GROWMARK Perspective on 2012 Farm Bill

2012 is likely to be a very interesting year for agricultural policy as we face the writing of a new Farm Bill during a presidential election year with a huge federal deficit.

growmarkSince the GROWMARK cooperative system represents the interests of farmers on the federal level, I talked with GROWMARK government affairs director Chuck Spencer to get his perspective on what might happen in 2012 as it relates to farm policy, after the “super committee” failed to reach an agreement which would have created an new farm bill. “The super committee did find that the agriculture community stepped up to the plate and were in agreement to a $23 billion reduction over a ten year period in farm program spending,” he said. “The discussion now is ‘where do you begin?’ Do you start over? Do you begin where everybody agreed and then move forward?”

Chuck believes the groundwork has been laid and he expects the agriculture committees in Congress to use that as a framework for discussion. “It’s important to note that while the farm bill will expire in 2012, it either needs to be extended or they’ll need to come to agreement and pass a new one or the 1949 Farm Bill goes into play which is dealing with parity prices, and that would certainly be a budget buster,” Chuck noted.

Chuck also pointed out what most of us in the agriculture business already know – that of the 15 titles in the farm bill, the commodity title is what gets most of the attention, even though it only makes up 2/10ths of a percent of the federal budget. “It’s provided as a safety net, a way to manage risk,” Chuck said. “You’ll notice that 90% of the groups offering proposals to the super committee asked for a revenue-based, risk management-based safety net.”

Listen to my conversation with Chuck Spencer here: Chuck Spencer Interview

AgGateway Helps Agribusinesses Work Together

You may not have ever heard of AgGateway, but this relatively youthful organization already has a membership that reads like a who’s who of agribusinesses and their important goal is to help efficiently share information between trading partners in the agricultural and food supply chains.

GROWMARK was one of the founding companies of AgGateway just six short years ago, growing out of an organization known as RAPID. “RAPID was really formed by the crop protection segment of the ag industry and it did what AgGateway does today,” said GROWMARK Chief Information Officer Tim Piper. AgGateway allowed the concept started by RAPID to expand into other segments of agribusiness. “Many companies like GROWMARK are involved in several other segments of the ag industry and we didn’t really have a system of developing projects and standards around interchange between trading partners in these other segments.”

So, AgGateway developed with councils for different segments of the industry. “There’s still a crop protection council, but now we also have a crop nutrition council, seed, feed, etc.,” Tim explains. And as the organization grows the councils are expanding as well, with a retail and a precision ag council added recently and more councils in the works for grains, animal health, equipment and specialty crops.

Listen to more of my conversation with Tim about AgGateway here: Tim Piper Interview

Watch a GROWMARK video about the benefits of AgGateway.

GROWMARK Essay Contest Underway

Appropriately for the International Year of Cooperatives, the theme for the 2012 GROWMARK essay contest is “Cooperatives in a Global Environment.”

This is the 19th year for the program, sponsored by the GROWMARK System and FS member cooperatives, in conjunction with state FFA leaders, to help young people develop their writing skills, learn about current issues impacting agriculture, and understand the unique role of cooperatives. This year, students will focus on three questions: What benefits do co-ops provide their member-owners? How do co-ops improve the quality of life in their communities? How do co-ops contribute to economic growth throughout the world?

The contest is open to all high school FFA members in Illinois, Iowa, and Wisconsin. Essays should be approximately 500 words, typed and double-spaced. The postmarked entry deadline for Iowa FFA members is February 15. The postmarked entry deadline for Illinois and Wisconsin FFA members is March 15. Additional program details have been sent to agriculture teachers and are online at www.growmark.com.

UN Kicks off International Year of Cooperatives

On the same day the world was officially proclaimed home of seven billion souls, the United Nations General Assembly officially declared 2012 as the International Year of Cooperatives with the theme of “Cooperative Enterprises Build a Better World”.

“This Day of 7 Billion – is not about one newborn, or even one generation,” Secretary-General Ban Ki-moon said. “This is a day about our entire human family.”

According to the U.N., one billion of the seven billion souls on the planet belongs to a cooperative and such cooperatives, especially in agriculture, are important to alleviating poverty and increasing economic opportunities in less developed countries.

