Farmforum winter2010

farm forum is online

INSIDE: Grain bins go high-volume

p. 5 Look beyond the farm gate for inspiration

FarmFORUM www.farmforum.cA

Bayer CropScience supporting Canadian farm families WINTER 2010 | $5.00

seed treatment gives cereals a head start

PLUS:

Geneticists crack the canola genome >> Technology: Customize your own fringe benefits package >> Business: Velocity m3 a triple threat to weeds >> Production: >> Farm Life: “Green� and growth go hand in hand

I know InVigor® canola hybrids are number one in yield. I feel it at harvest. I didn’t need the Prairie Canola Variety Trials (PCVT*) and local Demonstration Strip Trials (DST) to prove it – but it’s reassuring that everyone else experiences it too.

It doesn’t matter what you plant beside it, InVigor out-yields the competition. For further information on these trials visit InVigorResults.ca or canola-council.org/pcvt.aspx.

Nothing outperforms.

InVigorResults.ca

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative. *PCVT are weed free replicated trials coordinated by the Canola Council of Canada and measure the yield capabilities of all canola products entered. Since it’s inception in 2003, InVigor hybrids have always been number one in the PCVT. Always read and follow label directions. InVigor® is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

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FarmFORUM

volume 24 | issue 1 | winter 2010

contents >> PRINT TECHNOLOGY

BUSINESS

PRODUCTION

FARM LIFE

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

6

Geneticists crack the canola genome Canola breeding is about to become simpler, faster and more effective thanks to Bayer CropScience

14

COVER STORY

10

Customize your own fringe benefits package

Seed treatment gives cereals a head start

Ways to access health and dental coverage and more

Good reasons for treating seed

22

“Green” and growth go hand in hand See how the inaugural OYF program winners are doing now

4 Editor’s note: online survey results are in 5 Look beyond the farm gate for inspiration: get outside the box to think outside the box 16 Velocity m3 a triple threat against weeds in wheat: new tool to fight weeds 20 Grain bins go high-volume: think big when investing in grain storage

contents >> WEB

FarmFORUM.ca

Contributors Gerald Pilger, Joy Gregory, Angela Lovell, Cindy Bablitz, Jennifer Barber, and Genesis Studio 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 2010 Website www.farmforum.ca Return undeliverable copies to: Bayer Crop Science Suite 200 160 Quarry Park Blvd SE Calgary, AB, T2C 3G3 On the cover Michael VanPetten, a commercial grain producer from Rosalind, AB, treats all his seed each year as a low cost way to protect his crop from disease.

Read all about it!

Canola traits growers want

How herbicides work

Self-help books can be an economical way to improve your business

Producers reveal their wish lists

An important piece of the weed management puzzle

www.farmforum.ca/bizbooks

www.farmforum.ca/canolatraits

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

s h o r t ta k e s

TRaffic Report Sometimes people wonder why we repeat stories on the website that appear in the magazine. That’s because the print stories are excellent and our web readers in other parts of the world need to read them too. Farmforum.ca generates traffic from virtually every region in the world that is involved in production agriculture.

We have traffic from the U.S., all regions of Europe, all regions of Asia, Central and South America, most regions of Africa, New Zealand and Australia. What you find interesting is also of interest to farmers in other areas of the world.

Almost half of the traffic for farmforum.ca comes via search engines looking for key words such as sprayers or grain carts or grain trucks; common words to farming no matter where you are. Is it your competitors keeping an eye on you? Maybe just other farmers looking for better ways to do things? Whatever the case, they, like you, will find lots of information on farmforum.ca. FF

4 | Farm Forum | winter 2010

Editor’s Note survey says…

Thank you to all who participated in the Farm Forum online survey, sent out in September. By the results, it looks like we are succeeding at our goal of providing you with a magazine that not only is enjoyable to read but contains information you find useful in the operation of your farm.

The survey revealed that 76 per cent of respondents read all or most of an issue of Farm Forum and 86 per cent of respondents spent half and hour or more looking through the magazine.

We were very happy to discover that about one quarter of respondents found the information in Farm Forum to be “very useful” and another 71 per cent said that the information was “somewhat useful.”

When we asked about our website, farmforum.ca, the results were a bit different. Although over 3/4 of the respondents who visited the website found the information “somewhat interesting”, only 34 per cent of respondents actually visited the Farm Forum website and only 23 per cent of respondents knew that there were additional stories published on farmforum.ca that supported the magazine.

As a result, one of our goals this year is to raise awareness of farmforum.ca and make it more enjoyable to visit through more comprehensive coverage of the subject matter presented in the magazine. We’ll also update the website on a regular basis so there is always something new and interesting to read.

If temperatures remain this chilly, you’ll have plenty of time to read this issue of Farm Forum. Our cover story talks about the advantages of seed treatment and how this strategy can boost profit margins. Some of the other stories you’ll find in this issue include how to customize your own fringe benefits package, tips on grain handling and storage and a look back at two of the first winners of the Outstanding Young Farmers’ award. FF

business

Look beyond the farm gate for inspiration

m a r k eting>>m in u te

By Joy Gregory

corporate management gurus like talking about why business success depends on a willingness to think (and work) outside the proverbial box. Canadian ag-management coach Gary Pike pushes that same philosophy to his clients, not because it’s trendy but because it works.

“It’s not that difficult to find a predetermined solution to a business problem,” says Pike. “You can look at this approach as a curse or a blessing. We do things a certain way because we think it works. But that keeps us from looking at the other opportunities and solutions out there.”

For example, a lot of non-farm businesses handle inter-generational transfer or family-management dynamics considerably different than farm families, says Pike. In addition to seeking help on the raw business side of an issue, which farmers may well do, entrepreneurs beyond the farm gate are more inclined to seek advice in the writings of someone like Stephen R. Covey, an acclaimed self-help author whose books include, The 7 Habits of Highly Effective People.

Whereas the conventional farm business approach aims to apply an external solution, the self-help strategy concedes valuable progress can come from internal changes in leadership habits and style. Covey promotes an ongoing commitment to applying fresh solutions to older problems.

