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A LOOK AT AGRICULTURE

MARCH 16, 2016

2016

A SUPPLEMENT TO THE

C2 • Wednesday, March 16, 2016 • A LOOK AT AGRICULTURE 2016

Agriculture help needed Toohey said. He published two ads ‌Agriculture needs help in separate newspapers. “I got two responses,” in North Iowa. Economic development Toohey said. Low unemployment officials in the region said rates in area counties there are plenty of direct make it tough to find and non-direct agriculemployees, Kramer and ture jobs in the region. Nicholson said. “There are definitely The most recent agricultural sector jobs unemployment rate in available,” said Teresa Hancock County is 2.5 Nicholson, the director percent for December. It’s of the Winnebago Worth 3.4 percent in Winnebago Betterment Corporation. County and 3.7 percent in Nicholson recited a Worth County. The rate short list of jobs availin neighboring counties is able with cooperatives, ethanol plants, feed mills below 4 percent. Available jobs will vary and others. in type, work and needed Ag employers in Hanrequirements. cock County are looking “What new business for part-time, full-time and seasonal help, said Jill and industries are here that weren’t here 20 years Kramer, the director of ago?” said Beth Bilyeu Hancock County Develthe director of Forest City opment. Economic Development. Vern Toohey of North Bilyeu said ethanol Central Cooperative in plants, feed mills and Kanawha said it’s tough to find the right employee similar additions have changed the scope of these days. employment in agricul“I’m going to have a guy retire in the first part ture. Kramer said some jobs of April and I’m lookat food processors and ing at adding a full-time truck driver,” Toohey said. manufacturers require math and science skills. “That’s tough.” Even a local farming “This is a good job operation has a marketing with full benefits and director, Kramer said. a competitive salary,”

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A field near Crystal Lake in Hancock County was being prepared for planting on April 29, 2015.

RAE YOST

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The three economic development directors said they cooperate to share information on available agricultural jobs. The three entities share a website called www. gotjobsgotwork. They also monitor the Iowa Workforce Center website and information. Nicholson said ag employers may advertise jobs on their own

websites, in various newspapers and shoppers or with other entities. Kramer said the availability of good agricultural jobs in the region combined with other features such as lower cost of living than in many metropolitan areas, lower home costs and lower related expenses make the region an attractive place to live and work.

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A LOOK AT AGRICULTURE 2016 • Wednesday, March 16, 2016 • C3

Women improve grain marketing skills didn’t have the background, it would be tough to understand,” Peter‌THOMPSON — Verna son said. Reese and Sharon Josten Participants had already have been part of farming started to learn about puts operations for at least 50 and calls, no base contracts years. While they know some things they wanted to and hedge to arrive. “We’re trying to do learn more. “If we were so smart we this (marketing) together,” Jenny Kramersmeier said wouldn’t be here,” Reese of she and her husband. “I said with a laugh. The two women are part like my hand in it and we are trying to make more of a group of women that joint decisions. So, I need has met the past several weeks to learn about grain to know what’s going on.” Marketing grain is more marketing. The class is than selling when the price sponsored by Farmers is high, participants said. Cooperative Association “Margins aren’t as in Forest City and the Winnebago County Exten- spectacular now,” Kathy sion. It meets on Tuesdays Lewerke said of crop costs related to per bushel grain at the Branding Iron prices. She wants other in Thompson. options to get the most Some participants are learning to provide help with marketing to their husbands, to serve as a back-up in case their husband gets ill or to better manage their own land and grain. Josten said she joined the group “just to get better educated on the whole process. To have a better understanding of marketing terms.” Josten farms with her husband LuVerne. “I own land and I have grain that I need to market,” Reese said. Dolores Blake has owned land since about 1987. “I want a better understanding of different marketing methods,” Blake said. “To understand the complexity...of opportunities.” Marc Peterson, from Montgomery, Minnesota, was teaching a recent class. The participants were learning the complexities. He expected to add another layer to it the night he taught. “A lot of what I will present tonight, if they RAE YOST

rae.yost@globegazette.com‌

benefit from her crop. Peterson said men make up 90 to 95 percent of the audience for most of his presentations. “This is an excellent thing to do,” Peterson said of the class for women. “Farming has changed so much. It’s much more complicated.” Farmer’s Cooperative and Winnebago Extension expected interest in the course, said Jodi Nordskog of the cooperative. Nordskog and Jennifer Roth of Farmers Cooperative said women can be uncomfortable asking questions in a mixed gender group. The women-only course makes it more comfortable for participants to learn and ask questions, they said.

