Iowa Soybean Review, November 2016 by Iowa Soybean Association

Iowa Soybean Association, 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023

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IMPACTS BEYOND ANTICIPATED RESULTS

UNINTENDED CONSEQUENCES: November 2016

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Iowa Soybean Association

Kelvin Martin, cattle producer from Nora Springs, raises cover crop seed used in the Rock Creek watershed.

November 2016 | Vol. 29, No. 2

16 Livestock and

Soybeans: A Symbiotic Relationship Don’t tell Iowa

farmers and consumers what happens in Florida or Taiwan doesn’t affect the way they do business, their bottom line or what they eat.

20 Plugging the Leak Iowa farmers and landowners are on a journey.

22 In a State Divided, Collaboration Multiplies

A debate about water quality has gained momentum across Iowa and Iowa soybean farmers are right in the middle of it.

28 Learning Cover Crop Consequences Farmers are

lifelong learners. The latest lesson for many of them? Cover crops.

About the Cover:

Agriculture policies that aren’t thoroughly vetted frequently create unintended consequences. Unfortunately, most of those consequences don’t reveal themselves until they have begun costing farmers money. In regards to water quality, for example, Christine Hensley, Des Moines City Council member, says that questions around the structure of the Des Moines Water Works board are being raised. Check out page 22 for the whole story.

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Iowa Soybean Association

EXECUTIVE review Kirk Leeds Chief Executive Officer Iowa Soybean Association kleeds@iasoybeans.com Twitter@kirkleeds

The Dance

"One of the great mistakes is to judge policies and programs by their intentions rather than their results." - Milton Friedman During my years at Iowa State University in the early 1980s, as I was pursuing my degree in Political Science, I took a number of classes that in one way or another ended up being a study of the intended and unintended consequences of decisions made by political and religious leaders over the last several centuries. I learned that the "law of unintended consequences" teaches us that actions of people - and often government - always have effects that are unanticipated or unintended. If we reflect about this "law" for a moment, we can all think of actions we have taken in our lives that led to unintended consequences. A late night drive in less than ideal weather conditions. A random meeting of a person on a flight that gave the inspiration needed to try a novel solution to an ongoing challenge. A disappointing loss in a political campaign that led to a new career path in a field you never could have imagined yourself working and enjoying. This month's issue of the Iowa Soybean Review shares a number of examples of the unintended consequences of decisions and developments in agriculture and in the soybean industry over the last few decades. You will find stories about the unintended consequences of installing drainage

tiles to make Iowa farmland more productive and another on the benefits and controversies surrounding the introduction of biotechnology. Other highlights include examining the incredible success we have had over the years in building demand for soybeans in China. A market development success story without equal, but as the "law" teaches us, there are always unintended or unanticipated results. As I thought about these stories, and many other potential examples that we surfaced in an internal staff meeting in preparing for this issue, I was reminded of the 1990 song "The Dance" by Garth Brooks. "And now, I'm glad I didn't know, The way it all would end, The way it all would go, Our lives are better left to chance, I could have missed the pain, But I'd have had to miss The Dance" One of the truly unintended consequences of many unintended consequences is that they make life a whole lot more interesting and unpredictable. I think life would be rather dull if we could always predict how our decisions would play out. I hope your enjoy this month's issue and I look forward to hearing your thoughts and receiving your feedback. American Soybean Association Directors Ray Gaesser, Corning Wayne Fredericks, Osage Mark Jackson, Rose Hill John Heisdorffer, Keota Dean Coleman, Humboldt United Soybean Board Directors Delbert Christensen, Audubon Larry Marek, Riverside Tom Oswald, Cleghorn April Hemmes, Hampton

For advertising information in the Iowa Soybean Review, please contact Larson Ent. LLC, (515)440-2810 or dave@larsonent.com. Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first day of the month preceding publication. In consideration of the acceptance of the advertisement, the agency and the advertiser must, in respect of the contents of the advertisement, indemnify and save the publisher harmless against any expense arising from claims or actions against the publisher because of the publication of the content of the advertisement. 4 | N OV E M B E R 2 0 1 6 | I A S OY B E A N S .C O M

YOUTUBE Staff Credits LOGO SPECS Editor | Ann Clinton Communications Director | Aaron Putze, APR Creative Manager | AshtononBoles light backgrounds Photographer | Joe Murphy Staff Writer | Carrie Laughlin standard Staff Writer | gradient Matthew Wilde main red bottom 1815C Tate PMSWriter 1795C | PMS Staff Dorothy Staff Writer | Allison Arp Staff Writer | Michelle Jones Staff Writer | Easton Kuboushek white Sales Directorblack | David Larson no gradients BLACK WHITE The Iowa Soybean Review is published eight times a year by:

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CAROL BALVANZ, ISA Policy Director

Unintended Consequences By Carol Balvanz, Policy Director Agriculture policies that aren’t thoroughly vetted frequently create unintended consequences. Unfortunately, most of those consequences don’t reveal themselves until they have begun costing farmers money. Take, for example, the recent push for more “pollinator habitat.” Providing more milkweeds for butterflies, especially outside of soybean fields, sounds like a great idea. Combining that effort with the current CRP program also sounds like a win-win situation. But this fall, after attending eight different Iowa Soybean Association (ISA) District Advisory Council meetings around the state, we have discovered a few unintended consequences of this well-intentioned program. Those issues have also reached the ears of Senator Chuck Grassley and Senator Joni Ernst. In a recent letter to Secretary of Agriculture Tom Vilsack, the Senators cited concerns raised by farmers in recent months about entire farms, composed of productive farmland, being enrolled in CRP at rental rates many farmers cannot compete with. That has hit some young and beginning farmers especially hard. The letter concluded, “CRP is an important program that offers land owners alternative ways to derive value from their land while providing environmental benefits to the surrounding area.

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However, we must ensure the program is properly administered and stays true to its original intent while using taxpayer dollars in the most effective manner possible.” That letter echoed what we heard across the state at district meetings. In some cases farms as large as 300 acres had been accepted for the CRP program at over $300 per acre. At several meetings, we heard that large farms had been put into the pollinator program in order to earn those top rental rates. Even though Iowa has reduced its overall CRP acreage, allowing large farms rather than marginal, environmentally sensitive acres to go into the program, cuts into the competitiveness of all farmers in that area. A further consequence of expanding pollinator habitat into CRP involves the quality of seed used to cover some of those acres. A farmer who put in a pollinator plot last spring has discovered Palmer Amaranth growing within that CRP seeding this fall. The herbicide resistant weed has shown up in several places around the state, and uncertified seed used for pollinator plots has been implicated. As ISA works through its policy process for 2017 at our State Policy Conference Dec. 15, these tangled issues will be considered for further action. If you would like to add to the discussion, please call me at 515-669-9174.

