cow country news january 2013

Issue Highlights 2013 KCA Convention Program InsideCensus Gives Farmers a Voice in Their Future - pg. 14 Prepare Now for More and Better Pastures in 2013- pg. 24 Dealing with Calving Problems - pg. 52

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Cow Country NewsCattlemens Association January 2013January 2013

2 Cow Country News, January 2013, A publication of the Kentucky Cattlemens Association

Come See Us At The Kentucky State Cattlemen ConventionJanuary 10-11, 2013

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Cow Country News, January 2013, A publication of the Kentucky Cattlemens Association 3

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TABLE OF CONTENTSTABLE OF CONTENTS

Farmers doing business with farmers.

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SHARING OUR SUCCESS2013 KCA CONVENTION PROGRAM INSIDE!

COLUMNISTS7 Mike Bach, Opportunity of a Lifetime8 James Comer, KCA Convention to Offer an Educational & Entertaining Lineup10 Dave Maples, Convention Kicks Off New Year12 Baxter Black, The Osamaconomy 23 Melissa Hart, How Do You Feel About GMOs?24 Garry Lacefield, Prepare NOW for More and Better Pastures in 201374 Roy Burris, The Moving Finger Writes...

FEATURE STORIES22 More Than $5.5 million in Agricultural Development Funds Awarded29 PERC Announces the Propane Farm Incentive Program 30 New Research in the Diagnosis and Treatment of Neonatal Calf Diarrhea32 Successful People Never Quit Learning34 EPA Retains Dust Standard35 UK Wheat Science Groups Winter Meeting Coming in January36 Just Because You Have a Genetic Test Doesnt Mean You Can Throw Away

Your Tape Measure38 Sources of E. coli Are Not Always What They Seem39 Dr. Lowell Catlett to Provide Keynote Address at NCBAs Cattlemens College40 Making a Difference43 Stopping Flies Before They Mature44 UK College of Agriculture Inducts Inaugural Hall of Distinguished Alumni46 Shopping Smart48 Environmental Compliance for Kentucky Dairies50 Kentucky 2012 Farm Cash Receipts on Track to Break $5 Billion52 Dealing with Calving Problems

14 National News15 State News16-21 County News 26-28 Economic & Policy Update42 Kentucky Junior Cattlemens Association56-57 Kentucky Beef Council58 Th e CPH Report60 Kentucky Beef Network 62 Membership65 News Releases71 Market Report72 Calendar of Events 73 Classifi ed Section: - Classified ads - Advertisers Index


Central Kentucky Angus Association49th Annual Winter Sale

The Showcase Event of Central Kentucky Angus AssociationSATURDAY, JANUARY 26th, 2013 1:00 PM EST

CENTRAL KENTUCKY ANGUS SALES PAVILION DANVILLE, KENTUCKY 4 Miles northeast of Danville on State Route 34, then Chenault Bridge Road then Fork Church Road. GPS address: 2286 Fork Church Road, Lancaster, KY40444

Selling 104 Head + 20 Embryos + 150 Straws of Semen10 Show Heifer Prospects

If purchased by Juniors, all are eligible for the CKAA premium incentives.6 Bred Heifers

Powerful pedigrees. Due to calve in the spring

52 Cows / 25 CalvesFoundation Division of the Winter Sale!

11 Bulls3 spring & 7 2011 yearlings &1 herd bull

20 EmbryosLimestone Pure Pride T152 x Hoover Dam & Saugahatchee

GAR Objective L166 x Consensus & PredestinedWhitestone Kem W066 x SAV Pioneer

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Sale Sponsor: Central KY Angus Assn. President: Tom McGinnis, Shelbyville, KY9LFH3UHVLGHQW-RH0\HUV+DUURGDEXUJ.zV^[email protected] Identify

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Grandpa Tommy was reminisc-ing, Its a shame everybody couldnt go through the Great Depression.

I know what he meant. I think. He didnt mean it like Its a shame every-body hadnt been in a concentration camp or had polio. He was remarking that most of us Baby Boomers and younger are unable to appreciate how technology has pampered us. There was no safety net back then. Grandpa Tommy spent the Dirty 30s in the depths of the Dust Bowl in Syracuse, Kansas. Then the first half of the 40s he was on a Navy vessel in the Pacific.

He passed away without seeing our OsamaConomy. The hard times that todays generations are suffering under, began on 9/11/2001. We sank to the bottom immediately. Unemployment in 2002 was 7.5%. We pulled ourselves out and by 2007 unemployment had fallen to 4.5%. Then we over-reached and crashed again in 2008, where we have wallowed for four years with 8-10% unemployment. But this whole series of events in the last 11 years began on 9/11/01.

During this OsamaConomy, a large percent of our population has had to tighten our belts, however a smaller 10% has suffered mightily. But, in Grandpa Tommys defense, just a very tiny percent of those of us caught in the vise of OsamaConomy have gone hungry or have no roof over their head. Present-day technology has allowed the majority of the unemployed access to computers, cell phones, vehicles, televisions, emergency health care and school for their kids.

The safety net that is helping

these victims includes family, friends, churches, private giving and govern-ment programs financed by those still working and paying taxes. This safety net has prevented any mass migration of the unemployed seeking work. If there had been a mass migration, North Dakota and Wyoming would have doubled in population! The ten percent unemployed have been able to stay in familiar surroundings and are able to get temporary assistance to ride it out.

The Great Depression had 25% unemployment at its peak and lasted 9 10 years. Only the outbreak of World War II brought an end to it.

It is the prayer of all of us, that our foundering leaders will get their collective heads out of the mud, step out of the way and let America go back to work. It took us 5 years to recover after 9/11. In 2007 the federal govern-ment collected a record-high annual tax revenue from the private sector. That money came from people working and paying taxes, from Bill Gates to the legal immigrant mowing his lawn.

We all breathed a sigh of relief when our soldiers finally sent Osama Bin Laden to hell. There seems to be a lot of blame thrown around about who should bear the burden of our toxic economy. I dont have any doubt. It was him. Osama was this generations Hitler, Ho Chi Minh, Yamamoto and Small Pox.

In 2005 I went to New Orleans after Katrina to muck out houses. There were two kind of people that showed up; those who came to help and those who came to blame. In this OsamaConomy weve been barraged with ads and debates by those who come to blame. My head is ringing. But I know we will get out of this mess. Not because I have faith in the government, but because I have faith in those who get up every day and come to work, like Grandpa Tommy did, just doin his part.

Happy New Year and God bless you.

COMMENTARY

Baxter Black

-----------------On the Edge On the Edge

of Common Senseof Common Sense

The Osamaconomy

Extended-Release Injectable Parasiticide5% Sterile SolutionNADA 141-327, Approved by FDA for subcutaneous injectionFor the Treatment and Control of Internal and External Parasites of Cattle on Pasture with Persistent EffectivenessCAUTION: Federal law restricts this drug to use by or on the order of a licensed veterinarian.

INDICATIONS FOR USELONGRANGE, when administered at the recommended dose volume of 1 mL per 110 lb (50 kg) body weight, is effective in the treatment and control of 20 species and stages of internal and external parasites of cattle:

DOSAGE AND ADMINISTRATIONLONGRANGE (eprinomectin) should be given only by subcutaneous injection in front of the shoulder at the recommended dosage level of 1 mg eprinomectin per kg body weight (1 mL per 110 lb body weight).

WARNINGS AND PRECAUTIONS

Withdrawal Periods and Residue WarningsAnimals intended for human consumption must not be slaughtered within 48 days of the last treatment.This drug product is not approved for use in female dairy cattle 20 months of age or older, including dry dairy cows. Use in these cattle may cause drug residues in milk and/or in calves born to these cows.A withdrawal period has not been established for pre-ruminating calves. Do not use in calves to be processed for veal.

Animal Safety Warnings and PrecautionsThe product is likely to cause tissue damage at the site of injection, including possible granulomas and necrosis. These reactions have disappeared without treatment. Local tissue reaction may result in trim loss of edible tissue at slaughter.Observe cattle for injection site reactions. If injection site reactions are suspected, consult your veterinarian. This product is not for intravenous or intramuscular use. Protect product from light. LONGRANGE (eprinomectin) has been developed specifically for use in cattle only. This product should not be used in other animal species.When to Treat Cattle with GrubsLONGRANGE effectively controls all stages of cattle grubs. However, proper timing of treatment is important. For the most effective results, cattle should be treated as soon as possible after the end of the heel fly (warble fly) season.

