GRAIN DRYING
PLAYS A VITAL ROLE FOR FARMERS Page
SD growers not responding to beer boom
NO BARLEY FOR BREWERS Page 5
8
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GRAIN DRYING PROCESS PLAYS VITAL ROLE
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Tom Randall watches as the corn fills up the back of a trailer at Central Farmers Cooperative in Salem. Matt Gade / Republic
Features
No barley for brewers
5
Hungry men make it hard to feed them
11
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South Dakota Farm & Ranch is a monthly agricultural publication dedicated to informing South Dakota area farmers and ranchers about current topics, news and the future of agriculture. This publication fits the niche of our unique farmers and ranchers of South Dakota, and the diverseness we have in our state. Although the Missouri River divides our state, we are all South Dakotans and thank the land for supporting us each and every day. You, our readers, may be livestock ranchers, or row crop farmers, and everywhere in between, however, we all have a common goal in mind. We feed and support the growing population and want the next generation to find that same love, dedication and support that agriculture can offer. To subscribe to this FREE publication, contact South Dakota Farm & Ranch.
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NO BARLEY FOR BREWERS SD growers not responding to beer boom By Jake Shama for South Dakota Farm & Ranch Hop fields grown and managed by A Homestead Brew are pictured near Valley Springs, about 10 miles east of Sioux Falls. (Courtesy photo)
B
rewing beer has become an artform for microbreweries across South Dakota, but before they can pour the perfect pint, brewers first need to find quality ingredients from a trusted source. For A Homestead Brew in Valley Springs, that source is their own backyard. A Homestead Brew started selling brews to the public in 2017, but brewer Lee Anderson and his brother started growing hops on the family farm five years earlier. “We just started talking about how to use the family farm and work together and get something that’s sustainable,” Anderson said. Today, the brothers plant five varieties of hops over six acres. They harvested about 4,000 pounds last year, 3,000 of which went directly into their own brews. But hops is only one ingredient in the beer-making process, and there’s another ingredient that’s not so easy to come by in South Dakota. The vast majority of beers are brewed with barley, a grain that is soaked and allowed to ferment, yielding malted barley. According to Lance Honig, Chief of Crops Branch at the National Agricultural Statistics Service, 48,000 acres of barley were planted in South Dakota this year. However, barley acres have dropped considerably over time. Honig said South Dakota farmers planted 63,000 acres in 2008, 115,000 acres in 1998 and 700,000 acres in 1988. South Dakota isn’t alone in this trend. In fact, Honig said acreage planted across the country in 2018 was the second lowest on record.
to make food for people and livestock, which may be produced with varieties of barley that are not conducive to brewing. “They really take a chance growing that brewer’s barley because it’s a lot more susceptible to disease and stuff, whereas the feed barley is just a lot hardier,” Kilroy said. “So it’s kind of a gamble for a farmer to dedicate that much land to brewers barley.” Instead, much of the nation’s barley is grown in other northern states. According to NASS, Idaho is expected to produce 53.5 million bushels of barley this year, followed by Montana with 33.6 million and North Dakota with nearly 28.5 million. Nearby Minnesota and Wyoming are expected to produce at least 5 million bushels each.
