FARM FORUM IS ONLINE INSIDE: MARKETING COOPERATIVES P. …€¦ · 23/02/2010 · INSIDE: MARKETING COOPERATIVES PLUS: >>>> Technology: Ag research and extension go private >>Business:

INSIDE: MARKETING COOPERATIVES

PLUS:>>Technology: Ag research and extension go private

>>Business: Take a second look at workers’ compensation>>Production: Hold the ‘N’ on soybeans

>>Farm Life: Young farmers balance idealism and economics

P. 5 SPLIT yOUR BUSINESS AMONG GRAIN BUyERSFARM FORUM IS ONLINE

FarmFOrUmwww.FARMFORUM.CA

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CONTENTS >> priNT

young farmers balance idealism and economicsfarm survival ensures their voices will be heard

Take a second look at workers’ compensationA lack of coverage could put your farm at risk

Fine-tune your spray techniqueNew products and application technology for faster, more accurate spraying

FarmFOrUm volume 24 | iSSue 2 | SPRING 2010

fArm forum.CA | 3

TEChNOLOGy BUSINESS PRODUCTION FARM LIFE

14 16 10 22

4 Editor’s note: get ready for the season ahead

5 Split your business among grain buyers: don’t let agri-business consolidation compromise cash flow

6 Supplemental ‘N’ for soybeans? little evidence to support application of extra nitrogen

20 Market intelligence goes co-op: these growers help each other find better prices

FarmFOrUmwww.FARMFORUM.CA

PublisherBayer CropScience

EditorSherry Butt

Associate Editordave Wreford

ContributorsCindy Bablitz, Jennifer Barber, Scott garvey, Joy gregory, gerald pilger and genesis Studio

Graphic DesignAaron mumby design

farm forum is published seasonally by Bayer CropScience.

Contact Farm Forum at:Bayer Crop Science Suite 200 160 Quarry park Blvd Se Calgary, AB, T2C 3g3 T. 1 888-283-6847 f. 1 888-570-9378 e. [email protected] www.bayercropscience.ca

Contents of this publication are copyrighted and may be reproduced only with written permission of the publisher, Bayer CropScience.

The views expressed are not necessarily those of the publisher.

publications mail Agreement Number 40743517

registered in CanadaCopyright 2010

websitewww.farmforum.ca

Return undeliverable copies to:Bayer Crop Science Suite 200 160 Quarry park Blvd Se Calgary, AB, T2C 3g3

On the coverJon Bagley, owner of Westman Aerial Spraying ltd., has been custom applying crop protection products from the air and on the ground for producers in the Brandon, mB, area for years. His company offers producers a choice of aircraft or ground sprayer application methods.

Ag research and extension go privatefarmers increasingly draw on research from private sector

COVER STORy

CONTENTS >> WeB FarmFOrUm.ca

New system speeds sprayer refillCover more acres in a day

www.farmforum.ca/refillspeed

Safety plans protect farm investmentKeep your family, employees and assets safe

www.farmforum.ca/safetyplan

when bigger is betterConsolidations that work

www.farmforum.ca/biggerisbetter

CASA

4 | fArm forum | SpriNg 2010

s h o r t ta k e s

EDITOR’S NOTESpring iS the time to fine tune plans for the new growing season. It’s also the time of year when you feel motivated to try different ideas, start a project that you’ve put on hold or get your finances in order.

This issue of Farm Forum will help you make the best of the season ahead. Our cover story looks at some new prod-uct and applica-tion technologies to make spraying more accurate, faster, safer and less expensive. It also looks at the pros and cons of ground versus aerial spraying.

There’s been talk of growers using supplemen-tal nitrogen to boost soybean output but, as you’ll read in our production feature, evidence to support routine application of extra nitrogen in soy-beans is lacking.

As public institutions move away from production agriculture and into research with a more public-good fo-cus, the door has been left open to more farmer-funded and private sec-tor research. In our technology story on page 14, we take a look at this emerging trend and the implications for growers.

If you’re considering workers’ compensation coverage and/or are concerned about the health and safety of your family and employees, turn to page 16. Here, the experts discuss workers’ compensation as a risk management tool. The support-ing website stories on farmforum.ca show you how to develop a farm safety plan and how to prevent inju-ries in the first place.

And this issue’s Outstanding Young Farmer story takes a look at how Grant and Colleen Dyck, na-tional co-winners from Niverville, MB, balance their ideals with the demands of running a business and raising three children. FF

wE CONTINUE TO INVEST IN CANADIAN AGRICULTUREin 2009, Bayer CropScience invested over $20 million in its Canadian operations – all in an effort to help growers and Canadian agriculture succeed today and in to the future.

The launch of our Canola Breeding Centre of Innovation in saskatoon will help ensure the best seed trait technology for canola growers for years to come. This launch was part of our $65 million investment in Canadian research that we’ve made over the last five years.

Our expanded production facility in regina will help supply our products across Canada. This is important, considering we’ve launched 20 products over the last five years and have another 30 products scheduled for the Canadian market by 2014.

Our improved seed cleaning and packaging facility in Lethbridge will help us en-sure growers across Canada have access to the highest performing canola hybrid seed in the market – InVigor®.

These investments are part of our mandate – to provide Innovation in everything We Do. It means we need to consistently find better ways to help you improve your farming operations, whether though seed or crop protection, or simply sharing our knowledge and resources. But it also means investing our time, resources and money into the communities you operate in.

We hope our innovation will play a part in your success this season. And we hope you will continue to play a strong role in the success of Canadian agriculture. FF

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M A R K E T I N G >> M I N U T ESPLIT yOUR BUSINESS AMONG GRAIN BUyERSdon’t let agri-business consolidation compromise cash flow By JOy GREGORy

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Ag marketing SpecialiSt Gary Pike used to tell farmers that con-solidation of ag-industry companies

spelled nothing but good news. Although he still believes that bigger is better over the long term, Pike now cautions farmers to take a closer look at how consolida-tion impacts specific aspects of their busi-nesses — increasing potential profitability in some areas and costing them in others.

For instance, going with the biggest input dealer in your area might save you money when buying fertilizer and fuel. But putting all your commodity sales in one corporation’s basket could cost you. “Producers who recognize the impor-tance of cash flow may want to spread the marketing side of their business around,” says Pike.

