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EASTERN EDITION

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September 2014 $3.50

STAN JEEVES

GO TO MARKET BUILDING A PLAN THAT WORKS PG. 24

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CONTENTS

SEPTEMBER 2014 BUSINESS

PG. 24 CHARTING A PROFIT More and more farmers like Saskatchewan’s Stan Jeeves (above) and Manitoba’s Dale Gryba are bypassing the textbooks to create their own marketing plans, with an emphasis on practicality and dependability.

EVERY ISSUE 6

MACHINERY GUIDE

Those tractors aren’t just bigger. They’re better too.

60 62

8

THE OTHER SIDE

10

THE OLD WORLD GOES NEW

14

WICKED PROBLEM

16

LOOKING FOR A SAFE BET

20

MAKE THE MOST FROM THE 2014 MARKET

28

WHEN GOOD DEEDS ARE GOOD BUSINESS

31

THE CONSUMER CONNECTION

34

GUIDE HR — MAKE A BETTER IMPRESSION

36

SUCCESSION SHOCK

39

GETTING THERE FROM HERE

42

IT’S ALL DIFFERENT NOW

44

SWEDE HAWK

46

GUIDE LEGAL — FIRING AN EMPLOYEE

58

GUIDE LIFE — TOO YOUNG, TOO OLD

In Germany, this man’s farm really is his (subsidized) castle.

There’s a reason farming’s problems are so hard to solve.

With grain markets down, where are the opportunities?

Our Errol Anderson tells us how to score on grain sales.

For farm groups, the hot new trend is giving to food charities.

Maybe the gap between consumers and farmers isn’t so big.

Use this science to make the people around you like you more.

So you think your neighbours have already signed their plan?

Succession is a journey, but don’t we still need a road map?

High land prices are driving innovation in land transfers.

Here’s why Väderstad builds corn planters in Saskatchewan.

Know the law before you tell that employee to take a hike.

Watch out! The generation gap is back with a vengeance.

PRODUCTION 48

LINKING UP

50

CHECK THESE OUT

56

PEST PATROL

GUIDE HEALTH

Nobody wants to talk about warts, but these cures work.

Uh, maybe you’re too competitive, says new biz book.

HANSON ACRES Who’s going to fill in for Grandpa Ed? Hey, I know…

Your best bet may be to invest in drone technology and satellite images too.

With Canada’s Outdoor Farm Show in Woodstock, our Ralph Pearce shares his tips on what to be sure you see.

In July, Mike Cowbrough thought he might have a new answer for vetch control in soybeans. He’s glad he took a second look.

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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4 country-guide.ca

SEPTEMBER 2014

desk EDITORIAL STAFF Editor: Tom Button 12827 Klondyke Line, Ridgetown, ON N0P 2C0 (519) 674-1449 Fax (519) 674-5229 Email: tom.button@fbcpublishing.com Associate Editors: Maggie Van Camp (905) 986-5342 Fax (905) 986-9991 Email: 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 (204) 944-5560 Cell (204) 290-5419 Email: dan.kuchma@fbcpublishing.com Head Office: 1666 Dublin Ave., Winnipeg, MB R3H 0H1 (204) 944-5765 Fax (204) 944-5562 Advertising Services Co-ordinator: Sharon Komoski (204) 944-5758 Fax (204) 944-5562 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. 10 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.

September 2014

Tom Button is editor of Country Guide magazine

There will be a winner If you take Canada’s inventory of farm machinery and multiply its working capacity times an average number of days for seeding, spraying or harvesting, how many acres will you top out at?

Can the average farm cover 20 per cent more acres than it is actually farming? Or 50 per cent?

Certainly it’s more than five years ago.

This isn’t to say that excess capacity is always bad. But even the machinery industry must agree that at some point, you cross the line into overspend.

Of course, as I have complained in past, our universities and our governments really aren’t much help. As a farmer, you can pretty easily leverage your checkoffs to breed higher-yielding or more diseaseresistant crop varieties, but you can’t get a publicly paid economist to work on issues that actually matter to commerical farms.

Anyway, given the scarcity of meaningful economic research in Canada, take a look at what you do know. Sit down for a half-hour, either with pen and paper or your notebook, and add up not only your own capacity, but also the capacity of the farms you know within, say, 15 or 20 miles of your home place.

Then compare that not only to the number of acres that are being farmed within that same radius, but also the amount of land that is coming up for sale, or that is available to new renters.

I keep coming back to the reporting that associate editor Maggie Van Camp

did just over a year ago into what happened to U.S. farmland prices the last time commodity prices went through such a steep dive as we’ve seen in 2014.

It was the 1980s, and of course, interest rates that were far higher than today.

Nevertheless, what Maggie found is that farmland prices didn’t collapse with the downturn in commodity prices.

In fact, U.S. researchers later documented a six-year lag between the drop in grain values and any significant response in land markets.

We’ll likely see the same in Canada this time around. Who would rush now to cut prices on large amounts of farmland? The number of sales may go down, but not the prices.

From the outside, you’d think it would create stagnation. But the U.S. evidence is that somehow the long-term trendlines continued for agriculture overall. America’s farm sector evolved. There were winners. There were losers. And farm size kept notching up.

The point is that there is a lot more evolution going on than we can actually see. Some farms are increasing their competitiveness. Others aren’t.

But the question I really don’t know the answer to is, are the winners going to be the farmers with equipment that will cover 150 per cent of their current holdings, or those with 110 per cent?

Let me know what you think. I’m at tom.button@fbcpublishing.com. country-guide.ca 5

Machinery

By Ralph Pearce, CG Production Editor

The high-powered parade in tractor technology continues. With each year, more manufacturers are rolling out more entries for this growing tractor segment. These machines are bigger and more powerful, and they are more capable than ever before.

They work larger tracts of land, haul heavier loads and deliver on a longer list of heavyweight tasks all around the farm. Below we showcase three of the latest series and models in the 325-horsepower and up category.

Whether you’re putting crop in the ground in the spring, or hauling it out of the field in the fall, the tendency on farms all across Canada is “Go Big — so you can Go Home!”

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September 2014

Challenger MT800E Series Track Tractors  Four models, four levels of engine horsepower and the company’s determination to provide unmatched power, performance and productivity are the source of Challenger’s new MT800E series track tractors. With models ranging from 450 to 590 engine horsepower, the MT800E series combines rugged performance with reliability. Challenger engineers custom designed these tractors for farm and field applications, including the AGCO Power 16.8-litre diesel engines, featuring a compact design with two-stage turbochargers. Avoid downshifting or pulling an implement out of the ground by generating more torque rise across a wider range of r.p.m.s. That means you can lug more through your fields and maximize productivity. The Mobil-trac system and the patented oscillating mid-wheel undercarriage design means there’s superior ground contact yet less compaction, plus a smoother ride and improved fuel efficiency. And when the workday becomes a “work-night,” the MT800E models provide 360-degree visibility, for clear sight lines and enhanced comfort.

www.challenger-ag.us

 Case IH Steiger 370 – 620 Tractors

Deutz-Fahr 1100 Series

There are a lot of words and terms to describe high horsepower and superior performance. For Case IH, the only word you need to know is Steiger. Awarded Machine of the Year, 2014 at Agrictechnica in Germany, the updated Steiger series provides efficient power, unmatched four-wheel-drive adaptability, and loads of heavy-duty capability. Together, they translate into increased productivity, so you get more done with less. For four-wheel power, choose from 370-, 420- and 470-horsepower models. For heavy-duty action, the Steiger 580 HD and 620 HD tractors provide that added power to the ground for those tough spots in the field, or when there’s a need for added speed on the road. There’s even the choice of what the company calls the industry’s largest available row-crop tires, or Case IH’s Quadtracstyle tracks, to spread the operating weight and reduce compaction.

The company also says it is the first to offer a suspended cab, stabilized from front to back and side to side, allowing you to work smarter and in comfort, no matter the conditions.

Deutz-Fahr is working hard to establish itself in this higher-powered tractor class. The 1100 series is the biggest and most powerful tractor Deutz-Fahr has ever built. There are three different models in this series, but only the 11440 TTV fits into this large-scale class, with maximum power of 300 to 408 hp. The 11440 comes with the TTV continuously variable transmission, which offers infinitely variable speed from zero to 60 km/h. When it comes to operator comfort, Deutz-Fahr provides the latest in ergonomics and easy operations.

There’s also a new console, new air conditioning system and a multifunctional MaxCom armrest, with an integrated infotainment system.

For improved traction in the field, the 11440 is also outfitted with a new tire combination, including 2.3 metre-diameter size for the tops in traction.

www.deutz-fahr.com/en-US/

www.caseih.com/en_us

September 2014

country-guide.ca 7

reviews

The other side Competition isn’t everything, argues an American author who is a ruthless competitor in the race to get attention

By Andrew Allentuck

A Bigger Prize: How We Can Do Better Than The Competition (Doubleday Canada, 2014, 391 pp.)

$32.95.

t’s the bedrock of economics, and it’s all about how you compete in markets to sell at the best price you can get, and to buy at the lowest price you can pay.

Two centuries ago, Adam Smith proved how this kind of self-interest creates advantages for entire economies.

It’s the subject of his The Wealth of Nations, and we’ve trusted and relied on Smith’s Invisible Hand ever since.

But, did Smith get it wrong?

That’s the breathtaking assertion of Margaret Heffernan’s A Bigger Prize: How We Can Do Better Than the Competition.

On the surface, Heffernan’s book is a collection of anti-capitalist slogans from the occupy movement.

At that level, Heffernan’s rant seems outlandish, but her book has a provocative foundation.

After all, robber baron capitalism is controlled or illegal, thank heavens.

Stealing from the poor to support the rich is out of fashion. It’s not allowed, save for unprosecuted misdeeds on Wall Street. The question is therefore — what lessons can we, and especially farmers, get from a book that takes a stand against the concept of competition?

Heffernan’s pitch is that we should co-operate instead.

If that sounds simplistic, maybe you should give her a chance to make her case.

Heffernan is a columnist for the Huffington Post and she is also a relentless self-promoter, but she musters evidence to support her plea for co-operation. It isn’t all that difficult, it turns out, to cite some stunning flops as examples of worst-case outcomes of competition.

For instance, a major global management consultancy advocated forcing employees already hired and working 8 country-guide.ca

By Margaret Heffernan

within companies to compete for their jobs once a year.

As a way of injecting competition into a company, it made perfect sense.

But of the companies that implemented the idea, one-third went up in smoke, 18 per cent turned in disappointing results, and 16 per cent underperformed by some measures.

So, is the idea then that you need competition between farms, but co-operation within the farm itself?

Maybe. But haven’t generations of farmers kindled a bit of competition between their children or between employees to see who will rise to the top?

Heffernan’s argument for trashing competition is too brief and broad, but her basic idea is that co-operation is not the only opposite of competition. So is non-competition.

Let’s see what Heffernan’s core idea of co-operation offers agriculture. She mentions the cranberry business in Maine and says that they are grown only in the U.S. In fact, Canada is the world’s second-largest producer of the bitter fruit. She likes the idea that the cranberry folks in Maine support common research and marketing. What does that imply for other business?

Charges of anti-competitive marketing practices are often levelled against Canada’s marketing boards. But are those boards also co-operative in the best meaning of that phrase?

Canadian cheese producers’ business, which is ringfenced by high tariffs against foreign cheese, would shrivel if they had to compete directly against the world’s big cheese makers. Now look at the opposite case. Canada has no tariffs against foreign grapefruit because we have no citrus industry. So an orange or a lemon in Toronto

often costs less than those in Cleveland.

The free market works in the lemon biz in Canada because government price controls are absent.

On the other hand, when players in an industry collaborate to jack up or to maintain prices, to limit who can sell their goods, who can work and to set retail prices, then entities like the U.S. Federal Trade Commission and Canada’s Competition Bureau go to work. Price fixing (called Resale Price Maintenance in Canada) and refusal to deal is illegal in almost every established market except those protected by marketing boards or for products sheltered by tariffs.

A Bigger Prize is valuable for provocation. It makes you think about what should be regulated, what not.

In the end, the co-operative model works for undifferentiated products like fruit, which indeed does have a lot of grower co-operatives, and fails for branded goods like cars and other manufactured or value-added products.

It comes down to differentiation. If a grower can produce premium sausages, they have a good chance of getting more than market price for their pork.

There are many attempts in agriculture to add value in specialty grains like spelts, heritage tomatoes and apples, and even milk-based products that are not directly board regulated.

And it’s true. When I shop, I want choice and difference. That takes competition. CG September 2014

Introducing AFS Connect.™ The only advanced farm management system that guards your data as closely as you. It’s simple. When you buy a combine, a tractor or a piece of land, it’s yours. So when you buy a farm management system that gives you one easy dashboard to track and manage every piece of equipment on your farm, the data should be yours — yours alone. See how AFS Connect gives you total control over your data at caseih.com/afsconnect.

BE READY.

©2014 CNH Industrial America LLC. All rights reserved. Case IH 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. www.caseih.com

business

new

any Canadian family farms proudly display a “century farm” plaque at their front gates, signifying at least 100 years of uninterrupted family ownership. But as impressive as that may be, 100 years hardly registers on the European scale. The Graf family of North Rhine-Westphalia, a province in northern Germany, can trace its ownership back to 1340.

Nor is that their biggest difference from just about any farm in Canada.

Behind the farm’s castle (yes, a real castle), a phalanx of 350-plus-year-old buildings encloses a square, paved courtyard. The buildings include the current manager’s residence, which once housed the many labourers required to keep a non-mechanized farm operating. “The buildings are from 1746,” says

Farm manager Maximilian von Laer (l) and assistant manager Björn Wiggen spend nearly as much time managing the farm’s heritage buildings as working on its crops.

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In Germany, this man’s farm really is his castle, bristling with electronics and shrouded in subsidies and regulations

By Scott Garvey, CG Machinery Editor

farm manager Maximilian von Laer through a translator, as he stands near his front door.

Taking care of those old buildings is a job in itself. “One-third of my time is spent on building management,” von Laer says.

On the outside, all the buildings retain much of their original appearance and look like they could be a movie set, if it wasn’t for the modern equipment parked in front of them. Most of the structures on the farm are designated historical buildings, with strict regulations in place governing their use.

That means changes can only be made to them with prior government approval. “You have to ask them and it takes a lot of time,” von Laer explains.

But time isn’t the only cost. While about five per cent of historical building maintenance expenses are paid by the German government, when you consider the property has 12.5 acres of roofs alone (some of them thatched), the overall costs are significant.

Working within a framework of strict regulations is nothing new for von Laer — or other farmers in Germany. Signing on to accept EU government agricultural subsidies means agreeing to comply with a long list of standards for such things as chemical and fuel storage, which are subject to periodic inspections.

The Graf farm is the largest operation in North Rhine-Westphalia, with about 3,700 acres of cropland under its control. (Of that, 95 per cent of it is directly owned.) The farm also manages about 8,600 acres of woodlot.

It takes some travelling to get to all that real estate.

Fields are spread out over what used to be five separate farms, four of which have been added to the Graf holdings during the last 20 years. The farthest is 54 kilometres away from the castle. In all, there are 130 individual fields with an average size of about 30 acres each.

September 2014

Photos: Scott Garvey

The old world goes

business

Buildings in the farm’s courtyard, date back to 1746 and are designated historical structures.

The family has also invested in a 4,900-acre farm in the former East Germany, which von Laer sees as almost an exact opposite to the one under his mangement and much more like a Canadian farm. “It has a small house, big machines and big fields,” he says with a smile. It has its own manager, too, and is run independently of the Westphalia operation.

To keep his farm running smoothly, von Laer has an assistant and three full-time tractor drivers on staff. In the summer, the farm also takes on seasonal workers. That has even included hiring groups of schoolkids on their summer breaks to hand pick the small, jagged stones that litter many of the farm’s fields and cause a lot of tire damage.

The woodlots keep the farm’s regular workers busy during the winter, where trees are selectively felled and sold for timber or provided to the Graf family’s small furniture-making business, which is located only a short walk from the farm’s gate in the surrounding village of Fürstenberg.

A few decades ago, that shop would have provided all the village’s furniture, von Laer explains, and a large percentage of the people living there would have earned their living chopping wood in the forest that runs to its edge.

The farm also operates a large-scale chicken

September 2014

operation that cycles through production of 160,000 birds every 44 days. All the manure they produce is fed into an on-farm biogas production system.

Methane fuel created from processing the manure and farm-produced wood chips is used in an electrical power generation system recently installed in one of the farmyard’s historical buildings.

The wood chips come from fields planted with fast-growing tree varieties, not the higher-quality hardwood timber in the woodlots. The recently installed biogas-powered generator produces 500 kilovolts of electricity, with any excess sold to the main power grid. “We want to be energy independent,” says von Laer.

A large furnace near the generator uses the same wood chips as its fuel source for heating the chicken barns and other farm buildings. The heat created by the generator engine is also recycled to supplement the main heating system.

In the field, the farm’s six MFWD tractors ranging from 200 to 380 horsepower and its two combines are used to produce and harvest mainly winter wheat, barley, sugar beets and winter rapeseed crops, all non-GMO of course. Six hundred acres of wheat are set aside for feed in the poultry operation.

Continued on page 12

country-guide.ca 11

business

The farm’s workshop (through the open entrance) in one of the historic buildings that looks like it was originally a stable.

Contractors work on installing ducting for a new centralized heating system located inside one of the heritage buildings. It uses wood chips harvested on farm as a fuel source.

Continued from page 11 To maintain its agricultural tax rate advantages, the operation does not do custom work, unlike many other large-scale European operations. It would pay a higher tax bill if the total off-farm income exceeded 50,000 euros (C$75,000). But it does co-operate with a group of other local sugar beet growers, using its equipment to harvest the group’s combined 1,500 acres of that crop each year.

Yields for dry grain corn in that region typically run about 10 tonnes per hectare, (160 bu./ac.), 55 tonnes for silage corn (22 tonnes/ac.), 4.2 tonnes for winter rapeseed (74 bu./ac.) and 10 tonnes for wheat (150 bu./ac.).

Most of the farm’s crops are contracted directly to domestic processors. While there are brokers who purchase grain and route some of it for export, von Laer believes the farm can net better prices by dealing directly with end-users.

Just as farmers in Canada suffered through the long period of low commodity prices that ended in 2008, that period took its toll on the Graf farm as well. However, von Laer is optimistic that prices will remain profitable well into the future.“I hope so,” he says. “Ten years ago, it wasn’t good. Wheat was selling for 120 euros a tonne (C$180).”

Now his focus is on efficient management to maintain high production levels. “Today, production costs are at 150 euros (C$225) per tonne for wheat,” he adds.

Variable-rate seeding and fertilizer application are

12 country-guide.ca

a key part of that strategy. And unlike North American growers who often look for a one-pass seeding solution, seeding and fertilizing are done in separate operations. Broadcast spreaders are the method of choice for applying fertilizer. And the farm uses NDVI (normalized difference vegetative index) technology to vary application rates during multiple passes over fields throughout the growing season.

That creates more uniform stands and saves the farm about 15 euros per hectare in nitrogen costs.

Relatively intensive tillage is still the production method of choice. But the farm, like many others, has moved away from using plows. “Produktion hier ist pfluglos,” von Laer says in German. Pfluglos, roughly translated, means “without the plow.”

To help mitigate problems of soil erosion in 2001, the German government offered farmers a 100-eurosper-hectare subsidy for five years if they stopped plowing and looked to other, better tillage implements. “There is a lot of straw that has to be incorporated into the fields,” he says through the interpreter.

So tillage is viewed as a necessary process.

But the cost benefits of pfluglos have been substantial. The high fuel usage and wear and tear on equipment when plowing added up. And von Laer likes the results he’s seen since parking the plows and using newer tillage implements that leave the soil in better, more stable condition.

As we walk a few steps into a young stand of wheat, he digs up a clump of dirt with a spade and holds up a handful of well-structured, moist soil. The smile on his face says it all. CG

September 2014

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business

Wicked problem It’s the latest buzzphrase, and agriculture is in the crosshairs

By Gerald Pilger

y nature, farmers are problem solvers.

Farmers deal with production, mechanical, financial, marketing, and business challenges on a daily basis, and the success of their farm operations depends upon their ability to solve those problems quickly and efficiently.

In fact, farmers are so adept at solving their problems, the temptation is to think that every problem can be solved. Or to put it another way, there aren’t any problems that can’t be fixed.

Unfortunately, in today’s shrinking world, that attitude may actually be creating problems for farmers, and those problems may be bigger and more numerous than in past.

Here’s why.

In the early 1970s, social scientist Dr. Horst Rittel formulated the concept of “wicked problems.”

He felt some problems are impossible to solve partly (but only partly) because of incomplete or contradictory information about them, or because of changing circumstances.

Farmers have never been as dependent on other businesses, government, and society in general What’s worse, attempts to solve a wicked problem often result in the creation of other problems.

While the concept of wicked problems was developed to address social planning and policy issues, it is very applicable to agriculture policy. In an Ivey Business School agri-food blog dated April 20, 2012, Dr. Nicoleta Uzea wrote: “What struck me the most from the event (Growing Our Future: Making Sense of National Food Strategies conference) was that both the conference presenters and the attendees referred extensively to key agri-food issues such as biofuel production, sustainable farming, business risk management and underinvestment in agri-food R&D as ‘wicked problems.’”

Uzea continued: “Unlike ordinary problems,

14 country-guide.ca

wicked problems are characterized by a lack of boundaries around the problem — e.g. a wicked problem is entwined with other problems, or a solution to the problem creates a new problem somewhere else. Also, wicked problems involve complex interactions and feedbacks among social, economic, political, and biophysical elements, so that even if there are solutions to the problem, they may be virtually impossible to determine or to implement. As a result, wicked problems can never be solved (in the sense that they can be eliminated), but rather they become better or worse. In addition, wicked problems involve a lack of agreement among the people affected by the problem as to what constitutes a good or bad outcome. This may be because different people are differentially affected, or it may be that there is a lack of shared values.”

Professors Domenico Dentoni and Otto Hospes of Wageningen University, Netherlands and Brent Ross, Michigan State University collaborated on a paper entitled “Managing Wicked Problems in Agribusiness: The Role of Multi-Stakeholder Engagements in Value Creation,” and there are a number of points in their paper which farmers need to consider: “Wicked problems have cause-effect relationships that are difficult or impossible to define, cannot be framed and solved without creating controversies among stakeholders, and require collective action among societal groups with strongly held, conflicting beliefs and values.”

“They (wicked problems) result in outcomes that are either uncertain or unknowable, and often affect multiple stakeholders throughout the agri-food system and beyond.”

“Agribusiness managers do not always recognize that these are wicked problems that require not only the adoption of technological innovations but also or primarily organizational change. In particular, addressing wicked problems requires firms to engage in strategic dialogue and to take action with a diverse set of stakeholders both inside and outside the supply chain at levels that have been uncommon in the agri-food sector” Most importantly, Dentoni, Hospes and Ross wrote: “Wicked problems cannot be resolved through finding ‘right answers’ or ‘solutions’ but rather, they must be managed.”

September 2014

business

Wicked problems in Canadian agriculture There are other wicked problems facing Canadian farmers and agriculture in this country beyond the four that Uzea listed, and many of them have an even greater and immediate impact on individual farm operations.

Issues such as water usage, land drainage, use of antibiotics in livestock production, and rail movement of grain can pit the individual farmer’s interests against those of other farmers, non-farmers, other businesses and society in general.

No matter what policy or action is proposed to address these problems, there will be winners and losers.

Attempts to “solve” other issues including GMO and biotech, environmental degradation, biodiversity loss, and even climate change could lead to huge impacts on farmers, depending upon the strategies adopted to address these issues and whether they are or aren’t in the best interest of farmers.

Solving a wicked problem There are three textbook ways that wicked problems can be addressed: authoritatively, competitively, and collaboratively.

Most farm problems are solved authoritatively.

The farm manager decides what is to be done to solve a problem and carries out that action. However this approach rarely works well when dealing with wicked problems because it is doubtful that an individual or small group charged with addressing an issue will have considered all possible points of view of the problem.

So, although the decision-making process is simplified in an authoritative environment, when policy and decisions are left up to a single person or small group, the views of some stakeholders can be easily ignored. A perfect example of authoritative decisionmaking is how the government handled the wicked problem of the Canadian Wheat Board. Without question, there have been both winners and losers from the action the government took to end the monopoly. At the same time, other problems have been created including unhealthy basis levels, shipping problems and a declining buyer confidence.

The jury is still out on how much the ending of the monopoly has contributed to these new problems, but two things cannot be denied. First, the ending of the monopoly has created problems, not just solved them. And second, we will not have a full understanding of the scale and cost of problems for years, if ever.

September 2014

Opposing points of view Most wicked problems are characterized by two or more groups with opposing points of view. A typical approach by policy-makers to address wicked problems is to pit the opposing groups against each other.

Unfortunately, each side is typically so focused on pushing their own position that they do not try to find the best overall solution. Instead, they fight for the solution that is simply best for their position.

This seems to be the way most wicked problems in agriculture are handled. Issues such as GMO and biotechnology have been made possible by regulatory approval, but then problems that are created by those approvals such as loss of markets and contamination of conventional crops are left to the opposing sides to fight over.

Rather than managing the problem, it continues to grow as each side defends the position more rigorously and rhetorically.

Consider the Better Beef campaign of A&W. While A&W is using the public’s negative perception of hormones and additives in food to market its burgers, ranchers see this as A&W attacking the quality of commercial beef.

A collaborative approach is the most desirable way to address a wicked problem. This requires engaging all shareholders in the decision-making process, and no action is taken on an issue until there is an agreed-upon strategy by all parties.

Unfortunately, this requires participants to be open minded and to look at an issue from both sides. It requires a lot of time, and sharing of knowledge.

Besides, the agricultural industry has become so fragmented, commodity-specific farmers tend to spend more time arguing among each other rather than joining forces to address the concerns the public has about overall modern farm practices.

Most farmers think of themselves as independent businessmen and women.

Instead, farmers have never been as dependent on other businesses, government, and society in general as they are now.

As a result, the problems farmers face are bigger and tougher to solve. Any solutions are likely to impact not only other farmers, but other businesses and the public.

It is critical that farmers work together in addressing wicked problems. Most importantly, farmers need to understand these problems are unlikely to ever be solved. The best we can do is to manage them! CG

country-guide.ca 15

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Looking for a safe bet Grain and oilseed prices are down across the board, but there soon could be some opportunities

By Richard Kamchen rain farmers across Canada are facing a stagflation-like, worst-of-bothworlds scenario heading into the fall of 2014 thanks to a badly timed combination of projected lower yields and weak prices.

