The Business Agronomist Spring 2014 by Thoughtwell Creative

Spring 2014 Issue 5

速

Contents

Spring 2014/Issue 5

Publisher

Grow Community of Independents

Editor in Chief

Greg McDonald greg.mcdonald@grow.ca

Editor

Jenny Flaman jenny@impactgr.com

In Every Issue Look Closely 3 A note from the editor

New Technology is Helping to 24 Grow More Bushels

Art Director

Kate Klassen kate@impactgr.com

Contributors Bruce Barker John Dietz Ron Friesen Anita Anseeuw Heather Boensch

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CIP Document Solutions print@gocip.com For more information or extra copies of the magazine, contact Grow Community of Independents at 1-888-975-4769 or view it online at grow.ca Your feedback is important to us, let us know at info@grow.ca

Features Driving Change with 4 Grow Academy Commodity Markets Outlook 7 for 2014 Cereal Breeding Investment Lags

Improving Crop Production 14 Through Genetics The Great Seed Debate

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With the beginning of a new year, it’s exciting to look at the potential for the future and what this year could bring. It could bring great success with recordbreaking results, and it could bring disappointment. These are the chances we take in agriculture. The most important thing anyone in agriculture can do is be prepared and educate yourselves about available technology and innovations that could get you through anything. In this issue of The Business Agronomist, we would like to help you on your journey towards preparation for this coming season from the seed you plant in the spring to the product you sell in the fall. From February 25 to 27 of this year, GROW hosted our fourth annual spring Grow Academy event. The title of this

event was “Planting the Seed,” which, from a literal perspective, focused on the advancements we’re seeing in seed breeding, how those advancements are changing the western Canadian agricultural landscape, and how important seed is for the success of a crop. From a figurative perspective, Grow Academy is sharing agricultural knowledge and giving GROW Business Agronomists the tools to help their farmers succeed into the future. During this Grow Academy event, a panel of GROW’s Senior Agronomists participated in a group discussion with approximately 110 Grow Academy attendees about the future of seed. We have transcribed that discussion to share with you in this issue, to not only show the benefits the GROW Community sees in certified seed and seed treatments but the skepticism behind them, as well.

We’ve also looked into cereal seed breeding and what trends are surfacing that will affect cereal production in the future. And for other crops, what are the advancements we’re seeing in traits and stacking traits in canola, corn, and soybean production? And to top it all off, we’ve looked into what the markets are showing as demand for the finished product this year with some insights on a commodity outlook for 2014 from FarmLink Marketing Solutions’ Chris Corbett. So let us help you start the season off with a bang. We hope you enjoy this issue of The Business Agronomist. Jenny Flaman, Editor

Driving Change with Grow Academy By Heather Boensch

At Grow Community of Independents we believe that one of the keys to helping our farm customers achieve higher yields and profitability comes from empowering our team with the highest level of knowledge and expertise available in our areas of service. The Grow Academy was created to continually invest in the personal and professional development of GROW Dealers’ staff. We believe that when we make investments in people it demonstrates our commitment to our staff and our customers, to be the best at what we do. We are always striving to know more, be better, and help farmers in Western Canada grow millions more bushels. The value of continuous learning translates into personal and professional growth opportunities. It also means creating skills and experiences that are applicable to serving the needs and interests specific to our farm customers. We understand that employee development happens in many different ways – through learning from experience, by coaching or by being coached, through best practice exchanges coupled with information and lecture-based sessions from industry experts.

We are also committed to helping the GROW Community reach the peak of their capabilities, offering them the opportunity to learn from each other. Grow Academy is a forum for GROW Dealers’ staff to come together to share knowledge, highlighting the benefits of the products and services we sell from our “hands-on” experience, as well as learning about new technologies and services that are available from industry leaders, educators, and business professionals. While we are increasing our collective knowledge base, we are also creating networking opportunities to make contacts and exchange ideas. Gaining a deeper understanding of how well products and new technologies are working in the field is invaluable knowledge. Grow Academy just completed the fourth annual spring event in February. We called it “Planting the Seed” and

participants took in three days of learning about current and future seed trends as well as new technologies in the agriculture industry. The program covered future and current commodity markets in addition to national and international consumer demand trends and how they impact Canada’s agriculture and food industry. We spent time focusing on how to protect crop potential through the latest in biotechnology, plant breeding, plant nutrition, diagnostics, and tissue testing. Seed enhancements including seed treatments and microbial-based biofertility, biocontrol, and bioyield enhancer products were also discussed. Other topics included crop rotations, sprayer technology, and how to be an advocate for agriculture in Western Canada. We are grateful to the guest experts and speakers who shared their knowledge

and experience with us and believe that we are better equipped to serve each other and farmers going forward. It was a great way to build on our strengths and prepare us for the upcoming season. Grow Academy is about the spirit of learning. In the information age it is difficult to sort through the vast amount of information that is thrown at us day after day. Grow Academy focuses on taking that information and highlighting the things that are relevant for farming in Western Canada. Here is what we strive for at Grow Academy:

Among our students we will create a network with the ability to gather, build, and share information. We will strive toward excellence at whatever level we start and push ourselves to new heights by stretching conventional wisdom and supporting each other as we break new ground. We will challenge each other to improve, always positively and with best intentions for agriculture. - The Spirit of the Academy Our philosophy about learning is that it translates into creating skills and experiences that are applicable to serving the needs and interests specific to our farm customers. As our people grow, so does our ability to ensure customersâ&#x20AC;&#x2122; success.

