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March 3, 2015 $3.50
Alberta’s TK Ranch makes branded beef pay pg 32
2015
Land Prices Is it time to sell?
+PLUS No, it isn’t fun to discuss, but prenup is worth it CROPS GUIDE Are you sure you know the best day to spray? Publications Mail Agreement Number 40069240
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Contents
march 3, 2015
BUSINESS 8
winning with team canada These farmers are helping sell Canada overseas. Are we finally emerging from the shadow of the CWB?
12 the tastemaker
Toronto writer David Sax knows everything about food trends. He even knows that farmers have almost no say in them.
14 uganda decides: go big or go small
Farmer Morrison Rwakakamba has an inside seat on some of the world’s most pressing food and agriculture challenges.
18 around the globe
Nuffield scholar Becky Parker asks, Why are other countries better than us at attracting young students to ag careers?
22 flatlining
After years of record-breaking growth, the life has gone out of land prices. But, our experts say, don’t call the morgue just yet.
23 is it time to sell?
If your goals are short term, now may be your best window to sell land. But if long term, the outlook is bright for owners.
26 I do, and I don’t?
With farm values rising, it’s time to wrestle with prenups, or as lawyer John Mill calls them, Family Farm Legacy Agreements.
29 finance metrics you may not have thought of — diagnosing operating inefficiency
AME experts share how to use your financial statements for a better, more actionable analysis of your business.
31 better family meetings
Sunday dinner doesn’t cut it. The evidence is clear that top farms have adopted structured meetings. Here’s how they do it.
36 will value adding work for you?
Helen Lammers-Helps begins her four-part series on value adding with the most important question of all. Does it suit who you are?
38 Guide HR — are you in shape?
Physical exercise isn’t just good for your health. It’s good for your farm.
PG. 32 The Direct option Dylan and Colleen Biggs were warned they would fail when they opted for direct market to save the family’s Alberta beef ranch. Now, direct marketing is fuelling the ranch’s expansion.
39 the class of ag learning
These farms host public tours, and are proud that they do.
50
g uide life — better farm ambassadors
If you want to talk to consumers, be prepared to listen first.
EVERY ISSUE 6 MACHINERY GUIDE
Forage machinery sees major wave of technology advances.
52 GUIDE HEALTH
Are we at risk from tuberculosis? Marie Berry sets us straight.
54 HANSON ACRES That’s odd. Why won’t Ed pick up his phone?
CROPS GUIDE 42 drift versus volatility
Think twice before spraying on those ideal spring mornings. A bit of consistent breeze is a much better choice.
46 new research: how your crop gets a sneak peek
Your corn and soybeans “read” the light that penetrates the soil surface, according to these new studies by Clarence Swanton.
48 PEST PATROL
It’s true, says Mike Cowbrough. Many tough-to-manage weeds are better controlled when you spray in the middle of the day.
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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: Maggie Van Camp Fax (905) 986-9991 (905) 986-5342 Email: mvancamp@fbcpublishing.com Gord Gilmour (204) 453-7624 Cell: (204) 294-9195 Fax (204) 942-8463 Email: gord.gilmour@fbcpublishing.com Production Editor: Ralph Pearce (226) 448-4351 Email: ralph.pearce@fbcpublishing.com ADVERTISING SALES Lillie Ann Morris (905) 838-2826 Email: lamorris@xplornet.com Kevin Yaworsky (250) 869-5326 Email: kyaworsky@farmmedia.com
Tom Button is editor of Country Guide magazine
Test the next generation I can’t help thinking we’d all be better off if some of those exuberant FCC T-shirts that shout “100% Farm Boy” or “Future Farmer” would curb their enthusiam just a notch. Yes, it’s a great time in agriculture, all things considered, and yes, agriculture is a great place to be, but we should think twice before we allow ourselves to forget all the wisdom that was learned at such high cost during the 25 years that led up to 2008’s reversal of agriculture’s outlook and the optimism of our youth. In particular, with a new crop of college and university grads heading home to the farm, we should think back to the advice that was almost universally accepted only a few years ago. That advice was for the next generation to work off the farm for a minimium of three or four years (or, more likely, five to seven years) before returning to the farm. We may be tempted to look back at that advice, thinking it was only meant to ensure that the son or daughter really did want to farm, but there was much more to it than that. Off-farm employment meant the next generation had to prove themselves, because there was an expectation that was sometimes articulated, sometimes not. That was that the next generation wouldn’t just prove they could hold on to a non-farm job, they would have to prove that they could excel at it. They would 4 country-guide.ca
have to show that they were promotable, that they were valued by their colleagues, and that they could manage their own households and their own careers. It was an encouraging sign too if they started showing that they respected and wanted to learn from their bosses for their knowledge and for their management skills. At home, they would then have to demonstrate that by putting their workplace experience in play, they could bring strength and value to the farm. Nor should we be too dismissive of the value of their time in the city for giving them a better chance to judge whether they really want to come back to the farm. Success comes in many shapes. Do I predict a gloomy future for young farmers today who don’t get off-farm experience? Maybe, for some of them. Much more important, though, is to consider whether the bulk of today’s young farmers, good as they are, would be even better if they had to prove themselves in an unfamiliar world, where they could learn lessons that will stand them in good stead all their lives. Look around you now at the 40-somethings who emerged 15 or 20 years ago when this philosophy was so widely adopted. I am continually impressed with their competence and their dedication. I expect you are too. 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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ISSN 1915-8491 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.
march 3, 2015
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Machinery
By Ralph Pearce, CG Production Editor
Don’t stop with the models we’ve highlighted from the five manufacturers below. We’re bringing you news on some of the most innovative and efficient models, but forage equipment as a sector is experiencing a major technology boom. Most manufacturers have unveiled multiple new designs in the past 12 months, particularly Deere, New Holland and Vermeer. It certainly shows that forage crops aren’t being overlooked or undervalued in Canadian agriculture. But it also means you need to be prepared to do your homework. It will pay.
Krone — EasyCut F 360 CR Glide A new model disc mower-conditioner with improved cutting and conditioning, plus easy-to-use applications is what producers will find in the EasyCut F 360 CR Glide front-mount disc mower from Krone. The unit comes with a working width of nearly 12 feet and a conditioner that’s driven by top and bottom rollers, creating full-width conditioning. The EasyCut F 360 CR also features the SmartCut cutterbar designed to produce a quality cut, even in a light crop. The design allows for an increased blade overlap by the strategic placement of the discs on the cutterbar, combined with the direction of the rotation. QuickChange blades and SafeCut hubs also provide speed plus safety when changes need to be made. The “Glide” part in its name signifies the pull-type flotation system, with large springs and parallel linkage, allowing the mower a smoother ride over rough or uneven ground.
www.krone-northamerica.com
New Holland — Roll-Belt 560 The New Holland Roll-Belt 560 baler boasts eight different features that the company believes are worth a close look. These include the twine wrap system, a relocated back wrap roll, a choice of monitors and tires, belt and pickup choices, a simplified net wrapper and New Holland’s exclusive Bale-Slice system. With this unique feature, bales are denser and easier to feed. Knives enter the bale after the core is made, retaining a solid core with the option of how much of the bale is cut to the outside face. The three different pickup configurations run from a five-bar ActiveSweep system to the standard-duty four-bar ActiveSweep and a 60-inch six-bar Supersweep pickup. There are also three belt choices which include the premium laced belts, made with constant heat and pressure to eliminate belt flaws and enhance tensile strength.
www.newholland.na
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Vermeer 600N Series Baler It turns out 2014 was a busy year for Vermeer too, with a number of launches and introductions in forage equipment, including the 600N Series round balers for hay, forage and even cornstalk baling. There are many similarities to the Super M balers that are popular —like the five-bar pickups and Direct Crop Feed System — but there are plenty of new features too that mark this design for durability and high performance. Among them are an optional pickup clutch that actually stops the pickup when the desired bale size is reached. That lessens the chance of inadvertent overfill of the chamber and helps protect the rollers, belts and bearings. Adjusting the pickup height is also made easier by a tool-less gauge wheel adjustment function. Bale weights and moisture readings are also streamlined by the new E-Link Pro display unit that’s coupled with an optional scale kit and moisture sensors.
www2.vermeer.com
Claas — Jaguar 900 Series As if the introduction of the all-new 800 Series Jaguar forage harvester wasn’t enough for 2014, Claas engineers decided to redesign the Jaguar 900 Series before the end of the year. Rolled out in August, the 980 model comes with power to spare, including a MAN V12 engine at 884 horsepower. At 775 horsepower, the 970 boasts a MAN V8 with the remaining four models (960 to 930) running on Mercedes-Benz in-line 6 engines. The hallmark of the previous 900 series was the infinitely variable chop length, and that’s been carried forward into this redesign. And not only is it standard, Claas has added an intake cylinder for continuous pre-compression for improved chop quality. The 900 series also offers a tighter turning radius (as little as 41 feet, depending on the tires), plus Trimble GPS guidance and mapping capabilities that are easy to add.
www.claasofamerica.com
John Deere — 8000 Series SPFH Until now, forage producers might have had to choose between durability and technical sophistication capable of performing crop analysis (with corn silage). Now John Deere says it is bringing the two together in the 8000 Series self-propelled forage harvester. The combination of the DuraDrum cutterheads and KernelStar technology means improved efficiency plus precision analysis, all designed to save time and expense during harvest. With the 8000 series, engine horsepower is matched to two cutterhead widths, enabling the operator to adapt the capacity to conditions in the field. According to the company, the new header solutions and crop-flow layouts also increase flexibility in different crops and improve performance in wet or dry conditions. The 8000 also brings enhancements for the operator too, including improved visibility and longer service cycles.
www.JohnDeere.com
March 3, 2015
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business
Winning with Team Canada Applying the lessons learned by farmers on overseas trade missions is the shrewdest marketing move you can make this year By Gerald Pilger ast issue I disputed the marketing ability of most Canadian grain producers. I argued that what most farmers, advisers, and the agriculture industry overall calls marketing is simply price taking, so it is not true marketing. That is not to say, though, that there aren’t farmers who are true marketers. Here are the thoughts of four farmers who have actually participated in marketing Canadian wheat. Each of these farmers was a member of a Team Canada mission. The Team Canada approach to marketing wheat is a joint undertaking of the Canadian Grain Commission, the Canadian International Grains Institute, and Cereals Canada. It was instituted to fill the void that occurred when the Canadian Wheat Board lost its monopoly of its role as the primary marketing agency of Prairie wheat. Each mission had representatives of the CGC who would describe the varieties, grades, and qual-
ity of wheat grown and in storage in Western Canada. Cigi representatives would provide technical details on using that wheat in milling and baking. And an actual wheat grower travelled with each mission to provide the millers and bakers with information on the farming practices used in Western Canada to grow wheat. That wheat grower would answer buyer questions, including questions on the environmental friendliness and sustainability of Canadian farming practices. Most importantly, that grower received feedback directly from the buyers of Canadian wheat, and was able to hear first hand what wheat buyers like, dislike, and desire in Canadian wheat. An actual producer is the best person to evaluate this key market intelligence and disseminate it back to Prairie wheat growers. The information these farmers are bringing back is invaluable. Applying the information learned by these farmers to your own operation is likely the most important marketing move you will adopt this year.
“We have to make these trips to stay in the business,� says Kevin Bender, seen here (third from right) with Europe delegation.
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march 3, 2015
business
Kevin Bender
Greg Porozni
Key Learning
Key Learning
Consider the buyer’s needs when selecting a wheat variety to grow Kevin Bender farms in west-central Alberta. He was part of the Team Canada mission to Italy, Germany and England. Bender says: “The purpose of the mission was to promote Canadian HRS and durum wheat. It was also for relationship building with European buyers. “I was more convinced as time went on of the value of the trip. It is a necessity to do this. Americans spend several times more than we do on selling their wheat. We have to make these trips to stay in the market.” Bender notes that these trips also provide Canadian producers and exporters the opportunity to hear any concerns the buyers may have about Canadian wheat. And he heard first hand of three concerns European buyers have about Canadian wheat shipments they have accepted over the past few years. Buyers spoke of trace levels of soy in wheat. Bender noted the levels are very low, i.e. five to 20 ppm. Bender believes the buyers are concerned because soy could be seen as an allergen. Buyers were also concerned with the potential for mycotoxins and fusarium in shipments. But buyers’ biggest concern was the declining gluten strength of Canadian wheat. Italian buyers report an erosion over the past five years. Bender notes that gluten strength is partially related to growing conditions. Gluten strength also varies by variety. Harvest, Lillian, and Unity are varieties favoured by farmers because of their agronomic performance. However, they are not the varieties of choice for bakers because of their lower gluten strength. On a positive note, Bender reports gluten strength was better this year. And he encourages growers to select high-gluten-strength varieties for planting in 2015. Finally, Bender felt buyers really appreciated the presence of a farmer at the meetings. “They liked to see and hear about the origins of the wheat they were buying.” He also felt they liked that he would be taking their concerns back to Canadian growers. Bender feels strongly that all sectors of the grains industry have to work together if we are to successfully sell our wheat in the world market.
Quality is critical Greg Porozni, a farmer from east-central Alberta spoke to buyers in Morocco, Algeria, Tunis and Dubai. “The purpose of the mission to these countries was to sell Canadian wheat, to increase our market share, and to ensure buyers in these countries are satisfied with our wheat. The Team Canada approach lets the buyers meet with every sector of the value chain,” explains Porozni. Porozni found buyers were really happy that a producer was along on the mission. He said they were very interested to learn about direct seeding, the care Prairie farmers take with inputs, and how farmers are practising due diligence and sustainable farming practices. Equally important though was the work being done on farmers’ behalf by groups like Cereals Canada, the CGC and Cigi. To illustrate this point Porozni noted how weather downgraded a lot of durum this year. However, Cigi was able to provide the technical testing to show that processors could blend as much as 70 to 80 per cent of No. 3 Canadian durum with No. 1 Canadian durum without impacting the colour or quality of the end product. “We need to promote Canadian wheat,” says Porozni. “The CWB did a great job of building relationships and trust with buyers. We have to continue and build on those relationships. If we do not do it someone else will. The U.S. and Australia are already doing it. “Quality is different every year so it is so important to have an organization like Cigi,” believes Porozni. “North African countries buy Canadian durum because of our quality. We can never lose quality because if we do, we lose markets.” Continued on page 10
“ I was more convinced as time went on of the value of the trip,” Bender says. “It is a necessity to do this.” Greg Porozni (second from right) with ambassador Sandra McCardell and Canadian delegation in Morocco, delivering Canada’s quality message. march 3, 2015
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business
Branding starts with the farmer As I was putting this article together I received an email from WineAlign, a web service providing information about wines to consumers. An article by Canada’s first Master Sommelier, John Szabo, entitled “Chile into the Future” caught my attention. With Szabo’s permission the following two paragraphs from that article are reprinted here: “… But perhaps most importantly, the new Chile has meant dissolving the walls between growers, makers and marketers. In 2006, winery visits began in a boardroom, with the export manager delivering a corporate PowerPoint presentation before the winemaker took over to present wines. Vineyards were never visited and vineyard managers never seen. “In 2014, every visit began in a pit — a soil pit dug in the vineyards, with the winemaker and vineyard manager (and even the occasional export manager) enthusiastically digging away to show the different soil structure of their various subparcels, which were then related to experimental wine lots back in the winery…” The lessons that the wine industry has learned about the importance of branding, of connecting the entire value chain, of producing high-quality products, and of building on the uniqueness of the product — right down to the soil the grapes are grown in — is what we in the grain industry must learn from. We can pat ourselves on the back all we want about a high yield or a price we received which was greater than what a neighbour got, but in the end it all comes down to meeting the needs of our customer. We need to support the Team Canada approach and learn from the farmers who are representing us on these sales trips!
Randy Johner
Above, Randy Johner meets millers in Bangkok. “Our competitors are already doing this.”
Key Learning
Information and relationships are vital Randy Johner of southern Saskatchewan made stops in Singapore, Malaysia, Vietnam, Thailand, and the Philippines with Team Canada. “Our job was to tell our customers what our crops were like” says Johner. “The customer needs to know this. Our competitors, the United States, and Australia, are already doing this. We need to do it better.” Johner believes when the CWB was the marketing agency for Canadian wheat, the CWB had the quantity, quality and technical information at their fingertips and could provide the information that buyers wanted. But he feels this changed with the privatization of the CWB, and that private traders likely do not have the information the CWB had. Johner found the Team Canada meetings are so important to buyers that there would be 50 to 70 people at a meeting to hear about the Canadian crop. Johner notes these people are buying huge amounts of our wheat, i.e. 50,000-tonne shipments, so it is critical that we present the information they are looking for. That is why it is so important that farmers support agencies like Cigi. Unfortunately, Johner says surveys show only about one-third of farmers know what Cigi does and how it benefits farmers. Johner says all farmers need to hear about the value of Cigi. According to Johner, he received a very warm reception at all meetings he
In Ho Chi Minh City, Vietnam, Johner heard Canada’s wheat is valued, but we need to do more to communicate it. spoke at. “I told the buyers of the four generations who have worked our family farm. I reassured the audience that farmers in Canada produce clean, safe food. I told them how our long cold winters minimized disease and insect problems and enable us to store grain without spoilage. “What really stood out for me was these buyers were people like me,” Johner says. “They were warm and friendly, and really wanted to know about our farms in Canada. They were very accommodating.” Johner believes we must have good communication all the way up the value chain, from seed growers to growers, to exporter, to trader, to buyer.
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business
Lynn Jacobson
“ You cannot sell wheat with just a phone call,” Jacobson says. “Skype is not a face-to-face meeting.”
Key Learning
It’s all about the brand Lynn Jacobson, a farmer from southeastern Alberta travelled to China, Korea, and Japan. He was representing Canadian farmers in what may be our most important markets. His findings were both a good and bad story. “Over the last few years, no one had been branding Canadian wheat. Canadians had not been making visits to millers and they were not happy about this. You cannot sell wheat with just a phone call, and Skype is not a face-to-face meeting. You have to develop a relationship with your buyers.” Jacobson pointed out U.S. Wheat Associates, the Australians and the Russians are meeting with Asian buyers regularly, and we have to go there too if we are to compete in those markets.” Jacobson reports Asian buyers are also concerned with declining quality of Canadian wheat. “Millers are now complaining about the quality of Canadian wheat. The only advantage Canada has is our wheat’s quality. If we ever go away from
quality, we will lose markets. If we don’t have quality, even the U.S. market will disappear. We will become a residual seller of wheat if we do not supply what the customer wants.” As an example, Jacobson notes that buyers have been concerned about the gluten strength of our wheat for the last few years. He says gluten strength varies between varieties, and that some of the most popular varieties we grow have low gluten strength. Yet we continue to grow these varieties because of their agronomics and high yields. On the positive side, the buyers he visited with were very happy with the new Team Canada approach and they were happy that Canada is back in the business of actively marketing wheat. He found they liked a farmer to receive their feedback. They hope the Team Canada approach will deliver their feedback back to growers in Canada. Jacobson learned first hand that what wheat buyers and the world wants from Canadian growers is top-quality wheat. “We are the best source of high-quality wheat, but the Australians are catching up and Kazakhstan can grow high-quality wheat; it is their lack of infrastructure that is hindering their sales. If we ever go away from quality, we will lose our markets.” CG
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business
The tastemaker When consumers think food, they don’t think farmer By Helen Lammers-Helps Sometimes the difference between how farmers and consumers think about food is most glaring when someone tries to cross the divide. Interviewer Helen Lammers-Helps wanted to put the question into the hands of David Sax, a Toronto-based business writer who is becoming a lead voice on food and on who decides what we eat. Sax recently published Tastemakers, and in addition to other books, he also writes regularly for publications including N e w Y o r k T i m e s and B l o o m b e r g Business Week.
CG: What are the drivers that produce a food trend? What role do farmers and agricultural scientists play in these trends, if any? David Sax: There are several forces that drive food trends. First of all, there are health and wellness drivers that are the result of research studies. For example, for almost three decades we were told not to eat saturated fat, but that fear has now been proven wrong. We’re all going to be eating butter again. Social and cultural forces also affect our food tastes. For example, where are people travelling to and where are immigrants coming from? Those foods and flavours will influence what we eat. Finally, economics will impact our food choices. When times are good, people are more open to trying new flavours and ideas. Conversely, when the economy is bad, we tend to stick to known foods, comfort foods. That’s when we’ll see Mac & Cheese coming back, it’s almost like an edible security blanket.
CG: I didn’t really hear farmers in that list. What role does media play? Sax: The media is the mouthpiece for these trends. Media includes not just newspapers but also food blogs, The Food Network, Yelp, Twitter, and Instagram. These media inform what it is we reach for in the grocery store or point at on the menu. Farmers and agriculture are very much tied into the world of food and the world of food trends but
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usually in a way that is a lot less obvious than chefs. Before kale became a superfood, there were farmers in California who were growing many varieties of kale who were trying to get it into restaurants, who were creating a market for it. I’ve written about a farm family (Irma and Marius Botden) in Thornbury, Ont. who came from the Netherlands and saw that the Ontario apple market was saturated with low-price apples and not a lot of variety. In the Netherlands there were many more types of apples, boutique apples. So they developed the Red Prince apple. They invested a lot of time and money to develop the apple and the market for it. They have established that there is a market for a greater variety of apples here in Ontario — sales of interesting apples are growing. Inevitably, all food trends feedback to the farm. Agriculture plays a crucial role.
CG: What are some examples of emerging food trends? Sax: I was just at a food trade show in California. Single-origin honey and single-crop honey is gaining popularity. In the past, honey was essentially a commodity, but with all of the attention on bees and with concerns about colony collapse disorder people are becoming more aware. It’s copying the wine world — I had coriander and jalapeno honey because those are the crops the bees were pollinating. We’re going to have honey sommeliers. Sometimes things are cyclical. I saw a lot of products around granola. Not granola bars but classic granola. We see this often where a food will become trendier and trendier, and it will be added to all kinds of different products and then it almost loses sight of what it started as until someone decides to do a reset.
March 3, 2015
business
CG: What causes a food trend to die? Is it oversaturation? Sax: There is an element of that. Take the balsamic vinegar and olive oil trend of the ’80s and ’90s. It’s no longer what it was. Sometimes things like that get so big it becomes the de facto. Olive oil is now the de facto oil that you use for salad dressing and cooking. In the same way that Starbucks and the specialty coffee trend have permanently changed the way we drink coffee. People aren’t talking about cappuccino anymore but coffee everywhere is better now with more options than when the trend began. Sometimes a trend may seem dead but it’s not.
CG: Is sustainability a flash in the pan? Sax: I don’t think sustainability is a passing fad. It’s not a new trend. The organic agriculture movement began 70 years ago in the United Kingdom and the local food trend dates back 40 years, maybe longer, in California. These are not new things but they are finally entering main street consciousness. They will only grow bigger (barring some kind of catastrophic recession or depression). The mass market is more aware of this. This is why Walmart has organic food now and why chains like Chipotle’s are sourcing local meat. This is not going to suddenly disappear overnight. Farmers who can figure out how to do this economically will reap the rewards because they will be able to add value and differentiate their products.
CG: It seems that more food trends are coming from “heritage” foods and “heirloom” crops lately. Is this something you think will continue?
It’s good news for farmers, says Sax. Our Helen Lammers-Helps isn’t quite so convinced
Sax: Yes, I do. This is part of the search for variety, diversity and quality in what we’re eating. We are continuously searching for new and better food and a fun experience. Growing heirloom varieties is one way smaller growers can differentiate themselves. People will pay a premium for something different and unique. It’s all about the taste.
CG: How big is the role of media, such as recipe websites, health magazines, TV talk shows, newspaper coverage, etc. in producing and fuelling food trends?
CG: How might demographic trends such as an aging population and high immigration rates be affecting food trends and markets?
