AMERICAN SOD PRODUCERS  

ASSOCIATION 

1982 

MIDWINTER CONFERENCE PROCEEDINGS

MARCH 3-5, 1982 

ROYAL LAHAINA RESORT, MAUI, HAWAII

TABLE OF CONTENTS

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"STATISTICS!! BUT WHAT DO THEY MEAN?"  
Dennis Marx, ASPA Financial Consultant

"COSTS OF CREDIT & HOW TO CONTROL THEM" 

Michael H. Lyons II, Bank of Hawaii-Wailuku

"TURF IN HAWAII" 

Daniel T. Shigeta, University of Hawaii-Extension

"BONUS, PROFIT SHARING & INCENTIVES PLANS"  

Dennis Marx, ASPA Financial Consultant

"WHAT IS COMING IN COOL SEASON TURFGRASSES?"  

Doyle Jacklin, Jacklin Seed Company

"SURVIVAL OF THE FITTEST" 

Dale Kern, Seed Technology

"UNIVERSITY OF CALIFORNIA NEW ZOYSIA VARIETIES" 
Dr. V. B. Youngner, University of California

"WHAT IS AHEAD IN WARM SEASON TURFGRASSES?" 
Dr. James B. Beard, Texas A § M University

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"STATISTICS!! 

BUT WHAT DO THEY MEAN?"

By Dennis Marx, Ernst & Whinney, Omaha, NE

Because of today’s high interest rates and a weak economy, effective 
business management has become a necessity for business continuity. This 
involves generating important, timely financial data for the business, 
being able to analyze and understand the information, and taking manage­
ment actions which will improve weak or inefficient areas.

In this regard, ASPA engaged Ernst & Whinney to conduct a sod industry fi- 
nancial statistics survey. This report summarizes the results of Ernst & 
Whinney’s survey of North American sod producers for the years 1979 and 
1980. These results can be used for comparison to your own operation.
The report also describes how a break-even analysis can be used and how a 
simple calculation can demonstrate the Incredible cost of outstanding accounts 
receivable.

If a sod producer is to analyze financial data, he must look beyond just the 
numbers on the page. He must be able to analyze the meanings of percentages 
and ratios. By comparing these percentages to industry averages he can 
identify strengths and weaknesses.

To effectively use percentages and ratios, one must know how to compute them 
as well as how to interpret them. On an income statement, we generally com- 
pare various expenses to sales because many times they will have a direct 
relationship. For example, if we want to know what our labor cost percentage 
is, we would divide total labor expense by sales. In order to evaluate our 
relationship between labor costs and sales, we have to compare it to a standard 

such as an average for the industry or to our own business’s average for 
prior years. If the computed percentage is relatively too high, our pro­
ductivity is poor and action should be taken to improve it.

Following are the results of the income statements survey:

COMPOSITE SUMMARY OF  

INCOME STATEMENT PERCENTAGES

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SALES
Sod production sales
 Sod installation sales
SALES
 Other sales
SALES

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COST OF SALES
Beginning inventory
 Material purchases
COST OF 
SALES
 Labor and salaries
COST OF 
SALES
 Other costs
COST OF 
SALES
 Less: ending inventory
COST OF 
SALES

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GROSS PROFIT

General and Administrative (expenses)
Net other income (expenses)

NET INCOME (LOSS)

Industry
Average

Yours

86.93%
4.33
8.74
100.00%

11.83%
19.98
22.72
23.87
(13.75)
64.65%
35.35%
(21.28)
3.09
10.98%

%

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As you well know, most producers do not inventory their growing stock. 
The above inventory percentages include the costs of seed, fertilizer and 
chemicals. In addition, a sod inventory valuation method sometimes used 
is to record the inventory’s estimated sales price less cost to market. 
This gives the banker a better idea of the value of the business.

While percentages are used to evaluate the income statement, the balance sheet 
is evaluated in terms of both ratios and percentages. Some of the more important

balance sheet statistics are described below, as well as the averages for 
the sod industry which were obtained from the Ernst & Whinney survey.

COMPOSITE SUMMARY OF BALANCE SHEET RATIOS

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Current Assets to Current Liabilities
Total Liabilities to Equity
Inventory to Working Captial
Sales to Equity
Net Income to Equity
Sales to Inventory
Sales to Accounts Receivable
Sales to Total Assets

Current Assets to Current Liabilities:

Industry
Average
3.58 to 1
2.63 to 1
unknown
4.18 to 1

35.6%
unknown
unknown
1.2 to 1

Yours
__ to 1
__ to 1
%
__ to 1
%
__ to 1
__ to 1
__ to 1

Commonly referred to as the "current ratio", it is obtained by simple 
division. This ratio measures the liquid assets—cash, receivables, 
inventories, short-term investments—available to meet debts falling 
due within one year. It is considered to be a test of solvency. A 
current ratio of less than 2 to 1 is generally thought of as a 
possible symptom of financial stress. The results of the Ernst & 
Whinney Survey reflect an average current ratio of 3.58 to 1.

Total Liabilities to Equity:

This ratio shows the ownership the producer has in his assets. This 
ratio measures the amount the business is capitalized and indicates the 
extent to which the owner, or the creditors, is benefiting from 
the earnings on the assets. The Ernst & Whinney survey revealed a 
ratio of 2.63 to 1.

Inventory to Working Capital:

Derived by dividing inventory by the difference between current assets 
and current liabilities, this percentage is a measure of inventory balance. 
This calculation results in the share of working capital represented 
by inventory. As a general rule, when this percentage exceeds 80%, a 
business is showing signs of inventory imbalance. However, the 
level of this ratio may vary between industries. Because most sod 
producers responding to our survey do not inventory, we were not able to 
derive a meaningful ratio.

Sales to Equity:

This ratio, often referred to as the equity turnover ratio, is one 
indicator of how well invested capital is being put to work. It can 
also aid in measuring the profitability of an investment. Both extremes 
of this ratio, high (overwork) and low (underwork), are considered 
unhealthy. The former could reflect overuse of credit and the latter 
could suggest overcapitalization. An average ratio of 4.18 to 1 was 
computed for the sod industry.

Net Income to Equity:

This percentage shows a producer’s return on the amount he has invested 
in the business. The percentage can be used to compare this investment 
to alternative uses of investment capital. The sod industry’s average 
was 35.6%.

Sales to Inventory:

Sometimes referred to as the "stock to sales" ratio, this is another 
measure of the relative size of inventory. This ratio presents a hypo­

thetical inventory turnover figure. If inventories were being 
maintained on a LIFO costing basis, this ratio would tend to increase during 
inflationary periods. Too low a ratio could indicate excessive inventory, 
which could in turn suggest a problem with obsolescence. Again, because 
very few producers responding to the survey recorded inventory, we 
could not determine a meaningful ratio.

Sales to Accounts Receivable:

This ratio is one measure of the collectibility of receivables. In 
general, a higher ratio (net sales divided by accounts receivable) would 
reflect a more rapid collection of receivables, when taken in conjunction 
with the normal terms of sales. A ratio of 12 times, for example, would 
indicate receivables being "turned over" monthly. Since a number of 
producers did not indicate their accounts receivable, we could not develop 
an average ratio.

Sales to Total Assets:

Commonly referred to as the "asset turnover" ratio, this ratio is used 
to help indicate how efficiently a company utilizes its assets. Generally, 
a high turnover ratio indicates a company is effectively using its 
assets to generate sales; a low ratio suggests underutilization. This 
turnover ratio, however, does place an advantage on the use of old 
assets because of their relatively low book value. Therefore, other 
ratios should also be considered when evaluating the performance of a 
company in this area. The industry average was computed to be 1.2 to 1.

