ISU Extension
Agronomy- Extension
IA State Univ.
IA Dept. of Ag
IA DNR

Northwest Area Extension

December 2004

In this issue
Asian Soybean Rust Educational Opportunities
Starlink Settlement Card Arrives
Beef News
Livestock Revenue Insurance Workshops

Asian Soybean Rust Educational Opportunities
by Todd Vagts, ISU Extension Crop Field Specialist

Now that soybean rust has been found in the southern U.S., the risk that soybean rust may move into Iowa for the 2005 growing season has greatly increased.  Yet because of the timing, we have an excellent opportunity to educate ourselves on the biology, identification and control strategies of Asian Soybean Rust.  Be sure to put these educational opportunities on your calendar.

ISU Extension Crop Advantage Series
January 10 - Sheldon
January 12 - Carroll
January 21 - Spirit Lake
January 24 - Cherokee

For registration information, contact your local ISU Extension office or go to http://www.aep.iastate.edu/cas/

Private Pesticide Applicator Training Meetings:  Several PPAT meetings will be held in each county across northwest IA from December through March.  Soybean rust will be a major topic discussed during these training meetings.  Contact your local ISU Extension office for  meeting date and times.

Web sites are also a good source of information; here are a few good ones to look at:

ü      ISU Extension:  http://www.plantpath.iastate.edu/soybeanrust/ and  http://www.extension.iastate.edu/carroll/crops/soybean-rust.htm

ü      APHIS: http://www.aphis.usda.gov/lpa/issues/sbr/sbr.html

ü      American Phytopathology Society: http://www.apsnet.org/online/feature/rust/

ü      Plant Health Initiative: http://www.planthealth.info/rust/rust.htm

A few key points to keep in mind about Asian Soybean rust…

ü      Some models suggest the overwintering sites of soybean rust may be restricted to the gulf coasts of Florida and southern Texas, or in Mexico.

ü      The climate over much of Iowa will not always be favorable for widespread and severe soybean rust epidemics.

ü      Management of soybean rust will be dependent in the next few years on judicious use of fungicides. 

ü      Highly resistant soybean varieties will probably not be available for a number of years, however, there may be varieties available sooner that have tolerance or partial resistance to soybean rust. 

ü      To our knowledge, there have been no widespread and severe plant disease epidemics in their first year of detection after introduction into the U.S.

(Excerpted from Asian Soybean Rust Confirmation in Louisiana Raises Concern of Potential Impact of this Disease in Illinois, by Dean Malvick)

Starlink Settlement Card Arrives
by Tom Olsen, ISU Extension Farm and Ag Business Specialist - tolsen@iastate.edu

At last, a year and a half after farmers submitted the claim forms, the settlement has arrived.  The GMO trait “Starlink”, a BT addition to corn was released for production in 2000. Corn varieties with this trait were to be channeled to “non-food only” markets.  After “Starlink” turned up in some tacos in Texas, among other places, lawsuits followed.  The courts determined Aventis should pay not only for actual damages from contaminated corn, but also for the damage done to the entire corn market by the unintended presence of this corn in the system. All corn farmers with production in the year 2000 had the opportunity to claim damage from this civil suit.  $100 million was to be divided for this damage. It was estimated the return to a farmer would be about $1/acre.

Well, it turns out there was about 35% participation in this suit and the payout is closer to $3.00/acre. For NW Iowa, this is over $2.5 million. Rather than a check, the payout is in the form of a VISA debit card.  For those that get this card, a few suggestions are listed below:

·         An initial letter of explanation was received about 2 weeks before the card came. With it came an individual verification number to be used to activate the card.  If you misplaced that letter, it’s OK, when you get the card and call the activation number, you will be given the option to punch in the verification number (which is the first four digits of your zip code) OR the last four digits of your social security number.

·         As the directions indicate, this is a debit card that can be used at any point-of-sale that accepts a VISA credit card. Rather than trying to keep track of the remaining balance on the card as you use it, take the card to your local bank and do a cash advance for the entire amount and put it in your checking account. Then it’s done. The card is good for  one year.

·         You must claim the entire amount of this settlement as income in 2004. It cannot be deferred.  It is to be entered on your tax form where grain sales are reported. In a crop-share lease, the tenant will show the entire income and then show the portion given to the landlord under other expense.

·         The farm operator is responsible to account to any persons who may have had a legal interest in the 2000 corn crop. This is a part of the settlement language.