Bring in the barley While agricultural interest in barley has waned, consumer interest in beer, one of the crop’s most well-known uses, has ballooned in recent years through the growth of microbreweries. Of 24 breweries listed on TravelSouthDakota.com, at least 13 were founded in 2010 or later. Six did not list a founding date. As breweries boom, they must look outside the state for ingredients. Mike Kilroy, brewmaster at Rapid City’s Firehouse Brewing Company — the oldest active brewery in the state — said he gets malted barley from Shakopee, Minnesota, provided by Brewer Supply Group. “There’s very little brewer’s barley grown in South Dakota,” Kilroy said. NASS estimates 715,000 bushels to come from the South Dakota harvest, but it may be used for purposes other than malting for beer. The crop is also used
NO BARLEY: Page 15 OCTOBER 2018 SOUTH DAKOTA FARM & RANCH 5
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GRAIN STORAGE: Climate Inside The Bin By Laura Edwards, SDSU Extension State Climatologist and David Karki, SDSU Extension Agronomy Field Specialist
G
rain storage begins with harvest, as drying and storage go hand-inhand. Usually artificial drying allows: 1) Harvesting when the crop is ripe and mature 2) Proper storage that preserves seed quality. Even though storage will not necessarily improve the quality of the harvested grain, it helps maintain the existing quality. Harvesting at a proper moisture level is important. So is reducing handling and mechanical breakage of the seed/grain where possible. Grains harvested at ideal temperatures may allow for temporary storage without further drying, however, the recent rain and cooler temperatures on the horizon may not provide that option of drying down naturally to the right moisture content. The ideal moisture for soybean harvest is 13 to 15 percent. Soybeans can be harvested as soon as seeds are mature and foliage is dry, but seed above 18 percent moisture does not thresh well. When storing grain for extended periods of time, as in months up to a year, it is important to dry the grain quickly, and minimize humidity and temperature fluctuations in the bin. Soybeans should be at 11 percent moisture for long-term storage. These recommendations are lower than typical harvest or market moisture, but they will help regulate temperature and minimize mold growth and pest infestations while preserving grain quality. Soybeans are often more fragile than corn and may be susceptible to more cracking of seed coats or the seed itself. Many newer bins have technology that can monitor conditions both inside and outside of the bin. These bins may even have switches to operate fans when needed. Without this technology, however, it is up to the grower to ensure that grain is stored in ideal conditions. Although uncommon, a fan cover can be a simple addition to any bin. Covers help reduce temperature fluctuations due to air brought into bins by wind. This can prolong grain storage by maintaining cool temperatures, especially
in long-term storage situations. Roof vents are equally important in maintaining bin temperature to allow hot air above the grain to escape. Vents can also help prevent grain from increasing in temperature. A 10 degrees Fahrenheit decrease in temperature can approximately double the number of days the grain will remain in good condition in storage with humidity staying the same.
Natural Air, Low Temperature, or High Temperature Drying?
There are three ways to dry grain: using natural (unheated) air or by high or low temperature dryers. North Dakota State University Extension suggests that soybeans can be natural air dried after harvest in October to about 12 percent moisture content. From mid-October to mid-November, natural air drying can reduce soybeans to about 13 percent moisture content. As an example, after using natural air drying to 12 percent, low temperature drying can be used to increase the temperature by 5 degrees to dry the grain to 11 percent for long term storage. When reaching moisture levels below 11 percent, damage to the seed and seed coat is likely to occur. Once the ideal moisture content is achieved, these conditions should be maintained in the bin. Seed soybeans should not be dried at temperatures above 100 degrees Fahrenheit as it will affect their germination. Care should be taken with temperatures above 110 degrees Fahrenheit with a batch dryer. For a continuous flow dryer, temperatures above 130 degrees Fahrenheit should be avoided. Soybeans are more sensitive to high drying rates. Research has shown that seed coat and seed breakage occurs more often at high temperatures, with as much as 50-90 percent breakage.
