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P.5 Wheat marketing negotiation skills
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FarmFORUM volume 26 | issue 3 | Summer 2012
contents >> PRINT TECHNOLOGY
BUSINESS
PRODUCTION
FARM LIFE
FarmFORUM www.farmforum.ca Publisher Bayer CropScience Editor Sherry Butt Associate Editor Dave Wreford
16
Expand your precision tool box The key to a more precise future
COVER STORY
12
20
22
Get ready for open grain markets
Protect your investment
Innovation for the next generation
Learn how to market your wheat
Build to code
Manitoba region OYF winners share their story
4 Editor’s note: embracing change can make a positive impact on your farm 5 Wheat marketing now needs negotiation skills: get the right deal at the right time 6 Global opportunities await Canadian canola growers: look to China and India 10 Get serious about kids and farm safety: awareness of dangers is key to keeping kids safe
look for crop talk starting on page 24
contents >> WEB
CropTalk
FarmFORUM.ca
Contributors Clare Stanfield, Jeff Melchior, Gerald Pilger, Dianne Finstad, Jennifer Barber, Joy Gregory, Lindsye Dunbar and Genesis Studio. Graphic Design Aaron Mumby Design Farm Forum is published seasonally by Bayer CropScience. Contact Farm Forum at: Bayer CropScience Suite 200 160 Quarry Park Blvd SE Calgary, AB, T2C 3G3 T. 1 888-283-6847 F. 1 888-570-9378 E. farmforum@bayercropscience.com www.bayercropscience.ca Contents of this publication are copyrighted and may be reproduced only with written permission of the publisher, Bayer CropScience. The views expressed are not necessarily those of the publisher. Publications Mail Agreement Number 40743517 Registered in Canada Copyright 2012 Website www.farmforum.ca Return undeliverable copies to: Bayer CropScience Suite 200 160 Quarry Park Blvd SE Calgary, AB, T2C 3G3
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Take care when drawing conclusions Bayer comments on honey-bee study
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On the cover Kevin Bender is one wheat producer who is looking forward to marketing his wheat crop on his own. He says that although it will involve more responsibility and risk, the new opportunities will make it all worthwhile.
www.farmforum.ca/honeybeestudy Farm Forum.ca | 3
s h o r t ta k e s
More at farmforum.ca Each month we send you an email from Farm Forum that contains three short articles you may find interesting, a couple of blog headlines and a link to our Twitter page. Our goal is to provide you with information that is quick and easy to read. You can sort through the headlines quickly, read what interests you and move on. We put a lot of different items on the page so you can see what else might interest you after reading an article or blog. There’s also depth if you want it. If technology is of interest just click on the “Technology” tab and you’ll find a wide variety of articles to choose from, all on one page. To stay connected please follow us on twitter: @farmforum. FF
4 | Farm Forum | Summer 2012
Editor’s note To be a successful farmer is to be adaptable. And for wheat and malting barley growers faced with the new challenge of marketing their own crops, change comes with some homework. You’ll need to research sales options and brush up on marketing and negotiation skills, just as you already do for canola and other crops. Look for ideas on how to adapt to open grain markets in our cover story and Consultant’s Corner feature. If you’re a canola producer, take note of some changes on the way in the high stability oil market. The soybean industry is about to launch a new oil that behaves like high stability canola oil, offering some competition and more choice for consumers. Read on page 6 about this and some interesting opportunities in the global market for Canadian canola growers. Between 1990 and 2008, 248 children, aged 15 or younger, were accidentally killed on Canadian farms. That’s a horrifying statistic, but it’s one farm safety advocates are determined to reduce by trying to change farmers’ attitudes toward farm safety. In our story, Get serious about kids and farm safety, you’ll meet three farm families who share their stories about the devastating consequences of not taking farm safety seriously. Getting the job done more easily and efficiently is always of interest to farmers. In our story on page 16, we’ll introduce you to some new gadgets for your precision ag toolbox. We’ll also talk about the precision technologies farmers use most and what the new world of precision agriculture will look like. If you’re doing any on-farm construction projects this summer, think building codes and standards. Whether legislated or not, building to code is the best way to protect your investment. Turn to page 20 to find out how. Lastly, adaptability helped this issue’s Outstanding Young Farmers win the Manitoba region award for 2012. Read their story on page 22. FF
business
PHOTO Genesis Studio
Wheat marketing now needs negotiation skills
It’s late July. Do you know where you’re wheat is going? Clearly, the biggest event on the grain selling scene this fall will be the open wheat market. Growers have had a few months now to explore the options and even dip their toes in the open market water, which has appeared a bit murky at times. So what should you be thinking about as you get on the combine this year? “Think about what you need,” says Brenda Tjaden Lepp, co-founder and chief analyst with FarmLink Marketing Solutions in Winnipeg. At the same time, she says, “Keep your ears open, listen, and be willing to bend a bit.” That’s because Canadian wheat markets are still sorting themselves out for both buyers and sellers. Discounts and premiums, basis, transportation logistics — all the peripheral costs and risks associated with wheat sales — are being assessed on an individual basis. “All grain buyers are totally on their own to make those decisions,” says Tjaden Lepp. “And for the first time, every farmer has the option to negotiate.” Independent grain companies, as well as the CWB, are still working out the de-
Consultant’s Corner With Brenda Tjaden Lepp
By Clare Stanfield
tails of their offers. As of mid-June, for is not transparent yet, but that’s more just example, the CWB’s handling contracts a pain to deal with rather than a strucwere still in flux. “If you want to sell tural problem. “It means that before you make a sale, through the wheat board, you’re committing to deliver to a very small number you have to call a lot of buyers and have of elevators relative to the total number more than a 15-second conversation with of options out there,” says Tjaden Lepp. them,” she says. “You may want your grade discount locked She adds that grain in, and buyers may handling companies say they can’t do that are still in discussions For the first time in because it exposes with the CWB and, a long time, wheat them to too much come harvest, there risk.” Negotiation is may be more options. marketing can be the definitely the name of But for now, proximright deal for the right the game now. ity to an elevator that The good news, has a handling agreeguy at the right time she says, is that grain ment is something companies are very you have to consider when deciding whether to do business relationship-focused and are therefore willing to hear about what individual with the new CWB. Independent grain companies, on the farmers need. But, as Tjaden Lepp says, other hand, are still figuring out what farmers also need to understand what the they can offer growers while managing companies need in return. “It’s not going their own risk. “Discounts and futures to be all the farmers’ way, or all the buyare becoming more clear,” says Tjaden ers’ way,” she says. “This is a now oneLepp. But they’re not crystal-like yet. on-one business negotiation, and for the “This is a really big change and it’s going first time in a long time, wheat marketing to take a lot of time for a new system to can be the right deal for the right guy at develop,” she says. “Basically, the market the right time.” FF Farm Forum.ca | 5
business
Global opportunities await Canadian canola growers
Canola is a huge Canadian success story. Developed by Canadian plant breeders four decades ago, canola has become one of the country’s most popular field crops, with production in 2011-2012 reaching a record 14 million tonnes, much of which was sold into export markets. What may surprise some is that — from a global perspective — canola is still something of a niche crop, produced by relatively few growers for specialized uses. Although it has experienced enormous popularity as an oilseed in North America in recent years, it has yet to make significant breakthroughs into some key overseas markets. If and when it does, demand could increase dramatically. “Even though canola is such a major crop for us, on the world stage it’s more like a specialty crop,” says Chris Beckman, an oilseeds analyst with Agriculture and Agri-Food Canada in Winnipeg. “Many other countries grow their own varieties of canola-quality rapeseed, while others — such as India — prefer rapeseed/mustard as an oilseed. “However, as third world countries become wealthier‑and at 6 | Farm Forum | Summer 2012
