NiiCHiG~.N'S ONLV:'S'TATEWIDE FARM NEWSPAPER' MICHIGAN FARM BUREAU' .,CH,GAN FAR. BUREAU ,,- January 30, 1997 Vol. 74, No.2 Economy - in a word, stagnant by Lester V. Manderscheid D ull. Ho hum. Those words are used by many to describe the outlook for the U.S. economy for the next year. The choice of words reflects a belief that the economy will continue to grow at a 2.2 to 2.5 percent rate. Unemployment will be near current levels, as will inflation. Interest rates are expected to vary little from 1996 levels, with some downward drift more likely than an upward movement. Month-to-month variations will continue, but will probably be small- er than during the past year. Introduction of the indexed Treasury bond will introduce an element of uncertainty until the market is established. Most economists do not expect the introduction to significantly affect other interest rates such as mortgage rates or operating loans. What are some of the risks that might cause the economy to behave differently than outlined above? One concern is the behavior of the econo- mies of other major countries. For example, the Japanese prime minister announced a reduced role for the government in the economy and that no money would be available to prop up the Japanese financial markets. As a result, prices on As producers head into 1997 ready to face the challenges of another crop season and varying livestock markets, Michigan State tht Ib~ Stock Exchange, as measured by the University's Department of Agricultural Economics has once again provided its annual Economic Outlook Issue covering ev~rything Nikkei Index (similar to the Dow Jones Index for from the demand for inputs to the variables in final pricing for agricultural end products. the U.S.), fell 19 percent in six weeks. Will this and future events affect other econ.:>mies? Another risk concerns lacklusLf pioduttivi- 1997 outlook for production inputs ty in the U.S. Over the past two Y¥lfS:-prodJctivi- by Chris Peterson chemical sector. Continued downward pressure on decisions about their suppliers for each input. ty grew at an annual rate of 0.6 percent. The out- nlike 1995 and 1996 when the big news demand will come from environmental regulations Agribusiness dealers and retailers are increas- look reported above assumes a productivity in- was tight nitrogen supplies and rapidly as more lower-use cultivation practices continue to ingly offering and seeing demand for unified pro- crease of about 1.7 percent per year. If productiv- • accelerating prices, the 1997 fertilizer increase. Many manufacturers continue expensive grams that combine fertilizer, chemical and seed ity remained at current rates, unemployment outlook is good news for producers. Nitrogen sup- biotechnology research. Chemical firms are increas- purchases into a package. These packages include would fall, overtime would increase, there would ply difficulties appear to be behind us with supply ingly moving into seed markets as they perceive not just the inputs themselves, but customer appli- be upward pressure on prices, and the Federal and demand roughly in balance. As a result, nitro- their traditional markets declining. cation, full-line agronomy advice and, at times, ser- Reserve Board might increase interest rates to gen prices have been stable for a number of months Seeds vices related to precision (site-specific) agriculture. slow inflation and economic growth. with recent prices actually moving downward. Generally, traditional corn and soybean seed Producers need to increasingly weigh the A number of economists believe the prob- One would expect prices to firm as we move supplies should be good, with prices slightly up. advantages of independent input decisions versus lem is how we measure productivity. How does closer to the planting season, but the overall out- Last year, seed prices nationally did increase rather the potential advantages of working with a specific one measure productivity in the entertainment look is for stable to lower prices versus the last two dramatically by an average 6.4 percent. Some of this dealer who can provide a full range of services tai- industry? Other areas where productivity is hard years. Phosphate and potash supplies are also good increase was clearly fueled by the 10 percent in- lored to producer needs. to measure include construction, wholesale and with expectations for stable prices. crease in seed use because of acreage expansion. Eneru retail trade, insurance, finance and other services. On the demand side, the absence of govern- This increased demand pressure will not be a key Nationally and locally, fuel supplies should be The Federal Reserve Bank of St. Louis says ment set-asides under "Freedom to Farm" means factor this year. good this year. Prices have unfortunately been vola- we can reasonably estimate productivity in 29 that nationally a substantial increase in acres plant- BiD-tech seed will remain in tight supply with tile, moving upward in balance. For 1997, the Depart- percent of the economy. In other words, we have ed occurred last year with any substantial additional some uncertainty about demand and price. For ment of Energy forecasts an average crude oil price no reasonable measure of productivity for more increase in acres planted unlikely for this year. De- producers who had a successful year with these below the 1996 level, which should bode well for than 70 percent of the economy. Their calculation mand will thus be historically high, but the pressure seeds, repurchase is strong with supplies largely retail prices. However, domestic production of crude is that we had reasonable measures for 43 percent of rapidly increasing demand will not be present as committed. The full impact of Bt corn and Roundup will be down sharply, at 5.5 percent from last year, of the economy in 1959. The increased impor- it was in 1996. Ready soybeans will take several years to determine, resulting in a rise in imported crude to 50 percent of tance of services and the failure to invest in better Chemical. and their adoption will be among the most closely the market share. This contrasts with an average 44 statistical measures have substantially reduced the Chemical demand will also be little changed watched trends in the seed industry. percent import share through the early years of this accuracy of the reported productivity measure. If from last year, although the introduction ofbio-engi- Dry edible bean seed supplies should be ade- decade. This increased dependence on foreign oil the reported measure is accurate, there may be neered crops makes this a more difficult prediction quate this year with perhaps some specific variety will probably add to the volatility of supply and price. problems ahead for the economy .• than in the past. In its first year, Bt corn has shown shortages, depending upon planting decisions that Equipment mixed yield results around the state, but its broader appear more uncertain this year than in the past. Continued strength in farm incomes and ex- adoption will decrease chemical demand in the long- The corrvervence of fertilize" chemical pectations for strong commodity prices made 1996 er run. On the other hand, Roundup Ready soybeans 8ncI seed markets a strong year for agricultural equipment sales na- will increase chemical use for that product. With increasing environmental concerns tionally. In Michigan, the mixed crop year resulted Chemical supplies are more than adequate, about fertilizers and chemicals, and the conver- in relatively weak demand with many dealers not with likely downward pressure on prices. There gence of the chemical and seed industries through doing as well with sales as in 1995. Expectations for have been a number of new product registrations biotechnology, it will become increasingly difficult 1997 equipment sales are not that much more posi- recently with older products still readily available. to view the outlook for fertilizers, chemicals and tive in Michigan. Equipment supplies should be As these new products attempt to buy initial market seed as distinct issues. Demand for all three inputs adequate while prices are likely to be up with the share, chemical prices should be held in check. has certainly been highly correlated in the past, but cost of infiation .• Longer-term forces are still at work in the purchasers have traditionally made independent INSIDE THIS ISSUE OF THE MICHIGAN FARM NEWS News in Brief 2 Precision Agriculture: Precision ag Management implications Capitol Corner 3 meets farmers' need for details 9 for livestock entrepreneurs 13 1997 Michigan farm income outlook. 4 Apple crop expected to rebound, Institute of Agricultural Technology cherries to focus on marketing 10 great opportunity for students ....... 14 Market Outlook 6 1997 dairy situation and annual Trade for 1997 - overall value of ag AFBF delegates: New ag era requires outlook - keep a sharp pencil 11 exports to drop 15 new approaches 7 Weather Outlook 12 Farm management implications Business Strategies 8 for crop producers 16 Special manure management supplement - first in the Right to Farm series IOO~~ll'I::t'!!0 January 30, 1997 Nellls To help streams run clear; short grass does EPAto propose stricter air standards .' I'., B.' ..~rle. f as well as tall G rasses and sedges dipped short are as effect. ive as taller stubble vegetation in trapping T he Environmental Protection Agency is expect- ed to propose stricter air quality standards to reduce pollution from smog-forming ozone and airborne particulates. The increase in standards the proposal would have dramatic effects on eco- nomic growth and lifestyle changes for virtually all Americans living in affected areas. Industry groups favor operating under the current standards and sediment being washed into streams. That's impor- comes as a partial result of a lawsuit filed by the having the current standards be one of the options tant news for land management agencies seeking American Lung Association against EPA. in its new proposal. information on how to rehabilitate overused areas ''These standards would be big improvements ''The potential economic impacts are not lost USDAbars Sun-Diamond - such as areas damaged by recreation or livestock over the current standards," said Paul Billings of the on people, and there is a strong determination from food programs grazing along rivers and streams. American Lung Association. "Industries are scream- within the White House to make absolutely certain T he Agriculture Department formally banned Sun-Diamond Growers from participating in The key is the width of the grass barrier, not the height of the stubble, say scientists at the Agricultural ing pretty loud, so you know they are an improve- ment." that EPAplays this straight in terms of giving genu- ine consideration to no-action alternatives or other federal food purchase programs for three years. In Research Service. Agrass barrier 30 feet wide will The National Association of Manufacturers is alternatives to those that EPAfavors," said NAM October, USDA proposed barring the cooperative reduce sediments in overland runoff by 98 percent, leading the industry lobbying effort. The group said reoresentative Owen Drev .• because of its criminal conviction in September of according to results from a cooperative two-year giving illegal gifts to former secretary Mike Espy. study by ARSand Colorado State University. The Canada~ tariffs upheld Overwhelming support for renewable energy USDA said the ban retroactively took effect Oct. 4, the day it was proposed. Sun-Diamond has 30 days to appeal the ban and USDA said it could be scientists used an irrigation boom to simulate rainfalI over two sites along Sheep Creek in Colorado's Roosevelt National Forest. They discovered stubble A n international trade dispute panel issued its final ruling, upholding Canada's tariffs on U.S. poultry, eggs, milk and other dairy products. A post-election survey on the environment and energy found that voters overwhelmingly lifted early if the company proves it has amended as short as 1 inch could slow water flow and trap The decision was not a surprise, because the panel support federal programs to promote the increased the way it does business .• sediment as effectively as stubble 6 inches tall.. had issued a similar preliminary ruling. The deci- production and use of ren~able energy generally, sion was greeted by the Clinton administration with and the ethanol tax incentive, specifically, according Kleckner calls for China to be held to WTO standards displeasure. to the Ethanol Report, a newsletter published by A t a meeting of the World Trade Organization, AFBF President Dean Kleckner told a news conference that market access and sanitary and tamination. Scientific evidence shows the fungus is harmless. Each year, China's ban blocks the sale of 500,000 tons of wheat worth millions of dollars. "We are deeply disappointed that the panel supported Canada's view that it could apply ex- tremely high tariff rates to imports of dairy, poultry, the Renewable Fuels Association. According to the poll released by the Sustain- able Energy Coalition, American voters strongly phytosanitary measures should be key to China's In October, China banned the import of poul- egg, barley and margarine products from the United favor federal research funding and tax incentives for entry into the wro. try from 10 states, fearing that the birds were con- States," said Agriculture Secretary Dan Glickman renewable energy efficiency over fossil fuels and '/\11 sorts of mischief can come about through taminated with highly pathogenic avian influenza. and Acting U.S. Trade Representative Charlene nuclear power. phytosanitary concerns that are not realIy sdentific," That virus had not been found in the United States Barshefsky. For a third straight year, voters give the high- Kleckner said. "They're disguised and we certainly since 1984. The panel ruled that Canada's use of high est priority for funding for the Energy Depanment's have to resolve that. I think Ithe Chinese have Igot a Kleckner said the Chinese have yet to prove tariff rates - in excess of 100 percent - is accept- research budget to renewable energy and energy way to go yet prior to admittance to the wro." Other they are ready to join the wro. "Not every issue able under World Trade Organization guidelines. efficiency. Nearly a third of respondents believe farm lobbyists at the meeting supported this view. needs to be cut and dried, but it needs to be much The panel said Canada's contention, that WTO rules nuclear power is the energy source that should be For years, China has refused to buy wheat better than it is today or in my view they shouldn't supersede the NAFTAarrangement to eliminate all subject to budget cuts, followed by fossil fuels .• from the U.S. Pacific Northwest because of fears of come in," he said .• tariffs between the two nations, is acceptable .• tilletia controversa kuhn (TCK) smut fungus con- Washtenaw County to host farmland Restaurants bilked by environmental1agency' preservation meeting A n official letter from the U.S. Environmental Protection Enforcement Agency asked restau- Kentron Refrigeration Services, Inc., in Avondale Estates. T he first in a series of public educational forums on preserving farmland and open space in Washtenaw County will be held Monday, Feb. 10, at McGinnis, a fourth generation farmer who has been instrumental in the development of agricultural zoning and purchase of development rights rant owners across the nation to pay a $189 fee to register grease traps and other kitchen equipment to meet environmental regulations. Restaurants, A number of restauranteurs paid the invoices, believing they were legitimate. Federal agents s~rl ,..1- the invoices were sent under several names, and all . the Washtenaw County Farm Council Grounds, at programs in Baltimore, Md. from large chains to mom-and-pop operations, resembled state and federal agencies. One invoice 7:30 p.m. The forum is sponsored by the Wash- Michigan Farm Bureau Assodate Legislative received the lener. warned that failure to register the kitchen equip- tenaw County Agricultural Land and Open Space Counsel Scott Everett encourages county Farm Bu- There's a huge problem with the letter: The ment ~uld~sult in a $S,OOO-per-dayfine. Task Force, American Farmland Trust, the Wash- reaus and members interested in the issue of farm- U.S. Environmental Protection Enforcement Agency This isn't the first time Kentron has had prob- tenaw County Farm Bureau, and the Coalition to land preservation to attend this program to learn does not exist. Federal agents have seized the lems with the law. In October, the Georgia Governor's Protect Farmland and Open Space in Washtenaw more about sponsoring similar programs in their records of an Avondale Estates, Ga., business. All Office of Consumer Affairs fined it $20,000 for using County. counties. For more information, contact the Wash- letters sent to restaurants had a return address to the Georgia state seal on some of its invoices .• The forum, which is free and open to the tenaw County Farm Bureau at (313) 663-3141 .• public, will include comments from Wayne Protein triggers cows immune response I Crow's to offer Roundup Ready beans Financial analysts wave caution flag N eutrophils - a type of white blood cell- go into action against dairy cows' mastitis infec- tions when they get the signal from a naturally directs neutrophils into the mammary gland and how much protein is needed for an effective neu- trophil response. S t.louis-based Monsanto Co. has issued a com- mercial agreement to Crow's Hybrid Corn Co. to market Roundup Ready soybeans. A recent decline in grain prices should serve as a warning to producers becoming too excited over farmland prices, a financial analyst told the Illi- produced protein. The protein was isolated and purified in stud- ies in 1994-95 by Max). Paape of the Agricultural Mastitis, an infection of the cows' udder, costs U.S. dairy farmers $2 billion annually in treatment and lost milk production. When an udder becomes "We are extremely pleased to add Roundup nois Farm Bureau recently. The latest quarterly sur- Research Service Immunology and Disease Resis- infected, neutrophils rush to attack the invading Ready soybeans to our product line," said Doug vey by the Federal Reserve Bank of Chicago shows tance Laboratory at Beltsville, Md., and visiting bacteria. Until now, researchers had little informa- Longest, Crow's vice president of marketing. "This Midwestern farm values strengthened considerably scientist Pascal Rainard of the Institut National de la tion on what triggered the neutrophils' charge. The value-added product already has great acceptance. It this summer. Illinois led all Corn Belt states with a 14 Recherches Agronomique, Nouzilly, France. protein might someday be used in cows to protect will provide our customers with additional flexibility percent climb from October 1995. Real estate bro- The next step: pinpointing how the protein against mastitis-causing bacteria .• and planting options in their soybean program." kers reported a strong land market through most of Monsanto has also issued a testing agreement 1996. Analysts warn, however, those positive num- to Crow's for the development of corn hybrids with bers could change. The recent plunge in commodity AGRO-CULTURE UIII',. tolerance to Roundup herbicide .• prices could signal a shift in farmland returns .• ORGANIZATIONAL BRIEFS Puts the Go in Grow! Sue Stuever Battel joins Michigan Farm Bureau FERTI LIZ ERS S ue Stuever Battel has joined Michigan Farm Bureau as county information specialist. Her main responsiblities agriculture and natural resources communications. While a student at MSU, Sue worked as an intern at the Farm Bureau Center, writing for Michigan Farm Call for your FREE CATALOG AND RESEARCH BOOKLET "96" include working with News and Rural Living. She has editorial exper- county Information Committees and publish- ience with other publications, as well, including Ohio's Country Journal and Michigan Florist. 