Michigan Farm News I'.~ 1 .... -1 I August 30, 1993 Vol. 70, No.14 NAFTA: Here's What the Opponents Aren't Telling You! . Michigan sugar farmers and MFB Board members toured Mexico's sugar producing region last Janua/y', to gauge that nation's ability to NAFTA opponents claim: impact U.S. sugar producers under NAFTA. They witnessed Mexican sugar cane harvest, both mechamcally and by hand. "NAFT A will permit unsafe, polluting, and overweight trucks with unlicensed drivers Vehicle Inspection Standards Program. to enter the U.S." U.S. enforcement officers will conduct the What they're not telling you: same stringent driver and vehicle inspec- The agreement contains a transportation tions on Mexican and Canadian carriers as section that will, for the first time, allow are currently conducted on U.S. carriers. U.S. trucks and railroads access to the Diesel fuel in Mexico is quite clean. It Mexican market on terms equal to those meets all U.S. pollution standards except provided to Mexican vehicles in the U.S. for a slightly less strict sulfur limit. This After 3 years, U.S. trucks will be allowed isn't a significant problem for U.S. air pol- to travel within the border states of Mexico, lution, but it could cause problems for emis- a right Mexico already enjoys in U.S. bor- sion equipment in U.S. trucks traveling in der states. In 6 years, trucks from both Mexico. This discrepancy is being ad- countries may be driven into the interior of dressed in bilateral talks. Finally, nothing the two countries. Transportation standards in the NAFT A prevents states from setting will be harmonized at the highest common their own transportation regulations. denominator over the same period (includ- ing licensing of trucks and drivers). NAFTA opponents claim: In the meantime, all foreign trucks and "Mexican farmers can out-compete U.S. drivers must meet all U.S. standards. farmers because of the low wage rates in Mexico has already adopted a commercial Mexico." drivers license, a computerized CDL records system, has joined the Commercial Continued ...see Vehicle Safety Alliance (CVSA), and has agreed to adopt the .North American NAFTA page. 1.5 In This Issue ..... Ethanol Powered Car Performs Well in Indy Test Drive Two-time Indy 500 winner Gordon The test run, conducted in July, was Dick Simon Racing. "The car performed Federal Budget Reconciliation: Johncock has proven, during a test run at the Clinton's budget good news and bad aimed at proving the ability of ethanol just as well with the ethanol as it did with news for agriculture page 3 Indianapolis Motor Speedway, that ethanol blended racing fuel to reduce harmful emis- the straight methanol." blended racing fuel can perform in Indy Car sions, without sacrificing performance. The Dick Simon Racing has worked with Wheat Planting Tips: competition. ethanol blend, utilized in the test, was Johncock, retired from active racing lohncock on this endeavor for more than a Ten quick and easy reminders for a suc- manufactured by Zecol Racing Fuel, Inc., year. According to Dick Simon, their com- cessful wheat crop in 1994 page 5 since 1985, is now a com and beef farmer which has seen tremendous success across bined diligence should pay big dividends. near Hastings Mich., farming 200 acres and the country in sprint car, stock car, and drag "It's the right thing to do," said Simon. "It Limited Liability Companies: raising 125 head of cattle. He's seeking Learn if this new form of business or- racing events of all kinds. improves the environment, helps America's approval from the Indy Car sanctioning ganization is right for your farm .. page 7 Before the test, Johncock took practice farmers, and provides performance benefits bodies to run ethanol blended racing fuel at laps in the 1992 Lola/Buick using the cur- to racing. I like to see win-win situations all races during the 1994 season. Regulatory Compliance rent fuel standard, methanol. After a short like that." According to Johncock, the purpose of Assistance Program: warm-up, Johncock turned in a couple of Great Lakes Hybrids, Inc., America's New MACMA and MFB member service the test was to prove the ability of ethanol- hot laps at around 210 m.p.h. The methanol fastest growing agricultural seed company, program helps keep you in compliance blended fuels to perform in high compres- remaining in the tank was then drained and based in Ovid, will be a sponsor of lohncock with labor regulations page 9 sion, high performance Indy-type racing replaced with ethanol-blended racing fuel. in his effort to field the all-agriculture, engines. He feels strongly about improving Managing Your Diesel Fuel Supply: Without any modifications to the engines, ethanol powered Indy car at the 1994 In- the profitability of farming by developing New EPA regulations on Oct.1 make it Johncock still posted speeds in excess of dianapolis 500. With any luck at all and if new, alternative uses for farm products. important that you separate off-road 210 m.p.h. the few remaining technical questions can "As a farmer, I'd like to be able to run diesel fuel from that used in licensed farm vehicles page 1° on fuel made from my own harvest," said Johncock. "Racing has been good to me, "The car ran great! There was absolute- ly no difference," said lohncock shortly be dealt with, Johncock's "Spirit of the American Farmer" will become a reality. after climbing out of the car provided by Soybean Cyst Nematode: and the popularity of the sport is growing. 1 New pest could threaten your soybean thought, why not use racing to promote Ethanol will be spotlighted through two-time Indy winner Gordon Johncock's efforts to field yields. Sampling good idea ....... page 12 America's farms and their products?" "The Spirit of the American Farmer" in the 1994 INDY 500. Below, Johncock puts the 1992 The idea of seeking approval of ethanol Lola/Buick Indy car through its paces at Indianapolis. Photo: Ron McQueeney, IMS blended fuel came to lohncock as he developed his idea of an all-agriculture sponsorship for his twenty-fifth outing at Indianapolis. Although alcohol fuels have been used at Indianapolis Motor Speedway for many years, the rule book requires the alcohol to be methanol, which is made from petroleum products. But ethanol, made from com, has very little experience in the "greatest spec- tacle in racing." lohncock hopes to change all of that. Earlier this year, lohncock sought an exemption to run the fuel for the 1993 "500" but was told that using the ethanol blend would give him an unfair advantage. "I was told that I could go two more laps than anyone else on our fuel allotment because ethanol would improve our fuel mileage," he said. "That was considered too much of an advantage for us." Michigan Farm News Classifieds - Page 14 Michigan Farm News .-•••.. August 30, 1993 NAFTA- In Brief ... Consider the Corps Unsure of River Reopening Facts, Not the Army Corps of Engineers officials can't peg a date to reopen rivers throughout the Midwest. Uncertainty as to what lies below the waterline is contributing to the delay. "~he normal Political channels may not even be there anymore," said Wally Feld of the Corps of Engmeers. Propaganda Portions of the Mississippi, Missouri and Illinois rivers remain closed, according to an Associated Press report. The Mississippi River h~s been opened to traffi~ north of.Lock a~d Dam number 19 at Keokuk, Iowa, but will remam closed below that pomt for an mdefimte ofa Few period. The rivers' closings have stranded an~ ~ocked around 5,~00 cargo~laden river barges. Barge operators estimate they lose $3 mIllIon each day the flvers remam closed. Over the years, one of the things I've admired most about the way our Farm Bureau organization operates is that our activities and policies are based on logic and Now, How About the Cuts? sound reasoning rather than just wishful thinking. Farm Bureau, through our policy development process, does more than any other organization in existence to make Now that Clinton's deficit reduction package has been approved with no guarantees for sure that the facts on a controversial issue are laid out on the table. Then, before federal spending restraint and cuts, several congressmen are drafting letters aski~g for a a policy is approved, all the angles are examined, all the implications are con- special congressional budget-cutting session. The idea originated in the Senate WIth Bob sidered and all the possible impacts are discussed. Kerrey (D-Neb.) and was picked up in the House by Rep. Robert Andrews (D-NJ). In order to gather information about the impact on agriculture of the North American Andrews said that more than 230 House members, including about 75 Democrats, had Free Trade Agreement (NAFT A), a number of Michigan farmers and myself made signed a letter to House Speaker Tom Foley asking for the special session. "We now have two trips to Mexico last year. One of the trips included American Farm Bureau a majority of members of the House on record saying we want to do this," the New Jersey Federation President Dean Kleckner and other national agricultural leaders. The Democrat said. "That fact alone should convince the House leadership to do this. Of all the other visit included representatives of the Michigan sugar industry. partisanship we've seen in Washington, here's the first thing that has some honest-to-good- ness bipartisan support." Being on the scene and talking to Mexican farmers gives uniquely valuable and accurate insights into what NAFT A really means. For example, I think it's clear that Labels Ordered by Mid-October U.S. fears of losing jobs to cheap labor in Mexico are overblown. Wages may be low in Mexico, but so is productivity. By and large, American workers are more USDA officials have ordered all raw or partially cooked meat and poultry be labeled with productive and more valuable to an employer. safe handling instructions after Oct. 15. Labeling of meat and poultry products sold in the U.S. was prompted by an E. coli bacteria outbreak in the Western part of the nation last Likewise, Mexico does not enjoy the natural resources that give us compf!titive January, at a fast-food chain, according to an Associated Press report. advantages in many industries. Transportation and technology also are In our favor. Mexico's population is growing at a tremendous rate. And thanks to recent The move to label products also follows the settlement of a lawsuit filed by Jeremy Rifkin's free-market reforms, so is their economy. We saw great demand for imported food group "Beyond Beef." Beyond Beef is still not satisfied with label wording that recom- products, and if we don't meet t~at demand, .someo:,e els~ w!". N.AFTA obstruc- mends proper cooking and safe internal meat temperatures. tionists ignore the tremendous nsks we face If we reject thIS hlstonc agreement. Study: Pesticides Still Impact Farm Workers A failed NAFTA will create enormous problems for our nation and for Mexico -- as well as for U. S. farmers. If we turn our backs on NAFT A and reject this powerful A new study just released by the University of California/Berkeley is claiming farmer- new trading relationship in our own hemisphere, we will forego billions in additional workers are afforded enough protection from pesticides. The report stated that more than farm exports. 1,000 farm workers are still sickened annually by pesticides, despite warnings by social groups about the use and exposure to the chemicals. NAFTA guarantees that U.S. farmers will continue to ben~fit f~om recf!nt export gains to Mexico -- now our third largest market. If NAFT A IS rejected, It won t be "There seems to be more concern about the fears of pesticide residues on food than on the long before Michigan farmers are disgustedly asking why such a large market was health of farm workers exposed to these chemicals in the field," said James Robinson, the sacrificed to European or South American farmers. study's co-author and a UC/Berkeley public policy professor. In addition to stringent regulations, the researchers said they would like to see a surtax placed on products raised Farm Bureau's NAFTA policy was extensively discussed at the Michigan Farm with the use of chemical pesticides. Bureau and American Farm Bureau annual meetings. The decision to support NAFTA is based on sound, factual study and research. Don't believe the lies about Pork Campaign Paying Off NAFT A that are being spread by an obviously desperate political source whC?'s beholden to special interests. I urge you to trust the results of Farm Bureau's po"cy An advertising campaign launched last year to extol the virtues of pork is paying dividen~s, agriculture vel}l well indeed for 75 years. 9. a..c-R t~ development process, a process that has served this organization and Michigan according to officials with the National Pork Board. Since the "Pork -- The Other WhIte Meat" campaign was launched, consumer attitudes toward pork have improved and awareness of the ..:ampaign hasTisen from 14 percent to 78 percent. lack Laurie, President Three in four pork producers say they believe the campaign has helped them personally. Michigan Farm Bureau The ad has been funded by a pork checkoff program started seven years ago. Through the checkoff, producers pay 35 cents from every $100 of stock they sell at market. Elton R. Smith Chair in Ag Comments Sought on Soybean Promotion Economics Filled at MSU The Agriculture Department is seeking public comment on two reporting changes in its Sandra S. Batie, professor of agricultural national soybean promotional program. The first change eliminates bi-weekly reports of economics at Virginia Polytechnic Institute commodity assessments from soybean buyers. The other eliminates the requirement for and State University, has been selected as the forms certifying that a seller is not also a producer. first person to hold the Elton R. Smith En- dowed Chair in Food and Agricultural Policy at Michigan State University. Her appoint- Th~ changes were designed by the Agricultural Marketing Service to reduce paperwork ment is effecti ve Sept. I. and recordkeeping costs. Comments should be sent to: Marketing Programs Branch, "Batie was selected as a result of an inter- Livestock and Seed Division, USDA-AMS, Room 2624-S, P.O. Box l6456, Washington, national search," said Fred L. Poston, dean of D.C. 20090-6456. the MSU College of Agriculture and Natural Resources. "Her credentials are outstanding. Michigan July Milk Production Up She's an accomplished researcher, teacher, policy consultant, author and speaker." Dairy herds in Michigan produced 469 million pounds of milk during July, up 3 million Batie recei ved her bachelor's degree in pounds from a year ago, according to the Michigan Agricultural Statistics Service. Milk economics from the University of per cow averaged 1,380 pounds, increasing 10 pounds from a year ago. The Michigan dairy Washington and her master's and doctoral herd was estimated at 340,000 head, unchanged from July 1992. Milk in the 21 major states degrees in agricultural economics at Oregon totaled II billion pounds, up I percent from production in these same states in July 1992. State University. Production per cow averaged 1,351 pounds for July, 29 pounds above July 1992. An economic policy analyst who special- izes in natural resources and rural develop- ment policy issues, especially as they affect 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 the future of Michigan and U.S. agriculture, Bureau, 7373 West