AG Mag Central Iowa
Twists & Turns A new farm bill, a trade war, RFS changes, rising oil prices. All are adding to an uncertain path ahead for farmers. PRSRT STD U.S. POSTAGE PAID PERMIT NO. 371 NEWTON, IA 50208 P.O. Box 967 Newton, IA 50208 CHANGE SERVICE REQUESTED
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Summer 2018
AG Mag Central Iowa
Publisher & Advertising Manager Dan Goetz Managing Editor Mike Mendenhall
Index Tumultuous times
Local farmers are caught in the middle of a trade war between the U.S. and China.
Magazine Editor Jeff Rogers Page Design Jeff Rogers Reporters & Photographers David Dolmage Pam Eggemeier Mike Mendenhall Samuel Nusbaum Jamee A. Pierson Anthony Victor Reyes
COVER STORY PAGE 4
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Index
Crisis point
The state’s water quality issue is being addressed by the state. Is it enough?
CENTER PIECE PAGE 10
The chickens being raised by Charles Regnier Jr. are adding color to the Colfax Farmers Market.
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As if low commodity prices weren’t bad enough for local farmers, the cost of diesel fuel is on the rise. 15
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A SURPLUS OF UNCERTAINTY With a bumper crop in sight, Central Iowa farmers hope storm clouds from Washington don’t wash away the gains BY DAVID DOLMAGE AND PAM EGGEMEIER Central Iowa Ag Mag
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arm weather and steady rainfall have Central Iowa farmers looking at a bumper crop this year. But there are storm clouds rolling in from Washington that are obscuring the sunny outlook here. The action in the nation’s capital has been fast and furious as Congress hammers out a new farm bill, the clock ticks in the nation’s escalating trade war with China, concerns mount about the Renewable Fuel Standard, and rising oil prices start to chip away at the bottom line.
The resulting uncertainty comes in the fourth year of what is projected to be a 7-year down cycle for commodities prices. Net farm income has tumbled 40 percent from the highs reached between 2011 and 2014. The fear of proposed tariffs have shoved some commodities prices off a cliff since the first round of President Donald Trump’s tariff proposals was announced on March 22. China retaliated by putting a 25 percent tariff on several agricultural products including soy, corn, pork, wheat and dairy products.
Iowa Democratic gubernatorial candidate Fred Hubbell (left) speaks with Jasper County row crop farmer Mark Tinnimeier on his acreage in July about the effect new tariffs for the Trump administration have on soybean prices and export markets. (Photo by David Dolmage /Central Iowa Ag Mag)
4 Summer 2018
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David Dolmage/Central Iowa Ag Mag
Iowa Gov. Kim Reynolds and U.S. Rep. Dave Loebsack, D-Iowa, greet fans prior to the start of the Iowa Corn 300 on July 9 at Iowa Speedway in Newton. Reynolds, a guest of Iowa Corn, the event’s sponsor, said she’s optimistic that Iowa farmers’ concerns about tariffs will be resolved before the fall harvest season. 4CONTINUED FROM 4 About 61 percent of the U.S. soybeans produced in the 2016-2017 marketing year were sent to China, the world’s largest soy consumer. On the heels of the China announcement, July soybean futures dropped more than 7 percent at one point on June 21. They cratered at $8.145 a bushel in early July, the lowest for soybeans since March 2009. A strong U.S. dollar in the second quarter of this year has also helped take down ag commodity prices. U.S. Rep Dave Loebsack, D-Iowa, said the trade war is another example of the president’s 2x4 approach to diplomacy. “You don’t use a 2x4 to hit them over the head. There are better ways to do this, more constructive ways,” Loebsack said. For now, farmers have been willing to give the president the benefit of the doubt, but Loebsack said he believes that support will begin to erode as Iowans see little to no movement on tariffs with harvest season fast approaching. “The longer he goes on with this approach, the harder it’s going to be for our farmers because prices are not rebounding,” Loebsack said. “They’re
very concerned, they’re very worried. A lot of them want to give him the benefit of the doubt, but they’re afraid.” Iowa Gov. Kim Reynolds said she’s focused on helping farmers find new markets for their product, including pushing for a long-awaited nationwide rollout of E85. President Trump has publicly supported the initiative, and administrators for the Environmental Protection Agency have said the move is possible, but little action has occurred. “We just need to bring some stability to the market,” Reynolds said, during a visit to the Iowa Speedway, where she watched IndyCars powered by E85 in July. “We just need to take some things off the table and start to provide some certainty to a market that’s pretty volatile.” A bill introduced by Loebsack in 2017 would allow the sale of E15 year-round, but it’s failed to gain traction in the House, something Loebsack said needs to change. The bill, co-sponsored by Rep. Adrian Smith, R-Nebraska, will boost corn prices while giving drivers another choice at the pumps. Rep. David Young, R-Iowa, said the move would be a “game-changer” for Iowa farmers, boosting corn prices by as much as 10 percent.
