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CWB ready to compete and expecting to be profitable Experience } The single desk will soon be history but CEO Ian White says the CWB’s relationships with farmers and customers, plus government backing, will allow it to prosper

Second Albertan awarded Nuffield Scholarship POST-CWB } Ryan

Bonnett wants to show producers there is life after the monopoly by sheri monk af staff | airdrie

By Allan Dawson

staff | winnipeg

he Canadian Wheat Board will succeed in an open market, predicts president and CEO Ian White. “I’ve got no doubt we can run a viable business,” White said in a recent interview in his office. “We hope it will be profitable in its first year. That’s what we’re targeting.” The board always said the single desk was its main advantage, but White listed several other factors that he said would give it an edge, including its long relationship with Prairie farmers and international grain buyers, its pooling experience, and government-backed initial payments and borrowings With the board’s 69-year-old sales monopoly due to end Aug. 1, unless the courts overturn government legislation, how can it now claim it can benefit farmers in an open market? “There’s no question in my mind that there was value in the single desk when you had a statutory environment,” White said. “In a commercial environment that doesn’t mean that you can’t actually have an effective business that operates for farmers in a different way... I think that’s entirely possible as we’re attempting to show now.” Reaching grain-handling agreements with Western Canada’s country and port termi-

see CWB } page 6

STILL SHRINKING

Canadian Wheat Board president and CEO Ian White is confident the board can succeed in an open market because of its long relationship with farmers and grain customers. photo: allan dawson

f the three Nuffield Farming Scholarships awarded this year in Canada, two were earned by Albertans. Brenda Schoepp, (profiled in an earlier issue of AF) and Ryan Bonnett were both awarded the prestigious honour. Bonnett lives in Airdrie and works as a marketing adviser for Farmlink Marketing Solutions. He is originally from Gravelbourg, Saskatchewan, where his father still operates a grain farm. “A friend of mine had done this about four or five years ago and he had a pretty good experience and I had applied last year on his recommendation. I was a finalist, but didn’t get the nod and then this year I applied again and they decided to choose me,” he said. Bonnett will be studying grain marketing and production risk management strategies in other grain-producing countries of the world. Though he submitted the application with his proposed topic of learning before the federal government decided to end the CWB monopoly, Bonnett’s

see award } page 6

Canada Beef president sees herd decline } PAGE 49

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NEWS » INSIDE THIS WEEK

INSIDE » RURAL DEPOPULATION IS NOT A PROBLEM Laura Rance reports from a Foodgrains Bank tour in Ethiopia

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

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BRIEFS Frozen sauerkraut causes German motorway chaos REUTERS / Piles of sauerkraut tumbled out of a truck on a busy German motorway and quickly froze to the autobahn surface Feb. 7, causing a massive traffic jam near Frankfurt during the morning rush hour. A truck carrying hundreds of packages of the famous German pickled cabbage delicacy crashed into another vehicle before dawn near the western town of Friedberg near Frankfurt and scattered its contents across the motorway. With temperatures far below zero for the previous week, the sauerkraut froze almost instantly and created impassable obstacles, causing traffic to back up for 10 km. The motorway was completely shut down for four hours while authorities struggled to scrape the frozen sauerkraut away. According to the police report, the impact caused several plastic bags of sauerkraut to burst and spread across the A5 near Friedberg just north of Frankfurt. Once it had frozen in the sub-zero temperatures, it proved extremely adhesive. “The road had to be partially salted so that the sauerkraut could be taken off,” the police said in a statement. The accident happened when the sauerkrauttransport truck hit the back of a car being driven by a 34-year-old woman. The driver of another truck approaching from behind reportedly saw too late what had happened and hit the back of the sauerkraut truck.

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Outpouring of support for rancher fined for helping neighbour TECHNICALITY  The ticketing officer used an incorrect date on the summons BY SHERI MONK

AF STAFF | PINCHER CREEK

“We all haul back and forth all the time. It’s a community thing, a neighbourly thing.”

ill Homans fought the law and he won — sort of. The Pincher Creek rancher was ticketed on October 24 by the Department of Transportation for hauling calves to the Fort MacLeod Auction for a neighbour. “When all this transpired I had until January 18 to pay the ticket, or appear in court,” said Homans. Homans was pulled over at the auction market with 13 of his neighbour’s steers in the back of his own truck and trailer. His neighbour was also there with his own rig full of cattle. “A friend and neighbour couldn’t haul all his cattle in one load, so he asked if I could haul some for him. So sure — I mean, we all haul back and forth all the time. When I sold my calves this fall there was me and three other trailers hauling and when those guys sell, I will haul for them too. It’s a community thing, a neighbourly thing,” said Homans. The ticket he received was for the unlawful use of farm plates under the Alberta Traffic Safety Act. Homans decided he wasn’t going to fork over the $354 without a fight. His plight was brought to the media’s attention during the Zone 2 ABP meeting held at Fort MacLeod when the neighbour he was hauling for, Bob Westrop, proposed a resolution that ABP

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In Saskatchewan, producers are permitted to transport agricultural products for others if the weight of the vehicle does not exceed 16,400 kg. investigate the issue. Alberta Farmer published the story, and Homans learned he wasn’t going to have to fight the battle alone. “The phones rang steady for several weeks from all over the place with people phoning just to show their support. I had a lot of ranchers phone and offer financial assistance for legal fees and all kinds of things. It was unreal,” said Homans. L. Patrick Lanan, a lawyer from Claresholm, offered his services to Homans free of charge. “So he did. He represented me in court on the

18th, and it was quashed,” said Homans. Unfortunately, he got off on a technicality — the officer had written that Homans had to pay up or appear before January 18, 2011, instead of writing 2012. “There was no outcome really. The judge gave the department and the ticketing officer the option to rewrite the ticket and serve it to me in person if they so desired. I don’t know if it’s going to happen or not,” he said. Homans met with Evan Berger, Alberta agriculture

minister and also the Livingstone-MacLeod MLA, which is Homans’ riding. “We had a meeting. He knew exactly what I was talking about. He was going to talk with the minister of transportation and maybe open a door because it was more or less his department. That hasn’t happened yet,” he said. The Feeder Associations of Alberta passed a resolution to pursue the issue with the province, and ABP will decide whether to pursue the resolution passed at the Zone 2 meeting. In Saskatchewan, producers are permitted to transport agricultural products that are not their own — even for profit — provided the weight of the vehicle does not exceed 16,400 kg. Homans would like to see the law discussed and ultimately fixed. “I’ve never heard of it happening before, and that doesn’t mean it’s not going to happen again,” he said.

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Alberta Farmer

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Alberta Oat Growers Commission looking to become reality BREEDING  It’s hoped that an Alberta oat commission will be able to

pressure the federal government to bring an oat breeder to Lacombe

BY ALEXIS KIENLEN AF STAFF | EDMONTON

embers of the Prairie Oat Growers Association (POGA) are hoping to have the Alberta Oat Growers Commission (AOGC) up and running by April 2012. POGA president Bill Wilton told a meeting here last month that getting a Prairie-wide oat organization has taken several years, starting with a meeting in Ituna, Sask. in 1998. Selling memberships to farmers proved difficult. “A lot of people just don’t like selling memberships, and as a result, they struggled greatly in the first few years,” he said. The directors realized the only way to provide sustainable funding was to establish an oat checkoff, but commodity checkoffs are under provincial jurisdiction. “We started and discovered that each province had to go its own way,” Wilton said. In order to establish an oat growers commission in Alberta, the Alberta Agricultural Products Marketing Council needs assurance the proposed organization has made an effort to contact producers, who must vote in favour to establish the

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group. “We’re in that stage now and we have encouragement and believe that in 2012, we will get this done,” said Wilton. Once AOGC is established, they will be part of the activities of the POGA, which collaborates with the two existing provincial organizations. “Funds will stay in Alberta. They go to AOGC from the people who collect the funds, that being the people that you sell your oats to,” Wilton said. The checkoff is refundable. Funds will be used for research and development. The AOGC has created a business plan that encompasses 2011 to 2013 and hopes to have the first checkoff by May. Six growers from Alberta are on the steering committee for the proposed commission. They will serve on the interim board of directors once the AOGC is approved. Shawna Mathieson, executive director of POGA, said the goal in creating the Alberta commission is to have a united voice for the oat industry. Once AOGC is established, POGA will represent over 85 per cent of Canadian oat growers. Wilton hopes an Alberta oat commission will be able to pressure the federal government to bring an oat breeder to the Lacombe research station.

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“Oat breeders are employed by the federal government. The number is down to one in Western Canada, from five when I started with POGA six years ago,” said Wilton. “The positions have not been replaced.” The current oat breeder is located in Winnipeg, but also oversees a small breeding program at Lacombe. “It’s not as much of breeding program and it’s become more of an evaluation site. We think that’s wrong and we think there’s an opportunity there. There’s much more testing going on in Saskatchewan and Manitoba than there is in Alberta and part of the reason for that is funding,” said Mathieson. Wilton said POGA has turned $350,000 from producer funds into $2.1 million, thanks to support from federal government and industry support. “Once the Alberta organization is in place, we will have the names of everyone who delivers oats commercially in the three provinces,” said Wilton. “Think about the leverage that we can have for shared funding, when we can say to Agriculture Canada that we represent some 18,000 to 20,000 oat producers in Western Canada who are prepared to support a

“Funds will stay in Alberta. They go to AOGC from the people who collect the funds, that being the people that you sell your oats to.” BILL WILTON

research project with some of their own money, and they’re looking to their government to help with the project.”

Lost markets

POGA is currently doing studies as part of an equine feed oat study project. One of the partners is the University of Kentucky. “Since the early 1990s, we’ve lost over 60 per cent of the pony oat market in the U.S.,” said Mathieson. “We’re spending some major money in getting industry support to try to get oats back into that market.” The market was lost when the price of oats was higher than the price of corn, so many feed mills changed to use corn in

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their rations. Wheat middlings, a byproduct of wheat milling, have currently replaced both oats and corn. “This equine feed is a huge thing for oat producers,” said Wilton. “We have no advocate that sells our oats. We don’t have anybody selling our product, just people accepting orders.” Wilton estimated the oat market has lost about 700,000 tonnes of demand from the American equine industry. “The biggest reason is because we let it happen,” he said. “If we don’t stand up and do it ourselves, it’s not going to get done. We have to encourage people to use our oats, find out where the market has gone and how to correct it and get the oats down there.”

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

EDITOR Will Verboven Phone: 403-697-4703 Email: will.verboven@fbcpublishing.com

PRODUCTION director

In search of a new visionary agriculture policy

Shawna Gibson Email: shawna@fbcpublishing.com

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LITTLE RECOGNITION } The indications are that farm

policies will be as uninspired as usual

CIRCULATION manager Heather Anderson Email: heather@fbcpublishing.com

By will verboven

national ADVERTISING SALES James Shaw Phone: 416-231-1812 Fax: 416-233-4858 Email: jamesshaw@rogers.com

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Printed by Gazette Press, St. Albert, AB The Alberta Farmer Express is published 26 times a year by Farm Business Communications. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage for our publishing activities. Publications mail agreement number 40069240 Canadian Postmaster: Send address changes and undeliverable addresses (covers only) to Circulation Dept., P.O. Box 9800, Winnipeg, MB R3C 3K7

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hanks to new election legislation, Albertans will be faced with a provincial election in just a few months. It will be the first opportunity for voters to pass judgment on Premier Alison Redford and her plans for the future. It will also be the first opportunity for Danielle Smith, leader of the opposition Wildrose Party, to offer voters a real alternative to the present PC government. It could be one of the more contested elections in this province in the past 40 years. In the previous election, Alberta Farmer asked the main political parties to outline their agriculture policy. All responded and those that sent them in had their ag policies published. None was received from the NDP. To say the least the policies were rather uninspired, offering the usual platitudes and bromides about supporting the family farm and finding new markets. Only the Green party offered a very different vision. This time around Alberta Farmer will be taking a different approach with the political parties in the hope to find out what the they think about agriculture and its future in this province. We know that our readers have come to expect robust opinion on agriculture issues, and we intend to deliver those views during the upcoming election campaign. My own view is that the agriculture and food industry deserve the respect befitting the second-largest industry in the province. The suffocating and overbearing obsession with the energy industry, above all else, in this province, gets wearisome at times. It would seem in this upcoming election, agriculture and rural issues should be of higher interest and concern to the two

main political parties. In the past, because of traditional voting patterns favouring the PC party, voters in the countryside were considered captive voters and therefore could easily be taken for granted. Considering there was no real political alternative, that view became entrenched — until the rise of the Wildrose party. Rural voters have finally a real alternative. Sitting government PC MLAs know it. Remember that a Green Party of Alberta candidate came rather close to winning in the Lacombe riding in the last election — so upsets would seem quite feasible.

The farming and ranching industry is special and different Over the past three years, Wildrose has made truckloads of political hay out of the government’s land-use legislation. So much so that the government has appointed a ministerial committee to try and derail the issue before the next election. That may or may not work, so Wildrose might consider beefing up its ag policy to at least make it look different from the PC policy. Past Liberal ag policy seemed to suffer from their city-centric naivete, one hopes it might become more enlightened towards reality this time. NDP policy didn’t seem to exist last time around, so expectations are low. The Green Party of Alberta has had legal difficulties so it may not be around at this election, although it may resurface under another name. Unlike some of their other policy plat-

forms, most mainstream political parties tend not to be very specific when it comes to agriculture. The only exception was the Canadian Wheat Board, but that is now off the table. My suspicion is that both the PC and Wildrose ag policies will be virtually identical — that is, bland and unimaginative. I expect the political brain trust of both parties figure they can influence rural voter attitudes better on other issues, such as land use, electric rates and social issues. I like to think that in addition to those issues, those in the ag industry would appreciate some thought be given to their place in the economy — ask if political parties really care. I have advocated giving the farming and ranching industry its rightful place in the economic development and historical tradition of this province by designating it a Heritage Industry. It would give agriculture a “distinct society” status, so to speak, and I believe city folks would not begrudge the designation. It would provide a basis to land-use issues, economic development, ecological services, food production and security, land conservation and a host of related issues. It’s not a new concept — agriculture is treated as a heritage industry with special rights in Norway. We even have a precedent of sorts in this country when it comes to special consideration on land-related issues and that is the rights of First Nations. The farming and ranching industry is special and different, and the political party willing to recognize that would probably be viewed more positively, even visionary, by rural voters. Its not a radical concept, but it is a positive political opportunity in which everyone wins. I guess we shall see as the upcoming campaign unfolds.

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www.albertafarmexpress.ca or email: subscription@fbcpublishing.com 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 Ave., Wpg., MB R3H 0H1 Occasionally we make our list of subscribers available to other reputable firms whose products and services might be of interest to you. If you would prefer not to receive such offers, please contact us at the address in the preceding paragraph, or call 1-800-665-0502. The editors and journalists who write, contribute and provide opinions to Alberta Farmer Express and Farm Business Communications attempt to provide accurate and useful opinions, information and analysis. However, the editors, journalists and Alberta Farmer Express and Farm Business Communications, cannot and do not guarantee the accuracy of the information contained in this publication and the editors as well as Alberta Farmer Express 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.

It’s today’s price for delivery in the future Market signals } If the futures market is functioning properly, it tells you precisely nothing

By John Morriss editorial director

ow that the Canadian Wheat Board is losing its monopoly, the Alberta Government, which for decades has been saying that farmers would be better off by doing their own marketing, now seems a bit more cautious. In a recent release, an Alberta Government risk-management analyst warned that “producers that choose not to use pooling strategies in order to capture higher pricing opportunities may also be exposed to greater downside risks.” Suggesting that farmers consider futures and options, the release says “The potential benefits from these more volatile markets can be measured using simulation and traditional option pricing theories that calculate the actual probability of achieving higher target prices resulting from increased volatility.”

We’re not just sure what that means, but if it means farmers can increase their returns by using futures, it’s not correct. There are several misconceptions about futures, such as the often-heard phrase “Listen to what the futures market is telling you.” If the futures market is functioning properly, it tells you precisely nothing. Futures markets were invented specifically because it is impossible to tell the future. Grain merchants needed to protect themselves against changes in price between the time they bought grain from farmers and the time they delivered it to a customer. Futures markets determine today’s price for delivery in the future, not the future price. Another misconception is that farmers can “hedge” using futures. Perhaps it’s just terminology, but that’s wrong too. A “hedge” is as described above — an offsetting cash/futures sale by a grain merchant who makes two transactions — buying the grain from

the farmer, and selling it to a customer. Farmers only make one transaction — the sale. Unlike grain merchants, farmers are always long, and therefore they are always speculating. They use futures to lock in a price at a different time than they physically deliver the grain, which may well be a good idea, such as to lock in a profit. But that’s only buying peace of mind, or buying insurance to keep the banker happy. It’s speculating that today’s price is better than a future price, but if the futures market is functioning properly, there’s a 50-50 chance of the price being higher or lower when it’s time to deliver. If a farmer follows a consistent sales pattern — every month, every quarter, whatever, but consistently over a few years, his or her price will end up exactly the same as any other strategy. If using futures is part of that consistent strategy, say by locking in a price for part of the crop before it’s harvested, then the price will actually be slightly lower

There are several misconceptions about futures, such as the often-heard phrase “Listen to what the futures market is telling you.”

by the amount of the commission fees. Futures have their place, and part of being a good marketer can be using them directly or indirectly to lock in a profit. That’s not the same as getting a higher price. If there are farmers who can do consistently do that by using futures, they should forget about all that expense and worry of planting a crop and simply trade futures instead.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Agriculture takes three of five “useless” college degrees Response } U.S. agricultural college deans fire back, saying agriculture isn’t just about farming Internet news site Yahoo Education recently published an article titled “College Majors that are Useless.” Agriculture topped the list, followed by fashion design, theatre, animal science and horticulture. The Yahoo article’s rationale was largely based on the projected continuing decline in the numbers of farms in the U.S. “In fact, the U.S. Department of Labor projects 64,000 fewer jobs in this field over the next seven years,” the article said. U.S. agriculture colleges shot back, with the deans of agriculture at Purdue University, the University of Illinois, the Ohio State University and Iowa State University issuing a joint press release. Excerpts follow:

• T he Yahoo Education article equated “agriculture” with “farm management.” Farm management is an important field of study, but defining agriculture only as farm management is much too narrow. Completely ignored are other important areas under the umbrella of “agriculture” including food science, plant science, and soil science, where the Bureau of Labor Statistics report predicts job growth should be faster than the average for all occupations, and where job opportunities are expected to be good over the next decade, particularly in food science and technology and in agronomy. And, of course, the “agriculture” umbrella also covers agricultural economics, agricultural engineering, animal sciences, natural resource and environmental sciences, and agricultural education, to name a few. • V ery low unemployment rates. Recent online posts cited a just-released report by the Georgetown University Center on Education and the Workforce which found agriculture and natural resources to be among the fields with the lowest unemployment rates — lower than business, engineering, law, and several others. • ( A U.S. Department of Agriculture report) projects that 53,500 qualified graduates will be available for about 54,400 jobs annually in the agricultural and food systems, renewable energy and the environment. About 55 per cent of those graduates (29,300) are expected to earn degrees from colleges of agriculture and life sciences, forestry and natural resources, and veterinary medicine. • T he director of the Collegiate Employment Research Institute at Michigan State University recently wrote, “No sector appears stronger than agriculture/food processing with an increase in hires of approximately 14 per cent.”

• T he Midwest area, once dubbed the “Rust Belt,” is becoming the breeding ground for new “green” agriculture-related jobs as the agriculture-driven industry is poised to expand into new markets such as health, specialty crops, biofuels and bio-based products. • T he article completely misses an important trend of interest in small-scale, local food production and those who want to become part of agriculture by launching these types of businesses. The Bureau of Labor Statistics report from which (the author) took some of his numbers even points out that “…an increasing number of small-scale farmers have developed successful market niches that involve personalized, direct contact with their customers. Many are finding opportunities in horticulture and organic food production, which are among the fastest-growing segments of agriculture.” • T he success of our graduates is also a testament to the usefulness of agricultural majors. Students majoring in “agriculture” study farm management, horticulture, and animal sciences — as well as agricultural and food business, food science, biological engineering, plant breeding and genetics, wildlife biology and forestry, biochemistry, microbiology, entomology, and other exciting, science-based areas. Our graduates take jobs in a wide variety of industries, pursue research careers, and work in public service in the U.S. and internationally. Across all four of our agricultural colleges, total enrolment is the highest in 30-plus years, applications are going up and, most importantly, at the end of their undergraduate careers, our students are facing excellent job or graduate program opportunities. Placement rates are higher than 90 per cent, with 16-26 per cent of that total choosing to pursue advanced degrees and professional education.

U.S. wheat organizations want access to Canadian system A January 1 press release issued by U.S. Wheat Associates

ignalling a desire for more market efficiency, the boards of directors of U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) each passed a resolution on Jan. 29 calling for an open border with Canada that provides reciprocal bilateral wheat trade. Under a December 2011 law, which still faces some legal challenges, the Canadian Wheat Board (CWB) will lose its grain-marketing

monopoly Aug. 1, allowing western Canadian farmers to sell their wheat and barley in the open market. The United States is routinely Canada’s top wheat export market, but Canada’s open market changes could affect the ways wheat moves into the United States. “We believe that in an open market, some Canadian wheat will move to U.S. country elevators near the border,” said Gordon Stoner, a Montana wheat farmer who serves as the head of the USW/NAWG Joint International Trade Policy Committee.

“Our wheat farmers are ready to accept that outcome as long as we similarly have a fair opportunity to deliver into the Canadian handling system. This resolution gives NAWG and USW the authority to work with farmers, the grain trade and government agencies here and in Canada to give U.S. farmers reciprocal access to the Canadian market. We seek an open border — in both directions.” Stoner said some key issues must be resolved before U.S. farmers could sell their wheat to cash markets in Canada, such as Canada’s

narrow wheat class variety eligibility lists that do not allow most U.S. varieties to be marketed in the country as top-grade milling wheat. “Ultimately, open trade across the border will be good for both Canadian and U.S. wheat farmers by adding efficiency and allowing Canadian and U.S. wheat handlers, users and growers to compete on the basis of quality and location,” Stoner said. “At the same time, with the CWB monopoly gone, the international market that determines our prices will become more transparent, fair and efficient.”

OFF THE FRONT

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

CWB  Continued from page 1 nal operators is key to the board’s success, and White said deals are expected soon. Given the uncertainty of the new open market, he predicted many farmers will pool some of their grain through the board. Meanwhile, grain companies wanting to maximize throughput will handle grain for the board, said White, adding he is seeking handling deals will all the companies so farmers anywhere in the West can easily sell to the board.

Short- and long-term pools

The board will announce details of its wheat-, durum- and barley-marketing options this month. There will be short- and long-term pools, contracts linked to future prices and cash prices, White said. However, single-desk supporters aren’t convinced the future will be rosy. The board might work out suitable handling arrangements in the short term, but over time its grain company competitors will grab market share by offering less attractive terms to the board, predicts former wheat board director and Kane farmer Bill Toews. “In the long run, the relationship

(between the board and farmers) will get poorer because they just don’t have the leverage to provide something better than what the (grain) companies will provide,” he said. The board has professional, competent staff, including White, who will do their utmost to make a voluntary board succeed, said Toews, but added the deck is stacked against it. Not so, according to White. Government-guaranteed borrowings and initial payments for five years, plus working capital from the board’s contingency fund, will help a voluntary board get on its feet. “So it’s not as if we’re just being cut loose to survive without any advantages,” White said. “We have the advantage of a period of transition.” Using the board’s contingency fund of up to $200 million to bankroll the new board is a sore point with Toews and seven other former directors. They contend the fund, along with other board assets, including its Winnipeg office and 3,200 rail cars, were earned through the single desk

and belong to farmers. The government should distribute those assets to farmers and then use government money to kick start the new voluntary board, he said. “It’s the equivalent of a hostile takeover of the single desk and its assets,” Toews said. “It’s just wrong.” Eventually the wheat board, which is now a government agency, will be privatized and farmers’ assets will be transferred to an existing grain company that buys the board or the shareholders of a new company, said Toews, adding he doubts the board will morph into a farmer-owned cooperative.

Elevators main source

The board wants to work with producer car shippers and short line railways, but expects most of its grain will be shipped through elevators, White said. “I think the selling feature that we have is we have a great amount of experience and knowledge and expertise in marketing and running pools,” White said. Despite the increased risk of pools exposed to an open market,

the board expects to top up initial payments using tools such as options, White said. Farmers will be contracted to deliver specific volumes to the pools so the board will know how much grain it has to sell, he said. The board is also talking to its customers. “We have a very good understanding of what each of them wants to do,” White said. The board’s sales offices in Beijing and Tokyo, which service customers throughout Asia, will remain open. The board has laid off 23 staff since the Marketing Freedom for Grain Farmers Act became law in December. A few others have left on their own, and more staff cuts are looming, said White, adding the board is working to keep key employees and, so far, hasn’t lost any sales people. “A lot of our marketing people are long-serving people who... have a lot of allegiance to this organization,” he said. “We expect to be showing them a good business plan going forward that they want to be part of. “We think we can create a

”We hope it will be profitable in its first year. That’s what we’re targeting.” IAN WHITE

fairly exciting environment for them here that they’ll want to stay.” Severance and pension costs are covered by the federal government, as will be wind-up costs should the board not be privatized after four years, he said. White said it’s too early to tell if the pending open market has eroded the prices for Canadian grain. “I think there will be more competition in some markets for the Canadian product,” he said. “The question will be whether that translates into lower prices and I don’t think we can tell that yet.”