By Jeff MelchioR
the same time more concerned with health — the health benefits of canola could open up new opportunities going forward,” he says. As canola grows in popularity worldwide, Canada could be in a good position to serve that expanding market. “Over the past 40 years, Canadian canola has benefitted greatly from both public and private sector investment as well as producer innovation,” says Cory McArthur, vice-president of marketing development with the Canola Council of Canada. “In the process, the Canadian canola industry has laid foundations for growth that many other countries lack.” Where Canada fits Canola was developed in Canada in the early 1970s to reduce nutritionally undesirable components of rapeseed: erucic acid and glucosinolates. To meet the internationally recognized definition of canola, varieties must contain only minimal levels of both erucic acid glucosinolates. Canada is by far the world’s largest producer of canola. The
Canola Production by Country (000 tonnes)
2009-10 2010-11 2011-12
EU-27
21,717 20,593 19,177
Russia
687 670 1,019
Ukraine
1,873 1,490 1,320
Canada
12,889 13,100 14,500
USA
669
China
13,300 12,200 11,600
India
6,000 7,100 6,000
1,114 699
Australia 1,897 2,380 3,100 Other
2,289 2,098 2,208
Total
61,332 60,744 59,622
Source: Oil World
Canola/Rapeseed Crush by Country (000 tonnes)
What may surprise some is that — from a global perspective — canola is still something of a niche crop, produced by relatively few growers for specialized uses
2009-10 2010-11 2011-12
EU-27
23,470 22269 21,272
Russia
627 620 770
Canada
5,065 6403 6,850
USA
1,161 1,271 1,245
Mexico
1,300 1,500 1,560
Bangladesh 439
397
412
China
14,810 12,820 12,900
India
5,372 6,480 6,250
Japan
2,277 2,343 2,300
Pakistan
1,071 1,063 1,127
Turkey
322 348 170
U Arab Emirates 670
770
800
Australia 706 758 506 Other Countries 1,704 Total
1,605
1,650
58,992 58,646 58,113
PHOTO Genesis Studio
Source: Oil World
U.S., at an average of 650,000 tonnes a year, produces a relatively small amount but is the largest export market for Canadian canola oil and seed. China, Mexico and Japan are also major importers of Canadian canola. Although Canada is one of only a few countries to grow canola, others produce canola-quality rapeseed that approximates canola standards, and much of this product is consumed domestically. “Our only real competition among the canola-quality rapeseed producers is Australia and Eastern Europe,” says McArthur. “Their oil product looks like and behaves very similarly to Canadian canola oil but they don’t export. They’re net importers. We really don’t have to compete with them other than when we’re shipping products into Europe.” China key market China has proven to be a key but erratic market for Canadian canola. A ban on canola seed (since 2009) due to
Canola/Rapeseed Oil Consumption by Country (000 tonnes)
EU-27
2009-10 2010-11 2011-12 10,018 9569 9,280
Other Europe 232 Russia
311
342
165 142 138
Canada 465 470 610 USA
1,276 1,629 1,740
Mexico 540 638 648 China PR 5,886 6,093 5,706 India
2,061 2,458 2,410
Japan
994
1,046 1,033
Pakistan 397 398 425 Australia 196 206 203 Other Countries 1,022 Total
1,163
1,125
23,252 24,123 23,660
Source: Oil World Farm Forum.ca | 7
concerns over blackleg has caused overall canola exports to China to fluctuate wildly over the past several years. However, Beckman expects Chinese demand to increase as its standard of living increases, and consumers begin to insist on healthier oils and domestic production fails to meet that demand. China currently produces what it claims to be canola-quality rapeseed, although the industry consensus is that most of this product is actually conventional rapeseed. “We believe that (China) has modified the internationally-accepted definition of canola in order to label its rapeseed canola-quality,” says McArthur. “It contains high erucic acid and tends to smoke when you cook with it.”
World Oilseed Production Source: Oil World million tonnes
2009-10 2010-11 2011-12
Soybean
260.0 265.6 242.9
Cottonseed
39.4 42.9 47.2
Peanut
24.7 25.0 24.9
Sunflower seed 33.2 33.6 38.9 Canola/Rapeseed 61.3 60.7 59.6 Sesame seed 3.8 3.7 3.8 Palm kernel 11.7 12.7 13.2 Copra
5.8 4.8 5.2
Linseed
2.2 1.9 1.9
Castor seed 1.3 1.6 1.9 Total
India a hard sell India has proven to be a tough market for Canadian canola oil to break into, says McArthur. “India grows a mixture of higherucic acid mustard seed and rapeseed similar to what’s grown in China,” he says. “A large segment of the Indian population prefers the pungency of mustard oil. However, we are starting to see a small niche market of consumers who want the neutral flavour and health benefits that go along with a low-erucic acid product such as canola oil.”
443.5 452.6 439.6
Europe focuses on biodiesel Countries in the European Union have largely removed themselves as competitors in the edible oil market as they focus their oilseed production on biodiesel, says Beckman. “They’ve been importing palm oil to backfill their shortage of edible oil, although we estimate that 400,000 to 800,000 tonnes of canola seed gets sold into EU countries as oil after processing in the United Arab Emirates. It’s kind of an indirect market for Canadian canola.” Generally, however, the EU market remains closed to Canadian canola due to ongoing resistance to genetically modified organisms (GMOs) in food products. Beckman does not see this attitude eroding any time soon. FF
For the past decade, highstability canola oil has been at the cutting edge of the food manufacturing industry thanks to its processing attributes and perceived health benefits. However, it may soon face competition from new soybean oils capable of going toe-to-toe against high-stability canola oil. The first of these soybean oils are set to enter the marketplace within the next few years, and they may prove to be canola oil’s biggest competitor going forward, says Cory McArthur, vice-president of market development with the Canola Council of Canada. High-stability canola oil is high in oleic acid, says McArthur, which improves its shelf life and suitability for high-heat
8 | Farm Forum | Summer 2012
applications such as deep-frying. By comparison, soybeans are relatively low in oleic acid and less suitable for such applications. Although attempts have been made in the past to modify the fatty acid profile of soybean oil, McArthur says the industry has not had much success until recently. “The economics generally favour canola as an edible oil source because of its 40 per cent oil content compared to 20 per cent for soybean,” says McArthur. “However, it looks as though the soybean industry may have a better product this time. It could be similar in behaviour to high-stability canola oil.” This new soybean oil still has a number of challenges
ahead of it. “The soybean industry is not as well set up as the canola industry to handle identity preservation throughout the value chain,” says McArthur. “Its success will also likely be a matter of how many producers they can get to grow it and what consumers think of the taste.” Although the canola industry is watching these developments carefully, McArthur does not think a successful high-stability soybean oil would necessarily present a threat to canola. “Our feeling is that it’s not likely to be so big that it crowds the space in the highstability market. We believe there’s considerable opportunity in the commercial frying sector for both products.” FF
Photo Courtesy bayer cropscience
New soybean oil poses competition for canola
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O-67-07/12-BCS12185-E
fa r m l i f e
Get serious about kids and farm safety The first funeral of a child Pastor Russell E. Saltzman conducted was for Mark, an 11-year-old killed in a farm accident in 1980. Mark was thrown from a tractor driven by his grandfather and suffocated under the load of corn they were towing. The story gets worse: Mark’s father had been killed in a farm accident just two years earlier. Since then, Saltzman has comforted many families who have had children injured or killed in farm accidents. When asked how families cope, he says simply, “Not well!” Between 1990 and 2008, 248 children aged 15 or younger were accidentally killed on Canadian farms. The death of a child impacts everyone: parents, siblings, grandparents, friends, even communities. 10 | Farm Forum | Summer 2012
Here are three stories from families who have lived through the tragedy of either losing their child in a farm accident or helping their child cope with an injury due to a farm accident. All hope that by sharing their stories, more attention will be paid to farm safety, especially around children.