Break Even Analysis:
Profit is dependent on three basic factors: the product's selling
price; costs of production and distribution; and the volume of sales. Break even 
analysis uses these factors to help the business manager determine the right 
price for the product to insure a profit or the volume of sales necessary to 
break even.

Certain concepts need to be understood to apply the analysis. The
first is understanding the differences between fixed and variable costs. Fixed 
costs do not vary with production. They would include such items as mortgage 
and equipment lease payments. On the other hand, variable costs fluctuate 
directly with sales such as chemicals cost and production labor.

The first step in break even analysis is to categorize your costs. Fixed costs 
for one year would be stated as a total dollar amount which should not change 
significantly regardless of the sales volume. Variable costs should be 
stated as a per unit cost. This can be obtained by dividing the total 
variable costs for a total production period, which would be from soil 
preparation through harvest, by the number of units produced; i.e. rolls of sod. 
This gives us the cost of producing one roll of sod. If you compare this to 
the selling price for that roll of sod, you can determine the amount of profit 
per roll of sod or the variable profit. By dividing the variable profit into 
your total fixed costs, you have determined the amount of sod you must produce in 
a year to break even.

For example, assume a sod producer has fixed costs of $100,000, variable costs 
of $1.25 per roll, and sells his sod for $1.75 per roll. Our variable profit 

per roll is $.50 ($1.75 - $1.25). This gives us a breakeven point of
200,000 rolls of sod calculated by dividing the fixed costs of $100,000
by the $.50 variable profit per roll. This same analysis can also be used 
to develop a target selling price which is necessary to get a desired profit.

Costs of Accounts Receivables and Inventor:
What does it cost to have an old outstanding receivable or slow moving inven- 
tory items sitting on the shelves? Any producer who has borrowed money 
recently knows the interest rates. Assume a producer sells $40,000 worth of 
goods on credit per month with an average collection period of 60 days on 
accounts receivables. This gives him an average receivable balance of $80,000 
or two month's receivables. If that same producer has outstanding loans at a 
bank with the prime rate at 20%, those outstanding receivables are costing him 
$16,000 a year ($80,000 x 20%). If that same producer can speed up his col­
lection period to 30 days, he has cut his average receivables in half 
and saved $8,000. To make the same amount of money by increasing sales, the 
average producer would have to increase sales by $72,860. This was obtained 
by dividing the $8,000 savings by the average net income percentage of 10.98% 
obtained from the Ernst & Whinney survey.

Using percentages and ratios can greatly improve the performance of any business, 
however, they are no better than the financial data on which they are based. 
Therefore, it is important to look at the accuracy of the financial data 
being generated as well as if it is providing the manager with the things he 
needs to know. Good financial data is fundamental to the management of any 
business and Ernst & Whinney encourages producers to use their CPA to provide 
them with guidance in the use of generally accepted accounting principles and 
the interpretation of statistics.

COSTS OF CREDIT & HOW TO CONTROL THEM
Vice President & District Administrator 

Michael H. Lyons, II 

Bank of Hawaii 
P. O. Box 670 

Wailuku, Hawaii 96793

Interest rates are at historically high levels with credit costs 
becoming an increasingly major portion of any business' expenses. Controlling 
those costs requires constant attention and choosing your lending source is 
probably the most important part of such controls.

Establishing a close relationship with your banker is highly 

important if you want to cut your costs in credit borrowing. There are many 
sources of credit. A good banker will see that his customer gets the best 
package to suit his requirements. Also, he can help you with your deposit 
funds and other services.

I'll talk about how you can develop banking relationships to your 

advantage. What your banker looks for in you and what you should expect from 
him.

First you must locate a good banker. The kind of person you want is 
aggressive and business development oriented, someone who develops a lot of 
contacts, is forward looking, flexible, competitive, innovative and sincerely 
interested in your business. He will want to build the community through 
sound, productive investments. Also he should be big enough to take care of 
your credit needs or to properly arrange for them. It's not always easy to 
find this kind of person, but believe me, it's well worth the effort. A good 
banker knows how to move money around and this is what you want to get 
accomplished. Once you've found him, though be sure to respect his time.

You will also want a banker knowledgeable enough to locally control 
your credit needs. If he needs a participant due to the size of your credits, 
I strongly urge that you go through him to get acquainted with the participant 
bank. If you are able to get these bankers to visit your place of business, 
this will enhance the trust and confidence factor between a customer and his 
banker. The better you know each other, the better will be your relationship. 
Another good practice is get to know your banker's boss and maybe another loan 
officer. That way there will be more depth in your relationship.

A banker who extends credit is interested in the five C's of credit - 
character which is by far the most important, capital which means having 
sufficient wherewithal to have staying power, capacity which refers to ability 
to repay, collateral or security for the loan and conditions of the national 
and local economy. The banker is very interested in your ability to pay 
through the customers generating sufficient cash because he does not want to 
own collateral assets as a source of loan repayment.

Remember also that banking is a two-way street. The banker expects 
the customer to give all or substantially all of his deposit business to the 
bank. A banker must have deposits if he is to extend loans and it is only 
fair that there be reciprocal business. Customers sometimes feel it’s smart 
to put all their deposits in a brokerage house money market fund so that the 
money can be shipped out of the local community and into a big city like New 
York. Then, when they need credit, they rush to their local bank. At Bank 
of Hawaii we usually suggest that these people go back to the brokerage house 
and see what kind of credit they can get. Of course, it’s usually not much. 
That brings home to them the fact that it just isn’t smart to play this game. 
It may be attractive in the short run, but when the going is tough, having a 
good banking relationship is of extreme importance. This can only be built 
up over time. The businessman who gets what he wants at his bank has spent a 
lot of time building his reputation as a reliable person.

Your banker will want to see that you are organized, that you know 
your business, do financial planning and are capable of managing any future 
expansion. I strongly urge you to find a competent CPA to do your accounting 
and tax planning - a competent attorney to assist you with legal matters such 
as converting from a proprietorship to a corporation to take advantage of various 
tax considerations, retirement and pension plans, as well as some limiting of 
personal liability in the conduct of your business.

It’s very important that businessmen prepare forecasts and plot where 
they want to be one year from now, two or three years from now. Additionally, 
actual results should be compared periodically with the forecasts, perhaps 
every month or three months. All of this implies the necessity of maintaining 
a good set of books. It's extremely important for any businessman to keep 
track of where he’s been and where he's going. You can only do this by paying 
attention to your books. In my opinion it is pennywise and pound foolish to rely 
on inadequate accounting assistance in today’s complicated world.

Your banker will ask you a number of questions about your statements 
such as an aging of your accounts receivable and accounts payable, the quality 
of inventory, what is invested in fixed assets, terms of loans outstanding. 
He does this for two reasons: 1) He wants to understand your figures and
2)  He wants to know if you understand them. Good records and good knowledge 
of your business are impressive and will help your banking relationship.

In my opinion, with the economy and business conditions changing so 
rapidly, it is imperative that we all learn to work intelligently and not just 
work hard. Being a successful sod grower requires a high degree of business 
expertise and smart money management. This means being knowledgeable of 
current events and financial trends. We should read such magazines as Business 
Week, U. S. News, Time, Newsweek, Wall Street Journal and trade magazines for 
our own business. You probably say to yourself that you don’t have time for 
all that reading. You get up with the sun and go to bed late at night. 
However, thanks to modern technology there is a way that you can get a lot of 
this information by listening to tapes as you drive in your pickup truck. I 
am including a list of sources of taped and newsletter information which you 

can subscribe to for a relatively modest cost. It's very important that we 
all be well informed about what's going on so that we can use this information 
in making our business decisions. You should expect continued volatile 
business conditions. You must keep up-to-date to survive.

