Publication of Michigan Farm Bureau ---~ •• April 15. 1991 Analyzing Cost Effective Tillage Decisions T~ "ommt)ljll) n\k:tUAllnlt u~I prK:C\ rTW) of fud tw\C laIld lu...cr "ou lou~ln~ IJre emer gen\. e produ,," ~ru~er .. I~o or lhree dollar .. mon: per ~re mol) (; 0 ..1 ., w.y\ 1o \.ul b6k:k. tJfl ull .. ~c to "onrrol dun PPI hcrhl~ Ide" "~n:e' \br'\h.al \te \:Ol"l:\ Rut itlt e\:onoml\h .ad .. '\c ltul you (.l.lnlt'r\. pt'ufe'''''f ,"\, 'Aced "'Ien",,, .il the pe.-:tl oUlthc U"t "'~lnlt\ \.iIfC'fulh l nl\en 1\ of 11I1001' You rTWy nuc be "' .. Inlt "-, m~h ,,-, \OU 8\ danlln.lllng "Cn.lan 1I11.. ~c p.t''-C', \h,. than". "'y' Or f.M1 f ulter, profe''4)f or (,I ..me1\ , .... ' Ih .. l ~rt)'A('r' mol) ~C:I f.ann mAlWJCmcnl ill thc l na..cr"ll) of "'tm 'lr ..llh~.lI"lfI of nulncnh 'lkh .., roo' nc make moflC'\ h\ tllhe" , '-l\ .. ltlft'n 80\k- . .1g ('n~lO(,cf.1l ImproVlnar ... eat ,"oolml .and nurnenl cf the l nI\er"'ll, of 11I1001' If )ou'ft' ~omf.! rKIC~} ~h('m.at"e to hlloaare f1l.l) 10 10 ~ul (')\II a 1.II.lge p 1" 10 ' .... (' fuel '-0'1'" \:ITa.w Input UK" and ~ ITa.....e drl\. 1(,",- \ m.. ~e ..Uft' lhal II 1..0'1 .. lnp lh.u \OU'IT bee au\e ...eed lontrol .nd nutrient u'mg In Ill(orroralC' fc.-nill/Cf"\ and pn:plaor .".Ilab"") mAY'urfer herh." Ide .., 8o.k ~Id Ih.lO one pol'" 'Auh .. dl,l or held c..uJU ... l1Ol. Doll.1 .u....o \how .. that runn en! .lI1 J 8 - t oal SIrK:(' fllO'l fenillno" and her"" Ide ... .lIT Bode .11\0 "'ug~e"''''' rh.11 ~m ...c" 10(\" (or hUI not .., 'Acll .1, l'AO ~ .. 'C:' \"I)" Bode flcld culu\.ltor C~l\ 71 C.cnl\ per ac..re in petroi('um ha\C\t. II" fl(l ...e\. ITI thoal t~ ~ w.n'" 10 u\,(' "omhl~II~'ln h'lOl .. 10 'A("ln. 10 for lx'l n.- ...Ull' ....ombuuuon 1001, mu.'l be fuel comp.u'Cd to .. ltlp With a 24-fool un- prKe\ aIT e'peded 10 r1\C .11'0. ~\'" herhl\.IJe .... "" h ...... dl ,lo ~J.n~ 'A Ilh .. held opt'ralcd oilhlllh !lround ...peed .. 10 \{lll 'A.m dcm dl'k ol1 a to'l O. 64 cent .. for fuel. Fullcr Ilwc makc' II e"en fll(W'e Imponanl ,ulll\alor ,cdwn E\p: M~ig~ Farm Bureau President, Jack Laurie. Cass City; VICe President Wayne Wood, Marlette; Ad~lmstratlV9 ~Irector, Charles Burkett; Treasuref and Chief Financial Officer. Tom Parker; Secretary, Wilham S. Wilkinson. Directors: District " Marlin Outman, Constantine; District 2, Blaine VanSickle MarshaO' District 3 Diane Homing, M~ter.; District 4, T?m Guthrie •.De.lton; ~ 5, Mark Smuts, Charlotte; District 6, Wayne Wood, Marlene; ~IS.trict 7, Larry Snider, Halt; District 8, Richard Leach, Saginaw; District 9, Joshua Wunsch, Traverse C~; District 10, Margaret ~artes. W~ Branch; District ". Robert Wahmholf. Baraga. At-Large: Douglas DarllOg, Maybee; Jack Launa, Cass City; Faye Adam,Snovef; Jan Vosburg, Climax. Promotion and Education. Holly Porter. Manchester. Young Farmers. Sleven Gonyea, Spruce. Michigan Farln NelNs ITOL April 15, 1991 o o ::D Z m ::D Fast-Track Trade Negotiating Authority MI-OSHA Farm Bureau has joined with 50 other agricultural groups in sending a letter to all members Legislation has passed both the Senate and House and is expected to be signed by the of Congress in support of extending fast-track trade negotiating authority, a provision in governor putting into effect several temporary provisions scheduled to sunset on Oct. 1, U.S. trade law that expedites congressional consideration of trade agreements negotiated 1991. House Bill 4484 adopts the federal field sanitation standards as law in Michigan, by the president. Various forms of fast-track have been used since the 1930s. once the bill is signed by Gov. Engler and filed with the Secretary of State. The bill enables MI-OSHA officials to enforce the federal rules as a replacement for the current, more Fast-track authority was granted to President Reagan and incorporated into the Trade Act stringent state rules through Sept. 30, 1991. The intent is for all interested parties to debate of 1988 with an expiration date of June 1, 1991. The law provides for a semi-automatic their differences during the summer and produce a compromise to be enacted into law prior two-year extension until June 1, 1993, if the president requests such an extension by March to Oct. 1, 1991. 1, 1991, and neither the House nor Senate vote to deny that request by May 31, 1991. The final version of H.B. 4484 removes the seven-fold increase in federal penalties which On March 1, 1991, President Bush requested the two-year extension to help bring the had previously been adopted by the House. However, the increases will likely be included Uruguay Round of GAIT (General Agreement on Tariffs and Trade) negotiations to a in future legislation because OSHA has indicated that "contract states" (like Michigan) successful conclusion, and to begin negotiations on a free trade agreement with Mexico must adopt the more severe penalties. and Canada. Congress now has until May 31, 1991, to decide whether to deny that request, Farm Bureau Contact: Howard Kelly, extension 2044 and can do so by a simple majority vote in either the House or the Senate. When fast-track trade negotiating authority is in place, the negotiations are conducted as follows: Employer/Employee Housing: Circuit Court Decision D The administration enters into trade negotiations with other nations on the basis of U.S. negotiating objectives spelled out by Congress in the trade acts. The Ottawa County Circuit Court issued a second opinion in the DeBruyn v. Romero case which was favorable to production agriculture. The relationship of employer/employee v. D During the negotiations, the administration is required to consult with and seek advice landlord/tenant was at issue. The circuit court ruled that there exists an employer/employee from both the private sector and congressional oversight committees; private sector relationship, not a landlord/tenant relationship. Consequently, the landlord/tenant eviction advisory committees are established to cover virtually all sectors of the