CG: What is the best way for farmers to increase the market for foods they are producing?
Sax: We have a great appetite for more variety and as we’re exposed to a range of cultures, different from the Western European ones that established Canada, there will be demand for these foods. There are one million Chinese-speaking Canadians. Lots of other people enjoy this cuisine too. Chinese food is the most successful ethnic food in the world. We’re moving away from a meat and potatoes food culture, but this is good news for farmers. There are more diverse markets for farmers.
Sax: Be genuine. Try to connect with a small but influential food service or market. Word of mouth gets the word out for a very little bit of effort. Approach a few restaurants to try it out. Go to an upscale farmers’ market. This will go further than any advertising. Get it into the hands of people who will have an influence on people who really care about food. That will create a demand. CG
March 3, 2015
Sax: Media is a reflection of what people want. It reports on these trends and amplifies the message.
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Uganda decides: go big or go small Morrison Rwakakamba is a presidential adviser. He is a farmer too. In this African country, that puts him at the heart of some of our planet’s most vital issues By Stephanie McDonald ike any farmer anywhere, Morrison Rwakakamba feels that farming is in his DNA, yet this 35-year-old finds himself pulled in two directions — home to his farm in the southwest corner of Uganda, but also to the city and to the corridors of power in the capital Kampala where he has been appointed special adviser to the president. But his beliefs know where they are rooted, for Rwakakamba passionately believes that if Africa is going to reach its agricultural potential, it is going to be Uganda’s small-scale farmers, not its big plantations, that help get it there. They may be small scale rather than large, diversified rather than specialized, and low input rather than high, but these farmers can be the foundation of a healthy future, Rwakakamba says, as long as they get the government support they need for improved access to better seeds, information and markets. It is a message that he is intent on getting through not only to President Yoweri Museveni, who appointed him special presidential adviser on research and information in 2013, but also to any international audience he can get to listen.
Farmer as activist From Monday to Friday, Rwakakamba is based in Kampala where he’s always sharply dressed in crisp shirt, pressed slacks and glossy leather shoes. His schedule is packed. The first time he and I tried to schedule our interview for Country Guide, Rwakakamba emailed from World Trade Organization headquarters in Geneva where he had been invited to debate the question, “Agricultural trade and food security — are the benefits sufficiently inclusive?” Later, I suggested perhaps we could find some time on Uganda’s Independence Day, but he tells me he has no time that day. It turns out he’s integral to the national celebrations. On our third try we connect by Skype on a Friday afternoon, although his beeping cellphone is a kind of soundtrack to our conversation. In that interview, Rwakakamba tells of his jour14 country-guide.ca
ney from growing up on a coffee farm 400 km away from the capital city to now having access to the State House and the president. After finishing university, Rwakakamba rose through the ranks of the Uganda National Farmers Federation and, at age 30, he became CEO of the Uganda National Chamber of Commerce and Industry. After working as the country director for an East African civil society organization, he founded the Agency for Transformation, a “think and do tank,” as he calls it, which provides research and policy information on agriculture and the environment. Rwakakamba says he was compelled to create the agency because of his deep roots in the farming community, and because he saw that agriculture policy in Uganda was like a “broken brick.” There were too many policy documents being issued and too many institutions involved in implementing programs. The result was a clash of mandates where nothing moved forward. Now, every policy paper the Agency for Transformation publishes is shared with the president.
The farmer Ironically, his work for farmers has made Rwakakamba an urban, white-collar professional, sitting behind a desk most weekdays. Yet nearly every weekend he returns to his farm, which he now manages with his parents and a brother. The farm is where he says he can relax and breathe properly. It’s also a place he wants his three children to know, so they can be in touch with their roots and the legacy of those who came before them. The family’s 15-acre farm is located in Rukungiri District, closer to the borders of Rwanda and the Democratic Republic of Congo than the nation’s capital. The family grows coffee and bananas and raises cattle and goats, but the emphasis has always been on coffee. “It’s how we got school fees to go to school. The economy of the household and our education really gravitated around the success of the cash crop. That is why coffee has always been part of me,” Rwakakamba says. The coffee is harvested twice a year, in April and November. During the harvest season, eight to 10 March 3, 2015
business people are employed on the farm, while half that number work year round. The beans are husked and then dried in the sun. With no electricity on the farm, “it’s very difficult for us to do value addition and have the entire coffee chain contained at the farm. We move value out of the farm and other actors along the value chain are the ones who make the money,” Rwakakamba says. He cites the example of a cup of coffee, which sells for 10,000 Ugandan shillings in Kampala, or about $4. While the price of coffee constantly fluctuates, in some years the cost of this single cup of coffee is the equivalent of what Rwakakamba makes from selling three kilos of beans to the middleman at his farm gate. “It is absolutely obscene,” Rwakakamba says. The government has promised that Rukungiri will be connected to the national grid by the end of 2015. And when that happens Rwakakamba has big plans. First, he intends to purchase processing machinery — a pulper, hurler and roaster — for his own beans and to offer on a custom basis to neighbours for a fee. The processed coffee should then fetch a premium price. Secondly, Rwakakamba intends to transform his farm into an agro-tourism coffee resort. “Lovers of coffee across the world can come to my farm and be able to stay there, harvest coffee, dry it, roast it, and take it,” he says. A house already on the farm will be converted into a guest house. The family will provide local food, and community members will be employed to guide tourists through the coffee experience, from field to steaming cup.
March 3, 2015
Future is small, efficient farms Rwakakamba recalls an incident that shaped his belief in conservation and organic farming. He purchased fertilizer from a local market that turned out to be counterfeit and ineffective. When he switched to using his cows’ manure on his coffee and banana plants, the transformation was undeniable. He says that his farm is now an ecosystem of components that support each other. “For me, the future of agriculture is about making small farms efficient such that they can produce more, but in an environmentally sustainable way,” Rwakakamba says. “We can use our own organic fertilizers and resources to do that. Efficiency is usually confused to mean you have to bring GMO seeds, you have to bring exotic stuff, which for me is really not the case.” The status quo in Ugandan agriculture was challenged in February 2013 when the governing party’s Biotechnology and Biosafety Bill had first reading in Parliament. If passed, the bill would legalize the use Continued on page 16
Uganda’s population of 37 million, Rwakakamba points out, is forecast to reach 114 million by 2050
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Uganda’s small family farms largely missed out on the Green Revolution. But maybe that’s an advantage.
Continued from page 15 and export of genetically modified seeds, plants and livestock in Uganda. Rwakakamba opposed the bill, but it was in the midst of the debate that the proGMO president, Museveni, appointed anti-GMO advocate Rwakakamba his Special Presidential Adviser, catching many political observers off guard. Two years later, the bill is still pending, deferred to allow members of parliament more time to consult their constituents. Rwakakamba remains firmly against the bill as it’s written. “To increase efficiency we don’t need a kind of seed structure that would make the farmer a slave of the market,” he says. For Rwakakamba, it’s also a branding issue. In the past, Uganda’s farms might not have had any choice but to be low-input farms because farmers couldn’t get access to inputs. But now, they can use that history as a point of differentiation. Only 60 per cent of the country’s arable land is being worked, so there is opportunity to expand, but “we cannot compete in economic terms and market access for GMOs with countries which have done GMOs for a long time, like Canada, the United States, and Australia. Going GMO is actually moving away from the niche, because in Uganda, in many ways our farmers remain de facto conservation and organic farmers.” Rwakakamba points to studies that estimate the untapped organics market for agricultural products in Europe, Japan, the U.S. and Africa exceeds $100 billion. 16 country-guide.ca
Once farmers are introduced to genetic modification, Rwakakamba also cautions, “it becomes a different ball game that requires different kinds of skills, that requires a different kind of land space.” He worries that if Uganda opens its doors to the international seed market, the sustainability of its farmers will be compromised. He stresses that commercialization is not bad, but it needs to be done in a way that also protects food security at the household level. Increasing efficiencies will become the primary focus of agricultural policy moving forward, whether or not the Biotechnology and Biosafety Bill passes. The Ugandan population is expected to reach 114 million by 2050 (in 2013 the population was 37 million with nearly half under the age of 15). The country will have to significantly increase its productivity in order to feed that population. Rwakakamba thinks it’s doable, with an intensification of smallholder farming where value is added on the farm and there is access to markets, better seeds, extension services and information. “Once we achieve that, then we’ll be sure that we first of all feed ourselves but also feed the continent.” As our conversation winds down Rwakakamba tells me he’s closing up the office and heading to his farm for the weekend. For the next couple of days, he says, he’s looking forward to changing out of his city clothes, and getting his hands dirty. As he puts it, he’ll practise what he preaches. CG March 3, 2015
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Around the globe ecky Parker’s passion for agriculture and its future shines through when she talks about her upcoming twoyear research adventure as a Nuffield scholar. But Parker also knows that it’s going to take the best people doing the best work to keep our agriculture at the forefront. In particular, she is focused on one crucial question. “Sustainability in terms of having a workforce is essential to everybody — whether you’re a primary producer, food processor or agribusiness — it’s something that challenges everybody,” Parker says. Passion, curiosity and the ability to gather and share knowledge are what Nuffield scholars have brought to agriculture since the program was launched in 1947 by Lord Nuffield, also known as William Morris, who believed strongly in the benefits of travel and study. Nuffield’s idea was to send qualified people out into the world to bring the best agricultural practices back home to improve the domestic industry in England. And that’s exactly what Parker intends to do. Since 1947, the Nuffield concept has spread across the world so it now has branches in the U.K., Ireland, France, Australia, New Zealand, Zimbabwe, the Netherlands and Canada. The Nuffield organization also has ties to the Eisenhower Fellowship in the U.S. The Canadian program’s mission is to “foster agricultural leadership and personal development through international study.” Scholars are funded to help them do research on special topics over a two-year period, during which they spend at least 10 weeks travelling, six of them consecutively. At the end of the study term, they then present reports on their findings.
18 country-guide.ca
Parker comes by her passion for agriculture honestly. She is a born farm girl, and while she now lives in Prince Edward County where husband Hunter works at Huff Estates Winery, she was raised on a seventh-generation mixed livestock operation in Eden Mills, outside Guelph, Ont. Her proposal, “Collaborative models of agriculture career education,” won her one of the three Canadian scholarships awarded last September, based partly on the idea that while others have worked to get post-secondary youth involved in agriculture, more effort is needed with upper primary and high schoolaged kids. Parker is also project and partnership manager at Ontario Agri-Food Education, and will use her scholarship to study how other countries are helping young students see agriculture as a sector with great career opportunities. Parker will go beyond the formal educational systems, also looking at how industry groups and youth development organizations can contribute to attracting youth to agricultural careers. “There are all these different players who can have a significant role in educating about agriculture careers,” Parker says. “How can we work together more efficiently so we are presenting the right messages to young people in the right medium, and we’re not duplicating each other’s work?” That research and all the flying around and staying in far-off places will cost money, and the Canadian Nuffield Scholarship Association Continued on page 20
Photography: Peggy deWitt Photography
Why are other countries better than Canada at getting their young people excited about careers in agriculture? With support from Glacier FarmMedia, Nuffield scholar Becky Parker is on her By Lois Harris way to find out
march 3, 2015
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Parker sees Canada’s poor track record of attracting youth to agriculture as a threat to our sustainability. She also sees it as fixable. march 3, 2015
country-guide.ca 19
business Continued from page 18 depends completely on membership fees and donations to finance its scholarships. Glacier FarmMedia, which publishes C ountry G uide among other farm periodicals including Grainews, Western Producer and Manitoba Co-operator, provided Parker’s $15,000 scholarship. “Glacier has been very successful with our farm publications, and we look for ways to give back to the agricultural community,” says John Morriss, associate publisher and editorial director. “Nuffield has a high international profile, but there’s been a lot less support for participants in Canada compared to some other countries — we see this as an area where we can help.” Also winning last fall’s scholarships were Greg Donald of Kensington, P.E.I., who will be studying the competitive strategies of other potato-producing regions as well as looking at other approaches to commodity organizations, and Colin Hudon from Rosser, Man., who will be doing research on innovative approaches to farmland ownership. Parker was looking for professional development opportunities when she learned of Nuffield. Getting time off for travelling was not a problem since her study topic dovetails with the goals of the organization. “Before I applied, I talked to my executive director Colleen Smith, and have received nothing but full support,” Parker says. The whirlwind of travel is already underway with a flight to the Champagne region of France. Parker will attend the weeklong Contemporary Scholars Conference with other new Nuffield scholars from around the world. It kicks off everyone’s study period by providing participants with a forum for getting a broader view of agriculture, meeting a global network of farm and agricultural leaders, and developing the kind of leadership skills participants will need both on their travels and when they get back home. From France, Parker flies to the U.K. where she will meet with farm and youth organizations in England and Scotland. Finally she’ll go on to New Zealand and Australia before flying home again in midApril. She’ll travel more — probably in the U.S. and across Canada — in early 2016 before wrapping up her report and presenting her research later in the year. 20 country-guide.ca
Asks Parker: “How can we work together more efficiently so we are presenting the right message to young people?” Parker is also hoping local agriculture and commodity organizations will be receptive to her fundraising efforts to “help support me and allow me to visit more places and engage in more meetings with people while I’m away.” Nuffield scholars are free to pursue their research however they wish. Besides determining all the angles of her topic and scheduling meetings with the right people, Parker is also mapping out where she’s going, figuring out how to get to her destinations, and where to stay once she arrives. Having already completed a master’s degree in education, she understands the intricacies of organizing a big research project. She’s also received a lot of help with both her approach to the project and logistical planning. Karen Daynard, a previous Nuffield scholar and a public relations business owner from Ontario, was generous with advice on both her area of study and the application process. Daynard also referred Parker to Clayton Robins, a 2013 scholar from Manitoba who is the executive director of that province’s 4-H organization. When the two of them met at the Nuffield annual general meeting last fall in Montreal, Robins was able to give Parker good contacts in England and Australia, and supported her including youth development groups in her research. At the same meeting, a participant from England offered her a place to stay.
Contacts made during the program can last for years, and members have access to a database of information on some 1,600 people who have gone through the scholarship program so far. “It’s a vibrant network of people who can direct you to whom you should talk to and improve the depth of your research,” says Parker. “This way, you can make sure you’re not missing any angles because of your unfamiliarity with the country.” In the coming months, Parker will be busy. Besides travelling, working on her research and keeping up her day job, she’ll be contributing at least weekly to her new blog, www.LessonsoftheLand.com, and tweeting about her experiences. Her Twitter handle is @becky_parker_2 For Parker, the Nuffield experience will mean translating passion to practicality by finding and reporting on agricultural career education models that can be useful to Canada. “I will be connecting with program staff, so I can have a conversation with them about details and logistics of programs,” Parker says. “As a project manager, that’s how I think. “I’m really committed to devoting whatever is necessary to coming up with tangible ideas that can be put into place — I don’t want it to be a report that sits on a shelf somewhere.” CG Country Guide will continue profiling Parker’s progress as she continues her Nuffield research. march 3, 2015
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Flatlining It may seem like the life has gone out of land markets, By Gord Gilmour, CG Associate Editor but don’t call the morgue just yet
f you get most farmers and landowners to talk about it candidly, most will admit to being a bit awestruck by just how far and how fast land prices have risen. Simon Ellis, a young fourth-generation farmer from near Wawanesa, Man., says he and his neighbours have watched over the past decade as land prices have roughly tripled. “These days it’s about $3,000 an acre, 10 years ago it was about $1,000 an acre,” Ellis tells Country Guide. “As a young farmer, you look at that and you wonder how you can possibly afford it.” Another young Manitoba farmer echoes that sentiment. Chris McAllister farms just north of Portage la Prairie, where higher-value crops like potatoes and edible beans cover a lot of the ground. He says the price of land depends on who’s buying, who’s selling and what day it is, but he’s hearing values quoted in a range from $4,000 and $6,000 an acre. “Even with those higher-value crops, it’s tough to justify buying land at these prices, and to make it pencil out,” McAllister says. It’s seldom a good idea to bet the farm on conclusions you draw from looking at just one area, or just one season of grain prices. After all, land markets are always largely local markets too, but a lot of farmers throughout North America are seeing similar trends over the recordsetting past few years. Even so, grain prices have fallen, and it raises the question: are land prices experiencing a Wile E. Coyote moment? Have they just run off a cliff, and are they currently suspended in mid-air, blissfully unaware of what’s about to happen? Or are today’s land prices actually supported by a strong foundation? Few people in Canada are better situated to 22 country-guide.ca
answer that question than J.P. Gervais, chief agricultural economist for Farm Credit Canada, the country’s largest agricultural lender. He says the answer to the question of farmland values isn’t a blanket one that covers the entire country. Instead, it can roughly be split into two regions, east and west. In the West, it’s largely driven by the productive value of the land itself for crop producers, as there are few competing land-use industries. In places like southern Ontario, however, extraneous factors, like a preponderance of supply management producers competing for the same land base, can make the picture a bit muddier. “The ratio I always look at is crop receipts to farmland prices,” Gervais says. “Across Western Canada, that number is right about where it’s been for the past 40 years. Saskatchewan, for example, is right on that trend line. In Ontario, where you have those other factors at play, it’s a bit higher, but even at that, it’s not dramatically overvalued based on this ratio. It is possible, depending on what happens with commodity prices, that you could see a slight decline in Ontario.” Gervais cautions that the 2014 income numbers aren’t yet fully included, but says that for all the sound and fury about what might be happening to farm incomes, the numbers to date aren’t as discouraging as the headlines may have led many to expect. “It certainly wasn’t the best year, but I don’t think it was a complete disaster either,” Gervais said. “Looking forward to 2015, forecasts are expecting about a five per cent increase in crop receipts over this past year, which would support farmland values.” In no small part, that’s because domestic incomes are calculated in Canadian dollars, while international grain sales are denominated in U.S. dollars. As the Canadian dollar has softened and flirted with the 80 per cent mark, it has served to cushion the blow for grain producers. March 3, 2015
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Is it time to sell? Have prices peaked, or will you regret taking the price you can get in 2015? Generally, however, farmland values seem to be flatlining as the entire industry catches its breath and adjusts to the new paradigm that’s emerged over the past few years, Gervais says. One person who’s been writing and speaking bluntly about North American farmland value for the past few years is Brent Gloy, first as an agricultural economics professor at Purdue University in West Lafayette, Indiana, and now from the family farm in Nebraska, where he and his wife have returned to farm. He’s been calling Midwest farmland overinflated for a few years now, but even he’s stopping well short of calling for an outright crash, saying instead there’s likely to be a modest adjustment downward over time. “If the question is, ‘Is this a Wile E. Coyote moment?’ I would say the answer is, ‘Yes, quite possibly, but he’s not hundreds of feet above the canyon floor, he’s just a few feet above it,’” Gloy responds. “It might drop a bit, but it’s not going to be the big impact and puff of dust.” Gloy said he wouldn’t be surprised if, over the next few years, a scenario of sideways commodity prices and a modest reduction of about 10 per cent in Midwest U.S. land prices were to unfold. When asked to comment on Gloy’s well-known position on the market, Gervais says parts of this country could possibly see the same sort of a pattern, but he’s also quick to add that anyone’s predictions are going to depend on a number of variables, such as when and how much crop prices rebound. “In Canada, southern Ontario is much like what he’s talking about in the U.S. Midwest, with the same crop mix,” Gervais says. “If we do see a longer period of lower grain prices, I think there is the potential there, based on the cropreceipts-to-land-price ratio, for a small move downward.” One thing nobody is predicting is an outright crash, not even the young farmers who are wistfully eyeing the nowexpensive land surrounding them. Continued on page 24 M arc h 3 , 2 0 1 5
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ith the heat leaking out of ag real estate markets north and south of the border, you can almost see landowners starting to ease back in their armchairs, settling in for a good, long wait. As an investment strategy, in fact, that might be a wise choice. All eyes are on the market, wondering if prices are about to sag, but for Mike Boehlje of Purdue University, there’s no “if” about it. With expectations of a rising interest rate meeting bearish commodity prices, American land values are softening. “We have been saying for the last year or more that we would expect them to decline over the next two to three years by 15 to 20 per cent,” Boehlje says. “It looks like that process is already underway.” Canadian prices may be supported by the weak loonie, says Bob Thompson, an appraiser near Calgary who works in nearly all of Canada’s central and western provinces, but he’s concerned about the effect of lower commodity prices on future land values. And he doesn’t believe he’s alone. A flat market has emerged in his area, though farm sales may not really show that until April since most deals go down in February and March. In the U.S., there are myriad regional factors that make it difficult to point to clear trends. eastern Corn Belt (Indiana and Ohio) land values, for instance, tend not to ratchet up or down as much as western Corn Belt (Nebraska, Iowa and Illinois) values. Still, recent survey results also suggest to Boehlje that this may only be the beginning of the decline. Yet land in the United States has been a wise investment, Boehlje adds. When part of a 20- to 50-year buy-and-hold strategy, it is a rare asset that offers both portfolio diversification and also an excellent hedge against inflation. But these economics haven’t favoured non-farm investors. “Land, properly purchased, is a very good investment, but, like anything else, you can pay too much for it,” Boehlje says. “Land historically generates a four to six per cent earnings return, and if I pay for land and it only generates three per cent earnings return, I probably paid too much.” Right now Indiana and Iowa farmland is only generating about a three per cent return
By Amy Petherick
he says, so investors just haven’t been able to stay in the game when farmers with long-term horizons start bidding prices up. “Farmers have had the purchasing power and a willingness to bid land values away from many disciplined investors,” Boehlje says. “But they (investors) can still buy successfully in permanent crops in Florida, California, and other parts of the country.” Not everyone shares Boehlje’s balanced outlook, however. Based in Omaha, Farmers National Company manages properties for nearly 6,000 landowners across the country and a significant number of them have been non-farming investors. “For years while I’ve been with this company, we’ve had investors call and want to buy land,” says Jim Ferrell, company president. That pace picked up starting in 2006, with investors taking over properties, improving them, and renting them out to local farmers. “Over a billion dollars’ worth of farmland was sold in 2012 in that class that we’re aware of,” Ferrell says. But some people would say that’s when smart money started to get out of the market. “I sit on the Federal Reserve Board here in the States, so I’m involved enough in interest rate discussions to know that we have fuelled an exuberance in land values that I think probably pushed land values at least 25 to 30 per cent above where they should have gone,” Ferrell says. “If you buy my theory, even if we just normalize interest rates, we’re going to pull a lot of money out of this market.” The counterbalance, however, could prove to be the strong Chinese market and ongoing government support for the ethanol industry. “If you want to put three legs under a stool and set the ag market on top of it, it’s monetary policy, the influence of China that hit this market in 2006, and the ethanol market that hit in 2006 that created the perfect storm,” Ferrell says. As long as the Chinese market holds at six or seven per cent growth, it will support U.S. land prices. Projections for the ethanol business also look positive for the first half of 2015, and Ferrell also thinks biofuels will offer similar results. “Land values are a symptom of what’s going on,” he says. country-guide.ca 23
business Continued from page 23 “I just can’t see it coming down,” Manitoba’s Ellis says. “I think it’s more likely to stay where it is.” In no small part, Ellis says, that’s because larger operations, which are becoming the norm, can typically put the resources together to purchase land without needing it to instantly generate net revenue. “They can just spread that risk out over more acres,” Ellis says. Ellis also notes that if farmland doesn’t fetch current values, many sellers aren’t under a lot of pressure, so they’d simply take the land off the market rather than settle for less than they think the land is worth. The recent 2015 Canadian Agricultural Business Outlook, an annual survey of producers co-sponsored by Country Guide, backed up the appetite to continue to acquire assets. In that report agricultural economist Al Mussell reported a declining sense of optimism within the sector, but noted that most farms were still comfortable making capital investments to grow productivity, writing in his report “…the larger the farm the more comfortable they are.” Down the road at Portage la Prairie, McAllister has the same sense of how the market is shaping up, saying non-traditional land buyers and even non-farming members of farm families inheriting land are going to likely keep values up. In the end he says his preference — and that of many young farmers — would be to own the assets rather than rent or lease land, but that may not be possible, at least for now. “I’m definitely an ownership guy,” McAllister says. “To me ownership is control and stability. But if that’s not possible, I do think there are creative ways to structure rental agreements, things like long-term rental agreements, that can do the same thing, especially if you can structure them so they’re winwin situations.” Gloy adds that it’s inevitable some producers will struggle through this period of lower prices, and he says the industry appears to be entering a period where good financial management will be rewarded. “There will be some pain, I don’t doubt that,” Gloy says. “The people who will be hurt are the people who are out of position — they’ve paid a lot for land 24 country-guide.ca
With near-term forecasts on North American farmland ranging from steady to down 25 per cent, most experts are saying now is the time for a long-range view recently and they’re heavily indebted, and they need the higher prices.” If all other things remain equal, however, what Gloy describes is more of a soft patch than a total wipeout — but he does admit there is one outlier he’s definitely keeping an eye on. “If the EPA were to start monkeying with ethanol mandate, that could really be significant,” Gloy says. “There’s little doubt that it was ethanol demand, in large part, that drove higher prices. If that were to be significantly altered, that would be bad news. I think there’s a very low likelihood that will happen, but it’s certainly something we should be watching.” Barring any significant policy changes, however, he says what producers are now facing is the typical up, down and sideways of commodity mar-
kets over time, something most famers understand well and will be able to manage through. FCC’s Gervais has been spending a lot of time on the farm-meeting circuit this winter, and says there’s no doubt farmers are a little nervous. One question that keeps popping up is whether the business is in for a replay of the terrible times of the 1980s. He says a bit of caution isn’t a bad thing, but also says he’s still optimistic about the sector for the most part, and key ingredients for a real train wreck are so far missing, such as high interest rates. “I always compare agriculture and the broader economy,” Gervais says. “When you put the two side by side, agriculture still looks like a pretty good place to be.” CG March 3, 2015
Ontario Soil and Crop Improvement Association
SOIL CHAMPION Recognizing outstanding achievements and advocacy in the cause of soil management excellence
Unlocking soil’s secrets key to crop growing success, says Soil Champion
By Lilian Schaer, for Ontario Soil and Crop Improvement Association
Every plant and organism has its likes and dislikes, and it’s unlocking those secrets that get you the results. That’s the belief of Haldimand County farmer Dean Glenney. He cash crops 200 acres near Dunnville on the former dairy farm that’s been in his family for more than 100 years – and his unique approach to growing corn and soybeans using what he calls “fence row farming” has been turning heads in recent years. Now, he’s been named the 2015 Soil Champion by the Ontario Soil and Crop Improvement Association (OSCIA). The Soil Champion Award is handed out annually by the OSCIA to recognize leaders in sustainable soil management, and was presented to Glenney at the organization’s annual meeting in London. An engineer by training with a degree from the University of Guelph, Glenney and wife Vonita spent many years growing fruits and vegetables nearby before returning to the home farm and focusing on cash crops. “If you sell fruits and vegetables, it has to be perfect or it is junk, so our efficiency and attention to detail comes from the berry farm,” he says. Over the years, different observations helped form his theory on the benefits of fence row farming, which he started implementing on his farm 20 years ago. When he was 14, his family moved from a two furrow to a three furrow plow and the extra width meant he was turning over virgin soil when he neared the fence row, soil that looked like it was full of little cubes. When their plow size went up again to five furrows, they removed some fence rows on their farm to make bigger fields, and Glenney noticed that the corn was two feet
higher where the fence row had been than in the rest of the field – but only in the first year. “The key to recreating the fence row in my fields was planting forever in the same place and making the soil of a fence row every 30 inches across a field,” explains Glenney. “The crop is planted in twin rows into the root ball of the previous year’s crop, always in exactly the same location.” The crop puts roots down about five feet right through the clay layer, following the old root paths from the year before, and although he admits his corn looks “a bit sick” when it first comes up, Glenney believes it’s that early struggle that actually helps it do better later on in the season. It took six years to start seeing results, and it was about 14 years ago when he first reached corn yields of 236 bushels per acre. The yields kept creeping upwards, and in 2010, the Glenneys won Pioneer’s Ontario Corn Yield Challenge with an average yield of 271.8 bushels per acre. This led to him meeting research scientist George Lazarovits, who felt it wasn’t just the healthy soil structure that was responsible for the high yields on the Glenney farm. “George started doing research here on bacterial colonization and because we don’t disturb the soil, bacteria is being colonized specifically to provide the nutrients that corn needs,” Glenney explains, adding that cultivation makes bacterial colonization more random. “There is 20 years’ worth of crop residue in the ground now.” “The availability of nutrients is the key,” he believes. “We found only 55 per cent uptake of available nutrients in 60 days on conventionally grown corn on a nearby farm, whereas we found up to 90 per cent uptake on my fence row corn from the soil that was touching the roots.” Glenney soil tests his fields and uses 215 pounds of nitrogen, 54 pounds of potassium and 70 pounds of phosphorous per acre and reaches yields that are in the 300 bushel per acre range.
