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Seminar: More ag events in the area

Budget: Online sources provide tools

■ Continued from page 3

■ Continued from page 11

Editor’s note: See this and upcoming Farm and Ranch issues for more in-depth

looks at 2018 Golden Triangle Cropping Seminar presentations.

Upcoming Ag Producer Events Feb. 7, Level 1 Master Gardener course, Rudyard • An eight-week, 16-hour, course on horticulture • Contact Shylea Wingard, 265-5481, ext. 233, or shylea.wingard@montana.edu; Jesse Fulbright, 759-5625 or jlf@montana.edu Feb. 13, Belle Pulses USA grower meeting, Hingham • Will cover pesticides (possibly one credit), sampling process, and a Q/A session • Contact Jayson Hauer, 397-3168 or jayson@bellepulsesusa.com Feb. 13, Rural & Urban Varmint Control workshop, Havre • How to control varmints in the home and yard — including mice, rats, skunks, raccoons, squirrels and snakes • Contact Jasmine Carbajal, 265-5481, ext. 235 Feb. 15, Golden Triangle Malt Barley meeting, Conrad • Topics include crop rotation, weed and nutrient management, barley breeding, fieldto-market sustainability and barley markets • Contact Pondera County Extension, 406-271-4054 or adriane.good@montana.edu by Feb. 9 Feb. 15, Madison Food Park informational meeting, Havre • North Central Stockgrowers Association has invited Todd Hanson, director of development, to discuss the proposed 3,018-acre food processing facility near Great Falls, address community concerns and highlight opportunities for beef, pork and poultry producers.

• 7 p.m., Hensler Auditorium at Montana State University-Northern.

a steep learning curve. These, she added, can be budgeted for.

—— Links to online sources to get started: MDA Sample Budgets • http://agr.mt.gov/Grants/new-2017montana-pulses-buyers-guide-crop-budgetprojection-comparisons-now-available • or just Google “Montana Crop Budget” NDSU Sample Budgets • http://ag.ndsu.edu/farmmanagement/ crop-budget-archive U of Idaho Sample Budgets

• http://uidaho.edu/cals/idaho-agbiz/ crop-budgets Estimating Farm Machinery Costs •http://extension.iastate.edu/agdm/ crops/html/a3-29.html Budget Building • http://ageconmt.com/winter-wheatproduction-budget/ Other Resources • http://msuextension.org/econtools/nitrogen/ • http://msuextension.org/aglease/ • http://msuextension.org/cropinsurance

Cropping Seminar, Extension programs come to Havre

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Pam Burke community@havredailynews.com The 2018 Golden Triangle Cropping Seminar marked the 10th year of this touring lecture series, but the first year it has included Havre as one of its stops, said local host Montana State University Hill County Extension Agent Shylea Wingard.

Each of the four agricultural presentations — on pulses, budgeting, pesticides, and grazing beef on cover crops — had between 60 and 79 participants, Wingard said, adding that the other seminar stops were in Fort Benton, Stanford, Shelby, Chester, Cut Bank, Conrad, Choteau and Great Falls Jan. 8-11.

“This is the first time that Hill County has gotten to participate in that,” she said, “and so I was really pleased that so many people came.”

After speaking earlier in the day at Fort Benton and Stanford, speakers Clain Jones, MSU Extension soil fertility specialist; Cecil Tharp, MSU Extension pesticide specialist; Kate Fuller, MSU Extension specialist in ag economics and economics; and Darrin Boss, MSU’s Northern Agricultural Research Center superintendent, started their presenHavre Daily News/Ryan Welch Agricultural producers listen to Montana State University Extension ag economist Kate Fuller speak Jan. 8 about market analysis and enterprise budget analysis at the 2018 Golden Triangle Cropping Seminar at the MSU Northern Agricultural Research Center south of Havre.

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www.havredailynews.com quality peas and lentils, is down under the current White House administration because the U.S. is now providing less foreign aid.

The role politics will play in the ag economy is a little unclear at this time, Fuller said, with a movement toward deglobalization, talk of ending or renegotiating the North American Free Trade Agreement, no indication of whether the Farm Bill will be finalized this year and other ag policy changes affecting outcomes.

WASDE, the USDA World Agricultural Supply and Demand Estimates monthly forecast for December wheat increased from $3.90 to between $4.50 and $4.70 per bushel, but live steers were down $10 per 100-weight, she said.

The Food and Agricultural Policy Research Institute, or FAPRI, which predicts longer term prices said that for the next three to five years wheat will stay below $5 per bushel and steer prices will remain flat for the next three, she said.

As always, weather is a wild card, she said. The prediction for the area is for a wetter winter with moisture continuing into spring and summer, which is predicted to be hot, and all this has potentially large implications on producers’ bottom line.

Armed with these number, Fuller said, producers can start developing an enterprise budget which will help analyze numbers, make estimates and help with future decisions.

An enterprise is something produced on the ag operation, she said, such as spring wheat, lentils, hay or livestock. Most opera-

FARM & RANCH tions have more than one, and this budgets allows for comparison of cost and benefit from each.

Fuller worked through a budget with attendees providing numbers, but she also said that Montana Department of Agriculture, North Dakota State University and University of Idaho have sample budgets, spreadsheets, cost calculators and other resources available.

MDA, she said, generally bases their budgets on the North Dakota State budgets.

Idaho’s budgets have some irrigated farming information which might not be useful for Montana producers, however, she added, they provide a lot of detail and give insight on assumptions.

One thing to keep in mind when looking at out-of-area resources is the feasibility of recommendations.

For example, Fuller said, mustard may be bringing in huge prices right now, but without contracts, getting the seed to market could up the expenses.

“The market is a huge barrier here, so you can look at these budgets and think something looks really good, but if you can’t get that crop to market then it’s not going to do you a whole lot of good,” she said.

The budget has three main categories — revenue, direct costs and indirect costs.

Budgets are a profit projection, Fuller said, so revenues are estimates based on research of the markets, forecasts and other influences, and costs are based on most likely numbers, especially with yields.

Producers looking at longterm budgeting

need to decide how realistic the numbers are, In the short run, producers can omit indirect costs if land and machinery already in place, focusing on return over direct costs, she said.

Direct costs, such as seed, fertilizer, chemical, fuel and crop insurance, can be gleaned from the previous year’s numbers or by searching out specific prices.

Indirect costs are a little trickier, she said, because they involve estimates and, often, formulas to calculate the numbers.

Indirect costs generally cannot be easily allocated to a specific enterprise, such as land, machinery and overhead.

If a producer’s bottom line shows that an enterprise is not making money, adjustments can be made, Fuller said, but the new numbers need to be plugged into the budget.

For example, a producer can change from wheat-fallow rotation to continuous cropping. Continuous crop rotation might bring lower yields — unless a pulse is planted that is likely to increase soil nitrogen over the long run — but it removes the costs for chemical fallowing. Continuous cropping also will likely increase operation costs on the machinery, but better utilize a machine that would otherwise be sitting idle and not contributing to its own payments. It also might require specialized equipment.

Plugging these numbers into budgets gives producers a way to compare the bottom line of changes like this.

Other decisions could be made about buying crop insurance or a new tractor to replace one that has had high repair costs

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or is not as efficient on diesel or machinery lubrication use per acre.