When Canadians were hit by stagflation in the late 1970s, they got both barrels with stagnant economic growth and high inflation rates. This crop year, farmers are the ones forced to duck a two-pronged onslaught, which is coming from weather-related domestic production losses and large world supplies.

“After last year’s high prices and massive crop, we’re going to definitely see production down,” says Brian Wittal, a 30-year grain veteran and a market adviser with his company Pro Com Marketing in Alberta.

Significant Prairie area was lost this year — as much as four million acres, according to the CWB — either because it went unplanted through spring or was washed out by July flooding in southeast Saskatchewan and southwest Manitoba.

But abundant production elsewhere in the world is keeping grain and oilseed prices under pressure.

The USDA is predicting record U.S. corn and soybean production in 2014, with corn at 14 billion bushels and soybeans at 3.8 billion. It also expects a record world wheat crop of 716.1 million tons, with large foreign increases in Russia of six million tons, China, two million, and Ukraine, one million. With world wheat supplies rising faster than use, USDA pegs global ending stocks at a three-year high of nearly 193 million tons.

The Russia-Ukraine turmoil was initially bullish for markets, but expectations for a good harvest in those countries and the fact a lot of wheat is still available there heading into North American harvests bodes negatively for prices.

“Traditionally that part of the world by now has shipped itself out of wheat because they’re usually aggressive early in the fall, (but) a lot of wheat is still sitting in Ukraine and Russia because of the disruption,” says Wittal. “Buyers know all too well that there’s still wheat out there and that if they need to access it, they can.”

With the North American harvest right around the corner, buyers are going to wait and see what’s produced in terms of quality and volume before even thinking about buying more aggressively, Wittal says. “Prices are going to trend flat to lower until we see some issues 16 country-guide.ca

either with our harvest and quality, but there’s still going to be volume. There’s last year’s massive volume and you put this crop on top of it, world stocks are not getting tight or any tighter than they were before.”

Canola may have some profit potential, depending on crusher and exporter demand, and whether another transportation log-jam can be avoided this winter.

“The fact that we’ve got a large crush capacity, that’s always a supportive element,” says Chris Ferris, senior grains analyst with Canada Informa Economics, who adds export rumours suggest good foreign demand for canola seed as well. “The railroads have been moving grain fairly steadily the last little while, so the movement to export market should be broadly supportive for (canola) and the grain complex.”

A return to more normal rail service would be a boon for Wittal’s Alberta clients, among others: “If we can stay away from another logistics problem this winter, then the potential for prices to climb back up into the $10- to $11-a-bushel range is there. And at $10 to $11 a bushel when I pencil it out with any of my producers, they’re making money,” he says.

But Ferris emphasizes soybeans are overwhelming other potentially bullish factors, and if average canola yields end up reasonably good and other areas of the Prairies make up for the lost flooded acres, that’ll put further pressure on canola prices.

For Prairie farmers, lentils may offer the best hope, with values supported by flood-related production issues and strong demand.

“Since springtime, we’ve seen prices in the market go down from early forecasts, so you’ve got quite a few of the crops that have come down. The only ones that seem to be having a better gross margin look to be the lentils,” says Ferris.

Ontario Huge expected corn, soybean and wheat crops outside of Canada have also proven bearish to Ontario farmers.

Whereas Ontario grain producers might have thought they could generate healthy gross revenues earlier this spring, the reality has now shifted significantly to the downside.

Farmers are giving up serious revenue from where the highs were set in early May on corn, soybeans and Continued on page 17 September 2014

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“ We really do need a production problem somewhere in the world,” Kabbes says.“We’re not having that today — at least, we’re not perceiving that we’re having it.”

Continued from page 16 wheat, says Don Kabbes, market development manager for Great Lakes Grain.

The Ukraine/Russia situation inflated wheat prices in the spring, and corn went along for the ride. Now with the news being old in the market, the focus is on supplies, and they are ample.

“Whether it’s North America or the Black Sea, wherever you’re going to go in the world to buy your wheat, you can buy wheat somewhere,” says Kabbes.

Corn’s potential is limited as well. Not so long ago, prices were driven by ethanol September 2014

demand, but from a mandate point of view, ethanol has hit the blend wall. Then in 2012, the U.S. drought lifted values.

But now, record production is forecast.

“It all feels pretty heavy on commodity prices, and there’s not much driving the demand side of things because you’ve got pretty big crops elsewhere in the world — no production problems anywhere that we’re seeing. So that doesn’t paint a bullish story at all,” says Kabbes.

“We really do need a production problem somewhere in the world, and we’re just not having that today — at least, we’re not perceiving that we’re having it.”

Adding to the bearish tone are sputtering economies worldwide, which also dampen demand prospects, Kabbes says.

“You don’t have a robust economy that’s driving demand.”

Among the only factors that could boost prices are a smaller corn crop in the province and the possibility quality could be down. Ontario’s corn acres fell 15 per cent to 1.9 million acres, Statistics Canada reported last month, and a cool summer has slowed the crop’s development.

“And the crop is late to begin with, so the possibility of low test weight corn is very real,” says Philip Shaw, a market analyst and farmer near Dresden who grows 865 acres of corn, soybeans and wheat.

“The thing that’s helping the Ontario farmer today in corn is Ontario only planted less than two million acres of corn and we now have to import corn out of the U.S. to fill all our plants,” agrees Kabbes. “So that has increased value to the farmer today and that’s… maybe masked the severe Chicago price drop.”

Negative for both corn and soybeans could be the U.S. industry competing with other commodities like oil, coal and minerals for locomotives to move the crops to export position.

“The U.S. produces a record corn crop and a record soybean crop and has to export 15 to 25 per cent of that product out of the U.S.,” says Kabbes. “We’re going to see some depressed values from a basis perspective in the interior of the U.S.… if we can’t get rail cars to move it and barges are tied up.”

A weaker loonie, though, could provide some support for eastern growers.

“If the loonie ever decides to go down to 88 cents or 85 cents, that’ll lessen the pain, whether that’s in Ontario or Quebec,” says Shaw, who points out the Canadian dollar was the bullish story last year. “It’s what really helped in 2013.

Otherwise, if you had a par dollar, where would prices be? They’d be below futures prices and how would you like that?”

Stronger price opportunities in Ontario also come from larger premiums for non-GMO soybeans, Shaw notes.

But the big picture remains the province’s harvest prospects. “The weather’s not done with us yet, and a frost at the wrong time just wipes out this whole analysis,” Shaw says. “Any type of September frost will really change the game.” CG country-guide.ca 17

Incorporating sustainable intensification and climate-resilient systems into forages and grasslands

By Ron Pidskalny, Executive Director — Canadian Forage and Grassland Association

The World Congress on Conservation Agriculture held in Winnipeg in June promoted the practical application of conservation practices to improve agricultural sustainability. One Congress theme included the concept of sustainable intensification (SI). Assuming that the world population continues to grow at its current pace, it is expected to increase from 7.2 billion today to 10.9 billion by 2100. SI assumes that as the global population grows, demand for food, fuel and fibre will also grow. However, conservation agriculture may allow producers to intensify cropping systems and increase production sustainably, and without an excessive expansion in the land area required for food production through: • Improvements in soil quality • An increase in the efficient use of inputs such as labour, nutrients and water • An increase in the diversity of cropping systems

crop and livestock systems. This suggests that forage crops have a unique capacity to contribute to positive outcomes as the world moves towards SI and CRS. Currently, the onus is on the Canadian producer to increase the efficient use of inputs such as labour, nutrients and water in a profitable and sustainable manner.

One way to learn about these complex and interconnected farming practices is from a peer who has successfully mastered these systems.

The Congress also examined climateresilient systems (CRS) — well-designed conservation agriculture systems with a diversity of crop types and healthy soils.

CRS offer producers a range of choices for adapting to changes in rainfall or temperature during the growing season and contribute to climate change mitigation.

The latest of issue in L’Écho Fourrager, published by the Québec Forage Council, describes this type of peer-to-peer interaction at a recent forage tour, where a producer has implemented a dairy cow feeding strategy based on the use of high sugar content fodder. Results suggest that cutting forage in late afternoon, and leaving a 24- to 28-hour period between cutting and bailing, produces forage with higher sugar content and between 40 and 60 per cent dry matter. This concept has also attracted considerable attention throughout Canada from the beef sector, and is one of the topics identified as a priority candidate by CFGA as an Agriculture and Agri-Food Canada’s forage development and technology transfer project.

The scientific literature contains ample support for the key role of forages in improving soil quality, increasing the diversity of cropping systems and in mitigating the effects of climate change in

These are just a few examples of the resources that are, and will be, at the disposal of producers who strive to incorporate SI and CSE in their forage and grasslands operations.

CANADIAN FORAGE & GRASSLAND ASSOCIATION www.canadianfga.ca Ph: 780-430-3020

There will be further opportunities to interact with forage and grassland peers at CFGA’s Fifth Annual Canadian Forage and Grassland Conference, ‘Closing the Forage Gap’ — Addressing the Competitiveness of Forages in the Agricultural Landscape, November 17-19, 2014 in Bromont, Québec. For CFGA, this is a significant event as we bring together Canadian and international forage and grasslands stakeholders for our first ever FrenchEnglish bilingual conference featuring simultaneous translation for our speaker sessions. CFGA has lined up an impressive list of speakers including: • Dr. Gilles Bélanger, Laval University, and recipient of CFGA’s 2013 Leadership Award, who will provide an overview of major achievements in forage research and look into future challenges and opportunities for forage production • Dr. Bill Deen, associate professor, University of Guelph, who will cover the fit for forages in productive and sustainable Canadian cropping systems • Dr. Les Vough, forage crops extension specialist emeritus, University of Maryland, who will discuss the Eastern U.S. hay market’s challenges and opportunities for Canadian exporters • Mr. Alan Gardner, Haydar Group, United Kingdom who will bring us up-to-date on the Irish and Middle Eastern hay markets.

Please visit our website at www.canadianfga.ca/events/currentevents for more information.

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Make the most from the 2014 market Grain markets aren’t going to bounce back any time soon, says Calgary-based market adviser Errol Anderson. But that doesn’t mean there aren’t wins to be made

By Gord Gilmour, CG Associate Editor Grain and oilseed prices are reeling from massive global crops, and the growing consensus is that we may not see a bull run in the market at any time in the new crop year. In fact, the USDA’s latest long-range forecasts have got some analysts predicting we may not see another bull for 10 years.

Country Guide associate editor Gord Gilmour sat down with market analyst and columnist Errol Anderson in Calgary to talk about the market, what it’s been doing and what you should be looking for in the future.

Anderson sees tough markets ahead. But as you’ll read, he sees opportunities too… if you know where to find them.

Country Guide: The market has changed. What can you tell us about what’s been going on and where we might be heading?

Errol Anderson: In 2012, markets responded to the U.S. drought situation by moving up, causing many to talk about a new paradigm. But in reality that new paradigm only lasted about eight months.

The following season bumper crops, especially in Western Canada, brought prices back down to earth as supply met demand. This shouldn’t have been surprising to most people — we’ve seen this pattern again and again in the agriculture industry. This latest expression of the pattern was a particularly strong one, but it was still the same pattern, so we have a fairly good idea where we are in it.

Typically markets have four distinct phases. In the first phase the market begins to heat up and climbs. In the second stage the market peaks, often in a frenzy of activity. After the market peaks, there’s a period of hope, where people are waiting for it to come back. We’re just exiting that period now and entering the period of fear and panic, where people rush to liquidate and cover long positions.

Only after this has happened will the market stabilize, lick its wounds and recover from any overshoot. And only then will prices stabilize and begin to recover. In my view, much of that process is still ahead of us.

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Overlaying these cyclical concerns are unique macroeconomic issues that I think really should be watched closely. I am not a fan of quantitive easing by central bankers. It’s money printing, pure and simple, and it was designed to stoke inflation and prevent something central bankers fear — deflation.

But there’s a lot of debate over whether that’s actually worked, or has simply kicked the can down the road.

You can see that debate in the Fed (U.S. Federal Reserve) Minutes and even in what’s been happening in the stock market the last while as it has been dropping. It may still go higher, but the fact that it’s moving up and down demonstrates there’s a debate ongoing about the true value of this market. I think there’s a very good chance that the U.S. is headed down the same road Japan has been on since the 1980s — slow or no growth and in some cases even outright deflation.

The other big issue I’m watching is the European banking situation. Again, this is a hangover from the 2008 financial crisis, and again nothing has truly been resolved. It’s been on the back burner, but it looks like it’s beginning to heat up again. If these factors deliver a macroeconomic shock, it’s difficult to see how agriculture doesn’t get swept along.

September 2014

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Guide: Can you tell us a bit more about that concept of shopping your buyers?

Why is that important?

EA: Think about it from a grain buyer’s perspec-

tive who has two potential suppliers. One farm doesn’t want to tell anyone what they’ve got in their bins, because they want to keep that information to themselves, probably out of fear or of not wanting to reveal too much. Now contrast that with the operation that brings samples of everything that’s on the farm. It’s not even close. When those short-term opportunities arise, that’s the farmer who’s going to get the call first and have them offered. If they build a relationship with buyers, farmers will find that they’re better served and that opportunities appear. It sounds simple but it’s a very powerful tool.

Guide: So you’re not forecasting a quick return to higher prices?

EA:

No, I’m afraid not. I realize some farmers won’t welcome that news, but I also don’t think keeping it from ourselves is doing anyone any favours in the long run. The truth is, grain markets always spend more time in bear territory than bull territory.

On average, grain markets are in bear territory about two-thirds of the time. I don’t think anything has changed this time. Economics will always assert themselves over time, which is exactly what we’ve seen happen.

I think more than a few people in the market got carried away during the 2012 U.S. drought and really did come to believe it was different this time, that we were into a new paradigm and that soybeans really should be $17 a bushel. That led to a lot of investments and a lot of non-traditional money flowing into agriculture, which increased productivity. Again, it’s a pattern we’ve seen again and again. This was just the latest expression of it.

Now it’s not all doom and gloom. If you’re a good marketer, there will still be opportunities to lock in profitability. I think that’s a very important point. But it’s not going to be like it was in a rising market where finding those opportunities was easy — you’re really going to have to look for them, to shop your buyers, and to be ready to execute when they arise, because they won’t last long.

For example, this week, there was a 50-centa-bushel premium for No. 1 CWRS 13.5 protein, even in a falling market, because there was a buyer who needed that product and that need caused them to cry uncle and capitulate. But once that’s gone, it’s gone.

September 2014

Guide: What else can you tell us about what may happen as this plays out? It sounds like you’re expecting some pain to be felt down on the farm?

EA: Yes, unfortunately, I do expect that. What

I don’t really know — and nobody knows — is how much pain there will be. Some farms will be hurt badly. Some farms will go out of business. Some will survive and in the end do quite nicely. It’s all going to come down to management, and there are some really well-run farms out there.

In the end, I think the farmer who doesn’t understand markets — they don’t get that markets don’t care about cost of production, that markets are emotional, and that emotions are deadly in business — they’re the ones who are likely to be hurt the worst. We’re back in a time where it’s going to be very important to treat your bottom line with respect, sharpen your pencils, cut your costs — where you can — be very strategic about marketing.

We also could see some deflation in the sector.

We certainly saw inflation on the way up. Land prices could fall. I certainly expect to see cash rents come down as the new reality sets in. Equipment prices, especially for used equipment, could also fall. It could even affect the price of inputs such as fertilizer.

Then there’s also the question of some of the money that’s found its way into the sector in recent years: corporate money, investor money, offshore money — call it non-traditional sources.

I’m not sure how patient that money is, or how willing these investors are going to be to ride out a period of lower returns before they want to liquidate and find something with higher returns. Or it’s possible that some of those macroeconomic shocks could force them to liquidate. That’s an unknown.

Continued on page 22 country-guide.ca 21

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Guide: Tell us a bit about how to get emotions out of marketing. What would a well-managed marketing plan in a bear market look like?

EA: This strategy is a mix between utilizing cash

contracts and a commodity trading account. It starts with pricing a portion of your crop using a production contract — say 10 or 15 bushels an acre of canola. Going beyond that, of course, you risk incuring production penalties if there’s a shortfall.

Basis levels also need to be monitored by the grower. But should futures and local cash bids continue to rise on weather issues, it’s time to scale in put options to take advantage of these higher prices.

Often basis levels weaken during a futures market rally. In other words, the cash market doesn’t keep up to the futures. The advantage of puts in this scenario is that it doesn’t commit the grower to produce and deliver the grain to a buyer and there is no margin call risk. This helps keeps grower emotions in check.

It’s important for the grower to realize that the best-case scenario is when these put options expire worthless. This means the local cash price held up.

But markets seldom work that way. Rallies are often short lived, but offer excellent pricing opportunities.

Bear markets characteristically don’t allow the bull to run very long before selling pressure reappears.

I believe we are in that type of market right now.

“ If you’re disciplined and keep your emotions in check, over time you will come out ahead.”

Guide: In your opinion, what’s the best general tool for hedging at the farm level?

EA: I’m not a huge fan of using futures outright, because it takes a strong person to take a margin call. I am a big fan of using options — calls and puts.

It’s not as strong a tool as, say, straight shorting the futures market, but it keeps you disciplined and keeps your emotion in check. The people who did well using futures recently — and I had several clients who did — were extremely disciplined and they had the guts to take margin calls, stick by their position, and even add some more positions while they were at it.

It got kind of ugly, but in the end, now that it’s turned, we’re sending cheques home, and I love it. But that’s not for everyone. Everyone’s appetite for risk and their ability to weather those sorts of things is different, and we as market advisers need to respect that.

When we start working with a new client, we’re 22 country-guide.ca

constantly trying to gauge their ability to weather risk and we make recommendations accordingly. For a lot of people, a put in a rising market, which gives you the option to sell at a price but doesn’t have a delivery attached to it, is a good tool. It’s more like an insurance premium, and it helps you remove a lot of the emotion from the decision and gives you the chance to lock in profitability now, but still gives you the opportunity to participate in the upside of the market.

Guide: Do farmers use these sorts of tools enough? Or are they still too hung up on holding the actual grain, rather than moving the grain and buying the paper?

EA: I think they have been, but that might be

changing. I’ve been in this business a long time, many years now, and last fall, for the first time, I had a number of clients say to me “Why don’t we sell the grain, instead of storing it, and just buy the paper instead?” That was revolutionary.

Unlike other market advisers, I don’t favour storing grain, which I know is not a particularly popular opinion. But to me, stored grain is nothing but a liability.

There’s just so much that can go wrong. If you move that grain and buy the paper, you’re protected. You’ve got the money in your hand, but you’ve still got the chance to participate in any increase in markets.

Now, it’s still important to be patient when you do this, even with options. It can feel like you’re throwing good money after bad sometimes. But if you’re disciplined and keep your emotions in check, over time you will come out ahead.

Guide: At the risk of floating you a softball question and letting you talk yourself up, why should farmers use the services of someone like yourself, and especially during a time like this in markets?

EA: (chuckles) Well, it doesn’t actually have to be us, there are a number of really good market advisers and commodity brokers out there. But I do think it’s important to have someone like us in your corner, especially during these most challenging times. There are a lot of younger farmers out there now who probably haven’t seen this kind of market. I think they’d benefit from having someone with a bit more experience who’s seen a bit more of what can happen in markets. For example, I remember on 9/11, when the second tower went down and all our screens went blank. That’s an extremely dramatic example, but you get the idea.

And for everyone, regardless of their personal experience level, I think there’s a lot of value to be found in having someone working on marketing that’s like us — less emotionally involved, a paper pusher, almost. I’ll say it outright just to emphasize it: emotions are deadly in business. CG September 2014

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Talk to your local Pioneer sales rep or visit pioneer.com for more information.

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September 2014

business

Charting a profit Theory is great for textbooks. In real life, farmers like Stan Jeeves, need practical marketing programs, which they’re building for themselves

By Lisa Guenther, CG Field Editor

tan Jeeves runs a mixed farm near Wolseley, a southeastern Saskatchewan community once named one of Canada’s prettiest towns by Harrowsmith Country Life Magazine.

Jeeves takes a common-sense approach to selling grain. “I start with calculating my cost of production,” Jeeves says. “And then I know when I need cash flow.”

From there, Jeeves looks for delivery contracts that are above his cost of production and within the time frame when he wants the cash.

It all sounds simple and natural, and a sure way for anyone to win in the markets every year. But that can be deceiving, as you learn the further you delve into Jeeves’ marketing systems and his belief in the critical importance of charts.

Farther east, Dale Gryba also focuses on a similarly practical approach. It isn’t that Gryba doesn’t know the more sophisticated lingo of marketing textbooks and the MBA schools. But, says Gryba, he doesn’t actually market his crop. He sells it.

“We are simply sellers above the cost of production,” says the Manitoba farmer.

“Marketing,” he says, is done on behalf of farmers by organizations such as the Canadian International Grains Institute that differentiates the Canadian crop for world buyers.

Farmers are selling a commodity, Gryba says. They have few means of differentiating their crop from that in the bin down the road.

But that doesn’t mean Gryba thinks he always has to be a price-taker. In fact, avoiding market troughs comes down to taking charge — with a plan.

September 2014

Know, and control, the critical numbers Cost of production also underpins Gryba’s plan, helping him to sell at a price that covers costs and still gives him “a little bit of spare beer money.”

When it comes to managing costs, Gryba takes his cue from Ford Motor Company. “It knows its cost of production. And it knows what it can sell that car for. So it just makes it cheaper.”

Gryba pre-prices inputs, buying fertilizer in the fall, but acknowledges that takes cash. When cash flows have slowed to a trickle, cutting seeding costs is another option, Gryba says. “If you haven’t got much cash then you seed oats or the grasses… And hope for a Hail Mary.”

Gryba farms near Gilbert Plains, in the parkland of southwestern Manitoba, just a stone’s throw from the rail line. Loading producer cars also lowers Gryba’s costs. “We can get a dollar and a half more by putting wheat in a rail car versus going to the elevator for ourselves,” he says.

That discipline extends beyond controlling costs and knowing the numbers. Both Jeeves and Gryba put that self-control into action when selling by using commodity pricing charts.

Gryba took courses over 20 years ago, in the days when they had to handwrite their charts, and says knowing how to use the charts is magical. They take the guesswork out of unpredictable world events such as war or floods or droughts, he says.

Continued on page 26

country-guide.ca 25

business Continued from page 25 “You can draw a line on a chart and watch it hit it,” says Gryba.

Jeeves and Gryba both say commodity charts take the emotion out of selling.

“People like to think this is all new — the commodity funds influencing the market and one thing and another — but the market has traded on weather and emotion forever and it always will as far as I can see,” says Jeeves. “So that’s where the charts come in.”

Jeeves also looks at commodity price charts and daily newsletters to figure out whether the price will climb or fall.

He says the money tends to enter and leave the market at the same point. “So if you’ve seen the recent highs have been $450 in canola in the last three months, then next time it’s at $450 it’s probably a good idea to sell some,” he says.

Farmers need to avoid both fearbased selling and the temptation to try to catch the top of the wave. Holding out for the high point is essentially betting against industry, says Gryba, which is a losing strategy in the long run.

“If you did beat Cargill once or twice, it’s like Vegas,” says Gryba.

Gryba says farmers don’t have to have their entire crop priced out September 1, but they should have a large portion figured out at a price that will make them happy.

For example, if a farmer wants $10 for canola, “when canola hits $10, then you sell some at $10. You don’t wait until November when you and 40,000 other guys need money. Everybody knows (about) November 1 payments,” Gryba says.

“You’ve got 24 or 30 months to sell a crop,” says Gryba, who adds “there’s an old saying too that usually you have at least two opportunities to make a profit, even in a poor year.”

Dealing with the transportation snarl-up Gryba compares the transportation issue to the dispute between hockey players and team owners.

And farmers aren’t the billionaires in this scenario, Gryba adds. “All I want to do is play hockey. Just let me over the bench, coach,” he says.

But it was pretty hard to play hockey this year. Producer cars ordered in January didn’t arrive in the Gilbert Plains

“The market has traded on weather and emotion forever,” Jeeves says.

“That’s where the charts come in.”

26 country-guide.ca

area until August 5, Gryba says. March cars weren’t expected until the end of August or September. Farmers can’t deliver on a contract if the train doesn’t come, Gryba says.

Jeeves says the inability to move grain when needed forced farmers to give up the carry in the market.

“That’s been unfortunate and has cost producers money,” says Jeeves.

For his part, Jeeves wasn’t always able to sell crops when he needed cash flow this year.

“Fortunately, by having cattle that were very marketable, we were able to move our cattle marketing up some to cover off the lack of cash flow from grain,” he says.

Gryba also had an ace or two up his sleeve. He contracts high erucic acid canola with Bunge, which gives him peace of mind, he says.

“They give you a price in advance, a year ahead. And they take all you can grow,” says Gryba, adding the canola is delivered to a crushing plant in Nipawin, Sask. Bunge generally takes portions of the crops throughout the year, and offers a cash advance program, Gryba says. The contract also includes an Act of God clause.

Gryba would like to see the industry offer more Act of God clauses in delivery contracts. He points out big farms with, for example, 10,000 acres can risk pre-selling more of their contract without such clauses because they know they’ll likely get an average yield over their entire farm. But farmers with less dirt are reluctant to sign such contracts because of hail and other weather risks.

Although big farms might have an advantage when it comes to spreading risk on pre-pricing contracts, bigger isn’t automatically better, says Gryba. It still comes down to management and having a plan, he says.

“Forget about selling everything at the highest — it isn’t going to happen.

It’s not getting caught in the bottom third all the time,” says Gryba. “If you have a plan, you won’t be in that bottom third.”

Jeeves jokes that staying in business is perhaps a measure of success. “Selfevaluation is always a tough criteria to meet,” he says.

Ultimately meeting targets, and avoiding scrambling and illogical decisions “because you’re in a corner because of financial pressures” are signs of a solid marketing plan, says Jeeves. CG September 2014

To make a utility tractor this good, we listened to your hands No doubt you have to think on your feet in today’s fast paced world. But when you’re working with the new 6D, you’ll notice how easy it is for your hands to operate the controls.

And that’s the point … we moved critical functions to the right of the seat, which makes operating the 6D incredibly easy. Chores can be accomplished with simple, intuitive movements.

No twisting, bobbing or gymnastics required.

