April/May 2009 - National Farmers

April/May 2009
A publication of the National Farmers Organization
Delivers Profit
www.nfo.org
◆
e-mail: [email protected]
◆
800-247-2110
National Farmers favors NDM move,
CWT’s new round of herd buyouts
Two factors favoring
America’s dairy producing
familes were announced in
late March and early April.
The Cooperatives Working
Together new herd buyout
plan, and Ag Secretary Tom
Vilsack’s move to release
200 million pounds of nonfat dry milk powder to use
in domestic feeding programs were welcome news
to dairy producer members
of National Farmers.
CWT’s new buyout plan
In light of the perilous
financial plight affecting
America’s dairy farmers,
Cooperatives Working Together announced April 1
that it will conduct its latest herd retirement round.
Bids are being accepted through
In this Edition
◆ D.C. Developments
H.R. 977,
Animal ID
3
◆ Chuck Walters
Final thoughts
about organization
4
◆ Farm Fair
Higher prices
needed
4
◆ Leader Update
Crosby, Ennis
& Kleaving
8
National Farmers Mission Statement:
To provide greater opportunities through
collective bargaining systems, to obtain
a fair price from the marketplace for the
commodities produced by member farmers
and ranchers.
First-Rate Farm Financing
800.824.4448
bids. However, since the value
May 1.
“We believe this new buyout
of cows and heifers has dropped
round will certainly help milk
dramatically, the price level of bids
prices, which are much too low
accepted will be much lower than
for producers to sustain,” said
in recent years.
National Farmers Dairy Director
As has been the case in recent
Brad Rach.
herd retirement
“We all recogrounds, Kozak
National Farmers also
nize that 2009 is
said CWT has
endorses re-impleshaping up to be
no set target
mentation of the onceamong the toughfor the volume
active Dairy Export
est years on record
of milk or the
Incentive Program
for dairy farmers,
number of cows
(DEIP) to help increase
but CWT will help
to be removed.
domestic dairy prodshorten the price
This is the
uct sales abroad.
plunge farmers are
seventh herd refacing, and speed
the recovery,” said
President and CEO Jerry Kozak,
of NMPF, which manages CWT.
Kozak said given the dramatic
downturn in dairy economics
in the past six months, CWT is
anticipating a large number of
tirement round
since CWT
began operations in the summer of
2003.
Vilsack’s move applauded
To help the hungry and stimu-
Continued on page 3
Former organization
publications editor,
Acres founder passes
New robotic milkers deliver more
milk per cow, reduce labor costs
The founder of Acres U.S.A., and
former National Farmers publication
editor, Charles Walters passed away
Jan. 14.
He was an early proponent of
organic farming and food systems,
and authored thousands of articles on
economics and dozens of books on
agronomy and economics.
In the March Acres edition, in
one of his last articles he writes about
the history of National Farmers and
the impact the organization had on
America’s farmers and ranchers.
He believed that one of the
organization’s new goals of providing
hormone-free and chemical-free food
to consumers is noteworthy. And that
a food supply free of GMO crops
and cloned animals is one safer for
consumers.
He wrote that the NFO of
yesterday is largely gone – and wished
the new National Farmers find its first
magnitude star.
Acres USA is the only national
magazine that offers a comprehensive
guide to sustainable agriculture.
See Walters reprint on page 4
Doug and Tina Suhr’s robotic milkers
somatic cell counts under 200,000 for
might sound something like a farmthe last seven years straight. (That means
friendly “Jetson’s” episode, but to the
there’s a lot of milk, and it’s really good.)
family producers, the technology means
Still, Doug explained, the health of
no more worry about hired help.
the teat ends is “a lot better,” the cows
On
are calmer
Zumbro Ridge
and proFarms, in
duction has
southeastern
risen 14 lbs.
Minnesota,
per cow
the couple
per day.
purchased two
“The udder
robotic milkhealth is
ers, with each
better, beunit capable
cause cows
of handling
are getting
about 60
milked
cows.
more often,
“I looked
and there
The Lely Astronaut A3 Robotic Milking System at
into it due to
are not
a lack of qual- work on Doug and Tina Suhr’s Zumbro Ridge Farms
as many
ity hired help,” he said. “We went through
incidents of mastitis and stuff like that,”
12 guys in six years. The longest lasted
he said
two years, the shortest, two days.”
The manufacturer advertises a posThe producers have discovered many
sible production increase of 15 percent to
production benefits, even on this farm
20 percent. And on Zumbro Ridge Farms,
with notable quality. They boast a rolling
their cows go in to get milked 2.7 – 3.2
herd average of about 20,000 lbs., and
Continued on page 5
NFO Officers and
Board of Directors
President — Paul Olson, WI
Vice President — Ron Mattos, CA
Treasurer — Michael Miller, IA
Secretary — Dave Reed, IA
Board Members
Frank Endres – Corning, CA
David Lusk – Arbon, ID
Ron Schultz – Stewardson, IL
Steve Stremlau – Mendota, IL
Bernard Rudecki – Walkerton, IN
Gilbert Kleaving – Tell City, IN
Rhonda Bakken – Decorah, IA
Paul Riniker – Greeley, IA
Harold Walker – Mayetta, KS
Carl Wahlmeier – Jennings, KS
Aubin Mattingly – Rineyville, KY
George Field – Auburn, ME
Wayne Prichard – Burlington, MI
Gordon Turner – Hemlock, MI
Ron Christensen – Battle Lake, MN
Leander Wagner – Elko, MN
Joseph Neaton – Watertown, MN
Ken Schlottach – Owensville, MO
Mark Manford – Holden, MO
Wayne Forder – Highwood, MT
Norman Stokebrand – DeWitt, NE
Carroll Wade – Jasper, NY
Daniel Casler – Little Falls, NY
Calvin Shockman – La Moure, ND
Pat Lampert – New Bremen, OH
Chester Stoll – Marshallville, OH
Kaleb Wolfe – Centre Hall, PA
Jeff Rose – Sochranton, PA
James Brown – Dell Rapids, SD
Arlen Hanson – Columbia, SD
Raymond Tardif – St. Albans, VT
Ileen Moos – Chetek, WI
Donald Hamm – Fredonia, WI
Don Mielke – Menasha, WI
National Farmers est. 1955
Collective Bargaining
for Agriculture
THE REPORTER
The Voice of family farmers
and ranchers
The NFO Reporter is published six times
a year by National Farmers
Organization, 528 Billy Sunday Road
Ames, Iowa 50010-2000
(515)292-2000
e-mail: [email protected]
Internet: http://nfo.org
Non-profit third class postage paid at
Princeton, Minn.