Tools such as NDSU’s formula for diesel cost — .044 gallons times horse-power hour — and lubrication cost — .15 times the fuel cost — help quantify these costs. But, Fuller said, producers need to also look at the opportunity cost of the machine purchase.

In other words, what is the next best thing that could have been done with the money used to buy machinery?

Maybe changes to overhead — including machinery housing, various insurances, vehicle licensing, utilities, tax preparation and office expenses — can be made, she said. Or maybe land is better leased or purchased. What affect does labor have on the budget? Does that improve production of an enterprise? Does it affect another enterprise or free up the producer for something else?

Any combination of these factors can be plugged into a budget spreadsheet, Fuller said, to provide “what if” scenarios to calculate breakeven points.

Enterprise budgets, on current production practices and on potential ones, can be compiled into a spreadsheet that offers comparison of enterprises and to give an overall idea of cash flow for the entire operation, she said, which is especially useful in diversified operations.

Diversification has some risk-reducing value, she said, and it might allow for more efficient use of machinery, land and structures, but there may be added expenses and

■ See Budget Page 12

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Production budgeting: Analyzing by the numbers Pam Burke community@havredailynews.com During the 2018 Golden Triangle Cropping Seminar Jan. 8 at the Northern Agricultural Research Center south of Havre, Kate Fuller, Montana State University Extension agriculture economist, talked to producers about the current ag market conditions and developing and using budgets by estimating production costs “The reason for doing budget analysis,” Fuller said, “is because we are seeing a pretty tight ag economy in Montana right now, so if you are a producer, you are pretty familiar with this state of affairs.”

A budget can help producers weigh their options and refine decisions for the coming year and help them make adjustments with changing circumstances, such as a drought that is worse than projected as happened in northeast Montana in 2017 or when, in 2016, the cattle market dropped from record highs to record lows.

In 2017, Fuller said, Montana saw a 32 percent reduction in wheat production overall, some of that was because producers planted less winter wheat and some because producers did not harvest at all. Winter wheat was down 41 percent, she said, and only 11 percent of Montana’s spring wheat was rated as good or excellent “when we typically see more than 50 percent, so this is a pretty sharp decline.”

“Economists really like to talk about supply and demand,” she added, “and given that we saw restricted supplies within the state, because we saw these pretty drastic reductions in our production, why didn’t prices rise in Montana? The

answer is that we are very reliant on the global market.”

Worldwide, about 25 percent of wheat is exported, she said. The U.S. exports 50 percent of its wheat, but Montana exports 75 percent.

Unfortunately, global wheat production is at record highs for the last several years, she said, so the struggling Montana wheat growers are dealing with a global wheat glut.

Pulses, she added, are dealing with a similar scenario.

The U.S. exports 50 to 75 percent of its pulses, but its biggest customer, India, is balking at accepting U.S. imports because of methyl bromide regulations, Fuller said.

Producers in the U.S. can’t fumigate with the chemical, which is banned in many countries, but India requires it. The government has allowed — for a fee — pulses and grains to be fumigated after they arrive in India, but this agreement is precarious. The last longterm agreement ended Dec. 31 and was renewed Jan. 2 for only six months.

India also has imposed a new pea import tax of 50 percent, Fuller said, and food aid, which has historically been a place for selling lower This composite table shows information from three sample enterprise budgets created by Kate Fuller, Montana State University Extension agricultural economist, during the 2018 Golden Triangle Cropping Seminars in January.

Data was contributed by producers attending the Havre, Cut Bank and Conrad presentations and, Fuller said, is intended as the product of an activity, not a reflection of researched costs.

www.havredailynews.com tations at 4 p.m. Jan. 8 at the Northern Ag Research Center south of Havre.

In response to drought and pulse crop nodulation problems some producers faced in 2017, Jones spoke on soil fertility and inoculation of pulse crops and nutrient management after both wet and dry years. He also covered managing nitrate in forages during years with variable precipitation and included data on soil acidification, which, he said, has become more of an issue in Chouteau and Cascade counties.

Kate Fuller looked at current market conditions and how they will impact producer profitability. She also walked producers through developing an enterprise budget and performing a budget analysis. Fuller shared available estimates and online tools to help estimate and benchmark cost of production, for both current and potential farm production decisions.

Boss shared results from his four years of research on cover crop grazing completed with the cattle at the Research Center.

He talked about management recommendations and an economic analysis, specific to the Golden Triangle area, focused on integrating beef cattle into cover crops.

With numerous reports of producers spraying the same field multiple times with limited success in 2017, these growers were left asking why their pesticides weren’t working. Tharp addressed the issue and talked about how producers can most effectively utilize their pesticides.

He covered common problems that occur when applying pesticides, focusing on the importance of calibrating sprayers, under-

FARM & RANCH standing active ingredients, understanding the product label and the impacts of environmental conditions on spray application.

Tharp’s presentation provided one credit for the 45 private applicator license holders in attendance, Wingard said.

She added that she decided to try the Cropping Seminar this year in place of the Extension Office’s Cabin Fever event, after getting input on what producers like, and wanted to see, and looking at the downward participation trend for Cabin Fever.

She said she is pleased with the increase in participation and is already planning to get Havre in the Cropping Seminar rotation again next year. An added benefit of this, she said, is that she can bring in the specialists she would be consulting or sending producers to with their questions anyway.

This gives everyone the chance to put a face to names and start a rapport.

Plus, she said, this brings the lecturers in at a reduced rate, leaving money in the budget for other programs, including more stand-alone programs such as those her office will be providing this year. Some of those program topics include family and consumer science, master gardening and rodent pest-management, along with the grazing seminar held Jan. 11 and a pulse crop seminar Feb. 5, which offerred to PAT credits.

“I think we’re going to be doing a lot of things to try to address needs,” she said.

“And if people have a special want or need or interest, by all means call us, let us know at the Extension Office, and we’ll try to put something together.”

Private applicator licensing One change Wingard is already planning for the 2019 seminar is to include an additional class that counts toward the required six credits for renewing ag chemical applicator licensing. She said her bid this year to get the pulse fertilization and inoculation presentation approved didn’t go through so only the one class, “Why Didn’t My Pesticide Work?” with Tharp, provided credits to attendees with licenses.

Wingard said that 45 attendees signed up for credits for the pesticide presentation and they, along with other chemical license holders in this region have until the end of 2020 to get their required six educational credits to keep their license current.

If enough people express interest in more class credits, she added, she will work on getting more, including bringing Tharp back, but unlike the Cropping Seminar, these classes might require a fee to help cover the presenter’s travel costs.

People who are good at independent s t u d y, W i n g a rd s a i d, c a n go to t h e Extension Office and take a 50-question open-book test for $20. They must pass with at least a 70 percent score. The study book and addendum are available at the office, she said.

New applicants and those who wish to get credits through training can attend a free, seven-hour training course in Harlem March 6. The course starts at 8 a.m. at the FBIC Transportation Building, at 258 Agency Main St. Anyone wanting to attend can contact Amy Bowser at amybowser@ montana.edu or 406-994-5178.

——

■ See Seminar Page 12

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February2018 2018 February

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When to Prune Your Trees and Shrubs

REALLY do for you?

We Have . . . A Full Agronomy StaďŹ&#x20AC; Available

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THERESA JOHNSON / FOR FARM & RANCH

Nashua photographer Theresa Johnson snapped this snowy owl south of Nashua last month.