CLIMATE: Page 12 OCTOBER 2018 SOUTH DAKOTA FARM & RANCH 7
GRAIN DRYING PROCESS By Sam Fosness The Daily Republic
SALEM — On a rainy early October afternoon, Phil Madsen watched a semi-truck full of corn harvested by a farmer roll into the grain elevator and his work begins. Madsen directed them to the grain-drying area if the moisture level is higher than a set average threshold that gives the crop its most value, according to the grain elevator’s discount schedule. It’s a process that Madsen, location manager at Central Farmers Cooperative in Salem, has been all too familiar with this year, as area farmers cope with a wet harvest. “When it’s a wet harvest like this, we face the same issue as farmers,” Madsen said inside the elevator office. “It costs our company to dry corn and beans, and we also run the risk of being unable to dry them to the desired moisture level.” According to Madsen, the grain elevator dryers at Central Farmers Cooperative are powered by natural gas. However, some farmers have propane fueled dryers they are able to use if the moisture level isn’t too high for them to have to use the grain elevators drying process. In South Dakota, soybean and corn harvest season typically start in late September and early October, so the grain elevators are primarily dealing with both crops at this time. The drying process for corn and soybeans vary, but both strive for the same result, which is to aim for a moisture level that gives the crop it’s full value. In terms of soybeans, many grain elevators typically look for a 13 percent moisture level, while corn is
Corn fills up the back of a trailer at Central Farmers Cooperative in Salem. (Matt Gade / Republic)
DRYING: Page 9
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plays vital role for farmers during wet harvest DRYING From Page 8
around 15 to 16 percent depending on the grain elevators discount schedule. For soybeans, there are methods to help dry the grain before a farmer has to decide whether the elevators are necessary to assist in providing a supplemental heat drying process. “When we get some dry and wet harvested beans, we can help blend them together and get the moisture down that way,” Madsen added. “However, everything is too wet this year, so mostly all of the farmers beans have needed drying.” The moisture level of the soybeans ultimately decides if they will be able to make it on the rail to be shipped by train to the purchaser, which is where the term rail soybeans is coined, according to Madsen. To be shipped on the rail, Madsen
said Central Farmers Cooperative rail soybeans can’t have a moisture level higher than 13 percent, so the drying process is vital when a farmer comes to the elevator with wet beans significantly higher than 13 percent. “A lot of soybeans I’ve been taking in haven’t been under 15 and 16 percent, so it shows you how wet this harvest really is,” Madsen said. “Almost all soybeans have had to be dried this year.” Unlike rail soybeans, non-rail soybeans that have a moisture level over 13 percent are able to be sold to a purchaser, but the value of the beans decrease if the moisture level is higher than 13 percent after the drying process. For example, soybeans with a 14 percent moisture level will result in a 3 percent dock of the contract price, according to Central Farmers Cooperative discount schedule for soy-
Matt Gade / Republic
Doug Hoiten of Montrose waits to cover the top of the trailer as Niki Rodriguez probes the corn in the back at Central Farmers Cooperative in Salem. beans. The highest moisture level listed on the CFC discount schedule is 18 percent, results in a 15 percent dock of contract price.
DRYING: Page 11
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DRYING From Page 9
Hungry men
make it hard to feed them By AMY KIRK for South Dakota Farm & Ranch
A
nytime we need extra people to get our cows moved, worked or calves branded, I put on a meal to feed everyone afterwards, or at least I try to. The men who help us, earn their appetite and are ready to eat by noon, but they are difficult to feed. It takes effort and another twenty minutes or so to get them coaxed into the house to dish their plates up. These men downplay that they’re ready to eat. They may be hungry, but they will deliberately delay the process just to make sure they’re not the first to go through the line. Announcing that the food is ready are the labor pains of feeding a crew. Everybody wants to eat, but nobody is brave enough to volunteer going first. They all wait for someone else to step up to the stack of plates or hope some poor sap will get arm-handled by the cook towards the kitchen. Calling everybody in to come and eat is a three part proclamation. The first announcement is going out to the yard and hollering at everyone to come and eat, that the food is ready. This does nothing more than verify that everything is up to temperature, deemed safe to eat and has been pulled out of the oven. No lids or foil come off the hot dishes until the first person comes through. On average it’s another fifteen minutes before that happens. This first
