Dec. 2004/Jan. 2005
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National
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800
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Convention ’05 c
elebr
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ganization
celebr
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organization
ganization’’s
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thday
a day of festivities
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extra
In this Edition
◆ New Country Farms
High-moisture cheeses
on retailer shelves
3
◆ Ennis & NFOrganics
Growing the
NFOrganics brand
3
◆ Convention 2005
Speaker and
schedule preview
4
◆ November Prices
Review monthly
price moves
6
National Farmers Mission Statement:
To provide greater opportunities through
collective bargaining systems, to obtain a
fair price from the marketplace for the
commodities produced by member farmers
and ranchers.
In a small rural community in
the heart of America’s farm country,
producers once gathered together to
discuss steeply falling farm prices and
a drought in the Midwest. The year
was 1955, and during those tough
times a new agricultural movement
was born, the National Farmers
Organization.
Fast forward to today’s National
Farmers. The organization has
matured into an ag commodity
bargaining, risk management and
niche marketing organization,
helping America’s farmers and
ranchers use every technique
possible to maximize their profit
potential.
And because 2005 marks its
golden anniversary, this year’s
national convention in Grand
Rapids, Michigan features an extra
day of festivities to commemorate
our rich history at Convention ’05,
the organization’s accomplishements.
but look ahead to how we can help
“When you stop
producers profit in the
and think about the
changing farm markets
outstanding figures in
of tomorrow.”
this organization’s
Set for Jan 17-21 at
history, from Oren
the Amway Grand
Lee Staley and
Plaza Hotel,
Erhard Phingston to
Convention ’05
DeVon Woodland,
features several
you’re reminded of
inspiring speakers,
the important
including Mark
contributions this
Ritchie, president of
organization has
the Institute for
made to agriculture
Agriculture and Trade
the past five
Policy, and Randy
The Amway Grand Plaza Hotel,
decades,” said
Cook, president of the
home to Convention `05
National Farmers
National Organization
President Paul Olson.
for Raw Materials
“NFO has always been an advocate
(NORM). The newly-elected
for independent farmers and
president of the American Corn
ranchers, and we’ll not only celebrate
Continued on page 3
NFO urges new ag
secretary to
represent farmers
Organization presents Willie Nelson
with family farm preservation award
On Dec. 2, National Farmers
Organization offered
congratulations to Nebraska Gov.
Mike Johanns as secretary of
agriculture after the Bush
administration announced selection
of the Iowa native who grew up on a
dairy farm.
“We congratulate Mike Johanns
as he takes on the extremely
important task of overseeing the
nation’s food programs,” said
National Farmers President, Paul
Olson. “We’re hopeful Mr. Johanns
will be able to balance the public’s
need for safe and abundant food
with farmers and ranchers’ need for
fair and competitive markets.”
The Bush administration
signaled its farm trade priority by
tapping Johanns as ag secretary, and
food producers are concerned that
future trade negotiations should
benefit both farmers and consumers.
“I believe agricultural producers
across the country are of the opinion
that our trade negotiations should
When producers or consumers are
The award, a scale-model early 1970s
asked what entertainment figure has done
series tractor is mounted on a hand-hewn
the most to help farmers in times of
walnut block. The block of wood was
trouble, most give the same answer. Farm
harvested from Melanie Dungan’s mother,
Aid founder Willie Nelson.
Shirley Pilgrim’s century farm. Her father,
During a concert
Dick Pilgrim and son,
in Iowa’s heartland
Casey Barker, cut
this September,
planed and sanded the
National Farmers
block, and then her
Organization
mother applied the
presented the famed
final finish.
entertainer with a
After Nelson
special award
accepted the award, he
honoring him for his
selflessly put in a pitch
efforts on behalf of
to once again help
Dave Reed, (r) national secretary
family farmers.
disadvantaged
and Melanie Dungan (l) present
Willie Nelson (ctr) with farm award
Dave Reed,
producers. “A lot of
national secretary for
farms have been reNational Farmers and Convention
posessed over the last few years and we’e
Coordinator Melanie Dungan presented
talking to some people about getting that
the award to Nelson in Des Moines, Iowa.
land re-distributed and putting farmers
“Willie, on behalf of the members of
back out on the land,” he said.
the National Farmers Organization for
“The farmer is the backbone of the
everything you have done for the family
country...and I think it’s important to keep
farmers of America, we’d like to present
small family farmers out there growing our
this award to you for your years of
food that we eat and that we give to our
dedication to the preservation of the
children,” Nelson concluded.
family farm,” said Reed.
