The Buzz

Biotech adoption soars, land prices soar, and good bye to one of the all-time great educators.

Farmers are growing biotech crops at a rapidly increasing rate, according to a recent article from the International Service for the Acquisistion of Agri-biotech Applications (ISAAA), a global entity designed to alleviate hunger and poverty throughout the world.

• During 2011, farmers planted more than 160 million hectares (nearly 400 million acres) of biotech crops in 29 countries – a 94-fold increase since 1996. Biotech crops, the agency concludes, are the fastest-adopted crop technology in recent history…
• Brazil, the ISAAA concludes, is the “engine” for biotech adoption. Author and ISAAA founder Clive James says Brazil’s fast-track approval system has created streams of technology to support growth. These include: ready adoption of proprietary biotech crops from the private sector; public/private sector partnerships and the capacity to develop “home-grown” biotech crops. “This approach,” James writes, “is highly effective for Brazil and a key lesson for other countries across the world.”…
• Here in the good ol’ USA, absentee and older landowners are finding that now is a good time to sell their land due to high demand for the resource, according to the latest Agricultural Credit Conditions survey from the Federal Reserve Bank of Kansas City. In the survey of more than 250 bankers in the Tenth District, bankers comment that, “Absentee landowners are taking advantage of high land prices and selling family land,” and that “With current prices, many older landowners are cashing out.” …
• Non-irrigated farmland in Nebraska and Kansas brought the largest annual value gains in the last year – 37.8% and 24.1%, respectively, – the fed reports. Throughout the District, bankers report higher farm income in the fourth quarter compared to last year, which is prompting many landowners to increase cash rental rates for farmland…
• Farm credit conditions also continue to improve, as farmers continue to pay down debt and decline to renew loans…
• In keeping with the farmland theme, we consulted Midwest Land Specialists, Newton, to get the results of an auction of 230 acres of high-quality Harvey County dryland on Jan. 24.  Tract one, 150 acres of level, top-quality cropland located about 7 miles southeast of Hesston, brought $3,675 per acre. It had 130 acres in wheat, with the seller retaining the wheat crop. The balance was open, with the buyer obtaining possession upon closing. Tract two, 79 acres about 10 miles southwest of Hesston, featured 60 acres in wheat; the balance was open, with the buyer obtaining possession upon closing. It also was level, high-quality cropland that brought $3,525 per acre…
• Auctioneer Vern Koch said 39 bidders were at the sale and each tract had six or seven active bidders. Koch says this is some of the better land in Harvey County…
• A big ol’ Buzz Salute to John Floros, who in August will become Dean of Kansas State University’s College of Agriculture and Director of K-State Research and Extension. Floros, a food scientist and academic leader, comes to Manhattan from Penn State University, where he is a professor and head of the department of food science. He was educated at the Agricultural University of Athens, Greece and the University of Georgia, spent several years in private industry and served on the faculty of Purdue University…
• Kudos, too, to Gary Pierzynski, who has served as interim Dean and Director for the past few years. He will return to his role as Department Head of Agronomy….
• It might seem a little strange to those of us who have used Krause equipment over the years, but the Hutchinson-based company – which was bought by Kuhn last year – will launch a new color scheme. The company now known as Kuhn Krause will paint implements built at its Reno County facility “Kuhn Red,” helping it establish a more consistent color strategy…
• Finally, we would be remiss if we didn’t acknowledge the life of longtime educator Don Good, who died Wednesday at age 90. For years, Dr. Good was the livestock judging coach, an instructor and eventually, head of the Department of Animal Science at Kansas State University…
• This writer did not have him as a teacher, but instead, a neighbor in Manhattan. Don and his lovely wife, Jane, lived in a ranch house surrounded by open area, northwest of the football stadium. In 2000, the open area became developed, and my new wife and I were lucky enough to buy a house in a cul-de-sac just three doors down…
• They were the wise owls of this little neighborhood, and I was wise to keep my mouth closed and my ears open whenever I happened to run into Don, which was always a treat. He was devoted to Jane, who had health challenges. As a newlywed, it was good to hear him say, as he tended to her needs – “When I signed up for this, I did it for the long haul.”…
• He was full of wisdom. A veteran of World War II, a collegiate athlete at Ohio State University and trend-setting animal scientist, Dr. Good molded the lives of many young men and women. He leaves a legacy in his children, grandchildren and thousands of students. Services are Saturday in Manhattan.

