The Management Calendar€¦ · • Beef • Cow-Calf Budgets • Pre-Conditioning Budgets • Finishing Budgets • Stocker Steer Budgets • Stocker Heifers Budgets • Horse Budgets

Listed below are the items that should be considered for inclusion on the farm business managers' calendar for spring and summer of 2011:

• Half the business year will soon be behind us and a six-month financial record check-up is in order. Updating your records through the month of June allows you to quickly gauge financial progress by comparing the farm's actual expenses and income to your budgeted amounts. If you did not develop a budget, compare your mid-year expenses and income to half the items reported on your 2010 Schedule F. Flag any items that are different from budgeted amounts. These differences are not necessarily problems, just items that need to be examined and explained.

• Watch your line-of-credit and be sure to keep in touch with your lender. They all know

that we are in a time of uncertain returns. Yet, it’s just good business practice to keep them informed of major changes and that you are managing the situation.

• Production records for livestock and crops should be updated for the first half of the

year. Look for big changes from last year, and make sure to cross-reference these with production expenses.

• Even with the time constraints of summer activities, try to plan and hold regular staff

meetings with family members and employees to discuss work plans and set priorities for the next day/week. Consider brainstorming about alternative ways to deal with problems. Use some of the time to help discuss positive outcomes of previous plans, and recognize individuals for being creative and doing a good job.

• Checking your credit rating in July should become an annual event. Independence Day

should remind you that you should be independent from identity theft and credit mistakes. All individuals and business owners should annually check their credit rating. Additional information on your rights to access your credit report and links to the site for obtaining a free copy of your credit report can be found at the Federal Trade Commission’s (FTC) web site at http://www.ftc.gov/freereports. The FTC cautions consumers to make sure they use the correct site because there are “Imposter” sites.

University of Maryland Extension programs are open to all citizens without regard to race, color, gender, disability, religion, age, sexual orientation, marital or parental status, or national origin.

June 30, 2011 Volume 2, Issue 6

The Management Calendar  1‐2 

2011 Maryland Cover Crop Program  3‐4 

Crop Reports  5 

Upcoming Events  5‐6 

A Big Thank You!  7 

Did You Know  7 

In this issue

The Management Calendar Dr. Gordon Groover, Farm Management Specialist, Virginia Tech

Cont. pg. 2

Agronomy News - June 30, 2011 2

Selective information available that might be useful for summer reading or bookmarking:

• Updated Livestock Budgets: Virginia Farm Business Management Livestock Budgets were updated and posted at www.pubs.ext.vt.edu/446/446-048/446-048.html. Most of the budgets are in both MS Excel® and PDF versions. The major categories are as follows: • Beef

• Cow-Calf Budgets • Pre-Conditioning Budgets • Finishing Budgets • Stocker Steer Budgets • Stocker Heifers Budgets

• Horse Budgets • Dairy Budgets • Fence Budgets • Sheep and Feeder Lamb

Budgets • Goat, meat • Pork, niche market

• Want to understand the U.S. vegetable industry? Take a look at the USDA-ERS publication titled “Financial Characteristics of Vegetable and Melon Farms,” by Mir Ali and Gary Lucier published in February 2011 at www.ers.usda.gov/Publications/VGS/2010/12Dec/VGS34201/VGS34201.pdf.

• If you want to expand your knowledge on a variety of research findings from the Economic Research Service of USDA, then sign up for the “Charts of Note.” Once a day from Monday-Friday a graph or chart will be sent to you with a link highlighting one of their studies or reports. I find this a very useful tool to send me information I may not have looked for on my

own. Go to http://www.ers.usda.gov/Updates/ to sign up. This page has multiple subscription services, including Chart of Note.

