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CONTENTS

JULY 2014

BUSINESS 8

GROW FROM WITHIN

10

OUR SHARE KEEPS FALLING

14

THE WIDE VIEW

20

ON THE JOB

24

WHERE TO NEXT?

28

A NEW FARM THAT BUZZES

32

THEIR OWN PATH

35

GUIDE LEGAL — WHEN BUSINESSMEN BECOME DIRECTORS

36

THE FUTURE OF FUTURES

40

THE GOAL IS GOUDA

43

THE RIGHT TOOL AT THE RIGHT TIME

62

GUIDE LIFE — SET THEM UP FOR SUCCESS

When the big firms go headhunting, they rarely get good value from their new stars. Here’s why that matters on the farm.

Grain and oilseed prices are dropping, but food prices keep rising. And, says Gerald Pilger, farmers keep getting blamed!

Just outside Calgary, CL Ranches is winning the consumer battles that all of agriculture will soon face.

Can agriculture compete for employees against the oilpatch and other industries? Our Lisa Guenther asks the workers.

Somebody is always trying to sell you on their view of the future of agriculture. Hmmm… could they be right?

Eight years ago, Dragonfly Farm struggled to get off the ground.

Now it’s working toward $1 million in annual sales.

For this Quebec startup, farming success started when they developed their own, unique sense of direction.

If your farm is incorporated, are you sure you are meeting your legal obligations?

Just because you can produce commodities in huge quantities doesn’t mean that the market infrastructure will fall into place.

64 66

SEE CENTRE

Diversification gets touted as a cure-all, but this successful value-adding family says it takes grit, more grit, and more grit again.

While our machinery makers eye overseas markets, Germany’s Lemken is racking up more sales in Canada.

Two things are certain. Life for tomorrow’s farmers will be a challenge. But you can prepare your kids for success.

EVERY ISSUE 5

This summer, COUNTRY GUIDE signed on as official media sponsor for the World Congress on Conservation Agriculture in Winnipeg. With farmers and experts from 33 countries, the insights were amazing and inspiring, as our team of journalists reports in this special section.

MACHINERY GUIDE

Mid-size tractors evolve with a wave of new engineering.

PRODUCTION 46

THE PATH TO BIGGER WHEAT YIELDS

50

ANOTHER STORY ON CANADA FLEABANE?

52

IN SEARCH OF A GOOD LABEL

54

PEST PATROL

GUIDE HEALTH

Manage your heart medications for better health.

HANSON ACRES When the Chinese farmers arrive on tour, they get an eyeful.

Genetics and crop protection play a role, but on most farms, the biggest yield response will come from sharper management.

Yes, it’s another story, because the message isn’t getting through and resistant fleabane is still spreading.

Canada needs pesticide labels that work for farmers (which means a total overhaul is needed).

There are options for tufted vetch in soybeans, but your best bet is to stay tuned to new research.

Our commitment to your privacy At Farm Business Communications we have a firm commitment to protecting your privacy and security as our customer. Farm Business Communications will only collect personal information if it is required for the proper functioning of our business. As part of our commitment to enhance customer service, we may share this personal information with other strategic business partners. For more information regarding our Customer Information Privacy Policy, write to: Information Protection Officer, Farm Business Communications, 1666 Dublin Avenue, Winnipeg, MB R3H 0H1.

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J U LY 2 0 1 4

country-guide.ca 3

desk EDITORIAL STAFF Editor: Tom Button 12827 Klondyke Line, Ridgetown, ON N0P 2C0 (519) 674-1449 Fax (519) 674-5229 Email: tom.button@fbcpublishing.com Associate Editors: Maggie Van Camp Fax (905) 986-9991 (905) 986-5342 Email: bmvancamp@fbcpublishing.com Gord Gilmour (204) 453-7624 Cell: (204) 294-9195 Fax (204) 942-8463 Email: gord.gilmour@fbcpublishing.com Production Editor: Ralph Pearce (226) 448-4351 Email: ralph.pearce@fbcpublishing.com ADVERTISING SALES Lillie Ann Morris (905) 838-2826 Email: lamorris@xplornet.com Dan Kuchma Cell (204) 290-5419 (204) 944-5560 Email: dan.kuchma@fbcpublishing.com

Tom Button is editor of Country Guide magazine

The bull is only sleeping As Country Guide market columnist Errol Anderson (who returns next month) always is sure to remind us, commodity markets trade more on emotion than on fundamentals.

Markets climb on a combination of confidence and optimism — and maybe a touch of greed — and they fall on fear.

The same emotions drive the same cycles, time and again. They always have, and they probably always will.

But that isn’t to say that fundamentals have no role at all.

The truth is, the world’s supply and demand of grains and oilseeds — and increasingly its supply and demand of meat as well — are in precarious balance.

It’s why we’ve been reading so many headlines that say either that the sky is falling, or that the sun will shine merrily down on farmers forever.

In the recent past, I’ve read that within 10 years, the world will safely be able to idle a chunk of farmland the size of France. Of course, I’ve also read myriad reasons why humanity is on its inescapable way to famine.

It’s why this month we sent associate editor Gord Gilmour out on assignment to ask whether there is any rationale for deciding which forecasts we should listen to. Does anyone really know which forecasters have the best records?

We knew it wasn’t the kind of question we should expect a definitive answer to, but sometimes our job is just to ask the 4 country-guide.ca

questions anyway and to try to listen for the interesting insights that bubble to the surface. Not surprisingly, though, in this case the answers that Gord got from some of Canada’s brightest ag economists are mainly that long-term forecasting simply doesn’t work in agriculture.

It doesn’t mean that the question wasn’t worth asking. Read Gord’s story and you’ll find out why, but it’s related to the fact that farmers can’t escape having to predict the future. How else could you decide when it makes sense to invest, and when it doesn’t?

So in the context of that story, yes, we agree it’s reasonable to predict we’re heading into a stretch of $4 corn. But it’s more reasonable to predict it than to expect it.

With El Niño, and with the prospects of political strife in critical regions around the world, and with climate change, and with burgeoning global populations, and with the rise of the global middle class, and with our dependence on ethanol, and with… Well, you get the picture.

Maybe the bears will retain control for a year, or for two. Or maybe for only another month. But the bull will wake up.

Let me know what you think at tom. buton@fbcpublishing.com. But what I think is that our farmers are well positioned.

Their financial resources and their management capabilities are higher than ever.

They can wait for demand to return, as it surely will. The world needs its farmers, and will soon remember why.

Head Office: 1666 Dublin Ave., Winnipeg, MB R3H 0H1 (204) 944-5765 Fax (204) 944-5562 Advertising Services Co-ordinator: Sharon Komoski Fax (204) 944-5562 (204) 944-5758 Email: ads@fbcpublishing.com Designer: Jenelle Jensen Publisher: Lynda Tityk Email: lynda.tityk@fbcpublishing.com Associate Publisher/Editorial Director: John Morriss Email: john.morriss@fbcpublishing.com Production Director: Shawna Gibson Email: shawna@fbcpublishing.com Circulation Manager: Heather Anderson Email: heather@fbcpublishing.com President: Bob Willcox Glacier FarmMedia Email: bwillcox@farmmedia.com Contents of this publication are copyrighted and may be reproduced only with the permission of the editor. Country Guide, incorporating the Nor’West Farmer and Farm & Home, is published by Farm Business Communications. Head office: Winnipeg, Manitoba. Printed by Transcontinental LGMC. C o u n t r y G u i d e is published 13 times per year by Farm Business Communications. Subscription rates in Canada — Farmer $39 for one year, $58 for 2 years, $83 for 3 years. (Prices include GST) U.S. subscription rate — $35 (U.S. funds). Subscription rate outside Canada and U.S. — $50 per year. Single copies: $3.50.

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Call toll-free 1-800-665-1362 or email: subscription@fbcpublishing.com U.S. subscribers call 1-204-944-5766 Country Guide is printed with linseed oil-based inks PRINTED IN CANADA Vol. 133 No. 9 Internet address: www.agcanada.com

ISSN 1915-8491 The editors and journalists who write, contribute and provide opinions to Country Guide and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis. However, the editors, journalists, Country Guide and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as Country Guide and Farm Business Communications assume no responsibility for any actions or decisions taken by any reader for this publication based on any and all information provided.

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Machinery

By Ralph Pearce, CG Production Editor

In an era when everything seems to be getting bigger, equipment manufacturers are investing heavily in updating and upgrading the middle of the pack. These are tractors in the 220- to 325-horsepower category, which means they’re big enough to haul and to load, and to dig into most of the toughest jobs on the farm, yet small enough for impressive efficiency, ease of operation and manoeuvrability. These tractors get it done, including some with Tier 4B/Final emissions standards, and the lineup also includes models with newly expanded interiors, refined engine specs, and an impressive list of state-of-the-art options. If you haven’t taken a hard look for a year or two, you’ve got your work cut out for you. But it’s work that will pay off.

John Deere 7R Series  John Deere has added four new 7R Series models to your mid-size choices, and all offer high-power density with a high-horsepower rating. Starting with the 230R and its 230-horsepower engine, look for a hitch-lift capacity of up to 15,200 lbs. and drawbar capacity of up to 10,000 lbs. Plus there’s your choice of CommandQuad, Infinitely Variable Transmission or the new e23 power shift transmission. There’s also

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an integrated front three-point hitch with PTO options, providing more diversity to attach a mower conditioner or other implements. Add to that three more models — from the 7250R (250 hp) to the 7270R (270 hp) and the 7290R (290 hp) — each one designed by Deere to handle the bulk of your on-farm duties.

www.deere.com

country-guide.ca 5

Massey Ferguson 8700 Series 

Case IH Puma 220 and 240

Introduced earlier this year at the World Ag Expo, Massey Ferguson has brought its 8700 Series tractor to market with big expectations. With five models in all, this new lineup provides what the company literature describes as unparalleled power and fuel economy, along with some pretty hefty hydraulic capabilities. The Dyna-VT continuously variable transmission (CVT) synchronizes the engine and transmission performance for smooth and almost intuitive handling, and the operator cab has also been redesigned, adding comfort, clear lines of sight and enhanced cab suspension.

Whether you’re managing livestock and crops, or just crops, Case IH believes it has a Puma model to suit the demands on your farm. The new series of Pumas are available with the Tier 4B/final selective catalytic reduction (SCR) system, plus increased operator efficiency and better visibility. There are six new models in this series, with the 220and 240-hp models delivering a combination of class-leading power and fuel efficiency, thanks to the 6.7-litre engine. Advanced ergonomics also mean greater comfort and superior operator efficiency during those times when more hours in the cab are required.

www.int.masseyferguson.com

www.caseih.com

Fendt 800 and 900 Series  Two series of tractors with six times the selection: That’s the diversity that Fendt is promising with its new 800 and 900 Series tractors. In the 800 Series, there are four models — the 822, 824, 826 and 828 ranging from 220 to 280 hp — and three models in the 900 series — the 927 and 930 ranging from 270 to 300 hp. It’s the latest generation in Fendt’s line of high-horsepower tractors that offer mid-size power yet greater attention to ease-of-use efficiency. Of course, the 800 and 900 Series also boast Fendt’s VarioGrip system, giving the operator the option of adjusting front and rear tire pressures from the cab, together with enhanced operator comfort and visibility in the cab.

www.fendt.com

6 country-guide.ca

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Committed to your success. Our combination of genetics and traits, ground breaking innovations, and agronomic know-how gives you the power to make your yield soar. The DEKALB® brand is more than just seed, it’s confidence you can build your season on. Empowering your performance.

Talk to your DEKALB dealer today, or visit DEKALB.ca

ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Details of these requirements can be found in theTrait Stewardship Responsibilities Notice to Farmers printed in this publication ©2014 Monsanto Canada, Inc.

REVIEWS

Grow from within Sometimes, that streak of independence in farmers is simple bullheadedness. Other times, it’s business smarts at their sharpest, which is why these three books are timely reads for farms at the crossroads

By Andrew Allentuck

BOOK REVIEWED BOUNCE: MOZART, FEDERER, PICASSO, BECKHAM, AND THE SCIENCE OF SUCCESS

By Matthew Syed

(HarperCollins, 2010)

CHASING STARS: THE MYTH OF TALENT AND THE PORTABILITY OF PERFORMANCE

By Boris Groysberg

(Princeton University Press, 2010)

SCALING UP EXCELLENCE: GETTING TO MORE WITHOUT SETTLING FOR LESS Robert I. Sutton and Huggy Rao

(Random House, 2014)

hen the big firms go headhunting, and when they poach the best and brightest players from their competitors, they rarely get what they pay for.

The star hires are no longer stars.

They’re mediocre at best, and there can be a powerful lesson for farmers in why they underperform.

What does it take to move a business or a farm from average to great?

Or to grow a concept into an enterprise? These are the questions raised in three contexts by new and newish books by a former ping-pong champ, a couple of Stanford University professors and a heavy-hitting professor of management at Harvard.

Each shows that growth is best when it comes from within, not hired from outside. And although each book casts a different light on the subject, they add up to a stern message for farmers as farm size continues to grow.

Importantly, the advice — including how to anticipate the hurdles that will get in your way, and how to jump them — are as relevant to farming as they are to the next big thing in Silicon Valley. The common point is that success is contextual more than portable.

Their bottom line is that outside experts may have valuable insights and services, but success is rooted to where you are and where you have been.

Table tennis champ Matthew Syed, an Oxford grad and a columnist for the TIMES of London, demonstrates in BOUNCE: MOZART, FEDERER, PICASSO, 8 country-guide.ca

BECKHAM, AND THE SCIENCE OF SUCCESS, that excellence or, in his terms, winning in sport, is a product of striving. It isn’t the result of isolated genius. It comes from the development of skills, practice and relentless focus on the goal.

Mozart, usually thought of as a unique genius, had 3,500 hours of piano practice by the time he was six. His father, Leopold, was one of the great music teachers of his day. The old wisecrack about how to get to Carnegie Hall — “practice, practice, practice” — is the paradigm.

“The best way to predict the future is to create it,” Syed writes. This is glib, but it is the essence of industrial processes and farming. Reducing the influence of luck and increasing the influence of preparation means the difference between average work and superior work, horses that run with the pack and those that are winners. For Syed, that means focusing on the skills that produce the win. The implicit question of course is: which skills?

CHASING STARS; THE MYTH OF TALENT AND THE PORTABILITY OF PERFORMANCE by Harvard business school professor Boris Groysberg focuses on the question of which skills can be taken to new jobs from old. With 103 pages of appendices, notes and index to support 339 pages of text, it burrows into the question of whether excellence at work is portable or contextual. His guinea pigs are star analysts at Wall Street investment banks in the period 1988 to 1996.

These are the folks who pore over financial documents and visit factories in order to predict the sales, profits and share prices of companies they study.

Groysberg’s analysis demonstrates that excellence is rooted in one workplace — one farm, if you like — and its tools and co-workers, managerial goals and company support.

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REVIEWS

In a study of analysts of steel makers, airlines, etc. Groysberg found that the probability of an analyst continuing a winning streak of making right guesses about profits and, critically, getting more numbers right than other analysts at other investment banks was far greater for those who stayed than for those who allowed themselves to be poached by other investments banks.

Top analysts had a positive correlation of prior-year performance with successiveyear performance if they stayed put. They had a negative correlation of successiveyear performance with prior-year performance if they moved to another shop.

“Brilliance was not something that an analyst could pack in a briefcase,” Groysberg writes. “Top of group records appear to have been embedded in where the analyst worked. Support groups, the influence of management, managerial style, data resources, ability to travel, the kinds of clients with whom analysts interacted were highly influential on performance.”

Those firms which paid through the nose for star analysts did not get what they bargained for. Most of the time, the poached analysts lost their touch.

In other words, creating a great environment for doing business on the farm makes a real difference, both for you and your employees.

Interestingly, Groysberg’s performance drops were worse for men than for women, who are much better at taking their track records with them. Groysberg found women tended to cultivate external relationships with clients, other colleagues and sources of information more than men, and they thought more about the repercussions of moving.

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There is also the effect of the so-called “winner’s curse,” the problem that someone who does very well in one year or time period will be unable to do it again next time. The problem is exaggerated when the winner’s price or product rises, e.g., a farmer pays too much for land with an excellent production record, and then finds that in subsequent time periods, the land is not so productive or at least not productive enough to recover the premium price.

Finally, there is the underdog effect.

Not only is there some random amount of rotation of winners from fourth to first quartile or even from 10th to first decile, there is also the strong wish of recent followers to be leaders. Groysberg identifies this in the context of female analysts who, he speculates, “feel a need to be more than average, not just to be one of the group but at the top of the group.”

The last book of our three is both the flimsiest and, yet, paradoxically, the most provocative. Authors Robert I. Sutton and Huggy Rao, both management gurus at Stanford University, propose that if firms are careful to cultivate their talent, they can grow from within. That’s the theme and message of SCALING UP EXCELLENCE: GETTING TO MORE WITHOUT SETTLING FOR LESS. Sutton and Rao set up two polar cases of how companies sell themselves. They call those that are immobile “Catholic,” i.e. one size fits all. Then, those that are adaptive get called “Buddhist.”

Catholicism is outward looking, Buddhism looks inward. Catholicism is supposedly immobile and unadaptive, while Buddhism is flexible and ready to embrace new ideas.

We all agree there’s some stereotyping going on here, but you get the point.

The ideas Sutton and Rao bring up are provocative. They recall the 1964 murder of Kitty Genovese in New York when 38 witnesses heard her scream and did nothing. They call this the bystander effect, when many people take cues from others who may not react.

In a business context, this relates to your employees, or your family members, seeing something that seems to be going off the rails, and then doing nothing about it. We’ve all seen it happen. Probably we’ve seen it happen too many times.

To get past this passivity, a leader must not let subordinates fear taking responsibility, or fear being ostracized for recommending changes. Most of all, they

can’t be afraid that they won’t get any credit for their good work or good ideas.

Without such a positive environment, growing from within is all the harder.

Authors of business books read each other, and not surprisingly, SCALING UP E XCELLENCE is a summation of some of what has gone before. Putting aside cute phrases, the book has a great deal to offer. It portrays successful firms as idea mills in which astute managers can reach down to workers at the barricades and perhaps up to senior management to make the enterprise work for customers, employees and, of course, for the owners.

It can work for farms and ranches as well as national businesses. And the scalingup model is unavoidable in large enterprises. After all, everyone starts small.

The book is a compilation of anecdotes in search of rules. One may object that a case study of a high-tech company may not work for a shoe manufacturer. Yet the mass of insights is persuasive. SCALING UP EXCELLENCE is a valuable, provocative read.

Each of these books raises the issue of motivation. All three also assert that individual excellence comes from within and is a product of group co-operation. They agree too that it is group excellence that supports individual achievement.

This is much the same argument that Tom Peters made in his IN SEARCH OF EXCELLENCE, the 1982 book which spawned a thousand — that’s not an exaggeration — followers and imitators. These three books follow in his footsteps, but they are valid, unique in their ways, and solid in their insights. Read them and think. CG Andrew Allentuck is a columnist for GRAINEWS and author of several books on economics.

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business

Our share keeps falling Farmers’ portion of the consumer food dollar is plummeting.

At the very least, it’s something consumers should know

By Gerald Pilger This gap between what the farmer earns and what the consumer pays comes even more sharply into focus if you examine the slice of the food dollar that the farmer receives. South of the border, the USDA has been tracking this since 1950, and a September 2013 study entitled, “Farm-to-Food Price Dynamics,” by Dr. Randy Schnepf, agricultural policy specialist with the U.S. Congressional Research Service (CRS) concluded, “Since 1950, the average farm share has been declining as a share of total consumer food expenditures, falling from about 41 per cent in 1950 to 15.5 per cent in 2011.”

It is important to note this 15.5 per cent farm share is simply the portion of the food dollar that farmers receive at the farm gate. It has nothing to do with how much the farmer gets to keep.

The USDA Economic Research Service estimates that in 2011, only about half of that 15.5 per cent farm share actually stayed with the farmer, with 7.6 per cent flowing from the farmer to agribusiness to pay for production expenses.

Since 1950, it should also be noted, consumer spending on food has jumped immensely. In 1970 U.S. consumers spent $102 billion on food. In 2011, they spent $1.1 trillion.

Even though consumer spending on food has increased more than 1,000 per cent over the last 40 years, the share of the retail food dollar that farmers receive dropped by more than half.

So, while consumers are spending more and more, the bulk of the added spending by consumers has been captured by handlers, processors, wholesalers, retailers and food-service providers.

he disconnect between farm commodity and retail food prices is worsening. Throughout 2013, major media warned consumers of rising food costs, with BNN on May 16 reporting, “How much Canadians pay for their food is becoming a major concern.”

That same day, CBC added its voice, saying, “Canadian families are planning to cut back on the amount they spend at the grocery store in the face of rising food prices, a new report from one of Canada’s largest banks said Thursday. The RBC Canadian Consumer Outlook Index showed Canadians are displeased with rising food prices at the grocery store.”

A month later, on June 27, 2013, Globe and Mail entered the fray with, “Food prices far outpace consumer price index,” followed on August 5 by the Toronto Sun headline, “Canadian consumers cope with dramatic increase in food prices.”

Then came the fall of 2013, and as everybody on the farm knows, crop prices began a dramatic drop.

But there was no corresponding drop in food prices. In fact, spring 2014 headlines continued to report high food-price inflation.

Canada-U.S. Food Dollar Comparison, Nominal, 1997-2009 Year

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

FARM SHARE OF THE FOOD DOLLAR CANADA 12.1% 12.3% 13.1% 12.2% 10.6% 9.0% U.S.

11.4% 13.5% 12.0% 10.1% 10.4% 12.1% 10.5%

17.8% 17.0% 16.2% 15.9% 15.5% 15.3% 15.4% 15.4% 15.3% 14.2% 15.8% 15.8% 14.4%

FARM SHARE OF THE FOOD AND BEVERAGE DOLLAR* CANADA 9.6% U.S.

9.8%

10.4% 9.7%

8.4%

7.1%

9.1%

10.7% 9.5%

8.1%

8.3%

9.6%

8.3%

15.1% 14.4% 13.8% 13.5% 13.1% 12.8% 12.9% 13.2% 13.0% 12.6% 13.7% 14.0% 12.8%

*Note: Food and beverage dollar includes soft drinks and alcohol.

Canada-U.S. comparison, farm share of the food dollar, Nominal, 1997-2009*

Canada’s trade balance in processed food

20.0%

0.0

18.0%

-1.0

16.0%

-2.0

6.0% 4.0% 2.0%

-5.0 -6.0

-6.3 billion

Farm share (Canada)

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

Farm Share (U.S.)

*Note: Food dollar definitions vary between Canada and the U.S. due to data constraints.

10 country-guide.ca

1992

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

1991

-7.0 1990

0.0%

-4.0

2011

8.0%

-3.0

2010

10.0%

2009

Billions of dollars

12.0%

2008

14.0%

Source: The State of Canada’s Processed Food Sector: Trade Balance CAPI • Nov. 2012

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business The value-adding and marketing share of U.S. consumer spending on food rose from $69.2 billion in 1970 to $963 billion in 2011. In 2011, 84.5 per cent of the money U.S. consumers spent on food went into transforming agricultural commodities into food products, transporting those products to retail outlets, and on marketing and sales.

According to Schnepf, the relationship of food prices to commodity prices is not one to one. Food does not exactly follow commodity prices. Furthermore, food prices tend to be sticky. While they usually go up as commodity prices rise, often food prices do not fall when commodity prices decline.

Schnepf pointed out biofuels have been blamed for raising food prices but he has found the 25 to 30 per cent rise in corn prices attributed to biofuel only added about one per cent to food costs.

“Commodity prices are now a small component of food prices,” he says.

Schnepf also says there are many other costs that have a much bigger impact on food pricess, including energy costs, labour costs, transportation, processing and market competition.

The affluence of consumers In 2012, while working as an extension agent at Colorado University, Kim Dillivan wrote a fact sheet entitled, “Where Does the Money Go? Food Marketing Margins Explained.”

“Contrary to popular belief,” Dillivan wrote, “commodity-price increases contribute little to food-price inflation.”

Dillivan attributes much of the drop in farmers’ share of the food dollar to changing consumer preferences.

“Improved economic conditions, both in the U.S. and internationally, increase consumer demand for value-added food. Instead of buying flour and baking bread, consumers prefer to purchase ready-to-eat bread. Consumers are spending more of their food dollar to buy convenience and save time.”

Dillivan believes the general public does not realize how small a portion of their food dollar actually goes to the farmer. He also thinks the general public has been misled as to why food prices increase, so he sees farm-share data as an opportunity to inform the public about food pricing, and he suggests producers should use any chance they get to talk to consumers about food pricing and farm share.

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Is Canada losing our food-processing industry?

In November 2012, Dr. Douglas Hedley of the Canadian Agri-Food Policy Institute published, “The State of Canada’s Processed Food Sector: Trade Balance.” This paper presents a number of disturbing trends in the Canadian food-processing industry.

Highlights of the paper include: “Canada’s net trade in value-added processed food has deteriorated from a deficit of about $1 billion in 2004 to $6.3 billion in 2011.”

“While Canadian processed food exports stalled over this period, imports rose steadily.”

“Canada’s net trade in processed food with the U.S. and Mexico has been negative for the past four years, having fallen from a surplus of $2.2 billion in 2004 to a deficit of $1.3 billion in 2011.The trade situation with the rest of the world also deteriorated from a deficit of $3.2 billion in 2004 to a deficit of $5 billion in 2011.

The entire report is available at www.capi-icpa.ca/pubs.html.

Farm Share in Canada Instead of tracking farm share as they do in the U.S., Canada tracks the cost of a specific basket of food.

“Canada’s tracking of farm share has been sporadic at best,” says Jessica Kelly. While a graduate student at the University of Guelph, she analyzed the Canadian farm share for her 2014 master’s thesis entitled, “The Farm Share in Canada from 1997 to 2010: Identifying Trends in Value Distribution Along the Agri-Food Supply Chain.”

Kelly found farm share has also declined in Canada, dropping roughly 0.20 per cent per year.

However, her analysis has also identified two significant differences from U.S. trends. First, farm share is much more volatile in Canada.

Second, the farm share that U.S. farmers receive is consistently higher than the Canadian farm share, averaging about 4.2 per cent more between 1997 and 2010.

Part of this can be explained by higher food imports in Canada, especially fresh fruits and vegetables, yet Kelly suspects there are other reasons Canadian farmers receive a lower percentage of consumer spending on food than U.S. farmers get, although her research did not investigate this difference.

Even so, Kelly says, “Declining farm share does not necessarily mean farmers are being treated unfairly.”

Instead, Kelly says declining farm share reflects the changing dynamics of our food system. It is an indication of changing consumer demand for more processed food products, as well as increased eating outside the home.

It may also reflect the farmer’s ability

to produce greater volumes of commodities more efficiently, Kelly says, so a falling farm share may actually be a signal of a strong and efficient food system.

Action needs to be taken Regardless of whether our declining farm share is good or bad, farmers and ranchers should be making consumers aware of where their food dollars are actually going.

Understanding farm share gives producers facts they can use to inform consumers that food prices are less a function of commodity prices and more the result of consumer demand for highly processed foodstuffs.

