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Northeast
Missouri Agriculture Newsletter serving
Lewis, Marion, Monroe, Ralls, and Pike Counties
June - July 2004
In this issue:
Marketing Strategies
Swine Farm Numbers, Unbelievable Heifer Sales, Ractopamine for Beef Cattle, Effect of Early
Weaning on Replacement Heifer Production, and Pasture Rental Rates
Crazy Top in Corn, Armies of Armyworms, and Soybean Rust
Alix Carpenter
Agronomy Specialist
University of Missouri Extension, Marion County
Courthouse Room 201
Palmyra MO 63461
(573) 769-2177
carpenterac@missouri.edu |
Karisha
Vaughn Devlin
Agribusiness Specialist
University of Missouri Extension, Shelby County
Shelbyville MO 63469
(573) 633-2640
devlink@missouri.edu
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Al Kennett
Livestock Specialist
University of Missouri Extension, Ralls County
P.O. Box 540
New London MO 63459
(573) 985-3911
kennetta@missouri.edu |
Calendar of Events
| June 29 |
Soybean Rust Workshop, Palmyra |
| July 12 -17 |
Shelby County Fair |
| July 12 - 16 |
Ralls County Fair |
| July 13 - 18 |
Lewis County Fair |
| July 17 - 25 |
Monroe County Fair |
| July 24 |
Youth Farm Safety Camp, Mark
Twain High School, Center |
| July 26 - 31 |
Pike County Fair |
| August 2 - 7 |
Marion County - Flower City Festival |
| August 5 |
Greenley Research Center Field Day, Novelty |
| August 12 - 22 |
Missouri State Fair |
| August 20 - 21 |
Management Intensive
Grazing School, Hannibal |
| August 27 |
State Beef Cattle Tour,
Monroe and Shelby counties |
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Management Intensive Grazing School
A two-day, Management Intensive Grazing School will be held in
Hannibal, August 20 and 21. The grazing school will cover various aspects of grazing
management, including livestock nutrition, grazing animal health considerations, basic forage
growth and management, layout and design of grazing systems, and stockpiling for winter pasture.
Farm tours of local operations using Management Intensive
Grazing systems will be part of the program. Participants will be shown the improvements that have
occurred as a result of their pasture management programs, as well as innovative ideas in
livestock water development.
Registration must be completed by August 13. For more
information, or to receive a brochure, please contact the University of Missouri Extension, Marion
County office at (573) 769-2177, or the Ralls County office at (573) 985-3911. |
AG BUSINESS NOTES
Karisha Vaughn
Marketing
Strategies
The last few months have been quite interesting in the commodity
markets. In this newsletter, I decided
to share with you an article written by Melvin Brees, Extension
Associate in Agricultural Economics,
highlighting a few simple marketing strategies.
A number of marketing strategies and sales tools can be used to manage
some of the risk occurring in
volatile markets. These strategies probably won’t capture the high, but
they offer opportunities to achieve
reasonable price goals and capture profits. It is important to
understand that volatile markets can produce
surprises, and the results of some strategies can be disappointing.
However, having a strategy to capture
higher prices usually beats having no strategy at all.
Spreading sales: It just makes sense not to sell everything at
once when markets are volatile and
uncertain. Unexpected events can quickly change the price outlook.
Selling a portion of grain inventory
at favorable prices insures that some of it is sold at profitable
prices. If prices increase, more grain
inventory is available for sale, and when it is sold at higher prices,
it increases the average price of grain
sold. Similarly, if prices decline, some grain has already been sold at
higher prices and provides a higher
average price by offsetting later sales as prices decline.
Set price targets: Having a price goal tends to make selling
somewhat easier. Using upside price targets
together with spreading of sales allows following a market uptrend with
“scale-up” sales. When a higher
price target is reached, a portion of the grain is sold. If prices
continue to increase, additional sales are
made at higher price targets, resulting in increasingly higher average
prices. Price charts or technical
analysis can be helpful to identify price targets. Setting price targets
at or just below technical price
resistance is one method of identifying price goals. Resistance prices
represent earlier price highs that
previous rallies failed to exceed or where prices resisted going higher.
Price traps: In volatile markets, having downside price targets
or price traps is also important. While
everyone likes to focus on upside price targets, being prepared to make
sales if the market declines can
help salvage higher average prices early in the price decline. These
sales are difficult to make because
prices were recently better, but the objective is to capture favorable
(or at least decent) prices before
prices decline to much lower levels.