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Commodity Markets Outlook for 2014 By John Dietz

Maybe one major crop will show a profit this year.

Canola may have a glimmer of hope for 2014. It’s not much, but it may be the best there is for profit potential in an early outlook for the new crop year. “It is going to be difficult to pencil in a profit. But one of the crops that we think will show a slight profit will be canola,” says Chris Corbett, marketing advisor and manager of internal staff training for FarmLink Marketing Solutions, Melfort, Saskatchewan. FarmLink has a network of nearly 30 advisors across Western Canada, guided by a team of four market analysts in the Winnipeg office. The company works with more than 375 farm clients on the Prairies, guiding them through when and where to sell their canola, corn, wheat, soybeans, and other commodities.

A year ago, the outlook was rosy when producers sat down to do their crop budgets. This year, according to FarmLink, is likely to be very tough.

Tough outlook On the broad strokes, Corbett says, one of the worst droughts in history hit North America’s 2012 corn crop. It set the stage for some “very, very high prices” in 2013 on the major farm commodities. “Then in 2013, production rebounded tremendously. We had a massive crop in Western Canada, and corn had a

big comeback as well. This pushed commodity prices significantly lower, and it looks like they may stay there for quite a while,” Corbett says. He adds, “We have absolutely outproduced demand on a major scale.” Unfortunately, there’s a second layer of trouble in the outlook: logistics. FarmLink analysts, in constant communication with commodity buyers, are watching an unprecedented situation. 7

Basically, the massive crop isn’t getting to port. Local grain companies have quit buying, perhaps for the rest of this year. Meanwhile, world demand for Canadian crops continues to grow. At the other end of the system, end users everywhere are just as frustrated that they can’t access what they need from Canada. “We are incredibly bogged down,” Corbett says. “The cold winter is a massive challenge. It’s a very, very difficult addition to an already existing issue with oversupply. “The terminals are empty at ports. Boats are waiting to be loaded. We can’t get trains. The demand for rail is huge, and in this cold weather, locomotives just don’t run very well. We’re down to pulling 70 or 75 percent of capacity through the mountains.” Deep cold, north winds, and heavy snows are normal in western Canadian winters – but the winter of 2013-14 is very unusual. Deep cold began in November and has been almost unrelenting a full four months later in Manitoba and Saskatchewan. “We always have logistical problems in winter, but not to this extent,” he says. “Globally the massive demand for our farm commodities has not diminished but, because of our inability to get it shipped, the grain handling companies have to show a very, very low cash price. It’s challenging.” Not all buyers of western Canadian crops are facing the same challenges, though. Cash brokers, for example, have access to premium prices from domestic North American end users. Loading producer cars, assuming they arrive on time, are working to get grain off farms and around the plugged elevator system. At the end of February, the market signals were telling growers to keep their grain. “A lot of buyers right now aren’t accepting business until December or January. Yes, that is very unusual. We always have new crop selling opportunities off

the combine, for September, October, November – but not this year, at this time,” Corbett says. “Today we have buyers telling us they will not be accepting any new grain sales from producers until January 2015. It could change, but with the logistical situation right now, that’s where their heads are at.”

What to do The record carryover of unsold or uncommitted grain in farm bins creates pressure on farmers and on lenders. It affects their ability to cash flow their crop input needs. Short term, growers need money to put in the next crop. By late February, they were talking to FarmLink advisors and other financial planners, looking for the firm foundation for a new crop.

The normal cash supply from old crop sales for new crop inputs, was looking pretty slim. Too much grain – a record carryover – was still in the bins on the farms. The early March situation, Corbett says, is that “a number of producers are going to have cash flow issues with getting the money to seed this crop in 2014 because they are unable to move their old crop.” “We have a lot of refinancing coming in, and that puts a strain on lenders. A lot of lenders are refinancing loans and changing terms to make sure these guys get the crop in.” If they can find it, a forward contract is one option. “I think that a lot of farmers who have maybe never bothered with a forward contract are going to look real hard at it this year,” he says.

While crop prices have tanked compared to 2013, the input costs have not been doing farmers any favours either. Economics for this crop year will favour farmers who locked down fertility and fuel prices late last year. “For the rest, fertilizer has come up, fuel has come up. Their input prices have not come down,” he says. “And, the price of land is definitely rising.” A long-term lease agreement that looked pretty good in the 2012-13 market for crops is likely to be a burden on any attempt to find a profit in a crop plan. The total cost to grow a crop in southwest Saskatchewan might pencil in at $280 an acre. It might reach $350 an acre in southern Manitoba. “We can’t pencil much profit on $5 spring wheat unless you grow 70 bushels

of it,” he says. “This year, probably more so than any year in my experience, when guys pencil out their crop plans they need to know what it costs to grow that crop.”