Even more important, we as farmers need to be aware of the changing demands of consumers.

Consumers want to use their food dollars to purchase not only food, but also convenience and time savings.

Unless we as producers can either provide the food products that consumers demand — or partner with processors and retailers who can provide those products — we can expect the share of the consumer spending on food we receive will continue to decline.

Most of the spending by consumers on food is captured by value adding rather than production of raw commodities.

As an industry, agriculture needs to recognize this fact and expand rather than contract our food-processing sector.

Unfortunately this is not happening in Canada (see sidebar).

Producers wanting a better understanding of food pricing and how it relates to commodity pricing should read Schnepf’s paper: Farm-to-Food Price Dynamics. It is available on the web at: www.fas.org/sgp/crs/misc/R40621.pdf. CG country-guide.ca 11

Addressing a Potential Market Failure in the Forage and Grasslands Sector The CFGA recently addressed the House of Commons Standing Committee on Agriculture and Agri-Food on the issue of innovation and competitiveness in the forage and grasslands sector. One question from the committee centred on the issue of various forage legume inoculant markets that commercial enterprises no longer support. Producers relying on forage legumes understand that it has become a challenge to access inoculants for forages such as sainfoin, bird’s-foot trefoil, crown vetch, ladino, alsike, red and white clovers, as well as milk vetch. While the CFGA is addressing this issue through its Research and Extension Committee, it could take some time to resolve and may require an industry-wide solution that includes input from stakeholders such as the Canadian Food Inspection Agency, forage seed companies, as well as research and extension personnel in the public and private sector, among others.

Ideally, the CFGA is looking for a solution that does not burden any one party and provides the inoculants required for these specialty forage legumes.

The Committee noted that sometimes markets fail for various reasons. The Committee asked the CFGA if there might be a co-operative model whereby the organization could take “ownership” of the products of research into forage legume inoculants on behalf of its stakeholders. This is an interesting proposition — and there are a number

Canadian Forage & grassland assoCiation www.canadianfga.ca Ph: 780-430-3020

of instances in agriculture where this type of model has evolved. CFGA will consider the feasibility of this scenario within the context of its long-term strategy.

That strategy will take form as it gathers information. The Research and Extension Committee has completed the framework for a research strategy, which is just one document the CFGA will need to construct its comprehensive strategy for the future. Currently, however, the CFGA does not have the capacity to develop all of the reports required internally, and may have to contract at least some of these services from external industry consultants. With the announcement of Agriculture and Agri-Food Canada’s (AAFC) Canadian Agricultural Adaptation Program (CAAP) (2014-2019), CFGA may be able to take advantage of a $50.3-million program that provides non-repayable contributions for industry-led projects that help the agriculture, agri-food, and agri-based products sector adapt and remain competitive. If the CFGA were successful in obtaining a CAAP grant, project costs would be shared on a 50:50 basis between AAFC and the CFGA. The CFGA could include its own funds and/or the funds of its members, industry supporters and other project participants.

In addition to the inoculant issue, the CFGA seeks a more comprehensive

understanding of the workings of the Canadian forage seed sector. This is of particular concern given the recent rescheduling of forage seed to Part III of the Seeds Act and the limited capacity to test the performance of new forage varieties on a national basis. These issues will not only have an effect on the 80 per cent of Canada’s beef production and 60 per cent of the dairy cow diet that are currently dependent on forages, they will also have implications for the use of forages in land reclamation, restoration efforts and biodiversity initiatives as the availability of cultivated and native forage seed and inoculant declines.

The CFGA is actively seeking strategic partners in the forage and grassland value chain with a mutual interest in specific forage and grasslands initiatives.

Partners could include any organization that is committed to sharing physical and/or intellectual resources with CFGA in order to achieve a defined common objective. The CFGA also recognizes that there are many individuals across Canada who appreciate the value of our forage and grasslands, are supportive of the CFGA, and may wish to be involved by becoming Patron Members of the CFGA. Those with an interest in becoming more actively involved in forages and grasslands in conjunction with the CFGA are encouraged to contact us through our website at www.canadianfga.ca.

learn more about how peter farms smart at nhsmart.com/peterJ Š2014 CNH Industrial America LLC. All rights reserved. New Holland is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or affiliates. NHM04148906L

business

The wide view A half-hour west of Calgary, CL Ranches is winning the battles that all of agriculture may soon face

By Angela Lovell herie Copithorne-Barnes knows the feeling. Ranching at Jumping Pound, Alberta, just 30 minutes west of Calgary, she looks at today’s agriculture and sees it producing the healthiest, cheapest food the world has ever known.

But she also looks around her and sees an agriculture under intense scrutiny from the beneficiaries of that food, and also under pressure from the neighbours who choose to share the space where farmers need to conduct their business.

She doesn’t have to look far. “We are next-door neighbours to a million people,” Copithorne-Barnes says. “We have a highly affluent community that lives around us because of the oil patch. They have paid a million dollars plus to live on their property.”

But, Copithorne-Barnes adds, “They

don’t work or socialize here... and they get upset when the tires of their Mercedes Benzes get covered in cow manure.”

Copithorne-Barnes’s great-grandfather, Richard Copithorne came to Alberta in 1884 from Cork, Ireland and began assembling what became the nucleus of the 28,000 acres that CL Ranches grazes today. “Most of it is leased and includes some Crown and First Nations land,” Copithorne-Barnes says. “We have relationships that have been built over three generations.”

Yet increasingly, her neighbours are also three generations from the farm.

Their lack of knowledge of agriculture and of what ranching is about, and how it works, is threatening the social licence that allows producers to do what they do, says Copithorne-Barnes, who farms with husband Tim and her 77-year-old father, Marshall Copithorne.

Continued on page 16

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Photography: Lori Loree • Loree Photography

Hemmed in by suburban sprawl and squeezed by consumer and government pressure, rancher Cherie CopithorneBarnes focuses on ways to keep in charge of her own destiny.

It isn’t easy, but it’s working.

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business Continued from page 14 “My family has been in this community for 130 years. Everybody around me has been here no more than 30, yet their opinions are now becoming critical.

“Corporations and politicians are listening to them, and there’s a reason for that. Corporations have realized, well in advance of us producers, that it’s important to figure out what our social responsibility is,” Copithorne-Barnes says.

“We as producers have to start catching up on this because it’s not going away any time soon,” she says. “Happy customers are a result of being happy with what they see.”

Copithorne-Barnes realizes the future of her ranching tradition is being affected by influences that often have nothing to do with the realities of raising cattle, so she also knows that the voices of cattle producers and other farmers must start being heard above the din.

It’s the reason she is chair of the Canadian Round Table for Sustainable Beef, and why she is a strong advocate of the industry.

Animal welfare issues are a huge concern for consumers; they are driving changes throughout the livestock industry. At the producer level, the revised Code of Practice for the Care and Handling of Beef Cattle, which was released by the National Farm Animal Care Council in August 2013, has new requirements for the use of pain control during painful procedures such as castration or dehorning.

At the other end of the chain, A&W restaurants recently launched its “Better Beef” campaign claiming that its beef has no added hormones or steroids, and McDonald’s Restaurants has announced it will begin purchasing verified sustainable beef by December 2016.

Copithorne-Barnes has come to understand first hand the power that consumers and her neighbours have to influence how she produces her product.

CL Ranches, in part because it’s so close to Calgary, gets a lot of requests for tours. These include requests from the Canadian Food Inspection Agency and Canada Beef, as well as from the farm’s customers, such as Spring Creek and Sobeys who bring their clients to see a working cattle ranch.

“One group was from A&W and what they really wanted to understand was how to produce hormone-free cat16 country-guide.ca

tle,” says Copithorne-Barnes. After the tour, she asked why they were so interested in hormone free, which the ranch has been producing for 17 years. “They said they’d been watching their Twitter accounts — and enough of their customers were asking for hormone-free beef that they decided to go that route. You may or may not agree with what their final marketing plan was — but all they were doing was listening to what their consumers were asking for.”

About a year ago Spring Creek brought out its Sobeys meat team — or so she thought — for a tour of the ranch.

An English guy with the entourage asked endless questions about the welfare of the animals and videotaped some of Copithorne-Barnes’ answers. “As we toured the empty feedlot the guy asked me, how do you feel about putting your cows in these pens after they have been free and running around all summer?” she recalls.

“I told him you’re here in July and right now it’s green and beautiful. Picture yourself here in January, when it’s -40 and the wind’s blowing. You’d see every pen filled with calves; they’d have fresh feed in front of them; they’d be sleeping on good, clean bedding and there’s lots of shelter for them.”

Four weeks later she found out the English guy had been the market development co-ordinator for celebrity chef Jamie Oliver, sent on a scouting mission to look at how some of the beef purchased by Sobeys was produced and to determine if Oliver would allow his name to be associated with Sobeys meat.

The video of Copithorne-Barnes explaining how she raised her animals was already on Sobeys website. “I got a million-dollar endorsement that I didn’t ask for,” she says. “But I began to wonder what was going on here, and it didn’t take me long to realize that Sobeys was trying to achieve what every retailer wants. Jamie Oliver has the ability to satisfy its customers — he has 3.7 million followers right now. What retailer in their right mind wouldn’t like a guy like Jamie Oliver promoting them?”

Such experiences made CopithorneBarnes realize how important it is for farmers to be a part of the conversation about food and how it’s produced.

“Whether you’re in the specialty stream or the commodity stream, the story that’s being told can affect all of us,” she says.

“Retailers get this. They’re closer than ever to their customers… they’re in tune

with this new millennial generation and they function in the social media realm.

They engage them and educate them in a way they understand — not by preaching — but by listening to their concerns.

That’s what we have to start doing.”

Nor is it just production methods that producers need to explain, says Copithorne-Barnes, but also farmers’ social commitment to the rural communities they live in, as another incident taught her.

Copithorne-Barnes was shocked by a local radio report last October that her lease on 3,500 acres of public lands, which provided summer grazing for 550 cow-calf pairs, was about to be withdrawn because the Alberta government was expropriating the land to build a new ring road around Calgary.

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business Three weeks and many phone calls later the province confirmed the story, but it still wasn’t able to explain exactly what it would mean for the ranch, and she is still negotiating a new lease arrangement. As word spread in the community, however, an open house was held on the plan, which would impact a lot of people especially if, as expected, it blocks the road allowances that the community wanted to develop as emergency exits in case of flooding.

“One community member stood up and said, ‘I can’t believe CL Ranches would allow this to happen to that lease without consulting us and telling us, and if I hear that CL Ranches is going to get any compensation while my private land is being devalued, I am going to sue

them and the county and the province,’” recalls Copithorne-Barnes. “I was completely taken aback. These were people whose kids go to school with my kids — they are my friends and neighbours and they were ready to sue me because they didn’t understand what was going on… If I hadn’t gone to that meeting and explained it, I can’t imagine how it would have played out.”

It was a useful reminder, says Copithorne-Barnes, that in the absence of someone telling the true story, rumour and supposition will often fill up the void.

“The message is that we, as individual producers, have to get out and tell our stories,” she says. “We might think the public is not going to come knocking at our door but the reality is, they are.”

Despite the constant encroachment of an urban population — or perhaps because of it — Copithorne-Barnes is one of the very few of her generation, including her five siblings, who has decided to stay in the area and ranch. “This ranch is in my blood,” she admits. “I am one of those crazy people who will probably die dead broke fighting for this place, but I wouldn’t have it any other way.”

She’s not afraid to face challenges, and CL Ranches has a few unique ones.

Its location, at an elevation that averages around 4,000 feet, means the cost of keeping cattle is higher than in most areas. The ranch only averages 90 frostfree days and usually ends up feeding Continued on page 18

“ I spend over 50 per cent of my time managing the non-agricultural events that come up daily,” Copithorne-Barnes says.

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BUSINESS Continued from page 17 cattle for around 5-1/2 months. They have used genetics — developing what they call the CL SuperCross Breed — to help them stay in the game.

“CL has always strived to build the cow to suit our environment,” says Copithorne-Barnes. “With such a short growing season, we must have cattle that don’t require high-energy or high-input diets…

Our cows must be able to winter economically, remain fertile and raise a calf that weans heavy.”

The SuperCross was originally a breed made up of Hereford, Simmental and Braunveih, but the cattle began to become too large and had too high a feed requirement so the ranch brought in a British breed, Sussex with better forage efficiency.

“The Sussex downsized the cows from 1,400 lbs. back down to 1,250 lbs.,” explains Copithorne-Barnes. “Genetics for us is always a continuous journey.

We’ve achieved the appropriate-size cow again. Now, I’m looking to improve once again on performance without losing the fertility and structure.”

The ranch follows a strict and unforgiving cull policy. All open cows and those in poor condition are sold. In fact, it was this policy, plus the fact that the ranch has always been in the bull-breeding business, that led it to supply the naturally raised, hormone-free market in the first place.

“We don’t castrate the bull calves coming off our cows,” says CopithorneBarnes. “The bulls remain on grass until the snow no longer allows them to perform efficiently, then they’re brought into the feedlot and we select the top 25 per cent performing bulls, leaving us with the bottom 75 per cent that must be castrated and fed out.”

Originally, the ranch fed them as bulls and sold them into the EU market, but this ended with the BSE crisis, meaning

18 country-guide.ca

they had to find another avenue to sell these bulls. “We went down the path of keeping them hormone free, castrating them and selling them into the ‘Natural Markets,’” says Copithorne-Barnes.

Although this has worked well in the past, with the new Beef Code of Practice it may become a practice that’s less viable. “We will no longer be able to castrate these bulls without full pain mitigation starting January 1, 2016, and this simply adds to the cost of raising natural beef,” says Copithorne-Barnes. “In my opinion, as consumers begin to ask for more natural products, any premiums we had received in the past will no longer be as readily available as this market expands, and I worry that it might not remain viable because of this.”

The challenges seem endless sometimes, admits Copithorne-Barnes. “I spend over 50 per cent of my time managing the non-agricultural events that occur daily. For example, I have a road construction crew parked outside my front gate about to dig up the only road I have that doesn’t have a road ban on it, not to mention 600 cows calving that have to be fed. It never ends here.”

To survive, the ranch has had to be resourceful. “Our other, diversified operations simply help pay the bills,” says Copithorne-Barnes. “We use the natural resources that are readily available — space and gravel.”

The ranch is only 35 minutes from downtown Calgary and the airport, and offers some panoramic views of the Rocky Mountains, so it’s not surprising it was discovered by the movie industry. In 1991, producers for the Lonesome Dove television series, after a lot of scouting throughout Alberta, approached the ranch about building a movie set on the property.

“They needed a site that was completely isolated and close to Calgary, because in those days they would have to send the rolls

of film to the airport for shipment to be edited,” says Copithorne-Barnes.

The production company built a complete, circa 1850-1930 western townsite and studio set, and produced the TV series there for six years, after which the ranch bought it for about 10 cents on the dollar, built a warehouse to store the set decorations and props, and began to rent it out. “Movie companies come in and rent the location and all infrastructure, which they build and by contract must leave,” says Copithorne-Barnes. “All it takes to attract them is the 180-degree, unobstructed view of the mountains.”

The other diversification at the ranch is a gravel business, which takes advantage of a huge gravel resource located along the banks of the Jumping Pound Creek that runs some 11 miles through the property.

Nor does the future for CopithorneBarnes look to be getting any less complicated. “There are so many changes going on around us here with regards to land use regulations starting to weigh in, each day makes you wonder if I am truly in the ranch business or the real estate holding business,” she says. “There’s talk of making eight lanes on the Trans-Canada and four lanes on Highway 22 to the east of us, and all that does is complicate our operations by making it tough to move around.

We are starting to look at non-agricultural projects that will not affect the cows… we know that these changes are inevitable and therefore instead of fighting change, we must look at ways of surviving them.”

In part, that’s because CopithorneBarnes like other farmers has the next generation in mind, although she admits she struggles with the question of whether to encourage her children, Josh, 14 and Courtney, 11 to carry on the ranch. “Ultimately, I will leave it up to them,” she says. “If they decide that they would rather do something else, I would never hold it against them.” CG

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Stand up, be proud An open letter to Canadian ag When Greg Stewart retired as FCC President and CEO, he put his heart into this letter challenging all of us who work in agriculture to speak positively and tell the real story of ag. Reading it helps explain why FCC launched Ag More Than Ever, and why we remain so strongly committed to the cause.

Agriculture More Than Ever is an industry cause powered by more than 300 partner organizations and 450 agvocates committed to speaking up and speaking positively for our industry.

Agriculture matters to this country, and there’s absolutely no question in my mind that the future for Canadian agriculture is bright.

The industry is thriving, family farms are prospering and I see incredible amounts of optimism, pride and passion across the country. And with this success comes a responsibility – an obligation to this industry to let everyone else in on the secret, which is this: even though it’s sometimes tempting to downplay your success by saying how tough farming is, you know in your hearts you’d never dream of doing anything else. Deep down, you’re intensely proud of what you do, and it’s time to quit hiding how successful this industry really is.

It’s our obligation to make our voices heard about where the industry is heading because believe me, if agriculture doesn’t take control of its own destiny, somebody else will. So if you’re benefitting from ag, you have an obligation to give back by driving the outcome, rather than waiting to be told what to do by someone who doesn’t fully understand or appreciate the industry. That means standing up and telling the truth about Canadian agriculture, because right now, that’s just not happening enough.

So let’s take a deep breath and say it out loud together: Agriculture is the best industry in the world. We’re honoured to be part of it. We can only hope that our children find the same fulfilment from whatever path they choose in life. We’re incredibly proud of what we do. And yes.

We want the Canadian public to be proud of our success, too.

Short of fulfilling my childhood dream of being a farmer, my career in agriculture has been the best ride I could have imagined. I can’t help being excited for the future of this industry.

I’m forever grateful for the opportunity I have had to serve this amazing industry and the wonderful people in it. Thank you.

I wish you all great success. Stand up and be proud – you’ve earned it.

FCC is a proud partner of this cause.

Greg Stewart

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AgMoreThanEver.ca

2014-06-27 7:33 AM

business

On the job Can farmers compete against the oilfield and other industries? Our Lisa Guenther goes straight to the source

By Lisa Guenther

Jesse Bannerman works as a farrier, runs cattle with his brother, and works on a cousin’s farm. Or he could get one job in oil.

s farms get bigger, the challenge of finding workers to cover those extra acres or to help manage those larger herds is getting bigger too, especially when agriculture goes head to head up against more lucrative jobs in other sectors.

Farmers are a bit perplexed, though. I mean, surely anyone would want the life that comes with working on a farm, especially compared to the endless hours of an oil rig, for instance, or to working the midnight shift in a grimy factory or at a job that makes you sweat out the summer in a grungy, dark downtown apartment.

Farming offers benefits that other industries can’t, farmers say, such as a chance to be close to nature, to work with a variety of machinery, and to live a healthy life in the open countryside.

That’s what farmers think.

But what do farm workers think?

Every region in Canada has its own industries that compete for workers. In Saskatchewan, it’s the oil and gas sector.

So I went to young people in our area, and I asked them, do they agree that farming really offers them a better working environment than the oilpatch?

Even more important, I wanted to know — once they go to the patch, is there any chance of getting them back?

Love of the land I started with Jesse Bannerman who grew up on a ranch near Livelong, in northwestern Saskatchewan. These days the 25-year-old works as a farrier, he runs 115 commercial cattle with his younger 20 country-guide.ca

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“ If you enjoy being outside, I really recommend it,” Jesse Bannerman says of his decision to work in ag

brother, Jake, and he works too on his second cousin’s mixed farm.

Though he’s obviously a busy young man, he’s happy to make time to talk about his experience working in ag and oil.

Earlier in his 20s, Jesse put in several months at Czar Feedyards, south of Wainwright, Alta.

“One of my passions is working with cattle. And I got to work with horses every day, so I really enjoyed that,” Jesse says.

Jesse cites the physicality of agricultural work as a benefit too, and the fact that he was always learning.

“If you enjoy being outside I really recommend it,” Jesse adds. “You get to see lots of scenery. Lots of wildlife, too.”

In other words, Jesse’s thinking and his experiences are exactly in line with what many farmers think: there’s no life like it.

Just a few miles down the road, Jesse’s cousin Chase Bannerman grew up on a seedstock Hereford operation, doing everything from haying to showing cattle through 4-H. Chase, now 20 years old, also clocked nearly two years at One Earth Farms, handling cattle.

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Chase counts working with cattle and machinery as benefits that go along with farm work.

“There’s not a whole lot of the farm I don’t enjoy,” says Chase.

And it’s not just the scenery and the job that pulls workers into agriculture.

The people themselves can be a draw.

“Everyone who’s involved in agriculture is very passionate about what they’re doing out here,” says 20-year-old Braden Clarke. Braden grew up on a farm seven hours from the Bannermans in the Weyburn area, in southeastern Saskatchewan, and he still calls the area home. In high school, he worked for a neighbouring grain farmer and also did oilfield fencing.

Braden says people in agriculture take pride in their industry. “Everybody has their neck out on the line, and nobody really wants to be just putzing along and have someone out there who doesn’t want to help them better themselves.”

Robert Ellis packed in a lifetime of work experience into his 20s. He spent Continued on page 22 country-guide.ca 21

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Continued from page 21 several summers working on a farm while in university and also added Australian farm work to his resumé.

Robert then jumped to the oilpatch, working as a swabber. Once the pump jacks have been pulled from oil wells, swabbers scavenge two or three barrels a time, up to five times a week. Robert’s boss expanded the business, and Robert bought in. When horizontal wells came in, their mineral rights soared in value, so they sold. And that is how Robert went farming.

Now 32 years old, he farms 6,000 acres near Elrose, Sask. He has three farm employees “and it just seems like more of a family-oriented thing and everybody kind of gets along and tries to get the common goal done at the end of the day.”

In the oilfield, by contrast, “it’s almost like you’re competitive with the next guy standing beside you,” says Robert.

Farm employees also generally work close to home, which isn’t the case for people with camp jobs, Robert says. Plus farm work slows down in the winter, he adds, and often employees get weekends off.

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Somebody’s going to pay Nor is a love of agriculture necessarily enough to keep farm workers on the farm.

The oil industry sends living expenses sky high, and Chase says farm employers need to keep up.

Chase knows it’s hard for farmers to keep workers in areas where they’re competing with the oilpatch. “But I think it all comes down to money, really,” he says.

“People see opportunities in the oilfield and the money they can get.”

That’s certainly the case with Chase.

After nearly two years of working with One Earth Farms, Chase’s uncle offered him a welding apprentice job, doing tank maintenance.

“It was too good an opportunity to pass up,” says Chase.

Chase adds some farmers have side businesses in the oilfield plowing leases, building roads, or towing equipment, and so they employ people for both businesses.

Robert agrees farmers don’t have much choice when it comes to competing with the oil industry for wages.

“Down in our area there’s quite a bit of oil,” says Robert, who adds he pays what he considers big wages to his farm employees. “Wages have definitely gone up a lot for ag workers in the last five years, and they’re going to continue.”

Robert also suggests giving flexible hours when the season’s not busy. “And just trying to be a great boss to work for I think is a lot of it.”

Jesse Bannerman says he would have stuck with the feedlot, but he had cattle at his parents’ ranch, which was a 3.5 hour drive each way. He went to work on the rigs to make some quick cash, then took a job close to home with an oilfield service company for a while.

In his mind, farmers are dealing with a fraction of the potential workforce.

Whether or not someone is suited to farm work depends on their goals and preferences, says Jesse. “If you like having fancy toys and things you might want to stick to the oilpatch.”

That’s partly why Braden Clarke has been roughnecking for the last two years, and why he’ll be starting a twoJ u ly 2 0 1 4

Photography: mark seabrook

“ It was too good an opportunity to pass up,” Chase Bannerman says to explain why he jumped to the oilpatch

business year petroleum engineering technology program in Calgary for the fall.

But it’s not just the money that attracted Braden Clarke to the oilfield. “Nobody in my family was ever involved in the oilfield.

So for me it was a big venture out. Kind of something that intrigued me.”

Braden’s crew also gets along, which is another plus of his current job. “With the crew I’m working with now, we hang out outside of our shifts.”

Chase enjoys his job, too, and compares it to working in the shop. “You’re actually building things. At the end of the day you can look at what you’ve done and feel you’ve accomplished something.”

Although Jesse eventually left the oilfield, he enjoyed parts of it, too.

“I just didn’t like it as much as farming, but the biggest thing that I had trouble with was to get time off when I needed it just because there’re lots of guys who were farming more than us at the time,” says Jesse. “And everybody takes holidays at the same time. It’s hard for employers to keep everybody happy, which is understandable.”

Jesse suggests farmers keep their employees learning.

“If you’re doing something you haven’t done before you’re a lot more interested in it,” Jesse says. “That’s what I really like.”

the family farm or work for farmers during spring breakup.

Chase hasn’t turned his back on agriculture, either. He still works on the family farm and is investing in it, too. A goodpaying job speeds him towards his farming goals, he says.

Jesse points out both industries are vital to Saskatchewan’s economy. The oilfield helps keep the small towns going, he says.

And he was able to leverage the dollars he earned in the patch into his own operation.

“It’s tough not to have a secondary

job, and the oilfield provides a lot of opportunities,” Jesse says.

Robert’s dream was always to farm, and the oilfield helped make that dream happen. He recalls the day, in his early 20s, when his father held an auction sale, marking the end of the family farm.

“That was almost one of the saddest days of my life, thinking that maybe you’ll never get a chance to farm on your own again.”

But then, he got that job in oil and it all turned around. CG

There’s job satisfaction in oil too, says Chase Bannerman. “You can look at what you’ve done and feel you’ve accomplished something.”

Moving to the patch and back The hidden irony is that the farm is an ideal training ground for the skills needed by oilpatch. The solid work ethic that farming nurtures is sought after too.

Farm work gave Braden the confidence to handle new situations in the oilpatch, he says. And working on machinery helped out in the patch, too.

“You go to work on a rig and the guys are surprised you even know what the tools are called,” says Braden.

But just because a farm worker spends time in the oilfield, that doesn’t mean they’ll become estranged from the farm.

Braden puts in his shift on the rigs, comes home, and puts in another shift on the family farm. And he’s not the only one on his crew.

“One of the guys I work with, he’s now working for a farmer during breakup,” says Braden. He adds it’s common for oil workers to help out either on J u ly 2 0 1 4

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Where to next?

Someone is always trying to predict the future of agriculture.

You might even be tempted to believe them… at your peril

By Gord Gilmour, CG Associate Editor

uman beings just can’t stand to feel that they’re being left in the dark. There’s something about the unknown that flat out bothers us.

We go to enormous lengths to try to see what might be coming next, and we divert a big pile of our cash and an even bigger pile of our even scarcer time and attention to following market reports, listening to experts and going to meetings and conferences to try to sort out what is coming down the pipe.

In fact, agriculture is among the worst, ever since the biblical foretelling long, long ago of seven years of feast followed by seven years of famine.

It’s only natural in an industry that is so tossed about by weather — and by the volatile prices that result — that farmers keep their eyes on the horizon for any kind of insight.