Trends in Kansas Wheat

It’s kind of fun to recap the most recent Kansas wheat crop, which Kansas Agricultural Statistics did last week with the 2011 Kansas Wheat County Estimate report.

The good news:

• Sumner County retains its title as the top producing county in the state, yielding 10.5 million bushels.  That’s appropriate, as Sumner County proudly calls itself the “Wheat Capital of the World.” Year after year, farmers here produce high-quality wheat, and lots of it.
• McPherson County was the second leading producer, with 8.9 million bushels; Sherman County third, 7.4 million bushels; Mitchell County fourth, 7.3 million bushels and Reno County fifth, with 6.7 million bushels.
• Miami County farmers produced an average 57.6 bushels per acre – a new record for average county yield. Greeley County had the highest average irrigated yield, at 72.7 bushels per acre. (On the downside, drought-stricken Morton County had the lowest average, at 16.3 bushels per acre).

Now, the not-so-good news:

• At a rather modest 277 million bushels, the 2011 Kansas wheat crop is symbolic of a trend in Kansas wheat production: fewer bushels, from fewer acres.
• Farmers planted 8.8 million acres in fall, 2010 for the 2011 harvest; they cut 7.9 million acres last summer. Both of these are the fewest since 1957.

In a recent report called “Trends in Kansas Wheat Production,” K-State economist Michael Langemeier reports that since 1981, wheat acreage in Kansas has declined from 13.9 million acres in 1981, to 8.8 million acres in 1981. Kansas farmers planted about 9.5 million acres last fall – but the fact is, Kansas farmers are planting fewer acres of wheat. The reason is simple: farmers believe there is more money to be made planting other crops.

Since 1874, however, Kansas has been this nation’s leading wheat producer. Our climate is perfect for growing Hard Red and Hard White winter wheat; our farmers are excellent producers of the crop (which is the world’s most consumed grain, by the way) and our state has built a wonderful wheat farming infrastructure to support all this production.

Therefore, the Kansas Wheat Commission, which collects a penny-and-a-half per bushel of wheat produced in Kansas, believes the trend can be reversed. More than 25% of the funds collected are invested in wheat research (improved varieties, new traits, improved functionality of wheat) to improve farmer profitability. These are important projects, and with state and federal investment in wheat research declining, it is important that Kansas farmers step up to the plate.

Even more important is that Kansas wheat farmers are investing in the new Kansas Wheat Innovation Center in Manhattan. This new complex, located near Bill Snyder Family Stadium, will be a hub of wheat research, featuring greenhouses and state-of-the-art laboratory space in which dramatic gains in wheat yield and traits will occur.

Kansas has long been known as the Nation’s Breadbasket. When the KWIC is completed by Jan., 2013 –  we feel confident that Kansas will be the Breadbasket of the World.

The Buzz

Football, farming and feeding the world’s hungry.

If I had to guess, I’d say most of the professional football fans in Kansas cheer for either the Kansas City Chiefs, or the Denver Broncos. In the last few years, however, another team – the Green Bay Packers – has snuck into the hearts of many Kansans. The Packers symbolize hard work. Blue collar. Midwest. They’re also the team for which Jordy Nelson plays.