His work, which zeroes in on specific habits for success (box right), opens important doors to different kinds of discussion about business issues, notes Pike. Being proactive, for example, implies taking action before a problem occurs. Applied to a farm business, it means putting an inter-generational transfer plan in place long before it’s needed. It also means having a plan to market crops before they’re planted or harvested. And it might mean setting up, for yourself and your farming children, a prenuptial agreement that

protects a farm’s ability to make a profit in the future.

A primary benefit to thinking these strategies through, even before you seek professional help to carry them out, is that “every farm situation is different and there is no magic. You really do need to spend time thinking about what works for you,” says Pike.

The Habits of Highly Effective People

1 2 3 4 5 6 7

Be proactive principles of personal vision Begin with the end in mind principles of personal leadership Put first things first principles of personal management Think win/win principles of interpersonal leadership Seek first to understand, then to be understood principles of empathic communication Synergize principles of creative cooperation Sharpen the saw principles of balanced self-renewal

What does work for you?

Jeff Nielsen took that forward-thinking and farm-focused approach when he designed a farm-transfer plan for his 1,350 acres near Olds this past year. If something happens to Nielsen, his transfer plan features a five-year buffer, giving his cousin’s three boys time to decide if they want to buy Nielsen’s property.

(This is in step with the win/win habit Covey promotes.)

Even though he’s not a big proponent of self-help business books, Nielsen’s approach to his farm operation includes putting new ideas to work. He uses a high-speed Internet connection to check

a couple of ag sites every morning, letting current events and information guide future marketing choices. A past president of the Western Barley Growers and currently a Canadian Wheat Board director, Nielsen also stays on top of agri-trade news. (That interest in the bigger picture fits with Covey’s sixth habit, synergize, which stresses the importance of good information in building a whole that’s greater than the sum of its parts.)

One province over, 26-year-old Lynden Butler admits he’s also too busy to spend much time reading self-help books. But he does look for answers in new places. For him, a lot of those new places involve getting together and exchanging ideas with other young farmers. To facilitate those meetings, Butler helped set up an organization called Saskatchewan Young Ag Entrepreneurs. He thinks he has a lot to learn from the education and optimism of those in the organization. “Being a young farmer myself, I can tell you we are pretty few and far between. But we have a lot to teach each other. One minute you’re asking about the kind of combine they run and half an hour later you’re talking about marketing. These guys aren’t doing things the way their parents did and I find that very valuable,” says Butler.

It’s okay that individual farmers apply similar strategies in remarkably different ways, says Pike. “We all need information that’s useful to our own operations.”

Still, he cautions against complacency, favouring instead an ongoing and deliberate search for ways to make your business better. FF farmforum.cA

Photo ©istock photo.com/ianmcdonnell

To think outside the box, first get outside the box

for more information visit us online online articles Learn as you grow www.farmforum.ca/learnasyougrow Read all about it! www.farmforum.ca/bizbooks additional resources Pike Management Group www.farmforum.ca/agcoach Dr. Stephen R. Covey www.farmforum.ca/stephencovey Farm Forum.cA | 5

Technology

Geneticists crack the canola genome

Canola breeding is about to become simpler, faster and more effective thanks to developments by Bayer CropScience

by Angela Lovell

Bayer CropScience has sequenced the entire genome of Brassica napus, the rapeseed/canola species that makes up about 95 per cent of canola acreage across Canada. “Having the canola genome sequence will open a completely new world for us,” says Bart Lambert, head of Bayer’s oilseed research program. “This will

A brief history of canola research

6 | Farm Forum | winter 2010

eventually lead to improvements in current traits and discovery of new traits.”

“This is a very exciting and important development that will have positive implications for the canola industry and for producers down the road,” says Wilf Keller, president of Genome Prairie, a notfor-profit organization supporting and

 Canola was developed to remove nutritionally undesirable erucic acid and glucosinolates from rapeseed, to make the oilseed safer and more palatable for humans and animals. The level of saturated fat was also lowered, making it a healthier choice as an edible oil.

managing genomics research in Saskatchewan and Manitoba.

“Genome” is the term used to describe the entire package of genetic information present within the cells of living organisms such as plant and animal species. The genome is built from DNA, a complex molecule, “and DNA carries the genetic codes

 Canola was developed from rapeseed through traditional plant breeding in the early 1970s by Dr. Keith Downey, a research scientist with Agriculture Canada and Prof.

Baldur Stefansson of the University of Manitoba.

1970s

 Canada continues to be the global centre for spring canola research programs by universities, federal and provincial research organizations and private companies.

Photos courtesy bayer cropscience

farmforum.cA

explains. “We know that (genes) necessary for a canola in canola the same genes plant, for example, to grow from are present, so now that a seed, to flower, to mature, to we have the genome seproduce seed and to start all quence we can find them over again when you replant that and characterize them seed,” explains Keller. much quicker and in the “Sequencing” refers to the crop itself, which eventuidentification, by location withally will lead to more rain a genetic package, of all the tional, biotech-based apcomponent genes in that packproaches for controlling age. This major breakthrough diseases.” in the case of canola is a first But not only growstep in speeding up the research ers stand to benefit and development process, says from the unlocking Lambert. “Having this genome of canola’s genetic sequence of canola will shorten secrets. Bayer’s disthe timelines for development coveries could help of GM as well as non-GM traits Bayer’s discoveries could help build upon canola’s in our portfolio,” he explains. build upon canola’s image as a image as a versatile “Rather than having to use a lonand healthy edible ger process, which takes about versatile and healthy edible oil oil by improving on six months and a lot of effort to the stability of oil isolate canola genes in the confor frying and makBart Lambert ventional way, we can now isolate all the 60,000 genes is not yet known,” says ing it healthier by gene copies right away via computer. And Keller. lowering saturates even further. we will have them in one week rather than “It’s kind of like getting a city map,” “We have been leaders in canola resix months.” says Murray Hartman, an oilseed specialsearch and development and by sequencThat means farmers can expect new ist with Alberta Agriculture, “and having the genome we’ve developed the right varieties of canola to be available at least ing every square foot of all the streets platforms to continue delivering valuable a year earlier than would otherwise have sequenced in relation to each other. That traits to both growers and the downstream been the case. That could result in research doesn’t tell you what’s in each of those industry,” says Lambert. FF cost savings being passed on as cheaper square feet.” seed. “Faster means a benefit for growNext step for Bayer researchers is to for more information visit us online ers,” says Lambert. “We hope to bring understand which genes do what and how online articles innovation and more profitable crops to they can help develop varieties that offer Canola traits growers want farmers sooner.” advantages for canola growers. www.farmforum.ca/canolatraits Canola genome explained But the hard work isn’t over yet. Al“This means a producer will be able www.farmforum.ca/genomeexplained though sequencing the genome basically to grow a crop with traits that allow him additional resources means that all genes present in canola have to improve the bottom line, perhaps from Genome Canada been identified and mapped, it doesn’t higher yield or disease resistance, and so www.farmforum.ca/genomecanada mean scientists know the function of all come out ahead of the game,” says Keller.

