LIVESTOCK NOTES
Al Kennett

We had a very successful Northeast Missouri Performance Tested Bull Sale, March 31. At least the consignors felt that way. Buyers may have thought it was a little too good. The averages follow:

• 33 Angus - $2545
• 2 Polled Hereford - $1800
• 5 Simmental - $1770
• 40 Head - $2410
• 6 yearlings - $1950
• 34 18-26 months - $2493

It appears that using EPD’s as a means of selecting breeding stock is finally being accepted by most buyers. We surveyed the buyers at our bull sale this year. One of the questions was, which of the available EPD’s they used in selecting bulls. The results follow:

• 87% used Birth Weight
• 66% used Growth Traits
• 58% used Milk
• 49% used Carcass

I was sure pleased to see that nearly half are using carcass EPD’s in their bull selection.

Are you still looking for a bull? If so, give me a call. I work with several breeders who have bulls for sale. There are still a few 18 month and older bulls available, but not many.

Synchronizing Heifers

The Show-Me-Select Replacement Heifer program has stimulated a lot of producers to use at least a part of the program with no intention of consigning to a sale. Several are doing the pre-breeding work of measuring pelvics and reproductive tract scoring. Also a number of producers are synchronizing heifers. I would like to share some tips with you that my co-worker Eldon Cole suggests that will help you with your synchronization efforts.

• Have your veterinarian palpate the heifers for a tract score about 2 weeks before MGA feeding starts. Best synchronization results occur on heifers that are tract scores 3’s, 4’s and 5’s. It’s recommended that 50% or better be 4’s and 5’s meaning they’ve had at least one heat period.
• The most popular synchronization system is to feed .5 milligram of MGA per head per day for 14 days then wait 19 days to inject a prostaglandin into them then breed on standing heat 2 to 5 days later.
• 0.5 milligram MGA isn’t very much so first of all make sure your feed supplier puts the proper amount in the batch. Use 3 to 4 lbs. per head per day as a carrier.
• Pre-feed the identical feed without the MGA for at least 1 week ahead of MGA feeding.
• Provide 2 linear feet of bunk space per heifer and that’s just for one side of most narrow troughs.
• Feed once a day. If heifers are on lush pasture and hesitant to eat, consider drylotting them the night before.
• If after a couple of days you see heifers standing to be ridden, the standee probably isn’t getting her 0.5 milligram.
• After the 14 days of MGA, continue the original ration through the AI period.
• Use a 1 ½ inch 18 gauge needle for the prostaglandin. Give it in the morning.

The above tips are for synchronizing and breeding A.I. If you are going to use natural service you will need lots of bull power!! It would probably be better to just feed the MGA for 14 days, wait two weeks and turn the bulls with them. It won’t group them as tight as when you use the prostaglandin shot, but will require somewhat less bull power.

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As corn planting approaches, fields should be scouted for potential early season pests. Seedcorn maggots, seedcorn beetles, and wireworms can have destructive effects on germinating and young corn.

The seedcorn maggot is active in April and May, and most commonly found in early planted fields with high levels of organic matter or crop residue. Damage is more severe when emergence is delayed due to cool, wet weather. The yellow-white maggots are ¼-inch long, legless and headless. These maggots burrow into seed, after which the seed will either not germinate or produce a weak seedling. Adults are gray, ¼-inch long, and resemble houseflies.

Insecticides should be considered when an early-planted field is contains a large amount of manure or recently incorporated spring vegetation. There are no rescue treatments for seedcorn maggot.

Two types of seedcorn beetle, active in April and May, cause damage to corn; both are a-inch long. The slender seedcorn beetle is a red-brown beetle; the seedcorn beetle is brown with two dark stripes on the wing covers, and is shorter and wider than the slender seedcorn beetle. Damage is most likely to occur in no-till fields where the furrow is not completely closed, or when wet, cool weather delays seedling emergence. These beetles are opportunistic, and attack when insect prey is in short supply. Rarely found on plants, the beetles can be seen scurrying across the soil surface. (There are many beneficial species of beetles which are similar in color and shape to seedcorn beetles; the beneficials are generally larger than seedcorn beetles.) There is no rescue treatment for seedcorn beetles; if a field is spot replanted, a seed treatment insecticide can be used if the soil is predicted to remain cool.

