r~J December 18, 1992 r~f Vol. 69, No. 20 Policy Development Headlines MFB Annual Michigan Corn The annual meeting of the Michigan Farm Information Exchange Bureau, held Dec. 1-4 in Grand Rapids at the Amway Grand Plaza, included the an- Program Kicked Off nual meetings of the Michigan Agricultural Marketing Cooperative, Inc. (MACMA), Farmers who have com that's high in mois- the Farmers Petroleum Cooperative, Inc. ture and/or low in test weight may find a (FPC), and the naming of three new state market for at least a portion of that com crop Young Farmer award winners, as well as a by selling it directly to northern Michigan two-day product trade show, and an address livestock farmers. The Michigan Com Infor- by Governor John Engler. mation Exchange (MCIE) is sponsored by the MSU Cooperative Extension Service. As if that wasn't enough to do, 460 farmer Michigan Farm Bureau and the Michigan delegates considered a slate of proposals Farm Radio Network. presented by the MFB 20-member Policy Development Committee. The policy rec- With the unusually cool growing season and ommendations were the consolidated ef- early frost, many northern Michigan farmers forts of 69 county Farm Bureaus. have seen most of their com crop go to com silage. According to Osceola County CES Policy Development Highlights Director Gerald Lindquist, many northern Among the policies presented, discussed, Michigan fanners were having com yields and eventually adopted, was a school fi- certified by ASCS as zero bushel yields. nance policy that supports reduction in Many southern Michigan farmers, mean- property taxes with a shift to other sources while, are finding that with high moisture to replace the lost revenue. Those sources levels and low test weights, many elevators of revenue could include an increase in the are reluctant to take their com, without se- state income tax, sales tax or other taxes. vere penalties. wetlands delineation manual. They also to make the tough choices that would lead "There are farmers in northern Michigan The delegates also approved policy encour- recommended that any reorganization of to a fairer tax structure. aging the closing of the State Police Detroit who don't have enough com to feed live- local USDA offices be apportioned accord- stock through the winter," said Lindquist. Freeway Patrol Post and redistributing ing to benefits delivered and geographic "I think the property tax, of all the taxes that those personnel and resources to rural posts "The MCIE can help growers move their locations. people are faced with today, is the most corn into a market instead of paying drying that are suffering from budget problems. unfair and the most arbitrary and the one in expenses and put livestock producers in Engler - Action on Property Taxes need of change," claimed Engler. "I believe . touch with sources for high moisture corn. " Policy was approved in favor of exempting Gov. John Engler addressed nearly 600 the new Legislature will deal with that." trucks that move highly perishable agricul- members during the annual AgriP AC tural commodities to market from the sea- The MCrE will allow interested growers to breakfast, saying that property tax reform Engler also said that 1993 will be a year of list their name, county and city, phone num- sonal weight restrictions. Delegates also would definitely be on the agenda in the incredible activism, because "the gridlock ber and quantity, in bushels available. Up- passed policy in support of a research and new legislative session. is broken." promotion program for nursery and green- dated lists will be provided to county CES, house growers and a marketing and bar- county Farm Bureau offices, and will be "I do not interpret the defeat of Proposal C, "We're going to be a state that is going to printed in the December, January and Febru- gaining program for red tart cherry produc- the Cut and Cap plan, as a defense or an be very reform-minded ...! would say that ary issues of Michigan Farm News, (see page ers. affirmation of 'business as usual' as far as Michigan ought to fasten .... some seatbelts 15 this issue). property taxes are concerned," Engler said. and get ready, beca!lse 'we' re going to roll They also asked for total repeal of the state "There is a demand and a need, in my judge- in Lansing on some of the issues that for too To be placed on the list, producers should inheritance tax and for the reestablishment ment, to both limit the rate of increases in long have been languishing and been left of a task force to study the problem of stray either caU 1-800-968-3129 at Michigan assessments and actually reduce the prop- unresol ved," Engler said. "It's time to really Farm Bureau, or (517) 336-1555 at MSU. voltage. They opposed mandated auto in- erty tax burden as a means of funding edu- write a record that allows Michigan to ap- Readers can also fiU out the coupon on surance premium rollbacks, unless they're cation." proach, with a great deal of confidence, the page 15 of this issue and mail it directly to offset by reforms and reduced costs. 21 st Century. " MSU Outreach Communications, c/o Engler went on to say that he didn't believe MCIE, Room 312 Ag Hall, East Lansing, On national issues, the delegates recom- the citizens of Michigan would be satisfied Continued ...See "MFB Annual Meet- mended that the American Farm Bureau MI 48824-1039. It's anticipated that the with the status quo any longer, adding that ing Highlights" on Page 5 and Yaung MCIE will run until March 1, 1993. Federation support NAFT A, oppose na- it meant the legislators would finally have Farmer winners on 16. tional health insurance, support restruc- tured crop insurance and oppose a National Academy of Sciences study of the federal A Cold Winter's Day For Bill and Clair Armbrustmacher, of Clin- ton county, several days of below freezing temperatures in early December meant an opportunity to put the wraps on another harvest season. The brothers, who milk 120 cows in addition to rasing 900 acres of crops, had just 40 acres left to go. Corn from this field was running around 30 to 32 per- cent moisture and was being put up in an "Ag-Bag" for use in the farm's heifer ration. This marks the first time the farm has used the AgBag for any of their crops. Fortu- nately, tlrey had booked the machine and bag two months earlier in anticipation of abnormally wet corn. ~ For additional information and answers to ~ some pretty common questions this fall turn to pages 7-13. MSU dairy, swine, and beef nutritionist have compiled some data you may want consider in your feed manamgent decisions for the coming year. Michigan Corn Harvest - Market and Storage Strategies: pages 6 - 13 Mic~igan Corn Information Exchange List: page 15 . December 18, 1992 In Brief ... Unleashing Wheat Not To Enter Reserve Agriculture's Agriculture Secretary Ed Madigan announced that 1992 wheat will not be allowed to enter the farmer-owned reserve (FOR). Madigan was required to make the deternlination by Productivity Dec. 15, but made the announcement early because it was clear the conditions for entry into the FOR would not be met on the 1992 crop. and Potential The law requires the secretary to open the reserve when the average wheat price drops below 120 percent of the wheat loan rate for 90 days preceding the announcement and the (Excerpted from President's Address at estimated wheat ending stocks-to-use ratio is more than 37.5 percent. If either one of the MFB Annual Meeting) conditions is met, the secretary may open the reserve, if both are met, he must. But in the There is a tremendous challenge ahead of us in agriculture. Demand for food is case of 1992 wheat, neither condition will be met, so there is no authority to allow entry going to continue to rise in tandem with world population increases and greater into the reserve, according to a USDA release. affluence in the formerly impoverished nations of Eastern Europe. The agricultural industry can't afford to be a bound giant. Too much is at stake for us, and for the Late Corn Harvest Could Yield Shipping Problems people we feed here in the U. S. and across the world. The large volume of com and the weather delayed harvest could mean much of the com By the year 2020, I believe farmers will have to more than double the production of will have to be shipped by rail after the upper Mississippi River is closed to shipping by food in order to feed more people demanding better nutrition than ever before. In cold weather. The glut of com and lack of water transport could mean a shortage of rail some developing countries, food demand will increase as much as four percent a cars to transport the grain, especially if there is a surge in exports. year. Experts say more than half the U.S. com exports move down the Mississippi, but that upper Before the 20th century, almost all of the increase in food production came from tributary is expected to be closed by ice by the end of this month. The late movement of bringing more land into production. In the past 90 years, technology has helped grain from country elevators to ports may put a strain on available hopper cars. make productivity soar and more than keep up with population growth. One Of New Congres~' First Duties A Sorry One But, despite this record of success, can agriculture keep up with the explosion of demand that we see coming in the future? Can farmers contin.ue to boost their One of the first things the 103rd Congress will have to do is raise the ceiling on the national productivity to meet the food demands of the 21st century? I think we can. But there debt, if it doesn't want to avoid shutting the government down and defaulting on the are significant "chains" that have to be cast aside if we are to be successful. nation's indebtedness. First of all, environmental and land use