Iowa Soybean Review, October 2016 by Iowa Soybean Association

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

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Talking out the Tough Issues

CRITICAL CONVERSATIONS: October 2016

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Iowa Soybean Association

Brian Knudtson, vice president of ag lending at MBT Bank based in Forest City, is also a farmer. He encourages constant, open and honest communication between himself and farm clients, believing it is crucial to help both parties make it through periods of low crop and livestock prices.

October 2016 | Vol. 29, No. 1

12 Don’t Talk Now, Pay

20 On the Home

critical conversations can be costly.

members in farming conversations.

Later Putting off or not having

18 Building Neighbor

Relations Don't let the coffee shop tell your farming story for you.

Front: Engaging family

22 Making dollars and ‘Sense’ with

international customers.

About the Cover:

Putting off or not having critical conversations can be costly. Farmers, bankers, agronomists and input suppliers say it’s important that everyone involved in financing and growing a crop is on the same page, especially during tough economic times. If not, the consequences add up for all involved — from lost revenue to possibly losing a client and trust.

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Iowa Soybean Association

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

Critical Conversations We all have had them — critical or crucial conversations. By definition, these conversations are important and can sometimes have long-term consequences. Late this summer, I had the honor of officiating the wedding of my son and new daughter-in-law. As part of that happy occasion, I was able to provide advice and counsel as this special couple began their married life together. It was a unique opportunity to engage in a critical conversation about their future. But as a parent, I have had lots of opportunities to have critical conversations with my four kids as they have grown into young adults. Like other parents, I know that I didn't always handle these conversations well, but at least I always had Mom alongside of me to clean up my misfires. This issue of the Iowa Soybean Review is focused on the critical conversations that farmers need to have as they continue to navigate these challenging times in production agriculture. In conversations with lenders, accountants, suppliers, landlords, partners, neighbors and family members

farmers are sharing and gathering critical information that, in many ways, will determine the success of their farming operation. Certainly this is not new, but I would suggest that the importance of having the necessary skills to have these critical conversations has never been greater. As farming has become more complicated, the number of individuals and entities that farmers interact with has expanded. The Iowa Soybean Association (ISA) is also engaging in critical conversations with soybean farmers in Iowa as we continue to gain more and more members as we seek to significantly increase our engagement with these farmers. This fall, we are launching a new approach to membership by giving farmers a chance to become official Advocates for ISA and its programs and legislative priorities. Our staff are preparing to have this important conversation with hundreds of farmers across the state. Send me an email or give me a call if you would like to have a conversation about these changes and these new opportunities. I look forward to hearing from you.

American Soybean Association Directors Morey Hill, Madrid Wayne Fredericks, Osage Brian Kemp, Sibley 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 | O C TO B E R 2 0 1 6 | I A S OY B E A N S .C O M

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

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CAROL BALVANZ, ISA Policy Director

Ask the Important Questions. . . By Carol Balvanz, Policy Director Legislative conversations are no different from any other conversations. Think about the conversations you enjoy. They usually don’t involve someone trying to dominate you with their viewpoint. Yet our legislative conversations often sound like that. When we attend a legislative coffee or meet with a legislator at the statehouse, we get our “elevator speeches” ready, realizing we may have only two or three minutes of that legislator’s time. In the process, we end up talking AT legislators rather than WITH them. It’s not usually a productive strategy. What if we started looking at legislative conversations differently — more as fact finding missions? Think about it. On any given issue, we can usually sort legislators into three camps. There are those who support our position. There are those who oppose our position. And then there are those who are still making up their minds. We probably don’t need to spend much time talking to the first group, and we probably won’t change many minds in the second group. So if we target the third group, what would make them interested in what we have to say? Legislators like to talk. So in the spirit of having a “critical conversation,” — we should let them. Instead of us preparing “talking points,” maybe we need to write down “important questions.” Maybe

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instead of reading our notes, we should be taking notes. Perhaps instead of trying to convince them to support an effort, maybe we should ask what questions they have or what information would help them make up their minds about our issue? Their answers would give us valuable intelligence about what it will take to turn an “undecided” into a “yes.” ISA doesn’t have a Political Action Committee. We don’t have campaign cash to offer legislators. We’ve always told them that instead of PAC contributions, ISA provides reputable information and contacts with knowledgeable farmers on important issues. In order to do that, we need to know what they need. So the next time you talk to a legislator, please start by asking critical questions about the issues — and keep asking them until you have uncovered the next steps we need to take with that legislator. Take good notes, and share them with us at ISA. We’ll work to get you the information you need to strengthen your legislative communications. Overall, our goal is to become a trusted source of information for legislators. Trust is built on two-way conversations with each person valuing the other’s opinion (even if they don’t agree with it.) We’re looking to lengthen the list of legislators who trust us enough to call when they have questions. We hope you’ll help us do that.

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ISA's Stance on Eminent Domain ISA Statement of Principles

We believe government should concentrate more on the management of currently owned government land and reduce the effort to acquire more public land. We oppose the use of eminent domain to acquire private land for economic, conservation, landfill, road building, utilities or recreational interests without just compensation.

