Farmforum fall 2009

farm forum is online

INSIDE: oyf regional winners

p. 13 size up your foreign competitors

FarmFORUM www.farmforum.cA

Bayer CropScience supporting Canadian farm families Fall 2009 | $5.00

canola pushes wheat off its throne

PLUS:

Look for portability and speed in office tech >> Technology: Put your suppliers to work for you >> Business: Build disease resistant rotations >> Production: >> Farm Life: Shop online for convenience and selection

Makes the hair on the back of my neck stand up.

At harvest, I see the endless fields of InVigor® hybrid canola and I just can’t control myself. The superior genetics of InVigor hybrids get me excited. The early season vigor, excellent stress tolerance and of course the incredible yield. It’s the best part of the season and growing InVigor makes it even better.

Nothing outperforms.

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

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

09/09-11846-04B

FarmFORUM

volume 23 | issue 4 | FALL 2009

contents >> PRINT TECHNOLOGY

BUSINESS

PRODUCTION

FARM LIFE

FarmFORUM www.farmforum.ca Publisher Bayer CropScience Editor Sherry Butt Associate Editor Dave Wreford

20

13

Look for portability and speed in office technology

Get a global perspective on farming

Your office technology should help you put money in the bank

Overseas ag tours can teach you a lot

COVER STORY

10

6

Canola pushes Shop when it’s wheat off its throne convenient for you: buy online No longer a “special” crop, canola now rivals wheat in seeded acres

Internet changes the way families manage their daily routines

4 Editor’s note: Changing and growing in the global economy 5 Talk price, service to suppliers: Here’s how to help your farm input suppliers work for you 16 Build disease-resistant rotations: Strategies to keep diseases at bay 22 Customer satisfaction guaranteed: OYF regional winners showcase innovation

contents >> WEB

FarmFORUM.ca

Contributors Joy Gregory, Cindy Bablitz, Scott Garvey, Jennifer Barber, Genesis Studio and Genevieve Simms Graphic Design Aaron Mumby Design Farm Forum is published seasonally by Bayer CropScience.

Contact Farm Forum at: Bayer Crop Science Suite 200 160 Quarry Park Blvd SE Calgary, AB, T2C 3G3 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 Crop Science Suite 200 160 Quarry Park Blvd SE Calgary, AB, T2C 3G3

Bring the city to your farm China: wild card in the canola market Agri-tourism is the fastest growing segment of many rural towns

High import duties make China an upredictable buyer

www.farmforum.ca/agritourismonfarm

www.farmforum.ca/canolainchina

Internet: speed matters!

Canadian farmers quick to sign up for high-speed service

On the cover Doug Robertson, a producer from Crossfield, AB, is just one of many prairie farmers reaping the benefits from growing canola.

The crop has now surpassed wheat in total seeded acres and saw a 21 per cent jump in seeded acres since 2006 compared to just 4 per cent for wheat.

www.farmforum.ca/highspeedinternet Farm Forum.ca | 3

s h o r t ta k e s

Editor’s Note

Short, Quick, Easy Thanks to everyone who completed the Farm Forum Survey we recently conducted online. Your evaluation and advice is appreciated and helps us make Farm Forum better as we move forward.

One thing the survey told us was that not everyone knows what’s online at FarmForum.ca. Here is a short, quick and easy lesson on how to use the site.

Related Articles

At the end of each article, other short articles related to that topic appear. Go to these for added information not found in the magazine.

We also supply links to outside sources of information related to the topic. Go to these for a wider view of the topic.

On the site itself is a link to short articles from the annual AgProgress conference we sponsor. Go there for leading edge ideas and concepts.

Video also appears on the site, focused on topics important to you. Right now you can amaze yourself at the technology Bayer is using at the Canola Breeding Centre of Excellence in Saskatoon.

Join Farm Forum on the web. It’s all designed to be short, quick and easy to read. Let us know how we’re doing. We always appreciate your comments. FF farmforum@bayercropscience.com

Outside Sources

Site Video

Conference Link

4 | Farm Forum | Fall 2009

you can’t escape technology. It’s everywhere. New, interesting devices and impressive software are popping up faster than weeds. But, are any of these things really going to help you run your farming operation better? As you’ll read in our story on page 20, new technologies should make your life easier and your farm more profitable, otherwise you should think twice about buying them. Here you’ll also discover how to make good decisions about which high-tech devices and software applications are right for you.

When you live in a rural community, it doesn’t take long to realize the benefits of shopping online. No more driving to the nearest retail hub only to find that what you came to purchase is out of stock or not available in your area. And, who has time to comparison shop to ensure you get the best value for your money? Thanks to the Internet, you can do that all from the comfort of your home. Even the biggest reason for not shopping online — security — has been addressed by most retailers with secure payment sites.

If you’re not changing, you’re not growing. As you’ll see in our cover story, the prairies are awash with bright yellow rather than gold, as canola overtakes wheat in the total number of seeded acres. And as consumers change their eating habits to more healthy foods there is money to be made in the edible oils business.

Another way to change and grow is to look at how farmers in other countries run their farming operations and market their products. In our agri-tourism story on page 13, you’ll see how experiencing other cultures’ farming practices can help you improve your operations.

And finally, we feature three regional winners of the OYF program, whose willingness to change has been their key to success. FF

business

talk price, service to suppliers

m a r k etin g>>m inute

By Joy Gregory

Ag management guru Gary Pike whether fertilizer and/or crop protection thinks farm supply companies have agents are needed.

This strategy seeks common ground, something to learn from international retail giants like Wal-Mart, which use so- explains Pike. “It’s nice to be able to deal phisticated information tracking systems with the same person all the time, but to figure out what their customers want that’s not necessarily what’s going to hapin terms of merchandise and service. Un- pen in today’s farm retail business. Your fortunately, many farm supply companies goal here is to be the ‘best customer.’ You don’t have that capability so Pike advises want a competitive price and a workfarmers to be proactive. Organize your able delivery time because you’re helping own data, he suggests, and personally (your suppliers) plan their business, too.”