constraints will make it more difficult to The government will reach its borrowing limit early next year and all those new members improve productivity in the future simply by adding inputs or putting more land into of Congress will have to join their free-spending colleagues in raising the limit no matter production. As aI/ of you well know, the environmental movement is strong, aggres- how hard they campaigned on getting control of spending and reducing the debt. The sive and beginning to target agricultural practices. Last year, contributions to present debt limit is $4.145 trillion. The debt level is currently at $3.980 trillion as of environmental groups hit $2 billion, double the amount they received in 1987. November 5, so the issue cannot be ducked beyond February or March, according to a Knight-Ridder report .. Before the election, the Gal/up poll reported that 57 percent of voting-age Ameri- cans wanted to elect politicians who would impose more environmental restrictions USDA Announces 1993 ARP Signup Dates on business. And 59 percent of the respondents, if forced to choose, would take environmental quality over economic growth. Right or wrong, consumers feel very The 1993 acreage reduction program signup for feed grains, wheat, rice and upland and strongly about the environment. extra-long staple cotton will be March 1 through April 30. On Sept. 29, the secretary announced 1993 ARP percentages of 10 perc~nt for com and 5 percent for grain sorghum. The second major hobble for agriculture is profitability. Unless we as farmers the ARP for barley, oats a~d wh~at were set at zero p~rcent. become more profitable, it's going to be difficult to maintain the vibrant agricultural economic base needed to meet the food needs of the 21st century. If we are to Food Labeling Differences Resolved respond to rising demand for our products, an investment is going to have to be made in research, marketing and production. Our industry can't afford to do that President Bush took a hand in the decision to put uniform labels on literally hundreds of unless it increases its profitability. thousands of food packages by 1994. The decision was due last month, but was held up when differences arose between the Agriculture Department and the Department of Health So what's the solution? I think that we as farmers must strive more than ever before and Human Services over how much information should be included on the labels. The to help ourselves. We are going to have to work smarter, not just harder, in order new labeling rule carries out the 1990 Nutrition Labeling and Education Act and will apply to be productive and "environmentally correct" in a complex world. One of the ways we can do this is by applying the fruits of biotechnology and expanding our knowledge instead of cultivated land. to all packaged foods regulated by the Food and Drug Administration. Consumer groups praised the new rule, calling it a victory for consumers over spe- ~ ~M_t_ Stat ..... nt of O __ ='~t ohlp. ,.,-.-- AIr'; j -r----~'--- --- g~LA~~~nt V.$C. :JU51 cial interests. Health and Human Services Director Louis Sullivan said the new label- lUdol ..... ~ - ~I I LU ........, , ~'-- M Il-W-Ir.l, 20 . $1.SO ing requirements will cost the food industry • - .......... --.- <- '- - ..... - about $2 billion, but he said the amount will • \. IUchl •• a 'ara ....... _ IW'•• ",. P.O. 10. )0960. ....... ...- __ Landl\'. Dl"cft Klchl,an .. _~_ 41909-'460 Michigan Farm Bureau be offset by the many billions of savings in health costs resulting from improved nutri- Late Payment Again Drops Russia's Credit Status tion. 1_._-1.......-..._ .. •• A. -.... Dean__•• luis'. •__ r.o. 1....... -Ie. )0960. lAa8lftl. Ktcbl,_ 41t09-t460 The USDA said it was notified by a'bank that Russia missed a payment deadline on U.S. The new rule is effective in 1994, but com- backed agricultural loans, thus automatically losing eligibility for more credit purchases panies are expected to begin switching to under the program, according to a Reuter news report. the new labels by the middle of next year. The new rule will define such nutritional If Russia makes a payment of the $4.5 million defaulted, it is automatically reinstated, the terms as light, lite, low fat and high fiber to ~.,--_.- ............... -..... ...... 0-- ___ department said. The bank said there was a chance the payment could be received in time become more accurately descriptive of the to avoid another suspension. The bank said it has been routinely giving Russia a 10-day content of those components in each item grace period before filing a late payment notice with the USDA. The U.S. government has and relate nutrient content to the average daily requirement, based on specified calo- • ::~ ~:::.::~~ ...=-~ ..:::==:..- .... 0=0...0.. ~",,=-,:.==,~-:,'::~l,:, ,.. ....,_on,..._ ... ,....,...__ ,..---t allowed the former Soviet Union more than $5 billion in food credits since the beginning ...- ... --. I __ _.._ .. C of 1991. ric content. "IUO 4I.~' ...... _ ..---....c .-..... 1' ... ......,._._. 1 _ tI'.-I __ u.n. The same requirements will apply to meats 44.U~ u.n. _= 44.US and poultry products regulated by the Ag- 0'_0.-......" ...-.- c:~ .....(_.0.-....-. ",(llIIo.-'_c- 2.1)) 2.700 riculture Department as for other packaged 41.J1O U.4U foods regulated by the Food and Drug Ad- ministration. Restaurant menus and indi- Gou pRrCh8Sfng vidual meals served at restaurants are ex- empt. ".uo "'.SO' 1992-93 EARLY WINTER STEEL SALE The MICHIGAN FARM NEWS (ISSN:0743-9962) is published semi-monthly except in the months of November, December, June, and July when only one issue is printed, as a service to regular members, by Michigan Farm High Quality Steel Replacement Parts Bureau, 7373 West Saginaw Highway, Lansing, M148917. Member subscription price of $1.50 included in annual dues of Michigan Farm Bureau regular members. Additional subscription fees required for mailing Michigan Farm Ne~~ to non~~emb~rs and outside the C?ntinental U.S.A. Second-Class Postage paid at Lansing, MI and . Dependable Performance additional mailing offices. Letters to the edItor and statewide news articles should be sent to: Editor, Michigan Farm News, P.O. Box 30960, Lansing, MI 48909-8460. POSTMASTER: Send address changes to: Michigan Farm News, P.O. Box 30960, Lansing, MI48909-8460. ~~ ':P~()~~" Group Purchasing SAVINGS! Editorial: Dennis Rudat, Editor and Business Manager. Staff Contributors: Mike Rogers' Connie Turbin' Donna Wilber; Henry Huisjen. ' , 'S-1>~ ~ December 1- January 8 Officers: President, Jack Laurie, Cass City; Vice President, Wayne Wood, Marlette; Administrative Director, Chuck Burkett; Treasurer and Chief Financial Officer, Tom Parker; Secretary, William S. Wilkinson. Directors: District 1, Jim Miller, Coloma; District 2, Blaine VanSickle, Marshall; District 3, Diane Homing, Manchester; District 4, Tom Quality • Dependability • Savings Guthrie, Delton; District 5, Mark Smuts, Charlotte; District 6, Wayne Wood, Marlette; District 7, Larry Snider, Hart; District 8, ~ic.hard Leach, Saginaw; District 9, Joshua Wunsch, Traverse City; District 10, Margaret Kartes, West Branch; Dlstnct 11, Robert Wah~hoff, Barag~. At-Large: Douglas Darling, Maybee; Jack Laurie, Cass City; Faye Contact Your County Office for Local Vendor Information or Adam, Snover; Jan Vosburg, Climax. Promotion and Education, Paul Swartzendruber, Pigeon; Young Farmers, • Kurt Inman, Sturgis. CaD 1-800-292-2680 ext. 2015 Michigan Farm News ITOL o -. December 18, 1992 o ::D Z m ::D Fuel Tax Local Wetlands Ordinances MFB Position: ~gislation, recently passed by the Legislature and signed MFB Position: S.B. 522 (S-3) and S.B. 807, sponsored by Sen. Wartner MFB was successful in mto law by Gov. Engler, was intended to reduce the possi- Farm Bureau was in- and Sen. Honigman, would allow local units of govern- having a proposal to elim- bility of fraud in the collection of the state's fuel tax. Un- volved in the work group ment to regulate wetlands within its boundaries, by ordi- inate the 2 percent evapo- fortunately, the new law has created confusion and raised that developed the com- nance, under certain circumstances. Both bills passed the ration allowance re- several unanswered questions. The needed detail for the promise in S.B. 522 (8-3) House on Dec. 3, and were concurred in the Senate the moved from the original new collection process is currently being clarified by the and strongly supported same day. bill. MFB also expressed Department of Treasury. both bills. Of importance to agriculture are the following provisions: concern regarding the Under the new law, off-road farm use is still exempt, but (a) The ordinance shall not provide a different definition change in taxation, and A special TIIANKYOU will continue to need documentation. Either separate stor- than is provided in the statewide Goemere-Anderson the additional paperwork to all Farm Bureau age for field and road use or a pump which will record the Wetland Protection Act. required to obtain re- members wbo con- funds. number of gallons pumped into farm tractors vs. farm (b) An ordinance shall not require a permit for uses trucks is required for documentation. tacted tbeir legislators on tbis issue. The pbone allowed without a permit by the state act. These uses MFB Contact: In addition, those farmers who hold a retail license will be calls from individual include farming activities such as plowing, irrigation, Ron Nelson, Ext. 2043 required to inventory volume on hand for highway use and farmers definitely made seeding, cultivating, minor drainage, harvesting, or pay road tax on that volume. A fanner may secure a sepa- a difference in tbe pas- upland soil and water conservation practices. rate storage facility prior to the end of the year and pay the sage of