CRP takeout pilot project in the works

by Russ Evans, PNDSA

The reality that many long term CRP contracts are set to expire over the next five years, and may not be eligible for renewal, is starting raise some concern. Since these contracts were signed exit strategies have changed. We are notcertain what the thinking was but it would seem that upon contract expiry, it was expected this land would be brought back into production using the same type of production system that was being used when it was contracted. At the time this land was considered highly erodible and, generally speaking, most of it was being managed in an intensive tillage farming system.

As things should be, we have advanced somewhat and better systems have developed. Using direct seed methods many of these CRP acres can be brought into production in such a way that some of the benefits achieved over the past 20 years of perennial grass cover, are not immediately lost to the plow. In fact, in many of the dryer regions, where much of the CRP land is found, experienced direct seeders are saying that retaining the CRP residue with direct seed is like a five to ten year advantage to taking over intensively tilled land.

Umatilla Soil and Water Conservation Incentive Programs

The following are a couple of great program ideas other Conservation Districts could pursue to help accelerate the adoption of Direct Seed Cropping Systems and the use of Precision Agriculture Technologies.

The Umatilla Soil and Water Conservation District (SWCD) is taking fall 2009 applications for the Precision Ag Incentive Program! If you’re planting a fall 2009 crop and plan on using a variable rate fertilizer applicator or you would like to try this technology, you are eligible for the incentive program. The program aims at increasing the accessibility of intensive nutrient management tools to agricultural producers in the Umatilla Basin and provides a cost-share of $20 per acre for up to 200 acres per producer. 

The Umatilla County SWCD is also accepting applications for the Wildhorse Basin Direct Seed Incentive Program.  If you farm in the Wildhorse watershed and would like to try direct seeding or convert conventional tillage acres to direct seeding, then this is the program for you!  The cost-share is $10 per acre up to 1,000 acres per producer! 

If you would like to sign up for this incredible opportunity or would like to find out how to set up a program like this for a watershed in your area contact:

Heidi Hartman
Natural Resource Specialist
Umatilla County SWCD
200 SE Hailey Avenue Suite 108
Pendleton, OR 97801
Ph: 541-276-8131

Direct Seed Summer Tours - What a great way to spend the summer!
PNDSA had the opportunity to host a portion of several tours this summer. The Spokane/Clear Water Tour and the Colfax Palouse Tours were well attended with new faces and interest in direct seeding throughout the region. Also a group of Kansas Wheat Growers passed through the Palouse region spending the first afternoon at Wittman Farms southeast of Lewiston and the evening at Camp Wittman where PNDSA provided the cocktails while Dick and his family delivered an exceptional BBQ and social atmosphere. The next day we toured the farms of Russ Zenner and John Aeschliman before sending the bus to the top of Steptoe Butte and onto their departure in Spokane.

Delivering the Pacific Northwest Direct Seed Conference.
Members take advantage of reduced conference fees.

Peer support for growers developing
their direct seed cropping systems.

Input to research throughout the Pacific Northwest.

Representation to government on policy and program
development that effect the environment and direct seed growers.

Your source for the latest information and research on
direct seed cropping systems.

There are many ways to contribute:

PNDSA Member or Associate Member
$100 per year
PNDSA Lifetime Member $1500
1 time contribution
PNDSA Supporter
($250 - $2,499 per year)
PNDSA Partner
(Starting at $2,500 per year)
PNDSA Board Member
(4 meetings per year)

More information at
www.directseed.org/membership.html

Click Here for PNDSA Membership Form.pdf

PNDSA is funded by individual
and corporate membership.

On the Rise:
Global population growth continues to put pressure on Ag Producers

According to the United Nations, our big world is about to get much bigger. While the world’s population is rising at what appears to be a modest rate – just 1% per year – that adds up to an additional 77 million people every year. If you do the math, you’ll see that by 2020, just around the corner, the world will be home to an additional 800 million. The population takeoff means that increasing demands on worldwide growers is inevitable. There are already many global links to US agriculture. While more than 80% of the US supply of strawberries is grown in California, a whopping 12% of them are now exported and gracing tables as far away as Japan. Pecans, once unknown in China, are now being imported from New Mexico – in fact, accounting for 10% of New Mexico’s entire pecan production just five years after being introduced to the Chinese market!

But more than novelty foods and premium fruit, the larger world population will drive demand for grains and oilseeds. Because most of the coming population growth will occur in grain deficit areas, including Africa and the less developed areas of Asia, a bigger question looms: with all of these mouths to feed, who will supply the grain needed? High yield countries like the US. That, according to Rich Pottroff, Chief Economist at Doane Agricultural Services is an advantage to US growers, and an advantage that is closing in fast. Wheat grown outside of Boise may well end up in bread baked in Botswana.