From a business perspective, corporate consolidation through buyouts, mergers and vertical integration makes good eco-nomic sense because it allows companies to increase profitability by expanding the reach of their operations. Given the economic climate, increased profitability is critical for companies dealing with re-gional and global markets, says Pike.

For the most part, Pike is bullish about consolidation in the crop input market. Here, consolidation makes it easier for farmers to buy products directly from head offices — arranging price, delivery and storage logistics well ahead of when the inputs are needed. Locking in prices on bulk buys is also essential to creat-ing the accurate crop budgets that smart crop marketers use to determine what commodity prices they can lock in to se-cure profits and improve cash flow.

On the equipment side, consolidation has also been good for producers. While you may have to travel farther to see a particular machine, you are no longer limited to what’s available on the local lot. Indeed, if a local dealer doesn’t have what you want, there’s a good chance it will be at another of the dealership’s affiliates. (One publicly-traded equipment dealership in western Canada now operates in 19 loca-tions across the prairies.)

Commodities are a different story. It’s no surprise that consolidation typically signals a drop in competition. But with big grain companies filling big contracts, Pike doesn’t see a lot of problems for pro-ducers who opt to sell most of their com-modities to the same company, especially if they follow sound marketing advice and sell portions of their production be-fore seeding, at the height of the grow-ing season and after harvest. For farmers with a good handle on their production costs, this approach protects profitability and cash flow. Because they know how much it costs to grow a particular crop, they can lock in profitable prices and time contracts to meet cash-flow needs for equipment or input payments.

Problems with that single-company approach arose in late 2009, however, when one of those “big markets” sudden-ly refused Canadian shipments of canola.

Pike figures China’s actions were pure politics. But here in Canada, the lessons were largely economic, since China’s deci-sion clogged Canada’s storage and trans-portation systems, causing local buyers to delay their purchases. Pike knows of farmers who were left with thousands of tonnes of canola they couldn’t move, even though they had contracts to sell.

Politics aside, there is a marketing lesson here, says Pike. He still advises

farmers to stick to best marketing practices and start scouting 2010 com-modity markets, forward selling a portion of this year’s crop before it’s even in the ground. He also recommends pricing some crops during the growing season and some after harvest. But avoid making deals with only one commodity buyer, he

cautions. Where possible, he adds, you might even want to look for buyers in different markets.

Looking ahead, Pike cautions Cana-dian farmers to prepare for more “gov-ernment noise” related to the World Trade Organization (WTO) talks on the horizon. “Countries are trying to posi-tion themselves going into another WTO round of talks and that’s going to affect our sales,” Pike says.

The bottom line is that even though bigger companies are usually sound, Pike now recommends against being tied to a single buyer, especially if cash flow is at stake. “You’ve got to spread it around if you can.” FF

FOR MORE INFORMATION VISIT US ONLINEONLINE ARTICLES profitability begins with accurate budgetswww.farmforum.ca/agbudgetsWhen bigger is betterwww.farmforum.ca/biggerisbetterADDITIONAL RESOURCESpike management groupwww.farmforum.ca/pmg

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Pike now cautions farmers to take a closer look at how

consolidation impacts specific aspects of

their businesses


For 5,000 yearS, farmers in China used soybeans to improve their soil’s nitrogen (N) content and improve yields in subse-quent crops. Today, soybeans enjoy world-wide popularity and are widely used in ev-erything from tofu, soymilk and margarine to industrial products such as hydraulic oil and adhesives.

And with new and exciting uses on the horizon for the humble soybean it’s little wonder farmers in non-traditional growing regions are experimenting with the crop.

According to published data from Mani-toba Agriculture, Food and Rural Initia-tives (MAFRI), newer varieties of the crop require only 2,375 to 2,675 corn heat units. That opens up much of the southern prai-ries to potential soybean production.

But introducing the crop to new regions requires that the proper strain of rhizobia — soil bacteria that fix N into a plant-avail-able form — be established in the soil. Rhi-zobia colonize the roots of young soybean plants and form mini N-fixing factories known as nodules. Without them, soybeans

are dependent on applied N. “We haven’t grown soybeans here for very long,” says Bruce Brolley, MAFRI’s acting manager of the industry focus section. “In some cases we don’t have the proper bacteria — Brady-rhizobium japonicum — in the ground be-cause it’s not native to the prairies.”

He recalls one 2001 case in Manitoba where healthy plants came up only on the hills. Everywhere else they grew without nodules. “We had to apply a rescue treat-ment of N at the R3 stage, because plants in the low spots were small and yellow. Excess water had caused the rhizobia to temporar-ily die off.”

So if top-dressing N can rescue a failing soybean crop, does it pay to apply it rou-tinely to improve yields? Some published research suggests it does. According to a few research papers published online, seed-ing soybeans with ad-ditional N showed marked improvements in yield. However, the plants began to rely less on nodules to fix N and started to ab-sorb it directly from the soil, minimizing one of the crop’s production-cost advan-tages.

But most of that research originates in China and other Asian countries. Accord-

ing to Horst Bohner, a provincial soybean specialist with the Ontario Ministry of Ag-riculture, Food and Rural Affairs (OMA-FRA) those results aren’t likely to be rel-evant in North America.

“The strains [of rhizobia] they have in Asia are extremely inefficient at fixing N,” he explains. “The strains we have here were all introduced for that purpose and are rela-tively efficient at getting the job done. In the scientific community it’s fairly well accept-ed that N fertilizer on soybeans is a no go.”

Brolley agrees with that assessment, “The research work I’ve seen doesn’t show it as conclusively successful,” he says. “The only reason we would recommend applica-tion of N in-crop is to rescue soybeans that had poor nodulation.”

Nevertheless, Bohner says, OMAFRA decided to experiment with the concept last summer in five different Ontario fields. At seed-ing, N was broadcast and deep banded five inches below the root zone at the rate of 100 pounds per acre.

Some results were contradictory. Over-all, though, combined results showed a yield difference of less than one bushel per acre between fertilized and non-fertilized plots. “It was a complete failure,” says Bohner.

