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Issue 111 : February 2011

Features: Taming the Bulls & Bears: You Can’t Keep Everything. . . . . . . . . . 4 Completing Your Own On-Farm Trials . . . . . . . . . . . . . . . . . . . 5 NAWG “Thrilled to See” USDA Wheat Research Grant . . . . . . . . . . 8 Maximizing Opportunities for the Future . . . . . . . . . . . . . . . . . 10 Asphalt Agriculture: Do You Feed Your Cows Corn?. . . . . . . . . . 12 Public Research: Basic to Minnesota’s Agricultural Productivity. . . . 14 Goodwill for Wheat: Minnesota Trade Mission to China . . . . . . . . 19 ON THE COVER: A seedling spouts on freshly-prepared soil, a sure sign of spring and the promise of another busy crop season ahead.

The Farm Side: Top 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 C om

Price Charts Cheat-Sheet

Publisher

Minnesota Association of Wheat Growers

2600 Wheat Drive, Red Lake Falls, MN 56750 Ph: 218.253.4311 | Email: mnwheat@gvtel.com Web: www.smallgrains.org

Editorial

Betsy Jensen, Prairie Grains Magazine

2600 Wheat Drive, Red Lake Falls, MN 56750 Ph: 218.253.4311 | Fx: 218.253.4460 Email: betsy.jensen@northlandcollege.edu

Circulation

Trying to look at price charts for commodities? You have to know the trader language, which are the symbols for the commodity, the month and the year. Here’s a cheat sheet you can save to help you quickly pull up those price charts.

m on

Sy m b

o ls eapol i s Wh Z W eat ( h C h ic a a rd r e g d s pr w inte o Wheat, ing w E r whe le c t r o heat) at) KW nic (s of t re Kans as Cit d y Wh Z S eat ( h S oy b a rd r e ea n s, d w in E le c t ZC r t er w on i c C or n heat) , E le c t r on i c M on th Jan How to en Feb F t er a sy m b ol G Ma rc : h Cont r H Apr i l ac t S y m b ol i.e. M / M on W Z11 May J t h / Ye ar June K July M Aug N Sept Q Oct U Nov V Dec X Z M W

M inn

PRIC CHARTE CHEAT S SHEET

Carol Pederson

2600 Wheat Drive, Red Lake Falls, MN 56750 Ph: 218.253.4311 | Fx: 218.253.4460 Email: mnwheat@gvtel.com

Advertising Sales

Tim Dufault

2607 Wheat Drive, Red Lake Falls, MN 56750 Ph: 218.253.4391 | Fx: 218.253.4460 Email: tdufault@prairieagcomm.com

About Prairie Grains Prairie Grains magazine is published seven times annually and delivered free of charge to members of these grower associations, and to spring wheat and barley producers in Minnesota, North Dakota, South Dakota and Montana. All others, please remit $15.00 per year. To subscribe or change address, please write or call our circulation department.

Minnesota Association of Wheat Growers and Minnesota Wheat Council 2600 Wheat Drive • Red Lake Falls, MN 56750 • Ph: (218) 253-4311 Email: mnwheat@gvtel.com • Web: www.smallgrains.org

Montana Grain Growers Association P.O. Box 1165 • Great Falls, MT 59403 • Ph: (406) 761-4596 Email: www@mgga.org • Web: www.mgga.org

North Dakota Grain Growers Association 2401 46th Ave SE , Suite 204 • Mandan, ND 58554 • Ph: (701) 222-2216 Email: danw@ndgga.com • Web: www.ndgga.com

Northland Community and Technical College 1101 Highway One East • Thief River Falls, MN 56701 Ph: (218) 683-8800 • Email: ron.dvergsten@northlandcollege.edu Web: www.northlandcollege.edu

South Dakota Wheat Inc. 116 N. Euclid, Box 667 • Pierre, SD 58501 • Ph: (605) 224-4418 Email: wheatinc@midco.net • Web: www.sdwheat.org

