January 25, 2010 Purchasing Used Farm Equipment from a Dealer An Alberta Agriculture and Rural Development inspector says that, by following a few basic steps when buying used farm equipment, a purchaser can help shield themselves from future problems. “Purchasing good used farm equipment can be a way of reducing equipment costs on your farm,” says Robert Martin, farm implement inspector, Edmonton. “There are several things you can do at the time of purchase to avoid any potential disputes with the dealer later on.” Martin says it is very important to physically and thoroughly inspect the equipment at the dealership. “Do not assume the condition until you have seen it. Ask the dealer for an on farm demo of the equipment if possible and practical. Rent the equipment from the dealer for a day or two to see if it is suited to your farming operation. Ask questions and be as informed as possible regarding to condition of the equipment.” Used equipment carries no warranty unless it is specified on the sale agreement. If any warranty is discussed and agreed upon, make sure it is written on the sale agreement. “If repairs to the equipment are negotiated with the dealer, include the details and terms of the repairs on the sale agreement,” says Martin. “Ensure the sale agreement contains a full description of the equipment – make, model, year, serial number, hours and attachments to the equipment. The sale agreement must be signed by the dealership and the purchaser.” For further information on purchasing used farm equipment, call 310-FARM (3276) from anywhere in Alberta and asked to be connected to Robert Martin, farm implement inspector. Contact: Robert Martin 310-FARM (3276) This Week Purchasing Used Farm Equipment from a Dealer 1 Mustard Production for Alberta 2 Maximizing Value from Backgrounded Calves 2 Creating Value in Value Chains 3 Producer Risk Management Meetings 3 Agri-News Briefs 5 January 25, 2010 – page 2 Mustard Production for Alberta Mustard is a significant special crop that has a farm gate value ranging from about $50 million to $100 million annually. In Canada, mustard production is focused primarily in the southern prairie regions of Alberta and Saskatchewan, involving 370,000 to 740,000 acres (150,000 to 300,000 ha) and producing up to 300,000 tonnes of mustard seed annually. Canada is a world leader in condiment mustard seed marketing, accounting for 70 to 80 per cent of global exports, annually. “Mustard is a relative of canola but tends to be more tolerant to drought, heat and frost,” says Dr. Ross McKenzie, agronomy research scientist with Alberta Agriculture and Rural Development. “Mustard has allowed producers in the drier regions to add an oilseed crop to their rotations, which has helped disrupt pest cycles, increase moisture use efficiency and increase farm income.” To achieve optimum mustard yield and quality, the first important step is field selection based on previous crop and residue conditions. Using diverse crop rotations that include three or four different crops is generally the most desirable crop production practice. “Mustard is commonly grown in rotation with small grain crops,” says McKenzie. “Ideally, mustard should follow a cereal crop. Generally, mustard is not subject to the same insect or disease pressures as cereal crops. A break of several years between canola and other mustard types is needed to minimize volunteers that would contaminate the grain and lower the grade. “Mustard should not follow pulse or oilseed crops. Under high potential yield conditions, mustard is susceptible to the disease sclerotinia (Sclerotinia sclerotiorum), which also affects most pulse crops such as pea or lentil and oilseed crops such as canola, flax or sunflower.” A factsheet, Mustard Production for Alberta (Agdex 143/20-1) was recently produced and is available from Alberta Agriculture and Rural Development. The mustard factsheet topics include: • mustard types and uses • production and variety selection • cropping systems and rotations • water use and yield • benefits and establishment • seeding and fertilizing • weed control, disease management and inspect pests • harvesting, drying and storage To view this factsheet, visit the Alberta Agriculture website at www.agriculture.alberta.ca/publications. Alberta Agriculture’s publications and other resource material can also be ordered by calling 310-FARM (3276). Contact: Dr. Ross McKenzie 403-381-5842 Maximizing Value from Backgrounded Calves “With last fall’s calf prices being unacceptable, many cow calf producers had chosen to keep their calves over the winter on a backgrounding ration to try to market the calves into a stronger market,” says Ken Ziegler, beef specialist, Alberta Agriculture and Rural Development, Rocky