• A must read for all of us involved in agriculture is the current issue of “Choices,” published by the Agricultural and Applied Economics Association and can be found at www.choicesmagazine.org/magazine/issue.php. This is a two-part series focusing on “Fundamental Forces Affecting Agribusiness Industries” and covers a variety of topics that are important to farmers, agribusinesses, and their advisors. Selected topics are as follows:

• Healthy Competition in the Animal Health Industry

• Fundamental Forces Affecting Livestock Producers

• U.S. Meatpacking: Dynamic Forces of Change in a Mature Industry

• Impacts of Product Differentiation on the Crop Input Supply Industry

• Market Forces and Changes in the Plant Input Supply Industry

• Forces Affecting Change in Crop Production Agriculture

• Increasing Coordination in the Plant and Plant Product Processing and Handling Sector

• The Changing Face of Food Retailing

• Considering growing produce or

vegetables? Getting realistic estimates of labor requirements and costs can be a difficult task. A short article by Tim Woods titled “Labor Expenses for Vegetable Production” and published in the “Economic and Policy Update” from the University of Kentucky,

Department of Agricultural Economics, and can be found at http://www.ca.uky.edu/cmspubsclass/files/EconPolicyUpdateMay2011.pdf.

• Wondering about profitable use of nitrogen in your hay fields, then take a look at Greg Halich’s paper titled “Profitability of Spring Hayfield Nitrogen Applications – 2011 Guide” (AEC 2011-04) is available at: www.ca.uky.edu/cmspubsclass/files/ghalich/ProfitabilitySpringHayfieldNitrogenApplications2011.pdf.

• Interesting article from the Richmond Federal Reserve on small business lending alternatives see: www.richmondfed.org/publications/community_development/marketwise_community/2011/vol02_issue01.cfm?WT.mc_id=110012.

• Looking for information on a broad range of demographic, economic, and agricultural data on rural areas across the United States? The Atlas of Rural and Small-town America, developed by USDA’s Economic Research Service, provides county-level mapping of over 60 statistical indicators depicting conditions and trends across different types of non-metro regions. To start searching see: www.ers.usda.gov/data/ruralatlas/atlas.htm#map

• Want to understand the breadth of the U.S. beef cow-calf production system? If yes, take a look at the USDA-ERS publication, “The Diverse Structure and Organization of U.S. Beef Cow-Calf Farms” found at www.ers.usda.gov/Publications/EIB73/.

Agronomy News - June 30, 2011 3

Sign-up Dates: June 21 – July 15 2011 Program Highlights:

• New Receive up to $100/acre to plant traditional cover crops ($45/acre base payment and up to $55/acre in add-on planting incentives)

• Receive $25/acre to plant cover crops for harvest; $35/acre if rye is used as the cover crop

• No acreage caps • Farmers select which acres to har-

vest in spring • Use one application to apply for

both traditional and harvested cover crop programs

• Cover crop contractor’s directory available online at http://www.mda.state.md.us/pdf/customseedserviceco.pdf

Why Plant Cover Crops Attractive reimbursement rates, easy en-rollment and consistent funding have made the Maryland Department of Agriculture's Cover Crop Program a popular conserva-tion choice for Maryland farmers. Last year, the program provided cost-share support for Maryland farmers to plant over 400,000 acres of cover crops on their farms to control soil erosion, reduce nutri-ent runoff and protect water quality in streams, rivers and the Chesapeake Bay. It was the largest cover crop planting in the program’s history and will go a long way toward helping Maryland meet tough new pollution caps for the Bay. Small grains such as wheat, rye and barley are planted as cover crops in the fall to improve the soil, recover unused plant nutrients remain-ing in crop fields and act as a ground cover to keep the soil from washing away during

the winter, when the soil would otherwise be exposed. Maryland’s Cover Crop Pro-gram provides farmers with grants to plant cover crops on their fields immediately fol-lowing the summer crop harvest. This year, farmers who plant traditional cover crops receive a base rate of $45/acre and up to $55/acre in add-on incentives for using highly valued planting practices. Harvested cover crops qualify for $25/acre with a bo-nus payment of $10/acre if rye is used as the cover crop. Certain restrictions apply. Sign-up Dates June 21 – July 15, 2011 at soil conserva-tion district (SCD) offices. Guidelines and Conditions

• Use one application to apply for tra-ditional and harvested options.

• Cover crops may follow a corn, soy-bean, sorghum, tobacco or vegeta-ble harvest.

• The planting deadline is November 5, 2011. Early planting incentives are available to farmers who plant their cover crops in October.

