Newsletter | Past Issues
June,
2008
In This Issue:
OSU Enterprise Budgets - 2008
ACRE (Average Crop Revenue Election)
Provisions In Conference Farm Bill
The Day U.S. Agriculture Changed:
March 17, 2008
Migrant Labor Resources
Camelina in Ohio
On-Farm Safety
Great Lakes Manure Handling Expo
Climate Change Economics
Impact of Crude Oil Prices on Corn
and Soybean Production Costs
Do
you have a question that you would like to ask the Ohio
AG Manager Team? If so, click here to email your
question.
OSU
Enterprise Budgets - 2008
Including Field Crops, Forages,
Dairy, Sheep and Specialty Crops
Barry Ward, Leader, Production Business Management,
OSU Extension,
Department of Agricultural, Environmental and Development
Economics
Brian Freytag, OSU Extension Intern, AEDE Undergraduate
Budgeting is essential to helping you make important
decisions regarding the commitment of resources to the
most profitable enterprises on the farm. Budgeting will
help you answer many questions. Crops or Livestock?
Corn, Soybeans, or Wheat? Should I invest more of my
resources in high-value crops?
Budgets that are well thought out and prepared, showing
all revenue and costs can help you answer these questions.
Without some form of budgeting and some method to track
your enterprises’ progress, it will be a very
difficult process to determine your most profitable
enterprise(s) and if you’ve met your goals for
the farm.
Ohio State University Extension has had a long history
of developing “Enterprise Budgets” that
can be used as a starting point for producers in their
budgeting process. Newly updated Enterprise Budgets
for 2008 have been completed and posted to the Farm
Management Website of the Department of Agricultural,
Environmental, and Development Economics. These budgets
can be found at the following website:
http://aede.osu.edu/Programs/FarmManagement/Budgets/
Enterprise Budgets updated for 2008 include:
• Corn – Conservation Tillage (NH3, UAN
and Urea as Nitrogen sources)
• Soybeans – Round-up Ready, No-till
• Wheat – Conservation Tillage, (Grain and
Straw)
• Alfalfa Hay – Spring Seeding
• Grass hay – Large Bale System
• Dairy Cow and Replacement – Large Breed
• Ewe and Lamb - Winter Lambing
• Retail Sweet Corn – Conservation Tillage,
Hand Harvested
• Large-Scale Popcorn – Conservation Tillage
Our enterprise budgets are compiled on downloadable
Excel Spreadsheets that contain formulas for ease of
use. For those of you without Microsoft Office, you
can use the freeware office suite “OpenOffice”
to view these files. You can access this at http://ww.openoffice.org.
Users can input their own production and price levels
to calculate their own numbers. These Enterprise Budgets
have a new look with color coded cells that will enable
users to plug in numbers to easily calculate bottom
lines for different scenarios. We have included detailed
footnotes to help explain the methods and sources used
to obtain the budget numbers. Starting this year, we
will be updating these Enterprise Budgets periodically
during the year to reflect any large changes in prices
or costs. Budgets will include a date in the upper right-hand
corner of the front page indicating when the last update
occurred.
Another major update to these budgets is the addition
of a “Machinery Costs” page. We make it
available to show all the steps involved in the calculations
of the machinery. Click the “Machinery Costs”
tab at the bottom of the spreadsheet to view these expanded
calculations.
Included in the Sweet Corn budget is a new system for
calculating chemical costs. As an alternative to inputting
the chemical costs directly, the budget separates the
chemical applications by different growth periods (i.e.
at planting and during silking for insecticides). Users
can input the application rate (by typing the number
in the yellow box, then selecting the unit in the dropdown
cell in green) and their cost per unit (the unit will
automatically change, so users can leave this as is)
and the budget formulas will do the calculations for
you and give you the chemical costs at various stages.
This system is a trial and we are asking for feedback.
Please e-mail your constructive feedback to: Brian Freytag,
freytag.21@osu.edu
Highlights (or lowlights) of this years Crop Enterprise
Budgets include increased prices for diesel and nitrogen.