Loyalty still matters to Rob Pettinger deliver it to your suppliers, setting the stage for customer/supplier relationships who farms 2,200 acres of canola and based precisely on what your farm actu- wheat near Elgin, MB. With three grain companies and several crop input dealally uses and needs.

“Decisions about who you buy farm ers within about 80 km of his farm, supplies from probably come down to Pettinger definitely shops around for price, but tends to three things: service, deal with the same comprice and (timely depanies “as long they’re livery.) I think you can The goal is to help competitive.” He agrees make improvements in your suppliers put with Pike’s contention each area, but, to do that relationships matthat, you need to put you first ter — and personal relamore emphasis on gettionships matter more. ting suppliers really good information about what’s happening on “You do need to get to know people and your farm,” says Pike, CEO, Pike Man- they need to get to know you.”

The president of the Manitoba Canola agement Group (PMG). “The more they know about what you need, the better the Growers Association also admits farmers need to share more information about chance they can deliver it.”

Likening his approach to the way their experiences with suppliers and what Wal-Mart stocks particular stores based they do to make these relationships work. on a wealth of data including previous “We don’t talk about this over at the cofsales and neighbourhood demographics, fee shop and we probably should.”

Pike says farmers could make better use of their farm data to build relationships Time counts with suppliers. It’s all about doing busi- With so much good agronomic information readily available to farmers through ness better, he adds. the Internet, fewer producers want to attend multiple field days or call on the Share data that matters Say you want to grow canola, for exam- services of a supplier’s agrologist during ple. Instead of just haggling over seed or the growing season. “But you still need to input prices, Pike suggests you give sup- build a relationship with that company,” pliers solid data about your crop plans says Pike. He recommends farmers set up such as proposed seeded acreage; field meetings to talk over their situation facelocations; planned seeding dates; and to-face. After you tell suppliers what you

need, give them time to get back to you with a comprehensive strategy that addresses specific concerns, like input delivery dates, storage, or the problems associated with buying from a single company but having to deal with multiple sales offices because your land is located in different service areas.

“Some dealers are putting packages of inputs out in fields close to the time a farmer needs them. Others are picking up empty containers. How can they plan to do this if they don’t realize how it will help your business?” says Pike.

It’s good advice, says Jerry Bouma of Toma & Bouma Management Consultants, which typically serves the input industry rather than farmers. He says farm suppliers that want long-term relationships with their clients can benefit from more guidance from farmers about what those relationships can look like. “Today’s farmer is very business minded and looks for expertise that will help him or her meet objectives,” says Bouma. Good information is essential to suppliers’ ability to “bring forward options or considerations that customers may not have thought of.”

Pike’s final point? Seek to “win” in all three areas: service, price and timely delivery. “The goal is to help your suppliers put you first.” FF farmforum.cA

Photo ©istock photo.com/stevecoleccs

Here’s how to help your farm input suppliers work more efficiently for you

for more information visit us online online articles Tighten those supply-chain links www.farmforum.ca/supplylinks Customer loyalty? Show them the money www.farmforum.ca/supplierloyalty additional resources Pike Management Group www.farmforum.ca/agcoach Canadian Farm Business Management Council www.farmforum.ca/myfarmbusiness Toma & Bouma Management Consultants www.farmforum.ca/tomaandbouma Farm Forum.cA | 5

fa r m l i f e

shop when it’s convenient for you: buy online

By Cindy Bablitz

By the 1970s Simpsons-Sears had cornered the market for shopping from the convenience of home. Today, however, the Simpsons-Sears catalogue is a quaint bit of nostalgia you can buy, after a quick Google search, from antique and collectibles dealers. That’s how the evolution of shopping at home is literally changing the way rural families manage their daily routines.

“We’ve ordered from Amazon, Future Shop, Chapters, Ticketmaster, eBay. And just yesterday I received my first diabetic supplies from an online order,” says Pam Laricchia, a mother of three living in rural Ontario about an hour’s drive from the nearest retail hub.

“Usually, shopping online is a little bit cheaper than going directly to the store,” she adds, “But for us, the big deal is convenience. I can shop on my schedule.”

Laricchia, like a lot of rural folks, has a schedule that seldom coincides with store hours. Nor can she afford to spend time comparison shopping to get the best deals. Retailers recognize this.

And they’ve responded with user-friendly websites offering not only the convenience of 24-hour-a-day shopping, but the competitive advantage of real time access to information that helps customers make more educated buying decisions, all from the comfort of home.

Not only small items like books, movies and clothing are bought online. Major pieces of farming equipment, electronics and machinery of all types change hands in market-influencing numbers through the world wide web.

Brennan LeBlanc, territory manager in Saskatoon with Ritchie Bros. Auctioneers says, “Twenty five to 35 per cent of our winning or runner-up bids come into the auction via the Internet.”

That means a quarter to a third of some US$3.57 billion of farm and other heavy equipment sold annually at Ritchie Bros.

6 | Farm Forum | Fall 2009

changes hands without physical hands ever being shaken. And RBAuctions. com is just one online conduit where a significant volume of agricultural-specific equipment is traded.

In August, 2009, a typical month in a typical year of over $4 billion in sales, 83,470 pieces of equipment were bought and sold through Iron Solutions, the largest online marketplace for new and used agricultural, industrial and outdoor power equipment. “We provide informa-

tion services up and down the equipment value chain,” says Scott Derksen, the Saskatoon-based company’s chief information officer.

He goes on to explain that the realtime information — equipment values, detailed product information, links to equipment manufacturers and financial tools to name a partial list — available through Iron Solutions allows buyers and sellers to make very informed decisions quickly and easily.