SUPPLEMENTAL ‘N’ FOR SOyBEANS? SAVE yOUR MONEy By SCOTT GARVEy

p r o D u c t I o n

Some growers see a payback some years, but there’s little evidence to support routine application of extra nitrogen in soybeans

If top-dressing N can rescue a failing soybean

crop, does it pay to apply it routinely to improve yields?

Virgin soybean fields need correct rhizobiaPlanting soybeans in a prairie field for the first time requires a dose of the correct rhizobia strains to fix atmospheric nitrogen (N). That means applying a seed inocu-lant for at least the first three crops. “Once introduced, rhizobia survive very well in the ground,” says Bruce Brolley, acting manager of the industry focus section at Manitoba Agriculture, Food and Rural Initiatives (MAFRI).

When the rhizobia — Bradyrhizobium japonicum — become well established, Brolley says the amount of inoculant can be reduced or eliminated. Brent Reid, a farm production advisor at MAFRI, says research has shown applying both on-seed and granular, in-furrow inoculants is the best way to go with soybean crops in virgin fields.

“We recommend a granular (inoculant) as insurance in case there is any kind of stress,” he says. “Granulars are a little more hardy, so the root has another chance to get inoculated (if the on-seed treatment doesn’t survive).”

Farmers planting soybeans for the first time can expect an additional per-acre expense of about $4 for on-seed and $15 for granular, in-furrow inoculants.

Reid explains that annual cost can eventually be reduced as bacteria levels build up in the soil. Eventually the in-furrow treatment can be eliminated. However, he cautions producers against cutting back too early. “If you want to scrimp on some-thing, don’t scrimp on that,” he says.

But research shows growers might want to consider an on-seed inoculant indefinitely. Even those in more tra-ditional soybean growing areas could see a benefit from continuing use. Growers in Ontario and other soybean regions still get a one- to three-bushel increase when using an inoculant, adds Reid. “There are people in the U.S. who are still finding an advantage after 20 years.” FF

fArm forum.CA | 7

However, Kevin Marriott, a grower at Petrolia, ON, believes limited applica-tion of N has improved his yields some years. It depends on the season, he says. “In cool weather a small amount of N would pay you back.” But his experience has shown no benefit when the weather is warm and growing conditions are good.

“If you only knew what the weather would be like four to six weeks after planting, deciding whether or not to ap-ply it would be easier,” he says.

Marriott typically uses a broadcast ap-plication of mono ammonium phosphate mainly for the phosphate component, but the blend includes a small amount of N. “I’ve used upward of 20 pounds per acre,” he says. “It’s a very low cost for that much N. It feeds soybean plants early, gives them stronger roots and gets them going.” That way, he believes, crops get ready access to N before nodules de-velop, giving young plants a head start.

But Marriott admits it’s difficult to put an exact number on any yield advantage. “I’ve had extremely good yields in the past five years. It’s hard to know if that was from the nitrogen or the weather.” Based on what he’s seen in his fields, however, he intends to continue the prac-tice as long as fertilizer prices remain af-fordable. “I really feel I get a pretty good payback,” he adds. FF

Soybeans planted for the first time on prairie fields require a dose of the correct rhizobia strain to fix nitrogen.

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FOR MORE INFORMATION VISIT US ONLINEONLINE ARTICLES Spring maintenance keeps liquid fertilizer flowingwww.farmforum.ca/propermaintenanceoptical sensing allows delayed ‘N’ applicationwww.farmforum.ca/delayedapplicationADDITIONAL RESOURCESontario Soybean growers Associationwww.farmforum.ca/oNsoybeans North Central Soybean research programwww.farmforum.ca/soybeanresearchNCSrp’s information arm on soybean plant healthwww.farmforum.ca/soybeanhealth

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There’s been a big change in the herbicide landscape for wheat and barley. Tundra™ herbicide is the newest innovation from Bayer CropScience that will change the way you think about spraying.

It’s the first ever pre-mixed grassy and broadleaf formulation with no additional tank mixing required. No lost time, no equal.

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.Always read and follow label directions. Tundra™ is a trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

01/10-12517-01 FF

fArm forum.CA | 9

There’s been a big change in the herbicide landscape for wheat and barley. Tundra™ herbicide is the newest innovation from Bayer CropScience that will change the way you think about spraying.

It’s the first ever pre-mixed grassy and broadleaf formulation with no additional tank mixing required. No lost time, no equal.

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.Always read and follow label directions. Tundra™ is a trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

01/10-12517-01 FF


For faster, safer, cheaper and more accurate spraying,

check out what’s new in product and application

technology

Fine-tune your spray technique

The concept of applying crop protection products isn’t new — farmers have been doing it for decades. But almost everything used to get the job done has undergone a transformation.

Old flat-fan nozzles, common on sprayer booms for years, have given way to high-performance air induction nozzles that can deliver prod-uct metered from a variable-rate controller. These systems control droplet size, minimize drift and deliver greater spray volumes.

That’s just the tip of the iceberg. Producers and custom applicators now have more products to choose from and more ways to apply them than ever before.

To better meet growers’ needs, crop protection companies have even changed the size of containers they package products in. “A couple of years ago we added the mini-bulk and bulk options,” says Troy Basaraba, market development specialist for Bayer CropScience. “And we also went to the thousand- and two-thousand-acre totes on a couple of our products.” These innovations make handling and loading faster and easier: a real bonus if you have to treat a lot of acres.

But product not only has to be easy to handle, it must also be effective. In many cases, that means preparing custom blends to deal with field-specific conditions, such as herbicide resistance, or targeting a specific mix of weed varieties. Getting the right blend requires a little homework.

Fortunately, custom applicators and retailers have the necessary skills to provide some tutoring. Today, you can have a custom herbicide blend pre-pared by a retailer. Dry products, often used at a rate of only grams per acre, are ideally suited to doing just that.

“They let you make custom blends that target certain weeds,” says Jon Bagley, owner of Westman Aerial Spraying Ltd. near Brandon, MB. “You can

COVER STORY//BY SCOTT GARVEY

create a bag with just enough product for one sprayer load.” The water-soluble bags can just be dropped into a sprayer tank without exposing an operator to any chemical.

Although rubber gloves should be worn when handling these bags, there is no need for the precautions normally required when mixing liquids. And there are no containers to wash out. “The only thing left is the wrapper the soluble bag was in,” says Bagley. Those can be dis-posed of at a regular landfill because they are free of chemical residue.