Mountain House. “However, with expensive forage costs from last summer’s drought, additional grain has been used to offset the need for forage in the ration. This has resulted in added gains and lowered the cost per pound of gain. The challenge is to keep the cost per pound of gain below the value of the additional pound gained.” In a stable price scenario, Ziegler says it is critical that the weight gain of the cattle is cheaper than the market price for that pound of gain. If the weight gained is 75 cents per pound of gain and the selling price is 85 cents, then the feeding venture is adding value to the calf even though the margin is slim. “The question is whether the calf prices will stay stable, rise, or drop, which leads to choosing when to market the cattle.” Another challenge producers face is trying to maximize the value of the calf when selling it. Many marketing choices exist that vary in advantage. Factors like risk of price and shrink come into play that will eventually affect the net profit in the seller’s pocket. “The web site, www.foragebeef.ca, contains some excellent factsheets in its marketing folder which can help with these challenges,” says Ziegler. “Shrink is a common reality that is not always fully understood that affects profitability. A number of well-written factsheets on shrink are among the wide array of marketing factsheets available on the site.” Known by its address, www.foragebeef.ca provides producers with an excellent assortment of information relating to both current Canadian agricultural issues and technical information on forage and beef production. There are three levels of information within the technical section of the site. Level one is the straight forward ‘cut to the core’ type of information that visitors may want on a particular topic. Level two is for the reader that wants more information Cont’d on page 3 January 25, 2010 – page 3 about a particular topic, while level three is a collection of scientific review papers, research abstracts or summaries and links to research communities through out Canada and the world. “As with any researching, you’ll come to the point where you’ll want to talk with someone,” says Ziegler. “Because marketing conditions affect management practices, it is important that you contact someone that is credible to the topic area and your situation. People from government or from private industry will be able to help you best. To contact someone from Alberta Agriculture and Rural Development, dial 310-FARM toll free.” Contact: Ken Ziegler 403-845-8204 Creating Value in Value Chains Creating Value in Value Chains is a one-day business intelligence workshop with a follow up day being held February 16 and 17, 2010, in Red Deer, Alberta. “This workshop is an excellent opportunity for those involved in livestock or fresh food value chains or other strategic alliances to find out about the local and international tools available,” says Margurite Thiessen, value chain specialist, Alberta Agriculture and Rural Development, Stony Plain. “If you are working on collaborative efforts to deliver products in the livestock or fresh food sectors, you will want to let your staff and chain partners know about this workshop.” The workshop itself features a number of excellent speakers and presentations. “Michael O’keeffe, is a company director and advisor to fresh food firms globally, and is a founding coordinator of the Global Fresh Food Innovation Network, which is a group of fresh food companies from the UK, USA, Canada, and Australia who share best practice and innovation ideas,” says Thiessen. “O’keeffe’s interactive session highlights the execution lessons from successful value chains and the challenge of partnering with retail customers. Value chain diagnostic tools such as material flow, information flow and relationship audits will also be presented. Michael will draw on a series of international case studies from the UK, New Zealand, Canada, and Australia to illustrate the benefits to primary producers and processors from participating in retailer-aligned value chains. The case studies cover a range of sectors including beef, lamb, pork, eggs and produce.” Other speakers include: • Randy Baldwin, CMC., principal, Kelwin Mangement Consulting has over 25 years of business management, development and planning experience in the agriculture industry. He will be presenting on the meat value chain resources identified for the potential for the livestock industry interest. • Ross Drever, software engineer, Drever Technical Solutions Inc., provides custom software development along side enterprise support services to keep businesses running efficiently. Ross will be presenting information on an inventory model being tested with