MICHIGAN FARM NEWiS : MICHIGAN'S ONLY STA~r;WIDE FARM NEWSPAPER' ,MICHIGAN FARM BUREAU' -- Michigll'S hlRest rolls /tIICHIGAN FAR/tl BUREAU October 30, 1997 Vol. 74, No. 18 IIOlgwltb record ,lllds Global Climate Change Treaty Economic analysis: Treaty threatens to impose severe impacts on farms T he higher energy prices that would ac- company measures to limit greenhouse gas emissions would severely affect farmers and ranchers. According to an analysis by the American Farm Bureau Federation (AFBF), net farm income nationwide could be slashed by 24 percent if the equivalent of a 25-cent gas tax were imposed and by 48 percent if a 50- cent tax were enacted. (The 25-cent scenario comes from a recent Commerce Department estimate regarding the treaty's impact. The 50-cent scenario comes from several industry estimates. The AFBF analysis used both, call- ing them the "low" energy price increase sce- nario and the "high" increase scenario.) "The high energy increase scenario has the potential for causing an economic down- turn in the agricultural sector that would paral- lel the experience of the mid-1980s," notes Terry Francl, an AFBF senior economist. Farm income would be sliced and land prices would fall, causing another "mini-de- pression" in the farm sector, Francl says. In- creased production costs would eat into profits With soybean harvest nearing completion, the total amount of soybeans harvested will produce over 74 million and jeopardize farm loan and mortgage repay- bushel, breaking the 1995 record by over 1.4 million bushels. Warm weather in early October sped the bulk of the ments. The "low" energy price scenario would soybeans to maturity. be less drastic, he says, but would probably induce stagnation in the farm sector, character- ized by low profits and slowly declining land prices over an extended period. Fifteen growers unite to CO_S18IY Warm temperatures Under both scenarios, the nation would see increased consolidation of agricultural form Michigan Apple Packers help crops mature for record yields production. Smaller-scale farmers, because of higher production costs, would be forced to Cooperative eather worries subsided somewhat sell to larger-scale producers. Younger farm- ers, or those who have taken on debt, "would probably find themselves in an unprofitable I t'sa problem every farmer may one day face. What do you do if • for Michigan farmers in early October when warm temperatures prevailed helping most field crops reach maturity levels. situation and be forced to abandon agricul- your equipment is be- By now, Michigan's record soybean harvest is ture," says Francl. coming outdated and complete. Soybean production, at 74 million bush- The impacts of higher energy prices vary the cost of replacement els, surpassed the 1995 record high. The yield aver- by commodity. While the increase, by percent- equipment is so high aged 39 bushels per acre, up 10.5 bushels from the age, of a 25-cent hike in fuel costs for wheat you have to look for previous year. This year's crop is estimated to be and cotton is similar, around 13 percent, it other ways to get the job over 55 percent above 1996. translates into a $7.29-per-acre increase in pro- done? On the other hand, U.S. soybean production duction expenses for wheat and a $35-per-acre That's precisely the was forecast at 2.72 billion bushels, down slightly increase for cotton. dilemma 15 apple grow- from the September 1 forecast but 14 percent For hog producers, an increase in produc- ers faced two years ago above the 1996 production. tion expenses from increased fuel costs seems along the fruit-growing Dry bean yield averaged approximately 1,650 relatively small, 4.9 and 10.3 percent for the ridge that lines northern pounds per acre, according to the Michigan Ag two scenarios. However, that translates into Kent County. Their solu- Statistics Service (MASS),which was a 10 percent slashed profits of 40 to 84.5 percent, depend- tion? Join forces to form Facing the challenge of using outdated equipment or buying expen- increase from 1996. ing on the fuel price hike. Michigan Apple Packers sive replacements, 15 West Michigan growers pooled their resources "Mid-September's cool and wet conditions "Livestock feeders and dairy farmers Cooperative, pooling to build a new state-of-the-art facility. dampened the dry bean yield prospects," ex- operate on a very thin margin," explains their resources to build a plained MFB Field Crops Manager Bob Boehm. FrancL "Relatively small changes in the cost of state-of-the-art packing facility and guarantee part of the best," Steffens added. "You don't want to put in "This year, black beans yielded much better than Continued on page 4 their production to operate it. anything that's outdated, and this was the best navies. The recent weather pattern dramatically "They had to commit a certain amount of equipment out there at the time." improved the quality of later-harvested beans; bushel per year to make this thing fly,"explained "The big difference between ours and another however, navy prices remain depressed due to Rob Steffens, president and grower-member of the facility is we have 85 brushes that really polish the the large carryover." cooperative. "We wanted to run at least a half-mil- fruit up and do an excellent wax job on the fruit," The warm weather was a real benefit to the lion busheL" he explained. "That is a standard washer/waxer in corn crop, which has been two to three weeks be- The $2.1 million, 42,500-square-foot facilitycan Washington state. That's what we wanted was some- hind the normal maturity all summer. The delay in handle up to 800,000 bushels a year and is the most thing comparable to what they do, because they do the first killing frost relieved many concerns about a technologically advanced packing facilityeast of such an excellent job out there." repeat to the 1992 disaster of high moisture and Washington, according to Steffens. It began handling The most advanced portion of the four-lane low test weight. apples in early September from its member-growers. sorting line, which runs the span of the 400-foot-long MASS estimates that Michigan corn yields "If you're putting in something new, you want Continued on page 4 Continued on page 4 INSIDE THIS ISSUE OF THE MICHIGAN FARM NEWS News in Brief 2 Duyck named 1997 Conservationist of EPAto push for tougher regulations .. 12 Capitol Corner 3 the Year 7 High-residue farming starts at Hiring employees? Here's what you'll Business Strategies 8 harvest time 13 need to know 5 Agricultural public policy tour Weather Outlook 16 conducted 10 Market Outlook 6 Anniversary of dean Water Act spurs Sell products and services in the Michigan Farm News classifieds-Page 14 ~~I~'I~rm October 30, 1997 alization commitments in agriculture. There is strong opposition by labor unions M5U-Ag Tourism Conference set for November and environmentalists to renewing fast-track trade authority. Labor unions want to require trade agree- H Ow about vacationers playing you to help you do work on your farm? Or what would you think of perfecting grandmother's special breakfast existing farms or natural resource operations. In fact, we're really interested in seeing how recreation/tour- ism can help preserve the state's agriculture and natu- ments to impose high minimum-wage requirements and other strong labor provisions on businesses in sausage and selling it worldwide? ral resource base." foreign nations. Environmentalists want trade agree- These possibilities will be discussed at a con- Mahoney said several speakers will detail how ments to impose rigid environmental programs on ference near Benton Harbor by people who are they got started in their tourism/natural resource foreign businesses. Unfortunately, these labor and doing just that. Others will tell how their similarly business and what steps they are taking to assure its environmental issues are not trade issues and only unique agriculture and natural resource business is continued operation. invite retaliation against the U.S. if included in trade a part of the existing farm operation. "Just about anything a person needs to know agreements. The Agriculture and Natural Resources Prod- about getting started in agricultural and natural So why is renewing fast-track trading authority ucts Tourism Conference will be held Nov. 5-7, in resources tourism, and being successful at it over. so crucial? Let's not forget two key points in the the Mendel Center at Lake Michigan College, Ben- the long term, will be talked about at this confer- - ensuing debate on fast-track. First of all, growth in ton Harbor. Conference registration is $85. ence," Mahoney said. From the international trade is going to happen, with or with- The focus will be on getting people in The program contains three tracts: getting out U.S. participation. Secondly, the U.S. accounts agriculture and natural resources and interested into the tourism/recreation market, creating a President for just 4 percent of all the world's consumers, in tapping into an industry with a 3 to 4 percent market for a product or offered experience and meaning we must rely on exports to sell a growing annual growth rate. guidelines on staying in business and remaining Fast-track trading share of our goods and services. 'This conference will show participants how profitable. Agriculture depends on exports for one-third of recreation/tourism can diversify practically any existing For a conference brochure and registration authority - good all sales. U.S. agricultural exports have more than dou- farm or natural resource operation," said Edward Ma- form, write to Michigan Ag & NRP Tourism Confer- for agriculture, bled from $29 billion in 1984 to $60 billion in 1996. honey, MSU Extension specialist in the Department of ence, Southwestern Michigan Tourist Council, 2300 good for you Much of this growth has been attributed to efforts to Park and Recreation Resources. "We are not interested Pipestone Rd., Benton Harbor, MI 49022. For more open markets through trade agreements and multilat- in being a pan of a venture that will displace or replace information, call (517)353-5190 .• C ongress is now considering legislation that is vital to the future prosperity of U.S. agricul- ture. The legislation, known as "fast-track" trade eral trade negotiations, increasing per-<:apitaincome in the rest of the world, production shonfalls in key re- CRPsign-up under way authority, would authorize the president and future administrations to begin new trade talks or negoti- ate expansion and improvement of existing trade gions, a weaker U.S. dollar and greater exports of value- added products. To guarantee the continuation of this trend, international market expansion must continue. T he Agriculture Department is currently con- ducting the latest round of sign-ups for the con- servation reserve program. Rules for land acceptance have their land accepted into the idling program. "I think we have a more consistent program nationwide and we're open for business," said Agricul- agreements with other nations. Since 1992, our competitors have negotiated have been altered from the last round and USDA ture Secretary Dan Glickman, who announced the During the negotiations, the president is re- 20 regional trade pacts without us. In every region personnel are focusing efforts on instructing interest- revised program that is expected to rectify the last sign- quired to consult with Congress and industry as of the world, this process continues. The costs of ed farmers on how to best apply for the program. up when more than 7.1 million acres were rejected by trade agreements are negotiated. Once a trade inaction are high. Canada has reached a trade agree- The sign-up, which will end Nov. 14, is focusing the program. Glickman said USDAwill be more re- agreement is finalized, the president must submit it ment with Chile that will provide an 11 percent on land most vulnerable to soil erosion and land that sponsive this time around and will help educate pro- to Congress. Public hearings are also held before tariff reduction on Canadian products. Every time is not ideal crop-producing ground. Farmers in the ducers about the application and land "rating" process. the U.S. House and Senate must vote to approve or an American company competes to sell to Chile, it Pacific Northwest will be given greater consideration "We were rather rushed" in the last sign-up, disapprove it in its entirety. will face an immediate 11 percent disadvantage. for proposing to idle land that is subject to wind Glickman said, defending last spring's enrollment. Recognizing the tremendous economic bene- Exports create American jobs. Today, more erosion--the idea is that air quality would benefit. "There was some belief out there that farmers did fits for U.S. agriculture, the American Farm Bureau than 11 million American jobs are supported by Producers who are willing to settle on "rent" pay- not get the information and technical assistance Federation voted recently to support legislation exports, including one in every five manufacturing ments below the maximum also will be more likely to that they needed." • authorizing fast-track negotiating authority for the jobs - good jobs, paying 13-16 percent more than president. But that support didn't come easily. Farm Bureau withheld its support until specific language non-trade-related jobs. Over the last four years, one-quarter of our economic growth came from ORGANIZATIONAL BRIEFS was included to address agriculture. Farm Bureau trade. If we are to raise our standard of living, we insisted the language direct the president to do the must continue creating jobs through exports. Volunteers needed for Traverse City outreach following when negotiating trade agreements: The United States has enjoyed the longest peri- • Reduce or eliminate foreign tariffs, subsidies and other programs that decrease market opportuni- od of sustained growth of all of our G-7 trading pan- ners. Over the last four years, we have created 12 mil- O ver 130 county Farm Bureau volunteers will be needed for the Traverse City School out- reach coordinated by the State Promotion and Educa- Insects as Friends or Foes" and the third-grade lesson is called, "Where Would We Be Without Seeds?" Vol- unteers are provided with a kit of materials and train- ties for U.S. agricultural exports. lion new jobs, more than all the other G-7 countries don Committee. The outreach will take place during ing. The training takes place on Wednesday after- • Develop, strengthen and clarify rules for effective combined; exports created 1.4 million of those jobs . the Michigan Farm Bureau state annual meeting on noon, Dec. 10. Ifyou would like to help educate dispute settlement mechanisms to eliminate practic- I would encourage you to contact your U.S. Dec. 11. The volunteers will teach a hands-on science students at Traverse City, contact your county Farm es that unfairly decrease U.S. market access oppor- representative and senators and ask them to sup- based lesson to second-and-third-grade students. Bureau office for a sign-up form or call Karen Stone- tunities or distort agricultural markets. Special em- port renewal of fast-track trading authority. We The 2nd grade lesson this year is "Understanding man at MFB, (800) 292-2680 ext. 3206 .• phasis must be given to import-sensitive products, would not simply be handing the president a blank including unjustified sanitary or photosanitary re- check, as some critics would argue. What we would strictions that are not based on sound sdence. be giving this president, and future administrations, Michigan Farm Bureau offering scholarships • Improve import relief mechanisms to recognize the unique characteristics of perishable agriculture. is the opportunity to negotiate trade agreements to make sure all of us benefit from future global trade S tudents enrolled at Michigan State University in a four-year or two-year agricultural major are eligible for two different scholarships from the • The scholarship is to be given to a student en- rolled at Michigan State UniverSity in the College of Agriculture and Natural Resources. • Take into account whether a nation participating in and economic growth . the trade negotiations has failed to adhere to the Sincerely, Michigan Farm Bureau. One of those scholarships, • This scholarship is available to a student after funded by the Marge Karker Scholarship Fund, pro- completing two terms in college and who has at ~~e,f~;~ provisions of already existing trade agreements with the United States or has circumvented obligations. vides $1,500 for a student enrolled in a two-year ag- least 25 credits left before completing their un- • Ensure that countries joining the World Trade tech program. dergraduate degree . Organization have made meaningful market liber- A $3,000 scholarship, funded the MFB Young • Students are encouraged to apply for this schol- Michigan Farm Bureau Farmer Trust Fund, is also available to students arship after their sophomore and/or junior year. - .... 1.... ~ .... "15-" ...................... ................... eo.- ...... ~ enrolled in a four-year program at Michigan State University in the College of Agriculture and Natural • The scholarship is to be applied toward tuition at Michigan State University beginning with the fall 11 11 . Resources who can meet the following require- semester following receipt of the scholarship. ~;::.""'" ........ .......... - --.....----...-...--- IIl~ __ oa.lII - -- _-=,,,=,:':=0..-.. .., ..... _0.. -......"..--- -.-,. ..... a.~,... ..... ...., 44 ......... ott ments: • The student to receive the scholarship (male or • The applicant should have a scholastic average, as indicated by Michigan State University, of2.6 :::~=--~-- ~;::.""- r_ .. female) must be from a Farm Bureau family, or if married or 21 years of age or older, have hislher or above on a 4.0 scale. To request an application, contact Julie Chamber- .:--=.. '.0 ,-- .... •~ _., .. - J.tl' ~~F~1"!~:?~ WJ ~ ..... ...-. .- 1. own Farm Bureau membership. lain, manager of Michigan Farm Bureau's Promotion P.o. ....... "='a:.:"'~ ;~. .... -::-' ......... .- -- ............ .."., .. -- • 41.OM • The student should be prepared to show finan- cial need and applicants are encouraged to file a and Education Department at (800)292-2680, ext. 3213. The Scholarship Committee of Michigan Farm Bureau financial statement with the Scholarship Office at will interview top applicants. Applications must be Michigan State University. completed by the Dec. 1, 1997 deadline .• :~~- --- r ----... -... .......-... -................ - .-..-- ..- -- ............... • __ •.--.._ ~4' .. _ ... ..~.====--.,.. .. MFB Thanks Rep_Smith for income averaging bill .-~~_~_ .._J::~__ t =:- __ _ ,..~....., ~ I ... a. ==-~..:~==-=--:-.=.=-.:'..-:::.-=---:::~.=::.'==~ III_ ...... _ ...., •• ~~ " .. _., ~ .. .=:.=::---==:::=:==--~-==--~~ ..... .. ~_ -.-.~~ 'l , t ....... -. _ ....-.....--... ..~ .... ~ ............. c:a.... .. II o "- 0I00IilII - .................. ~~,......"