Cedar Valley Farm & Ag Harvest Edition
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September 20, 2017
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farm & ag harvest edition
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ag guide | new era
New Methods in Farming
F
arming for years has been undergoing a progressive evolution across planning, machinery and productivity.
TRENDS
beginning principal operators who reported their primary occupation as farming increased 11.3 percent from 36,396 to 40,499 between 2007 and 2012, according to the 2012 Census. Principal operators were on average 58.3 years old and were predominantly male, while second operators were slightly younger and most likely to be female. Cultural diversity also is sweeping the farming industry, with all categories of minority-operated farms increasing between 2007 and 2012. Hispanic-operated farms had a signifi-cant 21 percent increase.
DIVERSITY
Approximately 294,000 U.S. farms operated on 10 or fewer acres in 2007, according to the United States Department of Agriculture, catalyzing what is labeled by experts as the smallfarming revolution. Many of these small opera-tions make up the approxi-mately 144,530 farm opera-tors who reported selling products directly to consum-ers. In 2012, these sales totaled more than $1.3 billion (up 8.1 percent from 2007).
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Climate and market challenges have shifted farming strategies into more efficient and cost-effective models. Such trends are evident with-in the 2012 Census of Agriculture, which has told the story of American farming since 1840. At the base of many new farming methodologies is technology, as pointed out by the 2012 Census: • Farms with Internet access rose from 56.5 percent in 2007 to 69.6 percent in 2012 • 57,299 farms produced on-farm renewable energy, more than double the 23,451 in 2007 • 474,028 farms covering 173.1 million acres were farmed with conservation tillage or no-till practices.
Precision Planting: Automatic row shut-off and variable-rate seeding are two of the main factors driving farmers’ decisions to trade in their older, smaller planters for newer ones equipped with the latest in precision-plant-ing technologies. Vertical Tillage: This relatively new method of tillage is centered upon sizing and optimizing crop residue with light incorporation at high speeds.
Non-technically speaking, one of the largest driving factors in new methodologies can be found in an analysis of the farming age shift. Young,
SMALL ACREAGE
Your future is ahead of you. John Deere is behind you. John Deere is committed to FFA and its continued education and career-development opportunities. FFA is improving upon the hope for a world with more crop availability and less food insecurity. Because each day that you choose to work toward a stronger, more sustainable world is a new chance for growth within the farming community and beyond. www.JohnDeere.com
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Welcome to the Team! “I have had great interactions with LSB as a customer and am honored and humbled to join the LSB board! It’s always exciting to find opportunities that align with my passions. My father’s family was in banking and my first job was as a bank teller in one of Iowa’s many small towns. I have enjoyed a career in agriculture working at John Deere for 15 years and on our family farm the last five years. I look forward to utilizing the skills and experiences I have gained to serve on the board!”
Sally Hollis, Owner- Lanehaven Farms, Inc. Member FDIC
MyLSB.com | (800) 588-7551
We’re thrilled to have Sally Hollis Join the LSB Board of Directors
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ag guide | looking forward
Y
The Future of Farming
oung farmers may wonder if it’s a good time to enter the industry.
With increasing expenses and weather unpredictability, it’s easy to understand their trepidation. According to research by the United States Department of Agriculture, farmers young and old can take comfort in the fact that farm equity is projected to reach another near-record level this year and next, despite an expected slowdown in asset growth and boost in debt levels. Below are the key pieces from the department’s recent studies. The numbers show promise in various sectors of the farming industry, as well as downward trends in others. • Net farm income was forecast to be $113.2 billion in 2014, down 13.8 percent from 2013’s forecast of $131.3 billion. • If realized, the 2014 forecast would be the lowest since 2010, but would still remain more than $25 billion above the previous 10-year annual average and would rank fifth-highest since 1973. • Total production expenses are forecast to be 4 percent higher in 2014, which would be the fifth consecutive increase since last falling in 2009. • Farm financial risk indicators such as the debt-toasset ratio are expected to continue at historically low levels, indicating continued
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financial health for the sector. • Livestock receipts are expected to increase by more than 15 percent in 2014, due to a 21 percent increase in dairy, a 20 percent increase in hog, and a 15 percent increase in cattle receipts. • Corn receipts are expected to experience the largest dollar decline in 2014 receipts among farm commodity categories. While U.S. corn production is forecast to reach a record level in 2014, the annual corn
price is expected to fall by 32.4 percent. • Higher expected hay receipts reflect forecasts of higher production, drawing down of hay inventories and higher average prices. • A decline of $2.3 billion is forecast for receipts from fruits and nuts in 2014, reflecting expected declines in production cranberries, grapes, peaches, pears, grapefruit, lemons, and oranges.