Environmental HazardsNot for use in cattle managed in feedlots or under intensive rotational grazing because the environmental impact has not been evaluated for these scenarios.

Other Warnings: Underdosing and/or subtherapeutic concentrations of extended-release anthelmintic products may encourage the development of parasite resistance. It is recommended that parasite resistance be monitored following the use of any anthelmintic with the use of a fecal egg count reduction test program.

TARGET ANIMAL SAFETYClinical studies have demonstrated the wide margin of safety of LONGRANGE (eprinomectin). Overdosing at 3 to 5 times the recommended dose resulted in a statistically significant reduction in average weight gain when compared to the group tested at label dose. Treatment-related lesions observed in most cattle administered the product included swelling, hyperemia, or necrosis in the subcutaneous tissue of the skin. The administration of LONGRANGE at 3 times the recommended therapeutic dose had no adverse reproductive effects on beef cows at all stages of breeding or pregnancy or on their calves.Not for use in bulls, as reproductive safety testing has not been conducted in males intended for breeding or actively breeding. Not for use in calves less than 3 months of age because safety testing has not been conducted in calves less than 3 months of age.

STORAGEStore at 77 F (25 C) with excursions between 59 and 86 F (15 and 30 C). Protect from light.Made in Canada.Manufactured for Merial Limited, Duluth, GA, USA.The Cattle Head Logo is a registered trademark, and LONGRANGE is a trademark, of Merial.2012 Merial. All rights reserved.1050-2889-02, Rev. 05/2012

Gastrointestinal Roundworms LungwormsCooperia oncophora Adults and L4 Dictyocaulus viviparus AdultsCooperia punctata Adults and L4Cooperia surnabada Adults and L4 GrubsHaemonchus placei Adults Hypoderma bovisOesophagostomum radiatum AdultsOstertagia lyrata Adults MitesOstertagia ostertagi Adults, L4, and inhibited L4

Sarcoptes scabiei var. bovis

Trichostrongylus axei Adults and L4Trichostrongylus colubriformis Adults

Parasites Durations of Persistent EffectivenessGastrointestinal RoundwormsCooperia oncophora 100 daysCooperia punctata 100 daysHaemonchus placei 120 daysOesophagostomum radiatum 120 daysOstertagia lyrata 120 daysOstertagia ostertagi 120 daysTrichostrongylus axei 100 daysLungwormsDictyocaulus viviparus 150 days


Introducing new LONGRANGE with 100 to 150 days of parasite control in a single dose.1

A pasture full of thicker, slicker cattle is a beautiful sight. Get the look with LONGRANGE the fi rst extended-release injection that gives you 100 to 150 days of parasite control in a single dose.2

Break the parasite life cycle and see the performance benefi ts all season.3,4 Ask your veterinarian for prescription LONGRANGE.

Available in 500 mL, 250 mL and 50 mL bottles. Administer subcutaneously at 1 mL/110 lbs.

Only LONGRANGE has THERAPHASE Technology.2

1 Dependent upon parasite species, as referenced in FOI summary and LONGRANGE product label. 2 LONGRANGE product label. 3 Morley FH, Donald AD. Farm management and systems of helminth control. Vet Parasitol. 1980;6:105-134.4 Brunsdon RV. Principles of helminth control. Vet Parasitol. 1980;6:185-215.

The CATTLE HEAD LOGO is a registered trademark, and LONGRANGE and THERAPHASE are trademarks, of Merial Limited. All other marks are the property of their respective owners. 2012 Merial Limited, Duluth, GA. All rights reserved. RUMIELR1213-F (09/12)

Pharmacokinetic studies of LONGRANGE in cattle indicate that effective plasma levels remain for an extended period of time (at least 100 days).2

*Plasma concentrations between 0.5 and 1.0 ng/mL would represent the minimal drug level required for optimal nematocidal activity.

0 25 50 75 100 150125

0.40.5

1.0

4.0

40.0

Therapeutic Concentration 0.5 ng/mL*

Therapeutic Concentration 1.0 ng/mL*

TIME POST-TREATMENT (DAYS)

PL

AS

MA

CO

NC

EN

TR

AT

ION

(n

g/m

L)

IMPORTANT SAFETY INFORMATION: Do not treat within 48 days of slaughter. Not for use in female dairy cattle 20 months of age or older, including dry dairy cows, or in veal calves. Post-injection site damage (e.g., granulomas, necrosis) can occur. These reactions have disappeared without treatment.

Y O U R C A T T L E will look s o good T H E N E I G H B O R S W I L L S T A R E.

New

For more information, visit theLONGRANGElook.com

WITH SEASON-LONG CONTROL,


NATIONAL NEWS

Census Gives Farmers a Voice in Their FutureKentucky farm operators along with farm operators across America are about to par-ticipate in the nations largest, most detailed statistical portrait of U.S. agriculture--the 2012 Census of Agriculture. The census will provide a comprehensive picture of agricul-ture at the county, state and national levels. Americas farmers have the opportunity to make their voices heard and help shape the future of agriculture for years to come. The Kentucky Field Office of USDAs National Agricultural Statistics Service (NASS) in Louisville will coordinate agricultural census activi-ties for the Commonwealth.

Many changes have occurred throughout Kentucky agriculture in the five years since the last Census of Agriculture was taken, says Leland Brown, Director of NASS Kentucky Field Office. The need for reliable statistics about Kentuckys farmers has never been greater. Conducting the agricultural census is the only way to get information to measure how successful many of the state initiatives and marketing assistance programs have been. The success

of these new programs and how fast and how much they have grown will be shown by what producers report on the 2012 Census of Agriculture.

According to Brown, the Agricultural Census shows a geo-graphic picture of American and Kentucky agriculture: the changing crop and livestock patterns in agri-culture, economic conditions and operating costs of farm operators, and the sources of marketing and income. The Census of Agriculture provides information that is not available anywhere else information that benefits agricultural producers and their communities.

Another important piece of infor-mation compiled and published from the 2012 Census of Agriculture will be the count of farms by different categories: size, type, operator char-acteristics, and value of sales. This count is made for each county in Kentucky. Many of the extension programs administered in Kentucky receive funds for these projects based on the census farm counts by county.

NASS will mail out Census forms in late December, to collect data for the 2012 calendar year. Completed

forms are due by February 4, 2013. Producers can fill out the Census online via a secure website, www.agcensus.usda.gov, or return their form by mail. Federal law requires all agricultural producers to participate in the Census and requires NASS to keep all individual information

Agriculture census data serve as a foundation for agricultural statistics. They are widely used by farm orga-nizations, legislators, and those who provide goods and services to farmers and ranchers.

The census report form is detailed, but all information on indi-vidual farm operations is kept confi-dential by law (Title 7, U.S. Code). Statistical results are aggregated and published only in geographical sum-maries to prevent identification of individual farms.

A farm, for census purposes, is any place from which at least $1,000 worth of agricultural products were produced and sold or could have been sold during the census year. Because a key strength of the cen-sus is providing detailed facts about small farms, every response counts--whether from a large or very small

operation. Completing the 2012 Census of

Agriculture report form may be the best few minutes Kentucky farm-ers can invest in the future of the Commonwealths agriculture. By responding completely and accurate-ly, Kentucky farmers can make the 2012 Census of Agriculture an effec-tive tool to help chart the future of the Commonwealths top industry.

Were committed to making this Census the best count ever. It s about the future of agriculture and rural communities in Kentucky, Brown said. Regardless of how large or small their operation is or what kinds of products they pro-duce, Kentucky farmers will help themselves and their communities by filling out the Census of Agriculture and returning it promptly, he added.

We want farmers to know: the Census of Agriculture is their voice, their future and their responsibility.

For more information about the 2012 Census of Agriculture, please contact the NASS Kentucky Field Office at (800) 928-5277 or visit www.agcensus.usda.gov online.

