Agriculture’s Time To Shine

Alastair Summerlee

The president of the University of Guelph says it’s time for agriculture to take centre stage to face the significant problems of a changing world.

Dr. Alastair Summerlee was the keynote speaker at the Southwest Agricultural Conference in Ridgetown Jan. 5.

Summerlee says food production must increase by 100 per cent in the next 50 years to meet the demands of a growing population.

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Furthermore, he says the challenge to double food production comes at a time when urban growth is reducing the amount of agricultural land available for growing crops and raising livestock.

Summerlee says seventy per cent of the new food will have to come from innovation as well as increasing production and yields across the world.

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He says farmers, the agriculture industry and universities will have major roles to play in meeting the challenges.

Summerlee also says agriculture is ushering in a new era as people are realizing the importance of farming in the developed world.

In Ontario, he says agriculture is a key economic driver, surpassing manufacturing and health care as the province’s largest employer.

FarmzOnWheelz A Hit With School Groups

Students try out an IPod, powered by manure, in the FarmzOnWheelz exhibit, under the watchful eye of Project Manager Sue McLarty

The FarmzOnWheelz project of the Ontario Farm Animal Council received an enthusiastic response from school groups during its recent stop in Ridgetown.

The traveling exhibit, built by the Ontario Science Centre, was on display at the Ridgetown District High School from April 28 to May 1.

It features several portable kiosks that are “wheeled” out of a trailer, which are then set up at various events and locations.

Equipped with interactive displays, fast-paced videos and large touch-screens, the kiosks showcase many aspects of agriculture – from local food production to renewable fuels.

The concept is to make the educational messages about agriculture more appealing to young people and teenagers.

Dollar Dominates Farm Market Talk

Philip Shaw

Of all the factors affecting the prices that farmers receive for their crops and livestock, the value of the Canadian dollar will be the one to watch in 2010.

Ontario-based market analysts Philip Shaw and Moe Agostino stressed the importance of the stronger Canadian dollar in their presentations at the Western Fair Farm Show in London on March 11.

Setting the scene for the cash crop markets, Shaw said the latest series of reports on March 10 from the United States Department of Agriculture has created a bearish tone for corn, soybean and wheat futures in Chicago.

For corn, the Dresden-area farmer says the USDA has estimated large supplies with the size of the 2009 U.S. corn crop at 13.13 billion bushels and ending stocks of 1.8 billion bushels. On soybeans, Shaw says the prices will be pressured by the huge crop coming from South America as Brazil and Argentina are setting production records. As for wheat’s situation, Shaw says it may be the most bearish of three, given the cumbersome U.S. carryout of 1.8 billion bushels.
While it will be important to watch how weather and planting conditions in the U.S. will change the tone of the futures market, Shaw suggests that Ontario farmers pay closer attention to the Ontario basis. In the following clip, Shaw gives his outlook for the corn market and explains the importance of the Ontario cash market.

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Meanwhile, Shaw says the Ontario corn market could get a boost from more ethanol production this year. In fact, he expects the province will be able to produce enough of its own ethanol to meet the target of five per cent ethanol in Ontario gasoline by the end of the year.

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Moe Agostino

The impact of the dollar also played a prominent role in the livestock market presentation from Moe Agostino, marketing commodity strategist for Farms.com Risk Management.
Agostino warned the audience that there is room for the Canadian dollar to gain even more strength.

“The dollar has been trading in this narrow range between 93 and 98 cents U.S. But we remain bullish, we have been projecting par to $1.05 since the beginning of last year,” says Agostino.

The bullish outlook is based on the relative weakness of the American economy. Agostino says investors will continue to lack confidence in the U.S. as long as the government runs huge deficits. With talk of a second government stimulus package and President Obama’s proposed health care plan, Agostino remains skeptical that the U.S. government will rein in its spending.

The potential of the rising Canadian dollar is the main negative factor in Agostino’s outlook. Otherwise, he says lower hog and cattle supplies in the U.S. and Canada and improving consumer confidence are giving the beleaguered livestock markets some hope.

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Echoing Shaw’s comments, Agostino says livestock producers should look for pricing opportunities from changes in currency values. He also urged farmers to understand the seasonality of their business.