Now he’s looking at what he might be able to do next and that includes applying fungicides – Glenney has built a sprayer that will fit into the existing tracks on his fields – as well as using cover crops. Lazarovits’ research on the Glenney farm is ongoing too, and he’s convinced Glenney to plow a small strip of his field to see how long it will take that soil to recover from being plowed. An initial barrier to fence row farming was being able to precisely hit the same row over and over again, but the advent of GPS solved that challenge. Glenney’s high yielding corn has led to many awards, including National No-Till Association Soil Practitioner of the Year. “It’s neat to be recognized,” he says of all the attention he’s received for his soil management practices. “Dean Glenney epitomizes what the Soil Champion Award is all about. His efforts have contributed very significantly to understanding the importance of soil life and how it contributes to healthy, resilient, and extremely productive agricultural soils,” says Alan Kruszel, newly appointed President of OSCIA for 2015. Do you know someone worthy of the title Soil Champion? The submission deadline for the 2016 Award is April 30, 2015. For the application form and details, visit: www. ontariosoilcrop.org/en/resources/sca.htm
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I do,
ANd I don’t? Let’s agree. Prenuptial agreements will never be easy to talk about, but knowing the facts can help you get started
t a meeting this winter I sat down with a friendly group of farmers. The conversation turned from the weather to crop prices and slowly shifted into the personal, mostly about children. We shared our farms’ stories, our wins and our defeats. Then the man with tuffs of white hair beside me bent quietly toward my ear as he told me about how a woman had stolen his heart and then his farm, a farm that had been in his family for five generations. His hands shook in anger and despair. It happens. Relationships do break up, whether you’re a farmer or not. According to Statistics Canada in 2009, the probability of divorce in this country is about 41 per cent. With second marriages and people living together, the rate of split-ups is even higher. Although there’s no official data, says Mike Rosmann, a farmer and psychologist from Iowa, it appears the divorce rate for farmers has become more equalized to the general population. So let’s not kid ourselves. Farms are big assets that hold generations of emotional punch and can be instrumental to the business. It can take the legs right out from under a farm if a key section of good land or half the quota is lost. But most people simply don’t think of getting a prenuptial agreement signed. They don’t want to consider or talk about anything that might imply their partnership might not succeed, says Rosmann. “When people get married or decide to live together, they want and expect to make their relationship work, so most don’t even think about creating a prenuptial agreement.” From his office in London, Ont., Mike Bondy, a chartered accountant and national director of succession planning with Collins Barrow, says the divorce rate of his farm clients in southwestern Ontario is 26 country-guide.ca
By Maggie Van Camp, CG Associate Editor
much lower than the average population, only about five per cent. However, that doesn’t lighten the emotional and financial impact of breakups on farms. “Divorce is the No. 1 thing I hate to deal with, and prenuptial agreements are the second-worse thing to deal with, so I try to do prenups,” Bondy says. Prenuptial agreements are basically a way of negotiating a divorce settlement ahead of time, before you even get married. Each party has to have their own independent lawyer and those lawyers tend to tell the person marrying the farmer to not sign the contract. It can be hard to get everyone to see the benefits of preplanning for something negative. “It’s difficult, but I tell many clients really, you should have a marriage contract,” says Bondy. Planning becomes even more important if you have substantial assets at the time of marriage, whether inherited or earned. Bondy says it’s more common to have prenuptial and cohabitation agreements in second marriages, where one or the other partner owns significant assets. This is often because they’ve been through a divorce or know someone who has been through a nasty breakup and want the assets to go to the next generation.
So what are the laws? The specifics of divorce and separation law vary from province to province and from state to state. The laws on their own are complicated, and then there’s the additional complicating factor that the facts of each case are unique. However, the essential idea behind all these laws is that value created or property acquired during the relationship will be equally shared on separation. March 3, 2015
business
The value of the property a spouse owns on the date they get married is not part of the net family property, just the increase in value during their marriage. In Alberta, for instance, if you’re married, the Matrimonial Property Act applies, and the increase in the value of property acquired during the marriage is equally divisible, says Gayle Langford, lawyer and registered family mediator at Red Deer. It doesn’t matter whose name the property is under. In law, the term property means everything that can be transferred — shares of a family farm corporation, inventory, quota, land, equipment, homes — even if it’s in your own name or valued as part of your farm corporation. Gifts and inheritances received during the marriage are excluded and, in most provinces, any growth on these gifts is excluded. The matrimonial home has a special status. There might be complicated issues, such as children or an established right to occupy the home. Contact a family lawyer if you’re in that position. It’s way beyond this article. Nuptial means legally married, and cohabitation means living together but not legally married. You will be considered common law for taxes after certain lengths of time, depending on where you live. As long as the property is still in the farmer’s name only, it will remain that person’s after the common-law relationship breaks up, subject to the claim for the increase. However, the rules for settlement after living together are changing. Recently, the Supreme Court of Canada decided where there’s a “joint family venture,” such as a farm, the value created during the relationship may be split. To protect against this, the common-law spouse who doesn’t own the property needs to be compensated fairly for what they were doing on the farm so they don’t have a claim. It’s common for farmers not to pay themselves well and not to pay for labour from wives and children. “Absolutely, pay the cohabitating partner a reasonable salary all along for what they were doing on the farm,” says Bondy. The law regarding living together in Alberta is quite a bit broader than most other provinces. If you live in a relationship with another person outside of marriage, and if you share one another’s lives, are emotionally committed to one another and function as an economic and domestic unit for a period of not less than three years, there could be legal obligations between the parties. “That one might catch a few farming families by surprise,” says Langford. “I know of siblings, and family members, for example, elderly mothers living with their children, that may fall under the legislation and have ongoing obligations.” March 3, 2015
The agreements So what can we do to protect the farm? Written agreements, and prenuptial and cohabitation agreements can be structures to help ensure the family farm legacy will be intact and the leaving partner will be taken care of if the couple split. A prenuptial agreement can be modified later if both partners agree, even after they marry, or you can write an agreement while married, in which case it is called a postnuptial. These agreements can help reduce the impact of divorce, but if not handled properly, they can also cause more problems. “The term prenup has too much baggage: images of the gold-digger versus the controlling patriarch. A better name would be Family Farm Legacy Agreement,” says John Mill, succession specialist and tax lawyer from near Windsor, Ont. In a family farm, the goal is to protect the family aspect of the farm itself, so an agreement might want to acknowledge the family intends to keep the farm in the family for generations, says Mill. To demonstrate it’s a fair agreement, it has to protect a legitimate interest and make sure the spouse is taken care of as well. When it’s unfair, such agreements get set aside. Separate lawyers should review the completed agreement, since one attorney cannot represent both parties in the event of a divorce or dissolution of marriage. “A lot of prenups are tossed out of court because they aren’t done properly,” says Bondy. Continued on page 28
“Divorce is the No. 1 thing I hate to deal with,” says Bondy. “I try to do prenups.”
country-guide.ca 27
business Continued from page 27
Protect your farm from divorce The following are some ways, other than written agreements or not getting married, to mitigate your farm’s vulnerability to divorce. Check with your trusted advisers, lawyer and accountants before doing anything, and whatever you do, don’t spring any surprise arrangements on your family. 1. Consider not transferring gifts to a child until after marriage. In most provinces, gifts or inheritance after the wedding date are not joint property. 2. Some pieces of land are more important to the operation than others, so keep them in the married-farmer’s name only, especially if it was a gift. Sometimes you may be encouraged to put joint names on property to avoid probate fees, but remember, if it’s in joint names, the spouse legally owns half. 3. E ncourage the new couple to buy a house or small acreage as their matrimonial home instead of a house on larger acres or on land with barns essential to the operation. 4. Pay partners or spouses a reasonable salary for what they are doing on the farm. 5. Another way to exclude farm property from net family property is to use the tools available through your farm corporation, says Bondy. If the farmer gets married, the increase in value of his or her shares is included in the calculation of net family property. So Bondy suggests an estate freeze just before marriage. The farmer exchanges his or her common (normal growing-invalue shares) for fixed-value preferred shares. Then a parent subscribes for the new common shares and the day after the wedding, gifts the shares to the newly married, next-generation farmer. The new common shares have little or no value at that time and when gifted, the parent indicates in writing that the gifted shares, any substituted shares and any income from the shares are to be excluded from the calculation of family property. The preferred share value is frozen and is an asset at the date of marriage (so their value is excluded in a divorce), and the growth in value of the new common shares is not included in family property for divorce purposes. 28 country-guide.ca
Over the 40 years he’s been helping farmers with succession, Bondy has seen a couple of ugly emotional cases just trying to work out a written agreement. “I’m a big believer in them (prenups) but I hate, hate, hate to do them,” he says. When individuals with large interests in separate assets are planning to marry, prenuptial agreements can help achieve clarity and trust and they can dispel suspicion. However, they can sometimes be very hurtful and add stress to new family relationships. Bondy has seen too many tears hit the floor over this discussion and says it’s important to manage the process with fairness and sensitivity. Prenuptial and postnuptial agreements simply divide the net assets if separation occurs. These agreements typically list all the property each person owns along with all debts, and they specify the rights each will have if the marriage ends in divorce, dissolution, or death of a spouse. Bondy advises his client to ensure fairness. For example, the matrimonial home is valued like a house in town, and cash settlements for the spouse can be written right in the agreement. Often on farms the house is owned by the family farm corporation or is on a large property or the property has a barn on it. When done properly, the great thing about doing a formal prenuptial or cohabitation agreement is that couples and families fully discuss the couple’s present finances and future goals. “The discussion around a prenuptial or cohabitation agreements is what is valuable,” says Langford. “Anything that helps families discuss all the what-ifs and to come to an agreement before the what-if occurs makes things more predictable and easier when those what-ifs happen.” For the agreement to be enforcible, each party must completely and accurately disclose all assets and liabilities existing prior to the marriage, including copies of tax returns, balance sheets and deeds. The ones Langford has done listed the assets each party brings into the marriage with an agreed value, and an agreement that if the asset increases in value, then the increase is divisible if the marriage lasts a set amount of years. In her experience with farm families, Langford finds there are two key issues, the farm as a business and the emotional context of the family farm. For example,
“ The term prenup has too much baggage,” says Mill. “A better name would be Family Farm Legacy Agreement.” the home quarter might have family history tied to it. It may be the site of the original sod hut. “If you don’t want to have to sell off a particular parcel of land in case of a divorce to pay out the other spouse, then an agreement might be of benefit,” says Langford. As farms increase in size and new family members become a part of the business, either directly or indirectly, Langford says a real need emerges to discuss how assets and liabilities will be divided. For these agreements to be effective, they need to address all the what-ifs and formalize their informal agreements. If families want to protect the farm as a business, then they need to formalize all the agreements, not just prenuptials, says Langford. For example, land and farm assets can be held in family trusts, which if done properly can provide some protection for family-owned operations. To protect the farmland from divorce, then a “gift” might be better to be a subdivided acreage and an agreed value as of the date of the gift, or loaning formally the funds to buy land, she says. For more information Ohio state has a helpful fact sheet on prenuptial agreements for farmers (http://ohioline.osu.edu/ bst-fact/pdf/Prenuptial_agreement.pdf). CG March 3, 2015
Canadian Forage and Grassland Association
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Canadian Forage and Grassland Association
Welcome to the second annual Forage & Grassland Guide, produced in partnership by the Canadian Forage & Grassland Association (CFGA) and Farm Business Communications and distributed through Country Guide, Canadian Cattlemen and Le Bulletin des agriculteurs. It focuses on issues of importance of forage and grassland to crop and livestock producers across Canada. For more information on forage and grassland management in your area, we encourage you to contact and participate in the activities of your regional or provincial association. Canadian Forage & Grassland Association C/o Corie Arbuckle 63 Clearwater Road Winnipeg, Man. R2J 2T4 Phone: (204) 254-4192 info.cfga@gmail.com www.canadianfga.ca BC Forage Council Fran Teitge Phone: (250) 267-6522 Email: bcfc@bcforagecouncil.com Alberta Forage Industry Network Lyndon Mansell Phone: (780) 592-2262 Email: basicman@telusplanet.net www.albertaforages.ca
Saskatchewan Forage Council Phone: (306) 969-2666 Email: office@saskforage.ca Manitoba Forage and Grassland Association Wanda McFadyen Phone: (204) 475-2241 Email: info@mfga.net Ontario Soil and Crop Improvement Association Andrew Graham Phone: 1-800-265-9751 Email: agraham@ontariosoilcrop.org www.ontariosoilcrop.org
Ontario Forage Council Ray Robertson Phone: 1-877-892-8663 Email: ray@greyagservices.ca Soil & Crop Improvement Association of Nova Scotia Carol Versteeg Phone: (902) 758-3530 Email: carol.versteeg@scians.org www.scians.org Quebec Forage Council / Conseil québécois des plantes fourragères
Helene Brassard Téléphone : (418) 719-9972 Courriel: info@cqpf.ca
A special supplement brought to you by: ADVERTISING SALES 1666 Dublin Ave., Winnipeg, MB R3H 0H1 (204) 944-5765 Fax (204) 944-5562
2015
Lillie Ann Morris (905) 838-2826 Email: lamorris@xplornet.com
Forage & Grassland Guide
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Forage Guide 2015 Trends in the Canadian forage industry Regional groups across Canada agree in the need for more recognition and research for forage and grassland By Doug Wray, Chair, Canadian Forage and Grasslands Association
T
he Canadian forage industry is impacted by dynamics at home and around the globe, as is all of agriculture. In a changing world, producers continually evaluate and build strategies that will support successful business plans. Identifying trends is one way to clarify the picture and provide direction. The following is a look at several trends at play in the forage industry.
Demand
Beef and milk consumption are increasing in many developing countries as their economies grow and their citizens have more disposable income. This is having an impact on our forage industry in a couple of ways. First, Canadian beef is being successfully marketed in many of those countries, helping create the record-high prices for cattle and beef here at home. Those record prices are widely expected to drive herd expansion. The cow herd diet is almost exclusively forage, and more acres and higher-yielding varieties will be needed to fill the gap. The second impact of improving diets in developing countries stems from their desire to produce more meat and milk at home, despite the lack of all the resources necessary. For some, importing high-quality forages is a successful strategy to increase production. Japan, Korea and China are importing Canadian forages. Some Middle Eastern countries have decided to concentrate their available irrigation water on the highest-value crops and are now major importers of for-
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Forage & Grassland Guide
ages for their dairy and camel herds. Canada, with our fertile soils, rainfall, infrastructure and skilled producers, is well placed to export to these markets.
Supply
Forages are Canada’s largest crop by area, with 32 million acres of tame perennials and annuals. These are the pasture, hay, greenfeed and silage acres. Another 37 million acres of native pasture rounds out the forage supply for Canada’s ruminant herds. Approximately 80 per cent of the beef diet is forages. For dairy, the portion is 60 per cent. Competition for land with cash crops and other uses will limit the increase in acres to feed a larger herd. Producers will look to improved varieties, better management, more use of legumes, and production systems that optimize their resources to create the most value. Most of the increased acres will come on mixed farming operations as they adjust rotations to grow more feed. Some cash crop producers have successfully included high-quality hay acres in their rotations. These acres are intensely managed to produce specific products for the dairy and equine markets in North America as well as primarily dairy markets overseas. While these acres are relatively small in the big picture, they bring important diversity to monoculture rotations and farming enterprises.
Environment
While there is increasing recognition of the environmental goods and services provided by forages, progress has been slowed by the science to sup-
port it. The wide variability of growing conditions and huge complexity of interacting cause-and-effect factors make it extremely challenging and costly to quantify dynamics such as greenhouse gases, carbon sequestration, nutrient flows, water infiltration and runoff. Fortunately management practices that enhance forage productivity and longevity are also positive for the environment. When producers adopt better management practices, along with more production, they get environmental benefits they intuitively know are there, but rarely can quantify. Support may be coming from multinational retailers wanting a “sustainable production” stamp on the food they sell. This will play out through organizations like the Canadian Round Table for Sustainable Beef.
Research
Forage research has been declining in Canada for the last 30 years. The tide is turning. Since forming five years ago, the CFGA has effectively promoted the need for, and value of, forage research. Great work by the provincial forage and livestock associations and strong leadership from the BCRC and its staff, particularly Andrea Brocklebank and Reynold Bergen, have greatly increased the investment in ways that will help retain capacity and encourage succession plans for retiring scientists. Alberta, Saskatchewan, and Manitoba have collaborative research programs to deliver more productive forages, and management systems which have an energized focus on realizing the full potential of the sector. n
2015
Dryland grass breeding in the Canadian Prairies
By Duncan Morrison, Freelance writer
Bruce Coulman is a professor at the plant sciences department in the College of Agriculture and Bioresources at the University of Saskatchewan. He has helped develop and register 22 forage cultivars through research programs at the University of Saskatchewan and Agriculture and Agri-Food Canada. Highlights include the development of AC Grazeland, a bloat-reduced alfalfa, and the development of several hybrid bromegrass cultivars. We recently contacted professor Coulman for his thoughts on perennial forage breeding, research, climate change and the advantages of forages as a crop.
Q: Why is forage breeding important?
A: In all crop types, it is important to have breeding programs to consistently improve the varieties grown by farmers. In the case of forages, they have a larger acreage of land in Canada than other crops. Our forage-breeding programs allow us to improve production, and develop varieties resistant to diseases.
Q: Is some of the forage breeding you are working on in response to our changing world, in particular climate change on the Prairies?
A: As long as plant breeders are testing their breeding populations in the field, varieties adapted to a gradually changing climate will be selected, since we select the most productive lines each year, whatever the climatic conditions. In addition, as part of our program, we are evaluating species which are presently marginally adapted to our climate but which may become better adapted under climate change.
Q: Where do you feel the most potential is in breeding new varieties — native vs. tame?
A: Most of the focus is with tame grasses and legumes as producers are
most often growing these. With native species, there are challenges with producing seed, which drives up seed cost to the producer. A collaborative program over the last 20 years involving Ducks Unlimited Canada, Agriculture and Agri-Food Canada and the Universities of Manitoba and Saskatchewan has resulted in seed of “ecological varieties” of a number of native species being available to producers.
Q: What traits do producers demand? Is it primarily yield?
A: It is primarily yield; however, there is demand for improved varieties for grazing purposes that grow early in the spring and stay green later in the fall. There are numerous other traits that interest individual producers, such as alfalfa varieties that retain their leaves when dried or when frosted in the fall.
Q: Why did the hybrid bromegrass produce the highest beef gains as compared to the meadow and smooth bromegrass?
A: That is likely due to a slightly better forage quality of hybrid bromegrass, especially at the late vegetative stage of growth when grazing is often done. The fibre content of hybrid brome is somewhat lower than smooth and meadow brome at this stage.
