springfield. photo: shannon Vanraes
all it too much of a good thing. Wild rice needs plenty of water to grow, but heavy rains and high water coupled with cool temperatures has hit producers hard this season, particularly in northwestern Manitoba and northeastern Saskatchewan. “There’s this little pocket that covers the majority of Canadian production and they had a terrible year. Some of the people I was inspecting, they were going to harvest nothing,” said Stuart McMillan, an independent organic inspector. “It’s hard to imagine with an aquatic plant, but they got drowned out,” he said. “At some stages of growth it’s really sensitive to rapid fluctuations in water levels.” Ideally, wild rice needs between three and five feet of water as a growing medium. “We’ve been calling it a perfect storm,” said Tracy Wheeler-Anderson, owner of Naosap Harvest in Cranberry Portage. “It’s just been a very, very odd year. The water table was high last fall, then we had an abnormal amount of snow and then we had an abnormal amount of rain, so come spring the water levels were way higher than what they normally are.” see WILD RICE on page 6 »
VO LU M E 1 1 , N U M B E R 2 2
High costs slowing cattle herd expansion Canada’s beef cattle industry is poised for expansion, but will high capital costs cause delays?
O C T O B E R 2 7, 2 0 1 4
Big shows offer a chance to reconnect Every year, Alberta’s farm shows attract hundreds of thousands of visitors — and socializing remains the major draw
BY JENNIFER BLAIR
AF STAFF
S
trong prices are signalling that it’s time to start retaining heifers and build the herd — but rising capital costs could cause some producers to hold off. “There’s lots of opportunities, but it’s costly,” said Rick Dehod, farm financial specialist with Alberta Agriculture and Rural Development. A decade of pain and low prices means many producers have other priorities than expanding at the moment, he said. “A lot of those ladies and gentlemen for the last 13 years have kept their cost of production down, and they’ve really managed their farms well and survived,” he said. “But they’re behind on some of their working capital and some of the things that need to be done. “I’m sure they’re going to take their profit and meet some personal goals and some farm goals prior to keeping those cows back.” That’s the plan on Jake Meyer’s farm south of Lethbridge.
SEE HIGH COSTS page 7
BIG NEW MARKET FOR HORMONE-FREE CATTLE » PAGE 34
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The cattle on show are only one of the attractions at Farmfair International.
Before there were smartphones, Twitter and Facebook, farmers perfected the art of social networking the good oldfashioned way — face to face at meetings, trade shows, and conferences during the busy winter season.
PHOTO: FARMFAIR
BY JENNIFER BLAIR
AF STAFF
A
nd that’s still what keeps ’em coming back for Alberta’s two biggest farm shows. “For agricultural folk, whenever they gather, networking is a major component of what they do,” said Dave Fiddler, show manager for Farmfair International. The Edmonton event has grown from humble beginnings 41 years ago into one of Western Canada’s largest — and lon-
gest running — farm shows. With nearly 300 exhibitors and 90,000 visitors over the week-long show, Farmfair attracts farmers from across the country who come to talk shop about beef. “It’s where the beef industry comes to meet,” said Fiddler. “It’s the largest beef event in Alberta, and that is the major draw.” Over the years, Farmfair has added equine events and sales, entertainment, and competitions to appeal to a broader audience
Network
SEARCH
SEE BIG SHOWS page 6
The first closing of this offering is currently scheduled to take place on October 20, 2014. Visit us online or call us toll-free to participate.
FNA.CA/GRAIN or 1-877-362-3276
CENTURY OF SOLUTIONS
AG SCHOOL SAVOURS ITS SUCCESSES PAGE 2
Participation is limited to accredited investors or those that are otherwise exempt. You do not need to be an FNA Member to participate.
34 country-guide.ca
February 3, 2015
SOIL CONSERVATION COUNCIL OF CANADA SOIL CONSERVATION COUNCIL OF CANADA CONSEIL CANADIEN DE CONSERVATION DES SOLS
The face and voice of soil conservation in Canada
2015 – International Year of Soils
T
he United Nations (UN) General Assembly declared 2015 the International Year of The Soils on December 5, 2014 — the first-ever World Soil Day. By doing so, the UN recognizes that life on Earth is only sustainable when supported by healthy soil. Soils are the foundation of all agricultural production. “95 per cent of our food comes from our soil” — UN. The UN points out that by 2050, the amount of food producing land available per person will be one quarter of what it was in 1960. Globally, about one-third of the best soil is being lost through expanding urbanization and depleted through mismanagement including erosion, organic matter depletion, compaction, nutrient depletion, salinity and acidification. It emphasizes the importance of soil biota protection as this contributes to soil health, reliable soil productivity, support of the carbon cycle and its contribution to clean water — the lifeblood of soils. The UN points out that the restoration or rehabilitation of soil is never a viable alternative to soil protection and conservation. This ‘declaration’ brings focus to the Canadian responsibility for soil care and the need to learn from past mistakes. Around the world, history has shown that tillage-based agriculture is not sustainable. It is the primary contributor to soil erosion and the loss of soil biota, organic matter and moisture. Thoughtful and progressive land managers have learned how to sustainably care for soil without sacrificing crop yield. They have learned that soil care pays real dividends as they improve soil health through the
adoption of cover crops, extended crop rotations and practices like no-till. These practices support the development of soil aggregates that are dependent on biota, organic matter and moisture. Aggregates provide strong resistance to wind and water erosion on all landscapes and they improve water infiltration into soil. Further soil protection can be achieved by maintaining secure crop residue, by establishing windbreaks and by controlling concentrated overland water flow. As we move forward, the cause for the UN ‘soil declaration’ will be increasingly evident to Canadians. Worldwide, population growth, water limitation and soil exhaustion will bring serious pressure for food production on Canadian soil. Can high production be sustainable without a dramatic reduction in tillage and real attention to soil health? Can agriculture be sustainably intensified on our most productive land so expansion onto ecologically sensitive land is not necessary? Will politicians, policy makers and planners finally stop non-agricultural development on high quality food land? The SCCC grew from the need to address these and associated issues. The people, businesses and organizations that are members of SCCC believe that soil protection, soil health and the affected water, air, habitat and natural areas are fundamental to sustainable food production and to our existence. We welcome participation by those who share this cause. We particularly welcome the UN’s declaration of the “International Year of the Soils — 2015”. The legacy and vision continues.
www.soilcc.ca
Nominations for the Conservation Hall of Fame may be received from members in good standing until February 20, 2015. For more information contact: Sue Hubbs, 306-695-2231 or info@soilcc.ca
UN Global Soil Partnership http://www.fao.org/globalsoilpartner ship/iys-2015/en/ Dirt – The Erosion of Civilizations Dr. David R. Montgomery; University of California Press, Berkeley. Topsoil and Civilization Revised Edition Vernon Gill Carter and Tom Dale University of Oklahoma Press. Reducing Soil Loss International Innovation North America, June 2013 www.researchmedia.eu. Understanding and managing the causes of soil variability Dr. David A. Lobb, Journal of Soil and Water Conservation Nov/Dec 2011 – Vol. 66 No 6. The Thin Black Line Gil Gullickson, Successful Farming April 2014, Agriculture.com.
business
Calgary’s growing cuisine dee Hobsbawn-Smith’s 2008 book Shop talk: T he O pen -A ll -H ours I nsider ’ s G uide to F inding Great Ingredients in Calgary, the Bow Valley and B eyond , looks at finding ingredients — many of them for cuisines brought by people coming to Calgary from around the world. It describes where to find Asian, East Indian, Middle Eastern, and European ingredients in the city. “Eating in Alberta, there aren’t many boundaries as far as culture goes, anything that you eat in other parts of the world eventually shows up in Calgary,” she says. She expects that farmers will begin to grow more ingredients reflective of the cultural diversity in the city. “For instance, a wider variety of brassicas,” she says as she talks of growers she knows raising greens that 10 years ago would have been found only in “ethnic” restaurants. “The truth about Alberta is that a lot grows there,” she says. Beyond farming, she thinks there will be changes in food processing, saying, “It’s not just what’s going to be grown; part of it is going to be how food is processed.”
Continued from page 34
Illuminating faces Foodshed is as much a book about people as it is about food. Early in the book she says, “Much as the great short-story writer Raymond Carver lit up the lives of working-class Americans, my goal is to illuminate the faces and personal lives of my farmers.” The faces she illuminates experience joy, pain, success, and failure. There are a few failed marriages. The feelings she shares are about more than just farming. Readers learn how one farmer, Joe, takes pleasure in drumming, and has a second album that blends R & B with jazzy tones. Farm couple Rhonda and Brian first exchanged phone numbers at Vegreville’s annual Ukrainian Easter egg festival. As she shares the farm stories, readers also hear how some farmers have recreated their businesses so they can continue to make a living from the land. Phil, for example, was a poultry farmer who became a greenhouse grower. First, he tried wholesale, but then realized that retail works better for him. Gerwin shifted gears from hogs and cattle into ducks, as a result of the BSE crisis. The stories also share how frustrating it can be for farmers who just want to farm yet hit regulatory or bureaucratic hurdles. Andreas has had many challenges in reinventing his farm and laments that, “Banks don’t make decisions in house,” explaining that there is no room for vision or for personal story, just a computer screen with drop-down menus and boxes in which only conventional products fit. Peter talks of being laughed out of the building when he took his plan for raising bison to the bank. The stories are not all rosy. Bernie lost his brother to a traffic accident. Richard, a livestock farmer, develops thyroid cancer so must take on a young partner, Blake, and get his adult son, Ian, to return to the farm. Hobsbawn-Smith’s own narrative is woven in when she shows the picture of her friend Kathleen on a bridge, waving to her. Kathleen’s late son Nathan, who was killed in Afghanistan, was best friends with Hobsbawn-Smith’s eldest son.
Home on the farm Hobsbawn-Smith describes herself as a creator of stories, poems, essays, novels — and food. It’s an interesting combination. When I ask how food fits in with the written word, she explains that her mother comes from Hutterite background, and how, in the old world, Hutterites were artisans and craftspeople as well as farmers. As craftspeople, they made things with their hands. In her case, she writes, sews — and cooks — using her hands. What they have in common, she says, is tangible, visible results. “The act of making something beau-
36 country-guide.ca
February 3, 2015
business
“ The act of making something beautiful — even if it’s something beautiful you eat and then is gone — is an act of hope.” After “the” flood of 2011, “we live beside a lake,” she tells me, saying she’s been told it will take years for the water levels to go down. In the meantime, she enjoys watching birds. “Even my poetry has food and water running through it.” Foodshed has won international literary awards. “It’s pretty cool for a little book,” she says. She continues to write. At the moment, she is writing essays, a novel (which has farmers in it), short stories, and poetry. CG
tiful — even if it’s something beautiful you eat and then is gone — is an act of hope.” In 2010, after 27 years in Calgary, HobsbawnSmith moved back to 18 acres of the family farmstead in Saskatchewan. The old dairy shipper’s milk can came back with her from Calgary. Today, writing is her focus. She has contributed to six books, co-written two books, and written five books of her own.
