CR130201_East

Page 1

CORN FEBRUARY 2013

BACK TO BASICS FOR A BIG 2013 PRECISION CORN GETS BETTER START CBOT SHIFTS GEARS, WHAT’S YOUR PLAN?


S:7”

The weed in this ad could be the last weed you see.

Imagine going an entire growing season without worrying about a single weed. Think it sounds too good to be true? Think again.

Learn more at BayerCropScience.ca/ConvergeXT

Saving is now easier than ever! Simply call 1 888-283-6847 or talk to your retail to sign up for the BayerValue program today.

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.

Always read and follow label directions. Converge® is a registered trademark of the Bayer Group. Bayer CropScience is a member of CropLife Canada. *Based on five trials at three different Ontario locations in 2011. Trials were conducted comparing weed control with pre-emerge herbicides in corn. Trials were funded in part by the Grain Farmers of Ontario. The assistance of OMAFRA through the OMAFRA/University of Guelph Partnership is also acknowledged.

S:10”

Converge® XT features strong residual activity that controls more weeds than the competition. It’s the most consistent solution for crop-safe grassy and broadleaf weed control.* Make your first thought of the season the last time you think about weeds. Add Converge XT to your spray program today.


FEBRUARY 2013 The ‘cash’ in cash cropping The tillage fix Back to basics On the horizon After 2012 Cover question Precision corn Chicago shifts gears #PestPatrol

page 4 6 8 10 12 15 16 20 22

On the edges of the field Canadians have no idea how big a miracle is happening all around them. Year after year, the numbers get more incredible, yet nowhere do they get more incredible than in corn. Even for those of us who have grown up watching the crop, it’s amazing. To be absolutely honest, I simply did not know that our hybrids had it in them to produce some of the astronomic yields that Canada has seen even under difficult conditions over the last several years. As bad as the U.S. drought was, it’s a testament to farmers and to agriculture that the North American crop was anywhere near as big as it turned out to be. Even more impressive, however, has been the reaction of our farmers. Our farmers, after all, are the real genetics that are driving agriculture. Farmers like Ontario’s Chad Stanton aren’t sitting back and saying, “Sheesh, didn’t we get lucky.” Instead, they’re saying, “How do we make sure it happens again?” Or, to put it in the words Chad used when we interviewed him for this CORN GUIDE’s lead story, “OK, we’ve reached 200 (bushels per acre). Now, how do we get to 250? Or 300?” Corn Guide, February 2013

Just imagine the pressure on society if farmers today weren’t being so fantastically productive. Despite that, we’re increasingly aware now that farm sustainability now hinges on a politicized and volatile business environment. Scientists tell us to watch the shoreline. In the deep water, as on the farm, conditions seem to stay more or less constant and the fish swim about more or less as they always have, while on the dry ground above, the trees and animals seem to trudge along more or less in equilibrium with their environment. It’s at the water’s edge where the important stuff happens, because it’s at the edge where you see the struggle for resources and wealth that is actually underway. There’s no need to get too graphic here; we’ve all seen the NATIONAL GEOGRAPHIC documentaries. Whatever the weather in 2013, I have no doubt that I will once again be amazed at how many bushels farmers pull out of it. Like the rest of you, however, I will also be anxiously watching the shoreline. Let’s hope society knows where its interests lie. Tom Button, CG Editor tom.button@fbcpublishing.com 3


Cornguide

The ‘cash’ in cash cropping When corn is king, does it really make sense to plant anything else? We asked three top farmers By Ralph Pearce, CG Production Editor

4

S

purred on by the drought in 2012, the headline from the past 18 months has been the unprecedented boom in commodity prices, making it hard to remember that just a year ago commodity brokers were forecasting corn would hover between $3.75 and $4.25, pinned there by that huge corn factory called the U.S. Midwest and its power to flood the world market. A year later, corn is indeed in a holding pattern, but not at $4. What has become Year 2 of an extended drought for the Great Plains and parts of the Western Corn Belt has corn prices still up near historic highs, with corn showing a taste for producing farm profits that out-soar both soybeans and wheat. Market theory says that these prices are as much a signal to producers as to buyers. So, should farmers be dropping everything else and shifting every acre into corn in 2013? With its big yields and big returns, corn’s reputation as the king of the cash crops is well entrenched among farmers. It’s also arguable that more attention is paid to corn. Planting equipment is sized for getting corn in the ground, combines and grain carts are sized to take it off, and grain bins are sized to handle the harvest.

Wherever corn gets established, it becomes the crop that makes the rules. Yet although the temptation is there to run with corn from fencerow to fencerow this year, the logistics, the long-term effects on soil health, not to mention spreading the workload, mean that real success, even with high commodity prices, starts with the old mantra: “rotation, rotation, rotation.” That’s the practice foremost on the mind of Gary DeBorger. Farming as he does on 3,000 acres near Forest, Ont., his corn acres are definitely the highest in numbers. His standard is 1,100 acres for corn, and while he concedes that he may flex his acres by around 300, he’s reluctant to stray much beyond that number. “I’m not a proponent of corn on corn,” DeBorger says. “To me, the key to longterm success is rotation. Corn is such a high-revenue generator, but you can take a 15 per cent hit on corn yields if you don’t rotate.” DeBorger has a unique perspective on his land, referring to his farm as a 3,000acre test plot. He’s done extensive testing on his Brookston clay-loam soils, and he knows the value of maintaining his rotation, and of using a plow on his corn (he’s no till on his soybeans and wheat). Corn Guide, February 2013


Temperatures where he’s located in the lee of Lake Huron can vary 10° compared to London, less than an hour to the southeast. With roughly 2,500 acres of crops to get in the ground in spring, DeBorger faces the challenge of some lessthan-favourable growing conditions, especially with cold, northerly winds that can linger into April and May. Sticking to his conventional practices and standard rotations, he’s content with the amount of residue that he has to deal with. “I have fewer replants when I plant in those conventional situations,” says DeBorger. “If I’m going to have trouble, it’s going to be in no-till corn. But because we plow a reasonable amount, it’s not something we’re concerned about. We’re usually harvesting in September and the stalks have broken down enough by spring.” Working with animals Maintaining rotations is also an important practice for spreading the workload on the farm, and for Kevin Eisses, the allure of increasing corn acres has to be balanced against his workload, especially considering he’s a dairy producer. With 2,500 acres between himself and his uncle, who’s a poultry producer, spreading that workload and being able to feed their cows and birds is the primary focus. “Generally, we don’t sway too much on our corn acres, although there are some farms where we might analyze over the winter which commodity would be more profitable, and right now, it does favour corn,” says Eisses, who farms near Innisfil, Ont. “But we know from past experiences that it’s not going to stay that way. Sometimes you’re better off just staying with what you do, because if you start chasing something and your rotation gets out of whack, you can get into trouble.” Eisses refers to a couple of years ago when they ended up having to plant their wheat crop farther from their livestock barns than in previous years. It created some challenges in logistics when it came time to spread manure from the dairy and poultry operations. As it turned out, there were some hayfields close by which benefited from the manure application. Still, it was a lesson learned for them. With time so tight on modern farms, the cropping plan has got to harmonize with every other aspect of the operation. It’s difficult to chase one commodity in favour of another when you need to balance whole-farm management. “If you didn’t have that livestock base, Corn Guide, February 2013

The market wants corn, but on the DeBorger farm, agronomics are the foundation of profitability, and they say “rotate, rotate, rotate.”

