Fall Farm Edition 2011 by The Paper of Wabash County

THE PAPER of Wabash County, Inc. www.thepaperofwabash.com

September 28, 2011

Pefley’s Farm Equipment continues investment in Wabash County

THE NEW WASH BAY at Pefley’s Farm Equipment is nearing completion after being rebuilt where the former shop once stood. (photo by Brent Swan) PEFLEY’S FARM EQ UIPMENT any size of will also in equipment. clude a dri (photo by ve thru au Brent Swa ction ring we needed to make business for several by Brent Swan n) big enough to handle After separate fires the investment we years.” After initially work- hit with one of the the machinery busidestroyed two of the did,” David said. Even after attendPefley’s Farm The two buildings ing alongside Alford, worst markets since ness, and I didn’t ing the farm sales, or Kraft Foods, David Equipment outbuild- under construction at Bob was urged to start the Great Depression. think I wanted to David still wasn’t con- was surprised to hear ings, owners Bob and this time, a state-of- his own business. the farm the university’s num“In 1988, I had drive, so I went to col- vinced “Roy was quite a bit enough of the farm lege at Tri-State for a machinery business ber one hiring source David Pefley were left the-art wash facility with two options – and a future drive older than me; I was a machinery business year and another year was his true calling. at the time was Pizza take the insurance thru auction ring, younger guy and so I started trucking,” and a half at IPFW,” “It wasn’t until Hut Restaurants. money and scale the offer the Pefleys a wanted to do things Bob said. “Eventually, David said. “During after I met with my “I knew then what I business back a bit, or chance to continue fast, and Roy wanted Dave got the urge to that time I began to go college guidance wanted to do,” David to make an invest- the line of succession to take it slower,” Bob get back into the busi- to farm sales on the counselor that I real- said. ment into the future started with David’s said. “He told me that ness, so we did.” David originally weekends for guys ized I was going to do I should go into busiand continue to grow father, Bob. David, a 1990 high dad used to do busi- this. At the time, they started small; the first as the company has “I got out of the ness by myself, and school graduate, ness with, and I real- were advertising that sale totaled about 150 since it began in 1955. service in the spring that he’d help me do admitted he didn’t ized I could make the university had a pieces of machinery, “I’ve got four chil- of 1955, and I started that.” want to join the busi- pretty good money 100 percent job place- and was held in conBob would go on to ness straight out of doing this if you are ment rate after gradu- junction dren, including three Pefley’s that sumwith boys, and at some mer,” Bob said. “It run Pefley’s Farm high school. S c h r a d e r willing to work hard ating college.” point in the future I’d was originally south Equipment until the and Expecting the likes Auctioneering “At that time I had and knew about the like them to get of Dora, where Roy late 1980’s, when the no clue what I wanted equipment you were of an Eli Lilly, Re a l E s t a t e o u t o f involved so I decided Alford had ran his farming economy was to do. Dad was out of dealing with.” Johnson and Johnson (continued on page 31)

2011 Fall Farm Tab

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September 28, 2011

Survey: Indiana farmland values reach new heights

Indiana farmland values have hit an alltime high after jumping an average of 24 percent from 2010 – a rate of increase not seen since 1977. According to the 2011 Purdue Farmland Value Survey, statewide increases ranged from 22.8 percent to 25.3 percent because of strong grain prices, low interest rates, strong farmland demand and a limited supply of farmland being brought to the market.

“With high crop demand and prices, the outlook for agriculture is very optimistic relative to other industries,” said Purdue E x t e n s i o n A g r i c u l t u r a l Economist Craig Dobbins. “As long as those strong grain profit margins continue, farmland values are likely to increase.” The survey found that the value of poorquality farmland averaged $4,386 per acre, average-quality farmland $5,468 and

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top-quality farmland $6,521. Dobbins said the trend in Indiana’s farmland values was common throughout the Midwest and Eastern Corn Belt. While the news of a strong farmland market may be good for current owners, it presents a continuing challenge to potential buyers or those who rent farmland. “Cash rents are up about 13 to 14 percent, and those are driven by the same factors as the farmland value increases,” Dobbins said. “But because lease arrangements are made up 12 to 16

months prior to harvest, it is difficult for landlords and tenants to determine an appropriate cash rent. “ Because of grain market variability and weather concerns, Dobbins said there has been increased interest by growers and landowners in lease agreements with flexibility in cash rent. In these situations, the final amount of cash rent due would be determined postharvest. Farmers who want to purchase farmland may also find the increasing land prices challenging. Dobbins

urged potential buyers to think about the possibility of revenue declines and input cost increases before they make final decisions. “Farmers have to think about what a farmland equity loss would do to a specific operation,” he said. While the economy remains volatile, Dobbins said farmland owners are better positioned now to handle a downturn than they were 30 years ago when agriculture struggled to deal with another financial crisis. “It seems farmland is mostly held in

financially strong hands and purchases are being made with modest borrowing,” he said. “We may see a pause or decline in farmland values, but because there is less debt against the land, such a change should not cause financial stress like in the 1980s. Of course, it depends on the amount of actual decline.” This is why Dobbins encourages farmers to do some financial stress testing of their businesses. They need to know where the business will stand if there is a decline in farmland

values of 10 percent or 15 percent, or if the cash flow margin becomes negative. “In this volatile environment, farmers not only need a Plan A, but a Plan B and maybe a Plan C,” he said. For more comments

from Dobbins and a full analysis of the 2011 Farmland

Purdue Values

Survey, log on to the Purdue Agricultural

Economics Report at http://www.agecon.p

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preparing for the harvest season. Hampton is a lifelong resident of Wabash County who got his start in the agriculture business working for his uncle and grandfather at their farms. “I love the ag industry and the interaction with the far mers,” Hampton said. Hampton has two children Kyliegh, 16 and Kolten, 13. He previously was

a sales representative for tillage parts and has worked for elevator facilities. When asked what he enjoys so much about working at the elevator he said the people. “I enjoy the interaction with the people who use the facility,” Hampton said. “I also appreciate the camaraderie between the farmers and what they bring to the county.” Hampton plans to

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September 28, 2011

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Financial crisis delivers indirect blow to agriculture

While the uncertainty on Wall Street directly affects the financial sector, a Purdue Extension agricultural economist says it’s the indirect consequences coupled with weather concerns that has the agriculture industry on edge. Agriculture, with the exception of livestock, has been more resistant to recession, said Mike Boehlje. Much of the demand for U.S. grain comes from the mandated use of ethanol and in exports, which have recovered more quickly in recent years than has domestic demand. “The Chinese economy is growing, and that has increased demand for U.S. grains, especially soybeans,” he said. “We’ve also had short supply problems with grains. “Going forward, the

key concerns for agriculture are less in the capital markets and more in what the U.S. debt problems might do to put us in a recession. The Chinese economy also is important because should it take a hit, export demand would decrease.” Should the United States end up in a “double-dip” recession, Boehlje said, livestock producers could potentially face higher feed costs, reduced domestic demand and lower export demand. “A situation like that certainly has the potential to take the profitability out of livestock production,” he said. One bright spot is that when the markets become unstable, investors are more likely to put their money into real assets rather than financial assets. Real assets

include agricultural commodities, metals and land. Boehlje also said because now is not the time grain farmers borrow, they’re unlikely to see much increase in interest rates. However, livestock producers could see higher rates if they have to borrow to buy feed. While farmers should not ignore the capital markets, Boehlje said the current financial turmoil’s effects are more indirect and focus mostly on demand adjustments. “When there is long-term instability there tends to be a flight to real assets,” Boehlje said. “People move away from financial assets. Agriculture is a real asset industry, so that does offer some protection.” Weather, however, could do more harm

than the financial crisis. Grain farmers could take the hardest hit with yield losses from this year’s extreme weather. It also could cause financial problems for famers who forwardmarketed crops that may not make it to harvest. For consumers, Boehlje said, oil prices have come down in the last few days and food price increases may slow down some. Although that may seem like positive news, it might not be. “An early response to the economic uncertainty has been a decrease in energy prices,” he said. “If we go into a doubledip recession, it could take some pressure off of retail food prices, as well.. But we certainly don’t want that to be the reason for a reduction in price pressures.”

Despite all of the seemingly bad news, Boehlje said agriculture is still strong relative to other industries. “Other industries are downsizing, some even permanently,” he said. “Relatively speaking, agriculture is a good place to be.”

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Public hearings scheduled for proposed rule changes to black bass rules in streams The Natural R e s o u r c e s Commission will conduct two public hearings on proposed changes to the black bass fishing rule, one on Oct. 11 in Spencer, the other on Oct. 17 in Peru. The term “black bass” refers to smallmouth bass, largemouth bass and spotted bass. The DNR has proposed changes that will replace the minimum size limit of 12 inches for black bass taken from rivers or streams with a requirement that black bass taken from rivers and streams must be less than 12 inches long or more than 15 inches long, with not more than two being greater than

15 inches long. The bag limit of five in aggregate per day will remain the same. The DNR believes that this proposed slot limit will afford increased protection, particularly for smallmouth bass populations, and may increase the quality of smallmouth bass fishing opportunities in certain streams. Allowing some harvest of bass less than 12 inches is aimed at preventing “stockpiling” of small bass, and the resulting slow growth that occurs. It would also allow the take of spotted bass, which are plentiful in some streams, compete directly with smallmouth bass, and seldom grow larger

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than 12 inches. The proposed rule language can be found a t : http://www.in.gov/nr c/files/smallmouth_b ass_10154d.pdf. Individuals can provide comments at one of the public hearings. These are set for Oct. 11 at Canyon Inn, Oak Room, McCormick’s Creek State Park, Spencer, at 6 p.m.; and Oct. 17 at the Community Building, Miami County Fairgrounds, at 6 p.m. Submit comments regarding these proposed changes to the NRC at: http://www.in.gov/nr c/2377.htm and click on “Comment on Proposed Rule” next to the “Smallmouth Bass (Black Bass)

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Agriculture Secretary Vilsack announces Smart Grid, transmission system improvements

Ag riculture Secretary Tom Vilsack recently announced that rural electric cooperative utilities will receive funding for smart grid technologies and improvements to generation and transmission facilities. These loans will benefit more than 19,000 rural consumers in 14 states. “Rural electric cooperatives provide direct jobs and sup comfort port economic growth • Wide selection of energy efficient home system. in our rural commu • Ask us about Federal Tax Credits. nities,” Vilsack said. • Schedule your annual HVAC service today “By financing electrisystem improve• We offer Geothermal heating and cooling systems cal ments USDA and the • Ask about Rheem Cash Back on qualifying systems O b a m a s 7 Administration helps ensure sustainable growth and business job creation. Investments in smart grid technologies will give rural electric utilities and their consumers one more tool to better manage use of electricity, increase

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reliability and lower costs.” Among the rural electric cooperative utilities that will receive funding are Hoosier Energy Rural Electric Cooperative, Inc., which serves Indiana and parts of Illinois. Hoosier received a $462.5 million loan to fund system projects to improve reliability and comply with environmental requirements. The loan will also finance smart grid technologies and transmission line improvements. N o r t h e a s t Oklahoma Electric Cooperative, Inc., received a of $23.5 million loan to build or improve nearly 250 miles of distribution line and make other system improvements. The loan includes $1.2 million for automated metering. The $900 million in loans announced today are provided by USDA Rural Development’s Rural Utilities Service (RUS) to help electric

utilities upgrade, expand, maintain and replace rural America’s electric infrastructure. RUS funding will help build nearly 1,500 miles of line and improve more than 1,700 miles of existing line in rural areas. More than $19 million will finance smart grid technologies. USDA Rural Development also funds energy conservation and renewable energy projects. The following is a list of rural utilities that were selected to receive USDA funding, which is contingent upon the recipient meeting the terms of the loan agreement. Hoosier Energy Rural Electric Cooperative, Inc. – $462,526,000, to finance projects for capital additions, upgrades and replacement of existing generation and transmission facilities; to build five miles of new transmission line and improve 71 miles of existing transmission

line. In June, President Obama signed an Executive Order establishing the first White House Rural Council, chaired by Agriculture Secretary Tom Vilsack. The White House Rural Council will work throughout government to create policies to promote economic prosperity and a high quality of life in our rural communities. USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $155 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.

Cash rents to increase in 2012 with production costs, incomes The amount farmers pay to rent farmland will be on the rise again in 2012 as Indiana corn and soybean prices generate higher farm incomes. According to Purdue Extension agricultural economist Craig Dobbins, the 13 percent increase in cash rents in 2011 is the third largest in the 37-year history of the Purdue Farmland Survey, and many of the forces behind the increase are still in place. “The domestic and international demand for U.S. corn and soybeans is expected to remain strong, and the U.S. Department of Agriculture projects average 2011-2012 corn and soybean prices will exceed the 2010-2011 prices,” he said. Because of the high grain prices, Indiana farmers have the potential for record farm income in 2011. Although farmers are

expected to pay more for fertilizer, pesticides, seed and fuel in the coming year to plant and grow their crops, Dobbins said the increase in grain prices has been larger. Interest rates also are likely to remain low. Combine all of those factors and what is likely to happen is strong upward movement in cash rent prices. “On average, it would not be surprising to see cash rents increase as much as they did in 2011,” Dobbins said. “How much cash rents change in specific situations will depend, in part, on what changes have already occurred.” Rainfall variations around the state and the effect on yields also will drive cash rents. If an individual cash rent has increased over the past five years and yields this year are poor, there may only

be a small change in cash rent for 2012. But Dobbins said if the cash rent has been stable because of a long-term lease or other reasons and yields are close to average, the increase could be large. Since 2007 changes in cash rents reported to the Purdue Farmland Survey have been what Dobbins called “unusually variable.” Between 2007 and 2011, statewide cash rent for average land increased anywhere from 0.6 percent to 13 percent. During the previous five-year period of 2002-2006, cash rent increases varied from 0.8 percent to 3.4 percent. “In this volatile environment, it is important for the landlord and tenant to have a detailed discussion about yield, price and cost forecasts to establish the 2012 cash rent,” he said.