Continued on page 2
800.824.4448
NFO Officers and
Board of Directors
President — Paul Olson, WI
VP — Leonard Vandenburg, CA
Treasurer— Michael Miller, IA
Secretary — Dave Reed, IA
Board Members
Ron Mattos – Hanford, CA
David Lusk – Arbon, ID
Ron Schultz – Stewardson, IL
Jerry Maxheimer – Mt. Pulaski, IL
Bernard Rudecki – Walkerton, IN
Gilbert Kleaving – Tell City, IN
Norbert Hackman – Fort Atkinson, IA
Paul Riniker – Greeley, IA
Harold Walker – Mayetta, KS
Carl Wahlmeier – Jennings, KS
Aubin Mattingly – Rineyville, KY
George Field, Sr. – Auburn, ME
DeVere Noakes – Litchfield, MI
Mark Rohr – Bluffton, MN
Leander Wagner – Elko, MN
Joseph Neaton – Watertown, MN
Ken Schlottach– Owensville, MO
Mark Manford — Holden, MO
Wayne Forder – Highwood, MT
Norman Stokebrand – DeWitt, NE
Carroll Wade – Jasper, NY
Daniel Casler – Little Falls, NY
Calvin Shockman – La Moure, ND
William Goettemoeller – Versailles, OH
Chester Stoll – Marshallville, OH
Dennis Hadley - Silverton, OR
Kaleb Wolfe – Centre Hall, PA
James Brown – Dell Rapids, SD
Arlen Hanson –Columbia, SD
Raymond Tardif – St. Albans, VT
Mark Hegg – Palouse, WA
Garry Crosby – Shell Lake, WI
Donald Hamm — Fredonia, WI
Stanley LaCrosse— Kewaunee, WI
NF
O est. 195
5
NFO
1955
Collective Ba
rgaining
Bargaining
for Agricultu
riculturre
THE REPORTER
The Voice of family farmers
and ranchers
The NFO Reporter is published six times
a year by National Farmers
Organization, 528 Billy Sunday Road
Ames, Iowa 50010-2000
(515)292-2000
e-mail: [email protected]
Internet: http://nfo.org
Non-profit third class postage paid at
Princeton, Minn.
Postmaster: Send address changes,
along with mailing labels, to: The NFO
Reporter, 528 Billy Sunday Road, Ames,
Iowa 50010-2000.
Subscription price for members, $1 per
year; for non-members, $5 per year.
President’s Message
By Paul Olson
Another year is beginning to wind down. And another
harvest is behind us. Our thoughts turn to the holiday season
and shortly after, our special 50th anniversary national
convention.
This has been a fulfilling year for all of us at NFO. We
continue to develop and fine tune new and innovative
programs to enhance our collective bargaining efforts in all of
our commodity departments.
MaximumMarketing was rolled out several months ago in
our Dairy Division, and continues to be an excellent procurement tool for our staff. Plans
for the future are to take this program national in all commodities. Thanks to the efforts
of our procurement teams, we are enjoying some of the greatest growth the organization
has seen in years. I cannot recall a time when
our staff has worked this closely together for a
common cause — justice in the marketplace.
Thanks to the
I would like to take this opportunity to
efforts of our
thank our staff across the country and in the
procurement teams,
home office, you folks are the best. I have been
we are enjoying
blessed with a great board of directors and
some of the greatest
three fellow officers who make my job a lot
growth the
easier.
organization has
And I want to offer a big thank-you to all
seen in years.
of our loyal members for their continued
support. And last, but certainly not least, I want
to offer my heartfelt thanks to my wonderful
wife and family for all they do for me. I couldn’t do this job without them.
Please have a blessed Christmas, and a prosperous New Year. I look forward to
seeing you in Grand Rapids, Mich., January 17. May God bless you.
All roads lead to Convention ’05
and the Amway Grand Plaza Hotel
From US 131 North or South
Exit US 131 at Pearl Street. Cross the Grand River. The Hotel will be on you
left at the corner of Pearl and Monroe Streets, approximately one-half mile from
the highway.
From I-96/196 East or West
Exit I-96/196 at Ottawa. Turn
right at the second light (Lyon
Street). Turn left at the first
light (Monroe Street). Turn
right at the first light (Pearl
Street). The Hotel will be on
the corner of Pearl and
Monroe Streets with the lobby
entrance on Pearl.
From I-94 East or West
Take I-94 to US 131 North and
follow that into Grand Rapids.
Exit US 131 at Pearl Street.
Cross over the Grand River.
The Hotel will be on your left at the corner of Pearl and Monroe, approximately
one-half mile from the highway with the lobby entrance on Pearl.
From the Gerald R. Ford International Airport
As you are leaving the airport, take your first right onto Patterson. Turn right on
28th Street. Take 28th Street to I-96 West/Grand Rapids. I-96 will merge with
196 to the left. Take 196. Exit at Ottawa. Turn right at the second light. (Lyon
Street). Turn left at the first light (Monroe Street). Turn right at the first light
(Pearl). The Hotel is on the corner of Pearl and Monroe.