The Month in Weather BRANDON BIGELBACH FOR FARM & RANCH

January was a month highlighted by, in general, below-normal temperatures and above-normal precipitation. The pattern we experienced makes sense since the El NiĂąo Southern Oscillation is currently in the La NiĂąa phase, which on average is analogous to a colder and wetter winter for the upper Midwest of the U.S. Thirteen of the days of January saw at least a trace of reported precipitation, though only one system around mid-month produced the vast majority of the liquid equivalent precipitation and snowfall reported for the month. For much of the month, high pressure over the region dominated, lending to 21 of the days of the month experiencing maximum winds below 20 mph and only three days with winds greater than 25 mph. The highest sustained wind and wind gust were both reported on Jan. 30 with 33 mph sustained winds and gusts to 44 mph.

As of press date, per the National Weather Service in Glasgow, the highest observed temperature for the month was 44 degrees on

Jan. 30, and the lowest was -31 degrees on both Jan. 1 and 2. The total liquid precipitation reported at Glasgow was 0.37â&#x20AC;?, which was merely 0.01â&#x20AC;? above normal. For the month, 7.2â&#x20AC;? of snowfall was also reported. Over a 24-hour period, the greatest precipitation total was 0.31â&#x20AC;?, which occurred on Jan. 10.

The overall mean temperature for the month was approximately 10 degrees, which was approximately 3.5 degrees below normal.

The latest U.S. Drought Monitor was released on Jan. 25. As January was a relatively active month with generally normal precipitation, a vast improvement in drought conditions across the state have been noted, when compared to December. Less than 50 percent of the state is now classiďŹ ed as at least Abnormally Dry, and just over 25 percent of the state is in Moderate Drought or worse conditions. Much of the northeast is still experiencing Severe Drought conditions, but there are still marked improvements in conditions, especially across the south. Areas along and south of the Yellowstone River, including parts of Richland, Dawson, Prairie and Wibaux counties, have all been decreased to Abnormally Dry category.

Late winter is the optimum time to prune most tree and shrub species. The fact that the plant is dormant helps to improve the healing process and the cold weather keeps plant disease pathogens from entering the open wounds until the plant can heal itself. Dead and diseased branches can be removed at any time of the year.

Flowering shrubs should not be pruned in the winter because this will remove all the ďŹ&#x201A;ower buds and results in reduced ďŹ&#x201A;owering in the spring. The next yearâ&#x20AC;&#x2122;s ďŹ&#x201A;ower buds are formed in mid-summer so pruning should be done immediately following the ďŹ&#x201A;ower display. Trees and shrubs that should be pruned after ďŹ&#x201A;owering include lilac, cherry, dogwood, crabapple, ďŹ&#x201A;owering almond, horse chestnut and serviceberry. It wonâ&#x20AC;&#x2122;t hurt the tree/shrub to prune it in the winter, but you will be disappointed in the spring ďŹ&#x201A;ower production for that year.

If you must prune during the growing season wait until the buds break, the leaves are fully formed, and have turned dark green. When the tree or shrub is actively growing energy resources are at their lowest and growing tissues are easily damaged so it is best not to prune during bud swell.

Late summer pruning may stimulate new growth which will be unable to survive the winter. Do not remove more than 10% of the growth when pruning in the summer months as this will slow root growth and consequently slow top growth.

Start your pruning cuts by ďŹ rst cutting out any dead, broken, or crossing branches.

Try to avoid cutting large branches off the tree as this increases the likelihood of injury during pruning, increases healing time, and can leave the tree open to diseases.

Branches that are greater than two inches in diameter should be pruned using the threecut method (Figure 1). A small undercut is made on the bottom of the branch approximately 6 - 12 inches from the branch collar. The second cut is made on the top of the branch at or just beyond the ďŹ rst cut.

This reduces the likelihood that the heavy branch will break, tear, and possibly injure the tree (Figure 2). The third cut removes the remaining six inches of branch from the branch collar.

Figure 1. The proper three cut method for large branch trimming (Toby Day).

Figure 2. An improper cut caused the heavy branch to break and tear the trunk (Toby Day).

A question that often is asked in the Extension ofďŹ ce is do I need to put tar or a tree wound sealer or healing agent on the cut? Research has shown that it is better to leave the cut untreated because the use of tar or other wound healing agent can actually trap disease pathogens in the tree and accelerate rot. The tree will naturally develop a scab much like humans do when they are wounded.

Ornamental trees and fruit trees are pruned differently because they each have unique functions. With ornamental trees the goal is to provide shade so pruning is aimed at forming a nice canopy with main branches spaced spirally along a single trunk with a central leader. Fruit trees on the other hand are designed to provide

fruit so they are shaped with a more open canopy with no central main stem and a more rounded appearance.

Evergreen trees rarely need pruning.

Pine and ďŹ r trees should never be pruned unless they have a broken or diseased branch because once the limb is removed it will not be replaced by new growth. To limit growth on pines such as Mugo pine, twisting off the new spring growth (called candeling) is the best method of stopping further growth of the plant (Figure 3).

Spruce may be shaped by light pruning, but be careful to avoid destroying the natural shape of the tree unless thatâ&#x20AC;&#x2122;s what you were going for.

Figure 3: New growth that resembles candles can be twisted off and discarded to limit growth of pine species such as Mugo

or Austrian pine. Once a pine branch is removed it will not grow back. (Photo: Toby Day) It is easiest to begin pruning your trees when they are small and keep maintaining them throughout their life. Never prune more than one third of the tree annually as this may result in delayed growth and injury.

Be very cautious of hiring someone to â&#x20AC;&#x153;trimâ&#x20AC;? your trees. Over pruning, topping, and excessive removal of large branches can actually promote weak wood and dangerous situations. Always ask if the person is a certiďŹ ed arborist and ask for credentials and references.

For more information on pruning please contact your local MSU Extension ofďŹ ce at 406-228-6241.

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Dr. Goetting's Estate Planning Class ROUBIE YOUNKIN, MSU EXTENSION FOR FARM & RANCH Marsha Goetting, MSU Extension Family Economics specialist, consistently draws a crowd when talking about estate planning in Montana. She has presented over 800 workshops reaching over 25,000 Montanans with ďŹ nancial and estate planning information. She has also authored over 75 MontGuides and bulletins and has received national, regional, and state awards for her ďŹ nancial management and estate planning programs.

Dr. Goettingâ&#x20AC;&#x2122;s presentation on Wills and Trusts to over 60 Valley County residents was just the tip of the iceberg regarding estate planning information. Her opening statement â&#x20AC;&#x153;Dying without a will in Montana, who receives your property?â&#x20AC;? made everyone think about their own situation and if the plan they have in place was adequate.

While most people manage their property meticulously while they are alive, many have not made to provision for it after they have passed away.

Because something must be done with your real and personal property after your death, the Montana Legislature has provided a method for dividing it among heirs if you fail to make other arrangements.

The original statutes have been substantially revised to recognize the increasing portion of the population who have been married more than once and have stepchildren and children by previous marriages.

Under certain conditions, Montana law also provides for the decedentâ&#x20AC;&#x2122;s parents to receive some property. The property of a Montana resident who dies without a valid

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will passes by the pattern outlined in the following table. However, transfer is also affected by the way property is titled. For example, property titled in joint tenancy with right of survivorship passes to the surviving joint tenants not by Montanaâ&#x20AC;&#x2122;s intestacy statutes. (Dying Without a Will in Montana: Who Receives Your Property, MT198908HR Revised 9/17) Participants in the estate planning workshop were then introduced to numerous hypothetical situations where they used interactive â&#x20AC;&#x153;clickersâ&#x20AC;? to record their best guess as to how property would be distributed. They were encouraged to ask questions and also present scenarios for Dr. Goetting to unweave and clarify based on Montana law.

