Practical Farmers of Iowa winter newsletter

Rick Exner (dnexner@iastate.edu)
Thu, 03 Apr 1997 10:33:04 -0600

THE PRACTICAL FARMER

QUARTERLY NEWSLETTER OF PRACTICAL FARMERS OF IOWA

VOL 11, #4, WINTER 1996/1997

I N T H I S I S S U E

1^ Can You Afford a Crop Rotation?

-- Richard and Sharon Thompson

5^ PFI Annual Meeting Report

5^Laura Freeman on Family Farming

-- Todd Kimm

6^Achievement Award to Keeney

7^Workshop Videos Order Form

8^ Winter Workshops

17^ Limited-Membership Co-op Issues

-- Rick Exner

18^ Shared Visions Year-End Update

Networking Meeting Report

19^ Rollin' the Cob Calving Time

21^ Sustainable Agriculture Internships

-- Rick Exner

21^ Seeking Work on Diversified Farm

22^ Notes and Notices

-- N.C. District Mtg. March 15

-- Agroforestry Broadcast

-- SARE Producer Grants

-- Sinsinawa Organic Meeting

-- International OCIA Meeting

-- Women in Ag. Meeting

-- What Is In a Name?

-- Compost Workshop

-- Two New Resources from MN

25^ Midwest Grazing Mtgs. Reports

25^ New Pasture Poultry Organization

26^ Identity-Preserved is Growing

-- Rick Exner

24^ On-Farm Research Opportunities

-- Mo Ghaffarzadeh

28^ PFI Profile: Paul and Karen Mugge

-- Jenny Kendall

31^ 1996 On-Farm Trials, Part I

-- Rootworms in Strip Intercropping

Michael Ellsbury

-- Wasps for Corn Borer Control

Joe Fitzgerald

-- Improving IPM

Mark & Julie Roose

-- Experience with IPM

Jeff Klinge & Deb Tidwell

-- Beauveria Corn Borer Control

Les Lewis

-- Three Perspectives on Beauveria

Brunk, Alert/Smith, McLaughlin

38^ Footprints of a Grass Farmer

-- Tom Frantzen

39^ From the Kitchen

-- Marj Stonecypher

40^ PFI Board Members and Addresses

41^ PFI Membership Application Form

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1^ CAN YOU AFFORD A CROP ROTATION?

Richard and Sharon Thompson, Boone

Can a farm be sustainable and profitable at the same time?=20

We try to be both, and we have kept records over the years

to tell how different cropping systems are performing on our

300-acre farm. We try to make these results simple to apply

by using standard custom farming costs for the field

operations performed in each system and ISU figures for

year-end commodity prices. This is a teaching model that

can be used to compare systems while giving the farmer some

privacy. If you worked up a similar analysis for your own

farm, you would use your particular equipment and land

costs.

We will focus here on a five-year and a six-year crop

rotation. We also use custom charges and Boone County yield

averages to construct a two-year, corn-soybean rotation for

comparison. This rotational system is constructed using

practices typical for our neighborhood, including use of the

disk, chisel plow, and field cultivator. All systems use

annual Boone County average land prices, and labor is

charged at $7 per hour. A detailed version of this

discussion appears in the Thompson Farm annual on-farm

research report.

Our long-standing five-year rotation is corn-soybeans-corn-

oats/legume-hay. It was used by Dick's father in the 1930s

and '40s, and we re-adopted/adapted it ten years after we

took over the farm. We have used ridge tillage in the row

crop years, which has made the system much more profitable.=20

Hay has been the leading money maker in this rotation. The

return to labor and management (profit after inputs and

land) has averaged $134.11 per acre, while corn following

hay averages $115.57 (Table 1, the graphics file table1.wmf,

available for downloading). The corn following soybeans has

produced $129.43 per acre, the soybeans average $127.65, and

the oats come in last at $74.14.

The six-year rotation has consisted of corn-soybeans-

oats/legume-meadow-meadow-meadow. Four fields near the house

have been used for this rotation, allowing us to graze two

of these fields each year. In 1991, for example, 60 beef

cows and their calves were pastured on 37 acres divided into

6 paddocks for a total of 222 cow-calf-unit-days. Corn

stalks and oat stubble are grazed in this system, which

increases the return for the rotation. We estimate grazing

returns by taking the percentage of the year spent grazing

times overall cattle net profits minus pasture establishment

expenses and land rent. In 1995, the soybeans were dropped

from this rotation so we would have three pastures each year

out of the four fields. The rotation is now

corn-oats/legume and five years of pasture, for a seven-year

cycle.

Table 1 and Fig. 1 (the graphics files table1.wmf and

Figure1.bmp, available for downloading) summarize income and

costs for each crop in the three rotations. The five-year and

six-year rotations are based on the actual yields from the farm,

while the corn-soybean rotation uses county averages. The

cropping systems on our farm utilize ridge tillage in row crop

years and no herbicides. The corn-soybean rotation, representing

practices typical of Boone County, uses mulch tillage, broadcast

herbicide and P and K fertilizer, and sidedressed N. We have not

included government price supports in these systems.

The five- and six-year rotations have higher gross income

than the two-year rotation because of higher corn and

soybean yields and baling crop residue for the livestock

operations. Our systems use more labor to haul manure and

make hay, but at least wages paid stay on the farm. Because

the longer rotations use more labor and less capital,

interest/opportunity cost charges are lower. Ridge tillage

and the oats/hay seeding without cultivation reduce weed

management and tillage costs (for example, by $44 in 1996)

compared to the two-year rotation. We figure in 1996 we

saved $26 per acre by spreading manure rather than

purchasing fertilizers. One of the biggest cost differences

is in corn harvesting and storage. In 1996, ear harvest,

handling, storage, and crib drying of corn saved $31.76 per

acre over combine harvest/handling/elevator drying, and in

1992 it saved much more (see side-bar). All the extra

charges (little foxes) end up to be a large cost (big fox in

the hen house).