Genome Prairie www.farmforum.ca/genomeprairie those genes.

Disease resistance is a research priorCanadian Museum of Nature’s intro to genomes “They know how the genes are aligned ity, says Lambert. “So far, for controlling and genetics right through that whole genome. In other diseases, we’ve had to rely on genes that www.farmforum.ca/genomeintro words the sequence for all of these 60,000 were discovered in Arabidopsis (sidebar) National Science Foundation Arabidopsis sequencing genes is known, but the function for all but canola is much more complex,” he www.farmforum.ca/arabidopsissequencing

 The first-ever complete plant genome sequence was announced in December 2000, when an international team revealed the DNA secrets of Arabidopsis thaliana. A member of the mustard (Brassicaceae) family, this plant became the model for genetic research in crops.

 All genetic improvements in canola to date have been based on the genome sequence of arabidopsis. “Arabidopsis has been used by academia and also by the industry as a source of genes for canola improvements, but the fact is that this model species does not represent and reflect the trait complexity of canola,” says Bart Lambert, head of Bayer CropScience’s oilseed research team.

 Sequencing of the complete canola genome was announced by Bayer CropScience in October 2009.

2009

 Future canola varieties will be developed using actual canola genes, making the research quicker, more relevant and in the long run of greater value to growers. “Now we can do discovery right away in the canola crop itself,” says Lambert. FF

Farm Forum.cA | 7

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You now have greater flexibility in how you use Liberty; higher labelled rates or a 2-Pass option, you decide.

With a new lower price, Liberty unlocks the highest yield potential of your InVigor hybrid canola. Plus it’s the only Group 10, making it an effective resistance management tool.

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

8 | Farm Forum | winter 2010

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

Break free. New lower price.

Farm Forum.cA | 9

09/09-12314-01A

Cov e r S to ry

Seed treatment gives cereals a head start

By Gerald Pilger

Cliff Harbon, a seed grower at Rivercourse, AB, treats all his seed each year to prevent diseases such as smut. He also says more growers in the area are treating seed to try to prevent fusarium from moving into Alberta.

Arthur Peters, a seed grower at Boissevain, MB, sees “quite a bit more seed treating done if the spring is cold and wet. Later in the spring, when soils are warmer, less treated seed is planted.”

Regardless of the weather, Peters treats 95 per cent of the seed he plants because he thinks it’s good insurance.

John Pauls, a seed grower at Morris, MB, also treats most of his own seed because he says it improves germination and plant emergence.

Michael VanPetten, a commercial grain producer at Rosalind, AB, treats 10 | Farm Forum | winter 2010

all his seed each year as a low-cost way to protect his crop from disease. “I don’t find seed treatment to be expensive,” he says. “The costs are covered by about a bushel of production. I get only one chance to control seedling diseases and if I do not treat my seed I have no other options to prevent losses from seedling diseases and poor plant stands.”

Even though all these growers apply seed treatments every year, they have difficulty putting precise numbers on their costs and returns.

Not only does the cost of the seed treatment product have to be considered, Peters explains, but also real costs associated with storage and handling of treated seed. Harbin says treating seed takes extra work and time during the busy spring period and this is another real cost that

Genesis studio

Growers cite many reasons for treating seed.

Value for money, however, rarely gets mentioned

Michael VanPetten, shown here and on the following page, works at the County of Camrose Seed Cleaning plant, where just over 10 per cent of the total bushels of cereal cleaned in 2008 were also treated with fungicides.

Farm Forum.cA | 11

Cov e r S to ry

town, PEI, says that in work he did 25 years ago, seed treatments produced barley yield increases of 10 to 40 per cent in PEI’s damp growing conditions.

The value of cereal seed treatments was also proven in 24 independent trials across Alberta, Montana, Manitoba, and North Dakota that compared yields from treated and untreated seed. In these tests, three different seed treatment products provided yield increases for both wheat and barley over the untreated checks.

Raxil, for example, increased yields by 16.6 bu/ac in barley and 3.1 bu/ac in wheat.

It is yield responses like these that support industry claims of a four or five to one return on investment being achieved with seed treatment. It is also a reason why seed treatment is now the fastest growing segment of the crop protection industry. In Canada, 46.8 per cent of cereal growers used treated seed in 2008. In 2009, that figure jumped to 49 per cent.

In acreage terms, the increase was from 48.4 per cent to 49.2 per cent. Equivalent numbers for wheat only were 43.6 per cent of growers in 2008 to 45.2 per cent in 2009, and from 47.1 per cent of I don’t know if I get a return from seed acres to 48.2 per cent. Clearly, cereal seed treating every year but I do know in treatment is catching on.

In corn and soybean country, its value years when disease is a problem, seed is well accepted. Steve Denys, vice presitreatment pays back enormously dent, sales and marketing for Pride Seeds, says soybean growers in Ontario are rapidly adopting the practice of treating their seed with a fungicide. “New seed treatment products combined with highalso needs to be taken into account. Adds ling diseases, however, can simply leave er value seed, earlier seeding and better VanPetten: “I don’t know if I get a return a crop looking unthrifty. Visible symp- scouting for pests has growers of all crops from seed treating every year but I do toms are confusing or absent. A grower treating more seed. They are finding both know in years when disease is a problem, might then conclude that it just wasn’t a yield and quality advantages can be very good year for any number of specu- gained by using seed treatment,” he says. seed treatment pays back enormously.”