Protect your online identity

in rural Ontario about an hour’s drive from the nearest major retail hub.

The “s” at the end of https means the site is encrypted — a high level security process that scrambles online communications. This vital security assurance appears on most online retail websites. “I’ve actually not bought things I’d planned to because an e-commerce page’s URL didn’t have the ‘s’ at the end of http,” says Laricchia.

Follow these further suggestions to protect yourself when shopping online: • Once a year do a credit bureau check on yourself to see that no one is trying to obtain credit using your good name.

• Use a strong password with a combination of upper and lower case letters

Today, online shopping is a far cry “We even ordered our TV online, and from past images of candy-eating Stepford when we got it and the colours weren’t wives curled up with their phones at home, working properly, the supplier sent the placing orders for cheap jewellery from delivery company back to our door The Shopping Channel. With online shop- to pick up the broken one and give us a ping now such a big new one.” part of the fabric of Laricchia knows retailing, infrastructhat for her rural [Online shopping] offers a ture that simplifies online shophuge variety of choices that family, shipping, handling, ping is now a way of simply wouldn’t be available life. It offers a huge returns and exchanges has become very variety of choices even if a shopping centre user friendly. that simply wouldn’t was right next door “We’ve always be available even if a had good turnshopping centre was around with delivery times, usually get- right next door. ting what we’ve ordered within two or But, as with anything, there is a downthree days of receiving the e-mail telling side to shopping online. You sacrifice a us the order is confirmed and on its way,” certain level of customer service and the says Laricchia. enjoyment that comes from shopping in

and numbers. Avoid using anything predictable such as your mother’s maiden name, your own middle name, your children’s names, or your birthdate, phone number or address.

• Use a different password for every site you visit. Keep your record of passwords in a safe, inconspicuous spot. Change passwords regularly, and protect them as you would the key to your house.

• Record the transaction numbers of all online purchases, and/or print transaction receipts.

• Keep your virus protection software up to date and use it to scan your computer frequently. These functions can be set to trigger automatically at set times or intervals. FF

person and supporting local businesses.

Families who choose to live in rural areas know why this lifestyle change is such a gift. With the advent of unlimited, convenient and safe online shopping options, access to even more gifts is only a click away. FF farmforum.cA

Photo (LEFT) ©istock photo.com/sjlocke; (right) ©istock photo.com/nicks

Paying for purchases online without any face-to-face interaction can leave the uninitiated feeling a bit insecure. But with proper precautions, shopping online is as safe as walking into a store and paying for your item there.

“Identity theft occurs when someone is able to acquire key pieces of information about you,” explains Calgary Police Service Constable Kathy Macdonald.

This can happen not only when shopping online, but by divulging personal or financial information in chat rooms, on genealogy sites and in potentially bogus surveys either online, over the phone or door to door.

“Invest in a cross-cut shredder and shred personal and financial documents including those pre-approved credit card applications,” she advises. Anything you can do in real life to minimize the opportunity for identity thieves or fraudulent credit users to get personal or financial information about you is one protective step worth taking.

Once you’re shopping online, be aware of, and use, certain security steps in place to protect yourself. “When I’m shopping online and get to the payment process, I always make sure the URL (website address) starts with https,” says Pam Laricchia, a seasoned online shopper who lives

for more information visit us online online articles Farm auctions go global www.farmforum.ca/onlineauctions Used equipment valuation made easy www.farmforum.ca/onlineequipment additional resources Online shopping at ebay www.farmforum.ca/ebay Ritchie Bros. Auctioneers www.farmforum.ca/rbauction Used tractors and other farm equipment www.farmforum.ca/ironsearch Farm Forum.cA | 7

Anything less would be stealing.

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

8 | Farm Forum | Fall 2009

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Farm Forum.cA | 9 09/09-11928B

Cover Story

Canola pushes wheat off its throne

By Scott Garvey

The gold band along the bottom of Saskatchewan’s provincial flag represents the vast wheat fields that once dominated the south half of the province. Today, a bright yellow band would be more fitting.

10 | Farm Forum | Fall 2009

Prairie farmers could soon see King behind spring wheat.

Although wheat has seen a small rise Wheat relinquish his throne to Queen Canola. And Saskatchewan leads the in seeded acres since 2006, roughly four revolution with slightly fewer than 7.65 per cent, it’s paltry compared to canola’s 21 per cent jump over million canola acres in the same period. And 2008. That contrasted The primary reason economics is the drivwith only 7.5 million ing force behind canola’s acres of wheat, down it’s so important is it popularity. “Farmers are significantly from an allis a cash-flow crop. growing canola because time high of 18.5 million they’re making money in 1967.

It’s a crop you can growing canola,” says In 1956, when Stasell anytime Richard Phillips, executistics Canada started tive director of Grain counting, growers seeded rapeseed on only about 156,000 acres. Growers of Canada.

He believes producer profits are a diBut in the 1970s, plant breeders developed canola and that changed everything. rect result of the research that has gone By 2008, canola was seeded on a record into tailoring canola to meet end-users’ 16.1 million acres, only about 1.5 million needs. “In the early days of this crop

Photo: genesisgenesis studio studio

Doug Robertson, of Crossfield, AB, likes canola because he can sell it any time for cash.

there was a lot of public sector research.

The private sector has accessed that and built on it,” he adds.

Phillips says private-sector research investment might not have happened if canola hadn’t been an open market crop, which means new varieties do not have to clear the same licensing hurdles necessary with cereals.

Doug Robertson, a producer from south-central Alberta, agrees and notes the open marketing of canola has one other advantage for producers — the crop can be sold any time for cash. “The primary reason it’s so important is it is a cash-flow crop,” he says. “It’s a crop you can sell anytime.”

