eastern edition
country-guide.ca
October 2015 $3.50
‘ Freedom 52’
They’re Building a stronger farm through early retirement
Beyond the family
Dustin Krahn gets a new kind of FARM start �� PG 28
+PLUS our Annual fall Soybean guide: Better 2015 crop prices on the way Publications Mail Agreement Number 40069240
Content and Connection North America’s Premier Grains and Oilseeds Conference
Fairmont Hotel, Winnipeg, November 2-4, 2015
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Contents
OCTOber 2015
BUSINESS 10 GUIDE review
Adam Grant tells us the nice guys really do finish first — eventually. As an all-star Wharton business prof, he just might know.
11 hold on tight
The global economy is a mess, but analyst Errol Anderson still sees profitable crop prices for skilful farm marketers.
14 freedom 52
When is right for Mom and Dad to step back? The van Oords think it’s a lot younger than we traditionally thought.
18 the young are on board
Ontario’s Northumberland County has fewer young farmers than other areas, but more on its boards. Amy Petherick shares why.
22 after the tragedy…
It takes legal and financial tools on the one hand, and human relationships on the other to survive a family loss.
40 digital pursuits
Machinery editor Scott Garvey brings us some of the latest tools for collecting better data, and analyzing it better too.
44 Finding a new way
A decade ago, they might have been New Agers. Now Lydia Carpenter and Wian Prinsloo have a shrewd business plan.
50 watching for rain in australia
How dry is it? Farmer Warren Hobson’s water storage has a depth of 18 feet, but only one foot of water left.
52 Guide HR — why smart entrepreneurs do stupid things with money
PG. 26 Not related When more today's farmers look beyond the family to help young people get a farming start, they can also look to the successful approach that farmer Ken Wiebe and hopeful farmer Dustin Krahn are pioneering in southern Manitoba.
You may think you make rational decisions about your money management, but psychologist Pierrette des Rosiers isn’t so sure.
54
guide life — get more done!
After a day of office work, most of us are disappointed by how little we accomplished. Here's help to improve your efficiency.
EVERY ISSUE 6 MACHINERY GUIDE
John Deere launches its new line of four-track 9RX tractors.
57 GUIDE HEALTH
Breathe easier by finding the inhaler that’s right for you.
CROPS GUIDE 31 new in soybean varieties
These new options may help the crop continue expanding its value and range.
35 too much information
It sure would help to have those provincial advisers back on the team.
38 PEST PATROL
Milestone gives best tansy ragwort control in preliminary trial.
58 HANSON ACRES Grumble, grumble… Elaine makes another trip to town.
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october 2015
country-guide.ca 3
desk EDITORIAL STAFF Editor: Tom Button 12827 Klondyke Line, Ridgetown, ON N0P 2C0 (519) 674-1449 Fax (519) 674-5229 Email: tom.button@fbcpublishing.com Associate Editors: Maggie Van Camp (905) 986-5342 Fax (905) 986-9991 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 Sales Director: Cory Bourdeaud’hui (204) 954-1414 Fax: (204) 944-5562 Email: cory@fbcpublishing.com 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
It’s all about values “It isn’t what a person says that counts. It’s what they do.” Everyone on the farm learned this from the cradle, and over the years they’ve come to know exactly how sage this advice really is. Being in business puts your values into action. It proves, every day, exactly what your beliefs are, and what you believe about those around you. I suppose, though, it might be the sort of aphorism I should run from. After all, a magazine is all about “saying,” isn’t it? It isn’t about doing. But, of course, putting together a magazine is just another kind of “doing” too. And in our particular case, if there’s one thing that I hope our doing this magazine bears out, it’s our belief that the real energy in agriculture doesn’t come out of a science lab or out of some symposium of experts, important though those things can be. Instead, the driving force in agriculture is the individual farmer, making smart decisions, one decision at a time. It seems clear to us (and I hope it aligns with your experience of us) that the way to be at the very heart of agriculture is to focus on individual farms and what we can learn from them. It’s why you see so many photographs of farmers in Country Guide, and why you’ll almost always see the face of a farmer on our cover, even though we get criticized sometimes for printing a cover with “just another farmer.” 4 country-guide.ca
Sometimes in the trace, of course such stories get called profile pieces, or they’re simply labelled as features. But to us they’re more than that. Much more. I wanted to point that out because October is the issue every year where we write even more than usual about “money management.” But because of our belief in the centrality of the farmer, I hope you’ll appreciate that this year, we’ve chosen to do this a different way. Money on the farm is never only about money. It’s about the future, or it’s about family, or it’s about opportunity. It’s always about something. So this year, we have included a story in our Money Management issue where there isn’t any money changing hands at all. It’s the story “Not related,” and it’s about how farmer Ken Wiebe is helping non-family member Dustin Krahn get his start. Clearly, this is a story that points to what I said about doing and values. Our other stories about the van Oords, about the Connerys, and about Lydia Carpenter and Wian Prinsloo build on this belief too. I don’t expect any of our readers to believe that everything these farmers are doing is exactly what they would always choose for themselves. But it does give me a chance to express how privileged we feel that such families will share their lives and their values with us. 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: Arlene Bomback (204) 944-5765 Fax (204) 944-5562 Email: ads@fbcpublishing.com Designer: Jenelle Jensen Publisher: Lynda Tityk Email: lynda.tityk@fbcpublishing.com Associate Publisher: John Morriss Email: john.morriss@fbcpublishing.com Editorial Director: Laura Rance Email: laura@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.
Canadian Postmaster: Return undeliverable Canadian addresses (covers only) to: Circulation Dept., PO Box 9800, Winnipeg, Manitoba R3C 3K7. U.S. Postmaster: Send address changes and undeliverable addresses (covers only) to: Circulation Dept., PO Box 9800, Winnipeg, Manitoba R3C 3K7. Subscription inquiries:
Call toll-free 1-800-665-1362 or email: subscription@fbcpublishing.com U.S. subscribers call 1-204-944-5766 Country Guide is printed with linseed oil-based inks PRINTED IN CANADA Vol. 134 No. 11 Internet address: www.agcanada.com
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.
october 2015
soil matters………..www.ifao.com
IFAO Marketing Workshop Tuesday, December 15, 2015 Springfield Country Club, Guelph
Markets – Steve Kell, Parrish & Heimbecker Markets – Mike Mock, Andersons Grain Group New Ag Funding Model, Input Capital Mike Wilson– Profit mapping Craig Drury – The Effect of Nitrogen Inhibitors Cost of Production Panel Go to www.ifao.com for more information and to register Jonathon Lundgren – Neonic Perspective written by Kate Procter
As the debate over neonics rages on, farmers heard Dr. Jonathon Lundgren’s perspective on insect management at the Innovative Farmers Association of Ontario annual conference. Jonathon is lead research entomologist at USDA's Agricultural Research Service lab.“ Lundgren, a USDA Research Entomologist, explained that increasing biodiversity is vital to reducing dependence on insecticides. “We are trading biodiversity for pest problems,” he said. When we think of insects, we tend to think of pests. However, Lundgren noted that there are 1700 helper insect species for every pest species. As field diversity is reduced, pests increase, and humans end up on a pesticide treadmill. Lundgren spoke of the ecological disaster that followed the widespread use of DDT, which at first seemed as if it was the answer to a host of problems. It was cheap, had low mammalian toxicity, killed many insects, and gave control back to humans. At a time when insects through disease killed more soldiers than bullets and bombs, soldiers were sprayed and people put DDT on their babies to keep the flies away. “It was an insurance policy against any insect problems that might be ailing us,” said Lundgren. But the downside of DDT use soon became apparent. It has been linked to human health problems such as birth defects, breast cancer,
diabetes, and brain problems. It damaged predatory birds by weakening the shells of eagles, hawks, and falcons. Forty years after the chemical was banned, it can still be found in fish samples. And insects fought back – target insects, such as mosquitos, developed resistance. Integrated Pest Management was born in 1959 and involved using more than one strategy to combat insects. Natural enemies, resistant hybrids, adjusting planting dates, biological control, and host plant resistance were used in combination to control insects. Insecticides were recommended only as a last resort after all of the other methods had been exhausted. 2005 saw a new age of insecticide use as seed companies began treating seeds with systemic insecticides. Young plants could now take up the treatments from the seed in order to better resist insects. In spite of the fact that many genetically modified plants were developed to reduce the need for insecticide, use actually spiked in 2007 and 2012 saw even higher rates, said Lundgren. Lundgren questioned why soybean seeds were treated in this way, considering that aphids were their main insect problem. His research eventually showed that soybean seed treatment did not affect aphids at all. The yield in both treated and untreated plants was the same – largely because the systemic insecticide was gone by the time the aphids were a problem. However, the plants were toxic to aphid predators – so there were fewer natural controls left to help the plant. Likewise, in sunflowers, the neonics applied to the seeds actually made the plant less able to defend itself by killing predatory insects. “Neonics are a tool – if you overuse any tool too much, that is just a bad business decision and the science is there to support that.”
To view Dr. Lundgren’s complete presentation go to www.ifao.com.
Machinery
By Scott Garvey, CG Machinery Editor
Photos: John Deere
John Deere’s long-awaited four-track tractors were finally introduced to farmers in August.
New tracks from Deere The four-track John Deere 9RX tractor makes its official debut t a dealer convention way back in August of 2014, John Deere gave farm media a glimpse of what was then its pre-production prototype 9RX tractor, a 9R Series articulated model that rode on four tracks instead of tires. It made me ask, why break with standard practice? Why reveal a machine not yet ready for production?
The 9RX models also get a new cab suspension system to provide a smoother ride. 6 country-guide.ca
The reason, according to Deere marketing staff, is that farm demand for a tractor in four-track configuration is so high, the brand wanted to reassure its dealers there was a green one on the way. The 9RX was the most talked about machine at that event, even though company executives made it clear no official release date had yet been set. Those same executives were also tight lipped about the tractor’s specifications. Fast-forward to August of this year and the tractor made its second appearance at a media event, which was held at Deere’s Waterloo, Iowa, plant. This time, however, after the 9RX rode into the light, it wasn’t quickly ushered back into hiding. This was its official public debut, and it’s now ready for the assembly line. There are four models in the 9RX line, spanning a horsepower range of 470 to 620. The two smaller models (the 9470RX and 9520RX) get Deere’s own 13.5-litre PowerTech diesel, while their two bigger brothers (the 9570RX and 9620RX) will rely on a Cummins QSX 15 litre. Like the other 9R and 9RT (two-track) models, the 9RX tractors get the brand’s e18 powershift transmission with Efficiency Manager. That system provides automated control of the engine and transmission combination to improve power delivery and fuel efficiency. October 2015
The track modules use Camso 30- and 36-inch rubber belts. Deere is offering 30- and 36-inch Camso rubber belts on the 9RXs. In its press release announcing the tractors, the company says, “The engine powers a large-diameter drive sprocket and drive lugs that, along with optimally placed idlers and mid-rollers, work to deliver exceptional horsepower to the ground with less track slippage.” “The 9RX has a superior undercarriage with a positive-drive track system that effectively delivers power to the ground,” said Jerry Griffith, John Deere product marketing manager for its 6-9 Family Tractors in the press release. “It features the outstanding comfort of
our CommandView III cab with a new cab suspension system for improved ride quality, and it is designed with integrated performance features already available on our 9 Family of tractors.” The tractors also get a redesigned hydraulic system, which includes up to eight SCVs and delivers a standard 58 gallons per minute (220 litres) of flow, or an optional 115 gallons per minute (435 litres). “It easily meets the speed and high hydraulic power demands of the large implements our customers often use in the field,” Griffith said. Deere also announced in August that it has struck a deal with Quebec-based
Soucy Track, so green dealers will retail that company’s S-TECH 012P track modules as a dealer-installed option on 12- to 24-row NT planters. “This agreement will allow our dealers to provide a track configuration on all 1770NT and 1775NT planter models equipped with hydraulic drive or electric drive,” said Casey Dray, product manager, John Deere Planter Works. “This will increase flotation and optimize planter performance when operating in more difficult conditions.” Changing the planters from tires to tracks is about a three-hour job, according to Dray. CG
SAVE THE DATES FOR
Tuesday & Wednesday
January 5TH & 6TH, 2016 Registration opens November 2nd, 2015 w w w. s o u t h w e s t a g c o n f e re n c e . c a October 2015
country-guide.ca 7
“Make it rain” whenever you need it to.
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review
Why nice guys do finish first By Maggie Van Camp, CG Associate Editor
Give and Take: Why Helping Others Drives our Success By Adam Grant Penguin Publ.
dam Grant’s approach to business relationships seems counterintuitive, like it would make you a suicidal little fish in a tank of big, hungry fish, but Grant sets out in his business bestseller Give and Take to prove that good guys really do finish first, eventually. Do you believe it? Grant is no New Age self-helper. He’s an internationally respected professor of management at the prestigious Wharton School of Business, and his theory is that people approach relationships with a choice of three mindsets — to give, to take, or to match. Some of us start by asking, “how can I contribute?” Others start with, “how much can I get out of this exchange?” Most people are what Grant terms “matchers.” We expect our kindnesses to be returned, we like win-wins, and we think fairness is very important. But then there are takers among us who try to extract as much as they can out of every situation, and there are givers, who shift their frames of reference to the recipient’s perspective. Most of us will think we know which personality type is likely to succeed in business. We’re so sure, in fact, that we even change our own behaviour, Grant says. “Although many of us hold strong giver values, we’re often reluctant to express them at work.” Basically, we think it’s risky to seem a pushover. Yet the book points out some unexpected twists that impact high-level business thinking. For example, takers can tend to get sucked into bad decisions, essentially throwing good money after bad because they have a harder time accepting failure and can’t hear the feedback as quickly and efficiently as givers. Of course, Grant also has his quotable quotes. “Success doesn’t measure a human being, effort does,” he writes. Or, “Givers advance the world. Takers advance themselves and hold the world back.” As a journalist, I’ve had the pleasure of interviewing many humble business leaders, so the chapter describing what Grant calls the pratfall effect rang very true for me. Essentially, it says that when experts or leaders act more vulnerable, they appear 10 country-guide.ca
more human and approachable, instead of superior and distant. At one point Grant does concede that there’s a time and place for leaders to be perceived as powerful and strong. However, he quickly adds that in teamwork situations, this approach can often deter people from contributing. Similarly, he says givers tend not to negotiate as strongly as takers and matchers, but find better solutions by seeking advice and asking questions. Which leads to Grant’s discussion comparing doormat givers to successful ones. Once again, it’s your approach that makes all the difference. Giving without regard to your own needs causes burnout and in the end isn’t as successful. He even goes on to prove that giving without form or limitations isn’t as fulfilling. It turns out that if you plan your giving, you can actually give more sustainably. By chunking your giving into certain time frames or confining your giving to specific causes, you actually energize your giving and be more successful with it. He goes a step further and actually quantifies the ideal giving quotient, citing several studies showing that people who volunteered about 100 hours a year are happiest. However, it has to be a choice, not an obligation, and it has to achieve something. It’s the improvement that givers really crave. Grant also says givers tend to be hard working and that they love to give to people with grit. Those are the folks who stand up to challenges and persistently work their way through them. But it’s also about being thoughtful instead of too trusting or too timid. Grant says givers need the ability to screen out insincerity and to not confuse being agreeable with being genuinely kind. It’s also true, he warns, that there’s a fine line between giving and clever matching, although the book struggles to prove any difference. Grant concludes with outlines of several giving projects, plus websites and initiatives to create an environment of giving as well as techniques for learning how to be a better giver. It turns out that sometimes you just have to ask and people will give. His book is an enjoyable easy read, maybe blurring the lines between how community and individuals operate, and between social science and business. But (I know there’s a joke in here somewhere) this book would be a great gift for Christmas. It’s the message of the season, but told with business attitude. “If you spend the money on yourself, your happiness doesn’t change,” Grant tells us. “But if you spend the money on others, you actually report becoming significantly happier.” CG October 2015
business
hold on tight The global economy is a mess. Not even Errol Anderson knows where the pieces will all fall. What’s a farmer to do? By Gord Gilmour, CG Associate Editor uckle up. Commodity markets look to be in for a wild ride. China is experiencing its first major setback since its market liberalization began. It generated 40 per cent of global economic growth last year, so this is troubling. If its engine is faltering, everyone is going to feel it. Market analyst Errol Anderson tells us commodities are likely to be among the hardest hit because they’ve been among the biggest beneficiaries of China’s growth. Iron ore, copper, steel, coal, grains… all these building blocks of a modern society have been in high demand, translating into investments that have grown supply. With demand dropping, the future is unclear. Anderson says he doesn’t want to be an alarmist, but he’s cautioning producers to do what they can to protect themselves. There will be opportunities for good marketers, but they’ll be fleeting.
COUNTRY GUIDE: What’s actually happening in China? Errol Anderson: You just have
to look at the actions of the Chinese government. They’re clearly very concerned about the slowing economic growth across China that has been occurring for the past two years. In mid-August, they devalued their currency three times in a single week. This is a historic move. They’re doing everything they can to keep their factories going, to keep their exports moving and keep their people employed. And this may be just the beginning. It may take several years of economic restructuring that will heighten market uncertainty for producers, exporters and manufacturers. This situation will definitely impact global commodity markets. The actions of the Chinese government could set the stage for the threat of a trade war. We’re already in the midst of a global currency war, though central bankers certainly don’t want to say those words. It’s called stimulus by the central bankers. It’s excessive money printing and a race for the bottom in currency markets. Every country wants a cheap currency to kick-start their exports and drive demand for factories and jobs. It’s happening right
October 2015
now. Global currencies are being devalued around the world, and the U.S. dollar has strengthened because of that. But even the U.S. is starting to feel the effects of increased global competition. Its manufacturing sector is under real pressure. In China, they’re basically getting an education now on the volatility and economic swings of capitalism. They’ve experienced the good parts over the past 25 years or so with dramatic growth and creation of wealth. Now they’re experiencing a setback, and it’s going to affect a lot of things including how they do business. It’s going to be very interesting to watch. Essentially what you have in China is a controlling government that is seeing a taste for free enterprise among its people. It’s a situation that is a bit perplexing and even frightening for them. Certainly these are uncharted waters.
CG: What is this going to mean to a Canadian farmer? EA: Demand is king of commodity markets once again, not supply, and that’s going to require a new attitude towards marketing for Canada’s farms. If you go into this new economic reality believing a market owes you something and that profits are always part of the game, it’s not going to work out very well for you. You might say, “I got $13 per bushel for my canola last year, and I want it again this year.” With that attitude, you might miss selling canola profitably at $12. Continued on page 12 country-guide.ca 11
business Continued from page 11 Selling your cash grain into a falling market can be like chasing a rabbit. Falling markets often move very quickly, and you miss a solid profitable opportunity, so you may end up selling that canola at $8 or $9 per bushel. Canadian farmers tend to focus on the supply side. Our weather conditions affect local supplies, but they don’t move a global market much. And often farmers fail to understand this disconnect. Also, commodity markets in general are feeling the pressures of global deflation, and in a deflationary environment, demand is king of price direction. This is a giant economic cycle, and it could take a while, maybe a few years, before economies regenerate and rebalance the law of supply and demand. But for now, deflationary pressures have taken control of the commodity world. This is a fairly substantial change in market mindset after the past few buoyant years in farming. But it is an unavoidable situation tied to the bigpicture global economic cycle. I have some solid economic contacts in places like Malaysia. They all expect the commodity price meltdown and deflationary pressures right now will take some time to work through, perhaps two to three years of a soft patch. I don’t want to sound all doom and gloom or like it’s hopeless, but this is the reality markets are now working under, in my opinion. As a producer, you want to be prepared for it and be able to move decisively when opportunities appear. The profit door will open. But it may slam right back shut. You’ll need to be ready and have a plan in place.
CG: What are the implications for a farmer planning a marketing strategy for this year? EA:
You’ve heard this before, but growers need a plan. A plan is essential to keep egos and emotions out of the decision-making process. Know your cost of production, know what a profitable price is, and be ready to take it when it presents itself. Back in my days with Alberta Agriculture, our focus was promoting the concept of trying to market in the top third of prices every year. Now that might sound a bit esoteric — what’s the top third, after all? But what was really 12 country-guide.ca
said is that growers should aim to sell for a profit, rather than trying to hit the peak of the market. Over the years, I’ve seen a lot of people try pricing at the top of markets, but few succeed. It’s really hard to predict the top of any market, and most times you only see it in the rear-view mirror. The most likely outcome is that you’ll pass over opportunities for profit and wind up selling into a falling market. And the end result is less income than if you’d made a plan, been disciplined and stuck with it. Think about it in terms of baseball. Everyone loves to see a home run. It’s exciting, the fans roar, the player runs around the bases, there’s a big celebration at home plate — that can be pretty heady. Hitting the top of the market is a lot like that — exciting and a bit seductive. But the funny thing is that home runs won’t necessarily contribute to the team getting to the World Series. What makes that possible is consistency. Reliably getting on base, hitting singles and doubles, game after game after game, throughout the year. I think marketing is the same, and more farmers should think about taking a “Moneyball” approach, if you’re familiar with that concept from the book and film, where you build a winning team around journeyman players, not stars. Growers need to start their marketing plan well ahead of the combine — months ahead — and scan for those pricing opportunities. If you see an attractive futures price or basis, you can lock that in. I would start small and scale up. Then closer to harvest, when a grower has got a clearer idea of what actual production may be, forward pricing can become more aggressive. Of course there’s the issue of production risk. This is where a commodity trading account can add horsepower to a marketing plan. Put options allow you to lock in a futures selling price for a predetermined premium and in that way act as a price insurance program that you manage yourself. There are no predetermined rules, which are the downside of government support programs. Put options offer growers a lot of flexibility in a marketing plan. This tool offers price protection without production or delivery obligation. But you’ve got to understand them as insurance. Some farmers understand this strategy, others don’t.
CG: You’ve occasionally mentioned “managing” basis contracts — can you explain that a bit more clearly? EA: Basis contracts are very valuable tools, but they have some drawbacks, and perhaps the most crucial one is that they can encourage procrastination, because procrastination can be deadly, costing a grower both money and time. And if basis contracts are not managed, pricing opportunities can be missed. Also, holding a basis contract too long may eventually force a grower to consider rolling these contracts forward into another futures month. A roll adds time, but does cost the grower some money. I am really not a fan of incurring the expense of rolling basis contracts. There are other options you can use at this point, and I do suggest them to my clients — strategies like pricing the contract and buying a call option to replace cash grain sales. These calls will increase in value should the futures increase. And they are a lot less risky than storing grain unpriced in the bin. The bottom line for dealing with basis contracts in my opinion is: don’t roll them into another month. Enter into them with the intention of executing them and pricing them during the term of the contract. You really want to get in and out within a reasonable time frame and not leave them lingering. Have a target price in mind and then execute them. If you are still bullish, use other tools in your marketing tool box to reopen your cash price ceiling. If you don’t, you’re going to fall victim to procrastination, incur fees and potentially sell into a falling market — sort of a death of a thousand cuts. CG: It’s easy to say “wait for profitable opportunities to price grain” but as we’ve discussed in the past, oftentimes there are bills coming due and other imperatives. How can a farmer reconcile the two? EA: This really speaks to the importance of knowing and using your farm financial situation to set marketing objectives. october 2015
business Yes, there are going to be times when you need cash flow to meet debt obligations, but that doesn’t mean you have to panic sell. You can plan for these needs. You’ll know when a bill is coming due or when you have to make a machinery or land payment, and you can schedule sales for these, perhaps using some of the available tools from your local grain buyers. For example, should you see an attractive rally through spring or summer, this would be an opportunity to sign a deferred delivery contract, especially if fall basis levels appear attractive. And if you sign a deferred delivery contract, you are also effectively reserving space for new crop delivery. And this ensures that the grain delivered early fall is done at profitable levels. This gives you timely cash flow to meet those fall bill payments. And if you are still bullish and want to reopen your price ceiling into the winter market, this may be time to purchase call options to replace your fall cash sales. This strategy injects cash flow at profitable levels, and if you want to
speculate on even higher prices, there are strategies in your marketing tool box that can be utilized through your commodity trading account. But if you are caught selling off-combine to meet financial commitments, this is really marketing by default. I hate it when that happens — absolutely hate it — because then you’ve lost control.