A good banker will help you with your credit needs by being know- 
ledgeable about sources of credit other than just bank loans. I am referring 
to such things as Production Credit Association, State Farm Loan Programs, 
Federal Land Bank and the Farmers Home Administration and Small Business 
Administration. These are among the more popular areas where farm credit can 
be obtained. A good banker will also be knowledgeable about the Farm Credit 
System. Other sources include insurance companies, farm supply dealers 
credit,and equipment leasing programs. Lawrence Warehouse System has a plan 
under which you can offer the bank your growing inventory as collateral. A 
proper packaging of a farm's financial needs is very important. Fixed assets 
should be funded with long term financing, if possible, at fixed rates or from 
owner's capital. Don't get into the habit of borrowing short term for long 
term purposes. It won't do you any good financially and bankers don't like 
to see frozen short term credit. That type of credit should be tied into your 
normal cycle of growing, selling, and turning your product into cash. Get in 
the habit of paying off your short term borrowings on or before maturity. If 
you are unable to do so, let your banker know about it ahead of time. Don't 
wait for him to call you. Don't surprise him because he may not be able to 
help you without advance notice.

As to using your deposits to your advantage, your banker can help 
you with that too. You'll need a checking account and if you are an unincor- 
porated sole proprietor, for example, you can probably get some interest on 
your checking account. You'll probably want a savings account where idle funds 
are left to accumulate and, if you can accumulate enough, look into buying 
longer term certificates to get a higher return. At a later date, you can use 
these as collateral to get a loan from your bank at 1% - 2% more in interest 
than you are paid. Your banker likes to see some accumulation of deposits 
with him. As I mentioned, this is a two-way street and banks today are vastly 
more interested in deposits than they are in loans although a good bank does 
not stop making sound loans in the local economy because they know that that 
it is very important to keep money circulating.

Another thing to keep in mind is the element of float in a deposit 

relationship. If you deposit a check in your local bank that's drawn on a 
distant bank, it's going to take your bank perhaps two or more days to collect 
the money - even though you are given immediate credit in your account. I 
would not advise playing it too close with your banker by consistently getting 
him to pay interest on float. He is unable to invest that money and you are 
in effect getting something for nothing. Your banker can show you how to cut 
down on float time by arranging for your receivables to wire funds to you, 
especially if it's a large amount. Your customers may be willing to do that 
if their relationship with you dictates that you be paid a little bit faster.

Another way your banker can help you is to set up a new relationship 

with a purchaser of your product. If that purchaser is not known to you, 
your banker can help you check him out. He may also be able to set up a 
relationship whereby the purchaser opens a letter of credit in your favor. 
This lets you know you’re going to get paid, assuming you deliver the goods 
according to the agreement. All of these things can save you time, money, 
and worries about collectibility.

Here are a few other areas that your banker undoubtedly can help 
you with. He can help you with credit analysis and counselling of your own 
business as well as that of some of your major customers. He will suggest 
leasing alternatives for the purchase of equipment versus borrowing. The 
bank may also very likely have record keeping or payroll accounting services, 
accounts receivable and accounts payable programs to help you with your paper- 
work. If he is active in farm lending, he will even know about farm management. 
Estate planning is important for farmers and often your banker can give you 
ideas in that regard. Electronic banking is becoming a reality. Within three 
or so years you will be able to use a personal computer to accomplish much of 
your banking. Ask about it.

Just as your primary purpose for being in business is to make a 

profit, the banker is in business to make a profit. It’s very important these 
days because growth depends on increases in capital and the major source of 
that will be retained earnings. In your shopping for a banker, don’t pick one 
who necessarily has the lowest rate because he may not be the best banker. 
Talk to him about his business. If he indicates that he’s going to continue 
to do business as usual, I would stay away from him because he probably won’t 
be in business very long. You want an innovative, creative, forward thinking 
person. Also, in your business I’m not sure if you give price concessions to 
customers, but if you do, I assume it’s for good reason. Remember that the 
banking business is just like any other. You may not necessarily get the best 
price right off the bat, it’s a question of building a relationship that’s 
meaningful on both sides and profitable to both sides. What I’m saying is, 
your banker is entitled to a fair return for his services. This could be a 
combination of loan interest, fees for services, and credit for deposit balances, 
but in any case you’ve got to have a decent understanding of what he expects. 
Look not only to your own interest but to your banker’s as well. Likewise, 
the relationship has got to be profitable for you. His help should assist you 
in making a profit. The banker wants you to do well because the health of his 
customers is good for both the community and the bank.

I want to talk a little about managing your business. Nowadays it’s 

much more complicated to run a business and getting more so - government 
regulations, the uncertain economic climate, continued high inflation, 
difficulty in finding good people and so forth. Times will probably continue 
to be volatile and challenging for years. There is a great deal of pressure 
on all business people and managing is crucial. One thing to concentrate 
on is how you use your time. You don’t have any to waste. I know all of 
you are aware of this and you should concentrate your efforts on working 
smarter, more efficiently, and planning ahead for changes. It’s important to have 
a game plan thought out in advance. None of us can operate out of our back 

pockets with an old envelope and a pencil any more. Show the banker your 
plans and ask for his advice. The farmer should choose a banker whom he 
believes is tuned to the '80's. Likewise, the banker is going to be looking 
for this in the farmer.

I would urge also you to spend more time developing relationships 

within your own business circles as well as the business circles of your 
community, such as your Chamber of Commerce. You'll be surprised at how 
much you can learn. Attending conventions like this is an excellent way to 
obtain new information. There are any number of similar meetings throughout 
our country and I am sure you can identify those which will be of assistance 
to you. I urge you to do as much as you can in this regard. Times are 
changing fast and you can't keep on top of it by operating in the same old 
ways. Your banker can help you find out what's available in seminars at 
home or perhaps somewhat further afield. You should keep your mind active 
and working. It will help you make better decisions and improve your business.

My discussions so far has not been too specific about the cost of 

borrowing money. Interest and fees charged on loans are based on several 
factors. You should know how a banker approaches pricing his inventory, 
which is money.

Here are the basic considerations:
1)  The amount borrowed. The work involved to put together a loan 

is about the same regardless of loan amount so larger loans 
may be priced lower than small loans.

2)  Term of the loan. Generally, a longer term loan will be priced 

higher than a short-term loan. There is more risk involved 
for a long-term loan.

3)  The bankers perception of the risk involved in granting the 

loan to a specific borrower will affect the rate charged. 
The more the risk the higher the rate.

4)  Collateral offered. Good, liquid collateral such as stocks 
should allow for a rate reduction off an unsecured loan rate.

5)  Overall banking relationship with the borrower is very important. 
Does he keep good deposit balances? The banker likes demand 
deposits, savings passbook deposits, savings certificate deposits 
and finally jumbo CD's (over $100,000) in that order. These 
range from low cost to higher cost funds. In establishing and 
maintaining a good banking relationship, taking care of your 
banker deposit wise is very important and could save you money
in the long run. He will be much more receptive to doing things 
for you, if you have an excellent deposit relationship. You are 
more likely to get better loan rates and faster service.

6) How much time and effort the banker has to spend servicing you 

may have an effect on the rate charged.