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Kevin Glanz, ISA DAC member from Manchester

It’s No Myth:

5-BEAN PODS EXIST By Matthew Wilde

once-in-a-lifetime discovery for Kevin Glanz didn’t correlate to huge yields, but the Iowa Soybean Association member still feels lucky. In early September, the Manchester farmer found an ultra-rare 5-bean pod while scouting a 13-acre soybean field that had small patches of Sudden Death Syndrome (SDS). “A little while after I found (the pod), I thought I should go buy a lottery ticket,” Glanz says. “I never saw one before in my life.” How rare was Glanz’s find? While 5-bean pods are found occasionally, a pair of soybean experts in the state with decades of experience between them in agronomy and crop production have never seen one. Prior to harvest, Glanz hoped the field would average 75 bushels per acre or better hoping the rare discovery was an indication of good things to come. After all, he found a lot of 3- and 4-bean pods as well. When combined on Oct. 10, Glanz says the field averaged 65 bushels per acre. Good for the light ground he

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farms, but not the bin-buster he hoped for. Glanz says SDS along with some lodging took more of a toll on yields than expected. “It’s still a good crop. Just not over the top,” Glanz adds. Sotirios Archontoulis, an assistant Iowa State University professor of integrated cropping systems, has yet to see what’s still considered a legendary find. Soybeans can have 1 to 5 beans in a pod, but Archontoulis said plants likely don’t max out pods regularly as a protection mechanism. How do you grow more 5-bean pods? Or at the very least, increase the seeds per unit of area. After all, more beans means more bushels and more money. “That’s a million dollar question but we do not have a clear solution that applies everywhere and every year,” Archontoulis says. “The reason is the complexity of the soil, plants, weather and management systems that farmers deal with and the many emerged trade-offs.”

Glanz has taken the following steps to increase soybean yields: • Set up a soybean-only planter. • Applied starter fertilizer with zinc, sulfur and manganese. • Instituted a foliar feeding program with fungicide. • Planted cover crops. • No-till. “I’ve been really working hard on my beans,” he continues. “Fifty to 60 bushels per acre is not enough in this day and age.” Shortly after finding the 5-bean pod in his Stine Seed Liberty Link soybeans, Glanz notified the company’s sales agronomist for northeast Iowa and southern Minnesota to take a look. “I’ve never seen one and I’ve been doing this for 17 years,” says Tony Pleggenkuhle of Stine Seed. “It’s rare, but I think you could find a couple more if you looked all day.” Besides a bountiful bean harvest, Glanz was further rewarded for his tiny treasure. Pleggenkuhle gave him a Stine Yetti cooler since the company will tout the discovery on social media for marketing purposes. “We’re all striving for higher yields,” Pleggenkuhle says. “It’s just unique to see.”

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The Unintended Consequences of

ROUNDUP HERBICIDE ®

By Ed Anderson, Ph.D., ISA senior director of research

significant number of our readers will remember life before Roundup® (Glyphosate) herbicide and Roundup Ready® herbicide-tolerant crops. Here’s a snapshot of the not so ‘good ole days’: • Farmers applied pre-emergence and post-emergence herbicides, some of which were very toxic to humans and the environment. • Intensive, expensive tillage often required numerous field passes for complete weed control. The result was soil erosion and decreased soil health. • Walking soybeans. When tillage and chemistry were not effective, weeds were hoed or pulled by hand. With the discovery and commercialization of Roundup herbicide and Roundup tolerant crops, broad spectrum weed control became so simple and effective that farmers and crop protection companies forgot about the development and application of any other practices or new chemical modes of action. Who could blame them? One-pass weed-free fields was a dream come true. The Roundup system ushered in an era of conservationminded no-till and minimum-tillage practices that prevented soil erosion and improved soil health. Roundup and subsequent glyphosate-based chemistries were so successful on farms that urban residents and municipalities also used it to control

weeds by applying low volumes of less toxic chemistry to the environment. The Roundup system was a huge win for agriculture, urban folks and the environment. So what’s the problem? As good as Roundup has been, there have been some unintended consequences associated with this technology. Here are a few: • The outcrossing of the Roundup resistance gene to weedy species was suggested to be a rare but potential gene flow problem (e.g. weedy relatives of rice, sunflower and canola). • The broad use and effectiveness of the Roundup Ready system, and the success of Monsanto Company, in particular, fed activist and government resistance to all genetically modified organisms (GMOs). • Roundup was so effective we largely forgot history. Weed populations have eventually overcome every chemical mode of action ever developed. As the Roundup system expanded, crop protection companies largely dropped their programs for discovery and development of new herbicide modes of action. Farmers transitioned almost exclusively to the Roundup® system. Some folks used the product too much and became lax in adhering to label instructions. Worst of all, most everyone

failed to realize, or denied, what was happening when weeds started popping up through the canopy following Roundup applications. It started in the South and spread throughout the country.

Herbicide-resistant weeds have forced us to remember and to go back to what we should have done all along — prepare and adhere to integrated weed management plans that include the development of new modes of action and related technologies. We must also leverage multiple modes of actions, traits, cropping systems and production practices that will ensure extended life expectancies for weed management systems.

Ed Anderson

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Iowa Soybean Association

Want to bring home more bacon?

BOARD OF DIRECTORS ELECTS 2017 OFFICERS Six farmers were recently elected to leadership positions of the Iowa Soybean Association (ISA) board of directors. Rolland Schnell of Newton took his seat as president. Farmers elected were: • Bill Shipley, Nodaway — president-elect • Lindsay Greiner, Keota — treasurer • Randy Souder, Rockwell City— secretary • Stephanie Essick, Dickens — executive committee

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ISA directors also elected Morey Hill, Madrid, and Brian Kemp, Sibley, to represent Iowa on the American Soybean Association (ASA) board of directors. “The ISA Board is committed to continuously improving the competitiveness of Iowa soybean farmers and these leaders will work to accomplish that goal,” Schnell says. “Through production research, market development, the policy process and maintaining our freedom to operate, these leaders will work on behalf of Iowa soybean farmers to carefully manage checkoff and non-checkoff resources as Iowa continues to lead national soybean production.”

ISA Executive Board: ROLLAND SCHNELL, Newton

President

BILL SHIPLEY, Nodaway

President-Elect

LINDSAY GREINER, Keota

Treasurer

RANDY SOUDER, Rockwell City

Secretary

STEPHANIE ESSICK, Dickens

Executive Committee

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WINS FOR BIODIESEL in 2016

he past few years have been a roller coaster for the industry that adds about 63 cents in value to every bushel of soybeans — but biodiesel is certainly on the right track. The Iowa Biodiesel Board (IBB), joined by its member organizations, convened in Des Moines recently for its annual meeting. The growing value-added industry for soybeans is expected to exceed two billion gallons of production nation-wide this year, 242 million of which are produced here in Iowa. Biodiesel experienced a number of wins in 2016, especially in policy on the state and federal levels. Some of those wins include:

Seven more years of valuable tax credits

IBB collaborated with renewable fuel groups, truck stops and convenience stores

to extend the Renewable Fuels Credit (SF2309) by seven years. The extension through 2024 adds much needed stability to the biofuel industry especially given the inconsistency of the federal government on the Renewable Fuels Standard (RFS). “These credits are crucial to the biofuel producers in our state who have to level out the ups and downs that occur,” says Grant Kimberley, IBB executive director. “It’s helpful to have some certainty in the market.” The tax credits impacting biodiesel include: • Biodiesel Promotion Tax Credit — retailers receive a 3.5 cent credit on B5 blends of biodiesel and a new incentive for higher blend-levels — 5.5 cent incentive for B11 or higher. This incentive is expected to double the amount of biodiesel blended in Iowa.