According to the latest Global300 report, released today and prepared by the International Co-operative Alliance, the world’s largest 300 co-operatives generate revenues of $1.6 trillion—equal to the GDP of the world’s ninth largest economy. Most of the 300 largest cooperatives are found in the developed economies of France, Germany, Japan, Netherlands and the United States, with 30 per cent engaged in the agriculture and food sectors, 23 per cent in retailing, 22 per cent in insurance and 19 per cent in banking.

Among the successful cooperatives that will be participating in the yearlong cooperative celebration is GROWMARK. More than 150 representatives of the world’s largest co-operatives are in New York City for the official launch and side events this week.

GROWMARK is a member of the National Cooperative Business Association (NCBA) and the Canadian Cooperative Association (CCA) – both of which are supporting the campaign – and member cooperatives are being encouraged to participate on a local level with promotional materials, such as window clings, posters and other graphic pieces. GROWMARK will publish a 2012 calendar with photos that exemplify the cooperative spirit.

FS PARTNERS Pioneering QR Codes in the Field

FS PARTNERS in Ontario is pioneering a new use for QR codes in the field so farmers can access updated information about test plots. In case you are not yet familiar with them, QR is short for Quick Response and they are those bar code looking things you can read with a smart phone that are starting to pop up every where these days.

Juli Paladino, FS PARTNERS retail energy administrator in Ontario, helped develop the use of this communications technology for Pursuit of Maximum Yield corn and soybean plots. “So, you’re at a Pursuit of Maximum Yield site, you’re going to scan it and it’s going to take you right to information on our field trials,” she explains. That information can include seed information, treatments, planting dates and even audio updates tailored specifically to that particular site.

As smartphones become more prevalent, people are becoming more familiar with using QR codes to get information, but Juli says they have actually been around for a while. “Originally they were developed in 1994 by Toyota in Japan to track parts,” she said. “It’s been a very commonplace technology in Japan and Asia.”

While consumers in the United States has been slower to adopt the use of QR codes, Juli says farmers are quicker to pick up on new technology. “Farmers are at a higher rate than the general public to be adopting mobile phone technology. They’ve got the smart phone and they’re ready to use it.”

FS PARTNERS used the QR codes at plots in Ontario this year and Juli expects to see more widespread use of the technology at the Pursuit of Maximum Yield plots in the Corn Belt next year. The Pursuit of Maximum Yield is an FS Green Plan Solutions on-farm discovery program geared toward increasing yield per acre to meet the demands of a growing world population.

Listen to or download my interview with July here: Juli Paladino Interview

GROWMARK Offers Grain Bin Safety Tips

Every year there are dozens of grain bin accidents reported across the Corn Belt, with far too many ending in fatalities.

GROWMARK grain systems operations manager Randy Holthaus says the harvest season is an especially dangerous time on the farm around grain bins. “During the harvest, with the need to get it in and get it done, people get in a hurry and work long hours,” he said. “They’re running non-stop to get the crop out so fatigue plays in as well.”

Randy says they recommend that growers never enter a grain bin if at all possible, but realistically he knows there are times when it might be necessary. “Don’t get into the bin unless you lock out the power and make sure someone knows you are getting in to the bin,” he says, adding that the person on the outside should ideally be able to observe you getting in and out and have a rescue line tied to you.

The biggest hazards often occur when someone gets trapped in a bin and another person automatically tries to help. “The first reaction of family members or co-workers is to get in the bin to help,” which Randy says often results in making a bad situation worse by sending grain cascading on the victim and totally engulfing them. “Getting into the bin with a victim is twice as bad because you are not only endangering yourself but you may be creating a bigger problem for the person in the bin.”

The buddy on the outside should instead make sure the power is shut off, call 911 and possibly try to get a line thrown to the victim if that can be done safely. “The main thing is, you need professional help,” he stresses.

Bottom line – be alert, be aware and just be careful out there!

Listen to or download my interview with Randy here: Randy Holthaus Interview

October is National Cooperative Month

Each October since 1964, cooperatives across the United States have been celebrating the cooperative difference, business model and the contributions of cooperatives to their communities, during National Cooperative Month.