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business
Farm failures Big bankruptcies make big headlines, but smaller farms are under pressure too By Lisa Guenther, CG Field Editor heir names are widely known, including Wigmore Farms, Broadacre Agriculture, Big Sky Farms, BioExx Specialty Proteins, and others. They’re among the high-profile farms and agri-businesses that have shipwrecked in recent years and applied for creditor protection. Each has a story that’s unique, but their stories seem to share a lot of similarities too. The explanations can be very technical as well. Andrew Marshall, chief financial officer of Broadacre Agriculture, stated in an affidavit that the company’s growth and profitability “has been severely constrained due to the lack of sufficient capital which has, in turn, limited the ability to hedge properly and slowed expansion opportunities.” But, ultimately, when it comes to the iceberg, the ship’s size doesn’t matter. It’s more about the navigation.
“ The No. 1 factor is management,” says BMO’s Glen Snyder. “It doesn’t matter how big or small the farm is.” “Basically the No. 1 factor is management,” says Glen Snyder, agri-business manager for southern Saskatchewan with Bank of Montreal (BMO). “It doesn’t matter how big or small the farm is.” Snyder has worked in agricultural banking for over 25 years, and for more than 20 years with BMO. His career has taken him from the Canadian Prairies to Holland to South America. But when he’s asked what he likes about the business, Snyder is succinct. Agriculture, he says, “is vibrant, ever changing, never-a-dull-moment.” Country Guide chatted with Snyder to find out more about the bankruptcy process, how to avoid it and what 2015 may hold for farmers.
Misperceptions about bankruptcy If you met Snyder at a farm show last fall and asked his opinion on Broadacre’s bankruptcy, the first thing he would do is correct you. Broadacre, after all, has applied for creditor protection, not filed for bankruptcy. 38 country-guide.ca
But you wouldn’t be alone in making that faux pas. Mixing up bankruptcy and creditor protection is a common mistake people make, Snyder says. Creditor protection is the first step in the process before total bankruptcy. Generally, the courts allow the company — with the lenders’ co-operation — to continue to run. It’s initially a negotiation process. But there are deadlines for the company to submit proposals to get back on course, as well as deadlines for lenders to accept proposals. “And if they fail, then it goes into bankruptcy and liquidation,” says Snyder. A receiver is appointed to try to resolve the situation and recover money to pay off the business’s debts and liabilities. Any money left goes to the person declaring bankruptcy. Some businesses manage to steer back on course, avoiding bankruptcy. For example, Olymel purchased Big Sky Farms and it continues to operate the hog production company. There are also important provincial differences. For instance, the farm bankruptcy process in Saskatchewan is quite different from other parts of the country, Snyder says, because of the Saskatchewan Farm Security Act. The legislation requires lenders to go through multiple steps before foreclosing on farmland. Home quarters are generally protected from foreclosure, as long as the farmer is living on the quarter, although incorporated farms that put up the home quarter for a loan make that homestead vulnerable to foreclosure.
Avoiding the iceberg Broadly speaking, there are three things you can do to avoid financial icebergs, Snyder says. This applies to farms in every sector, in any province, no matter what commodity prices are doing. First of all, farmers should stay informed on both micro- and macroeconomic trends, says Snyder. “That is such a key area,” says Snyder. “And the information that you’re receiving, sit down and think about how is it going to impact your operation? And then, once you’ve looked at that, take a look at the risks.” Managing risk includes everything from mitigating production risk through crop and hail insurance to programs such as AgriStability, AgriInvest and other insurance opportunities to reduce your price and income risks. Life and disability insurance, keeping wills up to date, and succession planning all help too. February 3, 2015
business Some grain farmers use futures or options to offset market risks. Producers can also take out contract frustration insurance to cover themselves in case, for example, the U.S. border closes before they can sell cattle they’ve been backgrounding under contract for a U.S. feedlot. “It’s not a common one, but with more trade going on internationally, that’s one that’s being looked at more and more.” BMO reviews financial risks with clients at least once a year (more often if the business expands or changes). This includes looking at the balance sheet, income statement, and projected cash flows. If cash flows aren’t hitting projections through the year, BMO works with the client to figure out how they can meet their targets by year’s end. Usually, Snyder says, BMO’s account managers are able to help farm clients fix any problems through this process. Farm managers can also turn to third parties, such as reputable consultants or provincial government specialists, to review budgets and financial statements, Snyder adds. If an agricultural client needs more help than BMO’s frontline staff can provide, more specialized account managers get involved. Solutions might include liquidating some of the business’s assets, equity infusions from third parties, syndications or sale/leaseback options. It’s only when all these options fail that BMO turns to the creditor protection process.
How close are we to the iceberg? Many readers will remember the downturn in the ’80s, and some are worried that we may be heading into the same kind of riptide. Asked how today’s trough compares to that downward spiral, Snyder says that it’s similar, yet different. World grain supplies that meet or even exceed market demand are factors in both today’s dip and the ’80s price depression. But in the ’80s, it was made worse by government subsidies in the U.S., Europe and elsewhere that meant their farmers were sheltered from market signals. Today, says Snyder, those programs are quite “tuned down” and are not having a major impact on the current downcycle. Such factors combined to create a perfect storm in the ’80s, squeezing profit margins, “which, in turn, decapitalized land values and decapitalized other major farm assets, such as equipment,” says Snyder. Cash flows slowed to a trickle and farmers had trouble keeping businesses viable. So far, Canadian land values have mostly held steady. In 2007 and 2008, investors started snapping up Saskatchewan farm land. Now, however, both BMO and other major credit suppliers have noticed that “the smart money basically has been here and left.” These investors sold their land in mid-2013, and most of it was bought by local farmers, he says. “I don’t think it will have a significant impact on land values unless these tightening margins trigger a mass exodus,” says Snyder of these investors leaving the market. In that scenario, shortterm investors may bail, which could affect local land values if they hold a lot of land. Investors taking a longer view won’t liquidate, and so won’t affect land values. In the last half of 2014, large global money managers left commodity markets. This should make for less volatility in the commodity prices, Snyder says, but it also means fewer chances for farmers to lock in higher prices. Machinery purchases have slowed. Fertilizer and fuel costs are likely to be stable, or perhaps rise slightly. New equipment, chemical, and seed costs will rise a little more. February 3, 2015
What this means for you depends on which sector you’re in and what you’ve been doing the last few years. Cow-calf producers look like they’re in the second or third inning of a three- to five-year price cycle, Snyder says. The cow herd looks like it’s stabilizing. From here on, beef prices will likely be subjected to supply and price of pork and chicken in the U.S., he adds. Feedlot profitability will hinge on managing feed and feeder replacement costs, and mitigating basis, price, and foreign exchange risks. On the hog side, farrow-to-finish and finisher operations will need to focus on controlling feed costs and managing price risk, Snyder says. Lower feed costs and a weaker Canadian dollar are in their favour. Despite thinner margins on the grain side, overall BMO’s agribusiness clients are faring well, with no noticeable bump in delinquencies or arrears. Government support programs may take the edge off razor-thin margins. But Snyder fears lenders may see more delinquencies and arrears over the next year or so from clients who’ve used their equity to recapitalize or expand in the last two years. Snyder says the best advice he can give agri-businesses is to pick “a lender that understands agriculture and that has a history of supporting clients through thick and thin and through up and down profit cycles.” “You need some consistency and you need the communication,” Snyder says. “And you need the complete conversation with your particular lender.” CG
www.cyff.ca Ph: 1-888-416-2965
NATIONAL YOUNG FARMERS CONFERENCE
FAMILY FARM 2.0 – PREPARING FOR 2050 FEBRUARY 27TH – MARCH 2ND, 2015 At the Westin Ottawa - 11 Colonel By Drive, Ottawa, Ontario
Register online: www.cyff.ca or by email: cyffagm@sasktel.net
EMPOWER
ENERGIZE EDUCATE
country-guide.ca 39
Ag Outlook 2015 Understand the trends, see the opportunities
Economy
Commodities
Weather
Boost your management knowledge at this half-day event with industry experts. Hear the latest on economic trends, weather patterns, commodity markets and farm management issues, and make more informed decisions for your business. Tuesday, February 10
Medicine Hat Exhibition and Stampede
Medicine Hat
Thursday, March 12
Vic Juba Community Theatre
Lloydminster
Ag Knowledge Exchange has over 100 events that anyone with an interest in Canadian agriculture can attend, free. Presented in partnership with Country Guide.
Seating is limited – register for free today.
fcc.ca/AgOutlook | 1-888-332-3301
34078 E Ag Outlook_dbl page 15.125x10.indd 1
J.P. Gervais FCC Chief Agricultural Economist
J.P. Gervais has over 15 years of experience in domestic and international analysis of agricultural policies and markets. He’ll provide insight into major economic trends that shape the Canadian agriculture industry today. Learn how they could impact your farm in the coming year. Appearing at: Medicine Hat, Lloydminster
Drew Lerner President, World Weather Inc.
A favourite among the agriculture industry, Drew’s daily assessments of crop and weather expectations support commodity market trade and help many companies make better agricultural business decisions. Hear how weather trends and global climate change could affect your operation in 2015. Appearing at: Medicine Hat
Mark Robinson Meteorologist, The Weather Network
Mark has been storm chasing since 2000, sending on-the-ground reports to The Weather Network. He has intercepted 15 hurricanes and over 30 tornadoes across North America, including the most destructive hurricane in U.S. history, Katrina. He will discuss the weather trends we could expect to see in 2015. Appearing at: Lloydminster
Mike Jubinville President, Pro Farmer Canada
Mike is lead analyst and president of Pro Farmer Canada, an independent market analysis and advisory service he started in 1997. Benefit from his experience as he explains current and future trends in agriculture, the current state of commodity markets and what we can expect next. Appearing at: Medicine Hat, Lloydminster
Lyndon Carlson FCC Senior Vice-President, Marketing
Lyndon has 30 years of experience in several areas of agribusiness and marketing. He’s been named the Canadian Agri-Marketing Association’s Agri-Marketer of the Year and presented with the Queen Elizabeth II Diamond Jubilee Medal for his contributions to 4-H Canada. He’ll help you see where Canadian agriculture is headed and provide insights to improve your farm management skills. Appearing at: Medicine Hat, Lloydminster
2014-12-12 10:37 AM
machinery
To the South Pole and back A modified MF 5610 and its crew gets a chance to prove their stuff, retracing the route of Sir Edmund Hillary’s historic 1958 adventure to the Antarctic
t the North Pole, it was December 9, and the jolly old elf in the bright red suit was preparing as usual for his annual Christmas Eve sleigh ride. A world away, meanwhile, and even more incredibly, an expedition aboard a bright red Massey Ferguson 5610 tractor was powering its way to the geographic South Pole, following the path of explorer Sir Edmund Hillary.