The group is under 20 participants which also makes it comfortable for participants to ask questions, Nordskog said.

“We’ve had great attendance. We had requests to continue after four weeks,” Nordskog said. The class was extended for

several weeks. The sponsors have already been contacted about having another class, Roth said.

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C4 • Wednesday, March 16, 2016 • A LOOK AT AGRICULTURE 2016

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North Central Cooperative ready for spring work percent soybeans,” Toohey Even as grain prices, particularly corn, stay low, said of crops planted in customers’ fields. “We will Toohey said he doesn’t ‌KANAWHA — They use big equipment but the expect many customers to still have corn on corn but not like it was when corn details are very imporrtant. cut back on spring appliwas $7 or $8 (a bushel).” cations. Vern Toohey of North “The input costs on “There might be a few Central Cooperative in corn are higher than soyminor cutbacks but not Kanahwa will mix and beans,” Toohey said. match treatment products too many,” Toohey said. Some farmers in North If farmers cut nitrogen to give farmers the best Iowa have chosen to plant combination for their fields or other products they conventional corn rather risk cutting their yields, this spring. than other breeds such as “We do things to tweak he said. Higher yields help off- Roundup Ready corn as a (application ingredients),” way to cut costs. set lower prices. Toohey said. “I can’t say that we Low prices may prompt The soil type in the will see much convenfarmers to plant less field, the type of crop to tional corn,” Toohey said. corn this year on fields be planted, the type of “Conventional corn does which had corn last year, weed that could infect not have a lot of the newer Toohey said. the crop and the type of RAE YOST, THE SALUTE TO AGRICULTURE genetics. It’s hit a plateau “We’ll probably see insect that could damage Vern Toohey of North Central Cooperative in Kanawha talks about spring field work. as far as yields.” 60 percent corn and 40 the crop all have a role in choosing which fertilizers and herbicides and how much to place on a field, Toohey said. The mix includes growth inhibitor, pigment inhibitors and others. The goal is to provide the best coverage at the best cost to the farmer so he can maximize his yields. The techology such as GPS “gets better every year,” Toohey said. It also “gets more expensive every year” to add GPS and other software upgrades to equipment, Toohey said. “In the long run the farmer is paying the price in the end but the goal is the overall savings per acre,” Toohey said. The more precise NCS is the better the yield, the better the savings in input costs, Toohey said. NCS’s four terragators, six tankers, two fertilizer spreaders and one post emergence sprayer should www.mbtbank.com be in area fields in several Darin Theel Mike Koch Scott Drexler Brian Knudtson weeks, Toohey said. “Anytime before the Forest City Forest City Lake Mills Lake Mills Member 10th of April is an early Find us on 585-LEND Crystal Lake 592-0041 592-0041 Facebook FDIC start,” he said. 565-3231 RAE YOST

rae.yost@globegazette.com‌

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A LOOK AT AGRICULTURE 2016 • Wednesday, March 16, 2016 • C5

Agricultural business helps with season’s work for farmers stuck in area fields. “Some springs are ‌RURAL FOREST CITY pretty busy depending on – Spring is coming and the year,” he said. Mike Hadacek is ready Hadacek said farmfor it. ers who need their semi Spring means farmers trucks worked on can also will be in the fields and come in to the business. Hadacek will stay start “We work on a lot of getting busy at North Central Sales and Services semis for farmers and local cooperatives,” he said. of rural Forest City. Along with other “It’ll come back farm equipment. into our busy time,” “We do a fair amount Hadacek said of the sumof service calls for farmmer months. ers. Especially in the He manages the rural Klemme and Garner area,” Forest City business Hadaceck said. with his wife, Marlena. They also haul His brother, Bob, owns farm equipment. the business. “We do custom truckNorth Central Sales ing. We transport agriculand Services supplies Gehl loaders to local dairy ture equipment around farmers and other farmers. the area for our clients,” Marlena Hadacek said. Hadacek said they also She has been helping provide towing services ALLISON ULLMANN

allison.ullmann@globegazette.com‌

her husband manage North Central Sales and Services for the past five to six years. The business has been in place since 1988.