In the following clip, Agostino explains how cattle producers can use the seasonality of their markets to manage their price risks. Play:

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Besides knowing the seasonality of the markets, Agostino also stressed the familiar refrain that producers – be they livestock or cash crop farmers – should know their cost of production when it comes to marketing.
“If you don’t know what (price) you’re shooting for, how do you know if you’re making money?”

Growing Energy: Conference Explores Farm Sources of Biomass

Farmer Bryan Gilvesy speaking at Biomass Conference, Nov. 24

A conference at the Ridgetown Campus of the University of Guelph brought together a diverse group of farmers, energy producers and researchers to explore the potential of biomass.

Biomass is  plant material from agricultural and forestry sources that can be used to produce energy.

The driving forces behind biomass include the overall  interest in reducing greenhouse gases and Ontario’s move to replace coal in the generation of electricity. Ontario Power Generation is targeting 2012 as the year when it will begin using biomass as a replacement for coal in some of its electricity plants.

OPG  Environmental Scientist Gerry McKenna says they’re evaluating several agricultural sources of biomass. These include many grass crops like miscanthus and switch grass. Crop residues like corn stover are also being considered.

The goal is to produce a sustainable supply for the coal-fired plants without having to use food crops for fuel.
OPG is targeting the Atikokan Generating Station to be the first station converted to biomass fuel. It will be followed by other stations in Thunder Bay, Lambton and Nanticoke.

Click play button below to hear McKenna explain OPG’s interest in biomass as well as the challenges of using biomass as an energy source.

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Meanwhile, an agri-business expert is cautious about the potential of the emerging biomass market. On the plus side,  Professor David Sparling from the Richard Ivey School of Business at the University of Western Ontario says biomass presents a new market opportunity for farmers.

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Sparling says biomass is a shift in technology from fossil fuels that is not being driven by economics, but by a need to do things differently because of climate change. Sparling adds that  biomass will have to make economic sense for farmers and processors to be a viable market. He says the economics of biomass could be best driven by carbon trading markets where people are paid for doing things that are more environmentally sustainable.

In the clip below, Sparling discusses the challenges of the emerging biomass market.

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An example of what Dr. Sparling is talking about – compensation for environmentally sustainable practices – is being demonstrated on a farm in southern Ontario.

Norfolk County farmer Bryan Gilvesy believes tallgrass prairie has enormous potential for producing biomass as well as improving the environment. He says the environmental benefits include sequestering carbon, protecting water resources and providing a habitat for key pollinators such as bees.

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Gilvesy’s farm, which grows 46 acres of tallgrass prairie,  is a demonstration site for the Norfolk Alternative Land Use Services project. The pilot program tests the idea of paying farmers for the environmental services they perform.

A perennial grass called miscanthus is also emerging as a potential crop for biomass. Leamington farmer Dean Tiessen grows miscanthus for use in his greenhouse business. In essence, he grows one crop outside to help produce greenhouse tomatoes – his valued-added crop that is grown indoors.

He says miscanthus is a perennial crop that is planted once and grows for many years with little or no inputs.

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Tiessen, Sparling, Gilvesy and McKenna were just four of several speakers at the  November 24th conference “Agricultural Solutions for Energy: Biomass”.  It was part of the Research to Receptor Series 2009.

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Do-it-yourself Biodiesel

Participants learn finer points of biodiesel at workshop

A portable demonstration plant is giving farmers and others interested in renewable fuels a chance to learn more about biodiesel production.

The demonstration plant is operated by the Canadian International Grains Institute (CIGI).

Rex Newkirk, director of biofuels and feed at the Institute, is conducting workshops with the mobile unit this week (November 17-19) at the Ridgetown Campus of the University of Guelph.

Biodiesel is a diesel fuel replacement made from renewable resources like animal or plant fats.
Newkirk says biodiesel has two key benefits for farmers. It gives producers of oilseeds crops – such as soybeans – another marketing opportunity beyond food consumption and animal feed.

Meanwhile, Newkirk says producing biodiesel on the farm could help livestock producers that use soy meal. He says they could crush or press the seeds to get the soy meal for the animals and then use oil to produce their own biodiesel.