announcement is the crew’s hopeful attempt to eliminate who will be the first to go through the line. My announcement may appear to have fallen on deaf ears but I have a big loud mouth. They all hear me, but they continue visiting. Nobody makes eye contact with me. They avert their eyes to avoid looking in my direction for fear I’ll call on them to start the line. Men standing in a group talking do not break their huddle on the first call. They don’t want their eagerness to eat to be too obvious. The second announcement I come out and say the same thing, maybe add a few more comments to guilt them into coming to eat. There may be some shuffles in the direction of my voice but it’s very slow and comes to a stop after a couple steps. The men farthest away are hoping the guy(s) closest to the door will feel pressured and head into the kitchen. Progress is halted to see if anyone volunteers to go first. Otherwise, they wait until I come back out. By the third announcement I’m recruiting other women from the kitchen to get men moving. I can announce it as loud as my big mouth will carry, but they all pretend they didn’t hear me and are in an engrossing conversation. I might call on the person standing closest to me to come in, but resistance to move
swiftly continues. The crew waits to see if the called on person will actually do it. Moving in the direction of the kitchen is an unspoken movement made by all. No one actually goes in unless someone has gone first, then they all go in as a team. There’s an awkwardness in the air of waiting to find out who’s going to be the first in line. Everybody’s concerned about it. Who’s it going to be? Will it come down to somebody getting hand-picked and dragged in by the cook if no one volunteers to be first? They’re all there to eat, but the pressure of being the first in line is real, and no man wants that pressure — to be the first in the kitchen faced with all the women standing around what feels like vultures waiting and watching. Who is going to the brave soul to take the first divot out of every neatly made salad, cooking magazine-worthy hot dish, and manicured pan of mashed potatoes they all worked hard to look perfect. The older guys are hoping any young teenagers or single guys present will jump in first, taking the pressure off everybody else. Sometimes that works. This is why it’s handy to have a new guy tagging along. Everybody’s okay encouraging the novice to go first.
At the moment, Madsen’s Salem elevator location is exclusively equipped for drying corn, and he has already had to put it to work for some area corn producers. Drying corn is done through a massive continuous flow dryer at the elevator, but a steady flow of corn has to be right above or at a 17 percent moisture level for the elevators to turn the the dryers on. “We are drying our corn at home right now, because we have the capabilities of doing so,” said Collin Gronseth, a local area corn producer. “Some farmers are trying to wait the rain out, but we had to get started harvesting our corn.” Gronseth said some of his harvested corn has had a moisture level of 22 percent this year, which costs him roughly 15 to 18 cents per bushel to reach the desired moisture level of 16 percent. In terms of corn drying, farmers have a difficult choice this year: Extend harvest season in hopes the rain will clear, letting the corn dry naturally in the fields, or succumb to the drying process, whether it be through a grain elevator or at home. Gronseth is leary of extending harvest and combining later, because he said it opens him up to the possibility of experiencing more grain loss. “Given the wet harvest we’re experiencing, the drying process will be slower this year,” Gronseth added. “Some farmers will let it dry in the fields and combine later in the year. But I try not to experience any harvest grain loss, which is why I dry corn instead of depending on mother nature.”
Matt Gade / Republic
Doug Hoiten of Montrose weighs on scale after filling up the back of a trailer with corn at Central Farmers Cooperative in Salem.
OCTOBER 2018 SOUTH DAKOTA FARM & RANCH 11
CLIMATE From Page 7
Equilibrium Moisture Content
Aerate to maintain temperature
Another important factor to consider is Equilibrium Moisture Content, which is the retained moisture content by the grain when exposed to specific temperature and relative humidity for a prolonged period. High temperature in a low relative humidity environment dries the grain faster. A good technical reference for Equilibrium Moisture Content can be found at University of Arkansas Research and Extension.
Moisture and aeration for temperature control are key players in long-term grain storage. Stored soybeans should be aerated to maintain a grain temperature of 35-40 degrees Fahrenheit in the winter (assuming about 60 percent relative humidity), and 40-60 degrees Fahrenheit in the summer. In warm weather, bins should be checked once a week for heating or spoilage. In cold weather, every two weeks is sufficient. — Source: SDSU Extension
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GRAIN STORAGE: What are my options?