2013 Energy Infrastructure on Private Land We support the upgrading of our nation’s energy infrastructure grid. However, we are concerned that farmers are not fairly compensated for residual impacts on crop land production and value as well as restrictions on land improvements. We support efforts to protect farmers’ property rights within the easement and land

acquisition process as well as efforts to hold companies securing those easements and building infrastructure accountable for ongoing environmental and private property damage. We do oppose the use of eminent domain — but recognize that it may occur when projects (such as energy projects) are determined to be for the public good. That is why we emphasize just compensation and holding companies accountable for ongoing environmental and private property damage. That usually means that farmers need to negotiate the best deal they can — and if the companies do not hold up their end of the deal, we support farmers’ efforts to make them accountable. But the key is to negotiate the strongest agreement possible.

Editor's note: The Iowa Soybean

Review received a reader's note inquiring about Iowa Soybean Association's position regarding eminent domain.

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How to Win the

Farm Financial Game By Easton Kuboushek

Times are tight but they don’t have to be tragic. Iowa Soybean Association recently sat down with Rabo AgriFinance’s Regional Vice President, Chris Olson, to map out a few tips to maintaining profitability through financial sustainability. Follow these four steps and your farm will be well on its way to a financially sound future.

to lock-in profit, especially when we’re in a cycle like we are right now. When making marketing decisions, don’t be looking to hit home runs. Singles and doubles will get you into the hall of fame much quicker. Small wins in your operation are the key to sustainable profitability.

4. When it comes to critical conversations, have them sooner rather than later As soon as harvest is done this year make an appointment with your lender. It might not be easy or good, but there’s no reason to put it off. The longer farmers wait, the less time there is to react and make the best decisions. Producers are experts on the farm but may not be an expert in financing — so lean on a banker or lending partner to help make tough financial decisions.

1. Dig deep into the numbers

Farmers need to really drill down the breakeven cost for their operation and get a fair representation of their family’s cost of living. If you don’t know, you may be overstating what your farm is trying to accomplish; or if you’re understating you can’t make good marketing decisions. Look at the operation holistically to understand your enterprise’s debt structure, asset base and working capital position — then assume a breakeven point. Once you get a good handle on the past, then build out what the next year will look like.

Ambition

Requires Vision

It’s important to see things as they really are – and how they could be.

2. Where are the inefficiencies?

Once a farmer understands the numbers, it’s time to look for ways to save. Look at the overall use of equipment, inputs and people — are they operating efficiently? Can you get by with less? Look for opportunities to save money anywhere you can then manage money to the best of your ability.

Ambition is knowing the seeds you’re planting today will create lasting value. It’s working alongside those who share your vision.

3. Look for singles, not home runs

Market and weather reports tend to drive too many decisions. If we understand our breakeven point, we should be able to market when we have opportunities

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CRITICAL CONVERSATIONS: Talking out the tough issues

Communication is essential, especially when economic times are trying. However, those conversations can be difficult. Several ISA members have asked us to offer practical tips and tools from other farmers, bankers, agronomists and input suppliers about how to make the tough topics easier to discuss.

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DON’T TALK NOW, PAY LATER By Matthew Wilde

utting off or not having critical conversations can be costly. Farmers, bankers, agronomists and input suppliers say it’s important that everyone involved in financing and growing a crop is on the same page, especially during tough economic times. If not, the consequences add up for all involved — from lost revenue to possibly losing a client and trust. In Roy and Tim Bardole’s case, a lack of communication with their lender cost the father and son from Rippey nearly $145,000. “This will sting for a while,” Tim says. According to the Bardoles’, their bank sent all ag clients an email after the first of the year saying they should market old crop and some new crop grain because prices weren’t expected to improve. The email indicated securing an operating loan without a guarantee of expected revenue to repay it could be more difficult. Tim and Roy, a current Iowa Soybean Association (ISA) at-large

director and former director and president, respectively, took the email as more of a directive than suggestion. The bank had already quit issuing operating notes to some clients, Tim adds. So the Bardoles deviated from their marketing plan, spurned the advice of their marketing advisor and sold 75,000 bushels of old crop corn, 15,000 bushels of old crop soybeans, 7,000 bushels of new crop beans and 30,000 bushels of new crop corn. They did so before the unexpected late winter and spring price rally. The Bardoles’ say they received $3 per bushel and 75 cents per bushel less for soybeans and corn, respectively, as a result. The loss would not have occurred if they followed the marketing plan and consultant’s advice, they say. “We felt like we didn’t have a choice,” Tim says. “I totally understand where the bank is coming from and I believe our banker had our best interest in mind. I don’t agree with it … but they’re nervous. They don’t want a repeat of the ‘80s.

Tim Bardole, ISA at-large director and farmer near Rippey.

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One thing I tell clients is don’t think you are ever bothering me. Let me know what’s going on. Bankers don’t like surprises, especially big ones.

”

— BRIAN KNUDTSON, vice president of ag lending at MBT Bank

“In a tight year, the money we lost can be the difference between ending the year in the red or black,” he adds. “It’s frustrating.” Why tell the story and divulge financial information that most farmers would keep private? The Bardoles want others to learn from it and hopefully avoid what happened to them. Tim says he and his lender usually communicate well throughout the year, but in this case it didn’t happen. The Bardoles were busy preparing for this year’s crop and didn’t discuss the correspondence or an alternative plan of action, he says. “At the time, I had no way to prove the bank was wrong,” Tim says. The Bardoles won’t let a lack of communication with their lender cost them again. They will have an updated marketing plan always at the ready, including cost of production, grain on

hand and sales goals to prove to their lender they have a strategy in place. “When times are tough in agriculture like now, it’s especially important to have a good relationship with your banker,” Tim says.