economy. rules which allow the tenant several weeks to remain on the premises prior to eviction did (There are currently 11 Farm Bureau leaders serving as advisors with full security not apply. The opinion is being appealed to the Michigan Court of Appeals. clearances.) Under the ruling, an employer can obtain an order to evict within two days. However, if a o Upon conclusion of the negotiations, the completed agreement is brought back for farmer allows the employee to continue to live in the provided housing for three or four congressional consideration. Reports on the effects of the agreement in each sector are days, the farmer would be jeopardizing the employer/employee status and by the fifth day, submitted to Congress by the private sector advisory committees. the farmer likely would revert to a landlord/tenant situation and lose quick eviction remedy. D The administration works with Congress in drafting implementing legislation prior to If this decision is presented to and upheld by the Court of Appeals, it would be binding the formal submission of the agreement. All committees having jurisdiction over throughout the state of Michigan. A farmer would still have to go to court and obtain the elements of the agreement, including the agriculture committees, are involved. court order. However, the significance is that the employee could be ordered evicted in a number of days rather than weeks. o When this process is completed, the implementing bill is introduced formally and fast-track begins. Committees have 45 days to again consider the bill. Hearings can be Farm Bureau has contacted members of the Michigan legislature regarding draft language held again, but the committees cannot, at this point, amend legislation. to enact these principles into law. Farm Bureau Contact: Howard Kelly, extension 2044 o After the 45-day committee review period, the bill goes to the full House and Senate where a vote must be taken within 15 days. The vote is on total acceptance or rejection of the package; no amendments are in order. No-Fault Auto Insurance Reform Fast-track enables the president to negotiate trade agreements with foreign countries, S.B. 154, introduced by Sen. Paul Wartner (R-Portage) provides general amendments for secure in the knowledge that the agreements have had strong input from Congress minor technical revisions to Michigan's no-fault auto insurance law. A conference com- throughout the negotiating process and will not come unraveled at the end as a result of mittee made up of three members from both the House and the Senate will develop the congressional amendments. The vote on fast-track will be the key vote on trade in 1991, reform measures to be included in this bill. An agreement has been reached by both Senate and will set the direction of U.S. trade policy for years to come. and House Insurance Committee Chairs that handling auto insurance reform in a conference Farm Bureau Contact: Al Almy, extension 2040. setting is the best approach to getting auto reform enacted. Farm Bureau remains firm in the position of supporting "Reform, Not Rollbacks" and Budget Reform Measures strongly opposes mandated auto insurance rate rollback legislation to reduce auto insurance costs. Farm Bureau will seek specific auto reform measures in conference committee Farm Bureau is supporting Senate legislation that would provide the president with a discussions to reduce the cost of auto insurance. legislative line-item veto. Senate Bill 196 would enable the president, either 20 days after Farm Bureau Contact: Darcy Cypher, extension 2048 enactment of an appropriations bill or upon the submission of his budget at the beginning of the year, to identify unnecessary spending items and notify Congress that he is reducing or eliminating funding of those items. Continuation Of Block Permit Program The bill would give the president what the governors of many states have, which is the The DNR met with the ad hoc Wildlife Task Force in March to review the preliminary opportunity to strike out excessive, often times unrelated, spending. Sometimes that report of the 1990 deer season and plan for the 1991 deer season. Summer shooting permits spending is buried in a larger, more important, spending bill that is difficult to veto as a and block permits will continue to be available through 1991. whole. The measure is sponsored by Sen. John McCain (R-AZ) and Sen. Dan Coats (R-IN), and has 28 co-sponsors thus far. However, the small percentage of farmers who participated in the block permit program and did not return the "Report of Hunters Issued Crop Damage Permits" to the district In a related tax and spending matter, Sen. John McCain is sponsoring a measure that would wildlife supervisor by Jan. 15, 1991, as required in the agreement, will not be eligible to make it more difficult to increase or create new taxes. Under the measure, the Senate would apply for block permits during the 1991 season, but can apply in 1992. have to round up 60 yes votes to approve tax increases, but would only require a simple majority to approve a tax cut. It's expected the measure will be introduced in mid-April. The objective of the block permit program remains to take antlerless deer during the regular hunting season by licensed hunters where there is a problem with crop damage due to Farm Bureau is working with a number of other business and taxpayer groups to obtain as excessive deer population. Farm Bureau continues to support a statewide block permit many original co-sponsors as possible. program and the continuation of the summer crop damage shooting permits. Farm Bureau Contact: Al Almy, extension 2040. Farm Bureau Contact: Vicki Pontz, extension 2043. Federal Highway Plan Proposed DNR Split A new federal highway plan could mean less money for rural roads and bridges. A Bush Status: MFB has written Gov. Engler expressing Farm Bureau's opposition to the proposal administration five-year highway plan