With an increase in worldwide demand for all oilseeds, Canadian producers have

Seeded acreage increase since 2006

wheat

canola

4%

21%

boosted acres devoted to competing oilseeds as well. In 2009, flaxseed ended its slide and seeded acres jumped to 1.7 million. Soybean acres, too, climbed and are now pushing the 3.5 million mark, with overall production expected to be a record 3.48 million tonnes.

But it’s in the edible oils sector where canola has a marketing advantage over

other oilseeds. Appealing to increasingly health-conscious consumers, canola oil has high levels of beneficial fatty acids, along with the lowest saturated fat percentage of any major vegetable oil.

In 1985, when canola was granted GRAS (Generally Recognized as Safe) status by the FDA in the U.S., new edibleoil opportunities skyrocketed. Today, the Canola Council of Canada is encouraging growers to further increase production to feed that expanding market.

Also, canola oil’s good cold-weather viscosity has refiners eyeing it as a preferred base for biodiesel. That market could be very important for non-foodgrade oil as biofuel-content mandates for diesel are implemented.

Now, farmers in other parts of the Farm Forum.cA | 11

Cover Story

Photo (Left): genesis studio; (Top Right) courtesy bayer cropscience

Oilseeds face off over saturated fats

156,000 16.1 million

world share Canadian growers’ enthusiasm for canola. While Canada grows more tonnes than any other single country, the EU as a whole boasts higher overall production. And China’s rapeseed output surpasses Canadian canola.

Private-sector investment continues to enhance the crop’s popularity among growers. Indeed, without this investment, canola could easily have remained just a minor specialty crop. Production difficulties in the early years had farmers shying away. “It was a brutal crop to grow,” recalls Robertson. “You’d have to get up in the morning and breathe calmly.

It was so frustrating to swath.” As well, weed control was expensive and sometimes disappointing.

But new varieties and herbicide tolerance changed all that. “When we were 12 | Farm Forum | Fall 2009

first growing canola the cost of chemicals was really high,” says Robertson. The chemical load (today) has been reduced significantly in these (herbicide tolerant) crops. You can use much smaller amounts of safer chemicals.”

The corporate investment that brought such a dramatic rebirth for canola is spreading to other crops. An announcement this summer that Bayer CropScience will invest €750 million ($1.2 billion) between 2008 and 2012 in new global wheat development programs signals a new era for cereals, too. That funding is expected to produce improved wheat varieties for the marketplace as early as 2015. FF farmforum.cA

2006 1956

Canola, seeded acreage, western Canada

for more information visit us online online articles High-oleic oil makes market inroads www.farmforum.ca/higholeiccanola China: wild card in canola market www.farmforum.ca/canolainchina additional resources Statistics Canada’s Cereal and Oilseeds Review www.farmforum.ca/oilseedreview Canola Council of Canada’s industry overview www.farmforum.ca/CCCreview Saskatchewan Ministry of Agriculture statistics database www.farmforum.ca/SKagstats Bayer CropScience cereal development announcement www.farmforum.ca/Bayercerealdevelopment

Despite a small drop from last year’s record acreage, canola is in no danger of losing its spot as the primary oilseed processed in Canada. According to the Canadian Oilseed Processors Association, the domestic crush surged to a record 4.28 million tonnes in 2008-09. That’s up three per cent from the previous record of 4.14 million tonnes set in 2007/2008. And more crushing capacity is under construction.

But in the big picture, canola is still a distant second to soybeans, which dominate the edible oil market in North America. “If you look at soybean consumption in the U.S., canola has a long way to go,” says Catherine Folkersen, executive director of SaskCanola.

Even though canola oil remains a relatively small player, however, consumption has risen significantly. This increase in North American market share, to about 10 per cent, has driven producers’ profit upward, and that hasn’t escaped the notice of competitors.

The soybean industry sees the gains we’ve made, says Folkersen.

“If you take 10 per cent of someone’s market, you’re creating concern.” And now specialty, high-oleic canola oils are targeting another segment of the market.

Not surprisingly, the soybean sector hasn’t been resting on its laurels, watching canola eat into its market share. Research into improving the nutrient profile of soybean oil is also forging ahead.

“The industry is working on a big reduction in saturated fatty acids,” says Folkersen. “That’s where the big difference is between soy oil and canola. We believe that’s why the canola industry has made the gains it has.” FF

business

size up your foreign competitors

By Jennifer Barber

Photo Šistock photo.com/duncan1890

Overseas ag tours can teach you a lot. Immersing themselves in foreign farming cultures gives Canadian producers insight into how others do business and market their products >>

Farm Forum.cA | 13

business

Bonnie and Harry Elliot on a hiking trip in the highlands in Lencois Bahia, Brazil.

Liniers Stockyards in Buenos Aires, Argentina.

Farmers are not only competing with neighbours down the road. They’re also facing off against farmers around the globe. And boosting their knowledge of farming practices in other parts of the world through agri-tourism helps Canadians improve their operations.

“When we started our business, agritourism was more of a vacation aimed at farmers,” says Bob Thomas, owner of the ag-based tour company, R.W. Thomas Inc. But, times have changed. “Now they really want to see the business side of farms. They want to see processing facilities and farm shows. They want to learn something new.”

Thomas primarily takes groups of farmers on trips to South America, build14 | Farm Forum | Fall 2009

Tour guide Ulysses Contador, with an aloe vera plant in Elqui Valley, Chile.

Show Rural Coopavel in Cascavel, Brazil is one of the largest farm shows in the world.

On tens of millions of South American acres, soybeans have replaced woodland and cattle pasture. This is a large corporate farm in Misiones, Argentina.

ing on contacts he made during his 35 years of farming. Tours last a minimum of two weeks and include countries such as Brazil, Argentina and Chile, which

Overall we pretty much farm in the same way, and there’s a lot we can learn from each other have strong agricultural bases. He tailors the tours to each group and times them around some of the big farm shows so Canadian producers can see what technology is used in the southern hemisphere.

