Iowa Soybean Review, March, 2017 by Iowa Soybean Association

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

NON-PROFIT ORG. U.S. POSTAGE PAID DES MOINES, IA PERMIT NO. 1333

TRUCKS, TOYS & TECHNOLOGY March 2017

SOYBEANreview

IOWA

FCSAMERICA .COM

Dean & Linda Frazer Soybean & Pork Producers Conrad, IA View their story at: fcsamerica.com/frazers

FINANCING WITH US PAYS DIVIDENDS. AND THAT’S NOT JUST A FIGURE OF SPEECH.

THIS YEAR OUR ELIGIBLE CUSTOMERS WERE PAID $160 MILLION IN CASH-BACK DIVIDENDS. We are owned by the customers we serve. And that means they can get a share of our earnings – a cash-back dividend check they can use to grow their business or support their community. Since 2004, we’ve been sending checks that now add up to more than $1.3 billion. Learn more by visiting powerofownership.com, or call 800-884-FARM.

Iowa Soybean Association

March 2017 | Vol. 29, No. 6

10 Adding Efficiency with Driverless Deliveries Autonomous

truck driving might have future implications for Iowa's farmers.

12 Informed Decision Making: Practical Use of VRT Farmers’ toys just

get bigger and the technology becomes a tad more tantalizing.

14 Turning ‘Toys’ into Profitable Technology

Variable rate technology is making farmers' lives more profitable.

20 Stewardship Key to

Curb Herbicide Resistance

While it would be nice to return to the days before glyphosate became less effective due to herbicide resistance, those days are long gone.

About the Cover:

In recent years, unmanned aerial vehicles (UAVs), commonly called “drones,” have literally taken off as farmers' favorite toy. But within this high-flying tech lies an opportunity for farmers to improve profitability. Dennis Bogaards, ISA farmer-member from Pella, uses his drones to scout his fields.

Photo above: The world’s first fully autonomous truck delivery was made last year — a load of Budweiser. Could a semi-truck full of soybeans be next?

M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 3

Iowa Soybean Association

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

A Balanced Portfolio When it comes to making decisions related to financial investments, experienced advisors frequently encourage investors to have a balanced portfolio. The key reason for this advice is to make sure that we balance risk with potential financial gain. Over time, this balanced approach will likely change due to such things as age, deteriorating or improving macro financial conditions, changes in personal or family health and concerns regarding overall comfort with risk. As I get older and begin to think about life "after soybeans" and our four children become adults, the way I look at my personal investment portfolio has certainly been impacted. The board of directors of the Iowa Soybean Association (ISA) go through a similar review of its investment of soybean checkoff dollars annually. They consider changes in the ag economy, global competitors, domestic and international political climates and uprisings, crop projections, regulatory pressures, changing consumer preferences, weather patterns, emerging technologies, pending and threatened lawsuits, needs of collaborators and partners and the ever changing needs of the farmers who pay the checkoff. With these and additional considerations in mind, the board takes a look at its historical investments and then decides what changes need to be made. Should they investment more in building demand or increasing supply?

Should they dedicate more resources to speed the adoption of new technologies? Should they enhance efforts to improve the understanding of consumers of today's food production system? Should they increase communication on the impact of proposed regulations or the value of trade agreements? Do they partner with others to encourage more farmers to actively participate in the state's nutrient reduction strategy? The list goes on. There are never enough resources to meet all of the challenges. How does a board increase the likelihood that investment decisions they make are in the best interest of Iowa's soybean farmers? Although we do have well-defined strategic planning and budgeting processes to assist the farmer-directors in making these important decisions, I have found over the many years, ultimately the board needs to take a balanced approach. Yes, the economy and the political climate change over time, but a long-term view of the world has served ISA directors well. With a careful and thoughtful review, they can balance risk with potential gain. Want to learn more about how you could play a more active role in this process of balancing the portfolio? Drop me a note or give me a call. I would love to share some opportunities for you to serve. 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 | M A R C H 2 0 1 7 | I A S OY B E A N S .C O M

Staff Credits Editor | Ann Clinton Communications Director | Aaron Putze, APR Creative Manager | Ashton Boles Photographer | Joe Murphy Staff Writer | Carrie Laughlin Staff Writer | Matthew Wilde Staff Writer | Dorothy Tate Staff Writer | Allison Arp Staff Writer | Michelle Jones Staff Writer | Easton Kuboushek Sales Director | David Larson The Iowa Soybean Review is published eight times a year by: Iowa Soybean Association 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023 Phone: (515) 251-8640 Web address: iasoybeans.com E-mail: aclinton@iasoybeans.com

Iowa Soybean Association can also be found on these sites:

STINE LIBERTYLINK SOYBEANS control our weed issues. After seeing ®

our pass with Liberty , we know this is the program we need to keep our ﬁelds clean. ®

STINE HAS WHAT I WANT AND WHAT MY FARM NEEDS.

I CHOOSE CONTROL. I CHOOSE RESULTS. I choose what I can count on. I choose Stine because…Stine has yield.