tbis legislation. Also exempted from permit requirements is the construc- road tax only on that portion used for highway use. Addi- tion or maintenance of farm or stock ponds, maintenance tional amendments are expected during the next legislative MFB Contact: of drains necessary for the production or harvesting of ag- session. Vicki Pontz, ext. 2046 ricultural products, and the construction of farm or forest roads. If a wetland is altered under the permit exemption, it shall not be used for a purpose other than farming with- Property Tax.Reform out a permit from the Department of Natural Resources. MFB Position: A group of 12 Legislators have developed a property tax re- None at this time form proposal that would remove voted millage as a source " MFB Contact: Ron Nelson, Ext. 2043 of funding for school operations. The 10-bill package and an additional two re~olutions would shift school funding to income tax and increase the Single Business Tax. In addi- tion, personal property would be totally exempt from taxa- IT'S SHOW TIME. tion. ICI Seeds is opening the research pipeline with hybrids like these. So if you're Income, tax would incrC?aseto 7.25 percent. Sales tax ready for something completely different see your ICI Seeds sales agent soon. Because these days, just as good isn't good enough. would increase from 4 percent to 6 percent, if approved by ,a vote of the people, and income tax would subsequently be reduced from 7.25 percent to 6 percent: The bills will die on Dec. 31 as the two-year session con- 8883 8700 cludes. It is anticipated that the bills, or the concept, will Setting the standard for stalk strength An exceptional hybrid from start to finish. and late season plant health in its maturi- Comes out of the ground strong, stays be reintroduced next session and receive significant consid- ty. 8883 is a tall plant type that is excel- healthy throughout the season and dries eration. The 12 legislators include both Republicans and lent for silage. If you're Tookin~ for a down fast. An attractive hybrid all season Democrats and thus, thebi-partisan effort is receiving hybrid with the strong early VIgor it takes long. to make it in reduced tillage, 8883 is ~some se"rious attention in Lansing. right for you. Numbm ldtnuty VlMII", 02543223 OIOOZICI Soods,lnc. Seeds Cl'M5 Vlsto Drift Pl\10 billsH.B. 5590, sponsored by Representative Wnr On MoiJlfs, Iowa S026S 15151222.1400 Harder, andS.B. 1058, sponsored by Senator McManus, re- For More Information 'main in the$enate Agricultural Committee. Due to the lim- itea session, 'ending Dec. 4, the bills were not reported out About ICI Seeds in Michigan Contact of committee and also will die at the end of the session. The bills as introduced adopt the Federal Pasteurized Milk Ordinance, which is the standard by which milk moves Kevin Doneth WesKinsey Tom Sharai across state lines. It includes lowering temperature to 45 Durand Coldwater Benton Harbor degrees, increases quality standards, more stringent residue standards, and penalty provisions for violations. 517-743-4826 517-278-8371 616-927-1363 Indications are the bills will be reintroduced early next ses- , sion to adopt the Federal PMO. Or Call ICI Customer Service 1-800-348-2742 AII-Terrain/Off-Road Vehicles MFB Position: H.B. 5793, introduced by Representative Muxlow, would Support allow a farmer to operate an ATY lORY for farm use within the road right-of-way without obtaining a license MFB Contact: for the vehicle. Currently, the vehicles are not licensed for Ron Nelson, Ext. 2043 road use and thus are not legal on the road. Provisions of the bill require operations by a licensed driver. 16 years of age, during daylight hours. Travel must be on the extreme right of the highway right-of-way if it's not practical to operate the ATY off the highway. H.B. 5793 moved to the Senate Agricultural Committee and because of limited session, ~as not reported out of committee before the end of the legislative session. Legislative Note Thursday. Dec. 4, was the last day of the legislati.v~ session ~or 1992. All bjJl~n.otconside~ed on that day will expire at the of 1992. No addltlonal seSSlOndays are antICIpated dunng December. The 1993 session convenes on Jan. 13, 1993. Michigan Farm Bureau (517) 323-7000 Michigan Farm News December 18, 1992 3D-Day Outlook - Expect Above Normal Temps/Precipitation With warmer and wetter than normal conditions during most $.--t of the month, November weather made field work impossible in many instances. An active storm track out of the southwest- ern U.S. through the Great Lakes area was largely responsible. ,--~ __ .: Because Michigan was largely in the middle of or to the east .. ~ of the main storm track, warmer than normal air was fre- quently transported into the state, resulting in precipitation mainly in the form of rain across southern and central sections, -J---~ and mixed liquid/frozen precipitation further north. By the end of the month, precipitation totals for the month were nearing 200 percent of the normal in some cases. For those waiting for the weather to allow field work once ~"l again, the outlook over the next couple of weeks is not encouraging. The same jetstream pattern that brought all the wet conditions and delays in November is forecast to continue at least for a couple of weeks in December. Besides the problems brought about by normal to above normal precipi- tation, above normal temperatures (especially during the day- ~ time hours) will keep topsoils unfrozen and largely unsuitable for any field work. The outlook for the remainder of December indicates above normal temperatures and above normal precipitation. The latest 90-day National Weather Service Outlook predicts that both temperature and precipitation will be closer to normal. Midwest Harvest - Water, Water Everywhere Michigan was reported as 55 percent good to excel- down from the five-year average of 99 Several dry days the first week of Decem- lent, down 5 percent from the previous percent. By area, only 69 percent of the Michigan and Major Commodity Area ber allowed anxious farmers an opportunity report. corn had been harvested in northern Indi- Extended Weather Outlook to harvest corn and soybeans in many areas ana, 80 percent in central areas of the state. T - Temp. 12/15 11/31 12/1 2128 of the state. Reports of wet field conditions, Ohio P - Precio. T P T P high moisture levels and low test weights Corn harvest is making moderate progress Illinois Michigan A A N N continue, according to the Michigan Agri- in Ohio, although it was well behind nor- Drier weather had given Illinois farmers a W. Corn Belt N A N N cultural Statistics Service. mal, due to wet fields in many areas of the E. Com Belt A A N N boost in efforts to complete corn harvest, Wint. Wheat Belt B A1N NIB N state. According to the Agricultural Statis- which stood at 88 percent complete, com- Spr. Wheat Belt N N N1A BIN Corn harvest was reported as 40 percent tics Service, 75 percent of the corn had pared with 100 percent in 1991 and the Pac. NW Wheat B B N N complete, compared to 100 percent last been harvested, compared to 100 percent in five-year average. Freezing weather Delta N A B N year, and the five-year average of 97 per- 1991. There were also reports of elevators should help complete harvest quickly. Southeast A1N A N A cent. Little field drying of the crop was closing early or altogether because they San Joaquin B N A BIN observed, and there were reports of mold were full. Most elevators are backed up Iowa and wino damage.' ' because of the drying ~ime required for this Wet fields and mud continue to make har- A-Above Average, B-Below Average, N-Nor- I ! I mal, MA-Much Above, MB-Much Below, NP- year's'dop with an'avenige moisture con- vest difficult, with reports of corn that" s No Precip. Source: National Weather Office Soybean harvest advanced to 90 percent tent now at 24.8 percent. Lodging was still standing, deteriorating in condition. complete ~tatewide, close to the 99 percent being reported in several areas, and mold Nearly 85 percent of the corn crop had been five year aver:age. The winter wheat crop was noticed in northeast Ohio. harvested, as compared to the 99 percent average. The most extensi ve harvest delays Indiana were in the southern 1/3 and east central Farmers were making slow but steady areas of Iowa. Strong winds had caused Serving Michigan progress toward completion of corn har- some damage, with heavy lodging reported vest, which has been hindered by wet on 3 percent of the acreage, and moderate Farm Families is_ fields, mud and lodging. Below-normal on 20 percent of the acreage. Slow harvest temperatures over the past week should did help ease a shortage in grain storage Our Only Business help field conditions as soils freeze. Corn space, with 38 percent of the reporters not- was 79 percent harvested as of Dec. 7, ing shortages of space. Since its beginning in 1971, Michigan Farm Radio Network's only objective has been to serve Michigan's farm families. This dedication to serve agricul- ture is shared by 29 local radio stations in Michigan. Through these sta- tions, Michigan Farm Radio Network provides the latest in market analysis, weather and news to Farm Bureau members daily on the following stations: Roots to Profitability. Station City Frsqusnqy Morning Farm Noon Farm WABJ Adrian 1490 5:45 am 12:15 pm WATZ Alpena 1450 5:30 am 12:15 pm I \\ WPZA Ann Arbor 1050 6:15 am 12:05 pm WLEW Bad Axe 1340 6:30 am 12:50 pm WHFB Benton Harbor 1060 * 12:30 pm WKYO Caro' 1360 6:15 am 12:45 pm WTVB Coldwater 1590 5:45 am *** Increase Wheat Yields WDOW Dowagiac 1440 6:15 am 12:15 pm Spring is the time to treat wheat with ACA WACY Fenton 1160 6:15 am 12:15 pm to gain your advantage. ACA can be used WGHN Grand Haven 1370/92.1 5:45 am 12:15 pm as a spring dormancy break