you could be swayed by those prices, especially in a year like 2012, where there was the drought and yet the corn seemed to handle it better,” says Eisses. “The reality is that there isn’t a bad situation with respect to the commodity prices right now. It’s either good or better.” Eisses also knows of some growers who don’t like the amount of work that goes with producing a corn crop. They just want to get the combine and the wagons stowed away in October. And as corn volume increases, it can create challenges for storage, be it on-farm or at the elevator, not to mention transportation and other potential bottlenecks. “Plus with more corn, you never know what the fall’s going to be like,” says Eisses, noting that in many areas the 2012 harvest was pulled out of a wet October and November. One word When Chad Stanton is asked for his assessment of corn’s allure and the effect of current pricing, he readily concedes the genetics and the pricing are enough to convince some growers to radically change their cropping practices. But he also distills the discussion down to one word — management. “Is corn the key to success? It is a big part of success — to grow good corn,” says Stanton, who farms 850 acres in Plympton-Wyoming, Ont. “But management in my mind is definitely the bigger factor in success. Without good management, it’s just not going to happen for you.” Stanton stays the course on his rotations, the same as Eisses and DeBorger. When it comes to growing corn, he has a

process that he follows fairly strictly. He plows his wheat stubble, applies sufficient fertility, and plants a high population, protecting it with fungicide. Each step plays its part in the eventual yield for that corn crop, he believes, and if he misses or falls short on any one of those steps, he’s certain he’ll lose yield. Just because you can’t shift your acres to corn doesn’t mean, however, that you can’t set your sights on growing more. Even with concerns about sufficient moisture in 2012, there were growers on good soils who were averaging 200 bushels per acre. A decade ago, Stanton says anyone would have been hard pressed to convince him that 200 bushels was a possibility in Ontario. Now, he’s one of those growers who says, “OK, so we’ve reached 200. How do we get to 250? Or 300?” “It’s totally fair to call corn ‘king of the cash crops’ because it is, and it’s easy math. But that doesn’t give you a reason to go with continuous corn,” Stanton says. “You can grow corn on corn with the genetics they’ve lined up. But you’re looking one mile down the road instead of 15 miles down the road.” Stanton also knows history is on his side, because he has seen it in action. For much of the last 20 years, farmers in his region migrated to continuous soybeans because corn was barely meeting the cost of production. The damage that was done to the soil was undeniable, and so was its impact. “I saw that happening first hand, and those nice loamy soils on those farms were getting tighter and tighter after five or six years of soybeans,” says Stanton. “Monoculture, in my opinion, is not the way to go.” CG 5


Cornguide

With bigger yields, higher populations and thicker crop residues, tillage is roaring back

A

decade ago, the no-till question seemed a classic no-brainer. Now it’s one more sign of how fast the world is changing. Tillage is making a comeback, and this time, more experts are lining up to say it’s exactly the right thing to do, citing everything from economics to the sheer practicality of farming in today’s high-residue conditions. It goes beyond the notion that the tillage pendulum is swinging back, away from no-till or reduced-till practices, or that tillage is needed for weed or pest management. Simply put, tillage may become necessary as yields continue to increase. Jim Boak, national sales manager for Salford Farm Machinery, in Salford, Ont., notes that from an agronomic perspective, there are multiple reasons why corn needs the plow. As yields have soared beyond the 200-bushel mark, the amount of residue left in the fields is becoming a greater challenge for the subsequent crop, whether it’s a second or continuous crop of corn, or a rotational crop such as soybeans. “At 258 bushels per acre, you have roughly 34,000 lbs. of residue, just in the stalks,” says Boak, who tested this himself, sun drying some stalks to confirm the results. “I got them as dry as they could get during a two-week period, and each 6

The tillage fix By Ralph Pearce, CG Production Editor stalk still weighed about one pound… and that was without the root mass.” Using that as a guideline, a harvested plant population of 35,000 is roughly equivalent to 17.5 tons, or nearly 16 tonnes of residue per acre. Boak maintains that such a mat of dried leaves and stalks requires some sort of tillage to help with decomposition. Another trend that Boak is watching — and perhaps it goes hand in hand with this residue issue — is that as price and profits increase, so does tillage. He knows of some equipment company executives who have charted this as a trend. Boak agrees some farmers have soils conducive to no till, including relatively flat ground with low annual precipitation. Crop rotation and crop heat units are also major influences. Still, many of the old assumptions seem in flux, and Boak notes there are corn on corn and some continuous corn growers who claim that as their yields increase, their input costs decrease. Although he can cite the examples of Francis Childs and Herman Warsaw, or the research of Fred Below from the University of Illinois, Boak also acknowledges that there are considerable differences between soil and farming conditions in the U.S. Midwest and Ontario, including the reliance on irrigation in the Midwest. “Not every farmer is able to go no till,”

says Boak. “Growers have to look at their own list of yield-limiting factors on their farms.” A neighbour’s perspective Harry McCune comes at this discussion from a different perspective. He grows continuous corn, even to the extent that he insists the best way to lower your corn yields is to grow soybeans. “If you think about it, corn grows as a grass, not a legume,” says McCune, who farms in Bureau County in western Illinois. “You might get better corn after soybeans, but only because there’s less residue. All of these soils were built for grasses, so tillage is what’s needed.” McCune, who farms 3,500 acres — all of it corn — makes no apologies for his reliance on tillage. Instead, he’s an advocate for responsible use of a tillage program. “As long as we leave some residue on the soil, and we’re conscientious about what we’re doing, there’s a place for tillage,” McCune says, adding that farmers are more aware of what’s happening in the soil, and that they’re doing their jobs with a greater sense of purpose. “Years ago, when we were working the soils, we were making many trips over the field in the springtime,” McCune says. “Now, the number of those trips has been cut back. We don’t have the soil compaction going on, and that’s allowing water to infiltrate.” CG Corn Guide, February 2013


C S

P H

Weed control that never rests.

P C 2

D C [

F

U

C

P

A

P

The built-in residual control of Halex GT works a lot like you. Tireless and all season long. That’s the weed control you get from Halex® GT. With its three modes of action, your corn gets all the benefits of two applications of glyphosate from just one pass. It’s the harder-working glyphosate program that lets you work smarter. Visit SyngentaFarm.ca or contact our Customer Resource Centre at 1-87-SYNGENTA (1-877-964-3682). Always read and follow label directions. Halex® GT, the Alliance Frame, the Purpose Icon and the Syngenta logo are trademarks of a Syngenta Group Company. © 2013 Syngenta.


Cornguide

Back to basics In an era of big innovations, it turns out that it’s how you do the little things that counts By Ralph Pearce, CG Production Editor

8

F

armers are always looking for a better way. Call it an edge or an innovation. Even just call it a change or a modification. They’re looking for anything that boosts efficiency, produces more bushels, and generates more net revenue. After a couple decades of enormous changes in genetics, machinery and tillage systems, however, there’s a trend that’s taking shape that earlier farmers knew all about. It preaches fine tuning, and a return to the fundamentals. Such gradual tweaking is less costly, the thinking goes, and when considered as part of a long-term approach it carries a “slowand-steady” benefit, letting the producer better understand how the whole system will work together before tinkering too much with any one part of it. Whether the innovations are mechanical, agronomic or management oriented, growing your on-farm efficiency may be more achievable if your goal is a two per cent gain every year for 10 years than if you’re trying to grow by four per cent a year for five years. Over past decades, farmers have sped up the rate at which they evaluate new genetics from the seed companies. They’ve felt they had to, or they would miss out on new profit opportunities. Now, however, everybody from the crop protection sector to machinery makers seems to be unveiling new breakthroughs at the same speed. This doesn’t mean there’s anything

wrong with the rush of new technologies on to the market. But it does mean that more and more farmers are going back to basics, and they’re putting even more effort into acquiring solid, useful information for making their decisions. Besides, as the potential yield and revenue numbers in agriculture climb, there’s a growing recognition that the importance of getting the essential agronomics right climbs just as fast, and probably faster. Colin Smith, a dealer with Croplan Genetics, tells the story of a field demonstration held in 2012 near Wallaceburg, Ont. Word that farmers were initially hesitant to attend the day’s events began to filter back to the dealers hosting the demonstration. Some farmers explained that they thought only the company’s latest hybrids would be on display. But when they were told the agenda would feature information on agronomics such as planting depth, hybrid selection and population densities, the response started to grow. Smith is an advocate of providing farmers with more information on their seed genetics. Generally, however, few seed companies offer much information on their competitors, so most growers aren’t getting comparative data on which they can base their planting decisions (Croplan is introducing its R7 Tool computer program to provide comparisons of its hybrids with those of its leading competitors).