Statement from Agriculture Secretary Tom Vilsack on 2012 Farm Income ForecastWASHINGTON, NOV. 27, 2012

Agriculture Secretary Tom Vilsack made the following statement today about the 2012 farm income forecast from USDAs Economic Research Service:

Todays forecast is heartening. It confirms that American farmers and ranchers remained impres-sively resilient in 2012, even with tough odds due to one of the worst droughts in more than a generation. Thanks to its ability to remain com-

petitive through thick and thin, U.S. agriculture is stronger today than at any time in our nations history, sup-porting and creating good-paying American jobs for millions. While down slightly from the August forecast, todays estimates for net farm income are the second-highest since the 1970s, while total farm household income is expected to rise. At the same time, the positive trend of falling debt ratios continue. The forecast suggests that strong farm income should remain a pos-

itive factor in carrying farmers and ranchers into the 2013 growing season. But as one season comes to an end and another lies on the hori-zon, we must continue to stand with Americas farming families and rural communities, providing help and assistance to those who need it. This year, the farm safety net showed its mettle and merit, helping to deliv-er peace of mind to thousands of farmers and ranchers dealing with losses caused by natural disasters. It s a reminder that Congress must

do the same, and pass a comprehen-sive, multi-year Food, Farm and Jobs Bill that provides greater certainty for farmers and ranchers in the sea-son ahead. Providing the tools and certainty they need is the least we can do for those who grow our food, fiber, feed and fuel, even through the most challenging of times.

The 2012 farm income forecast is available at www.ers.usda.gov/Briefing/FarmIncome/.


STATE NEWS

Farm Service Conservation Loans Available LEXINGTON, KY

USDA Farm Service Agency (FSA) State Executive Director John W. McCauley, announced that funds are now avail-able for Guaranteed Conservation Loans. Conservation loans allow farm-ers and ranchers to implement conser-vation practices on their land that will help protect natural resources.

Guaranteed Conservation Loans are a useful alternative to help opera-

tors implement any Natural Resources Conservation Service (NRCS) approved conservation practice includ-ing, but not limited to, waste manage-ment systems, conservation structures or water conservation measures, said McCauley.

Unlike other FSA guaranteed loan programs, Conservation Loans are not limited to family size farms. Operators who may not normally qualify for an FSA guaranteed farm operating or ownership loan could be eligible for a

Guaranteed Conservation Loan. According to McCauley, the

Guaranteed Conservation Loan limit is $1,302,000 and interest rates and terms will vary. The maximum guaran-tee FSA can issue is 75 percent.

A streamlined application process is available for applicants with a strong financial position. The streamlined process reduces paperwork require-ments and eliminates the requirement to provide a cash flow statement and supplementary documentation.

Interested applicants who do not already have a conservation plan approved by NRCS should work with their local NRCS staff to develop a conservation plan. As with other guar-antees, lenders can reduce risk, increase liquidity and offer lower rates by sell-ing the guaranteed portion in the sec-ondary market.

For questions regarding Guaranteed Conservation Loans, please contact your lender or your local FSA Office.

1875,7,21)25(;3(&7$17027+(567KHUHVD&5


BY BOBBY SHILTS

On Thursday, October 11, 2012 the Breckinridge Cattlemens Association started our tour at Bandy Acres Farm. Ginger and Sherry Wilson were very gracious hosts, serv-ing coffee, donuts, sausage, biscuits and gravy, it was sure Quite the Spread.

The Wilsons had pens of bulls and heifers and fall calving cows/calves. This farming operation of Angus pro-duction has been for here for seventy plus years. The Wilsons also donated a registered bred heifer for the Dustin Worthington Award in 2012.

Next across Highway 60 to the Bell

Above: Participants on the Breckinridge County Seedstock Tour

Breckinridge County Seedstock Tour

COUNTY NEWS

Barren Cattlemens Association members; Dr. Sherman Ballou, Don Wilson, Charles Embry, David Parsley, and Dr. Jerry Ralston (not pictured) recently completed the Ky. Masters Stocker and Backgrounding program which was presented through the UK Extension offi ces in Barren County, Warren County and Allen County. Pictured above from left to right are: Gary Tilghman, representing the Barren County Agriculture Extension Service, Dr. Sherman Ballou, Don Wilson, Charles Embry, David Parsley, and James Comer, Kentucky Commissioner of Agriculture.

Debbie Turner of Barren County Farm Service Agency presented a program on Agricultural Loans during the Barren Cattlemens meeting which was held at the Barren County High School Trojan Trail on Thursday evening, October 18th. Pictured from left to right is Debbie Turner and Robert Siddens, President

of the Barren County Cattlemens Association.

Barren County NewsThe Barren County Cattlemens meeting was held Thursday evening, November 29th, at the Barren County High School Trojan Academy. During the meeting, Dr. Roy Burris (left) of UK College of Agriculture, presented a program on

Winter Feeding of Beef Cattle. Also, James Comer (center), Kentucky Commissioner of Agriculture, spoke to the group on what is being done by the Ky. Department of Agriculture for the Beef Industry. During the meeting a delicious dinner was served. The meal was sponsored by SUPERIOR FENCE SYSTEMS INC. and B&B FENCING CO. Pictured above from left to right is Dr. Roy Burris, James Comer, and Robert Siddens, President of the Barren County Cattlemens Association.

The Barren County Cattlemens meeting was held Thursday evening, October 18th, at the Barren County High School Trojan Academy. During the meeting, Dr. John Johns of Burkmann Feeds Co. (right), presented a

program on supplementing low quality feeds. During the meeting a delicious dinner was served. The meal was sponsored by BURKMANN FEEDS OF GLASGOW. Pictured above from left to right is Eugene Myatt and Dr. John Johns of Burkmann Feeds Co.

The Breckinridge County Cattlemens Association held their annual meeting on Tuesday, December 11. Over 115 were in attendance for a great beef dinner, program and lots of door prizes worth over $1200. 2013 Offi cers were selected including: (left to right) Debbie Hobbs, Bobby Shilts, Darla Wethington, J.J. Tucker.

Contd on page 17


COUNTY NEWS

Annual Performance - Tested Angus and Hereford Bull Sale

Saturday March 9, 2013 Mayslick, KY

CED: 9 BW: 0.5 WW: 58 YW: 107 Milk: 33 MB: 0.64

RE: 0.75 $W: 37.82 $B: 87.27

CED: 13 BW: -0.1 WW: 59 YW: 104 Milk: 29 MB: 0.29

RE: 0.27 $W: 41.01 $B: 47.44

Boyd Signature 1014Boyd Signature 1014

6077 Helena Rd. Mays Lick, KY 41055Charlie Boyd II, Cell (606) 584-5194

Home (606) 763-6418Charlie Boyd Sr. (606) 563-4412Email: [email protected]

www.boydbeef.com

Call today to request a

bull sale catalog!

CED: 3 BW: 3.2 WW: 47 YW: 94 Milk: 30 MB: 0.37 RE: 0.34

$W: 26.72 $B: 66.56

Invest in a program that has produced numerous AI stud sires and has been in business for over 100 years!

Boyd Resume 9008Boyd Resume 9008Boyd Cowboy 908Boyd Cowboy 908

Boyd Worldwide 9050 ETBoyd Worldwide 9050 ET

Boyd Forword 6025Boyd Forword 6025

CE: 4.0 BW: 1.9 WW: 49 YW: 73 MM: 24 MB: 0.15

REA: 0.21

CED: 11 BW: 0.2 WW: 60 YW: 119 Milk: 22 MB: 0.51

RE: 0.66 $W: 45.78 $B: 72.42

Boyd Masterpiece 0220Boyd Masterpiece 0220

CE: 4.0 BW: 1.2 WW: 52 YW: 71 MM: 34 MB: 0.34

REA: 0.48

Angus Farm, Floyd and son Bobby Belk showing some great show bulls and heifers, as well as some of the great cows in their herd. They showed us some of the ways to keep and feed their hay, feed barn, hair barn and had a great working facilities.

Then our group traveled to Hidden Valley in the Popular River area to J. J. Tuckers Registered Angus and Polled Hereford herds. Showing some great bulls of both breeds then onto the wag-ons toured pastures and viewed some

great fall calving cows and calves. For dry weather pastures, I will not attempt to grade these cows, but I suspect they would be right at the very top of rat-ings.