ANDY POTTER Southeastern Michigan

Are we ready to creatively work on water quality? By Carol Balvanz, Policy Director So far this legislative session, we’ve heard much discussion on the lack of funding available for many projects. So without a vote to raise some tax (which the Republican majority is reluctant to do), the prospect of being able to appropriate $100 million for water quality efforts for the next several years are dim. Knowing this, the Iowa Soybean Association (ISA) has worked with legislators this session to put together some bills that would create structure for water quality efforts beyond the current grant and cost share programs. We’ve had many legislators tell us that they aren’t comfortable appropriating “significant long term funding” for water quality until they see a specific plan for how it will be spent. ISA’s Director of Environmental Programs and Services Roger Wolf has testified at both the Senate Natural Resources Committee and the House Agriculture Committee about the watershed planning process and how it works. But instead of requesting a large appropriation for the efforts, we’ve concentrated on looking at creative financing efforts for water quality. Those of you who attended the ISA Research Conference in early February may have seen Roger’s presentation on Water Quality Finance. Cities must meet certain nutrient limits for their permits. While cities are not the largest source of nutrient, it is probable that it’s very costly for them to meet their permit limits with additional pipes and filters. However,

6 | M A R C H 2 0 1 7 | I A S OY B E A N S .C O M

they can make an investment in the farmland and practices in the watershed above the city — by assisting in building a wetland, a bioreactor, or saturated buffer — and gain enough credits from the nitrogen reduction of those practices to meet their permits — for pennies on the dollar (as Wolf likes to say.) For the past several years, urban and ag have been pointing fingers at each other about water quality. Maybe it’s time to take a watershed approach where both the urban and farm interests in a watershed think about the best business plan they can devise to make the nitrogen reductions promised in Iowa’s Nutrient Reduction Strategy. We have some cities already working on nutrient exchange projects in their watersheds, and there will be three more pilot projects next year. If we’re really serious about making the nutrient strategy work, it may be time to stop waiting for all the money we need to show up — and instead embrace some of the creative financing programs that could put watershed plans and structures in strategic locations around the state. Our research over the past 15 years shows us farmers can make improvements, sometimes at their own expense, but engaging with a partner downstream could be a good deal for both parties. Could a strategic water quality finance plan help us reach our goals more quickly and efficiently? We’re hoping the legislature will give us a chance to find out.

New approval for U.S. aqua feed could increase demand for soybean meal Casting a wider net to increase soybean meal demand is paying off. The soy checkoff, along with the Soy Aquaculture Alliance and many others, is opening doors to increase soybean use in U.S. aqua feeds. Following years of checkofffunded research, the Association of American Feed Control Officials recently authorized a new definition for the use of synthetic taurine in fish feeds. (Taurine is a sulfonic acid found in high concentrations in animal tissue.) Approving taurine from additional sources reduces the need for fishmeal in feeds and allows for more soy protein; a change that could directly impact farmers’ bottom lines. “Years ago, we recognized that taurine was a limiting factor to maximizing our share of a fastgrowing market,” says Mike Beard, soybean farmer from Frankfort, Indiana, and director on the United Soybean Board. “This new approval opens up a

your

significant part of the aquaculture diet for soy.” Following this approval, farmers could start seeing added demand and the benefits it brings. Soybean meal offers a high-quality, renewable protein source for many species of fish. This makes it an economical choice for fish feed manufacturers. The potential for increased soydemand in this market will have a direct impact on the return farmers receive for their soybeans at the elevator. Demand for seafood is growing at a staggering rate. Identifying this opportunity years ago ensured that farmers would be able to begin capturing their share of value right along with it. “This is a great example of the checkoff’s commitment to maximizing soybean farmers’ profitability,” comments Beard. “We will see our efforts from this innovative investment in aquaculture pay off for years to come.”

cooperative

soybean processor

www.agp.com M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 7

TRACKING FARM HEALTH By Michelle Jones

itbit. Apple Watch. Garmin. There’s no shortage of wearable technology counting calories, steps and heart beats. While there isn’t a “Farmer Fitbit” to strap on tile lines, there is a method for farmers to collect valuable data to step up the health of their farm. In the same way wearable tech puts life-changing data at the users’ fingertips — literally — farmers can collect nutrient-saving data through water monitoring. “It’s sort of like our Fitbits,” says Clare Lindahl, executive director of Conservation Districts of Iowa (CDI). “The more data we have about ourselves and about our farm, the more we can improve. “If I got 8,000 steps yesterday, I really want that 10,000, but I would never know that I wanted to do more or that I need to do more if I didn’t have that gauge. That’s really the thing I can compare it to most, that fitness tracker, that idea of I need to know where I am to know how I can improve.”

Start somewhere

Currently, Iowa farmers can monitor tile nitrate either through the retaiN program, with the 360 Soilscan or through a certified water lab, such as the Iowa Soybean Association (ISA) water lab. A simple way to begin monitoring is the retaiN program — a collaboration between CDI and Iowa State University

8 | MARCH 2017 7 || IIA ASSO OY YB BE EA AN NSS..C CO OM M

Extension and Outreach. Basically, analyzes tile samples for nitrate and farmers dip a nitrate test strip in a tile phosphate but has the ability to test other water sample and compare the test strip items depending on the farmer’s needs. color to the color chart on the test strip ISA sends farmers monthly and annual bottle to determine a nitrate level range reports with their results and general in parts per million (ppm). recommendations to reduce nitrate loss “Farmers tell us they like the strips based on the farmer’s specific results. because they are easy to use, handy To get a true picture of nitrate loss, and the results are instantaneous and farmers need to monitor frequently. The private,” Lindahl says. ISA water lab tests samples every other Another option week from Aprilis the 360 Soilscan August. With the 360 machine, which is Soilscan and retaiN available at select strips, farmers need Natural Resources to determine their Conservation Service monitoring schedule offices across the and log results. state. Using the Once farmers have water testing kit, the an idea of their nitrate Clare Lindahl machine measures loss, they can use the concentration that information to of nitrate and generates a specific ppm make in-field management changes or result, similar to a certified lab. implement edge-of-field practices. “The nice thing about the “To start, it’s about awareness 360 Soilscan is it will put you in the and then it can show cost effective ballpark the same way the strips opportunities for conservation,” says would,” says Theo Gunther, ISA resource Tony Seeman, ISA environmental management specialist. “It doesn’t have research coordinator. “I think most the same low margin of error that a lab farmers are doing the right things, would have, so there is more variability, but they may not have an idea of but it will get you close and it will get how that impacts the water. In many you an actual number.” cases, additional steps will need to be taken to meet the goals of the state’s Take it to the next level nutrient reduction strategy. Water The most accurate results come from monitoring can be another indicator a certified lab. The ISA water lab typically for continuous improvement.”