2011 Fall Farm Tab

September 28, 2011

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Conversion Program is saving FCS customers $13.6 million annually Farm lender is encouraging customers to take advantage of favorable fixed interest rate environment

Thanks to a program which allows farmers and rural residents to convert their existing loans to lower interest rates, almost 15,000 Farm Credit Services of Mid-America customers have saved significant interest dollars in 2011. Thatâ&#x20AC;&#x2122;s the number of customers who took advantage of FCSâ&#x20AC;&#x2122;s Conversion Program, converting $2.72 billion in loans to lower interest rates, and slicing an average of .50 percent off their interest costs. Estimated customer savings is $13.6 million annually. â&#x20AC;&#x153;More than 50 percent of our conversion activity has occurred in August,â&#x20AC;? said Bill Johnson,

president and chief executive officer stating that interest rates have once again dropped to near alltime lows. â&#x20AC;&#x153;This month alone, staff has converted almost 7,500 customer loans.â&#x20AC;? That represents $1.37 billion in loan volume saving customers an estimated $6.8 million annually. The Loan Conversion Option gives customers the ability to quickly and easily change the interest rates on their Farm Credit loans during the term of those loans. The option consists of an amendment to the loan agreement which authorizes Farm Credit to change the loan term or type of loan product being used for a very small processing fee. Conversion does not require refinancing, with its associated costs and services,

such as new financials, appraisals, and title searches. There is also no need to requalify for the loan. The value-added conversion option gives Farm Credit customers the advantages of the ability to lock in rates for longer or shorter periods of time, too. To assist customers in taking advantage of fixed-rate long-term financing while rates are near record lows, Farm Credit staff are performing an intensive customer analysis, identifying and contacting those who would benefit by using their Loan Conversion Option. â&#x20AC;&#x153;Conversions not only offer the probability of significant savings, but they can provide added security in knowing that a customer can fix an interest rate for the life of the loan,â&#x20AC;? said Johnson. â&#x20AC;&#x153;It is impos-

sible to predict how low rates could go or at what point theyâ&#x20AC;&#x2122;ll move up, but taking advantage of converting to a fixed rate product goes a long way in insuring against future uncertainty.â&#x20AC;? In a related move, earlier this year Farm Credit rolled back interest rates resulting in an additional $43 million annual interest expense savings to customers. â&#x20AC;&#x153;On Feb. 1, 2011, customers saw interest rates on current loans lowered by .35 percent,â&#x20AC;? said Johnson. â&#x20AC;&#x153;This move and the fact that we offer programs like conversions are two more ways Farm Credit continues to offer value to the marketplace, reflecting our commitment to agriculture and our customer-members.â&#x20AC;?

New liability law, DNR program combine to help landowners experiencing deer damage

A new landowner liability law combined with the DNRâ&#x20AC;&#x2122;s Hunters Helping Farmers program can help landowners experiencing deer damage to crops, forest regeneration or landscaping get deer populations under control on their property. The DNR has liberalized hunting regulations in most counties to address deer populations by strategically targeting antlerless deer, but effectiveness depends on landowner participation

because 94 percent of the state is in private ownership. In the Hunters Helping Farmers program, each DNR district wildlife biologist maintains a countyby-county list of hunters who are looking for places to hunt and willing to harvest antlerless deer during the hunting seasons. Landowners having difficulty finding hunters for this purpose may contact the DNR district biologist in their area for a copy. Contact information for district

biologists is at www.wildlife.IN.gov/ 2716.htm. The Indiana General Assembly took steps this year to protect landowners from liability associated with allowing sportsmen and sportswomen to recreate on their land. Indiana Code 34-31-9 was created to limit liability associated with agri(continued on page 6)

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High milk prices keep some struggling dairy farms afloat

In a world of increased feed costs, uncooperative weather and problems with forage quality, high milk prices and strong demand are helping some dairy producers make ends meet. In the last year, about 75 Indiana dairy farms were forced to close their doors because they didn’t make enough money to survive or lost too much, coupled with having to meet increased regulations, said Purdue University dairy specialist Mike Schutz. After a wet spring and extremely dry summer, silage, hay and other forages are expensive but low in essential components, such as energy. That means producers have to supplement the already pricey feed supply with corn, a crop now bringing record-high prices. “In Indiana we’ve already seen per-cow

milk production decline, partially due to feed quality issues,” Schutz said. “Another big factor in the milk production decline was the summer’s extreme heat and humidity; and delayed breeding cycles may affect production for some time.” Some farms also struggled to comply with tighter regulations on somatic cell counts. Somatic cells can lower dairy product yields and reduce shelf life. The new regulations brought Grade B milk – manufacturing grade – cell counts down from 1 million per milliliter to 750,000, the same as for Grade A. The one saving grace has been strong milk prices. But even at prices above $20 per hundredweight, milk producers haven’t been turning much of a profit. Milk prices producers receive have risen substan-

tially since the average $11 per hundredweight price they saw during the worst of 2009. “Milk prices will probably stay in the $19-$20 range for the remainder of 2011, but the average cost of production is $17.50 per hundredweight,” Schutz said. “Margins are small, and they aren’t off-setting the high feed prices or the losses producers experienced back in 2009.” Schutz said the best (continued on page 8)

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Economist: Short corn (continued from page 6) will cause some reduction in the size of the industry” Hurt said he expects domestic consumer meat demand to be weak because of modest income growth. But there is a bright spot for pork producers in the form of strong economies in China and South Korea. “Greater pork exports would stimulate hog prices and enable the industry to pay more for feed,” he said.

Hurt said the limited corn supply and market volatility have caused most pork producers to put expansion plans on the back burner. “Those decisions appear fortuitous now with the small corn crop becoming a reality,” he said. “Estimated farrow-tofinish margins for the 2011-2012 corn marketing year now appear to be negative, with an average loss of $7 per head. This potential loss likely

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Indiana expected to come up short again in corn, soybeans

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Delayed planting of crops in Indiana in the spring because of rain followed by a prolonged dry spell this summer is likely to result in what farmers and economists already expected: Indiana farmers won’t produce as much corn and soybeans as they had hoped for the second consecutive year. A U.S. Department of Agriculture crop production report released Thursday (Aug. 11) projects Indiana farmers to produce 855 million bushels of corn on yields of 150 bushels per acre, down from 898 million bushels on 157 bushels per acre last year. It projects soybean production at 227.4 million bushels on yields of 43 bushels per acre, a decrease from 258.5 million and 48.5 last year. Although no one was expecting bin-buster crops this year - or anything close to it -

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Purdue University agricultural economist Chris Hurt said the projections were even lower than expected. The report, he said, “tells us we didn’t get what we hoped for this year.” Hurt was among panelists who analyzed the much-anticipated report at the Indiana State Fair. The August report is the USDA’s first forecast of yields and production based on conditions as of Aug. 1. Final results, however, can vary depending on weather and other conditions before the fall harvest. Last year at this time, the USDA projected that Indiana farmers would produce 1 billion bushels of corn for the first time. But drought in the summer and fall cut production to 898 million bushels, below 2009’s record 933 million bushels. If the USDA projections hold true, Indiana’s corn crop would be the smallest since 2006, and its soybean production the lowest since 2007.

Nationally, the USDA forecasts corn production at 12.9 billion bushels, up 4 percent from 2010. It would be the third largest production total on record. Soybeans, however, are projected at 3.06 billion bushels, down 8 percent from last year. Hurt said the expected production would not be enough to bring down commodity prices and, ultimately, food prices. With corn and soybean inventories already low, Hurt said, it will take at least another year to rebuild supplies. Hurt said the nation will have a 24day inventory of corn and 22-day supply of soybeans at the end of August. Both should be at levels of 45-60 days. “We just can’t seem to get caught up,” he said. “And I assume we will be saying the same thing again next year.” The crop production report is important because it is an early look at what the industry will need to do to recover the following year to help meet grow-

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ing worldwide demand for food, feed for livestock and fuel in the form of ethanol. “It sets the stage as to what we need to plan for next year,” said panelist Joe Kelsay, director of the state Department of Agriculture. Indiana farmers began the planting season at a slow pace because of almost daily rain in April and much of May. They had planted only 2 percent of the state’s corn crop by May 1, when they normally have 31 percent of it in the ground. That was followed by intense heat and dryness in July, inhibiting development of the crop. By Aug. 1, only 18 percent of the corn crop was rated good to excellent, compared with 63 percent last year. “Each year, some states have a bad year,” said panelist Greg Preston, director of the Indiana office of the USDA’s National Agricultural Statistics Service. “That’s us this year.”

(continued from page 7)

find milk prices that guarantee a reasonable return, they should take advantage of those to protect against loss,” Schutz said. “They also should make the best use of milk quality premiums.” Other ways producers can protect profit

margins are to store feed properly to avoid shrink losses or spoilage, or to look at opportunities to sell culled cows and extra replacement heifers. “Replacement heifers are bringing really good prices right now,” Schutz said.

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2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

Scientists make turfgrass safer for animals, deadly for insects

The right combination of compounds produced by a beneficial fungus could lead to grasses that require fewer pesticides and are safer for wildlife and grazing animals, according to Purdue University scientists. Neotyphodium is a fungus called an endophyte. It lives symbiotically, feeding off many species of grasses while providing the grass with protection from insects such as black cutworm. But Neotyphodium also can be toxic to animals based on the types of alkaloids it produces. It was once a serious concern for pasture managers. Scientists have previously eliminated alkaloid profiles that caused toxicity in

livestock, meaning pasture managers could feed their livestock without making them sick. But in making the grasses safe for animals, their susceptibility to insects came into question. â&#x20AC;&#x153;These endophytes have changed everything for farmers who let their animals graze,â&#x20AC;? said Douglas Richmond, a Purdue assistant professor of turfgrass entomology and applied ecology. â&#x20AC;&#x153;But they created another potential problem.â&#x20AC;? Richmond worked with researchers in New Zealand to assemble a series of Neotyphodium endophytes that are safe for livestock consumption and tested them to see which would also act as nat-

ural insecticides. They found a relatively few strains of the fungus that meet both criteria by producing two key alkaloid toxins - N-acetyl norloline and peramine â&#x20AC;&#x201C; which are a product of the fungal metabolism. The scientists determined they were effective by characterizing insect growth and survival on grasses with different alkaloid profiles. Richmond said that grasses naturally infected with the desired endophyte strains can now be propagated for commercial production. â&#x20AC;&#x153;Both are relatively safe for mammals and other grazing wildlife,â&#x20AC;? Richmond said. â&#x20AC;&#x153;Now the seed industry can put these endophytes into turf and pasture

grasses and not worry about potential nontarget effects.â&#x20AC;? Those endophytes also mean that farmers, golf course turf managers and even homeowners caring for their lawns could use fewer insecticides to manage their grasses. â&#x20AC;&#x153;I think this is going to be very important for sustainability. Itâ&#x20AC;&#x2122;s going to decrease the footprint of cultured turf and pasture grasses,â&#x20AC;? said Richmond, whose results were published in the Journal of Environmental Entomology. â&#x20AC;&#x153;And if you like having wildlife around â&#x20AC;&#x201C; having deer come up to your lawn if you live near the woods â&#x20AC;&#x201C; this is a benefit because itâ&#x20AC;&#x2122;s safe for those animals.â&#x20AC;?

Pretreatment, proper harvest time boost ethanol from switchgrass

Adding a ptetreatment step would allow producers to get more ethanol from switchgrass harvgsted in the fall, according to a Purdue University study. Michael Ladisch, a distinguished professor of agricultural and biological engineering, and Youngmi Kim, a research scientist, compared switchgrass based on growing location, harvest time and whether it was given a pretreatment step. They found that location wasnâ&#x20AC;&#x2122;t important, but the other two factors could significantly increase the amount of ethanol obtained from the feedstock. â&#x20AC;&#x153;Switchgrass harvested in the spring had more cellulose, but also more lignin,â&#x20AC;? said Kim, whose findings were published in the early online version of the journal B i o r e s o u r c e Technology. â&#x20AC;&#x153;You do not get the advantage of the increased cellulose content because itâ&#x20AC;&#x2122;s more difficult to

extract those sugars because of the lignin.â&#x20AC;? Lignin, a rigid substance found in plant cell walls, is one of the most significant problems with cellulosic ethanol production. Besides the harvest time, a pretreatment step - cooking switchgrass in hot water under pressure for about 10 minutes would also help work around lignin. Before pretreatment, Kim said about 10 percent of cellulose was converted to glucose, the yeast-fermentable sugar that produces ethanol. After pretreatment, that number jumped to as much as 90 percent. The pretreatment dissolves hemicellulose, which bonds cellulose and lignin in the plant. Once it is gone, there is more access to the sugars contained in the cellulose. â&#x20AC;&#x153;There is more surface area for the enzymes to digest cellulose,â&#x20AC;? Kim said. Ladisch said advancements in tech-

niques to work around lignin could make spring switchgrass more attractive. But he said that fall switchgrass given a pretreatment and fermentation with special yeast shows potential to give as much as 800-1,000 gallons of ethanol per acre per year, compared with 150-250 gallons per year without pretreatment. Ladisch said corn ethanol from grain produces about 500-600 gallons per acre per year. â&#x20AC;&#x153;This shows that we can improve the processes and increase the amount of ethanol we get from switchgrass,â&#x20AC;? Ladisch said. Ladisch is chief technology officer at Mascoma, a renewable fuels company based in New Hampshire. He received no funding from the company for this research, which was supported by the U.S. Department of Energy. The work is part of a concerted research effort on pretreatments by a consortium

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2011 Fall Farm Tab

www.thepaperofwabash.com

September 28, 2011

Forage Focus: Grazing harvested corn residue, a feed alternative

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feed supply being extended well into fall by utilizing crop residues is huge. Corn crop residue is practical for feeding dry, gestating beef cows in mid-gestation providing they have average or better body condition. Managed correctly, one acre of corn residue can yield up to 60 animal unit grazing days (60 days of grazing for a 1,000 pound animal). Grazing “efficiency” will determine exactly how much feed is realized from

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corn residue. Moveable electric fencing can increase utilization up to 50 percent by allowing cattlemen to control the amount of area grazed thus, preventing the cattle from “selective” grazing or “trampling” many of the leaves or husks. “Strip” grazing the cows will also reduce the potential for acidosis in situations were there may have been excessive field losses of grain. Simply “dumping” the cows onto the entire cornfield will be least efficient but will allow more residue to remain on the field over the winter for cover. Cattle will select and eat the grain first, then the husk and leaves, and finally the cobs and stalks. Fields containing corn residues should be grazed soon after harvest for optimum quality, and fields with poor drainage or compaction problems should not be grazed for extended periods of time. Producers with a Conservation Plan should check with NRCS to be certain that the grazing of corn stalks does not violate the Plan. If corn stalk fields are not presently fenced, temporary electric fencing is an economical alternative. Harvested corn fields can be encircled with a single strand of poly or high tensile wire supported with fiberglass posts for less than $10 per acre. Even if a fence charger must be purchased to allow the grazing of corn residue, up to 45 days per acre of feed may be provided a typical Ohio brood cow at a cost of under 25 cents/head per day. And, of course, the materials purchased to provide this temporary boundary may be reused from year to year, thus, making the “annual” cost of ownership even less. While corn residue offers a considerable amount of digestible energy and fiber, it’s always good to review the palatability and practicality of utilizing crop residues which result from either corn or soybean harvest as a sig-

nificant feed source, especially if they must be mechanically harvested and transported for feeding. Of the two, certainly soybean stubble bales must be viewed as a last resort unless you have a bale processor and feed it in limited quantities to “dilute” other high quality feeds in the ration. In fact, if your vision for utilizing soybean residue is simply placing bales of the “feed” in bale feeders, it’s probably not worth the time, fuel, wear on the machinery, and effort it takes to gather it. While it can have 3540 percent TDN and nearly 4 percent protein, this is less than even wheat straw. Simply put, as soybeans increase in maturity they increase in lignin and lignin is not digested well in the rumen. Soybean stubble might make marginal bedding, but twigs gathered from trees in your yard might make comparable feed. While corn residue has much more merit than soybean residue as a feed source and may be viewed as comparable to average grass hay, palatability of the stalks can be a problem. The husks and kernels of corn that fall during the process of harvest are the most palatable, and will be readily consumed. This lends itself very nicely to grazing being by far the best method of harvesting corn residue, whereas, baling residue will likely cause loss of the kernels. When it comes to baling and transporting corn residue - and especially if you’re thinking about traveling very far with it consumption versus waste becomes a consideration worth pondering. The husk, leaf, and any kernels in the bales, which will likely be a small percentage of each bale, will be readily consumed if fed in a bale ring. If you have a bale processor, much of the stalk may be consumed also. However, if you’re simply placing corn residue bales in bale rings, the abundance

of corn stalks which will remain after the more desirable parts of the bale are consumed will likely become bedding. If you must feed baled corn residue in this fashion, consider simply pushing the chopper or spreader on the back of the combine forward and dropping the residue that comes through the thresher in a “windrow” and then bale only these windrows. The resulting bales will be a much higher percentage of the palatable portions of the corn residue. As you consider baling and transporting baled corn residue to your cows, carefully consider the harvest and transportation costs involved on a “per consumable and digestible ton of dry matter” basis. Don’t forget about storage and feeding losses. In addition, according to past OSU Extension fertility specialist Robert Mullen, when you remove a ton of corn crop residue from a field you’re taking with it 6 pounds of P2O5 and 25 pounds of K2O which must be replaced or redistributed to the field. Corn stover also contains organic matter that when returned to the soil does have value, but it is difficult to put a dollar value on it. Continued removal a significant portion of corn crop residue may have negative repercussions in the long-run in the form of decreased soil organic matter, especially if some organic matter, perhaps in the form of manure, is not returned to the soil. Grazing corn crop residue may prove valuable and soil friendly. However, carefully consider the pros and cons of mechanically harvesting and moving residue to the cow herd. In the mean time, see the OSU Extension Fact Sheet “Grazing Corn Residue” found at: http://ohioline.osu.ed u/anr-fact/0010.html for more details.

