Michigan Farm News Vol. 70, No. 1 At PressTime... Group Risk Plan Crop Insurance - Is It For You? Schuette to Resign MDA Post Soybean and corn acres in select counties will be eligible for GRP in 1994. C^orn and soybean farmers in 37 Michigan Bill Schuette, director of the counties have another crop insurance Michigan Department of product to consider in 1994, that could cost Agriculture for the past three years, only 50 to 60 percent of conventional Multi announced on Jan. 6, that he will Peril Crop Insurance (MPCI), and save a tremendous amount of paper work in the be resigning his Cabinet-level post process, while providing catastrophic loss as of Feb. 25. He plans to return to protection. the Midland-based law firm of Currie & Kendall, P.C. where he The Group Risk Plan, more commonly worked in the early 1980s. known as GRP, grew out of a recommenda- tion of the Commission for the Improve- In making his announcement, ment of Crop Insurance, commissioned by Schuette thanked Gov. Engler, the Congress in 1988. MFB President Jack Laurie served on the commission. Michigan Ag Commission, farm groups and farmers for their GRP is an old crop insurance concept, how- support during his tenure. ever, this is the first time it will be sold on a widespread basis in the U.S. The product As director, Schuette helped to is intended to complement existing in- secure funding for the $70 million surance products, according to MSU Ag Animal Livestock Initiative at Economist Roy Black. Michigan State University, and implemented a series of environ- "Farmers basically have three different crop insurance products to choose from, mental policy initiatives, including that most agents in Michigan can sell," ex- yields. GRP only pays when the yield of the trigger level then is 36 bushels. Anytime the Michigan Groundwater and plained Black. "We have the Hail and Fire county drops below the expected county the county yield was below 36 bushels, the Freshwater Protection Act. products, as they've always been sold; the yield set by the National Agricultural farmer would receive a payment. multi-peril product with indemnities based Statistics Service (NASS). Payment is on shortfalls in the individual farmer's based on the percentage of decline below Farmers can also select any protection level Elsewhere In This Issue... yields; and the new multi-peril product the expected county yield, the coverage per acre up to a maximum that is estab- known as GRP, with indemnities based on level the farmer selected, and the amount lished as 150 percent of the expected coun- Weather Outlook: shortfalls in county yield. If your yield his- Expect colder than normal and of protection purchased. ty yield times the indemnity price. This tory has trended well with the expected feature should attract farmers with yields heavy snowfall page 4 county yield, regardless of whether it's Farmers can select their own coverage higher than the county average according higher or lower, then GRP may be for you." level of 90,85,80, 75,70, or 65 percent of to Black. Market Outlook: the expected county yield. For example, Base your near-term market GRP is based on the premise that when an suppose the expected county yield for Continued on page 12 ...see decisions on Jan. 12 Quarterly entire county's crop yield is low, most soybeans is 40 bushels and a farmer Stocks Report page 6 farmers in that county will also have low chooses a coverage level of 90 percent. The "GRP-Is It For You?" Group Risk Plan Learn more about GRP and whether you should use this new Ag Jury Still Out on School Finance Reform After record breaking debate lasting until , because there are other criteria in current proposal, and an increase in sales tax, ad- insurance alternative page 7 noon on Dec. 24, and several hundred law that further limit that homestead to just justments to the income tax, he questions BST Management Aspects: amendments to nearly 20 different related the residence where the individual lives and the change to net tax liability. bills, the Legislature put the fate of school the five acres on which that residence is ^ Learn more hands-on manage- finance reform back in the laps of Michigan The following chart summarizes the current located." ment tips as you consider BST voters and state agencies to determine just law, the statutory plan, which would be the use on your farm page 8 what it all means, according to MFB Legis- In general, Nelson expects that agriculture basis for funding K-12 education if the bal- lative Counsel Ron Nelson. will see a lower property tax rate, but per- lot proposal fails, and finally a brief sum- Restricted Use Pesticide Rules: haps not to the extent originally anticipated. mary of the ballot proposal if approved by Confused abour recertification "The effort now is to look at the new body However, with the approval of the ballot voters on March 15. procedures? page 11 of law, piece it all together with existing law and then analyze how that will affect TAX SUMMARY agriculture," Nelson explained. "It's impor- (Revenue in Millions) tant to understand that there is a relationship between the new bills and current law, Statutory Plan Ballot Plan which means we need to have the Michigan Current Law Rate Revenue Rate Revenue Department of Treasury's interpretation." Property Taxes Homes 36-miil average *12 mills $1,198 *6 mills $ 599 Non-homes 36-mill average #24 mills $1,852 #24 mills $1,852 Nelson doesn't expect a final analysis to be Voc ed, ISD taxes 3 mills 3 mills $ 510 3 mills $ 503 available until February due to the com- Property Transfer 0% 1% $ 213 2% $ 425 plexity of the issue and the sheer number of bills sent to the governor. Income Tax 4.6% 6.0% $1,727 4.4% $- 247 Pers. Exemption $2,100 $3,000 $- 352 $2,100 $ 0 Renter Credit 17% of rent 20% of rent $- 40 20% of rent $- 40 Of major interest and concern to agriculture is the "homestead" definition. There's still Sales/Use Tax 4.0% 4.0% $ 0 6.0% $1,830 not a definitive answer, and the final out- Business Tax 2.35% 2.75% $ 335 2.35% $ 0 come could have a big impact on net tax savings for farmers, according to Nelson. Cigarette Tax & 25 cents/pack 40 cents & $ 127 75 cents & $ 357 Other Tobacco 16% 16% "Under the bill, as passed, homesteads may include all unoccupied property classified Interstate Phone N.A. 4% $ 40 6% $ 60 as agricultural, which is adjacent and con- tiguous to the home of the owner, unless 'Property tax on homes includes 6 mills statewide and 0 local mills under a ballot plan and 12 mills that land is leased or rented by the owner to under the statutory plan. ^Property tax on non-homestead property includes 6 mills statewide and 18 locally under the ballot another person," Nelson said. "I say 'may' plan, or 12 mills at the state level and 12 at the local level under the statutory plan. Michigan Farm News Classifieds - Page 14 Michigan Farm News rs January 15,1994 U In Brief... Machinery Prices Up in 1994? 1994 Farm Economy - Net Cash Income Expected UpAn Ohio State University agricultural economist says the need to replace aging, worn out The farm sector entering 1994 is more cost-efficient, better capitalized and positioned for equipment will help drive farm equipment prices above the national inflation rate in 1994. improved potential profitability. The farm economy will experience only a moderate rate of growth, despite a relatively high level of net cash income, according to USDA. Economist Allan Lines is optimistic about farm purchases, partly because inflation is expected to stay under control at a national rate of 3 percent or less. He said farm machinery Both assets and debt are expected to increase at annual rates of 2 to 3 percent throughout probably will see the greatest price increases, with the rate depending on the kind of the remainder of the 1990s. The value of farm business assets at the end of 1993 stood at equipment. $878 billion. However, the real value of farm assets is at virtually the same level as in 1962. During this 32-year period, the inflation-adjusted level of farm debt has increased about 15 He predicts tractor prices will rise about 5 percent, while the cost of other machinery will percent. jump by 6 percent to 7 percent. Pickup trucks, he said, will see the biggest increase, between 7 percent and 10 percent. Farm business assets are projected to rise $16 billion during 1994, less than 2 percent, while the general rate of inflation is expected to exceed the growth rate in asset values giving an Midwest Governors Organize Big Push for Ethanol overall decline in 1993 and 1994 in the real value of farm assets. Iowa Governor Terry Branstad is organizing a Midwest governors' lobbying effort to push New Year Brings Giant European Trade Bloc for final acceptance of the 30 percent ethanol mandate in the oxygenated fuels. According to an Associated Press story, Branstad is organizing the campaign to coincide with a Jan. The new year will usher in a giant new European trading bloc - the European Economic 14 hearing on the proposal in Washington. Area, which links the European Community and the neighboring European Free Trade Association, according to a Reuters story. Branstad and Nebraska Gov. Ben Nelson plan to testify at the hearing. They are seeking the added support of governors from Illinois, South Dakota, North Dakota, Wisconsin, The EEA, the world's biggest trading zone, will extend the EC's single market to five out Indiana and Minnesota. of seven of the EFTA nations - Austria, Finland, Iceland, Norway and Sweden. Although it is expected to bring real economic benefits in an area stretching from the Arctic to the "While there is broad support for the proposal throughout the Midwest, there is still Mediterranean and covering 372 million consumers, it is seen by four of the five EFTA significant opposition. That makes the lobbying push important. We don't want to take any nations as being but a stepping stone to full EC membership. chances," Branstad said. The latest EPA proposal requires 30 percent of the oxygenated fuels to come from renewable energy supplies, such as ethanol. The cities targeted for the Russian Farm Woes Continue 1995 clean air programs represent roughly one-half of the gasoline sold in the United States. Russian farmers lost more than 30 percent of their 1993 harvest due to weather, financial Rotational Survey for Horticulture Survey Coming and infrastructure problems, reports Knight- Ridder. Russia's agricultural ministry reports a harvest of 100 million metric tons compared with 107 million tons the previous year. Meat In January, the first Michigan Department of Agriculture triennial survey of the horticulture production is also expected to fall to 11.9 million metric tons from 12.9 million tons in industry will begin. The project will encompass Michigan Christmas tree growers, and 1992. Lower meat output is expected to reduce some of the demand for grains. nursery stock producers and retailers. This is the third phase of the Michigan Rotational Survey cycle, which surveyed fruit in 1991 and vegetables in 1992. Analysts report Russia's winter grain crops are 4 million hectares smaller than in 1992. Russian farmers purchased 50 percent less fertilizer in the three planting months ending in Data collected from respondents by the Michigan Agricultural Statistics Service (MASS) November. The country's farmers were also short 400,000 tons of seed, roughly 5 percent will be summarized to produce estimates at the state and district level. A bulletin will be of their total needs. published containing statistics documenting the size and breadth of this segment of agriculture in the Great Lakes State. Every report returned to MASS is kept strictly The United States will not decide