Q: What is the reality for the potential of grasses for biomass production? Is ethanol really viable on the Canadian Prairies?
The University of Saskatchewan has evaluated biomass production of adapted cool-season grasses and found intermediate wheatgrass to be the highest yielding. Photo: Dehaan/Creative Commons
2015
A: There is still work to do on the methodology for economically producing ethanol from cellulosic materials. If this was to become a reality in Western Canada, cereal crop straw would provide a high-volume reliable source of material for ethanol production. There are also certain grasses that can
be grown on marginal land that could be used for ethanol production, but yields on these areas would be lower. There has been a tremendous amount of money and time put into developing switchgrass and miscanthus grass as biomass sources south of the border. But these species are not as well adapted to Western Canada. We have evaluated biomass production of adapted coolseason grasses and found intermediate wheatgrass to be the highest yielding. Rather than for ethanol, grasses may have more potential as energy sources through direct combustion of pelleted materials. Pelleted switchgrass is already being used as a fuel source in Eastern Canada and the U.S.
Q: What would you tell the world about Western Canada’s forages?
A: Forages have a lot of advantages as a crop. They provide large amounts of quality feed for ruminant animals. In addition, perennial forages provide numerous benefits to the environment, such as soil conservation and wildlife habitat. It is important we continue to improve these kinds of crops. n F o r a g e & G r a ss l a n d Gu i d e
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The Normandins have modified a small square baler to turn big squares into small squares. While Norfoin Inc. puts up all its hay in large square bales, half the hay is sold as small squares. The conversion is made after the hay is harvested and dried.
Photo: Allan Dawson
Quebec haymakers use homemade dryer to improve quality The Normandins also modified a small hay baler to convert big square bales into small ones By Allan Dawson, manitoba co-operator
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avid Normandin and his brother Mathieu preferred driving tractors to milking cows and that’s why they make hay and not milk. The brothers, along with their father Luc and Luc’s partner’s daughter, Audrey Mailloux, operate Norfoin Inc., 57 km southeast of Montreal in the Montérégie region of la belle province. The operation had been a dairy farm started by David Normandin’s grandfather in 1958, but switched to haymaking in 2000, Normandin told
“We dry about 90 per cent of our hay with a custommade bale hay dryer.” David Normandin
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a tour group attending the Canadian Forage and Grassland Association annual meeting in nearby Bromont on November 17. The company also provides snow removal services during the winter. The family operation puts up around 6,000 large square bales from its own 618 acres of land, plus bales from another 198 acres under contract. It also buys 6,000 large square hay bales. The Normandins dry almost all their hay, have almost an acre of inside hay storage, including a new 50x110-foot building, which will eventually be heated, and they can convert large bales to small square ones as required. About half of Norfoin’s hay is sold in Quebec and the rest is exported to the United States through hay brokers, Normandin said. The company puts up various hay
mixes, including alfalfa, timothy, orchard grass, fescue and clover. And the hay goes to a wide variety of livestock, including milk cows, dry cows, calves, horses and even zoo animals. Hay buyers demand top quality so the Normandins strive to get their hay up in good condition and keep it that way. After the hay is crimped and cut, it’s ‘tedded’ or fluffed up to speed drying. Then it’s raked and baled. The bales are picked up the same day to prevent sucking up moisture from the field. They can pick up bales as quickly as they are made, Normandin said. The hay is baled at about 25 per cent moisture. “We dry about 90 per cent of our hay (to 10 to 12 per cent) with a custom-made bale hay dryer,” Normandin said. “We saw a dryer in Europe but it was really expensive so we thought about building it. We began the first year with
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some prototypes, then we built a dryer to meet our needs. Now we dry 100 (big square) bales at a time.” The dryer is wood fired. Wood is plentiful and cheaper than other forms of energy, he said. Hay and fire don’t mix. A wood fire heats water, which feeds a radiator used to warm air blown through the bales. It takes six to 15 hours to dry a bale depending on its moisture content. They can dry about 300 bales a day. The dried bales are stacked 11 high in sheds. All of Norfoin’s hay is put up in large square bales because it’s faster, Normandin said. “We can do the work of 10 people with a small square baler with only four people with one big square baler,” he said. However, five years ago, after sales of large squares slowed, the company built its own system to turn large square bales into small ones. Now half of Norfoin’s hay is sold as small squares. The family brought a small square baler into one of its sheds, powered it
A World of Knowledge in Every Bag…
David Normandin of Norfoin Inc., a family-owned haymaking operation in Saint-Césaire, Que., explains the operation, including their homemade wood-fired hay dryer, which can dry 100 large square bales at a time.
Photo: Allan Dawson
with an electric motor and modified it so it turns a big bale into small ones. Normandin said they cut their hayfields two to four times a season. Nitrogen is applied after each cut and manure is spread every spring. n allan@fbcpublishing.com
See the Manitoba Co-operator’s website for a video about Norfoin Inc.
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Research has shown that forages, like cereals in the rotation, can provide an added boost to subsequent corn crops.
Getting back to the basics the fundamentals of good forages New market opportunities may beckon, but quality remains the key By Ralph Pearce, production editor, country guide
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very time commodity prices start to cycle lower, questions are asked and pencils are put to paper: “Should I start thinking of a cropping alternative?” In Eastern Canada the considerations are often edible beans, identity-preserved soybeans, oats… maybe even barley or flax. But what about forages? The answer can be less than straightforward, depending on whom you ask. Today’s challenges to produce quality and quantity are different than 15 years ago. Some are based on demographics, or the availability of land and dairy quota. In the past three years, there also has been considerable speculation on the potential for export opportunities through the construction of an alfalfa compaction facility somewhere in Eastern Canada. Despite the potential for marketing forages to New York State or the Middle East, reality always comes back to the fundamentals. Forage growers tend to adhere to the notion of “the more you know, the better you grow.” Joel Bagg, forage adviser with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA), says growing forages for compaction or export requires strict quality standards. Stepping into a relatively new crop often requires new equipment purchases or the adoption of a new production regimen, not to mention a level of familiarity that takes several years of experience.
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Planting considerations
Still, there is room for a quick refresher on the basics of forage production. For instance, is spring or fall better for establishing a good hay crop? Aric Bos and Martina Pfister, agronomists for DuPont Pioneer, say spring is becoming the easier choice for establishment. It depends on the individual producer’s situation, and there are some who simply default to the fall because there’s a wider window. But spring planting can offer several advantages.
“Moisture is the biggest challenge (and) the longterm trend would say that moisture is a lot more dependable in the spring.” Aric BoS, DuPont Pioneer
“Moisture is the biggest challenge,” says Bos, who is based in Exeter, Ont. “This past year (2014) there was no problem: I saw a lot of good, established forage crops planted mid- to late-August after wheat, but there was plenty of moisture throughout the year. The long-term trend would say that moisture is a lot more dependable in the spring, so that would be my first choice. Get it in between the end of March and most of April is a
good window — even until mid-May, depending on where you live.” But that may not be convenient from a logistics standpoint, as it conflicts with the other seeding and spraying operations. On the other hand, late summer to early fall provides a wider window following wheat harvest, with the midsummer dry spell usually done by the time a forage crop should be planted. But finding the balance between sufficient moisture late in the season and a narrowing window before first frost may be expecting too much. By the same token, heavy driving rains in May, June or October can make things difficult for early stage forage stands. That’s also why Pfister also prefers spring, and the earlier the better. “Alfalfa only needs 3 C to germinate, so it can go in earlier in the spring,” says Pfister, who is based near Baltimore, Ont., just north of Cobourg. “But what we need in the summer is about six weeks of growth before the first frost, so if the alfalfa can’t get established enough — whether it’s due to dry weather or planted too late — the risk of winterkill is higher.”
Other influences
Pfister notes a pair of trends taking place in forage production. One is more young farmers are entering the family operation, so it’s important in helping them understand why
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their fathers or grandfathers grew forages as feed for their cows. And Bos notes some recent management challenges such as herbicide resistance provide an opportunity to put forage into the rotation. “Just by geography, there might be some weed resistance problems, like some of the counties of southwestern Ontario where there’s dairy but also pressure with glyphosate resistance. A lot of those guys would be growing Roundup Ready corn and soys in the other parts of the rotation, and that can make things more complicated in terms of keeping glyphosate resistance at bay.” Bos says that even in times of higher commodity prices, the renewed interest in forages has been positive. Farmers generally have a good grasp of their cost of production, he notes, and many are “pencilling out” the numbers for forages, even if they’re not involved in livestock. In the 1990s, Ridgetown College provided a comprehensive study that found that wheat in the rotation provides a yield boost to subsequent corn and soybean crops. Bos says forages can do the same thing. “From what I’ve seen, OMAFRA and the industry and also the University (of Guelph) have done a good job of showing the benefits of alfalfa in the rotation,” says Bos, citing the potential for a seven to 10 per cent benefit to the corn crop that follows alfalfa. “Even though growers are making margins in their cash crop ventures, they’ve started looking at forages with more interest. And there’s a pretty well-established hay market that’s always been there, and that always has a need for good-quality forage. Hay making — at least dry hay — has always been something of an art form.” Pfister adds that farmers do realize the importance of good-quality forages. “When you have high commodity prices it means that any supplementary feed coming in will be more expensive, too. So the better quality forage is, the cheaper the feed bill may be at the end of the month.” n Moisture is the limiting factor in establishing a good forage crop, which is why spring planting is favoured over the fall.
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The forage challenge — higher yield and higher quality One goal is to break the inverse link between yield and digestibility
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orage production is a vital component of Canadian agriculture, since it covers nearly half of our cultivated land. Moreover, forages make up around 60 per cent of dairy rations and 80 per cent for beef cattle. Innovations in forage production will be essential for these sectors. The challenges and opportunities will mainly hinge on four major issues: economic and environmental sustainability, social acceptability of farming activities, climate change and world population growth. What are the “forage solutions” to these issues? They will have to involve the improvement of both yield and nutritive value, which represent the two mainstays of successful forage production. A consistent higher yield will improve profitability and competitiveness of dairy and beef farms, while reinforcing our capacity to feed a growing world population. At the same time, forages that are more digestible and show higher sugar content will allow us to increase their share in the ration. They also allow us to decrease our use of grain, sta-
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By Gilles Bélanger
bilizing production costs, reducing nitrogen release to the environment and making those same grains available for human consumption.
Potential versus actual yield
Yield of perennial forage crops has not increased as fast as for many annual crops like corn and wheat. A recent study showed that U.S. alfalfa yield increased by 0.25 per cent per year, compared to 1.4 per cent per year for silage corn. The authors attribute this low yield increase to the complexity and large number of forage species, to the fact that all their above-ground biomass is harvested and to a lack of investment in breeding. Potential yield at any location depends on conditions like solar radiation, temperature, CO2 concentration in the atmosphere as well as on the characteristics of the species. However, this yield potential is rarely achieved due to stress — cold, drought, pests, poor drainage and other reasons. Hence, we sometimes observe a big difference between the potential yield and what is actually achieved. This difference could fur-
ther increase if we intensify our use of marginal land for growing forages. Improving the yield potential of our forage crops is perhaps possible, but will require major and well-targeted research. Avenues for research include improving photosynthetic efficiency, or modifying biomass distribution between above- and belowground parts of the plant. In the short and medium terms, reducing the difference between potential and actual yield seems a more promising approach. Very little research has been carried out to quantify this difference. A recent
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U.S. study suggests that the average yield of alfalfa in the field is only around 30 per cent of its potential yield. In order to decrease this difference, one must better understand the effects of different stresses on our forage species, so that we can develop cultivars and agronomic practices that will enable them to better tolerate these stresses.
Cold tolerance and digestibility
Our winter conditions are a good example of stress conditions that can cause significant yield losses of perennial forage crops, particularly in winter-sensitive species like alfalfa. Since the introduction of alfalfa in Quebec, breeder selection and sound agronomic practices have improved winter survival. One only has to think about the “Apica� alfalfa cultivar or the recommendations on harvest management in the fall. However, these improvements are not sufficient to eliminate the risk of winter damage.
the expense of the yield. Also, alfalfa cultivars expressing better digestibility have been developed in recent years but, in most cases, these have showed lower yields or a lower persistence. Therefore, the challenge is to increase digestibility of forages while maintaining or even increasing their yield. It is quite a task, since it requires dissociating yield and digestibility. Our research studies on timothy have shown this to be feasible if we decrease the ratio between lignin and cellulose. Similar results on
alfalfa have recently been obtained by an American research team. Thus, there is hope. Producing more forages of higher quality is vital to Canadian farmers and to our planet. However, to achieve this goal, sustained multidisciplinary research efforts are necessary. n Gilles BĂŠlanger is a researcher for Agriculture and Agri-Food Canada, and recipient of the 2013 Canadian Forage and Grassland CFGA Leadership Award. This article is based on his presentation to the CFGA annual meeting in October 2014.
A recent study showed that U.S. alfalfa yield increased by 0.25 per cent per year, compared to 1.4 per cent per year for silage corn Other recent studies show more promise. Using a new selection approach, Canadian breeders have shown it is possible to improve cold tolerance of alfalfa and red clover by more than 5 C. These innovations are especially valuable in the context of climate change in which we foresee an increasing risk of winter damage for alfalfa. Is it possible to improve the nutritive value without decreasing the yield? Digestibility of forages is one of the crucial aspects of their nutritive value. Improving digestibility is possible but is often associated with a decrease in yield or persistence. For example, shortening the interval between cuts, and harvesting at a younger stage allow improving the digestibility of forages, although at Photo: Tessa Nybo
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Nuffield scholar focuses on energy-dense forages Study will explore using energy-dense perennial forages as annuals
By Duncan Morrison, freelance writer
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ne learns fairly quickly upon first meeting him that Clayton Robins is a bundle-of-energy person. So it comes as no surprise that the 2013 Nuffield Scholar has actually travelled the world to learn more about energy. Energy-dense forages, that is. “Every other country I visited looks at sugars in forages except here in North America,” says Robins, who now spends his post-Nuffield Scholar travelling days as executive director of the Manitoba 4-H Council. “We are fibre-focused. My report will provide a big-picture perspective as to how we can adapt the beef production model we currently are using, which will require a shift in thinking. I feel very privileged for a guy from Rivers to present my report and knowledge on beef production gleaned from the top experts in the world. There was no other way for me to do that without doing so as a Nuffield Scholar.” Robins still operates a mixed farm in Rivers, Man., with wife Rebecca and son Quinn, who Clayton says stepped up bigtime during his Nuffield travels to keep the farm in good stead with the help of Clayton’s parents, Brian and Arlene, who live on the property as well. “I travelled to Argentina, England, Wales, Scotland, Northern Ireland, the Republic of Ireland, Sweden, Finland, U.S.A., Australia, and New Zealand for my study,” says Robins. “I met with some of the top scientists in their field, in their respective countries and, in some cases, globally, with top producers in each country, as well as leading extension experts and consultants.” Robins expects his much-anticipated energetics-themed study to be ready for peer review and distribution soon. He mentions two themes: energy-dense perennial forages used as annuals and early development of marbling cells in calves.
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“The report will focus on several key areas as to the impact of incorporating energy-dense forages into key points in Canadian and, in particular, Prairie beef production systems,” Robins says. “Utilizing specific species of short-term perennial forages capable of high levels of metabolizable energy that are currently not often considered due to overwintering ability, is the core of the strategy being recommended in the report.” He says focusing on sugar and digestible fibre to evaluate their potential is key, and that data collected from experts around the world will demonstrate that the grazing of these forages has the potential to: • Provide several positive benefits to rumen digestive efficiency. • Decrease greenhouse gas emissions versus traditional grazing. • Lower the beef carbon footprint. • Improve soil structure and biology, in addition to sequestering carbon. • Induce programming of intra-muscular fat cells in suckling calves.
Clayton Robins (r), with son Quinn and father Brian, travelled to 11 countries as part of the Nuffield Scholarship program.
• Improve the healthiness and eating quality of forage-fed beef. Robins says his report will also address the potential for improved energetic efficiencies and the role of genomics in the strategy. The Canadian Prairies, he says, have an advantage over other regions regarding the potential for plants to accumulate high levels of water-soluble carbohydrates (sugars). “Longer days, cool evenings, and degree of solar intensity provide the basis for this opportunity,” says Robins. “High-sugar forages elicit beneficial shifts in rumen fatty acid profiles and microbial communities that mimic grain-feeding, without the same risk for acidosis. All I hope is that the report will motivate the right people to ask the right questions. And then, eventually, we will get the right answers.” n
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Get in line and move on “I call it my ‘big red swather,’” Brian Harper told a group of cattle producers visiting his farm near Brandon, Man., last August. Harper smiled when, as if on cue, 63,550 lbs. of his herd of Shaver Beefblend/Lincoln Red cattle started munching their way down one of his field’s narrow one-acre grazing paddocks. “Up to 2013, we had 16 plots that we moved the cattle around on. This allowed 45 to 60 days of rest for each of the plots to recover from the grazing until next rotation,” said Harper, who runs his forage-only, purebred operation Circle H Farms with his wife Sonja. “This year, we switched to the high-stock density system for grazing and are moving our herd among 128 one-acre plots within the old 16-paddock system, allowing 127 days rest for each plot.” Harper moves his herd from paddock to paddock using an automatic gate opener called a Batt latch, a solarpowered, self-contained unit that is set to open at a time and date that he chooses.
“The benefits to our herd, the grass, the soil and the environment have been substantially noticeable,” Harper said. “On the business side, we doubled the carrying capacity as we were only half done the pasture at the time of year when in past years we were generally through it already once. This would be the big factor for most producers as there is more return per acre.” Harper was joined by Neil Dennis, an experienced mob grazier from Wawota, Sask., who was brought in by organizers to help showcase the high-stock density grazing systems as a viable economic and environmental option for cattle producers. The tour of Harper’s mob-grazing system was funded by the federal government’s Commission of Environmental Cooperation (CEC) as part of an 18-month agreement with the Manitoba Forage and Grassland Association (MFGA). The aim is to implement and promote ranch-level beneficial management practices (BMPs) that improve environmental and economic sustainability of live-
Brian Harper says he’s doubled the carrying capacity of his pastures by using a high-stock density system.
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Switching to a high-stock density system with 128 paddocks instead of 16 By Duncan Morrison, Freelance writer
stock production. “The CEC have collaborated in protecting North America’s environment in the United States, Canada and Mexico through the North American Agreement on Environmental Cooperation,” said MFGA executive director Wanda McFadyen. She quarterbacked the larger agreement with CEC that has similar events planned in Saskatchewan and Alberta. “When CEC connected with us about Prairie forages and grasslands and the beef industry, we felt it was an excellent fit to showcase the environmental stewardship that producers such as the Harpers provide to Manitobans as well as their economic savvy as businesspeople in the cattle industry.”
Local partner
With the CEC agreement in place, MFGA turned to Manitoba Grazing Clubs, a long-time partner, to organize the event. Grazing club co-ordinator Michael Thiele suggested the Harpers Continued on page 16 Photo: Duncan Morrison
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Continued from page 15 — with Dennis in support — as excellent candidates to anchor the half-day tour. “These two producers are strong advocates for grazing systems and they are extremely well respected by other producers,” said Thiele, a contracted employee of Ducks Unlimited Canada (DUC). “The narrow width of the paddocks mean the cattle work it hard back and forth. What they don’t graze they stomp down, which enables the regeneration of forages during rest.” Thiele refers to the highstock density grazing system as “biological agriculture,” as he says the principles of biology are being applied to healthy, high-quality food production. He quickly lists off benefits such as soil health, range health, biodiversity, carbon capture and critical wildlife habitat that the narrow paddocks provide within the scheduled rotation. In addition to the paddock with Harper’s “big red swather,” the tour made three other stops to highlight the benefits of areas that were currently being rested or had been established with cicer milk vetch. Harper pointed out the excellent vegetation health, the high sugar content in the forage, and lack of bare ground spots above the soil. “Most pastures are high nutrients and low sugar,” said Dennis. “The healthier the soil and the healthier the plant, the higher the sugar content in the plant will be, and the more nutritious it will be for the cattle. Also, with the more nutrientdense plants, they are better able to withstand frost as they get started earlier and last longer.” The action below the sur face drew just as much of the tour’s attention as the visible action above. “Look at the soil armour,” Dennis said as he and Harper hovered over a fresh spade full of soil and grass. “A deep healthy root system like this really benefits soil erosion and is excellent for increasing the water-holding capacity of the soil so the water is not running off and increasing erosion or adding to floods.”
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Each plot now gets 127 days of rest, leading to more soil cover and a healthier root system.
Photo: Duncan Morrison
To see the video of Brian Harper’s system, visit www.manitobacooperator.ca/livestock/video-highdensity-grazing-for-cattle-at-circle-h/ The soil is where the Harpers have focused their attention as they pursue healthy, high-quality, nutrient-dense food. “We believe that ever ything we are and everything we eat has come from the soil either directly or indirectly,” said Brian Harper. “With this system, there is also the
benefit of improved soil health which may not seem an economic return in the short term. However, I believe that in the future as the soil health improves, there will be even more grass. As stock density goes up everything keeps getting better, but only if the proper rest period is allowed. Rest is the key!” n
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Sainfoin
a new legume for Ontario livestock producers Its non-bloating qualities make it a perfect companion to long-standing favourites, or it works well on its own By Ralph Pearce, production editor, Country Guide
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ention the term “forage legume” in Eastern Canada, and just about any producer will mention alfalfa or clover. Livestock producers can likely name off another 10 or 12 species, like birdsfoot trefoil, alsike, timothy, orchardgrass or meadow bromegrass. But few will mention sainfoin, well-known in Western Canada but a relative newcomer to Ontario and Quebec. It’s a perennial forage legume, typically taller than alfalfa up to a height of three feet. The plant has hollow stems with leaves that are divided and look similar to vetch leaves. It also has a deep and branched taproot. Sainfoin’s origin is unclear, although it’s known to have been cultivated in parts of Europe and Asia for several centuries. It was introduced to North America in the early 1900s, with early varieties from Europe displaying poor winter hardiness and low yields. It wasn’t until varieties were developed in Russia and Turkey that improved winter hardiness became part of the plant’s genetic makeup. Despite a 90 per cent yield index relative to alfalfa, tests at Winnipeg, Man., and Lacombe, Alta., have showed yields comparable or better than alfalfa. Growers in Western Canada have
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been the benefactors of breeding efforts by Surya Acharya at Agriculture and Agri-Food Canada in Lethbridge, Alta. His varieties include Mountainview, Nova, LRC 3900, LRC 3519 and LRC 3432. Acharya’s colleague, Tim McAllister, who specializes in ruminant nutrition and microbiology at the Lethbridge station, has also worked with sainfoin.
Moving east?
One of sainfoin’s vocal supporters in Eastern Canada is Tarlok Singh Sahota, director of research and business at Ontario’s Thunder Bay Agricultural Research Station (TBARS). Sahota planted his first trials in 2014, and says he will have a better handle on its particular attributes in the year to come. Yet he sees no reason why the legume can’t work as well in Eastern Canada as it does in the West, regardless of concerns over heat or humidity or soil types. “It should do well,” says Sahota. “I’ve seen it do well here at the research station, and I was happy with what growth I saw.” Some of the other positive attributes of sainfoin include its adaptability, digestibility and health/ nutrient benefits. There are also some reported agronomic advantages that make it a compelling supplement or
replacement for alfalfa. To start, sainfoin can be grown on its own or as a blend, and is suitable for hay, ensiling or for pasturing. “The one key difference between alfalfa and sainfoin is the hollow stem similar to clover,” says Sahota, noting that the plant retains its leaves longer than alfalfa. “When it’s hollow, you can harvest it at any stage and you get consistent levels of protein. That’s why we like the hollow stem — because it remains soft; it will not gather much fibre as compared to alfalfa, which has a solid stem.”