Macala “I just lost my baby!” were the only words Sharon said to her father, Tom, when he answered the phone on October 13, 2004. He passed the phone to his wife, and Sharon was able to tell her mother that their seven-year-old granddaughter, Macala, had just been killed in a central Alberta farm accident. Sharon was separated from her hus-
band, and their three children were with him on that October day as he went out to stack bales. Heading out to the field, he was driving one tractor and Macala’s nine-year-old brother was driving a second loader, with Macala riding on the step. Her older sister was following along on an ATV. They never made it to the field. The loader hit a bump; Macala was thrown off the step and crushed by a wheel. “We were devastated,” Tom says. “We drove to the hospital where she had been taken, but she had already been pronounced dead. I couldn’t even bring myself to see her body. I didn’t want to remember her the way she would have looked at the hospital.” The accident really tore the family apart.
PHOTO ©istockphoto.COM/Kali Nine LLC
By Gerald Pilger
Between 1990 and 2008, 248 children, aged 15 or younger, were accidentally killed on Canadian farms.
“As hard as it has been for us,” adds Tom. “I can’t imagine what it was like for Macala’s brother, driving the loader, or her sister who saw the whole thing from the quad. I have never talked with either of them about that day for fear of hurting them. “When an older person passes away, you can accept their death. But when it is a young person, and the death is unexpected, it is really hard. It was only the support of our minister, religious faith, and our belief that someday we will see Macala again that allowed us to accept her death.”
Curtis On September 13, 1990, Curtis, an Alberta farm boy, lost a leg in a harvesting accident. Unbeknownst to his father, who was operating the combine, and even though he knew full well the dangers of flowing grain and augers, Curtis climbed into the combine hopper full of canola just as his father engaged the unloading auger. He became entangled almost immediately.
Call it luck, premonition, or a mira- the entire emergency surgical staff could cle, for some reason Curtis’s dad shut the attend to Trevor right away. combine down as it was unloading and His mother, a nurse, had the knowlfound his son nearly buried in the canola edge to work with the doctors and push with his leg trapped in the auger. With no for surgical intervention, which likely shovel at hand, his dad used the engine saved his life and allowed him to reair filter housing to scoop canola away cover beyond even the most optimistic so Curtis could breathe, and then be ex- expectations. tracted. Curtis’s first words to his father, Today, Trevor is the national youth while the two were in the hopper, still safety spokesman for Farm Safety 4 Just haunt him: “It wasn’t your fault dad.” Kids, a non-profit organization based in Curtis recovered Iowa, which serves from his injuries and the United States has far exceeded the and Canada. The All the families hope limitations doctors organization prothat by sharing their said he would have vides resources and in facing life with an training to individustories, more attention artificial limb. But als and communiwill be paid to farm unfortunately, his ties to conduct farm safety, especially dad has battled desafety awareness and pression ever since education programs. around children the accident. Staff at Trevor has travelled the hospital tried to across the eastern get both Curtis and his father to accept U.S. telling of his near death experience counselling but they refused. His dad at- (part of his presentation is on YouTube tributes that decision to a macho mental- — a must-see for anyone living, working, ity. “Men don’t think they need to talk or visiting a farm). about their problems and that they can “While farm accidents often divide handle everything themselves,” he says. families, my accident brought our fam“This feeling is even more prevalent with ily closer together,” says Trevor. “Sure, farmers who are used to doing every- it put grey hairs on both mom and dad, thing on their own.” and mom worries more about everything He now deeply regrets his decision not I do — probably more so now at 21 than to seek help in coping with the guilt and when I was 14. But all of us know farmanger that he has tried to deal with on ing is a dangerous business and accidents his own. He has two messages to share: do happen. Farmers are always in a rush. “After an accident, get counselling. Talk Farmers need to slow down and take time to someone. More importantly, prevent to think. That is what I tell the groups I accidents by making sure no one is any- speak to and my parents support me fully where near operating equipment. Acci- in getting this message out,” says Trevor. dent prevention comes down to aware“Many farmers who have had an acness of where everyone is and taking the cident try to hide the story,” he says. time to do the job safely.” “They seem to think admitting the accident makes them less of a farmer. I, too, Trevor was ashamed in the beginning, but talkThe survival of Trevor Hoff is truly noth- ing about the accident has helped me get ing less than a miracle. On July 21, 2005, through it. the then 14-year-old Maryland farm boy “There is no doubt in my mind that I had his pelvis and head crushed when the should be dead,” adds Trevor. “I believe tractor he was using rolled over him as he I was kept in this world for something, was getting off to open a gate. and that is farm safety. And if by talkA series of incredible coincidences ing about farm safety and my experience saved his life. A seed salesman, who hap- I save one life; if I save one kid from going pened to be a fully trained and quali- through what I went through, it will be fied paramedic, arrived at the farm just worth it.” FF as the accident happened. Then a medical trauma helicopter was just two miles www.farmforum.ca/farmsafety4justkids Farm Safety 4 Just Kids provides resources from the farm at the time of the accident. and training to help develop farm safety And, remarkably, with no other traumas awareness and education programs. at Baltimore’s Johns Hopkins Hospital, Farm Forum.cA | 11
Get ready for open grain markets
Cover Story • By Dianne Finstad
W
ith freedom comes responsibility. That’s what western Canadian wheat growers are discovering as they enter a new marketing era and begin selling the globe’s second biggest grain crop from their home offices.
While some farmers have eagerly campaigned for such a day, others fear its coming. Regardless, on August 1, you’ll need to do more homework to successfully market wheat. While Canada has long been known around the world for producing and exporting high-quality wheat, farmers marketing wheat on their own will find themselves facing lots of competition. According to USDA figures, of the 694 million metric tons of wheat produced in the world in 2011, just under 144 million went to the export trade. Of that, the U.S. had nearly 19 per cent of the business sewed up. Canada’s share was under 12 per cent. Canada also faces stiff competition from other wheat sellers including the
European Union (EU), Argentina, Australia and some of the nations of the former Soviet Union. As well, world stocks of wheat have been rebuilding from the lows of the early 2000s. But there is a bright side to this “brave new world” of wheat marketing. Canadian farmers now have more options and opportunities to sell their wheat on their terms — through major grain companies, domestic wheat processors, or a revamped Canadian Wheat Board. Also, they can protect prices by using futures markets and other hedging strategies. Kevin Bender is one farmer who likes the fact there’s lots on the table for him to choose from when marketing the wheat he grows near Sylvan Lake, AB. “I want to be able to ship right off the
The Competitive World of Wheat
combine,” says Bender, who’s been shopping around for some specific delivery month contracts. “Before, there were no guarantees on delivery. It would depend on what the wheat board called for and when. Now it’s more like canola. “I’m also hearing of a lot more demand for the mid- to low-quality wheats,” he says. “I guess they’re cheaper and more attractive to some companies. One company even offered me different proteins on CPS wheat, as low as 9 per cent, and we’ve never seen that before. Typically, that’s what we get more of here in central Alberta. “It’s going to be more of a demand driven market, for what the customer wants,” adds Bender, who is also currently serving as president of the Western Canadian Wheat Growers Association. He believes he’s much more in the driver’s seat than in the past. “We had only one buyer, and now there are multiple choices,” he says.