AWARD  continued from page 1

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research may be of even more value now. Since 1947, recipients of the scholarship have been shaping the world of agriculture by using the scholarship to produce indepth studies on topics important to food production. Recipients must be able to take time off to travel and Bonnett, 29 years old, has the support of his employer, who also stands to benefit from the research. At $15,000, the scholarship only covers a small portion of the $50,000 required to fulfil the program’s mandate. Bonnett will be seeking support from a number of sources. The travel itinerary is not light — scholarship recipients will become agricultural globetrotters. “Some of the places I am going to go to are definitely Australia, parts of the European Union and some parts within northern Africa, possibly Egypt to see how they do things. Maybe I’ll wait until there’s a little less political unrest there though,” Bonnett said. Bonnett’s mission will be to learn about other systems in an effort to help create tools for producers in Canada who must learn to market grain in new and innovative ways. “I would like to find successful marketers who have been marketing grain outside of a wheat board system. I would like to find out what they do, and how they do it. And also I would like to do some research on finding some dos and don’t for farmers out in Western Canada, to try and learn from the past experiences of other farmers and show it’s not as big a change or as terrible a thing as some people are trying to make it out to be.”

“I would like to do some research on finding some dos and don’t for farmers out in Western Canada.” RYAN BONNETT

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ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Sponsored by your local AGROTAIN® nitrogen stabilizer representative

Nitrogen Miser Get the N out of the tanks By Earl Greenhough Earl Greenhough

China was already expected to import more canola meal this year.

China bans imports of Indian canola meal GREEN DYE  Some cargoes are contaminated with a product used to colour sacks BY NIU SHUPING AND KEN WILLS BEIJING/REUTERS

hina will boost imports of rapeseed and rapeseed meal from Canada, said traders after Beijing banned Indian meal after tests showed it contained a toxic chemical. If China buys more canola, from Canada, the world’s top exporter, it could firm ICE canola prices, which have been rising for the past two weeks in anticipation of larger imports. China imported Indian oilseeds worth $161 million in 2011 before halting purchases late last year after tests showed some cargoes were contaminated with malachite green, a dye widely used in India to brand grain sacks. China bans malachite green from ingredients used to produce animal feed. Traders said cargoes of Indian rapeseed meal loaded after Jan. 1 would be denied entry to China. “We have been told to stop imports until the two countries have resolved the issue,” said one trader with Guangdong Junjie Agriculture Trade Co. Ltd., a major buyer of Indian meal. “We don’t expect the ban will have much impact on supplies. China has been buying from Canada and meal supplies from domestic crushers have also increased, which would fill the gap,” the trader added. A rapeseed meal trader with Guangxi Jiahe Grains and Oils Co. Ltd. also said there were few Indian supplies being unloaded now, adding: “We will look into Canadian meal to see if quotations are attractive. But meal from domestic crushers is ample and prices are cheap.” Indian grain exporters said they were working closely with Chinese officials to lift the ban. A Chinese inspection team is likely to visit India in March, exporters said, and China’s quarantine bureau said on its website it had informed India of the steps it had to take for the ban to be lifted. “We have already issued an advisory note to all extraction plants asking them not to buy rapeseed or rapeseed cake packed in jute bags with green identification marks,” said B.V. Mehta, executive director of the Mumbai-based oilseed process-

ing body, the Solvent Extractors’ Association of India.

Canadian imports to rise

Indian rapeseed meal tends to suffer from quality issues, but it is cheaper than both Canadian and domestic Chinese supplies. China imported a total of 1.2 million tonnes of rapeseed meal in 2011, out of which just over half was from India. The 648,386 tonnes imported from India represented an increase of 84 per cent on the year, while imports from Canada dropped 10 per cent to 671,450 tonnes. Traders say they expect China to increase canola imports by nearly 40 per cent in 2011-12 due to expanded crushing capacity. China will harvest its own rapeseed crop in May and June, and its domestic harvest last year was about 13 million tonnes. Lu Yun, an analyst with Shanghai JC Intelligence Co. Ltd., said even before Indian imports were banned, China was more likely to increase canola imports from Canada, because it meant higher profit margins for crushers. “Even without the ban, we expect imports of rapeseed meal (from India) will decrease sharply this year,” said Lu. “China has increased imports of canola from Canada, which had given pretty good margins for crushers earlier.” Rapeseed imports in the first half of the year would increase significantly, with monthly imports hitting as much as 300,000 tonnes, said Lu. One Canadian grain industry official said Chinese demand for canola has been robust since autumn and it may be difficult to attribute any added boost to the ban on Indian meal. China’s canola seed imports are limited to a handful of crushing plants by its restrictions on Canadian canola with the fungal disease blackleg. China has no similar restrictions on canola meal, which is a byproduct of oilseed crushing that is mainly used to feed animals. “China has been buying Canadian canola anyway, reasonably regularly, so (blackleg restrictions) seem to be an issue they pull out when it’s advantageous to them,” said Ken Ball, a futures and options broker at Union Securities in Winnipeg.

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Rural realtors see value in environmental farm plans Liability } An EFP can reduce buyers’ concerns, and potentially mean higher sales value ship practices when evaluating and marketing rural properties. Landowners who are good stewards deserve to benefit from their efforts at this stage.”

By Meristem Media

ven though they’re not making any more, land may not be a good investment if environmental liability is part of the purchase package. Environmental farm plans (EFPs) can help determine how real estate values are affected by environmental issues and related management, say some Alberta realtors. There is growing awareness in the rural real estate industry about the environmental status of agricultural holdings, says Gemma Beierback, town and country manager for the Calgary Real Estate Board (CREB). Realtors becoming aware of EFPs are considering their value in the course of listing and selling rural real estate. “Environmental factors are not only an important part of the value of an agricultural holding, they are a potential liability issue,” says Beierback. “There’s no question today there is a rising focus on these factors. “A tool such as EFP that can help document and assess the environmental soundness of a holding can offer a lot of value. It’s something that warrants a closer look at. It’s something our organization is taking a closer look at. It would appear to have value for both sellers and buyers, by providing clarity that may mitigate risk and make a holding more attractive for potential sale.”

Property value factor

Beierback sees having an EFP in place as potentially having value. “There’s good potential that will get more and more recognized by the marketplace, particularly as more realtors become familiar with EFP.” Landowners with an EFP may find their property is potentially more attractive to a buyer, says Beierback. Environmental considerations and a commitment to environmental stewardship are gaining focus and value in the marketplace. Even if they don’t plan to sell they have the opportunity to enhance their property and its value through the EFP process. An EFP from a real estate perspective can be an important part of the due-diligence process, she says. “I’ve always encouraged both realtors that I’m instructing and clients when I was practising real estate to provide as much information as you can up front, because it facilitates the process. If you answer more questions before a buyer asks, then you can get further down that interest road and potentially override some roadblocks.” Beierback remembers the first time she heard about EFP when dealing with a client. “I remember being really impressed with the depth and breadth of the workbook document. It said to me, ‘OK these people have really thought through and put on paper where they are at with environmental stewardship.’ “The document gives the buyer a lot of knowledge and confidence.”

What’s under that snow? An EFP can assure potential purchasers that there are no surprises. ©istock Interest growing

The EFP tool and process has more than a decade-long history in Alberta. It is used by farmers and ranchers to support awareness, assessment and planning for environmental stewardship on their operations. EFP is based on a process that assesses every aspect of the operation from an environmental stewardship perspective and guides the user toward a plan for implementing beneficial management practices. Producers do this on their own with support resources available to them.

Perry Phillips knows this topic from several perspectives. He’s worked with the EFP initiative for several years and today, through Alberta Agriculture and Rural Development, is the program co-ordinator for EFP. He is also a farmer himself and has real estate experience as an agent and trainer. Olds College has been involved in real estate training for many years and, Phillips has helped to design the “Program for Excellence in Rural Real Estate.” Through that effort he is working with Beierback and others to increase awareness of EFP in

February 27 & 28, 2012

the real estate industry. Interest is increasing with a request for training on EFP coming from the industry recently. “EFP has become a topic of interest in real estate for several years now,” says Phillips. “Efforts by a number of realtors, organizations such as CREB and the training programs are now taking that to another level, driven by the growing focus on environmental stewardship the real estate industry is experiencing.” From his perspective, Phillips says this is welcomed. “The role of EFP has always been to provide farmers and ranchers with a tool that supports their stewardship efforts. One of the benefits of that is enhancing their operation from a property-value angle. We see the opportunity here as a natural fit. “Ideally, we would like to see realtors understanding the purpose of an EFP and considering good environmental steward-

More information on EFPs in Alberta at www.albertaefp.com Meristem Media articles at www.meristem.com.

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ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

U.S. farmers, ranchers still out $100 million after MF Global collapse PROTECTION  CME says it will launch a fund

to shield farmers from future flame outs BY K.T. ARASU

CHICAGO / REUTERS

.S. farmers and ranchers who had accounts with failed broker MF Global have got back the bulk of their money, but are still owed about $100 million. The $100 million is believed to be part of MF Global customers’ $1.2 billion in funds that remain missing after the chaotic flameout of the broker. Thousands of MF Global clients have received about 70 per cent of their money held in segregated accounts since the broker filed for bankruptcy Oct. 31. The Chicago Mercantile Exchange says on March 1 it will launch a $100-million fund to protect farmers and ranchers who used grains and livestock futures markets operated by the exchange against similar fiascos in the future. “We based the fund size on what th ey ar e s ti l l m i s s i n g following MF Global,” said exchange spokesman Michael Shore. “If a similar event were to occur, the Protection Fund would get each eligible participant much closer to whole — up to $25,000 for individual farmers.” Farmers and ranchers, still tending raw wounds from the bankruptcy, said the $100-million plan amounted to “window dressing.”

“It seems like a good business decision to restore confidence in the company, but it’s woefully inadequate,” said Dean Tofteland, a Minnesota corn and soybean farmer who has retrieved 72 per cent of the $253,000 held in his MF Global account. He said he would get back just over $2,000 from the CME fund based on a hypothetical case in which $1.2 billion in customer funds are missing — a scenario similar to MF Global’s current situation. Many Midwest farmers had to delay purchases of seed and equipment in the days after the bankruptcy. Joe Ocrant, an investment adviser whose clients include feedyard operators, said the fund was well short of what the “big hedgers” need. “Some of my bigger clients hedge up to $1 million,” he

“It seems like a good business decision to restore confidence in the company, but it’s woefully inadequate.” DEAN TOFTELAND MINNESOTA CORN AND SOYBEAN FARMER

WHAT’S UP Send agriculture-related meeting and event announcements to: will.verboven@fbcpublishing.com February 15/17: Alberta Beef Industry Conference, Capri Hotel, Red Deer. Call: ACFA 403-250-2509 February 15/17: Western Barley Growers Association AGM, Deerfoot Inn, Calgary. Call: WBGA 403-912-3998 February 16: Alberta Soft Wheat Producers Comm AGM, Legion Hall 9:00 am, Vauxhall. Call: Elizabeth 403-345-6550 February 16: Battle River Research Group AGM, Community Hall 4:30 pm, Halkirk. Call: Alvin 866-8286774 February 16: Farm to Finish Ranching Opportunities, Olds College, Olds. Call: Meaghan 403596-6084 February 16: Canadian Association of Farm Advisors, TBA, Red Deer. Call: Liz 877-474-2871 February 16: What’s the Buzz, Sawridge Inn 9:00 am, Peace River. Call: Sam 780-643-0702 February 17: Gateway Research Org AGM, Hazel Bluff Hall 9:00 am, Westlock. Call: CRO 780-342-4546

February 19: National Pork Biosecurity Workshop, Black Knight Inn 6:00 pm, Red Deer. Call: Audrey 780-469-8982 February 21: Woodlot/Agroforestry Opportunities, Webster Hall 6:00 pm, Grande Prairie. Call: Jill 780567-5585 February 22: Applying Genomics on the Ranch, Pomeroy Inn 4:00 pm, Grimshaw. Call: Morgan 780835-6799 February 22/23: Precision Ag: the next generation, Deerfoot Inn, Calgary. Call: ARECA 780-416-6046 February 22: What’s the Buzz, CDC North 9:00 am, Edmonton. Call: Sam 780-643-0702 February 22: Woodlot/Agroforestry Opportunities, Goodfare Hall 6:00 pm, Grande Prairie. Call: Jill 780567-5585 February 28: Crop Production Workshop, Community Hall 9:00 am, Killam. Call: Alvin 866-8286774 February 28: What’s the Buzz, St. Lina Hall 9:00 am, St. Paul. Call: Sam 780-643-0702

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NEWS » Markets

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

China to buy more canola meal

Russia says no limit on export

During the Canadian government trade mission to China last week, Agriculture Minister Gerry Ritz announced that Chinese feed company Tongwei Co. Ltd. intends to increase its purchase of Canadian canola meal by up to $240 million annually by 2015. Using funding provided through the Agricultural Flexibility Fund, the Canola Council of Canada has been working with Chinese dairy and aquaculture processing companies to demonstrate the superior quality and nutritional benefits of canola meal.

Russia’s government sees no need for grain export restrictions in April and its raised grain export forecast for 2011-12 by 12.5 per cent, it said on its website Feb. 3, citing Russia’s first deputy prime minister, Viktor Zubkov. “Given a revised harvest figure of 93.9 million tonnes... the forecast for grain exports in the 201112 crop year has been raised to 27 million tonnes,” Zubkov was quoted as saying. Earlier wheat prices rose on speculation that Russia would limit exports because of concerns that hard frosts could damage Black Sea crops. — Reuters

StatsCan’s data offer more questions than answers South America } Condition of Brazil and Argentina crops grabs

much of the recent attention in grain markets By dwayne klassen

anola futures on the ICE Futures Canada trading platform generally saw small gains during the week ended Feb. 3. Strength was related to the estimates reducing the size of the soybean crops in South America, as well as to steady demand from the export and domestic sectors. Continued ideas of a drought in Western Canada this spring helped to influence the price advances in the more deferred contracts. The Canadian dollar’s push above parity with the U.S. currency helped to contain the price strength in canola, as did the steady movement of canola into cash position by farmers. Overhead technical resistance also restricted the upside in canola. Statistics Canada’s stocks in all positions report had little overall impact on the price trend in canola. In fact, the numbers raised more questions than provided answers. The new milling wheat, durum and barley contracts being offered by the ICE Futures Canada platform did see some price action during the week, but volume totals continue to be on the extremely light side of the coin. Milling wheat experienced most of the action, with commercial spreading the main feature. Western barley futures on the ICE Futures Canada platform remained dormant in non-existent activity. Cash bids for barley in Western Canada held steady at firm levels.

South American dryness

Chicago Board of Trade (CBOT) soybean futures trended upward during the period ended Feb. 3. End-of-month short covering helped to influence some of the price gains in soybeans. Additional support was derived from confirmation by private forecasters that soybean yields in Brazil and Argentina have been reduced by the dry growing conditions there. Some of the updated estimates from the private sector are now pegging soybean output in Brazil at 70 million tonnes, which is down from the most recent U.S. Department of Agriculture projection of 74 million. The private sector is now pegging Argentina’s soybean crop at 46.5 million tonnes, four million below the latest USDA forecast. The downswing in the value of the U.S. dollar and talk of fresh Chinese demand for U.S. soybeans also helped to keep values firm. The taking of profits at the highs, and some overhead technical resistance tempered some of the strength seen in soybeans. CBOT corn futures were higher, with the deferred contracts experiencing the better gains. The continued shortage of

corn for export from the Texas Gulf region helped to generate some of the support. Some spillover from the advances seen in the U.S. wheat market also underpinned values. News from South America also was considered friendly for corn values. The private sector has left its corn production estimates for Brazil to around the 61-million-tonne level, but lowered its Argentine corn production projection to 22.5 million tonnes. In January, the USDA pegged corn output in Argentina at 26 million tonnes. Wheat futures at the CBOT, Kansas City and Minneapolis exchanges posted small to modest advances during the week, with some of the upward momentum associated with the extremely cold temperatures that moved into the winter wheat-growing areas of the Black Sea region. Continued indications that Russia would curb its grain export program helped to generate support. Gains in wheat were also spurred on by the buying back of short positions

by fund accounts, who are still holding a sizable short position in wheat. The upside was restricted by the fact that global wheat supplies remain large.

Tight pea supplies

The Statistics Canada grain stocks in all positions report held few surprises, with the exception being for peas. The numbers confirmed the record export and domestic crush pace for canola. Usage of wheat and barley in the feed sector in Western Canada was also on par with industry expectations. Peas on farm and in commercial storage as of Dec. 31, 2011 were an extremely tight 897,000 tonnes. Last year at the same time, pea supplies in Canada were an ample 2.465 million tonnes. The tight pea supply situation was associated with the fact that seeded area in 2011 was reduced by the excess moisture situation, and the poor growing conditions during the summer, which negatively impacted production of the crop.

For three-times-daily market reports from Resource News International, visit “ICE Futures Canada updates” at www.albertafarmexpress.ca.

The companies that ship the peas also front-loaded their export programs because of the potential supply shortage through to the end of December, creating the unexpectedly low stocks situation. There are ideas that farmers who are holding on to top-quality peas should benefit price-wise from this shortage, but market participants caution that in the second half of the crop year, the export program is fairly lacklustre. However, the accuracy of the production forecasts being used by the government agency is where market participants are starting to raise questions. There is concern that the agency’s production estimates going back to 2010 are not correct, with the numbers plugged in for feed, waste and dockage also wrong. Now, by plugging these numbers into the 2011 season, the inaccuracy factor only is amplified. One has to remember that while Statistics Canada tries its best to rationalize its numbers, everything still comes down to the interview with farmers, who I am sure provide nothing but the most up-to-date information.

Dwayne Klassen writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Retire redundant regulations rapidly TOO MANY RULES  Business lobby group says farmers overly regulated by rules that benefit no one BY ALEX BINKLEY

AF CONTRIBUTOR / OTTAWA

oo many government farm regulations waste time and do nothing to improve health and safety of consumers, says a report from the Canadian Federation of Independent Business. Farmers in Canada are hardest hit by regulations, an alphabet soup of rules including land-use restrictions, product labelling, food safety, border inspection, pesticides and data collection, said Virginia Labbie, CFIB’s senior policy analyst for agribusiness. The CFIB study found that “72 per cent of farmers want all levels of government to place a higher priority on cutting red tape, more than on any other measure, to help them compete and remain in business,” she said. Tax relief came in next at 68 per cent.

“With governments in the midst of finalizing a plan to support the future of agriculture in Canada, taking immediate action to reduce the regulatory burden will allow farmers to continue to provide consumers with highquality, homegrown food,” said Labbie. Farm groups endorsed the call for fewer regulations. Farmers “face a myriad of regulations each day and any effort to streamline or reduce redundancy will help their bottom line,” said Ron Bonnett, president of the Canadian Federation of Agriculture. The process for developing regulations needs to include a “realistic assessment of what the regulations are supposed to accomplish,” he said, adding that too often regulations follow a token consultation with farmers. Then there’s the irksome

A jump in revenue from slightly higher grain traffic in the last three months of 2011 helped bolster a beleaguered Canadian Pacific Railway in its fourth fiscal quarter (Q4). CP on Jan. 26 booked net income of $221 million on total revenues of $1.408 billion for its quarter ending Dec. 31, up from $186 million on $1.294 billion in the year-earlier period. During the quarter, Calgary-based CP moved about 121,000 carloads of grain, up three per cent from 118,000 in the yearearlier Q4 — but it posted total grain revenue of $323 million, up eight per cent from $299 million in the previous Q4, for revenue per carload of $2,669, compared to $2,534 a year earlier. “During the fourth quarter we delivered record asset velocity, a direct link to better service, positioning us for a lower operating ratio,” CP CEO Fred Green said in a release. CP posted a slightly lower profit for the full year, booking $570 million in net income on $5.177 billion in revenues, down from $651 million on $4.981 billion in fiscal 2010. CP’s total revenues from grain traffic were down three per cent for the year at $1.1 billion, compared to $1.135 billion in fiscal 2010. Grain carloads were down four per cent at 450,000, for revenue per carload of $2,444, up one per cent.

your

STAFF

ElEvatE

Grain revenue jumps for CP Rail’s Q4

requirement to keep supplying government with information and data that’s already been submitted, he noted. Farm groups have to collaborate on “developing an inventory of unnecessary and redundant regulations to present to the government,” said Bob Friesen, president of FNA-STAG. There’s plenty of scope for reduction in pesticide and fertilizer regulations, he added. And then there are issues like efficacy testing that should be left to the market. “If a product doesn’t work, farmers won’t buy it,” he said. Governments should focus on the safety of the end product and not the process that produces it, said Richard Phillips, executive director of the Grain Growers of Canada. Agriculture Minister Gerry Ritz said the government has adopted the proposal from the

The Canadian Federation of Independent Business wants government to cut the red tape.

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Red Tape Reduction Commission to require “the removal of at least one regulation each time a new one is introduced that imposes administrative burden on business.” His department, the Canadian Food Inspection Agency and the Canadian Grain Commission are working to streamline regulations, he said, pointing to “a more flexible seed variety registration” as an example. Canada is working with the U.S. through the Regulatory Co-operation Council to make the pesticide registration process more efficient and timely, he added. CFIB would like the auditor general to report annually on the state of government regulation. “We need to make a review of regulations a permanent feature on the political menu,” said Labbie.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Dairy farmers launch new supply management defence IMPORTS ALLOWED  Dairy Farmers of Canada says supply management

doesn’t stand in the way of trade agreements

eggs and poultry are used to a certain level of criticism, especially in recent years as the system has come under fire from Canada’s current and potential trading partners, for the tariff walls it creates against imports. More recently, the system has come up as a possible sticking point in free trade negotiations with the European Union, and in Canada’s efforts to join talks with the Trans-Pacific Partnership — currently a nine-country AsiaPacific regional trade pact, now being discussed among members including Australia, New Zealand, Malaysia and Vietnam. Export-minded Canadian business groups have criticized the government’s support for supply management as potentially jeopardizing their access to overseas markets.

STAFF

With their system of revenue under renewed jabs from various angles, Canada’s dairy farmers have compiled their retorts into a new online campaign. Dairy Farmers of Canada on Feb. 1 launched a website dubbed YourMilk.ca, which organizes the case for the country’s dairy industry into three sections: one on the industry’s benefits to the public, producers and processors, another on “busting myths” and a third on “the facts.” “We hope that the facts on this new website will help people understand how our dairy industry works and see through some of the falsehoods currently being passed off by some as truths,” DFC president Wally Smith said in a release. Defenders of Canada’s system of supply management for dairy,

“Earn their income”

DFC’s new website wants to bust what it says are myths about supply management.

mance.

The Conservative government’s long-stated support for supply management has also taken new domestic flak in recent months, as the Tories moved to pass and enact legislation ending the Canadian Wheat Board’s single marketing desk for Prairie wheat and barley, starting Aug. 1 this year. One such critic, National Post and Maclean’s columnist Andrew Coyne, ripped the government’s two policy positions in a column last summer as “profoundly hypocritical.” In the DFC’s release, Smith sought to bust any claim that Canadian dairy farmers benefit from government subsidies, saying they “earn their income entirely from the marketplace.”

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Consumers in countries such as the U.S. and EU nations, on the other hand, “pay twice for their dairy products — once at the store and one more time through their taxes” in dairy subsidies, he said. The DFC, on its new site, also states that supply management “hasn’t stood in the way of Canada’s ability to successfully negotiate trade agreements.” The group cited the North American Free Trade Agreement with the U.S. and Mexico, plus various bilateral trade pacts finalized with overseas customers since 1986. Supply management also “does not close doors to imports,” the DFC said, adding that the EU, with “heavily subsidized” dairy products, exports to Canada 10 times what it imports, though the bloc has over 500 million consumers. The DFC said its site aims to counter “misinformed myths” about Canada’s dairy system, “which has delivered Canadians a reliable supply of top-quality dairy products for 40 years.”

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Rural depopulation is not a problem in Ethiopia LAND TENURE  As farm families get larger, already-small

parcels of land are divided even smaller BY LAURA RANCE

WOLAYTO-SODDO, ETHIOPIA

Laura Rance, editor of the Manitoba Co-operator, is travelling on a media food study tour with the Canadian Foodgrains Bank. Other stories are posted at www. manitobacooperator.ca.

he highway southwest of Addis Ababa to WolaytoSoddo is wide and smooth, but there is no such thing in Ethiopia as setting the cruise control and just cruising, as one would expect to do on the wide-open Canadian Prairies. With nearly 80 million people, Ethiopia is densely populated and most of its people live as subsistence farmers in rural areas. We share this highway with other users, including a steady stream

of pedestrians and livestock — cattle, goats, sheep and the poor-man’s B-train, the donkey, carrying everything from bags of grain or firewood to containers filled with water, to furniture. As Sam Van der Ende, the Canadian Foodgrains Bank’s field coordinator, deftly manoeuvres us through the traffic, at times forced from highway speed to a complete stop for a wayward donkey or zebu (bovine) that refuses to budge, it becomes clear that safe travel here requires keen intuition for the meandering unpredictable flow — and a good horn. After all, if a pedestrian or livestock gets hit by a vehicle, under Ethiopian law the driver is automatically responsible. One of the members of our group, Al Friesen, of Radio Southern Manitoba, observed that whereas drivers in North America use their vehicle’s

horn as a form of aggression, in Ethiopia it is used to announce, “I am here.”

Deceptively green

We are travelling a day’s drive southwest of Addis Ababa into a district that is known in food aid circles as the Green Famine Belt. While not lush, there is green growth in the fields and hillsides, forested hillsides and water running in the streams. Green isn’t a colour usually associated with famine. From the roadside, at least, it looks like a reasonably productive area. Yet many of these families are not more than a month or two away from not having enough to eat at any given time, a factor of their grinding poverty, the region’s high population density and an increasingly variable climate. It’s why for several years the Canadian

A young man escorts two donkeys carrying supplies up the mountain overlooking Addis Ababa, Ethiopia. PHOTO: LAURA RANCE Foodgrains Bank has been involved in the region through its Canadian partners, World Relief Canada and Evangelical Missionary Church, and the two locally based Kale Hewyet Church branches. Through cashfor-work and food-for-work projects, the families most at risk of running out of food are able to receive support while working on projects that benefit the community. These projects tend to be oriented toward soil conservation through terracing erosion-prone hillsides and reforestation, as well as road maintenance. And because there is never enough aid to go around, the potential project participants are selected after a complicated exercise in community consensus. The families most in need are identified by government and community leaders,

but then the finalists are chosen by a community meeting. If picked, the household must supply labour to the project in exchange for 75 kilograms per month of maize, if it is a food-forwork project, or 242 Ethiopian birrs (C$13.92) per month. Although people can have longterm tenure in Ethiopia, and land can be passed from generation to generation, they don’t own their land outright — so it cannot be bought and sold. As families grow, their land parcels shrink and their capacity to acquire more through leasing is limited. The pressure on the common grazing areas becomes more intense and the pressure unsustainable. The growing landlessness is made worse by the weird weather the region has been experiencing. Some call it climate change, but whatever you choose to call it, it’s wreaking havoc with local food security. The rains on which people depend for growing food have become increasingly unpredictable. Whether those rains come too early, too late, or not at all, they are a recipe for hunger.

