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Agricultural Conservation Innovation News
September 28, 1998 Issue No. 2
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Produced and distributed bimonthly via e-mail by the Agricultural
Conservation Innovation Center (ACIC), a private non-profit organization at
2234 S. Hobson, Charleston, SC 29405-2413. 843-740-1325, 843-740-1331
(fax), website <http://www.agconserv.com/>. For a free subscription or to
unsubscribe, please e-mail your request to <tagreen@compuserve.com>.
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Contents
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I. Sponsoring organizations needed to speed innovations
II. Excessive rainfall risk policy available
III. Corn rootworm policy to accept recommended scouting protocols
IV. Risk Journal: Risk aversion among crop consultants
V. ACIC meeting schedule for 1998-1999
VI. About ACIC
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I. Sponsoring organizations needed to speed innovations
Question: What's the fastest way to gain farmer adoption of new,
conservation-enhancing techniques?
Answer: Conduct risk-free demonstrations on farms in every county!
Grower associations, Extension offices, Conservation Districts,
agricultural input suppliers, crop consultants and other groups can now
participate in a new program to speed adoption of innovations to benefit
their members, constituents, customers and clients.
Most farmers are reluctant to adopt new techniques even if the innovation
has solid research behind it and promises to lower production costs and
enhance conservation. It's only natural. How much of your annual salary
would you bet on something new you had heard or read good things about, but
had never experienced first hand?
A new program developed by ACIC in collaboration with IGF Insurance Company
can provide this first-hand experience without risk. The program provides
for testing of innovative techniques on a portion of a farmer's acres. A
low-cost insurance policy will reimburse the farmer for any yield shortfall
between the innovative field and a comparable field. The comparable field
must be managed in exactly the same manner as the innovative field, except
for the innovative practice.
This split-field approach has increased adoption of no-till in cotton
fields, innovative disease management in apple orchards and IPM practices
in tomato fields. Farmers have adopted these new innovations more rapidly
because they saw the innovation practiced successfully on their own or
neighboring farms.
Sponsoring organizations will assist ACIC in clarifying the benefits and
risks associated with an innovative practice, recruit farmer participants,
ensure sufficient technical support and help adjust any claims.
ACIC requests assistance from potential sponsor organizations to identify
projects where insurance coverage would enhance farmer participation. If
you are aware of a Best Management Practice (BMP) or Integrated Pest
Management (IPM) innovation that might benefit from risk-free demonstration
on farmer acreage, or for more information, contact Jim Quinton, ACIC, 2234
S. Hobson, Charleston SC 29405. 843-740-1325, 843-740-1331 (fax),
<Jim.Quinton@agconserv.com> (e-mail).
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II. Excessive rainfall risk policy available
Applying nitrogen to field crops in two separate applications reduces
runoff and leaching and increases yields in most years. The savings in
input costs can be as high as 40% over single nitrogen applications.
Why aren't all farmers using this technique? In some years, excessive
rainfall during late spring can prevent farmers from making the second
application of nitrogen, resulting in depressed yields. Farmers are
understandably reluctant to take that risk.
Next season for the first time, farmers will be able to purchase an
insurance policy to reimburse them for losses suffered due to excessive and
untimely rainfall. The policy was developed by ACIC and will be offered
through American Agrisurance in several states, subject to state regulatory
approval.
The policy can also benefit farmers using a post-emergent herbicide
strategy as an alternative to atrazine. For more information, contact Tom
Buman, Agren, 312 W. 3rd St., Carroll, IA 51401. 712-792-6248, 712-792-6175
(fax), tbagren@netins.net (e-mail).
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III. Corn rootworm policy to accept recommended scouting protocols
A new insurance policy is close to completion that will insure growers who
follow a crop consultant's advice not to treat for corn rootworm in
corn-on-corn rotations. This policy, expected to be available in several
corn belt states in 1999 subject to state regulatory approval, removes the
risk that the consultant's recommendation may be wrong, resulting in
unacceptable rootworm damage.
Typically, crop consultants perform a sampling routine for corn rootworm
beetles in late July to early August. Based on these sampling results, the
consultant will advise the farmer if a soil insecticide treatment is
justified for rootworm larvae the following spring.
Farmers who have had their fields scouted for rootworm beetles by qualified
crop consultants using recommended scouting protocols will be eligible to
purchase the policy when it becomes available.
For more information, contact Tom Buman, Agren, 312 W. 3rd St., Carroll, IA
51401. 712-792-6248, 712-792-6175 (fax), tbagren@netins.net (e-mail).