Like others who routinely treat cereal lative reasons. But in fact he’s lost two, Denys adds that seed treatment in seed, these growers to some extent have three, five or maybe corn is now common to take the benefits on faith. Although more bushels per practice in his prov>> reported in a 2006 informa Pauls says he has seen good, third-party acre to diseases ince, largely due to healthcare news release: testing showing the benefits and returns that might have improved yields. He Global seed treatment of applying specific herbicides he is not been stopped by a points to data showaware of similar testing or on-farm dem- seed treatment. Dr. growth from US$800 ing a net return on Kelly Turkington, onstrations of seed treatments. investment of $20.30 million in 2000 to And unlike herbicides, seed treat- at Agriculture and per acre pocketed by US$1.4 billion in 2005 ment protects a crop in ways that can be Agri-Food Canada growers who treated hard to spot. The impact of a wild oat or (AAFC) in Latheir corn seed with wild mustard outbreak in a wheat field combe, AB, notes that “seed treatments Poncho 250. is evident to everyone. Yield loss can be do stand out when they suppress seed In a 2006 news release, Informa dramatic. An appropriate herbicide treat- borne disease such as smuts, bunts, Healthcare, an organization that comment kills the weeds in similarly dramatic and fusarium.” piles and publishes information for life At the other end of the country, Dr. science industries, reported global seed fashion. The contrast between sprayed and unsprayed strips is obvious. Seed- Richard Martin, at AAFC in Charlotte- treatment market growth from US$800 12 | Farm Forum | winter 2010

million in 2000 to US$1.4 billion in 2005. This trend is expected to continue as more zero tillage and earlier seeding increase germination and disease risks.

As growers opt for higher value seeds and crops, they want to maximize potential returns by protecting and enhancing that seed through seed treatment. Most importantly, because new improved seed treatments control more pests and are easier to apply (Raxil MD, for example), more growers are jumping on the seed treatment bandwagon.

To meet this growing demand, the crop protection industry will be introducing a number of new seed treatments in 2010 and every major agricultural pesti-

cide manufacturer has a pipeline of new products currently under test.

Industry is also launching a host of seed-applied micronutrient products.

Seed application of micronutrients reduces the rates required and feeds just the crop and not the weeds. In the future, growers will likely be applying multiple products to seed not only for disease and insect control but to also stimulate growth and promote crop vigor.

This is all good news for growers but VanPetten cautions that for any type of seed treatment to be economically effective, it must be applied accurately, evenly and at the proper rate. Besides treating his own seed, VanPetten works at the County

farmforum.cA

Treating seed (here and below) with the proper equipment ensures full coverage of the seed.

of Camrose Seed Cleaning plant where 74,000 bushels of the 670,000 bushels of cereals cleaned in 2008 were also treated with fungicides. This number is in line with the Alberta provincial average for treating at seed cleaning plants. Roughly 10 per cent of the cereal seed cleaned at cooperative seed cleaning plants across the province was treated last year. “Having your seed treated at a seed cleaning plant is easy and you are assured it’s been done right,” says VanPetten.

Roughly another 30 per cent of the cereal seed sown on the prairies is treated on-farm, by commercial treater, or by seed retailers. But that means 50 to 60 per cent of prairie cereals go into the ground untreated. Those crops remain exposed to heightened disease risk and loss of significant potential yield. FF for more information visit us online online articles Growers reap benefits of seed treatment www.farmforum.ca/treatmentbenefits On-farm seed treatment provides flexibility www.farmforum.ca/onfarmtreatment additional resources Graham Seed Treating Systems www.farmforum.ca/grahamseedtreating Seed treatments well worth the investment www.farmforum.ca/treatmentinvestment Seed treating info from Kansas State University www.farmforum.ca/KSUseedtreatinginfo

Photos (top left & top right): genesis studio; (bottom right) courtesy bayer cropscience

Choose a seed treater that’s easy to use

Treating seed is no longer a slow, messy, inaccurate, complicated job according to Brian Ellis, Graham Seed Treating Systems. The company is the leading Canadian manufacturer of both on-farm and commercial seed treating equipment. “We offer the P2 and P3 lines of auger-based treaters suitable for farmers looking to treat only a small amount of seed each year, as well as the G3 line for large farms, seed growers, and seed retailers. In 2010 we will be introducing the G4 line for large commercial applications.”

For growers treating their own seed on-farm, Ellis says the most important consideration when choosing a treating system is ease of operation and cleaning. “All our products are pre-calibrated for all seed treatments on the market,” says Ellis. Charts supplied with each treater outline application rates for various products and crops. The company also provides a toll free support line to answer any questions customers may have about application rates for new products, or how to operate the equipment.

Accuracy is also critical, says Ellis. “The more accurate the treater, the better. Make sure the treating system not only applies a constant amount, but that the treatment is evenly distributed on all seeds.”

While many growers believe seed treating is a time consuming

job, Ellis says the G3 treats 20-25 bushels a minute. “You can treat a tandem load in about 20 minutes.” Before buying a system, he says, you should know how much grain you need to treat, how fast you want to treat it, and with what products it will be used. For example, a grower who wants to seed-apply both an insecticide and fungicide may want to consider a system like the G3 which is configured to allow the addition of a second applicator. Using two applicators in series avoids worries about tank mixing of products or treating seed twice.

Growers should also consider future needs such as using a seed treating system for application of nutrients or inoculants. Does the pump have enough capacity for high application rates of all products you might want to use in the future? Think ahead. FF

Farm Forum.cA | 13

business

Customize your own fringe benefits package

By Cindy Bablitz

Everyone who farms knows they’re in a risky business. And especially if you operate a small family farm, the group insurance and other fringe benefits enjoyed by urban dwellers working for big corporations may seem an enviable luxury.