This accounting isn't perfect, but it does make it clear

that profitability doesn't have to go out the car window on

the road to sustainability. In fact, we find that a lot of

low-cost options are also sustainable options in terms of

their effect on the land.=20

Saving on Corn Drying

Corn drying is another area farmers need to save some money.=20

In 1992, our narrow crib safely stored 29% moisture ear

corn. Figuring the yield of both systems as the Boone

County average of 164 bu/acre, we calculated the savings in

drying cost at $59.04 per acre. The additional pencil shrink

would have exceeded true moisture shrink by $10.43 per acre.=20

The elevator's priced-later option cost $8.20 per acre.=20

These savings total $77.67 per acre (see below). Drying

cost alone does not include harvest, handling, delivery or

storage expenses. Taking these into account, on-farm ear

drying and storage saved us $77.36 per acre in 1992.

Elevator vs. Ear Drying Costs

Elevator drying charge =3D $0.024/point

29% - 14% =3D 15% x $0.024 =3D $0.36/bu

164 bu/acre x $0.36/bu =3D $59.04/acre

Elevator "pencil shrink" =3D 1.4%/point

Actual moisture shrink =3D 1.18%/point

Extra shrink charge =3D 0.22%/point

15 points x 0.22%/point =3D 3.35% loss

164 bu/acre x 3.35% =3D 5.49 bu/acre

5.49 bu/acre x $1.90/bu =3D $10.43/acre

Price-later =3D $0.05/bu x 164/bu/acre =3D $8.20/acre

Total elevator drying =3D $77.67/acre

Combine harvest=3D $22.70/acre

Grain delivery=3D $10.82/acre

Storage =3D $16.40/acre

Total combine harvest, delivery, elevator drying and

storage cost in 1992 =3D $127.59/acre

Total crib drying =3D $0.00/acre

Ear harvest =3D $17.10/acre

Grain delivery =3D $18.04/acre

Storage =3D $15.09/acre

Total on-farm ear harvest, delivery, and crib storage cost

in 1992 =3D $50.23/acre

=20

5^ PFI ANNUAL MEETING REPORT

Sustainable Family Farming

keynote presenter: Laura Freeman

recorder: Todd Kimm

Laura Freeman, founder and president of Laura's Lean Beef,

gave the PFI Winter Workshops keynote, entitled Sustainable

Family Farming. Freeman shared her experience of launching

this Kentucky business that today boasts $30 million in

annual sales and works with a network of more than 100 farms

in the Midwest and Southeast. Her line of products has gone

from being offered at a small number of stores in central

Kentucky to being available now in 15 states and over 1,800

stores.

Freeman advised PFI members to do as she did: "learn how to

market to a niche;" her niche being the demand for

"all-natural" lean beef. She defined "all-natural" as beef

raised without antibiotics, growth hormones, fillers and

additives.

Freeman returned to the family farm in 1982, after

graduating from Yale and working as a journalist. The

cattle operation, in the Freeman family for six generations,

was a "mini-factory farm" that was losing $100,000 a year.=20

Freeman combined her concerns about diet and the environment

to come up with her niche idea, but like a lot of

"sustainable types," she didn't know the first thing about

accounting, capital, budgeting or cost control. =20

Freeman did, however, possess the understanding that she

would have to "take control of the product." This led to

direct delivery and intensive marketing.

Soon Freeman was meeting with non-agriculture entrepreneurs.=20

"I tried to pattern the growth of the company on non-farming

businesses," she said. Going outside the ag world for

guidance is a type of "cross breeding" that overcomes tunnel

vision and "really works," she added. Approach people who

"have done what you're doing and have gone a little bit

further." In 1991, Freeman went into partnership with John

Tobe, former CEO with the company whose restaurants include

Long John Silver's Seafood Shoppes. Tobe's marketing savvy

helped Laura's Beef grow twenty-fold.

Other advice Freeman offered included:

Pick your niche carefully. Once you pick a niche you

should stay focused on it and not stray from it very far.

Personalize your product. Freeman's face appears on her

product's label. "Somehow I didn't want my head on a piece

of meat," she joked; but the idea turned out to be a good

one. Another idea is to use the farm where the product is

produced as a way to personalize the product.

The development of good sales representatives is

important. These reps need to be well-trained and

well-paid. Freeman's reps are responsible for educating

store meat department personnel about her product.

You don't need to be fancy when you start out, but you do

need a message. You have to tell your story somehow. Once

this message has been developed it can be spread through

advertising, special promotions, etc.

Use discounting and sampling to introduce customers to

your product.

Provide a link to your customers. Examples included an

800 number, a newsletter and farm field days.

Team up with other organizations for events. Freeman

gave as an example her company's participation in an

American Heart Association heart walk.=20

6^ Keeney Receives Sustainable Agriculture Achievement Award=20

Dennis R. Keeney, director of the Leopold Center for

Sustainable Agriculture at Iowa State University since the

Center's inception in 1988, received the 1997 Sustainable

Agriculture Achievement Award from the Practical Farmers of

Iowa at their annual meeting in Ames on January 3. The

award is presented each year to an individual who has

advanced the cause of profitable, environmentally sound

agriculture in Iowa.

