www.azfb.org JULY, 2008 Volume 61 No. 7 Official Publication of the Arizona Farm Bureau U.S. Agricultural Outlook – A Bright Picture; Arizona A Bit Dimmer By George Frisvold, Professor of Agricultural and Resource Economics, University of Arizona T raveling through Spain last month, I was struck by the vast expanses of wheat growing everywhere. Last month in western Tennessee and Mississippi – an area I usually associate with cotton – there it was again: wheat, wheat, wheat. In Arizona, USDA forecasts that growers will plant nearly double the amount of wheat in 2008 that they planted in 2007. Arizona wheat acres are expected to exceed cotton acres for the first time since 1976. Growers in Arizona and worldwide are responding to market signals as USDA forecasts wheat prices may be as high as $8.25 per bushel this BILLIONS year. Strong In wheat prices along with high prices for many other agricultural commodities bode well for U.S. farm income. The 2008 outlook for the U.S. farm economy as a whole looks bright indeed. Since spring of 2004, wheat prices have tripled, corn, sorghum, rice and soybean prices have doubled, and cotton and hay prices have risen more than 40 percent. Because of high prices, USDA forecasts net cash income on U.S. farms will reach an all-time high of $97 billion. This, in spite of record high production expenses from fast-rising prices for fuel, feed, and fertilizers. U.S. agricultural exports are projected to top 2007’s all-time record export sales. The U.S. agricultural trade surplus, falling in recent years, is projected to double, reaching its highest level in 12 years. While many in urban America are struggling with debt and suffering from the downturn in the economy and real estate markets, the agricultural sector Wheat may be Arizona agriculture’s brightremains in relatively good shape. Farm est spot in the mix of crops and livestock. business solvency is expected to actually improve in 2008 with farm debt-asset ratios projected to fall. Interest rates on farm loans are expected to decline as lending to agriculture appears a safer investment than other options. So far, problems in the housing sector have not hurt demand for farmland, with double-digit increases expected. Farmland and building values per acre, which rose by 13 percent in 2007, are forecast to grow nearly 15 percent this year. Will Arizona Fare As Well as the National Average? While the national picture for agriculture looks bright, the recent devastating floods in the Midwest show that national averages can be a poor indicator of how individual regions or producers will fare in 2008. All regions are not benefiting equally from the recent run-up in prices and Arizona agriculture in particular may not fare as well as national averages suggest. First, let’s look at net All regions are not benefiting equally returns. The biggest gains from the recent run-up in prices and are projected for corn, soybeans, and rice, with net Arizona agriculture in particular may returns ranging from $350 not fare as well as national averages to $450 per acre. Yet, corn suggest. is a minor crop in Arizona, while rice and soybeans aren’t grown here at all. Wheat net returns are forecast below $200 per acre, up from $50 per acre two years ago. Cotton net returns are forecast to be $150-$175 per acre, only a modest improvement over the last two years. Second, prices for vegetables and melons, which account for over a third of Arizona’s agricultural sales, have not risen the way field crops have. In fact, spring prices for lettuce, cucumbers, and broccoli are all down from a year ago. Lettuce prices have fallen 50 percent. Even rising prices can be a mixed blessing. In February and March, cotton futures prices rose sharply then went through wild oscillations. Futures prices became so out of synch with actual cash prices and market fundamentals that cotton merchants discontinued offering forward contracts. Because merchants were unable to use futures See AGRICULTURE OUTLOOK Page 7 High Input Costs Lead Agriculturalists to Review Production Strategies By Julie Murphree, Arizona Farm Bureau T PERIODICALS oday’s media spin puts farmers and ranchers basking in the lap of luxury because of higher farm commodity prices. In reality, though several agriculture commodities are up in price, input costs, such as fertilizer and fuel, are leading Arizona farmers and ranchers to review their agriculture production strategies and make changes where needed. “The USDA puts the farmer’s share of today’s food dollar at 19 cents,” says Kevin Rogers, Arizona Farm Bureau President. “Those 19 cents cover increased costs associated with fuel and other production expenses. My fertilizer costs have more than doubled to over $700 per ton and fuel has doubled in the last two years. Diesel fuel typically runs about 50 cents more than gasoline. So we’re just not seeing the windfall with agriculture commodities so many talk about.” Imagine annually buying 18 million bushels of corn as Pinal Energy’s John Skelley does and watching corn prices spike by 85 cents per bushel in one week because of the Midwest floods. General manager and president of the ethanol and dried distiller grains plant, Skelley points out that livestock operations are feeling the pain too. “Anyone buying corn or corn-based products is seriously suffering in this market.” Arizona Agriculture reached out to farmers and ranchers across the state and asked them how today’s high input costs have influenced their agriculture production strategies for the year. Paul Palmer continues to evaluate production opportunities in both crops and cattle and decide what works best with his agriculture mix. Paul