Increasingly, it’s also good business. With the resources that are needed to keep farming today, let alone the big dollars needed in order to expand, who wouldn’t be looking for a glimmer of the world a few years down the road?

But, if we turn to corn as a convenient example, in the last decade alone we’ve been told that a bushel will always sell for $8, or always for $3, or for maybe something in between, just as we’ve been told that land prices have topped out, or that they have barely begun to rise.

Is the world really going to run out of food? Or are farmers going to overproduce their way into gluts and low prices all over again? The truth is, no one really has a clue

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We’ve also been assured that the world will run out of food, only to hear from the next expert that farmers are more than capable of growing a glut, no matter how many mouths need filling.

The problem is, each of those predictions has sounded utterly reasonable, absolutely scientific, and totally believeable.

The question is, is there a way for farmers to separate the true from the misguided?

What’s a farmer to do?

The answer might start with looking at just how old the debate actually is. It might seem like all today’s talk about global population growth and the rise of the middle class has come about because we’re living in a new, unprecedented point in history.

But there’s very little that’s unprecedented about it.

Just barely out of the age of antiquity, Scottish cleric and political economist Thomas Malthus coined the Malthusian principle in his 1798 work An Essay on the Principle of Population. He theorized that every population will always expand until it exceeds its ability to feed itself.

Malthus has mostly been proven wrong so far.

Better agricultural practices have continually boosted our yields to meet the need. But we still believe him, such as in the early 1970s, when the European thinktank the Club of Rome released its seminal work Limits to Growth. It tried to put a modern spin on it, but it was in essence a rehash of Malthus’s central idea that limited resources would act as a check on growth. It came at roughly the same time that pop culture was fixating on the same issue, in books like Paul Ehrlich’s Population Bomb.

In other words, there have always been predictions that we’re on the edge of global starvation. And to date, farmers have always saved the day.

So when agriculture in the 1970s experienced another of its period price spikes, with demand outstripping supply, many believed the future was here.

In the rear-view mirror, however, the view is different, and predictable. Given a price signal and lots of encouragement from people like then U.S. agriculture secretary Earl “Fencerow-to-Fencerow” Butz, farmers made investments and kicked it up another few notches. As always, high prices solved high prices, and soon the world was awash in a grain glut.

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More recently, history might not exactly be repeating, but it does seem to be rhyming. Economic growth in developing countries is building demand for better food products, and at the same time the ethanol market is sopping up a huge portion of the U.S. corn crop. This has prompted the usual shouts of “it’s different this time” that usually accompany the boom right before the bust.

But is it different? Maybe. Or maybe 300-bushel corn will kill this dream too.

The point is, we don’t know. So should we even bother listening to the next big prediction? Does anyone even have a sniff as to what the future holds?

The certainty principle At the University of Manitoba, noted agriculture economist Brian Oleson, often gets skeptical when he hears anyone taking a long view with dead certainty.

“None of us really know,” Oleson said in a recent interview. “If either you or I, or anyone else for that matter, did, we’d take a big position in the market, make a lot of money and retire very rich to a beach somewhere sunny.”

In big part, the problem with longterm predictions is they’re inevitably being made by human beings, and most of us simply haven’t been around long enough to spot the natural rhythm of things, making us all too susceptible to believing what we want to hear — things like it’s a new era for farming, where the good times will last forever.

To gain a little insight into the longer trends, Country Guide was fortunate enough to talk to someone who’s been around the block a time or two, with the tales to tell to prove it. Charles “Red” Williams is a professor emeritus with the University of Saskatchewan and a wellknown public speaker and newspaper columnist on agriculture topics. These days he’s looking hard at 90, but even a few seconds of conversation confirms his formidable mind remains in fighting trim. Contacted by a smart-aleck young writer looking for insight into the future, he chuckled a few seconds and delivered a crisp assessment.

“Well, I think C ountry G uide is brave to even take this on, and you’ll do fine if you just accept one thing — the

Predictions to trust It looks like $4 corn is here for years to come Is it folly to believe any prediction? Strangely, our three academics don’t think so, at least in the relative near term. In fact, they say there’s plenty of writing on the wall, if you’ll just clear away the clutter and look at what’s important.

So here are predictions from the people who spend a good part of their lives debunking other people’s forecasts.

Red Williams at the University of Saskatchewan tells us he’s most confident that technology will race onwards, including farm robots and other autonomous equipment that will see farmers effectively farming from their offices in many cases.

“I think that’s pretty much a given now,” Williams said. “I think engineers are right on the verge of putting a lot of things together right now, and enough progress has been made that you can predict that fairly safely.”

But there are important human factors at play too. Williams for one expects to see more smart and savvy women take dominant roles in farming and agriculture.

“I remember the first woman who studied agriculture at the University of Saskatchewan, and today they make up about 70 per cent of the students,” Williams said.

“They’re not just doing well, they’re doing very well. The boys are all off digging holes in Alberta, and the girls are the ones getting an education.”

Brian Oleson says the news might not be welcomed by farmers, but the latest reports from the USDA and the Food and Agriculture Policy Research Institute (FAPRI) at the universities of Iowa and Missouri show that leaner times may be upon us again.

Those reports are calling for corn to stay at the lower end of the range for years to come, as production meets demand.

“One person I spoke to told me he’d never seen such an abrupt change,” Oleson said.

Oleson said both reports confirm a growing consensus among agriculture economists that the boom couldn’t run forever. And the numbers and timeline are far from encouraging for farmers.

“They took corn to around US$4 a bushel, where it stays until about 2022,” Oleson said. “I agree. I think we are entering an era of $4 corn.”

John Cranfield agreed prices are likely to stay on the lower end of the range for a while, saying it’s a predictable pattern that the world has seen before, where demand outstrips supply for a time, sending a price signal to producers and investors.

It’s the archetypal patter. Prices rise, productivity grows for a time, and supply meets demand, and prices fall.

The historic curve got bounced by the sudden surge in demand coming from politcally mandated ethanol consumption, but Cranfield and Oleson both say that was a one-time-only surge.

“In a lot of ways we’ve seen the beginning of the ethanol boom, and the end of it, because of fracking,” Oleson said, referring to new technology used to release oil from shale formations.

Cranfield also said he’s expecting the emerging power of consumers to continue to have a major role in shaping agriculture, through consumer preferences. Love it or hate it, producers are going to have to grapple with things like consumer attitudes toward sustainability and animal welfare, whether they’re scientifically justified or not.

But the new consumer age will create opportunities too, Cranfield said. “I also think there will be changing preferences from consumers and a greater market for things like functional foods.”

Continued on page 26 J u ly 2 0 1 4

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Continued from page 25 second you write it down, you’re going to begin being wrong,” Williams said.

He explained that his generation didn’t do a great job of predicting the future, the next didn’t either, and the current one likely won’t beat anyone else’s record.

“Going way back, we had no idea what would be coming over the next 40, 50 or 60 years,” Williams said. “We just had a glimpse or two, really.”

To give some sense of just how fast things can change, Williams spoke of his own experience around the time of the Second World War. Prior to joining up, he finished one last harvest, as a member of an old-school threshing crew, running a team of four horses. Just a couple years later he had a frontrow seat to the D-Day invasion of Normandy, even to this day one of the most impressive displays of mechanized warfare ever launched.

“ As futures get closer and closer to maturity, they become a very good barometer,” Cranfield says. “Further out than that, things start getting really shaky.”

“There were 4,000 ships, many with 16-inch guns that pounded targets 25 miles inland,” Williams said.

“You watched wave after wave of planes — thousands of them — coming overhead. The British even assembled, floated over and anchored a movable harbour just off the coast.”

Returning home, he was still in uniform when he got a message from his uncle, who farmed on the fertile Regina Plains, calling for help with the harvest.

Still in uniform, he requested leave to help finish.

When he arrived he saw the first sign of the change that was about to come.

“He had a small combine, and together he and I finished the harvest,” Williams said. “That was one of the greatest legacies of the Second World War — we created the heavy manufacturing capacity to build things like larger tractors and other farm equipment.”

Likewise the first agriculture chemicals were things like DDT, developed to protect troops from malaria, and fertilizer became much more readily available as high explosive plants were repurposed to nitrogen fertilizer production.

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“God help us, but a war really speeds things up,” Williams said. “But at least after the war we were able to turn these things to peaceful purposes — we really did turn the swords into ploughshares.”

His central point remains strongly held — a young person leaving college today to go back to the home farm can’t possibly predict the unpredictable, or envision just how things will play out any more than the young man who marched to war in the early 1940s. Human history is littered with so-called black swan events that are utterly random, even to the most informed and involved participants.

“That’s the nature of black swan events — they’re totally unpredictable, that’s what makes them black swans,” says Oleson of the U of M.

Practical insight All this adds up to a real hesitation on the part of reputable academics to try to peer too far into the future, preferring to leave that to the self-styled futurists.

John Cranfield, an agriculture economist with the University of Guelph, puts it this way. He says there’s a really good track record of accuracy in the very short term, measured in a few months or a year, and he convincingly points to futures markets as the best example of this.

“As futures get closer and closer to maturity, they become a very good barometer that farmers can use to take action,” Cranfield said. “Farmers can use them to determine things like their crop mix, and to make other economic decisions. But further out than that, things start getting really shaky.”

Cranfield says medium-term predictions can have some value, over a time frame of five to 10 years, but even they should be taken with a grain of salt, because unpredictable things can happen.

“It’s like a public opinion survey you might see,” Cranfield said. “Those are usually said to be accurate, on average, plus or minus a few per cent, 19 times out of 20.”

Brian Oleson agrees that such predictions require caution, but also says the agriculture economics field has accrued a bit of a track record of success predicting these medium-term trends.

“I think we’ve more-or-less been good,” Oleson said. “In the early 1970s we said there would be a period of prosperity, and there was, for about 10 years, until the early 1980s. By about 1982, we were saying we were headed into a tougher period, which we did. Beginning in about 2004 and 2005, we started talking about heading into a better period we thought would last about 10 years or so.”

But what about those big-picture, headline-grabbing statements about new paradigms and the like? Here nobody Country Guide spoke to was willing to plant a flag in the ground and try to defend their track record.

“When you get out a long ways — 25 years or even more — I wouldn’t say I have a lot of confidence in those sorts of predictions,” Cranfield said.

“It really is a stab in the dark most times.” CG J u ly 2 0 1 4

soil matters………..www.ifao.com

Ryan Speer’s Experiences with Precision Ag and Cover Crops written by Kate Procter

Ryan Speer is convinced that cover crops are the answer to the challenges they face on the sandy loam soils on his farm in Kansas. Photos showing his neighbour’s conventionally tilled soils blowing onto his suggest he may be onto something.

Speer recorded 2.5 inches of blown soil after a November day of 40 mph winds.

“Continuous no-till isn’t enough – you need to maintain 100 per cent ground cover,” says Speer. Having used continuous no-till on their farm since 2002, Speer knows a bit about it. “If it isn’t working, it is something I’m doing wrong,” he says.

Cover crops have helped Speer to make the transition to no-till – reducing that transition period from five to ten years without cover crops to one or two years.

Speer uses cover crops for many purposes.

His goals with whatever rotation he is using include building organic matter, using excess moisture instead of allowing it to run off, scavenging nutrients, feeding soil microbes, and suppressing weeds, which reduces input use. When Speer scavenges nutrients, he not only stops nitrogen from leaching, he also pulls P and K from deep in the soil to feed his cash crops.

Six years of trials have shown that cover crops have provided many benefits. In a time when weeds are developing more and more herbicide resistance, using cover crops to suppress weeds has proven to be a huge asset for Speer. Cover crops also keep his soils cooler, reducing heat stress and the quicker-forming canopy shows his plants are healthier. He was able to cut irrigation on his farm by 30 to 35 per cent on average over

six years. During that time, Speer also showed on average, a nine bushel per acre advantage in side-by-side trials comparing cover crops to no cover crops. Speer calculated that his bottom line averaged $51.75 more, without factoring the reduced costs of chemical or irrigation savings.

In the fall of 2011, they did not plant a rye cover crop. Speer says this hurt them in several ways. They experienced lower yields and spent $30/ac more on herbicide, and still had more weeds than where they had cover crops. “There are no monocultures in nature – if you try to leave it bare, you will get weeds,” he says.

When asked how he manages all the trials he conducts on his farm, Speer answers, “I’m a control freak and I do it myself.”

Cropping just under 4,000 acres used to take three full time and one part time person. Now they have more acres, but half the people are needed to get the work done. “I have not taken a summer vacation in 16 years, but I’m never there in the winter,” he says.

“I gauge if soils are healthy by turning over a shovel full – if there are six worms, good, if less than six, I need to do more work. This really correlates to microbiological life,” he says.

business

A new farm that buzzes Eight years ago, Dragonfly Garden Farm struggled to get off the ground. Now, it’s working toward $1 million in sales

hile many dreamers might spend their whole lives thinking they’d like to farm but never do it, Cindy and Mike Wilhelm made it happen. In fact, only seven months after making the decision to farm, they were the proud owners of a 70-acre farm near Chatsworth, Ont. that they named Dragonfly Garden Farm.

Eight years later they have established a successful farm where they raise pastured beef, pork, chicken, turkeys, ducks and geese which they market themselves through an on-farm store and CSA program.

This is no small feat, given that neither Cindy nor Mike had any farming experience or agricultural education before making the leap.

They did, however, have many transferable skills. Mike is an auto mechanic, which has been handy for keeping their older farming equipment running.

Cindy meanwhile has a diploma in marketing, which has helped her establish a loyal customer base locally and in Toronto.

Other than that, what they didn’t know they figured out how or learned through self-education and first-hand experience.

“I have a reference book on every type of livestock we have,” explains Cindy who grew up in the small town of Monkton. “I came up through the 4-H program where the motto is to learn by doing.”

Admittedly, this isn’t always an easy way to learn, says Cindy, who also keeps beehives on the farm. “The bees are painful teachers,” she says with a chuckle.

It’s the kind of remark that convinces you Cindy is made of the right stuff for farming.

Early on, the Wilhelms did take a two-day workshop from the Ecological Farmers of Ontario on soil ecology that was really valuable, says Cindy. Healthy soil is the foundation of the farm, she says.

Although they are not certified organic, they follow organic farming principles, she says. They always planned to farm organically but the cost of getting certified was too high. They would have had to pay a fee for each commodity, she explains.

“It would be a paperwork and financial nightmare.”

Instead they encourage their customers to come to the farm to see for themselves how the animals are raised.

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Photography: David Charlesworth

By Helen Lammers-Helps

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Don’t underestimate the value of farm marketing, say Cindy and Mike Wilhelm, who built a whole farm on that strategy

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“Our customers don’t demand that we be certified organic,” says Cindy. And since the Wilhelms don’t market outside of Ontario, it isn’t necessary to be certified organic, she says. What’s important to her customers is that the animals be pasture raised and treated humanely. Her customers believe meat from pasture-raised animals is superior to meat from confined animals, she says.

Two-thirds of the meat they produce is sold through a CSA (community-supported agriculture) program to clients in cities within a two-hour drive, including Toronto, Waterloo, London and Hamilton. CSA members get 20 to 40 pounds of meat delivered each month between June and November, either directly to their door or to a common pickup location such as a health food store (the less expensive option).

Members can also choose from a mix of available meats.

Cindy and Mike are partnering with nine other farms who supply some of the meat such as lamb, bison, and turkey which they don’t raise themselves.

CSA members pay 50 per cent up front in May and the rest in August, which helps with the cash flow, adds Cindy.

The Wilhelms are now also offering cheese, eggs and vegetables produced by other farmers as well.

To ensure that partner farms are using acceptable farming practices, the Wilhelms visit each farm annually, do spot checks and have the farmers sign a partnership agreement that Cindy created to cover all the bases of sustainable farming practices.

About 15 per cent of their meat is sold locally through either their on-farm store or through area stores that specialize in local food.

After discovering that it was difficult to get access to organic feed in their area, they became dealers for Homestead Organics, which accounts for the remaining 10 per cent of their income.

For marketing, Cindy relies on the website (www.dragonflyfarmstore.ca) and an electronic newsletter that she produces through the Constant Contact direct email marketing platform.

She has a database of 900 subscribers for her newsletter which she writes herself.

“The newsletter converts people from prospects to customContinued on page 31

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Doorstep delivery, hunter-gatherer style

A

nne Marie Heinrichs is the kind of consumer who farmers often feel they just can’t get on the same wavelength

with.

It doesn’t take long to find that out.

Based on her reseach, which included a television documentary on modern food production, Heinrichs says she felt inspired to switch to whole organic foods.

Then, only a few weeks after making the switch, she says, the chronic pain she had experienced for 25 years disappeared. After a few more months, she had shed excess weight and was healthier.

Farmers can cry foul all they want, but Heinrichs was convinced that this was how she wanted to feed her family. As a busy business owner and mother of three, however, she had trouble finding the time to shop at several different places and to cook from scratch every night.

That’s what put her on a business path where perhaps she shares a bit more in common with most farmers.

Figuring there had to be others who were facing the same challenges, she launched Farmers Kitchen Table, a meal delivery service that focuses on healthy, local, sustainable food. The meals are made by a local chef and are delivered right to the customer’s door two times per week in Kitchener, Waterloo, Cambridge and Guelph.

Meat and vegetables are sourced from

local farms including Dragonfly Garden Farm, Rowe Meats and Nith Valley Organics.

To accommodate customers with celiac’s disease, the autoimmune reaction to eating gluten found in wheat, barley and rye, Heinrichs partnered with a local bakery, Newton’s Gluten-free, that specializes in gluten-free bread, muffins, and desserts.

Many of the meals prepared for Farmers Kitchen Table are suitable for those following a Paleo diet, which is based on the concept of eating only the foods that our huntergatherer ancestors would have eaten. Many naturopaths and holistic nutritionists recommend this type of diet.

For convenience, the meals can be ordered online, and the menu changes each week to add variety and take advantage of seasonal produce. Some dishes, such as lamb stew, are available year round.

Items from the weekly menu are delivered fresh while those from the “Always Available” menu are frozen. Customers who aren’t going to be home at the time of delivery can leave a cooler out. Some people have the meals delivered to their workplace so they can refrigerate them right away and then take them home with them, says Heinrichs.

Meals come in three portion sizes: Adult, Child and Senior. Predetermined portion sizes prevent people from overeating.

With an eye on sustainability, meals are

delivered in 100 per cent recyclable containers that can be used in the freezer, oven or microwave. Customers who purchase a monthly or annual membership can opt to have their meals delivered in reusable glass dishes.

Members also have access to the company larder which includes gluten-free condiments, preserves and snacks. They also receive invitations to exclusive members-only events such as supper clubs.

Heinrichs launched the business last March with a tasting event at the Walper Hotel in downtown Kitchener. About 200 people came out to try the ready-to-eat meals and meet the chefs, bakers and farmers.

Heinrichs continues to develop the concept and increase market reach. For example, she is joining forces with the Guelph-based Homefield Organics which delivers organic groceries. “Homefield will offer some of our frozen dishes on its weekly list that it sends to its customers so that it can have our meals delivered as part of its produce delivery,” explains Heinrichs.

Eventually, she hopes to add a retail location where meals can be picked up.

Sales are growing slowly, which is what Heinrichs expected. “It’s a new type of concept for people… to try to plan ahead and trust that the food will be there for their families!”

For more information, go to www.FarmersKitchenTable.com.

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business Continued from page 29 ers,” Cindy says. She developed the website with the help of a graphic designer.

This year they also have a new customer. The Farmers Kitchen Table will be using Dragonfly Garden Farm meats for chef-prepared meals delivered direct to customers’ homes in Kitchener, Waterloo, Guelph and Cambridge. Geared to those who want local, sustainable food, the company produces ready-to-eat, gluten-free meals. (see sidebar.)

Cindy’s goal is to eventually have sales of $1 million from a combination of their own produce and 20 partner farms.

Small farms need to band together, she believes. They also need political clout.

Among the obstacles to their growth are the caps on the number of laying hens and meat chickens and turkeys they can keep since they don’t own quota. (They are limited to 300 meat chickens, 100 laying hens and 50 turkeys.)

This past winter, Cindy invested her time in developing an e-commerce site on the farm store website to market the wealth of locally made artisanal food products. She took courses through an online business development program to gain the necessary skills. Currently she has 50 shelf-stable items such as barbecue sauce, jams, jellies, pickles and relishes in the store pantry. She is hoping to double that number in the near future.

All of these pantry items have to be made in a commercial kitchen and must meet labelling requirements, says Cindy.

The Wilhelms believe the market is there. But they can’t just wait for the market to come to them. So, while it’s true that 13 million people live in Ontario, 80 per cent of them are in large cities.

Says Cindy: “I believe we need to

Theirs is still a small farm, but the Wilhelms are succeeding in a business where others never get further than dreaming. The difference, says Cindy, is that they know it’s up to them to connect with their customers.

meet them where they are and make it easy for customers to access these incredible artisan products.”

So far, cash flow has been the biggest challenge of starting the farm, says Cindy. For the first several years every dollar they could spare was plowed back into the farm. Now with eight years behind them, that’s getting a little easier, she says, even though they continue to expand the operation. They are renting an additional 96 acres and this year they are adding a walk-in freezer while also increasing the size of the on-farm store.

Down the road they would also like to add U-pick blueberries, raspberries and strawberries.

With their “can-do” attitude, business acumen and ability to seek out information they need, she and Mike believe they have laid the foundation for a successful farm business and made their dream of farming come true.

In the early years they both had offfarm jobs to keep them afloat. “It was like working two full-time jobs each,” she says. Now they both work full time only on the farm.

The amount of work involved in getting the farm established was also daunting, says Cindy. “I’m glad we did it, but I wouldn’t want to do it again,” she says, and then with a gleam in her eye, she chuckles some more. CG

Trait Stewardship Responsibilities Notice to Farmers Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. Commercialized products have been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. Excellence Through Stewardship® is a registered trademark of Excellence Through Stewardship.

ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Acceleron® seed treatment technology for canola contains the active ingredients difenoconazole, metalaxyl (M and S isomers), fludioxonil, and thiamethoxam. Acceleron® seed treatment technology for soybeans (fungicides only) is a combination of three separate individually registered products, which together contain the active ingredients fluxapyroxad, pyraclostrobin and metalaxyl. Acceleron® seed treatment technology for soybeans (fungicides and insecticide) is a combination of four separate individually registered products, which together contain the active ingredients fluxapyroxad, pyraclostrobin, metalaxyl and imidacloprid. Acceleron® seed treatment technology for corn (fungicides only) is a combination of three separate individually-registered products, which together contain the active ingredients metalaxyl, trifloxystrobin and ipconazole. Acceleron® seed treatment technology for corn (fungicides and insecticide) is a combination of four separate individually-registered products, which together contain the active ingredients metalaxyl, trifloxystrobin, ipconazole, and clothianidin. Acceleron® seed treatment technology for corn with Poncho®/VoTivo™ (fungicides, insecticide and nematicide) is a combination of five separate individually-registered products, which together contain the active ingredients metalaxyl, trifloxystrobin, ipconazole, clothianidin and Bacillus firmus strain I-5821. Acceleron®, Acceleron and Design®, DEKALB and Design®, DEKALB®, Genuity and Design®, Genuity®, RIB Complete and Design®, RIB Complete®, Roundup Ready 2 Technology and Design®, Roundup Ready 2 Yield®, Roundup Ready®, Roundup Transorb®, Roundup WeatherMAX®, Roundup®, SmartStax and Design®, SmartStax®, Transorb®, VT Double PRO® and VT Triple PRO® are trademarks of Monsanto Technology LLC. Used under license. LibertyLink® and the Water Droplet Design are trademarks of Bayer. Used under license. Herculex® is a registered trademark of Dow AgroSciences LLC. Used under license. Poncho® and Votivo™ are trademarks of Bayer. Used under license.

All other trademarks are the property of their respective owners.

Genuity Legal Ad Ad # 4187 7 x 2.5 CGE LCA00893 Urban & Co

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McKinven and Beerwort had to choose. Either get creative, or get out. That’s when they got creative

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Their own path Like a growing number of operations across the country, Quebec’s The Lookout finds success by heading in a direction all it’s own

Photography: Jessica Goodsell

By Amy Petherick

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rong turns are part of steering any business to success, as are some unexpectedly bumpy roads.

There is no such thing as a perfect roadmap, with the upshot that many young farmers suffer indecision along the way, and some even abandon their course at times.

All the same, the story of Lookout Holsteins and Jerseys in North Hatley, Que. doesn’t include any time spent looking in the rear-view mirror.

When they started farming together in 1988, Callum McKinven and Katherine Beerwort were newlyweds without any significant worldly possessions. Callum had grown up on a farm that was well known within the Jersey-breeding world, but it had been inherited by his brother.

Katherine came from a large family that had also experienced great success - as Holstein breeders — but that property also passed into the hands of a brother.

What they did have was a mutual love for cows and a mutual determination that the lack of a place to house some cows wouldn’t slow them down. They searched and found a farm with some quota that was available for rent in Donnan, Que. and started buying young stock.

“We started off with a bang,” Callum fondly recalls. “One year after that first year that we started, we had the most all-Canadian nominations for Holsteins in the country.”

They quickly built name recognition for Amlaird, a herd name chosen to honour Callum’s father’s farm back in Scotland and everything seemed on track. But then, four years into a great start, their lease on the Donnan farm came up.

The couple found a little place they could afford to buy not far from Richmond, Que., but it didn’t come with quota.

Buying a dairy barn without quota is hardly a recommended practice in the dairy industry. For most farms, it would be classed as not exactly a bright move. But the couple had already calculated that their collective expertise was in producing great cows, not necessarily milk.

Callum had “the eye,” what his dad had called his ability to forecast the potential of a cow based on her looks and heritage. Already making great inroads into the cattle-judging world, the couple developed a

business plan that — unlike most in the dairy sector — had little to do with staying put.

“A lot of stuff gets done when I’m judging shows,” Callum explains. “It gets me to a lot of places and I make a lot of contacts.” He says he’s judged as many shows as anyone he knows, and it’s taken him to 28 different countries so far.

The benefit to the business has been the vast clientele list he developed in his travels. Not that this was his conscious objective. Callum will tell you he was just appreciating good cattle and sharing his mutual passion with other breeders, which naturally led to making friends.

“For example, I might judge a show and make a cow first in her class or champion, and after the show, I’d go into the barn and buy her.” If the asking price was more than his budget would allow, but still fair, then he’d call a friend who would appreciate the animal the way he did and ask them to partner with him.

Callum says as a result, he moved quite a few famous cows in and then out of their little barn, including one World Dairy Expo winner. And again, the couple seemed to be on a winning path.

It’s hard to believe, then, with so much going in the young couple’s favour, this behaviour would lead to the end of Amlaird.

Gerald Halbach, a dentist living in Arizona, had bought a lot of show animals from Callum and Katherine. In 2003, he came to Quebec for a visit.

“Gerald had got the notion of maybe trying to own a place up here, and we just happened to be driving that afternoon when this place was just put up for sale,” recalls Callum.

Located only one kilometre from the farm where Callum had grown up, the place that they called The Lookout had deteriorated. At one time, it had been a popular spot for family picnics and “parking,” and the farmer who owned it used to let Callum collect bottles off the grounds. But now it was run down.