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IV. Risk Journal: Risk aversion among crop consultants
Crop consultants have a tough job. They do it well, as evidenced by a
survey conducted by Iowa State University indicating that 74% of farmers
report a $2 to $5 return on every dollar they spend for crop consulting
services (see http://www.ipm.iastate.edu/ipm/ncr/info/survey.html for
survey results).
On the other hand, crop consultants suffer from the same aversion to risk
that afflicts farmers, according to a new book edited by Steven A. Wolf:
"Farm advisors have an incentive to err on the side of caution, meaning
interpret pest treatment thresholds with an eye on minimizing exposure to
blame. As one consultant expressed, 'It is easier to prove you should have
sprayed than you did not need to spray.' Farmers, Extension, dealers and
independent crop consultants expressed that there are incentives to apply
inputs when the data informing such a decision are inconclusive or open to
interpretation. Managing a crop to maximize a farmer's net income is far
more risky for a consultant than is managing for maximum yield and highest
quality. Recommendation of an additional fertilizer or pesticide
application is preferred by consultants to risking crop yield and/or
quality loss. This form of bias stems from consultant's interest in
insuring their reputation, their most important asset."(Privatization of
Information and Agricultural Industrialization. S.A. Wolf, ed. CRC Press
LLC, Boca Raton, FL, page 177.)
Affordable "errors and omissions" insurance is not available to protect
crop consultants and farmers from the consequences of faulty advice, hence
the risk averse strategy. Many IPM and BMP techniques to minimize inputs
carry a small but very real risk of failure. If a crop consultant knows
that 1 out of 100 recommendations for a specific input reduction strategy
will be wrong due to this inherent error, it makes sense to err on the side
of extra inputs whenever the decision is not clear cut.
Comprehensive and affordable insurance for crop consultants, covering all
possible failed recommendations, is not likely to be available in the near
future. The "single peril" approach pioneered by ACIC is a good stop-gap
measure for consultants. For example, the policy in development for corn
rootworm (see III. above) will reduce the impact on farmers and
consultants of a failed recommendation not to treat for corn rootworm
larvae.
Crop consultants: Is there a recommendation you make frequently that might
be made less risky by a low-cost insurance policy? If so, or for more
information, contact Tom Green, IPM Works, representing ACIC at 2322 Keyes
Ave., Madison, WI 53711. 608-255-9443, 608-255-9469 (fax),
<tagreen@compuserve.com> (e-mail).
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V. ACIC Meeting Schedule
ACIC representatives will be attending the following events. If you would
like to arrange a meeting to coincide with any of these dates, please
contact Megan Terebus of ACIC at 843-740-1325, 843-740-1331 (fax) or
<Megan.Terebus@agconserv.com> (e-mail).
Oct. 18-21 Joint American Society of Agronomy, Soil Science Society of
America and Crop Science Society of America Annual Meeting, Baltimore, MD.
Nov. 8-12, 1998 Joint Entomological Society of America and American
Phytopathological Society Annual Meeting, Las Vegas NV.
Jan. 10-14, 1999 American Farm Bureau Federation Annual Conference,
Albuquerque, NM
Jan. 18-20, 1998 Wisconsin Fertilizer, Aglime and Pest Management
Meeting, Middleton, WI
Jan. 20-21, 1999 Maine Potato Conference, Presque Isle, ME.
Jan. 20-24, 1999 National Alliance of Independent Crop Consultants
Annual Meeting, Nashville, TN.
Jan. 31 - Feb. 4,1999 National Association of Conservation Districts
Annual Meeting, San Diego, CA.
Feb. 6-8, 1999 United Fresh Fruit and Vegetable Association Convention and
Exposition, San Diego, CA.
Feb. 8-10, 1999 New York State Vegetable Growers Association Annual
Meeting, Syracuse, NY.
Feb. 18-20, 1999 Commodity Classic, Albuquerque, NM
Mar. 28-31, 1999 North Central Branch Entomological Society of
America Annual Meeting, Des Moines, IA.
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VI. About ACIC
ACIC is a private, non-profit organization working to develop new tools to
make conservation objectives affordable and attractive to the agricultural
community. Initiatives of the center include risk-reducing insurance
policies for conservation-enhancing management practices, tax incentives
for wetlands preservation and mitigation, and innovative "trusts" and
"savings accounts" in support of wetland and grazing land conservation.
ACIC is actively seeking additional opportunities for IPM and BMP insurance
policies. Please contact ACIC for further details.
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Thomas A. Green, Ph.D.
IPM Works
2322 Keyes Ave.
Madison, WI 53711
608 255-9443
608 255-9469 (fax)
tagreen@compuserve.com
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