Keeney is a professor of Agronomy and Agricultural and

Biosystems Engineering at Iowa State University and also

directs the Iowa State Water Resources Institute. He holds

B.S. and Ph.D. degrees from ISU and a M.S. degree from the

University of Wisconsin. His research specialties include

the chemistry of soils, the cycling and efficient use of

nitrogen, land application of wastes, and soil as a source

of nitrous oxide.=20

7^ Workshop Video Order Form

PFI Winter Workshops Video Tape

o Tape 1 ($8.00 purchase) _$_________

Eight-hour tape contains keynote by Laura Freeman plus these

workshops: Marketing and Your Quality of Life (Bill

Burrows); Kansas grass-finished beef co-op; Alternative hog

production systems; Monitoring Sustainable Ag with

Conventional Financial Data (Dick Levins); Monitoring

sustainable ag with conventional financial data (Dick

Levins); Monitoring sustainable ag with conventional

financial data (Dick Levins); 'Fools Rush In' - value-added

farm-based business; and New Co-ops, New Possibilities

(Larry Kallem).

o Tape 2 ($8.00 purchase) _$_________

Eight-hour tape contains keynote by Laura Freeman plus these

workshops: 'Fools Rush In' - value-added farm-based

business; Marketing and Your Quality of Life (Bill Burrows);=20

CSAs and Direct Marketing; Monitoring Sustainable Ag with

Conventional Financial Data (Dick Levins); Systems Research

- What and How?; and What's Ahead for PFI?

.

Name: _______________________________________________________

Address: ____________________________________________________

State, Zip: _________________________________________________

Make checks payable to:

Practical Farmers of Iowa

2035 190th St.

Boone, IA 50036-9632

8^ WINTER WORKSHOPS

If you were not one of the 240 people at the PFI annual

meeting Jan. 3-4, you missed quite a bit: producer posters;

Iowa-grown foods; Laura Freeman's keynote; and workshops

featuring Iowa's best as well as out-of-staters who are

breaking new ground in marketing and on-farm research. See

the form on page 15 if you are interested in videotapes of

the workshops. Notes from our recorders follow:

Monitoring Sustainable Agriculture with Conventional Data

Participants: Dick Levins and Mike Rupprecht of the

Monitoring Team, (Doug Alert and Dave Lubben moderating)

Recorders: Don Davidson, Rick Exner

Mike Rupprecht is one of the farmers participating in the

Biological, Social and Financial Monitoring team, a

farmer-initiated research collaboration centered in

southeast Minnesota. As Mike explained it, "We wanted to

know what happens when you go to a grass-based system."=20

That question has led to a wide range of monitoring

inquiries, including, worm counts, fertilizer comparisons,

bird counts, and tracking changes in the species mix of

pastures.

Dick Levins described his background in economics and farm

management as fairly conventional. His world began to open

up when he saw a video of a farmer who was changing farming

practices for "family reasons." Levins realized that this

kind of reasoning just didn't add up from a strict economics

point of view. "Being profitable," to many economists,

consists of simply "making as much money as you possibly

can." But this is not the focus of many sustainable

farmers. Through the Monitoring Project, Levins learned

farmers wanted tools to help them monitor what they wanted

to do, not what someone else wanted them to do.

Levins came up with four general indicators that a producer

can use - in addition to profit - to track progress toward

sustainability. These are described, along with some

examples, in Monitoring Sustainable Agriculture with

Conventional Data, a $7 booklet available from the Land

Stewardship Project, 2200 Fourth St., White Bear Lake, MN =20

55110 (612-653-0618). Briefly, the four indicators are:

1) What percent of your gross income is coming from the

government? This may not be a "sustainable" source of

revenue, given changes in the political environment.=20

Further, a high degree of dependence may mean you are

"farming the program" instead of basing production on your

farm's resources.

2) What percent of your gross income are your energy and

machinery costs? These are the categories with the

potential to cause "environmental mischief," said Levins.=20

These expenditures also tend to leave the community

directly, without passing from hand to hand the way that,

say, money spent on skilled services would.

3) What percent of your gross income goes to support local

families, including but not limited to your own? Levins

commented that, in reaching the point where modern

agriculture could "feed everyone but employ no one," rural

communities were sacrificed. For there to be a sustainable

agriculture, the fabric of rural life must also be sustained

through jobs.

4) Balance of feed production and use. There needs to be a

balance between feed production and feed use, said Levins.=20

An imbalance toward feed production leads to dependence on

distant markets and distant production inputs. Feed

consumption without production leads to its own

dependencies, and manure becomes a problem rather than a

resource.

These four indicators are merely guides, not hard and fast

rules. Used over time they can show trends and stimulate

your thinking, he said.

In discussion the question was raised, "What if you put

values on the 'hidden costs' of agriculture? Will the

marketplace then cause people to farm more sustainably?"=20

Levins acknowledged that this is one approach economists

take in an attempt to make sustainable agriculture

"rational." However, he said, it does not adequately

explain the motivations of the farmers he has worked with in

the Monitoring Project. Their judgements involve a

"balancing act" of many considerations; this is so much more

complicated than a single-goal system that it defies

quantification by traditional economic methods, said Levins.

CSAs and Direct Marketing

Participants: Virginia Moser, Benton County Farm Fresh CSA;

Angela Tedesco, Des Moines; Shelly Gradwell, who is

responsible for ISU Extension displays and publications

concerning CSAs; Jeff Hall, who is responsible for a grant

enabling statewide support for a network of CSAs to be

called The Iowa Network for Community Agriculture.