Lenders’ view

Brian Knudtson, vice president of ag lending at MBT Bank based in Forest City, couldn’t agree more. Constant, open and honest communication between himself and farm clients is crucial to help both parties make it through periods of low crop and livestock prices. Neither benefits if farmers go out of business or can’t repay loans, Knudtson says. He should know. Knudtson, who works out of MBT’s Lake Mills branch, is also a farmer. “One thing I tell clients is don’t think you are ever bothering me,” Knudtson says. “Let me know what’s

Joe Platt (above left), Massena, and Brian Knudtson (above right), Forest City, both balance farming with careers in banking. The dual roles help them relate to their banking customers while also augmenting their farm financial decision making.

going on. Bankers don’t like surprises, especially big ones.” MBT won’t tell farmers when and how to market grain and livestock because of possible repercussions like losing a customer, but he will advise clients to have a marketing plan and to get offers out to buyers to take advantage of upswings in prices. It’s also recommended farmers keep lenders in the loop on inventory and sales, Knudtson says. The following are steps MBT takes to help clients through good communication: • Advise farmers not to take on too much debt to buy land and equipment and limit loan amounts. • Restructure loans to free up working capital. • Help calculate cost of production. • Find ways to trim input costs and living expenses. [ Continued on page 14 ] O C T O B E R 2 0 1 6 | I A S OY B E A N S . C O M | 1 3

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[ Continued from page 13 ]

“Last year our bank did help those that wanted to boost working capital and improve cash flow by restructuring some debt,” Knudtson says. Talk early and often is Joe Platt’s motto. He’s a vice president and senior loan officer with First National Bank (FNB) of Fontanelle who also farms with his family. Platt keeps updated financial statements for clients. He studies cash flow, realistic yields and prices when making lending and other decisions. FNB avoids telling farmers how to run their business, but works closely with them for mutual benefit. He understands it’s hard to talk to lenders if repayment of loans is problematic, but it still needs to be done.

“Some conversations are hard to have, but they don’t get easier the longer you wait,” Platt says.

Trust

Good communication between farmers, agronomists and input suppliers is crucial when commodity prices are low, experts say. Sammi Wangsness, a sales agronomist for Heartland Co-op’s Colo, Enterprise and Cambridge locations, says she’s in constant contact with nearly 50 clients and sometimes their lenders. To help clients save money, she creates a plan for all inputs to achieve pre-season yield goals early enough so they can take advantage of all pre-pay discounts — typically 7-15 percent, Wangsness says

Farmers need to trust the people they work with. My passion is their passion. If they’re not succeeding, I’m not succeeding.

”

— SAMMI WANGSNESS, sales agronomist for Heartland Co-op

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— and rebates. Then, they work together to whittle away inputs if needed due to finances hopefully without sacrificing current and future production. That takes trust, she says. As a 25-year-old female, Wangsness admits that can be hard to come by in her field. But she’s working hard to earn it. “Farmers need to trust the people they work with,” Wangsness says. “My passion is their passion. If they’re not succeeding, I’m not succeeding.” More and more, she says lenders are dictating what farmers can spend on a crop. Again, she urges trust. “We made it through the ‘80s,” Wangsness says. “We’ll make it through 2016 and ’17.”

Investing Checkoff Dollars

OPEN COMMUNICATION IS KEY By Kim Greenland When working through tough economic times with our agricultural clientele, trust, open communication and mutual respect are key. With this foundation, working through tough economic conditions and narrow margins is much less stressful. Obviously that's not all there is to working through challenges, but it is the starting place. Timely and accurate financial information including balance sheets and cash flows are essential. It’s very important that if challenges to your farm operation are suspected, you get your information together sooner rather than later. We sometimes see increased procrastination to bringing in balance sheets in tough times. I understand. No one looks forward to difficult conversations but believe me, the sooner these conversations can start the better the result. In an environment of falling or erratic commodity prices and softening machinery prices, it is important that realistic and current market values be put on balance sheets so fully informed decisions can be made. From the time we start

working with clients on their year-end financial statements, until all plans get together in early spring, we've seen major changes in commodity prices sometimes affecting the plans we might have in place. Again timely, open communication is the key to reacting to changing conditions and employing up-to-date strategies to work our way through. Different size operations can require different levels of information and analysis. As margins tighten and operations are increasing in size, it's sometimes prudent to employ outside expertise to make your operation competitive and viable long-term. I don't have to remind anyone how complex and involved farming has become. That being said, I believe some farming operations, (not all) need to bring other experts onto their management team. In addition to your banker, these could be accountants, crop and marketing consultants, machinery technology experts, the list goes on. I'm certainly not suggesting that we don't have farm clientele that take care of all of this on their own and are

very successful; I'm only suggesting that in tough economic times or for growing operations, don't be afraid to add experts with proven results to your management team. That said, I (and City State Bank) continue to be optimistic and excited about the future of agriculture and the opportunities available.

In tough economic times or on growing operations, don't be afraid to add experts with proven results to your management team.