“It’s partly a vacation but mostly a learning opportunity,” says Thomas.

“They come back with a lot of new ideas for their own farms.” When on a trip, farmers look at production costs in other countries, how these countries market their products and in general where they fit in the global picture, he adds.

Comparison builds confidence The Bradish family, who operate a large vegetable farm in southern Ontario, travel extensively in their search for more information on their global competitors.

They have visited the U.S., Mexico, South America and Europe. Tom Bradish says that his experience has made him feel quite comfortable with his operation’s

Mix business and pleasure Running a dairy and tending 2,500 acres of cropland leaves little time for the Manitoba-based Elliot family to engage in professional development. But international ag-based tours have allowed them to immerse themselves in the agricultural conditions in other parts of the world, and they say it helps them learn more about their own farm.

“We’ve seen beautiful crops and beautiful country,” says Bonnie Elliot, who has participated in ag-tours in New Zealand, Mexico and South America. “We also learn so much by going to cattle auction marts or to feed or fertilizer plants, and we always compare what they are doing well to what works or doesn’t work for us.”

In South America in particular, she says, there is no labour shortage as in Canada. Also, South Americans stay in agriculture for many generations. “Here, we wonder who is going to take over the farm.”

On trips to Mexico, the Elliots spend

Check tax rules before you book Deciding what part of a trip is an eligible tax deduction mostly comes down to common sense. But it helps to understand the Canada Revenue Agency’s position on what’s allowable and what’s not.

Agri-tourism is often a mix of business and pleasure. Once a trip is over, however, Canadian producers have to account (on their annual tax return) for how they spent their time and money.

Business-related travel is an allowable expense for farmers, just as for any business owner. But the Statement of Farming Activities currently does not specify what travel-related expenses should be included.

“Farmers need to be reasonable when determining what part of their trip was actually business-related,” says Merle Good, provincial tax specialist with Alberta Agriculture and Rural Development. “The rule of thumb is to calculate a proportionate amount of time that was actually spent on work-related activities.”

That proportion can be calculated in two ways. The most common is to total up all costs of a trip, determine what percentage of the trip was work-related, then pro-rate that percentage against the total expense. The second way is to account only for the days of work-related activities and tally up all the expenses for those days.

“A trip can be a mix of business and leisure,” he adds, “But the leisure part should not be included in the business expense.” While many people travel with their spouse, spousal expenses can be deducted only if the spouse is a documented partner in the farm business.

He suggests making sure you learn about eligible business expenses before booking a trip. Then you won’t be surprised come tax season. For example, even if a farmer spends a whole day touring farms and related businesses, meals eaten that day are only 50 per cent deductible.

He says farmers often question where they should list business travel on their Statement of Farming Activities. “Most would list agri-tourism in the “other expenses” category. While they don’t have to list their entire itinerary here, they have to give a general description of the trip,” he says.

As with any other expenses, keeping receipts is important in case of an audit. Many agri-tourism operators will provide documentation about the technical aspects of the tour for tax purposes.

While good judgment is important, farmers don’t have to figure it out on their own.

Good says it’s a smart idea to ask a professional accountant what best fits the definition of a business trip. That simplifies the tax preparation process. FF

months touring the country in their fifth wheel, in a caravan with groups of farmers. They become part of the local culture and get a first-hand appreciation of what it takes to have a successful farming business in that country.

“They often have the same issues — they have similar diseases, much of the same equipment and they deal with many of the same companies for crop protection and fertilizer,” she says. “Overall we pretty much farm in the same way, and there’s a lot we can learn from each other.” FF

farmforum.cA

Photo s (left) courtesy R.W. Thomas inc.; (TOP RIGHT) ©iStockphoto.com/richvintage

performance in the global arena.

When he visited Brazil, for example, the country’s terrific growing conditions made it, at first glance, look like a tough competitor. “But I came back appreciating the transportation infrastructure we have here in Canada,” he says. “I live close to a port, the railway and an extensive highway system. (Brazil) may be able to grow crops well but right now it can’t get product where it needs to go.”

In many countries, he adds, government involvement and control over farming also give him pause. “As much as we like to give our government a hard time, we don’t have the problems that many other countries have. In Argentina, for example, if the government decides they need to increase domestic food supplies, prices and exports are capped for some products. The farmers have to just work with it.”

Bradish says building international contacts is another advantage of agritourism. He has one long-standing contact who he speaks with weekly, and they compare notes on crops, weather issues, and markets to see where they both fit in the big picture.

“We’ve seen a lot of great operations but I don’t think there’s any country out there that is going to put Canadian farmers out of business,” adds Bradish.

for more information visit us online online articles Bring the city to your farm www.farmforum.ca/agritourismonfarm Canadian agriculture impresses foreign farmers www.farmforum.ca/agimpresses additional resources R.W. Thomas Inc.: ag-venture to remember www.farmforum.ca/agtours Guide to reporting farming income www.farmforum.ca/farmincomeguide Information on eligible travel expenses www.farmforum.ca/eligibleexpenses Canadian Income Tax Form T2402, Statement of farming activities www.farmforum.ca/activitiesstatement Farm Forum.cA | 15

production

Little is known about stemphylium blight, a widespread disease in lentil crops across Saskatchewan in 2009. It can cause significant leaf damage.

build disease-resistant rotations

By Scott Garvey

Thanks to advances in crop protection technology, farmers now have access to a range of fungicides to keep crops safe from disease. But that doesn’t mean you can just sit back and spray your troubles away.

Anastasia Kubinec, an oilseeds specialist with Manitoba Agriculture, Food and Rural Initiatives (MAFRI), says prevention through proper agronomic practice is still a primary weapon in the battle against crop disease. “One form of protection is avoidance,” she explains.