The same projections were suggesting that, on a number of major commodities (wheat, barley, oats), growers are unlikely to break even on the total inputs package.

FarmLink analysts were showing, as of March 1, that growers might project a return of $5 to $10 an acre on an average canola crop (compared to more than $100 an acre in 2013 projections). Canola has some price support due to favourable soybean futures in the U.S.

Some will find opportunity in the niche markets, if they are equipped for it and move fast enough to land a contract.

Niche profit Soybeans, like canola, are down in value from 2013 but offer hope. “Soybean values are actually pretty frothy in the U.S., so we’re expecting soybean acres to be up. On the Prairies, we’re likely to grow a fair whack of beans,” Corbett says.

“The problem is that niche markets can get over-supplied in a hurry. Canaryseed is an example. There’s some nice prices for old-crop canary. Now, there’s a lot of potential new crop acres and we could end up in an over-supply situation again,” he says. “If they do see a profit potential somewhere, I recommend that they lock it in. Remember, all this is based on an average crop. The most important factors in grain marketing are weather and global economics, and we can’t control either of them.”

Cereal Breeding Investment Lags By Ron Friesen

The goal of making corn a major crop for the Prairies marks a major shift for agriculture in the region. The West is now seeing crops which would not have been considered viable a few decades ago.

Corn is one of them. From an annual acreage of less than 500,000 acres today, Monsanto believes the Western corn market could reach up to 10 million acres by 2025. Last year, a watershed moment occurred in Western Canada when Monsanto announced a bold plan to introduce new crop options for Prairie farmers. The implication of the announcement was significant because the crop Monsanto was offering growers wasn’t wheat. It was corn. “The western Canadian agricultural landscape could look markedly different in 10 years as breeding and technology gains in corn give western Canadian farmers the option to plant a crop they haven’t traditionally considered in their crop rotation plans,” proclaimed a June 24, 2013 Monsanto Canada news release announcing a $100 million investment over 10 years to develop earlier maturing corn hybrids. The goal of making corn a major crop for the Prairies marks a major shift for agriculture in the region. The West is now seeing crops which would not have been considered viable a few decades ago. Corn is one of them. From an annual acreage of less than 500,000 acres today, Monsanto believes the Western corn market could reach up to 10 million acres by 2025. Soybeans, another newcomer, have already established themselves as a major player. Acreage has exploded in Manitoba, and the province now ranks as Canada’s second-largest soybean producer after Ontario. Soybean acreage is also expanding westward into Saskatchewan, which overnight has become Canada’s fourth-largest soybean-producing province. You can credit major investments in research and development for producing earlier maturing corn and soybean varieties, which are helping to change the face of Western agriculture. But what about cereal crops, which have dominated the Prairies ever since the settlers arrived? Are they keeping pace with the new kids on the block? Sadly,

the answer appears to be no. “The current state of cereal breeding in Western Canada is somewhat depressed and not at the level needed to be sustainable and to get the innovation we require to enhance yields and keep it a competitive crop for growers,” says Rod Merryweather, CEO of FP Genetics, a shareholder-owned pedigreed seed company headquartered in Regina. “The only way that can happen is through substantially increased research.” But that requires money. And industry officials generally agree research and development investment in wheat and cereal breeding is falling behind other high-value crops. “There hasn’t been nearly the amount of investment in breeding and research that we really need to keep up with what other countries are doing,” says Anita Brule-Babel, a University of Manitoba cereal breeder. The results are apparent in figures from Statistics Canada. From a peak of 35.3 million acres across Canada in 1986, wheat plantings last year totaled 26.3 million acres, a drop of nearly 35 percent in 27 years. Meanwhile, other crops are expanding by leaps and bounds. Canola, which recorded 6.5 million seeded acres in 1986, has tripled to over 19.9 million acres in 2013. Soybeans across Canada jumped from 950,900 seeded acres in 1986 to 4.5 million acres last year. Another success story is lentils, which increased over seven times from 323,200 acres to 2,393,000 acres. “That’s research,” explains Cam Dahl, president of Cereals Canada, a new industry coalition which lists developing markets and improving cereal breeding as its main goals. “We need to see the cereal side of things get that benefit, as well.” 11

But even though it is still the biggest crop on the Prairies, some suggest the rise of other crops, along with a decline in research and development funding for cereal grains, could eventually make wheat a mere rotational crop. One person raising that possibility is Murray Fulton, an agricultural economist and University of Saskatchewan public policy professor. He notes wheat yields have not risen nearly as fast as those of corn and canola and are not expected to catch up any time soon. The reason, he says, is a lack of research funding. “The really critical thing is that one shouldn’t assume wheat is going to remain a dominant crop. It’s really been pushed aside in many areas by pulses and canola over the last 30 years,” says Fulton. One reason, according to industry officials, is an apparent disengagement in cereal breeding by the federal government. As an example, Brule-Babel notes Agriculture and Agri-Food Canada is closing its Cereal Research Centre in Winnipeg and moving scientists and staff to other locations in Manitoba. Many employees have left the public sector and the loss of technical and scientific expertise is significant. “There’s going to be a huge lag in progress with those programs just because of the loss of personnel,” says Brule-Babel. “There will definitely be less public-type breeding with the anticipation that private industry will pick up the slack.” While Ottawa increasingly appears willing to hand cereal breeding over to the private sector, Australia stands in sharp contrast. Merryweather says Australia has a breeding program consisting of a threeway partnership between producers, government and private industry. The result is that, although Canada and Australia have a similar size market in cereal grain, Western Canada has only a quarter to a third of the investment in wheat breeding that Australia does. “The Australians realized years ago that they needed to do significant investment. To do that, they realized a combination of public and private investment would be required,” Merryweather says.