We left Hidden Valley and traveled to the Breckinridge Extension office for lunch, special thanks to the ladies that are members who prepared lunch for us. After lunch, we traveled to the B&A Angus Farm owners who are Paul Beauchamp and Ona Alexander. We saw some great young bulls that had

been used on the Eden Shale Farm. We lucked out and saw another great group of cows and calves. Paul shared with the group how Dr. Les Anderson was working with them on the same sex semen with some of their cows. After viewing a lot of cattle, Mr. Beauchamp showed the group some crossbreds they are working on, and Wow what Bulls!

Paul then guided us to a very high hill on their farm overlooking a very beautiful area, close to the heaven maybe. Leaving the B&A Angus Farm

we traveled across the county to Brad Chambliss Horned Hereford Farm. Home of some very nice Hereford bulls just right for service with some great cows with fall calves. Brad has a beautiful farm and with a great working facilities.

I would like to thank all of the seed stock producers on our second tour. This is a cattlemens dream, herd bulls, replacement heifers for your herd.


COUNTY NEWS

BY KEENAN R. BISHOP

The Franklin County Cattlemen decided to explore North & South Dakota for their Educational Tour this year. Between trying to accommodate everyones schedule, the tobacco harvest and before winter cattle feeding began we finally ended up going in late October. This turned out to be an interesting time to head north for several reasons.

The ranch and extension folks I talked to up there assured me that the weather was usually just a little colder up there than in Kentucky that time of year but it was drier so the threat of snow wasnt an issue. They also informed me that it was the opening of pheasant hunting season, which we found out is a major celebration up there.

Twelve of us left out for Fargo packed for a broad range of condi-tions and ready for another cattlemens adventure. We arrived that evening and met Carl Dahlen, North Dakota Beef Cattle Specialist and his wife Roberta, a swine researcher at NDSU, who treated us to a visit to an intercollegiate rodeo on campus. Several local schools were competing and it was a lot of fun with our ringside seats. The new part for us was that women competed in the roping and tying events, and the tying involved goats. The next morning we met at The Shack for breakfast and discovered the Dakotas love affair with warm sticky buns and why. They were big and tasted excellent.

Carl gave us an overview of the state, explaining that the Missouri river not only physically divides the state but in many other ways too. The eastern half is mostly farming while the west-ern half considers themselves westerners and focuses on ranching. The state only has about 600,000 residents but 65,000 have recently arrived with the oil boom. Boom towns have increased tenfold in only a few months and growing pains are evident. About 2/3rds of the agri-cultural income comes from cattle. The

prairie around Fargo was the bottom of a glacial lake so the soil was very deep and fertile where we started and was highly valued for crops. Grain prices and weather patterns are causing corn production to creep west and north several hundred miles though into what was formerly only pasture or range.

We spent the rest of the morning touring the NDSU research facilities and getting vans stuck in the mud & muck. Apparently our arrival had signaled the end of the drought there, much to their relief. NDSU has a 200 head herd of shorthorn, Simmental and angus cross crows for their research which includes feeding studies. They calve in January which is brutal there so they have sheltered facilities for the newborns. One interesting tidbit

learned was that calves with frostbitten ears tend to do poor throughout life due to hidden foot problems from that same exposure.

We left our gracious hosts, the Dahlens, who had given up a Sunday morning for us and started our leisure-ly drive west. We passed through the hometown of writer Louis LAmour and the worlds largest buffalo and then enjoyed miles of flat, treeless prairie, few travelers and even fewer farmsteads.

Mandan, nestled between the Missouri River and the Badlands, was to be our home for the night. The next morning we met up with Kelly Schaff of Schaff Angus Valley, a well know name in the Angus business. The ranch was homesteaded by Kellys great grandfather in 1902 and has had

a production sale for 109 consecutive years, a record in the business. That sale lasts for 12 hours and attracts over 1,700 people from around the world. The ranch includes almost 8,000 acres with an annual rainfall of 13 of which half is snow. The problem is that the snow melts off before the ground thaws so much of that leaves the area. They get only one cutting of alfalfa a year. Their excellent soils and native grasses produce cows known for their maternal abilities and performance. They sell about 500 bulls a year and the herd average is an unbelievable 880lbs at the 205 days of age. All of this is accomplished with little to no supple-

mental feeding. With new SAV caps in exchange for our local Kentucky gifts of appreciation and some fresh pictures of pheasant on the run we said our good-byes and double backed north.

On the other side of Bismarck along the river is a feedlot that we had heard of and were very interested in finding out more about. Missouri River Feeders is a 10,000 head feedlot that finishes cattle on silage along with distillers grains and a few other commodities. Thats nothing new to us but what we were interested in was their export operation. Alex Hays was kind enough to show us around and explain their USDA inspected quarantine herds that get shipped to Eastern Europe/Western Asia. It seems that Kazahkastan, while trying to survive the breakup of the for-

Dakotas, You Betcha!

Above: The Cattlemens Educational Tour members gather around the entrance to Schaff Angus Valley Ranch outside Mandan North Dakota for a group picture. L-R is Kelly Schaff, Keenan Bishop, Lisa Perkins, Roger Perkins, Gail Peyton, Sherman Peyton, Mona Redding, Kerry Redding, Scotty Brewer, Lona Brewer, James Herndon, Susan Spar-row and Roger Sparrow.

Right: Frank Moore, Director of Operations at Glacial Lakes Energy, gave the group a hard hat tour of one of their ethanol plants. Here, being cattlemen, they were greatly interested in the modifi ed distillers grains produced there as a by-product.


COUNTY NEWSmer U.S.S.R., consumed most of their breeding cattle in order to survive. Now they are importing groups of registered Hereford and Angus cows to start new herds there thanks to a subsidy offered by their government. MRFs sends sev-eral thousand head, 185-195 at a time on a plane out of Fargo for a 22 hour flight to their new home which is very similar to the Dakotas.

Leaving the feedlot we passed a smaller lot of PBR rodeo bulls which fled in fear when we stopped to look,

go figure. Our destination that night was west into the badlands of the Roosevelt National Park. We managed to get rooms in the town of Dickinson on the edge of the oil boom (I was warned early on that rooms would be at a premium due to the boom and pheasant hunting). This town seemed overwhelmed with drilling and pipe-line construction trucks. That night you could see the flames where the wells were burning off methane gases from fracking operations. We were told

that a common hourly wage in the oil fields was $40 (the feedlot mentioned that they couldnt keep help due to being siphoned off for the oil work), a truck driver straight out of high school could make six figures easily there. We saw the badlands at dusk and realized that though beautiful, they were aptly named. Erosion there is measured in inches per year.

The next morning broke rainy and cool again, and we loaded up early for our long drive into South Dakota

and the Black Hills before heading east through the Badlands. We soon realized how easy it was going to be to rack up our 1,679 total miles as the country unfolded before us with miles of asphalt ahead and little to break up the monotony or the wind. We passed through Belle Fourche, the towns claim to fame is that it is currently the geographic center of the United states. And we were approaching the middle

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COUNTY NEWS

of our trip too. We had temporarily outrun the rain but not the chill winds. We stopped for lunch in Sturgis then hit the road again in order to visit with rancher Alan Bishop.

Mr. Bishops ranch of almost 5,000 acres was in sight of Mt. Rushmore. He took us out to a point on a rise to view the mountain and explain his operation near what he said was a windbreak, a lone tree about 300 yards away! At least the winds had calmed from the 60-70 mph sustained breeze they had the week before. He raises alfalfa and grazes brome grass with about 18 of rainfall on high selenium soils. He only has two water holes in the 1,000 acre field we drove through to view his herd. He said his greatest challenge is trying to rotate pastures when half of the year the grasses are dormant.

This area in the foot of the Black Hills is what he calls the banana belt where they get a thaw for a few weeks in January. Another interesting feature is that the tree line is slowly creeping down from the mountains and onto the prairie. He overwinters with a Body Condition Score of 4-5 on about 15 acres per pair. We went back to his house to warm up and were greeted with fresh coffee and homemade cook-ies thanks to his mom. We found out he had a niece at UK and invited him to visit and wed return the hospitality.

We left just in time to see Mt Rushmore at dusk where we joined a few other hardy souls who ventured out to see the rock. We hung out until after dark in the rain to see the monument which they lite up briefly every evening. It was worth it although most of us thought it looked smaller than expected but still magnificent.