CG: What are some of the things that can derail pricing objectives? What can growers do to stay on top of these issues? EA: Having unrealistic price expectations is a definite problem. It’s like believing the market owes you a certain price when the hard truth is global buyers don’t care about costs. That’s a tough one. But you just have to take one look at other commodities like crude oil, or coal or copper production or coffee to see how this plays out. Buyers of commodities do not care about production costs. Letting your
feelings and ego get involved prevents you from making good, sound business decisions. You need to understand that markets will change, and you need to change with them. The biggest unknown that none of us can predict is how the current global economic situation will play out. It has definitely slashed commodity prices worldwide. In one way, we in the grain sector actually have a slight advantage in that we’re playing an outdoor sport — by that I mean a lot of things can affect supply or at least the perception of supply, and this is where we will trigger pricing opportunities through fundrelated buying rallies in the futures. Compare that to a commodity like coal or steel, where there are far fewer production disruptions, and therefore during periods like these, fewer opportunities to price for profit. Everyone in this industry will certainly be watching how things unfold with great interest over the next few months. Our next discussion in a few weeks could be an interesting one — there will be lots to talk about. CG
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business
Freedom 52
What’s the right age for Mom and Dad to step back? It might be a lot younger than we have traditionally thought By Maggie Van Camp, CG Associate Editor t is an early fall afternoon, and while their four young children bounce across this picturesque New Brunswick dairy farm, 35-year-old Joas van Oord and his wife Lisa talk about their dreams. In the barn, that same afternoon, the farm’s 58-year-old patriarch, Maarten van Oord shows off the farm’s new robotic milker, and as he does so, he reveals the contentment that underlies his fine streak of enthusiasm. Later, as Joas walks down the feed alley, he tells a story of succession and retirement, including not only his father’s but how he too is already planning retirement for himself. As he talks, his 55 milk cows calmly chew their cuds, waiting to go into the new robotic milking station and produce an impressive average of 39 kgs a day. The quiet, though, is deceptive. This farm may be idyllic with its cows and its tree-covered hills, but it is humming with business smarts and energy. The van Oord family made their last intergenerational transition a mere eight years ago, when Joas was only 27 and his dad in his early 50s. Now it's time for Joas to look ahead. “My goal is freedom 52,” says Joas, chuckling a little at the slogan stolen from the advertising campaign of the 1980s. “I want to be able to retire about when my dad did.” In farm terms, that’s early, of course, but he also believes in an early start, somewhere between 25 to 35 years old, depending on the individual. “You need the energy to go at it, and need a long time to pay down debt,” Joas says. In 2003 Joas graduated with a degree in agricultural economics and he expressed an interest in taking over the farm, after years of working with his dad and doing relief milking. His four siblings weren’t inter14 country-guide.ca
ested and it seemed like a good fit. But it was too early. Maarten was only 47 at the time and felt he and his wife Caroline needed three more years to save up enough to retire. That’s because five years earlier their barn had burned down, 46 days after they had finished paying off the mortgage on the farm. They had been debt free for less than two months. Although it was a financial setback at the time, rebuilding was a chance for Maarten to design a barn to operate as efficiently as possible for the 60-cow milk herd, and also to make it easier to adopt changes going forward. Joas explains their goal is to match the facilities to the quota, land holdings and labour force, relying on improved production and cost control to push to the next level. This way, they don’t have to hire any staff while keeping their total animal numbers below 100. It’s a balanced, low-cost-system approach, used by many smaller farms to counter economies of scale. Currently, Joas is down to milking 55 cows to fill 77 units. Although the farm owns 785 acres, only 150 acres are workable and they rent an additional 37 acres. They grow all their own feed (corn silage, grass and grain) and add some supplement. They’re also shifting from natural grasses to seeding higher-protein forages. “We try to match the equipment with the land, the cows, quota and labour,” says Joas. “I also try to have the farm’s business efficiency maxed out.”
Getting started means getting out Instead of coming right back to the farm after graduation, Joas and his new wife, Lisa headed to B.C., and while Lisa completed a two-year program in horticulture there, Joas worked at a ski resort for a year and later found work with Chilliwack farmer and serial entrepreneur Bert Tuytel. October 2015
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Tuytel moves through farming enterprises, expanding and selling according to profits and asset values, with individual enterprises including chicken, dairy, cedar trees and ET show cows. Having a mentor like Tuytel taught Joas about risk management, and also about looking for opportunities. “He’d risk everything and jump in,” says Joas. “Bert taught me how to pay attention to details and always ask what else you can do with your assets.”
“ There are times in farming when you just have to step up,” says Joas When it was time for Joas and Lisa to come home, it didn’t take them long to reach an agreement with Maarten. Within one year of their starting the process, their lawyer had set up a corporation and a shareholders agreement, and had transferred the assets. Behind the structure and dollars was trust, and it was guilt free. Maarten had not grown up on a farm in Holland before he immigrated to Canada and bought the rundown place outside of Fredericton, New Brunswick in the early 1970s at 21 years of age. His perspective is that family needs to be happy, first and foremost. “Every day my dad says, don’t dairy farm for me,” says Joas. At 52 years old, Maarten sold the farm to Joas based on an FCC evaluation that put quota at $19,000 to $21,000 per unit (they simply agreed to split the difference in the price to $20,000), plus 130 workable acres, barn, house, machinery and the livestock. The farm built a new house for Maarten, about 10 km away. Joas borrowed $1.1 million from FCC. “But I paid my mortgage off,” says Maarten. Subsequently, dairy quota values soared up to $30,000 a unit until the P5 boards (including Ontario, Quebec, Nova Scotia, Prince Edward Island and New Brunswick) put a quota price cap at $25,000 per unit. Starting this past August that cap dropped to $24,000. Verbally, Maarten has also agreed to work for free for 10 years, doing all the cropping and mechanical work, and leavOctober 2015
For Joas and Lisa, a clear retirement goal provides a framework for decision-making all through their farming career.
ing the management and financial decisions to Joas. Although he’s at the farm working every day, and they don’t always agree, father doesn’t criticize or undermine his son. There’s respect and trust between them. “Right away, Dad said: ‘The books and cows are yours,’” says Joas. This agreed labour term allowed Joas to do some forward labour planning and it allowed Maarten to think about how retirement will look. It’s giving him time to ease into retirement and take up new interests. “I don’t want to be hanging around bugging anyone,” says Maarten.
Farm ownership transition is often the most stressful times of a farmer’s life, says Len Davies, Davies Legacy Planning Group Inc. But it’s so different now compared to when previous generations of farmers retired. A lot of farming parents maybe knew one millionaire when they were young, and now they are all millionaires. It works better if you allot some time to make this adjustment. “Holidays and hobbies can become habits,” Davies says.
Continued on page 16 country-guide.ca 15
business Plan for retirement early
Continued from page 15
Despite examples like the van Oords, farm adviser and succession planner Len Davies finds that the proactive approach to retirement among farmers is still very rare. With the cost and scale of farming assets required today, there are many people who want to retire or pass on the farm, but simply can’t afford it. “If the successor is 50 and the child is 21 and you’ve got debt, you’re in a better position to start some planning process than if the successor is 30 and the person retiring is 60,” Davies says. It’s not all about decreasing the tax implications of transitioning ownership. Nor is it all about debt or having enough assets. “First,” says Davies, “you need to figure out what you’ll need to live on.” For that, Davies has a software program to plug in the information. In an hour, he can have a pretty good idea of what the future can look like with pensions, investment income and realistic offfarm living expenses. Nor is Davies alone. Most financial planners can help you do this, if you ask. But Davies says you should start asking younger. “From the time you’re 55, update this every year so you can talk about it with your spouse and truly understand it,” says Davies. “Every time you do it, you’ll get more comfortable with the idea of retirement and what it will look like for you.” It’s also easier to adjust your plans and adapt to change when you know where you’re going well in advance. By starting to figure this out early, it will give you a realistic time frame for building your savings and off-farm investments, and it will also give you more choices in how the farm can support the retirement plan and succession. For many farmers, planning for a longer time also allows for an adjustment to the power shift, from being at the centre of every decision to being peripheral and considering others’ needs, even if they’re beyond the farm. Many spouses have different dreams and priorities, such as travelling or living in town. Some farmers have a difficult time giving up all they’ve ever known and the very core of their self-worth. “If what I do is who I am, then what am I without the farm?” they ask. But, as Davies and other retirement planners point out, having a plan can help you create your own answers to that question, in ways you otherwise might never have imagined.
Another trend Davies sees is the shift in the younger generation’s approach to work-life balance. “It used to be that you farmed and the family took care of itself, but now family is a priority.” With the vast majority of Canadian parents both working, there’s been a shift toward spending quality time with their kids and their kids’ activities. “Parents are shocked when their son will shut off the tractor to go to his kid’s ball game,” says Davies. Through his experiences leading the Young Farmers group in New Brunswick, Joas has heard many horror stories about farm transfers. Most problems start with the older generation either not saving enough off farm for retirement and succession or letting greed and control take over, he says. Davies often sees the opposite problem. Many older farmers worry too much about whether their son or daughter will make it farming, so they tend to short themselves. He recalls a farmer who was living in a lean-to built on the machinery shed, giving a $2-million farm to his son. “If the next generation gets something for nothing, then it’s worth nothing to them,” says Davies. “Someone is going to sell the farm someday.” The process has to be balanced without shackling so much debt to the younger generation that they can’t expand. This is when having a third party crunch some numbers can remove some of the subjectivity. It helped the van Oords that Maarten has another non-farm income source so he could give Joas a break on the price of the farm. In partnerships, having off-farm income and savings can cause inequities for retirement and succession planning, and everyone needs to be aware of these factors early on. For example, if one brother’s spouse has a good pension and the other brother’s wife worked on the farm and has no pension, the farm might want to make retirement investments on her behalf. Another idea to consider with multiple shareholders is to include a trigger in the shareholders agreement stating when growth gets frozen. Otherwise, for instance, a brother-uncle might hang on forever and glean the growth from a succeeding nephew’s effort. If you define
16 country-guide.ca
Maarten provides labour, but knows his job isn’t to call the shots.
“ If the next generation gets something for nothing, then it’s worth nothing to them,” Davies says those points earlier in the shareholders’ farming careers, it’s easier to decide, says Davies. The van Oord farm bought a lifeinsurance policy on Maarten for the other siblings instead of involving them as shareholders. Yvonne Thyssen-Post, farm financial adviser based in Nova Scotia says that it’s better to not include non-farming shareholders. “If they are not involved in the farm, they should not be a shareholder,” she says matter-of-factly. Joas believes all farmers should continue to ask themselves what they want from their farms. “Right now I want to be able to make a living from it, to raise my family and save enough money off farm to retire on,” says Joas. He also wants to be able to give the farm to his kids, although he realizes that his small farm likely won’t be enough to sustain the next generation, and that in another 30 years they’re going to need to O c t obe r 2 0 1 5
business build a new barn. “This is going to be just a stepping stone for them,” he says. Although they continually reinvest in improving the farm, they also make sure to include off-farm investments. Joas and Lisa are creating wealth outside of the farm by investing in non-farming land via waterfront property. “There are times in farming when you just have to step up,” Joas says. Additionally, they reinvest $1,800 a month farm income in a very secure insurance-investment program that they’ll be able to use for retirement. This amount is about what he’d pay out for debt if they’d maxed the carrying capacity of their dairy farm (30 to 35 per cent). “So it’s like a mortgage payment and soon you don’t even notice it,” Joas says. Joas also carries critical illness, disability, dental and medical insurance. “Insurance has to be a major pillar for succession planning, and it’s an automatic way to put money away for retirement,” he says. “Start planning for succession the first year you start farming,” Joas adds. “Then it’s just part of the process.” CG
Shareholder agreements Develop a shareholders agreement to help solve the “what ifs” of death, disability, disagreements and divorce. “If you don’t have the business structure laid out, it’s like slipping in the mud,” says Yvonne Thyssen-Post, farm financial adviser from Nova Scotia. Having a legal structure to deal with these situations lays out a pathway to follow. Of course, you also want a loving family. In these situations, it is a blessing. Yes, family and business are two separate things, but having the business details worked out can increase the odds that you’ll maintain a united, loving family because you’ll avoid much of the confusion and many of the complications that can turn into landmines. With succession, these can be multiplied along generations, over many decades. Thyssen-Post says parents really need to think long term and should try to
look for all possible impacts that succession can have on your family. Don’t leave out family dynamics when looking at the possibilities. How would Miss Bossypants react? Does someone have the tendency to turn to alcohol, or fall into depression when things go wrong? Does one sibling have a strong competitive nature? Is anyone a control freak? Next, look at possible scenarios and how the shareholders agreement will manage such situations. Part of a shareholders agreement is a buy-sell agreement. This tells you how the shares are going to change hands, and it does things like lay out timelines. Make sure everybody knows what it says and signs off on it, says ThyssenPost. You will still likely need patience and compassion, but at least everyone knows what needs to get done in an emotional situation.
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country-guide.ca 17
business
The young are
on board
In Ontario’s Northumberland County, young farmers make up the majority on many commodity and farm boards. Here’s how we do it By Amy Petherick, CG Contributing Editor
18 country-guide.ca
With only 75 farmers under age 35, our county boards should be even more starved for young members than those in other counties and districts across the country two per cent of Ontario farmers reside here, and those who do aren’t exactly young, being, respectively, 2.3 and 1.8 years older than the average Canadian and Ontario farm averages. With only 75 farmers under the age of 35 in Northumberland, youth representation in the general farm population is well below the eight per cent provincial average. Continued on page 20 October 2015
Photography: deborah deville
here’s nothing like an unexpected dinner invitation to get the attention of a person who is normally responsible for daily meal preparation. The invitation arrived by text, and it didn’t take long to figure out whether to accept. Accept first, I said. Ask questions later. When I did ask the question, I was right to think there might be a reason. “Be ready to explain why our executive is so young,” was basically how the next text read in response. It was time to switch to voice. “Well, someone told the provincial association we have a lot of really young directors on our board, and now they want to meet with us,” explained Ian Laver, president of Northumberland’s Soil and Crop Improvement Association (NSCIA). I wasn’t really free that week but yes, I promised, I would be there anyway. Not that I had any idea how to explain youth engagement in Northumberland County. But anyone willing to make a rare trip from the hub of Ontario agriculture through the city of Toronto deserved as many brains to pick as we could offer. Northumberland is an hour and a half east of Toronto on the north shore of Lake Ontario. Although agriculture is a significant industry here, Northumberland itself is pretty insignificant in national or even provincial terms. Located in the east end of central Ontario, our relatively large county wasn’t home to even 1,000 farms in the last census of agriculture, and two-thirds of these farms reported less than $50,000 in gross farm receipts. Break things down further and you get 221 cash crop operations, 179 beef farms, 83 dairy farms, and the rest are mostly listed as “other.” Less than
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Continued from page 18 Yet, 30 per cent of the directors currently serving on the NSCIA are under the age of 35, including the entire executive falls into that class. On the Beef Farmers’ board of directors, about 40 per cent are around or under the age of 35 and half of the Northumberland Holstein Association’s directors would be under 35, with 85 per cent certainly less than 40. Then there’s also Northumberland’s Dairy Producer Committee, with 70 per cent of its executive all young farmers. In other words, the Ontario Soil and Crop Improvement Association hadn’t noticed a fluke or some sort of coincidence, but a real trend that seems to be unique. It might have been a little ambitious to attempt to identify the root cause of a regional trend like this in just one dinner meeting, but as the evening progressed, some concepts emerged clearly. We, as young directors, take our initial cues from the family. Parents, grandparents, or other family members that we respect and admire have been directly responsible for initiating our involvement in farm organizations here.
Being exposed to so much youthful enthusiasm and contagious passion is good for the veterans too. “It’s great to see so many young people,” they say Many young directors recalled having little choice in attending their first annual general meeting. Some had been living at home at the time but the rest of us were well into building our own independent lives. Yet when families encourage or expect industry involvement here, in general, we seem to oblige by attending as requested. As a result, almost all young directors serving NSCIA are now second-, or even third-generation directors. But if directors attend their first meeting “just to keep Dad happy,” the consensus is that they keep coming back on the encouragement of their peers. You can test it for yourself in your own area by looking at where people choose to sit. When I think back to a number of local meetings held here last winter, new attendees tended not to stray far from the family, while the more veteran young participants often clustered around friendships. It seems I’m not the only one trying to make the most of every precious minute off the farm and if there’s no “fun factor” in it for me, apparently 20 country-guide.ca
I’m not alone in being more inclined to stay home. Maybe it’s because of the second jobs, or because non-farming spouses need more help with household chores and childcare, or because of the overscheduled children, but whatever the reason, the entertainment value of farm associations is now a big consideration for my generation. When the social value is there, and our time constraints are respected, we’re there too. If there’s also an educational opportunity, however, we’re far more willing to commit our time. Active directors are some of the first farmers to insist that local research is important, and many of them don’t wait for someone else to suggest an onfarm trial; they just set up their own. Spontaneous crop tours are common. Farm association meetings are an opportunity to share results or interim observations, and many people will say they don’t want to miss these meetings in case something important is shared. I always thought this was the same everywhere until I recently learned about the master’s research that Jeff Brick conducted while obtaining a degree from the University of Western Ontario. Jeff wanted to look at what motivates farmers to adopt good land stewardship practices, and through the course of his study, he has discovered that the value of education appears to be diminishing among young male farmers in parts of southwestern Ontario. “The people in the landscape appear to be very well educated but when you break it down by farm and non-farm, you start to see the trend emerge that farmers have a much lower formal education level,” he explained to me. “There are a shockingly high number of young males, running farms, who haven’t finished high school.” Jeff says he only measured formal education in his survey, so there’s no way to know what practical or informal supplementation these young men have pursued, and he certainly doesn’t believe his findings indicate farmers aren’t very good at what they do. He’s more interested in why these young men are forgoing formal education, and he hopes further work being conducted by other ongoing studies might reveal whether the phenomena is related to increased employment opportunities for farm youth. If that’s the case, it may explain why my peers are far more likely to be college or university educated. It’s only natural for a teen doing hard labour for little more than minimum wage to explore their options. Couple little competition for local scholarship money with relatively lower family farm incomes, and now pursuing a post-secondary education doesn’t look halfbad. Anyone who comes home to the farm after that brings new ideas with them and maybe even a new appreciation for learning opportunities. Ellen Hondl, an Alberta beef farmer with the Agricultural Youth Engagement Foundation, pointed out to me that when these people sit down together at a table, they will feed off one another. October 2015
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“Passion is contagious,” Ellen says simply. And she’s right. As we swap stories of the challenges we’ve overcome or are working through in planning farm succession, and as we talk about the isolation that can come with being a young farmer, we begin to feel driven to share our experiences with others for the betterment of the community, and no matter what the personal inconveniences, the conversation does become more passionate. When we meet, we leave the conversation more animated than when we started. It’s refreshing. It’s exciting. It’s
exactly why Northumberland County is embracing young directors. Let’s face it, the directors who are exiting their positions to make room for “the young upstarts” are not being entirely altruistic. They are coming to the end of careers that were challenged by peak interest rates, extended droughts, depressingly low commodity prices, the BSE crisis, high debt loads, and increasingly volatile markets. They’re tired. But not tired enough to become retired, so they’ve mostly stayed on as members and mentors for the young people they are nominating to leadership roles.
It turns out, being exposed to so much youthful enthusiasm and contagious passion is good for these veterans too. They get up and say with big smiles on their faces, “It’s great to see so many young people here at this meeting.” I’m never sure whether they say it as much to encourage us to keep coming back or to congratulate one another for getting us there in the first place. But if they keep speaking up so positively, this phenomenon is just going to continue to grow, and we might have to start warning new directors to be ready for more surprise dinner invitations. CG
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country-guide.ca 21
business
After the tragedy… It takes a combination of legal and financial preparedness on the one hand, and human understanding By Angela Lovell on the other to keep the farm together he Connery family thought that it was probably more prepared than most farm families for succession, and in many ways it was. But no one anticipated the sudden death of its two principal farming partners, or that the farm business would transfer to a daughter-in-law. When brothers, Doug and Jeff Connery died within six months of each other in December 2011 and June 2012, it was Jeff’s wife, Beth and their two children, Samantha (27) and Chris (25), who took the reins of the operation.
Unusual arrangement
For Beth Connery (centre), with Samantha and Chris, it’s been essential to recover from Doug’s death as farmers, and as family too.
“It’s an unusual arrangement because I am the daughter-in-law running the farm now rather than a child,” says Beth. “I enjoy the farm and the work, and producing food that goes straight from our field to people’s tables. But it’s a way for the farm to continue through the family.” Doug’s family wasn’t interested in continuing to farm, so that meant Beth and her kids had to make a fast decision. But it was a definite — and united — choice. “I asked the kids if they wanted to farm and they said yes. So I said, then we’ll farm,” says Beth. “I had two good managers, and the next day I said there’s a crop out in the field and we have to take care of it.” Ed and Bev Connery moved Connery Riverdale Farms from its location near the Red River south of Winnipeg to Portage la Prairie in the early 1960s, where the area offered land, water and a microclimate better suited to growing vegetables. Ed was an innovator, always ready to try new varieties and new technologies, and he had been instrumental in establishing the vegetable marketing co-operative, Peak of the Market. Today the farm covers about 1,000 acres, 650 of which produce asparagus, strawberries, broccoli, carrots and cooking onions, while the rest is in wheat as a rotation crop. Photography: Sandy Black
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A road map in place Following the decision by Ed (Jeff and Doug’s father) to go into politics in 1986, all members of the Connery family put wills and powers of attorney in place, and they had agreed upon a succession plan in 1986. Some 25 years later, that succession planning was to help them when tragedy struck. “We were fortunate because we did have some plans in place. There was a buy-sell agreement and everybody knew what it said and we all signed off on it a long time ago,” says Beth. “The documents were
October 2015
almost 30 years old, and they were by no means perfect, but they certainly provided a road map and a way that we could move forward.” The experience taught her, however, that planning documents, and especially wills, should reflect current realities. “If you’ve got children or if something’s changing in your life and you’re getting married or whatever it is, it’s important to get your will updated,” says Beth. “Review it at least every five years. Pull it out and read it.” Continued on page 24
country-guide.ca 23
business
10 tips
to help prepare for an unexpected farm death
Losing a principal farm partner can cause all sorts of very real and very practical issues and challenges for those left behind. Beth Connery found herself in the position of running the family farm three years ago when her husband, Jeff and his brother, Doug, who farmed together, died within six months of each other. Going through that experience has taught her and her two children Samantha and Chris how to prepare for an unexpected farm succession. She shares their learnings below:
Write everything down
Talk
Record everything that happens on the farm, whether it’s on an ongoing basis or at a minimum once a year going through the crops that you’ve grown, which varieties you tried, and what equipment you used. If you tried something new, did it work or not, and why? What was the weather like this season, and anything else that happened over the year. Information that only exists in your head isn’t much use to anyone else.
