Last Friday I attended a public workshop in Ankeny hosted by the Department of Justice and U.S. Department of Agriculture. Several panelists throughout the day addressed various competition issues in agriculture, including the livestock and seed industries.

A group of professors with expertise in antitrust, Intellectual property, public policy, and economics have been following the issue of “seed industry concentration” and blogged live from Friday’s DOJ/USDA workshop. I invite you to visit www.truthonthemarket.com and read their post, “On Seed industry concentration and its claimed effects.”

There are two lines in the aforementioned blog post that really sum up the overriding issue: “… turns out the traits farmers like best were created by one firm. As it happens, the only constraint that I know of on innovation is the willingness and ability to incur the risk and bear the cost of R&D.”

The cost of Research and Development (R&D) is a large one to bare. In fact, Monsanto invested more than $980 million last fiscal year. The company spends nearly $3 million a day on R&D related to new biotech traits, elite germplasm, breeding, new variety and hybrid development, and genomics research. Other R&D projects support Monsanto’s current products, including improved formulations of Roundup herbicide. (http://www.monsanto.com/investors/corporate_profile.asp)

But Monsanto is not the only company investing heavily to create new products that will help provide food and fuel for the world’s growing population. Syngenta, Bayer CropScience, Dow AgroSciences and DuPont also spend hundreds of millions of dollars annually to continually strengthen their own product pipelines. 

Fortunately, Latham Hi‑Tech Seeds has the privilege of working with the industry’s leading technology providers. Through our unique alliances and strategic partnerships, we’re able to offer products with a variety of trait and genetic packages. Our unique position as an independent, family-owned seed company allows us to provide farmers with the choices for products and traits that will best fit their unique farming operations including:

• Corn hybrids with Genuity^TM SmartStax^TM
• Corn hybrids with Genuity^TM VT Triple^TM Pro
• Corn hybrids with YieldGard® VT Triple with Roundup Ready 2 Technology^TM
• Corn hybrids with Herculex® XTRA
• Corn hybrids with Agrisure® 3000GT
• Corn hybrids with LibertyLink^TM
• Soybean brands with Genuity^TM Roundup Ready 2 Yield^TM
• Soybean brands with Roundup® Ready
• Soybean brands with LibertyLink^TM

Today I’m attending the first in a series of workshops hosted by the Department of Justice and the U.S. Department of Agriculture to discuss competition and regulatory issues affecting the agriculture industry. Converging for this hallmark event in Ankeny are sure to be a host of lawyers, PR professionals, members of the media, politicians, seed company representatives, as well as crop farmers and livestock producers.

It could very well be a three-ring circus. One blogger even called today’s public hearing on the seed industry a “Big Ticket, Vegas-style showdown” with a couple of heavyweights (i.e. DuPont and Monsanto) throwing punches and advancing the antitrust issue.

At the end of the day, I’m not hoping for any knockouts or drag downs. The entire agriculture industry will be better served when more “heavyweights” enter the arena.

More technology providers means increased competition, and increased competition means more choices for everyone from seed suppliers to crop producers.

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The American Society of Agronomy on March 9 presented its 2010 Champion of Agronomy Award to Congressman Tom Latham (R-IA-4^th).

Agriculture has always been a very important part of Congressman Latham’s life.  He grew up near the small farming community of Alexander, Iowa, and later served as co-owner of Latham Seed Co.

“It is a great honor to present the American Society of Agronomy’s 2010 Champion of Agriculture Award to Representative Tom Latham,” said ASA Board of Directors Representative Dr. Kathleen Delate of Iowa State University. “As a farmer, Congressman Latham knows the importance of conservation to ensure the long-term productivity of our agricultural lands.”

This is the first year of the Champion of Agronomy Award and Congressman Latham is the inaugural recipient.