Another problem is that wheat is genetically complex and difficult to

breed for increased yields. Wheat is a tetraploid – an organism possessing four times more chromosomes than a normal haploid chromosome set. Because it has a complex chromosomal base, wheat is harder to breed for specific traits than corn, soybeans, and canola. As a result, hybrid wheat varieties with increased yields are still some distance away. But that may be changing. Merryweather says FP Genetics will launch a hybrid variety of fall rye next year – the first cereal hybrid to be grown commercially in North America. Now that the hybrid barrier has been broken for rye, wheat could be next. “I believe that within the next decade – and this will take a lot of money and investment by companies – they will get a breakthrough and be able to develop hybrids that deliver economic benefits to growers,” says Merryweather. The outlook for better research and development funding isn’t all gloom and doom either. Merryweather says Ottawa’s recently announced intention to sign UPOV 91 (an international protocol on plant breeders’ rights) will expand the scope of breeders’ property rights and give them increased ability to recoup investments in plant breeding. That, in turn, should encourage more research and development for new varieties, including wheat. Another encouraging sign is the recent formation of provincial wheat and barley commissions to administer check-offs and collect funds to help support the chronically underfunded Western Grains Research Foundation. And don’t count out wheat as a crop of the future. Fulton notes there are places on the Prairies where corn and soybeans will never make major inroads because of location and weather. The crops that do well in those places are cereal grains, just as they have always done. Merryweather adds that wheat is one of the most widely grown crops worldwide and a basic foodstuff for billions of people. That demand will only grow as the global population increases. “We need this crop,” he says. “It’s the biggest and one of the most important crops in the world.”

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Improving Crop Production Through Genetics By Bruce Barker

In this era of multiple traits stacked into hybrids and varieties, stepping back to look at the big picture of where stacked traits came from and how they have benefitted agriculture production is a worthwhile exercise. With the introduction of Roundup Ready and Bacillus thuringiensis (B.t.) insect control technologies, both in 1995, the intervening 19 years has seen an exponential increase in combining technologies to better control weeds and insects. Today, corn hybrid traits include glyphosate tolerance, glufosinate tolerance, and resistance to above- and below-ground insect pests including corn borer and corn rootworm. Developed and awaiting registration include glyphosate + 2,4-D tolerance and glyphosate + dicamba tolerance. On the horizon is everything from drought tolerance, increased nitrogen use efficiency, and new insect protection technologies. Many of these traits will be stacked together in the future. “Eastern Canada and the United States is where a lot of the stacked traits are popular, and where they were first developed in corn and soybean. We’re starting to see some use of stacked traits in Western Canada in corn,” says Sean Dilk, western technology development representative lead at Monsanto Canada in Winnipeg, Manitoba.

Traits benefitting agricultural production

Going back to the development of herbicide-resistant traits, the numbers speak for themselves. Adoption of many herbicide-resistant traits has been rapid, especially in canola, soybean, and

corn. The vast majority of these acres are herbicide resistant. For example by 2009, only one percent of canola acres were planted to non herbicide-resistant cultivars; glyphosate- and glufosinateresistant canola covered 89 percent of canola acres, non-genetically modified imidazoline (Clearfield) canola was planted on 10 percent of canola acres. A similar trend has been observed in corn and soybean in Western Canada and the rest of North America where the vast majority of acres are planted to genetically modified cultivars. Higher yields, lower dockage, better seed quality, and reduced herbicide and tillage costs combine to deliver higher net returns with herbicide resistant canola. From 1996 to 2004, the estimated economic benefit of herbicide-resistant canola in Canada was U.S. $617 million. Similarly, the introduction of B.t. technology enabled corn growers to capitalize on improved insect control in corn. Lack of decent insecticide options for control of European corn borer meant few acres were sprayed. The introduction of B.t. technology gave growers an opportunity to control corn rootworms effectively as well as above ground pests such as European corn borer, earworm, armyworms, and cutworms. The resulting adoption of the B.t. technology has resulted in almost a 10-fold decrease in the amount of active ingredient applied for corn rootworm protection. “The story on reduction of soil applied

Reduction in pesticide active ingredient application for corn rootworm protection after the introduction of B.t. traits. Y AXIS UNITS: active ingredient x 1000 lbs.

Source: Monsanto Inc.

insecticides for corn rootworm protection is clear. I don’t have the data on corn borer insecticides but frankly spraying for European corn borer and southwestern corn borer was limited to at most five to 10 percent of the acres because spraying was not so effective,” says Eric Sachs, scientific affairs lead with Monsanto in St. Louis, Missouri. “That’s why in-plant protection [with B.t. technology] was so important and was widely adopted by farmers.” In Western Canada, from 1996 to 2004, herbicide-resistant canola provided an estimated drop of 20 percent in the environmental impact of herbicide use compared to non-herbicide resistant canola.