Lead driver, Manon Ossevoort (front), and the expedition team at the geographic South Pole. This latest adventure, dubbed Antarctica2, was really the culmination of a marathon tractor trip that originated in Holland several years ago when 38-year-old Manon Ossevoort, a Dutch actress and adventurer, embarked on a solo trip, driving a tractor 38,000 kilometres from her native Holland to Cape Town, South Africa. Although Ossevoort had wanted even then to continue south, there was an obvious obstacle. Africa ends at the Cape of Good Hope. “It was my dream to drive a tractor to the end of the world, and I was inspired by Sir Edmund Hillary’s mission,” Ossevoort tells me, “I found that along the way my journey inspired other people to talk about their own dreams, so I set about collecting these dreams with the goal of taking them to the South Pole with me.” When Ossevoort asked the MF distributor in Holland if they would partner with her to complete the final leg of her trip across Antarctica, they and 42 country-guide.ca
AGCO’s entire European division decided to wholeheartedly jump on board. It’s not hard to see why. The potential bragging rights were enormous. And in an era of social media, the global exposure for the brand has been immeasurable. Corporate press releases relating to the expedition began flying as early as February 2013. “The latest broadcast and social media technology will also be employed… ” declared one of the early press releases. After the team got underway, live streaming and regular updates via a dedicated website kept the world informed of the mission’s progress, along with tweets, emails and satellite telephone calls. “It’s wonderful that the partners involved in Antarctica2 committed to support my idea,” says Ossevoort. “It wouldn’t have been possible without them. This collaborative effort to take on a challenge of this magnitude really encapsulates the spirit of the expedition.” “Antarctica2 is a bold and exciting mission full of exceptional challenges, and we are extremely proud to be part of it,” pipes in Richard Markwell, vicepresident and managing director, Massey Ferguson Europe, Africa, Middle East. “It fully reflects the spirit of our brand and our desire to achieve, no matter how difficult or demanding the path may be.” The Antarctica2 moniker comes, in part, from the fact this is the second time a South Pole expedition used MF tractors. Hillary’s original 1958 trek was made with Ferguson TE20 tractors fitted with tracks, and he actually sent a telegram from the South Pole thanking Harry Ferguson for use of the machines — using the mid-twentieth century version of social media. But this time, the MF tractor donated to the cause was the subject of some pretty serious technology development and testing to make sure it would survive the tough polar conditions, which saw windchill values dip into the -50 C range, despite the fact it’s summer in that hemisphere. There’s no disputing, though, that this expedition was well prepared. February 3, 2015
Photography: AGCO
By Scott Garvey, CG Machinery Editor
machinery
“Our Massey Ferguson engineering team has created the ultimate polar tractor to help the expedition tackle the elements,� said Campbell Scott, Massey Ferguson director of sales engineering and brand development. To create it, some of the hours devoted to the project by AGCO engineers were spent on their own time. They drew on expertise from Arctic Trucks, a specialty off-road truck builder that originated in Iceland, which also supplied two modified Toyotas to the expedition. Team members received training from seasoned polar explorer and Canadian resident Matty McNair and her daughter Sarah McNair-Landry, who also joined the Antarctica2 crew. The tractor and team spent time in Canada and Iceland preparing for the trip to the pole. The expedition also partnered with Castrol and Trelleborg. Castrol provided severe duty lubricants, while Trelleborg worked with the MF engineering team to develop a special, multi-purpose set of ag February 3, 2015
tires. The engineering team claims tires are more efficient for this kind of expedition than tracks because they are capable of higher speeds, reduce fuel consumption and also provide suspension. To keep the Castrol lubricants flowing inside the tractor, special heater lines were fitted around the chassis to maintain higher oil temperatures and to reduce viscosity. Plus, to keep it moving in severe temperatures, the tractor ran on jet A1 fuel. The two Toyotas followed the tractor in the polar convoy to transport team members, supplies and about 1,000 kilograms of AGCO parts, just in case. To watch for the development of any potential problems, the team gave the tractor twice-daily maintenance checks. However, it apparently logged well over 700 engine hours, virtually trouble free, despite the conditions.
The expedition team and vehicles ready to leave Novo Base on their 5,000 kilometre trek.
Continued on page 44 country-guide.ca 43
business
Above: Sir Edmund Hillary’s original 1958 trip to the pole used Ferguson tractors equipped with tracks. Continued from page 43
Left: Hillary’s cable to Harry Ferguson in 1958.
The tractor’s telematics system relayed a live stream of performance data back to engineers manning a 24-hour support team at the factory in Beauvais, France. “The journey will demonstrate tenacity, engineering skills, reliability, teamwork and achievement,” said Scott before the expedition began, “… members of the expedition team bring an ideal range of skills and experience to the project.” The expedition route started at Novo Base on Antarctica’s east coast. The first section involved a steep climb from the coast up through a mountain range. Then there was a region of dangerous glacier crevasses to cross. At the summit, the route was 3,400 metres above sea level. After putting the mountains behind them, the final leg to the South Pole was less arduous, but there was a risk of being slowed down by sastrugi (sharp snow ridges), blizzards and whiteouts. After reaching the Pole, the expedition had time for a brief celebration before turning around to retrace their path back to Novo Base and catch a ride home on a cargo plane. Ossevoort says she built
a snowman at the pole to symbolically embody all those dreams she “collected” along her entire trip. “As John F. Kennedy said about the mission to the moon in 1962, ‘we choose to do these things, not because they are easy, but because they are hard,’” said Markwell. “This is Massey Ferguson, wanting to take on a challenge and work in the spirit to achieve not only easy things, but challenging things.” Of course there is bound to be much more in this for everyone than simply the sense that they were able to meet a challenge. For Ossevoort, it’s a dream fulfilled. For AGCO and the other corporate partners, there are enormous opportunities for brand marketing that are certain to spin off. At the EIMA show in Bologna, Italy in November, a stand-in tractor made to look frost covered was the centre of AGCO’s display. After the original 5610 gets back to Europe, it will certainly make the rounds through all the upcoming major farm machinery events in the coming year. It or another stand-in tractor is even bound show up on this side of the Atlantic for a victory tour. It’s a win for everyone. CG
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February 3, 2015
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business
The right image More farmers across the country are taking charge of their image, for the good of their farms, and the good of the industry By Amy Petherick
The Quinns know they may be the only farmers that many consumers ever talk to.
ocated just 20 minutes southwest of Montreal, the farm looks a lot different today than when it was established by Elwood and Marie Quinn in 1982. It sounds a lot different too, which is just what they wanted. Thanks to Philippe and Stephanie Quinn, the farm’s second generation, the enterprise has been transformed from a “something for everyone” fruit and vegetable farm into a family-focused, farm-experience destination. If that sounds like a mouthful, it’s actually even more than that, as you’ll read below. But the crucial thing to know up front, says Stephanie, is that the Quinns are also very good at how they portray themselves to outsiders, which she says is critical for any business that depends so much on direct sales to customers.
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“Take our farm for example,” Stephanie says. “We all wear bright red shirts that say Quinn Farm in really bold letters, and although our tractor drivers will sometimes wear cowboy hats or coveralls, generally we try to look professional, we try to be modern.” The Quinns have also invested in iPad-controlled cash registers, and in high-tech sound systems normally sold only to amusement parks. In a Canada where consumers cling to a more nostalgic picture of agriculture, the marketing text books in any MBA course would likely tell you the Quinns have gone seriously, maybe even disastrously, off message. But then you visit their farm, and you notice their clientele. When your target market is children under the age of eight, Stephanie says, high-energy colours, oversized lettering, and loud noises are what you need, not plaid shirts and bib overalls. Nor can you stop halfway, Stephanie says. “Everything we do in terms of our branding, marketing, advertising and functioning on the farm is all related to that decision.” Narrowing their focus to such a defined audience ought to have been risky, especially when it meant february 3, 2015
business
“ We make unfair judgments.” — Hugh Maynard, Qu’Anglo Communications
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turning longtime loyal customers away. But the way Stephanie talks about the decision actually sounds a lot more like a risk management plan. “Places like Walmart will never have high satisfaction levels because you can’t please everybody, but you’re trying to, and that was what we were doing,” Stephanie says. “Now the people coming here are all here for the same reason, looking for the same experience, and that makes it easy to give them that because we’re focused on a single experience.” Of course, while it all sounds great in theory, that doesn’t mean it was an easy process to adopt, or an easy to process to watch, especially for the senior Quinn generation. The farm was generating great feedback from their target audience, Stephanie says. They’d hear their visitors saying, “wow this is so amazing, there is so much for young children to do” or “your bathrooms are so kid friendly.” feb r u a r y 3 , 2 0 1 5
But it did take time. “Now we see this year, year number five, the number of families that are taking season’s passes has just skyrocketed, which to us is a huge indicator that they’re seeing there’s lots to do to come back repeatedly with a family,” Stephanie says. “We’re finally really seeing that it’s worth it.” Not only has the farm been able to charge families $5 admission per person to access wagon rides, a play yard, and a petting zoo, but demand for season passes is up significantly. Meanwhile, they also found a way to reach out to the older customers who were turned off by the new youth focus. The Quinns’ produce remains available at two local farm markets for customers who don’t want the added agri-tainment experience of the farm. But even those stands conform to the farm’s brand image, thanks to Hugh Maynard of Qu’anglo Continued on page 48
armers make snap judgments too, says Hugh Maynard, president of Qu’anglo Communications and Consulting at Ormstown, Que., near the Ontario border southwest of Montreal. When it’s consumers who make those snap judgments, however, and when the judgments they make are wrong and they come at the expense of agriculture, it can create a pattern of thinking that is a bad omen for the future. Not every farm needs as complex a communications and branding strategy as Farm Quinn, Maynard says. But every farm should spend at least a little time thinking about how their actions make the bigger debate either easier or harder to win. “We make unfair judgments as to who somebody is, and as to what their capabilities are,” Maynard says. “Most of the time it’s very casual and doesn’t matter, but we do it.” Every farm has some level of public image, even if you don’t sell directly to the public, Maynard says. As a farmer, when you drive down the road, you probably make different snap judgments about the farms that you pass based on whether they seem ramshackle and disorganized, or whether they look well managed. The same goes for the public, Maynard says, so managing your image isn’t only about finding a customer, it’s all about influencing what people will feel they can expect from you, and what they think you can be trusted with. The solutions can be a nice sign for the farm, a clean pickup when you go to town, how you dress when you go to the bank, or how you answer the telephone. “You want to be the one who creates that image,” Maynard says. “You don’t want to let other people do it for you.” “It’s not rocket science,” Maynard adds. “Think out the image you want, and have a purpose.” Increasingly, your image management may have a social media context too. “You don’t need to go overboard,” Maynard says. “And you don’t need to be loud about it, but if you learn how to use it and use it effectively, then it can be a very simple and cheap tool. But it takes a little openness and understanding about how the technologies work and what you can do with them.” country-guide.ca 47
business
“You are what you wear.” — Deb Brewin, Face 2 Face Image Consulting
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eciding how to dress is always more important for women, but when you work in agriculture, the job is even tougher. The stakes are greater, because it’s your job and your business that’s in the balance. Plus, the rules are less clear. When did you ever see a photo shoot on how to dress as a farm woman? “It’s a lasting impression that you have to think about,” says Deb Brewin, certified international image consultant at Face 2 Face Image Consulting in Calgary. “You want to send a message of credibility and look approachable. You want to transmit an overall professional image.” “First impressions are crucial. It only takes three to five seconds to make a first impression and most of that is based on what you are wearing… 93 per cent of that is based on your outer appearance.” For Brewin, the first rule is to always be prepared to present a good image of yourself. “You never know who you’re going to run into,” Brewin says. “Someone you’re chatting with could become someone you want to network with down the road.” “Even myself, if I’m going for groceries or running up town, I still look presentable,” Brewin says. (Brewin does admit to bending the “always be presentable” rule. That’s because, if she is meeting other women, and especially if she is doing business with other women, she makes extra sure to think about her appearance, dressing up a little more.) Being well dressed doesn’t have to mean a closet full of expensive clothes, Brewin adds. “I talk about a capsule wardrobe,” she says, explaining that nine pieces can make 30 outfits without breaking the bank. That includes a jacket, white blouse, coloured blouse, a dressier top for evenings, black skirt, black pants, printed skirt, sweater, “and for ag women, I would include jeans in that.” “I think if you wear jeans, they should be a dark jean or black jean with a nice top and jacket. It all depends. If you’re going out into the field, you still have to look approachable. For a business meeting, if you’re selling anything, yes, you should probably wear dress pants and a jacket but you can look too stuffy in a suit.” But also keep in mind what you’re doing, and where you’ll be. “Women feel good and often feel more confident when they’re dressed up,” Brewin says. “However, you have to dress for what you’re doing for the day. If you have to go out in the field, if you have to be out checking crops, no one’s going to take you seriously if you go out in dress pants and heels. “There’s nothing wrong with wearing workboots or cowboy boots, as long as they’re clean and look presentable. That, to me, still shows professionalism.” That said, Brewin adds, “It’s always wise to carry a dressier shirt or a jacket with you just in case something comes up.” Also remember that there’s more to image than your wardrobe. Cleanliness is crucial. And, she adds, “If you’re smiling, and you look good, and you feel good, you are exuding confidence and happiness. And people are attracted to that!” “The first thing you should put on in the morning is a smile, because positive attracts positive.” Not surprisingly, there are expert tricks too. “If you wake up in the morning down and out, blue is very therapeutic and helps to lighten your spirits. It’s a great colour for everybody,” Brewin says. “Colours around the face can send a message. Red is powerful, outgoing, and happy and navy, instead of black, is a more approachable colour.” Black means security, peace or chic. Green is wisdom. Purple is thoughtfulness. Grey is more conservative and another great colour for a suit. “We’re all human and will look at a person and make a judgement call. They could be wonderful workers but I would rather work with somebody who takes care of themself and is a confident person and carries themselves well.” “Looking presentable shows you pay attention to detail.”