proposes reclassifying the nation's road system and to split the Natural Resources Commission into two separate commissions - one to handle changing the ratio of federal versus state funding. natural resources issues and the other to handle conservation and recreational issues. Farm Bureau is opposing the measure, pointing out that rural roads and bridges have been Forming two separate commissions would mean additional administrative costs and create neglected for the past 35 years while the interstate system was being completed, and that the potential for greater lack of coordination between divisions within the DNR. MFB now the federal government should be increasing the funding ratio for the rural segment would support a strategy similar to Wisconsin, where one decision-making body (the of the road system. Natural Resources Commission) is divided into subcommittees to ensure that all environ- Farm Bureau COlUlct: Al Almy, extension 2040. mental and natural resources issues receive the full attention they deserve. MFB is also pointing out that it is imperative that agriculture be represented on any decision-making body affecting the natural resources of the state, because the agricultural From MFB's Public Affairs Division, (517) 323-7000 industry can be impacted by the actions of nearly every division within the DNR. Farm Bureau Contact: Vicki PonJz., extension 2043. Michigan Farm Ne\IVs April 15, 1991 Below Normal Rainfall In May & June Warmer and wetter than normal weather covered much of Michigan during March, Percentage of with the exception of the southeastern Lower Peninsula, where precipitation was Normal below normal. The warm temperatures Outlooks For Major Commodity Areas Precipitation caused overwintering vegetation to quickly lose hardiness and, in some case, promoted Totals For early growth. T-Temp. 4/15 .. -4/30 4£14- 6/30 P - Precip. T P T f 156% March The latest 3O--day outlook is calling for W. Corn Belt A A N B E. Corn Belt A A N B above normal temperatures in central and Wint. Wheat Belt N N N N southern sections, and near normal Spr.Wheat Belt A N A B temperatures in the north. Precipitation is Pac. NW Wheat N A N N expected to be ne~ ~ormal across the st~te. Delta A N N A 140% 164% While normal mInImum temperatures In- Southeast A N N A crease to the low 40s in the southeastern West Texas N N N A San Joaquin N A A N Lower Peninsula to near freezing in the Upper Peninsula by month's. end, !rost and A-Above Average, B-Below Average, freezing temperatures remam a lIkely bet N-Normal, MA-Much Above, MB-Much into May. Normal monthly precipitation For 3/1/91 Temperature Dev. Precipitation Below, NP-No Precip. ranges from 2.5 inches in the Upper and to 4/1/91 Avg. Avg. From Actual Dev. From Max. Min. Normal linch,} normal northeastern Lower Peninsulas, to near 3.5 Alpena 40 23 +4.5 3.04 +1.11 inches in southwestern lower Michigan. Detroit 49 32 +5.5 1.43 -1.11 Flint 47 30 +6.0 2.85 +0.71 The 9O--day outlook calls for above normal Lansing 47 30 +6.0 3.77 +1.47 Grand Rapids 47 31 +6.0 3.47 +0.99 temperatures, and a drop-off in pr~cipit~- Houghton Lake 42 24 +5.5 2.94 +1.06 tion to below normal values, especIally In Pellston 40 23 +6.5 5.17 +3.12 May and June, leading to lower than nor- Sault Ste. Marie 35 20 +4.5 3.57 +1.72 mal soil moisture levels to start summer. Traverse City 42 27 +6.5 2.89 +1.11 Marquette 35 19 +1.0 3.76 +1.71 Jeff Andresen = High Temp. 73 at Detroit on 3/22/91 Agricultural Meteorologist Low Temp. = 0 at Sault Ste. Marie on 3/3/91 Michigan State University USDA/Iraq Export Credits Go To Arms Loan guarantees issued by USDA for farm exports to Iraq in the late 80s exceeded the prevailing market prices of the co.m- modi ties by millions of dollars, accordmg to an audit conducted by the department's The difference between of over 3.5 million farming inspector general, Leon Sneed. apples and oranges can be families and other independent spotted at a glance. Unfor- businesses. The result: top A sample of 64 USDA-guaranteed sales of tunately, it's not quite as easy notch health care insurance wood pulp, rice, com and sugar to Iraq or to tell the difference between at down-to-earth prices. Mexico in 1987 - 1989, revealed that 53 health insurance policies. contracts were priced more than 15 percent That's why we recommend As a Farm Bureau member higher than world market indicators. that you take a moment to read you can choose from three the fine print if you're offered traditional Blue Cross Blue The auditors uncovered $78.6 million in health insurance for less than Shield Comprehensive Major what they termed "significant pricing dif- Farm Bureau rates. Chances are Medical plans starting as low ference" on the 64 contracts. Of that total, you're being asked to compare, as $60.12 a month. (The higher $71 million was on Iraqi export contracts. well ... apples and oranges. the deductible, the lower the Until last year, Iraq was one of the large~t premium.) Regardless of the What you'll find is that dollar plan you choose, you'll get the participants in the USDA's export credIt for dollar, Farm Bureau same Blue Cross Blue Shield program. Since being suspended from the insurance is the better value. comprehensive major medical program around the middle of last year, Iraq That's because Farm Bureau coverage. has given no indication that it intends to pay offers you the buying strength off $1.9 billion in outstanding loans under the program. It's speculated that large por- So go ahead-<:ompare. tions of the loans were diverted to use in the As sure as apples aren't oranges ... Just make sure you know what Iraqi military build-up. you're comparing. When the decision's in, we think you'll choose a Farm Bureau health care insurance plan for its affordability, the services it offers, and the protection it provides against unscheduled time off. ~ What matters to you HERITAGE BUILDING SYSTEMS matters to us. 1-800-643-5555 FREE INFORMATION PACKAGE For further information call = :50 =x 75 x= 14 ~~ : : : : : : : : : : : : : : : : : : : : : : : : : : : : ::::~ ..