You have to do a lot of talking because a succession plan does not come together over three meetings. It requires a lot of discussion about how things will work.
Rely on others Rely on the people within your operation who know what they’re doing, and don’t be afraid to ask for help from family, other producers or neighbours. Ask questions if you don’t know something because someone is always willing to share their experience with you.
Have a current will
Discuss burial It’s not a macabre topic — and it makes it a lot easier for your loved ones to make the necessary arrangements if they know in advance what your wishes are. So make sure you talk about what you want to happen.
Make a list Make a list of important things such as life insurance policies, RRSPs, TFSAs, bank accounts, or other investments. Include policy numbers, contacts, and their phone number and email. Does the family know your passwords?
Make sure that everyone has a will and review it at least every five years to make sure it still reflects your situation and what you want to happen. Update your will whenever something changes in your life or there is a major event. Make sure that you have powers of attorney and living wills in place. Even if you don’t have a full succession plan, at least your will provides a road map for your partner to follow.
Know the finances
Have a succession plan
Talk with the bank about bank accounts. If they aren’t joint accounts, and you don’t want them to be, make arrangements with the bank so that you can access them, or you may not be able to pay your bills.
Have some kind of succession plan in place, and make sure that wills are on side with the plan. Talk to your lawyer or your accountant or other advisers for advice and a path to follow. If there is a buy-sell agreement, make sure everyone agrees to it. Anticipate any issues ahead of time and have a plan carefully laid out so you just have to follow the steps. Your goal is to create certainty for those left behind and to help avoid possible conflicts or questions.
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Have a working knowledge of the farm’s financial situation and bookkeeping system. Even if you’re not paying the bills and doing the bookkeeping on an ongoing basis, know which bank you deal with, who your lawyer is, who the accountant is, and how to pay the bills.
Make sure you can access the money
Allow Time for Yourself Losing a loved one is stressful. You will need quiet time for yourself. Allow yourself to grieve. You will not have the patience that you normally do, so you need to be kind to yourself and the other people around you. It's only by coming together that you can find the best path forward.
Continued from page 23
Lots to learn Beth had worked on the farm for 25 years in the office handling the administration, payroll, bookkeeping and human resources, so she had a good handle on the financial situation of the farm and also knew a little about the warehousing side of things. “Jeff was doing all the field stuff so I had a good idea of the rhythm of the farm, although I didn’t know the details of everything,” she says. One of the hardest things to deal with was the agronomy side of the business, admits Beth. “Getting back into the agronomics was difficult and even now I’m still learning,” she says. “But I think it’s a constant learning process because there’s always something new to learn about fertilizers and seed, and the way we’re treating things, and new irrigation systems. I had to get back into that mindset and look at those things again in a way I hadn’t in a very long time.” Beth, who had grown up on a mixed farm in the area was able to turn to her neighbours and family for advice, which was a huge help. “I’m blessed with a very large and extended family and friends, so if I needed something I could ask,” she says. “There were a lot of people willing to help and the other growers in the area were very generous when we had questions. Grandpa Ed and his wife, Bev, although they are retired, have also been really supportive and helpful. For me, just knowing that there’s someone there I can ask questions of makes it doable.”
Loss of knowledge A vegetable operation requires lots of people, which meant there were managers in place who took care of most of the immediate day-to-day things. But as time went by everyone realized that the farm had lost a huge amount of knowledge. The family puts more down on paper now, Beth says, but she admits this does take discipline.
Time to grieve Beth made certain that she found the time to grieve, and says this was one of the most important things she needed to do to help her carry on. “You have to allow yourself to grieve because if you don’t, it will come back and bite you when you least expect it. I quite deliberately made sure I took time for myself,” she says. “My O cto b er 2 0 1 5
business family and the farm bunch were very generous in allowing me to disappear whenever I needed to.” She had to resist the temptation to throw herself into the running of the farm and overwork herself and others. “Our harvest period is six months long. We need a start of the day and an end of the day because we know we’re going to be doing it for months,” she says. “I had to learn to pace myself as well.”
Talk lots and early Families need to make sure they have discussions about the future of the farm, and what everyone wants, and that they get plans in place as early as possible, because when a tragedy strikes, people are at their most vulnerable and it’s really tough to have to make decisions, says Beth. “It was very stressful… you’ll hear advice not to make any major decisions in your life for a year after a death like that, and I was making big ones within days. There was no way to avoid that, but if you’ve already discussed it ahead of time, and if you’ve thought it out, and have the plans in place, then the urgency isn’t there.” The Connerys’ next step is to work on the next succession plan, says Beth. “Now we need to figure out how we’re going to devolve this to the next generation, and how we’re going to put options in for grandchildren.”
Look for the joy As the family prepares for future milestones, the memory of lost loved ones is still with them, but Beth’s final advice is that it’s important to look for the joy. “It’s there even when things seem to be falling apart and darkest,” Beth says. “It’s there in the memories of the laughter shared and stories told and in the creation of new memories with friends and family… Our loved ones would have wanted us to live and share our lives, not mark time.” CG
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Not related
Farm hopeful Dustin Krahn gets no land, no equipment and no pay — but thanks to farmer Ken Wiebe, he gets opportunity
By Angela Lovell
Krahn (l) and Wiebe believe their approach could be adapted all across the country.
ou might call it a sort of succession plan in reverse. Young farmer Dustin Krahn isn’t related to Ken Wiebe, the established farmer who has found a way to help Dustin get a leg up. Meanwhile, though, Dustin is also helping Wiebe’s 22-year-old son, Zack, learn the ropes and get started in farming too. Are you still following? It’s a 10-year plan, with a time frame for Krahn to be working 1,000 acres with purchased land as a base for an independent farm operation on its way to becoming a bona fide commercial family farm. The plan itself isn’t that complicated, and everyone involved seems to think it could be a template for other beginning farmers across the country. But they also agree it does take commitment, great teamwork, and perhaps a more than ordinary amount of faith. In all, the 28-year-old Krahn and 53-year-old
Wiebe farm 5,300 acres of rented and owned land in south-central Manitoba, with the land spread across a rectangle between highways 3 and 23 from Plum Coulee to Miami. Krahn himself rents land all over the map, based on some reasoning that many other farmers will recognize. “It’s a 40-minute combine ride one way to some of our fields,” says Krahn. “Our area is very expensive to rent land in right now, and sometimes a 20-minute drive can bring it down to a price that you can afford to rent and make a decent dollar.” But where he’s different is that Krahn doesn’t own any farm machinery, and he doesn’t get paid for the labour he contributes to the Wiebe farm. To put it simply, Krahn rents all of his land — currently about 500 acres — and helps Wiebe farm the rest. In exchange, Krahn uses the machinery and infrastructure that Wiebe owns. “There’s no way with my small acres that I can afford to have stuff like tractors etc., and Ken knows that, so I provide labour and maintain the machinery and so on, and we work my time into a dollar value every year that I contribute to the farm,” says Krahn. “We don’t ever exchange money. It works out really well for both of us.” Each is responsible for their own crops, and each purchases his own seed and inputs, although they do co-ordinate their rotations to make it easier for seeding, spraying and harvest. Wiebe grows a lot of wheat and soybeans for seed production, while Krahn tends to grow more commercial crops.
His father owned a small farm and a flax straw business which he sold when Krahn was 10, moving the family to nearby Winkler. Krahn was always attracted to farming, however, and as a teen he began helping a friend who worked at a feedlot owned by Wiebe’s sister. When Wiebe’s hired man quit, he phoned Krahn to see if he’d like to come and work for him. Krahn had just been accepted into the ag diploma
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Photography: Sandy Black
Getting started on 200 acres
business
“ When you’re a small farmer,” says Krahn, “ every relationship has to be a good one.” Two months later the farmer phoned Krahn back and offered him all 300 acres of his farm to rent. He still farms that land today.
Relationships matter the most
With more farmers open to helping non-family members get started, Krahn and Wiebe know that others may use their model.
program at the University of Manitoba, but he started helping Wiebe nevertheless, working on weekends and learning how to harrow, drive grain trucks, spray and do other farm operations that he’d never done before. After graduating, Krahn got a job as an agricultural sales representative, but he still helped Wiebe whenever he could. Finally, eight years ago Wiebe asked Krahn if he’d like to farm full time. “I laughed at him,” recalls Krahn. “I said I’m not going to the bank asking for $3 million to start farming. I’d be the laughing stock of southern Manitoba.” But Wiebe had detected a passion for farming in Krahn, and told him that if he October 2015
could find 200 acres of land to rent, Wiebe would make a deal to get him started in farming. “He put the ball in my court. If I really wanted to do this, all I had to do was find 200 acres,” says Krahn, “but finding 200 acres of land in southern Manitoba is not that easy. It’s one of the most competitive parts of Canada for land.” Yet he did find that 200 acres, quite by chance when he was at a hockey game and overheard a bit of conversation in the stands behind him. “The guy was talking about quitting farming and maybe renting some land,” says Krahn. “At the intermission, I turned around and introduced myself and told him what I could afford to pay.”
“Because there’s no land between us, we don’t have to fight over which family member gets land or how things get divided up,” Krahn says. “We can just concentrate on farming the land the best way that we know.” One of the earliest lessons Krahn learned is that good relationships are essential. “When you’re a small farmer, every relationship has to be a good relationship,” Krahn says. “I need every acre I can get, so I want to keep the guys I rent from happy. The farmer I rented my first 200 acres from is like a mentor to me now. I still farm his whole farm to this day, and we go fishing together, and have built a great relationship.” Keeping your lenders and suppliers on side is just as crucial, says Krahn, because sometimes you need them to work along with you. “My banker has done huge things for me. There was one time where we had some lease payments due and the grain cheque wasn’t here yet and when I called him he said, no big deal, we’ll wait for the grain cheque to come in,” he says. “That takes a huge load of pressure off your back. You don’t want to burn any bridges in this industry because every farmer talks, and especially with Twitter and social media now it doesn’t take long for every neighbour to know what you did.” Still, it’s the business management side of farming that Krahn admits he often finds the most challenging. “The hardContinued on page 28 country-guide.ca 27
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Tips for your non-traditional farming agreement Across Canada, a growing number of farmers who want a next generation to take over the family farm is looking outside the family to find it. Through non-traditional farming arrangements, farmers who are approaching retirement can pass on their experience and knowledge so that young people who may have anywhere from some to no background in farming — but who definitely have a passion for it — can get started in the business. Below are 10 tips from Jacqueline Gerrard, associate consultant with Backswath Management at Morden, Man., to help a non-traditional farming arrangement run smoothly.
1. Have an agreement
6. Management decisions
Clearly articulate the agreement between each party, making sure expectations are spelled out. The best time to do this is when things are going well because everything’s fine until it’s not. Get help from a lawyer, professional management consultant, or other trusted adviser to ensure you have a strong foundation upon which to build your vision and goals.
Although each party may make their own decisions about things like crop plans, operating credit lines and marketing, there will be many decisions to make together, potentially including land rental or equipment purchase. Everyone must understand how the whole farm functions and how it performs in terms of profits. They must also understand the utilization of each party’s assets and investments, whether those are in the form of time or money.
2. Develop a clear vision and goals There could be a shared vision, but that doesn’t mean that each party can’t have different goals as long as they are compatible. Write it down because the vision creates a road map for everyone to follow. Be clear about what everyone wants from the arrangement and how that affects the whole farm.
3. Develop strategies Always think strategically and assess whether the things you are doing or plan to do will enhance the farm’s competitiveness, make best use of resources, and keep everyone on track towards achieving the vision.
4. Review Revisit the vision plan every year, even if the farming arrangement is working well. Review it to make sure it’s still within the scope of the original vision.
5. Flexibility There needs to be enough flexibility within the arrangement so you can change or adapt the vision and goals as you go along to accommodate different needs or changing circumstances.
7. Financials Set up the accounting system so each party uses the same ratios to track and measure liquidity and profitability. This will help ensure everyone understands how each component of the operation affects the whole. Talk to an accountant about any tax implications and for advice about how to structure the financials to allow for any “what if” scenarios down the road.
8. Put a number on it Put a value on each contribution that everyone agrees is fair.
9. Contingency plan What if things don’t work out? Perhaps part of the plan from Day 1 is to eventually separate out. Either way, a contingency plan is critical so each party can make that transition a smooth one.
10. Be prepared to rent Renting is probably the only real option for farmers starting out without assets and financial backing. Renting land as opposed to owning it makes more sense from a cash flow standpoint because it’s not tying up capital that’s needed to operate the farm.
est part for me is managing the money, because here you find yourself at 21 and you have to suddenly manage a $400,000 cash flow and be able to stick to the budget and make sure that there’s dollars to last for 13 months and be able to pay unexpected expenses when they come up as well,” he says, but he quickly adds that cash advance programs have been invaluable at helping him out financially. “They’re awesome. They’re the best thing that any small farmer can ever have,” he says. “It was the cash advance programs that gave me my start.”
Succession plans now and later With Wiebe’s son Zack coming into the family farm business after completing his agricultural diploma at the University of Manitoba, half the farm is going through succession planning and half isn’t. “Ken and Zack are dealing with succession planning, and I’ll be dealing with it 18 years from now,” says Krahn, who has already attended some succession planning meetings over the past two years because he believes you can never start too early. “It’s smart to deal with it sooner than later,” Krahn says. “You should start working on it when your kids are six months old.” Krahn and wife Ashton’s son, Kingston Crew, was 2-1/2 months old this past summer and already seems at home in the combine, so Krahn is hopeful there will be a second generation to take over, and part of his long-term plan is to have his own farm to hand down. “My 10-year plan would be to farm 1,000 acres and purchase at least one parcel of land and start my own farm that I can hand down to my kids,” Krahn says. “Right now I can make it work where I am. I’m not saying that it’s going to work here in 10 years. I might have to move somewhere else where land is more affordable and I can start purchasing my own equipment. But for right now, my 10-year plan is to raise my family down here and farm as many acres as I can get my hands on.” Wiebe, who is also a first-generation farmer who started out in 1981, knows Krahn’s plans and is right on board with them. “Ken has said right from Day 1 if Continued on page 30
28 country-guide.ca
O ctober 2 0 1 5
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
Looking to the Future by Suzanne Armstrong
F
arming is not the sort of profession that comes to mind as leaving a lasting legacy. Every year farmers need to produce a new crop. The work of feeding people and animals is never finished. On the other hand, there are many ways that farmers do leave a lasting legacy in the work they do. Stewardship is usually thought of as responsible use and management of those things we have under our care
today. It recognizes that we received them from previous generations, and that we have a responsibility to pass them on to the next generation in as good or better condition than when we received them. Stewardship of money on the farm can be as important a part of the legacy of good farming as the stewardship of things like soils or water. We inherit the accomplishments from the previous generations. We also have to deal with the unintended consequences of their actions as new information comes to light. As good stewards we consider the needs of today while also keeping the future in mind. Debt is a way of borrowing from the future for direct benefit today, just as investment is a way of putting off present benefits to save for the future. Balancing these two ensures survival today, and a prosperous future. Financial debt is a reality of farming today. There can be other
A general farm organization that is rooted in faith and guided by values
forms of debt as well. Depleting soils or allowing erosion on a farm is a form of debt to the future health of the farm. When farming practices negatively impact our shared water resources, that incurs a kind of debt against broader social licence. On the other hand, there are different ways to invest in the future as well. Building financial equity on the farm creates greater long-term stability. Care for soils is an investment in healthy farms today and into the future. Meeting societal expectations of farmers is an investment in the relationship between farmers and the broader community. As you look to the future on your farm, think about the legacy you will be leaving, not only in terms of financial assets, but also in terms of the health of your farm, and the relationship with the wider community and society that is fostered through good stewardship.
• 21 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 Continued from page 28 there’s a piece of land that comes up for sale and you buy it, there’s no hard feelings,” Krahn says. “His biggest fear is that he’s holding me back from pushing my boundaries. He’s not, but he doesn’t want to feel responsible that I let something go because of my contribution to this farm. But I don’t think I’d buy any land without his advice anyway.”
Krahn’s work for the Wiebe farm gets counted, but no cheque trades hands.
Part of the family
Krahn isn’t part of the family but he has such a close relationship with the Wiebes, he’s become almost like a big brother to Ken’s kids and calls Ken’s dad Grandpa, just like everyone else. It’s the open communication and strong relationship that has made the “marriage” work, says Krahn. “If we didn’t get along, none of this would be possible,” he says. “Ken and I are both married to the farm and we couldn’t operate without Zack now. He’s only six years younger than me but he brings such energy and eagerness to the farm.” It’s a complete contrast to many farm family situations where a son or daughter
comes in and is resented by other members of the family or employees who have been around longer, and a big reason for that is that everyone feels their opinion counts, says Krahn. Krahn knows many farmers who want to retire with no children who want to farm, so it’s feasible that other young people could have opportunities to make arrangements similar to Krahn’s if they
can develop a relationship with someone in that situation, and be willing to learn. That said, Krahn knows he lucked out. “I’m proud of how I came into this business,” he says. “I’ve been my own boss since I was 21 years old and there aren’t many industries where you can do that. As long as I can make a living for my family I wouldn’t change it for the world. I’m having far too much fun right now.” CG
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Soyguide
Soy wins health claim The label approval is seen as an important step toward increased Canadian consumption By Ralph Pearce, CG Production Editor
Soybean Guide, October 2015
T
he popular saying is that good things come in small packages, which exactly describes Canada in terms of its overall output as one of the world’s soybean producers. Because good things do come from Canada. In fact, they may even be great things, thanks to our capabilities at producing high-quality identity-preserved, non-GMO soybeans, as we have demonstrated over the last two decades and more. We have the expert producers who grow the soybeans, and grow them well. We have the infrastructure for segregation. And, after many years, we have a quality reputation among global consumers. Despite all these positives, however, Canada, unlike the U.S., has not allowed health claims that promote the benefits of soy protein in human diets. But that changed in March 2015, when the country’s agri-food value chain received Health Canada’s approval to recognize soy protein’s benefit in the daily diets of Canadians. Making the rounds of the Grain Farmers of Ontario’s “Spring Classic,” Soy 20/20 chief executive officer Jeff Schmalz was sharing the news, highlighting the journey that took more than three years to finally garner this important claim. The Health Canada decision covering the claim is eight pages long, but of particular importance to the IP sector, including producers and processors, are three key paragraphs, cited from the document, “Assessment of a Health Claim About Soy Protein and Cholesterol Lowering”: “The ‘daily amount’ referred to in the primary statement is 25 g of soy protein. This amount is based on the evidence
available concerning the amount of soy protein shown to help reduce cholesterol. In this statement, the percentage of the daily amount of soy protein provided in one serving should be rounded to the nearest multiple of five per cent. “The following additional statements could be placed adjacent to the primary statement, in letters up to twice the size and prominence of those in the primary statement: • soy protein helps reduce/ lower cholesterol • high cholesterol is a risk factor for heart disease • soy protein helps reduce/lower cholesterol, (which is) a risk factor for heart disease “Foods and ingredients eligible for the claim include soy beverages, tofu, miso, tempeh, natto, soy cheese, soy nuts, isolated soy protein (ISP), soy protein concentrate (SPC), textured soy protein (TSP) and soy flour (SF). Soy sauce and soybean oil are excluded from the claim because they lack substantial amounts of soy protein.” The claim is particularly timely. Statis tics Canada numbers indicate 39 per cent of Canadians between the ages six and 79 have unhealthy levels of cholesterol in their systems. Despite those numbers, Schmalz says navigating the specific disease risk-reduction claim has been a difficult process, since researchers are consulted for critiques and analysis. Although it took more than three years from application to approval, Schmalz notes that process is not out of line with other, similar claims applications. Continued on page 4
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Real work begins Now that the claim is in hand, the next phase starts with a three-year communications plan to reach consumers and help them better understand the benefits of soy foods. Knowing that Canada is a leading producer of food-grade soybeans can’t hurt either. The communications strategy involves four or five of the larger Canadian companies involved with IP soybean processing, with each company’s marketing department lending its expertise to the plan. “If we have a successful media plan, we’ll bring more consumers to the table, and that’s going right back to what gets planted in the ground,” says Schmalz, based at Soy 20/20’s headquarters in Guelph. “We have also applied for some government funding, which is going to give us the wherewithal to approach consumers. And then another part of the strategy is determining what we’re going to do on packaging for a soy milk or tofu container, and we’ve designed a new logo for that.” The overall objective is to grow the sector, of course. Production of IP soybeans has been relatively flat for the last five years (industry members suspected it may have fallen to just 20 per cent of total soybean production in Canada in 2013), and any growth has come from newer products and not the beverage sector. That’s the key driver, not just where the health claim is concerned, but as it pertains to the domestic soy food market. North American tastes tend to lean away from soy foods, known more for their “beany” taste than their health benefits. Another factor is more cultural, in that our diets don’t tend to include tofu or miso, or natto or tempeh. The easier sell on this continent is the flavoured soy-beverage category. There’s also the trend in protein consumption that’s been highlighted by various individuals during the last 16 years. World protein consumption, fuelled by rising Indian and Chinese demand, leads to a much more bullish outlook on protein. “We think that over the next 10 to 20 years, there’s going to be an almost unfettered, compound growth in the market because of the insatiable demand for protein,” says Schmalz. “And much of that demand will be coming from China and India because they’re also looking for our quality feed to feed their animals and get them to slaughter.” But in many cases within the agri4
food sector, a business has to learn to walk before it can run. David Hendrick, CEO and board chair of Sevita Foods, based in Inkerman, Ont., also notes there are currently no large-scale processors of food-grade soybeans in Canada. If one of the current processors steps up, particularly on soy beverages, this dynamic could change dramatically. “We want to remember the context of this claim — it’s a Canadian claim,” says Hendrick, who helped initiate food-grade exports to Japan in the 1990s. “We don’t want to get carried away that this is going to do something for us in China or Japan — it’s a domestic regulatory decision that’s potentially a very positive one in Canada.” In the early 2000s, when the U.S. came out with its health claim, consumption of soy foods rapidly increased. Will we start seeing higher consumption rates of soy
“If we have a successful media plan, we’ll bring more consumers to the table,” says Soy 20/20’s Jeff Schmalz foods in Canada? Hendrick says it will depend on the marketing and branding, which in turn needs to be focused on convincing Canadian consumers about these benefits. “If we do a good job on those two aspects, I think that this health claim will be a positive addition to all of the positive things attributable to food-grade soybeans,” says Hendrick. “I’m not sure the health claim will necessarily increase premiums, as processors need to compete in their sector. Whether you’re going to use those beans for Canadian end use, U.S. end use, or Japanese end use, essentially the premiums are within the same relative framework. Although he doesn’t think the health claim is going to mark that big a change in premiums, Hendrick is interested to see whether the demand and the market requirement increase. Hendrick says that perhaps the Can adian IP sector has spent too much of its focus on Japan. That’s a potential additional benefit of the health claim, encouraging the Canadian sector to stabilize its domestic opportunities, yet still be an opening line in discussions about increasing exports to other countries.