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

Doud Orchard changes hands By Craig Brosman CBrosman@ thepaperofwabash.com

Wake up, pick apples, crush them, sleep and restart, was the life of Steve Doud until May. In May, Doud sold his apple orchard that had been in his family since 1894. Last year his wife Connie retired and this year Doud decided it was time to retire as well. Lucky for him he knew someone who was willing to take over the legacy and keep the orchard alive. Kelly and Rebecca Shanley decided to pick up where Doud left off. On May 1 the Shanley’s took over the orchard and jumped right into the growing season. “May is when the apple trees blooms,” Kelly said. “It certainly has been a quick learning curve. Catching up on the ins and outs of the business has been interesting.” “We are extremely lucky to have the staff that we do,” Becky said. “When we don’t know certain things we ask them and they help us learn everything that we need to.” Kelly has helped Doud for many years at the orchard. Every once in a while Doud comes by to see how things are going and to drop off mail that comes to his house. September and October is the height of the busy season for the Shanley’s. They take care of 55 acres of apples, pears and peaches. The farm has more than 9,000 trees that need to be taken care of, pruned and picked. “During this time of year we make 200 gallons of apple cider an hour,” Kelly said. “It takes one bushel of apples to make three gallons of cider.”

KOKOMO GRAIN BECKY AND KELLY SHANLEY bought Doud Orchards in Denver in May. Steve Doud decided to retire and the Shanleys wanted to get involved in something they could grow. (photo by Craig Brosman) Of the 9,000 trees there are 150 varieties of apples that are picked. Each tree is hand picked starting in July and ending in October. When making cider they separate the varieties of apples into sections so that when they make cider to ensure that the flavor of the fresh cider is what they want it to be. The orchard has six pickers that pick thousands of apples each year. “We have really good pickers,” Kelly said. “They can pick them faster than we can grade them.” Around noon Friday Sept, 16 the pickers came in for lunch, but not empty handed. There were six large crates full of apples on the trailer that came out of the orchard. “Each crate is 55 bushels,” Kelly said. “They even left two more crates out in the

orchard.” The six pickers that they have at the orchard are not the only help they have. The Shanley’s have three children, one of which is an engineering student at Purdue University. “I think she likes being here at the orchard more than she does at school,” Kelly said. During the winter months heading up to the May bloom they tend to the trees. With 9,000 trees it takes quite a bit of time to tend to their needs. “We start pruning the trees in January,” Kelly said. “If we don’t prune the trees then the fruit will be smaller and less colorful. By pruning it allows the fruit to get more light and air through the tree.” Owning an orchard isn’t easy work, but the Shanley’s get it done. Kelly works full time as a tool and die maker at Ford Meter

Box Company in Wabash in addition to working at the orchard. Becky likes to refer to the orchard as a living heirloom that they had an opportunity to take over. “It is a tradition that we can continue and give to our kids someday,” Becky said. “We like to grow

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things and be outside.” Kelly chimed in, “We like to be exhausted too.” “Really it is just a family legacy,” Becky said. “Something that we can pass on.” “Really it is just a family legacy,” Becky said. “Something that we can pass on.”

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2011 Fall Farm Tab

www.thepaperofwabash.com

September 28, 2011

Maximize value of 2011 calf crop NDSU’s beef cattle specialist offers strategies for getting the most value out of a calf crop.

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Producers soon will be weaning calves and finalizing marketing decisions. “For producers to capture the most value from their calf crop, they need to follow a carefully planned marketing strategy,” says Carl Dahlen, North Dakota State University Extension Service beef cattle specialist. Here are four strategies to maximize calf crop value this year: Start with a uniform group of calves Implement a sound herd health program Consider age and source verification Talk with your auction market representatives The sale price almost always is greater for a large group of high-quality, uniform calves than similar-quality calves brought to the livestock auction in smaller groups or similar calves with more weight range variation. High-quality genetics and groups that are uniform in color, frame, muscling, flesh and weight range are essential to add value to a group of cattle.

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sales. “However, 2011 is a different story,” Dahlen says. “This year may prove to be the most beneficial year to date for producers who age and source verify their calves. As long as Japan restricts imports to less than 21 months of age, the demand for age- and source-verified calves will remain strong. But the process for verifying calves does not happen overnight.” Producers should be proactive, initiating and following through with the age and source verification process. They need to have records in place and start the paperwork well in advance of the sale to properly verify the age and source of calves. Dahlen recommends producers talk to a third-party certification agency to learn if their calves and records qualify for age and source verification. Similar organizations can help producers certify that their calves are suitable for natural and organic markets. For a list of third-party certification agencies, visit http://www.ams.usd a.gov/AMSv1.0/getfile?dDocName=STE LPRD3320450. “I encourage producers to spend time evaluating production costs and returns to ensure that they are obtaining a sufficient premium when marketing under a natural or organic label, compared with managing and marketing calves in traditional markets,” Dahlen says. Auction market representatives can be great resources for producers with questions about improving the value of their calf crop. The market

representatives deal with questions about feed yard preference for calves, status of calf supply and demand, whether feedlots are running at capacity and the latest market trends daily, whereas many cow-calf producers evaluate these questions once a year. In addition, auction markets may offer their customers alternative marketing avenues, such as special sales, Internet sales and video auctions. Producers should remain in contact with auction market staff and be flexible in their marketing strategy, according to Dahlen. Consign cattle well in advance of the sale and let the auction market know as much about the calves as possible (for example, what color they are, when they were born, when they were vaccinated and whether they are age and source verified). The more information the auction market has, the better job it can do of marketing those calves. In addition, producers should ask auction market representatives about other ways to improve their cow herd and calf marketability. “No silver bullet will make you consistently top the sale each time you sell calves,” Dahlen says. “Concentrate on creating a uniform set of calves with cows that work in your environment. Manage your herd with good BQA practices, vaccinate in a timely fashion, age and source verify if the market is rewarding the effort, and remain flexible with marketing strategy and dates.”

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To improve calf uniformity, concentrate on purchasing highquality breeding stock, managing breeding seasons to create a tight calving window (consider a 45-day breeding season) and possibly culling late-calving cows. “Implementing a sound herd health program is the easiest way to add value to the calf crop, but it has to be done correctly,” Dahlen advises. “Calves must receive the correct vaccines at the correct time.” Vaccines calves receive as they walk onto the truck do not have a large impact on the price buyers are willing to pay because most cattle will be revaccinated upon arrival at a feedlot. However, producers who vaccinated calves two to three weeks prior to weaning and followed all Beef Quality Assurance (BQA) procedures are more likely to be rewarded with higher prices. The type of vaccine cattle receive also can impact the price. Cattle feeders are looking for calves that have received a modified live vaccine. Many feeders are not happy with the protection from a killed vaccine. Recent sales have shown price swings of $5 to $8 per hundredweight for the same quality of calves, depending on vaccination status, with higher prices paid for vaccinated calves. Consult with your veterinarian about the vaccination strategy appropriate for your herd. Even one year ago, auction market staff had not received a lot of requests for ageand source-verified calves or special ageand source-verified

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The Indiana State Fair concluded with a preliminary figure of 872,312 visitors going through the gates (down 8 percent from the 952,020 that attended in 2010). Sunday’s crowd of 52,335 saw Tippecanoe County’s Erika Burghardt crowned queen for the 2012 fair and the “Year of Dairy Cows” theme revealed.

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

Farm Futures sees acreage increases for corn, soybeans and wheat High prices should lure more land into production of major crops, Farm Futures survey shows.

A tough growing season in 2011 won’t dim the hopes of U.S. farmers, who plan to increase production of major crops in the coming year, according to Farm Futures magazine’s first survey of 2012 planting intentions. Lured by high prices and good profit potential, producers said they expect to plant record corn acres, along with strong increases for soybeans and wheat. Farm Futures estimates corn acreage could hit 93.87 million in 2012, up 1.7 percent from this year’s total. If achieved, that would top the postWorld War II record of 93.6 million set in 2007. And with corn prices still rising, the total could top 94 million or more, said Farm Futures Senior Editor Bryce Knorr, who conducted the online survey. Results were released at the opening day of the

2011 Farm Progress Show, the nation’s largest outdoor farm show, held near Decatur, Ill., Aug. 30, 31 and Sept. 1. “Rising prices and profits convinced farmers to increase corn plantings in 2011, and the same should hold true in 2012,” Knorr said. “Farmers are truly planting for the market these days. However, that means these intentions could change by spring if the current bull market runs out of steam.” Farm Futures pegged 2012 soybean acreage at 76.9 million, a 2.3 percent increase. Farmers are gearing up to seed 42.4 million winter wheat acres this fall, up 3.1 percent, with total wheat plantings of 58.63 million up 3.9 percent. Knorr noted that weather will play a big role in determining final wheat acreage. A late fall harvest in 2009 reduced seedings of soft red winter wheat dramatically, while 2011 spring wheat and durum acreage suf-

fered from historic flooding on the northern Plains. This year’s concerns include severe drought on the southern Plains, notes Farm Futures Market Analyst Arlan Suderman, who says tight supplies mean every acre will count. “Farmers are telling us that we are beginning to stretch the available acres that they are willing to commit to corn production without a more significant price incentive,” Suderman says. “That means that substantial gains in production are going to have to come either from yield or from overseas production, leaving us even more susceptible to weather risks. “The data suggests that it’s going to take a couple of years with good crops to rebuild domestic and global stocks, unless 2012 brings an unusually favorable summer to maximize yields and/or we see a significant slowdown in the Asian economy. “The soybean and wheat numbers suggest that the market continues to provide

Sen. Banks: A new splash for natural resources management to protect valuable ground water It’s something we all need, use and may take for granted every day: fresh water. But, at what point should our free-flowing use of this seemingly abundant natural resource come under better monitoring by state government to improve water quality and prevent future shortages? State Sen. Jim Banks (R-Columbia City), chair of the Water Resources Study Committee and fellow Hoosier legislators learned today from expert hydrologists urging the Indiana General Assembly to consider developing policies to protect and manage Indiana’s valuable water resources. “We are analyzing Indiana’s supply and

economic demand for this vital natural resource,” Banks said. “Our economy heavily relies on industrial facilities and agriculture – both of which require vast amounts of useable fresh water.” Jack Whitman, a hydrologist and national director of Layne Geosciences, said Indiana contains nearly 100 million acre-feet of stored ground water – a valuable asset worth nearly $300 billion. “Many states have developed statutes to manage its water resources,” Whitman said. “Indiana will eventually come to a point where it no longer has an unlimited supply of water. We have to prepare ourselves now for future

demand – and this means stricter regulation.” Whitman said better policy will help advance water efficiency, reduce pollution and prevent future shortages. Legislators will continue examining Indiana’s water supply and seek further expert opinions regarding the state’s current water resources, Banks said. “Indiana is the wild west of water issues,” Banks said. “We are one of the very few states without guiding principles to monitor water supplies.” Banks asked Whitman and his colleagues lay out specific recommendations on water policies for lawmakers to intro-

an incentive for farmers in the southern belt to double-crop the two crops whenever the weather allows them to maximize their returns. This leaves both susceptible to weather when conditions are not conducive for getting one crop harvested and the other planted.” Farm Futures surveyed almost 1,000 growers in late July and August to gather data on yields, acreage and management practices. Survey results by crop were as follows: - Corn, 93.87 million acres, 1.7 percent change - Soybeans, 76.9 million acres, 2.3 percent change - Soft Red Winter Wheat, 8.4 million acres, 1.7 percent change - Hard Red Winter Wheat, 30.3 million acres, 4 percent change - White Winter Wheat, 3.7 million acres, -0.6 percent change - All Winter Wheat, 42.4 million acres, 3.1 percent

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Purdue study: Indiana farm accidents claim 23 lives Twenty-three people died in farm accidents in Indiana in 2010, the fourth consecutive year farmrelated deaths totaled at least 20, according to a Purdue University study released Sept. 20. The Indiana Farm Fatality Summary found that the leading causes of farm deaths were overturned tractors and workers being run over by farm machinery, said Bill Field, Purdue Extension farm safety specialist. Purdue issued the annual study at the Indiana Farm Bureau Building in Indianapolis to coincide with National Farm Safety and Health Week. The 23 farm deaths were three more than

reported in 2009 but five fewer than in 2008. Just eight farm deaths were reported in 2006, the fewest number since Purdue began collecting the data about 30 years ago. “We’re doing better so far this year. Our number of fatalities could be below 15,” Field said. Farming ranks among the nation’s most dangerous occupations. The National Safety Council reports that the occupational death rate among farmers is 31.6 fatalities per 100,000 workers, compared with 3.5 deaths per the same number of workers in non-farm industries. Farm deaths could be significantly reduced, Field said.