what action to take on future aid to Russia until after confidential, and as a federal statistics agency, MASS reports are exempt from the Freedom President Clinton returns from his scheduled visit to Moscow in mid-January. In preparation of Information Act. for the Russian visit, the U.S. is exploring several aid possibilities including efforts to press the International Monetary Fund to relax its monetary policy standards to aid in the release Producers receiving this questionnaire are encouraged to complete and return it using the of the remaining $1.5 billion from an earlier aid package; more help from the Group of postage paid envelope. Those not responding by mail will be contacted by telephone or Seven industrialized nations and more direct U.S. food aid. personal enumeration. Canada May End St. Lawrence Seaway Fees December Farm Prices Up 5.1 Percent from 1992 Canada is considering a U.S. proposal calling for an end to tolls on the seaway which The index of prices received by U.S. farmers for their products in December was unchanged amount to as much as $45,000 per shipload. Shipments on the Seaway have fallen by 40 from November, but rose 5.1 percent from a year earlier, USDA said Dec. 30. Price increase percent since reaching a peak in 1979, reports the Chicago Tribune. for tomatoes, corn, wheat, and strawberries were offset by declines for oranges, hogs, cattle and lemons. The year-to-year increase was caused by higher prices for corn, soybeans, milk The U.S. abolished all tolls on its two locks in 1986, but Canada maintains the tolls on 13 and sorghum, which more than offset declines for cattle, lettuce, apples and hogs. locks under a 1954 law. As a result of the 40 year old law, any negotiated end to the tolls must be approved by the Canadian Parliament. Hearings on the proposed toll changes are U.S. Soybean Prices Ride Argentina's Problems scheduled for February. Soybean futures rose above the $7 per bushel figure on news that Argentine farmers are Removal of the tolls could generate greater Seaway grain shipments and lower shipping facing problems caused by excessive moisture. About 20 percent of the Argentine soybean costs. The bulk of U.S. export grain now moves down the Mississippi River to ocean-going crop remains unplanted, reports the Wall Street Journal. ships in New Orleans. The current negotiations call for a freeze on tolls for 1994, followed by a general phaseout of all fees. Much of that country's growing region received 3-5 inches of rain on already saturated fields. The wet fields are delaying planting and hurting germination on recently planted Elton Smith Receives Honorary MSU Degree fields. The markets are responding to the South American problems, along with the poor U.S. harvest. Third Annual MASA Meeting Jan. 29 in Mt. Pleasant The Michigan Agricultural Stewardship Association will be holding its third annual meeting Jan. 29, at the Mt Pleasant Holiday Inn, starting at 9 a.m. and concluding by 2 p.m. Participants can attend one of several breakout sessions during the morning portion of the program. Topics include: Organic Truck farm Vegetables; Dairy Manure Composting; Chestnuts as an Alternative Orchard Crop; Rotational Dairy Grazing; and Reduced Til- lage/No-till Sugar Beets. The afternoon portion of the program will feature keynote speaker Fred Kirschenmann, a manager of a 3,100 acre grain and cattle farm in Medina, North Dakota. Kirschenmann will share his experiences on sustainable agriculture and the impact on the future of agriculture. For more program information and/or registration, contact MASA President Jerry Wirbel at (517) 689-3857. 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 Bureau, 7373 West Saginaw Highway, Lansing, Ml 48917. Member subscription price of $1.50 included in annual dues of Michigan Farm Bureau regular members. Additional subscription fees required for mailing Michigan Farm News to non-members and outside the continental U.S.A. Second-Class Postage paid at Lansing, Ml and additional mailing offices. Letters to the editor and statewide news articles should be sent to: Editor, Michigan Farm News, P.O. Box 30960, Lansing, Ml 48909-8460. POSTMASTER: Send address changes to: Michigan Farm News, P.O. Box 30960, Lansing, Ml 48909-8460. Elton R. Smith (second from right), who served as MFB president for 22 years, received an honorary degree from Michigan State University during MSU's Decem- Editorial: Dennis Rudat, Editor and Business Manager. Staff Contributors: Mike Rogers; Connie Lawson; Donna Wilber; Henry Huisjen. ber commencement ceremonies. Fred Poston, Dean of MSU's College of Agricul- ture and Natural Resources, called Smith "a giant in Michigan agriculture." Officers: President, Jack Laurie, Cass City; Vice President, Tom Guthrie, Delton; Administrative Director, Chuck Burkett; Treasurer and Chief Financial Officer, Tom Parker; Secretary, William S. Wilkinson. Directors: District 1 Jim Miller, Coloma; District 2, Blaine VanSickle, Marshall; District 3, Douglas Darling, Maybee; District 4 Tom "I can t think of anyone more deserving of an honorary degree from MSU than Elton Guthrie, Delton; District 5, Mark Smuts, Charlotte; District 6, Wayne Wood, Marlette; District 7, Larry Snider, Hart- Smith, based on his leadership and accomplishments across the span of 40 years District 8, Richard Leach, Saginaw; District 9, Joshua Wunsch, Traverse City; District 10, Margaret Kartes West in agriculture and natural resources in Michigan," Poston said. "He has almost Branch; District 11, Robert Wahmhoff, Baraga. At-Large: Jack Laurie, Cass City; Faye Adam, Snover Jan single-handedly put our state on the map with one of the most productive agricul- Vosburg, Climax; Judy Emmons, Sheridan. Promotion and Education, Paul Swartzendruber, Pigeon; Young Farmers, Andy Hagenow, Rockford. tural programs in the nation. Even in retirement, Elton continues to exert a great influence on Michigan agriculture." Michigan Farm News January 15,1994 Michigan's Hog Numbers Down Six Percent Michi gan 's hog and pig inventory on Dec. 1 decreased 6 percent from a year ago, head from the previous year. Average pigs per litter was 8.0 pigs, up from 7.9 pigs per Michigan Tops in Dry Beans in 1993 Michigan once again leads the nation in dry bean production, knocking North Dakota back into second place. Michigan growers enjoyed good growing conditions this year, with an E3 according to the Michigan Agricultural litter last fall. Fourth quarter pig crop was increase in production over 1992's crop. The crop is estimated to total 6,080,000 hundred- Statistics Service. Total inventory, es- down 2 percent from the previous year, weight (cwt.), up 42 percent from 1992's disappointing production of 4,290,000 cwt. timated at 1,200,000 head, was 80,000 less totaling448,000 pigs. Producers' farrowing than last December. intentions for the next two quarters are Yields for all dry beans averaged 1,600 pounds per acre, up 300 pounds from 1992. Planted 47,000 for the December-February 1994 acreage of all dry beans was estimated at 390,000 acres, up 11 percent from last year. Navy Market hogs make up 87 percent of period and 76,000 for the March-May 1994 bean plantings accounted for 250,000 acres, while all other classes totaled 140,000 acres. Michigan's hog and pig inventory while period. breeding stock comprises 13 percent of the Harvested acreage of all dry beans was estimated at 380,000 acres, up 15 percent from 1992. state total. Market hogs were down 6 per- Nationally, the inventory for all hogs and Navy beans and all other bean harvested areas were 245,000 and 135,000, respectively. cent, totaling 1,040,000 head. The under 60 pigs on hand Dec. 1 was estimated at 56.8 Navy bean production totaled 3.9 million cwt., up 31 percent from last year. Production of pound weight group totaled 340,000 head, million head, 2 percent below Dec. 1992 all other dry beans totaled 2.18 million cwt., up 65 percent from 1992. down 10,000 head from a year earlier. and 4 percent below Sept. 1, 1993. The breeding hog inventory, at 7.03 million, Nationally, dry bean production is estimated at 21.7 million cwt., down 4 percent from The 60-119 pound weight group at 240,000 decreased 1 percent from Dec. 1,1992, and 1992. This is the smallest dry bean crop since 1988. Production is down sharply in North head, was 10,000 less than a year ago, while Sept. 1,1993. Central and Plains States. Area for harvest is up 4 percent to 1.59 million acres, while yields the 120-179 pound weight group was es- dropped 112 pounds from last year to 1,366 pounds per acre. timated at 240,000, down 25,000 head from The market hog inventory, at 49.8 million last year. Hogs weighing 180 or more pounds, totaled 220,000 head, down 20,000 head, was 2 percent below a year ago and 4 percent below Sept. 1,1993. A total of 2.85 Farm Women's Symposium Feb. 16- 18 from last year. The Michigan breeding million sows farrowed during the Septem- A n exciting and challenging program is Dawn Messer, marketing and sales stock at 160,000 head, is down 15,000 head ber-November 1992 period. The Septem- planned for the Third Annual Farm manager for MACMA Apple Division and from the previous year. ber-November crop totaled 22.9 million Women's Symposium, Feb. 16-18,1994,at one of the symposium's organizers, said head, 5 percent less than 1992 and 2 percent the Sheraton Inn, Lansing, Mich. Women that the past two year's gatherings have Producers farrowed 56,000 sows during the less than the same period in 1991. associated with agriculture from around the "created much enthusiasm among the par- September-November quarter, down 2,000 state are expected to convene for the three ticipants - they find it a great educational day seminar. benefit and there's a distinct camaraderie Michigan ASCS State Committee Reinstates Legume among them. It's truly a rewarding and This year's topics will cover a wide range satisfying experience." Seeding Cost Share Program of interests: long-term estate planning; The Michigan Agricultural Stabilization and Conservation Service (ASCS) State Com- farm labor and financial forms; computer Judy LaCross, a participant both years and mittee has voted to reinstate cost-share assistance to farmers planting various legumes on software and hardware; use of farm chemi- a fruit grower from Leelanau County, says fields prone to erosion, in response to comments received from farmers across the state, cals; balancing life's demands; stress "I've come away each time refreshed and according to Vern Kretzschmer, chair of the State Committee. management; interaction with our legis- renewed. I've gained insights and techni- "This was an extremely popular practice. When it was suspended last year, farmers wrote lators; a trip to the capitol; and an all-day ques that are applicable in both my personal to our offices by the dozens complaining about the decision, and the new State Committee Dale Carnegie Workshop (an extension of life and workday experiences." believed we should help farmers reduce erosion and improve ground water quality by one area from last year's program - by reinstating this practice," said Kretzschmer. "The state committee made some changes in popular request). The planning committee is made up of the practice to ensure that it would address the objective of reducing erosion. Fields adjacent women in agriculture from throughout the to streams or other bodies of water, and those designated as highly erodible will qualify for Highlights will include a welcome speech state and MSU Extension advisors. cost share planting of alfalfa, birdsfoot trefoil and other permanent seedings under this by Dr. Gail Imig, director of MSU Exten- practice." sion; lunch with House Representative