Callum confided to his dad that he was saving the money he made to buy The Lookout someday.

Hearing the story, Halbach asked Callum, “Why don’t we buy this and start from scratch?”

By 9 a.m. the next morning, the deal was done. A Continued from page 34 country-guide.ca 33

business

Continued from page 33 new prefix was adopted to reflect the new partnership and to acknowledge the property’s history. “We sold the other place, bought quota, and started to be real farmers,” Callum exclaims.

Even with an investor now on board and the opportunity to secure milk production revenue, the business stayed true to the couple’s original vision. “I’ve always figured if you’re going to do something, do what you love,” Callum says.

Unlike the large free-stall barns and the automatic feeding and milking systems that were being erected around the same time, the facility built at Lookout Farms was an old-fashioned tiestall barn that would only allow for 30 cows to be milked. They didn’t even install automatic takeoff units — now embraced by dairy farms across the country — because Katherine still prefers a more hands-on approach to udder care.

They also made the unconventional decision to purchase all the farm’s feed — hay and grain included — so they could dedicate all their land to pasture.

“This farm would not survive on just a milk cheque,” Callum says. “We didn’t have the machinery and the land area for the crops, so when I pencilled it all out, it was better to buy all the feed rather than rent land and buy machinery.”

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Every second year the couple formally reviews the way they run their business, but their practice of setting short-term goals and carefully evaluating how they spend their time is just as important.

Though he’s home more than he used to be, Callum still gets around to other farms four or five times a week. At home, Katherine and their three daughters care for 160 head, several of which are high-pedigreed heifers bound for bigtime show rings, and there’s a development plan to be carefully followed for most of them.

Unlike many modern dairy farms which have diversified over the last five years, the goal at Lookout is the opposite of the popular “be in and out of the barn as quick as you can” philosophy.

“I’m not mechanically minded, my love is working with cows and it’s my wife’s love as well, so we focus on that because that’s what we feel will make us money,” Callum says.

None of this is to say that specializing an operation is the only way to go, though. Callum assures me that the year BSE shut down the live cattle sale business, reducing their $2 million in gross revenue by more than 99 per cent, he was grateful for a monthly milk cheque.

All three daughters hope to continue participating in the farm in the future, though Callum believes the oldest two

are right to pursue careers that allow them more versatility. He’s pleased they’re applying the lessons they’ve learned on the farm in their own ways.

“Whether you’re a farmer or running a different kind of business, your clientele’s first impression is everything,” Callum says, offering as an example: “We go the extra step to make sure people are impressed when they come here, right down to the Facebook page. My daughter’s really picky about putting good pictures on it.”

It’s just one of many ways customer experience is emphasized in this family.

To ensure those impressions are lasting, any one of the family members may offer full disclosure to a potential buyer on an animal’s faults, may discourage a purchase which could prove to be a wrong fit with the buyer, and will likely offer a satisfaction-or-your-money-back guarantee.

Callum says that it has always been a greater goal for him and his family to be reputable business people than to make a quick buck off one-time customers. He says it may not be a strategy that will make them rich, but he believes that as long as they always can have food on the table, keep the bills paid, and live every day to the fullest, they’ll be on the road to success… a road that despite some occasional bumps will have no wrong turns. CG J u ly 2 0 1 4

sustainability special section

At this summer’s World Congress on Conservation Agriculture, Country Guide joined farmers, agronomists, researchers and policy-makers from 33 countries in Winnipeg to explore the health of the world’s soil. What we learned was shocking, Daunting, eye-opening… and encouraging.

cAn our farmers save the soil, and feed the world?

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Are america’s days as ag powerhouse eroding away? page 6

why has global no-till adoption hit a brick wall? page 11

Breeding for Tomorrow Syngenta commits to delivering sustainable farming solutions As a world leader in agri-business, Syngenta is keenly aware that farming must be carried out in a sustainable manner. Agricultural productivity must significantly increase in order to feed a global population.

With the added stress of lost farm land to urbanization, soil erosion taking its toll and water resources under increasing pressure, Syngenta believes that businesses – not just government – need to play a larger role in fostering long-term approaches to food security and sustainability.

In 2013, Syngenta launched The Good Growth Plan – six commitments developed to address the global food security challenge with specific, ambitious and measurable targets. The first of these commitments is to make crops more efficient, with the goal of increasing average productivity of the world’s major crops by 20 percent without using more land, water or inputs.

Syngenta advances in breeding Syngenta believes that breeding advancements are a fundamental means to achieving this goal and, as such, focuses much of its research and development investments in this area. Within Canada specifically, Syngenta has been progressing the science of cereal crop breeding for more than 40 years, developing not only new varieties but also advancing innovative breeding technologies and techniques.

“It is our ambition to transform cereal production worldwide by creating innovative solutions that set unprecedented standards for yield, quality and sustainability,” says Norm Dreger, Head, Cereals North America. “Our record of technology innovation, investment and involvement, in combination with future milestones, are compelling examples of our ability to propel the wheat sector forward in a sustainable way.”

Specific areas of cereal breeding that have a direct impact on sustainability include:

Pest-resistant genes Varieties that have inherent resistance to pests are an important component of a sustainable Integrated Pest Management (IPM) approach. Syngenta is currently focusing its breeding efforts on a number of areas of genetic pest resistance, including: wheat midge resistance; resistance to multiple races of rust, including ug99 wheat stem rust; and Fusarium head blight (FHB) resistance.

Genetic pest resistance provides a strong basis to protect the crop from pathogens and insects, as well as complements the use of foliar pesticides, allowing efficient use of active ingredients during the crop development cycle.

Agronomic enhancements A major Syngenta sustainability advancement has been the development of Agrisure Artesian® technology in corn hybrids.

“More than a decade of research, using procedures unique to Syngenta, produced corn hybrids that convert water to grain more effectively through the activity of multiple, naturally occurring genes that influence water use in corn,” says Darcy Pawlik, Head, Cereals Portfolio, Syngenta North America. “Hybrids with Artesian technology surpass traditional drought tolerance in corn by maximizing yield with available water in good conditions and increasing the plant’s ability to yield under water stress, thus making optimal use of available water resources,” he explains.

It is hoped that with further research and development, this technology might be adapted in other key crops to assist in water conservation as well as crop preservation in drought-prone areas across the globe.

Sustainable soybean farming Soybean breeding has also undergone significant growth in the last 10 years to accommodate the need for sustainable farming practices. One such change is the use of new tools like Marker Assisted Selection (MAS) – now a widely used technology in Syngenta breeding programs. “MAS helps to ensure the breeding of varieties that have higher productivity than those currently on the market, so growers can continue to produce better-quality and higher-yield soybean crops with fewer inputs,” says Don McClure, Research Scientist, Soybeans, Canada. “The breeding efforts of Syngenta also allow Canadian growers to supply lesser-known markets that are not supplied by larger countries like the U.S., Brazil or Argentina. And certain high-quality crops like Identity Preserved (IP) soybeans are contracted with a premium to Canadian growers – an additional value that contributes significantly to the sustainability of the soybean industry as well as Canadian agriculture in general,” he concludes.

With further agronomic developments on the horizon, soybean farming will continue to strive for sustainability into the future.

Integrated solutions Of course, advances in agronomy are only a small segment of a larger commitment to sustainability that will revolutionize the field-to-market cycle. As Syngenta looks toward the future of sustainable farming, developing integrated plans for growers that include elements such as agronomic best practices, new scientific discoveries and proven methods for indexing and applying the results will strengthen farming effectiveness. Syngenta believes that these first steps will lay the groundwork for using precious resources – land, soil and water – to maximum efficiency. Once that foundation is in place, growing more with less will ultimately sustain the world.

The examples mentioned demonstrate the Syngenta commitment to sustainability. Through breeding innovations over the past four decades, Syngenta has been successful in delivering sustainable solutions to growers across Canada. Recognizing that agri-business plays a vital role in fostering long-term approaches to food security and sustainability, Syngenta is devoted to ensuring that its big picture perspective always has sustainable production practices as its focus.

Always read and follow label directions. Agrisure Artesian® and the Syngenta logo are registered trademarks of a Syngenta Group Company. © 2014 Syngenta.

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sustainability C o u n t r y g U I D E s p eci a l s ec t i o n

Why we care

Farmers around the world know our soil is the stuff of life.

Now, all of humanity needs to stop treating it like dirt

By Gord Leathers

Soil conservation, said Montgomery, “is one of the most important issues that we face as a species.”

innipeg was the site of 2014’s World Congress on Conservation Agriculture where farmers, agronomists, researchers and policymakers from 33 countries around the globe met to discuss the world’s soil, as the stories in this special Country Guide supplement reveal.

In fact, Country Guide, and our farm readers, feel so strongly about the message, we made the commitment to become the official sponsors of the conference.

The quality of life of a projected nine billion people depends absolutely on how seriously we take the message at the conference, said University of Washington geomorphologist David Montgomery, author of the book with exactly that title — Dirt.

“As I studied erosional processes around the world, I came to see that soil is really a strategic resource that we don’t talk about at a societal level,” Montgomery said. “Global soil degradation is probably our most underappreciated environmental crisis.

“I want to address the question: why would a geologist write a book that argues that changing the way we farm, by adopting things like conservation agriculture on a global level, is one of the most important issues that we face as a species?”

It’s a serious issue with serious consequences if we don’t get it right. But amidst the dire warnings there’s also a sense of optimism. Panels of scientists in Winnipeg gave new insights into soil and they spoke of what it is and what it does. A group of experienced farmers from the American Midwest shared their stories of cover crops and how they use them to build their soil and care for their land. Delegates from Africa and India told of new machines and management techniques aimed at their smallacreage farmers.

All of this underlines the scope of a global problem that is being addressed at the local level.

And everyone knew the stakes. Conservation agriculture is about the preservation of soil so local industry may continue feeding a global market.

Many of us see the soil as nothing more than a mineral matrix that anchors plant roots. It’s an attitude that Montgomery says must change. He laughed as he spoke of the time he was a geology student and his professor said the most interesting thing about soil was that it had rocks underneath it.

Now he marvels at that same soil.

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“In the last few decades soils are seen as an ecosystem and the work that’s gone on in studying symbioses between the microbes, bacteria and fungi living in the soil and the nutrient transfers into plants has been amazing,” Montgomery said. “The things I learned in college about soil and fertility are increasingly out of date, and the idea that plants are actually secreting sugars into the soil to feed microorganisms and trade within a whole underground barter system is something I never learned.”

That barter system brings into play essential nutrient cycles for every continent’s ecosystems. It’s no accident that every eulogy ends with the phrase ashes to ashes and dust to dust. The soil is where the Earth recycles the bodies of all living things.

It starts with plants as they use photosynthesis to convert solar energy into chemical energy. Their roots condition the soil, opening channels for moisture infiltration while introducing the chemical energy that nourishes soil biota. Soil biota, in turn, go to work on the parent material, releasing inorganic elements like phosphorus and potassium that feed back to the plants. Then the plants use those nutrients to build tissue that animals consume, and when those animals die, they return their nutrients to the soil where the soil biota breaks their material down into molecules that plants rebuild into living tissue.

The soil is also the basis for that simplified ecosystem we call agriculture, where we grow specific plants and animals for our use. While agriculture is productive it also has the potential to be very destructive, and history records quite a series of catastrophes that should serve as warnings, like the collapse of Mesopotamia, the erosion of Iceland or the dust-bowl of the North American Great Plains.

“Walter Lowdermilk, 50 years ago wrote that we have the underlying hazard of civilization. By clearing and cultivating sloping lands we expose them to accelerated erosion by water or by wind and by doing this we enter into a regime of self-destructive agriculture,” Montgomery said. “Back in the 1930s Franklin Delano Roosevelt elaborated on this when he wrote that a nation that destroys its soils destroys itself.”

Agrarian societies seem to have a lifespan of 500 years, which is about how long it takes to burn out the soil. The good news is that, if given time, soil will heal itself and live again. The bad news is that it takes a lot of time, and we don’t have that luxury anymore.

“We need a different philosophy, a different J u ly 2 0 1 4

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approach,” said farmer, business magnate and conservationist Howard Buffet. “The day is over where you can bury your head.”

Conservation agriculture aims to keep our soils healthy and productive through three simple strategies.

We want to minimize disturbance by reducing or eliminating tillage, keep the soil covered with living plants or trash, and run rotations of three or more different crops.

In this way conservation agriculture is the environmental cornerstone of sustainable farming. Sustainability takes it the next step into the realm of our economic and social requirements. People are important too, and farmers have to make a living off their land. When they do, they provide the economic base that maintains their neighbours in the local towns as well as the surrounding cities.

It’s why conservation agriculture must be more than just ecological.

“It really has to be a cultural movement,” claimed Rene Van Acker, associate dean of the Ontario Agricultural College in Guelph. “I would argue that there are a number of elements required to achieve conservation agriculture, such as the desire to do it, the knowledge needed, political and market support, opportunities, co-operation and the technology to make it work.”

Mark Anson farms 20,000 acres in Indiana and Illinois along with his brothers and their sons, altogether making a board of 10 partners. Although the farm was profitable, Anson was not happy with the quality of the soil and, in general, he wasn’t happy with farming.

He discovered cover cropping and planting forage radishes or fall cereals as a way to get roots in the ground to nourish the soil after harvest and into the winter.

It’s not seen as conventional in North America, so it took a bit of convincing to get his family to try it out. It took a great deal of commitment to keep on going because, as with anything new, there were a few disasters along with some successes. In the end it was the desire to make it work that kept them going.

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Cover cropping makes a farming system a lot more complicated and it takes a great deal of knowledge to do it well. Anson and his family have spent the last few years learning about their soil and how to manage it better. It’s paying big dividends to him so he’s eager to spread the word and expand the knowledge. As more farmers understand the benefits, he hopes these systems will catch on. Although the principles are universal, however, the devil is in the details and each region, each soil type, has its quirks.

Regional quirks sometimes require unconventional technology. For example, the North American and European big-sky, big-iron approach is unsuitable in Africa or India. There the farms are tiny, and their machinery must reflect, said Brian Sims, an agricultural engineering consultant to the Food and Agricultural Organization at the United Nations.

In these places much of the work is done by hand on very small plots and many of the implements are still animal drawn. In these cases a small, handsteered two-wheeled tractor is much more suitable, but it’s not enough. Van Acker’s support component is just as important.

“It’s very difficult to introduce innovation to every single user,” Sims said. “It’s much more efficient to train service providers so that they know exactly how to operate the machinery, they can offer quality service and they understand the business.”

It’s a private-sector model that provides a great deal of local support. In addition to training farmers in conservation agriculture and mechanization there’s an incentive to train local people in finance and mechanics. This builds the community of small financiers, machine dealers and mechanics as well as educators. The farmers are now supporting the social infrastructure that, in turn, supports them.

These are all things necessary for long-term sustainability, looking to people’s economic and social needs as well as safeguarding the soil.

Farming has always been a tricky business. It’s because we grow plants in ways they simply don’t grow naturally. Disturbed monocultural systems lose topsoil, hemorrhage nutrients and generally waste precious potential.

The good news is that we’re looking to nature and coming up with new ways of thinking and new ways of farming that can lead to reliable methods of food, fibre and fuel production while building more resilient farming systems.

“Mother Nature is a very good manager,” concluded South Dakota State University professor, Dwayne Beck. “She’s been managing ecosystems better and longer than anyone else. She harvests the maximum amount of sunlight, she leaves very few nutrients and she doesn’t leak.”

Meanwhile, the U.S. government — to cite just one example — spends five times more on crop insurance than it spends on research. “Does that make any sense?” Beck asks. “Lack of commitment is THE problem.” CG

Said U.S. president, Franklin Delano Roosevelt: “A nation that destroys its soil destroys itself.”

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Day of reckoning How long can the U.S. compete in a world where other countries are working much more effectively at sustainability?

By Richard Kamchen merican farmers are getting beaten badly by the likes of Brazil, Argentina and Australia. All those countries are far outpacing the U.S. rate for adopting conservation farm strategies, says Howard G. Buffett, and he believes a day of reckoning for the U.S. may come sooner rather than later.

It won’t be pretty, Buffett told the World Congress on Conservation Agriculture conference in Winnipeg earlier this summer.

“We have a mindset that has kept us trapped in thinking like our dad or grandfather,” said the son of billionaire Warren Buffett.

Besides being son of one of the world’s most famous business icons, Howard Buffett is a highly regarded Illinois farmer and an outspoken advocate for conservation agriculture, and he is a philanthropist in his own right, serving as chairman and CEO of the Howard G. Buffett Foundation.

If U.S. farmers were as sluggish at adopting electronic technology as they are at sustainable farming, they’d still be carrying around those giant cellphones from the 1980s with the long antennas. “We have not changed our thinking nearly as quickly as we have changed our adaptation of technology,” Buffett said The reluctance to embrace conservation strategies is because some farmers are simply frightened by the unknown and shudder at the thought of modifying the way they’ve always done things, Buffett believes. Also, government policies have provided incentives not to change.

“In the U.S., we can afford to make mistakes and our kids don’t go hungry,” Buffett added. “We can afford to overfertilize and pay the bill and still get by. We can do things that aren’t perfect and be a little lazy… That just means we don’t have that pressure on us.”

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safety net supports, farmers are under pressure to be more creative about how to get the most out of their operations over the longest period of time.

“In Brazil, they could not afford not to figure out how to do it in a way that made them the most money, built their soil faster, and kept it from eroding,” Buffett said. “They’re 85 per cent no till.”

Australia faces constraints too, dealing with a limited amount of water in a harsh environment, so that country too has made big progress in adopting conservation practices.

But that doesn’t mean that the costs aren’t adding up in the U.S. As a result of slow adoption there, water is getting scarcer, and water quality issues are getting increasingly common.

Erosion rates during the last decade have also mirrored and sometimes exceeded those of the dust bowl, Buffett said.

“How we’ve gotten away with some of what we’ve gotten away with is amazing to me. Everybody has been talking about hypoxia in the Gulf of Mexico for 25 years but nobody’s been able to do anything about it, and all you have to do is look at a map and you know exactly where it’s coming from, who’s doing it. And we don’t have to change our practices!

“If you did that in any other profession,” said Buffett, “you would never get away with it. Never.”

“We’ve gotten a free ride for a long time.”

Buffett acknowledged numerous U.S. farmers have made changes, and that “farmers have adopted tens of millions of acres of cover crops.”

Such farmers are finding not only that conservation farming is working, and that the environment is better and the water is clearer, but they’re making more money too.

But many others have not gotten with the program, and they’re potentially at risk from the government coming in heavy handed and telling them how things will be done in the future, said Buffett.

Too many farmers are blind to the danger, he said. And of those who can see it, many believe they will be able to fight it off.

They’re wrong, Buffett said.

“The political landscape is changing in the United States, and it’s not changing in the favour of U.S. farmers,” Buffett said. “That will make all of J u ly 2 0 1 4

sustainability C o u n t r y g U I D E s p eci a l s ec t i o n

At conferences and from podiums all around the world, Buffett is preaching the same message. “Change, or be changed.” those institutions that have helped protect our situation and our rights less powerful and influential.”

So although agriculture has won the big battles of the past, that’s about to change. When large urban areas start to raise a fuss about things like their water, Buffett warned, they’ll get what they want.

“Numbers always win,” he said. “A city like Los Angeles for instance has the numbers to defeat farmers.”

Besides, farmers should also worry about government intervention, given so few of the politicians, bureaucrats and activities trying to influence agricultural policy actually understand farming.

“You’ve got policy-makers, politicians, bureaucrats and (certain) academics who’ve never had to grow anything in their life, who have never had to understand what it means to have Mother Nature kick your butt,” he said.

Fair or not, however, this is the choice that J u ly 2 0 1 4

farmers face: either do it yourself or have someone else tell you how you’re going to do it.

Not all farmers believe they’re facing what amounts to an ultimatum. “If you’ve gotten away with it for two or three decades and nothing’s happened to you, you tend to think, ‘At least in my lifetime, what do I need to worry about it for?’”

Nor is regulation the only threat.

Food processors and retailers are getting more powerful too, Buffett said. Soon, they’ll demand that their products are grown sustainably.

“A company like Wal-Mart is going to demand this, and when they demand this, then the ADMs, the Cargills the Bunges and the other people in the world are going to have to figure out how to do it,” said Buffett. “(Change) may come from regulation, it may come from corporate demand or consumer demand, but it’s coming.

“It will probably come slow enough that we have time to adapt to it, but you can’t sit still.” CG country-guide.ca S-7

SUSTAINABILITY COUNTRY GUIDE SPECIAL SECTION

WHERE’S THE CONSUMER? The public should have a voice, but there are risks

BY RICHARD KAMCHEN onsumers are the forgotten beneficiaries of ag sustainability, and forgetting to communicate with them can be one of agriculture’s most damaging errors, says farmer and philanthropist Howard Buffett.

“Consumers are our shareholders,” Buffett says. “At the end of the day, they do count, whether we like it or not.”

Nick Betts, who doubles as co-ordinator both of market development and also of sustainability for Grain Farmers of Ontario agrees, but notes that it isn’t a simple question.

Farmers need to make sure consumers are knowledgeable about what sustainability means on the farm, Betts told the recent World Congress on Conservation Agriculture conference in Winnipeg.

“Just because a consumer wants something that’s sustainable doesn’t mean what they want ‘is’ sustainable,” Betts warned. “It’s important that we come to grips with what that actually means. And then we need to effectively manage the system.”

There can be critical differences in how farmers and consumers define sustainability, he said. “If we do something to satisfy the farmers’ definition of sustainability, we’re not going to do the same for the consumer, and vice versa.”

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There’s another concern too.

While Betts believes farmers need to adopt a consumer-centric approach, he has found resistance from those producers who don’t want anyone telling them what to do. Surveys he’s seen reveal they’re concerned about third-party intervention, special interest groups, and unrealistic demands from the uninformed.

“Well, if we want uninformed individuals to be informed, we need to have a consumer-centric approach to understand where they’re coming from,” Betts said.

A d o p t i n g a c o n s u m e r- c e n t r i c approach means better understanding customer expectations, and Betts believes farm organizations can play a role here, while also educating and informing consumers about the sustainable impacts of their choices.

The upshot is, when customers ask if what’s being produced is sustainable, Betts said, the farming industry needs succinct, scientifically proven answers.

“We need to ensure that there’s understanding between the farmer and the value-chain partners, the special interest groups, academics, investors,” Betts said.

“We need to communicate effectively and this in turn will drive those best management practices and make those pillars of sustainability transparent.”

Too often, environmental groups,

societal groups and farmers butt heads, even though they essentially want the same thing — a sustainable future.

The difficulty starts with everyone being defensive. Betts believes a paradigm shift is needed in how all sides react and how they deal with each other.

We need that kind of perspective in order to see the big picture and where the common road lies.

But another one of the big drivers in sustainability will be economics, because if something doesn’t make economic sense, it won’t happen.

“Marketers have to come down from their 100,000-foot view, and the farmers need to come up and see where that common ground is,” Betts said, “because if it’s not economical for the farmers, the marketers aren’t going to get their product.”

Lee Moats, a pulse no-till grower out of Riceton, Sask., also preferred consumer signals to guide the way, especially in contrast to the option of sweeping standardized government regulations.

“I’m a believer that the marketplace ought to drive it more than it is,” Moats said. “I shudder when I see the well-meaning bureaucratic standard, but I really respond to consumer interest — sometimes misguided, but nonetheless.

“If I get that signal back to my farm, I’m very interested in responding,” Moats said, although he admits to a concern about trying to live up to “somebody’s latest flavour of the month checkbox system.”

Moats believes organic farmers might be able to provide some additional clues to the farming industry about how to achieve their goals.

Said Moats: “Maybe some of us nonorganic guys should spend a little time on some organic farms and see what they’re doing, because they may have a few hints for us.” CG

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SOIL CONSERVATION COUNCIL OF CANADA SOIL CONSERVATION COUNCIL OF CANADA CONSEIL CANADIEN DE CONSERVATION DES SOLS

The face and voice of soil conservation in Canada

The legacy and vision continues

T

he Soil Conservation Council of Canada (SCCC) has a rich history as the face and voice of soil conservation in Canada. In 1987, as a follow up to his 1984 Soil at Risk Report, the late Senator Herb Sparrow founded Soil Conservation Canada (SCC).

Their focus was soil conservation with protection from wind and water erosion, from excessive tillage and from nonagricultural development. Soil Conservation Week and the Canadian Conservation Hall of Fame were introduced to bring attention to the need for soil protection.

All of this continues.

Through time, SCC evolved into The Soil Conservation ‘Council’ of Canada (SCCC) to encourage stronger participation and more interaction by existing soil conservation groups and other stakeholders.

Following this change, the “Council” engaged in new activities and challenges.

In its constant search for excellence, the Council has re-assessed its role, its operation and its priorities so it can be most effective in the present time and circumstances. There will be a shift to take greater advantage of the Council structure. A strong emphasis on collaboration and cooperation by Council members will be helpful in addressing issues of common concern. There will also be new efficiencies and opportunities as this change unfolds.

As the SCCC moves forward, its principles and priorities have been strengthened in many areas as it builds on new information, new research and discovery, and addresses soil related issues in a timely way.

• The advocacy for soil conservation will remain the central cause but will now encourage a more active role in issues related to soil management. These include soil care, soil health and the affected water, air, habitat and natural areas.

• The Council emphasizes that soil conservation is a primary contributor to sustainable agriculture. History suggests that without sustainable agriculture we do not have sustainability on a social, economic or environmental scale.

• Science is the basis of agricultural progress, therefore, it is important to partner in scientific activity.

• Increases in agricultural production should be the product of practices that improve soil health and the environment.

PHOTO: DUCKS UNLIMITED CANADA

PHOTO: ONTARIO MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS

• Agricultural soil is a limited primary resource that needs protection for food production as it is coming under increasing pressure as population growth accelerates.

• Sustainable intensification of agricultural production on existing farmland is a priority because this reduces the expansion of agriculture to natural areas.

• The SCCC will provide the much needed national leadership role as a catalyst for cooperation and action, a forum for discussion of critical issues and a point for information exchange.

• All Canadians have a shared interest in and should participate in safe-guarding our soil because the benefits provide many environmental goods and services for the public good.

The Council continues to support the legacy and vision of Senator Sparrow while moving forward with new ideas, new vigour and new commitment.

PHOTO: SEED HAWK

www.soilcc.ca

Membership is encouraged for interested organizations, businesses, industry, government, researchers and individuals who wish to support sustainable management of our agricultural soils and the related environment. While farmers and farm groups will be core participants, society as a whole will benefit through participation and should play an active role. Members of the Council can take pride in their support of an organization that operates at the front line of the soil conservation cause. More information on SCCC and membership is available on the website: www.soilcc.ca

sustainability C o u n t r y g U I D E s p eci a l s ec t i o n

Precision sustainability Precision technology is teaching us some surprising eye-openers

By Richard Kamchen eriously? Can it really be better to till up and down some slopes instead of across?

That’s one of the conclusions from early work with precision agriculture in Australia, where the technology is proving a boon for field crop productivity.

It turns out that older technologies have blinded us to much of what’s really going on in our fields.