Corn Guide, February 2013


What good is the information? Is information the only thing standing between farmers and 300-bushel yields? Absolutely not. But it might be what’s keeping them from making the next 10or 20-bushel jump. “Getting back to basics means doing a lot of the little things that guys are beginning to do,” says Smith. In turn, those little things are often dependent on information. A tissue-testing program is one way for farmers to verify the activity of their soil program, says Smith, and it should also facilitate in-season applications if and when needed. But the bottom line is that a good soil program will detect and correct any deficiencies. It’s a slight shift in mindset to help the grower understand what’s happening, and to make the proper recommendation instead of trying to purchase an additive. Smith talks about meeting a researcher from Quebec who was developing herbicides and pesticides. To Smith’s surprise, the researcher gave him a number of old texts on agricultural and plant development, published in the late-1960s and early-’70s, and based on research carried out as far back as the 1950s. “It was amazing how much we knew back then,” says Smith. “Even covering off how nitrogen is absorbed through the plant or how nitrogen is broken down by the soil microbial system — a lot of that’s been forgotten.” When discussing some of that knowledge on fertility, Smith believes the one area that will change in the next decade is our efficiency ratings on fertility. For instance, the crop takes up only five to 10 per cent of applied phosphorus, 20 to 40 per cent of potassium and around 30 per

Corn Guide, February 2013

cent of nitrogen. So there’s room for improvement on that front. “There’s work being done already,” says Smith, who points to federal research into the use of nanotechnology to deliver nutrients to crops. “The science is sound, it’s just whether it’s practical. It’s not that we need more fertilizer, we just need to find out how to make the fertilizer we’re using at the proper rate more efficient.” Better educated growers Age is another back-to-basics driver, but probably not in the way you might first think. Instead, it’s because so many young farmers are returning to the farm, and they’re so much more scientifically educated than their parents and grandparents were. That’s the contention of Kevin Van Netten, an independent crop consultant and certified crop adviser with South Coast Agronomy in Simcoe, Ont. Young farmers are returning to the farm equipped with more than just a university degree. They’re also applying what they learned from their summer jobs. “A lot of them have been doing summer internships with the seed and chemical companies,” says Van Netten. “Their grandfathers and great-grandfathers did things without necessarily knowing why they were doing them, only that those things worked. Now, the younger farmers are learning the science.” In the past, adds Van Netten, 100-acre fields were divided into smaller parcels, with spring cereals grown in two or three plots, with other sections growing feed corn and forages. Crops were rotated and there were guidelines that were followed to maintain good growth. Now, those 10-acre boundar-

ies are gone, and farmers are managing larger fields and they are having to adjust by applying nutrients back on their soils or contemplating the benefits of drainage. One interesting change that Van Netten has noticed, compared to 10 or more years ago, is the return of liming. Decades ago, there were more lime spreaders seen on farms. “But now we know what lime does and what a balanced soil can do,” says Van Netten, noting the job that extension personnel have done in explaining the benefits of good soil fertility. “Ten to 15 years ago, there were government programs that supported people to do no till. Now, with yield monitors, growers are focused, and they’re paying better attention to soil health and plant health.” What, why and how Tom Snyder has a unique position when talking about the basics and how they relate to current management practices. As the operator of Grand River Planters in Caledonia, Ont., and a dealer for Precision Planting equipment, it would seem logical that Snyder wants to be in a sold-out position with his equipment. But Snyder is also a sweet corn grower, and what he thinks about mechanical innovations is the same thing that he thinks, for instance, about genetics. “The success of new breeding is going to depend on getting into the ground properly,” says Snyder. “The genetics have brought us a long ways. I mean, we came through the drought with some incredible yields, and that tells me that it’s an exciting time to be involved in agriculture, but it also comes with a heap of responsibilities.” CG

9


CORNGUIDE

ON THE

HORIZON

If you think the pace of change is fast now, then hold on to your hat By Jeanine Moyer

W

hen they’re filling their planters with integrated refuge seed that will shave hours of field work and paper pushing off their slate, growers don’t have much time to stop and think about how far the corn industry has come in the last few years. The same goes when they’re in their combines, harvesting corn plots like the one at Wingham, Ont. this fall that went 226 bushels per acre — an unheard of yield a decade ago, but now just another good score. The reality is the industry has come an amazingly long way in a very short time. Thanks to genetics and agronomic practices, corn has witnessed tremendous improvements. Even more impressively, the momentum is still building. Looking forward to the next few years, there are plans to deliver even higher yields, harness genetics solutions to combat even more pests and diseases, develop more diversified markets for corn, and increase overall productivity. It’s a mouthful, but the track record means that it may all be achievable. “We’re already further ahead than we predicted,” says Steven King, DuPont Pioneer corn research director for Canada. “Yield levels are approaching 300 bushels per acre in some areas and we’re going to see more growers reaching this yield potential in the next five to 10 years.” Greg Stewart, corn industry program lead with the Ontario Agriculture Ministry says genetics deserve most of the credit for the huge increases that growers are seeing in their yields today compared to 10 or 20 years ago. But it isn’t only genetics. Agriculture is firing on all cylinders, and in the case of corn in particular, big chunks of the praise also have to go to outstanding advances in agronomic practices, as well as the increasing uniformity of fields.

10

Says Stewart: “Equipment and technology are allowing growers to do a more uniform job of things like tillage, getting the right seed depth and reducing gaps or misses in spreading fertilizer or residue.” INVESTING IN RESEARCH King says his team at DuPont Pioneer is working to deliver solutions to simplify corn production for growers within 10 years, focusing on performance predictability and pest protection. Looking further ahead, King predicts that improvements in drought tolerance and in the efficiency of nitrogen use will mean even higher, more consistent yields for growers. “We have to keep our eyes on everything,” says King, noting that DuPont Pioneer, like many other seed companies, is involved in varying levels of research in all agronomic areas of corn production. King says that while it’s hard to react quickly to dramatic changes in production, weather, diseases or pests, his company has a large and diverse enough research pipeline to address changes. Their breeding process can take eight to 10 years, meaning they have to anticipate what growers will need before they know themselves. And of course, DuPont Pioneer is not alone. One of the most impressive features of today’s corn seed market is that despite two generations of mergers and acquisitions, it remains the focus of hot competition. Drought tolerance is one example of ongoing development and King says the dry 2012 growing season provided researchers with a valuable opportunity to research and identify plant genetics to tolerate hot and dry conditions. All the majors are in the race. Monsanto is developing DroughtGuard hybrids and Syngenta is developing its Agrisure Artesian trait. Pioneer DuPont has already launched the drought tolerant brand, AQUAmax, a hybrid that can better