AEROPTIC

provides sophisticated Remote Sensing imagery to the Iowa Soybean Association, as well as to Iowa’s agricultural service providers, seed and chemical companies and others.

AEROPTIC

quickly and efficiently provides Remote Sensing imagery in the format that you want.

AEROPTIC

moves precision agriculture to predictive agriculture for key making key profit determinant decisions during the growing season. Soar to a fuller and clearer picture with AEROPTIC! Contact us at www.aeroptic.com or call Business Unit Manager Nate Taylor directly at (814) 441-1867 or email at ntaylor@aeroptic.com

M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 9

Investing Checkoff Dollars

Adding Efficiency with

DRIVERLESS DELIVERIES By Dorothy Tate

he world’s first fully autonomous logistics for Landus Cooperative, truck delivery was made last year also sees possible benefits in labor — a load of Budweiser. Could a semi cost reduction during peak times and full of soybeans be next? an increase in dependability from a Iowa experts say probably not, but programming standpoint. that doesn’t mean the technology isn’t “If the truck does not need a human coming in the future or doesn’t have being on the highway, it will cut implications for farmers. costs,” By Dorothy TateEischeid says. “However, the Mike Steenhoek, executive director cost up front would be very high and of the Soy Transportation Coalition create a barrier to entry. Industry-wide, (STC), is keeping his eye on the grain is one of the cheapest things to technology. haul. There are industries with more “Automation technology could open margin in their products that are likely up different agriculture markets within to utilize autonomous trucks first.” the state and country because the Future infrastructure cost of transportation will decrease,” The STC keeps close tabs on the Steenhoek says. “The technology could transportation infrastructure of the allow round the clock deliveries or a U.S., particularly because it has a driver could arrive with three or four semis at a time and unload all of them.” competitive edge over South America. When talking about automation and Gary Eischeid, vice president of

“

technology, infrastructure plays an important role. Steenhoek explained that traditionally, as demand for transportation systems increased, the size and number of roads have increased. Looking forward, he anticipates automation will put more vehicle traffic on the existing roads. “The future is about working more efficiently within the transportation system we have,” Steenhoek says. “The resources are out there to allow us to move more people and things within our current system, the technology is just needed to orchestrate that.” The Iowa Department of Transportation (Iowa DOT) is working on a project to build the technology needed to accommodate automation on the current infrastructure.

T H E F U T U R E I S A B O U T WO R K I N G M O R E

E F F I C I E N T LY W I T H I N T H E T R A N S P O R TAT I O N

”

SYS T E M W E H AV E .

— Mike Steenhoek, executive director of the STC

1 0 | M A R C H 2 0 1 7 | I A S OY B E A N S .C O M

Investing Checkoff Dollars

“Automation is a discussion we are constantly having here at the Iowa DOT as it has the potential to change our business quite a bit from the aspect of safety, legislation and roadway design,” says Andrea Henry, Iowa DOT director of strategic communications. “It’s on our radar as we watch how things are developing and how we are applying it to the work we do every day.” The Iowa DOT is partnering with the University of Iowa, Iowa State University and HERE of North America to develop a variety of data streams including high definition maps of the Interstate 380 corridor from Iowa City to Cedar Rapids. This data including predictive traveling models look at real-time traffic, hazards and other considerations, ultimately allowing drivers — or vehicles — to make more informed decisions. “We hope to attract those companies interested in developing advanced vehicle technologies to that area,” Henry says. “The project will help to improve the safety and mobility of roadways and the movement of goods and people.” According to Henry, the data gathered from the project could help vehicles make more intelligent decisions on routing and safety. It would remove decision points that could cause error. As vehicles make decisions for the driver, it would be a huge safety benefit and reduce the number of crashes or severity of crashes significantly. Henry also believes a lot the data streams will be useful for those in the

Andrea Henry, Iowa DOT director of strategic communications

“AUTOMATION IS A DISCUSSION WE ARE CONSTANTLY HAVING HERE AT THE IOWA DOT AS IT HAS THE POTENTIAL TO CHANGE OUR BUSINESS QUITE A BIT FROM THE ASPECT OF SAFETY, LEGISLATION AND ROADWAY DESIGN,” — Andrea Henry agriculture community in a number of ways we haven’t even imagined yet. “The technology will also be transferable to an agricultural setting to help with farmers in the field or movement of their products,” Henry says. “A lot of these technologies are going to have crossover.”

Current technology use

Even though use of autonomous truck technology in the agriculture industry is not imminent, technologies driving efficiency and safety in the trucking industry are growing in popularity.

Landus Cooperative currently equips all their trucks with a telematics system that allows for easy and accurate operation metrics which cut costs on truck usage and maintenance, a good thing for overall cooperative costs. According to Eischeid, Landus Cooperative also is testing an automatic drive to replace manual drives to keep their trucks as efficient as possible. Initial feedback from drivers is very positive. “In the cooperative space, it seems like we are an early adopter of the telematics technology,” Eischeid says. “We hope farmers see its use as a benefit because this is their cooperative and if it helps us save money, it is returned back to them.”