Aside from adding a new level of workplace safety, dry products greatly simplify sprayer filling procedures. “If a customer has 40 acres to spray, then I’ll just make up enough for a 40-acre load. He can just put that whole bag into the sprayer,” says Bagley. “We’d have to ask a few questions. But we can build each load for him in those bags.”

Dry products are easier to ship and store, too. And they take up less ware-

house space; a plus for retailers. Unlike liquids, they don’t freeze, which means they don’t have to be stored in heated buildings. “We’re not going to get rid of liquid products anytime soon, but a lot of new products are going to a dry for-mulation” adds Bagley. If a dry product

spills, it’s much easier to clean up. “You just sweep it up and dispose of it in the proper way.”

So far, dry formulations represent only a small segment of the market. But even liquid products are now easier to handle. Chemical handling systems can be used to open and wash out containers, along with introducing product into a sprayer tank at precisely controlled rates. And they can also pump directly from large-

capacity totes, which further minimizes worker exposure.

For producers who don’t have the equipment or don’t want to apply crop protection products themselves, numer-ous custom applicators are willing to take over that task. And custom application

offers even more choices: do you want it applied by ground or by air?

High-clearance ground sprayers cover a lot of acres in a short time and leave only a narrow footprint in the field, minimizing crop damage. But air-planes don’t leave any footprint at all. And if fields are muddy, aircraft can easily go to work when ground spray-ers are parked waiting for conditions to improve. That may mean the difference

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Staying above the crop without leaving dam-aging tracks in a field may be the airplane’s biggest edge in the air-versus-ground debate

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Chemical handling systems make tank mixing product faster and easier.

Dry crop protection products give retailers an enhanced ability to custom mix application blends.

Bulk packaging avoids the need to empty and clean dozens of small containers.

Modern nozzles and variable-rate controllers meet a wide variety of application needs.

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Sectional boom control moves to air seedersJust as variable rate technology (VRT) and control of individ-ual boom sections made crop spraying easier and more ef-ficient, the same innovations are now being applied to seed and fertilizer placement. All major air seeder manufacturers offer VRT.

While these systems allow for control of multiple granular products at the same time, a couple of manufacturers have gone one step further to include flow control to individual sections of a seeder, minimizing overlaps. As seeder widths now stretch up to 90 feet, overlaps in irregularly-shaped fields can waste a lot of inputs.

Seedhawk, one company that offers this feature, calls it Sectional Control Technology (SCT). Chris Morson, Seed-hawk’s marketing coordinator, says the system uses the same Raven Viper Pro boom-control system available on sprayers to control seed and fertilizer flow. Seeders are di-vided into eight individually-controlled sections. When GPS senses any section is passing over previously-seeded ground, the system raises the openers and stops product flow.

SCT can also build field maps and communicate di-rectly with other comput-ers via a satellite Internet connection, enabling a farm manager to monitor seeding progress from an office com-puter. He could even track the amount of seed and fer-tilizer used.

Seedhawk claims field tri-als using the system have demonstrated a saving of up to 10 per cent on input costs. Seeders equipped with SCT were first produced in limited quantity for the 2009 season, and 2010 marks their first year of full availability.

Regina-based SeedMaster also offers a similar option on its line of seeding equipment. Norbert Beaujot, company president, says SeedMaster’s optional Zone Control feature can be controlled either by GPS, or by lifting overlapping sec-tions out of the ground and shutting off product flow with the flip of a switch inside the tractor cab. FF

between timely application and missing a spray window completely.

Bagley says while ground sprayers usually apply product at five to ten gal-lons per acre, aircraft can efficiently de-liver the same mixes in four to five gpa with no difference in efficacy. “There have been lots of studies on that,” he says. In Canada, manufacturers have to prove the prescribed rates of application for both ground and air work adequately so producers should see exactly the same results regardless of whether application was by ground or air.

The reason for the difference in rates, according to Bagley, is that spray drop-lets applied by aircraft tend to be smaller than from a ground sprayer, mainly be-cause of the turbulence created by the plane. That allows for better crop cover-age with less water.

But staying above the crop without leaving damaging tracks in a field may be the airplane’s biggest edge in the air-ver-sus-ground debate. Murray Richardson, a grower in the Brandon area, sees that as a huge advantage. “We used to tramp down two and a half acres in a quarter-section (with a ground sprayer),” he says. In a 40-bushel wheat crop, that amounts to a 100-bushel loss on every quarter.

Factor in the similar cost of ground and aerial applications and those yield losses go a long way toward offsetting the

cost of custom application. “The plane is only a dollar per acre more (without yield losses),” Richardson adds. That’s a defi-nite advantage as far as he’s concerned.

A ground sprayer, however, can op-erate in windier conditions than a plane and still minimize drift. But a plane can cover acres much faster when conditions are good.

“In some niches the airplane fits in very well, applying certain products,” says Bagley. “And there is no spreading of disease,” adds Jill Lane, executive direc-tor of the Canadian Aerial Applicators’ Association. When ground sprayers trav-el between fields, they can carry diseases as they go.

Although Bagley’s company provides both aerial and ground application ser-vices, he has a bias toward airplanes. “Our roots were in aerial application,” he says. “We believe the airplane is the better way to go for farmers.” And the airplane remains the only choice for some crops, like sunflowers. But where adja-cent crops are susceptible to drift, Bagley says he often opts for ground application.

According to Lane, farmers are in-

creasingly finding value in aircraft for crop spraying, particularly in the west. “We’ve seen an overall increase in de-mand for aerial application across much of the prairies during the past few years.” she says.

But whatever choice you make about products or application methods, it has to have a financial benefit, cautions Richardson. “You’ve got pencil it out.” And that is one of the few things about applying crop protection products that hasn’t changed. FF

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COVER STORY

GPS technology offers enhanced spraying capabilities such as variable-rate applications from prescription maps and sectional boom control to minimize overlaps.

pHoTo CourTeSY Seed HAWK

fArm forum.CA | 13

With Converge® XT herbicide, you get an

extended window of application with excellent

crop safety and the same trusted, season-

long grassy and broadleaf weed control of

Converge PRO. The patented safener lets you

confidently apply Converge XT from pre-plant

surface right up to the three-leaf stage of corn.

