News Update
July 21, 2011

Weather-Related Livestock Losses May Qualify for Indemnity Program

Producers who have lost livestock from the recent windstorms or heat may be eligible for payment through the Livestock Indemnity Program (LIP). Iowa State University (ISU) Extension beef program specialist Denise Schwab said the “Food, Conservation, and Energy Act of 2008” authorized the LIP to provide benefits to livestock producers for livestock deaths in excess of normal mortality caused by adverse weather.

Schwab said producers who think they have losses that might qualify should remember that LIP has eligibility requirements and application deadlines.

“To be eligible for LIP, the livestock must be owned by the producer and raised for commercial use as part of a farming operation. Pets or recreational animals do not qualify,” Schwab said. “Contract swine or poultry growers also may qualify for lost livestock if they have a written agreement with the livestock owner setting the specific terms, conditions and obligations of the parties involved.”

Payment for losses is determined by USDA calculations but is approximately 75% of the average fair market value of the livestock, or 75% of the average income loss sustained by the contract grower with respect to the dead livestock, she said. Producers also are restricted by other USDA payment limitations.

Producers who suffer livestock death losses should submit a notice of loss and an application for payment to the local Farm Service Agency (FSA) service center that maintains the farm records for their business. This application needs to be made within 30 calendar days after the loss of livestock was apparent to the producer.

More information is available on the FSA website in this LIP fact sheet. People also can contact their local FSA office for details and to apply.

Visit the Iowa Beef Center (IBC) website, www.iowabeefcenter.org/heatresources.html, for information on heat and heat stress in beef cattle operations, or contact an ISU Extension beef program specialist.

IBC was established in 1996 with the goal of supporting the growth and vitality of the state’s beef cattle industry. It comprises faculty and staff from ISU Extension, College of Agriculture and Life Sciences and College of Veterinary Medicine, and works to develop and deliver the latest research-based information regarding the beef cattle industry. For more information about IBC, visit www.iowabeefcenter.org.

— Release by Denise Schwab and Sherry Hoyer, Iowa State University.

Costly, Job Stifling Overregulation Still Top Concern in Rural America

The U.S. debt ceiling continues to dominate debate in Washington, D.C., this week. A great deal of the discussion hinges on job creation and fiscal responsibility. However, National Cattlemen’s Beef Association (NCBA) Vice President of Government Affairs Colin Woodall said more attention should be given to curbing the administration’s onslaught of “burdensome, costly and scientifically unfounded” regulations as a way to cut spending and prevent further job loss in rural America.

“There are so many factors being overlooked inside the Beltway that could stimulate the economy, create jobs and assist in reducing wasteful, unnecessary spending. The administration would minimize, if not eliminate, the risk of pushing farmers, ranchers and small businesses out of business if needless, costly regulations were never proposed. This is a real threat and one that needs to be addressed during spending debates,” said Woodall.

Several members of Congress, including Congresswoman Kristi Noem (R-S.D.), agree that overregulation is a costly concern for farm and ranch families.

“When I ask South Dakota producers what is the number one thing we can do in Washington, D.C., to help create jobs and grow our agricultural economy, the answer is simple: Give us more regulatory certainty,” said Rep. Noem. “Not knowing what threatening regulation might be coming down the line from the Environmental Protection Agency (EPA) dampens any small business owner’s appetite for expanding their operation or hiring another employee. I believe it is essential that we stop the job-destroying overreach of the EPA, so we can give our producers the certainty they need to create jobs and grow our economy.”

According to Woodall, NCBA fully intends to continue bringing widespread attention to the administration’s “unprecedented” government overreach. Most recently, NCBA has turned to social media as way to do just that. On its YouTube channel (www.youtube.com/beltwaybeef), NCBA is tackling the administration’s regulatory overreach, he said. On July 20, 2011, NCBA launched its “Regulatory Train Wreck” video, which presents the slew of regulations posing a threat to U.S. cattle ranchers. Woodall said if regulatory oversight does not become a priority, the administration’s regulatory train could send farmers and ranchers into bankruptcy, which would be “detrimental” for the U.S. economy and food security.  