One of the best examples of an agricultural cooperative that makes a difference is GROWMARK, based in Bloomington, Illinois, and chairman of the board Dan Kelley says cooperatives touch our lives in many ways.

growmark annual meeting 2011“Cooperatives have a long history going back to England in the mid-1800s when producers would get together to help market their products and that has resulted in the cooperative system here in the United States,” he said. “If you think of products like Welch’s grape juice, Florida’s Natural, SunMaid Raisins – those are cooperatives that have a national brand and market in some cases world wide.”

Dan says cooperatives in general are important to not only the economy of the United States, but the entire global economy, which is why they are looking forward to being a part of the United Nations International Year of Cooperatives, which officially begins on October 31. “What we intend to do is participate with other cooperatives here in the United States through the National Council of Farmer Cooperatives,” Dan says, adding that they will be focused on telling the cooperative story to a broader audience.

Dan says cooperatives are especially important to developing countries and some GROWMARK board members and managers were able to go to Ghana earlier this year to offer some advice to producers there. “It was an eye-opening experience to see people who are getting by on a subsistence standard of living and with some minor improvements could really improve their lives,” he said.

Listen to my interview with Dan here: Dan Kelley Interview

GROWMARK Names Scholarship Winners

GROWMARK is helping 35 college students from throughout the Midwest to continue their educations in agriculture and business.

GROWMARK Steve German“GROWMARK invests more than $45,500 annually on scholarships. We’re investing today for a return tomorrow,” says Steve German, GROWMARK member employment manager, pictured here at the scholarship luncheon during the recent GROWMARK annual meeting. “There’s a need for agriculture businesses to support formal education to strengthen agriculture.”

The students from Illinois, Indiana, Iowa, Kentucky, Missouri, Nebraska, and Wisconsin all received GROWMARK-sponsored scholarships this year, joining hundreds more who have been helped by the cooperative over since the early 1960s. Today, they are awarded to students majoring in agriculture or accounting at 15 universities and colleges. Each educational institution is responsible for the selection process and awarding scholarships. University scholarship recipients are honored each year at the GROWMARK Annual Meeting in Chicago.

Find out who all received the awards on the GROWMARK Blog.

GROWMARK Grain Division Growth

The GROWMARK Grain Division is making news.

First off, the division will have a new VP as of November 1. Brent Ericson has been named Vice President, Grain, replacing Davis Anderson, who retired in September.

As VP, Grain, Ericson will be responsible for the overall management, oversight, support and growth of GROWMARK’s grain business, which includes 80 grain members and companies inIllinois, Wisconsin, and Iowa. Combined, the 80 companies market approximately 1 billion bushels of grain and oilseed annually into river, rail, and processor markets.

The grain division has also announced a new venture.

Heritage FS, Gilman, has partnered with GROWMARK to create EASTERN GRAIN MARKETING, LLC. (EGM). The company’s main office is located in Gilman.

Dana Robinson, EGM General Manager, said the venture will strengthen the package of grain services offered to farmers in eastern Illinois. ‘EGM combines our local knowledge and expertise with sufficient resources to expand grain marketing alternatives and grain handling services for the growers in eastern Illinois. This adds value to the crops grown in eastern Illinois and that added value will be realized by the growers through higher payments for their crop.’

Growers will have greater access to grain markets via a rail shuttle loader EGM will construct in western Kankakee County. Approximately two million bushels of storage space, which EGM will construct, will be located at the shuttle location.

EGM is the fourth regional grain marketing venture formed in Illinois between FS member cooperatives and GROWMARK. Total Grain Marketing, LLC was launched in 2006, WESTERN GRAIN MARKETING, LLC was formed in 2007; and NORTHERN GRAIN MARKETING, LLC was formed in 2009.

GROWMARK Helping Cultivate Master Farmers

GROWMARK farm progress show 2011Rick Nelson is not just a farmer from Paxton, Illinois – he’s a Master Farmer – and as such, he is helping to cultivate other master farmers in the state.

I talked with Rick at the Farm Progress Show in the GROWMARK tent, since Rick is also Vice Chairman of GROWMARK, and we talked about the Cultivating Master Farmers program that GROWMARK helps to sponsor in Illinois. “In the Cultivating Master Farmers program, one of the Master Farmers who’ve been around for a while spend some time with young, up and coming farmer couples who are just getting started in their careers,” Rick explains.