M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 1 1

Investing Checkoff Dollars

Informed Decision Making:

PRACTICAL USE OF VRT By Allison Arp

owadays there are plenty of new devices and methods that are supposed to make farmers more profitable, but only one lets them decide how to do it. Modern variable rate technology (VRT), using GPS monitors and prescriptions, has been around for approximately 20 years. Originally used for fertilizer application, it has now expanded to incorporate planting populations and more recently, sidedressing. “In On-Farm Network® research, we routinely see tremendous promise for VRT,” says Scott Nelson, ISA OnFarm Network director. “For example,

“

in multi-genetic planting we saw 10 to 20 bushel yield advantages as well as positive outcomes for variable rate nitrogen.” One of the more common ways to use VRT is to first create management zones (Figure 1.) These zones allow farmers to see where areas of high, normal and lower productivity are located across the field. Often, farmers already have an idea where they get the highest and lowest yields and these zones are visual confirmation. To make a polygon image like the one in Figure 1, management zones are made using a combination of historical yield data, soil test results, soil types

I ’ D R AT H E R G O TO M Y B A N K E R ’ S O F F I C E

A N D B R AG A B O U T P R O F I TA B I L I T Y T H A N

”

G O TO T H E B A R A N D B R AG A B O U T Y I E L D.

— David Ausberger, Jefferson farmer

12 | M A R C H 2 0 0 1177 || IIA ASSO OY YB BEEA AN NSS..C CO OM M

or other information. That data can then be taken a step further and a prescription can be made to apply a different rate of product for each of the three different zones types. “When VRT first began, few farmers had enough data to create good management zones and were forced to use tools which were not designed for precision agriculture,” Nelson says. “Now, many farmers have at least five years of yield data, with some having much more. In addition, with advances in remote sensing and electronics, farmers have access to an increasing amount of good data to create management zones.”

Investing Checkoff Dollars

VRT IMAGES Once the prescription is created and uploaded, application can start. Farmers should know that the as-applied map they get upon completing the application will resemble the polygon image their prescription was based on, but it will not be an exact duplicate. Figure 2 shows an as-applied map from the same field that was featured in Figure 1. The images are comparable. The main difference in the two images are the alternating “fingers” left by the machine in Figure 2. These are unavoidable because as good as technology is, there is still a slight delay between when the machine is told to start the next rate and when the rate starts being applied. The same happens when it is told to stop the rate. While this is a challenge with VRT, it should certainly not dissuade farmers from trying it. “There is an old saying that goes ‘perfection is the enemy of good,’” Nelson says. “In precision agriculture, we still face limitations in creating perfect management zones. This however, does not mean that we can’t increase profitability by using good zones instead of waiting for someone to develop perfect zones.” While increasing profitability is the common goal among farmers using VRT, there are two ways they can go about achieving it. One way is to

use VRT to reduce inputs on underperforming areas to become more efficient and cut costs. The other is to use VRT to increase inputs on underperforming areas to increase the likelihood those areas will produce. Two very different mindsets, but both can use VRT to achieve profitability ISA farmer member David Ausberger of Jefferson has used a couple different methods of VRT with his goal being to make his operation more efficient to become profitable. “I’d rather go to my banker’s office and brag about profitability than go to the bar and brag about yield,” Ausberger says. “Yield is certainly a component of profitability, but I want to operate the most efficient business I can.” While most farmers opt for the same plan as Ausberger, some farmers do chase the highest yields and opt for increasing inputs to achieve it. There is no wrong way to use VRT, it all depends on the farmer’s goals. When that next wave of technological innovations hit the field, those with VRT experience will be poised to be the first to reap its advantages. “The pressure and attention on agriculture technology is at an all-time high,” says Ausberger. “If you thought things were changing fast over the last 10 years, wait for the next 10.”

Figure 1: A polygon image of management zones is often the first step towards creating VRT prescriptions.

Figure 2: VRT as-applied images will resemble the polygon images used to create the prescriptions, but they aren't identical because of the timing of turning the variable rates on and off.

M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 1 3

Investing Checkoff Dollars

Turning Toys into

PROFITABLE TECHNOLOGY By Easton Kuboushek

very farmer can remember the excitement of Christmas morning. The rush of running to the living room and unwrapping a shiny new model tractor with a matching gravity box or the classic old-fashion wood barn complete with fences and plastic cows. The truth is the excitement never really fades. Farmers’ toys just get bigger and the technology becomes a tad more tantalizing. In recent years, unmanned aerial vehicles (UAVs), commonly called “drones,” have literally taken off as one of these new toys. But within this high-flying tech lies an opportunity for farmers to improve profitability. “It’s not going to fix a problem immediately, but drones can help you make adjustments next season,”

“

says Phil Pitzenberger, Iowa Soybean Association (ISA) farmer-member from Greene. “For me, it’s been identifying management changes for the future — that’s been the biggest value.” Pitzenberger has always been fascinated by technology. When drones came on the agriculture scene, it was natural he’d find a way to incorporate them into his corn-soybean and custom spraying operation. “When I first got started, I knew I was just going to be flying it over fields looking for problem areas,” says Pitzenberger. “I wasn’t sure what it was going to show me, but the results came really quick.”

Pitzenberger noticed patterns perpendicular to his corn rows. The birds-eye view revealed an aerial fungicide application was poorly done, covering only 50 percent of the field.

I T ’ S R E A L LY A B O U T G E T T I N G YO U R H A N D S O N T H E

E Q U I P M E N T. D R O N E S T H R E E Y E A R S AG O W E R E E A SY TO F LY — TO DAY, T H E Y ’ R E E V E N E A S I E R .

”

— Dennis Bogaards, ISA farmer-member from Pella

1 4 | M A R C H 2 0 1177 || IIA ASSO OY YB BEEA AN NSS..C CO OM M

Investing Checkoff Dollars

“When it came to harvest I watched the yield monitor just to compare — it was like driving through waves,” Pitzenberger says. “I learned I need to improve how I apply fungicide.” As a result, Pitzenberger and his family bought a Hagie, which also turned into a custom spraying business. He laughs saying, “It’s funny, but I trace it all back to that one look from the drone.” Pitzenberger also has used his drone to identify compaction, anhydrous and manure application issues. “Once I was up in the air, it was easy to tell but from the road you couldn’t make rhyme or reason out of it,” he adds. Abnormal patterns are also a key insight gleaned by Dennis Bogaards, ISA farmer-member from Pella. “I always tell farmers Mother Nature rarely works in patterns,” Bogaards says. “One of the first times I flew a drone, I noticed patterns in my fields and from the drones I couldn’t tell what it was. So I started walking through my field and realized it was a nitrogen issue.”