• Acres enrolled in the USDA Natural Resources Conservation Service cover crop program may qualify for additional MDA incentives.

• Rye, wheat, barley, canola, rape-seed, kale, ryegrass, spring oats, triticale, and forage radish may be used as cover crops.

• All seed purchased for cover crops must be tested and properly labeled in accordance with Maryland Seed Law and Regulations.

• Seed must be free of prohibited nox-ious weed seeds, have a minimum germination rate of 80 percent and have no more than 16 restricted

noxious weeds per pound. • If homegrown seed is used, it must

be tested prior to planting for purity, germination and noxious weeds by either the Maryland or Delaware State Seed Laboratory.

• Cost-share for seed testing is pro-vided at 50 percent (up to $15). The current year’s seed tag for all pur-chased seed must be attached to the fall certification.

• Certain restrictions for manure use in the fall apply; eligibility for incen-tive payments may be affected.

• Applicants must be in good standing with MACS and in compliance with nutrient management requirements.

Traditional Cover Crops Traditional cover crops may not be har-vested, but may be grazed or chopped for on-farm livestock forage after becoming well established. Kill-down/suppression may take place any time after March 1, 2012, but no later than June 1, 2012. Tra-ditional cover crops qualify for add-on in-centive payments if certain environmental guidelines are met. • Base Payment: $45/acre with add-on

incentives for using highly valued planting practices (see payment chart below)

• Acreage Cap: None • Manure Use: Yes, under special cir-

cumstances • Certification with SCD: Within one

week of planting and no later than November 11, 2011

• Killdown/Suppression: Between March 1 and June 1, 2012

2011 Maryland Cover Crop Program Maryland Department of Agriculture

Cont. pg. 4

Agronomy News - June 30, 2011 4

Harvested Cover Crops This program option is available to farmers who want to harvest their cover crops. Farmers should provide their best estimate of acres they plan to harvest on their appli-cations.

• Payment: $25/acre (Plus a $10/acre bonus if rye is planted as the cover crop)

• Acreage Cap: None • Fertilizer Application: After March 1,

2012 • Certification with SCD: Within one

week of planting and no later than November 11, 2011

The 2011-2012 Cover Crop Program is administered by the Maryland Agricultural Water Quality Cost-Share Program

(MACS) and funded by the Chesapeake Bay Restoration Fund and the Chesa-peake Bay 2010 Trust Fund.

Traditional Cover Crop Payment Options

No-Till Conventional Broadcast with Light, Minimum or Vertical Tillage

Aerial Broadcast Stalk Chop

Base Payment* $45/acre $45/acre $45/acre $50/acre $45/acre

Plant by October 1, add: or Plant by October 15, add:

$20/acre $10/acre

$10/acre $5/acre

$10/acre $5/acre

$0 $0

$0 $0

Plant fields where non-poultry* manure was injected or incorpo-rated in fall, add: or Plant fields where manure was used in spring, add:

$0/acre $10/acre

$5/acre $10/acre

$5/acre $10/acre

$0 $10/acre

$0 $10/acre

Plant in field with previous corn or vegetable crop, add:

$5/acre $5/acre $5/acre $5/acre $5/acre

Plant rye, add: $10/acre $10/acre $10/acre $10/acre $10/acre

Farm located in targeted water-shed, add:

$10/acre $10/acre $10/acre $10/acre $10/acre

Maximum Amount Payable $100/acre $90/acre $90/acre $85/acre $80/acre

*Restrictions apply

Agronomy News - June 30, 2011 5

Crop Reports

Western Cold and wet weather over the past two weeks has caused hay making to grind to a halt. Only about half of the first cutting hay has been harvested at this point. On the positive side, fields that have been harvested have excellent regrowth. Early planted corn is looking great with some fields approaching waist high heights. Later planted corn needs some heat and sunshine. Soybeans, for the most part, look great. Central Weather remains dry across the region, helping hay and small grain harvest. The moderated temperatures (low to mid 80s over the past week) have helped the corn and soybeans to recover slightly, but moisture is still needed. Localized heavy storms damaged some wheat. Barley harvest went well. Harvested hayfields and pasture are in need of moisture. Northeast The last two weeks have been very dry with little or no rain. Corn and soybeans are starting to show signs of stress. Barley harvest is winding down. Wheat harvest is underway. Farmers are delaying planting doublecrop beans until they get some rain.

