MICHIGAN FARM_ NEWS MICHIGAN FARM BUREAU April 30, 1997 -- Vol. 74, No.8 ~.NKI Few landowners opt out of Farmland Preservation Program A lthough it will be some time before fmal acreage figures are known, it appears that only 6 percent of the PA 116 contract holders requested termination of their Farmland and Open Space Preservation Act contracts during a one-year window of opportunity that expired April 1, according to preliminary estimates from the Michigan Department of Natural Resources. The one-year window resulted from legisla- tion passed last year, giving contract holders the opportunity to reduce or terminate the length of all or a ponion of their contracts. Before and after the one-year window, there were severe financial penalties for contract holders to get out of the program. Approximately 2,500 of the 48,700 contract holders requested termination of their entire contract, while another 1,500 con- tract holders requested a partial contract termi- nation. Another 2,000 contract holders request- ed a reduction in the length of their contracts. Michigan Farm Bureau's Ron Nelson calls those figures a reaffirmation of the benefits gener- ated to PA 116 contract holders. The program, designed to preserve farmland by prohibiting de- On Apri/15, the Chicago Board of Trade approved a plan to remove Toledo as an approved delivery point for grain and replace it with delivery points located along the waterway between Chicago and Pekin, III., which would severely limit the velopment or building of non-farm structures, accessto nearby delivery points. The plan must still be approved by the Commodity Futures Trading Commission, which provides contract holders a financial incentive in extended the comment period on the proposed plan by 60 days to allow for additional producer input. the form of reduced property taxes, based on net household income. There are currently 4.3 million acres enrolled in the PA 116 program. "When you think about the program, it has Six companies settle with 16 CjlVEB STORY been very, very successful in preserving farm- states, including Michigan, ..III Comment period for producers to voice land," Nelson said. "It's been in existence since their concerns extended 60 days 1974 and it still provides meaningful tax relief to a number of farmers, especially in a year when things are difficult. This past year was a classic on lysine issues ichigan producers faced with losing Toledo as an approved delivery point Certain indirect purchasers of unmixed uted to ~embers who fit the class that purchased for their grain have another 60 days example, with several commodities facing some feed-grade lysine in 16 states may be feed-grade lysine (unmixed with feed) originally to voice their concerns about the new delivery very serious income loss. PA 116 is structured eligible to file claims produced or sold by the defendants. system approved by the Chicago Board of Trade to provide an economic safety net in those years I mid-April, n six major commodity marketing The remaining 25 percent of the Distribution (CBOT) on April 15. Under a CBOT proposal, when there's a reduction in income and not a companies settled a class-action lawsuit for Fund will be disbursed to state-wide poultry, pork the location of approved delivery points for reduction in property tax." allegedly price-fIXing lysine, a common feed or other agricultural producer associations in the farmers utilizing futures contracts for selling According to the DNR's Rich Harlow, unit additiv~ in swine and poultry rations. affected states that submit valid requests to partici- corn and soybeans would change dramatically. chief, Farmland and Open Space Preservation According to Daniel Gustafson, the spokes- pate, and a proposal for use of any settlement funds The plan, which must still receive the ap- Unit, Real Estate Division, requests to terminate person for Heins Mills and Olson, PLC, the law distributed to it that will further the goals of the proval of the Commodity Futures Trading Com- PA 116 contracts will be processed and sent to firm that handled the case, the plaintiffs claimed association and its members. Disbursement of this mission (CFTC), would eliminate the St. Louis, the Michigan Department of Treasury to calcu- that the defendants agreed to raise and fix the ponion of the Distribution Fund will be by state and Mo., and the Toledo, Ohio, delivery points. late the amount of repayment of financial incen- prices they charged for lysine. Those who pu.r- based on the estimated purchases of feed-grade Toledo is used extensively by Michigan cash tives needed from the landowner. The process chased lysine indirectly from the defendants lysine (mixed with feed) by the members of the crop farmers for converting futures contracts could take four to six months. Once notified of paid higher prices than they otherwise would states' associations. into cash contracts at the time they expire. Un- the amount due, contract holders have 30 days have paid, he said. Last fall also marked the time when the der the new proposal, Michigan producers to either pay the bill, or opt to reduce the con- The settlements, totaling $2,125,000, pro- Michigan Pork Producers Association (MPPA) would be forced to rely on a delivery point lo- tract to seven years and remain in the P.A.116 vide for payments to qualified claimants who filed a class-action lawsuit on behalf of the cated in area defined by the waterway betwe~n program, if the repayment required is too large. purchased unmixed feed grade lysine from state's pork producers. According to Sam Hines, Chicago and Pekin, Ill., thus limiting the access ''I'm not sure what we were expecting," adds persons or entities other than the defendants. executive director for the MPPA, their lawsuit to nearby delivery points. Harlow. "But it certainly isn't awholesale group of The settlements involve such indirect purchas- joined with other states to form the global law- The result, says Michigan Farm Bureau people getting out of the program. Sixpercent in the es in any of the following 16 states: Michigan, suit just settled. Commodity Specialist Bob Boehm, will be in- scheme of thin~ is a relativelysmall amount." • Minnesota, Arizona, Florida, Kansas, Louisiana, Hines said the organization decided to join creased basis volatility and unpredictability, Maine, Mississippi, New Mexico, North Caroli- with the other 16 states once they realized quantify- which equates to lower cash prices for Michi- na, North Dakota, South Dakota, Tennessee, ing the amounts of lysine utilized by end users gan-produced corn and soybeans. Boehm says West Virginia, Wisconsin or the District of Co- would be difficult to substantiate. since the delivery points would be reduced from lumbia through the period of June 1, 1992, "Although a direct purchaser of pure lysine Toledo, Chicago and St. Louis to the single through April 10, 1996. from a commodity broker may be able to re- northern Illinois River location, producers' pay These settlements are different from the ceive something for the use of the product, II prices could be subject to unpredictable factors similar case settled last October for $100 million Hines said, "most producers in Michigan will fall such as barge traffic and flooding. in federal court in Illinois regarding purchases under what was classified as indirect purchasers "The proposal, if implemented, would of lysine made directly from the defendants or of the product - buying lysine through rations focus on the gulf export market demand and a their agents. and other formulations." single transportation mode, in the form of riv- 75 percent of the $2.125 million will be distrib- Continued on page 4 Continued on page 4 INSIDE THIS ISSUE OF THE MICHIGAN FARM NEWS News in Brief 2 Market Outlook 6 Check out field sprayers Capitol Corner 3 Business Strategies 7 before the crop season begins 10 Farm Bureau and community support Precision Agriculture 8 EQIPsignup underway 11 revitalized Ubly agriscience program . 4 Weather Outlook 9 May is beef month in Michigan 12 laurie testifies on needed changes to The apple blossom - Potato growers encouraged risk management, calls for accounts .. 5 100 years as state flower 10 to protect fields from late blight ...... 13 1997 Michigan county fairs listing ..... 5 Sell products and services in the Michigan Farm News classifieds-Page 18 ing S551 million from the program. Michigan Farm Bureau members were ask- Gingrich changes tune on tax cuts P ing that the funding equity issue be addressed erhaps bowing to pressure from his fellow believe the elimination of capital gains and esrate and that legislators put an end to rhe diversion Republicans, Speaker of the House Newt taxes is possible. A Treasury Department spokesper- of 4.3 cents worth of Federal Fuel Tax dollars to Gingrich (R-Ga.) called for the eliminarion son, skeptical of the speaker's proposal, said Ging- deficit reduction. In total, these changes could of all capital gains and estate taxes. Gingrich's call rich's plan would cost the federal government more mean an additional S200 million ro our state's comes just a few weeks after he said tax cuts should than $300 billion over five years and would jeopar- highway program. be put off until a balanced budget could be dize a balanced budget. Several congressmen, including Sens. achieved. Clinton administration officials believe the Spencer Abraham and Carl Levin, support either "We are going to have a tax cut this year," plan is more of a peace offering from Gingrich establishing a base funding level of 95 percent, Gingrich said. "We hope that the president signs it." to the right wing of the Republican Party, which or a "Turn Back Proposal" that would eliminate Some form of tax cut is expected ro be agreed has been critical of the speaker recently over the the Federal Highway Funding program altogeth- upon by the House and President Clinton, but few tax issue .• er. Unfortunately, the news on ending the diver- sion of 4.3 cents toward deficit reduction was Group uses strawberry cases to advance agenda From the not as promising. President Michigan Farm Bureau members" also received good news on the issues of Capital Gains and Estate T he Center for Science in the Public Interest, which calls for a single federal food-safety agency, says the hepatiris A virus scare in strawber- 1,000 people - and the 100 citizens who fell ill from E. coli poisoning from lenuce and apple juice. Tax reform as well. Congressmen from borh sides of Follow-up key to the aisle finally see the value of reform and/or out- ries provides proof rhar the Food and Drug Admin- The center, along with other consumer advo- istration can't handle protecting the safety of rhe cate groups, wrote President Clinton this week Washington right elimination of these taxes that penalize small nation's food supply. asking for the formation of a single federal food- Legislative Seminar business owners and farmers for investing in their "The bugs are getting ahead of us here and safety agency. businesses and in their own future. successes Michigan Farm Bureau members were we need to catch up," said the Center's Caroline The FDA says ir is working ro furrher im- A s president of the Michigan Farm Bureau, Smith DeWaal. She said the FDA is under-funded prove the safety of rhe nation's food supply. asking their congressmen to support outright I have many opportunities to witness the and only reacts after people fall ill from food. "There are important challenges ro overcome," repeal of both the Esrate Tax and the Capital effectiveness of our grass roots policy She said the FDA should work to prevent harm. said Michael Friedman, acting director of rhe Gains Tax. Short of that, members were asking development process in action. More importantly, I DeWaal cited last year's parasite-tainted FDA. Just one.fourth of the FDA's $225 million rhat the Capital Gains Tax rare be reduced to have numerous opportunities to witness farmers Guatemalan raspberries - which sickened over budget goes toward food protection .