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Most farm accidents can be avoided if farmers use proper safety equipment and keep children away from dangerous work environments. “Every one of the five incidents involving tractor overturns in Indiana this past year could have been prevented through the use of rollover protective structures,” Field said. “And there is no reason to continue having young children die as a result of involvement with skid steer loaders, onfarm sawmills and

grain handling equipment, as reported in 2010.” Rollover protective structures, known as ROPs, are metal frames that attach to the top of a tractor’s driver compartment. Although ROPs have been standard equipment in tractors since the 1985 model year, farmers sometimes remove the frames to fit a tractor through shorter storage building doors. In addition to the fatalities, slightly more than 6,700 nonfatal farm injuries were reported in

Indiana in 2010, Field said. “Some of these left no visible scars, but some changed the victim’s life forever due to amputations, head injuries and spinal cord injuries,” he said. Field hopes the agriculture industry has not reached a point where fatalities are considered a normal part of the job. “One death is one death too many,” he said. “I hope we don’t forget the real costs of producing affordable and safe food.”

Purdue to establish new Honors College Purdue’s top students will have more academic options and resources thanks to the new Honors College approved July 12 by the university’s Board of Trustees. “Our Honors College will further our goals toward student success and provide a challenging and rewarding experience for Purdue’s top students,” said Purdue President France A. Córdova. “Its focus on academic excellence and leadership is designed to attract high-achieving students who will thrive in a dynamic learning environment.” The new college, expected to admit first-year students in fall 2013, will build on the success of the University Honors Program, which began in 2004. It started with 75 students and increased to 450 students this past year. In addition to this university-wide program, there are currently more than 1,250 students housed in five college-specific honors programs. An external review committee in 2009 recommended establishing an Honors College. In fall 2010, a task force under the direction of associate provost Dennis Savaiano was formed, and the group consulted with the University Senate, deans, the Teaching Academy, Purdue Student Government and each college. The Honors College will replace the University Honors Program and the existing college honors programs. It will provide central recruiting, advising, residential learning

opportunities and cross-disciplinary opportunities to all honors students. “Improving the honors program is a component of the New Synergies strategic plan, and this new college will attract and meet the needs of students who want to complement their academic degree with an honors degree,” said Dale Whittaker, vice provost for undergraduate academic affairs. “Courses will be taught in ways that address the specific learning characteristics of honors students, and we will focus on the grand challenges of society and Purdue’s strengths in science and society. “Purdue has the opportunity to provide a science- and society-oriented honors program in a re s e a rch - i n t e n s ive environment that Indiana high school graduates will not find elsewhere in the state.” Through its research, the task force determined that a central university honors college would be essential to enhance student excellence and success. “Members of the task force are grateful to the faculty, staff and students who provided feedback that was critical to this proposal,” Savaiano said. “In addition to utilizing campus resources, the task force also benchmarked our peers, conducted a literature review of the research related to learning, and consulted with national experts who focus on retention and student

success in higher education. The task force’s report was vetted with the campus community this spring, and there was a tremendous amount of support.” Requirements for an honors degree will likely include a common first-year seminar, honors courses and a capstone experience. The enrollment goal for the new college is 2,000 students. Admission requirements will be determined in the upcoming academic year, and the development process will include strong faculty i nvo l ve m e n t , Whittaker said. Students who earn the honors degree will receive a transcript entry, an honors medallion to be worn at commencement and a separate diploma. An interim dean will be appointed to lead the program’s development, and staff will be housed in residence halls space. “All Purdue faculty will be invited to participate in the development of the Honors College, and a smaller working group will be essential to establish curricular, faculty appointment and admission requirements,” Whittaker said. “The Honors College also will offer an environment where Purdue faculty can explore new teaching methods and learning practices and share those results with the university community.” Program implementation and associated costs for the new college will be covered by internal reallocations and gifts.

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

Dysons purchase old Hoosier Stockyard hog buying station really make money on the 4-H cattle we break even.” The building that the Dysons bought conveniently has a scale already installed. “It was a building that we really didn’t have to do a lot with to make it work for what we wanted to use it for,” Dyson said. “We can weigh about 20 steers on the scales at a time. The only major thing we will have to do is pour a

concrete wall around the outside of the building so that we can block the winds in the winter and put a

curtain up to keep them warm. “

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THE OLD HOOSIER STOCKYARD BUILDING at the corner of Ind. S.R. 15 and Ind. S.R. 16 is currently being used as a cattle barn. Mike and Mark Dyson purchased the property and raise feeder cattle at the site. Mark thought about building his own building but the old hog barn was set up very well for their operation. (Photo by Craig Brosman)

by Craig Brosman CBrosman @thepaperofwabash.com

The old Hoosier Stockyard hog buying station did not stay empty for long. Last December the hog barn at the corner of SR 15 and SR 16 closed and a local farming family had their eyes set on the building. Mike and Mark Dyson looked at the building for a small cattle-raising operation. “We knew they were closing so we talked to them,” Mark said. “We talked about renting and they said they were either going to rent it or sell it. We thought about it and we were going to build a building at my house, but it ended up being cheaper to just buy this building.” The premise behind the use of the building has not changed much. For more than 37 years, the building was a hog barn that would sell more than 1,000 hogs per day in its prime during the

1970s. Now it is a barn full of feeder cattle. The Dysons looked into buying more farmland, but with the high price of land they looked for something else to get involved in. “I farm about 800 crop acres,” Mark said. “I thought about getting more land but its very expensive and the cash rent prices are high as well. There are not a lot of people who want these baby calves; it’s a specialty.” They sell about 20 steers a week and have a maximum capacity of 300 animals. Someone might think finding animals is difficult, but Mark has yet to have an issue. “We get all of our bulls from Degroot’s Dairy in Andrews and New Schoonebeek Dairy in LaFontaine,” Mark said. Buyers have come as far as Idaho to pick

out steers for their feed lots, but Dyson said that most of the buyers take their cattle to Michigan or Iowa. “When they become about 300 pounds they are ready to be sold and buyers will come by and look at which ones they would like to purchase,” Dyson said. “Holstein cows usually will grow until they get to between 1,300 and 1,500 pounds. The cattle they buy here will sit on the feedlot for about a year until they are ready to be sold again.” From the day Dyson picks up the calf and starts feeding it milk at his farm, to the day he sells the steer to a rancher, it take roughly four months. With the commodity prices on the rise, raising feeder cattle can become difficult. “We feed them dry feed, hay, corn and distillers grain for protein,” Dyson said.

MARK DYSON STANDS BESIDE a pen full of young feeder cattle that he is raising at the facility. Dyson and his brother Mike raise approximately 300 feeder cattle at the old hog selling station. (photo by Craig Brosman)

“The price of feeder cattle and fat cattle fluctuates every day, but the supply is on our side, since the amount of cattle being raised has gone down in recent years. Right now it is just a gamble with the feed prices as high as they are.” Dyson spends roughly seven hours a day feeding, bedding and vaccinating his cattle, in addition to whatever else needs to be done on the farm. “The upside is that you will never be unemployed,” Dyson said. “It is pretty enjoyable when the cattle are doing well, but when they are sick and having rough times it is not fun.” Ranchers are not the only clients that the Dysons have. Last year they sold 50 to 60 calves to 4-h kids for projects. “It’s something we can do to help the kids that’s why we do it,” Dyson said. “We don’t

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2011 Fall Farm Tab

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2011 Fall Farm Tab

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2011 Fall Farm Tab

www.thepaperofwabash.com

September 28, 2011

Local man switches jobs and starts family business By Craig Brosman CBrosman @thepaperofwabash.com

Compared to what Mark York used to do, tending to 12,000 pigs twice a day is a change of pace. Prior to getting into the farm business York was a hog buyer for Iowa Beef Processors. After six years of buying hogs for someone else he decided it was about time to do something for his self. “I kind of got sick of buying for other people,” York said. “I wanted to do something with my hands and create something that I could be a part of and I did.” Thirteen years ago York made the change from being a buyer to owning his own hog farm. When he started he bought he had one barn and 4,000 head of hogs. He has grown and now owns three facilities and tends to more than 12,000 hogs. Within each barn there are four separate sections in which the hogs are housed. Each section has 32 pens that hold up to 34 pigs each. One would

MARK YORK works with the grain dispenser in one section of his hog facility off of SR 16. Within this building there are approximately 4,200 hogs that he raises for TDM Farms. Overall, York takes care of more than 12,000 hogs. (photo by Craig Brosman)

INSIDE ONE SECTION of the four sections at Mark York’s hog farm there are 1,051 hogs that he takes care of. On this day, 170 were taken out of this section to be slaughtered. (photo by Craig Brosman)

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think that with so many pigs in the same vicinity the air would be pungent and nearly impossible to breath, but it is actually the opposite. York’s wife Chris works at the farm as well and she hasn’t had any issues with the smell. “The smell isn’t that bad out here,” Chris said. “I was working out in one of the pens one day and they came by to spray chicken manure on the fields and it smelled so bad that I could smell it inside the building. It doesn’t smell as much as chicken or cow manure.” The manure is housed under the panels of the floor where the hogs feed and sleep. When the pit fills up Mark injects the field next to him with the manure. “We do not put it on top of the field because that would smell a lot more than if we put it under ground,” York said. “About 90 percent of the smell is taken away when it is injected under the soil.” All of the hogs that York takes care of are not actually his pigs. He has a contract with TDM Farms Inc., of Newton Grove, NC. Each year TDM farms fills the farm twice with hogs. “TDM is the 60th largest pig company with about 23,000 sows,” he said “They bring the pigs here to our facilities when the pigs are 17 days old. They drive from North Carolina to bring them here.” When the hogs arrive at York’s farm they are put into pens and kept there for five-and-a-half months until they are large enough to be taken to the slaughterhouse. If hogs in one pen were to be mixed with hogs from another pen it would cause major problems for York. “Within their pens they have a pecking order,” he said. “If we were to exchange pigs from one pen with some from another they would attack each other because of the social nature of pigs. It is just like being in school, the athletes are the most popular and the scrawny nerds get picked on. When the new kid comes to school he’s the odd one out.” When the pig reach-

es 280 pounds they are ready to be taken to the slaughterhouse. Pruning each section of the hogs which are large enough to be slaughtered is a constant process that York has to keep track of. “This time we are taking out 170, to clear out the pens and give the other pigs more room to feed. When we do this the other pigs grow faster after the large pigs are out of the pens,” he said. “The next time we go into that room we are going to take 600 pigs out. When we do that we usually have five trucks worth of pigs we take out, then we start over again.” Twelve thousand hogs is a fair amount of hogs to raise in this market he said. While he owns the facilities the hogs stay in, he does not own the feed or the hogs, TDM supplies both. Where he makes his money is through the raising of the hogs. With grain being the main source of food for the hogs it is extremely difficult on farmers to raise a large number of hogs. In the last few years grain prices have shot up more than three dollars a bushel. For the feed he uses soybean and corn meal mix, and dried distiller’s grain, as well as other nutritious vitamins and proteins that help grow the hog. “Fifteen percent of the hog farmers are going under because of the grain prices. It’s not good,” he said. “ But for me the numbers are what justify what I do. There is enough to be made with the number of animals we have that it is worth it.” York began hog farming before his children were born, but has a plan for what they will do when they are tall enough to see over the metal separator. “They are 11 but when they are tall enough they will be in here helping me sort and take care of the pigs,” he said. “This is what puts a roof over their head and food in their mouth, this is the family business.” Farming is in his blood, his family farmed and he got into the agriculture business too. It could be considered a continuation of a family tradition.

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

Harvesting, handling and storing frost-damaged soybeans

by Mike Staton, Michigan State University Extension Frost-damaged soybeans are generally considered salvageable as long as the plants reached the R6 growth stage at the time the killing frost occurred. The R6 growth stage occurs when the beans completely fill one pod at one of the upper four nodes on the main stem on 50 percent of the plants in the field. In dense, green soybeans, frost or freeze damage kills the upper leaves, but rarely penetrates deeply into the canopy when temperatures remain above 30°F. However, once the upper leaves have

been damaged, subsequent freeze events will penetrate deeper into the canopy. Once the plants reach the R7 growth stage, yield reductions due to frost or freeze injury will be minor. The R7 growth stage occurs when one pod on the main stem has attained its mature color on 50 percent of the plants in the field. Combine adjustment Frost-damaged beans will probably be wetter than normal and more difficult to thresh. Your first step in adjusting for this condition is to reduce the concave clearance. If acceptable threshing still does not occur, increase the speed of the cylin-

Harvesting ginseng and goldenseal from DNR properties is prohibited Harvesting ginseng, goldenseal (aka yellowroot), and other plants is illegal on all DNR properties. Although ginseng is currently in season, it can be harvested only on private property, with the permission of the landowner. Public Law 107 (IC 14-4-8) and the Ginseng Rule (312 IAC 19) prohibit all digging on state property. The purpose of these regulations is to ensure a healthy ginseng population for the future. Details of the ginseng regulations are at www.in.gov/dnr/naturepreserve/files/ginseng99.pdf. The only items that may be removed legally from DNR properties are nuts, fruits, berries and mushrooms.

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der. Make incremental adjustments and check your progress after each adjustment. Harvest at higher moisture contents Soybeans that experienced severe frost or freeze damage extending well into the crop canopy will dry down slowly. In this case, producers should avoid significant harvest delays by harvesting frost-damaged fields at moisture levels between 16 and 18 percent. Data from the University of Wisconsin showed that shatter losses of 0.2 bushels per acre per day occur after the beans reach 16 to 18 percent moisture. The beans will need

to be dried to a safe moisture level for storage (12 percent for six months). Electronic moisture meters tend to underestimate the moisture levels in green and immature soybeans, so remember to add 1.5 percentage points to the moisture meter readings when testing mixtures of green, immature and mature beans and adjust drying times accordingly. In fields where only the upper leaves were damaged by frost, producers should wait and allow the beans to mature and dry to 14 to 15 percent in the field if possible. Drying frost-damaged soybeans with ambient air

If only two to three points of moisture need to be removed, the air temperature is above 60°F and below 75 percent relative humidity, no supplemental heat is required in drying bins equipped with full perforated floors and fans capable of producing one to two cfm/bu. However, drying will occur slowly. Drying times depend on initial moisture content, airflow, grain depth and weather conditions. Aeration fans should be ran continuously as long as the beans are above 15 percent moisture and the average humidity of the air is below 70 to 75 percent. Drying frost-damaged

soybeans with supplemental heat If you plan to add supplemental heat, be careful as soybeans are more fragile than corn and can be damaged by drying temperatures above 130°F. These temperatures will cause excessive seed coat cracking and split beans. The relative humidity of the drying air should always be maintained above 40 percent to protect the integrity of the seed coats and prevent splits. Growers can control the heat and humidity of the drying air by using short burner cycles or by changing the burner jets. Store frost-damaged beans

Green and immature soybeans are included in the total damage factor in the United States soybean grading standard. Elevators will discount loads containing green and immature soybeans and, in some cases, may reject entire loads if the damage levels are high. Discounts can be reduced by screening out the small beans, drying the rest to 12 percent moisture and storing them in aerated bins for at least six weeks. The green color may fade and marketing concerns should be reduced after this amount of time.