BROOKINGS — For many South Dakota crop producers, grain storage is top priority this harvest. “Over the past year, low commodity prices have caused some farmers to hold over more grain than in previous years,” said Sara Bauder, SDSU Extension Agronomy Field Specialist. “In addition, according to some experts, the current tariff situation may affect grain markets into growing season 2019.” Bauder added that these issues, in conjunction with high yields, high humidity, the need for harvest efficiency and commercial storage limitations/fees may cause some significant storage issues. “There are a few storage options available to farmers, but the main priority is a facility that is safe, keeps grain dry, and has aeration for temperature control,” she said. Below, Bauder, along with Jack Davis, SDSU Extension Crops Business Management Field Specialist, outlines some options to consider.
Exit strategy
This is a good time to consider exit strategy or marketing plan for grain. “Every operation is unique, a marketing plan helps growers determine what the best storage option is for them; whether it is at-home storage, paid storage or direct sale,” Davis said. “A producer’s storage decision is based on their storage capacity, ability to manage grain in storage, and the expected returns from storage.” The current projection for 2018-19 marketing year corn supply is 16.879
STORAGE: Page14 OCTOBER 2018 SOUTH DAKOTA FARM & RANCH 13
STORAGE From Page 13
billion bushels, 228 million bushels smaller than last year’s supply. The 2018-19 ending stocks-to-use ratio is the lowest it has been in recent years. Corn harvest bids are currently running at $0.55 below December futures. The soybean supply is projected at 5.113 billion bushel, 302 million bushel larger than last year’s supply. According to September 12, 2018 data, the 2018-19 ending stocks-to-use ratio are at 19.8 percent. “This is the largest it has been in recent years,” Davis said. Soybean harvest bids are currently running $1.50 below November futures. Current commercial storage rates vary from $0.05 to $0.07 per bushel per month. To pencil out what the best option is, Davis suggested producers compare storage rates with their on-farm storage costs; include interest cost, shrink, handling cost, and drying costs. “Returns to storage can be captured by selling the crop for later delivery at a price that exceeds the spot cash price plus the cost of owning and storing the crop,” Davis said. This can be accomplished by use of: ► Forward cash contract: This type of agreement eliminates all uncertainty about the return to storage. Forward pricing eliminates downside price risk but also eliminates a return from higher price levels. ► Selling deferred futures contracts: When selling a deferred futures contract to price the stored crop, the basis levels will still have to be set, which can impact the actual return to storage. ► Storing the crop unpriced in anticipation of higher cash prices: Storing a crop unpriced allows the producer to capture higher prices, but provides no protection from lower prices.
Alternative storage options If a crop producer is determined to store more grain than they have traditional storage space for, there are a few options. Ken Hellevang of NDSU Extension is a regional grain storage expert. Much of the following alternative storage information is adapted from his recommendations for the upper Midwest. Old grain bins: Bins are an opportune storage facility due to their ability to shield grain from precipitation and allow controlled aeration for temperature and moisture control. In a pinch, some farmers may attempt using old bins that have been out of service for many years. This can be done, but safety and functionality are key. Not every bin has a perforated floor; however, they may include in-floor aeration. If no aeration exists in bins more than 3,000 bushels, aeration tubes should be added for temperature control in long-term
14 SOUTH DAKOTA FARM & RANCH OCTOBER 2018
storage situations. Additionally, fan covers and proper aeration of bin roofs (i.e. roof vents) are often overlooked, but considered highly useful tools in keeping grain cool for long periods of time as well. Be sure old bins are assessed for structural integrity, tight seals — especially between the floor and base of the walls — and are sanitized. Grain piles: Commonly seen at grain elevators and cooperatives, piles can be a short-term solution to a grain storage issue. However, open piles are completely vulnerable to moisture damage. Although many believe that wind blowing on an open pile can aerate it, this is simply not the case. A 1-inch rain can increase a 1-foot layer of corn by 9 percent moisture. Covers are available for grain piles that can help shield grain from the