Wishing you every happiness this holiday season and throughout ...

No. 342, December 2013 Published by INDIAN AGRICULTURAL PROGRAM OF ONTARIO

SEASONS GREETINGS FROM THE BOARD OF DIRECTORS

Agribusiness

Page ................................................ 2

Market Information Page ................................................ 3

Livestock Information Page ................................................ 4

Crop Information Page ................................................ 5

Calendar of Events Page ................................................ 6

Other News Page ................................................ 6

IAPO Board of Directors Back Row left to right: William J. Brant, Chairman (Peterborough District), Amanda Ioannou (Peterborough District), Jay Wright (Brantford District), Ted Davis Jr. (Brantford District) Front Row: Robert Riddell (LRC Chairman), Margaret Manitowabi (Sudbury District) and Jennifer Whiteye (London/Bruce District)

Wishing you every happiness this holiday season and throughout the coming year.

Doug Macpherson—DM External Programs Coordinator [email protected] Grant Edwards—GE Farm Management Advisor [email protected] Jamie Hall –JH General Manager [email protected] Mark Leahy—ML Farm Management Advisor [email protected] Comments and Feedback Welcomed Indian Agricultural Program of Ontario Box 83, Station Lambeth, London, ON N6P 1P9 1-800-663-6912 [email protected]

Agribusiness YEAR END TUNE-UP TIPS FOR YOUR FARM BUSINESS While the work on a farm never ends, most farmers have a stretch of “not-quiteso-busy” time between fall harvest and spring planting when things ease up a bit. This is a great point to assess your farm’s financial performance in 2013 and start the business planning process for 2014. Below is a list that you can do this winter to tune-up your farm business and have it running as smoothly as possible in 2014. Update your Balance Sheet on January 1st: One of the most important things you can do to accurately assess your farm’s financial performance is update your balance sheet as of January 1st every year. The balance sheet lists all of the farms assets and liabilities. Farm Assets include everything that the farm owns. An item that is not completely paid for still appears on the balance sheet at its market value. Assets could include land, buildings, hay in the barn, livestock, crops in the field, unsold grain, purchased feed, prepaid fertilizer, value of fuel in the storage tank, etc. Each asset should be valued at its market price as of January 1st. Money expected from a crop insurance claim is listed as an asset. Farm Liabilities are a list of every debt that the farm is responsible for. Liabilities include farm mortgages, machinery loans, operating loans etc. Liabilities should also include money owed to any suppliers as of January 1st. This may include an unpaid bill for a tractor repair or an unpaid invoice for feed delivered to the farm prior to January 1st. Unpaid land rent is also a liability. Preparing the balance sheet on January 1st eliminates much of the seasonal variation in crop inventories. It allows you to make an accurate comparison between the most recent year’s balance sheet and prior years. It also lets you make “accrual adjustments” to your farm’s income statement for changes in inventories, prepaid expenses, and other changes that occurred between one year’s balance sheet and the next. The ability to make these accrual adjustments will give you a more precise calculation of net farm income and profitability.

A couple of things to keep in mind as you update your balance sheet. First, take a good physical inventory of stored crops, feed, market livestock, and supplies. Be as thorough and as accurate as possible. Finally, be sure to review the farm’s equipment list so that any new equipment purchased during the year is added to the balance sheet, and any equipment sold is taken off. Evaluate your Risk Management Strategies: Obviously, farming can be a risky business. While it is impossible to eliminate every risk, some of the most critical risks can be reduced. Make sure that your farm insurance coverage is sufficient to cover any losses that your farm business cannot absorb. Review the farm’s property and machinery insurance policy thoroughly even though the policy may not be due. Are the values current and are all the items listed? What are your deductible values if you are in a claim position? What perils are covered against loss? Liability coverage is a necessity on the farm. Review your liability coverage with your insurance agent. Every farm business operator should have his agent at the farm every year. Do you have life and disability insurance? Even a minimal amount of coverage will protect your family in the event of a tragedy. Crop and livestock insurance programs are important risk management tools as well. Risk management tools such as insurance may seem costly but an uninsured loss could cripple your farm business. Evaluate Your Farm Finances: Year end is a time to reflect on the farm business’ finances. If, at certain times of the year, you find yourself putting farm expenses on credit cards or having to decide between paying the feed bill and paying the utility bill, it would be a good idea to establish a operating line-of-credit (OLOC) for the farm. The interest rate on an OLOC will be much lower than credit card interest rates. In addition, interest only accrues when you are carrying a principal balance. Using an OLOC is a good way to maintain the farm during months when cash flow is short. If you already have an OLOC, this is a good time to review it with your lender. Is your credit limit appropriate for your needs? Are you only using the line for operating expenses, or have you been using it to make capital purchases that should really be set up on a term loan? Have you been able to pay the principal balance on your OLOC down to zero at least one month each year? DM

