Farmforum summer 2009

farm forum is online

INSIDE: oil and ag link

p. 13 winter wheat joins the prairie mainstream

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Bayer CropScience supporting Canadian farm families SUMMER 2009 | $5.00

Grain carts increase harvest efficiency PLUS:

Size really does matter >> Technology: Get ready for 2010 >> Business: A new green revolution >> Production: >> Farm Life: High standards make dairy farm a winner

Nothing outperforms.

The Prairie Canola Variety Trials* (PCVT), have again acknowledged InVigor hybrids as the industry leaders where it counts most, YIELD. In 2008, the PCVT and Bayer CropScience InVigor Demonstration Strip Trials (DST) results prove again that InVigor hybrids out yield the competition by 5 bushels/acre or more. Nothing outperforms InVigor.

All of this is thanks to growers like you, who demand the best yielding canola year after year.

For futher information on these trials visit InVigorResults.ca or canola-council.org/pcvt.aspx. *PCVTs are weed free replicated trials coordinated by the Canola Council of Canada and measure the yield capabilities of all canola products entered. Thirteen years of number one performance is based on a combination of PCVT and independent third party trials from 1996 – 2008.

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

Always read and follow label directions. InVigorÂŽ is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

2 | Farm Forum | Summer 2009

06/09-10777FF

FarmFORUM

volume 23 | issue 3 | SUMMER 2009

contents >> PRINT TECHNOLOGY

BUSINESS

PRODUCTION

FARM LIFE

FarmFORUM www.farmforum.ca Publisher Bayer CropScience Editor Sherry Butt

COVER STORY

10

Grain carts increase harvest efficiency

Another strategy to extend the harvest season

5

Get ready for 2010 This year’s crops have something to tell you about next year’s input requirements

New green revolution anticipated

6

Agriculture under pressure to meet consumer demand

22 High standards make dairy farm a winner Vancouver Island dairy farmers find recipe for success

4 Editor’s note: embracing change and exploring new ways of doing things 13 Winter wheat joins the prairie mainstream: interest grows across the west 16 Grains join the energy economy: the link between crude oil and agriculture 20 Size really does matter: big bins lower per-bushel storage cost

contents >> WEB

FarmFORUM.ca

Associate Editor Dave Wreford Contributors Jennifer Barber, Scott Garvey, Joy Gregory, Paul Wells, Genesis Studio and Genevieve Simms Graphic Design Aaron Mumby Design Farm Forum is published seasonally by Bayer CropScience.

Contact Farm Forum at: Bayer CropScience #100 - 3131 114 Ave. S.E. Calgary, AB T2Z 3X2 T. 1 888-283-6847 F. 1 888-570-9378 E. farmforum@bayercropscience.com www.bayercropscience.ca Contents of this publication are copyrighted and may be reproduced only with written permission of the publisher, Bayer CropScience.

The views expressed are not necessarily those of the publisher.

Publications Mail Agreement Number 40743517 Registered in Canada Copyright 2009 Website www.farmforum.ca Return undeliverable copies to: Bayer CropScience #100 - 3131 114 Ave. S.E. Calgary, AB T2Z 3X2

Prairie producers slow to embrace tracks Tracks can significantly reduce soil compaction www.farmforum.ca/carttracks

Controlled-release nitrogen a “natural” for winter wheat

Biofuels weather high grain prices

Product helps meet crop’s unique needs

Expanding market may heat up competition for food crops

www.farmforum.ca/wheatnitrogen

www.farmforum.ca/biofuels

On the cover Jason Liechty, director of marketing for grain cart manufacturer Balzer Inc., demonstrates the company’s newest grain cart — the largest in the industry at 2,000 bushels — at the Farm Progress Show in Regina earlier this year.

Farm Forum.ca | 3

s h o r t ta k e s genesis studio

Stewart Brandt, North American breeding manager for Bayer CropScience, calls the latest Saskatoon research facility home.

There is more on farmforum.ca in july, bayer CropScience opened the doors on its $15 million state-of-the-art research complex near Saskatoon, SK. The central goal of the Canola Breeding Centre of Innovation is to help secure continual advancements of InVigor hybrid canola and support the Canadian canola industry as a whole. This new research facility brings all aspects of Bayer’s breeding program together under one roof for the first time since 2001.

Read all about it on page 7 and follow-up on the website with stories about Bayer’s other global initiatives including helping growers around the world work their existing resources harder and smarter and Bayer’s support of educational opportunities for children in developing regions. Enjoy! FF

4 | Farm Forum | Summer 2009

Editor’s Note In Business, embracing change and exploring new ways of doing things are keys to success. And farming is no exception. The stories in this issue will hopefully get you thinking about your own operation and offer some food for thought on how to deal with today’s agricultural challenges.

In our Marketing Minute we are reminded that if we expect different results by approaching problems in the same old way, we waste both time and money. Take time to get out of your office and into the field, have a good look around and gather information to protect this year’s yields and help you decide how to do things better in 2010.

As global food demands soar and available land to grow crops dwindles, farmers need to come up with ways to address this new reality.

Our production story on page 6 discusses the need for intensive research in agriculture to meet these new challenges.

There’s nothing like a new piece of equipment to make life easier on the farm. In our cover story you’ll learn all you need to know about grain carts and how they can help extend the harvest season.

If you are one of those farmers still reluctant to try winter wheat (turn to page 13), meet Clayton Gast, a Magrath, AB farmer who consistently harvests 50-60 bushels every year seeding 25 per cent of his land to the crop.

In our “grains join the energy economy” story on page 16, discover the demand link between crude oil and agriculture as demonstrated in the growing economy of China, whose affluent middle class has a big appetite for energy and western foods.

When it comes to on-farm grain storage, size really does matter, as you’ll read in our story on page 20. Grain growers need more storage space than ever before and the larger the bin the more money you save. FF

business

Get ready for 2010

By Joy Gregory

Practice makes perfect. But doing tions and what openers you used. Were the same thing over and over again while your seed and fertilizer placement deciexpecting different results wastes time sions the right ones for those conditions?”