• Biodiesel Production Credit — biodiesel producers receive 2 cents per gallon of biodiesel on the first 25 million gallons per facility. “We wanted to incentivize and drive higher blends of biodiesel and the legislature wanted to see continued expansion in the industry,” Kimberley says. “Working together, I believe we accomplished that this year.”

Funding for renewable fuel infrastructure

IBB helped secure valuable costshare funding for retailers of biodiesel and ethanol through the Iowa Tank Fund (HF 2464). The life and funding of the program managed by the Iowa Department of Agriculture was set to expire in June 2016, but has been extended by one year (June 2017).

These credits are crucial to the biofuel producers in our state who have to level out the ups and downs that occur. — Grant Kimberley, IBB executive director

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”

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“We believe there’s still a lot of work to be done and this is a valuable program. We’re going to regroup and find a way for this program to continue,” Kimberley says. The cost-share program provides funding for infrastructure upgrades, including terminals and tanks, that ultimately allow retailers to incorporate more biodiesel.

Growing demand for biodiesel coproducts

One way to increase the economic viability of biodiesel is to create new uses for the coproducts of production, like glycerin. Governor Branstad, along with IBB, championed the Renewable Chemical Credit (SF 2300) to enhance the creation of renewable chemicals from biomass production processes. For biodiesel, this means tax credits for companies that refine glycerin to create higher-value market opportunities for the entire value chain.

“In Iowa we continue to see strong support from the public on biodiesel,” says Kimberley. “They see it, they get it and I believe that’s why we continue to see success in biodiesel policy.”

RFS volume requirements remain a challenge, but timing has improved

In an industry producing just over two billion gallons of the threebillion-gallon potential there is still work to be done to increase demand. Policy continues to be the primary driver — especially the RFS. In 2012 when the RFS “kicked in,” according to Donnell Rehagen, interim CEO of the National Biodiesel Board, biodiesel production was at about 1.1 billion gallons. Over the next five years, production more than doubled (2.5 billion gallons expected in 2016) which

demonstrates the importance and impact of the legislation, he added. However, the Environmental Protection Agency (EPA) has been slow to set volumes at levels that match production — and do so on time. “We have a perpetual fight with the EPA regarding increasing volumes of the RFS so we can push demand to higher levels,” Rehagen says. NBB has requested the EPA set the 2018 Advanced Biofuel provision at 4.75 billion gallons and the biomass-based diesel provision at 2.5 billion gallons. Current estimates from the EPA are only four and 2.1 billion gallons respectively. In addition, Rehagen expects 2018 volumes to be finalized by November, another small “win” for the industry getting the EPA close to “on-time.”

Linking Iowa soybean producers to global markets

AGP’s Export Terminal Port of Grays Harbor Aberdeen, WA

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A Symbiotic Relationship By Matthew Wilde

on’t tell Iowa farmers and consumers what happens in Florida or Taiwan doesn’t affect the way they do business, their bottom line or what they eat. There’s a growing trend of states and countries dictating what food is grown, how it’s produced and what information is provided to the public concerning both. In many cases, well-funded activist groups play a big role in the process. Rules and policies concerning labeling and acceptance of genetically modified organisms (GMOs), sow gestation stalls and cage-free egg production and are just a few that impact society and Iowa soybean farmers. “I’m afraid outside forces are putting up roadblocks to efficient, safe and affordable food production,” says Jeff Jorgenson of Sidney, Iowa Soybean Association (ISA) director and past Supply Committee chair. Ninety-six percent of the state’s soybeans are genetically modified, primarily to tolerate herbicides, according to the latest government data. GMO labeling and

acceptance influences exports, demand, sales and prices. ISA soybean utilization research indicates nearly 82 percent of the 462 million bushels of soybeans produced annually in the state, based on a five-year average, are crushed to make soybean meal and oil. Nearly three-quarters of the crush is fed to livestock, primarily pigs and poultry. Consequently, anything that hurts egg and pork production is bad for soybean farmers. Anything that increases production costs often lead to higher food prices. “It’s producers and consumers, especially the ones who can’t afford higher food prices, who will pay,” Jorgenson says. “It could get very interesting in the coming years.”

GMO labeling and acceptance

Despite two decades of raising GMO crops with no medical issues connected to consumption and thousands of independent and scientific studies touting GMO safety, there’s still apprehension by some people and countries.

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Jeff Jorgensen, ISA director from Sidney

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Vermont passed a GMO labeling law that went into effect July 1 forcing Congress to pass a nationwide rule — applauded by the American Soybean Association — avoiding a possible patchwork of state standards. The Vermont rule required clear labeling on the package of items containing GMOs, while the national standard gives companies the option of providing only a QR code to be read by smartphones or a toll-free number to call for more information. Worldwide acceptance of GMOs is a work in progress, according to the U.S. Soybean Export Council (USSEC). The European Union has a very restrictive import and use policy, some countries in Africa ban them all together regardless of food insecurity concerns and China — a major food importer — buys GMO soybeans but its approval system for new traits is often slow and a cause for concern. USSEC CEO Jim Sutter says the organization continually works to educate consumers about the safety and benefits of GMOs. He says there’s plenty of successes and work to do. Taiwan, Sutter says, is a perfect example of the latter. The nation imports about 60 percent of its soybeans from the U.S. or more than 56.2 million bushels, according to the latest industry reports. It used to sort commodity beans, using larger ones with good color to make food products like tofu and soy milk and the rest were crushed for livestock feed. Earlier this year, Taiwan implemented GMO labeling and banned GMOs in school lunches based on fear and not facts, Sutter says. It has disrupted the entire import and food supply chain. “We don’t know yet if we will lose market share,” Sutter says. “Taiwan has been a good market for us for years. My hope is they will just import more U.S. non-GMO soybeans at a premium price, which can be an opportunity for producers.”

Gestation stalls

Closer to home, states and some companies are dictating production practices on the farm. Nine states, led by Florida, have banned the use of gestation stalls in the name of animal welfare. Numerous restaurant chains and food retailers have

announced they will only source pork from farmers that comply. The nation’s largest pork producer, Smithfield Foods, will phase out stalls by 2022 in its own facilities. The company is asking hog suppliers to do the same. This adjustment in production practices involves significant changes to buildings, many of which have a life span of up to 30 years. According to industry estimates, it could cost more than $3 billion for all sow facilities to be retrofitted. The National Pork Producers Council (NPPC) says gestation stalls provide a safe environment for pregnant sows. Stalls prevent fighting and allow for individual feeding. Dallas Hockman, NPPC vice president of industry relations, says

to stand up, lie down and fully extend their wings. Some food retailers and restaurants are requiring that as well. ISA CEO Kirk Leeds says the cagefree push could have a significant impact on Iowa as the largest egg producer. It increases production costs, retail prices and reduces consumer choice. If Iowa producers are forced to go cage free or reduce the number of birds in a cage, industry officials say laying facilities in the state would have to be heated because hens couldn’t keep warm enough on their own. That would mean higher production costs that would be passed on to the consumer. Reports indicate cage free eggs cost two or three times more than conventional counterparts. “Would egg production in Iowa still be

Jim Sutter, USSEC CEO

farmers should have a choice of production methods since there's pros and cons to group housing and stalls. Group housing takes more space to raise the same number of hogs. Hockman says bankers may be hesitant to finance retrofitting of existing facilities since it doesn’t enhance production or efficiency. “It’s a hard sell,” Hockman says. “There’s no question anytime outside influences affect production practices, it’s a concern for us. Our worry is the precedent it sets going forward (for all of agriculture).”