Processing pull One person’s potential is another person’s stumbling block, however, and Hendrick still points to the lack of a large-scale processor in Canada as a key restraint on the push for increased domestic consumption. That picture is the same whether it’s IP soybeans or a new wheat variety for Eastern Canada. It’s always easier to launch a product when part of the industry is pulling it through the value chain as a demand, rather than growers or farm organizations trying to push it through as a supply. But just as Hendrick is quick to identify it as a barrier, he also suggests there’s an industry pull being created with the health claim. “If you build it they will come,” says Hendrick. “The health claim has now been built by Health Canada and Soy 20/20, and now, if there’s an indication that the consumer is really going to change their habits and significantly increase consumption, then the infrastructure will come.” Right now, the focus of this story is centred on the health claim and the picture of the industry going forward. Does this move favour Ontario and Quebec (because they’re the primary production region for IP soybeans)? That’s likely a short-term fact. Could it help develop IP soybeans in Manitoba or the Maritimes? That remains to be seen. Hendrick insists the processing picture must become clearer first, then production may increase, whether you’re talking Ontario, Quebec, Manitoba or Prince Edward Island. But as Schmalz notes, Ontario and Quebec are the leaders in the IP soybean sector, and have been for years for one very good reason: agronomics. The g row ing season, e ven in wester n Quebec or eastern Ontario is much longer than on the Prairies, and that continues to be a major consideration despite thee dramatic enhancements in shorter-season soybean varieties in the last five to 10 years. That longer growing season does a lot to drive protein levels, and when it comes to IP soybeans, it’s all about the protein. “There’s a lot of variety work going on — and the West is a new frontier for soybeans,” says Schmalz, adding that there were about 250,000 acres planted in Saskatchewan in 2015. “And I’ve seen projections over the next five years for dramatic increases in that volume, and it’ll be coming out of canola.” SG Soybean Guide, October 2015
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Soyguide
Grow intensive! Growing soybeans more intensively raises crucial new questions By Ralph Pearce, CG Production Editor
I
n the mid-2000s, a spirited discussion between a private-sector crop adviser and a public-sector employee working in extension reflected the disparity that existed between corn and soybean production. At the time, corn yields were climbing at a stronger pace than soybeans, despite the arrival of glyphosate-tolerant soybeans. The adviser suggested that more had been done by the private sector to boost corn yields than the public sector was able to do for soybean yields — a take on the “what have you done for me, lately?” taunt. It was an unfair comparison then: soybeans had recently been decimated by drought, excessive heat and the explosion of soybean aphids in 2001. Plus, an expansion of weed species and diseases,
“Many growers are managing soybeans today exactly the same as they did 30 or 40 years ago. Why?” — Eric Richter, Syngenta
Growers continue to face challenges in residue management, which is why Syngenta’s Eric Richter added it to his list of 33 production parameters that can affect soybean yield.
6
together with the spread of soybean cyst nematode in subsequent years further hampered the same upward progress on yield as had been enjoyed by corn. It didn’t help that soybeans had also acquired a reputation of “it takes three (environmental) strikes to hurt your soybean yields.” That was the same as giving the industry permission to ignore the crop and let it fend for itself. Today, it’s still an unfair comparison, primarily because the two crops are so different in so many ways — one is essentially a hybrid grass, the other a varietal legume. One is a monocotyledon, the other is a dicot. The growing points, nutrient demands, vegetative and reproductive stages, and unique sink (grain storage) structures — all are different. But what if the same intensity of agronomic and biological management practices used in corn was applied to soybeans?
It’s arguable that soybean production parameters have lagged behind those of corn up to the last five years. Corn’s reputation as the driver of farm revenue is almost unassailable, pushing soybeans into the back seat, despite the fact that soybean acres have eclipsed those of corn in Eastern Canada since at least 2011. Yet the rationalization continues. Soybeans are supposed to be able to tough it out on their own. Or, if you look at it from the opposite direction, there just isn’t supposed to be as much return from pushing soybeans as from pushing corn. 33 factors in all Eric Richter wants to change that line of thinking, and he has at least 33 ways to start. At a workshop attended by Syngenta seed growers last January, Richter spent part of the afternoon session exploring the many facets of soybean production. During breaks between presentations, he began writing down the parameters as they came to mind. Some were more obvious — like ideal row width, canopy closure, nutrient uptake amounts and timing — while others were part of a strategic renaissance, addressing overall production parameters, whether they’re seen as corn concepts or soybean ideals (see the complete list in sidebar). “The concepts and ideas are not ranked, weighted or grouped in any way, but they need to be, and that’s the next step,” says Richter, who has studied soybean plant biology and production parameters for nearly 30 years. He’s quick to note that many of the ideas are not original, nor are they exclusively his, but more a summary of production concepts and techniques he’s gathered over the years. Some have come from growers, some from researchers and some Syn genta’s product development team, including David Lee and Don McClure, respectively Syngenta’s long-serving soybean senior technician and breeder. Initially, Richter wrote down 31 facets he deemed noteworthy and came up with a 32nd parameter after the workshop, while the 33rd was added as the 2015 growing season progressed. But he also points out that these facets represent a series of starting Soybean Guide, October 2015
Although corn and soybeans are different plants, it doesn’t mean growers can’t employ the same management practices in soybeans as they do in corn.
Bean flex is a relatively new term that refers to the plant’s ability to generate additional yield late in the bean- or pod-fill stage.
Soybean Guide, October 2015
points on their own, and he continues to add to this list and knows there are many more that can still be added. Two terms he’s particularly emphatic about are “bean flex” and “G x E.” He characterizes bean flex as the ability of a soybean plant to generate additional yield very late in the bean-fill stage — as a function of seed size. Richter has been using this term for years, yet as far as he knows, it’s an agronomic term particular to soybeans that does not exist in any research literature or publication. Recent Syngenta soybean data confirms the importance of bean flex with up to 30 per cent of yield bonus being derived from bean flex in a high-management soybean trial. As for G x E (or ‘G by E’), it encompasses the relationship of the Genetics of the seed with the Environment into which that seed is planted. But it’s more than the seed-to-soil link: it’s also soil type, weed, pest and disease species and spectra, weather conditions, and fertility levels. In short, it’s everything involved with where, how and why the seed is being planted. Although it’s not a new concept like bean flex, it is something that Syngenta was first to acknowledge (as part of the company’s “The right bean for the right land” campaign in the mid-1980s). Yet G x E is just as relevant today as it was back when Richter started his career. And the layers of information that can be added are limited only by the advance of precision ag applications, including yield monitor information and yield maps. “What I try to say to growers is that if you look at G by E, and if you understand and capitalize on that concept, you can add about 15 per cent yield without doing anything radically different other than really positioning the varieties to the best fit,” Richter says. Still the disparity It’s something Richter put a lot of thought into during his near-30 years in agriculture. He has taken portions of what he has learned working in forages — including the creation of the Forage Masters distinction — and tried to determine why soybeans have been neglected. One sign of that neglect is the relative disparity between theoretical and actual (infield) yields in both corn and soybeans, and he asks why the two are so different. In corn, the gap is the 500-plus bu./ac. theoretical versus about 170 actual (Ontario Continued on page 8
7
Continued from page 7
provincial average), which is roughly 34 per cent of theoretical yield. In soybeans, that gap is at least 15 per cent lower — 250-plus bu./ac. theoretical versus 45 to 48 actual (Ontario provincial average), which translates to 18 to 19.2 per cent. “Corn is relatively easy to grow, but soybeans — it’s a very complex crop in so many aspects, and the spoils go to the detail-oriented soybean grower,” says Richter. “I find it interesting that many growers list slow genetic improvement of soybean germplasm as one of the main
limitations to improving on-farm soybean yields, when it’s actually their current soybean production systems that are failing them. Many growers are managing soybeans today, exactly the same as they did 30 or 40 years ago. Why?” Richter also believes more yield is lost by the cumulative effect of diseases and pests, a factor worsened by bean-on-bean or continuous-bean cropping. Hence the placement of the pest and disease limiting factor as first on the list: years ago, McClure convinced him that too much yield is lost because growers underestimate those impacts.
33 Reasons for Reflection Eric Richter, agronomist with Syngenta Canada, has gathered a list of 33 different production parameters that can affect soybean production. The hope was that in addressing these specific components, growers might be able to positively affect soybean production on their farms. In no order of importance, here are the 33 facets he collected. 1. Pest- and disease-limiting factor
17. Picket fence stands
2. Soybean system versus corn system
19. Nutrient uptake amounts and timing
3. Soybean system versus white bean system
20. ‘W’ canopy
4. Cotelydon retention strategy
21. Bean flex
5. Canopy closure
22. Reflowering during terminal bud stage
6. Maturity versus yield potential
23. Fertility (macro — N/P/K/ Ca/S micro — Bo/Mn/Mg)
7. Ideal row width 8. Ideal/optimum population
24. Vegetative growth versus nodal growth
9. Weed management strategies (e.g. V stages versus R stages)
25. Yield components (number of nodes, pods, beans and weight)
10. Plant types and growth characteristics
26. Genetic potential
11. Optimum leaf area index
28. Maturity compression
12. Lodging tolerance
29. Germination process
13. Soil health strategy
30. Source-sink relationship
14. Ideal R stage initiation
31. Maximum yield/node (grams)
15. Uniform emergence 16. Key physiological characteristics (legume, indeterminant flowering, broadleaf) 8
18. Micro-count concept
27. Day-length sensitivity
32. G x E 33. Residue management during planting and stand establishment
Current production trends In many ways, these are also a reflection of the default approach growers have taken in the past 10 years. The advances of researchers and plant breeders in selecting from elite germplasms and breeding those high-end performing hybrids and varieties have led to something of a letdown in production methods. Growers are expecting 300 bu./ac. corn yields more on the strength of the performance of the seed without necessarily doing all they can to help improve the health of the soil. Richter points to five such factors that should be fairly obvious, but have fallen off the radar for growers — for any of a number of reasons. Those are: soil health — specifically relationships to those cropping systems that include tight rotations of soybeans; limitations of the “Scavenger Crop” concept; planting date for soybeans — what is the optimum time; managing extreme residue levels to maximize seed emergence and establishment, and implications from excessive planting rates of soybeans. These are fundamental in their nature, yet with the job the seed and trait companies have done in bringing innovations to the field, many of these concepts, especially in soybeans, have not just become secondary — many have been ignored outright. What’s old is new again The concept of growing soybeans with the same enthusiasm as with corn is certainly worth repeating and sharing. Richter concedes that the overall principle behind it — what he calls the “crop management intensity concept” was something he encountered nearly 30 years ago when he was working in forage research. When he began working as a sales agronomist and moved into row crops, he found that same approach and many of the same concepts applied to soybean production. “It was amazing travelling the back roads and being able to identify forage producers who stood out within their area as true Forage Masters,” he says. “My work term with soybean growers has taught me that the same concept applies to soybeans just as much as to any forage crop — it’s all about the details.” Next, look for more in this series on enhanced soybean production in future editions of Country Guide. SG Soybean Guide, October 2015
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1
Biological fungicide activity is a PMRA registered claim in Canada. 2 Source: BASF, 76 Station Years (n sites x n years)
Always read and follow label directions. AgSolutions, BIOSTACKED, and INTEGRAL are registered trade-marks of BASF Corporation; HISTICK, and NODULATOR are registered trade-marks of BASF; all used with permission by BASF Canada Inc. © 2015 BASF Canada Inc.
Soyguide
When a supply interruption eventually comes, which it will, soybean prices will have
Market outlook
to go up to ration demand
D
By Philip Shaw
10
riving through Eastern Canada this summer, you could see the crop everywhere. Fields of soy beans stretched from Windsor, Ont. into Quebec and beyond into New Brunswick and Prince Edward Island. And that’s without even mentioning the West. Soybeans have truly transformed the farm landscape over the last several decades. They have become an integral part of the farm income picture in Canada. Of course, though, for farmers the challenge is managing our soybeans effi ciently and marketing our soybeans prof itably. In 2015, according to Statistics Can ada, eastern Canadian soybean acres have actually dropped from record 2014 levels. For instance, in Quebec in 2015, har vested acres are expected to end up at 775,900, down from the 852,500 acres in 2014. In Ontario, meanwhile, StatsCan’s estimates show 2.92 million acres of soy beans at harvest versus 3.06 million acres in 2014. Changing market dynamics as well as rotational concerns and the lack of wheat acreage in Ontario in 2015 surely had an impact on soybean acres, and in 2016, this fluid acreage consideration is likely to continue. It is one thing to grow soybeans and another to market them profitably. In Eastern Canada, soybeans are crushed at domestic crushers both in Ontario and Quebec, but the crop also moves throughout the year into export markets. Typically, in Ontario at harvest time, soy beans move out of province partly because of our lack of storage as well as market opportunity. With Quebec’s closeness to saltwater, soybeans can quickly move into export markets. However, there is also an active livestock market which can use soybean meal, with the result that there is a dynamic market environment where soy beans move to where they are needed. That said, further domestic processing within Ontario and Quebec would cer
tainly be helpful for value-added oppor tunities for eastern Canadian farmers. Within the soybean market in Eastern Canada, there are both non-GMO foodgrade soybeans and GM soybeans grown side by side but with different market opportunities. For the most part, nonGMO food-grade soybeans are processed and put into containers and exported to markets in the Far East. In East Asia, peo ple sit down every day to eat some type of soybean product. This demand reaches back into Canada, where processors and farmers have been able to satisfy that d e m a n d i n a n e f f i c i e n t m a n n e r. Premiums above posted cash prices for soybeans are constantly in flux, but remain a real part of the soybean econ omy within Eastern Canada. Of course, Canadian soybeans are not marketed in a pricing vacuum. Each enduser calculates the price of soybeans based on a nearby futures price determined at the Chicago Mercantile exchange plus or minus a specific basis value, which reflects localized demand. In 2015, we have seen a major decrease in the futures price for soybeans as the USDA has predicted a very strong crop yield for 2015. For instance, the August 12 USDA report said 84.3 million acres of soybeans were planted in the United States in 2015. It also projected a yield of 46.9 bushels per acre for a total crop of 3.916 billion bushels. This fall’s huge projection from the USDA were somewhat different from what the trade had been expecting after difficult early-spring weather in the east ern Corn Belt. Soybean futures decreased substantially on this news and have retreated more than $1 below September 2014 values. These lower futures prices have cer tainly put a bearish tone on the soybean market. However, to a great extent Can adian producers have been shielded from even greater price drops because of the precipitous drop in the Canadian dollar over 2014 and 2015. The cash price for Canadian farmers is the nearby futures Soybean Guide, October 2015
price plus or minus the basis in Canadian dollar terms. With the Canadian dollar reaching down into the US$.75 range in early September 2015, this has meant cash prices of approximately C$11 a bushel as of early September. In other words, the lower Canadian dollar has led to a +$2 Canadian basis value mitigating the drop in futures prices. In many ways, despite the price drop in soybean futures, the precipitous drop in the value of the Canadian dollar has been “the story” in the Canadian soybean market in 2015. The value of the Canadian dollar is a reflection of the demand for Canadian currency. In many ways, it is an inverse to the value of the U.S. dollar, which has been higher into 2015. With the Bank of Canada cutting interest rates and our economy slowing, it has caused our Canadian dollar to drop, giving a boost to our grain basis values. China, which is also a large buyer of Canadian commodities, has also seen a slowing of its economy in 2015 further pressuring our Canadian currency. With the Chinese economy slowing in 2015, this has had a negative effect on soybean prices, as China is the largest importer of soybeans in the world. However, to some extent the futures market has been “chasing these headlines” and anything negative to do with China often is negative for commodity prices. Food demand is not the same thing as manufacturing activity and it is likely to remain robust and actively growing. China has purchased so many Brazilian soybeans this past year that the USDA actually reduced Brazilian soybean ending stocks to just 128 million bushels for 201415. So despite problems with the Chinese economy, it is expected the Chinese demand for soybeans will remain robust. Livestock production in China continues to expand and protein demand for both swine and poultry is going up too. Big crops in both North and South America have satisfied this demand, but when the supply interruption eventually comes, which it will, demand will not be easily tempered. Soybean prices will have to go up to ration this demand. For Canadian soybean producers, there is much to measure with regard to market factors looking ahead for our soybeans. What will the Canadian dollar do in the next several months? Essentially, Soybean Guide, October 2015
How do we find that sweet spot for marketing our soybeans with a low dollar and a high futures price? this is another layer to Canadian soybean marketing as large movements in the Canadian dollar can cause large cash price movements. Will the USDA increase its August projection, putting even more pressure on the futures price for soybeans? Or will it reduce its estimate? As Canadian soybean farmers, how do we find that sweet spot for marketing our soybeans with a low Canadian dollar and a higher futures price? We also have to ask, how will South American planting affect prices? How much will it put in the ground, what will its weather outlook be, and how will this affect soybean futures? No discussion about world soybean prices can take place without looking at the South American situation. The USDA in its latest report is predicting that Brazil will harvest 97 MMT of soybeans in 2016 and Argentina will maintain its soybean production in 2016 at 57 MMT. The Brazilian number continues to increase every year, Argentina not so much, since export taxes and political issues there have stemmed production in the short term. However, the important consideration for Canadian farmers to be
aware of is their planting time, which takes place between October and Decem ber 2015 and their harvest between March and May 2016. Any weather anomalies affecting this planting or harvest period will affect futures prices greatly. Daily market intelligence will be key. USDA reports will remain flashpoints for soybean market action moving ahead. The final USDA report on the size of the 2015 soybean crop will be published in early January 2016 and often produces explosive price movement. Much of the price action until then will be reflected in actual yields when combines roll as well as the interest of investment funds in our soybean market, which have exited to a large extent since July 2015. It has been a long way down from the record soybean futures price of $17.89 a bushel achieved in 2012. In effect, current futures prices reflect less than half that. Of course the test for Canadian producers is to measure all the market factors that affect both the futures price and our Canadian dollar value as we move ahead. Managing both of these soybean-marketing layers presents us a unique challenge. Rewards for our management can be substantial. SG 11
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Soyguide
Soybeans Do your homework before jumping in head first
Soybean varieties and the business case for growing them have been improving, but Saskatchewan isn’t Iowa yet. Even seed salesmen recommend going slowly at first By Gord Gilmour, Associate Editor
14
S
oybeans have expanded well beyond their traditional base in Manitoba’s Red River Valley, so growers even farther west into Saskatchewan are giving them a close look. But they might want to wade through the hype before making any big decisions, says one agronomist who’s been working with new growers. Dieter Schwarz, a market development agronomist with Pride Seed, says this region is unproven ground for a crop that developed biologically under much different conditions. “This is, originally, a warm-season crop,” Schwarz told C ountry G uide . “Growers need to really start small and see how a variety, even the short-season varieties, actually performs in their own local growing area.” Schwarz says he knows growers who reliably get 50 to 60 bushels an acre of canola but who have tried certain soybean varieties only to find yields in the low 30s, which simply won’t pay the bills. “I’ve heard a lot of growers say they need $500 an acre in income from their canola crop — if they’re not getting at least 50 bushels of canola an acre, they’re losing money,” Schwarz says. “It is important to know your costs for your operation, and to research local crop yields in an effort to create realistic cropping budgets for growing soybeans.” Schwarz adds it’s extra important with soybeans because going into the crop in a big way requires substantial investment in
specialized equipment like flex headers, air reels and even conveyor systems. It’s surprisingly blunt talk from a company representative who wants to see growers trying beans, but Schwarz says the goal isn’t to talk growers into putting more soybeans in the ground — it’s making sure they make money when they do. If they do, a viable soy industry in Western Canada will be possible. If they don’t, soybeans will be a flash in the pan. Says Schwarz, “I don’t want to rush out just to be the first, and have growers be disappointed.” Frost cools enthusiasm Another observer says the hype might have enticed a few growers in Saskatch ewan, but reality is starting to set in. Dale Risula, a pulse crop specialist with the Saskatchewan Agriculture Department, told Guide a frost in early last September seems to have slowed interest this season. “We saw soybean production in Saskatchewan go from about 50,000 acres to 300,000 acres in just three seasons,” Risula says. “But I think that early frost knocked it back a bit, and slowed that growth. It’s still there, and there’s still a lot of interest, but acreage has crept back a bit.” This pattern isn’t unfamiliar, and likely reflects the learning curve that comes with any new crop. Schwarz says that at least initially there was a lot of hype around soybeans in non-traditional areas, and as Continued on page 16
Soybean Guide, October 2015
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Continued from page 14
growers gain experience, they’re learning it’s a crop with risks like any other. “Thankfully a lot of growers are realizing that soybean isn’t necessarily a lowinput crop,” Schwarz says. “They reality is a good soybean crop will take off 85 pounds of phosphorus… If you’re not fertilizing you’ll hate yourself the next season.” That’s not to say there aren’t fertility advantages — soybeans fix their own nitrogen from the air — but even that process requires some knowledge and management. “Soybeans require a different inoculant than peas and lentils, and it’s not naturally present in our soils,” Risula says. “Growers will need to make sure they’re inoculating, and inoculating with the right type of product.” Pride Seed’s Schwarz echoes that sentiment, saying he’s seen and heard of some real wrecks when this doesn’t happen. “Some growers put bare seed in the ground, and that’s a recipe for disaster,” he says. “We recommend full fungicide — and possibly insecticide, depending on field scouting — as well as a double inoculant.” So that would mean inputs right on the seed itself, then an additional eight pounds an acre granular application in furrow at seeding time on new soybean ground. Even at that, growers who are used to seeing residual nitrogen from other pulse crops may find themselves surprised and even disappointed by what’s left at the end of the season, Schwarz says. “Soybean is no soil builder, like peas or lentils,” he says. “A healthy soybean crop will require 200 pounds of nitrogen in the season.” Risula says one strategy growers might want to consider when picking a field is finding one that’s very low in N, because the crop will pump nitrogen out of the soil it turns to its nodules to fix that “free” nitrogen in the air. Clean field is imperative Risula also says the crop isn’t terribly competitive early in the season until it begins to bush out and starts to choke out weeds. That means a clean field is imperative, starting with both a pre-seeding burn-off and an in-season application. Schwarz adds that the presence of Roundup Ready canola could also complicate this challenge, and add some expense. “That means more than just a cheap and simple glyphosate application — it’s 16
“If you have some neighbours who are growing soybeans, talk to them, keep a close eye over their fence, maybe even ride the combine with them.” — Dieter Schwarz, Pride Seed going to take some more expensive products, things like Odyssey, Viper or Heat,” Risula says. In the end it’s going to go back to a bit of old-fashioned trial-and-error agronomy and Schwarz suggests keeping a close eye on what’s happening close to home. Soybean is a plant that reacts fairly dramatically to things like changes in the photoperiod, so observing the crop under local conditions will be key. “If you have some neighbours who are growing soybeans, talk to them, keep a close eye over their fence, maybe even ride the combine with them for a bit if you’re done harvesting wheat and canola,” Schwarz says. “There is nothing that will substitute for local research and production experience.” In fact Schwarz says soybean production should start as early as possible the year before, by getting as much of this information together as possible, and reconciling it with what’s known about local growing conditions. Picking a field is a key part of the decision. Risula says land type plays an important role. Soybeans can handle a bit wetter feet than canola and really don’t like drying out, as the plant developed naturally in high-rainfall environments. “When we talk about soil types for soybeans we’re really looking at clay and clay
loam,” Schwarz says. “Avoid sand because dry conditions will really hit yield.” Schwarz also notes that heavier soils can help retain moisture for crucial periods during growth, like right after the last pods appear in late July and very early August. “We call those the bonus beans, and if you want those pods to fill you really need some rainfall right then, or a heavier soil that has retained some moisture,” he says. “I always tell people if they want really good soybeans, they might have to be OK with No. 2 wheat that season because of this.” One thing both Schwarz and Risula agree on is the importance of truly understanding the crop and getting past the hype, something Risula says should be any potential soy producer’s mantra. “Prepare, prepare, prepare,” he says. “Do your research, prepare your ground this year, and be ready for next year.” Despite sounding a note of caution, Schwarz says he remains overall quite positive for soybeans as a part of the western Canadian rotation, over time. In the end there are just too many compelling reasons to try to make it work. “It’s an excellent addition to a crop rotation,” he says. “It adds a pulse crop, it gives you a break on your canola disease cycle, and has the potential to be nicely profitable.” SG Soybean Guide, October 2015
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Iowa receives an annual average of 43.35 inches of rain, double that of Manitoba.