I hope that everyone has some sort of marketing strategy in place. If
you have any questions about this
article, feel free to contact me at (573) 633.2640.
LIVESTOCK NOTES
Al Kennett
Swine
Farm Numbers
Swine Farm Numbers are down again! As has been the case each year since
1980, the number of hog
operations in the U.S. declined in 2003. However, at the same time the
average hog inventory per farm
grew. That wasn’t any surprise was it??
According to USDA’s annual report there were 73,600 hog farms in 2003. That
was down 2650 from
2002. The average inventory per hog operation was 820 head which was up 40
head from the year
before. In 1980 we had 666,500 hog farms with an average of 97 head per
farm.
The top four states in hog farm numbers (not total hogs) were Iowa,
Minnesota, Ohio, and Texas. Seven
states averaged more than 1000 hogs per farm. They include North Carolina,
Iowa, Utah, Minnesota,
Illinois, Missouri, and Kansas.
USDA says there are 8470 hog operations that raised hogs in 2003 but did not
own any hogs. These
contract growers accounted for 11.5% of U.S. hog operations. I would guess
that this number will grow
rapidly in the next 5 years.
Unbelievable Heifer Sales
Two Show-Me-Select bred heifer sales have been held in the state this
spring. These are heifers that will
calve in the fall and have met all the requirements of the Show-Me-Select
program.
The sales were held in the SE and SW, Fruitland and Joplin. The Fruitland
sale sold 245 head for an
average of $1392 and the Joplin sale sold 256 head for a $1414 average.
These heifers would have been worth around 90 cents a pound in the spring of
2003 when they were
weaned and probably around $1.00 a pound last fall at breeding time. Add to
that the costs involved in
raising and breeding replacement heifers and you probably have a cost of
$1000 to $1050 in these heifers.
So, you might say these were “Value Added” sales!!
Ractopamine for Beef Cattle
Earlier this year, FDA approved the use of a beta-agonist, ractopamine, as a
growth promotant during the
last 28 to 42 days of the finishing period for feedlot steers and heifers.
It is marketed by Elanco Animal
Health under the trade name of Optaflexx?. It is recommended to be fed at
the rate of 200 mg/head/day
for 28 days. A five-trial summary of steers showed the following
improvements over controls: Live wt.
gain, +17.3 lb; dressing percent, +0.3%; hot carcass wt., 14.1 lb, ribeye
area, +0.4 sq. in.; yield grade
score, -0.1. Because there was no change in dry matter intake, a significant
improvement in feed efficiency
was observed. There were no differences in marbling score or quality grade.
At the recent Southwest Nutrition and Management Conference, Dr. Aubrey
Schroeder presented the
results of a study on shear force and sensory evaluation of strip loin
steaks. When Optaflexx? was fed at
the recommended level of 200 mg/head/day, there were no changes from
controls in Warner-Bratzler shear
force or sensory evaluation of tenderness, juiciness and flavor. However,
when fed at 300 mg/head/day,
there was a significant change in shear force and sensory tenderness.
Effect of Early Weaning on Replacement Heifer Production
Univ. of Illinois investigators used 64 Simmental x Angus heifer calves to
compare the effects of early
versus normal weaning age on subsequent productivity. Weaning occurred at 89
days and 232 days of
age for early-weaned (EW) and normal (NW) heifers, respectively.
Early-weaned heifers were lighter from
puberty to breeding. However, by the time of palpation of pregnancy there
was no difference in body
weight. In spite of lighter pubertal weights, significantly more EW heifers
reached puberty by 8 mos. of age
than did NW heifers (81.3 vs. 59.4%). Pregnancy rate was also higher for EW
than for NW heifers
(90.0% vs. 74.2%). Weaning age of the heifers did not influence their
subsequent milk production nor the
performance of their calves. The authors concluded that early weaning
reduced heifer size until breeding,
increased percentage of replacements cycling at an early age, and improved
pregnancy rate without
influencing milk production (Sexton et al. 2004. Midwestern Section, ASAS,
Abstract 283).
Pasture Rental Rates
One of the most common questions I get is about the going rate for renting
pasture and/or hay land.
The University of Missouri conducts a survey every couple of years to see
what rates are being charged
around the state. I use that information as well as what I hear locally to
give an answer. The state
information is printed in MU guide 427. You can get one at your Extension
Center.
Our current guide came out in 2003 and shows that the state wide average for
improved pasture is
$26.00 per acre with a range of $10 to $50 per acre. Pasture land in north
Missouri tends to rent a
little higher than in south Missouri. The most common figures I hear in our
area are in the $28 to $32
per acre with some as high as $40.