• Nelson is a former Kansas State University walk-on defensive back, who became an All-American wide receiver. What endears him to many is his rural upbringing. He grew up on a farm near Leonardville, and continues to help his father, brother and grandfather when he’s not busy scoring touchdowns. This article from the Milwaukee Journal-Sentinel describes Nelson’s upbringing and work ethic…
• Incidentally, while the NFL was in a lockout last summer, Jordy was back home on the farm, driving the combine during wheat harvest. Pretty cool, in our book…
• We in agriculture often lament that the mainstream media doesn’t really “get” agriculture, or “get” farmers. But Judy Woodruff of PBS has a positive take on the industry, based on a conversation she had with USDA Secretary Tom Vilsack this week…
• From our perspective, the highlight is the U.S. agriculture trade surplus, which supports more than a million American jobs. Woodruff mentions this in passing, focusing more on the agency’s home loan and nutrition programs. Still, it’s important to acknowledge the diversity and wide reach of the USDA…
• Kansas farmers have been quick to adopt technologies that help us improve efficiency, productivity and profitability. Whether Roundup Ready soybeans, Bt corn, or a host of other pest- and herbicide-resistant crops, the bugaboo has always been that these are “genetically modified.” Right or wrong, a vocal segment of the world population is against “genetic modification.”…
• Bill Gates, however, is not one of them. The founder of Microsoft, whose Gates Foundation is one of the world’s most generous and respected philanthropies, is an advocate of genetically modified crops, and he believes they are the key to solving world hunger…
• Naturally, some environmental groups are vehemently opposed to Gates’ objective. Chances are the members of Greenpeace don’t go to bed hungry at night…
• Kansas Ag Statistics has released its list of the most popular wheat varieties in the state. TAM 111, from the Texas Ag Experiment Station in 2002, leads the list, having been planted on nearly 13% of the state’s acres last fall. K-State’s Everest variety was planted on 8% of the acres; Armour, from WestBred, is on 7.5%…
• We talked about some astronomical land prices in northeast Kansas a few weeks ago in The Buzz. A sale of Clay County land on Jan. 30 produced more whopper prices…77 acres of Republican River Valley bottomland, irrigated by both flood and center pivot, sold for $1.2 million at auction – $12,000 per acre. At the same sale, dryland tracts of 143 acres sold for $720,000 ($5,050 per tillable acre) and 177 acres sold for $1 million ($5,656 per tillable acre)…
• Auctioneer Harold Mugler says it boils down to competition. “Land doesn’t come up for sale in the Republican River Valley very often, and when it does, it’s going to sell very well.” Mugler says this Valley has the richest soils in the state.

‘The Twelve Habits of Successful Farmers’

When I was a kid growing up on the farm,  the best way to keep up on the latest and greatest in farm innovations was through the farm magazines. We received a bunch of ‘em; Successful Farming, Farm Journal, Kansas Farmer and High Plains Journal came Saturdays; the mailman delivered Grass and Grain on Tuesday. These publications were so interesting to a young farm boy.

Successful Farming stood out. It featured really good writing and it focused more on wheat than the other monthlies. I loved its segments on machinery and shop projects. And best of all, its editor, Loren Kruse, went to school at K-State and bled purple.

Loren Kruse, editor, Successful Farming

Thus, when I learned Mr. Kruse was to speak at the annual Kansas Soybean Expo last month, I wanted to hear him. There are a lot of good folks in agriculture, and Loren is one of the best (as evidence, he donated his speaker’s fee to the Kansas 4-H Foundation).

His topic was “The 12 Habits of Successful Farmers.” I have to admit, I have never thought of how I define success, and I bet each of the 100 or so people in attendance that day probably hadn’t given it much thought, either.

In sports, success is often defined by winning or losing. In farming, it’s not as simple. It may be accumulating acreage, or having new equipment. Perhaps retiring debt-free, or passing an operation to another generation.

According to Mr. Kruse, it is all of those – and yet, none of those. “Success,” he offered in his address, “is simply doing the best you can, with what you’ve got.”  

Those are pretty good words to live by.

But he expanded on those, by offering several other nuggets of wisdom. Based on more than three decades of work at the Successful Farming, here are the attributes of the best of this nation’s farmers.  

Successful Farmers…

1. …use decimal points. Numbers, he says, offer greater clarity, confidence and better decision making.
2. …honestly know themselves. They are focused and disciplined on controlling costs, yet seek and pay for expertise in areas that are not their strengths.
3. …are open-minded and flexible.
4. …accept the reality that learning takes forever. “They take action to set aside, and spend time with people who challenge their thinking,” he says.
5. …take a long, tall view. They learn, change, grow – and repeat again.
6. …make successful mistakes. The great basketball player Michael Jordan said, “I’ve never been afraid to fail,” Kruse recalls. Even when an error is made, successful farmers strive to make something good of the error.
7. … deliberately seek and build friendships away from home. Making and cultivating friendships with folks who farm differently, are in a different line of work or may live in another part of the world, gives perspective, balance and a different world view, Kruse says.
8. …remember who threw them the ball. Citing K-State quarterback Collin Klein as an example, “he can’t excel without someone hiking him the ball,” Kruse explains. Folks who are generous with time or treasure experience great happiness by “remembering who gave them the ball.”
9. … have fun! “Promise your family you will take days off,” he advises. “You will be a better family man and leader.”
10. … grow by storm. There is little difference between problems and opportunity. Hold onto your values, but be willing to change.
11. … choose to be really good at what they do.
12. … brand themselves with a good reputation. “Your name is your reputation,” he advises. “Be known as an encourager. Positive thoughts and achievements are needed in your community.”