Source: USDA
Commodity Attribute Country 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012* 2012/2013* Wheat Production Canada 20,054 28,611 26,848 23,167 25,260 27,000 (1000 MT) United States 55,821 68,016 60,366 60,062 54,413 60,802 World 611,852 682,754 686,189 651,140 694,167 672,064 Exports Canada (1000 MT) United States World
16,116 18,876 19,042 16,575 17,300 18,500 34,363 27,635 23,930 35,076 28,712 31,298 117,303 144,527 137,222 132,433 148,756 135,423
Ending Stocks Canada (1000 MT) United States World
4,406 6,547 7,829 7,176 5,136 6,186 8,323 17,867 26,552 23,466 19,815 18,892 128,164 167,808 200,552 197,234 195,560 185,755 *estimated
12 | Farm Forum | Summer 2012
<< “There will be more responsibility, and more volatility,” acknowledges Kevin Bender. “But I like that. It means more opportunity. That’s right up my alley.”
PHOTO Genesis Studio
“Some farmers may even want to deal directly with foreign buyers, for container shipments into niche markets. It will be a little bit more work, but before we got what they gave us. Now I can shop around with what I’ve got, and see what buyers are willing to give.” When it comes to protein discounts, or premiums, he’s willing to put a little trust in those firms he chooses to do business with. “If a company takes advantage of a farmer, it’s not likely going to do business with that farmer in the future, so they’ll want to treat grain growers fairly.” Transportation remains a key component of any buy-sell arrangements, but again, Bender sees choice. “There will be the option of selling at the bin, just like feed grains. We can have cash flow and bin storage management.” Farming has always been full of risks and unknowns. The new world of wheat marketing just adds to that picture. But again, it’s a matter of perspective. “There will be more responsibility, and more volatility,” acknowledges Kevin Bender. “But I like that. It means more opportunity. That’s right up my alley.” Futures still in flux RBC commodity futures advisor Keith Ferley points out that the new marketing environment moves wheat, as a farm commodity, closer to canola in terms of providing marketing flexibility for growers. “It means farmers won’t have to be as reliant on canola for their cash flow,” says Ferley. But he admits the hedging picture for wheat is still a little fuzzy.
ICE Futures in Winnipeg has introduced both a milling and durum wheat futures contract, but so far liquidity has been slow in coming as, it seems, no one wants to be the first to jump in. The Minneapolis exchange offers a dark northern spring wheat contract, and there’s a hard red winter wheat one in Kansas plus a
“It’s a learning curve for processors,” he says. “Canola crushers have experience with contracts, but for the small wheat miller who’s only been a CWB customer, he has never had to do any hedging. It was only a ‘take it or leave it’ price, so they went hand to mouth. Just like Canadian farmers, they’re having to learn about hedging wheat.” Grain companies began offering wheat contracts as soon as the legislation was passed in December. A wide variety of choices are available, but two of the key points appear to be protein and quality requirements. “Wheat is so different from canola, with protein variance and disease issues such as fusarium and vomitoxin, so farmers need to be wary of discounts included in the contracts,” says Ferley. “You need to do your homework, because you’re at risk now, not the Canadian Wheat Board.” Alberta Agriculture and Rural Development provided a number of winter education seminars for growers on marketing wheat. Market analyst David Wong also advises farmers to read and understand any contract before signing. “It’s a live and learn process as we move forward,” he says. “Not everyone has all the answers yet. But pricing and
I’m also hearing of a lot more demand for the mid- to low- quality wheats,” he says. “I guess they’re cheaper and more attractive to some companies. One company even offered me different proteins on CPS wheat, as low as 9 per cent, and we’ve never seen that before soft red winter wheat contact in Chicago. “For the first time, Minneapolis is now allowing Canadian wheat to be delivered against their futures contracts,” says Ferley. “While some farmers are hedging in the U.S. markets, specific weather problems, such as a flood in North Dakota, could see Canadian growers get squeezed. “It’s a discussion we have with all clients as we look for ways to get to their comfort level,” he says. “It is sparking some creative hedging strategies for wheat.” Wheat futures, though, remain a major price determiner. Buyers feel their way Farmers can now also deal directly with processors, but Ferley says they, too, are moving cautiously into the new wheat world.
delivery on wheat will become more separated, and farmers will need to be more proactive in lining up delivery. “There will be more alternatives to consider, more contracts available and more niche markets to target,” says Wong. “Farmers will need to collect information from all sources to determine local farm gate prices at their bins.” For growers not ready or willing to commit that kind of time and research, the Canadian Wheat Board is still in the game and offering the option to continue to sell into a pool. That will provide more grade target choices, as well as options on delivery points, grain handling companies, guaranteed payments and covering off some of the risk issues. The board is also offering a variety of cash contracts. FF Farm Forum.cA | 13
Cover Story • By Dianne Finstad
A new variety AC Stettler pictured here is destined for different markets.
