Young Farmers. Diverse skills inspire on farm innovation THE NEWSLETTER. A Growing Opportunities Initiative. Vol 19 Summer 2012

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1 THE Young Farmers NEWSLETTER A Growing Opportunities Initiative Diverse skills inspire on farm innovation On many successf sful u farms, do o it you oursel elf f (DIY) is a wa way y of lif i e. Dustin Williams and Laura McDougald-Williams have brought a particularly wide range of DIY skills to their grain and oilseeds farm west of Souris. When the couple were establishing their farm and buying out Dustin s parents, they relied on Laura s expertise as a lawyer to take care of much of the legal work. And when Dustin and his father Wayne came up with an idea for a better grain-drying system, Dustin relied on his own experience i as a commercial i l pipefitter i fitt to t build b ild the th device. d i That combination of business savvy and willingness to experiment along with a commitment to environmental stewardship won them the 2012 Manitoba Outstanding Young Farmers award. Environmental stewardship and innovation come together on the 4,000 acre farm where they grow wheat, rye, oats, barley, canola and flax. Souris Manitoba young farm family Dustin Williams and Laura McDougald-Williams with children Ardyn and Eva. We re long-term zero tillers, says Dustin, a past president of the Manitoba North Dakota Zero Till Association. We e try t to use healthy crop rotations and cover crops. We prom omote wild habitat on our property to reduce pests. As a zero-till farmer, Dustin rotates legumes into the th operation to build nitrogen in the soil. And as a fifth gen generation farmer working ng land homesteaded by his family in 1886, he s also committed d to reducing erosion and prote protecting the rivers and streams thatt border the farm, including includin a eight kilometre (five mile) stretch ch of the Souris River. Rive Vol 19 Summer 2012

2 "Half the job is planning for what we can do differently and better." Other innovations include technology to inject tractor exhaust into the soil while seeding, which Dustin says reduces both the nitrogen needed for the crop and the carbon released into the atmosphere. Experimenting with different techniques for applying fertilizer, such as spraying small amounts directly into the seed row, helps reduce input costs and run-off from excess fertilizer. We use a lot of micro-nutrients when we seed, he explains, and a lot of seed-placed nutrients to fertilize our fields. Dustin s willingness to experiment grew out of getting into agriculture during a challenging time. He graduated from the University of Manitoba s agriculture diploma program in 2000 and promptly encountered years of excess moisture, drought, and early frost. In the first several years he also worked off-farm as a commercial pipefitter. It was a sobering start for the business, he says. Because of that, we ve been continually looking to lower our costs per acre. We ve been aggressive in changing our equipment and processes to improve the bottom line. Half the job is planning for what we can do differently and better. Keeping on top of changing technology, practices and market swings involves continuous learning, such as attending workshops and conferences held by Manitoba Agriculture Food and Rural Initiatives (MAFRI) or other agricultural organizations. He often discusses issues with staff in MAFRI s Souris GO Centre and sits on a provincial advisory council for MAFRI. Planting a different mix of crops helps the farm operation manage risks and take advantage of opportunities, but Dustin admits that farming is inherently risky: I ve always been realistic about my expectations it s highly variable. You can t control all your risk. For Dustin, continuous learning also involves rolling up his sleeves and creating his own farm equipment. He points to his grain-drying system as an example. It blows dry air, through grain to dry it in about a third the time it would dry naturally. That home-made innovation saves time during the harvest and reduces the risk of spoilage. He s also interested in future innovations and follows developments like the locally grown food movement and the growth of aquaculture to see if they will open up new markets and revenue streams for the farm. Both Dustin and Laura have always been committed to country life. It s always been a calling, says Dustin, of his commitment to agriculture. I ve always loved being in the country, Laura says, having the wide open spaces and the room to play. She notes that, while her legal skills have been useful for her family s farm, her farm experience also helps her in her legal work. Much of her legal practice in the Souris is with farmers buying or leasing land, planning succession, or taking care of other legal matters in agriculture.

