Vol. 1, No. 3 - May 13, 2004
In this issue
Next issue posted May 27.
Market for organic grains
Corinne E. Alexander, Agricultural Economics, Purdue University
Organic grain, as opposed to other forms of organic production, is not sold directly to the end consumer. For much of organic production, farmers can sell their products directly to end consumers, through farmers’ markets and road-side stands. In contrast, end consumers do not purchase organic grain directly from farmers. Instead, they purchase bread, pasta, cereal, tortillas, dairy products, poultry and meat that have been produced with organic grains. Consequently, organic grain producers need to market their grains to organic food processors, bakeries, livestock operations, dairy operations or through a broker.
One of the first questions organic grain producers need to ask is whether to market their grain as food-grade, feed-grade or both. Table 1 presents the organic grain acreage in Michigan, Indiana and Illinois in 2001, the most recent year for which data are available. The top five crops were soybeans, corn, wheat, spelt and oats, in that order. With the exception of spelt, which is clearly intended for food production, the other four crops can be delivered to both the food and feed markets. Notably, in 2001, Michigan accounted for 50% of the U.S. acreage in organic spelt, a wheat substitute for consumers with allergies to wheat.
Trends in food-grade and feed-grade organic grain markets
Overall, consumers are demanding more organic products, and industry experts forecast annual growth rates of 10 to 20% over the medium term. One of the most notable trends in organic production is the rapidly growing dairy, meat and poultry sectors, which means the demand for feed-grade grains is also growing rapidly. In 2002, the organic dairy sector grew by 21% and the organic meat and poultry sector grew by 27%. In contrast, the bread and grains sector, i.e. food-grade grains, grew at a substantial but much slower rate of 12% (Klonsky). Table 2 presents the number of head of organic livestock for the U.S. overall and selected states for 2001. While Michigan, Indiana and Illinois have a relatively small organic livestock sector (with the exception of organic layer hens), grain producers can look to supply organic feed for livestock operations in nearby states. For example, Iowa, Minnesota, Pennsylvania, and Wisconsin accounted for 40% of the organic milk cows in 2001, and had substantial flocks of layer hens, broilers and turkeys.
Delivering food-grade versus feed-grade
The basic difference between delivering food-grade and feed-grade organic grains is that generally food-grade will offer higher prices but also demand higher quality than feed-grade. For food-grade products, buyers generally require that the grain be tested for quality attributes including weed seeds, green material and contamination by genetically modified organisms (GMOs). The buyers expect the quality to be consistent for the entire delivery and some buyers require that the producer follow specific practices in harvest and storage. In contrast, feed-grade buyers are willing to accept lower quality grain. Some are willing to accept grain that has not been cleaned, and some are willing to buy the screenings from the cleaning process for food-grade grain.
In deciding whether to deliver food-grade or feed-grade grains, the producer needs to evaluate prices and cost differences associated with quality standards, cleaning requirements, delivery requirements, as well as any expected differences in yield (I’m not an agronomist, but I’ve heard that feed-grade soybeans have higher yields than Vinton or HP240). For a detailed discussion geared toward food-grade grains on quality standards, the importance of on-farm storage, GMO crop contamination, organic grain marketing ideas, as well as an excellent resource list of organic grain buyers and GMO testing kits and companies, see the article by Holly Born and Preston Sullivan: http://attra.ncat.org/attra-pub/marketingorganicgrains.html
What are buyers willing to pay for organic grains?
Since much of the organic grains are sold under contract, it can be tough for producers to get a sense of the prevailing market price. One recommended strategy is for producers to regularly contact the organic grain buyers they know to ask what they are willing to pay. Another more recent source of information is the Rodale Institute Organic Price Index (OPX, found at www.newfarm.org/opx/grains.html), which tracks organic and conventional prices for #2 yellow corn, soybeans for feed, soybeans for tofu, oats for feed and food, and hard red wheat. Table 3 reports the most recent update from OPX, which indicates per bushel premiums of $2.59 for organic #2 yellow corn, $2.34 for organic feed-grade soybeans, $2.89/ 23# bushel for feed-grade oats, and $2.80 for hard red wheat. Note that the current organic premium for soybeans is probably smaller than usual due to the current very high prices for conventional soybeans that resulted from the extremely short crop in the 03/04 marketing year. Conventional soybean prices are expected to fall substantially in the 04/05 marketing year, unless there is another short crop in the United States and there are additional problems in Brazil.