Young, who represents the state’s Third District, said he expects the president to keep the promises he made on the campaign trail two years ago. Farmers in Young’s district have told him they’re still willing to support Trump, but Young said he believes the president will be out of time with Iowa farmers this fall. “I find one out of two, particularly grain producers, are still willing to give the president a little more rope on this, a little more time,” Young said. “How much time? I don’t know. When they’re taking their grain into the co-op and seeing what the prices are, that could be the game changer.” For farmers like Jasper County resident Mark Tinnimeier, hard times are nothing new. Tinnimeier barely survived the farm crisis of the 1980s, declaring bankruptcy in a last-ditch effort to save the 440-acre farm that’s been in his family for generations. With no movement on tariff talks, Tinnimeier feels like the president has abandoned Iowa farmers. “He’s thrown us under the bus as far as I’m concerned,” Tinnimeier said. CONTINUED ON 64 AG Mag
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FARMERS FORUM What surprised you about the 2017 growing and harvest season? What are you anticipating doing different in 2018?
Michael Gannon
Rodney Altes
BY SAMUEL NUSBAUM Central Iowa Ag Mag
Michael Gannon of Colfax “We had a terrible drought, at least in this area, and the yields were exceptional because of the simple fact we went into the planting season with a full reserve of water.” “Nothing, mainly we run a head of 40 Angus cows and calves, done that for years, and corn, soybeans and alfalfa, not really changing anything.”
Rodney Altes of Mingo (retired) “The maximum yields we got out with the dry weather, technology has
4CONTINUED FROM 5 Every year, Tinnimeier contracts to sell a fourth of his grain as soon as he can get a price that’s above production costs. Traditionally a safety net for the for longtime Jasper County farmer, those prices may be the highest he’ll see all year as soybean prices continue to plummet. A veteran of previous trade wars, Tinnimeier said he’s worried tariffs will encourage countries to look at other markets, leaving farmers in the United States behind. “If we’re not a reliable supplier, they’ll go somewhere else,” Tinnimeier said. “Instead of the first choice, we’ll become the last choice.” A block on soybeans in the Chinese market would be a gut punch to Iowa farmers, U.S. Sen. Chuck Grassley, 6 Summer 2018
Bryce Van Ryswyk
helped out a bunch there. That surprised everybody, and now we have surpluses with low prices.” “Hope the prices of grain go up and we have a better year. If they get the tariffs settled and all that kind of stuff, then we will be OK, but we could have a little pain before we get there.”
Bryce Van Ryswyk of Baxter “It surprised me how we are kind of in a drought and the yields were amazing.” “Just try different things out, I think.”
Terry Leonard of Colfax “How dry it was and it still yielded.
R-Iowa, said. Grassley believes the Chinese targeted U.S. agriculture products because it is “our soft spot.” Despite already low pork prices and crashing soybean pricSen. Chuck es, he remains optimistic Grassley for a resolution to be negotiated. “There’s already evidence it might be going in the right direction, from the fact that China is lowering its tariffs on cars,” Grassley said. “But, if it doesn’t work out the way the president plans it to work out, it could be catastrophic for agriculture.” Iowa is among the top three exporters of soybeans to China, and local farmers, already operating below cost, are preparing for the worst. Pottawatomie County farmer Kevin
Terry Leonard
Brock Hansen
We had enough subsoil moisture to carry us through.” “I don’t know if I want to do anything different.”
Brock Hansen of Baxter “Probably the overall quality of the crop, excellent test fleet, excellent crop. It was pretty much another banner year with the 2017 crop.” “Obviously, trying to tighten out budgets because of the current economy. The grain market prices have dwindled down since the 2017 crop market year. As far as doing anything differently, we haven’t changed a lot of our farming practices, we are continually educating ourselves on cover crops.”
Ross said he believes the president needs to be doing more to help farmers, many of whom are expecting a bumper crop this year, Ross said it’s imperative growers and producers look for new places to market corn. A veteran of numerous trade missions, Ross is concerned with the president’s approach. “It’s challenging to see some of the discussions that have gone on. Hopefully, there’s no long-term damage in the relationships that have been built, but it’s tough for a lot of farmers,” Ross said. Expanding the nationwide use of E15 year-round would help Iowa farmers, and Ross said he’s angry it hasn’t happened yet. “It’s something that should’ve happened years ago,” Ross said. “I’ve been to D.C. lobbying on it so many times, it’s ridiculous.”