By Betsy Jensen, Ag Commodity Instructor, Northland Community & Technical College, betsy.jensen@northlandcollege.edu

Taming The Bulls & Bears You Can’t Keep Everything

Page 4

setting. I work with Red River Valley farmers, but in speaking with my colleagues around the state, and into North Dakota, the numbers look equally fantastic. Of course there are always a few problem areas, but those farmers were generally dealing with weather issues, and not marketing issues. So farmers sold too early, and are still making record profits. We forward contracted, watched prices go up and then sold our non-contracted grain for more than we ever imagined last spring. So where’s the problem? There have been, and will be in the future, crop years when you could have sold at the high, and still not made money farming. Staying on the farm involved “loss minimization” instead of “profit maximization.” The average price you will receive for the 2010 crop is significantly more than the price you expected to receive last spring. And looking ahead to 2011, we are being offered some great pricing opportunities. Our second problem is that we sold too early, but I have poked a few holes in that theory. How can you compare your performance against something that was never there? We miss money making opportunities every day, and not just in crop marketing. You should have bought that quarter of land ten years ago. You should have waited to lock in interest rates when you finally bought the land. You should have listened to your brother-in-law

Prairie Grains • February 2011

when he told you about this great stock called “Google.” We miss financial opportunities every day, but we do not always see them because we don’t waste our time looking for mistakes. Why are you

wasting your time focusing on the mistakes you made in the past, instead of focusing on the profit opportunities for the future? Everything is crystal clear in hindsight, right down to which crops you should have

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ow, I am sure glad I spent all that money on a bachelor’s degree in agricultural economics so I can calculate how badly I have marketed my crops over the past few years. The pain of being wrong, with nearly every sale, is becoming more and more difficult to bear. Marketing groups are becoming more like support groups, elevator managers have thrown their arms in the air in defeat, and farmers deliver their contracted grain, taking extra precautions to avoid looking at the cash grain board. Who wants to see today’s grain prices, when you are delivering contracted grain for a buck or two, or maybe three dollars less than the current bid? Fortunately, I am a farm management instructor, and that involves going over farmers’ financial records. I do not just hear anecdotal reports of who sold what, and for how much, but I actually see the elevator receipt, the checkbook deposit, the forward contract and the trading account. The numbers don’t lie. I am not the only one who has sold too early. Which brings me to two important facts: First of all, farm income for 2010 looks good, and secondly, how can you sell something too early? Let’s dive in and look at the facts. My farm management colleagues and I are in the process of compiling the 2010 crop year financial numbers, but preliminary numbers are incredible, most likely record

planted, and when you should have sold them, but as long as the farm remains profitable, keep doing what you are doing. Regret is a powerful emotion, but one you should push aside when making future decisions. The best advice I can offer is from my grandma, who says “You can’t keep everything.” She was referring to my dad’s baseball card collection, which she threw away. To add a little extra fuel to the fire, she saved his pencil collection. So the baseball cards were tossed, but the shoebox full of pencils was kept. Who knows if there was a Hank Aaron, Ted Williams or Yogi Berra card in the collection. We’ll never know because cards were tossed, but Grandma was right, you can’t keep everything. Keep that in mind the next time you sell some of your crop.

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Completing Your Own On-Farm Trials

here is only one opportunity each to year to plant and harvest a crop. There is no room for error, and getting it right the first time is critical. There are an infinite number of problems to solve when it comes to agronomics on your farm throughout the season. Which variety to plant? Should you add seed treatment? Do you need a fungicide or insecticide? To make matters worse, the best agronomic practices on one farm may not be the best practices on a neighboring farm. There is no “one size fits all” method to raising a crop, and a growing number of producers are taking agronomic research and moving it onto their own farms. Ryan Casavan, Wensman District Sales Manager, decided to use his family’s farm in Northwest Minnesota to develop on-farm trials in wheat and soybeans. From soybean fungicide to wheat fertilizer, Ryan and his father Monte have been conducting on-farm trials for the past four years. During 2010, the Casavans conducted a trial on wheat fertilizer and protein levels. “We wanted to find something we could use on our farm, with our current practices, to help with our protein levels in wheat,” says Casavan. One of the keys to on-farm trials is to make the research personal to your own operation, using your existing equipment and manpower.