Saginaw Highway, Lansing, M148917. Member subscription price of $1.50 included in annual Batie was president of the American Agricul- dues of Michigan Farm Bureau regular members. Additional subscription fees required for mailing Michigan Farm tural Economics Association (AAEA) during News to non-members and outside the continental U.S.A. Second-Class Postage paid at Lansing, MI and 1989-90 and served as an AAEA director the first person to hold the chair. She has many additional mailing offices. Letters to the editor and statewide news articles should be sent to: Editor, Michigan from 1984 to 1987. of the qualities of leadership and vision that Farm News, P.O. Box 30960, Lansing, MI 48909-8460. POSTMASTER: Send address changes to: Michigan The Elton R. Smith endowed chair was Elton Smith had. We are looking forward to a Farm News, P.O. Box 30960, Lansing, MI48909-8460. established in 1986 as ajoint venture between long and productive working relationship Editorial: Dennis Rudat, Editor and Business Manager. Staff Contributors: Mike Rogers; Connie Lawson; Donna the MSU Department of Agricultural with her," said MFB President Jack Laurie. Wilber; Henry Huisjen. Economics and Michigan Farm Bureau to Batie will conduct research on food and agricultural policies; provide policy educa- Officers: President, Jack Laurie, Cass City; Vice President, Wayne Wood, Marlette; Administrative Director, Chuck honor the contributions of Elton R. Smith, Burkett; Treasurer and Chief Financial Officer, Tom Parker; Secretary, William S. Wilkinson. Directors: District 1, former president of Michigan Farm Bureau tion leadership for undergraduate, graduate Jim Miller, Coloma; District 2, Blaine VanSickle, Marshall; District 3, Diane Horning, Manchester; District 4, Tom and vice president of the American Farm and Extension programs; and conduct policy Guthrie, Delton; District 5, Mark Smuts, Charlotte; District 6, Wayne Wood, Marlette; District 7, Larry Snider, Hart; Bureau Federation. research and education efforts across the District 8, Richard Leach, Saginaw; District 9, Joshua Wunsch, Traverse City; District 10, Margaret Kartes, West "We at Farm Bureau are delighted not department and the university, as well as with Branch; District 11, Robert Wahmhoff, Baraga. At-Large: Douglas Darling, Maybee; Jack Laurie, Cass City; Faye only to realize our dream with the filling of farmers, agricultural organizations, Adam, Snover; Jan Vosburg, Climax. Promotion and Education, Paul Swartzendruber, Pigeon; Young Farmers, the Elton R. Smith Chair, but we are especial- governmental units, consumer groups and or- Kurt Inman, Sturgis. ly pleased that Sandra Batie was selected as ganizations in the private and public sectors. Michigan Farm News ITOL o •• August 30, 1993 o :D McPherson Appointed as New MSU President E1 Z Below, M. Peter McPherson accepts his appointment as the 19th MSU president m from the MSU Board of Trustess. McPherson's previous career in financial and business administration will be put to the test as the university deals with restraining :D tuition increases and administrative costs. A Kent County farm boy who grew up to place and be active, and it's time that it be a bank executive has been picked by happened," said Laurie. • Lowers the maximum annual incentive Michigan State University's Board ofTrus- payments ,awool or mohair producer tees to serve as MSU's 19th president. M. "We in agriculture look forward to an op- may receive from the current $150,000, Peter McPherson, a 1963 MSU graduate, portunity to build our relationship with the to $125,000 in the 1994 marketing year, was serving as executive vice president at new president. We would like to impress $100,000 in 1995, $75,000 in 1996 and on him how important it is that the agricul- Bank of America in San Fransisco. $50,000 in 1997 and thereafter. USDA tural industry has the support-base of our will no longer be allowed to deduct marketing charges in determining net McPherson was responsible for the Trust land grant university in order to be a major sales proceeds for shorn wool and Department, domestic and international part of our economy," Laurie concluded. shorn mohair. The wool and mohair private banking, institutional investment marketing assessment will be eliminated and mutual funds. He was also responsible One of {he major challenges facing Mc- beginn!ng with the 1993 marketing year. for restructuring debt with developing na- Pherson is helping MSU provide {he oppor- tions, reducing the debt from $7.5 billion to tunity for a quality and affordable educa- • Reduces the maximum Market Promo- $600 million. tion, according to Ron Nelson, legislative , tion Program (MPP) funding from the , " ., }:. . ,," , current authorized level of $148 million annually to $110 million beginning Oct. MFB President Jack Laurie welcomed counsel for MFB. InadditiQnto!h~tg~Jl~'nil pro~isions noted . , above}~rye,binClJts $2.9 billion in agriculture 1, 1993. USDA Secretary is directed to news of the appointment and said he hopes "The Legislature has limited funds and spendFlg'ov~r5years.Following are the cuts implement certain'program reforms to the new president will remember that MSU over the past several years, the increase in target assistance to counter and offset is a land grant university, and that the focus year-to-year appropriations to MSU has of int~res.ttoMichigan agriculture: unfair foreign trade practices. Greater is service to the people - and that includes been minimal. Tuition is the other source • Removes the authority of the Secretary participation in the MPP from small en- of funding for the university, but as that agriculture. of Agriculture to waive.minimum Acreage tities will be encouraged. MPP is an ex- increases, it limits the number of people Reduction Program (ARP) levels. ' port promotion program that helps "We feel it's important that the university who can afford to attend MSU." he said. producers and processors of U.S. • Reduces the 0/92 program forwheat and agricultural products develop export has leadership, and that the leadership be in feed grains to 0/85. The existing 0/92 pro- markets. gram would be retained in the event of prevented planting or failed acreage and for minor oilseeds or other alternative • Caps enrollment of land into the Conser- vation Reserve Program (CRP) at 38 Notice of Public Hearing on crops planted on permitted acres. million acres through 1995 rather than the 40 million acres minimum enrollment Proposed Amendments to Regulation • Readjusts the purchase prices under the milk price support program for butter at target under current law. Currently, there are 36.5 million acres in the CRP. No. 628 Seed Potato Certification no more than 65 cents per pound and nonfat dry milk at no less than $1.034 per • Reduces total acreage enrollment into A public hearing on proposed amend- be cleaned other than on the seed farm pound. The minimum milk price support the Wetlands Reserve Program (WRP) ments to Regulation No. 628. Seed Potato premises. remains unchanged at $10.10 per to a minimum of 330,000 acres through Certiticatio~, will be held on Wednesday, hundredweight. 1995, and a minimum of 975,000 acres Sept. 8. 1993, beginning at 10 a.l11. in the 7. Revision of sanitation standards for any through 2000. Current law requires en- Ottawa Building, Upper Parking Level, grower operation in \vhich bacterial ring • The current assessment on milk would rollment of 1 million acres into the WRP Conference Room #3, 611 W. Ottawa, rot has been identi tied. be continued into 1996 and then lowered through 1995. Lansing, Michigan. to 10 cents per hundredweight. • Requires the Federal Crop Insurance 8. Revision of grading tolerances for yel- • Delays the sale of bovine somatotropin Corporation to take steps necessary to The proposed amendments provide for: low tag and red tag grade seed potatoes. (8ST) following approval by the Food and improve the actuarial soundness of the I. Revision of requirements for certifica- Drug Administration for 90 days. During Federal Crop Insurance program so as tion eligibility and elimination of the re- 9. Establishment of a tag (purple) for the 90-day moratorium, the USDA must to achieve a projected overall loss ratio quired list of eligible varieties. prenuclear stock. complete an economic and social impact of no greater than 1.1 by Oct. 1, 1995. study within 45 days. Congress then has 2. Revision of field and storage isolation 10. Additional definitions for operation. the remaining 45 days to decide what, if These steps include instituting a require- ment for actual production history requirements. - prenuclear seed stock, certification, any, further legislative actions are ap- propriate regarding 8ST. The current as- records by farm producers, expanding separate operation. and tolerance. sessment levied on all producers will be the current "Group Risk" pilot program, 3. Revision of storage and sanitation re- reduced 10 percent during the 90-day creating a nationwide database to track quirements for bacterial ring rot infected The department invites all interested per- period. participation to improve actuarial sound- potatoes and cull potatoes. sons to present their views regarding the ness while maintaining fairness and ef- proposed amendments either orally or in • Increases sugar program assessments fective coverage for producers. 4. A reduction in the number of field writing. Those wishing to testify in person by 10 percent on raw cane and beet inspections from three to two or more for at the hearing are required to bring written sugar beginning with marketings after MFB POSITION: Sept. 30, 1994. prenuclear, nuclear, generation I, II, III, statements with them. Written comments Farm Bureau opposed H.R. 2264 because IV, premier foundation, and foundation must be received by the Pesticide and • Reduces the soyoean loan rate from the of the massive tax increases. Farm Bureau seed potatoes. Plant Pest Management Division by 5 current $5.02 per Bushel to $4.92 per did not support the $2.9 billion spending p.m., Wednesday, Sept. 15, 1993. bushel and reduces the minor oilseed cuts for agriculture which has already seen 5. Sanitation and recordkeeping require- loan rate from $8.90 per hundredweight cuts averaging 9 percent in each of the last ments for packaging facilities. A copy of the proposed amendments to to $8.70 effective with the 1994 crop. eight years. These cuts are disproportionate the regulations can be acquired from • Eliminates the current 2 percent loan to other segments of the federal budget. 6. Inclusion of sanitation provisions to the Michigan Department of Agricul- origination fee for soybeans and minor oil- regulate access to storages, processing ture, Pesticide and Plant Pest Manage- seeds beginning with the 1994 crop. MFB CONTACT: areas, and production fields by non-disin- ment Division, P.O. Box 30017, Lans- Al Almy, Ext 2040 fected equipment. Requires that trucks ing, Michigan 48909, telephone (517) used to transport certified seed potatoes 373-9753, upon request. Michigan Farm Bureau (517) 323-7000 -. Michigan Farm News August 30, 1993 3D-Day Forecast - Warmer Than Normal, Near Normal Precipitation Warm, muggy conditions of late July were offset by cloudy, cool conditions in early August, resulting in near or slightly below Precipitation normal temperatures for the mid-July Actual Normal through mid-August period. Rainfall . (inch.) (inch) during the period was highly variable, with . Alpena , 2.56 3.19 some spots in the western Lower Peninsula Bad Axe 5.02 2.87 reporting more than six inches while totals Detroit . 1.73 2.90 at some locations in central and Escanaba. 2.11 3.46 southeastern Lower Michigan were less Flint 3.30 2.90 than two inches. Grand Rapids 3.24 3.06 Houghton 1.89 3.53 Following a chilly beginning, August Houghton Lake 2.52 3.19 weather will likely become more summer- Jackson 3.49 3.21 like, with the main jet stream flow patterns Lansing 3.99 3.21 Marquette 3.70 3.53 and cool air masses expected to remain Muskegon 5.51 2.94 west and north of the Great Lakes region. Pellston 1.77 2.88 Saginaw 3.72 2.87 The latest National Weather Service 30-day 3.46 Sault Ste. Marie 2.09 outlook for mid-August through mid-Sep- 2.29 3.06 South Bend tember calls for above normal temperatures 2.70 2.88 Traverse City and near normal precipitation. This outlook 4.75 3.15 Vestaburg should come as good news to those with full season crops (with greater growing degree Observed and growing degree day totals are accumulated from March 1- August 15 day requirements) and current seasonal deficits in heat accumulation. Normals are based on district averages. Jeff Andresen, Ag Meteorologist, MSU Michigan Yield Prospects Much Improved This Year A more "normal" summer has left Soybean production is estimated at 51.5 year due to lower yields and less acres for Michigan's yield prospects improved over million bushels, an increase of 8 percent harvest. last year, according to the Federal/State from 1992. The expected yield is 36 Michigan and Major Commodity Area Michigan Agricultural Statistics Service. bushels per acre, up 3 bushels from last Oat production is estimated at 9.2 million Extended Weather Outlook season. bushels, up 9 percent from 1992. The ex- T-Temp. 8/15 8/31 8/15 10/31 Cumulative growing degree days are up pected yield is 68 bushels per acre, down P - Precip. T P T f significantly from 1992, while precipitation Dry bean yield is forecast at 1,600 pounds, two bushels from last season. Michigan A N N N levels are also higher except in the southeast up 350 pounds per acre from last year. W. Corn Belt A N B N and parts of the Thumb. Based on condi- Production is expected to total 6.1 million Nationally, com yield is forecast at 116 E. Corn Belt N NIB B A tions as of Aug. I, yields are forecast to be hundredweight (cwt.), an increase of 57 Wint. Wheat Belt A N BIN N bushels per acre, down 15.4 bushels from Spr. Wheat Belt A N B N higher than 1992 levels for all but small percent from 1992. last year's record yield. Production is es- Pac. NW Wheat N N A N grain crops. timated at 7.42 billion bushels, down 22 Delta A B N N Sugarbeet production is forecast at just percent from 1992' s record level. Acres Southeast A B N/A N The corn yield is forecast at 110 bushels per over 3.4 million tons, up 10 percent from harvested from grain were revised down 5 San Joaquin N NP A B acre, up five bushels from 1992. Acres for last season. percent from the June "Acreage" estimate harvest as grain is expected to be 2.2 million (almost 3.3 million acres) due to flooding A-Above Average, B-Below Average, N-Nor- mal, MA-Much Above, MB-Much Below, NP- acres, down 100,000 acres from last season. The all hay yield is estimated at 3.91 tons in the Midwest and a drought in the No Precip. Source: National Weather Office Total production at 242 million bushels is per acre. All hay production, at 5.3 million Southeast. up less than one percent from last year. tons, is up 14 percent from last year. The expected alfalfa yield, at 4.2 tons per acre, Soybean acreage. was revised down 7 per- is up 17 percent from 1992. cent (4.1 million acres) from June. Yields Michigan Dry Bean Prospects Good Summer potato production, pegged at 3.5 are expected to be 33.8 bushels per acre, down 3.8 bushels from 1992. Production is Michigan's 1993 dry bean production is ing was completed. Harvested acreage is ex- million cwt., is up 12 percent from 1992. forecast at 1.9 billion bushels, down 13 forecast at 6,080,000 hundredweight (cwt.), pected to total 380,000 acres, up 23 percent percent from last season. up 57 percent from the disappointing 1992. from a year ago. The winter wheat yield is forecast at 45 The excellent growing conditions during July Navy bean planted acreage is estimated bushels per acre, down five bushels from accounted for the increase in production, ac- at 260,000 acres, up 25,000 acres from 1992. The dry bean crop is estimated to be up 18 cording to the Michigan Agricultural Statis- July, and down 11 bushels from 1992. Total percent. Winter wheat production, at 1.8 Planted acreage for all colored varieties of tics Service. As of Aug. I, yields are forecast beans is estimated at 130,000 acres, up production is down 31 percent from last billion bushels, is up IIpercent from 1992. at 1,600 pounds per acre, up 350 pounds per 30,000 acres from last season. Class break- acre from last year, assuming normal weather downs for planted acreages within the conditions for the remainder of the season. The majority of the crop was planted in late June and early July. Some early plantings colored category were as follows: dark kid- ney, 10,000; light kidney, 8,000; cranberry, 40,000; black turtle, 60,000; pinto, 7,000; Roots to Profitability. were replanted during this time period due to small white, 2,000; and other, 3,000. some heavy rains in mid-June. A warm Nationally, the 1993 crop of dry beans is August with timely showers would be benefi- forecast at 26.0 million cwt., up 18 percent cial for the crop along with a frost free Sep- from last year but 23 percent below the record tember. high crop of two years ago. Production in ~ I \\ All dry beans planted are estimated at North Dakota is expected to total. 