“The American Society of Agronomy provides an important forum for the exchange of knowledge and ideas among scientists studying agriculture worldwide,” said Congressman Latham upon receiving the award. “We must continue to make advances in agricultural science and conservation so America’s farmers and ranchers will continue to be able to provide the food, feed, fiber, and fuel crops that we depend on. We’ve taken great strides in this arena in the last several decades, and I know that the coming years will bring even more progress. This is critical work, and I look forward to our continued partnership. I am honored to accept this award.”

We are so proud of Tom and his continued support of the agriculture industry. Congratulations on your honor!

Click here to read the full article.

Secretary of Agriculture Tom Vilsack spoke March 5 at the Commodity Classic in Anaheim, Calif. Vilsack, as reported by Successful Farming, shared his hopes to expand global market access for U.S. farm products with corn, soybean, wheat and sorghum farmers.

Vilsack discussed the USDA’s efforts to reenergize rural economies by promoting U.S. products throughout the world with a different approach than has been used in the past. The USDA previously looked at agricultural trading partners by geographic region. But in a new strategy outlined by Vilsack, the USDA will be looking at countries based on their position on an agricultural market continuum. This new approach will open the door for strategies that can increase exports to each individual market.

“USDA’s continued work to expand trade opportunities for America’s hard-working farmers and ranchers will play an important role in our effort to rebuild rural communities across the country,” said Vilsack. “Increased trade will not only create important income opportunities for producers, but also the off-farm jobs that are so critical for revitalizing rural America.”

What are your thoughts on the USDA’s new approach to export markets?

As you’ve heard and read recently, Chile was hit with one of the hardest earthquakes ever recorded. The magnitude of the 8.8 quake and the following tsunami waves have been a huge blow to the people and infrastructure of this South American country.

Latham Hi‑Tech Seeds does winter production and research in Chile for both corn and soybeans. We use several different companies there, and fortunately, the people whom we work with have been reported safe. There doesn’t appear to be any major structural damage to any of their facilities at this time, although travel is difficult and electricity has been cut throughout much of the region. The main national artery, the Pan-American Highway, also has substantial damage but appears to be operational.

The southern area of Conception, where many of our earlier varieties and hybrids are raised, was probably closest to the quake’s epicenter. The ports in Conception (south) and Santiago (further north) are both open and operating, but many of the customs facilities were damaged.

Our thoughts and prayers go out to those affected by this tragedy.

Moe Rusell, who provides risk management tips for corn, soybean and livestock producers, says this year there is a drastic difference between the tone of meetings he’s conducted with soybean and corn producers verses that of the livestock producers. The following information comes from Russel’s article, “Build an Alliance,” in the February issue of Corn and Soybean Digest.

Generally, corn and soybean producers had a great 2009; a number of clients netted a $200+/acre profit. On the other hand, livestock producers have had their working capital, overall equity and financial stability severely hurt.

Grain producers need to remember the biggest corn user in America is the livestock industry. With every difficulty there is an opportunity, and I see potential for corn and soybean growers who have had great income the past two years to look for opportunities to develop alliances or partnerships with livestock producers who have suffered losses.

In many cases, livestock producers still have very viable businesses, says Russell, and you may both be able to benefit by developing a business arrangement. However, first be sure to ask yourself if the person you’re considering is trustworthy. If so, move forward. If not, stop right there.

How does the arrangement work?

If a hog producer has owned hogs and fed them in his own buildings, he could contract-feed for a grain farmer who would own the pigs and provide the feed. To compensate the hog owner for his facility, time and work, the grain producer would pay an agreed-upon contract fee, much like hog integrators do. A grain producer could buy the feeder pig, lock in corn and soybean meal prices and forward sell the finished hog and lock in a nice profit. This could be a short- or long-term arrangement between two parties, and a win-win for both.

Click here to read the full article.

The February issue of Wallaces Farmer contains the article “Time to pick crop insurance,” reminding farmers of the March 15 deadline to sign up for insurance on their 2010 crops.

One question many farmers have about purchasing insurance is whether to purchase by basic unit, enterprise unit or optional units. The four choices of crop insurance include:

Optional units: Each farm and crop is insured separately. If you farm three different farms in a county, each has its own coverage.