• no more than 15 percent and be indexed for from across Michigan, much like yourself, represent inflation, and that the Estate Tax exemption be the agricultural industry in a professional manner. increased from S600,000 to $2 million, with the Greenpeaceprotests U.S.embassy over soybeans The Michigan Farm Bureau Washington Legislative Seminar was such an event. You would have been proud of the 130 farm- rax rate being reduced by 50 percent on the remaining estate. Despire the success of this recent trip, there's G reenpeace invoked the help of an American music icon to protest the importation of genetically altered soybeans outside the U.S. embas- conducred on the effects of the product. Austrian environmentalists are trying to gather enough sig- natures to a petition calling for the banishment of ers speaking on your behalf on key issues that affect considerable work to be done. The ourcome on all sy in Vienna, Austria. genetically modified foods from the country. all of us. Issues like elimination of the Capital Gains of these issues is still subject to political winds of With Elvis Presley's "Return To Sender" blaring In January, Austria went against the European Tax, Estate Tax reform, implementation of the Food change and the ongoing budget battle that threat- from a tape recorder, 30 Greenpeace activists cere- Union and banned the import of genetically modi- Quality Protection Act, legislative resolution on the ens tax reform measures. moniously dumped a ton of soya outside the em- fied maize from the United Stares. issue of deferred payments, and perhaps most im- I encourage each of you, as Michigan Farm bassy's main entrance. The demonstrators unfurled In a related matter, the European Parliament portantly, revision of the Intermodal Surface Trans- Bureau members, ro capitalize on the work rhese a banner bearing rhe U.S. flag and the caption, "Re- voted 407-2 to end the sale of genetically altered portation Act (ISTEA) of 1991. members initiated by taking a moment during this turn To Sender." Greenpeace also delivered a pro- corn in the 15-narion European Union. The Europe- ISTEAis the name used to describe a 4D-year- busy season to personally let your legislator know test nore ro U.S. Ambassador Swanee Hunt. an Commission, the EU's executive agency, is nor old program originally created to develop our coun- how important these issues are to the success of "No one in Austria ordered manipulated soy," bound by the parliament's resolution to change its try's interstate system. It's funded by an 18.3-cent your operation. the group said. "No one needs it and no one wants it." policy. The resolution comes on the brink of next Federal Fuel Tax that generates approximately S12.1 Sincerely, Greenpeace, along with other pressure week's meeting berween European and U.S. officials billion nationally to be used for highway improve- groups, is opposed to genetically altered soybeans . over EU regulations for genetically altered food ments. Unfortunately, Michigan's rate of return is 87 because they say nor enough research has been products .• percent on highway programs and just 50 percent on mass rransir programs. Our stare ranks 45111 of 50 ~~p~~ stares in whar is returned from Washington, receiv- Michigan Farm Bureau Watchdog calls for more pork disease research Freeze damaged wheat crop A coalition of consumer and union groups last week called on the Agriculrure Department to look further into the possibility that hogs could a clean bill of health," and "it is irresponsible not to take a look." USDAofficials said rhey share the concern of A n Agriculture Department meteorologist says there's "no question" that the recent freeze across a swath of land in the Midwest from north- see how many of the nine lives were used up," Peterlin said. Peterlin said differing stages of the wheat carry and contract a disease similar to rhe mad cow disease present in British canle. The group, the groups, but said there are no signs that such a disease exists in American pigs. the Government Accountability Project (GAP), is GAP called on Agriculture Secretary Dan western Texas to Kansas caused damage and stress crop's development along the freeze line will mean reacting to a 1979 study rhat found similarities to Glickman ro act "before rhere is a tragedy." They to wheat plants. But it will not be known for several different areas will experience various levels of bovine spongiform encephalopathy - mad cow recommend upgrading the inspection of animals days the extent of the damage, said AIPeterlin, wheat plant damage. He said in Kansas some of the disease - in a brain tissue sample taken at a New prior to slaughter to look for signs of central ner- USDA chief meteorologist. crop was under snow cover, which will protect it York slaughrerhouse. vous system diseases. "Wheat is sometimes compared to a car with from the freeze. Wheat in Oklahoma did not benefit A GAP spokesman said none of the groups "We are seeking answers to very serious nine lives. This cat fell off a cliff and we're trying ro from snow cover .• involved "think it is responsible to conclude there is public health questions," GAP said. "The credibil- a (porcine) transmissible spongiform encephalopa- ity of the present food safery (inspection sysrem) North Carolina hog industry facing criticism thy," bur said as of now, "it's premature to give pork is at stake.". L arge-scale hog farms in eastern North Carolina have residents there stirred up and fearful their property values will continue to drop. They open and triple the space berween hog waste la- goons and nearby property. North Carolina Gov. Jim Hunt (D) recently said he would support a blame the hog operations for environmental prob- rwo-year ban on new and expanding hog opera- lems, and tourism officials are concerned about tions, but he would nO[ endorse zoning authority expansion of the indusrry and its effect on the tour- for counties. ism industry due ro public perceprion. A recent poll of residents in eastern North The uproar has one srate lawmaker fighting Carolina showed about eight out of 10 citizens favor mad. Richard Morgan, a Republican state legislator, srricter hog farm control. Some in the predominant- introduced a bill thar would halt new large-scale ly Democrar -controlled area say they don't care hog lot consrruction for one year and allow county whether a Republican or a Democrat gets the job commissioners to decide where big farms could done, just so someone does .• Floods hit upper Midwest farmers hard L osses to farmers in Minnesota, North Dakota and South Dakota from the larest round of flooding and this winter's massive amounts of snow and bitter able roads, dead livestock and lost planting time. Delays in planting, although not reflected in the loss figures, will likely have a negative impact on farm- remperatures could rotal more than S1 billion. ers' yields come harvest this fall. Floods have inundated more rhan 2 million Minnesota state officials say the magnitude of When it comes to quality and durability, an acres in Minnesota. Damage to flooded farms in- this year's floods has the potential ro eclipse 1993 all steel structure will outperform a pole elude lost stored grain, spoiled milk due to impass- flood damage of S1.5 billion .• barn every time. And when n comes to all AUTHORIZED ",GeOR DEALER steel structures the WedgCor metal build- The M~n FlU'tn NffWS (ISSN:0743-9962) is published twice per month except In the months of November, December, June .net July when only OM Issue Is prlnud, as a service to ~ul., members. by Michigan Farm Bureau, 7373 West ing systems are known in the industry as s.glnaw Highway, Lansing. Michigan 48917. Member subsaiptJon price of $1.50 Is Included In annual dues of the standard of excellence. Rural Builder Mkhlgan farm Bureau regular members. Additional subsafption fees required for rMIllng Michigan FlU'tn News to Magazine has awarded WedgCor the Gold nonmembers and outside the continental U.s.A. ,.rIodlcal postage paid at LansIng, Michigan, and additional mailing officH. Key Excellence Award 14 years in a row Steel Building Systems Letters to tM editor and S1atewide news articles should be sent to: Editor, MIdtigM Farm N.ws. Post Office Box for their commitment to quality. Pre-engi- Engineering • Selection • Accessories 30960, lansing. Michigan 41909-8460. POSTMASTER - Send addNa changes to: Michigan Farm BurHu, Post Offlce Box 30960, Lansing. Michigan 41909-8460. nee red to meet any local wind and snow Certified Loading • Delivery • Assembly Time Editorial: Dennis Rudat. Editor and Business MaMger. Thomas Nugent. Associate Editor. loads, these buildings can be custom Quality • Material Cost • Service DesIgn and Production: o.n Stiles. ContrIbutor: Sue Stueve\' Sattel Advertising Sales Represen1atIve: Joshua ~n:hant. designed to meet any need you might have. Call today for more infonnation: Officers: President. .-It LMute, Cass CIty: VIce PresIdent. Wayne Wood. Martette; Third Member, Jan Vosburg. ClimaX; You work hard for your money so make AdmInistrative DbKtor, Chuck Burkett T...sur., and ChIef FiMncJaJ Officer, Tom Parter; Secretary, David VancIerHaagen. OI~ors: 0Istrkt 1, Jim MIJ"~ Coloma; DIstrIct 2. Blaine VwISkk1e. MarshaU; Dfstrkt 1, MkhMI FuslUer. Manchester; your next investment work for you. District 4, Tom Guthrie, Delton; District 5, Alan Gamer, Mason; District 6. Wayne Wood. Marlette; District 7, Rick Johnson. lMoy. District .. Don Sutto, s.gInaw; Dfstrkt 9, Joshua Wunsch, Travetse City: District 10, MaIgaret Kartes. West 1h1ch; WedgCor building systems because you K.A. HElM ENTERPRISES DIstrlct 11, Robert Wahmhoff, .... Emmons. Sheridan. PromotJon and ~ At""': JMit Laurie. Cas City: faye Adam, Snover; an Vosburg. CI1max: Judy Mert.nn Keinath, DecbMIIe; Young Farmers. Jeff Homing. Manchester. deserve the best. (810) 798-8337 ~ ~ III I:t'4!f:'j April 30, 1997 C.apll,,8=, -. I! For more information on legislative topics in the Rep. Dingell recognized for food safety legislation C.raer Michigan Farm News, call 800-292-2680. U S. Rep. John Dingell (D-Trenton) was recog- nized by the Michigan Farm Bureau recently how difficult that can be." Implementation of the FQPA was a priority dur- U.S. legislators weigh in on for his efforts to ensure the passage of the Food Quality Protection Act (FQPA) last year. Dingell ing the Michigan Farm Bureau's annual legislative seminar. The act repealed the zero-tolerance Delaney received the recognition during the Michigan Farm Clause, which threatened to unnecessarily cancel road-funding issue Bureau's Washington Legislative Seminar. While presenting the award, Michigan Farm many important agricultural chemicals. The FQPA directs federal agencies to establish new food safety Eliminate federal highway funding gram, but warned the 21 donor states are a minori- Bureau President Jack Laurie, a Tuscola County requirements that consider the dietary risk to infants program and raise state fuel tax ty, meaning a total overhaul or elimination.will be dairy farmer, recognized Dingell's leadership in and children. It also requires major supermarkets to W hile there are very few things that difficult, at best. He said if total elimination is not successfully passing the FQPA. "This means a great provide information to consumers on the risks and enjoy widespread bipartisan support possible, the formula needs to be revised to include deal to Michigan farmers, especially with our di- benefits of agricultural chemicals and how to reduce in Washington, D.C., changing Michi- a 95-cent base floor for more equitable distribution verse agriculture, which relies heavily on so-called their exposure. gan's status as a so-called donor state under the of those funds. Michigan currently receives only 87 'minor use' pesticides to produce abundant and Despite the FQPAlegislation, Laurie said there are Federal Highway Funding program is one of them. cents on every dollar sent into the federal highway wholesome products," Laurie said. growing concerns that the Environmental Protection Officially dubbed the Intermodal Surface Transpor- program. "We're currently sending $250 million to Dingell acknowledged that considerable work Agency and the Food and Drug Administration inter- tation Efficiency Act, or ISTEA, the act is due for be spent somewhere other than Michigan," Abra- remains to see the legislation actually implemented pret and apply the regulations in a reasonable manner. reauthorization this year in Congress. ham said. "If we had a dollar-for-dollar match, we via new regulations, as Congress had originally in- "We believe Congress needs to dosely monitor EPAand If Michigan legislators have their way, the would have had a billion in additional road funds in tended. "We will be happy to work with you to see the other implementing agendes to ensure the final formula used to distribute those funds, generated just the last five years. Even with a base 95-cent that you get sensible and decent regulatory treat- regulations they develop match what Congress intend- from a 12-cent federal fuel tax, will either be revised floor, we would have gotten another $600 million ment on this issue," he said. "I happen to know ed when they passed the act," he said .