For more information, contact Rebecca The final decision on the implementation of the practice in most counties will be Sandy Hill; and a banquet speech by State Finneran at (616) 774-3282 or Dawn made by county ASCS committees, but most counties should have the practice avail- Representative Debbie Stabenow on Messer at (800) 292-2653. able to farmers in the spring of 1994. "Women's Changing Role in Politics." MFB's AgriPAC - Working for Agriculture's Future Despite the recent bad press and negative making their recommendation to the MFB public perception of PACs or Political Ac- AgriPAC Committee. FARM BUREAU ACCOUNT BILLING STATEMENT tion Committees, they're a political reality For that agriculture must continually be aware According to Adam, that process has made For Billing Questions C«ll 1 -800-535-2335 of and involved in, according to MFB the "Friend of Agriculture" endorsement F a r m B u r e a u Account N u m b e r S t a t a m a n t Data O u a Data Paymant Due Total Amount Dua AgriPAC Chairperson Faye Adam. highly sought after by candidates. "The : Including AGRIPAC 12/19/1993 01/09/1994 $45 00 $46 00 most important part of our PAC is the fact Adam, a partner in Pleasant View Farms, that it is truly a grass roots process that sets near Snover in Sanilac County, has chaired it aside from other PACs," Adam ex- ACCOUNT SUMMARY the MFB AgriPAC Committee for over plained. "It's a well-respected PAC and Previous Bafanci $ 0.00 three years now. She says that financial candidates come back to us time and time Plus Transactions $ 45.00 Lass Payments $ 0.00 contributions, and volunteer campaign ef- again seeking our endorsement." forts on behalf of AgriPAC's endorsed New Balance $ 45.00 "Friends of Agriculture," is more important MFB's AgriPAC is funded primarily now than ever, with the upcoming elec- through voluntary contributions from TRANSACTION DETAIL tions. members when they pay their membership Policy / Member Transactions Effective Date Transaction Amount Paymant Dua renewal notices, by adding $1 to their dues Number "The 1994 elections are probably one of the payment. Those contributions funded near- AUS039367711 AMS0393677I1 F . B . MEMBERSHIP - GENESEE AGRIPAC $ 1 . 0 0 VOLUNTARY DONATION 01/07/1994 % 45.00 $ 45.00 most important opportunities for Farm ly $72,000 in donations to endorsed can- Bureau, through our AgriPAC system, to didates in 1992. While substantial and ap- be effective in electing qualified candidates preciated, Adam said that the leading to represent agriculture," Adam said. Michigan-based association contributor, "There will be a gubernatorial race and distributed $264,565 in those same elec- intense competition for an open U.S. tions, making it critical that MFB members * * * Any transaction processed on your account after ia'19/1993 will appear on your next statement. * * * Senate seat, not to mention elections for continue to support AgriPAC. THE FARM BUREAU MEMBERSHIP DUES INCLUDED IN THIS BILLING ARE NOT AN INSURANCE PREMIUM. THESE DUES ARE UTILIZED FOR THE BETTERMENT OF THE CONDITIONS OF MICHIGAN AGRICULTURE. MSU Board of Trustees, U.S. and state representatives and state senate seats." "We can no longer sit back and let things If past AgriPAC endorsements are any in- happen," Adam said. "If we're going to address the agricultural issues of today, we tf Retain u p p e r portion for your records Please return this portion wtth y o u r pay ...,4 dication, this year's endorsed candidates need qualified people representing us in Farm B u r e a u Account N u m b e r D u a Data should be very successful. In the 1992 elec- Lansing and Washington, D.C., that under- Account Balance Payment Dua ; Total Amount Dua including AORIPAC tions, 75 percent of the candidates desig- stand these issues. I think AgriPAC is cer- $45 00 $45 00 $4 6 QQ nated as "Friends of Agriculture" were tainly a way that we have of surfacing, elected. In 1990, nearly 90 percent of the supporting and electing those qualified Indicate Name/Address Change on Reverse Side Make Check Payable To: candidates endorsed by the AgriPAC com- candidates. It's been proven over and over F A R M BUREAU mittee were successful in their bid for just how effective this process can be." public office. P l e a s e i n c l u d e t h e Account N u m b e r on y o u r check or m o n e y order Farm Bureau members interested in MFB's AgriPAC was formed in 1977 to donating to the MFB AgriPAC can do so influence the nomination and election of by donating an additional dollar on their MFB AGRIPAC CONTRIBUTION qualified candidates who have membership dues notice (see sample NAME: PHONE: demonstrated strong support for agricul- notice in red on this page) or by simply ture, as evidenced by their past voting filling out the coupon below and submit- ADDRESS:. records on key agricultural issues. County ting it along with their donation to: MFB Farm Bureau Candidate Evaluation Com- AgriPAC, c/o Al Almy, P.O. Box 30960, CITY: ZIP: mittees review those voting records and, in Lansing, MI 48909-8460. some cases conduct interviews, before OCCUPATION: AMOUNT CONTRIBUTED. (Contribution must be made in the name of an individual. Corporate contributions are Michigan Farm Bureau (517) 323-7000 prohibited. Contributions in excess of $20 must be made by check.) Michigan Farm News January 15, 1994 30-Day Forecast - Continued Cold and Wetter Than Normal Following milder and drier than normal weather for much of snow late in the month brought precipitation to above normal levels November and the first three weeks of December, winter finally and left some areas of extreme northwestern lower Michigan with arrived in Michigan just before Christmas, courtesy of a marked the deepest snow cover in the lower 48 states outside of the western shift in the jet stream which allowed several air masses of arctic mountains by year's end. origin to move through the Great Lakes region. Outlooks for the coming weeks are somewhat contradictory. The Mean temperatures for December generally ranged from one to official National Weather Service (NWS) 30-day outlook for three degrees above normal, due mainly to abnormally mild min- January calls for somewhat of a continuation of recent weather, with imum temperatures early in the month. temperatures expected to remain below normal but for precipitation to increase to above normal levels. The NWS 90-day outlook for Precipitation for the same period was generally much less than January through March is less winter-like, calling for temperatures normal, with the notable exception of the lee shores of lakes and precipitation during the period to average out near normal Michigan and Superior, where several outbreaks of lake-effect across most of the state. Michigan Weather Summary Michigan Weather Summary 12/1/93 Temperature Precipitation 12/1/93 Temperature Precipitation to 12/31/93 Observed Dev. From Actual Normal to 12/31/93 Observed Dev. From Actual Normal Mean Normal (inch.) linch) Mean Normal (Inch.) (Inch) Alpena 26.3 + 2.1 0.44 2.06 lansing 28.5 + 1.4 0.69 2.11 Bad Axe 27.0 + 0.1 0.74 1.93 Marquette 21.7 + 4.0 1.12 2.11 Detroit 31.5 + 3.4 0.78 2.31 Muskegon 29.9 + 1.3 1.06 2.49 Escanaba 25.8 + 2.7 0.50 2.11 Pellston 26.1 + 3.4 3.18 2.15 Flint 28.2 + 0.8 0.51 2.31 Saginaw 28.4 + 1.6 0.50 1.93 Grand Rapids 28.6 + 1.3 1.47 2.71 Sault Ste. Marie 22.8 + 2.6 2.56 2.11 Houghton 22.9 + 2.6 1.99 2.11' South Bend 30.8 + 1.8 1.43 2.71 Houghton lake 27.1 + 3.3 0.65 2.06 Traverse City 29.2 + 2.6 3.64 2.15 t Jackson 28.6 + 0.7 0.82 2.11 Vestaburg 27.1 + 0.3' 0.58 2.11 Normals are based on districtaverages. Jeff Andresen, Ag Meteorologist, MSU Michigan ASCS Personnel to Assist in Flood Ravaged States Michigan and Major Commodity Area Extended Weather Outlook In an effort to speed the delivery of disaster "With farmers in these states harvesting The Michigan contingent will travel to T - Temp. 1/15 1/31 1/15 .3/31 assistance to victims of flooding this past record low production from what they did several county offices in all four target P - Preclp. T P T f spring and summer, almost 60 United States manage to plant, and no production from states, and stay for a period of up to two Michigan B A N N Department of Agriculture county office fields that didn't survive the floods, this weeks beginning Jan. 3, 1994. They will be W. Corn Belt B N A B employees from Michigan will be travell- will be a very cold winter for farmers in joined by 40 ASCS employees from the E. Corn Belt B N B B ing to Iowa, Minnesota, Missouri and Wis- much of the midwest," said Jim Byrum, states of IlJinois, Indiana and Ohio. Wint. Wheat Belt N N B N Spr. Wheat Belt N A A N consin in January to help process thousands Michigan Executive Director of the ASCS. Pac. NW Wheat A N A N of applications for disaster benefits. "The objective of this entire effort is to help Delta B N B N Although the rivers crested about six get disaster benefits paid to farmers as soon Southeast B A B N These applications have been filed by months ago, flooding left homes and build- as possible. We believe that we can at least San Joaquin A N A N farmers with the Agricultural Stabilization ing destroyed, crops devastated, and in help them make a dent in their backlog," and Conservation Service (ASCS) for spe- some cases, up to four feet of sand on top said Byrum .. A-Above Average, B-Below Average, N-Nor- cial disaster benefits approved earlier this of what used to be productive soil. Life may mal, MA-Much Above, MB-Much Below, NP- No Preclp. Source: National Weather OffIce year by Congress after record flooding in never be the same for farmers and others "I am extremely proud of these people who midwestern states. affected by this natural disaster. have made the commitment to leave their homes and family during the first part of the .. "Our ASCS personnel in Michigan have new year to help others in need. That Serving Michigan been asking if they could help in these other demonstrates how deeply these ASCS states for months. They knew there would volunteers believe in what they do, serve Farm Families is be delays in getting payments to farmers, farmers," said Byrum. and they wanted to help speed up the Our Only Business process," said Byrum. County office employees volunteered for these assignments, and will work in offices Since its beginning in 1971, Michigan Farm Radio Network's only objective "Secretary of Agriculture Espy has en- based on their work backlog. has been to serve Michigan's farm families. This dedication to serve agricul- couraged us to be innovative in how we ture is shared by 29 local radio stations in Michigan. Through these sta- approach problems. Asking for volunteers "Some of these offices have more than tions, Michigan Farm Radio Network provides the latest in market analysis, from our ASCS ranks to help these other 2,000 applications pending, and without weather and news to Farm Bureau members daily on the following stations: areas makes sense," Byrum continued. help, they wouldn't see the end of the pile "Our people know these programs and will until spring," concluded Byrum. Station City Frequency Morning Farm Noon Farm be able to 'hit the ground running' to help WABJ Adrian 1490 5:45 am 11:50 am get checks to farmers without further WATZ Alpena 1450 5:30 am 11:30 am delay!" WTKA Ann Arbor 1050 6:05 am 12:05 pm WLEW Bad Axe 1340 6:30 am 12:50 pm WHFB Benton Harbor 12:30 pm WKYO Caro 1360 6:15 am 12:15 pm W1VB Coldwater 1590 5:45 am *** WDOW Dowagiac 1440 6:05 am 12:15 pm WGHN Grand Haven 1370/92.1 5:45 am 12:15 pm WPLB Greenville 1380 6:15 am 11:45am WBCH Hastings 1220 6:15 am 12:30 pm WCSR Hillsdale 1340 6:45 am 12:45 pm WHTC Holland 1450 12:15 pm WKZO Kalamazoo 590 ** 11:30 am WJIM Lansing 1240 5:05 am 