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Rex Newkirk at Ridgetown workshop

CIGI's portable biodiesel plant

Newkirk says the biggest challenge of producing biodiesel on-farm is the amount of time it takes to understand how the process works.  He suggests that a group of farmers using a cooperative approach would be a more economical and time-effective process.

Safety is also a key consideration. Newkirk says biodiesel is non-toxic and non-flammable. But he says substances used to process it – like lye and methanol – are hazardous, and people need to know how to handle them safely.

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During the workshops, participants made small batches of biodiesel as they learned about each stage of the production.

Ridgetown’s Farm-Scale Plant

Participants in the workshop had the chance to see a demonstration facility at Ridgetown that is designed to make it easier for farmers to produce fuel from their farms.

Matt McLean, Executive Director of SOBIN – the Southwestern Ontario Bioproducts Innovation Network – says a farm-scale plant has begun producing biodiesel from recycled vegetable oil. The next step is to add a crushing operation so that the fuel can be made from soybeans.

McLean says this Ridgetown plant will play a key role in demonstrating the new technologies as well as evaluating them for on-farm use. The plant can be used to test various feedstocks as well as the economics of producing the biofuel. The research could then be used by farmers or other groups to determine if producing biodiesel on the farm is worth the investment.

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McLean says the biodiesel plant is part of SOBIN’s work with the University to research and develop commercial opportunities for bio-products.

Suncor Doubling Sarnia Ethanol Capacity; Move Could Fuel Other Biofuel Production

Suncor Energy has announced it is resuming the expansion of its St. Clair Ethanol Plant near Sarnia, Ontario.

The $120 million construction project, expected to be completed in late 2010 or early 2011, will double the plant’s current ethanol production capacity from 200 to 400 million litres per year.

According to the company’s news release, the project will benefit the Sarnia-Lambton area through the creation of 350 jobs during construction and 15 new jobs to operate the expanded plant, as well as supporting demand for feedstock — approximately 40 million bushels of corn annually — from local farmers.

How Soybean Production Might Benefit

The expansion may also lead to the production of other biofuels. With an eye toward developing a value-added market, the Ontario Soybean Growers (now part of the new Grain Farmers of Ontario organization), AGRIS Co-operative and Suncor Energy have been studying the potential for a facility that could process specialty soybeans.

Dale Petrie, general manager of the Soybean Growers, envisions a bio-refinery, capable of producing a variety of plant-based oils for industrial uses. The diverse list of potential applications includes making compostable plastic bags and parts for car interiors.

While the idea of such a plant may be several years away from reality (if at all), a value-chain for high oleic soybean oil is emerging.

I wrote about this potential new market (before the announced expansion in Sarnia) in the October issue of Top Crop Manager magazine.

It all starts with new soybean varieties that have been developed to produce oil that is high in oleic content.

This feature has attracted the attention of food companies because  high levels of oleic acid increase the stability of the oil when used in frying and food processing applications while reducing or eliminating transfats in food products.

This high stability would also be of interest  to industrial users, perhaps seeking ways of replacing petroleum-based oils with renewable alternatives.

The key to the market for farmers, according to Petrie, is being able to connect it with Canada’s highly respected Identity Preserved (IP) system.

“The big difference is that most IP markets that farmers are accustomed to are the food-grade types, which are non-genetically modified,” explains Petrie.

 “Farmers can grow these new varieties under a glyphosate-resistant system. There’s a certain percentage of farmers who like the weed control of glyphosate-tolerant crops, but they also want to add some value to the crop.”

 And Petrie says value could be derived from segregating the high oleic soybean oil.

 “You don’t want to dilute your high oleic oil and hurt the process with oil from traditional soybeans. If a manufacturer is set up to use the new high oleic oil, the process has to be continuous.”

Producing high oleic soybean oil alone would be too expensive. That’s where the ethanol plant expansion comes into play. Petrie says the corn processing would help offset the cost of crushing the soybeans.

He adds the soybean facility would need to be flexible so it could produce other specialty oils in the future.