tolerate extreme drought conditions, and growers can look for select hybrids carrying drought-resistant offerings in Canada. But there’s more to seed than genetics. Gord Surgeoner, president of Ontario Agri-Food Technologies predicts seed treatments will play an increasingly important role in corn yields and productivity. He says seed treatments already exist that can speed up plant emergence and encourage faster plant development by as much as two weeks. DESIGNED AND PLACED Agronomic practices can’t be overlooked. In fact, precision agriculture can complement genetic development. “We just haven’t tapped into it yet,” says Stewart. “Imagine using different seeds for different parts of a field.” Designer corn sounds like a fancy term now, but could be the way of future corn production, according to Barry Senft, CEO of the Grain Farmers of Ontario (GFO). He predicts breeding and growing specific traits for the end-user, like hybrids with increased efficiency in the fermentation process of ethanol production, will become popular and create value in the product chain. MAINTAIN THE MOMENTUM Ethanol has had a huge impact on corn demand in the past five to 10 years, helping to increase prices and demand, says Senft. In the next decade, he predicts market diversification will intensify, often driven by farm groups, and it will raise demand and prices even further. “There’s no doubt, corn will continue to be an important part of the farming rotation, and there’s lot of exciting things happening,” says Senft. Surgeoner agrees saying, “It’s safe to say growers can expect even more changes in the way they grow corn in coming years.” CG Corn Guide, February 2013


The future, today

T

Here’s an educated guess at what your future will look like

here’s no end to where sci-

have tried and basically given up.

ence can take the agricul-

Azotic however, says that it is

tural industry, and today’s

working with patented technol-

• Offer a cost benefit to growers

most impossible dreams could soon

ogy based on naturally occurring,

through a reduction in the use

be routine on-farm practices. For

nitrogen-fixing bacteria that take

of nitrogen-based fertilizers

example, take Azotic Technologies

up and use nitrogen from the air.

• A re environmentally friendly and contain no toxins

Gord Surgeoner, president of

Ltd. from the United Kingdom. It is

The strategy is similar to inocula-

developing new technologies that

Ontario Agri-Food Technologies

tion, and Azotic believes there will

will not only allow corn to fix its own

believes growers will reap big

be huge benefits not only for farm-

nitrogen from the air, but promote

gains when such new technolo-

ers, but for the environment as well.

gies come to market.

plant growth and vigour at the same time. Scientists have dreamed for years of tricking grass crops into fixing their own N, the way that legumes such as soybeans learned to do via evolution. In fact, a number of companies

According to its website at

Science will create smarter,

www.azotictechnologies.com, the

more self-sufficient plants that

company says its nitrogen-fixing

reduce the need for crop inputs,

bacteria:

and it will transform the future of

• Provide every cell in the plant

corn production, Surgeoner says.

with the ability to fix nitrogen

Incredibly, nitrogen-fixing corn is

• Replace approximately 60 per

only one example, and not even

cent of plant’s nitrogen needs

the furthest out there.

Moving at the speed of technology Providing growers with innovative products and convenient solutions, like SmartStax Refuge Advanced hybrids, the better blend formulation. TM

TM

Hyland Seeds – redefining the seed business. TM

1-800-265-7403 www.hylandseeds.com Hyland , the Hyland Seeds logo, Refuge Advanced and the Refuge Advanced logo are trademarks of Dow AgroSciences LLC. SmartStax multi-event technology developed by Dow AgroSciences and Monsanto. SmartStax is a trademark of Monsanto Technology LLC. 02/13-18303-2 CGE TM

TM

TM

Corn Guide, February 2013

TM

11


Cornguide

What is your soil’s fertility status after last year’s weird and sometimes woolly weather? By Ralph Pearce, CG Production Editor

After 2012 I

n the wake of last year’s sporadic drought conditions north of the border, there are plenty of questions getting asked as producers grapple with management decisions heading into April. Will moisture levels be closer to normal in 2013? Will corn and other commodity prices stay strong? And… is the nitrogen, phosphorus and potassium that I applied last spring and summer still there? As always, some of the answers depend on where you call home. Late-fall precipitation has done much to recharge soil moisture levels in many areas, although not enough to totally allay concerns about a continued drought.

The marketing question depends a lot on weather too, or course. At the very least, it’s safe to say prices will be unsettled in 2013, with markets getting spooked if there’s even a mention of the “d” word in the U.S. Midwest. The fertility question, though, is one that we might be able to be a lot more concrete about, because when it comes to the availability of inputs applied last year, the short and quick answer is that nitrogen will need to be replaced but potassium and phosphorus are likely still there in the soil, in one form or another. Typically, nitrogen doesn’t last long, either because it’s taken up by the crop or

“A lot will depend on how severely the drought affected a particular farm in 2012.” — Tom Bruulsema

12

Corn Guide, February 2013


because it’s lost due to chemical processes, meaning mainly leaching and denitrification. But that can still leave you guessing, so it may be a good year to go with a more detailed soil test that will provide the most precise detail on your fields. Go with the obvious Expert advice on available nutrients and on how to get maximum value from soil tests has seemingly been everywhere, particularly late in 2012. Various farm publications and news services devoted considerable coverage to the subject through the fall months. Some warned of inaccuracies in test results for potassium (K), noting that although it may not show up in soil tests, the applied K is nonetheless present in plant residues, waiting for a little precipitation to release it from decaying corn stalks. Other stories on the subject delved into concerns surrounding residual nitrates, silage and residues. There has even been work done on the effects of drought-induced herbicide carry-over. Although it’s an added cost, there’s nothing like the certainty that comes with a soil test — specifically, a pre-sidedress soil nitrate test (PSNT) — done in the spring. And as Tom Bruulsema, director with the International Plant Nutrition Institute notes, there are several factors to consider for soil testing, especially coming out of a drought situation. “A lot is going to depend on how severely the drought affected a particular farm in 2012,” says Bruulsema, who is based in Guelph, Ont. “If drought reduced the yield considerably, and the crop was still harvested as grain or not harvested at all, then nutrient plant removal would have been less, and we would expect some of the nutrients which were applied for the crop would still be in the soil.” Phosphorus and potassium are the two nutrients which should be in abundant supply, but even those levels should be assessed going into the spring. For the most part, sandy soils with low cation-exchange capacity (CEC) will see greater mobility for P and K, and especially for K. In that case, a grower may need to test more frequently than with soils that are of a finer texture. Also on the list of factors is higher pricing, for both crops and fertilizers. Testing can provide some insight which could push yields even higher in a good year. Corn Guide, February 2013

Crop removal is yet another factor that Bruulsema highlights as part of the decision-making process going forward into spring. When and why the crop was harvested will have an impact on what’s available. “Some corn crops weren’t harvested for grain but were taken off as silage, and that’s a completely different calculation, especially where the amount of potassium would increase if you’re taking the whole plant off the field,” Bruulsema

LIGHT YEARS AHEAD

says. “You want to be giving that some consideration as well.” Despite the trend towards corn on corn or even continuous corn, those planting corn after a failed or less-thanstellar soybean crop could find an added N credit. That comes from a September 2012 article written by Bruulsema. In it, he states that such an N credit could come from one or two sources: either the Continued on page 14

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.