Palmer Arizona Farm Bureau’s Second Vice President Cattle, Sorghum, Barley and corn We’ve shifted more acres to sorghum instead of corn because of high fertilizer costs - though weather has been a factor too. We can use a little less fertilizer and a little See PRODUCTION STRATEGIES Page 4 The Legacy of a Leader - Page 2 Jake Flake Made a Difference. Big Picture- Page 5 Don’t Be a One-Issue Person. Agriculture Blogs - Page 6 Blogs Connect Producers and Consumers. www.azfb.org 2 ARIZONA AGRICULTURE • JUlY, 2008 FBL Financial Multi-line agent of the Month - May, 2008 CHIP WODRICH, LUTCF Chip Wodrich joined the Farm Bureau family on March 1, 2005. An agent with the Town & Country Agency, Chip works out of the Buckeye office on Highway 85. One Man—A Difference Can Make Congratulations Chip! By Kevin Rogers, Arizona Farm Bureau President I t was a long week for the Flake family of Snowflake, Arizona. Senator Jake Flake had passed away of a heart attack on Sunday, June 8th. Two weeks earlier he had been thrown by a horse and broken multiple ribs. Part of the price paid for being a cowboy. His widow, Mary Louise and their family traveled to Phoenix on Wednesday for a memorial service and allowed a who’s who of Arizona’s political family to share in her and her family’s loss. On Friday, many of the same folks including my family, attended services in Snowflake to say our final “good bye”. A common theme at both services held in Jake’s familiar surroundings of his beloved LDS Church, was of a man who practiced his faith every day, treated all equally, had country honed humor and common sense, put family above all else and understood the needs of agriculture and rural Arizona. Six sons eulogized their father. Sisters, daughters and grandchildren told stories, read scripture and played a medley on the violin that ended with a Mozart sounding rendition of the Sons of the Pioneers’ “Happy Trails to You”. The Flake Family Choir, all 12 of the children, 55 grandchildren, 16 spouses and one great grandchild stood and sang “He Sent His Son”. I heard it said many times throughout the week, “there will never be another Jake Flake”. Thanks Jake for your service to Arizona, especially agriculture and your rural roots. You are an example of how one person can make a difference and an inspiration to current and future leaders. Being the cowboy he was, I think Jake would tip his Stetson and say thanks and then turn and add, “let’s keep this herd movin’.” Jake understood that with the large populations of Phoenix and Tucson, rural Arizona is a minority in the political arena. It takes brave and committed men and women to step up and represent a rural constituency that is outnumbered by urban representatives. Jake faced and accepted that challenge and never looked back. I think he would challenge many who read this publication to seek service above self. Jake Flake was taken from us too soon but that is the will of a higher order. Those of us in agriculture should, as a testimony to Jake, commit ourselves even deeper to our industry and to those rural roots we and Jake cherish. Jake’s son Doug, who turned cowboy poet for his dad’s funeral, wrote: AHWATUKEE 10201 S.51st St., #180 480-753-7251 pEORIA bagdad 7992 W. Thunderbird Rd. #C 623-889-7420 buckeye 15396 N. 83rd Ave., Bldg. F 623-334-6240 25560 W. Hwy. 85, #1 623-327-2337 22601 N. 19th Ave. #106 623-434-8092 bullhead city 10240 N 31st. Ave. 602-997-6633 casa grande 3005 N. Hwy. 89 928-778-9350 311 N. Miller Rd. 623-935-6209 phoenix 2071 Hwy. 95, Ste A 928-763-8464 408 N. Sacaton, Ste. E 520-836-2511 chandler 3002 N. Arizona Ave., Ste 22 480-833-8718 coRNVILLE 10990 E. Cornville Rd., #H 928-649-0665 east mesa 4447 E. Broadway, Ste. 104 480-924-2520 flagstaff 5200 Cortland Blvd., Ste. E120 928-527-1384 1750 S. Railroad Springs Blvd., #8 928-527-1343 County Corner: Greenlee glendale 17235 N. 75th Ave., #C100 623-979-4186 By Liz Foster, Arizona Farm Bureau goodyear G reenlee County Farm Bureau has continued to be a supporter of the youth in the community through donations to the Junior Livestock Association for 4-H and FFA show animals. Secretary, Kim Lunt, has continued to work this year on rural development issues and attended a conference this year in Flagstaff at the invitation of the conference organizers. 3673 S. Bullard Ave., Ste. 101 623-925-0190 higley/GILBERT 325 S. Higley Rd. 480-635-3860 4365 E. Pecos Rd., #142 480-354-7654 kearny Greenlee County Board 356 Alden Rd. 520-363-9700 President: Terrol Lunt Vice President:Keith Hansen Secretary/Treasurer:Kim Lunt Directors: Larry Barney, Wilber Lunt, Bob Strong, Ray Tyler Farm Bureau Women’s Chair: Linda Merrell Membership Chair: Dean Lunt Linda Merrell and Benny Aja host state Senator Victor Soltero from District 29 during the 2008 Legislative Ag Fest. 102 W. Roundup Rd. #B 928-474-1775 109 Main St. 928-633-4060 1759 E. Villa Drive, #113 928-649-8686 Jake’s job is done, but ours is not. God bless Mary Louise, Jake’s entire family and all of us who hold his memory dear. 1212 Kofa 928-669-2437 payson AVONDALE 13055 W. MCDowell, #G112 623-536-1364 cottonwood “The Foreman calls your job’s done well you good and faithful hand We need you now, bring boots and rope, come work another land Your next top horse already there, your hat a crown of sun, The waiting hands all set to work till the Foreman says “Job’s done”. parker prescott 111 Park Ave. 928-445-5545 queen creek 22632 S. Ellsworth Rd. 480-457-1094 safford 620 S. 1st Ave. 928-428-4618 scottsdale 14300 N. Northsight Blvd.