Continued from page 47 Communications and Consulting, who also happens to be Stephanie’s dad. Hugh says by going with a red awning and red table cloths, and by outfitting staff with La Ferme Quinn red shirts in a sea of white kiosks, they stand out. But more importantly, he says, the customer experience remains consistent. “The main thing with image is to be consistent,” Hugh says, “so that when people show up, they know what to expect, both in what they buy and who they are dealing with.” Hugh says most of the work his company does is general communications work, but Quinn Farm contracts him and his staff to do all their off-farm marketing, and to operate their farmer’s market stands all summer. “They’re so busy running the farm, they don’t have time to get out there and do that,” he says. Even if it’s not serving their primary target audience, Stephanie says attending the markets allows them to talk to their customers about their food, which is one of the reasons why she and her husband decided to get into farming in the first place. “Farmer’s markets are one of those few opportunities where you can reach out, because these people are engaged in their food system and have very complex questions about their food,” Stephanie explains. “Even with all my dad’s experience with agriculture, every week he comes back with questions he couldn’t answer that we have to then provide the answers for.” Meanwhile, Hugh says the intense marketing strategy that La Ferme Quinn has implemented is rare. Nor would it be a good choice for many farms, particularly those that don’t sell directly to the consumer. But that doesn’t mean a farm has to be shipping livestock around the world to justify investing in a little image development either. Just consider if there was ever an accident or spill in a community. Image won’t absolve a farming operation from negligence, Hugh says, but it will play a part because people are quick to come to conclusions about how much blame should go in which directions. Building a relationship of trust and understanding helps make sure that those first crucial judgments are sympathetic, or at least not hostile. “It’s assurance, not insurance,” Hugh says. On La Ferme Quinn, Stephanie even runs to putting higher-priced help in the parking lot to be the first point of contact for new arrivals, because managing the image is just that important.
The basics It starts with actually thinking about the image you want to portray, and with having a purpose. “If you don’t really have a purpose, why bother?” says Hugh. “But even if it’s as simple as saying we want to have a good public image with the neigh-
4 8 c o u n t r y - g u i d e . c a febr u ary 3 , 2 0 1 5
business bours and nothing else, then you have something to follow through on.” Quinn Farm used to spend $15,000 a year advertising in local newspapers, with no idea of the impact, how many people saw the ads, or how many of those who did were actually motivated to show up at the farm because of it. So now, the Quinns have gone 100 per cent to Google ads, which means they can tell exactly how much it’s costing them per customer to get that message out. They also know pretty much within a couple dozen of people, that if 500 people view their ad on Friday, 400 will show up on Saturday. That, as they say, is the power of modern technology. While it’s a critical part of maintaining a positive image for her farm, Stephanie believes it’s becoming even more important for agriculture in general. As the only farmer some people ever meet, Stephanie says she ends up taking questions about all aspects of modern farming. Most of the questions, she laments, are inspired by misleading blockbuster films and YouTube videos. The challenge for her, as a visibly modern farmer, is to show customers she cares as much about the environment and animal welfare as the “traditional” farmer would. “We’re not doing a very good job as farmers of giving them those positive messages,” Stephanie says. “They’re hearing all of those really horrible, awful stories about animals being abused and they’re not hearing the story about how much farmers are investing into these cow mats for cow comfort; they don’t know how many farmers are really concerned about making sure they’re comfortable for longevity. Luckily, I come from a farming area and have friends that are in dairy so I can answer those questions — even though we don’t do dairy — because we’re the only farmers they know.” “What we’re finding now is, 20 years ago, a lot of people in the city had grandparents who farmed, or if they were recent immigrants, in a lot of those countries there are still a lot of farmers, so they were closer to the land. They’re not anymore, to the point that we could write a book about people showing up in February to pick apples or they come to pick strawberries and can’t understand why 10 things aren’t ready to pick in strawberry season. They really have no february 3, 2015
“ That’s what’s hard,” Stephanie says. “It’s trying to change the image so the expection is a modern farmer has technology and business skills.”
comprehension of when things are ready or how we grow them.” “We need to create the emotional connection with a modern farmer that people have with that image of the traditional farmer who has some chickens and some pigs and some cows and wears overalls,” Stephanie says.
“So that’s what’s hard in our farming industry,” Stephanie says. “It’s trying to change the image so the expectation is that a modern farmer has technology and business skills. That’s a really big challenge. We see it here. It’s a huge image to manage.” CG
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country-guide.ca 49
CropsGuide
By jay whetter
The ultimate N rate for canola If we could predict the weather perfectly, it might be different, but in the real world, the best tool to determine nitrogen rates is the soil test. It’s a great starting point for 2015 ne lesson from the Ultimate Canola Challenge is that it’s a wise economic decision to follow your soil test recommendations for nitrogen. “We have always recommended soil tests to get an idea of the nutrient situation in a field, and what really pleased us about the Ultimate Canola Challenge results is how strongly they confirmed this practice,” says Dan Orchard, agronomy specialist for the Canola Council of Canada (CCC). The CCC has run the Ultimate Canola Challenge (UCC) the past two years to see what products and practices could further improve farm yields over and above those achieved by following standard best practices. Results from 17 sites across the Prairies (eight in 2014 and nine in 2013) show that best management practices still rule. “After two years of trials at random locations across the Prairies, additional products and practices have not shown they enhance results or increase profitability,” Orchard says. “The next step with
Dan Orchard (l), and Murray Hartman diagnose field nitrogen status in a project to identify optimum rates.
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UCC is to test products and practices more regionally. We hope to understand how these products and practices — including micronutrients and primers, for example — work under varying soil and environmental conditions.” Best management practices used in UCC trials were recommended by a panel of experts, including provincial extension staff, Agriculture and Agri-Food Canada (AAFC) researchers and CCC agronomists. “When it came to setting fertilizer rates for UCC, our general nitrogen and sulphur rates were not significantly different from the lab recommendations in most cases,” Orchard says. “I will add that while nitrogen and sulphur soil test recommendations were most often determined to be accurate, members of the panel debated soil analysis recommendations for phosphorus, potassium and micronutrients and were more likely to adjust these rates significantly to suit their assessment of need at each site.” Once the UCC panel determined the best nitrogen rate for each site, they set up trials with nitrogen applied at 75, 100 and 125 per cent of that recommended rate. Results for 2013 and 2014, averaged across all 17 sites, were 56 bu./ac. for the 75 per cent rate, 59 bu./ac. for the 100 per cent rate and 60 bu./ac. for the 125 per cent rate. The 125 per cent rate was achieved by two methods — either with 25 per cent more added at time of seeding or 25 per cent more as foliar top dress. “There was no advantage for top dress over additional fertilizer at seeding, and neither provided a statistical or economical yield increase over the 100 per cent rate, on average,” says Murray Hartman, provincial oilseed specialist for Alberta Agriculture and Rural Development and member of the UCC panel. A statistical and economic disadvantage was evident, however, when nitrogen was decreased to 75 per cent of recommended rate. Going from 75 to 100 per cent will cost growers an extra $15 to $20 per acre, based on typical N rates, but in UCC trials this investment produced a three bu./ac. increase in yield, on average. Hartman adds that the majority of the sites (but not all) were low in soil test nitrogen and were therefore responsive to nitrogen fertilizer. This is the situation most likely to produce an economic gain february 3, 2015
canola
when increasing nitrogen from 75 per cent of the recommended rate up to the full recommended rate. “I would stress that achieving more yield per acre with additional nitrogen fertilizer is most likely to occur with low-yielding fields that have been fertilized less than the soil test recommendation,” Hartman says, adding, “Trying to push high yields even higher with more than recommended rates of nitrogen is not supported by this data and thus isn’t a wise strategy.” Orchard notes that the UCC was not designed to test lab recommendations. “But the results reassure us that current lab recommendations are a great starting point for achieving target yields.”
How much N does canola need? Nutrient uptake and removal tables used by the Canadian Fertilizer Institute suggest that canola needs 3.0 to 3.5 pounds per acre of available nitrogen per bushel of seed yield. (Of that, about 60 per cent is removed in the seed and about 40 per cent is in plant material left in the field.) This amount includes nitrogen from all sources, including soil reserves and mineralized plant material. Fertilizer supplies part of this need, not all of it. Nitrogen rate recommendations from soil test analyses include consideration for crop rotation, soil organic february 3, 2015
matter, previous yields and, of course, nitrate levels in the soil sample. Recommendations are generally around 2.0 pounds of nitrogen applied for every bushel produced when yield targets are at the top end of the range, and around 2.5 pounds per bushel when yield targets are mid-range. “Growers know that this is very dependent on application timing, the amount of moisture through the growing season, heat during flowering, and other environmental factors that can influence yields — no matter how much nitrogen is applied,” Orchard says. “But grower experience seems to support these numbers.” The CCC and AAFC conducted a survey of 996 canola growers from across the Prairies in 2011. Based on grower responses, nitrogen rates averaged 2.3 pounds of actual N for each bushel of canola when yields were in the midrange (mid- to high 30s) and as low as 1.6 pounds of N per bushel for top end yields (in the 60s). “Top yields tend to come in high organic matter soils and in good moisture situations. This combination of factors will result in high levels of mineralization — which can explain the lower N-to-yield ratio in high yield situations,” Orchard says. “Top yields are also hard to predict and plan for. So top yields aside, these numbers do support the 2.0 to 2.5 pounds of nitrogen per bushel start point when setting nitrogen rates for average to above average yields.”