Recorder: Jill Hoben

CSAs are much more than members providing weekly fresh

vegetables to shareholders. CSAs involve building a sense

of community, connecting people to land and to each other.=20

CSAs in Iowa have grown from 2 in 1994, to 11 in 1996, to

probably more than 20 in 1997!

Tips and topics covered in the discussion: research and

planning ahead; staggered plantings and compatible plantings

to extend the season; Extension publications and networking

with other CSAs. Also: listen to the consumer/customer -

what and how much they want. Definitely include a

newsletter with deliveries of produce. Include recipes and

what's going on at the farm. Economic opportunities are out

there for both small and large CSAs.

Alternative Hog Production Systems

Participants: Colin Wilson, Homer Showman, Jay Harmon (ISU),

Vic Madsen and Jeff Olson moderators

Recorder: Mark Roose

Colin Wilson: Swedish system and pasture system

construction details: 100 ft x 48 ft, 12 ft ceiling, with

four rooms, 4-in concrete walls

11 sows per 24 x 48 ft room, in "boxes" or pens

fronts are removed when pigs venture out for the first

time

sides are removed when all the fronts are gone

pigs weaned at 5 weeks

pigs stay in the building from birth to 9 weeks

water on south side, feed on north side

natural ventilation in summer, power ventilation in cold

weather

fans on the end of the building are attached to ducts in

the attic, so no noise to pigs

Homer Showman: six 30 x 70 ft hoop structures

4-in walls, posts on 6-ft centers

double curtain structure: slightly better feed

consumption in cold weather

hoop structure: fewer deaths, rate of gain better

75 6x5-ft round cornstalk bales per year per shed

100 bales this winter due to wet stalks and high humidity

Jay Harmon (ISU Ag & Biosystems Engineering)

shared data regarding environment in the hoop structure

at the Rhodes Research Facility

Systems Research

Participants: Allen Williams and Michelle Wander (IL), Mike

Rupprecht, Jay Dorsey (MN)

Recorder: Jenny Aquino Kendall

Two examples of applying a systems research model to farming

enterprises were discussed. The focus of systems research

is to bring together the land manager and the public concept

with the scientific concept, so that the information

generated at the university level goes through a

practicality test. Says Michelle Wander, "If I never

deliver the information to the farmer, it can't be used, and

so the research fails." Michelle, a soil scientist at the

University of Illinois, has been working with Allen Williams

on developing soil health indicators. Allen says "I started

doing one-at-a-time testing on my farm, but once I began

working with Michelle, I started focusing on the overall

soil health. My benchmark is the natural state of soils,

and comparing how well my soils stack up."

Michelle wants to help Allen through developing soil health

measurements that will enable Allen's and other farmers'

decision making. This collaboration takes the agricultural

research several steps further than the typical research.=20

Rather than focusing on some soil average, the intent is to

find measurements that will indicate what direction and what

steps the farmer can take to increase overall soil health.=20

Another thing that distinguishes this 'systems approach'

from the typical approach was the participation of Illinois

farmers before the beginning of the project. A process was

established that enables Michelle and other scientists to

maintain continuing communication between farmers and

university researchers.

This up-front calling together to a common meeting ground is

again a distinguishing aspect of the systems research

approach discussed by Mike Rupprecht, a Minnesota farmer,

and Jay Dorsey, a graduate student in soil science at the

University of Minnesota. Mike is implementing a 'whole

systems' approach to stewarding his farm. Says Jay, "Before

beginning, we ask ourselves, 'Are we asking the right

questions?' and we keep asking ourselves this question....

good research always generates more questions." Part of

this systems approach involves the Monitoring Project, which

is farmer-motivated. For example, the Minnesota farmers

began to ask "Why are there so many toads with 6 legs?" The

Monitoring project seeks to increase awareness and improve

people's observational skills, both for the university

researcher and the land steward.

One surprising and welcome outcome of the systems approach

for Mike has been the coming of Bluebirds to the Rupprecht

farm. Bluebirds had never been seen before. Mike noticed

that Bobolinks nested in his extended rest MIG pasture.=20

Through observation, he has seen how the presence of animals

helps to establish grass and seedlings.

What's Ahead for PFI?

Participants: Richard Thompson, Gary Huber

Recorder: Jenny Aquino Kendall

Dick Thompson began the session on the direction of PFI by

showing the numbers of the past and present - the amounts of

grants and monies received and disbursed since the inception

of PFI. He noted how PFI is now at a critical juncture as

far as determining how PFI will function in the future and

pay for its functions as well. "The lesson here is

diversify, diversify, diversify. Our future will include

more partners (than we have had in the past), and if we are

successful, there will be more players."

Gary Huber then unveiled the new PFI logo with its sound

bite of "Farmers helping farmers make decisions." One

comment on the logo was made, that ..."maybe it should say

'good' or 'better' decisions - since not all decisions are

good decisions!" Gary then discussed the key points of the

strategic plan that PFI has been working on with consultant

Duane Sand. In general, PFI needs to take the lead and be

proactive in determining the direction of PFI in order to

make the most of strategic opportunities that arise. For

the strategic plan and hence the structure of PFI to

continue to work, it's going to continue to need good

leadership and management.

One idea that PFI is close to being able to put together is

cooperative alternative marketing for farm products. PFI is

also beginning to explore the partnerships that can help to

make things happen.

Some concern was expressed on the part of the attendees as

to the nature of the proposed partnerships. "Let's be

careful who we partner with," and "we don't want the tail

wagging the dog" were some of the sentiments expressed by

PFI members in attendance. Also raised was "How are these

partnerships going to aid the person in high school who says

'I want to farm'?". Another member mentioned that "...it

has always been PFI intention to open the door rather than

close the door to other organizations." And members also

"...hope that we maintain the uniqueness of the PFI

organization, especially the research and education."