Three different Corn Production Budgets were developed
to view the cost implications of using different nitrogen
sources. We have included Anhydrous Ammonia (NH3), UAN
(or 28% Nitrogen), and Urea. To help streamline your
ability to view the costs of the fertilizers per acre,
simply go to the Fertilizer footnote in any crop budget
(usually footnote 3 or 4) and input the costs per ton
of Nitrogen, MAP and Potash, and the budget formula
will automatically calculate the cost per lb. of actual
N, P2O5, or K2O for you.
The entire set of Enterprise Budgets can be accessed
at:
http://aede.osu.edu/Programs/FarmManagement/Budgets/
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ACRE
(Average Crop Revenue Election) Provisions In Conference
Farm Bill
Carl Zulauf, Professor, Ohio State University, May 2008
Average Crop Revenue Election (ACRE) is a farm program
option for all covered commodities and peanuts for the
2009-12 crops, 2010-12 crops, 2011-12 crops, or 2012
crop. Once made, the election is irrevocable. The election
applies to all covered commodities and peanuts grown
on the farm. ACRE must be selected (current suite of
farm programs is the default selection). Read Dr. Zulauf’s
full article here:
http://aede.osu.edu/resources/docs/pdf/EQAEZSLM-LNPH-NDTU-4KO1JBHWS9YSEFBJ.pdf
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The
Day U.S. Agriculture Changed: March 17, 2008
Carl Zulauf, Ohio State University, April
2008
On March 17, 2008; elevators in many areas of the U.S.
stopped offering farmers forward price contracts for
crops of corn, soybeans, and wheat to be harvested in
2008 and beyond. Forward contracts were reestablished
a few days later. On March 31, 2008, the same sequence
of events occurred: forward contracts were no longer
offered, but reestablished later. Forward contract prices
are used extensively by farmers to (a) guide decisions
on which crop to plant and (b) to manage the risk that
prices will be lower at harvest than at planting. It
is not inappropriate to argue that forward contracts
are a centerpiece of most farmers’ risk management
strategies. Read Dr. Zulauf’s full article here:
http://aede.osu.edu/resources/docs/pdf/3MCP7S4I-X0JN-NRMD-50ZDS7QWFDHOEW9V.pdf
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Migrant
Labor Resources
Francisco A. Espinoza, Ag & Hort
Labor Education Program, Agricultural Business Enhancement
Center
Helping You Help Yourself
For both employers and Hispanic workers in Ohio’s
agricultural, horticultural, dairy, and nursery &
landscaping operations, economics is the thing: production
and profitability. It’s why producers invest so
much and workers travel so far. It is the bottom line.
Though the factors of on-the-job activities are primary,
there is an important secondary focus on the social
and personal issues of the workforce. Workers may need
medical help or immigration information. Pre-season
arrivals may initially lack food and money resources.
Spanish-only workers may ask about English classes and
religious services. With a producer’s focus on
the job at hand, where do the solutions for these worker
issues come from? While workers often seek their own
answers, and often get help from their employer, there
are benefits to a positive relationship with individual
agencies or networks like FALCON in Northwest Ohio.
Your Tax Dollars at Work
Many agencies and organizations provide programs and
services that actually are your tax dollars at work.
There are state, federal, local, and non-profit organizations
working under budgets and grants geared specifically
to supporting both producers and their Hispanic labor.
Their services come at little or no cost to employers
or workers, since many are funded through tax monies
as well as through charitable donations. The focus is
on the issues, needs, ideas & support of both labor
and producers to promote Ohio’s agriculture and
farm economies.
Ohio Dept. of Jobs & Family Services
As an individual organization, ODJFS is a merger of
the old Ohio Bureau of Employment Services and the Ohio
Department of Human Services. County JFS offices may
provide services or information related to food &
housing, daycare, health & medical, education, and
transportation, issues that may concern your labor.