”

— KIM GREENLAND, Senior Vice President of City State Bank in Mount Ayr

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Tough Times in Agriculture

REQUIRE GOOD COMMUNICATION By Val Farmer

The problem

How farmers and their spouses communicate during stressful times makes a big difference on how they feel about each other. Because of their strong emotions, the crucial nature of their precarious financial situation and differing opinions, they need to unify and draw strength from each other. Tough decisions and strategies need to be made, changes and alternatives explored, and hope generated. Poor communication habits during stress lead to loneliness, isolation, anger, blame, fear, depression, anxiety, and social withdrawal. A past history of poor communications looms large in each of their minds and creates a hesitancy to engage each other. One or both partners become fearful of conversations where raw, unfiltered feelings may come tumbling out triggering likely hurtful responses. It seems too risky. Instead of depending on each other for emotional support and care, ideas, and cooperation, each partner is left alone with heavy burdens. Pride, reputation, and/or a rural ethic of self-sufficiency are also factors that inhibit farmers from sharing their dilemma with close friends and neighbors. Being closed off to one’s spouse and everyone else is not a good place to be. 1 6 | O C TO B E R 2 0 1 6 | I A S OY B E A N S .C O M

Communications starts with listening

Why is listening important? It is through understanding the emotions of others and putting ourselves in their shoes that we become open to new ideas and more persuasive in communicating our own thoughts and feelings. What is so hard about listening? It means having enough emotional control to restrain our impulse to “cut to the chase” and insert (interrupt) our own ideas and opinions before our spouse has finished his or her line of thinking and feels understood. A poor listener can become a good listener by practicing these simple guidelines: 1. Watch your body language and tone of voice. Project caring and concern with your non-verbal communication. 2. Listen to understand. Summarize the speaker’s points and show your understanding in a caring manner. Both the accurate summary and a caring manner are essential. Get agreement that you understood the speaker’s points. By being a good listener doesn’t mean you are agreeing with the speaker. It means you are respectfully waiting your turn and doing your best to learn about the speaker’s point of view until then.

3. Don’t give your own opinion, counter-argument or ask leading questions. This will free up your 300 word-a-minute mind to concentrate on showing understanding and giving empathic summaries of your partner’s 140 word-a-minute opinion. This will also dampen your own emotionality or willingness to mentally rehearse and interrupt with your opinions. 4. Draw the speaker out through open-ended questions. Be curious and explore the history of how he or she came to view the situation. 5. Interrupt only to help the speaker know when he or she has exceeded your attention span or when you have become too emotional to listen. It is important to follow the speaker’s train of thought and to become a sounding board to him or her. 6. Make sure your partner feels satisfied that he or she has finished their message and feels understood before asking for the floor. Though the listener carries most of the responsibility, the speaker can also facilitate a good conversation. Here are some guidelines to help you become persuasive in a difficult conversation.

VAL FARMER has been a strong voice and presence in agriculture since the early 80s. He has a PhD in Clinical Psychology from the University of Arizona in 1976. He practiced in North and South Dakota for 31 years prior to moving to the St. Louis area in 2006. He was a newspaper columnist for 28 years from 1984 -2012. He specialized in rural behavioral health topics and his column was carried in the major ag papers throughout the Midwest. His archived columns are accessed on his website, www. valfarmer.com. He was a weekly guest on a radio call-in show Agri-Talk from 1994-2004. Dr. Farmer continues to provide consultation and mediation services for multi-farm families experiencing conflict and communication difficulties.

1. Have a “soft” start up to a problematic discussion. Express appreciation or admiration for the contributions you’ve observed your partner make. Express your positive intent in wanting to work together and to improve your relationship. Make your points in a friendly, warm and respectful way. 2. Watch your body language and tone of voice. Project your concerns without offputting anger, judgments or disrespect. 3. Show respect by using tentative or conditional language. Show awareness that you are offering your opinion and it is subject to change. Avoid exaggerated or inflammatory statements that trigger defenses or argument. 4. Don’t overload the listener with too much detail or emotionality. Pause and request the listener summarize what he or she understood.

5. Tactfully interrupt interruptions and remind the listener that you want to finish your thoughts. Reassure the listener that you will listen to their thoughts when he or she has the floor. If the listener is flooded with emotion and is unable to listen, offer the floor and become the listener. 6. Speak from the heart. Don’t be afraid to show your emotions. Let your partner know what is really going on with you. Trust that communications will bring you together.

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Coping as a couple

You don’t need to feel frustrated, alone or abandoned by problems that divide you. At least 50 percent of problem-solving is listening and understanding each other before launching into finding a solution. Understand and help solve your partner’s problem as you solve your own. These skills can be learned. They have the potential to open a whole new world of emotional intimacy and cooperation. O C T O B E R 2 0 1 6 | I A S OY B E A N S . C O M | 1 7

Investing Checkoff Dollars

BUILDING NEIGHBOR RELATIONS Don't let the coffee shop tell your farming story for you By Carrie Laughlin

armers are encouraged to tell consumers, their community and the world about their farming operation and how modern agriculture safely and sustainably feeds a growing population. Yet, with so many people to reach out to, sometimes the hardest to visit with are also the closest. Communicating with neighbors is a crucial step in growing your farm operation, yet many farmers find the task daunting.

Starting off on the right foot The Coalition to Support Iowa Farmers (CSIF) has a few tips to help this process go smoothly. While there are many loud, dissenting voices, communication with neighbors and

communities does not have to be viewed as a “necessary evil,” as Brian Waddingham, executive director of the Coalition, says. “The number one issue we see farmers talking to their neighbors about is siting new barns and feedlots and compliance issues,” Waddingham says. According to CSIF Field Specialist Kent Mowrer, these conversations can be difficult because often it’s either approaching people you already know and are friendly with — and therefore don’t want to upset — or it’s the fear of getting off on the wrong foot with unfamiliar people. However, Mowrer says farmers are taking this opportunity to start things off on the right foot.