application with WPLB Greenville 1380 6:15 am 12:45 pm your topdressing fertilizer to boost your yields. WBCH Hastings 1220 6:15 am 12:30 pm WCSR Hillsdale 1340 6:45 am 12:45 pm 1992 Yields WHTC Holland 1450 12:15 pm ACA-treated wheat had an average increase WKZO Kalamazoo 590 ** 12:15 pm of 10.76 bu/acre with the highest yield WJIM Lansing 1250 5:05 am 12:15 pm increase at 22.22 bu/acre. On farm yield increases in 1992 varied from 5.16 to WWGZ Lapeer 1530 * 12:15 pm 22.22 bu/acre. The four-year average yield WNBY Newberry 92.5 12:15 pm increase wheat growers have seen using WOAP Owosso 1080 6:15 am 12:30 pm ACA has been 8.53 bu/acre. WHAK Rogers City 960 7:10 am 12:15 pm WSJ St. Johns 1580 6:15 am 12:15 pm See the Benefits of ACA WMLM St. Louis 1540 6:06 am 12:20 pm Better root systems Increased Profits WSGW Saginaw 790 5:55 am 12:15 pm Heathier Plants Increased Yields WMIC Sandusky 660 6:15 am 12:45 pm Easier Harvesting Proven Performance WKZC Scottville 95.9 5:45 am 12:30 pm To see the difference apply ACA with WCSY South Haven 940 12:15 pm anhydrous, liquid 28% N, Liquid Starter, WKJC Tawas City 104.7 12:45 pm impregnated on dry or sprayed. WLKM Three Rivers 1510/95.9 6:15 am 12:15 pm WTCM Traverse City 580 5:55 am 12:40 pm Contact Your Local Clean Crop Dealer • Station signs on at different times during the year. Morning farm times change with or call 1..800-292-2701 sign-on times. •• Station airs various farm reports between 5:50 and 6:20 pm. for additional information ... Station airs various farm reports between 12:00 and 1:00 pm. on the ACA Advantage! Some stations cany additional market reports throughout the market day. Michigan Farm News December 18, 1992 MFB Annual Meeting Highlights Continued .... ,,, Ab~ve, Katrina Roy, a dele{Jate (rom M.acomb County Farm Bureau, makes a point durmg the four days of polley d!scusslon at th~ MFB annual meeting. In total, the 460 farmer-delegates took actIOn on 160 policy recommendations. Below, Gov. John Engler told MFB members to "fasten their seatbelts, " and expect changes. FPC - Getting Back to Basics The recent downsizing of Farmers Petro- leum Cooperative, Inc. (FPC), will allow it to better serve its member owners, and re- turn to its basic mission when the co-op was established in 1948, according to co-op President Jack Laurie. Laurie said the growth ofFPC over the years included direct delivery of fuel to farmers, purchase of local cooperative facilities to establish retail farm supply businesses in rural Michigan, and development of a sub- sidiary crude oil division. MACMA - Meeting the Challenge of Change "The business structure that evolved was one that put the cooperative in the very Michigan Agricultural Cooperative Mar- uncomfortable position of competing with keting Association held its annual meeting its own customers trying to be both a whole- as well, hearing reports from co-op Presi- saler and a retailer," said Laurie. dent Jack Laurie, and MACMA General Manager Randy Harmson. "The decision was made to spin off the highly risky crude oil business to generate Laurie said that MACMA had turned some cash in a growing, more traditional area - of the major challenges it faced during the the liquid petroleum gas supply business. • past year into opportunities by making changes. The growth of the propane business, plus the concern of how you can be a wholesaler and a retailer in the same marketplace, fi- "During the past year, our Feeder Pig Divi- nally led the FPC Board to the conclusion sion, recognizing a rapidly changing indus- that perhaps our niche in the marketplace try in both the areas of a preferred way of was, as the founders of this co-op had deter- marketing feeder pigs and the genetic mined, serving the independent cooperative make-up of the pig itself, continued to ex- wholesale market." pand its cooperative relationship with the Michigan Livestock Exchange and the Laurie said the decision to sell FPC's retail Feeder Pig Producers of the Indiana Farm centers to existing independent coopera- Bureau," explained Laurie. "Today our tives was a good one,and that FPC is posi- modem electronic marketing system offers tioned to be the regional cooperative that feeder pig producers yet another alternative can offer the support services that coopera- to successfully market their hogs." tives need - services that aren't available • The Cherry Division continued to work throughout the year with growers and pro- from any fuel supplier up and down the street. cessors to develop a program that can meet "There's no doubt that there's a place for a the needs of this extremely stressed com- Michigan-owned and operated regional co- modity in Michigan, Laurie told co-op operative in the petroleum farm supply members. "These needs not only include a changing consumer preference, product develop- ment, and market expansion, but they also include an awareness on the part of the growers and processors that a highly vola- tile commodity like red tart cherries needs some form of market and production stabil- HARRIS@ SEEDS HIGH QUALITY VEGETABLE AND FLOWER ity," Laurie said. "Stability will take some of the extreme fluctuations out of grower SEED FOR THE PROFESSIONAL GROWER returns and reinstate some financial integ- Nothiing fancy. No hard-~understand pricing schedules. Just high quality rity in the industry." ~ for your vegetable and greenhouse operations at very competitive pnces. And we back up our sales with the service that has made HARRIS SEEDS a company you can depend on, year after year. Laurie outlined some of the activities that MACMA has been involved in to meet the You can caJl tor your FREE copy of our 1993 Professional Bedding Plant and challenges of change, including helping the Vegetable Growers' Catalog: 716-442-0410 state's bedding plant growers to organize a research and promotion program, and a r-----------------, privatization - proposal submitted to the I NAME' I Michigan Department of Agriculture to I I allow MACMA to manage the fruit and I STREET I vegetable inspection service. He also re- OR RETURN THIS COUPON TO: ported on the development of a new Regu- HARRIS SEEDS I CITY I latory Compliance Assistance Program, 1. designed to provide current, up-to-date, P.O. BOX 22960 I STATE ZIP I ROCHESTER, NY 14692-2960 IL---- ..JI' critical environmental and labor regulatory 9311 information. I Michigan Farm News 11= December 18, 1992 •..... •••••••• ••••••• r• ••••••• . ••••• ~.rl .... 1• ......• ...:~ •••• fl ••• Wheat •••• .r•••••• ,j ••• .. Market Outlook Dr. Jim Hilker, Dept. of Agricultural There are not many positives in my view of the old crop wheat market. Russia is having trouble keeping up with loan payments, China is upset with us and will likely be E~RM•••••••• ~ ' ...:::-. •••••••• Economics, MSU Seasonal Commodity more upset with Clinton. Canada and the EC have large stocks like us, and winter BUSINESS Corn wheat conditions are fair for the most part. I show the corn market as bottoming; the Price Trends If you have a substantial amount of 1992 wheat left, consider selling it. OUTLOOK problem is, it may have a long bottom pe- If we do have an average or over crop, I riod. As shown below in Table I, the excess Wheat ? However, continue to monitor the 1993 wheat crop closely. There is no set-aside expect ending stocks will grow. This is not supply of corn this year will be about 26 to say I am bearish on new crop, but rather percent more than we need, despite the requirement for the 1993 crop and it does Corn BT? appear that plantings are up a couple of 1 can see a scenario with significant down- strong projected demand, due to the record side risk. On the other hand, expected end- size of the U.S. corn crop. And in Michigan, percent for 1993 with the zero versus 1992 as all of you are well aware, we have the Soybeans BT? 5 percent requirement. If you can lock in a ing stocks are still relatively tight, therefore, floor over $3.00 prices, consider it on a a wheat crop below expectation could be worst of both worlds -low prices and a poor quite bullish. crop. The poor crop comes in one of two Hogs -I • portion of your expected crop. forms, low yield/low quality or decent yield/poor quality. 'Cattle --1 Soybeans There is no clear choice of pricing tools At this point, there is both more downside call option. The futures market does not given the poor quality. The choice needs to i Index: = Higher Prices; ~ = Lower Prices; risks and upside potential with soybeans appear willing to pay commercial storage. be made by lining up the alternatives and TP= Topping; BT= Bottoming; ? = Unsure than with corn. This is because projected Remember, you do not have to buy the call picking the best one. The first two factors ending stocks are not as big a negative factor option to replace your cash at the same time are, do you have on-farm storage, and, if and we have the South American crop to you sell cash. You can purchase it later if you do, can you store it without large stor- damentally, the futures markets are about you feel the market may drop for a while watch all winter. At this point, it appears age losses? No on-farm storage or unstor- where you would expect. Argentina's crop will be in the range oflast first. able com means cash sales. year's, but the Brazilian crop looks like it Those with on-farm storage and storable For those with soybeans stored on-farm could be significantly bigger, both in terms Some elevators are offering January prices, com (if there are any) have more alterna- where your storage costs are only around 2 of acreage and the fact that planting and which would more that offset commercial tives to consider. Both the basis relative to cents per month, the call gets a little harder. early growing season conditions have been storage rates; check those out. The problem on-farm