More importantly, ignoring basic agronomic principles can make disease treatment so difficult and expensive that it may be necessary to abandon a crop entirely.

Conrad Johnson, a producer in Bracken, SK, remembers how the rush to grow 16 | Farm Forum | Fall 2009

Fusarium head blight causes a pinkish discoloration on cereal heads. It is particularly noticeable in green crops.

chickpeas in his area had many producers eliminating rotations in order to cash in on the lucrative crop. “Within three years, that pretty well ruined everything because of disease,” he says. “Chickpeas have almost disappeared from our area.”

Fungicides were available to treat the disease outbreaks, but couldn’t handle all the consequences of poor rotations or, in some cases, no rotations. Economics dictated a return to more traditional crop management practices generally and disease prevention in particular.

But just alternating between a couple of crops doesn’t usually make an effective rotation plan. “It’s much more complex,” says Kubinec. Some diseases affect more than one crop, so planning a rotation that effectively breaks the disease cycle requires a little homework.

And rotation is only one aspect of a good agronomic plan. Kubinec recommends a three-pronged approach. “Resistant traits (in seed varieties), use of fungicides, and crop rotation will be the best plan in the long run,” she says.

Photos (left) courtesy Saskatchewan Ministry of Agriculture; (top RIGHT) ©iStockphoto.com/imaginegolf

You can control what you’re doing, but you can’t control what your neighbour does.

Similar crops grown in an area mean some level of disease threat is almost always present some cases,” says Scott Henry, Bayer CropScience’s research and development manager for seed treatments and foliar fungicides. “It’s another management practice available to growers.” That early protection may be most beneficial for canola. “Canola is not very competitive when it first germinates and begins to grow.”

Johnson sees seed treatments as a critical part of disease management on his farm. “We treat every bushel,” he says. “I think it’s worth it. This year on the mustards we went without treating and we’ve been fighting flea beetles all year. I won’t cut that corner again.”

Selecting the right crop variety can also minimize disease risk. Several varieties, particularly in wheat, offer resistance features. Selection should be based on the typical weather and disease problems common to your region. But resistance is a relative term, Kubinec cautions.

“No variety is 100 per cent resistant,” she says.

Another option is staggered seed-

Don’t skimp on field scouting Deciding what and when to spray without checking a crop’s condition is a little like going grocery shopping without a list: you might end up with what you need, but chances are slim. That’s where proper field scouting comes in.

“If you’re not out there (in fields), you don’t know what’s going on,” says Wayne Bacon, a producer from Kinistino, SK. “We try to make a practice of going out in our fields quite often.”

Faye Dokken, a plant disease specialist with the Saskatchewan Ministry of Agriculture, agrees that scouting should be an on-going process. “It should be done throughout the year.”

Fall is the time to start scouting for next year’s crop. “Be aware of what your crops look like when you’re combining,” she says. Problems this year could signal what’s looming for next year.

Dokken recommends getting hold of a copy of the book Diseases of Field Crops in Canada. It’s available through the University of Saskatchewan book store and other sources. That and a magnifying glass will help you detect and identify disease symptoms early.

In spring, begin scouting as soon as crops emerge. Watch for uneven emergence or yellow patches that can indicate root rot. Pull up a few plants and inspect their roots. And be sure to make close inspections just before flowering in oilseeds, and flag leaf emergence in cereals. That’s the perfect time to look for leaf diseases.

Look at enough of the crop to make an accurate assessment. “Usually, we recommend a ‘W’ shaped pattern,” says Dokken. Walking that kind of path through a field ensures you see a representative sample of the stand. FF ing dates, which avoid having all similar crops in bloom (the critical time for disease development) at the same time.

Seeding cereals, then oilseeds then cereals again, for example, would provide some variation in crop maturity.

Because producers typically like to stick with seeding one type of crop until they’re finished with it, says de Rocquigny, using varieties with different maturities may be an alternative way to stagger development stages in different fields. But, she adds, that still may not guarantee flowering on different days.

Even with the best practices, most crops are likely to suffer some level of disease, and fungicide application may be necessary. But the only way to know for sure is to keep a close eye on crops with

continuous field scouting.

When a grower does decide to make a fungicide application, Henry recommends careful selection of the best sprayer nozzle for the job. “You’ve got to get that product to its target,” he says. FF farmforum.cA

Pam de Rocquigny, a cereals specialist with MAFRI, also emphasizes the value of integrated disease management. “It’s always good to use multiple strategies,” she says. The problem in relying on rotations alone is that disease spores can blow in from neighbouring fields and infect your crop.

“You can control what you’re doing, but you can’t control what your neighbour does,” she says. Similar crops grown in an area mean some level of disease threat is almost always present.

De Rocquigny recommends starting with good-quality certified seed and getting it in the ground early to reduce the risk of leaf and stem rust. Seed treatments also give crops a head start against various diseases.

Seed treatment “can protect that young plant for days, weeks or even months in

for more information visit us online online articles Fusarium head blight moves west www.farmforum.ca/fusarium Stemphylium blight takes hold www.farmforum.ca/stemphylium additional resources Bayer CropScience Resources Guides: Nozzle Selection Video www.farmforum.ca/nozzleselectionvideo Managing herbicide resistance www.farmforum.ca/mixitup Diseases of Field Crops in Canada, 3rd edition www.farmforum.ca/cropdiseasebook Farm Forum.cA | 17

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

18 Always | Farm Forum | Fall 2009

InVigorResults.ca Farm Forum.cA | 19 09/09-12004B_r

Technology

look for portability and speed in office technology

By Joy Gregory

New hardware and software should make your life easier and your farm more profitable. If not, why buy?

Sandra and Nick vanRootselaar could run their 1,000-acre farm near Spirit River, AB, without a desktop computer, two laptops, two cell phones and a high-speed Internet connection. But that strikes Sandra as silly since every piece of high-tech office equipment they use on their farm pays for itself.