Ask your banker how he approaches pricing your loans. What 

considerations he feels are important. You may be able to help him assist 
you for instance by offering collateral in exchange for a lower rate or 
maybe an increase in deposit balances for a lower rate. In these times of 
volatile cost of funds you will probably experience more and more rates quoted 
on a floating basis. The base or prime rate plus X% to move up and down as 
that rate changes. This is fair to both borrower and bank. Some of you may 
experience more esoteric methods of loan pricing such as 110% of base rate 
with a good compensating balances. This method is more likely to be used in 
connection with larger lines of credit. Whatever method is used estimate 
what the dollar cost will be to you. Ask your banker to quote you more than 
one way of pricing the loan so you can choose what’s best for you. Over the 
next 2-3 years a fixed rate will probably be better for you, but you 
probably won’t get it.

One thing you should expect of your banker is a prompt response 

once he has all the information he needs. Occasionally, he may wish to ask 
some more questions once he has digested the facts surrounding your application. 
Don’t worry if he asks more questions as it should be for the purpose of doing 
a better job for you and you will probably get a better deal. If you are 
candid and prompt with him, you have a right to expect the same. If he asks 
for a few days to reply, give it to him. Remember he has plenty of work to 
do. Also, don't waste time comparing your loan rate with your friend’s rate - 
no two loan deals are the same and it’s like comparing sod to pineapples.
A good relationship with your local banker can be one of your 

prime assets. Take time to cultivate the relationship. A good banker will 
respond favorably because he knows that if you do well, with his help, he 
will do well also.

Thank you very much.

SOURCES OF INFO

TAPES
Sound of the Economy  

Various tapes on investment,  
management and selling 

The Complete Entrepreneurial  
Managers Library

Newstrack 

Executive Seminars 

Investment & Economie Advice  

PERIODICALS
Time, Newsweek, U. S. News & 
World Report, Wall Street Journal 
Agri Finance  

Farm Money Management  

Agricultural Letters  

Citibank 
399 Park Avenue 
New York City 10043 
Nightingale - Conant Corp  
3730 West Devon Avenue  
Chicago, Illinois 60659  
Phone 800-228-5454
Center for Entrepreneurial  
Management, Inc. 
311 Main St. 
Worcester, Mass. 01608 
Phone 617-755-0770
The Talking Magazine 
P. O. Box 224 
Englewood, Colorado 80151
Nation’s Business  
1615 H Street NW  
Washington D.C. 20062 
Wellington Financial Services 
Honolulu, Hawaii

All readily available.

Century Communications 
Suite 5520 Touchy Avenue  
Skokie, Illinois 60077
Box 67 
Minneapolis 55440
Federal Reserve Bank 
Box 834  
Chicago 60690

TURF IN HAWAI
I

 

By Dan Shigeta 
University of Hawaii-Extension

Commercial sod production in Hawaii is insignificant as an 

agricultural industry with only one sod farm located in Pearl City 
operated by Mr. Shigemura. Landscape contractors obtain vegetative 
propagation materials, mostly verticuts, from the sod farm, golf 
courses, and homeowners, where hybrid Bermudas, St. Augustine or 
Zoysia is used.

Nine-five percent of turf grown in Hawaii are Bermuda grasses. 

The common Bermuda are seeded for golf course fairways, parks, 
hotels and condominiums. Sprigs, of course are used for planting 
the hybrid Bermudas on golf course greens and some homes. Tifdwarf, 
Tifgreen and sun turf are popular. Other grasses grown in Hawaii 
are the zoysias, St. Augustine, Centipede and Hilo grass (paspalum 
dactylon -- considered weeds in Bermuda lawns). Hilo grass is the 
predominant turf in the Hilo area on the island of Hawaii and other 
heavy rainfall areas in the State. Paspalum vaginatum swartz, called 
seashore paspalum, is a very salt tolerant grass and is grown in 
highly saline soils, on beach frontages and sections of golf course 
fairways exposed to ocean spray and/or high salt water table. 
Kikuyu, introduced from tropical Africa as a pasture grass is being 
used by some as a lawn grass on Maui and is being tested as a golf 
fairway turf.

It the higher elevation locations on Maui where the termperature 

drops at times to cause frost formation, Bermudas are not at its 
happiest. Twelve perrenial ryegrasses and 8 cultivars of Kentucky 
bluegrass were grown for adaptability trials. BA 62-54 now named 
Victa showed least infection from rust. When fertilized at high 
rates, good, green growth were obtained but mowing was required 
twice a week.

New grasses are difficult to be introduced into Hawaii due to 

stringent quarantine laws. The grasses ace kept in a quarantine 
greenhouse for 1 year and the importer must pay all of the costs 
for the period. In addition, I understand that the light transmission 
for the greenhouse has been extremely poor for good growth.

Diseases of turf is not a problem in Hawaii. Basically, 

Bermudas are very tolerant to diseases. The fairly uniform climate 
reduces or do not place the grass under stress conditions. 
Occasionally, diseases do occur and are in the following order 
of frequency: Helminthosporium, Pythium cottony blight and 
rhizoctonia brown patch.

Insects do cause some damage to Hawaiian turf. The armyworm 

occasionally causes unsightly brown areas in turf. The grass 
webworm (smaller adult and larvae) are more frequent troublemakers. 
Diazinon applications easily overcomes this problem. The Rhodes 
grass scale are often a problem on the hybrid Bermudas and rarely 
on the common.

Weeds are the major problem in turf production. The more 
prevalent problems are the crabgrass, goosegrass, Hilo 
grass, kyllinga and the purple nutsedge. MSMA with repeated 
applications have provided satisfactory results for the above 
weeds except spurges where dicambra is recommended.

Slides were shown to illustrate the above discussion.
Slides were also shown to illustrate some exotic protea 

blossoms as well as gingers, heliconias and the scenic Hana coast.

"BONUS, PROFIT SHARING & INCENTIVES PLANS" 
by Dennis Marx, Ernst & Whinney, Omaha, Nebraska

Employee benefit plans serve a variety of purposes. They provide a form 
of employee compensation which is not taxable until some future date.
They can be used as incentives to affect employee current performance.
And they can provide employees with a means of building their personal 
estates. This article presents a broad overview of a number of different 
types of compensation plans.

The "hottest" new compensation plan was recently created by the Economic 
Recovery Tax Act of 1981. It is called an "incentive stock option." Under 
this type of plan an employee may be granted an option to purchase, at any 
time during the option period, his employer’s stock. The option price, or the 
price at which the stock may be purchased, must be equal to 100% of the stock’s 
"fair market value" at the date the option is granted. The employee may 
then exercise the option at any time during the option period and is not 
required to pay any tax on the gain until the stock is sold.

This "incentive stock option" therefore allows an employee to buy his employer’s 
stock at a price lower than its actual value at the time the option is exercised. 
This of course assumes the value of the stock goes up, rather than down during 
the option period. It can be used as an incentive for key employees by 
offering them a financial interest in the business at potentially a 
bargain price. Also, it is an incentive for employees to improve performance which 
should increase profits and the value of the stock.

An employee will be taxed at the favorable long-term capital gain tax 
rate if:

1.  He holds the stock for at least two years after the date of 
option grant and at least one year after the stock option is 
exercised.

2.  He must be an employee at all times from the date of option grant

to three months before the date of exercise.

If the employee fails to meet the holding period requirements, he will be 
taxed at ordinary income tax rates on the lesser of 1) the gain realized 
or 2) the difference between the option price and the stock value as of 
the exercise date.