So you can keep on spraying and spraying

and spraying.

Keep on spraying

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.Always read and follow label directions. Converge® is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

01/10-12602

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thirty yearS ago, public institutions conducted virtually all ag-related re-search in Canada. Government depart-ments and universities were the focus of testing and innovation. Those same insti-tutions worked with farmers to put new ideas and theories into practice. Today, with the introduction of farmer-funded and private-sector research, the picture has changed dramatically.

“The federal and provincial govern-ments in particular have moved from re-searching production agriculture to look-ing at the implications of agricultural practices on the public as a whole,” says David Drexler, director, development and licensing, with Bayer CropScience. “This has created an opening for other research groups including private industry.”

As research manager at Agriculture and Agri-Food Canada’s (AAFC) Leth-bridge Research Centre, Dr. Brian Freeze has been involved in agriculture research and innovation for more than 25 years. He says AAFC remains the largest player in Canadian agricultural re-search, as it has been for over a century. But he acknowledges the emphasis of that research has changed, targeting all Canadians and not just farmers.

“We have shifted from research with a regional focus to a more national focus,” he says. “Today we work somewhat less on production agriculture and more on

issues with a public-good focus such as security of the food supply, environmen-tal impacts and Canada’s ability to pro-duce food. We’ve been successful when it comes to solutions to specific threats to the food supply such as rust and fu-sarium head blight.”

AAFC has also allocated resources to sector-based science clusters. Industry sets the priorities for these clusters and AAFC, along with university labs, leads the research that is coordinated by the industry groups. “In applied science we are becoming more tied into industry,” Freeze says.

“The amount of research we do in agriculture has actually remained the same or in some cases has increased,” adds Bruce Coulman, head of the Plant Sciences Department with the University of Saskatchewan. “We do a lot of work with private companies and producer groups. Often they approach us with a project but just as often we have an idea that requires the backing of industry.”

He says there is still plenty of applied research from universities, and industry has established research programs on certain crops and products.

While Bayer CropScience still collabo-rates with public institutions, more often the company is on its own as it tries to find product solutions. “Most of the time we have to produce 95 per cent of our data on our own and then submit it for public review,” says Drexler. “But be-cause we are on our own, to avoid charg-es of partiality we have to make sure our research is unimpeachable.”

He says private industry research needs to be conducted according to agreed methods, monitored externally and, finally, reviewed by the appropriate regulatory group.

“On the crop benefits side of things, we do that all on our own, or occa-

sionally with independent re-searchers,” says Drexler. “There’s nobody really in the public sector doing research

into product benefits anymore — it’s not in their mandate. But we still need to make sure government is aware of what we’re doing and why we’re doing it.

“Where there is value in the end prod-uct, companies like ours will be willing to


t e c h n o L o g y

AG RESEARCh AND ExTENSION GO PRIVATEfarmers still rely on government, university and ag college specialists to guide them through the challenges of modern agriculture, but increasingly they’re drawing on the skills and knowledge of the private sector as well By JENNIFER BARBER

The influence of producers is one of the big changes in Canadian

agricultural research

Bayer CropScience test field with InVigor hybrid canola.

fArm forum.CA | 15fArm forum.CA | 15

invest in the research,” he adds.Provincial government extension ser-

vices have for the most part declined dramatically since the 1980s. At one time the provinces took much of the research done at the federal and university levels and brought it to farmers in the field. To-day’s farmers often have to find their own solutions and they are vocal about what they need in terms of new research.

“The influence of producers is one of the big changes in Canadian agricul-tural research,” says Rick Holm, profes-sor of weed science at the University of Saskatchewan. “Through their check-off dollars they have chosen to fund research through their industry associations.”

He points to the Saskatchewan Pulse Growers as one group whose member-funded plant breeding programs have had a significant impact on their in-

dustry. University of Saskatchewan researchers, he explains, can apply to producer groups to source funds for par-ticular projects.

“There are opportunities in plant-related fields for those looking at getting into this sort of research,” says Holm. “The agricultural industry is buoyant — there’s plenty of innovation to be had. Right now our concern is that there are not enough scientists choosing agricul-ture as their career.”

Ashley Glover is a private consult-ing agronomist with B&B Ag Service in Mossleigh, AB. As public extension services diminish, she finds her role is to source current research and filter that in-formation for her farm clients. She says she has traditionally received a lot of that information from government and uni-versities. “Private sector resources are a

part of my search for information,” says Glover. “But right or wrong, some farm-ers view it as subjective information.”

She says that although more agrono-mists are now practicing privately, she still relies heavily on the information and experience provincial and academic re-searchers provide. “When those people retire, we will feel the gap,” she adds. “As conditions in agricultural research change, certified crop advisors are en-couraged to help ensure research contin-ues to be practical and precise, not quick and cheap.” FF

government research

• Agriculture and Agri-Food Canada’s Science and Innovation site has links to current and past research, its 19 re-search centres, and research programs and services.

Visit www.farmforum.ca/aaFc

• The newly formed Alberta Innovates, Bio Solutions Department of the Alberta provincial government links to research from four ag-based organizations that fall under the Bio Solutions umbrella.

Visit www.farmforum.ca/biosolutions

• The government of Saskatchewan con-tributes 2.5 million dollars each year to agricultural research.

Visit www.farmforum.ca/Skagresearch

• In Manitoba, the Agri-Food Research and Development Initiative provides funding for innovation in agri-food pro-duction and processing in the province.

Visit www.farmforum.ca/mBresearch

University and college research

• The University of Saskatchewan’s Col-lege of Agriculture and Bioresources site provides a host of links to research both within the University and also through its various industry partners.

Visit www.farmforum.ca/UofSresearch

• Research Information is available from the University of Guelph through its web-site or by linking to its various publica-tions on different areas of the industry.

Visit www.farmforum.ca/uguelphresearch

• The University of Alberta breaks down its agricultural research by faculty.

Visit www.farmforum.ca/Uofaresearch

independent services and expertise

• The Agricultural Institute of Canada’s Canadian Journal of Plant Science shares peer reviewed research findings.