800.678.9029 ing county newsletters. Sue came to Michigan Farm Bureau from Sue is a graduate of Michigan State University where she earned her degree in Gibbs & Soell, Inc., an agricultural public relations agency in Hoffman Estates, 111. A native of St. Clair County, Sue grew up on her family's dairy and cash crop farm near Capac.. The Michigan Fa"" NrNS (ISSN:0743-9962) Is published twice per month except In the months of November. Decemb4tr. ,, Best Seed Land Cost \ \ ,W) (~ I Machinery / / / Best Retum AGRO.CULTURE June .nd July when only one Issue Is printed. as • service to regular members. by Mlchig.n F.rm Bure.u. 7373 West s.glnaw Highw.y. lansing. MlchigM 48917. Member subscription price of $1.50 Is included in annu.l dues of Michigan Fa"" Bure.u regular membeR. Addltion.1 subscription fees required for mailing MichigMt Farm News to nonmembers and outside the continental U.s.A. Periodical posUge ~id ~ Lansing. Mlchlgan..nd offices. addltlon.1 m.lIlng Best Weed Control ,, \ \ I I / / / U~!!!. 1At1 .... to the editor .nd statMVkle news articles should be sent to: Editor. Michipn Farm N~ Post OffIce Box / / J096O. lansing. Michigan 4Ito9-I46O. POSTMASTER - Send address changes to: MIchIgM Farm Bureau. Post Office / Box 30960. unsJnt, Michigan 4190l-I46O. Editorial: Dennis RuUt. Editor _ IutInett "'Mger, Thomas Nugen1. Associate Editor. / Design and Production: Sue StueVer aau.L Officers: President. Jack Laurie. Cau City: Vice President. WayM Wood. M.rtette; Third Member. Jan Vosburg. Olmax: Agro-Culture Administrative DI~ Owck Burbtt; TrHSU ..... and Chief FiMndaI Officer. Tom Partttt; SecNtafy, David Vanct .... aagen. D1~ Dlstrkt 1. Jim MII* Coloma: DIstrict 2. IJaIne VanSickle. Manhall; District 3. Michael fusilier. Manchester, Liquid Fertilizers Dfstrict 4. Tom Guthn.. Oefton; Dlstrkt S. Alan Gamer. Mason; District 6. Wayne Wood. ... rJette; DIstrict 7. Rick Johnson. P.O. Box 150 Leroy, Distrkt .. Don Sutto. Saginaw: District 9. Joshua Wunsch. Traw .... CIty. District 10. Margaret Kartes. West BI'MKh; Distritt 11.1Iobert WahmhOff.Ianiga. At .... ,.: Jack Laurie. Cass City, Faye Aam. 5nowr, ... Vosburg. Qimax; Judy St. Johns, MI48879 Emmons. SherIdan. PIomotIon and Educ.&n. MerlaM KeNth. Decbrvillr. Young Farmers. Jeff Homing. MMchester. fim~~U!l~ January 30, 7997 Capitol For more information on legislative topics in the and grazing, breeding and grazing of cervidae, pheasants and other game animals, bees and bee products, mushrooms, aquaculture and other simi- Revision of Uniform Condemnation Procedures This law amends the Uniform Condemnation CDr,ae., .. ~ .' . Michigan Farm News, call 800-292-2680. lar uses and activities. It also clarifies that the local units of government shall not impose special assess- ments for sanitary sewer, water, lights or nonfarm Act to require the Michigan Department of Trans- portation to pay for the entire parcel if the remain- der is adversely affected by the purchase of a por- drainage unless the land, building or structure actu- tion of it. Among other things, the law requires that Farm Bureau legislative ally uses the special assessment. The law allows for a one-time-only reduction of a long-term contraa to seven additional years. It also reduces the minimum the landowner receive, within 30 days, all the mon- ey currently deposited in escrow when there is a court dispute over just compensation. Previously, accomplishments in 1996 length of a renewal contract to seven years. Tourist-Oriented Diredional Signs the landowner had to wait until the title was trans- ferred or until the time of possession by MOOT to This law establishes a Tourist-Oriented Direc- receive the money deposited in escrow. D uring 1996, Farm Bureau was involved in promoting the passage of several pieces of tional Sign (TO OS) program, which allows Purchase of Development Rights legislation in both Washington and lansing. The following is an update on some of (Ourist-oriented activities in non-urban areas to use This law allows townships, counties or munici- the issues for which favorable legislation was passed during 1996. highway signs to attract tourists. palities to develop and conduct a purchase of devel- Expansion of Bed and Breakfast opment rights program at a local level. Land eligible National issues Line Item Veto Definition for the program includes both agricultural and non- Delaney Reform Une item veto allows the president to veto Passage of this law allows a single-family home agricultural land. The non-agricultural land must be - Congress passed and President Clinton signed portions of appropriations or tax bills within 10 days with 10 or fewer sleeping rooms, including the adjacent to agricultural land that has had develop- into law the Food Quality Protection Act. The act of enactment. This should help reduce the amount room occupied by the innkeeper, (0 be used as a ment rights purchased, and the parcels must share addresses many issues of great importance to Michi- of pork barrel legislation that has occurred in the bed and breakfast with an exemption from regula- a common property line. gan agriculture, such as: past. tion as a "food service establishment." In addition, Water Use Reporting • Safety Standard. The act replaces the anti- Health Care the law allows these establishments to serve meals Legislation was passed and signed into law quated "zero tolerance" Delaney standard with a The president signed the Health Coverage other than breakfast. that included the exemption of agriculture from a health-based "safe" standard for pesticide resi- AvailabilityAct during 1996. The Farm Bureau-sup- Transportation Exemption $50 user fee. Farmers utilizing 100,000 gallons or dues. ported aa increases the self-employed health insur- This law amends the Michigan Vehicle Code (0 more of water per day for agricultural production • Benefits Consideration. Tolerances could be ance deduction to 80 percent by 2006, allows small include that anyone operating a farm-licensed truck will still be required to report their usage but they exceeded to avoid a significant disruption in businesses to set up medical savings accounts and or implement of husbandry that transports sand, will not be required to pay a $50 user fee. domestic production of an adequate, wholesome allows individuals to withdraw funds from 401(1<) gravel and dirt in the normal operation of a farm Increase In Houn of Employment of and economical food supply or if the pesticide plans and Individual Retirement Accounts to pay for will be exempt from the requirement (0 cover/tie Youth protects consumers from a greater health risk. long-term care insurance. down such loads while in transport. A law was passed that expands the hours a • National Uniformity. The act establishes a State issues State-Mandated Territories minor, 16 years of age or older, may be employed in national uniformity for pesticide residues. This law allows insurance companies to deter- farming operations involved in the production of Milk Ad Amendment • Minor Use Pesticide. It includes new incen- mine au(O rates based on each community's experi- seed or in agricultural processing. The production The Milk Act was amended to provide tives along with streamlined procedures for ence rather than state-mandated territories, thus of seed includes farming activities and research additional security i:CI milk producers against non- so-called "minor crop" chemicals, which im- eliminating state-mandated rural subsidization of such as plant derasseling, hand-pollination, roguing, payment for milk delivered to milk plants. Authority proves availability of chemicals essential to fruit, urban areas and good drivers subsidizing bad drivers. hoeing and any other similar farming activities re- is strengthened for the Michigan Department of vegetable and horticultural growers. This was a Environmental Audits quired for seed production. This will expand the Agriculture to respond in a timely manner in the major victory for Michigan agriculture. Farm This law allows companiestfarrns that have a opportunities for employment of young people in event of substantial erosion of the financial security Bureau's efforts to gain the Michigan congres- historical environmental problem to voluntarily agricultural operations .• of a milk plant. sional delegation's acceptance of this legislation come forward to develop a privileged environmen- Grain Dealers Ad was critical in order to pave the way for passage tal evaluation. Once the evaluation is completed The Grain Dealers Act was amended to ex- of Delaney reform. and a cleanup plan of action is developed, the indi- ~ clude farmers who transport grain, incidental to Immigration Reform vidual is exempt from any local, state or federal This law creates three voluntary pilot pro- their farming operation, from obtaining a grain environmental law. Employer/employee vs. grams to test a telephonic and electronic employ- dealers license, which requires posting financial Private Property Preservation Ad landlord tenant security and annual audits. ment eligibility confirmation process. The efforts of these test programs are to streamline and improve the process for employers. The new law reduces the Maple Syrup Standards This law establishes a standard for real maple This law requires the attorney general to de- velop guidelines to be considered by state govern- ment entities prior to implementation of a regula- S en. George McManus submitted a five-bill package to the Legislative Service Bureau Jan. 2 concerning employee rent-free housing. Sen. syrup, that protects consumers from individuals current 29 different documents that can be used to tion or decision on a permit that may cause a taking McManus received confirmation of the request for mixing sugar and water with maple syrup flavoring prove an employee's eligibility to work to less than of private property. these five bills Jan. 9 and the drafting of the bills is and selling the product as real maple syrup. underway. The laws Farm Bureau wishes to have 10, thus reducing the confusion over the wide vari- Amendments to P.A.232 Wood Ash ety of documentation. Employers who fail to com- This law amends PA 232 to allow additional amended include the Public Health Code, the Re- This act clarifies that wood ashes from burn- ply with technical or procedural requirements in commodities to organize under P.A. 232, including vised Judicature Act of 1961, Landlord Tenant Act, ing wood (except treated lumber and other byprod- Truth in Renting Aa and the Michigan Consumer filling out the 1-9employment verification form wi1\ nursery stock and aquaculture. It allows soybeans, ucts) is not classified as solid waste, thus allowing Protection Act. The language will be the same as the not be held liable unless the INS first explains the organized under a national checkoff, (0 waive the the wood ash, rich in potash, to be applied to land. bills that died in the final session of the last legisla- error and the employer has been provided 10 work- state automatic five-year referendum ifa national Farmland Preservation - P.A. 116 ing days to correct the error. Farm Bureau worked periodic review is provided for. It also allows for ture. We will ask for amendments after the bills have Numerous changes were made to improve been introduced to clarify the eviaion process. hard for the passage of this reform. funds to be borrowed by commodity programs with PA116's ability to preserve farmland. Some of the Sponsors and co-sponsors will not be available until Animal Drug Availability Ad the approval of the director of the Department of changes were to clarify and update the definition of the bills are introduced. This act makes changes in Food and Drug Ad- Agriculture with stria limits on the amount of funds agriculture to include poultry and poultry products, ministration procedures to prOvide the agency with borrowed and payback provisions. MFB Contact: Howard Kelly,ext. 2044.• captive cervidae, berries, herbs, flowers, seeds and the flexibility to approve more products that are other agricultural products. The law defines special- safe and effective for various types of animals. ty farms to include greenhouses, equine breeding Fjr~\~~ Wiretap reform S enate Bill986 (1995-96) was sponsored by Sen . Cisky in the previous Legislature. It would have allowed for some wiretapping in certain cir- • The state attorney general would authorize the wire tap. Farm Bureau Policy: We support legislation Michigan Farm Bureau cumstances and prescribed procedures, penalties allowing police officers expanded wiretapping au- announces the and remedies. The bill passed the Senate on a vote thority under the following conditions: of 25 to 7. The bill will be introduced again in the • Authorized wiretaps are for violations involving current session of the Legislature. Farm Bureau controlled substances only. 1997 Statevvide supports this effort. • Approved by the attorney general. Lansing Major provisions of the bill: • The bill would permit wiretapping of drug deal- • The Michigan State Police maintain a directory of all applications for wiretaps . Legislative ers by any electronic means. • Any legislation enacting these provisions must also contain a three-year sunset provision . • The bill would sunset Oct. 1,2000. Seminar MFB Contact: Howard Kelly, ext. 2044.• Wednesday, February 19, 1997 Abraham co-sponsors bill to help farmers deal 11:00 AM - 6:30 PM with Mother Nature and IRS at the Lansing Center U S. Sen. Spencer Abraham (R-Michigan) today ture," Abraham said. "In agriculture, poor growing __ announced he was co-sponsoring legislation seasons are inevitable. Probably every farmer has which wi\1repeal a recent IRS ruling and permit had a crop devastated by harsh weather or been Registration starts at 11:00 AM with lunch at 12:00. There will be four farmers to continue to defer tax liability as a way to challenged to feed their livestock because of result- breakout sessions led by the Public deal with the ups and downs in business presented ing shortages. By deferring tax liability on deferred Affairs Division staff, the first beginning by mother nature. The legislation was introduced payment contracts, farmers are better able to pre- at 1:45 and the last session ending at today by Sen. Charles Grassley (R-Iowa), who is the pare for these difficult times." 4:30 PM. At 4:30, Farm Bureau members MICHIGAN will have the opportunity to greet their legislators and discuss current issues at bill's main sponsor. The legislation will allow farmers to continue Deferred payment contracts allow fanners to receive a portion of payment on a crop in the next FARM BlJREAlJ the legislative reception. to defer tax liability through the use of deferred year. In addition to the deferring payment, farmers payment contracts. "Uke other business, farmers also defer their resulting tax liability to the following are subject to the same peaks and valleys in con- year. Deferring payments and tax liabilities is a limit- sumer demand that govern product pricing and ed form of income averaging that allows individuals February 19 • 11AM - 6:30PM income. Unlike other businesses, however, farmers are also subject to the uncertainties of mother na- to cope with seasonal difficulties .• 1~'~I~~r~ January 30, 1997 1997 Michigan farm income outlook ohn (Jake) Ferris cent under trend. Dry bean and hay yields were should decline slightly from 1996 (Table 2). program, which is in effect from 1996 to 2002. Con- f racking and forecasting Michigan farm in- come is a panicularly complex task because of the large number of livestock and crop enterprises and wide swings in production and price. Converting crop income to a calendar year about 10 percent below trend and sugarbeet yields were at the lows of 1991, the lowest since the 196Os.Acreage harvested on sugarbeets was only 85 percent of plantings - also historically low. Fonunately, prices were generally higher on While prices on 1997 crops are expected to average somewhat lower than on the 1996 crops, the levels should be high enough to encourage farmers to maintain acreages or even increase acre- ages in some crops. An exception is wheat USDA tract payments on the 1996 corn crop amounted to $54.3 million according to Michigan's Farm Service Agency. Payments on wheat were about $22 million. Payments will increase to more than $100 million on the 1997 corn crop but decline to about $15 presents an additional challenge beclUse farmers crops sold in 1996, enough to increase gross in. reported that seedings in the fall of 1996 were down million on wheat change how they allocate sales from year to year. come from corn, soybeans and hay (Table 1). Fruit 17 percent from the previous year. Even so, cash Some of the 1997 corn and wheat payments Estimates for calendar year 1996 and forecasts for prices were also higher - enough to increase gross receipts from nearly every 1997 field crop sold in may be shifted to 1996, depending on how many 1997 are based on traditional sales patterns. As is from tart cherries - but nor enough to offset a 1997 (including wheat) should be substantially farmers elected this advance payment option avail- necessary, normal weather is assumed in forecast- much smaller apple crop. Returns from wheat and higher than in 1996, a trend that should carry over able by Dec. 15, 1996. Payments under the Conser- ing production of 1997 crops. sugarbeets were also down noriceably. into the first half of 1998. For the first half of 1997, vation Reserve Program will remain at about $19 1996 In review In total, gross receipts from farm marketings however, gross from 1996 crops will be down million. Payments in 1997 under the new Environ- The variability in sales, prices and gross income of crops in 1996 exceeded $2.3 billion, up nearly enough ro reduce toral receipts for the year by over mental Quality Incentive Program (EQIP) will be' from year to year is illustrated in Table 1,which $140 million from 1995 (Table 2). Uvestock prod- $100 million (Table 2). similar to the ACP program it replaces - about $3 shows percent changes from 1995 to 1996. Crop ucts grossed about S1.5 billion, more than $100 As a perspective on the impact of unfavorable million .• sales for 1996 represent a combination of 1995 and million over the year before. Government payments weather last year on 1996 and 1997 incomes, losses 1996 crops. Milk sales in 1996 were down slightly to farmers declined to about $100 million, primarily from corn, soybeans, wheat and sugarbeets alone from 1995, but with tight U.S. supplies, Michigan due to a reduction in disaster outlays (Table 3). amounted to about $170 million in 1996 and will dairy farmers averaged $15 per hundredweight Total cash income in 1996, including farm- exceed $100 million in 1997. This is based on apply- (cwt.) in 1996, 15 percent above 1995, increasing related income, was about $4 billion, more than ing trend yields on each crop and assuming the gross dairy farm income 14 percent In the cattle $200 million above 1995. However, cash expenses normal relationship between planted and harvested in miHion dollars sector, sales and prices on cattle and calves were were up usa million, leaving net cash income just acreage (which affected 1996 wheat and sugarbeet Enterprise 1995 1996 down in 1996, resulting in a gross income decline of under $850 million, $60 million above 1995 (Table crops). Uvestock nearly 10 percent. Higher hog prices, on the orher 3). Higher feed costs and increased expenses for Nearly all the base acreages, almost 96 per- Dairy hand, more than offset a reduction in hog sales to the expanded plantings were major reasons total cent of corn and wheat are in the new farm Cattle and calves boost the gross by 12 percent Similarly, gross in- Hogs cash expenses increased to 13.1 to $3.2 billion. Eggs come to egg producers increased substantially as 1997 predldions higher prices more than offset a reduction in sales. .,..",.1- OuInf1es In Sales, PrkH Other The outlook for Michigan farm income in IIIHI GIvss Income from MII/Ot' Total 1,324 Quantity sold of every major field crop de- calendar year 1997 is mixed. Gross receipts will LIvestock IIftd FJ.1d Ovp Ent«prlses Field Crops and Vegetables clined in 1996, primarily due to poor yields on 1996 decline in the first half of 1997, since milk prices will In Michigan., 1995-96 Otlfflldltr y..,., Corn 412 crops. A cool, wet spring delayed plantings and dry be lower and the quantities of 1996 crops to be sold hrcent Change Soybeans 338 Quantity Gross weather also hurt crop development. Sales of the in 1997 will bring lower prices than in the first half Enterprise Sold Price Income Wheat 138 Dry beans 130 1995 corn crop in 1996 were also down from the of 1996. With normal weather, gross income from Uvestock Sugarbeets 112 previous year; for orher 1995 crops, sales in 1996 1997 crops sold in 1997 should be substantially Dairy -1 +15 +14 Potatoes 91 were about the same or higher. Fruit crops were above the last part of 1996. Cattle and calves -2 -7 -9 Hay 74, ., also substantially smaller in 1996 relative to 1995. Adding it up, however, gross cash income may Hogs -13 +28 +12 Vegetables 204 Eggs -5 +37 +31 Other 15 . Acres planted for harvest in 1996 shifted from decline by about $150 million in 1997, with only Total 1,514 Crops dry beans, hay, sugarbeets and potatoes to corn, small reductions in expenses, (due primarily to fruit Corn .7 +36 +29 soybeans and wheat Total planted acreage of these lower feed costs) leaving net cash income at about Soybeans -10 +20 +8 < Fruit 204 . crops was actually 4.3 percent above 1995. Corn $750 million (Table 3). The net would be down Wheat -25 NC -25 Other and soybean acreage was up 10 percent as the new about $100 million from 1996. Dry beans -8 +3 -5 Other 479 farm program eliminated set-asides and allowed Increased milk production in 1997 should Sugarbeets -23 +9 -16 Total Crops 2,197 . farmers more flexibility in allocating acreage. Yields, offset part of the decline expected in prices (Table Potatoes -6 -1 -7 Hay -10 +25 +12 however, plummeted. Corn yields were 15 percent 2). While hog and cattle sales will likely continue Based on data from the Michigan Agricultural Statistics below trend and soybean yields were 25 percent declining in 1997, higher prices should increase Service. Michigan Department of Agriculture. below trend. gross receipts slightly. Little change is expected in About 10 percent of the acres planted to egg receipts as production increases and prices wheat were not harvested and yields were 25 per- decline. Gross receipts from livestock in 1997 Tab,. 