®

I N N O VAT I V E N U T R I E N T S

©2013 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. 20199 CGE

13


Continued from page 13

biological N fixation that comes from a nodulated soybean crop or the pool of mineralized N in the soil. During times of drought however, nodulation can decrease and mineralization can slow down, meaning the subsequent corn crop has less of an N credit to mine. Again, a soil test will determine the extent to which that credit can be applied to a subsequent corn crop. Like checking oil So is it really such a new concept to recommend a soil test, even after a droughty year such as 2012? Not as far as Keith Reid is concerned. In fact, many of the observations made about available nutrients for subsequent crops or the benefits of soil sampling are very well known. For Reid, a soil researcher with Agriculture and Agri-Food Canada, soil testing is as natural as keeping your eye on the oil level in your truck or tractor. “There are some growers who are putting on moderate amounts of fertilizer every year, and they’re probably still close to the same amount, and they keep getting the same answer,” says Reid. “So there are some who begin to question whether it’s worth doing if they’re getting the same result.” Don’t forget too that one of the reasons why you check the oil level in a vehicle is because you know you might be losing oil in ways you can’t see, and which may not be obvious. A soils test can often pinpoint issues that aren’t waving red flags. And with fertilizers, if they 14

“Evaluating and implementing adequate soil fertility programs is an intricate and increasingly important part of profitable crop production.” — Jim Gowland were applied but weren’t harvested in one form or another, they have to be accounted for. “If you look at the cost of fertilizers,” Reid says, “on a gross dollar per acre basis, with the current crop yields and commodity prices, soil testing is an inexpensive way to keep track of what’s happening in the soil.” Borrow from the bank For Jim Gowland, there is no one blanket statement that can apply to fertility programs or nutrient levels in the soil. Different producers will see different results from last year’s drought, depending on the severity of the drought on particular soils and on whether the grower is sticking to a three-crop rotation or pushing continuous corn. This year, another factor in Gowland’s region around Teeswater, Ont., was the amount of double cropping that was done in 2012. With a shortage of quality forage across Ontario, some of those fields of barlage were planted into wheat stubble as a double-crop marketing opportunity, while other growers were feeding it directly to their own livestock. “There were some awesome-looking barlage crops for feed too,” says Gowland, who operates a 2,100-acre field crop enterprise consisting of 800 acres of corn, 900 acres of identity-preserved soybeans

and roughly 400 acres of wheat. “But there needs to be some recognition and awareness by growers of the amount of nutrients withdrawn with well-yielding added double crops.” In an exchange of fertility models, Reid has his oil check analogy, while Gowland sees the overall impact of scrimping on fertility as a not-soresponsible loan from a bank. Gowland also believes it is very important to soil test regularly, recording long-term data on a field-by-field basis and special attention must be taken to the trend lines for fertility levels in those fields. Plus, growers are keeping their eyes on fertilizer costs. But that’s not all, Gowland says. The strength of new crop genetics can change expectations too. “With increased advancements in genetics and biotech events, evaluating and implementing adequate soil fertility programs is an intricate and increasingly important part of profitable crop production.” As well, no matter what crop production system a grower uses, all our experts agree that there needs to be continued emphasis on responsible utilization of all crop nutrients, whether they come in the form of commercial fertilizer, manure or green crops. Of course, the fact that all this has to occur within what seems like an increasingly unpredictable global climate is just one more challenge, among the many others. CG Corn Guide, February 2013


Cornguide

It looks like oilseed radish can break up compaction and add nutrients, but… By Ralph Pearce, CG Production Editor

W

hat began as a bid to find a cover crop that can cure compacted soils and also build organic matter for the benefit of future crops is now becoming a little more complicated… and worthy of more research. The challenge is that some of the complications are driving farmers away from planting a certain variety of oilseed radish. Actually, the naming of the plant may be the start of the confusion. “Oilseed radish” has been cited as a cover crop option in reports from the Ontario Agriculture Ministry since the early to mid-2000s. In research papers from the University of Maryland, meanwhile, the same species is referred to as “forage radish.” And more recently, it’s come to the market as the trademarked Tillage Radish, grown in plots and tested by a handful of growers across Ontario. Whatever its brand name or variety, oilseed radish does boast some rather impressive properties, including heavy top growth and a very large tap root that can penetrate 12 to 20 inches, with a thin lower part that can extend as deep as six feet. Planted in the late summer or early fall, the crop’s thick, mat-like top growth is credited with suppressing late-growing Corn Guide, February 2013

Cover question fall and winter annuals. It dies off quickly as temperatures fall below -7 C, with the plant mass releasing a supply of available soil nitrogen that can last well into the following spring. Once the plant dies off, the macropores formed in the soil by the thick tap root act as a conduit for air and moisture to the lower levels of the soil profile — and often deep into the subsoil. Plus, with the deeper penetration, a radish cover crop can fracture plow pans. Research from the U.S. has also found significant yield increases in following crops. Winter wheat saw a five- to 12-bushel-per-acre advantage from a cover crop of radish, seeded at a rate of two to three pounds per acre. Soybeans saw yield bumps of up 10 per cent, and corn planted after radish notched an 11 per cent yield increase. Researchers at the University of Maryland reported a 12-bushel increase for corn and eight-bushel increase for soybeans, and also said that across 70 comparisons over five years, they never recorded a yield decrease in the radish rotation. As well, Ed Winkle, a longtime Ohio Valley no-till farmer, also tested Tillage Radish, and in 2009, he found a 22-bushel advantage in no-till corn after radish and an eight-bushel yield bump in no-till soybeans after radish. Some of the research from the U.S. also cites anecdotal reports from farmers

that oilseed radish can drive yield increases in drought conditions. Some negatives too Scott Banks, emerging crops specialist with the Ontario Agriculture Ministry, agrees that there’s been some interest in oilseed radish by extension personnel, researchers and farmers in Ontario, but he’s also the first to concede there’s been a problem with the thin filament-like root penetrating and plugging drainage tiles. “We did have one farmer who tried it following barley,” says Banks, who is based in Kemptville, Ontario. “He put it in in the fall and had pretty good growth, and actually brought some to the Leeds Soil and Crop Improvement Association meeting. Initially he was pretty keen on it, but with his tiles plugged, he’s off it now.” In fact, Banks has had some trouble generating interest in working with farmer co-operators, for that very reason. Setting up a trial can be a challenge because there is the potential distraction of working with it in the field while worrying about its effect on drainage tiles. “It’s great for soil structure, it helps build soil organic matter and it breaks up compaction… all of which can actually help drainage,” says Banks, noting that it might do well in fields where there is no drainage. “We’d love to work more with this crop but the truth is, we just haven’t had a lot of experience with it.” CG 15


Cornguide

In our followup report we ask, can the new Precision Planting technology really help you get more from your seed? By Ralph Pearce, CG Production Editor

16

Precision corn P

recision planting in corn isn’t exactly a new concept. Planter manufacturers have grappled with seed singulation and emergence for decades. Today, however, there’s real meaning in the precision promise, and growers can look to technology to save them money and time, and also to improve crop emergence and productivity. In part, the problem has always been that no field is perfectly uniform. Soil texture and structure vary. But it isn’t only the field that varies. Our machinery does too. Conventional down-pressure settings introduce inconsistencies, and standard metering systems can often create extra hurdles to uniform planting and even emergence. Then seasonal and year-to-year variability comes into the picture. You might find the perfect combination of down pressure and seed depth to use under perfect conditions, but how often are conditions perfect? Now, precision planting in corn is promising to take us beyond all that. The question is, can the proprietary name — Precision Planting — live up to the hype? Nearly 20 years ago, Gregg Sauder, a farmer from central Illinois, began developing systems to provide better singulation and superior depth control across any and all soil conditions. It’s to the point that today, his efforts have yielded a line of precision systems and controls that are sold by a growing team of dealers across North America, and that are being used by a loyal group of growers who have cut costs and improved productivity using the technology. As you’ll read, in fact, the people with the most experience with Precision Planting technology tend to be farmers who became dealers after early experiments with the system. The most popular technology from Precision Planting’s product line is the 20/20 SeedSense unit, a monitor which provides a wealth of readings to farmers as they plant their corn. The screen can provide information on seed population, percentage of singulation, percentage of skips/ multiples. It can also report on down force, and it can provide cumulative at-a-glance assessments of all row units, or insights into the specific performance of individual row units one at a time. The SeedSense