A note of caution, the organic grain market is a small, niche market and as such, it is subject to wide fluctuations in prices. In periods of high demand with short supply, prices will be very high, and in periods of low demand with large supply, prices will be much lower. Producers can take several steps to help manage this price risk. First, on-farm storage will allow producers to wait for more favorable pricing opportunities. Of course, the producer will need to maintain the quality of the grain during the storage period. Secondly, the producer may sign a contract to deliver the grain for a pre-specified price, as well as pre-specified premiums and deductions for quality.
References
Dimitri, Carolyn, 2003, “What is the size of the U.S. market for organic foods?” ERS briefing room: organic farming and marketing: questions and answers: http://www.ers.usda.gov/Briefing/Organic/Questions/orgqa5.htm
Greene, Catherine, and Amy Kremen, 2003, “U.S. Organic Farming in 2000-2001: Adoption of Certified Systems,” USDA, Economic Research Service, Resource Economics Division, Agriculture Information Bulletin No. 780.
Klonsky, Karen, 2004, “Growth of Organic Agriculture in California”: http://www.sarep.ucdavis.edu/Organic/klonsky.pdf
The role of fungicides in organic production
Dan Egel
Southwest Purdue Agricultural Center
In the tale of Cinderella, Cindy’s fairy godmother grants her wish to go to the ball, but issues a warning: She must return from the ball by midnight or risk disaster. In this article I would like to grant a request to discuss fungicides labeled for organic production. However, I would also like to issue a warning: No amount of fungicide will substitute for ignoring the basics of plant disease management.
I will discuss the basics of plant disease management toward the end of the season when it is more appropriate. The management techniques I will discuss in that article (crop rotation, fall tillage and variety resistance) are the keystones to a healthy crop. (For a relevant publication in PDF format, see diseases of vegetable at this link
http://www.btny.purdue.edu/Pubs/). This is true for all growers, but particularly for organic growers. However, it is for the most part too late to take action on these techniques now—the fields have been chosen and the varieties purchased. Let’s proceed then and discuss fungicides as a supplement to disease management—not a cure-all.
First a few comments on fungicide application.
· Apply fungicides prior to the development of disease. Most fungicides do not effectively eradicate diseases after symptoms have been observed. Once a single disease lesion is observed in the field, many more lesions too small to observe are already attacking your crop.
· Avoid applying fungicides in the heat of the day. It is possible for any foliar applied chemical to cause some plant damage if applied under conditions of heat and direct sunshine.
· Some diseases cannot be managed by foliar sprays. Problems caused by soil borne fungi or nematodes cannot be controlled with foliar fungicides. Examples of these types of problems would be Fusarium wilt of watermelon or root-knot nematodes of tomatoes. Also, be certain that the problem you observe is really a disease. No amount of fungicide will improve a problem caused by soil fertility.
· Do not apply foliar fungicides to the soil. Although fungicides may kill or inhibit the growth of fungi which cause plant diseases, the application of those same fungicides to the soil will be wasteful and off label. Foliar fungicides are designed to protect the surfaces of plants.
· Make certain the fungicide matches the crop and disease. That is, READ THE LABEL. The label is the law. Plus, considerable time and money was spent to test each fungicide with a particular crop and disease. Off label applications also waste your time and money.
· Double-check the label for the current rate per acre. Rates may vary widely based on label changes and different formulations. While you are checking the rate, also check to make sure your application method is labeled.
· Play it safe. Always adhere to the Post-Harvest Intervals, Re-Entry Intervals and Worker Protection Standards listed in the label. No one wants an accident or lawsuit. Besides, the label is the law.
I would now like to draw your attention to the table linked here. Instead of discussing particular brand names, I have listed fungicides by the type of active ingredient. The active ingredient is the compound in the fungicide that actually kills or inhibits the fungus.
Some comments on the table:
· The active ingredients listed have been selected from ones I found when I browsed through the Organic Materials Review Institute http://www.omri.org/. This organization evaluates materials for compliance with the National Organic Program.
· An active ingredient that has multiple modes of action is capable of killing or inhibiting fungi via several methods. Active ingredients that have multiple modes of action usually are effective against a wide range of pathogens (microbes that cause disease) and thus can be used for many plant diseases.
· Since microbial pesticides are only effective if they thrive on a leaf surface (or in the soil), it is probably not a good idea to use microbial products with fungicides that affect a wide range of microbes either in rotation or in tank mixes. For example, using a general biocide like copper might lessen or eliminate the benefits of a microbial fungicide containing the bacterium of the species Bacillus.