one Alberta meat value chain. He will discuss the application and technology requirements for its potential use in other meat value chains. • Dr. Sven Anders, assistant professor, department of rural economy, University of Alberta, who is focused on value added meat marketing and a member of the Alberta Veterinary Research Institute (AVRI) Council, along with Gregory Bott, graduate student and student member of Agriculture and Food Council, will present information on an international beef value chain research project they are working on with Australia. “Following the workshop there is opportunity to sign up for one-to-one discussions on February 17, 2010,” says Thiessen. “These sessions are available to your company to meet with Michael O’keeffe to ask more questions related to the diagnostic tools and creating value in your chain specific to your value chain project or development. When you register please indicate your interest in booking one of these sessions.” The program is made possible through Growing Forward and Alberta Agriculture and Rural Development. Registration is $45 per person (including GST. and lunch). The registration deadline is February 9, 2010. To register, phone 1-800-387-6030. Contact: Margurite Thiessen 780-968-3513 Pat Ramsey 403-652-8303 Producer Risk Management Meetings Agriculture Financial Services Corporation (AFSC) and Alberta Agriculture and Rural Development are holding a series of 18 producer risk management meetings the week of January 25 to January 29, 2010. “At these meetings, information on current soil moisture conditions will be compared to previous years as we approach spring,” says Barry Yaremcio, beef and forage specialist. Alberta Agriculture, Stettler. “AFSC will discuss risk management tools available such as forages and pasture insurance, AgriStability, AgriInvest, and the new fat cattle price insurance program. Cont’d on page 4 January 25, 2010 – page 4 Alberta Agriculture staff will discuss strategies for managing and feeding livestock under dry conditions with emphasis on using annuals for grazing to reduce stress on perennial pastures.” The following is a list of meeting locations. All meetings start at 1:00 pm. South Region Jan. 25 Oyen Canadian Legion Jan. 26 Medicine Hat Exhibition Grounds Grandstand Banquet Room Jan. 27 Foremost Foremost Community Hall Jan. 28 Lethbridge Sandman Hotel Jan. 29 Strathmore Strathmore Civic Centre Jan. 25 Hanna Hanna Legion Jan. 26 Olds Olds Legion Jan. 26 Stettler Ag-Plex Jan. 27 Ponoka Moose Hall Jan. 28 Castor Castor Community Hall Jan. 29 Wainwright Wainwright Communiplex Jan. 25 ElkPoint Elk Point Pioneer Circle Jan. 25 Peace River Belle Petroleum Centre Jan. 26 Grande Prairie Stonebridge Hotel Jan. 26 Smoky Lake Ukranian Nation Hall Jan. 27 Tofield Tofield Community Hall Jan. 27 Mayerthorpe Mayerthorpe Diamond Centre Jan.28 Westlock Westlock Inn Central Region North Region Contact: Barry Yaremcio 310-FARM (3276) January 25, 2010 – page 5 Agri-News Briefs Bedding Plants Production Workshop Marketing – What Every Rural Business Needs to Know The Bedding Plants Production Workshop is an excellent opportunity to learn about methods for growing high quality bedding plants and hanging baskets, as well as gaining further knowledge about the industry, industry trends, energy conservation ideas and disease management. Business and marketing tips with a focus on attracting more customers round out the agenda. The workshop is being held at the Crop Diversification Centre North in Edmonton on February 24, 2010. This one-day workshop is sponsored by the Alberta Greenhouse Growers Association (AGGA) and organized by the Greenhouse Resource and Extension Assistance Team (GREAT). Registration is $63 (includes GST) for AGGA members and $84 (includes GST) for non-members. Session handouts and lunch are included. Seating is limited to 40 participants, so early registration is recommended. To register, call 780-489-1991. For more information and workshop details, e-mail drmirzagreen@gmail.com or mohyuddin.mirza@agga.ca. Today, businesses seeking above-average results must understand and manage other elements of their business equally well. One of the most important of these is marketing. Whether a novice or experienced when it comes to marketing, this workshop will provide information about why marketing needs to be the first and foremost thing to consider when developing or diversifying your business plan. Learn to choose and implement essential marketing tactics and see how other agribusinesses use these techniques to boost their sales and profitability by attending this marketing workshop in Airdrie on March 9, 2010. Registration is $50 (lunch included). For more information, go to www.farmcentre.com/workshops.