It also means, says Australian precision agriculture consultant Tim Neale, that while Australian farmers have notched some big gains in managing different soil types with no till and with controlledtraffic farming, there are a number of critical issues to overcome, including soil erosion, waterlogging, soil acidification and various man-made challenges.

On these issues and many others, precision farming will be part of the solution, Neale believes, although not always in the way farmers might think.

Neale, who runs PrecisionAgriculture.com.au, points out to some relatively inexpensive and simple

Yield monitors and precision technology are showing many yield issues are easier to fix than anyone believed

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changes for dealing with water drainage issues. In one example he cited, a farmer adding a couple strategic subsurface drains was well rewarded.

“His numbers showed that he made $100,000 in two years from doing that change and it was about a $5,000 drain,” Neale said.

Soil acidity is another hurdle for Australian farmers, but instead of just blanketing fields with lime, Neale said variable-rate lime applications have proven to save massive amounts of lime simply by taking advantage of grid-based in-field pH sampling.

Variable-rate nutrients have also been shown to be big production boosters and cost savers.

In a field test of a variable field with good and poor soils, chicken litter was spread on one side with both types of soils and none on the other. A small rate of chicken litter was applied — only two tonnes per hectare — but the results were tremendous.

“When we ran the yield monitor over this, the yield in the poor soils actually matched the yield of good soils,” said Neale. “That is extremely exciting, because we’re actually at a point now where we can reduce the variability of that field considerably just by adding manures strategically to these poor areas.”

But one-size-fits-all solutions won’t provide the same results and may even be wasted, given that all fields are variable.

“Everyone wants to start precision agriculture with variable rate. I think that’s the last thing you want to do,” said Neale, who urged producers first to understand their farm’s issues and think of ways in which to alleviate them. “In some cases, it might be a soil-depth issue, so putting more nutrients on is a complete waste of time.”

The sleeping giant that farmers face, however, is the person in the mirror. Are farmers creating their own problems?

Said Neale: “We see all the time in satellite imagery and yield maps these things that people are doing during their normal activities in the field that are causing huge variability… That contributes significantly to the variability of cropping systems.”

Neale cited the example of poor fertilizer distribution that was costing the farmer in question $80 an acre. Fortunately, man-made mistakes are often the easiest and cheapest to solve.

“Man-made problems represent a large portion of where we see losses,” said Neale. “But it’s much easier to fix a problem with something you stuffed than fixing up a whole soil type.” CG J u ly 2 0 1 4

sustainability C o u n t r y g U I D E s p eci a l sec t i o n

The soil shock Only 7.1 per cent of the world’s arable land is farmed no till

By Ron Friesen f conservation agriculture is so great, why aren’t more farmers doing it? It’s a question that surfaced repeatedly during panel discussions at the recent World Congress on Conservation Agriculture in Winnipeg.

Presenters from countries spanning the alphabet from Australia to Zambia left little doubt that conservation agriculture is a worldwide movement.

Zero tillage is growing rapidly. In some regions of Western Canada and Australia the adoption rate is over 90 per cent. In other regions, other integrated farming systems are catching on too.

But we aren’t anywhere near a global tipping point.

Speaker after speaker extolled conservation agriculture as a means of maintaining soil quality while improving productivity. Josef Kienzle, an agricultural engineer with the United Nation’s Food and Agriculture Organization, said conservation farming, when done right, can increase crop yields, decrease production costs, produce higher profits and result in better livelihoods. As an example, he said reduced tillage can chop power requirements by 50 per cent, allowing for the use of smaller, more efficient machines on small holdings.

Yet as Yash Dang, a senior soil scientist with the Queensland Department of Science in Australia pointed out, only 7.1 per cent of the world’s arable land is no till. Even in Australia, the system appears to have plateaued, and some growers there are starting to talk about going back to tillage.

Such talk is heresy to soil conservationists, but it’s reality to producers who are confronting not only herbicide-resistant weeds but also increases in soil- and stubble-borne diseases.

“Strategic tillage is one of the tools in the tool box,” Dang said during a panel discussion on sustainability.

The risk of a possible slowdown in conservation agriculture comes at a time when the world faces a potential crisis in food production. Statistics presented during the conference showed the global population is projected to increase from the current 7.2 billion to 9.6 billion by 2050.

Feeding those teeming numbers will require a 60 per cent overall increase in food output, and in order to meet that target, crop yields must increase annually by 1.38 per cent globally, and by 1.87 per cent a year in developing countries.

But, as Kienzle noted, the world’s annual growth in crop yields is actually slowing. Currently it stands at 1.5 per cent. In 1960 it was 3.2 per cent. At the present rate, the annual increase by 2050 will be just 0.8 per cent — far short of the actual requirement.

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Conservation tillage is supposed to save soil, preserve yields and increase farm profitability.

So why has the global move toward no till stalled so far short of the goal?

Add to that the vagaries of weather brought on by climate change — crippling droughts in some regions, devastating floods in others — and the need for agricultural sustainability becomes even more urgent.

“Conservation agriculture is and always will be a fundamentally important movement,” said Rene Van Acker, a University of Guelph plant scientist.

“It is a non-optional movement. It has to happen.”

But, as speakers acknowledged, there are roadblocks on the path toward adopting conservation agriculture. Constraints range from the lack of infrastructure and training in developing countries to human resistance to change, which can happen in any nation.

“There are a lot of things that are smart things to do, and a lot of things that are better things to do that people don’t do. It’s just human behaviour,” Howard Buffett, chairman and CEO of the Howard G. Buffett Foundation, a private charitable U.S. organization, said at a press conference during the conference.

“You do something a certain way. You’ve done it for years that way,” Buffett said in an effort to identify what he felt was the crucial question. “Why would you change?”

Continued on page S-12 country-guide.ca S-11

sustainability C o u n t r y g U I D E s p eci a l s ec t i o n Continued from page S-11 Above everything else, said Van Acker, the biggest barrier to adopting sustainable agricultural practices is a chronic problem with farm income.

He presented statistics during a panel discussion to show that, while farm cash receipts in Canada have increased over the decades, realized net farm income has remained relatively flat because of escalating input and operating costs.

Van Acker said farmers need opportunities to pursue sustainable practices and diverse cropping systems. But the reality is that, in industrialized countries, farmers are in a costprice squeeze. How can they adopt diverse rotations when they are under increasing pressure to increase cash flows in order to stay ahead of rising costs and narrowing margins?

The story is the same the world over, whether you’re farming thousands of acres in Canada or a single hectare in Bangladesh, Van Acker said.

“Agriculture is an economic enterprise around the world,” Van Acker repeated. “Whether you’re a smallholder farmer or a large-scale farmer, you have similar burdens in that respect.”

Van Acker said producers who adopt diversified and integrated farming systems do so either out of personal conviction or by capturing opportunities for higher returns from the marketplace, such as organic agriculture.

Farmers have always responded to the marketplace and will continue to do so if given a good enough reason, Van Acker added. The whole zero-tillage movement in Western Canada was driven by farmers in response to soil erosion brought on by a series of dry years in the 1970s and 1980s.

The eventual drop in the price of glyphosate when the patent for Roundup ran out encouraged zero till even more.

Van Acker said governments have a role to play in giving producers opportunities to explore new practices. That requires research funding to provide farmers with a scientific base to pursue sustainability.

Unfortunately, government policies can be counterproductive to conservation agriculture. Many criticize the U.S. ethanol program because it subsidizes corn production and encourages intensive cropping, which then contributes to soil erosion in the Corn Belt.

Jodi DeJong-Highes, a regional extension educator at the University of Minnesota, agreed government policies, which tend to favour corn and soybeans, are important factors affecting conservation agriculture. Another factor is land ownership. DeJong-Highes said farmers who own the land may be more inclined to practise good stewardship than those who rent it and are only interested in getting as much return out of it as possible.

In the end, the public may decide the future of conservation agriculture. In the United States, public concern about damage from run-off agricultural chemicals in Chesapeake Bay and the Gulf of Mexico could result in government regulations on fertilizer use. A growing public interest in how food is grown and how animals are raised could also extend to how the land is farmed. That could force farmers to treat their soil more sustainably.

“At the end of the day,” said Van Acker, “it is the demands of society that drive our agriculture. CG S-12 country-guide.ca

Saving Iowa Stronger commodity prices are threatening many soils. But not on every farm

By Ron Friesen he topsoil of one of America’s largest agriculturalproducing states is vanishing at an alarming rate, with wind and water erosion directly linked to the cropping practices and to the fencerow-to-fencerow philosophy that farmers have turned to in order to cash in on high prices for corn, soybeans and other crops.

Around Iowa’s western and southern edges, soil losses can exceed 50 tons per acre a year. In the southwestern region losses average 10 to 20 tons per acre annually.

In the middle of that region, however, there is a 3,100-acre commercial farm. Its annual soil loss rate is zero.

It’s where Seth Watkins lives with his family on the farm established by his great-grandfather James Shambaugh in 1846.

Sometimes, Watkins admits, he’s pessimistic when he looks across the landscape at farms that are suffering severe erosion, and he wonders about the future of agriculture in his home state.

“I’ve got a child who’s going to want to farm,” Watkins said during the recent World Congress on Conservation Agriculture in Winnipeg.

“If she wants to own it, we need to make sure it’s there for her,” Watkins said.

Fortunately, based on his on-farm experience, he believes that it’s a realistic goal.

Watkins was part of a plenary panel discussion about regional perspectives on agricultural conservation in North America.

His views are similar to those contained in a 2011 report from the Environmental Working Group, a private non-profit U.S. organization. It says Iowa farms are losing topsoil up to 12 times faster than the U.S. government will admit.

The USDA’s Natural Resources Conservation Service (NRCS) has estimated soil and water erosion in Iowa averages 5.2 tons per acre of soil a year, slightly higher than the supposedly sustainable annual rate of 5.0 tons.

But the EWG report, titled Losing Ground, found that in some regions of Iowa as much as 64 tons of soil are lost from each acre of land every year.

The report raises a grim warning about the misuse of the Corn Belt’s fertile soil, which took millions of years to accumulate.

“From the dust bowl of the 1930s to the barren moonscapes of today’s Haiti and Madagascar, history is littered with evidence that what nature has provided, unwise practices and policies can rapidly squander,” the report says.

The EWG report, based on research by Iowa State University scientists, paints a shocking picture of what’s happening on Iowa’s farm fields.

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sustainability C o u n t r y g U I D E s p eci a l s ec t i o n

It says farmland in 440 Iowa townships encompassing over 10 million acres eroded faster in 2007 than the so-called sustainable rate cited by NRCS. In 220 townships totalling six million acres, the soil loss was twice the sustainable rate.

The EWG report also says the incentive for farmers to maximize production at the expense of the land is bolstered in part by government programs.

Those include subsidies for corn required to supply ethanol plants, four of which are within 60 miles of Watkins’ farmyard. Other farm policies that encourage farmers to plant crops on fragile land are also blamed for accelerating the rate of soil loss.

The report says soil loss and run-off are aggravated by “gullies” that reappear during heavy rains on rolling land where farmers have previously tilled, channelling run-off water off the field, complete with soil nutrients.

Watkins said the loss of excess nutrients from farmland is so bad that Iowa today is the secondlargest contributor of nitrogen and the third-largest contributor of phosphorus to the “dead zone” in the Gulf of Mexico, where the loss of oxygen caused by agricultural chemicals kills marine life.

There are other more subtle effects of soil degradation flying under the radar. Watkins said surveys show a third of the Iowa’s natural plant and animal species — songbirds, wildflowers and even earthworms — are classified as “conservation concern” — the first step on the path to being declared endangered species.

That’s the bad news. Now the good.

Watkins is part of a small but slowly growing number of Iowa farmers who are forgoing conventional agricultural methods to practise land J u ly 2 0 1 4

stewardship instead of just aiming for increased production.

Watkins, his wife Christy and their children Spenser (12) and Tatum (nine) operate Pin Hook Farm near Clarinda, Iowa. They own 500 acres and rent another 2,600 acres.

The family’s conservation methods include minimum tillage, cover crops, wildlife set-asides, riparian buffers, terraces and ponds to retain water on the landscape. The farm’s 550 beef cows are lateseason calvers — a strategy which Watkins said conserves fuel. He also practises a form of strip farming which integrates native prairie grass into his cropland.

The results are evident in the soil. Watkins says soil erosion on Pin Hook Farm is zero while precipitation and nutrient retention are higher than on conventionally cropped farms.

“We find that, if we use each acre to its best use, it gives the best long-term return.”

But doing this is the easy part. Watkins says it’s not all that hard to switch a farm to no till and cover crops. Instead, the hard part is to get other farmers to undergo a mindset change away from productiondriven farming and toward sustainable ag, he said.

“We have to show them that there are better ways.”

Watkins is a realist. He knows farmers can’t go back to the horse-and-buggy days of subsistence living on a 160-acre holding. But, as he considers the damage that intensive agriculture is doing to Iowa, Watkins believes taking better care of the soil is the answer to an improved quality of life.

Said Watkins: “It’s good for my business, it’s good for my community, it’s good for my state.” CG

Catch-22: The all-out race to grow more highprice corn has damaged Iowa’s soils, making its farms more vulnerable to drought and yield loss

country-guide.ca S-13

CANADA’S OPPORTUNITY TO FEED GROWING POPULATIONS As Canadians, we enjoy one of the world’s most abundant, diverse, safe and affordable food supplies. Our health, quality of life and longevity are thanks to a host of factors: modern healthcare, safe and affordable food and water, and our stability – economically and socially. Much of this quality of life is owed to advancements in food production. Livestock production over the last 50 years, has also benefited dramatically as a result of innovation, technological development and implementation.

WHAT IS SUSTAINABILITY? It is often described as having three interrelated components T

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THE FACTS 9 BILLION It is estimated that the world’s population will reach 9 billion by 2050.1 3 BILLION The growing middle class will expand by 3 billion, mostly living in urban centres.2 60% INCREASE The United Nations Food & Agriculture Organization predicts a 60% increase in demand for meat, milk & eggs by 2050.3

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Critics stress livestock production’s need to reduce our environmental footprint, and raise food sustainably. At the same time, we must optimize animal health and sanitation; disease detection; animal nutrition; comfort; breeding and genetics; vaccination; parasite control; animal housing and productivity. Continued use of existing and new animal health products in Canada and around the world are critical components of this sustainable production.

The Food and Agriculture Organization of the United Nations (FAO) reports that added farmland will help produce only 10 percent of the additional food the planet needs by 2050, and 20 percent of that food will come from increased cropping intensity.4 Accordingly, the FAO concludes that 70 percent of the world’s additional food needs can only be produced with new and existing agricultural technologies.5 We believe that through the continued development and use of innovative crop protection and animal health products and technologies, a sufficient food supply can be ensured for a growing population. More food will be produced using less land, water and fossil fuels. Natural habitats will be conserved along with farmland, housing and parkland. Use of safe, and modern animal health management tools and practices will continue to contribute to sustainable agriculture while supporting animal well-being and food safety.

ANIMAL HEALTH TOOLS HELP PRESERVE NATURAL RESOURCES With per capita meat consumption rising, global meat production has already tripled from the 1970s, and risen by 20% since 2000 alone6.

By improving production efficiencies, for both crops and animals, less land, feed, water and fuel are required to produce our food. Animal health technologies while just one component of livestock management, provide a cumulative

health effect through disease prevention, control and treatment. The use of vaccines and animal pesticides lowers animal stress attributed to disease and pests. This combined with improved animal nutrition, comfort, housing and veterinary care all factor into improved production outcomes, animal well-being and a safe and affordable food supply.

MODERN LIVESTOCK MANAGEMENT PRACTICES REDUCE ENVIRONMENTAL IMPACT

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*Source: For details in regards to the sources used for this advertorial, please contact CAHI at www.cahi-icsa.ca

WE’VE ONLY GOT ONE PLANET. LET’S USE ITS RESOURCES WISELY! ALT HE

Almost one billion households worldwide rely on livestock for their livelihood.13 With increased urbanization, this number will decrease, requiring increased outputs from fewer farmers. The time is now to make choices on how we want to grow, share and consume our food to ensure it is done in a cost effective and sustainable manner. Sustainable modern livestock production that incorporates innovation and acceptance of new technologies, can feed the growing global population.

Choice between organic and conventionally raised food is a luxury we as Canadians have. However, only through the efficiencies of modern production practices will we meet our environmental, social and economic commitment to ensure each of the 9 billion has sufficient protein in their diet.

Due to innovative animal health techniques, a baby chick is vaccinated to prevent a number of diseases and illnesses that have the potential to be devastating to the bird’s health before it is even hatched. However, the last decade of change in certain regions to egg production practices demonstrates how the removal of innovation, changing practices and social pressures have dropped global hen productivity. For decades, production increased 1¾ eggs/year. Since the late 1990s the productivity trend has reversed due to disease, changing practices and the removal of innovation. The decrease is 0.8 eggs per year. To compensate for these losses, demand is being met by adding hens. On this path, hen numbers will need to double to meet the anticipated demands in 2050. However, just one more egg per hen per year helps meet demand and requires 4 billion fewer hens. By using innovation, not adding hens, we would save 113 million tons of feed; 65 million acres of land and 74 billion gallons of water.12

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The Path Forward…

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Despite a doubling of dairy cow productivity in the last 50 years, the industry is unable to keep pace with population growth, with 14% less milk available now per person globally, than in 1961.9 By embracing modern production tools and technologies, future demands can be met by increasing outputs per animal. Some estimates indicate that by using today’s technologies to produce a half a glass more per cow, dairy farmers could annually save 66 million cows, 747 million tons of feed and 388 million acres of farmland — the size of Alaska and 618 billion gallons of water — the annual domestic use of Germany, France and the UK combined.10

In 1959 it took eight pigs — including breeding stock to produce 1,000 pounds of pork. Today, it takes just five pigs. And hog farmers today use 78% less land and 41% less water than they did 50 years ago.11

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Improvements in the way North American cattle are raised and fed have significantly reduced this sector’s impact on the environment. A comparison of cattle production in 1977 and 2011 showed an increase of 13% more total beef from 30% fewer animals while yielding a reduced carbon footprint of 16%.7 Similarly, through improved genetics, feed, housing and the use of innovative animal health technologies (vaccines; hormones; antibiotics and production enhancers such as beta agonists) one pound of beef raised today (compared with 1977) uses 19% less feed, 33% less land, 12% less water and 9% less fossil fuels.8

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HEALTHY ENVIRONMENT

WE CAN DO IT!

sustainability C o u n t r y g U I D E s p eci a l s ec t i o n

Sustainability on the hoof Across Canada, livestock must be part of a healthy agriculture

By Richard Kamchen orages and livestock can not only help you manage your soil for sustainability, they can also help you manage the evolution of herbicide-resistant weeds, says Martin Entz, professor of natural systems agriculture at the University of Manitoba.

No-till farming has come a long way and has brought a lot of change to agriculture. But there’s one big change that it hasn’t made.

In most parts of the country, farming remains predominantly an annual grain-based system.

Now, the resilience of that system is in doubt, Entz said at the recent World Congress on Conservation Agriculture in Winnipeg.

Weather had been at the top of the list of things challenging such farms. Drought in the early 2000s destroyed no-till farms in Montana, and the wet periods in Canada and elsewhere have played havoc on conservation farms, Entz said.

“When we look at the challenges, we think that perennial plants would be wonderful,” Entz said.

He points for instance to the farmers in eastern Manitoba and in the province’s Interlake area who experience excess water on fragile soils.

They have dealt with those challenges by putting more ground into alfalfa.

“They grow that because they know they need to deal with this water there. Planning for the wet conditions, this is a wise move,” Entz said. “The beautiful thing about having the alfalfa seed production is it mimics the native prairie plants, and that’s never a bad thing.”

Incorporating perennial forages into grain rotations is very effective in a number of ways, including providing superior yields, reducing nitrate leaching, and offering significant weed control and greater resilience to extreme weather.

But what are you supposed to do with all the alfalfa if you grow it?

Entz’s answer is straightforward: Feed it to livestock.

“All of these challenges bring us to the topic of livestock integration. We can’t avoid it. We can drain that salt land, we can try to tile drain that wetS-16 country-guide.ca

land, but things are changing,” said Entz. “We’ve had the warmest May in the history of the planet this year and May has been a particularly warm month for five years now. That means more rain during planting.”

Entz extolled the virtues of forages for ruminants, saying when livestock eat grasses, “things with cell walls that are tough, they actually make better milk, better cheese, better meat.”

So the shift from grains to forages for ruminant production has not only environmental and agronomic benefits, it has human health benefits too.

“And that to me is exciting and it’s a way of getting people’s attention. And maybe consumers are going to start demanding this more and more,” Entz said. “That would be great for the landscape, and I think it could be good for farmers.”

But do farmers believe this?

“We’re still focusing on expanding soybean production in this province. We think it’s good for agriculture. Well, it may be good for agriculture, but it’s also good for agriculture to think about producing food that’s really good for people. And we can do that using those natural systems.”

Removing perennials has been detrimental to agrology and weed resistance, and removing nutrients from forages through haying but not returning those nutrients with manure is damaging too. Entz recommended leaving animals on fields so those soils capture more nutrients, which will then result in greater yields.

Entz repeated some old wisdom from his German ancestors, saying that if you want to see how good a farmer is, go look at his manure pile.

In the West, winter grazing is another good idea, especially considering the Prairie landscape is frozen for about five months of the year.

“We accumulate a lot of carbon and then soil biota stops working because we have no heat. That’s a problem because sometimes we want to process that carbon, especially in a conservation agriculture system,” said Entz. “And the beautiful thing about livestock is those rumen, they are nice and warm. It’s why we think of the rumen as portable soil.” CG J u ly 2 0 1 4

Legal

When businessmen become directors If your farm is incorporated, are you sure you are meeting your legal obligations?

By Naomi Loewith, lawyer at Lenczner Slaght hen a business transitions from a sole proprietorship or partnership to a corporation, the move requires a shift in how decisions are made. In particular, making decisions solely as a businessman (or woman, of course) is different from making decisions as a corporate director, so it is important to know how directors’ decisions will be judged. In addition, it is helpful to understand the legal standard for assessing a conflict of interest, and to know about one tool — the oppression remedy — that a court may use to rectify director misconduct.

The guiding principle The guiding principle for all directors is to act “honestly, in good faith, and with a view to the best interests of the organization.” This itself can require a shift in thinking: the sole proprietor of a business can make decisions that best serve his own interests, but a director’s duty is to put the corporation above himself. So, for example, deferring taxes may benefit the owner but increase taxes payable by the corporation; approving such an action could be a breach of the director’s duty.

Where a court is asked to assess a director’s decision, the judge will defer to the business judgment of the directors, as long as the decision “lies within a range of reasonable alternatives.” That is, a court will not criticize a decision — even one that led to a bad outcome — simply because another reasonable person would have made a different decision. Any decision that was on the spectrum of appropriate choices in the circumstances is acceptable.

A director’s decision is more likely to be on that spectrum of reasonable choices where the director can demonstrate due diligence in making that decision. Directors have a duty to inform themselves about the issues being decided, actively ask questions for more information, and consult outside professionals where independent advice is needed. Directors must also be aware of potential problems that may flow from their decisions, and be proactive in preventing or mitigating those harms.

In determining the best interests of the corporation, directors must also consider the impact of their decisions on a range of the organization’s stakeholders — including investors, employees, suppliers, creditors, customers and members — but ultimately the organization’s interests reign supreme.

Recent political events have brought conflict of interest concerns into public discourse. For a corporate director, a conflict of interest exists where a director has a “material interest” in a proposed transaction or decision. Any nontrivial benefit could be a material interest. That interest need not belong to the director himself — it could extend to family members or even friends.

Where a director believes he has a conflict of interest, he should disclose the nature of that conflict as soon as possible, j u ly 2 0 1 4

and refrain from participating in deliberations on that topic. To avoid the perception of pressuring other directors, it is also prudent to leave the room during the discussion.

When a director is an owner or employee in addition to being a director, he will by definition have an interest in many decisions.

Those decisions should be made with advice from outside professionals, whose recommendation, review or blessing can often shield a decision from attack. Thus, for example, an accountant should give an opinion about the fairness of proposed salary increases.

Where a director fails to identify and disclose a conflict of interest, that director might be liable to the organization for any profits made from the transaction. Similarly, the decision at issue might be overturned, although before doing so a court would assess whether the transaction was fair and reasonable to the organization.

The oppression remedy In some cases, people who are unhappy with a director’s decision can challenge that decision in court. Statutes in most provinces provide a tool for directors or shareholders to attack decisions that were “unfairly prejudicial” or taken in “unfair disregard” of one person’s interests. This “oppression remedy” is most often invoked for closely held corporations (especially family companies), but is available for the decisions of any corporation.

Decisions that are vulnerable to a court challenge under the oppression remedy usually involve conduct that is abusive, harsh, self-interested or coercive. It may relate both to the substance of the decision, and to the procedure followed in reaching the decision.

To succeed, a shareholder or director who brings an oppression action must show that he had a reasonable expectation that a corporation or its directors would behave in a particular way, based on the relationship between the parties, past practices, promises made, or other factors.

Where a complainant can demonstrate that corporation failed to meet his reasonable expectations, which caused him harm, the court has a wide range of options to help the injured party. For example, the court can set aside or amend agreements the corporation has made, compel directors to take certain steps, or order that a party’s shares be purchased at fair value by the corporation or another shareholder. The court will take a broad approach and find the best way to undo the harm caused by the oppression.

While the oppression remedy can be both extreme and expensive to pursue, directors should keep all these principles in mind when making decisions and trying to act in a corporation’s best interests. CG Naomi Loewith is a litigator at Lenczner Slaght in Toronto.

She regularly advises boards of directors, and has brought and defended legal actions about corporate decision-making. country-guide.ca 35

business

The future of futures Will the West ever get realistic cereal futures?

By Lisa Guenther, CG Field Editor

hey used to call Winnipeg the “Chicago of the North.” In fact, in 1943, wheat contracts traded on Winnipeg’s Grain Exchange Building surpassed the wheat volume in Chicago.

But that lead was short lived. The Second World War effectively killed wheat futures in Winnipeg, ushering in the era of the Canadian Wheat Board’s (CWB) single desk.

Just because you can grow a crop, it turns out, doesn’t mean that a fast, fair and open way to sell it will evolve too, even if you can grow a lot of it.

It’s a lesson the West is learning again.

Until a few years ago, futures for feed wheat and barley, oats, peas and rye were all available through Winnipeg. But these days, canola is the only active commodity futures contract north of the 49th.

Today the Winnipeg exchange is known as ICE Futures Canada, a subsidiary of the Intercontinental Exchange (ICE). The western Canadian grain industry is in the midst of tumultuous change once again.

Yes, the exchange has a chance to grab hold of those lost futures markets.

But whether the Winnipeg Exchange rises again is no simple story.

Blue says a futures market provides farmers with flexibility and a way to diversify pricing.

“You can sign up and lock in a price in advance of delivery without having a delivery commitment and therefore still not have the fears… of having a production shortfall and therefore having to buy out of a contract, which a lot of farmers really, really dislike,” says Blue. If production is wiped out unexpectedly by hail, for example, “you could go back to your futures position and easily remove the portion you’re now overpriced with.”