•.••.••..•.....••..•.••.•. 60 x 100 x 16 .••••••.•...•••.•..••...••. $10,590 $17,750 WHERE BELONGING 1-800-292-2680 or contact your local Farm Bureau agent. e~...-.ctIrd ...... CIIII--,... eornm.d8I-=::::':':~~.~~~ MAKES A +~~= ~"- ...~ 1MIIIbIa. FOBNorbm, ~Of tor prtdng on BuIdlngI, ShMlIng, 1Hm, DIFFERENCE . -- ... MICHIGAN FAR", BIJREAV FAMILr OF CI»fPANIES Michigan Farn1 Ne\Ns -. April 15, 1991 Naxeell Approved Norris Named Meat Board Chairman Treatment of BRD in Lactating Cows Berrien County Farm Bureau member T he U.S. Food and Drug Administration (FDA) has approved Naxcel Sterile Pow- "This new approval provides dairy producers with an effective, convenient Robert D. Norris, a Berrien Center pork and beef producer, was elected the new chair- der for treating bovine respiratory disease tool for controlling pneumonia in both man of the National Live Stock and Meat (BRD/pneumonia) in lactating dairy cattle. cows and young stock. When used accord- Board during the organization's annual ing to label directions, Naxcel requires no meeting in Chicago. The new claim for Naxcel, a broad pre-slaughter withdrawal, or in lactating spectrum cephalosporin antibiotic, repre- dairy cattle, doesn't require a milk discard Norris was seated as a director in 1982 to sents approval of an injectable antibiotic period," said Ricke. "Careful management represent Michigan pork producers. He was product that is specifically authorized for and the prescribed use of Naxcel can now elected chairman of the Meat Board Pork use in lactating dairy cattle. The product help producers minimize milk losses as- Industry Group in 1987, secretary-treasurer was originally introduced by the Upjohn sociated with respiratory disease." of the Meat Board in 1989 and chairman- Company in early 1988 for treating BRD elect last year. He is a partner in Homestead in beef and non-lactating dairy cattle. According to Ricke, more than 100,000 Farms, with his son Erich. dairy cows are affected with pneumonia According to Doug Ricke, Upjohn product annually, with over 6,000 of them lost as a Norris called the Meat Board a sound in- manager for Naxcel, dosage recommenda- result. vestment for the livestock and meat in- tions apply for all ages of dairy cattle. dustry when it was founded 69 years ago Another 81,000 dairy replacement heifers, and it remains a sound investment today. "It from 6 months to two years, are affected by all comes down to defining your mission FPC Moves Into respiratory disease, accounting for another 6,000 head lost annually. and sticking with it," Norris said. "The Meat Board will continue to be successful, be- dustry; there should be aggressive Animal Health In addition, nearly 400,000 dairy calves cause we have stuck by our mission and the basic principles that support it." beef/veal, pork, and lamb promotion; checkoff investments should be collected Products Market from birth to six months contract pneumonia, resulting in approximately Norris outlined a five-point strategy for the from the broadest possible base; Meat Board representation should reflect local 62,000 calves being lost every year. Meat Board to pursue including: Repre- control; and the Meat Board should remain sentation of all major segments of the in- accountable to the meat industry. Farmers Petroleum Cooperative, Inc. has entered into a new venture - the sale of animal health care prodcuts. The new line, being test marketed out of the Sandusky retail center, features numerous medica- tions for beef, hog, equine pets and special emphasis on the dairy market, according to Sandusky assistant manager Doug Bays. "A large portion of our agricultural patrons have livestock and dairy operations," said Bays. "The dairy products in our line are extensive and include milk house equip- ichigan ment, soaps, sanitizers, filters, gates, feeders, tanks, and other related items. Our buying power through Universal Coopera- tive enables FPC to improve our customer Farm Bureau FElUS service with this new venture." Test market strategy at the Sandusky retail center includes the purchase of a stepvan Prescription CEN1ROVlIE TABS roMPARE that includes shelving for product display as well as a small refrigerator for storage of animal health care products. Driver sales- man Dan Babcock is currently covering 25 percent of Sanilac County, with plans to Program 10CENIRUM at $11.$515 extend services to the entire county. According to Tim Underwood, FPC Special~ For marketing manager, FPC will evaluate its ability to dispense animal health products Michigan FarmBureau COMPARE from this experience and possibly begin statewide distribution in the future. Members! AND SAVE! Animal Rights Big Business! FEltiI.'ORUG A Connecticut-based animal rights pub- lication called "THE ANIMALS' AGEN- DA," recently listed the 1989 budget plus AcETARYAnaS -:..!aminophen Tablets the assets and pay for executives of the '''.1I'I.jree leading animal rights groups. The results? ~.Iasl pain relief ~ to ICtM ~h 01 TfItOIllI! Regular Streng1tl T1bIett. Leading the list was the North Shore Animal League with a 1989 budget of $19.6 FEID'S m TABLETS • 325 MG. EACH ' million. The Massachusetts Society for the Prevention of Cruelty to Animals NAWRAL (MSPCA) was next biggest with a budget of $17.6 million, followed by the American VEGETABLE ii!5?9 !~~!!e~~!!335 Society for the Prevention of Cruelty to (:,.41# ~ ~ ........ ot-'l Animals (ASPCA) with $16.4 million, ~~-"')0'1<,« ~~-'~""""-' ,,-:-'" :.....~ e..w .....~, Humane Society of the United States ".A~::=::''';'';;''''' (HSUS), $13.5 million, and People for the ,...... .. ~"":.,.,.... ... ."...