4,370,000 390,000 acres, up 16 percent from 1992. The cwt., down 7 percent from last year. Flood August acreage estimate is based on a special losses or excessive rains lowered yields from survey of about 1,500 farmers in the 18 largest last year in Minnesota, North Dakota, and dry bean producing counties. The survey was Wisconsin. Considerable acreage in North Increase Wheat Yields conducted during July after most of the plant- Dakota is saturated beyond recovery. $pring is the time to treat wheat with ACA to gain your advantage. ACA can be used Estimated Production for 1993 harvest as of Aug. 3, 1993,by Greg as a spring dormancy break application with your topdressing fertilizer to boost your yields. Varner, Research Agronomist, and Dale Kuenzli, Executive Director of the Michigan Bean Commission: 1992 Yields Michigan Dry Bean Production ACA-treated wheat had an average increase of 10.76 bu/acre with the highest yield 1993 Estimates as of August 9, 1993 increase at 22.22 bu/acre. On farm yield Colored Varieties 1993 increases in 1992 varied from 5.16 to Variety 1992 Carry Over Acres Yield Production 22.22 bu/acre. The four-year average yield increase wheat growers have seen using Harvested Acreage CWT ACA has been 8.53 bu/acre. ORK 7,000 13,000 1450 188,500 LRK 8,000 10,000 10,000 1500 150,000 See the Benefits of ACA Crans 30,000 10,000 35,000 1475 516,250 Better root systems Increased Profits 6,000 1500 90,000 Heathier Plants Increased Yields Pintos 7,000 Easier Harvesting Proven Performance Blacks 40,000 70,000 1650 1,155,000 Sm wht 2,000 1,200 1400 16,800 To see the difference apply ACA with 1600 22,400 anhydrous, liquid 28% N, Liquid Starter, Gr Northern 1,400 impregnated on dry or sprayed. Other 3,000 1500 45,000 Contact Your Local Sub-Total 22,000 139,600 2,183,950 Clean Crop Dealer Navy 1.600.000 240.000 3.480.000 or call 1..800 ..292 ..2701 for additional information Grand Total 1,622,000 379,600 5,663,950 I I on the ACA Advantage! Michigan Farm News ell August 30, 1993 10 Reminders for Successful Wheat Production in Michigan Wheat is an excellent crop that fits well ing production recommendations: 3. Test soil and apply all recommended 7. Seed with a properly equipped grain drill into many cash crop farm rotations. Plant- 1. Control perennial weeds prior to plant- phosphate, potash and manganese plus 10 in seven-inch rows. Place seed one to two ing wheat in your rotation can help increase ing. to 20 pounds of actual N per acre prior to inches deep using a seeding rate of 29 to 32 soil productivity, reduce soil erosion, planting or through the drill at planting. seeds per foot of row (2.5 to 3.0 bushels per spread out yearly labor requirements and 2. A void planting after wheat and other acre). improve cash flow prior to fall harvest. To small grains. 4 .. Select certified seed of high yielding obtain your best yields, consider the follow- varieties for your area. "Chelsea," the new 8. Top-dress with 80 to 90 pounds of actual MSU release, is the highest yielding white N per acre at spring green-up. wheat available. 9. Spray for broadleaf weeds, if required, 5. Treat all wheat seed with a registered after crop is fully tillered. fungicide to protect the seed from seed and soil borne diseases. 10. Scout fields for insects and diseases and apply pesticides only when needed. Be sure 6. Begin planting wheat anytime after the to apply pesticides at the growth stages Fly Free date. recommended on the product labels. Michigan State University Wheat Breeding Program: Multi- Year Performance Summary (All County sites included) Preliminary Report. July 30, 1993. 1993 Disease Dbs. Single Year Multi-site (1 rep at lenawee, Average Yields Across Year Averages 0-9.0-no Syll'4)tOll, (Bushels/acre) (bu./acre) 1993 9=severe Svw.>tOlllS) Test Variety MSU 2 YR 3 YR 4 YR 5 YR lIeight Grain Powdery leaf Name Stock 10 1989 1990 1991 1992 1993 92-93 91-93 90-93 89-93 (lbs/bu.) Color MiIdew IISSV Rust Freedom 14628 78.5 69.3 56.5 RED lIakefield 14632 79.2 n.o 91.3 68.7 eo.O 79.0 79.0 58.7 RED Pioneer 2510 15157 114.8 68.2 91.5 57.3 RED Mendon C4227 78.0 76.3 105.0 67.8 86.4 83.0 81.7 55.8 RED Pioneer 2545 15158 98.2 67.4 82.8 56.3 RED Madison 14631 74.4 75.0 91.5 66.7 79.1 n.7 76.9 57.2 RED lowell C4827 74.9 76.6 103.9 66.5 85.2 82.3 eo.4 54.9 IIHITE Chelsea C5023 70.5 75.0 66.9 103.9 66.4 85.1 79.0 78.0 76.5 56.9 IIHITE Twain 14646 68.3 n.3 71.8 88.3 66.1 n.2 75.4 75.8 74.3 58_9 RED Pioneer 2571 15330 66.0 57.8 RED Hessian Fly-Free Dates for Michigan1 Exp205 15334 66.0 56.2 RED BCK6lty 15343 65.7 56.3 RED Earliest Earliest Earliest Earliest Harus M0301 65.9 69.0 71.1 101.7 65.6 83.6 79.4 76.8 74.6 57.3 IIHITE Seeding Seeding Seeding Seeding Cardinal M0298 62.8 69.5 70.2 98.6 65.5 82.0 78.1 75.9 73.3 57.2 RED Date Date Date Date Pioneer 2548 14645 66.7 75.9 75.6 97.2 64.9 81.0 79.2 78.4 76.0 57.2 RED County (Seot.) County (Seot.) County (Seot.) County (Seot.) Dynasty 13966 66.9 70.5 62.5 95.7 64.9 80.3 74.3 73.4 n.l 58.3 RED Casey 15346 64.8 55.6 RED A1cona .. . 6 Eaton . 16 Lapeer 15 Ogemaw 10 Sawyer 14622 67.5 91.4 64.7 78.0 74.5 57.3 RED Allegan .20 Emmet .4 Leelanau .8 Osceola 10 Sr204 15335 63.5 60.3 RED Alpena .9 Genesee 17 Lenawee 25 Oscoda .7 Nascoclassic Rw151 15336 63.5 60.2 RED 55.6 RED Antrim .4 Gladwin 12 Livingston 16 Otsego . . 6 Expt. 3.017 15339 63.0 , Arenac Barry . .13 .18 Grand Traverse Gratiot . .. 8 . 15 Macomb Manistee 18 13 Ottawa. Presque Isle .8 19 Susquehanna Big Red 15007 15191 62.9 62.9 55.9 56.1 RED RED Arbor 15192 n.l 62.8 69.9 59.3 RED Bay .. .14 Hillsdale . 19 Mason 13 Roscommon .7 Tw88225 15082 62.7 54.4 IIHITE Benzie .16 Huron . 13 Mecosta. 12 Saginaw 16 Brandy 15341 62.6 59.5 RED Berrien .23 Ingham .17 Midland . 15 Sanilac 15 Msu line C5259 62.8 62.5 57.2 IIHITE Branch .19 Ionia . 16 Missaukee .9 St.Clair 16 Fundela 15337 62.5 59.8 RED Calhoun .19 losco . .7 Monroe .. 21 St. Joseph 23 Msu li ne C9327 104.9 62.2 83.5 55.7 IIHITE Cass .. .22 Isabella 11 Montcalm . 15 Shiawassee 16 Gr863 14182 92.4 61.9 n.l 57.3 RED Charlevoix .3 Jackson 16 Montmorency .7 Tuscola .. 15 Pro Seeds 425bw 15344 61.6 55.3 RED Cheboygan .4 Kalamazoo .20 Muskegon 18 Van Buren . 22 Chief tan 15190 61.2 59.8 RED Clare .. .12 Kalkaska .5 Newaygo 15 Washtenaw 18 Oyna Grow 246 15338 60.9 59.6 RED Clinton '. .17 Kent 18 Oakland 16 Wayne . 18 Rs 927 15163 88.3 60.7 74.5 59.6 RED Crawford . 6 Lake 13 Oceana 16 Wexford .9 Annette H95-9 15034 56.9 100.2 60.3 80.2 n.4 56.1 IIHITE lsi Ag 1-92 15345 60.3 60.2 RED lFrom "Insect Control in Small Grain Crops, I MSU Extension bulletin E-0829. 14647 61.5 66.0 63.7 90.0 60.2 75.1 71.3 69.9 68.2 60.6 RED lincoln Variety MSU 2 YR 3 YR 4 YR 5 YR lIeight Grlin Powdery leaf Name Stock 10 1989 1990 1991 1992 1993 92-93 91.93 90-93 89-93 (lbs/bu.) Color Mildew IISSV Rust P2737w 15159 105.7 60.0 82.8 54.3 liMITE Msu line C4826 76.4 76.1 108.9 59.5 84.2 81.5 80.2 54.1 IIHITE August Fruit Report Shows Higher Patriot 210 15342 59.3 56.4 RED Yields for Michigan Msu line 00200 59.2 54.8 liMITE Karena 15026 . 66.4 107.3 59.0 83.1 n.5 54.9 liMITE Tw86317 14670 64.8 102.2 58.9 80.5 75.3 52.9 RED Warm weather in July spurred develop- 1992 season. If realized, the state yield Augusta M0300 58.6 71.1 61.1 102.8 58.6 80.7 74.1 73.4 70.4 53.8 lIMITE ment of fruit crops in the Great Lakes state. would be 20,600 pounds per acre. Gr915 15347 58.6 53.4 RED Insect infestations and frost kill have been Msu line 00187 58.5 54.2 11MI TE negligible, according to the Michigan Nationally, the apple crop was placed at just Msu line 00503 58.5 56.3 RED Agricultural Statistics Service. under 10.8 billion pounds, up less than one Excel Oh286 14187 88.1 58.4 73.2 53.3 RED percent from 1992. Production in Becker M0297 56.9 01.5 62.1 99.3 58.3 78.8 73.2 70.3 67.6 53.7 RED The sets of fruit that are pollinated earliest, Washington and New York was forecast at Msu Line 00026 58.2 53.9 IIHITE however, were hampered by the below nor- 4.8 and 1.02 billion pounds, respectively. Frankemuth M0290 59.0 66.8 61.9 98.1 58.0 78.0 n.6 71.2 68.7 55.4 IIHITE mal spring temperatures. There has been Msu line C9208 104.3 57.9 81.1 55.1 IIHITE scattered hail injury in apples, and some The peach crop forecast, excluding Califor- nia clingstones, was 1.63 billion pounds, up Ny 262-37-10w 15169 57.8 57.5 lIMITE disease damage in plums, grapes and sweet cherries. The quality of fruit, however, 10 percent from last year. Sw82 15340 57.5 56.1 RED should be higher than in 1992. Msu line 00543 57.0 53.1 lIMITE { Grape production was placed at 5.63 mil- Msu line 00186 56.9 52.5 RED The Aug. 1 grape production. forecast for lion tons. Five mi IIion pounds of that Msu line C9283 99.9 56.3 78.1 54.2 lIMITE Michigan was 55,000 tons, up 17 percent production is in California. Mill sdale M0295 60.2 64.8 60.3 97.2 56.1 76.6 71.2 69.6 67.7 56.1 RED from 1992. If realized, the yield would be Gr 876 14615 67.7 73.2 71.5 92.6 55.8 74.2 73.3 73.2 72.1 57.1 RED five tons per acre. The pear output was set at 945,300 tons, a Geneva M0302 63.0 71.7 69.0 94.3 55.4 74.8 n.9 72.6 70.6 55.5 lIMITE 2 percent rise from 1992. California, Genesee "0001 55.4 53.5 lIMITE The potential peach output was placed at 50 Washington and Oregon accounted for 96 MSUline 00614 55.2 53.8 RED million pounds, equal to last year's crop. percent of the crop forecast. MSUline 00174 53.6 53.6 11M1TE The pear tonnage was cast at 5,000 tons, a Spelt 15348 39.9 21.4 RED drop of 17 percent from 1992. The plum The plum production forecast was 29,500 Mean 63.6 71.9 68.5 97.9 61.1 n.4 75.1 75.4 71.7 55.7 crop was predicted to plummet to 3,000 tons, slipping from 38, I00 tons a year ago. CCK6lties 7 7 5 5 10 17 24 31 5 tons, down from 8,000 tons the last two These figures include production in l.s.d. 8.2 5.3 3.0 c.v. 6.9 6.9 2.1 years. Michigan, Idaho, Oregon and Washington. Interpretation: Yield coq>arisons are only valid within a colum. 1993 yield data is calculated using a IIOre conservative .thad than used in previous years. This reOJced plot yields by about 20X. A IIOre coq>rehensive data report will be iuued The apple production forecast was 1.1 bil- later this year. Data for Susqueharna are for only 4 sites (occurence 2 at lenawee CIIitted). For additional information contact R. liard, 517/355'2231 lion pounds, up 2 percent from the bountiful Michigan Farm News August 30, 1993 Market Outlook ... WHEAT ...... •••••••• ••••••• ••••••• . ••••• .r•....•. •••• '1••• •••• ~.rl ~~ ,j ••• r• 11 Dr. Jim Hilker, Dept. of Agricultural Economics, MSU The grain markets have been jumping for Seasonal Commodity Price Trends' As seen in Table 2, 1993 wheat production is expected to be somewhat greater than last year. When you add that to a larger carry-in and lower demand, it's not a pretty picture. R~RM •••••••• ~ ' ~~::. •••••••• several months and I expect that pattern to continue through at least the first major frost Feed use is expected to be up sharply, but an expected decline in exports will more than offset it. Michigan's 1993 production BUSINESS in the Com Belt. Over 7 million acres of Wheat .- com and soybeans were either not planted or drowned out due to the flooding in the was measured at 24.3 million bushels, down 11 million from a year ago. This decrease was caused by two factors: acres were down OUTLOOK central Com Belt. Corn ? ..• c. Cc 90,000, and the 1993 yield was listed as 45 corn and beans will have a rally, even 'c' bushels per acre versus last year's 50. In the Southeast, crops were burnt up due to high temperatures and lack of rainfall. On Soybeans 1? though prices are already higher than fun- damentals would suggest. -1 ..• The annual average U.S. price is expected the other hand, we have huge stocks of com Hogs to be around $2.75 per bushel. As of this and moderate stocks of soybeans left over c", Strategy: At this point, the December basis writing, you can sell wheat for higher than from this year, and excellent looking com is probably not wide enough to pay storage. and soybeans in the eastern Com Belt. There Cattle ..