But helping western Canadian farmers hedge risk isn’t an easy task. Blue is disappointed in the lack of functioning futures markets for crops north of the 49th parallel. A few years ago the Winnipeg Exchange had future contracts for canola, feed barley, feed wheat, flax, oats, peas, and rye. Today canola is the only crop that trades with any volume in Winnipeg.

Futures markets to manage risk An irony of the story is that it is occurring at the very time that farmers are getting more expert at marketing. Futures trading used to get scoffed at as mere gambling, but more sophisticated marketing strategies mean they can reduce risks, not increase them.

“They’re not that complicated,” says Neil Blue.

Blue was farming in the early ’80s when he noticed strange things happening in the grain markets. Specifically, the same grain, coming from the same bin, was graded differently from spring to fall.

That phenomenon spurred Blue to learn the ins and outs of the markets. Paying attention to marketing in the ’80s, “which was a really tough period in farming, meant the difference in some years between losing money and breaking even,” says Blue.

Blue still farms in the Vermilion area of northeastern Alberta, though he’s quick to point out his operation isn’t as large as neighbouring farms. He’s also worked as a market specialist with Alberta Agriculture and Rural Development since 1994, teaching courses to help farmers get the most bang for their buck out of the big commercial markets such as hogs, cattle and major grains.

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Photography: gord gilmour

business “It’s quite frustrating now when we do these courses and all we have to talk about are U.S. markets,” says Blue. “It doesn’t encourage farmers to sign up for accounts, either.”

Farmers can, and some do, use futures contracts from U.S. exchanges. But the exchange rates complicate those transactions, says Blue.

Blue isn’t the only one who sees problems with a dearth of western Canadian futures markets.

“The constituents that suffer the most in this type of environment are the producers because before, they used to have two sources available in terms of price discovery,” says Hugh Benham, trader and owner of Market Mentor.

Trading is in Benham’s blood. His great-grandfather, E.L. Drewry, was one of the first members of the Winnipeg Exchange. Benham started with the exchange in 1989, handling commercial accounts.

“It was with a little bit of sadness that the open outcry came to an end,” says Benham, but he adds electronic trading allows him to work from anywhere. Benham left the exchange in 2006, and these days he works from Canmore, Alta.

Benham has worked for several cattle feeders in Alberta. He also wrote a discussion paper for the Alberta Cattle Feeders looking at the possibility of revitalizing Western Barley Futures.

Although five ICE barley contracts traded in early June, Benham says five contracts of open interest

Could cereal futures give producers more control in an industry where they can’t control logistics?

don’t add up to price discovery. These days feeders’ and producers’ only option for price discovery is to look at the cash barley market, he says.

Rough transition As the CWB’s single desk came to an end, ICE introduced a suite of wheat products, including a milling and durum wheat contract, plus a barley futures contract. But the new futures contracts are not trading.

The last two years have been difficult ones to launch a new futures contract, says Brad Vannan, president and chief operation officer of ICE Futures Canada. Vannan is a 30-year veteran of the grain business. Before joining ICE in 2008, he worked as the vice-president of merchandising and transportation at Agricore United.

Low risk, a stable price, fluid transportation, and little difference between different classes of wheat didn’t add up to success for the new ICE contracts in the first year, Vannan says. The Winnipeg contracts were designed to differentiate the Canadian market from other North American markets, he explains.

And grain industry players were busy adapting to the new marketplace following the single desk’s demise, Vannan adds. Participating in the new market was more work than participating in one of the existing markets, Vannan says, giving commercials and other players little incentive to pick up the new contracts.

This last year of bin busters and transportation bottlenecks was no kinder to the Winnipeg futures contracts. By the time market participants realized the extent of the logistics pileup, it didn’t matter where they hedged their grain, says Vannan.

“I could hedge in Kansas City. I could hedge in Chicago. I could try Winnipeg. But none of them are really going to work because the transportation system is not functioning correctly,” says Vannan.

The ICE wheat contracts do have supply on their side, Vannan says. Wheat production is similar to canola production in Western Canada. “So we felt that there’s enough depth there to facilitate a contract.”

But a contract also needs a breadth of companies willing to use it, says Vannan. “And that usually comes over time. Everybody’s not going to jump in at the exact same time. You’ll have early adapters and then if it proves to be successful, it’ll evolve and more people will join in.”

Drawing people away from incumbent markets is difficult, Vannan says. Within North America, there are three wheat contracts, each over 100 years old, each catering to a specific wheat variety, Vannan points out.

Benham says he thinks there’s interest among some players in reviving barley futures, “but is there an incentive for the commercials? Probably not.”

Commercial grain companies can lay off that risk in Chicago, he says.

But Benham is cautious about laying blame at the commercials’ feet. They would likely use the Continued on page 38

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business Continued from page 37 contracts if there was more open interest, he says.

Open interest measures the number of outstanding contracts at the trading day’s close, and is a sign of a healthy contract.

Commercials and farmers aren’t the only players needed to make a market successful, says Blue. These contracts need market makers, or firms that buy, then immediately sell from their own inventory or find an offsetting order.

Lots of trading activity also adds up to liquidity, which marks how easily an asset can be bought or sold in the market, says Blue. Liquidity makes for a robust market.

Contract design plays into it, too.

ICE Winnipeg has industry committees to help review contract rules, Vannan says. And, he adds, the exchange aims to create relevant, useful contracts. Contracts that favour one side or the other won’t trade.

Although a small percentage of the contracts are delivered on, “the process behind the delivery goes to the very core of what makes that futures contract functional,” says Vannan.

It’s essential to maintain a strong connection between the futures price and the cash price for grain, says Vannan, “so that the hedge remains relevant.”

Blue had a few calls from farmers this past winter wanting to open a sell futures position and deliver canola against it. A weak basis level makes that option more attractive, he explains.

But Blue says it’s not economically feasible to deliver canola on a sell futures position because delivery locations can levy an administration fee at their discretion. He’d like to see a way to have economically feasible delivery against the canola contracts, or have it cash settled against a three-day rolling average or some other cash index.

Both Blue and Benham are critical of the barley contract ICE created when the single desk ended.

Rather than setting the delivery point in Lethbridge, near Alberta’s feedlots, ICE put them in Saskatchewan.

The problem with a Saskatchewan delivery point, says Benham is “it doesn’t give you a realistic price discovery mechanism because of freight back-offs and the way freight works in Western Canada.”

Part of the challenge in creating a futures contract is drawing a broad audience, Vannan says. Narrow contracts don’t help with price discovery because there’s not enough competition between traders, he explains. “It’s like going to an auction and only having two people show up.”

And Vannan says the Lethbridge pricing point is only important in Western Canada. Consolidation in the grain industry has cut the number of commercials, which were important middlemen, Vannan says. Feedlot numbers have also dropped drastically in the last 13 years, and barley acres are about half of what they were.

“If it’s going to work, Canadian barley has to represent a global price,” says Vannan. “But it doesn’t in the same way that canola does, unfor38 country-guide.ca

tunately, because there are lower-cost suppliers of barley in the world right now.”

Blue says others have tried to create a feed barley cash trading market. Producers would sign on to a cash contract that allowed them to deliver barley at a later date, he explains.

“Those have struggled also, and I’m not exactly sure why,” says Blue. He would like to see either a way to physically deliver against the barley contracts or have it cash settled against a cash index.

For his part, Benham thinks the cattle industry needs to secure a reliable feed source or Alberta could end up exporting feeder cattle instead of finishing them. Possible solutions include developing higher-yielding barley varieties to boost acreage, sourcing other feedstuffs, using proprietary software from AgValue Group, or using marketing products that would allow feeders to source cash barley.

But Benham thinks the feeder industry may develop a different feed barley exchange to provide price discovery. Because futures are derived from functioning cash markets, Benham thinks this is a viable option.

“If you chose to make a market somewhere else, there’d be nothing to prevent you from doing that,” says Benham.

The future of futures ICE’s wheat and barley contracts aren’t functioning right now, but Vannan seems cautiously optimistic about the future.

“But it’s still early days yet. It’s been two crops — two crops that have come into the marketplace under considerably different conditions,” says Vannan.

Western Canadian farmers are quick to adopt crops that provide the highest returns, says Vannan.

Canola is a prime example, where the futures market supported growth in canola production. The industry’s investment in canola technology and farmers’ quick adaptation to the crop also helped the futures market function better, he adds.

“So those things go hand in hand. There’s lots of synergies that come out of that,” says Vannan.

And with recent change in the international wheat markets comes opportunity, Vannan says.

He cites the Euronext wheat contract, traded in Paris, as an example. For several years, that contract didn’t gain volume. But the Black Sea gained prominence as a global grain supplier, making the European contract a better hedge than North American contracts, Vannan says.

“Now it’s probably the fastest growing and one of the most important wheat contracts there is,” says Vannan.

The open wheat market could spell good news for Canadian wheat contracts, he says. North American wheat acres are being pushed farther north and west by corn and soybeans, he adds. Canadian contracts representing Canadian production will be the natural benefactors in time, Vannan says.

“That timing might not be right now. But I’ve got a feeling that it might not be that far away.” CG J u ly 2 0 1 4

CHRISTIAN FARMERS FEDERATION OF ONTARIO 7660 Mill Rd. RR4, Guelph ON N1H 6J1 Voice: (519) 837-1620 Fax: (519) 824-1835 Email: cffomail@christianfarmers.org Web site: www.christianfarmers.org

CFFO Seeks Stronger Water Stewardship

O

ntario has an abundance of fresh water; nowhere else in the world is there a greater fresh water resource than here in the Great Lakes Basin.

Thoughtful water stewardship may very well be the critical elements for enhancing the productivity of agriculture. The CFFO believes that water is the next big policy concern for agriculture in Ontario.

From the perspective of the CFFO, three game-changers exist that are driving the need for a renewed focus on water policy.

First, high land values are making productivity improvements a cost-effective option for farmers. Second, managing both productivity and water quality in

an increasingly erratic climate requires a better set of tools than we are using now. Third, the CFFO believes that government is more interested than ever in supporting farm innovation and self-reliance.

The CFFO sees three key policy focal points that require differing degrees of support programming: irrigation, drainage and storage.

Ontario farmers can win economically by using proactive

A general farm organization that is rooted in faith and guided by values

irrigation, drainage and retention systems to improve yields. This three-pronged approach can provide better stewardship of nutrient release into the great lakes. And finally, ponds can provide habitat for wetland species. The CFFO believes that improvements in agriculturerelated water policy can lead to greater water stewardship and productivity for the entire agriculture sector.

• 22 District Associations Across Ontario • Supporting our members since 1954 • A Professional Organization of Entrepreneurial Farming Families

www.christianfarmers.org

A professional organization of entrepreneurial farming families

business

The goal is

gouda

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business

Adam and Hannie van Bergeijk got their topquality Gouda cheese into Sobeys, but only by overcoming a series of roadblocks

Photography: David Charlesworth

By Helen Lammers-Helps wo years after he began making cheese commercially on his New Hamburg, Ont. dairy farm, Adam van Bergeijk admits he is pleased with their progress. “We’re close to our targets,” he says.

But van Bergeijk also admits it’s been a long haul to get to this point.

About 25 per cent of the milk from their 180-cow Holstein dairy operation is used to make Gouda-style cheese. The cheese is sold through a distributor to 250 stores including Sobeys, Loblaws, Zehrs, Foodland, Farm Boy and Metro, as well as several specialty shops.

The van Bergeijks also operate a store at the farm which is open Fridays and Saturdays.

Making cheese isn’t new for Adam and his wife, Hannie. They have a long history of making award-winning Gouda cheese on their farm in the Netherlands. Both had trained at the Gouda Cheese Making School in the city of Gouda in 1981.

When they immigrated to Canada in 1996 with their three teenaged children, van Bergeijk continued making cheese, but only for their own personal consumption. Although in the Netherlands it was common to sell farmstead cheese, the rules here made that difficult.

That changed, however, when the Dairy Farmers of Ontario introduced its Artisan Dairy Program to encourage small-scale makers of traditional dairy products, and van Bergeijk saw his opportunity.

The hardest part was getting the Continued on page 42 J u ly 2 0 1 4

After surviving red tape, cost overruns and delays, the van Bergeijks say success in value adding hinges on your skills — and your resilience country-guide.ca 41

business Continued from page 41 cheese plant built, says van Bergeijk. It took four years, with the red tape proving a big stumbling block. The Ontario Ag Ministry approved the plan for the stateof-the-art cheese plant but van Bergeijk was not able to obtain a federal licence.

“The Canadian Food Inspection Agency (CFIA) wasn’t interested in working with us,” he says. As a result, he is not permitted to sell his cheese to other provinces. “The rules are difficult to explain to the public,” says van Bergeijk, who also had to satisfy DFO regulations, although by the end of the project, he was impressed with the support he got both from DFO and from Dairy Farmers of Canada.

Getting the building permit approved at the township level was also a long and involved process, adds van Bergeijk.

As well, there were unforeseen construction costs that made the project go over budget, and a big learning curve for the contractors who weren’t familiar with the equipment which had been purchased from the Netherlands.

“It’s all sorted out now,” says van Bergeijk who is happily making cheese three times a week, about 400 kg at a time.

Fresh milk from the barn goes directly by pipeline to a 4,000-litre tank in the cheese plant in a separate building where it is sampled for quality standards.

“We are the only ones in the province who use milk directly to make cheese,” says van Bergeijk. Using warm milk, he says, keeps more of the flavours.

The van Bergeijks focus on making a

natural cheese from unpasteurized milk with no additives.

Cheese-making is a combination of art and science, and for those interested in the cheese-making process, there is a detailed slide show on MountainOak’s website at www.mountainoakcheese.ca.

Since the cheese is made from unpasteurized milk, it must be aged for a minimum of 60 days, and each cheese is given a unique number so it can be traced — there are now more than 3,000 cheese wheels in storage which must be turned daily.

So far the family makes 14 different types of Gouda-style cheese, all sold under the MountainOak name. There are four plain cheeses: mild, medium, aged (aged nine months) and Gold (aged 15 months). There are also several flavoured cheeses including wild nettle, chili pepper, black pepper, cumin, Friesian (cumin and cloves), mustard, fennugreek, pumpkin seed and black truffle.

“It is very important to get the right balance of spices,” says van Bergeijk.

“Too much and it will overpower the taste of the cheese.” He makes small batches of new flavours which he tries out on friends and family. He also monitors how well the different cheeses are selling.

Already the quality of MountainOak cheese has been recognized with two awards. The aged Gouda won first place at the British Empire Cheese Show in Belleville and the Gold cheese won second place at the Canadian Cheese Awards.

While getting the cheese plant up and running was the biggest hurdle, marketing has also been a bigger job than

Marketing will take more time, skill and commitment than you’ll probably estimate up front, say Hannie and Adam.

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expected. It takes a sustained effort to create awareness of their cheeses and to have people remember them, explains Hannie. So far this year they have done more than 40 demonstrations in grocery stores and at food events. They have a team of eight people trained in proper food-handling procedures to do cheese demonstrations. To help them manage the onerous job of marketing, van Bergeijk hired a marketing manager who works almost full time organizing demonstrations and shipments.

The milk used for cheese making must first be sold to the milk board.

Then the van Bergeijks buy it back from the board at a 10 cent per litre premium.

(Van Bergeijk says he hopes to negotiate a better price in the future.)

Van Bergeijk is also concerned about the impact of the CETA European trade deal which will allow more subsidized European cheese into Canada. While he says he can compete on quality, he cannot compete on price with subsidized European cheese.

To that end they are trying to encourage consumers (including other farmers) to support local farmers. “This is a Dutch-style cheese made from Canadian milk,” he says.

Van Bergeijk figures if we can make it here, why should we import it? The cheese plant creates jobs and contributes to the local economy.

In a typical week, Adam spends about 75 per cent of his time working in the cheese side of the operation and about 25 per cent still helping out with the farm which is managed by his youngest son, Arjo and his wife, Baukje. They also have three full-time staff, besides Adam, working in the cheese plant, as well as two part-time staff who work in the store along with Baukje and Hannie.

Another son, John, and his wife, Angela, have a dairy farm just a few kilometres down the road. A daughter, Liesbeth, has a dairy farm with her husband, Peter de Boer, near Tillsonburg.

In total, Adam and Hannie have nine grandchildren.

Developing a value-added business isn’t for everyone, says Adam. It takes someone with an adventurous spirit, says Hannie. And, adds Arjo, “someone who doesn’t give up.”

Van Bergeijk agrees. “When there is a roadblock you have to think, how am I going to manage it so I can get to my goal?” CG J u ly 2 0 1 4

BUSINESS

The right tool at the right time German implement manufacturer Lemken bases its Canadian growth strategy on providing equipment tailored to local needs

By Scott Garvey, CG Machinery Editor his time the conversation was the opposite of what I’m used to. In the last few years it’s become common enough to hear North American machinery executives talk about how they’re going to get their share of the huge new markets in the emerging economies. But in May, I was at implement manufacturer Lemken’s factory in Alpen, Germany, and the growth market on the table there was Canada.

In just nine years, our country has grown to become Lemken’s fourth-largest export market.

Short-term thinking goes against the grain at this family-owned firm that has existed since 1780. Just as John Deere started out building plows in his own Midwest blacksmith shop, Wilhelmus Lemken did exactly the same thing on the other side of the Atlantic. Both men founded brands that now have longterm, global strategies. Both brands also see superior overall value as their core advantage, and both are

strongly associated with a trademark colour in their home countries, green for Deere, blue for Lemken.

The comparison is actually kind of striking. “I’m focused on growth, but only on profitable growth,” says Anthony van der Ley, Lemken’s CEO. “(Some companies) are more focused on absolute growth, but not on the margin. We can get any order if we drop the price. If I’m interested in the short term, I can double the sales in three years. But don’t ask me if the company is going to exist in 10 years.”

Despite being unwilling to sacrifice profits for rapid growth, van der Ley says Lemken has actually achieved such growth in Canada. In 2013 the company’s sales hit 15.4 million euros (about C$22.9 million), up from nine million in early 2012. And he is bullish about 2014.

Implement manufacturer Lemken used a 500-year-old farmyard in central Germany as the venue for its International Press Day in May. PHOTOS: SCOTT GARVEY

Continued on page 44

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country-guide.ca 43

business Continued from page 43

Christian Jungmann, export sales manager (l) and Laurent Letzter, Canadian sales manager.

“In Canada this year we are aiming at 18 million euros, which I think is too low,” van der Ley says. “I would like to see 25, but we have to be realistic. If you add our U.S. volume to that, this year would be 28 million (in North America). There is a huge market, huge potential.”

For Christian Jungmann, Lemken’s export sales manager, the key to the Canadian market has been to provide “the right (tillage) tool at the right time.”

Lemken’s bread-and-butter products are cutting-edge tillage implements.

ple locations across the region. “The good news was there was no need for us to visit dealers,” Jungmann says. “The dealers came to us.”

Building on the method it used to get those first five Prairie sales, Lemken management believes that once farmers see what blue machines can do, they’ll be hooked. So demonstrations — even impromptu ones — have been a large part of the brand’s marketing efforts.

“To promote the products, we have a lot of demonstration tours going on in the different provinces,” says Laurent Letzter, Canadian sales manager. “We rented a tractor in Ontario. For a couple of days I

“Ten or 15 years ago when someone here in Germany talked about Canada, everyone was just thinking about big fields, big structures, big distances, this kind of thing,” Jungmann says. “No one was aware the eastern part was completely different.”

After setting up a Canadian subsidiary in Quebec, where many farms have a lot in common with those in Europe, an unexpected thing happened. A former company employee who emigrated to Manitoba called Jungmann suggesting there was a potential market for the brand’s tillage tools on the Prairies. After setting up a field demonstration there and immediately getting five firm orders for implements, executives found themselves looking for their first Prairie dealer.

“That was a step we had not planned in the beginning, to be honest,” says Jungmann. “We thought we’ll go into the East. Then I thought we’ll go over to B.C. At that stage, 2005, 2006, I had not thought about the Prairies, because it was known for no till. So everyone told me no tillage tools can be sold there. There’s no business. You can stay at home. Everyone believed that.”

Sales across the Prairies continue to exceed expectations, and now Lemken has 17 dealers with multi-

was driving (between scheduled demos) and we’d see some dust in the field, see a farmer working. We’d stop and ask if they’d like us to help them do some work. They can stay in their cab and see our demonstration guy doing a couple of passes. We’d leave them a brochure and they keep on working.

“One dealer in Alberta hired four demonstration people. He said 80 per cent of the demos he’d done turned into sales,” Letzter says.

The company also emphasizes followup support and service in its Canadian operation, just as it does at home in Germany.

“If you do something, you have to deliver the best service,” explains van der Ley. “Price is important, but it’s not the most important thing. If we had to sell on (purchase) price we would lose.”

“Product development is very important to Lemken, because we always try to innovate,” adds Letzter. “The foundation of the company is to bring new innovation to market, not just to increase turnover. There are over 100 engineers working here (in Alpen) to develop new products. When you count 1,000 employees that’s 10 per cent who are working on creating new innovation.”

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business But that innovation is only valuable if it meets farmers’ needs. What works well in Germany or France isn’t necessarily useful in Alberta or Ontario.

“The farming systems in North America are different,” acknowledges van der Ley. “First we want to make sure we understand the market and get feedback.”

Because of Lemken’s relatively flat management structure, Letzter can channel Canadian farmer feedback (much of it gleaned from those field demonstrations)

“If you look at the global implement market, last year, in 2013, it was a 96 billion (euros) market worldwide. In the next 10 years it will nearly double. Why? Because in the developing world, farmers are purchasing tillage equipment. That is a fantastic opportunity for Lemken. The market in China will triple. India will double.”

“We think the biggest growth potential is in Asia,” van der Ley goes on.

“But on the other hand, if you look to absolute sales volumes, because bigger

machines have a higher sales value, then there is tremendous potential in North America. In China and India there is big potential, but machines are very small, so you have to sell a lot of machines for a decent value.”

So van der Ley believes Lemken will need to stay flexible to cash in on those opportunities.

“You cannot grow only by increasing your sales,” van der Ley says. “You have to adapt your organization.” CG

AUGUST 26 | 27 | 28 | 2014

50 hectares of opportunities

The brand’s name displayed at the entrance to its Alpen, Germany factory. directly to engineers at the Alpen factory, which has resulted in several design changes on units bound for Canada.

“Most units in Europe have threepoint hitches, but in the West that wasn’t even an option,” Letzter notes. “We had to do a full line of drawbar units. And now that we have it, we see opportunity in other markets.”

Shortly before taking the stage to give his official address to farm journalists at Lemken’s International Press Day event in Kassel, Germany (also in May), van der Ley talked about the growth he expects in North America. And the numbers he throws out are ambitious. He backs them up by estimating future global farm income. Like every equipment company executive, he knows that farm income is the real driver behind machinery sales.

“In the next 10 years, we feel the world will have a tremendous agricultural commodity scarcity,” van der Ley says.

That translates into strong farm incomes.

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J u ly 2 0 1 4

Information : 450 771-1226 www.expo-champs.com country-guide.ca 45

0618 Country Guide Can (Anglais).indd 1

14-06-17 1:09 PM

Production Although opinions vary on the ‘how’ and ‘what’ of boosting wheat yields, the expert consensus is that most growers have large gains waiting to be made.

The path to bigger wheat yields Partly it’s genetics. Partly it’s agronomics too.

But mainly it’s management

By Ralph Pearce, CG Production Editor oo often, talk about wheat yields in Eastern Canada turns to what’s happening in places like Kansas, the United Kingdom or northern Europe, as if our best hope to increase our productivity here is to use the ideas they’re developing there.

Increasingly, however, the smart money is on taking a harder look at our own fields for the answers to our yield limitations.

There’s no doubt, after all, that wheat seems stuck in third place among our major crops. In corn, many growers in Canada have eclipsed 200 bu./ac.

“ If you have the genetic yield potential, and you do the right agronomic things to protect and achieve that yield potential, then you can make real headway.”

— Peter Johnson 46 country-guide.ca

and are now aiming at 300. Soybean yields have been climbing well into the upper 40s, and into the 50s in some fields. During the 2012 drought year, parts of fields ran into the 70s, with one grower in Chatham-Kent touching the century mark, even though it was only for about 100 feet.

But wheat? With yields averaging 85 to 90 bushels per acre (although a few growers consider anything less than 100 to be a poor crop), wheat just hasn’t been a crop to get excited about.

Some of the explanation for that is steeped in history, and some of it is related to genetics. But much of it is based on agronomics and management.

From a historical perspective, Peter Johnson believes it goes back to the days of single-desk marketing. From roughly 1980 to 2000, wheat acres in the province were in the 500,000- to 600,000-acre range. By 2000, the Ontario Wheat Producers’ Marketing Board had begun its march to off-board marketing. That did a lot to change the default mindset that the board’s marketing process created.

“The challenge was, I plant my wheat in September-October, apply my fertilizer in April, harvest it in July and I get my initial payment in August or September,” says Johnson, cereal specialist with Ontario’s Ministry of Agriculture and Food (OMAF).

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production “Then the final payment some years didn’t show up for 18 months.”

But that changed dramatically with the switch from single-desk marketing.

Since then wheat acres have jumped to the 800,000-acre mark, with intentions every fall to go to a million acres, weather permitting, mostly because there’s more control over marketing and cash flow for the grower.

Genetics and management Genetics is another issue that has held the crop back, especially in Eastern Canada. Corn and soybeans have benefited from considerable investment in plant breeding and transgenic trait development, but wheat has been sidetracked by federal and provincial funding cuts, not to mention the use of bin-run seed. That latter issue has played an unfortunate role in slowing research into improved varieties.

Fall weed management is another issue. According to Johnson, only five per cent of acres in Ontario have a fall weed management program, with “timing” the main factor (with soybean harvest, planting winter wheat, corn harvest plus fall tillage and any fertilizer applications — who has time for fall weed management?).

Then in spring, there’s the rush to get the first nitrogen application on wheat, plus any early herbicides, all without complicating corn planting.

Still, Johnson is optimistic about progress in seed genetics in wheat.

There’s still some wheat breeding being done at the federal level, and there are signs that private-sector investment is ramping up. Hyland Seeds has declared it will focus on wheat (unlike oats or barley), Syngenta has been investing more, and so have Pioneer and Monsanto.

“At the end of the day, we need more genetic progress, and we need more agronomic progress,” says Johnson. “I’ve learned that the two have to go hand in hand. If you don’t have the genetic yield potential, you can manage it to the nth degree, but you just don’t go anywhere. If you have the genetic yield potential and you do the right agronomic things to protect and achieve the yield potential, then you can make real headway.”

Most scientific studies have found that yield gain in most crops is 50 per cent genetic and 50 per cent agronomic.

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genetics or the agronomics don’t work, yet without the agronomics, the genetics won’t respond. It’s similar to testing higher nitrogen rates with fungicide applications, which have also boosted yield.

Also worth remembering is that fungicides can provide an extra eight to 10 per cent yield, but not because of disease protection from something such as fusarium head blight.

“In fact, it’s very rare to see significant yield gains to fusarium,” says Johnson.