Of course there are a lot of variables that affect the rate. Those include
quality of fencing, water,
corrals available, type of grass and/or legumes, carrying capacity,
fertilizer agreements, how convenient
to the cattle owner, and length of time of the rental agreement.
Some pastures are also rented on a per head basis. It seems like there is
less of this than there used to
be. Our guide sheet shows the state average at $6.80 per cow-calf pair per
month. The range was $4
to $16. The most common figure I hear in our area is $8.00 to $8.50.
Finally - The man and his wife are seated
in a fancy French restaurant for dinner. The waiter arrives
and the man says “I will have your biggest, thickest T-bone steak.” The
waiter replies, “but sire, what
about ze mad cow?” The man replies “bring her a salad!”
AGRONOMY NOTES
Alix Carpenter
Crazy
Top in Corn
Insect damage? Herbicide drift? Aliens? Apparently, the spring of 2004 has
been one made for crazy
top. Crazy top is caused by a soilborne fungus, Sclerophthora macrospora,
and sets in when corn plants
are in saturated soils for a period of 24-48 hours, from planting to the
five-leaf stage. Usually, this disease
is seen only in isolated areas (often low spots within a field), but weather
conditions this year have been
perfect for crazy top, and I’ve seen it across the region.
The fungus causes deformation of the plant. Usually, this is exhibited in
later growth as narrow or strap-like
leaves, stunting, prolific ear shoot development, and the tassel resembling
leaves. In young corn, leaves
roll or twist together, and the plant may tiller excessively. Also in young
plants, leaf tissues may have a
(temporary) bleached appearance.
A bit of an oddity, this disease seldom causes severe yield losses. Some
hybrids are more susceptible than
others. The only management option which exists for crazy top is good
drainage - kind of hard when you
get 2½ inches of rain in an hour, though.
Armies of Armyworms
Across northern Missouri, armyworms have been moving in large numbers. We
seem to have problems
with the armyworm only once every few years; it looks as if this will be one
of those years. In Linn and
Sullivan counties, 15 to 20 armyworms per square foot have been found in
pastures.
Infestations so far have been very localized, and are worse in areas which
did not receive large amounts
of rain or hail in recent days. Nonetheless, the armyworm has the potential
for extensive feeding this year,
and crops should be scouted.
There are four armyworm species in Missouri; the true and yellowstriped
armyworms are the ones we’d
expect to see in fields now. In corn, the true armyworm starts feeding on
lower leaves before moving up
the plant. Plants less than 8 inches tall can be completely defoliated.
Scouting should be done until corn
develops several leaves. As the larvae are usually inactive during the day,
scouting is most effective in the
early morning or late afternoon. Twenty-five or more percent of seedling
corn showing damage, and non-
parasitized larvae present in the field, indicates treatment is economically
justified.
In grass pastures, the true armyworm prefers new, lush growth. Once this has
been consumed, true
armyworms either feed on the remainder of the plant, or move on to other
host plants, such as corn or
wheat. In wheat, true armyworm feeds on leaves, and in some years, awns and
seed heads. Again,
scouting should be done in early morning or late evening; scouting should
continue through harvest. Four
or more non-parasitized larvae per square foot in wheat or grass pastures
indicate control is necessary.
Soybean Rust
Soybean rust has been mentioned frequently in the press in recent months. It
is not yet in the United States
(and hopefully things will stay that way for a while), but is running
rampant in South America.
When soybean rust first shows signs on soybean, it appears as tan to
red-brown lesions. Later, leaves
yellow and defoliation occurs. What will make this disease difficult to
scout for is that it usually develops
from the bottom of the plant up, with early stages of the disease being
visible on the undersides of leaves.
Several diseases which occur frequently in Missouri have symptoms resembling
those of soybean rust.
These include bacterial blight, bacterial pustule, frogeye leafspot, and
Septoria brown spot.
A national teleconference workshop on soybean rust will be hosted at the
Marion County Extension Center
in Palmyra on Tuesday, June 29, from 8:30 a.m. to noon. The workshop will
provide information about
the biology and spread of soybean rust, outline steps to take if, and/or
when it is detected in the U.S., and
provide updates on approaches and prospects for soybean rust management.
There is no charge for this
workshop. If you have questions concerning this event, please contact me at
(573) 769.2177 or
carpenterac@missouri.edu.
Revised:
June 23, 2004.
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