storage costs and the spreads be- At this point, the market shows it will pay good. is they may not be willing to store it if the tween futures contracts say the market is on-farm storage, but it won't take a lot more quality is too poor. If you are forced to sell willing to pay storage. tightening before it will be time to sell cash For those with commercially stored soy- it as you bring it out of the field, check beans, consider selling some on rallies, es- and use some of the above methods to stay around. Drying rates and discounts could be There are several ways you can take advan- in the market. At this point, there are pecially if the basis continues to narrow continuously changing as the elevator's tage of this. One way is to store and wait to sharply. If you want to stay in the market, downside risks. A portion of your soybean needs change. price. At this point, it appears the basis will crop should be sold by this time and/or have consider doing it with a basis contract, a tighten 25-30 cents by July. Your returns to minimum price contract, or purchasing a a floor under it. If you fall into the sell cash now or soon storage would be the tightening minus your category, that does not mean you have to be storage costs, which is mostly lost interest. out of a possible market rally between now This alternative would be at least a break- Hogs and July. However, we do need to be real- even proposition as long as the futures do istic about the chances. not drop more than your expected returns I, along with most everyone else, have also ity of seeing some prices under 40. While to storage, which is unlikely. been under-estimating hog prices. And de- summer prices may give some relief, fall You could stay in the market with perhaps spite that, I feel the futures market is over- prices are likely to go back to the same a basis contract, a minimum price contract, Another alternative would be to hedge; this estimating hog prices in all the out con- range. buying futures, or buying a call. The prob- would be a method to lock in your returns tracts. So unless the futures have collapsed lem is that they all depend on a rally in the to storage regardless of what the futures since Dec. 7, there appears to be some good Watch for the Dec. 1 USDA Hogs and futures markets. None of them give you the market does, but you forfeit any gains due forward pricing opportunities relative to Pigs Report to be released on Dec. 30 at benefits of a tightening of the basis. We lost to a rally in the futures. Compare the re- the way I see the fundamentals. 3 p.m. I will discuss it in the next issue, that alternative by being forced to sell cash. turns of a hedge with a forward contract which you will receive in mid-January. A rally in the futures market will depend on and a hedge-to-arrive with an elevator. If Check it out for your situation. At this time, While it will still be very relevant at that a weather rally next spring or summer, and they are comparable, it would eliminate I would expect first half 1993 prices to be time, it is important that you get some you probably have at best even odds. Fun- possible margin calls. in the low 40's with a significant probabil- analysis as soon as possible. Table 1 Table 2 Table 3 Supply/Demand Supply/Demand Supply/Demand Balance Sheet For Balance Sheet For Balance Sheet For CORN WHEAT SOYBEANS USDA Hilker USDA Hilker USDA Hilker Proj. Proj. Proj. Proj. Proj. Proj. 1990-91 91-92 92-93 1990-91 91-92 92-93 1990-91 91-92 92-93 Corn Acreage (MillionAcres) Wheat Acreage (MillionAcres) Soybean Acreage (MillionAcres) Acres Set-Aside and Acres Set-Aside and Acres Planted 57.8 59.1 59.1 Diverted 6.3 4.7 3.5 Diverted 3.2 10.0 3.5 Acres Harvested 56.5 58.0 58.1 Acres Planted 74.2 76.0 79.3 Acres Planted 77.3 69.9 72.3 Bu.lHarvested Acre 34.1 34.3 37.3 Acres Harvested 67.0 68.8 72.2 Acres Harvested 69.4 58.1 63.1 Bu.lA. Harvested 118.5 108.6 129.3 Bu.lA. Harvested 39.5 34.1 39.0 Stocks (MillionBushels) Beg. Stocks 239 329 278 Stocks (MillionBushels) Stocks (MillionBushels) Production 1926 1987 2167 Beg. Stocks 1345 1521 1100 Beg. Stocks 536 866 472 Imports 2 3 2 Production 7934 7474 9329 Production 2736 1981 2459 Total Supply 2167 2319 22447 Imports 3 20 10 Imports 37 38 50 Use: Total Supply 9282 9016 10,439 Total Supply 3309 2885 2981 Crushings 1187 1254 1265 Use: Use: Exports 557 685 730 Feed 4669 4897 5200 Food 796 785 835 Seed, Feed and Food/Seed 1367 1434 1485 Seed 90 94 98 I 489 259 Residuals 94 102 102 Total Domestic 6036 6331 6685 Feed 250 1137 Total Use 1838 2040 2097 Exports 1725 1584 1600 Total Domestic 1375 1183 1068 1275 Ending Stocks 329 278 350 Total Use n61 7915 8285 Exports 1275 Ending Stocks, Ending Stocks 1521 1100 2154 Total Use 2444 2413 2458 Percent of Use 17.9% 13.6% 16.7% Ending Stocks Ending Stocks 866 472 523 Percent of Use 19.6% 13.9% 26.0% Regular Loan Rate $4.50 $5.02 $5.02 Ending Stocks Regular Loan Rate $1.57 $1.62 $1.72 Percent of Use 35.4% 19.6% 21.3% Regular Loan Rate $1.95 $2.04 $2.21 U.S. Season Average $5.00- U.S. Season Average $1.80- Farm Price.S/Bu. $5.74 $5.60 S5.40 Farm Price.S/Bu. $2.28 S2.40 S2.20 U.S. Season Average $3.00- Source: USDA & Hilker Source: USDA & Hilker Farm Price. S/Bu. S2.61 S3.00 S3.40 Source: USDA & Hilker Michigan Farm News -. December 18, 1992 Ii Corn Harvesting & Marketing - Evaluate Your Alternatives by Gerry Schwab, Roger Betz, and Roy Black, Michigan Sta~e University Factors in this table are adjusted for mois- ture and for lower feeding value measured pounds per bushel, 15.5 percent moisture or 3. Harvest ASAP and Store - To pursue less, 3 percent or less of broken com foreign this option, your implied marketing strategy by total digestible nutrients (TDN) associ- material (BCFM), and damage allowance is that either the basis will narrow and/or the Introduction ated with lighter test weight com. By way of 5 percent. market price will increase. If one or both That feeling of satisfaction and accom- of example, consider a load of HMC com events occur, your returns to storage should plishment that accompanies completion of weighing 7,000 pounds. Divide by. 56 Because 1992 produced com has not been be positive. A check of market advisory fall harvest has yet to be felt by many pounds per bushel, and you have 125 bush- meeting these standards, high shrink adjust- resources including this newspaper will pos- Michigan com growers. Moisture levels els of com on a wet weight basis. If the com ments for moisture and possibly BCFM sibly provide some insights as to the proba- remain high in the com grain and in the soil has 30 percent moisture and a test weight of plus price discounts for low test weight and bility of success for this strategy. Your mon- profile. Many growers continue to push on 48 pounds, the calculated adjustment factor damage, in addition to high corn drying etary cost of storage and the risk of physical the com harvest as fast as dryer capacity from Table 1 is 0.7956. Multiplying the expenses, will be the reality. Because of the deterioration or spoilage are critical in eval- and field conditions permit. 7,000 pounds by 0.7956 gives 5,569 pounds large variation in grain trade practices as to uating this alternative. (or 99.45 bushels) equivalent on an 85 per- how all these practices are implemented, a Moisture vapor clouds hang over the dryer cent dry matter standard. basic recommendation is to evaluate alter- 4. Delay Harvest to Spring - indicating the high amounts of moisture native grain marketing sites as to their cur- storing com on the stalk until April may not being burned off by purchased gas energy. Using a previously negotiated price of $.03 rent practices and do some comparative appeal to the majority, but in this most un- The question being raised with this article per pound of 15 percent moisture com (or shopping. Request that your potential grain usual year is an alternative that ought to be is the need to identify and evaluate the $1.68 per bushel), the 7,000 pound load of buying station provide you a statement explored. In Table 2 in the column labeled economics of other com harvest and mar- HMC com is worth $167.08. This price illustrating the net return for a representa- Example II is our attempt to explore the keting alternatives. would be equivalent to $0.024 per pound of tive sample of your com. economics of this alternative. 