A cab designed for convenience and comfort Not only will you fnd everything right where it should be – making the 6D convenient to operate – you’ll enjoy a cab built for comfort … especially for an economical tractor. Settle into the cushy seat and take a look around. All that glass gives you a clear view of your work. There’s an available workspace for your laptop. And the climate control system will keep you cool under the collar. Or warm when it counts.

And if you choose an open station model, you’ll fnd the controls right where you expect them to be.

Switch from 540 to 1000 RPM in about 30 seconds … with no mess.

Hitch lift capacity up to 7,300 pounds.

Power without the price The 6D is tough on work but won’t rough up your checkbook.

Pick any model – 105 to 140 hp – and you’ll be surprised at the how affordable the 6D is for the performance you get. The 4.5 L PVX and PWX engines have a 25% torque rise and still manage to produce predictable power and fuel economy. To make sure the 6D stays economical over the long haul, regular maintenance will cost you less than a typical family sedan.

Two new transmission choices help you gear up for utility work Pick the 12F/12R or 24F/12R and get the right speed for the job. Both come standard with a left-hand PowrReverser™ for no-clutch loader work.

With all the controls right where you expect them, operating the 6D is easy.

Performance for the real world Lift heavy, dense bales with no problem. Or cycle power hungry implements. With up to 20 GPM of hydraulic capacity and a Category II 3-point hitch with 5,500 pounds (2494 kg) of muscle – or an optional 7,300 pounds (3492 kg) of lift – your 6D is ready to go.

Uptime and productivity come standard From the PTO that you can change from 540 to 1000 RPMs in less than 30 seconds – with no mess – and the global carrier designed to make loader attachment changes a snap, to the easy controls and economical operation, you’ll have everything you need right at your fngertips. And nothing you don’t.

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BUSINESS

When good deeds are

GOOD BUSINESS More than a trend, projects where farm organizations work with charities to feed hungry people are becoming essential business practice. Here’s why

By Lois Harris

Beef producer Bob Gordanier (l) presents $40,000 cheque to the food bank's Bill Laidlaw.

hen Bill Laidlaw was general manager of the Chicken Farmers of Ontario, he had no more insight than anyone else into what food banks were, what they did, or how they operated.

Now, as executive director of the Ontario Association of Food Banks (OAFB), he spends a lot of his time lobbying the government, companies and organizations to help keep his charity running, providing food to nearly 400,000 hungry people, many of them women, children and seniors.

Laidlaw has been encouraged recently with commodity groups that have revitalized old donation

28 country-guide.ca

programs or started new ones. They’re catching on all across the country, and the Ontario example shows how and why.

“Farm organizations recognize it’s the right thing to do,” Laidlaw says. “It’s good public relations, it shows they are good community citizens, and I think they realize that many people who use food banks come from rural areas.”

Having enjoyed a good relationship with the Dairy Farmers of Ontario for years, the OAFB recently reached new agreements with Ontario Pork, the Egg Farmers of Ontario, and the Beef Farmers of Ontario. Each organization approaches its contributions differently, but the results are clear. A lot of

SEPTEMBER 2014

BUSINESS hungry people who need it are getting good wholesome protein in their diets.

Other commodity groups are engaged in other partnerships to achieve similar ends. The Ontario Fruit and Vegetable Growers’ Association, for instance, is working directly with the province to send wholesome snacks to school kids in the north.

Meanwhile, Ontario Pork wanted to revitalize the Donate-a-Hog program started in 1998 by longtime agricultural advocate and producer Paul Mistele.

Former board director Mary Ann Hendrikx and her husband Lyle, along with staff from the organization and the animal health company Elanco redesigned the program so it would reach more people. With the board’s approval, the program was piloted in the summer of 2013.

Under the new program, Ontario Pork, representing 1,600 producers, encourages processors to match, dollar for dollar, its $10,000 annual contribution. It provides funding to processors who then ship one-pound packages of ground pork to food bank distribution centres. Zoetis, Shur Gain, Elanco and Bob and Wendy Fraser added their contributions for last year’s successful pilot, which saw 10,000 pounds of ground pork distributed out of centres in Windsor, Sarnia, Chatham, London, Stratford, Guelph, Hamilton and Owen Sound.

The main reason Ontario Pork revived the program was to give back to the community. “As farmers, we all live in rural communities, and are supportive of them,” says board chair Amy Cronin, who farms at Bluevale, Ont. “We want to help people faced with difficult situations, because we can also relate.”

Another reason is to get more people eating pork. The distributed packages come with tips on how to safely cook the meat, plus recipes that are both easy and tasty.

“With this program we are able to expose people to a product that they may not have previously tried, so we want them to have a good experience with it,” Cronin says.

This year, the campaign got underway at the end of July, and was expected to put 10,000 pounds of ground pork into dozens of central Ontario food banks.

In March, the Egg Farmers of Ontario (EFO), representing 460 producers, committed to donating at least $250,000 worth of product this year to the province’s food banks.

“We got involved because it’s a way of showing our social responsibility,” says Scott Graham, chair of the Egg Farmers of Ontario. “It’s the right thing to do.”

Continued on page 30

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business Continued from page 29 Individual egg farmers had been donating to food banks for a long time, but the board decided to take a province-wide approach as part of its 50th anniversary celebrations. A presentation by Bill Laidlaw to the board a couple of years ago in which he described the need started the ball rolling.

Under this program, egg farmers and others are encouraged to donate at least $50 to the EFO. The sum is the cash equivalent of one hen’s production for one year, or 25 dozen eggs. The organization then provides $20,000 a month to the food bank association and arranges for extra birds to be placed in either the donor’s barns or those of another producer who is willing and has extra space.

The OAFB then buys the eggs from suppliers Gray Ridge and Burnbrae, who donate the grading and processing costs.

School kids in isolated northern Ontario communities get fresh fruits and vegetables, thanks to a partnership between growers and the province.

Graham has taken the commitment to heart by personally contributing $5,000 — the equivalent of 100 hens’ production. While total donations so far are about $30,000 with 30 producers having contributed, he is confident that more will get on board as they replace their birds, which they do once a year.

Meanwhile, in June the Beef Farmers of Ontario (BFO) announced a $40,000 commitment to a new partnership with the food banks association.

“The reason we got involved is that I think it’s hard to believe that more than 375,000 Ontario people including 131,000 children access food banks every month,” says chair Bob Gordanier. “We learned that from a presentation by the food banks people last year, and also learned that protein is by far the most needed item.”

30 country-guide.ca

“They asked if we could help,” Gordanier says.

“We said we could.”

The BFO provides the funding to the OAFB, which then buys the ground beef and distributes it where it is needed the most. This year’s contribution will buy 28,000 servings for hungry people.

Gordanier says that many individual beef farmers and county associations have been donating for years, but this is the first time the provincial organization has contributed on behalf of its 19,000 membership.

“Our producers are proud of having the name Beef Farmers of Ontario attached to something as important as this,” Gordanier says.

Earlier this year, the Ontario Fruit and Vegetable Growers’ Association (OFVGA), with 28 member organizations representing more than 7,500 fruit and vegetable farmers, expanded an eight-year program that provides fresh snacks to schoolchildren in northern Ontario.

The Ministry of Health is providing the OFVGA with about $1.1 million each year for the next three to give 38,000 kids in 191 schools fruit and vegetable snacks twice a week. The program runs for 20 weeks starting in January.

All the logistical and procurement work is done centrally through OFVGA program co-ordinator Alison Robertson. She says that the program started nine years ago when her organization was approached by the ministry to help deal with obesity and other health problems that were showing up in school-aged kids in the north.

“At the time, some people thought it wouldn’t work — that the kids would just throw the snacks in the garbage,” Robertson says. “There was some waste in the first month, but after that it went to zero, and eventually teachers started to report that they were seeing fresh fruits and veggies showing up in the kids’ lunch boxes.”

In the fall, Robertson starts lining up suppliers and transportation and is ready to roll in January.

Each of 11 to 14 growers provides product two or three times through the next five months, and each receives fair market prices for their efforts.

“We realized that it wouldn’t last very long if we kept asking people to just give their products away,” Robertson says.

As a result of the volumes, Robertson pays wholesale prices, and has refined her distribution system over the years so that it now works very smoothly and she can keep a close eye on both the budget and food safety, including product handling and traceability.

With the program’s expansion this year, a deal with the North West Company retailer sees the snacks hitch a ride on the company’s supply planes to communities like Peawanuk and Attiwapiskat.

The goal of the program is not only to bolster the children’s health, but to also encourage youngsters to develop a lifelong habit of eating fresh produce.

The association knows too that it also provides the OFVGA with leverage when the organization lobbies the government on behalf of its grower members. CG September 2014

business

The consumer connection Meeting Lynn Ogryzlo in the heart of Toronto’s food district, we wonder if maybe the chasm between farmers and consumers isn’t as deep as we thought

By Steven Biggs, CG Conributing Editor

In Ontario alone, Ogryzlo’s $10 challenge would pump $2.4 billion more to food producers.

ag-toting shoppers amble past me on either side as I snag a table near the bakery. It’s already 2 p.m., and the pickedthrough bakery racks confirm that it’s too late to get the best-of-the-best fresh food at Toronto’s St. Lawrence Market.

Even so, the place is still a hive of food lovers.

That’s because by midday, the shoppers change. The hard-core grocery browsers give way to a hard-core, hungry lunchtime crowd.

Either way, they love their food. They also know a lot about it, and it looks like they want to know more, although I wouldn’t take any bets on how much they know about Canada’s farms.

Along with the lunchtime crowd and grocery shoppers, though, some people just come to hang

out and chat — people like food writer Lynn Ogryzlo and me. As coffee spots go, the floor-mounted melamine table with attached plastic chairs we sit at isn’t pretentious — and neither is Ogryzlo. I’ve barely shaken her hand before she apologizes about the garlic smell from the pastry she’s brought to munch on during our meeting.

I’ve been hoping to meet Ogryzlo because she’s a food columnist who talks a lot about what many food writers don’t: farmers.

In her 2011 bestselling book, T he O ntario Table, Ogryzlo serves up recipes for Ontario-grown food, pairing each recipe with a blurb about a farmer. There are grower stories, recipes, and culinary destinations. A column on farmer Fred de Martines and his Tamworth pigs accompanies the recipe for pork patties with nectarine relish, while the page on simmering beef features the O’Brien Farms Simmental herd at Winchester, near Ottawa.

It’s more than just a cookbook, and Ogryzlo takes a hard-to-define, sometimes disparaged concept — local food — and boils it down into a clear, compelling message called the $10 Challenge. It’s nice marketing: $10 each and a billion-dollar impact.

She explains in the book, “If every household in Ontario spent just $10 of their grocery budget on local foods each week, there would be a $2.4-billion influx into the provincial economy each year!”

In a world where farmers complain they’re misunderstood and ignored by consumers, Ogryzlo might be our best indication of what happens when a person of good intentions, open mind, and an intelligent curiosity begins to look closely at their food.

The culinary activist A self-described “culinary activist,” with a focus on locally grown food, Ogryzlo is quick to make the distinction between activism and extremism. She recounts travelling to Chicago and making a social media post about Chicago food. She was shocked to get an indignant response from a follower who was upset that the post hadn’t been about Ontario food.

She shakes her head, saying, “It’s not absolute.”

Another time, she met someone who hadn’t eaten a mushroom for a year because he couldn’t find Continued on page 32 September 2014

country-guide.ca 31

BUSINESS Continued from page 31 locally grown ones. “It doesn’t matter,” she exclaims, adding, “It’s not a diet, like the Atkins diet or Weight Watchers diet! That’s not the point.”

The important point, she feels, is that shopping with local food in mind has the power to make farming sustainable for farmers. It requires neither absolutes nor a black and white, 100-mile-diet dogma.

(Although she does like the book THE 100-MILE DIET because it gets readers thinking about the food system.)

Food and community Ogryzlo grew up in the community of Thorold in the Niagara region of Ontario. The granddaughter of Italian immigrants, she describes it as a community with a heavy Italian presence where people hung out on front porches to chat. She remembers the farm truck picking up local women to work on nearby farms, and, at the end of the day, the women being driven home, legs hanging over the tailgate, balancing bushel baskets of seconds for their own use between them.

“The people who worked on farms were the people who lived in our neighbourhood,” she recalls. It was a community where food played a pivotal role.

If there was extra produce in those bushel baskets, it was shared, with a jar of some sort of preserve given in return at a later time. Food was used to celebrate, to mourn, and to nurture the sick. “It made us a really strong community,” she says.

It’s still that power to foster community that she sees in food — and in people’s shopping habits — today.

Her own community — the Niagara region — used to include 20 canning factories, she says. But now there are none. Today, she sees more tourism.

That’s fine, but she feels there is an opportunity to attract tourists for agriculture too. That was the idea when she helped found the Niagara culinary trail, a culinary tourism organization connecting consumers to farmers.

THE ONTARIO TABLE THE ONTARIO TABLE (www.ontariotable. com) is Ogryzlo’s third book, following in the footsteps of NIAGARA COOKS, FROM FARM TO TABLE and N IAGARA C OOKS , A SEASONAL APPROACH. For this book, she explored beyond her home base of the Niagara region, taking weekend trips over two years to different parts of the province to meet farmers and taste food.

Her regionally focused books and local food have some parallels: both are on the fringes of conventional marketing and distribution channels.

“In the publishing world, everyone thought I was nuts!” she tells me with a laugh.

In the book, Ogryzlo tells readers not to worry about following recipes to the letter. She hasn’t followed the standard publishing recipe to the letter 32 country-guide.ca

either, opting instead to self-publish her books. It has worked out well, as all three have been bestsellers, and she has won a number of international awards.

Without the distribution infrastructure that a publisher would have, she built her own network, selling books through on-farm stores, including many of the farms featured in the book. “It’s the largest margin item in their store,” she says. Eventually, the distribution channels came to her because of consumer demand for her books.

$10 challenge magazine While THE ONTARIO TABLE includes a section that lists suppliers of things as diverse as soy sauce, salt, flour, nuts, and cornmeal, Ogryzlo found that people still had difficulty with the shopping side of eating locally. In response, she did more travelling and then put out an electronic magazine (now combined into an e-book) called THE ONTARIO TABLE $10 CHALLENGE, A YEAR OF EATING LOCAL, in which she worked with 25 agricultural commodity groups to get facts for consumers about Ontario food.

Markets and farm gate stores are great, she says, but they aren’t the only way to support local farmers. When it comes to shopping for local food, Ogryzlo tells me, “The grocery store is a good place to find local food.” She laughs as she describes trips to her local grocery store and people peering into her cart to see what is in there. While some people connect the idea of local only with fresh produce and meat, Ogryzlo includes all foods raised and produced in Ontario. That can include common things such as meat, tinned goods and dried beans.

Industry playing catch-up Ogryzlo feels that consumer confusion about the definition of local food is a result of the movement being a consumer-driven — not industry — trend.

“The local food movement sweeping the country is led by consumers and I think this is the very reason we face challenges such as lack of distribution and an agreed-upon definition of local food,” she says. It’s a case of industry catching up to consumer demand.

In the meantime, Ogryzlo is gearing up for a new audience. She and her husband have just moved from the Niagara area to Toronto — and she’s looking forward to writing for a new slate of publications. She says she has always wanted to live in a big city. “Toronto was more doable than Paris,” she says with a chuckle.

She’s not at all worried about missing out on farm-fresh produce in the city. “In the city, people are more fortunate,” she says as she talks about urban markets often attracting more farm vendors than smaller centres.

When it came to picking a neighbourhood in Toronto, food was important — so she’s not far from the St. Lawrence Market. As we finish chatting, we leave the table in the bakery aisle. We head our separate ways, each of us to shop.

I keep my eyes on all the consumers in this one market, and I have $10 in mind. CG SEPTEMBER 2014

SEPTEMBER 2014

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SEPTEMBER 2014

PAGE

Corn in the ‘real’ east Saying yes to no till Watch the market’s timing Exploding in the West A market for your cobs Conservation versus vertical tillage

4 8 13 17 20 26

What the world doesn’t know

W

e really should nickname it the impossible crop, because it’s impossible to imagine the shape of Ontario agriculture today if this wild Mexican grass hadn’t been tamed and traded by hundreds of generations of native farmers, or if it hadn’t been hybridized in the 1930s.

Will it soon be impossible to imagine the Prairies without corn as well? And the Maritimes?

The productivity of corn — and of the farmers who grow it — is nothing short of stunning. Consumers don’t understand this. When they think of farmers, ideas of productivity and efficiency don’t come even remotely to mind.

But think of just a few examples. Consider for example, how North America’s farmers now send as many bushels to ethanol plants as they grow for feed, and how they do this without shorting any other markets.

Consider also how farmers rebounded from the worst drought in a century in two short years, and have built up surplus stocks again.

Consider too how breeders have built astonishing yields into today’s seed, and then consider how a business-smart company like Monsanto can bet that Western Canada’s farmers will be growing eight million to 10 million acres within 10 years.

Corn Guide, September 2014

Consider as well how corn farmers saved consumers from the food inflation that the world’s media foretold just last year, and consider how corn — and the livestock that will be grown from it — is the core meaning of progress for China’s rising middle class.

Then consider that, as they read this, Canada’s corn farmers are heading out to the Outdoor Farm Show, they’re getting ready to monitor corn yields, and they’re planning a winter full of research and investment all so they can do an even more productive job of growing corn next year.

Who could ever have dreamed that corn farmers could achieve this much?

It isn’t only China’s economic hopefuls. The entire world doesn’t know that it has decided to rely on corn and on the farmers who produce it. Nor would they believe us even if we showed them incontrovertible numbers and a mile-thick stack of studies.

But the world did somehow decide to build its future on corn, and it did decide to pin its collective hopes on the skill and the dedication of its corn growers.

And it turns out, the world was right.

How utterly, impossibly crazy is that?

Tom Button, CG Editor tom.button@fbcpublishing.com 3

Cornguide

Corn in the ‘real’ east Farmers like Nicholas de Graaf are why Nova Scotia is a happening place these days

By Ralph Pearce, CG Production Editor

M

aps might show the way our country actually is, but not the way we think about it. To many grain and oilseed farmers in Ontario, for example, Canada might as well stop at the far Quebec border, where la belle province butts up against the Maritimes.

Heck, to be honest, many Ontario farmers wonder if their kind of agriculture doesn't actually stop at the near border, where Quebec and Ontario meet (or fail to meet, as the case may be).

And make no mistake, their myopia can seem justifiable. After all, most of Eastern Canada’s highest-yielding and most-intensively farmed operations are in southern Ontario, as are most of Eastern Canada’s agribusinesses, and the lion’s share of its research spend, including at the University of Guelph.

And of course, if Ontario thinks agriculture stops at Quebec, that’s nothing compared to Western Canada, which is inclined to ask if agriculture survives east of Winnipeg at all.

The problem is, those old stereotypes can blind the rest of the country to some of the very interesting things going on in some quite unexpected places, including a quiet corner of Nova Scotia.

A grain and oilseed awakening is underway in parts of the Maritimes. Since the mid- to late 2000s, potato farmers on Prince Edward Island have been boosting their soybean acreages, and an increasing number of farmers in Nova Scotia have been adding corn and soybeans to their operations. According to Statistics Canada figures from 2011, corn acres in Nova Scotia have increased 77.4 per cent since 2006. Soybeans were three times their 2006 level.

Of course, that still left corn at a mere 13,701 acres, and soybeans at 8,776. But those numbers can be deceiving, as you’ll see.

Why wait for infrastructure?

It’s in this setting that Nicholas de Graaf, who farms in the Annapolis Valley, west of Halifax, is forging his own path. For roughly seven years, de Graaf has been growing a three-crop rotation of corn, soybeans and wheat, moving closer to self-sufficiency for the feed his operation needs while also building a reputation as an innovator and early adapter.

De Graaf works his home farm of 150 acres near Canning and also owns land near Centreville and the surrounding area, for a total of roughly 480 acres. On top of that he rents nearly 800 acres dotting the region as far away as Blomidon to the northeast, and Billtown to the west.

4

Corn Guide, September 2014

Not surprisingly, his soil types vary almost as much as the different terrains he manages, from some sandy loam on his home farm to the heavier clays on some of his rented ground.

“Originally, we were a poultry farm — chickens and turkeys — and when I came home to the farm, I decided that I wanted to build a feed mill,” says de Graaf, who returned to the farm after earning his degree in agricultural economics from Nova Scotia Agricultural College.

“Once I built the feed mill,” he continues, “it became pretty evident that I should be growing some crops to put into the feed mill, so I’m self-sufficient for all of my production in corn.”

To add to that initiative, de Graaf put in a soybean extruder to enable him to feed his own soybeans without first having to take them off farm. Today, he estimates he’s between 55 and 60 per cent self-sufficient with his soybeans. As for his wheat, since he’s self-sufficient with the other two, he grows wheat primarily as a rotation crop, selling the harvested grain while keeping the straw for bedding.

Photo: light and lens

With his average yields approaching 150 bu./ac. thanks to new genetics, corn has earned the right to be a permanent part of his diverse operation, de Graaf says. “It’s a whole different world now.”

Corn Guide, September 2014

“At first, I just started growing wheat before I even had the feed mill, putting it into a commercial ration and diluting it,” says de Graaf, adding that such a practice was commonplace 10 years ago or longer, and is still used on some poultry farms today. “Then once I built the feed mill and realized I could actually use the ingredients directly, I started into corn and then soybeans after that.”

For the 2014 growing season, de Graaf has 790 acres of corn, 520 acres of soybeans and 150 acres of wheat. Again, his corn production means he has self-sufficiency for his poultry operation, but he could grow up to 700 acres of soybeans to reach self-sufficiency on that crop. He’s also constructed enough storage capacity that he can store the entire year’s crop needs for the poultry operation — roughly 3,000 tonnes.

Continued on page 6

5

Continued from page 5

All he needs now is some more land.

That level of self-sufficiency means de Graaf hasn’t had to wait for the fledgling grain infrastructure around the Maritimes to size up, although in 2009, as more growers showed interest in growing soybeans, processing facilities began to pop up, including sites at Belle River, P.E.I., Sussex, New Brunswick and Lawrencetown, Nova Scotia.

But just as soybean and corn production has been slow to increase in the northern Ontario districts of New Liskeard or Thunder Bay, it’s that lack of processing facilities, compounded by high shipping costs that has stemmed any big jump in corn and soybean acres farther east.

It’s beginning to change, but whether they’re located on P.E.I. or in New Liskeard, the farms that are planting corn and soybeans still tend to be operations that can feed what they grow, the same as de Graaf.

The eastward migration of corn and soybeans, however, has been made all the easier by the development of shorter-season varieties and hybrids and the lowering of heat unit requirements. That shift, says de Graaf, has helped drive the profitability of his own operation.

Yet there is one aspect of Maritime corn and soybean production that lags behind Ontario, Quebec and the West. It’s crop insurance, which de Graaf does not purchase. Simply put, Nova Scotia’s government is far behind on its yield averages — two tonnes per acre for corn, or about 75 bu./ac.

For de Graaf, whose average corn yield is 3.73 tonnes per acre (147 bu./ac.), roughly half his crop would have to fail before he’d be able to collect on a claim.

“So it makes no sense at all for me to do anything as far as insurance goes,” de Graaf says. “But that’s the reality. When people used to grow corn, there wasn’t a lot of grain corn anyway, and when they did grow it, that two tonnes per acre was their expected yield 15 years ago. It’s a whole different world now.”

Early adapter and innovator Although de Graaf doesn’t see himself as an innovator, he has cer tainly embraced many of the modern tools employed in other parts of the country.

He relies on Barry and Paul Raymer of Practical Precision in Tavistock, Ont., for agronomic advice and has adopted both GPS and GreenSeeker technologies.

“When I started farming crops, my 6

“ I don’t consider myself innovative, but everyone tells me I am.”

— Nick de Graaf

father was a chicken farmer and he just rented out the land for 30 years, and I really had no one in the family to draw from as far as cropping experience went,” says de Graaf, adding that his first tractor was equipped with a computer. “But that was recording all the time that was spent, and basically, it was to get costing, not use the GPS for driving. And I’ve continued that right until today — at any given time, I can tell you exactly how much I’ve spent on my crop this year, and I can go back to last year and figure out how much I’ve made.”

The adoption of the GreenSeeker technology has been a little more problematic. He doesn’t spray-apply his fertilizer, he broadcasts it dry, and he has the sensors on his GreenSeeker set at the front of his tractor, requiring a programbased offset to compensate for the 40-foot distance between the sensor and the point at which his fertilizer is spread.

But the variability in his fields has been too great, so he’s suspended his use of the GreenSeeker unit until he can get the offset issue corrected.

De Graaf was also the first grower in his region to purchase a Geringhoff head for chopping cornstalks at harvest (now there are three or four with these heads).

And he was one of the first with a Case IH Patriot self-propelled sprayer in the

region, and he was the first in Nova Scotia to have Aim Command on the unit.

What’s also innovative about de Graaf is his willingness to take on and remediate fields that others might consider too big a drain on their time or management.

“When I first got into cropping, even before the boom from the corn price, there were a lot of fields that I would see driving around at night that looked overgrown,” says de Graaf. He would return home, figure out who owned it and then go ask the owner if he could rent it. “Over the years, I’ve probably had between five and 10 different fields — and some of them I’m still using today — where the alders were starting to grow.”

With so many potato acres in the Maritimes, de Graaf notes there were a lot of growers under contract with Hostess, with some working good parcels of land and others on not-so-good soils. But when the snack food manufacturer stopped buying locally in the region, a lot of the lesser-quality land was left behind, and that’s where he came in, renting it, remediating it and using it to grow corn and, later, adding soybeans too.

“I don’t consider myself innovative, I guess, but everyone tells me I am,” says de Graaf. “I seem to be the first to do things, and then the next year, everyone else is doing what I’m doing.” CG Corn Guide, September 2014

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Cornguide

Saying yes to no till Blake Vince (r) and Bob McIntosh are convinced no-till corn is the right way to go, even if there can be growing pain

By Ralph Pearce, CG Production Editor On the one hand, there’s hope. On the other hand, there’s reality, so although Canada’s corn growers commonly say that their goal is no till, they often get stumped by the transition. Sometimes it’s because of cornstalks.

Sometimes it’s because of equipment issues, and sometimes it’s simply because growers are hoping someone will develop a one-size-fits-all, silver-bullet type of solution to all their soil challenges.

Whatever the reason, a number of growers are standing by their no-till management strategies, insisting that with a little time, effort, research and patience, profitability and productivity can be enhanced by no till, not sacrificed.

That number includes Bob McIntosh and Blake Vince, who believe it’s never been a better time to convert to notill. Try it, they say. You’ll grow to be a believer too.