Pretty good words of advice from one of the finer gentleman you’d ever meet.

The Buzz

Paging Dr. Borlaug, Extreme Heat in Wheat and Enjoy a Good Steak in the Little Apple

In this reporter’s nearly 20-year career, I’ve met hundreds of farmers, and leaders of global companies. I’ve interviewed secretaries of agriculture and USDA officials; heard George Bush speak after he adopted a dog and shook hands with Al Gore before he invented the Internet. But one thing I never did – and really wanted to – was meet Norman Borlaug. The Iowa-born, Minnesota-educated scientist saved an estimated 1 billion people from starving. His work developing wheat varieties adapted to Mexico, Central America and Asia helped eradicate hunger, and earned him the Nobel Peace Prize.

• A couple of things that struck me about Dr. Borlaug. One, his parents were wheat farmers when he was a youngster, and the family were often without enough food. Crops were meager and wheat production was not possible after rust repeatedly destroyed the plants. Hunger, Dr. Borlaug says in the book, makes people do things they normally would not do. During his college years and in his early work post-college, he was often either hungry himself or surrounded by folks who were malnourished…
• Second, Dr. Borlaug was doggedly persistent in his commitment. Obstacle after obstacle (sometimes humorous, sometimes tragic and often political) beset his work developing semi-dwarf wheat varieties in Mexico. By the time it was all said and done, he succeeded, despite being told numerous times that he would not…
• One wonders how Dr. Borlaug would tackle the challenge facing the “Breadbasket of India,” the Ganges plain of northern India, where Stanford scientist David Lobell indicates extreme warm temperatures are reducing wheat yields. Most wheat varieties are “cool season” varieties and quit photosynthesising when nighttime temperatures exceed 34 degrees Celsius (93.2 degrees Farenheit), according to an article in NewScientist…
• The article infers that average annual temperatures in the wheat growing region of India are increasing…
• Two-thirds of the wheat in poor countries and 23% in rich countries – or about half the world’s production – is at risk from warming. Yet, global yields need to rise by 50% in the next 40 years to feed a growing population. Wheat researchers at Mexico’s CIMMYT are searching for answers, but it will take dramatic genetic changes, which take time to develop…
• Chances are good that if you were to come visit the friendly folks at Kansas Wheat for a lunch meeting, we would dine at the Little Apple Brewing Company, a locally-owned steak house in Manhattan. Locals consider the “Little Apple” to be a fine place to eat and enjoy a tasty brew, if you’re so inclined. Apparently, the folks at the Beef Checkoff Program agree with our assessment. This week, the group presented the Little Apple Brewing Company its “2011 National Foodservice Beef Backer Award, Independent Operator”…
• A big ol’ Buzz Salute to co-owners Kelly and Russ Loub and Lori Fink, who receive a trophy and will be given unique marketing access throughout 2012 to promote the Little Apple Brewing Company as a nationally acclaimed beef backer…
• Congratulations to Great Plains Mfg., Salina, which inaugurated its brand-new Conference Center in Salina with dealer meetings this week. According to the Salina Journal, the Center - in the works for several years – features two stories, 15,000 square feet and is designed to teach dealers, salesmen, technicians, parts and repair people the ins and outs of Great Plains products…
• In the Journal story, Tom Evans, vice president of sales for the Great Plains division of the company, says simply: “It’s awesome.”

Wheat Grower Groups Call for Open Trade Between U.S., Canada

Most wheat growers should know by now that in December, the Canadian Wheat Board was forced to disband the Canadian Parliament. Thus, the CWB will lose its grain marketing monopoly beginning Aug. 1. This should allow western Canadian farmers to sell wheat and barley in the open market.

The U.S. Wheat Associates and National Association of Wheat Growers each passed a resolution on Jan. 29 that calls for an open border with Canada that provides reciprocal bilateral wheat trade. The agencies issued a dual press release on Jan. 31 to note the event.

Gordon Stoner, a Montana farmer who serves as the head of the U.S. Wheat/NAWG Joint International Trade Policy, says the CWB only allowed wheat to flow from Canada to the U.S. The abolition of the CWB could allow some U.S. wheat farmers to sell wheat to cash markets in Canada.