The real trick to making good use of the latest-and-greatest in office technology isn’t deciding whether you should have it, but knowing when it’s time to upgrade, says Ted Nibourg, a business management specialist with Alberta Agriculture and Rural Development’s Agriculture Information Centre.

When it comes to hardware, for example, he says the biggest advantage of laptop technology is portability. “The 20 | Farm Forum | Fall 2009

jury’s still out on whether these machines can really be taken out into the field. But I think a lot of farmers prefer the laptops and notepads because they can work from different rooms in the house. If they have wireless connectivity in their homes, they can be on the Internet without having to work in a particular room.”

Nibourg’s chief advice on business and accounting software is downright old fashioned. “To get the most out of software, you need to really know what you’re doing manually before you try putting the latest technology to work in your home office.” A new spreadsheet is great, he adds, but if you can’t read it and analyze the numbers for cash-flow projections and costs, it’s not going to do anything for you.

The future looks small Besides laptops, hand-held, text-capable devices are the biggest thing in leadingedge office technology. “Because of the increased coverage for cell phones and the fact these devices are more durable than when they first hit the market, text-capable cell phones are really popular,” says Nibourg. “Farmers are using their BlackBerry to check commodity prices from their combines, or compare cattle prices from their seats at a live auction. They can find out what’s going on in the futures market, and compare that with what others are bidding for cattle right in front of them.”

So how do you decide what to buy?

“The majority of farmers now are 50plus and they’re going to their kids for advice about what to buy and how to use

money, that’s a half-day wasted if what they need isn’t there, notes Sandra.

High-tech home study Looking ahead, high-speed connections mean a lot more western Canadian farmers will soon use their computers to participate in interactive “webinars” on everything from grain marketing to cattle nutrition, predicts Nibourg, whose office has already delivered a few web-based educational sessions across Alberta. “From an information-technology perspective, this changes the way we disseminate and get information. Because it requires certain video and audio capabilities, you may need to drive into town to participate.

Still, this technology presents some tremendous opportunities for learning.” FF farmforum.cA

His bottom line: “If an application it. They’re also going to vendors for that kind of information. This can be tricky works for you, whatever the technolbecause vendors will try to sell them a ogy, do you necessarily have to upgrade? new or different application.”

Probably not.”

Listen to the pitch, Nibourg suggests, But some upgrades are worth every then walk away, think about whether you penny. For example, there’s no debate really need it, and talk to other produc- about high-speed Internet, says Sandra, ers. “Technology is often sold as a pana- who jumped at the chance to get highcea for on-farm probspeed access as soon lems, when in fact it as it was offered in the may actually add to couple’s area some 70 The real trick to making those problems.” km north of Grande good use of the latestHere, Nibourg sees Prairie, AB. While Nick parallels with preciand-greatest office doesn’t take his laptop sion farming technoltechnology isn’t deciding to the field yet, he does ogy. “It’s been touted use the high-speed Inwhether you should have ternet connection to as a savior but if you’re not managing check grain prices, ag it, but knowing when it’s your fields individualnews and crop input time to upgrade ly, you’re not going to specifications. A few get any real advantage years ago, the Internet from the investment. It may show you helped him find a Grande Prairie compawhere you’ve got a problem with fertility, ny that could laser lathe a tractor-engine but if you don’t ground truth that infor- part he’d been told he’d have to import mation with what you see happening in from overseas. that field, you may spend money on fertilThey also use the Internet to make sure izer for a problem that’s really caused by particular parts or inputs are available your low areas being too wet and your before they drive to Grande Prairie. It’s high areas too dry.” only 45 minutes way — but when time is

for more information visit us online online articles Set up your cab for surround sound www.farmforum.ca/incabtech Internet: speed matters! www.farmforum.ca/highspeedinternet additional resources PrairieMobile Communications www.farmforum.ca/prairiemobile Reviews and comparisons of cell phones and plans www.farmforum.ca/cellphonereviews

YouR contract’s calling

ILLUSTRATION (RIGHT) GENEVIEVE SIMMS; photo (right) ©istock photo.com/foment

Make your cell phone plan work for you When searching for the right cell phone plan, farmers look for good coverage and sound quality at a good price. And, like many cell phone customers, farmers may be hesitant about signing multiyear contracts because they think it may tie them to old technology, says Tim Armstrong of Prairie Mobile Communications (PMC), Saskatchewan’s largest cell phone provider. But, multi-year contracts have some benefits farmers should consider.

People sign multi-year contracts because they save money over the long term. Economics aside, some multi-year contracts allow users to make changes to their plans at any time — and that can save money if your air time needs change with the seasons. “A lot of our farm clients make changes before and after harvest so they can use more air time when harvest is on,” says Armstrong, who’s based in Moose Jaw, SK. He recommends talking to suppliers who know the area where the cell phone is expected to work, “since coverage is still a huge issue with cell phones in rural areas.”

Sound quality also varies from phone to phone, so make sure your vendor knows you could be using the phone inside noisy farm machines. “The more information you can give us, the more we can help you pick the right phone.”

Other points Armstrong suggests checking out: • Long-distance plans. Who are you calling? If you need more long-distance air at peak harvest and spring seasons, ask about temporary plan changes.

• Hands-free technology. With municipal and provincial governments talking about banning hand-held phones when driving, this technology is taking off. “It’s a safety thing, too.

You can clip these devices to your visor or wear an ear piece and you don’t have to worry about dialing numbers or holding a phone to your ear while you drive.”

• Durability. Be honest about where you’ll use the phone and where it’ll be stored. FF

Farm Forum.cA | 21

fa r m l i f e

customer satisfaction guaranteed

By Jennifer Barber

Input from buyers points these Outstanding Young Farmers down the path to innovative growth

OYF Atlantic region winners, Greg and Tania MacKenzie pictured here with their children from left to right: Austin (12), Gracie (4) and Haley (11).