11:50 am WWGZ Lapeer 1530 * 12:15 pm WOAP Owosso 1080 6:15 am 12:30 pm WHAK Rogers City 960 12:15 pm WSJ S1. Johns 1580 6:15 am 12:15 pm WMLM S1. Louis 1540 6:05 am 12:20 pm WSGW Saginaw 790 5:55 am 12:20 pm WMIC Sandusky 660 6:15 am 12:45 pm WCSY South Haven 940 12:15 pm WKJC Tawas City 104.7 12:45 pm WLKM Three Rivers 1510/95.9 6:15 am 12:15 pm WTCM Traverse City 580 5:55 am 11:20 am * Statinn signs on at different times during the year. Morning farm times change with the sign-on times. ** Station airs various farm reports between 5:30 and 6:00 am. *** Station airs various farm reports between 12:00 and 1:00 p.m. Some stations carry additional market reports throughout the market day . • • Michigan Farm News Soy Ink More Than Environmentally Friendly -. January 15,1994 by Michelle Strautz More and more printing presses, like this one at the Greenville Daily News where the Michigan Farm News is printed, are using soy ink as an alternative to petroleum based inks. search at Western Michigan University on Thanks to producer-funded research, new The soy inks are not only environmentally friendly, they also produce a better product. soy ink. uses and new markets for soybean products, J including soy ink, have added up to a ... ~ "We've done work with them previously market for more than 10 million acres of relative to the recycling of newspapers that soybeans per year, according to the United were printed with soy-based inks versus Soybean Board (USB). those printed with petroleum-based inks More than $277,000 has been allocated I~ I and then the characteristics of the resulting recycled paper," said Reinholt. toward soy ink research at the national level during the 1993 fiscal year with money "This year, we'll hopefully be doing re- from the national soybean checkoff pro- search with them on a formulation that is gram. According to estimates from the basically 100 percent soy-based and then USB, that $277,000 commitment by the recycling of that paper." producers has meant that additional con- tributions of more than five million dollars Previous research conducted at Western have come from the printing industry and Michigan basically looked at the the USDA. biodegradation of soy ink compared to petroleum-based inks. Reducing the Soybean-oil based printing ink was formu- petroleum content of the ink by substituting lated by the Newspaper Association of soybean-oil benefitted just about every- America in 1985, in response to a shortage thing, including the environment, accord- of imported oil which threatened many in- ing to Jean Rosinski, a graduate research • dustries dependent on petroleum-based chemicals. Soy ink has actually been available on the assistant in the Department of Paper and Printing Science. The soybean checkoff program, which col- commercial market for a little over four lects one-half of one percent of the net sale years, but already, oil from about nine mil- based ink," said Martin. "We believe that it better with the mechanics of the press, with value of a producer's soybeans per year, has lion bushels of soybeans is currently being provides a sharper, brighter color, and we workers having much better control over been instrumental in funding research to used by approximately 75 ink manufac- also feel that we use less ink with the the soy-based ink because it flows better fi nd new uses and new markets for turers and 1,600 printing and publishing soybean application than we did with the than the petroleum-based ink. soybeans, according to Reinholt. companies in the United States. petroleum-based ink. It's just a lot cleaner to use." Bill Bogle, manager of Farm Bureau's in- Reinholt said the program was developed The nation's largest circulation newspaper, house print shop, is currently using 100 by and is managed by soybean growers the LosAngeles Times, uses 100 percent soy Micky Marter, print manager of the Detroit percent soy ink to print county newsletters themselves, with all growers investing at ink, which equals 1,000 bushels of soybeans Free Press Riverfront Plant, said they and other materials. the same rate and all growers benefitting daily, while some Michigan newspapers, began using soy ink four years ago and equally. including the Detroit Free Press and the currently do about 13 percent of their print- According to Bogle, soy-based black ink Greenville Daily News, have also incor- ing with the soy-based product. costs about $11 less per five pound can than "You must be a soybean producer to sit on porated soy ink into their printing shops. petroleum-based black ink, and the colored the board. At the state level there are a "We started using soy ink because it per- soy ink is priced comparatively to the group of seven farmers, and nationally, News Web Printing, the printing facility at formed better with our system and we felt petroleum-based colored inks. there's a group of 63 farmers, representing the Greenville Daily News, located in as though it gave us better reproduction," all the soybean producing states. There's no Montcalm County, which also prints the said Marter. "It gives us brighter colors and Keith Reinholt, executive director of the project approved unless they can see that Michigan Farm News, began using soy- the pictures seem to stand out more. It's Michigan Soybean Promotion Committee, it's going to increase grower's profits," based inks five years ago and currently does also more environmentally friendly and is said the committee continues to fund re- concluded Reinholt. 100 percent of their printing with the made in the USA, which does give us a product, according to General Manager, back-up if we ever get into another Kendell Martin. petroleum crunch." "We began using soy-based ink because it's Marter added that the soy-based ink seems environmentally friendlier than petroleum- to lay down better on the press and works Soybean Referendum Set for Feb. 9 The National Soybean Checkoff, directed Where the USB Spends Money by the 63-farmer members of the United Almost half of the soybeans grown in the Soybean Board (USB), has been up and United States are exported, and in 1993, running for more than two years. On Feb. 9, approximately $8 million of national check- 1994, soybean growers will have the oppor- off money was used for international market tunity to vote on its continuation in a nation- promotion in more than 400 individual al referendum. / projects. For example, the USB spent about $900,000 in Germany to defend a $900 mil- "Growers will be able to cast theiyvote at lion market for U.S. soybeans. In Japan, it county Extension offices, or cast an absen- spent about $200,000 to defend a $800 mil- tee ballot by mail," according to Harold lion market. Phillips, USB chairman and a soybean grower from Stevenson, Ala. It's important to note the USB leverages checkoff dollars with other funding. Be- liThe way it looks now, seven out of 10 cause of the checkoff dollars invested, in soybean growers approve of how the USB 1993, international programs received an goes about its business of planning and additional $12 million from the Foreign evaluating programs, making sure every Agricultural Service of the USDA, and checkoff dollar is invested wisely. We en- another $8 million from other industry seg- courage every grower to participate in the ments - manufacturers, crushers, etc. vote," he adds. While international marketing is one of the How the USB Operates Every soybean farmer contributes equally major areas where the USB puts checkoff dollars, developing new uses for soybeans What do these publications have in in proportion to the value of their crop when accounts for another large portion. •• sold: one-half of one percent. Half of the checkoff money collected stays in the state where the farmer controlled State Soybean Soy Diesel market development activities lead the new uses parade. Now moving out common with Board decides how it should be spent. of the test stage, where dozens of required EPA and engine manufacturers' tests took Michigan Farm News? These dollars are used to fund programs that place, to the market creating stage, Soy- are unique to the needs of the state or region, such as production research, or they can be Diesel shows promise to use a significant portion of the U.S. soybean oil surplus. They're all printed with Soy Ink! .' used to support a USB program the state In fact soy ink is used to print over 3,000 U.S. newspapers and is used feels warrants additional support. Checkoff dollars fund numerous other by over 12,000 commercial printers. Soy ink could potentially utilize soybean research projects: polymers that The USB uses its half of the checkoff can replace disposable plastic bottles, shop- the oil from 41 million bushels of soybeans. money to fund hundreds of research, ping bags, etc.; edible coating to preserve That's over 85 percent of Michigan's production. promotion and market develop,ment the shelf life of fruits and vegetables; next programs that need a national focus to be textile fabrics; and medical research. The effective. USB funds hundreds of research and development projects annually. Efforts Soybean Checkoff ...lt's working. This funding split among the states and such as these is an investment working to USB is an important part of the system of make growing soybeans more profitable for Michigan Soybean Promotion Committee checks and balances that underlies the every producer. checkoff ro ram. P.O. Box 287, Frankenmuth, MI 48734 . Michigan Farm News January 15, 1994 Market Outlook ... ...... •••••••• •••..•• ••••••• ••••• ~.'I •••• 'l •••...:~ 1. r• Dr. Jim Hilker, Dept. of Agricultural Economies, MSU Seasonal Commodity Price Trends MICHIGAN DAIRYING - AN EXCITING 1994? Sherrill B. Nott, Dept. of Agricultural Economics, MSU E~RM •••• .r •••••• .' ~ j~::.. •••••••• •••••••• ,j ••• •••• . CORN If you enjoy change, you'll find dairying in Michigan could be exciting. As we start 1994, milk prices to be received will benefit BUSINESS Wheat As I sit here writing, my crystal ball seems very cloudy. As you read this article, you Corn 1? from the better than expected Minnesota- Wisconsin (M- W) price levels. OUTLOOK will have the benefit of the final Crop Report and quarterly Stocks Report which Milk production was down 4.5 percent in were released Jan. 12. If you have not seen Soybeans 1? Minnesota and down 8.2 percent in Wis- High feed prices will take their toll. The them, look them up; we will discuss them consin in Nov. 1993 compared to Nov. excitement here is watching 1994's weather patterns unfold. An early first crop of in the next issue. Hogs 1 1992. If this trend continues, it will have a positive effect on the M- W price. roughage would be welcome. Will today's The Stocks Report gives us an indication of low crude oil prices hold into the growing fall feed use through Dec. 1. Since that time, Cattle -j We may hope the factors that are reducing season to help offset high purchased feed we have had some very cold weather cow numbers don't make it across Lake costs? through the Midwest which may increase feed use. Also, the Hogs and Pigs Report t Index: = Higher Prices; 1 = Lower Prices; Michigan, but we'll accept the milk price strength they foster. USDA predicts 1994 Milk component pricing may come to TP= Topping; BT = Bottoming; ? = Unsure seems to indicate a few more hogs being fed farm level milk prices will drop below 1993 Order 40 in May. This will be a very dif- through the second half of the crop year levels, but hastens to add that uncertainty ferent way to compute the pay price for milk than previously expected. These factors Strategy: What should we be doing? Well about both supply and demand conditions in southern Michigan. It'll provide an