The two year mentoring program pairs up young farmers with Master Farmers. “Part of what we try to do in that program is to allow them to ask the questions that are on their minds,” Rick says. That includes topics like technology, record keeping, marketing, estate planning and much more.

The Cultivating Master Farmers program is coordinated by Prairie Farmer magazine in Illinois. Young farmers have the opportunity to apply for the program in odd years, so the Class of 2013 is already started up, but those who will still be 35 or younger by the end of 2012 will have a chance to apply for the next class.

Listen to or download my interview with Rick here. GROWMARK Vice Chairman Rick Nelson

2011 Farm Progress Show Photo Album


AgWired Coverage of the Farm Progress Show is sponsored by New Holland GROWMARK Trellis Growing Systems

Farm Progress Show Progress

I have to confess that working in air conditioning beats the 102 degrees in the media tent around noon yesterday! It may have been a cooker out there but this year’s Farm Progress Show was great in a lot of ways. Attendance seems fantastic and with the great weather all of the demonstrations were able to run as scheduled. This is a shot from the final morning when I got a little exercise climbing a Brock grain bin.

To find out how the show was going I caught up with Farm Progress Show manager, Matt Jungemann. Matt says that Tuesday was a record attendance and speculated that Wednesday was too. We chatted about one of the big sponsors of the show (and AgWired), GROWMARK. GROWMARK has been one of the foundation partners since the beginning of the dedicated Decatur show site. They support the host farmers in a number of ways that include the alfalfa in the parking lots, seed/fertilizer/inputs for demonstration fields and demo plots. As Matt points out, there is a lot of work on planning things like alfalfa field rotations.

You can listen to my interview with Matt here: Interview with Matt Jungemann

Cindy and I did a little summary this morning to figure out just what we’ve done regarding Farm Progress Show this year. So here’s what we came up with: 889 total photos, 46 interviews/press conferences, 4 videos, 19 posts on AgWired so far and 7 on Precision Pays. That doesn’t count content produced for other client sites. We’ve got lots more to come!

2011 Farm Progress Show Photo Album


AgWired Coverage of the Farm Progress Show is sponsored by New Holland GROWMARK Trellis Growing Systems

Farm Progress Show Field Demo Hosts

farm progress show 2011I was out watching the field demos in the hot sun yesterday and was pleased to meet the hosts of the demo plots Dawn and David Brix.

“We take care of about 225 acres that we use for combine and tillage tune up and then Tuesday and Wednesday during the shows we have demos out there,” David told me.

They partner with GROWMARK FS on the field plots. “They keep an eye on it all year, whether it’s crop scouting, fungicide treatments, genetics,” David said. “They take the worry out of our hands, we’re doing the labor but they’re doing all the stuff to make sure it’s the best crop it can be.”

It has been a challenging year for the corn crop. “We didn’t plant until maybe the 10th, then it got flooded out and then we didn’t have another drop of rain after that,” he said. “All things considered, to still have 110-115 bushels yields, that’s pretty good.”

Listen to or download my interview with David here. FPS Field Demo Host Farmer David Brix

2011 Farm Progress Show Photo Album


AgWired Coverage of the Farm Progress Show is sponsored by New Holland GROWMARK Trellis Growing Systems

Get Connected to GROWMARK CropNAtion

farm progress show  2011At the 2011 Farm Progress Show, GROWMARK is showcasing CropNAtion “the place for busy, progressive farmers and ranchers” to connect.

GROWMARK’s Heather Miller was signing people up for the agricultural social media site at the GROWMARK tent and Chuck talked with Cory Winsted about it. “You could say that CropNAtion is a virtual coffee shop, where a producer can be at home or in the shop on a computer and they can communicate with other producers all over the world,” Cory said. There’s no cost to sign up for CropNAtion – which you can do here at FPS this week, or on line anytime at cropnation.com.

Listen to or download Chuck’s interview with Cory here. GROWMARK's Cory Winsted

2011 Farm Progress Show Photo Album


AgWired Coverage of the Farm Progress Show is sponsored by New Holland GROWMARK Trellis Growing Systems

Illinois Farm Bureau is Proud GROWMARK Parent

growmark annual meeting 2011As GROWMARK enters its 85th year, the Illinois Farm Bureau (ILFB) is proud to have watched the cooperative grow into something bigger and better over the years.