Southern The main story continues to be moisture. Rain fell June 11-12 with showers occurring intermittently throughout the area. Rainfall has been variable, with some areas receiving totals of less than 1 inch and others getting over 6 inches. The much needed moisture came just in time for most of the corn crop. Tasselling started the weekend of the 11th and is continuing with about 40% of corn in tassel now. Corn fields remain very uneven. Farmers are now catching up on double crop soybean planting. Full season beans have responded well to the rain. Most beans planted in the drier conditions are emerging now. Wheat harvest has progressed well with reports of good yields and test weight before the rains. There is significant worm pressure (corn borer and armyworm) in most corn fields. It is easy to spot refuge corn acres in Bt fields. Grasshopper populations are building in soybean fields, but have not reached threshold in most areas. Additional rainfall will be needed soon. Upper Eastern Shore Most of the region is dry. Most of the corn either is or will be tasseling this week. Wheat harvest is finishing up with reported yields above average. Test

weights have been fair and vomitoxin levels low. Double crop soybean planting has ceased in some areas due to dry soil conditions. Grasshoppers and stinkbugs are present in many of the corn and bean fields. Spidermites are beginning to show up in some of the full season soybean fields. Most hay fields have been cut for the 2nd time and regrowth has slowed due to reduced moisture. Lower Eastern Shore Isolated and scattered thunderstorms have brought much needed rainfall to the Lower Shore. However, conditions remain very dry and burn bans are in effect. Wheat harvest is complete and early reports indicate good to excellent yields. Double crop soybean planting has been on hold due to dry conditions, but has resumed where rainfall has occurred. Corn is beginning to tassel and rated fair to good but is showing signs of stress. Some grasshopper and spider mite infestations have been reported in soybeans, but overall disease and insect pressure is light.

Upcoming Events

Potato Twilight Meeting on July 26th University of Maryland Extension will conduct a potato twilight meeting for growers on Tuesday, July 26th from 6.00 pm – 7:00 pm at East New Market Rhodesdale Rd, Hwy 14 near North Dorchester High School in Dorchester County Maryland. This meeting will provide an opportunity to observe potato

genotype and variety research plots and potato crop modeling research for managing irrigation and production. Interact with University of Maryland Extension specialists and USDA researchers at the site. Materials and refreshments will be served. Please contact Rhonda Barnhart for registration and more information at 410-228-8800 or [email protected].

Cont. pg. 6

Agronomy News - June 30, 2011 6

Maryland Commodity Classic Hosts: Maryland Grain Producers Association and Maryland Soybean Board Date: Thursday, July 28 Events: AM field research tour at Wye Research and Education Center; afternoon program at Queen Anne’s 4-H Park. Keynote speaker: Orion “The Big O” Samuelson, the best known agriculture broadcaster in the country Information: Contact Maryland Grain Producers Association or Maryland Soybean Board Grain Marketing for Women on July 28th Have you wondered where to get information about grain markets and what terms like options, futures and basis mean? This workshop will introduce grain marketing basics with topics such as finding grain marketing information, crop budgeting, and pricing tools. We will then use a hands-on-approach in writing and implementing a grain marketing plan. Cost: $10 per person and includes breakfast and materials Date: Thursday, July 28th 8:30 am.– Noon Chesapeake College, Wye Mills, MD Economic Development Center - Room 27 To register contact 410-758-0166 or email at [email protected] Aronia Twilight Tour on August 23rd Aronia (Chokeberry) is a new alternative crop which has high concentrations of flavonoids and several nutraceutical qualities. University of Maryland Extension will conduct a Twilight Tour of the Aronia research orchard on August 23rd, 5.30 pm at Wye Research and Education Center, 211 Farm Lane, Queenstown MD, 21658. Participants will learn about highly nutritive Aronia berries; varieties and yield; plant densities and propagation; cultural and production methods; fertility practices; and