-. that. So the critical question is: will it pay So if it is offered, consider a basis contract, to store and/or wait to price? Wheat prices " will still be some excellent pricing oppor- a minimum price contract, or sell your are likely to rally if com and beans do; tunities between now and harvest for market watchers with a marketing plan. t Index: = Higher Prices;! = Lower Prices; therefore, it may be rational to wait to price wheat and buy an out of the money call. TP= Topping; BT = Bottoming; ? = Unsure some of your wheat given the strong odds CORN SOYBEANS On Aug. 11, the USDA released its first porated these estimates for the 1993-94 com Despite the weather problems, the USDA is and exports off 120 million bushels. survey based estimate of 1993 U.S. com marketing year and it is shown in Table I. still projecting the U.S. soybean yield to be Despite this, carryover is still only expected production. The survey showed corn As you can see, we are coming into the year 33.8 bushels per acre on the harvested to be 190 million bushels or 9.5 percent of production would be 7.4 billion bushels, with about 25 percent of what we used this acres. While this number is considerably use, which is tight. Historically, fundamen- over 2 billion bushels below last year's past year. When you add that to even this below last year's yield of 37.6 bushels, it tals would suggest a price over $7.00 for record-breaking crop. year's smaller crop, we are expected to end would still be the 5th highest on record and this tight of a carryover. But it's obvious the up with 17 percent more than we needed at only a little below the 2nd highest yield of market is very cautious, given the sharp The U.S. yield is expected to be 116 bushels the end of the 1993-94 marketing year. 34.2 bushels per acre. drop-off in prices after the report. Was that per acre, 15 bushels below last year's just technical, or does the market have a phenomenal yield and about 6-7 bushels Feed use is expected to drop off some due Estimated production is 1.9 billion bushels' different idea of just what the fundamentals below the 30-year trend. Remember, the to higher com prices, lower relative wheat as shown in Table 2. The two biggest fac- are? yield is calculated only from the harvested prices and more feed quality wheat. Exports tors in the price increase are the 1.99 million acres; the drowned out acres are not are expected to drop off due to higher prices, acres that farmers weren't able to plant, and Strategy: Unless the market has already averaged in. the world economy, and rest of the world the 1.97 million lost after planting. rallied sharply from the new crop price production. Overall, this lowers use, but use levels of $6.30 as of this writing, consider The big cuts, of course, are coming from will still be larger than production, which Use is expected to drop off significantly holding unpriced beans for a rally. But be Iowa, Minnesota, Missouri, South Dakota will lower ending stocks. with the higher prices and this past year's ready to price into the market as prices and Wisconsin. It also must be remembered good South American crop, and their ability reach their previous highs. Watch the basis that about 20 percent of the cutback in Strategy: Corn prices are expected to to increase plantings this winter. Crushings being offered to determine the proper tool production is due to the 5 percent increase average about $2.35 per bushel, which ad- are expected to be off 30 million bushels with which to forward price your beans. in the set-aside acres. justed seasonally, would translate into $2.20- 2.25 at harvest. If you have not priced CATTLE Michigan is projected to harvest'2.2 million any new crop, consider doing so and then acres, compared to 2.3 a year ago, from.the price more on rallies. Cattle slaughter is running above year ago If we have much of a rally from here, con- 2.5 planted. The state yield is expected to be levels as the Cattle-On-Feed Reports would sider forward pricing. 110 bushels per acre compared to last year's For those who have priced a significant suggest. However, with weights being off 3 105 bushels of "something" per acre. And amount, consider waiting for a sharp rally, . percent, beef production has not been much There has been pressure. put on feeder prices production is expected to reach 242 million but be ready to 'pull the trigger. I expect at different. This has helped prices and should with the increase in feed prices. Higher bushels, about the same as last year's, but least one early frost rally. Watch the basis continue to do so. As we go into fall, prices feeder prices in the winter and spring will hopefully of a better quality, if the first offered on new crop contracts; in some are expected to drop marginally in a mean some red' ink for cattle sold at the freeze will hold off. cases, a hedge-to-arrive appears to be a bet- seasonal pattern and with increasing above prices. However, the supply of ter alternative. weights. As of the middle of August, fall feeders is not burdensome, so don't expect The US DA also released ly/Demand Balance Sheet which incor- its S upp- futures' were in the $75-76 range which is a to see much of drop-off in prices .. about where fundamentals would suggest. . Table 1 Table 2 j Table 3 Supply/Demand Supply/Demand Supply/Demand Balance Sheet For Balance Sheet For Balance Sheet For CORN WHEAT SOYBEANS USDA USDA USDA Hilker USDA Hilker Proj. Proj. Proj. Proj. Proj. Proj. 1991-92 92-93 93-94 1991-92 92-93 93-94 1991-92 92-93 93-94 Corn Acreage (MillionAcres) Wheat Acreage (MillionAcres) Soybean Acreage (MillionAcres) Acres Set-Aside and Acres Set-Aside and Acres Planted 59.2 59.3 59.3 Diverted 4.7 3.5 7.0 Diverted 10.0 3.5 0.5 Acres Planted 69.9 72.3 Acres Harvested 58.0 58.4 58.2 Acres Planted 76.0 79.3 73.7 72.1 Acres Harvested 57.7 62.4 Bu./Harvested Acre 34.3 37.6 35.2 Acres Harvested 68.8 72.1 64.0 63.9 Bu./A. Harvested 108.6 131.4 116.0 BuJA. Harvested 34.3 39.4 40.0 Stocks (MillionBushels) Stocks (MillionBushels) Beg. Stocks 329 278 325 Stocks (MillionBushels) 1521 1100 2150 866 472 529 Production 1987 2197 2045 Beg. Stocks Beg. Stocks Production 1981 2459 2556 Imports 3 2 2 Production 7475 9479 7423 5 Imports 41 70 75 Total Supply 2319 2477 2373 Imports 20 6 Total Supply 3001 Use: Total Supply 9016 10,585 9,583 2888 3160 Use: Crushings 1254 1270 1275 Use: Food 789 830 845 Exports 685 765 720 Feed 4878 5250 5150 1550 Seed 94 93 94 Seed, Feed and Food/Seed 1454 1510 Feed 253 194 375 Residuals 102 112 98 Total Domestic 6332 6760 6700 Total Domestic 1136 1117 1314 Total Use 2041 2152 2093 Exports 1584 1675 1475 7916 8175 Exports 1280 1355 1550 Ending Stocks 278 325 280 Total Use 8435 Total Use 2416 2472 2464 Ending Stocks, Ending Stocks 1100 2150 1408 Ending Stocks 472 529 696 Percent of Use 13.6% 15.1% 13.4% Ending Stocks Percent of Use 13.9% 25.5% 17.2% Ending Stocks Regular loan Rate $5.02 $5.02 5.02 Regular loan Rate $1.62 $1.72 $1.72 Percent of Use 19.5% 21.4% 28.2% Regular loan Rate $2.04 $2.21 $2.45 U.S. Season Average U.S. Season Average Farm Price.S/Bu. S5.58 S5.50 S5.75 Farm Price.S/Bu. S2.37 S2.07 S2.35 U.S. Season Average Source: USDA & Hilker Source: USDA & Hilker Farm Price. S/Bu. S3.00 S3.24 S2.75 Source: USDA & Hilker Michigan Farm News Limited Liability Companies - Will it Work •• ....... August 30, 1993 ...... ••••••••,.. •••••~.'I ••••••• 1• . ••••'l••• ~:.. for Your Operation? .r••••••. •••• ,j ••• Ralph E. Hepp Agricultural Economist Department of Agricultural Economics Michigan State University Advantages of the LLC An LLC is a hybrid entity that is taxed as a partnership while providing limited A person may become a member of a limited liability company by making a E~RM•••••••• • ' J.::;. •••• ~ •••••••• The limited liability company (LLC) is a liability protection for all of its members. For federal tax purposes, the income and capital contribution which is accepted by the company as prescribed by its operating agreement. BUSINESS new form of business entity for Michigan expenses of an LLC, like a partnership, which was authorized by Act No. 23, Public Acts of 1993, effective June 1, 1993. pass-through the business entity and are taxed only at the member level. A limited liability company must have at least two members. Unless otherwise OUTLOOK Prior to the limited liability company alter- However, all members of an LLC, like the provided by law or in an operating agree- native, two or more individuals could shareholders of an "S" corporation, have ment, a person who is a member or LLC Planning Pointers operate a common entity as a partnership or limited liability for the LLC's debts and manager, or both, of a limited liability com- a corporation. Now the option of the limited claims against the LLC. No member has the pany is not liable for the acts, debts, or Since general partners in a partnershi p have liability company allows a third alternative personal liability of a general partner, obligations of the company beyond hislher unlimited liability, the limited liability ad- business organizational structure for in- which is the characteristic of a limited investment. vantage for members is a very desirable dividuals. partnership. feature for a business organization. The owners can avoid the unlimited liability The business entity is an unincorporated Federal Tax Treatment of LLC responsibility by incorporating the business, association having two or more members but a corporation has income tax, levels of and is formed under the rules and regula- The state of Wyoming passed legislation In other states, the IRS has also held that the regulation, and other attributes that are not tions prescribed in Act No. 23. Persons who authorizing an LLC in 1977, but it was not conversion from a limited or general acceptable to small family business contribute capital or perform services to a until 1987 that the IRS issued Rev. Rul. partnership to an LLC does not effect a operators. limited liability company are called "mem- 88-76, which ruled favorably on the clas- termination of the partnership or cause gain bers." The appropriate term for the con- sification of the Wyoming LLC as a partner- or loss to be recognized. The LLC is treated The "S" corporation partly addresses the in- tributor to a partnership is a "partner" and ship for federal income tax purposes. as a continuation of the existing partner- come tax questions, but imposes limitations to a corporation is a "shareholder." ship. on the number and types of shareholders, the Other states have passed LLC laws and they allowable classes of stock, and the flow Although the characteristics of the limited also meet the revenue ruling of classifying If the business is operated as subchapter "S" through of losses to shareholders. liability company parallel those of a limited the company's ,net income as partnerships or regular tax-paying corporation, the cor- partnership and a subchapter "S" corpora- for taxation. Since the Michigan legislation poration must be dissolved and a new LLC However, more paper work is required to tion, there are differences in organization is new, the IRS has not ruled on the tax entity formed. There may be ordinary and protect minor owners. LLC's are subject to and regulation. This article will explain the issues, but it's expected that Michigan will capital gain or loss income tax implications rigorous disclosure, recordkeeping and characteristics of the business entity. obtain partnership taxation for the LLC from changing a corporation to a LLC. reporting requirements that do not apply to business entity. general partnerships. Business Characteristics of an LLC There are many unanswered questions about how lenders. major suppliers and other firms An LLC is a separate legal entity like a cash, property, and services rendered, and which the company is formed, the mailing will transact business with a limited liability partnership and corporation, distinct from recognize binding obligations to make such address for the company and the initial company, but initial advantages of the busi- its owners, that has full powers to conduct contributions. resident agent, a statement if the company ness organization appear favorable to family business in its own name. The business will be managed by a manager rather than owned and operated businesses. provides management through its members Articles of Organization the members, and the maximum numberof or delegates this responsibility in the operat- years of duration of the company. As we become more familiar with the opera- Articles of organization are filed with the tions of an LLC, the advantages and disad- ing agreement to an annually elected Department of Commerce to get a limited The name of the company must not dupli- vantages of this new business form will be- manager. liability company recognized in Michigan. cate names used for other LLC' s, partner- come clearer. Explore the features of the The articles of organization shall contain ships or corporations and must include the limited liabili ty company with your account- The LLC's operating rules come from the the name of the company, the purposes for words "limited liability company" or con- ant and attorney. and evaluate whether the operating agreement prepared by the mem- bers. The operating agreement has the same tain the abbreviation "LLC" or "LC." LLC has advantages for your situation. purpose as the operating agreement prepared by partners in a partnership and Dissolution of an LLC corporate by-laws in a corporation. The operating agreement regulates the business A limited liability company is dissolved activity and the relationship among the and its affairs shall be concluded upon the members. happening of the first to occur of the fol- lowing: Unlike "S" corporations, the LLC is not restricted in the number of members nor are 1. At the time specified in the articles of members restricted for corporations, organization or an operating agreement. partnerships, pension plans, and other en- tities. 2. Upon the happening of events specified in the articles of organization or an operat- Trailer Mounted Stationary LLC's are generally subject, however, to ing agreement. rigorous disclosure, record keeping, and 3. By the unanimous consent of all mem- Patz@Offers Open-Top Mixers reporting requirements that do not apply to general partnerships. LLC' s allow contribu- bers. Four notched, 24-inch augers mix fast-even square-baled dry alfalfa tions to capital by members in the form of in limited amounts. 4. Upon the death, withdrawal. expulsion, bankruptcy, or dissol ution of a member or Self-aligning auger bearings mounted outside. the occurrence of any other event that Flanged auger tubes for easy removal. Markets continued from page 6 terminates the continued membership of a Roller-chain reduction with sealed oil bath and planetary gear drive HOGS member in the limited liability company, for the augers. unless either of the following applies: On trailer models, the feed discharge features a hydraulically powered Hog slaughter has been coming in at levels 3. Within 90 days after the tennina- door and augers. below what the June Hogs and Pigs Report would have suggested, although heavier tion of membership, a majority of Electronic scales precisely weigh total mixed rations. weights have partially offset the lower than the remaining members, voting in ac- For trailer models: 540 R.P.M. PTO. expected slaughter. This has kept hog prices cordance to the terms of their operat- higher than expected. ing agreement or according to the For stationary models: electric motors. share of distributions of the com- Capacities of 190, 240 and 290 cubic feet (bigger models available At this point, I would expect hog prices to pany, consent to continue the busi- soon). gradually fall off through October in a typi- ness of the company and to the ad- mission of one or more members as Stainless steel bottom liner available. cal seasonal pattern to about the $43-44 range. Be watching for pricing oppor- necessary; and Ask us about Patz financing with affordable rates and 24, 36 or tunities that would let you lock in some of 48-month terms. your production at higher levels. b. Management of the limited liability company has not been The last Hogs and Pigs Report sh?wed a delegated to managers. an operating decrease in breeding numbers. ThIS goes agreement does not allow an assig- nee to become a member other than Copeland Surge Sales & Service, Inc. Wylie Implements, Inc. against the hog-com price ratios we have seen, and some other reports. by unanimous consent of the other Fowlerville - (517) 223-9833 Kent City - (616) 678-7732 members, and the busi ness of the The structure of the pork industry is chang- company is continued as provided Miller Construction & Equipment, Inc. Westphalia Electric, Inc. ing rapidly to larger and larger units. These for in an operating agreement. West Branch - (517) 345-2499 Westphalia - (517) 587-3983 large units typically have lower costs d.u~to 5. Upon the entry of a decree of judicial economics of scale and higher productIvity. I do not see them cutting back at the price levels we have seen. dissolution. Gene Stambaugh Equipment Ubly - (517) 