Downloading farming’s future Tech taking more prevalent role on modern U.S. farm BY SAMUEL NUSBAUM For Central Iowa Ag Mag
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rock Hansen is a farmer living in Baxter. Also the town’s fire chief and owner of Hansen Ag Services, he’s been in the repair business for 12 to 13 years. Hansen said there are new developments and advances in farm technology every day, which can range from auto-steering features for tractors to mapping and planning software. There is even a way to retrofit older equipment with newer technology, so they can be as efficient as their newer cousins. One important tool for the modern farmer might bit of a surprise for those not accustomed to farm life – drone tech. Hansen said he does not own any drones, but knows farmers who do. They use the smart device-controlled drones to fly over fields to map everything from topography to soil types. “We used it just recently in a flooding application,” Hansen said. “A farm flooded, and we wanted to see how much debris went onto the farm and how much damage was done. We could not have walked to that to see, it would have been too dangerous to go there.” Used by fire and rescue teams to news media, Hansen said, drones are a tool with many different applications. Specific uses include crop scouting, proper farm drainage and disease monitoring in the crop field grid. Real estate companies, Hansen said, are also using drones to take photos of farm properties to entice potential buyers. “[There are] Endless opportunities for what you can use them for, and I think
Samuel Nusbaum/Central Iowa Ag Mag
The drone used by Miles McGovney sits on a conference room table at Beck’s Hybrids in Colfax. New technology and tools, like the drone, are changing the face of farming. the prices are coming down to where they are a little more reasonable now. And, like I said, it is another tool in your tool box,” Hansen said. Miles McGovney, the practical farm agronomist at Beck’s Hybrids in Colfax, works with new and upcoming technologies and chemicals such as different fertilizers and fungicides. He said a majority of farms are using GPS to navigate their farm equipment as a way to get straighter rows and decrease fatigue for the farmer. “There are starting to be more farmers that are using precision style technology, so whether that is an attachment which they put on a piece of equipment they already have, or using a database to analyze the data they are already bringing into the farm with the technology they already have,” McGovney said. Beck’s, he said, also has a drone at its facility it uses for scouting. “Especially when you are walking through corn which
is 8 to 10 feet tall, it’s hard to see a couple feet in front of you,” McGovney said. He said there are newer technologies with drones or other types of unmanned air vehicles to create Normalized Difference Vegetation Index and infrared maps to get a clearer picture of how the crops are doing in terms of nutrient and water. The farm has become more and more tech friendly over the past three decades. Both McGovney and Hansen said smartphone apps are now prevalent on the farm, focusing
on weather, plant and wildlife recognition, work schedules with tasks specific to the day, and to keep track of various markets. This type of smart-tech is not new in the ag industry, but until the past decade, it’s been too expensive for the average farmer to acquire and implement. “If you would have asked me maybe 10 years ago if I was going to be using iPads or laptops or even drones as part of scouting or just helping someone farm, I would have thought you were crazy,” McGovney said.
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Some really good eggs Colfax poultryman adds some color to farmers market BY ANTHONY VICTOR REYES For Central Iowa Ag Mag
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sk any farm kid, freshly hatched eggs are always better. Whether scrambled, sunny-side up or hard-boiled, once you get past the hard shell, many chicken farmers say an egg fresh from a hen will cook better, be healthier for you, and – most importantly – taste better. If you happen to stumble into Colfax on a Tuesday evening, you will have a chance to pick-up some freshly hatched eggs from Charles Regnier Jr. at the local farmers market. CONTINUED ON 94
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4CONTINUED FROM 8 Not only will they be freshly hatched, they’ll come in shades of purple, pink and brown. “More colors are better than just having all one color chicken. I bought 10, they shipped me 12. I still have all 12,” Regnier said. “I don’t have any white egg layers. My six Easter eggers can lay blue, pink, olive-colored – anything in the blue spectrum they can lay.” Since he was a young boy living in Prairie City, Regnier enjoyed doing farm work. He would help his grandfather raise the hogs, bail hay and butcher turkeys. In October, Regnier decided to raise some chickens on his family’s property in Colfax. After purchasing a small chicken coup, a couple yards of chicken fence, 12 chickens and a lot of hay and feed, the Prairie City native has been watching over his feathered friends, making sure they are happy, full and comfortable. Now, he is up to 32 chickens, filling two coups. From silver-laced wyandottes to Easter eggers, Regnier’s little operation will soon be producing about 24 eggs a day, varying in color from the traditional brown to sky blue. “The eggs are really good,” Reg-