unit can also differentiate between different-size seeds, and then direct growers to adjust their speed accordingly. It’s all designed to be user friendly too, with colour coding for instance, where green means go, and yellow and red are indicators that attention is needed to get things back on the right track. The soil challenge Greg Millard is a farmer who is sold on Precision Planting for his operation and now is a dealer for the company. Farming near Vernon, Ont., south of Ottawa, Millard participated in a unique two-year plot trial on his farm, with help from Paul Sullivan, a certified crop adviser from Kinburn, west of Ottawa. Millard’s farm is a no-till operation with a three-crop rotation (primarily corn and soybeans, with spring wheat or edible beans) and soils that range from mostly silt-loam to silty clay-loams, with muck soils in parts of his fields. In 2010, Millard and Sullivan tested various planting parameters, ranging from down pressure and plant populations to the effects of speed on planter performance. For the tests, a Precision Planting 20/20 SeedSense monitor and a 20/20 AirForce control unit were configured to compare the precision system to conventional methods, including four separate down-force settings. The research was repeated the following year with a larger sample of co-operators. The second year brought in different crop rotations too, as well as a wider array of planting conditions and different soil and management scenarios. As much as Millard wanted a confirmation of the firstyear results, he also wanted to Canadianize the initial research data garnered from dealers and farmers in Illinois and Indiana. Although he was interested in the results of variable-rate seeding (testing at a standard 35,500 plants per acre, as well as 34,000 and 38,000), Millard was more impressed by the results from the AirForce unit that controls down force and effectively balances planter depth from one soil type to another. “In the middle of one field, it’s muck, and at the two ends of the field, it’s a clayloam,” says Millard. “When I got into the muck, I was going three inches deep (with Corn Guide, February 2013


Could down-force monitors have made this into a uniform field?

conventional down pressure) and there was nothing I could do about it, because I needed the down-force weight set on that row unit for the clay loam. “Ever since I went to this air-bag system that controls the weight on that row unit automatically,” he now reports, “the corn on my muck soils is coming out of the ground at the same time as the plants in the clay on the opposite end of the field.” The first time Millard had used a Precision Planting unit, he had gone for the SeedSense monitor. That was 2008, and in addition to checking his seed depth and speed, it gave him the actual weight readouts on the row units, although there was no way of controlling that weight individually. It wasn’t until the following year that he added the AirForce system, with its airbag sensors that automatically adjust the weight on each row unit, providing more uniform depth of planting and improved emergence. Now that he’s used it for a few years, Millard is finding that issues such as sidewall smearing, uneven emergence and hatchet roots on developing plants are greatly reduced. “I’m the type who will try it first, and if it’s not going to work, I don’t want to be selling the product,” says Millard, who regularly hosts workshops on the use of Precision Planting equipment, including one for beginners and another for those Corn Guide, February 2013

who have an AirForce or SeedSense unit (or both). “I tell my customers, ‘This monitor has a price tag on it, and the first few days, you will be overwhelmed by the information, but don’t let it get to you.’ That’s where I have to get them on the first day or two, to focus on a couple of issues, and that’s it, because you will be blown away by the information that’s there.” New insights into planting For Paul Sullivan, many of the advantages of the Precision Planting systems are summed up in the statement a customer of Millard’s made recently at a meeting in Avonmore. The farmer said that the technology got him off the planter to make adjustments that he wouldn’t otherwise have known to make until after the corn plant came up. “The things that I was seeing, that were costing my clients money in their corn stands, we’ve been able to reduce by using some of that technology that’s there, right now,” says Sullivan, citing seed placement as an important component of precision agriculture. “It makes sense because it gives them the opportunity to see what’s happening, not only with the seed that’s going in, but how it’s going in and what the environment is around the planting where that seed is going. As farms are amalgamated and fields get bigger, there’s such variation in the soil con-

ditions at planting time, that this technology allows us to have some ability to see what changes might be made to the seed that’s placed in the ground. “These bigger planters that are out there, guys just aren’t getting off to do anything to the planters,” Sullivan says. “The reality is they have to go, and this technology is giving them an idea of how things are going in the field before they get a lot of acres planted.” The technology has the ability to consider, monitor and adjust to parameters in the soil, on the machine and across the field that growers have never really been able to control before, and it is providing fresh insights into the planting process. According to Sullivan, in Millard’s first year with the SeedSense unit, the monitor told him he needed a lot of down pressure to compensate for tighter soils due to the amount of frost in the ground. The next year, the SeedSense monitor told him that he had far too much down pressure on the row units, all because the ground was mellower. The effects of sidewall smearing are also something Sullivan points to as justification for the investment in down-pressure adjustment and monitoring down force. One year, one of his clients had a problem with every field where the seed slots had reopened. How much yield is lost because of excessive down pressure leading to sidewall smearing? Continued on page 18

17


Continued from page 17

“We talk about early weed control in corn being important because it affects the root,” says Sullivan. “But the physical placement of the seed in the soil, if that’s affecting the root, then it’s not hard to understand that that has to have some impact on how that corn plant gets started.” You can measure that For years, growers have driven at a set speed or planted to a set depth, even where there may have been good reasons to adjust speed or depth for different fields or field conditions. The same is true for weights on the planter units, although that number has been hard to quantify. But Millard recalls asking one grower who was adjusting his speed w ith the SeedSense system why he changed from one field to the next. “He said, ‘I changed hybrids, and the hybrids were two different seed sizes, and your 20/20 (SeedSense) told me that once I got to this seed size, in order to get the singulation and the dollar signs on the right side of the red line, I had to slow down,’” says Millard (who also sells seed for DuPont-Pioneer Hi-Bred.) Millard adds that the same thinking applies to down-force pressure on the row units, where tighter soils automatically command higher weights. “But if you get that planter with a load of seed and a load of insecticide or a mini-load of MAP, that unit’s running really heavy. And they just set it at 400 lbs. and they know they’re in the ground, but then they get those hatchet roots that can’t bust that sidewall they made because they were carrying too much weight on those gauge wheels.” Millard and Sullivan also tested some conditions that aren’t likely to occur, just to have a benchmark to compare to conventional and extreme parameters. It’s also important to know that as good as this technology sounds and looks, Millard emphasizes that growers still need to get out of the tractor to ground-truth what they’re doing, and to confirm that the planter is doing exactly what the monitor says it is. But even that process is a time saver, relative to what a grower might have to do without the precision units. The spectre of $4 corn Some may question the viability of precise planting technologies, especially when land and commodity prices are relatively high. The tendency might be to just get on the land once it’s fit, and liter18

In corn, information is becoming the next big yield maker. Growers know they need uniform stands for optimum yields, but the insurmountable challenge has always been that it’s virtually impossible to set up planting equipment to do a uniform job across fields that are variable, not to mention weather patterns that can change ground conditions while you work. Now technology means you can know in real time exactly what’s going on with each planter unit, and make adjustments on the fly.