2
Produc
er
s need ag
oducer
ers
advocat
e during
advocate
upc
oming tr
ade talks
upcoming
trade
—Continued from page 1
be pursued with the interests of
both consumers and farmers
represented,” said Olson, a dairy
farmer from Wisconsin.
Some believe the nation’s ag
trade policies negatively impact
foreign farmers because domestic
farm programs provide large
payments to U.S. producers. The
relatively low commodity prices
allow the U.S. to then sell products
overseas at below domestic
production costs.
National Farmers also endorses
a ban on packer ownership of
animals, country-of-origin labeling
and enforcement of anti-trust laws
affecting agriculture.
Grand Rapids, Michigan
and the Amway Grand
Plaza hotel host our 50th
annual national convention
Jan. 17-21.
Travel and Transport,
Northwest and United
Airlines have been
selected as official
travel coordinators for
Convention ’05.
Northwest and United
are offering National
Farmers additional
discounts off published
fares.
The best discounts will
go to those who book
early!
Call now and mention
National Farmers
Convention ’05.
Call 800.747.8182
New Country Farms places premium highmoisture cheeses in west coast retail stores
Imagine
the taste of a
high-moisture
traditional Jack
Cheese, but
with portabella
mushrooms,
garlic and basil
added. Or a
festive Jalapeno Jack, bursting with green and red
jalapeno peppers, a perfect complement to your
favorite mexican dish. That is precisely the kind of
dairy product innovation New Country Farms is
developing, and the new cheeses are being met
with rave reviews in western state markets.
“An assistant to the buyer of Tony’s Fine
Foods, a 70-year old
California food distribution
company, said New
Country Farms’ Premium
Portabella Garlic Jack was
the best cheese she had
ever tasted,” said Steve
Wise, General Manager of
New Country Farms. “She
took a block home and
grated it on a pizza and everyone was just delighted
with the taste, they said it was the best cheese they
had ever tasted.”
New Country Farms has rolled out five of the
new Premium High-Moisture Cheeses, including
Traditional Jack, Pesto Jack, Chipolte Jack, and the
Portabella Garlic, and Jalapeno Jack offerings.
“One of the other things we’ve brought to the
success formula is a real bold label with our
logo...one of the remarks we hear often is that our
label really pops,” Wise emphasized. “People are
attracted to our label, because it’s real fresh, bright
and new...compared to many cheese makers who
are wonderful artisans, but are not strong in sales
and marketing.”
Wise said New Country Farms is set up to take
NFO milk from cows not treated with rbst, which
plays well in natural food arenas, and then
packaging, marketing and distributing it in a way
that is attractive to consumers.
“We’ve gotten orders in for 2160 pounds total,
that shipped Nov. 26,” Wise added. “Forrest Reed,
national sales manager for New Country Farms has
done an excellent job placing the premium cheeses
in the retail market. The average price New
Country Farms received
is $4.62 per pound.”
Wise and National
Farmers Vice-President,
Leonard Vandenburg,
who oversees the retail
development effort, are
planning on expanding
the brand offering from
the current five to 11.
Baby Swiss, Ricotta, Mozzerella, and a Mild and
Medium Sharp Chedder would be added to the
premium listing. That expansion would allow larger
chains to consider New Country Farms Premium
Cheeses. And enable the brand to grow from sunny
California to the East Coast.
Be sure to look for the New Country Farms
exhibit display at Convention 2005 and visit with
Wise and Reed about the retail effort.
Gr
and R
apids c
onvention tto
o offer memories of the
Grand
Rapids
convention
past, mark
eting ideas and futur
e or
ganization plans
marketing
future
organization
—Continued from page 1
Reservations will be accepted through Dec. 17.
Wednesday evening the sounds of the HyGrowers Association, Keith Bolin, will address
Notes will float across the dance floor as members
attendees, along with NFU’s president, Dave
take time to kick up their heels a
Frederickson. The well-known Jim
bit. A special 50th birthday cake
Hightower will delight and
will be served as part of what
entertain convention goers
“NFO has always
promises to be an evening to
Thursday, Jan. 20.
been an advocate for
remember.