Of the 694 million metric tons of wheat produced in the world in 2011, just under 144 million went to the export trade
World and U.S. wheat production, exports and ending stocks Mkt year World production U.S. production U.S. share
World exports
U.S. exports
U.S. share
World ending stocks
U.S. ending stocks
U.S. share
1/
(million bushels)
(million bushels)
(percent)
(million bushels)
(million bushels)
(percent)
(million bushels)
(million bushels)
(percent)
2002 20,929.107 1,605.878 7.67 3,882.818 850.211 21.90 6,218.138
491.416 7.90
2003 20,402.717 2,344.415 11.49 3,991.726 1,158.324 29.02 4,981.345
546.439 10.97
2004 23,026.291 2,156.790 9.37 4,113.495 1,065.911 25.91 5,711.038
540.100 9.46
2005 22,737.228 2,103.325 9.25 4,307.575 1,002.781 23.28 5,557.413
571.190 10.28
2006 21,903.367 1,808.416 8.26 4,110.886 908.476 22.10 4,835.436
456.153 9.43
2007 22,481.713 2,051.088 9.12 4,310.147 1,262.612 29.29 4,615.892
305.818 6.63
2008 25,086.915 2,499.164 9.96 5,310.458 1,015.415 19.12 6,147.884
656.505 10.68
2009 25,213.130 2,218.061 8.80 5,042.045 879.278 17.44 7,351.020
975.637 13.27
2010 23,925.300 2,206.916 9.22 4,866.080 1,288.833 26.49 7,229.105
862.246 11.93
2011 25,523.541 1,999.347 7.83 5,391.772 1,025.000 19.01 7,239.577
768.083 10.61
2012* 24,896.179 2,245.266 9.02 5,034.733 1,150.000 22.84 6,912.447
735.349 10.64
1/ Aggregated based on local marketing years. Latest data may be preliminary or projected. Source: USDA, Foreign Agricultural Service, Production, Supply, and Distribution Database and USDA, World Agricultural Outlook Board, World Agricultural Supply and Demand Estimates. Date run: 5/21/2012
World wheat supply and disapperance 1/
(metric tons per hectare)
(million metric tons)
(million metric tons)
(million metric tons)
(million metric tons)
2002 213.788
(million hectares)
2.66
569.597
113.745
604.522
105.673
169.230
2003 207.797
2.67
555.271
99.093
588.931
108.637
135.570
2004 216.104
2.90
626.673
108.695
606.814
111.951
155.429
2005 218.722
2.83
618.806
114.775
621.285
117.233
151.248
2006 212.231
2.81
596.112
110.092
615.761
111.880
131.599
2007 217.140
2.82
611.852
102.282
617.827
117.303
125.624
2008 224.562
3.04
682.754
119.759
641.060
144.527
167.318
2009 225.821
3.04
686.189
119.757
653.445
137.222
200.062
2010 218.344
2.98
651.140
116.328
654.458
132.433
196.744
2011 221.676
3.13
694.637
147.644
694.352
146.740
197.029
2012* 221.246
3.06
677.563
133.695
686.466
137.023
188.126
1/ Aggregated based on local marketing years. Latest data may be preliminary or projected. 2/ Excludes intra-European Union trade. Source: USDA, Foreign Agricultural Service, Production, Supply, and Distribution Database. Date run: 5/21/2012 14 | Farm Forum | Summer 2012
*estimated
PHOTO Genesis Studio
Mkt year Area harvested Yield Production Feed use 2/ Domestic disappearance Exports 2/ Ending stocks
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R-39-07/12-BCS12185-E
Technology
Expand your precision tool box By Jennifer Barber
Solutions for today Dan Owen, agronomy manager with Hudye Soil Services in Norquay, SK, says his customers are investing in precision technology as it becomes easier to use, more reliable and offers proven results. “Growers are realizing the benefits of precision,” says Owen. “For example, autosteer is now so commonplace people 16 | Farm Forum | Summer 2012
almost forget that it’s part of precision agriculture. More of our growers are also using GPS-based technology to map their fields and to take a broad look at their progress.” He says that as growers become more comfortable with field mapping, they invest in variable-rate fertilizer technology because it doesn’t have a large capital outlay and is easy to use. Owen has seen the benefits in Hudye’s own extensive field trials. He adds that variable-rate seeding and spraying are still in their early stages, with many growers needing more evidence before they invest in those technologies. That’s where Steve Larocque comes in. Recognizing that many precision agriculture technologies and techniques are relatively new, and their merit yet to be fully quantified, Larocque tests out various practices and equipment on his small farm in Morrin, AB, putting them through their paces in real life situations for year-over-year analysis. If something works, he recommends the product or practice to his customers
as part of his consultancy business, Beyond Agronomy. Farming to the data “We approach precision agriculture by working toward the accurate placement of inputs first. Then we start to vary inputs across the landscape based on the data we collect,” says Larocque. “Just a few years ago our placement was purely random, and today we are on year three of controlled traffic farming using full RTK (real-time kinematic) GPS access with sub-inch accuracy.” Controlled traffic farming is a relatively recent addition to the precision agriculture toolbox. It establishes traffic lanes, called tramlines, for all farm machinery — from seeder to combine — separating the crop from the equipment to reduce compaction and allow better movement of moisture. RTK refers to the real-time kinematic radio towers that provide a high degree of accuracy by linking into the GPS systems that are becoming increasingly common in today’s field equipment. Larocque’s
PHOTOs (left) courtesy case iH; (right) courtesy john deere
Over the past decade, western Canadian growers have been adopting different aspects of precision farming. The results of a survey of attendees at the 2012 National No-Tillage Conference in St. Louis, Missouri, in January, showed 67 per cent of respondents used field mapping, the highest rate for any precision farming practice. Yield monitors, GPS guidance and variable rate fertilizer had all been adopted by almost half the farmers surveyed. So is this technology providing results? Absolutely, and growers will want to both expand their definition of precision technology, and get ready to build on it for an even more precise future.
consistent tramlines have allowed him to get into the field days before his neighbours, and reduced his fuel costs by 10 per cent. Noting that since most modern equipment is GPS-equipped, he suggests to his customers that they install a yield monitor on their field equipment to measure results. Yield monitors are simple to operate and plug into the GPS software to provide usable data that helps growers make more informed production decisions down the road.
As growers become more comfortable with field mapping, they invest in variable-rate fertilizer technology because it doesn’t have a large capital outlay
What’s next? In 2013, Larocque plans to put into service a custom-built nitrogen side dress tool bar on his sprayer. With the use of his permanent tram lines, RTK guidance and GreenSeeker technology — variablerate application and mapping — he plans to apply variable-rate nitrogen in-season
between the rows using coulters at a depth of two to three inches where roots have immediate access to nitrogen. “If I see value in the GreenSeeker I plan to recommend it to my clients as another method of tracking, measuring and using field data,” he says. “We plan to use it as a tool to begin applying variable
rate-nitrogen, fungicides, plant growth regulators and desiccants. It has a lot of potential for better use of inputs and more precise application.” Then there’s the iPad. Maybe it’s not strictly an agricultural tool, but agronomists at Hudye have started field testing iPads using software that allows them to make real-time notes and mark the locations of, and issues within, a field. Owen cautions that all the technology in the world can’t replace actual “ground truthing.” He says that the best precision approaches, the ones most likely to be adopted by growers as a group, work by mixing old school thinking with modern technology. FF www.farmforum.ca/beyondagronomy
Keep up with Steve Larocque and what’s happening at Beyond Agronomy.
The new world of precision agriculture Precision agriculture has come a long way over the past decade. And according to Professor Raj Khosla, developments over the next 10 years will continue to change the food production business, with agriculture becoming more intensive, higher-yielding and hopefully more sustainable. “In many cases, the technology of the future has already been developed,” says Khosla, professor of precision agriculture at Colorado State University and president of the International Society of Precision Agriculture. “Today we are applying that technology in research and field settings to see how it can best be used to improve agriculture.” Khosla sees automation as one area of potential technological growth because of recent improvements in GPS resolution. “We now have access to two GPS signal bands that filter out errors caused by ions and water vapour in the near and outer atmosphere,” he says. “In the past, mapping was accurate to within 15 metres, while today it is accurate to less than 10 centimetres. With that kind of accuracy the next generation of equipment can become more automated.” Technology that takes advantage of the visual process will also be available to growers in the near future, he adds. This technology is already being tested in high-value crops such as grapes, pistachios and citrus fruits, as it shows a clear, three-dimensional view to make decision-making simple and take errors in judgment out of the equation. Khosla adds that improved sensor technology will help improve input management decisions. “Today what growers see with their sensors is simply differentiation in colour,” he says. “For example, lighter areas in a crop are primarily attributed to nitrogen deficiency and sensor results are used to adjust nitrogen fertilizer application. But new sensor technology will be able to detect other reasons
for lighter areas in a field, such as pests or iron deficiency.” Khosla says that new technology around water management will be significant from both a production and a sustainability perspective. “Precision irrigation systems being tested today can control more than 5,000 zones on a 100-acre field, but the science isn’t yet available to know how best to use that technology,” he says. “Once we know how to use new technology wisely, it will be able to help growers allocate their resources — be that water or other inputs — more appropriately.” FF
Farm Forum.cA | 17
Who says you can’t win them all?
BayerCropScience.ca/InVigor or 1 888-283-6847 or contact your Bayer CropScience representative. *Source: Public Co-op trials. Always read and follow label directions. InVigor® is aregistered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.