3 The couple, who have two pre-school daughters, Ardyn and Eva, are committed to the Souris area and the wider Western Manitoba community. Laura, who studied for her law degree at Montreal s McGill University, chairs the Board of Governors of Brandon University and was a member of the Assiniboine Regional Health Authority. Dustin is active with the Elks service club. And both were busy helping neighbours who were more profoundly affected than they were by the 2011 floods along the Souris River. We spent a lot of time last summer throwing sandbags, notes Dustin. Not surprisingly, it was helping others that brought them together. They met as teenagers, attending a conference for high school peer support volunteers. I think I've had for my whole life a strong interest in public service," says Laura. "I enjoy being engaged in the community." How MASC can help beginning farmers New farmers, even if they re experienced in parts of the industry, face a lot of major challenges. Some incorporate their parents experience while others choose to do everything differently. Either way, Manitoba Agricultural Services Corporation (MASC) has been helping beginning farmers for generations and prides itself on recognizing and meeting the needs of Manitoba producers. Here are answers to some of young farmers most frequently asked questions. How can I afford to start farming? For young farmers, MASC has some of the most affordable, attractive, agricultural loans available in Manitoba. Low interest rates, flexible financing options and rebate incentives on a significant portion of your loan principal, all create an excellent opportunity for young farmers to get started. The Young Farmer Rebate (YFR) part of MASC s Bridging Generations Initiative (BGI) offers farmers aged 18 to 39 a two per cent rebate on the first $150,000 of an MASC Direct Loan. The rebate is available in each of the first five years of your loan. With a lifetime maximum rebate of $15,000, the YFR supports young farmers who have big plans and tight budgets. The BGI flexible financing options also give you the choice of 90 per cent financing (to significantly reduce the down payment for your purchase) or five years of interest-only payments (to ease pressures on your cash flow). In your first year of farming, MASC s Young Farmer Crop Plan Credit also gives you a one-time credit of $300 on your AgriInsurance premiums. In return, you ll work with a MAFRI farm production advisor and learn how to complete your very first cropping plan. What s AgriInsurance and do I needed it? Most farmers call it crop insurance and more farmers make sure they have it in some form. AgriInsurance is MASC s flagship risk management program for farmers. It offers coverage on over 60 Manitoba crops for the natural perils of farming, including: drought, excessive heat, excessive moisture/rainfall, fire, floods, hail, wind, winterkill, disease, pests, wildlife/big game, waterfowl and more. Successful farmers use AgriInsurance they know how important it is to be covered.

4 AgriInsurance coverage for most crops is based on an individual productivity index (IPI). The index measures your individual history of harvested production against the history of your area s production to determine your current year s coverage. If you have no production history, your index number is determined by your area s average IPI. As you continue to farm, your individual harvest production becomes part of the calculation and begins to influence your yearly coverage. However, some coverage is not based on the IPI formula. Coverage for some crops (ex: grain corn, open pollinated corn, soybeans, vegetables, forage seed crops) is based on an individual coverage calculation that only uses your own history of production. In spring, AgriInsurance provides some farmers with partial coverage in case a crop needs to be reseeded or, in some cases, full coverage if a crop is lost between June 20 and harvest time. Because costs are shared between the provincial and federal governments (through Growing Forward, a federal-provincial-territorial initiative), MASC strives to make AgriInsurance premiums affordable and worthwhile. Does AgriInsurance cover hail damage? Hail damage is a serious threat to Manitoba farmers and for years, they have pooled resources to manage the risks of this kind of damage. MASC Hail Insurance, first offered in 1970, is entirely funded by farmer premiums and offers up to $175 per acre for most common crops (and up to $1,250 per acre for specialty crops). Applying for MASC Hail Insurance is easy. It s made even easier through the Continuous Hail Insurance Option, which automatically registers you for coverage against hail damage on your entire farm each year. What if I do everything I can and still get poor yields? Every year is different and AgriInsurance may not seem useful during years with bumper crops. However, farmers reap the benefits of their insurance investments during years when yields are down or crops are devastated. If your crop yields less than your assigned coverage (the number determined by your IPI or Individual coverage level) or at a grade lower than the MASC grade guarantee, because of common problems (ex: forces of nature such as drought, etc.), you will get compensation for financial losses. What if my crops are damaged by too many birds feeding on them or if big game/ predatory wi ldlife tak e my livestock? Less common threats, like migratory waterfowl or wild animals can also lower yields and livestock production. The Wildlife Damage Compensation program offers premium-free coverage to farmers for eligible losses caused by wildlife. The federal-provincial program is administered by MASC and reimburses producers for up to 90 per cent of losses on crops and livestock, including compensation for certain losses due to manure (faeces) contamination. How do I manage the provincial school taxes levied on my land, on top of all my other expenses? While all property in Manitobaa is subject to local school taxes, the Farmland School Tax Rebate gives farmers a significant rebate on taxes collected for farmland (up to 80 per cent in 2011). The provincial tax rebate program is administeredd by MASC. Once you are registered for the tax rebate program with MASC, you ll receive an annual pre-printed application listing the farmland you own that s eligible for the rebate. When you return the completed form, MASC provides the rebate. Over the years, MASC has become a one-stop shop for financial and risk management for farmers. Whether it s loans, guarantees, risk management, rebates, information, services, MASC s goal is to support young farmers and help build a strong rural Manitoba. For more information on how MASC can help you, contact your local MASC office or go to the MASC website at Along with a wealth of valuable information on MASC programs, it provides calculators, fact sheets, useful forms, insurance account updates and access to production reports, seed acreage reports, online hail insurance applications and many other tools to help you make the mo st of the corporation s services. MASC s website also offers the Manitoba Management Plus Program, wher e you ll find an assortmentt of information, such as agricultural thematic maps, current issues of Yield Manitoba, agronomic research and data browsers where you can compare your agronomic practices to other farmers within your area.