In an interview, during the Starlink cram sessions to assist in claim filing, I was asked when the checks would be coming. I recommended not buying Christmas presents assuming the claim would pay for them. Now a year later, I guess we can make those purchases. Merry Christmas.

Beef News
by Beth Doran, ISU Extension Beef Field Specialist

Feedlot Assistance - Feedyard owners that have 1000 or more head are at a crossroad.  Most have received a letter from the Iowa Department of Natural Resources inquiring about the future plans for their feedlot.  This is not an easy decision.  It not only affects the engineering design for animal waste management, but also impacts the financial condition of the operation.

Iowa State University Extension has Farm Financial Planning Associates that can provide assistance to help you determine the financial impact of your decision, such as building total containment, splitting the feed yard into two sites, or reducing the animal numbers below 1000 head.     

If you would like help (at no charge) in deciding what would be financially best for you, please feel free to contact an associate listed below:

Dan Brutsche
Coon Rapids, IA
712-684-5302
luckydb@pionet.net

David Entriken
Webster City, IA
515-832-2647
dfe@prairieinet.net

Wayne E. Johnson
Forest City, IA
641-581-2471
641-430-2470 (cell)
wjohnson@wctatel.net

Roger Stewart
Stanton, IA
712-829-2251
rogstew@netins.net

Wendell Williams
Milford, IA
712-338-4958
cwwilli@evertek.net

EQIP Funding - The Natural Resources Conservation Service has $6.5 million in EQIP funds available to specifically address issues faced by large confined animal feeding operations (CAFO's) that require a National Pollution Discharge Elimination System permit.  These funds will be used to provide 50 percent cost share for specific practices to control feedlot runoff.  Some of these practices include diversion, pond sealing or lining, roof runoff structure, sediment basin, waste water storage facility, waste storage lagoon and filter strip. 

Iowa producers may sign up for EQIP at local USDA Service Centers.  Sign-up is continuous, and applications are prioritized for funding at the local level.  Applications signed before December 18 will be considered for 2005 EQIP funding.  Interested producers are encouraged to contact their local USDA-NRCS office for additional information on ranking criteria and local cut-off dates.  Livestock producers who receive EQIP funding for animal waste manure systems must develop and implement a comprehensive nutrient management plan. 

 

Livestock Revenue Insurance Workshops
by David Stender, ISUE Swine Specialist

The Livestock Gross Margin (LGM) Insurance Policy provides protection against both swine prices and the price of feed computed from corn and soybean meal prices.   The margin is calculated as a return over feed.  The change is that this insurance is now available 12 times a year on the last business day of each month instead of just twice a year.

To collect on the insurance the price of feed has to increase and/or the price of hogs decrease.  The gross margin insurance would not be as beneficial if both the price of feed and hogs went up or if both feed and hog price goes down.  In those cases they would tend to cancel each other out. 

The best time to purchase this insurance is when the price of hogs is high, the price of feed is low and there is potential for swings in the market.   That is the situation we have this fall, historically high hog prices with huge supply numbers of swine.  The current market is based on demand, which could come and go rapidly.  Everybody knows the grain markets this fall are nearly half what they were just 6 months ago, that is not exactly a picture of stability. 

As Ron Hook mentioned in his Field and Feedlot article last month this might be a good time to consider using this risk management tool.  The next day to purchase LGM will be the last business day in December.  ISU Extension has scheduled workshops at County Extension offices in LeMars on Dec. 21 and in Sibley on Dec. 22 to explore livestock revenue insurance.  These over lunch workshops will begin at 11 am.  Check with your County Extension office if you are interested in attending.

There are many ways to manage risk, traditional options and hedging are great methods.  The uniqueness of LGM is that the producer does not have to decide on the mix of options to purchase, the strike price of the options, or the date of entry.  In addition, the LGM policy can be tailored to any size farm.

For more information, a good question and answer fact sheet can be found on the internet at:  http://www.rma.usda.gov/FTP/Policies/2005/lgm/pdf/05LGM_QA.pdf

Iowa State University’s Center for Agricultural and Rural Development has developed a tool to help producers calculate various risk options and the resulting estimated premium.  It can be found at the following web site:

http://www.card.iastate.edu/ag_risk_tools/lgm/INDEX.ASPX

I used the web site to calculate the premium required to lock in 85% of the gross margin from January through May.  Based on November 23 prices, the expected gross margin will average $106.71 per head.  To insure 85% of the gross margin it would cost about $1.11 per head.  For a little over a dollar per head, more than $90 per head gross margin could be insured.  Join us on December 21 or 22 to learn more about this insurance and the possibilities available. 

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