“We enjoy being a part of Forest City as a long-time business and offering our services to the community,” Marlena

Hadacek said. Those services are expanding as the business is getting into the industrial construction side.

“We’re excited to branch out and look forward to what the future holds,” Marlena Hadacek said.

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C6 • Wednesday, March 16, 2016 • A LOOK AT AGRICULTURE 2016

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Farmers say hard work important in sales Iowa Soybean Association (ISA) president-elect, spent time in Thailand Feb. 20-26 ‌Selecting the best seed, developing effective nutri- as a guest of CP Thai, the ent management plans and country’s largest privately held company and one of using the right products the world’s largest food at the right time to conconglomerates. It opertrol disease and pests are ates poultry, shrimp and soybean production funswine farms, 160 feed mills damentals. But in today’s global and highly competi- (including 16 in Thailand and 84 in China) and a tive marketplace, produccache of retail fast and fasting high-quality protein casual food outlets located doesn’t guarantee you’ll throughout Thailand, make a sale. “You have to work just as Southeast Asia, Europe, the Middle East and beyond. hard at making the sale as Unable to source soyyou do producing the prodbeans locally, Thailand uct,” says Rolland Schnell, and the companies located a soybean farmer from Newton. “It’s about striking there – including Bangkokbased CP Thai – must look a balance throughout the entire chain, from establish- elsewhere. Last year, the country of 75 million people ing favorable regulations and producing a quality crop imported 3 million metric tons of soybean meal and 2 to developing demand and million metric tons of whole building markets. You need to work on them all and you soybeans. Roughly onefifth of this product was need to do them well.” purchased from the U.S. farmer-owned and OmahaGUEST OF CP THAI based Ag Processing Inc. Schnell, who serves as FROM THE IOWA SOYBEAN ASSOCIATION

(AGP) as an ideal partner, helping move soybeans from the upper-Midwest and through Grays Harbor to destinations across the Pacific. “Four or five years ago, we didn’t have much of a market presence in Thailand,” said ISA CEO Kirk Leeds. “But that has changed thanks to investments made in our domestic transportation infrastructure and equally important, time spent developing relationships with soybean buyers and the companies they represent.” In 2013, an ISA delegation led by Iowa Lt. Gov. Kim Reynolds hosted a reception for a number of major soybean buyers from Thailand. CP Thai senior management attended. In December 2014, a multistate soybean delegation, including Shipley, traveled to Indonesia and met with CP Thai officials. Iowa soybean farmers then hosted

the company’s senior management last year when they met personally with Reynolds and made stops at the ISA office in Ankeny and farms in several Midwest states. Those discussions led to last month’s visit to Thailand by Leeds and Schnell. They were joined by ISA President Wayne Fredericks of Osage, District 7 Director Bill Shipley of Nodaway and representatives of AGP and the Missouri and Nebraska soybean associations. Serving his third year as a member of the ISA board, Shipley said three factors are critical to making a sale: price, quality and quantity. Relationships are the needed to close the deal. “Obviously, economics matter as does the quality and quantity of the soybeans – you can’t dump an inferior product on the market,” said Shipley who serves as chair of ISA’s demand committee. “But

trust also matters when doing business and you establish and deepen it by spending time together, listening to each other and understanding where you as partners are coming from and where you want to go.” PHILOSOPHIES ALIGNED Fredericks said that

when you spend time together, you converse. In turn, those conversations create the forum for sharing philosophies. When those philosophies align, relationships are established as are opportunities to do business. MARKET, PAGE C7

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A LOOK AT AGRICULTURE 2016 • Wednesday, March 16, 2016 • C5

MARKET From C6 “From our time spent together, it’s apparent that soybean farmers, AGP and CP Thai share many of the same philosophies,” he said. “They include working efficiently, producing and delivering a quality product and doing business the right way and with a concern about others. We’re all partners in raising the standard of living for people at home and across the globe.” And that globe is shrinking. Schnell, who has worked to build preferences for U.S. soy in Turkey, the Philippines, China and Europe, said touring one of CP Foods’ four poultry processing facilities while in Thailand last month reminded him of how closely linked soybean farmers are to their customers. “It’s mind-boggling to think that in just a matter of weeks, soybeans grown on my farm can be harvested, transported to Thailand and fed to poultry that then becomes the chicken fillet burgers enjoyed by consumers throughout southeast Asia and beyond. That illustrates the interconnectivity we have and the importance of