The distribution of wealth in the world is also changing. More and more people are entering the middle class, and that increase in money is usually felt first in food consumption. Per capita consumption of both meats and grains are on the rise across the globe. “In just 15 years, we have seen about one billion people rise out of poverty to the middle class. That’s never happened in 6,000 years of recorded history! This presents an entirely new level of demand, in addition to population growth itself,” explained Dr. Lowell Catlett, Dean of the College of Agricultural, Consumer and Environmental Sciences at New Mexico State University, and an authority on agricultural economics. “This staggering growth brings both tremendous pressure and tremendous opportunities for American farmers.”

Both of these key drivers are changing the game. Population growth alone is expected to raise grain demand by 292 million metric tons (MMt) by 2020. If you factor in both population growth and the fact that people are consuming at a higher rate, that increase in demand could be as much as 474 MMt by 2020, according to Pottorff. “With that increase in demand for grain and oilseeds, we will need 729 million hectare (Mha) of grain by 2020. In 2008, that number was 694 million Mha. That’s a large increase – 86 million acres,” stated Pottorff. “While we know that some expansion will come from Latin America, especially Brazil and Argentina, there are infrastructure problems that limit development there. Since most of the population growth will be in areas where land has much lower yields, exporting countries like the US will have to step up production to meet the demand of the global grain trade.”

While most growers are aware of the coming demand increases, and the vital role exports will play, they are not so aware of how best to prepare themselves to benefit. Dr. Catlett believes putting a smart strategy into place now is crucial. “This is the time to formulate and start to execute your strategy,” he stressed. “First, growers have to think outside of what they are used to. We have to think about these export markets, and grow what they want or like to eat, not just surplus. Those growers who are thinking this through and preparing to grow what will export best to these markets will be the big winners.”

Selling to far away markets may be easier than most growers think. Local Departments of Agriculture in your state are excellent places to start making the connections necessary to begin. They can advise growers on where market potential exists overseas, and where that potential is likely to grow. If an operation is large enough, they can also contract directly with foreign governments or importers. For smaller growers, commodity groups and trade associations can provide powerful information, insight and opportunities.

Agricultural productivity will be key in addressing the coming increase in demand. Director General of the International Food Policy Research Institute, Joachim von Braun, believes this factor must be addressed sooner rather than later. “Agricultural productivity growth is only one to two percent a year. This is too low to meet population growth and increased demand,” he stated. He went on to add that enhancing growth in productivity will come from investments in farm infrastructure that will promote higher yields.

Continued from Page 4 (from Valley Pivot Point Special Edition 2009)

Capitalizing on the Critical Window
Opportunities in agriculture, as the economic uptick unfolds, are similar to a harvest.

There’s a critical window of time in which to reap the rewards. All producers know that it’s wise to be prepared before the harvest window opens – to ensure all your machinery is in good working order, that you have enough equipment and manpower to do the job and that you won’t have any unexpected issues that could affect your ability to bring in your harvest by days or weeks. The same applies to preparing to reap the benefits of the economic turnaround. Here are five things every grower can do to be ready.

1. Focus on the upside, prepare for success.
The serious recession in farming in the late 1970s and early 1980s is something most farmers would rather not recall. But this crisis in agriculture presented tremendous opportunities for those who were poised and ready. Dr. Lowell Catlett, economist at New Mexico State University and a leading agricultural economist, remembers it well and believes lessons learned in that difficult economic period are useful for farmers today. “Those who were prudent about buying up farmland during that bust were sitting very well in the mid to late 1980s and early 1990s when the recession was over. They were strategic in their investment, focused on the upside, had foresight and were prepared. At that time, finance in agriculture also went through a watershed. Those in agricultural credit who reformulated loans and loan policies did very well. Again, these were people who looked toward the future, believed in recovery and put themselves in a position to take advantage of the opportunities that later presented themselves.”

2. Heed the signs.
The coming growth in global population will require unprecedented productivity and high yields. Because producers can’t meet increased demand overnight, preparing the operation to meet this increased demand is smart. This is where some producers came out on top and profited just after past economic down cycles. Invest in yield-enhancing technology and machinery. Don’t put off purchases so long that you may get in a bind.

3. Focus on improving efficiency.
Perhaps one of the best things about the economic issues and price increases on farm inputs growers have recently experienced is that they’ve forced us to see where we can be more efficient. How can we reduce our fuel consumption? How can we reduce waste? How can we ensure we are using resources, like water, as efficiently as possible?

4. Pay attention to marketing opportunities.
Connect with the state Department of Agriculture to learn about export markets or to commodities groups to explore new local opportunities. This is the time to get out there, ask questions and do your homework.

5. Be financially savvy.
Right now, excellent financing opportunities and interest rates are available through local banks, regional banks and farm credit service groups. Pay attention to managing risk on the cost side. Bill Tierney, General Manager of Doane Advisory Services, believes a few wise financial decisions now will pay off quickly. “Crop producers currently have access to financing at some of the lowest interest rates in recent history. Those producers that have the ability to refinance debt may want to consider locking in these low rates. Fertilizer prices have fallen sharply and producers may want to consider locking in a price on some of the crop nutrients that they will be using for the 2010 crops.”