Basic units: Your owned and rented acres in the same county are combined, but each crop is separate.

Enterprise units: All acres of the same crop in the same county are combined. So, all your corn acres are insured separately from your bean acres.

Whole Farm units: All your corn and bean acres in the county are combined.

Work with your crop insurance agent to better understand each form available before determining the best option for your farm. Click here for more information that may help you make your crop insurance decisions.

As you all know, agriculture has faced a lot of attacks in the media this year. We don’t have to go very far back to see the reports and events that have made life difficult for some of our friends in agriculture. First, H1N1 is referred to as the swine flu and nearly cripples the pork industry. Just two weeks ago, Nightline aired a story on the dairy industry that was bias even in its title, “Disturbing Reality of Dairy Land.” Then, just last week, CBS aired a report on antibiotics in livestock and littered the report with references to “factory farming.”

Before I get too upset, I’ll first state my agreement with an editor who said the media reports sensational stories, because that’s what we viewers/readers have decided we want. It’s not speculation. It’s proven. So, they grab the sensational.

However, I still feel these reporters could have done a better job at airing the truth. Because, the truth as I know it first hand from the dairy industry, is that the majority of producers care for their animals better than we care for our pets. Providing regular vet visits to ensure health, taking care of hoof treatments, and providing a nutritionist who has them on a healthy diet. And the truth, as I know it from the pork industry, is that the antibiotics given to their animals are only antibiotics approved by the Food and Drug Administration (FDA) to treat pigs, and are administered when pigs are sick, susceptible or exposed to illness. Click here for more information.

When someone talks about agriculture negatively, it’s important that we all speak – with one voice – about the truth of agricultural practices. Spread the message about how you care for your land and water. Let them know your passion for your work, and your dedication to helping feed our world. That’s the true story.

What stories are you going to share with consumers?

After a winter spent digging out from record-breaking snowfalls, customers and dealers of Latham® Hi‑Tech Seeds enjoyed heading south for a few days of warmth and relaxation. Nearly 80 Midwesterners traveled to Key West, Florida, from Feb. 7-10.

The trip began with “Cheeseburgers in Paradise” during a private Super Bowl party at the Hard Rock Café. The next day we toured Old Key West via trolleys with stops at Truman’s Little White House and the Hemingway House. As an avid reader, aspiring writer and fervent cat lover, I particularly enjoyed touring Hemingway’s house.

The legendary author’s presence can still be felt in his studio, which he built on the second floor of a carriage house. One can just picture Hemingway penning his famous novels while his beloved cats nap in the sunlight. In fact, decedents of Hemingway’s unusual six-toed tomcat still roam freely around the grounds. Nearly half of the 60 cats that currently inhabit the grounds are polydactyl. All of the cats are named after famous people, upholding the tradition that Hemingway started. I couldn’t resist snapping this photo of “Charlie Chaplin.”

In addition to Hemingway’s cats, Key West is famous for its fowl. Chickens have roamed freely since the pioneer days and are now part of the Southernmost’s quirky charm. About 2,000 birds now inhabit an island that measures 2-by- 4 miles. I snapped this colorful photo as our group enjoyed lunch on Monday.

Tuesday was our “water day.” Some members of our group got a very different view of Key West as they toured the area by jet ski. Others in our group enjoyed snorkeling, fishing or parasailing. During our free time, we enjoyed walking down the famous Duval Street, as well as soaking up the sun poolside and napping on the beach. That night we celebrated the sunset – yes, it’s an actual celebration in Key West, complete with a champagne toast – onboard a catamaran for a dinner cruise on our final evening.

With reluctance, Wednesday morning I packed my bags for our return flight to the frozen tundra. I didn’t enjoy walking through a two-foot drift to get inside our vehicle, but I was eager to be snug inside my home again. Thankfully, spring isn’t too far off now – at least that’s what I’m telling myself as our area braces for more snowfall!

Thanks again to everyone who participated. We’re looking forward to next year!