658-8817 Plliz Michigan Farm News August 30, 1993 Safety Signs Warn Motorists of Left Hand Turns is preparing to turn left into a farm yard or by 18 inch bright yellow signs alert We've all seen it happen or even ex- field. motorists that you may be making a left perienced a close call oursel ves. An anxious hand turn without warning. driver can't wait to get around a large piece As you prepare for a hectic fall harvest of farm equipment that's moving way too season, be sure to make these road safety According to MFB Promotion and Educa- slow in their opinion. Once on-coming traf- caution signs a part of your equipment tion Department Manager Julie Chamber- fic clears, the unaware motorist prepares to readiness checklist. Available in either hard lain, signs will delivered to county Farm pass in the left hand lane, just as the farmer plastic or self adhesive vinyl, these 12 inch Bureaus approximately four to six weeks after the group order is placed. For ordering information, contact your county Farm Bureau office, or MFB's Promotion and Education Department, From Farm Bureau Insurance at 1-800-292-2680, extension 3213. Be Careful on Public Roads This Fall About half of farm equipment accidents • Be sure you can be seen. Along with on public roads involve collisions with your flashing lights, clearly display an other vehicles. The rest are single-vehicle orange triangular SMV emblem on mishaps -- jackknives, upsets, runs off the your vehicle. Be sure the emblem is road, and collisions with stationary objects not mud-encrusted, faded, or im- like bridges and culverts. properly mounted. • Keep wagon tires properly inflated, Here are steps you can take to prevent road- and make sure your hitch and load way accidents: are secure. Nothing should stick out • Be sure you can see. Clean cab win- far enough to catch on tree branches dows. Keep your lights and wipers in or be struck by passing vehicles. Ob- good condition. serve regulations concerning length, width, weight, lights, reflectors, safety chains, and warning placards for big loads or hazardous materials. • Move wide machinery only during daylight hours when traffic is light. Before moving large or heavy loads on unfamiliar roads or driveways, check the routes for hazards -- under- passes, weak bridges, low power lines, or narrow passages. Use a second vehicle with flashing lights to accompany large pieces of equipment. • Allow only licensed drivers to transport farm machinery for any dis- tance on a public road. Young workers who operate tractors in the field may lack the knowledge and judgment they need to deal safely with difficult traffic situations. • Never carry extra riders. F ArvlILY Hl<:AI:rn INslmANCE • Keep driveways and access lane .. PROPOSAL FARM O,"VNKRS/OPERATORS. sightlines clear. Cut away growth blocking the view, and avoid planting tall crops where they might hide a view of oncoming traffic. • If traffic is closer than a fifth of a mile, Assoc C.J o (.:MM Sl)l) 01:\-1111"11 stop until it passes. It can take as long as 10 seconds to get fully onto or across a road from a dead stop, and a car moving at 55 mph would travel about 800 feet during that time. • Drive cautiously, with your flashing lights on. Try to keep your vehicle on your side of the road. Pull over to let Cllrrcnl Hc;.lth Insural1l:e others pass if necessary. Watch for soft shoulders, ditches, culverts, posts, railroad crossings, and other hazards. • When road and load conditions are nor- mal, drive at full road speed to reduce the speed difference between you and the traffic following you. But if the road is rough or slippery, or your vehicle is hard to handle, slow down. In these tough economic times all business owners are looking for ways to improve their bottom line. • Keep the load within your tractor's ability to slow and stop. Be sure your Now Farm Bureau can help with a new money savin.g group Health Plan trom Blue Cross Blue Shield 'of Michigan." tractor's brake pedals are locked - - .- ~ .. , . together to ensure even braking when Thgse new plans are guaranteed iss~~ nO'matter what your health history, locally serviced by our 69 county offices' and 400 agents st.at~wide, you drive at transport speeds. and competitively priced to save' farm Qwners and operators' hundreds or even thousands oLdollars off their health insurance bilL So, if you're a sole proprietor or if you have one or more employees, you should call Farm 8ureau today for benefit and rate- information: • Signal for turns if possible, When turn- • - -, • ,1_ ing right, don't swerve into the op- - .... ItIICHICAN · -.. posite lane. Before turning left, make sure no one is trying to pass. Avoid , _ f:A"1tI BUREAU sudden or unexpected maneuvers. Extendable rear view mirrors will help FOR A FREE. NO OBUGATlON RATE QUOTE - All OUT THE COUPON BELOW OR CAll DIRECT 1-800-292-2680, EXT. 3239 OR 3240. you keep track of what's going on be- Pleasemailto: Michigan Farm Bureau hind you. Membership Services P.O. Box 30960 • If something goes wrong with your Lansing, MI 48909 vehicle, pull off the road as far as you can. If possible, set out reflectors and Please Print flares to warn other drivers. Name CurrentHealthInsurance • When you're a motorist and you see a Address Numberof FullTimeEmployees o Soleproprietor farm vehicle, slow down and be (1 persongroup) prepared to stop. Before passing, o 2-4 0 5-9 check for oncoming traffic and to the rear to see if someone is trying to o 10-24 0 25 and over pass you. Michigan Farm News RCAP - Keeping Your Farm in Compliance With Labor Regulations -. August 30, 1993 , IlfI 1\\\ At left: AI Dietrich, a partner in the NOTICE Farm Ridge View Orchards in Ottawa Standards Act section dealing with protective County, and a worker review the equipment. posters the operation recieved as sub- "This manual is the easiest, best and most scribers to RCAP. The farm employs organized method to quickly find the eight full-time workers and as many as regulatory information I need," said Howard 80 seasonal workers for harvesting and Kelly, MFB legislative counsel. "This manual packing apples, cherries, and is like a dictionary: you don't need all of the asparagus. "I'd highly recommend information, but when you do need informa- RCAP, especially to someone who's un- tion, you need it now, you need it right. and all familiar Withall of the regulations, " AI in one place." said. "Farmers shouldn't wait until they're hit with a lawsuit to become Additional products and services under aware of all the different regulations. A development include: Employee Policy lot of growers are finding out the hard Manuals, Agricultural Job Descriptions, Re- way." quired Training Programs that can be modified to your farm's specific conditions including video and audio tapes, manuals and Discrimination in Employment, Disabilities on-farm training programs, English/Spanish and Employment, Payment of Wages, translation services (which are now available), Records-Posters-Notifications, Farm Labor on-farm compliance audits and a legal assis- Contractors, Social Security, Workers Com- tance referral system. pensation Insurance, Unemployment In- "Right now, the rules and the regulatory surance, Agricultural Labor Relations, burdens are primarily on those who hire," Transportation, Labor Camps, OSHA Stand- Anderson said. "The rules general industry has ards, Sanitation Standards and Pesticides. had are being shuffled down to agriculture and Last winter a farmer stood up during a promulgated and the courts issue interpreta- Each section will cover several provisions. those who do a lot of hiring are going to find Worker Protection Standard presentation and tions of the rules or regulations. As a sub- For example, the Pesticide section will cover this program very helpful up front." said, "Right now, the only farmers who are scriber to the manual, you will receive regular the Worker Protection Standard, Worker and To subscribe to an RCAP service or for really knowledgeable about the regulations updates to keep you current on these changes. Community Right to Know requirements, additional information on the program, are those farmers that have either been fined The RCAP Manual sections include Pesticide Recordkeeping, requirements for contact your MFB Regional Representative or have had to go to court over some issue. If Wages and Hours, Child Labor Regulations, pesticide applicators licenses and also or Craig Anderson at 1-800-292-2680, ex- we'd only known what the regulation was, we Independent Contractors, Immigration Act, provisions of acts such as the Fair Labor tension 2311. could have saved a lot of money. Farmers want to comply to the best of their ability, but if they don't know what the rules are, it's difficult to comply," he concluded. That sentiment is more common than ever with the rapid increase in farm regulations. It's becoming more difficult for farmers to keep track of the many rules and regulations that affect their operation. In response to member-policy calling for help in addressing labor regulatory questions, Michigan Agricultural Cooperative Market- ing Association (MACMA), and the Michigan Farm Bureau, have developed RCAP - the Regulatory Compliance Assis- tance Program. This program is designed to provide concisely worded, regulatory infor- mation and implementation aids to sub- scribecs. RCAP is working closely with state and federal agencies, Michigan State Univer- sity staff, attorneys and farmers to make sure the information is correct and useful. "It can be said right now that RCAP will Compare the interest rates. The interest rate on the ~lemberLine VISA be an important and valuable program for and Gold ~lasterCard is just 15.9 % A.P.R. -one ofthe lowest interest rates Michigan agriculture," said Dr. Allen E. available. In addition, you pay 110i,lureslon new credit card purchases when Shapley, MSU agriculture labor specialist. your full balance is paid by the due date. "MSU is not going to abandon programming in the area of agricultural employment. The Compare the fees. The ~lemberLine VISA has no annual fees, no mem- programming of the two organizations should bership fees and no application fee. The annual fee for the Gold ~lasterCard be very complementary in meeting the needs is $20 - far lower than the fee charged for most gold cards. For added of agricultural employers and employees for savings, the $20 fee is rebated every year that you make $3,000 or more in a long ti me to come." net purchases. The program currently has two subscrip- tion packages available - the RCAP Newslet- sM Compare the premiums. Both the r-.lemberLine VISA and the Gold ter Package for $50.00 or the RCAP Manual The Farm Bureau MemberLine VISA & ~lasterCard offer a wide array of complimentary features and options for Package for $200.00 (each, plus tax). A yearly Gold MasterCard. Two good reasons your protection and peace of mind. And when you carry a Gold ~lasterCard, renewal fee will continue basic package ser- you'll enjoy the added advantages of a higher credit line, executive travel vices and manual updates to subscribers. Both why it pays to compare before you privileges. emergency road assistance, purchase protection insurance and a packages contain the RCAP Newsletter Ser- apply for a credit card ... warranty extension program - valuable "extras" you and your family can vice and a Required Poster Pack. The Manual depend on. Package also includes the RCAP Farm Manual for Michigan Farmers. Easy to apply for. Simply remove this page from the magazine and fill out The Required Poster Pack contains 15 the application on the reverse side. Lenerfold and staple the form with the bright yellow posters, made of weather resis- mailing address on the outside. No postage necessary! tant material, that are required by various regulations to be posted by employers. If you ".MICHICAN employ one or more workers, you are required to post many of the posters. The RCAP ••• FARM BUREAU o FI RSrOf AMUIO\.Bank Manual covers in detail the requirements of each poster. The RCAP Newsletter is edited to answer the question, "What do I need to do today to be in compliance?" lt will use Q & A seg- ments to answer the questions you have about No Postage Necessary current or new regulations. Checklists will be included on a regular basis for subscribers to I If Mailed Within review their operations to find potential The United States trouble areas before they become problems. Key court cases will be reviewed that impact Business Reply Mail Michigan agriculture. First Class Permit No. 2334 Kalamazoo, MI "One of the most frequent questions we heard from the field this past year was: 'what Postage will be paid by addressee do I have to do to make sure I'm in compliance when the inspector comes around?'" said Craig Anderson, manager of RCAP. "The RCAP Newsletter checklists will be designed FIRST OF AMERICA BANK to assist you before the inspector comes." The RCAP Farm Manual for Michigan REVOLVING CREDIT DIVISION Farmers is designed to provide comprehen- ATTN: FARM BUREAU MEMBER SERVICES sive detailed information on the regulations P.O. BOX 2349 that affect agricultural and related ~pera~ions. KALAMAZOO, MI 49003-9917 There will be 18 topic related sections In the basic manual. Within each topic, the manual covers several regulations that affe.ct the topic. New regulations continue to b.e Imple- mented, rules for existing regulations are 1.1 •• 11.1 •• 11 ••• 11 ••••• 11.1.1 •• 1.1 ••••• 111 ••• 11 •• 1.1 Michigan Farm News Manage Your Diesel Fuel Inventory for New EPA Regulation October 1 -. August 30, 1993 must use a diesel fuel containing less than .05 percent sulfur, and must not be dyed If you're using diesel fuel in your farm blue. equipment, as well as your truck, you'll need to either maintain separate tanks for According to Underwood, the process of highway and non-highway uses, or use only desulferizing fuels requires severe hydro- low-sulfur diesel fuel starting Oct. I. treating to remove the sulfur, which also removes much of the lubricating New Environmental Protection Agency capabilities of the diesel fuel. "To compen- regulations regarding the content of sulfur sate for the loss of lubricity, an additive and aromatics in diesel fuel, as well as the should be added to the low-sulfur #2 fuel to cetane number, will go into effect at that prevent accelerated engine wear. time. Off-road and on-road fuel will be dif- ferentiated by both sulfur and color, accord- Off-road vehicles (tractors, combines, sta- ing to Farmers Petroleum Cooperative, Inc., tionary engines) are not required to use the Sales and Marketing Manager, Tim Under- low sulfur fuels. However, licensed farm wood. vehicles are not exempt from the new regulations and must use low sulfur "It's important that farmers have a good whether they are being used on public roads understanding of these new regulations, and or not. their fuel inventory properly adjusted by Oct. I," said Underwood. "The EPA has the If you intend to convert an existing tank authority to sample and test all diesel fuel To avoid confusion about which diesel fuel can be used when and where, Under- currently storing #2 diesel fuel, to store low and violations can result in fines of up to wood suggests that producers consider using FPC's Gold Flame LS diesel fuel. sulfur #2 diesel, you must completely $25,000 per day, per violation." empty the tank to assure that the low sulfur The new regulations allow fuels with a into this category) must be dyed blue and