Visit www.farmforum.ca/journalresearch

• The Canadian Consulting Agrologists Association site includes a searchable database for agrologists by location and field of expertise.

Visit www.farmforum.ca/ccaaresearch

• Many retailers have agronomists on staff, or can help farmers find an agronomist in their area. This listing of Interag indepen-dent retailers is a good place to start.

Visit www.farmforum.ca/findanagronomist

• The Canadian Weed Science Society is an industry-sponsored organization that links to weed-related information across the country.

Visit www.farmforum.ca/weedinfo

• No listing of agricultural research and services would be complete without a link to Environment Canada’s weather site.

Visit www.farmforum.ca/ envirocanadaweather

Farmers today have access to a seemingly endless supply of information via the internet. But there is such a thing as information overload. the challenge is often twofold: first, knowing where to find what you’re looking for and, second, separating the wheat from the chaff.

ag-based companies and industry associations are often good places to start. But many other websites are goldmines of information about research, programs and services that can help you get a handle on what’s new in the ag industry. here’s a selection:

FOR MORE INFORMATION VISIT US ONLINEONLINE ARTICLES personal interaction trumps internetwww.farmforum.ca/internetresearchglobal innovation brings local benefitswww.farmforum.ca/globalresearch

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Surf the net for ag information

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FarmerS who think they’re saving money by not buying optional workers’ compensation coverage for themselves or their employees may be putting their farms and estates at risk, says Ryan King, managing partner, King Capital Planning Inc. in Edmonton, AB.

“I’m a ‘big picture’ kind of guy and I don’t mind telling you that conversa-tions about compensation coverage for farmers and their staff are complicated. I work in one of the provinces where cov-

erage for farm owners and employees is optional, but that doesn’t mean there’s no need to discuss the question.”

Workers’ compensation programs across Canada are administered provin-cially, allowing for different applications in each province. For example, farm owner/operators in Alberta, Saskatch-ewan, Manitoba and Ontario can all opt into workers’ compensation insur-ance programs that provide these owner/operators, who produce the bulk of

Canadian field crops, with coverage. In Alberta and Saskatchewan, farm opera-tors can also opt into voluntary cover-age of non-family employees. But that’s not the case in Manitoba and Ontario, where voluntary coverage of non-family employees is not an option.

As of January 1, 2009, compulsory coverage in Manitoba was extended to include farms that employ paid workers. Farm owner/operators and family mem-bers who work on the farm in Manitoba


A lack of workers’ compensation could put your farm at risk. But even if covered, you might still be living under a false sense of security

b u s I n e s s

TAKE A SECOND LOOK AT wORKERS’ COMPENSATION By JOy GREGORy

remain exempt from mandatory coverage. WCB Manitoba figures show about 1,100 new ag-related busi-nesses have joined the program since the changes came into effect in January 2009, says Warren Preece, Workers’ Compen-sation Board (WCB) of Manitoba.

While mandatory coverage of em-ployees is not universal in Ontario’s farm industry, most categories of employment have required employee coverage for several years.

The real issue with workers’ com-pensation coverage is risk management,

says King. Rather than letting his farm clients think they’ll save money by not paying into a voluntary program, “I try to get them to consider whether the uni-versal coverage offered under these pro-grams is enough.”

The ceiling for maximum insurable earnings differs from province to prov-ince. Under On-tario’s Workplace Safety and Insur-ance Board, the maximum for 2010 is $77,600. In Al-berta, the maximum level of insurable earnings is about $72,000. “If an Alberta farmer shows an income of $120,000, then basically he’s only half covered. So yes, he needs to take a better look at how he’s going to live on half his income if he can no longer work or farm,” says King.

“Our approach is to look at every-thing from the point of view of how it impacts the estate. What does it mean to your estate and loved ones if you, as the owner and breadwinner, are not covered properly?” asks King.

In the end, King’s discussions with clients about workers’ compensation

coverage hit the same talk-ing points as their conver-sations about overall risk management strategies. When farmers tell King they don’t need insurance, he asks them to take a sec-ond look. When they tell him their wives can borrow money to run the farm until the estate is settled, for ex-ample, King delivers a swift reality check.

“If she’s never had a loan, never been involved with farm finances and has never had a credit card, who’s go-

ing to lend her money? Some people tell me she can get it from family. Really? I know it can cost tens of thousands of dollars just to get a crop in the ground, so I ask them what happened the last time they tried to borrow $500 from a family member.”

On the plus side, in addition to includ-ing disability benefits related to work-related injuries, workers’ compensation does remove the concepts of negligence and fault from legal consideration. This

no-fault approach means compensation kicks in without litigation.

But even with the obvious benefits of the no-fault provisions of workers’ compensation programs, King says most farms need to protect their operations (and estates) with additional private 24-hour insurance plans for owner/operators

and staff. Noting cases where there is a debate over whether an injured individual was real-ly “at work” when picking up supplies for a business, or traveling from point

A to B, King says it’s best to avoid the grey areas. “Is the guy at work? Well, it doesn’t matter under a 24-hour plan. If he’s hurt, he’s protected.”

King suggests most farm owners should explore options with a combina-tion of workers’ compensation and pri-vate coverage. There are usually good reasons to have basic workers’ com-pensation coverage and sometimes the premiums a director/owner can save by opting, say, for $20,000 coverage in-stead of the maximum, “can be used to supplement insurance coverage with dis-ability provisions specific to his needs,” explains King. FF

fArm forum.CA | 17

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The real issue with workers’ compensation coverage is

risk management

workers’ compensation programs across canada are funded by em-ployers (not by government) and the actual fees are based a dollar amount per $100 of payroll.

in Saskatchewan, for example, the premium rate for 2010 is $3.03 per $100 of payroll. Based on the maxi-mum assessable wage of $55,000, the premium in that province would be $1,666.50.

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“Ergo gergo Infinity FRGO.”(Take me to your Infinity Retailer)

– Zxilak Kon Remulak 5

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.Always read and follow label directions. Infinity® is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

Everyone is using Infinity® for its famous weed

control. Infinity belongs to a new group of

herbicides (Group 27) that provides superior

protection from the toughest broadleaf weeds in

the galaxy – including Group 2-resistant weeds.