Trait development in canola Currently, Genuity Roundup Ready canola and Genuity Roundup Ready 2 Yield soybeans only carry a herbicide resistant trait. Dilk says the lack of consistent insect pressure in Western Canada has meant a lower need to stack

insect resistant traits into canola. “Bertha armyworm and diamondback moth don’t occur that frequently, so growers can manage the pests with insecticides. Flea beetles might be an opportunity, as they are a problem in many years, but seed treatments are managing them well at this point,” says Dilk. Monsanto is working on new traits that may, or may not be commercialized or stacked with other traits. TruFlex Roundup Ready Canola technology is currently working its way through the regulatory system, awaiting approval from China. TruFlex technology allows greater flexibility in application. The application window of Roundup WeatherMAX is up to the first flower stage of canola at twice the current labeled rate. This new technology would offer improved performance of hardto-control weeds including dandelion, foxtail barley, wild buckwheat, cleavers, and wild oats. In addition, 24 new weed species would be added to the Roundup WeatherMAX label. TruFlex technology would also provide improved crop safety.

A couple technologies offer the potential for stacking traits in canola. The Liberty Link and Roundup Ready technologies can now be stacked together in canola to provide growers with greater choice in weed management and a potential way to help manage herbicide resistance. “The development of this technology goes back to sustainability and having different modes of action to help manage herbicide resistance. There are glyphosate-resistant weeds in Canada, and having multiple modes of action could help manage the resistance,” says Rob Ripley, western DEKALB agronomist lead with Monsanto Canada in Saskatoon, Saskatchewan. Monsanto, Bayer, and DuPont have cross-licensing agreements on the technologies. Timelines for this stacked technology to come to market are unclear, if at all. “We are assessing the need to bring this type of product to market in canola,” says Ripley. “There has been some question of need for this product because growers are currently managing volunteers

using the current production systems in rotation. There would have to be demand from growers for a company to move this stacked technology forward.” The other stacked trait that holds potential for canola growers is dicambatolerance stacked with the Roundup Ready trait. Monsanto is currently pursuing the stacked trait in soybeans, expected in the next few years, and it is on the horizon for canola, but not until the next decade. Dow AgroSciences has also developed the Enlist weed control system, which has 2,4-D and glyphosate resistance in corn and soybean. Commercialization on it could be in the next few years.

How high can the stack go? Corn is a different story because of the consistent insect pressure and need for better control in the high-yielding crop. Today, corn growers in Canada can choose from multiples of stacked traits, including glyphosate and glufosinate resistance, as well as multiple modes of action for B.t. control of below- and above-ground insect pests. “Stacking multiple modes of action for B.t. helps to manage insect resistance and will help to extend the life of the B.t. technology. It is like using multiple herbicide modes of action to help manage herbicide resistance,” explains Dilk. While stacked traits in Eastern Canada are common, the use of the technology in Western Canada is starting to catch on with corn growers. Yield benefits for using the B.t. stacked trait for control of European corn borer have been around 4 bu/acre. That compares to approximately 13 bu/acre yield increase in Eastern Canada. “There is higher yield potential and higher insect pressure in the east, so we see a bigger yield response from the technology,” explains Dilk. Future trait development and potential for stacking traits is wide ranging. 16

The major technology companies are investigating insect and disease control, and abiotic stress tolerance caused by environmental stress. While tolerance to abiotic stresses was once high on the research agenda, the difficulty in unraveling these genes has tempered the optimism of researchers. The deciding factor in which traits will make it to market as stacked traits will hinge on how growers perceive the benefits of the traits on their farms. If the legacy traits of glyphosate and glufosinate resistance, and B.t. technology are any indication, when industry delivers a profitable solution to growers, growers will rapidly adopt it. “There will have to be a market demand, but it won’t necessarily be stacked traits or nothing. Companies realize that there needs to be a demand for stacked traits, and if there is, they will pursue commercialization, but if it makes more sense for growers to use a single trait, that’s where the market will head,” says Ripley.

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The Great Seed Debate A panel discussion about seed treatments and enhancements and how certified seed will shape the future of farming. During Grow Academy’s spring session, “Planting the Seed”, this February, senior Business Agronomists from the GROW Community conducted a panel discussion with a group of approximately 110 attendees. Business Agronomists Dale Houston of Double Diamond Farm Supply in Boissevain, Manitoba; Jeremy German of G-Mac’s AgTeam in Kindersley, Saskatchewan; Greg Frey of Cavalier Agrow in Meota, Saskatchewan; and Roger Barron of Sturgeon Valley Fertilizers in St. Albert, Alberta answered

questions and responded to comments regarding their experiences and opinions about the changing face of the seed industry in Western Canada. Here is the discussion that was heard by the group at Grow Academy.

Q: Tell us what you are seeing in seed enhancement products being applied by farmers right now.