Winter and spring soil samples Soil tests in late fall provide a close representation of nutrient levels in the spring, and give growers time to process samples and get results and recommendations. Soil sampling in winter is an option, although it helps to have a layer of snow to keep soil from freezing solid. Clear the snow, then probe. The key is to keep the sample cool — 5 C to 10 C, not frozen — and get it to the lab within a couple of days. Don’t put it in a tight sealed container. The Soil Analysis Handbook states that “field-moist soil, when placed in an air-tight container, can undergo significant biological changes at room or elevated temperatures” within days. “If you do plan to take a winter soil sample, talk to your lab first to see what specific requirements they have,” Orchard says. Spring tests are the most accurate in predicting the soil nutrient situation at seeding time. Labs may be able to provide results within a few days or a week, so spring tests can be done without holding up the seeding process. For more on soil sampling, go to the Canola Encyclopedia at www.canolacouncil.org/canola-encyclopedia, find the Fertilizer Management chapter and click on “Identifying fertilizer requirements.” CG Jay Whetter is communications manager with the Canola Council of Canada. country-guide.ca 51
CropsGuide
By Gord Leathers
winning pulses There’s a compelling economic and agronomic case to be made for pulses, not just soybeans f you ask Lee Moats why he grows pulse crops on his farm, he doesn’t have to scramble very hard for the answer to that question. “It’s about money,” the farmer and vice-chair of the Saskatchewan Pulse Growers Association told Country Guide during a recent discussion. On his farm at Riceton, Sask., Moats says they’ve been growing pulse crops for the past 24 years, and the numbers place the crop at the top of the rotation. “I would bet that lentils provide the highest net income per acre over that time period,” Moats says. Other growers in the province have voted with their equipment, and these days every year sees something close to 1.7 million acres go into the ground in Saskatchewan. One of the big reasons those numbers make sense is because of a notable agronomic feature of the crops — their ability to fix their own nitrogen. They fix atmospheric nitrogen and convert it to nitrate nitrogen that’s immediately usable by the crop. “That’s really important because it means that our nitrogen input into pulse crops is zero for all intents and purposes,” Moats says. “It’s supplying its own, and that of course is a cost reduction.” Purely economic considerations aside, more and more consumers and companies are also paying closer attention to the environmental bottom line, another way the crops stack up nicely. “With sustainability questions on a number of fronts, if you include pulse crops in your rotation, your carbon footprint goes way down,” Moats says. In a lot of ways, growing nitrogen is a bit of back to the future for farmers. Before Fritz Haber and Carl Bosch invented an industrial process for fixing nitrogen from the atmosphere so it could be delivered to farm fields, it was essential in any farmer’s rotation to include a legume crop. Most were forage crops like clover or alfalfa, which fed livestock like draft horses. These days there are a lot fewer horses on farms, and subsequently a lot fewer forage acres, leaving a nice niche for pulse crops to fill. Because while there’s a lot of control that comes with carefully feeding a crop with chemical nitrogen, it costs money and it ignores some of the underlying relationships that exist in fields. For example, legumes also encourage nitrogen-fixing bacteria, further amplifying the effect.
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They also leave a high-residue nitrogen that helps keep some bills low, while also helping to pay others, says Neil Whatley, Alberta Agriculture pulse crop specialist. “There’s residual nitrogen left over for the next couple of crops,” Whatley says. “Pulse crops have a higher nitrogen-to-carbon ratio, so it provides a little bit of soil nitrogen to those other crops through the next growing season. So a wheat crop, after a pulse, usually gets higher protein because the wheat takes it up later in the growing season, and that translates into protein.” It also adds diversity to the rotation, giving farmers an alternative to a two-crop rotation of wheat and canola. This does two things. First it provides a disease break with a longer stretch of time between a cereal and canola crop. Since pulses are susceptible to different diseases, there’s then more time for the inoculum of established cereal crop diseases like rust or fusarium to break down in the soil, and a similar pattern occurs for blackleg in canola. The second is the ability to rotate herbicide products. “You can use different herbicides, things like Odyssey, so we’re talking Group 2 and then something like Poast, which is Group 1,” Whatley says. “So you’re using different modes of action for another whole plant family. You actually reduce the chances of weeds developing herbicide resistance.” Another pulse crop specialist, Manitoba’s Dennis Lange, agrees the addition of herbicide groups is a good thing, but adds this is one of those areas where there can be a bit of a saw-off for producers. Weed control with some of the pulse crops, especially ones like edible beans, can be a serious challenge, he says, and it may require a higher level of management, such as incorporating a pre-emergent application of Edge or Treflan. “When it comes time for growers to spray, the conditions may be a little cooler than ideal and that makes weed control more challenging,” Lange says. “Not only can they choke out yield but they can also cause quality losses. If you have too many weeds in the field, come harvest time, if those weeds are still green you get this staining from the moisture of the weeds.” Another trade-off is field preparation and selection. Many of these crops, in particular field peas, ripen close to the ground, making for some big harvest challenges that can only be managed at the start of the season by rolling fields. Rolling serves to flatten the ground and punch stones back under the surface, keeping both dirt and stones out of the combine. A flex header will do a better job of harvest, but it’s no guarantee of safety. There’s also the issue of what the crops themselves require from a field. In most cases, the answer february 3, 2015
Pulses & special crops “ If you include pulses in your rotation,” says Saskatchewan lentil grower Lee Moats, “your carbon footprint goes way down.”
to that question is good drainage, says Saskatchewan provincial pulse crops specialist Dale Risula. “They don’t like wet feet, so we’ve seen problems develop with root rot organisms that have shown up in the pulses and can be quite devastating to a plant which is strongly dependent on a good, healthy root system,” Risula says. “You probably want to have a lighter-textured soil, fairly flat but draining well and not compacted. That’s generally what we’re seeing right now with the pulses.”
All that adds up to some pockets of production for the various crops throughout the Prairies, depending on local soils and production climate, grower base and other variables. With 1.7 million acres, primarily of peas and lentils, Saskatchewan is definitely the big player in the game. Alberta and Manitoba are also significant producers of the crops, but smaller. In Alberta there’s a wide variety of various pulse crops grown, says Whatley. About 70,000 acres of edible beans were grown, for example, mainly in and around Lethbridge and Bow Island, where there’s irrigation. “These are fairly minor crops,” Whatley says.
The main Alberta pulse crop is field peas, with about one million acres planted, throughout the province. Red lentils are another cropping option, with between 100,000 and 140,000 acres. “It’s steadily growing in the dry to moderately dry areas in the southeastern and east-central parts of the province,” Whatley says. In Manitoba, it’s a tale of two distinct regions, says Lange. “If you were to draw a line from Altona then to Winkler, up to Carman and over to Portage la Prairie, that’s where most of the edible beans are grown,” says Lange. “If you were to go to the western part of the province, most of the field peas are grown there.” CG
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country-guide.ca 53
CropsGuide
By Clare Stanfield, for WGRF
The mechanics of straight cutting canola It’s a question more canola growers ask with every harvest. Do I go straight cut or swath? rankly, it’s not always easy to make harvest decisions because a lot can depend on variables beyond a grower’s control. But of the factors that a grower can control, the research until now has been weighted fairly heavily toward the crop itself — varietal suitability, optimal harvest timing and so on. What about harvest equipment? “We’ve been raising the flag on that for a number of years,” says Nathan Gregg, a project manager in applied agricultural services for the Prairie Agricultural Machinery Institute (PAMI) in Humboldt, Sask. One of the main concerns with straight cutting is shatter loss, and PAMI wanted to study the role equipment plays in that loss.
Better together It is said that we are stronger when we work together, and nowhere is this more apparent than in the long list of participants in PAMI’s three-year project looking at canola straight-cut harvest systems. Funding is being provided by: • Western Grains Research Foundation • Saskatchewan Ministry of Agriculture and the Canada-Saskatchewan Growing Forward 2 bilateral agreement, administered through the Saskatchewan Agriculture Development Fund • SaskCanola Project Partners are: • Indian Head Agricultural Research Foundation • Wheatland Conservation Area Inc. • Harvest systems and statistician consultants Project co-operators are: • Honey Bee Manufacturing • Case New Holland • Bayer Crop Science
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Then, in 2014, a consortium of funders (see sidebar), including Western Grains Research Foundation came together to find out what kind of combine headers work best in a straight-cut system. “We are the principal investigators in a collaborative research team, and 2014 was the first year of a three-year study,” says Gregg. What’s interesting about all of this is that while the Canadian canola producers are tying themselves in knots about straight cutting, it’s the dominant canola harvest system in Europe. They even have combine headers specifically designed for the job. Couldn’t we just use those? Perhaps, says Gregg. But the fact is that growing conditions in Western Canada, not to mention our far shorter harvest window, may not make this a practical solution for all growers in all years. “Our purpose with this research is, if there is going to be a progression to straight cutting, what can a farmer do — because not everyone can afford to go and buy a specialized header,” says Gregg. “We want to find out what adjustments farmers can make to achieve successful straight cutting.” In the first year of the study, the main goal was to establish some benchmarks for shatter losses using four different equipment configurations (known as treatments) on two different canola varieties. Three of the four treatments were for straight cutting, while the fourth was standard swathing to act as a check. For straight cutting, the study used a draper header, rigid auger header and a European-style header, which has a hydraulically extendable cutter bar that allows the knife to be placed beneath the reel instead of behind it. All four treatments were used on a standard canola hybrid (InVigor L130) and a shatter-resistant hybrid (InVigor L140P) on two field sites (Indian Head and Swift Current) set up in a replicated split block design (each block is split in half, with one variety on either side, and each half of the block receives all four treatments; treat-
ments have four replicates, or blocks, in the field). “We used field-scale machinery with 35-foot headers, so these are not your fourfoot plots,” says Gregg. “We targeted optimal harvest dates,” says Gregg. “So we swathed the check at the optimal time according to industry guidelines and that became the start date of our trial. Now, canola seeds are pretty small and bouncy, so collecting shatter losses was no easy task, and researchers aimed to look at losses prior to, as well as during, straight cutting. “We wanted to get a sense of losses from just leaving the canola standing, so we put collection pans out in the standing crop on the day we swathed the check,” he says. “We put 40 or 50 trays across the whole field to get a sense of overall loss for each variety.” Shatter loss collection got even more intense once straight cutting began. “We strategically placed the pans between the rows so that any losses from the reel, knife — any part of the header — would be collected,” he says. “We put 10 pans across the width of the header at four locations within each treatment.” The split block design means that there were 960 collection pans at each field site, for a total of 1,920 shatter loss samples to analyze — in addition to the pre-harvest collections. Other than the headers, everything stayed the same during harvest, from driving speed to reel, knife and threshing speeds. “We didn’t want to throw in confounding or confusing data,” says Gregg. It makes sense: for example, if they had used a faster reel speed on the draper header and wound up with higher shatter losses, how could they be sure those losses were attributable to the header and not the reel speed? “Next year, we’ll be able to play a bit with other factors,” he says. Header height and angle, reel speed and height, knife speed, crop dividers/vertical sideknife, reel position, auger/draper speed — these are but a few of the variables february 3, 2015
WGRF that could be looked at in coming years. “We needed a little field time to narrow the scope and see which ones matter.” Gregg and the PAMI team have cleaned and weighed this year’s shatter loss samples, and are now in the midst of data analysis. Still, he says there are a few anecdotal observations to share. “I can say fairly definitively that the shatter-resistant variety did outyield the non-resistant variety,” he says. “I don’t know by how much yet, or if it’s a statistically significant difference, but at one location where we had a significant wind event, you could actually see that in the field.” As for the header configurations: “All treatments worked well,” says Gregg. “You couldn’t pick one out and say that it just didn’t work at all. Going in, we thought we might see more loss at the crop divider, and based on the shatter trays, there seemed to be more loss at the edges of the headers. How much of that is attributable to the vertical knife at the crop divider, we don’t know yet.”