excit- should benefit corn prices. a lot depends on what the reports indicate, may make a mockery out of any price ing challenge to learn how to manage cows but here are some thoughts. If the reports projections. for more protein and lower somatic cell Exports keep rolling along near expecta- were bullish, consider pricing more of your counts. tions, considerably below last year, but at a total, especially if you are less than half Early February could see the start of BST rate which should reach USDA projections. sold. Prices are good now even if they go purchases. But, the New York Times Dairy farmers own lots of land and pay lots We have exported 40 percent of projections higher later. reported on Dec. 24 that a foundation will of real estate taxes. It will be exciting up to this point, and last year, we had ex- file lawsuits in January seeking to block towards the end of 1994 to figure out the ported 40 percent of the total by late For the portion you chose to continue sales in the U.S. History shows exciting dollar impact of any changes to school December. We will need to export about 23 speculating with, use storage and wait to rhetoric often surrounds the introduction of funding the Legislature and the voters may million bushels of corn a week through price or store and buy put options if you new technology. ultimately approve. August to reach expectations. have on-farm storage and use a basis con- tract or a minimum price contract (or buy SOYBEANS Both corn basis relative to March corn fu- calls) if you do not have farm storage. If the tures and March cash corn bids indicate the reports were bearish, we'll probably see My crystal ball for soybeans looks the same crushings will have to increase, or some market is willing to pay on-farm storage more chances to price, but don't bet your as the one for corn and for many of the same combination. until March. Opportunity costs are 1-2 cents entire crop on it. reasons. Like wheat, the Southern Hemi- per month, depending on the interest rate sphere is quite willing to throw in some Exports are running at only 37 percent of you face, and the market is offering 6-10 Another thought, if the report is bull ish, start extra twists. the projected total up to this point; last year cents for the 2-month storage. looking for opportunities to price fall 1994 we were near 40 percent by now. While it corn. The higher the market goes, the more The Brazilian soybean crop looks as good does appear we will meet projections, it is Off-farm storage payments are hard to jus- rationing (cutback in use) we will have. A as ever, timely planting and timely rains unlikely bullish information will come tify. The spreads after March tell the market trend corn yield next year will likely take us point to a lot of competition in the export from this area. it is not willing to pay storage beyond back to the $2.20 area. market come spring and summer. However, March. the picture in Argentina is much different, Strategy: The basis and cash bids for heavy rains have delayed plantings in many March delivery are telling us the same story WHEAT areas and the crop overall does not look as as for corn. If you have on-farm storage, use good. it. If you don't and want to stay in the Wheat prices have gone beyond any expec- could pressure prices. But, Argentina is market, use a basis contract or a minimum tations, but that hasn't made pricing having a lot of rain and fungus's may force The demand side for soybeans is also price contract if you want less risk. As with decisions a whole lot easier, other than the 20-30 percent of their production away clouded. Soy oil content is low which corn and wheat, start watching for 1994 worst you can do is price any remaining from food consumption. means either projected oil use will drop or soybean new crop pricing opportunities. wheat at today's high prices. There are both positives and negatives in possible price On the production side, the USDA released HOGS scenarios lurking in the future. the winter wheat plantings on Jan. 12. What did they say, more acres or less acres? Are The USDA quarterly Dec. 1 Hogs and Pigs The lighter weight market hogs, under 60 Up to this point, wheat exports have been a set-aside requirements the same as a year Report released Dec. 29, 1993, was some- pounds on Dec. 1, are 4 percent below last positive and it appears that will continue a ago? Also, what affect will this cold snap where between neutral, bullish and bearish. year which should help April prices. As we little longer. Check the SupplylDemand have on unprotected wheat? Nobody ever And that is kind of how the markets opened look toward the summer supply, a key is Report released Jan. 12 to see if the USDA said well thought out pricing decisions were the following day, up some in nearby fu- the December-February farrowings. The increased their 1993-94 wheat export easy. tures and neutral to down through the sum- report indicates farrowings will be up 2 projections. mer futures. Be watching for new crop wheat pricing percent in that period. This may pressure However, it also appears that Australia will opportuni ties. summer prices a bit, but they are still likely The report showed that there are 2 percent to get near or exceed $50 per cwt. harvest their best crop since 1984-85; this less hogs in inventory than the same time last year and 2 percent less being held for If>n~er term it appears the breeding herd CATTLE market, which after adjusting for the lIqUIdated some, down 1 percent this fall, revisions in last year's number, is slightly and that was before corn prices really shot The Dec. 1 monthly USDA 7-State Cattle- of weights being up significantly compared less than trade expectations. to a year ago. And this situation is likely to up and hog prices really dropped off. On-Feed Report released Dec. 17 showed 5 percent more cattle on feed than last year. continue into early February. However, since Dec. 1, hog producers have !,he r~port also said March-May farrowing November marketings were about the same become less current, so look for a slight Strategy: The bottom line is to keep cur- IntentIons would drop off 3 percent in 1994 as last year, but had been expected to be 3 seasonal increase in prices through January re~ative to 1993. This should help fall percent higher. rent, feeding these fat cattle more expensive before picking up some in February. feed is clearly not the answer. Is there any- pnces. Where are the increases coming thing optimistic? The answer is yes, exports from? The answer is North Carolina Mis- This shows we are probably not current. Strategy: At this point the key is to keep have been going well and that is likely to souri and Oklahoma. These are al~o the Along with this, slaughter in December, very ~urrent. It does not appear it will pay continue with the new trade agreements, states. where the large-scale farrowing while up 2-3 percent compared to last year, to walt and sell heavy hogs, especially at but that is longer term. operatIons have been going in. has not been high enough to use up much today's com prices. of the extra cattle on feed, and this is on top EGGS Leasing Farmland a Popular Trend Henry Larzelere, Dept. of Agricultural Sunday in April in 1994, Lenten price Recent. ~SDA statistics reveal that nearly half of all agricultural land is leased. One and a strength will be weaker in most of April. half mIllIon lando",,:,ners lea~e ab~ut 332 million acres. In 1980, leased agricultural land Economics, MSU totalled 3~ percent; In 1988, It had Increased to 45 percent. Leasing is viewed as an effective On Dec. 1, the number of layers in produc- way to gaIn control of land resources, enhancing management flexibility and reducing risk. Egg prices at year-end were about 5 cents tion were 2 percent above the comparable Forty-one p~rcent of all farmers operate at least some leased land. Women are the largest a dozen above last year. These somewhat better prices were partially offset by feed date a year earlier. Both total and table egg group of agnculturallandlords, controlling 40 percent of the land in the rental market. ingredient costs about 4 cents per dozen production figures in November were also above year earlier levels. 2 percent above Nov. 1992. Food Prices Expected Up - Little to Reach the Farm In the first quarter, egg prices will likely The egg-type chick hatch in 1993 was T~e Consumer Price In?ex for all food in 1994 is expected to rise 2 to 4 percent Restaurant average in the low 70s in New York at above 1992 levels in each month except pnc~s are expected t.o In.crease 2 to 4 percent. Competition among fast food 'outlets will wholesale for Grade A large white eggs in May. The layer-type eggs in incubators on contInue. t? keep ~nc~ ~ncreases moderate. The farm value of food the cost of farm cartons. By the second quarter, prices will Dec. 1 were 6 percent below that figure in ~~~~~d~~~1 u;te~m ~~n~shl~~l foo:dP~Oducl~s, totalled just under 30 pe;cent of retail food slip into the 60s. Since Easter is the first 1992. That was the first sign of moderating . ht I' e I e a ItlOna Impact on 1994 prices except the few areas of t Ig supp y. egg production by the summer of 1994. • Michigan Farm News r:. January 15, 1994 Should You Consid~'--,GRP Crop Insurance? ...... ••••••••r. .... ..... ••••••• •••••~.'I ••••••• 11 FARM . •••• " ~ ,j ••• Most of you are familiar with hail (HCI) or multiple peril crop insurance (MPCI) . Table 1 .r •••••• • ' j..:~ •••• These products are designed to reduce the GRP County Coverage and Rate Table for Corn in Jackson County ~ financial risks that occur when you have sig- nificantly below normal yields due to hail or Expected county yield: 103.7 bu/acre •••••••• •••••••• • due to drought, excess moisture and other Maximum Protection: $342/acre "Acts of God." The goal is to transfer risk from the farm to the "insurance pool." You pay premiums each year so that if you have a Coverage level: Maximum Subsidy: 65% $ 3.66/acre 70% 75% 80% 85% 90% BUSINESS Trigger yield, bu: 67.4 72.6 77.8 83.0 88.1 93.3 poor yield, you will be compensated by the Insurance pool up to your deductible. In 1994, the Federal Crop Insurance Cor- Unsubsidized premium rate, $/$100: 0.70 0.90 1.50 2.20 2.90 3.70 OUTLOOK poration/USDA added another product to the crop insurance toolbox - the Group Risk Figure 1 'l'abl. 2 s GIll' FAIlMER .-ao:1JM CAI.CtJU'l'IOliS Plan (GRP). The plan offers higher coverage 130 Jackson County Yields coal lIOmtSlID'l' (lower deductibles), minimal paperwork and State: MICHIGAN County: JACKSON lower premiums compared to their Actual 120 Expected Yield: 103.7 Maximum protection $342 Per Acre Production History (APH) plan. 110 (1) Minimum protection $103 Per Acre Your selection $300 The plan does not guarantee that you will County Yields (2) Coverage Levels: 65 70 75 80 85 90 Your selection 80 receive a payment if you have a yield 100 -:- Actual Yields Trigger Yield shortfall. That's because the losses upon " (3) (Expected County Yield 103.7 Bu. Trigger Yield: 83.0 90 / " Per Acre X Coverage Level) which indemnities are based are shortfalls in Q) > ... / county yields, not individual farm yields. .3 80 (4) Premium Rate Per $100 protection Per $100: $2.20 "0 The level of your yield vs. the level of the Q) Insured Acreage (Net Acres) county yield is not important. Within reason, >= 70 (5) (Estimated acreage of CORN in Net Acres: 100 '.I, you choose the amount of protection you want the insured county X insurable share) 60 Your Policy Protection to purchase. That can be up to 1.5 times the Line 1 X Line 5 -> $30,000 (6 ) county's expected yield. 