30 percent moisture com bought on a wet " Selected Alternatives weight basis. The worksheet presented in Table 2 in the column labeled Example I illustrates a rep- The intent is to determine the break-even 1. HIGH MOISTURE CORN - Harvest amount of damage that could occur and still The Michigan Com Information Exchange resentative example for calculating net re- remain at least as well off given the assump- as soon as possible (ASAP) and sell high (MCIE) being coordinated by MSU' s Coop- turns to the com after marketing and drying tions about field drying and increased dam- moisture com (HMC) to livestock produc- erative Extension Service and Michigan expenses. Quantity adjustments for mois- age to the grain. For our example, 5 points ers who can feed this product. The most Farm Bureau should facilitate this farmer- obvious attraction to HMC is the avoidance ture using a pencil shrink factor of 1.3 or 1.4 of moisture were assumed, which we be- to-farmer alternative. Copies of this list are common. lieve to be conservative if harvest is delayed of com drying expenses and the storage should be available through all MSU CES risks associated with physical deterioration until April. The bottom line (Line 17 in offices and county Farm Bureau offices and Our example also illustrates a quantity ad- Table 2) indicates a return of $177.50 per of a lower-than-normal quality product. the Michigan Fann News. Prices being quoted may, at first impres- justment for BCFM being higher than the acre or an increase of $41.93 over the De- elevator standard. Price discounts for low cember harvest and sell alternative. sion, seem unreasonable but recognize the 2. Harvest ASAP and Sell Dry Corn - The amount of water that is included in the 56 test weight and high damage may also season is late and the psychological pressure occur. Our example uses a 1.4 shrink factor What is not yet included and needs to be pound bushel of HMC. is on to complete the harvest. Unfortunately, for each point of moisture and BCFM not solved for is the tolerable amount of the field the com produced in 1992 is a far different meeting the elevator standard. (See lines 7 losses due to wildlife and ear droppage. By Table I presents adjustment factors that are product from that produced in 1991. Grain helpful in determining a price for HMC. and 8 in Table 2.) Additionally, the price dividing the net difference of $41.93 per standards define U.S. grade #2 com as 54 received is adjusted downward because of acre by the net price received in April per damage and low test weight. (See lines 12 bushel of ($2.16 - 0.30 drying cost) $1.86; Table 1: Com AcUustment Factor for Moisture and and 13 in Table 2.) the tolerable field loss to make this alterna- Total Digestible Nutrients (TDN) tive break-even with the December harvest Using the same 7,000 pounds of com from is 22.5 bushels of corn. the previous alternative, the net return after TON drying costs of 3 cents per point of moisture This amounts to a break-even loss of 23.5 Test Wt TONI Moisture Percentage in Coro2 removed is lower even though the initial bid ADI percent. If the dry down rate is increased to (lbs/bu) (%) Factor1 18 22 26 30 34 38 price of $2.00lbushel was much higher than 10 moisture points, the tolerable field loss the $1.68 in the HMC example. increases to 39 bushel or nearly 40 percent. 40 90.7 0.940 0:9021 0.8579 0.8137 0.7694 0.7252 0.6809 Table 2. Calculating Com Returns after Shrink and Price Acijustment 42 91.3 0.953 0.9146 0.8698 0.8249 0.7801 0.7352 0.6904 Unit Elev. Mkt. Std. Example I Example II 44 92.0 0.960 0.9213 0.8761 0.8310 0.7858 0.7406 0.6954 December Harv. 1. Harvest Price (Sjbu) April Harvest 2.00 2.30 .' 46 92.6 0.966 0.9271 0.8816 0.8362 0.7907 0.7452 0.6998 2. Moisture (%) <15 30 25 3. Test Weight (lbs/bu) >54 48 50 48 93.2 0.972 0.9328 0.8871 0.8414 0.7956 0.7499 0.7041 4. BCFM (%) < 1.5 4.5 4.5 5. Damage (%) <5 6 8 50 93.9 0.980 0.9405 0.8944 0.8483 0.8022 0.7560 0.7099 Ouantitv Adiustment 6. Lbs Wet Corn 7,000 6533 52 94.5 0.986 0.9463 0.8999 0.8535 0.8071 0.7607 0.7143 7. Moisture Shrink 0.9530 0.8595 0.8128 0.7661 0.7193 (1.4% per 1.0% (%) 54 95.1 0.993 0.9063 21 14 above Mkt St (lbs) 1470 915 56 95.8 1.000 0.9597 0.9126 0.8656 0.8185 0.7715 0.7244 8. BCFM Shrink (1.4% per 1.0 (%) 4.2 4.2 0.9693 0.9218 0.8742 0.8267 0.7792 0.7317 above Mitt Std) (lbs) 58 96.4 1.010 294 274 1 TON and Adjustment Factors from paper entitled "Does Test Weight Influence the 9. Shrink (Ibs) Nutritional Value of Com?" A.S. Mimeo 266, by S. Rust et. a1. 1764 1189 2 10. Dry Pounds Moisture shrink calculated using formula below where standard is defined as 85% Dry Matter 5236 5344 (OM), 15% moisture 11. Dry Bushels 93.5 95.4 (Line la/56 Ibs per bu) .. [ [ % DM in Standard ] _ .005 dry mailer shrink adj ] Price Adlustment Ad] factor for mOIsture = % Moisture Standard 12. Damage Discount Market Outlook Continued ... (S.02 per point above Mitt Std) 0.02 0.06 Cattle Test Wel2ht Adiustment E My advice to feedlots is to keep very cur- not in the futures prices. The futures mar- 13. (S.OI/lb to 50 Ibs & rent; the fed cattle market we have seen the kets have already discounted for the above S.02/1b after 50 Ibs) 0.08 0.08 past month has been stronger than expected discussion. Fundamentally, the futures 14. Sale Price (Sjbu) SI.9 $2.16 and prices are expected to drop $2-3 per prices through October seem reasonable. cwt. early in the new year. Part of the IS. Gross Sales ($) 177.65 206.13 stronger than expected prices has come This is somewhat different than has been (Line 11 x Line 14) from the demand side, and I have no reason typical the last several years where the mar- Ontu Cost not to believe that will continue. ket was generally below what expected supply and demand would imply, and then 16. Dry Cost/Point Moisture 0.03 However, on the supply side, fewer. are the prices would increase over time as we (S.03jbu X # dry bu X coming to market than expected gIven approached the contract. points moisture removed) early summer placements. Unless the on- (Line 16 X Line 11) $42.08 $28.63 Because of that, there were seldom any X (Points Moisture Removed feed reports were significantly ?ff ~ase ~e good forward pricing opportunities. That as indicated on line 2) see more of a year-to-year mcrease m slaughter the first quarter of 1993. isn't always the case today; in many in- 17. Net Dollars Per Acre after stances the futures will allow you to lock in Marketing Costs When I talk about a decrease in cattle prices break-even or above prices. (Line 15 - Line 16) $135.57 $177.50 I mean in reference to today's cash prices, Michigan Farm News Guidelines on Buying High Moisture Shelled Corn •• December 18,1992 3. How will you base price? Routinely it's current market has been in the $1.75 - $1.90 [(1.00 - .219) x 47,458] x $1.75 divided by Compiled by Jerry Lindquist, Osceola based on the market price of dry com at 15 per bushel range in central Michigan. If you 56 = $1,158.27 value of truckload of com. County CES Director and Dr. Roger percent moisture with the HMSC price ad- have a method to determine corn test Brook, MS UAg Engineering Department justed to an elevator's shrink table (see weight, you may agree to discount the mar- $1,158.27 + ($2 per loaded mile x 90 miles) Table A). ket price if the test weight is below 54 (see = $1,338.27 delivered price. Many farms will be short of shelled com Table B). Other possible discounts are for this year in northern Michigan, while many 4. Can you offer some guarantee of pay- foreign matter and kernel damage, mold, or $1,338.27 divided by 23.7 tons (47,458 cash crop farm operations in Southern ment? Understand that many farmers get sour smell. Ibs.) = $56.47 delivered price per ton at 30 Michigan have com that cannot possibly all nervous when they deliver $20,000 worth percent moisture. be dried. of com to a person they don't know and 2. Determine actual com moisture. may never meet. Some farmers are getting With the use of the Michigan Com Informa- a guaranteed note from their lender up to a 3. Determine delivered wet weight of truck tion Exchange program, many of those set dollar amount. Others are setting up an load from the trucker's certified scale re- farmers may be trying to sell their com to escrow account with a third party like a ceipts. Northern Michigan farmers as a way to lender to draw out as com is delivered. market some of their crop. The question 4. Then use the following equation: then becomes one of how to establish a fair 5. Ask the grower if there is a mortgage on market price for high moisture shelled com the crop, and if there is, how the payment (1.00 - elevator shrink factor from Table A) (HMSC). should be handled. This could avoid legal x delivered wet weight divided by 56 complications for yourself. (which is the weight of dry com per bushel) When negotiating a price with a cash x market price of dry com per bushel = crop farm, determine: 6. Determine pricing for trucking, routinely value of truckload of com. 1. How much com you wish to purchase? $2 per loaded mile or $.20 - $.25 per wet Normally quoted in wet bushels (call the bushel. Here is an example: 47,458 pounds of wet Extension office if you need to know silo com delivered at your agreed market price capacity). How To Determine Price For Delivered is $1.75 per bushel for 15 percent moisture HMSC: com. The com is 30 percent moisture and 2. What is the maximum com moisture per- 1. Before delivery, agree to a fair market trucking will be $2 per loaded mile, deliv- centage you will accept? For example, price for 15 percent moisture com. The ered from 90 miles away. nothing above 30 percent moisture. cd COMPANY 50 GOOD, PEOPLE CLINGTOU5 FOR LIFE Table Egg Market Why do so many Michigan familiesstay Allan Rahn and Henry Larzelere with us year after year,decade after decade? Table egg prices in early December are trad- Because Farm Bureau Life Insurance ing in the upper 70 cent range, around 3 Company of Michigan has the financial cents per dozen under a year ago. strength and stability to guarantee familysecu- These prices reflect a late year rally in which rity for generations to come. egg prices have sharply advanced from a We are the only Michigan-based com- mid-October level of 64 cents per dozen, 11 pany to make the latest list of America'stop 50 cents under year ago levels, to their current outstanding inSurers,as prepared by Ward trading levels. Layer feed costs have been FinancialGroup. Basedon five-yearresults, reduced around 2 to 3 cents per dozen due Farm Bureau Life was praised for attaining to lower feed ingredient prices, especially superior financial performance without sacri- com. ficingsafetyand security. The egg-type chick hatch in October was 6 Our investments are safe and secure (we percent under last year's, and the number of have never purchased junk bonds) and our egg-type eggs in incubators on Nov. 1 was yieldshave outperformed the life insurance down 19 percent. This continues a trend industry averagein six of the last sevenyears. toward reducing the flock size and reducing Farm Bureau Life has receivedthe A+ production, but the current laying flock re- (Superior) rating from the AM. Best Com- mains above year ago levels and table egg production in October