“We did last year (2013) because we had a fusarium outbreak, but 19 years out of 20, I get that yield gain because I’ve kept the leaf tissue and the stem greener, longer, and I combined that crop three days later because it was too tough when the unsprayed crop was ready. All I did was lengthen grain-fill by keeping the crop greener so it matured, rather than die due to the disease.”

Managing the zones Determining the “what” and “why” is also important to Phil Needham, who has devoted much of the past 25 years to helping growers in North America grow better wheat using what can be considered European methods.

Needham operates Needham Ag Technologies from his base in Calhoun, Kentucky, and is a native of Lincolnshire, England. He focuses on a common-sense approach built around strong agronomics.

Among the parameters that Needham relies on are better seed, proper seeding depth, phosphorus in the row at planting, soil testing, even emergence and uniform stands, uniform and timely nitrogen applications and weed, disease and insect monitoring.

There may be little that’s revolutionary here, yet Needham suggests that too many growers treat their wheat as though all of these things occur evenly across an entire field, which is not the case.

“If you have a farmer who’s making 90-bushel wheat or 100-bushel wheat, just as an example, if he has a calibrated yield monitor, I’m going to guess that his yields probably go from 50 as the low to 150 as a high,” says Needham. “Using that starting point, I don’t think there are many growers out there managing things as well as they could.”

In the field of wheat genetics, Needham’s perspective mirrors Johnson’s.

“Corn and soybean genetics have run forward at a pretty rapid pace compared to wheat genetics, which barely advanced in the past 10 to 15 years,” says Need-

Managing for higher yields • Better seed • Planting/seeding, including phosphorus in furrow • Residue management • Establishing smaller management zones in a field • Uniform stands • Higher N rates • Timely N applications • Split versus single spring N applications • Mineralization • Organic matter • Monitor/scout for weeds, insects and diseases • Soil and tissue sampling • Row widths (under investigation in Eastern Canada)

ham. “A big part is that a lot of producers have been saving their wheat seed, and therefore a lot of the royalties haven’t been high enough to get a lot of interest from plant breeders on spending a lot of time on wheat genetics.”

In spite of that shortfall, Needham sticks to an approach that values how you use what you have instead of lamenting over what you don’t. Technology is important but having an unmanned aerial vehicle or a precision planter doesn’t automatically make you a better farmer.

Needham believes in sticking to the fundamentals. He cites one farmer using a GreenSeeker sensor and applying liquid nitrogen on his wheat at rates of seven to 24 gallons per acre across the field.

“You need to figure out which zones are high yielding, which zones are low yielding,” says Needham. “Concentrate on where those zones are and try to figure out what you need to do to improve the performance of the lower-yielding zones or improve yields from the highyielding zones.”

Timing is another important commodity in boosting wheat yields, whether it’s timing on planting, weed control or the use of a fungicide. Needham’s grandfather often told him that the difference between a good farmer and a bad farmer is a week.

Still, without adhering to the fundamentals, timing can be almost irrelevant.

Says Needham: “Starting with good Continued on page 48 country-guide.ca 47

Great yields start with great scouting, says grower Ken Hoeper.

By early April, he’s walking his crop once a week. “Then we begin to increase that frequency as the crop begins to head out.”

Continued from page 47 seed, good genetics for your region, a good fertility plan, good seeding depth, good residue distribution, all of the fertility practices — half of the yield potential is gathered or lost by emergence.”

Making it work Ken Hoeper is a follower of many of Needham’s management practices. In 1985, Hoeper and his family came to Ontario’s Huron County from northern Germany, and for the most part, he’s been growing wheat the same way since he arrived.

Farming at Amberley, south of Kincardine, Hoeper has 1,200 acres, which he splits into two rotations: winter wheatwinter barley-white (navy) beans on half, and winter wheat-corn-soybeans on the other half.

Hoeper also agrees with Needham’s assessment that wheat doesn’t have the same level of importance as corn and soybeans, but he maintains growers need to shift their practices in order to boost yield.

48 country-guide.ca

One thing Hoeper does differently is to scout his wheat early, as in the first week of April — once a week.

“Then we begin to increase that frequency as the crop begins to head out,” says Hoeper, always on the lookout for fusarium head blight.

Hoeper has also used growth regulators — he used Cycocel when it was the only one on the market — and he splits his N applications using two per year, although sometimes he’ll apply about 20 lbs. of 28 per cent roughly two weeks after the first application of N, but again that depends on the growing season.

“The main reason for that is to not apply too much all at once,” says Hoeper, adding that coming out of dormancy, wheat can’t take a sudden shot with amounts like 100 lbs. of N. “The last application is done with urea or ammonium nitrate, with a three-point hitch spreader at Zadoks 37, and usually we apply 40 to 60 lbs.”

Hoeper also agrees with Needham and Johnson that conditions in Europe are considerably different from those here

in North America. The biggest factor he sees is the day length, which is longer in northern Germany and the U.K., and that, says Hoeper, is likely not appreciated as much as it should be.

“They have more daylight hours, especially at grain-fill,” Hoeper says.

“And they don’t have much of a winter.

They would start putting on their nitrogen at the end of January or the beginning of February.”

That spread in nitrogen applications compared to harvesting in Europe — usually at the end of August — is uncommonly long, and creates a distinct advantage for yield. Growers in the U.K. and northern Europe have a grain-fill period of roughly 60 days, longer than anywhere in North America.

Temperatures are also cooler in northern Europe and day length is yet another factor: farther north, a crop may lose some of the grain-fill period, but it gains substantially in day length. Even a 45-day grain-fill period benefits from more hours of sunlight, which mean more photosynthate to boost yield. CG J u ly 2 0 1 4

Photography: Holly Dalton

Production

Spotlight on Crop AdvAnCeS

Crop Advances is an annual report that summarizes applied research projects involving the OMAFRA Field Crop team, in partnership with commodity groups, industry and the OSCIA. www.ontariosoilcrop.org/en/resources/cropadvances.htm

SuLphur AppLicAtionS – What are the options for increasing alfalfa and canola yields?

By Lilian Schaer

In Ontario, the amount of sulphur landing on the soil from the atmosphere has decreased by over 50 per cent since 1990. Alfalfa and canola are two crops with high sulphur needs if they are to produce good yields.

A project led by the Ontario Ministry of Agriculture and Food and Ministry of Rural Affairs (OMAF/MRA) is underway to develop recommendations for the source, rate and timing of sulphur application.

Project leads Dr. Bonnie Ball, Soil Fertility Specialist, and Canola Specialist Brian Hall are also working to refine tissue and soil testing tools to help identify sites that are responsive to sulphur application.

How was the research conducted?

Alfalfa: Five alfalfa sites were established in fall 2012 at Mitchell, Hesson, Wallenstein, Thunder Bay, and Winchester. The following treatments were used: no nutrients, muriate of potash and sulphate of potash both applied in early spring, and fall-applied elemental sulphur at both 50 and 100 pounds per acre. Plant tissue was collected for sulphur testing before the first and second cuts and soil was sampled in both 2012 and 2013 for extractable sulphur.

Canola: Five on-farm sites in southern Ontario and one site at the Thunder Bay research station were established with ammonium sulphate applied at zero, 10, 20 and 40 pounds per acre. Soil samples were taken several times and in southern Ontario, plant tissue was collected from the zero and 20 pound per acre sites at the rosette stage for testing.

What has the project found?

Alfalfa response to S fertilizer application was profitable on some sites with fall-applied elemental sulphur providing a similar yield increase to sulphate of potash applied in the early spring. The mild winter and wet spring in 2012-

2013 may have improved the sulphur availability from elemental sulphur; the trials will be repeated in 2014-2015.

are being repeated in 2014-15 to measure residual material response, and some new sites are being added.

“The elemental sulphur was better than expected as far as availability,” says Ball. “If growers take a tissue test from alfalfa of the top six inches of the plant at the late bud to early bloom state and sulphur concentration is less than 0.25 per cent, it is a good likelihood that they would get a profitable response to sulphur application.”

In canola, different sulphur application rates are being tested this year in an attempt to fine-tune recommendations. Tissue sampling will also continue to try to establish a suitable test for canola to help growers determine whether top up sulphur application might be needed as the crop is growing.

In 2013, there was little response to sulphur in canola yields, which can be attributed to generally lower yields in that crop. Over the previous three years of sulphur trials, however, the average yield increase was 9.7 per cent (210 pounds per acre) and 80 per cent of sites showed a positive yield increase to sulphur application.

“One of the things we’re still being challenged with in canola is predicting sites where we would see a response to sulphur, as we don’t have an accurate soil or tissue sample test right now,” says Hall, adding that a tissue test at the rosette stage was completed and although it shows promise, there is a lot of unpredictability in the crop’s response to sulphur. “Sulphur exists in organic matter and spring weather plays a big role in how quickly it is released to the crop.”

Overall, though, says Hall, there are increasing instances of consistent response to sulphur although the jury is still out on what rate will yield the best results.

“Even though we have a difficult time predicting, what growers are currently doing in terms of applying sulphur on canola as insurance is a wise decision,” he says. “I’m comfortable with a range of 20 pounds per acre and would be reluctant to go lower than that. We did have higher rates but didn’t see a response that was better economically than what you were getting at 20.”

Both Ball and Hall agree that more research is needed to identify critical values and sampling protocols for soil sulphur testing. Two alfalfa plots

ontArio SoiL AnD crop iMproVEMEnt ASSociAtion

Where can I get more information?

More information on this project is in the Crop Advances section of the OSCIA website at http://bit.ly/1k4WafL. How was the research funded?

Investment in this project was provided by Agriculture and Agri-Food Canada through the Canadian Agricultural Adaptation Program. In Ontario, CAAP is delivered by the Agricultural Adaptation Council. Additional support was provided by Heartland Soil and Crop Improvement Association, Ontario Forage Council and Ontario Canola Growers Association.

OSCIA assisted with communication of research results.

Key project highlights • Alfalfa: Use a tissue test to determine whether to apply sulphur. If you take the top six inches of the plant at the late bud to early bloom state and sulphur concentration is less than 0.25 per cent, you should benefit from sulphur application.

• Canola: There is enough sulphur deficiency that you should be using some sulphur with canola prior to planting as an insurance factor to make sure you’re not shortchanging the crop.

Mission: Facilitate responsible economic management of soil, water, air and crops through development and communication of innovative farming practices

www.ontariosoilcrop.org/default.htm

Production

Another story on Canada fleabane?

Yes, because the message isn’t getting through, and the situation is getting serious

By Ralph Pearce, CG Production Editor t may seem repetitive, but that’s because the message isn’t changing. Canada fleabane keeps becoming a bigger problem with each passing year. The weed has been the topic of presentations at the Southwest Agricultural Conference dating back to 2012, as well as at FarmSmart Conferences and in a steady stream of weed and herbicide bulletins.

Country Guide has been a part of that information stream, with three consecutive Pest Patrol columns this past winter with advice on how to deal with herbicide-resistant Canada fleabane. There’s also been an increasing sense of urgency expressed

by Mike Cowbrough, OMAFRA weed specialist as well as by Dr. François Tardif of the University of Guelph, and Dr. Peter Sikkema from University of Guelph’s Ridgetown Campus.

Researchers shake their heads; 60 per cent of glyphoste-tolerant soys still get glyphosate alone Now, their sense of urgency is beginning to turn to frustration, and this year, that frustration began to bubble over right from early spring. For instance, at their first joint meeting this year, certified crop advisers (CCAs) and OMAFRA staff specialists renewed their focus on how to deal with Canada fleabane, with much head-scratching among dealers and company reps about why the message isn’t getting through.

One adviser spoke of a wheat field in Elgin County with Canada fleabane plants that had survived harsh winter conditions. Another dealer said a grower he knows has found the weed on his farm, but didn’t believe them to be resistant to glyphosate. Provincial wheat specialist Peter Johnson added that two of the five fields he’d vis50 country-guide.ca

ited before April 15 had fleabane with three-inch rosettes, so it’s little wonder that weed experts are perplexed.

But the reason for their concern goes even deeper.

Extension staff, dealers and retailers had believed they were doing a good job dealing with Canada fleabane in soybeans, and that it was in wheat where fleabane would be getting out of hand.

Yet according to OMAFRA sources, as much as 60 per cent of the glyphosate-tolerant soybean (Roundup Ready) acres planted in Ontario are still sprayed with glyphosate alone. That means increased selection pressure for resistance.

This is surprising given Sikkema’s revelation in May 2013 that Canada fleabane had been confirmed in Huron County, and that there are now biotypes that are resistant to glyphosate with FirstRate (cloransulam-methyl), meaning they’re resistant to two modes of action. In spite of recommendations then that farmers treat all Canada fleabane as though they’re resistant, that message still hasn’t been picked up.

Also adding to the sense of urgency for 2014 was the delayed onset of spring, a point that’s been long forgotten in the warmth of midsummer.

But the April 15 meeting was highlighted by a late taste of winter with three to four inches of snow across most of southern Ontario, further delaying normal operations. The weekend previous to the meeting, many wheat growers in the region had been spreading clover in their crops, putting in time before corn planting. And that impatience was actually adding to the difficulty of dealing with Canada fleabane.

Growers were trying to squeeze more activity into a narrowing window, especially in a shortened spring. They were trying to get nitrogen on winter wheat, prepping corn ground with a fertilizer application, followed by discing or cultivating. Where could they find time and opportunity to deal with glyphosate-resistant Canada fleabane, or fleabane that’s resistant to glyphosate plus FirstRate?

June 2014

PRODUCTION

What’s left to say?

Regardless of time constraints, the implications are obvious and in many fields, they’re getting worse. For Mike Cowbrough, the situation is beyond frustrating because he knows the implications, and he’s given the presentations, he’s attended the company meetings, he’s posted bulletins, and yet the message only seems to be getting through some of the time.

“What are we going to say at this point?” asks Cowbrough.

“It’s an important weed to control and I’ll grant that, but there are plenty of options, and you’re not going to use glyphosate in wheat, so growers are either going to spray wheat or they’re not.”

That’s another issue for farmers — the lack of fall weed management practices that are commonly used. OMAFRA figures indicate roughly 50 per cent of wheat acres receive some form of herbicide treatment, yet only about five per cent of acres receive a fall weed treatment as part of a conventional fall routine. Growers can cite having to squeeze in the harvest of soybeans, planting winter wheat, then harvesting corn, plow-down and where possible, some type of fall fertility program as the priorities in a six- to eight-week fall season. But the stakes for control of Canada fleabane are getting higher.

“It’s a big issue, and I understand that,” says Cowbrough, citing the three-part series he wrote for COUNTRY GUIDE, followed by this article that will reach farm mailboxes with 2014’s crops. “If this article works as a summary-primer for the season, that’s fine. I just don’t know how to sell this any different.” CG

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Incredible numbers Whether it’s in soybeans or wheat, the message with Canada fleabane is simple: control it early… or else.

With the weed’s ability to produce 58 million seeds per acre, not to mention a seed that parachutes itself into the wind, it’s easy to understand how Canada fleabane has spread north and east in the past year. Prior to 2013, the weed had been confined primarily to counties along the north shore of Lake Erie — from Windsor to Niagara.

The northward migration is an indication that growers are slow to react to the onset of glyphosate resistance in Canada fleabane, and it seems many are treating fleabane with the same kind of denial as soybean cyst nematode.

According to research done in Illinois, fall weed control is essential for wheat, yet it’s almost as important to keep fields clean following harvest. Failure to do either means growers will not stay ahead of Canada fleabane, even under the most brutal winter weather conditions.

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country-guide.ca 51

Production

Cr op pr otection

In search of a good label On virtually every pesticide container, it’s written in big, bold letters, “Read the label and booklet before using.” My guess is almost no one complies, and with good reason

By Warren Libby, Savvy Farmer t can be a ridiculous request. Labels have become virtual novels. The label for the most widely used pesticide in Canada, glyphosate, can be over 100 pages long. If you tank mix glyphosate with another herbicide such as Pardner, add another 59 pages to your bedtime reading.

Has anyone ever taken the time to read 160 pages of label text before applying their pest control treatment to a single field?

To compound the issue, labels are technical in nature, written in hard metric, and there is no standard format for how the information is presented.

Growers understandably turn to other sources for information about their pest control products.

For some, that information may come from their dealer, for others from an agronomist, and for still others it may come from a neighbour. But do even these folks have time to read through hundreds of labels and stay completely abreast of the new information?

We know that the label contains vital information about rates, timing, pre-harvest intervals, crop rotation, and restrictions. Get any one of these parameters wrong and you risk poor control, crop damage or residues. You may even put your own safety at risk. Yet between the government’s need to protect us from all risks, and the manufacturer’s need to ensure we use their products correctly, labels have evolved into something that does neither, since they just don’t get read.

Labels have always been a pet peeve of mine.

In addition to their sheer length and difficult language, there are a couple issues that really stand out as impediments to the proper application of pesticides. The first is the following statement found on the vast majority of products: “Refer to the tank-mix partner label for use directions, restrictions and precautions.”

In modern weed control we rarely use one pesticide, but rather tank mix two or more products.

Unfortunately many manufacturers make tank mixing a daunting task by failing to provide full instructions on their labels. Instead, they take the approach of demanding farmers find and read the tank-mix partner label themselves.

52 country-guide.ca

I do not want to pick on a single product, since this is a very common practice in the industry, but Evito fungicide serves as a good example. Suppose you have powdery mildew in your durum wheat and choose Evito to take care of it. The Evito label states it cannot be used alone but must be tank mixed with another fungicide, such as Folicur.

Yet the Evito label includes no instructions for using Folicur except “Refer to the tank-mix partner label for use directions, restrictions and precautions. When EVITO 480 SC Fungicide is used in combination with other fungicides, always follow the most restrictive label restrictions and precautions.” This means growers must find a label for Folicur and read through that 17-page Folicur document in order to know how to apply Evito to their wheat crop. Again, I did not want to focus on Evito, a very effective fungicide, but it is a good example of what can be found on literally hundreds of labels.

In defence of pesticide manufacturers, it’s easy to understand why they are unwilling to include complete tank-mix partner instructions on their labels. Pesticide labels are already massive and the inclusion of full details on each tank-mix partner would bloat these out of control. Manufacturers also worry that there could be changes on the label of the tank-mix partner product, which would demand that they reflect those changes on their own product labels. When you have over 40 tankmix partner products listed on your label, as is the case with a product such as Horizon, a manufacturer could be in a position where it needs to rewrite its label every few months.

To avoid this responsibility, they simply demand that we read the label for the tank-mix partner, effectively shifting the burden onto the farmer.

The second major issue with modern pesticide labels is that information is not organized in a standardized industry format but is often scattered throughout the label, requiring us to read the entire label if we want to be certain we have all the necessary information.

Labels have evolved over time as more crops, tank mixes, and application methods are added.

While manufacturers have done a commendable j u ly 2 0 1 4

production

job of adding new uses to labels, less thought has been given to how information is organized, making them a Mensa-like exercise to actually figure out precisely how to apply the product. Again, not to pick on a single pesticide, I will use the example of the very popular product Roundup WeatherMAX here. Let’s say you want to use WeatherMAX to control certain weeds in your soybeans.

You would need to wade through that lengthy label and pull information from the following sections.

Page 14 — Mixing instructions Page 18 — Buffer zones Page 19 — Weeds controlled Page 31 — Surfactant information Page 37 — Application rates and notes Page 41 — Tank mixes for soybeans Page 58 — Aerial application instructions Page 70 — Broadcast and spot treatment instructions Page 71 — Application details and PHI for tank mixes Page 77 — Spot treatments in soybeans Page 80 — Pre-harvest treatments

While Monsanto does a better job than most at providing information about tank-mix partners, it still does not provide enough, and demands that users “Consult the XXX Herbicide label for tank mixing instructions and use precautions including instructions on replanting to other crops.” So as noted above, in addition to reading that 101 page glyphosate label, you should also be reading the label for the tank-mix partner.

Manufacturers will continue to add more crops, pests, and instructions to labels, as they should. Health Canada will continue to demand more information be included to protect human health and the environment, as it should. Both are doing their jobs, yet that results in labels getting longer, more challenging to read, and more difficult to follow.

It’s time for the pest control industry, led by the industry association CropLife Canada, to show some leadership on this issue. If the industry is genuinely interested in the proper and safe use of pest control products, it needs to make it easier for farmers to follow the rules. CG

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country-guide.ca 53

PRODUCTION

#PestPatrol

with Mike Cowbrough, OMAFRA Have a question you want answered?

Hashtag #PestPatrol on twitter.com to @cowbrough or email Mike at mike.cowbrough@ontario.ca.

Options for tufted vetch Can I do anything to get rid of vetch before seeding soybeans? ufted vetch (Viccia cracca) is a weedy perennial legume that is difficult to manage in cropping systems that use reduced tillage and particularly when annual legume crops like soybeans are grown.

Tufted vetch also exhibits high tolerance to many herbicides, most notably glyphosate. A rate response study was conducted by the University of Guelph over a decade ago and it took three times the normal rate of glyphosate to provide over 80 per cent visual control.

Observations made by growers and agronomists are consistent with the public research. Glyphosate applied at rates typically used for pre-plant burn-down applications in soybean do not control tufted vetch.

If tufted vetch is not adequately controlled before

planting, there aren’t any effective herbicides at managing it once the soybeans have been planted. A summary of the most effective herbicide programs used in nonGMO soybeans over three years is shown in Table 2.

Cause for optimism in 2014 research trials?

This spring, I was able to evaluate a number of pre-plant burn-down treatments that targeted some perennial weeds, including tufted vetch. There were a couple of very impressive treatments, specifically when either flumioxazin (found in Valtera, Step-Up, Fierce and Guardian Plus) or saflufenacil (found in Eragon, Integrity and Optill) were mixed with glyphosate and the adjuvant Merge. I will provide an update in the next issue of Pest Patrol to see if this level of control continues, but for the purposes of providing a quick and clean seedbed for soybean emergence, these treatments have been impressive. CG

TABLE 1. Visual control of tufted vetch when treated with different rates of glyphosate Herbicide and Rate

Impressive foliar burn of tufted vetch with glyphosate + Step-Up + Merge.

Glyphosate (540 g/l) at 0.67 l/ac.

57

Glyphosate (540 g/l) at 1.34 l/ac.

72

Glyphosate (540 g/l) at 2 l/ac.

85

Glyphosate (540 g/l) at 2.68 l/ac.

98

TABLE 2. Visual control of tufted vetch after applications of herbicide programs used in non-GMO soybeans Treatment (application timing)

Equally impressive foliar burn of tufted vetch with glyphosate + Optill + Merge.

A flowering tufted vetch plant found in the untreated control area.

Visual Control (%)

Visual Control (%)

Boundary (PRE) followed by Reflex + Pinnacle + Non-Ionic Surfactant (POST)

74

Broadstrike RC + Boundary (PRE)

67

Dual II Magnum + Sencor + Lorox (PRE)

62

Pursuit + Valtera (PRE)

59

Conquest + Valtera (PRE)

52

An important point: I’m choosing to show you the results of one trial with optimistic results so far. I’m doing so because this is a species that more growers struggle with and there aren’t currently many options. It is important to keep in mind that for a weed to be listed as controlled on a herbicide label, a minimum of 10 replicated trials conducted over two growing seasons must be provided. This provides a level of assurance that the herbicide will perform on the labelled species. One trial may be a fluke; we won’t know until this is replicated several times. Therefore expectations for control of tufted vetch with these treatments at this point should be low.

54 country-guide.ca

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WATER MANAGEMENT

The Key to Sustainable Agriculture As organized agriculture evolved during the past 7,000 years, societies have repeatedly fallen as their food production systems failed. Throughout much of history it was possible for populations to re-establish themselves on new and fertile land at other locations. That option no longer exists.

The agricultural frontiers of today lie in the intensification of production on our best land through the use of new science and technologies. These provide us with an immense capacity to produce food in the short term. The real issue is how do we produce food sustainably?

The development of new varieties and hybrids, more efficient fertilizer use and effective pest management are important, however, the single mostimportant contributor to sustained intensive production is water. Crop production systems and soil management practices must be designed and applied to accommodate efficient water use.

This involves the combined efforts of

engineers, agronomists and smart farmers as water management infrastructure and practices are conceived, designed, installed and used.

In some geo-climatic situations, lack of precipitation limits crop production.

Irrigation can solve this problem but history has shown that water sources are o­en fickle and finite, so efficient use is critical. Any existing soil moisture must be conserved through well-planned agronomy measures.

In situations where there is seasonally excess soil moisture the gravitational water that crops cannot use must be removed from the crop root zone.

However, only enough water should be removed to create an air-moisture environment that favours growth of large, healthy crop roots that can efficiently retrieve nutrients and the hydroscopic water that plants can use. This same environment is most favourable to soil biota that contribute to the soil’s capacity to produce, regenerate and be physically

No-till crop production conserves hydroscopic moisture and allows high populations of soil biota that contribute to soil health. PHOTO COURTESY OF OMAFRA

The removal of gravitational water is a necessary step in creating a favourable air-moisture balance in the soil.

stable. Practices that maintain or increase organic matter levels also support soil biota populations and add to soil waterholding capacity.

Active soil biota, good organic matter levels and large root systems indicate healthy soil. Healthy soil is essential for water-use efficiency, high yield and sustainable crop production.

Today, our Land Improvement Contractors – with the benefit of rapidly evolving technology – are already engaged in installing soil moisture management systems. This is generally referred to as sub-surface drainage, although the terminology misrepresents the objective of the practice. As soil moisture demands become more critical, its management will become more precise and more sophisticated.

The science around soil moisture management is complex. However it is use of this science in combination with use of the science around the biological component of soil that sets us apart from the historical experience. More than anything else, careful and precise water use will contribute to sustainable agriculture.

The Land Improvement Contractors of Ontario (LICO) is an association of professional drainage contractors and suppliers of drainage pipe and equipment. The focus of their business is soil moisture management to enhance crop production in Ontario.

LAND IMPROVEMENT CONTRACTORS OF ONTARIO

Schmidt’s Farm Drainage

LICO CONTRACTORS

1990 Ltd. Harriston

Specializing in Farm Drainage, Backhoeing & Excavating. GPS includes: mapping, grade control & surveying GPS Grade Control Tel: 519-338-3484 Cell: 519-323-6335

CENTRAL Region

GPS Design and Mapping Quality Farm Drainage Systems

MARQUARDT

FARM DRAINAGE LTD. (Established 1968)

LISTOWEL Matt 519-291-0767 1-800-565-6478

43 years of experience in providing professionally designed drainage systems.

CHECK WITH US FOR YOUR

FARM DRAINAGE NEEDS

We provide you with the best of: Drainage knowledge & expertise Free estimate based on our expertise  Competitive pricing  Personal service  Detailed field surveys  Professionally designed drainage systems and installations  GPS mapping and guidance  Excavator and backhoe work  

Call us Toll Free:

1-888-534-0393 STEVE CRONSBERRY (Owner)

Office: (519) 343-3233 Home: (519) 338-2373

LICO CONTRACTORS EASTERN AND NORTHERN Region

• Plastic installations • A GPS equipped • Family operated for contractor 35 years • Open trench & plow • Excavating & Bulldozing installations • Custom trenching & backhoe service

GREG WALKER

705-340-5500 Lin Scott Drainage Ltd.

