US Agricultural Outlook – A Bright Picture

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
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POSTMASTER
Send address changes to:
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325 S Higley Rd., Suite
210
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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!