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According to the research, the condensed tannins in sainfoin protect the protein and enable it to pass through the rumen and into the lower gut, where more of the protein is digested and retained. Research has also shown sainfoin has lower acid detergent fibre (ADF) and neutral detergent fibre (NDF) levels compared to alfalfa. If there’s a drawback to its palatability, it’s that sainfoin is also preferred by wildlife as much as by cattle, horses, sheep or goats.
Weeds, pests and diseases
As a relative newcomer, there hasn’t been a herbicide registered for sainfoin yet. It does, however, show a natural resistance to glyphosate, and its growth is competitive enough in its establishment year that it can easily provide a weed-free stand the following year. It’s also immune to alfalfa weevil and, to date, there are no mentions of disease issues in the crop. Sahota says the field trial at TBARS will be closely monitored in 2015.
“You can harvest (sainfoin) at any stage and you get consistent levels of protein.” Tarlok Singh Sahota, Thunder Bay Agricultural Research Station
Cutting and grazing
Mountainview, is a newer high-yielding, low-bloat variety, but seed will not be widely available until 2016. Photo:AAFC
It’s tasty
Sainfoin has a higher “voluntary intake level,” which means it’s preferred by ruminants. Some research puts it as much as 25 per cent higher than other forage sources. Tests have shown weight gain at more than 400 grams per day in sheep. In cattle, feeding alfalfa plus sainfoin (without a specific percentage mentioned) resulted in weight gain of 1.2 kilograms per day.
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The general accepted practice is that sainfoin can only be cut once, as it doesn’t regrow as vigorously after a first cut as alfalfa. On the other hand, it also starts growing earlier and faster in the spring than other legumes, often blooming up to two weeks ahead of alfalfa. If it’s to be cut for hay, the literature recommends it be done at 50 to 100 per cent bloom or it can be grazed at bud or early bloom to encourage the best regrowth. In spite of what the earlier research indicates, Sahota plans to test those “standards” in 2015. “They say you can take two cuts, but sometimes it won’t give a good yield on the second cut,” he says. “But when we are growing it here, we’ll be planning on two cuts, just like with alfalfa.” One of the more attractive benefits of sainfoin, adds Sahota, is its nonbloating property. In blends of just 15 to 25 per cent with alfalfa, sainfoin can overcome most bloat in livestock.
Sainfoin is gaining popularity, not just with livestock and their producers but with bees as well, with sainfoin honey considered to be of the finest quality.
Photo: rgbstock
Based on work done in Western Canada, it’s advised that seeding be done early in the spring, at eight to 10 seeds per foot-row at 1/4- to 3/4-inch depth in soils that are firm and moist. In the fall, the plants have a rosette appearance and will remain green under a snow cover in winter, exhibiting a high tolerance to frost in either fall or spring. Although it’s said to do well on deep, well-drained soils (pH 6.2 and up), sainfoin also performs adequately in shallow or gravelly soils, which is another property that sets it apart from other forage legumes. Foundation seed was lost in 2014 for Mountainview, the highest-yielding of the four varieties bred at AAFC Lethbridge. It’s projected that it won’t be available in large commercial supply until 2016. Sahota says that Nova and the three other Lethbridge varieties are well suited and available for 2015 and beyond. n Forage & Grassland Guide
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Sliverbend Ranch in western Manitoba had been subject to severe erosion before Brian and Karen Greaves took it over in 1993.
Silverbend Ranch shines again Forages and livestock restore health to a badly eroded farm in Manitoba
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he moon shines on the bend in the meandering Assiniboine River and reflects a shimmering silver glimmer that illuminates the lush riverside and well up the gently sloped hill toward the farmhouse. Thus the name Silverbend Ranch, or so the story goes. But while the moon may glisten at night, things weren’t always so shiny during the day on the long-time family farm operation located north of Miniota, Man. In fact, had it not been for urgent stop-gap measures, the sandy soil of Silverbend Ranch might have blown away to the point of no return. “The ranch was being run by Karen’s two uncles who had run the operations for some time,” says Brian Greaves, who came to Canada in 1993 with Karen Hill, a Canadian he met while she was teaching near his home in New Zealand. “The land was so burnt out. They were advancing in their years and were struggling to make things work. They were going to sell it but it was so burnt out and degraded from the years of traditional agricultural practices and cropping that didn’t work on this soil. Good topsoil was being blown away. It was the poorest land in the municipality.”
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Forage & Grassland Guide
Greaves credits Dave Hill, Karen’s father and a former provincial ag rep in Dauphin, for taking the largest step toward saving the ranch in 1988 by putting large portions of it into alfalfa and hay and halting the worst soil erosion. He and Karen were offered the opportunity of running Silverbend Ranch in 1993. They jumped at the chance. “When we arrived, there were windblown ridgelines that we needed to use the rural municipality’s grader to move. Still, some ridges were impossible; they were pretty much gravel,” he recalls. “But after Karen’s dad started the alfalfa stand, things turned around. I was coming from a system in New Zealand where we pastured year-round. We took that concept and we saved the land via a rotational grazing system that we designed for the ranch. In order to have healthy livestock, we needed to have healthy pasture.”
Sheep/cattle mix
Besides his understanding of healthy pastures, Greaves also brought a businessman’s grasp of the value of sheep to both the farm operations and the bank account.
By Duncan Morrison, freelance writer
Brian Greaves takes a break during a hard day of shearing, a skill he learned in his native New Zealand.
Photo: Daniel Winters
Fast-forward to 2015, and the mix of sheep, cattle and a dedication to conservation practices over the past two plus decades are showing their worth. “We currently run 120 cows and 400 ewes,” says Greaves. “When we came over, I was used to sheep. Sheep are cheaper and easier and when it
2015
comes to multi-species grazing, sheep clean up the lower-quality grass species and they are not competing. This allows the plant species that the cattle like to graze to get stronger which improves production.” Sheep are browsers and cattle are grazers and therefore sheep need an effective rotational grazing system as they are more prone to bloat. Coyotes, bears and eagles have prompted Greaves to implement a guard dog system to deter the predation. But sheep have helped the bottom line. “Before the cattle industry boomed over the last two or three years, sheep were bringing more annual income to our operations,” he says. “There’s a ratio I use of five sheep to one cow. They eat the same amount of food and cost the same amount of money.” Greaves and Hill were awarded the 2008-09 Farm Family of the Year by the Manitoba Conservation Districts Association. Since then, Greaves has intensified the conservation aspects of Silverbend Ranch’s operations. “Our pasture rotation is good for the soil,” Greaves says, noting his system’s success with crested wheatgrass. “We have replanted tree lines for shade, our dugouts are fenced and we use watering systems away from them to maintain water quality for the livestock. We’ve donated a conservation easement on our property that includes sloughs and restored wetlands and walking trails with public access.” During the day, besides her work on the ranch, Hill works for Agriculture in the Classroom. The willingness to mentor and use Silverbend Ranch as an example to others is something Greaves obviously takes pride in. Ryan Canart is the manager for the Upper Assiniboine Conservation District that nominated Silverbend Ranch for the conservation honour in 2008 and continues to work closely with Hill and Greaves. They’re basically doing everything from a conservation perspective,” says Canart. “Shelterbelts, restoring wetlands, watering systems, donating land for an easement, native grasses, managing soil and pasture and on and on. They are a farm family that go above and beyond.” n
2015
A ‘living library’ for forage and beef producers Foragebeef.ca has had 200 research papers added in the past year
F
Alberta Agriculture Agri-News
oragebeef.ca contains the latest information on forage and beef research for producers in Canada and the northern United States. “The site summarizes research for farmers and ranchers,” says Ken Ziegler, beef/forage specialist with Alberta Agriculture and Rural Development. “It’s a unique approach to developing and organizing North American research information for the Canadian forage and beef cattle industry.” As an example, extending the grazing season is a popular topic, and foragebeef.ca is well equipped to provide visitors with various folders on the subject. “The grazing season can be extended in different ways at different times of the feeding season either at the beginning of the season using well-established forage regrowth that is grazed into the Christmas season, during the winter months using swath grazing of annuals like barley, oats, or triticale, by saving carryover forage over from the previous summer as fine youthful regrowth that the nursing cows or backgrounded yearlings can use as soon as the snow has melted off. Foragebeef.ca also offers folders on other strategies such as using brassicas or using corn,” he said. Foragebeef.ca is updated regularly as fact sheets and research papers are added to the folders on the website. Approximately 200 research papers have been added to the website over the past year. “The site is a living library for research and extension information that is useful to Canadian beef and forage producers,” Ziegler said. The website provides three levels of information. The top level is “cut to the core” information on a particular topic. Called “Knowledge Nuggets” this level provides the most important pieces of understanding on that topic. The next level is for the reader who wants more information about that topic. Links are provided to the best related information, usually in fact-sheet format. The objective is to select the most comprehensive and applicable information for Canadian and northern U.S. agriculture. The third level is for people who want research-related information. This level focuses on relevant scientific review papers, research abstracts, research papers, major publications and links to research communities throughout Canada and the world. The site features in-depth information on forage production, silage management, forage seed production, beef cow-calf management, animal health issues, grazing management, and range management in addition to many other topics. “This is a living website and news items, research results and summaries will continually be added to the site,” added Ziegler. “With these knowledge summaries, fact sheets, and research reviews, Foragebeef.ca is the gateway to the future for forage and beef information for the forage and cow-calf industry.” n
Forage & Grassland Guide
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Is your pasture ready to graze? Start counting leaves Grazing a pasture for six weeks costs about half of the annual production potential for your forages By Jennifer Blair
D
eciding when to graze a pasture has nothing to do with plant height, says an Idahobased grazing expert. “Height doesn’t tell us ver y much,” Jim Gerrish said at a Foothills Forage and Grazing tour near Acme, Alta., last summer. “What we really want to know is, physiologically, is a plant ready to be grazed?” And leaf stage is the best indicator of that, he said. “What really determines if a plant is ready to be grazed is the carbohydrate balance in that plant,” he said. “We know if we have a lot of leaves, we’re capturing solar energy and converting it to sugar. “The question becomes at what point is energy flowing more from the top of the plant to the bottom, or from the bottom to the top? Leaf stage is a good clue for that.” Grass growth happens in three phases, he said. In Phase 1, there’s limited solar energy capture, so growth is slow. As leaf area expands and more solar energy is captured, the growth rate accelerates, and the plant enters Phase 2. In Phase 3, the plants mature, and growth slows down. The two- to three-leaf stage is “the high side of Phase 1,” while the three- to four-leaf stage is the “low side of Phase 2,” said Gerrish. “Ideally, we would like to be grazing at four or five leaves, but is it OK to graze at 2-1/2 to 3-1/2? It depends on what you’re going to do tomorrow,” he said. In a study conducted in Idaho, researchers found that when they removed the cattle from the pasture after one week, the total production for
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Forage & Grassland Guide
the year was not reduced. Grazing for two weeks resulted in a 10 to 20 per cent loss in annual production potential, while grazing for four weeks cost 20 to 40 per cent in production potential and six weeks cost 40 to 60 per cent. “Going out on high Phase 1 or low Phase 2 grass and parking for six weeks costs you half the production potential of the year,” said Gerrish. “But you can go out early in a rotational system, take a bite, and leave it, and it’s going to be OK. If you allow it next time to recover to four or five leaves, you haven’t hurt a thing.” If a random sampling of 10 tillers is at the two-leaf stage, Gerrish recommends waiting to graze until they hit the three-leaf stage. “If they’re at a three-leaf average, you can go out there and get started, but take that bite, get off, and next time allow it to get to four-, five-, or six-leaf recovered stage,” he said. But waiting until every pasture is at the four- or five-leaf stage isn’t feasible for most operations, he said. “We do have to get started earlier than the optimum to create the type of pasture that we want later in the season.”
Recovery period
The length of the recovery periods depends, again, on leaf stage. “For recovery, we’re really looking at growing more leaves,” said Gerrish. Early in the grazing cycle, plants might be at the two-leaf stage, but optimally, plants should be at the five-leaf stage before they’re grazed again. And how long it takes to grow the necessary number of leaves — in this case, three more leaves — will dictate how long the recovery period needs to last. “In very good growing condi-
Grazing consultant Jim Gerrish says that leaf stage, not plant height, is the best indicator of when a pasture is ready to graze. Photo: Jennifer Blair
“Ideally, we would like to be grazing at four or five leaves, but is it OK to graze at 2-1/2 to 3-1/2? It depends on what you’re going to do tomorrow.” Jim Gerrish
tions… it takes about five to seven days to grow a leaf,” he said. “In those perfect growing conditions, how long does the recovery period need to be? Fifteen to 21 days, if you multiply five and seven by three.” In poorer growing conditions, however, it may take the plant 10 to 15 days — or even longer — to grow a new leaf, and the recovery period needs to lengthen accordingly. “That is what is determining how long your recovery period needs to be — how long does it take it to put out a single new leaf? Once again, we’re back to counting leaves.” Gerrish admitted it “almost sounds nerdy” to pick tillers and count leaves. “But if you’re at the point where you’re ready to take your grazing management up to the next level of fine-tuning management, I think that becomes an essential part of the program.” n jennifer.blair@fbcpublishing.com
2015
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Finance metrics you may not have thought of — diagnosing operating inefficiency By Larry Martin and Heather Broughton
ur last column introduced the concept of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and used it to define Operating Efficiency Ratio, (EBITDA/Total Revenue). With some exceptions, financially successful farms have Operating Efficiency Ratios above 35 per cent, i.e. with at least 35 cents left from every dollar of sales after paying all non-capital operating expenses.
Using EBITDA in investment strategy One aspect of financial strategy is your plan for growth based on how operating income (EBITDA) is invested. Many growth-oriented operations have a rule such as, after paying taxes, 40 per cent goes to new investment, 35 per cent goes to service debt and 25 per cent is to pay owners. On such a farm, EBITDA is on a growth path because it is using 75 per cent of its operating income for new investment or debt service. By contrast, a farm that is reaching business maturity might have a rule putting more emphasis on income to owners and less on capital investment. The important thing is to have a rule because it means you have a plan.
Using operating efficiency to diagnose operating problems An interesting question that often arises is, if operating efficiency is less than 35 per cent, what’s the reason? What is causing it to be lower, and what needs to be done to fix it? This gives rise to a powerful application of the standardized operating statement and its attendant benchmark ratios.
Below we reproduce the standardized operating statement from our most recent article: Gross Operating Revenue (-) Crop and Livestock Expenses (=) Gross Margin (-) Labour, Machine Operating Expenses, Land Rent (=) Contribution Margin (-) Management, Office and Overhead Expenses (=) EBITDA (-) Depreciation/Amortization (=) EBIT (-) Interest (=) Earnings Before Taxes (-) Taxes (=) Earnings After Taxes (+/-) Non-Core Income and Expenses (=) Net Income Again, operating efficiency is the ratio EBITDA/ Gross Operating Revenue. If one looks above the EBITDA line, it is apparent that three sets of costs are deducted from revenue to get to it: crop and livestock expenses; labour, machine operating, land rent; and management, office and overhead expenses. There are also benchmarks for each category: crop and livestock expenses should be no more than 35 per cent of revenue; labour, machine operating, and land rent should be 15 to 20 per cent; management, office and overhead expenses should be no more than 10 to 15 per cent. By definition, this means that Gross Margin should be 65 per cent or more of sales and Contribution Margin should be 45 to 50 per cent of sales. Let’s assume that a farm has Operating Efficiency of 22 per cent, which is the Canadian average. What is keeping it from achieving 35 per cent? Why isn’t it generating more cash? One way to diagnose this is to look at the other ratios. Assume the farm’s Gross Margin ratio is 57 per cent and its Contribution Margin is 45 per cent. What is this telling us? Continued on page 30
March 3, 2015
country-guide.ca 29
A M E - ma n a g eme n t
Continued from page 29 First, because the difference between Gross Margin and Contribution Margin is only 12 per cent, this farm is doing a great job of managing operating costs in terms of labour and other operating costs. 15 to 20 per cent is the standard: this farm is beating it. However, there is an issue with its Gross Margin. Its production expenses are 43 per cent of total revenue but the benchmark says they should be 35 per cent or less. The manager’s focus needs to be on production efficiency and/or marketing: the farm is not getting enough for what it’s selling, its conversion of inputs into products is underperforming and/or it is paying too much for inputs. Following back to the detail will probably pinpoint the exact problem. Another farm with 22 per cent Operating Efficiency has 70 per cent Gross Margin and 33 per cent Contribution Margin. This farm has different problems. Crop and livestock costs are 30 per cent of revenue, better than the standard. But its operating costs are 37 per cent, far worse than the standard 15 to 20 per cent. The immediate focus for this operation will be on some combination of labour costs, other operating costs, and/or land
rents. Also, when this category is this far off base, it may be that the farm is expensing equipment and machinery that should be depreciated. This makes operating performance worse than it should, and could have major repercussions for liquidity. We find using this financial information and the benchmarks to be very powerful in helping managers manage well, and in undertaking realistic strategic and operating plans. The space available here prevents considerable nuance about application, but the examples are realistic given our experience with a number of farms. While it is useful and important to evaluate your income statement and ratios each year, assessing that particular fiscal year, there is significant importance in also understanding and watching the trends and comparisons over a period of years and understanding why the costs and expenses in terms of percentages deviate from one year to another. Seeing the trend can identify successes or problems over time. CG Larry Martin is co-owner and lead instructor in AME’s management training courses. Heather Broughton is co-owner and president of AME.
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30 country-guide.ca
March 3, 2015
business
Better family meetings If your family meetings aren’t going as well as you hoped, check out these tried-and-tested strategies s farms get bigger, meetings become increasingly important. Without effective communication, there is conflict, anger, a lack of vision and a loss of efficiency, says Chilliwack, B.C. farm adviser Jim Soldan. Meetings provide an opportunity for farm team members to get together to plan and communicate essential information, discuss issues, identify farm priorities and make decisions. Yet too many farms focus only on production, stresses Soldan. They’ll spend 95 per cent of their time talking about production versus five per cent on the team. By contrast, Soldan says 50 per cent of the meeting time should be focused on the team, since it’s the farm’s human resources that drive production. Kristi Nilen-Burns, one of the owners at Windy Poplars Farm, a cattle and grain farm in Wynyard, Sask., says regular meetings have resulted in more effective communication among their four owner-operators. “With a large farm it’s hard to keep track of what everyone is doing,” she says. Their system has evolved over time, she says. They have three types of meetings. Every morning there are team meetings for employees, monthly meetings for the five people with managerial positions, and quarterly meetings that also include all the spouses. Nilen-Burns explains that this way people are able to work in their areas of strength and then report back to the group. If your meetings aren’t going well, Soldan says you may need to go back to basics. It helps if everyone knows the benefits of meeting. “Everyone needs to see the importance of meetings and therefore have a desire, and a willingness to participate. And they must know their responsibilities towards making meetings successful,” says Soldan. Several essential components should be in place to help ensure time spent in meeting is as productive as possible. These include having an agenda, minutes, orderly conduct and participation by all. By establishing a Code of Conduct (a framework for how everyone will March 3, 2015
behave) family members will be more willing to participate because they can speak freely when they know there is a system in place to keep meetings orderly. Reg Shandro, a farm adviser in Lacombe, Alta. agrees it’s essential that everyone behave in a professional manner. They need to be respectful of others and focus on listening to what the other parties are saying, he says. If meetings aren’t going well, the leadership (or lack of leadership) might be the problem. People need to respect the chairperson, says Soldan. The chair or moderator needs to keep the meeting on track and enforce consequences when people are disruptive. They need to start the meeting on time and have it end on time, and they have to keep people from going off topic.
Farm families that have meetings have healthier work relationships, higher efficiency, and better bottom-line results The chair should put thought into how meetings will be held. For example, having a business meeting in the lunchroom where employees are coming and going means there will be interruptions, points out Kevin Kirkwood, a consultant with Backswath Management in Melville, Sask. who provides training to farmers on conducting effective meetings. Shandro agrees. “Choose an environment that allows everyone to be comfortable with minimal distractions.” And, he adds, “all phones should be turned off so everyone can focus on the agenda.” One mistake Kirkwood sees farm families make is to have their meetings informally over the Sunday dinner. These meetings aren’t effective because they aren’t run like a proper meeting, he says. There needs to be an agenda so that people can come prepared for the meeting. Too often only one person does all the
By Helen Lammers-Helps
talking at this type of meeting, adds Kirkwood who feels it is better to separate the business meeting from family time. Besides, says Kirkwood, “Your grandson would rather you take an interest in his hockey at Sunday supper.” An agenda should be circulated in advance of the meeting and participants should be encouraged to submit additional agenda items in advance of the meeting, the experts agree. Nilen-Burns says at the beginning of their meeting, they set the date for the next meeting. That way everyone knows that any topics that aren’t concluded will be carried over to the next meeting. Setting the date for the next meeting ensures everyone is able to make it. People need to come prepared and they should stay for the entire meeting, says Soldan. If not, they need to be held accountable for their actions, he adds. For meaningful conversation to occur, all attendees need to participate in order to get everyone’s perspectives heard and understood, says Shandro. Before calling a meeting, the purpose and objectives for the meeting should be clear. Kirkwood says there are three main types of meetings. Employee meetings are for everyone and should be held at least twice per year, i.e. before the busy spring and fall seasons. Then there should be business meetings for those involved in the farm who have decision-making responsibilities. And finally, family meetings including all of the family, not just the members involved in the farm, should be held annually to keep all family members abreast of what’s happening. Both Kirkwood and Soldan agree it’s crucial to take minutes or notes at the meetings. Items requiring action need to be highlighted, and it needs to be clear who is going to do what, and by what date. There should also be followup to ensure action items are completed. And, says Kirkwood and Soldan, be sure that when things are done, this is communicated so that everyone can see the value that meetings can generate. CG country-guide.ca 31
business
The direct option At first, direct marketing gave Dylan and Colleen Biggs hope to save the farm. Now it’s driving robust expansion By Steven Biggs, CG Contributing Editor hey told me I would fail,” says Colleen Biggs, remembering the phone call she made soon after taking over sales and marketing on the home ranch. It was 1995, and with no room to cut costs any deeper, she had called the Alberta Ag Ministry to find out more about direct marketing, thinking their way forward had to be to add value. Conventional wisdom said it couldn’t work, especially in a province dominated by a powerhouse commercial beef sector. But what other choice was there? Biggs had already ruled out working off farm to help keep their dream afloat. With three young children, the minimum-wage jobs nearby wouldn’t cover childcare, and a better-paying job in her field would mean working over three hours away in Calgary.