#116 480-607-5551 7650 E. Redfield, Ste. D-234 480-483-8787 showlow 810 E. Duece of Clubs 928-537-2990 tEMPE 8631 S. Priest Dr. #101 480-496-0400 tucson 6592 N. Oracle 520-531-0300 6464 E. Grant Rd. #150 520-885-3083 wickenburg 82 N. Valentine St. 928-684-6895 wilCOX 365 Haskel Ave. 520-766-3276 williams 128 W. Grant, Ste. A 928-635-2181 kingman 3518 N. Irving St., Ste. A 928-757-5555 2404 Stockton Hill Rd. 928-854-6457 lake havasu city yuma 350 W. 16th St., #108 928-782-1638 242 W. 28th St., Ste. J 928-341-0000 500 N. Lake Havasu Ave., #D102 928-453-6767 • 928-854-6457 2170 W. 24th St.,#104 928-782-0012 mesa 3007 S. Ave. B, Ste B 928-539-3276 1012 S. Stapley Dr., #114 480-649-0260 6642 E. Baseline #104 480-840-6543 1925 S. Sossaman Rd. #210 480-272-7754 Board members and delegates attended the Arizona Farm Bureau annual meeting in Cave Creek and were recognized for their work and dedication to Farm Bureau. Linda Merrell was elected to the Arizona Farm Bureau Board of Directors as Women’s Director at the state annual meeting in November. Also at the annual meeting, Farm Bureau member Henley Pelto was recognized with one of the Arizona Farm Bureau Environmental Awards for his work with Phelps Dodge and a reclamation project where he grows acres of hybrid sorghum to use in the reclamation project that was incorporated into the soil. The project also required that Pelto pre-level several old mine sites. See COUNTY CORNER Page 7 The Voice of Arizona Agriculture 325 S. Higley Rd., Suite 210 • Gilbert, AZ 85296 • 480.635.3600 • fax 480.635.3781 • www.azfb.org OFFICERS President • Kevin Rogers, Mesa 1st Vice President • Tim Dunn, Yuma 2nd Vice President • Paul Palmer, Elfrida Exec. Secretary • James Klinker, Mesa EXECUTIVE COMMITTEE Rock Cramer • Parker DeWayne Justice • Waddell ARIZONA AGRICULTURE STAFF Arizona Agriculture (ISSN 0274--7014) is published Julie Murphree, Editor monthly by: Peggy Jo Goodfellow, Advertising Arizona Farm Bureau Federation Please send comments to: 325 S Higley Rd., Suite 210 [email protected] Gilbert, AZ 85296 For advertising, e-mail [email protected], call Periodicals postage paid in Higley, 480.635.3609 or visit www.azfb.org/publications.htm Arizona and additional mailing offices. POSTMASTER Send address changes to: Arizona Agriculture 325 S Higley Rd., Suite 210 Gilbert, AZ 85296 Subscriptions are included in annual dues. www.azfb.org ARIZONA AGRICULTURE • JULY, 2008 3 One of Arizona’s Finest Agriculture Leaders Will Be Missed By Julie Murphree, Arizona Farm Bureau S tate Sen. Jake Flake, (R)-District 5, died at his Snowflake home last month when honoring the Senator, the last of many handwritten notes the two ranchers shared over he suffered a heart attack while attempting to get up from the years. “You gave away more than you took. That’s why you leave so much bea fall. Flake had been recuperating from being thrown hind.” from a horse about two weeks prior that broke multiple ribs. Chief Administrative Officer for Arizona Farm Bureau Jim Klinker said, “A family Flake, 72, has served in the Arizona Legislature since 1997, has lost a father, Mary Louise a husband, Arizona a statesman, rural Arizona a chambeginning with the state House of Representatives. He was pion, agriculture a friend and to many of us a mentor.” the speaker of the House for 2003/04. He had served in the Cattle rancher by trade, many consider Flake one of Senate since January 2005. the last of the famed cowboy legislators. Born in Snowflake, a town founded by his greatAn Arizona State University graduate of class 1960, grandfather, Flake was a constant supporter of agriculFlake worked on his father’s ranch in Snowflake, eventuture and rural Arizona. Countless in agriculture and ally purchasing the operation with three of his brothers, the rural communities will miss Flake’s leadership. Dean, Jed and Steve. Together, they expanded it into one Said Arizona Farm Bureau President Kevin Rogers, “Senof the most successful cattle operations in the Southwest ator Flake has been a leader for rural Arizona for decades. United States—owning or leasing ranches and marketing He served on the Arizona Farm Bureau Board in 1970 and bulls and heifers throughout the Southwest and Mexico. has served Arizona farmers and ranchers ever since. He Flake’s Legislature Web page states he had always felt was a man with high moral standards and a voice of coma duty to give back to his community. In addition to his time mon sense. He has been my friend and will be missed. with the Legislature, Flake also served as a board member Our thoughts and prayers go out to Mary Louise and the and president of two school boards, an irrigation district, entire Flake Family.” a hospital operating board and the Farm Credit Servic“You provided so much to your family, your friends, es board of directors among many other achievements. your community, agriculture and our state,” said Arizona Flake is survived by his wife of nearly 49 years, Mary Cattleman’s Association’s Bas Aja, reading from a final Louise, 12 of 13 children and 55 grandchildren and one Senator Flake attended the 2008 AZFB Ag Fest seen here letter he wrote to Flake at last month’s memorial service with former YF&R state chair Ana Kennedy. great-grandchild. Food Bank Campaign Continues Through July A rizona Farm Bureau is continuing the summer sponsorship challenge. We’re encouraging you to donate $90 (or donate whatever amount you wish) to St. Mary’s Food Bank Alliance in the months of June and July. Simply go to www.azfb.org and look for the St. Mary’s Food Bank logo and click to make your online donation. For every $90 donated, Hickman Family Farms will donate $10 worth of eggs to bring the donation to $100. Let’s make Hickman Family Farms donate lots of eggs! Join the challenge. Donate $90 to St. Mary’s Food Bank and feed one