Waiting for rain

Bekele, a farmer we met in the hills outside of Soddo in the Wolayta district, told us Jan. 30 that he was still waiting for the January rains to come — rains that  Continues on next page

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ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

“I am not thinking they will stay on small land. I expect if I send them to school, I hope they will get a better job.” SIMON LEMA FARMER

tease his sweet potato crop into producing tubers. He’s running out of time. With two wives and three children to support, Bekele said that if the sweet potato crop failed, he would sell one of the family’s two heifers to buy food to tide them over, hopefully until the next harvest. It’s this kind of survival strategy that food aid agencies hope to prevent. Livestock are assets, at once representing a family’s relative wealth and its savings account. Once it starts selling assets in order to eat, they are predisposed to a free fall further into poverty. Many of the farmers we’ve met over the past several days farm a hectare or less of land. Even in a good year, they are barely producing enough maize, sweet potato and haricot beans to feed their families much less have leftovers to sell for cash.

If the weather doesn’t co-operate, they can quickly be thrown into a food crisis. Support from either government or non-government agencies can help tide them over, but no one is fooled, least of all the project participants, into thinking it is a long-term solution. The search is on for ways to achieve higher levels of productivity, make it possible for these farmers to acquire more land, and develop alternative sources of income. Simon Lema, a 45-year-old farmer in the Damat Wodye district south of Wolayto Soddo, said his dream for his eight children is for all of them to get an education. “I am not thinking they will stay on small land,” he said. “I expect if I send them to school, I hope they will get a better job.”

Suit cites “unreasonable” hopper car maintenance costs.

Class action against railways considered in Calgary court DAMAGE CLAIM  Suit alleges railways overcharged

$577 million from 1994 to 2007 STAFF

A proposed class-action suit against Canada’s two major railways over grain freight rates was due Feb. 1 in a Calgary courtroom, where it will be decided whether the suit can proceed on all Prairie farmers’ behalf. In a letter to potential “class” members, Regina lawyer Tony Merchant said the certification hearing in Alberta Court of Queen’s Bench is expected to run over eight days, through to Feb. 10. Merchant said $675 million, plus interest and further amounts accumulating each year, are “what we believe we can establish are ongoing wrongful charges,” which he said makes the case a “billion-dollar farm issue.” The claim is filed in the name of Edmontonarea farmer Tom Jackson, a former commissioner with the Alberta Pulse Growers Commission and one-time director candidate for the Canadian Wheat Board, as the suit’s representative plaintiff. In his brief filed Dec. 30 ahead of the certification hearing, Merchant’s suit alleges that between Aug. 1, 1995 and July 31, 2007, Cana-

Church of the trilogy, Addis Ababa, Ethiopia.

FILE PHOTO

dian National and Canadian Pacific Railways (CN, CP) “did charge unfair and unreasonable shipping rates” based on “unreasonable” hopper car maintenance costs. The claim stems from a February 2008 ruling by the Canadian Transportation Agency (CTA) that has since substantially lowered the maximum annual revenue CN and CP are allowed to keep for moving Prairie grain. The CTA ruling, upheld in November 2008 by the Federal Court of Appeal, found that the railways’ costs for maintenance of grain hopper cars, previously “embedded” in both railways’ federally capped grain freight revenue at $4,379 per car, were in fact $1,371 per car. Merchant’s claim alleges the railways set tariffs and shipping rates under the maximum rate scales and maximum revenue entitlement allowed to them for handling Prairie grain under the Canada Transportation Act “without regard” to their actual hopper car maintenance costs. Merchant’s brief estimated the amount allegedly overcharged from 1994 to 2007 at about $1.66 per tonne, for a total of $577 million.

PHOTO: LAURA RANCE

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Port group to close as CWB monopoly ends EXPORT DATA  Analysts worry that information on vessel arrivals will no longer be available

BY ROD NICKEL WINNIPEG/REUTERS

The 103-year-old organization that co-ordinates shipments through Canada’s two biggest grain-shipping ports is winding down, saying it may not be needed once the Canadian Wheat Board loses its monopoly. The Winnipeg-based Canadian Ports Clearance Association (CPCA) will cease operations this summer on Aug. 31, one month after the wheat board loses control over Western Canada’s wheat and barley sales. The association, which has eight employees, co-ordinates the transfer of western grain from port terminals into vessels, and also sends daily notices to subscribers of ship lineups at Port Metro Vancouver, B.C. and Port of Thunder Bay, Ont. The role was deemed necessary under the monopoly system

Richardson purchases independent terminal in Alberta Peace region EXPANSION  Fourth aquisition in the region

STAFF

Canada’s second-biggest grain handler has made another play to expand its handle in northwestern Alberta’s Peace region, this time buying from an independent player. Richardson International announced Wednesday it will buy the Great Northern Grain terminal and crop input business at Nampa, Alta., about 26 km south of Peace River, for an undisclosed sum. Edmonton-based Great Northern Grain, which also operates producer car-loading services plus a smaller grain terminal at Killam, Alta., recently finished an expansion at Nampa, adding 2,500 tonnes of storage capacity, a new grain-cleaning building and new cleaning equipment. Richardson also pledged to start work this spring on an additional expansion at Nampa, boosting the terminal’s storage capacity by 14,000 tonnes and increasing the rail car spot to handle 104-car-unit trains. It will also add retail fertilizer services. Richardson noted this deal marks its fourth acquisition in the Peace in the last two years, including the purchase of crop input centres at Falher, Fairview and Manning in 2010 and near-complete construction of a 20,000-tonne fertilizer storage shed with rail receiving at its Dunvegan facility at Rycroft.

So far, all export wheat and barley is owned by the wheat board and vessels are directed to wherever it’s available. After Aug. 1, they will go to the terminal designated by the seller. FILE PHOTO because the CWB, while responsible for Prairie wheat and barley sales, does not own grain terminals or vessels. Even so, the organization has its start in 1909, decades before the CWB formed. The biggest Canadian grain handlers including Viterra, Richardson International and Cargill own much of the grain movement

pipeline — from country elevators to port terminals — leaving the CPCA’s role less critical than it may have been during the monopoly era. “When it’s (direct) sales and I’m buying from you, I don’t know if we need a party in between us to tell me where to put my boat in,” said Doug Hilderman, president

of the non-profit association, which is controlled by grain shippers and ship owners. “The core function they’ve had is essentially irrelevant now.” In any case, the CWB started arranging shipments directly with vessel owners a couple of years ago anyway, which weakened CPCA’s role, Hilderman said. A

CWB spokeswoman declined to comment. Once the association winds down, the movement of Canadian grain will become less transparent without CPCA’s daily freight reports, Hilderman said, adding that no organization has stepped up to replace that function. Ultimately, there may be a need to recreate the CPCA, he said, adding he’s disappointed the storied association couldn’t continue. Agricultural traders and analysts, especially those who do not work directly for grain exporters, may be especially hard pressed to track export demand for crops and factors that may be influencing cash and futures prices. “Vessel lineups for Thunder Bay and Vancouver are very important parts of what I do,” said Chuck Penner, analyst at LeftField Commodity Research in Winnipeg. “Knowing what’s coming and going helps explain what’s going on in the markets.”

Q: What are my options now? Q: Should I be planning already? Q: What does this mean for me? Q: Will marketing wheat be just like marketing canola? Q: Who’s going to help me through this process? Q: Is August 2012 the real end date? Q: How will I manage the transition? Q: Where can I voice my opinion? Q: Does my opinion count? Q: Who can I call if I have questions? Q: Can I survive in a competitive market? Q: How will I sell my wheat? Q: How will I sell my barley? Q: What role will the ICE Futures play? Q: What will happen with the foreign exchange? Q: How will premiums and discounts be applied to my wheat? Q: What will happen to the Canadian Grain Commission? Q: What is the new base grade? Q: Am I going to need more storage? Q: How is rail transportation going to work? Q: How can I access the US price? Q: Will the quality of my wheat continue to be controlled? Q: How will I know the quality of the wheat, durum or barley I’m delivering? Q: Who will my wheat be sold to? Q: Will the CWB still be a valid option for selling my barley and wheat? Q: How am I going to move my grain? Q: What is a good basis? Q: Am I expected to know about international trade? Q: Will everyone else know more than I do? Q: How long will this process take? Q: Are grain companies going to build more storage? Q: How will this impact price? Q: Who can I trust?

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Third-largest U.S. hog producer accused of abuse DEFENDED  Producer says one system of housing sows

not necessarily better than the other BY MICHAEL HIRTZER

he humane society has accused two of the largest American pork producers of abuse by confining sows in cages during pregnancy. In a video on the humane society website, sows can be seen chewing the metal bars of their gestation crates and struggling to stand up. Some are scratched, bleeding or even dead. “When it comes to the treatment of farm animals, few practices are more controversial than the extreme confinement of animals in tiny cages for their entire lives,” said society spokesperson Paul Shapiro.

“We found gestation crates overflowing with feces and urine because of a backed-up sewage system, employees hitting pigs in the genitals and pulling their hair in order to move them from one crate to another, piglets with splayed legs duct taped backed to their bodies.” The humane society said it is not seeking criminal charges against Seaboard Foods and Prestage Farms Inc, owners of the Oklahoma facilities where the videos were shot. Seaboard is the No. 3 U.S. hog producer and a supplier to Wal-Mart, while Prestage is No. 5. Using gestation crates doesn’t constitute abuse, countered Seaboard president Terry Holton.

“Animal-welfare experts and professional groups have found no one method for housing gestating sows that is clearly better than the other when managed properly,” Holton said. That view was echoed by Ron Prestage, who owns Prestage Farms with his parents and siblings. “There is nothing for me to defend in the video. We have both systems (gestation crates and group pens) and have for years,” Prestage said. Investigators for the humane society got jobs at the two breeding facilities late last year and shot video of the conditions. The group said 70 per cent of the pork industry confines its preg-

nant pigs to gestation crates, despite the European Union and eight U.S. states banning the practice. The welfare group advocates group housing for pigs, which allows the animals to move around freely rather than being confined individually in cages. “There are times when each system has its advantages,” Prestage said. “If you have an animal that’s gotten injured, it’s much easier to treat them if they are in an individual crate. If they happen to be on the bottom of the pecking order, the other ones are just going to beat them up. “On the other hand, if there is no fighting, you might decide they are happier in a group pen.”

BRIEFS End of wheat monopoly to boost Viterra profits WINNIPEG / REUTERS / Viterra expects to see higher earnings and grain-handling volumes thanks to the end of the Canadian Wheat Board’s marketing monopoly. The company expects to see pretax earnings jump by $40 million to $50 million a year. Additional grain volumes at elevators and port terminals will generate higher revenues from facilities with fixed costs, the company said. Viterra’s guidance is positive, but “decidedly conservative,” wrote BMO Capital Markets analyst Kenneth Zaslow in a note to clients. The company will likely see the higher earnings it is forecasting for 2014 a year earlier, Zaslow wrote. Viterra and other grain handlers, such as Cargill and Richardson International, are already signing forward contracts with farmers for delivery of grain once the board’s monopoly ends on Aug. 1.

Record wheat crop may prompt India to start exporting surplus NEW DELHI / REUTERS / India is expected to produce a record 88.31 million tonnes of wheat in 2012, raising hopes the world’s second-biggest producer will allow additional exports to trim bulging reserves. “Temperatures have been ideal for wheat. Rains in January were very useful and we don’t expect any problem of terminal heat in the days to come,” said farm secretary Prabeer Kumar Basu. The bumper stocks could help India, which consumes 76 million tonnes annually, firm up a proposal to export wheat to Iran to partially settle its oil imports bill. The country is also expected to harvest a record crop of rice and cotton.

South Saskatchewan plan deadline extended

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AGRI-NEWS / The Government of Alberta posted an online workbook available at www.landuse.alberta.ca for Albertans to share their feedback on the South Saskatchewan Regional Advisory Council’s (RAC) advice on developing a regional plan for southern Alberta. Participation in this second phase of the regional planning process is encouraged. The deadline for feedback has been extended, and the workbook will be available until April 30, 2012. This is an important building block in the development of the regional plan — input during all three phases of the consultation process and the RAC advice will influence the development of the final plan.

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

USDA sets guidelines for healthier school meals Not so healthy } Fries stay on the menu and pizza is classified as a vegetable by ian simpson

washington / reuters

SEC_WHEAT12REV_T_AFE_GN.qxd 1/10/12 3:11 PM Page According to the U.S. Congress, this is a vegetable thinkstock

chool meals for millions of children will be healthier under obesity-fighting USDA standards that double the fruits and vegetables in cafeteria lunches. But french fries remain on the menu. In the first major changes to school breakfasts and lunches in more than 15 years, the new guidelines will affect nearly 32 million children who eat at school. They will cost the federal government about $3.2 billion to implement. The new meal requirements are part of the Healthy, Hunger-Free Kids Act championed by first lady Michelle Obama. President Barack Obama approved the measure in late 2010. The guidelines, to be phased in over three years, double the amounts of fruits and vegetables

in school lunches, and boost offerings of whole grain-rich foods. The new standards set maximums for calories and cut sodium and trans fat, a contributor to high-cholesterol levels. Schools may offer only fat-free or low-fat milk. About 17 per cent of U.S. children and teenagers are obese, according to the Centers for Disease Control and Prevention. About one-third of U.S. adults are obese.

Fries with that?

Lawmakers altered the guidelines in November. They barred the USDA from limiting french fries and ensured that pizza counted as a vegetable because of its tomato paste. Trade associations representing frozen pizza sellers like ConAgra Foods and Schwan Food, as well as french fry sellers McCain Foods and J.R. Simplot, were instrumental in blocking changes to rules affecting those items.

Margo Wootan, nutrition policy director for the non-profit Center For Science in the Public Interest, said the new standards were a big improvement despite food industry lobbying and the congressional revamp. “The new school meal standards are one of the most important advances in nutrition in decades,” she said. “A healthier population will save billions of dollars in future healthcare costs,” added Dawn Undurraga, staff nutritionist with the Environmental Working Group. As an example of a new meal, the USDA said an elementary school lunch could be whole wheat spaghetti with meat sauce and a whole wheat roll, green beans, broccoli, cauliflower, kiwi, low-fat milk, low-fat ranch dip and soft margarine. That lunch would replace a meal of a hotdog on a bun with ketchup, canned pears, raw celery and carrots with ranch dressing, and lowfat chocolate milk.

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BriefS ADM profit plummets, cuts spending

More wheat solutions than Prairie towns.

reuters /Archer Daniels Midland has reported sharply lower quarterly earnings, and cut its capital spending plans. Prices for corn and soybeans are high, but this does not always translate into strong revenues for agribusiness companies. Commodity trading firms and processors have struggled as volatile markets have increased risks and costs. “Ongoing weakness in global oilseed margins, lower results in corn, and poor international merchandising results hurt our secondquarter profits,” said chief executive Patricia Woertz.

Ukraine halts railway grain exports

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kiev / reuters / Ukraine’s State Railway Administration has banned its grain railway cars from leaving the country, effectively halting railway grain exports. The ban, effective Feb. 1, is being described as “a temporary restriction which was introduced in a bid to secure domestic shipments.” Ukraine operates about 11,000 grain cars and around 1,000 of them were outside of Ukrainian territory as of Feb. 3. Ukraine harvested a record 56.7 million tonnes of grain in 2011, and has an exportable surplus of 23 million to 26 million tonnes. “This decision means that Ukraine has a real shortage of cars,” said analyst Mykola Vernytsky. “Authorities are likely to speed up Ukrainian marine exports but the decision will hit our clients in Europe. Ukraine exports a lot of grain in cars even to Germany.”

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

DFC president says improvements needed to supply management FIRING BACK  Wally Smith accuses critics of

undertaking “a campaign of misinformation” BY ALEX BINKLEY

AF CONTRIBUTOR/OTTAWA

airy farmers have to think long term and get on with creating a national milk pool, says Dairy Farmers of Canada president Wally Smith. “We have to get out heads around a pool,” he said at DFC’s annual policy conference, complaining negotiations so far have resembled the seemingly endless WTO trade talks. “Nothing is getting done.” A pool will have to recognize specific regional realities, he added. “We need to think three, five, 10 (or) even 20 years into the future to create a long-term vision for supply management. Let’s be bold. We need to reflect on how we can improve our system.” Supply management has the backing of the federal and provincial governments, which recognize its importance to rural Canada, he said. However, farmers can’t afford to squander that support. “We need to add value to the farm gate worth of milk,” said the B.C. dairy producer. “We need to find ways to enhance our economic activity.” The organization is also taking on its critics. It has launched a new web-based program called yourmilk.ca to counter what Smith called “a campaign of misinformation” by some business columnists and economists in recent months. “It shows it’s time for dairy farmers to bring their message to the marketplace,” said Smith. “We have to get away from being secretive. If farmers don’t start telling our story, others will and when that happens, it’s distorted, twisted and full of misinformation. “No one talks about all the innovation in our industry or how much research and development we support or that we have adopted farm environmental plans and lead the way on animal welfare plans. Farmers have to tell their story.” Part of that story, he said is that “we don’t control retail prices, we just get a farmer a fair return.” A dairy farmer earns 21 cents from a glass of milk, but restaurants charge 10 times that amount, while there’s only 69 cents’ worth of cheese in a pizza, he said “Canadians are getting a very good deal,” said Smith.

Market development programs

Conference attendees also heard Pierre Lemieux, parliamentary secretary for agriculture, pledge nearly $1.3 million from the Growing Forward program for market development for dairy

products and genetics systems internationally. The Canadian Livestock Genetics Association will get about $1 million of the money to participate in key shows and trade missions as well as train farmers in the production and transfer of embryos. DFC will have more than $130,000 to develop niche markets for high-value cheese. More

than half of Canadian exports of specialty cheeses go to the U.S., which imported $12 million worth in 2010. As well, DFC announced agreement with the National Farm Animal Care Council to test a dairy animal-care assessment program that will be a model for other farm livestock Codes of Practice.

This pool of milk should be national, says DFC president Wally Smith.

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Budding “agri-preneurs” in Peace region get a helping hand EXPERT ADVICE  Business coach guides

startup businesses with information and support BY REBECCA DIKA

AF CONTRIBUTOR | GRANDE PRAIRIE

n innovative agri-food value-add cluster has been created in the Grande Prairie region to foster the development of “agri-preneurs.” The goal is to boost local processing of food and turn some area farmers from “price-takers” into “price-makers,” said Natalie Gibson, spokesperson for Community Futures Grande Prairie & Region (CFGP). Many farmers are keen to develop products but don’t know how to go about it, and the cluster was designed to provide support, she said. Twelve businesses — chosen from 145 applicants — have been working with a business coach to develop business strategies for product positioning and profitability, identify target markets or “ideal” customers, create efficiencies, and build capacity in production, operations, market reach or product offering, said Gibson. “After six months, we’ve already seen a 50 to 100 per cent growth in the companies,” she said. “We’ve created three new food products as well as entered new markets based on retail rather than geography.” The heart of the program is connecting people to the resources they need, said Holly Sorgen, CFGP executive director. “We can do this by linking producers and processors to professionals who can assist at all stages of the business with a focus on profitability,” she said. A recent Agri-Biz Opportunity workshop held at the GP Inn drew more than 30 participants despite frigid temperatures. They heard from two Albertabased local food organizations, and learned about direct selling methods, emerging market opportunities, and resources and industry services that support agriculture. Leona Staples of the Innisfail Growers Co-operative is optimistic about the future of small specialty operations in Western Canada. The co-op direct markets a variety of vegetables, and Staples and husband Blaine who own the Jungle Farm, said she believes consumer demand for quality and sustainability in their food products will ensure the viability of operations like hers. Jungle Farm was founded in 1897 near Innisfail by her greatgrandfather Jacob Quantz. “Our (producer co-op) currently represents five farm families, but by this time next year there will be 10,” said Staples. That kind of networking goes a long way to helping small ag businesses, said Gibson. Each agri-preneur has a focus on value added rather than a commodity product, each has the capacity to grow, and each has displayed willingness to learn how to be more effective and increase profitability, said Gibson. Products include candy, rabbits, heirloom seeds, and hemp.

“Next steps might be to seek funding, perhaps for a product label or website,” she said.

“After six months, we’ve already seen a 50 to 100 per cent growth in the companies.”

“Maybe it’s hiring a specialized joint-venture coach for marketing a product in Eastern Canada.” Gibson said the project has helped to pinpoint opportunities, bottlenecks and service gaps. For example, there is a need for independent distributors in Grande Prairie that can take 10 or 15 products to collectively represent a number of agribusinesses to a restaurant or hotel. “We’re physically able to move research into implementation,” said Gibson. “We get to test our theories.”

Leona Staples of the Innisfail Growers Co-operative is optimistic about the future of small specialty operations. PHOTO: REBECCA DIKA

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Saskatchewan pledges seven figures to wheat research STAFF / The Saskatchewan government has pledged $10 million over five years in new funding for development work on better, hardier wheats. The new support, to flow through the province’s Agriculture Development Fund (ADF), is meant to “accelerate” development of new varieties and help improve “yield, quality and tolerance to disease and extreme weather conditions.” The province said its funding is for a crop that had become “less profitable for producers to grow” in recent years compared to canola or pulses. Rising demand for food worldwide makes it “crucial that new investments be made in wheat research,” the province said. “Early varieties like Marquis made farming worthwhile in all but the most inhospitable parts of the Prairies. It allowed the Prairies to become the breadbasket of the British Empire for the next 100 years,” Premier Brad Wall said in announcing the funds Feb. 2 in Saskatoon. “It’s time to recapture that leadership, so Saskatchewan can help feed a hungry planet.” The wheat research money will be used to partner with both public and private research organizations, the province said.

Gary and Lester Waldron of Rimbey getting their rig of miniature horses Tom and Jerry ready for the annual Rimbey Sleigh, Wagon and Saddle Club cutter parade. PHOTO: SCOTTY AITKEN

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REUTERS / Canada’s supplies of canola were slightly tighter on Dec. 31 than a year earlier, but all-wheat supplies grew modestly, Statistics Canada has reported. The calendar-year-end stocks report is an indicator of how accurate Statscan’s final production estimates were for the most recent harvest, along with how robust demand was late in the year. The latest figures for wheat, canola and oats fell within the range of expectations. “It’s amazing how everything is very close to yearago levels,” said Ken Ball, futures and options broker at Union Securities in Winnipeg. The trade was most interested in canola levels, with both domestic crushing and exports running ahead of last year’s pace. But cold, harsh weather in Europe and dryness in South America are more significant market influences right now, Ball said. Canola stocks totalled 9.29 million tonnes, down 1.5 per cent from 9.43 million tonnes a year earlier. All-wheat stocks edged up 0.6 per cent to 20.96 million tonnes while oat supplies amounted to 2.03 million tonnes, down 14.5 per cent from last year.

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Cattle prices rally to a new historical high to begin 2012 RECTANGLE PATTERN  Clue provided for the breakout in cattle futures

Market psychology

Since the rectangle basically outlines a trading range, the buying and selling which comprises this pattern denotes support and resistance levels within the current price trend. The upper horizontal boundary begins to form due to profittaking by longs, which turns prices lower. This decline in turn attracts bargain hunters.

Access to global markets and info rmation on emerging trends, and niche opportunities help to lower the risk associated with volatile commo dity markets. It’s what growers nee d to succeed. See your Viterra fac ility today or visit viterra.ca.

David Drozd is president and senior market analyst for Winnipegbased Ag-Chieve Corporation. The opinions expressed are those of the writer and are solely intended to assist readers with a better understanding of technical analysis. Visit Ag-Chieve online at www.ag-chieve.ca for information about grain-marketing advisory services, or call us toll free at 1-888274-3138 for a free consultation.

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angle projected at the point of breakout. It is common for prices to exceed the formation’s boundary only to return to the pattern before moving in the direction of the original breakout.

shorts or longs increases is very useful, for it is shortly thereafter that their contracts become fuel for the fire. A short-covering rally will drive prices higher, following a breakout to the upside. In the same way, a long liquidation break drives prices lower, when prices break below the lower boundary. When chart formations form on a longer-term chart, like this monthly nearby feeder cattle futures chart, they take on a higher degree of reliability than on a shorter-term chart. This is extremely useful for providing ranchers, farmers and traders alike, with a reliable long-term perspective on price direction. Send your questions or comments about this article and chart to info@ag-chieve.ca.