We spent the night in Custer in a 1950s motel, The Rocket, a neat old motel that we settled into just as the snowflakes were starting. After a hardy breakfast with the locals we planned to visit Crazy Horse before a mad dash across the Badlands for our next stop late in the afternoon. As we climbed the Black Hills and entered the park

at above 5,000 we found 4-6 of snow. The memorial, though not yet com-plete, was beautiful as the snow blan-keted the evergreens.

We left before we were able to adequately tour the Native American Museum but we had a long way to go and a short time to get there. We made a pit stop at Walls Drug just to say wed been there (and bought our required souvenirs). We also made the unfortu-nate stop for lunch at a family diner at one of the bigger towns on the way. We stopped when they were closing after feeding a bunch of hunters with hangovers and they werent too happy to see us but fed us anyway.

We finally arrived at the Jorgensen Ranch, a family operation that was set-tled in 1909 by their great grandfather. The ranch has evolved to encompass cattle, farming and hunting. They crop almost 20,000 acres of diversified grains and forage which lends itself to the habitat for hunting pheasant. They sell about 3,000 bulls a year. Many go to cooperators and are brought back as proven 2 and 3 year olds for final sale. About 20 potloads of bulls go to the south east each year.

After a ranch tour in their bus, Cody Jorgensen then took us to their brand new hunting lodge. The lodge was immense and beautiful and will not only provide for hunting parties but retreats and meet-ings as well. They currently host about 600 hunters a season and harvest about 3,500 pheasants (which were first introduced by their grandfather). The lodge will let them expand and they expect the market to be there.

As darkness descended we started north for the night. Being hunting season, and being in one of the least populated areas of the country our accommodations required our group to split up into two different motels. Our rooms had signs stating not to clean the pheasants in the tub, dont store them

in the fridge and keep the dogs off the beds. We obliged. Supper that night was at a local pool hall and steakhouse where we once again followed the hunters and had another surly waitress but she warmed up to our lively group as the night wore on.

Morning greeted us with another light blanket of snow and a wind-chill of -9F. We jumped into our warm vans and headed out for Daybreak Ranch. We met Jim Faulstich and his wife & son in their shop to hear about his ranching philosophy. Hes witnessed the loss of 20,000 cows in his four county area. The cows along with sheep, hogs and their native prairie grasses have been replaced by row crops of corn, beans and sunflowers (which he feels is a net drain on the soil). He feels that this loss of diversity affects the land as well as the community. As a result, his natural resources are his highest priority for managing his 8,000 acres.

Mr. Faulstich starting using wildlife as his barometer to measure whether his ranching practices were effective or not. As the deer, grouse, pheasant and coy-ote increased, he realized he had found an equilibrium but also realized he had created a liability so he incorporated hunting to keep his abundant wildlife in check. He rotationally grazes his 350 red Angus and south Devon cross cows

Alan Bishop explains his ranching operation outside the Black Hills and within sight of Mount Rushmore (L-R Alan Bishop, Scotty Brewer, Roger Perkins, Lona Brewer, Mona Redding and Sherman Peyton).

The group has lunch with the Bieber family at the 10/45 Caf in tiny Leola SD. We look forward to eating at the little local establishments while visiting with our host families. This caf also happens to serve Bieber beef.

Contd from page 19


COUNTY NEWS

using polywire and fence-weans his calves with the same hot wire system which he claims is less traumatic and results in healthier happier calves. Hes razing his cattle with no supplemental feed in a very harsh environment. His low elevation usually gets a first freeze in August and lasts until mid-May with temperature swings from a -90F wind-chill to 110F in the summer.

While in the area we stopped in to see David Fremarks cow/calf and feed-lot operation. He feeds around 6,000 head using distillers grains from ethanol production nearby but is finding that silage is cheaper now. With the increas-ing regulations for confined feeding operations he decided to hire a com-pany to monitor his operation to help keep him in compliance. The manure is spread on a portion of their 15,000 acres of cropland which now includes soybeans, something he said was not even grown there 20 years ago.

His cowherd totals almost 2,000 head but they are broken down into groups of 3-500 and grazed behind hot

wires. This area is feed with artisanal springs which he uses to his advantage. Not only does it flow freely from the ground but it comes out at around 80F. Of his 15-20 employees he still has cowboys to ride herd on horses but finds that he uses ATVs a lot more now.

Most every trip we try and visit a livestock auction just to see how they operate and gain a little insight into the market there. This year we stopped in on Hub City Livestock, the largest in South Dakota which also happens to be family owned and operated. Steve Hellwig gave us a tour of the facilities which can hold 8-9,000 head and typi-cally sells 6,000 on sale days. They also still sell about 3-400 sheep a week but this is half of what it was 20 years ago. They buy around 4,000 roll bales of hay a year since it usually takes producers several days to bring in a calf crop and they must be fed and watered until sale date. After a good lingering visit with some order buyers in the office we trad-ed KCA caps for Hub City Livestock

caps and headed to the Bieber Red Angus ranch.

Two generations of the Biebers met us at their family operation. The ranch was started by Ron and Lois but is evolving into the hands of his son Craig and his wife Peggy. Craig lamented that he loved ranching but as they grew he had become more of a manager of people and did less and less hands-on work. We got a tour of their 800 cow operation which sells about 350 bulls a year. The cows were grazing recently harvested corn fields and were in great condition. Peggy had made arrange-ments for lunch at the caf down the road which was appropriately named 10/45 due the road intersection. We had a long enjoyable meal of German based food in the company of an enjoy-able ranch family.

Our last scheduled stop for our seven day trip had another Kentucky connection. Frank Moore, Director of Operations at Glacial Lakes Energy Ethanol Plant, spent many years in state government here and was excited

to meet our group and finally talk to someone without an accent. We got a great behind the scenes tour of how an ethanol plant worked and they patiently answered all our questions about the whole process. The plant uses 84 mil-lion bushels of corn a year and produces 240 million gallons of ethanol, most of which is exported. A byproduct is 900,000 tons of distillers grain which is consumed locally or shipped out by rail. The plant itself is mostly a green operation with its only discharge being excess steam. It takes only three days to turn corn kernels into liquid fuel there.

With our educational stops done, we had a leisurely drive back to catch our fl ight out of Fargo. With a little time to spare we allowed a little shop-ping excursion since the other require-ment of eating well had already been met. While waiting for our connecting fl ight we discussed where our trip next year would take us. Th e only consensus was that it would not be north unless it was summertime!

John, Joanie, Lindsey & Lauren Grimes2594 State Route 73 Hillsboro, OH 45133(937) 764-1198 Johns Cell: (937) 763-6000Fax: (937) 764-1617 [email protected]

www.maplecrestfarms.com Ben Wheeler: (606) 301-1961 Scott Winkle: (937) 681-1550Go to www.MaplecrestFarms.com for video and sale catalog.

These bulls have been performance tested and will sell with a breeding soundness exam.The bulls are sired by Angus breed leaders Connealy Confidence 0100, GAR New Design5050, TC Total 410, Coleman Regis 904, B/R New Day 454 and Summitcrest Complete1P55. The Sim-Angus bulls are by Ebonys SS Grandmaster, STF Dominance T171 andSHS Navigator N2B. These are full sibs and flush mates to the young females featured inour fall female production sale.

If you are looking to make significant genetic improvements to your presentoperation, dont miss the opportunities presented March 11!

Selling 60 Angus & Sim-Angus Bulls10 2-year-olds 35 18-month-olds 15 Spring yearlings

Mon., March 11, 2013 At the farm Hillsboro, OH


FEATURE

FRANKFORT, KY. (DEC. 14, 2012)

The Kentucky Agricultural Development Board (KADB), chaired by Governor Steve Beshear, today approved $5,586,102 in 14 agricultural diversification projects across the Commonwealth during its December board meeting at the Capitol.

State and regional investments included:

$1,863,900 Statewide Dairy Marketing The Kentucky Dairy Development Council Inc. was approved for $1,863,900 in state funds to be disbursed over two years to continue educating and pro-moting Kentuckys dairy producers and the dairy industry as a whole, including the Market Incentive Leadership for Kentucky (MILK) program.