Earlier that spring, Bogaards had applied anhydrous at a ten-degree angle to his intended corn rows. The drone revealed a pattern of varying plant sizes and stages of root development across the field. Seeds planted at the intersection of the row and the knifed-in nitrogen application were much healthier than those planted between the rows, which were as much as 15 inches away. The next planting season, Bogaards offset his nitrogen application 5 inches and ran parallel with the rows using GPS — a small change that payed dividends at harvest. “It makes a big difference in evaluating and understanding the problems in your fields,” Bogaards says. You’re going to see a different view of your field and be able to ask questions on how to improve.”

Getting started with drones Both Bogaards and Pitzenberger insist getting started with drones is not as difficult as farmers think. In most cases, it just takes trying it out.

“It’s really about getting your hands on the equipment,” Bogaards says. “Drones three years ago were easy to fly — today, they’re even easier.” Bogaards has been flying for four years. He now serves as a drone coach and consultant for farmers, and dealer for FlyingAg, a drone service and retailing company. “Most guys starting out just want to have something that’s easy to get out and up in the air to take a few pictures,” Bogaards says. “That’s a great place to start. Then after you get really comfortable with the controls and maneuverability, start looking at the more advanced things you can do.” Both Bogaards and Pitzenberger fly DJI brand drones. Pitzenberger has owned the Phantom II and Phantom III Advanced. Recently, he bought an Inspire II. “We’re just beginning to see what we’re going to be able to do with these things,” Pitzenberger says. “They’re already telling us a lot of information but I can’t even imagine what’s going to come over the next 10 or 20 years.”

THE DRONE REVEALED A PATTERN OF VARYING PLANT SIZES AND STAGES OF ROOT DEVELOPMENT ACROSS THE FIELD. Drones appeal to urban neighbors as well. Phil Pitzenberger (above) shares his passion for drone technology with participants on the Iowa Food and Family Project Expedition Farm Country last August. M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 1 5

Investing Checkoff Dollars

By Matthew Wilde

ll signs point to yes when it comes to more soybean acres in 2017. Commodity experts and farmers didn’t have to shake a Magic 8 Ball — or wait until this month’s U.S. Department of Agriculture (USDA) Prospective Plantings Report — to know the nation’s soybean farmers will plant a record number of acres. Economics and demand almost ensure it, experts say. “When you look at potential returns and prices, everything is leaning toward more soybeans (and less corn),” says Chad Hart, Iowa State University (ISU) Extension and Outreach grain economist. Hart and John Baize, an oilseed analyst from Falls Church, Virginia, predict 87 to 88 million acres of soybeans will be planted in the U.S., though some industry estimates are slightly higher. Last year a record 1 6 | M A R C H 2 0 1 7 | I A S OY B E A N S .C O M

83 million acres of soybeans were harvested, according to the latest U.S. Department of Agriculture (USDA) data. In Iowa, Hart and Baize forecast an additional 500,000 acres of soybeans will go into the ground this spring. Last year, 9.5 million acres were combined, records show. “Soybean acres will grow. How much more depends on prices,” Baize says. One planting indicator is the corn/ soybean price ratio. If it exceeds 2.5, it favors soybeans. It’s exceeded that and then some from harvest through January. “That’s why there will be more beans. The acres will come from corn (4 million less), wheat and CRP (Conservation Reserve Program),” Hart adds. Baize and Hart outlined several other reasons why more soybeans will be planted:

• Strong soybean yields. Recent record crops, especially in non-traditional soybean states, boost grower confidence. • Continued strong demand as evident by record soybean exports last year. • Less risk. It costs considerably less to plant soybeans than corn, a factor during a down farm economy. • U.S. corn exports pressured by South America and the Black Sea region. “We’re going through a period where it looks like soybeans are the chosen crop for farmers,” Baize says. DuPont Pioneer seed dealer Justin Crawford, an Iowa Soybean Association farmer member from Adair, agrees with the national and state acreage forecasts. However, his clients and family’s row crop and cattle operation won’t significantly contribute to the added soybean acres.

Investing Checkoff Dollars

IN IOWA, HART AND BAIZE FORECAST AN ADDITIONAL 500,000 ACRES OF SOYBEANS WILL BE PLANTED THIS SPRING. Crawford says the percentage of acres planted to corn and soybeans stays relatively the same — 55 percent corn, 45 percent soy, he says — in his region. “We have tougher terrain and it’s harder to go corn-on-corn,” says Crawford, whose family owns Adair Feed & Grain. “In our little corner of the world, we don’t see much of a shift. We like what the rotation provides us.”

Economics and marketing

Barring weather problems, experts say more acres likely means another bumper crop that could eventually put downward pressure on prices. Inking some contracts on oldand new-crop beans may allow farmers to lock in a profit on those bushels or at least minimize losses, officials contend. Profit potential was the driving force behind planting decisions in the mid-

2000s, Baize says. Risk minimization is more so today. Based on current prices and cost of production estimates, Hart forecasts row crop losses on ground that isn’t farmer-owned at $25 to $50 per acre. “The bottom line is a lot of farmers are hurting financially,” Baize says. “If you have limited cash and there’s less input costs with soybeans and better potential profit outlook, you will plant more beans.” The market has accounted for (priced in) Chad Hart additional U.S. soybean acres and current demand, Baize and Hart say. But if more acres are planted than expected and bin-buster harvests occur again here and in South America, Baize doesn’t rule out $8 per bushel soybeans in the fall.