On top of what’s gone below since 1981.

• Provincially licensed tile drainage contractor • Provincially certified erosion control contractor • Tile drainage • Erosion control, grass waterways

• Land clearing, fence bottom removal • Excavating, bulldozing • Open ditches, ponds and lagoons • All laser-equipped • Plastic tile and culvert sales

7226 Blindline Rd. R#4 Elmira ON N3B 2Z3 Ph: (519) 669-2256 or Res (519) 669-4253

LAND IMPROVEMENT CONTRACTOR

TILE DRAINAGE & EARTH MOVING SPECIALISTS We do more than just tile drainage!

P.O. Box 297 Alexandria, ON K0C 1A0

613-525-1940

Email: linscottdrainage@bell.net

M. Downey Excavating Ltd.

• Full Laser and GPS Machine Control • Tile drainage – Farm and Municipal • GPS Drawings for Drainage Systems • Land Clearing • Building Site Preparation • Road Building • Manure Storage Pits

P.O. Box 215, Pakenham, On K0A 2X0

Tile Drainage Contractor • GPS RTK Topomapping Backhoe, Bulldozer, Excavator Rentals Steel Culverts in Stock • Plastic Tile Licenced in Ontario & Quebec

Mervyn Downey 613-624-5346 C: 613-720-2143

Stephen Downey 613-624-5030 C: 613-314-3819

• Plastic Tile and Culvert Sales • Excavating, bulldozing, fine grading • Fence Bottom Removal • Erosion Control • Water Mains and Irrigation • Shoreline Protection • Tile Bed Systems – All Sizes

We tackle any equipment related project

613-623-8802 | Arnprior, Ontario pneillwms@gozoom.ca

Phone: (613) 388-2345 Fax: (613) 388-1092 Mobile: (613) 561-5006 Email: herman@richmondditching.on.ca www.richmondditching.on.ca

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Glenn Hayter 519-808-6115

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DRAINAGE PROFESSIONALS SINCE 1967

GPS Control & Mapping – Septic Installations Complete Drainage Service Glen & Dennis Kuepfer (519) 595-4545 R.R. 1, Newton, Ontario N0K 1R0

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A&E Farm Drainage Inc.

2184 Line 45, Gads Hill

Glen Allan, Ontario

519-656-2618 • 1-866-494-2618 or

82562 Allboro Line, Blyth

519-895-6367 • 1-866-671-5950

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FARM DRAINAGE LTD.

Thorndale, Ontario N0M 2P0

(519) 461-1422

KEITH FREY

Phone: 519-698-9933 Cell: 519-575-6211 Email: aefarm@sgci.com

kmmccut@gmail.com

Quality design & Construction of Agricultural Drainage Systems

Manufacturer of Quality Profile Polyethylene Pipe Locations in: Thorndale, ON Winchester, ON & Carman, MB

1-800-265-7098

www.idealpipe.ca sales@idealpipe.ca

LAND IMPROVEMENT CONTRACTORS OF ONTARIO

DRAINAGE SINCE 1949

w e at h e r NEAR NORMAL

O

WARMER THAN NORMAL AVERAGE RAINFALL

cc a ra sio in na

rm Wa ry D ls l spe

MILDER THAN NORMAL

C Froool sty

l

Ch Sh ang ow ea er ble y

COOLER THAN NORMAL

NEAR-NORMAL TEMPERATURES AND RAINFALL

Cool Wet spells

Variable Showery

August 10 to September 13, 2014

ONTARIO

Aug. 10-16: Mostly sunny with seasonal temperatures on most days but a couple of humid days set off showers and heavy thunderstorms. Cooler, showery northwest.

Aug. 17-23: Two or three unsettled days bring some rain and thunderstorms, otherwise mainly sunny skies dominate with comfortable temperatures in the 20s.

Aug. 24-30: Expect cooler nights but highs often climb into the 20s. Sunshine on many days with scattered showers and a few thunderstorms in a few localities.

Aug. 31-Sept. 6: Sunny with seasonal temperatures but look for passing showers or thundershowers, risk heavy in places.

Cooler nights send some lows to near zero in northern areas.

Sept. 7-13: Variable temperatures and brisk winds this week. Frost poses a threat to central and northern areas. Sunny aside from scattered rain activity on two or three days.

QUEBEC Aug. 10-16: Variable weather as sunny, warm days exchange with some shower or thundershower activity. On more humid days expect heavier scattered thunderstorms.

Aug. 17-23: Highs peak in the comfortable 20s on most days under sunny skies.

However, on two or three days look for showers or thunderstorms, some possibly heavy.

Aug. 24-30: Seasonal to warm but with a few cooler nights. Brisk winds at times.

60 country-guide.ca

Sunshine alternates with some rain or showers. Isolated thunderstorms at a few locations.

Aug. 31-Sept. 6: Mainly sunny with seasonal to warm temperatures but with cooler nights. Some lows dip to near zero in central and northern regions. Scattered showers on two or three days.

Sept. 7-13: Frost threatens southern regions on one or two nights but is more extensive in central and northern areas.

Fair overall apart from some rain activity on a couple of occasions.

ATLANTIC PROVINCES Aug. 10-16: Expect variable weather as sunny, pleasant days and warm temperatures interchange with a few showery, foggy days. Scattered thunderstorms in western areas.

Aug. 17-23: Sunshine prevails on several days this week but disturbances bring some rain and gusty winds to a few eastern regions. Seasonal to warm. Scattered thunderstorms west.

Aug. 24-30: Mostly sunny with pleasant temperatures but with a few cooler nights.

Rain on a couple of occasions with blustery winds. Heavy rain threatens eastern regions.

Aug. 31-Sept. 6: Cooler nights with some lows near zero north. Sunny skies and comfortable temperatures dominate but with some rain and gusty winds on a couple days.

Sept. 7-13: Look for a few unsettled changeable days as disturbances race by.

Overall, sunny, warm days alternate with blustery, wet days. Chance heavy rain in places.

August 10 to September 13, 2014 NATIONAL HIGHLIGHTS Summer is expected to linger in British Columbia well into September as warm and relatively dry conditions envelop the West.

In contrast, cooler-than-usual weather is anticipated in central portions of the country stretching from southeast Saskatchewan to the southern half of Manitoba and much of northwest Ontario. The cool temperatures are likely to be accompanied by occasional wet spells resulting in above-normal rainfall. Across the rest of Canada warm, dry days are expected to be offset by cooler, wet outbreaks. As a result, temperatures and rainfall amounts should average out close to normal over much of the Prairies as well as most of Ontario, Quebec and Atlantic Canada. Typical of our climate in Canada, frost will make its first appearance in September in many parts of the country. An emerging El Ni単o is not likely to bring any significant changes to our weather pattern before this fall or early winter.

Prepared by meteorologist Larry Romaniuk of Weatherite Services. Forecasts should be 80 per cent accurate for your area; expect variations by a day or two due to changeable speed of weather systems.

J u ly 2 0 1 4

CONGRATULATIONS!

Colleen Crunican Denfield, Ontario

Mario Roy St-Jules-de-Beauce, QuĂŠbec

Donald Bertagnolli Rocky Mountain House, Alberta

Danean Edgar Wolseley, Saskatchewan

The next generation of Canadian agricultural leaders is growing, and CABEF is proud to support them. Congratulations to these six exceptional students who have won $2,500 CABEF scholarships. Based on their applications, the future of the agriculture industry is in great hands.

Michelle Ross Grenfell, Saskatchewan

Stephanie Dousselaere Cartwright, Manitoba

Six more $2,500 scholarships will be awarded to grade 12 students in April 2015.

Apply at cabef.org @CABEFoundation

CABEF is a registered charity (#828593731RR0001).

For more information on all registered charities in Canada under the Income Tax Act, please visit: Canada Revenue Agency www.cra-arc.gc.ca/charities.

life

Set them up for success So your son or daughter wants to take over the farm. How can you help them succeed?

By Helen Lammers-Helps

With more than half of Canada’s farmers over the age of 55, it’s estimated that $50 billion worth of farmland will change hands in the next 10 to 15 years.

What will it take for the next generation to be successful? How important is education? What skills will be essential? How can young people best prepare themselves for this new role?

We asked five experts from Canada and the U.S. to weigh in with their thoughts on these critical questions.

Education There was a time when practical skills and hard work were enough to be a successful farmer.

With increasing farm size and complexity, those days are gone.

“There are successful business owners with very little education, and I believe that is still possible, but the law of averages says there are very few really exceptional people out there,” explains Richard Cressman, a farm business management coach in New Hamburg, Ont. Gordon Colledge, a farm adviser in Lethbridge, Alta., agrees. While some children return to the farm with excellent practical skills such as welding or operating equipment, Colledge says that this isn’t enough. It’s essential that the successor also understand the business side of the farm, including relationship management, resolving conflict with siblings and in-laws, and being an all-around effective communicator, says Colledge.

“And he or she also needs to have a good grasp of the farm’s finances,” Colledge says. “If they wait until they meet with the accountant after the annual statement it may be too late.”

In a perfect world, Cressman favours a degree or diploma in business with a minor in communications as the ideal academic preparation for farm62 country-guide.ca

ing. With more people involved in the farm, being a good communicator is more important than ever, he explains.

“The successful family figures out how to build communication into the management structure,” Cressman says.

Dr. David Kohl, a professor at Virginia Tech University, agrees that communication skills have become increasingly important for farm owners.

Farmers need to be able to work with staff and family internally, but also externally with bankers, regulators, consumers and others.

One of the values of education is learning to be a good student, says Colledge. Farmers will need to be lifelong learners so they can keep up to date on the fast-paced changes coming to agriculture. They need to be taking advantage of courses and conferences, he says.

Reg Shandro agrees. A mediator in Red Deer, Alta., Shandro says other professionals are expected to participate in a minimum of 30 or 40 hours of professional development every year to stay current. Why not farmers? he asks.

By attending conferences, young farmers can also develop a network of like-minded peers who can act as a resource and sounding board, adds John Anderson, a farm adviser with Collins Barrow WCM LLP in Kingston, Ont. J u ly 2 0 1 4

life Experience All of the advisers we consulted agree that in an ideal world, the successor should work away from the farm for three to five years. While many parents are eager to have the kids show commitment by working on the home farm, the long-term benefits from the experience and maturity gained while working away from home are substantial. Certainly they outweigh the short-term labour benefits of having an extra pair of young hands working at home.

A Cornell University study showed succession was twice as likely to be successful, and profits were three to five times higher, when the successor worked away from the farm, says Kohl. “They need to learn to take orders from someone else,” he explains. “And parents will have more respect for them.”

Cressman agrees. “They need that time away in order for Mom and Dad to stop seeing their son or daughter as their little girl or boy.”

That time away gives the successor time to mature and to know if they really want to farm, adds Shandro. And they can make their mistakes using someone else’s money, he adds.

If the son or daughter says they want to farm but there is some doubt, rather than spending money expanding the operation to accommodate the child, have them work on another farm to see how they like it, suggests Shandro. “They can pick up skills and be mentored… the door is open for them to come back in five years.”

Some parents worry that if the child works elsewhere they won’t come back. Kohl’s response is to tell parents to concentrate on building up a really attractive business so the child wants to come back.

Passion A passion for farming goes a long way toward making a successful farm manager. It will motivate the younger generation to develop the necessary skills and fill in any knowledge gaps.

Taking over out of a sense of obligation doesn’t bode well for success. “If the kid only wants to farm out of a sense of guilt, it may be better to sell to someone else with a new vision,” argues Colledge.

The successor should be coming back to the farm with an offensive rather than defensive mindset, says Shandro. “If they are retreating to the farm for the lifestyle and because it’s a place of comfort, that’s not good.” He prefers to see people coming back to the farm because they are excited about the opportunities to grow the business.

Managing risk Parents are wise to have an honest discussion with their offspring to determine their motivation for taking over the farm. Sometimes the child wants to work on the farm but is not interested in a management position, says Kohl. A neutral third party can help identify these situations.

One of the difficulties with the succession process is that when a son or daughter enters the business there is no job application process and no evaluation. “Just because someone has the same last name or DNA doesn’t mean they will be a good manager,” explains Anderson.

Both the successor and the parents should have job descriptions and performance reviews, adds Kohl.

Parents often have difficulty evaluating the suitability of their progeny for taking over the farm. He finds they are often biased, either positively or negatively.

The founder’s ego can also get in the way, says Shandro. They may overestimate their own abilities at that age, or the criteria they consider to be important may be outdated. The founder may even feel threatened by the successor.

A trusted third-party adviser such as a banker or accountant may be able to make a more objective evaluation. They can also help resolve differences when the parents aren’t in agreement, says Kohl.

J u ly 2 0 1 4

One of the most important steps in a succession plan is to assess the skills needed, identify any skills gaps and make an action plan for filling those gaps, says Anderson.

One area where kids are often lacking is their understanding of the farm finances. Parents tend to look after the farm finances and as a result the younger generation does not learn what they need to know, explains Anderson. This is one area where the parents may need to mentor the successor.

If the younger generation doesn’t have the necessary skills, you can hire these. Anderson gives the following example. There was a farmer who was ill with a terminal condition. While his son had been working in the farm business and was a good reliable worker, the father did not feel he had the necessary management skills or aptitude to run the farm business. The solution was to hire a farm manager to help the son with the decision-making on the farm.

When grooming the next generation, parents would be wise to avoid spoiling them. There are too many kids who were given new pickup trucks at 16, laments Shandro. “It’s very difficult to turn this around,” he says.

Farm succession is tricky business. It’s a very different world from when most parents began farming and there are no cookie-cutter templates. Being well prepared and maintaining open lines of communication will take some of the risk out of the process. CG country-guide.ca 63

h e a lt h

A short history of blood thinners

By Marie Berry

f you or anyone you know takes warfarin, you may feel that you are being treated like a rat, but not so! Warfarin reduces blood clotting and it also prevents thromboembolism or blood clots. As well, it reduces the risk for conditions such as strokes caused by atrial fibrillation.

It does the same, but is lethal, for pests including rats and mice.

Ideally you want your blood to flow through your circulatory system. When a blood clot forms, it may “plug” the vessel, resulting in thrombosis, for example deep vein thrombosis or DVT. These clots can occur after joint replacement surgery, if you are bedridden and immobile, or even after a long airplane flight. If the blood clot dislodges from its originating location, it can travel through the circulation “plugging” other vessels in the lungs, heart or brain.

This is known as an embolism and may cause emergencies such as heart attacks or strokes.

Blood clotting involves a series of reactions within your body, and much like a domino effect, one reaction or step causes another. Heparin and warfarin were until recently the two most commonly used anticoagulants. Both interrupt steps in the coagulation process, much like removing a domino in the cascade of steps that leads to a clot.

Heparin is available only as an injectable drug and has a short duration of action. It is ideal for hospital use where its dose can be monitored and dose changes can be made quickly. Warfarin, available as oral tablets, is longer acting, and thus it is suitable for your use at home.

Monitoring is essential with both heparin and warfarin because you don’t want your blood either too thin or with too much of a tendency to clot.

With warfarin, regular blood tests are needed and your dose is adjusted depending on the international normalizing ratio or INR result.

Too much of an anticoagulant can cause bruising and bleeding, and the antidote, vitamin K, may be needed. Warfarin is associated with a long list of potential drug and food interactions, and its effect can be impacted by drugs that can cause bleeding on their own, for example the non-steroidal anti-inflam-

matory pain relievers, as well as by other medications that interfere with warfarin’s metabolism in the liver and foods that have a high vitamin K content.

If you take warfarin, be really aware of what other drugs and foods you can and cannot take.

To prevent clotting after joint replacement, heparin used to be used for several days to weeks after surgery until you were mobile enough so that the risk for clotting had decreased. Heparin required several injections each day, and this led to researchers developing low molecular weight heparin formulations such as enoxaparin and dalteparin. Although these still need to be injected, they only need one injection each day. For the 60,000 Canadians having joint replacement surgery each year, the once daily injection has certainly made recovery easier.

Atrial fibrillation is a heartbeat irregularity that reduces the ability of the heart to pump efficiently.

This in turn allows “pooling” of blood and leads to an increased risk of clot formation. This type of arrhythmia is more common than you might think, affecting over 350,000 Canadians, including eight per cent of people over 80 years of age.

Symptoms can be mild, for example palpitations, fainting or chest pain, and they may be attributed to other causes. Increased age, diabetes, high blood pressure, other heart diseases, and even increased alcohol consumption are risk factors. Along with drugs to modify the heartbeat, warfarin is given to prevent clots and stroke. Lifelong treatment is needed along with lifelong blood tests to ensure the warfarin dose is correct.

Recently new blood thinners have been developed that, once the correct dose has been determined, do not need ongoing blood tests, for example rivaroxaban, dabigatran and apixaban. Taken orally, these drugs are effective and convenient, especially for conditions such as atrial fibrillation, but you still need to watch for bruising. And, even as you are reading this, researchers are looking for more effective and safer anticoagulants!

Marie Berry is a lawyer/pharmacist interested in health and education.

You probably take water for granted, but as the most common component of your body, you shouldn’t.

Water or H2O is essential for life, but you may not get enough, and of course with the wide variety of types of water you may be wondering if there is one that is the most suited to overall health. Next issue, we’ll take a look at what science has learned.

64 country-guide.ca

J u ly 2 0 1 4

NOW AVAILABLE The meeting is longer and more tedious than usual. A protracted debate about signing officers is followed by a lengthy discussion about the summer meeting. Will it be potluck or catered? Should we plan for indoors or outdoors? Do we want to play some games? A retired school teacher snorts, “And I drove fast to get here on time!”

The death of a longtime member is reported. A motion to donate $25 to his favourite museum creates more debate. Lloyd listens patiently to several speakers before expressing his frustration in vivid language. “The man was a member of this organization for many years. He was 103 when he died, but I am damn sure he would have been gone much earlier if he had attended meetings like this.”

I reflected on how conversation is frequently accentuated with mild profanities. Is there harm in adding the odd obscenity? Does cursing cause people to take us more seriously, or is the “reptilian” part of our brain acting up? Profanity can be more than words. We use expressions, gestures or other social behaviours to make our point. The rude, vulgar or obscene often captivates modern culture.

Swearing is an ancient practice. The Third Commandment, delivered to Moses 5,000 years ago, says, “Thou shalt not take the name of the Lord thy God in vain.” Cursing is more than including culturally or socially unacceptable words in daily conversation. God is often the object of bad language, an easy target to express dissatisfaction. Cursing crosses a line when used to demean another individual.

Corb Lund, an Alberta country music icon, sings about downto-the-bone emotions. A phrase in his song “Cows Around” caught my attention.

May you always have cows around What else you gonna spend that extra money on What else is gonna get you up hours before dawn What else is gonna keep you toiling on and on and on May you always have cows around C’mon you know that you got too much time on your hands Not merely enough complication in your plans You need to invite all the frustration that you can…

May you always have cows around What else can make the bishop swear like a sailor might?

I can think of more than a few things to make a bishop swear.

But does it do any good? My grandfather operated a ranch in central Alberta. When things did not go well, he would say, “It is enough to make a preacher swear.” Yes, I need to hear and respond to my own sermons.

Mark Zuehlke in his book Scoundrels, Dreamers and Second Sons tells the story of a man named Majoribanks who ranched in the interior of British Columbia. Majoribanks used strong language while loading cattle onto a train for shipping to market. “Majoribanks peppered his commands with a string of obscenities, all issued at a bellow that carried far on the early-morning air. The Presbyterian minister, a Mr. Langill, happened along, and, mortified by Majoribanks’ language, strode over to the big man.” “Really, Mr. Majoribanks,” he said, “don’t you think that a man in your position should be showing a better example to the men in your employment?”

“Hell, man!” exploded Majoribanks. “I’m not teaching a Sunday school. I’m loading cattle, and I’m giving the boys the best example I can. And I’ll bet that Noah swore when he was loading his animals into the ark.”

Suggested Scripture: Psalm 32, James 5:12 Rod Andrews is a retired Anglican bishop. He lives in Saskatoon.

J u ly 2 0 1 4

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©2013 Farm Business Communications

country-guide.ca 65

ACRES

By Leeann Minogue

Interpret this!

When the busload of Chinese farmers arrives on tour, they see more than any of the Hansons had planned ale’s shift running the swather was finally over. He’d never been so glad to see a truck pull into the field.

He was shirtless when he climbed down from the cab to switch off with his son Jeff. “I had to strip down to stand it in there,” Dale said, wiping sweat from his forehead with his T-shirt before he pulled it on. “If I was a dog, somebody would report this to the SPCA.” This was the second day the Hansons had been swathing canola with no air conditioning. This was also the second day the service manager at the dealership had said he could send someone out “tomorrow.” With only one swather and two sections of ripening canola, the Hansons couldn’t wait. Dale had been baking in the heat all morning.

Dale’s father Ed had claimed to be too busy to take a shift in the swather, but he did have time for an opinion. “I can’t believe all this complaining,” Ed said. “I remember when the neighbours thought we were crazy just to pay for a cab.”

“At least you got a breeze without a cab,” Jeff said.

“You could see that breeze, it was so full of dust,” Ed retorted.

“They make these cabs today so the windows don’t open. We can throw the door open, but we’re

66 country-guide.ca

basically sitting out in the sun in a glass box. We should rent out space to grow tomatoes in there.”

Ed looked disgusted. “Lazing around with your stereos and your drink holders. You kids have no idea.” Then he smelled Dale. “Ah geez. I don’t know if I even want you riding back to the yard in my truck. Hurry up and get in. We should take the combine out and see if that winter wheat is ready to go.”

Jeff carried his cooler up the steps to the cab and took one last breath of outside air. “Elaine tried to get me to bring out a roast in a Tupperware container,” he said. “She thought it might cook faster than in the Crock-Pot.” Jeff’s wife Elaine had taken her shift in the sauna of the swather the day before, while her mother-in-law watched the kids. Now, Elaine was waiting for her guests to arrive.

Over the past year, Elaine had been spending more and more time learning about farm policy. She’d joined a farm group’s working committee, made several trips to Saskatoon and Regina for meetings, and stayed up after the kids went to bed so she could read reports and sit in on conference calls. When one of the board members had phoned earlier in the week to ask a favour, Elaine agreed right away.

“A busload of Chinese farmers is stopping by on Tuesday afternoon,” she’d announced that

J U LY 2 0 1 4

acres

morning when most of the Hansons were out in the shop, looking over the combine. “They’re excited to see a Prairie harvest.” When another Saskatchewan farmer on the schedule had cancelled, the Hansons happened to be near the group’s route.

“A busload?” Ed said. “They’ve got so many people they’re shipping them over by the busload now?”

“They’re on a learning tour,” Elaine said, more patiently than might have been expected. “They’re stopping to see as many Prairie farms as they can.”

Elaine was proud to be included, pleased to have a chance to show off the Hanson farm and to be part of an international farm network.

“They’ll spread disease from coast to coast,” Ed said.

“I checked,” Elaine said. “They’re following protocol. They’ve even got those disposable plastic booties.”

“I don’t like it,” Ed said. “What if they learn something?”

“That’s why they’re coming,” Elaine said.

“Exactly. They’ll go home and grow more wheat. So they won’t have to buy ours.”

The rest of the Hansons weren’t sure exactly how to answer that. They knew Ed was being ridiculous, but it was hard to find a flaw in his logic.

“We’re pretty busy, Elaine,” her father-in-law said. “I’m not sure we have time to be tour guides.”

“They’re bringing their own guide,” Elaine said.

“And an interpreter.”

“Elaine and I talked about this, Dad,” Jeff said.

“We’ll shut down for 10 or 15 minutes so they can get a good look at the machinery, then we’ll get back to work. It won’t hurt us to take a break. I’m kind of looking forward to showing them how we do things.”

“I’ve heard the rumours in town about how much farmland is being sold to Chinese buyers,” Ed said. “If one of those guys puts his hand up, don’t nod. He might be placing a bid on this place.”

Nobody bothered to reply to this.

“The planners at the Chinese Embassy have been giving me a lot of information,” Elaine said. “These people are used to a lot of formal protocol. I told them we’d do the best we can, but they might have to take what they get, visiting a grain farm at harvest.”

“No kidding they’ll take what they get,” Ed said. “I’m not getting all dressed up for a busload of farmers.”

“You’ll be polite, Dad,” Dale said.

“Don’t worry,” Elaine said. “I’ll warn the interpreter not to translate everything she hears! Their driver said they’d be here between 2 and 2:30. I’ll

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make sure I’m in the yard to meet them, then I’ll phone you guys to let you know when we’re coming out to the field.

The bus pulled into the Hansons’ yard at exactly 2:15.

After she showed them the yard and the machinery in the sheds, Elaine got on the bus and guided the driver out to the south winter wheat field, where she was pleased to see the combine already stopped next to the grain truck. She wasn’t as pleased when she heard Ed and Dale cursing.

As Ed used his angriest language to explain how he’d plugged the feederhouse going through a green patch, Elaine watched the young interpreter turn every shade of red, from salmon pink all the way through to fire hydrant. Elaine hoped the woman didn’t understand all of the words he was using.

Ed claimed to be too busy to take a shift in the swather, but he did have time to offer an opinion Elaine was sure things would go better when they went to see Jeff on the swather. He’d phoned her earlier to tell her he’d prepared a talk. “I’ve been repeating it over and over to myself,” he said, “so I’ll get it right. I’ve been thinking so hard, I could barely pay attention to the field! Call me when you’re coming.”

Elaine was so flustered after dealing with Ed, she forgot to phone Jeff. Luckily, the swather was at the edge of the field when Jeff saw the bus, so he pulled over right away.

Once they were off the bus, Elaine faced the group and had the interpreter translate. “This is my husband,” she said proudly. “He’s a fourth-generation farmer, keeping up the family tradition.”

Elaine watched the delegates while the translator spoke, but they just stared, open mouthed. One man giggled. A woman pointed. Elaine turned to see Jeff walking toward them, smiling. He’d completely forgotten that while he was practising his speech in the sweltering cab, he’d stripped right down to his faded-green boxer shorts. CG Leeann Minogue is the editor of G rainews , a playwright and part of a family grain farm in southeastern Saskatchewan

country-guide.ca 67

WHERE FARMERS MEET

CORN SILAGE HARVESTING DEMOS

GROBER YOUNG ANIMAL DEVELOPMENT CENTRE

COVER CROP TILLAGE DEMOS

ALLTECH DECK

SILAGE BAGGING/BALING DEMOS

HORTICULTURE PAVILION

GENUITY® NEXT GENERATION OF SOYBEANS

CANADIAN ENERGY EXPO • Presented by Faromor Energy Solutions

SKID STEER RIDE’N’DRIVE

BIOMASS EQUIPMENT DEMOS

NEW FUELS / NEW TRUCKS EXPO

CORN STALK BALING DEMOS

BRITESPAN DAIRY INNOVATION CENTRE • Featuring Lely & DeLaval

www.OutdoorFarmShow.com

TM

info@outdoorfarmshow.com

TEMPO PLANTER DEMOS 1-800-563-5441

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Canada’s Outdoor Farm Show

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