With a growing number of farmers and money that could be spent making sure your farm meets profit expectations, using variable rate technology for fersays Roy Erickson of AgCoach, a busi- tilizer and herbicide application, this is ness and marketing advisory service for also a good time to look at varietal differences and herbicide effarms and ranches.

A retired farmer ficiency, says Gary Pike of turned consultant, ErPike Management Group Besides reaping what ickson knows that the (PMG), the ag consulting they sow, farmers bird’s-eye view farmers firm that offers AgCoach get from the driver’s as one of its services. need to think more seat of their combines Pike, who used to farm about selling what supplies essential infornear Lloydminster on the mation about the curAlberta/Saskatchewan they reap rent growing year. He border, cautions against also knows that same assuming new technolknowledge is available long before har- ogy makes farming easier. It won’t alvest. That’s why he tells farmers to get out ways work the way you think it should. of their offices and into their fields in late If anything, using precision ag technology June and early July “so they can collect probably makes July field scouting even the kind of hard data they need to protect more important. For example, if your soil this year’s yields — and make important tests recommended a particular fertilizer decisions about what they’ll do differently rate and it doesn’t seem to have worked in 2010.” in one field, then you’ll need to go back Besides old-fashioned scouting for and find out what happened. It might be signs of profit-sucking diseases, weeds something you can fix next year, or imand insects, Erickson wants farmers to prove this year with crop dribbling or take a tough look at the mechanics of banding, explains Pike. their spring seeding decisions. “Ask yourself: ‘did I get good emergence; did I drive Sell what you reap too fast; did I drive too slow?’ You want Besides reaping what they sow, farmers to identify all of the mechanical things need to think more about selling what they reap, says Pike. He figures the mayou could do better next year.”

And be sure to take good notes, he jority of PMG clients, most of whom adds. “You need to create a database that farm at least 5,000 acres, had close to 30 includes information about soil condi- per cent of their 2009 crop sold by early

summer. “If your crop looks better than usual, you’re probably undersold. If it’s a little dry, you could be oversold. This is a good time to start adjusting your 2009 sales based on yield projections and future price projections around supply and demand.”

July is also a good time to look at what’s in the field today and where prices might be a year out, says Erickson. “You may want to sell some of your 2010 seeded crop or at least get a good idea of where it’s going to price so you can work that into your 2010 break-even calculations.”

Farmers lose out if they think they don’t have a crop and therefore can’t sell it, Pike insists. “Look in the mirror and say: ‘if it’s good enough to sell this year, what’s wrong with selling some of next year’s crop?’ This is not complicated and grain companies are more than happy to put something on their books. It’s a good planning tool because it helps keep you focused on your break-even strategy.”

Since continuous improvement is important, July is also a month to review rotations, nurture good working relationships with input dealers and look at whether on-farm storage would help you lock in a good fertilizer price.

Taking charge It all boils down to knowing what you need to do to be profitable. “When it comes to growing canola, you’ll see costs from as low as $5 a bushel all the way up to $9 a bushel. What you need to know is a reasonable cost for your farm. What is the lowest cost per unit you can grow that crop for and still produce a viable yield that provides you with a good return on your money,” says Pike.

Erickson agrees. “Price,” he says, “is only one determinant of profitability.” FF farmforum.cA

Photo ©istock photo.com/imaginegolf

Your fields have something to tell you

m a r k etin g>>m inute

for more information visit us online online articles Store your fertilizer right where it’s needed www.farmforum.ca/fertilizer Scout to boost your database www.farmforum.ca/scouting additional resources Pike Management Group/Ag Coach www.farmforum.ca/agcoach Farm Forum.cA | 5

Production

Bayer research anticipates a new green revolution

By Scott Garvey

In the early 1960s, the USDA predicted that within a decade farmers would have to become much more efficient if they were to meet projected global food demands. Concerns triggered by the prediction proved groundless. Improvements in mechanization and, especially, agronomic practices soon spawned a green revolution in agriculture.

Today, with soaring world population and disposable consumer income, agriculture is under renewed pressure to meet ever-increasing demands. Production gains, however, will have to be made with dwindling access to arable land. United Nations estimates suggest that only about 30 per cent of the arable land that was available for agriculture in 1950 will be available to farmers by 2050.

And this time around, improved mechanization isn’t a viable option for improving efficiency. Instead, maintaining an adequate global food supply now depends on improving yields. “We need intensive research in agriculture to counter the challenges to food production and ensure that our agricultural resources are employed 6 | Farm Forum | Summer 2009

optimally,” says Dr. Friedrich Berschauer, bacterial leaf blight.

To address that problem, last year Baychairman of the board of management of Bayer CropScience. “We therefore need a er introduced a new hybrid rice variety called Arize Dhani that has greater than second green revolution.”

And nowhere is that more critical than 95 per cent resistance against all known in Asia and the developing world, where types of bacterial leaf blight. It can sigrice is a staple in local diets. Dr. Sushil nificantly out perform other varieties in regions prone to this Pandey of the Internayield-robbing disease. tional Rice Research In“When the disease hits, stitute in the Philippines Today, with soaring farmers who use Arize predicts that as early as world population and Dhani can produce up 2015 an additional 50 to 80 per cent more yield million tonnes will be disposable consumer than their neighbours needed annually to meet income, agriculture using classical varietworld-wide demand. ies,” says Arun Mittal, But access to suitis under renewed manager of able rice-growing land pressure to meet ever- rice-product Bayer’s bioscience diviin these regions is deincreasing demands sion in India. clining, due to competTo continue research ing demands. In China, into technical solutions for example, the ricegrowing area actually fell by three million and improved yields, Bayer has invested five million Euros in a new rice research hectares between 1997 and 2006.