Is Manitoba the new Iowa?
By Ron Friesen
Moisture gives the top U.S. soybean-producing state a yield advantage, but also causes more disease problems
I
s Manitoba the new Iowa? That was the official
with Country Guide, he said he hardly ever has to
theme of a recent Manitoba Agronomists’
worry about frost. “Very seldom do we ever have
Conference as professionals considered the
beans frosted off. Once in a great while, like any-
future of soybeans in the Keystone province. It is also the question that producers and industry officials are pondering now that soybeans in Manitoba are well over the million-acre mark. The doubling of soybean acres in Manitoba in the past four years has drawn inevitable comparisons with Iowa, which, until recently, was the largest soybean-producing state in the United States. The truth is, however, that Manitoba is no Iowa. While Manitoba’s 1.3 million acres of soybeans planted in 2015 are impressive, they are dwarfed by the estimated 10 million acres seeded by Iowa growers. As for the differences in growing conditions, just ask an Iowa farmer. John Heisdorffer planted his 44th soybean crop near Keota in southeast Iowa this year. Earlier this summer, he expected to meet his average annual yield of 48 to 50 bushels an acre. Heisdorffer estimates average soybean yields in Iowa range from 45 to 50 bushels an acre in northern regions of the state to 50 to 60 bushels in the south. By contrast, the 10-year average provincial yield in Manitoba is 33 bushels an acre. Heisdorffer, 63, normally starts planting soybeans in late April or early May and harvests them in late September or early October. In a phone interview
18
thing else, we’ll get caught. But I don’t remember in my lifetime it ever hurting the beans.” Heisdorffer also doesn’t need to worry about cool nights during ripening, since daytime highs during the growing season average 30 C or more. D r y c o n d i t i o n s a re s e l d o m a p ro b l e m . According to the Iowa Department of Agriculture and Land Stewardship, the state’s average annual precipitation is 43.35 inches, double the Manitoba average. Admittedly, Iowa’s wetter climate can produce plant diseases not known in Manitoba. One of the big ones is sudden death syndrome, one of the most important soybean diseases in the U.S. Midwest. A fungal disease, SDS places plants in high-moisture areas at risk and causes yield losses of over 20 per cent in some fields. For that reason, Heisdorffer, who sits on the Iowa Soybean Association, the American Soybean Association and the U.S. Soybean Export Council, thinks Manitoba may have an advantage. “Maybe your yields aren’t quite up there but beans like dry heat. They’re more of a dryland crop. If you can get the rains in August or so, that’ll make your beans.” Maybe. But judging by the statistics, Manitoba isn’t about to become the Iowa of the north any time soon.
Soybean Guide, October 2015
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Soyguide
The next ‘biotechnology’ Faster to market, with even more potential usage, microbial innovations are set to enhance today’s biotech options By Ralph Pearce, CG Production Editor
W
hen the word “biotech” first leapt onto the agri-food scene, there were plenty of proponents and opponents for the science of implanting different genes into corns, soybean and canola genetics. The first Bt hybrids offered yield advantages, and the early days of glyphosate-tolerant soybeans saw cost savings that began with weed management practices but also led to the wider adoption of no till. The optimism surrounding those first innovations was undeniable and, among other things, prompted the “Five Phases of Biotechnology,” a short bare-bones road map to the anticipated stages of developments within the sector. From the herbicide and pest resistance that marked Phase I to the bioenergy processes predicted — and realized — in Phase V, biotechnology was going to revolutionize agriculture.
using natural selection. That compares to plant biotech which involves the manipulation of a plant’s genes or inserting new genes into a plant. Dr. Tyler Whale, president of Ontario Agri-Food Technologies (OAFT), based in Guelph, adds to the USDA definition, noting that for Canadian regulators, a symbiotic or mutually beneficial relationship must be part of the innovation, and that it must contain the unaltered whole organism(s). It’s why Bt corn (based as it is on the insertion of a gene or genetic derivative) cannot be classed as a microbial: the Bt gene insertion is a single-site occurrence — there’s no symbiosis or relationship with or within the host plant. “The funny thing about microbial biotech is that it’s happening right now, and it’s been happening since the dawn of agriculture and the dawn of life,”
“Microbial biotech is happening right now — and has been since the dawn of agriculture and the dawn of life.” — Dr. Tyler Whale, Ontario Agri-Food Technologies Now, two decades after those first traited plants began appearing in fields in North America, we are beginning to see a new oppor tunit y, based on microbes, which could rapidly eclipse many of our current limitations. It’s still early in the game for microbials (part of what are often called “biologicals”) but the benefits and advantages for modern agriculture are already enticing. The U.S. Environmental Protection Agency (EPA) has adopted a straightforward definition: “Microbial innovation is a micro-organism (bacterium, fungus, virus or protozoan) that can be used for controlling pests or enhancing plants. It’s a living micro-organism and the substances produced by the micro-organisms.” The microbe can be modified to produce more cells or compounds, but only by finding alternative food sources and 20
says Whale. “Single-celled organisms, microbes, fungi, bacteria and viruses (to some extent) are interacting with more complex organisms and finding symbiotic relationships where a microbe can survive by improving a host’s chances of surviving.” Where microbial biotech is really getting started, Whale says, is in understanding the complexities within those microbial ecosystems, and then learning to manipulate and promote their symbiotic relationships. As an example, Whale points to an emerging and improved understanding of mycorrhizal fungi. Farmers, agronomists and researchers are learning more about this microbial ecosystem, including the effects on soil quality, crop rotation and tillage, and the use of pesticides and agricultural inputs. The potential Soybean Guide, October 2015
impact from enhancing just those particular aspects is incredible, to say the least. Vast potential Yet those more-obvious components of production agriculture are just the beginning. According to Dr. Pam Marrone, chief executive officer and founder of Marrone Bio Innovations, based in Davis, California, current sales for microbial innovations are somewhere between $3.6 billion and $4.6 billion, with double-digit growth rates. Biopesticides that are now available are generating roughly $2.0 billion to $3.0 billion, which is admittedly a tiny fraction of the $55 billion to $60 billion for chemical pesticides. But the chemical sector’s sales are growing at single-digit rates while the biopesticide market for registered, regulated products is leaping ahead by 15 to 16 per cent per year. “Then there’s another category of plant stimulants — or biostimulants,” says Marrone, who participated in a panel discussion called A New Paradigm for Biotech in Ag last January in St. Louis, Missouri. “These could be microbes or nature-identical substances. They do not control a pest or do not cause a physiological response in a plant — they only enhance the growth of the plant, and as such, they do not require registration from the PMRA or the EPA. That segment is worth another $1.6 billion in current sales, and they’re also growing in double digits, just not as quickly as the biopesticide category.” The benefits of such naturally based or naturally occurring products quickly become obvious, even beyond the farm. A consumer base that’s becoming more vocal about so-called “unnatural” genetic manipulations in Bt corn might be more receptive to a symbiotic interplant relationship along with the natural substances produced by these microbes. That could translate into more support for farmers and what they do. Yet as much as there are positives in the development of microbial biotech, there is some disparity in its development too, and that’s in the difference between U.S. and Canadian regulatory authorities. Marrone isn’t betraying any secrets when she echoes a familiar refrain about scientific research and development in Canada: dealing with the PMRA has its challenges in part because it demands efficacy data gathered in this country.
For better or worse, the U.S. EPA is more concerned with quality control, physicalchemical properties, and ensuring there are no human pathogens present. Some efficacy data is required, but the U.S. focuses on health and safety and less on performance, and as is known on both sides of the border, that speeds the approval process considerably. There is a joint-review provision that
does exist for biopesticides, adds Marrone, but she notes that most American biopesticide companies opt out of that process because they understand the PMRA’s involvement is likely to slow things down. Whale agrees that there is the need to ensure Canadian development doesn’t force the industry into unnecessary Continued on page 22
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Soybean Guide, October 2015
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Continued from page 21
delays getting products to the field. It’s one thing to have a reputation for regulatory scrutiny and thoroughness, but you can’t delay things at the expense of adopting technology late,” Whale says. “The costs of ‘late-to-the-party’ are higher than ever, and we have to find where we fit but we can’t delay — for our farmers’ sake or for our own foodsovereignty sake. Benefits — to the grower Regulatory delay aside, microbial biotech stands to rewrite the story for biotech as a science and biologicals as an industry. It takes 10 years and $250 million to bring a new chemical pesticide to market. For a plant-biotech innovation, that can be 12 to 13 years and $130 million. Yet for microbes, the process can be faster and cheaper — perhaps too fast, in a way. “Since biologicals can come to market within three to five years of development with only $3.0 million to $5.0 million invested, you’re still in the early stages of the commercial adoption of your product when you launch it,” Marrone explains. That sounds like an advantage but it also means there hasn’t been the time to develop the same stream of data and information as from a lengthier R&D term. Adds Marrone, “You don’t have 10 years, just three, so you’re still doing the development of your product when you’re in the market. So that’s great for early adopters, but it’ll take longer to reach the mainstream grower because you don’t have the same amount of data and experience behind the product.” It’s also a different business model than chemicals. That means a slower adoption of these technologies, although Marrone believes lengthening the development of some of these products and even $20 million or $30 million in R&D would speed their uptake, although many small companies may not be able to afford this extra wait-time and money before getting into the market. Working in co-operation Despite the speed and lower relative costs with which these products are brought to market, Marrone shares something she told the panel discussion in St. Louis earlier this year: microbial biotech will not replace current plant biotech applications. She refers to Monsanto’s alliance with Novozymes in the development 22
“I don’t see microbials replacing plant biotech — they’ll be used in conjunction. — Dr. Pam Marrone, Marrone Bio Innovations of a combination of a traited corn hybrid, plus a microbe from Novozymes on top of that, placed on the seed, with a chemical application added to that combination. “So they’ll have all three technologies integrated into one… I don’t see microbials replacing plant biotech — they’ll be used in conjunction,” says Marrone. That collaborative approach, Marrone adds, will do more to extend the life of existing plant biotech applications. Unlike Bt corn or glyphosate-tolerant soybeans, resistance with microbes and microbial ecosystems is not believed to be an issue. One of Marrone Bio Innovations’ products, Grandevo, is a new species of bacteria that produces four different compounds that work in four different ways. That diversity if important because if it had only one chemical in its makeup, it would be easier to develop natural resistance. At the same time, many of these microbial ecosystems are also biodegradable, so they don’t exist long enough for resistance to develop. Whale agrees that the key to fighting the development of resistance comes from the symbiotic relationship between microbes and plants, where that “living organism” (which can produce multiple natural compounds) distinction creates an evolutionary resilience. In a Bt hybrid, for instance, the implantation of the
Bacillus thuringiensis bacterium is a mode of action with a single-site application, so pests such as European corn borer can develop resistance more easily and readily. With microbial applications, since they require that ecosystem approach, they’re better suited to evolve and adapt according to the actions of a pest or disease pathogen. In essence, two — or multiple — modes of “living” action are better than one. A new ‘S’ word As unique as microbial biotech may be, however, some of the same old issues facing plant biotech applications are undoubtedly going to surface. In spite of what transgenic discovery has done for agriculture — and society as a whole — there has been growing opposition to “GMOs” from the non-farming, consumer base. That opposition, while not gaining much ground in North America due to the recent responses of members of the scientific community, is still grabbing media attention. It’s to the point where the issue of “sustainability” has been eclipsed in consumers’ ranking by “social licence,” i.e. a permission from consumers that allows the farmers to produce. Farmers, producer groups, governments and all of agriculture’s stakeholders need to be better at appealing to the public as to what they do proactively to Soybean Guide, October 2015
help the environment or to be more sustainable in their practices. But technologies like biotech can encourage or discourage the public’s confidence in agriculture, and their willingness to extend that social licence to producers. That’s why it’s important that there’s been more research and information generated on farm management practices, such as mychorrizal fungi and their impact on soil health, leading to healthier crops and higher productivity. Combining these kinds of information with information on other biotech benefits could potentially turn opposition into support. “Farmers are science based, for the most part. They’re evidence-based people,” says Whale. “They make their decisions based on return on investment and
demonstrations of a technology. They’re not ones to accept huge risks. They already accept huge risks by dealing with Mother Nature and by dealing with high capital costs. So for a technology like this to be accepted, certainly it has to be proven to them, and proven to them in their soil type and the crop type and the genetics that they use. But suppose a technology can attract early adopters and shows wonderful results: from this you’ll gain more security and knowledge and experience.” From that point, the social licence issue would take over. Yet Whale is frustrated with the fact that there are those who would rather see the world’s citrus industry decimated by huanglongbing (greening disease) than allow a GMO solution that stakeholders and growers
are hesitant to use for fear of consumer backlash. Meanwhile, there are the positive examples of biotechnology (GMO) that can deliver amazing results, including Golden Rice and the saving of the Hawaiian papaya industry from papaya ringspot virus (PRV). Both of those examples have been created for nonprofit purposes. The challenge remains how to find that median between being productive enough to feed the world while allaying the fears of a consuming public that’s largely out of touch with modern farming practices and the realities of the global marketplace. It could be that microbial biotech is the opporunity that plant biotech can use to create balance in the agri-food industry. SG
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Visit brettyoung.ca 1-800-665-5015 Elite® is a registered trademark of La Coop fédérée. BrettYoungTM is a trademark of Brett-Young Seeds Limited. Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. This product has been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. Excellence Through Stewardship® is a registered trademark of Excellence Through Stewardship. Always read and follow pesticide label directions. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not glyphosate tolerant. Genuity®, Genuity and Design®, Genuity Icons, Roundup®, Roundup Ready®, and Roundup Ready 2 Yield® are trademarks of Monsanto Technology LLC used under license. 5032 09/15
By Ralph Pearce, CG Production Editor
New in soybean varieties New options will help the crop continue expanding its value and range anadian soybean production has grown up in the past 30 years. It seems a distant memory now that in 1985, Ontario was still the only major producer in the country, topping the million-tonne mark that year, well above the average of 690,000 tonnes earlier that decade. One year later, Quebec joined the market, and five years after that, the Maritimes began growing soybeans, followed by Manitoba in 2001 and Saskatchewan in 2013. According to Soy Canada, national production for 2014 was estimated at more than 6.0 million tonnes, with Manitoba vaulting past Quebec in the past years to become the secondleading soybean-producing province in the country. This is why Country Guide is offering this latest in our “What’s new?” series for soybeans, featuring the newest varieties from 12 different companies, arranged aphabetically by company name. It’s a companion piece for any discussion you plan with your seed representative, dealer or adviser this fall. Note that asterisks (*) indicate registration was pending as we go to press.
Bayer CropScience Balance GT — The Balance GT Soybean Performance System was developed through collaboration between MS Technologies and Bayer CropScience. Created using high-yielding, elite soybean genetics, Balance GT is intended to give growers exceptional performance coupled with outstanding weed control. Balance GT soybeans will be tolerant to both glyphosate and isoxaflutole, the active ingredient in new Balance Bean herbicide. These two chemistries will protect against a variety of weeds, with exceptional performance against both broadleaf weeds and grasses, including difficult-to-manage weeds such as eastern black nightshade, waterhemp, and ragweed. Glyphosate can be used to combat weeds on contact while Balance Bean herbicide, with its unique reactivation feature, will continue to provide residual coverage from application through canopy closure. Balance GT soybeans will be the first step in a foundational system that will grow to include a triple-stacked herbicide-tolerant soybean, providing tolerance to glyphosate, Balance Bean and Liberty. The LibertyLink soybean system will be used as well to help manage glyphosate-resistant weeds. Through the LibertyLink soybean system, Bayer says October 2015
it will bring a complete package of high-performing genetics coupled with powerful, non-selective weed control for glyphosate-resistant and tough-to-manage weeds that is also useful for effective resistance management, since Liberty is the only herbicide with a unique Group 10 mode of action.
Croplan/Winfield R2C0724 is a new soybean variety from Croplan/ Winfield, featuring the Genuity Roundup Ready 2 Yield (RR2Y) trait. Well suited to the 2725 crop heat unit (CHU) area, this variety has a relative maturity (RM) of 0.7, offers resistance to Race 3 of soybean cyst nematode and is also moderately resistant to Race 14. It also carries the HRPs1c gene which makes it resistant to Phytophthora root rot, earning a rating of “good,” which is also its rating for white mould. Its genetic defence against brown stem rot is rated as “best.” Boasting very good standability, R2C0724 performs to its maximum in 15- to 30-inch rows but also fares well in seven to 10 inches. R2C2754 is another variety with the Genuity Roundup Ready 2 Yield (RR2Y) technology. A strong choice for the 3175 CHU-growing area, R2C2754 has an RM of 2.7 and is also resistant to SCN Race 3 and moderately resistant to Race 14. For Phytophthora resistance, it relies on the Rps1c gene, for “very good” resistance. It also has good tolerance to sudden death syndrome (SDS), and rates a “best” in its tolerance to brown stem rot. The variety has good standability and is adaptable to either 15- to 30-inch rows or seven- to 10-inch row widths. It grows best on moderate to heavy clay soils and performs well in sandy-loam soils.
DeKalb (Monsanto) DEKALB is set to launch the first class of Roundup Ready 2 Xtend soybeans as part of the Roundup Ready Xtend Crop System, with new chemistry options and added yield potential. DKB008-81* is one of eight new varieties that will feature the first class of Roundup Ready 2 Xtend technology, including a strong agronomic package, excellent standability and a good fit for all row widths and soil types. This variety will have excellent white mould tolerance and very good Phytophthora root rot field tolerance. Continued on page 32 country-guide.ca 31
Continued from page 31 DKB04-41* will have very good emergence and excellent standability. It will be well suited to all soil types and row widths and has a strong disease package with excellent white mould tolerance. DKB06-61* will offer farmers soybean cyst nematode (SCN) resistance and very good tolerance to Phytophthora root rot and white mould. It is suited to heavier soil types and no-till systems and has strong emergence and standability. DKB09-91* will be a tall variety suited best for wider rows and lower populations, with excellent emergence and very good standability. It will have a very strong disease package with resistance to SCN and excellent field tolerance to Phytophthora root rot. DKB14-41* will come with a very strong trait package, including resistance to SCN, brown stem rot (BSR) and sudden death syndrome (SDS). This variety will also have excellent white mould tolerance and very good Phytophthora root rot field tolerance, as well as excellent emergence and very good standability. It will be well suited to all soil types. DKB20-01* will offer farmers SCN resistance, excellent field tolerance to Phytophthora root rot and SDS, and very good white mould tolerance. The variety also should be well suited to all soil types and row widths. DKB22-21* is a variety that will be well suited to all soil types and row widths and have excellent emergence and standability. It will be resistant to SCN and very good field tolerance to Phytophthora root rot. This variety will be moderately resistant to SDS and have excellent white mould tolerance. DKB24-41* will work well on heavier soils and in no-till systems. This variety will have very good emergence and standability with a strong disease package, including moderate resistance to SDS, resistance to SCN and have a very strong Phytophthora root rot package. DKB28-81* will excel in all soil types, tillage systems and crop rotations. Its very strong defensive trait package will include SCN, SDS and brown stem rot resistance plus excellent white mould tolerance and very good Phytophthora root rot tolerance. DEKALB 24-12RY is a soybean variety with a disease package that includes strong tolerance to iron chlorosis and very good tolerance to white mould and tolerance to Phytophthora root rot. This variety has excellent standability and is well suited to all row widths and soil types. It is early maturing with a maturity group of 00.5 and 2425 CHU. DEKALB 25-11RY has excellent white mould and iron chlorosis tolerance. This variety has an early relative maturity of 00.8 and it has excellent emergence. It is best suited for heavier soils, and fits well with no-till systems with very good standability. DEKALB 26-14RY is a 0.2 maturity group soybean variety with excellent emergence and very good standability. It is well suited to wider rows and heavier soil types, has very good field tolerance to 32 country-guide.ca
Phytophthora root rot and very good iron chlorosis and white mould tolerance. DEKALB 28-15RY is well suited to all row widths and soil types. It has excellent emergence and standability and is in the 1.0 maturity group. This variety has very good white mould and iron chlorosis tolerance and excellent field tolerance to Phytophthora root rot. DEKALB 29-62RY is very adaptable and well suited to all soil types and row widths, with very good emergence and standability and excellent Phytophthora root rot tolerance. This variety is resistant to SCN and has very good white mould tolerance. It falls in the 1.5 maturity group. DEKALB 31-14RY is well suited to tougher growth conditions and no-till systems. It has very good emergence and standability as well as very good Phytophthora root rot field tolerance and white mould tolerance. It is a tall variety with a 2.2 maturity group and resistance to soybean cyst nematode. DEKALB 32-62RY has an excellent disease package, including Phytophthora root rot stack trait, SCN resistance, SDS resistance and excellent white mould tolerance. It is a later-maturing plant, with a 2.7 maturity group that has a broad-acre fit.
Dow Seeds DS085F1* is a higher performer for Dow Seeds. In addition to a relative maturity of 0.8, this variety grows into a very attractive plant type with very good general disease tolerance, is adaptable to all soil types and provides excellent emergence and early vigour. HS 08R751* is a Roundup Ready 2 Yield variety, growing into a medium bushy plant that yields well in all soil types. It also has a relative maturity of 0.8, and provides excellent disease tolerance. DS124U1* promises to be an extremely attractive line with good disease tolerance. Its relative maturity is 1.2, and is well adaptable to all soil types. DS146D1* is a soybean variety with the pledge of exceptionally high yields and good tolerance to lodging. Another variety with a relative maturity of 1.4, it is strongly recommended that growers in areas with soybean cyst nematode (SCN) infestations avoid this line. It is also pending registration. HS 30RYS53 is a Dow Seeds variety that produces an attractive, compact plant type, with good lodging tolerance and a relative maturity of 3.0.
Elite Seeds Zaltys R2 is a new full-season, high-yielding soybean variety from Elite. With relative maturity of 3.1, it has an exceptional yield potential, reaching 70 bu./ac. in the OSACC trials. It comes with Roundup Ready 2 Yield technology and performs particularly well on light soils, concentrating its yield along a stocky main stem. Mylitta R2 is an excellent all-around soybean performer. With a 1.5 relative maturity, it’s a very bushy plant that will quickly fill the rows in spring. This variety looks great in the field due to its extraordinary resilience against disease and the October 2015
CROP VARIETIES elements. It carries the Rps1C gene for multiple race resistance to Phytophthora. It also carries the Roundup Ready 2 Yield technology and has been a very consistent variety in trials across Canada and the U.S., where it consistently outperforms cultivars that mature up to one week later. Katonda R2 was released in Quebec in 2015 and also carries the Roundup Ready 2 Yield trait. It is a solid variety with a relative maturity of 1.0. It performs very well in heavy and light soils and demonstrates excellent plant health. It carries the Rps1K gene for multiple race resistance to Phytophthora. The company says Katonda R2 has been able to suppress white mould and protect its yield better than any other competitive variety.