Green stem syndrome among harvest, late-season concerns As Indiana soybeans near maturity, a Purdue Extension agronomist says farmers should watch for green stem syndrome, a condition that can trick them into delaying harvest, possibly lowering yields. When a soybean plant is progressing normally at the beginning of the season, it produces high levels of carbohydrates to feed itself, but when exposed to drought or other stress, pods may fall off, Shaun Casteel said. After the pods fall off, the plant has a pool of reserved carbohydrates and will stay green longer – known as green stem syndrome. While the condition does not harm the seed, oftentimes when farmers look into the field and see green stems, they will delay harvest beyond the optimal harvest moisture of 13 percent to 15 percent. “I’ve seen farmers not harvest until the stems are brown, but the beans are at 9 to 10 percent moisture,” Casteel said. “With the lower moisture content, you lose yield in the form of water.” If growers want to harvest earlier, they should combine at a slower pace because the stems will be

tougher and could damage equipment, he said. Green stem syndrome is one problem that could further decrease yields following a planting season hampered by heavy rains and a growing season hindered by heat and drought. The U.S. Department of Agriculture projected in its September crop report that soybean yields nationally could average 41.8 bushels per acre, down 1.5 to 2 bushels from trend. Indiana yields were projected at 42 bushels per acre, down 6 bushels from what they might have been with a normal growing season. One of the main reasons behind expected low yields has been loss of pods. With heat stress, some plants have dropped high numbers of pods; others have underdeveloped seeds within the pod. If there is rain during early seed fill stages, they might recover. If the plants are already dropping leaves, however, it is unlikely they will benefit. “We still have the story of two crops in Indiana; one was planted on time and still has good yield potential, while the other started out late and has been further

compromised by dry weather,” Casteel said. “At this point, rain might be too late for much of the Indiana crop.” Insects could be a challenge for soybean growers as bean leaf beetles and stinkbugs can attack the more mature crop and move onto nearby younger beans. Farmers can scout fields to identify pests and better predict yield potential, he said. “This is a hard year,” Casteel said. “I know farmers are really hoping for a

good harvest with $14 a bushel beans, but this year’s yields

probably won’t meet that expectation.”

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2011 Fall Farm Tab

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Imprelis herbicide banned from sale, use in Indiana

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age to trees and ornamental plants. The office this week is notifying lawn care companies and other professional users of the herbicide made by DuPont that the product’s registration in Indiana has been canceled, said Dave Scott, pesticide administrator with the state chemist’s office, based at Purdue University. “The only thing they are permitted to do with it is return it to DuPont for disposal,” Scott said. “We have been advised by DuPont that they will be reimbursed for it whether it is in a closed container or an open container. There is no reason to hold onto it.” Indiana’s action follows a U.S. Environmental Protection Agency order in August requiring DuPont to stop selling and distributing it. The step Indiana took was necessary to prohibit others from selling and using it in the state, Scott said.

“Imprelis is already out there, so this is a way to plug any holes because the EPA order technically applied only to DuPont,” Scott said. “Now, Imprelis cannot be sold, distributed or used by anyone in Indiana.” The office had notified DuPont in August that it intended to cancel the registration, and the company was given until Sept. 15 to appeal. Instead, the company voluntarily asked the state chemist to cancel it, Scott said. DuPont and the EPA are working out procedures for recall of the chemical, Scott said. Imprelis, with the active ingredient aminocyclopyrachlor, was approved by the EPA and registered in Indiana late last year for use by lawn care companies and other professionals. It was not available through retail sale. The herbicide was intended to control a variety of broadleaf

weeds such as ground ivy (creeping Charlie) and wild violet on lawns, golf courses, parks, cemeteries, athletic fields and sod farms. Extension services in more than 20 states from Kansas to Pennsylvania reported cases of damage to trees and ornamentals possibly associated with Imprelis. Imprelis became the target of complaints in Indiana in the spring from lawn care providers and their customers who suspected it was damaging trees – mainly evergreens –and ornamental plants near where it was applied. The state chemist in July urged lawn care providers not to use it until experts determined whether it was causing the damage. Since then, investigations have determined that Imprelis was the cause, Scott said. The state chemist’s office has investigated nearly 400 complaints about Imprelis

since June, the most complaints about any herbicide Scott has seen in his 30 years at the state chemist’s office. He said the office is finalizing the investigations and that property owners and applicators will receive a copy of the investigation report for their property. DuPont earlier this month sent notices to users of Imprelis specifying how it would handle damage claims, Scott said. Those wanting to submit a claim must do so by Nov. 30. “For anybody who calls in now with a complaint about Imprelis, we’re encouraging them to contact DuPont to make sure they get their claims processed by the cutoff date,” Scott said. More information about Imprelis, including how to submit a claim to DuPont, is available on the state chemist’s website at http://www.isco.purdue.edu.

NRC approves rule changes for 2012 deer season The Indiana Natural Resources Commission (NRC) recently approved a package of changes to deer hunting rules that will go into effect in the 2012 season. None of

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the changes will be in effect this year. The final adoption vote came after preliminary approval by the NRC in January and a sixmonth public comment period that included hundreds of written comments and two public hearings. The rule changes include creating a crossbow license and authorizing its use during the entire archery season; extending the archery season without interruption from Oct. 1 through the first Sunday in January; extending the urban zone season from Sept. 15 through Jan. 31; requiring hunters in urban zones to harvest an antlerless deer before harvesting an antlered deer; establishing a special antlerless season from Dec. 26 through the first Sunday in January in designat-

ed counties; adding the non-resident youth licenses and a new deer license bundle; requiring display of hunter orange on occupied ground blinds; and extending the rifle cartridge length that can be used in the firearm season to 1.8 inches. These changes must still be approved by the Attorney General’s Office and Governor’s Office and published in the Indiana Register before taking effect. In other actions, the NRC: – Approved the dedication of four nature preserves at Fort Harrison State Park totaling approximately 670 acres or more than one-third of the park. The sites are named Bluffs of Fall Creek, Chinquapin Ridge, Lawrence Creek and Warbler Woods – Authorized State

Park Inns to increase lodging fees from Jan. 28 through Feb. 12 to coincide with the Super Bowl in Indianapolis – Approved final adoption of rule amendments governing logjam removal from floodways and navigable waters – Turned down a citizen’s petition to allow high-speed boating on Shipshewana Lake in LaGrange County – Approved preliminary adoption of rules governing the sale, distribution and transportation of invasive aquatic plants, and a rule to regulate thousand cankers disease in walnut trees – Removed the four-toed salamander from and added the plains leopard frog and mole salamander to the state endangered species list

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September 28, 2011

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Forage Focus: Grazing harvested corn residue, a feed alternative

With Ohio farmers expecting to soon begin the harvest of 3.3 million acres of corn, the potential for the brood cow herd feed supply being extended well into fall by utilizing crop residues is huge. Corn crop residue is practical for feeding dry, gestating beef cows in mid-gestation providing they have average or better body condition. Managed correctly, one acre of corn residue can yield up to 60 animal unit grazing days (60 days of grazing for a 1,000 pound animal). Grazing “efficiency” will determine exactly how much feed is realized from corn residue. Moveable electric fencing can increase utilization up to 50 percent by allowing cattlemen to control the amount of area grazed thus, preventing the cattle from “selective” grazing or “trampling” many of the leaves or husks. “Strip” grazing the cows will also reduce the potential for acidosis in situations were there may have been excessive field losses of grain. Simply “dumping” the cows onto the entire cornfield will be least efficient but will allow more residue to remain on the field over the winter for cover. Cattle will select and eat the grain first, then the husk and leaves, and finally the cobs and stalks. Fields containing corn residues should be grazed soon after harvest for optimum

quality, and fields with poor drainage or compaction problems should not be grazed for extended periods of time. Producers with a Conservation Plan should check with NRCS to be certain that the grazing of corn stalks does not violate the Plan. If corn stalk fields are not presently fenced, temporary electric fencing is an economical alternative. Harvested corn fields can be encircled with a single strand of poly or high tensile wire supported with fiberglass posts for less than $10 per acre. Even if a fence charger must be purchased to allow the grazing of corn residue, up to 45 days per acre of feed may be provided a typical Ohio brood cow at a cost of under 25 cents/head per day. And, of course, the materials purchased to provide this temporary boundary may be reused from year to year, thus, making the “annual” cost of ownership even less. While corn residue offers a considerable amount of digestible energy and fiber, it’s always good to review the palatability and practicality of utilizing crop residues which result from either corn or soybean harvest as a significant feed source, especially if they must be mechanically harvested and transported for feeding. Of the two, certainly soybean stubble bales must be viewed as a last resort unless you have a bale processor and feed it

in limited quantities to “dilute” other high quality feeds in the ration. In fact, if your vision for utilizing soybean residue is simply placing bales of the “feed” in bale feeders, it’s probably not worth the time, fuel, wear on the machinery, and effort it takes to gather it. While it can have 3540 percent TDN and nearly 4 percent protein, this is less than even wheat straw. Simply put, as soybeans increase in maturity they increase in lignin and lignin is not digested well in the rumen. Soybean stubble might make marginal bedding, but twigs gathered from trees in your yard might make comparable feed. While corn residue has much more merit than soybean residue as a feed source and may be viewed as comparable to average grass hay, palatability of the stalks can be a problem. The husks and kernels of corn that fall during the process of harvest are the most palatable, and will be readily consumed. This lends itself very nicely to grazing being by far the best method of harvesting corn residue, whereas, baling residue will likely cause loss of the kernels. When it comes to baling and transporting corn residue - and especially if you’re thinking about traveling very far with it consumption versus waste becomes a consideration worth pondering. The husk,

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leaf, and any kernels in the bales, which will likely be a small percentage of each bale, will be readily consumed if fed in a bale ring. If you have a bale processor, much of the stalk may be consumed also. However, if you’re simply placing corn residue bales in bale rings, the abundance of corn stalks which will remain after the more desirable parts of the bale are consumed will likely become bedding. If you must feed baled corn residue in this fashion, consider simply pushing the chopper or spreader on the back of the combine forward and dropping the residue that comes through the thresher in a “windrow” and then bale only these windrows. The resulting bales will be a much higher percentage of the palatable portions of the corn residue. As you consider baling and transporting baled corn residue to your cows, carefully consider the harvest and transportation costs involved on a “per consumable and digestible ton of dry matter” basis. Don’t forget about storage and feeding losses. In addition, according to past OSU Extension fertility specialist Robert Mullen, when you remove a ton of

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September 28, 2011

Farm Futures sees acreage increases for corn, soybeans and wheat High prices should lure more land into production of major crops, Farm Futures survey shows.

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A tough growing season in 2011 won’t dim the hopes of U.S. farmers, who plan to increase production

of major crops in the coming year, according to Farm Futures magazine’s first survey of 2012 planting intentions. Lured by high prices and good profit potential, producers said they expect to plant record corn acres, along with strong increases for soybeans and wheat. Farm Futures estimates corn acreage could hit 93.87 million in 2012, up 1.7 percent from this year’s total. If achieved, that would top the postWorld War II record of 93.6 million set in 2007. And with corn prices still rising, the total could top 94 million or more, said Farm Futures Senior Editor Bryce Knorr, who conducted the online survey. Results were released at the opening day of the 2011 Farm Progress Show, the nation’s largest outdoor farm show, held near Decatur, Ill., Aug. 30, 31 and Sept. 1. “Rising prices and profits convinced farmers to increase corn plantings in 2011, and the same should hold true in

2012,” Knorr said. “Farmers are truly planting for the market these days. However, that means these intentions could change by spring if the current bull market runs out of steam.” Farm Futures pegged 2012 soybean acreage at 76.9 million, a 2.3 percent increase. Farmers are gearing up to seed 42.4 million winter wheat acres this fall, up 3.1 percent, with total wheat plantings of 58.63 million up 3.9 percent. Knorr noted that weather will play a big role in determining final wheat acreage. A late fall harvest in 2009 reduced seedings of soft red winter wheat dramatically, while 2011 spring wheat and durum acreage suffered from historic flooding on the northern Plains. This year’s concerns include severe drought on the southern Plains, notes Farm Futures Market Analyst Arlan Suderman, who says tight supplies mean every acre will count.

“Farmers are telling us that we are beginning to stretch the available acres that they are willing to commit to corn production without a more significant price incentive,” Suderman says. “That means that substantial gains in production are going to have to come either from yield or from overseas production, leaving us even more susceptible to weather risks. “The data suggests that it’s going to take a couple of years with good crops to rebuild domestic and global stocks, unless 2012 brings an unusually favorable summer to maximize yields and/or we see a significant slowdown in the Asian economy. “The soybean and wheat numbers suggest that the market continues to provide an incentive for farmers in the southern belt to double-crop the two crops whenever the weather allows them to maximize their returns. This leaves both susceptible to weather when conditions are not conducive for getting

one crop harvested and the other planted.” Farm Futures surveyed almost 1,000 growers in late July and August to gather data on yields, acreage and management practices. Survey results by crop were as follows: - Corn, 93.87 million acres, 1.7 percent change - Soybeans, 76.9 million acres, 2.3 percent change - Soft Red Winter Wheat, 8.4 million acres, 1.7 percent change - Hard Red Winter Wheat, 30.3 million acres, 4 percent change - White Winter Wheat, 3.7 million acres, -0.6 percent change - All Winter Wheat, 42.4 million acres, 3.1 percent - Spring Wheat, 14.2 million acres, 4.2 percent change - Durum, 2.1 million acres, 21.4 percent change - All Wheat, 58.63 million acres, 3.9 percent change

Forage Focus: (continued from page 21) corn crop residue from a field you’re taking with it 6 pounds of P2O5 and 25 pounds of K2O which must be replaced or redistributed to the field. Corn stover also contains organic matter that when returned to the soil does have value, but it is difficult to put a dollar value on it. Continued removal a significant portion of

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corn crop residue may have negative repercussions in the long-run in the form of decreased soil organic matter, especially if some organic matter, perhaps in the form of manure, is not returned to the

soil. Grazing corn crop residue may prove valuable and soil friendly. However, carefully consider the pros and cons of mechanically harvesting and moving residue to the cow

herd. In the mean time, see the OSU Extension Fact Sheet “Grazing Corn Residue” found at: http://ohioline.osu.ed u/anr-fact/0010.html for more details.