She concluded her presentation with the following statement taken from her Extension MontGuide, â&#x20AC;&#x153;The way Montana law provides for the distribution of property in the absence of a written will may be satisfactory in some instances. However, it does not take into account individual needs and abilities, nor the requirements of various family members. Neither will the law take steps to conserve and protect estates.

Furthermore, even though the Montana intestate statutes may seem to provide exactly the distributional scheme you now desire, laws can be changed. Would the Montana intestate statutes distribute property according to your wishes and your situation? If it does not, then you should have a written will drafted or make other provisions for transferring property after your death."

For more information from MSU Extension regarding Estate Planning please visit https://store.msuextension.org/ or contact your local County Extension OfďŹ ce.

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MonDak Pulse Day SHELLEY MILLS, MSU EXTENSION FOR FARM & RANCH Mark your calendars to attend the 18th Annual MonDak Pulse Day. It will take place on Tuesday, February 13 at the Elks Club in Wolf Point, MT. Registration for the event will begin at 8:30 a.m. Mountain or 9:30 a.m. Central time. Registration fee will be $20 per person, payable at the door.

The MonDak Pulse Day has continued to be a successful local area program to learn about the latest on the production, marketing, and utilization of pulse crops. This area has become a hotspot for pulse crop acreage that is proďŹ table, good for soil nutrient proďŹ les, and close to expanding markets.

To begin the program, Clain JonesMontana State University Extension Soil Fertility Specialist will discuss pulse crop fertilizer and micronutrient needs. Next featured speaker also from MSU in the Agriculture Economics Department, will be Anton Bekkerman to give a synopsis of pulse markets.

Before and after lunch, Ed Davis from the LRES Department at MSU will give a talk about weed management issues and also discuss research that Brian Jenks from

the North Dakota State University Minot Research and Extension Center are conducting. Brian Gion, marketing director from the Northern Pulse Growers Association, and sponsor, will give a market update.

Also on the agenda will be Eric Bartsch from AGT Foods USA. He will talk about pulses in the food market. Finally, newly hired Kevin McPhee MSU Pulse Breeder, will give a pulse breeding research update.

An expanded trade show being coordinated by the Northern Pulse Growers Association will also be held in conjunction with Pulse Day with 25 to 30 exhibitors expected for the show. Pesticide Applicator credits and CEU will be available.

Door prize drawings will be held throughout the day with the program expected to conclude around 3:30 p.m.

MonDak Pulse Day is open to the public and is organized by MSU & NDSU Extension Agents in northeastern Montana and northwestern North Dakota with the program annually rotating between Montana and North Dakota.

For more information on this Pulse Day, please contact Wendy Becker at the MSUFort Peck Reservation Extension OfďŹ ce at 406-768-3431.

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Glasgow Stockyards, Inc. Linda & Mark Nielsen, Owners Iva Murch, Manager 263-7529 Dean Barnes, Yard Manager 263-1175 Ed Hinton, Auctioneer 783-7285

February, March & April 2018 Schedule

February 2018 Thursday

SERVING AREA â&#x153;Ż LIVESTOCK PRODUCERS FOR 72 YEARS! 1946 - 2018

March 2018 (cont.)

Thursday

UI 8JUULPQQ "OHVT "VDUJPO Monthly Stock Cow & Bred Heifer Auction & All Class Cattle Auction

22

Feeder Special & All Class Cattle Auction

15

Feeder Special & All Class Cattle Auction

29

22

All Class Cattle Auction

8PPEMBOE 'BSNT .POUBOB "OHVT 4BMF Fahlgren Angus Production Auction BOE (JCCT 3FE "OHVT 1SPEVDUJPO Auction & All Class Cattle Auction

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March 2018 Thursday

April 2018 Thursday

1

Infinity Angus Bull & Female Production Auction with guest consignor Pankratz Angus, Stock Cow & Bred Heifer Auction & All Class Cattle Auction

8

March Feeder Special & All Class Cattle Auction

Saturday

All Class Cattle Auction

14

Bill Omvig Estate Auction

19

.D3BF T #JH %SZ "OHVT 1SPEVDUJPO "VDUJPO 3FQMBDFNFOU )FJGFS BOE Feeder Special & All Class Cattle Auction

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NEWTON MOTORS, INC.

MARY KATE TESKE / FOR FARM & RANCH

Retired Judge Russell Fagg visited Glasgow's Farm Equipment Sales on Jan. 29. Fagg is running for U.S. Senate, as he told the Glasgow audience, and he'd like the chance to take on incumbent Senator Jon Tester. The Republican candidate made stops from Malta to Glendive during this leg of an eastern Montana tour.

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Robin Cassel helps Sophie Larson at a recent MSU Extention event. See full story on Page 6.

440 Highway 2 West â&#x20AC;˘ Glasgow â&#x20AC;˘ Across from the Fairgrounds 406-228-9325 â&#x20AC;˘ 406-228-4381 â&#x20AC;˘ 1-800-255-1472 Family owned by the Newton Boys!

Rent A Car Come in and see Doug, Terry, or Ted!

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Valley 4-H Winter Fun Day ROUBIE YOUNKIN, MSU EXTENSION FOR FARM & RANCH Nothing describes FUN more clearly than kids together working on handâ&#x20AC;&#x2122;s on projects.

Learning by Doing, the 4-H Slogan, was the consistent theme of this busy 4-H project day. Led by adult and teen leaders, 4-H members had the opportunity to explore a

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Winter Classes CONTINUED FROM PAGE 6

variety of projects and interests with their peers.

4-H recognizes that learning is something that you do with your whole self, for your whole life, with your family, school, and your community. Learning involves how youth feel, how they perceive themselves, what they do and who they are doing it with.

See WINTER CLASSES Page 7

Puppy Love and Photography

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Linden Holt (l), John McColly (center) and Peyton Smith (bottom-right) make sausage under MSU Extension supervision during a recent 4-H Winter Fun Day.

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Glasgow's Thompson & Sons Trucking helped prepare the site for the 2018 Northeastern Polar Plunge at Nelson Reservoir on Jan. 27.

Learning is an integrated process where the action, educator and peers all play a role in skill development. 4-H incorporates the experiential learning process in all educational activities. Through a series of intentional processes, the young person is guided to articulate and reďŹ&#x201A;ect on the learning process so that they learn how to direct both their learning and growth.

4-H learning is an active process where young people gain understanding, skills, dispositions, identities and new habits of mind through hands-on experiences Valley County 4-H members became involved in the experiential learning process December 29 at the Valley County 4-H Winter Fun Day. Project workshops included: Advancing your Livestock Project by making sausage hosted by MSU Extension Agent Wendy Becker.

Make your Own Hydraulic Arm and Squishy Circuits led by teen leaders Cordell Younkin and Elise Strommen, Science Sleuths, (A Valley County Community Foundation funded project).

Fleece Neck Warmers with instruction from Robin Cassel.

Livestock Judging by 4-H Alumni Chadaya Christensen and Cache Younkin Lunch provided by cooking members through their workshop Hot Lava Cake and Tacos.