We haven’t just been number one this year, the past five years or even the last decade. No, InVigor® hybrids have been number one in yield for 16 years running.* InVigor was founded on the endless pursuit of excellence, creating superior genetics that consistently deliver outstanding early season vigor, high stress tolerance and most importantly, YIELD. Chalk up another win for InVigor.
O-66-07/12-BCS12185-E
production
Protect your investment: build to code By Joy Gregory
that oversees the application of its building code. Davio’s warning, repeated by provincial counterparts in Saskatchewan and Manitoba, hinges on two points: safety and best practices. National standards Canada has a national farm building code that outlines construction practices and safety features that protect people, livestock and equipment from losses caused by events such as fire, heavy snow loads or high winds. The national code is ad-
opted by some provinces, which then add their own rules about its application and enforcement, explains Davio. This is where things get interesting — and confusing. Manitoba and Alberta, for example, require that all family farm homes meet national building code standards, thus establishing baseline standards for structural integrity (basement, roof and wall systems) and fire protection. Saskatchewan, on the other hand, exempts farm homes from code compliance. When it comes to farm buildings, Manitoba’s legislation specifies codified standards for all buildings of 600 square metres (m2) and larger, regardless of where located — this is a legal standard. Saskatchewan and Alberta appear to exempt buildings constructed on farms, but the rules are not as cut-and-dried as they may seem. Here’s what you should know in your province: Manitoba Two years ago, following a run of heavy economic losses from fires involving farm buildings, Manitoba adopted a new Manitoba Farm Building Code. Under the new rules, all buildings over 600 m2 are classified as “light industrial” or “medium industrial,” even when located on a family farm, says David Schafer, fire commissioner. His office is the primary contact for owners, designers and contractors of farm buildings 600 m2 and greater. Under the regulation, fire alarms must be installed in all farm buildings over 600 m2, and attics in those buildings must have fire stops for every 300 m2. Travel distance to an exit must be less than 30 metres. According to Schafer, the rules reflect knowledge about the best practices relative to size and complexity of modern farm buildings and the need to set “minimum construction standards to ensure production efficiency (and) protect against major financial losses and improve workplace safety.” Manitoba is serious about codes, evi-
20 | Farm Forum | Summer 2012
PHOTOs (right) ©veer.com/Alloy Photography; (right) ©istockphoto.COM/Teekid
It’s relatively easy to tell how Manitoba’s building code regulations apply to farmers. But according to building code specialists in Alberta and Saskatchewan, farmers need to do some serious research before starting any on-farm construction projects. While the Alberta Building Code does not apply to family farm operations, that doesn’t mean you should think you’re on your own in terms of deciding what construction standards should be met, says Michelle Davio of Alberta Municipal Affairs, the provincial government branch
denced by the recently-established farm building code subcommittee, with representation from stakeholders including the ag and construction sectors, which is reviewing Manitoba’s farm building code and will make recommendations on future upgrades. Saskatchewan Saskatchewan’s Uniform Building and Accessibility Standards Act is administered and enforced by local authorities, including rural municipalities, says Bill Hawkins, the province’s chief building official. The law exempts on-farm buildings that support the practice of farming (including farm dwellings). Buildings built to generate income from commercial ventures are not considered farm buildings and are subject to compliance with the national building code. These might include fabrication and service operations, or retail outlets that market farm products and allow the public entry for business purposes. While the legislation does not distinguish farm buildings by size, Hawkins encourages farmers to embrace the codified standards — regardless of whether they are legislated and regardless of the size of the building being constructed. Given the cost of construction plus the cost of potential downtime for repairs or loss of property, meeting construction standards remains an important first-step in protecting your onfarm investment, says Hawkins. Alberta The Alberta Building Code does not apply to certain farm buildings of “low human occupancy” that are used to house livestock, or store or maintain equipment and materials associated with a farm’s operation. That changes if the farm is classified as an “agri-business,” which is the case with feedlots and commercial greenhouses, for example. Davio says that buildings used for dairy manufacturing, meat processing and as abattoirs must also meet legislated standards, primarily because there are human health implications. Like Hawkins in Saskatchewan, Davio urges farmers to view building codes as investment protection. “There may not be a code per se, but there are still best practices and good construction standards you might want to meet.” FF
Building to code affects insurance coverage and claims “Deemed inadequate” are two words farmers never want to see side-by-side after an insurance adjuster reviews a claim on losses or damages to a farm building. Which is why insurance specialist Glenn McGregor says that farmers who think building code exemptions work in their financial favour should call their insurance broker before turning the sod on any construction project, be it new, a renovation or an addition. McGregor is vice-president, prairie region, with Wawanesa Insurance in Manitoba. He says insurance can be denied if certain standards are not met, regardless of whether provincial building codes legislate those standards. Claims may also be declined in cases where construction practices or a lack of safety features are found to be inadequate after the fact. Before anything else, he says, building codes are all about the quality of construction and meeting certain standards, because safety is the number one concern. While insurers won’t visit a construction site to review standards, “the quality of construction of buildings plays a role in whether insurers are willing to insure them,” notes McGregor. Protection against disasters like fire or collapse, and properly constructed rafter systems, are among the features insurers are interested in, he says. Insurers can also ask that items like back-up generators and smoke detectors be in place before insurance is approved. “As a general statement, not building to code is not recommended,” adds McGregor. While he can’t speak to insurance issues, Bill Hawkins, Saskatchewan’s chief building official, recommends farmers build to code even when it’s not required. As he sees it, crop production and animal husbandry operations are commercial ventures, regardless of scale. From that perspective, he says, building to code is one more decision that can help the dollars you invest serve you well. FF
Who do you call? For information on building codes www.farmforum.ca/codesandstandards in Manitoba, farmers can call the Find information about building codes and Office of the Fire Commissioner at standards in your province here. 888-253-1488. Prudent farmers in Alberta and Saskatchewan will begin their search for information with their local municipalities. Even if building codes do not apply, the local authority will have rules regarding zoning and permits.
Farm Forum.cA | 21
fa r m l i f e
Innovation for the next generation
By Lindsye Dunbar
When Dustin Williams and Laura McDougald-Williams received their Outstanding Young Farmers (OYF) nomination, they were pretty surprised. “It came out of left field,” says Laura. “We usually focus on ways to improve our practices, so we hadn’t thought of being recognized in this way,” adds Dustin. Ironically, it’s that focus on improvement that helped earn them the title of Manitoba’s Outstanding Young Farmers for 2012. Dustin and Laura run Ash Haven Farms Ltd., a 4,000-acre cereal and oil-
The Williams family with their two daughters, Eva and Ardyn.
22 | Farm Forum | Summer 2012
seed operation along the Souris River in southwestern Manitoba. Dustin is the fifth-generation Williams to farm this land and he appreciates having worked alongside his grandfather and father while growing up. He still works with his dad and hopes one day to work with one or both of his daughters. With that kind of family history, it’s natural to want to leave a successful, sustainable farm legacy to the next generation. By focusing on environmental stewardship and innovation, the Williams are doing just that.