“Farmer calls have evolved from, ‘What do I have to do?’ to ‘What can I do to be proactive?’ Famers are becoming more conscious of where to put up barns,” Mowrer says.

No one likes surprises

Haley Banwart, CSIF assistant field specialist, adds that emotions are often running high during these times as well. Farmers have set certain goals for growing their operation and there’s a fear of rejection. Waddingham cautions that no one likes surprises and it’s going to take three to six months of legwork before construction even begins. He advises farmers to plan on it taking more time than what they initially thought to get all the details ironed out.

Brian Waddingham, executive director of the Coalition to Support Iowa Farmers, encourages farmers to give their neighbors a tour of their farming operation.

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And when it’s time to let your neighbor know about your expansion plans? Mowrer says though it may be difficult, it’s important to keep emotions in check and remain on a neutral plane. “This is a good time for information sharing with your neighbors,” he adds. “If you’re siting a barn based on wind direction, share that information. Or if you’re planting trees or adding pit additives, share that information. Try to address specific concerns, too. The biggest key is communication. Help educate your neighbors on modern agriculture.” Waddingham also reminds farmers that a picture is worth a thousand words. “Give a tour of your farm,” Waddingham says. “Show them the kind of care you give your livestock.” If there’s one piece of advice Mowrer likes to drive home, it’s this: Farmers, tell your story so the coffee shop doesn’t tell it for you. Andrew Vandehaar takes that piece of wisdom to heart. The Hedrick livestock farmer joined wife Jaime’s family’s farm, Farson Livestock, LLC (owned by the Sterling family), and recently expanded their operation with the construction of a new hog building. Last fall, they invited friends and neighbors to tour the new facility and learn about their farm. Vandehaar says they decided to host an open house with the Coalition after attending numerous cattle barn open houses. It was

important for them to involve CSIF from the get-go to make sure they complied with rules and regulations and did not step on any toes. He says hosting an open house also offers farmers the chance to be fully transparent with their neighbors.

Open the lines of communication

“The easiest way to make someone mad is to not tell them what’s going on,” Vandehaar says. “An open house equals open communication, and they can see we’re not trying to hide anything. It lets everyone know we’re doing things right on our farm.” Waddingham says right now there’s a lot of optimism surrounding the ag sector today, especially in livestock. The Coalition continues to help farmers move forward and develop neighbor relations through open houses, the Wergin Good Neighbor Award and the Green Farmstead Partner Program, along with other events and conferences throughout the year. Look for upcoming information on January’s Farming for the Future Conference and visit supportfarmers.com for more information on how CSIF works for you. The Iowa Soybean Association is a founding partner of CSIF. It was created by farmers in 2004 to help advocate and implement on-farm best management practices that, at no cost, assist Iowa’s farm families in raising livestock responsibly and successfully.

FIVE TIPS to increase

neighbor communications from CSIF 1. Be personal. Include family members in the conversation about the plans to expand your farm. Be willing to talk about your family and what you do on your farm. 2. Be specific. Provide details on what will go on once your new livestock barn is up and running. People like information. 3. Provide examples. Don’t talk in generalities. Offer examples on how you raise and care for your livestock and agriculture’s benefit to the local economy. 4. Welcome questions. Listen intently and be specific in your responses. 5. Follow up. It’s important to note communication should not stop after the initial conversation.

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ON THE HOME FRONT:

Engaging family members in farming conversations By Dorothy Tate

arming isn’t just an occupation, it’s a lifestyle. A demanding lifestyle at times with long hours, high risk and urgent situations — such as planting between spring rains, harvesting before the snow falls or the cows getting out — that often take priority over a planned date night. While these situations and factors are often out of the farmer’s control, it can be hard to accept for family members. Which is why clear and constant communication and conversations are essential for farm couples and families.

Start early

Ethon Smith, a young farmer from Thurman, sees the importance of having conversations about farming with family members. Smith’s girlfriend of two years, Ally Leggett, comes from a non-ag background which has presented some challenges. “It can be hard to understand the hours and the commitment to the farm,” Smith says. “You might make plans to go out and then the 2 0 | O C TO B E R 2 0 1 6 | I A S OY B E A N S .C O M

call comes in that the cattle are out. Sometimes plans get ruined, adjustments need to be made and it can be a challenge.” Last year, Smith and Leggett had the opportunity to participate in the 2015 Dupont Pioneer Young Leader Program. He shared the experience with Leggett in hopes that she could learn more about agriculture and meet other couples who face similar challenges. “It helped a lot to meet with other people who had significant others and realize they face the same issues we do,” Smith says. “It was nice for her to meet people, and get used to the idea that the farm is the priority.” Smith acknowledges there have been some critical conversations about food production and farming, but what has really made a difference is hands-on involvement in the farm operation. “If your significant other shows an interest in wanting to learn about the farm, jump on that,” Smith says. “If they want to learn to drive a tractor or have a bottle calf absolutely do it. Start small and do

some stuff to get them interested and build passion.”