--.",..,.. .... .,-.. ,,-,- .. _--. ~ .... 17 ...... ---,,---~.... ---..--. ...-.... The Michigan Farm News (ISSN:0743-9962) is published twice per month except in the months of November, December, June and July when only one issue is printed, as a service to regular members, by Michigan Farm Bureau, 7373 West Saginaw Highway, lansing, Michigan 48917. Member subscription price of $1.S0 is Included in annual dues of Michigan Farm Bureau regular members. Additional subscription fees required for mailing Michigan Farm News to nonmembers and outside the continental U.S.A. Periodical postage paid at Lansing, Michigan, and additional mailing offices. Letters to the editor and statewide news articles should be sent to: Editor, Michigan Farm News, Post Office Box 30960, Lansing, Michigan 48909-8460. POSTMASTER - Send address changes to: Michigan Farm Bureau, Post Office Box 30960, lansing, Michigan 48909-8460. Editorial: Dennis Rudat, Editor and Business Manager; Thomas Nugent, Associate Editor. Design and Production: Dan Stiles. Contributor: Sue Stuever Battel. Advertising Sales Representative: Joshua Merchant. Offlters: President, Jack Laurie, (ass City; Vite President, Wayne Wood, Marlette; Third Member, Jan Vosburg, Climax; Administrative Director, Chuck Burkett; Treasurer and Chief Financial Officer, Tom Parker; Secretary, David VanderHaagen. MFB President jack Laurie met with U.S. Rep. Nick Smith (R-Addison) recently at Farm Directors: District 1, Jim Miller, Coloma; District 2, Blaine VanSickle, Marshall; District 3, Michael fusilier, Manchester; District 4, Tom Guthrie, Delton; District 5, Alan Gamer, Mason; District 6, Wayne Wood, Marlette; District 7, Rick Johnson, Bureau Center. Laurie thanked Smith on behalf of Michigan farmers for introducing a Leroy; District 8, Don Sutto, Saginaw; District 9, Joshua Wunsch, Traverse Oty; District 10, Margaret Kartes, West Branch; bill into the House allowing for income averaging. The income averaging legislation District 11, Robert Wahmhoff, Baraga. At-Large: Jac:k laurie, (ass City; Faye Adam, Snover; Jan Vosburg, Climax; Judy Emmons, Sheridan. Promotion and Education. Merlann Keinath, Deckerville; Young Farmers, Jeff Homing. Manchester. presented in H.R. 86 was adopted. Capitol For more information on legislative topics in the STATE Oil and gas lease post-production costs Corner NATIONAL Michigan Farm News, call 800-292-2680. B ills H.B. 5261 and H.B. 5262, sponsored by Larry DeVuyst (R-Ithaca), have both passed the House Forestry and Mineral Rights Committee. H.B. 5261 requires: A. Provide the lessor with detailed informa- tion in writing regarding all operations related to the property. B. Prior to assessing any post-production 1. A person who has entered into a gas lease as costs, provide the lessor in writing with a Fast-track legislation a lessee shall not deduct from the lessor's specific itemized accounting of all post- royalty any portion of post-production costs production costs proposed to be assessed. P resident Clinton has formally requested Con- gress to pass so-called fast-track legislation that will allow the president to negotiate trade agree- unique characteristics of perishable agriculture. • Take into account whether a nation participating in the trade negotiations has failed to adhere to the unless the lease explicitly allows for the de- duction of post-production costs. H.B. 5262 requires: A person who has entered into a gas lease ments. Previous authorization for the president to provisions of already existing trade agreements with 2. If a lease explicitly provides for the deduction as a lessee shall provide the lessor with month- negotiate new trade agreements expired in 1994. the United States or has circumvented obligations. of post-production costs, the lessee may only ly revenue statements written in plain English Without such authority, the United States will be • Ensure that countries joining the World Trade deduct post-production costs for the following that provide all of the following: left sitting on the sidelines while other nations ne- Organization have made meaningful market liber- items, unless the lease explicitly and specifically 1. The price received by the lessee and the gotiate trade agreements and capture export mar- alization commitments in agriculture. provides for the deduction of other items: name of the purchaser. kets that American farmers could otherwise supply. On Oct. 8, the House Ways and Means Com- A. The reasonable costs of carbon dioxide 2. Specific itemized list of all deductions taken Under fast-track legislation, the president has mittee approved the fast-track legislation and sent it (C02), hydrogen sulfide (H2S) and molecu- from the lessor's royalty. authority to negotiate trade agreements. During the to the floor for consideration by the full House of lar nitrogen (N2) removal. In addition, the bill requires that the lessee negotiations, Congress and interest groups are kept Representatives. The committee included the above B. Transportation costs after the point of contract with a certified public accountant for informed of progress and have the opportunity to agricultural language. Agriculture is the only seg- entry into an independent, nonaffiliated, preparation of an annual audit. The audit would make input. Following completion of the negotia- ment of the economy that received this special third party-owned pipeline system; a pipe- be required to disclose tax credits received by tions, the agreement is presented to Congress for emphasis in the fast-track legislation. line system owned by a gas distribution the lessee for operations on the leased property review, public hearings and approval or disapproval. The importance of exports to agriculture and company or any subsidiary of the gas dis- and a list of all purchases and purchase prices of Congress cannot amend the agreement. future export opportunities are very closely linked to tribution company, which is regulated by gas by the lessee or by a subsidiary or affiliate of Farm Bureau policy has supported fast-track trade agreements. In 1996, U.S.exports of agricultural the Public Service Commission (PSC); or the lessee and the name of the seller. The audit authority for many years. In the current debate by commodities set a new all-time record at 160 billion. an affiliated pipeline system, if the rates prepared would be provided to all lessors of the Congress over reauthorizing fast-track authority, The export market provided outlets for the following charged by the pipeline system have been audited property. Farm Bureau withheld its support unless specific percentages of U.S.commodities: 22 percent of the approved by the PSC or if the rates MFB Position: Farm Bureau supports language was included to address agriculture. Farm com crop, 54 percent of the wheat crop, 49 percent of charged are reasonable, as compared to both H.B. 5261 and H.B. 5262. Bureau insisted the language direct the president to the soybean crop, 7 percent of the beef production, 6 independent pipeline systems based on Action Requested: These bills may be do the following when negotiating trade agreements: percent of the pork production, 17 percent of the the location, distance, cost of service and before the House of Representatives in the near • Reduce or eliminate foreign tariffs or other pro- poultry production, 45 percent of the cherry crop, and other pertinent factors. future. Farm Bureau recommends members grams that decrease market opportunities for 23 percent of the apple crop. Agricultural exports pro- 3. If a person who has entered into a gas lease immediately contact their state representative U.S. agricultural exports. vide jobs for 1 million Americans and 23 percent of the as a lessee plans to or does charge the lessor and ask them to support both H.B. 5261 and • Reduce or eliminate subsidies that decrease mar- U.S.agricultural economy is dependent on exports. for any portion of post-production costs, the H.B. 5262 . ket opportunities or unfairly distort agriculture In 1996, Michigan ranked 18th among all 50 lessee shall do both of the following: MFB Contact: Scott Everett, ext. 2046 • markets to the detriment of the United States. states in the value of agricultural exports at 11.2 • Develop, strengthen and clarify rules and effective billion. These exports provide 19,000 jobs in farm- Study shows stronger CJD and mad cow link dispute settlement mechanisms to eliminate prac- ing, food processing / marketing / transportation A study by British scientists gives stronger found that the same infectious proteins, called prions, tices that unfairly decrease U.S. market access and 34 percent of the Michigan agricultural econo- ~backing to the once-suspected link between are to blame in both CJDand mad cow. In one study, opportunities or distort agricultural markets to the my is dependent on exports. mad cow disease and the human brain disorder researchers injected laboratory mice with ground-up detriment of the United States. Special emphasis Farm Bureau supports passage of fast-track Creutzfeld-]akob Disease. In a study performed at the brain samples of persons who died from mad cow- must be given to import-sensitive products, in- legislation and is encouraging members of the University of Reading in England, researchers said associated CJD and injected others with another CJD cluding unjustified sanitary or photosanitary re- Michigan congressional delegation to support it laboratory studies show the same strain of germs that variant. Mice with the mad cow-like injection exhibited strictions that are not based on sound science. with their votes. cause mad cow cause the similar C]D in humans. symptoms similar to cattle with the disease while the • Improve import relief mechanisms to recognize the MFB Contact: AIAlmy, ext. 2040 • The study and another corroborating study other batch did not exhibit the same symptoms .• STATE Methyl bromide bill introduced in House Electric restructuring and deregulation H R. 2609, an AFBF-supported bipartisan bill to permit continued use of methyl bromide, has The Miller/Condit billpermits the use of methyl bromide until safe and cost-effective alternatives are R ep. Tom Alley (D-West Branch) .introduced H.B. 5245 on Oct. 8, 1997, and It was referred to the Committee on Public Utilities. er generation and allow retail customers the ability to shop the market for competitive rates. MFB Position: Require that all retail custom- been introduced in the House by Reps. Dan Miller (R-Fla.) and Gary Condit (D-Calif.). found, or until all nations, induding developing na- tions, agree to ban methyl bromide on a set date .• The bill would restructure certain aspects of the ers enjoy any rate reductions. Analysis not complet- electric utility industry, specifically the generation, ed as of this writing. transmission and distribution. The purpose of the bill is to increase the competitive aspects of electric pow- STATE Passengers in the back of a pickup MFB Contact: Ron Nelson, ext. 2043 Action Needed: None at this time .• [(I MF~ RADIO NETWORK Serving Michigan farm families is our only business R ep. Deb Cherry (D-Burton) introduced H.B. 4255, which is currently in the House Trans- portation Committee. truck, with detailed specific exclusions for mili- tary, emergency, parades, agriculture and con- struction. S inc~i~ beginning in 1971, Michigan Farm Radio Network's only objective has been to serve Michigan's farm families. This The bill would prohibit anyone under the MFB Position: Neutral dedication to serve agriculture is shared by 27 local radio stations age of 16 from riding in the back of a pickup MFB Contact: Ron Nelson, ext. 2043 • in Michigan. Through these stations, Michigan Farm Radio Network provides the latest in market analysis, weather and news to Farm STATE Bureau members daily on the following stations: Meat inspection - repeal en. Philip Hoffman (R-Horton) has intro- concern that the Department of Agriculture does not Station City Frequency Morning Report Noon Report S duced S.B. 126 which passed the Senate and was considered in the House Agriculture Commit-The have the funding or staff to inspect meat at this time. USDA inspects commercial facilitiesexcept those WABJ WATZ Adrian Alpena 1490 1450 5:45 5:30 am am 11 :05-12:00 pm 11:30 am tee on Oct. 9. that slaughter and process for personal use where the WTKA Ann Arbor 1050 6:05 am 12:00-1:00 pm The bill repeals the Meat Inspection Act which meat is not inspected and cannot be sold. Discussion WLEW Bad Axe 1340 6:30 am 12:50 pm is administered by the Department of Agriculture. regarding inspection of non-traditional meats, e.g., WKJF Cadillac 1370 5:45 am 11:10am MFB Position: Neutral cervids (deer and elk), rattites (ostrich and emu), and if WKYO Caro 1360 6:15 am 12:10-1:00 pm MFB Contact: Ron Nelson, ext. 2043 there is a need to revise or repeal the meat inspection WTVB Coldwater 1590 5:45 am 12:00-1 :00 pm Special Notes: There has been discussion and law.A discussion is antidpated on the repealer bill.• WDOW Dowagiac 1440 6:05 am 12:15 pm WGHNAM Grand Haven 1370 5:45 am 12:15 pm STATE WGHN FM Grand Haven 92.1 5:45 am 12:15 pm WPLB Greenville Prescribed burning WBCH Hastings 1380 6:15 am 11:50am 1220 6:15 am 12:30 pm R ep. David Anthony (D-Escanaba) has intro- duced H.B. 4049 dealing with prescribed burn- ing. The bill has passed the House and is now in the tion over the projected bum area. • Publishes a notice in a local weekly newspaper. • Provides for at least a 100-foot buffer zone be- WCSR WHTC Hillsdale Holland 1340 1450 6:45 am 12:45 pm 12:15 pm WI ON Ionia 1430 6:45 am 12:30-1 :00 pm Senate and Natural Resources Committee. tween a proposed burn area of over 40 acres WKHM Jackson 970 5:45-6:00 am 12:30-1 :00 pm The bill requires that the Department of Natural between adjoining privately owned property WKZO Kalamazoo 590 5:00-6:00 am 12:00-1 :00 pm Resources not conduct a prescribed bum in any geo- unless the owner agrees to have all or a portion WPLB FM Lakeview 106.3 6:15 am 12:15 pm graphic area of this state unless the department: of his land included in a prescribed burn. WOAP Owosso 1080 7:15 am 12:40 pm • Conducts at least one public meeting in that year MFB Position: Farm Bureau is supporting WHAK Rogers City 960 12:15 pm in a county where the prescribed bum is to occur. H.B.4049. WMLM St. Louis 1520 6:05 am 12:20 pm • Notifies each local fire department with jurisdic- MFB Contact: Scott Everett, ext. 2046. WSGW Saginaw 790 5:55 am 11 :30-12:30 pm WMIC Sandusky 660 6:15 am 12:45 pm STATE WKJC FM Tawas City 104.7 12:40 pm Firearm deer hunting WLKM Three Rivers 1510 5:45 am 12:15 pm en. Leon Stille (R-Spring Lake) has intro- hunting with a firearm from a tree stand. WTCM Traverse City 580 5:45 am 11:10am S duced Senate Resolution 96, which utges the Natural Resources Commission to permit deer MFB Position: MFB supports Resolution 96. MFB Contact: Scott Everett, ext. 2046. Visit our web site at: www.mfrn.com 1~'jl[~~ll'l~ October 30, 1997 Fifteen growers unite to form Michigan Apple Packers Cooperative Michigan~ harvest Continued from page 1 growers through a cooperative could they afford an and pooled together to make it work," he explained. building, revolves around a large metal cube occupy- investment of this nature and still maintain an own- Currently, the cooperative's marketing efforts rolls along with record ing the center of the line - an electronic color soner. ership position in this exciting venture." are being handled through Traverse City-based yields In one pass, it measures 6,000 levels of color in an "We want this to become as efficient as possi- North Bay Produce. "We're not selling anything Continued from page 1 apple and matches these to a preset level and then ble," Steffens said. "We've got automatic baggers here, we just pack it right now," Steffens said. will average 113 bushels per acre, an increase of mechanically grades the apple as it continues down that we want to be able to get up and running so we The individual growers also provide their own 19 bushels from 1996. That compares to U.S. the line, assuring the buyer of the fruit's quality. can become efficient as possible to eliminate labor." storage space for their own apples, but Steffens indi- corn production forecast at 9.31 billion bushels, "Today's consumer demands that level of According to Steffens, the 15growers with com- cated that eventually adding space for apple storage up fractionally from 1996, the third highest corn precision when it comes to their food supply," ex- mitted apples will pack their apples at separate times, was part of the original design of the building. production on record. Based on conditions as of plained Ken Nye, director of MFB's Commodity and reducing the potential conflicts of differing fruit quality. "You're talking about a pretty huge, long-term early October, yields were expected to average Environmental Division. "These growers realized The fruit will be paid for by evening out the highs and commitment and a lot of money," Steffens conclud- 125.8 bushels per acre .• that to continue in the apple packing business they lows of the produa. "Obviously,not everyone can run ed. "We need to run good quality fruit out there, needed the very best and most expensive equip- their fruit at one time, so in order to keep it fair, the and we've got some good growers in this group to Global climate change ment. Only by combining forces with their fellow highs and lows are going to have to be averaged out do just that." • treaty Continued from page 1 The 400-foot-long production can result in very significant chang- cement building lo- es in the resulting profits." cated in Sparta pro- An analysis of six commodities illustrates the vides an affordable impact of higher energy prices: structure for the • Com: Production costs would rise 15.5 percent growers to build their under the "low" increase scenario and 31.7 per- $2. 1 million facility. It cent under the "high" scenario. Returns, or net also provides the abil- profits, to producers would be cut by 23 and 51.6 ity to expand byadd- percent, respectively. ing on to the existing • Soybeans: Production costs would rise 13.7 facility. percent under the "low" increase scenario and 27.3 percent under the "high" scenario. Returns to producers would be cut by 10.3 and 20.5 per- There's nothing high- cent, respectively. tech about how the • Wheat: Production costs would rise 13.4 per- apples are initially cent under the "low" increase scenario and sorted by size after 26.7 percent under the "high" scenario. Re- they are washed. As turns to producers would be cut by 28.6 and they head to the 57.2 percent, respectively. washer/waxer filled • Hogs: Production costs would rise 4.9 percent with 85 brushes they under the "low" increase scenario and 10.3 must pass over a siz- percent under the "high" scenario. Returns to ing sheet with 2 '/4" producers would be cut by 40 and 84.5 per- or 2 '/1" holes. If they Standing next to the state-of-the-art color cent, respectively. don't make it past sorter, Michigan Apple Packers Cooperative • Milk: Production costs would rise 3.8 percent here, they simply fall President Rob Steffens explains how the ma- under the "low" increase scenario and 7.5 per- through and make chine sorts the apples based on the color lev- cent under the "high" scenario. Returns to pro- their way to the cider el and how it automatically kicks back any ducers would be cut by 26.9 and 53.1 percent, mill. apples that don't fit the preset color levels. respectively .