cq perspectives nov 2007

8/4/2019 CQ Perspectives Nov 2007

1/4C r o p Q u e s t P e r s p e c t i v e s

OFFICIAL PUBLICATION OF CROP QUEST AGRONOMIC SERVICES, INC

Volume 17 Issue 6 November 200

Continued on Page 2

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2007

Ina year

marked

by extremes

in the weather

patterns of the

geographic regions

served by Crop Questagronomists, there seemed

to be at least one constant:

commodity prices were good. In

many cases, however, the higher pric-

es producers locked in merely softened

the blow from damaging freezes, oods,

drought and a devastating tornado. It was the

most variable weather year I can remember, says

Jason Reichart who works in Crop Quests northeast

Kansas and Missouri territory.

Prices were good, but farmers had higher expenses,

Reichart explains, pointing out that his clients had to

spend more on fungicides, for example, to protect their

crops from the diseases that built up with excess mois-

ture. They were spraying for wheat disease and the

yields just didnt pan out, he goes on to say; and

the margins suffered as a result. Crop Quests

John Heimerman, who also consults with farmers in

east central Kansas, agrees, saying the constant moisture

brought disease pressure to his clients farms, and the

farmers also lost a lot of wheat because of the late Easter

freeze. High prices didnt help the wheat farmers in my

territory, he concludes. He notes that some producers

had to plant corn elds three times due to excess rain, and

that lateness was responsible for corn yields that were

below average.

In terms of farm economics it could have been worse.

According to John Reh, who manages Crop Quests Pratt

Division, farmers complained about the yields in east

central Kansas. But markets have been in their favor,

he says, implying that higher prices helped mitigate

some losses.

For farmers raising crops in and around Greensburg,

Kan., and the surrounding counties, things couldnt

have been worse. Not only did the tornado of May

4 completely destroy the town of Greensburg, but it

also damaged almost 400 center pivots within this

large territory affecting 50,000 acres of irrigated

crops.

Wheat producers in western Kansas, however,

enjoyed a banner year. The Topeka Capital Journal

reported in late summer that farmers in western

Kansas harvested 172 million bushels this year

compared to 77 million in 2006. We had the best wheatcrop since 2005 and that was a bumper year, exclaims

John Marquardt, a Crop Quest Agronomist working with

growers in western Kansas.

In the Texas panhandle, Crop Quests Doug Moyer

describes the areas corn harvest as excellent, and claims

that it was better than most of his farmers had anticipated.

After dealing with drought for several years, we had

an above average year, notes Jason Henry, Crop Quest

Agronomist, about the harvest just completed in his Du-

mas, Texas territory that got a boost from mild summer

temperatures and six inches of rain in mid-summer.

John Reh

John Heimerm

John Marqua

Jason Reichart


2/4C r o p Q u e s t P e r s p e c t i v e s w w w . c r o p q u e s t . c o

2007: Year of Extremes ... Continued from Page 1

Crop Quest con-

sultants in Colorado

and western Kansas

also report that their clients

werent complaining either.

Josh Sauer, Crop Quest agrono-

mist in the Front Range Division,

says theres a lot of corn still standing in

Colorado, and he expects the harvest to be

considerably better than last year. Moisture has

not been a problem. In fact it wasnt an issue at

all, according to Sauer who says the good snow pack

from last winter is one of the reasons. Farmers also had

access to free water as authorities released excess accu-

mulation from the reservoirs to farmers at no cost, he states.

Kyle Haggerty, Crop Quest agronomist also in the Front Range

Division of Colorado, points to the warm Au-

gust nights this year and less than normal hail

damage as additional reasons Colorado farmers

are having a good year. Corn yields will be

average, he claims, but barley is looking good

and sugar beet tonnage is good even though

beets prefer cooler nights to control sugar build up.

When the Rains Came

Although 2006 was ofcially the driest

in the recent eight-year stretch of drought, its

late autumn snow and precipitation was an

indicator that conditions might be changing.

The rain and snow that fell in January and

February established conditions that hinted

at the potential for bumper crops. All of

Crop Quests Western Kansas, Texas, and

Colorado consultants agree that the in-

creased moisture was the number one factor

in the overall improvement of the harvest.

We had a six-foot soil moisture prole

and no extended hot weather, Marquardt

says of the soil saturated from the surface to

a depth of six feet, and that contributed to the

strong production in western Kansas.

Wheat planted on fallow ground in Mar-

quardts territory yielded 60 to 100 bushels per

acre. For the most part the wheat crop, unlike

that in central and eastern Kansas, has been

disease free, with the exception of common

rust. Marquardt adds, This year we saw a 4-

lb. to 10-lb. difference in wheat test weight.

The longed-for precipitation of winter and

early spring, however, wasnt distributed even-

ly, and it didnt come without a price. Eastern and central Kansa

and parts of Oklahoma endured the residual effects of the 2006 d

spell, and then experienced a period of excessive rain followed b

an April freeze and ice storms in some areas.

We had more rain than we needed, says John Reh, and ther

were a lot of drowned-out elds. In Rehs

Great Bend region, rainfall was recorded at 41

inches through mid October, almost twice the

amount the area usually receives in a year.