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“In the beginning I had an old half-ton truck with two freezers and a generator in the back, and three car seats in the cab,” Biggs recalls. While her husband, Dylan, managed his family’s ranch, she took the girls with her on the road selling meat. I’m glad to have finally had a chance to talk to Biggs, who by the way is no relation to me. She had had to reschedule our first interview because of unplanned tractor duties. After almost 20 years, it seems, the ranch still keeps her on her toes. “Unfortunately that is the nature of the family farm. If one person can’t make it for work, someone else (usually me) gets pulled into the tractor to help,” she says. Biggs doesn’t seem too worried by the lastminute change, though. It’s because she seeks out change that she’s still on the ranch.
march 3, 2015
business
TK Ranch TK Ranch in the northern fescue grasslands of east-central Alberta was founded by Dylan’s grandparents in the 1950s. Colleen met Dylan in 1990 at one of his talks on holistic management. She had been raised in Edmonton but had spent many summers on her aunt’s farm and her family was no stranger to agriculture. Today, she and Dylan own the ranch that they made into the first registered ethical farm in Western Canada, and the first registered ethical beef operation in the country. Everything they sell is under their TK Ranch Ethical By Nature brand, and even the local Hutterite Colony that grows poultry specifically for them, and the three beef producers who supply weaned calves had to become Animal Welfare Approved (www.animalwelfareapproved.com). On 9,300 acres today they have some 1,200 cattle, and they also raise lamb, hogs, and a few laying hens. “We have very clearly differentiated roles within our ranching enterprise,” Biggs says. “My husband manages all of our animals right to the kill.” After slaughter, she looks after everything until the meat reaches consumers. Three of their five daughters are on the farm at the moment. Jocelyn, the eldest, assists with the meat side of the business. Their second daughter, Julia, helps Dylan on the ranch, and while their third and fourth daughters (Maria and Tiffany) are away at school, Hannah, the youngest, who is in Grade 11, looks after the laying hens. Their online store allows customers to buy bulk (halves, quarters, and eighths) or individual cuts, and the orders are coming in. Biggs has 140 retail and consumer orders to deliver to Edmonton — 350 km away — the weekend following our interview. On alternate weekends, she delivers to Calgary, 300 km away.
march 3, 2015
Consumers want to connect to their family, their land, and their shared values The first customers That first year of direct marketing, Biggs started calling on restaurants. “Cold calling was kind of a reality then,” she says, talking about how she connected with chefs. Because she was selling dry-aged meat (as opposed to the regular “wet-aged”), her calls piqued the interest of many chefs. The problem was getting them to make a change and buy her product. So she allowed six chefs to order cuts for free, on the understanding they would compare TK’s dry-aged against their best conventional suppliers. Those comparisons resulted in her first customers. Word soon spread within the small community of high-end chefs in the province. “We had so many chefs calling us,” she remembers. Pleased with her success selling to chefs, Biggs now had another problem: Most chefs want only high-end cuts. Needing to sell the other cuts — and hoping to build a customer base outside of the restaurant industry — Biggs visited health food stores. “They quickly showed me the door,” she notes with a laugh. “They weren’t interested in selling any ‘dead animal’ protein in their stores.” That left her with the 3,000 pounds of ground beef. “I had it all stored on the front deck of my house. Spring was coming and
I was starting to get a little nervous,” she says. She continued calling on health food stores, and with effort she found buyers. The ground beef was gone by spring thaw. “I’m quite persistent,” she says, and then she tells me what might be her most important message for farmers hoping to get into direct marketing. It takes attitude, not just aptitude, Biggs says. “You have to be very sure of what you’re doing and be very determined, and not let someone closing the door on you dampen your enthusiasm to go back and talk to them again.” Talking to customers, Biggs is articulate and warm over the phone, but she is no newcomer to communications. She knows how to be clear. She joined the Canadian military while still in her teens, and rose to become one of the first women to teach in battle school.
Their own brand Colleen and Dylan branded their meat business Ethical By Nature, based on their strong personal beliefs about animal welfare, but the branding decision wasn’t as simple as it might sound, Biggs says. “First you have to figure out who you are and where you’re going.” They thought deeply about their farm and their product, and how they could be differentiated from other Continued on page 34 country-guide.ca 33
business Continued from page 33 farms and other product in the industry. “We were very meticulous to figure out what we were marketing,” she says. “I could see that it wasn’t good enough to sell a product with just one differentiating feature,” she says. Thinking about what they do, where they live, and what might make them and their products interesting to consumers, she realized that the story of the grasslands was important. “We have this beautiful piece of land that has most of the species at risk for Alberta located on it. Lots of consumers are very concerned about species loss,” she says, listing species such as loggerhead shrikes and burrowing owls. It was a case of telling consumers the story of shared values. “When you buy TK Ranch products, you’re not just buying a package of ground beef. You’re buying the fact that we’ve taken care of that animal from birth to slaughter in a way that doesn’t confine it in a feedlot and is using low-stress handling techniques and ethical practices,” she explains. “I’m also taking care of this endangered ecosystem that we’re raising these animals on.”
Market awareness “I am constantly monitoring our inventory and uptake,” says Biggs, adding, “Last year I couldn’t keep ground beef in stock for love nor money.” It was a good thing, but it left her with unsold high-end cuts in the freezer — and they’re too valuable to grind. Her solution was to raise prices on the ground beef to balance sales with those of other cuts. “Part of the marketing process is figuring out who your target market is,” says Biggs. The toll-free line, 888-TKRanch, has helped her know her target market. (Today, the website has largely replaced the telephone line as the conduit for inquiries.) “Our toll-free number allowed us to see emerging trends in the marketplace,” she says as she talks about consumer interest in antibiotic use, organics, grass feeding, and animal welfare.
Challenges When 9/11 occurred, Biggs’ sales to high-end restaurants came to a screeching halt. “That was the biggest bump we hit in the beginning,” she says, talking about thousands of room cancellations in the Calgary-Banff corridor. Room cancellations meant cancelled restaurant orders too. “I didn’t anticipate the fallout,” she concedes. To make matters worse, by this time she 34 country-guide.ca
was selling pork, lamb, chicken, yogurt, and cheese contracted from other producers. She bought the products on contract, but it took months to move that entire inventory. “We got through it and were able to sell all of the products,” she says. The volatility of the restaurant sector was an eye-opener that made her shy of restaurants. With a growing retail network, she dropped them. “I never went back,” she says. Another challenge was the BSE crisis. “All of a sudden our cattle were worth nothing, except for those that we were marketing through our meat business,” she says. As commodity beef prices collapsed, more farmers started direct marketing meat, shrinking profits in that part of the business too. This time around, it was an off-farm income that kept them afloat. Since 1995, Dylan had taught low-stress livestock handling across Canada and the northern U.S. “That is how we survived the post-BSE year,” she says.
The business of direct marketing When I ask Biggs where she learned business skills, she replies, “For me it was a huge learning curve.” To understand how to price meat, she set up a spreadsheet listing all of the different muscle groups in the animal, tracking the percentage weight of each. This was a critical step, she says, in knowing how to price products. The other key aspect of the business of direct marketing is generating return customers. “It’s one thing to sell a grass-finished animal, it’s another thing to sell one that people will buy twice,” she says. If custom-
ers don’t have a very good eating experience with grass-fed beef, they won’t return. And that’s not an uncommon thing, she says, because grass-fed animals are slower than feedlot-raised animals to develop intramuscular marbling. Slaughtered too soon, they can be gamey and tough. Biggs feels success with direct marketing requires listening to consumers. She says producers are often afraid consumers will tell them how to raise their animals. For her, that discussion is an opportunity. “If people can be proactive and listen to what consumers want and meet those needs, there is a tremendous opportunity,” she says.
Mortgaging the farm With the business doing well, they are taking a giant step. “We have mortgaged the ranch and everything we own to build our own on-farm abattoir this spring,” says Biggs. They are also building a cutting-processing facility near Calgary, where it will be easier to hire help. “We start construction within a week or so,” she says. Biggs stops to reflect on the high price of commodity beef today. She could do well selling to the conventional market. Raising her voice, she says, “What goes up will come down.” She’s not interested in the roller-coaster price ride. Business is good. They are hiring a ranch manager. “Our meat business has grown exponentially the last five years,” says Biggs. All of their animals (except any treated with antibiotics, on average about two per cent) are for direct marketing. Far from a failure, direct marketing has allowed her to stay on the farm with no off-farm job. Right in Alberta beef country. CG march 3, 2015
CHRISTIAN FARMERS FEDERATION OF ONTARIO 642 Woolwich St. • Guelph, ON • N1H 3Y2 Voice: (519) 837-1620 Fax: (519) 824-1835 Email: cffomail@christianfarmers.org Web site: www.christianfarmers.org
CFFO Introduces its ‘Policy Tour’
T
he Christian Farmers Federation of Ontario (CFFO) is one of the three accredited farm organizations representing farmers in Ontario through which farmers are able to obtain their FBR number. The members of the CFFO come from all types of commodities in the agricultural industry, allowing the federation to be involved in all aspects of the industry, including food processing and environmental issues. The CFFO has 21 districts across the province, each hosting an annual general meeting, usually during the winter season. In 2015 we will include in these district annual meetings more time to discuss federation policy so that more of our members can have input into policy development. We are calling this our “CFFO Policy Tour”.
“Don’t give up, look up” The Christian Farmers Federation of Ontario is one of two accredited General Farm Organizations in Ontario. The organization is focused on the long-term issues facing the sector, and is supported by 4000 farmers in the province. Learn more about us at www.christianfarmers.org
This tour will allow grassroots participation and input from a broader range of farmers from all geographical areas of the province, providing a fair representation of the views of all of agriculture for our policy development. These district meetings are a great opportunity to share valuable information as well as for members to raise local concerns. We want to invite others to these meetings as well. Check the CFFO website, www.christianfarmers.org
A general farm organization that is rooted in faith and guided by values
under upcoming events to see when and where the meeting will be held in your area. Policy development has been the mainstay of the organization for the past 60 years and we continue to work hard on behalf of our members to work with government for a sustainable agricultural industry in Ontario. Our goal is to allow all our grassroots members the opportunity to contribute in the process of our policy development. There is much wisdom in many minds working together.
• 22 District Associations Across Ontario • Supporting our members since 1954 • A Professional Organization of Entrepreneurial Farming Families
www.christianfarmers.org
A professional organization of entrepreneurial farming families
business
Will value adding work for you? This first in our four-part series on value adding for farmers starts with the most important question of all By Helen Lammers-Helps
o you think you have a great idea for a value-added business on your farm. Before you even begin to evaluate your idea to see if it will fly, however, it’s a good idea to ask the even more basic question: Is this kind of business venture a good fit for you and your family? First of all, what do we mean by value adding? A general definition is that value adding refers to any product that is developed beyond the commodity stage. This includes everything from selling produce direct to the customer to raising heritage pork, producing a unique soybean or canola oil, opening your farm up for agri-tourism, creating your own brand of dog food… the list is endless. Consumer interest seems endless too. Estimates put the number of Ontarians who prefer to buy locally grown food at 79 per cent, for example, and other provinces are posting similar numbers. The goal, of course, is to generate income, perhaps because you’re trying to find additional income during the overlap years when there are multiple generations on the farm, or because it seems to you to make sense to intensify the income you get out of your current property rather than expand at today’s land prices, or for any of a number of other reasons. It turns out, however, that if you’re only in it for the money, it’s tougher to succeed. That’s not to deny the money potential. In his book The Omnivore’s Dilemma, Michael Pollan estimates that, on average, direct and local sales allow farmers to take home as much as 94 per cent of the selling price, rather than share it with grocers, truckers, processors, and all the others. But when you talk to successful value-adders, they rarely start by wanting to discuss dollars. Many cite being able to connect with consumers as one of the best parts of running a value-added business. For instance, Jim Eby who processes the milk from his Waterloo, Ont. Guernsey herd and sells it in glass bottles says the best thing about his business is the feedback he gets from customers. Many people tell him they really appreciate the quality, flavour and digestibility of his Guernsey milk. Other reasons farmers choose to start valueadded businesses include increasing employment 36 country-guide.ca
opportunities on the farm, improving cash flow by creating off-season revenue, feeding their entrepreneurial and creative spirit, spreading the risk by having more than one product and having more control over the value chain. Despite all of the economic reasons for getting into a value-added business, all of the farmers and experts interviewed for this series agree on one thing: going the value-added route isn’t a good idea if you aren’t passionate about it. Of course, there are lots of different reasons why consumers buy from farm value-adders too. Moren Levesque, CPA Ontario chair of international entrepreneurship at York University’s Schulich School of Business says there are people who want to buy local so they know that their food didn’t come from China. “They are willing to pay a premium for it, but farmers must be genuine,” she says. Eby agrees. “Being friendly and transparent with your customer is a must.” That’s also the view from Cambridge asparagus grower, Tim Barrie, who sells several products made from his asparagus. “That’s part of what the customer is paying for,” Barrie says. By contrast, for some people, having to deal with customers is a good reason not to get into a value-added business. Be honest with yourself. Are you a people person? Some consumers can be very demanding. Are you prepared and equipped for customer service? That leads to a list of tough questions for would-be value-adders, because it’s important to recognize that the demand for customer service isn’t always something you can control as easily as you might like. If you’re thinking of opening an on-farm store or agri-tourism venture, are you willing to have people come to your farm? (This can also increase your liability risk and may require additional insurance coverage.) Plus, if you’re selling food products direct to the consumer, food safety can also be an issue. There are bound to be many regulations and there is the potential of increased risk. Are you prepared to deal with inspectors and paperwork? While creating a job for a family member or addiMarch 3, 2015
business
tional work for existing employees may be a benefit, if you have to hire new employees this could be a drawback. When hiring outside the family, employee safety training and additional paperwork will be required. Many farmers also complain that it can be difficult to find reliable employees with the necessary dedication. Not the least of your concerns will be the additional financial investment needed to get your valueadded processing business up and running. Will you contract out the processing, or will you need to build to accommodate processing and retail activities? If you contract it out, can you get the consistency and quality that you need? If you do it on farm, will you be spreading your management ability too thin? When Bonnie den Haan, owner of Sheldon Creek Dairy near Alliston, Ont. first learned that the provincial marketing board was making it easier for farmers to process and sell dairy products made from their own milk, she envisioned just a small dairy plant that might cost a few hundred thousand dollars. Once she realized what would be involved in meeting the new regulations she realized it might be twice that or more. Not only will a financial investment be required, there will also be a substantial time commitment to get your business off the ground. “We all work like dogs,” says Marianne den Haan, who handles marketing and schedules deliveries for the family’s dairy business. It’s also important to understand your own strengths and weaknesses. What is your tolerance for risk? Will you need to hire someone with expertise in marketing, packaging, human resources or financial management? Can you manage the logistics of running the expanded operation including making and scheduling deliveries? Are you an innovator?
Cindy Wilhelm, co-owner of Dragonfly Garden Farms which sells 130 products from their farm in Chatsworth, Ont. says it’s important to be a leader. “Don’t just do what other farmers are doing.” Also vital for launching a successful value-added business is persistence. The van Bergeijk family makes Gouda-style cheese from their Holstein dairy herd in a cheese plant on their farm near New Hamburg, Ont. Their cheese is now sold all over Ontario including through a major grocery store chain. When asked what it takes to successfully launch a value-added business, cheese maker and owner, Adam van Bergeijk says: “It takes someone who doesn’t give up. When there is a roadblock you have to think: How am I going to manage it so I can get to my goal?” But in the early stages, you’ll need to separate dreams from farming business opportunities. When you are starry eyed in the very beginning (in what entrepreneurial experts call the “infatuation stage”) it can be difficult to distinguish a chance to expand your business from a non-viable drain on your farm. The way to inject some reality into your idea is by conducting research. This could mean talking to farmers doing projects similar to what you envision, looking up data online, consulting advisers, or surveying potential customers. Most of all, asparagus entrepreneur Tim Barrie recommends farmers get unbiased feedback. Don’t rely on family and friends, he says. They are likely to be too optimistic. CG With a passion for farming and food, New Dundee, Ont., writer Helen Lammers-Helps brings farmers and value-add experts together for her four-part C ountry G uide series. She can be reached at helen@hlhwriter.com.
- Holly L., Didsbury, Alberta, 2014 AWC Delegate
y! . da ed to it er lim st s gi g i Re atin Se
“ Thank you for helping me on my journey as a woman, rancher, mom and human. All the speakers were amazing and relevant in so many ways.”
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
WESTIN HARBOUR CASTLE, TORONTO, OCT 5 & 6, 2015
March 3, 2015
country-guide.ca 37
Advancing Women Conference / Canadian Cattlemen 7” x 3.357” / Alberta Quote
HR
Are you in shape? By Pierrette Desrosiers, work psychologist, business coach, and author arm work is physically demanding, so it is no surprise that farming has always been synonymous with health and good physical condition. But is that still the case? Peter has no energy anymore. He wakes up exhausted and feels winded at the slightest effort. It seems he always has a backache too. On his wife’s advice, he consulted his doctor, who recommended that he lose at least 40 pounds, change his diet and get some exercise. Leaving the doctor’s office, he felt insulted, and he mocked the doctor’s warnings: “Since when does a farmer need exercise? As if we didn’t get enough already! It seems to me that he doesn’t know much about our work.” Even though both the public and farmers themselves perceive farmers as healthy and physically fit, I see in my own practice more and more farmers who are less and less in shape.
It is exercise alone that supports the spirits and keeps the mind in vigour. — Marcus Tulleus, 65 BC Should you care about exercise? The answer is yes, and not just because of your health. Exercise will help you better manage your business. Scientists have learned more about the brain in the last 10 years than in all previous centuries combined. In regard to thinking clearly, making better decisions, and improving memory, John Medina, a molecular biologist, says, “Research has consistently shown that exercisers outperform couch potatoes in tests that measure long-term memory, reasoning, attention, problemsolving and fluid intelligence. When combined with the health benefits exercise offers, we have as close to a magic bullet as exists in modern medicine.” In other words, if you think that exercise is a luxury, think again. But what should you do to remain in shape? Physical health scientists assert that to retain or improve one’s condition, you should do an average of 30 to 60 minutes of light to moderate activity three to five times a week, depending on the intended objectives. Does normal farm work meet that minimum? “That is no longer the case for many farmers,” says Quebec kinesiologist Jimmy Lévesque. “Over the last two decades, the modernization of farming has produced a profound transformation in the farmer’s work.” 38 country-guide.ca
Furthermore, Lévesque explains that in daily farming work, some muscle groups may be worked very hard at the expense of other muscle groups, producing backache or the phenomena of curvatures and muscular imbalance. In the end, even Peter ends up admitting, “When I work 16 hours a day planting, it’s the machinery doing the work, not my body or my heart.” But how do you know if you need more exercise? • Your body mass index (BMI), your weight in kilos divided by your height in metres squared (BMI = kg/m2), is higher than 28 (Google for web sites that help you calculate and use this number). • You climb three flights of stairs, and you are too winded to talk. • You have trouble doing 10 sit-ups. • After a moderate (70 per cent MHR) 10 to 15 minute workout, it takes more than five minutes to return to your normal heart rate. • You have trouble touching your toes with your fingers when seated on the floor with your legs extended. The more yeses you have, the more you should consider getting in shape and eating healthily. At a gym or not, individually or in a group, getting back in shape is an important decision and requires major commitment and discipline. So, yes, you have to invest time, energy and money, but the benefits are extremely profitable with regard to your physical, psychological and financial health. Remember, if you don’t invest in your health now, someday you will be forced to do so by an illness; it will no longer be your choice. As the years pass, I see more and more farmers who recognize their need to get in shape. This isn’t true for everyone — some are in shape already, while others still think that farmers don’t need to exercise because exercise is for those who work with a pen. I sometimes meet business owners who find it crazy that a farmer would go to the gym or ride a bike. Health comes from changing your belief system, knowing why you want to improve yourself, and planning to take action. Finally, if you hear your little voice saying, “I don’t have time for that, I can’t afford that,” ask yourself if you can afford not taking the time to be healthy. But start smart. See your doctor before any significant change in physical activity. 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. March 3, 2015
business
The class of ag learning These farmers find it rewarding and enlightening to host student field trips. Should you? By Ralph Pearce, CG Production Editor armers need to open their farms to more people!” It’s a modern rallying cry from both inside and outside the agri-food industry as the two sides try to build better bridges to each other. But when do dairy or hog producers have time to conduct tours? And are grain farmers supposed to stop planting or spraying just because some group is out for a drive? Doesn’t “open” mean “overrun?” Maybe it's a matter of setting parameters, and then keeping to them. It’s a strategy that works for Shawn McRae as he continues his grandfather’s tradition of opening his farm to research. McRae farms 500 acres at Bainsville, Ont., near the Quebec border, and he hosts three or four farm tours each year. Most are first-year students from McGill University’s Macdonald Campus in Montreal’s west end, but there are also groups of grad students who come to the farm to work on their theses.
“ It’s a thing to do because you believe it’s the right thing to do, and there’s no predicting what good will come of it, but you know intuitively that it’s something you should do.” — Shawn McRae “I get to experience the unique reward that teachers talk about — when you can change a bored expression into rapt attention, or take farm-savvy kids who figure they already know their stuff and open them to a new line of thinking,” says McRae. “Or take a city kid who’s maybe top of the class in technical knowledge. Drop a chunk of sweetsmelling, well-aggregated soil in their hands, and watch their expression as the earthworms crawl out. Anything you can do to open a window and expand a kid’s receptivity to new knowledge, or inspire creativity — that is priceless.” It was McRae’s grandfather followed by his father who started him on this path, working with Kemptville College as something of a payback to their alma mater. Much of the work done on the McRae farm from the 1960s to the 1990s focused on tile drainage, with Dr. Bob Broughton visiting during the summers of McRae’s formative years. Broughton came to the farm to design a system that would solve the flooding March 3, 2015
that resulted from dams on the St. Lawrence Seaway. The goal was to lift the water from the tile drainage system, and Broughton was successful. From there, he began sending grad students to the farm to study the system he and the McRaes had built. “One of those grad students also became a professor — Dr. Peter Enright — so he started bringing his firstyear students,” says McRae. “And they’re very ‘fresh’ — they’re in their first week of school when they come out, and the tours have kind of evolved from there. There’s no monetary return to it, so it’s a thing to do because you believe it’s the right thing to do, and there’s no predicting what good will come of it, but you know intuitively that it’s something you should do.” The number of first-year students who come out to the farm is now up to around 40, partly due to the run-up in commodity prices starting in 2008. It was at that point, says McRae, that more young people began to think about agriculture. McRae was a student himself (at the University of Guelph) when he got involved, so he was practically the same age as the group. “That’s all changed, to the point where I now have another 20 years practical experience under my belt,” says McRae. “Now being a more mature person, I’m looking at these students and as I scan their faces, I’m looking for a change in their level of interest as we go through things, and the expression often goes from ‘We’re at a farm, and what a waste of time,’ to where I start going through the complexities involved, and it’s almost inevitable that I can draw them in.” McRae also hosts groups of agricultural specialists from China, which has helped change his own outlook. With visitors from another country, he’s not seeing “fresh-faced” young Canadians but international business people, who until recently were more likely to be viewed as potential competitors instead of colleagues. “I often ask myself why I’m giving away my ‘secrets’ to my competitors, but it’s just the way I was raised,” says McRae. He adds that it was much the same attitude that spurred his father’s interest in joining the Innovative Farmers Association of Ontario. “It’s just the way you grow together — you get more than you give in the end, but it’s hard to keep a ledger account of that.” In addition to visiting Chinese specialists, McRae has hosted several farmers from Quebec, many of whom are ridge-tillers, with a few organic growers as Continued on page 40 country-guide.ca 39
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Blake Vince (far left) shares all he’s learned about productivity, soil health and agricultural sustainability to undergraduate and graduate students from University of Guelph’s Ridgetown Campus. Photo courtesy of Blake Vince
Continued from page 39 well. The exchange of information there includes what McRae considers some tough questions concerning the equipment he uses. Yet coming out of those sessions, he’s received reciprocal invitations — to visit the Quebec farmers, as well as those in China. It’s impossible, he notes, to predict the kind of relationships that those visits might foster, but 20 years from now, says McRae, his children might see some fruit from the seeds he’s sowing today.