• et onne(te on aye 8.5( per minute for all in-state calls, 11.9( per minute for all calls anywhere else in the United States, 24 hours a day Charges are based on six-second increments; if you talk for one minute and six seconds, you pay for one minute and six seconds, not for two minutes as Cash in on long-distance savings with The you would with some other companies Farm Bureau Connection Dial-one service with easy access Free calling cards Personal 800-numbers are available Low monthly access fee of $1.50 r---------------------------, LETTER OF AGENCY I choose The Farm Bureau. ConnectionSM as my primary long-distance provider for the service(s) and telephone number(s) indicat- ed below and I authorize The Farm Bureau4ll ConneaionSM to act as my agent by notifying my local telephone company of this choice. I certify that I am legally responsible for the payment of chaIges incurred on the telephone number(s) listed below and that I have the au- thority to change the prescribed 1 + long-distance carrier currently providing service to these telephone numbers. Further, I recognize that I can have only one primary long-distance company for a given telephone number; that I will no longer be pre-subscribed to my current long-distance carrier's services and that my local telephone company may impose a charge for this and any later change. I also understand that The Farm Bureau. Connection's'i.lI name will appear on my long-distance bill as a result of this switch and that this only affects my 1 + long-distance services. I understand that my signature will result in my intraLATA (where available), interLATA long-distance telecommunications service, interstate and intrastate being provided by The Farm Bureau. ConnectionS.lI. Signature: Print Name: Date: Telephone(s): ( Street Address: ~~ '0.: ~ • Mailing Address (if different from above): , .... ,I" .' CitylState!Lip: :~-:(.#~~ County Name: Farm Bureau Membership For Office Use Only #: Signature of Authorized Rep: Print Name: ~ Allenrollees in the Farm Bureau Connection program will be charged a S1.50 monthly billing fee. Members are also responsible for any one- Where Belonging Makes a DiHerence. time switchover fee (average S5) that may be charged by their local telephone company. Michigan Farm Bureau ~_ MICHIGAN THE STATFS LARGEST Membership Services Department GENERAL FARM ORGANIZATION L PO Box 30960 • Lansing, HI 48909-9934 ~ '._ FARM BIJBEAIJ Hiring employees? Here's what you'll need to know The basic survival pack for hiring The first in a series of articles to clear of the clouds surrounding ment" M of workers on the farm the "employ- any farming operations could not some survive without hiring outside labor - be it one employee or 50, many of the .- ~ ifications provided for in the requirements many attorneys recommend you simply post them all regardless of a possible exemption because of the difficulty in maintaining the exemptions during "emergency" conditions that are likely to occur in typical farming operations. A two-panel poster pack including all 17 postings is available from the Regu- rules regarding the basic employment of individuals latory Compliance Assistance Program (RCAP). remains the same. 5. Basic recordkeeping "Twoessential premises to understand are the There are many statutory and regulatory re- concept of 'to permit or suffer to work' and how each cordkeeping requirements applicable to farm oper- law can contain a different definition of 'farming,' ations. From an employee standpoint, these are the explains Craig Anderson, Regulatory Compliance minimum records necessary regarding the person: Assistance Progr;am manager. "In the broadest sense, a. Name in full, as used for Social Security the law defines employment as 'to permit or suffer' a b. Home address and zip code person to work. In real terms, this means any person c. Date of birth, if under 19 who does any work regardless if there is any payment d. If under 16: for that work, can be considered an employee. Under 1. Name in full this structure the casual help for haying and caretak- 2. Place where minor lives and his or her ing can be considered employees. Normally this be- Finding good employees and keeping the correct information on them protects your farm- permanent address ing operation. A few basic recordkeeping requirements apply to all farm operations. comes an issue when a person is injured while not an 3. Date of birth employee but it also occurs when there was a prom- considered an employee. Do not ask to see any employment or 4. Evidence in writing of any required parental ise for future favors that do materialize. In either case What do you need when you hire an identification documentation until after the consent the prudent path to follow is every pair of hands gets employee? 1.9 process is completed! 5. Keep the minor employee's age or a paycheck." There are basic requirements covering all 2. Social Security number employment certificate on file What is farming? employees. Yes, there are certain exceptions, ex- Employers must ask to see each new employee's e. Gender and occupation. According to Anderson, "farming" can not be emptions, and qualifications relating to farm em- actual Social Security card and record the number. Managing the employment relationship is as defined with a one-size-fits-all statement with any ployment; however, if you don't fully understand Note: Though the employer must ask to see the card critical to farm operations as the proper selection of accuracy. "With that said, in relation to employ- the scope of these as they could be applied to the there are no provisions requiring the employee to any other production inputs. The value contributed ment, the factors used in determining if an employ- specifics of your operation, it is in your best interest provide the card. If the employee refuses to show you to your operation, or costs created by employment ment relationship exists include in part: the right to to assume the person is an employee and at a mini- the actual card record the number they provide you. problems, is directly attributable to sound manage- control the actions of a person, the family relation- mum have these basic items in place. 3. State and federal W-4s ment. Management begins with a firm understand. ship of the person to the owner of the operation, 1. Immigration and Naturalization The limited exemptions are difficult to defend ing of the rules. Successful management strategies the business structure of the operation, the Stan- Service Form 1.9 and if the W-4s are not taken, and proper taxes are find the opportunities within the requirements to dard Industrial Classification code of the operation, This form must be completed for all new hires not withheld, the employer may be held responsi- improve productivity and profit through the effec- whether or not there is any non-agricultural work after November of 1986.The prospective employee ble to pay for all unpaid taxes, not the employee! tive use of personnel. done, and the types of compensation used," he must provide the employer with documentation show- 4. State and federal posters Comprehensive labor management infor- added. How to understand these differences will be ing the person's eligibilityto work in the United States There are a possible 17 different posters farm mation and services are available from RCAP, a covered in future articles. For now, assume every This applies to all workers including cousins, operations may be required to post when they em- Michigan Farm Bureau-affiliated program, by person who performs any work on your farm will be neighbors, and friends. ploy people. Even though there are numerous qual- calling (800)782-6432 .• New-hire reporting forms required for all new employees hired since Oct. 1, 1997 New report intended to reduce match with unemployment compensation compensation amount," Kelly explained. incidence of unemployment that they might be receiving as well, even Employers can opt to meet the reporting Required Information for fraud and missed child support though they are now a new employee at a requirement through regular mail or electroni- New-Hire Reporting payments new occupation." cally. Kelly says state officials prefer that the Employer Employee I you've f hired any new employees since Oc tober 1 of this year, then you may be surprised to learn that you also have to fillout a new reporting Unfortunately, says Kelly, employers were not notified of the new reporting requirement until this past week by the state of Michigan's reports be completed electronically, especially in situations where employers will be hiring more than five new employees each month. Information Information form as mandated by the state of Michigan. Accord- Family Independence Agency and the Depart- "There is free help for employers to set up the Federal Employer Social Security ing to Michigan Farm Bureau Labor Specialist ment of Treasury. Irregardless, the New-Hire procedure," Kelly explained. "Those interested Identification Number Howard Kelly,the New-Hire Reporting Program is Reporting Form, officially known as the MI W-4, in the electronic reporting option are encour- Number (FEIN) intended to accomplish several things. is still required, retroactively, for all employees aged to contact the technical support staff at "The objective of the New-Hire Report- hired since Oct. 1. 800-524-9846. " Company Name Name ing Program, quite frankly, is to find people Normally, employers will have up to 20 Employers using the paper-reporting op- that may be abusing the system," Kelly said. days to report new hires. Reporting forms are tion can obtain copies of the form, which can Address Address "Some of them might owe child support, and required of all new employees, including part- then be photocopied, by calling 800-FORM2ME the state will do a match with backlogs of time and seasonal laborers. "There is no exclu- and requesting the Michigan New-Hire Report- child support payments. They will also do a sion for the number of hours worked or the ing Form, MI W-4. Michigan agricultural land values up Takeearly precautions now for protection T he value of farm real estate, including land and buildings, in Michigan averaged a new high of against harvest dust and molds Sl,600 per acre on Jan. 1, 1997.This is up Sl30 per acre or 9 percent above the value from a year ago, F all harvest always carries the potential for dust and mold-laden working conditions - some- times both - when the crop is taken out of the field room, silo or grain bin - that does not have sufficient ventilation to move dust and mold away from the worker. organic dust syndrome (TO OS) . Depending on a person's susceptibility, TODS can develop after a single exposure to dust or mold or after according to the Federa1/State MichiganAgricultural Statistics Service. The estimates for 1996and prior years were previously published by the Economic and handled into and out of storage. "Watery eyes, coughing, wheezing, and repeated exposure. Research Service of the USDA.Farmland value contino Howard Doss, Michigan State University irritation of the nose, throat or lungs are possi- TODS can start as a flu-like illness that ues to increase in Michigan, the latest number repre- Extension agricultural safety specialist, says ble signs that a person is working in conditions begins two to six hours after exposure and is sents a 59 percent increase from 1990when the aver- farmers should be prepared to provide them- that could cause a potentially serious, perhaps characterized by coughing, chills, fever, fatigue, age per-acre value of farm real estate in Michigan was selves and workers with protection from both chronic health ailment," Doss says. "People who muscle aches and, sometimes, shortness of Sl,005. The value of farmland in bordering states was conditions. experience two or more of these reactions breath. When these symptoms develop, obtain also on the rise in 1997with Ohio, leading the way,at Dusty conditions usually develop from would be wise to take steps to protect them- medical attention immediately. $2,110 per acre, Indiana at $1,970 per acre, and WIS- small particles (fines) that arise during a normal selves." Among the masks suitable for working in consin at $1,250 per acre. Allthree states' values were harvest and may intensify when immature, over- Protection includes wearing a dust mask dusty and moldy conditions are the 3-M 8710, up 6, 9, and 6 percent, respectively. Since 1990,farm- ly dried coarse grains are harvested. capable of filtering out mold and dust to 5 mi- the CoM 9920 and Moldex 2300 or equivalents, land values have increased 66 percent in Ohio, 57 per. Molds can develop when immature crops crons. Painter's masks do not provide adequate which can be ordered from Gemplers in Wis- cent in Indiana, and 56 percent in WISCOnsin.Michigan have had prolonged exposure to moisture. respiratory protection. Disposable mold- and consin by calling 800-382-8473. (Mention of also increased in the average cash rent per acre to Some molds, particularly those that can develop dust-filtering respirator masks can be bought trade names and companies is for information $57.30, up $5.10 or 10 percent above 1996.Cash rents in corn, can produce spores that are dangerous from most farm supply centers or farm supply only - it is not a product or a company en- in neighboring states range from $55.00 per acre in when inhaled, Doss relates. catalogues. Special respirators, which may offer dorsement.) Also check "safety" in the yellow WISCOnsinto $99.50 per acre in Indiana. Plant pollen, chaff, dust and other fine increased protection from molds, dusts and pages of phone books from metropolitan areas U.S. farm real estate values averaged $942 per material can also be a human hazard when pollens, are also available. for safety equipment. acre as of Jan. 1, 1997,6 percent above a year earli. dried forages and grains are put into or taken When in severe dust-laden working condi- "It is important to know under which cir- er. The largest increases occurred in the Corn Belt out of storage and when grains are ground or tions, workers should also consider wearing cumstances these filters can be safely used, so and the Lake States, up 8 and 7 percent respectively dried forages are fed to livestock, he points goggles to protect the eyes from accumulating be sure to read the instructions on the contain- from 1996. All states show increases from the previ- out. dust or pollen that could cause eye irritation or er," Doss says. "When the masks are matched to ous year except for Florida, which remained virtual- The risk of respiratory damage to any injury. the working conditions, this type of personal ly the same. Cash rents for agricultural cropland worker increases when these materials are han- Among the respiratory ailments caused by protection can significantly reduce respiratory increased for most states while a few states showed dled in an enclosed area - such as a grinding overexposure to dust, pollen and mold is toxic health risk." • small declines .• Market Corn i est peaks we may experience. The latest USDA re- port indicated that we not only have less beans than the trade thought, but we have less beans than the T HOGS he hog market continues to be a disap- OIdJ.ok H Soybeans (explosive) H J. September report showed. And, on top of that, they pointment. While we know we are in a Wheat H raised export projections. The new numbers are period of expansion that will lead us to pro- Hogs H shown in Table 3 below. duction increases of 6-8 percent next year, at Cattle H this point year-to-year expansion has been Does all of this mean we are on our way to Index: H = stable prices; f = higher prices; .I. = lower higher prices? My fundamental analysis would sug- marginal. It appears just as supply fundamen- prices; TP = topping; 8T = bottoming; 1 = unsure gest not. As shown below, ending stocks as a per- tals for this fall look positive, demand disap- cent of use is projected to be 10.3 percent. This pears. Where is the Japanese demand? Or, export sales to date. So overall, the market is giving would indicate an annual average price of around does the market feel hogs are coming soon, us pretty good prices and we need to decide how $6.55. We are delivering soybeans for higher than and just haven't gotten here yet? much risk we want to take. that at harvest. Somewhere the market disagrees Until the second week of Oct. we saw little to by Dr. Jim Hilker, The basis and spreads continue to suggest with my numbers - hard to believe. My hypothesis none of the 2-3 percent increase that the Septem- Department of they will pay for on-farm storage, but not commer- is the market feels the crush number will grow as ber Hogs and Pigs Report indicated. Then, we saw a Agricultural Econom- cial storage. Consider having 40-70 percent of your we go through the year, and so might the export 5 percent year-to-year increase in weekly numbers. ics, Michigan State corn crop sold now, depending on your ability and number if El Nino hits South America this winter. To My guess is we will see the 2-3 percent increase in University desire to handle risk. For those with on-farm stor- support that, they point to large livestock numbers numbers for the fall as a whole. Again, the question age, use it for the remaining corn production, and and huge exports sales of soy meal to date. is demand. At this point there is little to do other CORN for those who don't have on-farm storage, consider delivering all of your corn using a basis contract to So while the market may be right, I feel that than to keep current. My analysis would suggest N othing like a nice jump in prices right at har- vest time! Hopefully, folks are and have taken advantage of them. It appears use will be a little remain in the market on some portion of your pro- duction. not only are prices good now, but there is downside risk. Consider having over half of your soybeans sold outright and use a basis contract on the re- that the projected production increases are already built into the market. • WHEAT stronger than previously expected and supply a maining portion. Spreads between contract months Senators question little smaller than many had projected. This is in- sight the market gleaned from the Oct. 10 release of T here were no major changes in the bottom line for wheat. The ending stock projection have widened up a little, but not enough to pay storage. The one possible hitch here is trying to source of ESA the USDA's latest Crop Report and SupplylDemand was lowered slightly, but projected supplies relative predict the basis this spring given the Zeeland pro- incentive funding Balance Sheet Reports. While the USDA did raise the projected corn to use remain more than adequate. However, there were some significant offsetting changes within the cessing facility. CATTLE A bill approved by the Senate Environment and Public Works Committee that promotes in- centives - rather than government regulations - to yield six-tenths of a bushel, it was less than the 1997-98 projections. Projected production was protect endangered species sounds good to many trade and the markets had been expecting. And, when coupled with the lower-than-expected begin- ning stocks figure released at the end of September, raised 20 million bushels due to the Oct. survey. Projected feed use was raised 25 million bushels T he USDAOct. 