Build trust

Continue down the road a few years to marriage, add an off-farm job to the equation and things can get stressful, especially when times are tough. Gary and Kristi Kuboushek farm in northeast Iowa and have been married 27 years. Gary manages the farm, while Kristi is a nurse and balances all the jobs that go with being a farm wife — chauffeur, errand runner, grain truck driver, kid wrangler, cook and more. They advise a solid foundation of communication is essential. “It’s all about trust and honesty,” Gary says. “If that’s what your marriage is based on, that is how you deal with your ups and down as far as life goes.” Early on, the Kubousheks identified what tasks and jobs were well suited to their individual talents. Knowing who was handling particular needs allowed them to be flexible and accepting.

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Inevitably, tense conversations do arise, but the Kubousheks stress respect is key. “You can be upset with someone and disagree, but you need to respect them,” Gary says. “As long as you maintain that mindset, you can ride anything out with honesty and respect.” Kristi also shares a piece of good advice about clairvoyance. “You can’t read each other’s mind, so don’t think you can,” Krisit says. “Remember, the other person doesn’t know what you don’t tell them.”

Plan ahead for hard times

Like many farm families, the Kubousheks have weathered their share of stress including a devastating hail storm in 2008 and current market volatility. Stress and financial hardship can create relationship turmoil says Mike Rosmann, a farmer from Harlan who also has a Ph.D. in psychology. “When we are economically distressed, we overreact and try to deal with it by working harder on the farm,” Rosmann says. “Instead of it helping, farmers can wear themselves out and deplete positive hormones such as

norepinephrine and serotonin.” Lack of positive hormones can manifest itself in many ways in a relationship, so Rosmann provided some tips for couples: • Communicate — Keeping silent almost ensures that the couple will have difficulty in stressful times, so keep talking. • Hold hands — Touch releases happy hormones and makes the moment easier. • Trade jobs — Studies show couples that swap responsibilities — cooking, cleaning, taking out the garbage, livestock chores, etc. — have a greater appreciation for their spouse and a more resilient marriage. • Ask for help — Asking for help is a strength, not a weakness — couples who have figured out how to talk and how to ask for help are stronger. • Need someone to talk to? Try the Iowa Concern hotline at 1-800-447-1985.

It helped a lot to meet with other people who had significant others and realize they face the same issues we do. It was nice for her to meet people, and get used to the idea that the farm is the priority.

”

— ETHON SMITH, a young farmer from Thurman

It’s important to remember the stressful seasons will ebb and flow. Value the good times and persevere through the stressful times with frequent communication and respect.

Ethon Smith and his girlfriend Ally Leggett participated in the 2015 Dupont Young Leader Program.

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A group of Chinese journalists and key social media influencers toured the Kimberley family farm recently to learn more about modern agriculture production in the U.S.

MAKING DOLLARS AND ‘SENSE’ with international customers By Easton Kuboushek

“Y

That’s the phrase that flowed from landowner Lee Tesdell’s Google Translate app as three delegates from Thailand arrived into his field north of Ankeny. Loosely translated, it means “Welcome to my farm!” in Thai and it brought a smile to the faces from one of the largest and fastestgrowing customers of U.S. soybeans. In commodity markets, price is usually king. That’s why building strong relationships is critical to growing international demand. This visit to Tesdell’s farm is a direct result of the Iowa Soybean Association (ISA) market development trip to Thailand’s Charoen Pokphand Group (CP Thai) in February. The emphasis on sustainability, reliability, quality and sophistication of U.S. soybeans prompted CP Thai to come see for themselves.

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"As an end-user, it's not part of my regular day to get into the field so this is a really good opportunity to learn how farmers produce the bean," says Saranya Jirojsoontorn, department manager, International Feed Ingredients for CP Thai. “I also want to make sure there will be plenty of soybeans and soybean meal for me to buy next year, and it looks like there will be,” she adds jokingly. Jirojsoontorn who sources ingredients like soybeans for CP Thai was one of many Thai delegates who met with the Iowa delegation in Bangkok. They spent three days visiting farmers in Iowa, including Tesdell, ISA Board treasurer Jeff Jorgenson of Sidney and former American Soybean Association director Dennis Bogaards of Pella. ISA President Wayne Fredericks and President-Elect Rolland Schnell also met with the team. Tesdell

talked about sustainable agriculture practices including his bioreactor. Bogaard’s visit included a drone demonstration and explained in detail how his 1,000-acre operation functions — a critical piece of the Thai’s learning mission. "In Thailand, the farmer is very small relative to the U.S. farmer," says Rachata Laohawiroj, CP Thai executive engineer. "We are here to learn about how to increase the productivity and yield and to lower the cost of production. That is why we are trying to bring the small farms together to have some kind of small-scale mega farm so we can use bigger machines.” The delegation also spent time at ISA learning about ISA’s environmental programs with Heath Ellison. This visit and many others over the past five years have helped more than double U.S. exports to Thailand.

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“I can tell you that three years ago — we were at less than 10 percent market share,” says Grant Kimberley, ISA director of market development. In 2015, U.S. soybean exports to Thailand are 527,000 metric tons (t) of whole soybeans and 724,000t of soybean meal, representing a 53 million-bushel market for U.S. soybeans. And it continues to grow. “You have to connect those dots to bring those groups over here,” says Kimberley. “That’s part of it too — not only us going there but them coming here and seeing the farms first hand, talking to the farmers and experts in person. You’ve got to have a program that brings things full circle.”