But there are ways to access health and dental coverage as well as other types of insurance and pension plans even if you’re a sole proprietor.

One way is to incorporate your business and set up your own company benefits package. This can be done for just a handful of family members or even a single employee (you). But although incorporating a family farm has many advantages, access to health insurance 14 | Farm Forum | winter 2010

“There’s not much advantage to beand other benefits is not one of them. Indeed, until income tax liability becomes ing incorporated if you’re just the averan overriding concern, incorporating age size farm because you can do a lot of income splitting as a small family a sole proprietor by farm seldom makes paying your kids and much sense.

A PHSP allows business your spouse wages Farmers running owners to deduct 100 per for doing chores and a sole proprietoradministration,” exship have the opcent of eligible medical and plains Doug Marketion of using cash dental expenses from their wich, a tax and rather than accrual estate planning speaccounting and paygross business income cialist with Daystar ing tax on a cash Financial Group. basis. That option, not available for corporations, has tax In western Canada, one of the largest benefits that play into an overall business providers of supplementary health covplanning strategy. erage is Viterra. All Viterra customers

Photo (left) ©istockphoto.com/livingimages

Check out insurance options on the Internet Farmers operating as sole proprietors have a host of ways to access supplementary health and dental benefits. It’s not necessary to incorporate to qualify for these programs although, if you do incorporate, you still can access the same group benefits programs as sole proprietors or partnerships.

“We’ve always looked at our farm as a business, even though it’s truly a family farm,” says Cherilyn Nagel, director and past president of the Western Canadian Wheat Growers Association. She, her husband David and his family operate an incorporated farm of 12,000 acres near Mossbank, SK. “Our family farm has been around for 100 years — we just celebrated a century this year — and practicing risk management has been a real focus for David and me.”

At the personel level, risk management for the Nagels has included thoughtful health and wellness practices supported by supplementary coverage through the Western Canadian Wheat Growers Association.

“We’ve always put money away into our savings, and as soon as we began having children we started putting money away into college funds for them. As well, we’ve got a lot of investments outside the farm. Many farm operations have financial portfolios very heavily weighted in farming assets — and ours is too — but we’ve also tried to diversify to minimize our risk.”

A few options for farmers looking for supplementary health benefits programs include: > Viterra: www.farmforum.ca/viterrabenefitsprogram > Agrifoods International Cooperative Ltd.: www.farmforum.ca/agrifoodsbenefitsprogram > Keystone Agricultural Producers: www.farmforum.ca/keystonebenefitsprogram > Agricultural Producers Association of Saskatchewan: www.farmforum.ca/SKbenefitsprogram > Cost Plus: www.farmforum.ca/costplusbenefitsprogram As well, many grower associations offer supplementary health benefits programs to customers or members. For links to grower associations affiliated with the Grain Growers of Canada visit www.farmforum.ca/costplusbenefitsprogram and look on the left under Our Partners. FF

ual circumstances. Other options include individual pension plans (IPPs) and the new tax-free savings accounts (TFSAs.) For an outline of IPPs, see www.farmforum.ca/IPPinfo.

The TSFA “is an absolute windfall,” adds Markewich. It lets individuals save and invest $5,000 per year, or $10,000 per couple, with no tax implications. You get no tax deduction up front, but pay no deferred tax on withdrawal of either principal or compounded income from interest, dividends, or capital gains. FF

farmforum.cA

(whether they haul grain to the company’s elevators or buy farm supplies from its retail outlets) are eligible to access supplementary health benefits through the company. Many farm organizations also offer supplementary health programs to members or customers.

Typically, clients are invited to custom design their benefits plan according to their own anticipated needs for dental, vision care, prescription drug coverage, hospital and ambulance services, remote access to professional medical second opinions and life insurance, travel insurance, critical illness insurance and long term disability insurance. And that’s not a complete list.

Basic family supplementary health plans cost as little as $219 per year and many offer additional coverage for medical services such as chiropractic, physiotherapy, massage therapy, naturopathy, psychology and speech therapy. Of course, the age of an applicant, home province and desired coverage means premium costs will vary widely.

“For many family farmers — and even for incorporated farming operations — one of the best ways to manage health care costs is by using a Private Health Services Plan (PHSP),” says Dennis Petaski, director of member benefits and services with STRATA Benefits Consulting Inc. A PHSP allows business owners to deduct 100 per cent of eligible medical and dental expenses from their gross business income — just as a farmer deducts fertilizer as an expense against income. When these health benefits are offered by an employer to an employee using a PHSP, they are a tax-free benefit to the employee. With a PHSP, money spent on health care and dental services is completely tax deductible and a tax-free benefit to the owner or employee and their families.

The plan can be used on its own or to supplement an existing group insurance plan. For a more detailed look at the PHSP visit farmforum.ca/phsp.

On the topic of retirement savings plans, Markewich says the most important part of the equation is “savings.”

And while RRSPs have been the gold standard for retirement savings — offering a tax incentive now for deferred taxation on funds withdrawn in retirement — Markewich believes RRSPs aren’t always the best plan. It depends on your individ-

for more information visit us online online articles Complement retirement savings with a TFSA www.farmforum.ca/TFSA EI benefits extended to farmers www.farmforum.ca/EIbenefits How to use a PHSP in your farm business www.farmforum.ca/PHSPinfo additional resources Individual Pension Plans (IPP) explained www.farmforum.ca/IPPinfo Strata Benefits Consulting Inc. www.farmforum.ca/strata Daystar Financial Group Inc. www.farmforum.ca/daystar Farm Forum.cA | 15

production

Velocity m3: a triple threat to weeds in wheat

By Jennifer Barber

Every year the problem was becoming more obvious. On Ray Gillis’ farm, wild oats were showing up in his field long after he had sprayed to eliminate them. Like a steadily increasing number of farmers on the Canadian prairies, Gillis was experiencing resistance to Group 1 herbicide chemistry.

“In this area we really have had to watch for resistance and the resistant wild oats were getting to be a problem,” says Gillis, who farms with his son near Baldur, MB. “We try to manage our risk for developing resistance — we rotate our cereals with canola and we’re always on the lookout for new modes of action. That’s why Velocity m3 really grabbed our attention.”