Blake Vince: “It’s the end of the year that counts”

K

eeping the water clean and his soils healthy are primary goals of Blake Vince, who farms with his father, Elwin and his uncle, Tom Vince on 1,300 acres north of Merlin, Ont. The other goal, of course, is farming profitably.

The farm is on Brookston clay, but despite his tough soils, Vince states with pride that in his lifetime, he has never used a mouldboard plow — thanks in large part to the early work of his dad and uncle.

Vince is currently working on the second and final year of his Nuffield Scholarship, and the subject of his paper is “Conserving farmland with cover crops and the importance of biodiversity.”

8

Vince’s father and uncles were early adopters, beginning work on no till in the early 1980s. At the time, John Deere’s 750 drill had yet to hit the market, so the Vince brothers started with a Tye grain drill and Great Plains coulter cart, combined with a threecoulter Ray Rawson system, all configured on a John Deere corn planter.

“Those were the days when interest rates were through the roof and commodity prices were through the floor,” says Vince. “And that was their catalyst to change, and that’s why other types of farming take place — there’s a catalyst to change. Today, for those who’ve gone away from no till, the catalyst to change Corn Guide, September 2014

has been higher commodity prices, so there’s been an influx of capital and guys have gone out and bought a tractor. And the best thing to make the tractor work is to put some kind of tillage tool behind it to see how it performs.”

That term “catalyst to change” plays a prominent role in Vince’s explanation of why no till in corn is such a tough sell. He theorizes that change is the biggest obstacle on the farm, just as nobody likes change in any facet of society. When corn prices are high, the tendency for many farmers is to plow more, with a sense of trying to capitalize on physical bushels Corn Guide, September 2014

and a strong market. The ultimate goal is tied to the belief that it’s possible to add bushels through tillage.

“And you very well may get additional bushels in the short term, because what you’ve done is you’ve burned off that accumulated soil carbon that you’ve built up in the past few years of no till,” says Vince. “The analogy is that you’ve burnt down the house to roast a hotdog, and that’s from Ray Archuleta, who works for the NRCS (National Research Conservation Service, for the USDA).”

In Vince's view, the best catalyst today is the price of fuel. In 2005, he was doing

cash flow analysis on winter wheat straw management, and at the time it was costing him more than $60 an acre to manage his winter wheat straw following harvest.

That was at a time when diesel was about 60 cents a litre. Now, with the price of diesel nearly twice that 2005 level, it’s pushed that per-acre management to a point where it’s no longer economically viable.

Vince adds that too often, farmers also get caught up in the physical appearance of their crops. They might scout soybeans in July and believe the way they look then will Continued on page 10

9

Continued from page 9

equate to how they’ll yield two months later. But what really matters is how they yield in late September or early October.

“So every year in July, people look at notill soybeans in cornstalks, specifically, and they complain about how they look, at times lacklustre compared to those that have been conventionally tilled,” says Vince.

“But it’s the end of the year that counts.”

Soil is the medium That end-of-season performance is tied more to the health of the soils, which is why Vince is involved in research into a multispecies cover crop mix. Not only is he a dedicated no-till grower with a three-crop rotation, he’s also a huge advocate of healthy soils, including the reminder that in a teaspoon of such soil, there are more organisms than there are people on the planet.

There’s no scientific reason for tilling our soils the way we do, Vince says. He believes it’s simply time to stop.

Like other growers, Vince has held to the practice of frost-seeding red clover into his winter wheat for many years. And in the days when there was more mixed farming with livestock operations, people grew more cover crops to feed their animals. But as farming has embraced morespecialized management (crops versus livestock, not both), the trend has been towards scaling back on covers, and even in those cases where farmers are including a cover crop, it’s often a single-species variety, such as red clover.

“What I’m striving for is utilizing a multiple-species approach, because if we look at the outset at how these soils originated, they weren’t covered by a single species of tree or grass,” says Vince. “If you’re walking across a prairie, you have an abundant array of plants, and that’s what we’re trying to emulate.”

Since the Second World War, he adds, the tendency for agriculture has been to rely on chemical-based synthetic fertilizers instead of cover crops. The belief was that in order to push yields, chemical fertilizers were the answer. But Vince contends that when agriculture had more of the diversity of mixed farming — no 100-percent-grain production or 100-per-cent-livestock production — the soil benefited greatly. Complicating matters was the advent of herbicides and fungicides to the mix, reducing the number of beneficial organisms in the soil.

Vince also echoes many of the sentiments of Bob McIntosh when he reminds people that compared to years ago, when no till was just getting started, the tools of today make things that much easier. Heavy-duty coulters and systems with down-pressure sensors make it simpler to shift away from more-aggressive tillage tools.

“It confuses me to no end why guys continue to think that they need to till,” says Vince, who gets most of his phone calls regarding his management practices from growers more than 100 miles away.

“There is no scientific evidence that supports tillage, but to think that tillage is going to go away tomorrow, we’re just fooling ourselves.”

Healthy soils = healthy watercourses Vince is also working on the Nuffield Scholarship because of his ongoing concern with pollution in the Great Lakes (another shared sentiment with McIntosh). In spite of a newspaper report in August 2013 citing Windsor and London as the two worst

10

urban polluters in southern Ontario, Vince maintains that agriculture needs to get its nutrient house in order — fast. He believes the agri-food industry is having a major impact on the health of the Great Lakes, and Lake Erie in particular. He also sees his farming colleagues in Ohio, Indiana and Michigan, who appear to be more proactive in managing soils with an eye on cleaner water.

Regardless of the pollution from cities, the fact is he sees water flowing into Lake St. Clair from the Thames River that is the colour of chocolate milk, and much of the problem there is soil erosion following major rain events. The recent water ban in Toledo, Ohio, in late July was another indication of problems with the overall management system. In that case, media reports mentioned sewage and farm runoff as the main culprits.

“I don’t see the same urgency happening here in Ontario,” says Vince. “And that’s what motivated me to do the scholarship, to see if we can figure out a better way than what we’re doing presently.”

Soil linked to civilization Ultimately, Vince believes that North American agriculture and the health of our civilization are closely linked.

According to popular belief, North America is the standard for excellence in agriculture, as well as life in general. It’s seemingly where people from around the world want to be.

“But we take that with such nonchalance, especially how we manage our soil, and we just disregard it,” says Vince, adding that he read David Montgomery’s book Dirt: The Erosion of Civilizations, which links soil management to the viability of a society. “We look at soil as the medium which we use to support plants,” says Vince. “But the soil needs to be viewed as much more than the support mechanism; it needs to be viewed as the substance that gives the crop life.”

When farmers ignore that, he believes, they end up looking for what he refers to as “the next magical elixir” for their crop, or they look for a piece of equipment that will somehow solve all their compaction woes.

“That’s where we are today in North America — we’re on a real slippery slope,” says Vince, whose Twitter handle is #rootsnotiron. “Don’t think for a second that this all can’t come to an end.”

The future, says Vince, is all in the soil.

Continued on page 12

Corn Guide, September 2014

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Bob McIntosh: “It takes five years”

I

n the early 2000s, Bob McIntosh made a presentation at the annual meeting of the Innovative Farmers Association of Ontario. The take-home message that day was that if you’re a grower looking to enhance your soils — and ultimately your bottom line — and if you’re hoping that no till will do that for you in one or two years, be prepared for disappointment.

It takes a minimum of five years of strict no-till management before you’ll start to see significant improvement of any kind, McIntosh told his audience, before adding, 10 years is even better.

Nearly a dozen years later, McIntosh, who farms about 1,200 acres outside of St. Marys, Ont., is holding to the same line. But he’s also still insisting that no till in corn is doable, and it is viable. In fact, he just doesn’t believe there’s much to justify plowing and discing, especially across much of southern Ontario.

“There are a few things that you can and can’t do with no till,” McIntosh agrees. “Rotation’s pretty important. I don’t think it’s going to work very well with corn on corn — I’m pretty much 100 per cent corn on soybeans.”

McIntosh has had arguments in the past about how no till is defined, and Eric Kaiser, another staunch defender of no-till production, draws different comments about the “aggressive nature” of his coulter-and-planter setup.

McIntosh concedes that he’ll do some discing following wheat in late summer — to deal with the strip of chaff left behind the combine. But his definition of no till is that he’s not doing any kind of tillage the year he plants a crop.

“So we’re doing some things in the fall before, and getting ready, so that when I go to the field in the spring, I’ve probably sprayed the field, but other than that, nothing’s touched that field that year,” says McIntosh, adding that he hasn’t done any plowing on his land for years.

Big changes from then to now Since he talked to that IFAO meeting, no-till trends and technologies have changed. For instance, new corn hybrids and elite germplasm are pushing yields higher, but their tough stalks are also challenging no-tillers as never before.

Yet McIntosh notes that as plant breeding has improved productivity, 12

enhanced technologies are also helping those growers who want to avoid disturbing the soil.

“Our planter has a totally different setup than it was when we started,” McIntosh says. “We had the multiple coulters — I would think somewhat similar to what Eric (Kaiser) has, and we needed that initially because some of this ground was so hard from all the tillage and things that had been done to it, that that’s the only way we could get a reasonable seedbed at all. Now we have no coulters on the planter, just trash whippers, and not even a coulter in front of the row unit, and we don’t seem to have any trouble penetrating that and getting the seed at the depth we want. So the soil’s changed a lot.”

Then, he repeats, “But we’ve been at it for more than 10 years now.”

“We’re trying to get all of our wheat ground into some kind of cover crop, and we’re looking at options on how we can get cover crops to follow our corn and soybeans.”

As for the question of whether the hybrids are better today than in years past, McIntosh isn’t convinced that they’ve improved so much, it’s just that there’s likely a larger pool of good-quality hybrids to choose from.

The breeders and seed companies have done a better job in the past 15 years of ensuring there are fewer “duds,” he belie ves. But that also means McIntosh is planting hybrids based more on the trial results he can find and the recommendations of seed company representatives, than relying on planting a test plot on his own farm.

Another change for McIntosh is that he’s working more often with cover crops.

“We’re trying to get all of our wheat ground into some kind of a cover crop, and we’re looking at options on how we can get cover crops to follow our corn and soybeans,” says McIntosh. “But that’s a little more difficult because of the late-

fall harvest and when you can get it on.

We have little trials here with some Italian ryegrass into standing corn, to see how that works, but we’re just in the initial stages.”

McIntosh is sold on what he calls the “huge benefits” of cover crops, and wishes he’d hopped on the bandwagon years ago. By the time he figures out how to make it work, he quips, he’ll be ready to step down from farming.

By land and by water The no-till management system lends itself to other on-farm practices that can have significant benefits. There’s the impact of cover crops but McIntosh refers to another component that is gaining more and more attention: the effects of erosion.

In the summer of 2014, the ClintonSeaforth area had more issues with excessive rains, including ponded sections in fields.

So although it can take years for freeze-thaw cycles coupled with the use of cover crops to loosen plow-pans, it’s something McIntosh believes in firmly, and it’s one of the reasons he’s added berms and Hickenbottom drains to his operation.

“It’s definitely a long-term perspective, and one thing that I see is the erosion, and we’re on relatively flat ground here, but we can have pretty major erosion, too,” McIntosh says.

“That’s what convinced me years ago that we had to do something like this, because you get one major rain event, you can have all kinds of damage that will take years to correct. Every time it rains, those areas will have water in them again, because they tend to seal off. It’ll take a winter with some frost to open that up again, even if there’s tile right under it.”

On land that he rents, he’s seen where the tiles are 60 feet apart, yet it rained so much that between the tile lines the water ponded in a couple of spots and was there all year with each rain event.

With soil erosion, he adds, it only takes one event and even if it comes once every five or six years, it’s still devastating if you’re unprepared.

The addition of the berms and the Hickenbottoms have made an observable difference; when there is run-off, the water is cleaner coming off a no-till field. CG Corn Guide, September 2014

Cornguide

Watch the market’s timing B We got here with our eyes wide open. That’s how we’ll survive this year’s market downturn too

By Philip Shaw

Corn Guide, September 2014

y mid-August, new corn cash prices in Eastern Canada had hit some of their lowest levels in several years. The lesson is clear. No one should ever underestimate the production capacity of modern-day agriculture.

Although it was only a few years ago that the world was doubting whether farmers could ever produce enough corn to satisfy the burgeoning demand from biofuels and a hungry public, by adding some new technology into the mix and the sweat of farmers worldwide, we got our answer.

Huge supplies of corn now weigh on our market, and looking ahead, farmers will have to manoeuvre through this new market landscape.

The July 2014 USDA report set yield expectations at 13.935 billion bushels of corn on 91.64 million acres. This might seem like a large crop of corn, but it is also important to remember that it is coming from the smallest corn acreage since 2010.

The USDA was using a yield estimate of 165.3 bushels per acre, but this may change as we go through the fall season and the effects of late-summer weather hit the combine.

There is also the corn on hand to con-

sider as another part of the supply-anddemand equation. The old-crop ending stocks as of July 11 were pegged at 1.246 billion bushels with a stocks-to-use ratio of 9.2 per cent.

The new-crop situation in 2014 is much more telling with the expected ending stocks figure projected at 1.801 billion bushels. In other words, depending on weather as the 2014 crop goes into the bin, new-crop corn ending stocks are approaching the two-billion-bushel mark — and end-users can see that.

Traders have reacted accordingly, which explains futures prices dropping to the $3.60/bushel range by early August.

It is not like we have never been here before.

Agricultural commodities are constantly dogged by the economics of inelastic demand, which often leads to overproduction. Although the corn stocks figures are onerous as we look ahead, corn demand has been near record levels, with the USDA forecasting corn demand at 13.335 billion bushels for the 2014-15 new-crop season.

The two largest demand components of this are feed at 5.2 billion bushels and Continued on page 16

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ethanol at 5.05 billion bushels. That means demand has essentially gained back everything it lost from the $8 corn period of two years ago.

This year’s price decline has been mainly based on the huge production potential in U.S. fields in 2014, with the December 2014 corn contract in the lower 13 per cent of the market’s five-year distribution range.

For farmers in Eastern Canada who have corn in the field, all of this is a huge concern going forward. What will the corn price do next? That question is on everybody’s mind and cannot be really answered except with the proverbial “nobody knows” answer.

That applies to pessimists too. They don’t have a lock on being right. Just because the corn market is down doesn’t mean it will stay that way.

Don’t be surprised by limit move price reactions to the USDA January report

Grain prices are fluid and react to many factors and over time they go up and down. If we want insight into which way they’re likely to go, we need to ask questions like, what market factors are ahead that may affect the timing of a future major price movement? What other places in the world impact the world price for corn? What is the timing of future USDA reports and how may they impact market direction? How will the Ontario and Quebec cash markets react in 2015, and what will be the timing within that market structure?

These are only some of the questions that producers will be asking themselves going into 2015.

Timing of USDA reports is always critical.

There is much debate on how much these reports affect prices, as some traders would argue that futures spreads among months give better clues on price direction. However, USDA reports do usually serve as flashpoints in market timing.

Large price moves often come off USDA report dates and it is critical to keep that in mind as you plan your corn marketing.

Each month, USDA releases reports on myriad market factors. The October 2014 USDA report will begin to show actual yields of corn in U.S. fields. The January 2015 USDA report will show final yields reported in USDA fields.

The January USDA report often sees limit move price action. Timing marketing of corn based on these report dates can often provide rewards.

The market factors that will influence price going into the fall of 2014 have much to do with the weather for the rest of the summer and fall. The cool summer of 2014 will manifest itself in some 16

unknown way with regard to yield. USDA reports will give clues to that. Of course, there is always the prospect of frost in the fall that can affect corn yield in a negative way. The market always trades this until the frost scare passes. As we move into fall these factors will be weighing on the market.

Critical to corn marketing in Eastern Canada is understanding the nature of our corn market structure. In Ontario over the last two years, we have produced more corn than we could use, so exports out of the province have been the norm.

However, historically this has not been the case and we export out of the province during fall harvest and import back in to Ontario when our cash price approaches U.S. replacement values.

The production litmus test for this is two million Ontario corn acres with a yield of approximately 150 to 160 bushels per acre. Any production over two million acres with good yields leads to exporting corn most of the year (lower cash prices). Any production year of less than two million acres with lower yields will garner spring import pricing (higher cash prices).

Price transparency is not as good in Quebec, but with their proximity to salt water ports, export pricing can take place depending on crop size and the local demand conditions.

October and November will bring corn planting once again to Brazil and Argentina. This timing will also be critical for the corn market as acres and development will be important to move price. Brazil also plants a second crop of corn in February, which adds to the supply equation. The market will be watching this South American production and producers need to key on this as well.

With lower prices there will be less incentive to plant corn both in South America and Ukraine.

Eastern Canadian cash corn prices are always affected by the value of the Canadian dollar, but not as much as soybeans and wheat. By midAugust the Canadian dollar was fairly flat in the 91-cent U.S. range, providing a stimulus for better cash basis versus the futures prices. Timing for this is always an additional judgment to make in our marketing decisions.

There is a strong carry in the series of futures spreads between December 2014 and July 2014 corn prices. This means that the market is incredibly comfortable with the corn supply going forward. There is no premium being offered for the new corn now. Of course weather can change, the one great constant in our corn markets.

So we move ahead with hope, but hope is not a marketing plan. A black swan might fly by (totally unexpected event to affect markets), but it’s getting late in the game with the fall harvest starting up in earnest later in September.

We got here with our eyes wide open. The challenge for eastern Canadian corn producers is to stay the course. There will be corn-marketing opportunities ahead. Getting a timeline on market variables will surely help in that process. CG Corn Guide, September 2014

Cornguide

Exploding in the West The seed industry is betting the West’s corn crop will soon soar to eight million to 10 million acres

By Andrea Hilderman

I

f corn used to seem like a fairy tale crop in Western Canada, there are all sorts of Prince Charmings lining up these days in hopes of bringing her to life.

In the past decade, the West’s grain corn crop has grown fourfold, reaching a high of 405,000 in 2013. And if the pundits are right, that’s just a start.

New forecasts are for a crop 10 to 20 times that size.

“The desire of farmers to grow corn in the West is real,” says Greg Stokke, DuPont Pioneer’s business director for Western Canada and a farmer himself at Watrous, Saskatchewan. “Maturity is the linchpin that will drive adoption of corn. If growers can grow corn with less risk, they will.”

It’s true that 2014 saw a decline of 75,000 acres, but that was mainly because a cold, wet spring made timely seeding impossible in many areas.

For the record, though, Manitoba still leads the way with over 85 per cent of the regional crop, after taking a big jump in 2012 and 2013 when farmers responded to corn prices, indicating their willingness to grow corn if the returns are there.

Interest is growing in Saskatchewan, however, and also in Alberta, where corn has been grown for over a decade, although acres still hover near the 30,000 mark.

Continued on page 18

Photo : allan dawson

“Buying a corn header, even a used one, is expensive,” Mazinki cautions. ”And with corn, you have to have access to a grain dryer.”

Corn Guide, September 2014

17

Continued from page 17

Ray Mazinki farms with his brothers at Morris, Man., in the heart of the Red River Valley and the original corn-growing area of the province.

“We’ve dabbled in corn for maybe 15 years,” says Mazinki. “The last few years more so. We have a pretty diversified rotation and we have found that not only does corn have good returns, it helps us draw out our seeding and harvesting operations, which is important as the farm grows.”

Mazinki has also found that corn takes hog manure really well, not lodging as other cereals might.

“Growing corn and soybeans is like night and day when it comes to equipment,” says Maazinki.

“We also grow sunflowers and soybeans on our farm, so our planter gets plenty of use. But buying a corn header, even a used one, is expensive. And with corn you have to have access to a grain dryer — we have our own, but lots of guys might not.”

Unlike soybeans, corn has to be seeded with a planter to get the correct row spacings and, depending on the equipment, to ensure uniform depth control.

Corn has found popularity in the Red River Valley because the area has the heat to bring corn to maturity, and also because many farmers have their own grain dryers. It is not unusual for harvest to be drawn out and many crops besides corn may need drying.

”We want every grower to experience success the very first time they try corn on their farm,“ says Monsanto‘s Dan Wright “An additional advantage we see with corn is it keeps its quality better than wheat in wet years,” says Mazinki. “While corn may harbour fusarium, it rarely shows up on the kernels and corn is a cereal which is important in the rotation on our farm.”

Stokke believes more farmers are eyeing those advantages, and he believes that the extra research push going into corn for Prairie maturities will mean more growers will have hybrids that they can expect to mature.

Once corn is seeded, it is a relatively easy crop to grow, says Stokke. “Corn is a crop you can plant, and then really forget about save for a couple of weed applications and some insect scouting.”

“By harvest, the yields are huge and the returns can be very lucrative.”

DuPont Pioneer and Monsanto certainly see a future for corn in the West, and both companies are making big investments to ensure their vision comes to fruition.

18

DuPont Pioneer recently announced its intention to build a 22,500-square-foot multimilliondollar corn-breeding and -testing facility in Lethbridge, Alta. “This facility is a concrete testament to the opportunity we see for corn in Western Canada,” says Stokke. “Our commitment is long term and speaks to our belief that we can develop the sorts of hybrids that will drive corn acres here in the West.”

Monsanto Canada launched its Canada Corn Expansion Project in 2013. The project will see $100 million invested over the next decade to develop corn hybrids with earlier relative maturities that will be suitable for Western Canada.

Monsanto sees the potential for eight million to 10 million acres of corn planted on the Prairies by 2025.

“We made our first big breeding and testing push into Western Canada in 2013,” says Dan Wright, trait launch lead for Monsanto Canada. “The team was very pleased with the maturities of the hybrids and with what they learned agronomically.”

Wright says Monsanto will test hybrids extensively in local geographies all across the Prairies to be sure which hybrids will work best in which areas. “To that end, we have thousands of small and larger-scale plots at 65 sites,” says Wright. “It’s our opinion that it’s Monsanto’s job to test the hybrids for local adaptability, not the grower’s.”

It’s not just a brand position, it’s also a business strategy.

“We want every grower to experience success the very first time they try corn on their farm,” Wright says.

The driver of corn in Western Canada will be a combination of hybrids with 70-day relative maturity, give or take, and yields of 100 to 110 bushels per acre. Once such hybrids hit the market with testing for local adaptation and agronomic suitability — assuming grain markets are attractive — the Monsanto view is farmers will grow corn.

With the right genetics, corn may also have a useful fit in the rotations in Western Canada.

Corn can provide additional diversity in the rotation allowing for more integrated weed and pest management strategies.

Maturity isn’t the only barrier to successfully growing corn though. There are some special equipment requirements needed for corn. Unlike soybeans, farmers can’t get their feet wet with corn using their existing machinery.

“To grow corn, farmers need planters, corn headers for the combine and probably some access to drying capacity,” says Stokke. “That said, some farmers who are growing soybeans are starting to up their game with that crop by purchasing planters. We will see corn follow soybeans to a large extent… they are a good fit together in the rotation.” CG Corn Guide, September 2014

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Cornguide

A market for your cobs Research is showing we can start harvesting some of our stover for cellulosic ethanol… if we do it right

By Ralph Pearce, CG Production Editor

T

he allure of harvesting corncobs and stover for sale is getting harder to resist, and with the downturn in the grain market, the possibility may seem more tantalizing than ever. Even so, while the speculation grows about where and when a cellulosic plant will get built, the question is still hanging in the air: Can you have your cake and eat it too? Or, to put it in a more agricultural context, can you sell your corn residue and still keep your soil healthy enough to grow a great grain crop?

“The bottom line on this comes back to how well the soils have been managed.”

— Adam Hayes, OMAFRA 20

That question is getting more complicated, with two separate schools of thought.

One school says that the research has been done.

Stover harvesting is viable and sustainable, and it’s time for the innovators and entrepreneurs to jump in, building the long-term collection and storage infrastructure that the cellulosic ethanol industry would need in order to begin production of the new biofuel. For many in the industry, this idea is a matter of “when” it can be done, not “if.”

But the other school says the jury is still out.

Even with well-researched standards for residue removal, this school says, there’s a concern that growers might get carried away — almost literally — and that our grain yields and the health of our farms will suffer as a result.

In truth, firmer guidelines for the removal of corn stover (and other residues) have been the focus of considerable research in recent years. In November 2010, reports on two separate studies were released, one by a group of University of Guelph researchers and another by a team from Western University at London, Ont. Both teams looked into using corn residues for energy or heat generation, although both also made several observations that applied to biofuels. A third study, released in August 2012, was prepared for the Ontario Federation of Agriculture based on the Western University research, and it addressed biomass crop residues and their availability for bioprocessing, specifically in Ontario.

The University of Guelph study with Drs. Hilda Kludze and Bill Deen as lead authors looked partly at short-term economics, beginning with the idea that the net price for the crop residue would need to be higher than the value of nutrients that would be removed, hard as that might be to calculate.

Then the Guelph study also tackled the question of sustainability. Soil organic matter, the study found, is critical for soil health, contributing to the soil’s resistance to soil erosion and crusting, its ability to form aggregates, and its cation exchange capacity (CEC).

The conclusion comes out in favour of cob harvesting, which the study called an “environmentally Corn Guide, September 2014

sustainable and economic alternative feedstock” for the bioenergy industry.

The Guelph study said there are three key reasons for promoting their use in Ontario: 1. cobs are abundant, and can be gathered in all counties in which corn is grown; 2. the level of nutrients in cobs is insignificant, and 3. cobs make up only 16 per cent of stover. A fourth reason cited the low sulphur and ash content in corncobs, making it an ideal feedstock for generating heat and electricity. Its use in biofuel processing was not mentioned.

Soil organic matter In the 2010 Western University study and the subsequent OFA-Western report of 2012, both of which saw Dr. Aung Oo as a primary contributor, the importance of soil organic matter was also highlighted. At the same time, both projects attempted to quantify the removal of small amounts of residues, recognizing the added value for growers, but also the minimal impact on soil health and its properties. The initial UWO study mentioned soil erosion due to water run-off as a factor to consider when removing residues.

The OFA-Western University report made extensive recommendations for removing crop residues, including specific observations about corn residues and the creation of bioprocessing industries using crop residues in Ontario.

Corn Guide, September 2014

In its general summary, the study found that the total quantity of sustainably harvestable crop residues in Ontario to be 3.12 million tonnes per year.

That constitutes roughly 20 per cent of the province’s total crop residues produced in a year. The recommendations also said that the quantity of sustainably harvestable residues would be farm specific, and it would depend on a blend of factors including crop rotation, application of organic materials such as manure, cover crop management, topography and tillage practices.