Cage-free eggs

California requires all eggs sold in the state must be from cage-free operations. Or, hens need enough room in cases

competitive or would production move out of the state or out of the country?” Leeds asks. “It’s a possibility. I’m not convinced people want to pay for eggs not produced here or in the Midwest.” Less hens or moving egg production out of state would curtail local demand for soybean meal. “It would be a huge impact. Basis would widen meaning less income for soybean farmers,” Leeds adds. Transparency in food production is one of the best ways farmers can help control their own destiny, Leeds says. The work of the Iowa Food & Family Project does just that. “Open doors and science-based information makes us credible to hopefully have a say in legislation and regulations that affect agriculture,” he says.

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Issue: Cage-free eggs Synopsis: In 2008, California passed the Standards for Confining Farm Animals initiative. The proposition prohibited the confinement of certain farm animals in a manner that does not allow them to turn around freely, lie down, stand up and fully extend their limbs. The key portions of the statue became operative on Jan. 1, 2015 when farming operations had to implement new space requirements for their animals.

Intended results: Animals under stress, like intensive confinement, have compromised immune systems and are highly susceptible to pathogens, like Salmonella. Supporters of the proposition say increased density of birds in cages leads to increased incidence of Salmonella in eggs. Cage-free facilities are also supposed to be easier to keep clean and have lower feces-related diseases.

Unintended consequences: According to the United States Animal Health Association, hens housed in cage-free and free-range housing systems have a substantially higher risk of exposure to Avian Influenza, Exotic Newcastle Disease, Salmonella and other wildlife diseases. A study from the University of California Agricultural Issues Center concluded that cage-free systems incur production costs that are at least 20 percent higher than traditional cage housing systems. For small egg producers, this transition may not be financially feasible.

Farmer impact: “It seems as if everyone likes the idea of cage-free eggs. Big outfits have said that’s what we want. But no one has stopped to ask the question of how many eggs is that going to require,” says Iowa Secretary of Agriculture Bill Northey on the growing number of commitments by supermarkets, restaurants and other marketers to provide cage-free eggs. Compiled by Carrie Laughlin

issue: GMO acceptance Synopsis: Twenty years ago the first biotech crop was commercially

planted and sold. Since then use of biotechnology to make crops tolerant of herbicides and environmental conditions such as damaging insects, diseases and drought has exploded in the United States. Records show 94 percent of soybeans and 93 percent of corn grown in the country are GMO. Transgenic traits have contributed to more abundant, high quality and sustainable crop production. The result is less tillage, chemical applications and greenhouse gas emissions. Despite a two-decade record of safety and thousands of independent and scientific studies backing that up, there’s still apprehension by some people and countries.

Intended result: GMOs help provide abundant, sustainable, affordable and healthy food to feed more people more sustainably and affordably.

Unintended consequence: Nations that ignore science and make decisions based on emotion concerning GMOs perpetuate food insecurity by blocking or curtailing their use.

Farmer impact: “I’m afraid if road blocks are put up we won’t have as good of genetics in the future. We may have grain surpluses now, but we will need to increase production on land currently available to feed a growing world. We won’t be able to do that without biotechnology,” says Jeff Jorgenson, Iowa Soybean Association (ISA) director and past chairman of the ISA Supply Committee. Compiled by Matthew Wilde 1 8 | N OV E M B E R 2 0 1 6 | I A S OY B E A N S .C O M

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Issue: Sow gestation stalls Synopsis: Nine states since the early 2000s have banned or are phasing out the use of gestation stalls. Deemed as animal cruelty to not allow sows the opportunity to move more freely, more people —including restaurant chains and food retailers — are calling for pork producers to stop using gestational stalls.

Intended result: Phasing out gestation stalls is the humane and compassionate thing to do.

Unintended consequences: Gestational stalls minimize aggression, injury and competition while allowing individual nutrition management, but suppress normal behavioral expressions. Group housing is less restrictive, but could lead to increased lameness and aggression. Costs for farmers to transition from crates to pens include investing in refurbished or new buildings and equipment and the potential differences in sow and pig productivity during the transition.

Farmer impact: “There are benefits and disadvantages to all types of sow housing and each owner has to make the call on what system works best for their sow farm. We use individual maternity pens because we want to be able to care for each animal individually. If there's an issue with a sow, such as illness, we can immediately get her the help she needs. A key indicator of stressed out and uncomfortable sows is low productivity and loss of condition and that is the last thing a pork producer wants. Sows feel safe and comfortable in an individual maternity pen. Too often the general public formulates opinions on edited 10-second videos and sound bites, while pork producers have been working with the animals for years to provide the best environment to be healthy and productive,” says Dave Klocke, the owner and operator of a 2,700 head farrow to wean operation near Templeton, Iowa. Compiled by Carrie Laughlin

Issue: GMO labeling Synopsis: After years of debate and legislative stalemates, President Obama signed bill S.764 that puts into place a federal standard for foods that have been made with genetically modified organisms (GMOs). Consumers will be able to scan a QR code to learn if the product contains GMOs. Meat, dairy, and eggs fed genetically modified corn and soybeans are exempt.

Intended result: Though GMOs have been proven safe countless times in thousands of studies and undergo rigorous testing, some consumers are demanding to know more about what is in their food, and how it's grown. This law will allow more stability in the marketplace for both producers and consumers while avoiding costly implications of policies that vary from state to state.

Unintended consequences: Signed in July 2016, the U.S. Department of Agriculture has two years to author the rules needed to implement the legislation. Those against the bill are calling for the President to veto it as they argue it only benefits Americans with the means for smartphones and an Internet connection.