— Release by NCBA.

Prepare Now to Extend Fall Grazing Season

Farms grazing beef, sheep and other animals need to act in mid-summer if they wish to extend their grazing seasons for the upcoming fall and winter season. Making plans now to stockpile grass pastures, or to plant annual crops for late season grazing can reduce animal feed costs per day by 30% to 50% for every day grazed compared to feeding hay. At a recent Midwest agricultural conference a university livestock specialist said the most profitable beef cow-calf farms in his state are the ones that feed the least amount of winter hay. With the escalating price of fuel, machinery and labor, it is more economical to let the animals harvest the forage and distribute the manure as long as possible in the late fall and early winter rather than to mechanically harvest hay and then feed it.

There are many options that can be used to ensure there will be forage to graze late in the fall.

Set aside or stockpile some current pasture starting in July or early August. Don’t graze it until October or later. This option requires enough current pasture acres to afford to set some aside for the fall while still having some to graze. What many farms do is utilize grassy hay fields where the first or second cutting was harvested and stockpile regrowth for fall grazing. Trucking cattle to more distant fields or to rented lands is a practice used in late summer to early fall, allowing the home pastures to stockpile for a November or December grazing. These stockpiled acres, if mainly grass, will require a nitrogen application in mid- to late-August of approximately 50 pounds (lb.) per acre of nitrogen in a stable form like ammonium sulfate or a slow-release, protected urea to enhance the fall yield.

Grazing cornstalks in harvested cornfields is one of the lowest-cost options of extending the season. The nutritional needs of beef cows without calves are met quite well with the stalks, leaves, husk and grain that are left behind after combining a cornfield. Research has shown that under normal field conditions the impact of soil compaction and erosion are minimal and are offset by the cow’s ability to recycle the large quantity of corn residue that today’s high plant populations generate. This reduces spring tillage requirements, lowering fuel costs and leading to timelier planting. All that is required is fencing (can be temporary), and a water supply. Usually 0.75-1.5 acres of stalks are needed per cow per month depending on cow size, cow body condition and the amount of corn residue.

Planting annual crops in late July to early August that will grow well in the cool frosty conditions of fall is another option. Brassicas such as turnips and rapeseed are commonly used along with mixtures of small grains like oats, triticale, rye and now even some millets and radishes are being used. These plants grow fast, usually in 70-100 days, producing quality forage with significant yields to extend fall grazing. They hold their feed quality well, especially the below ground tubers of turnips, which will stay nutritious most of the winter. Sheep and beef cattle will graze through moderate snow levels of 12-18 inches (in.) if persuaded to, and it is usually the inexperienced herd manager who gives up on the brassicas before the animals do.

One common planting of an annual mix is a grazing turnips seeded at 2-4 lb. per acre along with 30 lb. of oats per acre. The oats provide a fiber source that balances out the lush, high-quality turnips to maintain better animal rumen function. Planted in late July to early August in a weed-free soil, the simplest planting method is to blend the seed with the fertilizer at the mill and broadcast the seed/fertilizer mix in one pass, followed by a cultipacking of the field. For the turnips, this shallow covering of the seed with soil is advantageous, as when the softball-sized tuber matures, more than one-half of it will be exposed above the soil surface, making it easy for the animals to feed on. Just don’t leave the seed mixed with the fertilizer in the spreader much over six hours, as the salt from the fertilizer can burn the seed. Nitrogen is important to turnip growth, and about 60 lb. per acre is needed at planting time (from fertilizer, manure, etc.) and turnips will respond with even more growth if an additional 40 lb. per acre of nitrogen is broadcast over the top in mid- to late-September.

A new wrinkle in the annual planting mixes for fall grazing is a cocktail mix of cold-tolerant annuals. Pioneered in North Dakota, this mix contains a blend of high-quality, low-fibrous plants along with some that provide good feed quality while providing higher fiber levels for better animal health. Research at North Dakota State University (NDSU) has shown that these plants seem to have a synergistic effect on each other. When planted together in the mix, these plants actually yield better than when grown separately. After testing many cocktail mixes that included sunflowers, soybeans and cowpeas, to name a few, the mix that NDSU deemed to be the most cost-effective and high-producing for late fall grazing is one containing 0.75 lb. of Pasja turnips, 1 lb. of oilseed radish, 15 lb. of oats and 4 lb. of foxtail millet, all planted on a per-acre basis.