child for the Summer by going to www.azfb.org and clicking on the St. Mary’s Food Bank Alliance logo. So join the campaign and sponsor a child this summer for $90 (or for whatever amount you wish). Remember too, produce donations are taken. Contact Julie Murphree at 480-635-3607 if you have further questions or would like to donate agriculture products. www.azfb.org 4 ARIZONA AGRICULTURE • JULY, 2008 Production Strategies continued from page 1 less water with sorghum. Between weather and inputs the sorghum is looking very attractive. We have to know our costs and even though certain agriculture commodity prices are good, this time next year could be a different story. Palmer highlighted that today it’s more important than ever before that agriculturalists really evaluate their costs and hunt for production efficiencies or cost-cutting methods that allow them to really maximize on their bottom lines. Rock Cramer Arizona Farm Bureau Board member Vegetables and fruits Of course higher fertilizer prices have had a direct impact on operating costs and bottom line for the Vicksburg partnerships says Rock Cramer. On the matter of shift in production strategy as a consequence of these high costs, he says, “Probably not. We have the luxury of using less fertilizer than most because we spoon feed through drip irrigation based on petiole samples. Sulfuric acid that has increased over 600% in two years really hurts, however. “Our crop mix shifts have more to do with rotation, water availability and contracts on the commercial land side. The greenhouse, where water and fertilizer costs are little more than pocket change (compared to other costs) is looking better and better as this commodity price balloon continues.” Young farmer Nathan Arp averaged 3.89 bales of cotton in the 2007-2008 growing season in Maricopa, and his cotton averaged 3.3 in Eloy. Anticipating higher energy and fertilizer costs for the long haul, Rock Cramer suggests the other costs associated with greenhouse production look like pocket change in comparison. Nathan “Gator” Arp Cotton Farmer I’m not going to change my plans that much on how I currently farm. Cotton is still my main crop. One thing I’ve done is to switch from 6-row to 12row equipment. By doing this alone I will replace one laborer, use less fuel, and also one less tractor. The second area I have implemented with the help of Lee and Ryan Tregaskes deals with petioles and tissue samples on all crops. By watching this, it has reduced any excess fertilizing which reduces costs. This year because of fuel prices I will only cultivate one time after planting to open up my rows to allow better water management. Weed management will be controlled with roundup after each watering to replace the cultivator. My thinking here is that on my farm each time I cultivate and follow with water, a new crop of weeds comes up. John Boelts Yuma County Farm Bureau President and Arizona Farm Bureau Board Member Wheat, vegetables and cotton For the Yuma area expect to see continued record acreages of Durum Wheat due to record-high wheat prices. However, meeting the contract-mandated protein levels at harvest is only achieved by the use of large quantities of nitrogen fertilizer being applied through the growing season and proper termination. With record nitrogen prices the price of producing the durum is very high and therefore justifies the higher prices. Ultimately, it makes growing the crop feel like a highJohn Boelts anticipates restakes poker game - make yields that pay the fertilizer cord acreage plantings of Durum Wheat in Yuma because bill or bust! of market prices. On another note, not all commodity prices are high. While we watch corn, soybeans and wheat continue to spike, we see fresh-market crops - like melons and vegetables-stagnate or sink in price in the face of the same record fertilizer prices. The cost of doing business in this country is on the move up. So, if prices don’t rise and the producer cannot control the cost of his inputs, like any businessman, we all turn to the aspect of our budgets we can control. The current reality of a business is that it’s far more capital intensive. In this climate, Vegas craps might look like child’s play. Jim Graham Cochise County Farm Bureau President and Arizona Farm Bureau Board member Pistachios and Wine grapes The price of our pistachio crop is influenced by factors that are similar in some respects and different in other respects to traditional commodities produced in Arizona. Much of the U.S. pistachio crop is exported to Europe and Asian countries. The weak dollar has attracted foreign buyers to purchase U.S. pistachios and a damaging frost in Iran (which is the world’s largest producer of pistachios) has reduced the potential supply. The combination of these factors has driven up expectations for higher prices in the U.S. pistachio market. While managing a pista As a permanent crop, pistachios do not ordinarily chio orchard has different compete for acreage with feed grain, oilseed, and fiber management concerns, Jim Graham and other crops. Once a pistachio orchard is planted, it can be expistachio producers have pected to remain in production for decades. The current to compete for supplies of excitement in traditional crops does not directly influfertilizers, chemicals, and fuel. ence pistachio prices. However, pistachio producers do have to compete for supplies of fertilizers, chemicals, and fuel that we need for typical management practices. As far as management practices that we have changed under these circumstances, there are not a lot of reductions we can do that will not negatively affect our production. Most of the adjustments