50 Tracking is what is important. If you have Gross Premium (7) Line 6 X Line 4 X .01 -> $660 a poor yield, the county needs to have a poor 40 , yield. Thus, it comes down to what skilled Premium Subsidy Amount: 30 (8 ) 30' X Line 7 -> Lesser of: $198 commodity marketers would call basis risk if not to exceed $3.66 X Line 5 -> or $366 this were a corn or soybean market. If the risk Premium due from Grower of poor tracking is small relative to the (9 ) Line 7 - Line 8 -> $462 variability in your yields, GRP is worth con- Let's suppose you were a Jackson County farmer and that you The preliminary payment yield will be released on November. 30. sidering. decided that an 80 percent coverage policy would provide the floor on When the preliminary payment yield falls below 90' of your tr~gg~r yield, a preliminary payment will sent to you.within 30 d~ys. Th~s cash flow you need. Further, suppose that your yields were high enough payment will equal 2/3 of the payment calculat~on factor tunes your Do My Yields Track the County Yield? and more variable than the county yields to warrant scaling by 30 policy protection. That's an easy question to answer. MSU percent. You would buy about $300 protection. The final payment yield will be released on April 15 following the county extension offices, crop insurance Table 2 is a worksheet showing all the steps in calculating farmer insured crop year. Any final payment due you will be made within 30 days. agents selling GRP and some farm manage- premium/acre. We've assumed 100 acres of com in the county - to ment consultants have graphs of corn and provide an easy number for calculating. soybean yields in your county over the 1962 Summary to 1992 period. How Are Indemnities Calculated? GRP is easy to understand. It has minimal paperwork. How many Let's consider an example. Figure 1 Table 3 is the GRP indemnity calculation worksheet. Suppose the acres? How much protection? What deductible do you want? It's a shows the graph for corn in Jackson county. county had a yield of 60 bu/acre. The percent loss relative to a 20 percent product worth considering if you don't have the financial capacity to Get out your records and plot your yields deductible would be 2i7 percent and the indemnity/acre would be take a big hit or if you would like more stability in your revenues - against the graph of yields in your county. If $83.10. That's $8,310 for 100 acres. providing your yields track well with the county yield. the county had lousy yields in the same year you had lousy yields, then GRP is worth considering - if you need insurance. If your lousy years don't match the county's lousy years, GRP probably isn't for you. Who is likely to have a good tracking? You probably can think of other examples, but two cases would be a farm that's spread across a county and/or a farm that's typical of the county. My Yields Track ...but the Percentage Shortfalls are Larger on My Farm This is where the level of protection pur- chased comes in. And, this is where GRP differs a bit from hail insurance. Typically, you have some level of cash flow you are trying to protect. You usually select the de- ductible with that goal in mind. Try the following idea on for size. If your yield tends to have a larger percentage of shortfalls than county yield, simply scale up protection so the percentages match. For ex- ample, if your yields are 30 percent more variable, choose protection that's 1.3 times the county expected yield. How Are Premiums Calculated? Table 1 depicts the G RP coverage and rate table for corn in Jackson county. It describes the expected county yield that's used to cal- culate the trigger yield, the trigger yield for each coverage level (deductible), the unsub- sidized premium rates/$100 protection and the maximum subsidy/acre. It also describes the dollar value of the maximum protection you can buy per acre - $342 . • Table 3: GRP Indemnity Calculation Worksneet Value/Calculation Result Protection/A. in $ 300 Trigger Yield bu./A 83 Realized Yield, bu./A 60 % Loss = Trigger Yield - Realized Yield Trigger Yield Ba..:JiQ = 27.7% loss 83 Indemnity/A = Protection/A x % Loss 100 $300 x 27.7% = $83.10 100 Michigan Farm News January 15, 1994 G BST Management Aspects to Consider Forty dairy farmers had an opportunity Milk Production Increases Production increases due to BST ranged W hat will Posilac cost? At what point in the lactation do you begin to use it? What to ask these questions and others during an advisory committee meeting of the from 5 pounds per day to 15 pounds, with production level is required? What's the shelf life? How does Posilac affect reproductive Michigan Milk Producers Association, with an average of9 pounds per day, said Swen- performance? Monsanto representatives on their version son. Twice a day versus three times a day of BST known as Posilac. milking showed no difference in increases. Monsanto's Animal Sciences Technical "The biggest response in production oc- Services Veterinarian, Gene H. Swenson, curs with the second and third injections, Posilac Product Manager, Robert Powell, and then it plateaus at the higher production and Director of Industry Affairs Monte level for as long as the cow continues to Hemenover were on hand to respond to receive Posilac," Swenson explained. questions and share research information "On average, first-calf heifers experienced from nearly 10 years of testing. approximately a 2 pound less per day in- crease compared to second- lactation cows. " Milk Composition Swenson told the group that Posilac is a protein not a steroid, meaning that it's digested when consumed orally. BST does not affect the composition of milk ac- cording to research results. '1; Despite the apparent dif- ferences shown in the table below, they are not statisti- cally different, Swenson said. Milk Composition Comparisons Posilac Non-Posilac Fat 3.67 3.76 Protein 3.24 3.32 Lactose 4.81 4.85 Ash .73 .73 Feed Intake The most important aspect of Posilac management, according to Swenson, is making sure the cow is fed to her higher production level. "You have to keep feed available at all times, and be ready to in- crease your rations," he said. "Dry matter intake increased generally six to seven weeks after BST use was initiated, in second lactation cows." ~ ~ According to Swenson, as a general rule of thumb, herds on a total mixed ration will require an additional four pounds of feed for every 10 pound increase in milk. In non- TMR herds, plan on increasing con- centrate levels by one pound for every three pounds increase in milk production .... Reproduction Impact In regard to reproduction perfor- mance, Swenson said that research has shown no difference between BST and non-BST treated cows at similar produc- tion levels. He was quick to point out, how- ever, that higher producing cows are generally open longer than lower 7. producers. "An old rule of thumb is that every 200 pound increase in milk production on a 305 day lactation generally increases the num- ber of days open by one," Swenson said. "We recommend that producers continue with their normal breeding program, and continue using Posilac right up to the dry- off period." Breeding Performance Heifers L;OWS non- non- BST BST BST BST For over forty years, Farm Bureau and Blue Cross Blue Shield Days Open 118 119 112 131 have teamed up to provide guality health care at competitive group rates Pregnancy Rates 91% 83% 94% 82% with the personalized service you would expect from a Farm Bureau family membership. * 305 day lactation - bred after eST started at nine weeks No matter what your needs ... Mastitis Frequency small business, sole proprietor, or indiyidual coverage for you or your family- .Swenson exp!ained to the advisory com- we have the right' plan at the right price. mIttee that the hIghest period for new infec- tio~ in a cow occurs early in the dry-off penod, hence the use of dry-cow mastitis Blue Cross Blue Shield quality and Farm Bureau's personalized service treatment. Posilac use is started in the ninth provide an unbeatable combination that you can't afford to be without when protecting week of lactation, which coincidentally is the lowest opportunity for new mastitis in- the "small" things in life that are of big importance to you. fection. "Increased milk production has been For information, call 1-800-292-2680 or contact your local Farm Bureau agent. demonstrated to increase the incidence of mastitis," Swenson said. "The bottom line, _".,CH,GAN .... FARM BUREAU however, is that BST research has shown that producers can expect one additional case of mastitis per cow over 10 lactations, because of the hi her roduction. " .,. Michigan Farm News -. January 15, 1994 BST Economic Aspects to Consider To introduce Posilac, Monsanto is using the "Try it Right" program, which means producers can make a qualifying Posilac Price Worksheet Posilac Price Worksheet purchase of Posilac equal to the number of (Example assumes 100 cows treated for 245 days/lactation) For Your Farm cows in their herd for $5 per dose, for an Milk Response (Ibs/cow/day) 6 pounds 9 pounds indefinite period of time, according to Milk Response (Ibs/cow/day) .. Monsanto's BST Product Manager Robert Milk Value ($/cwt.) $12.50 $12.50 Powell. Posilac will normally be priced at $6.60 per dose for a daily cost of 47 cents. Milk Income ($/day) 0;15 1.125 Milk Value ($/cwt.) .. Monsanto is also using a voucher sys- Posilac Price (14 days) 6.60 6.60 tem, that will allow a producer using Posilac Costs ($/day) 0.4 7 0.47 Milk Income ($/day) . Posilac for the first time to get $150 worth of free veterinarian consultation services. Feed Costs ($/day)* 0.21 0.315 Powell thinks that producers will quick- Posilac Price (14 days) . $6.60 Total Incremental Costs ($/day) 0.68 0.785 ly realize the economic pay-off of BST, once they put pencil to paper. Net Profit ($/cow/day) 0.07 0.34 $0.47 Posilac Costs ($/day) .. "The beauty of this product is that it Profit Opportunity allows a producer to make a substantial (100 cows/lactation) $1,715 $8,330 increase in production, without a large Feed Costs ($/d.ay) . capital outlay," he said. "It will also provide * Assumes feed costs of 3.5 cents/pound increase in milk. a better return on current capital invest- Total Incremental Costs ($/day) . ments. In many cases, using the nine pound According to Powell, Monsanto is offering a generous credit average increase, a producer could expect program, that allows a producer to order Posilac the first of the Net Profit ($/cow/day) .. .. a net of $80 per cow per lactation." month, with billing occurring on the 20th of the folIowing month . '. In addition to spreading overhead and optimizing existing facilities, Powell said "This will allow a producer to actually receive the benefits of Posilac prior to incurring charges for the product," Powell ex- Profit Opportunity (# cows/lactation) ....... produc~rs can extend the profitability of a plained. "However, as soon as the cow increases her feed intake, * You could also use this worksheet to calculate your total costs and long lactation with problem breeders, and the producer will start to experience incremental costs. The same local milk value to determine the actual milk response you would need on your farm to break even. if so desired, a producer can maintain cur- could be said for labor charges too." rent production levels with less cows. \, Posilac Facts D 500 mg. of BST/dose in in- dividual syringes, complete with 5/8" 16-gauge needle. TAKE'THE~'BITEOUT OF DENTAL CARE COSTS D Start using during the 9th week of lactation right up to dry-off. Monsanto advises use of Posilac on healthy cows only. D Inject under the skin every 14th day in the depression on either side of the tail head or behind the shoulder blade. D Five to 15 pound/day increase in milk production, with an average 9 pound increase expected. D "Try it Right" introductory offer ~f $5 per dose. Normally priced at $6.60 per dose. D No drug withdrawl period for milk or meat is required. D 36-month shelf life for Posilac. D Posilac must be refrigerated. D Buy direct via a 1-800 phone number. D Used syringe disposal program allows producers to send used syringes back to Monsanto for disposal. Michigan Milk 4 P roduction Down Slightly in November Member dental insurance is the affordable way to assure that you and your family Dairy herds in Michigan produced 424 mil- receive the dental care services you.require - even'when sudden and costly needs arise. lion pounds of milk during November, 4 milIion pounds less than a year ago, accord- Measure the rates against your annual dental care bills and consider the advantage! ing to the Michigan Agricultural Statistics Service. Milk per cow averaged 1,250 - Single $18 per month • Couple $32 per month pounds, down 10 pounds from last year. Member/C.hild $32 per month • Family $41 per month The Michigan dairy herd was estimated at .... 