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the height of the rectangular pattern and adding it to the breakout point, which in this case, is the horizontal line of resistance at $120. In this example, feeder cattle had been trading in a $30 range between an area of support at $90 and a level of resistance at $120. By adding $30 to $120, the technical measurement gave ranchers and traders an objective of $150, which came to fruition 13 months later. The breakout from a rectangle is considered to be highly reliable as a forecasting tool. A minimum measurement is determined by the vertical distance of the rect-

The lower boundary represents a line of support where the demand, or buying of contracts, exceeds the supply. Similarly, the upper boundary represents a line of resistance where the supply of contracts for sale exceeds the demand, or buying of contracts. Between these two extremes the market is in equilibrium, with neither buyers nor sellers able to gain a lasting advantage. Prices remain trendless for a time until either the buying at the upper boundary exceeds the selling, or the selling at the lower boundary exceeds the buying. When either occurs, the scales are tipped and prices break out of the formation. When a rectangle develops in an uptrending market, one should realize that a breakout through the upper boundary not only cleans out the supply of contracts which had previously halted the advance, but it puts all shorts into a losing position. Similarly, in a downtrend, when prices break through the lower boundary of this formation, all longs are placed on the defensive. To understand where on a chart, that the anxiety level of

ADVICE

ive cattle and feeder cattle rallied to a new historical high last week. In reaching $150, feeder cattle prices achieved a technical measurement derived from a rectangle pattern. Rectangles, or box formations as they are sometimes called, are found frequently on futures price charts. Most of the time, they are continuation, or sideways consolidation patterns, in which prices will pause for a duration of time without making progress. As illustrated in the accompanying chart, a rectangle formation consists of a trading range which is bounded on both the top and bottom by horizontal lines. Within this sideways range, the price fluctuations must form at least two tops and bottoms. The pattern reaches completion when the price exceeds either the upper or lower boundary. The completion of this rectangular pattern as seen on the chart became evident when prices exceeded an area of resistance at $120 in December 2010. A breakout of the sideways pattern is denoted as “A” in the accompanying chart. A minimum objective is derived from taking the measurement of

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Beef industry future will be influenced by heifer retention TWO CAMPS  Some producers want out while the

getting is good, others look to the future

BY BRENDA SCHOEPP

rices for feeder cattle are at historical levels and the mood within the cow-calf and grass industry is visibly relaxed and joyful. Most certainly, the inventory numbers support the celebration as both Canada and the U.S. face the lowest cattle inventory in 50 years. The length and continued strength of this market will depend highly on the degree at which cow-calf producers retain heifers for breeding. There were several contributing factors to the current shortage of inventory. In Canada the main one was the closure of borders due to BSE. This backed cattle up and deflated feeder cattle prices. Many cowcalf producers sold both heifers and steers to make payments. As cows also depreciated in value, the older females were kept at home and were not replaced with young stock. Eventually those cows aged enough to warrant retirement and were not replaced at the pace in which they were culled. In the U.S., the forces of nature eliminated cows, calves and feeders. Severe winter storms over the past few years threatened calf survival and the languishing drought in the south hit the nation’s largest cow herds. Poor feeder prices earlier did not spur retention. Collectively, the loss was not so

much in actual beef production, there was plenty of that between heavy fed cattle and cull cows, but rather the loss of initiative to rebuild. On the Prairies, there now seems to be two distinct camps — the producers who cannot wait to get out of the beef business regardless of his/her age and those who are anxious to expand. Those exiting are tired of the game and are looking for a little more security. The good price is the door to their future. The other producer camp wants in and they want in bad. They have a long-term goal and are confident that markets can sustain themselves for three years. They know this is possible, not so much because of the current inventory, but because of the lack of incoming females to the breeding herd.

Domestic consumption dropping

Realistically, the domestic beef industry is in tough shape regardless of the price. Domestic consumption is at a level that mirrors the 1960s and North America is highly export dependent. The U.S. became a net exporter of beef as domestic consumption south of the line ground to a halt. Beef production itself did not falter as bigger cattle and the inclusion of cull cows kept product on the shelf. As the American consumer continues to focus on ground beef

as a staple, this further supports cull cow prices, enticing owners to continue to sell out. The drought took out a lot of cows, but the price will take out many more. In Canada, we are more forgiving at the meat counter and eat a variety of quality cuts, especially at food service, but consumption is still so pathetic that it cannot rescue our industry if there is export interruption. Producers are continuing to sell cows because they like the price and have a sour taste for future risk. It is only now that cows on offer for slaughter are beginning to dry up. As they do, overall beef production will finally start to decrease offsetting the negative of declining consumption. The progressive camp recognizes the risk and is cautioned not to overpay, but they are enthralled with the fact that we are 400,000-600,000 head of cattle short for slaughter and the lack of heifer retention in recent years assures them that we will stay short on cattle and beef into 2014. They are comfortable that the cows will appreciate, especially if bought now. And, they fully understand that the lack of heifer retention will short the market of future inventory. It is one of those rare times in history when feeder heifers may be more valuable than steers.

New risks

The irony here is that the lack of

fed and commercial inventory creates its own risks. Packers cannot run empty hooks and the interdependence that Canada and the U.S. share can be fatal. A lack of fresh new markets and worse yet, a lack of product to process, could push this industry into the stun box. The sword has a double edge, we need the heifers and cows both in the cow herd and hanging on a hook. At some point in the near future those with heifer inventory will have some big decisions to make. Buyers will get caught in the hype and pay enough for heifer calves that it will not be sensible to keep them for grass or for breeding. In addition, the shortage of steers as we head into spring will keep feedlot buyers in the game and then those heifers will again be diverted from the cow herd to the kill floor. The degree of heifer retention will heavily influence both feeder and fed cattle prices. Regardless, the shortage of cattle for the short term is very real and all inventory, bound for plant or pasture, will be stable in value allowing for those entering and exiting, to experience solid cattle prices. Brenda Schoepp is a market analyst and the owner and author of Beeflink, a national beef cattle market newsletter. A professional speaker and industry market and research consultant, she ranches near Rimbey, Alberta. brenda. schoepp@cciwireless.ca.

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HEATED & GREEN CANOLA

advertising deadline Wednesday noon

Published by Farm Business Communications, CAUTION www.milliganbiotech.com 1666 Dublin Avenue, Winnipeg, MB R3H 0H1 The Alberta Farmer Express, while assuming no responsibility for advertisements appearing in its WINNIPEG OFFICE columns, exercises the greatest care in an endeavor to restrict advertising to wholly reliable firms or individuals. Alberta Farmer Express However, please do not send money to a Manitoba 1666 Dublin Avenue, Winnipeg, MB R3H 0H1 Co-operator box number. Buyers are advised to request Toll-Free in Canada 1-888-413-3325 shipment C.O.D. when ordering from an unknown Phone 403-341-0442 in Winnipeg advertiser, thus minimizing the chance of fraud and FAX 403-341-0615 eliminating the necessity of a refund where the goods Mailing Address: have already been sold. Box 9800, Winnipeg, Manitoba R3C 3K7

ANTIQUES

AD ORDER FORM ASSORTED DEUTZ AND OTHER diesel engines. KMK Sales, (800)565-0500, Humboldt, SK.

BUILDING & RENOVATIONS Building Supplies

FARM MACHINERY

MAiL TO: Alberta Farmer Express, BoxReduced 9800, Winnipeg, R3C 3K7 STEEL BUILDINGS: FactoryManitoba Inventory

30x36 - Reg $15,850 Now $12,600; 36x58 - Reg $21,900 Now $18,800. 48x96 reg. $48,700, now $41,900 1-800-964-8335 Source: 1MW

FARM MACHINERY FAx TO: 403-341-0615 PhOnE in: Toll-Free in Canada 1-888-413-3325 Haying & Harvesting – Baling

OR (403) 341-0442 in Alberta

2009 2150 HESSTON SERIES, 3x3 large square

baler. Always shedded, total bales, 2500, PHONE used two # ______________________________ NAME ___________________________________________________________

BUSINESS SERVICES

seasons, asking $65,000 cdn OBO; 1982 1069 NH

diesel bale wagon, c/w 1028S mil-STAK 3x3 loader TOWN ____________________________________________ ADDRESS ____________________________________________ COMBINE WORLD 1-800-667-4515, www. arm, 354 Perkins engine w/redone fuel system last

BUSINESS SERVICES

PROVINCE ___________________________ Crop Consulting

season. Always shedded. paint & rubber in good

condition, stereo, very nice wagon, well POSTAL CODEAC/CD _________________________

FARM CHEMICAL SEED your COMPLAINTS Even if you do not want name &

maintained ready to go to work, asking $45,000 cdn obo. email sdryden@rfnow.com or contact Steve Dryden to (204)838-2352, Virden, MB.ad, we need the address appear in your

combineworld.com 20 min. E of Saskatoon, SK on Hwy. #16. 1 year warranty on all new, used, and rebuilt parts. Canada’s largest inventory of late model combines & swathers.

information for our files.

We also specialize in: Crop Insurance appeals; Spraying EquipmEnt WANTED: JD 7810 c/w fel & 3pth; sp or pto bale Chemical drift; Residual herbicide; Custom operator wagon; JD or IHC end wheel drills. Small square PLEASE PRINTissues; YOUR AD BELOW ______________________________________________________________________________ Equipment malfunction; Yield comparisons, baler. (877)330-4477 FARM MACHINERY Plus Private Investigations of any nature. With our _________________________________________________________________________________________________________ Sprayers assistance the majority of our clients have received Combines compensation previously denied. Back-Track _________________________________________________________________________________________________________ 2002 FLEXICOIL 67, SUSPENDED boom, 90ft. air Investigations investigates, documents your loss and FARM MACHINERY curtain, 1000/gal tank, 100/gal rinse tank, $22,000 assists in settling your claim. Combine – Case/IH OBO (306)921-8217, Melfort, Sk. _________________________________________________________________________________________________________ Licensed Agrologist on Staff. For more information _________________________________________________________________________________________________________ Please call 1-866-882-4779 Tillage & Seeding

_________________________________________________________________________________________________________

CONTRACTING

FARM MACHINERY

Tillage & Seeding – Tillage _________________________________________________________________________________________________________

1-800-667-2075 hodginsauctioneers.com

CONTRACTING

_________________________________________________________________________________________________________ Custom Work

At Farm Business Communications we have a firm commitment AGREEMENT to protecting your privacy and security as our customer. Farm • The publisher reserves the right to refuse any or all Business Communications will only collect personal information if advertising for any reason stated or unstated. it is required for the proper functioning of our business. As part of our commitment to enhance customer service, we may share this • Advertisers requesting publication of either display WANTED: USED OR OLD guns, antique personal information with other strategic business partners. For or classified advertisements agree that should the handguns, working or not,be ammunition related items. willmore pay information regarding our Customer Information Privacy Policy, advertisement omitted from and the issue ordered SK PL # Farm 915407 • AB PL # 180827 write to: Information Protection Officer, Business Communications, for (403)816-1190 whatever reason, the Alberta Farmer Express cash. 1666 Dublin Ave., Winnipeg, MB R3H 0H1. shall not be held liable. It is also agreed that in the event of an error appearing in the published Occasionally we make our list of subscribers available to other advertisement, the Alberta Farmer Express accepts reputable firms whose products and services might be of interest to you. no liability beyond the amount paid for that If you would prefer not to receive such offers, please contact us at the portion of the advertisement in which the error address in the preceding paragraph, or call (204)-954-1456. appears or affects. Claims for adjustment are limited The editors and journalists who write, contribute and provide opinions to errors appearing in the first insertion only. to Alberta Farmer Express and Farm Business Communications attempt your to provide accurate and useful opinions, information and Stretch analysis. • While every endeavor will be made to forward box However, the editors, journalists and Alberta FarmerADVERTISING Express and Farm DOLLAR! number replies as soon as possible, we accept no Business Communications, cannot and do not guarantee the accuracy liability in respectin to the loss orAlberta damage alleged to a rise Advertise Farmer Expressof the information contained in this publication and the editors as well through either failure or delay in forwarding such Classifieds, it’s a Sure Thing! as Alberta Farmer Express and Farm Business Communication1-888-413-3325 assume no replies, however caused, whether by negligence or responsibility for any actions or decisions taken by any reader for this otherwise. publication based on any and all information provided.

ANTIQUES Antiques Wanted

Salvage

BUILDING & RENOVATIONS

Building Land Rollers since 1983 CLASSIFICATION _____________________ ❏ I would like to take advantage of the Prepayment Bonus of 2 FREE weeks when I prepay for 3 weeks. 2004 2388 Case IH, 2138 eng., 1683 AFX

No. of words _________________ x topper, No. of weeks ______________ = rotor, x Hyd.$0.60 rev, hopper AFS y/m, RTC, HF, AHC, 1015 header w/RU PU, $125,000 OBO. Andy 403-485-8194 or 403-599-2232

FARMING IS ENOUGH OF A GAMBLE...

______________

Minimum charge $15.00 per week

Combine ACCessories

Add $2.50 if being billed / Minus 10% if prepaying ________________ Gauge Wheel Solutions FARM MACHINERY ridgelandmanufacturing.ca Add 5% GST ________________ Combine – Accessories Card No. __/__/__/__/ __/__/__/__/ __/__/__/__/ __/__/__/__/ Expiry Date __/__/ __/__/ MENZO Phone: 1-204-866-3558

❏

1-888-413-3325

VISA

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and flex, most makes and sizes; also header transSignature _______________________________________________________________________ 10’ - 30’ Land Rollers • 3pth Units Available ports. Ed Lorenz, (306)344-4811 or Website: Cell: 403-380-0173 • http://www.menzo.ca www.straightcutheaders.com Paradise Hill, SK.

TOTAL _____________

Round up the cash! Advertise your unwanted equipment in the Alberta Farmer Express classifieds. Phone Maureen Toll Free 1-888-413-3325.

Albertafarmexpress.ca • february 13, 2012

FARM MACHINERY Tractors – Various

2005 Massey Ferguson 5460, 1495 Hours, 95 PTO HP, 115 Eng HP, 3PTH, $23,500

1984 International 274 Offset, Diesel Tractor, 3PTH, 540 PTO, $5500

1997 John Deere 6300, MFD, 80HP, Turbo Diesel, Left Hand Reverser, 3PTH, $19,500

Kubota L2850 FWA, 4 Cyl Diesel, 34 Eng HP, 27 Pto HP, P/S, 3PTH, $11,000

www.doublellindustries.com

GENERATORS

PERSONAL

DIESEL GENERATOR SET. BF8M1015C, rebuilt Deutz Diesel, 400 KW, 60 cycle, 600 Vac. New generator, automatic shut down, $29,000. Blue Ball, PA (717)351-5081

AVAILABLE BACHELORETTE

• Sprayed foam insulation • Ideal for shops, barns or homes • Healthier, Quieter, More Energy Efficient®

780-905-8565 NISKU, ALBERTA

www.penta.ca

1-888-484-5353

IRON & STEEL JD 9400, 9420, 9520, 8970 JD 7810 & 7210, FWA JD 9860, 9760, 9750, 9650, 9600 JD 9430, 9530, 9630 CIH 8010 w/RWD, lateral tilt, duals 900 hrs. Case STX 375, 425, 430, 450, 480, 500, 530 CIH 8010-2388, 2188 combine 9880, 9882, 9680, 9682 NH, 4WD 3630 Spray Coupe CIH 435Q, 535Q, 450Q, pto avail.

JD 4710, 4720, 4730, 4830, 4920, 4930 SP sprayers CIH 9380 Quad, c/w blade, also 440 & 500 quads JD 9770 & 9870 w/CM & duals CIH 3185, 3230, 4260, 3150, 4420 sprayers CIH Skidsteer 440 & 430 9580 Kubota, FWA, FEL, low hours 3545 MF w/FWA FEL Rogator 1064-854-664 Selection of Combine Headers & Haying Equipment

PIPE FOR SALE 3-1/2IN., 2-7/8in., 2-3/8in., 1in. Sucker Rods. Henderson Manufacturing Sales. (780)672-8585

LIVESTOCK LIVESTOCK Cattle Wanted WANTED COW HERD TO purchase over 5 years with/or without pasture included. (Reply to Ad# 1002, c/o AB Farmer Express Box 9800, Station Main, Winnipeg, MB R3C 3K7

Specialty •Phone: (403)526-9644 •Cell: (403)504-4929

JD 2210, LDR, 3PTH, MFD JD 4430 c/w loader JD 7200, ldr, 3pth FWA, Steiger ST 270, 4WD Mustang 2044 Skidsteer, 1300hrs. 14’ Schulte rock rake Clamp on duals, 20.8x38-18.4x38 IHC 5600 DT 33’ 158 & 148 JD loaders Willmar 500 Fertilizer spreader FINANCE, TRADES WELCOME 780-696-3527, BRETON, AB

FARM MACHINERY Machinery Miscellaneous ACREAGE EQUIPMENT: CULTIVATORS, DISCS, Plows, Blades, Post pounders, Haying Equipment, Etc. (780)892-3092, Wabamun, Ab. WIRELESS DRIVEWAY ALARMS, calving/foaling barn cameras, video surveillance, rear view cameras for RV’s, trucks, combines, seeders, sprayers and augers. Mounted on magnet. Calgary, Ab. (403)616-6610. www.FAAsecurity.com

Big Tractor Parts, Inc. STEIGER TRACTOR SPECIALIST

RED OR GREEN 1. 10-25% savings on new replacement parts for your Steiger drive train. 2. We rebuild axles, transmissions and dropboxes with ONE YEAR WARRANTY. 3. 50% savings on used parts.

1-800-982-1769 www.bigtractorparts.com FARM MACHINERY Tractors – John Deere JD 6420 2005, 5000/HRS, 640 loader, 24spd trans. Good Condition, Always shedded, (403)729-2913, Rocky Mountain House area.

FARM MACHINERY Tractors – Kubota

Adapter available to unroll new barb wire off of wooden spool

- Hydraulic Drive (roll or unroll wire) - Mounts to tractor draw bar, skidsteer or bobcat, front end loader, post driver, 3pt. hitch or deck truck (with receiver hitch & rear hydraulics) - Spool splits in half to remove full roll - Shut off/ Flow control valve determines speed - Works great for pulling out old wire (approx. 3--5 minutes to roll up 80 rod or 1/4 mile) The Level-Wind Wire Roller rolls wire evenly across the full width of the spool automatically as the wire is pulled in Ken Lendvay (403) 550-3313 Red Deer, AB email: kflendvay@hotmail.com Web: www.levelwind.com

USED KUBOTA Utility Tractors (780)967-3800, (780)289-1075 www.goodusedtractors.com

FARM MACHINERY Machinery Miscellaneous

FARM MACHINERY Machinery Wanted

2002 JD 1820, 45-FT., 10-in. spacing, double shoot, dutch paired row, 3-1/2in steel, $30,000; 1998 Agco Star, 8425, 425-hp, 3,400-hrs, duals, auto steer, $51,000; 2004 Hesston 1365 discbine, 15ft 3in. steel rollers, swivel hitch, 2pth or draw-bar adaptor $12,000; 2004 McHale 991B bale wrapper, $9,000; (403)665-2341, Craigmyle, AB.

WANTED: NH BALE WAGONS & retrievers, any condition. Farm Equipment Finding Service, P.O. Box 1363, Polson, MT 59860. (406)883-2118

2003 MORRIS AIRDRILL, 50FT. 10in. spacing, 300/ bu cart, $50,000 US. 2009 MacDon M1000 swather, 35ft triple delivery head, 150 header hours, $110,000 US; (406)217-3488

50’ Flexicoil #75 Packer Bar, 1/yr as new ...$30,000 51’ 2009 Flexicoil 5000HD airdrill, 10” spacing, 5.5” rubber packers, SC, 5” spread openers......................Call 2320 Flexicoil TBH airtank, 1996, always shedded, exc. cond....................................$25,000 Flexicoil 6 run seed treater ................................. $2,000 51 Flexicoil Bodies c/w gen. SC 4” carbide spread tip openers, like new .................................................. $3,500 4952 I 30’ Prairie Star swather, 2005, 800hrs, 30’, 972 header, roto shears, header mover ...................$69,000 810H 25’ Hesston grain table - PU reel ..................Call 2-CIH WD1203 swathers 2011, 240hrs, 36’ headers, PU reel, roto shears, header transports, 1yr..........................................................................$105,000/ea. New Sakundiak 10x1200 (39.97’) 36HP, Kohler eng. E-K mover, P/S, electric belt tightener, work lights, slim fit.....................................................$18,000 New Sakundiak 8x1400 (45.93) auger, 27HP Kohler, E-Kay mover, P/S, electric belt tightener, work lights.....................................CNT$16,600 New Sakundiak 7x1200 (39.97’) , 22HP RobinSubaru eng., battery & fuel tank .......................... $7,500

WANTED: Small square balers and end Wheel Seed Drills, Rock Pickers, Rock Rakes, Tub grinders, also JD 1610 cultivators (403)308-1238

FARM MACHINERY Machinery Miscellaneous New E-Kay 7”,8”,9” Bin Sweeps ............................Call 2002 7000HD Highline bale Processor, c/w twine cutter, always shedded .........................................$8,500 Cattalac #360 Mixer/feed wagon, scales, always shedded, like new ..................$14,000 New demo Outback baseline X ...................$6,500 New Outback S lite guidance ..............................$900 New Outback E drive X c/w free E turns ........CALL Used Outback 360 mapping................................$750 Used Outback S2 guidance ..............................$1,000 Used Outback E drive c/w valve & hoses...$2,000

Ron Sauer Machinery Ltd. (403) 540-7691 **Flexi-Coil, Westward MacDon Swathers, NuVision augers, Sakundiak, Farm King, Outback GPS Systems, EK Auger Movers, Sweeps, & Crop Dividers, Degelman, Headsight Harvesting Solutions** Sales Rep for George’s Farm Centre

ronsauer@shaw.ca

REAL ESTATE Houses & Lots 5/YR OLD 1400/SQ. FT. 2/bdrm bungalow, corner lot, in Coalhurst, Ab. all appliances included, fireplace, on suite in MB, double garage, no steps, covered patio, 12x14ft detached hobby shop, c/w overhead door, heated and insulated, small garden, Must be seen to be appreciated! Call for appointment weekdays only @ (403)327-6075. Available in the spring.

REAL ESTATE Mobile Homes

REAL ESTATE Farms & Ranches – Alberta

JIFFY 220 SILAGE FEED Wagon, always shedded, excellent condition, $5,000; (403)227-4403, Innisfail

200 COW RANCH, CYPRESS Hills area, 500 deeded, good crop & hayland, Chinook climate, 640 ac. Alberta lease, plus 2 separate grazing leases, good set buildings w/treed yard site, good water, gas well revenue, Must Sell, (403)937-3901

SHAVINGS FOR BEDDING BRITEWOOD Industries manufactures high quality pine shavings & super-compresses them into 4X4 bales. Call for truckload quotes or for a dealer in your area. www.britewood.ca. sales@ britewood.ca Tony (250)372-1494, Ron (250)804-3305

HERD BOOKS COW/CALF SOFTWARE for Canadian producers handles all CCIA forms 90 day trial. For details see www.herdbooks.com

MISCELLANEOUS WANTED WANTED SEED AND FERTILIZER boxes, from 14ft drill, could take the whole drill, (780)352-9956, Wetaskiwin, Ab.

QUALITY ROUND HAY, VARIOUS mixes, delivery or loaded, volume discounts, Premium oat greenfeed also available. (403)637-2258, Didsbury, AB. SMALL SQUARE BALES HORSE hay, Crossfield, Ab. 50/lb bales $3.00/per bale, (403)946-5481, (403)613-4570

TIRES FEDERATION TIRE: 1100X12, 2000X20, used aircraft. Toll free 1-888-452-3850

REAL ESTATE

5’X10’ PORTABLE CORRAL PANELS, 6 bar. Starting at $55. Storage Containers, 20’ & 40’ 1-866-517-8335, (403)540-4164, (403)226-1722

LIVESTOCK Livestock Services & Vet Supplies

Barb Wire & Electric High Tensile Wire Spooler

Matchmakers Select 1-888-916-2824 Customized membership, thorough screening process guaranteed service rural, agriculture, country, remote 12 yrs established Chemistry, Communication, Commitment www.selectintroductions.com

LIVESTOCK Livestock Equipment

STEWART HAIR CLIPPER; CIRCUITEER hog blower/ dryer; Calf puller; Burdizo, tatoo set, ear labeling tools; Scrotum tape; (403)227-4403, Innisfail, Ab.

Geared For The Future

Fun athletic, outgoing, a real go getter country gal. Loves horses, fine dining, travel, golf, enjoys the finer things in life as well as peace & quiet. At 34 this successful slim, fit, healthy, blonde with blue eyes & a Cover Girl smile is 5’7, 138lbs. A natural beauty is seeking an accomplished successful man, who is a farmer or rancher. A man who is seeking a life partner age 40-55.

1998 TRIPLE E MODULAR home, 3/bdrms, 2 full baths, walk in closet, 4 appliances included, very well maintained, great condition. (403)653-2166, (403)382-9452, Monarch area

LIVESTOCK Livestock Equipment

HAY FOR SALE, 2011, excellent quality, no rain, 1600/lbs, 70% alfalfa, 30% grass, (403)854-2240, 403-854-0420, Hanna, Ab. HAY FOR SALE, BIG JD bales, good quality, delivery available, first cut $34/ton, Oat greenfeed $34/ton New hay, 18.76 protein analysis done, $50/Ton (403)665-2341

HEAT & AIR CONDITIONING

The Icynene Insulation System®

SEED/FEED MISCELLANEOUS Hay & Straw

REAL ESTATE Farms & Ranches – Pastureland GRAZING LEASES FOR SALE, Parcel #1 is 885/ac & Parcel #2 is 965/ac North Eaglesham area, Call Paul @ (780)359-2261

SEED / FEED / GRAIN SEED/FEED MISCELLANEOUS Feed Grain BUYING ALL TYPES OF feed grain. Also have market for light offgrade or heated, picked up on the farm. Eisses Grain Marketing 1-888-882-7803, (403)350-8777 Lacombe. FEED GRAIN WANTED! ALSO buying; Light, tough, or offgrade grains. “On Farm Pickup” Westcan Feed & Grain 1-877-250-5252

NEW 20.8-38 12 PLY $866; 18.4-38 12 PLY $783; 24.5-32 14 PLY $1749; 14.9-24 12 PLY $356; 16.9-28 12 PLY $498. Factory direct. More sizes available new and used. 1-800667-4515. www.combineworld.com

TRAVEL

Agriculture Tours Ukraine/Romania – June 2012 Scotland/England/Wales – June 2012 2012 European Cruises – Call for Details Australia & New Zealand – Jan/Feb 2013 Tours may be Tax Deductible Select Holidays 1-800-661-4326

CAREERS CAREERS Farm / Ranch DON’T JUST VISIT, LIVE IT! Agricultural placements in EUROPE, UK, AUSTRALIA or NEW ZEALAND. Wide range of jobs (4-12 months) awaiting experienced individuals ages 18-30. Book an AgriVenture program now! www.agriventure.com 1-888-598-4415. Canadian farmers looking for extra hands are also encouraged to apply for international trainees.