Farmer impact: “Helping consumers understand who is growing their food and how it’s being produced goes beyond slapping another label on a product package. If we’re going to build consumer confidence in GMO technology, we as farmers need to engage in a conversation and work to build their trust. We can do that by describing the benefits of GMOs on our farms and by showing consumers that we’re so confident in the safety of GMOs that we feed our families foods with GMO ingredients,” says Julie Kenney, who grows corn and soybeans with her husband Mark in Nevada, Iowa. Compiled by Carrie Laughlin

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Tim Recker,

ISA member from Arlington

PLUGGING THE LEAK By Matthew Wilde

owa farmers and landowners are on a journey. It’s a quest to re-engineer the landscape and adopt conservation practices to reduce nitrate pollution in the state’s waterways. Society wants it, and so do the people who work and own the land and contractors that move and reshape it. Iowans, with the blessing of the government, decided more than a century ago to install agriculture drainage tile to transform mosquitoinfested swamps and prairie potholes into some of the most productive farmland in the world. It worked. Iowa is the No. 1 corn producer and historically tops in soybeans. For all the benefits of drainage tile — higher yields, less soil compaction, more timely field operations, risk management

— there are unintended consequences. Turns out the clay tile buried decades ago and the plastic corrugated tubing used today are a convenient pathway for transporting nitrates. That wasn’t known long ago, but it is now. “Our corn and soybean system is leaky,” says Matt Helmers, an Iowa State University (ISU) professor, agriculture engineer and drainage expert. It’s a leak that can be fixed, or at least mitigated, with a lot of replumbing, experts say. Luckily, there’s a guide in place and the Iowa Soybean Association’s (ISA) Environmental Programs and Services (EPS) team to provide directions. “The Iowa Nutrient Reduction Strategy serves as a roadmap,” says Chris Hay, ISA senior environmental scientist. “There isn’t just one way to

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reduce nutrient losses, but multiple routes we can take. The strategy provides options and lays out the science behind it.” Established by the Iowa Legislature in 2013, the strategy is a sciencebased initiative to reduce nitrate and phosphorus loads entering waterways by 45 percent from point and nonpoint sources, such as farmland. Practices outlined in the strategy proven to reduce nutrient loss include saturated buffers, bioreactors, wetlands, cover crops and conservation tillage, among others. Hay says there’s a window of opportunity for landowners and farmers to voluntarily choose the best path to improve environmental and agronomic performance. But it won’t stay open forever. Agriculture drainage tile, referred to as “serpents of doom” by Des Moines

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Water Works CEO Bill Stowe, is often at the heart of Iowa’s water quality debate. The Des Moines Water Works sued three northwest Iowa counties claiming underground drainage tiles in 10 drainage districts under their control are funneling high levels of nitrates into the Raccoon River, a primary source water. The utility says it cost $1.5 million last year to run its nitrate removal system to ensure levels didn’t exceed the government safe standard of 10 milligrams per liter in drinking water. The water works seeks financial Chris Hay relief and tiles to be considered point sources under the Clean Water Act, which would require federal discharge permits. That would likely lead to more regulations on production agriculture, which Stowe relentlessly advocates for. “If the public doesn’t see change, the drumbeat for government regulation will only increase,” Hay says. “If we show progress, I believe we can stave off the heavy-handed approach.”

Think BIG

Drainage tile enhances productivity, profit potential and land values so it’s not going away. In fact, farmers and landowners continually install new tile systems and replace obsolete ones. Helmers says that’s the perfect time to install saturated buffers, bioreactors, wetlands and other practices. Infield and edge-of-field conservation practices can be added to existing tile systems as well. “There’s a real opportunity to implement nitrate reduction practices and (landowners) should be looking to do it,” he says. The soybean association’s EPS team is available to provide technical assistance to farmers and landowners. Services include water monitoring, watershed and farm planning and identifying cost-share funds to increase the pace and scale of conservation practices on the ground. Hay estimates about half of Iowa’s 24 million row-crop acres are artificially

drained. State and ISU officials say it’s going to take billions of dollars to get enough conservation practices on the ground to meet the goal of the strategy. To treat more acres quickly, some farmers are thinking big. Really big. Wetlands can treat hundreds to more than a thousand acres. Research shows mega saturated buffers and bioreactors, where applicable, can treat water from double to triple the amount of acres of normal sized counterparts. Most bioreactors and saturated buffers typically treat 80 acres or less. ISA member Tom Vincent of Perry, with cooperation from a landlord, recently installed a mega saturated buffer to treat tile water flowing from 120 acres of ground he partly owns and partly rents. Instead of water flowing right into a drainage ditch, eight control structures will funnel it to a riparian buffer that acts as a nitrate filter, reducing concentrations by up to 50 percent, according to the strategy. “Public pressure is coming to bear. Farmers need to do everything we can to demonstrate we’re taking steps to address the problem,” Vincent says.

Playground

The Iowa Land Improvement Contractors Association (LICA) is

educating members about conservation practices to better communicate with clients. The association has an 80-acre demonstration farm near Melbourne to teach contractors the latest installation techniques, test new practices and show people what can be done. “It’s our playground to test and develop innovative ideas to be put on working ground,” says Tim Recker, owner of Recker Excavating of Arlington. “It has every conservation practice known to man. Farmers have to see, feel and understand conservation practices to say, ‘Oh, I can do that on my farm.’ “That’s been our push at LICA,” he continues. “To get new practices out there.” Recker, an ISA member, is leading by example. He installed a saturated buffer on his farm to treat water leaving tile lines on 80 acres of ground, and hosted a field day to show it off. That’s in addition to planting cover crops and using other conservation practices. Bulletproof ag drainage systems are essential to remaining a productive society and improving water quality, Recker says. People might think that’s an oxymoron, he adds, but plants in waterlogged soil won’t utilize nutrients properly, which will leach into waterways. “If you want productive soil, you need drainage,” Recker says. “Yes, nutrients can leak out. But now we have the ability to mitigate that.”

Tom Vincent,

ISA member from Perry

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In a State Divided,

COLLABORATION Multiplies By Dorothy Tate

Farming is such an integral part of our economic engine within the state. We need to figure out how to work through that and do it as a team as opposed to taking shots at each other. — Christine Hensley, Des Moines City Council member

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debate about water quality has gained momentum across Iowa and Iowa soybean farmers are right in the middle of it. Last year, the Des Moines Water Works (DMWW) sued three northern Iowa counties for alleged water pollution, a move that challenges the Environmental Protection Agency’s Clean Water Act and farmers’ way of life. The suit not only broadened the divide between rural and urban, but created a rift among Diana Wilson urban entities, water works rate payers and policy makers. While the case is currently stalled in the courts, soybean farmers across Iowa, and particularly those in the three counties named in the suit — Sac, Buena Vista and Calhoun — are watching, waiting and acting to defend themselves and their livelihood.