3 - CII_ Fatm IncomtIln MId'I~ f991-97 (Million dollars) 1991 1992 1993 1994 1995 1996- Gross cash income Farm marketings Crops 1,950 1,902 1,968 1,992 2,197 2,334 . "2,198 MFiiNJ Serving Michigan livestock 1,288 1,310 1,371 1,389 1,324 1,448 1,406 CCf Gov't payments 124 142 241 102 151 103 147 farm families is Farm-related income Total 137 3,498 108 3,462 124 3,704 119 3,602 106 3,778 110 3,995 110 3,861 RADIO NETWORK our only business Cash ellpenses 2,708 2,685 2,901 3,059 2,996 3,155 3,114 Net cash income S ince its beginning in 1971, Michigan Farm Radio Network's only objective has been to serve Michigan's farm families. This dedication to serve agriculture is shared by 27 local radio stations ~ m -Estimated for 1996 and forecast for 1997. m ~ Source: Michigan Agricultural Statistics Service, Michigan Department ~ m ~ m of Agriculture and Economic Research ServIce. USDA. for 1991-95. in Michigan. Through these stations, Michigan Farm Radio Network provides the latest in market analysis, weather and news to Farm Bureau members daily on the following stations: Increase Yield Potential with ACA@Plus Station City Frequency Morning Report Noon Report WABJ Adrian 1490 5:45 am 11:05-12:00 pm WATZ Alpena 1450 5:30 am 11:30 am WTKA Ann Arbor 1050 6:05 am 12:00-1:00 pm WLEW Bad Axe 1340 6:30 am 12:50 pm .WHFB Benton Harbor 1060 12:15pm WKJF Cadillac 1370 5:45 am 11:10am WKYO Caro 1360 6:15 am 12:10-1:00 pm WTVB Coldwater 1590 5:45 am 12:00-1:00 pm WDOW Dowagiac 1440 6:05 am 12:15 pm WGHN AM Grand Haven 1370 5:45 am 12:15pm WGHN FM Grand Haven 92.1 5:45 am 12:15pm WPLB Greenville 1380 6:15 am 11:50 am WBCH Hastings 1220 6:15 am 12:30 pm WCSR Hillsdale 1340 6:45 am 12:45 pm WHTC Holland 1450 12:15 pm WION Ionia 1430 6:45 am 12:30-1:00 pm WKZO Kalamazoo 590 5:00-6:00 am 12:00-1:00 pm WPLB FM Lakeview 106.3 6:15 am 12:15 pm WOAP Owosso '1080 7:15 am 12:40 pm WHAK Rogers City 960 12:15pm WSJ St. Johns 1580 6:15 am 12:05-1:05 pm For more information please contact your local WMLM St. Louis 1520 6:05 am 12:20 pm WSGW Saginaw 790 5:55 am 11:30-12:30 pm ACA(!) dealer or call: Marc Hooper WMIC Sandusky 660 6:15 am 12:45 pm Grower Service Corporation WKJC FM Tawas City 104.7 12:40 pm A United Agri Products Company WLKM Three Rivers 1510 5:45 am 12:15 pm WTCM Traverse City 580 5:45 am 11:10am Lansing, Michigan 517-333-8788 Each day we light the way for you your productivity and profitability. and other farmers across the state - We're proud to serve 20,000 farms- providing the power that keeps you in more farms than any other utility in business. But our commitment to you the state - and we're committed to doesn't stop there. helping you succeed every step of the We have a 24-hour, toll-free number way. to answer your energy service ques- tions. Plus, we'v.e established a dedi- For stray voltage questions cated, toll-free number so we can call1-BOO-252-VDLT respond to your questions about stray voltage. And, with 39 Customer For other service questions Service Centers state-wide, we're call1-BOO-477-5050 ready to serve you. We're also working with key agricul- tural organizations like Michigan State University Extension and the Michigan FFA on issues that impact 1~'JI[tt:~~I~'I~ January 30, 1997 Market, WHEAT M ichigan's 1996 wheat yield of 38 bushels per Gull'•• k acre almost made the corn yield look good. This was down from 60 bushels per acre in 1995 and 53 bushels per acre in 1994. While wheat prices were quite good last summer, they were not good enough to make up for low yields and discounts for quality. The U.S. situation for the 1996-97 wheat crop is summed up in column 2 of Table 2. Supply is just below the previous year's level with rotal production up, but beginning stocks down. Domestic use has been running fairlystrong up to this point, with feed use up last summer, and with high corn prices and by Dr. Jim Hilker, food use making gains as well. However, exports are Department of a whole different srory. World wheat production was Agricultural Econom- up sharply for the rest of the world. This means U.S. ics, Michigan State exports will be down sharply as shown. University The bottom line is that ending stocks will grow. The $4.20 weighted average annual price projection seems high given the 20.7 percent CORN" srocks-to-use ratio. This is due to a lot of wheat being priced before the size of the rest of the hen we look at expected corn prices for spring, the country ended up with the trend yield. plant the number of corn acres they wanted ro last W the first eight months of 1997, we see an above average price year. But when we look back at On the demand picture, there is both a bright and a dark side. On the bright side, it appears 1996- year before the wet spring pushed a couple million acres ro soybeans or sorghum. And, as shown below world's wheat crop was known. The drop-off in prices we saw by fall and, ro some extent, the late harvest of soybeans, lowered 1995-96 corn prices, $2.65 doesn't seem very high, 97 feed use will bounce back strongly despite only a in column 3 oft able 1, the trend yield for 1997 is winter wheat acres seeded for 1997 harvest by al- especially given Michigan's 1996 average com yield few more animal units. It also appears ethanol pro- 129 bushels per acre; the record U.S. yield is 138.6. most 3.8 million acres, or 7 percent. This trend was of 94 bushels per acre, over 20 bushels below trend. duction will return ro near 1994-95 levels. The dark This would give us a corn crop of nearly 9.7 billion seen to even a greater extent in Michigan as 120,000 And the 1996 corn harvest accounts for much of the side is the rest of the world had good feed grain bushels, which, added ro the expected beginning fewer acres, 17 percent less than expected, were corn that will be sold in 1997. crops and exports will be down sharply. The other stocks, would give us a total supply nearly a billion planted this past fall. What this means for the U.S. Bur, of course, 1997 corn sales also include part part of the dark side is hog numbers will be lower bushels higher than this year. wheat supply/demand picture is shown in Table 2, of the 1996 corn crop. If the country, as a whole, than they would have been if not for extremely high Feed use should grow marginally as hog num- column 3. achieves a trend yield, it is likely that we will see corn prices last year. bers will likely increase as we go into 1998, and The 1997-98 wheat planted estimate uses the 1997-98 corn prices average around $2.35, which was As shown at the bottom of column 2, ending cattle numbers will decrease as the past two years' actual 1997 winter wheat seedings and assumes the the five-year average before the 1995-96 corn crop. srocks are expected ro grow as demand growth is disastrous calf prices will cut the 1997 calf crop. same amount of spring wheat acres as last year. The Hopefully, we will see a good 1997 corn yield in Mich- not expected ro keep up with the extra supply. Expectations are that with corn prices back down to number of acres harvested should not be down as igan and thank goodness we had a good crop ro sell Ending stocks as a percent of use is projected ro be a longer-term average, food, seed and industrial use sharply as the planted acres number because an at the high 1995-96 crop year price. 10.9 percent. While this number is not burdensome, will again begin to grow with ethanol leading the average abandonment and grazed number of9.5 The Supply /Demand Balance Sheet for com, it is sufficient and should give us an average weight- way. The export projection shown assumes an aver- million acres is used versus last year's 12.7 million shown below in Table 1,summarizes the expeaed ed corn price of about $2.65 for the 1996-97 market- age world feed grain crop and continued worldwide acres. With a trend yield of 38 bushels an acre, the fundamentals for the 1996-97crop, which runs ingyear. economic growth. total U.S. supply is expected ro be up due to a com- through Aug. 31, and the 1997-98 crop year, which The next question is, what are the 1997-98ex- The above scenario shows how quickly the bination of larger carry-in and higher production. begins Sept. 1. As shown, the supply available for the peaations? Wewilldiscuss the most likelyscenario huge agricultural resources we have in the United Wheat use is expected to pick up in the 1997- 1996-97 marketing year is significantly above the previ- here, but given 1996-97ending stocks are merely ade- States can recover from a short situation. Ending 98 crop year in total as exports should make some ous year as the increase in acres and yield more than quate, there is significant room for movement in both srocks are expected ro grow and an ending stocks- gains assuming a normal rest -of-the-world crop. made up for the lower beginning stocks. It is some- directions depending mostly on the 1997 com yield. to-use ratio of 15.3 Rercent indicates an average However, a likely decrease in feeding this next sum- what amazing to me that after all the problems last My expeCtations are that producers will try ro annual price of arou'nd $2.35. mer from the high levels last summer will temper growth. Overall, ending stocks are expected to grow and this means lower prices. COMMODITY PRICE TRENDS SOYBEANS . ' , P art of the story for soybeans in Michigan is the same as for corn and wheat - poor yields. Mer averaging 37.2 bushels per acre the previous five years, typically higher than the U.S. average, Michigan's 1996 soybean yield dropped to 28.5 bushels per acre. The U.S. yield tied for the second highest on record and was close to trend. The 1996-97 soybean supply/demand situation Corn • March' '97 is shown in Table 3. We came in with low enough ApT IIau Jun J Iv fl1g Sep Oct b lee Join stocks that even given the sharp increase in produc- tion, total supply was up only 54 million bushels, or &7.00 Z&4.00 2.4 percent. Total use is expected to not only grow by the ~c: extra supply, but then some, leaving even lower 73.00 III c: ending stocks. While we may not see prices as high iO:: 71.00 ... as periods of last year, the average weighted price ~ will likely be higher. Crushings will continue to be ~ &'J.OO ... Q: ~.2' high with equal to growing animal units. And, with a &7.00 c: lower oil content, more will need to be crushed to &0.00 &5.00 :.c: ei get the same amount of oil. Exports continue to be Llv. Cattl. • Feb. '97 5'J.00 &3.00 :; strong despite a good crop in South America last. a ApI' !\if Jlln Jlv AIag Sep Oct b lee Join year and a bigger crop projected for this year. As we look forward to the 1997-98 soybean COMMODITY SUPPLY/DEMAND BALANCE SHEETS marketing year, the picture stays bright. While 1 Table 1- Corn Table 2 - Wheat Table 3 - Soybeans expect prices to be down, they should stay over $6 Estimated Pro;eded HilkIf' EstimattcI ProjectId Hilker Estimated Pro;eded Hilker per bushel and may average close to S6.50 as shown (Million ac~) 1m-1'" 1996-1997 1997-1998 (Million acres) 1Mo1", 1996-1997 1997-1991 (Million ac~) 1m- 1996 1996-1997 1997-1991 in column 3 oft able 3. I expect soybean planted Acres set-aside/diverted 6.2 0.0 0.0 Acres set-aside & diverted 5.2 0.0 0.0 Acres planted 62.6 64.3 64.5 acres to be about the same as last year despite the Acres planted 71.2 79.5 81.5 Acres planted 69.2 75.6 71.8 Acres harvested 61.6 63.4 63.5 35.3 37.6 projected gain in corn acres. Between new CRP . Acres harvested 65.0 73.1 75.0 Acres harvested 61.0 63.1 62.3 BuJharvested acre 38.0 Bu./harvested acre 113.5 127.1 129.0 Bu./harvested acre 35.8 36.3 38.0 Stocks (million bushels) ground being released, fewer winter wheat acres, Stocks (million bushels) Stocks (million bushels) 335 183 155 some pick-up of acres in the South, and the expect- Beginning stocks Beginning stocks 1,558 426 959 Beginning stocks 507 376 469 Production 2, 176 2,383 2,413 ed good soybean prices, there will be enough acres Production 7,374 9,293 9,675 Production 2, 182 2,282 2,367 Imports 5 4 7 for both the soybeans and corn acreage projections. Imports 16 10 6 Imports 68 75 74 Total supply 2,516 2,570 2,575 And perhaps I am being too conservative. Total supply 8,948 9,729 10,640 Total supply 2,757 2,733 2,910 Use: The slight decrease in beginning stocks will be Use: Use: Crushings 1,370 1,400 1,410 offset by an increase in trend yield, and total supply Feed and residual 4,711 5,200 5,250 Food 884 910 920 Exports 851 900 850 is projected to be about the same. On the demand Food/seed & Ind. uses 1,583 1,670 1,780 Seed 104 104 105 Seed, feed & residuals 112 115 115 side, the picture is not expected to change a lot Total domestic 6,294 6,870 7,030 Feed 152 300 260 Total use 2,333 2,415 2,375 other than a big crop in South America this spring, Exports 2,228 1,900 2,200 Total domestic 1,140 1,314 1,285 Ending stocks 183 155 200 ~t which may cut into our exports next year. And, as 8,770 9,230 Exports 1,241 950 1,100 Ending stocks, % of use 7.8 6.4 8.4 Total use 8,522 :i shown, exports are still expected to be strong. 1,410 Regular loan rate $4.92 $4.97 $4.97 Ending stocks 426 959 Total use 2,381 2,264 2,385 E u.s. season average '=- While expected 1997-98 ending stocks may grow, Ending stocks, % of use 5.0 10.9 15.3 Ending stocks 376 469 525 "0 c Regular loan rate $1.89 $1.89 $1.89 Ending stocks, % of use 15.8 20.7 22.0 Farm price, $lbu. $6.77 $6.85 $6.50 III they are still expected to be relatively tight. u.S. season average Regular loan rate $2.58 $2.58 $2.58 ~ V\ Continued on page 7 :> Farm price, $lbu. $3.24 $2.65 $2.35 u.s. season average e:; Farm price, $lbu. $4.50 $4.20 $3.40 V\ 0 1~"I[~:I~~I~'I:t~~ January 30, 1991 AFBF delegates: Newag era requires new approaches D eliberating at their first annual meeting since enactment of the revolutionary 1996 farm bill, delegates to the American Farm Bureau Federation convention reaffirmed Addressing the dairy situation, the delegates said Farm Bureau will be active in the current effort to reform dairy marketing orders, stressing that the organization's Order Reform Working Group will environmental regula- tory compliance, the delegates made several recommendations. support for the law and said property rights, con- work with the industry on the problem. Earlier in They said they support serving the environment and new risk management the week, Agriculture Secretary Dan Glickman an. voluntary efforts in tools should be emphasized during the new era of nounced to the 8,200 Farm Bureau members in which any information farm policy. attendance that USDAwould go ahead with short- gathered about indi- Delegates said national farm policy "must term measures to shore up sliding dairy prices, vidual farms and sup- continue the focus of a consistent, long-term, actions Farm Bureau called for in November. plied to government market-oriented farm policy that will rely Turning to international trade, in particular agencies should re- substantially less on government and increasingly farm trade problems with China, the delegates said main confidential. more on the market." China should not be allowed to join the World Such efforts, they said, But to flourish in this new era, the delegates said, farmers and ranchers will need several re- Trade Organization unless that nation offers a spe. cific plan for eliminating its trade barriers and con- should be adminis- tered by state agencies .•• t:. forms, such as an increase in the exemption for forming to WTO rules. Addressing the federal estate taxes and a cut in the capital gains tax On domestic issues, the farmers and ranchers overall economy, the from the current 28 percent to 15 percent. addressed several aspects of conservation policy. delegates said more Michigan Farm Bureau President Jack Laurie, left, and American Farm Stressing the increased need in this new peri- They expressed concern about regulatory enforce- needs to be done in Bureau Federation President Dean Kleckner address delegates. od for producers to better manage the risks inher- ment, saying agency roles should be clarified. They the area of regulatory reform. They said Congress safety act. They said the Environmental Protection ent in agriculture, stemming from weather and said the Natural Resources Conservation Service should exercise its new authority to review regula- Agency, as it reviews pesticides under the new law, market swings, the delegates said new risk manage- should provide technical conservation assistance to tions and overturn bad ones, in accordance with should make its decisions based on actual use data ment tools should be developed to provide an alter- farmers and not act as an enforcement agency. legislation signed into law last year. and not worst-case scenarios .