On the other hand, all that rain accounted

for positive results in other farming opera-

tions. Reh indicates dryland corn was some of

the best his region has produced; adding that

dryland corn, soybean and milo yields had

increased by 15% to 20%. Irrigated corn yield,

though, was down 10% to 15%.

Moisture and Money

In Texas, farmers received more moisture than they expected,

wanted, as ooding occurred in many locations. But they started

the year off, according to Moyer, with moist subsoil that enticed

many of them to use more acres for corn and milo instead of cot

ton. They were hoping to cash in on the demand for corn from th

ethanol industry and they most likely did.

This year price and yield aligned almost perfectly, Moyer

says, explaining that its not often commodity prices are high wh

the yields are, too. Farmers were taking advantage of the situa-

tion.

Besides the ooding in and around the various areas within C

Quests realm of operations, moisture presented some additional

drawbacks. Moyer says he had to treat a lot of corn diseases wit

fungicides. He is quick to mention he had no trouble convincing

farmers to buy into the fungicide and pesticide programs, when

appeared the harvest could be very protable with minimal addi

tional expense. He found the same attitude in his clients regard

ing fertilizer increases. The farmers I deal with realize that whe

yields look good and prices are higher, thats precisely the time

bump up fertility rates, Moyer emphasizes. They understand t

more they invest, the better their return will be.

Several Crop Quest consultants, including John Marquardt,

mentioned the clients who enjoyed the most success were those

who complied with their agronomists recommendations. Thes

farm operators seemed to see the value of our services, Marqua

concludes. For them, he adds, cutting back on our programs

when things are going well just isnt an issue or a consideration

Things could be even better in 2008 for these farmers. Doug

Moyer wont be surprised if the next 12 months turns out to be

another banner year. The commodity prices for 2008 are shapin

up to be just as good as 2007.

Kyle Hagge

Jason Henry

Doug Moyer

Josh Sauer


3/4C r o p Q u e s t P e r s p e c t i v e s

The Ag Economy is experiencing a bull

market in grain commodities at levels never

before seen. For those of us in agriculturethat have yearned for prices like this, it is a

refreshing change, and a change that may not

come around again for a long time. The last

time we saw anything close to this was in the

early to mid 70s. But this time, the demand appears to be at levels

hat may help sustain this rally for awhile. This rally is also being

driven by a weak dollar. The value of U.S. currency is at historic

ows. This makes our grain reasonably cheap across the world.

What we also know all too well about markets is What goes up,

must come down, so we need to take advantage of these dynamic

markets while we can.

Higher commodity prices give producers more incentive to make

decisions that will produce higher yields, even if it means increas-

ng input costs. Input suppliers are aware of that as well, and it is

not uncommon to see price hikes in inputs due to higher commod-

ty prices. Some of that cost is justied, since costs are going up

or suppliers as well. It is quite obvious that the countrys demand

or foreign oil, and the weak dollar also lead to higher energy costs.

Higher energy costs lead to higher fertilizer costs, higher freight

costs, higher production costs, and so on.

Crop insurance rates have been based on some historical price

data. Higher commodity prices are going to force insurance

companies to adjust their equations for guring claim payouts, and

nsurance premiums. So, dont get caught thinking that you can

automatically double, or quadruple your prots, just because grain

prices have doubled, tripled, or quadrupled.

But, there is a gain to be made, and there is opportunity to greatly

improve the balance sheet, upgrade equipment, and put your opera-

tion in a position where it can weather tough times when they come

around. It is important that producers diversify their operation

by not planting just one crop. This fall, the wheat pit has done a

ne job of buying wheat acres. Last winter, we saw the corn pit

do the same thing. Soybeans couldnt get left behind, and this is

one reason we have watched bean prices advance. This trend of

buying acres will continue, and producers can take advantage of

this by planting more than one crop, and marketing that crop for aprot when the commodity pits give us this opportunity. It is also

important that producers continue to justify their

inputs. Even though it is easier to pay for a

mistake when the income is good, it is not

good business to waste money. I believe

it is true that more people get in trouble

nancially in good times than in

bad times.

Lets defy the odds and con-

tinue to make prudent decisions

that will not only maximize

production, but also maximize

the bottom line. This is an ex-

citing time in agriculture, and

we can all be thankful at this

time of year for all the

blessings that we have

been granted. I want to

wish you all a Happy

Thanksgiving, and a

prosperous new

year as well.

By: Ron OHanPresident

Member, National Allia

of Independent Crop

Consultants, CPCC-I

Certied

This is a hot, political statement and I run the risk of offending some-

ne. But, until reasonable people start speaking up and demanding ac-

on, our Congress and government will continue to let this issue slide.

You will notice that I did not say anything about illegal immigrants

n the heading.) We are all aware there are many illegals within our

orders. Most are working hard at jobs and trying to make a living asmany of our own ancestors did when they entered this country legally.

Because of the failure of our government to correct this problem and

ur policies that have encouraged illegal immigration, this issue must

e addressed without sending the millions upon millions of immigrants

ack to their own countries - even if it means issuing work permits.

However, for the security of our own nation, we must restrict our

orders and know who is coming and going. Even as a nation that

welcomes immigrants, we have the right to know who is coming

board whether to work at a job or to seek citizenship.

Many farmers continuously seek help on their farms and ranches. If

werent for the immigrants willing to do the work, much of our farm

production would come to

a halt. It is not a matter of

wages, as these workers

are paid fair and competi-

tive wages along with other

benets such as housing.Many American citizens are offered the same, but they refuse to wo

the long hours and do the tasks that are part of agricultural work. It

is not a matter of the immigrants taking jobs away from our fellow

citizens.

I know there are many other issues when it comes to immigrant l

within the meat packing industry, landscaping business, house or m

cleaning business and the temporary migrant labor used for fruit an

vegetable picking and packing. But, if we do not speak up and let o

voices be heard, we will all be in a labor crisis much worse than the

current situation.

IMMIGRANTS NEEDEDIN AGRICULTURE

Adjusting To HigherCommodity Prices

By: Dwight KoopsRegional Vice President

Ulysses, Kan.


4/4

Mission StatementCrop Quest is an employee-owned company dedicated to providing the highest quality agricultural services for each customer. The quest of our network

professionals is to practice integrity and innovation to ensure our services are economically and environmentally sound.

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Employee-Owned & Customer DrivenCrop Quest Agronomic Services, Inc.

Main Ofce: Phone 620.225.2233

Fax 620.225.3199

Internet: www.cropquest.com

[email protected]

Crop Quest Board of Directors President: Ron OHanlon

Director: Jim Gleason

Director: Dwight Koops

Director: Cort Minor

Director: Chris McInteer

Director: Rob Benyshek

HEALTHY CORN IS BEST SHIELD AGAINST FUNWith corn harvest ending and the start of u season beginning,

John Hechts goal is to stay healthy. If I am not feeling well and

there is the possibility that a room is harboring harmful bacteria,

fungi and viruses, I have to ask myself, am I healthy enough to

be here? says Hecht, Crop Quests Special Projects Managerworking in the companys New Mexico territory. Otherwise, he

reasons, if Im not as healthy as I should be, Im more vulnerable

to getting sick from the germs that are present. Hecht relates this

theory to keeping corn healthy since fungi in corn elds operate in

much the same manner.

This same logic is applied to corn elds when talking about aa -

toxins and vomitoxins (naturally occurring mycotoxins)

caused by various fungi that are produced by molds

such as aspergillus favus which is present in corn

when subjected to stressful conditions. Toxins

are a constant issue because the soil naturally

contains bacteria and molds, he explains,

adding that fusarium ear rot comes fromthe mold fusarium monoliformeand can

proliferate in dry years. There is no

real treatment, says Hecht who also

points out that he and his farm clients

have worked with various fungicide applications to no real avail.

Instead, Hecht counsels growers to minimize the opportunity

toxins have to take hold of a crop and inict serious plant and

economic damage by keeping their corn as healthy as possible.

Aatoxins and vomitoxins present in corn can be health threats

to humans, livestock and pets consuming products made from the

affected corn. These toxins are detected in kernels of corn when

brought to market by inspection services and can subject the

whole shipment to rejection.Fungus becomes a real problem after the green silk stage,

claims Hecht, especially if the husk cant protect the ear. The

struggle is on-going since fungi is always present. Stressful condi-

tions during the growing season may increase aatoxins, while

brown silk stage is when vomitoxins may affect the plant.

He further warns, Insects often clear the path for fungi to

enter and infect the ear of the corn; if the weather is cool and w

when silking occurs, everything youve done to ward off fungucan go down the drain, especially when it comes to vomitoxin.

As an agronomist, Hecht customizes various strategies for co

growers to implement in order to minimize the effect of vomito

and aatoxins on a corn crop.

He works with corn growers to reduce moisture and fertilize

stress. Placing pivot nozzles lower into the crop, he points ou

keeps the water off the ears and can possibly reduce infection

potential and in some cases can reduce vomitoxin.

Another strategy, already producing positive results in some

gions, is to shorten the growing season. Hecht believes this mea

has strong potential, and he has been consulting with a number

high altitude farms in New Mexico and Colorado who are utiliz

this method. The idea is to reduce the dry-down time for harvthereby reducing the time the fungi and insects have to infect t

ears and damage the corn, he says.

The tradeoff with doing this is lower yield potential, but giv

the right seasonal conditions, Hecht says, this may be an acc

able risk.

Another concern that producers and crop specialist have is w

the sampling methods used to determine if toxins are present in

the grain loads. When you gure the percent of corn that is be

checked out of a 1,000-bushel load, it is really not a true repre-

sentation of what is in the truck, Hecht explains. Its the best

sampling method out there, but the potential ramications of t

results of those tests are high.

The bottom line is to be aware of conditions that exist that mcause toxins to be present in your corn crop, Hecht concludes

and have a Plan B in place in case the situation arises.

Veteran Crop Consultant Stresses...

John Hecht

cq perspectives nov 2007

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