And other countries, like India, are laboratory in Singapore. This facility plagued with low productivity. That’s due opened its doors in June 2008. Accordin part to the use of inferior non-hybrid ing to the company, the lab will use modrice varieties and severe yield losses to ern biochemical procedures to accelerate

Suherman Dinata, president of the Alam Makmur Sembada rice mill in Indonesia checks Arize hybrid rice for quality.

mine herbicide resistance. Now, however, Bayer researchers can test any genetic material taken from weed plants. By examining a weed’s DNA, researchers can see if the enzyme targeted by a herbicide has mutated. “That way, we can tell immediately whether a point mutation has taken place,” says Dr. Bernd Laber, a Bayer agronomist. Modified herbicide recommendations can then be made for use in the same crop year, which avoids wasting resources.

As the world’s population rockets toward an estimated 7.5 billion by 2020, triple the 1950 number, maintaining an adequate world food supply will present

significant challenges. “Humanity has to face up to all these challenges,” says Werner Wenning, chairman of Bayer AG. “Yet, challenges also offer opportunities.” FF farmforum.cA

the otherwise slow process of developing new varieties.

The research lab was located in Singapore because that puts it squarely in the heart of the world’s main rice-producing region. “This is the best place for the institute, because 90 per cent of global rice cultivation takes place in Asia,” says Dr. Joachim Schnieder of Bayer’s bioscience division.

But rice and the developing world aren’t the only focus of research efforts at Bayer. At the Nunhems breeding center in Brooks, Oregon, research efforts continue to develop new and better vegetable varieties. So far, the facility has developed an incredible 2,500 improved varieties.

This impressive record is due primarily to Bayer’s progress in biotechnology.

“Over the past 20 years, biotechnology has undergone massive expansion in terms of the range of methods available to scientists,” says Roger Muren, head of cell biology at Nunhems.

Aside from breeding new plant varieties, other agronomic work is underway at Bayer labs to assist farmers. That includes research into herbicide resistance in weeds.

In the past, weed seeds had to be sent to a lab, grown and then tested to deter-

for more information visit us online online articles Crop researchers move sustainability to centre stage www.farmforum.ca/sustainable Bayer grows kids as well as crops www.farmforum.ca/education additional resources Food and Agriculture Organization of the United Nations www.farmforum.ca/UNfood Bayer CropScience home page www.farmforum.ca/bayer

Photo (LEFT) courtesy bayer cropscience; (TOP RIGHT) courtesy bayer cropscience; (bottom RIGHT) genesis studio

Bayer canola research investment largest in Canadian history Bayer CropScience’s $15 million dollar investment in a new state-of-the-art facility brings the latest advancements in molecular breeding and greenhouse technology to drive development that will benefit Canadian growers and increase the value of canola — one of Canada’s greatest success stories.

The Canola Breeding Centre of Innovation near Saskatoon, SK, established in the late 1990s as home to Bayer’s canola research efforts, includes 400 acres of land. On July 22, officials cut the ribbon on the farm’s sprawling 36,000 sq. ft. greenhouse and laboratory expansion.

“This new facility will enable us to continue to do stateof-the-art research in canola for the Canadian market,” says Rod Merryweather, oilseeds business operations manager for Bayer CropScience. “At a cost of more than $15 million, it’s the biggest single canola research investment for Canada in our history.”

The research farm already has at least one major achievement under its belt: it is home to the development of InVigor hybrid canola, which has grown to become the marketleading brand in Canada. In fact, Merryweather says, “InVigor is now the biggest single canola brand in the world and more

Bayer’s new state-of-the-art research facility near Saskatoon, SK.

than 90 per cent of its sales occur in Canada.”

With the need for farmers to maximize economic returns, plant varieties like those under development at the Saskatoon research farm will play an important role in the future of Canadian agriculture. “This facility will keep Canadian farmers competitive in the global oil markets, whether they require the highest yielding varieties or most sought-after specialty oils,” says Merryweather.

This kind of investment by companies like Bayer is critical if world canola production is to continue to keep pace with the growing demand for canola-based oils. “We must continue to enhance canola quality if we are to remain the best vegetable oil in the market,” says Merryweather. FF

Farm Forum.cA | 7

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

Always read and follow label directions. Folicur速 is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

8 | Farm Forum | Summer 2009

Quality worth protecting.

FolicurŽ provides an unmatched level of complete disease protection in wheat. Protect your investment from disease pressures, including rust, tan spot and Fusarium head blight, which can diminish the yield and grade of your wheat crop. Folicur provides a level of security that you can’t afford to pass up.

06/09-9722-01FF

Farm Forum.cA | 9

Cover Story

s t r a c Grain t s e v r a h e s a e r c in

y c n e i c effi

By Sc ott Ga rv ey

This is Balzer’s 2,000 bushel grain cart, the largest in the industry. Want to watch a video outlining all the specs?

Visit www.farmprogressnews.com 10 | Farm Forum | Summer 2009

genesis studio

Producers shopping for their second or third generation cart almost always opt for more capacity

Combines have become the most complex and expensive machines grain growers own, so maximizing their efficiency is critical. That’s one reason more western growers use grain dryers. But in the past few years, they’ve increasingly turned to another strategy to extend the harvest season: grain carts.

“Three combines and a grain cart are like four combines,” says Raymore, SK, producer Dave Horvath. With a skilled driver, a grain cart can keep combines gobbling up crop non-stop instead of wasting time driving across fields to empty into a truck.

Most grain growers agree that trying to bring heavy trucks, like B-trains, into fields is just asking for trouble. Soft field conditions put added stress on driveline components, and the risk of getting stuck is high. So without a cart, combine operators have little choice to but to run to the edge of the field to unload.

Grain carts are ideal for running across stubble. “You have a lot more flotation with a grain cart and you reduce compaction with flotation tires,” says Jason Liechty, director of marketing for Balzer Inc., a grain cart manufacturer.

The cart’s wide body makes combine

unloading on the go much easier. “It’s a wide-bodied container,” says Paul Degelman of Degelman Industries, another grain cart manufacturer. “It’s a big target to hit.” And it is easier for a tractor pulling a cart to closely match a combine’s speed than it is for a truck. While unloading on the go, both combine operator and tractor driver can see how grain is piling up in the cart.