The always popular
independent farmers
Friday morning, Jan. 21, is a
commodity day on Wednesday, Jan.
and ranchers, and
special day that has been added
19 begins with divisional reports
we’ll not only
to the Convention ’05 schedule
from the three commodity
celebrate our rich
to celebrate the organization’s
departments, as well as an update
history at
contributions to agriculture. The
on National Farmers’ retail brand,
Convention ‘05, but
50th birthday festivities features
New Country Farms.
look
ahead
to
how
videos from past events and
The afternoon workshop
we can help
leaders, as well as personal NFO
tracks offer grain, dairy and
producers profit in
stories shared by convention
livestock producers the
the changing farm
attendees and guests.
opportunity to update themselves
markets of
New this year is a
on industry conditions and
tomorrow.”
registration fee of $10 for
marketing strategies for the new
— Paul Olson
delegates and guests. The fee will
year, and learn more about farm
President
help cover ever-increasing
transition and estate planning.
convention costs.
Wednesday afternoon also
Members are urged to make travel plans and
offers a Grand Rapids historic city tour, featuring
hotel reservations early for Convention `05.
Heritage Hill and the Gerald R. Ford Museum.
3
NFOrganics staff work
diligently to deliver
member organic profits
Since May Tim Ennis has been working on a major
assignment — one focused on growing National Farmers’
NFOrganics brand.
Ennis, through calling and meeting with organic
producers in several states, is finding ways to attract new
producers to the already successful organic grain
marketing program, increasing name recognition for the
brand, and strengthening the all-important bargaining
chip - market influence for the NFOrganics program.
As Ennis, LuAnn Robinson – the main organics
contact in the home office, and John Nadler in Wisconsin,
aggressively work through his list of about 1,500 organic
producers to call in Iowa, Minnesota, North Dakota,
South Dakota, Nebraska, Wisconsin, Ohio and New York,
and other states, he has found that the NFOrganics
marketing methods he shares with producers are receiving
a warm reception. Of course, almost everyone is familiar
with the organization, but the NFOrganics brand is
another matter.
“So, we encourage our producers to use the
NFOrganics brand name often in conversations with other
producers, suppliers and handlers, to increase our name
recognition in the organic market,” Ennis said.
As Ennis talks with producers, he has also discovered
that many producers are unaware of NFOrganics’
involvement in OFARM – a key tool in providing first-rate
service to them. OFARM was formed to coordinate the
efforts of the seven marketing groups that work to help
organic producers succeed. Its focus involves frequent
communication, and common goals.
In OFARM, the groups share the same target price
goals for each type of organic grain, reinforcing a message
to buyers that growers are working together to receive
profitable prices. He explains all of this to potential
NFOrganics producers.
NFOrganics shares objectives with the other
marketing groups. It exchanges pricing and marketing
information among the member organizations. The goal is
to inventory production and to manage organic marketing
in a responsible manner. And the strength of each
organization comes from the quality and volume of its
contracted inventory.
When organic grain inventory is contracted and is
available for sale exclusively through an OFARM
organization, buyers will negotiate profitable prices. The
practical business fact is that OFARM represents enough
of a variety of organic grains that buyers contact them for
supplies.
The calls made by the NFOrganics staff to organic
producers, in Iowa and Minnesota, have found that about
two of ten organic growers have quit organic production
recently. Why? One primary factor is retirement, with each
retiree representing 80 to 200 acres of certified organic
grain. Those acres then become available for cash rent,
and are generally converted to conventional production.
The second factor cited for discontinuing organic
production is weed pressure and yield drag. The third
factor cited is the difficulty of managing a combination
conventional and organic operation, when the larger
portion of the operation is conventional.
However, as the NFOrganics staff has conversed with
the eight out of 10 producers who continue to grow
organically and those new to organic production, they are
Continued on page 7
Leaders
Paul Olson
President
Leonard Vandenburg
Vice-President
Dave Reed
Controller and Secretary
Mike Miller
Treasurer
Schedule
Monday, January 17
8:00 am
10:00 am
2:00 pm
3:00 pm
Dr. Richard Levins
Ag Economist
Steve Wise
New Country Farms
Brad Rach
Dairy Director
3:00 pm
4:00 pm
5:00 pm
Dairy
Wayne Moore
Dairy Risk Management
Dave Kaseno
N.E. Regional Director
Harry Grundman
President, 1955-1956
U.S farmers buffeted