Casavan does caution that on-farm research projects will be more time consuming than you expect. As a plant science graduate student at North Dakota State University, Casavan was accustomed to small plot research, but on-farm research does have its own set of challenges. “You still have to get your field done. It’s still your livelihood,” he cautions. Different fertilizing rates tie up different trucks, and when the rain is coming, there is always the thought to “hurry up and get done.” Casavan warns, “There’s going to be a lot of missed data because you’re not going to want to stop for this. Make sure you spend the time to get this data.” When asked the motivation behind his on-farm trials, Casavan admitted his wife thinks he’s crazy for reading agronomy journals at night, but he enjoys agronomy, and loves the challenge of finding solutions to problems on his farm. “I want to find a way to maximize yield on my farm,” says Casavan. By taking control of your own research, you can find a personalized solution that will work on your farm, with your farming techniques. Before you begin your own on-farm trials, you must take the time to walk all the way through the research from start to finish. During 2010 Casavan developed a wheat fertilizer trial using a slow release nitrogen, like ESN and

blended it with MAP, and then streamed 28% nitrogren on fields he knew would be low on nitrogen. A sample of some problems Casavan faced included: How much ESN can you put down the tube without hurting it? How hard can you blend it with MAP without wrecking the polymer core? What if the N becomes available too early? What wheat varieties may be able to stay standing with the extra N? Despite the amount of time and effort involved in on–farm trials, Casavan has already started his 2011 wheat fertilizer trials. Using GPS to track the field, Casavan has strips in the field with a lower nitrogen rate, and will add ESN to those strips next year. Casavan has also recruited additional farmers to participate in the trial with him. With more data points, the research becomes even more relevant. Despite the work, Casavan enjoys finding solutions, or from another perspective, ruling out agronomic practices that do not work on his farm. The final advice from Casavan is to be prepared to spend more time and effort than you think. “Bad data is worse than no data” he warns. With four years of on-farm research under his belt, Casavan is looking forward to finding more answer to agronomic questions during the 2011 crop year.

February 2011 • Prairie Grains

Page 5

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NAWG “Thrilled to See” USDA Wheat Research Grant

AWG applauds USDA’s recent announcement that the wheat and barley research communities will be awarded a $25 million grant from the National Institute for Food and Agriculture’s (NIFA’s) Agriculture and Food Research Initiative (AFRI). In the world of wheat research, the grant is a significant investment of public funds in work critical to the industry’s continued profitability. It will span five years and include 56 scientists from 28 institutions, led by Dr. Jorge Dubcovsky of the University of California at Davis and Dr. Gary Muehlbauer at the University of Minnesota. “Enhancing public and private research is at the heart of NAWG’s strategic plan, and this is an exciting infusion to our public wheat research system,” said NAWG Chief Executive Officer Dana Peterson. “These dollars will return significant benefits to farmers by developing tools to adapt varieties planted by growers across the country, which is a significant step in the right direction as we seek to raise wheat yields 20 percent by 2018.” The goal of the project is to develop methods to produce new varieties that minimize the damage to crops from stresses associated with climate change. The long-term objective is a 10 percent reduction in both nitrogen and water use in barley and wheat production, though the project will also focus on traits related to fungal