Duane Sand mentioned there is incredible pent-up consumer

demand for the activities of PFI, especially as our society

moves toward a market, rather than government driven way of

doing business. "... seven years down the road, all of Iowa

is going to need what PFI already understands."

Marketing and Your Quality of Life Goals

Recorder: Jenny Aquino Kendall

Participants: Bill Burrows, (Dennis Abbas and Tom Frantzen

moderating)

Bill Burrows is an energetic cattleman, teacher, and

'agri-preneur' from California who shared his life values

and marketing successes with a slide show and good

discussions. Bill practices Holistic Resource Management

and credits this systems approach with saving the ranch. He

talks enthusiastically about converting sunlight energy

through his cattle, which in turn are his grass managers.=20

Bill gave several examples of observing and thinking about

how his cattle could do work that normally is handled

through large machinery, such as using cattle to save 'head

cuts' (erosion gullies) in his pastures.

The focus of the talk, however, was on marketing what you

have, and marketing in accordance with your own values,

whatever they are. He cautioned people not to take his

ideas and directly apply them - they wouldn't work, unless

they were completely in line with your values. He began his

marketing strategy by throwing a huge barbecue for his

neighbors, friends, and anyone who would come, and they had

a brainstorm session about what sorts of activities/products

people would pay for. Bill continues to brainstorm with his

clients, and views his clients as his partners.

The Burrows ranch makes the bulk of its income from

conducting supervised 'outdoor experiences.' Bill is

careful to distinguish these outdoor experiences from

hunting expeditions, and in fact will not allow trophy

hunters on his place - "Trophy hunters don't fit in with my

value system, and I only want clients who do fit in with my

value system." So Bill first figures out his values, then

seeks clients with those same values.

One of the outdoor experiences at the ranch is hunting

ground squirrels. Ground squirrels are a huge problem and

damaging pest. People pay to come shoot the ground

squirrels, which Bill then feeds to the wild pigs (also a

huge pest). The pigs, he notes, understand the difference

between rifle types, as well they might, because another

experience he markets is hunting wild pigs. Through these

experiences, Bill is able to provide recreation, steward the

wildlife on his farm, care for his family, and have a great

time doing it.

One of the first questions to arise in the audience was

"This is Iowa, not California, that would never work here,

our customers aren't the same." Bill's response:

"Investigate your own value system first, and market that."=20

He also noted that he didn't market within a 300 mile radius

of his home - he draws his customers from cities farther

away, and mentioned that Des Moines and Chicago were ready

markets for the kinds of experiences that Iowa farm life has

to offer. Bill also treats his customers as more than

customers - they are his guests. "It all goes back to

defining your value system first and having customers who

can be more than customers, can be guests."

Another audience member commented, "The brainstorming

session seems like a real good idea, especially the bringing

in of people from far away to bring in new ideas." Bill

said it works great, but you do need to exercise judgement

and be selective. "Bring in people compatible with your

own value system." He also says, "It's important to relate

the money and funding sources to the ranch mission and

values in order to know if the money/funding idea is a good

fit." He ended with "You folks have something fundamental

that urban people want...think about what you can market

that matches that need to your values."

Fools Rush In: Managing a Farm-Based=20

Business

Participants: Laura Krouse, Laura Freeman, Jane Woodhouse,

Susan Zacharakis-Jutz, Mark Tjelmeland (moderator)

Recorder: Connie Tjelmeland

Laura Krouse - Raises Neals Yellow Dent open pollinated corn

since 1988. Sells it for seed. Small but consistent

market. Also sells hay, straw, corn, soybeans from farm.=20

Began a CSA garden in 1996 - 10 families,

$200/family/season. Limitations - hiring help - don't know

how to do this. For CSA customer - chose people who like to

cook, have big families and people who LIKE her.

Jane Woodhouse - a spinner and weaver, since 1979 has done

production weaving. Also raises dairy goats and wool and

meat-type sheep. Processes wool - cards and dyes - and

sells to hand spinners. Sells spinning wheels and natural

dye extracts. Now contracts out production weaving to other

weavers in Iowa City. Marketing: likes this part very much

- ads, brochures, etc.

Susan Zacharakis-Jutz - Bought an 80-acre farm in 1994 with

a goal to make use of land and buildings and make a living

(a job for herself, husband has full time job with

Extension). Criteria for evaluating ideas:

1. What does our family value doing? What do we love?=20

Susan grew up on a farm. The children love goats.

2. What are our skills? What are we willing to learn?

3. Consider the characteristics of our land - highly

erodible, rolling.

4. Location - 20 minutes from Iowa City and Cedar Rapids.

5. Financial - Where will get the money to do what we want

to do? Banker encouraging, found an alternative loan

program - Linked Investments for Tomorrow. They have been

raising dairy goats for 8-years. Market the milk through an

Amish cooperative. They finish 800 pigs on contract.=20

Market organically fed lambs.

Laura Freeman (President of Laura's Lean Beefr): response to

these three entrepreneurs:

Laura Krouse - She has a wonderful instinct for marketing,

has done good consumer research. There is a market for her

seed business. CSA movement is booming. Fairly low risk.=20

Don't necessarily have to live near rich people.

Jane - Her highly specialized business can be worldwide via

UPS. She can develop niches through the mail. It's good to

be able to contract out production - you can't market and

produce yourself into the ground. Contract out the

simplest, most repetitive jobs first. Hers is a child-

friendly business.

Susan - She is wise to think through her goals carefully and

the budget process at the start. She is doing a good job

matching her production to a niche.