Anthony Victor Reyes/Central Iowa Ag Mag
Charles Regnier Jr. started with 12 chickens. Today, Regnier raises 32 chickens. ON PAGE 8: Regnier feeds his chickens some grass at his home in Colfax. From silver-laced wyandottes to Easter eggers, the Colfax chicken farmer has been raising chickens since October. nier said. “I don’t have whole lot of extra eggs. From what we eat to what my sisters take, everything else goes to the farmers market. That could be two dozen. That could three dozen. That could be five dozen. It just depends. ... There are some days they lay 12. There are some days they lay nine. Some hens don’t lay eggs every day.” Regnier said he has enjoyed raising chickens the past few months. He said since chickens require a low amount of
maintenance, he is able to simply enjoy their company. From showing off the birds to his 6-year-old nephew to sharing a melon with the fowls on hot, summer days, Regnier said there is no better way to spend your day than watching the chickens. “They are silly to watch. They do stupid things,” Regnier said. “You have to be around them to understand it. Once you get chickens, you get more chickens. ... I have a black lab, and the rooster ran clear up to the edge of the fence. His feathers up and his wings down. He was ready to attack. I said, ‘Dude, he is going to mess you up.’” The Colfax Farmers Market, which will end Sept. 25, is held from 4:30 to 6:30 p.m. every Tuesday, weather permitting, in downtown Colfax. Regnier said if you haven’t had freshly hatched eggs before, he recommends you stop by and try your luck in picking up a dozen of the colorful eggs. He said you will definitely not regret it. “Get a glass of water and put a store egg in there. If it floats, it is probably 3 weeks old or older. My eggs are a day or two old. They’ll sink to the bottom,” Regnier said. “They make some good egg sandwiches.” For more information, call 515-6816414 or join the Colfax Farmers Market group on Facebook.
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WATER QUALITY CRISIS Are the latest steps to improve Iowa waterways enough?
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BY MIKE MENDENHALL For Central Iowa Ag Mag
ackhoes and dump trucks from Leffler Dirtworks were deep into the lake bed at Mariposa County Park in February, fighting frozen soil and standing water in freezing temperatures. The workers were contracted by the Jasper County Conservation Board to dredge Mariposa Lake, part of a bigger water quality protection plan for the Mariposa Watershed, located six miles northeast of Newton. Before the dredging is done in September, about 146,000 cubic yards or 10,000 dump-truck loads of dirt will be removed from the lake that attracts 17,000 visitors per year. In many ways, Mariposa Lake is an analogy for Iowa’s statewide water quality crisis. For more than five decades, large amounts of sediment runoff has been entering the lake from adjacent soybean and corn fields in the watershed, decreasing both its surface area and depth. Phosphorus, a chemical fertilizer attached to the sediment, has caused algae blooms and is a major contributor to the lake’s poor water quality. nnn The lake was included on the Iowa Department of Natural Resources list of impaired waters in 2002. In the 580-acre Mariposa Watershed, 66 percent of the land is dedicated to row crop production. The Jasper County Conservation Board manages 22 percent of the watershed as a park, with the remaining 12 percent made up of permanent grass, pasture, farmsteads and roads. IDNR data compiled in May 2004 breaks the problem down by the numbers. Mariposa sees 1,143 tons of sediment per year entering the lake due to soil erosion. Phosphorus is entering the lake at 1,760 pounds per year. 10 Summer 2018
TOP: Quarry Springs Park in Colfax is seen overhead in 2014. The 280-acres of lake in the city park is spring-fed and a former gravel quarry. A bill signed into law by Iowa Gov. Kim Reynolds in January redirects $282 million in funds to promote water quality initiatives in the state. BOTTOM: Backhoes, skid loaders and dump-trucks dredge Mariposa Lake on Feb. 14. The work is part of a large water quality protection plan underway in the Mariposa Watershed located six miles northeast of Newton.
The goal of all this work is to reduce the annual internal contribution of phosphorous in the watershed by 80 percent and drop the delivery of sediment into the lake by 75 percent. The IDNR’s study showed the sedimentation in Mariposa Lake is predominately agricultural in origin and directly related to the watershed’s ratio of farmland to lake. The numbers from Mariposa are a typical story in many of Iowa’s waterways. Nitrate and phosphorus runoff from farm fields endanger aquatic habitat, and experts say topsoil loss will hurt Iowa crop yields and field viability. A debate has been raging for years between Iowa farmers, Ag industry lobbyists, environmentalists and lawmakers on who’s to blame and what to do about it.