If the employee fails to meet the employment period requirement, he will be 
taxed at ordinary income tax rates at the time of exercise.

To qualify as an incentive stock option, certain specific requirements must
be met:
1.  The plan must be approved by shareholders within 12 months of its adoption, 

and the option must be granted within 10 years of the plan's adoption or 
the date the plan was approved by shareholders, whichever is earlier.

2.  The plan must specify the total number of shares on which options can be 
granted, and, must specify the employees (or class of employees) who are- 
eligible. for options.

3.  In the case of options granted after 1980, the plan must limit the total 
fair market value of stock for which an employee may be granted options in

any calendar year to $100,000 plus any "unused limit carryover" from the
3 prior years. An unused limit carryover is one-half the excess of $100,000 
over the fair market value of stock for which options were granted during 
the calendar year. Therefore, assuming that no incentive options are granted 
to an employee in any calendar year before the actual date of grant, the 
maximum amount that an employee may be granted in any one year will be:

Year
1981
1982
1983
1984 and after

Maximum Amount

$100,000
150,000
200,000
250,000

4.  The option cannot have a term exceeding 10 years and it must be granted

at a price of at least 100% of fair market value (or a price determined in a 
good faith attempt to be at least 100% of fair market value) on the date of 
grant.

5.  The option must be exercisable only by the employee during his lifetime 

and not transferable except at death.

6.  The option cannot be exercisable while a previously granted incentive stock 
option (regardless of price) is outstanding. To avoid circumvention of this 
straight sequential exercise rule, an incentive stock option is treated as 
outstanding until the option is exercised in full or expires by the lapse of 
time.

7.  An option cannot be granted to an individual who owns more than 10% of the 

voting power of the employer, a parent, or a subsidiary, unless the term

of the option is not more than 5 years and the option price is at least
110% of the stock’s fair market value at the date of the grant.

Effective Date. The new rules generally apply to options exercised after 
1980 if the option was granted after 1975. For options granted after 1975 
and before 1981, the new rules will apply only if the employer so elects.
In addition, the election can be effective only with respect to the grant 
in any one calendar year of options on stock worth $50,000 (measured by the 
value at date of grant), and an aggregate of $200,000 for all pre-1981 
years.

For options outstanding on August 13, 1981 which do not meet the new rules, 
employers have until August 13, 1982 to make conforming amendments and to 
secure shareholder approval, if necessary, so as to qualify such options 
for the new treatment. Such amendments will not be treated as the grant of 
a new option.

Unfunded nonqualified deferred compensation plans can be used as current incentive 
and also to provide additional income at retirement. The fundamentals 
of a unfunded deferred compensation plan are that the: 

. The compensation is deferred to a specified future date; 
. No tax is payable on such compensation until it is actually or  

constructively received.

There are certain requirements which must be met in order to defer tax on the 
compensation. A definite written deferral arrangement should be formed before 
the income is earned with no payments made before the date or event specified 
in the agreement. In addition, no funds should be escrowed or placed in 
trust for the benefit of a particular employee to fund the deferred compensation.

Such a plan allows the employer to increase an employee's compensation without 
a current cash outlay. This can be beneficial to a high tax bracket employee 
if he can defer receipt of the compensation until retirement at which point 
he would probably be in a lower tax bracket.

A "Phantom" stock plan is another popular unfunded deferred compensation plan. 
Under this type of plan, bonuses, expressed in terms of stock, are 
credited to an employee's account. These bonuses are made payable at a later 
date. The stock is not in existence at any time up until distribution. The 
distribution may be paid in cash or in stock, and only then does the compensation 
becomes taxable.

The benefits of the "phantom" stock plan are a deferral of tax on the 
compensation, and an incentive to the employee since the value of the bonus 
depends upon the value of the company's stock. In theory, the better the 
employee’s performance, the higher the profits and the value of stock.

As you can see, there is a variety of different types of employee benefit plans.
Tn addition, to achieve the desired tax results, employee benefit plans must 
meet various technical requirements of the tax law. In all cases, an employer 
should acquire professional help in choosing and designing a employee benefit 
plan.

WHAT IS COMING IN COOL SEASON TURFGRASSES?
By Doyle Jacklin: Marketing Manager,  
Jacklin Seed Company, Post Falls, Idaho

Rill Erosion can start from the effects of a gentle rain on exposed 

This perspective is somewhat different from what you’ve been exposed to 
in the past and I hope it will serve to create new ideas in relation to the 
use of cool season grasses, whether they are seeded or sodded.
Cool season grasses-- our present varieties are so beautiful, why in the 
world would we want anything different? Sod growers know how to grow the 
cool season grasses (mainly Kentucky Bluegrass blends) so why change? Seed 
merchants and sod growers both know how to seed or sod cool season grasses,-- 
do we really need new ones to make things more difficult? Obviously the 
answer has to be yes-- whether because of disease susceptibility, seed pro­
duction problems, or specific environmental stress situations, there must 
always be change in the development of new cool season grasses. Let's digress 
a minute and consider just what are the universal uses for grass.
slopes. Gullies form, cutting deeper and deeper. Cool season grass species 
adapted to wetter and lower ph conditions are solving the soil erosion pro- 
blem. Wind removes valuable top soil and destroys plants by depositing soil 
on growing plants. New cool season grasses adapted to dry conditions are 
helping to reclaim wind blown areas. Forest fires destroy and expose pre- 
viously covered and protected soil to the ravages of wind and water erosion. 
Man creates the same destruction as fire when he overharvests the timber 
stands. Grass, once again, stabilizes erosion. Often sod is used in draws 
and on hilltops. Road Transportation causes a great deal of erosion. New 
cool grass varieties-- better adapted to poor roadside soil conditions, 
able to withstand dry stress periods, and more tolerant to wintertime salt 
applications, are available. Sod growers are going to have to learn how to 
grow a new generation of grasses specifically for roadside stabilization. 
Devasted soils, caused by mining, can be reclaimed through the use of special 
grasses, which will tolerate widely varying ph levels, mineral content, and 
moisture holding capacity.
Now that we've seen some of the differnt uses for cool season grasses, 
let's take a closer look at some of the specific varieties and even evaluate 
whether they can be grown by sod growers. Arizona fescue, obviously a native 
grass and unique to the fine fescue category, is characterized by its bunchy 
growth habit' It is a non-aggressive, slow growing variety. This means if 
it's going to be grown for sod, it must be combined with a non-aggressive sod 
forming Bluegrass variety in order to develop a liftable sod. The use of 
netting may be advisable when producing sod in the warmer, dry areas of the 
Southeast where there may be a demand for this grass. Covar Hard fescue was 
selected from an arid region of the Pacific Northwest and is a very short, slow 
growing, bunch-type fescue which can be an ideal ingredient in sod for lawns in 
water-short areas such as Aurora, Colorado, and other parts of the West. In 
mixtures, covar will have to be the primary ingredient by weight and percentage, 
with other sod forming Bluegrasses or turf-type perennial ryegrass included for 
better liftability. Lemmons Alkali grass is excellent for areas that sound 
just like its name-- alkaline soils. This means for dry potholes, and higher 
ph soils in the dry midwest, or the West. Because it is not as aggressive as 
most Bluegrasses, it will have to be a major ingredient in any mixture grown 
for sod, and netting will be necessary for good liftability.
as a sod which then must be lifted and cut into plugs for planting on sand 