Scott Schiefelbein Cedar Falls, IA NLMS #1434245 319-266-3551
Sue Weber Cedar Falls, IA NLMS #1551515 319-266-3551
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THANK A FARMER To those who work in acres, not in hours, we thank you. We are proud to protect many of our area farmers with quality farm insurance. Trust in Tomorrow.™ Contact us today.
“Trust in Tomorrow.” and “Grinnell Mutual” are property of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2017.
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ag guide | safety in the field
Limb Loss not Limiting F
© courtesy
arming has always required a dedication to hard work and physical labor. And while many aspects of farming have become more automated, the physical demands have not gone away. Climbing up bins, servicing and repairing heavy equipment and working a shovel are just a few of the physical tasks associated with farming. While regularly completing tasks such as those mentioned would be physically challenging for most, imagine tackling them after loss of a limb. That’s exactly what area farmer Chris Domeyer has been doing for over 10 years since losing his right leg in a work accident. Chris worked for the DOT as an operator and while cleaning out the bed of his salt truck on November 17, 2005, his ankle was grabbed by the auger, resulting in an injury that necessitated amputation of his leg below the knee. While a traumatic injury such as this would seem to greatly limit one’s ability to complete very active and physical tasks, Chris was determined to continue doing the things he loved, especially farming. “My attitude and motivation to continue farming were never in question following my amputation; I just had to find my ‘new normal’ in order to meet some of the physical demands of the job. For Chris, finding that ‘new normal’ has meant
adjusting how he approaches many tasks that he never gave a second thought to prior to losing his leg. Climbing ladders into equipment, making repairs in tight spaces and inspecting his fields are just a few of the tasks that have required new adaptations. “Before my accident, when a job needed completing, I just dove in and did it. Now I pause a minute and determine how I might have to adapt my approach in order to complete the task. It’s not a bad thing; it’s just my New Normal.” In addition to a great attitude and an ability to adapt how he approaches his farm work, Domeyer also credits the expertise and work of the clinicians at Clark & Associates Prosthetics and Orthotics in Waterloo. “John Costello at Clark & Associates has been with me from the start. He has always kept the focus on helping me continue to do the things I love to do, especially farming.”
Because farming requires physical work, the fit of the prosthetic socket and the chosen componentry are extremely important. “Chris is very active and pushes his prosthetic device to its limits which means we have to utilize componentry that can meet those demands,” said Costello. “From his microprocessor ankle to his vacuum pump suspension socket, we strive to provide Chris with the best prosthetic solutions for living the active lifestyle that he loves.” Farming has been at the center of Chris Domeyer’s active lifestyle for many years and he has no plans for that to change any time soon. Though his ‘new normal’ may have changed the way in which he approaches certain physical tasks on the farm, his passion for the work will continue to be the driving force behind his love for farming.
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Proud to Support Iowa’s Farmers providing solutions for both lower and upper extremity amputees and patients in need of orthotic bracing 527 Park Lane Waterloo, Iowa 319-233-8911 See our success stories at: www.clarkpo.com
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ag guide | going Green
A
Organic Farming
mong the key reasons consumers are buying more organic foods is the positive impact on the environment. They also may contain more anti-oxidants and fewer pesticide residues. modate the natural behavior of the animal. Organic livestock and poul-try may not be given antibiot-ics, hormones or medications, unless afflicted with an illness. They may, however, be vacci-nated against disease, which is generally controlled through preventative measures such as rotational grazing, balanced diet, sanitary living conditions and stress reduction.
FROM FARM TO TABLE
One way organic farmers have capitalized on their craft – especially operators of nent of the soil with various The British Journal of natural materials. Organic mat- smaller farms – is by monetizNutrition found that organic ing their products via direct crops contain 17 percent more ter can be built with compost anti-oxidants than non-organi- and cover crops. Weeds can be sale. Customers across America have taken notice of controlled without the use of cally grown crops, meaning the organic food market as more of the key agents crucial harmful chemicals through in fighting cancer and prevent various methods. The Organic they attempt to improve the Farming Research Foundation overall eating habits of themheart disease are preserved. selves and their family memidentifies these as viable Such reports are igniting bers. If you grow organic increases in product revenues, options: crop rotation, fruits, for example, you may mechanical tillage, handas organic farmers reported consid-er turning it into a jam, $3.12 billion in sales in 2012, weeding, mulches and flame jelly, cider or butter. You may weeding. up from $1.7 billion in 2007, need a certified kitchen for this according to the 2012 Census purpose, so check in with your of Agriculture released by the RAISING ORGANIC local health department. U.S. Department of Certified organic meat, Additionally, many organic Agriculture. dairy products and eggs must farmers also are able to offer be produced from animals that tourist-like attractions. Some GROWING ORGANIC are fed organic feed and options may be a general store For growers of organic allowed routine access to the with crafts and goods, a petting prod-ucts, it’s all about the soil. outdoors. Their living condizoo or a pumpkin patch with Farmers build healthy soils by tions must be up to par with corn mazes. nourishing the living compospecific standards that accom© Fotolia
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ag guide | global trends
Trends in Equipment W
hile not at the level of the 2011 boom, farm equipment buying in 2013 and 2014 has chugged along at a steady rate.