fuel will not be contaminated, in order to Diesel and heating oils with a sulfur content sulfur content of more than .05 percent, but can't be used on the highway. meet EP A specifications. of more than .05 percent will be dyed a blue not exceeding .5 percent, to be used as color and will be illegal to use in vehicles heating fuels. These fuels (similar to Fuels used in trucks, autos, or any vehicle "Farm Bureau members can avoid a lot of designed for highway use. present day #2 fuel oil and diesel fuels fall that can be licensed for use on the highway confusion by purchasing and using Farmers Petroleum Gold Flame LS premium diesel fuel with a lubrication and cold flowable additive package already added," said Un- APPLY NOW derwood. "Using Gold Flame as your only diesel fuel will eliminate the possibility of for a Farm Bureau MemberLine VISA or Gold MasterCard contaminating low sulfur diesel with a dyed, high-sulfur diesel, while also provid- FARM BUREAU MEMBERLlNE- APPLICATION ing excellent engine wear protection." FIISl Name Middle IniIial Lasl Name Social Security Number Present Street Address Dale 01 Birth For more information on the new regula- Mos. tions, contact Farmers Petroleum Horne Telephone Number City. Stale (Include Area Code) Cooperative at 1-800-292-2680, exten- I.L Previous Address (d less than two years al present address) City Slate Zip sion 3301. ...J ~ a: ,::) Present Employer Income !rom alimony. child support. or maintenance payments need d you do not wish to have ~ as a basis lor repaying this obligation. not be revealed 15 Percent of F.armers o >- ( Employer's Telephone Number ) Position rme at Present Yrs. Employment Mos. Gross Income from Employment o 0 Monthly Yearly Operate 57 Percent of City, State. Zip Code Other Income o 0 Monthly Yearly Source 01 OIher Income Michigan Farm Acreage Previous Employer (d less than two years at present employer) rme at Previous Employer Yrs. Mos. The number of farms in Michigan during Nearest Relative (nolliving with you) Address 1993 is estimated at 52,000 farms, down 2,000 from the previous year, according to FI1Sl Name Middle Inllial Lasl Name the Michigan Agricultural Statistics Ser- 'E g Present Street Address Date 01 Birth vice. This is the first yearly decline since u Mos. u 1990. Michigan has 10.7 million acres of &U City, Stale Zip Code Horne Telephone Number E (Include Area Code) land in farms, down 100,000 acres from ~ Previous Address (d less than two years at present address) City State Zip the previous year. The average size of a Michigan farm in 1993 is 206 acres. !z Present Employer Income !rom alimony. child support. or maintenance payments need not be revealed d you do not wish to have ~ as a basis lor repaying this obligation. Of all Michigan farms, 8,000 were in ct o Position Time al Present Employment o the $100,000 and over economic sales ::; Employer's Telephone Number Monthly ( ) Yrs. Mos. Employment 0 D.. D.. Gross Income !rom Yearly class, unchanged from the previous year. ct City, Stale, Zip Code o Monthly These large farms operated a total of 6.1 6 o Other Income 0 Yearly Source 01 Other Income Previous Employer (d less than two years at present employer) rme at Previous Employer million acres, up 100,000 from last year. a: Yrs. Mos. ,::) Farms with sales between $10,000 and o Nearest Relative (not living with you) $99,999 accounted for 16,500 farms and >- Monthly Payment 3.1 million acres. This is a decrease of en Credit References Monthly Payments Balance Due o Ottrv'Buying Home 0 Other 0 Rent W $ 1,500 farms and 200,000 acres. Farms with o Z Morloage Holder or Landlord Mortgage Balance sales between $1,000 and $9,999 repre- w $ a: sented 27,500 farms and 1.5 million acres, w Estimated Value I.L o Checking Account (Bank Name) $ a decrease of 500 farms with land in farms W a: unchanged . .... o Account (Bank Name) Have You Ever 0 Yes w C Savings Declared 0 No A farm is defined as "any estab- BankrupIcy? a: lishment from which $1,000 or more of o IMe hereby certify thai each 01 the answers on this application is true agricultural products were sold or would Optional Group Credit Insurance Please check your card preference (choose one design only) and CXlITect, and is made lor the purpose 01 obIaining a loan or aedt from normally be sold during the year" and must the Bank. I/we certify that an debts owed whether individual. joint or The cost to you. the Primary Account holder o contingent have been disdosed above and thai none 01 my/our debts are be operating on June I. w (applicant). is $.60 per $100 lor each month's o SCENIC VISA STANDARD VISA deinquen1 or in default. except as IMe have indicaIed above.1Me hereby o average daily balance. The insIr.lnce will be- o~-r--a. Land in farms includes: crop and live- z authorize the Bank 10 invesligaIe my/our aeOt rec:onl1o the extent it deems ct come ellective when your aedil begins. You necessary and 10 Yerily my/our aecil. employment and income references. stock acreage, wasteland, woodland, pas- a: must be less than age 7110 be eigibIe lor em. I/we lurlher authorize and instruct any person or consumer reporting ,::) en erage. A certificate which more IuDy desaibes agency to Ilmish to the Bank allY information thai ~ may have or oblain II ture, land in summer fallow, idle cropland, the insurance wi. be sent when your aedit response 10 such aedil ir4Jiries. I/we ~ agree thai this appIicalion ~ application is appIOY9d. Underwrillen by The shall bealme the property 01 the Bank, whether or no! ~ is approved. and land enrolled in the conservation ~ - C Prudential Company 01 America. Newn. New OR Apply for a Gold MasterCard IIwe agree thai d this appicalion is accepIed and a card or cards are reserve program and other set-aside or w .leisey, and Prudential Property and Casually issued thai any use 01 the card(s) will be governed by the terms and a: Insurance Company, Holmdel. New Jersey. o CXlIdlions oltha Bank's VISAlMasterCard Agreement and Disclosure commodity acreage programs. It excludes o Those choosi1g 10 enroll wi be maied a cer. YES. I'd ike the extra freedom and t1exbily o flllS1" provided before or with deWery 01 the card(s). IIwe assume, ~ more than all land operated by establishments not D.. 01 a Gold MasterCard nstead oItha VISA one joinlIy and severally, iability lor all charges ino.ned in any use 01 tiflCale 01 insurance explaining benelils. imita. Ml£UCi\)1.; "" o ,::) tions and provisions and indicating the ellec. card. If I do not qualily lor the Gold the card(s). qualifying as farms. a: MasterCard. consider my application lor the tive dale 01 COYerage. Farm Bureau VISA C3t1. The number of farms in the U.S. is CJ ...J x estimated at 2.068 million, down one per- Applicant's Signature Dale ~ 0 YES, PIeae enroll me In the cent from 1992. Total land in farms is 978 o Group Cndit Inu'Ince Prognm. X ~D.. o ADDITIONAl CARD FOR AUTHORIZED USER Co-AppIicant's Signature Dale million acres, down 1.8 million acres. The o rate of decline in the number of farms Applicant's Signature Print name here follows the historical trend, while land in farms declined marginally. GrecePMtod._ Repe~ofthe The average farm size increased from None lor scenic or standard VISA $20 lor Gold MasterCard New Balance Puree..- '01' Cash Advance Fee - none Transaction Fee - none 468 acres in 1992 to 473 in 1993. Texas 15.9% Average Daily Balance (rebated every year net annual Late Fee- $10.00 held its position as the state with the most (exduding new purchases) purchases exceed $3.(00) 25 Days. starting with the billing CNer Umit Fee - $10.00 farms, 185,000, up 2,000 from a year ear- date on statement' Minimum Finance Charge - none 'Finance charges are chatged on cash advances and MemberlJne checks !rom !he date \hey are posted. lier. Farms in the $100,000 and over sales class comprise 16.4 percent of the total Please letterfold and staple this form with the mailing address on the outside (reverse side) while operating 54.4 percent of the nation's farmland. Michigan Farm News August 30, 1993 II. II Manure Management Practices Win ENVIRONMENTAL Swartzendrubers White Pine Award Below (I-r) Sen. Joel Gougeon (R-Bay City) looks on as brothers Paul and Ralph, and father George Swartzendruber, are congratulated by MDA Director Bill Schuette. ~V~STEWARDSHIP e .... ~ ~Jl~ Research Promises Plants that Adapt to Your Needs in the Future A Michigan State University scientist has natural polymers - cellulose and related used a common weed to find a way to alter polysaccharides. the properties of plant fibers used for making The cell walls of all plants, including both paper and animal feed. trees and plants with little or no woody tissue, The breakthrough, reported in the current such as corn and alfalfa, largely are composed issue of Science, holds promise as the first of complex mixtures of these polymers. step in a scientific journey to change plants Changing the proportions of those for the sake of the environment and the pock- polymers in the cell walls of wood plants mean etbook. fewer toxic chemicals and energy to turn the "This is the first time we've been able to wood into paper. substantially make changes in the cell walls It also could permit the recovery of useful of plants," said MSU Botany Professor Chris byproducts from the paper making process Twenty-five years ago, George ces for future generations. The Somerville. "This is part of the process of that now are discarded. Swartzendruber constructed and started Swartzendrubers have demonstrated that better adapting plants to our needs." Research Summary using one of the first liquid manure systems they can do something about that while Somerville and two post-doctoral as- • There are hundreds of genes thought to con- in Michigan on his swine operation, located maintaining a viable farm operation." sociates, Dieter Reiter and Clint Chapple, trol cell wall biosynthesis - that is, producing near Pigeon in Tuscola County. Even in outline in an article published in the Friday, the chemicals that make the cell wall. those early stages of liquid manure han- The Swartzendruber brothers, Paul and Aug. 20, edition of Science, the development • The MS U research uses standard genetic dling, George made manure injection a part Ralph, manage a 500-sow feeder pig cor- of genetic approaches that alter the composi- methods to inactivate, one at a time, those of his manure management strategy. poration known as Man-Gen-Co, in addi- tion - and thus the strength - of a plant's cell genes. tion to farrowing 60 sows of their own. The wall. • The goal: Figure out which genes the plant That continued practice and commitment to operation annually feeds out 6,000 pigs a The Implications doesn't need to grow properly and survive, but • It may be the first step, Somerville said, in which do cause the plant fibers to be hard to utilizing farming and fertilizer practices year, in addition to farming 1,000 acres of growing genetically modified woody plants process or digest. that protect the environment by sons, Paul com, wheat, and navy beans. that can be converted to paper with less en- By contrast, the production of plastic and Ralph, have earned the operation, vironmental pollution. plants meant adding genes to plants. known as Thumb Swine Enterprises, the Fields are soil tested annually, and manure Another MSU scientist, Michael Allen. • Because the cell walls comprise the main White Pine Award, sponsored by the is either spring or fall applied by injection fiber component of domestic animal crops, sees the new research as exciting. An associate Michigan Legislature. as needed, based on manure analysis and the results also point the way to developing professor of animal science and an expert on soil needs. crops more easily and efficiently digested by animal nutrition, Allen said creating crops "The white pine tree is our state tree and livestock. Developing such a crop could lead consistently easy to digest can mean big symbolic of our abundant natura.l resources "We haven't broken it down into a dollar to significant economic savings. savings in food production. here in Michigan,'" said Senator Joel value, but based on MSU figures, testing is The test plant is Arabidopsis (a RAB i dop "I believe it's one of the most meaningful Gougeon (R-Bay City), who presented the definitely paying off," said Paul. "By sis), a weed of the mustard family. It is the areas o( research," Allen said. "If we can award. "This farm is: 'surrounded by the taking soil samples, we're injecting manure same plant Somerville used to prove that develop genetics. that produce crops with Saginaw' Bay, imd Lake Huron, so it's im- exactly where it's needed, while control- plants can grow plastics. higher fiber and digestibility and get it into the portant that we protect those natural resour- ling odor and preserving nutrients." The research last year was hai led as one marketplaces, it's going to help farmers." of the top science stories of the year by Time The research. which has been in progress magazine. about four years. is funded by the grants from Looking Out For The Environment Somerville describes the cell wall re- search as parallel research on another class, the U.S. Department of Energy. the USDA and private funding. Keeping Your Well Water Safe Is Your Ground Water Vulnerable? or rural Americans. wells vou farm. Listed on the right are for water contamination can Chemicals on Hand: F are the most important ~ome factors that will determine just how careful you need to be. vary greatly. Ag chemical containers If spilled on the soil. would your ag chemical products leach source of water for their family. animals and crops. A turn of the Some combination of four often list on their labels warn- downward instead of binding to tap brings water for drinking. major factors determine whether ings about their potential to the soil? cooking. livestock, crop irriga- an ag chemical is likely to reach leach to ground water. If you If spilled, would your products tion and manv other uses. ground water: properties of the can't find the information you break down slowly in the soil? Because it's so valuable. it's chemical. properties of the soil, need, your Cooperative critical that we all make every conditions of the site. and Extension Service. USDA's Soil Site Characteristics: effort to keep our well water chemical use management prac- Con-servation Service. EPA or Is the water table (ground water) safe. To protect it from contami- tices. Runoff into nearby surface manufacturer's representatives near the surface of your farm- nation. vou need to know as water is also affccted by these can provide information on the land? much a~ vou can about the factors. For each site a~d combi. leaching potential of different ag Are there sinkholes or unsafe chemical~ you use and the land nation of factors. the potential chemicals. wells on your property? If spilled. would your products runoff toward wells or surface water supplies? . Farming Smarter To protect your well water, carefully consider your Soil Properties: choice of chemicals, cultivation practices and other Is your soil porous. allowing management decisions for your crop. soil type, land large quantities of water to move Morton Buildings is leading the industry with: condition, weather patterns and farming situation. through it rapidly? These decisions are especially important if you farm in an environmentally sensitive area. one with high- Is soil organic matter insufficient > New structural designs If' 5O-year