• native to crop insurance. On the issue of whole farm planning, a pro- The delegates voiced reservations about the posal that seeks to integrate farm management with implementation of another new law, the 1996 food Be a T.E.A.M. player: Deadlines unveiled for federal Conference serves dual purpose for all members Milk Market Order reform measures I your f Farm Bureau committee meetings could benefit from a lesson in teamwork, Project U S.dairy producers have until Feb. 10 to other public comment period through June 30. Recent price volatility was also a big issue with T.E.A.M. is for you. Partidpants of Project T.E.A.M- share their views on the initial proposal to Following the close of the public comment period, producers attending the AFBF workshop in Nash- Together Everyone Achieves More - will discover reduce the number of Federal Milk Mar- the agency plans to issue the final proposed rule, ville. In addition to suggestions that the price of team-building skills while addressing issues fadng ket Orders (FMMO) from the current 32 to 10, followed again by another 6O-day comment period. fluid milk be decoupled from the cheese market, today's agriculturalists Thursday, Feb. 27, at the according to Richard McKee, director of the U.S. McKee said the final FMMO and pricing rule there were also suggestions to move to a 12-month Mount Pleasant Comfort Inn. Department of Agriculture's Dairy Division, which would !hen be released in August 1998, followed by moving average to alleviate the wild price swings of Conference partidpants will learn how to oversees the order program. an industry referendum scheduled for September 30 percent in recent months. build team energy, plan as a team and find people In comments during a workshop at the Ameri- 1998. Each producer would vote on their respective McKee said the recent price drops were a who make a difference during sessions centered can Farm Bureau Federation annual meeting in order. Those orders that are approved would then surprise to everyone in the dairy industry, including around tough issues such as agricultural zoning, Nashville, Tenn., he encouraged the industry to play go into effect Jan. 1, 1999. USDA "I've never seen anything like it in my 25 animal welfare, private property rights. worker pro- an active role in the development of the new feder- The FMMOs, in place for more than 50 years, years of working with the dairy industry." he said. tection, food safety and consumer awareness. al orders released this past December. at one time numbered 82, requiring over 1,200 "I've heard a great deal in the last 90 days about lWo keynote speakers will address the team- "We're currently seeking input from the agri- employees. The number of FMMOs has now . moving to some kind of moving average." work topic. The director of the Michigan Depart- cultural groups and the industry about these dropped to just 32 with a total of 500 employees, Although still several months away, McKee ment of Agriculture, Dan Wyant, will speak on 'The proposals," McKee explained. "We're certainly not due primarily to order consolidation and automa- said a team of ag economists, headed up by Texas Winning Attitude for Today's Agriculture," and Mich- going to be defensive about a map - it's only a tion. McKee says he doesn't anticipate the labor A&M, has released a preliminary report comparing igan State University Women's Volleyball Coach starting point. We want to know if it's the right thing costs to be reduced significantly, even with just 10 eight different pricing formulas to replace the Basic Chuck Erbe will share his experiences with "Coach- for the industry." orders. "We've reduced employment and our costs Formula Pricing. Another study committee based ing Teams for Results." The comments McKee is seeking will be used considerably already, so savings won't be signifi- out of Cornell University is also conducting an anal- The event, sponsored by the state Promotion to make revisions to the FMMO reform proposal, cant," he said. ysis of what additional production classifications and Education Committee, is geared for anyone which must be presented to Congress by a mandat- The prospect of a California milk marketing would do to the dairy industry. interested in promoting agriculture while working ed April 1 deadline to avoid losing the ability to order is still unknown, McKee said. The 1996 farm McKee encourages producers wishing to com- asa team. collect FMMO assessments in order to administer bill includes provisions for that state's producers to ment on the new orders to submit opinions to: The conference costs $25 per person, which the existing Federal Milk Marketing Orders. establish their own order, if so desired, because of a USDAAMSDairy Division includes lunch and materials. The registration dead- Along with the new FMMO map, McKee said long-standing, state-level quota system. California Room 2968 South Building line is Feb. 10. For more information, contact Karen the new pricing structure to replace the current producers are scheduled to meet with McKee in Washington, D.C. 20090-3465 Stoneman at (BOO) 292-2680, ext. 3206 .• Basic Formula Pricing (BFP) mechanism and FMMO provisions would also be released, followed by an- February to discuss the establishment of that order. (202) 7204392 • r-------------, Project T.E.A.M. Registration Form prices last fall. Annual beef production is expected was due to small or negative returns, or the unwill- Feb. 21, Mount Pleasant Comfort Inn to be nearly the same as last year, but with an ever- ingness to make new investments at a later point in growing population, economic growth and a contin- their life-cyc1e,or because the return to selling their Name ued growth in exports, prices should edge up as feed grains was better or nearly as good as putting it suggested. This, along with lower feed prices, through hogs, varies by the operation. The large Address should lead to longer periods in the black for feed- operations continued to grow, but not as much as lots. However, this will lead to a bidding up of feed. the small ones decreased. City, State, ZIP er cattle prices, which will keep a lid on net returns. Overall, pork production is expected to be Continued from page 6 First-quarter beef production will be about the nearly the same in 1997 as 19%, and this points to a Phone CA'lTLE" ' same as last year and steer prices should average in very good year for hog producers in 1997. Feed the $64-66 range, but, as mentioned earlier, Michi- prices are down and hog prices are expected to County W hile 1997 probably won't be a great year for the cattle sector, it will certainly be better than 1996, which was a disaster for cow-calf produc- gan will probably continue to receive a $1-2 premi- um on many of our cattle. Beef production in the average $54-57 per cwt. for 1997. U.S. per capita production is expected to be down 1.7 pounds to 47.8 as population continues to increase slowly and $25 per person includes meals and materials, check payable to: second quarter is expected to be down 2 percent ers and also for feedlots other than the last quarter. exports continue to explode. Michigan Farm Bureau relative to 1996 and U.S. prices should average $63- The one slightly bright spot for Michigan is the 67, up from the poor $60.26 average for the same First-quarter pork production will be 4 per- Mall or fax reservation continuing premiums for many of our fed cattle period in 1996. cent below a year ago and therefore prices will aver- form by Feb. 3 to: versus the High Plains. This is due to both the type Third-quarter beef production should recover age $7-8 higher at $53-55 per cwt. Second-quarter Michigan Farm Bureau and condition of our cattle and the strong East 1-2 percent from last year's levels, and prices are production will be about the same as a year ago; Promotion and Education Coast demand versus Eastern Corn Belt cattle num- projected to be in the $64-69 arena. Fourth quarter this should allow prices to average between $54-58, P.O.Box 30960 bers. somewhat above a year ago. Third-quarter produc- Lansing, MI48909-8460 may be slightly lower than last year, which will once tion is expected to rebound and be 4 t05 percent Fax (517) 323-6541 Two poor years of calf prices following a again help prices stay in a range of $68-74. As we go break-even year will lead to a smaller 1997 calf crop. into 1998, I expect steer prices to average over $70. above 1996 with prices averaging $54-58, somewhat ')Whether you know it or not, you are a How much smaller will be reflected in the Cattle lower expectations than the $57.75 seen the year • VIP - a Very Important Partner. What i1lve1ltory Report released onJan. 31. Cow slaugh- before. Fourth-quarter production is projected to activity have you been involved in that made ter has been up for the past year. My expectations we f look at just hog prices in 1996, it was a very be off 1 to 2 percent from this past fall, which are for a 1 to 3 percent decrease in the size of the beef herd. This should allow calf prices this fall to I good year as prices averaged $53.45 per cwt., compared to 1995's $42.35. Of course, when we should keep prices in the same range, $54-57. Just like very low prices in 1994-95 cured the a difference for agriculture or taught one person about farming? Name the activity. make it back into the $70 range. If the cutback is on adjust the returns for the high feed prices the pic- low prices, I expect very strong prices in 1996-97 to ,If you haven't been involved in an activi- the high side, 3 percent or better, and corn prices ture is not quite as bright, but the hog industry cure the high prices. Remember, the large hog units • ty as described above, what would you are near or below present expectations, $2.30, we weathered the storm, as a whole, much better than can raise hogs profitably at $40 per cwt. with long- like to be involved in or learn more about? may see calves near $80 this fall. the cattle industry. run average corn prices. We in Michigan need to be Choice steer prices are expected to average As we have seen for years, different size pro- making the correct investment and management Examples: Ag in the Classroom. Fair Displays. Safety Days. $66-68 per cwt. for 1997, up from the 1996 average ducers react to conditions differently. Small farm decisions in 1997 so that we are in a competitive Project Rural Education Day (RED). Farm Tours price of $65.11, which was helped greatly by the $70 feeders continued to flee the hog sector. Whether it position in 1998 and beyond .• L ..J January 30, 1997 producers find, hire and keep good employees ..The business' strengths and weaknesses, as well as put Part 2. Part two of this workshop, financial man. mission of this workshop is to improve the perfor- together an organizational chart. Job descriptions agement and planning, is also two days in length. mance of the participants in achieving a high-quality for each position on the chart will be developed. It focuses on use of farm record data in decision John D. Jones, work life for all involved in the farm operation. Finding the Best People, Compensation making. Participants will look at their business in Telfarm Director and for Them, Performance Standards/Expec- terms of their mission and long-term goals, and Many agricultural producers look at hiring District Extension tations and Employment Policies. Panici- how they influence the financial ramifications of employees from two perspectives: 1) it,would be Farm Management pants learn the effective ways to find the best the business. great to have a pool of people to choose from who Agent Department people through advertising, job applications, and At the end of the workshop, participants will want to work, which would free up some time for of Agricultural themselves, but 2) looking for and finding good interviews. The best people also need proper generate a farm plan based on alternative configura- Economics, employees can be a r6d headache. compensation, another area covered in this tions of their profit centers, using the FINPAKsoft- Michigan State It all begins witt, pl~nning workshop. Performance standards set the stage ware package. This module also looks at how to University Extension for what che employer expects, and employee evaluate long-term capital investments as to profit- Many producers who have been through the P lanning for the future seems to be the AMAPIntroductory Workshop remember the im- manuals put it all in writing. Legal aspects are ability, taking into consideration the time value of phrase for the '90s. Michigan producers are portance of planning in their farm business. Using also discussed. money and tax implications .• looking closely at their operations and the mission statement, goals and tactics created Motivating, Training and Resolving realizing farming is more of a business now than during che Introductory Workshop helps them cre- Conflict. Workshop participants learn how to: Winter AAfAP workshops ever. Most producers have more on their minds ate a human resource management plan. Human motivate employees, use incentive plans, train Introductory workshops: than learning how to be business wizards, but they resource plans include family members, not just employees for the job, resolve conflict, and • Feb. 5, 12 and 19in Hamilton. Call Bill are realizing that business skills are what's needed those hired into the business. eliminate unwanted behavior. The workshop also Robb, Allegan County Extension, Involving everyone in the business teaches methods for terminating employees. (616) 673-0370. to keep their operations successful. • Feb. 6, 13 and 20 in West Branch. Call Thanks to Michigan Stace University Exten- Involving all that work for the business in plan- Keeping the business in order Paul Dyk, Ogemaw County Extension, sion's Agriculture Management Advancement ning the tasks to be accomplished can improve The AMAPFinancial Management series in- (517) 345-0692. Project (MviAP), Michigan producers are learning to productivity and keep people interested in what they cludes cwo, two-day workshops designed to help • March 5, 12 and 19 in Monroe. Call Ned t master strategic business planning. AMAPcan help do. The more they feel a part of the business, the producers improve their financial management of Birkey, Monroe County Extension, , producers think of cheir operation more as a busi- greater their interest in its success. The AMAP the farm business. The mission of this workshop is (313) 243-7113. ness, and plan accordingly. Human Resource Management Workshop emphasiz- to help farm business people achieve a higher level Financial Management: Wrinen as a cooperative effort by several MSU es that good management involves the wise use of of financial success and security. • Feb. 11 and 13 and Feb. 18 and 20 in human resources in accomplishing business goals. Part 1. The first workshop involves financial Frankenmuth. Call Dennis Stein, Saginaw departments and field staff, the AMAPworkshop accounting and analysis. It is the first of two County Extension, (517) 799-2233. encourages close interaction between the work- The workshop includes: • March 4 and 6 and March 18 and 20, shop experts and the participants, and strongly Review. An overview of the mission and goals of modules in this workshop, and is two days in location TBA. Call Roger Betz, Calhoun ' recommends all members of the farm business and the workshop and a review of the basic concepts length. It begins with a review of the basic ac- County Extension, (616) 781~784. cheir spouses to anend. learned in the Introductory AMAPWorkshop are counting and finandal concepts. The workshop Human Resource Management: In che Introductory Workshop, producers given. Participants also learn how to involve oth- helps the partidpant communicate financial • Feb. 11, 18 and 25 in Benton Harbor. Call develop their own business plan. This business plan ers in the business' goals and plans, and how the information, both within and outside the busi- Joanne Davidhizar, Berrien County exten- has four main components: che business mission, strengths and weaknesses of a business can affect ness. Emphasized are the recording, measuring, sion, (616) 429-2425 . its success . interpreting and communicating of financial data. • Feb. 13, 20 and'27 at Kettunen Center, long-cerm goals to accomplish the mission, short- This module gives the participant plenty of . Tustin. Call Gerald lindquist, Osceola term goals that achieve the long-term goals, and leadership vs. Management. Organizing County Extension, (616) 832-6139. tactics thac reach the short-term goals. for Peak Performance and Communicating practice entering and analyzing financial data. When For more information about AMAP, Human resource management Effectively. Participants learn how other busi- completed, the participant will be familiar with the call Steve Harsh, AMAP coordinator at The AMAPHuman Resource Management nesses manage their human resources and with balance sheet, income statement, cash flow state- Michigan State University, (517) 3534J518. Workshop is a three-day workshop designed to help what results. They willwork on defining their ment and a reconciliation document. Member Vision Care Plan from Michigan Farm Bureau The Importance of Eyecare uVision was founded on the principle that great eyewear starts with professional eyecare. That's why you'll find an independent licensed Doctor of Optometry in every NuVision office. Comprehensive eye examinations and contact lens fittings are easily arranged. Simply call ahead for an appointment. Once your eyes have been examined by a Doctor of Optometry at NuVision, your vision records will be maintained on file for your convenience. We invite you to compare our service. You'll find that what others call special care, NuVision provides as standard procedure. Family Plan Benefits: • 20% to 50% off frames • 20% off lenses and lens treatments • 10% off contact lenses • 15% off non-prescription items • FREE UV protection on plastic lenses Don't forget to use Don't torget Member your Farm Bureau Dental or Blue Cross VISA at NuVision Blue Shield for more Optical centers health care savings. nationwide. lL'JI~ Michigan Pork Expo to begin next week P .• lee-SIGn •••• .". -"., _, ~ • .'.1 jO( .• NCo • " ••• January 30, 1997 , •••• Precision ag meets T he Michigan Pork Expo, one of Michigan's largest agricultural expositions, will open Thursday, Feb. 6, for a three-day run at the Agrlcu.llure farmer's need for details Lansing Convention Center and Radisson Hotel. According to Sam Hines, Executive Vice Presi- by Perry Petersen dent of Michigan Pork Producers Association erra customer John Woodhouse calls himself (MPPA), 3,000 pork producers from throughout Michigan and the Midwest are expected to travel to Lansing to participate in educational seminars and T a "detail person." He says paying attention to detail and having access to in-depth oper- ating information are crudal to managing any business - John Woodhouse checks the yield monitor mounted in view the huge trade show. induding his 2,200-acrecom, soybean and wheat farm. The annual Professional Swine Producers Sym- Woodhouse admits not everyone shares his the cab of his com- posium willbe held Feb. 6 and the trade show, featuring passion for details. But that doesn't stop him from bine. Woodhouse is companies displaying the latest in pork production trying to convince others that overlooking important using precision agri- equipment and supplies, will open at 9 a.m. Friday, Feb. details can have an adverse impact on results. To prove culture technologies 7, and run through 1 p.m. Saturday, Feb. 8. his point, Woodhouse pulls a small card from his wallet to build a database "Pork Production Business as Usual- NOT!" is and asks a visitor to read the single sentence printed of detailed, site-spe- the theme for this year's symposium. Pork produc- on it. After a minute, he asks the visitor how many cific informatioD tion business management is the topic, and the goal times the letter "F" appears in the sentence. about his crop pro- is to enhance business skills and increase producer "It sounds simple enough," Woodhouse says. duction system. competitiveness. The symposium is sponsored by "People have the card right in front of them, and Wagner says, "Basically, we could get the collecting georeferenced yield data. They want to MPPA,MSU Extension and Pfizer Animal Health. almost everyone still comes up with the wrong equipment to give us whatever yield data we want- make certain the technology delivers what is prom- Another highlight on opening day will be the answer. They see only half the 'Fs'. They don't pay ed - whether or not it matched actual yields from ised. Once they see it work, they can't get it incorporat- Taste of Elegance restaurant contest in which chefs attention to the details and skip over the 'Fs' that the field." Looking back on the frustrations he and ed fast enough into their production system." from 15 of Michigan's finest restaurants will compete are in small words like 'of'." Woodhouse experienced, Wagner adds that Wood- The challenge for farmers, according to Wag- for a S1,000 cash award and the title of developer of A smile breaks across Woodhouse's face as he house's confidence in the technology was shaken. ner, is to follow a logical, well-thought-out plan for the best new boneless pork entree of the year. recounts all the times people failed his little quiz Wagner restored that confidence this past fall implementing predsion agriculture technologies. For the sixth year in a row, a Career Fair and and explains, "I've always been interested in de- with a recommendation that Woodhouse switch to Woodhouse calls precision agriculture the Industry Training Day, for young people interested tails." Fortunately, precision agriculture makes it a Coast Guard-provided GPS differential signal and wave of the future and says he plans to have it inte- in exploring careers in agriculture and the food possible for Woodhouse to satisfy his desire for a new yield monitor from another manufacturer. grated into almost every facet of his crop operation industry, will be held on Friday, Feb. 7. This pro- detailed information. Precision agriculture tools - IfWoodhouse had any lingering doubts about within the next five years. He says the new technol- gram will explore career opportunities in several personal computers, geographic information sys- the technology, they weren't apparent during har- ogy is a tool that helps him monitor all the details areas and will address a variety of topics including tems (GIS) and the global positioning system (GPS) vest as he sat in his combine driving through a corn that make up his crop operation and helps him animal nutrition, human nutrition, and a meat car- -- are just what Woodhouse says he needs to stay field and glancing at yield numbers as they appeared make dedsions that will maximize profits. cass cutting demonstration. on top of the details that affect his farm's bottom on the Vision System display screen. Woodhouse "When I got out of high school, people said you The MSUPork Industry Extension Team willagain line. Since 1995 he has worked closely with John provided a running commentary on yield changes as couldn't make a living as a farmer," he says. "But I've conduct a series of hour-long educational seminars that Wagner, one of Terra's cropping systems advisers, to he guided the combine back and forth in the field. bought a car, a tractor or a farm every year for the last will be held both Fridayand Saturday at the same time build a database of detailed, site-specific informa- He related yield drops to specific field conditions he 13 years. I think that's making a pretty good living.". the trade show isopen. Topics that willbe addressed in tion about his crop production system. had observed, such as topography or particularly the seminars include: herd health strategies, pig flow, Woodhouse purchased Rockwell's Vision Sys- stubborn weed infestations in specific sections. using pigCHA\1P,pork quality, transporting hogs, oper- tem and a yield monitor in 1995. That fall he was ready Wagner confirms that Woodhouse is representa- PRECISION IN AGRICULTIJRE- ations of the youth swine show, low~ost housing alter- to start collecting site-specific, georeferenced yield tive of the farmers he works with. "They start getting Perry M. Petersen, c.P. Ag.