Page 8

diseases and low temperature tolerance. To achieve these goals, the AFRI project will build on the rapidly decreasing costs of genetic markers and other tools to accelerate breeding cycles, improving publicly-available germplasm, standardizing methods for high-throughput field evaluation and integrating genetic and field measurements into public databases for use by all breeding programs. A systematic genotypic and phenotypic characterization of varieties in the National Small Grains Collection (NSGC) and commercially available wheat and barley lines will accelerate the introduction of novel non-GMO genes into cereal breeding programs. The NSGC provides access to the ancestors of modern wheat and barley, which carry a wide diversity of genes for crop improvement previously underutilized by plant breeders because of insufficient funding and genomic information. Importantly, the project will also facilitate training for a new generation of plant breeders in the most advanced breeding technologies, which is critical for wheat research development in the coming decades. “We applaud NIFA for their support of basic and applied wheat research, which is vital to all American wheat farmers,” said Jane DeMarchi, NAWG’s director of government affairs for research and technology. “We look forward to working with scientists during the project to maximize the positive benefits for farmers.”

Prairie Grains • February 2011

NAWG works with organizations and individuals throughout the wheat chain to demonstrate the value of wheat research, and NAWG, U.S. Wheat Associates and affiliated state organizations from both groups provided a letter of support for the project application. Wheat research is a crucial but often under-funded aspect of our country’s – and the world’s – food security. The United Nations’ Food and Agriculture Organization (FAO) has estimated 20 percent of calories consumed by humans come from wheat. Still, with traditional breeding, one new variety adapted to a specific geographic area and wheat class can take more than a decade to develop and get into the hands of wheat producers. And, unlike that in other major crops including corn and soybeans, wheat research has been disproportionately

dependent on public funds for basic research and breeding. This is changing, however, as more private companies announce new investments and partnerships with public university programs to work toward both conventional and, eventually, biotech wheat varieties. “It is so vital for wheat breeding to continue to become more advanced to solve the problems farmers like myself have on our operations so we can continue to produce a stable and affordable food supply,” said NAWG President Jerry McReynolds, a wheat producer from Woodston, Kan. “We face drought, heat, pests and other challenges that can be helped by good research in our public universities and, increasingly, by private companies. We’re hopeful this project will be able to build on the knowledge we already have and find new answers to our most pressing challenges.”

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Maximizing Opportunities for the Future By Andy Zenk, Agribusiness Consultant, AgCountry Farm Credit Services

s a farmer, you know first hand how important it is to “maximize opportunities.” You work long hours at this in all areas of your farm. The examples are wide ranged. Often, a farmer’s focus on maximizing opportunities includes the following: maximize your productivity of your acres in each year’s crop plan; maximize the opportunities you have by knowing exactly where your operation’s break-even points are and how to effectively market and implement a crop insurance plan to take full advantage of your profitability;

Page 10

Andy Zenk and maximize your opportunities each year with effective records and tax planning. With all of the areas you “maximize opportunities,” does your annual list include the need to maximize your opportunities for the future of

Prairie Grains • February 2011

your farm? Do you think about how what you do today will help you in the future when the time comes to transition your farming operation? Often, plans that maximize opportunities for today hinder the options you have for the future. This conflict creates a difficult situation, one that cannot be overlooked. Hockey legend Wayne “The Great One” Gretzky once said something that rings very true to the importance of maximizing your opportunities for the future. Gretzky was asked a question on his key to success as a hockey player. His response was so simple, yet so profound. He said “A good hockey player plays where the

puck is. A great hockey player plays where the puck is going to be.” It is crucial that you think about what you can do to help you “skate where the puck is going to be” in your farming career. You may think that your career will lead you to a reality where “success in the future” works itself out. That may be, and I hope you are right. On the other hand, many times those who disregard the need to plan for the future find themselves in a reality where they have closed the door on many opportunities that once were available. Actions they took years ago have closed the door on being able to retire at a time that they are ready. They Continued on Page 12