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

Farm incomes to reach record levels despite low crop yields

High worldwide grain demand coupled with lower-thanexpected yields means U.S. farmers can look forward to a record-high farm income total from the 2011 crop, according to a new U.S. Department of Agriculture report. In the Farm Sector Income Forecast released Aug. 30, USDA’s Economic Research Service projected the total U.S. farm income will reach $103.6 billion, up 31 percent from last year’s total. The previous farm income record was $84.7 billion in 2004. “These are not just records, but records that are substantially higher than we’ve seen before,” said Chris Hurt, Purdue Extension agricultural economist. Both crop and livestock revenues are up in 2011, but Hurt said the income totals don’t tell the whole story. Input costs are on the rise, as well. “USDA estimates

producers have put 15 percent more into the cost of inputs,” he said. “So, we have crop revenues up 20 percent and livestock up 16 percent. That says profit margins expanded in 2011.” Livestock receipt increases were led by a 27 percent increase in dairy and an 18 percent increase in beef cattle. The biggest drivers in crop revenue increases have been corn demand generated by ethanol production and soybean exports to China. Corn receipts in 2011 should reach $62 billion nationally, up 39 percent from 2010. Soybean receipts will be up 17.5 percent, at a total of $39 billion. Hurt said that’s good news for producers in the Eastern Corn Belt, where corn and soybeans make up the two largest agricultural commodities. While specific state-by-state projections weren’t available in this report, he said he

expects Indiana won’t be left out of the record-high farm incomes. Indiana’s previous farm income record was $3.2 billion statewide in 2008. “Some rough estimates suggest we will exceed the previous record in Indiana,” Hurt said. “We could get close to the $4 billion mark in total farm income in the state.” On average, low crop yields will be more than compensated for by record-high prices. Unfortunately, however, uncooperative weather and sharply reduced yields on some farms mean not all Eastern Corn Belt crop farmers will have record incomes. And, with high feed prices, some livestock producers also will be feeling the financial pinch that will continue into 2012. According to Hurt, the income outlook for the livestock sector in general for 2012 is going to be weaker

because the expensive 2011 crop will be the feed supply for most of 2012. “We see high feed costs, and right at this point we’re looking for milk and poultry prices to come down a bit, while beef and pork prices will stay fairly stable,” he said. “That says revenues may be down somewhat on livestock in 2012, but costs – particularly feed – will be up. We think the animal profit margins will be very close to flat with no real profit potential across the livestock sector in 2012.” Grain farmers also will see profit margins shrink for the 2012 crops as grain prices drop slightly and input costs increase an estimated 20 percent. Even so, Hurt said the 2012 crops should still be profitable – just not quite as profitable as 2011. “The 2011 profitability and incomes likely will hold as records for several

Expert: frost damage depends on corn growth stage, frost severity

For corn, a killing freeze occurs when temperatures are 32 degrees for four hours or 28 degrees for just minutes. But according to Coulter, “A frost or killing freeze can still occur above 32 degrees, especially in low and unprotected areas when there is no wind.” Symptoms of Frost Damaged Corn leaves are more easily damaged by frost than stalks. In addition, leaves above the ears are more susceptible than leaves below the ear. Leaves damaged by frost initially have water-soaked a appearance, are light green to gray after drying, and later turn brown. A black layer will form prematurely when kernels are killed before maturing. “Wait a few days before scouting fields

years to come,” he said. The full USDA report can be found online at http://www.ers.usda. gov/Briefing/FarmIn come/.

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With First Quality Workmanship to assess the impact of frost,” Coulter recommends. “If the frost is not severe enough to cause premature formation of the kernel black layer, the kernels will continue to accumulate dry matter.” Yield, moisture and quality frost damage to corn reduces grain and silage yields, grain test weight, and quality. silage However, yield and reductions quality depend on the crop frost when stage occurs and the severity of the frost. If leaves above the ear are damaged by frost but leaves below the ear are unharmed, then yield losses are be to expected See reduced. Crop Extension’s for article News tables that provide at detail more www.extension.umn.e

du/go/1079. The dry conditions that occurred during the last four to six weeks in much of Minnesota accelerated crop maturity. Most of the corn that was planted during the first three weeks of May was beyond the half-milk kernel stage (R5.5) when damaged, and therefore grain yield losses in these fields are expected to be low. However, in regions where corn was planted in late May or early June, the corn was around the R5.75 stage (25 percent milk) when damaged. Corn that is severely damaged by frost often has kernels that are more susceptible to cracking, grain that is less digestible, and silage that has less energy (starch) and more fiber than normal. Grain with

severe frost damage and light test weight should be monitored for mycotoxins before feeding to livestock.

2011 Fall Farm Tab

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September 28, 2011

Midwest Fish Habitat benefits from $1.2 million in funding

The U.S. Fish and Wildlife Service (Service) will provide more than $548,000 to support fish habitat projects in the Midwest under the National Fish Habitat Action Plan (NFHAP). More than $640,000 in partner contributions, nearly $1.2 million in total, will go toward restoring and enhancing stream, lake and coastal habitat, as well as improving recreational fishing and helping endangered species.

The funding is provided for priority projects identified through Fish Habitat Partnerships established under the NFHAP. The partnerships strategically direct funding and other resources to habitat improvement projects offering the highest long-term conservation returns for aquatic species. Aquatic ecosystems are especially vulnerable to changes in climate. Healthy habitats can help lessen

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the impact of climate change by providing refugia and buffering the impact of increases in water temperature and extreme fluctuations in flow. Many of the projects will improve stream flow, remove barriers or acquire scientific information needed for long-term protection against the effects of climate change. “The local partnerships cultivated through Fish Habitat Partnerships in the Midwest allow for more efficient and effective fish passage and habitat improvement projects for our native and game fish species,” said Tom Melius, regional director of the Service in the Midwest. “The National Fish Habitat Action Plan guides landscape level conservation for our fisheries resources.” More than 40 percent of U.S. fish populations are currently considered declining, half of the waters in the U.S. are impaired,

and fragmented conservation efforts are not reversing these declines. Besides climate change, principal factors contributing to these declines include: habitat destruction and fragmentation, toxic substances, invasive species, harmful algal blooms and altered thermal regimes. By helping stem these declines NFHAP projects provide fishing opportunities for the public, and enhance economies and quality of life in local communities. Highlights from this year’s funding for NFHAP Partnership projects in the Midwest include: Great Lakes Basin Fish Habitat Partnership (GLBFHP) - Butternut Creek Stream Restoration

and Dam Removal (MI) - $67, 143 in federal funds and $84,250 in partner funds to reopen 13 miles to fish passage and restore instream habitat. Ellias Cove Restoration (MI) $22,857 in federal funds and $5,000 in partner funds to restore instream and shoreline habitat with native coastal wetland plantings. Driftless Area Restoration Effort - Richmond Spring Fish Passage Improvement (IA) $42,857 in federal funds to remove or bypass four fish passage barriers and reconnect 16 miles for fish passage. - Yellow River Ford Removal and LowWater Crossing Installation (IA) $57,857 in federal funds and $70,000 in partner funds to

reopen 69 miles for fish passage. Brush Creek Habitat Restoration and Stream Bank Stabilization (IA) $53,377 in federal funds and $87,923 in partner funds to restore in-stream habitat, wetlands and riparian habitat. - Maquoketa River Iowa Fish Habitat Improvement (IA) $33,052 in federal funds and $114,500 in partner funds to enhance 4.4 instream miles and riparian habitat. Midwest Glacial Lakes Partnership (MGLP) - Strategic fish habitat conservation directed through GIS modeling - $68,571 in federal funds and $62,900 in partner funds to support habitat assessment work in Iowa, Illinois, Indiana, Michigan,

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Minnesota, North Dakota, South Dakota and Wisconsin. Ohio River Basin Fish Habitat Partnership (ORBFHP) - North Manchester Dam and Liberty Mills Dam Removal on Eel River (IN) $57,143 in federal funds and $56,400 in partner funds to reopen 190 miles of the Eel River, and conduct four population assessments and four habitat assessments. - West Milton Dam Removal Feasibility Study on Stillwater River (OH) - $14,286 in federal funds and $25,000 in partner funds to assess dam removal prospect within Great Miami Watershed. For a complete listing of funded projects, please visit: w w w. f w s. g ov / f i s h eries/fwco/nfhap.

S C O T T Y EGOLF WORKS THE controls at Strauss feed mill in North M a n c h e s t e r. Every day hundreds of thousands of pound of commodities are dropped off and picked up at the feed mill. Strauss makes all of the feed for Midwest Poultry Inc. They have five-and-a-half million chickens in the North Manchester area. (photo by Craig Brosman)

September 28, 2011

2011 Fall Farm Tab

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2011 Fall Farm Tab

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September 28, 2011

Food prices rise with commodity prices â&#x20AC;&#x201C; eventually

Food prices will continue to rise for the remainder of this

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sumers, a Purdue University agricultural economist says. While world grain stocks diminished amid growing demand, drought and flooding, food prices did not significantly increase for most of 2009 and 2010 even though prices that processors pay for raw ingredients such as corn and soybeans did, Corinne Alexander said. That is changing. â&#x20AC;&#x153;The question is not whether costs at the grocery store will increase, itâ&#x20AC;&#x2122;s when,â&#x20AC;? she said. Higher commodity prices do not always immediately result in higher food prices, Alexander said. The prices of finished food products abundant in the marketplace might not increase substantially, as has been the case this year with cheese. But when grain supplies are tight as they are now, grocery shoppers eventually

will see the increases at the cash register. Field corn, which comprises most of Indianaâ&#x20AC;&#x2122;s corn acreage, is used primarily for livestock feed, but it also is used for tortilla chips and in corn syrup. Soybeans often are used as ingredient products, such as soybean oil, which is in nearly all salad dressings. Because both grains are in short supply and are used to produce many foods, consumers can expect to see small increases in many different products, Alexander said. Strong global demand has driven exports, which means less grain stays in the United States. Now, with record-high prices for corn and soybeans and weather that reduced yield potential nationwide for feed grains, Alexander said beef prices likely will rise about 10 percent. â&#x20AC;&#x153;There is always some time lag

between higher feed costs and higher meat costs,â&#x20AC;? she said. In some parts of the country, it has been too dry for food crops such as wheat to thrive. In other states, the springâ&#x20AC;&#x2122;s wet weather hindered planting and growth for months. â&#x20AC;&#x153;Texas, Oklahoma and Kansas are experiencing a massive drought that some are comparing to the Dust Bowl,â&#x20AC;? she said. â&#x20AC;&#x153;With the lack of water, the wheat will likely be behind going into fall, so that means next yearâ&#x20AC;&#x2122;s prices will rise accordingly.â&#x20AC;? Wheat in the northern states was damaged by heavy spring rains. In North Dakota, about 1 million acres of durum wheat - the main variety used in pasta wasnâ&#x20AC;&#x2122;t planted because of Mississippi River flooding. The short supply will mean higher wheat prices and, ultimately, high-

er prices on wheat products at the grocery store. According to the Consumer Price Index, food prices have risen about 3.5 percent this year, with the most substantial increases in the foodat-home category. Consumers now pay about 5.4 percent more than last year for food at the grocery store. Food in restaurants, on the other hand, has increased at a slower rate of 2.6 percent largely because their biggest cost - labor - has been stable in a weak economy. Consumers are seeing increases in areas besides grain and meats. Coffee prices, for example, are at record highs. â&#x20AC;&#x153;For consumers, the bottom line is that if the price of coffee is at record levels, if sugar and cocoa are both up, and if milk prices are relatively high, itâ&#x20AC;&#x2122;s going to cost you more to get a mocha,â&#x20AC;? Alexander said.

Tractor sales down in United States and Canada

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USDA: Crop yields down nationally, Indiana hit hardest

The latest estimates from the U.S. Department of Agriculture show l owe r- t h a n - n o r m a l corn and soybean yields across the nation, with the biggest crop losses in Indiana. This is the second consecutive year for national crop yields below the expected average, straining already tight world grain supplies and keeping commodity prices high, said Purdue Extension A g r i c u l t u r a l Economist Chris Hurt. According to the USDAâ&#x20AC;&#x2122;s National A g r i c u l t u r a l Statistics Service September Crop Production report, released Sept. 12, national corn yields could average 148.1 bushels per acre, down about 13 bushels from trend yields. Soybeans fol-

lowed suit at 41.8 bushels per acre, down 1.5 to 2 bushels from trend. In Indiana, a state hit hard by spring floods and summer drought, average projected corn yields are 145 bushels per acre, down from trend yields of near 165. â&#x20AC;&#x153;When weâ&#x20AC;&#x2122;re talking about lower commodity prices, a loss of 20 bushels per acre doesnâ&#x20AC;&#x2122;t seem quite as bad,â&#x20AC;? Hurt said. â&#x20AC;&#x153;But when we have corn prices in the $7 range, thatâ&#x20AC;&#x2122;s a big hit.â&#x20AC;? The news on soybeans in Indiana was slightly better, with projected yields at 42 bushels per acre, down six bushels from what they might have been with normal weather. Yields that low will keep world grain stocks very tight, Hurt said. By August 2012, predicted U.S. stocks of both corn

and soybeans look to be around a bare minimum of just a 19-day supply. That means usage has to be reduced, and prices are likely to climb until they reach a point where end users, such as processors and livestock producers, are forced to reduce consumption. â&#x20AC;&#x153;End users of corn will have to cut back by about 400 to 500 million bushels, which primarily will come from 300 million bushels in livestock feed and a 185-millionbushel cut in exports,â&#x20AC;? Hurt said. â&#x20AC;&#x153;There will have to be some cutbacks in soybean use, as well â&#x20AC;&#x201C; the USDA says 110 million bushels, mostly from an 85 million bushel reduction in exports.â&#x20AC;? The major wildcard in whether soybean stocks continue to shrink is the South American crop, which

is being planted now. Should South America have favorable weather, Hurt said the crop could make up for the shortages from the U.S. yields. This is especially true since farmers in countries such as Argentina and Brazil will grow more acres of soybeans than in previous years. â&#x20AC;&#x153;The amount of Chinese soybean purchases will be up nine percent this year,â&#x20AC;? he said. â&#x20AC;&#x153;South American exports will increase, as both Argentina and Brazil have about five percent more acres and should return to more normal yields after a five percent belowtrendline yield last year. South America will cover all of the new purchases from China.â&#x20AC;? If the weather in South America holds up, farmers in the

United States can expect to see soybean prices remain strong t h r o u g h Thanksgiving, Hurt said. After that, prices could be fairly flat through the winter. However, unfavorable growing conditions in South America would send prices up quickly. USDA currently expects the U.S. average farm price for soybeans to range from $12.65 to $14.65 per bushel.