Make the Right Choice for Your Farming Operation! If it’s time to upgrade your equipment or facilities, visit with our experienced lenders. We’ll help you make the right choice for your operation. Our staff knows your time is important and we’ll do our best to get you what you need to make your operation successful. A farmer combines soybeans in Winnebago County. maintaining it.” That’s particularly true when one looks at population trends and where the potential for economic growth exists. ECONOMIES EVOLVING “The vertical integration of the ag and food industries in developing countries will allow their economies to evolve very quickly,” Schnell said. “This will allow millions and millions of people to rapidly climb the economic ladder. You already see it happening. So many of the cars we saw on the road while in Thailand were less than five years old. “You also see firsthand the construction of massive new roads and passenger rail lines in places like Singapore, Bangkok and Beijing, which will allow more people to gain full time employment and

actively participate in the global economy. And as their salaries increase, they will want more and higherquality food. Iowa farmers will be who they look to for improving their diets and lives.” For Shipley, it’s exciting to consider the potential and opportunities. “When I participate in trade relations, I want people to know we’re interested in their company and what matters to them,” he said. “I also emphasize we’re ready to provide the product in the quantity and with the quality they need. “My time in Thailand has further convinced me the country is going to keep expanding its animal protein market, which means they will need more feed and that means they will need more soybean meal. They’re not done growing by a long shot, that’s for sure.”

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Iowa corn farmer leaders set policy at Commodity Classic FROM THE IOWA CORN GROWERS ASSOCIATION

Iowa Corn farmerleaders headed to New Orleans, Louisiana this past week to take part in the 2016 Commodity Classic. The delegation from Iowa consisted of both Iowa Corn Growers Association (ICGA) and Iowa Corn Promotion Board (ICPB) directors, farmer-leaders, Premier County Achievement (PCAP) winners and the Collegiate Advisory Team (CAT). A main task for ICGA at Classic is speaking in support of policies that the National Corn Growers Association (NCGA) should promote to benefit Iowa’s farmers. ICGA policy is set annually by grassroots farmer members from across the state. This starts with a membership survey and local roundtables then moves to the ICGA Annual Meeting in August where the state policies are finalized, voted on and then placed in the Iowa Corn Growers Association Policy Book. From there, national policy resolutions are to be brought forward for consideration during the NCGA Corn Congress. Commodity Classic is the conclusion of this policy development process. The Iowa resolutions passed by the delegate body include: USDA’s preparedness for wide scale animal disease outbreaks such as the High Path Avian Influenza (“bird flu”) that struck Iowa in 2015 Preserving current 100-year floodplain standards Continued support for involvement in the MAIZALL coalition, which addresses international market access

related to biotechnology and other agricultural technologies Mandatory point of sale disclosure of seed variety ID numbers for all hybrids “ICGA delegates presented resolutions and in turn voted on these and other resolutions and policies brought forward by NCGA and other states,” said Hemesath. “These policy positions set the framework for our federal legislative efforts and directly influence our direction for years to come.” The new NCGA policy document will be posted at www.iowacorn.org/ policy when it becomes available. For more information on upcoming

policy development meetings in your area, contact the Iowa Corn office at (515)225-9242 or email at corninfo@iowacorn.org. On Friday, U.S. Secretary of Agriculture Tom Vilsack met with ICGA President Bob Hemesath and ICPB President Mark Heckman to discuss several key issues impacting Iowa’s corn farmers. At the start of the meeting, Hemesath and Heckman thanked the Secretary for his many years of service and for addressing Commodity Classic attendees every year of his tenure. “We commended him for his work in championing issues important to Iowa’s farmers especially his support of ethanol,” said Hemesath.

You’ve worked too hard to leave things to chance.

The meeting focused on: Federal voluntary biotech labeling, the TransPacific Partnership (TPP) agreement, biotech market access, the Biofuels

Infrastructure Program, and transportation infrastructure. “We had a robust conversation on many topics that will directly

impact our ability to create demand for U.S. corn,” says Heckman. “We appreciate the Secretary taking time to hear from us on these issues.”

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