exceeded last year's pany everyyear since 1976, one of only a few by 2.6 percent. lifeinsurance companies so honored. When you want to protect your family, Producers have reduced hen slaughter rates build a collegefund, or create a lifetime retire- as prices have strengthened, which implies ment income, just call your local Farm Bureau higher induced molting rates and also that Insurance agent. the average age of the flock will be increas- We're the company you can depend on ing. As the flock gets older, their productiv- for life. ity will also decrease. Table egg prices during the first quarter of Making your future more predictable 1993 are expected to average in the low 70 cent range. Typical seasonal price move- ... FARM BIJREAIJ ment patterns suggest that prices during •• _~ 'NSIJRANCE February will be below the average for the , ... ..".., oIIlIII\Yll • ,aMI ...... Uft ...... ......, ~ • " ...,.n quarter, but that January and March price levels will exceed it. Michigan Farm News . m Disaster Designation Granted November Farm Prices Down Slightly •• December 18, 1992 to 62 Michigan Counties The Index of Prices Received by farmers in Michigan for all products as of November The October Index of Prices Paid for Com- modities and Services, Interest, Taxes, and USDA Secretary Edward Madigan has In addition, another 32 counties were des- 15, was 130 percent of its 1977 base, ac- Farm Wage Rates was 192 percent of its designated 30 Michigan counties as primary ignated as contiguous disaster areas, in- cording to the Federal/State Michigan Ag- 1977 average. The index was unchanged disaster areas, based on damage assessment cluding the following counties: ricultural Statistics Service. The November from July 1992, but 1.6 percent greater than reports due to multiple extreme weather Akona Leelanau index was one percent lower than last October 1991. Lower feed grain, mixed ~, conditions in the 1992 growing season. Arenac Lapeer month's level of 131, but five percent feed, fertilizer, and gasoline prices were Berrien Marquette higher than last year's index of 124. offset by higher tractor, combine, feeder The designations will allow "family-sized" Calhoun Missaukee pig, and diesel fuel prices. farm op~rators in both primary and contig- I Charlevoix Montomorency The price index for all crops in Michigan uous counties eligible to be considered for Cheboygan Oakland fell one percent from its October leve.1.Feed low-interest emergency loans from FmHA, according to USDA. Clare Ogemaw grains and fruit both fell one percent from a EPA Reportedly Eases Crawford Oscoda month ago, led by corn and apples, which Eaton Saginaw were down seven percent and five percent Rules For U.S. Pesticide The primary counties include: Gratiot St. Clair respectively. Hay rose six percent; potatoes Safety Testing Allegan Lake Ingham St. Joseph and winter wheat were both up five percent Antrim Livingston Iron Shiawassee from last month. The Environmental Protection Agency has Baraga Macomb Isabella Washtenaw eased guidelines for pesticide safety testing Barry Manistee Jackson Tuscola The livestock and products index remained by dispensing with most field tests on birds Benzie Mason Kalkaska Wayne unchanged from a month ago. Egg prices and fish, according to the Associated Press. Cass Mecosta Keweenaw Wexford rose 34 percent from October, while slaugh- Environmentalists criticized the move as a Clinton Montcalm ter cows and hogs fell 8 percent and 5 per- concession to the pesticide industry that Genesee Muskegon Each applicant will be considered on their cent respectively. own merits, taking into account the extent could adversely affect human health. Gogebic Newaygo Grand Traverse Oceana of the losses, security available, repayment Nationally, the November All Farm Prod- ability, and other eligibility requirements. The EPA said the move would speed test- Houghton Ontonagon ucts Index of Prices Received by farmers, at ing, allowing more pesticides to be evalu- Ionia Osceola Local FmHA county offices can provide 137, was 1.4 percent below October. Price affected farmers with further information ated and more potential hazards to be dis- losco Otsego declines for cattle, tomatoes, grapefruit, and covered. EPA denied the change involved Kalamazoo Ottawa and assist them in completing applications lettuce more than offset price gains for or- for assistance. any political considerations. Kent Van Buren anges, eggs, strawberries, and wheat. YOUR MICHIGAN NORTHRUP KING SEED DEALERS City Dealer Phone No. Alicia Con Agra Berger & Co. 517-770-4130 J;I Alma McClintic Farms 517 -463-1140 Alto Alto Farm Services 616-868-6030 Ann Arbor Strieter Bros. 313-995-2497 Bancroft Gerald Cole 517-634-5212 - Belding Birch Run Jerry Gallagher Con Agra Berger & Co. 616-761-3243 517-624-9321 • Breckenridge B&WCo-Op 517-842-3104 Carson City Harvey Milling Company 517-584-3466 ... ( Conklin Arends Farm Service 616-899-2136 Constantine Ron Weston 616-435-8219 Corunna Clyde McLosky 517-743-3633 Dimondale John Oakley 517-646-0629 Dorr Dorr Farm Products 616-681-9570 Dowagiac Harold Grabemeyer 616-782-8744 Dowagiac Joe Van Tuyle 616-782-8275 Homer Tri-County Agra Services 517-542-3196 - "I Lake Odessa Litchfield Mark Erickson Blondes Farm Supply 616-374-8538 517-542-2996 Now there's a new alfalfa blend with a feature Merrill Con Agra Berger & Co. 517-643-7293 0P you'll really appreciate: r~~able history 919 MF ~rand Middleton M.A.C. 517-236-7263 Alfalfa is the newest addItIon to the Northrup King 313-269-2710 Monroe Calvin Smith 919 Brand family of alfalfa blends that growers have New Lothrop Anderson Fertilizer Services, Inc. 313-638-5868 relied on for years. 919 MF is probably the best 919 New Lothrop Bob Hajek 313-638-5281 blend ever.It's a combination of trifoliates with multi- Owosso Anderson Fertilizer Services, Inc. 517-723-5205 pIe pest resis~nce an~ alfalfas with th~ multi-foliate , Portland Reading Frank Trierweiler Dick Heffelfinger 517-587-6540 517-283-2444 trait. EconOmIcally prIced, too. For reliable perform- ance, 919 MF Brand. Richmond Rockford Saginaw Farmers Elevator Ron Porter Seamon Farms 313-727-3025 616-874-8196 517-777-2054 New 919@MFBrnndAlfalfa. Silverwood John Ferkowicz 517-761-7217 Sunfield Mueller Bean Co. 517-566-8031 APP A Sandoz Seeds Union City David laBar 517-741-3204 Company Vestaburg Con Agra Berger & Co. 517-268-5300 Zeeland Farm Services 616-772-9042 NORTHRUP KING Zeeland Michigan Farm News II. December 18, 1992 Storage and Feeding of High Moisture Corn Herb Bucholtz - Dairy Nutrition Harlan Ritchie - Beef Nutrition acid is absorbed into the grain, it's less Q. What moisture ranges can com be stored at? Dale Rozeboom - Swine Nutrition corrosive and will not harm feeding equip- ... Steven Rust - Beef Nutrition DeparlmentofAnimalScience Michigan State University ment. Companies supplying the acids do not rec- , "- ,'~ -< ',' "), "'" "f?' "'I ::,,~~,;'~T; ? " 'u X B;" ~"~" ".'twll[til"~,jij;*,!f'iHm('i(ru;;i,:~ji;'("' "ill- \lHtH ':.' ""%i\, ,'. ' !~f,;,yt;%,. ~..a6/ e,.~", "jYr;~;1;1j '/1:{0', :::, { <:' ," -,',h::d:;:;E:'r~,' - '''' ;,/',!< '(" ',' > . , ., " ommend storage of the treated grain in up- right silos. There is a tendency for moisture ... omi1i~Je"}lliiityr~'pei:'gen'tties'. .'. ,~~ The 1992 com harvest has been delayed to migrate, dilution of the acid and forma- because of excessive kernel moisture and tion of "hot spots." Recommended storage ~:l'i,{<:;' : " wet field conditions. Moisture levels have includes bins, bunker silos, plastic tubes, or been reported as high as 45 percent in sev- piles on hard surfaces. eral cases. Livestock farmers have been asking a number of questions concerning Pure acids are least expensive, but more the harvesting, storage, and feeding of this difficult and hazardous to work with. year's com grain as high moisture com. Buffered acids, which are less corrosive, are Following are some commonly asked ques- available but more expensive. Estimated tions and answers concerning the effect of costs for grain treatment range from $.25 to com grain moisture. $.75 per bushel for 1.75 percent propionic acid added to 40 percent moisture com. Harvesting Two suppliers of the acid include: Kermin Industries, Inc. and Storage Des Moines, IA Q. What are the consequences of kernel (515) 266-2111 damage? American Farm Products A. High moisture com going into storage Ypsilanti, MI at kernel moistures above 35 percent will (313) 484-4180 result in the kernels cracking during me- chanical handling (augering and blowing into storage). This breakage of the kernel will cause more of the starch to be exposed as fine particles. The starch in fine particles is more soluble and will ferment very rapidly in the rumen. This rapid starch fermentation can result in a more acidic rumen environment and po- tentially cause rumen acidosis and diges- tive upsets. Cattle that consume in excess of 18 pounds of high moisture com (dry matter basis) per day are more susceptible to digestive disor- ders from wet com. Kernel cracking during harvest should not affect the performance of finishing swine fed HMC. Q. Should rolling or grinding before stor- age be performed? A. Rolling or grinding HMC before stor- age is often done, but with com above 35 percent moisture, it may not be necessary. If rolling or grinding is traditionally done or is being considered, check the extent of kernel cracking and the amount of fines appearing first. With moisture levels of 35 percent or more, normal combining, auguring, and blowing of the grain will probably crack or break the kernels sufficiently for adequate air exclu- sion and fermentation. Q. Should a microbial inoculant be used to ensile HMC? A. Microbial inoculant have demon- strated small and variable effects on preser- vation of ensiled HMC. As with other