Rural Water –
An Untapped Value Tap into © Fotolia
The annual business outlook survey of the Association of Equipment Manufacturers showed a modest 2.8 percent increase for the 2014 buying season after a 2.8 percent boost in 2013. According to a report by Western Farm Press, the glob-al market for Agricultural Implements and Machinery is projected to reach $122.9 billion by 2017. The market is set to offset sluggish progress in the developed world with growth forecast for developing economies. Asia-Pacific represents the largest as well as the fastest growing regional market, while plowing and cultivation machinery is expected to reg-ister the fastest growth across all segments.So what’s behind the spending splurge? Farmers are investing their increase in net incomes in the premium products they
may have passed on in less profit-able seasons. Even in the face of expenses in other areas, farmers are opting for GPS autoguidance packages, remote vehicle monitoring systems and heavy duty trac-tors equipped with tracks in place of less-expensive wheeled vehicles.
machinery a valuable piece of the productivity puz-zle. Even if labor supply dips, large tractors and combines can prove critical cogs in a farmer’s system.
TRENDS
Farm Equipment’s 2014 Dealer Business Outlook & Trends survey shows a United TRACTORS States farming community Most of the spending leaning toward technolo-gyactivity is within the large guided equipment. Based on commercial farm equipment the percentage of dealers who sector. Large row-crop tracexpected unit volumes of tors, four-wheel-drive trac-tors, specific equipment to increase combines, sprayers, cotton in 2014, farm loaders took the harvesters and plant-ers and top spot at 94.7 per-cent of being scooped up as farmers dealers’ choice for increasing continue the trend of moving unit sales. GPS and precision to bigger equip-ment. The farming equipment also was in AEM reports that farm the mid-90s, while lawn and consolidation has required gar-den products, windrowers farmers to cover more acres in and round balers ranked highly. a season, which makes larger
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ag guide | farming law
The US Farm Bill E
very five or six years, farmers wait with great anticipation for a critical piece of legislation: The Agricultural Act.
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Known more simply as the U.S. Farm Bill, the Act is a comprehensive statute that covers most federal government policies related to agriculture in the United States. The Farm Bill is typically renewed every five years but was two years late in 2014.The bill is broken down into a variety of categories, including energy, commodi-ty programs, trade, nutrition, credit, rural development, crop insurance and disaster assistance. Originally creat-ed in 1933, it has grown to its current $956 billion itera-tion.
The federal government paid farmers to stop the pro-duction of seven main crops to reduce their supply and increase prices. The Agricultural Adjustment Act, which was later deemed unconstitu-tional by the Supreme Court, also contained several provi-sions related to conserva-tion, Dust Bowl support and surplus harvest storage regu-lations. Its basic features were included in later Agricultural Adjustment Acts and served as guidelines for future farm bills that have been regularly passed since 1965.
EARLY FARM BILLS
2014 HIGHLIGHTS
President Franklin D. Roosevelt’s 1933 Agricultural Adjustment Act provided subsidies to U.S. farmers in the midst of the Great Depression.
The main provision within the 2014 farm bill replaces direct crop payments with an insurance program and trims $8 billion from food stamps
over the next decade. Now, instead of receiving a regular annual government check, farmers will pay an insurance bill every year and will only receive support from that insurance in years when they take a loss, according to the USDA. Other key points highlighted by the United States Department of Agriculture are: • A 30 percent reduction in traditional commodities subsidies, and a 50 percent boost in funding for fruits, vegetables and organic programs; • An increase in funding for growers making the transition from conventional to organic farming (from $22 million to $57.5 million); and • Large bumps for programs that help food stamp recipients pay for fruits and vegetables.
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WARNING: The Polaris RANGER® can be hazardous to operate and is not intended for on-road use. Driver must be at least 16 years old with a valid driver’s license to operate. Passengers must be at least 12 years old. Drivers and passengers should always wear helmets, eye protection, and seat belts. Always use cab nets or doors (as quipped) Never engage in stunt driving, and avoid excessive speeds and sharp turns. Riding and alcohol/drugs don’t mix. All drivers should take a safety training course. Call 800-342-3764 for additional information. Check local laws before riding on trails. ©2017 Polaris Industries Inc.