we are making are simply fine tuning our management. We are closely monitoring water requirements and managing our irrigations to match demand. Nitrogen applications are being scheduled carefully for efficient use during kernel fill. We have switched to generic glyphosate to reduce herbicide costs, and although generic prices have experienced a significant increase this year, they are still less expensive than brand name products. We are trying to maintain our fuel supply tanks at least half full so that we never have empty tanks to fill with higher priced fuel, although this is sort of like cutting off the dog’s tail one inch at a time. Steven Bales Arizona Farm Bureau Board member Hay and Feed grain The short answer: YES. The higher commodity prices allow me to grow rotation crops that have the possibility to make a profit for the first time in many years. I will now be able to rotate more alfalfa acres into a rotational crop as opposed to just using summer fallow as my rotation. (For example: wheat, barley, sorghum, sudan, oats) Because of high diesel costs we are trying to cut down on tillage everywhere possible. That means we are trying more low and minimum tillage type pracAs with other farmers, tices. Steven Bales is applying I am looking for crops that have a lower fertila multiple array of strateizer demand and utilize the nitrogen in the soil from gies to improve efficiencies and hopefully reduce input the alfalfa previously grown there. I grew barley this costs. past winter and look to do the same this coming winter since barley uses less nitrogen than wheat. I also plan to plant cotton into the stubble (minimum till). I am growing sudan grass this summer instead of sorghum for silage. Sudan will use less fertilizer and I can use my own harvesting equipment. With alfalfa prices very strong, I think the sudan market will be good this winter as well. I am also looking to purchase equipment that will help me minimize trips across fields; i.e. equipment that can do multiple tasks with one trip across the field. I estimate at today’s fuel prices the diesel alone will cost $20 more per acre for what I would call normal tillage practices. Clyde Sharp highlights the importance today that farming and ranching must work smarter, not just work harder. Clyde Sharp Vice Chair for Calcot, board member of Arizona Cotton Growers, first vice chair of Cotton Council International, and western region vice president of American Cotton Producers Cotton, wheat, alfalfa and seed crop Yes. On several fronts. We’re taking a harder look at doing more minimum till or reduced till. For example, after harvesting the wheat we’re burning the wheat stubble because it takes a lot of nitrogen fertilizer to decay the wheat straw plowed into the ground. I much prefer putting the wheat stubble back in the ground but the high cost of fertilizer and energy is forcing us to burn. And, the burning does allow us to kill some weed seed. Also, we’re using a no-till planter to plant sudan grass used as a cattle feed. Again we’re reducing tilling. Also - something we’ve never done before this year -we’re going to plant some fall Milo. If it works, we’ll do more in the future. See PRODUCTION STRATEGIES Page 5 ARIZONA AGRICULTURE • JULY, 2008 www.azfb.org 5 Production Strategies continued from page 4 Done a little bit before high energy and fertilizer costs became the norm, we’re also taking the rows left over from produce and planting cotton on these same rows, again to do minimum till work. Finally, we’re even looking at non-traditional solutions like using soil conditioners and adding fumic acid and enzymes into water to open up our soil more so that fertilizers and plants work more efficiently. The high-cost of fertilizer warrants more analysis of these non-traditional practices to make our farming as efficient as possible. I’ve done enough experimentation on some of this that it looks promising. Most of these practices are long-term changes. I don’t see prices on energy coming down any time soon. I just got back from a trip to China, and the whole country is short on diesel. They’re so short, they’re limited on the amount of diesel they can put in their fuel tanks. As a result, drivers must fuel up multiple times before they get to their final destination. And if my prediction holds true on high input costs for some time, we’ll also investigate drip irrigation to save water. In the past, agriculturalists have had a tendency to work 24/7 and we had the idea that farming and ranching is all tied up in simply working hard. Now, it’s not so much about working harder, but working smarter. The farmer or rancher is going to be successful if he or she pays more attention to input costs and types of inputs. Plus, constantly pay attention to your inputs and to your crop mix. If today’s farmer gets caught up in being a laborer, he’ll miss some fine points to improving his agriculture strategy. In today’s environment, it’s all about being a strategic thinker on behalf of the business. Dan Thelander Arizona Cotton Growers’ Vice President, Arizona Farm Bureau Water Committee Chairman Cotton, Wheat, Alfalfa As most farmers do when making decisions of which crops to plant or taking on additional land to farm, I try to estimate the gross income from the crop and the gross expense to produce it, leaving a profitable (hopefully) bottom line. If the gross income resulting from a higher commodity price more than offsets the higher input costs, (fertilizer and fuel, for example), then that is a positive and becomes a good option. It is always a mistake to only focus on high inputs and cut back on them solely to save money in the short term, Dan Thelander