Cloverbuds hosted by LaMae Lacock, Brooke Westby and Bethany Lacock.

Fidget Blankets led by leader Jody Simpson.

To contact Valley County 4-H, call Roubie Younkn at 406-228-6241.

MARY KATE TESKE / FOR FARM & RANCH

Dr. Chelsie McAllister brings a little cheer to an adorable St. Bernard puppy receiving a checkup at Valley Veterinary Clinic of Glasgow on Jan. 31. Photographer Mary Kate Teske has pictures available at Wheatgrass Arts & Galley. The Farm & Ranch contributor is the Wheatgrass Gallery Artist of the Month. Her work will be up for all of February. The gallery is located at 241 2nd Ave. S. in downtown Glasgow. Valley Veterinary Clinic of Glasgow can be reached at 406-228-2437.

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Cloverbuds Kade Strommen (l) and Bentley Boreson (r) show off their gingerbread stick men.

SEAN R. HEAVEY / FOR FARM & RANCH

Valley County Sheriff's Office Chief Deputy Alex Esteves (center) contemplates his plunge with the Glasgow Police Department's Shelly Ramsey on Jan. 27. According to Esteves, the event helped raise over $12,000.

SEAN R. HEAVEY / FOR FARM & RANCH

The number of "plungers" grows as a crowd looks on at Nelson Reservoir. The Northeastern Polar Plunge is a benefit for Special Olympics Montana.

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Dr. Goetting's Estate Planning Class ROUBIE YOUNKIN, MSU EXTENSION FOR FARM & RANCH Marsha Goetting, MSU Extension Family Economics specialist, consistently draws a crowd when talking about estate planning in Montana. She has presented over 800 workshops reaching over 25,000 Montanans with ďŹ nancial and estate planning information. She has also authored over 75 MontGuides and bulletins and has received national, regional, and state awards for her ďŹ nancial management and estate planning programs.

Dr. Goettingâ&#x20AC;&#x2122;s presentation on Wills and Trusts to over 60 Valley County residents was just the tip of the iceberg regarding estate planning information. Her opening statement â&#x20AC;&#x153;Dying without a will in Montana, who receives your property?â&#x20AC;? made everyone think about their own situation and if the plan they have in place was adequate.

While most people manage their property meticulously while they are alive, many have not made to provision for it after they have passed away.

Because something must be done with your real and personal property after your death, the Montana Legislature has provided a method for dividing it among heirs if you fail to make other arrangements.

The original statutes have been substantially revised to recognize the increasing portion of the population who have been married more than once and have stepchildren and children by previous marriages.

Under certain conditions, Montana law also provides for the decedentâ&#x20AC;&#x2122;s parents to receive some property. The property of a Montana resident who dies without a valid

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will passes by the pattern outlined in the following table. However, transfer is also affected by the way property is titled. For example, property titled in joint tenancy with right of survivorship passes to the surviving joint tenants not by Montanaâ&#x20AC;&#x2122;s intestacy statutes. (Dying Without a Will in Montana: Who Receives Your Property, MT198908HR Revised 9/17) Participants in the estate planning workshop were then introduced to numerous hypothetical situations where they used interactive â&#x20AC;&#x153;clickersâ&#x20AC;? to record their best guess as to how property would be distributed. They were encouraged to ask questions and also present scenarios for Dr. Goetting to unweave and clarify based on Montana law.

She concluded her presentation with the following statement taken from her Extension MontGuide, â&#x20AC;&#x153;The way Montana law provides for the distribution of property in the absence of a written will may be satisfactory in some instances. However, it does not take into account individual needs and abilities, nor the requirements of various family members. Neither will the law take steps to conserve and protect estates.

Furthermore, even though the Montana intestate statutes may seem to provide exactly the distributional scheme you now desire, laws can be changed. Would the Montana intestate statutes distribute property according to your wishes and your situation? If it does not, then you should have a written will drafted or make other provisions for transferring property after your death."

For more information from MSU Extension regarding Estate Planning please visit https://store.msuextension.org/ or contact your local County Extension OfďŹ ce.

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MonDak Pulse Day SHELLEY MILLS, MSU EXTENSION FOR FARM & RANCH Mark your calendars to attend the 18th Annual MonDak Pulse Day. It will take place on Tuesday, February 13 at the Elks Club in Wolf Point, MT. Registration for the event will begin at 8:30 a.m. Mountain or 9:30 a.m. Central time. Registration fee will be $20 per person, payable at the door.

The MonDak Pulse Day has continued to be a successful local area program to learn about the latest on the production, marketing, and utilization of pulse crops. This area has become a hotspot for pulse crop acreage that is proďŹ table, good for soil nutrient proďŹ les, and close to expanding markets.

To begin the program, Clain JonesMontana State University Extension Soil Fertility Specialist will discuss pulse crop fertilizer and micronutrient needs. Next featured speaker also from MSU in the Agriculture Economics Department, will be Anton Bekkerman to give a synopsis of pulse markets.

Before and after lunch, Ed Davis from the LRES Department at MSU will give a talk about weed management issues and also discuss research that Brian Jenks from

the North Dakota State University Minot Research and Extension Center are conducting. Brian Gion, marketing director from the Northern Pulse Growers Association, and sponsor, will give a market update.

Also on the agenda will be Eric Bartsch from AGT Foods USA. He will talk about pulses in the food market. Finally, newly hired Kevin McPhee MSU Pulse Breeder, will give a pulse breeding research update.

An expanded trade show being coordinated by the Northern Pulse Growers Association will also be held in conjunction with Pulse Day with 25 to 30 exhibitors expected for the show. Pesticide Applicator credits and CEU will be available.

Door prize drawings will be held throughout the day with the program expected to conclude around 3:30 p.m.

MonDak Pulse Day is open to the public and is organized by MSU & NDSU Extension Agents in northeastern Montana and northwestern North Dakota with the program annually rotating between Montana and North Dakota.

For more information on this Pulse Day, please contact Wendy Becker at the MSUFort Peck Reservation Extension OfďŹ ce at 406-768-3431.

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Glasgow Stockyards, Inc. Linda & Mark Nielsen, Owners Iva Murch, Manager 263-7529 Dean Barnes, Yard Manager 263-1175 Ed Hinton, Auctioneer 783-7285

February, March & April 2018 Schedule

February 2018 Thursday

SERVING AREA â&#x153;Ż LIVESTOCK PRODUCERS FOR 72 YEARS! 1946 - 2018

March 2018 (cont.)

Thursday

UI 8JUULPQQ "OHVT "VDUJPO Monthly Stock Cow & Bred Heifer Auction & All Class Cattle Auction

22

Feeder Special & All Class Cattle Auction

15

Feeder Special & All Class Cattle Auction

29

22

All Class Cattle Auction

8PPEMBOE 'BSNT .POUBOB "OHVT 4BMF Fahlgren Angus Production Auction BOE (JCCT 3FE "OHVT 1SPEVDUJPO Auction & All Class Cattle Auction

8

March 2018 Thursday

April 2018 Thursday

1

Infinity Angus Bull & Female Production Auction with guest consignor Pankratz Angus, Stock Cow & Bred Heifer Auction & All Class Cattle Auction

8

March Feeder Special & All Class Cattle Auction

Saturday

All Class Cattle Auction

14

Bill Omvig Estate Auction

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.D3BF T #JH %SZ "OHVT 1SPEVDUJPO "VDUJPO 3FQMBDFNFOU )FJGFS BOE Feeder Special & All Class Cattle Auction

15

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YOUâ&#x20AC;&#x2122;RE READING HI-LINE FARM & RANCH THE AG MONTHLY FOR NORTHEAST & NORTH CENTRAL MONTANA

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MARY KATE TESKE / FOR FARM & RANCH

Retired Judge Russell Fagg visited Glasgow's Farm Equipment Sales on Jan. 29. Fagg is running for U.S. Senate, as he told the Glasgow audience, and he'd like the chance to take on incumbent Senator Jon Tester. The Republican candidate made stops from Malta to Glendive during this leg of an eastern Montana tour.

