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Farmer plans similar crop for 2008Specialty market helps with decision making By Jennifer Bremer
The recently released USDA crop report has made many farmers anxious to see if their planting decisions for the coming year are in line with what the entire industry is doing. Southwest Iowa farmer Darrel McAlexander says his operation won't change much from recent years since he raises specialty crops. A slow start "We just need it to dry up so we can get back into the field," he said. McAlexander, like many other farmers across Iowa, is getting anxious to get into the field and get the crop planted. "Things are exciting in agriculture right now and we want to be sure to have the best growing conditions possible for our crop, so the yields will be good," he added. Darrel, along with his brother Jim, farms about 3,000 acres in Fremont County near Sidney. They also enjoy some assistance from their 88-year-old father, Carl. Generally, McAlexander starts major fieldwork by mid-April; however, moisture this spring will delay that a bit. "It really needs to warm up and dry up," he said in late March. "We have the majority of our anhydrous on, but are about a month behind schedule, so we really need the weather to cooperate." Not only does he need to be in the field, but he also needs to deliver sold grain from last year's crop. Management changes The grain market does have some impact on what McAlexander plants, but he said his ground and the need for his specialty crops are more of an influence on his planting decisions. He, like many other farmers, has found a way to market his grain to get a premium for what he grows. McAlexander's specialty is white corn. "Our soils aren't as productive as those in central Iowa so we have to look for alternative ways to earn premiums," he said. The McAlexanders, along with six other farmers, formed a cooperative -- Quality Iowa Maize in Hamburg. The company formed as these seven farmers wanted to create a market for their products and get a premium for it, as well. They purchased an old soybean cleaning plant in 1999 and renovated it to work for their needs. The company processes about 1 million bushels of corn each year. It is cleaned and put into 50-pound bags or containers to be shipped to food processors. Besides white corn, they also process food-grade yellow corn. But growing these specialty crops requires a different mindset. All farm equipment needs to be cleaned thoroughly before planting and harvesting the crop. Most of the farmers have expanded their on-farm storage to maintain the identity-preserved crops. "Bins also have to be thoroughly cleaned to ensure the grain at delivery," he said. The group feels fortunate to own their own processing facility, giving them the ability to process the grain according to each customer's specifications. Planting Last year McAlexander planted 300 acres more corn than previous years, but he said that was due to the wet river bottoms. This year he will plant 5 percent less corn than last year and get his rotation more toward 60-40 corn. Almost 80 percent of his corn acres will be in white corn to help meet the needs of his co-op and the remaining corn acres will be planted in food-grade yellow corn. His soybean crop is planted for a premium, as well, as nearly 70 percent of his soybeans are seed beans delivered to a seed company about 90 miles away. "We have to be very cautious of what we are putting in our planter in each field since we raise all these specialty crops," he said. The farmers in his county have always been willing to try something new in order to add value to the crop they are growing. "Fremont County farmers raise specialty crops like popcorn, white corn and seed corn to add value to their crop," he said. "We also tend to have a little longer growing season, which helps us get the most out of these specialties." Tillage practices Since 1992, the McAlexanders have been an all no-till operation. "With our soils and planting on the hills, we can really see the benefits to being no-till," he said. "We can handle both the rain and the dry weather better." Crop residue has helped prevent erosion on his land. Moisture is conserved in the soil, but with the residue, there is something to soak up the extra moisture in wet springs. He said they also have seen a considerable increase in the number of earthworms in their soils, which increases the productivity of their land. "We do have some challenges with no-till, but there are more benefits," he said. "It especially allows us to farm more acres with less labor since we don't have to go over the land as often." Planting on hills can be a challenge, but McAlexander said no-till can help that as well. Their yearly maintenance on terraces and waterways is less difficult because erosion is less common. "No-till has helped us tremendously. We always have some kind of crop when other surrounding farmers may not," he said. Inputs Along with higher selling prices, McAlexander said he is also experiencing higher input costs, which requires better management practices. With the high cost of chemicals, he decided to purchase a GPS system on his sprayers which will automatically shut off the sprayer bars at appropriate times to avoid double spraying areas of the fields. While he and his brother own all of their land, land prices have been a concern for many farmers. Prices in his area in southwest Iowa have been $4,000 to $6,000 per acre. High fuel costs are also an issue for farmers, but McAlexander said that is where the no-till practices help him. With fewer trips across his fields, he is conserving fuel that others who don't use no-till have to pay for. Involvement McAlexander is currently chair-elect of the Iowa Corn Promotion Board and also serves on the U.S. Grains Council. Both keep him busy going to meetings and events. He said the involvement in these organizations allows him to not only stay current on policies affecting crop farmers, but also get a word in for farmers across the state. "I have really enjoyed my involvement with these groups. It allows me to have a network of friends who I can share information with and learn new things," he said. He serves on many committees within these groups including market development, research and exports -- all important to the crop farmer and the end user. "Price will always be the driving factor for our crop. We need to let consumers know how important our grain is to their everyday life," he said. For the future McAlexander said he hopes to see a farm bill soon to help revive the agriculture industry. Many have concerns with payment limitations and he said high prices could pose a problem when it comes to the concerns for crop farmers. He would also like to see a health insurance program for farmers in the future. "We are the ones feeding the world; yet when we have health issues and we don't have off-farm employment, health insurance can be a huge concern," he said. His involvement in the crop industry organizations has allowed him to see the needs of the industry to help keep demand and high prices available. With ethanol, he said there is a need for higher blends -- 15 to 30 percent -- to make the ethanol industry work for the future. "Profitability is important. It's a great demand booster, but we have to continue to produce the inputs for the fuel industry," he said. "The price has to be high enough for everyone to experience a profit." While the current prices are excellent and it's a great time to be in agriculture, McAlexander is also cautious about the uncertainty in the future. "It's good to be in agriculture right now, but it's also scary. Time will tell what will happen and we hope the good times will continue for a long time," he said. Jennifer Bremer can be reached by phone at 515-833-2120 or by e-mail at jbremermaj@hotmail.com. 4/28/08 Date: 4/24/08 Advertisement
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