Consequences of division

Beyond upstream activities and farmer’s actions, attention is now focused on the operations of DMWW. Questions are being asked including: Is the DMWW board acting responsibly? Are water rates fair? Are other water sources available? Christine Hensley, Des Moines City Council member, says that questions around the structure of the DMWW board are warranted. “You have absolutely no accountability by the DMWW board individuals once they are appointed,” Hensley says. “They are not elected officials, but they have the ability to raise rates and come forward with decisions that can have a huge impact on everyone working with water works.” “Everyone” includes not only Des Moines rate payers, but those in surrounding communities, Hensley points out. She cites that Des Moines uses 40 percent of the water provided by DMWW; suburbs consume the rest. “At DMWW specifically there are some real issues right now,” Hensley says. “West Des Moines, Waukee,

Urbandale and others are looking to setand it has firmly taken root and picked up their own water facilities, and I think up speed — especially between urban that is very, very harmful, particularly to municipalities and agriculture. the people remaining within Des Moines “There is no question we need to — it will do nothing but increase rates.” work with agriculture,” Hensley says. In August, West Des Moines Water “Farming is such an integral part of our Works and the City of Waukee, both economic engine within the state. We customers of DMWW, announced they need to figure out how to work through will commission a study to identify and that and do it as a team as opposed to evaluate additional water sources. taking shots at each other.” Diana Wilson, West In true Iowa fashion, collaborative Des Moines Water Works projects between upstream farmers general manager, says and downstream stakeholders began fiscal responsibility and long before the lawsuit was filed. One population growth are example is the Middle Cedar Partnership key drivers. In making Project (MCPP), which initiated the decision, West Des watershed plan development in five Moines referenced two targeted subwatersheds upriver from recent water resource Cedar Rapids with the goal of controlling studies showing rising flooding and improving water quality. water demands for the “The MCPP with Cedar Rapids is city could outpace water supplies by a great example of how they valued as early as 2018. This concern — on agriculture and worked to find top of a double-digit rate increases solutions for all involved,” says Carol from DMWW and additional projected Balvanz, ISA policy director. “It shines increases — moved the city to action. the light on Cedar Rapids’ successes. “Our board is concerned about the They found a solution that doesn’t water treatment capacity issues raised involve lawsuits.” by two different studies in the past year. Other innovative solutions have Both underscored that current capacity sprung up around the state. From a will not meet future demand,” Wilson multi-group initiative led by the Greater says. “The trajectory of rates is also Des Moines Partnership to exploring a concerning. When DMWW raises its unique funding source for additional prices, we have little choice but to pass urban-ag projects, stakeholders across on at least some part of those increases the state are working together to find to our ratepayers. Supply, reliability and solutions. quality are all factors we must evaluate.” “The lawsuit is a distraction, and An alternate source of water could we are focused on and working in help West Des Moines communities meet future demand, where they want to while providing build relationships additional flexibility to that work toward best use water assets progress,” Balvanz and serve a growing says. “ISA is customer base, Wilson committed to says. Additionally, she helping farmers Carol Balvanz cites bringing another get more practices source of capacity on installed in the line would decrease landscape. To do some of the demand on DMWW and this we need collaboration as well as a help meet the water needs of the region. dedicated source of funding.” As the collaborative efforts move Consequences of collaboration forward, the lawsuit progresses and Meanwhile, the Iowa Soybean the Iowa legislature convenes for Association (ISA) is a key player in the 2017, the conversations taking place conversation about positive collaborations will continue to have additional and conservation. The conversation repercussions for all involved — good was already taking place across Iowa and bad. N O V E M B E R 2 0 1 6 | I A S OY B E A N S . C O M | 2 3

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Are Soybean Farmers too

DEPENDENT ON CHINA? By Easton Kuboushek

he year is 1978. Half a world away, an announcement is made that will revolutionize global trade and open the largest proverbial door soybean farmers could hope for. China, in a strategic move to bring its economy out of turmoil and isolation, opened its boarders for trade with the west. Shortly after, U.S. soybean industry and farmer-leaders moved China to the top of the market development to-do list. They recognized (but perhaps underestimated) the opportunity for soy in the world’s most populous nation. “There’s really a lot of foresight here if you think about farmers knowing that eventually China would not be able to feed its own people or source enough protein,” says Kirk Leeds, CEO of Iowa Soybean Association (ISA). At the time, China was a net-exporter of soybeans. Farmers through the American Soybean Association and state checkoff programs began building a partnership with China. In 1982 the first office was opened in Beijing to teach the basics of animal nutrition and productivity gains by using soybean meal from the U.S. in feed rations. These effects expanded

when the national checkoff program began in 1991. By 1996 China was importing U.S. soybeans. In 2001, China joined the World Trade Organization and soybean demand began to boom. Over the next decade, China’s population and economic prowess flourished as did the need for highquality protein found in soybeans. Paul Burke, Regional Director North Asia, U.S. Soybean Export Council (USSEC) attributes the success in China to being in the right place with the right programs at the right time. “I believe we filled a gap in terms of being a catalyst to bring information, technology and skills at a time when China really lacked it,” says Burke. “Our investments and that of other grain organizations really made a difference as to how quickly China moved forward in terms of modernizing its food and animal productivity.” Today, China buys 60 percent of the soybeans traded in the world and

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the U.S. holds a 37 percent piece of the pie. China imported 29.5 million metric tons (about 1 billion bushels) of U.S. soybeans in 2015, according to the U.S. Department of Agriculture. Iowa produces about 14 million metric tons of soybeans a year. To lend perspective, that means about one in every four rows of the soybeans grown in Iowa will go directly to China.

Unintended consequence

While the programs and checkoff investment have been an overwhelming success, the U.S. has become uncomfortably dependent on the Chinese, ISA leaders say. “The success of the checkoff program and the growth in China has been tremendous,” Leeds says. “But the unintended consequence is that we are now very dependent on the Chinese on a global basis for soybean demand.” Export demand continues to drive the price for U.S. soy and when one-fourth of all the eggs are in one basket — what happens if that basket goes away?

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“Given the fact that the Chinese buy 60 percent of all the soybeans traded in the world it would be devastating to the U.S. soybean industry, South American agriculture and I think it would be devastating to the Chinese,” Leeds says. “The reality is, should that market would go away, the Chinese would no longer have access to a high quality protein, which would cause incredible social unrest.” Leeds contends that a disruption to the Chinese market of this magnitude is unlikely, but it brings focus to an important tactic in remaining competitive — diversification.

Building diversity

In the same way farmers need to build diversity into their operation, the broader soybean industry must do the same. Diversification for soybeans means growing market share and creating new uses in current markets (like China and Europe) as well as building new markets (like India and countries in Southeast Asia). “We are continually trying to provide the Chinese with ongoing support so U.S. soybeans are the first choice,” says Leeds. “The work that we’re doing not only in pork and poultry production, but more recently aquaculture, is aimed at helping diversify that demand for protein within China.” A specific example is Intensive Pond Aquaculture, a technology USSEC brought to China to address bottlenecks in the Chinese aquaculture industry that threaten increased soy utilization. The U.S. is now bringing this technology throughout Asia.

Paul Burke, USSEC

Regional Director North Asia

Burke says sustainably produced soybeans helps build preference of U.S. soy, especially as compared to South America. The U.S. Soy Sustainability Assurance Protocol program adds no additional costs to the farmer, exporter or importer, but distinguishes U.S. soybeans for customers seeking food that is sustainably sourced along the entire supply chain. New markets are a priority for newly-elected ISA President Rolland Schnell of Newton. "China has been and will continue to be a valuable market for soybeans," says Schnell. "But ISA is also investing in other markets, big and small throughout Southeast Asia, to continue to build demand for U.S. soy." Southeast Asian countries including the Philippines, Vietnam, Thailand, Singapore, Malaysia and Indonesia show great promise for soybean demand. In 2015, the U.S. shipped

6.5 million metric tons to the region (about $3 billion in value) and holds a 33 percent market share and growing. Growth in Southeast Asia is expected to capture 82 percent of the additional meat consumption through 2021. Leeds and Schnell believe South Central Asia also shows potential for long term growth, especially India. India has the second largest population (about 1.27 billion) in the world and mirrors China 30 years ago: a large population that is protein-deficient, a growing middle class, and a current net exporter of soybeans. With some encouragement from U.S. market development teams, India could be the large new market for diversification soybean farmers have sought. "This is one of my biggest priorities as president and as an association,” says Schnell. “We need to emphasize demand issues because it means so much to our industry."