< CALL Ethical Treatment of Animals, $6.5 million. '<'r., ~,,'tstt "- ~ ,J 11 AT $9.89 ASK FOR FREE CATALOG! The total assets of the respective organiza- tions were much the same. Again, the North Shore Animal League showed a whopping $51.2 million assets, followed by ASPCA with $39.5 million, MSPCA with $27.2 ------------------------------ •• I I I --------------- I million, and HSUS with $22.8 million. In 1989, David Ganz, executive director of : SAVE $300 :: FREE ~!RM!!! : : SAVE $500 : the North Shore Animal League, received an annual salary of $163,700, while John Hoyt, president of HSUS, was paid $146,927. What's more striking is that : =~~~ I I WITH next order, and n:cm-e$3.00off purchase price. YOUR NEXT FELiffPRUG ORDER OWCollpoftpn-Ordn- Good tbru SepL ~ 1991 I I I.: I I WITH =.n~=\N order to nn:ive yourfrttbottle. YOUR NEXT FELiffPRUG ORDER Ork>Couponpn-Ordn- Good tbru ~ ~ 1991 • II • : =~~~ I I WITH YOUR next order, and n:cm-e $5.00 off ~ price. NEXT FELiffPRUG ORDER Ow Coupotl pn-Order Goodtbnl Sept. ~ 1991 I : I these organizations spend about 90 cents of ~------- I~ -- I ~------- I every dollar for mail, the vast majority of which is used to solicit more funds. Michigan Farm News April 15, 1991 MARKETS ...... •••••••• ••••••• 1. ••••••• r• ••••• ~.rl Seasonal Commodity Price Trends (long term) -Corn Watch New Crop Rallies Darrel Good, University of Illinois Extension economist, says the November-December com and soybean prices reached in March FARM •••• '1•••~:.. •••• .r •••••• ~ •••••••• •••••••• ,j ••• .' j.:;::-... •••• . The com market has become very choppy. may have been season highs. Good said the The positive USDA stocks and acreage March 6 level of $6.38-1/2 for November BUSINESS Wheat t reports should turn the market higher. Old crop com has traded downward, but most beans and the March 4 price of $2.68-1/4 for December com may not be topped again this of the recent price weakness was centered on new crop. The recent weakness in new year if we have no serious weather concerns. The economist isn't predicting a crash, but is OUTLOOK Corn 1 crop suggests there is some concern about increased com acreage. suggesting farmers should watch the market and sell part of this year's crop when December com futures hit $2.60 again and November soybeans reach $6.20. Soybeans f Where's the BEEF? Soybeans Many meat packing plants are closing temporarily or cutting back work schedules for lack Volatility in soybean prices increased once of enough beef animals to keep operating at full capacity. Cattle prices for April delivery futures broke out of the winter doldrums. hit a record 82.7 cents a pound on the Chicago Mercantile Exchange April 3, sparking a Hogs TP Soybean basis has taken on an easier tone rally on hog and pork belly futures, according to the Wall Street Journal. in the river market, while crushers are still Cattle TP bidding with strong basis for soybeans. In recent weeks, analysts say, U.S. meat packers have slaughtered the smallest number of animals since 1979. Because slaughterhouses are expensive to idle, packers are bidding up Farmer movement is light and uninspired at the present. Not much incentive to sell at prices just to get enough animals to stay in operation, but experts say they could be losing Index: i= Higher Prices; != Lower Prices; TP= Topping; BT= Bottoming; ? = Unsure the lows when planting rallies are just as much as $20 per head on cattle they're buying. around the comer. Large packers can withstand the adversity, but some express concern for the strength of smaller firms. "This isn't a sustainable situation," said Jens Knutson of the American Meat Wheat Institute, an industry trade group. Cash wheat prices are nearing their highest level since last summer. Wheat continues to ride the waves of potential weather fronts. The last major front lacked water and contained Regular U.S. Soybean Buyer Checks Out Argentina damaging winds. It's too early to assess real damage. Another round of "too dry" talk would Taiwan, a regular, year-around buyer of U.S. soybeans, recently. made a purchase from be bullish to wheat prices. It is too early to assess 1991 world wheat production potential, Argentina at a price discount of about $10 a ton. Traders said the initial purchases by but it is not too early to start monitoring the crop. crushers are trial cargoes they will use to check out quality and delivery capability. Before any of the 1991 wheat is in the bin, the USDA will have to announce its acreage There has been a growing quality acceptance of Argentine soys, though some buyers have reduction program rules for the 1992 crop. The new fann law requires the wheat ARP claimed to have had quality problems with purchases from that country, according to announcement by June 1. Knight-Ridder News. Rules For 1992 Wheat Due Soon In 1989-90, Taiwan bought over 2 million metric tons of U.S. soybeans. Through March The 1991 program required producers to set aside 15 percent of their wheat acreage base to 14 of this year, they have bought 1.3 million metric tons, compared to 1.542 million metric remain eligible for fann program benefits. The figures being considered for the 1992 crop tons purchased by that date last year. are 5 percent, 10 percent, and 15 percent. Public comments on the 1992 wheat program will be accepted until May 10, 1991, according to Keith Bjerke, executive vice president of the EC Ministers Still Oppose Farm Cuts Commodity Credit Corporation. After two days of meetings, officials of the European Economic Community said only the farm ministers of the United Kingdom and Holland supported the proposed cuts in fann Cattle supports for the 1991-92 marketing year. With large feedlot inventories, even though feedlots have stayed current, there is risk of The other 10 EEC countries were calling for the 1991-92 spending ceiling for fann supports weights starting to build and numbers starting to backlog if the strategy on the part of packing to be raised by 1.3 billion European currency units to take into account German unification, plants backfires. Packer margin problems are not expected to go away overnight and so the but that measure was also defeated. The ministers