experience ripe Aronia fruit. The event is free, however, registration is requested. Please contact Debby Dant: 410-827-8056 X 115, [email protected], if you need any additional information and/or to register. Mid‐Atlantic Precision Agriculture Equipment Day Please join us and learn how to make precision agriculture pay in your operation. Among the practical and informative presentations that will be given are sprayer and planter section control, variable rate seeding, the economics and practical implementation of RTK and GPS, soil mapping, using technology for on‐farm research, and developing variable rate prescriptions. Tuesday, August 30, 2011 8:30 a.m. ‐ 4:30 p.m. Caroline County 4‐H Park 8230 Detour Road Denton, MD 21629 Speakers include:

• Dr. Randy Taylor, Oklahoma State University

• Dr. John Fulton, Auburn University • Dr. Mike Buschermole, University of

Tennessee • Dr. Matt Darr, Iowa State University • Dr. Bobby Grisso, Virginia Tech

DE and MD Nutrient Management Credits & CCA credits will be available For more information please contact: 410‐228‐8800 or 410‐758‐0166 www.mdcrops.umd.edu Farm Estate Planning Workshop on September 7th This workshop is for farmers and owners of rural land. In addition, individuals involved in farm estate planning, businesses that provide services to farmers, and state and

local government employees will all find this workshop helpful. Cost: $10 per person (includes lunch and materials) Date: Wednesday, September 7 8:30 am Registration 9 am - 1 pm Workshop Chesapeake College, Wye Mills, MD Higher Education Center - Room 110 To register contact 410-758-0166 or email [email protected] 2011 Horse Pasture Walk Series Visit the Equine Rotational Grazing Demonstration site at Central Maryland Research and Education Center for a tour of the pastures and an explanation of current management practices. Each pasture walk will feature a special presentation on a different pasture management issue of interest. These events are free, but advanced registration is requested. Educational materials will be provided, and refreshments will be served. All events are rain or shine. July 21, 2011 6:00 pm—8:00 pm Weed Identification and Control What weeds are common in horse pastures and how can you control them? Develop your skills in weed identification and learn which weeds are toxic. Registration Information To register for horse pasture walks simply RSVP to Jennifer Reynolds at [email protected].

Upcoming Events

Agronomy News - June 30, 2011 7

SIGN-UP TO RECEIVE “AGRONOMY NEWS” If you would like to receive this newsletter via email please contact Rhonda Barnhart at [email protected]. The subject line should be: Subscribe Agronomy News 2011. If you would like a hard copy please contact your local county extension office to sign-up for the mailing list. The list of local county offices can be found at www.extension.umd.edu.

This edition of Agronomy News is brought to you by: University of Maryland Extension Field Faculty: Ben Beale, Ag & Natural Resources Educator, St. Mary’s County Deborah Patrick, Nutrient Management Advisor, Baltimore County Jeff Semler, Ag & Natural Resources Educator, Washington County Jim Lewis, Ag & Natural Resources Educator, Caroline County Richard Nottingham, Ag & Natural Resources Educator, Somerset County Stanley Fultz, Dairy Science Educator, Frederick County Sudeep Mathew, Ag & Natural Resources Educator, Dorchester County William Lantz, Ag & Natural Resources Educator, Garret County University of Maryland Extension Specialists: Dr. Robert Kratochvil, Agronomic Crop Production University Partners: Dr. Gordon Groover, Farm Management Specialist, Virginia Tech

Did You Know

U.S. growers and agribusinesses only receive 12% of each dollar spent on food while approximately 33% of the food dollar represents energy, transportation and packaging costs

Agronomy News is published by University of Maryland Extension, Ag & Natural Resources Profitability Impact Team. Sudeep Mathew, Editor Agronomy News subscriptions are free on the internet at: www.mdcrops.umd.edu To subscribe or more information: Agronomy News University of Maryland Extension 501 Court Lane, Room 208 Cambridge, MD 21613 410-228-8800 Email: [email protected]

A Big Thank You!! Maryland Grain Producers’ Utilization Board and Maryland Soybean Board are both recognized for their financial contributions that support the publication and distribution of this newsletter. This is another example of the “checkoff dollars” at work.