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PROGRESS Success is By Michelle Jones

A Kelvin Martin, cattle

producer from Nora Springs

s Iowans seek water quality enhancements, strong farmer leadership has one northeast Iowa watershed on-track — even ahead of schedule — to meet their water, soil and habitat improvement goals. The Rock Creek Watershed Plan was the first in the state written to address Iowa Nutrient Reduction Strategy targets, but the infrastructure to achieve these goals was not in place. Despite this challenge, local farmers are making progress through innovation and collaboration. “Rock Creek is a great example of farmers, landowners, agencies and other groups coming together and developing a plan,” says Adam Kiel, ISA operations manager of water resources. “It’s a great example of farmers taking a leadership role and embracing the plan.” The 25-year initiative calls for use of no-till or strip-till as well as cover crops and nutrient management on all cropland acres. Additionally, the watershed needs 25 bioreactors or saturated buffers, seven nitrate removal wetlands and 3,000 acres of controlled drainage.

In-field innovation

Many farmers in the watershed adopted no-till and strip-till in the late 90s and early 2000s, but the infrastructure wasn’t in place to transition the remaining acres. This created a new business opportunity within the area — custom strip-till. “When we start looking at the striptill and no-till, there’s equipment costs for farmers,” says Dean Sponheim, farmer from Nora Springs. “That’s where the custom strip-tilling came in to help some of these farmers look at it and feel it, before they invest in the equipment. We’ve also found that some of our smaller producers, who cannot justify the expense of the equipment, will continue to have us do it.”

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85% toward 5-year watershed plan goal The Rock Creek Watershed plan includes short and long term goals for nitrogen and phosphorus reductions. Farmers are ahead of schedule to meet their 5-year goal ending in 2018. Full implementation of plan is

5-Year Goal: 2014-2018 Businesses such as Johnson Chemical in Osage have been offering custom striptill services since about 2000. Bill Clark, owner, says “Mitchell County has really been strong on strip-till” and that the acres continue to increase. “I think more farmers are trying to do the best for the soil and to cut down on tillage trips,” Clark says. “We haven’t seen a yield drag or anything like that with the strips and it just saves a lot on labor and machinery costs.” Another area of innovation in the watershed has been cover crop seed production. Sponheim, a Pioneer Seed dealer, was approached by his neighbors to organize cereal rye seed production for the area. “We need seed produced for 45,000 acres of crop ground,” Sponheim says. “That will take about 900-1,000 acres of production seed to obtain that goal. You have to look at what the demand is going to be, how soon it’s going to increase, where it’s going to be planted and then you also need the facilities to clean that rye once it’s harvested.” Sponheim says demand for cereal rye seed has doubled each of the past three years and the trend looks to continue this year. Assisting with coordination, Rock Creek project coordinator Tracy Church developed a “one-stop cover crop shop” this year. When producers signup for cost-share, they are able choose their seed and application provider. From that point, Church coordinates the remaining details. “We created shape files or maps the chosen provider uses to apply the cover crop,” Church says. “The intention of the one stop shop was to help producers by allowing them to provide

expected to take 25 years.

all the information at one time and at one location — making the cover crop process more efficient.” Kelvin Martin, a cattle producer from Nora Springs, raises some of the cover crop seed for the watershed, but he’s also working with Sponheim to custom drill cover crop seed following soybean harvest. “Dean brought up doing no-till drilling after his beans come off,” Martin says. “I mentioned I had a drill and that I’d be interested in something like that. We already do that with other crops and cover crops. That fits into my cropping system. I had the drill and saw more opportunity to get more use out of it.”

Edge-of-field assistance

Supporting the in-field work of the Rock Creek farmers, ISA received a grant through the Iowa Department of Agriculture and Land Stewardship (IDALS) Water Quality Initiative to install a combination of 25 bioreactors

or saturated buffers during the next three years. “We’re helping locate potential bioreactor and saturated buffer sites, helping farmers through the design and construction process and providing cost-share to construct the practices,” Kiel says. “We’re also monitoring those sites to track performance.” In addition to these installations, the Mitchell County Soil and Water Conservation District received an IDALS grant for conservation practices. Also, a nitrate removal wetland was completed in 2015. The progress occurring in the Rock Creek Watershed would not be possible without farmer leadership. By December 2016, the Rock Creek farmers and supporters expect to nearly complete the goals outlined for the 2014-2018 time period with approximately 4,000 acres seeded to cover crops, eight bioreactors or saturated buffers installed and one nitrate removal wetland restored. All agree this process can be replicated statewide to achieve Iowa’s water quality goals. “It’s no secret,” Kiel says. “It’s a group of farmers taking ownership and leadership. They are engaged in the project. That’s what we’d like to see across Iowa — farmers taking leadership positions and working with the watershed coordinators, soil and water conservation districts, NRCS and others to implement practices across the landscape.”

Dean Sponheim,

farmer from Nora Springs

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Learning Cover Crop

CONSEQUENCES By Allison Arp

armers are lifelong learners. The latest lesson for many of them? Cover crops. According to the MerriamWebster dictionary, the term consequence is “something that happens as a result of a particular action or set of conditions.” In general, consequences are considered negative, but sometimes there are unintended positive outcomes. Most situations have both. Students graduating from college have the negative consequence of student loans, but the positive consequence of getting a degree. Farmers experimenting with cover crops for the first time are in a similar situation. While there are many known benefits to cover crops (nitrate fixation, erosion control, water holding capacity and improved soil health) there are also unintended consequences of the practice, both good and bad.