A pasture walk will take place Oct. 6 at 6 p.m. at the MSU Kellogg Biological Station Dairy Center with one focus being extending the fall grazing season. One of the highlights of this night will be research conducted at MSU on the use of gibberellic acid on pasture grasses to stimulate additional fall pasture growth.

For more information contact MSU Extension educator Jerry Lindquist at lindquis@anr.msu.edu or toll free at 1-888-678-3464 and type in Osceola County.

— Release by Jerry Lindquist, MSU Extension.

Profitable Year Predicted for Commodities in 2012

A recent University of Illinois Farm Economics Facts and Opinions report predicts net returns for 2012 at $269 per acre for corn and $136 per acre for soybeans, indicating a profitable year.

“For corn we’re looking at non-land cost at $513 per acre for central Illinois high-productivity land,” said agricultural economist and farm management specialist Gary Schnitkey. “That’s up from last year when we had $418 projected for 2011. The $513 cost, if it happens, is the second highest on record, with 2009 higher at $535. Soybeans are projected to be $301 per acre, which would be the highest ever.”

Schnitkey said the costs were figured using data from 2010, which is the last year with actual numbers, then projected forward based on current input prices. The costs are based on data from farms enrolled in Illinois Farm Business Farm Management (FBFM) and the fertilizer and seed costs come from a variety of sources, Schnitkey said. “The cost includes direct costs, which are fertilizer, pesticides, seeds, drying and storage and crop insurance; power costs relating to machinery and general overhead costs,” Schnitkey said. “We also added a line cost, which is an average cash rent. We used $230 per acre as an average.”

Schnitkey reported that the projected break-even prices, which would cover all costs of production, are $3.81 per bushel for corn and $9.48 per bushel for soybeans.

“Both of those are pretty high and suggest prices above $4 per bushel for corn and $10 for soybeans for farmers to be profitable in this new cost environment,” he said. “But, while we’re looking at a good year, agriculture can change quickly.”

Visitors to the U of I farmdoc website can view the full report at http://www.farmdoc.illinois.edu/manage.

— Release by Debra Levey Larson, University of Illinois.

USDA Designates Umatilla County in Oregon as a Primary Natural Disaster Area

The U.S. Department of Agriculture (USDA) has designated Umatilla County in Oregon as a primary natural disaster area due to unseasonably warm weather followed by frosts and freezing temperatures that occurred Feb. 24-26, 2011.

“Umatilla County will soon see some much needed federal disaster assistance for its agricultural industry,” said Agriculture Secretary Tom Vilsack. “This action provides help to hundreds of producers who suffered significant losses to their apple and cherry crops.”

Farmers and ranchers in the following counties in Oregon and Washington also qualify for natural disaster assistance because their counties are contiguous:

• Grant, Morrow, Union and Wallowa in Oregon;
• Benton, Columbia and Walla Walla in Washington.

All counties listed above were designated natural disaster areas July 20, 2011, making all qualified farm operators in the designated areas eligible for low-interest emergency (EM) loans from USDA’s Farm Service Agency (FSA), provided eligibility requirements are met. Farmers in eligible counties have eight months from the date of the declaration to apply for loans to help cover part of their actual losses. FSA will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. FSA has a variety of programs, in addition to the EM loan program, to help eligible farmers recover from adversity.

USDA also has made other programs available to assist farmers and ranchers, including the Supplemental Revenue Assistance Program (SURE), which was approved as part of the Food, Conservation, and Energy Act of 2008; the Emergency Conservation Program; Federal Crop Insurance; and the Noninsured Crop Disaster Assistance Program. Interested farmers may contact their local USDA Service Centers for further information on eligibility requirements and application procedures for these and other programs. Additional information is also available online at http://disaster.fsa.usda.gov.

— Release by USDA-FSA.

— Compiled by Katie Gazda, editorial intern, Angus Productions Inc.