“The GROWMARK system started under the auspices of Illinois Farm Bureau years ago, so we’re kind of the parent of the organization,” said ILFB president Philip Nelson at the cooperative’s annual meeting last week in Chicago. “It’s been successful, they continue to grow in all regions of the country providing goods and services that farmers utilize.”

Phil conducted the nomination and election of new directors for GROWMARK during the business session. Five of the cooperative’s 16 director seats, established by geographic zone, were elected and will serve three-year terms. Bob Phelps of Rockton, Ill., who has served on the GROWMARK Board since 1997, David Watt of Murrayville, Ill., and Matt Heitz of Farley, Iowa were re-elected to the board. Jack McCormick of Ellis Grove, Ill., and Kim Fysh of Thamesville, Ont. were elected to first terms on the GROWMARK Board.

You may recall that when President Obama visited Illinois this month, Phil was able to challenge him about the regulations being considered by the federal government that could make it more difficult for farmers to do their jobs. “We’re not asking for a favor but we need some common sense or you’re going to regulate what we think is the biggest industry in the country right out of production,” Phil said he told the president. “I think the president addressed the question somewhat but I think it shows that we need to get further engaged with the EPA so that they better understand what they’re doing.”

I also asked Phil about the crops in Illinois this season – listen to or download the whole interview here. IL Farm Bureau President Phil Nelson

2011 GROWMARK Annual Meeting Photos

GROWMARK Reports Record Sales, 2nd Best Year

growmark annual meeting 2011GROWMARK CEO Jeff Solberg had great news for the system’s stakeholders at the Annual Meeting in Chicago Friday.

“Our sales this year are $8.5 billion, which is a record level of sales for us,” Jeff said. “A lot of that is price inflation, we’re a commodity based business, but we also have a lot of volume growth there – higher plant food volumes, higher crop protection volumes, seed volumes are up and our energy volumes are up.”

Jeff says after tax income this fiscal year is $182 million. “That’s our second best year in history and we’re very, very proud of that,” he said. Patronage to members will amount to about $80 million.

That’s value-driven!

Listen to my interview with Jeff Solberg here. GROWMARK CEO Jeff Solberg

2011 GROWMARK Annual Meeting Photos

GROWMARK Annual Meeting is Value Driven

growmark annual meeting 2011The theme of the 2011 GROWMARK Annual Meeting is Value Driven and there are over 1,000 stakeholders attending the meeting in Chicago this week.

I spent a few minutes with Dan Kelley, Chairman of the Board and President of GROWMARK, prior to the opening reception Thursday night about what value-driven means to GROWMARK. “The GROWMARK system has historically been recognized for having a high standard of ethics and we carry that into customer responsiveness and being able to satisfy our customers’ needs and hopefully exceed their expectations,” he said.

growmark annual meeting 2011Dan says it has been a very good year for GROWMARK and agriculture in general. “Agriculture has been one of the stellar industries in this economic downturn over the last 2-3 years,” he said. “We have now recorded our best seven years in the history of the GROWMARK system, which is 84 years.”

Dan operates a grain farm in partnership with his two brothers and son, and he says it has been a challenging growing season for the Midwest, so every bushel counts. “I’ve heard yields from almost zero, in the low 40s, to as high as 240,” and that’s just in McLean County, where Dan farms in Normal and where GROWMARK headquarters are located in Bloomington.

Listen to my interview with Dan Kelley here. GROWMARK President Dan Kelley

2011 GROWMARK Annual Meeting Photos

Seven Wonders of Corn Yield World

Seven has always been considered to be the perfect number, so it’s no surprise that there are seven factors that make up the combination for consistent high yielding corn crops.

7 wonders corn worldA new website looks at “The Seven Wonders of the Corn Yield World,” based on the research of University of Illinois plant physiologist Dr. Fred Below.

Dr. Below has been on a quest to help all farmers achieve the Holy Grail of corn – consistent 300 bushel per acre yields – ever since he saw it happen more than 25 years ago. He has categorized the results of his research into seven management practices or “wonders” that can result in high yielding corn. His study helps growers answer the question of what the latest products and practices contribute to yield.