$1,580,947 Statewide Livestock Marketing Program

The Kentucky Beef Network was approved for $1,580,947 in state funds to be disbursed over two years to continue training beef cattlemen to produce and market a quality product at a reasonable and sustainable profit through new pro-grams such as Professional Cattlemen and Young Cattlemen/Farm Link, along with continuing programs like Marketing Communications, Master Cattleman and more.

$ 1,325,000 Horticultural Crop Production & Marketing The Kentucky Horticulture Council was approved for a total of $1,325,000 in state funds to be disbursed over two years to continue work in the expansion and profitability of horticulture crop pro-ducers through on-farm demonstrations,

consultations, development of marketing systems, market research and more.

$33,850 Chia Feasibility StudyKentucky Specialty Grains LLC was

approved for $33,850 in state funds to conduct a study on the market develop-ment and feasibility of processing chia for seed, oil, meal and flour.

The County Agricultural Investment Program (CAIP) is designed to provide farmers with incentives to allow them to improve and diversify their current production practices. CAIP covers a wide variety of agricultural enter-prises in its 11 investment areas. Three CAIPs were approved by the board total-ing $430,842 for Johnson, Madison and Ohio counties.

In addition to these new approvals, an additional $308,237 was approved to sup-plement existing CAIPs in the following

counties: Fayette, Franklin and Lewis.The Deceased Farm Animal

Removal Program serves as a measure to facilitate the coordination of environmen-tally sound and cost-effective disposal of deceased livestock for Kentucky produc-ers. Two County Deceased Farm Animal Removal Programs were approved for Clark and Hart counties totaling $15,000.

The Shared-use Equipment Program is designed to benefit a high number of producers who cannot justi-fy ownership expenses associated with certain equipment by helping them access technology necessary to improve their operations in an economical manner. Two Shared-use Equipment Programs were approved by the board in the amount of $28,326 for Clay and Franklin counties.

More than $5.5 million in Agricultural Development Funds Awarded

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FEATURE

With the impact of the drought, corn and soy-beans werent the only crops that suffered. Im sure youve noticed the high priced apple crop, the nonexistent peach crop and of course there were no cherries to speak of this year, but apparently thats not what mattersits all about Genetically Modified Organism (GMO) labeling.

I read on a social media site about a recent boycott of those food produc-ing companies who did not support GMO labeling. While I expected it to be a list of companies that produce calorie laden, delectable treats like Little Debbies Snacks and Post cere-als, I was quite surprised to see the list included companies that produced organic products like Kashi cereals and Silk, the milk alternative and Tropicana Organic orange juice and Ben and Jerrys ice cream. Of course all these products are owned by food giants like Coca-Cola, Dean Foods, General Mills, Kellogg, Con Agra and Unileverthe very same compa-nies that produce foods that contain GMOs. Are you totally confused now? I am.

This group of individuals was discussing their hatred for these com-panies and what GMOs have done to negatively affect our population. The discussion then turned to how to grow organic food without cross pol-lination with GMO crops. Some were saying cross pollination is rampant while others were saying You cant grow anything outside, it all has to be

in a greenhouse! Then the discussion tipped the

unbelievable scale when someone said they dont buy fruit anymore because the fruit you eat now is partially a living insect and when you eat them your cells get confused which equals cancer. Seriously? Did someone just make that up to be

funny? Wow. I shudder to think what these

folks eat on a day to day basis. They are narrowing their food pool down so far that pretty soon youll see them out munching on tree barkwellas long as it was protected from cross pollination.

Some of these folks are seriously confused and uneducated but if you think Im going to turn the corner and say we all need to keep telling our story and educating the consumer, you are dead wrong. Dont get me wrong, I think farmers still need to reach out to consumers to fill the gap with truth and knowledge but I also believe that the common consum-er is either looking at ways to eat healthy, regardless of GMOs or they are filling themselves with foods they enjoy, regardless of nutritional con-tent. I contend they dont care about GMOs, bST, LFTB or anything else. Consumers want convenience, afford-able and quick. Look at the continual boom of fast food, the drive thrus and the hot and ready marketthats what the people want.

Maybe we need to communicate a different message; efficiency. Maybe we should celebrate the diversity, the efficiency and the advancement of farming technologies. With the nation devoid of fiscal responsibility do you really think Joe Consumer is worried about non-GMO wheat flour being used in his pizza crust and non-GMO barley in his favorite beer as he watches the NFL playoffs?

Maybe. Maybe not.

How Do You Feel About GMOs?

MelissaHart

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FORAGES

Prepare NOW for More and Better Pastures in 2013

Dr. Garry Lacefield

-----------------University of KentuckyUniversity of Kentucky

Forage SpecialistForage Specialist

Pasture/hay fields across Kentucky have been under many stresses over the past few years including multiple droughts, flood-ing, extreme temperatures, ice storms, overgrazed, etc. As a result, many have thinned, gotten weedy and much less productive than their potential. Now is the time to plan for more and better pasture/hay in 2013. I hope your crystal ball is clearer than mine and you are able to predict the weath-er for 2013. I simply predict we will have weather but beyond that will remain optimistic this is going to be a good forage year.

Most of us do not have time and other resources to do all that is needed or we desire, so inventory and setting priorities is the place to start.

Inventory: What are the condi-tions of your fields including desirable grass stands, production potential, weeds, legumes, etc. Are your pastures subdivided so you control the grazing or if too large the cattle control and will make the decisions? Do you have some field capable of growing more/better in July-August than cool season plants such as tall fescue, orchardgrass, white clover and finally can you make improvements in your hay/baleage quantity-quality and storage-feed-ing program. You already have the answers to much of the above so now simply set your highest priorities for selected improvements in 2013.

Fertility: The first and most important factor is to know the pH-P-K levels. This is extremely important on any field you plan to

ren-ovate with legumes or reseed this spring.

Weed Control: For those fields that have sufficient grass but have many broadleaf weeds, you may want to spray to control before renovating with clovers.

Renovation: In Kentucky, pasture renovation simply means re-establish clovers in grass pasture/hay fields. This represents a great need this year as many of our fields have lost most or all clovers. Many years of research and farmer experience has shown where clovers such as red clover is renovated into tall fescue yield and quality is improved. The legume fix needed nitrogen and improves summer production.

New Seedings: I expect an increase in alfalfa seedings this spring. Cash hay prices, availability of Roundup Ready varieties and the need for summer grazing are just three of the reasons I expect more seedings.

Choose Varieties Wisely: Your decision on what varieties to use for your renovation or new seeding are critical. For more information on Forage Variety Tests, see our U.K. Forage Variety trial report on the

Forage Website or stop by your County Extension Office.

Rotational Grazing: Interest in improved pasture utilization through rotational grazing has shown increases across Kentucky and I fully expect that trend to continue. During last years drought producers who had set up rotational grazing programs were able to use spring and early summer pasture more efficiently and over a larger period of time before they run short of pasture.

Summer Pasture: We go through a summer slump in Kentucky each year as our cool season grasses show less production during July-August. In drought years this period of time is longer and more severe. Using plants capable of growing more during sum-mer such as red clover, alfalfa, lespede-za, warm season grasses such as, east-ern gamagrass, switchgrass, bluestems,

pearl millet,

sudex, sudan-grass, and bermu-dagrass can improve summer production. Producers who have

some percentage of their total pasture (15-

25%) plants in this cate-gory can usually have grazing

during the summer slump period.

Hay/baleage: Stored feed is expensive compared to pasture. For most Kentucky producers we still need to have some stored feed for those days during winter that we simply cannot graze. The number of days can certainly be reduced with planned grazing-forage programs. Areas to consider for improving would certainly include extending grazing programs, harvesting hay/baleage early for high-est quality and reducing losses during haymaking, storing and feeding.

Im sure each of you can think of other areas to consider as we plan to improve our pasture/hay program for 2013. I wish you the very best for 2013.

Date to Remember

33rd Kentucky Alfalfa Conference, February 21, Fayette Co. Ext. Offi ce, Lexington


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The Agricultural Economics Department publ i shes t he Economic and Policy Update towards the end of each month. Each issue features articles written by extension personnel within the department and other experts across the country. Topics will vary greatly but regularly include marketing, management, policy, natural resources, and rural development issues. If you would like to recieve this newsletter by email, please contact Kenny Burdine at [email protected].