It should be noted that a similar study conducted in the U.S. by biofuels manufacturer Poet came up with a similar 20 per cent base removal rate for corn stover. Its 2013 report was a response to a project by Purdue University which warned against stover removal, citing environmental concerns such as erosion and greenhouse gas emissions. The Poet study stated its findings were in the 20 to 25 per cent removal rates, not the 38 to 52 per cent levels in the Purdue study.

According to research in 2010, soybean residues are not an option for removal.

Stage is set In summary, the research is showing that as long as it’s done with an eye to sustainability, cob harvesting makes sense.

“We’ve been working on cellulosic ethanol since 2007,” says Mark Schwartz, business development manContinued on page 22

21

Corncobs have been identified as the better source of carbon and the smallest component of stover, meaning fewer nutrients to replace.

22

Continued from page 21

ager for GreenField Specialty Alcohols, based in Brampton, Ont. “We actually worked with corn stover a couple of years later, and I know we’ve done some corn stover studies. But we started with wood, and then we started adding things from there. After that, we got into corncobs, which have the highest level of carbon.”

Schwartz has worked with an Illinois farmer who’s been gathering cobs and stover for nearly a decade. His combine has been modified to haul a cart behind the combine almost at ground level. The combine travels at a lower speed, and the cart collects cobs and stover. In fact, this farmer stopped harvesting one day when the auger for the biomass broke. He reasoned that it wasn’t worth the effort of combining the corn on its own, and then going back and gathering the stover in a separate harvest.

When the price of corn took its substantial jump in 2009, farmers, agronomists, plant breeders and retailers all looked for ways to drive corn production up to and beyond the 300-bu.-ac. level. Continuous corn practices, higher plant populations and improved stalk strength played significant roles in that drive. But it also meant higher residue levels, and in many cases, a return to plowing and more aggressive forms of tillage as a means of managing the mat of corn stover that was left behind.

“People don’t realize that the biomass adds carbon

to the field,” says Schwartz. “When you’re spraying nitrogen to get that crop to grow, you have too much carbon and you have to add more nitrogen. So a lot of these growers are getting huge crops, they’re getting huge amounts of biomass and carbon, and a lot of them see the benefit of pulling off some of that carbon.

Most of the growers who do the biomass (collection) are no-till guys. They want to get rid of it.”

It’s Schwartz’s opinion that if there’s more research to be done, the focus could be on how much biomass should be taken off. He points to individuals like the Illinois farmer he has worked with in the past as pioneers, based on how they’re making money collecting cob biomass for mushroom growers, among others.

In the meantime, GreenField is in the process of getting its cellulosic ethanol plant (or plants) operational. It will also take about two years to gather sufficient amounts biomass in advance of the start of processing.

“One of the biggest challenges is going to be storage and distribution,” says Schwartz, adding that in his opinion, there’s enough research to show residue collection can be done, sustainably and effectively.

“You can’t move the biomass that far away and you have to store it carefully so it doesn’t rot. But once we build the plants, we know there’ll be a lot of material.”

Continued on page 24

Corn Guide, September 2014

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An efficient method of collecting stover from the back of the combine needs to be found to ease the process of generating sufficient feedstocks for cellulosic ethanol.

24

Continued from page 22

Pushing the limit There may be a lot of material, and a lot of interest among farmers, but the concern from a provincial extension perspective is still the extent to which farmers will push the limits on residue removal.

“There certainly is a concern that if we do come out with a way of calculating a number of what to remove, whether people will stick with that or push it to 50 per cent or 100 per cent more,” says Adam Hayes, soil management specialist for field crops with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA).

Here’s the point where it could get out of balance, Hayes says. He points to the fact that the Guelph research shows that the more corn you have in a rotation, the more opportunity you have to remove residue. “But the challenge with that is what is happening at the long-term rotation plots at Ridgetown and Elora, where the poorer rotations at those sites from a yield and soil health perspective are the ones that have more years of corn in them. If it’s continuous corn or the corn-soybean rotation, they are the poorer yields.”

One strategy that might help is cover crops. Hayes has been working for several years on multi-species cover crops in a number of cropping scenarios, and believes that the practice of removing residue would be helped by growers adding a cover crop. Dr.

Shannon Osborne of the USDA’s Agricultural Research Service (USDA-ARS), has been studying the removal of residues in concert with cover crops where possible to offset the loss of organic matter.

She spoke at a local Ontario Soil and Crop Improvement Association (OSCIA) chapter’s meeting, last December.

“Depending on the rate of removal and the cover crop program,” Hayes says, “they were able to use cover crops to allow the removal but to offset any negative impact on the soil.”

Hayes has seen a recent increase in interest in cover crops among growers, not just following cereals but for inter-seeding of cover crops into standing corn. He’s been working on inter-seeding cover crops at the sixleaf stage, and he’s been receiving calls from growers who are trying to seed into maturing soybean stands.

“To me, the bottom line on this (residue removal) comes back to how well the soils have been managed,” says Hayes. “There are soils where people have been doing a good job of maintaining their soil organic matter levels or even pushing them up. But there are a lot of soils where organic matter levels are dropping or continue to drop, so those are soils of concern. The soils that are declining or have low levels of organic matter are the soils where we’re seeing the loss of aggregate stability, more potential for soil erosion, poor soil structure and crusting — we don’t want to be taking organic matter away from those soils.” CG Corn Guide, September 2014

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Cornguide

Conservation

versus vertical tillage Which is best, year in and year out?

By Ralph Pearce, CG Production Editor

26

L

ate in 2013, in the middle of a conversation on a completely different topic, the subject of conservation tillage came up, and Pat Lynch paused and then said, “If you ever want to talk about conservation tillage, just let me know.”

A lot of farmers believe conservation tillage is just another way of saying vertical tillage, Lynch says. But he believes the two are actually different.

Lynch’s concern may be justified. It turns out the two are quite different, with different uses, as well as differing considerations to maximize their respective strengths and weaknesses.

To be fair, of course, it isn’t only Lynch who believes that conservation tillage differs from vertical till. Growers Doug Park and Bruce Smith hold the same impressions about the practices, albeit with a few key differences. Park is located just outside of Sarnia while Smith farms land near Caledonia, Ont. Both work on heavier soils, and both agree with Lynch’s distinction between the two systems.

“Conservation tillage would be something that we’d always do in the fall, like with a chisel plow or a disc ripper,” says Park. “Vertical till is a tool that we normally use in the spring, and it’s similar to a set of discs, but it doesn’t move as much dirt, just loosens the top couple of inches.”

Interestingly, it’s been the change in corn-growing practices that led Park to alter his no-till practice. In the past 10 to 12 years he’s found, like many other farmers, that plant breeding in corn has strengthened the stalks. Added to that are the higher yield potential and increasing plant densities.

“I don’t think we need to go back to doing near the tillage we used to do, but we need to be somewhere in between,” says Park, noting that today’s cornstalks are very different from those of 10 or more years ago. “These stalks stay green and healthy, and we’re putting fungicides on them in the summer so they’re still green come harvest-time. So they’re just not breaking down like they used to.”

Last year, Park actually switched his definitions. In the best field he has, he used his vertical tillage tool last fall. In fact, because it was a good crop and there was plenty of residue, he vertical tilled the field twice — once on an angle, and then lengthwise, and then planted soybeans right into that field come the spring. Into midsummer in 2014, those were his bestlooking soybeans compared to the no-till crop he planted, which he says was very yellow in mid-July.

A different approach Park also makes no apology for employing conservation or vertical tillage; with the number of acres he manages, the window for planting is simply too small. “There are only about three good days of no till on our ground,” says Park. “You can’t do it when it’s too wet, and there are only about three good days before it’s too dry. Certainly on loamy soils, your options are so much better.

We could make no till work if we were on 400 acres and got everything into that three-day window.”

For Bruce Smith, the use of conservation tillage on his land is routine. He farms on some heavier clay soils but also works on what he refers to as “potato ground.” To Smith, conservation tillage comes down to doing a minimal amount of tillage and leaving up to 30 to 70 per cent residue cover depending on how it’s broken up and what that particular field is going to be used to grow.

Smith is reluctant to say which one should be used in fall or spring, since he employs both systems on his land, and adjusts their use according to specific conditions.

Not size but soil types “If you’re going to go in with corn, you want to have that area clean for the corn planter,” says Smith, noting that some no-till equipment will do the job under ideal conditions. “One of the biggest things we’re finding is working ground in the spring, and especially when you get a later spring and drier conditions, you don’t want to lose Corn Guide, September 2014

“I don’t think we need to go back to doing the tillage we used to do, but we need to be somewhere in between.”

— Doug Park, Sarnia-area farmer your moisture. And that’s where you get into the higher residues. With the light tillage, and then not working deep, you can drop the seed into moisture.”

Vertical till falls along the same line, adds Smith, mainly because it can do a great job in the proper soil conditions, shattering crop residues, particularly cornstalks.

Smith works with both a Case IH 870 as his conservation tillage unit for fall practices and a Case IH 330 Turbo Till unit for vertical tillage, typically used in the spring.

The 870’s large disc blades and parabolic shanks help lift and disturb the soil and incorporate corn residues in the fall.

“The disc basically does the job of incorporating the material,” says Smith.

“And then one of the key components is having that field very level. You want it rough, but you want it level.”

The vertical tillage unit, he points out, has larger tires and walking tandems and wing-gauge wheels, so he’s not digging deep into the denser soil zones.

Pat Lynch keeps his definition of conservation tillage to one short sentence: tillage that maintains 30 per cent surface residue up until the time of planting the Corn Guide, September 2014

next crop. He says that one proviso is important because a grower might have 30 per cent residue after tillage on winter wheat stubble, but by the next spring there may not be that same amount of residue in place.

“In some cases, you need more than 30 per cent, so conservation tillage keeps 30 per cent residue cover during those critical erosion times of early spring, up until mid-May,” says Lynch, an independent agronomist. “We really want to conserve the soil and prevent erosion.”

Know your limitations To Lynch, that’s the important message — to conserve soil, prevent erosion and deal with the residues left behind by intensive cropping practices. Some farmers get caught up in the definitions of vertical versus conservation tillage, but to Lynch, the latter is a means of dealing primarily with the strengthened stalks in the corn sector. He says vertical tillage, on the other hand, is really a type of conservation tillage.

Lynch says that most farmers could adapt their farm practices to conservation tillage, but there are some factors that

could be challenging. For one, conservation tillage costs more, particularly from the perspective of the added unit cost and the horsepower requirement. But Lynch notes it’s possible to mitigate that hurdle by renting what you need.

Soil type and weed management also play a part in the consideration for conservation tillage. Managing residues on sandier soils typically doesn’t require deep tillage. At the other end of the soil spectrum, the heavier clay soils can be damaged by an implement pulled through in a late and wet fall. That’s why silt-loams are a natural fit.

As for weed management, Lynch believes he’s seen more volunteer corn in fields that used conservation tillage on cornstalks in 2013.

“We have seen that many times before, where if you use conservation tillage, you will have more volunteer corn,” Lynch says. “Second, you tend to have more annual weeds than if you use no till or mouldboard plowing. Perennial weed pressure will be less with conservation tillage because some of the species — like dandelion — you’re destroying. Some of the others, like perennial sow thistle, you’re breaking up those roots, causing more of the dormant buds to grow, which can make control easier. If you have a large undisturbed root mass, many of the buds can lay dormant until the first growth is sprayed off in the spring.” CG 27

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HR

Make a better impression If you think it doesn’t matter what impression you make, you could hardly be more wrong

By Pierrette Desrosiers, psychologist and coach

want to talk about marketing… yourself. Usually, marketing is associated with products or services. But what about self-marketing? For decades, experts have studied how to use marketing to attract customers. They know that they can sell you a product if they are able to make you feel good about yourself, or if you think that the product will prevent you from feeling bad.

Emotional Marketing, as it is called, is messaging that builds your ego. It can make you feel smarter, bolder, more sophisticated, or just about any other emotion fundamental to your self-esteem. By making you feel better about yourself, the brand being marketed is no longer just a product; it becomes a friend and part of your identity. “I drive a BMW” can lead to “I am a successful person.” You feel that these brands share your values and priorities.

But how do you market yourself?

Let’s start by recognizing that you are already doing it. Like it or not, we leave our mark. Our mere presence affects others; we leave an “emotional imprint.”

How do people feel when they are in your pres-

People will forget what you said, people will forget what you did, but people will never forget how you made them feel — Maya Angelou ence, and afterwards? Is their ego nourished? Do they feel important, respected and understood? Do they feel that you really care about them?

The way you interact, the words that you use or don’t use, and your non-verbal communication all contribute to your emotional imprint. Emotional imprints can be so strong that just thinking about someone has the power to make us feel good, comforted and happy. Or, alternatively, it can leave us feeling upset, disgusted, afraid, or uncomfortable.

This imprint is built into your limbic system and stays there forever — the stronger the emotions, the stronger the imprint. The human being is above all 34 country-guide.ca

an emotional being. The latest research in neuroscience shows that decisions are usually made through our emotional brain before our rational brain, even if we are totally unaware of it most of the time. We feel first, and then we analyze.

Yet when I interview the staff and family members on farms, many tell me that they work harder, more efficiently, and with a more positive attitude when the boss is on vacation.

As a leader, your staff and suppliers will try to give their best only if you make them feel good about themselves. Think about your own experience. How do you react when others leave a negative emotional imprint on you?

So, in the future, when you interact, be aware of yourself and take the time to ask a few questions: What impact do I make on others?

Would I choose myself as a boss, partner, spouse, or parent?

Do I interact with others, in tone and behaviour, the way I would like them to interact with me?

How do others tend to react in my presence?

What would I like other people to say or think about me?

Are my actions in line with my expectations, values, and goals?

What is the emotional impression that I wish to leave?

What would I like to be remembered for?

As emotional beings, we have far more impact on one another than we often realize. Years later, someone may not remember what you said or did, but they will remember the emotional impact you left.

As a farmer, you leave a footprint that you should care about. But as a human being, you leave an even greater impact.

So as you make your mark, why not try to make it a positive one?

In your everyday life, be conscious. As a leader, boss, parent, or spouse, you can make the difference.

Since you market yourself anyway, why not do so in a kind and inspiring way? CG Pierrette Desrosiers is a work psychologist, professional speaker, coach and author who specializes in the agricultural industry. She comes from a family of farmers and she and her husband have farmed for more than 25 years. (www.pierrettedesrosiers. com) Email: pierrette@pierrettedesrosiers.com.

September 2014

P.Ag. THE ONTARIO AGROLOGIST First of a series outlining the role of the Ontario Institute of Agrologists in providing quality service to the industry

T

he Ontario Institute of Agrologists represents nearly 500

means something to me, and it means something to my

Professional (P.Ag.), Technical (T.Ag.) and Articling (A.Ag.)

employer that I’m making decisions that could leave my

Agrologists in Ontario. In December 2013 the Ontario

employer liable to be sued.” Having that certification helps to

Legislature passed Bill Pr15, which updated the previous act

ensure professionalism, and those licensed HR professionals act

from 1960.

independent of government involvement.

In a recent conversation OIA Registrar Terry Kingsmill, P.Ag. discussed the new Act and its value to members.

Q: How does this new Agrologist Act affect the OIA, its membership and

“ It’s been proven in Canada, and in other democratic countries, that creating a regulatory body that operates at arm’s-length, or farther, from government is a very effective way of ensuring quality service for the public interest.”

the public?

Terry: I’d say that the OIA is, in some ways, a new organization through this new act. It’s an important evolution for this organization in its capacity to serve a mission to build public confidence in agriculture, agri-food, the agrienvironment and agribusiness in Ontario. Our 1960 legislation could not even allow this institute, or me as its registrar, to stop

— Terry KIngsmIll, P.Ag., And OntArIO InstItUte Of AGrOlOGIsts reGIstrAr

It’s been proven in Canada, and in other democratic countries, that creating a regulatory body that operates at arm’s-length, or farther, from government is a very effective way of ensuring quality service for the public interest.

anyone from identifying himself a P.Ag., or to stop putting the

The safety net that government can provide is a broader

P.Ag. decal on her pickup or business card.

public good, and the rationale for achieving that

The second issue dealt with Professional and Technical Agrologists and an enforced requirement for ongoing learning, practical competency and professional development. So, the new act gives us the ability to begin to be a quasi-regulatory college for individuals who want to be part of our high standards for professional and public accountability.

Q: What government body supervises OIA?

broader public good. So through an act of the legislature, government can create a “college” or an institute that has specific jurisdictional powers and authorities to serve in that “complementary” public good. That’s an important element in determining that someone has met entry-level requirements for a specific area of service to the public, and requirements maintaining a professional status in that area.

Terry: The OIA is not a government agency. We’re not tied to

If the public has any questions as to whether someone is, in

or connected to any government entity, and that includes

fact, a registered member of the OIA they can simply go into

OMAFRA. We don’t report to them, we don’t file anything with

our website, www.oia.on.ca and under the Find a Member tab,

them — and this is a rather different situation with OIA than

you can enter the name, and see if that person is “a member in

exists between other provincial Institutes of Agrology and their

good standing” with the Ontario Institute of Agrologists.

respective governments.

The complete 2013 legislation is posted on the OIA website

Q: What other member-based entities

under Standards and Regulations.

are structured like the OIA model?

Terry: I’ll give an example of an organization that is also

Upcoming Country Guide issues will feature interviews

non-mandatory in Ontario, and that’s Human Resource

from the Ontario Agrologist with individual OIA members

Professionals. It’s not mandatory that they be licensed, but

practising across the diverse Ontario agricultural,

there are over 20,000 individuals who are. That’s a pretty

agri-food and agribusiness value spectrum.

healthy number of individuals who have decided that “it

www.oia.on.ca

Succession In agricultuRe

Succession shock So, you think farmers are on top of Canada’s succession challenge?

By Amy Petherick uccession planning has become a pretty sexy topic in agriculture. Every hip and trendy professional office for farmers is mailing out their own shiny leaflet to everyone they know about it, and no self-respecting event planner would even think of hosting an agricultural conference without at least one workshop on transferring the farm to the next generation.

But hold the champagne, because farmers still aren’t buying it.

The workshops may be full, but the work itself isn’t moving off the “someday” list.

Debra Hauer of the Canadian Agricultural Human Resources Council helped create a Human Resources Tool Kit just last year which included, of course, a succession module. “Succession planning has been a hot topic for a while across the country, and there are a number of good resources,” Hauer says, and she begins to tick off the fact sheets contributed by various provincial governments and producer associations.

Most of those fact sheets and resources focus on the traditional understanding of succession planning, i.e. the intergenerational transfer of a business. But Hauer’s kit also addresses the less familiar definition of succession planning, where an employer creates a plan to ensure there will be replacements ready to step in for all key positions.

“Succession planning is a part of the general HR function… to make sure that the people are in place to ensure success,” Hauer explains.

Hauer tells me the kit has been well received, especially by farmers whose businesses are really growing, so they will have the right managers and the right skill sets in place as their business continues to get larger and more complex.

In fact, a number of organizations have bulk purchased the tool kit too, and one university has even deemed it a required text for students. “In the summer and fall last year, I contacted people who had purchased the tool kit and the feedback was excellent,” Hauer says.

But when I ask her what farmers specifically said about the succession section of the kit, she pauses and then responds, “Quite honestly, there have been no comments about the succession section.”

It isn’t an isolated case. When you look beyond the workshop attendance numbers and the book sales

36 country-guide.ca

figures, and when you try to find actual evidence that farmers are implementing enough succession plans to match the scale of impending succession squeeze, the numbers just don’t add up.

When it comes to planning for the future of the farm, it seems, the agricultural industry could use a little less talk and a lot more action.

This isn’t unique to the farm community. A Canadian Federation of Independent Business (CFIB) study conducted in 2012 found that over half of all small and medium enterprise owners in Canada had no plan at all for what will happen to their business when they’re done with it. Only nine per cent of businesses had a formal succession plan.

To get a sense of how farmers compare, just one year earlier, Ipsos Forward Research found 19 per cent of a sample of farmers from Ontario did have formal succession plans.

Daphne McGuffin, who creates succession programs for both farm and non-farm families at BDO SuccessCare, agrees that farmers are usually better at initiating succession than the average business owner.

“Farm families, generally speaking, do a better job because it’s their legacy,” McGuffin says. When she recalls all the studies she’s been reading in recent years, she says the basic summary is that 80 per cent of all business owners would like to see their business stay in the family but 50 per cent don’t expect that to actually happen. “The sad thing about that,” she says, “is they’re making the decision without really trying.”

McGuffin remembers that when she was first getting started in the succession business, back in 1996, there was little awareness at any level about succession planning, and she believes business owners had reasonable excuses for poor planning then.

A 1999 report by Deloitte & Touche after all was the very first to offer insights into small business succession in Canada. Their questionnaire revealed that 43 per cent of Canadian business owners didn’t even believe it was important to keep a business in the family. As well, 70 per cent had not yet selected a successor and 66 per cent of respondents had no process for selecting one, although 56 per cent planned to retire within 10 years and another 22 per cent within 15 years.

Farmers might therefore be doing better than some other sectors. But are they still doing too little?

September 2014

business

We hunted for evidence Canada has enough succession plans.

The numbers just don’t add up A team of English and American researchers published data in the August 2010 J ournal of A griculture , F ood S ystems , and C ommunity Development comparing farmers’ relative expertise in succession planning globally, and its 1997 survey of Ontario and Quebec indicated that roughly 40 per cent of farmers had already identified a successor at that time.

Yes, that’s right, about 40 per cent had identified a successor already in 1997 and 15 years later, just 19 per cent of farmers had written a succession plan.

McGuffin says two CFIB surveys, administered first in 2005 and then repeated in 2012, establish even more disturbing trends.

“Back in 2005, 60 per cent of business owners said ‘it’s too early’ to start their succession plan,” she tells me. “In 2012, the response only went down to 52 per cent.”

McGuffin continues on to the next excuse, i.e. “no time toAddeal the issue.”

Name:with More beans please Back in 2005, Trim Size:28 7" per x 5" cent gave that as an answer.

In 2012, it was 29 per cent.

Publication: Country Guide Safe Area: n/a As Due an Date: excuse, “Can’t find adequateBleed: advice and tools January 31, 2014 n/a to start,” becomes even more suspicious since 17 per

cent listed it in 2005, growing to 21 per cent in 2012 despite all the work that governments, farm organizations and advisory firms have put into the issue.

Other responses which increased included “the process was too complex,” plus the number of farmers who simply didn’t want to think about leaving (up from eight per cent to 13 per cent).

With numbers like that, McGuffin believes there is a real problem in the succession-planning field.

The fault doesn’t only belong to farmers. “I don’t think advisers are addressing three fears that business owners have,” McGuffin says. “One is the fear of loss of wealth, the second is a loss of control or identity, and the third is fear of conflict.”

Recently, loss of wealth has been more of a concern for other businesses impacted by the economic downturn, but farmers are hardly immune to exterior factors.

The fact that a third of business owners with succession plans had to revise their existing succession plans, delayReference for billing: Bunge Canada More beans please ing accelerating Fileor Resolution: 300ppi their exit date according to CFIB, Billing Invoice to: supports McGuffin’s point that succession planners Colour: CMYK Synthesisneed Agri-Food Network Designer: Norm

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Succession In agricultuRe Continued from page 37 to do a better job of incorporating contingency strategies for market fluctuations.

Meanwhile, the No. 1 reason for lack of farm progress is farmers’ fear of losing their identity.

Yet experience shows that such fears can be swiftly mitigated by post-transitionplanning exercises that identify exciting opportunities for the exiting generation, McGuffin says.

Fear of conflict is more stubborn, yet it can be managed too. “Choosing a successor means you’re saying no to somebody else,” McGuffin agrees. “When it’s your kid, that’s pretty hard to do.”

In order to help farmers overcome these hurdles, McGuffin says BDO SuccessCare teamed up with the Agricultural Management Institute (AMI) to produce interactive resources that will be harder for farmers to leave unopened on a shelf. One of their most comprehensive resources, the Choose your own Succession online tutorial, is best

described by Ryan Koeslag, AMI’s executive director, as a quick and dirty succession tool.

“Really what we’re trying to encourage is taking it to your adviser,” says Koeslag, “but we were worried there are a number of accountants or succession-planning consultants that know one process and one process only.”

Koeslag says they don’t want to encourage farmers to eliminate professionals from their succession planning efforts because AMI baseline research has found that farmers get greater satisfaction from outside succession training than from any other strategy.

While there is no clear confirmation that farmers are following through with their advisers, the interactive nature of the resource does provide immediate feedback on user behaviour.

“We know it’s had a lot of really good hits,” Koeslag tells me. “Even prior to launching the program, promotions within BDO and just word of mouth generated over 400 hits, which was phenomenal.”

As a farmer involved in two operations himself, Koeslag knows first hand how difficult it can be to get that plan written on paper. But AMI’s research also shows that, of farmers retiring in the next five to 10 years, 67 per cent believe succession planning is a valuable practice.

Exactly how valuable was established by Pricewaterhouse Coopers last year. Companies that transition without a succession plan experience a 29 to 32 per cent drop in business in the first three years post-transfer.

In other words, if all the farmers who say they want to develop a succession plan actually got around to getting the job done, the income hit on agriculture would likely be slashed by billions.

Koeslag isn’t holding his breath.

“For the most part, succession planning is the most supplied resource, but a fairly small percentage of the industry — too small from our perspective — seriously engage themselves in it in a constructive way,” Koeslag says. “We want that succession conversation to start from Day 1.” CG

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www.canadianfga.ca 38 country-guide.ca

September 2014

Succession In agricultuRe

Getting there from here The buzz these days says that succession is a journey, not an event. But who has the map?

By Andrea Hilderman n entire industry has built up to support farm succession planning. And for good reason. With a typical farm in Canada worth millions of dollars and requiring numerous staff, and with so many farms having related businesses and supporting two or more families, transition of the business to the next generation involves a lot more than a handshake and a slap on the back.

Just don’t look for a lot of statistics or hard numbers about how many farms are going through succession, or how many billions of dollars’ worth of assets they’re discussing.

This may be the biggest phenomenon that Canadian agriculture has ever witnessed, but neither the federal government nor the ag universities nor anyone else really has a good handle on just how big it is. And no one really has a good handle on how well farmers are doing at meeting the challenge.

Anecdotal evidence, of course, is as common as mailboxes all across rural Canada.

“Statistics Canada does have some good data on farm operators,” says James Bryan, senior agricultural economist with Farm Credit Canada in Regina.