What do a bison rancher, a dairy farmer and a vegetable grower have in common? In the case of this year’s regional Outstanding Young Farmers’ Program (OYF) winners, they all have demonstrated a readiness to change.

Their markets vary by product, but all are focused on supplying customers with what they need, and with making smart growth decisions. In the process they’ve made dramatic changes in their operations or business practices.

“These farmers are fantastic examples of a successful business model for agriculture,” says Brian Newcombe, first vice president of OYF Canada. “They’ve found innovative ways to extend their businesses, to diversify and take advantage of unique new marketing opportunities.”

22 | Farm Forum | Fall 2009

To be eligible for the OYF award, farmers must be between 19 and 39 years of age and earn at least two thirds of their annual income from the farm. They also need to demonstrate progress throughout their careers. Judges look at conservation practices, management practices, production history, financial issues and contributions to the community. Regional competitions are held across the country, with a national winner chosen from that group.

Changing species Jason and Christina Pyke of Wolfe Island were presented with the Ontario regional award earlier this year. They say part of their success has been in finding the balance between a busy family life and the daily demands of their bison and field

crop operation. Both grew up on dairy farms, but early in their careers decided to leave the dairy industry completely and move into bison ranching.

“We decided to jump in with both feet because if you’re going to do something you have to be committed to it,” says Christina. “Some people are resistant to change, but we look forward to it. We decided the potential reward outweighed the risk of making the shift to bison.”

Part of their motivation was to stay away from the time demands of a dairy operation. While a bison herd needs more care in the spring and summer, the hardy animals don’t require as much attention in the winter months.

Over the past 13 years they’ve increased their herd from 30 head to more

OYF Ontario region winners Jason and Christina Pyke with their son Jack at their market stall at the Ottawa Farmers’ Market.

Changing location With one of the largest dairies in the province, Saskatchewan region winners Art and Elaine Pruim are no strangers to change. They run Matvale Holsteins of Plum Blossom Farms Ltd. in Osler, SK. They made a big change when they left Art’s third-generation family dairy farm in British Columbia and decided to build a new operation from scratch. They now have a herd of 850 cattle of which 400 are milk cows. On top of that they grow corn, barley, alfalfa and oats for silage.

“This is a modern dairy with genetically superior cattle,” says Elaine. “Our goal is for a herd that has the ability to produce milk in a cost effective manner.

We can’t just have a strong herd; it has to produce the milk for our customers.”

They continue to make changes and expand their operation. They are currently increasing the size of their dairy to create enough storage especially in the winter months when weather can wreak havoc on their carriers. They have also looked overseas to help solve their labour issues

and recently hired four workers from the PhilOYF Saskatchewan region winners Art and Elaine Pruim with their children ippines. from left to right: James (10), Travis (6), Nicole (8), Brad (12) and John (14).

The Pruims are well aware of the public focus on farm environmental practices. time is very important in our industry.”

They spread manure as fertilizer on They have expanded the business sigcropland. And they continue to look for nificantly since taking it over in 2003. unique ways to diversify their business They’ve joined some of their warehousand get their product to market. ing so they don’t have to expose cabbage to the varying weather conditions on the Changing business island. They’ve also added space to those Greg and Tania MacKenzie are owners warehouses and upgraded the coolers. and operators of MacKenzie Produce in “We need to be able to supply our Stratford, PEI. The winners in the Atlan- customers with local produce year round tic region grow cole crops such as cab- and by sticking with our growth plan bage, broccoli, turnip we’ve been able to do and cauliflower. They that,” she says. “We They’ve found innovative provide cabbage year have also added a round to a major food pumpkin patch and an ways to extend their products company, system-based businesses, to diversify and honour supplying one million farm stand on our pounds yearly for coletake advantage of unique farmyard.” slaw production. This In addition to these marketing opportunities has meant expanding three families, the cabbage area from 35 other OYF regional acres in 2003 to 75 acres in 2009. Five winners are Ian and Jennifer Woike years ago they started a delivery service of Duncan, BC (BC & Yukon region); into Charlottetown and now supply all the Geoff Hoar of Innisfail, AB (Alberta & Chinese food restaurants in the area.

NWT region); Monia Grenier and Dany But vegetables were not always part Mayrand of Wotton, QC (Quebec region) of their farming future. Greg grew up and Grant and Colleen Dyck of Niveron a beef farm and, through a part-time ville, MB (Manitoba region.) job with a grower, decided he wanted to The national winners will be anchange his field of expertise. He eventu- nounced in Ottawa at the OYF annual naally bought the cropping business and tional event from December 1-6, 2009. FF warehousing operation from the person he worked for. for more information visit us online “We have taken the business and made additional resources it more organized, and we’ve just completCanada’s Outstanding Young Farmers’ Program www.farmforum.ca/oyfprogram ed our expansion,” says Tania. “We used Pykeview Meadows: Everything Bison to rent space and borrow equipment and www.farmforum.ca/pykeviewmeadows now we have everything we need, which Grant and Collen Dyck’s blog saves a lot of time. And as farmers know, www.farmforum.ca/blog farmforum.cA

Photos (opposite) courtesy the MacKenzie family, (top left) courtesy the Pyke family, (top right) courtesy the Pruim family

than 150. They had to grow the market in eastern Ontario almost from scratch and they now sell into Kingston and Ottawa, supplying health-food stores, meat shops and restaurants. With the help of family, they also grow soybeans, wheat and corn.

“We got into bison because we wanted to do something different, and it’s been successful for us,” says Christina. “We used to have a few requests for animals each year and now we butcher two animals a week.”

The two always look at different ways to grow their operation. This year they leased land to a wind energy developer that erected four wind turbines, and they built a store on the property.

Farm Forum.cA | 23

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

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