Postmaster: Send address changes,
along with mailing labels, to: The NFO
Reporter, 528 Billy Sunday Road, Ames,
Iowa 50010-2000.
Subscription price for members, $1 per
year; for non-members, $5 per year.
Vice President’sMessage
By Ron Mattos
This edition of the Reporter comes during a season when
I am very concerned because our farmers are experiencing extremely difficult times.
We question how and why the industry that supplies food
and fiber for its people, doesn’t even return a price covering
input costs. The result is that there are no profits available to
contribute to local communities, states and the national economy.
Yes, this is not only an agricultural problem, but a national and
worldwide economic meltdown.
We live in a culture today with wants and needs that go
beyond its means. This culture demands cheaper goods and
services, but they only comes at the cost of those who cannot defend themselves or the
knowledge to resist the powerful forces that dictate their demands.
This only perpetuates the decay that feeds the social and business morality that has
reached rock bottom levels. People must stand together and say, “Enough is enough of this
insanity, and it must stop.”
NFO has stood for fairness and justice
Farmers have been
in pricing farm commodities. This pringiven the responsibilciple brings economic common sense when
ity of being stewards
enough farmers are committed to put their
of the land to produce
production on the line through collective
the food and fiber
bargaining.
that feeds every man,
When others continue to feed the old
woman and child in
system, this keeps farm prices at depressed
this nation. All that is
levels, which causes farmers to be driven off
needed is a fair price
the land and adds to our nation’s economic
that returns a profit.
crisis. Isn’t it ironic that a nation with the
ability to produce an abundance of good
and goods, finds it self in such a state of
despair?
The word cause makes many people react differently. Some see it positively, some
negatively. I say, ‘Yes, we have a cause that brings truth, fairness and justice that includes
cost of production plus a reasonable profit.’
Farmers who are providing the food and fiber that feed this nation, and who help
feed the world, have earned dignity and respect. Our cause is about doing the right things
for the right reason. Together, no obstacle large or small can stop us from obtaining our
goals.
When one feels passionate about something, one very often gives to a degree that
appears to exceed common thinking and expectation. Let us call upon President Obama
and Congressional leaders to adopt a policy change from misused power and greed and
endorse a policy of fairness and justice for all.
Farmers have been given the responsibility of being stewards of the land to produce
the food and fiber that feeds every man, woman and child in this nation. All that is needed
is a fair price that returns a profit. To this end, we are committed at the National Farmers
Organization to give the leadership and direction to obtain these goals. We offer our help
and prayers that this common good may become reality for all.
Oh God of Love
I place all my trust in you
I fear all things
From my own weakness
But I hope for all things from
Your goodness
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2
Former Livestock Director
passes
A longtime National Farmers
National Board member and employee, Dwayne H. Wind, 75, Woodhull, Ill., died March 20.
Through the years, he worked
as a field representative and was
director of the Livestock Division
at National Farmers. He was also a
veteran of the United States Army.
Wind was born Sept. 29, 1933.
He was a 1951 graduate of AlWood
High School in Illinois, and married
his wife, Bonita (Snapp), on June 29,
1958.
Minnesota’s Nobert and Vivian
Rohr pass
Norbert Rohr, and Vivian Rohr,
Bluffton, Minn., members of National Farmers, passed away on Feb.
5, and Feb. 26, respectively. They
are the parents of National Farmers National Director Mark Rohr,
Bluffton, Minn.
Norbert Henry Rohr was born
July 16, 1922, in McHugh Township
near Detroit Lakes, Minn. Vivian
(Palmer) Rohr was born February
20, 1925, in Frazee, Minn.
Vivian and Norbert married
on October 16, 1945. In addition
to farming, Norbert hauled cattle
and livestock for area farmers for 30
years.
Vivian handled publicity for the
Ottertail County National Farmers
Organization, and the couple participated actively in National Farmers at
the county and state level while they
farmed, and during their retirement
years.
Pioneer member, Oren Lee
Staley nominator dies
A key National Farmers Organization developer, Merle Elwin
Hansen, 89, Newman Grove, Neb.,
died Friday, March 27, 2009.
Hansen was born Nov. 26, 1919,
on his family’s farm. On Feb. 18,
1950, he married Lucinda Kramer,
and they had seven children.
After graduating from Newman Grove High School in 1938,
Merle attended a business college
in Missouri until he enlisted in the
U.S. Navy to serve in World War II,
receiving many honors.
In the 1950s and 1960s,
Hansen was a key National Farmers Organization planner, and he
nominated Oren Lee Staley to head
the organization at their national
convention in Des Moines, Iowa,
in 1956. Hansen organized several
counties for National Farmers.
Vilsack wants final Animal ID
formula to gain full acceptance
USDA’s new
“After five years of throwing over $100 million at
secretary, Tom
a voluntary system, we are still in pretty much the same
Vilsack, is reported
place,” said Ag Committee Chairman Collin C. Peterson,
to want a National
D-Minn.. “Even worse, many of the crucial aspects of the
Animal Identificaprogram show little promise of ever being substantially
tion System that
implemented. Agency staff have told us that the program
will be embraced
as currently structured would never be effective in providrather than avoiding the country with a reliable trace-back system. The
ed – as reported in
stakeholders out there need to get together and resolve
Feedstuffs. And at
their differences, a mandatory animal ID system is crucial
the end of March,
in order to avoid the economic consequences of a major
Reuters reported Vilsack also said he’s interested in a
animal disease outbreak.”
system that works, voluntary or mandatory.