Kansas Ranchers Create Grass-Finished Beef Market

Participants: Earl Wright and Annie Wilson (Tallgrass

Prairie Producers Co-op), Ron Rosmann (moderator)

Recorder: Todd Kimm

Earl Wright, market coordinator for Tallgrass Prairie

Producers Co-op in the Kansas Flint Hills, shared the

challenges and rewards of starting a cooperative that

collectively produces, processes and markets grass fed beef.=20

The co-op formed in 1995 and today sells up to $1,000 in

beef each week to an area hospital, restaurant and direct to

consumers. Nine family ranches are involved. The idea was

to finish cattle on the bluestem grass that has grown wild

on the Flint Hills for thousands of years. In the 1860s and

'70s Texas ranchers sent their cattle by rail to Kansas for

finishing on this grass. The low fat content of grass-fed

beef fit perfectly with the growing market for lean, tender

beef. Genetics and aging provided the remaining ingredients

to ensure tenderness and consistency.

Wright said he wanted to give listeners a "system you can

use. You don't have to sell beef. You can sell wickets if

need be." Wright said that by marketing their product,

farmers can add as much as 20 percent to the return on their

investments. He summed up the philosophy as "forming a

co-op and taking control of what you get for what you

produce." Saying such a task is "not easy, but doable,"=20

Wright added that a group can accomplish anything if it can

work together. If the group can't work together, then it

won't accomplish much.

Insights Wright provided on his co-op's success included:

The members of a co-op must be active, attending

meetings, etc. Tallgrass Prairie Co-op members meet once a

month.

Members should have a great passion for the project.=20

Members without this degree of passion tend to drop out.

Co-op members should have about 20 hours of group

training to define individual skills and develop a method

for decision making.

Two key members are needed to take on the responsibility

for the details of starting the business.

Grant writing support may be needed, especially if a

start-up grant is needed. Tallgrass Co-op got a $35,000

start-up grant.

It is important that an environment is maintained where

the benefit of the co-op is put above the self interest of

its individuals.

Co-op chairperson and rancher Annie Wilson next presented a

slide show demonstrating how to tell consumers the "story"

of a business. Messages brought out through the use of

slides depicting Flint Hills flora and fauna included:

The cattle live a "free and open life" and are not as

susceptible to disease as feedlot cattle.

No fossil fuel is used to harvest feed; the animals

harvest their own.

The co-op is committed to conservation of natural

resources. Wilson said the co-op's story is also told at

Tallgrass Beef Days, where consumers can meet the people who

raise their food.

New Co-ops, New Possibilities

presenter: Larry Kallem (Iowa Institute for Cooperatives),

Paul Mugge (moderator)

recorder: Todd Kimm

Larry Kallem, Executive Director of the Iowa Institute for

Cooperatives, explained how farmers can take advantage of

recent legislation allowing them to form or join value-added

co-ops. The law, which went into effect this summer,

provides for co-ops which are designed to process the

commodities farmers produce into forms closer to their final

use by consumers. Other states have allowed such co-ops for

some time. Examples of successful co-ops include American

Crystal Sugar Company in North Dakota and Minnesota Corn

Processors.=20

Under the law, a certain number of shares are issued, each

with delivery rights for a certain volume of a commodity.=20

More shares may be offered later if a co-op's facility is

expanded. The shares are transferable. They are marketable

and their value may appreciate or depreciate. Shares can be

sold when the original owner no longer needs the delivery

rights. The shares can also be used as collateral. At

least 60 percent of the equity and voting control of these

co-ops must be held by farmers.=20

Kallem said a group of beet farmers bought the American

Crystal Sugar Company 20 years ago. "At first they had a

rough go of it," he said, but after three years things

started to look up. Kallem added that co-op members need to

be committed to delivering their commodity of choice year

after year.

Kallem said there will be times when a farmer is selling to

a co-op for less than he could get on the market. This is a

sacrifice the farmer must make for stability. In the end,

that farmer will average a greater profit.

Radical changes in agriculture are posing two questions,

said Kallem: "who will control it and who will build? Many

believe farmers can be the answer to both, if they will."=20

He called value-added co-ops "the best game in town for Iowa

agriculture."

Kallem next showed a video giving an overview of several

value-added co-ops in Renville, Minnesota Co-ops there deal

in commodities which include pork, poultry and fish.

During the question and answer period, a woman worried that

farmers choosing not to join a co-op or get big won't "have

a chance." Kallem answered "there's no good reason in the

world why they can't compete," but added that these farmers

may need to form joint marketing agreements with other

farmers.=20

17^ LIMITED MEMBERSHIP CO-OPS: ISSUES RAISED

Rick Exner

One of the workshops at the PFI annual meeting was on

limited-membership cooperatives, a business structure

recently authorized by the Iowa Legislature.=20

Limited-membership co-ops have been a fixture in North

Dakota and Minnesota for some time. Iowa Institute of

Cooperatives Executive Director Larry Kallem began the

workshop with a short video of such co-ops in the Renville,

Minnesota area. Prior to the session, Larry said he

realized that if PFI members ever used this kind of co-op,

they would probably be on a different scale from the co-ops

in Renville, but the video provides some examples for

discussion.

The workshop was attended by a PFI member from Minnesota who

contacted us afterwards. Becky Ault, Austin, MN, wrote that

some of these co-ops have made themselves just as unpopular

as many of the industrial-style hog production corporations,

and for similar reasons. "They have split communities,

added anger to an already (long) list of farming stresses,

devalued the land surrounding the co-ops, and there are more

waiting behind the curtain to stretch the limits of what the

community can tolerate."