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have closed the door on being able to bring the next generation into the farm, no matter how much they want to. They have died untimely and burdened their family with unnecessary estate taxes and administration costs and left them with a difficult financial situation. These are grim thoughts, but none of this has to be. Planning for the future can help change your eventual reality to your advantage. Think of it this way. Those of us who work for someone else and depend on a wage for their living have one of two options when it comes to the future. There are basically two options for wage earners. You can plan for retirement, or you can not. Regardless of what path is chosen, one thing is certain: there will come a time when a wage earner is no longer able to work to earn a living. At that point, their independence and ability to live as they want depends on what track they took to prepare for that point. Those who planned for the future likely have a reality of independence and enjoyment of life. Those who did not, likely have a different outcome at that time. Farmers, as self employed individuals, have the same two basic options. Those who plan for the future have many opportunities to plan for a

secure and independent future. They are often at a point where they control their destiny and their independence. Those who do not plan likely face a different reality. Their choice led them to a point where they are faced with difficulties such as overwhelming debt or tax issues that control their lives. What reality do you want? None of us know when our time is up on this earth, or when we will no longer be able to earn a living. A crystal ball would be nice, but that is not reality. Reality requires that we plan for the “now”, maximizing our opportunities to ensure for a secure future for you and your family, regardless of where you are in life. Whether you are just starting out, working to expand, or working to retire, there are benefits to develop a plan that incorporates maximizing your opportunities for the future. I encourage you to add this to the list of ways you maximize your opportunities. Andrew Zenk is an Agribusiness Consultant with AgCountry Farm Credit Services in Grand Forks. In this capacity, he helps families work through a variety of issues, including the complexities of farm transition, retirement, estate planning, and business planning. He can be reached at 701-787-6651 or at andrew.zenk@agcountry.com.

ASPHALT AGRICULTURE

An Outside Look at Agriculture Do You Feed Your Cows Corn? The following story was told by a Minnesota grain and cattle farmer, and the story helps illustrate the too common “I saw the movie and am now an expert” mentality. “I was booking a ski vacation in Montana with a booking agent from a Pacific Standard Time phone number. I don’t know where exactly he’s from, but we’ll say California, as they are easy targets. Well, somewhere in the process of choosing a town house to rent I relayed that we were cattlemen and we raise beef cows. With great enthusiasm, Chad, the booking agents, says, “Oh my gosh, did you know that most cows are fed CORN?” Because I am never a quick one to have the right words I reply with some sort of, “Hum...”. Chad then goes on to tell me that I really need to see the movie Food Inc. It then dawns on poor Chad that we might be doing the formidable, feeding our cows CORN. Chad says, “Do YOU feed your cows corn?” I reply, “Yeah.” Chad then assures me that if only I’d see the movie Food Inc, it is very likely that we would change the way we feed our cows. Again, I reply with truly great wisdom, “Hum...” Chad then goes on to tell me that he loves beef, he’s a beef kind of guy, but since the movie Food Inc, he is very careful about what kind of beef he eats and buys. Well, I’m afraid I didn’t do any justice to our industry by not being quick with answers, but we didn’t have time to debate the menacing potential of feeding cows corn as he had some people on hold. It’s yet again a testimony as to what the opposition can do to consumer beliefs, with some great media. However, it did provide some comic relief for my husband and I.”

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Public Research:

Basic to Minnesota’s Agricultural Productivity

ith sudden death syndrome (SDS) in soybeans confirmed in 14 new Minnesota counties last year, it appears the disease is spreading northward, according to scientists at the University of Minnesota. “We are attempting to improve our understanding of the SDS range in the state and breed for resistance,” says Dr. Jim Orf, professor, Department of Agronomy and Plant Genetics, University of Minnesota. SDS is one of several yield limiters the University’s soybean production researchers have in their sites. Orf says that a food variety soybean that his team is developing sur-

Page 14

prised them with strong SDS resistance. “We weren’t even looking for that, but we’ll take it as a parent in SDS breeding.”

ROI: Discovery of Long-term Opportunities That’s the nature of public research – discovery of long-term opportunities for production and profitability based on local and regional climate, soils and growing conditions. And sometimes university scientists find things they weren’t even looking for. But with their long- term view, they can apply discoveries from one study to the goals of another. While private research by

Prairie Grains • February 2011

agricultural companies plays an essential role in development of new technology for farmers, it is public research that discovers long-term opportunities for production by overcoming location-specific yield limitations, such as SDS. Production agriculture in Minnesota has delivered a strong return on the investments made in public research. Dr. Phillip G. Pardey, Department of Applied Economics at the University of Minnesota, estimates a national social benefit return of $32 per dollar spent on federal agricultural research, and Minnesota ranks fourth in the nation for benefits per dollar.