elements and direct drainage away from the pile. In addition, aeration systems can be added to piles. Sometimes producers have to weigh the cost of spoiled grain against the cost of a cover and aeration system based upon intended length of storage. Be sure to prepare the ground surface with a substance that has low permeability (lime, asphalt, cement, etc.) and add a crown for proper water drainage. Consider locating piles away from possible flood areas and near electricity if aeration will be used. Grain placed in piles should be dry to control temperature; ideally corn should be at 13-14 percent and soybeans at 11-12 percent moisture. Bag storage: Poly bag storage is often considered a wet grain storage option, but in reality can be used for dry grains as well. Grain should be put in bags dry at the following percent of moisture: ► Soybeans: 11-12 percent ► Corn: 13-14 percent Poly bags do not stop insect infestations, mold growth or heating, making it imperative that grain is properly dried before using bags. Running bags north to south can help reduce moisture issues and keep heat more even throughout the day. Because, if heating within the bag occurs, this type of storage does not allow for controlled aeration. Other farm facilities: Some farms may have older granary spaces or buildings that could be repurposed or put back into service. Remember that grain can push against walls. Buildings may need extra reinforcement. With this in mind, look for bowed walls or other structural issues before attempting to fill such structures. Consider the load the building was designed to withstand before moving any grain. If using a facility not originally intended for grain storage, it’s best to hire an engineer to complete a structural analysis or, at the very least, limit grain coverage to the floor only, which will avoid adding a load to the exterior walls. Sanitizing Facilities Preparing to store grain in any of the above facilities should include thorough cleaning and preparation. “Remember that new grain should never be stored on top of old grain,” Bauder said. — Source: SDSU Extension
From Page 5
South Dakota is 17th on the list, below Maine, Delaware and Arizona. Steve Wolter, sales agronomist for Agtegra in Woonsocket and Wessington Springs, said barley is virtually nonexistent in south-central South Dakota. “We don’t have barley this far south. That’s more of a northern crop,” Wolter said. Wolter said many farmers in the area are considering adding small-grain crops like spring wheat, winter wheat or oats back into their rotation for next year, but he’s still heard of no interest in barley. And SDSU Extension officials say current barley growers are more interested in its use as a forage crop. “I’m not sure if anybody has really tried growing for local markets. By far, the interest in barley is for forage out here,” said Christopher Graham, an SDSU Extension agronomist based in Rapid City.
Brewing up interest However, interest in brewer’s barley may be rising. Graham has been contacted about five times in the past year from potential barley growers, all of them interested in malting barley. If any farmers decide to take up the mantle, South Dakota brewers would take notice. Kilroy already buys hops and wheat from nearby farmers, and he’d be interested in adding more local ingredients to Firehouse brews. “We would definitely be interested,” Kilroy said.
Using an estimated 50,000 pounds of grain per year, Kilroy believes Firehouse Brewing Company is the third-largest brewery in South Dakota, and a local barley source could benefit both the brewery and farmers. Brewers aren’t the only ones looking for local ingredients. Kilroy said patrons do, too. “When I first started brewing for a living eight years ago, I never heard it,” Kilroy said, referring to patrons’ asking about his source for ingredients. “Over the past two or three years though, it’s becoming more common for people to ask.” A Homestead Brew runs a smaller operation, but Anderson said his brewery is interested in buying local grain as well. It just has to be ready to brew, first. “If there was a malting facility around here, that would be incredible,” Anderson said. Anderson has been approached by farmers looking to sell grain, but until it’s malted, he said it’s not ready for use. “Just because you put it in (the ground) doesn’t mean it’s viable yet,” Anderson said. On the agriculture side, A Homestead Brew will stay active in the South Dakota hops community, which Anderson said operates on a total of about 20 acres. That way, there will always be at least one local ingredient right outside his door.
(Courtesy photo) A Homestead Brew brews a new batch of beer at their facility near Valley Springs.
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