As grain carts gain popularity, prairie dealers are seeing increasing demand.

“In the past five years, (sales) have really taken off,” says David Sundlie, ag sales manager at Flaman Sales in Nisku, AB. Farm Forum.cA | 11

Cover Story

strength undercarriage riding on tridem axles. According to Liechty, Balzer has made the high-capacity segment its niche market.

Capacity isn’t the only feature grain cart customers are looking for. Some want hydraulic drive systems that allow a tractor, without a PTO, to pull a cart.

But although that makes it possible to use any high-horsepower tractor to tow a cart, there’s a price to pay in reduced unloading speed, which can hamstring a cart’s efficiency. Horvath went to a PTO when upgrading to his latest grain cart. “It’s about a third faster than hydraulic drive.”

Faster unloading can be a significant advantage. With PTO drive with largerdiameter unloading augers, some models can empty at speeds above 1,000 bushels per minute.

Many growers are choosing to include an electronic weigh scale when upgrading their carts. “I don’t think I’d operate without it,” says Horvath after including an optional scale on his current cart.

Some manufacturers are offering soft-

ware packages that store scale weights and allow them to be downloaded onto an office computer at the end of the day.

Grain carts continue to win over western producers, who increasingly see them as a cost-efficient alternative to adding another combine to their fleet. “If you talk to guys who use grain carts, there’s no way in the world they go without them now,” says Degelman. FF farmforum.cA

Kevin Kirk, a salesman at Murray’s Farm Supplies in Shoal Lake, MB, has also seen growing interest in carts. “Most are still buying their first (cart),” he says.

And for those first-time buyers, carts in the 750- to 800-bushel range are still popular, according to Kirk. Producers shopping for their second or third generation cart almost always opt for more capacity.

“Three years ago a large cart was 875 (bushels). Now, the vast majority of guys are buying 1,325 (bushels),” adds Sundlie. Manufacturers, too, are noticing the growing demand for larger carts in western Canada. “We’re seeing trends in Canada that mimic trends in the U.S. a couple of years ago,” says Shannon Grieshop, of J & M Manufacturing Co., another grain cart builder. “Producers want carts to hold more, unload faster and keep the combines going.”

And to meet demand for ultra-high capacity, Balzer Inc. is now offering a rangetopping 2,000-bushel model that retails for about US$119,000 and features a high-

for more information visit us online online articles Prairie producers slow to embrace tracks www.farmforum.ca/carttracks Find the right tractor for your grain cart www.farmforum.ca/carttractor additional resources Degelman Industries, grain carts: www.farmforum.ca/degelmancarts Balzer Inc., grain carts: www.farmforum.ca/balzercarts Bourgault Industries grain carts www.farmforum.ca/bourgaultcarts J. & M. Manufacturing Co., Inc. grain carts www.farmforum.ca/j&mcarts Flaman Sales, grain carts www.farmforum.ca/flamancarts

photo courtesy bourgault industries

Put grain carts to work in the spring As western grain growers integrate grain carts into their harvest operations and see efficiency gains, some think that’s only the tip of iceberg. They believe carts could also speed up seeding operations.

Equipment manufacturers agree. “Let’s start using them in the spring, too,” says Paul Degelman of Degelman Industries, which builds grain carts in Saskatchewan. He sees potential for getting seeders filled faster and more efficiently. But for most, the dual-season use of grain carts is still just an interesting idea.

“I think there’s a nursing component to grain carts that many are overlooking. The trend is in its infancy right now,” adds Degelman. And he says his company is keeping a close eye on producer interest in the concept.

“You’ve got to be quick at harvest, but you’ve got to be quick in the spring, too,” he adds.

To maximize a cart’s potential as a spring seed tender, manufacturers may need to offer additional features. A dualcompartment tank may be the most logical. Then seed and fertilizer could be delivered at the same time. But that modification would likely mean significant design changes or extra

12 | Farm Forum | Summer 2009

Grain carts driven by PTO rather than hydraulic systems typically have a much faster unloading rate. That goes a long way to increasing efficiency.

engineering, increasing a cart’s purchase price.

Whether multipurpose options like that could add to a cart’s market appeal is a guess right now, but Degelman is optimistic. “I think farmers are looking for a grain cart to be multipurpose.”

But there is one major drawback. Producers’ tractors already have a job in the spring. “We don’t use our grain cart in the spring because we have the tractor on the drill,” says Dave Horvath, a producer at Raymore, SK. Despite that, Degelman thinks the concept remains viable.

He’ll be keeping an eye on how grower interest develops. FF

Production

Magrath, AB farmer, Clayton Gast, seeds 25 per cent of his land to winter wheat and harvests about 50-60 bushels every year.

Winter wheat joins the prairie mainstream

Photo courtesy clayton gast

As arguments against growing winter wheat disappear, it’s showing up in more and more crop rotations By Jennifer Barber

Clayton Gast admits his biggest challenge with winter wheat is not giving in to the temptation to seed his whole farm to the crop.

“Every year I seed 25 per cent of my land to winter wheat,” says Gast, who farms 1,650 acres near Magrath, AB. “And pretty much every year, no matter if it’s wet or dry, I get 50-60 bushels at harvest. Growing winter wheat has a lot of advantages and gives consistent yields.”

Winter wheat is generating renewed

interest across the west. Ten years ago fewer than 200,000 acres were planted prairie-wide, but by 2008 more than 1.6 million acres were grown.

Despite the increase, some farmers remain reluctant to try winter wheat because of perceived issues with respect to hardiness, disease and markets. But Gast waves aside these concerns, and insists it’s not only because of his southern Alberta location, a traditional spot for winter wheat production.

“There are lots of great varieties out there now,” he says. “On top of that, we have chemistry that can deal with weeds and diseases. We have all the information we need to make winter wheat a top crop for the prairies.”

A reliable “practice crop” Seeding winter wheat helps Gast wind down after the craziness of harvest.