Repeating a successful model The growth in exports to Thailand is an excellent example of relationships bearing fruit and improving

competitiveness for Iowa soybean farmers — but it wasn’t the first. In 1999, the U.S exported a total of zero metric tons — not a single soybean — to the 7,000-plus islands that make up the Philippines. Today, the U.S. holds a staggering 65 percent market share and at a considerable premium. How did this happen? Kimberley says the process is surprisingly simple. It just takes time. “What it boils down to is going over there to build a relationship with customers, understanding their operations and demonstrating how we can help them," says Kimberley. “Relationships backed up with facts and data demonstrate why our meal is better, why it makes dollars and sense for them to buy soybeans from the U.S.” Now the Philippines import 1.44t of

soybean meal, making them the largest customer outside of North America. At times, the country is willing to pay up to a $25 per metric ton premium to do it. “Our market share would not be possible if they weren’t willing to pay that premium,” says Kimberley. “We don’t always have the least expensive priced product, but we have the best.” The Filipinos also imported 155,000t of whole soybeans — an 89 percent market share. Combined, the Philippines represent a 70-millionbushel market for U.S. soybeans. “In a way, we try to tell the story of the Iowa farmer and how they care so they feel good about buying sustainably produced soybeans from the U.S. and from Iowa," says Kimberley. "Then we prove it by backing it up with soybean meal that is of the highest and most consistent quality in the world.”

Relationships backed up with facts and data demonstrate why our meal is better, why it makes dollars and sense for them to buy soybeans from the U.S. — GRANT KIMBERLEY, ISA director of market development

”

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Peter Kyveryga

FARMERS AND RESEARCHERS:

How jacks-of-all-trades can talk to masters of one By Allison Arp

armers are known as jacks-of-alltrades. They must be an agronomist, mechanic, marketer, conservationist, scientist and many other jobs all on top of doing the field work required for farming. Having a focus on so many jobs often means there isn’t enough time to devote to each and every one. That’s why farmers surround themselves with a team of experts including coop agronomists, dealer mechanics and academic researchers. While many coop and dealership employees have extensive training in talking with farmers, scientific researchers often do not. ISA’s researcher, Peter Kyveryga, Ph.D., shares tips and tricks farmers should keep in mind when talking to a researcher.

Q: What is the best advice you can give farmers when talking to researchers?

Don’t be afraid to ask questions. Listen for specific terminology used by researchers. When people are in specialized areas of study, they often use words and expressions with different variations. Seemingly simple terms may have different meanings in academic versus practical worlds. 2 4 | O C TO B E R 2 0 1 6 | I A S OY B E A N S .C O M

Don’t be afraid to interrupt and ask for clarification during the conversation.

Q: Do all researchers use the same strategy when discussing research with non-scientists?

Definitely not. For example, extension researchers try to use common language and simple terms while communicating with farmers. This is not always true for scientists specialized on the basic research. Commonly, researchers will give an answer based on their background and experience in a specific area. Consider whether the researcher’s area is focused on laboratory versus field or applied versus basic research problems. These will provide insight into the researcher's mindset and expertise.

Q: Why do researchers tend to ask a lot of questions?

Researchers will ask for more background information if they are interested in a farmer’s problem or question and want to provide reliable suggestion or recommendation. Farmers should be ready to provide specific examples, personal observations, historical agronomic

information or even data. Scientists don’t make judgements based on anecdotal evidence; they often study and research specific topics in depth for many years.

Q: What if, after meeting with a researcher, a farmer still doesn’t understand what they’ve said?

Ask for written materials or other sources. If a farmer doesn’t understand an explanation or if it’s not specific enough, most researchers will have a publication or example that can be useful. Extension material is often written in farmer-friendly language. Some researchers will admit they don’t know the best answer, but all should be able to point you to other researchers or sources for help.

Moral of the story, these researchers have spent their careers mastering one topic, and they’re available to help farmers who have spent their whole lives learning dozens. Using these tips will help get the most out of what researchers have to offer.

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Roadmap to

CONSERVATION SUCCESS By Michelle Jones

oday, Global Positioning System (GPS) provides drivers with turn-by-turn directions to reach their final destination. In much the same way, a conservation plan guides on-farm improvements. Like a roadmap, a conservation plan shows farmers the best route to achieve their agronomic and conservation goals. During the planning process, landowners — along with their technical service provider such as the Natural Resources Conservation Service (NRCS), local agronomists or crop adviser, or the Iowa Soybean Association (ISA) Environmental Programs and Services team — assess the impact of their current practices on their natural resources, evaluate potential impacts and identify ways to either reduce those impacts or continue positive practices already in place. Kevin McCall, NRCS assistant conservationist for field operations, says conservation planning is the opportunity to “sit down with individual landowners and spend some time actually taking a look and reviewing resource issues on their farm.” The planning process helps farmers determine their baseline for soil erosion, nutrient programs, water quality and much more, according to Heath Ellison, ISA operations manager of ag and natural resources.

“Conservation planning helps put some numbers to these things, and what’s going on but you can also use these same tools to assess alternatives,” Ellison says. “It gives the farmer a tool to make a more informed decision.”

Components of a conservation plan Resource overview

• Maps, records, human resources, etc. Resource considerations/concerns

• Assess soil, water, livestock, wildlife, energy, cultural and economic impact and management Alternatives assessment

• Benefits, risks, trade-offs, cost Implementation and evaluation

• Planned action(s), such as implementing cover crops, grass waterway, nitrogen management, no-till, etc. • Evaluation, such as strip trial, water monitoring, visual, etc.