Horizon Seeds Horizon Seeds is partnering with SeCan and will be offering its complete line of products. One of these is SeCan’s Altitude R2. New to Horizon’s 2016 soybean lineup, it’s a 2725 CHU variety with tremendous yield potential under most management systems. Well suited to sandy and loam soils, it performs very well in row widths from seven right up to 30 inches. It is an indeterminate plant with good pod height and very good harvesting characteristics. Equinox R2 is a second new addition from SeCan to Horizon Seeds’ soybean lineup. This 3150 CHU variety is well suited to most soil types but excels on clay and loam types. A high-yielding, longer-day bean that works very well under both no-till and conventional systems, it’s also indeterminate with a strong tolerance to soybean cyst nematode (SCN) as well as Phytophthora root rot.
Maizex Seeds RR2 Atlas is a 2750 crop heat unit variety, with Roundup Ready 2 Yield technology. It’s a variety with excellent seedling vigour, with medium plant height and a semi-branched structure. It also has above-average Phytophthora and white mould tolerance and is resistant to soybean cyst nematode (SCN). RR2 Galaxy is a 2800 CHU variety with the Roundup Ready 2 Yield trait. It’s a broadly adapted variety with exceptional yield potential, with medium plant height and excellent standability. It also comes with excellent white mould tolerance. RR2 Optic is another Roundup Ready 2 Yield variety for the 3000 CHU area. RR2 Optic offers leading pest resistance combined with broad soil adaptability, with excellent tolerance to Phytophthora root rot, brown stem rot and SCN resistance. It also boasts exceptional seedling vigour and fall appearance. RR2 Capella is a 3200 CHU variety, also with Roundup Ready 2 Yield technology. This soybean variety is designed for heavier soils, and offers industry-leading seedling vigour combined with medium plant stature. It also provides excellent Phytophthora tolerance, is resistant to SCN and has moderate resistance to sudden death syndrome (SDS). October 2015
Pioneer P006T78R (R) is an early variety rated at 2425 crop heat units (CHU), offering very good field emergence and excellent harvest standability. It contains multi-race Phytophthora resistance via the Rps1c gene, and possesses above-average white mould tolerance, and is suitable for early planting and reduced tillage. P09T74R2 (RR2Y) is a new variety with the Genuity Roundup Ready 2 Yield trait rated at 2750 heat units with very good emergence and standability. It also features multi-race Phytophthora resistance and built-in soybean cyst nematode (SCN) resistance plus strong tolerance to brown stem rot. Canopy width is moderate. P15T46R2 (RR2Y) is a top-yielding variety rated at 2900 heat units with the Genuity Roundup Ready 2 Yield trait. It brings outstanding field emergence and very good harvest standability, plus strong brown stem rot tolerance and multi-race Phytophthora resistance via the Rps1c gene. It also has built-in SCN resistance. Avoid fields with a history of severe white mould pressure. This is a tall variety with moderate canopy width and strong resistance to shattering. P18T31R (R) is a high-performing variety rated at 2975 heat units with built-in resistance to glyphosate. Average field emergence and very good harvest standability combine with an excellent disease resistance package with multi-race Phytophthora resistance via the Rps1k gene, built-in SCN resistance and aboveaverage white mould tolerance. It has average canopy height and very good shattering tolerance which makes it highly suitable for delayed harvest. P28T08R (R) is a full-season glyphosate-tolerant variety rated at 3225 heat units with exceptional field emergence making it suitable for early planting. It also has built-in SCN resistance and multi-race Phytophthora resistance via the Rps1k gene. It is an excellent earlier-season companion to 93Y05 (R). P28T71X (RR2X) * is a new Genuity Roundup Ready 2 Xtend variety, with very good emergence and above-average harvest standability. It contains multi-race Phytophthora resistance via the Rps1c gene, plus built-in SCN resistance. It’s a good option to help growers manage glyphosate-resistant weeds on their operation. P31T38X (RR2X)* is a full-season Genuity Roundup Ready 2 Xtend variety with strong field emergence and good harvest standability. It contains multi-race Phytophthora resistance and built-in SCN resistance, and will help growers manage glyphosateresistant weeds on their operation. P31T52X (RR2X)* is a full-season Genuity Roundup Ready 2 Xtend variety. It contains multirace Phytophthora resistance via the Rps1c gene, as well as built-in SCN resistance. This variety brings very good field emergence and above-average harvest standability, making it another good option to help growers manage glyphosate-resistant weeds. Continued on page 34 country-guide.ca 33
Continued from page 33
PRIDE Seeds PS 0088 R2* is a 0.8 maturity group (MG) variety with Genuity Roundup Ready 2 Yield technology, and is ideally suited to the 2100 to 2500 CHU region. It provides excellent standability, early canopy and overall disease tolerance, with very good plant height and branching capability. PS 0088 R2 offers Rps 1c tolerance to Phytophthora root rot. PS 1210 NLL* is an introductory LibertyLink variety and a strong performer in the 2650 to 3000 CHU region with impressive yield for early MG 1 maturity, plus strong protection against soybean cyst nematode (SCN). It has excellent standability with strong early vigour with a bushy fill-the-row plant type. It brings very good white mould tolerance and helps with managing weed resistance. PS 1716 R2* is another introductory variety for the 2800 to 3000 CHU area with Genuity Roundup Ready 2 Yield technology. A high-yielding variety with a 1.7 MG, PS 1716 R2 has a broad adaptation across the late-maturity Group 1 growing regions, with exceptional emergence and early-season vigour, medium to tall plant height and an aggressive branching habit. It also carries a strong disease package against Phytophthora root rot and sudden death syndrome (SDS).
PROSeeds PRO 2845R2C is a new soybean cyst nematode (SCN)-resistant Genuity variety for the 2850 crop heat unit (CHU) production areas. This highyielding, mid-bushy variety is suitable for seven- to 15-inch rows on either sandy-loam or clay-loam soils. With a first pod height of 5.5 inches and great standability, it has excellent harvestability. PRO 2535R2 is the Genuity variety for those looking for an early harvest while not sacrificing yield. This medium-tall, mid-bushy variety has good spring vigour and will fill in 30-inch rows. This early 2755 CHU variety has very good white mould tolerance and good standability for the high load of beans it carries. PRO 2625R2, at 2675 CHU, is a variety that should be considered for yield on sandy-loam to clay-loam soils. This Genuity variety has an excellent disease package and excels on highly fertile soils. It should be planted at 15- or 21-inch rows as the canopy quickly fills for strong weed suppression.
SeCan Venture R2 is a new 2700 crop heat unit (CHU) soybean with Genuity Roundup Ready 2 Yield technology, yielding 103 per cent of the check in first-year Ontario Performance Trials. Venture R2 is excellent in the field with desirable pod height, plus Phytophthora root rot resistance and lodging resistance. It’s adapted to most soil types in Ontario but is particularly well suited to clay-loam soils. Altitude R2 is a 2725 CHU variety that showcases superior yield potential for a Genuity Roundup 34 country-guide.ca
Ready 2 Yield soybean. In first-year Ontario Performance Trials, it produced an impressive 114 per cent of the check. This aggressive performer is well matched to the 2700 to 2800 CHU region. It’s suitable for all row widths in both conventional and notill systems, provides good lodging resistance and is tolerant to Phytophthora root rot. Volt R2 is new for 2016 with a high-yielding Genuity Roundup Ready 2 Yield soybean. This 2950 CHU variety contains resistance genes for soybean cyst nematode and Phytophthora root rot. Volt R2 has done well in first-year Ontario Performance Trials, reaching 107 per cent of the check. It is broadly adapted to perform on all soil types, under both no-till and conventional systems and across all row widths. Equinox R2 is the fourth new addition to SeCan’s eastern Canadian soybean lineup. This 3150 CHU variety demonstrates superior yield potential compared to other Genuity Roundup Ready 2 Yield varieties in the same maturity range. It yielded 109 per cent of the check in first-year Ontario Performance Trials. In addition to having resistance genes for SCN and Phytophthora root rot, this variety features excellent lodging resistance and good pod height. It is a standout on clay and clay-loam soils.
Syngenta S06-C4 is a new NK brand soybean variety with a relative maturity of 0.6 for the 2700 crop heat unit (CHU) region. This variety typically emerges fast and strong, and stands well, helping ensure ease of harvest. S06-C4 offers a comprehensive disease package, including very good resistance to sclerotinia white mould, soybean cyst nematode (SCN) resistance and tolerance to Phytophthora root rot. S11-N4 brings top-end yield and excellent stress tolerance, making this new NK brand soybean variety an excellent choice for planting into variable soil types in the 2825 CHU area. S11-N4 has a 1.1 relative maturity and typically produces an ideal plant canopy and stand height for row-width adaptability. This variety offers protection against sclerotinia white mould and SCN, and has good field tolerance to Phytophthora root rot. S25-L9 is another exciting new variety from the NK brand, and offers great performance with outstanding harvestability. Suited to the 3150 CHU region and with a 2.5 relative maturity, S25-L9 emerges strong, produces solid stands and yields well under a variety of stress conditions. Containing the Rps1c gene, this variety offers above-average Phytophthora root rot field tolerance as well as strong sudden death syndrome (SDS) resistance. S32-L8 is the fourth new NK brand soybean variety, tailored to the 3250 CHU growing area, and broadly adapts to a range of soil types and tillage practices. With a 2.8 relative maturity, this variety yields well under stressful growing conditions and contains a dependable disease package, including Phytophthora root rot field tolerance, SDS resistance and SCN resistance. CG October 2015
By Ralph Pearce, CG Production Editor
too much information With today’s big data, it sure would help to have those provincial crop advisers back on the team hile agriculture in Canada has been evolving in the past 10 to 15 years, there has also been a curious evolution in the quantity and the quality of information available to farmers. In the late 1990s, at least in Ontario, the governing Conservative Party began scaling back on what was referred to as “bricks and mortar.” Instead of well-staffed offices of the Ministry of Agriculture, Food and Rural Affairs (OMAFRA) in each county, the government consolidated various ministry personnel into more centralized hub locations. Gone were the days of branch representatives and their assistants, plus engineers, home economists and a bevy of crop specialists in each district. Further cutbacks came in waves. Many in government and outside of agriculture viewed it as a portfolio that could endure such austerity and accompanying attrition. After all, “agriculture represents less than two per cent of the population,” farmers were reminded. But those attitudes have left the ranks of publicsector extension stretched thin across the province. Some see that as a significant drawback. Others see it as balanced by the wealth of information still available — and increasing every day — for growers, agronomists, retailers and other stakeholders. Whichever side you come down on, at least now we are mostly agreed on how to measure the outcome. It’s the answer you get when farmers ask, “where do I get the best information to help me farm in this current environment?” One person torn between the overabundance of information and resources versus the erosion of third-party perspectives is Mervyn Erb, a certified crop adviser (CCA) from Brucefield, Ont., north of London. On one hand, he’s inundated by the volume of information that he has to sort through and present to his clients — some of it on a daily basis. On the other, he’s fatalistic about the lack of publicsector input, feeling that since it was a government decision to cut back on services and personnel, there isn’t a lot anyone can do about it. “That’s the way the government wants it,” says Erb, who is one of a handful of independent CCAs in Ontario. “They’re helping to foster the unease in society with industry-based research. Whether it’s agricultural or pharmaceutical, there’s suddenly a large amount of unease about it.” October 2015
Erb concedes there’s almost too much information on hand, and that a significant portion of it can come with an accompanying sales pitch for a product or service. In his case, he’s expected to stay current on the latest trends, but he — like others in agriculture — must also keep his eye on older technologies, chemistries and management practices. Just because Roundup Ready Xtend soybeans are set to launch, it doesn’t necessarily render Group 2 chemistries obsolete. Agriculture doesn’t get rid of its old information: if anything, it catalogues it for that day when it’ll be needed again. “There’s no shortage of information but you have to know where it’s coming from,” says Erb. He agrees with the generalization that those over 60 may be slower in adapting newer technologies while those 30 or younger tend to be more computer adept and can operate a smartphone or an iPad. “But when it comes to agricultural science and research and recommendations, if we don’t have the likes of a Greg Stewart doing research, what do we do? Tune in to Emerson Nafziger or Fred Below at Illinois State University or somebody else at one of the land-grant universities in the U.S.?” That can work as long as the situation in that particular state or region closely mirrors conditions in Ontario or Eastern Canada. But when news alerts concerning aflatoxin in corn or the spread of Palmer amaranth hit the pages of Corn&Soybean Digest or AgWeb Daily, farmers need a trusted source to tell them that neither of those issues is a major threat to farmers in Ontario (at least, not yet). If that means they have to turn more to their dealers, advisers and agronomists to help them, however, in most cases, there’s not a problem.
The need to know Even so, there are exceptions dotting the agricultural landscape. Towards the middle of this past summer, Erb had a conversation with one grower who was in the market to have some soil work on his farm, involving elements of precision agriculture and variable-rate technology. “In all the literature he’d seen, there were sales attached to it and he knew it was going to cost a lot of money,” says Erb. “He wasn’t so sure of the benefit, yet it was touted as beneficial and all that good stuff. So he was looking for some independent thought on it.” Continued on page 36 country-guide.ca 35
CropsGuide Continued from page 35 It’s not to say the private sector is incapable of providing that independent thought or an unbiased opinion. Most CCAs, dealers and retailers operate with the grower’s best interests at the forefront of their business dealings. But it also helps to adopt the precautionary approach, and the credo, “let the buyer beware.” Peter Johnson understands, better than most, the push-pull relationship when it comes to distributing advice. The former provincial cereal specialist is now dividing his time between a variety of interests, including the University of Guelph and as an adviser for different companies. He agrees there’s far too much information out there available to growers. “If you want more information, just boot up your computer, open your inbox and accept all the emails from the companies, but I don’t know when you’d get time to go to your field to do your work,” says Johnson. “We are in an information-overload world, and that’s why this new generation wants the five-second text. They don’t want to talk on the phone, they want the five-second text and it better say in that text what’s in it for them, or they ignore it and just keep going.” The challenge with shortened attention spans is the same in extension and advisory services as it is with mainstream media reporting on agriculture: often the message requires more than just a five-
lutely,” says Johnson, adding that with fewer specialists and a greater focus on regulations, advisory services to the farmer will be affected. “I look at the direction, and this is not just neonicotinoids, it’s nutrient management plans, it’s livestock medicines, it’s this move towards increased regulation that’s concerning for an extension person because it’s liable to impact them. It doesn’t mean it will — that depends entirely on the marching orders given by management.”
Research cuts The other facet that’s affected by the attrition and the refocusing of resources and information is research, something farmers and other industry stakeholders perhaps took for granted. Most in the agri-food sector are unaware of the amount of research conducted by the field crops team, and the loss of Stewart and Johnson, as well as Bagg and Quesnel, is a particular blow to that aspect of public-sector resources. “Will the new corn specialist be able to do research the way Greg Stewart did?” asks Johnson, adding that it’s more than just the financial commitment that will be challenged. “They’ll have to figure a way around the ministry — you can’t do it through the ministry, you’ve never been able to do it through the ministry. That’s one. No. 2: Will they have enough credibility to get funding for good research? And three, will they be allowed to do it, or will they be so drawn into the vor-
“ We’re in an information-overload world, and that’s why this new generation wants the five— Peter Johnson second text.” second text on N rates or a 400-word summary on neonics. The devil is in the details, as the saying goes, and the current immediate-media world doesn’t always recognize that fact. Where his concern lies pertaining to government extension isn’t so much guarding against biases — Johnson is quick to note that even he had his own biases as the cereal specialist for Ontario, and so does everyone else. Instead the government’s extension service, particularly crop extension, is in a reboot phase. As of late August 2015, four crop specialists had departed from the ranks of OMAFRA field crops extension, with the expectation that two will be refilled — for corn and cereals. The forage specialist’s portfolio, formerly Joel Bagg’s realm, and the integrated pest management specialist’s position, occupied by Gilles Quesnel, will remain unfilled. And Johnson thinks that’s a mistake. Forage is one of the largest crops by area in the province, and to lump it in with pastures is misguided. The loss of the IPM specialist’s post is another confusing move given the government’s pledge to fight neonics and other chemistries, supposedly to adopt a stronger IPM focus. “Is there attrition? Yes. Does it worry me? Abso36 country-guide.ca
October 2015
CEREAL PRODUCTION tex of regulation and administration that they just never bother?”
Agriculture is alone It’s also worth noting that agriculture is unique in its public-sector, watchdog capacity. Forestry, mining, the automotive sector and many others are without a comparable, government-sanctioned arm that acts on behalf of its membership. And Johnson believes that service — which has been taken for granted for years — is part of the approach employed by the government when it came to securing those services. “Maybe the farmer didn’t do enough to remind politicians that they appreciated that third-party voice and that that was the most valuable thing — the research and the third-party information,” explains Johnson. “They could say, ‘That’s the No. 1 thing we want you to do, Mr. Minister of Agriculture, and second to that, we want support programs or some other aspect.’” It was always taken for granted that that’s what OMAFRA did, and if the minister went to a grower group or a farmer
and asked, “What do you want from my ministry?” that would usually be the reply. But there were assumptions made on both sides of the discussions. Farmers assumed the first dollar from the government was going to extension and that government was asking for their input on where and how to spend the second dollar. But the government assumed farmers understood there was only going to be $1 made available. So farmers said, “I’d like support programs,” and the government complied. Farmers thought third-party extension and research were considered default responsibilities of the government, but government was taking the farm community at its word without offering sufficient details. What’s left is the retraction seen by the government in the past 15 years (at least in Ontario). The default position at Queen’s Park is to assume the private sector will pick up the slack and provide that advisory service to the farmers. Is there plenty of information available to them? No question. But is it a matter of quantity versus quality? “And how much trust can you put in that information, because of its source?” poses Johnson.
mOBile
Societal input When it’s examined from all sides, there’s another component that Erb says is adding even more pressure to the situation. That’s the increasing involvement of special-interest groups outside of primary production. Non-farmers, political agendas and consumer activism are changing the landscape of the entire industry. The drive for information that’s unbiased and timely and that actually improves operations is now being diverted into sustainability and traceability, ideas that farmers support, but that are being driven by disconnected or even misinformed participants. “There’s more going on, and not just with agricultural research and crop production science,” says Erb. “There’s also a whole other battle you’re continually waging with environmental activism and consumer group activism and climate change activism and conservation authority activism and infringement upon personal property rights. It’s no longer the art and science of farming — it’s this deluge of stuff that you have to deal with. Otherwise you get run over.” CG
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CropsGuide # PestPatrol
with Mike Cowbrough, OMAFRA
ave a question you want answered? H Hashtag #PestPatrol on twitter.com to @cowbrough or email Mike at mike.cowbrough@ontario.ca.
How do I control tansy ragwort in my pasture? By Kate Ayers University of Guelph, Ontario Agriculture College ansy ragwort is a noxious weed most often found in pastures and hayfields. It is a biennial or short-lived perennial that reproduces through seeds and roots. Tansy is poisonous to livestock and can cause liver damage. Symptoms that may occur after plant consumption include: weakness, high temperature, inco-ordination and yellow mucous membranes. Currently, there is no known antidote for this alkaloid-based toxin. In Eastern Canada, there are four herbicides which list tansy ragwort on their labels as being controlled: Banvel II (dicamba), 2,4-D Amine 600, Milestone (aminopyralid) and Restore II (aminopyralid/2,4-D). It is unclear, from reading each product’s label, which herbicide would be the most effective at managing tansy ragwort. A trial was conducted to evaluate the performance of each herbicide. At the time of application, the majority of the plants was 15 cm tall and 10 to 20 cm in diameter (Figures 1 and 2). Summary: Milestone was the most effective herbicide evaluated in 2015. It caused the majority of plants to wilt and die. However, new plant growth has been observed since application but at levels much lower than all other treatments. Digging up tansy ragwort and removing all of the roots was also effective with no observed regrowth throughout the season. CG
Tansy ragwort size at time of application.
A flowering tansy ragwort plant during August.
Table 1. Summary of different management options to control tansy ragwort* Effectiveness Management strategy
Rate
2 weeks
7 weeks
Milestone
152 ml/ac.
80%
80%
Restore II
850 ml/ac.
80%
40%
2,4-D Amine 600
1.6 l/ac.
50%
30%
Banvel II
1 l/ac.
30%
10%
Mechanical control (digging)
Roughly 30-60 seconds per plant
100%
100%
*plant density was around 1,000/acre
38 country-guide.ca
October 2015
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business
Digital pursuits The list of tools to collect, manage and transfer farm data is growing. Here’s a look at some of the recent additions By Scott Garvey, CG Machinery Editor
Lehmann If your focus is on gathering more data rather than managing it, drone technology may be for you, and a new contender has recently stepped up with a high-tech offering. France’s Lehmann Aviation (www. lehmannaviation.com) made a move to break into the North American data-gathering market this spring with the launch of what it calls “an efficient and affordable” aerial system for precision agriculture. Its LA300 drone comes with a MicaSense RedEdge multi-spectral camera. Suggested retail price for the full flight package is US$8,990. The LA300AG drone is compatible with the latest version of Lehmann OperationCenter software
for flight preparation and mission control, which is designed to work with Windows8.1 tablets and PCs. The company claims OperationCenter is very user friendly. To get multi-spectral images of crops, the user just has to set waypoints on the touch-screen map of the area, and OperationCenter will automatically calculate all mission parameters. After the trajectory is sent to the LA300AG via Wi-Fi and the drone is launched by hand, it automatically accomplishes the flight and lands fully autonomously at the chosen site. The LA300AG can fly for up to 45 minutes at a range of up to 25 km (15.5 miles) and can cope with crosswinds of up to 35 km/h. Together with the RedEdge camera the LA300AG weighs 950 g (two pounds) and has a 92-centimetre wingspan. Continued on page 42
40 country-guide.ca
October 2015
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business Continued from page 40
Trimble Early this year Trimble announced the launch of its Android-based TMX-2050 display, along with a suite of mobile apps, all of which are intended to allow producers to increase their on-farm connectivity through the brand’s Connected Farm telematics offering.
“The TMX-2050 display provides growers with an environment they are already familiar with since it uses the same Android-based platform used by many mobile devices today,” said Erik Ehn, Smart Machines business area director of Trimble’s agriculture division, in a company press release. “Growers are able to customize the display screen with applications that are most important to their workflow.” The display includes Trimble’s Connected Farm Scout, Fleet, Productivity, Operator, and Irrigate applications. Also available on the display is the Connected Farm dashboard, which provides access in one central location to key information such as rainfall totals, weather forecasts, commodity tracking, planting coverage, aerial imaging, irrigation monitoring and control. Although some Connected Farm applications may require additional purchases of hardware, data plans or service subscriptions, growers will also have access to third-party mobile applications.
John Deere
New Holland
If you run older John Deere equipment that isn’t JDLink-compatible or if you have a mixed fleet, transferring files wirelessly to and from all your machines is now easier. In June, Deere introduced its Mobile Data Transfer device, which can be plugged into the USB port of an in-cab monitor to create a Wi-Fi signal that allows you to use your smartphone to transfer agronomic files wirelessly. “It eliminates the manual transfer of data,” said Jeff Nolting of John Deere’s Intelligent Solutions Group in a release. “Your phone sends the data to the Operations Centre to give farm managers and trusted advisers immediate access.” Deere has also introduced the MyJobs app for smartphones. It allows farm managers to plan jobs through the brand’s cloud-based Operations Centre and to send the details of them to each employee’s smartphone in real time.