-CCA, Corporate Manager, Precision Agriculture natives, environmental issues and results of the 1996 data. But he experienced problems with the FM-based into site-specific farming with baby steps," Wagner Terra Industries Inc. Michigan Genetic Improvement Program. differential GPS signal in his area and with his yield says. "They start collecting georeferenced grid-soil Phone: (800) 831-1002 & (712) 277-1340 Fax: (712) 277-7383 For more, contact MPPAat (517) 699-2145 .• monitor. The result was inconsistent yield data. sampling data on some of their acres, or they start en a (OS s on" aye 0 s(are 00. Member Dental Insurance from Michigan Farm Bureau ( Member dental insurance is the affordable way to assure that you and your family receive the dental care services you require - even when sudden and costly needs arise. Measure the rates against your annual dental care bills and consider the advantage! ~~~;;~~~~~;~~~~~~~~~~~~--, I OR MAIL THIS COUPON TO: MFB MEMBER SERVICES,P.O. BOX 30960, LANSING, MI 48909 I I I I NAME I I I I ADDRESS I : CITY STATE ZIP ~ : ... MICHIGAN ILTELEPHONE COUNTY iI ~ ' •• FARM BUREAU ~~I~ January 30, 1997 Apple crop expected to rebound, cherries to focus on marketing by Don Ricks of color, size and price were rated as moderately M ichigan apple production in 1997 is important by consumers. Surveyed consumers also likely (0 be up considerably, since the said that they like information on apple varieties and 1996 crop was the shortest in six the specific characteristics of the different varieties. years. Although the exact crop size for any given A num.ber of Michigan apple industry leaders year will, of course, depend upon weather condi- have, during recent years, been involved in visioning tions, especially during the spring, Michigan apple and planning for the future with the Michigan Apple pnxlllction is expected to continue its upward Industry Strategic Planning Task Force. This has in- trend. During the next three to five years, Michigan volved analyzing major market trends, industry is likely to have some additional substantial crops in opportunities and needed strategies for a successful, the 25-to 29-million-bllshel range. competitive and growing apple industry in the future. JJkewise, market volumes and demand for Mich- Some of the priority areas that have been con- igan apples have experienced growth for fresh, apple- sidered by the Task Force include changing markets, sauce, slices and juice. Despite the temporary dip in competing industries, consumer preferences, variet- sales this year due to Michigan's short crop, demand ies, industry modernization needs, promotion and_ for both fresh and processing apples is expected to market expansion strategies, performance needs on continue (0 trend upward in the future. Demand for quality, export expansion, research and Extension fresh apple exportS from Michigan are also expected to priorities, pest management and pesticide availability rebound and continue to grow in future years. issues, food safety issues, and other strategies for a Red Delicious in the top spot for acreage ofMichi- dynamic, high-performance Michigan industry. The gan's apple varieties. Golden Delidous and Empire top Task Force is continuing to grapple with these kinds the listof most recently planted varieties according to of issues as a part of a continual process by the apple the latest orchard survey (see table). The relatively new pect Michigan's future fresh demand to increase for best suited for processing into slices, followed by Mut- industry of adjusting and gearing up for the future in varieties ofJonagold, Gala and Fujihave also had consid- each of these varieties, except Jonathan, along with su,Jonathan, Golden Delicious, Ida Red and Rome. an overall pro-active manner. erable new plantings, along with moderate amounts of increasing demand for the additional newer variet - For continued growth in fresh markets, it is Tart cherries Red Delicious,Jonathan, Rome and Spy. ies of Gingergold, Fuji and Braeburn. important to meet consumer wants and preferences It isexpeaed that the new tart cherryfedera1 According to a recent survey, a majority of In a recently completed survey of Michigan pro- in a high-performance fashion. In our recent con- marketing order program willbe operational for the Michigan apple shippers expect that Michigan's top cessors, the varieties rated most suitable for sauce sumer surveys and focus groups, consumers ranked 1997crop ifit's needed. This indusrry.. .S' Ql IQ c:: VI '0 Q. E ::s ! VI ::s '"c::... ~ iU IQ .s: 0 'Q. 0 ~ 0 0 Ql .s: a:: '" IQ c:: .Q :2 Qi c Cl IQ c:: .Q w E :2 Qj 0 1::= 0 ci ci z ~~ January 30, 1997 1997 dairy situation and annual outlook - keep a sharp pencil by Larry G. Hamm and Sherrill B. Nott comparing December 1995 and 1996, an increase of that have been geneti- .. T he year of 1997 will be another challenging nearly 6 percent. The recent change in federal mini. cally engineered for , ..... year for Michigan dairy producers. Dairy mum wage law called for a two-stage increase. The built-in tolerance to margins will be squeezed by lower milk first occurred in 1996. For those dairy farmers paying certain weed control prices combined with higher input costs. The situa- minimum wage, this forced a direct increase in labor chemicals and outright tion will be further compounded by difficulties in costs. A rise in minimum wage tends to cause all resistance to some obtaining adequate quantities and qualities of forag- labor costs to go up even ifactual wages paid are diseases come at a es, particularly hay. above minimum. If full employment continues, farm- higher price. The un. 1996 sets price record ers will be forced into paying even higher wages. known is how far yield In 1996, milk production actually decreased And, labor of any quality will be hard to find. increases and reduced from 1995 levels. Continued strong commercial Fertilizer needs for crop chemi- demand in the face of declining milk production Compared to the index base of 100 in 1990-92, cals will go toward resulted in record milk prices. For 1996, the average fertilizer and farm machinery are currently at 127, offsetting higher seed Basic Formula Price (BFP) was $13.39. The average the highest of all the major cost categories. Fertiliz- costs. Michigan all.milk price (price of milk before any er rose 4 index points in 1996, but farm machinery Feeds deductions) in 1996 was S14.85 per hundredweight was up only 2 points. Potash and potassium For the country as (cwt.). Unfortunately, the wholesale dairy product dropped 3 points, but nitrogen was up 6 index a whole, the cost index markets turned sharply during the last quarter of points. for all feeds went from 1996, assuring that farm milk prices in the begin- This upward trend in fertilizer prices has pro- 121 in December 1995, to 113 in December 1996-a lowing is quoted from their report AO:236, dated ning of 1997 will be substantially below 1996 levels. vided dairy farmers an incentive to more carefully drop of eight index points. The fivecomponents of all Nov. 25, 1996. Last year was the first year that many of the manage the quality and placement of livestock ma- feeds followed by their change from December to "The average U.S. hay price is expected to hit new and expanded dry-lot dairy herd operations nure. Purchased fertilizer has been used more spar- December in parentheses: complete feeds (-4); feed a record in 1996-97 - around S90 per ton, up from experienced a dramatic increase in feed cost and ingly. Expect to see soil nutrient management given grains (-23); hay;forages (+ 18); concentrates (-2) and S85 in 1995-96 - due mostly to a lower hay supply availability. The passage of the 1996 FAIRAct with a higher priority because of nitrogen prices as well supplements (-25). Ayear ago, corn prices were higher as well as higher grain prices earlier in the season." the increased flexibility in cropping patterns assures as environmental regulations. than now, and influenced ration costs until well into Dairy farm costs may rise more in 1997 than they that large-scale dairy operators will likely face more Seed the summer of 1996. did in 1996. When linked to lower dairy operation years of feed price and supply uncertainty. The index of seed costs rose eight points for Hay income, managers wiUneed cash flow projections to Constrained milk production in 1997 field crops, but only one index point for grasses and In a special report on the U.S. hay situation, show the net impaa of milk prices received and ex- In 1997, we anticipate sharply lower milk prices legumes. Dairy farmers have shown an interest in the National Outlook Board stated that hay is one of pected costs. More than ever, there will be continuing in the first part of the year. This, combined with in. brown midrib corn silage varieties and appear to the most widely grown crops in the country, third need for enterprise or cost accounting records .• creased dairy costs- particularly fuels and hay, will have bid up those seed prices. Other crop varieties in harvested area behind com and wheat. The fol- constrain milk production. Milk cow numbers in the U.S. dairy herd are anticipated to decline and are expected to be 1 percent lower in 1997 than 1996. The increased productivity per cow in 1997 wiIl be constrained by the lack of available supplies of quali- ty forages, at least for the first half of 1997. Conse- quently, total milk produaion for 1997 is anticipated to be level or 1 percent higher than 1996 levels. Continued general economic growth and strong employment suggest that commercial de. mand for dairy produCts will continue to be strong in 1997. As in 1996, there may be times of the year that demand for milk in specific markets will exceed available milk supplies. It is likely that overall commercial demand will more than adequately absOrb the limited milk sup- ply in 1997. World milk supplies are also somewhat constrained to the point where significant dairy product imports beyond those aIlowed by the cur- rent GAIT provisions are not likely. Because of the sub-normal prices to U.S. dairy farmers in early 1997, USDA aaivities to accelerate domestic food program purchases and to push for maximum use of the Dairy Export Incentive Pro- gram (DEIP) will add further to the demand for tight U.S. milk supplies. Higher prices on the way The lowest prices for the year will be in the first quarter. Milk prices should rise fairly steadily throughout the last nine months of 1997. For all of 1997, the BFP should average in the range of$12.30 to S12.60, about 70 cents to S1 lower than the record 1996 levels. The all-milk price for Michigan could range between $13.50 and $14 per cwt. for 1997. Although 1997 milk prices will not equal those of 1996, 1997 could see the second highest average annual milk price. There is likely going to be only a modest recovery in the cull cow and calf markets. Overall, dairy farm incomes will likely trail 1996 levels. Production costs to rise Produaion costs, as indicated by the index of prices paid by U.S. farmers, were up less than 2 percent during 1996. With a base point of 1990-92 = 100, the index in December was 112 in 1995 and 114 in 1996. This is a slower rate of cost inflation than existed in the two decades before 1990. Fuel Of all the individual farm cost items published by the USDA, fuel jumped the most. In December 1995, the index was 95; a year later, it was 110. LP gas went up 59 points, ending 1996 at 155. Gasoline was up 17, but diesel was up only 6. For those who used LPgas for crop drying or space heating, the increase hurt. However, many do not use any. Die- \,Sel, a predominant tractor fuel, increased the least, Qut the 6 percent rise was more than the rise in the a'sge of all costs. Worldwide, there are indications that energy mar ets may see rising prices, especially for petro- leum products. This will cause increases of prices in many products dairy farmers use. If this continues, it will renew the interest in minimum tillage for cropping. It will tend to encourage more use of alfalfa and less of other forage crops. Labor The index for wage rates went from 114 to 120 ~~IL'I:t'~ January 30, 1991 ~~--:~~;$+:~~~'$ Pi'.ObQ~hil it '-Michigan Weather ~ A strong area of low pressure that moved late winter and early spring would also tend to keep 'TI across the region on the 14th brought blizzard con- most overwintering crops dormant and less suscep- . Weather ditions to nonhern and western seaions of the tible to injury from any late-season cold blasts. Summary state, and resulted in some of the most extensive Long-lead sea-surface temperature forecasts contin- O.tl;•• k Tempemul't Precipitation Obs. Dev. from Actual NonnII snowpack across central and southern crop areas in ue to hint at steady warming of the equatorial Pacif- 12116196-1115197 mean normal (mch) (mch) several years. ic region into the coming summer, with moderate Houghton 16.5 ~.7 3.84 1.96 Marquette 161 3.1 6.91 1.96 The latest NOAAlong lead outlook for Febru- EI Nino conditions by this fall and winter .• Escanaba 18.4 -1.0 216 1.83 by Dr. Jeff Andresen, Agricultural ary still is uncertain, calling for near equal probabili- Sault Ste. Marie 18.0 1.9 413 1.83 Meteorologist, Department of ties ofbelow-, near-, and above-normal tempera- Lake City Pellston 24.2 22.2 3.5 31 6.00 1.89 5.12 1.89 Geography, Michigan State University tures and precipitation. Interestingly, the new 90- Can biotech boost Traverse City 25.7 1.9 6.84 1.89 _chocolate yields? A Alpena 22.7 1.5 4.41 1.74 strong, northerly jet stream led to the day outlook for February through April calls for an British research team is studying the genetic Houghton Lake Muskegon Vestaburg Bad Axe 21.5 25.6 23.8 23.8 0.8 ~.1 ~.3 ~.4 2.00 1.74 2.01 211 2.89 1.73 2.52 1.59 passage of a series of frigid, arctic-origin air masses during early January, quickly turning what had been a relatively mild winter into increased likelihood of below-normal temperatures, with odds of the below-normal scenario increased to 38 percent, and odds of the above-normal scenar- A structure of cocoa trees in hopes of creating higher yields. The shon -term goal is to promote Saginaw 24.9 0.9 2.40 1.59 breeding of superior varieties of trees using a new Grand Rapids 24.8 2.0 2.46 2.41 one to be remembered by its cold and snow. io decreased to 28 percent (the near-normal scenar- South Bend 26.0 0.6 2.90 2.41 Precipitation for the past 30 days was near- to io still has a 33 percent chance of occurrence). Pre- method of genetic fingerprinting. The research also Coldwater 24.5 ~.8 3.04 1.74 much-above normal, including very heavy lake- cipitation odds for this period are considered to be could lead to a basis for genetically engineered co- Lansing 25.0 1.4 2.00 1.74 Detroit 273 3.0 2.74 1.87 effect snowfall (by mid-January, snow depths of 2 to equal for below-, near-, and above-normal scenarios. coa. Experts say cocoa demand will increase dramati- Flint 24.9 0.9 2.02 1.87 4 feet were common across much of Upper and While likely meaning higher heating costs, the cally in the next century, due largely to bullish expec- Toledo 28.4 2.4 3.16 1.87 ~ IOtalsaccumuiated Irom April\. Normals are based on distnct.Mra(}!S . nonhwestern Lower Michigan). cooler-than-normal temperatures predicted for the tations created by booming Asian economies .