Goshen Prairie Sandreed can produce seed, however, it can better be grown 

dunes, dry sandy desert, or other similar soils. One of the more manageable 
methods of handling may be to cut the sod strips into smaller squares, trans- 
plant these squares into plastic trays for transportation to the planting 
site, and planting from the trays. Alkali Scanton is also a selection for 
possible use on alkaline or calcified soils. It can be included in mixtures 
planted for sod production, but must be included with a non-aggressive sod 
forming grass such as a more open, slower growing, Kentucky Bluegrass, or 
slower growing turf-type perennial Ryegrass.
Tundra Bluegrass is a very unusual plant. It is very, very short, ex- 
tremely slow growing, and adapted to higher elevations while able to withstand 
extremely cold temperatures and low rainfall. The area for its possible use 
may be limited. However, it is something that may have great value from a 
genetic standpoint, in breeding new varieties of Kentucky Bluegrass incorpo- 
rating the low and slow growth characteristics while providing adaptability at 
lower elevations.
Red Top is a perennial sod forming grass which grows extremely well on 
moist, acid soils. It has been around for many years and was originally used 
as a primary grass for home lawn and turf purposes. It has good value, not 
only as a turf grass mixture component, but for use as a forage grass on high 
acid soils and revegetation of acid coal soils. The newly certified variety, 
by the name of Streaker, has Just received registration from the crop and 
soil science society, and will be an ideal candidate for inclusion in seed mix- 
tures grown for sod production intended for use in wet, bottomland areas.
Reuben's Canada Bluegrass is a perennial non-aggressive sod-former ideally 
suited for minimum moisture requirements of 35cm. It is an excellent species 
for poor disturbed and derelict soils where it will withstand low fertility 
and somewhat acid soils This variety was patented as a new invention, and 
will be a much sought after grass for reclamation and environmental use. 
Reuben's, because of its non-aggressive growth habit, and somewhat open turf, 
can be used with some of the other non-aggressive grasses mentioned earlier 
such as Alkali Scanton, Goshen Prairie Sandreed, and the bunchy-type hard 
fescues. But, homeowners and sod growers will have to accept the fact that 
the type of sod produced from such mixtures is not going to look like our 
present Kentucky Bluegrass sods. The color is going to be lighter, the 
density is going to be thinner, and the growth will be somewhat more stemmy; 
however, the sod will be able to withstand less maintenance. In general, 
you give up something in one area to gain in another. Meadow Foxtail has 
good promise for use as a cool season grass adapted to wetlands and for shore- 
line erosion control. New varieties are being developed which are very cold 
tolerant, and may be candidates for inclusion in certain sod seed mixtures. 
It is, however, a very coarse leaved grass and management practices if grown 
for sod will have to be developed. Tioga Deer Tongue is from the North- 
eastern area of New York/New Jersey. Deer Tongue is a very adaptable grass for 
extremely poor soils and is quite palatable to deer and other wild game. It is 
characterized by its open growth, broad leaves, and exposed crown. Seed pro- 
duction problems have apparently been solved and this variety is being used 
extensively on coal mine spoils. It is quite possible that Deer Tongue can 
be produced by sod growers for use in revegetating native mine spoils which 
have to be sodded, rather than seeded, in order to provide immediate protection 
from erosion.
These varietal developments summarized here are only a few of the many 
cool season grass varieties being researched for a wide number of uses. The 
full text of my comments are in the May/June issue of the ASPA Turf News 
magazine.

Survival of the Fittest

Dale Kern, President, Seed Technology  

Maysville, Ohio

Our planet earth is one gigantic battlefield with every living 
organism competing for survival. There is constant competition be- 
tween members of the different families, genera and species and even 
members of the same species or varieties.

I would like to explore briefly three major areas of survival. 
First; a few of the unique characteristics which make certain crop 
and weeds undesirable and help them to survive in your turf. Sec- 
ond; I would like to suggest some steps you can take to prevent the 
undesirables being introduced into your fields. Third; to share 
with you the results of our latest research and how it can be util-
ized by a computer to help you select the cleanest, highest quality, 
and fastest growing turf seed at the Lowest possible cost.

Perennial dicots such as dock, plantain, buckhorn, dandelion 
and chicory all have unsightly broad leaves with deep tap roots 3 
or more feet Long which can be the source of new plants for years 
to come, even after the original plant is removed with the sod. 
Black medic, purslane and oxalis are capable of prostrate growth 
forming areas of off type and color. Chickweed, clover and ground 
ivy spread by rooting at the nodes suffocating the desirable grasses. 
Moot of these undesirable contaminants can be controlled with a 
selective herbicide. Additional expense is entailed.

Many of the most undesirable contaminants are monocots (grass). 
Moot of which have course broad Leaves forming a clung) or bunch in 
your sod and are difficult or impossible to control with a selective 
herbicide. Dallisgrass, foxtails, barnyardgrass, bromegrass, timothy 
and wheatgrasses are all examples. In addition to forming clumps, 
tall fescue and switchgrass have heavy fibrous root systems 5 to 12 
feet Long enabling them to flourish even under dry conditions. Red- 
top, quackgrass and Canada bluegrass survive and spread by under- 
ground stems called "rhizomes". Bermudagrass and some bentgrasses 
spread by "stolons" on top of the ground forming dense patches. 
Poa annua and nimblewill are off color during the growing season 
and form brown patches later in the season.

Often professional turf growers rely on the Law, Blue Tag Cert- 
ified or the more expensive Certified Sod Quality standards to pre- 
vent the presence of undesirable contaminants in their seed. Many 
are amazed when they learn many undesirable contaminants are allowed 
even in Sod Quality seed. In the September and October issues of 
Golf Course Management, there appeared drawings of 12 monocots and 
12 discots; courtesy of O. M. Scott Company, which are most undesir- 
able in turf. You might be surprised to Learn how few of these un- 
desirables are prohibited by law or in Blue Tag or Sod Quality Cert- 
ified seed. Let's take a look.

empty table cell

MONOCOTS
Redtop
Poa Annua
MONOCOTS 
Crabgrass
MONOCOTS 
MONOCOTS 
Witchgrass
MONOCOTS 
Nimblewill
Tall Fescue
MONOCOTS 
Dallisgrass
MONOCOTS 
Foxtail Barley
MONOCOTS 
MONOCOTS 
Barnyardgrass
MONOCOTS 
Goosegrass
Timothy
MONOCOTS 
MONOCOTS 
Quackgrass

DICOTS

Black Medic
No
DICOTS 
Common Chickweed
No
Clover
DICOTS 
No
DICOTS 
Plantain
No
DICOTS 
Purslane
No
Curly Dock
DICOTS 
No
Dandelion
DICOTS 
No
Oxalis
DICOTS 
No
DICOTS 
Chicory
No
DICOTS 
Buckhorn
No
Ground Ivy
DICOTS 
No
Mouse-ear Chickweed No
DICOTS 

By 
Law
No
No
No
No
No
No
No
No
No
No
No
Yes

PROHIBITED CONTAMINANTS

In Washington & Oregon

   

In Washington & Oregon  
Sod Quality

Certified

No
No
No
No
No
No
No
No
No
No
No
Yes
No
No
No
No
No
No
No
No
No
No
No
No

No
Yes
Yes
No
No
Yes
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
No
No
Yes
No
Yes

Seed 

Technology

U
U
C
C
U
U
U
U
U
U
U
U
C
C
C
C
C
C
C
C
C
C
C
C

Seed Technology has no prohibitive powers and lists all contaminants 
into 3 groups; U-uncontrollable, C-usually controllable with a 
selective herbicide and NP-no problem.