Thinking way outside the box To improve production, the Williams bring innovative thinking to their farm. “Fortunately, there is a lot of good research in our industry to draw on,” says Dustin. “You just have to find what fits into your operation.” As long-time zero till farmers, environmental stewardship plays a key role in their operation. “We farm a lot of highly erosive soils so we need to respect that,” says Dustin. For them, this includes protecting riparian areas and ensuring water runways are grassed. A key goal is to maintain tight control over crop inputs. “That reduces our environmental impact and also cuts costs — a win-win situation,” says Laura. They achieve this a number of ways. For example, about eight years ago, they started intercropping peas and canola. Both are seeded at a 2/3 rate and treated as one crop. “The peas don’t lie on the ground
PHOTOs courtesy Ash Haven Farms Ltd
and I can cut the amount of fertilizer I use service is important,” says Laura. Both per bushel of canola,” says Dustin. “The have been, and still are, involved in varinet benefit is a yield gain of 10 to 15 per ous community organizations. Among cent over growing the crops separately.” other activities, Dustin is a past president of the ManiThe Williams also toba/North Dakota use seed-placed miZero Tillage Farmcronutrients so they It’s that focus on ers Association, and can use low applicaimprovement that helped Laura is currently tion rates per acre chair of the Brandon but still benefit the earn them the title of University Board of crop. In addition, Manitoba’s Outstanding Governors. they use cover crops But it’s not only as an affordable way Young Farmers for 2012 serving in organizato keep the ground tions that sets this green and the soil healthy. “Sometimes it’s just a matter of couple apart. Neither Dustin nor Laura encouraging volunteers; other times we hesitate to step forward when the community needs volunteers. Laura is involved need to go in and seed,” says Dustin. in the local women’s shelter, the YWCA and a daycare. When the the Souris River Acting beyond the farm Having both grown up in the Souris overflowed its banks this spring, Dustin area, the Williams have retained a strong spent many long hours sandbagging to sense of community. “We believe public help protect the community.
Canada’s OYF program is an annual competition to celebrate and recognize farmers that exemplify excellence in the industry. As the Manitoba regional winners, the Williams are enjoying participating in the OYF program. “We get to go to events where we are sitting in a room full of like-minded people,” says Dustin. “It’s a great arena to network and share ideas.” In November, they will travel to Charlottetown for the OYF national event. Here, two national winners will be selected from among the seven regional winners. “We see a lot of great young farmers,” says Dustin. “It is an honour to represent them for a year.” FF www.farmforum.ca/OYFcanada
Outstanding Young Farmers’ Program information
Caption goes here Caption goes here Caption goes here Caption goes here
The Williams keep tight control over crop inputs and help reduce their environmental impact through innovation, such as with their modified seeder (above) and intercropped peas and canola (below).
Farm Forum.cA | 23
CropTalk
Volume 21 | Issue 3
What’s new with Bayer CropScience products
InVigor hybrids evolving to maintain their status as Canada’s #1 canola performer E
ach year growers challenge themselves to grow a higher yielding canola crop, and with the help of InVigor® canola hybrids, they are often able to exceed their expectations. For more than 16 years, Bayer CropScience has been continually refining its InVigor lineup – improving its profile and adapting it to meet the changing needs of Canada’s canola growers. Today the LibertyLink® system is the leading herbicide tolerant system in the marketplace. “InVigor hybrids today are the foundation of many canola growers’ annual cropping plan,” says Blaine Woycheshin, Manager, Oilseed Crops – InVigor Seed for Bayer CropScience. “They are the products that growers know will provide early season vigor and give them the yields they expect – even when conditions are tough.” The latest addition to the InVigor hybrid lineup is InVigor Health L156H, launched for the 2013 growing season. Sold exclusively through Cargill and select independent retails this hybrid offers those who choose to grow a specialty canola higher yield and higher returns with a simple program. As part of the InVigor Health series, it produces a healthier oil with high oleic content, low levels of saturated fat and no trans fat — and yields at 138% of checks. The 2013 InVigor hybrid lineup will include: InVigor L150. This hybrid yields at 143% of checks and is the first hybrid to repeat as top yielder in the WCC/RRC coop trials. Grown on the most acres of any canola in Canada in 2012!
24 | Farm Forum | Summer 2012
InVigor L130. This is an early maturing hybrid that reaches maturity two days earlier than the average of the checks with yields at 136% of checks. InVigor L120. This is an early maturing hybrid suitable for all growing zones with yields at 134% of checks. With an average of over three days earlier maturity than the average of the checks, it can make all the difference in a short or difficult growing season. InVigor 5440. This consistent performer with yields at 135% of checks offers superior lodging resistance and delivers an easy harvest and a high quality canola crop. InVigor L154. Available exclusively from InterAg retailers in Western Canada, this mid-maturing hybrid has superior lodging resistance and yields at an impressive 141% of checks. InVigor L159. This new experimental hybrid is suitable for all growing zones and has exceptional yield potential at 140% of the checks. Distribution is limited. InVigor L135C. This is the first InVigor hybrid with clubroot resistance, a growing concern for farmers in certain areas with clubroot. With yields at 138% of checks, three days earlier maturity than the average of the checks, it is suitable for all growing zones that have clubroot presence. In the future, researchers with Bayer CropScience have been researching new innovations to expand and improve upon the existing InVigor lineup. Growers can expect to hear more about this continued innovation from InVigor for 2014 and beyond. CT The checks used for comparison are 46A65 and Q2
A Newsletter from Bayer cropscience
Liberty herbicide’s unique chemistry helps keep resistance away
T
here’s not a grower across Canada who wouldn’t choose to delay, or keep herbicide resistance out of their fields. The management issues and yield concerns are very real, now with glyphosate resistance identified for the first time in Western Canada last year. For canola growers, one way to keep resistance at bay is by rotating
in Liberty® herbicide. For use on all LibertyLink canola hybrids, Liberty is the only Group 10 herbicide on the market, making it the go-to product for chemical rotation. Liberty’s unique mode of action prevents weeds from detoxifying ammonia, a natural product of plant metabolism. When ammonia builds up to
a critical point, the weeds die. Liberty is the only herbicide that works this way, so Liberty’s herbicide class is unique within Canadian agriculture. By utilizing multiple herbicide modes of action in their cropping plans, growers can effectively delay the onset of resistance. Other resistance management strategies include crop rotation, ensuring weeds are controlled throughout the season to reduce the weed seed bank in the field, and growing a competitive crop through proper seeding rates and optimal fertilizer placement. While glyphosate is a critical tool for Western Canadian farmers, the current over reliance on the chemistry can only increase the potential for further resistance to develop. Now that the first confirmed case of glyphosate-resistant kochia was announced in Southern Alberta in 2011, it must act as a wake up call to all growers to re-evaluate their own herbicide rotations. By using Liberty on their canola, growers can save glyphosate for where it’s needed most, and this can be done without sacrificing weed control, yield or the bottom line. CT
Compare the incomparable InVigor To see how InVigor is performing in a field near you visit our Demonstration Strip Trial (DST) results online at InVigorResults.ca What makes our DSTs a great source of credible information? • Grower managed, using their equipment and practices • All DSTs are replicated twice within the same field for maximum validity of results
• DST numbers are compiled from all growing regions and soil zones to provide the most accurate performance • All DSTs are monitored to ensure all crop applications (herbicide, fungicide, insecticide) and swathing are completed at the most appropriate time to ensure optimal yield and oil content • Hybrids/varieties are only compared to one another when grown at common sites • Rigorous attention to trial methodology by Bayer CropScience Market Development Specialists ensure quality trial results
Farm Forum.cA | 25
CropTalk Calculating your ROI Calculating your fungicide return on investment is not only easy, it’s also a great way to gauge the success of your application. 1. Compare your fungicide treated yield vs. the yield you received from an untreated test strip to calculate your yield advantage ($/bu). 2. Multiply your yield advantage by the current commodity price (in $/ac.) to see your $/ac. benefit. 3. Subtract your application costs (both fungicide and application in $/ac.) 4. Then multiply by the total number of acres you planted EXAMPLE Based on current commodity prices, application costs and the +8.4 bu./ac. advantage Prosaro® has averaged over the past four years, here is what your ROI could look like on 1000 acres of wheat.