He enjoys seeding in the fall, when the weather is still nice, and it helps him relax Farm Forum.cA | 13

Production

a

We have all the information we need to make winter wheat a top crop for the prairies

A crop of winter wheat at the three-leaf stage.

A crop for the prairies “Winter wheat took off on the prairies once no-till farming became more common,” says Brian Fowler, professor, Department of Plant Science at the University of Saskatchewan. “Growers needed that standing stubble as a snow trap to overwinter the crop,” he says. “But it took a while to develop production practices for growing winter wheat. We have those now.”

Proper crop management is essential for consistently high yields, he cautions.

Fertilizer, seeding date and seeding depth 14 | Farm Forum | Summer 2009

are all keys to getting a good stand and a successful crop. With all that in place it’s very unlikely growers will run into any problems with winter survival, Fowler adds.

“In all three provinces we’ve often seen winter wheat out-yield spring wheat,” he says. “That’s not to say growers should abandon spring wheat. But adding winter wheat to their rotation is simple, it’s a high yielding crop, and it helps conserve soil moisture.”

Market demand for winter wheat continues to grow, says Fowler. Current varieties range all the way from feed to premium milling grades. And there is added potential for lower-protein winter wheat to supply growing ethanol markets.

Room to grow While many growers seed their winter wheat into canola stubble, Gast prefers barley stubble, which he says greatly reduces sawfly pressure. Winter wheat can also be an effective weed management tool. “It’s a competitive crop and it is already getting pretty big when some weeds and pests are starting to become a problem,” he notes.

Fertilizer timing and rates are more flexible with winter wheat, adds Gast.

“It’s not that it uses nitrogen any better than spring wheat; rather, fall rains (along) with retained spring moisture

mean that optimal rates of nitrogen can be safely applied.”

Issues with winter kill or germination have never come up, he says. New varieties virtually eliminate those risks.

“But if everything goes crazy and you do have a problem, there is plenty of time in the spring to decided whether to reseed a field.”

While prices at the elevator might not be as high for winter wheat as for spring, Gast says when growers consider the efficiencies gained through better use of their equipment and time, they’ll see the high value of a winter wheat crop.

“In the past two years in particular, my top crop in terms of yield and profit has been winter wheat,” he says. “Those who think it’s difficult to grow should go back and take another look at what’s out there.” FF farmforum.cA

and prepare for the winter ahead.

“I also call my winter wheat crop the test harvest,” he says. “It comes off a few weeks before everything else, and that gives us a chance to make sure all our equipment is working properly. It gets our bodies used to the longer hours and helps us get ourselves organized.”

A long-standing advantage of winter wheat is that it’s seeded and harvested off-season, making productive use of both time and equipment. Gast says the crop also helps him use his bins more efficiently. “Almost every year I can fill my bins with winter wheat, haul it to the elevator and sell it before the bins are needed for my other crops. Then I have less to pile outside at the mercy of the weather.”

for more information visit us online online articles Winter wheats play provincial favourites www.farmforum.ca/wheatvarieties Controlled-release nitrogen a “natural” for winter wheat www.farmforum.ca/wheatnitrogen additional resources Winter Cereals: Sustainability in Action www.farmforum.ca/sustainabilityinaction Bayer/DU program to increase winter wheat www.farmforum.ca/winterwheatprogram Ducks Unlimited’s agronomy program www.farmforum.ca/DUagronomyprogram

Winter wheat gets a lift from Bayer CropScience

Photo (left) courtesy bayer cropscience; (TOP RIGHT) ©iStockphoto.com/JLFCapture ; ( RIGHT) courtesy bayer cropscience

In a serious act of environmental stewardship, Bayer has committed $20 million to support Ducks Unlimited’s winter cereals work in Canada and the U.S. Bayer CropScience and Ducks Unindustry partners.” limited (DU) recently announced a DU’s research has shown that partnership that focuses on the vital the density of hatched nests in role winter wheat can play in sustainwinter wheat fields is 24 times able agriculture on the prairies. The greater than in spring wheat. The project, called Winter Cereals: Susorganization aims to demonstrate tainability in Action, involves a fivethe economic and environmental year, $20-million funding commitbenefits of including winter wheat ment from Bayer CropScience. in crop rotations.

“We needed to support something “Growing winter wheat has Winter wheat crops provide safe nesting tangible that could move Bayer to been an economical decision grounds for ducks and other waterfowl. the next level of sustainable managefor many growers as it often ment,” says Paul Thiel, vice-presiout-yields spring wheat by 10 to dent, industry relations with Bayer CropScience. “We can’t just 30 per cent,” says Thoroughgood. “But there are also many say we’re committed to sustainability: we need to demonstrate environmental reasons to grow winter wheat. For example, it it and we think this program shows that. Our ultimate goal is helps maximize the efficiency of inputs, reduce soil erosion and to see two million sustained winter wheat acres seeded in the there’s been great success with waterfowl and songbirds.” prairie pothole region.”

Some of the new funding has been allocated to winter wheat The project will fund significant research to develop new breeding programs to help accelerate the introduction of new winter wheat varieties, provide grower incentives, and fund varieties. Also, this year the program will support DU’s partnertechnical support and education programs. It will also promote ship with Viterra. As the premier delivery partner, that comimprovements and research in agronomic practices as well as pany will provide product and program incentives to help bring conduct waterfowl and environmental research. more acres into production. In addition, DU is undertaking “Bayer’s support of DU’s winter wheat program builds on a biological evaluation as part of the conservancy aspect of past successes and increases the breadth and depth of initia- the program. tives to encourage winter wheat production on the prairies,” “This agreement is a good fit with Bayer’s vision as a compaadds Paul Thoroughgood, regional agrologist with DU. “This ny,” says Thiel. “We want to offer innovative solutions to growsignificant industry investment will further raise the profile of ers to help them become more successful. This is helping with winter wheat and provides a platform for involvement by other their continued success.” FF Farm Forum.cA | 15

business

Grains join the energy economy

By Paul Wells

The Longsheng rice terraces in Guangxi, China, make good use of available land and water resources in the area.