For more on the story,  see the October Top Crop Manager

 Other links: Suncor’s News Release

New Measures To Deal With Farm Stray Voltage

A former dairy farmer who has waged a long battle to get the province to deal with the problem of stray voltage is applauding a recent move by the Ontario Energy Board. The Board is implementing amendments to the province’s electricity Distribution System Code related to stray voltage as it affects the farm sector.

Lee Montgomery of Chatham-Kent hopes the changes will give farmers the confidence to file a complaint if they suspect they have a problem with stray voltage or ground current pollution, as it is sometimes called.

Farm stray voltage refers to voltage or current occurring on the farm where livestock make contact with it and which may have a negative effect on livestock. Montgomery’s case is perhaps the best known in Ontario. He blames stray voltage for ruining his prize-winning dairy herd and putting him out of business.

Montgomery was the youngest person then ever named as a Master Breeder by the Holstein Association of Canada in 1971.  A few years later however, Montgomery noticed that his cows were skittish and did not eat properly. Other problems included a low conception rate, a disproportionate number of bull calves and a higher mortality rate in calving.

After a long process of elimination, Montgomery was recognized by the Ontario Ministry of Agriculture, Food and Rural Affairs in 1980 as the first farmer in the province to have documented issues with stray voltage in both his barn and home.

While pleased that stray voltage has finally been deemed a serious problem, Montgomery’s efforts to raise awareness continue. Although stray voltage is expressed more quickly and easily in dairy cows, Montgomery strongly feels  the problem is a much wider health and safety issue, affecting all classes of livestock and people as well.

“The cows got us in the door,” says Montgomery, referring to the need for farmers to come forward if they think they have a stray voltage problem.

Barry Fraser, an agricultural business consultant who has been part of a Working Group with Montgomery on the issue, says the new legislation provides some important milestones that should assist farmers when they make a claim.

Of note, the acceptable threshold limits have been significantly decreased to 0.5 volts from 10 volts. “That is to the point where stray voltage mitigation is supposed to take place to the satisfaction of the producer,” says Fraser, noting that the new threshold level is the lowest of any jurisdiction in Canada and possibly  North America.

Other key points of the amendments include:

• Distributors must investigate farm stray voltage complaints using qualified people;
• Where a distribution system is found to contribute to stray voltage on a farm in excess of a specified threshold, the distributor must take steps to reduce stray voltage to acceptable levels; and
•  Distributors serving livestock farm customers must prepare and make available a farm stray voltage “customer response procedure that sets out the process for responding to farm stray voltage inquiries and complaints from customers”.

 The amendments, announced by the Ontario Energy Board in June, will go into effect in mid-September.

Ottawa Motorists First to Fill’er Up with Cellulosic Ethanol

Customers at a Shell service station in Ottawa will become the first in the world to fill their tanks with gasoline blended with a biofuel made from wheat straw.

 The month-long demonstration should make for an interesting experiment in the food versus fuel debate. Cellulosic ethanol is often touted as a better alternative to corn-based ethanol because it uses crop residues.

In this case, the 10 per cent-blend is made from wheat straw. The biofuel is produced at the nearby Iogen Corporation demonstration plant in Ottawa.

Iogen and Shell are partners in the plant, which now produces 40,000 litres of fuel per month.

The gasoline, containing 10% cellulosic ethanol, went on sale June 10. Although company officials say it will be some time before cellulosic ethanol will be available to a wider market, they regard the Ottawa event as an important step toward the future.

Farm Power

The federal government is chipping in $1.6 million for a new facility in Leamington that will turn food and agricultural waste into clean energy and fertilizer.  Touted as a Canadian first, Seacliff Energy Inc. is building an anaerobic digestion facility to transform vegetable waste from local farms and greenhouses into electricity that can be sold to the Ontario power grid, into heat that can be sold to greenhouses, and into organic mater that can be sold as natural fertilizer.

“Fuel costs have killed us in the last few years and we’re looking forward to a less expensive, more consistent and greener source of heat and energy,”said Dennis Dick, Seacliff partner and owner of the adjacent greenhouse.

The project is expected to generate $2 million in annual company revenue by 2010. The facility is expected to open in the fall of 2009.