The next two years of the project aim to find that out, and more. “The reason we’re doing this is because farmers are asking questions,” says Gregg. “Some have tried and failed, others have had great successes. People are asking — how do you actually do this?” And how do they cost it, too? “There may be an economic advantage to not doing that swath operation,” Gregg says. “But we wanted to put a cost to straight cutting — because you know you’re going to have some costs. We want to be able to say, if you have a rigid header, that X is the economic impacts to using it to straight cut your canola. “I don’t think this is going to be a one-size-fits-all solution,” says Gregg, explaining that this research is not meant to come up with a “winner” in terms of a header design or modification that is the ideal for straight cutting in all conditions — that’s impossible. “But hopefully, over the three years of the study, which is a minimum of six site years, we can see some trends over the
Western Grains Research Foundation (WGRF) is a farmer-funded and -directed non-profit organization investing primarily in wheat and barley variety development for the benefit of western Canadian producers. Through investments of more than $57 million, WGRF has assisted in the development and release of more than 100 new wheat and barley varieties over the past decade and a half, many of which are today seeded to large portions of the cropland in Western Canada. WGRF also invests in research on other western Canadian crops through the endowment fund. In fact, since 1981 the WGRF endowment fund has supported a wealth of innovation across Western Canada, providing over $26 million in funding for more than 230 diverse research projects.
diversity of conditions, and give farmers the full spectrum of possibilities so that they can make informed decisions about equipment for straight cutting canola.” CG
A hopper full of best-in-class technology. Through Western Grains Research Foundation, producers have helped fund research and development for more than 200 varieties of wheat and barley. You most likely recognize more than a few of them, and you’ve probably had some success growing several of them too. Western Grains Research Foundation is a producer-funded and producer-directed organization. Working together, we produce some of the world’s finest and most technologically advanced grains.
@westerngrains westerngrains.com
CropsGuide
By Gord Leathers
Lab on a chip New technology is bringing the science lab to the field for better, faster scouting decisions t’s a sentence nobody likes to hear, especially in the midst of all the time pressures and the short windows of farming today. “I’m not sure about this, we’d better send a sample to the lab.” It might be an agrologist or crop scout who says it to you, or a plant pathologist or veterinarian, but the concern is the same regardless. You’ve got a problem that needs looking into — which means it’s a problem that is costing you money — but now you have to wait for the diagnosis and the cure, and that could add up to a long chain of inconvenience and delay. On the farm, there will be samples to collect and to prepare and send, and at the other end will be a highly trained technician, surrounded by pricey equipment and a whole lot of other samples from other sources that are just as pressing. That technician will have to perform an elaborate procedure and then report the results, and until that happens the farmer must simply wait. Now, however, emerging microchip technology is about to change all that. The concept is known as “lab on a chip” technology, and the idea is to perform many of the basic laboratory procedures, using a specialized microchip programmed to perform onthe-spot chemical analysis. “Folks in basic science and engineering have latched on to the idea that we can take the modern laboratory, which is housed in a large room containing many pieces of expensive equipment, and miniaturize the entire thing onto a hand-held device,” says University of Toronto chemistry professor, Aaron Wheeler. “This could allow us to take the lab out in the field and do analyses in remote locations, work with very small samples and do some types of experiments more efficiently than we can using conventional methods.” The idea has actually been around for a while but it had to wait for the technology to catch up. The first microchips were developed in the 1950s and by the mid-’60s they were used in pressure sensor manufacturing. A decade later, a group of Stanford chemists started looking at microchips as a new way of doing lab-based chemistry, not just through computing, but developing the chips as a substitute for the laboratory itself. As chemistry has matured so also has the laboratory. The traditional burners, beakers and flasks have been supplanted with mass spectrometers, computers and a whole array of sophisticated technology that helped speed up both experimental technique and the data crunching. 56 country-guide.ca
By the mid-1970s, the electronics revolution was well underway and the microchip became the foundation of computer technology. As we understood more about the physics of microchips, we found other uses for them beyond computers and they found their way into just about every common appliance. “There’s a real Canadian success story here too,” Wheeler said. “Professor Jed Harrison at the University of Alberta was one of these folks in the early 1990s who really started looking hard at how we can miniaturize chemical instrumentation to form labs on a chip.” Harrison took a long look at lab procedures and developed glass or silicon chips that could perform the same tasks at the micro level. Micro samples of any liquid were drawn down the tiny channels, many of them thinner than a human hair, and then the samples were run through the electrical fields generated within the chip. The chip could then collect the data and perform the analysis. “You’re really talking about small samples, a droplet of rainwater or a small globule of oil,” Wheeler says. “You’re working in a regime that’s non-destructive where you’re using so little sample to do the analysis that your main product is unaffected.” This is a game changer. Routine analysis can now be done on the spot with a device that a lay operator can use. Taking the lab out of the loop saves huge amounts of time by doing most of the routine procedures on the spot. Now the lab can be better used to take on more complex problems. The medical industry was the first adopter. “I collaborate with a large multinational company called Abbot Diagnostics, and it has a subsidiary company called Abbot Point of Care, located in Ottawa,” Wheeler says. “They manufacture the I-Stat, a hand-held instrument that does many of the clinical tests that one needs to do with patients coming into a hospital emergency room. It’s another Canadian success story.” The I-Stat has become part of the first line of emergency triage. An attending nurse puts a few drops of blood in the unit and a disposable chip cartridge runs the sample through some of the standard tests. The results are available in minutes with no trip to the lab. By developing chips for other uses, it’s possible to adapt the technology for veterinary medicine, environmental monitoring and crop scouting. Continued on page 58 february 3, 2015
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CropsGuide
Aaron Wheeler at the University of Toronto is working to shrink an entire lab onto a hand-held device that farmers can use in the field Continued from page 56 “We’re straddling the line right now,” Wheeler says. “We’re already realizing some of these benefits, but we can talk of some potential applications such as using these labs on a chip out in the field to sniff for dangerous weapons, to detect various biological events or to detect various chemical events. There’s a company in Alberta building devices to send down into oil systems to do on-site analysis of the type of oil that they’re bringing up. The range of applications is just endless.” A cheap, simple-to-use device that identifies organic compounds would be extremely useful in both livestock and crop farming. Existing medical technology can easily be adapted for veterinary use so many of the routine diagnostics there can be programmed into an on-farm version of the I-Stat. Farmers themselves could use them to do their own diagnostics. The same is true for crop scouting. We know that plants release identifiable chemicals into the air when they’re stressed. A chip programmed to take air samples and look for plants damaged by either insects or disease could help localize and treat minor problems quickly. Marrying this technology to a smart phone or laptop could connect the field instrument to a more elaborate wet lab if a farmer needs
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outside expertise. A vet or crop scientist can make a faster diagnosis if the basic lab work is already done. We’ve seen microchips get smaller, cheaper and more powerful. We’ve also seen new manufacturing techniques that can make these things even less expensive and more flexible. Another exciting innovation is using a 3D printer to manufacture chips. “Once you have common automatable techniques like ink jet printing, it becomes quite straightforward to set up roll-to-roll processing where you’re generating millions of devices very rapidly,” Wheeler says. “One thing my lab has kind of capitalized on is printing our devices directly on paper substrates.” Cheap electronic devices made from paper with the circuitry printed on it could be the future of field diagnostics. The farmer of the future may have a box of these things sitting on their desk or in their workshop. These things could even be programmed for machine diagnostics. There could come a day when just about any on-farm problem can be diagnosed and solved on farm with cheap and rapid devices. “In my sort of small corner of the world we get stuck in the area where we have these wonderful super-competent experts in our laboratories,” Wheeler says. “It’s a real challenge to kick the technology out of the nest and make it robust enough that anyone can use it.” CG
february 3, 2015
CropsGuide
By anne cote
Better, not bigger Precision farming is giving more farmers the power to control how many acres they need to crop he colours of agriculture are changing. Today a trade show is a patchwork — three shades of green, several types of red, the standard blue and even some yellow. But farmers aren’t just looking at the colour of the paint when they shop for tractors and implements these days. According to Henry Holtmann, vice-chair of Dairy Farmers of Manitoba, rising input costs mean farmers are trying to be more efficient. “When a bag of corn seed costs $200 and it only seeds around two acres, you want to be as precise as possible,” Holtmann says. So farmers like Holtmann are turning to precision agriculture, an interactive computer-generated data collection and management system that allows them to analyze and adjust to almost every aspect of their operation. Holtmann uses precision agriculture in his dairy and for his field crops. There are 1,000 cows, heifers and calves on Holtmann’s 2,700-acre family dairy farm, Rosser Holsteins, where they grow corn, alfalfa, barley, and oats for feed. They grow cash crops including soybeans and canola, on the land not used for feed production. Holtmann says he’s been using precision agriculture in the dairy barn for years, measuring feed and tracking production levels and quality of milk. He uses it to monitor the activity of each animal and what and how much feed it’s receiving. Accuracy is the keyword. With “real time feeding and measuring of the feeds” Holtmann is able to adjust rations from a remote computer using WiFi to ensure the cows are getting what they need. He can even check if the milking activities are following protocol and problem solve using this “bird’s-eye view.”
It isn’t about bigger or smaller equipment, says farmer Henry Holtmann. It’s all about how efficiently you farm.