Slowdown in Public Funding for Production Agriculture Research Despite its returns to farmers, rural communities and consumers, public funding for production agriculture research has slowed considerably in the past 20 years. Farmers are very dependent on public research because the federal government and academic institutions perform a much larger portion of the research done in agriculture. According to Pardey, agricultural research increased only 1.1 percent per year between 1967 and

2007. This compares to 4.5 percent annual increases in research funded by the U.S. Department of Health and Human Services. His data also shows that the rate of growth in U.S. agricultural productivity is slowing as investments designed to spur agricultural productivity decline.

State funding for agricultural production research is declining too, as Minnesota and other states strive to balance budgets.

Checkoff Funds Help Bridge the Gap “As farmers, we do support public research through our checkoff

programs, but Federal and state funding, particularly in such a strong agricultural state as Minnesota, must increase if farmers are to meet world food demands and sustain natural resources,” says Gene Stoel, Lake Wilson, Minnesota Soybean Research & Promotion Council chairman. The Minnesota’s soybean checkoff invests more than $1.5 million in research annually, and the University incorporates checkoff funding with grants from organizations such as the Consortium for Plant Biotechnology, to compensate for reductions in public funding.

Catalyst for Other Discovery Public research can be a catalyst for other research, according to Orf. “At the University we collaborate with other researchers in Minnesota, the U.S. and around the world.”

Public researchers often make the discoveries that lead to product commercialization by private companies. In fact, the genetics in many of today’s seed varieties began with public research. Most research in the area of germplasm enhancement is at the university level, and many of the great discoveries in agricultural research, including genetic modification and mapping the soybean genome, began in university laboratories.

Minnesota Benefits from Public Research “Technology developed from public research helps farmers produce more food on fewer acres, while helping sustain our natural resources,” says Stoel. “Increased public funding for agricultural research is essential if farmers are to meet rapidly growing worldwide food demands.”

“Technology developed from public research helps farmers produce more food on fewer acres, while helping sustain our natural resources. Increased public funding for agricultural research is essential if farmers are to meet rapidly growing worldwide food demands.” Gene Stoel, Lake Wilson, MN, Chairman of the Minnesota Soybean Research & Promotion Council.

February 2011 • Prairie Grains

Page 15

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Trademark of Dow AgroSciences LLC WideMatch is not registered for sale or use in all states. Contact your state pesticide regulatory agency to determine if a product is registered for sale or use in your state. Always read and follow label directions. ©2009 Dow AgroSciences LLC M38-202-004 (12/08) BR 010-41781 DAAGWMCH8016-S

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Prairie Grains â€˘ February 2011

Goodwill for Wheat Minnesota Trade Mission to China By Amanda Hvidsten

fter a 14-hour flight last September, Rhonda K. Larson, Chairman of the Minnesota Wheat Research & Promotion Council, arrived in Shanghai, China, with former Governor Tim Pawlenty for Minnesota Trade Mission 2010. The goodwill journey across the globe included representatives of all the major Minnesota ag commodities, numerous business representatives and others close to Pawlenty. For Larson, the trip’s ultimate goals were to promote ag products to Chinese officials. “I farm with my brothers and my son north of East Grand Forks, and this is my seventh year on