CAREERS Help Wanted GRAIN FARM: F/T Must be seeding operations ready, GPS familiar & self motivated. Class 1 or intent necessary. Mechanics & grain experience are assets. Wage dependant on qualifications. (403)364-2129 fax resume (403)364-2004 masonfarms@netago.ca Delia, AB

CAREERS Employment Wanted EARN $75,000/yr PART TIME in the livestock or equipment appraisal business. Agricultural background required. Classroom or home study courses available. 1-800-488-7570

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Chinese premier wants to modernize agriculture and limit imports

Wen Jiabao says China must push forward with modernizing agricultural technology.

BEIJING / REUTERS China must push forward with modernizing agricultural technology as it faces increasing difficulty in meeting local food demand, Premier Wen Jiabao said in a recent essay. “The fundamental way out is to enhance the construction of modern agriculture to boost the complex agricultural productivity continuously,” Wen said in an essay released by the Communist Party’s influential magazine Qiushi, or Seeking Truth. The essay said the country must “give agricultural technology a more prominent status.” The agricultural sector faces challenges because of a shortage of land and water resources, rising production costs, labour issues, and pollution, Wen said. China will promote agricultural technology innovation, seed cultivation, mechanization, and

REUTERS

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further increase subsidies in the sector, especially for grain production, Wen added. Grain imports “must be put under control,” he said. The central government estimates that China’s national grain consumption will go beyond 572.5 million tonnes by 2020. Its grain output reached a record high of 571.21 million tonnes last year, up 4.5 per cent on year, the eighth year of growth in a row. Although China is largely self sufficient in wheat and rice production, it’s now the world’s top soybean buyer, taking around 60 per cent of global traded supply. In 2010, the country also returned to importing corn in earnest after years of blocking foreign grain, buying 1.57 million tonnes. The country is expected to triple corn purchases this crop year.

Farmers fear Europe to lose biotech expertise BIOTECH UNIT 

BASF moves its operations from Belgium to North Carolina HAMBURG/REUTERS Germany’s giant association of farming cooperatives said a decision by BASF to transfer its research into crops with genetically modified organisms from Germany to the U.S. and other countries will be “disastrous for Europe as a location for agricultural industries.” The German chemical company plans to move its biotech unit in Limburgerhof to North Carolina, some other research to Belgium and Berlin, and halt development and commercialization of all products targeted solely at cultivation in the European market. “Because of this development, I believe it is essential that a political and social climate is created in which biotech companies are not forced to transfer their activities abroad,” said Manfred Nuessel, president of cooperatives association DRV. Constant protests by opponents of GMOs over the years, including repeated destruction of fields with GMO crops in Germany, have caused great uncertainty about the future of such biotech crops, Nuessel added. BASF had received European Union permission in 2010 for commercial cultivation of its GMO potato Amflora, which is used for industrial starch production, not food. But in 2011, BASF said it planned to cultivate just two hectares of the GMO potato Amflora in Germany and 15 hectares in Sweden. EU policy on GM crops has long been politically fraught, with a majority of consumers opposed to modified foods, but the bloc relies on imports of about 30 million tonnes of GM animal feed each year. Several countries, including France and Germany, are imposing bans on cultivating GM crops despite EU safety approval.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

FIVE MODES OF TRANSPORT

Manitoba ranch big winner at U.S. bison event Bison Spirit Ranch of Oak Lake, Man. swept the Grand Champion and Reserve Grand Champion categories for bulls entered into the Gold Trophy Show at the National Bison Association annual conference in Denver, Colorado last month. High Country Bison of Austin Texas garnered the Grand Champion Female award for a two-year-old bred heifer, and Wichita Buffalo Co., of Hinton, Oklahoma earned the Reserve Grand Champion trophy for a yearling heifer. The association reports strong prices for breeding stock this year. Twoyear-old breeding bulls brought an average of $9,321 during the association’s Gold Trophy Sale, compared to the $6,650 average in 2011. Twoyear-old bred heifers averaged $4,050, yearling heifers averaged $2,856, and heifer calves sold for an average of $1,475. The animals entered into the special ranch-ready pen of five yearling heifers sold for an average of $2,950 per animal.

The annual Rimbey Sleigh, Wagon and Saddle Club cutter parade had 37 people taking part with their families and sleighs pulled by horses, miniature horses, mules, donkeys and a pair of hinnies. PHOTO: SCOTTY AITKEN

B:1

T:1

S:1

InVigorResults.ca

Sask. cattle producers to double checkoff STAFF / Members of the Saskatchewan Cattlemen’s Association have approved a plan to double the provincial checkoff on cattle sales to $2 a head. The decision came in a resolution passed at the SCA’s recent annual meeting, noting lobbying and marketing expenses continue to increase while the provincial checkoff hasn’t risen since 1987. Saskatchewan will be one of the last provinces to increase its provincial levy from $1 to $2, SCA past chairman Bob Ivey of Ituna, Sask. said. Alberta, Manitoba and Ontario doubled their provincial levies to $2 in 2004, 2006 and 2008 respectively.

Feed efficiency has jumped 40 per cent According to results of feed efficiency research projects funded by the Beef Cattle Industry Science Cluster, feed efficiency of Canadian cattle has made marked progress. Cattle that took three to five years to finish in the late 1880s now reach the same finished weights in less than 24 months. Feed conversion ratios have improved by 40 per cent between 1950 and 2001.

InVigor L130

54.5 bu./ac. O-66-01/12-BCS11026-E

17.4”

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

BASF asks growers for three-year commitment on lentils

Texas cattle herd — still big, much, much smaller

AGREEMENT  Growers need to submit only their Clearfield lentil acreage annually STAFF

n a revamp it says will simplify the process for Prairie farmers, BASF Canada has moved to a three-year “Clearfield commitment” producers will need to sign to grow Clearfield lentils starting this year. The new commitment, announced Jan. 26, essentially requires a grower wanting to seed Clearfield lentils to complete and sign a Clearfield commitment for lentils, which will remain in effect to the end of the 2014 growing season. Once they have signed their commitment, growers need to submit only their Clearfield lentil acreage on an annual basis. Growers can complete the form for their commitment at their local herbicide retailer, through their Clearfield lentil seed dealer

or online through the company’s Secure Grower website. Growers must also agree to “Clearfield-confirm” test all seed used in the production system for lentils, thereby ensuring the seed meets the required herbicide tolerances. The testing is done free of charge. “BASF Canada is committed to ensuring the Clearfield production system continues to be the best way to grow lentils,” Danielle Reid, the company’s associate market manager, said in a release. “Part of that commitment includes responding to growers who’ve asked us to simplify the process involved with growing them.” By signing the agreement, growers will have greater access to the AgSolutions rebate program, as well as product support from BASF Canada, the company said.

SLAUGHTER 

Southwest U.S. drought pushes beef cow figure up by 200,000 over 2010

51.8 bu./ac.

50.5 bu./ac.

BayerCropScience.ca/InVigor or 1 888-283-6847 or contact your Bayer CropScience representative. Always read and follow label directions. InVigor® is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

T:10”

B:10”

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he Texas beef cow herd is at its lowest level since 1960 after record drought forced ranchers to export more than 150,000 head of cattle to greener pastures in 2011, three times more the 45,000 in 2010, says a Texas AgriLife Extension Service economist. Texas, the U.S.’s largest beef cow-producing state, saw a decline in 2011, in the number of beef cows of 660,000, to 4.365 million head. “That’s the smallest cow herd since 1960,” David Anderson said. “This decline was fuelled by the drought, which left 2011 as the record-holding driest year on record in Texas.” Nationally, beef cattle numbers continue to decline to historic levels. The U.S. Department of Agriculture reported Jan. 1 cattle inventory for all cattle and calves totalled 90.8 million head, two per cent below the 92.7 million on Jan. 1, 2011. It is the lowest Jan. 1 inventory of all cattle and calves since the 88.1 million on hand in 1952, according to USDA. Slaughter numbers continued to escalate in 2011 due to drought, Anderson said. “The southwest region, which is Texas, New Mexico, Arkansas, Louisiana and Oklahoma, slaughtered almost 200,000 more beef cows in 2011 than the year before,” he said. “Nationwide, beef cow slaughter numbers were up 170,000 head. And also fewer heifers were held back to enter the cow herds due to the dry conditions. Each of these contributed to the Texas’s smaller cow herd.” Cattle prices are predicted to continue to be at all-time highs. Retail beef prices are expected to remain high as well reflecting less supply, according to economists. The USDA report revealed the national 2011 calf crop was estimated at 35.3 million head, down one per cent from 2010. USDA reports it’s the smallest calf crop since the 34.9 million born during 1950.

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FOCUS ON CORN

Silage corn growing spreading north NOT JUST FOR BEEF } Dairies are using corn silage as a main feed for their herds will add to the forage volume. Grain corn producers on the other hand will use lower CHU hybrids in the 2,100 to 2,300 CHU range to make sure the grain is filled and dry enough to combine in the fall.”

by Sheri Monk

af staff | pincher creek

omesticated long ago in prehistoric times, corn has had a long and fruitful relationship with mankind. Corn also has a history in Alberta, and it seems its profile will only grow in the future. “It’s gone way beyond Taber, and southern Alberta for that matter,” said Tom VanMoorsel, a Pioneer Hi-Bred agronomist. He says the crop’s expansion now includes even the Peace River Country. “Corn is now also successfully grown as far north as High Level, Fort St. John, and St. Paul.” For the uninitiated, cornfields may look generic and interchangeable, but the reality is that there are many different varieties and uses. Most Albertans are familiar with buying Taber sweet corn, harvested from 3,460 acres in 2011. In contrast, 70,000 acres of feed corn and 20,000 acres of grain corn were seeded last year in Alberta. VanMoorsel says about 60 per cent of the corn is planted south of and 40 per cent north of the No. 1 Highway. The new range of corn crops is a recent development. “Traditionally corn was only grown in the southwest corner of the province from the 1960s to mid-’90s and fluctuated between 15,000 and 30,000 acres. Those acres depended on irrigation and sufficient heat units to make the then available corn hybrids work,” VanMoorsel said. Advancements in genetics meant companies like Pioneer Hi-Bred and DeKalb could offer producers options which not only increased yield in traditional corn-growing areas, but actually greatly expanded seedable acres. “Since the mid-’90s the heat unit requirements of new hybrids has come down. The earliest hybrids now only need 1,800 heat

Some swath grazing

Sweet corn, silage corn and grain corn are now all successfully grown in Alberta. ©istock

“It’s gone way beyond Taber, and southern Alberta for that matter.” units for silage, or 2,000 heat units to make grain. An equally important fact is that about 10 years ago, herbicide-tolerant hybrids became available,” said VanMoorsel.

Silage dominates

Most of Alberta’s corn production is for silage, which is feed for either beef or dairy cattle. Corn’s use in the dairy sector has become much more common. “A major new corn area is the Red Deer to Westlock corridor,” said VanMoorsel. “They started feeding barley silage and they didn’t quite like it so they tried corn and it worked and they went from there. It was easier on the animals and their stomachs.” Silage corn is a wetter product than grain corn as well. “Silage corn, you want the whole plant, so you want it to be at a

good moisture level at harvest time. Usually people like it between 65-70 per cent moisture,” said VanMoorsel. Silage of course, is also used in beef feedlots as well. When it comes to finishing beef cattle however, barley may still be king, but corn accounts for just under 20 per cent of finishing in Alberta. Different growing regions require different varieties, and even the end-user of the silage will help determine what variety a producer chooses. VanMoorsel said that in the southeast from Taber to Medicine Hat and Vauxhall, Brooks and Rolling Hills area, dairy producers will use 2,200 to 2,600 crop heat unit (CHU) corn for silage, with the emphasis on starch and digestible quality. Beef producers can use slightly later hybrids which

The warmer the locale, the longer the growing season, and that ultimately means producers in those regions have more choice. “As you move west in southern Alberta, producers will use slightly earlier hybrids. In the south producers have the luxury of being able to select from a range of maturities and hybrids. Once you move north of Calgary it is still a somewhat ‘young’ corn area and the selection is much more limited,” VanMoorsel said. Swath grazing has received much attention in recent years, but innovative corn varieties are giving northern beef producers a new opportunity. “Some people in the Peace River area use it for silage, but in the north they started about 10 years ago grazing corn,” VanMoorsel said. “They would leave the corn standing in the field all winter, and just put the cows in the field, so it was kind of convenient. It’s really taken off and people are starting to make good money at it.” The corn itself helps to shield the cattle from the elements. However this practice does not work in warmer climes because the chinooks and warm spells really degrade the quality of the corn over the winter. The feeding sector has long pushed for investing in barley research, in part because of the strides made in corn varieties over the years. VanMoorsel says corn varieties will continue to progress in the future. “North America-wide, we see it probably advancing by about two bushels per acre, per year and that’s kind of a norm on account of genetic advancements.”

Grain corn poised to expand in Alberta BARLEY ALTERNATIVE } Grain corn can be

used in the Alberta feedlot industry by sheri monk

af staff | pincher creek

outhern Albertans may be able to brag about warmer winters than their Manitoba cousins, but summers are another matter. Grain corn has become a significant crop in southern Manitoba, but cooler summers in Alberta have limited area to about 20,000 acres. “Obviously it’s a smaller market than in Manitoba. You have to find an early variety that’s going to mature in that southern area south of Vauxhall,” said Harley Bell, account and product manager for Brett Young. “But we do have some earlier varieties that do have somewhat of a fit. One of the earliest grain corn varieties rates at 2,150 heat units for grain and that would probably mature in the area of where guys are looking at growing for grain in that south area.” Grain corn has to be drier than its silage counterpart, and thus, it grows better in different regions than silage. Bell says there’s a trade-off in finding those early varieties, but also getting them with characteristics for dry-down. “There’s pros and cons for each variety, it’s important for the grower to know what they’re comfortable with for risk and to pick a variety that’s going to yield well and have the plant characteristics that they’re looking

for,” Bell said. One consideration is resistance to corn borers, which are appearing in southern Alberta. There are GM varieties available from seed companies that have corn borer resistance. In Alberta, most grain corn is used in feedlots as part of the finishing regime for beef cattle, but it is used in the pork and poultry sectors as well. In the U.S. especially, grain corn is being raised for ethanol, which has resulted in driving up grain corn prices and tightening supply for the feeding sector. “If you go to southern Alberta and if you go to the east end, from Taber to Medicine Hat up to Brooks, there’s grain corn there. And that’s been grain corn there for probably 30 or 40 years,” said Tom VanMoorsel, Pioneer Hi-Bred’s agronomist for southern Alberta. “This year we had a yield contest in southern Alberta to try and push people to get higher yields and the highest yield was about 177 bushels of grain corn and that was in that Hays area, just north of Taber.” Alberta Agriculture says the combined average yield of all grain corn varieties in the province is 93 bushels, but VanMoorsel said the average in the south is 135-145 bushels. “Alberta has definitely been dominated by silage for many years, but we continue to see companies come up with earlier and better producing early grain varieties, so it’s going to be a bigger crop coming forward,” said Bell.

One of the earliest grain corn varieties rates at 2,150 heat units. file photo

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BY ALEXIS KIENLEN AF STAFF | EDMONTON

armers should know the requirements of processors in order to grow the best possible oat crop, says Dennis Galbraith, milling oat specialist with Viterra. Speaking to a recent Prairie Oat Growers Association meeting here, Galbraith said kernel quality is extremely important. Oats have a hull that is more loosely attached than a barley hull. The biggest difference between oats and barley is the tricome hairs around the side and the top of an oat. “It’s important for us to get all of these off, because people don’t want that in their food,” said Galbraith. For profitability, the amount of raw material used to make an oat product is important. “We don’t make anything on the value of the grain moving forward. We make our money by how efficiently we process,” he said. Profitability is defined by milling yield. In general, 100 pounds of raw oats will result in about 60 pounds of finished groats. “That means that about 40 per cent of what’s in a farmer’s truck or a farmer’s bin is actually byproduct to us,” Galbraith said. “We separate it out, sell it back for feed or put it out the back door.” The 40 per cent contains about 31 pounds of hulls and about seven pounds of screenings, which include weed seeds, broken kernels and oats too thin for processing. “Different varieties have different thicknesses of hull and the environ-

Pioneer brand CORn hybrids for Alberta

“Our feeling is that every part of the chain has to be making a margin, or some part of the chain isn’t going to want to play the game.” DENNIS GALBRAITH

have to buy more grain to meet the area you’re deficient in.” Grower acceptability is also important. “It needs to be a variety that works for growers because if it doesn’t work there’s no point in putting it out in the marketplace,” he said. Viterra is involved with the Prairie Oat Breeding Consortium and Galbraith sits on the board. “We try to find the best material coming out of that program and put it forward for registration,” he said. These varieties must meet requirements for both consumers and growers. “Our feeling is that every part of the chain has to be making a margin, or some part of the chain isn’t going to want to play the game.”

Viterra milling oat specialist Dennis Galbraith says Alberta growers have a better variety selection than their cousins in the eastern Prairies, where the crop is more prone to rust. But not all varieties are desirable for milling. Galbraith doesn’t want to see AC Mustang in the human food system. It has a large hull that doesn’t work well in mills. “It’s fine for feeding to cattle and gives you lots of roughage in the feed. It’s a great feed oat, but it’s not a milling oat and please don’t mix it in with milling oats,” he said. AC Juniper is also undesirable because the hull is too difficult to remove. Based on Alberta crop insurance data for 2010, the top three varieties were AC Morgan, AC Mustang and Derby. Morgan averaged about 38 per cent of the acres grown in both years, Mustang averaged about 12 per cent and Derby was about 24 per cent. Galbraith thinks Derby will eventually disappear, since it doesn’t yield as well. He said Leggett is an option to consider in Alberta. “There are some guys growing it in Saskatchewan and it does reasonably well. I don’t think it would yield as high as Morgan in Alberta but there might be some other attribute to it that you’d like,” he said. Two varieties that might soon be available include CDC Minstrel and CDC Morrison, both developed at the Crop Development Centre in Saskatoon.

proving ground.

AF STAFF | EDMONTON

mental conditions each year will determine how thick the hull is, even on the same variety,” he said. Oats lose about two per cent of their moisture during processing. Galbraith said processors must consider what their customers want — consistency, good nutritional quality, timely delivery, safety, good price and sustainability. “Customers want to know that the grain is grown in a sustainable manner, that it’s processed in a sustainable manner and that we’re shipping it to them in a sustainable manner. They haven’t come up with defining what the parameters are. We’re all in measurement stage trying to figure out what the benchmark is for what we do. As growers, you have to get used to the idea that sustainability is going to come up increasingly more often in conversations with your customers,” said Galbraith. In order to fit heart health claims, oat products must have a minimum of 10 per cent dietary fibre, four per cent beta glucan (a soluble part of dietary fibre) and a maximum of three grams of fat per serving. Yield of the crop and balance in the mill are also considerations for Galbraith when he is selecting varieties. “When we’re running our mill, we don’t make just oat flakes,” he said. “The process ends up with broken pieces everywhere so when we’re making oat flakes, we’re also making oat flour and oat bran. You always have a whole series of products being produced at the same time. The problem is the marketplace wants different percentages of different products. If the mill doesn’t meet that balance, you

Roundup Ready is a registered trademark used under license from Monsanto Company. All purchases are subject to the terms of labelling and purchase documents. ®, TM, SM Trademarks and service marks licensed to Pioneer Hi-Bred Limited. © 2011 PHL.

BY ALEXIS KIENLEN

BEST CROP  Processors need specific varieties for milling purposes

The

Know what your customer wants when growing oats

Three oat varieties tops with Alberta producers

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The Canola Council of Canada has begun a search for a new president and vice-president for crop production. The council is advertising with a Feb. 14 deadline for applications for the job of president, replacing JoAnne Buth, who was named to the Senate last month. The council is also seeking a replacement for its vice-president for crop production, Denise Maurice, who died suddenly Nov. 23. The council has named Scott Wolfe Management, an agribusiness planning firm at Headingley, Man., to conduct the searches.

 POSITIONS

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Poplar farmland lease opportunities Income } In addition to rental fees, owners can be paid for doing some of the work on the plantation Agri-News

Woodlots are any tract of land that contain areas of trees either naturally occurring or planted. Woodlots play a very important role in the Alberta agricultural landscape and are an integral part of the agriculture landscape. Today in Alberta’s agricultural zone, over three million hectares are forested land woodlots. This represents four per cent of the total forested land base in Alberta. Size of the woodlots varies from one to 1,000 acres with an average size between 60 and 100 acres. The Poplar Farm Land Lease Program, an initiative of Alberta-Pacific Forest Industries Inc. (Al-Pac), will partner with Alberta landowners to lease approximately 1,200 hectares (3,000 acres) between Edmonton and the boreal forest of northeastern Alberta. The initiative leases land within 200 km of the mill site and includes the planting of fast-

Using a fast-growing hybrid poplar tree, in combination with intensive management, a crop of trees can be ready to harvest in as little as 18 years. ©thinkstock growing hybrid poplar trees on these leased acres. “Poplar farming can provide long-term guaranteed income while maintaining the value of the land,” says Toso Bozic, woodlot extension specialist with Alberta Agriculture and Rural Development. “Poplar trees grow well in

most soils within this region of the province; however, lands that are salt affected, poorly drained or which have significant peat content may not be acceptable. Under Al-Pac’s Poplar Farm Land Lease Program, eligible farm sites would need to be a minimum of 16 hectares, which is 40 acres.”

As well as the annual rental fees paid on the 20-year lease agreements, there is potential for Alberta landowners to earn additional income by performing some of the work associated with the poplar farm. This would include site preparation prior to planting and maintenance after the trees are planted. Some established poplar farms are already widely scattered throughout northeastern Alberta. Poplar farms can represent a significant source of fibre. Using a fast-growing hybrid poplar tree, in combination with intensive management, a crop of trees can be ready to harvest in as little as 18 years. “The value of woodlots is often measured by the ability to produce forest products,” says Bozic. “Some estimates indicate that between 10 and 20 per cent of the timber supply in Alberta comes from privately owned land, which is $70 million to $80 mil-

lion per year in standing timber value. Other values which are only partially explored include diversifying rural and farm economies and the ability of woodlots to be a complement to crop rotation. “In addition to these direct economic values, there is a variety of indirect or non-market values that are provided by woodlots. For the most part, these values are enjoyed by others and not the woodlot owner. These values include the provision of habitat for wildlife, reduction of soil erosion, protection of watersheds, outdoor recreation and tourism opportunities.” Alberta landowners interested in this program can find out more information, lease conditions and possible lease revenue by contacting Tina Biro, land lease co-ordinator with Al-Pac at 1-800-661-5210, ext. 8339, or Mike McLachlan, maintenance co-ordinator with Al-Pac at 1-800-661-5210, ext. 8357. Information on this program is also available online at www.alpac.ca.

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Winnipeg-based machinery farm equipment maker MacDon Industries will be the manufacturer for several lines of self-propelled windrowers and mower conditioners to be sold worldwide under John Deere paint. U.S.-based ag and heavy equipment giant Deere and Co. announced a “strategic agreement” Jan. 27 with Winnipeg-based MacDon, allowing Deere to expand its hay and forage product portfolio globally. More details about the availability of products coming out of this agreement will be announced later this summer, the two companies said in a release. “After an in-depth evaluation of the global commercial hay and small grains industries, we determined that specific MacDon self-propelled windrower products would most effectively enable us to serve our customers and expand our overall product lineup,” William Norton, Deere’s vice-president for hay and forage equipment, said in the same release. The deal, he said, will allow Deere to expand its product line and “better serve our dairy, livestock, commercial hay, and smallgrains customers.” The deal calls for MacDon to manufacture select models of John Deere-branded self-propelled windrowers, including draper and auger headers, and pull-type auger mower conditioners. John Deere will also continue to manufacture select models of its own, the company said.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Spring fertilizer prices still up in the air WAITING GAME  Growers, retailers and suppliers are still waiting before making firm commitments BY MADELEINE BAERG AF CONTRIBUTOR | CALGARY

any farmers are apparently still taking the wait-and-see approach to their fertilizer purchases for the spring, hoping prices will drop. But, with strong demand forecast and no supply glut on the horizon, prices aren’t likely to go anywhere but up prior to planting, say some industry observers. “Everyone from dealers to brokers to farmers are a little gun shy from previous years. No one is keen to go out there and fill their shed, so to speak,” said Remi Schmaltz, general manager at Decisive Farming, a company that provides farm management solutions to growers in Western Canada. “But, I think overall the demand is just delayed. If anything, we’re seeing higher-than-average fertilizer consumption in the market. Prices should stay firm to slightly up as demand picks up as we get closer to spring.” “Canadian fertilizer manufacturers are predicting a very big year for fertilizer use,” said Brian Gross, manager of crop nutrition with UFA. He points out that canola prices are almost twice as high as they were three years ago and acreage is predicted to be up again this year. He said that generally, fertilizer prices are lowest in the fall, rise by about $80/ tonne by the spring, and then fall off through the summer months.

In 2011, however, prices started high in the spring, climbed through the summer and fall, and didn’t fall off until demand ground to a halt and the price bubble burst in December. Since then, prices have regained much of the ground they lost. The unusually low demand in December and January, however, means that many more growers are likely to be lining up to order their supplies in the coming months. “Because fertilizer sales were so slow in the fall and winter, they’ll have to sell a lot more in the spring even just to hit the volumes they sold last year. That’s really going to cause bottlenecks, and prices will probably go up,” Gross said.