Wireworms larvae are found April through mid-June, and range in color from yellow to orange to red-brown, and range in size from ½- to 1 ½-inches long. The segmented larvae are attracted to the carbon dioxide emitted by germinating seeds and are active when soil temperature is between 55 and 75 degrees F. Eggs are laid near the roots of grasses; therefore, injury is most severe in corn following long-standing pastures, meadows, and wheat. Wireworms cause a range of damage, from tunneling into germinating seeds to feeding on roots, boring into the below-ground plant base, and drilling upward into the stalks of older corn. Seedlings which have been damaged often become stunted and wilt as the soil dries; occasionally blue or purple marking is evident on leaf tips damage. Severely damaged plants may exhibit dead heart, a condition where the center, or new, leaves of the plant die.

There is no postemergent treatment available for wireworm control. Control methods should be used based upon either the field history or the results of a wireworm bait station. In a field up to 30 acres, 5 to 10 bait stations should be constructed 2 to 3 weeks prior to the anticipated planting date. To assemble a bait station, a 2- to 3-inch deep, 6- to 9-inch wide hole is dug and filled with a half cup each of (untreated) corn and wheat. Soil is then domed over the station, and the mound is covered with a layer of black and clear plastic, and weighted down with soil. Several days before planting, the grain is dug up, and wireworms counted. The economic threshold is one wireworm per bait station. Control methods include seed treatment and in-furrow or banded insecticide. Seed treatments with insecticide are typically used when wireworms are present, but below the economic threshold; the treatment only protects the seed and does not benefit seedlings. Banded or in-furrow insecticide applications are more effective than seed treatments, and may be justified when more than one wireworm per trap is found. Another option is delaying corn planting until the soil temperature has sufficiently warmed, reducing the time seeds and seedlings are susceptible to wireworm damage by allowing for rapid germination and development.

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Dr. Don Smith

U.S. Farms, Where Are We and Where Are We Going?

Anyone with economic or emotional interests in farming is concerned with the changes taking place in the U.S. farming industry. It has never been more dynamic than now. A question frequently asked of farmers, University Professors, Extension Specialist, and others associated with agriculture is "where do you think the U.S. farm is headed?" If you ask this question of 100 agricultural professionals you will get 100 slightly different answers. One of the most perceptive descriptions of the current farm industry and future trends was given by Kenneth H. Thomas, Extension Economist in Farm Management for the University of Minnesota from 1959 to 1992. He described farm operations in terms of farm size and dependence on off-farm sources of income to remain in business.

According to USDA statistics referenced by Thomas, in 1997 about three-fourths of the 2,057,910 farms in the U.S. were best described as "hobby" or "small part-time" operations. They produced 11% of the total gross farm income while off-farm income were required to cover net-farm losses of firms in this category. Farm numbers in this category have declined by about 50% in the past two decades.

I agree with Thomas’ forecast that the number of farms in this category will continue to decline as it becomes increasingly difficult to operate at a profit at this size. I also point out the trend will occur at a faster rate in some commodity groups than others. For example, the pork and poultry industries are concentrating at a faster rate than beef and crops.

In 1997 the "dual career" and "small sized" commercial farm group represented about 9% of U.S. farms and 9% of gross farm income. In 1990 (the most recent year for which numbers are available) off-farm income provided about half of the net income of the typical family in the group.

Remaining farms in the full-time commercial farm groupings, were described by Thomas as moderate-size, large-size, and super firms. These groups totaled about 17% of U.S. farms but accounted for 80% of gross farm income.

Of special interest is the fact that "super firms" amounted to 1% of U.S. farm numbers but produced 30% of total gross farm income. In 1990 off-farm income accounted for 2% to 20% of their net farm income.

While the number of farms is declining a pattern of greater diversity among those remaining is developing. This is in terms of labor and capital managed and net returns received.

Some farmers continue to spend a major part of their time supplying skilled labor to the farm business. They have little desire to hire and manage additional labor. Thomas places these in what he terms the "labor-oriented league." They place a ceiling on their potential earnings.

At the other extreme, some farm operators have shifted their work emphasis from the supplying of skilled labor to the management of people and capital. They tend to incur a high level of debt on the large and super size farm. For this group, management skill is the most critical resource. Although the opportunity may present itself for large net returns with good management decisions, the alternative is true for losses with inadequate management resources.

Regardless of the league producers are in, either "labor" or "capital," they are increasingly dependent on and susceptible to U.S. government decisions and policies. Government program payments have a direct impact on net farm income. Indirectly, farm operations are affected by policy issues such as interest rates, availability of capital, environmental regulations, and exports.