Gillis heard about Velocity m3 before the product was launched in spring 2009. It’s a new product from Bayer CropScience that combines three chemistries, each a proven performer on its own and together touted as an excellent management tool in the fight against weed resistance.

“We took a gamble and decided to spray our entire wheat crop — all 2,500 acres — with Velocity m3,” says Gillis. “We had excellent results. The crop was clean all the way through.

We ended up with a 70 bu/ac wheat 16 | Farm Forum | winter 2010

that, given the growing conditions this past crop year, was much better than we expected.”

Gillis had used Infinity the previous year to control his broadleaf weeds in his wheat and was pleased with the performance of the product. Infinity contains the first new

here, close to drought conditions and we were concerned about the performance of all of our products. But we could tell soon after we sprayed with Velocity m3 that our crop would win the battle.”

The launch of Velocity m3 was extremely successful. Its introduction into

selective cereal broadleaf mode of action in Canada in over 20 years. When he heard that Infinity was part of the Velocity m3 package for total weed control, he knew he had to give it a try.

“When you can get the crop ahead of the weeds, you are in a good position,” says Gillis. “It was unusually cool and dry

the marketplace was the second biggest herbicide launch ever, second only to Bayer’s launch of Infinity the previous year.

Velocity m3 immediately captured 1.2 million acres on the ground and 5.9 per cent market share. In fact in Manitoba, Velocity m3 took control of 17 per cent market share in the first year of its release.

Photo (bottom left) courtesy bayer cropscience

Velocity m3 should be part of a balanced approach to weed resistance. Having multiple modes of action helps fight resistance. of action helps fight resistance. We’re pleased to offer one part of that balanced approach to weed resistance management. Our customers demand top performing, noticeable, long lasting results and this product delivers on those expectations.”

Velocity m3 also has the a widest application window available, although Davis cautions that weed control is at its best when weeds are small, and getting them early results in better yield opportunities. Most major crops can be planted back to back, however there is a 22-month recropping interval for lentils.

“Velocity m3 offers one solution for grass

Words of the trade Farming today often involves a rudimentary knowledge of chemistry. Producers quickly get up to speed on the herbicide products they use and the terminology surrounding them, but they may not have a clear understanding of what all the terms mean. Below is a list of common terms associated with herbicides, and their definitions.

desired damage. Systemic herbicides can be used to battle both annual and perennial weeds.

Mode of Action

ACCase inhibitor

This phrase is often associated with resistance management, and refers to the way in which a plant is affected at the cellular level. Herbicides classified under the same mode of action move through the plant in the same way (often referred to as translocation), with the same symptoms of injury.

These herbicides interrupt enzyme activity that is needed for fatty acid synthesis, which allows the weed to continue to grow.

By inhibiting the enzyme activity, ACCase inhibitors stop cell membrane production in the plant.

ALS Inhibitors

Selective herbicide

These herbicides essentially starve affected plants by interrupting the absorption of amino acids. In the end, it doesn’t allow the DNA in the plant to fully synthesize. ALS inhibitors are among the safest herbicides as the ALS pathway does not exist in animals.

These herbicides attack certain types of weeds/plants, while leaving others primarily untouched. Whether a herbicide is called selective may also depend on the time applied, the environmental conditions, how the product is applied, the stage of growth, chemical formulation or the rate applied.

Non-selective herbicide These herbicides will harm or kill all plant material when applied. However these may become selective, for example, if the rate of application changes.

Systemic herbicide Systemic herbicides are absorbed at one of two points — in the leaves or by the plant roots. The herbicide is then translocated throughout the plant to cause the

and broadleaf weeds in wheat, and we’re continually investing in similar solutions for other crops,” says Davis. “With Velocity m3 there is no need to tank mix with another product. Right now there are two jugs in a case of Velocity m3 and down the road we plan to combine all three actives into one jug. This is part of a slow change in our industry to all-inone products.”

Gillis agrees that ease of use was one of the things that drew him to the product. “If we can get things done quicker and cleaner, that’s a big advantage.”

“I can tell you now that we plan to use Velocity m3 on our wheat next year,”

Contact herbicide Contact herbicides are most commonly used to tackle annual weeds. As the name implies, they only affect the point of the plant that is actually touched by the chemical.

Bleachers Bleachers are part of a new herbicide group known as HPPD inhibitors. These products stop production of protective pigments that allows ultraviolet light to destroy chlorophyll, preventing photosynthesis. This results in the plant tissue turning white, with the effect that the colour has been bleached from the leaves.

Active Ingredient This refers to the compound within a herbicide that is responsible for its chemical activity. FF

says Gillis, who with 6,000 acres of cropland will be rotating a large portion of his field from canola back to wheat next year. “It’s safe, it’s effective and it’s easy to use. It makes taking on resistant weeds an easy decision.”

For more information about Velocity m3 visit www.farmforum.ca/velocitym3 FF farmforum.cA

“Farmers had great success with Infinity on broadleaf weeds, but with increasing grass control problems we knew we needed to come up with a single complete solution,” says Lauren Davis, cereal herbicides portfolio manager for Bayer CropScience. “The result is a cross product with three modes of action and usage convenience for the grower.”

“Velocity m3 is a new way to control weeds in wheat,” he adds. “It includes Group 27 pyrasulfotole, which controls Group 2 resistant weeds including kochia and cleavers and is found in Infinity. The Group 2 chemical, thiencarbazone-methyl, controls Group 1 resistant grass weeds, including wild oats and foxtail (millet.)

And bromoxynil, a proven winner, has no known resistance.”

Right now there are only two reliedupon options for wild oat control in Canada — ACCase (Group 1) and ALS-based (Group 2) chemicals. A recent survey in Alberta estimates the province has up to 23 percent ACCase resistant weeds. While currently there are limited issues with ALS resistance, Davis says Bayer’s goal is to bundle and promote a healthy rotation of both chemistries to ensure a viable solution for growers into the future.