Tight N supplies

The delayed demand, as well as the shutdowns of several local manufacturing plants and the fact that China reduced its year-over-year urea exports by half in 2011, means that the supply of nitrogen fertilizer will be fairly tight in Western Canada through the spring. “The main factor at this time that can drop local prices would be containment issues resulting in the manufacturer wanting to move tons so they can keep producing,” says Schmaltz. “But, we’ve seen that most of the local fertilizer plants in Western Canada have sold a very good chunk of their production from now until spring. They’re not hav-

ing any containment issues at this time at all.” Phosphate fertilizer prices are also strong and expected to remain that way. Phosphate supplies are controlled by a limited number of global players with finite supplies, who can strongly influence prices by cutting production when demand lags or prices soften, as Mosaic did recently. “Phosphate is fairly firm in price,” says Schmaltz. “There’s not much downside room for prices on it. But, there’s also no real reason for prices to jump, so farmers need to consider springtime logistics and carrying costs if they prepay for it.” Because of decreased natural gas production and the anticipation of increased canola acres, the sulphate market should be very tight this year, predicts Schmaltz. “I think it’ll be even tighter than what we’ve seen in the past few years, and the past few years have been tight. Sulphate is something I’d really encourage guys to look at locking up. It’s something you need to be ahead of the curve on.” Demand for liquid fertilizer should be strong as well. Because there are few players in the local production market and limited opportunities for imports, supplies will be tight.

Imports will be limited

Despite the fact that local supply is fairly tight, some producers are still hoping

U.S. or foreign imports will drop Canadian prices. That’s not likely, Gross said. “As it gets closer to spring, pay less attention to farther-away markets. To physically get a deal in place and move it halfway around the world, it becomes more of a theoretical impact on price, not actual.” Gross said that as spring comes closer, Canadian manufacturers will recognize retailers’ narrowing window for importing inputs, so will likely start asking a bit of a price premium. Delivery should also be top of mind. Given the high percentage of farmers who are waiting on buying, the likelihood of bottlenecks at the retailer is high. “I think there’s always a way to find urea. Are you going to have to wait in line? Will it be there when you want it? That’ll be hit and miss this year,” Schmaltz said. While the near-term price outlook is strong, the long-term outlook may be a different story. With fairly significant new phosphate and urea production expected to come online by the summer, prices may drop six months from now. “I think we’re going to see a correction in the summer months,” says Schmaltz. “This isn’t the year to be buying two years’ worth of fertilizer. I think we’re going to see some price movement in the summer, especially in urea.”

Expected high corn acreage in the U.S. and high canola acreage in Canada would mean strong demand for fertilizer. FILE PHOTO

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Rise aBove gRassy weeds look no FuRtheR than

laddeR

The real dirt on variable-rate technology VRT VARIABLES  There are a host of

soil-related factors that can affect yields, and your pocketbook BY ALEXIS KIENLEN AF STAFF | RED DEER

ariable-rate technology is based on a simple premise. “Basically, we’re aiming for the right rate at the right place in the field,” Ross McKenzie, a soil scientist with Alberta Agriculture, told attendees at the Agronomy Update event in Red Deer. That starts with knowing your soil, but that’s a lot harder than most people think, he said. “In my mind, we still have a fair ways to go to really be able to learn how to accurately prepare prescription fertilizer maps that will be economical for fertilizer on the farm,” he said. Variable-rate technology, or VRT, starts with the producer identifying unique areas of a field, taking soil samples, and then trying to determine the ideal fertilizer rates. But determining the different soil areas within the field, and deciding which soil factors to look at, is challenging. So is deciding how to manage fertilizers on these different soil areas, which is complicated because weather and growing conditions play such a huge role in yields. Producers don’t have a lot of control over soil-related factors, but they can apply proper fertilizers to adjust soil nutrient levels. “How do these areas vary across your field? Can you check for soil nutrient levels?” McKenzie asked. “This is the first thing I want to look for. The second thing is soil moisture content. How does soil moisture vary? Moisture is probably the biggest, most important factor in achieving optimum yield.” Other factors include salinity, soil organic matter, texture, chemical exchange capacity, pH, surface water drainage, and past history of erosion on a field.

Risks versus benefits

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Producers should also consider how much soil variability is needed to make VRT pay. “What are the risks versus the benefits?” asked McKenzie. “The benefits are obvious. If you can put on different rates of fertilizer and cut back on your fertilizer costs to increase your yields, then you’ve got it. But

VRT can be expensive. It can be anywhere from $3 an acre to $10 an acre.” The range of variability across a field is also a factor as changes in topography can affect optimum fertilizer rates. “The most important thing is to identify soil management zones,” McKenzie said. “One simple place to start is looking at topography and how soils change with topography.” Producers should try to remember yield patterns they have seen over the years. Soil and salinity maps are useful in this process, as are crop yield maps and satellite imagery. However, McKenzie said he prefers to examine the soil itself using ground truthing. Different parts of a slope have different soil properties. Upper slopes are characterized by thinner topsoil, and less soil organic matter which results in more soil crusting and reduced crop emergence. “It has less water-holding capacity, so after a significant rain, you might get a bit more run-off and less stored water,” said McKenzie. “Organic matter is a storage of nutrients, so if we have lower organic matter, we will have lower cycling of nutrients released for plant growth.” Upper slopes have higher soil pH levels. Lower slopes show almost the opposite characteristics of higher ones, with deeper topsoil, higher soil organic matter, better water infiltration, and a higher water table. Soil pH levels are much lower, which could result in salinity problems. All of these factors have a deep impact on yield potential. McKenzie’s advice to any producer considering VRT is not to do the entire farm right off the bat. Producers should use VRT on the fields that are the most varied, particularly in terms of topography, using yield and topography maps to determine slope positions. Then consider how nutrients such as nitrogen and phosphorus vary with slope positions, and how the moisture and salinity varies in different soil conditions. “Start simple,” said McKenzie. “If you’ve got 5,000 acres, don’t do all 5,000 acres. Start with a couple or three quarter sections. Start off slow and get a feel for it and develop a knowledge of what you’re actually doing.”

“Start simple. If you’ve got 5,000 acres, don’t do all 5,000 acres. Start with a couple or three quarter sections. Start off slow and get a feel for it….” ROSS MCKENZIE

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Do your research when choosing a micronutrient

ALBERTA CANOLA PRODUCERS COMMISSION DIRECTORS FOR 2012

BUYER BEWARE  Cost of product may well exceed actual benefit

BY ALEXIS KIENLEN AF STAFF | RED DEER

Be skeptical of hype about micronutrients and only use them when they make economic sense, says Rigas Karamanos, manager of Agronomic Solutions for Viterra in Calgary. “When a product is registered with CFIA, that means the company that sells the product bothered to do 12 experiments in Canada,” Karamanos told attendees at the recent Agronomy Update event in Red Deer. “Sixty per cent of them have to work. We’re talking about 12 experiments, in which seven showed a positive result.”

One new director was elected at the Alberta Canola Producers Commission annual meeting Jan. 24. Greg Sears of Sexsmith will represent Region 2. Colin Felstad, Elaine Bellamy and Jack Moser were acclaimed for a second three-year term. Back Row (l-r) Jody Klassen (chairmanRegion 6), Jack Moser (Region 11), Daryl Tuck (Region 4), Colin Felstad (Region 5), Raymond Blanchette (Region 3), Greg Sears (Region 2). Front Row (l-r) Marlene Caskey (Region 12), Terry Young (Region 7), Lee Markert (Region 9), Todd Hames (Region 10), Kelly McIntyre (Region 1), Elaine Bellamy (Region 8).

“Don’t trust testimonials because they are anecdotes. They are stories, not scientific data.” RIGAS KARAMANOS MANAGER, AGRONOMIC SOLUTIONS, VITERRA

Producers who want to find out if their micronutrient is registered can go on to the CFIA website and check the registered product list. But the key is that fertilizers need to be applied at the right source, in the right place, at the right time and at the right rate, said Karamanos, who participates in the annual Canadian Fertilizer product forum. “I stand on record in that particular forum as saying that all products are good, as long as they are used properly,” he said. He advised producers to ignore hype and see if there is scientific research done on the products. “Don’t trust testimonials because they are anecdotes. They are stories, not scientific data,” he said. Karamanos told his audience to remember that agronomic conditions vary by region, and a product that works well in one location may not in another. “Micronutrients should be used when their application results in an economic benefit to the farmer,” he said, adding those benefits have to be measurable increases in yield and quality.

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1/19/12 10:36 AM

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

NEWS Brothers offer No. 1 malt tip: Get a good drill BY KAILEN RENELLE KRAWEC

The Izyk brothers of Blackie, Alta. have been consistently growing malt-quality barley for 20 years using environmentally sustainable practices. “We always shoot for the malt market, and if we come up short then we’re in the feed market,” says Chris Izyk, who, along with his brother and farming partner Robert, devotes a third of the farm’s acreage to malt barley production. The Izyks plant certified AC Metcalfe seed as early as the last week of April. Prior to seeding, they do a preseed burn and always seed on canola stubble. They use a good broadleaf and wild oat herbicide tank mix targeting sound weed management. The brothers use a four-crop rotation of canola, wheat, barley and peas, and never plant barley on barley in order to keep disease in check. “We’ve straight combined as long as I can remember, even before it became in vogue for combine people,” jokes Chris. “That was always the key, my dad used to do that, and it generally brings a much higher quality.” Chris and Robert’s No. 1 tip: Get a good drill.

“You get even emergence — with the one pass, with the right drill, you’re going to maximize your soil moisture and get an even crop, even germinations, so that when it comes time to harvest it, you’re not dealing with an uneven crop,” explains Chris. “You can get in and straight combine, and it just makes everything easier, which leads to higher quality and better yield.” In the past 20 years, the brothers have had malt-quality barley selected 90 per cent of the time. This may explain why their nominating company, Rahr Malting, wanted to recognize them for their commitment to the barley, malting and brewing industry. It also explains why these brothers at the grassroots of the value chain are so exceptional. “Rahr Malting likes to consider growers in their direct barley program as partners in a business relationship,” explains Kevin Sich, manager of the grain department for Rahr Malting. “We want to align with growers who take growing barley seriously and want to be successful.” Responsible stewardship of the land is important to the Izyks, who have completed the environmental farm plan program. “Respecting the land and environment is No. 1 in our operation and should be passed on to future generations,” says Chris.

HOOF TRIMMINGS COMING UP

Farrier Steve Bennett of Blackie, Alta., tends to the hoof of Lucy the mule, while the farm dog waits for a trimming treat. Dogs love to chew and eat hoof trims. PHOTO: WENDY DUDLEY

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ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

ESN, urea or a blend?

Researchers trying to answer complicated question INQUIRING MINDS } Detailed, four-year study measured the benefits, and drawbacks,

of nitrogen options under a wide variety of conditions af staff | red deer

SN? Urea? A blend? Which is best for your crops? That may depend where you

live. ESN is a polymer-coated urea product that releases the fertilizer over time, and new research suggests local matters when it comes to using it. “Once (ESN) is put into the soil, water moves into the granule, dissolves the nitrogen and it is released into the soil,” Alberta Agriculture’s Len Kryzanowski told attendees at this year’s Agronomy Update event in Red Deer. “This is very heavily dependent on temperature and moisture, which are the same conditions that affect crop growth. In theory, it should sync the availability of the nitrogen with the crop demands.” But does it? That was one of the key questions of a four-year study that sought to evaluate urea, ESN and a blend based on crop growth and yield. Researchers wanted to discover the optimal situation for the use of each fertilizer, based on spring or fall applications, moisture conditions and crop. They also wanted to determine the best regions for use of the three products as well as agronomic rate limits for ESN and urea to reduce seedling damage.

“What we found was about 40 per cent of the time, you’ll see an economic response on barley and wheat when you use ESN.” Len Kryzanowski

LIGHT YEARS AHEAD

Researchers compared ESN, urea and a blend of 25 per cent urea and 75 per cent ESN, fall versus spring application, and banding versus seed placement. Wheat, barley and canola were used throughout the study. Fertilizer was applied at rates of zero, 30, 60, 90 and 120. “You’ve got quite a complex design of treatments, but these are the common decisions that a farmer will have to make when he is using fertilizer products, so it makes sense to do these comparisons,” said Kryzanowski.

Moisture effect

The nine research sites (Beaverlodge, Barrhead, Bow Island, Lacombe, Vegreville, High River, Gibbons and Lethbridge — irrigated and dryland) and all were continuously cropped or stubble fields. Researchers carefully noted dates for heading, emergence, maturity, and plant counts at the two-leaf stage. After harvest, factors such as per cent grainmoisture content, grain yield, weight, thousand kernel weight and kernel plumpness were analyzed. Soil and precipitation information was also collected, and the nitrogen left after cropping was measured to gauge the potential for leaching. “High River was a high-moisture situation,” Kryzanowski said. “You got an excellent response to added fertilizer, whether it was ESN or urea. There were some indications that there was some damage to the crop, especially the wheat with seed-placed urea. “In comparison, Beaverlodge had drier conditions, much lower yields, and the response to added fertilizer was in the opposite direction. As you increased the fertilizer, the yields were starting to go down. We’re starting to see less response for fertilizer application for all three crops.” In moist conditions, protein levels in the grain and seed were found to increase with the addition of fertilizers. “In some cases, you could see better responses with urea and fall banded versus spring and fall applications,” said

Kryzanowski. “You have a whole mixture of responses that are occurring here. That’s the challenge in trying to sort out the information.” Beaverlodge, with its low moisture, showed higher levels of grain protein than High River. “Even though you have lower moisture conditions, your response in regards to the protein level is actually increasing,” he said. Seed-placed urea product caused seedling damage and decreases in plant population at the High River site. However, this did not cause a reduction in yield, indicating the ability of the crops to compensate for the loss. Beaverlodge showed a greater rate of seedling damage, particularly when urea was seed placed next to canola. “This also reflected low productivity,” said Kryzanowski. “We’re below the threshold in terms of having an adequate amount of plant population to grow a sustainable yield. One of our challenges is going to be to identify these thresholds in terms of plant numbers, populations, and product.” There was a significant yield response to nitrogen from the majority of sites and crops and significant protein response and nitrogen rate for all southern sites and crops. Yield and protein response to fertilizer varied by region and crop. Seed-placed urea caused the greatest seedling damage to wheat and canola, followed by barley. Blending ESN and urea allowed for good nitrogen rates without seedling damage for most of the sites. Seed-placed ESN allowed for high rates of nitrogen to be applied with the crop and banding with ESN maximized the slow, gradual nitrogen release.

The bottom line

Researchers completed a simple economic analysis to compare the various treatments. “What we found was about 40 per cent of the time, you’ll see an economic response on barley and wheat when you use ESN,” Kryzanowski said. “Canola is a bit better and you’ll see an economic benefit about 60 per cent of the time.”

PROTINUS® seed-applied fertilizer delivers a nutrient boost that gives you faster emergence, larger seedlings and bigger roots. And a stronger start means you can look forward to stronger results at harvest. Use the technology that’s light years ahead. Ask your retailer for PROTINUS or visit PROTINUS.org.

Len Kryzanowski says the variability of response makes it hard for researchers to determine or predict best products or applications. photo: Alexis Kienlen Rates and benefits vary by different areas of the province. “Variation between sites, in sites and among sites was high and there was some indication of regional differences,” Kryzanowski said. The variability of response makes it hard for researchers to determine or predict best products or applications. “We have a big challenge ahead of us in terms of trying to use this information,” he said. Since ESN is a slow-release fertilizer, it has the ability to reduce nitrate emissions and minimize leaching. N2O emissions varied greatly during the year. Spring thaw is a critical time in terms of nitrous oxide loss. “Any time we have fall fertilizer application, we’re going to see high N2O emissions coming off in the springtime,” Kryzanowski said. Going from a fall urea to a spring urea resulted in a reduction of 65 per cent of nitrous oxide emissions, and going from fall urea to spring ESN also greatly reduced emissions.

©2012 Wolf Trax®, Growing Forward® and PROTINUS® are registered trademarks of Wolf Trax, Inc. Not all products are registered in all areas. Contact protinus@wolftrax.com for more information or call 1-855-237-9653. 17842 AFE

by alexis kienlen

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Growing consistent-quality malt barley in two provinces Frank Hamel, who farms at Olds, Alta. and Outlook, Sask., is one of 15 growers recognized for malt barley quality under this year’s industry-sponsored Elite Barley recognition program. Here he describes some of his techniques. Interviews with all 15 growers are available at www.elitebar ley.com. BY MAEVE O’ROURKE

rank Hamel of Hamel Farms Ltd. is nominated as an Elite Barley grower for his consistent delivery of high-quality malt barley. With a farm in Olds, Alta. and another in Outlook, Sask., he deals with two completely different soil types, weather types and altitudes. Yet the quality of barley from both areas is top notch every year.

What’s his secret? Hamel seeds early, harvests at 15 per cent moisture, and aerates. He has been farming in both regions since the late 1970s, growing malt barley after canola on the rotation over and over. Hamel has figured out the differences in crop maturation between regions. He swaths his barley in Alberta and straight cuts it in Saskatchewan. With cooler weather and higher altitude at the farm in Alberta, crops don’t always mature evenly. Getting the grain off as soon as possible helps him beat the frost in Alberta. The use of aeration bins helps to dry the barley down and this proves to be a method that maintains quality year over year. “My biggest challenge is harvesting 2,000 acres of barley before the rain comes,” says Hamel. “If the grain sprouts, we will lose qual-

“We use a little bit higher of a seeding rate. We seed about 130 pounds per acre, that’s about 30 per cent higher than average.”

BY GEOFF GEDDES

FRANK HAMEL

ity. We start combining at 16 to 17 per cent moisture and then put the barley in aeration bins, which gives us a big advantage. This way we don’t have to wait until the moisture drops down to 13.5 per cent and then face combining all of the acres of malt barley at once.” Hamel works directly with the maltsters to determine the variety of barley they need. The last two years, he’s grown about 75 per

cent AC Metcalfe and 25 per cent Newdale. “We use a little bit higher of a seeding rate. We seed about 130 pounds per acre, that’s about 30 per cent higher than average,” says Hamel. “We don’t seed on rows. We spread quality seed on full width with very narrow spacing and, somehow, we find that protein levels are decreased doing it this way.”

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f Mike Vavrek’s life was a musical, the theme would be “Takin’ Care of Business.” On his farm near Sexsmith, Alta., he devotes 40 per cent of his crop, and considerable time and energy, to growing malt barley. So it’s no wonder that Viterra nominated him as an Elite Barley grower once again. In addition to his wellorganized malt production system, Viterra noted Vavrek’s flair for innovation and attention to detail. Vavrek’s quest for quality starts early, with seeding from May 1-15 at 2.5 bushels per acre. The tendency of malt to ripen earlier than other crops is a big part of its appeal, giving him a head start on the harvest each year. After experimenting with different varieties, Vavrek chose CDC Copeland for its higher yield, better standability, and tendency to shell out less often than other two-row barleys. He soil samples in the fall and carefully selects his fields to ensure even land and drainage before seeding his barley in the spring. While it isn’t cheap, Vavrek says that “With the high cost of fertilizer these days, the $100 price tag for a soil sample is money well spent.” Vavrek straight cuts his CDC Copeland, and with early seeding it helps mature the crop by late August so the green seed count is minimal. He starts combining at 16.5 per cent moisture so as not to crack and peel the kernels, and gets registered seed every two years because he feels that “quality seed is crucial to success.” As he harvests, he samples each truck, keeps representative samples of the bins and labels the pails appropriately. He always keeps the barley in aeration bins unless it is lower than 13.5 per cent moisture. Young farmers would do well to emulate Vavrek. Although he is no stranger to technology, he is quick to stress the importance of that personal touch. “Dad would often jump out of the tractor and check for accurate seeding depth,” says Vavrek. “Machines are great, but they’re no substitute for a well-trained eye.”

“With the high cost of fertilizer these days, the $100 price tag for a soil sample is money well spent.”

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Working smarter and harder sets barley grower apart

MIKE VAVREK

2/1/12 10:14 AM

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

When cost is no object, things get weird EU BEEF  Brussels subsidizes production, but so does off-farm income in Canada BY DANIEL WINTERS STAFF

hat happens when cost of production is removed from the equation in beef ranching? The results can end up being bizarre, said Bart Lardner, a research scientist at the Western Beef Development Centre in Lanigan, Sask., who recently visited beef operations in Finland. In that Scandinavian country, which lies north of 60 degrees latitude, European Union regulations dictate how long cattle can be out on pasture, what kinds of facilities they can be housed in, and a myriad of other rules that make beef production “unbelievably expensive.” In return, the “frustrated dairy producers,” who keep their animals in barns nine to 10 months of the year, receive subsidy payments to keep their operations afloat. “A lot of the young producers said, ‘We wish those regs were not there. We wish it was a free-enterprise system,’” said Lardner, who was invited to tour their operations and offer constructive criticism. “My criticism was too much concrete, too much steel,” he said. “You guys have to start thinking outside the box here.” At one point, he stood in a barn, which they called a “feedlot” and watched as 200 intact two-yearold males attempted to ride one unlucky bull. Regulations didn’t

allow the owner to castrate his calves, while forcing him to spend more than $500,000 on steel and concrete. Well-meaning bureaucrats in Brussels had forked over 65 per cent of that cost in support payments, said Lardner. In the EU, the packers control how farms are run, he added. “They want big cows, big carcasses, no fat, no marbling — no eating experience,” said Lardner.

Also a subsidy

While Canada doesn’t have those sorts of subsidies and a much less burdensome regulatory environment, on some ranches, a wife working in town helps to prop up operations that perpetually bleed cash through wasteful practices, he said. And instead of bureaucratic “diktat,” coffee-row gossip rather than science remains the source of information for some, he said. “You can’t manage what you can’t measure,” said Lardner, who bases his research on work with a herd of 300 Black Angus cows on 2,000 acres of mostly improved forage, and 400 acres of cropland at the Western Beef Development Centre. Winter feeding costs are key in Canada, he noted. In 2010, beef economics benchmarking work conducted by the centre and using real data gathered from Saskatchewan ranches pegged winter feeding costs at 71 per cent of the $533 cost of raising a calf. Winter feed and bedding for the mother cow amounted to $381.

CCA PRESIDENT HONOURED BY GOVERNOR GENERAL

Canadian Cattlemen’s Association (CCA) president Travis Toews was one of 60 Canadians who received the Queen Elizabeth II Diamond Jubilee Medal from Governor General David Johnston at a ceremony at Rideau Hall Feb. 6. Toews was recognized for his “dedication to the field of agriculture, and for his support for farmers and cattlemen.” Toews, along with his wife Kim, run Melbern Holdings, a cow-calf and backgrounding operation, near Grand Prairie, Alberta.

While Brussels might be worried that cows suffer from the cold and wind, Canadian ranchers use drylots because cows will need more feed to stay in condition when exposed to the elements. There’s some truth to that, said Lardner, noting that a cow in good shape can stand the cold, but a 20-kilometre-an-hour wind will “peel the backfat off in a week.” The solution is natural shelterbelts, tree lines, and where those don’t exist, portable windbreaks. For managing cattle movements, there are solar-electric fencers and frost-free watering systems.

Government grants can be used to reduce the cost, he added. Feed testing is cheap and can save thousands over a winter. Producers may be concerned about protein content, but energy is the top concern in winter feeding, said Lardner, who urged producers to search for the best, cheapest supplement. For example, last year in his area abundant rainfall sent hay yields soaring. Hay was big in volume, but low in quality, and many ranchers who skipped feed testing were surprised to find their cows in poor condition as calving season drew near. Swath grazing is one way to put the “four-legged manure spreaders”

to work. But he advised ranchers to have a “Plan B” — the drylot pen — in case Mother Nature sends freezing rain or blizzards. Reduced costs of in-field wintering have captured the attention of big operators such as the massive 28,000head Poundmaker feedlot near Lanigan. Faced with $4 barley and $7 corn, Poundmaker has lately been trying to put on pounds by backgrounding stocker yearlings using cheaper infield feeding and then finishing them on high-cost, grain-based rations for shorter periods. “The high cost of gain in a drylot is forcing us to look at extended grazing systems,” he said.

The straight poop on beef manure types A study at the Western Beef Development Centre looked at Russian wild rye pasture response from three different types of manure, raw from a drylot system, and leftovers from bale grazing and bale processing 64 cows on the field. Soil samples prior to application were taken to ensure a level playing field. “There was no difference between the check and where we put the nutrient out with the manure spreader,” said researcher Bart Lardner. “That’s because most of the nitrogen had left the manure pile.”

Where the cows had done the spreading, under the onfield systems, there was 250 per cent more ammonium and nitrate nitrogen. The reason? “We were capturing nitrogen from the urine,” he said. Nitrogen is excreted mainly in the form of urea in a beef cow. In the summer warmth, the urease enzyme becomes active and converts it to a form plants can use. Pasture regrowth where the cows wintered was “phenomenal” at 2.5 times as much yield

as the drylot manure and control strips. Lardner’s colleagues looked at how much nutrient was captured from the “fertilizer bales.” They found that 34 per cent of the nitrogen and 22 per cent of the phosphorus in the round bales showed up in the pasture the following year under in-field bale grazing and bale processing wintering systems. With the drylot manure scooped out of the pens, only one per cent of the N and three per cent of the P remained.

Part of your well-balanced farm business.

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Study determines effect of global warming on wheat yields senescence } Temperatures above 34 C accelerate aging of the wheat plant Learning to adapt

By David Fogarty singapore/reuters

Extreme heat can cause wheat crops to age faster and reduce yields, a U.S.-led study shows, underscoring the challenge of feeding a rapidly growing population as the world warms. Scientists and farmers have long known that high heat can hurt some crops and the Stanford University-led study, released on Jan. 30, revealed how the damage is done by tracking rates of wheat aging, or senescence. Depending on the sowing date, the grain losses from rapid senescence could reach up to 20 per cent, the scientists found in the study, published in the journal Nature Climate Change. Lead author David Lobell and his colleagues studied nine years of satellite measurements of wheat growth from northern India, tracking the impact of exposure to temperatures greater than 34 C to measure rates of senescence.