“Things could get bad quickly,” Baize says. “If the goal is to farm next year without burning up your capital, you may want to lock in prices that cover costs and keeps you in the game.” However, that doesn’t mean better prices aren’t ahead. Losses were estimated at $100 per acre last year, but a $3 rally in soybean prices last spring along with record yields helped most farmers turn a profit. “What the markets will be watching for as we get closer to planting is demand,” Hart says. “Even though acres increased last year, prices strengthened in the spring since (buyers) felt demand was there to work through supplies. We’ll be looking for the same hopeful signals this spring.” Crawford will pay close attention to industry acreage estimates, prices and the USDA March 31 Prospective Plantings Report. All three will affect future marketing decisions. He knows more acres likely means more bushels and potentially lower prices. “If you can lock in at least some profit you do it. Margins are so tight,” Crawford says. “More bushels is pretty bearish for beans. But the markets hardly ever react like you think they should.”

“

IF YOU HAVE LIMITED

CASH AND THERE’S

LESS INPUT COSTS WITH SOYBEANS AND BETTER POTENTIAL PROFIT OUTLOOK, YOU WILL PLANT MORE BEANS.

”

— John Baize, oilseed analyst from Falls Church, Virginia

M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 1 7

Investing Checkoff Dollars

INSIDE CHINA

China’s Aquaculture Expansion:

A GROWING MARKET FOR IOWA SOYBEANS By Jane Li

hina is the world’s largest producer, consumer, and processor of aquaculture products, accounting for 40 percent of global aquaculture output. Industry growth, a decreasing supply of fishmeal, and the nutritional value of soymeal as an alternative protein create opportunities for Iowa soybeans. According to the National Bureau of Statistics (NBS), China’s aquaculture production grew from 45.8 million tons in 2006 to 66.9 million tons in 2015, among which farm raised fish accounts for approximately 75 percent. Total aquaculture production is projected to further increase to 74.98 million tons by 2025, with over 78 percent being farm raised fish. While exports still dominates the industry, rapidly growing domestic demand has driven development in recent years. Chinese per capita fish consumption went from 11.5 kg in

1 8 | M A R C H 2 0 11 77 || IIA ASSO OY YB BEEA AN NSS..C CO OM M

1990 to 25.4kg in 2004 and will reach 35.9 kg in 2020, according to the FAO. Beijing municipal data indicates that urban Chinese fish consumption already surpasses 40 kg per person and is projected to increase. Aquaculture expansion leads to growing demand for aqua feed. Feed cost is usually the single greatest operation expense of intensive fish culture, accounting for 50 percent or more of total operation costs. For the past several decades, fishmeal has been the primary feed used. China is now the second largest producer of fishmeal in the world after Peru. After years of prosperity, the industry is facing several growing challenges. First, wild fisheries are under significant pressure due to demand for fishmeal and fish oil made from wildcaught species. Many of the species of wild fish used for feeds have been fully exploited or overexploited. Second,

most fishmeal plants are privately or collectively owned by fishermen who generally lack the technology and ability to control quality. Third, compliance with industry-wide quality standards and production requirements continues to be a challenge. Decreasing raw material supply and production inefficiencies are leading to higher costs in China’s domestic fishmeal production. Currently, China consumes 1.21.5 MMT of fishmeal annually. With 400,000 metric tons of domestic production, China relies heavily on imports. The nation imports 1.2 million metric tons of fishmeal annually, around one-third of the total world trade. Much of what China imports comes from Peru, the world's biggest fishmeal producer. In value terms, purchases from Peru totaled $1.7 billion in 2015, up 12 percent over the previous year.

Investing Checkoff Dollars

China’s demand has become a determining factor in fishmeal prices on the international market. Fishmeal prices have become more unstable in recent years due to decreased global supplies and the El Niño weather effects on Peru. A dearth of rich protein supplements has become a serious issue in China’s aqua feed industry. Improved processing technology and increased information about nutrition have driven Chinese feed millers to seek protein substitutes over the past decade. Soybean protein has been identified as having the best amino acid profile of all protein-rich plant feedstuffs for meeting the essential amino acid requirements of fish. It is also considerably less expensive than fishmeal. Some Chinese feed millers comment that once the ratio of fishmeal to soymeal prices reaches 4.7:1, it becomes attractive for feed producers to adopt soymeal as an alternative raw material. Studies show that soymeal can make up 50 percent or more of feeds for carp and tilapia, species that make up nearly two-thirds of freshwater aquaculture production in China.

A 55 percent soy diet for tilapia not only grows tilapia quickly and with a high feed conversion efficiency, but it provides a healthy 2:1 ratio of omega 6 to omega 3 fatty acids. Reducing the requirements for fishmeal and fish oil in aqua feeds will also help to reduce aquaculture’s environmental impact and increase industry sustainability, which is in line with the Chinese government’s approach of seeking a pathway toward more sustainable fisheries and aquaculture management. It is estimated that the soymeal market in aquaculture has doubled in China over the past decade, reaching approximately 9 MMT in 2016. The Chinese aquaculture industry believes that the potential for increased use of

soymeal in aquaculture is substantial because of its nutritional value and cost effectiveness. Aquaculture will benefit from genetic improvements in soybeans, advances in feed processing and related technologies. Unlike other animal husbandry industries that deal with a limited number of species or varieties of a single species, aquaculture is characterized by the production of dozens of species with widely varying feeding habits and nutritional needs. In order to capture the marketing opportunities, there is a continuing need for the Iowa soybean industry to support the development of advances in fish nutrition research and technical support to China’s aqua feed industry.

Xueqing (Jane) Li |

Li is a Principal at Ag Food Consulting (AFC), located in Washington , D.C. and has nearly 16 years experience in agriculture including extensive knowledge of industry, association and government network in China.