highlights a concern that as agriculture because that will most often result in a lower bottom line commodity supplies rise at the end of the crop. and prices drop, will input One pitfall with the higher commodity prices is that costs drop as well? many times we forward contract the crop, but cannot lock in the fertilizer and other input costs. They are rising at unbelievable rates. It also concerns me that as crop prices rise, U.S. farmers and those around the world figure out ways to respond to increased demand and produce more. When supply catches demand, as it always does, and commodity prices drop, will input prices drop as well, or as fast? That is a dangerous trap that will be hard to avoid. Let’s Look at the Big Picture and Find Solutions By Paul Brierley, Arizona Farm Bureau W henever two or more people talk issues, there will always be some point of contention. That’s just the way it is. No two people can ever agree on 100 percent of the issues all of the time. This is certainly true in politics. All we have to do is look at the ongoing Presidential election, where we hear comments like “I’m not going to vote for my party’s nominee because he’s not with me on [insert your hot-button issue here]!” The hot-button issue could be immigration, taxes, gun rights, free trade… I could go on and on. If I agree with 85% of the stands my party’s candidate takes on the issues, am I really helping myself if I work against him or her because we don’t see eye to eye on an issue of importance to me? Am I going to be pleased with the other candidate, who I agree with on 15% of the issues? Maybe I need to step back and realize that I need to support the candidate who will most closely represent my beliefs, even if we disagree on an issue or two. Yet somehow, we tend to think that when we join an organization – be it a political party or the Farm Bureau – the organization is going to be on our side with every issue. And watch out if the organization deviates on one of our hot-button issues! I absolutely respect every person’s right to their own opinion on each issue. In fact, debating the issues – and especially their solutions -- is what keeps our political system healthy. When I say “debate” I have something different in mind than what we see every day on the cable news shows. There was a time in this country when healthy debate was the hallmark of this system we call a representative democracy. The debates of yester-year advanced the issues, illuminating areas of both agreement and disagreement. To debate someone was to intelligently discuss the pros and cons of an issue, hopefully swaying them to your side of thinking in the process. The debates of today have degraded to little more than shouting matches, where you win by attacking or berating the other side. We can do better than that. I am proud to say that Farm Bureau’s Policy Development process brings out the best qualities of debate. Policy Development is part of an annual cycle at Farm Bureau where the grassroots members – agricultural producers – bring forth the issues that are troubling them. Through healthy discussion and yes, even debate, the problem is defined and a solution is formulated. Is the resulting policy exactly what the person had in mind when they started the discussion? I guarantee it’s not. Farm Bureau is a general farm organization, with lots of diversity (regional, commodity, age, size of operation, etc.). It’s hard enough to come up with county policies to satisfy everyone, let alone state and national policies. But finding and implementing solutions at the county, state and national levels is something that Farm Bureau has done for nearly 90 years – and we do it well. Our mission is to improve agriculture’s bottom line, and we work hard on that every day. Will we be with you on every issue? Nope. Will we be with you on most issues? You bet we will. Can we succeed without you? Absolutely not. So please, get involved with your county’s PD process this summer and make your voice heard. With thoughtful debate, you can be assured that the results will reflect what’s good for production agriculture. For details on your county’s policy development meetings, please contact Bridgette Crosby at (480) 635-3606 or email her at [email protected]. Upcoming Farm Bureau Policy Development Meetings July 8 Yavapai 5:00 pm Orme Ranch July 15 Coconino July 16 Yuma July 17 Mohave July 22 Maricopa - East Mayer Call Ann Stewart at 928-445-5545 for directions 6:30 pm Denny’s 2550 W Route 66 - Williams 12:00 pm Booth Machinery 6:00 pm Calico’s Restaurant 11:30 am Mi Amigos 1264 S. Gilbert Rd.– Mesa July 23 Maricopa - West 11:30 am Arturo’s 13290 W. Van Buren – Avondale Aug. 6 Yuma 5:30 pm Booth Machinery 6565 E 30th Street - Yuma Aug. 12 Pinal 6:30 pm Ricardo’s Restaurant 821 E Florence - Casa Grande Aug. 27 Navajo / Apache 7:00 pm Gerald and Arlene Flake’s Residence 1020 W. Flake Ave – Snowflake 6565 E 30th Street - Yuma 418 W. Beale – Kingman 6 www.azfb.org Blogs Connect Producers and Consumers Think blogs are just for angsty teenagers? Think again. By Chelsea Good, Intern for the American Farm Bureau Federation B logs have many real world applications, particularly in the agriculture industry. They may even be useful in forging a stronger link to connect producers and consumers. Just two years ago, ConAgra Foods used consumer “blog buzz” to recognize the low-carb trend was fading and adjusted its business plan accordingly. Many industry leaders turn to Ag Wired Blog for the latest agriculture news and event coverage. On FBlog, Young Farmer and Rancher members of Farm Bureau share their perspectives on current agriculture topics. And here in