ally “drive on.” But Tom Snyder believes now is the perfect time to learn to use the technology efficiently before corn prices return to something in the $4 range. Like Millard and Sullivan, Snyder tried to measure the impact of precision agricultural practices for his operation. Another of the “farmer-turned-dealer” set, Snyder runs his own farm with 65 acres of sweet corn near Caledonia, Ont., and also manages Grand River Planters, including Precision Planting technology. He believes more in making small changes in management practices, instead of large-scale or sweeping alterations. The Precision Planting systems are, in his opinion, game changers for an operation that makes incremental adjustments that can quickly add up to improved performance. “I’ve never seen a monitor that can give me singulation details in sweet corn,” says Snyder, noting that sweet corn seed is considerably different from grain corn seed, and that singulation in sweet corn is a constant battle. “We had the monitor, and there’s value there for me — I’ll get that money back in a year, just on singulation details. But what I was shocked to see was how far off I was with down force, and I was disappointed with how frustrating it was to manage my down force with springs, with the numbers in the cab. So now I know what I’m doing, but not being able to hit that target is what made us decide to go to the AirForce.” Snyder has done his own on-farm research and broken it down to the effect on kernels planted and 1,000ths-of-anacre measurements (and that same incre-

ment is cited in Millard and Sullivan’s Year 2 research). On his farm, Snyder maintains that every kernel can be equated to an ear of corn, an important unit for sweet corn. In grain corn, that value is more likely to be expressed in bushels per acre, and in Illinois, the loss of a kernel translates into roughly seven bushels for every 1,000 ears lost per acre. Snyder has done the math for his area and has found that it’s closer to 560 kernels or 5.6 bushels per 1,000 ears. “Every kernel that we put in the ground should net us back 560 kernels, so every one that’s not put in right is costing us those 560 kernels,” Snyder says. “I want growers to look at their operations and ask, ‘Where can I gain my next 1,000th, with one ear per yield check or 1,000 ears per acre?’ Whether that’s with guidance or whether that’s with tillage, or whatever that’s with, I think information is the key.” It’s part of the search for efficiencies that can add to a farm’s bottom line. If a system can allow a grower to drive faster or save seed through improved singulation, or boost emergence by reducing sidewall smearing, it all translates to the same thing: improved profitability. (Results of the 2010 plot research conducted by Greg Millard and Paul Sullivan are available from the Precision Planting website, at http://www.precisionplant-

ing.com/Service-Education/Service/ Grant-Program.aspx. Copies of both the

2010 and 2011 studies are also available via email, at greg.millard@plantpioneer. com or ptsullivan@xplornet.com). CG Corn Guide, February 2013


Conference 2013

February 26 & 27, 2013 Tuesday & Wednesday

Lamplighter Inn London, Ontario

The Power of Cover Crops

The Journey to Sustainability

The Courage to Change is in All of Us Claude Ouimet, Senior VP, Interface “All of us, individuals and companies, have the power and courage to change, to be the change and to do something to address the global environmental crisis.”

Dave Brandt, Cover Crop Innovator

The Future of Nitrogen Management Peter Scharf, University of Missouri

“My crystal ball shows better understanding and diagnosis of optimal N fertilizer rate, and less loss to the environment.”

Precision Cropping Workshop

Refine Inputs, Promote Soil Health, Feed More Precision Ag: Where are We Now? Fitting the Pieces Together Speaker: Dr. John Fulton, University of Auburn plus Top Technical Tips and Case Studies with several industry and technical representatives.

Drill vs Planter Farmer Panel

Can a planter solve all of your reduced tillage problems? How much additional seed is required for no-till soybeans when using a drill compared to a planter? Will vertical tillage make a drill perform like a planter? What are the logistical headaches for using one planter for both crops? Answers to these and other mind altering questions in this lively session. No Till For Extreme Yields Dean Glenney Ontario Corn Champion Unmanned Aerial Vehicles Felix Weber

For more information or to register… www.ifao.com or call 519-986-3560

Conference Prices

$250 – Early Bird to Feb 5th

includes banquet and entertainer Day 1 Only – $150 Day 2 Only – $125

Major Conference Sponsors


Cornguide

Chicago shifts gears S

The great demand-driven market has slipped into

reverse, which means you need to figure out the price where you’re comfortable and profitable

By Philip Shaw

20

ometimes unexpected events come along that change everything in the corn market. Last year was the perfect example. By January, weather was already having an impact. South America’s corn outlook had been wracked by a tough year. Already it was clear that world corn stocks would fall, and that we would need a big American crop to restore those stocks and continue building demand. What did we get? In 2012, one of the worst droughts in American history fried the U.S. corn crop. Yields fell more than 40 bushels an acre below the trend line, and you know the rest of the story. Markets reeled, corn prices exploded and expectations totally changed. But that was 2012. Now, it is a new day. We’re into 2013, and it’s time to take a hard look at the new realities. For corn growers, the question is what to do? Last year parts of the Canadian Corn Belt suffered bits and pieces of the drought that seared the U.S. Midwest. However, at the end of the day Ontario for example, produced some 338.5 million bushels of corn with an average yield of approximately 153.2 bushels per acre. It was a good year for corn producers, especially when corn prices have spent so many months in the top five per cent of the past five-year historical average price range. What strategies and marketing plans should be put in place now for the corn crop which we will produce this year? What are the possible scenarios which may play out in the corn market in 2013? How do corn producers mitigate the risk? Or, do we just close our eyes and hope for the best? There are myriad options available when considering a marketing plan for this year’s corn, but a lot still boils down to how you read the upcoming production season. Do you sell a portion of your 2013 corn now, based on the newcrop values available? Or do you wait, measuring the production risk as you go through your season, monitoring the

various weather events that may impact crop prices worldwide? Where are you profitable and comfortable in this corn price environment? It’s one salient question that needs to be asked as you plan your corn-marketing strategy for 2013. Darin Newsom, a senior grain analyst with DTN Progressive Farmer of Omaha Nebraska, says recent USDA reports confirm both that while this is the first time that global demand has fallen for corn, it’s also the third year in a row that demand inside the U.S. has dropped. That is very telling for the corn market. Prices have become more volatile since 2008, which means corn demand has been in the crosshairs, and what we’re seeing is that when futures prices go over $6, $7 and even $8 a bushel, they do in fact ration demand.

Corn Guide, February 2013


The market for corn is shrinking. In fact, this has been happening over the last several years, and in 2012 there was a reduction of approximately 1.3 billion bushels in corn demand from the previous year. This was a cumulative drop from ethanol, feed and residual use. The great corn demand-driven market, which began in the mid-2000s sparked by ethanol, may in fact be turning around. The U.S. is the world’s dominant supplier of corn. In December, the USDA reported total U.S. 2012 production at 10.725 billion bushels, making it one of the smallest harvests in many years. At the same time, corn usage is pegged at 11.167 billion bushels. In other words, corn continues to be used up faster than it is being produced. This is reflected in the U.S. stocks to use ratio of 5.4 per cent. The average price projected in the United States for 2012-13 (old crop) from the USDA is $7.40 per bushel. For those who had corn this year, it was one for the ages. The question is, can the U.S. turn this trend around on the supply side and produce a “bin buster” in 2013? If this happens it will mean they will finally have more supply than they are using and ending stocks will rise significantly. It’s the quintessential question in our corn-marketing plans for 2013. Of course the flip side of that equation is, how low do corn prices need to drop so corn demand will start rising? Is the corn market caught up with other commodities that are losing their lustre in the investment world? Clearly, there are questions out there Corn Guide, February 2013

about the demand for commodities, as well as whether corn demand will come back strong at lower price values. For those considering all the risk ahead, marketing much of their corn at present new-crop values may be a consideration. There are many corn supply bears out there who are saying the United States will produce greater than 98 million acres of corn at trend line yields with a crop of over 14.8 billion bushels coming off 2013 fields. This would be the biggest crop ever and it is one reason why new-crop values are so much lower than old-crop values. Futures markets measure the future, and with snow in our fields now, it sees everybody in the United States is planting corn for next year. That is easy to understand. What is more difficult to get past is the emotional argument of farmers not wanting to accept less than they got last year. There is huge potential for oversupply in 2013, but will this be balanced by farmer resistance to sell? There is much production risk to play out over 2013, but surely a portion of your production could be priced now. Nobody knows what’s ahead, but if you are profitable and comfortable now at these price levels, placing a percentage of your potential crop never hurts. It is all crystal ball gazing regarding potential supply in the United States, but part of your job now may be to mitigate price risk. If we are to assume a big corn crop in the United States in 2013, a few scenarios may play out.