“Roughly speaking, the higher up on the Wonder list the more control that factor exerts over the Wonders that follow,” Below explains. “When combined, all of these factors contribute to big-yield gains.” In order of importance, they are:

1. Weather
2. Nitrogen/fertility
3. Hybrid selection
4. Previous crop
5. Plant population
6. Tillage
7. Growth regulators

Below will present his plots and detail the 7 Wonders of the Corn Yield World in person at the annual Farm Progress Show at the AGROTAIN exhibit (lot 1164 on Eleventh Street) Aug. 30 – Sept. 1 in Decatur, Ill. Below’s plots at the show were sponsored by AGROTAIN International, BASF, DEKALB and Mosaic.

I interviewed Fred about the 7 wonders earlier this year at the GROWMARK FS Green Plan Solutions “In Pursuit of Maximum Yields” conference. Listen to that interview here: Fred Below Interview

cropNAtion A Virtual Coffeeshop For Farmers

GROWMARK announced their sponsorship today of a new online location for farmers called cropNAtion. You can create a free account and be in on the start of a new social network for farmers. I’m sure they’re looking for feedback.

Today’s farmers and ranchers are so busy increasing their productivity to meet the needs of a growing world that they don’t have time to sit and visit with their neighbors like they used to. However, there is still great value in building relationships, sharing information, and asking for advice.

A new website and mobile application, cropNAtion, will allow farmers and ranchers to connect with each other whether they are across the country or across the section.

The site, www.cropnation.com, is designed to serve as a one-stop resource for on the go information. After creating a profile, users can share information about their operations, ask and answer questions, upload photos and videos, and access the latest markets and weather conditions.

“We saw a need for farmers and ranchers to have a ‘virtual coffeeshop’ – a place where they could ask questions, share stories and photos, and cultivate relationships,” said Jim Spradlin, GROWMARK vice president, agronomy. “GROWMARK is pleased to sponsor this site, which we hope will be fed by farmers everywhere.”

Anyone with an interest in North American agriculture may register for and use the free site. The mobile application will be available for iPhone and Android platforms in late summer.

Retail and Acquisitions Put the GROW in GROWMARK

Retail businesses and acquisitions really put the “Grow” in the GROWMARK system.

growmark shelly kruseShelly Kruse is GROWMARK vice president of retail and acquisitions and I spoke with her earlier this year about her job.

“I work a lot with our retail divisions, which are member cooperatives that have actually merged into GROWMARK,” Shelly said. Three of those retail divisions are located in Iowa, one in Illinois, two in Wisconsin and one in Ontario, Canada.

The acquisitions part of her job really keeps Shelly busy. “Some of the most recent ones have been very focused on agronomy, adding fertilizer storage,” she said, adding around 250,000 tons of storage for fertilizers with the purchase of several CF terminals. Other acquisitions have been in the areas of seed and energy.

Shelly has been with the GROWMARK system for 28 years and she has seen lots of changes in that time. Listen to my interview with Shelly here: Shelly Kruse Interview

GROWMARK Awards Jim Evans Endowed Chair

This is Jim Evans leading an FFA reporters workshop sometime in the 1960′s. The Endowed Chair in Agricultural Communications in his name at the University of Illinois, College of Agricultural, Consumer and Environmental Sciences just got a large donation. If you haven’t made a contribution, please consider doing so.

GROWMARKGROWMARK, Inc. announced today a $100,000 award to the University of Illinois initiative between the College of Agricultural, Consumer and Environmental Sciences (ACES) and the College of Media designed to address the growing need for effective communications in the fast-changing world of agriculture, food, feed, fiber, bio-energy and rural development.

The award from GROWMARK will be applied towards the university’s $2 million goal for the James F. Evans Endowed Chair in Agricultural Communications.

“There has never been a more critical time for agriculture to speak clearly and effectively as an industry,” says Ann Hastings Kafer (Ag Comm ’86) and GROWMARK Director of Corporate Communications and Marketing Services. “GROWMARK is excited to support the Evans Endowed Chair in Ag Communications because this faculty position will advance such clarity through undergrad curriculum and professional education for all involved in this great industry. I know our investment will yield great returns.”