coUnn and snow-load protection to help bind spilled chemicals ly vulnerable water supplies. wildlife or water fowl. and slow their movement in the > New structural capabilities (wtth 110 weight Init) Doing a better jOb of managing ag chemicals soil? > New color combinations If' 2D-year protection against red rust doesn't necessarily mean a greater burden for you. > New building styles (iIcUIng aciI rain) It just means everyone must keep farming smarter, Management Factors: to protect the very resources that make our coun. Do yOU store, mix or load chemi. > New exterior applications If' 1D-year wiHHoad protection on tryside such a great place to live. cal; near your wells? > New interior options ~ New sliding door tecJvlO/ogy AUI1aSteeJ8 sIdiIg doors (wtth no Do you fail to properly rinse ag > New ~1mIt) Below the Surface chemical containers? gutter systems If you could look beneath the surface of your farm, Is your chemigation or spraying > New infonnative video tapes If' 5-year wiHHoad protection 011 complete you'd likely find a complex system of rock, sand equipment faulty or miscalj. > New corrosion protection IJIiIdiIg (wtth 110 ~ IndO and gravel .containers" (aquifers) that provide brated? water for drinking, irrigation and other uses. CaI)'DC' Iot3 oIIfc8 todsyI Roughly 97 percent of rural Americans depend on this underground water supply for drinking. Pure ThIS Intormatoon the IS provided Alliance tor a Clean Rural by Adrian, MI (517) 263-(J541 BDO-447-7436 water is impossible to find; nature and mankind Enwonment. a non-proht. Brown City, MI (313) 346-2702 have dissolved all kinds of things in our water. But. non.politlcal organizatIOn Kalkaska, MI (616) 258-2580 ~T~MORTON A_. BUILDINGS most people find it unacceptable to have even the encouragrng enVIronmental stewardshIp and protec100nof tiniest traces of pesticides in their water, no matter water quality. supported by Rockford, MI (616)874-6400 how insignificant. Keep this in mind as you carry out your crop production activities. the makers of chemICals CtoP prolectaon Three Rivers, MI (616) 279-5271 . Michigan Farm News August 30, 1993 1m Soybean Cyst Nematode -.Will it Cost You? Michigan's newest soybean pest is spreading to more Michigan acres, cutting soybean yields by 10 to 85 percent. ' What does it look like, do you have it, and what can you do? Soybean Cyst Nematode (SCN), first At right, MSU Nematode Diagnostician Fred detected in Michigan in 1987 in Gratiot County, has now spread to at least 11 other Warner shows growers what SCN looks like Michigan counties, threatening yields and on soybean roots, during an SCN tour at an profitability for soybean producers. MSU research plot in Saginaw County. A 33-county testing program, spon- sored by MSU and the Michigan Soybean nematode project coordinator. The female Committee, will provide an accurate pic- nematodes swell up as they feed, and are ture of just how widespread the problem has then fertilized by the male. As the female become this summer. swells, it pops out of the root. Eventually the It's believed the nematode made its way female dies after she has laid her eggs, form- into the U.S. from Japan, where it was first ing the cyst. reported 75 years ago. The first U.S. reports "Each cyst can contain as many as 200 of SCN came from North Carolina in 1954 to 250 eggs and will over winter rather and has now spread to 28 other states via easily," explained Thorson. "Unfortunately, contaminated soil or improperly cleaned the nematode is non-responsive to many seed. 1n the com belt states of Iowa, Illinois, chemical control options and yield losses and Indiana, there are very few counties can range from 10 to 85 percent." that aren't infested with SCN. Thorson suggests that soybean growers SCN is a microscopic worm that goes determine if they have an SCN infestation "They're very much smaller than a Symptoms: Above-Ground into the root system of a soybean plant and problem by digging up the roots of a nitrogen fixing nodule - nearly 100 times Above ground symptoms of SCN feeds within the root, according to Peggy soybean plant and looking for small pin- smaller - and they're a white to light cream damage are not unique to SCN. They can be Thorson, north central region soybean cyst head shaped circles on the roots. color," explained Thorson. mistaken for damage from compaction, iron deficiency chlorosis and other nutrient deficiencies, drought stress, herbicide in- jury, or other plant diseases. SCN often has gone undetected for several years because these nondescript symptoms were attributed to other causes, according to MSU nematode diagnostician Fred Warner. A comprehensive testing cam- paign that would sample 2 percent of the soybean acreage in each county will allow producers to help determine just how severe the problem is in Michigan. "Many of the counties haven't been sampled and we expect that this nematode is present in many more counties than just the 12 we've identified thus far," said Warner. "We currently have 300 samples and I suspect we'll receive another 300, so we'll have a fairly extensive survey this year that should generate a lot more information." Growers should look for problem areas in a field, says Warner. The first obvious signs of SCN injury is the appearance of stunted, yellowed, less vigorous plants. These infested areas will vary in their size, often showing a sharp dividing line at the edges between stunted and apparently heal- thy plants. Yellowing of the plant due to SCN will generally occur in July and August, and will start at the edges of the leaves affecting leaves on the entire plant. An area of SCN damage will often ap- pear elongated, usually in the direction of tillage operations. Most severe damage is often in the center of the area, with damage decreasing toward the margins. Such areas frequently develop near a field gate ~ J entrance, wherever equi pment enters a field, or near fences where wind-blown soil may accumulate. Symptoms: Below Ground Roots infected with SCN are dwarfed or stunted. SCN decreases the number of nitrogen fixing nodules on the roots. SCN also makes the roots more susceptible to attacks by other soil-borne pathogens. The only unique symptom of SCN infec- tion is the presence of adult female You can leave your children more A future that includes college, a nematodes and cysts on the soybean roots. They can be seen with the unaided eye, than just your good looks. paid-off mortgage, and enough although observation with a magnifying money to keep the family together. glass is easier. With a plan from Farm Bureau Life Roots must be carefully removed from Insurance Company of Michigan, You live on in your children ... the soil or the cysts may be dislodged. Ob- you can leave them the kind of future and in the life insurance you leave servation of adult females and cysts on the roots of the soybean plant or in the soil is the you want them to have. behind. Call your Farm Bureau only way to accurately diagnose SCN infes- Insurance agent today. tations in the field. Warner suggests that growers get either Extension Bulletin E-2199, "Detecting and .. _ FARM BUREAIJ MAKING YOUR FUTURE Avoiding Nematode Problems," or E-2200 __ @ INSURANCE MORE PREDICTABLE "Soybean Cyst Nematode," for detailed FAIM -..IAU MUTUAl • FAlM IUlEAU LIFE • FARM IUlIAU GURAl • FI ANNUm sampling information. Michigan Farm News II. August 30, 1993 Known Distribution of SCN in Michigan seN Sampling Procedures A laboratory analysis of soil and root or shoot system tissues is usually necessary for can be used for nematode samples. Place diagnosis or long-term avoidance of plant- samples in plastic bags as soon as possible. parasitic nematode problems associated with Nematodes will be killed if the sample is Indicates allowed to dry. It's important that nematodes • soybeans. In Michigan, this service is known are living when the samples reach the lab. provided by the Michigan State University counties in Diagnostic Service Laboratory. Michigan A $10 fee is charged by MSU for analysis Sample Storage with of each combined soil and root or individual Soil and root samples shoUld be regarded Soybean sample. The rate of $9 per sample is charged as perishable. Handle accordingly, and Cyst for lots of20 to 49 samples, and $8 per sample process as soon as possible. Ideally. they Nematode. for 50 or more samples. Pre-payment is should be stored at I0-15C (50-5SF). desired. A $5 fee is charged for all billings. Do not expose them to direct sunlight or Since Samples for nematode analysis should be store them in hot areas such as the trunk of there shipped to: your car. Temperatures greater than 40C haven't Nematode Advisory Service Laboratory (IOOF) will kill nematodes. been any Department of Entomology confirmed Michigan State University cases of How to Submit Samples East Lansing, MI 48824 Samples for nematode analysis are usually SCNin the Upper submitted through the local Extension office. Peninsula, Sampling Instrument accompanied by a completed form. The infor- Take samples with a soil sampling tube, mation requested on the form is essential for it was not included. trowel, or narrow-bladed shovel at a two to diagnosing nematode problems and proper l2-inch depth. Include as many feeder roots recommendations for nematode management. as possible to recover any root-feeding (en- It generally takes two weeks from the time doparasitic) nematodes. a sample is taken until the results are returned to the growers. Sample Size The rapid root and soil assays used for Each sample should consist of a pint to a mineral soils, however. are not always satis- quart of soil taken from a larger sample com- factory for analyzing organic soils. In a few posed of 10 or more subsamples. cases, a bioassay that requires a 45-day in- • Small area (less than 0.5 acres), take at least cubation period is used to analyze organic 10 subsamples. soils. SCN Management Practices • Medium area (l0.5-l.0 acres). take at least 25 subsamples. When this procedure is recommended. the growers will be immediately notified of the delay and will receive the results within two • Large area (I-SO acres), take at least 50 Managing for A voidance subsamples. No one sample should represent months after the sample was received. unfortunately, for many growers in the Growers should make avoidance their top Saginaw area, we had levels up over 400 cysts more than SO acres. Mix subsamples in a priority in combatting SCN. That means keep- clean pail or a plastic bag and submit one pint Results and Recommendations per soil sample," he said. "We can get about a ing contaminated soil from getting into a clean 50 to 90 percent reduction in the population to a quart for nematode analysis. Sample results and recommendations are field, and making sure the seed that you're density for each year the field is out of usually returned to the grower by the local using is properly clean and treated, says MSU soybeans." Samples From Problem Areas Extension agent. The types and numbers of nematode diagnostician Fred Warner. SCN resistant soybeans aren't an absolute Plant-parasitic nematodes feed only on nematodes will be recorded on the assay form "As a farmer, your goal should be to keep yet either. Warner explains that there aren't living tissues and are rarely found in dead along with an indication of whether 'or not non-infested fields uninfested as long as pos- true resistant varieties available; they're just root samples. Therefore, take samples from nematodes are a problem. sible," advises Warner. "Once you have less susceptible to SCN than non-resistant the margin of the problem area where the You will be referred to an appropriate soybean cyst nematode, you have it - you can't varieties. There will be fewer cysts growing plants are still living. Extension Bulletin for recommendations. eliminate it." on the roots of resistant varieties. Those recommendations should be discussed Common sense sanitation practices can be in detail with the local Extension agent or Compounding the problem of SCN resis- Sampling Container very effective in preventing or delaying the tant variety soybeans is the number of races of Either the special nematode sample con- private consultant. spread of SCN to uninfested land. If only SCN prevalent in Michigan. "There are 16 tainer provided by Extension or a plastic bag certain fields on a farm are infested with SCN, races of soybean cyst nematode," said Warner. planting and cultivating of these fields should "Presently we have identified race I, race 3, rfilM;~ Serving Michigan be done after uninfested fields have been race 5, race 6 and race 14 in Michigan." worked. After working in infested fields, A soybean variety that maybe resistant to equipment should be thoroughly cleaned with high pressure water or steam. one race will not necessarily be resistant to another variety. Race I and race 3 seem to be Farm Families is Seed grown on infested land should not be the dominant races in Saginaw County, while used for planting uninfested fields unless the race 5 and 14 are most prevalent in Monroe ~ RADIO NETWORK Our Only Business seed has been properly cleaned. SCN may be County, the two most infested counties in the spread in soil associated with the seed. state. In general, Warner says race 3 is most Since its beginning in 1971, Michigan Farm Radio Network's only objective prevalent in Michigan. has been to seNe Michigan's farm families. This dedication to seNe agricul- Managing Once Contaminated ''I'd recommend growers conduct strip tri- ture is shared by 29 local radio stations in Michigan. Through these sta- Without economical chemical control op- als on their own farms to test the resistance of tions, Michigan Farm Radio Network provides the latest in market analysis, tions, growers basically have few options different varieties," suggested Warner. "I weather and news to Farm Bureau members daily on the following stations: once they confirm that a given field is con- would think that most seed representatives taminated. Rotation and a resistant variety of would be more than happy to help a farmer set Station City Frequenc,y Morning Farm Noon Farm soybean are the most likely management solu- something like this up with various brands of WABJ Adrian 1490 5:45 am 12:15 pm tions, although research is being done on resistant varieties. If their variety performs WATZ Alpena 1450 5:30 am 12:15 pm potash levels, as well as application ofTemik- well, more than likely that farmer is going to WPZA Ann Arbor 1050 6:15 am 12:05 pm 15G in-furrow at planting time. be back next year buying seed." "Ideally, we want growers on a rotation Further research is needed to determine WLEW Bad Axe 1340 6:30 am 12:50 pm where they're growing a susceptible variety the impact of 30 inch rows versus drilled WHFB Benton Harbor 1060 * 12:30 pm of soybean, the next time growing a non-host beans, and no-till versus conventional tilled WKYO Caro 1360 6:15 am 12:45 pm crop, then growing a resistant variety of soybeans, Warner said. ''I'd guess that no-till WTVB Coldwater 1590 5:45 am *** soybean," explained Warner. would tend to reduce the speed in which WDOW Dowagiac 1440 6:15 am 12:15 pm In severe infestations, Warner will even soybean cysts nematodes would be spread WACY Fenton 1160 6:15 am 12:15 pm recommend growers rotate a field out of across a field, but we don't have any research WGHN Grand Haven 1370/92.1 5:45 am 12:15 pm soybeans for as long as three years. "We use data at this point to verify that line of thought," WPLB Greenville 1380 6:15 am 12:45 pm a threshold of one cyst per soil sample, and Warner concluded. WBCH Hastings 1220 6:15 am 12:30 pm Recommended crop rotation sequences for reducing and maintaining soybean cyst nematode WCSR Hillsdale 1340 6:45 am 12:45 pm populations below damage levels. The system is based on risk levels identified from previous WHTC Holland 1450 12:15 pm nematode samples. WKZO Kalamazoo 590 ** 12:15 pm WJIM Lansing 1250 5:05 am 12:15 pm Soybean Cyst Nematode Risk Level WWGZ Lapeer 1530 * 12:15 pm Year of RotatIon 46 (HIgh-&nmI) o (None) 1 (LoW) 2-3 (lledbn) WNBY Newberry 92.5 12:15 pm S~ Non-host Non-host Non-host WOAP Owosso 1080 6:15 am 12:30 pm 1st soybeans WHAK Rogers City 960 7:10 am 12:15 pm Non-host Resistant soybean Non-host Non-host WSJ St. Johns 1580 6:15 am 12:15 pm 2nd variety WMLM St. Louis 1540 6:06 am 12:20 pm Susceptable Non-host Resistant soybean Non-host WSGW Saginaw 790 5:55 am 12:15 pm 3rd variety soybeans WMIC Sandusky 660 6:15 am 12:45 pm Susceptable Resistant soybean WKZC Scottville 95.9 5:45 am 12:30 pm Non-host Non-host variety 4th soybean variety WCSY South Haven 940 12:15 pm Susceptable Non-host Susceptable Non-host WKJC Tawas City 104.7 12:45 pm 5th soybeans soybean variety WLKM Three Rivers 1510/95.9 6:15 am 12:15 pm Non-host Resistant soybean Non-host Non-host WTCM Traverse City 580 5:55 am 12:40 pm 6th variety • Station signs on at different times during the year. Morning farm times change with Susceptable Non-host Non-host Non-host sign-on times. 