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Market

Category

Price Range $

BEEF MARKET

Rail Steers

210-215

Fed steers

106-133

120

143

-4

Fed heifers

116-131

126

148

+2

Cows

51-76

64

123

Steady

Bulls

67-91

79

130

-1

700 – 799

129-166

150

171

Steady

600 – 699

128-174

158

185

-1

500 – 599

134-181

163

195

-3

700 – 799

116-147

137

166

+7

600 – 699

118-151

136

159

-4

500 – 599

121-157

142

174

-5

Prices are courtesy of the Beef Farmers of Ontario Weekly Market Information Report for the week ending December 6, 2013. Rail grade prices have taken a leap this week setting record prices. Steer calves and heifers in all weight categories are off compared to last month except for seven - eight weight heifers. Cull cows and bulls are holding steady. Rail grades prices are up $3 and are at record levels. Fed steers are off $4, heifers are up $2. Stocker steers under seven weights are steady to $3 lower, heifer prices are off about with heavier heifers showing strength. Cull cows are steady averaging $64 and bulls are off by $1. An average of $64/cwt. for cull cows is still a reasonable return and $7 higher than last year. ML

CORN: The USDA released their World Agricultural Supply and Demand Estimates (WASDE) report on Tuesday, December 10. The report raised demand numbers for US corn crop, which resulted in a reduced carryout. Increased demand for the crop came from ethanol and export trade markets. World carryout was also reduced in the report by 1.83 million tonnes. SOYBEANS: The USDA WASDE report for soybeans was much of what was expected by the industry. The US did raise production numbers for Argentine by one million tonnes and maintained Brazilian production at 88 million tonnes. The outlook for the South American production of soy-

Change last month +3

Stocker heifers

All prices are on a hundred pound basis (cwt)

that there would be cuts made to the US carryout. However, the report did the opposite. US wheat supplies were increased ten million bushels on higher projected imports. Much of that hinged on the increased numbers in Canadian production. The carryout numbers both in the US and globally for wheat were increased.

Cash Bids - Delhi 15.00 14.25 13.50 12.75 12.00 11.25 10.50 9.75 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00

Corn (Nov 2013) Soys (Oct 2013)

Soys ( Nov 2014) SRW (July 2014)

07-Aug 14-Aug 21-Aug 28-Aug 04-Sep 11-Sep 18-Sep 25-Sep 02-Oct 09-Oct 16-Oct 23-Oct 30-Oct 06-Nov 13-Nov 20-Nov 27-Nov 04-Dec 11-Dec 18-Dec 25-Dec

Excerpts taken from Dec. 11th, 2013 Grain Market Commentary by Todd Austin, GFO

Top Price

Stocker steers

beans continues to be strong. While the US carryout was reduced, global carryout was increased. January soybean futures remained neutral late last week but started climbing early in the week to finish Wednesday, December 11 at $13.44 per bushel. WHEAT: The industry was hoping

Canadian

CROP MARKET

Ave Price

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Livestock Information WHY SOME COWS ARE NOT IN CALF Every year some cows turn up not in calf. This fact can be discovered by waiting until calving season to see if all cows produce a calf. This often means waiting a few extra months just in case the cow was bred late. Those not in calf have been fed for many months with nothing to show. Pregnancy checks by your veterinarian speed up the process. Pregnancy checking the cowherd in the fall after coming off pasture can be enlightening. It also provides an opportunity to cull cows coming up open, add some income and save on winter feed. This helps cover the cost of pregnancy checking. Mark Hilton, DVM from Purdue University suggests that herds near 100% gestation rate may not be good either. It usually means a very long calving season or the herd has been overfed adding costs to the business. When a cow is open in the fall it may not be her fault. There is a bull involved as well! When a large number of cows are open it suggests the bull is the problem. The bull may not be fertile. The bull may be suffering from overuse. The first group of females may be bred but fewer are in calf as the season proceeds. Dr. Hilton recommends a month of bull age for every cow in a 65 day breeding season. A two year old bull should be able to look after about 25 cows. A 50 cow herd needs two, two-year old bulls or one four year-old bull to get the job done. Running a yearling bull with a mature bull will not work as well because the mature bull will be dominate leaving little activity for the yearling. If a bull appears to lack libido or interest, Dr. Hilton suggests leaving him with a group of cows. If he spends the day in the shade when a cow is in heat he isn’t earning his keep. The key to knowing if cows are bred is a pregnancy check. When cows are in wintering area, call your vet. A secure handling facility makes the job go smoothly. ML

CANADIAN BEEF HERD

The Canadian beef herd is not in the expansion phase yet according to Anne Wasko, Gateway Livestock Exchange. Calf prices are higher than last year. Lower feed prices for corn in particular have encouraged bidding by feedlot managers. Fed cattle numbers are tight giving feedlots more leverage on price. It is not enough to entice herd expansion to date.