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the board of the council. A big part of what we do focuses on research and development, and promoting wheat is really what keeps me going – finding ways to get increased yield and better quality,” said Larson. China is a huge market for ag products. Even though the country is dotted with its own farms, the sheer population of China requires the importation of food. “They were really excited that we were there. Wheat producers are represented in China through U.S. Wheat Associates, our marketing arm, so this was really a trip to enhance the relationship of agricultural trade,” said Larson. Minnesota has enjoyed a steady increase in agricultural exports throughout the last decade; however, she was quick to mention the state’s need to keep wheat as a viable and valued output. “We’re really into [wheat] in

our region because of rotational purposes, planting it in front of sugar beets,” she said. “If the price stays up people will continue to do it. But, some are looking into using soybeans or edibles.” So, while they weren’t selling, ensuring long-term partnerships for wheat’s future was on Larson’s agenda. Beyond that, “Ag seems to open the door for a lot of non-ag business looking to partner with China,” Larson said. Another reason why continuing a solid relationship is ideal. On the front end of the trip, the trade delegation saw Best Buy China headquarters, networked with the Minnesota Club of Shanghai, received a geo-political briefing from the U.S. Consular staff, met with the American Chamber of Commerce, and visited IBM China. The ag representatives in the group then traveled 60 miles

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west from Shanghai to Suzhou, seeing an interesting, albeit small, portion of the People’s Republic. One stop was a dairy farm where Larson noted, “the technology was fairly limited, but they were very proud of where they were.” Small and aged tractors hauled supplies. Two-wheeled carts carried steel drums of fresh milk. In light of this it may not be surprising Larson saw regulations as an apparent difference between Chinese and U.S. farming. Even with its farms, Suzhou is fairly populated and modern area. Yet, it has nothing on neighboring Shanghai – the most populous city in the most populous country in the world. More than 19 million people live there; a stark difference from the wheat-growing regions of Minnesota. Larson was intrigued not only with how many people there were, but how those people interacted with each other and dealt with each other. “What I saw were tall buildings and tall buildings, and huge cranes putting up more tall buildings,” she said. “Honking and bumping into each other is such a constant there. It isn’t rude, it’s just a way of existing around so many people. It is so tight. There are so many smells. It’s a little overwhelming.” Overwhelming, maybe. But, the effects that population has on the environment, and its residents’ reportedly increased concern with it, might be one of the sparks behind China’s dedication to another ag-related product: bio mass. For wheat-growers, bio fuels Continued on Page 21

February 2011 • Prairie Grains

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have a different, yet equally enticing motivator: product positioning. “That’s been on our radar for a long time,” she said, “because if ag products can help produce energy, that’s another outlet for our products.” Researchers, developers, government officials, growers and others - those who benefit from growing the crops to make bio fuels and those who benefit from using them, met to share knowledge at the 2010 World Bioenergy Symposium. Larson and her fellow ag commodities representatives attended while in Suzhou, where former Minnesota Commissioner of Agriculture Gene Hugoson presented on U.S. biofuels policy. Larson said, “We went because commodities are starting to look at bio fuels and how certain things like wheat can be used. Just like sugar beets are now getting bigger (in that arena).” Suzhou itself has invested heavily in bio technology, particularly with Bio Bay. Self-proclaimed as “dedicated to building twin industrial clusters of biomedicine and nontechnology,” Bio Bay is part

A visit to a dairy farm near Suzhou, and the opening ceremonies at the 2010 World Bioenergy Symposium in Suzhou, were two of the trade mission’s many activities while in China last September.

of the Suzhou Industrial Park. It span 86 hectacres, includes two biological research and development facilities, a nano-tech industrialization base, and residential support, among other traits. With the symposium right in Suzhou, Bio Bay garnered a lot of attention from the attendees. Larson’s strongest take-away from the conference, though,

was the extensive partnership between China and Brazil. “I would say that China and Brazil are ahead of many countries in their working relationship. It seemed like they were off and running,

working on a lot but much of what we heard was just an overview,” she said. In fact, China’s commitment to bio mass ended up being the biggest take-away of Larson’s the entire trip. However, there was another positive outcome, too. The trip ended up being a unique opportunity for all of Minnesota’s agriculture representatives to interact in close quarters and build relationships useful back home. “Ag people in Minnesota really get along well. This is good because in our region, I don’t know very many farmers who, for example, plant wheat that don’t also plant soybeans,” she said. The constant time together throughout the 10-day trip forged relationships and each group got to know the other on a more personal level. Fortunately, that connection has even strengthened since the trip concluded. The Minnesota Soybean Council and the Minnesota Wheat Council are committed to working together by expanding and using both their organization’s resources. This upcoming year, they will be sharing a combine that will harvest both Continued on Page 22