This spring New Holland added some major upgrades to its PLM Connect telematics system that are also intended to make on-farm data transfer easier. Producers using blue equipment will now be able to wirelessly transfer a variety of real-time data between their machines and the farm office via the brand’s cloud-based PLM Connect portal. The upgraded PLM Connect features now allow machines to be monitored from the farm office, and settings or operating instructions can be sent to an operator in real time. It also further increases the degree of interaction that is possible between machines at work in the field and a manager in the farm office, so wireless transfer of data, such as yield maps, fuel usage and job status, between the machine and the cloud-based PLM Connect portal are now possible. The information can then be accessed on a PC or tablet. CG
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Training The Canadian Centre for Unmanned Vehicle Systems in Foremost, Alta., provides 1.5-day training courses to people in all industries, including ag if you decide to bolster your farm fleet by adding a drone — or, to use its more formal name, an unmanned aerial vehicle (UAV). There are federal rules governing UAV operation, and the course will teach pilots how to comply with them. “We help them navigate that regulatory environment,” says Doug Hanna, a project manager at CCUVS. Other important aspects of flying are also included in the course. The centre has a dedicated training area in Foremost, but Hanna says it may consider holding courses in other locations if there is a large enough group. For more information check out the website at CCUVS.com.
Trait Stewardship Responsibilities Notice to Farmers Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. Commercialized products have been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. Excellence Through Stewardship® is a registered trademark of Excellence Through Stewardship. ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Acceleron® seed treatment technology for canola contains the active ingredients difenoconazole, metalaxyl (M and S isomers), fludioxonil and thiamethoxam. Acceleron® seed treatment technology for canola plus Vibrance® is a combination of two separate individually-registered products, which together contain the active ingredients difenoconazole, metalaxyl (M and S isomers), fludioxonil, thiamethoxam, and sedaxane. Acceleron® seed treatment technology for corn (fungicides and insecticide) is a combination of four separate individually-registered products, which together contain the active ingredients metalaxyl, trifloxystrobin, ipconazole, and clothianidin. Acceleron® seed treatment technology for corn (fungicides only) is a combination of three separate individually-registered products, which together contain the active ingredients metalaxyl, trifloxystrobin and ipconazole. Acceleron® seed treatment technology for corn with Poncho®/VoTivo™ (fungicides, insecticide and nematicide) is a combination of five separate individually-registered products, which together contain the active ingredients metalaxyl, trifloxystrobin, ipconazole, clothianidin and Bacillus firmus strain I-1582. Acceleron® seed treatment technology for soybeans (fungicides and insecticide) is a combination of four separate individually registered products, which together contain the active ingredients fluxapyroxad, pyraclostrobin, metalaxyl and imidacloprid. Acceleron® seed treatment technology for soybeans (fungicides only) is a combination of three separate individually registered products, which together contain the active ingredients fluxapyroxad, pyraclostrobin and metalaxyl. Acceleron and Design®, Acceleron®, DEKALB and Design®, DEKALB®, Genuity and Design®, Genuity®, JumpStart®, RIB Complete and Design®, RIB Complete®, Roundup Ready 2 Technology and Design®, Roundup Ready 2 Yield®, Roundup Ready®, Roundup Transorb®, Roundup WeatherMAX®, Roundup®, SmartStax and Design®, SmartStax®, Transorb®, VT Double PRO®, and VT Triple PRO® are registered trademarks of Monsanto Technology LLC, Used under license. Vibrance® and Fortenza® are registered trademarks of a Syngenta group company. LibertyLink® and the Water Droplet Design are trademarks of Bayer. Used under license. Herculex® is a registered trademark of Dow AgroSciences LLC. Used under license. Poncho® and Votivo™ are trademarks of Bayer. Used under license. All other trademarks are the property of their respective owners.
Plan to attend the...
2015 6 Annual TH
CFGA Conference & AGM November 17-19, 2015 Canadian Forage in the International Year of Soils – Capture the Intensity! Sheraton Cavalier Hotel, Saskatoon, Saskatchewan The 6th Annual CFGA conference will highlight the profitability of intensive forage production systems and the potential of forages to provide ecosystem goods and services for all Canadians.
Canadian Forage & Grassland Association Association Canadienne pour les Plantes Fourragères
For more information please contact: Canadian Forage & Grassland Association Ph: (204) 254-4192
www.canadianfga.ca O cto b e r 2 0 1 5
country-guide.ca 43
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Finding a New way Theirs may be among the smallest loan the Manitoba Ag Services Corporation has on its books, but business is looking up
griculture has always attracted all kinds, including from the fringe. There have been the hippie back-toearthers of the 1960s and even the New Agers of just a decade ago, all of them dreaming of an escape from the confines of city life partly so they can commune with nature on a handful of acres with a hoe in their hand. Make no mistake, they’re still coming. But now, maybe there’s something different going on, with new farmers and a very different money sense. With partner Wian Prinsloo, Lydia Carpenter operates Luna Field Farm near Dunrea in southwestern Manitoba, and they fit the mould of today’s new farmers perfectly. Recent surveys have found an uptick in new farmers who don’t have any background in farming, and Carpenter and Prinsloo are both from Winnipeg. Neither grew up on a farm. Carpenter and Prinsloo have been farming here for the past four years, raising pastured pork, sheep, poultry and beef on a half section of rented pasture, and direct marketing their grass-fed meat products to customers in Winnipeg, Brandon and surrounding areas. They’ve also been creating a kind of template that others will likely follow, they believe. “The next generation of people entering into agriculture, they’re really going to have to do this because they’re not going to be able to cash flow any other type of operation,” Winsloo says. “I’m optimistic that this type of farming pays, so if people can discover that for themselves, then more people will do it.” Carpenter studied environmental science and geography at the University of Winnipeg, earning a master’s degree in natural resource management. During her studies she became fascinated with sys44 country-guide.ca
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Photography: Sandy Black
By Angela Lovell
business
tems ecology, rural livelihoods, and food. After meeting Prinsloo, she decided she wanted to farm and put some of her ideas and theories to practical use. By the time Carpenter met Prinsloo — who grew up in South Africa and moved to Winnipeg at 15 — he’d spent years learning about farming by working on different farms that he felt would give him the skills he needed. Through those years, he’d also either begged or rented a small patch of land wherever he went to raise pastured poultry which he sold to a growing customer base in Winnipeg. Carpenter and Prinsloo see their urban upbringing as more of a benefit than an impediment. “Our naiveté and an absence of farm family pressures allows us to ask questions and try new things,” says Carpenter, who adds that mentors — rather than a traditional agricultural education — have been hugely important in helping them learn to farm. “We have sought out people who we respect for the work they’re doing, and there are lots of individuals in our community that we go to with questions.” The couple’s philosophy is that they don’t need to own the land they farm on, just manage it. But the challenge is to have a secure land tenure agreement that allows them to farm the way they want to long term.
Secure land tenure agreements “We were farming 80 acres about five miles from here, but we weren’t sure of our land tenure position, so we were trying to think of other options and we realized that working with somebody who shared our vision was going to be important, because they could understand how we’re trying to manage the land,” says Carpenter. Then they ran into local farmer, Dave McNish, a holistic management practitioner who, along with his son, owns the land and yard site they now rent, and who was actively looking for someone to mentor. McNish had posted a letter in a newsletter a few years earlier offering an opportunity to work and learn alongside him on his farm. Prinsloo recalled seeing the letter and contacted him to see if he was still looking for someone. He was. The couple has a rolling, three-year-lease term with McNish that renews every year. “We always know we’ve got three years,” says Prinsloo. “Ideally we would own some of the land we operate on so we could have a stable, long-term base on which Continued on page 46
Come and join us for the
SUMMIT ON CANADIAN SOIL HEALTH Tuesday, December 1ST, 2015 11:30 a.m. – 4:30 p.m. Hyatt Regency Hotel, Calgary, Alberta • Hear best-selling author, Dr. David Montgomery, talk about the importance of our soil. • Learn more about soil health challenges and potential solutions from leading farmers. • Interact with industry, science and government panelists to learn how these groups are working to improve soil health. October 2015
Be part of the solution! Register for the Summit today. soilcc.ca Registration fee: $150. (Includes 2016 membership) No charge for GrowCanada attendees.
info@soilcc.ca 204-792-2424 www.soilcc.ca Follow us on Twitter
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country-guide.ca 45
business Continued from page 45 to build our home, and from which we could expand our operation. Land is very expensive for those who want to start farming. For now, we can continue to operate and expand on leased land and will manage the land as if it were our own.” The couple has realized their first goal of being able to farm full time. Carpenter gave up her job teaching English as an Additional Language in Brandon when they moved to their current site, and the only off-farm work Prinsloo takes is casual work as a crop insurance adjuster. Despite misgivings about losing a steady offfarm income stream, they are not only making a living but also getting a lot of satisfaction from farming. “We like managing our own business and working for ourselves, and because we feed people there’s a lot of meaning around our everyday work,” says Carpenter. “Farming allows Wian and
I to work together, problem solve, learn from others, learn from our environment, and provide our community with healthy food. We’re challenged every day to make decisions that impact how we care for land, animals, family and friends.”
Creating a cash flow stream A common challenge for new farmers is that their lack of an asset base means they don’t have security to borrow money from traditional banks and credit unions. Thus they have to find new and creative ways to finance and cash flow their operations. “We’ve developed some creative ways of creating cash flow for the business,” says Carpenter. Importantly, those include a focus on direct marketing and diversifying into enterprises such as grass-fed lamb and beef and pasture-raised pigs and poultry. “Our customers cash flow parts of the business. There are certain things on the farm that we can take prepayment for, like eggs for example, where
For Carpenter and Prinsloo, realizing their farm dream meant finding opportunities to generate more cash flow.
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business we provide a regular delivery and people pay six months in advance,” says Carpenter. “The reason we don’t do farmers’ markets is because, instead of standing at a stall for hours, our time is far better spent responding to customers who contact us by phone or email. I can let them know what we have, and we know that when we deliver a load of food it’s all spoken for.” They’ve had to borrow money from time to time and that’s often come through non-traditional lenders. “We’ve had private lenders give us small, interest-free loans, and often it’s been other farmers,” says Carpenter. “Some people have also cash flowed us through accepting payment later on things or working out payment plans.” The couple has been savvy in their marketing approach, which was building slowly through word of mouth, but then snowballed after Carpenter took over the marketing side in 2009 and began to employ social media such as a website and Facebook, which adds efficiency to direct marketing. They’ve even begun to work with traditional lenders. “We had a loan out with Manitoba Agricultural Services Corporation and the person we dealt with said it was probably the smallest loan she’s given,” says Carpenter. “But for us that amount
of money could generate quite a bit of cash flow because our margins are better on our value-added, direct-marketed products.” Carpenter and Prinsloo keep their needs for cash low by having very little machinery apart from an old tractor, a couple of quads, flatbed trailer, stock trailer and a truck. “We don’t hay, and we don’t plant anything. So the cash flow requirements on depreciating assets is minimal,” says Prinsloo. “We are investing in appreciating assets and using funds to stock the land,” he says. “That way, we’ll have something to borrow against and may be in the position to buy some land in the area.” Essentially, they’re building equity in inventory, with the idea that they will be able to convert that equity to land equity when the opportunity arises. “The business is already in place,” Prinsloo explains. “And we can demonstrate that we’re creating cash flow from the operation through direct marketing.” They focus on what they have, rather than what they lack, and they understand their most valuable resource is the soil. The couple is working to continually improve the land through planned, multi-species grazing. Says Continued on page 48
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country-guide.ca 47
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Continued from page 47 Carpenter, “We may be referred to as farmers but we like to think of ourselves as land managers.” “What we try to convey to people consuming this food is that they’re paying for our management and our time,” adds Prinsloo. “Our customers are sharing the responsibility to improve the land. It’s almost like carbon credits in a sense… a lot of people understand that right away.” As part of a vibrant food community, the couple participates in a lot of events such as the annual Growing Local Conference in Winnipeg, and they also host customer and producer tours, like summer Grazing Club tours funded by Ducks Unlimited Canada that this year attracted around 50 producers from across Manitoba to see their planned grazing system.
Focus on what they have, not lack They are also part of the slow food movement, and Carpenter, along with 14 other Canadian youth delegates has been invited to attend a Slow Food Youth Network this fall in Italy. Says Carpenter, “The slow food movement creates a certain level of camaraderie around the culture of food that is perhaps missing in North America, but is very strong in other parts of the world. Italy is a good example,
where they can see very clearly the ramifications of moving away from the type of food culture that they have. It’s a bigger picture — it’s care for the food. The fact is that life itself should be delicious and it should include family, friendship and eating. Many of our customers are very familiar with these organizations.” As for the future, the main goal is to continue to make a living off the farm and to continue to grow, but also to get better at the management side of their business. “We’d like to grow the cow herd but with the current prices that’s a bit of a challenge,” says Carpenter. “Right now we’re putting in some more infrastructure, maybe a pipe water system or some way to increase waterholding capacity on the land. In the next five years, I see we’ll probably take on more land for grazing. This year we had an apprentice with us through the SOIL apprenticeship program. So we could see having a few more people on the farm working with us and helping us out.” They also believe that the rural landscape needs more new farmers doing what they are doing, and Carpenter talks of “creating an awareness of the opportunities in this type of farming.” “This is the only way for us to farm. We could never have jumped into a grain operation and been able to have the funds and the cash flow,” Carpenter says. “We’re creating wealth out of the actual management.” CG October 2015
The Canadian Association of Farm Advisors (CAFA) Inc. is a national, non-profit professional umbrella organization dedicated to assisting farm families and businesses by increasing the skills of farm advisors and consultants.
www.cafanet.com
The Agriculturalization of Professional Advisors By John Goudy
W
hat do you do if you’re a professional advisor stuck in the office wishing you were out farming? You join CAFA. You bring your skills and your knowledge of finance, tax, accounting, law, insurance, land and business valuation, agrology, marketing or other disciplines to agriculture, and in exchange you get out of the office and get involved in the business of farming. The professionalization of agriculture in Canada is driving a need for the agriculturalization of professional advisors. Fortunately, both for farm families and businesses and for office-bound advisors with a love of farming, CAFA is meeting that need. Through regular local chapter meetings, provincial and national conferences, and other special events, CAFA professionals stay on top of developments in the agricultural industry and build and maintain a network of connections that enhances the services they provide. Many situations faced by farm businesses present complex challenges that involve multiple disciplines – farm succession planning is a prime example. CAFA advisors who can help in one area have ready access to a network of engaged, educated and experienced farm advisors to fill a role in another area where the need arises.
”Many situations faced by farm businesses present complex challenges that involve multiple disciplines – farm succession planning is a prime example.” And farm advisors themselves benefit from networking with other professionals who are interested in agriculture. I farm north of London, Ontario, but I mostly practice law (I’m still ironing out the work/ work balance). The vast majority of lawyers I know don’t have a background in farming and don’t share my interest in farming. CAFA members share my interest. The other professional organizations to which I belong don’t offer continuing education programs on agriculture. CAFA provides that ongoing education. If you’re a professional advisor itching to get back to agriculture, or an agricultural advisor looking for the support of a professional group interested in agriculture, find your local CAFA chapter and attend a meeting. Come out and listen to a guest speaker and talk to CAFA members about their experience. Then take the next step
Toll free: 1-877-474-2871 Email: info@cafanet.com PO Box 270 • Seven Sisters Falls, MB • R0E 1Y0
and join CAFA. Attend meetings, expand your knowledge, build professional networks and become a certified CAFA farm advisor. Current, Connected and Certified. If you’re a farmer in need of professional advice, look for CAFA’s extensive directory of farm advisors all across Canada. You’ll find advisors who share your interest in agriculture and who have the support of a multi-disciplinary network of agricultural advisory professionals. Professional advice for today’s professional farm. John Goudy is a partner in the law firm of Scott Petrie LLP in London, Ontario. His practice is focused in the areas of commercial and environmental litigation, expropriation law, energy regulation and regulatory offences. John is the author of the blog Law of the Lands – Farm, Energy and Enviro Law – Legal Information for Landowners: www.landownerlaw.blogspot.com.
Follow us on Twitter @CAFANET
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Watching for rain in Australia Warren Hobson’s reservoir is built to hold 18 feet of water. There’s one foot left By Scott Garvey, CG Machinery Editor he farmers were smiling. They were attending one of this country’s premier machinery expos in Gunnedah, New South Wales, and the weather forecast was calling for widespread rains across the region. In Australia, that is a reason enough to smile. Rain in this country is a precious and sometimes scarce commodity. Even a few millimetres can lift farmers’ spirits. The machinery reps who work the show’s exhibits know the pattern too. Across much of the state, they’re used to seeing the fortunes of its farmers ebb and flow on a five-year cycle that is driven by rain — or the lack of it. For two of the five years, there’s very little moisture and crops are poor. For another two, adequate moisture provides a fair crop. And then there’s that one bin-busting, golden year that makes up for all the others. Farmer Scott Doyle summed it up as we stood on the edge of a canola field on his 2,000-acre farm about 15 minutes from the city of Tamworth, a four-hour drive north of Sydney. Pointing due west toward the town of Gunnedah where the Commonwealth Bank AgQuip Field Days machinery show is held every year, Doyle says, “Over those hills, that’s the Liverpool Plains. It’s never gone without growing a crop, it’s good soil, whereas we, if we don’t get rain…”
Doyle doesn’t need to finish the sentence. In northern Australia, an extended drought and unexpected restrictions on exports of live cattle to Indonesia (their biggest market) have virtually bankrupted large numbers of livestock producers. To the south, by contrast, most of New South Wales has fared much better despite low precipitation in the last couple of years, and this year crops also look good. At the AgQuip show, there were a few Canadianbuilt no-till drills and air carts on display. Many farmers, including Doyle, have made the switch from tillage to no till in the last decade. It required a leap of faith, just as it did for Canadian farmers.
Scott Doyle runs a mixed farming operation with his brother, Lindsey, near Tamworth, NSW.
Both cattle and sheep are important to many farmers in New South Wales, Australia. 50 country-guide.ca
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business “I haven’t tilled since I’ve been doing zero till,” Doyle says. “And I’ve been doing it since about 2005. I just jumped off and went into it. And the first year I thought, what the hell have I done, because the crops didn’t yield all that well. But as the system gets going, the yields get better.” Initially, Doyle’s neighbours were skeptical too, but no till has helped manage their moisture limitations in Australia. Now, however, other concerns are emerging, and Doyle expects to go back to some tilling in the future. “We will have to till,” he says. “We’ve found diseases and spray resistance. That’s our big thing, because we’re very reliant on Roundup.” Canola is a winter crop in Australia, and Doyle expected to be harvesting the field by October. However, on this day in late August, there was still some risk of frost, which is a problem that accounts for a lot of lost yield on winter crops across many graingrowing areas of the country. Across the fence, a herd of black cow-calf pairs were grazing. Cattle can graze year round, but it’s common practice to seed an annual crop and turn them into it to increase their rate of gain. “That green paddock, that’s oats we put in for winter,” Doyle says, looking off in another direction. “That tops them off a bit. Then in the summer we put a forage sorghum or a legume in. There are natural grasses, but you need to put a crop in to get the fat score up.” The Doyle family has farmed this land since it was acquired by his grandfather through a statesponsored veterans’ program. Now he and his brother, Lindsey, are in charge.
Rainwater is collected from the roofs of machinery storage sheds on Quia Station.
They call it a station Warren Hobson’s farm south of Boggabri is still described as a station — “Quia Station” to be exact. I met him when I stopped at an isolated crossroads in an area of the Liverpool Plains that is made up primarily of broad-acre farms, very similar to Western Canada. Hobson was making a liquid nitrogen application to a barley field that he had allowed his cattle to graze on earlier in the winter. Farmers in the region generally wait to see what growing conditions are like before committing to a full fertilizer application. With the news of rain in the forecast, it made sense to start topping up inputs. Hobson uses some tillage to control weeds and deal with other problems as needed. “A couple of tillage passes and a spray each season,” he says. There is no-till equipment in his shed but glyphosate resistance is a problem, as it is almost everywhere in this country. The crops in this area looked good as well, but water reservoir levels on Quia Station were running low, especially in dams built to supplement well water supplies for livestock. “They’re 18 feet deep, but there is only about a foot of water left,” explained Hobson. Metal or plastic water storage tanks are a comOctober 2015
Warren Hobson farms Quia Station near Boggabri, NSW. mon sight in both urban and rural locations. The Hobsons’ station also uses them to collect rainwater run-off from machinery shed roofs. The Liverpool Plains actually sit on a large aquifer which feeds deep-water wells and allows these farms to exist. But many farmers think its water supply may be in jeopardy from proposed energy and natural resource development. The pending startup of another open-pit coal mine and proposals for shale gas development in the region are causing concern. Environmental studies made public suggest the risk to the area’s underground water supply is minimal. But locals aren’t convinced. For them, any risk is too high. Without well water in an already dry region, there is no future for farmers. The defiant sign Hobson wired up at the entrance to Quia Station, like those at so many other farms in the area, says it all: “Farms not gas. Lock the gate.” CG country-guide.ca 51
HR
Why smart entrepreneurs do stupid things with money
By Pierrette Desrosiers
mart money management flows more from psychology than from math. Even very bright people make terrible financial choices. If we are honest, each of us has a story about how we’ve done dumb things with money. These irrational choices are often the product of some psychological or emotional impulse. As leaders, we think we make rational decisions concerning our business’s profitability, but today, I hope you learn one thing: You are not so rational. “Behavioural finance” and “behavioural economics” explore how money management is more influenced by our emotions than by reason. We might also think that external factors like interest rates and commodity prices might explain a farm’s success, but let’s imagine two farmers who farm side by side, and who started farming in the same year by buying farms of the same size and value, with approximately the same equipment. We have all seen it: 30 years later, one may have a net value of millions while the other is bankrupt. That is when we realize something. A series of microand macro-decisions have led to positive results in one situation, but a negative outcome in the other. In any business, some of us will be very successful and others will fail, despite similar external environments. Of course, some have very bad luck, but others make too many irrational money management decisions. Some people desire to be the biggest in their industry and compare themselves to others in their town, province or country. Their decision to invest isn’t really based on the profitability but on the idea that another farmer could get ahead of them, perhaps in the number of acres owned, results by acres, or units of animals. Any criterion can become a number to compare, like the size of our tractor or the number of cars we have. I’ve even met women who compete to have the most children. If the sister-in-law is pregnant, they decide to have another child. How can we increase our awareness and implement more rational money habits? • Reduce your exposure to status-based advertising. We become frustrated when we see those images of everything that we don’t have. We are bombarded with amazing success stories that influence us whether we want them to or not. The less you are exposed, the less you will use your energy to manage your jealousy and your desire for higher status. • Avoid temptation. If you want to reduce your equipment investment, stop going to dealerships “just to
look at what is new.” You can exhaust your reservoir of resistance to those promises of happiness. • Think twice and pause. Ask yourself, “What is the need I’m trying to fill with that ‘investment?’” How could I fill that need with something else? • Remember the trade-off. If I invest in X, what do I have to give up? Will you have to say no to other things? People who buy beyond their means through debt give up their freedom to choose in the future. • Distinguish between needs and desires. We’ve been brainwashed to think we need big farms, big barns, and luxury items to feel worthy and to be respected. We never have enough. Unfortunately, in agriculture we have been influenced by materialism as much as everyone else; only our vehicles are different. • Recognize irrational beliefs: 1. “If I earn enough money and own enough of the right stuff, I will earn the love and the attention of others.” False: You can earn attention, but only the attention of the people who judge others by what they possess. And you cannot earn love. Is this really what you want to be recognized for? 2. “If I possess X, I will be happy.” Think about all the things you possess. If every new acquisition made you happier, you should be very, very happy today. You always go back to your “happiness set point.” If you want to be happier, invest in gratitude, in your relationships, and in benevolence but not in more land, more tractors, or more trophies. 3. “I deserve a brand-new pickup; I work so hard.” It is not a question of whether you deserve it but whether you can afford it (in the short and long terms). 4. “ When I have this, it will make me feel better, greater, and prouder.” Will you still feel so proud when you realize how much it is costing you, and how many other things you could do with that money? Finally: Ask yourself the Socratic questions: Is it true? Are my choices making me happier? Is it good? Do the consequences of my money habits make me feel good in the long term? Is it useful? Are my beliefs and habits helping me reach my goals? Are they aligned with my values? Take back your brain.We may never be able to be completely rational about our decisions; only a robot could do that. However, we can examine our beliefs and our emotions: pride, guilt, ego, desire, fears etc., all play a role in our decision-making. You have to choose who drives the bus, and who drives the tractor. 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. 52 country-guide.ca
October 2015
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life
Get more done! Do you spend hours working in the farm office to emerge at the end of the day disappointed with how little you have accomplished? By Helen Lammers-Helps ou’re not alone. For most of us, the time we spend in the farm office is less efficient and productive than the time we spend on almost any other farm activity. To help, we asked two professional organizers to weigh in with their tested and proven ideas on how to streamline your office procedures to avoid time-wasters and accomplish more. Rhonda Erb recommends starting with the basics. The overarching principle of organization is that everything needs a place, says Erb, a professional organizer with a business called Heart of the Matter based in New Hamburg, Ont. It doesn’t really matter whether that organization system is a paper system or an electronic one, she says. The important thing is that it is a system that works for you. Of course, there are advantages for electronic systems, such as the freedom to work remotely, or having multiple people accessing the same information through a shared platform. But keep in mind, says Toronto professional organizer and productivity consultant Deanne Kelleher, it’s also critical that everyone be able to use your system, whatever it is.