• or the entire program will be scrapped. Two front- for road repairs in Michigan." runner proposals are receiving a great deal of atten- Sen. Abraham is also cosponsoring the Highway tion. The "Turn Back" proposal, would return all Trust Fund Integrity Act, which would allow the state ISTEA fuel tax funds to the state, while the "Step-21 to use funds from that trust, based on the previous Plan" would reform the ratio that's used to calculate year's contributions, for highways improvements. If the funding formula to the state. successful, he predicts it could mean an additional One of the biggest proponents for elimina- S50 million to the state of Michigan annually. tion, U.S. Sen. Carl Levin (D-Detroit), says the 40- Rep. Jim Barcia (D-Bay City), who serves as a year federal highway program has outlived its pur- member of the House Transportation and Infra- pose and benefits. "When it was first created, it structure Committee, acknowledged the need to re- could be justified to build our interstate system in evaluate the formula to make sure Michigan gets "a less populated states," Levin said. "However, the bigger piece of the pie." "We're going to have our formulas are unfairj they're based on concepts that work cut out for us. The current distribution system are no longer relevant. This is the most fought -over is not equitable and we're going to fight tooth and issue every time it comes up for renewal." ~nail to make sure we achieve more equity in those During a meeting with 130 Michigan farmers gas tax revenues," Barcia said, adding that if the attending the Michigan Farm Bureau \v.1shington formula can't be adjusted, he's prepared to offer a Legislative Seminar, Levin asked for their support in "Turn Back" amendment. doing away with the program in its entirety, saying Rep. John Dingell (D-Trenton) criticized Mich- the funds could be better used back at the state level. igan's track record on highway funding and spend- "If we repealed just two-thirds of the gas tax, or 12 ing, which ranks 45th in the nation. He said the cents, we'd pick up S200 million for the state of Mich- state needs to aggressively pursue a state gas tax igan," he said. "We're going to try and stop that bill increase or risk losing potential highway funding During the annual MFB Washington Legislative Seminar, members expressed their thanks to fro~ being re-authorized and we're going to try re- from the federal level. Rep. John Dingell (sitting on desk) (0- Trenton) for his efforts last summer in passing the pealing the federal gas tax being sent to D.C." "We're going to have a very major problem if Food Quality Protection Act. Levin stopped short, however, of supporting Gov. Engler does not begin his work to present a repeal of the 4.3-cent federal fuel tax, saying that program that involves additional tax revenues raised without those funds, balancing the budget would not be possible. in the state of Michigan from gas taxes," he said. "If Capital gains and estate tax they don't raise the gas tax they're going to have a Sen. Spencer Abraham (R-Auburn Hills) also expressed his support for revising the ISTEA pro- very tough time matching the federal dollars. And they're going to have to do it quickly.". reform predicted for 1997 ichigan farmers got assurance that there spending reductions, 98 percent of them, don't M will fmally be some action on Estate Tax reform and the Capital Gains Tax issues, during the occur until after he's out of office in 2001," Camp said. "There's S23 billion in tax increases and, unfor- Michigan Farm Bureau's annual Wdshington legisla- tunately, there's S70 billion deficits at the year tive Seminar. Despite ongoing budget and tax-re- 2002." form battles, legislators say bipartisan suppon for Although she voiced support for a Capital Gains both of these issues is growing. Tax cut, Rep. Debbie Stabenow (D-Lansing) said it will Calling the Capital Gains Tax unfair and immor- require a balancing act to balance the budget while al, Rep. Jim Barcia (D-Bay City) predicted a Capital cutting taxes. She was, however, very supportive of Gains Tax cut has a better chance of success than the Estate Tax reform. "When we look at things like the repeal of the Estate Tax. "I believe that the congres- inheritance tax, my feeling is to either eliminate it or sionalleadership is committed to a vote on Capital raise the exemption because it's in the public's best Gains Tax relief, and I predict that it will pass over- interest," she said, adding that she's concerned about whelmingly in the House," he said. "I'm very confi- the number of family farms being lost because of the dent that if President Clinton vetoes the capital gains inheritance tax burden. Barcia also voiced his suppon tax relief, we are within striking range of overriding for Estate Tax reform. "I know firsthand tha~ a family his veto in the House - which I would strongly sup- farm operation is truly a family affair, so it's especially port doing." insulting at the time of a death in the family when Rep. Dave Camp (R-Midland) expressed his those assets are divided up and they can't be trans- concern over recent discussion of delaying any tax- ferred to the children without the federal govern- reform measures such as Capital Gains until after a ment coming in with a meat ax and taking a big chunk new budget, already behind schedule, has been ofit for themselves," he said. "Those families worked Jim Miller, MFB board member from Coloma (left) and MFB President Jack Laurie make their finalized. "I think that would be a mistake," he said. hard and paid taxes all of their lives." case to Sen. Spencer Abraham (R-Auburn Hills) about the need to improve Michigan road- "We need to address tax relief as part of the budget During the Washington Legislative Seminar, ways through federal action process and do it now because if we delay it we're Michigan Farm Bureau members were asking their not going to get the tax relief." congressmen to support outright repeal of both Camp called the Clinton administration's capi- the Estate Tax and the Capital Gains Tax. Until that Front-panel labeling being debated tal gains proposals for homes a positive, but very happens, members were asking that the Capital he recent contamination of strawberries be- frozen-food industry. "Any product of foreign origin small, step. "I'd like to see an across-the-board capi- Gains Tax rate be reduced to no more than 15 per- T lieved grown in Mexico has reinvigorated talk of requiring front-panel labeling of country-of-origin has to be labeled in a conspicuous spot. The law does not say "most conspicuous.'" tal Gains reduction because that's what's really going to create jobs and economic growth," he said. cent and be indexed for inflation, and that the Estate Tax exemption be increased from $600,000 for all foreign produce. Country-of-origin labeling, Following a petition filed by two California Camp was equally critical of the Clinton ad- to $2 million, with the tax rate being reduced by 50 required by law to be placed in "a conspicuous packers and the Teamsters in 1993, the U.s. Customs ministration's overall budget proposal. "Most of the percent on the remaining estate .• place as legibly, indelibly and permanently as the Service ruled that labels on all imponed frozen pro- article or container will permit," is now required on all products. duce would have to be displayed on the front panel stating the fruit or vegetable s origin. That stipulation, New book warns of Ilkilier microbe II Whether that label should be on the side, however, is not the law. A final ruling has yet to be new book is about to hit the bookshelves tends that it also poses health threats to humans. bottom or front of the product is being discussed. The food industry doesn't believe labeling should made. And customs says it will "enforce the law." The American Farm Bureau Federation be- A that highlights a "killer microbe," one re- searcher's work on the matter, and a possible con- According to a recent soft profile of Doctor Burkholder in the New It>rk Times, the microbe is have to be on the front panel of products. Orga- lieves labels on imported products should state on nection to agriculture. "nourished by runoff from urban development and nized labor is working to have requIred front-panel the main display panel of the package that the prod- The new book, titled "And the Waters Thrned industries like hog farming." labeling on all foreign products. uct is imported in letters not less than one-half the to Blood," focuses on the work of researcher Dr. The book is written by Rodney Barker and is "We see no reason to move it over to the front size of the product name. Food products containing Joann Burkholder and her study of Pfiesteria pisci- published by Simon & Schuster. If the New lOrk panel," said Steven Anderson of the American Fro- imponed ingredients should be labeled to show all da, a microbe she discovered. So far the new mi- Times story is any indication, a book tour may be in zen Food Institute, the trade association for the countries-of-origin in descending order .• crobe is being blamed for fish kills, but she con- the works .• I~'J1[3: I @;li!] ~ I~'I~ April 30, 1997 Loss of Toledo Farm Bureau and community support revitalizing Ubly delivery point to agrlsclence •• program impact Michigan by Kara Endsley F orthe past three years, Ubly high school FFAmembers have been without classes and a teacher, but support from the local "I was really happy to see as many Ubly resi- dents come out this time," he continued. "I think that showed us that we have some students who want this and some parents who want this." Continued from page 1 that's a bunch of money!" er barges, while ignoring the fact that a signifi- "I applaud the CBOT for taking steps to community and Huron County Farm Bureau creat- Hagen, who farms in the Ubly area with her cant majority of the corn and soybean crops improve the delivery system for grain," says ed change. husband, Dennis, had two sons go through the produced in the eastern Corn Belt rely heavily Tom Irmen, manager of commodity hedging for Each FFAprogram must include classroom program and another who is currently a junior. on rail and truck transportation systems," The Andersons. "But removing Joledo as a instruction. Since the teaching position was not Hagen has been actively involved in the FFAboost- Boehm explained. "Ultimately, this proposal delivery point does not take into account the filled when the vacancy arose three years ago, agri- ers club which continued to offer graduating FFA will discourage producers and domestic users large volume of corn we ship to the east coast science classes in Ubly were canceled. The Ubly members going on to college $250 scholarships from utilizing the futures market as a price risk and to the southeast part of the U.S." Irmen FFAchapter was granted a three-year grace period even after the program was cancelled. ''I'm hoping management tool." hopes the CFTC takes into account the objec- to find a new teacher before losing its certification. we can turn the booster club into an alumni. If we "There are two ways it could cost us," tions The Andersons and other commodity When community members learned that the had started it a long time ago - maybe this explains Dr. Jim Hilker, MSU agricultural econ- brokers have raised and does not implement grace period ended in June, it decided to take ac- wouldn't have happened," she said. omist. "One is it may create a bigger basis. If the CBOT's plan. tion. Two school board meetings were called in Chicago pricing stays the same, that means we March. Concerned parent Sharlene Hagen and the "Anything they "It's estimated that there were approxi- could be getting a little less for our crops. It Huron County Farm Bureau sent letters urging need, we'll be there mately 250 letters to the CFTC opposing the may be that the Chicago price might be up and members to voice their support at a final meeting to support them. proposal, while there were only four support- we're getting a wider basis but not a different April 14. We're going to fol- ing the plan," Boehm said. "So you would think price." "I sent letters to people who are farming now low through on it. " that the CFTC would reject the proposal. "The other thing is that it's not just the Should they decide to approve it, the CFTC or who are agribusiness people. If I knew they had Randy Maschke basis that would be wider and how much, it would be subject to considerable congressional benefitted in any way from the program, I sent Huron County them a letter," Hagen said. Farm Bureau President will be more variable," Hilker adds. "It'll be pressure to justify their decision." harder to predict the basis, and that's a cost in ConIment period extended At the meeting, the school board voted to itself for a couple of reasons - one is you may Congressional pressure has already com- reinstate agriscience programs at Ubly High' School. "We supported the program and got the com- be planning on a certain basis to do some- pelled the CFTC to announce in mid-April the "It looks like there's going to be one, possibly two munity together to back the FFA,"said Randy thing, and you won't be able to forecast that as extension of the comment period on the pro- classes of ag science that we will be offering next Maschke, Huron County Farm Bureau president. well and it's also the reason why there may be posal until May 15. Michigan's Congressman year," said Fred Ugrow, Ubly High School principal. 