To survive in the new millennium farmers must devote a greater amount of time and resources to record keeping, information analysis, and marketing. Management resources may be procured by upgrading personal skills, procurement of consulting services, or some combination. Production consultants are commonly used in the areas of crop fertility, weed, and insect control now. Operations that refuse to provide adequate resources in the areas of management and marketing will likely require escalating amounts of off-farm income to remain in business.

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John Wheeler

Cow Herd Mineral Supplementation

This article was written by Bob L. Larson, DVM, PhD, Beef Veterinarian and Reproductive Physiologist, Commercial Agriculture Beef Focus Team

The primary mineral needs in Missouri are for salt and phosphorus. There are many commercial mineral supplements available that will meet the needs of cows, but these supplements are usually more expensive than what you can mix yourself.

Calcium content of grass stays pretty much the same all year, but phosphorus is leached out, so that by mid-winter, levels are very low. The phosphorus in feedstuffs (both grain and forages) is often not highly available (the exception is alfalfa) therefore, although feedstuffs commonly supply more than half of the phosphorus in the diet, they supply less than half of the phosphorus that is available to the animal. Also, it is important to realize that both the calcium and phosphorus requirements increase greatly during lactation.

A simple mixture of salt and a phosphorus source will meet the needs of most cows on most forages. Dicalcium phosphate is the phosphorus source I use most commonly. You can also use steamed bone meal (usually more expensive) or monocalcium phosphate as phosphorus sources. Limestone (calcium carbonate) is a good source of calcium, but has no phosphorus.

Cows should eat 2-4 oz. salt/phosphorus mix per day (.125-.25 lbs). Force feeding is preferred, but often not practical. Loose free-choice mineral sources should be kept dry and refilled at least weekly.

A standard mixture is 2 parts trace mineralized salt and 1 part dicalcium phosphate. If the cows are not eating enough of the mixture add 5% grain, molasses, wheat mids or soybean meal to improve the flavor. If the cows are eating too much mineral (a $ problem, usually not a health problem) increase the amount of salt in the mixture. If phosphorus deficient forage is being consumed, change the ratio to 1 part trace mineralized salt and 1 part dicalcium phosphate.

During periods when hypomagnesemia (grass tetany) is a danger, the following mixture is recommended: 30% trace mineralized salt, 30% bone meal or dical, 30% magnesium oxide, and 10% dried molasses (due to low palatability of MgO). This mixture will supply about 18% Mg.

There are some questions as to whether you need to use trace mineralized salt or regular salt. Most herds will do equally well on regular salt in the mixture if their forages contain adequate levels of trace minerals. Higher producing cows have higher requirements for trace minerals. Depending on your needs, you may want to replace one-half of the trace mineralized salt with salt.

Bioavailability of Phosphorus From Various Sources for Cattle

* Miller, Michigan State University 1980 Review
** Relative biological value compared to dicalcium phosphate (CaHPO₄ 2H₂O) as the standard = 100

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FARM MANAGEMENT NOTES

Bob Wells

Legal Issues in Agriculture

Many of the day-to-day activities of producers involve commitment that have legal implications. Understanding these issues can lead to better risk management decisions.

Legal issues cut across other risk areas. For example, acquiring an operating loan has legal implication if not repaid in the specified manner. Production activities involving the use of pesticides have legal implications if appropriate safety precautions are not taken. Marketing of agricultural products involves contract law. Human resource issues associated with agriculture also have legal implications, ranging from employer/employee rules and regulations, to inheritance laws.

The legal issues most commonly associated with agriculture fall into four broad categories: appropriate legal business structure and tax and estate planning, contractual arrangements, tort liability, and statutory compliance, including environmental issues.

The first legal issue that many family farms encounter is the nature of the entity under which the business is to be operated. Often, through lack of attention, sole proprietorship is automatically chosen. However, alternative entities exist including partnerships, limited partnerships, limited-liability companies, and corporations (both Subchapters C and S) as well as a wide variety of trust arrangements. In addition, many States, and the Federal Government, have special statutory provisions for farms meeting certain criteria, such as "family farm" provisions.

Income and property tax consequences at the local, State, and Federal level vary significantly, depending upon the legal entity chosen. Some structures lend themselves to the avoidance of estate and the ease of administration during probate. Liability to third parties is also a consideration ins structural decision, as is ease of operation within the chosen structure.