by dramatically falling prices
5:00 pm
Board of Directors — Pearl Room
Bylaws Committee — Pearl Room
Resolutions Registration — Center Concourse
Resolutions Committee — Pearl
Credentials — Emerald Room B
Committee Registration — Center Concourse
Membership Workshop — Emerald Room A
Committee Meetings:
Election & Tally — Ruby Room
Arrangements — Ambassador Ballroom
Delegate Registration — Center Concourse
Tuesday, January 18
7:30 am
8:00 am
8:00 am
8:45 am
9:45 am
10:45 am
12:00 N
1:00 pm
1:30 pm
2:00 pm
2:30 pm
3:00 pm
3:15 pm
4:30 pm
7:30 pm
Forrest Reed
New Country Farms
50th Birthday Breakfast — Pantlind Ballroom
Chapel — Ruby Room
Registration — Center Concourse
General Session — Ambassador Ballroom
Preliminary Committee Reports
Financial Report
Lunch
Bylaws
Resolutions
Vice President’s Address — L. Vandenburg
Remarks — Eugene Paul
Break
Mark Ritchie— Institute for Ag Trade Policy
NFOrganics Grain Meeting — Pearl Room
State of the Organization — Paul Olson
Wednesday, January 19
7:00 am
7:15 am
8:00 am
8:15 am
8:30 am
10:30 am
10:45 am
11:05 am
1:00 pm
2:15 pm
3:45 pm
8:00 pm
Michigan National Farmers Grand
Breakfast sponsored by Michigan
NFO — Pantlind Ballroom
Chapel — Ruby Room
Registration — Center Concourse
General Session — Ambassador Ballroom
Commodity Division & New Country
Farms Reports
Break
Agriculture in the Coming Years —
Bob Cashdollar
Institute for Rural America — John Bobbe
Commodity Workshops I
Dairy Situation & Outlook — Pearl Room
Livestock — Emerald Room B
Grain — Emerald Room A
Commodity Workshops II
Dairy Forum — Pearl Room
Livestock — Emerald Room B
Grain — Emerald Room A
Commodity Workshops III
NFOrganics - OFARM — Emarald A
What the Election Means to Farmers
— Emerald B
New Country Farms — Grand View A
Estate & Transition Planning —
Grand View B/C
50th Birthday celebratory cake and
Dance featuring The Hy-Notes —
Imperial Ballroom
Oren Lee Staley
President, 1956-1979
National Farmers
Organization created
4
Organization granted
Capper-Volstead status
NFO commodity
structure established
Livestock collection
point system established
Mark Ritchie
President IFATP
Jim Hightower
America’s #1 Populist
Dave Frederickson
National Farmers Union
Robert Skogland
The Humble Farmer
Speakers
David Senter
Ag Consultant
John Bobbe
Institute For Rural America
Bob Cashdollar
Washington Consultant
Randy Cook
NORM
Thursday, January 20
7:30 am
7:30 am
8:30 am
8:45
✦ am
9:15 am
10:00 am
10:30 am
11:45 am
1:00 pm
1:30 pm
2:00 pm
2:30 pm
2:45 pm
3:00 pm
Chapel Service — Ruby Room
Registration — Center Concourse
General Session — Ambassador Ballroom
Dedicated Service Awards — Walt Albers
Seating of National Directors
Break
Jim Hightower — America’s #1 Populist
Lunch
Dave Frederickson, President, NFU
Randy Cook, President, NORM
Keith Bolin, President, American
Corn Growers
Break
Institute for Rural America Prize drawing
The Humble Farmer, Robert Skogland
Rodger Schlottach
Livestock Director
Pat Lampert
Livestock Ops Manager
Merle Suntken
Livestock Consultant
Rene Niese
Farm Financial Services
Livestock
Friday, January 21
8:30 am
50th Anniversary Celebration Day —
featurng major events and leader videos
along with personal stories from
attendees — Ambassador Ballroom
Farm Kids for College Raffle drawing
Adjourn
10:30
Noon
Sponsored by:
Dairy Management Inc.
✦ Travel & Transport
✦ Michigan National Farmers
Pete Lorenz
Grain Marketing Plus
Luann Robinson
NForganics
Tim Ennis
NForganics
Grain
✦
DeVon Woodland
President, 1979-1991
Contracts for large
block sales initiated
Dairy reloads built, 20-year
anti-trust lawsuit began
Linda Reineke
Grain Director
Steve Halloran
President, 1991-1995
Collection, Dispatch and
Delivery system maximized
Eugene Paul
President, 1995-1999
Commodity marketing, retail
and niche programs pursued
5
By Brad Rach
By Pat Lampert
The success we are seeing in farmer collective
action couldn’t come at a better time. The recent
presidential election can mean only one thing for
farmers — relying on government assistance is
more dangerous than ever. No matter what
candidate you voted for, this much should be clear:
we will have more globalization, increasing levels
of corporate influence and a huge budget deficit
problem to solve.
Globalization weakens a government’s ability
to set agricultural policy. Most of us have heard
about challenges to cotton and sugar programs that
the World Trade Organization (WTO) is
mounting.
This will
spread as the
At Convention ’05 in
current
Grand Rapids, the
administration
dairy staff will roll
pushes WTO
out new
and North
developments with
America Free
our
Trade
MaximumMarketing
Agreement
approach, as well as
(NAFTA)
provide a
style policies
Wednesday
throughout
workshop on the
our
situation and
hemisphere.
outlook for the dairy
At the
industry.
same time,
tax breaks for
corporations
will leave
them with more dollars than ever to influence
policy in Washington. And, if that wasn’t enough,
the federal budget deficit is growing too large to
ignore.