“As does the Canadian Federation of Agriculture.”

There are estimated to be over 140,000 farm operators over the age of 55 still actively farming in some way on something in the neighbourhood of 17,500 farms.

It’s thought they control something in excess of $50 billion in farm assets, much of which will change hands over the next 10 years.

It’s also recognized that the ability of the successor to service the debt required to buy the farm is a real issue, and that increasingly, it is an issue that can take many decades to resolve, with serious implications for both the retiring and the successor generation.

Just to state the obvious, servicing a large debt can restrict the new farmer’s ability to make the best business and production decisions for his or her particular situation.

The good news is that many farmers are stepping up to the plate.

“My experience spans over 40 years, but in the last decade I find more and more farm families are realizing the importance of the succession plan process,” says Len Davies, principal of Davies Legacy Planning Group Inc. “They are focusing on issues September 2014

beyond just tax planning, but looking at tailoring a business plan and strategy that takes into account family dynamics as well as the business itself.”

They’re even coming to accept some of the hardest truths. “The failed farm succession,” Davies says, “is not the fault of an accountant who made a mistake. Rather it usually is a result of some breakdown in the family itself.”

More push, more pull

“Farming has become sexier,” says Lance Stockbrugger, a chartered accountant, consultant and full-time farmer of 4,000 acres in east-central Saskatchewan. “In recent years, it has become a viable and desirable option for the next generation, and it is preparing itself accordingly.”

The next generation of farmers is pursuing a rigorous education in agriculture combined with usually, but not always, off-farm employment to gain independence, skills and a greater appreciation for the industry before it makes the decision to come back to the farm.

“The added difficulty with farming now being an attractive job and lifestyle, is that not only does one child want to farm, they may all want to,” Stockbrugger says. “How does the farm handle that? How can Mom and Dad and the kids figure out who gets to farm and who does not, and how to make that fair?”

There’s also more pressure for comprehensive succession planning, Stockbrugger says. “This is accomplished by thinking through how every major decision they make is going to affect the succession of their business.”

It also means looking reality in the eye. It may be that not all the children who would like to farm will be able to. “Try to make decisions that will make it easier to transition farm assets later on” says Stockbrugger.

“As more family members become involved in the operation, more income is needed to provide for those families. This can be accomplished by having less custom work done such as trucking products to market, agronomy services and so on. Income could also be created by thinking outside the box entirely and starting new ventures — purchasing equipment for custom work or finding work for existing equipment outside of non-peak times.”

Continued on page 40 country-guide.ca 39

Succession In agricultuRe Continued from page 39 However, when Stockbrugger conducts succession seminars and planning sessions for Farm Credit Canada, he still finds the audience is a “roomful of grey hairs.”

“There should be 20- and 30-yearolds in the audience, especially if they themselves have families,” Stockbrugger says. “Like saving for retirement, planning for a succession and having 30 to 40 years to do so gives you much greater ability to get your ducks in a row.”

Another advantage of thinking about and planning for succession with decades left on the clock is that more consideration can be given to farm business structures. “Corporations are the lowest-taxed business structures,” says Stockbrugger.

“But it is very difficult to transition assets and land, especially to more than one successor and especially if those two are not going to be farming together.”

Stockbrugger usually likes to advise that the land be kept out of the corporation and a family trust be created to own the shares of the corporation. “While this is more costly to set up, it really does pay off in spades down the road with the flexibility it offers,” he explains.

“Ownership structure should get a lot of attention very early on in the process.”

Finding a way to talk

The message has gotten out that open and honest communication within the family about goals and aspirations is just as important — or even more important — than the financial aspects of the succession.

“Successors need to explore where they have deficiencies, for instance in financial management or human resource management,” says Davies. “Once identified, these deficiencies can be worked on through training, off-farm employment opportunities, or mentoring.”

Indeed, in today’s environment, continuous skill development over the entire course of a farmer’s career is vitally important. Technology is changing in farming at an incredible rate, and if the farm doesn’t keep up with advances in technology or agronomy or anything else, it risks being left behind and becoming unprofitable.

“Failed successions, in my experience, have little to do with the business structure or the transition of assets,” says Stock40 country-guide.ca

brugger. “Failed successions are often due to a lack of management training — the young farmer who has never had to spend $400,000 on a new combine or $20,000 on a repair. It can be overwhelming and despite their skills as an agronomist or operator, if they can’t manage the financials, failure is certainly a risk.”

Another bigger change in the last number of years as the business of farming has provided better, more reliable returns is farmers realizing that they need to work on the farm, not just at “farming.”

“Where is the farm business going to be in five years, 20 years?” asks Davies.

“What needs to change when there are marriages, additions to the families and, unfortunately, farmers are not immune to divorce? These are all areas that should be considered and planned for.”

Another longtime practitioner and educator in the field of farm succession is Terry Betker, president and CEO of Backswath Management. He also lectures at the University of Manitoba and has lived through two farm successions of his own.

“In the last four to five years, the biggest change I’ve observed, for the first time maybe, is the accumulation of wealth in farm families and the impact that is having on succession,” says Betker.

“We’ve seen this accumulation of wealth

“ How can Mom and Dad and the kids figure out who gets to farm, and who does not?”

— Lance Stockbrugger on the farm elsewhere in the EU and even eastern Canada, but now it is becoming the Western Canadian experience.”

Transitioning ownership and management in this environment and being fair and equal to everyone requires a lot of thought, planning and time. “Farms are also more complex these days,” notes Betker. “The size of the business, the structure of the business and the human resources required to run the business can be as involved as any non-farming business of equal capitalization.”

The leadership challenge

Betker believes a much greater understanding of leadership is necessary to execute a successful transition.

“Farmers are realizing, whether they like it or not, that they have to spend less time on a tractor and more time at a desk,” says Betker. “This is a challenge for a lot of folks who are in this business because they truly love the work of farming, the outdoors, the machinery, the crops and animals and so on.”

Back in the early ’90s, awareness of succession planning was building. It really hit the radar later that decade as the farming population aged. The 2001 census showed there was a larger percentage of farmers over 55 years of age that in previous censuses.

“Now people are more aware that they should have some greater formality around the succession question,” says Betker.

Now, however, the pendulum may in a way have swung too far. “I think it may have gotten to the point,” says Betker, “where there is now some mystique about succession, and maybe they overthink it.”

While there are no black and white answers to the questions of succession, it’s also not rocket science. The biggest question or conundrum to solve is how the non-farming children are going to be treated.

“I am seeing more and more situations where the non-farm children retain some ownership in the farm business as shares, for instance,” says Betker. “There can be buyouts or exchanges of cash over time, or right away, as well. It really is for the family to determine their best strategy to keep the family on the same page.”

Another common theme is the retiring generation retaining or being advised to retain ownership in the farm. “Their continued ownership is their best risk mitigation strategy towards their own retirement and the continued success of the farm,” says Betker.

Betker also agrees with Stockbrugger and Davies that succession planning should be entrenched in good farm business management.

“Every investment and every strategy should be undertaken with a view to positioning the farm for the next generation,” says Betker. “I am finding that lenders are also moving in that direction. They are very interested in the long term view because that is just plain good business management.” CG September 2014

business

First steps

Are you getting more and more convinced that it’s time for a succession plan for your own farm? If so, here are some thoughts from the experts on how to get started, beginning with the most important question of all: What does our retirement look like?

“The retiring couple has to have a focused discussion on what retirement really means to them,” says Terry Betker of Backswath Management. “This means the when, how and what of retirement... their vision of retirement.” Betker goes on to say that most couples don’t actually have this sort of deep, detailed discussion and can sometimes find that when they do, they have very different views of what their retirement years will look like. “An ironclad plan is not critical at this point,” says Betker. “But this is an essential first step to take before involving the rest of the family in the process of succession.”

Bring the family together

Financial performance

Once Mom and Dad have talked about retirement and are on the same page, it’s time to have a family meeting.

“What’s important with this meeting is the purpose and the attendees,” says Betker. “All the children, and their spouses, should be at this meeting so everyone hears everything together. One-on-one meetings are not advisable at this stage of the process.”

“This first meeting is an exploration of what everyone’s goals are,” says Len Davies of Davies Legacy Planning Group. “By airing these aspirations to the group, there is less likelihood of making assumptions and causing family arguments later on.”

At the end of this meeting, the goal is to have some timelines, some expectations and some actions to follow up for the next meeting date, which also should be an outcome of this gathering.

At some point early on in the process, the family needs to understand what succession is going to mean for the financial performance of both the farm and the retiring generation. This is another area where experienced professionals can play an important role in analysis and advice. “This is also the time to look critically at the strengths and weaknesses of the business,” says Davies. “It also will unearth challenges the farm faces and what has to be done to prepare for the succession to be successful.”

Introduce accountability into the process At this point, the family should try to introduce some accountability into its succession process. “There are two easy ways to do this,” says Betker. “Either hire a facilitator who can help the family drive the process and keep it on track, or be rigorous about scheduling the next meeting date after each meeting.” By doing this, the process will be more likely to stay on track and on the schedule that has been agreed to by the family.

Seek out tools and resources “Every provincial government ag website is loaded with resources on farm succession,” says Betker. “So, too, are organizations like Farm Credit Canada and others.” While some may see these resources as overwhelming, they can be very helpful in enabling discussions through the use of the questionnaires and surveys they contain.

“If I had only one thing to advise farm families about succession, it would be the sooner the better,” says Davies in conclusion. “By creating a road map to succession with as much lead time as possible, the family can figure out how to service its debt, fund retirement and still grow the business.”

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country-guide.ca 41

Succession In agricultuRe

It’s all different now High land prices are driving innovation in how to distribute your land

By Amy Petherick arming without some startup help from your family can definitely mean an uphill climb. But getting the gift of a farm inheritance isn’t always such a blessing either.

Many farmers will tell you it would have been impossible for them to get started in the business if it hadn’t been for a “hometown discount” from Dad or an early bequest from Mom. But examples of self-made farmers aren’t unheard of either.

It helps explain the surprise when ag economist Alfons Weersink at the University of Guelph studied farmland values for the Canadian Agricultural Trade Policy and Competitiveness Research Network in 2011, before the bull market of the last three years.

Weersink found Ontario land values had soared from $500 per acre in 1961 to over $3,500 per acre in 2009. But he also believes many, many farmers never really paid these full prices for their farms and he thinks at least one full generation of farmers across Canada got started with a familial gift of some kind.

“There was a wave of immigrants that came over after the Second World War with very little and started farming,” says Weersink. “But since that time, it has been the next generation of the family that has taken over land.”

Weersink doesn’t have hard numbers to prove what price the land has actually sold for on these farms, but it’s been his experience that some sort of discount is generally involved in passing the farm operation from one generation to the next, largely because of the high asset prices relative to the annual returns.

So the irony is that, while market prices for Canada’s farmland have certainly increased, it may only mean that the size of the gifted portion has increased by nearly the same amount.

It isn’t exactly what our wannabe farmers who don’t have a family property to inherit want to hear, Weersink says.

Young farmers who get a start with discounted land definitely have a competitive edge, Weersink says. And as the size of the gift increases, so does the edge. “It ends up improving their cash flow and increasing the farm’s profitability.”

42 country-guide.ca

John Wilkin, director of business development for Allied Associates in London, Ont., agrees that it is much more difficult for beginning farmers who don’t have a spouse, parent, or grandparent to help them get their hands on some family farm assets.

Even so, Wilkin thinks rising land values have also made things a little less rosy for today’s farm heir too.

“The land has easily doubled, or in some cases tripled, just over a very short period of time so the non-farming children suddenly have an interest in what’s going on with the farm,” says Wilkin. “Back 30 years ago, Mom and Dad were eager to have one of the family carry on the farm and the only way that could be accomplished was to eliminate the other children from whatever funds might be left. The perspective is changing; there is a desire to be closer to equal than before.”

Wilkin says he is seeing more families than ever achieve this equalization through the use of insurance policies. Typically a “last to die” policy is purchased to ensure that, upon the parents’ deaths, there will be enough funds to buy out the nonfarming siblings.

This can work particularly well in conjunction with a corporate business structure. But Adrian Spitters, senior wealth adviser with Assante Capital Management Ltd. in Abbotsford, B.C., adds a warning. He says that if the corporation buys such a policy and if the proceeds go directly to the parents’ estate to be distributed to the children, these funds could be subject to tax.

Spitters suggests his clients talk to their accountant and their insurance provider about the option of making the farm corporation the policy’s beneficiary. “You want to take advantage of the capital dividend account within the corporation,” he says.

“If the money goes into the corporation, you can then disperse it so that the non-farming children get their money tax free out of the dividend account.”

In a heartbeat, Spitters can rhyme off all sorts of creative ideas for gifting the farm. Maybe it’s because British Columbia boasts some of this country’s highest farmland prices. Or maybe it’s because he has already lived through a generational farm transfer in his own family. For whatever reason,

September 2014

BUSINESS

Spitters offers a unique lens on the blessings and the challenges involved in gifting the farm.

“I don’t think there’s a way of saying there is a fair or equal way at today’s prices,” Spitters starts with. There are simply too many complexities to consider, in his opinion. For example, he points out that farm rollovers to family carry with them a tax bill which parents often forget about. As long as the children farm until their own children take the operation over, and their children after them in perpetuity, the tax bill just keeps getting passed on. But at some point, someone’s estate is going to wind up paying that bill when you get to the point where nobody in the family is willing or able to farm any longer. “You’re not getting rid of the tax, you’re just passing it on,” Spitters says. “If you’re the one who’s going to sell the farm because the kids aren’t going to take it over, you’re going to have this tax bill to deal with, and you need to plan for that somehow.”

“Non-farming children suddenly have an interest in what’s going on with the farm,” Wilkin says Plus, there’s another little-known curse in disguise, this time for the parents who bestow the farm blessing.

“When you roll over the farm tax free to the next generation, there is no attribution back to the parents if they hold on to the farm for more than three years,” Spitters explains. “But, if the kids decide they don’t like it or they run into financial difficulty and they’re forced to sell the farm within those three years, attribution rules will now make that tax bill payable back to the parents.”

This is why parents need to be protected to the fullest extent possible, says Wilkin. “When we had those high interest rates, there were many situations where Mom and Dad transferred the property and there was no security taken,” he recalls. “They could have easily put a second mortgage on (the farm), and it would have protected them where there were defaults, but instead Mom and Dad got nothing.” Wilkin says this is why it is a good idea for parents and their kids to get independent advice during succession planning. He realizes it is tempting to save a little money up front by sharing lawyers and accountants, but experience has taught him that succession is just one of those areas where an ounce of prevention is really worth a pound of cure.

If it’s starting to seem like the simplest thing to do is just to forget about gifting the farm to any family at all, especially if no one seems to REALLY want it anyway, and if it seems the best thing is just to bite the tax bullet that comes, Spitters offers one last fringe idea worth considering. “Farmers are giving people,” he observes. “Why not give to help young farmers who really, really want to farm?”

Spitters runs into young people who have what it takes to become great farmers, but they need a little help in getting started, and he suspects great alliances could form between such up-and-comers and “heirless” established farmers look-

ing to retire. To his way of thinking, if these farmers could donate to some sort of trust, with the trust responsible for setting up a low-cost loan or guaranteeing a bank loan to get the new farmer started, you would create a win-win situation for everyone involved, and you would also serve a public interest by seeing the heritage of the family farm protected. “Unfortunately, there is no way right now to actually donate farmland and get a deduction,” says Spitters.

Interestingly, Spitters’ idea is mirrored in an ongoing Ontario Farmland Trust Agricultural Gifts campaign, which is also being supported by such organizations as the Nature Trust of New Brunswick and the Land Conservancy of British Columbia. Advocates are calling for the extension of the Ecological Gifts Program, which offers income tax incentives in exchange for voluntary donations of ecologically significant land or conservation easements to designated conservation agencies, to include donations of productive agricultural land.

Spitters believes such programs could solve some of the cost issues that keep so many young farmers out of the industry by transferring land ownership out of the trust as a critical component. It’s a pattern already set by the Maine Farmland Trust. Since 2007, that trust has purchased five farms deemed vulnerable to development, placed conservation easements on them, and resold them to farmers. CG

> Empty Pesticide Container Recycling Program

There are many reasons to rinse. #1

Only rinsed containers can be recycled

#2

Helps keep collection sites clean

#3

Use all the chemicals you purchase

#4

Keeps collection sites safe for workers

#5

Maintain your farm’s good reputation

No excuse not to!

more information or to find a collection { For site near you visit cleanfarms.ca

Now, take your empty fertilizer containers along for the ride!

SEPTEMBER 2014

country-guide.ca 43 10901A-CFM-5Reasons-QRTPage-CountryGuide.indd 1

4/2/14 11:59 AM

business

Swede Hawk

Curiouser and curiouser… corn brings Swedish equipment manufacturer Väderstad to rural Saskatchewan to buy the Seed Hawk brand

he sign at Seed Hawk’s air drill manufacturing facility in rural Saskatchewan says “Welcome.” Maybe, though, it should now be “Välkommen,” seeing that Väderstad, a global tillage and seeding equipment brand founded and still headquartered in Sweden acquired a minority interest in Seed Hawk in 2007, and earlier this year took over its former Canadian partner.

“We have been part of Seed Hawk since 2007 and we know each other very well,” said Christina Stark, CEO and managing director of Väderstad, during an exclusive interview with Country Guide earlier this summer. “So it was actually a very natural step when we bought the rest. We are both technically innovative, driven companies. And we are always thinking of how we can develop products that are best for farmers.”

It was that technical innovation that actually led to tighter integration between the two brands, and it’s ultimately what drove executives in their respective corner offices to realize that a Swedish takeover made sense from both sides of the Atlantic.

“ We know each other very well,” says Christina Stark, CEO and managing director of Väderstad.

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“They were looking at how to get (the new Väderstad Tempo high-speed corn planter) into the North American market,” says Pat Beaujot, former president of Seed Hawk and now its director of strategic market development.

“We started talking about how are we going to do this. We’ve got a company that they own 49 per cent of that wants to be a part of the U.S. corn market. For freight reasons they looked at whether they should build the planter in Iowa in the heart of corn country. We convinced them they have a good factory here. It can only be more efficient if we just get bigger. I think in the end they decided we were probably right. It’s better to grow the plant where it is.”

Väderstad agreed, but didn’t feel comfortable investing that much more in the plant without owning more of it, which was a point that made sense with Seed Hawk’s Saskatchewan owners. But the Saskatchewan team couldn’t see pumping in the dollars that the corn expansion would require.

“That required more investment than we were ready for at our stage,” Beaujot says.

“When we launched the Tempo, which can work at higher speeds, we saw the possibilities in North America so we wanted to keep on investing here,” confirms Stark. “We had a discussion, and after a while we came to the conclusion that it was time for us to take over the rest (of Seed Hawk). We saw a lot of synergies between the companies, also with R&D and sales development.”

Those synergies were the reason Väderstad management first decided to partner with the Canadian firm.

“We were looking for big air seeders for the market in Australia, Russia and Kazakhstan,” says Stark.

“Seed Hawk was mainly sold in Canada and we had a big market in other parts of the world, so it fit very well together and there were no competing products.”

That also made Seed Hawk drills part of a larger line of products here. From Beaujot’s point of view, expanding Seed Hawk’s offerings was important for maintaining the long-term viability of that brand.

“I could see corn and soybeans were moving north into our country, and that was going to reduce the air seeder market a little bit, and I had been concerned about that for a number of years,” Beaujot recalls. “There is an evolution of how people will farm in Saskatchewan.”

September 2014

Photography: Scott Garvey

By Scott Garvey, CG Machinery Editor

business

Currently, the global market for tillage and seeding equipment is a relatively crowded one, so technical innovation and a good product line are front-andcentre priorities for the survival of any brand, whether it has a regional or global focus.

“There are a lot of manufacturers,” says Stark.

“You have to keep on with development and keep on being ahead of your competition.”

So with the official takeover announcement early in 2014, Seed Hawk became a Swedish-owned firm. But its products won’t simply be absorbed into Väderstad’s equipment line. Instead, its Canadian-built air drills will retain their familiar name, and the firm will continue to operate autonomously from its Saskatchewan home.

“We have made Väderstad and Seed Hawk what we call sister companies,” Stark explains. “It means there is no one at Väderstad in Sweden who will be the boss of Seed Hawk. Our long-term ambition is to keep on investing in Seed Hawk, where it is situated in Langbank.”

There will, of course, be a new CEO at the helm, yet Seed Hawk’s current principals, Beaujot and Brian Dean, vice-president of research and development, will remain with the company as senior executives for the foreseeable future. “We’ve signed on for five years,” says Beaujot. “We’ll see where things go after that.

They wanted us to stay on during the transition.”

Transitioning a previously independent company into its fold is new territory for Väderstad management. Despite its global footprint, the firm has never taken over another brand.

“It’s the first ever,” Stark says with a smile. “We September 2014

have 12 subsidiaries, but only for sales, and we have a small, small production facility in Russia. But this is the first time we buy another company.”

Retaining the existing executive staff in Saskatchewan seems likely to not only ease the integration, but also to help Swedish owners deal with the cultural differences that could be a stumbling block if not handled correctly.

“Of course, there are cultural differences between running a company in Canada and in Sweden,” Stark acknowledges. “You make sure you travel here frequently and some Seed Hawk staff travel to Sweden to get good co-operation between the companies, which is most important, getting people to work together.”

The acquisition gives Väderstad an even stronger foothold for growth in North America. It also means the Langbank, Sask. plant will see faster expansion in the near term. Beyond that, Stark isn’t ruling out further acquisitions as part of the brand’s global strategy.

“It could be part of it at least,” Stark says. “Maybe in the future there will be something more coming.”

But it is unlikely executives will want to wander outside their current manufacturing field by adding additional equipment types. Instead, expansion into previously untapped market regions is more likely.

“We think we should stay with seeding and tillage,” Stark says. But she does seem to have a neversay-never approach to business, and she pauses and smiles at the question of expansion plans.

“There are always possibilities,” Stark says. “You shouldn’t restrict yourself too much. We’ll see what the opportunities are.” CG

Development of the Tempo high-speed corn planter was the impetus for Väderstad taking over its Canadian partner, allowing it to further develop North American markets.

country-guide.ca 45

Legal

Firing an employee It’s best to understand not only the law, but its principles

By Naomi Loewith he best “strategic business thinking” requires not only knowing the law, but also understanding the policies behind it. Many readers will have had to terminate an employee. In this article, I discuss the principles behind the rules for termination “without cause,” that is, where an employee has not done anything that merits being fired, but the relationship simply no longer works. I also note two areas where evolving policy is pushing employment law to change.

When terminating any employee (except for those with a fixed-term contract), an employer must give appropriate notice that the employment is being terminated or give termination pay “in lieu of notice.” The purpose is to give employees, who depend on an income, a reasonable cushion to find alternative employment. An employer can thus give the required notice and the employee will keep working, or pay the employee a lump sum for the notice period but the employee stops working.

The length of notice is determined by a number of factors, including how long the employee has worked, his age and qualifications, and the availability of replacement employment. Each province has a statute that sets out the minimum amount of notice based on the length of employment, but the other factors will usually increase the required time.

Severance pay, on the other hand, is intended to compensate employees for their loss of seniority and their investment in the employers’ business. Severance pay is an additional entitlement that some provinces require employers to pay to longtime employees. In Ontario, for example, employees with more than five years of service are entitled to severance pay if the employer has a payroll of over $2.5 m, or is shutting down completely.

Duty to mitigate A dismissed employee has a duty to mitigate his damages.

That is, he must make the best of the situation. He must take reasonable steps to look for new work and to accept that work if it is available. He is not required to take any available job — he can look for a position with a comparable salary, similar working conditions, and in an environment that is not acrimonious or demeaning.

The same principle applies whenever a harmed party seeks compensation in court. For example, a landlord has a duty to look for another tenant when a tenant breaches a lease and a seller must try to resell his goods if a committed buyer fails to purchase them. This is consistent with the long-standing social policy to encourage people to find a solution before seeking relief in the court, and to preserve (or create) economic value where possible.

Aggravated damages The manner in which an employee is terminated can also affect his entitlements. In the course of a dismissal, an employer

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ought to be candid, reasonable, and forthright. If the employer treats the employee in a way that is unfair, misleading or unduly insensitive, the employee may be entitled to an extra level of compensation called aggravated damages.

An employee might also get aggravated damages if an employer tries to fire him “for cause” where there was no true basis for doing so.

The courts set a high bar for aggravated damages. Employees take a job knowing that it might not last forever. Aggravated damages are only available where the employer’s conduct in terminating exceeds what reasonable people would expect in a professional relationship.

Two areas of development As the business landscape in Canada changes, protections for employees are increasing in two areas in particular.

First, employment law has long distinguished between employees and independent contractors. Courts determine if someone was an employee by looking for the indicia of a “master and servant” relationship, such as how the person is paid, who directs the activity, and who owns the tools of the trade.

Employers have notice obligations to their employees, but not to independent contractors who work for them.

However, in recent years the courts have expanded the idea of “dependent contractors.” These self-employed contractors are entitled to notice or payment in lieu where they have hallmarks of being employees, such as working exclusively for one employer or being economically dependent on that employer.

Second, courts are expanding the extent to which employers must accommodate employees with disabilities. The general rule is that if an employee is no longer able to perform the tasks of the job, the employment relationship has been “frustrated” and can be terminated, subject to notice and severance entitlements.

However, if an employee cannot perform the tasks because of a disability — and the courts apply a broad definition of disability — termination is only permitted where it would create “undue hardship” to accommodate the disabled employee.

Employers may therefore have a duty to reallocate tasks, purchase special equipment, and adopt creative solutions to accommodate an employee. The guiding principle is that employment provides not only income but a sense of identity and self-worth, and courts increasingly require employers to facilitate employment.

An employer’s duties will always depend on the situation, but it is helpful to understand the principles and policies that inform these obligations. CG Naomi Loewith is a lawyer at Lenczner Slaght in Toronto. As a business litigator, Naomi advocates and manages risks for clients in a variety of sectors, and has experience in actions involving all levels of government.

september 2014

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

Targeting nutrient use through soil sampling and analysis

By Lilian Schaer

Improved soil management can help boost yields and lower costs by helping farmers make better use of nutrients they’re applying on their fields.

A project led by Environmental Specialist Peter Doris of the Ontario Ministry of Agriculture and Food and Ministry of Rural Affairs (OMAF&MRA) is working with farmers in York Durham, Haliburton, Peterborough and Kawartha Lakes to encourage practices that improve soil management. This includes a soil sampling program and educational outreach.