M MA ARRC CH H 220 01177 || II A A S OY B E A N S . C O M | 1 9

Investing Checkoff Dollars

Stewardship key to curb

herbicide resistance By Matthew Wilde

Editor's Note: The next two stories are part of a herbicide resistance series that debuted in the February issue of the Iowa Soybean Review. Read about what farmers and academia think about herbicide and biotech trait stewardship.

armers are heading “Back to the Future” to raise weed-free soybeans again. That doesn’t mean hopping in a time-traveling DeLorean to go back to 1997 when Roundup Ready® soybeans — genetically modified to tolerate Roundup® and other glyphosate-based herbicides — hit the market. The trait and chemistry combo provided years of cheap, easy weed control. While it would be nice to return to the days before glyphosate became less effective due to herbicide resistance, those days are long gone. After all, no one has invented the flux capacitor — yet — to make time travel possible. But that doesn’t mean clean fields can’t be part of every farmers’ future. New biotech traits, innovative twists on

2 0 | M A R C H 2 0 1 7 | I A S OY B E A N S .C O M

old chemistries, mechanical and laborintensive weed control measures and history lessons can help make it happen. Iowa Soybean Association (ISA) members say farmers need to rededicate themselves to chemistry and trait stewardship and be willing to consider all options to eradicate yieldrobbing weeds. “We have to step back to an integrated weed management system,” says Amy Asmus, a farmer and owner of Asmus Farm Supply Inc., of Rake. “I’m excited for new tools that will come in a jug or bag, but we can’t rely on them 100 percent.” Here’s a few of the latest offerings by seed and chemical companies to battle herbicide resistance: • Monsanto’s Roundup Ready 2 Xtend soybeans genetically engineered (GE) to tolerate XtendiMax™ with VaporGrip™ Technology, a lowvolatility dicamba herbicide, and glyphosate. • Dow AgroScience’s Enlist™ weed control system. Seed is engineered to tolerate glufosinate, glyphosate and 2,4-D choline herbicides. • Bayer’s LibertyLink® soybeans are tolerant of Liberty® herbicide. It has no known resistance issues.

• Engenia™ herbicide from BASF is a new formulation of dicamba for dicamba-tolerant soybeans. Asmus, who sells crop protection, seed and other products, says reformulations of existing dicamba and 2,4-D herbicides to minimize volatility and registered for biotech seed options will help but farmers need learn from the past. Repeated use of any herbicide(s), regardless of the GE crop trait, selects weeds to evolve resistance. “As we move forward, if we don’t steward (new chemistries and traits), we’re going to select for resistance as quickly, if not quicker, than we did with glyphosate,” Asmus says. “If that happens we will have nothing … we’re limited with the technology that’s coming. “We will go back to big farm families and kids walking beans. People laugh when I say it, but it’s true,” she adds. “It’s imperative that we learn the new tools, follow the rules and take care of what we have.” Asmus delivered this message recently at the ISA Research Conference in Des Moines. Her topic, “Weed resistance: We are all in this together,” covered a host of options to help solve what she calls a “truly wicked problem.”

Investing Checkoff Dollars

That includes resorting, if needed, to old weed control methods like cultivation and pulling waterhemp, marestail and Palmer amaranth, among other pests, by hand.

Fredericks continues. “Expand the use of pre- and post-emergent programs. Use multiple modes of action every time you spray and rotate chemistries and traits in the crop rotation.”

“With a neighbor who farms organically, I’m used to watching what and when I spray,” Hemmes says. “I won’t go off label.”

A new mentality

The future

Being passive or not admitting herbicide resistance continues to be a big problem, farmers say, especially as Palmer amaranth, a relatively new invader of Iowa fields, takes root. The weed has wreaked havoc in the South, slashing yields. It’s now been identified in 49 counties in Iowa, up from just five a few years ago. Unlike its relatively wimpy cousin common pigweed and waterhemp, Palmer is tough and can outcompete row crops for space, water and nutrients. Roger Hargrafen, an ISA member from Letts, has been battling Palmer for three years. His aggressive management plan — varying herbicides with multiple modes of action, hand weeding, cleaning machines and sowing cover crops, among other things — kept the nasty weed in check. “You don’t mess around with it. You need to be assertive,” Hargrafen says. “With what we know about resistance, just because something is working doesn’t mean you keep using it.”

Farmers have to get over the New weed control tools give mentality the answer is in a jug, farmers an opportunity to address Asmus says. herbicide resistance. That will be a tough sell for April Hemmes, an ISA Board many producers, according to Wayne member from Hampton, is going all Fredericks of Osage. The past ISA in. She’s planting all Roundup Ready 2 president says Xtend soybeans this Roundup herbicide spring — 350 acres. spayed once or “Resistance has twice over the top gotten worse,” she of Roundup Ready says. “Last year I soybeans was so had giant ragweed effective farmers that I sprayed used it too much. twice and I still “It's been the had issues. Plus, Wayne Fredericks most effective waterhemp is hard herbicide in my to control.” lifetime,” Fredericks says. Hemmes hopes planting Xtend Roundup worked so well, some beans, which will allow her to spray farmers cut rates to save money. But one of the new dicamba formulations that hastened resistance because of and glyphostate over-the-top, will help weed escapes. solve her weed problem. But she knows It’s a costly mistake Fredericks better than to repeatedly use them. hopes farmers won’t repeat. Reading Despite the possibility of dicamba and following label instructions is a drift that could damage sensitive must, he says. non-target crops and threatened “All the money we saved using endangered species, Hemmes — who Roundup will need to be spent now,” sprays her own crops — isn’t worried.

Be aggressive

“

I’M E XCIT ED FO R NEW TOOL S

T HAT WIL L COME IN A JUG OR BAG, BUT WE CAN’T RE LY ON T HE M 100 PERCE NT.