Wheat is the world’s second-most-produced crop after corn. file photo They detected a significant acceleration of aging that reduced the grain-filling period. The onset of senescence imposes a limit on the time for the plant to fill the grain head. “What’s new here is better understanding of one particular mechanism that causes heat to hurt yields,” Lobell told Reuters in an email. He said that while there had been some experi-

ments showing accelerated aging above 34 C, relatively few studies considered temperatures this high. “We decided to see if these senescence effects are actually occurring in farmers’ fields, and if so whether they are big enough to matter. On both counts, the answer is yes.” Climate scientists say that episodes of extreme heat are

becoming more frequent and more prevalent across the globe, presenting huge challenges for growing crops. Wheat is the second-mostproduced crop in the world after corn and the United Nation’s Food and Agriculture Organization says global food production must increase by 70 per cent by 2050 to feed a larger, more urban and affluent population.

Lobell said his team’s findings could help refine steps to adapt crops and growing times as the planet warms. “Heat-tolerant varieties will be key. Whether this means faster growing in order to escape extreme heat, more capable of coping with extreme heat, or a combination of both is hard to say,” he said. “One challenge with sowing earlier is that there is a summer crop, usually rice, which has to be harvested before wheat is sown. That is why in many places wheat is actually sown well after the optimum window climatically.” Lobell said extreme heat wasn’t the only reason for lower yields. “But in hot places it is important enough to be among the top few reasons for why heat hurts,” he added. A 2010 study by scientists in Australia found wheat output fell by up to half during a growing season where temperatures were 2 C higher than average, with much of the losses caused by temperatures above 34 C.

Report claims ethanol adds $130 million to livestock feed bill 4188-3C

FEB. 13, 2012

SYNGENTA

winnipeg / reuters CRUISERMAXX PULSES AD

The George Morris CenEXPRESS tre isALBERTA callingFARMER on the federal government to curb CHRISTINE its support or eliminate for ethanol production • because it is pushing up feed grain prices. 8.125" X 10" Ethanol has boosted feed 240% grain prices by $15 to $20 per tonne in Eastern Can________________ ada and by $5 to $10 in the ________________ West, said a report issued by the centre. The result _ ________________ is added costs to livestock __________________ farmers amounting to $130_ million per year, the report said. “Everybody says, ‘Oh Canada doesn’t set the global prices for grain, we’re a small player,’” said Kevin Grier, senior analyst at the George Morris Centre in Guelph, Ont. “The whole focus is to try and show that... ethanol does have an impact. Canada’s policies do matter (to grain prices).” Ethanol makes up a small portion of demand for corn and wheat and the report overstates its impact on prices, countered Tim Haig of the Canadian Renewable Fuels Association. “Does it have zero impact? That would be naive. But it’s minimal,” Haig said. “We believe this (impact) is wildly overstated.” Ottawa and the provinces spend about $250 million annually subsidizing ethanol, according to the centre, and federal rules require gasoline pool to contain an average of five per cent ethanol.

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4188-3C_SYN_CruiserMaxxPulsesAd-AlbertaFarmerExpress.indd 1

1/18/12 2:41 PM

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Renowned expert says think like a cow when handling cattle COW SENSE  Short chutes, yappy dogs, and not recognizing danger signs are all no-nos in Temple Grandin’s book

BY ALEXIS KIENLEN AF STAFF | OLDS

earning how to use a cow’s natural tendencies to improve handling takes time, but it’s a skill that can be learned. “Good cattle handling is going to require a lot more walking,” Temple Grandin told attendees at a recent livestock-handling seminar at Olds College. People make a lot of mistakes when handling cattle and designing facilities, said the renowned animal science professor from Colorado State University. Common mistakes include having too many cattle in a corral at one time and using poorly designed chutes. Many of Grandin’s cattle-handling systems use a half-circle in their design because cattle like to return to where they have come from. Cattle also have a natural impulse to follow other cattle, so you don’t want a cow to exit the chute before the next one starts in. “One of the worst design mistakes you can make is to have a single-file chute that is too short,” she said. “This makes it impossible to use following behaviour.” Knowing a bit about cow psychology alerts you to problems, such as the lone animal which becomes distressed when separated from the herd. These are the animals that cause the most injury to humans. Animals raised without a social group can also become dangerous. Dairy bull calves are a prime example of this, and it’s preferable to raise them in a group as they are less likely to be aggressive. “You want bulls growing up knowing that they are cattle, so they don’t view people as rivals for mates,” Grandin said. Grandin said she does not like dogs around cattle chutes as it teaches cattle to kick. When people are

working on a calf, they should let the mother see what’s happening. Ideally, cattle should be accustomed to people on horses and people on foot, as they see them as two different things. Cattle moved by trucks or four-wheelers should be introduced to these kinds of machines and become accustomed to them. “We’ve got to have manners and control things. We don’t want cattle racing to the feedyard,” she said. Grandin spoke about Albertan Dylan Biggs, and his low-stress handling techniques. “One of the basic principles is that you move inside the flight zone in the opposite direction of desired movement,” she said. “If you’re outside the flight zone, you move in the same direction as the desired movement. “If you want to slow cattle down, you walk outside the flight zone in the same direction. If you want to speed them up, you walk inside the flight zone in the opposite direction. You cross the point of balance. When they’re out in the pasture, that’s going to be just past the eye, rather than the shoulder.” Walking back and forth on the edge of the flight zone can cause cattle to bunch up. Stragglers should never be chased. “Use the motion of the herd to bring those cattle in,” she said. And don’t circle around cattle. “You want to try to go perpendicular to the direction of movement,” she said. “When they start to go where you want them to go, back off! Don’t just keep pushing them.” Cattle need to see where they are going, which makes dead ends in chutes a bad idea. “If you bend too sharply, that will not work,” she said. “That’s one of the worst mistakes you can make,” she said. The event was hosted by the Foothills Forage and Grazing Association and Mountain View County.

MR. BEAN COMES TO WINNIPEG

As part of their efforts to attract attention to the health value of pulse crops, scientists at the Canadian Centre for AgriFood Research in Health and Medicine (CCARM) at St. Boniface Hospital Research Centre in Winnipeg asked for help from their Communications and Media Services to make a portrait of British actor Rowan Atkinson’s character “Mr. Bean” — from beans. Atkinson’s management company approved use of the image, and asked for permission to add it to their Facebook page. A video on the image and promoting the health benefits of beans is at ccarm.ca.

“Good cattle handling is going to require a lot more walking,” Temple Grandin told attendees at a recent livestock-handling seminar at Olds College. PHOTO: ALEXIS KIENLEN

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Beef-grading agency expects more technology to be adopted CBGA  The general manager reports on activity

in 2011 and on plans for improvements in 2012 At the beginning of last year, predictions for 2011 were that our GENERAL MANAGER, graded numbers would be about CANADIAN BEEF GRADING AGENCY two per cent lower than 2010. It turned out to be much less, as much he year 2011 will go down as 10 per cent lower. This meant in the record books of managing revenue with expenthe Canadian Beef Grad- ditures got a bit tight, but luckily ing Agency (CBGA) as a year of the cost-recovery structure of the change. The number of feder- CBGA helped avoid major deficits. ally registered packing houses The only sources of revenue for the in Canada that slaughter and CBGA are grading and certification grade beef continued to decline. fees, and since 1996 these revenues Of particular note in 2011 was the have the not-for-profit gradSEC_MIDGE11_T_AFE.qxd 1/5/12 2:24made PM Page 1 closure of XL Beef Calgary. ing agency self-sufficient. BY CINDY DELALOYE

About 10 per cent fewer carcasses were graded in 2011.

The highlight of 2011 had to be the implementation of technology as a tool for beef carcass grading at XL Beef Lakeside. Technology has been in the wings since the approval of CVS (computer vision system) in June 2002. Since then there have been many improvements and a new manufacturer known as “e plus v” have entered the vision technology scene. Despite the fact that the technology is installed and being used internally by the major packers with moving rails in cool-

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ers in Canada, the first and only (to date) packer to request its use for the assessment of the Canada grade was XL Beef Lakeside in August 2011. Final approval at XL Beef Lakeside was achieved on September 19, 2011 and the technology has been facilitating the grade assessment without a flaw since that time.

Greater consistency

The CBGA is anxiously awaiting other facilities with the technology installed to request its use for the assessment of the Canada grade to provide more objective and therefore greater consistency across Canada. Graders are still involved in the grading process. They must ensure that regular system checks are performed on the technology. In addition graders must assess other quality characteristics that the technology has yet to address, such as physiological age, sex, carcass conformation, and fat and lean colour all of which are part of our current grading regulations. Graders are also responsible for the accuracy of hot carcass weight, grade stamping, and labelling of boxed beef. All these items ensure quality and consistency, not just of the grade application, but consistency of the grade and its use in the marketplace. Graders on behalf of CBGA also provide third-party certification for branded beef programs. The assessment of colour of lean for determining dark cutters, or B4s, was improved in 2011 with the introduction of a standardized colour chit for reference to establish the break point between dark- and brightcutting beef. Prior to January 2011, colour assessment was more subjective and based upon an individual grader’s interpretation of dark versus bright. Comparing statistics year to year on B4 incidence is a risky business because there are so many variables that can influence the data, most notably extreme weather fluctuations and the ratio of heifers to steers in the slaughter mix. However, using the data GRADING

A slight increase in grading fees in the majority of the market means pennies per head, not dollars like checkoff programs or SRM costs, and the grading cost is a user-pay fee, not borne by the entire industry.

available and comparing 2010 to 2011 (the year of implementation of the colour chit as our reference standard), the total number of B4s has declined by 18 per cent.

Slight fee increase

What does 2012 hold in store? Hopefully, more activation of technology as a grading tool in other facilities and new advances in technology for other aspects of grade assessment. Unfortunately, due to declining slaughter volumes there might be a slight increase in grading fees to ensure full cost recovery. A slight increase in grading fees in the majority of the market means pennies per head, not dollars like checkoff programs or SRM costs, and the grading cost is a userpay fee, not borne by the entire industry. The accuracy and timeliness of the weekly slaughter and grading reports the CBGA produces for the industry is critical. This data is widely used by industry partners such as CanFax, Markets Information Services Branch and Statistics Canada in their market reports and analysis. The CBGA continues to take a great deal of pride in the ability to provide cost-effective, consistent and efficient delivery of the Canadian Grade Standard which is at the heart of the Canadian beef advantage.

2012 OUTLOOK

Newsworthy items on the grading front in 2012 may be: • The current drive to adapt U.S. yield algorithms. • Rumblings about dissatisfaction with Canadian dark-cutting regulations versus the U.S. • Export of high-quality beef to the EU requiring it to be graded by “an employee of the government.”

• Frustration with bison exports to the EU and the definition of quality versus our regulations. • Technology or equivalency of grading for small-volume plants. • The unintended impact of federal government withdrawal from current federal domestic inspection on grading.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Alberta rancher taking the cattle by the Longhorns iN DEMAND } Ponoka rancher Mark Stewart can’t keep up with requests for breeding stock by alexis kienlen af staff | ponoka

“I get at least one phone call a week from people inquiring about breeding stock or just wanting to know more information about them.” Mark Stewart

many and are hoping to ship more in 2012. They have done all the testing and certification, and run their ranch without using chemicals. “I’ve bought many animals this summer because I couldn’t supply my markets,” he said. “I could have sold twice as many as I did. Mark Stewart and his favourite Longhorn cow. He says the animals are We’re selling them faster than weT:8.125” intelligent and easy to handle. Photos: Alexis Kienlen can reproduce them.”

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Texas Longhorns might have the reputation of being rowdy rodeo cattle from the south, but Mark Stewart says that in reality, they’re hardy, docile animals that are a good fit for Alberta’s climate and landscape. Stewart switched from Angus to Longhorns in 2005 and currently runs 148 head, in addition to bison and elk. He said the animals have many attractive qualities and are the most docile breed of cattle he has ever worked with. “You never have any calving difficulties. I’ve never pulled a Longhorn calf,” said Stewart, who calves in April. He says working with Longhorns is not that different from working with hornless cattle. “It’s amazing,” said Stewart, who with wife Tina, operates MST Longhorns near Ponoka. “I have a steer that’s 97-3/4 inches in horn length from tip to tip and he can work through a four-foot door. They know how to move their horns and everything.” The Stewarts have created a multi-faceted business with many revenue streams, including lean meat sales, rodeo rentals, and breeding stock sales. There’s also a market for skulls and hides for southwestern décor. Skulls can range in price from $250 to $400. The Stewarts say Longhorns make great rodeo calves because they are hardy and have a lot of endurance. They rent some of their steers for roping stock, and then take them back for use in their meat market. “I only do this for people I know quite well,” he said. Younger animals whose horns grow quickly may have a bit of trouble, because they have not learned how to manoeuver themselves efficiently. Most of the horn growth happens in the first few years of life, and then the horns may grow an inch or two in subsequent years. Longhorns are easy to handle, said Stewart. “You just have to take your time. They’re very smart animals, so you don’t have to prod them and force them. You just let them know that they have to go up that alley, and they will figure that out and then go.” Stewart has brought animals up from the U.S. but tries not to bring them up in late fall. The animals quickly adapt to Alberta conditions, and animals older than a year stay on pasture year round. Longhorn meat is a fine-textured, lean product that is similar to bison meat. Stewart sells at a variety of farmers’ markets and directly to customers. “The best way to grow the business is not to be scared to meet

people and tell them what we do and what we have to offer,” he said. “The word gets around.” Stewart is currently the president of the Alberta Texas Longhorn Association, which has about 30 members, although not every breeder in the province belongs. Although he has sold some bulls to people who want to cross-breed, most of his breeding stock is sold to people who have Longhorn herds. Demand is strong as there aren’t very many Longhorn breeders or herds in Canada. The Stewarts organized the Red Deer Longhorn show in 2007, the only Longhorn show in Canada. “I get at least one phone call a week from people inquiring about breeding stock or just wanting to know more information about them,” he said. “It’s really rewarding when you go out on a limb and try something different and the phone keeps ringing.” In 2011, the Stewarts shipped 45 Longhorns to a rancher in Ger-

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Family key to ranching success Profit } Holistic management instructor says it follows from family unity and working with nature by daniel winters staff

Don Campbell, a holistic management instructor and rancher, outlines the basic principles of HM: caring for your people, improving the land, and making a profit. photo: Daniel Winters

attle prices are up, but for ranching families, the cost of not getting along with each other has stayed the same. Of the three fundamental principles of holistic management, “caring for your people” comes first, followed by “improving the land” and “making a profit,” says Don Campbell, a Saskatchewan rancher who teaches holistic management, which is focused on sustainability and working with nature. “It takes a very long-term view,” said Campbell, who runs 700 head of cattle on 4,200 acres near Meadow Lake, Sask. “We’re not going to say, ‘Let’s get through my life, or this crop year.’ We’re going to say, ‘Can people farm and ranch in this area 50 to 100 years from now because of the management that we’re applying?’

“To be successful long term, it’s essential that you care for the people, the land, and the money. Otherwise, it’s just a matter of time until you fail.” Campbell, who spoke at recent beef and forage workshops in Manitoba, said his grandson’s urgent need for heart surgery when he was just 15 days old reinforced that perspective. “We need to have our sons and daughters become better people than we are if we’re ever going to have a better world,” he said.

Defining success

Adopting a holistic management approach begins with all family members coming together and developing a goal based on their desired quality of life, what they value and consider important, and how they want to treat each other and be treated. They also need to define their collective vision of what “success” will look like. Once the goal is nailed down on

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paper with input from everyone, “buy-in” from all parties comes naturally and the discussion can begin on what to produce, and how to produce it in a profitable and sustainable fashion, said Campbell “Then we realize that when we succeed, we all succeed together,” said Campbell. “Not as individuals, but as communities.” Financial planning, land management, and “testing questions” along the way are just the tools to make it all happen, he added. “What makes life worthwhile? It’s all about loving and being loved,” he said. Since holistic management was introduced in Canada in the 1980s, people who have adopted its principles generally report they now have a “better quality of life” and “more time for what’s important,” he said, adding the next items on the list are improved land and higher profits. In 1972, Campbell took over the ranch purchased by his father in 1948, and faced all of the same problems as ranchers do everywhere. He put up hay, calved in March with a flashlight in hand, and struggled to make a profit.

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But since the 1980s, when he began managing in a holistic manner, he has increased the number of animals on his land base while at the same time lightening his family’s workload through May calving, bale grazing, and intensive grazing. Real change, he said, happens in your head. Haying with a team of horses and a five-foot sickle mower isn’t all that different from using a big tractor and modern equipment. It still takes all summer, he said. By intensively grazing his whole ranch using heavier stocking densities, he was able to make more profit, which meant that he could buy hay from his neighbour instead. “That’s a much bigger change than going from a horse mower to a discbine,” said Campbell. “It’s about changing how you see and think, not by buying a better tractor or a better cow.” Thirty years ago, Campbell and his two brothers tried working together on the family ranch. Within a year, only Campbell was left, and hard feelings lingered for years. In 2002, Campbell’s two married sons came back to the ranch. The intergenerational transfer this time was smoothed by holisticmanagement principles that gave them the people skills to get along, and the financial ability to support them all. In Campbell’s view, the purpose of farming or ranching should be to create a good life for the whole extended family. “We have the privilege every day to get up and go to work with our children,” he said. “You can’t put a price tag on taking your grandchildren out on horseback, checking cattle, working together, and seeing them on a daily basis.”

“What makes life worthwhile? It’s all about loving and being loved.” don campbell

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ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Drought rallies live cattle futures MARGINS  Packers are

swimming in red ink because the price of beef has not kept pace BY K.T. ARASU AND THEOPOLIS WATERS CHICAGO/REUTERS

exas rancher Jim Selman is on the verge of going out of the cattle business, a victim of one of the worst droughts since the dust bowl in the 1930s. The 300-cow herd on his 3,000acre ranch in Gonzales county has dwindled to a mere seven animals, as the verdant pastures turned into dried-up brush and hay prices went through the roof. Scenes like this have become the hallmark of the once robust ranching community in Texas, the cradle of the cattle industry, and to a lesser extent in states like Oklahoma and Kansas. Fears that the U.S. will “run out of cattle” and suffer from a shortage in beef supplies have lit a fire under the live cattle futures market. Futures have surged 40 per cent over the past five years,hitting a recent record 126.075 cents per pound. They are up 15 per cent in the past year. “I will not be terribly surprised if prices head even higher,” said Arkansas livestock analyst Dan Vaught. However, prices will first likely retreat during the winter and spring when supplies typically rise, he said. Poor margins for packers are also discouraging them from buying. Beef packers are, generally, swimming in red ink because the price of beef has not kept pace and some estimate they are losing about $100 for each head of cattle processed. Packers have been buying cattle despite running heavy losses because they needed to meet previously signed contracts and protect market share.

“As far as cattle go, because so many of them were brought in because of the drought there isn’t a lot to choose from now,” said trading adviser Joe Ocrant. “Also, a lot of the cattle that are coming out of feedlots now are lighter-weight cattle, which means we’re getting less beef from them.” Strong beef exports to countries such as South Korea and Japan have also been driving prices for cattle higher.

Texas cattle eating “range cubes.” Some Texas cattle producers have been providing supplemental feed for 16 months. PHOTO: TEXAS AGRILIFE EXTENSION SERVICE

“It comes through for me every time.”

Drought ignites market

A historic southern Plains drought that has lasted about a year is at the heart of the price rally, as the absence of pasture forced ranchers to liquidate their herd or send them to feedlots at an accelerated pace. The lack of pasture, coupled with a surge in corn prices, which hit a record high near $8 per bushel in June last year, forced some ranchers to send underweight cattle to feedlots, shrinking the supply of calves. That saw feeder cattle futures set multiple record highs in January as feedlots scrambled to secure supplies.

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Where’s the beef?

Economy and health concerns lower demand

Cheaper cuts } What was once ground or pot roasted is now being processed in different ways By Meredith Davis reuters

or the past decade, cattle ranchers and meat packers watched with despair as America’s beef consumption steadily declined, ceding ground to leaner meats as well as vegetarian trends among the health conscious. Most recently, high unemployment in the world’s wealthiest nation had cash-strapped Americans avoiding restaurants where beef is a common entree and had them switching to lower-cost non-meat dishes at home. USDA estimates 2011 U.S. per capita beef consumption at 57.4 lbs., down 13 per cent from 10 years ago and down about 25 per cent from 1980. In 2012, USDA predicts, Americans will eat 54.1 lbs. of beef on average. The beef industry is coping with these changes by developing new cuts that will satisfy appetites for steaks but at a lower cost. Also, it has benefited from a huge recovery in beef exports particularly to Asia and Russia, where consumers are upgrading their diets and concerns about mad cow disease fade. Beef companies, like Tyson Foods, JBS, Cargill, and National Beef are carving up beef carcasses in interesting new ways. Carcass portions that were once meant for ground meat or roasts, such as rounds and chucks, are now sliced into cheaper cuts of steaks for the American palate. These new less expensive steak

cuts became popular during the recession and still are, said Chris Calkins, professor of animal science at the University of Nebraska.

burgers anyone? u.s. per capita beef consumption

Smaller portions

At the height of the recession the beef industry saw a decline in high-end steak consumption, such as tenderloin and rib-eye, in fine-dining restaurants. This created an opportunity for beef companies and retailers to promote those higher-end cuts in supermarkets but in smaller portions, Trevor Amen, director of market intelligence at the National Cattleman’s Beef Association. “We have been successful in maintaining sales and item movement by producing smaller and thinner packages of our more expensive beef items,” said Karen May, external communications manager for Supervalu, a U.S.based retail grocer chain. As tough economic times and higher-priced food bite into Americans’ grocery budgets consumers look for ways to cut costs. Meat industry experts say Americans still crave the “steak-eating experience” but want it with a cheaper price. An even more popular cost-cutting tactic has been to purchase ground beef, oftentimes in bulk, instead of steak, creating what has become known as the “Hamburger Economy,” said Erin Borror, an economist with the U.S. Meat Export Federation. Ground beef sales in dollar terms rose seven per cent in the

last 52 weeks while steak cuts increased 1.3 per cent, according to National Cattleman’s Beef Association data. In an effort to improve domestic beef sales, meat giant Tyson Foods Inc. ran a 2011 summer promotion featuring its premium ground beef for burgers during the height of grilling season that was picked up by 1,600 retail stores, said Gary Mickelson, a Tyson spokesman. These efforts, plus strong exports and a decline in imported beef have helped push the average retail beef price to a record $5 per lb. in November, U.S. government data showed.

Exports are surging

While Americans are eating less beef, the appetite overseas is growing, particularly in places like Japan, South Korea and Russia, which has helped meat company profits. In the first 10 months of this year exports are up 25 per cent from a year earlier, putting 2011’s exports on track to be the largest ever. The more expensive cuts, like rib-eye and T-bone steaks, that for years were eaten here, are increasingly finding their way to affluent overseas customers who are expanding their presence in the world of fine dining. “Americans are cutting back. We’ve consumed ourselves to a plateau, but the growth and demand is there for exports,” said Chandler Keys, spokesman for the U.S. subsidiary of Brazil’s JBS, the world’s largest meat producer. “After the BSE we (the meat industry) realized we can’t pile back into the domestic market,” he said. The industry was laid flat by that mad cow outbreak as overseas consumers initially shunned

U.S. beef for fear they would contract the human form of the disease, with exports plunging in the aftermath. Since then export markets have slowly reopened. Japan, the top export market for U.S. beef before the mad cow case, has gradually resumed beef purchases since 2003 and is now the third-largest importer. Plus, it is considering fully reopening its door to the meat, a move that could add $1 billion to the value of U.S. beef exports, the U.S. Meat Export Federation said. With rising retail costs here and efforts to tackle chronic but preventable ailments such as obesity and diabetes, meat companies are increasingly developing and catering meat products to the tastes of foreign consumers. “The key thing is the people we’re selling our beef to are not in economic trouble. Asian countries make up a good portion of our buyers and Asia is still on a very strong economic growth path,” said Rich Nelson, director of research at Allendale Inc. in McHenry, Illinois.

“Americans are cutting back. We’ve consumed ourselves to a plateau, but the growth and demand is there for exports.” Chandler Keys JBS

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Canadian cattle herd to shrink despite strong prices and trade wins Continued } Canada Beef president expects Canada’s herd to keep

shrinking for the next two or three years by rod nickel

winnipeg / reuters

anada’s cattle herd should keep shrinking for several years, making it tough for the No. 3 beef exporter to fully capitalize on new overseas opportunities, according to the head of the country’s new beef industry group. The Canadian herd fell to an 18-year low of 13.87 million head midway through last year, even as Chicago live cattle futures prices were trading near-record highs and export opportunities are increasing, most notably to South Korea, which recently ended a nineyear ban on Canadian beef. But while there are more potential overseas buyers for cattle and beef than in nearly a decade, Canada does not have enough of either to supply them all. “It’s going to take time to rebuild that herd and the market signals are going to have to stimulate that investment on behalf of the producers,” said Robert Meijer, president of Canada Beef Inc., who expects the Canadian herd to keep shrinking for two to three more years. “We only have so much meat to go around.”

Domestic, U.S. and Mexican buyers are Canada’s priority markets for their close proximity and favourable currency trade-offs. Before exporters ship scarce supplies to new overseas markets, they want to ensure it is worth their while and that risks are low of new non-tariff barriers emerging, Meijer said. “The reality is, going into any of those export markets means displacing another export market or our home turf,” he said. “It remains to be seen how aggressive the Canadian packers and the exporters choose to (move) back into some of these markets.”