“Velocity m3 should be part of a balanced approach to weed resistance,” says Davis. “Having multiple modes

for more information visit us online online articles How herbicides work www.farmforum.ca/herbicidesinfo additional resources Velocity m3 information www.farmforum.ca/velocitym3 Farm Forum.cA | 17

I get goosebumps.

I can’t help it – it’s an involuntary response that comes with harvesting an incredible InVigor® hybrid canola crop. Every year about this time I see the endless fields of InVigor and I can’t control myself. The early season vigor, high stress tolerance and the market-leading yields are second to none.

Nothing outperforms.

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative. ® read and follow label 18 |Always Farm Forum | winter 2010 directions. InVigor is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

InVigorResults.ca Farm Forum.cA | 19 11/09-12006-01A

Technology

Grain bins go high-volume

by Angela Lovell

Farmers are thinking big when investing in grain storage facilities. But while big bins make economic sense, the investment seldom stops with the bins.

Grain handling equipment and monitoring systems usually have to be upgraded too. And harvest practices might have to be adapted.

“We see a distinct swing from the smaller bin to something with a capacity of 56,000 bushels,” says Jim Weeda, sales and marketing manager with grain bin manufacturer Westeel Storage Solutions.

“The cost per bushel goes down dramatically with larger bins.”

Hand in hand with those larger bins go monitoring systems that have become more or less standard, especially on new 20 | Farm Forum | winter 2010

bins. “These days no self-respecting farmer would build a bin without a monitoring cable on the side of it,” says grain grower Ed Rempel of Starbuck, MB. “If you lose a 10,000-bushel bin of canola that’s $80,000. That makes a $400 cable pretty cheap.”

Monitoring is especially important with large bins, says Blaine Timlich, a stored products entomologist (insect specialist) with the Canadian Grain Commission. “The biggest drivers for spoilage are temperature and moisture,” he adds.

“With a large bulk, grain around the outside will get cold before grain at the core. That creates convection currents.

Cool air will drop down and force warm air up the middle of the bin and cause

condensation, even if the grain is dry to begin with.”

Problems usually start before the grain even enters the bin, especially when a wet fall means crops are harvested at higher than desired moisture content. It can be a particular problem in late harvested oilseeds like canola and flax. It’s not always easy to get grain to a dryer right away, especially if demand on dryer capacity is high. So special attention might be needed in the short term.

“If you have high moisture content and need to store it for the short term, before you can dry it down, throw it in an aeration bin, keep it cool and then take it to a dryer when you can,” says Mark Cutts of Alberta Agriculture, Food

photo (RIGHT) courtesy bayer cropscience; (right) COURTESY meridian manufacturing group

Some end users are saying they won’t accept grain that has been piled on the ground because of the possibility of dirt, insects and mycotoxin contamination posing a potential health threat it so much they always steer towards a conveyor after that.”

In-field storage is still common on many farms, especially for bulky, lowervalue crops like oats, but it might become harder to market grains that have not been properly stored in bins, according to Chuck Fossay who farms near Starbuck, MB. “In the past, farmers would sometimes store grain in a pile in a field or put it inside an old barn or shed,” says Fossay.

“Some end users are saying they won’t accept grain that has been piled on the ground because of the possibility of dirt, insects, and mycotoxin contamination posing a potential health threat.”

Plastic grain bags have also been used successfully by many farmers for in-field storage. Obvious advantages include the low cost, convenience and reduced transportation costs. Disadvantages include managing and disposal of the bags.

For example, in Saskatchewan, ravens were puncturing bags and some areas have prohibited their disposal in municipal garbage dumps.

Safety is another issue to consider

Keep an electronic eye on binned grain Grain monitoring systems can be as simple or sophisticated as requirements and budget dictate, but if grain in a bin is not being carefully monitored on a regular basis it can encounter spoilage and pest damage. And the bigger the bin, the greater the potential loss.

Monitoring systems can’t solve grain storage problems, so it pays to be vigilant and understand the data you’re receiving. “The information is only as good as your ability to use it,” says Dave Crompton, founder of OPI Systems in Calgary, a manufacturer of grain monitoring systems.

The LEV-Alert by Meridian Manufacturing Group uses a sensor to indicate when a bin is approaching capacity.

Here is a brief rundown of some monitoring systems on the market: Hand-held digital monitors connect to cables inside the bin that feed back information on temperatures at different locations throughout the grain mass. Some models, like OPI Systems’ StorMax, can graph data, making it easier to compare on a day-by-day basis.“It gives you better readings,” says grain grower Ed Rempel, who recently upgraded to a StorMax hand-held monitor. “It will give you all the temperatures at once so you can check the profile and see if your bin is warming up.

It’s a powerful little tool.” TheEasyCheck, another hand-held monitor, is produced by Westeel Storage Solutions of Winnipeg, MB. PC-based automated monitoring systems vary in complexity and are generally more cost-effective for larger grain handling operations. OPI Systems has two versions, the Integris Basic with monitoring and alarms, and the Integris Pro that completely automates all controls in the grain handling and monitoring system, such as turning aeration and drying equipment on and off as needed.

Insect detection also benefits from high-tech wizardry. The Insector Probe from OPI Systems collects insects inside the grain and funnels them past an infra-red beam to provide data which the device uses to analyse the density and type of insect population in the bin. FF

when buying grain storage and handling equipment. For safety reasons more and more farmers are choosing smooth walled hopper bins that are easy to load, unload and clean without augers or the need to enter the bin.

A small add-on device, worth little more than $100, can also help make loading bins safer. The LEV-Alert, manufactured by Meridian Manufacturing Group, uses a sensor to raise a fluorescent marker above the bin when it’s approaching capacity. “Too often someone has to climb up and look into the bin at harvest time, usually in the dark, to see how full it is,” says Sid Lockhart, Meridian’s marketing manager. “This device eliminates the need to do that, as you can

see the marker clearly from the ground. It is probably the cheapest safety insurance a farmer can get.” FF farmforum.cA

& Rural Development. “Then you can put it back into storage and sell it at your convenience.”