“We’re encouraging soil analysis through a sampling program, which is starting to give us some quantifiable information about what the state of the soil is in this area,” explains Doris. “The results will help us make better soil management decisions. For example, are we over-applying phosphorous? So far, we haven’t found that to be the case.”

How was the research conducted?

To participate in the project, farmers must agree to have soil sampling conducted on their farm through the program and pay for base analysis of the sample. Following a meeting to discuss fields and locations, OMAF&MRA prepares the appropriate maps and soil samples are taken and sent for analysis.

This analysis includes phosphorous, potassium, magnesium, calcium, sodium, pH, manganese and aluminum, as well as sulphur, organic matter and zinc - information collected for OMAF&MRA research purposes.

After testing, farmers participate in a workshop to discuss their results and possible strategies for addressing them.

What has the project found?

Sixty-five farms were sampled in 2013 with another 30 that couldn’t be completed

due to the early onset of winter. To date, approximately 90 farms have registered for 2014 and two students are gathering samples over the summer months.

a family succession plan, and for him, the program has been invaluable to help determine what nutrients to apply to the fields they have.

“Farmers are quite interested and willing to have soil tests taken but one of the big barriers is finding enough time to do it and not so much the cost,” says Doris. “When you consider the hundreds of thousands we pay for fertilizer, a soil test is quite a low cost.”

“One of my challenges is that we didn’t have a lot of data and this lets us get a baseline, a starting point for me coming into the farm,” he explains, adding the farm used to produce hogs which provided manure for crops. “What we’ve been able to do is assess in relation to yield and determine where nutrients are best to be applied.”

Of farms sampled to date, results show phosphorous and potassium levels that are generally low to quite low; those fields will show a positive response to fertilizer or manure application, says Doris. Many fields with low levels were perennial hay that have been brought into crop production over the last few years with the rise in commodity prices.

“The workshops help farmers figure out what to do next, where we explain results and help work through nutrient budgeting exercises.

The goal is to try to have everybody have a nutrient budget for at least one of their fields at the end of the workshop,” says Doris.

Norm Lamothe is transitioning into a cash crop farm just south Peterborough through

“ What this allowed us to do is reduce fertilizer in certain areas and fields and apply more in other fields… If I can get even a five per cent yield increase on the same amount of fertilizer by having strategically placed it, that will be an economic benefit.”

— Cash crop farmer Norm Lamothe, Cavan ON

ONTARIO SOIL AND CROP IMPROVEMENT ASSOCIATION

For Lamothe, one of the most beneficial tools has been using OMAF/MRA’s NMAN3 program that will provide some projections on which nutrients should be applied where to maximize growth potential. He plans to continue with his own soil analysis program after the project is over to confirm the nutrient decisions they are making are in-line with the data they are gathering.

“What this allowed us to do is reduce fertilizer in certain areas and fields and apply more in other fields so I’m able to project a 10 per cent increase in yield based on what the fields are capable of producing while spending the same amount of money on fertilizer,” he says. “If I can get even a five per cent yield increase on the same amount of fertilizer by having strategically placed it, that will be an economic benefit. This year will be the proof.”

Where can I get more information?

More information on this project can be found in the Crop Advances section of the OSCIA website at http://bit.ly/1mV9Ii3.

How was the research funded?

The project, a collaborative venture between OMAF&MRA and the East Central Soil and Crop Improvement Association, is funded through an OSCIA regional partner grant.

OSCIA assisted with communication of research results.

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

Linking up By targeting their strengths, satellites and drones can actually complement each other

By Ralph Pearce, CG Production Editor

Felix Weber demonstrates one of the unit’s ease-of-use advantages in launching the UAV.

or “eye-in-the-sky” technology, the last three years have seen some stunning advances, especially in the use of unmanned aerial vehicles (UAVs) and satellite imaging systems. Yet while both made headlines about the same time in 2011, both also had limited success on the farm, as is often the case when new technologies first get into the hands of early adopters and innovators.

This past May, however, things really began to take off for both technologies. Early in the month, a piece in Farm Industry News highlighted the activity of WinField (owned by Land O’Lakes) and its latest addition to its satellite imaging service, as an enhancement of its R7 Tool technology.

Late in 2013, Land O’Lakes purchased French-based Geosys, and in 2014 it was pledging to begin delivering weekly satellite images of crops across the U.S. Nine days later, AgriMarketing ran a short piece in its weekly news updates, referring to a “new constellation of satellites to be launched” for agriculture as well as other industries.

Among the entrants were OmniEarth, Dynetics and Harris Corporation, and Farm Industry News also reported that others including Satshot would be stepping up for the 2015 market.

Meanwhile, Felix Weber of Ag Business & Crop Inc., based in Palmerston, Ont., introduced the eBee Ag system, a significant upgrade from Swiss-based senseFly, the Swinglet Cam manufacturer. Weber was the exclusive Canadian and then North American distributor of the Swinglet Cam, and his excitement was evident during a mid-May open house.

It was at that event that he showcased the eBee’s autopilot capabilities and its software that enables users to mosaic images together for a more comprehensive perspective. In a matter of hours, a farmer can have a detailed image of a field, ready for validation and further management strategies.

Silver lining, not a silver bullet

The eBee Ag unit is lightweight — roughly 750 grams — yet is capable of following a detailed flight plan without the use of remote controls.

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The thing to remember about any of these technologies is that they won’t make you a better farmer with a simple purchase. Sales of less costly, do-it-yourself helicopter-style UAVs offer “drone technology on your own farm” for as little as $1,500 to $2,000. The problem is, unless you can interpret the images, all you get are high-resolution pictures of your crops.

“It’s a tool to get something,” says Weber, referring to both the UAV and satellite imagery. “It’s not about buying a unit, it’s about how you collect the data, when you collect the data and what you do with the data after.”

One of the advantages of the eBee Ag unit, Weber says, is that its autopilot is a step up from most other UAVs, which often require a remote control device of some sort. The autonomous September 2014

production design also includes mission planning, with on-board navigation system that senses wind speed and obstacles such as birds, adjusting flight paths and landing approaches accordingly.

The eBee unit comes equipped with a standard near-infrared (NIR) lens, which can provide biomass indications, growth monitoring and crop discrimination. Options for other lenses include an RE — red edge — design to detect plant stress, chlorophyll indication, drought assessment and senescence analysis. The RGB — red, green, blue — band camera provides real colour two- and threedimensional visual rendering and it can even evaluate drainage systems. Finally, the multispectral camera can provide biomass indication, leaf-area indexing and help with nitrogen recommendations.

But Weber emphasizes again that ground truthing and working with someone who’s experienced are still the keys to making the most of these technologies. “I don’t want this to be like a yield monitor, where everybody jumped on it but didn’t necessarily know how to use the data.”

Not a competition The other unique aspect of these two types of technology is that neither side sees the other as a competitor. In fact, both parties go out of their way to state each technology has its strengths. No up-sell, no trash talk. Weber believes UAVs are better suited to smaller fields — a perfect fit for Eastern Canada — although not out of the realm of the functional for farms in Western Canada. As well, UAVs are not hampered by cloud cover, which can delay analysis in satellite imagery.

WinField’s Dr. David Gebhardt is quick to agree with those two points.

When a farmer needs an assessment of insect thresholds or a heads-up on applying a fungicide in wheat, delaying a day or two can lead to significant yield loss.

As for strengths of satellites, there are far more satellites orbiting above the U.S. than above Canada, at least for the time being. But from Gebhardt’s perspective, satellite imagery’s strength comes from its coverage area — miles above the ground — and its historical vantage point. Through Geosys technology within WinField’s R7 Tool, a farmer could work back as many as 10 or 20 years by some claims, and garner historical perspectives to help with planting or in-season issues.

The really good news is that there will September 2014

It’s one thing to have satellite imagery made available through a system such as the R7 Tool, but also important is the expertise needed to extrapolate the data. Photo: courtesy of WinField come a day when a company pulls all of the sensing and imaging technologies together — from active (ground-based) sensors like GreenSeeker or OptRx to UAVs, all the way into outer space with satellite imagery.

“Satellite imagery was a good place for us to start because the technology was already developed, and over the past three years, we’ve experienced considerable advancements,” says Gebhardt, director of agronomic data and technology with WinField. “I can see a day where there’s a full range of offers that a farmer should be able to choose from.

We plan to work with technology companies like senseFly and Trimble, and

some others that have some very nice systems that can bring all of that information together in one overall sort of remote-sensing offer.”

Gebhardt also echoes Weber’s belief that the technology is just a tool. It needs to be supported with interpretive skills, or else it becomes a high-priced — but potentially low-value — toy.

“Now we’re talking about real data that’s ground truthed and validated, and bringing some intelligence behind the really cool pictures,” says Gebhardt. “So let’s work together and see how this technology can be combined with our agronomic expertise and really bring something that has value to the farmer.” CG

Right to fly Federal authorities in Canada and the U.S. are aware and wary of drones, or unmanned aerial vehicles as they are more properly called. In the U.S., farmers who purchase their own units are urged to follow all Federal Aviation Administration guidelines, even to the extent of informing airports within a set distance of their fields as to when the units might be in flight.

In Canada, Felix Weber of Ag Business & Crop Inc. says that with Transport Canada one of the criteria is based on the weight of a UAV and its potential for causing damage in the event of inadvertent collisions. The eBee Ag Unit weighs about 750 grams, even with the cameras loaded in, so damage is kept to a minimum.

In spite of any administrative misgivings, senseFly representatives have stated that similar systems can be used — and are being used — in forestry, mining, conservation and environmental management, land surveying and urban planning. They’ve also been used in other parts of the world for emergency assessments of accident sites, hazardous material cleanups and even locating missing people.

country-guide.ca 49

Production

Check these out A just-in-time preview of what to make sure you see at this year’s Canada’s Outdoor Farm Show

By Ralph Pearce, CG Production Editor

For farmers, it’s a little like Christmas in September. There’s the waiting and the anticipation, and then, when you’re actually touring the Canada’s Outdoor Farm Show site, there’s all the thinking and the dreaming of how best to use all the incredible things you’re seeing.

That’s why Country Guide is providing this catalogue-like preview of what many of the seed, trait and chemical companies will be showing off at this year’s event.

Besides, it isn’t only the chance to see the newest varieties and hybrids that attracts you to Woodstock. It’s also to get up close to all those experts on how to grow a better crop, whether that means higher yields, improved quality, or farming with greater efficiency.

As always, a little preparation will help ensure you see the innovations that are most likely to make a potential impact on your farm, and that you ask the right questions to get the right expert answers.

So here — arranged alphabetically — is our look at what you’ll find at 2014’s edition of Canada’s Outdoor Farm Show.

BASF

There are plenty of plots to visit throughout the Outdoor Farm Show site, plus company staff to help keep you informed on the latest genetic traits and strengths.

BASF is providing a co-operative approach to showcasing both Priaxor and Eragon. Priaxor is the company’s new fungicide and will be applied at a number of different seed company plots, on both corn and soybeans.

Priaxor boasts two active ingredients — pyraclostrobin (found in Headline) and a new active, Xemium.

Together, they provide a more consistent and continuous level of disease control. The plan is to have this new fungicide available for more crops for 2015. But the Outdoor Farm Show will give growers a chance to learn more about Priaxor and its performance on corn and soybeans. According to Rob Miller, technical development manager with BASF, there will be company personnel on site to discuss corn leaf diseases and application timing, along with storyboards and posters providing additional information.

You can also drop by BASF’s display and ask about application timing with Eragon as a harvest aid and desiccant for use in dry beans as well as in soybeans. BASF only recently established maximum residue limits using Eragon, and it will be available for those uses in soybeans and edible beans in 2014.

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Here’s a reminder, though. Growers should consult the processing and exporting companies they deal with in advance of using Eragon as a harvest aid/ desiccant to ensure the marketability of their crops.

September 2014

production Bayer CropScience

C&M Seeds

Already, 10 per cent of farmers in Eastern Canada report having issues with glyphosate-resistant weeds, while 77 per cent of Canadian farmers say that resistance is an issue they are either “concerned” or “very concerned” about.

Herbicide resistance is getting recognized as everyone’s potential problem, and at Canada’s Outdoor Farm Show, representatives from Bayer CropScience will discuss several options using multiple modes of action to mitigate the spread of resistant weeds.

Liberty 200 SN herbicide delivers fast, broad-spectrum weed management solutions in Liberty-tolerant corn. A postemergent, contact herbicide with a wide window of application, Liberty is the only Group 10 herbicide, so rotating Liberty-tolerant crops with glyphosatetolerant crops can help manage your risk of herbicide resistance.

Vios G3 uses three different modes of action to help control resistant weeds, and is the broadest-spectrum in-crop residual corn herbicide.

Converge XT uses multiple modes of action to reduce the risk of herbicide resistance and is reportedly the most consistent crop-safe solution for grassy and broadleaf weed control, according to University of Guelph trials that compared weed control with pre-emerge herbicides in glyphosate- or Liberty-tolerant corn. It’s stated that Converge XT provided the most consistent control of the annual grass and broadleaf weeds present, thereby decreasing the risk of weed seeds being returned to the soil.

When it comes to Canada’s Outdoor Farm Show, C&M Seeds really is in a class by itself. Although the company doesn’t have any plots on site, the staff has a solid reputation as a group of wheat specialists able to share a wealth of knowledge and expertise on the crop, whether that’s discussing the strengths of various varieties or reviewing your crop plans and budgets. Even if your wheat seed has been ordered and delivered for fall planting, there are still those last-minute details to lock down or some timely reminders on calibration or residue dispersion to help make planting easier and get your crop off to its best start.

Drop by C&M’s display for a look at its wheat sheaves and a glimpse of the traits in its new varieties, including height comparisons and standability.

And remember, when it comes to growing a better wheat crop, there’s more to success than picking the top variety in the trials. Some varieties will work better in certain situations, and the more you talk to the experts about what’s happening on your farm, the better they can assist you with finding the variety that will work best with your crop plans.

September 2014

Horizon Seeds As an independent, family-owned seed company, Horizon Seeds Canada Inc. says it is dedicated to providing farmers with complete access to the tools they need to be successful. This year, Horizon Seeds will be showcasing its latest and best corn hybrids and soybean varieties adapted for Ontario farms.

Horizon Seeds sources its genetics from top suppliers in North America, screening thousands of corn hybrids with hundreds tested in any one given year. Then only the proven hybrids and varieties are selected for production and sale to customers.

Continuous growth and improvements are made to Horizon Seeds’ seed production and conditioning. Its rapidly expanding research and development program and enthusiastic support staff mean Horizon Seeds is positioned to offer Ontario farmers flexibility, options and a wide range of choices for important seed selection. If you haven’t checked them out, the Outdoor Farm Show may be the right opportunity.

Hyland Seeds (Dow AgroSciences) For Hyland Seeds, this year’s Outdoor Farm Show will feature product plots where you can see and compare Hyland crop plots under real field conditions.

There will be new corn hybrids, soybean varieties, and some cereals on display.

The company will also offer a “Population Wheel,” where you can discover how corn hybrids and soybean varieties perform under various populations and pressures. Hyland Seeds’ agronomists will be on hand, so stop by and talk to the experts, and learn how they can help maximize performance, profitability and sustainability on your farm.

Plus, the Dow #3 NASCAR, driven

by Austin Dillon, will be on location during the show, and the company is inviting growers to stop by for a photo. You can also fill out a ballot for your chance to win a tool box valued at more than $1,000.

Maizex Seeds Maizex Seeds is known for its passion for innovation. As an independent and Canadian-owned seed corn and soybean company, it accesses every trait technology currently registered in Canada, and sources the best in genetics and traits worldwide. The company’s lineup provides the most innovative products available to assure growers of high yield, consistent performance, and exceptional standability.

The company strategy is based on the discovery that genetic diversity can reduce risks and lead to higher yields. Maizex Seeds accesses its genetics through a worldwide pool of modern corn germplasm and uses multiple sources of inbreds to assure broad genetic diversity. The company combines these unique genetics with insect resistance and herbicide tolerance technologies, along with the most advanced seed treatments.

For 2015 planting, Maizex Seeds is showcasing its commercial corn product lineup that is 100 per cent Refuge-Ina-Bag (RIB). The extensive corn hybrid lineup includes Maizex Brand Genuity SmartStax RIB Complete Corn, VT Double PRO RIB Complete Corn, VT Triple PRO RIB Complete Corn, X-Series, Leafy Floury and Maizex Brand Agrisure 3122 E-Z Refuge Corn.

Continued on page 52 country-guide.ca 51

PRODUCTION Monsanto Monsanto calls it “The Next Step in Weed Control Technology” and it will be on display at Canada’s Outdoor Farm Show.

Increased yield potential from enhanced early-season weed control and clean fields are expected with Monsanto’s upcoming Roundup Ready Xtend Crop System, and it’s safe to say many growers are eagerly awaiting a system that will aid with management of tough-to-control weeds.

The Roundup Ready Xtend Crop System will consist of Roundup Ready 2 Xtend soybeans and dicamba-based herbicide options. This new soybean trait is based on the Genuity Roundup Ready 2 Yield trait, with tolerance to both dicamba and glyphosate.

These options are designed to provide an extra mode of action against tough-to-control broadleaf weeds, plus residual activity for a wider window of application. The Roundup Ready Xtend Crop System will be on display at Canada’s Outdoor Farm Show and Monsanto technology development representatives will be on hand to answer any questions or give a tour through the plots.

AVAILABLE BACHELORETTES Pam, 49 - 5’4 110lbs divorced, business owner, loves horses, sailing, shopping, travel I don’t sweat the small stuff, my life is great, I laugh everyday and appreciate every moment.

Michel, 58 - I am in my fifties and I am in the best shape of my life and have a trainer. I love to be in excellent health and am an occupational therapist and health is vital. I have no debt and no bad habits.

Mycogen Seeds (Dow AgroSciences) Mycogen Seeds is once again giving visitors the opportunity to see the roots of their corn using “The Big Dig.” The Big Dig is a trench lined with glass that is dug out tightly beside Mycogen’s corn plots created solely for the purposes of displaying roots. This year, The Big Dig walkway will display roots under the stress of soil compaction.

“We expect people are still very interested in seeing their corn hybrids from this unique perspective,” says Tim Borho, territory sales manager with Mycogen Seeds.

Mycogen will also showcase its corn hybrids, including SmartStax and Refuge Advanced options, an Enlist plot, as well as its robust lineup of soybeans. Mycogen’s soybean lineup has expanded considerably in the past few years. Backed by Dow AgroSciences, Mycogen soybeans are bred, researched and developed throughout Ontario with the main research facility located in St. Marys, Ont.

Pioneer At this year’s Outdoor Farm Show, Pioneer will focus on the important role growers play in helping feed the world and its growing population. In addition, the company will be asking how growers see themselves contributing and sharing that responsibility.

Along with seeking growers’ opinions, Pioneer will be presenting opportunities to learn more about its Optimum Aquamax technology, which is designed to use water more efficiently. In conjunction with that, Pioneer is also launching an on-site contest for growers, with a chance to win a trip to the Mayan Riviera. Also on display will be the new

T-Series soybeans, along with the “T contest,” and a chance to win steaks and a Weber barbecue.

Another component of this year’s Pioneer display will be a Focus on Forages, including the new 11AFT Sila-Bac brand inoculants, and the entire Sila-Bac brand inoculant Fibre Technology lineup. There will be new certified dairy representatives on hand, so you can learn more about Pioneer’s brown mid-rib hybrids and corn silage. Pioneer staffers will also be there with details on the Encirca service system, featuring whole-farm decision services, for real-life decisions in real time.

Of course, Pioneer will be serving free slices of pie, a show favourite.

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52 country-guide.ca

Pride Seeds The team at Pride Seeds will be showcasing several new corn hybrids and soybean varieties at the Pride Seeds Pavilion at Canada’s Outdoor Farm Show. New hybrids for multiple maturity ranges featuring Genuity Smartstax and Genuity VT Double PRO RIB Complete will be the focus of several plots, in addition to the PRIDE FX2 system featuring several new Genuity Roundup Ready 2 Yield soybean varieties.

Additional information will focus on “common-sense strategies to increase yield and profitability no matter the commodity price in the market” and “how to get the message out” to friends and relatives on how modern agriculture is

protecting the environment. In addition to the Pride Seeds Total Ration Solutions Plot at the Pride Seeds Pavilion, the company is also sponsoring the corn silage harvesting and equipment demonstration.

“We are extremely proud to sponsor this event through our Total Ration Solutions Silage program,” says Stephen Denys, vice-president of sales and marketing with Pride Seeds. “Demonstrations like this one are an important part of the decision-making process on the farm, not only in terms of evaluating new products for purchase, but also to use the information to fine tune management systems from seed through to harvest.”

Continued on page 54 SEPTEMBER 2014

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

Theme: Marketing

A

s the summer rolls on, the task of determining what to do with the expected crop harvest takes on greater urgency at this time of year.

Marketing the production of the past year has become a routine part of farming, especially as farm businesses produce larger amounts and the markets around the globe open up to them.

The Christian Farmers Federation of Ontario (CFFO) understands the importance of marketing. As a General Farm Organization in Ontario, representing more than 4,000 farmers and their farm businesses, the CFFO spends time on marketing its values and work in the Ontario Agricultural Industry. The organization has a weekly commentary that expresses opinions on a wide range of topics; these are heard Fridays on a number of radio stations and can be read on our web site.

This year the organization is celebrating 60 years of representing its members and has partnered with the Canadian Foodgrains Bank with more than 140 acres committed to the work of this project. There are a number of large signs across Ontario to indicate the location of these projects organized by our district associations. At the upcoming CFFO convention we will reflect on the past as well as

A general farm organization that is rooted in faith and guided by values

• 22 District Associations Across Ontario • Supporting our members since 1954 • A Professional Organization of Entrepreneurial Farming Families

www.christianfarmers.org look forward to many more years of work.

The CFFO will have a booth at the Canada’s Outdoor Farm show in the Ag-Biz Pavilion on Sixth Lane between Upper Machinery Mall and Middle Machinery Mall; come visit us and review our position on a number of issues of importance to Ontario farmers. As one of the organizations that farmers receive their FBR number through, we work diligently to bring sound

long-term thinking to the Ontario Government and the agriculture ministry. We are family farmers working for farming families.

So as the summer turns into autumn the CFFO wishes all the hard working farmers across the province a safe and successful harvest. As part of the agri-food industry of Ontario we can use our resources and expertise to continue feeding the people of our communities and the world.

A professional organization of entrepreneurial farming families

Production

SeCan

Syngenta Canada

SeCan is using its opportunity at the Outdoor Farm Show to demonstrate how it lives up to the company tagline: “Genes that fit your farm.”

“We’re back in the winter wheat game with top-performing products to offer our customers,” says Martin Harry, marketing manager at SeCan. New varieties Wave and Emperor are topping performance charts in Areas I and II. These locally adapted varieties will be followed by more from the four public wheatbreeding programs supported by SeCan in Ontario.

Harry says SeCan’s investment in these “at home” breeding programs is evidence of the organization’s longterm commitment to delivering value to Ontario’s farmers. “We work closely with the University of Guelph and Agriculture and Agri-Food Canada — as well as Grain Farmers of Ontario — to maintain and expand our research activities,” adds Harry. “Our reputation is built on performance, and local testing helps us make that promise a reality.”

Ultimately, it’s this promise of local performance that has been the cornerstone of SeCan’s value proposition over the years, along with the vast network of member companies that make it possible to minimize overhead costs.

“SeCan is Canada’s largest supplier of wheat seed,” says Jeff Reid, general manager of SeCan. “We’ve worked hard to build the business to this level — on the foundation of top genetics — grown and processed locally. Growers can count on SeCan for regionally adapted varieties and a commitment to support our Ontario-based breeding programs.”

The Syngenta Dome will return in 2014 with a chance to learn more about growing top crops. As well, the NK plots at the Syngenta Dome include a Genuity Roundup Ready 2 Yield lineup with six new varieties.

“Our portfolio is continuously advancing,” says Greg Good, product lead for corn and soybean seed with Syngenta. “We’re introducing great highyielding varieties that come with strong disease packages from Maturity Group 0.7 to 3.4.”

In addition to touring the plots and seeing NK varieties hard at work, you won’t want to miss an exciting program

54 country-guide.ca

WinField Solutions Precision ag is buzzing throughout the industry, and WinField will be showcasing the R7 Tool, recognized as leading innovation in precision agriculture and for its simplicity for users to apply. With R7, a grower can map, create yield history and identify management zones for a field within minutes. Add the ability to import and export additional data and you have what may be the most complete precision product available on the market. The R7 will be available for growers to map fields on their farms during the show.

Spray technology is also changing and WinField leads with more in-depth research and understanding of how the product in your spray tank reaches its target. Products like Interlock Drift and

launch around the Genuity Roundup Ready 2 Yield portfolio from the NK brand. NK brand corn hybrids will also be on display with nine new hybrids featured in plots across a wide range of maturities.

Syngenta says it will also use the dome to reinforce its commitment to helping farmers grow their best crop.

Whether a grower is focused on return on investment, yield or quality, Syngenta says it will work with them to recommend the technologies and practices that will best achieve those goals. A broad portfolio lets the staff integrate technologies — genetics, traits, seed care and crop protection — to fit farm-specific needs.

Deposition product provide spray operators the resource to put more product where it needs to go by reducing drift while increasing canopy penetration.

Interlock is a unique patented product that reduces the quantity of fine water droplets that are drift prone. The WinField Spray Table will be set up to demonstrate the effectiveness of Interlock.

Croplan Brand seed will be highlighted with several new corn, soybean and alfalfa products. Croplan’s approach to meet your needs is unique in the industry. Our Answer Plot Program identifies the different responses of each hybrid to population, nitrogen, rotation and soil types. Placing the product to match the field and production needs increases the need to optimize each acre for maximum production while managing the input needs of the crop. CG September 2014

soil matters………..www.ifao.com

Top Ten Reasons to Use Gypsum on Your Soil written by Kate Procter

Sometimes it is easy to get so caught up in the next new thing, we forget about some of the old things that worked pretty well.

Gypsum, “God’s original slow release fertilizer,” may be one of those things.

4. Reduces water runoff and erosion: Because of the dispersion effect, Dr. Norton and his researchers were able to reduce runoff and soil loss by about 75 per cent with a single surface application of gypsum. This in turn helped to reduce fertilizer runoff.

Used by both Thomas Jefferson and Benjamin Franklin on their farms, gypsum, explains Dr. Darrell Norton, can help solve many problems that still plague crops today.