'i\nything they need, we'll be there to support a wider basis at Toledo. When an elevator Nick Smith and Rep. Marcy Kaptur (D-Ohio) Although the position will only be part-time them. We're going to follow through on it." wants to give a forward contract, they have to were the first to urge the extension and were next year, both Ugrow and the community wish to "We just don't want the program to leave guess the basis. Now, if they're not as confi- quickly joined by 15 of their colleagues on see the program eventually expand. "I think every- here," Hagen said. "You can go a half-mile out of dent in what that basis is going to be, they're Capitol Hill. body who was at the meeting hopes that, if we get town and you're in a farming community. Whatever going to guess a wider one. They're not a de- "I am pleased that the CFTC has granted the right person running this program, it will grow," these students can learn in the program will directly livery point, and they're at risk - if the basis is my request for an extension on the comment he said. benefit the community." • wider, they eat it." period," stated Rep. Smith. "I will take every "If Ohio River terminals are no longer ap- available opportunity to press Michigan's case proved as delivery points, the CBOT would deal for keeping this important delivery point a serious blow to the farmers, elevators and open." agribusinessmen throughout the region," states "I sincerely hope that farmers in Michi- Doug Darling, Monroe County Farm Bureau gan, Ohio and Indiana voice their concern and member and member of the Michigan Ag Com- send letters to the CFTC," adds Darling. mission. "What does it mean to me as a produc- "Hopefully we can get more of our congres- er?" asks Darling, "I did a breakdown for just the sional body to support keeping Toledo as a seven counties down here and with the 20 cent viable delivery poin t." projected change in the basis off our 1995 crop ''I'm hopeful that the overwhelming out- year of over 8 million bushel of corn and 3.4 cry against the proposal during the public million bushel of soybeans - that came out to comment period will prompt the CFTC to ei- $2.38 million just for Monroe County if the 20 ther reject or request reinstatement of the cents was the change in basis." Toledo delivery point," says Boehm. "The real number that I do know is that Boehm also predicts that commercial in- Cargill took off a dime from their December terests, such as grain elevators and feed com- '98 contracts because they didn't know how panies, negatively impacted by the proposal much this thing was going to impact them," may take legal action to prevent the proposal adds Darling, who raises 1,100 acres of corn, being implemented if it's approved by the soybeans, wheat and alfalfa on his family's CFTC .• farm. "I called down to Cargill late in the day and got a bid of $2.72 a bushel. I called back To contact the CFTC.Mldntss your the very next morning and it had gone from a Sceneslike this of student-teacher instruction in agriscience will soon be possible again at letters to: $2.72 bid to a $2.62 bid and I asked 'Why?' to Commodity Futures Trading Commission Ubly High School after three years without a teacher. which they replied: It's because the board of Three Lafayette Centre trade could possibly drop Toledo as a point of 1155 2pl St., NW delivery for future contracts. They were al- Washington, D.C. 20581 ready building a dime protection into that - RE: Corn and Soybean Delivery Points loOKING 'FOR A REPLACEMENT FOR S 19-90's? Six companies settle on GL2415 819-90 51.85 46.83 +5.02 12.90 12.89 lysine issues 22 Michigan Locations from 1994-96 Continued from page 1 ment fund is to be distributed to those who GL 1927 48.18 +0.35 12.84 "In the end, we're not talking much in total purchased unmixed feed-grade lysine. Direct 819-90 47.83 12.94 dollars available to producers," Hines said. Any purchases from the defendants or any of 23 21 Michigan Locations from 1994-96 money that is allocated to Michigan will be distribut- businesses or persons who acted as defendants ed through the MPPAto provide programs and agents do not qualify. The rest of the settlement GL2656 47.27 +3.64 14.68 services. 819-90 43.63 13.87 fund is to be distributed to agricultural produc- 4 MicfJiqan Locations from 1994-96 The settling defendants are Archer Daniels er organizations whose members purchased Midland Co.; BioKyowa, Inc.; Kyowa Hakko animal feed containing lysine. AtllILH ,g.21 +0 .• 1 13.50 U.S.A., Inc.; Heartland Lysine, Inc.; Ajinomoto A full-page notice regarding the settle- 819-00 ~Jl7 13.49 U.S.A., Inc.; and Sewon America, Inc. Upon final ments including the options available to class 115 &fk/diJtll7 ~titJns /rI.,994-96 court approval of the settlements, the case members, procedures for requesting exclusion against the settling defendants and certain other from the class, submitting claims, and other defendants will be dismissed. The companies matters, is being published in several poultry, involved in the lawsuit deny any wrongdoing or SOLUTIONS pork and feed trade publications mainly in the liability and deny that those who purchased April issues. Persons who have questions or do lysine or lysine products suffered any damage as not see the published notice may obtain a copy a result of any such alleged conspiracy. by sending a self-addressed, stamped 32-cent At Great Lakes Hybrids, we take pride in finding customized solutions that In connection with the settlements, a class has been approved consisting of all persons and entities that purchased lysine originally sold or produced by the defendants, or lysine products, from persons or entities other. than the defen- envelope clearly marked "Notice Request" on the outside to Lysine Settlement Administrator, Conway, Deuth & Schmiesing, PLLP331 Third St. SW, PO Box 570, Willmar, MN 56201. Information can be viewed at the Lysine Set- best fit your operation. This spring, many Michigan farmers are finding their favorite soybeans are not available. Great Lakes Hybrids' GL 2415, GL 1927 and GL 2656's have shown to outperform MichIgan's top sellers over the past three years and they are available. Make Great Lakes your new favorite soybeans. Call 1-800-257-7333 for your local dealer. I] dants in the states named above during June I, tlement website at: http:\\www.kinsella.com./ 1992 through April 10, 1996. Part of the senle- lysine. 1997 Michigan Laurie testifies on needed changes to risk County Fairs Alcona County Fair management, calls for creation of risk Alger County Fair Allegan County Agricultural Soc. management accounts Alpena County Agricunural Soc. Antrim Co. Farm & Fami~ Fair Arenac Coun!y ~r'1. Soc. I ntestimony before a U.S. House Agriculture Subcommittee on Risk Management and Spe- cialty Crops, Michigan Farm Bureau President Jack weather and markets and to save money to cover expenses when needs exceed farm income." While praising the recent expanded availabili- for example, aimed at the dairy industry - such as milk, cheese and non-fat dry milk contracts - they are in their infancy and do not have suffi- Armada Agricultural Socie!;' Laurie said farmers need additional tools and ty of Crop Revenue Coverage that insures against cient liquidity to be a viable option for produc- Baraoa Coun!Y. Fair choices to manage risk beyond conventional crop both price and yield, Laurie said more work still ers," he said. "Likewise, the 200-plus minor Barry County Agricultural Soc. insurance programs. needs to be done, especially in regards to specialty crops, such as fruits and vegetables, have little ~ Cou~ Fair & Youth Exp-o. "Risk management is a big issue now with crops and livestock. He said marketing tools such prospect for marketing tools such as futures and Berlin Fair Association agriculture because of the movement away from as futures are not an option in many cases. options. Just to develop a comprehensive crop Berrien Co. Youth Fair Assoc. Inc. any government involvement in agriculture toward "While there are several futures contracts, insurance program is very challenging." • Branch County Agr'!. & Ind'!. Soc. a more market-oriented environment with the Calhoun Co. ~r'l. & Ind'!. Soc. passage of the 1996 farm bill," Laurie said. "It is clear that an effective risk management program Cass County Agrl Fair Assoc. involves managing many components. In fact, it Che~gan Cou~ Fair MFB President really is a multi-disciplinary effort." Chelsea Community Fair Jack Laurie Laurie said risk management needs to in- Chirm"ewa Coun!;' Fair clude not only an effective crop insurance pro- testifying before Chippewa Co. Stalwart Agr'!. Fair Assoc. gram, but also an effective marketing program and the House Clare CountY. ~ricunural Society short- and long-term income stabilization strate- Agriculture Clinton Coun 4-H Club Fair gies. One of those strategies, he said, should in- Subcommittee on Crawford Coun Fair Assoc. clude the creation of a farmer savings plan that Risk Management Croswell Agricunural Society would allow farmers to save pre-tax money for and Specialty Crops Dickinson Caun Fair future needs as a risk management account. pointing out the Eaton County 4-H Agr'!. Soc. "These risk management accounts should be need for expanded Emmet Coun!;' Fair limited to those engaged in production agricul- coverage for Ii ttfu I Fowlerville Agr'!. Socie!}' ture," Laurie said. "Producers could use these ac- specialty crops Genesee Counw ~r'I. Soci~ counts to reduce income fluctuations caused by and livestock. Gladwin County Fair Association Gogebic County Fair Gratiot Agricunural Society Gratiot County Fair for Youth Hillsdale County Agr'!. Soc. Houghton Cou~ Fair Assoc. Hudsonville Community Fair Huron Community Fair Association Ingham County Fair Ionia Free Fair Association losco County Agricultural Society Iron County Fair Association Isabella County Youth & Farm Fair Soc. Jackson County Fair Kalamazoo Co. Agricultural Soc. Kalkaska Coun!y' Agricultural Fair Kent County 4-H Agricultural Assoc. Lake Odessa Civic & Agr'1. Assoc. Lapeer County Agricultural Soc. Lenawee County Agricunural Society Luce-West Mackinac County Fair Manchester Communi!}' Fair Manistee County Agricultural Soc. Marton Farm Exhibit Assoc. Marquette County Fair Mecosta Co. Agr'!. Fair Assoc. Menominee County Fair Assoc~ Midland Co. Agr'!. & Hort'!. Soc. Missaukee Falmouth Agrl Soc. Monroe County Fair Association Montcalm County 4-H Fair Assoc. Montmorency County 4-H Fair Assoc. Muskegon County Fair Association Newaygo County Agr'l. Fair Assoc. Northern District Fair Association Northwestern Michigan Fair Oakland County 4-H Fair Assoc. Oceana County Agricunural Society Ogemaw County Agricultural Soc. Ontonagon County Agr'!. Assoc. Osceola County 4-H & FFA Fair Oscoda County Fair and Great Lakes Otsego County Fair Assoc. Ottawa County Fair Association Presque Isle County Fair Assoc. Roscommon County Fair Board Saginaw County Agricultural Soc. Saline Community Fair Sanilac County 4-H Agrl Soc. Late Seed Needs? LG Seeds Is Ready To Fill Your In-Season Orders Fast. Schoolcraft County Fair Assoc. Shiawassee County Agrl Soc. Sparta Area Fair Association St. Clair County Agr'!. Soc. S1.Joseph Grange Fair Assoc. CALL US Tuscola County Fair Association Van Buren Co. Youth Fair Assoc. Sunfield Service Center Vassar Fair Association Washtenaw County farm Council 800.709.3333 Wayne County Fair Assoc., Inc. Western Michigan Fair Assoc. Growing. ~tlG\SEEDS Different. Michigan State Exposnion & Fairgrounds Upper Peninsula State Fair -.,~~. GID~:I~~fi\I:{~~ April30, 1997 Mapkel L"1:%l-:f'li~1 Corn t l lower side of the loss estimates. Watch for pricing opponunities. Even though I think there is a good chance of reaching $4.60 fu- tures indicate live hog prices will be around $60 June through August. The futures also indicate that hog prices will stay over $50 through June 1998 for a.CI.ek Soybeans (explosive) Wheat Hogs Cattle - t l - t - t tures, consider starting at near $4.45 if you have not priced any to this point. For those who priced some at lower levels before the freeze, consider waiting for the higher prices and perhaps putting a stop those with an even basis. Are the fundamentals there to suppon these prices, or is it just a tempo- rary bullish market? The answer is, they probably are, but there is downside risk. Index: - .. stable prices; f .. higher prices; ~ .. lower prices; TP = topping; BT '" bottoming; 1 .. unsure loss in at some lower level. There are several factors supponing the market. SOYBEANS Production is running 2percent below a year ago As you can see from the 1997-98 column be- even though weights are up a couple of pounds. low in Table I, we have enough acres that a trend yield will sharply increase ending stocks. New crop S oybean prices continue to be in the explosive category-up or down. At taday's use rate we will go into next year close to zero carryover, which The March Hogs and Pigs Report indicated produc- tion would be about even. This is enough to justify by Dr. Jim Hilker, prices have been reflecting that. The other differ- near-term prices where they are at. Department of ence with new crop is the range of price possibili- is okay if we have a good growing season with all The middle term, 2-12 months, is also supponed Agricultural Econom- ties. The information below indicates new crop the planned acres. BUT, if the market thinks we by the assumption that Japan will come to the Unit- ics, Michigan State futures in the $2.70-2.80 range, and with a 3O-cent have to carry much over (sees a poor crop coming), ed States to nil most of what they will not be able to University basis, $2.40-2.50 cash. However, the options mar- prices could take off. If you want to play with lOper- get from Taiwan due to foot-and-mouth disease. kets tell us that there is a IOpercent chance futures cem in a basis contract, go ahead. Prices could drop While they cenainly will come for a lot of it, there is could drop below $2.20, a 140-bushel yield; and a a dollar and you will still have a good price, but let's uncenainty. The product is not exactly the same CORN take the great prices now for most, if not all, of our IOpercent chance that futures could be over $3.60, due to genetics, and we are not sure how Japanese A re corn prices near what fundamentals would lIS-bushel yield. Then adjust for basis. 