NEW & USED TRUCKS AND CARS

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Robin Cassel helps Sophie Larson at a recent MSU Extention event. See full story on Page 6.

440 Highway 2 West â&#x20AC;˘ Glasgow â&#x20AC;˘ Across from the Fairgrounds 406-228-9325 â&#x20AC;˘ 406-228-4381 â&#x20AC;˘ 1-800-255-1472 Family owned by the Newton Boys!

Rent A Car Come in and see Doug, Terry, or Ted!

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When to Prune Your Trees and Shrubs

REALLY do for you?

We Have . . . A Full Agronomy StaďŹ&#x20AC; Available

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THERESA JOHNSON / FOR FARM & RANCH

Nashua photographer Theresa Johnson snapped this snowy owl south of Nashua last month.

The Month in Weather BRANDON BIGELBACH FOR FARM & RANCH

January was a month highlighted by, in general, below-normal temperatures and above-normal precipitation. The pattern we experienced makes sense since the El NiĂąo Southern Oscillation is currently in the La NiĂąa phase, which on average is analogous to a colder and wetter winter for the upper Midwest of the U.S. Thirteen of the days of January saw at least a trace of reported precipitation, though only one system around mid-month produced the vast majority of the liquid equivalent precipitation and snowfall reported for the month. For much of the month, high pressure over the region dominated, lending to 21 of the days of the month experiencing maximum winds below 20 mph and only three days with winds greater than 25 mph. The highest sustained wind and wind gust were both reported on Jan. 30 with 33 mph sustained winds and gusts to 44 mph.

As of press date, per the National Weather Service in Glasgow, the highest observed temperature for the month was 44 degrees on

Jan. 30, and the lowest was -31 degrees on both Jan. 1 and 2. The total liquid precipitation reported at Glasgow was 0.37â&#x20AC;?, which was merely 0.01â&#x20AC;? above normal. For the month, 7.2â&#x20AC;? of snowfall was also reported. Over a 24-hour period, the greatest precipitation total was 0.31â&#x20AC;?, which occurred on Jan. 10.

The overall mean temperature for the month was approximately 10 degrees, which was approximately 3.5 degrees below normal.

The latest U.S. Drought Monitor was released on Jan. 25. As January was a relatively active month with generally normal precipitation, a vast improvement in drought conditions across the state have been noted, when compared to December. Less than 50 percent of the state is now classiďŹ ed as at least Abnormally Dry, and just over 25 percent of the state is in Moderate Drought or worse conditions. Much of the northeast is still experiencing Severe Drought conditions, but there are still marked improvements in conditions, especially across the south. Areas along and south of the Yellowstone River, including parts of Richland, Dawson, Prairie and Wibaux counties, have all been decreased to Abnormally Dry category.

Late winter is the optimum time to prune most tree and shrub species. The fact that the plant is dormant helps to improve the healing process and the cold weather keeps plant disease pathogens from entering the open wounds until the plant can heal itself. Dead and diseased branches can be removed at any time of the year.

Flowering shrubs should not be pruned in the winter because this will remove all the ďŹ&#x201A;ower buds and results in reduced ďŹ&#x201A;owering in the spring. The next yearâ&#x20AC;&#x2122;s ďŹ&#x201A;ower buds are formed in mid-summer so pruning should be done immediately following the ďŹ&#x201A;ower display. Trees and shrubs that should be pruned after ďŹ&#x201A;owering include lilac, cherry, dogwood, crabapple, ďŹ&#x201A;owering almond, horse chestnut and serviceberry. It wonâ&#x20AC;&#x2122;t hurt the tree/shrub to prune it in the winter, but you will be disappointed in the spring ďŹ&#x201A;ower production for that year.

If you must prune during the growing season wait until the buds break, the leaves are fully formed, and have turned dark green. When the tree or shrub is actively growing energy resources are at their lowest and growing tissues are easily damaged so it is best not to prune during bud swell.

Late summer pruning may stimulate new growth which will be unable to survive the winter. Do not remove more than 10% of the growth when pruning in the summer months as this will slow root growth and consequently slow top growth.

Start your pruning cuts by ďŹ rst cutting out any dead, broken, or crossing branches.

Try to avoid cutting large branches off the tree as this increases the likelihood of injury during pruning, increases healing time, and can leave the tree open to diseases.

Branches that are greater than two inches in diameter should be pruned using the threecut method (Figure 1). A small undercut is made on the bottom of the branch approximately 6 - 12 inches from the branch collar. The second cut is made on the top of the branch at or just beyond the ďŹ rst cut.

This reduces the likelihood that the heavy branch will break, tear, and possibly injure the tree (Figure 2). The third cut removes the remaining six inches of branch from the branch collar.

Figure 1. The proper three cut method for large branch trimming (Toby Day).

Figure 2. An improper cut caused the heavy branch to break and tear the trunk (Toby Day).

A question that often is asked in the Extension ofďŹ ce is do I need to put tar or a tree wound sealer or healing agent on the cut? Research has shown that it is better to leave the cut untreated because the use of tar or other wound healing agent can actually trap disease pathogens in the tree and accelerate rot. The tree will naturally develop a scab much like humans do when they are wounded.

Ornamental trees and fruit trees are pruned differently because they each have unique functions. With ornamental trees the goal is to provide shade so pruning is aimed at forming a nice canopy with main branches spaced spirally along a single trunk with a central leader. Fruit trees on the other hand are designed to provide

fruit so they are shaped with a more open canopy with no central main stem and a more rounded appearance.

Evergreen trees rarely need pruning.

Pine and ďŹ r trees should never be pruned unless they have a broken or diseased branch because once the limb is removed it will not be replaced by new growth. To limit growth on pines such as Mugo pine, twisting off the new spring growth (called candeling) is the best method of stopping further growth of the plant (Figure 3).

Spruce may be shaped by light pruning, but be careful to avoid destroying the natural shape of the tree unless thatâ&#x20AC;&#x2122;s what you were going for.

Figure 3: New growth that resembles candles can be twisted off and discarded to limit growth of pine species such as Mugo

or Austrian pine. Once a pine branch is removed it will not grow back. (Photo: Toby Day) It is easiest to begin pruning your trees when they are small and keep maintaining them throughout their life. Never prune more than one third of the tree annually as this may result in delayed growth and injury.

Be very cautious of hiring someone to â&#x20AC;&#x153;trimâ&#x20AC;? your trees. Over pruning, topping, and excessive removal of large branches can actually promote weak wood and dangerous situations. Always ask if the person is a certiďŹ ed arborist and ask for credentials and references.

For more information on pruning please contact your local MSU Extension ofďŹ ce at 406-228-6241.