The heady days of soaring food crop and energy prices have ebbed since mid2008 as the global recession tightens its grip. But longer-term, grain and oilseeds growers should see prices improve and profit margins strengthen.

According to Kenrick Jordon, senior economist for BMO Capital Markets, as economic expansion in China and other emerging countries gets back on the fast track, and the global appetite for alternative energy increases, the days of weak commodity prices could be a thing of the past.

“Frankly, my belief right now is that prices have hit bottom. In other words, I don’t think you would expect to see significant declines in key agricultural prices going forward,” Jordon says. “On the demand side, prior to the economic downturn China was a key driver in the growth of trade in agricultural and other commodities, and that’s going to continue.”

Over the past two decades, China made significant economic reforms that helped turn it into the fastest growing economy in the world. In 2007, the country’s GDP grew by 11.5 per cent to US$3.2 trillion but cooled somewhat to 16 | Farm Forum | Summer 2009

its slowest pace in seven years in 2008, between crude oil and agriculture cannot expanding nine per cent year-on-year. be understated.

Although the economic crisis has slowed “In my book (The End of Energy Obeits growth, an affluent middle class is sity: Breaking Today’s Energy Addiction emerging from among China’s 1.3 billion for a Prosperous and Secure Tomorrow), people. They have increasing disposable I highlight a very important principle that income and they want western foods.

I call the first principle of energy consumption: That is, the Agriculture and wealthier you get, the Agri-Food Canada estimore energy you use. I mates that over the next It makes sense that think you can apply for 10 to 20 years China to sustain a higher sure this principle to agwill become the largest food importer in the standard of living, China riculture one-for-one — the wealthier China gets, world, creating opporand other emerging the more high-valued tunities for Canadian economies will require foods it will consume,” producers. he says.

Just 15 per cent of exponentially more Tertzakian, who has China’s 9.3 million resources travelled China extensquare kilometre land sively to research his base is arable, and urban development is decreasing that amount by books, notes that China tends to import commodities and export final products, about one per cent annually.

According to Peter Tertzakian — chief reflecting the relative scarcity of natural energy economist for Calgary-based resources and the abundance of cheap laARC Financial Corp. and author of two bour in the country. books about how China’s thirst for enAs well, he says, increases in income ergy and other commodities has struc- and urbanization are leading to a shift in turally changed the world’s economic diets away from traditional food staples balance and markets — the demand link and toward meat consumption. That

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what the future held for the western Canadian grains and oilseeds industry but I’m more bullish now long-term,” he says. “I think the conditions are lining up to suggest we aren’t going to see the low, low bargain basement prices that we saw a number of years ago. And when prices do dip, grains will become attractive for fuel production. I think that tends to put a floor price under the whole complex.” FF

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means the North American agricultural sector should benefit from increased exports to China and price stability as the global supply-demand balance tightens in the coming years.

“It makes sense that to sustain a greater standard of living, China and other emerging economies will require exponentially more resources,” Tertzakian says.

According to the World Trade Organization (WTO), China’s livestock feed imports are expected to grow sharply over the coming decade, and its dominance of world edible oils imports will consolidate. With exports, including fruits and vegetables, also on the increase, China’s impact on world agricultural markets can only become stronger.

In essence, China’s policy goal has been self-sufficiency in food grains, and increased livestock production. That’s why its feed imports are expected to grow sharply over the coming decade. As well, the WTO says China is now the world’s largest soybean importer (at 43 per cent of global imports in 2006) and could increase its share significantly within a decade.

Such statistics don’t come as a surprise to BMO’s Jordon: “I think going forward that we’ll see fairly stable to rising prices and I think that in the medium to longer term prices will be higher,” he says.

Kevin Hursh, who operates a farm near Saskatoon and also heads an agricultural consultancy, says the growing economies of China and India combined with a strong push to increase the use of alternative fuels in the USA and EU will be harbingers of a strong sellers’ market for agricultural commodities in the coming years.

“The Barack Obama administration overall seems to be pretty supportive of ethanol and I think it’s going to be an important file to watch.” In the past few years, he points out, all that American

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corn going into ethanol had a big effect on the world’s supply-demand balance of all grains, not just corn.

“But I think we tend to discount the growing food demand in some countries, specifically China and India, and what they’ve added to the whole equation.

“A few years ago I was questioning

farmforum.cA

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for more information visit us online online articles Biofuels weather high grain prices www.farmforum.ca/biofuels additional resources Peter Tertzakian bio www.farmforum.ca/tertzakianbio BMO Capital Markets www.farmforum.ca/bmocapitalmarkets Hursh Consulting & Communication Inc. www.farmforum.ca/kevinhursh World Trade Organization www.farmforum.ca/wto

Farmers take the driver’s seat The world faces a permanent food crisis and global instability unless countries act now to feed a surging population by doubling agricultural output. That’s the conclusion of a report drafted for ministers of the G8 nations earlier this year.

The report, entitled “The Global Challenge: to Reduce Food Emergency”, says global food production needs to double by 2050 to feed about 80 million additional mouths each year.

The G8 report also warns of the food production challenges posed by “pronounced climate changes” leading to water shortages, as well as “higher input costs.”

“The issue of price volatility remains a crucial element for the world’s food security,” the report adds. “There is need for a fast increase of agricultural production in developing countries.”

Although prices for most agricultural commodities are down by as much as 4050 per cent from the all-time highs of 2008, they are still well above their average yearly levels prior to last year’s spike. In fact, since the start of this year, wheat and corn prices have risen by 15 per cent, and soybeans by 20 per cent. Additionally, domestic prices remain close to last year’s records in many developing countries and are even higher in some.

International watchdog organizations are weighing in on what they see as a pending food shortage. In a recent report, the London-based think tank, Chatham House, said that the late 2008 fall in food prices is only temporary and that prices are set to resume an across-the-board upward trend once the world emerges from the current economic downturn.