I visited with Mark Schultz, Policy and Organizing Director

for the Minnesota-based Land Stewardship Project (LSP).=20

Schultz said traditionally cooperatives have been for

service, not for profit. When a co-op becomes a corporation

that is itself involved in production agriculture, it

becomes farmers' competitor, and a formidable one at that,

he said. Size gives such co-ops advantages in access to

credit and prices, and size also leads to environmental

problems such as waste disposal and odor.

Schultz offered as example the Renville co-op ValAdCo (for

"value-added corn"), which was begun by some wealthy corn

and sugar beet farmers. Unlike many local hog production

networks, ValAdCo retains ownership of hogs and contracts

the finishing. They originally produced hogs under a

"breeding stock" exemption to Minnesota corporate farming

laws until it was shown that most hogs were going to market.=20

Schultz reported the co-op fought regulation to require 75%

of stockholders be livestock producers and 51% of

stockholders be farmers.

While LSP has no fundamental criticism of limited-membership

cooperatives devoted to activities like processing (say, a

pasta plant started by wheat growers), "raising pigs is a

farming activity, not processing," observed Schultz. "These

co-ops may be a Midwestern way to become (like) Murphy

Farms," he said.=20

19^ ROLLIN' THE COB

Editors' note: Our cob rollers were thinking ahead to

calving season when they got together for this column at the

end of January. Here are some of their tips for getting

through that time successfully. They also had one eye on

the cattle market.

Tom Frantzen

1. I prefer to use a low birthweight angus bull with an

angus-Limousine cross stock cow as a basic ease-of-calving

strategy. I have successfully adopted a calf to a different

cow by tying a large piece of the dead calf's hide on the

foster calf.

2. To estimate the acres needed to support a cow herd, I

multiply the cow numbers by 1.75. This includes winter hay.=20

We look at the entire farming system when evaluating the

economics of a cow herd. A diverse, long term rotation with

a cow herd and organic grain production looks to be the most

profitable. The only safe time to expand any business is

during depressed circumstances, low prices, excess

production, etc.

Ron Rosmann

Here are some of the strategies and experiences that we have

had dealing with the broad topic of calving management.=20

Nearly all of these lessons have been based on experiences

in raising cattle over the years. Some of these experiences

have been learned the hard way. That seems to be the teacher

that you remember the most. First a little background

information about our herd. We have 81 cows to calve this

spring. Twenty-four of them are first-calf heifers. The

predominant mother cow is Simmental-Red Angus. Our bulls

are predominantly Red Angus. Our heifers are bred to an

easy-calving purebred Red Angus who still has good growth

potential. We do use pelvic measurements when selecting our

heifers for breeding. I also use ADG's for selecting them.=20

We used to calve in February and March until about 10 years

ago. We were pulling too many calves, the calves got

scours, etc. Since learning about rotational grazing, many

other things changed as well. Now our main herd starts to

calve around April 15. The calves are born out in one of

the paddocks if at all possible, depending on the weather.=20

We have about a 70-day calving period. First-calf heifers

are calved starting around March 15. The bulk of these will

be born in the barn and then moved out as soon as possible. =20

We feed our cows differently than we used to. First of all,

they stay out in the fields all winter. Supplemental feed

is hauled to them on a field that will be plowed the

following spring and planted to corn. That way the feed is

spread out over the entire field in small piles, and so is

the manure too! The ration consists of one-third corn

stalks, one-third good hay, one-third oats-stubble hay. All

bales are tub-ground and mixed together. I should add that

supplemental feed is used only if necessary.=20

Here are some specific things that may help during the

actual calving time: First of all be patient, especially

with first calf heifers. Don't think you have to pull just

because you see the front legs sticking out for some time.=20

If you think there is a problem, put the cow in a stanchion

or a head gate. I quit the rope about 7 years ago. It was

a smart move. We now have a head gate with two swinging

gates so that the cow and calf-puller both have plenty of

room to swing. I should say that with 70 cows calving last

spring, about 4 had to be pulled. Three of these were

first-calf heifers.

If you do have a hard pull, or if the calf is big and has

had a hard delivery, get some colostrum into the calf while

the mother is in the headgate. Big calves may be suffering

from some oxygen deprivation which may contribute to not

learning to suck right away, thus the term "big dummy" seems

especially fitting. I use a stomach tube to get the

colostrum into the calf. I'll worry about the calf learning

to suck the next morning. If you can't get a calf to learn

how to suck no matter what you seem to do, try letting it

get good and hungry. You will probably win in the end as

the calf figures out food isn't such an impossible task

after all. The best place for a calf to learn how to suck

is with its mother out in the corner of the paddock on a

bright spring day. Sometimes, calves have a difficult time

sucking on teets that are too big or on milk-bags that are

too close to the ground. Consider getting rid of that cow!=20

One of the critical things that we continue to learn is that

the cow is supposed to work for you, not you work for the

cow. Use that as your guiding philosophy. =20

Sometimes you may have an orphan calf or a twin calf that

you want another cow to adopt. If you have a dead calf to

work with, the best thing to do is to skin the dead calf and

tie the skin on the calf you want the cow to adopt. This

usually works quickly. If we have trouble getting a cow to

accept another calf, she is put in the headgate with one leg

tied back so that you can work with the calf. A "working"

chute with side rails works even better as the leg does not

have to be tied up so she won't kick you. I usually hold

the calf up with my left leg. If this gets too tiring, I

prop the calf up on a bale of straw. Sometimes it may take

4-5 days for a cow to accept another calf, but we've always

won the battle so far.