1 Cattle-On-Feed Report, released Oct. 17, showed the inventory on feed at 114 percent of last year. Placed in September was lawmakers. But several senators have expressed concern over how the incentives to landowners will when the September Stocks Report indicated more the projected supply actually went down 13 million wheat was fed this summer than previously up 2 percent, compared to September 1996, and be financed. bushels. The updated supply/demand numbers can thought. The new supply/demand numbers for marketed in September was 15 percent above year Private habitat reserves and cost-sharing pro- be seen in column 3 of Table 1 below. wheat are shown in Table 2 below. ago numbers. The first and third of these numbers grams for property owners are included in the bill, However, the bullish changes in expectations Wheat futures are pretty much where supply/ were very close to trade expectations, but the place- introduced by Sens. Dirk Kempthome (R-Idaho), John were not left only to the supply side. The USDA demand fundamentals would suggest. There is not a ment number was on the higher side of expectations. Chafee (R-R.I.)and Max Baucus (D-Mont.). Backers of raised their feed use number 75 million bushels to whole lot of reason to hold onto any remaining 1997 These numbers indicate that we will have the bill say the incentives would be more effective in account for the high feeding rates seen last year. wheat. Ifyou have some remaining on-farm, and plenty of cattle through the rest of 1997. It now protecting species than government regulations that The bottom line showed a tight projected ending don't need the storage space, the market indicates it appears the long-awaited turnaround in prices prohibit private landowners from utilizing land where stocks figure of 781 million bushels, only 8.3 per- will pay for on-farm storage into the new year. How- may not arrive until February. The more cattle on threatened or endangered species live. But, they real- cent of use. Fundamentally, this would suggest an ever, predicting the direction of the wheat basis is feed now, the less left for later. Eventually, the 1 ize the money has to come from somewhere. average annual price of around $2.85. much less reliable than for the corn or soybeans. percent decrease in the 1996 calf crop and the 2 "There is widespread support for these new These numbers would suggest December percent decrease in the 1997 calf crop will have to incentive programs in both the environmental and SOYBEANS landowner communities," a group of senators said futures at around $2.95 after adjusting for the basis show up in placement numbers. Continuing to and seasonality. Possible explanations for the mar- 'A fhat a ride! While the roller coaster may still look down the road, cow slaughter remains rela- in a letter to Franklin Raines, director of the White ket balking at going quite that high include some V. go over a higher peak, there is reason to tively high and heifers on-feed continue to run House Office of Management and Budget. "There is doubts about feeding rates and the slow rate of believe we may be at, or just over, one of the high- above year ago numbers. also legitimate concern that the bill provides no assured funding mechanism." The senators asked COMMODITY PRICE TRENDS Raines to help them find the money before the bill reaches the Senate floor for a vote .• .:.::.,: .. 7'fJ1O Afarketbasketprices ~O climb 28 cents j/ ..... ~e American Farm Bureau Federation's Market- ........ . .. . • basket Survey reveals an overall 28-cent increase ...... on food items since last quarter. The third-quarter 2&10 . . . . . . . . average is the highest since the survey began in 1989. ZSliO Americans paid $32.92 for the 16 select items Com. Dec. '97 Wheat • Dec. '97 during the period. It marks the third straight quar- 34£10 ter the average price increased. IW ftpr n.v Jan .I Iv I'tIg Sq Oct "Many of the increases (this quarter) could ..... reflect Labor Day demand," said David Miller, policy 73.00 ZJ5.oo 7\1.00 specialist with the American Farm Bureau Federa- ..... n.oo ZJl.oo n.oo tion. "Labor Day marks a transition. It affects the .\ : AI · .\~ .... : 71.00 10.00 r".oo 10.00 ~ dairy market. It can also affect the beef market. 68.00 & Also, because of the end of the garden season, :g~ more consumer demand is returned to the stores." 66.00 611.00 ~ Prices tend to increase during the year's third &7.00 ~ quarter. Since 1989, prices during that period have 66.00 ......... ~ jumped an average 15 cents. Live Cattle • Dee.. '97 : . Lea,:,.Hog~ ~.~-.'~~: ~ Potatoes contributed the most to the 28-cent .~ - 16.00 r~ IIau ~ increase in the overall average. A five-pound bag .I.. IW Apr IIq .Il11l .II, ~ Sq lkt liar flpr .In .1111 ~ ~, lkt J... rl!. n.r Altr ~ .Ilia Jill ltill Sell ~ increased 31 cents to $1.77. Miller said the sharp ~ increase could represent an adjustment from last year's dismal potato market. Bacon and ground Table 1 - Corn Table 2 - Wheat Table 3 - Soybeans beef also saw increases. A pound of bacon jumped Estimated Projected Estimated Projected Estimated Projected (Million acres) 1995-1996 1996-1997 1997-1998 (Million acres) 1995-1996 1996-1997 1997-1998 (Million acres) 1995-1996 1996-1997 1997-1998 12 cents to S2.48. Ground beef, at $1.75 a pound, Acres set-aside/diverted 6.2 0.0 0.0 Acres set-aside & diverted 5.2 0.0 0.0 Acres planted 62.6 64.2 70.9 climbed 10 cents. Of the 16 items on the survey, 10 Acres planted 71.2 79.5 80.0 Acres planted 69.1 75.6 70.8 Acres harvested 61.6 63.4 69.8 increased in price. A pound of sirloin fell 13 cents, Acres harvested 65.0 73.1 74.0 Acres harvested 60.9 62.9 63.5 BuJharvested acre 35.3 37.6 39.0 the sharpest decline on the survey .• BuJharvested acre 113.5 127.1 125.8 BuJharvested acre 35.8 36.3 39.7 Stocks (million bushels) Stocks (million bushels) Stocks (million bushels) Beginning stocks Production 335 2,177 183 2,383 132 2,722 New tax checkoff Beginning stocks 1,558 426 884 Beginning stocks 507 376 443 Production Imports 7,374 16 9,293 13 9,312 10 Production Imports 2,182 68 2,285 92 2,527 95 Imports Total supply 2,516 4 2,576 10 2,859 5 A House Resources subcommittee on national parks has approved a bill that would allow federal taxpayers to set aside some of their overpay- Total supply 8,948 9,732 10,206 Total supply 2,757 2,753 3,065 Use: Use: Use: Crushings 1,370 1,436 1,495 ment for operation and maintenance of national Feed and residual 4,696 5,368 5,625 Food 883 892 900 Exports 851 882 960 parks. Food/seed & Ind. uses 1,598 1,690 1,775 Seed 104 103 100 Seed, feed & residuals 112 126 134 Taxpayers would be able to direct a portion of Total domestic 6,294 7058 7400 Feed 153 314 325 Total use 2,333 2,444 2,589 their refund toward all national parks or any specific Exports 2,228 1,790 2,025 Total domestic 1,140 1,309 1,325 Ending stocks 183 132 270 GI park. The money would only be used for operations 8,848 9,425 Exports 1,241 1,001 1,100 Ending stocks, % of use 7.8 5.4 10.4 ~ and improvements at existing parks, and would not Total use 8,522 781 Regular loan rate $4.92 $4.97 $5.26 Ending stocks 426 884 Total use 2,381 2,310 2,400 ~ be used to acquire new park land. Ending stocks, % of use 5.0 10.0 8.3 Ending stocks 376 443 665 u.s. season average ] Currently, taxpayers only have one checkoff Regular loan rate $1.89 $1.89 $1.89 Ending stocks, % of use 15.8 19.2 27.7 Farm price, $lbu. $6.72 $7.38 $6.55 ~ option on federal tax returns, which directs federal U.S. season average Regular loan rate $2.58 $2.58 $2.58 ~ funds to presidential campaigns. The bill also must Farm price, $lbu. $3.24 $2.70 $2.85 u.s. season average ~ be approved by the House Ways and Means Commit- Farm price, $lbu. $4.55 $4.30 $3.45 ~ tee, which has jurisdiction over income tax issues .• Duyck named 1997 Conservationist of the Year Bay County farmer receives second strate Integrated Pest Management, soil resi- annual award due trials and best management practices for A t an Oct. 22 ceremony, Bay County MSU Extension," Duyck explained. "Our coun- Farm Bureau President David Duyck ty Extension Agent Mike Staton received a received the 1997 Conservationist of the grant to test a vacuum device for pest removal Yearaward from Michigan's Senate Republicans for on our potatoes as an alternative to chemical his work conserving the natural resources on his usage. Although it didn't work as expected, it diversified farming operation located in the Saginaw was worth trying." Baywatershed. He also was a driving force behind receiv- In the second year of the award, Duyck ing a groundwater protection grant for Bay was cited by Sen. Joel Gougeon (R-Bay City) as County, which initiated a study to expand an example for others to follow when practic- farmers' management practices to protect ing proper stewardship of the land. He cited both soil and water. examples of Duyck's leadership within differ- "Through the Michigan Groundwater ent environmental groups and practices he Stewardship Program, Bay County Farm Bu- used on his farm that promoted superior envi- reau sent a questionnaire out to our farmer ronmental stewardship. members asking them what cost-share pro- "Honoring a farmer not only recognizes grams they would be interested in," he ex- the importance of the relationship between plained. "For one, we learned of their interest agriculture and the environment," explained in nitrate testing from that survey, which is MFB President Jack Laurie, "it demonstrates crucial to Bay County since we are at the cen- the respect farmers like Dave have for the land ter of the Saginaw Bay." on which they make their living and raise their "If it wasn't for the other environmental families." groups I worked with I never would have been Duyck worked with the Saginaw Bay Wa- able to do the things that the award was for," ter Quality Initiative and volunteered his time Duyck concluded. "The thanks should really for the water quality demonstration program go to them." building a model chemical storage facility as Duyck and his wife, Barb, and their two an example for other farmers. children live in Essexville on their 555-acre "Through the Water Quality Initiative we farm raising sugar beets, corn, soybeans and were able to build a chemical storage facility alfalfa. that cost over $8,000," he said. "Without the Last year's Conservationist of the Year As part of the ceremony during Michigan's second annual Conservation Day, Bay County 75 percent cost-share incentive we would not award went to the late Michigan United Con- Farm Bureau member David Duyck received a proclamation from the Michigan Senate from have been able to do that. servation Club Executive Director Tom Wash- Sen. Joel Gougeon (R-Bay City) (left) and had a chance to speak on the floor to explain how "I was asked to use my farm to demon- ington .• he worked to correct erosion and sedimentary problems on his farm. MDA awards $3 million in groundwater protection grants Michigan Farm Bureau to receive Program, are designed to help farmers evalu- registration fees on household and agricul- Program is a cooperative effort between the over $41,000 ate their farming practices and provide tech- tural products. Registration fees are paid by Michigan Department of Agriculture, Michi- M ichigan Farm Bureau (MFB)has been awarded nearly $42,000 in a grant from the Michigan Department of Agriculture (MDA)to help nical assistance for individuals dealing with pesticide or fertilizer spills. In addition, grants will provide groundwater monitoring companies that register their products for use in Michigan. A tonnage fee on bulk fer- gan State University Extension and the Natu- ral Resources Conservation Service. Close tilizers is also a source of funding. Nitrogen coordination is also maintained with Michi- prevent the contamination of groundwater through- for private well owners who are interested in tonnage fees are paid directly by bulk fertil- gan Farm Bureau, Michigan Agri-Business out Michigan. The grant was one of over $3 million their drinking water quality, a pesticide dis- izer users. Association, and the Michigan Association of in grants to 55 programs in 78 Michigan counties, posal program and recycling of plastic pesti- The Michigan Groundwater Stewardship Conservation Districts .• announced by MDAthis past week. cide containers. According to MFB Environmental De- "While the focus of the program is on partment Manager Jeff Edgens, the grant will groundwater resources alone, it has a wide be used in a collaborative statewide outreach effort with MDA, MSU Extension, Natural Re- sources Conservation Service and the Michi- scope and addresses the many uses of these materials, including agricultural, turfgrass and household applications," said MDA Direc- r---------------------------~ Proven performance I I gan Agri-Business Association. The primary tor Dan Wyant. "Since it began in 1995, the I focus, he says, will be on groundwater educa- Groundwater Stewardship Program has is- in the field I tional supplements, which will be delivered sued $6,594,626 in grants. This program is a to over 46,000 farmers via the Michigan wonderful example of public and private I Since 1990 DSR soybeans have generated over 600 top ten I Farm News on a monthly basis over the next agencies working in a cooperative spirit to- 12 months. ward a common goal." finishes in University trials. In 1996, Dairyland's DSR/STS I "Solutions to groundwater issues, such Local Groundwater Stewardship Teams herbicide tolerant varieties had 21 top ten finishes alone. I Whether you're looking for STS tolerance, Roundup Ready I as well-head closings and buffer strips, will determine local needs, apply for project be compiled to help farmers practice good funding and ensure the coordination of lo- soybeans, or just plain old fashioned high yielding genetics, stewardship," Edgens said. "We also are going cal resources to achieve the community's the DSR lineup delivers. to focus on the development of locally based groundwater stewardship goals. The teams groundwater stewardship teams that will are made up of pesticide and nitrogen fertil- Contact your local Dairyland representative to learn how identify local grounQwater priorities and then izer users, representatives from commodity you can obtain top yields with Dairyland soybeans. implement volunteer programs to meet those organizations and government agencies, needs, whether it's well-head closings or pes- agribusiness owners, as well as interested ticide storage facilities." citizens. Adrian, MI Ft. Wayne, IN Mason, MI The competitive grants, awarded Funds for the program come from in- Dave Dickerson, D.S.M. Gary Freiburger, R.S.M. Hoskins Farms through MDA's Groundwater Stewardship dustry-supported pesticide and fertilizer 517/265-2255 219/639-6927 517/589-8822 Applegate, MI Grandville, MI Mt. Pleasant, MI Soybean Association seeks nominees Dan Babcock, D.S.M. John Pater Randall Recker for DuPont Young Leader Program 810/648-3612 616/896-9387 517/773-5488 N omination forms are available for the Michi- gan Soybean Association's DuPont Young Leader Program. Sponsored by the Soybean Associ- Leader Program has identified new farmer-lead- ers," Herb Smith, president of the Michigan Soybean Association, says. "I would encourage Byron, MI Garry Adams Hudsonville, MI Jerry Poortenga Perry, MI Claude Benjamin ation and DuPont Agricultural Products, the Young anyone with an interest in working with the 810/266-4170 616/896-9119 517/625-7542 Leader Program is designed to help identify soy- soybean association to apply. The term Young bean farmers with innovative and assertive leader- Leader only refers to experience with the soy- Carson City, MI Lachine, MI St. Johns, MI ship qualities who are not currently involved in bean association. Actual age doesn't matter." Lowell Litwiller Larry Sumerix, D.S.M. Paul Buehler, D.S.M. soybean association leadership roles. Applicants for the DuPont Young Leader 517/584-3675 517/379-4073 800/232-2424 Young Leaders will be selected from Michi- Program need not be Michigan Soybean Associ- gan and 25 other soybean producing states. The ation members, but must be involved in soy- Erie, MI Mason, MI Webberville, MI group will receive in-depth education on soy- bean production and interested in providing Ralph Nartker Wayne Every Robert Benjamin bean issues, have the opportunity to meet state solid leadership to guide the soybean associa- 313/856-4985 517/676-2162 517/521-3183 and national soybean association farmer-lead- tion into the future. ers, and have an increased opportunity to pro- Young Leader applicants will be critiqued vide future soybean association leadership. by an in-state panel of farmer-leaders based on Dairyland Seed -- A Growing Force The Michigan DuPont Young Leader willbe participation in community affairs, innovation recognized at the Commodity Classic in Long in farming methods and leadership ability. Beach, Calif.,Feb. 19-25, 1998.They will also partici- To receive a nomination form, contact the 1-800-236-0163 pate in a farm technology and marketing seminar in Chicago, Ill. in the summer of 1998. "This marks 15 years the DuPont Young Michigan Soybean Association office, P.O. Box 287, 140 W. Thscola, Frankenmuth, MI 48734. Phone: (517)652-3294 .