1996 soybeans and play with new crop. consumers will react to the health scare. ~suggest? And the answer is, they are close at Consider pricing 20-30percent of your new The USDA made the same adjustment as I did Eventually the strong returns will cause expansion $2.95 old crop July futures and $2.80 December new crop - or catching up to this amount if you aren't after the surprising soybean Stocks Report, so the to the point where hog prices reflect long-run costs. crop futures. Can they change? Yes, the fundamentals already - if December futures break back through below 1996-97 column in Table 3 remains as in the This cost for the large producers is somewhere in can change. And, of course, weather-how it affects $2.90. You will still have plenty to price at coffee shop last issue. And I made only marginal changes on the the $38-42 range. The question is how long will it new crop production is the biggest variable. How do I levels if the market takes off. The other decision you 1997-98 situation. Basically, $6.70-6.80 November take to get there and will we overshoot as usual. It come to these conclusions? Using Table 1 below, the have to make is what to do in the way of forward futures reflect what the fundamentals would sug. appears to me that we ought to at least think SupplylDemand Balance Sheet for Com. pridng if the market stallS down with good planting gest with a trend yield and all those acres. through the pros and cons of forward pricing por- The biggest change in Table 1 from the last and growing conditions. Do we consider pridng The market is also quite aware of the wide range tions of our production through the next year. issue is projected com exports. Exports to date contin- more or catching up if prices dip to $2.70-2.7S? of price possibilities. Would you believe there is a l- CATTLE . ue to run lower than expected earlier in the year and out -of-l0 chance that new crop prices could fall new expon sales are really struggling. Much of the back to $S.SO?Would 42 bushels per acre along with -rhe April 1 monthly USDA Cattle-On-Feed Re- change from expectations is the decrease in com needed by Taiwan due to the hoof-and-mouth diseaSe in their hog herds, which means those hogs will have H as the frozen wheat in Texas, Oklahoma and Kansas, the possible late planting of spring wheat due to cold and flooding, and the shift out of another good crop out of the southern hemisphere do it? We've been there. Or, how about a I-out-of-lO chance that new crop soy prices could go over I port, released on April 18, showed a bit fewer cattle in feedlots than expected at 6percent above last year. The reason was fewer cattle were placed in to be eradicated and pork exports have been halted. wheat acres in Canada been totally accounted for in $8.50? Would 35 bushels per acre and a mediocre March than expected. The numbers showed place- The bottom line is, there is enough old crop the futures market? Maybe, but my analysis would crop south of the Equator do it? ments up only lpercent and the trade was expecting corn to take us through to new crop. This means suggest new crop Chicago futures need to be near Should we consider having up to 30percent of our them to be up 3-4percent. There were lpercent more it's highly unlikely that corn prices will be as explo- $4.60 to get the job done. This is reflected in the 1997 soybean crop priced? Some of you may have marketed than the previous March, somewhat on the sive as last year even with weather problems in the 1997-98 portion of Table 2 below. already. For those who have not priced any, consid- lower side of expectations. Overall, a friendly repon. new crop. This is not to say old crop prices will not The latest USDA Supply/Demand Report for 1996- er pricing I0-20percent at taday's prices. If Novem- Recently, cattle slaughter has been running 1- increase; if the weather causes an expected drop in 97 wheat had some changes that lowered projecting ber futures break back through $7.20, consider 2percent below a year ago and is down 1.8percent new crop yields, the market will buy more bushels ending stocks for June I, 1997. Food use was low- going up to 20-30percem priced. You may also want for the year. However, given the six straight months to hold into next year. However, if the weather adds ered 10 million bushels, but projected exports were to put in some downside protection while you are of placements above the previous year, that will bushels, the market will head in the other direction. raised 35 million, which lowered ending stocks by waiting or on even more of your crop. soon change, and so will prices. We expect prices If you want to play with 10percent of your old crop the net. I made some changes on my previous 1997- t. will fall back into the mid $60s by June and remain production with a basis contract, go ahead. But let's 98 projections as well. I lowered yields for the coun- there through August before starting back up to take these good prices on most of it and stan con- centrating on new crop. try by one bushel and harvested acres by a half- million to accoum for the freeze. This was on the T he hog price outlook through this summer is so good it's almost scary, as the lean hog fu- reach $70 by year's end. If cattle futures go back to their recent highs, consider some forward pricing. These increases in cattle on feed can only last so COMMODITY PRICE TRENDS long, and this has finally been reflected in feeder ... prices. Feeder prices should remain at present to ............................. tlJOO .......................•.••.. 'J2OD ............................. soo- higher prices as the numbers decrease. Calf prices ................. , ......•...•................ 48D" will make quite a rebound this fall for several rea- .......••....••..•... :JiOO 46QO sons. The beef cow herd was reduced over the past year due to the two years of low returns and last t«)O summer's drought in the Southwest. Unfonunately for many, the numbers will again be reduced funher than planned by the wicked winter and spring in : : : : : i : : : : : : : : : : :~: : : : : : : : : : :: :: the North Central ponion of the country .• : : : : : : : : : : : : : . fW\: .... : .:::: : .Com ~APr: ~97 . : : : : . : : : : : : : :: 2fIOO :JiOO ............................. Z. ::~~ ~~~.'~!..:::::.:::::: ]tOe Mature nature lovers In Jlu Aq Sep Oct bI k J.... Fell n.r ApI' should accept bison kill ..............•. 71.CX) .......... 8"1.00 ~e killing and slaughter of bison in the Yellow- I stone region has been loudly criticized byenvi- ii ronmentalists and animal activists. Groups claim that .~ the killings are a fundamental distortion of the Nation- 2f,O.00 ~ aI Park Service's mission of preserving "naturalness." ZSO.OO ~ Mark Muro, an editorial writer for the Arizona Z'lO.OO ~ Daily Star, says in an editorial that nature-lovers ZlD.oo ~ with a mature feel for the Eanh should accept the ...... "•. ",. I" Z2D.00 ~~ killing. "Killing buffalo, as it happens, amounts to a : : Soy IIIINI • AI'!: '91 :: .. :.:::: ZlO.oo :; responsible recognition of the truth that, in an era JUft J1u ... Sep Oct IbI lie Ju Fell flu .. Ju JI. Aq Se, Oct JbI DIe J.. Fa IIU' ,... ~ of human dominance, nature exists nowhere except by dint of human management," Muro writes. "The bison slaughter disturbs, in this respect, because it (Million aaes) Acres set-aside/diverted Table 1- Corn Estimattd 1995-1", 6.2 Projected Hilker 1996-1997 1997-199' 0.0 0.0 (Million acres) Acres set-aside & diverted Table 2 - Wheat EstimICId Proiec1Id 1t9S-1t96 1M-1997 5.2 0.0 ... 1t91-1991 0.0 (Million Km) Acres planted Table 3 - Soybeans EstirnItId 62.6 Projected 1t9S-1t96 ,-..,991 64.3 Hilker 1997-1991 68.8 exposes - brutally - how completely the fate of even the world's most indomitable wild beasts rests now with people and institutions." An pverpopulation of bison in Yellowstone Acres planted 71.2 79.5 81.4 Acres planted 69.2 75.6 69.2 AGes harvested 61.6 63.4 67.8 Park has led to a large number of starving bison Acres harvested 65.0 73.1 74.9 Acres harvested 61.0 62.9 59.7 Bu.Jharvested acre 35.3 37.6 38.0 being killed by Montana officials. Fear of brucellosis BuAtarvested acre 113.5 127.1 129.0 Bu.J1larvested acre 35.8 363 37.5 Stocks (million bushels) in the bison is among the concerns of ranchers and Stocks (mllllon bushels) Stocks (million buShels) Beginning stocks 335 183 125 state officials. The bison pose a threat to livestock Beginning stocks 1,558 426 909 Beginning stocks 507 376 460 Production 2,177 2,383 2,576 Production 7,374 9,293 9,662 Production 2,182 2,282 2,239 Imports 4 4 and to Montana's brucellosis-free status. 5 Imports 16 10 9 Imports 68 90 81 Mum argues that eeo-purists live in a dream Total supply 2,516 2,571 2,705 Total supply 8,948 9,729 10,580 Total supply 2,757 2,748 2,780 world, one where nature would flourish if only man Use: Use: Use: would leave it alone. The real world, he says, begs Crushings 1,370 1,420 1,430 Feed and residual 4,696 5,325 5,525 Food 884 900 910 Exports 851 895 900 for careful management. He quoted conservationist Foodlseed & Ind. uses 1,598 1,~70 1,750 Seed ,04 103 105 Seed, feed & residuals 112 131 120 Aldo Leopold to suppon his claims. Total domestic 6,294 6,995 7,275 Feed 152 300 200 Total use 2,333 2,445 2,445 "Leaving (nature) alone shows good taste but Exports 2,228 1,825 2,100 Total domestic 1,140 1,303 1,215 Ending stocks 183 125 250 ; poor insight," Muro wrote, quoting Leopold. "Every 8,820 9,375 Exports 1,241 985 1,100 Ending stocks, " of use 7.8 5.1 10.2 :!! head of wildlife still alive today in the world is al- Total use 8,522 Regular loan rate $4.92 $4.97 $4.97 x Ending stocks 426 909 1,205 Total use 2,381 2,288 ready artificialized, in that its existence is condi- 12.9 2,315 u.s. IUSOfI werage ~ 5.0 10.3 Ending stocks, " of use Regular loan rate $1.89 $1.89 $1.89 Ending stocks Ending stocks, " of use 376 15.8 460 20.1 465 20.1 Farm price, $/bu. $6.n $7.25 $6.50 « .. '0 c tioned by economic forces. The hope of the future lies not in curbing the influence of human occupan- 0 u.s. season .wr.ge Regular loan rate $2.58 $2.58 $2.58 II' j cy - it's already too late for that - but in creating a Farm price, S/bu. $3.24 $2.80 $2.55 u.s. season ~rage ~ better understanding of the extent of that influence Farm price, $/bu. $4.55 $4.35 $4.20. .St and a n~ ethic for its governance." • B~.Sln_ • of ownership. The rationale for using the low- er real rate is that inflation is expected to in- '1997Machinery Tracton and Combines (Without Heads) Net Cost AnooaI OJefhead Function Total Cost Costs Mainten.we Diesel str-,I_ Jractor Hp, Operalilg crease the income that the equipment will gen- CorrtJile or of a New Iilloo Cost per Exper6e per Per YeN PerHolJ &Repai Us&tr erate in the later years of its life, other things TruckSize Power unt of Use Yeal Hour Hour Year of Use of Use CostAr Gabs being equal. The first year's income is conse- 60 25,100 500 2.fm 522 4.28 2.142 4,750 9.SO 1.18 ~2 75 32,400 500 3,347 6.69 5.40 2,699 6,046 12.09 1.51 4.0 quently an underestimate of productivity in lOS t.fl.W 46,axl 5SO 4,898 8.91 6.47 3.558 8,456 15.37 1.03 56 by William Lazarus, Extension Economist, later years. An interest charge based on the 130MfWD 63,lXXl 5SO 6,580 11.96 8.12 4,467 11.046 20.m 1.39 6.9 160MPM> 74.Gl 600 8.149 1158 10.07 6,044 14,193 D.66 1.18 8.5 Farm Management, Department of Applied lower real rate correlates with the lower first- 28.83 2.15 10.6 200MfWD 89,500 600 9.793 16.32 12.51 7,WJ 17.l99 Economics, University of Minnesota year income. 