Seeing a field as a classroom Where McRae is part of a long-standing tradition, Blake Vince is a bit of a novice, but only in terms of on-farm visits, an idea he got involved with last September. It was Dr. Dave Hooker of the University of Guelph’s Ridgetown Campus who approached Vince, who farms just southwest of Chatham, Ont. Hooker had developed a “Crop Club” for students, and he proposed the tour to Vince, who agreed to an evening visit, hosting the first meeting of the new club the first week of school. Just as McRae says he loves to “see the light come on,” Vince experienced the same sense of satisfaction, both in the field and after the visit, often via Twitter. “They’re engaged and they begin to formulate things as they’re standing there, seeing they do have a place where they can fit in, in this industry,” says Vince, who recently completed his Nuffield Scholarship. “I told these students what my Twitter handle was, and immediately the kids who were there that night started following me. And some of them 40 country-guide.ca
would be asking questions, some from those who weren’t even there that night. Others asked me questions they wouldn’t ask me in front of the group, and there was a lot of positive feedback.” The group that came out was a crosssection of grad students who were at the campus working as well as students who are currently enrolled there. The questions ranged from “How are you able to do it?” to questions about what motivated Vince to farm. “A lot of these students who are at the agricultural school are part of this younger generation that’s enamoured with the ‘big shiny things’ — the big iron, the high-horsepower tractors — the ‘bling’ of agriculture,” says Vince. “I try to convey to them that it’s not about having your assets on display. It’s not about physical bushels — we have to get back to thinking about financial yield. So many of them are tied up because the whole industry has us going down this path of ‘producing more, producing more,’ and we have to get away from that. For a younger farmer, it’s even more important to look at the economics rather than worrying about having the latest and greatest tool.”
Bigger picture at stake Like McRae, Vince believes he has a part to play in providing information to the next generation of farmers, and to reach those younger students and share the message with them that agriculture is no longer only about farming. The opportunities are there in other career paths. The industry needs accountants, web designers and business planners, as much as it does crop advisers, plant breeders and soil specialists.
Vince mentions that the growing age gap in agriculture was referenced in one presentation at the 2015 Southwest Agricultural Conference, held at the Ridgetown Campus at the beginning of January. Agriculture has been relatively strong since 2007-08, especially growing corn, wheat and soybeans, and a lot of people’s heads are being turned back towards the farm. “So there’s a renewed interest in agriculture and there’s a larger flush of young kids coming into the industry,” says Vince. “When I left high school in 1991 and started down the path of post-secondary education, I was the only student from my graduating class who went on to study agriculture. Now, a lot of these kids from farms are considering agriculture as a potential career path.” Taking part in building that foundation for younger generations, and perhaps tweaking their interest levels also has the added benefit of showing Chatham-Kent in a more positive light. Once a vibrant balance of auto parts plants and agriculture, Vince believes the community has forgotten its ag potential. “If we want to keep from exporting all of these young minds away from the municipality, we need to start cultivating some of these people who have the agricultural aptitude to say, ‘Yes, this is a viable career opportunity, right here at home,’” says Vince. “We have to get these next-generation leaders to say, ‘Hey, agriculture has more to offer than just driving a tractor or working with animals — it’s multi-faceted. And as technology evolves so rapidly, I think that is such a key ingredient for those young minds.” One difference that separates these two “teachers” is that Vince has been conducting his own “ag-in-the-classroom” sessions for several years, starting with a series of career days for his sister-in-law, a teacher who invited him to share and speak as a farmer. Then he took that same message to the classroom for his son, who’s nine, and his daughter, who’s 12. His nephews even follow him on Twitter — and they’re not farm children. But it doesn’t stop them from learning from their uncle. “I’m in agriculture, and it’s not as though I’ve stopped learning — I’m still willing to continue to learn, so I try to be a role model for the next generation,” says Vince. “And that’s regardless of whether they’re my kids or someone else’s kids; I think it’s very important to give back.” CG March 3, 2015
soil matters………..www.ifao.com
Wayne Cantelon — Innovative Farmer of the Year written by Melisa Luymes, IFAO Director
Each year, the Innovative Farmers Association of Ontario recognizes an Ontario grower as the Innovative Farmer of the Year. This year the award goes to Wayne Cantelon. The Cantelons began zone tillage in the early nineties and haven’t looked back, experimenting and fine-tuning a system that they now use on a large scale across a wide variety of soils in Huron County. As more acres were added to the farm, the Cantelons had a decision to make: “do we add bigger conventional equipment or do we take a different direction?” Perhaps taking some lessons from history, they wanted to use less equipment, control soil erosion and be able to manage fertility. But first and foremost, they had to make the economics work. That’s when Becker Farm Equipment (Exeter, ON) brought in a Trans-Till demo unit and they tried zone tilling. Through a bit of experimentation, Wayne was convinced to break away from conventional tillage. In the first five years, he ran a side-byside comparison and he says that the zone tilled fields did as good as or better than conventional and were generally drier as well. Wayne recalls the first year was the only time the conventional plot pulled ahead and that was because they hadn’t yet found a way to add fertility into the zones. Once they solved that problem, they were sold on it. Wayne continues, “Conventional might look a bit showier but it didn’t mean anything when the combine went through.” The Cantelons grow a rotation of corn, soys, white beans and wheat, zone tilling the corn and no-tilling the soys and wheat. They put down P
and K in the zones in the fall, follow in the spring with a starter mix of 30-70-20-12S-1Z and later side-dress nitrogen. They built a folding toolbar with coulters to side-dress dry urea every 60 inches. Scott says this is an important part of their program: “It lets us control the amount of nitrogen. We can vary the rate and use almost 20% less that what most would.” More recently, they’ve had success planting oats and radish down with the dry fertilizer in the fall, admitting that it’s not a perfect system because seeding and fertilizer depths don’t jive. Still, the innovation continues at Cantelon Farms with cover crops. Last September, they tried aerial seeding 200 acres of cereal rye into corn with some success. Though the Cantelons have long put red clover after wheat, this year they have 250 acres into an eight species mix. While Scott plans to zone till his field this fall, Wayne wants to pull zones in the spring and kill off the cover crop just after he’s planted the corn. The rationale is that living roots take up more moisture than dead ones, so they will dry the soil more quickly. “One thing I’ve noticed on the cover crops,” adds Wayne, “is that when we put something green in our wheat stubble, there’s something about that combination that the worms and biology must really like. When we come back and do a spring zone, even the wheat stubble is gone. And the proof is there, you can see all the worm tents.” Wayne continues, “we really don’t understand what’s going on underneath the ground.” He believes agriculture needs more farm level research to better understand nature’s soil biology. “This isn’t something that you can just bottle up and sell.” Not wary of sharing trade secrets, both Wayne and Scott keep in touch with others on social media, to spur on their collective understanding.
CropsGuide
By Ralph Pearce, CG Production Editor
drift versus volatility
Spraying on a quiet, still morning is the best way to cut your drift risk, right? (Answer: No!) ust when farming already seemed complicated enough, here are more misconceptions that science is disproving. Except this time, the new findings will help more growers get more value from their crop protection dollar. The best part is, you’re probably one of those growers too.
Drift — Physical Trying to paint drift as worse than volatility, or vice versa, is overly simplistic, experts say. To be specific, drift can be broken down into two forms: particle drift and vapour drift. Particle drift is the more straightforward form, and mainly occurs at time of appliction when a strong wind blows some of the spray off-target. Vapour drift, on the other hand, is linked to volatility, the situation where a pesticide, once applied to a surface, be it leaf or soil, can volatilize given the appropriate temperature and humidity conditions. “All pesticides can result in physical drift — it’s just a physical property and it doesn’t matter what pesticide you’re using — all of them will drift to some degree from physical movement of the wind,” says Dr. Andrew Thostenson, pesticide program specialist at North Dakota State University in Fargo. “But very few pesticides will volatilize, and we know this because we can measure the volatility of the chemicals, and predict or estimate their ability to gas-off or vaporize after they hit a surface. And there aren’t large numbers of pesticides that volatilize.” Still, there are conditions that can make physical drift more difficult to cope with, especially in this era of larger acreages and tighter application windows. But even there, there can be misconceptions. Dr. Tom Wolf, sprayer specialist with AgriMetrix Research and Training in Saskatoon notes that many growers suspect the best way to prevent physical drift is to spray when their isn’t any wind. Not necessarily, Wolf says. “We do need some wind,” says Wolf. Just because a field seems to have no wind blowing across it, that doesn’t mean there aren’t air currents. Calm conditions eventually produce airflows, and with these variable winds during a spray application, it’s harder to control whatever amount of spray remains aloft. “On the other hand,” says Wolf, “with a consistent breeze, you know what’s downwind and you can protect that area.” Inversion figures into this too. It often occurs 42 country-guide.ca
early in the morning (but can come at dusk as well). What the farmer sees is the sun rising, the air perfectly still — supposedly an invitation to responsible spraying. Yet spraying into a still atmosphere with zero turbulence means there’s zero wind to help distribute the spray, so a portion may be left suspended in the air. When the winds do pick up, there’s a tremendous risk for damage. It’s all why Wolf discourages growers from spraying in low-wind conditions or inversion conditions. Instead, he says, they should spray with some wind.
Volatilization Vapour drift is a greater concern because it’s a less-known, harder-to-predict risk of many sprays. Historically, vapour drift was the more serious of the two, but only because in the past, farmers used more highly volatile chemicals, and volatility was always much harder to control. “Vapour drift can occur from plants or soils days after spraying is finished, and it depends entirely on the weather that follows,” says Wolf, adding that regulators in Canada have scaled back on registrations for many volatile products. “That’s one of the reasons why we’re no longer seeing the dinitroanilines and trifluralins for new crops, even though they would have a fit. There’s just too much vapour. Also there’s the deregistration of the higher-volatile esters of some of the products like bromoxonil and 2,4-D that have been gone for a long time now.” Thostenson agrees, citing glyphosate as an example of a chemical that’s widely used and has a very low potential to volatilize or vaporize. Once it hits a surface, it won’t gas-off under hot or humid conditions. There are other products and different formulations of 2,4-D and dicamba that will volatilize, however, although a lot depends on the particular product and formulation in question. “If you look at the new 2,4-D choline formulation (used in the Enlist technology), it has been reported to have a much, much lower volatility potential,” says Thostenson. “That’s not to say that the 2,4-D choline will not volatilize, it’s just much better at resisting volatility.” So if we return to the question of whether drift is worse than volatilization, it becomes clear why the experts are saying it may be the wrong question to ask. “Is one worse than the other?” says Thostenson. March 3, 2015
weed management
“No, all pesticides will physically drift, but some pesticides will physically drift and they can also volatilize or result in vapour drift.”
The addition of genetically modified technologies has created more convenience but also the need for greater awareness of interactions and situations associated with physical drift and volatility.
GMO debate In mid-January, Monsanto gained registration of Roundup Ready 2 Xtend soybeans, with expectations the company will have sufficient seed containing its dicamba-resistant trait for the 2016 planting season. There’s a similar expectation for Enlist seed technology’s 2,4-D ester technology from Dow AgroSciences. The launch of these technologies has many growers hoping their lives get simpler, letting them address their weed control and their weed resistance management needs in a practical, reliable way. Again, Thostenson and Wolf don’t entirely agree. Thostenson cites glyphosate as a simple, non-volatile herbicide that replaced a variety of high-volatile pesticides that were used until the introduction of GMO crops, including phenoxy herbicides and dicamba. So the introduction of glyphosate tolerance actually reduced the amount of volatile pesticides being used. “Now we’re proposing to reuse some of these pesticides that we haven’t used for perhaps 10 or 15 years on a broad scale,” says Thostenson. This time, however, the difference is that the new products have lower volatility. “Some of these phenoxy herbicides, are vastly different improvements over where we were using 15 or 20 years ago,” Thostenson says. That said, however, he adds that “everybody is a little apprehensive because they think about the way it used to be, and they’re wondering if that sort of problem is going to manifest itself with the introduction of these new-generation, genetically modified organisms that include these phenoxy-based herbicide resistance.” From his perspective, Wolf says there’s another correlation between GMO technology and drift. He refers to it as “the Big Wake-up” when Roundup Ready was introduced in Saskatchewan in 1996. Prior to that, glyphosate was used primarily as a pre-seeding treatment while the land was still relatively dormant. “Now we’re spraying in the middle of the growing season, when everything’s vulnerable, and that’s when the wakeup began,” says Wolf. He also started March 3, 2015
“ We do need some wind,” says Dr. Tom Wolf. “With a consistent breeze, you know what’s downwind, and you can protect that area.” working with Monsanto, Bayer and other companies, trying to document how to mitigate the drift risk with coarser droplets. “That’s how the whole movement to low-drift nozzles really gained traction and the air-induction technologies showed that these products could be applied safely with those types of nozzles. Those are still the first kinds of technology that people use to reduce drift.” But the GMO issue also bumps into shifts in weed species such as kochia, a very troublesome weed in Western Canada and parts of the U.S. Great Plains.
“Instead of just one kochia species, we now have three,” says Thostenson, citing subspecies that are resistant to glyphosate and fluroxypyr (Starane). “What happens is that these resistant biotypes become a different genetic problem that we’re having to deal with, which means we have increased our problems threefold in kochia. The resistance issue means that we’re going to have more biotypes, which means we have more problems to deal with.” Continued on page 44 country-guide.ca 43
CropsGuide Tighter windows and tank mixing different chemicals cannot override the need for diligence and attention to detail in spray applications. Continued from page 43
Do we have to go slower, smaller? Against the backdrop of tighter planting and application windows, many growers are upping their sprayer speeds. But Wolf urges caution. Sprayer speeds are definitely a challenge, with both physical drift and vapour drift. To Wolf, sprayer speed is among the biggest enemies of the modern spray operation. “Aside from spray drift, which we can show increases with faster travel speeds, a lot of other things also become worse,” says Wolf. “Wheel tracks become worse, uniformity of deposition from the boom becomes worse because of turbulence. And you have difficult situations in terms of pressure management — booms have to be higher for faster speeds — and all of those things work against the quality job that we’re trying to achieve.” Wolf adds that if there’s a reasonable wind but a fast travel speed, there’s a large amount of wind being generated at the boom, and that removes the fine droplets that would otherwise be pushed to the canopy with the spray cloud. This allows them to drift free to move wherever they get blown, so a greater portion of the spray is at risk. Thostenson admits slowing down may be impractical. In a perfect world, he says, it would be better if growers did drop their speeds, but it may be more realistic to focus on finding better windows for when and where to spray. “If you slow down and you’re much more prudent in your operations, there’s much less of an opportunity for spray drift,” says Thostenson, adding that it simply
“ Even the very best nozzle that’s been designed to minimize fine droplets, in the hands of someone who doesn’t have it properly set up, can make things go — Dr. Andrew Thostenson very, very bad.” enables the grower to manage things better. Yet the “ideal” spraying conditions related to weather are limited, meaning there’s a greater need to maximize efficiency with so few “good” days. “We also know that if you apply pesticides at extremely high ground speeds with an airplane — speeds in excess of 160 to 170 m.p.h. (roughly 255 to 270 km/h — you do get more breakup of the droplets and so there are more fine droplets available to be subjected to drift.” With ground applications of 24 to 32 km/h (15 or 20 m.p.h.), the same thing happens: the droplets break up more at that high rate of speed and so you get more driftable fines.
A new Ontario resource Dr. Jason Deveau (@spray_guy) is one of the latest to land with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) as the go-to source on sprays, applications and the physics involved in maximizing deposition. Since his arrival with the ministry, he has been a veritable treasure trove of information, with videos and Internet links, guides and research reviews. Deveau is quick to defer to the research and findings of Drs. Andrew Thostenson and Tom Wolf (see main article). Yet Wolf is the first to say growers in Ontario are certain to benefit from Deveau’s dedication and commitment. Readers can learn more from Deveau’s many presentations by going to: http://sprayers101.com/additional-information/presentations. Deveau’s take on the issue of drift versus volatility is Presentation 8, but there are other worthwhile documents and videos worth considering, including one on sprayer cleanout.
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Impact of nozzles A decade ago, Wolf started saying that the type of nozzle is the biggest factor in drift risk, whether it’s the latest from Tee-Jett or an air-induction design. Instead, it was the operator’s knowledge of water volumes, chemical makeup, weed species, air pressures and boom heights, among others. That hasn’t changed, Wolf says. “What I have now is a renewed emphasis on communicating the exact spray quality that the producers are getting out of their nozzles,” says Wolf, who’s trying to develop some tools to help with that. That means that producers need to get the numbers on their nozzles, which can take some digging through manufacturers’ catalogues and other literature. But he also urges growers to keep those numbers in perspective. “Without exception, even the very best nozzle that’s been designed to minimize fine droplets, in the hands of somebody who doesn’t have it properly set up can make things very, very bad,” cautions Thostenson. “It’s absolutely critical, no matter what pesticide nozzle you’re using that you use it within the parameters recommended by the nozzle manufacturer.” CG March 3, 2015
THE ONTARIO AGROLOGIST A conversation with Tony Morris P.Ag., Senior Relationship Manager, Agriculture, Meridian Credit Union, and a former president of the Ontario Federation of Agriculture OIA’s longstanding mission statement:
including some Agrologists, have always
To protect the public by certifying
tended to sell themselves short. Many
the competence of qualified
people in agriculture, for some reason,
practitioners and to build public
find it hard to present themselves as
confidence in Ontario’s agriculture,
being a credentialed professional,
agri-food and environmental sector.
while they are directly involved in
Q: As an Agrologist and an OIA
an extremely important industry for
member, do you think this mission
our economy and for society. I can
statement has relevance today?
say that I’m not shy about putting
Tony: Yes, as a member of the Institute, I believe that mission is still valid and relevant for the Institute, itself. From
P.Ag. on my name tag at ag related meetings, and I make sure it’s on all of my business correspondence.
my own standpoint as a practicing
Q: Do you think this ‘understated’
agrologist working in an ag related
presence is having a direct impact
industry and deals directly with
on the agricultural industry?
clients every day, I prefer to think
Tony: Yes, it’s damaging this industry.
will want to carry on? I can’t think
in more concise terms. For me, it all
I go to a lot of Ag industry meetings,
of another industry where people
comes down to three things: Trust,
especially at this time of the year,
involved have spent so much time
Transparency and Authenticity.
with grain processors, agribusiness
talking about how hard things are,
Q: Can you put those three
people, even research scientists.
and how tough this work is. That does
attributes into context?
And at every single meeting I hear
not put this industry in a good light.
Tony: Let’s take them one at a time.
the same thing: ‘We cannot find
First, trust. Just about everything in
technically qualified people to work in
life revolves around people and
our industry.’ I’m hearing it everywhere
relationships. There can be no strong
and I have to ask myself: Why are
foundation for a relationship in business,
we having such trouble attracting
professionally, or on a personal level,
qualified people into this industry?
if that trust factor is missing. Second,
Q: Care to speculate
transparency in what you’re doing
why that might be?
is really the only way to build a solid, trust-based relationship. And finally authenticity, largely the ‘professional’ part of the equation, and in how you are perceived by others. Essentially, it’s putting your best foot forward.
Tony: I think some of it has to do with how my generation presented ourselves to our own kids, and to society in general. Back in the 1980s, the 1990s and in the early 2000’s when we had all of the livestock sector problems and
Q: And how do you think the profession
the low commodity prices, we spent
of agrology presents itself?
a lot of time complaining to just about
Tony: I’ll take that a bit broader. Quite
anyone who’d listen. About how bad
frankly, people across this industry,
this industry was. How hard it was to
make a go of it. Is that something an industry should be saying, while taking for granted that a next generation
If you work in an Industry, you’re a spokesperson for it. If you’re going to attract good people into the agricultural industry, you, as an individual, have to project a positive, professional image. That’s where it starts.
The Ontario Institute of Agrologists represents nearly 500 Professional (P.Ag.), Technical (T.Ag.), and Articling (A.Ag.) Agrologist members across Ontario’s diverse agricultural industry. The OIA is based in Guelph. For a current listing of OIA Members, events and information go to the website shown below.
www.oia.on.ca
CropsGuide
By Ralph Pearce, Production Editor
New research How your crop gets a sneak peek It turns out your crop sees and reacts to weeds before the crop even emerges
Treated seeds
Untreated seeds
eed science is constantly evolving and adapting as it learns more about the basic interactions of crops and weeds in the field. Now, get ready for another evolutionary rethink. Early in 2014, Dr. Clarence Swanton, a professor and researcher with the department of plant agriculture at the University of Guelph, brought to light new research indicating corn and soybean plants are capable of sensing another plant species nearby, setting in motion a series of cellular reactions, including a loss of anthocyanins and an overproduction of hydrogen peroxide, which degrades cell membranes and damages DNA. Some 20 years prior to this find, Swanton revolutionized weed science with the discovery of a “critical weedfree period,” a stage in the growing season defined as V2 to V6 (four to 10 leaf-tips) in corn and up to and including the first to third trifoliate in soybeans. Recently, Swanton published another intriguing study showing that corn seeds detect the quality of the light that penetrates below the soil surface. What’s more, the quality of this light may let the crop know about the presence of plants (i.e. weeds) above ground. On top of that, thiamethoxam, a common insecticidal seed treatment, can affect germination by altering how much gibberellin (GA) and abscisic acid (ABA) is generated according to the quality of that light.
Weed free
Weedy
Thiamethoxam increased percent germination and length of the root radicle. photo courtesy of Dr. Clarence Swanton, University of Guelph
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It all sounds very scientific, which it is. But it also sounds like it may pave the way for some exciting new approaches to weed control.
The known It’s a research project that dovetails with previous work by Swanton, and then updates it. This particular project was done entirely in the lab and, at present, there’s no intention of moving it outside. It was carried out only to confirm the hypotheses about light quality and interactions, and the subsequent effect of a seed treatment. Swanton’s latest research is contained in a manuscript that was submitted in July 2014 and accepted for peer-reviewed publication this past November. Its abstract cites some of the factors involved in the study that have become standards in weed science. For one, red and far-red light wavelengths can penetrate an inch down into the soil and delay germination in a seed through a series of cellular interactions. Penetration is determined by soil type, particle size, and moisture content, as well as by the wavelength of the light, with far-red wavelengths penetrating the deepest, particularly in sandy soils. Another component in the abstract states that thiamethoxam, applied as a seed treatment, can enhance germination but that no previous work on its effect on buried corn seed when germinating in the presence of above-ground weeds has been done. “We hypothesized that the changes in red:far-red (light) reflected from above-ground weeds would be detected by (corn) seed phytochrome and delay seed germination by decreasing the level of GA and increasing ABA,” says the report’s abstract. “We further hypothesized that thiamethoxam would overcome this delay in germination.” “This is kind of like the ‘start clean and stay clean’ principle,” says Swanton. “Our scenario here is that this is the first time that anyone has reported that corn seed can detect above-ground activity. Now this whole story happens at a shallow level, but what is neat from the other studies is that we’ve actually sampled the emerging seedling, and tried to detect some of the changing physiology within that emerging seedling.” All of this counters the notion that plants are simple organisms, with Swanton adding that they’re learning that plants are in an almost constant state of change, responding to these complex chemical, cellular, and even molecular processes. This latest research confirms that a buried corn seed is actually detecting March 3, 2015
weed management before it emerges above, which means it’s already preparing its physiology to address the situation above-ground. “The idea that a plant could lose yield potential by the minute based on some of our work changes one perspective — it makes you pay attention to weed control, rather than delay it,” says Swanton. “But what this does is really provides the science behind the idea that early weed control is important along with the concept of ‘start-clean, stay-clean,’ because those things we do as a rule of thumb.” It’s worth noting that thiamethoxam is a neonicotinoid insecticidal seed treatment. That it might offer some added benefit, over and above the current furor concerning the potential impact on bee health, and the proposed ban on its use by the Ontario government, was not part of the rationale behind the research. Instead, it was an observation concerning germination, similar to other serendipitous discoveries like the use of fungicides as growth regulators. That a fungicide could increase yield by delaying maturity might not have been part of its initial mandate. Yet that segment of the chemical industry has augmented the delay-maturity-to-increase-yield benefit that fungicides bring. “Suddenly now, some of this relatively newer chemistry has some of these benefits,” says Swanton. “And that’s why we went to thiamethoxam, because with the far-red effect, we were seeing all of these negative impacts on a plant, and then they were talking about how they could boost seedling development.” Swanton then approached representatives of Syngenta, the manufacturer of thiamethoxam used in the company’s Cruiser formulations, and asked if they’d be interested in his research, to which they consented. Growth from five petri dishes containing five seeds and replicated five times were analyzed according to the percentage of seed germinated and radicle root length. Corn seeds were harvested at six, 12, 24, 36 and 48 hours. “It was on my own initiative. Nobody paid us to do this,” says Swanton. “We had a hypothesis about why we thought the seed treatment would work, and we tested for it. And at the very end, whether it’s neonicotinoid insecticides or not, it shows a principle. It suddenly opens up the whole idea that a seed treatment could be a gene trigger, and that’s what’s really significant about it.” Rather than thinking about seed treatments only as an insect and disease issue, Swanton might be able to explore other types of chemistries in an effort to determine whether they also have triggering effects. That work could then open up a whole new perspective on chemical uses and applications. “And that’s what I think is the most exciting aspect — the fact that you could put some chemical on a seed and thereby trigger some of these genes to actually protect the plant against stress,” Swanton says.