“With the use of modern, high-yield fertilizers, gypsum has been forgotten,” he says, but in the past 20 years researchers and farmers alike have been rediscovering the benefits of its use.

5. Prevents soil waterlogging: Adding gypsum creates a dramatic effect on moving water through the soil. This allows water to get down to tile and leave the field. As a result, ponding is reduced as drainage is improved.

Dr. Norton’s top 10 reasons to use gypsum: 1. Improves soil structure: This is especially important in high-clay soil that crack severely in dry weather. In these types of soil, the addition of gypsum provided enough improvement that crops could be successfully grown.

2. Prevents soil crusting and aids in seedling emergence: Adding some gypsum to the soil can help keep an even electrolyte balance in the soil. This helps prevent the soil from developing a crust, and this in turn, helps seedlings germinate. Even soils that had three per cent clay were able to benefit from reduced crusting. Sandy soils that can surface seal were also improved.

3. Improves compacted soil: Compacted soil can form a layer that prevents roots from forming. This is typically removed by deep ripping using mechanical means, but the layer often reforms due to poor soil structure and chemical properties. This mechanical method is also expensive because of high cost of fuel and dragging heavy equipment through the fields. Addition of gypsum, while improving soil structure, can also help improve soil that has been compacted.

6. Helps stabilize organic matter: When gypsum is added to soil, carbon molecules produced by microbial life are stabilized.

7. Helps plants absorb nutrients: The soluble calcium in the gypsum increases root mass and surface area available for water uptake.

As a result, water stress is reduced in dry conditions when gypsum has been added and there is improved micronutrient uptake.

8. Source of soluble calcium and sulfur: Gypsum is a much more soluble source of calcium than calcium carbonate in rainwater and does not need acid to react to provide soluble calcium. Gypsum also contains sulfate, which can be used as a nutrient directly by plants with no need to convert to a usable form. Both of these nutrients are vital to plant growth.

9. Helps prepare soil for no-till management: Gypsum addition changes soil structure sufficiently to get better seed to soil contact in high clay soils.

10. Keeps clay off tuber and root crops: This is especially important for sugar beets, peanuts, and tillage radish, as cleaning clay off the crops can be a large problem.

In conclusion, gypsum can be an important tool for improving soil health, provides nutrients in a slow-release way, and is especially well suited for conservation tillage systems.

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.

WEED CONTROL UPDATE Can I do anything to get rid of vetch before seeding soybeans? n my last column, I discussed my optimism for vetch control in soybeans using a few different pre-plant burn-down herbicides.

Specifically, I had been impressed by some preliminary results when either flumioxazin (found in Valtera, Step-Up, Fierce and Guardian Plus) or saflufenacil (found in Eragon, Integrity and Optill) was mixed with glyphosate and the adjuvant Merge.

I promised to provide an update on the level of control because I wasn’t completely convinced that the control we saw early in the season would last.

Past experience has shown that when herbicides that burn leaf tissue quickly are tank mixed with glyphosate, perennial weeds tend to grow back quickly.

Although the treatments discussed above provided impressive burn of any emerged vetch at four weeks after application, the vetch did grow back at eight weeks after application.

However, there was an unexpected silver lining in this trial. The addition of 2,4-D ester 700 in burndown treatments, although somewhat unimpressive at first, provided better control of vetch than any other treatment at eight weeks after application.

Bottom line: 2,4-D ester 700 applied pre-plant in soybean looks like a promising tool for the control of vetch in soybeans, provided vetch has emerged at the time of application. More trial work will be needed to verify the consistency of these results.

Vetch pressure in a plot where the burn-down treatment was ineffective at controlling vetch.

Vetch control at eight weeks after a pre-plant application of glyphosate plus 2,4-D ester 700. Glyphosate was applied prior to soybean flowering to remove any late-emerging weeds.

A look at the level of vetch control under the crop canopy when 2,4-D ester was used in the pre-plant burn-down.

56 country-guide.ca

SEPTEMBER 2014

w e at h e r MILDER THAN NORMAL

C ai Fro oo n s l / s ty no w

Co Sno ol Rai w n

R MILDER THAN NORMAL NEAR- TO BELOWAVERAGE PRECIPITATION

Warm Some rain

NEAR-NORMAL TEMPERATURES AND PRECIPITATION

W Sto et spermy lls

NEAR NORMAL

m War ery w Sho ells p s

September 14 to October September 18, 2014 14

ONTARIO

Sept. 14-20: Highs reach the 20s in the south, teens in the north. Sunny overall although rain falls on a couple of occasions, chance heavy in places. Frost risk north.

Sept. 21-27: Fair with seasonal highs but a couple of cooler days bring some rain and brisk winds. Frost occurs on a couple of cool, clear nights central and north.

Sept. 28-Oct. 4: Cooler north with frosty nights. Frost threat central areas and some southern localities. Fair skies alternate with occasional rain. Windy at times.

Oct. 5-11: Temperatures fluctuate with night frost central and north and near zero in some southern areas. Fair overall but rain on two or three days, possibly heavy in places.

Oct. 12-18: Blustery, cool and wet days will alternate with pleasant days and mild temperatures. Frost threatens southern areas on a couple of clear, cool nights.

QUEBEC Sept. 14-20: Expect a few clear, cool nights but otherwise highs crest in the 20s in the south. Frost pockets central and north. Mainly sunny but heavier rain on a couple of days.

Sept. 21-27: Fair and seasonable most days but rain occurs on a couple of occasions, possibly heavy in some areas. Frost central and north with a threat in the south.

Sept. 28-Oct. 4: Cooler, windy days bring rain on two or three days with highs mainly in the teens. Frost central and September 2014

north with lows near zero in the south on a few nights.

Oct. 5-11: Variable temperatures under windy conditions at times. Fair but rain on a couple of occasions, chance heavy in places. Frost threatens south on a few nights.

Oct. 12-18: Fair, seasonal to mild days alternate with cooler, windy and wet days. Frost and some wet snow in the north. Frosty on a few nights in southern regions.

ATLANTIC PROVINCES Sept. 14-20: Seasonal to mild and pleasant most days but a disturbance brings rain on a couple of days, chance heavy in places. Occasionally windy. Frost patches far north.

Sept. 21-27: Unsettled, windy and wet weather will alternate with fair skies and highs frequently in the teens. Frost threatens a few inland and northern localities.

Sept. 28-Oct. 4: Fair but occasional rain and windy on two or three days this week, chance of heavy rain in a few areas. Highs in the teens with nighttime frost patches inland.

Oct. 5-11: Variable temperatures and weather conditions this week as rain alternates with fair skies. Blustery from time to time. Inland frost, more extensive north.

Oct. 12-18: Unsettled and changeable with fluctuating temperatures. Intermittent rain, chance heavy, with possibility of strong winds. Frost inland on a couple of cooler nights.

to October 18, 2014

NATIONAL HIGHLIGHTS Most of the country east of Alberta will see changeable weather conditions as shorter days and cooler temperatures take hold, with several weeks mixed with cool, wet spells. Following earlier trends, by contrast, British Columbia and much of Alberta will see pleasant, dry and relatively mild days. Most of Canada will end up with near-normal temperatures and precipitation, although somewhat more unsettled conditions may affect Atlantic Canada in this period due to passing weather disturbances. Meantime in several far-northern locations, snow will make its first arrival in October. A developing El Ni単o is not expected to influence the Canadian weather pattern before late fall or perhaps 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. country-guide.ca 57

LIFE

Too young, too old The generation gap is coming back with a vengeance, and farm families need to watch out

By Helen Lammers-Helps he concept called the “generation gap” might not have become a buzzphrase until the ’60s, but undoubtedly there have been generational differences as long as there has been history. So why should today be any different?

In fact, however, today may be exactly that — different. With the current speed of cultural and technological change, the generation gap may be wider and more damaging than ever.

Or, it could be wider and better than ever, depending on your perspective and your flexibility.

While we usually see these generational differences as a bad thing, that doesn’t have to be the case, asserts Jim Soldan, a farm business adviser in Chilliwack, BC. “Generational differences within the family farm can be hugely positive or hugely negative. It all depends on how you approach it,” says Soldan.

It helps to know what you’re looking for. Most important, what are the trigger points for intergenerational conflict? Uncertainty is a huge issue, points out Elaine Froese, a farm family coach in Boissevain, Man. and co-author of the book: Farming’s In-Law Factor — How to have more harmony and less conflict on family farms.

If there is clarity about expectations, agreement as to how things should unfold, and a commitment to act, there will be a lot less conflict, says Froese.

There are other stumbling blocks that Froese sees again and again on the farms where she’s been called in to help sort things out.

Sometimes, the founder’s inability to let go of the reins impedes the transfer of ownership to the younger generation, says Froese. After spending a lifetime building up the farm, the owner may be afraid to retire, she explains.

Unfortunately this leaves the younger generation hanging, wondering when they will get more responsibility and a chance to build up their equity.

Today’s young generation has been told essentially from birth that they need to get ahead, and if they don’t feel they are making progress, Froese says, they are going to go elsewhere.

“It can be very frustrating for young, educated people joining a farm team if their education, offfarm work experience or training isn’t recognized or valued by older members of the farm team,” Froese explains.

58 country-guide.ca

The younger generation really wants to put their stamp on the farm operation, agrees Lynne Lancaster author of The M-Factor: How the Millennial Generation Is Rocking the Workplace. Too often the older generation’s response is to balk at change.

It would be more productive to listen to the younger generation’s ideas and try to find a way to incorporate some of them into the farm operation, she says.

Likewise, it can be equally frustrating for older family members when their kids come back to farm with them but don’t value the wisdom their elders have gained from years of farming, says Froese.

Young people may not even recognize how important this issue can become. Leaving a legacy is really important for the older generation, agrees Lancaster. She advises the younger generation to talk to the older generation about their vision and to really listen to them.

Sometimes the senior generation is slow to transfer ownership out of the fear that if the succeeding generation divorces, it will impact negatively on the farm. While it’s important to consult a lawyer to ensure that the proper legal paperwork is in place, Froese encourages families to focus instead on ways to help strengthen the marriages of farm owners.

This also applies to the marriage of the senior generation, which may also be at risk, she adds.

Other times, the senior generation may be waiting for the younger generation to marry, not recognizing a common-law relationship. “The senior generation has no choice but to express their ‘displeasure’ in the only way they know how,” says Soldan. “They are trying to protect family wealth as best as they know how.”

His advice to the younger generation in this situation is to have an attitude change. “With marriage, there is at least some confidence that the knot tied may be more difficult to untie than if the relationship is merely common law,” he says while also recognizing that formalized marriages come apart too.

Froese agrees that a wedding “speaks to the commitment in a relationship.” We have few norms or rituals for acknowledging common-law relationships, which can make it awkward for others, she continues. However, in her book, Froese quotes Gloria Call Horsley who uses the term “unofficial inlaws” to describe one’s relationship to the parents of one’s common-law partner.

September 2014

LIFE Another area of conflict that springs up regularly between the generations is work-life balance, says Froese. Younger generations want time for family and for personal renewal, she says. They may not be as willing to sacrifice their personal lives for the sake of the farm as the previous generations.

Lancaster agrees, but she adds that sometimes the older generation is too quick to judge the younger generation as lazy. The younger generation really wants to find a way to be more efficient so they can still have time for their families.

Lancaster believes it would be better for families to sit down and discuss their goals and answer the question, “Can we work smarter?”

Sometimes, too, the younger generation is perceived as being less loyal, hopping from job to job.

However, Candace Laing, a human resources professional in Saskatoon says that this generation has learned to manage their own careers because organizations no longer offer lifetime security.

“They have had to look for growth opportunities to develop their skills and ensure they are employable.” She continues, “Retention and loyalty are possible, they just likely won’t be sustained by nonexistent job security and pension but rather by purposeful work and engagement.”

Things may be different on the farm. But remember, these are your sons’ and daughters’ friends, and their attitudes help shape your children’s values.

Meanwhile, for the parents, it can be good to recognize your opportunities to build bridges. For instance, while generational differences often lead to conflict, technology is one area where the senior generation can take advantage of the expertise of the younger generation.

“They’re used to being our coaches,” says Lancaster. “They’ve been doing it since they were kids.”

And while the younger generation seems to think there’s an app to solve every problem, there may be places where technology really can improve the bottom line of the farm operation.

So, in a nutshell, what’s the secret when it comes to defusing generational conflict?

It’s communication, our experts all agree. Generational differences become a problem when there’s been a lack of dialogue, say Soldan. Each person on the farm team needs to share their needs, wants and where they’re coming from.

He recommends the farm family team meet regularly and develop a Code of Conduct that governs how team members will interact. For example, all members may agree to listen attentively, and that there will be no “eye rolling.” Team members should also maintain a positive attitude: “we’re in this together and we need to help each other.”

If every farm put the same energy into the farm team as they put into deciding what tractor to buy, farm businesses and farm families would be in much better shape, says Soldan. “People spend hours talking to the tractor salesman but not to other family members.”

September 2014

Froese agrees. Farmers are spending a lot of money on technology but are overlooking communication, she says.

Soldan advises farm families to seek professional help if needed. He uses a toothache analogy. “If you had a toothache you’d call a professional,” he points out. This is no different, he says.

Unfortunately, too often our response to conflict is to not have the difficult conversations. However, avoiding talking about the issues only makes the situation worse, stresses Froese. Problems do not go away by themselves. CG

How to shoot yourself in the foot when dealing with in-law conflict Eight Easy Steps (From Elaine Froese, farm family coach and coauthor of Farming’s In-Law Factor) Triangulate and Gossip: Refuse to speak to the person or persons you’re in conflict with. Instead, complain to everyone else in the community and expect the key parts of the message to be magically leaked to the key players. Expect at least half of the message to be lost or misconstrued in the transfer of information.

Stonewall: Refuse to deal with the problem and interfere with others’ attempts to do so. The simplest way to do this is to hang up the phone or get up and leave the room any time the topic is mentioned.

Try to control others and their actions. If persuasion doesn’t work, look to various oppressive dictators from around the world for other inspiring methods.

Be judgmental about everything they do or say. Nitpick at every little detail. Always attack the person, their actions, their ideas, their morals, their family, and even their choice of footwear and hairstyle, if need be.

Hold firm to your position, no matter what anyone else says, no matter how ridiculous your position is.

Complain incessantly about the situation, but do nothing to change it. Be insistent that it is ALL someone else’s fault and that you are a completely innocent bystander.

Hold a grudge. Forever. Even if it wasn’t a big deal. Slip references to the incident into conversation occasionally just to keep the wound fresh, but avoid having a serious conversation about what happened (see #2 Stonewall).

Insist that everyone in the family do everything your way or else pout, sulk, or throw child-like tantrums until they do.

country-guide.ca 59

h e a lt h

Warts — more than skin deep

By Marie Berry

f you’ve ever had a wart, you will know that they are embarrassing and inconvenient, but not usually harmful.

All warts are caused by viruses, specifically the human papillomaviruses. There are many different strains, and because these viruses are easily transmitted from person to person, childhood warts are a common result from contact when children play with each other.

Warts are also often transmitted in public spaces such as gyms, public showers, and the like.

Warts are skin lesions no larger than a half-centimetre in diameter. They can occur anywhere on the skin, but most often on the hands. They can also be flat or elevated, and they usually have a rough surface.

Applying tree sap under a full moon may not work, but what about duct tape?

The incubation period averages two to 18 months, so you may not even remember being exposed by the time that you notice the wart. About 50 per cent of people have “spontaneous cures” because the virus diminishes in numbers. However, recurrences are possible.

Few if any symptoms are associated with warts.

They can be esthetically unpleasant, however, and when warts are visible or occur in groups over extensive skin areas, you may curtail activities to avoid having people see them. Sometimes too, there can be tenderness, and if you scratch or “pick at” the wart, irritation can result.

Plantar warts affect the bottom of the feet. It is the pressure on the weight-bearing surfaces of the soles and/or heels that flattens them. The surface of the plantar wart may reveal multiple tiny black dots that tend to bleed when the surface is scraped. These warts can become large and cause pain, discomfort, and even affect mobility.

Non-prescription wart removers usually contain

keratolytics which remove keratin (the skin cells that comprise the wart). Because these ingredients can remove healthy skin, you will want to protect the skin surrounding the wart. Applying adhesive tape with a hole cut in it no larger than the wart will protect your healthy skin. Stick it on your skin before you apply the wart remover and leave it in place until the remover dries. Some keratolytic wart removers are available as medicated pads that you can position over the wart.

Unfortunately, it can take weeks or months with repeated applications to remove warts with keratolytics, and if you have numerous warts the process can be impractical. You may be tempted to “cut off” the wart, but you risk damaging your healthy skin and you also risk infection. However, you can soak the wart in warm water to soften it and rub the surface gently with a pumice stone to remove upper layers.

Freezing the wart with liquid nitrogen can be done by a health-care professional, but there also is a nonprescription product that you can use on your own to freeze warts. Having a health-care professional do this might be the better option, because if you miss the wart you risk damaging your healthy skin. Scarring and infection are potential complications.

Other approaches include surgical removal and laser therapy, both by health-care professionals.

Regardless of your treatment, repeated therapy is usually needed over three to four months, and wart recurrence is possible.

Numerous traditional methods exist for wart removal and range from procedures done at a full moon to application of specific types of tree sap, but using duct tape does seem to help. Soak and remove any dead skin, then apply a piece of duct tape slightly larger than the wart. It needs to be kept in place for about six days, then the process is repeated again for about a month.

And you thought duct tape was only for repairs!

Marie Berry is a lawyer/pharmacist interested in health and education.

Gout is sometimes considered an “old” disease because it has been around for centuries. However, if you do have gout you will know that it can certainly be problematic. Next issue, we’ll look at gout and its treatment.

60 country-guide.ca

September 2014

NOW AVAILABLE Brilliant-red poppies sway in a breeze that blows gently inland from the English Channel, and a three-wire fence separates the cemetery from a neighbouring field of canola.

The poppies contrast with the cemetery lawn, where every blade of grass has been manicured. These are no ordinary poppies, and this is not an ordinary cemetery. Canadian symbols are everywhere but those buried here are far from their Canadian birthplaces. A monument proclaims this ground has been given to Canada by France, which remembers the sacrifice of our sailors, soldiers and airmen in liberating their country from the Nazi grip of the Second World War. The commemoration of the 70th anniversary of D-Day on June 6 attracted world leaders to the Normandy beaches.

My prayer is that their appeals for peace will be honoured.

Two weeks later my wife Jacqueline and I visited the area.

The Canadian War Cemetery at Beny-sur-Mer was peaceful and tranquil. Photos and TV documentaries pay tribute to the final resting place of the war dead but I was not prepared for the surge of emotion that overcame me. Rows and rows of perfectly arranged graves pay tribute to the 2,048 men buried here. Their ages and hometowns are marked on the stones.

They were young and a long way from home. Their families in Canada never saw them again.

I had two poppies in my pocket. Jacqueline placed one near a headstone for a soldier named Phillipe Plante, her paternal family name. I placed mine on a stone marking the grave of “Rifleman George Kindrachuk of the Regina Rifles killed 9 June 1944 Age 25, son of Alex and Paraska Kindrachuk of Hafford Saskatchewan.” I cannot imagine what sadness must have engulfed the Kindrachuk family and their town northwest of Saskatoon.

Earlier in the day we visited the War Cemetery at Ranville, the first village liberated in France. A headstone with the name Harry Andrews caught my attention. Could he have been a relative? He belonged to a British Regiment and died in 1944 at the age of 22. The symbol on his headstone was the Star of David indicating his Jewish faith. The engraving said “Formerly Hans Arenstein born in Erfurt, Germany.” A similarly marked headstone at Beny-sur-Mer for Corporal Israel Pavelow noted he served as Ervin Povol with the Regina Rifles. He was born in Kiev, Russia, son of Hyman Pavelow. What anguish and fear dominated the lives of these men before their untimely deaths?

The cause was so important they changed their names and hid their religion. Unfortunately, the battle for religious and political freedom is still going on in many parts of the world.

Sometimes I reflect on the connections between my life and what happened on the Normandy beaches. The people who were significant in my formation were deeply affected by the war. They were the people who guided my education and formed my attitudes and values. They passed on standards and principles which have guided my life.

We arrived home shortly before July 1. Canadian flags were flying everywhere. My mind went back to Juno Beach where I said a prayer of thanks and I gathered some sand. It will remind me that the freedom and opportunity I have enjoyed, and continue to enjoy, came at a huge cost.

Suggested Scripture: Micah 4:1-5, Luke 1:67-79

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Rod Andrews is a retired Anglican bishop. He lives in Saskatoon. ©2013 Farm Business Communications

September 2014

country-guide.ca 61

ACRES

By Leeann Minogue

Who’s that behind the wheel?

“Nobody better tell Grandpa about this.” onna had done her best to pass her position on the farm to her daughterin-law gracefully. First, she’d passed on her role as bookkeeper to Elaine, going so far as to move the filing cabinet from the spot in Donna and Dale’s house where it had permanently crushed the carpet to Elaine and Jeff’s new house across the yard.

Then Donna had passed on her role as coffee coordinator, making sure that her husband Dale and son Jeff took breaks in Elaine’s house, rather than sitting in their usual chairs around Donna’s dining room table.

Donna resisted the urge to pass on her muffin tins and recipes. “Only the worst of meddling mother-in-laws would complain about store-bought cookies now and then.”

At first, Donna made the most of her new-found free time. She took up with a whole group of newly retired women. For the first time since her kids were born, Donna could actually go along when she was invited to coffee get-togethers. These progressed to shopping days in the city and soon Donna had become part of a group of women who went on hiking and ski trips.

She’d been having such a good time, she didn’t really notice how much she’d been away from the farm until one evening in late July.

“Want to come along on a crop tour?” Dale had asked.

“Sorry, I can’t. I promised Jen I’d meet her at the lake to help her practice with her kayak before our river trip.”

62 country-guide.ca

“River trip?” Dale said. “I didn’t know you were going on a river trip. That’s too bad. You really should see these soybeans. They look great.”

“Soybeans! You planted soybeans?” Donna said.

Donna had meant to pass on her role to give Elaine a chance to get involved in the farm. She hadn’t meant to get so far removed from the operation that she didn’t even know what they had in the ground.

That very night, she’d called Jen to reschedule so she could go out with Dale and look at the crops.

“This is really nice,” Donna said, grateful that she’d taken time to spend the evening with her husband.

“Sure is! Best canola crop I’ve seen here in years!” Dale answered. Then he laughed. “I’m just kidding. I’m glad to spend some time out here with you too. We need to find more for you to do around here.”

But what? She couldn’t take back the jobs she’d given up.

An answer came during harvest.

“I can’t be out in this field all day,” Donna’s father-in-law Ed announced to his surprised son and grandson one morning, not long before lunch. “I have important phone calls to make. I don’t have a whole day for this project. I’ll get my business done and come back later.” Dale and Jeff were stunned.

But when they saw Ed limping heavily between the combine cab and the truck, they understood the real reason Ed needed a break, and also why he was so miserable about it. He was exhausted, and in pain.

SEPTEMBER 2014

acres

“Guess we worked Grandpa too long yesterday,” Jeff said.

“That hip must be giving him more trouble than he wants us to know,” Dale said. “We should have figured that out sooner.”

“We still wouldn’t have got him out of the cab before he was ready. Not without the Jaws of Life,” Jeff half-joked. “But now what do we do?”

Not wanting to offend Ed by implying that he wasn’t up to a full-time job, Dale and Jeff hadn’t tried very hard to find someone to work on the farm. One of the neighbours had promised to help out the year before, but when he’d sprained his ankle on the first day, he’d never come back. Other years, Elaine had put in some time helping during harvest, but with a fouryear old and a new baby, that wasn’t a great option.

With Dale swathing canola and Jeff running the grain cart and moving augers, they were stuck for someone to run the combine. Dale and Jeff put their heads together and called a few potential prospects, but they came up empty. Eventually Dale phoned home. “Donna, you’ve been spending time in town.

Do you know someone who could help out?”

“Let me give it some thought,” she’d said.

But instead of thinking about it, Donna had changed her clothes, packed a lunch and headed out to the field. And that’s how she became the Hanson’s fill-in combine operator.

Dale and Jeff weren’t convinced at first.

“You don’t even like driving my one-ton truck!”

Dale had said.

“You know there’s a lot of computers in a combine cab, right Mom?” Jeff asked.

It wasn’t something she’d done before. She had always been run off her feet with kids, meals and paperwork. But after challenging herself on snowshoes, in a kayak, with a photography class and even on a snowboard over the past two years, Donna was sure she was up to it.

“I’ve been running a computer since you went off to kindergarten,” she told her son. “Now step aside and let me into that cab.”

She had most of the controls figured out by lunchtime and was getting used to listening to the sound of the rotors. By one o’clock, she’d mastered the yield monitor and was even managing not to plug the combine when she was picking up the large awkward piles of canola the swather had left behind in spots around the field.

September 2014

With Dale swathing canola and Jeff running the grain cart and moving augers, they were stuck for someone to run the combine. They put their heads together, but eventually Dale phoned home.“Donna?”

“We’ll have to get your dad to quit leaving beaver huts all over the field if he’s going to get good help!” she told Jeff.

By two o’clock, Donna had already taught herself how to run the satellite radio, and Jeff left her alone in the cab so he could haul canola to the bins.

At four-thirty, Donna was unloading canola on the go, something Ed had never been comfortable doing.

“Nobody better tell Grandpa about this,” Jeff said.

But it was too late.

A well-rested Ed had just driven out from town.

He pulled up at the approach to the field where Dale and Jeff were standing outside, watching Donna turn at the end of a swath with finesse.

“Is that Donna in that cab?” Ed asked?

“Sure is,” Dale said, surprised at how proud he felt.

“She’s doing pretty well,” Jeff added, genuinely impressed.

“Huh,” Ed said. “Step out of you chair for 10 minutes and look what happens.”

Jeff and Dale exchanged looks. Would Ed be so offended he’d drive off into the sunset with his new girlfriend, and refuse to help at all? Even with Donna on board, could they get by without Ed? Then Ed’s cell phone rang.

“Yep… Yep… I thought that would happen,” Ed said into the phone. “Same time tomorrow would work good. I’ll catch you at this end.” He put his phone back in his pocket.

“Women. Donna wants to go out boating with some girlfriend or some darn thing. Guess I have to get back to work.”

With that, Ed got in his truck and drove to the edge of the field, to wait for his turn. CG Leeann Minogue is the editor of Grainews, a playwright and part of a family grain farm in southeastern Saskatchewan.

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