• • • • Insuron(e ISno 0((1 en • Member Health Insurance from Michigan Farm Bureau For over 40 years, Farm Bureau and Blue Cross Blue Shield have teamed up to provide quality health care at competitive group rates with the personalized service you would expect from a Farm Bureau membership. No matter what your needs ... small business, sole proprietor, Medicare supplemental or individual coverage for you or your family - we have the right plan at the right price. ~~~;;~~~~~;~~~~;~~~;~~~~~, I OR MAIL THIS COUPON TO: MFB HEALTH SERVICES,P.O. BOX 30960, LANSING, MI 48909 I I a Individual/family coverage - for people who don't have employment-based coverage. I I 0 Small group coverage - for farm and small business owners. I g Medicare supplemental coverage - for seniors over 65. ~ I NAME I ~ I I /A. _ I ADDRESS I ~---. I CITY STATE ZIP :a I \) Where Belonaina Makes a DiBeren(e . ... •• _ MICHIGAN FARM BUREAU ILTELEPHONE COUNTY i ~I January 30, 1997 Management implications for livestock entrepreneurs by Gerald Schwab and Laura Martin Ifthe cattle price cattle. For producers who have not kept good H Owto manage in a world of change? The cycle has indeed started records, what better year to start than 1997? fortunes of livestock feeders were affect- to turn partially as a Swine enterprises ed adversely by prices of feed ingredients result of more cows For many pork producers, 1996 ~ppears to that were high and extremely volatile during 1996. culled from the national have been a profitable year. Average prices in the Both cattle and swine producers had to contend herd, then the next low- to mid-S50s took a big bite out of the high feed with corn and soybean meal prices that were much question is whether prices. However, it looks like some of the state's higher than expected. heifer calves from the pork producers viewed the historically high corn Feeding high-cost feed to cattle entering a histor- 1996crop should be and soybean prices in 1996 as an opportunity to exit icallydown market with finished cattle prices ranging retained for expansion the industry. The most recent USDA Hogs and Pigs in the low to mid S60s per hundredweight (cwt.) re- of the herd? This ques- Repol1, in December 1996, suggests that about 300 sulted in a rational and expected depression in prices tion is too late for the Michigan hog operations have left the industry, paid for feeder cattle. Most cow-calf enterprises rarely, producer who has sold most of these in the 100- to 499-head category. ifever, had good pricing opportunities in 1996. title to those heifers, but Operations with more than 2,000 head now account Swine producers experienced a mid S50-per-cwt. may be relevant for for 53 percent of our state's hogs, up from 46 per- price in 1996which provided a profitable year for many those who are wintering cent in 1995. Obviously, the re~olutionary structural enterprises. However, numbers of Michi~n hog farms over their calves. Al- change that is occurring nationally is affecting Mich- and ofhogs continued to decline in 1996. From these though there is no guar- igan pork producers as well. capsule observations, let us briefly discuss opportUnities Is there hope for a turnaround in the fortunes antee, the odds are improving that the 1996 heifer This spring, Michigan State University will be for producers in each of these meat sectors. of the cow-calf enterprise? We believe that there is calves brought into production willearn more profits conducting a survey of the state's pork producers Beef enterprises some basis for profitability for those cost-efficient than any heifer retained in the previous five or six with the objective of gathering information on the Farmers in the beef sector were hit hard this cow-calf producers who can provide a uniform set years. nature and structure of the state's changing indus- year at both ends - high feed prices coupled with a of calves that have potential for being resource- The high feed prices and low beef prices also try. This information should help farmers, leaders lengthy trough in the cattle cycle. Earning a profit in efficient in the feedlot and who can deliver a carcass have been difficult for the cattle feedlots. The feed- and educators better address the long-run growth, 1996 has been a challenge for cow-calf enterprises, that meets the demands of today's consumers. lot decision-makers have three key questions to profitability and viability of the state's pork industry. although there were opportunities to improve their With corn pricesexpected to be lower in 1997rela- answer for their operations- whether cattle are fed We strongly encourage producers to take the time cow herds during this low in the cycle. Focus must tiveto 1996,cattle feedlots will be chasing feweravailable and, if so, in what numbers, and how much will be to fill out this important questionnaire when they continue on cost control, where feed remains one calvesfrom the smaller national row herd to put into their paid for the feeders? As producers determine their receive it. Without this information, it will be in- of the major factors; improvement in genetic quali- lots.This combination of events isexpeaed to result in break-even feed.er prices, they will want to consider creasingly difficult to adjust to the evolving changes. ty; and efficiency of the cow herd: modest upward pressure on feeder calf prices. which market to target with that set of cattle. Producers should remember however, that Lately, there has been increasing talk in the with change comes opportunity. As some pork industry concerning price premiums for finished producers expand in size to capture the benefits of Administration changing wetlands rules cattle that meet market quality specifications. Care- new technologies, opportunities also exist for farm- T he Clinton administration announced that the Army Corp of Engineers will have tighter con- straints on permits it issues to fill isolated wetlands Rosemarie Watkins, who works on wetlands and conservation issues for AFBF,says the plan adds just another layer of bureaucracy for America's food ful scrutiny of the quality of feeder calves and their potential to grade high Choice and provide a premi- um will add intriguing dimensions to the cattle ers of all sizes to work together to capture these same benefits. Pooling resources, specializing in various production phases and sharing information in upland areas near headwaters of streams. producers. "The federal government has eliminated feeder's decisions. The feedlot operator who has and management expertise are but a few of the The Corp will also require that permits for an important alternative to farmers for dealing with enterprise records on performance of previous ways individual farmers can capture some of the those wetlands of three acres and more get the same small, isolated wetlands, and forced them into a cattle by source and type, break-even calculations, same production and marketing advantages of the intensive. review now required for 10 acres or more. complex and costly permitting process," she said. and expected feed costs will be in the best position very large-scale operations .• A Corp official said wetlands of one-third to three "We believe this action goes contrary to the to determine the maximum bid price for feeder acres would get a shorter review, similar to current assurances Corp and other offidals gave congres- requirements for wetlands of one to 10 acres. John Sudt, the Corp's chief regulatory officer, sional committees last year during hearing; on the Clean Water Act." 1997 annual poultry outlook by Henry Larzelere Broilers said his agency plans to tailor permits based on the Environmentalists applaud the rules, saying Eggs Broiler production in pounds of meat in 1996 activity planned on the land. "The intent is to reduce they will increase protections for tens of thousands The number of eggs and pullets on Jan. I, was more than 5 percent above 1995. Wholesale the degree of wetlands loss, but also to put in several of acres of wetlands across the country .• 1997 will likely be 2 to 3 percent above a year earli- broiler prices, fresh ice packed at Midwestern dties of the nationwide permits restrictions to ensure that er. Egg production in most of 1997 will also be 2 to in 1996, averaged 5 cents a pound above 1995. water quality is better protected," Sudt said. 3 percent above 1996, in response to favorable egg Broiler production in 1997 is expected to be 6 per- prices and feed ingredient prices at the end of 1996 cent above 1996 levels. This factor, coupled with Could the Endangered Species Act be a failure? and early 1997. pork production being about the same, will likely ost endangered species are barely making it Interior Secretary Bruce Babbitt, admitting he M or are continuing to decline, according to a recent study by the Environmental Defense Fund. hasn't seen the report, said additional efforts need to be made to make the ESAwork. He said the The egg-type chick hatch during the major hatch season of March, April and May 1997, will probably be 3 to 4 percent above the same period mean average broiler prices in 1997 will be about 2.5 cents a pound below 1996, or 59 cents a pound. Turkeys The study supports the American Farm Bureau ESA'sapproach has been "emergency room therapy of 1996. Likewise, feed ingredient costs will proba- The 1996 turkey crop was about 6.5 percent Federation's contention that the Endangered Spe- rather than accident prevention." bly continue their recent decline, depending on above the 1995 crop with prices for frozen whole cies Act fails to protect or save species. David Wilcove, an ecologist who co-authored 1997 crop production conditions. turkeys about the same in both years. The 1997 Two-thirds of the plants and animals protected the study for the EDF, said new approaches need to These expected increases in egg production turkey crop is expected to be 2 percent above 1996 by the Endangered Species Act are either still in de- be taken, espedally as they apply to private land. will likely mean New York wholesale prices for while prices will probably average about 2 cents a cline or their status is unknown, according to a re- "We are not doing an adequate job in rescuing Grade A large white eggs in cartons will average in pound above the previous year. cent EDF study. The group also said that protected species," Wilcove said. "Atbest, the law .currently is the 80s or 90s. Egg prices in 1997 most likely will be Theconsumptionofturkeyrontinuestogrow species were in particular peril on private land, say- only holding the line on losses, and it doesn't even below 1996. throughout the year because more uses of tuckeyare ing 27 percent were losing ground and half of the do that very well." He admitted that only a small found. However, prices in the lastquarter of the year will species were not known because of restricted access. fraction of species are improving .• be 5 to 10cents a pound arovc the first three quarters .• PERFORMANCE IN THE EXTREMES FREE \VATCHES \VITH PURCHASE! Receive lIis & lIer Wenger Swiss army watches with the purchase of any new Morton Building. Wenger, maker of the genuine Swiss Army Knife. http://www.cyanamid.com now offers the Swiss Military Watch collection. -I"'Trademarks, American Cyanamid Company C1997. Restricted Use Pesticide. Always follow label directions. .\d I"i:l 11:i I i -~(l:\-O:i-II . Bn 1\\ 11Ci t Y ." 1O-.H(I-~iO~ . 1,:1 II~:I...I\:I II I(l-~:i."-~:i~() "'Indicates uniquely shaped container trademark. J{od~ ionl (d ll-" i .I-(d 00. Sl. .Ioh 11'":iI i -~~ • -(l"()~ • 1'h "l'C J{i H.' .... (d (l-~i()-:i~i I Iltil[3:1~~G'I~ January 30, 1997 1997 Michigan sugarbeet outlook Institute of Agricultural Technology by John (Jake) Ferris he Michigan sugarbeet industry has been facing great opportunity for students T S some difficult times. In only a couple of years tudents interested in hands.on careers in edge back home with them," saysjoe Domecq, dairy The landscape and nursery program prepares since the 1960s (1%1 and 1972) did gross margins agriculture can get good jobs without four management program director. Domecq points out students for careers in areas such as landscape de- per acre over direct cash costs fall to or below that of years of study. that the many dairy farms and agribusinesses in the sign and construction, greenhouse maintenance and competing enterprises - that is before 1995. Michigan State University's Institute of Agri- state offer many excellent job opportunities for stu- garden center management. Director Bob Schutzki In 1995, declining prices and yields on sugar- cultural Technology (JAT), founded more than 100 dents who don't have a farm to return to. says some students enroll in the program for a career beets, in combination with sharply higher prices on years ago, is a two-year program that continues to Many students enroll in the JATright after change and others just out of high school find it corn and soybeans, brought gross margins down to prepare its graduates for good-paying jobs. Cliff high school, but jump says students often enroll appealing. "Students find the program a viable op- very competitive levels with the other enterprises. As a jump, JATdirector, says the program is an appealing because they are seeking a career change or an tion in post-secondary education. Upon completion result of 1995's lowest real margins since the 1960s and alternative for studems interested in agriculture additional degree. of the 16-month program, they are able to focus and the cool, wet weather at planting time in 1996, the area who know what they want out of their education. john Shelle, horse management program di- enter the industry right out of school," he says. planted to sugarbeets dropped to 153,000 acres. The JATconsists of 10 areas of study ranging rector, says the program enables students to have the jump says the program is currently using inter- The area harvested in 1996 was only 130,000 from livestock and horse managemem to crop pro- opportunities of a technical institution at a university active television (flY) to give students who don't acres because of weather problems. Only in 1986, the duction and turfgrass management. The majority of location. "The beauty of the tech program is that it have the option to attend the university an opportu- year of the flood, were more acres left unharvested. students enrolled must complete 48 credit hours to provides a good education with hands-on experi- nity to take the courses that they want or need. Yields per acre were down again in 1996, following a receive an associate's certificate. This usually takes ence and technical training in a university environ- "Currently, a basic soils class has 19 students trend that has set in since the mid-1980s. Total sugar- only three or four semesters. ment where there is a lot of educational opportunity enrolled right here on campus, 15 students in beet production, at just over 2 million tons, was the jump says that 99 percem of the studems through the use offacilities and resources," he says. Grand Rapids, and 19 students in Traverse City who lowest since 1983. The prospect for a reduction in enrolled in the program have already worked in the A four-year horse management program trains are learning via IlY," jump says. production forced the industry to contract with industry and have a good idea that is what they students for work in areas such as feed and pharma- Though the program has some drawbacks, Ontario producers in 1996. In 1997, sugarbeets wam to pursue as a career. Approximately two- ceutical industries. The two-year tech program is such as high tuition and competition from commu- grown in Ontario for processing in Michigan could thirds of the nearly 400 students will return to their designed for students who desire to work with ani- nity colleges, jump says that the results far out- expand to about 3,000 acres. family farm operations. mals on a daily basis. This skills-oriented program weigh them. "It is the greatest opportunity for a However, for those who did grow sugarbeets "job opportunities are great for those who are often trains students to work with the animals as young man or woman to get self-confidence when in Michigan in 1996, gross margins per acre were up open to relocation, but about 90 percent of the trainers or stable managers. starting out," he says. "It is one of the best invest- sharply from 1995. Not only have sugar prices in- graduates choose to stay in Michigan," jump says. Only 25 students are allowed per year, so ments that they can make for their future." creased, but the quality of the crop has improved. "The dairy management program is designed many are turned down for admission. Any growth in Call (517) 355-0190 of. toll-free (888) 247-4832 Sugar content of 270 pounds per ton of beets has to give students practical training. Most come from the program depends on availability of faculty mem- for more information on programs and interning been reported, compared with 250 pounds in 1995. family farms and want to take some technical knowl- bers, university funding and facilities to support it. students .• These higher returns, in combination with de. c1iningprices on competing crops and the prospea of more normal weather in 1CJj7, should result in a recov- ery in acreage. Those who were prevented by weather in growing sugarbeets in 1996 will have more opportu- nity to work beets into their rotation in 1997. Over the years, sugarbeets have earned Michi- gan farmers substantially higher returns per acre than from other crops. With the new farm program introducing more flexibility in planting decisions, but also more profit risk, more of a premium will be placed on diversification of enterprises as a way to manage these risks. Having sugarbeets as an alternative is an ad- vantage for Michigan farmers. The challenge will be to reverse the downtrend in yields and overcome some of the higher levels of physical energy in- volved with sugarbeets compared with other crops. DOES FINDING Under the new farm program, the Federal Agricultural Improvement and Reform (FAIR)Act, the refined beet sugar loan rate was frozen at 22.9 cents per pound. This is the same level of support A GREAT DEAL in effect on the 1995 crop. Certain modifications apply to whether the loans will be recourse or non- recourse. Authority for the USDA to control surplus sugar supplies by imposing domestic allotments on HAVE YOU U.S. sugar processors was eliminated. Since the sugar program does not involve federal budget expenditures, pressures to reduce sugar supports have been muted. Being a major GOING importer of sugar, the United States has kept sugar prices near the loan rate by restricting imports. This has kept domestic prices above the world level. However, the secretary of agriculture will be re- IN CIRCLES? quired to reduce the loan rates if other nations that export sugar reduce their subsidies beyond the reductions required under GAIT .• Meetin~ to focus on JUST ASK ALAMO:M bolsterIng beet yields When you travel with Alamo, you'll always get great rates, quality cars, and friendly service at any of over 270 locations throughout the United States, Canada, and Europe. So, if you've been W hat growers need to know about arresting the yield decline will be the focus of the Sugar Beet Symposium, Feb. 25, in Saginaw. looking for the perfect way to explore some new surroundings, Just Ask Alamo. For reservations, call your travel agent, access us at http://www.goalamo.com or call Alamo Rent A Car. Be sure to request I.D. Number 223212 and Rate Code BY. The 8:30 a.m. to 4 p.m. program will be held at the Horiwns Conference Center on State Street in Saginaw and willfeature some of the top researchers and grow- 1-800- 354- 2322 ers in sugarbeet crop management and produaion. C 1996. AlMw RnrI-A-~ boc. Alamo ftalU"S fine Central MOlors cars like the Chtvy Cavalitr. 1186-2-796 The program will focus on new sugarbeet -------------------------------------------------T------------------------------------------------- planting technology being used by growers in the United Kingdom, the advantage of narrow rows, $10 OFF WEEKEND RENTAL 50% TOWARDS AN UPGRADE and how to minimize seedling diseases. CertifiC2te is valid for S10 Off Alamo's low basic rate on a weekend rental of 3 to 4 days. CertifiC2te is valid for 50010 Off upgr.ade charges to any higher car category. Just reserve Just reserve a compact through a fulIsize car in the U.S.A. or Canada .• Car must be picked a compact car or above in the U.S_A.or Canada.Valid on rentals of up to 14 days.• Only There will also be a panel discussion on sugar- up after 9:00AM on Thursday and returned before 12:00 midnight on Monday .• Only one certificate per rental; not to be used in conjunction with any other discounted or beet production, suggestions for developing a pro- one certificate per rental; not to 1>e used in conjunction with any other discounted or promotional rates, or an Alamo Express Plus5'"or Quicksilver"" rental .• Please make your promotional rates, or an Alamo Express PIus5'"or Quicksilver"" rental .• Please make your reservation at least 24 houn before arrival. Upgr.ade is subject to availability at time of duction system and an overview of the Sugar Beet reservation at least 24 houn before arrival.• Travel Agents: Please include /SI-C-DH6B rental .• Travel Agents: Please include /SI-C-U24B in the car sell.• You must present this Revitalization Initiative (SBRI). The symposium will in the car sell. • You must present this certifiC2te at the Alamo counter on arrival. It is void certificate at the Alamo counter on arrival. It.is void once redeemed .• CertifiC2te has no once redeemed. • CertifiC2te may only be applied toward the basic rate which does not c:ashvalue and does not include taxes, governmental surcharges, fuel, optional items, or also have a trade show of more than 100 exhibitors include tlXeS, governmental surcharges, fuel, optional items, or airport access fees, if any. aIrport access fees, if any.• Any unused portion is non-refundable. Reproductions will of supplies and services. • Certificate has no cash value and any unused portion is non-refundable. Reproductions not be accepted, and expired or lost certificates cannot be replaced .• Subject to Alamo's will not be accepted, and expired or lost certifiC2tes cannot be replaced .• Subject to standard rental conditions at the time of rental .• Offer valid through December 15,1997. SBRI co-chair Steve Poindexter, Saginaw Coun- Alamo's conditions at the time of rental.