The light penetration effect in corn may also apply to soybeans, and Swanton refers to a thesis being written by one of his MSc students, HaeWon Kim. She’s been working with potted soybeans and examining the effect of potted weeds placed beside the soybeans. That level of proximity on its own is sufficient to adversely affect nodulation, says Swanton. Kim is also scheduled to present her findings later this year to the Weed Science Society of America. Granted, this is a lot of information to disseminate in the course of a little more than a year, yet Swanton is confident that growers can benefit from the overall message. He’s shared his report with Syngenta, as well as a gathering of the Innovative Farmers Association of Ontario just before Christmas 2014. The message is simple. “This is something that evidence confirms, so this is why you want to reduce your risk to management and this is how we propose you do it,” says Swanton. CG
According to research from Dr. Clarence Swanton, even at this stage of emergence, a corn plant has altered its physiology in response to nearby weeds and is losing yield.
Of ratios and wavelengths It’s known that seed germination is affected by an inverse relationship in the levels of gibberellins (GA) and abscisic acid (ABA) with higher levels of GA desired for germination. Where the ratio of red to far-red (R:FR) light influences this process is that with a high R:FR, phytochrome, a photoreceptor in the plant cells detects light and affects the level of GA biosynthesis. An increase in the level of GA causes the destruction of DELLA repressor proteins. By contrast, a low R:FR ratio will lead to an accumulation of DELLA proteins, repressing GA responses and increasing the presence of ABA, effectively blocking germination. Another relationship affected by GA and ABA is in the expression and activity of alpha- and beta-amylase enzymes. These enzymes break down starch into simple sugars, creating an energy source that’s readily available for seed germination. Again, with a high R:RF ratio, GA increases and the production of both alpha- and beta-amylases is enhanced. But under a low R:RF ratio, GA decreases, ABA increases and amylase production is blocked, subsequently suppressing germination.
March 3, 2015
country-guide.ca 47
CropsGuide
#PestPatrol By Mike Cowbrough, OMAFRA
Have a question you want answered? Hashtag #PestPatrol on twitter.com to @cowbrough or email Mike at mike.cowbrough@ontario.ca.
What are the best apps for agriculture? elow is a summary of a live demo of different agriculture apps that Peter Gredig (AgNition) and I gave at this year’s FarmSmart Agriculture Conference at the University of Guelph. Rule #1: Unless you’re looking for games like Farmville, Farming Simulator or Kid’s Farming Sim Tractor, search for apps in Google first before searching through your device’s apps stores, be it iTunes, Google Play or Blackberry App World. Rule #2: A number of apps are free or have free versions that offer fewer features. Bottom line, there is no downside to trying a free app. If it doesn’t meet your needs, delete it.
Apps for note-taking or record-keeping Evernote Cost = Free (limited features), Premium = $5/month or $45/year After our session, a number of participants came up and asked for recommendations of record-keeping apps for agriculture. There are a number of non-Ag apps that would fit this need. Evernote allows you to collect handwritten notes, make notes, record voice notes and take photos. You can easily tag the material you enter for easy retrieval later.
Apps for product support A number of companies have got into the game of producing apps to support the products they sell. We can’t cover them all, so do a quick Google search yourself, but here are a few good ones: John Deere Combine Performance Optimizer Cost = Free This takes the material that traditionally has been found in your owner’s manual and presents it in an easier and more concise way to verify the best settings to optimize your combine performance.
Apps for Ontario crop production FarmCentral (Grain Farmers of Ontario) Cost = Free A number of agronomy apps are coming for Ontario agriculture. The easiest way to access any of these apps is through “FarmCentral.” This app curates and displays other apps that are useful for Ontario crop production. With a tap of the icon, any of these apps can then be downloaded to your device. The corn nitrogen calculator app and PestManager app will be included in FarmCentral this coming season.
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Pioneer Field360 Plantability Cost = Free You select your corn planter make, scan in your seed tag, and the app provides the settings to optimize planter performance. DeKalb Cost = Free Includes product information, trial data, calculators and videos for product support.
Apps for social media Flipboard Cost = Free Flipboard collects content from your social media feeds and presents it in a magazine format that you can “flip” through and read. CG
March 3, 2015
The weed in this ad could be the last weed you see.
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BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.
Always read and follow label directions. Converge® is a registered trademark of the Bayer Group. Bayer CropScience is a member of CropLife Canada. *Based on five trials at three different Ontario locations in 2011. Trials were conducted comparing weed control with pre-emerge herbicides in corn. Trials were funded in part by the Grain Farmers of Ontario. The assistance of OMAFRA through the OMAFRA/University of Guelph Partnership is also acknowledged.
life
Better farm ambassadors More farmers are developing strategies that actually do connect with consumers By Helen Lammers-Helps n her other life as a school board trustee, Okanagan Valley chicken farmer Christina Coers sees the value of education. It’s a mindset that she brought with her when she and her husband Steven became chicken farmers under the new-entrant program of the British Columbia chicken-marketing board a year ago. Coers, 46, didn’t grow up on a chicken farm, so she educated herself about chicken farming. “It was natural for me to want to share what I had learned with others,” she explains. Coers says the myths and misinformation about chicken farming make her see red, such as the A&W restaurant ads that say the chicken they serve is hormone and steroid free. She says this implies that most chicken contains hormones and steroids. Except… that just isn’t the truth, she says. “It’s been illegal to use steroids and hormones in chicken production in Canada since the ’60s. People think that because chicken grows so fast, farmers must be using steroids, but it’s due to other things like better genetics.”
10 tips for being a better farm ambassador Whether you are hosting a farm tour, writing a letter to your local newspaper or simply standing in line at the grocery store talking to a stranger, here are 10 tips from Farm and Food Care Ontario to ensure you are being an effective ambassador for agriculture. 1. Be positive. Think customer service with a smile! 2. Know who you’re talking to and what their concerns are. 3. Be prepared. Keep up to date with issues in the media. 4. Use easy-to-understand words and explanations, not industry jargon. 5. Provide comparisons that your audience can relate to. 6. Use examples from your farm or your experience when answering questions, instead of guessing or generalizing. 7. Show you care. Really. 8. When answering a question, “I don’t know” is a valid answer. Refer them to someone else when appropriate. 9. Invite discussion. Avoid debates and confrontations. Everyone is entitled to their opinion. 10. Remember, you may be the only person in agriculture someone ever has the chance to meet. Make that impression memorable! Don’t forget, as an ambassador for agriculture, you are always on duty!
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For chicken farmers Steven and Christina Coers, seeking opportunities to engage with consumers is part of farm life
Coers has also experienced consumer confusion first hand. Standing in line at the meat counter at a local grocery store, she overheard the man in front of her ask if the store’s chicken was “free run.” The young woman working behind the counter had no idea. Coers spoke up and explained that it most likely was free run since most chicken in Canada is raised this way, with free access to water and feed. It was during her discussion with this man that she realized he was confused by what free run, free range and organic meant. It isn’t just the non-farming public that can be ill informed. Last year when a group of local dairy farmers made a stop at the Coers’ chicken farm, one of the dairy farmers expressed his surprise that the broiler chickens were not in cages. Even within agriculture there’s room for improvement, says Coers. Coers believes farmers need to be proactive with their messaging. “We can’t expect the board to do all the work. It’s our industry, and as growers we’re a part of that.” Consumers should be able to have confidence in the chicken they buy, she says. For example, the public doesn’t know that chicken farmers are licensed and that they must be audited every year to keep that licence. Recently Coers volunteered with the BC Chicken Marketing Board to participate in a supermarket campaign that would put consumers in touch with chicken farmers. The idea was to put a face on a farmer and give consumers the opportunity to ask farmers questions, says Coers, who spent time in a grocery store in the nearby town of Salmon Arm. March 3, 2015
life
Listen first
The campaign was modelled after a similar campaign by beef producers. Hallmark, a local chicken processor, supplied free samples of chicken. Coers put together a PowerPoint presentation of pictures from her farm showing the chickens at all stages of development. The photos were interspersed with facts about chicken farming and loaded onto a computer tablet that sat on a nearby table for easy viewing by those who were interested. Most of the interest came from shoppers with young children. “Not too many people had concerns and there was only one vegetarian,” says Coers, who wonders if more people would have had questions in a more urban store. As a school trustee, Coers has also made it known that her farm is available for school tours. Chickens are part of the kindergarten curriculum in British Columbia, so Coers has had kindergarten classes come to the farm. While visitors are off limits on most chicken farms due to biosecurity risks, the Coers installed a large roll-up door in their barn when they had it built. This allows people to get a good look inside the barn without having to go inside and risk spreading disease. “Kids are the future,” says Coers. “And if we set the record straight with them they’ll tell their parents.”
Resources The Farm and Food Care Foundation is a charitable organization dedicated to providing credible information about agriculture. It provides an ag ambassador tool kit on its website and training workshops across Canada. Go to the website at www.farmcarefoundation.ca/ for more details.
March 3, 2015
For Emily den Haan, 24, who grew up on a purebred Holstein dairy farm near Alliston, Ont., farming is second nature. She says she took that for granted until she left the farm to attend the University of Guelph. While pursuing a minor in music, den Haan interacted with a lot of students who didn’t come from farms. It was an eye-opener for her. “People had a lot of assumptions and a lot of questions. I could see there was a real disconnect between the farm and the non-farming public.” After completing her degree, den Haan returned to the farm. She and her father manage the farm while her mother and older sister, Marianne, run the new dairy-processing plant where they bottle whole milk and make yogurt and kefir. They offer tours of the barn and the dairy to individuals and groups on a regular basis. The tours give den Haan the opportunity to share her passion for farming, she says. “People have lots of questions about antibiotics, GMOs, organic and neonics.” Sometimes people challenge her, and her first reaction is to get defensive. She says then you have to take a step back, take the emotion out of it, and use your knowledge to answer them. “You want to find out what they do know. It will help you with your answer,” she says. And you have to bring it down to their level so they understand, she adds. Sometimes den Haan admits she doesn’t have the answers to their questions. She says sometimes she discovers it’s just the way they’ve always done things and there may actually be a better way. “When you dig down for the answer, it can help you as a producer.” Den Haan’s parents, John and Bonnie, have always been active volunteers and have instilled the value of volunteerism in their children. She has also participated in the Grain Farmers of Ontario’s Grains in Action program which gives young farmers from across the province a better understanding of what happens to their corn, soybeans and wheat crops after they are delivered to the elevator. While the program primarily helps participants have a better understanding of the full value chain in production, it also better prepares them to answer questions from the media. Den Haan also shares her passion for agricultural education as a youth adviser for Ontario AgriFood Education Inc. (Agriculture in the Classroom program). Since it’s only been six years since den Haan was in high school, she’s able to use her experience to help get youth engaged. “It’s very rewarding to see people learn something new,” says den Haan with a smile. CG
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Tuberculosis — Are you at risk? By Marie Berry
ften simply called TB, tuberculosis also used to be called “consumption” and you are probably familiar with the symptoms from movies and books. These symptoms include a long-lasting cough, chest pain, coughing up blood, and weakness. In 1926, health reports cited tuberculosis as the cause of one out of every 13 deaths. Historically, it was a common disease affecting both famous and regular people equally. Robert Browning, John Keats, King Henry VII of England, and Florence Nightingale were reputed to have had tuberculosis. More recently, individuals like Vivian Leigh, Tom Jones, and Ringo Starr were affected in their youth. Today, the risk of contracting tuberculosis is small, thanks to various medications and less congested living conditions with improved sanitation. However, about 1,600 new cases are reported in Canada each year, with the highest incidence of tuberculosis among 25- to 44-year-old people, and First Nations and Inuit having the greatest risk. Women seem to account for most cases until the older ages are reached when men seem to have an increased incidence. Perhaps these trends arise from women being in the home more often and potentially in contact with others with tuberculosis. Then, as men age, they have more medical conditions that impact their health. Tuberculosis is an infection caused by a bacteria known as Mycobacterium tuberculosis. It affects the lungs most commonly since this is the site where the bacteria are usually first breathed in. However, the bacteria can spread to the kidney, spine, and brain. If not treated, the infection can result in death, so early diagnosis and treatment is key. The disease is transmitted by droplets spread by an infected person when they exhale. An uninfected person breathes these droplets into their lungs, and when the bacteria from the droplets begin multiplying in their lungs, the new person becomes infected. Some people, when they are exposed to the bacteria, do not become infected, a phenomenon termed “latent tuberculosis.” Their body is able to stop the bacteria from multiplying so the bacteria become inactive, although they are still alive and may be active later.
It is for this reason, that anyone who comes into contact with an infected person needs to be treated. About 10 per cent of people who are infected will develop tuberculosis some time during their lives, and the chances are the greatest during the first two years after exposure. Thus, after exposure, you don’t know if or when you might develop the disease, but a healthy immune system seems to be key. If you already have an immune system that is not healthy, then exposure to tuberculosis increases the risk for the disease. Babies and young children may not have fully developed immune systems. Diseases that affect the immune system such as HIV infections or cancer, and even diseases like diabetes can increase your risk. Any drugs that impair the immune system can add to the risk, for example anti-rejection drugs for organ transplants, rheumatoid arthritis drugs, and drugs of abuse. Heavy cigarette smoking, low birth weight, and malnutrition may also weaken the immune system and thus raise the risk. Tuberculosis is not spread as easily as the common cold or flu, but it is the same type of spread, i.e. droplet spread. While the common cold or flu can be spread through contaminated surfaces such as doorknobs or handshaking, tuberculosis is not. However, if you spend several hours with an infected person, you are likely to breathe in contaminated droplets, and if you are sharing a crowded home, your chances increase. Families sharing cramped living spaces, nursing home residents, prison inmates, and health-care professionals working with people with tuberculosis are at greatest risk. People with a low socio-economic status also seem to have a greater risk, perhaps because of crowded living quarters, homelessness, or maybe even inadequate treatment. Today, antibiotics are the cornerstone of tuberculosis treatment and are used both for anyone who has come into contact with the disease or actually has the disease. A six- to nine-month course of treatment is needed, and if it is not completed, the infection may remain, with the bacteria becoming resistant to the antibiotics. Tuberculosis treatment is one prescription where you want to follow the instructions carefully and finish all your antibiotics. Marie Berry is a lawyer/pharmacist interested in health and education.
Using eye drops can be difficult, and if you need to use them regularly, it can be a challenge. Sometimes, the drops drip from the eye or you “hit” your cheek with the drop, and if you routinely use two different ones, you may not know which to use first. Next issue, we’ll talk about eye drops and how to use them most effectively.
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March 3, 2015
HAVE YOU GOT IT? “What should I wear to church?” We are in Phoenix, Arizona, and have been invited to attend a large, theatre-style church in the desert. “You can wear what you want. From jeans to a suit and tie, anything goes.” Perhaps I was overdressed in a blazer, slacks and shiny shoes, but I don’t think anyone noticed or cared. When I was not paying attention to the sermon, I reflected on “church clothes.” At one time a certain standard of dress was expected. Only the best would do when meeting the Lord. Sadly, I recall a family saying they did not attend church because they could not afford the obligatory clothes. Apparently there is a debate about church clothes. Some churches encourage people to wear casual clothing. They quote verses such as 1 Samuel 16:7 “People look at the outward appearance, but the Lord looks at the heart.” Other churches consider worship a time for “Sunday best.” They quote Psalm 24 “ascend to the hill of the Lord with clean hands and pure hearts.” Gone are the days when men owned one suit and wore it for weddings, funerals and church services, while women looked for a new hat each Easter. “Smart casual” is in. A man attended a church for many months. One Sunday he sat in his usual spot with his hat on. An usher reminded him that he was wearing his hat. A few minutes later the chair of the church committee gave a gentle reminder that he had his hat on. The man sat waiting for the service to begin. Then the head server spoke to him, followed by the choir leader. Word spread. “There is a man sitting in church with his hat on.” The president of the women’s group and the parish treasurer spoke to the offender. He sat unconvinced. The pastor came and pleaded with the man to remove his hat. Finally the man spoke: “I have been coming to this church for many months and no one has spoken to me. Today I have met all these people, and I have even met you!” Trevor Mwamba in his book, Dancing Sermons, tells a story from an English cathedral, the sort of place where nothing appears to have changed for centuries. “It was a glorious hot day in August, and a girl arrived in a bright coloured beach robe. She prayed devoutly for some time.” “Inside the cathedral the temperature rose to 95 degrees F and the girl sensibly shed her beach robe. Beneath the beach robe was a bikini of remarkably skimpy dimensions!” Trevor says this was too much for the cathedral staff who, after a hurried conference, consulted the clergy for advice in coping with this emergency. The clergy in charge were not noted for quick decisions. What was to be done about the girl in the bikini? Could she be persuaded to replace the bath robe? Would she move to a cooler part of the building? One elderly priest suggested the decorum of the cathedral was at great risk. The senior cleric, called a dean and noted for sound theological principles, was “incapable of constructive thought.” Mwamba says, “In true Anglican fashion, they unanimously decided to do nothing at all. Leave her alone and hope for the best.” At the next staff meeting they concluded that of all the people who had gathered for worship, the girl in the bikini was the only one who was suitably dressed for the occasion. Suggested Scripture: Luke 12:27-34, Colossians 3:12-1
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Rod Andrews is a retired Anglican bishop. He lives in Saskatoon. ©2015 Farm Business Communications
March 3, 2015
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acres
By Leeann Minogue
Please answer the phone! By the morning of the third day, Dale Hanson was worried “I don’t know why he’s not answering his phone,” Dale said to his wife Donna. “Remember the last time you got all worked up about Ed not answering the phone?” Donna said, looking up from her magazine. “He was at a fish fry in the trailer court.” The first year his father had packed up and headed south to spend the winter in Arizona, Ed had phoned home at least once a day. Now that he’d made friends in the Yuma trailer court and was spending most of his time with his girlfriend Helen, Ed’s social life was more active than the rest of the Hansons at home on their farm in southeast Saskatchewan. Dale ignored his wife and went down the hall to his office. “This has gone on long enough. What if something’s wrong? I’m going to look up the number for the trailer park office.” While Dale was using Google to find the phone number, his son Jeff knocked on the door and came in. Donna poured him some coffee and passed him a slice of poppy seed cake. “You haven’t made this for ages,” Jeff was telling his mother when Dale came back. “Answering machine. The office is closed for the weekend,” Dale muttered. “You still haven’t got hold of Grandpa?” Jeff
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asked. “Do you think maybe he decided to come home early?” That would have been a relief. In the past few weeks, every time Dale or Jeff had asked Ed when he planned to come home from his winter holiday, Ed had dodged the question. “First you couldn’t wait for me to go, now you can’t wait for me to get home,” he’d said last week. “I don’t know why you’re in such a rush to get me back to that farm. Can’t you do some of the work without me?” It wasn’t that they needed Ed to do all the work, of course, but Dale and Jeff knew it was going to be a busy spring. With all the crop disease across the Prairies, the Hansons’ phones had been ringing non-stop with calls from farmers trying to track down seed for 2015. “What do you mean, you don’t have any more durum,” one frustrated caller had shouted. “It says you do, right here in the seed guide.” “We had a little left last month,” Dale had said, trying to keep calm. “But it’s spoken for now.” He’d put that caller on the growing waiting list. “Too bad we took anything to the elevator at all last year,” Dale told his wife. “We could probably get a premium selling pumpkin seeds from your garden in this market.” But now, in March, with most of their seed sold
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at a reasonable price, the Hansons were starting to worry about who, exactly, was going to be in the yard to load that seed into their customers’ trucks. They would need someone almost full time in the yard, as well as someone running the tractor and keeping the cart filled during seeding. “Grandpa hasn’t seemed very interested in the farm this winter,” Jeff said to his father. “What if this is the year he decides he doesn’t want to work anymore?” “People retire,” Donna said. “It’s not out of the question.” “You don’t expect Ed to retire,” Dale said. “I just wish he’d answer his phone. He’s almost 80, you know. And living by himself.” “He’s not by himself,” Donna said. “Helen will be with him, wherever he is.” “He has his own trailer,” Dale said. Dale liked Helen, everyone did, but he still wasn’t quite ready to admit his father was living with her. “Would you be happier if he spent all day on the phone with you? Wishing he was here?” Donna asked. “Or better yet, do you want him to spend all winter here? Driving out from town to spend his days with you in the shop?” Dale sighed. “I’m just worried, that’s all.” “Every year it’s the same thing,” Jeff said. “We think we’ve got everything handled, then we run around in a panic, trying to figure out who’s going to do all the work. Between people from Indonesia answering our online ads and retired farmers breaking their ankles falling out of our tractor cabs, figuring out how to keep farm help is going to drive me berserk.” Jeff was right. Keeping skilled operators in all the equipment was one of the main challenges the Hansons had faced over the past few years. “Maybe we should try another ad,” Donna said. “I know it didn’t go well last time, but the economy’s a little different this spring.” Dale and Jeff nodded. With lower oil prices, there was already less traffic on the road in front of the Hansons’ farm. “The last time we were going to advertise,” Dale reminded his wife, “you stepped up and took a seat in the combine. Maybe if we wait a few weeks, that’ll happen again. You might like running the sprayer. Do you even know how fast it can go?” “Nice try,” Donna said. “But I’ve had these plane tickets to Peru for three months, and I’m not letting those other five women hike up that mountain without me.” Dale was quietly shaking his head, wondering what had gone wrong with the universe, and why
March 3, 2015
nobody in his family could ever just stay home when his cellphone rang. He looked at the screen and breathed a sigh of relief. It was Ed. “Dad! It’s good to finally hear from you! I was starting to think something was wrong!” “For crying out loud, son. I’m not an invalid. You don’t have to phone me every five minutes to make sure I’m still alive.” “It’s been three days since you’ve answered my calls!” “You should find something else to do. We went up to Mesa to visit one of Helen’s cousins. Since we were there, we thought we might as well take a look at Flagstaff.”
Dale was quietly shaking his head, wondering what had gone wrong with the universe, and why nobody in his family could ever just stay home “Can’t you answer your cellphone?” “When I’m driving? And I’m not going to answer my phone when I’m standing on a platform looking out over the Grand Canyon, am I? Do you want me to fall into the gorge?” “All right, all right. We were just wondering when you’re coming home. It’s getting pretty warm up here, and we’re going to have seed buyers lined up out the driveway by the first of April.” “Oh?” Ed said, sounding like he hadn’t given the whole thing any thought at all. “I don’t have any idea when we’ll be home. I’ll have to see what Helen wants to do. I called to see if you could help me out. I signed up for one of those hotel chain points cards. It probably came in my mail. Could you root through my stack and find it?” Dale took down Ed’s details, then pressed the button on his cellphone to cut off the call. “Might as well try another ad, Jeff,” Dale said to his son. “Doesn’t look like anyone around here wants to work.” Leeann Minogue is the editor of Grainews, a playwright and part of a family grain farm in southeastern Saskatchewan.
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