And on April 3, the cattle producers’ group R-CALF
Questioned by Rosa DeLauro, D-Conn., chair of
USA weighed in, presenting Vilsack with an eight-point
the House appropriations subcommittee on
proposed alternative. It would
agriculture, Vilsack clarified that if there
prohibit importing livestock
“...a mandatory animal
is a mandatory system he wants privacy,
from countries with animal
ID system is crucial in
confidentiality concerns addressed. He
diseases that transfer to huorder to avoid the ecoalso wanted the differences between raising
mans, including a request for
nomic consequences of
livestock on public land versus private land
an immediate ban on importa major animal disease
to be accounted for.
ing live cattle from Canada,
outbreak.”
He emphasized that he doesn’t want
which the groups says have a
— Collin Peterson
a system mandated, only to see people
greater risk for BSE.
spending time to figure out ways around it.
The R-CALF proposal
Right now, 35 percent of food and animal
calls for branding imported
premises are registered. Vilsack has also said he wants
livestock with an identifying mark of origin, and requiring
input from opponents to national animal identification.
imported livestock to meet the health and safety standards
But USDA’s House Agriculture Committee Chair
of those established for the Untied States. And it would
Collin Peterson wants a mandatory system, sharing his
require TB testing of cattle imported from Mexico, with
viewpoint after a subcommittee review of NAIS March 11.
quarantine until slaughter. See r-calfusa.com for details.
Washington
Monitor
Wide support for bill to bring common sense
reform of derivatives markets, ag contracting
Unregulated derivatives left deep gouges in the lawn of
Warren Buffett, of Berkshire Hathaway, Omaha, Neb.,
America’s economy – contributing to the financial crisis the
one of the world’s richest men, warned Berkshire shareholdworld is experiencing today.
ers of a ballooning, potentially troubled future with derivaBut National Farmers and 35 other
tives in 2002.
groups are supporting a measure to prevent
The suits on Wall Street didn’t
that from being repeated. They signed onto
see that as a word to the wise. And
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a March 23 letter supporting a U.S. House
the country saw the commodity
bill that would bring reforms to the derivaprice run-up through the sum�������������������������������
tives market, and provide transparency.
mer of 2008, and the nosedive
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A broad spectrum of agriculture, oil,
afterward.
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transportation and grocery associations
The groups also said, “During
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signed onto a letter to Collin Peterson,
a
committee
hearing, one witness
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D-Minn., House Ag Committee Chairman
testified the commodity bubble
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and Frank Lucas, R-Okla., ranking member
cost Americans more than $110 bil�������������������������
of the agriculture committee.
lion in artificially inflated food and
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The groups support the Derivatives
energy prices.”
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Markets Transparency and Accountability
Problems touched many seg�������������������������������
Act of 2009, H.R. 977, saying in the letter
ments of the economy.
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it “will ensure market operators cannot
• Farmers were unable to exexploit loopholes in our regulatory system
ecute many cash forward contracts
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by organizing overseas. This legislation
for a time
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also requires a careful review of the limits
• Consumers paid more than
on how many futures contracts can be
$4 per gallon at the fuel pumps
controlled by non-traditional speculators.”
• Companies experienced challenges managing risk,
The legislation will funnel additional resources to the
causing poor financial results and subsequent layoffs
Commodity Futures Trading Commission, and help the
Other signers to the letter included National FarmCFTC see and reveal what is happening in what the financial
ers Union, Petroleum Marketers Association of America,
system calls the over-the-counter swaps market, those trades
National Milk Producers Federation, Air Transport Associanot listed on any stock exchange. The Act would also require
tion, American Association of Crop Insurers, Agricultural
most OTC swaps to go through an approved clearinghouse,
Retailers Association, as well as many commodity associaso transactions would be backed. OTC trading is the princitions and others.
pal market for U.S. government and municipal bonds.
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3
CWT’s new buyout offers
dairy farmers benefits
—Continued from page 1
late America’s agricultural economy, National
Farmers in December proposed purchasing
dairy, as well as grain and meat products.
National Farmers approach was adopted by
36 members of Congress in a letter to Vilsack
in January, urging he make dairy purchases for
feeding programs.
“Ag Secretary Vilsack’s move will deliver real
results by placing nutritious dairy products on
the tables of those less fortunate, while helping dairy farmers facing high feed costs and
extremely low pay prices,” said National Farmers
Ag Policy Analyst Gene Paul.
The nonfat dry milk (NDM) was acquired
by the Commodity Credit Corporation (CCC)
under the Dairy Product Price Support Program.
Under this program, CCC purchases NDM, butter and cheddar cheese at statutorily mandated
prices. These purchases support the prices of
NDM, butter and cheese, and the price farmers
receive for milk.
The powdered milk disappearance will help
reduce a supply factor, influencing commercial markets. “Increased consumption of dairy
products is just what dairy farm families need
during this economically stressful period,” Paul
emphasized.
National Farmers also endorses re-implementation of the once-active Dairy Export
Incentive Program (DEIP) to help increase
domestic dairy product sales abroad.
Producers have options in CWT bidding
As was the case in 2008, in addition to
submitting bids for their milk herds, participating farmers
will have the
option of
offering all
of their bred
heifers, at a
flat price of $700 per animal. In addition, there
are two program rule changes in this round:
1. Members of CWT whose bids were accepted in a previous round may bid again in this
round. This is a one-time exception to the exclusion affecting prior participants in the program
2. Producers whose bids are accepted in the
next and future herd retirements will be paid in
two installments. The first will be 90 percent of
the amount bid times the producer’s 12 months
of milk production, when it is verified that all
cows have gone to slaughter, and the remaining
10 percent plus interest at the end of 12 months
following the farm audit, IF both the producer
and his dairy facility – whether owned or leased
– do not become involved in the commercial
production and marketing of milk during that
period.