are scheduled to meet again in late April market is looking for more temporary closings over the next couple of weeks. The high and will be looking for an acceptable compromise. cattle and beef prices are pushing the limits on consumer spending for beef. -Hogs More Soviet Trade Indicated There is good news for the wheat market, with the targeting of additional bonus sales of2.0 million tons to the Soviet Union and 250,000 tons to Jordan by the USDA. However, offers The recent USDA report will, by far, be the most dominant influence. Chicago Mercantile under the initiative will have to await increased funding. Exchange traders termed the report neutral. It doesn't appear that producers have yet made major efforts to rebuild the breeding herd. The weekly bacon storage report showed a very Meanwhile, the Soviets said they would like the $33 million of their $1 billion export credit large movement of product into storage. This points out problems in moving product. The guarantee not yet allocated to be earmarked for com purchases, which could give a bit of entire pork product market has been sluggish the past few weeks. encouragement to the com market, already experiencing a tight supply situation. Sheep U.S.-Canada Tariff Reduction Ahead of Schedule The dramatic price declines that gripped the sheep industry last year is not expected to A trade panel representing both the United States and Canada has approved removing tariffs improve this year, according to USDA's Economic Research Service. Market lambs that on about $2 billion of trade goods ahead of schedule under the U.S.-Canada Free Trade sold a year ago for $66 per cwt. were bringing only $48.60 in mid-March this year. The Agreement, according to Knight-Ridder News. sheep and lamb inventory as of Jan. 1, 1991, was down about I percent from Jan. 1, 1990, to about 11.2 million head. It was the first decline in sheep numbers since 1986, marking The U.S. Trade Representative's (USTR) office said the commission agreed to speed up the end of an expansion cycle that began that year. tariff elimination on over 250 items affecting agriculture, chemicals, machinery and transportation. Another 400 specific products will be affected by the decision, subject to -Wool production-also dropped about 1 percent last year to when it sold for around 80 cents approval by both governments. a pound, compared to $1.24 a year earlier and $1.38 in 1988, the ERS reported. Most of the tariffs would be removed by July 1, 1991, but some others will be converted Lamb prices shrank from an average of $78 per cwt. in 1987 to $68 in 1988, remained at from the standard 1O-year phase-out to a five-year plan or even shorter periods. The USTR that level in 1989, then plunged to $54 on the San Angelo, Tex. market last year. The 1991 said the commission recommendation will affect about a billion dollars in sales of U.S. price is expected to average in the low $50 range, according to USDA's Ron Gustason. goods to Canada and about an equal amount going the other way. USDA Prospective Plantings Report USDA Hogs and Pigs Report (National estimates in millions of acres) percent of Michigan Michigan percent Current 1990 Mich. 1990 Mich. previous year 3/1/91 3/1/90 change National National Estimates Figures All hogs and pigs 1020/0 1,100,000 1,150,000 - 40/0 Soybeans 57.1 57.79 1,300,000 1,115,000 Kept for Breeding 101% 180,000 190,000 - 50/0 Corn 76.1 74.17 2,500,000 2,400,000 Kept for Marketing 103% 920,000 960,000 - 4% Total Wheat 69.0 77.28 530,000 770,000 * Dec./Feb. Pig Crop 103% 356,000 383,000 - 7% Dry Beans 310,000 350,000 Mar./May Farrow. Intent. 80,000 Sugar Beets (highest level since 1933) 164,000 na. June/Aug Farrow. Intent. 72,000 All Hay Harvested 1,400,000 1,445,000 Barley 35,000 45,000 * Average pig per litter nationally was 7.87, a new record high. * Average pig per litter in Michigan was 7.9, down from 8.10 the previous year. Grain Stocks Com 4.79 bill. bu. 00/0 131 mill. bu. + 70/0 Soybeans 1.19 bill. bu. + 13% 18 mill. bu. + 29% Wheat 141 bill. bu. +48% 16.1 mill. bu. + 820/0 .. Oats 229 mill. bu. na. 5.6 mill. bu. - 350/0 From MFB's Commodity Activities and Research Division (517) 323-7000 Michigan Far." Ne\Ns •• April 15, 1991 March Ag Prices Up, But Farmers Get Less Wendy's The USDA reported the index of prices received by farmers rose 2.1 percent from February Announces Corn with record cattle prices, and citrus still climbing from the December freeze in California leading the way . Average prices received by farmers, however, were still 1.3 percent below Oil Campaign March 1990, the department said. Milk prices continued downward, hitting their lowest levels since July 1988. The price paid F ast food giant Wendy's announced a year-long nutritional campaign featuring by dealers and processing plants for milk was down 20 cents from the previous month and com oil. Dave Thomas, founder and senior $2.40 per cwt. below the March 1990 average. Egg prices rose 14.8 cents a dozen for the chairman of Wendy's, made the an- month and slight gains were recorded for most food and feed grains. nouncement during the National Com Growers Association (NCGA) annual Milk and Cheese Prices Not Making Cents meeting in Kansas to about 1700 members. Farm A group of Wisconsin legislators are asking why milk prices have dropped so d~ati~ally The decision to cook its french fries ex- without cheese following suit. The group is asking the state attorney general to InvestIgate clusively in com oil will create a demand banks are whether Kraft General Foods, the nation's largest cheese producer, is using monopoly for more than 13 million bushels each year, pricing in the cheese market, according to a recent Wall Street Journal report. according to John Campen, market director rebounding for NCGA. Promotional efforts include the Milk prices at the farm have dropped 30 percent in a year, to $10.10 per cwt, say the use of a new com oil logo (upper right) on (9 