Recruitment of labor is addressed through Interstate
Clearance Orders for U.S. labor and through H2A orders
for foreign labor. The ODJFS Farm Program interacts
with both producers and workers using a 4-District plan,
including outreach staff and the Migrant Ombudsman.
Developing good relations with supply-state agencies
has also helped to inform workers about Ohio agriculture
and social programs and services. Texas Migrant Council
and Texas school districts with migrant families have
included Ohio in Parent Conferences and health fairs.
(Contact:Benito Lucio, Jr., 800-282-3525).
FALCON Network
As a network of collaborating agencies, FALCON is committed
to serving Ohio’s migrant and seasonal farmworkers
and agricultural employers. Monthly meetings chaired
by the Ag & Hort Labor Education Program serve to
share information on programs and services for producers
and their labor. Contact with workers is both in-office
and on site. An annual FALCON Pre-Season Conference
has agencies, producers and guest speakers planning
for the coming year by discussing issues of labor availability,
immigration and programs and services.
Texas and Florida farmworkers have voiced that the provision
of good programs and services to meet their off-job
needs is an important recruitment and retention concern
for them. Therefore, a good relationship among producers,
workers and agency networks like FALCON will help farm
operations deal with these issues. Some successful projects
achieved with the collaboration of producers, communities
and the FALCON network include:
• FALCON Pre-Season Conferences
• Retaining the Migrant Rest Center Operation/Liberty
Center
• New Migrant Head Start Center/Fremont
• PRC Cash Program for producers and labor
Networking Tips to Remember
Though FALCON is centered around Northwest Ohio, various
member agencies operate statewide. Wherever you are
in Ohio, working with such agencies and their resources
can be beneficial to your daily relations with your
labor and even their recruitment and retention. Help
them help you by discussing your issues and ideas.
• Learn about the agencies in your area; file
their information/resources.
• Let service providers know your specific needs
and those of your workers.
• Establish and maintain working relationships
with agencies and networks.
• Try to participate in or promote agency-sponsored
programs and activities.
• Let your workers know that you support agency
programs and services.
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Camelina
in Ohio
Wm. Bruce Clevenger, OSU Extension Educator,
Defiance County
Recent interest in alternative feedstock oils for Ohio
biodiesel manufacturing has prompted interest in growing
camelina in Ohio. Camelina (Camelina sativa) is a member
of the Brassicaceae family that includes mustard, cabbage,
and rapeseed. It is also know as false flax and has
been cultivated in Europe and is native to the Mediterranean
and Central Asian areas.
While Ohio has experience with other oilseed crops like
soybean, sunflower and canola, camelina is being studied
for some potential advantages. The oil content of camelina
seed has ranged from 29 – 41 percent but the reason
it has been used for oil is that it can be grown on
marginal, low productivity soils and requires lower
inputs of nitrogen and water. Much of the current camelina
production is in Montana, Wyoming, Nebraska and other
High Plain States. Camelina has been added to the continuous
spring wheat production system to add crop rotation
on land that would not support corn or soybeans due
to marginal, low productivity soils. The nitrogen input
for camelina is as much as 50% less than canola.
Camelina is not expected to displace corn and soybean
acres in Ohio especially at current commodity prices.
However, research is studying if camelina could be added
to Ohio’s low productive land options or be integrated
into a double crop or winter crop system.
Camelina is being evaluated for lbs of oil produced
per acre. As with soybeans, there are two crop components
that need studied and evaluated for their economic return.
Those components are oil and meal. If low productive
land supports 40 bushels of soybean per acre with a
20% oil content, the land yields 480 lbs of oil, plus
the value of the meal. If the same low productive land
supports 1400 lbs of camelina per acre with 40% oil,
the land yields 560 lbs of oil, plus the value of the
meal. Camelina meal is currently not GRAS (Generally
Recognized as Safe) approved for livestock and dairy
production.
The current research is answering the question, “Will
camelina grow in Ohio?” Further economic questions
and system integration need to be evaluated to determine
if camelina is a realistic alternative oilseed crop
for Ohio.