Estate planning considerations may arise in the course of making structural decisions. Estate planning mechanisms range from simple wills to family farm corporations with complex inheritance provisions. Trust, both living and testamentary, are often included in estate planning.

Contractual arrangements in agriculture take many forms. A contract is any agreement (verbal or written) where the parties exchange mutual promises in return for some sort of consideration or benefit.

Contracts include financial arrangements, such as promissory notes and mortgages. Leases and crop share arrangements are contracts. Many State and Federal farm programs are contractual in nature, such as the Conservation Reserve Program. Sale of agricultural products is often accomplished by contracts for future performance. Crop insurance coverage is also based on a contractual agreement. Even employment arrangements, although often not written, are treated as contracts.

A basic legal issue pertaining to contracts is their enforceability. For instance, many States have what is know as "statutes of frauds," which require that certain types of agreements be in writing before they can be enforced. Examples of contracts which often must be in writing before they are considered valid include agreements for the sale of real estate and agreements which cannot be performed within one year.

Assuming a contract is legally enforceable, a concern arises as to nonperformance by a party to the contract. Obviously, nonperformance can come from the producer or form the other party to the contract. In many instances, contracts specify what constitutes events of default and the remedies of the various parties in the event of default. If the contract is unclear, the courts generally employ two types of relief for breach of contract: specific performance and damages. In the case of specific performance, the breaching party is ordered to remedy the default and fulfill the contract. If specific performance is not possible or reasonable, damages are awarded to compensate the party not in breach.

Contractual nonperformance can have ramifications well beyond the scope of the contract itself. For instance, the inability to meet contractual financial obligations to your mortgage lender may result in foreclosure. Alternatively, it may force you to seek other legal recourse, such as debt restructuring or liquidation in bankruptcy.

A huge variety of statutory mandates apply to farmers and ranchers. These include tax reporting and payment obligations, wage and hour and safety requirements, compliance with nondiscrimination statutes, termination of employees, use of pesticides and herbicides, participation in certain farm programs, and many more. Although many in agriculture are not fully aware of their legal obligations, failure to comply may have serious consequences in terms of fines, penalties, and abatement.

Tort liability arises from the negligent or intentional infliction of damage to a person or property. This type of liability is commonly insured under a general liability insurance policy.

The simplest type of tort arises where someone is injured on a farm property. In recent years, tort liability has broadened significantly, to include what may be classed as employment torts, such as wrongful discharge. Another area of expansion has been in the so-called "toxic tort" area in which adjacent landowners, public groups, or others assert liability for damage to air and water quality on account of agricultural activity.

Pollution laws are major concern for producers. The line between point and non-point pollution is being erased by the courts. Many of the newer liability policies exclude coverage for pollution claims entirely, forcing producers to purchase special pollution policies. The pollution policies that are available contain unique characteristics that are unfamiliar to producers. Managing liability risks begins with understanding liability insurance coverage.

Beyond having the proper liability coverage as protection, producers must be prepared to deal with possible criminal prosecutions by State and Federal agencies for environmental events. Liability insurance affords not protection from criminal penalties assessed against a producer by regulatory agency. Producers can greatly reduce their criminal liability exposure by formulating and following environmental audit procedures. Many good farmers fail to keep records necessary to prove compliance. Accurate records should be kept on the applications of herbicides, pesticides, and fertilizers.

When entering into an contractual arrangement, either oral or written, you should be concerned about what happens if a disagreement between the parties arises. How will disputes be handled? What is the appropriate jurisdiction if the contracting parties do not reside in the same county or State? Is one party liable for court costs and attorneys fees?

When contacting an attorney, you should ask for basic information about the attorney’s familiarity with the law for particular situations. Attorney’s are like other professionals in that they often specialize. For example, a good contract attorney may not have much expertise in estate planning. You should have a good understanding of fee arrangements, billing cycles, expected costs, etc., for any matters that will involve your attorney.

It is a good practice to visit an attorney prior to entering into a business transaction rather than after the transaction has gone bad. Preventive actions are often cheaper and less time consuming.

Many States have publications on various legal topics available from the State Bar Associations. The University of Missouri and University of Missouri Extension service has lay publications about legal issues. However, for issues and concerns specific to your operation, contact a qualified attorney.

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These publications may be obtained from your local University of Missouri Extension Office.

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