• Offer valid through December 15, 1997. ty MSU Extension agricultural agem, says th~ SBRI was initiated Dee. 4 in Frankenmuth during a meet- For reservations, call your travel agent, access us at For reservations, call your travel agent, access us at ing of 25 growers, industry representatives and http://www.goalamo.com or call Alam~ R~q,t a Car at 1-800-354-2322. http://www.goalamo.com or call Alamo B..e,.tltA.Car at 1-800-354-2322. Be sure to request I.D. Number ZZJZl Z and Rate Code BY. Be sure to request I.D. Number Z 2 J LIZ and Rate Code BY. MSU Extension agronomists. For more information about the symposium and the SBRI, call Poindexter at (517) 799.2233 or Harold Rouget, Tuscola County MSU Extension 1186-2.796 C tllll6. A"'- RnrI-A-GoI boc. 1186-2.796 agem, at (517) 672-3870 .• ~~ll'I:t'~ January 30, 1997 Tr~d~ for 1997 - overall value of ag exports to drop by DavId Schwelkhardt and Sandra Batie but the major issue may be the question of whether for that agreement. Agriculture is expected to be a _ Are special grants or research earmarked by the U S.agricultural. e.xpo.rtsare expected to NAFTAwill be expanded to include additional coun. major topic in the negotiations, with export subsi. appropriations committee worthy investments? reach S55.5 btlhon In 1997, a decrease of tries from Central or South America. dies and import tariff reductions continuing to bea Do they serve national interests? S4.3 billion compared to the record year The Canadian government has indicated a key issue. The problems of non.tariff trade barriers- _ Should federal funding for research only be of 1996. Export volumes are expected to remain willingness to negotiate a free trade agreement with including such issues as food safety, packaging, in. awarded for research of national priority? Does strong in most product categories, but lower prices Chile, and the Chilean government has expressed a spection, and phyrosanitary regulations-are expect. the president's new line item veto authority en. for wheat and feed grains and a lower volume of desire to join NAFTA.While the U.S. has not yet ed to be a major new topic for negotiators. able him to veto special research grants? wheat export are expected to reduce the export reached a position of whether NAFTAshould be Agricultural policy outlook: research _ Should the formulas by which food and agricul. value of those products. Exports in several product expanded or how additional members should be and Extension issues on the agenda tural research and Extension funds are allocated categories are expected to increase in 1997. added to the agreement, the potential for an agree. With the Federal Agriculture Improvement (now based on farm and rural populations) with. livestock exports, led by an increase in meat ment between the Canadian and Chilean govern. and Reform (FAIR)Act of 1996 in place for the com. in the land grant system be revised to better exports, are expected to increase by S700 million to ments may force the U.S. to develop a position on ing year, domestic agricultural policy debates are reflect changing state demographics and the S8.7 billion in 1997. Within the livestock category, these issues during the coming year. expected to focus on other issues in 1997. increasingly diverse food and agricultural re- only dairy exports, at S700 million, are expected to U.S. agricultural trade with Chile is relatively The FAIRAct did not include a reauthorization search community? remain unchanged in 1997. small, with total U.S. exports reaching S130 million of USDAresearch and Extension programs, and the _ In the absence of federal funds for the Extension Fruit and vegetable exports are expected to in 1996. Wheat and feed grains represented half of House and Senate Agriculture committees must Service, would states and localities continue to again set a new record for both the volume and value all U.S. agricultural exports to Chile. U.S. agricultur. address these issues in 1997. Sen. Richard Lugar, provide the service? Could the federal funding of exports, reaching $ 10.5 billion, or S500 million more al imports from Chile were S695 million in 1996, chairman of the Senate Agriculture Committee, role be replaced with a memorandum of agree. than in 1996.Wheat and flour exports are expected to with grapes accounting for over half of all imports. recently issued a list of questions about agricultural ment to guarantee information sharing from decrease from S7 billion in 1996 to $3.9 billion in 1997. Though Chile does not represent a large export research and Extension programs that he hopes will federal and other research agencies into the U.S. agricultural imports are expected to reach market or a large source ofimports for the U.S., the frame the debate on these programs. His questions hands of Extension personnel? S34 billion in 1997, or S1.8 billion greater than in terms on which Chile is admitted to NAFTAwould include: _ How does the U.S. stack up against the rest of 1996. Increased imports of horticultural products will set an important precedent for all future expansions _ How should our research system structure and the world in agricultural research investments? account for most of this increase, with imports in- of NAFTA.The U.S.'s insistence that all agricultural delivery system be changed to be prepared to The movement toward a market -oriented farm creasing by S900 million to a projected $12.5 billion. commodities and all tariffs be included in the original meet the challenges of the agriculture sector in policy under FAIRsuggests that the competitiveness Asia will remain the largest regional market for NAFTAagreement with Mexico set an important the next century? of U.S. agriculture will be a major determinant of the U.S. exports, accounting for S24 billion of U.S. agri. precedent that negotiators may want to preserve in _ Is there a need for a college of agriculture in future success of farmers. The answers to these ques. cultural exports. Japan remains the largest customer negotiating the entry of Chile into the agreement. every state or should there be greater effort to tions about the role of agricultural research and Ex. for U.S. agricultural exports, purchasing a projected Preparations are also beginning for the next regionalize agricultural research (such as devel. tension programs in maintaining competitiveness, S11.5 billion from the U.S. in 1997. round of negotiations under the World Trade Organi. opment of regional centers of excellence that and the best structure for delivering these programs, Canada will continue as the second largest zation scheduled to begin in 1999. By that time, the link researchers from various states to work on will be a central issue that deserves the attention of customer at S6.1 billion, and Mexico will continue as U.S. must begin to develop its negotiating strategy research of regional importance)? farmers as the debate on these programs unfolds .• the U.S.'s third largest export market at S5.1 billion. U.S. agricultural exports to Mexico have shown a strong recovery from the 1994 devaluation of the Mexican peso. Exports to Mexico were S3.6 billion in 1993, the year prior to the approval of the North American Free Trade Agreement, and then increased to S4.5 billion during the first year of the agreement. Following the devaluation of the Mexican peso in November of 1994, which made U.S. products more "With Prowl we've been able to expensive for Mexican consumers and reduced the incomes of many consumers, U.S. exports declined to S3.7 billion. As the Mexican economy has shown take care of the weeds that are o signs of recovery and as Mexico has changed its do. mestic?gricultural policies, U.S. exp,orts have begun to recover, reaching S5 billion in 1996. major corn .challenges, like pigweed, Trade policy outlook International trade will remain a visible policy issue as the implementation of the GAIT agreement lambsquarters and velvetleaf." and the North American Free Trade Agreement continue to reduce some trade barriers. Trade dis. putes between the U.S. and Mexico on avocados, peaches and cherries may be resolved during 1997, Dale Look for stable ag Wessner credit interest rates by Mike Kelsey and Steve Hanson Kempton, he last few years have seen major fluctuations T in interest rates with ~gradual three-year de. cline from 1990 through 1993, and a dramatic in. Pennsylvania crease in 1994, as the Federal Reserve attempted to slow down the economy into a "soft landing." Appar. ently, they were successful- the discount and prime rates stabilized in 1995 and started a gradual decline late in the year. The expectation is for the Federal Reserve to continue to decrease rates by 0.25 to 0.5 percent early in 1997 and, depending on the trend in economic growth, perhaps more later in the year. Overall, loan demand in Michigan was essen- tially unchanged from a year earlier. A Federal Re. serve Bank of Chicago survey of agricultural bankers found the average loan.to-deposit ratio in the Sev- enth District had increased to 67.3 percent, the highest level since 1979. Despite recent declines, interest rates for farm loans remained above levels in the previous year. In Michigan, the real estate loan rate during 1996 aver- aged 9.73 percent, while the average operating loan rate was 10.69 percent. The Michigan ~tes were the highest among all states in the Seventh District. Look for interest rates in the upcoming year to remain steady or decline slightly on operating and real estate loans provided by Farm Credit and commercial banks. There are funds available from commercial banks and the Farm Credit Service centers for borrowers who represent sound finan. cial risks. Because of regulatory requirements on credit quality, banks are reluctant to add any mar- ginalloans to portfolios. Potential borrowers need to "sell themselves" to their lender by providing a sound business plan along with clear documentation of the firm's finan- cial health and repayment capacity. The Farm Credit Service centers continue to be aggressive in seeking out and negotiating farm loans with borrowers who are financially sound .• Farm management implications for crop producers by Ralph Hepp But all cash grain producers will experience the expenditure will pay back a higher amount than In 1997, monitor the financial conditions of T he financial return on crop farms the past year tighter cash flows during 1997 than the previous it costs. Repair machinery rather than purchase, the business during the growing season and make is mixed depending on the yields of major three years. For many operations, a reduction in unless expansion requires larger equipment or changes in marketing, production and financial crops. Most businesses should have had very free cash flow means fewer capital purchases, and more equipment. areas of the operation as they become necessary .• good cash flows during the past year due lO higher slower rates of expansion and higher levels of oper- Wide variations in commodity prices and crop prices and a relatively high level of inventories enter- ating credit needs during the year. yields puts considerable pressure on the financial Ag Day set for March 20 ing 1996. However, profit levels the past year were If the yields on Michigan grain farms return lO outcomes of the business. Financial management The Agriculture Council of America recently depressed for crop operations experiencing poor normal levels, the businesses will be profitable, but strategies to reduce the variation - such as pur- announced "Growing Better Everyday ... Together" yields due to the late spring and excess water early on. not at outstanding levels, since commodity prices chasing crop insurance, maintaining higher levels of as the theme for Ag Week, March 16-22, and set Reduced inventory carryover and lower com- have returned to more modest levels. It is expected financial reserves, slower rate of expansion, using March 20 as National Ag Day. modity prices will result in less cash available in the that net farm income will be about S55 per acre, less credit and diversifying the family income sourc- "Today more Americans are emphasizing a spring of 1997. The smaller amount of working near the S53 average for the 1990-94 period. The es - can reduce the risks of modern farming. The healthy lifestyle and are concerned about protecting capital for these businesses will require more fi- net farm income per acre increased lO S105 per financial position of the operation determines the the environment," said Ronald Vavrina, ACAchair- nancing of production inputs until revenue is gener- acre in 1995, but returned to the mid-S50s in 1996. best types of strategies (0 use for the next few years, man and Ag Day coordinator. l~erican agriculture ated from the new crop. Increasing production costs can be a serious so evaluate your options for financial stability, not is focused on meeting those consumer desires in a Even though the state average corn yields were problem on many operations, not only for crop what others should be doing. myriad of ways." 94 bushels in 1996 compared lO 115 and 117 bushels supplies, but also cash rents and other overhead Although the outlook for cash grain farms in Vavrina said the week and day will highlight in 1995 and 1994, some areas of the state were not expenses unless steps are taken (0 control costs. 1997 is average income, operations in good finan- farmers' and ranchers' contributions to American hurt by the late spring and excess water problems, Greater management anention lO prices being paid cial position can pursue appropriate technology to consumers through abetter tasting, healthier and and yields were very good. These operations had and input levels being used for production inputs improve productivity and efficiency of the business. more abundant food supply. very high profits, excellent cash flows, high income can pay high dividends during the year. Top producers can continue the growth and devel- The ACAis currently developing materials taxes and an opportunity lO prepay production ex- Review the recommended technical practices opment of the business, and apply technical inputs providing background and activity planning infor- penses for 1997. They enter the year with a good and proven financial management strategies for the and expand size to levels set by the management mation. The materials can be ordered by calling level of inventories lO market, but at lower prices. operation and follow them. Purchase capital items if team's mission and objective statements. (913) 491-1895 .• Land market price acceleration expected to. slow in 1997 by Steve Hanson and Ralph Hepp M ichigan land prices increased at a faster rate during 1996 than previous years. A study conducted by MSU last spring found that above average grain-hay land in the southern Lower Penin- sula showed gains of 8.1 percent and below average ground increased 6.8 percent. Irrigated land rose at DELIVERS a rate of 7.3 percent, while land capable of growing sugarbeets saw a strong gain of 8.4 percent. The survey respondents reported higher qual- ity grain land had an average price of $1,206 per acre, and lower quality land had an average price of More Nutrition S818 per acre. Sugarbeet land averaged U,659 per acre and irrigated land averaged U,422 per acre. Clearly, the characteristics of land, which determine Bigger Profit Nutrition Facts GARST631 its production use, have a significant impact on its value. Much Bigger Rental rates in the southern Lower Peninsula Serving Size: One large mouthful averaged $73, up from $66, per acre for high quality Servings Per Bale: Hundreds, maybe more grain land and $47, up from $41, per acre for low quality grain land. Sugarbeet and irrigated land had ~ .. average rental rates of S117 and S129 per acre. Cash Amount Per Serving rents were $ 113 and $ 115 per acre in the previous Dry Matter 41.5% year for sugarbeet and irrigated land. Acid Detergent Fiber 30.3% The survey respondents reported increasing Neutral Detergent Fiber 39.6% prices ofland due (0 strong commodity prices and Crude Protein 20.5% demand for non-agricultural uses. They reported that lower interest rates on land mortgages had a Relative Feed Value 153 minor impact on prices. While land prices are in- creasing, the supply ofland offered for sale is de- Average Yield creasing, causing further upward pressure on prices. Average Persistence Other surveys also showed that land prices are increasing in the Midwest. An October 1996 survey by the Chicago Federal Reserve Bank found average to good farmland increased an averaged of 12 per- cent in the Seventh District over the last year. Michi- Get more nutritional value from gan was excluded from the average because of in- sufficient response (0 the last survey. every acre of alfalfa you grow. The previous bank survey inJuly 1996 report- Our award ..winning alfalfa ed a 14 percent increase in land prices in Michigan during the last year. The bankers expect the up varieties really deliver. trend in land values to continue into the fall and winter months. The secret to making more Expect farmland prices to show a strong in- money with soybeans is simple. crease during the year, but at a lower rate than re- poned in 1996 on the Federal Reserve survey. Most Plant more Garst beans. businesses enter the year with a reduced inventory of crops due to lower yields and reduced prices, so Your Garst sales agent can the value of inventory liquidation will cause a tight- deliver an excellent package er cash now during the year, and greater borrowing for the purchase of production inputs. of yield leaders that resist Stronger balance sheets and returns during the last few years have allowed larger debt repay- diseases and tolerate stress. ment capacity and more optimism about the future. But the poor crop yields in most areas of the state, and sharply lower commodity prices will put a damper on the ability of most operations to p~r- chase land. Stronger upward pressure on cash rents will be more common than increases in land prices. The purchase of land for residential and/or recreation land uses has been significant in many areas. The strong Michigan economy will continue to put upward pressure on the land demand for residential and commercial uses in the southern part of the state, while the demands for land to be used for recreational purposes will continue to be strong in the northern Lower Peninsula .