Once tax increases are eliminated as a solution,
only spending cuts remain. Therefore, you can
expect relatively expensive farm programs to be
examined more closely than ever before.
What all of these issues mean is that we will
have to look to places other than Washington to
keep our farm businesses profitable. Indeed,
producers will have to look toward marketplace
solutions. And it is here that National Farmers 50
years of experience and success with maximum
marketing programs for America’s farm families
will pay off.
At Convention ’05 in Grand Rapids, the dairy
staff will roll out new developments with our
MaximumMarketing approach, as well as provide a
Wednesday workshop on the situation and outlook
for the dairy industry.
I hope you’ll make plans to attend Convention
’05, where we’ll not only celebrate our past, but
look toward a bright marketing future for
producers who elect to join National Farmers.
The Livestock Division stepped up marketing efforts
The CME (Chicago Mercantile Exchange) for
toward the end of the fiscal year, which ended Oct. 1.
December and February busted through $90.00 on
The first quarter of the year we were making
November 24, which is another positive development.
excellent progress, however a mad cow situation
There are certainly signs of profitability at these
presented a challenge in January and February. That,
levels.
combined with the decline of fed cattle numbers,
Feeders have been at record highs and will
impacted markets during March and April. The numbers
continue to remain strong. And with the run on the
started recovering in May and continued doing so
futures the last few days, you need
through October.
to pay close attention to markets.
A big thanks goes out to the
Stay in contact with National
livestock staff for their effort. We
Farmers marketing representatives
Please join me in
also thank the entire dairy division
when placing your feeders.
welcoming Jeff
for their help and contributions to
The cow market is also
Rose, as he works to
the effort as well.
heading in the right direction.
provide the kind of
As we kicked off a new fiscal
Cows are short and will remain that
member service
year, we were in the process of
way. Jeff Rose, our new cattle
Suntken is well
assembling another Thanksgiving
negotiator, with the help of Merle
known for.
cattle block.
Suntken, our seasoned negotiator
The cattle market had been
have opened up more cow plants to
under some pressure, but seemed to
work with. Suntken and Rose have
come back slowly during the
also opened up additional fed
Thanksgiving week. The big news was thecattle BSE
cattle plants as well.
(bovine spongiform encephalopathy) issue. Once again,
For those of you who don’t know, Merle officially
this issue has been laid to rest, again proving to
retired from the organization in October. But he will
consumers that safeguards are in place and work.
remain on board as a consultant for a period of time.
Based on several conversations with plant
Please join me in welcoming Jeff Rose, as he works to
representatives recently we believe the cattle market
provide the kind of member service Suntken is well
should remain strong through the holiday season.
known for.
November prices received up 1 point
The preliminary All Farm Products Index of Prices
Received by Farmers in November, at 114, based on
1990-92=100, is 1 point above October. The Crop
Index remained unchanged from October while the
Livestock Index increased 1 point (0.9 percent).
Producers received higher commodity prices for
tomatoes, eggs, hogs, strawberries, and grapes. Lower
prices were received for lettuce, oranges, soybeans,
corn, and cattle. The seasonal change in the mix of
commodities farmers sell, based on the past 3-year
average, also affects the overall index. Increased
average marketings of dairy, cattle, and cotton offset
decreased marketings of soybeans, peanuts, and
Commodity & Unit
C
ott
on, per lb
Cott
otton,
lb..
Wheat, per bu.
Cor
n, per bu.
orn,
Barley
Barley,, per bu.
Gr
ain Sor
ghum, per cwt.
Grain
Sorghum,
Soybeans, per bu.
Oats, per bu.
Dr
y edi
ble beans, per cwt.
Dry
edib
Mi
lk (al
Milk
(alll ), per cwt.
Beef cattle (al
(alll ), per cwt.
Calves, per cwt.
Hogs, per cwt.
Don’t forget to visit the NFO webpage:
www.nfo.org
Price Received
0.471
3.51
2.00
2.42
3.07
5. 3 1
1.36
27
.20
7.20
1 55.80
.80
84.20
124.00
5 5 .30
potatoes. The preliminary All Farm Products Index is
down 2 points (1.7 percent) from November 2003.
Prices Paid Index Down 1 Point
The November Index of Prices Paid for
Commodities and Services, Interest, Taxes, and Farm
Wage Rates (PPITW) is 134 percent of the 1990-92
average. The index is down 1 point from October but 5
points (3.9 percent) above November 2003. Lower
prices in November for feeder cattle, complete feeds,
feed concentrates, and feed grains, more than offset
higher prices for self-propelled machinery, LP gas,
feeder pigs, and nitrogen fertilizers.