Statewide developments In the case of Mariposa, Jasper County Conservation is drawing from various funding sources to help implement filter strips, grassed waterways, terraces and grade stabilization’s structures on the watershed’s cropland and reinforce a variable water level wetland, among other practices. At the state level, lawmakers are finally giving farmers financial incentive to implement the 15-year-old nutrient reduction strategy, started by former Gov. Terry Branstad, in the form of a $282 million water quality bill passed by the Legislature. It was the first bill signed into law by Gov. Kim Reynolds in the 2018 legislative session. The biggest impact from the water quality law will be long-awaited funding for soil management practices. The law will provide $156 million over the next 12 years for cover crops, buffer zones and bioreactors – techniques that experts like Prairie City grain producer Gordon Wassenaar say will reduce nitrate and phosphorus runoff into waterways and slow topsoil loss. Wassenaar farms a large row crop acreage south of Prairie City and was an early adopter of cover crops and no-till farming. Wassenaar has partnered with Jasper County NRCS for the past several years to host a biannual cover crop day on his farm to educate local farmers about the soil health benefits of cover crops. In April 2017, Wassenaar filled a vacancy on Jasper County’s NRCS board. He sees the new water quality law as a good step, but with one big caveat – the law doesn’t provide funding for NRCS groups to hire administrative staff to provide oversight and guidance for farmers wanting to implement practices outlined in the Nutrient Reduction Strategy. “As a farmer, I’m glad to see money coming, but as a board member we have to manage it,” Wassenaar said. “[Jasper County NRCS Director] Curt [Donahue] had some retirements. The state hiring freeze leaves Curt on the shorthanded side.” Although funding will be available for farmers to buy cover crops and install buffers and terrace, Wassenaar said, they will need education on how to plant and remove cover crops and design the buffer and terrace systems. He said this could be difficult for NRCS at current staffing levels. Under the voluntary Nutrient Reduction Strategy, only 625,000 of Iowa’s 25.9 million cropland acres utilized cover crops. Wassenaar said cover crops not only protect topsoil from runoff caused by precipitation between harvests, it also absorbs much of the excess nitrate and phosphorus left in the fields after the corn and soybeans are removed, keeping it out of the rivers, lakes and streams. CONTINUED ON 124
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4CONTINUED FROM 11 Wassenaar said it was soil erosion, not water quality, that sparked him to implement cover crops. But the practice benefits both. The Prairie City farmer now loses less topsoil in 10 years than he did in one year before cover crops. Experts also point to overall soil health as a reason to use cover crops. According to the NRCS, cover crops have been shown to raise the percentage of organic matter in topsoil, increasing the ground’s water holding capacGordon Wassenaar ity. “We have a soil that is very productive but needs protection. Everything starts on the farms and everything finds its way to town. When agriculture takes a dive, it will make its way to town. We need [urban consumers] and they need us,” Wassenaar said.
Politics of water quality The new law will also create a Water Quality Financial Assistance Fund managed by the state treasurer’s office. A portion of existing tax money from metered drinking water that goes into Iowa’s general fund and school infrastructure will be rerouted into the new program, targeting cities and water utility projects. Some of the money will be awarded through the Iowa Finance Authority to communities to improve existing or install new wastewater treatment facilities. The law will also direct funds toward ground and surface water improvement projects. Critics of the legislation say the bill should have called for new money to address these problems, as opposed to redistributing existing money from other areas of the budget. Both Gov. Reynolds and Democratic gubernatorial candidate Fred Hubbell spoke about the water quality push in separate January visits to Newton. Reynolds touted it as a victory and serious step in addressing the state’s water quality issue. Hubbell thinks that the bill initially proposed in the Iowa House was a better – but still imperfect – option than the final version. During a Newton campaign stop in January, Hubbell said he doesn’t think the legislation will help water quality and will only divert money from education and health care programs. He said he would have vetoed the bill. “Water quality is a big problem in our state that needs a permenant solution, not a temporary solution,” Hubbell said. “The House bill was a better bill because it had watershed involvement and it had some monitoring, which are both very important. But, again, it wasn’t big enough.”
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Patrick Chase, a National Resource Conservation Service soil scientist at the Newton USDA Service Center, speaks at the Prairie City farm of Gordon Wassenaar during a cover crop field day in November 2016.. Wassenaar hosts field days annually to demonstrate how active, health biology in top soil can better withstand erosion caused by water.
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‘MY LITTLE PIECE OF HEAVEN’
David Dolmage/Central Iowa Ag Mag
Natalie Harding walks her farm in rural Colfax with her grandson and German Shepherds. BELOW: Harding holds one of the German Shepherd puppies.