In addition, cover crops respond differently depending on how and when they are seeded. Weather conditions, crop rotations and other management practices add more complexity. What one farmer experiences may be vastly different from another. A positive consequence experienced by many farmers has been weed suppression. While this practice was used a hundred years ago, with the emergence of herbicides it had been forgotten for decades. “We’ve heard from farmers across the state who are surprised that they can cut down on herbicide applications,” says Nathan Paul, Iowa Soybean Association (ISA) OnFarm Network operations manager. “Cover crops suppress weeds through

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altering microbial activity to put some weeds at a growth disadvantage.” Paul says that to balance out the positives cover crops bring to fight against weeds, a small portion of the time the cover crop seed may be contaminated with weed seeds. “As with wildlife habitat seed mixes, some cover crop seed may contain a very small portion of weed seed,” Paul says. “While it can typically be managed with the same herbicide plan used to burn down winter cover, certified cover crop seed can reduce the risk through their more extensive quality control during the cleaning process.” One mostly negative consequence of cover crops is potential increase in insect pressure. “Fall army worm and black cut

worms have become problematic in some cover crops fields,” says Tristan Mueller, ISA On-Farm Network operations manager. “Cover crops create a ‘green bridge’ that allows the insects to feed on plants where there was previously bare ground.” A consequence that can be positive or negative depending is disease pressure. Research from Iowa State University (ISU) showed an increase of seedling diseases when corn was planted after cereal rye. Cover crops also have the potential to reduce the impact of sudden death syndrome and soybean cyst nematode, both of which are huge yield robbers for Iowa farmers. To investigate this further, research

is being conducted by ISA and ISU to better understand the effect cover crops have on disease pressure. Some farmers choose to plant cover crops that winter kill, such as oats and radish. These varieties typically won’t survive the cold elements of Tristan winter. So come Mueller springtime, all farmers have to deal with is the residue left behind, much like a standard no-till operation. While it’s hard to get all the benefits because of the short growing season post-harvest, not having to deal with termination in the spring is considered a benefit in itself by some. On the other hand, cover crops is a practice in which the longer it is in place (the number of days the

crop provides cover or the number of years planted consecutively) the more benefits can be reaped. Some farmers get what they need out of their cover crops in the fall by using them for forage. Others want their cover crops to come back up in the spring to prevent erosion from heavy rains. For those farmers, termination could be an issue. Weather can cause delays getting into the field to terminate. Rainy weather or a wet winter could also lead to colder and wetter soils, preventing farmers from getting into fields. While wet and cold soils may cause problems in the spring, the improved water holding capacity may provide moisture to the plants later in the year, which is especially helpful during dry summers. When trying something new, farmers must weigh the pros and cons. But even then, there are unknowns that won’t be on the list. It’s all part of the learning process.

We’ve heard from farmers across the state who are surprised that they can cut down on herbicide applications. Cover crops suppress weeds through altering microbial activity to put some

”

weeds at a growth disadvantage.

— Nathan Paul, ISA On-Farm Network operations manager

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LANDOWNERS WANTED By Matthew Wilde

im Cownie is a visionary. The successful Des Moines businessman understands the best things in life don’t always have an immediate reward. Sometimes you have to invest in the future. Cownie followed that path when he and good friend Jim Hoak started a cable television company in the early 1970s. It was a risky venture considering paying for television was rare and a lot of costly infrastructure was needed to reach the masses. After many lean years, Heritage Communications grew to be one of the largest, most successful cable television companies in the nation. The cofounders sold it in 1987. The “retired cable guy” as he calls himself is following the same path when it comes to farmland expenditures to improve water quality and soil health.

Cownie is planting cover crops and grass buffer strips. He’s installing a bioreactor, tile and control drainage structures and other conservation practices on his land that don’t always have an immediate payback. He says the long-term investment will pay dividends for the state and the health Jim Cownie of the land. And, it’s just the right thing to do. “I think we have water quality issues in Iowa and I don’t want to see the government step in and mandate arbitrary solutions,” Cownie says. “If enough people voluntarily do this, we can eliminate that possibility or make it less likely. That’s what motivated us to go forward.

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“I hope this will encourage others to further commit to conservation,” he adds. The Des Moines Water Works is suing three northwest Iowa counties for allegedly allowing nitrates to pollute the Raccoon River, a primary source water for the utility. Algae blooms, largely blamed on excess phosphorus, periodically occur in lakes. The aquatic “dead zone” in the Gulf of Mexico is often blamed on nutrient loss from farmland and Iowa is considered a major contributor. To address nutrient issues, the state implemented the Iowa Nutrient Reduction Strategy in 2013. It’s a sciencebased initiative to reduce nitrate and phosphorous loads entering Iowa waterways by 45 percent from point and nonpoint sources. Cownie enlisted the help of Peoples Company of Clive and two businesses based in Adair, Agri Drain Corp. and Ecosystems Services Exchange (ESE), to do his part in meeting the goals of the strategy. Peoples’ approach to farmland investment and management is unique. The company believes income and

Investing Checkoff Dollars

appreciation go hand-in-hand with conservation, water quality, soil health and sustainability. It’s one of the reasons Cownie — who owns thousands of acres of crop and recreation ground in central Iowa — hired the company. Peoples President Steve Bruere says all landowners — whether active farmers or absentee owners living in California or New York — have to embrace and implement conservation practices outlined in the strategy like conservation tillage, saturated buffers and others for it to work. If not, heavyhanded, one-size-fits-all government regulations could be implemented in other parts of the country. “If owners want to do what’s right ethically and economically, they should be called on to protect the ground,” Cownie says. Bruere hopes more non-farmer owners feel that way. More than 60 percent of Iowa’s farmland is rented, records shows. Bruere says tenants on a year-to-year lease have little incentive to spend thousands or tens of thousands of dollars on conservation practices on ground they don’t own. That’s why owner participation is critical to the success of the strategy. “The way I pitched it to Jim and his son, Paul Cownie, is let’s add more drainage tile and make the farm(s) more productive while doing something positive for the environment,” Bruere says. “Financial performance and environmental performance are linked.” Soil loss and profitability studies are being done on all the tillable acres Cownie owns. That will determine what conservation practices are best suited for particular areas based on soil type and topography while not sacrificing and likely improving economic and agronomic performance.

Jace Klein (right) of Ecosystem Services Exchange of Adair explains how a water control structure provides environmental benefits to clients Paul (far left) and Jim Cownie, who own farmland in central Iowa.

Here’s the plan for Cownie’s into revenue positive and good for the Hogback Bridge Farm near Winterset, environment. It’s a win-win,” Bruere which is 450 acres with 130 tillable: says. • Cover crops on tillable acres, which Charlie Schafer, president of Agri reduce nitrates by up to 31 percent, Drain and founder of ESE, which according to the strategy. designs drainage systems, says ag • Drainage tile with Agri Drain water drainage has gotten a bad rap lately. control structures to eliminate wet Most people don’t understand the spots and improve productivity. need and how valuable it is to the • Direct nutrientoverall health and laden water performance of the through a land, he says. bioreactor — an A well-drained underground field that employs trench filled with a systems approach Steve Bruere wood chips that like what Cownie reduces nitrates is doing, which by 43 percent, on includes in-field average, according and edge-of-field to the strategy. practices, is a much That alone could cost about $10,000. cleaner environmental unit that’s more • Take historically unprofitable acres productive compared to an undrained out of production and convert into field, Schafer says. grass buffer strips. Enroll that land in “It’s wonderful to find a landowner the Conservation Reserve Program. and family that are committed to preservation and environmental “Instead of losing money on some outcomes,” he adds. “Hopefully it’s an acres and trying to spread it over the inspiration to other landowners.” rest of the operation, it can be turned

I think we have water quality issues in Iowa and I don’t want to see the government step in and mandate arbitrary solutions. If enough people

”

voluntarily do this, we can eliminate that possibility or make it less likely. — Jim Cownie, farmland owner and Des Moines businessman/developer

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THE STORY BEHIND

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