Harvesting options for high-moisture corn

by Jim Paulson, University of Minnesota Extension Late planting, immature corn and the cost of drying wet corn have many producers considering harvesting some type of high-moisture corn this year. Which method you choose is a factor of what harvesting equipment you have available or personal preference. High-moisture shelled corn and/or corn and cob meal (which has some of the cob) is harvested with a combine, and adjustments allow various amounts of cob in the grain. High-moisture ear corn (earlage) is usually harvested with a corn picker. Snaplage is harvested with a forage harvester with a kernel processor and has a snapper head. The kernel processor should be set to crack all of the kernels and break the entire cob into pieces smaller than a thumbnail. Thereâ&#x20AC;&#x2122;s renewed interest in harvesting earlage or

snaplage because you harvest an additional 10 to 15 percent digestible dry matter per acre. Most storage structures will work for each type, but upright silos need to be in good condition with enough reinforcement rings. Moisture guidelines for harvesting high-moisture corn are 28 to 32 percent for shelled corn; 30 to 35 percent for ear corn; and 35 to 40 percent for s n a p l a g e . Harvesting in these ranges assures that there will be adequate moisture for fermentation and allow for good packing. Harvesting drier than these guidelines increases the risk of molds and poor fermentation. Harvesting corn at a high moisture rate will increase the rate of ruminal digestion compared to dry corn. Also, the longer highmoisture corn is fermented, up to approximately six months, the faster the rate of digestion and the greater the

extent of starch digestion. Feed testing laboratories can provide information on starch digestibility and energy value of the corn. Changing the amount fed, feeding in a total mixed ration and additional buffer are strategies that may be needed. Snaplage tends to have the most variability as a feed. Variables such as grain moisture, cob moisture, corn hybrid and machine settings will change the amount of husk and stalk harvested. It is better to error on the wet side and a finer chop so not to have too many large pieces of husk, stalk and cob. More frequent monitoring of dry matter, neutral detergent fiber and starch content is suggested with snaplage. If youâ&#x20AC;&#x2122;ve had a frost or hard freeze, harvest timing will be critical due to the rate of drydown of the plant and grain. Check for black-layer development first. If the corn has not

â&#x20AC;&#x153;Prices are expected to provide a positive return for onfarm storage into December or January, but maybe not beyond,â&#x20AC;? Hurt said. â&#x20AC;&#x153;Commercial storage may not pay this year, especially if the South American crop is large.â&#x20AC;? Corn farmers also arenâ&#x20AC;&#x2122;t likely to see a profit from commercial storage. USDA projects average farm prices for corn at a record high $6.50 to

$7.50. Hurt said onfarm storage looks profitable into spring and early summer, with prices rising more than enough to cover storage costs. The full USDANASS report is available for free download a t http://usda.mannlib. cornell.edu/MannUs da/viewDocumentInf o.do?documentID=104 6.

/05)*/( 065 ."/&67&34 5)& ,6#05" . 4&3*&4 "HJMJUZ WFSTBUJMJUZ QPXFS BOE QSFDJTJPOÂąUIF ,VCPUB . 9 IBT JU BMM 8IFO JU DPNFT UP HFUUJOH NPSF EPOF JO MFTT UJNF UIJT QSFNJVN NJE TJ[F USBDUPS NPWFT MJLF OPUIJOH FMTF PO FBSUI Â&#x2026; 150 )1 Â&#x2026; 1PXFSGVM ,VCPUB EJFTFM FOHJOF Â&#x2026; &YDMVTJWF #J 4QFFE UVSO Â&#x2026; ' Y 3 %VBM 3BOHF *OUFMMJ 4IJGUÂ&#x160; USBOTNJTTJPO

black-layered, the cob will remain soft, with adequate moisture. Once mature corn has had a killing frost, dry-down can progress quickly if weather conditions are favorable. If the corn was immature and still is wet, watch for possible development of field molds.

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2011 Fall Farm Tab

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U.S. beef and pork exports for July continue to rise July was another very strong month for U.S. beef and pork exports, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Both are on pace to set new export value records in 2011 and to eclipse the $5 billion mark for the first time ever. Beef exports set a new value record in July of $513.1 million, on a volume of 120,424 metric tons. For the first seven months of the year, exports totaled 741,275 metric tons valued at nearly $3.1 billion - an increase of 26 percent in volume and 40 percent in value over last yearâ&#x20AC;&#x2122;s pace. July exports equated to 16.3 percent of total U.S. production with a value of $236.88 per head of fed slaughter. This compared to 12 percent and $159.34 per head last July. For the year, beef exports equated to 14.2 percent of production with a value of $198.67 per head of fed slaughter. July pork exports totaled 169,547 metric tons valued at $480.06 million â&#x20AC;&#x201C; an increase of 16 percent in volume and 24 percent in value. This pushed the 2011 total to 1.25 million metric tons valued at $3.3 billion â&#x20AC;&#x201C; increases of 14 percent and 20 percent, respectively, over last year. July exports equated to 28.7 percent of production with a value of $59.35 per head, compared to 23.8 percent and $45.95 in July 2010. For the year, pork exports equated to 27.3 percent of production with a per head value of $53.63.

DIESEL FUEL AND

LUBRICANTS

September 28, 2011

Drought stress blankets Indiana, likely continues into harvest The abnormally dry and drought conditions that most of Indiana is experiencing donâ&#x20AC;&#x2122;t appear to change as farmers statewide prepare for harvest, according to the associate state climatologist. Indiana is at the eastern end of a Midwest drought region, which has been classified as severe and covers much of central Illinois and part of southeast Iowa, said Ken Scheeringa of the Indiana State Climate Office at Purdue University. Ohio has fared better, as the state had almost no drought areas as of the Sept. 6 U.S. Department of Agricultureâ&#x20AC;&#x2122;s Drought Monitor u p d a t e (http://droughtmonitor.unl.edu/). Dry conditions are categorized on a scale from D0 (drought watch, or abnormally dry) to D4 (exceptional drought). Nearly all of Indiana has

reached at least D0, with moderate drought (D1) covering much of the southern half of the state. More severe drought (D2) blankets an area in Johnson and Morgan counties in the central part of the state. â&#x20AC;&#x153;The historical drought in Texas is creeping northward, with Oklahoma following closely in terms of its drought features,â&#x20AC;? said Dev Niyogi, Indiana State Climatologist. â&#x20AC;&#x153;The swatch of droughtprone area is now reaching parts of the Midwest, particularly along southern Indiana.â&#x20AC;? Part of what has contributed to the dry conditions is La NiĂąa â&#x20AC;&#x201C; a weather pattern that occurs when the surface temperature of vast areas of the Pacific Ocean are cooler by at least 1 degree Fahrenheit. â&#x20AC;&#x153;Indianaâ&#x20AC;&#x2122;s weather patterns have been sensitive to La NiĂąa,â&#x20AC;? Scheeringa said. â&#x20AC;&#x153;Studies conducted at

the Indiana Climate Office suggest that typically winter and early spring La NiĂąa patterns lead to excess rains, and in late summer Indiana experiences abnormally dry conditions. The current status of the swings from a wet early spring to lateseason drought is consistent with the La NiĂąa signature.â&#x20AC;? Another contributing factor is the storm tracks. While the continued dry conditions may not be ideal for late-developing crops around the state, Scheeringa did forecast good harvesting conditions. The Indiana outlook is for normal to slightly below normal temperatures throughout harvest, with slightly lower than normal rainfall. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t see any real interruptions to harvest as the present tropical storm track seems to be just east of Indiana,â&#x20AC;? Scheeringa said.

Poor kernel set likely decreases corn yield potential A period of extremely hot, dry weather in Indiana this summer has led to problems with corn ear development and kernel set, a Purdue Extension agronomist said. Kernel fill problems occur when crop stresses, such as

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receive pollen and leave the tip of the ear without kernels, Nielsen said. â&#x20AC;&#x153;Zipper earsâ&#x20AC;? â&#x20AC;&#x201C; so-called because one or more rows of kernels are missing in one section â&#x20AC;&#x201C; are another type of poor kernel set. Problems with grain fill occur because incomplete pollination often leads to kernel abortion. If crop stress occurs in the early grain fill stages and the leaves cannot produce food, Nielsen said kernels will not develop. High rates of kernel abortion on one part of the ear could cause the ear to curve. While there is no

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â&#x20AC;&#x153;Ohio may see more impacts of hurricane remnants than Indiana will. But the tropical storm track is always a big uncertainty in terms of turning the drought region into a floodprone area. So we need to watch that carefully.â&#x20AC;? Although Indiana has been at the end of the lingering La NiĂąa, he said there are indications of resurgence. If this holds true, this fall and winter are likely to mirror the last - although the pattern started a bit earlier this year. â&#x20AC;&#x153;The timing seems a bit earlier than a year ago,â&#x20AC;? Scheeringa said. â&#x20AC;&#x153;For example, the dry conditions started a few weeks earlier than last year. But if the La NiĂąa pattern of a year ago virtually repeats itself, then we are likely to see a rerun of last winterâ&#x20AC;&#x2122;s conditions.â&#x20AC;?

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explanation as to why rows of kernels do not develop in one section, Nielsen said the portion of the ear with the kernel set problem is typically the same part over which the silks draped during pollen shed. â&#x20AC;&#x153;This leads me to speculate that perhaps the draping of the silks resulted in the underlying silks being shaded from initial contact with pollen,â&#x20AC;? he said. â&#x20AC;&#x153;That may have led to those silks never coming into contact with pollen or those silks being pollinated later than the rest.â&#x20AC;? Regardless of the types of poor kernel fill, weather is the primary trigger, leaving little for farmers to do about the problem. â&#x20AC;&#x153;The only suggestion I can give is to try to reduce soil compaction so it will take more time for drought conditions to damage the plants,â&#x20AC;? Nielsen said. â&#x20AC;&#x153;Soil compaction limits root growth and keeps the plants from getting water. Plus, reducing compaction is a best management practice that farmers should be working on every year.â&#x20AC;? More information about kernel set and photos of different grain fill issues are available at http://www.agry.purdue.edu/ext/corn/ne ws/timeless/Zipper.h tml.

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

High milk prices keep some struggling dairy farms afloat

increased regulations, said Purdue University dairy specialist Mike Schutz. After a wet spring and extremely dry summer, silage, hay and other forages are expensive but low in essential components, such as energy. That means producers have to supplement the already pricey feed supply with corn, a crop now bringing record-high prices. “In Indiana we’ve already seen per-cow

uct yields and reduce shelf life. The new regulations brought Grade B milk – manufacturing grade – cell counts down from 1 million per milliliter to 750,000, the same as for Grade A. The one saving grace has been strong milk prices. But even at prices above $20 per hundredweight, milk producers haven’t been turning much of a profit. Milk prices producers receive have risen substan-

thing dairy farmers can do is to manage feed costs as well as they can by forwardcontracting feed costs when fair returns are available. He also suggested focusing on risk-management when it comes to milk production. “When producers find milk prices that guarantee a reasonable return, they should take advantage of those to protect against loss,” Schutz said. “They

Purdue announces new investments in student scholarships, faculty recruitment efforts mote private gifts for scholarships for Indiana residents, students from diverse backgrounds and students who demonstrate top academic performance. The money also will be used to help support scholarships for military veterans and their dependents. “Enhancing private giving for scholarship support is a primary way we can make sure Purdue stays affordable for students, and we’ve had great support from our alumni and other donors for these efforts,” Córdova said. “This allocation will help deans and department heads reach out to extend that support even further.” Philanthropic support for scholarships has been a priority for Purdue over the last four years. The Access and Success

campaign attracted $42.6 million in 20102011. That brings the total raised to $170.6 million, which is on target to reach its $304 million goal by 2014. Total financial aid at Purdue in 2009-2010 from all sources was $522.8 million, 25 percent of which comes from university sources. Faculty start-up packages, a key element in recruiting e s t a b l i s h e d researchers and top faculty, can range from $250,000 to several million dollars depending on the discipline and breadth of the research program. “I hope that with increased investment in faculty hiring, we will continue to be successful in recruiting persons of the quality of Jay Melosh and Jiang-Kang Zhu, both members of the National Academy of

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Sciences who we recruited to the colleges of Science and Agriculture last year,” Córdova said. “I have every confidence that we will continue to retain faculty at the high level that the provost and deans have managed this past year, in spite of fiscal challenges.” Purdue successfully retained 138 faculty members out of 155 who either had employment packages from other universities or were being heavily recruited in the last fiscal year. Purdue has a strong reputation in financial circles for the rigor and performance of its investment strategies and outcomes. Analysts at CNBC recently lauded Purdue for its handson management of hedge funds and other investment tools.

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Purdue University President France A. Córdova announced two new programs to aid more students with scholarships and attract top faculty with additional money for setting up research programs, hiring graduate students and equipping laboratories. Córdova has allocated $7 million for student scholarships that will be used to stimulate efforts to raise private donations for student support. Faculty recruitment efforts will get a $6 million boost to enhance start-up packages for research support. The programs were made possible by one-time gains realized this past fiscal year from university investments. The scholarship support will be onetime matches to pro-

also should make the best use of milk quality premiums.” Other ways producers can protect profit margins are to store feed properly to avoid shrink losses or spoilage, or to look at opportunities to sell culled cows and extra replacement heifers. “Replacement heifers are bringing really good prices right now,” Schutz said.

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• C-IH 8340 MOCO • C-IH 9’ DISK MOWER “NICE” • JD 660 HAY RAKE • 10’ PULL TYPE HAY RAKE • ’07 NH 570 SQUARE BALER “LIKE NEW” • NH 565 SQUARE BALER W/ THROWER • NH 311 BALER W/ THROWER “VERY NICE” • NH 77 BALER W/ WISCONSIN VE4 AIR COOLED ENGINE • JD 3950 CHOPPER • ’08 CRUSTBUSTER 850 GARIN CART “NICE” • J&M 1075 GRAIN CART • J&M 750-14 GRAIN CART • J&M 525 GRAIN CART • BRENT 672 GRAIN CART • BRENT 620 GRAIN CART • BRENT 420 GRAIN CART • UNVERFERTH 4500 GRAIN CART • M&W 300CA GRAIN CART • SEVERAL 250-500 BUSHEL WAGONS • BUSH HOG 2620 20’ BATWING MOWER • BUSH HOG 2010 10’ PULL TYPE MOWER

“NICE” • JD 709 ROTARY CUTTER • JD 2018 BATWING MOWER • WOODS BW 180 BATWING MOWER • KODIAK 3615 BATWING MOWER “NICE” • JD 20’ STALK CHOPPER • BALZER 20’ STALK CHOPPER • JD 450 MANURE SPREADER • NH 327 MANURE SPREADER • JD 850 SLINGER SPREADER • NI 14A SPREADER “NICE” • (2) NI 12A SPREADER • JD 740 LOADER • FRIESEN SEED CART • JD 420 END TRANSPORT ROTARY HOE • 40’X10” ELEVATOR • 1650 BPH HANCE 26’ LEG • 500# ALUM. PURINA INSTANT WEIGH SCALES • 1000 GAL CHEM FARM LITTLE TOW W/ 2”X1” PUMP & CONTROLS • 8 ROW BONDING SPRAYER BOOM • SEVERAL JD, CIH, IH WEIGHTS