225f.fWD 99,lXXl 500 10.798 21.60 13.64 6,818 17,616 3513 1.98 11.9 Operating Costs 2604WD IOS,300 500 11,480 22.96 15.58 7.788 19,268 38.54 2.11 118 Minnesota farm Fuel cost is calculated by multiplying the 3104WD 3604WD 109.800 120.600 500 500 11,967 13,136 2193 26.27 1816 21.06 9,128 10,531 21,095 23,667 4219 47.33 2.20 2.41 16.4 19.1 machinery economic fuel consumption by the price of fuel, with fuel CorrUle SInaI CorrtJile Med 101.700 117,900 300 300 11.671 13,547 38.90 45.16 28.m 32.58 8.424 9,775 20.095 D,323 66.98 77.74 18.SO 21.45 9.8 11.4 consumption assumed to be 0.053 gallons of cost estimates for 1997 diesel fuel per horsepower hour. The price of Conilile 132 300 15 7 SO.96 37.64 11293 26580 8860 24.17 118 Tractor Net Cost Estinated Total T~CrsJ~ Operatilg Diesel T he tables in this publication estimate farm farm diesel fuel is projected at 85 cents per gal- Size of A New Work Performed Cost l.aOOr Total Expense Fuel E~t machinery operations function costs for Ion. All power units, tractors, combines, trucks, Til~ ~Ipment (liP) ~t kJe1rv kIe'Jfr Abr Tractor + Machine + Chalge = DoIa~ / AcJtI GaVaae 1997. The estimates use an economic etc., use diesel fuel. Lubrication cost is assumed Chi5eI Pklw 15Ft 130 t.fY!1) 5,974 8.73 873 37.74 2.30 0.97 1.OS 4.31 1.16 0.79 engineering approach. The data represent an to be 15 percent of fuel cost. Chisel Pklw D Ft 200MFWD 13,016 1138 1,338 55.68 2.15 1.32 0.69 4.16 1.26 0.79 CIiseI Pklw 31Ft 225t.flW 16,483 18.04 1,804 66.73 1.95 114 0.51 3.70 1.06 06€ average farming industry cost for specified ma- The formulas for repair and maintenance Chisel Pklw 37Ft 3104WD 18,~1 21.53 2.153 76.92 1.96 1.19 0.43 157 1.14 0.76 chines and operations. costs estimate total accumulated repair costs ChiselI\:Jw, Front Osk 9 Ft IOS~ 6.659 5.41 541 3195 2.84 1.74 1.70 618 1.48 1.03 Chisell\:Jw, Front Ds1: 19 Ft 2604WD 20,516 1\.59 1,159 75.57 3.32 2.40 0.79 6.52 1.75 1.19 Machine costs are separated into time and according to the accumulated hours of lifetime ChiSiPliM. Disk 21 Ft Fokf 3104WD 21.515 1114 1,314 M.55 31t 211 0.70 6.13 1.76 115 use-related categories. Overhead costs accrue use. Repair and maintenance calculations are ~Pk7N4-18 75 9,274 2.78 334 32.89 435 4.18 130 11.82 138 1.43 to the owner whether or not a machine is used. based on American Society of Agricultural Engi- ~F1(iiS-18 IOSMfWD 11,332 3.48 417 38.79 4.42 4.09 2.64 11.16 317 1.60 MoIlIloard Pk7N8-18 i60MFWD 18,135 5.56 723 54.94 4.25 197 1.65 9.88 3.31 1.52 Overhead includes time-related economic costs: neers (ASAE) formulas. The total cost is then ~l\:Jwl0-18 2604WD 26.342 6.95 1,043 78.52 5.54 4.43 132 11.29 4.19 1.98 depreciation, interest, insurance and housing. divided to an average per-hour cost estimate. Fiekl Cultivator 12Ft 75 4,668 9.02 1,082 27.11 1.34 0.65 1.02 101 0.78 0.44 Operating costs occur only when a machine is The amount of annual use of a machine is an FieldCtiNa1or18Ft IOS t.flM) 7,082 12.98 1.558 3123 1.18 0.67 0.71 2.56 069 0.43 Fiekl Cu!tNator 47 Ft 2604WD 25,155 3190 4,~ n.66 1.14 0.88 017 2.29 0.72 0.41 used. They include fuel, lubrication, use-related estimate of the number of hours a commercial T.Dlem D6k 11ft Pqj 60 5,468 6.40 640 27.02 1.48 1.30 1.43 411 0.96 O.SO repairs and labor charges. farmer would use that particular machine in one Tandem Disk 15 Ft Rift! IOSMfWD 10,838 8.73 873 40.74 1.76 1.85 I.OS 4.67 1.16 0.64 T.Dlem Disk H.D. 12 Ft Rigid III W'Ml 8,562 6.98 698 42.09 2.88 1.84 131 6.03 1.57 0.99 Overhead Costs year. 0.53 5.56 1.74 1.09 T¥Idem Disk H.D. 30 R Fold 3604WD 27,759 17.45 1.745 97.11 2.71 2.33 Time-related costs are prorated over a 12- Labor is charged at an hourly wage rate, 005et Disk 12 Ft IOSWWO 8.591 5.56 556 36.40 2.76 2.13 1.65 6.54 1.51 1.00 year economic life. Salvage values are estimated which includes 30 percent of benefits factor. Offset Disk 16 Ft 130MfWD 10.738 7.42 742 4415 2.71 2.02 114 5.96 1.42 0.93 005et Disk W!fg 21 Fl 2OOt.f\W 19.165 9.74 974 64.07 2.96 2.68 094 6.58 1.73 1.09 based on procedures suggested in a February Charge rates are $9 per hour for unskilled labor 225MFWD D,OO 10.66 1.066 75.65 130 2.93 0.86 7.09 1.77 1.12 Offset Disk WIlQ 23 Ft 1995American Journal of Agricultural Eco- and S11.50 per hour for skilled labor. Labor per Y:.I\mr 25 O.c. 14 R 2OOt.f'M> 11,874 8.65 865 53.86 333 1.83 1.06 612 1.89 111 nomics article "Depreciation Patterns for Agri- acre for an operation such as plowing or disking V-RP' 25 O.c. 18 Ft 2604WD 17,271 11.13 I,m 70.68 146 2.06 0.83 6.35 1.90 114 ~ J) O.c. 12:5 Ft 160f.f\W 8.121 7.73 m 43.84 106 1.42 1.19 5.67 1.64 1.10 cultural Machinery," by Timothy Cross and Gre- is calculated by using the work rate on the imple- V-RP'300.C.I7Ft 200MFWD 10,279 10.51 I,OSI 51.98 2.74 133 0.87 4.95 1.51 1.01 gory Perry. Salvage values at 12 years of life ment. Less labor per acre is used in a disking coot iii CtAtklccIp 16 Fl 160t.f\W 18,075 11.54 1.154 59.11 2.05 us 0.&1 5.12 1.38 0.73 coot FkICult klcorp 26 Ft 2604WD 25,494 18.03 1,~3 85.00 2.14 2.07 0.51 4.71 1.32 0.76 now range from 18 to 50 percent. Producers are operation that covers more acres per hour than COib £liSt & ~ 125 Ft 225 MPM> 17,437 6.44 644 67.95 5.47 3.66 1.43 10.55 2.73 1.85 keeping machinery longer than in the past. in a plowing operation. corm-DiSk&V~ 17.5 Ft 360 4WD D,396 9.02 902 88.29 515 153 1.02 9.79 2.93 2.12 Managers, striving for cost control, are some- Several reduced and conservation tillage Q (lit f"riSh 22 Ft 2OOWWO 18,544 9.79 979 63.64 2.95 2.62 0.94 6.SO 1.71 I.m times buying a second item "twinned" to one o&.FkI C~ Filish IIFt 2604WD 26,648 15.45 1.545 84.26 2.49 2.36 0.59 5.45 1.40 0.89 implements were added to the database. Mini- ~Diag30Ft 60 7.453 21.64 649 45.09 O.~ 1.20 0.45 2.~ 017 0.15 now in use. mum tillage planters are included. These reflect Dr 48Ft 75 9406 34.62 1212 51.29 035 0.85 0.28 1.48 011 0.11 Purchase prices are discounted from manu- the current interest in reduced tillage practices. Row Crop Planter 6-30 60 15,040 7.00 490 49.14 1.36 3.76 1.91 7.02 1.12 0.45 facturers' list prices. A 10 percent discount off list These estimates will not represent any given 75 20.290 933 653 60.77 I.ll 3.79 1.43 6.51 1.10 0.43 Ra.w CrQl1 Ranter 8-30 price appears "normaL" The tables include some individual's cost. They can still be used to help Row Crop Planter 12-30 IOSMfWD 32,637 14.00 980 85.45 1.10 4.05 0.95 6.10 1.02 0.40 Ittn- TI PIaier 6-30 75 D,I60 636 509 61.47 1~ 5.66 2.\0 9.66 1.76 0.62 adjustment for sales taX,delivery and setup. An plan the cropping operation if more specific data t.tn-'Ii Planter 8-30 IOSMFWD 27,640 8.48 594 76.51 1.81 5.63 1.57 9.02 1.54 0.66 equivalent price adjustment for the income tax are not available. Differences in buying power, "TlAill812.3Q 160KflM> '4599 12.73 \,273 98.11 1.86 4.M 1.05 7.71 1.~ 0.67 expensing option is not included. Insurance is 0.85 repair programs, average annual use, and overall Mn-'Ii Planter 16-30 200MfWD 63,994 12.73 1,655 112.92 2.27 5.56 1.05 8.87 2.52 0.83 Patato Row ~ 6 RIM 160~ 17,271 7.47 321 81.00 3.17 5.77 1.91 10.84 1.55 1"1 percent of new cost. A housing charge on average replacement programs should be considered Potato Row Marter 8 Row 160MfWD 21,588 10.79 464 91.91 2.19 5.00 1.32 8.52 1.10 0.79 investment of 33 cents per square foot of shelter when making adjustments. Beet Pl.J1t« 12 RoW IOSWVtU 27.345 4.67 2~ 83.06 319 11.45 3.06 17.~ 2.70 1.19 space needed per year is made. Machinery costs are substantial; control of Grail Ori 25 Fl 130MfWD 25,674 10.61 848 72.96 1.89 3.78 110 6.88 1.37 0.65 WilO1f35Ft 160J.f'MJ 34,947 1.4.85 1.188 90.~ 1.59 3.66 0.86 6.12 1.27 057 A 6 percent "real" (inflation-adjusted) them is important. Custom charges are often Pressv.tleeI 00116 Fl IOSMfWD 21,794 6.79 509 63.77 2.26 5.25 1.88 9.39 1.74 0.82 interest rate is used in the cost estimates. This based upon machinery costs. No one should I'ressvhel [)i 20 Fl l30t.fWO 24,365 8.48 636 72.76 2.37 4.70 I.SO 858 1.66 081 PressM 00130 Fl 160Mf\W 37,435 12.73 1,018 94.54 1.86 4.57 1.00 7.43 1.53 0.67 real rate is calculated by taking a nominal rate do custom work unless the charge will cover 2604'M> 15.27 133.18 2.52 536 0.84 8.72 1.89 0.90 AI 5eedefl)l36 Fl 52.926 1.222 charged by lenders, minus a measure of the operating costs plus a return for one's risk and No-T~ DrillS Fl 130MfWD 27,097 6.36 509 74.86 3.16 6.60 2.01 11.76 2.35 I.m inflation rate per year expected over the .years time. In the best scenario, all allocated per lb-11 0tI20 Ft 160t.f'M> 40,136 8.~ 679 98.49 2.79 7.32 I.SO 11.61 2.38 1.00 Ma ntenance E I nt acre or hour overhead costs should also be Cultivator 6-30 60 3.784 7.73 773 D.71 1.23 0.63 1.21 3.07 0.67 0.41 covered by anyone offering to do custom work. Coomor8-30 130t.f'M> S,39S 10.30 1,OJ) 36.35 1.95 0.67 0.91 3.53 0.91 0.67 CultiVator 12.30 160Mf\W 9,981 15.45 1,545 45.40 1.53 0.80 0.61 2.94 0.80 0.55 The market for custom work usually does not CI6ator Hi Res 4.36 75 5,819 6.18 618 28.77 1.96 1.17 1.53 4.65 1.09 0.64 cover all costs. The market is usually some- Cultivator Hi Res 8-30 I60MFWD 10,800 10.30 1,030 46.31 2.30 119 0.91 4.SO 1.22 0.82 where in between the operating costs and the Cultivator Hi Res 12.30 225t.f\W 18,318 15.45 1,545 68.41 218 1.45 0.70 4.43 1.16 0.77 Rotary Hoe 21 Ft IOSMfWD 5.473 25.96 2,596 32.72 0.59 0.31 0.36 1.26 0.31 0.21 total of operating plus allocated per acre or Rotary Hoe 30 Fl 160t.ftW 37.09 3.709 45.05 0.64 0.32 015 1.21 OJ3 013 8.351 hour overhead. Potato Cultivator 4 Row 75 4,112 5.36 778 25.75 2.25 O.~ 1.75 4.80 1.29 0.74 The following tables provide the 1997 ma- ~ Boom Sp-¥f 47 Ft None 49,464 25.92 2.592 89.21 0.00 2.89 0.55 3.44 0.92 0.00 Sp-ayer 30 Fl 40 4,009 15.36 1,229 28.78 0.45 0.49 0.94 1.87 OJI 0.14 chinery function costs broken down into several Boom Sprayer SOFt 60 5.088 25.61 2.561 32.17 0.37 0.32 0.56 1.26 0.26 0.12 categories. Some relevant supporting data also Sprayer Hi Pres SOFt 60 21,382 23.64 2,364 56.63 0.40 1.39 0.61 2.40 0.62 0.13 are included .• ~Awl.3OFl 160MfWD 16,653 12.73 509 88.63 1.86 4.16 0.94 6.96 1.53 0.67 Fert Sprd 4 T/4OFt 60 8,636 23.76 713 56.15 0.40 1.46 O.SO 2.36 0.37 0.13 Rock Mer 6 Ft 75 11,255 1.42 85 SO.85 853 19.71 7.62 35.85 8.52 2.~ Harv u Formulas used to compute machinery overhead costs Mlwef.(ooditiorlef 9 Fl 40 11,484 4.36 349 34.79 1.58 4.13 2.27 7.97 1.13 049 Rotary Hay Mower 6 Fl 40 5,643 2.91 291 25.52 2.36 3.32 3.09 8.77 2.15 0.73 purchase cost - salvage value RotaIy Mow{ond 9 Ft 75 14,318 4.36 349 43.91 2.n 5.13 217 10.06 I.~ 091 Depreciation, S/year = Hay Rake (Hyd) 9 Ft 40 3.735 3.49 698 19.10 1.97 0.92 2.58 5.47 1.13 0.61 Hay Swilher'(ond 12 Ft 60 35.387 5.82 465 85.14 1.63 11.45 1.55 14.63 3.76 0.55 years you will use machine None 7.76 621 IOS.58 0.00 12.84 1.16 14.00 3.68 0.40 Swather.(ond 16 Ft SeIf.flrop 51,353 Grail Swather 18 Ft Nlljpe 75 9,612 8.73 698 40.24 1.39 219 1.03 461 1.17 046 purchase cost + salvage value Grain Swather 21 Fl NI Type Grail Swather 21 Ft Se1f-Prq> Nn 75 14,169 43,177 10.18 10.18 815 815 48.86 93.73 1.19 2.73 000 8.32 0.88 4.80 088 921 1.22 2.40 0.39 030 Interest, S/year = X "real" interest rate Hay 8aIer Pto T\Wle 40 12,500 3.78 756 32.81 1.82 3.48 3.38 8.68 2.48 0.56 2 Ilcud Baler IlXXllb 60 14,549 3.01 603 41.14 3.15 718 3.31 13.65 6.07 1.~ RouOO Baler 1500 lb 60 17,856 4.64 927 46.05 2.05 5.73 2.15 9.93 4.63 0.69 Rd 8aIeuWr~ IlXXlLb 60 20,483 101 603 49.90 3.15 10.09 3.31 16.56 796 I.~ purchase cost + salvage value Rd Bale Wrawer Siage 60 16,335 2.48 372 42.32 3.83 9.60 163 17.05 6.76 1.28 Insurance, S/year X insurance rate 8ile 'Mawer DIy Hay 40 7,042 2.48 372 2612 2.n 4.17 163 1056 3.36 085 Forage Hatvester 2 Row 105MfWD 19,787 1.65 165 52.63 9.29 14.80 7.72 31.81 6.13 3.36 2 Forage SP HaMtr 2 Row None 132,323 2.04 305 124.36 0.00 54~ 617 61.07 625 2.41 large Forage ~ 60 4,919 1.00 SO 29.61 9.SO 11.11 9.00 29.61 5.OS 3.18 Housing, S/year price per sq. foot X sq. feet shelter space required Contile Grail Head IS' CorntR SInaI 9,600 5.09 1,018 86.37 13.16 1.30 2.51 16.97 5.74 193 CorrtJile Grail lid 21J Conm Med 12,050 6.79 1.358 98.81 11.45 1.22 1.88 14.56 5.01 1.68 Taxes per year o (no taXes on personal property in Minnesota) Contile Grail HNd J1 Contile lq 16,750 10.18 2.036 112.87 8.70 1.13 115 11.09 4.56 32.79 3.89 10.76 135 3.SO Com Conm 4-30 Corrm SInaI 17,579 2.&:1 560 91.