Cathryn Reitler, Fine Artist

Celebrate your legacy; your dedication to a lifestyle, through an heirloom commissioned artwork.

Glasgow, MT 406-671-0659 www.cathrynreitler.com

Figures 1-3 correspond to in-story text. See above.

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Contact the artist now to reserve a place for an art order in the coming year.

All content will be considered.

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Production budgeting: Analyzing by the numbers Pam Burke community@havredailynews.com During the 2018 Golden Triangle Cropping Seminar Jan. 8 at the Northern Agricultural Research Center south of Havre, Kate Fuller, Montana State University Extension agriculture economist, talked to producers about the current ag market conditions and developing and using budgets by estimating production costs “The reason for doing budget analysis,” Fuller said, “is because we are seeing a pretty tight ag economy in Montana right now, so if you are a producer, you are pretty familiar with this state of affairs.”

A budget can help producers weigh their options and refine decisions for the coming year and help them make adjustments with changing circumstances, such as a drought that is worse than projected as happened in northeast Montana in 2017 or when, in 2016, the cattle market dropped from record highs to record lows.

In 2017, Fuller said, Montana saw a 32 percent reduction in wheat production overall, some of that was because producers planted less winter wheat and some because producers did not harvest at all. Winter wheat was down 41 percent, she said, and only 11 percent of Montana’s spring wheat was rated as good or excellent “when we typically see more than 50 percent, so this is a pretty sharp decline.”

“Economists really like to talk about supply and demand,” she added, “and given that we saw restricted supplies within the state, because we saw these pretty drastic reductions in our production, why didn’t prices rise in Montana? The

answer is that we are very reliant on the global market.”

Worldwide, about 25 percent of wheat is exported, she said. The U.S. exports 50 percent of its wheat, but Montana exports 75 percent.

Unfortunately, global wheat production is at record highs for the last several years, she said, so the struggling Montana wheat growers are dealing with a global wheat glut.

Pulses, she added, are dealing with a similar scenario.

The U.S. exports 50 to 75 percent of its pulses, but its biggest customer, India, is balking at accepting U.S. imports because of methyl bromide regulations, Fuller said.

Producers in the U.S. can’t fumigate with the chemical, which is banned in many countries, but India requires it. The government has allowed — for a fee — pulses and grains to be fumigated after they arrive in India, but this agreement is precarious. The last longterm agreement ended Dec. 31 and was renewed Jan. 2 for only six months.

India also has imposed a new pea import tax of 50 percent, Fuller said, and food aid, which has historically been a place for selling lower This composite table shows information from three sample enterprise budgets created by Kate Fuller, Montana State University Extension agricultural economist, during the 2018 Golden Triangle Cropping Seminars in January.

Data was contributed by producers attending the Havre, Cut Bank and Conrad presentations and, Fuller said, is intended as the product of an activity, not a reflection of researched costs.

www.havredailynews.com tations at 4 p.m. Jan. 8 at the Northern Ag Research Center south of Havre.

In response to drought and pulse crop nodulation problems some producers faced in 2017, Jones spoke on soil fertility and inoculation of pulse crops and nutrient management after both wet and dry years. He also covered managing nitrate in forages during years with variable precipitation and included data on soil acidification, which, he said, has become more of an issue in Chouteau and Cascade counties.

Kate Fuller looked at current market conditions and how they will impact producer profitability. She also walked producers through developing an enterprise budget and performing a budget analysis. Fuller shared available estimates and online tools to help estimate and benchmark cost of production, for both current and potential farm production decisions.

Boss shared results from his four years of research on cover crop grazing completed with the cattle at the Research Center.

He talked about management recommendations and an economic analysis, specific to the Golden Triangle area, focused on integrating beef cattle into cover crops.

With numerous reports of producers spraying the same field multiple times with limited success in 2017, these growers were left asking why their pesticides weren’t working. Tharp addressed the issue and talked about how producers can most effectively utilize their pesticides.

He covered common problems that occur when applying pesticides, focusing on the importance of calibrating sprayers, under-

FARM & RANCH standing active ingredients, understanding the product label and the impacts of environmental conditions on spray application.

Tharp’s presentation provided one credit for the 45 private applicator license holders in attendance, Wingard said.

She added that she decided to try the Cropping Seminar this year in place of the Extension Office’s Cabin Fever event, after getting input on what producers like, and wanted to see, and looking at the downward participation trend for Cabin Fever.

She said she is pleased with the increase in participation and is already planning to get Havre in the Cropping Seminar rotation again next year. An added benefit of this, she said, is that she can bring in the specialists she would be consulting or sending producers to with their questions anyway.

This gives everyone the chance to put a face to names and start a rapport.

Plus, she said, this brings the lecturers in at a reduced rate, leaving money in the budget for other programs, including more stand-alone programs such as those her office will be providing this year. Some of those program topics include family and consumer science, master gardening and rodent pest-management, along with the grazing seminar held Jan. 11 and a pulse crop seminar Feb. 5, which offerred to PAT credits.

“I think we’re going to be doing a lot of things to try to address needs,” she said.

“And if people have a special want or need or interest, by all means call us, let us know at the Extension Office, and we’ll try to put something together.”

Private applicator licensing One change Wingard is already planning for the 2019 seminar is to include an additional class that counts toward the required six credits for renewing ag chemical applicator licensing. She said her bid this year to get the pulse fertilization and inoculation presentation approved didn’t go through so only the one class, “Why Didn’t My Pesticide Work?” with Tharp, provided credits to attendees with licenses.

Wingard said that 45 attendees signed up for credits for the pesticide presentation and they, along with other chemical license holders in this region have until the end of 2020 to get their required six educational credits to keep their license current.

If enough people express interest in more class credits, she added, she will work on getting more, including bringing Tharp back, but unlike the Cropping Seminar, these classes might require a fee to help cover the presenter’s travel costs.

People who are good at independent s t u d y, W i n g a rd s a i d, c a n go to t h e Extension Office and take a 50-question open-book test for $20. They must pass with at least a 70 percent score. The study book and addendum are available at the office, she said.

New applicants and those who wish to get credits through training can attend a free, seven-hour training course in Harlem March 6. The course starts at 8 a.m. at the FBIC Transportation Building, at 258 Agency Main St. Anyone wanting to attend can contact Amy Bowser at amybowser@ montana.edu or 406-994-5178.

——

■ See Seminar Page 12

February 2018

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Pam Burke community@havredailynews.com The 2018 Golden Triangle Cropping Seminar marked the 10th year of this touring lecture series, but the first year it has included Havre as one of its stops, said local host Montana State University Hill County Extension Agent Shylea Wingard.

Each of the four agricultural presentations — on pulses, budgeting, pesticides, and grazing beef on cover crops — had between 60 and 79 participants, Wingard said, adding that the other seminar stops were in Fort Benton, Stanford, Shelby, Chester, Cut Bank, Conrad, Choteau and Great Falls Jan. 8-11.

“This is the first time that Hill County has gotten to participate in that,” she said, “and so I was really pleased that so many people came.”

After speaking earlier in the day at Fort Benton and Stanford, speakers Clain Jones, MSU Extension soil fertility specialist; Cecil Tharp, MSU Extension pesticide specialist; Kate Fuller, MSU Extension specialist in ag economics and economics; and Darrin Boss, MSU’s Northern Agricultural Research Center superintendent, started their presenHavre Daily News/Ryan Welch Agricultural producers listen to Montana State University Extension ag economist Kate Fuller speak Jan. 8 about market analysis and enterprise budget analysis at the 2018 Golden Triangle Cropping Seminar at the MSU Northern Agricultural Research Center south of Havre.