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M Cow calf farmers have to decide whether to take profits now or retain heifers for long term investment. For older farmers selling now may be an exit strategy. For feedlots, reaction to COOL in the U.S. is of concern. Tyson has decided not to buy Canadian finished cattle due to COOL restrictions. This leaves two U.S. buyers of Canadian cattle with limited capacity. Ironically, there is a shortage of fed cattle in the country. This fall we have seen record prices for fed cattle in Canada. Tight supplies and lower feed prices encourage positive margins for feedlot managers. ML

ONTARIO BRED COW SALES

Ontario Stockyards Inc., December 6, 2013 – 230 Bred cows

Exotic and Exotic X Top quality bred cows

$1,400 - $1,775

Avg. quality bred cows

$1,100 - $1,400

AVERAGE CARCASS WEIGHTS CANADA Date

Steers

Heifers

November 30, 2013

867

799

December 1, 2012

882

824

This chart, courtesy of Beef Farmers of Ontario, reflects the impact of tight fed cattle supplies and higher prices. When cattle supplies are tight and price is strong, feedlot operators have more leverage and are more current with cattle shipments. This is reflected in lower carcass weights. ML

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Crop Information CALCIUM NUTRITION IN PLANTS Source: “Calcium Nutrition in Plants” Greg Patterson, CCA, A & L Canada Laboratories.

The role of calcium in plants is quite similar to that in people; it is essential for good growth and structure. Insufficient calcium levels lead to deterioration of the cell membrane; the cells become leaky resulting in the loss of cell compounds and eventually death of the cell and plant tissue. Calcium, in addition to its role in cell structure, also plays a role in regulating various cell and plant functions as a secondary messenger. This function as a secondary messenger assists in various plant functions from nutrient uptake to changes in cell status to help the plant react to the impact of environmental and disease stresses. Adjusting soil pH based on soil test results is basic in soil fertility. Without adequate soil pH nothing else works properly in relation to plant nutrient uptake and plant nutrition. However, it should not stop at this, as soil pH alone is not always the best indicator of soil calcium levels. The ideal percentage saturation for calcium should be around 70% for most crops and even at that level, some crops would require more calcium. Calcium and Nutrient Uptake Calcium helps regulate the protein pump that controls the uptake and movement of nutrients into the root and throughout cells within the plant. At the root level, calcium activates stimulation of the protein channels that take up nutrients. Adequate availability of calcium at the root surface is required for this process to work effectively. Calcium and Heat Stress When temperatures during the day increase above 34° C, the ability for the plant to absorb sunlight and turn that energy into food decreases rapidly. Heat stress in general tends to increase stem length while reducing leaf size and area in a number of crops. Calcium is able to relieve heat stress effects by improving the entry & exit of water (in vapor form) and gases and other cell processes. Calcium is also believed to have an influence on the development of heat shock proteins that help the plant tolerate the stress of prolonged heat. Calcium and Disease In plant nutrition, calcium is often referred to as the plant’s first line of defense. Many disease organisms that infect plants do so by penetrating the leaves and plant stem. The higher the calcium content in plants, the thicker the stem and leaf, and the greater the ability to withstand disease and insect penetration. In some cases, calcium foliar applications can greatly decrease the potential of disease. Calcium and Crop Quality It has long been understood that calcium plays a major role

in the quality and health of many crops. Check your soil samples for adequate levels of Calcium (70%) and take the necessary steps to improve. Dolomitic or Calcitic lime will supply sufficient calcium to maintain crop growth. Material