”

— Amy Asmus Ph.D., a farmer and

owner of Asmus Farm Supply Inc., of Rake

M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 2 1

Investing Checkoff Dollars

No Easy Solution: Change Required By Matthew Wilde

owa State University’s (ISU) foremost weed experts readily admit they’re “glass half empty” and “glass half full” kind of guys when it comes to herbicide resistance. Mike Owen is a bit of a pessimist on the subject. He contends most farmers don't believe herbicide resistance is a problem. Owen is concerned many think new formulations of existing herbicides and biotech traits are the answer to weedfree fields again. The risks associated with their use, he says, may outweigh the rewards. “My perception is that (farmers think) the industry has ridden in again on a white horse (like Mike Owen Roundup® herbicide and Roundup Ready® soybeans) with new traits and herbicides,” Owen says. “These are not the savior … not even close. The learning curve for using herbicides for which these traits have been developed is real steep.”

2 2 | M A R C H 2 0 11 77 || IIA ASSO OY YB BEEA AN NSS..C CO OM M

Bob Hartzler, Ph.D., on the other hand, says more people — especially young farmers and agriculture students — admit there’s a problem. And they acknowledge it will take hard work and dedication to solve it, he says. “There is hope for the future,” Hartzler says. “I teach a weed science class and this is the first year where students, who will be out working for companies, running farms and working with farmers, said they understand there isn’t an easy solution. In previous years … they thought companies will solve the problem. “Now they understand herbicide resistance is real and we need to change how we go about fighting it,” he adds. Owen and Hartzler agree new crop protection tools and biotech traits are not the answer to reverse the growing resistance trend, but the agronomy and weed specialists say they’re part of the solution if used judiciously. They differ, somewhat, on what the future holds pertaining to their use.

Monsanto’s Roundup Ready® 2 Xtend soybeans genetically engineered to tolerate XtendiMax™ with VaporGrip™ Technology, a low-volatility dicamba herbicide, and glyphosate will be available this year. The company estimates 18 to 25 million acres will be planted. Dow AgroScience’s Enlist® soybeans, genetically engineered to tolerate glufosinate, glyphosate and new 2,4-D choline, is slated to be rolled out in 2018. Enlist corn is expected to be available this year. BASF recently introduced Engenia™ herbicide, a new formulation of dicamba for dicamba-tolerant soybeans. Bayer’s LibertyLink® soybeans, engineered to tolerate Liberty® herbicide, isn’t new but is known to have no resistance issues. Despite the industry’s best efforts to reformulate existing herbicides like dicamba and 2,4-D to be less volatile and provide rules to minimize drift, Owen fears damage is likely to occur to sensitive, non-target crops and threatened and endangered species. Volatility is the movement of the gaseous form of a herbicide after it has

Investing Checkoff Dollars

“

DRIFT HAS ALWAYS

BEEN AN ISSUE IN

AGRICULTURE, BUT OUR WILLINGNESS TO ACCEPT MINOR COSMETIC INJURY HAS

”

CHANGED.

— Bob Hartzler, Ph.D., Iowa State

University, Extension weed specialist and professor of agronomy

been deposited on its intended target as a liquid. Drift is the physical movement of spray particles by wind after the particles leave the sprayer and before they reach the intended target. Owen is concerned farmers and applicators won’t read and follow strict label instructions when it comes to pre-mix rules, tank cleanout, buffer requirements, specific nozzles and when and when not to spray, just to name a few, which are designed to minimize potential herbicide damage. “I don’t see a way to avoid issues unless applicators follow precisely what the label says. And there’s still no guarantee,” Owen contends. “My (biggest) concern is contamination of tanks that requires applicators to do a good job cleaning, but that takes time when there isn’t a lot of it.” Hartzler adds, “My half cup full outlook is I want to say it will go well. But my concern is what happens in May if people get behind, then caution

gets thrown to the wind because applicators have thousands of acres to spray.” Even though dicamba and 2,4-D have been used safely for decades on millions of row crop acres and new formulations and rules will help, Hartzler and Owen say there’s still reason to worry. Both agree the landscape has changed with more acreage owners with gardens, vegetable production, organic farms and vineyards than in the past. Several hundred thousand acres of soybeans and high value crops like peaches were severely damaged in Missouri and Arkansas recently due to dicamba drift, though applicators reportedly didn’t use the new formulation or follow best management practices. “Drift has always been an issue in agriculture, but our willingness to accept minor cosmetic injury has changed,” Hartzler says, noting

glyphosate injury symptoms are more subtle than dicamba and 2,4-D. ISU’s weed experts, who travel the state working with producers to control waterhemp, marestail, Palmer amaranth and other pests, say proper stewardship of new chemistries and traits are a must to promote safe, on-target use and prolong their effectiveness. That means farmers must read and follow herbicide labels, rotate chemistries and biotech traits, use multiple modes of action and have a program with pre-, post- and residual herbicides. Owen is skeptical enough farmers will do it. “Simplicity, convenience and low cost are an amazing sirens for growers. And they will steer this ship on the rocks in my opinion,” he says. Hartzler, though, is hopeful that won’t be the case. “There are (a lot of) farms with great weed programs,” he adds.

NEW CROP PROTECTION TOOLS AND BIOTECH TRAITS ARE NOT THE ANSWER TO REVERSE THE GROWING RESISTANCE TREND M A R C H 2 0 1 7 | I A S OY B E A N S . C O M | 2 3

THE STORY BEHIND

THE INDUSTRY’S BEST FARMER-FOCUSED RESEARCH At Beck’s, being a seed supplier means more than delivering a high-yielding product. That’s why Beck’s invests heavily into our Practical Farm Research (PFR)® program. A program that goes beyond the seed and focuses on the industry’s latest farming technologies and management practices. Because it’s difficult for

farmers to evaluate all the options, PFR delivers replicated data from over 100 studies at six research locations across the Midwest. If a product performs well, we publish it. If it doesn’t perform well, then we still publish it. The results speak for themselves and the goal remains the same — to help farmers succeed.