RESOURCES www.organizemindfully.com There are podcasts by Mark Dillon who will soon be releasing his book, Organize Mindfully — 7 Steps to Create and Maintain Order in Your Life. www.kaosgroup.com Deanne Kelleher’s site offers tips for organizing the office, kitchen, closets, time, etc. www.gettingthingsdone.com Here you’ll find podcasts on time management by David Allen. Or read his book by the same name. www.peterbregman.com/18-minutes In his book, 18 Minutes: Find Your Focus, Master Distraction, and Get the Right Things Done, author Peter Bregman shares a process for prioritizing your day in three steps that take 18 minutes over a nine-hour workday: Set your plan for the day, refocus every hour, review how you spent your time.
54 country-guide.ca
Sometimes it’s best to put a system in place that everyone is comfortable with now, and then move towards a more high-tech system in two to five years, says Kelleher who is confident that everyone can eventually learn a new system, no matter how old they are. Erb cautions that if you are relying on electronic systems, be sure you are backing up your computer regularly. Even then, however, don’t think you will be able to get away from paper completely. Both Kelleher and Erb say the paperless office is a myth, so you are still going to need a way to organize the paper in your life. Otherwise you can too easily end up simply stacking, instead of filing, says Erb. Research shows that those stacks are time-wasters, even if you’re one of those people who tell yourself that you actually know where everything is. One study found such people touched each piece of paper in their office an average of nine times, she says. Erb likes to use a Hot File for managing temporary paper such as invitations, flyers, receipts, newsletters, and research on a purchase you are considering. “Open the mail beside the recycle bin,” continues Erb. Then make a decision to file it or toss it right away, she says. Kelleher developed the Core Four System to tame paper clutter. For this method, take four shoe boxes and label one each: To-Do, To-Pay, To-File and To-Read. Sort the piles of paper into one of the four boxes. For the To-Do box, write each task down in one place such as a notepad. This lets you see them all in one place. If a To-Do is an appointment, enter it into your calendar. For the To-Pay file, create a To-Pay folder and put all in-coming bills into the folder until it’s time to pay them. Once paid, bills go into the To-File pile. Create a larger container for the To-Read pile. Use a highlighter or sticky notes to indicate information you want to save. Once read, file or scan an item to be saved and recycle the rest. The To-File pile represents papers you want or need to keep. Create a filing system using titles on hanging folders that make sense to you.
October 2015
life
As new paper arrives, follow the Core Four System to maintain your productivity and reduce stress. We are all different, and the important thing is to develop systems that work for you. Some people who are very visual will feel more comfortable if information is where they can see it, says Erb. For a farmer client who was very visual and liked to pile papers, Erb created several “hanging piles” on a board using large appropriately labelled magnetic clips. He liked this system, she explains, because he could see them all at a glance. But this isn’t enough on its own to turn your office mess into a marvel of organization, says Kelleher. Actually getting organized requires behavioural change, which means it takes a lot of effort. Her advice is to evaluate your current systems, acknowledge what you’re doing well, and then choose one area to focus on where you want to improve. If you need a little help to establish new routines, you can take a course to improve your methods. However, hiring a business coach or professional organizer will give you more hands-on help to set up processes. The advantage of hiring a third party is that they will see things objectively and will hold you accountable for adopting better habits. The upfront investment can pay dividends in improved productivity. Lori Straus felt overwhelmed by the huge “to-do” pile she inherited when she was hired to manage a theatre in Waterloo, Ont. She hired the professional organizers at Heart of the Matter to help her develop processes for dealing with the backlog of paper. “It let me get so much more done,” she says. The biggest challenge, Straus says, was developing new habits. In fact, it took about a month, with followup visits from the professional organizer to ensure she stayed on track. At the time, Straus says she was working mostly with paper but today, as a writer, she works mostly electronically. She uses the “reminders” option on her Mac computer to set “to-do” dates to work on projects at a later time. She adds notes so she will remember what still needs to be done. (The Outlook email program has similar functionality.) The Mac Automator program is also useful for keeping track of repeat task lists for event planning. One of the biggest time-wasters for people is spending time on things that aren’t aligned with your goals, says Kelleher. It’s too easy to put our effort into things we like doing rather than the things that would really contribute to the success of their business. That’s why, Straus says, it’s important to set goals and then monitor your tasks to ensure that they are furthering your goals.
October 2015
Streamline your office
Check out these organization tips from Deanne Kelleher, professional organizer
5 Tips for Managing your email 1. Consider creating a Personal Folder and a Professional Folder. Then add subfolders as required. 2. Create a naming protocol for primary and secondary folders. 3. Create To-Do or Waiting-On folders to hold information that is still in process. 4. Create a To-Read folder to save articles of interest to Evernote (www.evernote.com). 5. If you have more than one person in the office, create a naming convention policy that everyone can implement. Write the details in your Operations Manual.
5 Tips for Desk Space WorkFlow 1. Create an L-shaped working area. 2. Make sure your space is ergonomically correct. 3. Keep essential information and tools within reach. 4. Remove items that are not essential. 5. Schedule time at the end of each day to clean up.
5 Tips for Paper Flow 1. Create a place for in-coming and out-going mail. 2. Use graduated file sorters to easily access daily files. 3. If you can access it online — then do! 4. Put it away after you take it out. 5. Keep present-year financials on file and archive the rest.
A good place to start is with email, our experts agree. Email and social media can be black holes when it comes to time usage. Set aside a block of time for dealing with emails, suggests Erb. The same goes for social media, says Kelleher. Going back several times a day to either, she says, is simply inefficient. CG
country-guide.ca 55
w e at h e r
d Mil ered tt w Sca / sno rain
ONTARIO
O ra cca in s / s ion no al w
MILDER THAN NORMAL
**
ld y Co ow Sn
MILDER AND DRIER THAN NORMAL
NEAR NORMAL
**
NORMAL TEMPERATURES AND PRECIPITATION
Cool spells Some rain / snow
R IE DR L D UA ANUS R N DE A IL TH M
M So ild ra me in
COOLER THAN NORMAL
October 18 to November 14, 2015
Oct. 18-24: Seasonal to occasionally mild but nighttime frost at some central and northern locations. Windy at times. Fair overall apart from scattered rain changing to snow in northern regions on a couple of days. Oct. 25-31: Generally fair but look for unsettled conditions on a couple of days with occasional rain in the south. Patchy frost. Frosty nights with wet snow on two or three days in the north, possibly heavy in places. Nov. 1-7: Windy on many days this week with variable temperatures. Nighttime frost in pockets south, more extensive central and north. Fair aside from some rain in the south changing to occasional heavy snow in the north. Nov. 8-14: Temperatures fluctuate but trend to the mild side. Windy at times. Lows near zero in the south with sub-zero lows and occasional snow in the north. Generally fair aside from scattered rain/ snow south, heavy snow north.
QUEBEC Oct. 18-24: Temperatures vary but lean toward the mild side. Some lows approach zero in the south. Blustery at times. Fair but with intermittent rain on a couple of days. Cool with heavier rain in the north and a chance of snow. Oct. 25-31: Expect unsettled weather this week with occasional rain and gusty winds. Changeable temperatures with some frost in the south and central areas. 56 country-guide.ca
Cool in the north with periodic rain or snow. Nov. 1-7: A bit cooler with blustery winds and occasional rain, chance heavy in places. Frost pockets south, more widespread central and north. Precipitation changes to snow in northern regions, heavy at times. Nov. 8-14: Generally fair in the south apart from a couple of days with snow or rain, becoming heavier snow in central and northern regions. Nighttime frost. Windy from time to time with changeable temperatures.
ATLANTIC PROVINCES Oct. 18-24: Expect seasonable temperatures but with some highs in the double digits. Fair on several days but with some rain on a couple of days this week. Lows fall to near zero on a couple of clear, cool nights inland. Oct. 25-31: Unsettled on a few days this week with rain, possibly heavy in places. Windy at times with changeable temperatures at times trending to the mild side. Patchy frost occurs in a few inland regions. Nov. 1-7: Seasonable temperatures but with frost on a couple of nights at inland localities. Fair overall aside from rain on two or three days this week, along with windy conditions. Frequent snow falls in Labrador. Nov. 8-14: Look for variable weather and changeable temperatures this week as
fair skies alternate with occasional rain, chance heavy in places. Precipitation changes to snow in northern and some western regions.
October 18 to November 14, 2015 NATIONAL HIGHLIGHTS Mild air is expected to dominate most of Western Canada in this period, due in part to the influence of El Ni単o. Typically this type of weather regime, with milder and relatively dry conditions, continues into the winter months. Indications are that some of the milder and drier weather will spread into Central Canada in November. Until then, however, look for temperatures and precipitation in Ontario and Quebec to average close-to-normal values. Meanwhile, across most of Atlantic Canada anticipate a favourable weather pattern with less frequent storm activity, occasional mild spells and lighter-than-usual precipitation.
Prepared by meteorologist Larry Romaniuk of Weatherite Services. Forecasts should be 80 per cent accurate for your area; expect variations by a day or two due to changeable speed of weather systems. October 2015
h e a lt h
Breathing easier with your inhaler By Marie Berry eing unable to catch your breath is certainly scary, and unhealthy. While you may think of asthma as the most common cause of breathing problems, chronic obstructive pulmonary disease or COPD accounts for most shortness of breath among older people. It is estimated that 1.5 million Canadians have a COPD diagnosis, but an equal number may also have the condition and not realize it. The most common causes of COPD are smoking and air pollution, and it is only after decades of exposure that breathing problems occur. About 15 per cent of smokers will develop the disease, and of people who have COPD, 90 per cent of the cases are attributed to smoking. Combine the requirement of long-term exposure with the aging Canadian population, and you will see that COPD is only going to become more common. COPD is characterized by shortness of breath or dyspnea, coughing, wheezing, sputum or excess mucus production, tiredness, lack of energy, and increases in chest or respiratory infections. Longterm damage to the lungs makes breathing difficult, although you may attribute your deteriorating lung function just to getting older. Because of this, by the time the symptoms are severe enough for you to go to the doctor, lung damage may already have occurred. Two types of drugs are commonly used to treat COPD. These are bronchodilators which open up airways, and anti-inflammatory drugs which reduce airway inflammation. These drugs are often used via inhalers, which makes sense because then the medication is delivered directly to the lungs. Bronchodilators are either anticholinergics or beta-agonists. Anticholinergic medications work through the cholinergic nervous system to relax and open up airways while beta-agonist medications affect beta receptors in bronchial tissue. There are both short-acting formulations such as the anticholinergic ipratropium and the beta-agonist salbutamol meant for immediate relief, and long-acting formulations such as the anticholinergic tiotropium and the beta-agonist salmeterol. It makes sense that you
would use a combination of bronchodilators and a combination of short- and long-acting formulations for maximum effectiveness. Anti-inflammatory drugs are usually inhaled corticosteroids such as fluticasone. Regular use is needed to keep inflammation controlled. However, you do need to rinse your mouth after inhaling to prevent mouth and throat yeast infections. Often combination inhalers are used, that is, an inhaler that contains two different bronchodilators or both an anti-inflammatory drug and a bronchodilator. Inhalers are either metered-dose inhalers, which are pressurized canisters able to deliver a specific dose, or breath-activated inhalers, which depend upon an inhaled breath to deliver the medication. Many types of inhalers are available, both in terms of medication ingredients and delivery systems, but studies show that anywhere from 20 to 75 per cent of people don’t use their inhaler correctly. Obviously, if you count on an inhaler, you need to have good technique and you may need to try several types of inhalers to find one that is effective and that you find easy to use. It goes without saying that you should read all the instructions before using a new inhaler. Many inhalers have websites and supplemental information that will help. Keep practising your technique, even in front of a mirror, and don’t assume that because you have used your inhaler for a long time, your technique is good! Count out all time periods, because what you may think is a minute may not be a minute. And, if you are having problems, consider using a spacer device, or changing from a metereddose inhaler to a breath-activated one. To keep airways open, remembering to use your inhaler is key. If you find yourself forgetting, maybe a change to an inhaler with longer-acting ingredients would mean a once or twice daily dosing, although you probably will still need a “rescue” inhaler like salbutamol. And, don’t forget to carry it with you, because you don’t want to be caught short of breath! Marie Berry is a lawyer/pharmacist interested in health and education.
None of us are getting any younger, and among older people osteoarthritis is the most common type of arthritis. When the protective cartilage in a joint wears away, stiffness, pain, and even mobility problems occur. Next month, we’ll look at some new approaches to coping with osteoarthritis.
October 2015
country-guide.ca 57
acres
‘It’s my crop too’
By Leeann Minogue
Elaine wonders, why are they all headed toward my SUV? e’re 65 per cent done harvest tonight,” Jeff said as he came in the door at 10 o’clock, a trail of durum kernels falling out of the leg of his blue jeans and onto the porch floor. Elaine’s eyes widened. Sixty-five? She was feeling 100 per cent done these days. “That’s great,” she said. Jeff had been working flat out for the past week, leaving the house before seven and not getting in until well after dark. “I’d better get in the shower,” Jeff said. “Before I get more dust all over the house.” The next morning Jeff called from the field. “Do you mind running to the bus depot to pick up a parcel?” “Do you need it this morning?” “Yeah, if you can. It’s some important parts,” Jeff said. “For the combine.” Elaine didn’t really mind. Nobody else had time to make the trip. But she wasn’t sure Jeff understood exactly how long it took to load up an almost two-yearold and a four-year-old for the 30-mile trip to town. “I feel like a single parent with a job as a courier,” Elaine told her mother on the phone before she left. “Jeff barely sees the kids during harvest. And he didn’t even mention my birthday this morning. All of the Hansons forgot!” “It’s a busy time,” her mother said. “You knew you were marrying a farmer when he wore a John Deere cap to your wedding rehearsal. What did you think it would be like?” Elaine didn’t answer. Of course she’d known it would be like this, but knowing something wasn’t exactly the same as living it every day. “You don’t have it that bad,” her mother said. “A pioneer farm woman would have killed for the chance to sit in an air-conditioned car for half an hour on her way to pick up fresh fruit and a current newspaper on her birthday.” Elaine gave up trying to wring any sympathy out of her mother and packed up the kids to head to the bus depot. Connor and Jenny were getting used to the trip. 58 country-guide.ca
It was their fourth ride to town in three days. Elaine had rushed in for emergency parts for the combine, the swather and one of the grain trucks. While she was there, she’d dropped off the farm’s year-end paperwork with their accountant, signed documents at the bank, picked up cheques at the grain terminal, mailed bill payments, dropped off grain samples and bought a list-full of groceries for her mother-in-law Donna, who was spending most of her time running the combine. At each stop Elaine had to unbuckle both kids from their car seats, stop them from running out into the street and haul them in and out of offices and stores. This morning, after she picked up the package at the bus depot, Elaine took the kids to the fuel dealer’s office to pay their monthly bill. “How’s Jeff’s crop coming off?” Ray asked her as he ran her credit card through the machine. “It’s my crop too,” Elaine muttered to herself afterwards as she buckled Jenny back into her car seat. “Just because I’m not out in the field doesn’t mean I’m not part of the business.” “Me too!” Conner yelled. “An’ me,” Jenny chimed in. Back at home, Elaine was simultaneously unpacking the groceries, trying to keep the kids from fighting, and packing lunches for Jeff, her in-laws and Jeff’s grandfather when her laptop buzzed. It was a Skype call from her friend Heather, a friend from Elaine’s university days. Heather was Skyping from an airport. “Just called to say happy birthday!” Heather told Elaine. “I’ve been waiting here all by myself with nothing to do for three hours. It’s been hell.” Even on her small laptop screen, Elaine could see that Heather was dressed in business clothes with her hair swept up on top of her head and fingernails that looked freshly manicured. The very idea of three hours with nothing to do and perfectly clean fingernails sounded more like heaven than hell to Elaine at this point. “What’s going on behind you?” Heather asked, and Elaine looked at the view of the room behind her, as it displayed in the tiny square at the bottom october 2015
of her screen. She saw a counter stacked with half-unpacked grocery bags, buns, packages of sliced ham, a knife in a mayonnaise jar, sandwich containers and a pile of apples. At floor level, four lunch coolers were lined up. Jenny had unrolled a whole roll of tinfoil and was stuffing it into the coolers, to hear the crinkly sound it made. Suddenly a Nerf bullet flew through the scene at waist height. Connor was aiming at a target on the fridge. “Just another day in paradise,” Elaine said, trying to make it sound heartfelt instead of sarcastic. “What are you doing?” Heather said. “Are you running a café?” “Just making lunch,” Elaine said. “For the entire province?” “Jeff. His family. They’re out in the field.” “They left you alone on your birthday?” “Somebody’s got to look after the kids and bring all the parts home from town,” Elaine said. “Somebody who got 87 per cent in third-year calculus?” Heather asked, raising one eyebrow. “Very funny,” Elaine said. Then she turned away from her laptop. “Connor, stop shooting Nerf darts at your sister.” “You know, there’s a job in our Regina office. You’d be perfect for it,” Heather said. “Are you kidding me? I already have three jobs!” Then Elaine’s cellphone rang. Jeff. She said goodbye to Heather and took Jeff’s call. “Did you pick up that parcel from the bus depot?” “Yes, of course I did,” she said, putting the just-finished sandwiches into the coolers. “Can you bring it out with lunch?” “Yes,” Elaine said, trying not to sound as irritated as she was getting. Some birthday. Elaine packed the kids, the lunch coolers and the package into the SUV, then drove seven miles to the canola field. When she parked in the approach nearest the two combines, her mother-in-law and Jeff’s grandpa Ed each slowed their machines to a stop. Jeff and his father drove over in the grain trucks. Jeff helped the kids out of their car seats, while the rest of the family made their way through the stubble to Elaine’s SUV. Donna was carrying a plastic container she’d brought down out of the cab. “Did you remember a lighter?” Donna asked her husband Dale. Dale pulled one out of his pocket and lit candles on a cake in Donna’s container. Elaine gaped, shocked, while the family stood around her singing “Happy Birthday.” “I thought you forgot!” she said when they finished. “We wouldn’t forget your birthday,” Donna said. “Especially after you bought the icing sugar for me!” “We know how much you do around here,” her father-in-law said. “We just want you to know how much we appreciate it.” “We had a secret, Mommy!” Connor said. “You sure did,” Elaine said, trying not to cry. “Did you bring that parcel from town?” Jeff asked. “Yes,” Elaine said. “Well, open it up. It’s your birthday present.” Leeann Minogue is the editor of Grainews, a playwright and part of a family grain farm in southeastern Saskatchewan. october 2015
The man seated down from me at the long breakfast table looks familiar. Is he a local or does he “come from away?” A family reunion gathers brothers, sisters, cousins, even distant relatives like me. We spend four days visiting, eating, storytelling, and eating again. Who is this fellow? Is he a family member I have long forgotten? Breakfast finished, he heads my way. “Rod Andrews — I would recognize you anywhere!” I wonder if that is true. “Give me a name,” I ask, slightly embarrassed. Roy was a classmate in high school. He returned to Canada after a career in research at a university in the United States. He was invited to the reunion. Not being related, he was reluctant to come. Yesterday, he drove by the meeting place and did not come in. This morning he was welcomed. Because he showed up, he belonged. The older generation (apparently I am now a member) grew up in the small town of Delburne, Alta. We have common associations and memories. We remember each others’ parents with fondness. The younger generation, scattered in all directions, make the trek to the reunion every three years. They hear about grandparents they never met. At an informal church service we sing: “God bless the stories we bring collected from the past, And tales of how our lives now flow, and values that will last.” I reflected on belonging. From the time humans began walking on the face of the Earth, people have been concerned about belonging. Cavemen drew pictures of communal life on their walls. Extended families lived together to take care of each other. Families developed into clans, which developed into ethnic groups who settled land in their corner of the Earth. All this gave the individual a place to belong. The yearning to belong persisted down through the ages. In recent years we seem more focused on individual freedoms and the right to construct our own lives. We tell young people to pick a college, pick a job, pick friends, pick a place to live, and pick values. We go through life as if it were a cafeteria line where all these things are à-la-carte options. You are free to pick and choose as you put together a life. If you don’t like the life you have now, you can just get back in line and choose again. It is fascinating to me that we use much of this freedom to find new places to belong. A century ago nobody spoke about community. They just experienced it. Today most of us are actively trying to create a community, friends, and a place to belong — even if it is a virtual place. Why else would Facebook have more than 500 million subscribers? Why else would television keep making new shows about friends, offices, and families? We may be more individualized than ever before, but we still yearn to belong to others. That is because, whether we realize it or not, we belong to God. The yearning for God is wired into our souls. To fulfil that yearning we need to be with other people. Family, friends and neighbours give us a glimpse of the God in whose image we are made. That is a benefit of worship, a reason why people go to church. By the end of the week you are ready to hear a better story. You are ready to hear about the glorious work of God in your life and in the world in which we live. Suggested Scripture: Jeremiah 31, Galatians 6:1-10 Rod Andrews is a retired Anglican bishop. He lives in Saskatoon. country-guide.ca 59
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