Arizona, Julie’s Fresh Air runs aggregated news on agriculture stories plus lifestyle tips that tie into the country life. Additionally, Jeanette’s Joy shares the real-life experiences of Jeanette Barnard, a former national FFA officer, Arizona farm kid now a Monsanto intern in Nicaragua. One of Arizona’s newest “aggie” blogs comes from Candice Barnard. Candice’s blog, White Barn Farms, shares “real-life stories of real people producing real food.” Blogs are much easier to use than a traditional Web site and can be set up and maintained for free. That’s one reason it’s no surprise that droves of people blog, sharing their opinions on subjects they are passionate about. Unfortunately, many blogs contain misinformation about agriculture. When you’re online, it’s important to always critically evaluate where information about agriculture is coming from. If it’s not from a producer or agribusiness source, is it from a person with credible experience or knowledge of the subject area? There are sites you can visit online for informed perspectives about the industry. Past National Beef Ambassadors are doing their part by blogging about the industry on Beefbites, Chewing the Cud and Beef Matters. State Farm Bureau Web sites can also be excellent resources. However, more producer presence is needed, since what many people really want is to connect personally with farmers and ranchers. A couple of examples of sites where ARIZONA AGRICULTURE • JULY, 2008 you can learn more about different types of farming are the The Sugarmaker’s Times blog and the YouTube video, “Truth About Hog Production,” which focuses on the Chinn family’s hog operation. You may see more producer-created blogs in the future, with farmers and ranchers writing periodically about themselves and what they do to produce food and fiber. Creating a blog of your own can be as simple as going online to Word Press or Blogger and signing up for a free account. For farmers and ranchers, blogging is a good way to keep up with friends and family while also enhancing consumer understanding about common agricultural practices. To get started, blogging about what season changes mean on the farm or ranch, or what’s happening with crops or livestock as they grow might be of interest to consumers, most of whom are three generations removed from farming. Not quite ready for a blog? Producers or interested members of the public can help the industry develop a more positive presence on the Internet by searching for articles and blogs about agriculture, then posting responses in agreement or to clear up misconceptions. And when you are looking to learn about agriculture on the Internet, remember to make an effort to connect with America’s farmers and ranchers. They are ideally suited to explain how and why your food is produced a certain way. The Internet is a great place to make these kinds of connections. It’s not the medium of choice just for angsty teenagers, but for much of the rest of the nearly 80 percent of the U.S. population living in urban areas and quite a few agriculturalists as well. For more information about starting your own blog, contact Julie Murphree at (480) 635-3607 or email her at [email protected]. ARIZONA AGRICULTURE • JULY, 2008 www.azfb.org AZFB’s Agriculture in the Classroom Needs Your Help By Katie Schmidbauer-Aikins , Arizona Farm Bureau T he targeted launch date for the Arizona Farm Bureau Agriculture in the Classroom Program (AITC) is right around the corner. Staff is working diligently to complete curriculum and programs by the first of August so we can begin the 2008/2009 School Year with a bang. Word is spreading around the state about our Arizona Farm Bureau’s program and Farm Bureau members are excited to get into their local classrooms. We’re excited about having you become a part of the volunteer team. You have an opportunity to be the face of agriculture and tell the real story about farming and ranching. Your participation will make the difference for young people in the classroom. 7 Agriculture Outlook continued from page 1 markets to adequately hedge against price risk, shipments of cotton from Arizona and California plummeted this spring. The Commodity Futures Trading Commission announced this month that it will be investigating the role of speculators and index traders in the commodity markets. The CFTC’s Enforcement Division has begun a specific investigation of the February-March run-up of cotton futures prices. And then there are those higher input prices (See the article High Input Prices Lead Agriculturalists to Review Production Strategies in this issue). Rising prices for feed mean higher costs for animal producers for whom feed is a growing input cost. Feed prices have risen by more than 25 percent by April of this year alone. Soaring feed costs will eat into profits of the cattle and dairy industries that account for over 40 percent of Arizona’s agricultural sales. Feedlot demand for cattle is expected to fall and prices for feeder cattle are expected to fall 3 to 7 percent from 2007. The price of milk relative to feed is projected to fall in 2008. Milk prices are forecast to fall in 2008 and to decline into 2010. Other costs have also escalated. Fuel prices have risen by more than 40 percent from January to April, while fertilizer prices have risen by more than 60 percent. So, despite the generally positive outlook for U.S. agriculture as a whole, Arizona agriculture in 2008 may not fare as well as the national figures suggest. So far, wheat remains a bright spot. But I think of all those new wheat acres planted across planet earth this year – an additional 3.4 million – and wonder when those prices will start