100 % Parity Parity Received In cents /lb.
2.02
0.471
23
10
.10
35
5 .8
5
0.10
.85
6.7 7
30
3.57
6.7 1
36
55.0
.0
4
.04
11.00
28
3.07
1 55.90
.90
33
8.8
5
8.85
3.9
4
35
4.25
3.94
52.10
52
27
.2
27.2
3 55.20
.20
43
15
.8
15.8
170
.00
50
8
4.2
0.00
84.2
228.00
54
124.0
1 0 55.00
.00
53
555
5. 3
Source: Agricultural Prices – National Agricultural Statistics Service, USDA
6
Ennis, R
obinson and N
adler
Robinson
Nadler
lead effor
ts tto
o de
velop
efforts
develop
NF
Or
ganics br
and visi
bi
NFOr
Organics
brand
visibi
billity
By Linda Reineke
This year’s national convention will be filled
with proud memories of our 50-year history. And
the Grain Division’s
Marketing Plus
Program has a
history of its own
that we are very
Region
proud of.
PSP Unit #1
Since its
Range of sales
inception in 1989,
Weighted Avg
we’ve successfully
PSP Unit #2
negotiated sales for
Range of sales
farmers’ grain at
Weighted Avg
prices that give
PSP Unit #3
them bragging
Range of sales
rights at the coffee
Weighted Avg
shop.
PSP Unit #4
I want to share
Range of sales
with you the results
Weighted Avg
of grain sales that
PSP Unit #5
were made during
Range of sales
last year’s MarketWeighted Avg
ing Plus selling
PSP Unit #6
period for delivery
Range of sales
this year. These 10
Weighted Avg
Producer Service
PSP Unit #7
Plan Units allowed
Range of sales
us to forward
Weighted Avg
contract grain for
PSP Unit #8
them under the
Range of sales
Marketing Plus
Weighted Avg
system of selling.
PSP Unit #9
Prices vary due to
Range of sales
basis considerations
Weighted Avg
in various parts of
PSP Unit #10
the United States.
Range of sales
market at the end of the marketing year before
harvest. It is possible that we have small grains that
can be fed or
blended with
your corn to
make it last
longer. Talk to
Corn
Soybeans
your nutritionist
about facts on
$2.16-$3.09 $6.05-$7.03
feeding small
$2.82
$6.13
grains.
As a grain
$2.40-$3.25 $6.39-$8.03
producer
you
$2.74
$7.38
would like the
highest dollar for
$2.63-3.35 $6.51-$8.03
your grain. But as
$2.83
$7.39
a dairyman or
livestock feeder
$2.36-$3.32 $6.30-$7.65
you would also
$2.93
$7.26
like to know
what your feed is
$2.08-$3.19 $6.67-$7.52
going to cost. We
$2.71
$6.70
continue to assist
dairymen and
$2.68-$3.15 $6.14-$7.50
women with
$2.91
$7.24
their feed
requirements and
$2.35-$3.14 $6.46-$7.32
match them with
$2.75
$7.05
our producers’
organic grain.
$2.36-$3.05 $6.05-$7.53
When
$2.65
$6.83
NFOrganics is
contacted by a
$2.38-$3.18 $6.05-$7.40
producer who
$2.71
$6.77
requires feed, we
attempt to find a
$2.48-$3.20 $6.46-$7.72
supply geo$2.90
$7.09
graphically as
close as possible
in order to
minimize freight costs.
I know it is hard to believe, but convention is
just around the corner. One of the topics we will
discuss at our NFOrganics workshop is supply
contracts. There are a lot of questions from grain
producers and feeders. Is a supply contract a benefit
to the grain producer? Is there a carry in the market
if you commit all your grain to a feeder at the
beginning of the marketing year? What happens if
you agree to sell your grain to a feeder, the supply is
short and the market skyrockets? These are the
questions we will address. And we will work directly
with grain producers and feeders to come up with
reasonable answers.
Other topics for the convention workshop will
include supply and demand information, and price
expectations for organic grains. We may invite a
guest to show footage illustrating the process of
cleaning and handling organic, non-GMO and IP
grains.
We hope you and yours have a wonderful
Christmas holiday season.
New Crop Sales Analysis
Weighted Avg
You may
remember in the
Oct./Nov.
NFOrganic’s
Perspectives we
addressed the numerous telephone calls we have
received about the confusion regarding the relationship NFOrganics has with OFARM. Hopefully
that information was helpful and made the relationship more clear.
The telephones are still keeping us busy with
numerous other questions about organic grains.
We have received a lot of inquiries from producers
desiring to buy organic corn for their dairy or
livestock operations. We all know how enormous
the conventional corn crop will be, but that doesn’t
mean there is enough certified organic corn for
feed.