~ 2192 4.30 ComContile6-ll Combilt Med 23,4SO 4.20 840 106.61 13.51 3.83 304 25.38 841 2.71 Corn Conm 8-30 Combine Med 28,140 5.09 1,018 109.85 15.27 3.80 2.51 21.58 7.04 2.24 Estate tax hearing Corn Coom 12.J) Sugar Beet lifter 4 Row Coom lq 43,350 100MfWD 42,2SO 7.64 3.47 1,527 277 131.02 113.69 11.60 3.88 4.44 24.69 167 1716 3.68 32.81 5.59 9.76 1.80 1.61 er passed away. "1 was like a dazed deer looking into S enators heard heart-wrenching stories recently of families desperately trying to hold onto farms and businesses in the face of ruinous estate taXes.The headlights," Ferris said. "I said, 'How could this be? We own this land. We paid this land off, '''she told Sug¥ 8M lifter 6 Row Sugar Beet Tc.wer 6 Row SugM Beet ~ 12 Row l60t.fWO Suc.Jar Beet Wagon 8 Ton 1» t.fWl) 75 75 55,100 16.756 32.382 8,944 5.20 5.33 10.67 3.47 520 427 853 277 131.77 52.22 90.36 35.18 3.86 19.02 2.27 5.37 211 5.18 3.49 4.07 20'5 25.34 2.16 9.79 t.m 2.60 10.15 8.47 8.90 1.97 187 2.10 1.33 0.75 O.M 1.15 Senate Finance Committee was hearing testimony on the committee. Ferris said the accountant explained Sug¥ Beet Wagon 20 Ton 2OO~ 35,620 5.20 520 8323 5.54 8.73 173 1601 3.93 21M MaIm Sp-eader ISO 8u 75 5,324 3.49 349 31.51 3.46 2.93 2.63 9.03 2.67 1.14 a bill that would lower estate taXes,which proponents to her that upon her mother's death, the heirs MRft 5p'Hder JXl ~ lOS~ 7,284 149 349 38.55 4.40 4.01 2.63 II.IM 3.40 1.59 say would help family farms and businesses survive would be liable for $3.3 million in taXes on an oper- Maoore Spreader 400 8u 130MfWD 11,558 4.65 465 51.39 4.31 4.75 1.97 11.04 3.58 1.48 ation grossing only $350,000 annually. Gfll'lly Grail Box 185 Bu 60 2.262 1.65 215 21.34 5.74 1.72 5.44 12.90 2.92 1.92 and promote traditional values. 5.44 14.90 3.69 2.40 Gflt'ity Grail Box 240 8u 75 2,930 1.65 215 24.65 7.31 2.15 Idaho rancher Lee Ann Ferris told the commit- Ferris then talked about costly estate planning, BaIl!d ~ '&1gon 40 2.723 118 945 27.~ 1.82 0.58 4.76 7.16 0.99 0.56 tee that hours after her father's 1993 funeral, she part of which involved buying a life insurance policy forage Wagon 16 Ft 40 10,279 1.65 215 26.77 4.16 6.59 5.44 16.18 3.23 118 experienced the second most devastating event of for her elderly mother solely for the purpose of pay- 'JoIII CIIt,. hoar i ..... ,..., ................. haling and fIpIin chidId br haan lIIIlI,.,... ....... 1IIlI,.._ F1III.Iu11rian1s IIlIII*r _1lIdId lit .. IDIIL her life when the family accountant told her there would be no way to keep the ranch when her moth- ing off a third of the estate taX. That would still leave the family with a $2 million-plus tax bill, however: • allis ........ 'JoIII GIlt,... i_GIlt ,. hoar chiIId br ~..- ....... _ CIIItIIaI. ~ as,. haur. hUM apnIng ..... ....... ,.... ~ Wa.1IIlI.... ................ GIltS. 1IUl1lllt IIbat Lari Imd"'" 1~~I~'I:t~ April 30, 1997 analysis and display of all me information collected by within the grid sys- me various components of precision agriculture: grid tem. Information sampling, yield monitors, field scouting, etc. GIS soft- from an analysis of ware processes this dara to create detailed maps (or each soil sample graphs and reports) that allow me farmer to see all forms the basis of an me variables affecting yield in a panicular field or in extensive database specific areas of me field. that documents such Understanding Differential correction variations as nutrient The Department of Defense scrambles signals level, soil type and precision ag terms from its global positioning satellites. Uncorrected pH across an entire by Perry M. Petersen, Manager-Precision GPS signals result in location errors that may range field. GIS converts Agriculture, Terra Industries Inc. from 50 to 100 yards. Differential correction uses a this data into a map G rowing-numbers of farmers are implement- ing precision agriculture technologies (0 col- lect derailed, site-specific dara abom meir land and GPS receiver at a fIXedlocation to make the GPS signal more precise. The fIXedreceiver compares its known location with the scrambled satellite sig- that provides a de- tailed picture of soil conditions. This al- crops. However, other farmers are trying to decide if nal and then broadcasts a corrected signal, which is lows a farmer (0 be- precision agriculture is right for meir crop manage- picked up by a GPS receiver on a trac(Or, combine gin identifying and ment systems. While sorung mrough information on or other equipment. A corrected signal is accurate managing a majority Using precision agriculture systems can improve yields while reduc- precision agriculrure, ir's easy to get confused wim (0 within 1 to 5 feet. of the variables in the ing input costs. A rising number of farmers are using high-tech tools me new terminology. Here is a summary of terms Yield monitoring field with precise to gather data about their land and crops. commonly associated wim precision agriculrure. Site-specific yield moni(Oring is accomplished applications of fertil- Global Positioning System (GPS) during harvest when a combine is equipped with a izer, lime, micronutrients, seeding rates, pesti- Cropping systems adviser (CSA) GPS is a nerwork of satellites controlled by the yield monitor and a global positioning system. As cides, etc. Terra employees help farmers analyze and use U.S. Department of Defense that helps ground- the combine moves through the field, yield dara is Variable rate technology (VRn me information precision agriculture generates. based units determine their location in latirude and matched at regular intervals wim location informa- VRTenables a farmer (0 do something about The CSA provides a link berween the massive quan- longitude. This technology helps a farmer rerum to tion. A geographic information system uses the the variances he sees in yields and soil conditions. tity of dara collected about a farmer's cropping an exact location to measure soil fertility, weed and yield;1ocation information to create a map that VRT uses compmers, controllers and GPS to auto- system and his need to put mat information to insect pests, and yield. It also allows a farmer to visually shows yield variations wimin a field. matically vary application rates of crop inputs while work. Terra's CSAs analyze, main rain and use this track and record where a GPS-equipped tractor, Grid soil sampling equipment travels through the field. That means information to create cropping prescriptions for applicator or combine has traveled within the field. GPS technology allows a farmer (0 accurate- rather man applying fertilizer, crop protection prod- customers. Working with personal computers and Geographic Information System (GIS) ly map the outline of a field and to divide it into ucts or seed at the same rate across an entire field, specially developed sofrware, the CSA helps farmers GIS involves computer hardware, software and grids no larger than 2.5 acres. GPS also precisely the farmer can precisely place crop inputs where achieve the most benefit from Terra's precision procedures designed to support me storage, retrieval, "marks" the location of each soil sample taken they will do the most good. agriculture services .• United Nations calls for 'new water ethic' U nited Nations Education, Scientific and Cul- tural Organization Director-General Federico Mayor called on the international community (0 adopt a "new water emic" in me face of decreasing world water supplies. Mayor asked participants at me JUSTA FEW World Water Forum in Marrakesh, Morocco to ratio- nalize water use (0 avoid dramatic water shorrages. "The warning signs are clear ... severe water MORE SFASONS scarcity in many regions of the world, falling water tables, shrinking rivers and lakes, widespread pol- Imion and creeping desertification," Mayor said. "To avoid a water crisis in (he future, we have (0 urgently address (he problem a( source, (0 pro- mote a new anitude to water ... (0 establish a new water ethic." AND HE'LL In the face of a world population projected at 8.5 billion by the year 2025 - up 3 billion over the current 5.5 billion - Mayor said water demand BE OFF TO COLLEGE ... across the world will continue to increase. He said water resource development and management must be placed at the top of national and interna- tional agendas "as part of a global strategy." Mayor noted that total water demand this century has increased at rwice the rate of population growth .• BEITER CALL YOUR FARM High-level ag talks BURFAU INSURANCE AGENT may be in the works RIGHT AFfER THE GAME. W hen President Clinton and Canadian Prime Minister Jean Chretien met, at what some in Washington, D.C., called the "feel-good summit," By starting now, you can give your agricultural trade was expected (0 be a (Opic of discussion, according to Agriculture Department family the kind of future you want them officials. No meetings on agriculture trade were to have... a future that includes college, a formally scheduled. paid-off mongage, and enough money to A U.S.-Canada meeting on trade may be scheduled in the next month to begin the process keep the family together. of ironing out several issues the rwo trading part- Even if something happens to you, ners have with each other. Several points of dis- a plan from Farm Bureau Life Insurance agreement under me agriculture umbrella have made headlines over the last year, including Cana. of Michigan can make sure your dreams da's system for exporting grain, its wheat shipments live on. (0 the United Srates and import restrictions on U.S. We are the only Michigan-based dairy and livestock products .• company named one of the top 50 Meat talks return to outstanding life insurers in America, face-to-face meetings based on safety, security, and fmancial fter burning up trans-Atlantic phone and fax A lines for a couple days, European Union agriculture officials returned (0 Washington, D.C., (0 performance. Call your Farm Bureau Insurance agent today. resume face-to-face negotiations to resolve a dis- pute over meat inspection equivalency. The dispute has escalated (0 the point where Making your future more predictable both the United States and EU have banned meat imports from the respective panies. Minus an agreement, USDA says it will decenify 100 meat plants as safe for processing meat for export (0 the United States. Some insiders speculate poultry inspection ";2!.fiJ ... fWi1U1LW FAR. BUREAU INSURANCE IIlITIlAI. • fWlIOtWl un • fWi1U1LW GlllWi. • Fa AlINlID issues may be holding up an agreement by the rwo panies. EU officials slapped a ban on U.S. poultry imports that USDA says could cost the domestic poultry industry S50 million in lost revenue .• ~~IL'I=\'ill April 30, 1997 Prob<1bility of Above Higher Prob<1bility of Above PrObClbility of &>low Higher ProbQbility of Below PrObClbility of NormCll Higher Probability of Normal EquCll ChClnces W .. 11/ lIIe•.. ~.J ..Jel ' \l ' aL r_IJI) 1 A n arctic-origin area of high pressure brought into Michigan and the Great However, some sensitive crops such as tree fruit may have been damaged, especially in southern MiChigan Weather Lakes region by northwesterly winds aloft led to parts of the state, where crops were more phe- Summary O.tI•• k unseasonably cold temperatures across the state on the mornings of April 8-10. Minimum temperatures across the state fell into the teens in most crop areas, although nologically advanced. Northwesterly flow aloft and colder than normal weather is likely to continue for the next few weeks. Beyond that, however, the National ~ 3/16197~1 5/97 Houghton Marquette Tetnpemln Cbs. De¥. from IllUn 29.3.(J.7 27.1 -1.5 nomIII Growing DeQree o,ys PncipitItion ActUal fbllIIl kx.. 3 10 kx.. 14 14 AL1ual NonuI (inch) 0.83 1.23 fIlCh) 2.01 2.01 some lows in the single digits were reported Weather Service long lead outlooks are less cer- Sault Ste. Marie 27.0 -3.4 3 3 2.10 2.12 lake City 33.4.(J.7 28 21 1.13 2.16 on the 10th. Unfortunately, the cold weather tain, calling for near equal probabilities of be- Pellston 30.2 -1.4 15 21 0.76 2.16 came immediately on the heels of much above low-, near-, and above-normal temperatures and Alpena 30.7 -3.0 15 15 1.68 2.11 normal temperatures, and, in some parts of the precipitation. Houghton lake 32.3 -2.6 25 15 2.09 2.11 Muskegon 37.3 -1.1 35 34 1.48 2.47 state, some early phenological crop develop- While recent below normal temperatures Vestaburg 37.9 .(J.9 54 37 2.70 2.24 ment occured. have slowed development of overwintering Bad Axe 36.6 .(J.9 42 38 1.42 2.03 by Dr. Jeff Andresen, Just before the cold, seasonal base 42 F 0 crops, below normal precipitation since late Saginaw 38.8 0.2 52 38 2.97 2.03 Grand Rapids 38.7 0.1 45 56 2.15 2.71 Agricultural ~E type growing degree day accumulations had March has allowed upper layers of the soil pro- South Bend 42.2 0.5 80 56 2.15 2.71 Meteorologist, increased as high as 80-120 GODs across south- file to begin drying out, which in turn should Coldwater 4O.4.(J.7 58 54 4.23 2.50 Dept. of Geography, lansing 38.2 .(J.5 52 54 2.27 2.50 ern sections of the state, with lesser accumula- soon allow spring field work, especially on Detroit 41.1 0.7 63 50 1.93 2.60 Michigan State tions elsewhere. For most crops, the impact of lighter soils .