7th soybeans •• Station airs various farm reports between 5:50 and 6:20 pm. Susceptable Resistant or Resistant or u* Station airs various farm reports between 12:00 and 1:00 pm. 8th Non-host soybean variety susceptable variety susceptable variety Some stations carry additional market reports throughout the market day. 1 Risk level {O-5)based on results 01 nematode sampling. Michigan Farm News 1993 Ag Expo Extra! _ ~~ August 30, 1993 - Michigan Farm News Classifieds - _riltlill -:::::::.::::::::::::::::: RB DRYER WAGON. 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For a free catalog, call 1-800-851-3382. ~----------~~~----~--------~ HEARTlANOIFELD IS A MEMBER BENEffi PROVIDER FOR FARMIlUREAU MEMBERS Michigan Farm News August 30, 1993 NAFTA: What the Opponents Aren't Telling You! continued ...from page 1 What they're not telling you: of some farm products (potatoes and dry The high tariffs above the guaranteed Wage rates are a relatively small factor in beans, for example) by introducing high quota are part of the import safeguard sys- period for products that are sensitive to the production and distribution of most tariffs where no tariffs currently exist." tem to be used by both countries during the import competition. agricultural products. Other factors taken What they're not telling you: 10 to 15 year transition to free trade. The Ten to 15 years should help many together are much more important: labor NAFf A will establish a minimum quantity U.S. will have the same system for a num- producers adjust to the new competition. productivity, resource availability, in- that Mexico will have to allo.w in duty-free ber of products (e.g., peanuts, some winter We also believe that farmers should be frastructure, cost of capital, etc. in the future. This level will gradually in- vegetables and citrus). If we expect to use eligible for any trade adjustment assistance In all of these other respects, the U.S. crease until there are no longer any restric- this safeguard mechanism for sensitive program that the administration intends to agricultural sector has a decided advantage. tions on imports of U.S.products. products, then we have to allow Mexico to implement. Mexico will have an advantage in some The new system is less restrictive (even use it, too. Indeed, the fact that Mexico products, but not in most (which is clearly with some high initial tariffs in a few cases) identified potatoes and dry beans as two NAFTA opponents claim: demonstrated in virtually every study con- and guarantees a minimum level of imports commodities that should use the safeguard "Maybe NAFT A will result in a net in- ducted on this question). from the U.S. -- a guarantee that never system is further proof that Mexico cannot crease in U.S. jobs, but they'll be mainly existed before and which will expand in the compete with U.S. producers and that U.S. low paying. Or the jobs created by NAFT A NAFTA opponents claim: years to come. In addition, the new system exports will grow in the future. in the U.S. will be in high paying sectors, "Mexico allows the use of many pesticides still allows the Mexican government to im- in which case, Americans in low paying banned in the U.S., including DOT. Mexico port more than the minimum level estab- NAFTA opponents claim: jobs will be disadvantaged." also allows crops to be sprayed with con- lished each year to satisfy domestic "Support for NAFT A means many U.S. What they're not telling you: taminated water. NAFf A will result in a demand, just as it always has. farmers will be forced out of business." Opponents of NAFT A have used both ar- less safe food supply in the U.S." Opponents have tried to make the min- What they're not telling you: guments to criticize the agreement. Studies What they're not telling you: imum guarantee appear to be a maximum Farm Bureau supports NAFT A because it have shown that NAFT A will increase the NAFfA makes no changes in U.S. food limit. They seem to be arguing that they will help keep farmers in business. Unless number of jobs in the U.S. and that jobs safety inspection requirements (NAFf A would rather have the current import we develop new markets abroad, U.S. created by exports tend to be higher paying only phases out trade barriers, not border regime, under which the Mexican govern- agriculture will face downsizing at a rapid inspections). It is extremely unfortunate ment can choose to import nothing at all (or, pace and more farmers will be forced off that DOT has been raised as a reason for perhaps worse, to buy it all from other their farms. The NAFf A was drafted to Continued ...see opposing NAFfA. DOT on food is banned countries). This makes no sense. maximize the length of the transition in Mexico, just as it is here. NAFTA page 16 Apparently, NAFfA opponents have begun a "DOT scare" because, according to the Governmental Accounting Office (GAD), the Mexican government is still authorized to use DOT in southern Mexico to control mosquitos that carry malaria. GAD found no reason for concern that this ~RRIED usage would affect food for export to the U.S. And, to repeat, U.S. import inspections for all illegal residues, such as DOT, will FACES not be impeded by NAFf A. Opponents are saying incorrectly that Mexico allows 58 pesticides banned in the U.S. In fact, the GAD has found that there are 58 pesticides OF OUR where Mexico and the U.S. have set dif- ferent tolerances or where there is a tolerance for a given crop in one country but not the other. INSUREDS. GAD found only six pesticides where Mexico has established a tolerance for Worry ? Not them. products exported to the U.S. where the U.S. has no tolerance. In these cases, And why should you when you can protect your life savings with a Mexican products must still meet U.S. tolerances upon inspection at the border. Long Term Care Plan from AMEX Life Assurance Company? NAFTA will encourage Mexico to strengthen enforcement of its pesticide laws Regrettably, two in five older adults will require nursing home care.1 (which, according to the GAD, are already With costs averaging about $30,000 per year2 it's easy to see just how very similar to ours). devastating this can be. The quality of Mexico's water supply no doubt needs to be improved. Generally, But it doesn't have to be this way. more developed countries are better able to afford water purification systems. Improv- With AMEX Life you can plan on peace of mind. AMEX Life, an ing Mexico's economy through NAFfA will advance this effort. Crops produced in American Express company, has over 16 years experience in long-term Mexico for export to the U.S. market must care insurance and is rated A+ (Superior) by A.M. Best.3 comply with U.S. residue standards and, therefore, cannot be sprayed with con- Don't be worried by the costs of long-term care. Call or write today for taminated water that would taint the more information from your local Farm Bureau Insurance Agent on the product. Farm Bureau would oppose any weakening of U.S. food safety laws. On the options available to you. contrary, we believe that NAFT A will result Representing: in safer food both here and in Mexico. NAFTA opponents claim: AMEX Life Assurance Company "NAFTA will drive down U.S. farm in- a subSidiary of • TRAVEL come." RELATED @ SEIMCES What they're not telling you: Overall farm income will increase under I. Consumer's Guide to Long-Term Care Insurance, HIAA 1989 NAFT A. Studies vary on the degree of in- 2. U.S. News & World Report, Aug. 13, 1990 come growth and in which commodities, 3. Independenr analysts of the insurance industry who base their analysis on financial strength and operating performance. but no major study has proposed that U.S. farm income will be reduced by NAFT A. TO RECEIVE ADOmONAL INFORMAnON AND AN AIIEX BROCHURE/APPUCAnON - ALL OUT THE COUPON BELOW Farm income in some selected commodities OR CALL DIRECT 1-800-292-2680, EXT. - 3236.. may be affected adversely, but most studies show that effect to be relatively small. Some Please Print opponents still refer to a Dallas Federal .... ItI.CH.GAN Reserve Report to make this claim. This .... FARItI BUREAU Name report looked at hypothetical trade agree- Please mail to: Michigan Farm Bureau Addres ment in which the U.S. gave up all price Membership Services support programs. It had nothing to do with P.O. Box 30960 Ci State ZIP the NAFTA. Lansing, MI 48909 Ph n NAFTA opponents claim: "NAFT A will actually reduce U.S. expo Coun ." Michigan Farm News 1m "NAFTA: What the Opponents Aren't Telling You!" continued ...from page 15 •• Erickson August August 30, 1993 government ministry charged with en- In addition, the side agreement on the MFB Volunteer of and have better benefits than those compet- ing with imports. vironmental policy formulation and enfor- cement -- essentially the Mexican EPA. environment will provide for an enforce- ment mechanism. the Month The most important export sectors The environmental hurdles that com- In a proposal by a number of prominent (aircraft, construction machinery, com- panies wanting to locate in Mexico will environmental groups, the side agreement puters, engines~ scientific instruments, rail- have to jump will likely be no lower than would result in the creation of a North road equipment and chemicals) pay] 2 per- those in the United States. American Commission on the Environ- cent above the national average. By com- Opponents say it does not matter if ment (NACE). One of its main functions parison, the most important U.S. import Mexico has strong environmental laws and will be to monitor the performance of sectors pay ]6 percent below the national regulations because they are not enforced. countries in complying with environmental average wage, the only exceptions being The track record of Mexican President laws and regulations. steel and autos. The creation of more higher Salinas suggests just the opposite. When complaints of abuse or non-com- paying jobs in the U.S. is an advantage Since Salinas took office, Mexico's en- pliance are made, NACE would investigate offered by NAFT A, not a reason to oppose vironmental budget has increased 700 per- and suggest a course of action. A successful it. cent. The number of environmental inspec- NAFT A will help Mexico continue to make tors has increased to more than 300. There progress in the area of environmentally NAFTA opponents claim: have been suspensions of operating licen- sound resource management. "U.S. firms will move their operations to ses and closures of 1,926 facilities for non- A Princeton University study indicates Mexico to avoid strict U.S. environmental compliance with environmental regula- that pollution levels began to decrease in 42 laws." tions. countries when per capita GDP increased What they're not telling you: More than 100 facilities have been from $4,000 to $5,000. If NAFT A could Mexico's General Law of Ecological Equi- closed permanently in an attempt to curb boost Mexico's current GDP of about librium and Environmental Protection pollution in Mexico City. These are not the $3,700, it undoubtedly will provide access enacted in ]988 is roughly the same as U.S. actions of a country unconcerned with en- to greater resources for environmental Wayne Erickson of Whittemore in laws and regulations. forcement of environmental rules and protection purposes. Ogemaw County has been selected as In 1992, the Mexican Congress created regulations. MFB's August Volunteer of the Month the Secretariat of Social Development, the for his efforts in recruiting students for Michigan Farm Bureau's Young People's Citizenship Seminar (YPCS). Wayne, who is 77 years old, currently farms 280 acres growing oats, corn, wheat and hay, in addition to milking 25 TAKE'THE"SITE OUT OF DENTAL CARE COSTS cows and raising 35 head of replace- ment heifers. Wayne still finds time to serve on a number of Farm Bureau committees, and recently retired from the Ogemaw County Farm Bureau Board of Directors after serving a total of 24 years. He also serves on the Board of Review and is active in his church and a number of civic groups. School Finance and Property Tax Reform- Legislators Continue Search for $6.3 Billion in New Revenue With the Legislature on a two-week sum- mer recess, the discussion on school finance and property tax reform continues. Leadership and members of both the Senate and House have been meeting to develop concepts and details to improve Member dental insurance is the affordable way to assure that you and your family education quality and funding equity. receive the dental care services you require - even'when sudden and costly needs arise. "Most of the discussion at this time is focusing on the question of developing a ., Measure the rates against your annual dental care bills and consider the advantage! high quality, affordable, efficient and ef- Single $18 per month • Couple $32 per mo'nth fective K-] 2 structure," said MFB Legis- Member/C.hild $32 per month • Family $41 per month lative Counsel Ron Nelson. "A variety of ideas are being discussed and blended to _ .. MICHICAN . satisfy a variety of needs and goals." .... ~ARM BUREAU The funding of the new educational pro- TO RECEIVE ADDITIONAL INFORMATION AND A BROCHURE/APPLICATION, PLEASE FILL OUT THE COUPON BELOW gram will be influenced by the cost, ac- OR CALL DIRECT 1-800-292-2680 EXT- 3236. cording to Nelson. The funding alterna- tives are limited but include: diverting Please Print funding from other programs, reducing or eliminating tax credits and deductions, ex- Please mail to: Michigan Farm Bureau Name panding the current tax base and increas- Membership Services ing the tax rate. P.O. Box 30960 Address Lansing, MI 48909 "Decisions must be made soon," Nelson Citv State ZIP said. "The goal of many legislators is to develop a solution during this calendar Phone year. Delays will only make the issue more difficult to solve. The discussion has County begun and alternatives are being evaluated. "