DH: For our region you have to break up the crops. With canola, and any other crops, it comes treated; it’s 100 percent seed treatment. We’ve had pretty small uptake on seed enhancement products with canola; we just found that growers haven’t really adapted to that. On cereals, fungicide and insecticide seed treatments, well over 90 percent get that package, and it might be higher with some of the growers that we work with exclusively. Seed enhancement products, on cereal seed, we would probably be at 20

From left: Dale Houston, Jeremy German, Greg Frey, and Roger Barron

percent. We haven’t seen a lot of growth in the last couple of years. Soybeans would be another major part of our business; we do 97 to 98 percent seed treatments. Seed enhancement products with soybeans would be zero because of the logistical problems with applying something like that on the seed.

JG:

I think about 65 percent of our growers apply seed treatments. We’ve got nine locations at G-Mac’s and some would be at 90 percent for treatments and some locations might be at 25 percent. And some of those businesses we’ve only owned for a couple of years. When it comes to canola we’ve got a strong market share on bags sold, and very high market share in bags treated by JumpStart. We’re trying to get a good amount of phosphorus into the canola, so we do recommend JumpStart quite a bit. We haven’t expanded that business too much into the cereals, but it’s something that we’re looking to work on, to use

JumpStart to get more phosphorus into the plant. When it comes to wheat, we use a product from NutriAg called VigorMax. We’re using that as a nutrient dressing. We’ve got deficient soils in zinc and we’ve seen some great response and done some good field trials to lead us down that path. One of the other things we’ve done to try and ease logistics is moving to the kegs. So we’ll put VigorMax in our kegs, and it makes it one easier step to adopt into the farm.

GF:

As far as seed treatments go, if we’re dealing with a fungicide or insecticide on cereal crops it’s going to be 95 percent plus on-farm use. The other 5 percent, there’s the odd producer that has a good seed treating system that might sell some bin-run seed to their neighbour and he’ll treat that for them. So, there is a little bit of custom seeding being done by guys on the cereal side with their own treaters. The seed enhancement product lines, JumpStart and seed primer that we’ll put on canola, are 100 percent done by us at

our facilities.

RB:

In our area we see about 85 percent of treating done on farm. With our commercial on-farm custom treating system, we’re able to go to the farm. We’ve probably taken about 10 percent of the business. 75 percent is done by the farmer and we’re doing about 10 percent, so 85 percent is done on farm. In Alberta, we also have a number of seed cleaning facilities that have good treating systems, so I figure about 15 percent of the cereal seed that’s going in the ground is treated at the commercial treating facilities, whether it’s a seed grower or a seed plant. So for the farmers that are doing it themselves, the 75 percent, it’s as easy as it could be; they’re wanting to use one product and some of them are going to an insecticide or fungicide combo product. With our unit we have a dual tank system where we could put on a nutrient seed dressing, like a VigorMax or PreCede, so that enables us to have a conversation. When we’re doing it, we find the farmer

is usually more able to say “OK, yeah go ahead and put both on.”

Q: Why do you think people are treating their seed on farm? GF: I think the treating that is getting

done is because people have decent equipment. There is a lot of treating not getting done because of a lack of equipment. Those producers would get treating done elsewhere, but in my area, there is no “elsewhere”, you either treat your own seed or it’s not treated. There are no mobile treaters and our seed cleaning plants don’t have treating equipment in them. Even with the people who have put the investment in for good seed treating equipment, I think some of those would be willing to let them get parked in the bush if someone else was willing to do it for them.

JG: In our area it would be 95 percent

on farm and there might be 5 percent of the seed that is treated done by a commercial treater, and usually it’s by someone who is mobile. We’re in a lentil area too, so guys are looking for a polymer coating on that lentil that will keep the inoculant viable. So a vast majority of that 5 percent would be getting polymer, I guess besides the canola market. What’s kind of lagging for the increase in treating right now is grower’s comfort with the practice of treating and having a good, accurate system.

DH: The portion of seed that is treated

on farm, like you guys mentioned, is because of the logistic factors or convenience, where they can treat it out of the bin and into the truck that’s going to the drill. Some guys have invested in a little higher grade of seed treating equipment where they can actually do a decent job on their farm, but there is also that lack of other options. Two years ago we purchased a commercial mobile seed treater to do on-farm work, and we have seen a shift where we can go on farm with the machine. Even guys who have a G3 are using them and hiring it out to a commercial treater and storing it so that in spring it’s done and ready to go.

RB: We find that with our commercial RB: unit, going to the farm, they do it prior to seeding, there is some controversy on the farm to put treated grain in a bin for a long period of time, or even in a truck if they feel they might need to take a load to the elevator. So we’re trying to work with that, sending out some incentives, educating. So most of our growers are treating right into the air cart.

Q: Please explain your thoughts on your retail selling certified seed in future. GF: The growth of certified seed sales,

especially on cereal seed or the larger grains, will be aided by retails making it available and showing the benefits of the variety, so I think we’re going to be a big part of that percentage increasing. It will not be at the expense of the local seed growers. The certified seed I’m selling today is all wholesale through local seed growers who really and truly would rather we sell large amounts for them instead of them dealing with 200 bushels here and 300 bushels there; they’d rather sell Super-Bs through us. As soon as we have facilities built, that will definitely make that part a lot easier. And I think a big benefit of being a part of that certified grain chain for us will be the seed treatments and the seed enhancements that we put on for the growers as they go out the door.