• ._--------------------------~ ~~ll'I:\"'J:1 October 30, 1997 Tax management tips for farmers Conferees approve $40 million Plant Genome M.P. Kelsey, Michigan State University is a 10-year straight line on machinery; and 150 Simplified Employee Plan (SEP) require that cer- 1997 end-of-year tax planning percent declining balance using the ADS guide- tain employees also be covered. Tax-deferred con- Initiative line. For the first year, the mid-year convention is Com growers thank Senator Bond for he basic management guideline is to tribution limits "to a profit-sharing plan" are an T avoid wide fluctuations in taxable income because a relatively uniform income from year to year results in the lowest income tax and used (half-year's depreciation) unless 40 percent or more of your capital purchases are made during the last three months of the year. In that case, the effective 13.0435 percent (15 percent of net in- come less the contribution). A new, simple plan replaces SEPs for 1997. The fourth alternative is an his leadership T o date, most of the federal investment in bio- technology has been in the medical field. But Congress took a major step toward bringing the largest homestead and farmland preservation mid-quarter convention is used (87.5 percent of a Individual Retirement Account (IRA). Employees credits over time. However, even in a low-income year's depreciation for purchases made during the do not have to be covered if a self-employed per- power of biotechnology to bear in the agricultural year, plan to utilize personal exemptions and the first three months, 62.5 percent for purchases in son utilizes an IRA;however, the maximum contri- sector when a conference committee voted recently standard deduction. the second quarter, 37.5 percent for the third bution is $2,000 per year, with an additional $2,000 to provide $40 million for a national Plant Genome Significant tax changes from both 1996 and quarter, and 12.5 percent in the final quarter). in an unemployed spousal IRA.An IRAdeduction Initiative during the 1998 fiscal year. 1997 tax legislation that are applicable starting with • Pay your children wages for work actually per- cannot be utilized if either spouse is eligible to The initiative, funded through the National formed for the farm. If the child is under 19 or participate in another retirement plan where the Science Foundation, will focus on deciphering the the 1997 tax year include: • New capital gains rates for sale of capital assets regularly enrolled in school, they can earn any AGI exceeds $50,000 for a married taxpayer, or genetics of corn and other economically significant sold after May 6, 1997, and held for 18 months or amount and the parent can still claim an exemp- $35,000 for a single taxpayer with reduced contri- crops. Such research will eventually enable scien- longer (24 months for breeding cattle and horses). tion for them if the parents pay over half the bution limits for AGI down to $40,000 and tists to locate individual genes that control impor- child's support. The parents must use the depen- $25,000, respectively. These phase-out levels in- tant traits such as stress tolerance, pest and disease (A 12-month holding period is applicable until July dent exemption. The child must file a tax return crease after 1997 and additional retirement pro- resistance, yield, and nutritional value. These genes 28.) Tax rate is 20 percent if taxable income is in the 28 percent bracket or higher and 10 percent only if they earn over the standard deduction grams will be available. can then be incorporated into improved crop variet- ($4,150). A return, usually a 1040A, must be filed • Your farm business is a built-in deferred-compensa- ies that address a diverse range of producer and for that portion of capital gain between taxable by a child under 14 if investment income is great- tion and tax-loss program. Investments and current consumer needs. income and the top of the 15 percent bracket er than $500. Children under 14 will have un- expenses are made that substantially improve the Genetic research is critical to farmers' future ($24,650 single and $41,200 married). Items held 12 to 18 months will receive the same treatment as earned income (over $1,000) taxed at the par- value of the business property, which can be sold at success in the world marketplace, according to ents' rate. Form 8615 is used [Q calculate the tax. a later date, frequently at capital gains rates. Estab- National Corn Growers Association (NCGA) Presi- assets sold prior to May 6, 1997, a maximum rate • For Michigan income tax, an individual who is lishing a fruit orchard and increasing the size of a dent Byland Utlaut, who grows 3,500 acres of corn, of 28 percent. To the extent of depreciation on eligible [Q be claimed as a dependent on some- breeding livestock herd, for example, fit this situa- soybeans and wheat in Grand Pass, Mo. depreciable real estate, it will be recaptured like one else's return and has an adjusted gross in- tion. "Crops" that fit this category are timber, fruit "To continue to compete globally, we must 1245 property (Le., farm personal property such as come of $1,500 or less is entitled to a refund of trees and Christmas trees, as well as the build-up in improve our production capabilities here at machinery), but at a maximum rate of25 percent. all Michigan tax withheld. If they have an adjust- year-end inventories. home. We have to be able to farm in an efficient • The self-employed health insurance deduction is ed gross income of more than $1,500, they are • Use installment sales of capital items to spread and economical manner. We have to maximize 40 percent in 1997 and increases to 100 percent entitled to only a $1,000 exemption allowance. income over a number of years. However, with yields while minimizing the environmental im- over a 10-year period. • The sale of principal residence after May 6, 1997, • Frequently unrecorded and forgotten expenses fewer and wider tax brackets and depreciation pacts of our farming practices. And we have to include: recapture considerations, an installment sale may combat serious threats from disease, pests and is tax-free up to $500,000 of gain for joint return • Educational expenses that maintain or improve not be advantageous. weather," Utlaut said. files ($250,000 single) . your skills, such as magazine subscriptions, • Ifapproaching retirement, keep in mind the new "But by mapping the genomes of major • The alternative minimum tax inclusion of farm property in installment sales in AMT reporting books, fees at Extension or other agricultural $5OO,(XX).per-couple($250,000 each) exdusion of crops and allowing biotechnology to work, we for tax years after Dec. 31, 1987, was repealed. organization meetings gain from tax for that portion of a farm sale attribut- believe that we can address the majority of eco- • Travel expenses connected with your business, ed to your residence. Also, plan for more of your nomic and environmental concerns that farmers • An increase from $250 to $2,000 for the annual particularly if it includes meals and lodging income from rent, dividends, interest and pensions face," Utlaut noted. "And the same research can unemployed spousal IRAcontribution. • Entertainment expenses when hosting others rather than ordinary income so that income will not ultimately lead to the development of a host of • Penalty-free IRAdistributions may be taken to where the "predominant purpose" is the fur- be taxed as self-employment income for Social Secu- new uses for corn and other crops in the food, pay for medical expenses and/or health insur- thering of your farm business operation. rity or reduce Social Security benefits. Earned-in- feed and industrial sectors." ance premiums to the degree expenses exceed Social Security and hospital insurance rates for come levels that will decrease Social Security bene- The Plant Genome Initiative, which is support- 17.5 percent of adjusted gross income. • The section 179 (direct expense) deduction for the self-employed are 12.4 percent and 2.9 percent fits for 1997 are $8,640 per year for those under age ed by a broad coalition of farm groups, agribusinesses capital purchases increases from $17,500 in 1996 for a total of 15.3 percent on 0.9235 of net farm 65 and $13,500 for persons age 65 to 69. The de- and research ipstitutions, has been shepherded [Q $18,000 in 1997, with a gradual annual phase- profit up [Q $65,400 for 1997. One-half of the Social creases are $1 for every 12 of excess earnings for through Congress by Senator Kit Bond (R-Mo.). in [Q $25,000 in 2003. Security tax will be deducted as an adjustment to those under 65 and $I for every 13 excess earnings "Senator Bond has worked closely with NCGA • Several special items, such as a new work opportu- income. In addition, the 2.9 percent hospital insur- age 65 through 69. For age 70 and over; there is no and the Missouri Com Growers Association to build nity credit; a deduction for long-term health care, ance tax continues on income over $65,400. reduction, but Social Security taxes are still paid on congressional support for plant genome research including insurance, but only to the degree medical Long-range tax planning earned income. and we are grateful to him for sharing our vision," • Maintain a good set of records to ensure that all • Be sure to deduct as large a portion of business- Utlaut said. "We are pleased to see this vision come expenses exceed 7.5 percent of adjusted gross in- come (AGl); and an adoption credit and exclusion. expenses are taken. Small cash purchases are personal expenses as is justified in your situation. to fruition through the Plant Genome Initiative and Depending on your tax situation, you may easily forgotten. A good recordkeeping system is Frequently, considerably more than 50 percent of we look forward to the many rewards and advances wish to reduce or increase net income for 1997. essential for end-of-year tax planning, as well as the electridty and phone costs can be considered that this initiative will yield.". Following are some of the best income eveners: working with credit agendes. business. Also, choose the method for auto deduc- • Buy or delay purchase of supplies such as fertilizer, • Where income is high enough, plan the purchas- tions that is best for you. The standard mileage AgriLand Exchange seed, farm supplies, small tools and repairs (tax es of machinery to fully utilize the direct expense rate for 1997 is 31.5 cents per mile for all business opens real estate shelters can only deduct items when used). These deduction. mileage. Mileage for charitable purposes can be expenses cannot exceed 50 percent of your total • Plan your personal deductions. Many medical ex- itemized at 12 cents per mile; for medical purpos- office in Indiana Schedule F expenses for the year for which eco- nomic performance has occurred. In most cases, it penses and contributions formerly spread over two years can be paid in one year and itemized as de- es, 10 cents per mile (after 1997,14 cents per mile). A griLand Exchange, a division of Michigan livestock Exchange (MLE) and Indiana live- stock Exchange (ILE) is pleased to announce the will be hard to reach that level of expenditure. ductions. In the next year, the standard deduction • Be aware of the Alternative Minimum Tax in tax may be taken. Changes in itemized deductions planning. Alternative Minimum Taxable Income opening of a location in Tipton, Indiana, in an effort • Pay in 1997 or delay payment to 1998 on real include medical expenses in excess of7.5 percent of (AMTI) includes tax preference items such as the to better serve the agricultural community. Agri- estate taxes and other annual bills. (Insurance AGI, no personal interest is deductible, moving difference between MACRSand ADS depreciation, Land Exchange, a full service agricultural real estate premiums, real estate rental for 1998 and interest expenses are now an itemized deduction, and most and tax-free interest, as well as regular income. and auction company, currently has locations in cannot be paid in advance [Q obtain an earlier tax miscellaneous deductions are deductible only to the There is a single $45,000 exemption for those East Lansing, Michigan and Archbold, Ohio. Agri- deduction, but 1997 expenses of insurance, rent- degree they exceed 2 percent of AGI. Land Exchange has focused its attention toward the als and interest can be deferred [Q 1998 if income filing joint returns ($33,750 single) and a tax rate • Ifyour medical insurance and medical expenses of 26 percent on the first $175,000 of AMTI and 28 agricultural real estate industry and offers a wide is low this year.) are not currently deductible, explore the medical percent on AMTI in excess of $175,000. It is paid spectrum of services including, Conventional Agri- • Watch the timing of sales of livestock and crops benefit alternatives for the self-employed and to the degree the tax exceeds your regular tax, cultural Real Estate Sales, Real Estate Auctions, Per- ready for market near year-end. Possibly they can choose an alternative that best fits your situation. which for farmers is likely to occur when invest- sonal Property Auctions, a Buyer Brokerage Service, be held for sale next year at little cost or sold • Investigate a Self-employed Retirement Plan. ment tax credit carryover reduces the regular tax, and Real Estate Appraisals. earlier [Q even out raxable income . There are four potential tax-deferred retirement or when MACRSdepreciation deductions are very Stan Williams, Broker, Brings a vast knowledge • Some expenses are deductible as current -year plans available. A defined contribution Keogh and large and taxable income is low.• of the Agricultural Real Estate industry to AgriLand business expenses even though not made every Exchange. After having grown up on a dairy farm in year. These include minor repairs on improve- Indiana, Williams graduated from Principa College ments and machinery, painting of buildings, pur- in Elsah, Illinois. Williams and his wife Joan, current- chase of small tools and supplies, and, within limi- ly operate a crop;1ivestock operation in Tipton tations, cost of approved soil and water conserva- County, Indiana and also instructs real estate classes tion expenses. Get these jobs done and paid for at RE.C.P. of Bloomington, Indiana and Ball State before year end if you wish to reduce net income. University . • Where capital purchases have been made, or can Jill Cameron, Associate Broker, has been be made, study the depreciation alternatives care- active in the Agricultural Real Estate Industry fully. The direct expense deduction of up to for 21 years. Cameron has been involved in the $18,000 on personal property can be taken on farm equipment business and operated a crop/ current year capital purchases. Its use, however, livestock operation until 1996. Cameron re- cannot reduce your taxable income from farming mains active as a member of the American Le- (plus other earned income) below zero. Taxable gion, Lions Club, Indiana Beef Association and income includes net farm profit plus gains on the the National Cattleman's Association. sale of business assets such as breeding livestock. AgriLand Exchange provides you with a team Where pre-productive expenses are not a consid- of experienced and knowledgeable professionals, eration, there are four choices for depreciation: capable of assisting you in realizing your agricul- Modified Accelerated Cost Recovery System tural real estate goals. You may contact Stan Will- (MACRS),which is a seven-year, 150 percent de- Managing your input costs such as fertilizer, feed and seed can be an important tax iams or Jim Cameron at (765) 947-5010 or on the clining balance on machinery; MACRSstraight line; management strategy. world wide web at www.agrilandexchange.com .• the Alternative Depreciation System (ADS), which Goodnews potato consumption is up No surprise ... it's the fries entire campaign around the concept that dinners W hat did you have for dinner last night? The night before? How would you like to record what you and your family ate for dinner every night? That's how Na- f STARTWIlli POTATOES. This campaign positions potatoes as meal builders, and shows consumers the versatility of potatoes. A new recipe brochure shows consumers how tional Eating Trends (NET) gathers data on what to prepare quick, nutritious meals starting with families are eating. For a two week period families potatoes. This brochure teaches the microwave/ record every meal eaten, what they ate and how it saute, microwavelbake and microwave/mash tech- was prepared. niques to consumers and provides them with quick, NET presented a report on in-home and easy recipes. The idea is that once consumers learn restaurant potato consumption trends for the these techniques, they can create their own recipes year ending November 1996 to The National Po- with common household ingredients. tato Promotion Board at its summer administra- Our new television commercial builds on the tive committee meeting. microwave/saute method used in 30 minute, one-pan Research shows that potato consumption recipes. It features a trendy, young couple driving increased after three years of stability. Restaurant house to house for dinner. The catch is they're cook- consumption is driving the growth specifically with ing and they've got POTATOES!They slice, microwave, fries. Quick-serve restaurants like McDonald's and and then saute the spuds, adding common household Arby's, dominate restaurant potato consumption. ingredients to make a tasty meal for their hostess and Midscale restaurants are 19.2 percent of potato her family. Then they drive off in search of their next eatings, and upscale restaurants are 8.5 percent. dinner engagement, but not before saying, "... the Mashed, baked and specialty potatoes con- way we see it, it all starts with potatoes." tinue to lead at home potato consumption. How- The commercial reinforces the message that ever, baked potatoes are at an all time low. NET potatoes are meal builders. Once consumers know attributes the baked potato's at home decline to this method, they can prepare their own recipes decreased use of the microwave. Mashed pota- starting with potatoes and what is available in the toes hold steady, and specialty spuds continue to cupboard or refrigerator. Look for the commercial grow. Boiled and steamed potatoes are declining, to air Nov. 3. while fries gradually inch up. At a media event for New York based publica- Traditionally the potato is thought of as a side tions, food editors will hear NET statistics about eating dish to accompany a protein and a vegetable. The trends and research about the consumers' desire for traditional three-part meal is declining; giving way quick, casual meals. Also, over a lunch that starts with to quick, one-dish meals. Protein-based dinners potatoes, they will hear suggestions about how pota- have been gradually declining since 1991. toes can fit in the "too busy too cook" dinner routine. Research shows that today's consumers want Thanks to research and NET data, The Board National Eating Trends (NET) rep.orts that potato consumption has surged thanks in no small quick, easy, casual meals, like soups, sandwiches knows the answer to the age-old question, "What's part to rising french fry sales. and macaroni and cheese. The board developed an for dinner?" POTATOES!. Improving milking parlor performance by Roger Mellenberger per hour. Cows enter parlors much quicker when no Sorting cows by milking speed dipped. Predipping reduces the number of cows Department of Animal Science walls or doors separate the holding area from the par- Parlor efficiency in larzer herds can be improved milked per hour. E xp~ding he~dsl. increasing labor efficiency, milking parlor changes, an~ implementing three times per day milking are preludes to improv- lor. In addition, a comfortable parlor entrance should have no more than one step (6 inches maximum) and no turns, no step potential (voltage), and no surprises. dramatically, if slower milking cows are grouped. A recent time study done in a Michigan parlor showed that 100 of 410 cows milked three times per day in a • Promptly dismiss people who are abusive to cows. Sunvnary Consider these points when trying to maximize ing income and milk harvested per person at milk- Mechanization double-B herringbone parlor had machine-on times of cows milked per hour or milk harvested per hour per ing time. Trying to move more cows through a par- A heavy crowd gate that can be raised and re- 7 minutes or more, with 57 of the 100 cows taking person. lor per unit time can sometimes become a frustrat- turned over the cows so two groups of cows can be in more than 8 minutes to milk out. Sorting the 57 slow- • Keep cows clean. ing effort. Adding more automation and (or) stalls the holding area at the same time.is also advantageous . est milkers into a separate group would have saved this • Design the holding area and parlor to maximize to improve flow of cows through the parlor meets An electric crowd gate will move cows, but many ~ dairy producer approximately 80 minutes per milking. cow movement. with varying results. pIe consider shocking cows an unacceptable practice . Cow deanliness • Maximize milking units per person depending on Many measurements are available to define par- Rapid exit parlors work well, but initial costs are higher Clean cows are easily prepped for milking be- production per cow and ability of persons milking. lor or labor efficiency: cows milked per hour; cows to fit increased alley width and double return lanes. cause time is not wasted trying to dean teats and ud- • Utilize proper milking procedures. milked per person per hour, total milking time, milk The ability to shorten the stalls (mdexing) by several ders. General milking procedure recommendations for • Position the milking units correctly on each cow harvested per hour, milk harvested per person per inches keeps udders within reach of the milkers. parlors are outlined below. to promote maximum milk flow. hour, and annual cost of milking per cow. The cows Group or gang indexing is extremely helpful when first • Total prep time consisting of washing or predip- • Adjust automatic detachers to detach as soon as milked per person per hour and milk produced per lactation cows are managed as a separate group. ping teats, stripping milk frqm each quarter, and possible after milk flow has ceased. hour per person are good measures of the total parlor Automation drying teats should equal 10 to 15 seconds for • Sell or son slow milking and problem cows and routine. Annual cost of milking per cow per year In my opinion, the addition of automatic detach- early lactation cows and should take 20 to 25 milk them as a separate group. should include cost of the parlor plus labor, mainte- ers increases machine-on time per cow. However, a seconds for mid-ta-Iate lactation cows, and for • Train milkers correct cow handling techniques nance of equipment, operating expenses, and cows milker person can operate more units and, therefore, cows milked three times daily. and milking procedures. milked per hour. A dairy producer that builds a larze the added time per cow becomes less important Most • Machines should be attached immediately after • Maintain milking equipment. parlor just to keep milking time to fewer than four detachers have adjustable flow rates and detach delay teats have been dried. Individual cloth towels are • Use the parlor more than four hours per day. hours will have a high annual cost per cow. A dairy times. Dairy producers should set the flow rate at the superior to paper towels in removing predip, Milking parlors have become a major cost of a producer that maximizes pounds of milk harvested per highest level and delay time to detach at the lowest dirt, and (or) water. new dairy facility. Paying back the cost of a parlor and person per hour should show a good efficiency rating level to decrease machine-on time. • Teat ends should be clean. equipment becomes a focal point of efficiency. Annu- at a reasonable cost. Expecting one person to harvest Milking frequency • Most of a teat's surface should be covered with al cost of milking is decreased as milk per person per 2,500 to 3,500 lb. of milk per hour is realistic. Milking three times per day should increase cows pre- and post -dips. It is of no or little value to dip hour is increased and parlors are used for more Most, but not all factors that could affect the rate milked per hour but milk output per hour may go one side of a teat only. Dipping teats after milk- hours. Hired laborers must be comfortable when or harvesting milk are discussed below. down. Cows milked three times per day will have lower ing with an approved sanitizer will prevent 50 to working in a parlor to make their job easier and en- Parlor size peak milk flows and lower yields per milking. 70 percent of new infections caused by conta- joyable. The milking parlor should be a pleasurable As a first estimate, you should expect to milk one Cow behavior gious mastitis pathogens if the whole teat is work site and cows must consider it comfortable .• shift of cows per 15 minutes (range 12 to 20 minutes). Most cows should enter a parlor voluntarily if Therefore, multiply any parlor size (number of stalls) trained correctly. A milker should not load an entire by the number of shifts per hour to get cows milked parlor side before starting to prep and attach ma- per hour. For example, a double-6 parlor with 12 units chines. Ideally, all stalls will be full by the time three or should have an expected cow throughput of approxi- four units are attached. Cows will wait to be chased in if mately 48 cows per hour. A double-20 parlor with 40 that is the milker's normal routine. Cows also will enter units should have a throughput of approximately 160 parlors very freely when milkers are quiet and nonabu- cows per hour. sive. Cows enjoy consistent routines. Milk production Milking procedures Higher production will decrease cow throughput Dairy producers are driven by a desire to milk per hour. However, pounds of milk harvested per hour more cows per hour by building bigger parlors and should increase. adding more units per person. A more desirable goal at Number of people milking milking is to reduce the time a milking machine is Two people milking in a parlor designed for one attached to an individual cow. A managed milking milker may increase cow throughput by only 10 to 15 routine should be geared to milking each cow as fast as percent. In most situations, one person can operate a possible. Improper milking procedures such as inade- double4 to double-6 parlor without automation and a quate prepping time or attaching the machine too double-lO to double-12 parlor or larger with automa- early or too late will negatively affect the actual ma- tion. A parlor should be designed to reduce the idle chine-on time per cow. Improving prepping time and time for the number of people milking. techniques will significantly decrease machine-on time Parlor design for mid-to-late lactation cows, slow milking cows, for Proper training of new milking parlor employees of the correct milking techniques results in The time it takes cows to enter and exit a parlor cows milked three times per day, and for cows milked higher quality. has a significant impact on the number of cows milked with automatic detachers. AS FARMERS MONITOR THEIR SUCCESS IN CORN, ONE NUMBER KEEPS COMING UP. RX601 beat the best from DeKalb, N.ovartis and. Pioneer - for three years straight.* It does it with strong emergence and early vigor, good leaf disease and stress tolerance, and good stalks a'nd roots to support its top yield. On top of all that, RX601 is a unique, great-looking plant that turns heads all season long. All of which is why it's become a very important hybrid for a whole lot of growers. Fifteen years ago, Asgrow made a commitment to build a corn line on par with anyone's. Today, proprietary hybrids like RX601 .are the result. So put Asgrow corn in your lineup. Then watch your yield numbers start going up. * For proof of Asgrow corn success, call 1.800.815.4545. Asgrow Seed Company, Des Moines, Iowa. www.asgrow.com , III m MICHIGAN F A R M N October 30, 1997 Legislation expected to address post-production cost controversy L andowners who receive royalty checks on a gas or oil deposit have become very familiar with the term "post-production costs" in recent years. Unfortunately, many of those landowners were not informed or even given the '90s when gas and oil companies and the Michi- gan Department of Natural Resources renegotiat- ed the gas and oil lease for state-owned property to allow the deduction of post-production costs. Unfortunately, for private landowners, oil and gas post-production costs when the lease doesn't clearly say they can, and secondly, if it is, then doesn't the oil and gas industry have an obliga- tion to tell landowners in writing the who, what, where, when and why about these costs also require the oil and gas industry to contract with private auditors to conduct annual audits of post- production costs paid by private landowners. Everett says Farm Bureau policy on the issue of post-production costs is very clear. "Unless post- details of just what post-production costs are. companies, in turn, applied that agreement to that are being deducted?" Everett asked. production costs are specifically provided for within Post-production costs, according to gas privately-held leases, without renegotiating those Michigan Farm Bureau is analyzing legisla- the lease, they should not be allowed," Everett said. and oil companies, are a portion of the costs leases with private landowners. tion, sponsored by Rep. Larry DeVuyst (R-Ith- "Secondly, Farm Bureau policy states that the defini- associated with gas and oil production that the- "We really don't think that was the right thing aca) which will start discussions on how to reg- tion of wellhead should be at the point of sever- oretically belong to the landowner. Those items to do," Everett said. "There is no specific language ulate the oil and gas industry, specifically on ance. That's a very important point, because one of often include snow removal; gas-gathering within these leases that that we've seen in Michigan the issue of post-production costs and proce- the arguments from the oil and gas companies is lines, pumping costs for the removal of water requiring landowners to pay additional costs associat- dures for notifying landowners. that the wellhead has moved from the point of associated with gas, carbon dioxide removal, ed with extracting minerals from their land." Based on preliminary analysis, House Bills 5261 severance, which would be in the farmer's field, to a and/or transportation costs. More importantly, says Everett is the tactics and 5262 would require oil and gas companies to central gathering facility somewhere. Typically, private landowners in Michigan used by gas and oil companies. He claims that provide royalty owners a thorough accounting of "Hopefully this legislation can define, for ev- receive one-eighth of the value of the oil or gas; many landowners were not informed of the deci- what post-production costs are being taken out and eryone involved, where gas or oil, will be measured while the company keeps seven-eighths of the sion to deduct post production costs and that why, and require that those deductions be spelled — at the point of severance, a central gathering production. "For years in Michigan, that's the there was no accounting or itemization of how out within the lease language. The legislation would facility, or somewhere in between," Everett said. * way it's always been," explained Scott Everett, those deductions were being spent. legislative counsel for the Michigan Farm Bureau. "We're trying to determine two things Draft Horse Show and Pull invades the MSU Pavilion Everett says that all changed in the early here. Number one, is it appropriate to charge Fruit chemical use survey to begin T he Federal/State Michigan Agricultural Statistics Service (MASS) is gearing up for it's fourth survey of pesticide usage on fruit. week of December. A typical interview takes about an hour. Producers are encouraged to have records documenting their fruit chemical The survey will cover chemical use on apples, use on hand to help the interview go quickly blueberries, grapes, peaches, sweet cherries and smoothly. All information on individual and tart cherries in Michigan. Nationally, the operations will be treated with absolute confi- survey will cover 25 fruit crops in 11 major dentiality and used only in summaries of state fruit-producing states. and national totals. The report is scheduled to Farmers have a direct stake in responding be released in July 1998. to the survey. Within the fruit industry, some Important benefits farmers gain from re- growers rely on numerous minor-use pesti- sponding to the survey are as follows: cides because they have no alternative. Accu- • Growers have a chance to tell how they use agri- rate pesticide usage information is needed for cultural chemicals responsibly to produce a safe the registration process of minor-use chemi- and abundant food supply for America and die The 21st Michigan Great Lakes International Draft Horse Show and Pull enjoyed the cals. This information also affects manufactur- world. new confines of the MSU Pavilion for Agriculture and Livestock Education for its annual ers' decisions on whether or not to submit a • The survey results are official USDA estimates event which drew more than 700 horses from 23 states and Canada. product for re-registration. Pesticide data is and help to clarify the facts about chemical use in Held on Oct. 16-19, it took three additional tents to house the over 250 exhibitors always an important factor in the approval agriculture. and their tack, filling the parking lots to capacity. Belgians, Clydesdales, Percherons and process. • Accurate and timely information on actual usage mules had the opportunity to win top honors in individual, hitch and pulling classes. Interviewers will visit growers in person to can be used in die decision-making process for Pictured are the lead horses of the Percheron six-horse hitch belonging to Gladwin conduct the survey beginning in mid-October. product registration, re-registration, and product County's Cedarfarm Percherons. Data collection will continue through the first alternatives. 9 I HO d Member Health Insurance from Michigan Farm Bureau For over 40 years, Farm Bureau and Blue Cross Blue Shield have teamed up to provide quality health care at competitive group rates with the personalized service you would expect from a Farm Bureau membership. No matter what your needs.. .small business, sole proprietor, Medicare supplemental or individual coverage for you or your family - we have the right plan at the right price. TO RECEIVE ADDITIONAL INFORMATION, PLEASE CALL 800-292-2680, EXT. 3239 & 3240, OR MAIL THIS COUPON TO: MFB HEALTH SERVICES, P.O. BOX 30960, LANSING, Ml 48909 Individual/family coverage — for people w h o don't have employment-based coverage. Small group coverage — for farm and small business owners. Medicare supplemental coverage — f o r seniors over 65. NAME ADDRESS CITY STATE ZIP MICHIGAN • TELEPHONE il Where Belonging Mahes a Difference, r sFARM BUREAU I COUNTY 11 Agricultural public policy tour conducted F armers and representatives from environ- mental groups and government agencies gathered Sept. 8 for an Agricultural Public PolicyTour in Thscola and Huron counties. The tour vation Service in Huron County, met the group and talked about windbreaks and filter strips. He said farmers are interested in mter strips but are con- cerned about the amount of land taken out of pro- "were impressed with the importance placed on performing research (at the Innovative Farm- was sponsored by the Innovative Farmers and coordi- duction and taXes on that land. er site) exactly as prac- nated by the Michigan State University Extension The purpose of the tour was to help establish ticed by farmers" and project office with financial support from the Michi- a dialogue between farmers and others in the envi- "talking to the farmers gan Integrated Food and Farming Systems project. ronmental community to see where there might be themselves; I think the The tour provided an opportunity for farmers some common ground. The filter strip discussion way the IF is structured and representatives from environmental groups and provided that opportunity. The environmental com- - farmers make the governmental agencies to discuss mutual concerns munity expressed interest in getting more filter decisions (not Exten- about rural environmental issues. strips established. They understood the tax issues sion or others) clearly The group visited the Mike Findlay farm to see and it seemed like an area that the two groups shows." The tour partic- and learn about on-farm fertilizer containment. could possibly work together to create a situation ipants were also pleased Findlay was concerned about the possibility of sur- where there would be water quality benefits for the to learn "that there face water contamination if the storage tanks start- community, while helping the farmer reduce the really are farmers who ed to leak, so he invested in the containment facili- taXes on land that would not be in production. are concerned about ties. Some cost sharing was provided by a grant During the afternoon, the group visited the water quality, wildlife, through the Innovative Farmers and the Saginaw Innovative Farmers (IF) site southwest of Bad Axe. and other environmen- Bay Water Quality Demonstration Project to offset Several IF members talked to the group about alter- tal issues." construction costs. native crops, changes occurring in the soils as a result Improving com- Manure management was the next topic ex- of reduced tillage, and changes they are making on munications, learning plored. Rod Porth and Les Schaper showed the their farms to reduce erosion and costs. about other points of group their 6,000-gallon applicator designed to Gene Vogel, Minden City, explained how he is view and sharing ideas apply liquid manure between rows during the grow- moving towards organic farming, the concerns he were all parts of the ing season. They reviewed some of the concerns has, the barriers he needs to overcome, and the MIFFS, MSU Extension that farmers have about applying manure such as reason for the change on his farm. Ross Voelker, IF and Innovative Farmers compaction and costs of application. However, they president, reviewed the purposes and accomplish- Public Policy Tour. As a also informed the group of the savings in fertilizer ments of the IF. Harold Dropeski, Ruth, informed result of the tour, there costs as a result of the manure applications. Many the group of his tillage system and how soil tilth is were a couple of key good questions were asked by the tour participants improving. Carrie Andrich, Extension agricultural issues identified that all and a discussion of opportunities followed. Partici- agent, and Dick Roth discussed site-specific farming the participants can pants wanted to know if cost sharing was helpful in and its role in the future. work together on and Minden City farmer Gene Vogel explains how different tillage prac- getting non-livestock farmers to take manure and Overall, the results of the tour were positive. there were opportuni- tices affect the soil. Vogel is a member of the Innovative Farmers they asked about the cost of the equipment. When the participants were asked what the most ties explored to contin- organization in Huron County. Jerry Fischer, of the Natural Resources Conser- important aspects were, they stated that they, ue open discussions .