· Microbial modes of action vary widely. If the mode of action is “competition”, the microbe fights for space and nutrients with the pathogen. A friendly microbe may produce a toxin or poison that deters or kills the pathogen. Finally, some microbial fungicides actually parasitize the pathogen (that is, eat the pathogen for lunch).
· Most of the active ingredients exhibited here do not have good residual activity, especially during rainy weather. Therefore, it may be necessary to apply these compounds frequently.
· Be certain to double-check these active ingredients and the specific products to determine whether they fit into your organic certification scheme.
Growers who decide to use one or more fungicides to manage plant diseases this season would do well to investigate the products before using them. In addition to carefully reading the label, it is wise to read any additional information the company can provide about the product. Those growers who still have questions should contact the company or university specialists.
Used properly, fungicides can slow the rate of disease spread. Remember, the object is not to eradicate disease from your crop. Successful disease management reduces the amount of disease so that the season is rewarding, financially and otherwise. Fungicides are an important tool for disease management. Fungicides are not the answer to all disease problems, and they certainly aren’t a magic slipper!
Cutworm-like critters in the soil
John Obermeyer and Larry Bledsoe
Purdue Extension Entomology
Summary
· Several bug-like creatures will be found while digging in the soil, most are non-economic.
· In this article, we address millipedes, ground beetle adults and larvae, crane fly larvae and “baby” earthworms.
· Pest managers need to be able to recognize pests and their damage.
Often when pest managers are in hot pursuit of black cutworm larvae they dig up a variety of critters, most being innocuous. There is no comprehensive picture journal to reference these “bugs,” although Purdue’s Field Crops Pest Management Manual (IPM-1) http://www.entm.purdue.edu/entomology/ext/fieldcropsipm/b/ONECP.HTM covers many of them. The difficulty is that there are many animal species that may utilize the soil of a cornfield for all or a short period of their life. Most, having nothing to do with the corn being grown. Listed below are some possibilities as you dig this spring.
| Millipedes These wireworm-like arthropods have two pair of legs per body segment and have become more prevalent with the advent of no-till. When found, their numbers are often high. Millipedes typically feed as scavengers on dead or decaying materials. Occasionally they have been documented as a pest of corn. If very dry conditions exist early in the season, millipedes will feed on corn seedlings, apparently seeking moisture. |
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| Ground beetles If it’s fast moving and shiny, chances are that you’ve seen a ground beetle scurry by. These beetles range in size from about ¼- to 1- inch long. Their color is typically light brown to black. The darker-colored beetles will appear bright green to blue as the sunshine reflects off their wing covers. Fortunately, nearly all ground beetles are beneficial, feasting on many critters in the field. One exception, the seedcorn beetle, will feed on corn seed and seedlings. Usually this is only a problem when the seed sits for long periods of time in cold, wet soils before emerging. |
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| Ground beetle larvae Yes, these are the immatures of the ground beetle. They are often confused with wireworm. However, unlike the wireworm they move quickly on the ground and through the soil. Closer inspection, if you are fast enough to catch one, will reveal well-developed and sharp mouthparts. Yes, you guessed it again; these larvae are beneficial, feeding most often on soft-bodied insects. Even the immature of the seedcorn beetle is beneficial. |
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| Above, a ground beetle larva feeding on corn rootworm larvae. | |
Crane fly larvae |
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Juvenile earthworms |
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| Above, a juvenile earthworm on top of a penny. |
This list could go on. The important thing for pest managers is not so much that they can identify the obscure critters, but rather pests and their damage. Happy Scouting!
Canada thistle turning white
Liz Maynard
Purdue University
Canada thistle infected with the bacteria Pseudomonas syringae pv. tagetis (Pst) will develop new growth that is white. Depending on the severity and timing of the infection, plant growth may be stunted, flower number may be reduced, and the plant may die. New growth that was white when it emerged can eventually turn green. Researchers in Wisconsin, Minnesota, Maryland and Canada are evaluating potential for biocontrol of Canada thistle with Pst.
It is possible that the white leaves observed on grazed thistles in Indiana are a result of infection by this organism. It seems likely that cattle could spread the disease by grazing.