Detailed information can be found at www.
cwt.coop, including bid forms, an interactive bid
calculator to help estimate a farmer’s bid, and
answers to frequently asked questions. All bids
must be postmarked by Friday, May 1.
Ag economy, farmers
need higher prices
As segments of America’s economy begin to
show preliminary signs of a recovery, the nation’s
farm economy remains deeply troubled.
U.S. men and women who produce grains and
milk for America’s table are receiving, on average,
one-half of what they did in mid-2008. At the same
time, their input costs are higher, and ag operating
loans are more difficult to obtain. This endangers
some farmers’ ability to produce raw farm commodities at all this year.
“The economic pain is being felt in every corner
of agriculture,” said National Farmers Organization
President Paul Olson. “Fair farm prices can help
stimulate the rural economy, which is a truly effective
way to rebuild America.”
Olson used his home state of Wisconsin as an
example. No other single product produced in the
state creates a greater economic impact than milk.
The Wisconsin dairy industry generates $20.6 billion
a year for the state’s economy and accounts for more
than 40 percent of the 420,000 jobs in the agricultural sector.
Olson pointed to figures from UW-Madison’s
Center for Dairy Profitability that a 250-cow
Wisconsin dairy farm will spend, on average, about
$675,000 annually in supplies, products and services
purchased from local businesses and retailers.
“And it’s not just Wisconsin. Agriculture plays a
tremendous role in the health of the nation’s economy, which is why it’s important that farmers receive
prices on par with what it costs them to produce
those raw materials,” Olson said.
“We don’t believe the dairy supply and demand
circumstances account for the low market prices
dairy farmers are experiencing,” Olson said. He
noted the pricing mechanism is outdated and needs
to be overhauled. He said the new CWT herd buyout plan, which National Farmers supports, should
further pressure milk supply figures positively for
farmers.
The milk price to feed cost ratio is simply the
price of a pound of milk divided by the price of a
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pound of feed. Historically, milk-feed price ratios
consistently below 2.5 have triggered herd liquidation and ratios above 3.5 have triggered herd expansion.
A grain producer growing corn this year may
very well struggle to break even, according to USDA
estimates, his costs this year will hover near $684 per
acre. But cattlemen, who have struggled with more
stringent lender requirements since the economic
downturn, are actually in a better position to profit
from a contracting perspective, than they were last
summer.
Respected ag author Walters passes
Those of us who understand parity and raw material
economics lost a true friend and supporter on January 14.
Charles Walters not only realized where “new wealth”
in agriculture was derived from, but also knew all to well
what corporate greed and control is doing to the family
farm structure across America and around the world.
He had a long history with NFO, going back to the
early days of organizing farmers and ranchers, following us
through the holding actions, and serving as editor of our
monthly publication.
The following article, one of the last he wrote, appeared in the March issue of “Acres U.S.A.” On behalf of
all of us at NFO our sincere sympathy goes out to the family. All of us in agriculture lost a true hero. —Paul Olson.
on machinery; they actually burned out and executed their
nemeses.)
Muhm does not point out that something strange came
to NFO after the 1964 hold, and that every state bowed to its
logic. Some few bankers, economists and Chamber of Commerce leaders, especially one of the promoters of parity in the
old Raw Materials National Council days, installed into NFO
the intelligence that since 1955 the United States had enforced
the national equivalent of a Charles Ponzi scheme. The stimulation package was for a mere $72 billion, but this was twice as
much as the nation had a technical right to borrow based on
profits and savings.
Further, the collapse of farm prices was not a parochial
issue. With debt replacing debt, the whole system would
ultimately explode (Henry Paulson style). There was always a
NFO: A Parable to Remember
debate in NFO over whether public policy was the issue versus
There is a recent history of the NFO (National Farmadjustment in the going business equation. Keeping the variers Organization) that was bound to catch the attention of
ous schools of thought straight was an awesome job, one the
this publication. It is written by Don Muhm, an ag journalleadership was unable to handle.
ist who was a household word among members of that
Most of the leadership of NFO could comprehend this,
rebel group started – more or less – in 1955.
and
how
steady debilitation of agriculture hastens the destrucMuhm is a competent journalist who presents what
tion of the dollar, the economy and some 6 million-plus family
we used to call the baseball stats on the happenings of the
farmers.
hour. Styled The NFO: A Farm Belt Rebel, it is a history
It wasn’t that intractability caused NFO to survive and
that touches all the bases of
grow.
It was a feeling in the gut of farmers, a feeling Oren Lee
what we call “farm interests”,
Staley and Erhard Pfingsten and a platoon of rural spellbinders
and its arrival in effect makes
tapped to stage the 1967 milk holding action and its codicil,
the case for NFO even though
the all-commodities hold.
it often takes on the tone of
Muhm seems to miss the role of Bill Lashmett, as well
“the opposition” rather than
as an in-depth view of internecine strife, the fine points of
unbiased critique.
lawsuits and even NFO’s own status.
Newspaper journalism
Perhaps NFO grew too fast. Its costly action ran head-on
relies heavily on action. The
into
a
liquidity crisis, and it found only the preacher’s approach
nature of the craft prevents
– “pass the plate”, the plate in this case being promissory
long reflection or the in-depth
notes that the leadership knew could not be paid. There was
insight into economics and
also a consent decree that in effect closed down the holding
philosophy that such a subject
action under legal language that suggested quite the contrary.
might require.
Charles Walters
There is a measure of bias in Don Muhm’s narrative,
Recall, if you will, that
quite
a bit of righteous indignation and a marked indifferth
Harry S. Truman was faced by a hostile 80 Congress. The
ence
to
sources that were open to him during the intervening
Board of Trade and the Mercantile Exchange had been
hours
since
the 1960s and early 1970s. There are archives still
closed down by World War II, so now the handlers of basic
untapped, films, tapes and depositions that penetrate well
storable commodities felt their oats.
beyond the source called contemporary newspaper accounts.