Colfax farmer finds her niche with barn full of animals
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BY DAVID DOLMAGE For Central Iowa Ag Mag
alking across her farm one summer morning – German Shepherds at her side – Natalie Harding turns to look behind her at the view of her farm, which she shares with her husband, Jeff. “This is my little piece of heaven right here,” Natalie says. Spread across eight acres, with a rambling farmhouse smack dab in the middle, the Hardings’ farm is a menagerie of animals. In addition to the prize-winning German Shepherds, there are barns and outbuildings full of goats, sheep, turkeys, geese, chickens, horses and even peacocks that have found a home. Her father, a retired cattle farmer, lives down the road. Together they
maintain a one-acre garden she uses to keep her family fed year-round. At any given moment, there are four generations of Hardings working side by side in the garden, a point of pride for Natalie. The Hardings have called their farm in Colfax home since 2014. They’d been renting a farm nearby, but when a friend called to let her know this property had come up for sale, they didn’t’ hesitate to pull the trigger. Natalie called on a Friday, saw the property on Saturday, and by Monday it was theirs. The quiet tranquility of the farm is what attracted her to the property, and four years later, she’s just as happy as the day she moved in. CONTINUED ON 14 AG Mag
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David Dolmage/Central Iowa Ag Mag
Harding sells the puppies for $1,000 each, and there’s already a waiting list for the litter she’s expecting this year. 4CONTINUED FROM 13 “We came right down this road, and when I saw it, I thought – this is perfect, just the size I need,” Natalie said. The farm seemed like the ideal place for Natalie to raise puppies. With each dog priced at $1,000, Harding already has a waiting list for the litter she’s expecting this year. Sheena Rosa, who lives in Huxley, bought a puppy from Natalie last year. Her communication skills and her hands-on approach set Natalie apart from other breeders, Rosa said. “She really loves her dogs, and you can tell that she really, really cares about the animals,” Rosa said. “I know it’s a lot of hard work for her, but she makes it look really easy.” Unlike many breeders, Natalie encouraged Rosa and her husband to come out and spend time with the puppies, even after they’d decided which dog was right for them. That made it easier for Rosa to feel comfortable with the process. “We saw him online, and we bonded with him right away. We were grateful to have that experience,” Rosa said. “She let us be there as long as we wanted, to interact with them and see if we had a connection with them.” Even after finding Toro, their puppy, 14 Summer 2018
Rosa and Natalie have stayed close, with Rosa bringing Toro back often to visit his mother. “She puts a lot of thought and care into taking care of the puppies. She’s very open to having anyone come out to her house and visit the puppies,” Rosa said. Born on a farm, Natalie can’t imagine living anywhere else. Other than a brief stint in a townhouse following a divorce, she’s always lived on a farm. Even when the days get long, she can’t imagine doing anything else. In addition to taking care of the animals she raises, Natalie also provides day care for her grandson, in addition to teaching several classes at Newton’s DMACC campus. A licensed Early Childhood Education and Addiction Specialist, Natalie is working on her PhD in between teaching. Mornings start early for Natalie. She’s usually up by 6 a.m. to check on her animals and walk her dogs first thing. Every day, there’s plenty to do, from canning to gardening, homework and taking care of her grandchildren. She also maintains two Facebook pages – Corner Creek Acres, for the farm, and Zeus and Sasha, a page for the German Shepherd puppies she breeds. Before bed, she’ll make one last check to make
sure all of her animals are in safely for the night. She’s had to fend off coyotes on occasion. “I shoot ‘em with a couple of high powered rifles,” Natalie said. Despite the challenges, Natalie still swears there’s plenty of charm to her frontier life. With more and more Americans becoming interested in rural living, Natalie said she envies how easy it is to get started with a small farm like hers these days. Before the internet, Natalie said she learned to ask as many questions as she could when she was first starting out. “People getting into this now are lucky, because you have YouTube videos and Google. When I started, we didn’t have that,” Harding said. “I had to go two miles down the road to talk to the old farmer at his kitchen table.” With years of practice, the Hardings are very nearly self sufficient. All of the meat they eat comes from animals they’ve raised, or from deer her husband has hunted. The family’s vegetable garden, combined with copious amounts of canning, means Harding needs to buy only a few things when she heads into the store. “I’ve always been at home in the country,” Harding said.
FEELING THE SQUEEZE? Fuel prices are rising, but Central Iowa farmers take it in stride What Can
BY JAMEE A. PIERSON AND PAM EGGEMEIER For Central Iowa Ag Mag
R
ising fuel costs could make it more expensive for farmers to harvest their crops this year. Oil prices have been up by as much as 20 percent in 2018 on pressures from rising global demand and dwindling supply. That means the cost of diesel fuel, which powers harvest season, is also soaring. Farmers use diesel for equipment and
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transporting their yields. In May, diesel reached its highest price in 4 years. Like agriculture commodities, oil prices have been in a downward spiral for nearly 5 years. The silver lining for farmers in higher oil prices is that oil and ag commodities prices generally move in tandem, perhaps a sign that crop prices have bottomed. CONTINUED ON 164
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“We’re looking at a lot of things. Just inputs, in general, are increasing at a faster rate than the markets are. The markets are showing the same thing. In the end, that doesn’t make for a very profitable occupation.”