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www.havredailynews.com quality peas and lentils, is down under the current White House administration because the U.S. is now providing less foreign aid.

The role politics will play in the ag economy is a little unclear at this time, Fuller said, with a movement toward deglobalization, talk of ending or renegotiating the North American Free Trade Agreement, no indication of whether the Farm Bill will be finalized this year and other ag policy changes affecting outcomes.

WASDE, the USDA World Agricultural Supply and Demand Estimates monthly forecast for December wheat increased from $3.90 to between $4.50 and $4.70 per bushel, but live steers were down $10 per 100-weight, she said.

The Food and Agricultural Policy Research Institute, or FAPRI, which predicts longer term prices said that for the next three to five years wheat will stay below $5 per bushel and steer prices will remain flat for the next three, she said.

As always, weather is a wild card, she said. The prediction for the area is for a wetter winter with moisture continuing into spring and summer, which is predicted to be hot, and all this has potentially large implications on producers’ bottom line.

Armed with these number, Fuller said, producers can start developing an enterprise budget which will help analyze numbers, make estimates and help with future decisions.

An enterprise is something produced on the ag operation, she said, such as spring wheat, lentils, hay or livestock. Most opera-

FARM & RANCH tions have more than one, and this budgets allows for comparison of cost and benefit from each.

Fuller worked through a budget with attendees providing numbers, but she also said that Montana Department of Agriculture, North Dakota State University and University of Idaho have sample budgets, spreadsheets, cost calculators and other resources available.

MDA, she said, generally bases their budgets on the North Dakota State budgets.

Idaho’s budgets have some irrigated farming information which might not be useful for Montana producers, however, she added, they provide a lot of detail and give insight on assumptions.

One thing to keep in mind when looking at out-of-area resources is the feasibility of recommendations.

For example, Fuller said, mustard may be bringing in huge prices right now, but without contracts, getting the seed to market could up the expenses.

“The market is a huge barrier here, so you can look at these budgets and think something looks really good, but if you can’t get that crop to market then it’s not going to do you a whole lot of good,” she said.

The budget has three main categories — revenue, direct costs and indirect costs.

Budgets are a profit projection, Fuller said, so revenues are estimates based on research of the markets, forecasts and other influences, and costs are based on most likely numbers, especially with yields.

Producers looking at longterm budgeting

need to decide how realistic the numbers are, In the short run, producers can omit indirect costs if land and machinery already in place, focusing on return over direct costs, she said.

Direct costs, such as seed, fertilizer, chemical, fuel and crop insurance, can be gleaned from the previous year’s numbers or by searching out specific prices.

Indirect costs are a little trickier, she said, because they involve estimates and, often, formulas to calculate the numbers.

Indirect costs generally cannot be easily allocated to a specific enterprise, such as land, machinery and overhead.

If a producer’s bottom line shows that an enterprise is not making money, adjustments can be made, Fuller said, but the new numbers need to be plugged into the budget.

For example, a producer can change from wheat-fallow rotation to continuous cropping. Continuous crop rotation might bring lower yields — unless a pulse is planted that is likely to increase soil nitrogen over the long run — but it removes the costs for chemical fallowing. Continuous cropping also will likely increase operation costs on the machinery, but better utilize a machine that would otherwise be sitting idle and not contributing to its own payments. It also might require specialized equipment.

Plugging these numbers into budgets gives producers a way to compare the bottom line of changes like this.

Other decisions could be made about buying crop insurance or a new tractor to replace one that has had high repair costs

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or is not as efficient on diesel or machinery lubrication use per acre.

Tools such as NDSU’s formula for diesel cost — .044 gallons times horse-power hour — and lubrication cost — .15 times the fuel cost — help quantify these costs. But, Fuller said, producers need to also look at the opportunity cost of the machine purchase.

In other words, what is the next best thing that could have been done with the money used to buy machinery?

Maybe changes to overhead — including machinery housing, various insurances, vehicle licensing, utilities, tax preparation and office expenses — can be made, she said. Or maybe land is better leased or purchased. What affect does labor have on the budget? Does that improve production of an enterprise? Does it affect another enterprise or free up the producer for something else?

Any combination of these factors can be plugged into a budget spreadsheet, Fuller said, to provide “what if” scenarios to calculate breakeven points.

Enterprise budgets, on current production practices and on potential ones, can be compiled into a spreadsheet that offers comparison of enterprises and to give an overall idea of cash flow for the entire operation, she said, which is especially useful in diversified operations.

Diversification has some risk-reducing value, she said, and it might allow for more efficient use of machinery, land and structures, but there may be added expenses and

■ See Budget Page 12

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Seminar: More ag events in the area

Budget: Online sources provide tools

■ Continued from page 3

■ Continued from page 11

Editor’s note: See this and upcoming Farm and Ranch issues for more in-depth

looks at 2018 Golden Triangle Cropping Seminar presentations.

Upcoming Ag Producer Events Feb. 7, Level 1 Master Gardener course, Rudyard • An eight-week, 16-hour, course on horticulture • Contact Shylea Wingard, 265-5481, ext. 233, or shylea.wingard@montana.edu; Jesse Fulbright, 759-5625 or jlf@montana.edu Feb. 13, Belle Pulses USA grower meeting, Hingham • Will cover pesticides (possibly one credit), sampling process, and a Q/A session • Contact Jayson Hauer, 397-3168 or jayson@bellepulsesusa.com Feb. 13, Rural & Urban Varmint Control workshop, Havre • How to control varmints in the home and yard — including mice, rats, skunks, raccoons, squirrels and snakes • Contact Jasmine Carbajal, 265-5481, ext. 235 Feb. 15, Golden Triangle Malt Barley meeting, Conrad • Topics include crop rotation, weed and nutrient management, barley breeding, fieldto-market sustainability and barley markets • Contact Pondera County Extension, 406-271-4054 or adriane.good@montana.edu by Feb. 9 Feb. 15, Madison Food Park informational meeting, Havre • North Central Stockgrowers Association has invited Todd Hanson, director of development, to discuss the proposed 3,018-acre food processing facility near Great Falls, address community concerns and highlight opportunities for beef, pork and poultry producers.

• 7 p.m., Hensler Auditorium at Montana State University-Northern.

a steep learning curve. These, she added, can be budgeted for.

—— Links to online sources to get started: MDA Sample Budgets • http://agr.mt.gov/Grants/new-2017montana-pulses-buyers-guide-crop-budgetprojection-comparisons-now-available • or just Google “Montana Crop Budget” NDSU Sample Budgets • http://ag.ndsu.edu/farmmanagement/ crop-budget-archive U of Idaho Sample Budgets

• http://uidaho.edu/cals/idaho-agbiz/ crop-budgets Estimating Farm Machinery Costs •http://extension.iastate.edu/agdm/ crops/html/a3-29.html Budget Building • http://ageconmt.com/winter-wheatproduction-budget/ Other Resources • http://msuextension.org/econtools/nitrogen/ • http://msuextension.org/aglease/ • http://msuextension.org/cropinsurance

Cropping Seminar, Extension programs come to Havre