“Our wheat farmers are ready to accept that outcome as long as we similarly have a fair opportunity to deliver into the Canadian handling system. This resolution gives NAWG and USW the authority to work with farmers, the grain trade and government agencies here and in Canada to give U.S. farmers reciprocal access to the Canadian market. We seek an open border – in both directions,” Stoner said.

Stoner said some key issues must be resolved before U.S. farmers could sell their wheat to cash markets in Canada, such as Canada’s narrow wheat class variety eligibility lists that do not allow most U.S. varieties to be marketed in the country as top grade milling wheat.

“Ultimately, open trade across the border will be good for both Canadian and U.S. wheat farmers by adding efficiency and allowing Canadian and U.S. wheat handlers, users and growers to compete on the basis of quality and location,” Stoner said. “At the same time, with the CWB monopoly gone, the international market that determines our prices will become more transparent, fair and efficient.”

For an audio report from Stoner on happenings at the NAWG/USW Joint International Trade Policy Committee meeting Jan. 28, please visit http://www.wheatworld.org/wp-content/uploads/audio-stoner-report-jitpc-20120131.mp3.

The Buzz

The cost of land, the cost of drought and wheat as an educational tool.

For farmers and ranchers, it’s all about land. To this writer, it seems that most producers are always looking for it. Cropland, pastureland, CRP … it doesn’t really matter. If there is land available for sale, it’s usually going to bring top dollar.

Prices for top-quality farmland continue to soar.

• Tim Unruh, Salina Journal reporter, does a great job of illustrating escalating land prices in his article, “Land Rush.” In today’s market, Kansas cropland is fetching from $2,000 to $4,000 per acre, Unruh reports. Are these prices sustainable? That’s anyone’s guess. Crop yields and commodity prices staying at higher than historical averages are prompting farmers to expand, writes Unruh, who adds as sources real estate and economic experts. And as for land, well, they’re not making any more of it…
• Less than a week after the Salina Journal article, a 75-acre tract of good quality farmland between Highland and Hiawatha in Brown County sold for $800,000, or $10,256 per acre. The tract featured 66 acres of Class II soils, and three acres of bottomland. Each of the last three years, corn yields topped 185 bushel per acre, according to locals…
• To our knowledge, that’s the highest price per acre paid for Kansas farmland. Incidentally, that same day, a 155 acre tract about 15 miles west of the aforementioned sale was to be sold at auction but didn’t, as it did not reach a minimum bid of about $4,500 per acre. Sources tell us that the 155-acre tract featured several acres of waste and woods and simply aren’t as productive. Goes to show that farmers still can be choosy about where they invest in land…
• From one of our favorite ag reporters is this story on the cost of last year’s drought to the state of Kansas. The pricetag? More than $1 billion, according to the Hutch News. That’s a record amount of insurance indemnity payouts, according to reporter Amy Bickel, and it’s not over. Sources she talked to say claims are still being processed, and much of southwest Kansas still in a drought, with good chances of that situation continuing…
• Is it possible that Russia could impose another ban on wheat exports from that country? Reuters implies that not only is it possible, but likely.
• The country’s government says Russia should not export more than 23-25 million tons of grain during the crop year. As such, it could impose protective duties from April on, when exports are likely to hit that level. A European trader says that American wheat’s competitiveness in the European market could increase significantly if Russia does indeed impose the protective duties…
• Here at Kansas Wheat, one of our stated goals is education and outreach. As the state nears its 151st Birthday, what better way to celebrate than with healthy, wholesome homegrown bread? The Lyon County Extension office recently used a Kansas Wheat Commission-developed bread recipe in a presentation to third graders, which readily illustrates how science, math, economics and physical education. A contributor to the Emporia Gazette wrote about the demonstration, and how important it is for Kansans to learn more about the agriculture industry that makes our state great…
• As a matter of fact, Cowley County Extension is hosting a 4-H School Enrichment program called “Wheat Science” today (Friday) at the Extension office in Winfield. The program is designed to help local school kids celebrate Kansas’ birthday, first by learning about growth, harvest and milling of wheat; then by making tortillas or bread…
• We salute ADM mills, Arkansas City, which donated the flour for the program – the purpose of which is to encourage youth to eat more whole grain foods, according to the Winfield Daily Courier.