complaining legislators, while cheese prices for March were 2.3 percent hIgher than a year all of Wendy's promotional and informa- ago. tional items about the new program, includ- ing over 10 million tray liners, one million 04,1930 Kraft officials say the charges are unjustified and claim to have c.utprices in Octobe.r. Retail nutritional brochures and menu boards in DO . DO dairy prices are in for wider scrutiny, with a congressional heanng scheduled Apnll O. each of Wendy's 3,600 outlets. Total Farm Banks Total Commercial Banks 19805 - 322 Bank 19805 - 731 1990 - 18 ~ Failures • 1990 - 151 Right to Farm _USDA-ER$ Procedural Changes Approved T he Michigan Commission of Agricul- ture, upon recommendation of MDA Direc- Extension's EMAT program of the 1980s. pollutors pay law, all of which are lost once MACMA In short, this would be one last chance to a complaint is turned over to the DNR. tor Bill Schuette, approved the following proceoural changes in the administration of resolve the problem before it goes before the Ag Commission, which must then- In other Right to Farm news, the Ag Com- Spring Sale farmers' rights and responsibilities under decide whether to transfer the matter over mission will be accepting public comment Michigan's Right to Farm Act, during their to the DNR for enforcement. on the current regulations at their April 16 March meeting: and 17 meeting, as part of the annual review The thought here is that rather than auto- process called for in the act. Two draft NEW 1. The farmer will be informed by let- matically turning the case over to the DNR, proposals will also be unveiled for public ter immediately after a complaint has the problem could be assigned to an "Ag comment. • U-Bake Croissants been filed agaInst his operation. The Team" that would visit the farm in the letter will include a copy of the • Melon Chunks period between the 90 day expiration According to Schuette, one proposal deals "Generally Accepted Agricultural period and the next meeting of the Ag with the safe and effective use of pesticides, • Citrus Salad (fresh chilled and Management Practices" and en- Commission. the other with nutrient management sections) courage the farmer's cooperation. guidelines. The public comment period and Since June of 1989, MDA has received final approval time table has not yet been According to MDA Director Bill Schuette, under previous procedures, a farmer wasn't over 200 complaints under the Right to Farm Act. Three of those cases were not established. 'l#"mTrrrrJ11,/j//'. informed that a complaint had been filed resolved and ultimately were turned over Farmers interested in submitting written against him until MDA personnel arrived at to the DNR. None have been transferred comments on either of the Right to Farm DID YOU KNOW? the farm to do an inspection. thus far in 1991. issues should write to: "We think it makes good sense and shows While Right to Farm guidelines are volun- • 88ct per pound So Long Hot Dogs Michigan Commission of Agriculture courtesy to let that farmer know a complaint tary, not mandatory, Schuette did point out P.O. Box 30017 has been filed as soon as possible," said • 79ct per pound Asparagus Spears that farmers meeting "Generally Accepted Lansing, MI 48909 Schuette. "We hope that this will encourage farmers to voluntarily correct the problem, Agriculture and Management Practice~, do receive protection in a number of cruCIal 11 Requests to speak before the commission 'I hydrocool ed • U-Bake Croissants almost 1/2 the if there is a problem." areas including: protection against should be sent to the same address with a nuisance lawsuits; exemption from obtain- cost of previously offered pre-baked summary of the statement to be presented. 2. If, after a farm inspection by MDA, ing an air quality and water quality permit; an environmental concern appears and exemption from liability under the new to exist, the farmer will receive a fol- low-up letter and a subsequent phone call. The purpose of the call is to check on progress in imple"!ent- ing the generally accepted practIces. Past procedure called for a follow-up letter with no phone calls to encourage f~er Order by cooperation with MDA recommendatI?nS before the expiration of the 90-day penod Wednesday allowed under the act had expired. With the Hol/and Tulip Festival - Thursday, May 16 April 24th recent changes, a farmer will receive a letter within days of the visit, and a phone call Cost: $69 per person within 60 days to check the status of im- The festival will be in full swing today as we visit Windmill Island and plementing recommendations. Dutch Village. We will view the porade from our comfortable ~n chairs, For more details and a full enjoy our included dinner cit the Old School House and much more. list of products, contact your "One of our hopes is to eliminate the con- fusion associated with Right to Farm prac- A memorable spring day! county Farm Bureau or call tices," says Schuette. "As part of the follow- 1-800-292-2680 ext. 2305. up letter, we'll encourage the farmer to c~n- Mackinaw Island Ulac Festival Time - MOn.clay, June 12))3~~ tact his local CES, SCS and ASCS for assIs- tance. We're attempting to form a working Cost: $280 per person, based on double occupot;lCy :-\. partnership. " Experience the magic that is Michigan on Mackinaw Island. Enjoy'~pectacular accommodations at Mission Point, the largest resort property on the Island, located 3. If a concern continues to exist, an on the southeastern shore. This specially designed mini vacation includes a host of "Ag Team" may be asked to visit the interesting stops, along with outstanding lakeview accommodations, daity farm. The team could be comprised of representatives from .ed,,!cational breakfast, one dinner with full choice of the menu, a carriage tour of ~ island institutions, farm organIzatIons, the and much more! Fullpayment due by April 29, 1991. Commission of Agriculture or other To book your GETAWAYcall