You can also view current and past issues online at

http://www.ca.uky.edu/agecon/index.

php?p=209

Co-editors: Kenny Burdine, Alison Davis, and Greg Halich

ECONOMIC & POLICY UPDATE

BY GREG HALICH & CLINT HARDY

There is currently a large volume of late model, high quality farm machinery available for small and mid-sized grain farms. The main reasons for this include the need for greater machinery capacity on large grain farms, record net farm incomes over the past few years that has encouraged the purchase of new equipment, and recent tax rules which have allowed producers to expense the total purchase of new equipment in one year. Most of this used machinery still has many useful years left and purchasers may find it worthwhile to invest in upgrades of modern technology features. This article focuses on investment analysis of two potential technology upgrades: 1) automatic row unit shutoff clutches on planters, and 2) automatic section controllers for sprayer booms.

Both of these technologies effectively shut off portions of these machines when they are not need-ed. These shutoffs will significantly reduce the amount of area would be overlapped without this technology. This has two advantages. First, it saves on the product being applied (seed and herbicide). Second, it increases yield on the areas that would be overlapped.

Planter Analysis: We evaluated a 12-23 row planter

with a total retrofit cost of $20,000 for the row unit shutoff clutches. It was assumed that the upgraded machine would be kept for 8 years and that 20% of the upgraded value would remain when sold. Table 1 details three scenarios for yield overlap decrease, and increase in corn/soybean yield in the previously overlapped areas for the retrofitted planter.

Sprayer Analysis:

We evaluated a self-propelled sprayer with 60 foot boom and a total retrofit cost of $6,000 for the automatic section controllers and basic GPS receiv-er. It was also assumed that it would be kept for 8 years and that 20% of the upgraded value would remain when sold. Table 2 details three scenarios for yield overlap decrease, and increase in corn/soybean yield in the previously overlapped areas for the retrofit-ted sprayer.

Table 3 details other assumptions relevant to the analy-sis. Increased yield is valued by multiply-ing the area of previous overlap by the expected yield increase, and then multiply-ing this by the modified price per bushel for corn and soybeans. The modified price takes the expect-ed base price per bushel and sub-tracts additional costs incurred due to the additional yield (additional P and K removal, harvesting costs, trucking costs, drying costs). These

increased costs amounted to $.69/bu for corn, and $1.10/bu for soybeans.

Planter Results:The analysis was first conduct-

ed for a 1,000 acre farm in a 50-50 rotation of corn and soybeans. Seed

Investment Analysis of Auto Shutoff Precision-Agri Technology



BY RUSH MIDKIFF

There are two big tax code changes for business owners this year. First, in 2011 I.R.C. Section 179 (accelerated depre-ciation) was a maximum of either $500,000 or taxable income from all trades or businesses (including wages). The investment limit for beginning the phase-out of the deduc-tion was $2,000,000. As of the writing of this article, the 2012 I.R.C.

Section 179 deduction is a maximum of either $139,000 or the taxable income from all trades or businesses (including wages). The investment limit for beginning the phase-out of the deduction in 2012 is $560,000.

The second big change is in bonus depreciation. In 2011, tax-payers could take a 100 percent deduction on all qualified brand new equipment and building purchases with a Modified Accelerated Cost Recovery System (MACRS) life of 20 years or less. In 2012, the deduction

is 50 percent for qualified new equip-ment and building purchases with a MACRS life of 20 years or less.

There have been very few other changes to the tax code for the 2012 tax year. Maximum capital gains are still 15%. The income rates have remained unchanged although the brackets have been adjusted for inflation. However, in 2013 the Bush tax cuts will be expiring and the impli-cations of the Health Care Act will go into effect. It is expectation that there will be many changes to our tax

code.Many farmers carried a record

large crop into the 2012 tax year. To compound the problem, a lot of farmers are likely to receive signif-icant crop insurance payments for their 2012 crop losses. The result is likely to be a large amount of taxable income in many cases. Specialists are starting their fall visits this month and it is advised that all KFBM coop-erators take a hard look at their tax position to avoid any surprises come tax time.

Tax Update and Implications for 2012

savings ranged from $2,000 to $3,400 per year in the three scenar-ios. Increased net profit from the additional yield ranged from $2,200 to $7,200 per year. Total combined increased profit due to seed sav-ings and yield increase ranged from $4,200 to $10,600 per year. This resulted in a payback period of 5 years using the most conservative assumptions (low scenario) and 2 years using the most optimistic assumptions (high scenario). The returns on investment were 15%, 32%, and 52% for the three scenari-os. Thus this upgrade appears to be a very good investment even when using the most conservative assump-tions for this sized farm.

Sprayer Results: The same 1,000 acre farm was

used as the base-size with the spray-er analysis. Herbicide savings ranged

from $2,000 to $4,000 per year in the three scenarios. Increased net profit from the addi-tional yield ranged from $2,900 to $11,600 per year. Total combined increased profit due to seed sav-ings and yield increase ranged from $4,900 to $15,600 per year. This resulted in a payback period of 1.2 years using the most conservative assumptions (scenario 1) and .4 years using the most optimistic assump-tions (scenario 2). The returns on investment were 81%, 159%, and 260% for the three scenarios. These types of paybacks and expected returns are rarely seen in investment analysis; even the most conserva-tive assumptions yielded incredible returns.

Farm Size Results: Farm size has an important effect

on the investment decision. As farm

size decreases, the benefits of the potential upgrades will decrease. Thus it is important to evaluate a range of farm sizes and see how they impact the investments. Table 6 shows the planter analysis when the farm size ranges from 1,250 down to 250 acres. Again, it is assumed these farms employ a 50-50 rotation of corn and soybeans. At 500 acres, it appears the invest-ment would still be good with the mid-dle and most opti-mistic assumptions. With the most pessimistic assump-tions, the farm size would need to be 750 acres for the investment to be

favorable.Table 7 shows the sprayer

analysis when the farm sizes range from 1,000 down to 125 acres. At 125 acres, it appears the investment would still be good with the middle and most optimistic assumptions. With the most pessimistic assumptions, the farm size would need to be 250 acres for the investment to be favorable. Thus the potential for sprayer retrofits seems great-er than planter retrofits on the smallest grain farms.

In summary, it appears that small and mid-sized grain farms have a great opportunity to retrofit high-quality used planters and spray-ers with these two precision agricul-tural technologies at a fraction of the cost of new equipment.


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BY STEVE ISAACS

In the past two years College of Ag faculty have been involved in four Farm Business Transition work-shops that have been attended by more than six hundred participants ranging in age from their twenties through their eighties. With esti-mates that up to seventy percent of farm land will change hands by 2025, the average age of Kentucky farm operators being fifty-seven, and uncertainty around federal inheritance tax policy, the need and demand for farm transition planning is strong.

While the threat of inheritance taxes or the uncertainty of poten-tial changes in tax law are often the driving force for developing a transition plan, it is family disputes, rather than tax obligations, that are more likely to threaten the future of the farm business. A recent informal

poll of farm management profession-als with several hundred years of collective experience failed to dis-cover a single farm business whose failure could be attributed to tax obligations. In contrast, each of the professionals knew of several cases of farms broken up because of unre-solved family conflicts.

Disputes over the distribution of assets among siblings can be averted by the development and execution of a will, but the business is more than just a collection of assets. Successful transition and continuation of the business should also include provisions to transfer management, labor, and marketing responsibilities in a fair and orderly fashion. The transition should also accommodate the financial needs of all the families who depend on the sustained profitability of the farmboth the entering and the exiting

generations. The will is an important part of the transition, but is just a part of the total plan.

Few families can develop the plan without the assistance of pro-fessionals. Attorneys, accountants, lenders, financial planners, and farm management advisors are all resources that can, and should, be consulted in development of a transition plan. And clearly, all fam-ily members should be engaged in the transition process. We used to suggest that these conversations should take place around the kitch-en table. That was probably never a very good idea and heres why. It is NOT NEUTRAL territory. Much of the family history and a lot of the family emotion are gathered around that table.

We would suggest moving the conversation to a neutral site a bank boardroom, an Extension

office somewhere off the farm, away from distractions, including cell phones. Wed also suggest in some cases that the business should hire a facilitator to help assemble the team, set an agenda, direct the meeting, take notes, and help produce the plan. The facilitator may be the one to raise the difficult questions and seek compromise solutions. One farm financial man-agement advisor has observed that if you havent fired your facilitator about three times, theyre not doing their job.