A recent event at the dairy has Holtmann considering a new purchase. An early season snowfall caused a drop in milk production just days later. Holtmann says a hand-held infrared sensor would have saved almost $1,200 in production loss because the feed weights were skewed by the moisture content from the snow, which meant the cows weren’t getting enough feed. If he’d had the technology, he could have adjusted the rations immediately without losing production, and the cows would have been a lot happier too. Holtmann also invested in precision agriculture systems to grow his crops. He says a farmer has to choose a system carefully. The wrong choice can be costly. Choosing the right data collection system for a farm operation is as critical to the success of the farm as buying the right tractor and implements, he says. Systems range from just under $1,000 for a basic GPS designed to guide a tractor along the field rows to eliminate overlapping distribution of seed or fertilizer right on up to $20,000 or more, according to Tammy Epple, sales marketing manager for Outback Guidance. She says the more expensive the system the more information it will provide. Epple says precision agriculture has quickly evolved from a basic GPS satellite guidance system in a tractor that was initially designed to prevent overlapping. Now the systems have sophisticated software that tracks yields and provides detailed application maps for every field on the farm, even telling the sprayer when to spray and how much to spray on a particular part of a field. “It’s all about return on investment for the farmer,” Epple says. She says her company focuses on being able to provide software that’s compatible with all equipment, no matter what colour it is. Holtmann agrees that it’s a far cry from straight GPS. Farmers want an information system that will “talk” or interface with equipment from a variety of manufacturers rather than a system that will only talk to one line of equipment. He says the first purchase is critical. Once a farmer purchases a system they’re tied to it unless they’re willing to take a loss and purchase a new one later. Accessing more advanced systems in the future can be costly. According to Holtmann, there are several things a farmer needs to consider when buying a precision agriculture knowledge system. First is compatibility. He says if the system is ISO compatible, then a farmer is more interested in it and willing to pay more because it has the ability to talk to different manufacturers’ Continued on page 60
February 3, 2015
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CropsGuide Continued from page 59 implements and adapt to new software. In addition, the system must allow the farmer to change instructions on the go in the field and then record that data. Holtmann adds that although GPSbased systems can ensure there’s no row overlap for either seeding, fertilizing or spraying, any new system should also ensure every seed is placed correctly for maximum development and yield. The system should also allow the farmer to adjust seed placement right from the cab, whether it’s seed or row spacing, it’s important to be able to control it. “If you start measuring the number of seeds per acre and the amount of yield you get back, then you can start doing the analysis for precision agriculture… then you can make some decisions,” Holtmann says. Holtmann is using precision agriculture software with corn now but, in his estimation, the technology isn’t ready for soybeans. When his comparisons indicate there’s a benefit to investing in the equipment and the software for that crop, he says he’ll buy it. “Over the next 10 years our priority is changing [our] equipment and information technology to better use the resources we have,” Holtmann says. It’s not about trading in a 30-foot seeder for a 60-foot seeder, he says. It’s about getting more precise in that 30 feet. The main consideration for new investments for precision agriculture at Rosser Holsteins is the ability of the equipment to adapt to changing needs. Holtmann
Self-steering systems might have seemed a self-indulgence only a few years ago. Today, they’re the foundation of an ultra-efficient approach to low-cost, high-yield crop production. says they’ll consider how the equipment talks to the information system they’ve tied themselves to and they’ll be looking for guidance on the actual information technologies or variable rate technologies as they become available. “That’s where we’re going,” Holtmann says. “Those are the things that interest us and that’s how we’ll make those decisions.” They’re willing to spend the money to invest in an information system that will provide additional information as time goes on, he adds.
But equipment and software designed for precision agriculture is expensive, and Holtmann says that when he does buy more advanced systems, he’ll do it gradually, replacing his fleet of tractors, equipment and software on a schedule. The reason for investing in precision agriculture is simple, says Holtmann: If you can’t measure it, you can’t make a decision. “We’re not looking at getting bigger,” Holtmann says. “We’re looking at getting better.” CG
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Capitalize on your opportunities and reap the benefits of your growth! This conference could change your life. Join women from Ag and related businesses as they reveal the secrets to their success. Attend in Calgary or Toronto - or both. Early Bird and Group Rates available now. Register today! Visit advancingwomenconference.ca or phone 403-686-8407. HYATT REGENCY CALGARY, APRIL 6 & 7, 2015
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february 3, 2015
Advancing Women Conference / Canadian Cattlemen 7” x 3.357” / Alberta Quote
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Keep your balance while taking benzodiazepines By Marie Berry enzodiazepines are a large group of drugs that work through the nervous system to reduce anxiety and alleviate sleeplessness. Common members include diazepam, oxazepam, lorazepam, temazepam and alzprazolam. First discovered in the 1950s, they were observed to have “taming” effects on several animal species, with the effects in monkeys leading to clinical trials in humans. Today, benzodiazepines are taken on a chronic basis by about four per cent of Canadians, but when used for anxiety or insomnia, these drugs are actually intended for short-term use only and at the lowest possible doses. For example, for sleeping problems, the actual recommendation is no longer than seven to 10 days, and if usage continues for two to three consecutive weeks, a complete re-evaluation is recommended.
Benzodiazepine use can contribute to falls in all age groups. Only take them for the shortest time As you may realize, however, many people take these drugs on an ongoing basis for sleeping. Ideally, if you experience anxiety or sleeplessness, identifying the cause and remedying it is more effective than taking benzodiazepines. Keeping a diary of symptoms and your daily activities might point to some activity or situation that may be problematic. Non-drug approaches can also be tried, such as relaxation techniques, counselling, sleep hygiene and even exercise. An increased risk for falls and broken bones is a possible complication of benzodiazepine use. You may think that it is only the elderly or even people in nursing homes who may have this increased risk, but anyone can be affected. It also seems that you are at the greatest risk within the first couple of weeks of beginning a new prescription or new dose of a benzodiazepine.
Benzodiazepines inhibit a neurochemical in the nervous system known as gamma aminobutyric acid, which in turn reduces anxiety and induces sleep. It is the side-effects of these drugs that increase the risk for falls. They are able to increase the swaying of your body from side to side, which can reduce your ability to balance. Drowsiness, unsteadiness, and an increase in postural hypotension (i.e. lightheadedness) when you get up from a lying or sitting position also contribute. As well, headache, dizziness, weakness, confusion, blurred vision, vertigo, and a hangover effect are also possible, which certainly make keeping your balance more difficult. Other drugs with similar potential side-effects can enhance these benzodiazepine side-effects, thereby increasing your risk for falls. If you have a condition like Meniere’s disease, low blood pressure, low iron, or chronic fatigue problems, that already makes you dizzy and unsteady on your feet, and keeping your balance with benzodiazepines can be difficult. Drinking alcohol increases the potential and severity of all the side-effects of these drugs. About one in three people aged 65 and over fall each year, but many more younger people fall annually. No one keeps track of the younger people because they do not break bones as readily, requiring hospitalization or nursing-home admission. But remember, benzodiazepine use can contribute to falls in all age groups, so even if you are younger you may not break a bone, but you will be bruised and injured. With age the risk for broken bones increases because the incidence of osteoporosis increases. For people over 50 years, 80 per cent of all fractures are the result of osteoporosis. Obviously, avoiding falls is key. Clean up clutter that you might trip over. Also tack down slippery mats, ensure your lighting is good, remove ice and snow, wear good footwear, use a cane or walker if they help, and make sure your prescription eye glasses are up to date. Also take benzodiazepines only for the shortest period of time possible. Marie Berry is a lawyer/pharmacist interested in health and education.
Everyone has had a nosebleed at one time, and often the cause is easily identified. However, sometimes a nosebleed may indicate a more serious problem. Next issue, we’ll look at treating nosebleeds, and when to have them checked.
February 3, 2015
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life
Time-saving meals for busy families We asked chef Tony Mancini how he’d cook for today’s hectic farm lifestyles espite all our time-saving technology, we all seem to be busier than ever, cramming ever more things into our days. Farm work, off-farm jobs, kids’ sports, volunteer commitments plus, hopefully, at least a little time for some fun social activities and exercise for ourselves mean it can be a challenge to eat healthily. Don’t despair. By keeping a well-stocked pantry and freezer, and with a little planning, Montreal chef and cooking instructor Tony Mancini says we can put healthy dinners on the table night after night. Mancini offers basic recipes for soup and a meat base that can be changed up in many ways to help us save time while avoiding the monotony of eating the same meals night after night. He also provides suggestions on what essential equipment and basic supplies you should keep on hand to make whipping up dinner a snap.
By Helen Lammers-Helps
You need In the Pantry Chicken and beef broth Canned tuna in olive oil • Canned beans such as cannellini (white kidney beans) and chick peas • Panko bread crumbs • Pasta like penne and rigatoni (a lot easier to serve than spaghetti) • Good quality olive oil (I do not compromise on the olive oil — I prefer the Spanish ones) • Canned artichoke hearts • Ready-made polenta (sold in the shape of a salami, it is a great time saver and could be sliced, brushed with olive oil, covered with grated parmesan cheese and grilled under the broiler for a quick appetizer) • Passata (strained tomato sauce) or good-quality canned tomatoes • A variety of salts (A great way to change up flavours is to have different flavoured salts such as hickory smoked, Himalayan and fleur de sel.) • •
In the Freezer Provided you have a chest freezer, stock up on frozen vegetables like spinach which are great in soups. Specially marked vegetables designated for pasta sauces, stews, and soups can save hours of prep and shopping time if you keep a few packages on hand in the freezer.
•
Tips for Planning Healthy Meals Have a meal plan based on store sales and your preferences. This way you will avoid buying on impulse and most likely save money. Buy fresh as much as possible but frozen fruits and veggies can be lifesavers and are sometimes cheaper. Nutritionally, they may be better for you. Roasting vegetables reduces the amount of fat used and adds a sweet caramelization to them while preserving nutrients that otherwise would be leached out into the cooking water. Roasted beets are an amazing taste sensation. Buy packaged slaws, add chopped apples and season with cider vinegar and mayonnaise.
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In the Kitchen An immersion blender (safer than a regular blender and a lot quicker to clean) • A food processor for grinding or puréeing foods other than liquid ones • A stainless steel chef’s knife and a paring knife • Kitchen scissors (ones from the Dollar Store are actually fine) • An instant-read thermometer • Good-quality non-stick pan set (Good quality ones are usually associated with a well-known chef. Stay away from just stainless steel ones.) •
February 3, 2015
life Tony Mancini’s
MEAT Sauce BASE RECIPE
This is a very versatile recipe with many variations. You can buy bulk pork sausage (sausage without the casings) that you like, sweet or spicy, or have your butcher suggest some. The flavour of this base is dependent on the quality of the sausage used. You can omit the turkey or chicken if you wish, but I use them to balance the flavours. Once you have made it you can make more variations depending on your inspiration. You can add frozen vegetables, already cut up, to add more nutrition and to save prep time. Yield: 8 cups
Ingredients
Tony Mancini’s
POTATO LEEK SOUP BASE RECIPE
This is a simple rustic soup. Add salt and pepper according to your own tastes.
Ingredients 4 cups (1,000 ml) sliced, cleaned leeks (you can use some of the green part of the leeks) 4 cups (1,000 ml) diced potatoes 8 cups (2 l) commercial chicken broth 2 tablespoons (30 ml) butter Serves 8.
Directions Melt butter in a large sauce pan. Sauté leeks until translucent. (Optional — You can deglaze with 1/2 cup (125 ml) dry white wine.) Add chicken broth and potatoes. Simmer for 20-30 minutes or until potatoes are tender. Note: The leeks can be purchased already cut and you can leave the potato skins on to save time.
Variations Omit butter and render 8 oz. (200 g) of bulk pork sausage with the wine and fry leeks in rendered fat. Continue with recipe. You can purée the soup and serve with chopped crisp bacon as garnish. You can reduce the chicken broth by a cup and add a cup (250 ml) of 15 per cent cream after you have puréed the soup. Serve hot or cold. (Cold is called a vichyssoise; serve with chopped chives as a garnish.) You can add a bunch of chopped watercress or spinach in the last five minutes of cooking, then purée. This soup also lends itself well to the addition of any leftover vegetables you may have in the fridge. (Note: My personal favourite is to use bulk pork Italian spicy sausage, fried with the leeks, and add a can of cannellini beans, cooked for 3 minutes.Then add the broth and the potatoes. Add frozen chopped spinach during the last five minutes.)