Between January and March 2013, corn futures may stay in a sideways range possibly getting as low as $6.80 per bushel. Possibly in April to June, we may see our best chance for an oldcrop rally and with that an increased chance for non-commercial speculative demand to boost prices. In the July to September period, there’s a good chance we will see a top with prices drifting lower depending on how the crop looks and what kind of crop potential is out there. In the October to December 2013 period, it is likely we will see harvest lows in the futures market, possibly between $5.75 and $6.15 per bushel, which would put Ontario cash prices at that time close to $5 a bushel. Of course there is much production risk between then and now and any marketing plan will need to take that into consideration. Nobody knows what price will do. Hedging the futures risk as well as using options should always be a consideration, but that will complicate the marketing decision. These are agricultural prices; they’re always up and down, and the marketing sweet spot is truly elusive. Will there be profitable opportunities to price corn throughout 2013? That may depend on your own daily market intelligence and having the marketing plan to go with it. As 2013 begins, however, we know that profitable corn prices for both old crop and new crop are there to be had. The challenge moving ahead is to market where you are profitable and comfortable. CG 21


Cornguide

#PestPatrol with Mike Cowbrough, OMAFRA

Crop production apps and calculators worth a look for 2013

P

erhaps your significant other gave you a tablet computer for Christmas. After weeks of playing Angry Birds or trolling YouTube.com for “funny tractor accidents” (which is actually worth a look) you have decided it might be a good idea to add some agricultural applications to your screen space. At least then you’d give the illusion of using the device for work purposes. Here are four Ontariobased applications worth a look.

Corn Nitrogen Calculator What it does: Provides you with the most economical rate of nitrogen based on your soil type, previous crop, anticipated corn yield, price of nitrogen and selling price.

Weedpro75 What it does: Weedpro75 ranks herbicide programs for corn, soybeans and cereals based on the weeds you wish to control and the value of your crop.

Cool features: You can run through different scenarios and when finished a summary can be printed off or saved for your records.

Cool features: You can create an account that saves all your field information. It also allows you to sort through herbicide rankings based on price, weed control or environmental impact.

Platforms: Can only be used on tablet computers (iPad), laptop or desktop computers.

Platforms: Can be used on any type of smartphone, tablet, laptop or desktop computer.

Where can I get it: www.gocorn.net

Where can I get it: www.weedpro75.com

GFO SellSmart What it does: Provides local price information, head-to-head price comparisons and price alerts for corn, soybean and wheat.

Aphid Advisor What it does: Aphid Advisor provides management advice for soybean aphid control based on the number of aphids and natural enemies in the field.

Cool features: You can set a selling price you want for each crop and then you’ll get a notification when each crop hits that set price.

Cool features: You can view aphid populations by country based on the data other users have entered.

Platforms: Android, BlackBerry and iPhone. Where can I get it: www.gfo.ca/sellsmart

Platforms: iPhone or BlackBerry smartphones. Where can I get it: www.aphidapp.com

Have a question you want answered? Hashtag #PestPatrol on twitter.com to @cowbrough or email Mike at mike.cowbrough@ontario.ca

22

Corn Guide, February 2013


Spotlight on Crop AdvAnCeS Crop Advances is an annual report that summarizes applied research projects involving the OMAFRA Field Crop team, in partnership with commodity groups, industry and the OSCIA. www.ontariosoilcrop.org/en/resources/cropadvances.htm

Soybean yields from no-till fields comparable to other tillage practices By Lilian Schaer New research shows that no-till can achieve equal soybean yields to conventional tillage practices. A study led by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA), showed that excellent yields and profits can be achieved without conducting primary tillage when growing soybeans. “Two thirds of Ontario’s soybean production has traditionally been grown under no-till or reduced tillage systems, but many growers have expressed dissatisfaction with their yield performance using no-till,” says Horst Bohner, OMAFRA Soybean Specialist. “Through this project we wanted to learn whether no-till practices are resulting in lower soybean yields in today’s high corn residue fields.” How was the research conducted? Researchers conducted both small plot and field scale replicated trails over the two-year project. Plots were tilled at the trial sites the preceding fall and again in the spring, and planted shortly after spring tillage. Two small scale trials were conducted each year, along with four field scale trials in 2011 and five in 2012. Soil moisture and temperature assessments were conducted along with yield analysis.

Bohner. “No-till proved to be an effective production system at each of the trials harvested over the two years of this study.” The yield reductions in no-till being reported by growers may often be due to reduced plant stands. A no-till plot where the seeding rate was increased by 30 per cent in 2012 resulted in a yield of 38.5 bushels per acre over the 35 bushels per acre in no-till with a normal seeding rate. By comparison, the best tillage treatment – fall disc ripper and spring cultivate – yielded 37.8 bushels per acre. “Although this theory was only tested in 2012, initial results strongly suggest that one of the ways to overcome possible yield reductions in no-till may be simply to increase seeding rates in no till,” says Bohner. Stuart Wright, a Wellington County dairy and cash crop producer, had two plots on his farm where various tillage practices were tested during the project.

What did the study find? “In this study, we found no evidence of significantly reduced yields in no-till. So far, it appears the best way to achieve high yields, profits, and maintain the environmental benefits of no-till is to remain in a no till system,” says

ontArio Soil And Crop iMproveMent ASSoCiAtion

“The bottom line was no-till came out pretty well,” he says. “You can solve a lot of problems by just pulling a moldboard plow through the ground, but if you can accomplish the same things with reduced till or no-till, you’re not only encouraging soil preservation but also saving time and reducing fuel use and emissions with fewer passes over the field.” Where can I get more information? More information on this project can be found in Crop Advances at http://bit.ly/WXSeb7. How was the research funded? Support for this project was provided by the Farm Innovation Program, funded in part through Growing Forward, a federalprovincial-territorial initiative. Project contributions were also made by the University of Guelph, the Environmental Sustainability Directed Research Program, Grain Farmers of Ontario and John Deere. OSCIA assisted with communication of research results.

Top tips for farmers No-till can achieve equal yields to conventional tillage when growing soybeans.

Yield loss sometimes associated with no-till may be due to reduced plant stands in no-till.

Reduced till can provide excellent soil drying and warming as well as small yield advantages.

Mission: Facilitate responsible economic management of soil, water, air and crops through development and communication of innovative farming practices

www.ontariosoilcrop.org/default.htm


Search Canada’s top agriculture publications with just a click. Network Nobody has more daily news and up-to-the-minute ag information than the AgCanada Network. Our respected titles cover all aspects of the industry, with award-winning, in-depth local, national and international coverage.

SEARCH

Look for the AgCanada Network Search button on the top right of the AgCanada.com homepage

Weather you’re looking for a comprehensive article on a specific crop, or a recipe for muffins, start your search at the AgCanada Network.

AgCanada.com Network Search Search news. Read stories. Find insight.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.