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soybean and wheat test plots. “Sharing equipment and knowledge makes the best sense for the farmer - it’s just good business,” Larson. One of the crops researched is biotech wheat, also a commodity of interest to China. “We talked about it some in China and there was interest.” Particularly, she noted, in stacking. Stacking different traits on each other, like drought tolerance and Fusarium head blight would help ensure a more reliable and higher-yield harvest. “So, we’re excited about that. The National Association of Wheat Growers and U.S. Wheat Associates are all working on it as a whole,” she said. The Pawlenty administration spearheaded these trade trips to China during his time in office, and there’s no guarantee where future administrations

will place emphasis. Larson gave a lot of credit to the former governor for prioritizing the agriculture aspect of the operation, explaining that roughly half of the 2010 delegation represented the industry. “You can tell it’s extremely important to Minnesota,” she said. “It could have been more business or other industries, but ag was half.” Between the positive reactions from Chinese officials, the doors opened for non-ag business, and the bonds strengthened between Minnesota’s ag commodities, a lot of good came from the mission’s goodwill. For Larson, this was a success.

THE FARM SIDE • Top 10 Top 10 things to make you feel better about selling your crops too early 1. Your neighbor is lying, the bin is empty 2. That guy who sold today? That is actually $20 wheat. 3. The market would have never rallied with you selling first, and you enjoy being a martyr. 4. The more you make, the more your wife spends so it makes no difference to you. 5. You look like a genius to your accountant. He can’t figure out how you never have to pay taxes. 6. You can still complain for the rest of the year about “How tough it is to make any money farming.” 7. You are doing you part for a “Cheap Food” policy. 8. Even if you had the wheat today, you wouldn’t sell anyway. You’d sell on the way down, get the same price, but have twice the stress. 9. You don’t have to spend the rest of the year going to marketing meetings. 10. It was your turn.

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Prairie Grains • February 2011

Celebrating Our 10th Anniversary !

International Crop Expo February 16 & 17, 2011 Wednesday, February 16th Dr. Lowell Catlett ~ Int’l Known Economist/Futurist

Thursday, February 17th

Dr. Ron Hanson

You Can Buy the Family Farm... But Remember…I Still Own It February 17, 2011 ~ 1:00 p.m.

Tomorrow’s Agriculture: Six Trends You Can’t Afford to Miss February 16, 2011 ~ 1:30 p.m. Agriculture will change more in the next decade than in the last century. Six major trends are creating more opportunities than ever before as consumers and producers are aligned in ways that generate agricultural markets in medicine ecology, bio security , entertainment and lifestyles. These six trends change all of the rules and will make agriculture the nation’s largest industry.

This session will focus directly on the ‘family issues’ of farm business ownership succession when one generation attempts to pass on the ownership and/or control of their farming operation to the next generation. Dr. Hanson will focus on key elements required for developing a farm business ownership succession strategy by addressing many questions that must be asked in the process.

Dr. Lowell Catlett is a Regent’s Professor/Dean and Chief Administrative Officer at New Mexico State University’s College of Agricultural, Consumer and Environmental Sciences. An exciting futurist, his knowledge of technologies and their implications on the way we will live and work is addressed in his varied and upbeat presentations.

Dr. Ron Hanson serves as the Neal Harlan Professor of Agribusiness at the U of Nebraska-Lincoln. He was raised on an Illinois family farm and has counseled farm families for more than 30 years to help them solve family conflicts in a more positive manner.

Welcome MN / ND Agri-Women Coffee & Dessert Session