February 3, 2015
1 lb. (0.5 kg) each of lean ground beef (chuck steak), bulk pork sausage (sweet or spicy) and mixed ground turkey or chicken 2 large onions, chopped 1 large green bell pepper, chopped 1 tsp. (5 ml) minced garlic 1 28-ounce (796 ml) can of good-quality diced or whole tomatoes 1 tsp. (5 ml) salt ½ tsp. (2 ml) pepper Fresh oregano and basil
Directions Cook the pork in a large Dutch oven over medium-high heat with a little water and cover (this will render the fat). Once the fat is rendered, uncover and add the onions, peppers and garlic. Then add the rest of the meats. Stir and cook until crumbled and no longer pink. Drain fat. Stir in tomatoes, salt and pepper. Cover and simmer, stirring occasionally for about 15 minutes. Cool 10 minutes. Spoon about 4 cups (1,000 ml) of mixture into two heavy-duty zip top plastic bags, flatten, and freeze until ready to use.
Uses Spaghetti with Meat Sauce: Heat one package (4 cups or 1,000 ml) meat base, thawed, in a Dutch oven over medium heat. Stir in 1 14-1/2 ounce (540 ml) can whole tomatoes or passata (tomatoes sold in a glass jar already puréed and sieved to remove seeds and lumps) with oregano and fresh basil. Cover, reduce heat and simmer for 20 minutes. Cook pasta al dente and place in a sauce pan. Drizzle with olive oil and some of the cooking water. Cover with meat sauce and toss. Simmer for a minute. Makes 6 servings. Sloppy Joes: Heat 1 package (4 cups or 1,000 ml) meat base, thawed, in a Dutch oven over medium heat. Stir in 2 teaspoons (10 ml) chili powder and 1 teaspoon (5 ml) brown sugar. Cover and simmer, stirring occasionally, 15 to 20 minutes. Serve on hamburger buns or on baked potatoes. Makes 6 servings. Easy Beef and Macaroni Casserole: Heat 1 package (4 cups or 1,000 ml) meat base, thawed, in a Dutch oven over medium heat. Stir in 1 14-1/2 ounce (540 ml) can diced tomatoes, 2 teaspoons (10 ml) chili powder, 2 teaspoons (10 ml) paprika and 1 bay leaf. Cover, reduce heat and simmer 15 minutes. Discard bay leaf. Stir in 4 cups (1,000 ml) hot cooked elbow macaroni. Cover with grated cheese. Bake in preheated oven at 350° F for 10 more minutes. Makes 6 servings. Chili Con Carne: Heat 1 package (4 cups or 1,000 ml) meat base, thawed, in a Dutch oven over medium heat. Add one 28-oz. (796 ml) can rinsed red kidney beans with one teaspoon (5 ml) ground cumin, 2 teaspoons (10 ml) chili powder and one 28-oz. (796 ml) can of tomatoes or a jar of passata. Simmer for 15 minutes. One teaspoon (5 ml) smoked paprika would also add a nice earthy taste. CG
country-guide.ca 63
acres
By Leeann Minogue
Slipping into the dealership It’s business — big business — but they’re off to a bumpy start amn idiot ought to get a ticket. Driving like that,” Dale shouted, hitting the brakes. The truck slid a little on the slippery highway, but Dale held the wheel and slowed to 80 without coming too close to the back of the green Chevy Malibu in front of them. Dale waited impatiently for his chance to pass, craning his head to the left, then watching two matching semis come by, one right behind the other. “Look at those guys. Travelling in packs so nobody can get around.” Then Dale saw his chance to pass and took it, glaring into the window of the Malibu as he sped by. “Look at that guy. They should take away his license,” Dale said. Dale’s son Jeff looked over from his seat on the passenger side of Dale’s truck. Jeff thought the other driver looked a lot like his father, but he wasn’t going to say that. Especially not today. “It’s not that icy. Drivers who slow down the whole highway are way more dangerous than a little ice.” Dale kept ranting as he pulled back into the righthand lane. “I can’t believe the gearbox on that damn grainleg packed up like that. Just when we were almost to the bottom of that bin-full of soybeans. If we don’t get those beans through the cleaning plant before the weather turns cold again, we’re not going to get them cleaned until it warms up in the spring.” Jeff let his father go on. “Stupid soybeans. Why are we growing a crop too delicate to be handled in the cold?” “Two trips to town in one day,” Dale kept talking. “No wonder we can’t get anything done. We spend all day driving up and down the highway.” Jeff took a deep breath. Now Dale was ranting about something a little closer to what was actually bothering him. A few hours earlier, Dale had called Jeff out to the cleaning plant. “The grainleg gearbox is packed up tighter than… I don’t even know what. I could use a lit64 country-guide.ca
tle help getting it down. We’ll have to take it in to town to the machine shop so we can get back in business.” Jeff and Dale struggled until they finally had the gearbox loaded into the back of Dale’s truck. “Guess we were headed to town this morning anyway,” Dale said. “You ready to deal with Greg on that new combine? Got the chequebook out?” “I need to talk to you about that, Dad,” Jeff said. “I called Greg at the dealership and changed our meeting to this afternoon.” “Why?” “Elaine wants to come,” Jeff said. “And she’s tied up taking Connor to playschool this morning.” Jeff paused. “I hope that’s OK.” “It’s your meeting, son. Have it when you like. But it’s a shame for us to make two trips. Especially when Elaine’s already in town this morning. But if she wants to ride in with us, there’s room in the truck.” “Dad,” Jeff started slowly. “Elaine doesn’t want a ride to the Co-op. She wants to come along when we make the deal with Greg.” “What?” Dale said. “She wants to be there when we make the deal.” “Why?” Dale asked. “She’s been keeping the books. Working on financial plans. She wants to be more involved with the business.” “Your mother never tried to do that. And she kept the books for decades.” “You know Elaine,” Jeff said. “And it kind of makes sense. This is the biggest deal we’ll make all year.” “Sure, it’s a big deal. But what’s the use of having an extra person in the room for it? What’s she going to say? Is she going to try to stop you from closing the deal?” “Well…” Jeff started. “She’s never bought anything more expensive than a new winter coat. What if she opens her mouth at the wrong time and we end up paying more than we have to?” february 3, 2015
“I don’t see…” Jeff started. “And where’s she going to sit? You know Greg’s office. There’s only two chairs on our side of the desk.” “With the price of new machinery, I think Greg could bring in a third chair,” Jeff said. “We’ll see,” Dale said. “I’m going to change my clothes so I can get that gearbox into the shop as soon as possible.” “I’ll change too, and come along,” Jeff said. “You sure you can do that without your wife?” Dale muttered, heading toward his house. They hadn’t spoken much since that, unless Dale’s angry monologues counted as conversation. “Geez,” Dale kept complaining while he drove, slamming the brakes hard to avoid hitting the grey Ford Explorer in front of them that was going well below the speed limit. “You’d think these people were driving through the blizzard of ’73, the way they’re creeping along. Just because there’s a little frost coming out of the road.” But there was more ice than Dale realized. Even with his foot hard on the pedal and the anti-lock brakes pumping, they weren’t going to be able to stop in time. Jeff braced himself with both hands on the dashboard, and Dale kept his hands tight on the wheel while the truck spun 90 degrees clockwise and shot into the ditch. There was just enough snow in there that they weren’t going to be able to drive it out. Dale and Jeff looked down at themselves to make sure they weren’t hurt. They watched the Ford Explorer inch on westward down the icy road, with no indication that the driver even knew she’d almost been in a serious accident. “You OK?” Dale asked, trying to catch his breath. “Think so. You?” “Geez,” Dale said. “That could’ve killed us both.” “Got kind of lucky,” Jeff said. Then the men saw an SUV coming from the west slow down and pull over carefully onto the far side of the road. Of course it was Elaine, on her way home from Connor’s playschool. “We’d better get across the road in a hurry,” Dale said. “She’ll have Connor and the baby in the back. We don’t want anyone rear-ending her.” A few minutes later they were all in the SUV, heading toward the Hanson farm. “Guess we’re not going to get the cleaning plant running again anytime soon,” Jeff said, from where he was wedged between the two boys’ car seats in the back of the SUV. “We’ll get the truck out of the ditch, then go back in to town,” Dale said. “What time are we supposed to see Greg?” “Two-thirty,” Elaine said. “Huh,” Dale said. “I hear you’re coming along.” “Yes,” she said, slowing down carefully to turn off the highway and onto their grid road. “Thanks for letting me sit in. Don’t worry, I won’t say much. I just want to watch and see how you do it. I want to learn as much as I can about how you do business. In case something happens to Jeff one day.” “Something almost happened just now,” Jeff piped up. “I suppose you might as well learn the ropes, Elaine,” Dale said. “Glad to have you.” Leeann Minogue is the editor of Grainews, a playwright and part of a family grain farm in southeastern Saskatchewan. february 3, 2015
The little girl is the only child in church. She sits quietly beside her aunt through the service. I wonder what she is thinking. After the service I sit with them at the coffee hour. The girl is about six years old, losing her baby teeth and enjoying a Nanaimo Bar. She tells me her grandfather is sick. Her parents took her to Moose Jaw to see him. I mention that I have never been to Moose Jaw, and ask, “What is it like?” She pauses to compose her answer. “There are lots of old people. They all live in trailers.” Although I have never been there, I know Moose Jaw is a well-established prairie city with a population of about 35,000 people of all ages. Should I correct her impression? I resist the temptation. She answered my question from her own experience and her impression is valid. We are frequently confident that our point of view, our experience, is the right one, but is that always the case? Upon reflection we discover the other person’s perspective on the situation, although different from ours, has merit also. It is humbling to admit that someone else has a corner on truth that escapes us, but a dose of humility is good for our humanity. Sybil was a member of the church I served in Richmond, B.C. She was wise and had a realistic view of life. Her favourite expression was, “This too will pass.” She had seen a lot of life on the way to becoming a great-grandmother, and it had not all been easy. Her wisdom came from years of experience, living in England, then the United States and, for many years, Canada. Sybil learned to look beyond the problems of today as she helped her family and friends to cope. When I became upset about some parish problem, she advised me, “This too will pass.” She was right. Whatever it was, it did pass. I cannot remember what the problem was although it loomed large at the time. People are so keyed up these days it is almost impossible to put them to sleep in church. I asked my minister friend how he was ministering to a congregation of apparently stressed people. He admitted maintaining the same strenuous pace as most of his congregation members. I asked, “What do you do to relax?” He said, “This is all I do. Church work all day and most of the night.” He is approaching 60 years of age. How long he can endure the pace he has set for himself? What is the example he is setting for others? Perhaps you’ve heard the story of the man who stood under a streetlight, head down, scratching in the snow with his boot. “What are you looking for?” a passing friend asks. “I’m looking for a few coins I dropped,” says the man. The friend starts scratching the snow in the same pool of light from the streetlight. “I’m looking, but I don’t see any coins,” says the friend. “Are you sure you dropped them here?” “As a matter of fact, I dropped them on the other side of the street,” replies the man, “but the light here is better for looking.” We search for happiness and meaning in places we know will never reward us. The true rewards are “on the other side of the street” but we persist in doing the same things with little benefit. I believe God’s light shines everywhere and happiness is found in the ordinary things of life. Suggested Scripture: Psalm 139, 1 Corinthians 2:6-13 Rod Andrews is a retired Anglican bishop. He lives in Saskatoon. country-guide.ca 65
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