• Cattle prices predicted to Senate ag committee turns away USDA meat proposal struggle through fall A griculture Secretary Dan Glickman was seek- Members of the committee accused Glickman I H igher-than-normal beef production will keep livestock prices under pressure this fall. While that's potentially good news for con- ever," warns Kirk. "The Asian markets are the largest importers of U.S. beef. A major concern in those countries has been food safety, and with the recent ~g the power to recall meat and poultry prod- ucts, and to impose fines of up to $100,000 a day, for processors who violate meat safety standards. The of a bureaucratic power grab. Sens. Bob Kerrey (0- Neb.) and Pat Roberts (R-Kan.) said the Agriculture Department in the past failed to take fundamental sumers, producers can expect lower prices for a E. coli incidents, recent beef export gains could Senate Agriculture Committee recendy said such a steps to improve mear safety. while. According to Michigan Farm Bureau live- vanish quickly." measure would do nothing to promote food safety. Many senators are urging the Food and Drug stock Specialist Kevin Kirk, working through the Large hog numbers could impact beef Committee Chairman Richard Lugar (R-Ind.) Administration to approve irradiation as a patho- inventory will take several months. in '98 said his panel would not broaden Glickman's powers gen-killing treatment for red meat The FDAhas "Large on-feed numbers from the United A growing hog inventory could also put a this year. He said the committee would study various been studying the issue for three years. States Department of Agriculture (USDA) translate damper on cattle prices into 1998, says Kirk. USDA viewpoints on meat safety, and review techniques - The meat industry stressed to the Agriculture into large fed cattle marketings this fall and into estimates put the total U.S. hog inventory at 60.3 such as irradiation - as possible alternatives to en- Committee that the USDAshould concentrate on early 1998," Kirk projected. "The number of cattle million head as of Sept. 1, 1997, up 4 percent from sure the American public on meat safety. prevention, rather than punishment .• on feed is 16 percent above a year ago." year-ago levels. Compounding the problem, says Kirk, are heavi- "Based on USDA's numbers, year-to-year Countrymark CO-Opcontinues working to settle er-than-normalfed cattle weights, which will boost beef increases in hog slaughter should pick up this hedge-to-arrive disputes with producers supplies. October through December average cattle fall and post even larger gains in 1998," Kirk dressed weights could easily match 1994's record high, for the quarter. ''Year-over-yearincreases in slaughter said. "Slaughter hog prices in 1998 are forecast to be down 10-15 percent, which will translate C ountrymark Co-op representatives are pleased with the progress made in settling hedge-to-arrive disputes with producers. Accord- sions in federal courts from Missouri and Minne- sota have sustained their legal position that these contracts are legal cash forward contracts. weights this fall could push beef production up an into lower wholesale and retail prices, too. So, ing to Ken Parrent, corporate price risk manager "In light of these decisions and the decision in additional 4 percent from 1996,"he said. pork will be priced very attractively compared of the grain division, Countrymark Co-op will our court case, we feel more strongly than ever On a more positive note, U.S. beef ex- to beef in 1998, dampening wholesale beef fed continue working to resolve the balance of these that our contracts will be upheld in the face of ports surged during July helping to support cattle price increases." contract issues. any legal challenge," stated Parrent. fed cattle prices in recent months and to move Fed cattle prices are projected to average in the "We are willing to work with producers In the last 30 days, the company has med surplus supplies. For the first time in 1997, mid to upper $605 this fall, down about $2 per cwt., toward agreements, but we stand by the integrity additional lawsuits in instances where the contract U.S. beef exports in July were higher to all compared to a year earlier. As 1998 progresses, fed of our contracts," said Parrent. ''A court of law issues were unable to be resolved. Countrymark Co- major foreign markets, compared to a month cattle prices are forecast to post year-over-year in- has confirmed our position, and other cases have op intends to enforce the terms of their contracts, earlier and a year ago. creases after early 1998 of 5 to 8 percent (about $3 to come out similarly." and will file additional lawsuits when necessary, in I "Sustaining beef exports is not assured, how- $5 per cwt.), on a quarterly average basis .• Countrymark Co-op notes that recent deci- order to resolve the matters .• Welcome to the Weldy family of and mud - all the things that Billed as "The Original Energy Free products. Find out what we challenge farmers and equip- Waterer," MlrafounP Is Justthat. Over stand for: sturdy, well-built ment alike. Our product lines are 180,000 are In use ... from the two comfort hutches are an excellent equipment that lasts. 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They Weldy products 'are available through your local dealer (dealer inquiries also welcome) Mira are lightweight, so they can easily be movecl for cleaning and they do not freeze to the ground like wooden or ftberglass hutches. MICHIGAN F A R M NEWS October 30, 1997 Anniversary of Clean Water Act spurs EPA to Perennial crops sales closing date near for push for tougher regulations crop insurance A T lmost 25 years to the day after President looking at a permit system." effluent limitations. he USDA announced recently the sales closing Nixon signed the Clean Water Act, the Industrial storm water regulations Total maximum daily loads, or TMDLs, date for 1998 crop insurance is Nov. 20,1997, Environmental Protection Agency is affect water discharges associated with industri- are limits on how much pollutant an operation for apples, blueberries, grapes and peaches. Last pushing for strengthened measures to improve al activity and construction sites. Edgens says can discharge into water-quality impaired wa- year in Michigan, $22.6 million in protection (liabili- water quality. What's more, EPA's National Water EPA is negotiating two changes that could ters in a given day. Currently, TMDLs only affect ty) was provided to producers through more than Quality Inventory points the finger at agriculture as hinder agriculture. The most significant is that point sources of pollution, but EPA is pursuing 1,000 policies. the leading cause of water quality impairment. in the future, construction sites of one or more policy that would extend the limitations to non- "Weather extremes and fluctuating prices We've all heard a great deal of talk about acres will require a special permit, down from point sources. are a vivid reminder that eventually everybody "point" and "non-point" sources of water pollu- the previous regulation which called for per- Hypoxia is another water-quality concern that will have to cope with crop losses or low pric- tion. "EPA has addressed point sources for the mits for five or more acres. could affect farming. Hypoxia is defined as an area es," said Catherine Malayer, director of USDA's last 25 years," said Jeff Edgens, manager of Michi- The storm water regulations may also af- of low dissolved oxygen in the water. An area in the Risk Management Agency. "Appropriate crop or gan Farm Bureau's Environmental Department. fect agriculture in another way. EPA is reported- Gulf of Mexico is suffering from hypoxia, which is revenue insurance protection will help you sur- "Now they're looking more toward addressing ly contemplating a new policy that would elimi- believed to be linked to nutrients carried into it vive these hardships." non-point sources." nate agriculture's historic exemption from the from the Mississippi River. There are 31 states that Sales closing dates are significant because According to Edgens, EPA intends to single permit process and put farms into Standard drain into theriver,so farmers in those states will signing up for insurance, changing the crop insured out problem areas and fix each one on a water- Industrial Classifications. That would mean ani- be required to reduce nutrient loadings into it. or level of protection, and changing insurance pro- shed-by-watershed or case-by-case basis. They'll mal agriculture would be put under storm water Michigan is not one of those states, m viders must be done prior to the announced date. also pull together other water-quality initiatives to Sales closing dates vary by crop and location. strengthen the efforts. At issue for agriculture, he Beginning with the 1998 crop year, crop says, are regulations for point and non-point insurance is available exclusively through crop sources of water pollution, total maximum daily insurance agents. USDA will continue to subsi- loads, hypoxia, storm water and concentrated dize all policies, establish policy terms and con- animal feeding operations. ditions, set rates, and guarantee funds for the Concentrated animal feeding opera- payment of approved claims. Although policies tions could come under some tough new regu- previously serviced by USDA in 1997 will be lations since EPA's authority over them was re- randomly transferred from USDA to an insur- cently expanded by the federal courts. Because ance company, producers have the right to of a recent court case, EPA can now regulate the choose their own agent prior to the sales clos- land application of manure as a point source of ing date for the insured crop. pollution. To ensure that all producers are served, insur- EPA can require a permit for any size opera- ance companies are required to insure all eligible tion if it is located near impaired water or any other crops, and provide all levels of coverage in the environmentally sensitive area. It can also require a states in which they operate. Producers are encour- permit if the cumulative wastes from several small aged to contact their agent for assistance during operations equal that of one large farm. The thresh- this period of transition. old for deciding who needs a permit is simply the Waivers of administrative fees for producers "potential to pollute." who qualify as limited resource farmers are available "There is speculation all over the board as to from all crop insurance companies. Private agents what EPA will do with regulations for concentrated are willing and prepared to assist those qualifying animal feeding operations — from ratcheting down producers with determining eligibility for waivers. A from 1,000-animal units to just a handful, to keeping The Clean Water Act was signed into law in 1972. Now, 25 years later, the EPA wants to listing of crop insurance agents may be found in all the rules as is," Edgens said. "At any rate, they're toughen laws to improve water quality. local Farm Service Agency offices.^ Focus on savings with NuVision Member Vision Care Plan from Michigan Farm Bureau The Importance of Eyecare j uVision was founded on the principle that great eyewear starts with professional •VI eyecare.That's why you'll find an independent licensed Doctor of Optometry in every \, NuVision office. Comprehensive eye examinations and contact lens fittings are easily arranged. Simply call ahead for an appointment. Once your eyes have been examined by a Doctor of Optometry at NuVision, your vision records will be maintained on file for your convenience. We invite you to compare our service.You'll find that what others call special care, NuVision provides as standard procedure. Family Plan Benefits: • 20% to 50% off frames 20% off lenses and lens treatments 10% off contact lenses 15% off non-prescription items • FREE U V protection on plastic lenses Don't forget to use •Sgr"^ Don't forget Member your Farm Bureau \ Dental or Blue Cross VISA at NuVision Blue Shield for more Optical centers health care savings. nationwide. MICHIGAN Where Belonging Mahes a Difference. FARM BUREAU F A R M IUE - E High-residue farming starts at harvest October 30, 1997 U.S. opens trade cases IB Here's how t o get a good start with small grains, such as wheat, but the effects Residue decomposition against Canada, EU A rguing that the European Union and Canada I deally, crop residue management begins at harvest with proper distribution of residue behind the combine. Combine adjustments and accessories of residue concentration by a combine can be a problem with almost any crop. If properly ad- justed, the type of combine used (rotary or cylinder) has little influence on residue cover. Rainfall, higher temperatures, fall tillage or knifed-in fertilizer applications can all speed the decomposition of crop residues between har- vest and planting. employ dairy export subsidies that break global trading rules, U.S. officials said recently they have launched a formal complaint before the World Trade Organization (WTO). Wider combine headers (greater than 15 Spreading attachments Breakdown rate also depends on the type feet) and higher residue production with new To avoid these problems, make sure you: Both complaints werefiledin the form of a of crop. Non-fragile crops like corn leave resi- crop varieties are two reasons a well adjusted request for consultations with the other two • Always check residue distribution patterns of dues that are tougher to break down than soy- combine is critical to high-residue farming. powers — the first step in the WTO's dispute newly purchased combines (whether new or bean residues. Without special attachments or modifications, settlement procedure. The case against the EU used) Time is also a factor in the decomposi- combine headers of 20 to 30 feet or more are focuses on export subsidies for processed • Consider residue spreading attachments. tion of residue. A summer-harvested crop may not adequately equipped to spread today's larg- cheese, which U.S. trade officials argue distort Straw and chaff spreaders have more time to decompose than a fall-har- er volumes of residues uniformly. markets and limit sales of U.S. dairy products in A straw spreader uses rotating blades or vested crop. Common problems the EU's 15 member countries. The Canadian rubber batts to throw or deflect whole pieces of As long as adequate moisture is available, The most common mistake made in the case also questions subsidies that the United crop residue. While the spreader typically dis- decomposition can occur when temperatures harvesting operation is to allow crop residue to States says are provided through Ottawa's na- tributes the residue more uniformly, the straw are above 50 °F (10 °C). Even when air temper- accumulate in windrows behind the combine. tional and provincial pricing arrangements for chopper can provide more residue cover, since atures drop below freezing, snow can actually This accumulation causes the soil under the milk and other dairy products. it chops the residue into small pieces before act as an insulation and allow decomposition to windrows to stay wetter and cooler longer into spreading. continue. The United States contends that both ar- the spring. Planting into windrows can result in rangements violate the agriculture agreement as A chaff spreader is effective in handling Here are crop residue types by their rela- uneven stands because the seeds take longer to well as other accords reached during the Uruguay fine materials — primarily from harvest of small tive decomposition rate: germinate and grow, resulting in significant Round of global trade negotiations. If solutions are grains or soybeans. Chaff makes up nearly half yield reductions. Crop Residue Decomposition Categories not found for the two issues within 60 days in of the harvested materials of some crops. It Other problems associated with improper bilateral negotiations, the United States can ask for does not usually reach the straw spreader or Non-Fragile Fragile combine residue distribution include: creation of three-member neutral WTO panels — straw chopper because it drops to the ground Alfalfa or legume hay Canola/rapeseed which would have six months to rule whether the • Unsatisfactory weed control from herbicide from the combine sieves. With high-yielding Corn Dry beans complaints were founded. 9 interception crops, the potential for creating heavy wind- Forage seed Dry peas • Poor performance of planters and tillage im- rows is great. Chaff is easily distributed but plements because it's lightweight, it's hard to spread be- Forage silage Fall-seeded cover crops Glickman: Ag outlook • Increased demands on planter equipment yond 20 to 25 feet. Grass hay Millet Mint Potatoes looks positive • Poor seed-too-soil contact (usually from "hair The most commonly used chaff-spreading ^ \ griculture Secretary Dan Glickman says that Oats* Soybeans pinning" of residue into the seed row) attachments are hydraulically driven single or Pasture Sugar beets • ^American agriculture appears in solid shape • Excessive residue lying directly over the seed dual spinning disks that have rubber batts at- Popcorn Sunflowers and that the Freedom to Farm Act has been a furrow resulting in an allelopatnic effect (nat- tached. Generally, single-disk spreaders are Rye* Most vegetables boon for farmers. ural chemical or toxins from related plant most effective for headers under 20 feet, while Sorghum "On the whole, I think it remains pretty types that could inhibit germination or dual spreaders are more effective for wider Tobacco positive," Glickman said. "For row-crop produc- growth) headers. Triticale* ! ers, I think prices, plus (Freedom to Farm) pay- Wheat* ments have been a real positive. I think that farm • Increased pest infestation (from insects and Spreader caution rodents) Be careful not to overcorrect for wind- *Residue from this crop should be considered fragile income levels are at a high level." • Increased weed seed concentration rowing problems. For example, spreaders may if a combine is used with a straw chopper or other- The Agriculture Department has predicted • Poor plant nutrient uptake (from fertilizer be set to spread the crop material too far, wise cuts straw into small pieces. If your crop is not that ag exports will reach $58.5 million in fiscal tie-up or interception). which simply creates windrows outside the listed, contact your USDA Natural Resources Conser- 1998, compared to $56.5 million infiscal1997. vation Service office for more information. 