Farmers need to know

• All farmers can find value from conservation planning. • A completed conservation plan is required to enroll in federal costshare programs, including the

Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP) • Start the planning process early — well in advance of applying for costshare. • Farmers should engage their agronomist in the conversation. This will assist with smooth implementation and understanding of what you are working to accomplish. Conservation planning can benefit every farmer. For those interested in applying for NRCS programs, McCall and Ellison both recommend farmers begin the planning process as early as possible. In fact, producers can complete conservation planning long before they are interested in cost-share. The plan shows where improvements are needed and then is in place when the farmer is ready to apply for cost-share. “If we get folks to start thinking more proactively, that gets them a long ways ahead,” McCall says. For more information about conservation planning or to start the process, contact Heath Ellison at hellison@iasoybeans.com or 515-251-8640, or the local NRCS office.

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COLORFUL FARM Buzzing with activity By Matthew Wilde

color explosion occurred at Wayne Fredericks’ farm this summer. The Iowa Soybean Association (ISA) past president couldn’t help but stop and soak in the beauty every time he passed one of several pollinator habitat plantings on his rural Osage farm and other land he owns or rents. When in full bloom, Fredericks’ says the plots are breathtaking. Purple coneflowers, sunflowers, black-eyed susans and yellow cup plants are among the more than 50 species of prairie flowers, milkweeds and native grasses in six tracts ranging from .7 to 3.2 acres. In all, Fredericks has 6.7 gorgeous acres full of bees,

butterflies (monarchs are especially welcome) and other wildlife — the ultimate motivation to plant. “I just love it,” Fredericks says. “I always find myself looking at it. This is the first place I take guests. “It’s just so pretty,” he adds. “There’s a doe and two fawns living in one of the pollinator habitats that’s also a filter strip.” State and federal agencies are working in conjunction with agriculture groups, including ISA, to increase pollinator habitat. Here’s a few reasons why: • Pollinators play a critical role in maintaining healthy ecosystems.

• Bees, birds, bats and other pollinators are key players in crop production. • It’s good to maintain diverse, productive plant communities. • It provides much-needed wildlife and pollinator habitat. For example, monarch butterfly populations have declined due to depletion of milkweeds. According to Iowa Learning Farms, plants and pollinators exist in a mutualistic relationship, in which each one depends on the other for survival. The world’s flowering plants largely depend on animal pollinators to transfer pollen to reproduce.

One of several pollinator habitats last spring at Wayne and Ruth Fredericks' farm near Osage.

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It enhances habitat in environmentally sensitive areas, protects water quality and it’s just fun. It’s important to society that farmers be a part of the solution.

”

— WAYNE FREDERICKS, ISA past president and farmer As Iowa’s rural and urban landscape changed through the decades, pollinator habitat became scarcer. The Iowa Monarch Conservation Consortium, along with other groups, are working to change that. “Research in progress at Iowa State University (ISU) suggests that small habitat patches ranging from a half-acre to several acres across Iowa will likely be most effective to support (pollinators) and the monarch breeding process,” says Steve Bradbury, Ph.D., ISU professor and consortium team member. The latest Iowa Farm and Rural Life Poll indicates 42 percent of 1,159 farmers would consider planting pollinator habitat. Fredericks urges farmers and landowners to do so, especially in less productive areas of fields: grass waterways, filter strips and other places. As farmers spray ditches and fence lines to control noxious weeds, Fredericks hopes farmers resist the temptation to kill existing pollinator habitat as well, especially milkweeds. It’s not only aesthetically pleasing, Fredericks says, but the right thing to do.

“It enhances habitat in environmentally sensitive areas, protects water quality and it’s just fun,” adds Fredericks, who’s also part of the consortium. “It’s important to society that farmers be a part of the solution.” Financial assistance is available to help landowners pay for seed, planting and land for pollinator habitat through various government programs. People can check with their local U.S. Department of Agriculture Natural Resources Conservation Service office. In Fredericks’ case, he received 50 percent cost-share assistance for seed and planting. He worked with the local Pheasants Forever representative to obtain seed. He also earned a $150 per acre sign-up incentive. Annual payments on the land through the Conservation Reserve Program are about $275 per acre. “I am getting enough rent to cover my rental payments to landlords and a good payment on my owned ground,” Fredericks says. As an added bonus, the veteran farmer was able to take environmentally sensitive and less productive and profitable ground out of production for habitat. Fredericks

worked with ISA to conduct a profitability analysis on his operation. “These were areas that showed low profitability compared to the balance of the farm. So, in reality, I have improved my bottom line and am more sustainable,” he continues. Todd Sutphin, ISA Environmental Programs and Services senior operations manager, says adding diversity to the landscape is a good thing. Farmers can do it and boost their income. According to Ag Solver, 3 to 15 percent of every field is consistently not profitable. The company uses a 140-acre tract in Cerro Gordo County as an example. By taking unprofitable acres out of production, the average profit increased from $47 to $76 per acre. A pollinator program could boost that to $105 per acre. ISA’s environmental team is eager to help members improve the environment, productivity and profitability, Sutphin says. “We look holistically at fields to determine what areas are under producing. Then we provide options of what farmers and landowners can do,” he adds. “Planting pollinators is a good option.” O C T O B E R 2 0 1 6 | I A S OY B E A N S . C O M | 2 7

THE STORY BEHIND

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