The trades had been successful in passing the
Along with The Two Sides in NFO’s Battle, and the battle
Administration Procedures Act and the Employment Act
documents
called Holding Action and Angry Testament, here
of 1946, and the final product emerged as the Farm Act
is a first draft of a full NFO history. Maybe no one will pick up
of 1948-1949. It called for farm commodities representthe story again.
ing 82 percent of the harvested acres to be
However, should some other
managed downward in price to as low as 60
writer
or historian consider such
percent of parity – a clear reversal of the
The old NFO is largely
a project, we suggest a look at
statute known as 7 U.S.C. 601-602. Ezra
gone – may the new
depositions on file at the UniverTaft Benson carried the news to agriculture
NFO find its first magsity of Iowa, interviews with some
in 1952, and the NFO was born somewhere
nitude star.
few survivors of the era before
in thought, if not yet in action.
they are gone, and finally an
The writer of The NFO: A Farm Belt
examination of the economic reRebel does not cover this background, setcord that proves that farm parity
tling instead for the bare necessities of a meeting here, a
income,
not
war
spending
on
credit, delivered solvency to the
meeting there, the old Farm Holiday-era Governor of Iowa
United States and enabled Truman to balance the only budgets
Dan Turner counseling petition to the government, and
between the Great Depression and the present, except for a
the unsophisticated idea that middlemen were predatory
couple that were engineered by statistical manipulation.
animals who might best be exiled to some faraway Elba.
Just the same, NFO survives. Its embers hold in escrow
Those early days were less halcyon than desperate.
the key to economic security, a stable and solvent agriculture,
Unreal expectations allowed the worst shade of union taca concept mercantilists cannot seem to understand. Those
tics to cloud the first of the holding actions. This caused
early fights are over, largely forgotten, and a new grand design
newsman Don Muhm to present the movement as a bunch
looms afar. It is a food supply rid of hormones and synthetic
of Molly Maguires on the hunt for blood. Ignored was the
chemicals, with a close eye on scientists willing to poison the
legendary speaker who responded to a man’s shout, “By
population and let loose debilitation through GMO crops,
God, we’ll hang the bastards”, with “Sit down, Ole; you
cloned animals and other tampering that only greed can acdon’t even know who to hang”.
count for.
Muhm documents with pictures and words the extent
The old NFO is largely gone – may the new NFO find its
of the Molly Maguire response. (The Molly Maguire rebels
fi
rst
magnitude
star.
—Reprinted from Acres USA
of the Pennsylvania coal fields did more than flatten tires
4
Suhrs certain robotic milkers get more cows bred
—Continued from page 1
times daily. He figures about five years of a hired man’s
wages will pay for one robot.
The couple installed the devices in September, and
it’s drawn visitors. Groups come by for farm visits, with the
largest demographic, and the most curiosity, from retired
farmers. They’re even hosting an open barn on May 2. See
zumbroridgefarms.com for details.
bottles, print the list of which bottle is which cow, and
away he goes,” Doug said.
Ease of use
The robotic milkers and computer are easy to use.
“They’re simple,” he said. “It’s maybe a little more difficult running the computer than a cell phone, but it’s really self-explanatory, and pretty easy to figure out.” Doug
and Tina both run the system.
Step-by-step
The system cuts down on labor, more than just the
“The cows decide 100 percent when they go to get
milking. It scans the milk to check for mastitis or abnormilked,” Doug emphasized. They walk into a stall, stand
mal colors, like blood in the milk, weighs the cows every
in place, and the machine’s weight sensors
time they come in and records
in the floor of the stall determine the cow’s
the information. It also takes
position. So, while being milked, the cows
milk temperature.
stand how they want.
The breeding is the biggest
With this system, the cows wear a rething they changed. The robotic
sponder device, so the machine also knows
milkers don’t disrupt the hierarexactly which cow is being milked, if it is
chy of the herd, and the Suhrs
actually due to be milked and what ration to
are getting more cows bred.
pour into the feeder.
“It’s basically, rather than
Next, an arm-like part of the machine
sitting in the parlor for eight or
glides up to the udders to clean the cows’
nine hours a day, we’re sitting
udder and teats. The teats’ positions are
in the office looking at records
determined via sensor scans, and the teat
and that kind of thing. It’s a
cups attach to them, and milking proceeds.
different kind of labor, and very
Afterward, data from the milking is autoflexible,” he added.
matically fed into the computer system and
The system offers the flexThe Doug and Tina Suhr family
the machine sprays the cow’s udder and teats
ibility to tend to the attention list at
clean.
your convenience, and gives more scheduling freedom to
the dairy farmer. One night, the Suhrs didn’t get home to
The cow’s part
do chores until 8 p.m.
“It’s all energy driven,” Suhr explained. “They aren’t
Twice a day, they check the attention list for cows
going in to get milked. They’re going in to get the energy,
that
haven’t
been in to milk for 12 hours, whether it’s a
so it is crucial that you have the pellets in the robot and
cow
with
a
sore
foot, or a late lactation that just doesn’t
the TMR (total mixed ration) balanced together.”
crave
the
energy
in the feed.
In the Suhrs’ case the energy level in the TMR hap“Those
cows
you chase up, and pen them and make
pened to increase, so the cows didn’t feel like they needed
sure
they
go
through
and away they go,” he said. They see
more energy, and the cows cut down their visits to the
four
to
six
cows
per
robot
twice a day that they have to
robots each day. “So you gotta make sure you stay on top
corral
into
the
milking
robot
stall. Once all the cows are
of that,” he emphasized.
trained on the robots though, and they calve and they go
Monitoring tools
back into the robots, the cows relearn the robots faster
The system also offers a computerized tag on cow
than they did the first time.
collars with a pedometer that records activity in the comThe wash system is all automatic, too. It runs twice
puter. If a cow is in heat, that cow will show up as being
in a 24-hour period, the preset. Both robots shut down,
more active. “It will tell you when a cow is in heat when
wash all milk lines, and clear through up to the milk tank.
you aren’t around to see them in heat, when you’re not
The robots dump treated cows’ milk, putting their
around and your eyes are not available,” Suhr said. That
milk into what looks like a little garbage can on the side
tool was an add-on.
of the machine. It can also be dumped down a drain. After milking treated cows, the robot shuts down and does
Facilities adjustments
a five-minute wash so residue doesn’t get in any other
Doug is not only a third generation producer, he’s
cows’ milk.
also a third generation National Farmers producer. But that
The Suhrs aren’t new to change. Doug’s grandpa,
doesn’t mean everything stays the same. When Doug and
Dean Suhr, in 1951, built the first or second parlor in the
Tina chose the robotic milkers, they made some facilities
state. Still, his grandpa didn’t think the robots were a
adjustments.
great idea at first.