The quantity of seed to be examined for each of the unwanted 
contaminants is very important. By law, in Certified Blue Tag and 
Sod Quality; only 1 gram(a teaspoonful) would be examined for the 
presence of all the not prohibited seed listed above. Ten grams 
(1/8 cupful) would be examined for quackgrass only by law and in 
BT Certified seed. Twenty five grams (1/4 cupful) of bluegrass would
be checked looking for just the prohibited seed; Poa annua is a 
noteable exception. It being very similar in appearance to other
bluegrasses, magnification must be used to detect its presence now 
making the test a slow tedious process. In BT Certified only 1 gram 
and in Sod Quality only 10 grams is examined for Poa annua. If no 
Poa annua seed is found in this 1/4 cup examination, the entire lot, 
very often several thousand pounds, will be sold to you as Sod Qual- 
ity and Poa annua free. It becomes increasingly difficult to justify 
the premium price charged for Certified Sod Quality seed.

TO GREATLY REDUCE THE CHANCE OF GETTING UNDESIRABLE CONTAMINANTS 
IN YOUR SEED, I WOULD STRONGLY SUGGEST TWO THINGS:

1.  Don't rely on the law or certification to provide problem 
free seed. Buy your seed from a quality firm which offers 
seed free of ALL undesirable contaminants.

2.  POA ANNUA and BENTGRASS FREE seed should be based on more 
than a 10 gram search. Many quality firms have 25 to 150 
grams checked for all contaminants including POA ANNUA. The 
more seed examined, the less the chance of buying problems.
For years Seed Technology has known of other factors which 
can better predict plant survival in your fields. However, it was 
impossible to physically assimilate and express it in a usable 
manner. A computer is now using the following factors to determine 
the quality and comparative cost for each lot of seed.

1.  Purity-- Germination-- TZ-- All Contaminants.
2.  Double Florets - 2 or 3 hulls stuck together. Moot of these 

hulls are empty, no seed inside, lots vary from .5% to 20%.
3.  Seed Count - number of seeds per pound. For one elite var- 

iety we found a high of 1,112,658/lb and a low of 825,774/lb 
or a 34.7% variation between the two lots.

4.  Dormancy - seeds that are alive but physiologically immature 

and won't grow. In the fall, lots varied from 2% to 64%.

5.  Plant Survival - the germination is based on 28 days of ideal 
laboratory conditions. The conditions in your fields are 
considerably more severe. Through research we know that lots 
germinating 88% in the laboratory have survival rates varying 
from 48% to 70% when planted in the field.
Seed Technology command two lots of an slits variety with 
purities of 97.94% and 98.06% and both germinated 88%. The above 
factors for both lots were fed into the computer to compute the 
pounds per acre required to give 3, 6, or 9 plants per sq. inch of 
soil. For 3 plants, lot one required 42 lbs at $2.00/lb x 100 
acres = $8,400. The second lot required only 31 lbs at a cost of 
$6,200. The difference is $2,200 or $22 per acre for an equal 
number of plants per sq. inch of your soil.
IN SUMMARY: It is important that you know of ALL the contaminants 
present in a 25 to 150 gram examination. Then use the computer to 
select the very best seed at the lowest possible cost.

IT COULD MEAN YOUR SURVIVAL

UNIVERSITY OF CALIFORNIA NEW ZOYSIA VARIETIES

V. B. Youngner  

Department of Botany and Plant Sciences,  
University of California, Riverside, CA 92521

Despite some highly desirable characteristics such as tolerance of heat, 
drought, heavy use and salinity, Zoysia has long been the stepchild of turf- 
grasses in the United States. Although Meyer Zoysia has had a degree of popu- 
larity especially in the transition zone where its winter hardiness and disease 
tolerance are valuable, it has never succeeded in many other areas such as 
California. Its lack of widespread popularity may be attributed largely to 
its long dormant period and extreme slowness in establishment. Emerald Zoysia 
has been somewhat more acceptable in California and parts of the South because 
it has a finer texture, better cool weather color and a slightly faster estab- 
lishment rate. No seed propagated strains are available at this time. 

In recent years, the need for water conservation has received wide recogni- 
tion in the turfgrass industry and elsewhere. Many years ago several of us in 
the University of California concluded that one of the most important future 
needs of the turfgrass industry would be grasses that were drought tolerant 
and highly efficient users of water. After evaluating the potential of all 
the better turf species in this respect, we chose Zoysia and tall fescue in 
addition to bermudagrass with which we were already working, as the most 
promising candidates for improvement. Zoysiagrasses are especially efficient 
in their energy requirements as well as water use.

A series of breeding studies were then initiated with these grasses. Two 
standard breeding methods were utilized for the Zoysia work; straight seedling 
selection and hybridization between selected individuals that had been imbred 
for several generations. In the later method, during the imbreeding process, 
seedlings were selected for one or more desirable characteristics such as 
winter color and establishment rate. These selections were then crossed in 
various combinations in an attempt to bring as many good characteristics as 
possible together in a single individual. During the course of these studies, 
thousands of individual plants were evaluated.

We have now reduced our selections to 11 superior vegetatively propagated 

strains. These are in the final stages of evaluation at this time with a 
number of California sod producers as well as various research institutions 
cooperating. We anticipate that we will be making our final selections at the 
end of the 1982 summer. These strains range from fine textured Matrella types 
to coarser Japonica types. One or more of each type may be released - each 
release serving a special purpose or having specific adaptations.

One strain that is almost certain to be released is currently being tested 
as UCR No. 1. It is a Japonica type resembling Meyer in texture. However, it 
has a rate of establishment several times faster than Meyer - more rapid than 
that of any Zoysia we have ever observed. It also has better cool-season color 
than Meyer, although it is not as good in that respect as some of our Matrella 

types. Disease has never been a problem on Zoysia in California so we have 
little disease information so far on our material. However, Bill Daniel at 
Purdue has reported that UCR No. 1 was the only strain without rust in his 
trials last summer. Zoysia rust is a problem in some parts of the United 
States although it is seldom encountered in California.

We cannot say how widely adapted any of these strains may be. This 

information will be available only after a number of years of use. We think, 
at this time, that UCR No. 1 might be adapted throughout most of the area where 
zoysiagrasses are presently used. However, it may not have the cold tolerance 
of Meyer. It should be valuable wherever an attractive but rugged wear resis- 
tant turf is needed. Its maintenance requirements should be moderately low.

The adaptation zone of the matrella types may be restricted to the milder 
climate areas of the South and Southwest. They should be especially good for 
general lawn use where their fine texture and outstanding cool-season color 
will be important. All strains are drought resistant and efficient users of 
water.

Zoysiagrasses thrive on heat but perform poorly in areas with consistently 
cool day and night temperatures such as the central and north coast of Califor- 
nia. However, such places are ideal for cool-season grasses, and have no real 
need for Zoysia.

The California Zoysia strains are all vegetatively propagated. Our studies 
have shown that stolonizing is the most rapid method of establishment short of 
solid sodding. Plugging should be used only for off-season planting when 
survival of stolons may be reduced.

We are presently breeding for a seed propagated strain that would be superior 

to the common seeded material now available. I am sure improvement will be 
possible but a number of years of additional work will be required.

WHAT IS AHEAD TN WARM SEASON TURFGRASSES?

by 

Department of Soil and Crop Sciences  

Dr. James B. Beard 
Texas A&M University  
College Station, Texas

The past decade and a half has been highlighted by the release of more 
than a hundred different cool season turfgrass cultivars. Unfortunately, just 
the opposite is the case for the warm season turfgrass cultivars. In fact, 
the only turf type warm season turfgrass cultivar released during the 1970’s 
was Floratam. To further emphasize the point, there has been only one zoysia- 
grass cultivar released since 1955, only one St. Augustinegrass cultivar since 
1957, and no bermudagrass cultivars since 1967. The critical need for 
improved warm season turfgrass cultivars is obvious.