For more information regarding Camelina research in
Ohio, please contact Bruce Clevenger at clevenger.10@cfaes.osu.edu
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On-Farm
Safety
Dr. Dee Jepsen, Extension Agricultural
Safety Specialist
Mr. Tim butcher, OSHA Coordinator, in the Department
of Food, Agricultural, and Biological Engineering
Ohio State University
No matter the commodity or the season, it is always
the season for safety. This time of year, agricultural
chemicals are in high use. Producers spend careful attention
in selecting the right chemical for the job, and likewise
spend a lot of hard-earned dollars purchasing and applying
these chemicals. So it is only right that they spend
a little effort respecting these agents for the harm
they can cause to human health.
Many of the ailments that affect farmers are from low-level
long-term contact with chemicals. There is increasing
evidence that incidental exposure to pesticides can
lead to certain cancers and other conditions such as
Parkinson’s Disease.
Product-handling guides are included on every chemical
label, and include the necessary Personal Protective
Equipment (PPE) needed to safely handle the agent. If
the handler is unsure about the product or wants additional
information, the manufacturer is required by law to
provide this information.
Heed the label instructions! At a minimum, chemical
resistant gloves should be used when handling the containers
and any activities involving mixing or loading into
the application equipment. There are many gloves that
fit the chemical resistant description, including latex,
vinyl, and nitrile. The specific chemical used will
determine the type of glove needed. Several of these
glove types can be found in local farm stores, hardware
stores, and sometimes at the larger grocery/department
stores. Hard to find styles can be found in online safety
catalogs, or at the agricultural chemical supplier.
Leather and cloth gloves should NEVER be worn when handling
chemicals; they absorb the product and hold it close
to the skin.
Carry enough chemical resistant gloves so they can be
changed often. Handling a steering wheel with bare hands
after touching it with chemically coated gloves is not
a good practice. Another useful tip is having disposable
wipes or hand sanitizers available to clean chemical
residue from hands and other objects. Lunch and snack
breaks are great times for using those hand sanitizers!
Besides hand protection, chemical handlers need to be
concerned about other clothing choices. The ball cap
is one of these items of concern. Just like cotton gloves,
ballcaps can absorb splashing and spraying chemicals,
and hold these agents close to the skin. Then each time
the cap is worn, and sometimes this can be for many
months thereafter, the forehead is reintroduced to that
chemical exposure.
Disposable chemical resistant overalls are perfect protection
to cover shirts and jeans. Normal work clothes have
high absorption rates, and should be properly covered
and protected from chemical exposure. It is recommended
these articles, including footwear, be removed before
entering the house. This action prevents the home environment
or unsuspecting family members from being exposed; children
are especially at higher risk for harsh chemicals. Never
hug or hold a young child while wearing chemical contaminated
clothing.
All clothing exposed to chemicals should be properly
laundered. It is recommended that these articles be
washed separately and as immediately as possible after
contamination. Use the highest possible water setting
on the machine, even with the light load. This allows
for better cleansing action and complete dilution of
the chemical.
Many producers feel they are safe from chemical exposure
if they work in cab tractors. While these cabs do provide
protection from the weather elements, they are not 100%
effective in filtering out chemical contaminants. Operating
a tractor with the windows open, or using an air conditioning
system not specifically designed to remove airborne
particulates, will not prevent the operator from coming
into contact with agricultural chemicals. Field applicators,
even if they did not handle chemicals directly, should
take proper action in protecting themselves from chemical
contamination.
Staying safe around chemicals is important. Chemicals
can be found in many forms, and have many uses on the
farm as well as in the garden. Respect the agent for
what they were designed to do, and understand that humans
are living things – just like the plants and pests
they are combating. Invisible residues can cause long-term
harm to many healthy bodies.
This article was provided by Dr. Dee Jepsen, Extension
Agricultural Safety Specialist, and Mr. Tim butcher,
OSHA Coordinator, in the Department of Food, Agricultural,
and Biological Engineering at OSU. Authors can be reached
at jepsen.4@osu.edu
or butcher.13@osu.edu.