4CONTINUED FROM 15 Historically, oil prices peak in early summer, but this year political tensions have added to supply uncertainties, sending prices soaring in June. The Organization of Petroleum Exporting Countries and several other countries, including Russia, had agreed in January 2017 to cut production. The reduction, amounting to about 2 percent of global supply, was instituted to address oversupply. Increased global demand has eaten through supplies and several factors have conspired to make it difficult to ramp up production. Since President Donald Trump pulled the U.S. out of an international agreement to curb Iran’s nuclear program, the U.S. has called for its allies to stop importing Iranian crude by November. Complicating matters, production in Iraq and Venezuela has been slower than expected and a large oil-sands field in Canada has been shut down indefinitely. Iran exports about 2.4 million barrels a day of crude. Analysts estimate that anywhere between 400,000 to a 1 million barrels could be at risk once sanctions are reinstated in November. Saudi Arabia, the world’s largest exporter of crude, said it would soon raise its production from 10.8 million to 11 million barrels a day. To help meet demand, OPEC announced on June 22 that its producers would increase output to 1 million barrels a day. The cartel’s conviction was questioned, however, and the day closed with the biggest single-day increase in oil prices since November 2016. U.S. crude climbed nearly 5 percent to $68.72 a barrel and Brent crude, the international benchmark, hit a high of $74.84. Then on June 27, the U.S. Energy Information Administration reported that crude supplies were down by 9.9 million barrels for the week ending June 22 – the largest weekly decline so far this year. U.S. crude was up 3.2 percent on the news, settling at $72.76 a barrel – the highest price since November 2014. Brent crude climbed to $77.62 a barrel. While the increase is never welcomed by local farmers, most take it in stride among the vast amount of variables in everyday operations. “We’re looking at a lot of things,” Prairie City area farmer Luke Wilson said. “Just inputs, in general, are increasing at a faster rate than the markets are. The markets are showing the same thing. In the end, that doesn’t make for a very profitable occupation.” Wilson said everybody, whether a 16 Summer 2018
Luke Wilson
Prairie City area farmer
U.S. crude prices
The annual average first purchase price per barrel for U.S. crude oil: 2000..................................... $26.72 2001..................................... $21.84 2002..................................... $22.51 2003..................................... $27.56 2004..................................... $36.77 2005..................................... $50.28 2006..................................... $59.69 2007..................................... $66.52 2008..................................... $94.04 2009..................................... $56.35 2010..................................... $74.71 2011..................................... $95.73 2012..................................... $94.52 2013..................................... $95.99 2014..................................... $87.39 2015..................................... $44.39 2016..................................... $38.29 2017..................................... $48.05 June 27, 2018....................... $72.76 Source: U.S. Energy Information Administration farmer or not, is dependent upon fuel and the rising prices are a concern, but overall the increase with the inputs is more of a red flag. “If you work in agriculture, you’re used to riding a roller coaster,” Wilson said. “Fuel costs have been higher in the past, we’re not exactly at the highest levels that have been.” Adapting to the changing rates and weathering the highs and lows in agriculture is a part of the business, Wilson said. Marion County farmer Jim Van Zee agrees that you can’t change your entire process to match cyclical changes in the industry. “It doesn’t really affect me in my deci-
sion making. You have to do what you have to do,” Van Zee said. “There are up and downs, and usually what goes around comes around.” According to the Farm Bureau, the past 5 years have had farmers on rocky ground. After first exceeding the $3.75 per gallon mark and pushing close to $4 per gallon, diesel prices hit a 5-year low of $1.98 per gallon in February 2016. Since falling below $2, prices have steadily increased and have averaged a price of $3.15 since May of this year. Farmers use diesel for equipment and transporting their yields. It’s just another concern for farmers already anxious about falling grain prices. “Just looking at how high diesel has gone in one year, the numbers are actually what I would consider eye popping,” said Dan McTeague, senior petroleum analyst for Gas Buddy. Diesel prices just before the July 4 holiday were Dan $3.13, a 77 cent increase McTeague from the same time last year. “Many people may not recognize this,” McTeague said, “but these kind of price differentials show up not just at the pumps, but also at the grocery checkout. It does affect pricing for just about everything. When it costs a lot more to transport, to plant and to take the crops off, you’re going to be paying a lot more for things down the road.” Midwest farmers do find some relief, the Farm Bureau said, coming in about 6 cents per gallon lower than those on the East Coast and Gulf Coast regions. That number is magnified when accounting for West Coast prices, which average a staggering 40 center per gallon higher. Even though the increases aren’t as steep locally, farmers still feel the effect both directly through fuel prices and the domino effect on input costs. While local producers are definitely watching the markets, they are continuing with their overall plans determined for their farms.