It’s a simple and flexible broad spectrum solution

that gives you infinitely better control in wheat,

durum and barley. Infinity’s reputation is out of

this world.

Visit us at LightYearsAhead.com

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fArm forum.CA | 19

“Ergo gergo Infinity FRGO.”(Take me to your Infinity Retailer)

– Zxilak Kon Remulak 5

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.Always read and follow label directions. Infinity® is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

Everyone is using Infinity® for its famous weed

control. Infinity belongs to a new group of

herbicides (Group 27) that provides superior

protection from the toughest broadleaf weeds in

the galaxy – including Group 2-resistant weeds.

It’s a simple and flexible broad spectrum solution

that gives you infinitely better control in wheat,

durum and barley. Infinity’s reputation is out of

this world.

Visit us at LightYearsAhead.com

01/10-12519-01 FF


in an era oF government mandated, check-off funded commodity groups, there is one organization that is strikingly dif-ferent — the United Potato Growers. A creation of potato growers themselves, this federated cooperative has a mandate to provide member growers with more and better market and production information.

Ray Keenan, a PEI potato grower and chairman of the United Potato Growers of Canada (UPGC) says, “The prime ob-jective of UPGC is to improve marketing through better data collection and infor-mation analysis. After all, you cannot manage what you do not know.”

Barb Shelly, communications officer for the sister organization United Potato Growers of America (UPGA), describes the UPGA as the means for potato grow-ers to take control of their own indus-

try. “By working together, growers have achieved improvement and stability in prices and markets.”

Creation of a federated cooperative of potato growers began in Idaho in 2004. According to Shelly, growers often lost money in the volatile potato market by competing with each other and overproduc-ing. “They were not producing to demand because they simply did not know what that demand was.”

Under the 1922 U.S. Capper-Volstead Act (The Co-operative Marketing Associations Act) that allows growers to work collectively to market agricultural production, Idaho growers created a state cooperative intended to

manage the Idaho potato supply. These growers also encouraged potato growers in other regions to create their own supply management cooperatives. That initiative triggered 10 grower cooperatives. Within a year, it became apparent that national coordination of these groups was needed if the goal of stable potato pricing was to be achieved. So in 2005 the UPGA, with a head office in Salt Lake City, UT, was

created. The mandate of this federated co-op is to manage national potato production to ensure a consistent supply of high quality potatoes at a reason-able price.

According to Shelly, information gathering and dissemination is key to managing the supply of potatoes, and this is the primary focus of the UPGA. “The UPGA gathers potato supply num-

b u s I n e s s

Ninety eight percent of Canadian potato growers are now represented by

the UPGC

Canadian potato growers mirror a u.S. information network that helps them anticipate supply and price

GOOD MARKET INTELLIGENCE hEADS OFF BAD PRODUCTION DECISIONS By GERALD

PILGER

bers directly from growers. Members also provide information on quantity of potatoes in storage, production costs, and shipping. As well, UPGA staff moni-tor demand for potatoes.”

The vast amount of data collected, explains Shelly, is then analyzed and con-verted by UPGA staff into supply and de-mand information that growers can use to develop their individual marketing plans. Any member of the UPGA can access the information at any time via a members-only section of the UPGA website.

Shelly says the biggest benefit of this system is the quality of information generated. “UPGA members love grow-ing potatoes. They recognize the need and value of good information and so the data they provide is of high quality. Weekly conference calls between the co-ops, and website updates three times a week, keep the information current.”

In Canada, provincial potato grow-ing organizations have worked to sup-port and promote the potato industry for years. As a result, market information has been largely provincially based. See-ing the benefits the UPGA has achieved by sharing information nationally in the U.S., the Canadian provincial potato as-sociations supported establishment of the UPGC in 2006. As in the U.S., the UPGC was launched to improve potato market-ing through better information and anal-ysis. Ninety eight percent of Canadian potato growers are now represented by the UPGC.

“The prime objective of UPGC is to improve the data system through moni-toring selling prices, truck rates and avail-ability, shipments, and storage, as well as crop and weather conditions throughout the growing season,” says Keenan. “We want to make sure the user’s potato needs are met, that no sector is shorted, and that we supply all the potatoes ordered.”

Canadian potato growers can also access up-to-date market information through the Internet. As well, regular tele-phone conference calls are held to share market information with members. And the UPGC has also partnered with industry to give growers educational opportunities.

Gord Medynski is director of sales and purchasing for Patates Dolbec, a large, diversified farm in St-Ubalde, QC. Each year, 3,000 acres of the 10,000-acre fam-ily farm is planted to potatoes for table, seed and processing markets.

“UPGC helps growers exchange infor-mation and share market intelligence. We can find out about supply and demand across North America. We also learn what varieties are working for other growers, and hear about new technology that may have a fit on our farm,” says Medynski.

“I am not always able to participate in the UPGC telephone conference calls due to timing but I can contact other UPGC grow-ers, many of whom I have never met face to face, to get their thoughts on the market.”

While the UPGC provides only mar-ket information, the UPGA has gone one step further and now makes recommen-dations to growers about the number of acres of potatoes to plant in an attempt to balance supply and demand.

Due to above average yields last year,

high potato stocks and reduced de-mand due to the economic downturn, the UPGA is recommending its growers reduce 2010 acreage by 25-30 per cent from their base (2004) level, to main-tain prices. FF

fArm forum.CA | 21

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A FOR MORE INFORMATION VISIT US ONLINEONLINE ARTICLES Co-op membership brings market benefitswww.farmforum.ca/upgCbenefitsCooperatives generate timely market intelligencewww.farmforum.ca/upgCmarketinfoADDITIONAL RESOURCESunited potato growers of Canadawww.farmforum.ca/upgCunited potato growers of Americawww.farmforum.ca/upgAfarm cooperatives info/ Washington State university www.farmforum.ca/WSucooperatives

Through a stra-tegic alliance with Bayer CropScience, United Potato

Growers of Canada (UPGC) offers its members opportunities to improve their operations through seminars.

Bayer has renewed its commitment to the United Potato Partners Program for 2010. This is the second year the company has sponsored educational seminars for potato growers in Canada. “We’re committed to the industry, and these seminars help growers maximize production and profitability,” said Dave Kikkert, portfolio manager, horticulture, for Bayer CropScience.