JG: At G-Mac’s we have a similar model

or at least the potential for a similar model for the future, especially when it comes to cereals. We want to have the ability to buy that bulk product from local seed growers. There are getting to be fewer and fewer of them in our area, so the seed growers that are existing are going to get bigger and then have us work as their wholesaler. We’ll be set up with a plant and treating ability to put on what’s appropriate at that time.

DH:

Our business model at Double Diamond is similar to what the last two guys have described. We want to emphasize the importance of the relationship with the seed grower. At Double Diamond we can’t grow the seed, so it still has to be grown somewhere. A key relationship with a seed grower is pretty crucial.

We just went through looking at setting up a bulk cereal seed business, and that was one of the concerns that we had. When we have a couple of key customers that are retailing certified seed from their yards, we thought they might be upset that we were wanting to get in the game. We just finished our meeting with them and it was actually encouraging.

Q: Understanding that the seed industry is changing, do you see the way you traditionally sell seed changing at all? DH: Yes, I think in the future there is

going to have to be a mind shift for the retailer. I know in a lot of our area, the processing and cleaning facilities are already there, so there is no need to rebuild that whole infrastructure. It’s just going to be working together with the seed growers, the processor, and the retailer, and there is going to have to be a little bit in it for everyone at the end of the day that makes it successful.

JG: In our area we don’t have a lot of

seed cleaning plants, and I think, in the future, there is going to be an opportunity for us, something that we’re evaluating and looking at investing in. What I think a lot of farmers are looking for with a seed treatment is consistency. They’re getting the best seed, they’re getting the right traits and the right genetics and they want to make sure that when they put that seed in the ground they’re getting the most consistent germination and stand that they can get. A lot of times when we’re talking about the value of a seed treatment, it’s to make that more consistent. One of the other things we’ve seen is that as farm sizes increase, if you’ve got a 2,000 or 3,000 acre farm you know exactly what’s going on, you know the different parts of the field. As the farm expands to 10 times that size, you need to use more tools to improve the consistency and make that yield more consistent across the farm with all crops. Some of our biggest farmers have gone after the seed treatments and used

them to produce more consistent yields.

GF:

I do think the market and how seed is getting sold will change the cereal world, though I think we need to see a bit of increase in the amount of innovation that’s coming forward in the market. If you have a 1 percent change in yield, growers aren’t all that excited about switching to new varieties; they’ll stick with the tried, tested, and true. We still have growers that talk fondly about Westar canola and we know how far genetics have come since then. Growers are really skilled at calculating ROI, and if they can see a positive ROI, they will spend money, they will switch seed more often, and the whole chain can change.

RB:

That’s what we’ve really looked at, not being in the business yet. I don’t think it’s going to be a matter of how it gets paid for once there’s value there and a grower sees it. I know, most of my growers, if there is a serious standability improvement and yield gains, guys are going to pay for certified seed. It’s like the introduction of hybrid canola 15 years ago, there were a lot of nay-sayers, saying “we’re not going to pay this amount of money for seed”, and now it’s common practice, it’s happening every fall, we’re selling out of canola, and that’s where the market is. So I think it has to be put back on the chem manufacturers and the seed companies to bring us something that offers value to our growers. That’s where we can really play a key role. We’ve had some discussions with our seedsmen that are involved with FP Genetics and Canterra

that have access to the germplasm, and we need to set up some testing and validate these new lines. Anybody can make a nice marketing brochure, but we’ve got to see it and feel it. So we’re going to endeavor to do that a little more and Grow Total Acre is going to help us do that.

GF:

To draw a comparison on seed treatments, we had a lot of growers that wouldn’t spend $2/bu on seed treatments and they’re seeding their wheat at 1.4 bu/ac and getting grower rebates, so the manufacturer is almost paying them to treat their seed, and they still didn’t see the value. Those same growers today are spending $5.50/ bu on seed treatments and seeding their wheat with between 2.5 to 3 bu/ ac. Through our agProve program we proved to them that there was a value there and they were willing to spend the money after that. Prior to that it was our own fault for not showing the value or for the value not actually being there. I think the same thing will happen with the certified seed. If we can prove its actual value, they’ll adopt it, and if we can’t, well they probably shouldn’t.

Q: What is one thing GROW can do to help carry the message of certified seed? JG: One of the first things is that we do

want to encourage using certified seed. As there are new innovations and new genetics, we want to make that available

to growers. It’s a bit confusing because how are we going to manage all of those certified bushels? There is always going to be a fit to go to the farm like treating seed, but I don’t know if it would even be appropriate to invest in all of the facilities to handle certified seed for our customers. It is still going to be required, but I think we’re going to have some time before the genetics are right and the varieties are right for us to support certified seed.