339,000 head, down 1,000 head from Nov . ...... CIl.CAN . 1992. .... J:ARItl BIJREAIJ The preliminary value of milk sold TO RECEIVE ADDITIONAL INFORMATION AND A BROCHURE/APPLICATION, PLEASE FILL OUT THE COUPON BELOW averaged $13.60 per hundredweight (cwt.) OR CALL DIRECT 1-800-292-2680 EXT- 3236. in November, $.30 more than last year. Mid-month October slaughter cow prices Please Print averaged $43.30 per cwt., $2.30 less than the previous year. Please mail to: Michigan Farm Bureau Name Membership Services Milk in the 21 major states totaled 10.0 P.O. Box 30960 Address bilIion pounds, 2 percent below production Lansing, MI 48909 in these same states in Nov. 1992. Produc- Citv State ZIP tion per cow averaged 1,237 pounds for Phone November, unchanged from Nov. 1992. The number of cows on farms was 8.08' Count¥ million head, 152,000 head less than Nov. 1992 and 10,000 below Oct. 1993. MFN Michigan Farm News II. January 15, 1994 ......" You're invited to a dairy seminar. No one should miss this informative seminar of healthy, well..managed dairy facilities. This sem.. on stray voltage and the latest in dairy facilities inar is coming to your area soon, so watch your planning. Jointly sponsored by the Michigan State mail for more information. We're sure you'll want University Extension and Consumers Power, the to attend. If you think you have a stray voltage seminar explains the causes and effects of stray problem, call Consumers Power's voltage, how to recognize it and how it can be stray voltage specialists 'immedi .. corrected. We'll also highlight the characteristics ately at 1..8(X)'..252 ..VOLl: Michigan Farm News -. !. January 15, 1994 II Restricted Use Pesticide ENVIRONMENTAL Certificate Rules Jim Good, MSU Extension Private applicators (farmers) need 12 .~~ STEWARDSHIP credits and commercial applicators need 18 Due to the fact that restricted use pesticide in one category plus six in any other certifications expire at the end of the third category they wish to renew. In this case, • year, it's a good idea to review the proce- dures for re-certification. send your renewal application, a list of the credit programs and dates, and a check for ~ ~J~. the fee back to MDA, Lansing. If you want to know when your certification expires, check the lower right hand corner If you have not been certified as a of your green certification card. You should Restricted Use Pesticide (RUP) applicator have received a renewal application in the or your certification has lapsed, you must mail from the Michigan Department of pass a core test for commercial, at least one Agriculture (MDA) well before the end of category test, but should be certified in any To be certified or re-certified by testing, Prior to taking the test, get a current study 1993. Keep this in a place where you can category you apply pesticides in. register for one of the many test site dates manual from Extension. Most of these have find it later! If you didn't get one or lost and take your completed application and a been updated in the last 18 months. it, call MDA at (517) 373-1087. New certification applications are available check (State of Michigan) to the test site. from Extension and MDA offices. Note: Don't mail it in! Note: If you are a farmer who applies pes- To renew, you have two alternatives. First, Private applicators are growers of crops or ticides for anyone else in the course of take the renewal test and receive a passing trees applying RUPs on their own or rented About 10 days after the test, you will be employment, you probably should have grade (70 percent or higher). Second, if you lands. This includes farm employees. Com- notified of passing or failing. You will be commercial certification. A new ruling have accumulated enough educational mercial applicators are any other RUP ap- issued a plastic RUP Certification card if states that non-farm commercial applica- credits and can list them for MDA, you are plication and if done for hire (customer you pass; if you failed, you can take the test tions of ready-to-use general use pesticides renewed without testing. application), you must also be licensed. again. (GUPs) do not require any certification! National Survey Shows Conservation Tillage Putting the Plow to Rest A nationwide survey shows more farmers Mulch Till Leads the Way u.s. Tillage Trends are abandoning the plow for the economic Mulch-till is the largest among the conser- and environmental benefits of conservation vation tillage categories, adding 1.6 million Crop Residue Levels: 0-1 SOlo VS. 15-30% And Above. tillage. The 1993 National Crop Residue acres this year for a total of almost 59 Management Survey indicates the number million acres. No-till continues to post the of planted acres that benefit from less til- largest annual increases in the conservation 180 lage could soon outpace the acres that are tillage categories, growing more than 6.7 million acres this year to encompass almost 160 plowed or tilled clean of crop residues. 35 million acres in 1993. Ridge-till grew by V) 140 w Farmers who practice conservation tillage, 100,000 acres this year, it now accounts for ~ about 3.5 million acres nationwide. U 120 either no-till, ridge-till or mulch-till, leave < It 30 percent or more of the residues from u.. 100 previous crops on the ground after planting. The survey includes a 15-30 percent 0 V) residue category which is not a form of Z 80 According to the survey, this soil-protect- conservation tillage but may represent a 0 positive system for soil erosion control. ~ 60 ing and labor-saving practice has been ad- -' ding an average of about. 9 million acres for Combined with other conservation prac- ~ 40 the last two years and is now less than 11 tices like strip cropping, terraces, and rota- million acres away from the number of tions, 15-30 percent residue levels can pro- 20 acres that are clean tilled. vide adequate erosion control. Adding the 15-30 percent category to conservation til- 0 Survey coordinator Jerry Hytry, executive lage acres, more than 170 million acres or 89 90 91 92 93 YEARS director of the nonprofit Conservation 61 percent of the 278 million planted acres • 15-30%+ - Crop residue levels left after planting Technology Information Center (CTIC), in the U.S. utilized some form of crop predicts the acres of conservation tillage residue management system. D 0-15% - Crop residue levels left after planting will overtake the number of acres clean .Source: Conservation Technology In(ormation Center tilled next year. Regional/State Highlights • Regions with the greatest conservation • Ridge-till's top state is Nebraska, with • No-till full season soybeans have in- "Economics are driving this transition and tillage acreage are: Com Belt - 37 million nearly 1.5 million acres. Minnesota, a dis- creased over five times in the last five years, I fully expect conservation tillage to exceed acres, Northern Plans - 24 million acres, tant second, has 600,000 acres. from 4 percent of total planted acres to 22 clean tilled acres in 1994," says Hytry. and the Great Lakes States - 9.5 million percent his year. acres. • Ridge-till is most practiced in the Northern The survey, which includes more than Plains with 1.9 million acres, followed by • Use of conservation tillage for full season 3,000 counties nationwide, shows conser- • The largest no-till state is Iowa with 6.9 the Com Belt with 700,000 acres, and close- soybean production now exceeds 47 per- vation tillage accounted for over 97 million million acres, followed closely by Illinois ly behind are the Great Lakes States with cent of planted acres, half of which is acres or nearly 35 percent of total cropland with 6.3 million acres. 600,000 acres. mulch-till. " t acres planted in 1993. Almost 39 percent or nearly 108 million acres are being clean • Mulch-till is the strongest of the conser- Crop-Related Highlights • No-till cotton has increased more than tilled, leaving little or no residue. vation tillage types in the Southern Plains, • No-till com has more than doubled in five three times in the last three years, with Mountain and Pacific regions. years from 7 percent to 17 percent of all Tennessee, Alabama, Georgia, North planted acres in 1993. Carolina and Mississippi leading the way. Slicing Through To Zone- Till: The Rawson Zone-Builder from Unverferth Eliminating the yield limiting effects of table to virtually any row spacing. Theil" hardpan is the first step toward successful replaceable shank points slice through the adoption of the Zone-Tillage soil manage- hardpan opening with minimal surface soil ment system. Only the Rawson Zone- disturbance. The shanks can be positioned Builder deep-till implement from Unver- to work directly under the rows, or between ferth is designed specifically for this pur- them, to a depth of 26". pose. The Zone-Tillage soil management system The Rawson Zone-Builder deep-till imple- combines the seedbed preparation benefits ment slices through hardpan to create a of conventional tillage with the conserva- passageway that allows plant roots and soil tion compliance benefits of no-till and moisture to move freely into the subsoil. ridge-till, without sacrificing yield. Unless this is done, plants can only use the nutrients and soil moisture above the Rawson Zone-Till products are manufac- hardpan, making them vulnerable to the tured and marketed through Unverferth weather extremes of drought or excess Mfg. Co., Inc., a leading manufacturer of moisture. quality agricultural wheel systems, grain handling, seed handling, tillage equipment, The deep-tillage operation is equally effec- and the Brent line of products. tive when done in the fall or spring and whether you till between every or every For more information about the Zone- other row. If done as a spring operation, the Builder deep till implement, the Zone- Zone-Builder deep tillage tool can also be Tillage soil management system, and the used to side-dress nitrogen at the same time entire line of Rawson Zone-Till using optional Zone-till sealers. products, contact Unverferth Manufac- reset and special alloy steel shanks that dig shank through the field. Available with turing Company, Inc., P.O. Box 357, The Rawson Zone-Builder deep-till imple- down and through compacted soil. A 20" four or six shanks, the Zone-Builder deep- Kalida, OH 45853. Telephone 1-800-322- ment from Unverferth features automatic ripple coulter that cuts residue leads each till implement from Unverferth is adjus- 6301,419-532-3121 or fax 419-532-2468. Michigan Farm News .. ' GRP Crop Insurance - Is It for You? •• continued from page 1 January 15, 1994 With the 40-bushel yield, and a $5.75 Federal Crop Insurance Corporation (FCIC) "We had too many farms in some markets indemnity price for soybeans, the maximum to develop the GRP concept. that were collecting year in and year out - GRP Benefits protection level would be 40 bu. x $5.75 x 1.5 "Congress has been trying for some time something clearly wasn't working very well," D It's typically cheaper than traditional = $345. If the county yield dropped to 20 to make the Federal Crop Insurance Program Black said. "During the Bush administration, crop insurance. bushel per acre, that represents a 44 percent work," Skees said. "However, every time we OMB (Office of Management and Budget) shortfall (36-20/36). The percentage sh9rtfall have a major catastrophe, Congress also started looking very aggressively at GRP as a o It has higher coverage choices (lower is multiplied by the protection level to derive = comes in and provides additional incentives way to provide a reasonable amount of protec- tion for many farmers. They would absolutely deductible options) than tradItional a payment figure (.44 x $345 $151.80). and protection. With GRP, we now have a crop insurance. Each farmer with this contract in that par- mix between free disaster assistance and the like to get out of the disaster program busi- ticular county would receive a payment of current multi-peril crop insurance program." ness, and secondly, be able to offer more o protection It has the potential of providing against catastrophic $151.80 per acre. Between fiscal years 1980-90, the net cost flexibility in their insurance programs." Available In Limited Counties of the U.S. crop insurance program averaged According to the FCIC, Michigan's loss events that are common across a GRP will be offered for corn and soybeans $489 million per year. However, the average ratio for corn, wheat, and soybeans averaged county, such as drought. only in those counties with 15,000 or more $489 million per year for crop insurance was 2.48 from 1981-89. That fact alone, got o It requires minimum paperwork. All it acres of those commodities. GRP coverage must be purchased in the county where the only 24 percent of the total net cost of U.S. government disaster assistance programs Michigan selected as one of several states to participate in GRP. "Michigan, as a whole, asks is, "How many acres of has taken a lot more out of the insurance pool acreage is located. over the period. The remaining 76 percent corn/soybeans do you farm and how than it has put in," Black concluded. Black predicts that if the G RP concept was for free disaster assistance payments and many dollars per acre of protection The bottom line, says Black, is that GRP do you need? takes off, that acreage figure could be reduced low interest loans. to 10,000 acres meaning that more Michigan According to Skees, research using 3,000 offers the producer two primary advantages, o It's easily understood by farmers who counties could participate in GRP. "I would be real surprised, however, if the soybean farms has shown that two-thirds of these farms would have reduced their risk considerably less paper work, and in many cases it will cost much less than conventional are experts in commodity marketing since the concept is very common to acreage cut-off went below 10,000 acres, more during the 1980s with a GRP policy at MPCI. There is, however, a downside to GRP, options or futures contracts. since the program is based on county yield to 90 percent than with a MPCI policy at 75 he cautions. establish the insurance rates," Black said. percent. Consistently bad managers would If your yields don't track well with county WhyGRP? not be able to collect with GRP, since pay- yields, then you're not going to achieve your GRPCaution objective of having an indemnity payment in GRP is designed to eliminate many of the ment is based on shortfalls in the county's o GRP doesn't guarantee payment if shortcomings of conventional multi-peril yield, not the individual's yield. those years when you need it the worst," Black you experience a yield shortfall on crop insurance, namely those of cost, duplica- Black agrees with Skees, adding that a said. "It's conceivable that you might have a your own farm, while the remainder tion, low participation, and program abuses, tighter federal budget and a growing concern severe yield loss in your part of the county, of your county experiences normal according to Dr. Jerry Skees, professor of by public policy makers over the existing and still not get paid. However, it's also con- yields. agricultural economics at the University of MPCI program's ills prompted the testing and Kentucky. Skees is under contract to the development of GRP. Continued next page see "GRP" Your Michigan NORTHRUP KING Seed Dealers City Dealer Phone No. Alicia Con Agra Berger & Co 517-770-4130 Alma McClintic Farms 517 -463- J 140 Alto Alto Farm Services 6 I6-868-6030 Ann Arbor Strieter Bros 3 13-995- 2497 Auburn Ittner Bean & Grain 517-662-4461 Bancroft Gerald Cole 517-634-52 J 2 Belding Jerry Gallagher 616-761-3243 Birch Run Con Agra Berger & Co 517-624-9321 Blissfield M.A.C 517 -486-2171 Breckenridge B&W Co-Op 517 -842-3104 Carson City Harvey Milling Company 517-584-3466 Conklin Arends Farm Service 6 I6-899-2 I36 Constantine Ron Weston 616-435-8219 Corunna Clyde McLosky 517-743-3633 Diamondale John Oakley 517-646-0629 Dorr Dorr Farm Products 616-681-9570 Dowagiac Harold Grabemeyer 616-782-8744 Dowagiac Joe Van TuyIe 616- 782-827 5 Freeland Coli Agra Berger & Co 517-695-2521 Homer Tri-County Agra Services 517-542-3196 Lake Odessa Mark Erickson 616-374-8538 Mason R & S Crop Service 517-628-2036 This superior hybrid can produce top yields. Merrill Con Agra Berger & Co 517-643-7293 Exceptional standability means easier harvesting. Middleton M.A.C 517-236-7263 It has excellent drought tolerance, adapting to Minden City Eugene Briolat.. 517-658-8330 a wide range of harvest densities. Adapted to Monroe Calvin Smith 3 I3-269-27 I0 reduced tillage to help you get the most from New Lothrop Anderson Fertilizer Services. Inc 313-638-5868 every acre. Northrup King N4242. New Lothrop Bob Hajek 313-638-5281 Owosso Portland Reading Richmond Anderson Fertilizer Services, Inc Frank Trierweiler Dick Heffelfinger Farmers Elevator 517-723-5205 517-587-6540 517-283-2444 313-727-3025 N4242 Rockford Ron Porter.. 6 I6-874-8 196 Saginaw Seamon Farms 517 -777 -2054 Union City David LaBar 517-741-3204 CPO Vestaburg Con Agra Berger & Co 517-268-5300 NORTHRUP KING Zeeland Zeeland Farm Services 6 I6-772-9042 '-:': Michigan Farm News II. January 15, 1994 Farm Bureau Insurance Agents to be Trained for GRP Sales The following Farm Bureau Insurance City Name Phone City Name Phone ~gents wi.1I be going through training meet- Caro, David Kolacz (517) 673-5553 Homer, Terrace Anderson (517) 568-4342 City Name Phone lOgS dUrIng the months of January and Carson City, E.J. Horricks (517) 584-3508 Ida, David Brown (313) 269-3275 Petoskey, Thomas Gambrell February, in preparation for GRP sales in Centreville, Larry Frisbie (616) 467-6308 Imlay City, Dan Duncan (313) 724-6407 (616) 347-6051 the 37 selected counties. Training dates and Charlotte, James Camp (517) 339-3222 Ionia, Robert Shelden (616) 527-3960 Petoskey, Dick Schaefer (616) 347-6051 locations are: Charlotte, Dave Simpson (517) 543-5565 Ionia, Dan Croel . (616) 527-3960 Pigeon, Bill Weitzel (517) 453-3334 Jan 25 Lansing Chesaning, Robert St. Gordon Iron Mt., Tony Demboskl (906) 779-1774 Pigeon, Jim Armbruster (517) 453-2502 ~ .28' (517) 845-7090 Ithaca, Jerome Desrochers (517) 875-2200 Port Huron, Carl Tice (313) 984-5200 - Jan. , Kalamazoo Dundee, Larry Brossia (313) 529-3939 Jackson, Robert Nelson (517) 782-0485 Portage, Clayton Hisler (616) 342-0212 ~ebb'~~' ~aylpolrd Elkton, Frank Kluger (517) 375-4598 Jackson, Robert Cowing (517) 784-9166 Reed City, Michael Burke (616) 832-3283 . e. , t. easant Escanaba, Daniel Veeser (906) 786-4757 Kalamazoo, Robert Vlietstra Rogers City, Dan Gabara (517) 734-2692 Feb. 18, Lapeer Escanaba, Dwayne Klein (906) 786-4757 (616) 381-2311 Romeo, M. John Pearson (313) 752-3554 Escanaba, Rick Jensen (906) 786-4757 Kawkawlin, Ed Samborn (517) 697-3146 Sandusky, Max Kreger (313) 648-2800 According to Jim Gallagher, manager of Fennville, Warren Wilkinson L'Anse, Roland Sweeney (906) 524-6229 Shelbyville, Ann Davis (616) 672-9300 Community Service Acceptance Company, (616) 561-2514 Lakeview, Todd Lincoln (517) 352-6069 Spring Lake, John Queen (616) 846-6909 the company that provides for Farm Fenton, Steve Keswick (313) 629-1507 Lapeer, John Welke (313) 664-4928 S1. Johns, Michael White (517) 224-3255 Bureau's Crop Insurance sales and service, Fowler, Tom French (517) 593-3104 Laurium, Martin Olgren (906) 337-2700 St. Johns, Don Keirn (517) 224-3255 Frankenmuth, Carl Gustafson Marlette, Jack Walker (517) 635-7563 St. Johns, Dale Feldpausch the agents will receive training and (517) 652-6411 Marshall, Larry Robinson (616) 781-2849 (517) 224-3255 9 materials to aid their farmer clients in decid- Frankenmuth, Dale VanFleet Mason, Vic Whipple (517) 676-5578 S1. Johns, Daryl Feldpausch ing whether or not they should participate (517) 652-6411 Midland, Dave Katt (517) 631-4903 (517) 224-3255 in GRP in 1994. For more information and Fremont, Ben Landheer (616) 924-4000 Midland, Linda Martin (517) 631-6222 Standish, Marvin Schwab (517) 846-6323 assistance, call your nearest agent before Gladwin, Duane Simpkins (517) 426-8131 Midland, Ron Andrews (517) 631-6543 Stephenson, Edward Johnson the April 15 sales closing date. Grand Rapids, Mark Johnson Midland, Larry Breasbois (517) 631-6222 (906) 753-6620 (616) 940-8181 Montrose, James Hardy (313) 639-7077 Three Rivers, Loren Carlisle City Name Phone Grand Rapids, Dale Johnson M1. Pleasant, Gordon Moeggenborg (616) 273-9551 Allegan, Dennis Smiertka (616) 673-6651 (616) 940-8181 (517) 772-0996 Union City, Ralph Strong (517) 741-7353 Allendale, David Carlson (616) 895-5321 Grass Lake, Charles Tobias ( Munger, Dan VandenBoom Unionville, Ted Balzer (517) 674-8617 Allendale, Robert Willard (616) 895-4380 517) 522-8066 (517) 895-8600 Wayne, Mark Patterson (313) 729-2012 Alma, Ron Artecki (517) 463-4859 Harrisville, Alvin Sharp (517) 724-6524 New Era, Roger Fessenden W. Branch, Darrell VanPamel Alpena, Jim Milstein (517) 356-4582 Hillsdale, Noble Bertalon (517) 437-7393 (616) 861-5219 (517) 345-0230 Alpena, Margaret Schultz (51 7) 356-4581 Hillsdale, Douglas Miller (517) 437-7393 Onekama, Marcia Korwin (616) 889-3228 W. Branch, Vern Clemens (517) 345-1447 Bad Axe, James Leonard (517) 269-6520 Hillsdale, Duane Sanford (517) 437-7619 Orion, William Porritt (313) 391-2528 W. Branch, Mary Kartes (517) 345-1447 Battle Creek, Tom Cain (616) 963-4214 Battle Creek, Scott Hisler (616) 979-3337 Bay City, Joe Davis (517) 892-9771 I Berrien Springs, Larry Dobberstein II~ Can Our Annuity (616) 473-2722 Berrien Springs, Marty Rudlaff (616) 473-4791 I Big Rapids, Paul Jefts (616) 796-7697 Birmingham, Rita Ski (313) 644-6364 Breckenridge, Jim Cooper (517) 842-3220 Cadillac, Leon Bigelow (616) 775-0126 Save Your Retirement? In his autobiograph~ Groucho Marx tells how an annuity helped him at a crucial point in his career. The annuit}', he said, gave him such a feeling of security that he was able to pursue his career with a lighter Y . .:::r :-: m' t . ,', ...::: :- ,- ... 0 ' (') :..;.~~.:"" - ,.;::::::' U' I ,='.,;.;~;:.: *. I .,:;:::~ . :~, .. heart and more confidence. An annuity from FB Annuity Company soybeans may not save your career, but it can save soybeans your retirement. Our IRA annuity corn soybeans corn soybeans guarantees you a lifetime retirement corn corn income - a check every month for as long corn corn as you live. '