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Great
Lakes Manure Handling Expo
Tami Combs, Extension Program Coordinator,
Environmental Management
The Ohio State University
Manure application may be an option for growers looking
for alternatives to high-priced commercial fertilizers,
and an event spearheaded by five land-grant universities
in July will cover the economics and management of manure
as a crop production resource.
The Great Lakes Manure Handling Expo will take place
July 9 at the Molly Caren Agricultural Center (home
of Farm Science Review) in London, Ohio. Admission to
the Expo is free and the gates open at 8:30 a.m. Certified
Crop Advisor and Certified Livestock Manager continuing
education credits are available for each educational
session and demonstration. The expo is sponsored by
Ohio State University Extension and the Ohio Agricultural
Research and Development Center, Michigan State University,
Purdue University, Penn State University and Cornell
University. Additional sponsors include Ohio Composting
and Manure Management and the Midwest Professional Nutrient
Applicators Association.
The theme of the Great Lakes Manure Handling Expo is
"The Economics of Recycling," and will include
commercial field demonstrations, educational demonstrations,
educational sessions, and commercial vendor displays.
Session topics participants can look forward to include:
calculating the value of manure nutrients, the importance
of accurate record-keeping, how communication among
applicator, producer and regulatory agency can improve
application and the bottom line, safety precautions
in manure application and storage, and case studies
of farmers who will share their stories about manure
management.
Educational demonstrations taking place during the event
include solid manure application, liquid manure application,
stockpiling best management practices, soil compaction,
slurry seeding and equipment safety.
Additional details about the Great Lakes Manure Handling
Expo will be available in the near future. To learn
more, log on to http://oema.osu.edu,
or contact Tami Combs at (614) 292-6625 or combs.155@osu.edu.
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Climate
Change Economics Articles
Barry Ward, Leader, Production Business
Management, OSU Extension,
Department of Agricultural, Environmental and Development
Economics, Ohio State University
In the recent edition of Choices magazine, there is
a series of articles on climate change economics. Choices
is an online peer-reviewed magazine published by the
American Agricultural Economics Associate for readers
interested in the policy and management of agriculture,
the food industry, natural resources, rural communities,
and the environment.
According to Jason Shogren, Guest Editor and Stroock
Professor of Natural Resource Conservation and Management
at the University of Wyoming, this thematic package
in Choices celebrates the International Panel on Climate
Change (IPCC) work, its Nobel prize and the significant
contributions of agricultural and resources economists
to the IPCC process and reports. These nine papers present
work which overviews the major aspects of climate change
and its implications for agriculture and natural resources
written by people who have been intimately involved
with the IPCC.
The articles can be read in full here:
http://www.choicesmagazine.org/2008-1/theme/index.htm
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Impact
of Crude Oil Prices on Corn and Soybean Production Costs
Gary Schnitkey and Anuj Gupta, Department
of Agricultural and Consumer Economics, University of
Illinois
University of Illinois Farmdoc has an excellent article
outlining the impact of rising crude oil prices on corn
and soybean production costs. The full article is available
here:
http://www.farmdoc.uiuc.edu/manage/newsletters/fefo08_10/fefo08_10.html
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Ag Manager Team Leaders: Chris Bruynis & David Marrison
Web
Page Managers: David Marrison & Andy Kleinschmidt
Information
presented above and where trade names are used, they
are supplied with the understanding that no discrimination
is intended and no endorsement by Ohio State University
Extension is implied.
Ohio
State University Extension embraces human diversity
and is committed to ensuring that all research and related
educational programs are available to clientele on a
nondiscriminatory basis without regard to race, color,
religion, sex, age, national origin, sexual orientation,
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status. This statement is in accordance with United
States Civil Rights Laws and the USDA.
Keith
L. Smith, Ph.D., Associate Vice President for Agricultural
Administration and Director, Ohio State University Extension
TDD No. 800-589-8292 ( Ohio only) or 614-292-1868
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