The seminars also help UPGC meet its primary goal of providing timely in-formation to potato producers across the nation. “We are pleased that Bayer CropScience has recognized the UPGC initiatives as important to the sustain-ability of potato production,” said Ray Keenan, UPGC chairman, in a January 2010 announcement.

Rob Van Roessel, a potato grower at Bow Island, AB, attended an Alberta seminar last year. “Presentations were made on the Canadian and U.S. potato

markets,” he said. “I took home very good market and financial information. Bayer also gave an update on its prod-ucts, and information was provided on potato economics and production costs.

“The partnership is a natural fit,” added Van Roessel. “Bayer is a primary supplier of inputs used by potato grow-ers. I appreciate the company’s support of our industry through projects such as this.”

Because of their success and ac-ceptance by so many producers, these educational seminars will be adopted as a cornerstone of UPGC moving forward, said Keenan in an online message to members. “There is no better marketing tool for producers than to have knowl-edge of the North American potato in-dustry.”

Bayer also partners with United Pota-to Growers of America, sponsoring semi-nars across the U.S. This year, seminars will be held in nine potato growing areas south of the border. FF

To check for upcoming seminars in your area visit www.unitedpotatocanada.com

Seminars point potato growers to top profits

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fa r m L I f e

laSt DecemBer in ottawa, in a room filled with hundreds of their peers, Grant and Colleen Dyck of Niverville, MB, took top honours in Canada’s Outstanding Young Farmers’ Program. They shared the award with co-national winners Greg and Tania MacKenzie of Stratford, PEI. (See the MacKenzies’ story in the Winter 2009 issue of Farm Forum.)

“The calibre of alumni in the Out-standing Young Farmers’ organization is impressive,” says Grant. “This is a really progressive group to be involved with.”

Grant and Colleen, both 32, embody the spirit of the Outstanding Young Farmers’ program. With a constant stream of innovative ideas, a great work

ethic and a positive attitude, the couple juggles the demands of three companies and three young children, Leo (2), Oskar (4) and Georgia (6).

The couple run a second-gen-eration, 12,000-acre grain and oilseed operation dubbed Artel — meaning a group of people working together toward a com-mon goal. Artel has seven full-time and 18 part-time employees.

Grant is also co-owner of WoodAnchor, a reclaimed lumber and wood products company spe-cializing in unfinished and pre-finished wood flooring using old timbers from

prairie grain elevators, trees cut down due to Dutch elm disease, and other spe-cies cut down due to development of

farmland. WoodAnchor is one of only a few providers and manu-

facturers of LEED (Leadership in Energy and Environmental Design) eligible wood products in Canada.

“Currently WoodAn-chor is the only reclaimed wood flooring manufac-turer between BC and east-ern Ontario and we’re the

only wood company in North America specializing in reclaiming landfill-divert-ed elm,” he says.

yOUNG FARMERS BALANCE IDEALISM AND ECONOMICS By CINDy BABLITz

The Dyck family L to R: Leo (2), Colleen, Georgia (6), Grant and Oskar (4), national co-winners of the 2009 Canada’s Outstanding young Farmers’ Program.

Colleen leads an active lifestyle, with hopes of participating in a triathlon down the road. She’s recently started The Gorp Project, creating a high quality, great tast-ing energy bar made with natural ingredi-ents, many from their farm. (For a more details on The Gorp Project, visit www.farmforum.ca/gorpproject.)

Grant took over the family farm when his father passed away suddenly nine years ago. The ensuing seasons of experi-menting in food production brought a host of ideas to the dinner conversation including the viability of organic chicken soup and hemp hearts.

Idealists at heart, the pair try to bal-ance the responsibilities of being part of the global community of food producers while at the same time caring for the en-vironment, their family and community. They practice zero-till or minimal-till and strive to improve efficiency, decrease op-erating costs and minimize resource use.

“There isn’t a lot of black and white in agriculture,” explains Grant, “And as producers we have to be open minded: a high-volume, low-margin farm is go-ing to sustain itself. We do feel we’re in a noble occupation.”

Adds Colleen, “you won’t have a voice unless you survive. Our goal is to contin-ually move toward what works best for our family and our community. There’s a balance between idealism and economics we’re constantly trying to strike.”

The ethics of food production has seen some press as of late. And, accord-ing to Grant and Colleen, one fallout of the rural/urban gap is a real world disconnect between questions of practi-cal production viability and theoretical food-related morality.

“Everyone eats, so everyone’s entitled to an opinion,” says Grant. “But a lot of times, the latest magazine headline is taken as testament. Food education can’t stop there, however. A lot of fear and misinformation is being generated, with issues sometimes raised by media for shock value.”

What’s clear is that these outstand-

ing young farmers are ready to take on the challenges today’s issues bring to the table without dulling their pencils. A sharp focus on the bottom line will ensure long-term viability. That way, their voice can lead future generations of food producers. FF

fArm forum.CA | 23

The calibre of alumni in the Outstanding young Farmer organization is impressive

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Georgia striking a pose in the family truck.

FOR MORE INFORMATION VISIT US ONLINEADDITIONAL RESOURCESArtel farms www.farmforum.ca/artelfarmsThe gorp projectwww.farmforum.ca/gorpprojectWoodAnchorwww.farmforum.ca/woodanchoroutstanding Young farmers’ programwww.farmforum.ca/oYfcanada

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woodAnchor is one of only a few providers and manufacturers of LEED eligible wood products in Canada.

Grassy weeds, there’s a new predator on

the farm. Meet Puma® Advance herbicide.

Its innovative formulation delivers superior

crop safety and refined wild oat control

in wheat and barley without having

to clean out the sprayer.

Available in convenient

1000 acre BigBoys totes.

Seek and destroy.

BayerCropScience.ca or 1 888-283-6847 or contact your Bayer CropScience representative.Always read and follow label directions. Puma® is a registered trademark of Bayer. Bayer CropScience is a member of CropLife Canada.

01/10-12518-02 FF

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FARM FORUM IS ONLINE INSIDE: MARKETING COOPERATIVES P. …€¦ · 23/02/2010 · INSIDE: MARKETING COOPERATIVES PLUS: >>>> Technology: Ag research and extension go private >>Business: