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In this issue
Crop Insurance Time
by Ron Hook, ISUE Farm Management Specialist
It is time to make crop
insurance purchase decisions again. Let’s take a quick look at the
insurance alternatives available. For yield insurance we have Multiple
Peril Crop Insurance (MPCI), which insures bushels up to 85% of actual
production history. The guaranteed price for MPCI in 2003 is $5.30 for
soybeans and $2.20 for corn. Prices for 2002 coverage were $4.92 for
soybeans and $2.00 for corn.
For revenue insurance
we have CRC (Crop Revenue Coverage) and RA (Revenue Assurance). RA has two
variations—RA basic and RA-HPO. RA basic only establishes a spring revenue
guarantee, while RA-HPO also has a fall revenue guarantee in the event
prices increase. Both CRC and RA-HPO establish a spring revenue guarantee
based on the February average of December futures for corn and November
futures for soybeans. Fall coverage for corn is based on the October
average of December futures for CRC and the November average of December
futures for RA-HPO. Fall coverage for soybeans is the October average of
November futures for both CRC and RA-HPO. CRC coverage ranges from 55% to
85% and RA coverage ranges from 65% to 85% of expected revenue.
In 2002 nearly ¾ of
corn acres were insured with revenue products (RA and CRC) while only 43% of
the soybean acres were insured with RA and CRC. Many producers choose MPCI
for soybeans because of the relatively high price guaranteed and revenue
coverage for corn because of the greater variability in yield and price.
Revenue insurance is attractive to those producers who like to take
advantage of forward pricing opportunities in the event of a weather rally.
To check out premiums
before you talk to your agent, you can do so at the following website:
http://www.farmdoc.uiuc.edu/cropins/index.html
COOL ?
by
Peter A Olson, ISUE Beef Field Specialist
COOL what?
Have you heard this word or latest acronym yet? Do you know what it means
or its implications toward the beef industry? COOL stands for Country Of
Origin Labeling. COOL was written into the 2002 farm bill and is voluntary
until October 1, 2004, when mandatory country of origin labeling rules take
effect.
The objective
of COOL would identify the country of origin where the meat was born, raised
and slaughtered. Does it sound simple? It doesn’t sound like too hard a
process to put a little sticker on a package of meat saying where it came
from. Until you recognize the number of live cattle that enter our borders
from the north and south.
The law
requires verifiable audit trails, meaning retailers and U.S. Department of
Agriculture officials must be able to trace beef from the supermarket meat
case back to the packer, the feedyard, the stocker and ultimately the
cow-calf producer. Labeling regulations do not apply to meat sold through
food service or processed, pre-cooked products sold at retail.
Some fear the
cost of implementing this law will be extremely large and U.S. cattleman
will foot the bill. Retailers will have the responsibility for accurately
labeling products under COOL regulations. They, however, will pass the
responsibility for
documen-tation back to their suppliers. Violations carry fines up to
$10,000.
To read more
about COOL and Frequently Asked Questions about COOL please go to:
http://www.ams.usda.gov/cool/
DAIRY TRANS-
Translate Financial Data into
Knowledge with a Simple Cost of Production Spreadsheet
by Chris Mondak, ISUE Dairy Field
Specialist
The ISU Dairy Extension
Team is assisting Iowa dairy producers cope with financial challenges by
simplifying the process of determining Cost of Production through the use of
a short, straight-forward spreadsheet program called Dairy Trans.
Completion of this spreadsheet will help producers understand the
financial performance of their dairies. This spreadsheet tool will provide
several useful financial measures:
-
Cash Income and Expenses – per cow, per
cwt, and goals per cow
-
Net Worth Statement – Cost basis and Fair
Market value basis
-
Cash Flow Statement- Summary and Cash flow
risk ration
-
Net Income Statement – Inventory
adjustments, Equity change, Labor return
-
Cost Return Analysis- per cow, per cwt,
per acre
-
Profit Performance- % rating,
goals/averages,
financial ratios, resource efficiency
One of the beauties of
this useful program is its ease of data gathering and input. Essentially,
the data required is the same information you compile to complete the
Schedule F Tax form listing Assets & Liabilities.
As Larry Tranel, ISU
Extension Dairy specialist in NE Iowa describes, “Dairy Trans
translates tax record data from Schedule F, combines it with a simple Net
Worth Statement, and generates a very detailed and useful profit performance
analysis. Cash basis records are adjusted for inventory changes to attain a
true income and cost picture. Labor and capital are fully accounted for to
better gain a handle on intensity of resource use regarding labor and
capital investments. A break-even cost is calculated.”
Some Iowa and Wisconsin
dairy producers have already used this program and have found it useful.
Dale and Dee Gaul in Peosta say “We analyze our dairy every year using
Dairy Trans and it’s an eye-opener having a detailed cost of
production generated to help us make some long term investment decisions.”
Dan Truttman of Wisconsin states, “We have since added cows thanks to the
accurate projections and reduced our
machinery inventory. Dairy Trans
really helped us move forward with changes
and decisions.”
Because the Dairy Team
knows how critical it is for individual producers to have this management
information, and because we want to build a database of cost of production
based on Iowa dairies so that lenders and consultants have an accurate
picture of what it takes to run a dairy in Iowa, Extension staff are
offering assistance with the Dairy Trans spreadsheet input at no charge this
year. Producers who would like the program for their own use in future years
can purchase the program for $25 if they consent to enter their farm data
into the database pool (all entries are listed anonymously – individual farm
data or identity is not listed in the database output summary.)
For more information
about how to get started with the Dairy Trans Cost of Production program,
call Chris Mondak at the Sioux County Extension Office, 712-737-4230.
Pork Quality
Assurance (PQA) Certification
by
Jerry Weiss, ISUE Swine Field Specialist
Swine
producers, you may want to check your PQA card to see what the expiration
date is. Now through early June ISU Extension livestock specialists will be
conducting a number of meetings in Northwest Iowa for producer education for
certification and re-certification.
Check with
your county extension office for the date and time for the one closest to
you. 4-Hers' who have pigs for their 4-H project must also be certified
through this program. In some cases the PQA meeting may be for 4-Hers and a
separate session will be held for producers. However most of the sessions
are for both 4-H youth and adult producers.
The
certification that you receive is good for two years. There is no charge for
attending the certification training presented by ISU Extension staff. There
is also no charge for the actual certification through the National Pork
Board. You may also choose to go to your veterinarian for the educational
portion and have he or she sign the application that you send in to the
National Pork Board.
Soil Temperature and Winter
Survival of Insect Pests
by Todd Vagts, ISUE Crops Field
Specialist
Over the
last several years crop insect pests such as the bean leaf beetle (BLB),
corn rootworm, white grub, and western bean cutworm (WBC) (to name just a
few) have been an increasing problem for crop production in northwest Iowa.
One factor that has been associated with the increased pest populations has
been relatively mild winters since 1997. So you may be wondering what the
winter of 2002-03 has been like in comparison to the last five and what
impact this may have on insect pest populations for the 2003 crop season.
Although it is very difficult to predict pest populations, we can look at
some factors to get a feel of the potential for increased (or decreased)
mortality of insects that over-winter in Iowa.
When
attempting to forecast insect populations we must first determine whether or
not that insect over winters or migrates into Iowa each year. Some of our
most important pests do not over winter but rely on spring weather patterns
to assist with their migration. Insects that migrate to Iowa each year
include potato leafhopper, armyworm, black cutworm and corn earworm.
Understanding the over wintering location and life stage of insect pests
that do over-winter in Iowa may add additional insight to the potential for
over wintering success. Insects that over-winter in the soil have a tendency
to be less affected by winter weather conditions especially if there is
adequate snow cover. Furthermore, insects that over winter as eggs tend to
withstand adverse conditions better than those which over-winter as adults,
pupae or in the immature stages. Insects falling into one or both of these
categories include corn rootworms (eggs laid in soil), soybean aphids (egg),
wireworms (larvae in soil), western bean cutworm (larvae in soil), white
grubs (larvae or adults in soil) and stalk borer (eggs). These insects
probably are affected less by weather extremes.
Insects
that may benefit from mild winters include European corn borer, bean leaf
beetles and to a lesser degree, alfalfa weevil. European corn borers over
winter as larvae in their host plant at the soil surface and bean leaf
beetles over-winter as adults under leaves and in grassed ditches.
When
looking at the severity of the winter it is often more useful to look at
soil temperature rather than air temperature as most over wintering pests
spend their time at or below the soil surface. Snow cover can play a
significant role in insulating the soil and over-wintering habitat of many
insect pests. This was particularly evident with the 2000-2001winter when
we experienced an extremely cold winter yet the area had one of the longest
continuous snow covers in history and most likely provided a very
comfortable environment at the soil surface.
A look at
four inch soil temperatures (Figures 1 and 2) from this winter compared to
the five year average shows two different scenarios from west-central IA
compared to central IA. More snow cover at the Castana location has kept
soil temperatures more constant and near the 5-yr average. Whereas more
spotty snow cover coupled with a few cold periods at the Ames location
resulted in more extremes in the 4-inch soil temperature, which may
ultimately lead to more insect mortality.
Estimating the success of over wintering insect populations is difficult at
best, remember that weather is one of many variables that influence insect
populations.
Information Source:
Winter Survival of Insect Pests. Wisconsin Crop Manager. Bryan Jensen, IPM
Program
Annual Manure
Management Plan Workshops
Kris Kohl, ISU
Extension Ag Engineer, will be conducting workshops for those who need to
update their manure plans for annual submission to the DNR and County Board
of Supervisors. Participants need to bring their old plans and FSA maps of
fields. Cost is $15 per person and includes lunch.
Pre-registration is
requested by contacting the Extension Office where you will be attending.
All meeting times will
be from 10am to 3pm.
Date Location
3/18 Sioux
County 712-737-4230. 805 Hwy 10 West - Orange City
3/19 Palo
Alto 712-852-2865.
2008 10th St – Emmetsburg
3/20 Carroll
County 712-792-2364.
1240 D Heires Ave – Carroll
3/31 BV
County 712-732-5056.
824 Flindt Dr – Storm
Lake
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