Longer term, the report states, climate change, higher energy costs and falling water availability will push prices higher. These pressures will be heightened by “competition for land and higher demand resulting from increasing affluence and a growing population.” FF

Farm Forum.cA | 17

bayercropscience.ca or 1 888-283-6847 or contact your Bayer CropScience representative. read and follow label 18 Always | Farm Forum | Summer 2009directions. Proline™ is a trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

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06/09-9720-01FF Farm Forum.cA | 19

Technology

Size really does matter

By scott garvey

Producers are increasingly turning to larger capacity storage bins to cut costs.

As farm consolidation continues, the traditional approach to grain storage may require a rethink. When family farms were smaller and all fields close together, storage could easily be centralized. But for today’s large operations, other strategies may make more sense.

For permanent storage, western farmers now look for very large capacity.

“There’s no doubt that bins are getting larger and larger,” says Jim Weeda, sales and marketing manager for Westeel, a steel grain bin manufacturer.

Weeda says in the past three or four years, 48 ft.-diameter bins that hold up to 56,000 bushels have become very popular. “The preference before was more around the 18 ft. bin that you could put a hopper under,” he adds.

Aside from the fact that grain growers need more storage space than ever before, larger bins offer economies of scale. A 48 ft. model has a suggested retail price close 20 | Farm Forum | Summer 2009

to $1.20 per bushel. That’s significantly bins cost more. According to Smith, a less than the 18 ft. model priced about 4,120-bushel epoxy-coated hopper bin will set you back about $4 per bushel. $2.45 per bushel.

Buyers are also looking beyond the traDeciding where and how to locate storage ditional corrugated bin. According to Steve facilities are also prime considerations. For Smith of Meridian Bins in Lethbridge, AB, Frank Helen of Oakbank, MB, putting all his company’s epoxy-coatof his bins in one place and ed, smooth-walled models erecting a dedicated leg to offer flexibility to store fill them has paid dividends.

Aside from the fact both grain and fertilizer.

And by building a dryer that grain growers That makes it easier to into the system, he has exbuy and store fertilizer in tended his harvest season need more storage the off season when prices and improved combine efthan ever before, are typically lower. ficiency. “You can buy a larger bins offer Smith says these bins second combine or put up were initially offered for a system like this,” he says. economies of scale specialty storage of seed Many growers, howand fertilizer, but growers ever, must move grain have come to appreciate their high-qual- long distances just to get it into storage, ity storage and longevity. “We never ex- increasing transportation costs and slowpected to sell them to farmers for straight ing down harvest operations. As a result, grain storage,” says Smith. But that’s the large-scale producers may add temporary trend he’s seeing now, even though these storage such as portable ring systems that

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can easily be set up in the field. Russell Roznik of Oakbank, MB, tried this approach for the first time during his 2008 harvest.

Fifty feet in diameter and two tiers high, the temporary structure held about 17,000 bushels of oats. “It worked out better than I expected,” he says. The only problem he encountered was keeping the covering tarp fastened on windy days.

Roznik was able to leave his oats in the field until he could deliver them directly to a terminal, moving the pile only once. And the set-up was inexpensive.

“The whole thing, with tarps, cost about $1,200 to $1,300,” he says. So his perbushel cost was only about 13 cents.

Roznik estimates he lost less than 100 bushels to spoilage, despite a wet season.

“I was shocked. I was expecting three or four inches of spoilage. But we swept it right down to the dirt,” he says.

Harry Brook, a crop specialist with Alberta Agriculture, says you can expect to lose five to 10 per cent on uncovered piles stored directly on the ground. So Roznik’s investment in temporary storage rings and tarps proved to be money well spent. Systems like this are becoming in-

creasingly popular because they are portable and can handle yield surges in good years. And they are an economical way to add flexibility to farm operations.

With some of the bumper 2008 crop still in storage on prairie farms, growers may need more storage capacity for the 2009 harvest. The answer might lie in large-capacity storage. But large grain masses can be at risk for developing hot spots that lead to spoilage. Brook says careful monitoring of large bins and storage piles is therefore advisable. FF farmforum.cA

Flat-Bottom Bins

for more information visit us online online articles Keep stored canola dry and cool www.farmforum.ca/storagecanola Grain baggers offer storage flexibility www.farmforum.ca/flexiblestorage additional resources Westeel grain bins www.farmforum.ca/westeelgrainbins Meridian grain bins www.farmforum.ca/meridiangrainbins Alberta Agriculture, monitoring grain in storage www.farmforum.ca/grainstoragemonitoring Behlen grain storage www.farmforum.ca/behlengrainstorage Inland terminal association facility list www.farmforum.ca/facilitylist

Photo (LEFT) courtesy westeel; ILLUSTRATION (RIGHT) GENEVIEVE SIMMS

Producers line up to buy condo storage Hauling grain directly from combine to terminal is a potential money-saver. But even when that’s possible, producers have to settle for the offered price at their delivery point. Now there’s another option: condominium (condo) storage.

Condo ownership gives you the right to deliver grain to a terminal for storage, without committing to sell it immediately. This concept seems to be catching on. In fact, producer demand for condo space in many locations on the prairies currently outweighs supply. “There is more demand to buy than to sell,” says Andrew Travers, manager of the Prairie West Terminal in Plenty, SK. For those fortunate enough to be near a terminal that offers condo storage, there are several advantages to buying storage space. “I don’t have to worry about deterioration in storage,” says Shaunavon, SK, producer Brett Meinert. “That’s a marvellous perk.” Meinert invested in condo space at his local terminal and has no regrets. “It’s almost 10 per cent of my total storage capacity,” he adds.

And grain in storage at a terminal can be “delivered” by a simple phone call, a real advantage during cold months. “In the winter I don’t have to go out and shovel (to deliver grain),” says Meinert.