For more information about the disease and research projects, see the following: White Canada thistle - What's the story? Penn State http://weeds.cas.psu.edu/News_2003/whitethistle03.html
Biological control of Canada thistle: more work needed. Center for Integrated Agricultural Systems, U. Wisc.
http://www.wisc.edu/cias/pubs/briefs/065.html
pdf version: http://www.wisc.edu/cias/pubs/briefs/rb65.pdf
New ideas for thistle control. Organic Broadcaster, MOSES. http://www.mosesorganic.org/ob/thistle.htm
Powerpoint show on pasture weed management, includes pictures of work with Pst on Canada thistle in Wisconsin.
http://www.ipaw.org/symposium/ipaw%2003%20thistle%20spurge.ppt
John W. Gronwald, Kathryn L. Plaisance, Donald A. Ide, and Donald L. Wyse. 2002. Assessment of Pseudomonas syringae pv. tagetis as a biocontrol agent for Canada thistle. Weed Science: Vol. 50, No. 3, pp. 397–404. Abstract
http://www.bioone.org/bioone/?request=get-abstract&issn=0043-1745&volume=050&issue=03&page=0397
A Canadian Strain of Pseudomonas Syringae Pv. Tagetis Causes White-Color Disease of Canada Thistle. http://www.ars.usda.gov/research/publications/publications.htm?seq_no_115=148204
Monsanto halts plans for genetically engineered wheat introduction
Submitted by
Jerry DeWitt
Iowa State University Extension, as reported by Andrew Pollack of the New York Times on May 11, 2004
Monsanto said yesterday (May 10) that it had halted its effort to introduce the world's first genetically engineered wheat, bowing to the concerns of American farmers that the crop would endanger billions of dollars of exports.
Monsanto has already largely dropped efforts to develop genetically modified potatoes and vegetables and, while it is not giving up on wheat, its efforts over the next few years will be even more focused on corn, cotton and soybeans. Genetic engineering of those crops is somewhat less controversial because they are used largely for animal feed, clothing or food oils, while wheat is more likely to be used directly in food.
"Consumer acceptance and the readiness of the commercial markets are as important as food and environmental safety for biotech crops these days," said Gregory Jaffe, director of biotechnology programs at the Center for Science in the Public Interest, a consumer group. He added, "It will be difficult to market biotech crops designed primarily for human consumption in the near future."
The wheat was genetically engineered to be resistant to Monsanto's Roundup herbicide, which would allow farmers to spray their fields to kill weeds while leaving the crop intact.
Proposed rule to exempt organic producers from promotion program assessments
Submitted by
Jerry DeWitt
Iowa State University Extension, as reported by SAC news update
The USDA’s Agricultural Marketing Service (AMS) released a proposed rule on Monday, April 26 that would add language to each of 16 research and promotion orders to exempt 100 percent organic producers and processors from paying an assessment under these programs. This is in response to complaints that conventional commodity marketing programs do not serve the needs or interests of organic producers. The proposed rule is available at:
http://www.ams.usda.gov/2002farmbill/organicexempt/
Comments are due by May 26, 2004.
Illinois (from Dave Campbell)
Northern Illinois conditions have been dry with only a half inch of rain within the last week. It has been very hot and humid and thunderstorms are in the forecast for the next several days. Fieldwork has included working the ground and taking care of weeds and volunteer wheat. I plan to plant corn (102-day variety) next week, but this will be dependent on the amount of precipitation (prefer not to plant before a heavy rain). Activities for the next week also include broadcasting of Cal-Sol (350#/A).
Indiana (from David Swaim and Gary Reding)
In west central Indiana rain has been light and spotty and soil conditions are generally very dry. Tilled fields have had considerable surface evaporation and no-till fields that are yet to be burned down have had severe evapo-transpiration losses from infestations of golden ragwort, henbit and mouse-eared chickweed. No frost damage yet.
In southeastern Indiana, we have finally gotten some dry weather. The conventional farmers in my immediate vicinity (Greensburg) are getting a lot of ground planted. My pastures are looking great and the cows I have so far are doing the same.
In west central Indiana, corn planting is finished and most soybean planting has been completed within the last week with the rest to be completed this week. Emergence is good. Cold weather early last week slowed seedling growth and resulted in onion leaf symptoms in corn from slow metabolism of grass herbicide. This was just in certain fields treated with a particular product. Alfalfa is starting to bud and will be cut in the next few days. The coming weeks are primarily dedicated to weed control in the new plantings, either cultivating or spraying. First cutting of hay will be within the next few days. Field tomatoes will be planted next week.