• ’09 JD 320 SKIDSTEER CHA, 575 HOURS • ’97 JD 9300 620/70RX42 W/ DUALS, 24 SPEED, BAREBACK, 4708 HOURS • ’95 JD 8100 MFWD, 18.4X42 W/ DUALS, AUTO TRAC READY, 3480 HOURS “NICE” • ’85 JD 4850 MFWD, 20.8X38 W/ DUALS • ’91 JD 2955 CHA 2WD, 8590 HOURS • JD 2750 CHA 2WD “SALVAGE” • ’87 JD 855 2WD W/ 72” DECK, JD FRONT BLADE, 1044 HOURS • JD 850 2WD W/ 72” BELLY MOWER, 4534 HOURS • ’75 JD 4430 CHA, QUAD, 9100 HOURS • JD “A” • JD “B” • KUBOTA L3010 4X4, 1855 HOURS • IH 3788 • IH 3588 • ’81 CASE 2390 CHA, 4776 HOURS • CASE 2390 CHA, 4890 HOURS • CASE 1270 CHA • CASE 1490 W/ LOADER, 2250 HOURS • WHITE 2-155 CHA, 5795 HOURS • ’76 MF 1155 W/ CAB, 5444 HOURS, 1000 HOURS ON ENGINE • ’01 NH TC30 W/ LOADER, 2675 HOURS • ’04 JD 9860 STS, FLOATERS, CHOPPER, 2481/1627 HOURS • ’05 JD 9760 STS, 20.8X42 W/ DUALS, CM, CHOPPER, 4X4, 1185 SEP HOURS

• ’05 JD 9760 STS, 20.8X42 W/ DUALS, CM, CHOPPER, 2WD • ’05 JD 9660 FLOATERS, CHOPPER, CM, 1609/1201 HOURS • ’04 JD 9660 STS, FLOATERS, CHOPPER, CM, 1540 SEP HOURS • ’04 JD 9660 FLOATERS, CHOPPER, CM, 2000/1392 HOURS • ’04 JD 9660 20.8X38 W/ DUALS, CM, CHOPPER, 4X4, 1721 HOURS • ’00 JD 9750STS, 20.8X42 W/ DUALS, 2803/2060 HOURS • ’03 JD 9550 30.5X32, CHOPPER, 2309/1705 HOURS • ’01 JD 9550 30.5X32, CHOPPER, 2110 SEP HOURS • ’01 JD 9550 18.4X38 W/ DUALS, CHOPPER, 1948 SEP. HOURS • ’01 JD 9550 18.4X38 W/ DUALS, 4X4,CHOPPER, 2750/2050 HOURS • ’03 JD 9650 STS, FLOATERS, CHOPPER, 3000/2100 HOURS • ’02 JD 9650 STS, 18.4X42 W/ DUALS, 2198/1563 HOURS • ’02 JD 9650 STS, FLOATERS, CHOPPER, CM, 1627 SEP HOURS • ’02 JD 9650 STS, 20.8X42 W/ DUALS, SPREADER, 1906 SEP HOURS • ’01 JD 9650STS, FLOATERS, CHOPPER, 2050 SEP HOURS • ’01 JD 9650W, FLOATERS, CHOPPER, 3405 SEP HOURS • ’00 JD 9650W, 20.8X42 W/ DUALS, CHOPPER, CM, 2WD, 1831 SEP HOURS • ’98 JD 9610, 20.8X38 W/ DUALS, 2131 SEP HOURS

• ’97 JD 9600 COMBINE, 3887/2931 HOURS • ’96 JD 9500 COMBINE, 30.5X32, 2WD, 2899 SEP HOURS • ’95 JD 9500 COMBINE 30.5X32, 3300/2200 HOURS • ’92 JD 9600 COMBINE 18.4X38 W/ DUALS, 2000 SEP HOURS • ’91 JD 9600 COMBINE 3000/2413 HOURS • ’91 JD 9600 COMBINE • ’90 JD 9500 COMBINE 3385/2293 HOURS • ’90 JD 9500 COMBINE 30.5X32, 2WD, 2954 SEP HOURS • ’85 JD 7720 TITTAN II, 2WD, 6502 HOURS • ’85 JD 6620 TITTAN II • (2) ’79 JD 6620 4300 HOURS • (2) JD 930F PLATFORMS • (3) JD 930 PLATFORMS • (5) JD 925 PLATFORMS • ’97 JD 922 PLATFORM • (4) JD 920 PLATFORMS • JD 918 PLATFORM • JD 218 PLATFORM • ’08 GERINGHOFF 8RN CHOPPING CORN HEAD • ’06 JD 1293 CORN HEAD, HYD. DECK PLATES, FLUTED ROLLS • ’04 JD 1293 CORN HEAD, KNIFE ROLLS • ’98 JD 1293 CORN HEAD • ’98 JD 893 CORN HEAD • ’95 JD 893 CORN HEAD HYD. DECK PLATES, KNIFE ROLLS • (7) JD 643 CORN HEADS • (2) JD 443 CORN HEADS • JD 494 CORN HEAD • ’95 GLEANER R62, 30.5X32, 2918 HOURS, “REBUILT” • GLEANER 500 25’ PLATFORM

Auction Note: This is only a partial listing, much more will be added by sale day. Consignments taken through sale day. Low commission rates. Pefley’s Farm Equipment is not responsible for lost or stolen property, accidents, or no- shows. All items subject to prior sale through Sat. October 1, 2011. Lunch will be available at auction sight. We will be selling with 2 trucks SOME of the day. All items must be removed within 30 days! All items purchased via online bidding will have a 2.5% buyers premium added to their winning bid with a $750 Maximum. Next Auction Thursday Dec. 1, 2011.

• ’98 GLEANER 6RN HUGGER • GLEANER F2 COMBINE W/ HEADS • JD 635 F PLATFORM • JD 630F PLATFORM • ’00 C-IH 2388, CHOPPER, 2WD, FT, RT, CHOPPER1678 HOURS • ’78 IH 1440 3088 SEP HOURS • ’05 C-IH 2020 30’ PLATFORM • ’02 C-IH 1020 30’ PLATFORM • (4) C-IH 1020 20’ PLATFORMS • (3) C-IH 1020 25’ PLATFORMS • C-IH 1020 22 ½’ PLATFORM • C-IH 820 15’ PLATFORM • (2) C –IH 1083 CORN HEADS • IH 963 CORN HEAD • IH 843 CORN HEAD • NH 974 6RN CORN HEAD • JD 7200 16RN PLANTER, FINGER PU, NT, LIQ. FERT, • ’97 JD 1850 40’ AIR SEEDER W/ 787 CART, HAUKOS MARKERS • ’95 JD 750 NO-TILL DRILL • ’91 JD 750 NO-TILL DRILL • ’91 GREAT PLAINS 15’ NO TILL DRILL • KRAUSE 3118 18’ SOIL FINISHER “NICE” • BRILLION 13 SHANK MULCH TILLER W/ STINE LEVELER • (2) SUNFLOWER 4311-7 SHANK DISK CHISEL • LANDOLL 9 SHANK DISK CHISEL • DMI 9 SHANK DISK CHISEL • HINIKER 1224 FIELD CULT. • JD 220 27’ WHEEL DISK • JD 48 LOADER • ’01 WOODS BACKHOE FOR SKIDSTEER • MACDON 4000 MOWER CONDITIONER

• NH 114 MOWER CONDITIONER • MF 31 7’ SICKLE MOWER • BUSHHOG 14’ ROTARY MOWER • BUSH HOG 7’ DISK MOWER • GELH 1870 ROUND BALER • NEW FRONTLINE 72” BLADE • FRONTIER 60” BLADE • KODIAK REAR BLADE • TAYLOR WAY 72” FINISH MOWER • (2) J&M 150 BUSHEL WAGONS • MEYERS MANURE SPREADER “NICE” • BETTER BUILT 1500 GAL SPREADER • (4) JD Z830 ZERO TURN MOWER LESS THAN 125 HOURS • SEVERAL L&G MOWERS • “NEW” LOWE SKIDSTEER HYD AUGER W/ 9” & 12” BITS • “NEW” LOWE SKIDSTEER HYD AUGER W/ 12” BIT • “NEW” STOUT SKIDSTEER BRUSH GRAPPLE, 72” • “NEW” STOUT SKIDSTEER GRAPPLE BUCKET • “NEW” STOUT SKIDSTEER MATERIAL BUCKET • (2) “NEW” STOUT RECEIVER PLATES • “NEW” STOUT ADD ON GRAPPLE ATTACHMENT • (2) “NEW” STOUT SKIDSTEER PLATES • “NEW” STOUT SKIDSTEER WALK THROUH 48” PALLET FORKS • “NEW” STOUT SKIDSTEER 48” PALLET FORKS

Financing options from: SCI Leasing 800-435-4700 Farm Credit “Steve Kreider” 574-551-6691

• ’06 JD 9860 STS COMBINE, 35.5X32, 4X4, CM, 1260/899 HOURS • ‘03 JD 9750 STS COMBINE, 20.8X42 W/ DUALS, CHOPPER, 2790/1933 HOURS • ’01 JD 9750 STS COMBINE, 20.8X42 W/ DUALS, CHOPPER, 3000/2000 HOURS • ’97 JD 9600 COMBINE, FLOATERS, 4X4, 3822/2575 HOURS • ’96 JD 9500 COMBINE, 24.5X32, CHOPPER, 4406/2897 HOURS “NICE” • SEVERAL ’01-’94 JD 930F PLATFORMS • ’08 GEHRINGHOFF 800 8RN CORN HEAD • ’01 JD 925F PLATFORM “NICE” • ’97 JD 925 PLATFORM W/ FULL FINGER AUGER, “NICE” • ’97 JD 922 PLATFORM • JD 444 CORN HEAD • ’99 C-IH 2344 COMBINE, SPEC. ROTOR, ROCK TRAP, 30.5X32, AFS, 1520/1186 HOURS • ’84 IH 1460 COMBINE • (3) C-IH 1020 30’ PLATFORMS • ’00 C-IH 1020 25’ PLATFORM “NICE” • C-IH 1020 17 ½’ PLATFORM “NICE” • ’09 C-IH 2020 35’ PLATFORM • SEVERAL HEADER CARTS • ADAPTER FOR C-IH 2020 HEAD TO OLDER C-IH COMBINE

COMMISSION RATES WILL BE AS FOLLOWS: $1-$250 $251-$19,999 $20,000-$49,999 $50,000-$74,999 $75,000 AND ABOVE

$25 Minimum 10% w/$400 Maximum $500 $750 $1,000

NEXT AUCTION THURSDAY, DECEMBER 1

AUCTIONEERS: CAL KAUFMAN #AU01051620 • PERRY WILKINSON #AU10900084 Auction House: #9104231 • Phone: 260-782-2222 • Fax: 260-782-2224 e-mail: dave@pefleys.com or steve@pefleys.com • web address: www.pefleys.com

Airports: Lodging: Knights INN:PFE Rates Wabash Municipal 260-563-745 Charley Creek INN:PFE Rates or Fort Wayne Holiday INN: 260-563-0111 International 260-569-1189

2011 Fall Farm Tab

September 28, 2011

www.thepaperofwabash.com

PEFLEY’S FARM EQUIPMENT AND DRP COMPANY INC. have grown to include 45 employees. Pictured are (from left): front row, Aaron Rosen, Ronnie Sparling, Joe Yoder Jr., Bob Pefley, Roger Eltzroth, Brian Ridgeway, Bobby Carr; back row, Steve Anderson, Jack Eads, David Pefley, Calvin Unger, Jake Buzzard, Jack Strange, and Dave Good. (photo by Brent Swan)

GRAIN DRILLS AND CULTIVATORS await buyers at Pefley’s Farm Equipment, Lagro. (photo by Brent Swan)

Pefley’s Columbia City. “We had my first sale here in Lagro, and we had probably about 20 tractors,” David said. “We sold off of one truck, and it took 3-4 hours.” Today, the sales are quite different with two auction trucks running at the same time and a sale day staff of 25 people. The next sale, slated for Oct. 6, is shaping up to include 75 combines and 200 tractors alone. “The largest sale I’ve done since I started was in April three years ago,” David explained. “In that single sale, we sold over 1,100 pieces of farm machinery in one day.” What was once a relatively small operation has now grown to include not only every piece of farm machinery imaginable, but

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bidders from outside the United States as well. “Our typical bidders come here from all over the Midwest, along with quite a few from the East Coast and Northeast part of the United States,” David explained. “Recently, I’ve seen three groups of customers come from Belize, a buyer came up from Uruguay, and we’ve seen several Mexican and Canadian bidders come here. It goes to show how this business is constantly changing.” In addition to the auctions, we also run a retail side of the business. “The Internet has changed what we do a lot,” David said. “We hired Steve going on four years ago to

advertise and manage the retail sales in between auctions. He does all the advertising and takes basically all the phone calls that come for our retail side of the business. Adding him has proved to be a tremendous boost to our business.” As the business has grown, so to has the entire workforce at Pefley’s. “When Dad started, it was just him,” David said. “Now we have 15 people employed at Pefley’s Farm Equipment and another 30 at our trucking business, DRP Company, Inc. A lot of the success we have at Pefley’s Farm Equipment can be attributed to the success of our trucking business.” The trucking busi-

ness has become so large for the Pefleys that they recently purchased the Andrews Sand and Gravel facility (Huntington Redi Mix), and are working to convert the site into a mechanical shop for DRP. DRP, which operates 20 trucks throughout the year, and upwards of 30 at peak times, delivers new equipment to farm dealerships all over the Midwest and into Iowa. Many times, those dealerships wind up becoming good customers of Pefley’s Farm Equipment. Despite the recent success, David said he’s always cognizant of the times his father had to go through. “Since I started, I haven’t been through a time, where I’m big enough to know things are bad,” David said. “I’ve been fortunate enough that the farmers have had a pretty good time while I’ve been here. He told me back then that he didn’t want to see me do this.” In time, Bob has grown to appreciate the fact David has picked up where he left off. “No one wants to start a business and get to the point where they can be successful, just to watch it gradually fade away,” Bob said. “When David told me what he was going

ROWS OF COMBINES sit in the absolute portion of Pefley’s Farm Equipment. The next auction, scheduled for Oct. 6, will include over 70 combines and 200 tractors. (photo by Brent Swan)

MILLER AUCTION AND MOVING SERVICE

to do I originally said, ‘Oh my.’ All-in-all, things have gotten to where we are today and I couldn’t be happier for him. I became especially happy when I saw it was working.” Today, both Pefleys agree that without the support of the customers and employees they have gained over the years, none of the success would have been possible. “We couldn’t have done any of this if we didn’t have the help of our Lord plus the support of our family and the cooperation of our customers and friends,” Bob said. “This is home,” David said about the continued investment in Lagro and Wabash County. “I don’t know anything other than Wabash County. I travel a lot, all over the United States and a few different places outside the United States, and I can say whole-heartedly that there is nowhere I’d rather live and work than right here.”

LARRY J. MILLER AUCTIONEER Personal Property • Farm Commercial • Residential Email: larryjmiller22@hotmail.com 1089 E 1500 N North Manchester, IN 46962

Phone 260-982-1390 Cell 260-578-0545 6785

Snyder Tire and Battery 2 N. Wabash Ave., LaFontaine, IN

765-981-4012

www.snydertire.info

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2011 Fall Farm Tab

September 28, 2011