BENEFIT - APPLICATION COST x ACRES = ROI 8.4 bu./ac. x $7
$17/ACRE PRODUCT + $4/ACRE APPLY
1000 ACRES
$37,800
*This calculation is based on the +8.4 bu./ac. Prosaro advantage from Market Development Trials performed from 2008–2011 and a product price of $17/ac. and application costs of $4/ac.
Sclerotinia Risk Alert on FarmZone.com is now live B
ayer CropScience and The Weather Network have partnered to create an online Sclerotinia Risk Alert tool for Canadian canola growers. The tool monitors real-time environmental conditions that affect the development of sclerotinia and provides a risk rating by location. Favourable conditions for sclerotinia infection include prolonged periods of rain, humid conditions and warm temperatures ranging from 15-25 degrees both before and during flowering. Other risk factors that contribute to the prevalence of the disease include the number of years since the last canola or broadleaf crop rotation, the severity of disease from the previous host crop, current crop density and the presence of the disease-causing spores during flowering. Now, canola growers can have another tool to help their spray decision by simply visiting FarmZone.com to view the level of risk in their area. Because the sclerotinia risk rating fo r each area is located just below the corresponding 24 hour forecast, it’s as easy as checking the weather. CT
C
hoosing to apply a fungicide means betting on the odds. In the past, growers took into account weather patterns and disease history before deciding whether or not they should spray. As disease has become more widespread and control measures have improved growers are seeing it pays to spray. “Growers are starting to realize that a fungicide application becomes even more important to use on their best, healthiest looking crops because of the
26 | Farm Forum | Summer 2012
incredible potential those crops represent,” says Graham Hastie, Manager of Cereal Fungicides, Insecticides and Seed Treatments for Bayer CropScience. “Our research has shown that growers are seeing some amazing returns on their investment when they include a fungicide application as part of their cropping plan. Not only are the yields increasing, but the quality of their seed is better than ever before. And this is the case in wet or dry, warm or cool seasons.”
Bayer CropScience has compiled four-years of results from its fungicide demonstration strip trial program to look at the return on investment from the application of its cereal fungicides, Folicur® EW and Prosaro. These trials were spread across soil zones, experienced different disease pressure and varying weather conditions. In virtually every trial, no matter what the disease pressure or weather, there was still a positive return on investment.
PHOTOs (left) genesis studio; (opposite page) bayer cropscience
The proof is in the numbers – it pays to spray
A Newsletter from Bayer cropscience
Not all fungicides are created equal T
oday the evidence is clear – the underlying disease pressure across Western Canadian fields means that a seasonal application of a fungicide is a prudent investment. But growers need to take a good look at the chemistry they use, or they could make the situation worse, instead of better. “The goal is to keep disease out of your fields and to protect the flag leaf and head for optimal yield and grade,” says Graham Hastie, Manager of Cereal Fungicides, Insecticides and Seed Treatments for Bayer CropScience. “But if the wrong fungicide is applied at the wrong time, what appears to be a high yielding crop can be significantly downgraded due to mycotoxins in the grain. Fungicides Prosaro and Folicur EW from Bayer CropScience give growers the flexibility to tackle the diseases that can reduce their bottom line.” Both Prosaro and Folicur EW are triazole-based fungicides that can be used to reduce fusarium head blight (FHB), and as a result the mycotoxin deoxynivalenol (DON), which can be toxic to livestock and result in lower quality grain. Both products have a wide window of application and combat both leaf and stem disease. Studies have shown that fields sprayed with triazole-based fungicides have higher yields and reduced rates of DON when compared to the untreated check. Many industry sources confirm a Bayer CropScience study proving that fungicides from the triazole family provide FHB suppression and effective DON reduction. Conversely, the same studies highlight that fungicides from the strobilurin family can actually increase DON levels in cereals when applied at head timing. Fungicides like
When applied at head timing, Prosaro had the highest return, regardless of whether or not fusarium head blight (FHB) was present. Already proven performers against outbreaks of FHB, both Folicur EW and Prosaro applications also resulted in better grain yield and quality. Both the 3⁄4 rate and full rate of Folicur EW provided a strong return on investment when applied at the flag leaf. On wheat, even when disease pressure was zero-low, there was a 3.5-5.8 bu./ac. gain with the application of a fungicide. That increased to up to 9.9 bu./ac. if the pressure was higher. Barley crops saw more than 7 bu./ac. gain over the untreated check, depending on product used and application timing.
Stratego®, Headline® and Twinline™ (used to control powdery mildew, septoria, rust and other diseases), can dramatically increase DON levels even if combined with a triazole chemistry, if applied at head timing.* “The theory is that removing the non-mycotoxin producing fungi at the head of the plant can effectively reduce competition for FHB, allowing the DON to flourish,” says Hastie. “While the greening effect from strobilurins can increase grain yield, it also keeps the moisture content high in the kernels, which is an ideal condition for DON formation.” Growers should consider timing, along with disease history when choosing a fungicide product. As with most fungicides, the best results come from application prior to infection, or in the very early stages of disease development.
If disease is not managed with the right product, it can have a devastating impact on both yield and seed quality “In the past, one of the toughest decisions growers made was choosing to use a fungicide even when their crop looked good,” says Hastie. “Growers today have seen proof that they get a solid return on investment from a fungicide application because disease is now present across all growing regions in Western Canada. However, if disease is not managed with the right product, it can have a devastating impact on both yield and seed quality.” CT *Source: Halley & Arens, North Dakota State University, 2011
Disease flourishes in moist conditions but even in areas of low moisture, there was a noticeable increase in yield. Under growing conditions with less than 85% of normal moisture, there was a 1.4-4.2 bu./ac. difference, and that advantage grew to 10 bu./ac difference in areas of high moisture. “A quick calculation will show you that based on 1,000 acres, on average growers have a return on investment anywhere from $34,400-$48,200 depending on the product applied, the rate applied and the application timing,” says Hastie. “Our products have been proven effective given all disease scenarios in Western Canada and result in big returns that growers really can’t afford to pass up.” CT
Full details of the DST trials are on the Bayer CropScience website at BayerCropScience.ca/ItPaystoSpray. The results are broken down by province for localized results. You can also read about the experiences of growers who have used Prosaro at at BayerCropScience.ca/GrowersTalk.
Always read and follow label directions. Folicur®, InVigor®, Liberty®, LibertyLink®, Prosaro® and Stratego® are trademarks of Bayer. Bayer CropScience is a member of CropLife Canada.
Farm Forum.cA | 27
PROSARO
For unparalleled yield and quality in your wheat and barley crop, choose Prosaro速 fungicide. Prosaro delivers a complete disease protection package to control FHB, reduce DON levels and control leaf diseases. With two leading actives for both curative and protective activity, Prosaro delivers the highest level of protection available for leaf and head diseases in cereals. Rest easy with Prosaro. For more information visit BayerCropScience.ca/Prosaro
COULDA SHOULDA
WOULDA
BayerCropScience.ca/Prosaro or 1 888-283-6847 or contact your Bayer CropScience representative.
Always read and follow label directions. Prosaro速 is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.
SBC12098.PROSARO.1.indd
DID
C-53-07/12-BCS12185-E
SBC12098.PROSARO.1.4C