Travers says producers typically prefer to use their own on-farm storage for non-board grains. Condo storage at Prairie West is mostly wheat and durum. That works well for the terminal, he adds. “It’s much easier for us to manage those stocks.” FF

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fa r m l i f e

High standards make dairy farm a winner In a continuing drive to improve their herd and their overall operation, these Vancouver Island milk producers have found a recipe for success By Jennifer Barber

Even when their operation was small, David and Lisa Taylor aimed high.

Their goals of high quality genetics, high quality milk and overall high standards are cornerstones of a successful familyowned dairy farm.

“Farm size does not affect the ability to strive for excellence,” says David.

“You can never aim too high in terms of genetics and we’ve worked hard to breed good genetics into our herd.”

The Taylors were named national cowinners of Canada’s Outstanding Young Farmers’ (OYF) Program for 2008. The competition looks at the work of participants aged 18-39 who make the majority of their income on the farm. It then narrows that group to seven regional winners across Canada. From that seven, two national winners are chosen each year.

The Taylors own a 160-acre dairy farm together with David’s father and brother. Located in Courtenay, BC, on Vancouver Island, the picturesque farm is a mix of forest, pasture and farmland bordered on two sides by a river. They bought the property in 1995 and have gone from a 50-animal herd to more than 300 registered Holsteins, including 150 milking cows.

22 | Farm Forum | Summer 2009

when the economy is tough,” says David. “But as a thirdgeneration farmer, dairy farming was something I knew I wanted to come back to one day.”

Lisa, the child of two college professors, never saw herself as a farmer. She met David while in university and they worked together in The Taylor family L to R: David, Christian, Jordan, Lisa and Annemarie. the Vancouver area for the first several years of their marriage — Lisa as a Building on family tradition David was raised on his family’s dairy teacher and David in banking. Once their farm just outside Victoria, BC. While this first child was born, however, they decidupbringing instilled in him the desire to ed city life was not for them.

While David’s father, Joseph, had one day return to his roots, it also taught him to exercise caution and to be pre- continued farming with a small herd in pared for difficult times. The family sold Duncan, BC, in 1995 the Taylors had the the farm during an economic downturn opportunity to go into partnership with his father and brother, Will, at the current in the 1980s.

“It’s something you never forget and Courtenay location. It was an opportuit’s something that’s always in the back of nity they couldn’t pass up.

David and Lisa now have three chilyour mind going forward, especially now

Defining quality As soon as the families bought the farm, they began to expand and improve the existing dairy operation. David’s dad brought his 50 cows from Duncan and merged them with the newly-purchased Courtenay herd.

They upgraded the feeding system and built two houses on the farm for the brothers’ families.

And because they draw water from a river, Lisa explains, “we set up a new piping and pumping system to minimize any impact we have on the environment.”

They’ve combined a genuine passion for cattle and good quality stock into their project of breeding good genetics into the herd. In 1995 they had no cows in the top scoring category of “excellent.” In 2009 their herd average score is well above the breed average with eight cows having scored “excellent” along with many rated as “very good.”

Also, they’ve actively sped up the introduction of good genetics to other herds through an embryo transfer program, exporting embryos from certain cows both domestically and internationally.

“Our ultimate goal is to become master breeders, which represents the pinnacle of quality breeding in our field,” says David. “To do this you need 16 years of reference points and we have about 12 so far that qualify. We’ve seen a huge improvement in our herd over the past couple of years, so we are well on our way to reaching this goal.”

Their success has been recognized with the achievement of the Canadian Quality Milk (CQM) label. CQM is a program that monitors standards and procedures to ensure food safety on-farm. They also participate in a dairy herd improvement program that has seen their cows win production awards for Vancouver Island and BC. Quality is what David and Lisa aim for,

Lisa and David with their calves and (inset) a school group on a hayride at the Taylor’s campsite.

Our ultimate goal is to become master in both their herd and their milk. “In breeders, which represents the pinnacle of two of the past quality breeding in our field three years we have had the overall top quality milk on the island,” says David. “Obviously you need clude with time at the campground. “This to have good production and we want is very rewarding for us,” she says. “It that. But our ultimate goal is a high-quality keeps us connected to the community.”

“It’s important to us to be involved in end product.” the agricultural community,” adds David.

Bringing islanders to the farm “We want to remain on the forefront of Not all of their land is farmed. Ten years the industry in B.C. because it helps inago they decided to give back to their crease awareness in agriculture.” He’s community by developing a 20-acre currently president of the Vancouver Iscampsite in the forested area of the farm. land Holstein Club and vice president of This picturesque location can accom- the B.C. Dairy Foundation.

The Taylors were nominated for the modate up to 250 campers, and features hiking and bike trails, a sand volleyball OYF program by a 4-H leader and are court, a playing field for other sports ac- thankful they accepted the challenge. tivities, a covered multi-purpose area for “This is the kind of program where you can meet a lot of people from so many camp meals, zip-lines and a super swing.

“Our Selah Campsite is part of our types of farm, and make lifelong friends,” contribution to agri-tourism,” says Lisa. says David. “We’re very glad to have had “It’s rustic and it’s beautiful, and it is this opportunity, and we are taking part not a venture we put together for profit. in planning for the 2010 OYF nationals We wanted people to be able to experi- in B.C.” FF ence the beauty of the area. We maintain for more information visit us online it through donations and with the help additional resources of volunteers.”

Viewfield Farms She says the campground is a popuwww.farmforum.ca/viewfieldfarms lar spot with church groups and schools.

Canada’s Outstanding Young Farmers’ Program Lisa works with the schools to develop www.farmforum.ca/oyfprogram field trips to the dairy operation that confarmforum.cA

PHOTOS (TOP LEFT) COURTESY THE TAYLORS; (BOTTOM LEFT) JOANNE STOECKL; (TOP RIGHT) COURTESY THE TAYLORS

dren, Jordan 14, Christian 11 and Annemarie 7. While they all help out on the farm as much as they can, Jordan is now old enough to travel with his dad and be a big help on the farm. In addition, the whole family is actively involved in 4-H.

Farm Forum.cA | 23

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