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Box 209, Wiersdale, FL 32195 1500 CHICKEN CAGES for sale. One Moline bucks on the alfalfa seed TOLL FREE: 1-800-248-2575 FAX: 1-352-821-4919 Choose our FLORIDA CITRUS and ship these special gifts to your friends and SAVE! tractor. Various oth- er farm equipment. Contact Jack at 517-845-3292 or you need next spring Navel Oranges and Indian River Red Grapefruit Gift Fruit Boxes leave message. Call today to get your price list and variety description from 1980 FORD 9000: Geerston Seed Farms. We have high yielding University Prices Include Tandem axle, tested varieties and top quality seed. We can sell alfalfa Packing & Shipping 350hp. 13-speed Fuller transmission. seed for less because it comes from our farm to yours. Member of Florida Farm Bureau $8500. RAVEN 330 spray monitor. One year old. $800. GEERSTON 4 U > TO SAVE 1995 Great Plains SEED FARMS ^f BIG BUCKS all seeds no till planter and drill, $38,000. 1-517-723-6679. 8200 DETASSLER 800-843-0390 We also have other forage crop seed and hybrid corn rt"—i Livestock Agricultural Services HERITAGE 6-row unit. 1 9 8 1 , SAVE MONEY. Re- BUILDING S Y S T E M S bolt on, fits Hogie. TOP QUALITY H0L- cycle your diesel 8 0 0 - 6 4 3 - 5 5 5 5 For sale or salvage. STEIN breeding age and industrial air in- 3 0 X 5 0 X IO SS.2SO Complete, all hard- ware, pump hoses, i-ESB 1 rEEi 1 pOI 1 bulls, from high pro- ducing cow family. take filters using the Sonic Dry Clean 3 0 X Q O X IO 4-0 X 6 0 X 12 $8,386 $8,322 etc. Llve8t0Ck Top Al sires, $800- System. 5 0 X S O X IO $13,023 1-616-873-3129. |F,m,Mach.n«y| | comStles | I I $900. No liquids or deter- 6 0 X 7 5 X IO lOO X 2 0 0 X I 4 M I $13,040 $50,082 BRUSH HOGS, pull Pasch Farms gents used. 50% Commercial steel buildings featuring easy bolt-up assembly from America's largest distributor. We have over lo.ooo and 3-point, 2-row 1-517-644-3519 savings over new standard sizes of shop. farm, industrial, commercial and pickers, gravity LLAMAS: North filters. mini-warehouse buildings. All are complete with engineer USED BADGER American blood stamped permit drawings. 2 0 year roof and wall rust war- wagons, dump wag- 24' Super Trail La- CLEAN WHEAT Recycle Now. Inc. ranty. Call us today for a free information package and a ons, elevators, stalk STRAW: Round lines. Show, breed- Holland, Ml quote on our top quality buildings or building component .Mini w H r c h o t i N C ;-i;ii«- goon Manure Pump ing and pet quality I Dogs & Puppies I parrs. • <». 1 -»n shredders, soil sav- for sale. Completely bales and square. 1-616-396-7724 ers, chisel plows. Hay also. weanlings available. rebuilt. Very good Some are 4-H 616-396-8102, Fax Call Dan Reld, 1- condition. $3500. Ferguson Farms BASSET PUPPIES: 517-773-5374 after Almont trained. Check with AKC, tri-color, red. NEW HOLLAND us for your next 1-810-395-7512 $275-$300. Also, 1pm. FARMERS: CASH Model 38 Crop Chopper. Very good sheep guard! For information or a vis- Bloodhound female, Business / w-BM 1 rIB— AKC, black/tan. NOW! Enrolled in condition. $4000. it, call 1-517-645- $600. Call 1-517- I Legal Services Real Estate Real Estate 1996 FAIR Act? Call 1-616-832- 2719. I I Wanted 3529 WRAPPED ALFALFA 846-4862. Why wait? Sell fu- ture Production high moisture bales. Miller's Uamaland PUREBRED LEOP- EXPERIENCED Flexibility Contract payments, all/part. i-rai—i Timothy and clover bales. All round bales. Need to Potterville. Ml REGISTERED TEXAS ARD CATAHOULA PUPPIES: 10 Michigan agribusi- ness attorneys with Lake Weir's Big Lake Village FARMS AND LAND Cash for any pur- Livestock males, 1 female, farm backgrounds. throughout Michi- pose. No fees! place your order LONG HORNS, blue eyes. Wide Knowledge and ex- Equipment now and call after Retirees make gan, agricultural Tom, 1-fl0M42.2274 weanlings, heifers, range of colors. We perience in all farm and recreational. FOR SALE: JD 730 8pm. yearling heifers and own both parents. areas; restructure, our private mobile 1250 GALLON 1-906-478-4010. Large parcels pre- diesel tractor, wide surge bulk tank with bred cows. $100 each. Call 1- stray voltage, bank- ferred. We have front, electric start, 1-616-676-1462. 313-587-3026. ruptcy, estate plan- home park your two 5hp compres- buyers! duals, 3-point. Over sors. Includes free ning. EAST SIDE: winter home. Call Dan VanVal- hauled JO A. heater. rCT Thomas J. Budzyn- 3 resales & 10 kenburg, Rural 1-517-642-5694. Asking $1900. FORD, NEW HOLLAND 1-616-897-8986. tractors and equip- CALUMET Model r™—i MINIATURE DONKEY 11 Months old. Lov- ing, intelligent, great Ponies & Horses ski, 43777 Grose- beck Highway, Mt. Clemens, Michigan. 48036. lots available. Very reasonable, Property Specialist. Faust Real Estate Adrian ment from Symon's 3250 liquid manure Livestock companion. Loves 1-517-263-8666 in Gaines. For 45 spreader-tank, two ANGUS &GELBVIEH: to go for hikes. Ex- CLYDESDALES for 1-810-463-5253. call owner: Christmas. Reason- WEST SIDE: years your best years old. Asking Breeding stock. ceptionally gentle. able, all ages, peo- 800-248-2575. deal for the long $4900. Also, N- Robert A. Stariha, Free delivery! Very small in size. ple friendly. Call 1- 40 West Sheridan, run! iJftKt 1-517-271-8445, Gaines Teck 3-point pump, 10', rebuilt gearbox. Asking $1000. 1-616-897-8986. Border Collie Stock Dogs. Call today. Bordner Farms Ready for Christ- mas. 1-616-271-3177 MINIATURE DON- 810-784-5221. FREE HOME DELIV- ERYISimply the best! Complete Fremont, Michigan, 49412. 1-616-924-3760. METAL ROOF COAT- rfS r™—i Auctions JD 4440, $22,000. Sturgis. Ml KEYS: Yearlings INGS: Heavy fibered Real Estate JD 336 baler, Horse Feed. ELITE BUFFALO 1-616-651-8353 and sucklings now + , 10% or 12%. or white roof coat- Wanted AUCTION $3500. NH 488 hay- bine, $3000. JD rake, $900. Steel I"™ 1 ANGUS BEEF: Bulls, heifers and cows with calves . available. They're versatile, long lived, intelligent, guard Dealer inquiries welcome! For infor- mation or delivery, ings. H.J. Butzin. Call anytime, early or late. BUYING FARM LAND and recreational Saturday, Novem- ber 1 , 1:00 p.m. Feeders and breed- rack wagons, $1650 Farm Performance test- animals and com- property throughout each. Two-way ra- I Commodities I Mathie Energy Supply 1-517-777-9815 northwest Michigan. ing stock. Lake ed, semen tested. panions for hiking, Co.Jnc Odessa Livestock dios, 400 gallon packing, driving and Call Ron McGregor sprayer and tools. Free delivery! Call 1-800-467-7340 Auction. Call Jim HAY AND STRAW: anytime. enjoying. at 1-616-943-7709 1-810-735-9054. 4X4 round bales, all for details. Anderson at 616- SHAGBARK Young miniature Real Estate 891-1187. LIQUID MANURE under cover. Third horses also availa- SPREADERS: cut alfalfa or mixed, Alto, Michigan ble. Will hold for $40. Oat straw, Christmas delivery! 264 ACRE FARM New and used. 1-616-868-6040 near I-94, St Clair Balzer, Better-Bilt $20. Purchase 10 M&MS Farms or more bales in Williamston, Ml County. Good build- parts. UPS daily. ings, nice woods, Also, grain dryers any combination FOR SALE: Regis- 1-517-655-4267 DRIVER NEEDED and pickup before excellent soil. and handling equip- tered Simmental for hauling livestock $1,320,000.00 Thanksgiving, re- bull, 4 1/2 years old. with semi. Class A ment. ceive 25% discount PUREBRED BOER Call Fran Plagens, Hamilton Distributing Also a Simmental GOATS. MichFlock. CDL needed. Good Cold Well Broker off listed price. bull calf, 6 months wages, good bene- 1-517-834-2576. Stud Service availa- Walters Real Estate 1-6&m>70 old. Not registered. ble. fits, home week- 1-810-727-2741 Call 1-517-386- 612 North Madison, ends. Contact Rob 1-810-727-7775 2405 after 6pm. Lapeer, Ml 48446. Kamp, 1-800-750- HORTON BAY LLA- 1-810-667-0169 4754, 1-616-875- MAS has weanling anytime. 8489. FOR SALE: 80 and yearling halter acres by owner on All steel building with a 20 year warranty trained females and land contract. Good Ideal for use as a workshop and storage males for sale. Su- level fertile farm SUPER HEAVY STEEL perb wool quality. REGISTERED SCOT- land, no rocks, FOR INFORMATION ON CANCELLED Call or fax for more TISH HIGHLAND CAT- Call For nearly square. Lo- ORDERS, CALL NOW! information. TLE, breeding stock cated north of Burr 30x50 40x60 (2 LEFT) (2 LEFT) 50x82 (1 LEFT) 50x100 .(1 LEFT) Jack & Barbara Danly and semen for sale. Classifieds Oak, Michigan. Ask- 06300 Boyne city Visitors welcome! ing $155,000, 30% Road Call evenings or down. Call 1-616- American Structures, Charlevoix, Ml iimnlr o n r i c 1-800-968-3129 489-5591. If no an- 1-800-340-4398. T f V v n C l IvJO. 49720 swer, leave mes- Charlotte, r.97 sage. Lease financing 1-616-582-7473 Fax 1-616-582-6540 RIVER cmr iigan for equipment LLAMAS ARE FUN HOOF TRIMMING Professional hoof Employment Opportunity vehicles & buildings AND PRACTICALI They make wonder- ful pets for hiking, packing, pulling carts, or just enjoy- trimming and sore feet wrapping. Competitive prices. Tom Vander Top Great opportunity for calf feeder. JOHNSON Complete Grain System E SYSTEM INC. • 100% tax deductible 1-616-837-6897 Medium sized operation in western • Hopper Bins ing. Their wool is THREE registered • Grain Bins • fixed payments valuable and they polled hereford Michigan looking for aggressive • Bucket Elevators • Dryer Service make outstanding breeding age bulls. • Millwright Service • Crane Service • min advance payment guard animals. Call One Al, MSU, Opti- person. Good wages, medical • Airstream Auto Dryers • GSI Top Dry for a visit, 1-616- mum, Z03. Two • Leg Towers/Catwalk • Specialists 677-3309. Ron & MSU and Rocky insurance and housing offered. Call & Nancy Laferriere Banner blood lines. Johnson System, Inc 616-875-8489 or 800-750-4754. TELMARKINC. Laferriere Uamas Rye Hereford Farm Marshall, Ml 49068 www.telmark.com (just northwest of Grand Rapids) Rogers City 1-517-734-3005 Rob Kamp Farms 1-800-962-1495 800-451-3322 ICHIGAN F A R M NEWS October 30, 1997 ^ ~ III Michigan Farm News Classified J V M FARM BUREAU TRAVEL mm am OF MICHIGAN Where will you be this winter? Call now to plan PINE PLANTATION OWNERS. For Display Advertising Information Call: your resort or New pine market cruise vacation. Airline Tickets developed. All types of pine. Timber har- vest plans provided by professional for- estry staff. Josh Merchant 800-292-2680 Ext. 6543 Cruises Mon. • Fn. NORTHERN Hotel Reservations 8 a.m.-5:30 p.m. TIMBERLANDS INC. Tour Packages 800-292-2693 In business over 35 years. 1-888-488-0234 ext. 6. ALL FARMERS & HUNTERS FREE 28 PAGE CATALOG O b t a i n s deer processing videos, knives, STANDING TIMBER Deadline for next issue is Noon, November 6,1997 saws, grinders, wrapping supplies, jerky AND VENEER: seasonings, and sausage making supplies Black River Hard- L.E.M Products, Inc. woods, Inc. P.O. Box 244 -MI 1-810-657-9151,days. Miamitown, OH 45041 513-353-4004 Call 1-517-845-3345 evenings. Call 1-800-968-3129 to Place Your (Jgg) WANTED: Old motorcycles, Classified Ad Today! r™—i •-lat— snowmobile and off road vehicles. 1965 or use the coupon below and mail or fax your and older. Call JD General at 1-517-676-0583. classified ad to Michigan Farm News BEDDING:General dry kilm WANTED: sawdust shaving. STOCK-UP: Used irrigation equipment, alumi- B u y Line/Daily N e w s 100 and 120 yard Sheepskin mittens, num tubing, PTO FAX: loads. hats, gloves, slip- pers, woolen gar- pumps, hard hose Call for prices. and soft hose trav- P.O. B o x 6, S t a n t o n , Ml 48888 1-517-831-5063 ments, yarn. Cata- 1-800-200-3571 log, available! elers. Buy, Sell or CYPRESS BOARDS/ Trade! Call Bellair's Hillside Rain Control FARM WOOD: 1x6, 1x8, 1x10, 1x12. Farms 1-800-339-9350 and Good for privacy The Sheep Shed Classified Ad Codes fence, growers. Also, 5hp air compressor, 5 file cabinets, 2 rhubarb 8351 Big Road, Clarkston. 1-810-625-2665. visa/Master Card Lake r™—i 1. Farm Machinery 10. Work Wanted 20. Wanted To Buy desks. Also, 2 pure- • Special Events I bred hunting dogs, STRAW AUSTRALIA-NEW 2. Livestock Equipment 11. Agricultural Services CHOPPERS 21. Special Events $250 each, OBO. ZEALAND-FIJI 1-248-264-1067 or We rebuild and bal- 15th Annual Dairy 3. Farm Commodities 12. Business Services 22. Recreation 1-810-739-3805. ance. Some ex- Tour. January 30- changes. We stock February 26, 1998. 4. Seeds 13. Business Opportunities 23. Financing chopper parts. Dairy faming, Inten- sive rotational graz- 5. Livestock 14. Real Estate 24. Investors Wanted. ENGINE REBUILDING ing, Research. Farms Farm Bureau our specialty. stays. Scenery. Va- 25. Building 6. Poultry 15. Real Estate Wanted Auto-Truck-Tractor- cation. Fee, $4595 members 20% Antique-Continen- all USA. $4395 LA. 7. Dogs and Puppies 16. Estate Sales 26. Lawn And Garden tal-Kohler-Onan- Wagner Farm Tours discount on Wisconsin engine 1-800-290-1880 or 8. Ponies/Horses 17. Auctions 27. Announcements dealer. 1-612-644-5390 Herbs, 70 years of service! for brochure. 9. Help Wanted 18. Antiques/Collectibles 28. To Give Away Vitamins, HARTS AUTO PARTS Minerals. Call Cecil, OHIO Financing 19. General 29. Vehicles 1-419-399-4777 toll free for THANK YOU PROBLEMS WITH Name .Phone ( ). MICHIGAN FARM YOUR LAND CON- Free Catalog. BUREAU for buying TRACT? my Angus steer at Late payments? Address. 1-888-447-5460. the Michigan State Back taxes? Prop- erty damage? 9 of Fair. Your support 10 qualify for pur- City State Zip. of young people in chase. We can agriculture is greatly help. FOR RENT: Dairy appreciated. 1st NATIONAL Classified Ad Code Requested. Number of Issues farm to someone Renee Thelen 1-800-879-2324. that has or could Ann Arbor purchase some Desired Insertion Date(s): cows to go with mine. Parlor, free stalls, machinery, Method of Payment housing. Call 1-517- TWO SEMI TRAIL- 593-2488. CASH, NOT OPINION ER Kentucky drop HARDY WOOD for quality tractors, deck moving vans. Check $ (payable to Michigan Farm News Classified) BURNING FURNACES. combines, heads 48' open and 45' The original all and round balers. set up for 6 horses Visa Card Number stainless steel out- 1-517-439-2440 and hitch wagon. Exp. Date side wood burning evenings. 1-810-784-5221. furnace for forced Master Card Number Exp. Date. air systems or hy- dronic systems as well as domestic Classified Rates - $8 for up to 24 words • 30 cents each additional word hot water. The Safety Store Write your ad here, including phone number and area code 1-517-496-3756 Call for SAVE 75% ON WORK 1 2 3 4 WEARI Uniform rent- al returns in excel- Classifieds lent condition. 5 6 7 8 Laundered, durable, very comfortable. Money back guar- 9 10 11 12 antee. Free bro- chure! Work wear 1-800-968-3129 express toll free. 13 14 15 16 1-800-909-9025 17 18 19 20 \ 21 22 23 24 Conveniently located to all attractions: 25 26 27 28 Pigeon Forge & Gatlinburg TN • Kitchens • Fireplaces 29 30 31 32 • Hot Tubs • Large Pool LOG CABINS Open Year Round 33 34 35 36 Call Toll Free IN THE 1-888-200-0625 SMOKIES for a FREE color brochure^ Circulation over 49,000 in State of Michigan r. ~ Michigan Sault Ste. Marie 54.9 53.6 4.7 1.0 1690 1823 1668 2190 2.81 4.21 3.07 3.38 Grand Rapids South Bend 60.7 62.2 4.9 3.9 2503 2843 2763 2843 3.27 3.44 2.61 3.44 --,-/,. ) Weather Lake City Pellston 56.5 5.5 1909 2190 2.32 3.38 Coldwater 59.6 1.3 2481 2764 3.30 2.95 Alpena 56.4 3.9 1940 2111 1.63 3.12 Lansing 59.2 3.2 2326 2764 1.88 2.95 Houghton lake 56.0 2.8 1948 2111 3.54 3.12 Detroit 61.5 3.8 2710 2788 1.91 2.55 ~5ummary Temperature Growing ~ays(.) PrecIpitation OutI_k Obs. Dev. from Actual I Actual Normal Muskegon 60.3 4.0 2315 2429 2.61 3.21 Flint 59.1 3.1 2352 2788 2.44 2.55 9/16/97-10/15/97 mean normal Au.. Au.. fllld1) finch) Vestaburg 56.5 0.4 2144 2506 2.79 3.11 Toledo 61.8 3.8 2696 2788 3.42 2.55 Houghton 55.3 4.9 1796 1910 5.48 2.94 Bad Axe 58.6 2.2 2123 2557 2.37 2.77 • Growing degree day accumulations are calculated with the Marquette 55.0 6.4 1171 1910 2.83 2.94 Saginaw 60.3 3.7 2518 2557 3.26 2.77 86150 -com- method and are summed beginning April 1, 1997. by Dr. Jeff Andresen, Agricultural Meteorologist, Dept. of Geography, Michigan State University large upper airridge across central and east- ern sections of the U.S. brought much- warmer-than-normal temperatures to Michigan, rapidly accelerating lateseason crop development rates.Mean temperatures during the firsttwo weeks of October ranged from 6 to 10 degrees above normal, including at least fiveseparate days in central and southern sections in which the max- imum temperature reached 80 F or higher. Com- 0 bined with generally drier-than-normal weather, the warm temperatures were incredibly well-timed and helped push corn, grape, and processing to- mato and other crops (which had lagged far be- hind normal phenological stages) closer to maturi- ty. The mild weather also accelerated crop dry- down rates,which should ultimately save growers subsequent drying costs. As of mid-October, strong EI Nino conditions continue across the equatorial PacificOcean and are expected to continue into the spring of 1998. The new NOANClimate Prediction Center outlook for November calls for near equal probabilitiesofbelow-, near-,and above-normal temperatures. Unfortunate- ly,the outlook also calls for an elevated riskof above- normal predpitation (espedally across southern sections of the state),which could cause delays in harvest activity.Looking further ahead, the outlooks continue to reflecttypicalEI Nino conditions in the Pacific-higher-than-normal odds of above-normal temperatures by latein the year,and for lower-than- normal predpitation amounts by mid-winter. • Cattlemen want probe into South Korean E. coli claims -rhe • asked National Cattlemen's Agriculture BeefDanAssociation Secretary Glickman has to look into South Korean claims that 18 tons of imported U.S. beef were contaminated with the bacteria E. coli. The cattlemen asked Glickman to ensure that the claim was not made in an attempt to curb U.S. beef imports. The group also said the Koreans acted "outside the standards of com- mon courtesy and normal relations between long-time trading partners" by announcing the problem to the public rather than using normal diplomatic channels first. "They're bad-mouthing our products," said Chuck Lambert, NCBA chief economist. "We want to make sure the factsare the facts." U.S. beef exports to South Korea lastyear totaled '255 million, down from .333 million in 1995. Glickman has agreed to meet with South Korean diplomats to discuss the situation .•