Long-term herd decline

As Canada’s herd shrinks, U.S. cattle inventory also has fallen to its lowest level since the 1950s. While severe drought in Texas has accelerated the U.S. decline, Canada’s herd has slipped due to factors such as the strong dollar and high grain prices. Aging demographics are also holding numbers in check, as Canadian ranchers retire and may not have children to continue the business, Meijer said. Canadian packers are also running slaughter plants under capacity because their cost of buying cattle has risen faster

than meat prices, he added. As a result, demand for cattle from beef packers and exporters such as Cargill and XL Foods might disappoint farmers eager to cash in on high prices after leaner years. “It takes time for the industry to react (to improving conditions), but from my perspective, there’s some rightsizing going on too,” said Meijer. Although Canada lacks the beef and cattle supplies to satisfy all its markets, the industry is eager to open more of them to avoid reliance on only a few. Japan is one of the highest priorities, Meijer said, since the high-paying market currently accepts only Canadian beef from cattle under 21 months of age. “It is frustrating when we’re dealing with trade barriers that fall way, way outside of science,” he said. “There’s huge potential in Japan.” Japan said last month it was reviewing its ban on certain cuts of beef from several countries, including Canada and the U.S. China committed in 2010 to resuming trade in Canadian beef and tallow. However, commercial trade has not resumed because of its standing restrictions on beef containing

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“We only have so much meat to go around,” says Canada Beef president Rob Meijer. the growth promotant ractopamine. Canadian plants owned by Cargill and XL Foods are cleared to ship to China, but to do so, they would have to incur the expense of segregating ractopamine-free cattle from other

types, Meijer said. “So when you’re short cattle in the market like we are, why would you go to the effort to chase China? You could sell it into the U.S. and make more money.”

news » livestock

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Sheldon Nicholson passes

pork producers name new chief

Funeral services were held in Tugaske, Sask. last week for noted livestock auctioneer and market manager Sheldon Nicholson, who died Jan. 31 at age 45. Nicholson was manager of the Yorkton, Sask. marketing centre for Heartland Livestock Services, and was known as a competitive auctioneer, placing in the top 10 in the annual Livestock Markets Association of Canada championships in 2005 and 2007. Nicholson is survived by his wife Jean and their combined family of five children.

Canada’s national hog industry association has named its first vice-president, Quebec hog producer Jean-Guy Vincent, as its new chairman. The Canadian Pork Council last month elected Vincent, a producer from Ste-Seraphine, about 30 km east of Drummondville, as its chair for the upcoming year. The CPC’s new second vice-president is Florian Possberg of Humboldt, Sask., representing Sask Pork. As council chairman, Vincent replaces Mayerthorpe, Alta. hog producer Jurgen Preugschas, who had chaired the national body since July 2008.

New captain at the helm of Alberta Cattle Feeders’ Association TOP ISSUES } Making it easier to hire foreign workers and approving

pharmaceutical livestock drugs faster are two priorities this year

Province backs ag societies for youth leadership work Youth emphasis } Farm safety

and leadership programs receive funding staff

by sheri monk

af staff | strathmore

“The banks tend to get nervous when you’re strung out this far.”

t could be a roller-coaster year for the new chair of the Alberta Cattle Feeders’ Association. “Hopefully it’s profitable for everybody,” said Brent Chaffee, who served as ACFA vice-chairman last year. Chaffee, a five-year board member, manages Strangmuir Farms near Strathmore and has worked in the feeding sector for nine years. Margin is everything in his business and that’s especially true this year, but ACFA has a strategy to make the industry more viable, said Chaffee. “Recently we completed a strategic planning session and what came out of that was we would continue to enhance our competitiveness by reducing regulatory burdens both provincially as well as working through the national cattle feeders to do it federally,” he said. High on the list is cutting red tape for hiring temporary foreign workers. “There have been some early strides in that this year (as) they have reduced some of the paperwork burdens there, but we have a ways to go before that program is accessible,” said Chaffee, adding workers are not permitted to attend classes, which reinforces the language barrier. Aligning Canada’s pharmaceutical approval process with the U.S. system, which is not only more streamlined but often has cheaper animal medications. “The retail sector up here has not adjusted necessarily to the reality of a par dollar and so anything from equipment to clothes to everything tends to cost a little bit more in Canada,” said Chaffee. “So that puts the wages higher and makes us less competitive with our U.S. counterparts.” Cattle numbers are down,

Brent Chaffee

Brent Chaffee, the new chair of Alberta Cattle Feeders’ Association. photo courtesy of ACFA which sent calf prices sky high during the 2011 fall run. Tight supply will be a challenge, but Chaffee said he is confident the feeding sector will persevere. “It’s always a concern — herd size does dictate availability of meat, so in the end, it makes it more difficult to compete with some of the other proteins,” he said. “And again the volatility in the markets with the world political and financial situations, the more money that it costs to buy a calf, the higher your risk level goes. The banks tend to get nervous when you’re strung out this far. Inventories are very expensive so if there’s any hiccup in the demand side, they can hammer the price down pretty fast.”

Good time to quit

This past fall, more cows came to town than many expected as cow-calf producers took advantage of high prices instead of retaining heifers. Some older

producers appear to have decided it was a good time to exit the industry, and Chaffee said many in the feeding sector have similar thoughts. “With the high prices, they tend to — especially if there’s profitability in the chain, it makes it a good time to step out, especially with the increase in risk profile,” he said. “If you’re 65, I imagine your tolerance for risk is somewhat different than when you’re 45.” It’s not just the feeders who are sweating a little – packers are even more at risk of losses if they can’t maintain maximum efficiency volume. Again, Chaffee is confident the chain can withstand the strain of higher prices. “I think they both have a vested interest at this point. There’s still enough cattle for them to draw. With opening markets, Korea and Japan specifically, and potentially the tariff rules in Europe. Those markets tend to

draw beef off of North America so it increases the price in the retail sector and higher demand will allow the packers to make money as well.” Any agricultural discussion in Canada isn’t complete without at least a mention of the demise of the Canadian Wheat Board’s monopoly, and Chaffee said he expects it will have an impact in the cattle sector. “We think it will increase the volatility of grains,” he said. “Short term it will take a little bit of time to kind of wash through the system, but when world prices for barley or for corn tend to increase, I think we will see barley leave Canada much more quickly. “In the long term, I think it will increase our feeding costs, or at least the risk of an increase in feeding costs. But from a philosophical point of view, it was the right thing to do.” Chaffee said ACFA’s income has increased since checkoffs became refundable, but the organization has seen its membership roll contract. “Where we’ve seen a slight decrease is in the smaller producers. And so we’d like to actually step out and make more contact with the 1,000- to 10,000-head feedlots. I think some people have gotten out. I think some people didn’t like it when we signed the memorandum of understanding and required the $1 fee as mandatory again.”

Agricultural societies in Alberta will get extra funding this year toward farmingrelated leadership development activities for youth in the province. “Currently, the average age of Alberta’s producers is 51; we need to change that,” Agriculture Minister Evan Berger said in a release. Berger pledged $2 million this year for ag societies, with a portion of the funding earmarked to “help support local programs that encourage our youth to become involved in our agriculture industry.” Seven regional ag societies — Grande Prairie, Camrose, Lloydminster, Red Deer, Olds, Medicine Hat and Lethbridge — will each get $142,850 in provincial support this year, of which 10 per cent must go directly to “agricultural youth leadership development or initiatives such as scholarships, training or youth development activities.” The extra money can also be used to “enhance farm safety programming,” the province said. The province’s 284 locallevel ag societies, meanwhile, will get $2,500 each for activity-based agricultural youth leadership development activities or farm safety programming. Remaining money from the $1 million granted to local ag societies goes to strengthen “activity-based funding” for 2011-12, the province said. The dedicated-funding model follows a similar approach taken in 2010, when each primary ag society got a one-time provincial grant of $2,500 for farm safety events and activities. Several societies combined that funding and developed joint programming, the province noted.

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Precision pork production — a vision of the future Individual treatment } Feeding programs would be designed

to meet the requirements of each pig in the barn By bernie peet

magine a finishing barn where each pig receives exactly the right amount of nutrients each day to optimize its growth, maximize the efficiency of nutrient use and minimize the excretion of waste. A barn where sophisticated feeding equipment identifies each pig and delivers a precise dose of blended feed using complex mathematical models to predict the pigs’ requirements. A barn where feeding costs are slashed due to the use of such technology. This was the vision described by Agriculture and Agri-Food Canada researcher Dr. Candido Pomar at the recent Banff Pork Seminar. In current grow-finish operations, feeding programs are designed to optimize the response of a group of pigs, however, nutrient requirements vary greatly between individual pigs and requirements change over time, also on an individual basis. “To optimize population responses, nutrients are provided at levels that satisfy the requirements of the most demanding pigs in the group, with the result that most of the pigs receive more nutrients than they need to express their growth potential,” Pomar said. “This is because, for most nutrients, underfed pigs will exhibit reduced growth performance and overfed ones will exhibit near optimal performance. “Precision feeding is based on the fact that animals within a group differ from each other in terms of age, weight and production potential and, therefore, each has different nutrient requirements,” Pomar said. “It involves the use of feeding techniques that allow the right amount of feed with the right composition to be provided at the right time to each pig in the group.” Commercially, phase feeding is used to adjust the supply of nutrients to meet the calculated requirements of a group of pigs, based on their weight and gender. This involves feeding a number of successive diets, each differing

“Feeding pigs with daily tailored diets reduced N and P intake by 25 per cent and 29 per cent respectively and the corresponding excretions were both reduced by more than 38 per cent.” Candido Pomar

Other options include the ability to manage the supply of nutrients to specific groups of pigs. in protein, energy or amino acid content, to match the requirements of the pigs, normally at the beginning of each feeding phase. The more diets that are fed, the more precisely the nutritional requirements of the group can be met, although normally the number of diets is limited by practical considerations. However, phase feeding typically only meets the requirements of 20 per cent of the pigs in a group with any degree of precision.

Precision feeding

Precision feeding overcomes the limitations of feeding systems in which optimal dietary nutrient levels are predetermined for specific feeding phases, according to Dr. Pomar. The precision feeding concept requires the exact nutrient requirement of each animal to be determined. Clearly, this is affected by a wide range of animal, environmental and management factors, meaning that complex mathematical modelling is needed to simulate growth and estimate nutrient requirements.

“The proposed system automatically collects real-time individual feed intake and body weight information and this information is used to estimate optimal nutrient concentration of diets to be given daily to each pig in the group using new modelling approaches,” Pomar said. A new automatic and intelligent precision feeder (AIPF) is under development at the University of Lleida, Spain, in collaboration with Agriculture and Agri-Food Canada. The AIPF identifies each pig that introduces its head into the feeder and then blends two or more premixes to deliver small meals providing the estimated optimal nutrient concentration. In a recent simulation experiment, pigs were fed ad libitum either according to a typical three-phase feeding program or fed individually with daily tailored diets such as could be provided using precision feeding techniques. “Feeding pigs with daily tailored diets reduced N and P

intake by 25 per cent and 29 per cent respectively and the corresponding excretions were both reduced by more than 38 per cent,” Pomar said. “Feeding costs were estimated to be reduced by more than $8/ pig.” However, the highest-performing pigs in the group received more protein and P when fed with daily tailored diets than when fed in the threephase feeding program.

Record nutrient intake

The feeding system will know past nutrient intake and growth patterns for each pig, which will enable it to avoid supplying excess nutrients such as protein and P to the pigs and consequently potentially polluting manure constituents. “The use of advanced computerized technologies also allows remote real-time monitoring of nutrient consumption and pig growth so that the producer can see what is going on wherever he is and make decisions about marketing strategy, for example,” Pomar said. “In addition,

by identifying any drop in feed intake, it allows early identification of diseases and precise application of individual treatments, thus improving herd performance and reducing veterinary costs.” Other options include the ability to manage the supply of nutrients to specific groups of pigs, for example gilts destined for the breeding herd which could be fed higher levels of phosphorus. Precision feeding would enable producers to manipulate the growth rate and carcass characteristics of individual pigs to meet their production objectives or specific market requirements. The possibilities seem endless and, with the experimental equipment already in use and a commercial-scale prototype being developed, it may not be long before this vision of the future becomes a reality. Bernie Peet is president of Pork Chain Consulting of Lacombe, Alberta, and editor of Western Hog Journal

7th Annual Family Day Sale February 20, 2012 1:00 p.m. at the farm at Athabasca, AB

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FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

USDA report shows even fewer cattle than expected

Starting a business? Help is available

Scrambling } Meat packers are short of supply

idea is feasible before getting too involved

Preparation } Determine whether a business

and said to be losing $98 per head

Agri-News shrinkage u.s. cattle herd as of january 1

Analysts estimate the cattle herd is the smallest since 1952.

By K.T. Arasu and Theopolis Waters chicago/reuters

The U.S. cattle herd has shrunk for the fifth straight year to a 60-year low, a government report showed Jan. 27, as a devastating drought and record-high feed costs hit production, which will likely mean even higher beef prices for consumers. One of the worst droughts since the dust bowl days in the 1930s plagued the top cattle state of Texas for more than a year. In addition cattle producers there and in other states faced high feed costs as corn prices in June soared to a record of almost $8 per bushel. Stiff competition with crop farmers for land also played a role in shrinking the herd. The U.S. Agriculture Department report showed the cattle herd at 90.77 million head as of Jan. 1, down 2.07 per cent from a year earlier and the biggest percentage decline since 1989. That also was a deeper cut than what analysts expected. A Reuters poll showed analysts, on average, expected 91.26 million head. “The big drop in calves weighing under 500 lbs. and the big drop in cow population is going to give the report a generally bullish tone,” said analyst Dan Vaught of Vaught Futures Insight in Altus, Arkansas. Fewer calves and breeding cows means fewer animals to rebuild the herd. “I would say we should have two more years of smaller cattle inventories,” said Ron Plain, Univer-

LLB

sity of Missouri livestock economist. Meat-packing companies are going to have to scramble for cattle.

Short slaughter supplies

“The first thing they should be shaking their heads about is there are not enough cattle to keep all the beef packers in the beef business,” Plain said of the meat companies. Beef processors, on average, had losses of about $98 per head on Friday due to the high cost of cattle, according to Hedgersedge.com LLC, an agribusiness risk management and market research firm. That date indicates processors have been losing money since mid-September. As a result processors are scaling back cattle slaughter. They also are passing the higher costs on to consumers, which could drive down demand for beef. “When cattle prices shoot up you raise the price of your finished product. In doing so, you run the risk of people turning away from beef, and some of that has happened, at least domestically,” said a source at a meat packer. “The consensus in the industry is that packers are losing money, and it’s going to take longer to pull out of this hole than most people thought. We’ve cut back some (slaughter), but not to the point of taking off days,” he added. Beef prices at the retail level have surged, setting record highs for four straight months late last year and more increases are coming. “Beef is going to get awfully pricy compared to the rest of the meats,” warned Plain.

26th Annual Spring Spectacular Bull & Female Sale Saturday, March 10th, 2012

600

Selling over head, this is Canada’s largest annual production sale! Offering a variety of purebred black and red angus genetics, including 100 yearling bulls, 25 fall born yearling bulls, 85 two year old bulls, and 120 yearling purebred heifers. Also selling 300 black and black baldie commercial yearling heifers.

Starting a business takes a lot of time, energy and determination. While it isn’t possible to eliminate all risks associated with starting a small business, chances of success can be improved with good planning and preparation. “Albertans who have an idea for a new business, need to determine whether or not their business idea is feasible before they get too involved in developing the product,” says Kathy Bosse, New Venture coach with Alberta Agriculture and Rural Development. “The research and planning work done ‘up front’ can make all the difference.” This “upfront” work involves: market research — studying trends to see if there is a need for the product cost calculations, determining if this is a moneymaking-opportunity marketing plan, deciding how and where the product will be sold, financial plan and establishing how the development and launch of the product will be financed. Once the opportunity assessment is complete, and if the

results are positive, it’s time to move to the next step, developing a business plan. Business planning involves gathering more detailed information which will help answer future questions and prepare you for the launch of the product. “This may sound a little intimidating and suggest that there is a lot of work involved — and there is, however, there are many agencies and services available to assist you,” says Bosse. “For entrepreneurs who are starting or expanding an agriculturebased business or developing a food product, Alberta Agriculture, Food and Rural Development’s New Venture team can help. They will coach you in the development of a strong business plan, help you determine trends and consumer demand, discuss regulations and help you determine your financial needs. “Remember, you need to do a lot of upfront planning to prevent wasting time and money by heading down the wrong path. Failure to plan, is planning to fail.” To reach a New Venture coach, call 310-FARM (3276) toll free in Alberta.

BRIEF NEWS N.B. orders alleged deer farms shut down staff New Brunswick is ordering people at over a dozen locations in the province to either slaughter or ship out captive white-tailed deer they’re alleged to be keeping on their premises. The only option available for individuals keeping such deer is to harvest the animals for personal use or to ship them to another jurisdiction where captivity is allowed, the province said.

That can only be done with CFIA approval. The operators have been told not to release captive white-tailed deer into the wild, due to the risk of spreading disease to wildlife. The province’s order follows the death last Oct. 9 of a 55-year-old man at St-Leonard, about 40 km southeast of Edmundston. He had gone into a fenced field near his home to tend to a herd of deer. It’s believed the man had been attacked by a dominant male deer in the herd, RCMP said.

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ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

Diagnosing common problems in calves beff 911 } It’s important to be able to recognize the

difference between scours and pneumonia

by Roy Lewis DVM

very calving season veterinarians are called on to examine calves with a multitude of problems. Some are herd related but many are individual problems of no concern to the rest of the herd. Most cases fall into a few broad categories. Each category has a much different treatment regime. This article will break out these different categories and hopefully make it easier to determine the course of treatment. With calves clinically we need to differentiate between whether the condition involves the lungs (pneumonia), intestines (scours), navel (omphalophlebitis) or involves a multitude of miscellaneous conditions. The two main diseases-scours and pneumonia often are treated much differently and may not be as easy to tell apart as one thinks. Scours may initially present as a very dopey, heavy-breathing calf. The calf may be quite acidotic and is attempting to blow off the acid through an increased respiratory rate, fooling you that he has pneumonia. A calf born selenium deficient may have heart issues if the heart muscle is affected. The lungs will start to fill with fluid because of the heart failure and again respiratory rate will be increased. While specific antibiotics have been developed for pneumonia they often are not the same ones we use to treat scours. Also the best initial treatment for scours is to give replacement fluids, since the dehydration is what kills the calf. Many causes of scours are viral in nature, against which antibiotics don’t work. Making the distinction between which organ system is involved can be difficult, and one your veterinarian may even struggle with at times.

Repeat message

As mentioned many other times before, we can never stress enough the importance of good-quality colostrum in giving calves a head start in life. Their ability to fight off disease challenges is much greater. Many cases of pneumonia, scours and septicemias (blood-borne infections) can be attributed to not receiving adequate colostrum. The navel area is another area to pay close attention to, as it is a common source for entry of infectious organisms into the body. Again, we need adequate colostrum. Watch the area for signs of swelling and an arched-back, tucked-up calf. If you grab the area and it is painful, that is a telltale sign infection is present. Backward calves or those born by C-section have their navels ripped off short and are much more susceptible to navel infection. At our clinic, for any calves born by C-section we purposely separate the navel by hand farther down the cord so the calf has a decently long navel cord when it is born. If they have a problem, some producers will even give prophylactic antibiotics at birth under the supervision of their veterinarian to counteract navel ills. If the navel problem spreads internally it has a good chance of landing in the joints and a severe arthritis ensues. Make sure and differentiate between navel infection and a simple hernia which may require surgery.

Lame calves

Lame calves are another common condition with young calves. Again, you need to differentiate whether it is arthritis from a navel infection, trauma causing a sprain, strain or trauma causing a broken leg. Each condition requires different treatment. The navel infection must be treated with drugs which will get into the joints, the sprains are just left to convalesce and the broken legs need attending by your veterinarian. If breaks are caught soon enough the prognosis and chances for recovery are very good. The lower the break the better. Young calves that are growing heal fast and put down bone very quickly so in three to four weeks we often have a complete recovery. Calves commonly will get stepped on by cows in heat so having creep areas where they can separate themselves from the cow

herd will pay dividends in fewer calf injuries. Creep areas are also very good at getting calves started on creep feed so preventives for coccidiosis such as deccox can be added to the feed. Calves are naturally inquisitive so products such as diatomaceous earth give calves something to lick on rather than dirt, roughage and stagnant water where their odds of picking up something harmful is much greater. Older calves become stronger and more resistant to picking up the common calfhood diseases such as scours or pneumonia. The four- to eight-week age is where the intestinal accidents and stomach ulcers develop. These conditions were gone into detail in a previous article but suffice it to say they are individual fluketype cases. It is probably most important to have a post-mortem done on sudden deaths to rule out infectious causes which

We can never stress enough the importance of good-quality colostrum in giving calves a head start in life. could spread to other herd mates. Otherwise you can rest assured it was one of these fluke intestinal conditions of which you have no control over. This summer try and differentiate these different categories of problems with young calves.

You will then be treating the right problem and your success rate will drastically improve. Roy Lewis is a large-animal veterinarian practising at the Westlock, Alberta Veterinary Centre. His main interests are bovine reproduction and herd health.

29th Annual

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PERFORMANCE TESTED CHAROLAIS BULL SALE Tuesday, February 21, 2012 12:30 at the Ranch, Strome, AB

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} argentina

FEBRUARY 13, 2012 • ALBERTAFARMEXPRESS.CA

Informa lowers corn, soy crop

Feb. to be warmer in Russia

Analytical firm Informa Economics lowered its forecast of 2011-12 Argentine soybean and corn production, citing hot and dry weather that has hurt yield prospects, trade sources said Feb. 3. Informa pegged Argentina’s 2011-12 soybean crop at 46.5 million tonnes, down from its January estimate of 51 million. It cut its estimate of Argentine corn production to 22.5 million tonnes, from 24 million previously, and its forecast of Brazil’s 2011-12 soybean crop to 70 million tonnes from its previous estimate of 72 million. Informa cut its forecast of Ukraine’s 2012-13 wheat harvest to 13 million tonnes, down 4.5 million from last month, after recent frigid temperatures threatened the winter wheat crop.

Temperatures in European Russia will be just 1° to 2° below multi-year averages in February, the state forecaster said on Feb. 2, offering respite for crops in Russia’s south which have been put at risk by unusually hard frosts. Earlier the Hydrometeorological Centre said that in exposed areas of key growing regions, weak shoots of winter wheat were at risk of winterkill in exposed areas, and frost damage was possible.

Understanding the basics behind our warm winter semi-permanent } Pressure areas around Iceland and the

Azores have a strong influence on weather

by daniel bezte

ver the last couple of months there has been a lot of talk about this winter, or rather, the lack of winter so far this year. Much of the discussion has focused on something called the North Atlantic Oscillation and its close cousin the Arctic Oscillation. I began discussing this early in January, so figured I’d tackle the subject in more detail. In particular, I’ll cover one topic I’ve received the most questions on this past couple of weeks, and that is, just why are there semi-permanent areas of low pressure around Iceland and semi-permanent areas of high pressure over the Azores region of the Atlantic Ocean? I hope to have enough room to fully discuss this, as it is a fairly broad topic. Several years

The trouble with this model is that the Earth rotates and this creates all sorts of problems.

ago I wrote a series of articles discussing the hows and whys of the Earth’s general atmospheric circulation patterns, so now it is time to see how good your memory is! The fundamental driving force behind Earth’s weather is the fact that the equatorial regions receive an excess amount of energy (heat) while the polar regions have an energy deficit (more energy goes out than comes in). The second thing that we have to keep in mind is that in general, warm air rises and cold air sinks. If we put these two points together we’ll see that all the extra heat around the equator wants to rise up and all the cold air around the poles wants to sink. Now, in your mind’s eye you can picture the cold air sinking at the poles, it hits the ground and the only direction it can flow is towards the equator. At the same time, the warm air at the equator is rising and then hitting the top of the troposphere (the part of the atmosphere where almost all weather takes place). When this warm air hits this point (known as the tropopause) it can’t rise any farther, so now it has to spread out horizontally. This means that

the only direction it can flow is towards the poles. We now have a simple circulation pattern where warm air rises at the equator and then flows towards the poles, while cold air sinks at the poles and flows towards the equator. This is known as the single-cell model of the atmosphere.

Earth’s rotation effect

If only it were this simple! The trouble with this model is that the Earth rotates and this creates all sorts of problems. The rising air at the tropics that is flowing towards the poles begins to curve, primarily due to the conservation of angular momentum. By the time this air reaches about 20-30 degrees latitude it is now flowing from west to east. With more air continuing to rise and move into this region, the air begins to pile up and the only place for it to go is downwards. Since downward-moving air creates regions of high pressure, this creates a band of high pressure around the Earth at these latitudes. The same thing happens with the air at the poles moving towards the equator. As it travels towards the equator it is curved and ends up flow-

This issue’s map shows the total precipitation across agricultural Alberta during January. From all the orange and red on the map it is easy to see that most areas saw less than 20 mm with a good chunk of this seeing less than 10 mm. The only wet areas were the extreme southwest and the Peace River region. ing from east to west and this curvature takes place near 60 degrees latitude. Again, air flowing towards the equator will pile up in this region, but now the only place for it to go is upward, and upward movement of air is associated with areas of low pressure. This gives us a region of low pressure circling the globe around this latitude. So we now have an equatorial cell of low pressure and rising air at the equator, sinking air and high pressure around 20-30 degrees latitude, and another region of sinking air and high pressure at the poles, with rising air and low pressure around 60 degrees latitude. This now gives us a basic understanding of why we have what is known as a semi-per-

manent area of low pressure known as the Icelandic Low and the semi-permanent Azores High. The reason they are called semi-permanent is that they undergo seasonal changes in both intensity and position. The position and strength of these features is controlled by the amount of energy entering and exiting each part of the system we have described. If a change occurs to one part of this system it will have an effect on the whole system — and it gets even more complicated; heck, we haven’t even talked about the area in between these two cells, namely the areas between 30 and 60 degrees latitude, which just happens to be our own neck of the woods! See, I knew I would run out of space…

ALBERTAFARMEXPRESS.CA • FEBRUARY 13, 2012

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