With this background it is pleasing to note that four new cultivars have 
already been released during 1980 and 81 with approximately a dozen more to be 
released prior to 1985. Surely this represents a major step forward for turf- 
grass culture, and especially for the commercial sod production industry in 
the sun belt states. Thus, it is appropriate to review the current warm 
season turf grass cultivar status and take a brief glimpse of what can be 
expected in the future. The characteristics described in the accompanying 
tables of cultivar descriptions are based on rankings (excellent-good-medium- 
fair-poor-very poor) which are based solely on comparisons among cultivars 
within that species. The comprehensiveness of the individual descriptions 
varies from cultivar to cultivar with a considerable portion of the information 
being given by the specific breeder of the most recently released cultivar. 
A more comprehensive description of these cultivars will become available as 
the evaluation of these turfgrass cultivars evolves at the State Agricultural 
Experiment Station across the southern region.
New St. Augustinegrass Cultivars. The two new St. Augustinegrass cultivars 
released in the early 1980's are Raleigh and Seville (Table 1). Both possess 
SAD virus resistance, but lack chinch bug resistance. Further, both have 
improved cold hardiness compared to Floratam and Floratine. Future planned 
releases include three cultivars from the Texas AES in 1982 and one from 
Florida AES in 1983.
New Bermudagrass Cultivars. A review of the bermudagrass cultivars summarized 
in Table 2 reveals that Vamont was released in 1980 and Tifway II in 1981, 
with Midmo scheduled for release in 1982. They key with descriptive features 
of these three new cultivars include (a) improved cold hairiness, (b) use on 
lawns, and (c) in the case of the first two, use of sports fields and fairways 
as well. Further, Midmo and Vamont are being released for specific regional 
adaptations. Whether these newly released cultivars will possess more wide 
spread adaptation use across the southern United States remains to be seen.

Concerning possible future releases, Kansas AES anticipates two additional 
bermudagrass cultivars to be released in 1983, while Florida AES also is 
scheduled to release an improved minimal maintenance bermudagrass cultivar in 
1983.
New Zoysiagrass Cultivars. There have been no new zoysiagrass cultivars 
released since 1963 (Table 3). Meyer and Emerald remain the standards at this 
point in time. Recently a seeded zoysiagrass selection, known as Korean 
Common, has become available. It has a medium dark green color, medium coarse 
texture, and medium low density. The most unique attribute is that it can be 
established from seed and possesses a superior establishment rate compared to 
any of the zoysiagrasses which have been used in the United States in the 
past. The problem is it has only been tested over a two year period at a few 
limited locations in the United States. Thus, it has not been sufficiently 
evaluated in terms of its adaptation and use potential throughout the sun belt 
region. Nevertheless, the development of a technique to achieve rapid estab- 
lishment of zoysiagrasses from seed which was developed by the Korean turfgrass 
researchers has great promise for future application in the United States.

In terms of future releases, one is tentatively scheduled from the USDA 
(Beltsville) in 1982, several from California AES, and one from Kansas AES in 
1983.
New Tall Fescue Cultivars. A major breakthrough in the development of turf- 
type tall fescue cultivars occurred with the introduction of Rebel and subse- 
quent to that six other new turf-type tall fescues (Table 4). As a result of 
this new breeding effort there will be an even greater increase in the interest 
of tall fescue in the transition zone. A number of sod producers may become 
involved in producing both tall fescue and zoysiagrass sod in the middle 
transitional latitudes of the United States. For the more southerly areas, 
research over the past six years at Texas A&M University has demonstrated that 
tall fescue can be a valuable shade grass in-humid regions, particularly if 
irrigation is practiced. Anticipated seed supplies of these improved tall 
fescue cultivars will be of limited supply for the next few years.
Turfgrass Growth Investigations. Discovery of the spring root dieback 
phenomenon at Texas A&M University has resulted in major changes in the 
philosophy of spring turfgrass cultural practices. It is quite likely that a 
similar situation will evolve in commercial sod production of warm season 
turfgrass species. Research during the next several years may lead to a 
change in spring cultural practices including delayed spring nitrogen fertili- 
zation, higher mowing heights, and increased irrigation practices during this 
critical two to three week time period following initial spring greenup.

Growth control investigations have shown that the new growth regulator 
EL-500, is one of the more promising growth regulators to come along in terms 
of effectiveness on warm season turfgrass species. Furthermore, it not only 
reduces the frequency of mowing but also lowers the water use rate in the 
order of 25 to 45%. This means that once a sod has been fully established but 
the markets have not developed, it might be possible to lower the costs for 
mowing and irrigation through the use of growth regulators. Research during 

the next few years should confirm whether this is a viable alternative.
New Developments in Pest Management. Bermudagrass encroachment in St. August- 
inegrass sod fields is a continuing problem. Based on research at Texas A&M 
University, asulam has proven effective in suppressing bermudagrass where a 
directed spray is utilized. This is a more difficult and costly application 
strategy. Subsequent studies during the past growing season have resulted in 
the identification of a new experimental compound which shows promise for 
bermudagrass suppression in St. Augustinegrass through a broadcast application. 
This new compound will be evaluated in much greater detail at TAMU in 1982 
but is only available in very limited quantities and certainly can not be 
obtained for large scale test applications at this time.

Dallisgrass remains a substantial weed problem. Although several 

potential new herbicides for dallisgrass control have been identified, none 
of these newer materials has shown promise for control by simply applying a 
single application. The problem of crabgrass control in St. Augustinegrass 
has been alleviated by the development of a 24C label for use of Asulam in 
selected states.

In the disease area, the most recently introduced compound is triadimefon 

(Bayleton) which has good activity on brown patch, dollar spot, Fusarium 
blight, and the snow molds. An earlier released compound is iprodione 
(Chipco 26019) which has good activity on dollar spot, Fusarium blight, 
Helminthosporium diseases, and the snow molds. Both are welcome additions to 
the available fungicides for use in turfgrass disease control.

Just recently two new insecticides have become commercially available 
which are very valuable additions to a limited array of insecticides for use 
on turfgrass insect problems. One material is bendiocarb (Turcam) which is 
labeled for use on chinch bug, mole cricket, sod webworm, and white grub. 
The second is isofenphos (Oftanol) which is labeled for use in the control of 
billbug, chinch bug, sod webworm, turfgrass weevil, and white grubs, in 
selected states. Additional pests will be added to these labels along with an 
expansion to more states as research results evolve.

FUTURE PROJECTIONS

Projecting into the future is a risky business but will be attempted:

1.  Reduced production time by (a) chemical bermudagrass suppression in St. 

Augustinegrass sod production, and (b) development of new zoysiagrass 
cultivars with significantly more rapid establishment.

2.  Reduced production inputs and costs through the development of cultivars 

with lower water, nitrogen, and mowing requirements.

3.  Substantial increase in the amount of zoysiagrass and centipedegrass sod 

production within five years.

4. Movement away from a monolithic market strategy to a diverse range of 
cultivars being grown for specific climatic regions and uses.
These developments will be the result of the most active efforts in warm 
season turfgrass sod production that have ever existed. The turfgrass 
researchers of the sunbelt look forward to working cooperatively with the sod 
industry in seeking funds to maximize these research efforts.

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