According to the 2007 Ag Census there are over $44 billion dollars of agricultural assets in Kentucky. If seventy percent of those assets change hands by 2025, thats a five million dollar a day opportunityor problem if the tran-sition is not planned in advance of the deaths of the owners.

Its More Than a Will, Its a Way


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FEATURE

PERC Announces the Propane Farm Incentive Program WASHINGTON (DEC. 17, 2012) The Propane Education & Research Council (PERC) announces the release of the Propane Farm Incentive Program, a nationwide research and demonstration initiative in which farmers can receive more than $4,000 toward the purchase of new propane-fueled irrigation engines.

Farmers who participate in the pro-gram will receive a $400 incentive per liter of engine displacement, up to 10.3 liters or $4,120, toward the purchase of a new propane-fueled irrigation engine. Qualifying equipment must be new, original propane-fueled engines and equipment that have obtained the proper U.S. Environmental Protection Agency and/or California Air Resources Board Certification.

The program aims to support pro-pane-fueled agricultural equipment as it emerges out of the research and

development pipeline. Feedback and performance data from the programs participants will be used to inform future product development.

This program gets at the core of the significant investments PERC has made in the agri-cultural industry, said Mark Leitman, director of business development and marketing at PERC. By offering incentives to farmers in exchange for performance data, were establishing a mutually-beneficial relationship that will assist in developing new technology to support the industry.

Research has shown that propane-fu-eled stationary irrigation engines can help producers improve their bottom line in several ways. Propane-fueled irrigation

engines cost up to 14 percent less to pur-chase and operate than diesel irrigation engines, and propane reduces deposits on engine components and decreases overall maintenance costs. Additionally, new

generation propane-fu-eled engines produce fewer emissions than gasoline- and diesel-pow-ered systems.

By working with OEMs, PERC has helped commercialize new equipment and pro-pane-fueled irrigation

engines that are fuel-efficient and clean-er burning than traditional models.

While its clear that propane offers a multitude of benefits for farmers, were really seeking to improve and build upon our existing technology, Leitman said. With the feedback and performance data collected through the Propane Farm

Incentive Program, were able to better develop equipment to meet the needs of those who use it the most: farmers.

Currently, nearly 40 percent of farms in the U.S. use propane to run pumps and engines, heat buildings, and dry and process crops. As gasoline and diesel prices continue to rise in recent years, propane has remained an efficient and affordable fuel alternative on the farm. Nearly 90 percent of U.S. propane sup-plies are produced in the United States, giving farmers the security of using an abundant, domestic energy source.

Farmers can participate in the Propane Farm Incentive Program through equipment dealers nationwide or by submitting an easy online applica-tion http://agpropane.com/incentive/.

For more information about the Propane Farm Incentive Program or to see a list of eligible equipment, please visit www.agpropane.com.


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FEATURE

BY DR. MICHELLE ARNOLD, UNIVERSITY OF KENTUCKY RUMINANT EXTENSION VETERINARIAN

Diarrhea in neonatal calves is one of the leading causes of morbidity (sickness) and mortality (death) in North America and Europe and continues to be a major cause of economic loss to the beef cattle industry. There are five major infectious causes of diarrhea in calves less than 21 days of age: E. coli K99, Rotavirus, C oronavirus, Cryptosporidia, and Salmonella. Noninfectious factors such as insuffi-cient or poor quality colostrum, poor sanitation, stress, and cold weather can cause or contribute to neonatal calf diarrhea as well. Regardless of the

cause, diarrhea results in increased loss of electrolytes and water in the feces of calves and decreases milk intake. Ultimately, this process causes dehy-dration, metabolic acidosis (the blood is more acidic than it should be), electrolyte abnormalities including a deficiency of sodium, and a negative energy balance from the lost nutrients and lack of milk. Oral electrolyte solutions have typically been used to replace fluid losses, correct acid-base and electrolyte levels in the blood, and provide nutritional support with the added benefit of being relatively inexpensive and easy to administer. Recent research has elicited better methods to assess and treat a calf with diarrhea as well as better guidelines for choosing an oral electrolyte solu-

tion. Faster and more accurate diag-nostic tests have also been developed to uncover the underlying cause of the diarrhea. Rapid diagnosis is critical to develop the best treatment options and to prevent future outbreaks.

Accurate assessment of a calf with diarrhea is necessary to determine if oral fluid therapy is adequate or if intravenous (IV) fluids are indicated. The choice depends on the determi-nation of two important factors: 1) the severity of the dehydration and 2) the severity of the metabolic acidosis or low pH of the blood. Dehydration is relatively easy to monitor by exam-ination of the position of the eyeball and by skin elasticity or the skin tent test. The degree of recession of the eyeball in the orbit (how far the eye

is sunken in) can be estimated by gently pulling the lower eyelid down and measuring the distance between the eye and the socket. If the distance is greater than 0.2 inches, dehydration is considered to be more than 8% and IV fluids are needed. Likewise, if the skin is pinched on the side of the neck and rotated 90 degrees then released and the time for the skinfold to disappear is greater than 6 seconds, the calf is considered greater than 8% dehydrated and in need of intravenous fluids. Although these measurements are somewhat subjective and may occasionally be inaccurate, they are by far the most accurate clinical indica-tors of dehydration that can be easily measured in the field. Conversely, field methods to assess acid-base sta-

New Research in the Diagnosis and Treatment of Neonatal Calf Diarrhea


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FEATURE

tus are not as good because they are based on a depression or demeanor score to predict the level of acidosis. Calves often have other concurrent metabolic problems that cause depres-sion so these scores may be incorrect in complicated cases. Two parameters are important to assess: 1) the abil-ity to stand (strong, weak or wobbly, down or recumbent) and 2) the ability to suck (strong, weak or slow, or no suckle reflex). In general, a standing calf with a strong to moderate suckle reflex or that demonstrates a chewing action should be given oral fluids. Any calf with a very weak or absent suckle reflex should be given IV fluid therapy because, if oral fluids are given to a calf with ileus (no gut motility), the fluid is not absorbed but instead pools in the rumen resulting in bloat and/or rumen acidosis. ANY calf that is severely depressed and unable to stand requires intravenous fluids.

The question often arises whether to allow a calf treated with oral elec-

trolytes to continue nursing. Some experts used to recommend a rest the gut approach, suggesting that continued milk feeding worsens diar-rhea. However, research has shown that milk feeding does not prolong or worsen diarrhea, nor does it delay healing of the intestines. Calves should be maintained on their full milk diet (continue nursing) plus oral electrolytes when possible as long as they exhibit diarrhea. Damaged intestines need metabolic fuel to optimize repair and milk provides a readily available source of nutrition to facilitate that repair. In addition, milk is more energy dense than elec-trolytes so continued milk feeding minimizes weight loss associated with prolonged bouts of diarrhea. If calves are depressed and refuse to nurse, a hypertonic oral electrolyte product such as Calf-Lyte II HE or Enterolyte HE can be used but, if nursing is not resumed within 12 hours, blood glucose concentrations

will drop too low and the calves will get too weak to respond to oral treat-ment alone.

Calves with diarrhea, regardless of the cause, will usually have an over-growth of the E. coli bacteria in the small intestine that can be absorbed into the bloodstream and cause systemic signs of illness including fever, loss of appetite, and lethargy. Injectable antibiotics and injectable nonsteroidal anti-inflammatory agents (NSAIDs) such as Banamine are recommended in calves showing these signs. Work with your veterinarian to choose the products that will work best in your herd. Currently there is no research evidence to support the use of corticosteroids, motility mod-ifiers, immunostimulants, intestinal protectants or absorbants, or probi-otics for treatment of calf diarrhea.

Improved diagnostics are now available to ascertain the cause of neo-natal calf diarrhea. Th e UKVDL has recently developed a Calf Diarrhea

Multiplex PCR panel (cost of $50 plus a $10 accession fee) which tests for the major diarrhea pathogens in calves less than 21 days old including: E.coli K99, Rotavirus, Coronavirus, Salmonella spp., and Cryptosporidia from one fecal sample submitted early in the course of disease and before any treatmen

cow country news january 2013

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