Production concerns and high demand impact
organic farmers, if they purchase organic grain for
feed. As an organic farmer, you know what happened to the soybean market last year due to short
supply, and what normally happens to the corn
7
—Continued from page 3
finding that certified organic acres seem to be on the
increase overall. So, considering the National Farmers
interest in helping independent producers profit, it’s
important to grow the NFOrganics brand and assist
producers in the organic sector.
And the good news is, those organic growers are
willing. In discussions with these specialized producers
Ennis and the NFOrganics staff have found them open to
working with other producers to assure a strong organic
market.
“Throughout my discussions with producers in
2004, I have found they are interested in how they can
work with other producers,” Ennis said. “They are
community-minded and embrace the idea of working
together.”
And one way the NFOrganics staff is bringing new
members into the program is through a willingness to
persist in selling organic small grains, like wheat, barley,
oats and rye, which have a less liquid market. And that
encourages producers to bring both grains which are in
higher demand, and those less so to the NFOrganics
table.
The NFOrganics professionals, Ennis, Robinson and
Nadler, know how to market all of it – soybeans, corn,
wheat, barley, oats and rye. And with the crop rotation
requirements of the certified organic producer, small
grains will continue to play a role in their marketing
plans. And meeting their marketing needs with the grains
in a more liquid market will be reality at NFOrganics,
too.
Certified organic grain producers who belong to a
strong marketing group can influence their prices in the
future. While organic prices are at profitable levels, it is
important to consistently maintain profitable prices. If
you want to be a part of the NFOrganics effort to create
sustainable, profitable organic grain prices in the year
ahead, contact the office today at 800.306.3913.
A pub
lic
ation of th
ational F
arme
rs Orga
nization Dec. 200
public
lication
thee N
National
Fa
rmers
Organization
4/J
an. 2005
2004/J
4/Jan.
Clip & Mail
Your Grand Tour!
Order raffle tickets, model tractor
GRAND RAPIDS CITY TOUR plus HERITAGE HILL
HISTORIC DISTRICT & GERALD R. FORD MUSEUM
Wednesday, Jan. 19
AMWAY GRAND PLAZA HOTEL
Departing Hotel at 1:00 P.M.
**Narrated guided city tour by a local professional Step-on-Guide
and will include a drive- through-tour of Heritage Hill Historic District.
GERALD R. FORD MUSEUM
Arriving Museum at 2:45 P.M.
A $5 million renovation has just been completed. Hands-on,
interactive exhibits place the visitors inside the American presidency.
AMWAY GRAND PLAZA HOTEL
Return at 4:45 P.M.
COMPLETE TOUR COST: $38.00, per person
(Price per person based on a minimum of thirty-four (34) paying passengers, per coach)
ESCORTED TOUR INCLUDES: Transportation via climate-controlled, motor coach with reclining seats;
restroom. Guided City tour with drive-through-tour of Historic Heritage Hill; Admission into the Gerald
R. Ford Museum and gratuities fo driver, escort and Step-On-Guide. Please send payment in full with
reservation by Dec. 17.
Reservation Form
Mail payment and reservation form to:
GAIL ANDRUS TRAVEL
400 Ann Street, N.W.
Suite 206
Grand Rapids, Michigan 49504
Telephone Number: (616)363-9835
Tractor
supplied with
NFO logo
1955 Chevy truck
3600 first series
Please send me the following:
1955 Chevy Truck Raffle Tickets ($10 each)
(Number of)
Scale-model NFO Farmall SuperM tractor ($50 each)
(Number of)
Payment Method Check One):
Check
Mastercard
Account #
Expiration Date
Signature (Required)
Mailing Address (No P.O. Boxes, please print clearly)
Name
e-mail
Address
“City Tour/G.R. Ford Museum”
Wednesday, January 19, 2005
Tour Cost: $38.00, per person
Make check payable to Gail Andrus Travel
NAME________________________________TELEPHONE NUMBER_____________
City
State
Zip
Daytime phone
*Due to production circumstances, the commemorative
tractors will not contain a serial number.
Send your completed order form and payment to:
National Farmers, P.O. Box 2508, Ames, Iowa 50010
To place your order by phone, call 800.247.2110
Clip & Mail
8
“Address Service
Requested”
National Farmers
NUMBER OF RESERVATIONS______________AMOUNT ENCLOSED___________
* All payments will be refunded if the 34 passenger minimum is not met.
528 Billy Sunday Road
P.O. Box 2508
Ames, IA 50010
Non-Profit
U.S. POSTAGE PAID
PRINCETON, MN
PERMIT NO. 18
ADDRESS_____________________________CITY/STATE/ZIP__________________