On many farms, augers (especially when single phase power is the only option) just don’t have the speed and capacity to keep up with higher volumes of product. Increasingly, farmers are looking at belt conveyors that can handle in excess of 10,000 bushels per hour. These conveyors are being built up to 130 feet long for larger, higher bins. Elias Reliabelt in Morden, MB, manufactures belt conveyors and has seen a dramatic increase in demand for its systems. “Guys used to think all they needed was an auger,” says owner Mark Elias. “But if they buy one conveyor (instead of an auger), they like

for more information visit us online online articles Options to dry grain on-farm www.farmforum.ca/dryinggrainonfarm Essential grain storage tool kit www.farmforum.ca/grainstoragetoolkit additional resources Hand-held digital monitors from OPI Systems www.farmforum.ca/digitalmonitor Elias Reliabelt: belt conveyor manufacturer www.farmforum.ca/reliabelt Meridian Manufacturing Group www.farmforum.ca/meridian Grain drying FAQs: Saskatchewan www.farmforum.ca/SKgraindryingFAQs Grain drying and storage of damp grain: Manitoba www.farmforum.ca/MBdampgrain Farm Forum.cA | 21

fa r m l i f e

‘Green’ and growth go hand in hand

By Jennifer Barber

Bob Switzer, one of Canada’s Outstanding Young Farmers’ program winners from 30 years ago, moves cattle on his ranch in Aneroid, SK.

Farmers were “green” long before the word took on its current significance.

By its very nature, farming has to be sustainable. But some farmers put extra stress on their land stewardship responsibilities. And Canada’s Outstanding Young Farmers’ (OYF) program has been rewarding such forward thinking practices for 30 years.

The program began in the United States in the 1950s and was introduced in Canada in 1979 to help foster better urban-rural relations and recognize the achievements of farmers across the country. The first national OYF winner was announced in November 1980.

That honour went to Bob and Sandra Switzer, owners and operators of Sandy Bar Ranch in Aneroid, SK. It’s been 30 years since they were recognized for their innovative ranching practices and Bob continued that spirit of growth even after his wife died in 1988.

22 | Farm Forum | winter 2010

When we won the award, we were looking into conservation tillage and with the purchase of an air seeder, had started switching away from summerfallow — Kenneth Storch “Back then we had two sections of land and 100 cows,” he recalls. “We had just started making a name for ourselves selling Black Angus bulls. Today I have remarried and together with my wife Gail, we have more than 10,000 acres of land, 500 registered purebred Black Angus cows and have just held our 32nd annual bull sale.”

He believes they were recognized in 1980 in part because of their sustainable farming practices. Thirty years ago half their ranch was under soil/water conservation with spring flood irrigation systems. In addition they had planted shelterbelts, an innovative idea in those days.

His efforts in sustainable management have continued over the years. One of the first in the province to complete an Environmental Farm Plan on his ranch, Switzer was also an early member of the Quality Starts Here verified beef production program. He has been active with the Canadian Angus Association and is one of the founding members of Red Coat Cattle Feeders, a 20,000-head community feedlot.

“I’ve never ever regretted my decision to make my life on the farm,” he says. “We’ve had an excellent life, and now three of my four kids are involved

Entrance to the Storch family ranch in Hanna, AB.

was in summerfallow in any given year.

“When we won the award, we were looking into conservation tillage and, with the purchase of an air seeder, had started switching away from summerfallow,” says Kenneth. “Yes, we were still cultivating a lot, but it was a step in the right direction.”

Bob and Gail Switzer, owners and operators of Sandy Bar Ranch in Aneroid, SK.

By the early 1990s they had shifted entirely to continuous cropping, and had implemented improved pastures for their 140-head cow-calf operation. Today, they get twice as much done with half the equipment they had 30 years ago. They also include more rotational grazing and use solar water pumps.

The move to no-till meant the explosion of another crop — canola. “Thirty years ago nobody thought we could grow it in this area [east-central Alberta],” he says. “But with the improved soil conditions, better varieties and shorter growing times, canola is now an important part of our farm.”

The Storches say that OYF offered them opportunities to tell others their story of conservation, but it also opened their eyes to issues that face farmers across the country. “It doesn’t matter if you are a grain farmer in Alberta, an orchard grower in B.C. or a strawberry grower in New Brunswick — our situations may be different but the problems we face are very similar. The OYF program helps bring farmers from all walks together.”

The two say that at this point in their careers they’re fine tuning their operation, rather than making big changes. “I’m sure we haven’t come as far as we can, but we get closer every year,” says Kenneth. FF farmforum.cA

Photos (top left & bottom right) courtesy the switzer family; (top right) courtesy the storch family

in ranching. My parents ranched, I ranched and now my kids are ranching.

We’ve been able to maintain our success through careful growth and being open to new ideas.”

Canada’s Outstanding Young Farmers’ program recognizes young farmers between the ages of 18 and 39 who show business innovation. Nominees are drawn from farmers who make a minimum of two-thirds of their income from their farm operations. Each year one farming couple is named at each of the regional events, with a winner chosen from those seven finalists. Among other criteria, judges look at progression throughout their farming careers, use of soil, water and energy conservation practices and contributions to their community.

Kenneth and Lynda Storch were regional winners in the program’s inaugural year. Together they have grown the Hanna, AB farm that has been in their family since 1921. Along with their son and his wife, they run the farm almost entirely on their own as a truly family operation.

In 1980 land was still heavily cultivated and the Storch family was looking for a way to better protect the soil. At that time a third of the family’s 3,800 acres

for more information visit us online additional resources Canada’s Outstanding Young Farmers’ Program www.farmforum.ca/oyfprogram Sandy Bar Ranch www.farmforum.ca/sandybarranch

Farm Forum.cA | 23

treated with all due respect

ProsPer FX. THe ProTeCTIoN THey DeserVe.

The best seeds deserve the best seed treatment. Last year, over half of the canola acres in Canada were protected with Prosper®.

Prosper® FX provides unmatched control of flea beetles and seed and soil-borne diseases like rhizoctonia and fusarium. Make sure your seed is treated with the respect it deserves – you’ve earned it.

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

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

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