Attention to detail
David Dolmage/Central Iowa Ag Mag
Baxter High School Agricultural Mechanics teacher Wade Boehm poses for a photo with a group of his students in the high school’s shop area.
‘You need to get all your measurements right’: Students in Baxter ag mechanics class learn to do their work well
L
BY DAVID DOLMAGE For Central Iowa Ag Mag
ocated just across the street from Baxter High School, the district’s FFA headquarters is a bustling hub of activity. Students in teacher Wade Boehm’s agricultural mechanics class are putting the finishing touches on the projects they’ve been working on
all semester. Boehm preaches a DIY aesthetic to students, teaching them the basics of cutting and welding metal. He’s hoping to give students like junior Andrew Esqueda the confidence to tackle similar projects outside of the classroom. “I want them to have to these skills in their back pocket,” Boehm said.
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Initially, Esqueda had planned to make an end table, but with a young nephew at home, he converted his design into a shop table. The finished table, which measures 48” x 42” is something he and his father will use as a welding table. CONTINUED ON 184
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4CONTINUED FROM 17 Learning how to make the table in Boehm’s agricultural mechanics class has given Esqueda the confidence to start using the equipment his father has at home. “My dad has a plasma cutter and a welder at home, but I never knew how to use it,” Esqueda said. “I’d never welded before.” For students like Esqueda, who haven’t welded before, learning can be an intimidating process. On the first day of class, Esqueda was amazed as he looked at all of the welds shown on a poster above the tool rack in the shop – he’d never realized there were so many different welds. Before students can get started on their projects in the shop, they have to figure out exactly what they’re going to build. Boehm has each student create a blueprint for their project, he wants to make sure they’ve thought the project through before they break out the plasma cutters and welding torches. “We implemented the drafting process
“When you give these kids high standards, they usually find out their projects turn out better than they thought it would. Hearing students say ‘good enough for government work’ is my least favorite thing.” Wade Boehm
Baxter High School agriculture mechanics teacher
this year because I think that’s a big part of the project,” Boehm said. Like Esqueda, classmate Noah Brindle, a sophomore, built a table as well. At home on their farm near Baxter, Brindle and his father have a shop table in use already, but Brindle’s table will more than double the available counter space. Even though Brindle already knew how to weld, the class taught him the basics of MIG welding, something he’d never done. Building the table taught Brindle the importance of careful measuring. Creating the blueprints for his design was one of the sophomore’s favorite parts of the project. “It was tough getting all the measurements right,” Brindle said. “You need to
measure perfectly.” Boehm’s goal is to give students a basic foundation. He wants them to have an understanding of what it takes to design and build a project, from start to finish. If students are interested in welding, it’ll open the door to allow them to pursue classes at DMACC while they’re still in high school. Even if they aren’t focused on getting a welding degree, Boehm said he hopes the class will at least help them figure out what they want to do. “There’s nothing worse than getting to college and not knowing what you want to do,” Boehm said. CONTINUED ON 194
David Dolmage/Central Iowa Ag Mag
Andrew Esqueda, a junior at Baxter High School, shows off the welding table he made during teacher Wade Boehm’s agricultural mechanics class. In a class that lasts a semester, students learn to design and build projects, learning how to cut and weld metal to create a finished product. 18 Summer 2018
Baxter High School sophomore Noah Brindle stands with the shop table he built during Baxter’s agricultural mechanics class this semester. Each student works on a semester-long project in Wade Boehm’s class. Building the table taught Brindle the importance of careful measuring. Creating the blueprints for his design was one of the sophomore’s favorite parts of the project. (Photos by David Dolmage/Central Iowa Ag Mag)
4CONTINUED FROM 18 While many of Boehm’s students come from an agricultural background, only a few came to the class with previous welding experience. The hands-on approach Boehm advocates is to give his students the same skills he learned in high school, practicing his welding skills by welding cultivator buckets together with his father. “These are things they don’t always get at home. It’s stuff I took for granted as a kid,” Boehm said. Even though these projects might be the first for many of his students, Boehm insists on holding his students to a high standard. Students have learned not to say “it’s good enough” in Boehm’s class, as he insists
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“When you give these kids high standards, they usually find out their projects turn out better than they thought it would,” Boehm said. “Hearing students say ‘good enough for government
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