“I had an existing freestall barn. It was a double-six
“Once he saw it up and running [he changed his
built in 1997, and I just knocked out two overhead doors
mind], and now he’s got all his friends in Texas interin one end. They set the robots in the door openings, took
ested. He tells everybody about our web site, and keeps
the feed alley door out where the office is, and built a new
hounding me that I have to get a video on there,” Doug
building.” It’s a 28 X 60 addition off the freestall barn.
said.
DHIA testing
One thing Doug said he might have done differently
The system also offers a shuttle they hook up to an air
is make the purchase years ago, before he even started
line and milk line. Doug and Tina “walk away, hit a couple
having trouble hiring help. For the record, one exception
buttons on the computer screen, and click another thing
to trouble keeping hired help, of course, is his dad, who
on the computer,” Suhr said. It takes all the samples for
he hires to help with field work during the crop season.
DHIA. “When the tester comes, we simply give him the
5
The east and west Astronaut Milking Robots were set
into place with cranes during the construction process.
The second photograph provides a look at the addition with the new milk tank framed. In the photographs
below, the holding tank has just been sprayed, and a
trench was dug for telephone lines and corn burn to the
house.
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By Pat Lampert
The most recent Cattle on Feed Report is consistent with the five previous ones—cattle numbers
are extremely tight.
We have been telling producers for the last 12
months that Mama colored cows are declining due
to drought and low feeder prices the previous three
years. Holstein calves have been on the decline for
more than a year.
The reduced supply has already shown up with
plants cutting a day’s slaughter each week. We
believe packing plants will be looking with renewed
interest for fat cattle—with an uptick in interest this spring and well into the third and fourth
quarters.
Meanwhile, packers are attempting to tell producers there are a lot of contract cattle coming to
market now, and they have a large supply, but that
just isn’t the case.
Your trump card in this scenario is not supply
or demand, but what our respected customer—Mr.
and Mrs. John Q. Public has to spend on meat.
The economic downturn has effected buying
habits, and will continue to exert pressure on meat
prices. But, no matter how small the supply, the
beef still needs to move off grocery store shelves.
Data indicates ground beef is king right now.
The cull cow market remains strong, despite the
fact there are 25 percent more cows moving to
market compared to one year ago.
The concern we have is that the market may
slip because of the latest CWT herd buyout program. But timing is everything in the cattle business, and an increased supply during the grilling
season makes a lot more sense than late fall. We’re
hopeful the impact will be minimal, if the cows are
sold in an orderly fashion.
As always, please contact your field representative for the latest marketing advice. We offer
a balanced slate of cash and forward contracting
programs, in addition to risk managment programs
that can deliver extra dollars to your operation.
Vermont board member suffers accident
National board member Ray Tardiff, St. Albans,
Vt., was in a car crash in early April and has had
several surgeries. He fractured his left lower eye
orbital, along with his pelvis. He’s had a surgery on
his right hip and an immobilizer has been placed on
his right foot.
Cards can be sent to the Tardiff ’s at 2227 Highgate Road, St. Albans, VT 05478.
Latest on average crop revenue election,
NFU’s Johnson elected new president
Contrasting CCP, ACRES program
The zinger selling point of the new ACRES
(Average Crop Revenue Election) program, is the
starting level for price coverage – around $4.00
per bushel for corn, Purdue’s Allan Gray, professor and director, Center for Food and Agriculture
Business told Agri-Pulse.
AG
ance, because it
uses the
marketing year
cash price to determine revenue. It can manage
risk against rapidly sliding prices and major crop
losses, however.
Producers can use the decision tool at http://
www.extension.iastate.edu/agdm/crops/html/a145.html, and check with the local FSA office.
News
Extra
The ’09 enrollment window runs June 1 to
Aug. 14. Eligible crops include corn, soybeans,
wheat, barley, grain sorghum and oats.
In corn, for example, the CCP
Johnson heads NFU
(counter cyclical payment) trigger
Delegates to the 107th
Producers
can
use
price, or price coverage level, is
Anniversary National Farmers
the
decision
tool
at
$2.32 per bushel. The fundamental
Union Convention March 10
http://www.extengoal of ACRE is to stabilize gross
elected North Dakota Agrision.iastate.edu/
revenues over the next four years.
culture Commissioner Roger
agdm/crops/html/
“Critics of the CCP have
Johnson to lead the organizaa1-45.html
pointed out that it addresses price
tion.
risk only, and not production risk,
“I grew up in Farmers
and it is not based on the crops or
Union and believe strongly in the positions NFU
acres actually being grown by the producer each
advocates,” Johnson said. “I look forward to
year. ACRE addresses both of these problems,” exworking with Farmers Union members, those
plains Iowa State University Extension Economist
both inside and outside of agriculture, and policy
William Edwards in an online fact sheet.
makers on both sides of the aisle to improve the
On a regional basis, the ACRE program could
quality of life for those who live, work and raise
help farmers in states with:
their families in rural America.”
•High yield variability
Johnson said the economy is the overriding
•Larger yield increases
issue affecting those in agriculture today.
ACRE is not a replacement for crop insur-
March farm prices received unchanged from February
The preliminary All Farm Products Index of Prices
Received by Farmers in March, at 126 percent, based on
1990-92=100, was unchanged from February.