si- lages, inoculant tend to reduce pH faster and increase lactic accumulation. Unfortu- nately, this does not necessarily increase dry matter recovery or bunk stability. Based on recent MSU research on com under 35 percent moisture, wet com inocu- lant appear to be of limited value. Q. Can propionic acid be used to preserve wet com? A. Use of propionic or propionic/acetic Brochure Request Form acid mixtures have been extensively re- searched for grain preservation. Acids Please send, without obligation, the detailed information for the tours indicated below lower the pH quickly and limit microbial activity. Moisture content and length of o o o o o o o o storage should determine the amount of Panama Australia Georgetown Scandinavian England, Ireland European Heritage Copenhagen Plus acid to use. HMC containing 40 percent Canal Cruise New Zealand Home Tour Capitals & Scotland & Wales Adventure Tour of America moisture and stored for 6 months would Russian Grandeur need 1.75 percent acid. If the desire is to increase the length of storage, for each ad- (Please Print) (Please Mail to) ditional month and additional 3 percent, Nonu! Member TraHl Se",ke. more acid is required. P.O. Ben 30960 Laming, Ml 48909 Acids are potentially corrosive metals, es- oreaU pecially galvanized metal. It is recom- 1-800-292-2680 mended practice to wash equipment (i.e. eza.3067 augers, etc.) that were in immediate contact with the acid during handling. Once the Michigan Farm News December 18, 1992 Storage and Feeding of High Moisture Corn O. Will Feedout Procedures Need To Be Altered With Wet HMC? O. ~e Can Corn Be Dried to 30 Percent Be- Ensiling? III A. HMC with low dry matter is less stable, A. It's unclear how beneficial this strategy • meaning spoilage will begin sooner at the exposed surfaces. Approximately 3 to 4 inches of grain must be removed daily to would be. The authors are unaware of any research trials evaluating this practice. Par- tial drying will have only marginal benefits I prevent spoilage at the surface. This is par- in reducing ration moisture. I ticularly true in milder weather when tem- I' peratures are 70 degree F or greater. For instance. a diet with 50 percent haylage at 50 percent dry matter. and 50 percent II O. Will a Dry Corn Wet Corn Blend Prior HMC at 60 percent drJ' matter woukJ have t~nsiling Provide Good Feed? a total ration dry matter of 55 percent. If HMC with 70 percent dry matter was used A. A blend of wet and dry corn is an instead of the wetter HMC', it would only excellent strategy if the dry corn or other increase total ration dry matter to 60 per- material is available. Blending a dry ground cent. This difference is relatively small and corn with whole wet corn would pack and \ may notjustify the expense of removing 10 ensile properly. In addition, it would pro- points of moisture. vide an excellent feed resource. h may also I be possible to add dry grain screenings or Secondly, the problems with high moisture dry beet by-products to the wet corn as well. diets is the rapid availability and fermentability of nutrients. not the extra Blending HMC with dry corn before stor- water. If corn is partially dried, a bacterial age would be acceptable for grain that will silage inoculant may be desirable. Bagging of high moisture corn for livestock feed may prove to be a popular alternative. Above, be fed to swine. However. average moisture Bill Armbrustmacher of Clinton County was planning on using the nearly 5,500 bushels of content should not go below 22 percent, The story is slightly different for feeding corn in this bag for heifers and steer rations. because fermentation will be decreased and hogs, however. A pig cannot consume spoilage increased as a result. enough energy each day to maximize growth when fed HMC in the 35 to 40 percent range. Thus, partial drying may prove beneficial to improving daily gains. O. Will Acidosis and Bloat be More of a P'fbblem With Wet HMC? A. The potential for digestive disorders is greater with more rapidly degraded sub- stances such as starch. In this case, the immature corn and greater amount of fines increases the rate of starch digestion. Consequently, digestive disorders are a po- tential risk. Basically, two alternatives exist. More roughage can be put into the Travel to England, European Adventure Tour diets or dry corn can be blended with the HMC. Frequent feeding may also lessen the Ireland, Scotland, visiting Austria, problem. However, the expected benefit would be relatively small. These problems & Wales Svvitzerland & Italy would not be related to feeding HMC to July 8-23, 1993 August 14-25, 1993 swine. One does not need the "Luck of the Irish" to enjoy the Our 12-day central European tour takes in the beautiful many attractions included in this deluxe package. This countryside of Austria, the mountains of Italy and the O. What are general harvesting and stor- ~ guidelines to follow? 16-day tour is full of many great attractions including lakes of northern Italy as we visit Fairy tale Bavaria, the such things as Killarney, the Ring of Kerry, the Blarney Passion play village of Oberammergau, the Italian resort 2S to 30 percent moisture: Castle, Waterford Crystal factory, Dublin, Edinburgh of Stresa and Linderhof Castle. Follow usual harvesting and handling pro- Castle, an overnight stay in Ruthin Castle in Wales, cedures that have been done in previous seasons. theatre tickets to a Royal Shakespeare Theatre produc- This European tour includes roundtrip airfare, transfer, tion, a Medieval Banquet, a visit to Stonehenge, deluxe motorcoach transportation, first class and 30 to 3S percent moisture: Buckingham Palace, and a tour of London, as well as Tyrolean-style hotel accommodations, European-style Can be harvested as high moisture corn. Watch for excessi ve kernel breakage and London Theatre tickets. Our package includes roundtrip buffet breakfast daily, 1 dinner, and much more. The the occurrence of "fines" and "flour" airfare, deluxe hotel accommoda tions, 24meals and much Farm Bureau member price is $1,725. Non member price particles. If excessive "flouring" is visible, more for $2,799 per person. , is $1,755 per person. different handling procedures need to be implemented to minimize kernel damage. 3S to 40 percent moisture: Excessive kernel breakage will likely occur Heritage of America and handling procedures that minimize September 25 - October 3, 1993 breakage should be implemented. Mixing of dry corn with high moisture corn going The beautiful colors of the fall foliage combined with America's most historic areas makes this a most outstanding tour into storage would be an option to reduce for Farm Bureau members. Our travels will include New York City, the city of Brotherly love - Philadelphia, the total moisture to more acceptable ranges. Amish country of Lancaster, as well as Gettysburg and the Shenandoah Valley. Our adventures will then take us to Monticello, colonial Williamsburg, and then to our nation's capital, Washington, D. C. Above 40 percent moisture: Questionable moisture range for storage and feeding. Mixing with dry corn before This deluxe tour includes air transportation, first-class hotel accommodations, deluxe motorcoach transportation, 15 storage is recommended. meals, and full sightseeing and admissions to all attractions. This 9-day tour is available for $1,299 per member. Copenhagen Plus October 9-16, 1993 HERITAGE BUILDING SYSTEMS Scandinavia this fall could be the most refreshing, truly different vacation you have ever had. Scandinavia is different, 30. 50 • 10 800-643-5555 U,3ll5 40.50.12 "~,885 but you will feelvery much at home. Our one-week vacation offers you the opportunity to enjoy Copenhagen, Denmark 50.,00 .14 eo. 100.20 "11,1ll5 '11,7115 - one of Europe's most exciting capital cities - known for its fun loving spirit! Copenhagen has many fine museums, 10.150 • 20 ---S27'- BUlLO IT eoo-cw _ YOURSELF -. -.... AND __ SAVE .. -. MONEY lor .... Royal Palaces, and an old harbour district with colorful cafes and cosy restaurants. The Strogit is the famous do 1\ ,....- _ 5,000 __ of ............ '. IerV8I'l --. cIlMrlbulor. __ we _ pedestrian shopping center - Europe's largest - where you can find the finest of Scandinavian goods and crafts. ~ bulIdlngL AI _ -..... _ engNw -...... ".,..,1\ drawing. '0 _. .ar,ant,_ --.rIng ...........-. en Ioal bulldl", c-, and pal ntH •• Ua. P,lc ••• c:.I .. -, r. F08 lor. 20 ,.. ft ... our • __ '001 Our package includes'roundtrip airfare, accommodations at the4 star Sheraton-Copenhagen, a 2-night cruise to Oslo, '*'*-' - •.- ..- .......,........ 50 X 100 x 16 the capital of Norway, city sightseeing, Danish breakfast each morning, 2 dinners, and much, much more for the EQUIPI.1EIH ROOF SYSTEI.l & HAY STORAGE unbelievable price of $1,235 for members, $1,255 for non-members. $10.985 Michigan Farm News ' December 18, 1992 Storage and Feeding of High Moisture Corn Specific Feeding Recommendations BEEF Feeding wetter ensiled com may create er- More information about making these ad- ratic intake patterns and acidosis. The best justments and about using HMC in swine Low test weight com has a slightly lower energy value but cattle tend to increase intake strategy to alleviate the rapid digestion rate diets is found in Extension Bulletin E- 1494. and weight gain remains constant. Feed conversion efficiency is decreased, but average is to blend the com down with dry com Rations including HMC should be made daily gain and time .on feed should remain the same. before feeding. daily and not stored as spoilage will occur. Acid-treated HMC rations can be stored, Providing extra roughage or a form of after mixing, for one to three days without General Feeding Guidelines to Follow ". roughage that requires more chewing, such spoilage. o Faster rates of di-