GF:

I think that is the way to take certified seed to the market. New traits, new yield, any positive agronomic benefit is a big step, a big talking point. That’s easier to take to guys than seed purity and quality even. We saw it in our area with the uptake with Utmost wheat and varieties that are midge resistant. Unique trait, really good uptake, and guys are willing to switch their seed out every two years because they don’t want to lose that trait. I think that’s a good step in the right direction.

JG:

Some of the midge resistant varieties that we have in our area, they’re going to seed for a couple seasons and then they’re going to be looking for the next variety after that. That first year we’ve got the ability to sell it as new seed, treat it, and get it on the ground, and then next year there’s a good chance they’re going to use that seed again. We’ve still got to put the right nutrients, the right seed treatment, the right insecticide on that seed for the next year to hit the field again. I think it makes a case for having a mobile seed treater.

Dear GROW customers, When the management of GROW asked me to share the news about Monsanto BioAg, I was excited. Excited because I believe combining the resources of these two great companies will serve farmers in both Canada and around the globe. On December 10, 2013, Monsanto and Novozymes announced they were forming a BioAg Alliance. Monsanto BioAg will have research capacity that will be unmatched in the ag biologicals market by combining the research efforts of both Novozymes and Monsanto. When that’s combined with the ability to conduct field trials across Canada and around the globe, ag biological products will be coming to the marketplace more quickly to help farmers protect and feed their crops. Novozymes will continue to produce and package the biological products for Monsanto BioAg in their Saskatoon and Milwaukee manufacturing facilities. What does this mean for you? Over the longer-term, you can expect to see new, innovative Monsanto BioAg products on your GROW retail shelf that will help in your quest to grow even higher yielding crops. Please continue to buy your JumpStart®, TagTeam®, Optimize® and Cell-Tech from your local GROW retail. If you have any questions about Monsanto BioAg or any of our products, please contact your local GROW retail or your local Monsanto BioAg (formerly Novozymes) sales representative. Best regards,

Darrell Wolkowski Canadian Sales Manager Monsanto BioAg

® JumpStart is a registered trademark of Novozymes A/S. ® TagTeam and Optimize and Monsanto and Vine Design are registered trademarks of Monsanto Technology LLC. Used under license. © 2014 Monsanto Canada Inc. 14017 03.14

New Technology is Helping to Grow More Bushels By Greg McDonald

I was pleased to hear that with $305 million over the next five years, this year’s Federal budget is investing in rural Canadian high-speed broadband. But there is something I want to get off my chest: I’m tired of hearing the stereotype that farmers in rural Western Canada aren’t tech-savvy. Sure, there are some areas that are behind larger urban centres in terms of tech infrastructure, but farmers are some of the most technical people I know. The record yields of 2013 wouldn’t have happened if farmers weren’t squeezing every potential bushel out of each acre through the use of technology, either electronic, genetic, biological, or mechanical. And there is more to come. The advanced technology that I’ve seen on the horizon is going to be more affordable and easy to use and will take farming to higher levels. From further uses for tablets and smart phones in the field to Google Glass and unmanned ground and aerial equipment, I believe technological innovation will drive farming to higher production in a much more sustainable way. And that’s a good thing. At GROW, we are dedicated to being on the cutting edge of these technologies. We want to help make it easy to incorporate new systems and practices into our farm clients’ operations and to show their value. This year we have begun the investment in technology by building a new website from the ground up with features that make it easier to use, more

comprehensive, and mobile friendly. Here are some of the things you’ll find on the new grow.ca:

A new look with better visual navigation Our new design brings a fresh feel, and we’ve made it easier to find out what’s happening in our fields through Grow Total Acre as well as find career postings available throughout our Community.

Fully responsive pages Whether you visit our site on a desktop computer, a tablet, or your smartphone we’ve made sure your site visit isn’t limited by the device you’re using.

A new Dealer Locator The new Dealer Locator is powered by Google Maps. Now you can zoom in to find GROW Dealers right at street level or zoom out to see all GROW Dealers in your region. We’ve also added filters that allow you to find GROW Dealers by province, town, or company name.

Electronic Business Agronomy Manual Agronomic understanding and education is one of our biggest values, so we created and compiled our Business Agronomy Manual, a comprehensive

source of agronomic and farm business information on almost any topic relevant for Western Canada. An online, mobilefriendly version of this manual will be available electronically through our website this spring

GROW’s commitment to technology Our vision for GROW is “the greatest productivity, prosperity, and profit possible on every commercial farm in Western Canada, with each one proudly served by Grow Community of Independents.” Our goal is to keep improving the knowledge base and skills of our GROW Dealer staff and our customers with every tool available. Check out our website, call any of our locations, or the GROW Office in Saskatoon if you have any questions. For us, it’s important to have a presence wherever our customers are, and wherever talented career-minded individuals are. For that reason you’ll see us at trade shows, career fairs, and other community events, but for the very same reason you’ll also see us on YouTube, Twitter, and Facebook. You can find us on these platforms by visiting grow.ca and clicking on our social links. We look forward to engaging with you in person and online!

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Shannon and Byron Briske

KOCH AGRONOMIC SERVICES, LLC

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This is morning commute GROW is a Community of rural, independent ag retailers with a passion for agriculture and a determination to help Western Canadian farmers grow millions more bushels.

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