The Crop Index is up 1 point (0.7 percent) but
the Livestock Index decreased 1 point (0.9 percent).
Producers received higher prices for corn, lettuce, snap
beans, and tomatoes and lower prices for broilers,
soybeans, strawberries, and celery. In addition to prices,
the overall index is also affected by the seasonal change
based on a 3-year average mix of commodities producers sell. Increased monthly marketings of strawberries,
broilers, soybeans, and milk offset decreased marketings
of cattle, corn, cotton, and oranges.
The preliminary All Farm Products Index is down
Commodity & Unit
Cotton, per lb.
Wheat, per bu.
Corn, per bu.
Barley, per bu.
Grain Sorghum, per cwt.
Soybeans, per bu.
Oats, per bu.
Dry edible beans, per cwt.
Milk (all), per cwt.
Beef cattle (all), per cwt.
Calves, per cwt.
Hogs, per cwt.
Former Livestock Coordinator passes away
Calumet County, Wis., National Farmers Organization’s longtime Livestock coordinator, Leonard
Woelfel, age 91, Hilbert, Wis., died Feb. 27, 2009.
He was born Jan. 26, 1918 in Charlestown,
Wis., and married Marie Schmitt on Aug. 27, 1940.
He continued to farm in the Charlestown area, in
1948 relocating to farm near Stockbridge.
He belonged to National Farmers since 1964.
Price Received
0.409
5.85
3.96
4.82
5.54
9.13
2.11
28.80
11.50
78.50
104.00
44.20
20 points (14 percent) from March 2008. The Food
Commodities Index, at 121, decreased 1 point (0.8
percent) from last month and decreased 23 points (16
percent) from March 2008.
Prices Paid Index Unchanged
The March Index of Prices Paid for Commodities
and Services, Interest, Taxes, and Farm Wage Rates
(PPITW) is 174 percent of the 1990-92 average. The
index is unchanged from both last month and March
2008. Lower prices in March for nitrogen fertilizer,
diesel fuel, feeder cattle, and feed concentrates offset
higher prices for potash & phosphate, self-propelled
machinery, herbicides, and insecticides.
100 % Parity Parity Received In cents /lb.
1.81
23
0.409
13.40
44
9.75
8.27
48
7.07
9.03
53
10.04
14.80
37
5.54
20.20
49
15.2
5.47
39
6.59
64.60
45
28.8
44.20
28
11.5
236.00
33
78.5
338.00
31
104.0
129.00
34
44.2
Source: Agricultural Prices – National Agricultural Statistics Service, USDA
6
By Tim Ennis
By Wayne Moore
Milk production is basically equal to last
year; Cooperatives Working Together announced
a huge herd reduction; Secretary of Agriculture
Tom Vilsack announced a large increase in dairy
products to be donated to government school
and foreign aid programs; and, cull cow slaughter
is running around 20 percent greater than last
year.
Sounds like things are turning around and
milk prices will begin to rise. So what happened?
Class III prices on the CME Futures Market
dropped up to $1.50/cwt. Block cheese prices
have reached the $1.30/lb range three times
since the first of the year.
Yet, just as these cheese prices start to affect
milk prices, processors offer cheese on the cash
market at a lower price and the momentum is
stopped.
Who is to blame for the crisis in agriculture;
the greedy people in the oil business; the suppliers of fertilizer and fuel; processors that want to
pay their CEO’s millions of dollars of bonuses;
the government who continues to bail out everyone except the people that feed the world, the
retailers that must pay their CEO’s and shareholders?
Yes. All are to blame. Providing cost of production plus a profit is only fair but greed is not!
Everyone should be able to obtain fair prices for
their products, including farmers!
The retailers must make a profit to stay in
business. If their costs increase how do they
maintain the profit margin? Do they raise prices
to the consumer? Of course they do and when
commodity prices fall they are very slow to show
that decrease to the consumer.
So where is the path of least resistance?
C
R
O
P
I
N
Downward! That means the retailer puts pressure
on the processor and wholesaler to lower prices.
What do these entities then do? They put the
pressure on the only group that has no place to
pass it on. The farmers have no one to put the
pressure on; or, do they?
All farmers should work together and put the
pressure on
government
The CWT organizato legislate
tion has provided a
fair farm
supply management
programs.
system. That same
Dairy farmers
organization could
that belong to
develop a pricing
cooperatives
system to make all
should force
dairy farmers prostheir repreper.
sentatives on
the cooperative boards to
demand that their cooperatives work with other
cooperatives to develop a pricing system that will
provide cost of production plus a profit.
Whether it is a system similar to Canada’s, a
base and excess program, or some other type of
program that can be implemented. It is a necessary measure now.
The CWT organization has provided a supply management system. That same organization
could develop a pricing system to make all dairy
farmers prosper. When farmers prosper the whole
world prospers.
We don’t need a stimulus for the banking
or auto industries to bring prosperity back to
the nation. We just need fair commodity prices.
This will create more jobs than the government’s
stimulus program will ever do.
S
U
R
A
N
C
National Farmers
E
Providing MaximumMarketing Services
We officially had a great first year, finishing with nearly 50 members taking
advantage of National Farmers Crop Insurance through Ag Assure. A big
thank you for everyone who is working together to learn more about how grain
marketing and crop insurance go hand-in
hand.
If you have not picked up Crop-Hail
Insurance yet for the 2009 season, it is
time to consider it. Hail can destroy a
portion of your crop, or even wipe out
entire fields. Crop hail is rated for your
individual counties, so please contact
National Farmers Crop Insurance for a
quote in your area.
A Special Thanks
On behalf of members of National Farmers, I want to extend a thank-you to Gilbert
Kleaving for his tireless work benefitting agricultural producers. And not just over the past
several months as acting Director of Grain,
but for a lifetime of effort, like many other
members. We will continue to rely on his support and advice as he assumes his new role as
a program development adviser.
Tim Ennis
National Farmers’ partner in crop insurance will
work hard to find the right products for your
farming operation.