• Flint 37.8 .(J.9 49 50 2.24 2.60 University the cold temperatures will be insignificant . Toledo 43.9 2.5 87 50 0.90 2.60 • • • 00 eo Insuron(e ISno 0((1 en • Member Health Insurance ,,----; ~ from Michigan Farm Bureau;:JIJ ~ 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. r!!r/5\. 1'"'\ f:-:- ~~';:1, ~'I o 1,1 ~~~.,a \: . ~'~ " ..~ ", rl~~;;~~~;~;~~~~~:~~~~~~~~'1 OR MAIL THIS COUPONTO: MFB HEALTH SERVICES,P.O.BOX 30960, LANSING, MI 48909 1 Individual/family coverage - for people who don't have employment-based coverage. 1 1 Small group coverage - for farm and small business owners. 1 1 Medicare supplemental coverage - for seniors over 65. 1 1 NAME 1 1 ADDRESS 1 1 CITY STATE ZIP ~1 L ~-I ~. MICHIGAN 1 TELEPHONE COUNTY ~ ••• FARM BUBEAU ~ 1~'I:t'~ April 30, 1997 The apple blossom 100 years as state flower And • pIllr of Intriguing people who Wtlliam Harris, of Norwood, a shoreline community desk and chair and decorated them with her blos- helped make It so south of Charlevoix where Grand Traverse Bay merges soms. Both the House and Senate agreed that nam- O ne hundred years ago this April, the scent of fresh apple blossoms filled the state Capitol. Legislators took notice. They named the apple blos- into Lake Michigan. Harris migrated from New York state with his parents as a four-year-old in 1836 and settled near ing the apple blossom as the state flower was a good idea. The process was completed April 28. Harris acquired the nickname 'i\pple Blossom som Michigan's state flower. Battle Creek in Michigan Territory. Thirty years later Wtlliam" for his role. Mrs. Woodcock later learned April 28, 1997, marks the l00h anniversary of he moved north with his young family to open a how to make silk apple blossoms, enhancing her own this official designation. boarding house for dock and sawmill workers in Nor- reputation as "the apple blossom lady," and practiced Two citizens had eminent roles in the story wood. Subsequently, he was a postmaster and long- her art into her 90s. behind this tribute. One was a northern Michigan time township supervisor before being elected to the A century after passage of the 1897 resolution, legislator with pioneer roots in Michigan pre-dating state House of Representatives. He became so in- Michigan residents can still be gratified that the state statehood in 1837. The other was a distinguished 63- spired by the beauty of a large apple orchard across has such a flood of apple blossom beauty each year to year-old woman who pushed a wheelbarrowful of from his home that he decided such lovely blossoms signal a new growing season and a pending bountiful apple blossoms down Lansing's Capitol Avenue and should be adopted as the state flower. harvest of apples by the next autumn. made the Capitol atmosphere fragrant. His resolution, introduced Feb. 9, 1897, mean- Many people make special springtime trips to The language of the 1897 resolution naming the dered through the legislative process for a couple of apple regions specifically to take in blossom time, in- state flower suggests that little has changed in 100 years. months. The final vote still hadn't been taken when cluding the Blossomtime Festival in Benton Harbor and It pointed out that "our blossoming apple trees add apple trees burst into bloom around mid-April. St.Joseph, scheduled this year for April 27 to May 4. much to the beauty of our landscape" - a still-true One colorful site during this early spring was Kent County with its heavy concentration of orchards statement as 58,000 acres of commertial apple orchards the yard of Anna Eliza Woodcock, two blocks north north of Grand Rapids, is the state's leading apple pro- and thousands of home-grown apple trees attest. The of the Capitol. She later told a reporter she knew ducer. The Lake Michigan shoreline from Berrien Coun- aroma and delicate beauty of apple blossoms help the vote on the state flower was due and was so ty in the south to Rep. Harris's home territory north of make springtime in Michigan a special experience. taken by the beautiful new blossoms on her Snow Traverse City provides exceptional growing conditions The resolution also noted that "Michigan apples around a billion pounds of apples each year, making the apple trees that she decided to cut off a few and for apples. Other pockets of scenic orchards are scat- have gained a worldwide reputation." This long-running state not only a national, but a gIoballeader. trundle them in a wheelbarrow to the Capitol. tered across the interior of the southern Lower Penin- renown is as strong as ever. Michigan now produces The man who introduced this resolution was There she located House Speaker William Gordon's sula, including many a short drive from Detroit. • Check out field sprayers before the crop season begins • Test valves, gauges and hoses for leaks; clean tip all nozzles. The rule of thumb is that the nozzle R ecent surveys of on-farm field crop sprayers show that about two-thirds of them are either under-, or over-applying pesticides at least 10 per- They recommend the following steps be taken: • Look for wear and tear. strainers and check nozzle gaskets. • Make sure there is uniformity in flow rate among flow rate should not deviate more than 5 percent from the specified flow rate. Use an oil-filled cent of the time . • Look for obvious damage in the frame, boom, gauge to check for the proper pressure at the Under-application can mean insufficient running gear, tank and hoses . nozzle tip, not at the pump, control or tractor. pest control; overapplication can mean a waste • Replace screens, hoses, gauges and valves that • Make sure that the pump pressure, ground speed of expensive pesticide, crop injury, environmen- have been damaged or show signs of failure. and nozzle flow are synchronized. Otherwise, the tal damage or perhaps liability because of exces- • Check nozzles for obvious wear or damage and sprayer application rate will be inaccurate. sive spray drift. replace as appropriate. When replacing nozzles, Details on sprayer calibration are contained in Bob Wilkinson, Michigan State University Ex- buy spares to avoid delays in the field and buy an Chemical Applications in Agriculture (NCR 520), tension agricultural engineer; and Ned Birkey, MSU extra one for recalibration purposes later. available through the county MSU Extension office Extension agricultural agent, say that careful calibra- • Check for leaks, cracks and uniformity. or from the MSU Bulletin Office, lOB Agriculture tion should follow a thorough conditioning of the • Check the sprayer pump for cracks in the hous- Hall, MSU, East Lansing, MI 48824-1039. The cost is sprayer for the coming season. ing or leaks around seals. $2.50. Make checks payable to MSU.• Pump up the value of vacation dollars and have more fun with Farm Bureau's theme park discount program. How does Walt DisneyWorld, SeaWorld or Cedar Point sound? Or the Detroit Zoo, Pleasure Island or the Henry Ford Museum and Greenfield Village? With your Farm Bureau membership, you can receive discounts on admission for these parks and many more. For more information, contact your county Farm Bureau or call 800-292-2680, ext 3237. Don-t forget to book your trips with Farm Bureau Travel. ',. April 30, 1997 -.' ,.'.... -.I " "" •• ""C' ~.l Sign-up underway for new cost-share program focused on environmental quality Environmental Quality Incentive the EQIP program is what the NRCS will define as a Program to distribute $4.2 million to large confined livestock operation," questions MFB environmentally conscious Michigan livestock Specialist Kevin Kirk, who also is a mem- EQIP Priority Areas producers ber of the technical committee which orchestrated -..... Revised M ichigan producers looking to improve or expand their operations while maintaining the environmental quality of their surroundings have a new USDA cost-share (he EQIP program in Michigan. '~ccording to the program, large confined livestock operations are ineligible for cost-share payments to construct ani- mal waste management facilities." - - - - -~ Animal Manure Areas -:~- program with $4.2 million available to share up (0 'The farmer will come in and sign up at the 75 percent of the cost. NRCS or Farm Service Agency (FSA) offices," Hardisty The newest USDA program, called Environ- continues. "Each priority area has a local work group t ~ mental Quality Incentive Program (EQIP), was creat- and a designated conservationist to go through a ed in the 1996 farm bill to provide cost-share fund- whole list of ranking criteria with all kinds of ques- ~~ ing to farms for up to 75 percent of the costs of certain environmental pro(ection prac(ices and tions about wha( environmentally is out there, what's existing and what's needed judge on a point system." N ~v - -..~-~ encourage producers to apply land management practices such as nutrient, manure, irrigation water, According to Hardisty the local committee comprised of key conservation partners in the I J L- - - .:::. - "'--- - I -1- - -J Eastern Thi mb - - - -- wildlife and integrated pest management. county may include the conservation district, FSA According to Natural Resources Conservation Service (NRCS) State Conservationist Jane Hardisty, county committee, Farm Bureau members and Extension personnel who will be charged with the \- ~ -- Ionia and Montcalm,~ .. - the EQIP funds will be divided into two categories - taSk of giving an environmental rating to the appli- geographic conservation priority areas and state- cation and those that are in the high rankings are . Ottawa and Kent ....:;;:- ~~ - - wide priority resource centers. "Each state deter- the ones that will get the cost-share dollars." ~ - ....r-\ 7 _0.. "/J .."" ./ ./ /.. u.- mined statewide priority areas looking at criteria 'The key thing to keep in mind before an 'I 1-\j'"j Uttle Rabbit River based on what their resource concerns are - soil application can really move too far and get a really and Red Run Drain ~~I l ~- -..-. -~- erosion, water quality, animal waste systems, basi- cally all the resources that comes with air, plants, water, soil and animals." "Michigan came up with six statewide re- high ranking is every producer will have to have a conservation plan," states Hardisty. "As far as our agency, we have not really been able to get out on the land and work with producers as much as we Upper Kalamazoo River _ 7r=~~- ~-F--- ~~ ~ -1--' source concerns," Hardisty continues. '~ybody in used to before the 1985 farm bill, because we were the state, no matter where (hey are located, if their so concentra(ed on writing just FSA compliance concern falls within these six areas, can apply for plans done in the office. How do you know what cost share money. Those six resource concerns are you really need and what will fit if you don't do integrated wildlife management systems, riparian some conservation planning? We are really pushing ~ Combined Land Areas corridor management systems, impaired-use water- heavy about the importance of conservation plan- for Fiscal '97 bodies protection systems, groundwater resource ning and our plan is getting out there - it may not Geographic Priority Areas protection systems, integrated conservation crop- ping systems and animal production management systems." Any producer in Michigan can apply under the just be us, there may be groundwa(er stewardship technicians doing it, there may be private consult- ing firms doing it. But no matter who does the plan- ning, it has to meet our standards and specifications - ~ ~ - - ~-~ six statewide resource areas, but farmers in 10 con- servation priority areas will receive a larger portion from our field office tech guide." What are some examples of ranking ~ N i~~-LL~~~ of the funds receniIy made available. 'Those areas comprise the St. Joseph River Basin, Crockery Creek Watershed, Saginaw Bay, Hu- ron and River Raisin ~tersheds, the Michigan aiteria? For example, one of the statewide priority resource concerns revolves around groundwater resources protection systems which has 14 practic- t N Bays De Noc Area ~ -r - P ......... -......-.- -.- ..... ,,..-'.r.ll ~ Maumee River ~tershed, Capital Area, Karst Water Quality Protection Area, Bay De Noc area, five special es to reduce the introduction of agricultural con- taminants to groundwater that are considered for ranking. Those ranking criteria include: I J ~ -.:::.---- L- - --- ~ -tI Saginaw Bay Area animal manure and the west coast specialty crop areas," Hardisty explains. "Based on tha(, 65 percent • Agrichemical containment facility \ I~r-o~ of that money is designated towards the conservation priority areas, because those are more of an environ- mentally sensitive area and the remaining 35 percent • Decommissioning abandoned water wells • Filter strip - animal Waste management • Fuel containment facility - above ground Cnxke