to come back down. County Corner continued from page 2 Children in a classroom wearing the many hats a farmer wears. Additionally, AZFB AITC volunteers can devote a lot or “just a little” bit of time. It’s all up to you and your schedule. AZFB AITC will make a priority to work with what works for you. If you would like to volunteer to go into one of your local classrooms, please contact Education Manager Katie Schmidbauer-Aikins and she will help you get set-up. It doesn’t matter if you have 1 free hour a month, a week, or a year you can help us turn adversaries to advocates. Help us show youth that agriculture is an essential part of their daily lives. For more information about the statewide program, contact Katie SchmidbauerAikins at 480.635.3608. As the Greenlee County Women’s Chair, Linda has taken the lead on several events the county Farm Bureau has participated in this year. She coordinated the Ag Fest booth for the legislative event at the capitol as well as the coordination of placemats celebrating Food Check Out Day. The Duncan FFA Chapter participated by delivering the placements and an information packet to the teachers and students of Duncan Elementary School. Shoppers at Bashas’ in the Morenci Shopping Center were given placemats as they viewed a display highlighting food grown by farmers in Greenlee County and across America. Duncan residents also received the placemats at Best’s. In addition to FCD events, Don and Linda Merrell and Dean Lunt attended Ag Fest and hosted legislators and discussed issues facing Farm Bureau members. Several board members also serve on various state commodity advisory committees to develop policies for both state and national leaders and staff to lobby on for the upcoming year. Don and Linda Merrell also attended the American Farm Bureau annual meeting in New Orleans, LA. Linda participated as a delegate in the Western Region Women’s Caucus for the American Farm Bureau Women’s Committee annual meeting. www.azfb.org 8 AZFB.ORG Features New Scholarship Page Arizona Farm Bureau’s web site, www.azfb.org now features a new page listing county scholarships and other related FB scholarships. Members are encouraged to periodically view this page to determine what scholarships are available when. The page can be found within the Programs link to the left of the main web page in a sublink called Scholarships. Farm Bureau Leader Elected to Hualapai Tribal Council Arizona Farm Bureau Board Member Philip Bravo, Jr. was elected to the Hualapai Tribal Council this past month. Bravo was elected at the General Election by members of the Hualapai Tribe on June 7th. He will serve as Council Member through 2012. Bravo will continue to serve Arizona Farm Bureau as a state board member and as the Mohave County Farm Bureau and Livestock Association President. YF&R Hosts FFA Discussion Meet with Record Attendance In an effort to provide programs that promote YF&R and Farm Bureau, many members went back to school. On June 13th FFA Members from around the State gathered at the University of Arizona for the FFA State Leadership Conference and the YF&R Sponsored FFA Discussion Meet. Participation in this year’s event nearly doubled any previous year attendance with twenty FFA Members competing over 3 rounds. This year’s winner was Jeffery Rojo from Highland High School. Rojo walked away from the competition with a $500 Savings Bond. Congratulations to Jason Parrott from Chandler ARIZONA AGRICULTURE • JULY, 2008 FFA, to Heather Chumbley from Desert Ridge FFA, to Matthew Cale from Highland FFA, to Shelby Jenkins from Highland FFA and to Lacy Mitchell from Highland FFA, who all competed in the final round of competition. A special thank you to all of the Chapters who participated in this year’s contest: Chandler High School, Desert Ridge High School, Gilbert High School, and Highland High School. Thank you to all of the YF&R Members who helped make this event such a success: John Hart, Ana Kennedy, Joe King, Todd Laurer, and Dee Wear. FFA Members from Chandler High, Desert Ridge, and Highland High compete in the final round of competition in last month’s YF&R Sponsored FFA Discussion Meet. Philip Bravo, Jr., President of Mohave County Farm Bureau and Arizona Farm Bureau Board Member, was recently elected to the Hualapai Tribal Council. Use your Credit Card to Pay for Harkins and Sea World Tickets Online Arizona Farm Bureau is pleased to announce that members can now use their credit cards when placing ticket orders online at farmbureauchoices.com, an online listing of membership services and benefits. Sea World and Harkins Theatres tickets can now be ordered and paid for with a credit card on the recently redesigned member benefits web page “farmbureauchoices.com.” You can also order tickets online, to pick up at the Arizona Farm Bureau office in Gilbert. Simply state in the comment field what date you will pick up the tickets. Along with the new look, additional features have been added to make it easier to find the benefits offered by providers and their websites. Visit www.farmbureauchoices.com. For ordering questions or problems, call Peggy Jo Goodfellow at 480-635-3609. www.fillyourplate.org If you sell produce directly to the public and you’re missing from Arizona Farm Bureau’s new Fill Your Plate online directory, you need to join us. This online directory is an opportunity to tell the Arizona community about what you grow or raise. Contact Bridgette Crosby at (480) 635-3606 or email her at [email protected] and ask for a Fill Your Plate application. The place where Arizonans can fill their plates up with Arizona grown and raised agriculture products!
© Copyright 2026 Paperzz