NATIONAL FARMERS CROP INSURANCE
The past year we saw unprecedented price
highs and extreme price drops. The first three
months of 2009, have already come and gone. And
now we’re entering the historically most favorable
time of the year to establish prices for corn and
soybeans — April, May and June. Ask your grain
representatives about the historical 40-year and
15-year seasonal tendencies for corn and soybean
prices.
In only five months from July 2008 to December 2008, the extreme price drop of commodities,
including grains and crude oil was a real shock
and meant losses for corn producers who did not
protect themselves with forward contracts, crop
insurance and put options.
When corn was more than $7 per bushel last
July, who would have predicted the average local
price in central Iowa would be $2.70 per bushel
by the first week of December? This was a drop
of more than 60 percent. Although prices have
recovered by $1 per bushel, no one accurately forecasted the future.
Will
2008 prove
And now we’re enterto be much
ing the historically
like 1973,
most favorable time
when prices
of the year to estabclimbed to
lish prices for corn
new highs,
and soybeans— April,
but did
May and June.
not repeat
those levels
for many
years, despite strong demand from the USSR and
other countries?
Last year the forecasters were telling us that
ethanol was our new USSR. Can you continue to
rely on that thinking to protect your grain prices
in the year ahead?
Marketing Plus and all the programs and
services we provide in the Grain Division are
designed to gain advantages for you based on what
we know, the past.
Authorizing us to negotiate sale of your grain
now, will protect you from the unknowns in the
future. Act now, authorize your grain for orderly
sale through Marketing Plus.
866-247-2667
7
A publication of the National Farmers Organization
April/May 2009
National Farmers one of top U.S. organic marketers
Charley and Alan Johnson of Johnson Farms, at
shipped all seven truckloads of his organic corn early,
Madison, S.D., have used every opportunity includso that he could allow other organic producers to
ing great field days, at their farm to demonstrate
use his bin and dryer on more than 10 truckloads of
what works to make their operation successful. High
their corn. In turn, his neighbors have always helped
on their list of keys to success they always mention
Broekemeier to load out with the use of their vac.
include marketing through NForThe whole season has been
ganics.
punctuated by that type of support
That day OFARM and
They hosted a crowd estiand cooperation. When one proNational Farmers had
mated at 130 at their farm for
ducer needed to market corn that
the cameras rolling
the summer 2008 field day. The
was about two percent over the
and captured some
Northern Plains Sustainable
moisture limit, another producer
great video which you
Agriculture Society sponsored the
cooperated by trading contract
can see by requestfield day.
obligations so that acceptable corn
ing a DVD from us.
That day, OFARM and
would be workable with each buyer.
We also have a DVD
National Farmers had the camI say thank-you for the supavailable about workeras rolling and captured some
port, cooperation and understanding together to market
great video which you can see by
ing it takes to develop the reputaconventional grain.
requesting a DVD from us. We
tion for dependability that the
also have a DVD available about
NForganics program enjoys today.
working together to market conWith your help, I look forward to
ventional grain.
again making the best of the year ahead.
Ernie Broekemeier is our second board member
And, to wrap things up, one print ad we have
on the OFARM board. In OFARM, we cooperate
running currently reads that there are two keys to
with seven other groups of certified organic producsuccessful organic grain farming. Weed control and
ers in North America.
marketing. We don’t do weed control.
Individually, Ernie Broekemeier sold and
NForganics markets right...by marketing together!
New division directors named, Kleaving
assumes role in program development
Non-Profit
U.S. POSTAGE PAID
PRINCETON, MN
PERMIT NO. 18
Many of the certified organic grain producers who rely on the
NFoganics program are
the best of the best as
By Tim Ennis
far as people who care
about other people and their fellow producers.
Their dedication to the idea of working together
for the benefit of the rural community as well as
their own individual interests has been a key to the
overall success of the NForganics program over the
past few years. There are too many good producers to name, but some of them and the things they
have done to help the program and fellow producers
should be acknowledged.
Carmen Fernholz has spent countless hours representing the interests the NForganics participants
as our representative on the Organic Farmers Agency
for Relationship Marketing (OFARM) Board and
as vice president of OFARM. He has referred many
organic producers to us and many of them have
become members.
In January, Farm Journal magazine printed an
article in which Carmen told of the profiable results
and benefits he sees in marketing together through
NForganics.
Tim Ennis
528 Billy Sunday Road
P.O. Box 2508
Ames, IA 50010
Address Service Requested
National Farmers
Garry Crosby
Gilbert Kleaving
8
Crosby new livestock director
At the national board of directors meeting March 25, Garry
Crosby was appointed Livestock Division Director. He had been Acting
Livestock Division Director for more
than two years.
Upon accepting the appointment, he vacated his national board
seat. His Wisconsin alternate, Ileen
Moos, will assume his seat for the
remainder of Crosby’s term.
Crosby farms in Shell Lake, Wis.,
on a grain and dairy farm.
that position until 1991.
After leaving the organization
for a period of years, he returned to
head NForganics in 2004.
His work to grow the feed and
food grade organic marketing effort
has paid dividends to National Farmers for the last five years.
Ennis was raised on a first generation National Farmers family farm
in Sauk County’s Wisconsin Dells.
Ennis was the oldest of 11 brothers
and sisters on his parent’s hog and
grain operation.
Ennis new Grain Director
Tim Ennis was named the new
Grain Division Director. He had
been head of NForganics.
Ennis began his career with
National Farmers in 1971, after
graduating with a B.A. in economics
from the University of Chicago.
He started in the membershp
and dues department, and joined the
Specialty Crops division as a negotiator in 1974.
Ennis became Director of
Operations for the grain marketing
division in 1986, and continued in
Kleaving joins program development
Gilbert Kleaving, who served as
Acting Grain Division Director for
nearly two years, has accepted a parttime role in the program development area.
He will advise and assist the
grain division and its new director,
Tim Ennis. He will also work with
Heritage Acres Foods and its retail
efforts.
Kleaving will remain on the national NFO board, and the Executive
board, as well as serving as a Trustee.