Gary Reding reports, “We had some calves born the last few weeks with more due soon. I have just started mowing my first cutting of hay. I am impressed with the lack of weeds this year in my fields. I would attribute this to the grazing and haying over the last few years. I have noticed that the few thistles that the cows just started to nibble on the tops of this weekend did in fact bleed black. I was told that Sunday we were in the dark of the moon. I will try to see if they die or not this time. The thistles are just starting to bud right now. Hopefully I will be able to spread some of my compost on newly harvested hay fields in the next two weeks. I would like to get it spread before we run short on rainfall. We usually have plenty of rain for the next month or so. I will also try to no-till plant some corn into my freshly baled hay fields. I have not been able to do so yet because of wet ground and now too tall of hay.”
Got 04 organic black beans?
This request in from Gary Reding, “I have a demand for some 04 organic black beans if anyone knows of any. I can clean them but they need to be delivered to Greensburg, Indiana. Up to 4 semi loads. I have not had much experience in organic dry beans. Weed control is my biggest question with the fact that they do not shade the rows well.” Contact Gary at 812-663-9546.
Questions: Last year, was soybean aphid damage as severe in organic crops as in conventional? Are there any strategies to reduce aphid impact? How strong is the market for non-GMO soybeans? Are there processors who cannot get the white corn that they need? Are there any niches in the specialty or organic grain markets where demand is outpacing supply? What is the disease outlook for this year’s crop? What problems should a new grower expect with production and marketing of spelt?
What steps do organic producers take to reduce weevil damage on alfalfa? What steps do organic producers take to reduce potato leafhopper damage on alfalfa?
Michigan (from Matt Wiley)
In Southwest Michigan we had 2.5 inches of rain during the last three days. The weather has been warm and humid. The soil temperature was 67 degrees F at 8 AM on Wednesday, May 12.
The soil condition in Southwest Michigan remains too wet to plant or work. We expect to be able to plant in three to four days.
Matt Wiley reports that his second rotivation has been completed and he expects to do one more prior to planting. He rotivates about 2 to 2.5 inches at 4 mph.
Please meet more of the growers who are reporting for the 2004 New Agriclture Network. Previous introductions are posted at: http://www.ipm.msu.edu/new-ag/aboutNewAg.htm
Indiana
David Swaim is a professional crop consultant working with conservation-oriented farmers in west central Indiana and is based outside of Crawfordsville. He also works as a technical advisor and grant writer for the Jennings County Growers Cooperative, a group of smaller-scale farmers that collaboratively market fresh produce and livestock products. Dave is manager and part owner of a 257-acre family farm adjacent to Turkey Run State Park. For more than 30 years he has been interested in transitional strategies preparing for organic field crop production. He has served as president of Indiana Sustainable Agriculture Association, the SARE-NCR Administrative Council and the National Sustainable Ag Network.
Gary Reding is president of Langeland Farms, Inc. in Greensburg, Indiana. He farms 600 acres, of which 249 are certified organic pasture and hay used for an intensive grazing operation. He also processes organic and conventional food crops, including popcorn, dry beans, soybeans, wheat and corn.
Bill Meyers farms 120 acres in LaPorte County in northwest Indiana. He produces organic rye, buckwheat and hairy vetch (all sold for seed), wheat, and mixed vegetables for fresh market.
Illinois
Jon Cherniss has operated an organic vegetable farm on 12 tillable acres in Urbana, Illinois since 1997 and has farmed organically since 1988 on farms in California, Ohio and Georgia. The farm has been certified organic since 2001 and markets primarily to farmers’ markets and local restaurants. Forty different crops are grown each season on 5-6 acres. Primary crops include tomatoes and salad greens. The farm also has a 15th of an acre in hot houses used primarily for early tomatoes.
Dave Campbell has been involved in organic farming since 1967 when his father started farming organically. Dave and his wife Mary own and operate a 200-acre certified organic farm (Lily Lake Organic Farm) which is located in northeastern Illinois. He also operated an organic dairy farm along with his father in Illinois and later in Wisconsin. Dave moved onto the present farm in 1988. By 1991, the entire farm was certified organic. Alfalfa/grass hay was grown extensively during transition years and shortly thereafter. Presently, wheat, corn, and soybeans are the primary crops grown along with small amounts of oats, hay, buckwheat, and cover crops. A few laying hens are also raised on the farm. In addition to farming, he is currently a board member of OFARM (Organic Farmers Agency for Relationship Marketing) and is also taking classes through the University of Illinois off-campus Graduate Studies Program in Crop Science.