Percent Calcium

Calcitic lime

40%

Dolomitic lime

22%

Gypsum

22%

Ordinary superphosphate, 0-20-0

20%

Triple superphosphate, 0-46-0

14%

SOYBEAN CYST NEMATODE (SCN) Source: OMAFRA Soybean cyst nematode (SCN) is often confused with other common problems such as nutrient deficiencies, herbicide injury, soil compaction, drought, flooding or root rots. By the time above-ground symptoms from SCN feeding become noticeable, most fields have lost 25%-30% yield potential to the nematode. Early detection through scouting and soil testing is critical. If soybean yields in any field have decreased for no apparent reason, plants should be carefully dug (not pulled) and soil gently removed from the roots. Cysts are white to yellow and about the size of a pinhead. Rotating nonhost crops such as corn, wheat, alfalfa or vegetable crops such as tomatoes, with resistant varieties, will lower SCN populations and improve yields on SCN-infested fields. Rotation of SCN-resistant varieties is recommended to reduce shifts in the nematode population. When selecting your varieties for 2014 keep in mind a rotation of SCN-resistant varieties is recommended to reduce GE shifts in the nematode population.

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SWEET SEASONS GREETINGS

Bees at this time of year are like the children in the Christmas poem “Twas the night before Christmas.” They are “all snug in their beds”. Bees need our help to survive the harsh Ontario winter. There must be between 70 and 100 pounds of honey stored in the hive to sustain the colony over the long winter. Most beekeepers insert a small stick in the entrance before winter. This reduced entrance helps keep cold winds away as well as snoopy critters. It is important however, that a small bottom and top opening be left to provide an escape for the bees and the humidity within the hive. Moisture build up within the hive can lead to death of the entire colony. Most beekeepers in Ontario use some form of insulated hive cover on the outside of the hive during the winter months. There are many different types available. In the picture, my hive is covered with a specially made waterproofed cardboard shell, which fits over the hive box. The black colour transfers some the sun’s warmth to the hive on cold winter days. Note that openings remain after the cover is in place. A colony of honeybees does not hibernate in winter. The bees form a cluster, clinging tightly together on the combs in the hive. The outer bees form an insulating shell that prevents excessive loss of heat. As the bees on the outside of the cluster become cold, they will switch places with their warmer comrades. Within the cluster, the warmth permits normal cluster activity such as rearing the young and consuming food. During the winter the cluster, usually moves from the bottom hive box to the top as honey stores are used. Several thousand bees will normally die during the winter. A per winter hive population of 40,000 bees may be reduced by half during the winter months. On the warmest of winter days, healthy bees will take short flights outside the hive to clean themselves and the hive. This creates yellow spots on the snow in a small radius around the hive. Dead bees will be carried outside the hive as well. It is the beekeeper’s winter task to ensure that the hive entrance is not blocked with dead bees or snow and ice. The picture shows dead bees that have been carried from inside the hive to the hive’s porch. Winter is an anxious time for a beekeeper. You cannot see what is happening within the hive and will not know until the arrival of spring. I make frequent visits to my four hives to make sure the openings are not obstructed and to remove dead bees from the front porch. On the warmest of winter days, I am reassured at the sight of bees crawling at the entrance or

even some bees taking cleaning flights. A strong and healthy hive with ample food supplies has a very good chance of surviving the winter just fine. My 2013 honey crop was below normal averaging 70 pounds of honey per hive. There were the usual challenges of weather, swarms and missing queens but I did manage to have four strong hives ready for winter. My hives seem to escape any noticeable effects of pesticide poisoning this year. This has been my third year as an apiarist and I cannot think of a more interesting or rewarding endeavour. Family and friends enjoy the taste of our pure natural honey. Our grandchildren enjoy telling the story of “Grandpa’s Honey” as they pass out gifts to teachers, coaches and friends during this season of giving. DM Happy New Year Everyone!

Fun Farming Facts What percentage of Canadians are farmers? A) 3% B) 25% C) Just enough to keep food in the grocery store. Answer: 3%

Other News

Calendar of Events Dec. 15th - Agricorp deadline to report soybean and corn yields. Jan. 7th & 8th - Southwest Ag Conference, University of Guelph, Ridgetown Campus. To register call 1 866 222 9682 or register online at www.southwestagconference.ca Registration deadline is Dec. 22/13. Jan. 9th - Business Management Meeting, to be held in Six Nations, contact Mary for more information at the Lambeth office at 1 800 663 6912. Jan. 18th - FarmSmart Conference - Beef Symposium http://farmsmartconference.com, Rozanski Hall, U of G Jan. 21st - Maple Syrup Seminar AOK First Nations, to be held at the AOK Community Centre from 10am - 3pm. Jan. 30-31, Feb 1-2 Organic Conference, Guelph University Centre http://www.guelphorganicconf.ca/ Please contact us if you have an item for the Calendar of Events.

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