Remember that calving problems should be the exception, not

the rule. But there will always be a few difficulties and

challenges. That goes with the business. We look forward

to calving each year with anticipation and excitement. It

truly is a joy to discover three or four new calves on a

bright spring morning when you go out to the pasture paddock

to check the cows. Have a great calving season!

Margaret Smith - Calving Management/Calf Care

We will begin calving this year on April 10 and have 14

heifers to calve. After two calving seasons, we know that

our RX3 composites (=BD Red Angus, =BC Hereford, and =BC Red

Holstein) have a shorter gestation period (278 days) than

average, so we can plan accordingly and not be surprised as

we were two years ago! We are learning to be patient with

heifers. I know that old-timers can sense when delivery of

a calf has gone too slowly and they need to lend a hand, but

I probably get as anxious as any of the young 'girls' if she

seems slow to deliver. I have found 'How to Handle Calving

Difficulties' (GPE-3653 in the Iowa Extension Beef Handbook)

a help in understanding the time frame and stages of a

normal delivery.

Stage I: The cow's contractions are evident every 4 to 5

minutes at the beginning of stage 1 and are about =BD to 3

minutes apart at the end of this stage. Toward the end of

stage I, the water bag begins to protrude through the

cervix, which is about _ dilated. This stage lasts 2 to 3

hours in a cow, but 4 to 5 hours in a heifer.

Stage II: During this period, the cow or heifer becomes less

aware of her surroundings and concentrates on her

contractions. The intervals between contractions still

varies from 1=BD to 3=BD minutes, but the animal's straining

becomes stronger. Once the water bag appears outside the

vagina (about =BD hour into stage II - longer for a heifer

with a big calf), the feet should not be far behind. This

is the time for caution. There is a temptation, if these

early stages have been slow, to hitch up to that calf and

pull. But when those hooves first appear, the cervix is not

yet fully dilated. Pulling too early can result in tearing

or rupture and a heifer that won't breed back. After the

feet appear, expect 30 or 40 strains (15 seconds to 1=BD

minutes apart) until the tongue appears. Another 20 strains

and the nose should appear (again, slower, with bigger

calves).=20

Another 50 strains will usually bring the head to light,

then 6 to 10 strains to full delivery.=20

Stage III: The final labor stage is passing the afterbirth.=20

This usually happens within 1 to 2 hours, but occasionally

may be several hours.=20

What an amazing process! It seems fraught with potential

problems, but usually follows Mother Nature's rules and

happens like clockwork. The calving publication also has

good diagrams of abnormal fetal presentations and

descriptions of how to manipulate the calf into proper

position. Based on the permutations that can occur (though

rare), my directions should probably read: 1-800-Call-Rich=20

(our veterinarian). The only time we should have acted

faster was with a large calf that was in a posterior

presentation with the back feet first. That situation does

call for a rush job.=20

For me, calving is the best and happiest time on the farm.=20

I can't wait for warmer weather and those little critters.

Time to expand the cow herd? All indications of our

position in the cattle price cycle tell me that it's a very

good time to be building our cow herd by retaining heifers.=20

We have been in that mode since starting with different

genetics in 1994 and would like to continue. We are

constrained, though, by availability of grazing land in our

neighborhood. We have seeded 60 acres for hay and grazing

that will cycle through a 5-year grain and forage rotation,

but need some permanent pasture as well to fill our needs.=20

Permanent pasture should hold up better under cow hoof

traffic during wet conditions and would allow us to graze

younger stock on the rotational pasture. Until then, we

will concentrate on tightening our breeding season and

improving grazing management for our 30-cow herd.

Roger Schlitter - managing the cycles

These thoughts apply to the cow-calf business in general. I

started out by thinking about managing calving, but I

decided you cannot manage calving without managing the cow

herd. The cow herd must have an adequate feed source that

provides the proper nutrition throughout the year. This

means a program that covers the entire year, because the

entire year is part of the calving process. Getting cows

bred in a timely fashion, having the right amount of

condition on the cows, and providing the right nutrition for

the unborn calf and, ultimately, the newborn calf - this is

a nonstop cycle. Nutrition is what makes all these items

fit together. Take a look at what the pork industry has

done in recent years to improve productivity, and you will

see that a closely managed nutrition program is a big part

of this improvement.

The cow-calf producer must have good quality breeding stock

to get the best results. Start with good seedstock and buy

good quality bulls or use AI to improve the herd. Long term

results will be best when you have a good herd to build on.

Finally, strive in all ways to be a least-cost producer.=20

This includes types of feed used, methods of harvesting,

storing and using the feed, and management of the pasture

program for optimum results. It also includes expenditures

for facilities and equipment, fencing, and land.

I find that there are always alternative ways of doing

things, and I am amazed at the resourcefulness of individual

producers in finding better ways of running their business.=20

It is helpful to keep an open mind to what other producers

are doing. But run alternatives through your own thought

process to see if something new or different can help you.=20

Those are keys to finding the things that will make you a

low-cost producer.

A few thoughts about expanding or rebuilding the cow herd.=20

A quick look at the past shows us that the cattle business

really does cycle on a regular basis. We have been at lower

price levels in recent years, and it is likely that we will

turn the corner and see better prices in the future. You

will want a young and possibly larger herd when that happens

in order to get maximum benefit from the better market. I

do not see this as a "guess when the business will be good"

management plan, but a steady, managed process of culling,

adding additional breeding stock when prices are lower,

and/or retaining additional heifers to add to the breeding

herd for the up part of the cattle cycle. This means you

just keep your long-term goals in mind at all times. Do not

make long-term decisions based on short-term circumstances.=20