J (800)-354-4272 respected members of the agricul- tural community. Note: All podages are subject to availability. Prices ore subiecJ 10 change or variation For J99J. The" Ag Team," appointed to work with. an miCHIGan'S operator on a case-by-case basis, dependll~g on the circumstances of the case, IS _ .. /tIICHIGAN FaRm BeST fashioned after the MSU Cooperative .... FAR/tl BIJREAIJ Michigan Fartn Ne\Ns -. April 15, 1991 ~ m Protect Against ......... Tractor Rollovers service. Both ROPS and safety belts offer o Securely ~~\,~ protection from the tremendous impact of a rollover, and safety experts estimate that fasten your safety belt if the tractor has ROPS. ~ '- ~~f the use of ROPS on all tractors in Michigan would reduce the tractor deaths by another o If possible, avoid operating the tractors near ditches, embankments, and holes. H ~JY third. Unfortunately, far too many tractors remain o Reduce speed when turning, crossing slopes, and on rough, slick, or muddy - unequipped, with potential for disastrous surfaces. consequences. If you don't have ROPS, see your tractor dealer to find out if you can retrofit your tractor to provide proper o Avoid steep slopes. From Farm Bureau Insurance protection for you, your family, and your employees. And if you do have ROPS, be o Watch where you're going, especially at row ends, on roads, and around trees. sure to wear a safety belt properly. Lack of Jury Still Out on or improper use of a safety belt greatly o Don't permit riders. diminishes the lifesaving potential of the Organic Profits The tractor may be one of your most valuable tools - and also one of your most protective structure. o Avoid jerky turns, starts or stops. deadly. In Michigan, about half of all agriculture-related deaths each year are the Keep in mind also that you can prevent most overturns by operating your tractor o Hitch only to the drawbar and hitch Organic farms have lower crop yields result of a tractor rollover. points recommended by tractor than farms using chemicals to produce carefully, hitching properly, and keeping manufacturers. crops, but they also get higher prices and your speeds within safe limits for condi- have lower costs, according to a recent Ohio There is good news, however. Deaths at- tributable to tractor rollovers have declined tions. o When the tractor is stopped, set the State University study. According to Mar- in recent years as more tractors equipped brakes securely and use park lock if vin T. Batte, the agricultural economist who Here are safety instructions that you should available. conducted the research, the jury is still out with safety belts and ROPS - rollover pass along to anyone operating tractors: protection structures - have been put into on bottom-line profits of organic farming. "Our evidence is far from conclusive," Batte says. He compared organic production from 1990 with "average" Ohio farm production from 1988, the latest year statistics are A survey confirms • • • available . Batte's 1990 survey brought responses from WfJ~rJ..,\:\ 'IE~ ~R.,' ~E".,F,. 65 of 90 certified organic crop farms. His study showed organic farms earn about half the gross receipts of conventional farms, II. r-!r: while net income was slightly lower. As a group, organic producers spend about 14 cents per acre on pesticides and $10.58 ~NJ TUNE for fertilizer, Batte says. That compares to $27.55 for chemicals and $45.28 per acre for fertilizer on conventional Ohio farms. Surprisingly, machinery and labor costs on the largest organic farms were essentially W~THJOUR equal to those of conventional farm opera- tions. Normally, organic farming is thought of as requiring more labor for tillage to replace chemical weed control. Farmers selling organic com in 1990 earned $1.50 per bushel more than those who did CUSTOMJERS not, with most of that com sold to farmers raising organic livestock. Organic soybeans typically went to either processors or into the international market and were worth $4.50 more per bushel than conventional soybeans. A $3.04 per bushel premium was also available for organic wheat. A 1990 survey of 1200 Farm Bureau Insurance policyholders revealed The study of organic farms also showed that a high level of satisfaction with our service. they are slightly less than half the size of conventional farms and market about 62 .Customers especially liked their agents, describing them as friendly, percent of their crop as "organically professional, knowledgeable, and accessible. produced." Vegetables are twice as likely to be sold as organic than field crops such as .Customers also gave us high marks for our good claims service, com or soybeans. financial strength, commitment to the community, and concern and respect for customers. "Tillage, " continued from page 1 •If prompt service is important to you, call your local Farm Bureau Insurance agent today. We'll protect your home, farm, life, Herbicide programs can also impact how many tillage passes you'll need. Several business, auto, and retirement. thiocarbamate herbicides don't require a leveling pass before application on chiseled ground and can stand depths of four to six inches. Acetanilides and triazine herbicides WE CARE ABOUT OUR CUSTOMERS are often labelled for incorporation no deeper than two to three inches, requiring a leveling pass before application and another afterwards for incorporation. Making Your Future More Predictable If you're looking to reduce a tillage trip, keep in mind that tilling the soil isn't the only reason you're running over the field, advises George Rehm, soil professor at the ... FARM BIJREAIJ University of Minnesota . ••• @ INSIJRANCE FARM BUREAU MUTUAL • FARM BUREAU LIFE • FARM BUREAU GENERAL • FB ANNUITY "What it comes down to is the grower knows the importance of weed control to maintain high yields," says Rehm. "He won't sacrifice that one dollar per acre savings; he'll use the weed control and tillage prac- tice that gives him the best controL"