• January 30, 1997 Free weed control guide - Making your Scenes from American Farm Bureau Federation checkoff payoff Soybean Promotion Committee uses annual meeting in Nashville soybean checkoff dollars to provide herbicide research to growers M ore than 8,300 Farm Bureau members descended upon Nashville in early January for the 78th annual American Farm Bureau Federation (AFBF)annual meeting. Besides t~e young farmer contestants, two Michigan counties were also represented during the showcase. W eed control guides are nothing new to MSU Extension, but a new twist this year by the Michigan Soybean ~R£MOf£ SPRAYl Forme, Id~o ,,,hon J Promotion Committee (MSPC) will be to provide interested soybean growers with a free soybean Weed Control Guide. The 44-page soybean guide is available free from the MSPC, MSU Extension, agribusinesses and at local elevators who have requested guides. The guide is filled with tables ranging from herbicide use during preplanting, preemergence and postemer. gence. Covered, as well, are options for Roundup Ready soybeans, no-till soybeans and tables ranking the weed response to herbicides in soybeans. Authored by Dr. Karen Renner, MSU Extension specialist, the recommendations are based on re- search conducted by her and other weed scientists at MSU and from research reports and Extension bulletins published by weed scientists at other uni- Gratiot County Farm Bureau member Denis Netzley and his wife, Hillsdale County Farm Bureau also represented Michigan at the AFBF versities in the north central region of the U.S. Brenda, demonstrate their. "Remote Sprayer Switch" idea during the annual meeting in early January. They participated in the County "The guide is extremely valuable because it Farmer Idea Exchange at the AFBF annual meeting. Netzley was one Farm Bureau Idea Exchange with their Agricultural Accident Rescue lists crop rotation restrictions so you can check if of only 17 farmers nationwide selected to participate in the Program. The program educated emergency medical technicians and any of the herbicides you're planning on using in exchange. His idea came from working with electric spray valves and fire and rescue personnel about agricultural injuries and potential corn could influence soybean production or if any reducing the amount of time needed to properly correct the spray farm dangers. A total of 113 entries from 30 states applied to take of the herbicides you are planning on using in soy- pattern. part in the exhibit, but only 20 were accepted. beans might influence corn or any other specialty crop production/' Renner says. "The guide provides a valuable tool for farm- ers to reference when selecting specific soybean herb for their unique farming operation," says Keith Reinholt, MSPC's executive director. "Growers really want to have the recommen- dations in their hands with charts tables and ratings to easily compare options," Reinholt adds. Through this guide they should have information readily available and convenient to use. "There are various tables that are really helpful to growers when they're looking at postemergence herbidde applications and dedding if two herbi- cidess can be tank mixed together and what additives to put in or not put in," adds Renner. "We can spend S25 or $30 an acre and if we put in the incorrect adju- vant or put in too much of the adjuvant we can have poor weed control or too much crop response." "This is the first time that a commodity group has asked that they pull a section out and distribute it to their growers," Renner states. "Extension and MSU's Dean of Agriculture and Natural Resources quickly said 'That's fine the better the distribution the more helpful it will be to the Michigan farmers.' The soybean information can also be found in Extension bulletin E434 "Weed Control Guide for Field Crops" which contains herbicide information for most Michigan crops." E434 is only available from MSU Extension for a cost of S6. To get your free Weed Control Guide for Soy- beans, contact: MSPC, P.o. Box 287, Frankenmuth, MI 48734, Phone: (517) 652-3294 or your local Ex- tension office, agribusiness or local elevator. For a MS-DOS based computer software called SOlliERB to assist in herb select based on weed species the same organizations should be contact- ed. (If you have the 1995 SOlliERB program, no changes have been made for 1996.). Why will your 1997 weed Abandoned railbeds D uring the recent MFB annual meeting, an educational forum on abandoned railbeds control be easier? and the existing right of way was held with guest speaker Nels Ackerson, a Washington, D.C., attor- ney. His experience includes representing Indiana Contact your local elevator or county Michigan State farmers who wanted to stop the conversion of an railbed into a rails-ta-trails project. He presented a case before the court in which he argued that once University Extension for your FREE copy of the a railroad ceased operation 'on that line or the tracks were removed, the right of way should re- vert to the underlying property owner. In most cases, Ackerson believes the railroad knows it is not the original owner of the right of way, but they make an offer to sell it back to the Soybean Weed Guide underlying owner at a price the owner cannot af- compliments of the Michigan Soybean Promotion Committee. ford. This means the farmers can lose the right of way to the highest bidder. Moreover, rails-ta-trails organizations can purchase the land with govern- ment funds. This means trail organizations can meet the asking price of the railroads. For further information on this issue, please Making Your Checkoff Pay Off contact Jefferson G. Edgens, Manager - Environ- mental DepartmentlCommodity and Environmental Department, (517) 323-7000, ext. 2025 .• Michigan Soybean Promotion Committee, P.O. Box 287, Frankenmuth, Michigan 48734 • liJl[~~~~ • January 30, 1997 Michigan Farm News CI'assified: WINTER SALE You Can Save Big Bucks on Qualill Business & Legal Services EXPERIENCED Twisted Slash Point Michigan agribusi- ness attorneys with Allalla Seedl farm backgrounds. Knowledge and ex- perience in all farm We didn' raise our prices when Ihe price 01 areas; restructure, stray voltage, bank- milk wenl unlike manv other seed ruptcy, estate plan- ning. EAST SIDE: companies. Find OUIhow we can sell superior Thomas J. Budzyn- 20% Discount ski, 43777 Grose- varieUes and premium seed allow prices. beck Highway, Mt. Clemens, Michigan. Geerslon Seed Farms 48036. 1-810-463-5253. WESTSIDE: OEM-Certified 1-800-843-0390 Robert A. Staniha, 40 West Sheridan, Replacement Parts You can pav more for an alfalfa seed, Fremont, Michigan, 49412. bUI yoU will nOI Del a bener alfalfal 1-616-924-3760. Sale ends February 1, 1997 Field Cultivator Sweep I: •• 6ROlJP PlJRCHASIN6 ~vestock Ponies/Horses Agricultural Real Estate Services Call 800-292-2680, ext. 2015 LIMOUSIN BULLS, CHAMPION MINIA- SAVE MONEY. Re- TURE HORSES: Our FEED AND GRAIN bred cows, heifers, cycle your diesel show ring proven store for sale in open heifers, both and industrial air in- breeding program northern Michigan. Farm red and black, reg- take filters using the Includes inventory Farm Machinery Farm Machinery ~vestock istered. Excellent produces elegance, Sonic Dry Clean Commodities and equipment. pedigree! Good dis- refinement, beauty, System. $135,000. position and balance, attitude, No liquids or deter- 1-517-356-6317. E.P.D's. intelligence and tal- gents used. 50% FORD,NEWHOLlAND ALFALFA HAY: 60- HERD DISPERSIBLE: ent. Driving horses savings over new For Sale Eight crossbred 1-616-751-5373 tractors and equip- 70 pound square evenings and week- are our speciality. filters. ment from Symon's bales. High mois- cows, two with calf M&MS Farms Recycle Now, Inc. 1990 Black Welder on side, six due. ends. FOR SALE: in Gaines. For 43 ture corn barley. Williamston, MI Holland, MI Tomato Harvester One Carolais bull. 1-616-393-1029 Cadillac area. 175 years your best 1-517-733-2782. 1-517-655-4267 1-616-396-n24 Three steers. Three weekdays. acres, paved road. 6 Wheel Drive, deal for the long 616-396-8102, Fax run! WANTED: 1500 heifers. TEXAS LONGHORNS: Ideal farming, hunt- Odenburg Electronics, Symon's bales first or second 1-313-654-2709. I• ing, and recreation. Registered cattle 2 dirt sorts and 1-517-271-8445, cut alfalfa mix hay. PiedmonteseCattle: with excellent ge- Help Wanted Contains pastures, 2 color sorts Gaines Delivered to Adrian Business & woods, ponds, flow- Lean, tender, dou- netics. Weanling Call Mike for more area. No rain! ble. muscled, good steers, bulls, Legal Services ing well. $189,000. JD 146 LOADER, 1-517-436-3179. calving ease. Quali- heifers, yearling INDIVIDUALS for F-098. information complete, $1800. Call Dan VanVal- cellular: ty registered breed- heifers and bred custom harvesting METAL ROOF COAT- 4020 fender mount- ing stock. Also avail- cows available. operation. Texas kenburg, 519-322-8387 ing brackets, $100. INGS: Heavy fibered FAUSTREALESTATE able, embryos and Diamond 6 Ranch through Montana, or white roof coat- home: Power washer, 600 semen. 1-616-642-9042 1997 season. Must 517-263-8666 P.S.I., $125. Deer- ~vestock ings. H.J. Butzin. 519-738-6606 Redbird Farms be clean, honest, Call anytime, early FOR SALE: field. LLAMAS: Lapeer, Michigan hard working with or late. Cadillac area. 198 1-517-447-3897. North American Sit- 1-810-667-7389 farm background. 1-517-777-9815. acre operating ANGUS& GELBVlEH: ting Bull and Essex PUREBRED BOER 1-401-364-2468. dairy, beef, horse JD WEIGHTS: Parts Breeding stock. bloodlines. Pet numbers R27643, Free delivery! GOATS.MichFlock. males and weanling farm. Ideal farming, Fann SOUTHERNMICHIGAN R44350 and mount- Border Collie Stock Stud Service availa- females. Reasona- hunting, recreation. HORSE breeding Commodities Dogs. ble. bly priced! Two houses, barns, ing brackets. Used 612 North Madison, Call for more infor- farm seeking expe- CaUFor woods, pond, on JD 4020 tractor. Call today. rienced individuals $325, OBO. Call Bordner Farms Lapeer, MI 48446. mation and visit. Classifieds Christmas trees. FOR SALE: FIRST to fill several posi- 616-729-9397. Sturgis, MI 1-810-667-0169 1-517-645-2719. $310.000. F-100. cutting alfalfa, no tions. 1-616-651-8353 anytime. Miller's Uamaland Call Dan VanVal- UQUIDMANURE rain, $3.50 per bale. Oldfield Farms, Potterville, MI 1-800-968-3129 kenburg, SPREADERS: 1-517-686-0486. REGISTEREDPOLLED 1-517 -436-3179, FAUSTREALESTATE New and used. ANGUS BEEF: Hereford Herd Dis- MINIATUREDONKEYS Adrian, Michigan. 517-263-8666 HAY AND STRAW persal Sale: In- make the most mar- Balzer, Better-Bilt WANTED: Contact Bulls, heifers and parts. UPS daily. cows with calves . cludes some Rocky velous companions. Keegan Hay Com- Banner and Opti- We breed for con- Agricultural Also, grain dryers pany, Emmett, MI Perforrmance test- and handling equip- ed, semen tested. mum breeding. To- formation, disposi- Services ment. Hamilton Distributing Company 1'-810-384-6620. STRAW: 1000 bales. Clean Free delivery! Call anytime. SHAGBARK tal 34 animals. Rye Hereford Farm Rogers City tion and raise them with lots of TLC. M&MS Farms FARMDRAINAGE EARTHWORK: AND JOIINSON ~SYSTEMII INC. 1-800-248-8070 wheat straw. Call 1- FARMS Williamston, MI LaserConstruction. '~a"ul"I'" O.-IlIII 517 -684-3575 after Alto, Michigan 1-517-734-3005 1-517-655-4267. Surface drainage, NEW HOLLAND 1-616-868-6040 farm lagoons, water Complete Grain System 4pm. REGISTERED SCOT- NORTH COUNTRY retention round baler, #851. basins • Grain Bins • Hopper Bins Great shape! SWEET POTATO FOR CURRENT LIST TISH HIGHLANDCAT- CHEVIOT SHEEP. TLE, breeding stock building pads, ac~ • Bucket Elevators • Dryer Service $3500. Minneapolis PLANTS: Several of available Angus The breed that cess roads, drive- Moline R. Very nice varieties! Write or Cattle, write: Secre- and semen for sale. thrives where oth- • Millwright Service • Crane Service ways. tractor, 200. Allis call for Free Bro- tary, West Michigan Visitors welcome! ers survive. Large • Airstream Auto Dryers • GSI Top Dry Call evenings or Todd Haynes Chalmber B, re- chure: Fred's Plant Angus Breeders, meaty white face Carson City • Leg Towers/Catwalk Specialists stored, $2000. Farm, 4589 Ralston 585 36th Street weekends. sheep, rams, ewes, 1-517-543-7979. 517-584-3265 1-616-676-3011 Road, Martin, TN SW, Grand Rapids, lambs. Leave message. 38237. M149509. Charlotte, Michigan 4-H projects, great FARMERS, RANCH- TOP QUALITY HOL- crossbreeding. ERS: Do you have STEIN breeding age 1-810-796-3533. problems with rac- bulls, from high pro- coons in your barns ducing cow family. I: or coyotes after MICHIGAN FARM NEWS Top AI sires, $800- $900. Ponies/Horses your calves? Give me a call. Will trap for free if close to Johnson System, Inc. Pasch Farms Marshall, MI 49068 1-517-644-3519 home or on the way Michigan Farm News BREED YOUR MARE to work. Cedar has joined USAgnet, your one-stop Internet • LLAMAS GREAT, and now ARE to Ghalimaan. Pure- bred Arabian Stal- Springs. 1-616-696-8564. 1-800-962-1495 they're affordable! lion, Chestnut, 15.2 address showcasing ag classifiedsf These docile, intelli- hands. Produces gent animals make show quality foals. No wild! Live foal SLF Management wonderful pets for Your classified line ads in hiking, packing, pic- nicking, pulling guarantee. until April. $300 Services, Inc. 1-517-852-9035. Michigan Farm NelNs carts, or to just plain enjoy. Their wool is 517 -862-4262 valuable and they FREE HOME DELlV- can now appear on the also make standing guard ani- out- ERYISimply best! Complete the • Financial Reports • Financial Planning • • Estate Planning Investor Services Internet! mals. Call for a visit today! Horse Feed. ELITE +, 10% or 12%. • Lender Assistance • Debt Restructure • • Real Estate Services Grain Marketing Svcs 1-616-677-3309. Dealer inquiries Ask our classified personnel Ron & Nancy laferriere. welcome! For infor- • Monthly Bookkeeping AdvisorylNewsletter for more information laferriere llamas mation or delivery, Marne, Michigan MathIe Energy Supply Ken Swanson • Bob Jackson. Bill Spike or visit our site at http://www.usagnet.com (Just northwest of Co., Inc. Farm Financial & Marketing Consultants Grand Rapids) 1~-7340 III •Y . , .!J -l ~.1 II:~' ..JC... .-4 r' ill: . ~ !!lBaR ~ 1 .. , . FARMERBANUUPlCY Wanted To Buy ~ "Great Lakes Largest" ~ IMMIGRAnON LAW Throughout Michigan and Ohio CASH, NOT OPINION ~ 10th Annual ~ 0 for quality tractors, lawrence G.Relnbod, Attornev at law combines, and round balers. 1-517-439-2440 heads FARM TOY SHOW INCLUDING: TRUCKS, CONSTRUCTION AND RACE CARS. evenings. 810-350-2250 STANDING TIMBER FEBRUARY 15, 1997 ~-----------'~ood~RI~~~ • I FARMERS Livestock & commodity prices too law? I w ANDVENEER: s,nc. 1-81G-657-9151 ,days. Call .1-517-845-3345 Lease financing for equipment am!~rJ1~ - LOCATED IN THE JACKSON CROSSING S.W. Corner at US-127 and 1-94 (exi1138 oft 1-94) MALL - I · Cashflowtooslow? I evenings. vehicles & DISPLAYS • PARTS DEALERS • 60 STORE MALL • Mortgagepaymentsandbillsoverwhelming? WANT TO BUY: I · Wantsomeonewho understandslenders? I 6'-8' heavy duty ro- buildings · Wantsomeoneto talkto yourlender? I totiller in good con- :~Li ~~. SHOW OPEN I • Doyouunderstandyouroptionswith P.A. 116? dition. • 100% tax deductible TRADE .. ".: 9 AM to 4 PM I· Doyouneedto restructureyourfarmingbusiness? I 1-616-527-1988 . • Doyouneedto considerchangingyourvacation? WANTED • fixed payments ,. ..... :-:--' , ,tI". I We can, we have and we do all of the above. I STANDING TIMBER: • min advance payment e fOf llII1Ilcf lnIorlmIion: Doa & ""'r 0Wl- 9845 hot A\'t~.bWon. Ul 49201 Let us help tum your life around. I Buyers of timber of ISI7)714.3U5~ (SI7)S22 ....S12m~ I all types. Cash in L _ £.a.!!. !;'!J2.~!t.9131_.J advance! ~ o JACKSON CROSSING t.lAU MOTELS: 1-517-875-4565, ask for Tim. TEIMARKINc. 1. HoIi4Iy 1M _ (517) 783-2681 L 2. fmfaelcllM __ 7S4.78n 3. Budgetel 789-6000 Maple Rapids www.telmark.com 4. Mo1eI6 789-7186 Lumber Mill, Inc. 5. Super 8 MoleL __ 78&-8780 Real Estate General St. Johns, MI 800-451-3322 6. 7. Counlly HUItIIIM _ Best Mold 783-6404 789-9051 Wanted WANTED TO BUY: Cockshutt 50 or E5 Co-op or Cockshutt FARMS AND LANa SAME OLD NEW 20. Running or not. throughout Michi- YEARSRESOLUTION? 1-616-527-1988. Lose weight again? gan, agricultural All natural, Doctor WANTED TO BUY: 1 and recreational. f Large parcels pre- approved program Standing timber. ferred. We have for easy,safe weight 1-313-429-4322. HERITAGE Financing buyers! loss. Call, BUILDING SYSlEMS Call Dan VanVal- 1-616-684-7257. 800-643-5555 kenburg, Rural WANTED: Alfalfa BUILD IT YOURSELF AND SAVE PROBLEMS WITH Property Specialist. grass, mixed hay or 30 x 40 x 10 $4.189 50 x 75 x 12 $9.979 YOUR LAND CON- Faust Real Estate STRAW CHOPPERS: grass hay. Square 40 x 60 x 12 $7,487 60 x 90 x 12 $13.198 TRACT? We rebuild and bal- bales. No dust, no Late payments? Adrian 1-517-263-8666 ance. Some ex- changes. We stock rain! 1-616-328-4387. 60 x 60 x 12 $9.380 120 x 200 x 14-m2 $47.913 Commercial steel buildings featuring easy bolt up assembly from America's largest distributor. We have over 10.000 standard Back taxes? Prop- erty damage? 9 of For Display i chopper parts. sizes of shop. fann. industrial. commercial and mini-warehouse 10 qualify for pur- WANTED: Advertising ENGINEREBUILDING buildings. All are complete with engineer stamped-pennit drawings. 20 year roof and wall rust warranty. Call us for a free chase. We can our specialty. Old motorcycles, help. information package and a quote on our component parts. General Auto- Truck- Tractor- snowmobile and off 1st NATIONAL road vehicles. 1965 'Iini ".arehouse Sale Antique-Continental- 1~2324. SAVE 75% ON WORK CLOTHESI Kohler-Onan-Wis- consin engine deal- er. and older. Call JD at 1-517-676-0583. $9.999 10" , 110" \\ ilh 1-1 1I11il~ l.UIIlJlIt'lc \\ ilh J1.lrlilillll~ h IIJI :1I1lIl'l OIlhid l!.n'i.lI1'1 Information WANTED: Good, clean, recy- 70 years of service! Used irrigation Call II cled in very best HART'S AUTO living quality. Money back equipment, alumi- PARTS num tubing, PTO •• from guarantee. Free Cecil, OHIO pumps, hard hose r:YCheck brochure Suntex Recycling Toll Free 1-419-399-4777 TRAILERS: and soft hose trav- elers. Buy, Sell or Trade! Call Place your ad for 6 months, get phone !~ • paycheck J ash Merchant 1-800-909-9025 number or name inred. f ! LOANS BY PHONE 24 hours-7 days. STOCK-UP: Complete line of Avenger enclosed cargo units availa- Rain Control 1-8Q0.339.9350 Place your ad for 1 year, : get phone number or SAME DAY 800- 292- 2680 Sheepskin mittens, ble at low prices. WANTED TO BUY: APPROVAL hats, gloves, slip- pers, woolen gar- ments, yarn. Cata- Preseason specials on snowmobile and ATV models. WWII German 'and US War relics, uni- forms, flags, hel- name inrecl and also save $1.00 per ad. - Statewide Service - - Call Toll Free - ext. 6543 mets, knives, met- log available! Bellalr's Hillside TAG-A-LONG TRAILERS als, equipment, etc. Call 1-800-718-3738 1-800-515-6846 Bemal Tolan, Farms and 517-659-3478 1-517-287-5183. 1-800-968-3129 AAA MORTGAGE The Sheep Shed Munger, Michigan 8351 Big Lake for details & FINANCIAL CORPORATION Road, Clarkston. 1-810-625-2665. Visa/Master Card Wanted To Buy Special Events , We Buy FARM TOY SHOW CaUFor ARTHAIT1S: with Craft Show, Call 1-888-556- 2017 toll free. Ask Damaged Sunday, February Classifieds DICK for a free copy of Grain 16, 9am to 3pm. $2.00 donation. Lo- ALWOOD the "Arthritis Formu- 1-800-968-3129 la". Learn how to treat the condition, Buverand cation: Imlay City Middle School. Wick' not just the pain. 5ellero': Buildings • Cash grains OVERSEAS CANCELLATIONS Dealer HYDRAULIC CYLIN- • Feed Ingredients DER and hydraulic INVENTORY MUST BE SOW! pump repair. Seal • Milling quality grains STEEL BUILDINGS 202 Pearl kits and chrome WE HAVE 5 MULTI-USE BUILDINGS, work, all makes. Charlotte Strawchoppers bal- licensed and bonded 51 x 100, THAT WE SELL FOR $2.32/so. FT. MI48813 anced and rebuilt. with over 20 velrs QUONSET ROUND STEEL ARCH VenbnTooI& IIet8IIzIng 01emerlence American Steel Arch Inc. Wick Columns Are Office (517) Sebewaing, MI 1-517-883-9121 Guaranteed For 50 Years. 543-0996 800-818-8900 ~ Wick pressure-treated columns integrity. And these colored panels Michigan are backed for 50 years against are tough, full-hard base steel. IIln.ral Own.r. Agricultural decay and insect damage. That That's why we sell Wick buildings. Home Oa./Oll: Investor Commodities, Conveniently located gives you an idea of how Wick To learn more about strong (616) interested in pur- K AV to all attractions: Wick buildings, contact us today. chasing, producing Inc. buildings are made. 623-8780 royalty income for S( ~ Pigcon Forge &: GallinbUJK They're constructed with roof 445 North Canal immediate Prefer Antrim gas. cash . Lansing,MI 48917 ~ • Kitchens • Fuep1aces • Hot Tubs • Large Pool and wall steel screw-fastened for added strength and structural ~Wick Fax Other formations Open7 a.m.- 5:30p.m. LOG CABINS Open Year Round ~ Buildings. (517) considered. Mon.-Fri. Call Ton Free IN THE 543-9475 Call Jay, 1-800-968- 1-888-200-0625 7645. 1mJfIB~ SMOKIES for • FREE color brocbure • v I R Y L A N E Growers who planted Pioneer<8lbrand hybrids are riding down Victory Lane again this year in the 1996 National Corn Grower's Association Yield Contest! MICHIGAN NCGA WINNERS Class A Non-Irrigated 2ND PLACE Cuthbert Hog Farms of Cassopolis 3RD PLACE 171.6 bula with Pioneer hybrid 3394 Joelle Kwiatkowski of Dorr 179.9 bula with Pioneer hybrid 3861 Irrigated - ~Iass A No-Till Non-Irrigated 1ST PLACE Drozd Farms of Allegan 1ST PLACE 209.2 bula with Pioneer hybrid 3394 Charles J. Eickholt of Chesaning 228.3 bula with Pioneer hybrid 3573 2ND PLACE Golden Grain Farms of Hamilton 2ND PLACE 202.7 bula with Pioneer hybrid 3394 Eickholt Seed Farms of Chesaning 193.7 bula with Pioneer hybrid 3723 3RD PLACE Lennis Troyer of Burr Oak No-Till Irrigated 199.3 bu/a with Pioneer hybrid 3394 1ST PLACE Jerry Bement of Dowagiac 180.2 bula with Pioneer hybrid 3489 SAVE 50/0 ON ALL PURCHASES OF PIONEER- BRAND PRODUCTS FROM JANUARY 10 THROUGH FEBRUARY 14, 1997. (Quantity savings also apply.) 'f PIONEER. BRAND •PRODUCTS Technology That Yields™ All sales are subject to the terms of labeling and sale documents. @, SM, TM Trademarks and service marks, registered and applied for, of Pioneer Hi-Bred International, Inc., Des Moines, Iowa, U.S.A. @ 1997 PHil.