5 Ongoing support available for flood recovery To contact the flood recovery team in your region: Provincial Team Leader Darlene Oshanski call or (cell) in Winnipeg; or Recovering from a flood can take some time and most people need support. The provincial government has four flood recovery teams to help farmers, families, businesses and communities deal with the after affects of the 2011 flood. The teams are located in the regional health authorities in the Interlake, Central, Parkland and Brandon/Assiniboine areas. They are available to help Manitobans connect with the support services they need for issues such as farming or financial recovery and preparedness/protection from future floods. The teams also provide health and psychological/social services for issues caused by the trauma of flooding. As local residents themselves, team members are familiar with local issues and concerns and the services and supports available within their regions. Each team has three specialists: to work with individuals and families on the emotional/social impact of flooding and make referrals for stress management and counselling to work with groups on specific community health issues and provide referrals to other resources to work with farms and other businesses on solving financial problems Manitobans who need some help with flood recovery will also find the pamphlet After the Flood useful as a guide to signs and symptoms of short and long term stress caused by major floods. It includes information on: For a copy of the pamphlet, contact your local Manitoba Agriculture, Food and Rural Initiatives GO Office. Information about flood compensation and financial assistance programs is available at Brandon/Assiniboine Dan Jardine, mental health call ; or djardine@arha.ca Haley Gardiner, community health call: ; or haleygardiner@arha.ca Barb Breemersch, financial health call: ; or barb.breemersch@gov.mb.ca Parkland John Cail, mental health call ; or jcail@prha.mb.ca Pam Chetyrbuk, community health ; or pchetyrbuk@prha.mb.ca Barb Breemersch, financial health ; or barb.breemersch@gov.mb.ca Central: Bob Guenther, mental health call ; or rguenther@rha-central.mb.ca Dianna Meseyton-Neufeld, community health call ; or dneufeld@rha-central.mb.ca Paul Trimble, financial health call ; or paul.trimble@gov.mb.ca Interlake Irene Shaw, mental health/community health call ; or ishaw@irha.mb.ca Samantha Wilson, financial health call ; or samantha.wilson@gov.mb.ca Are you a young and beginning farmer looking to receive information by ? us at youngfarmers@gov.mb.ca to be added to our e-list*. * This personal information is being collected under the authority of Section 36(1)(b) of The Freedom of Information and Protection of Privacy Act (FIPPA) as the information is necessary for an existing service, program or activity of Manitoba Agriculture, Food and Rural Initiatives (MAFRI), that being for the distribution of the Young Farmer Newsletter. Your personal information is protected by the Protection of Privacy provisions of FIPPA. If you have any questions about the collection, contact the MAFRI skills development specialist,1129 Queens Avenue Brandon MB,

6 Legal guides can be helpful tools While all farmers know land is essential to their business, many are at a loss when it comes to the tax and legal factors involved with buying, selling and leasing it. As your operations grow and you develop your business, you are actually creating an estate and you need an estate plan to minimize tax and transfer your assets according to your wishes. Manitoba Agriculture, Food and Rural Initiatives (MAFRI) has two new legal guides that can help you with farmland ownership and estate planning. The Legal Guide to Plan Farmland Ownership in Manitoba answers many common questions about buying, selling and leasing farmland. It explains the different forms of ownership and the tax implications of land transactions. If you own land and lease it out, or if you lease land, it s important to know what the lease holder s rights are and what laws and considerations apply when buying and selling land. The Legal Guide to Farm Estate Planning in Manitoba explains how estate planning works and some of the tools available, including family trusts, family farm rollover, wills, power of attorney and health care directives. It is divided into two parts estate planning during lifetime and estate planning on death. Concepts are explained with examples to make them easier er to understand and apply. Both guides can help you make better business decisions and are available for easy downloading on the MAFRI website; or through your local MAFRI GO Office. DID WE MISS ANYONE? If you know any young farmers who did not receive a copy of The Young Farmers Newsletter have them contact us at youngfarmers@gov.mb.ca and we will gladly send a copy to them. SHARE YOUR THOUGHTS We d like to know what you think of The Young Farmers Newsletter, and what you d like to read about in future issues. your thoughts to us at youngfarmers@gov.mb.ca CALL OR WRITE US Manitoba Agriculture, Food and Rural Initiatives Economy and Rural Development Knowledge Centre 1129 Queens Avenue Brandon, MB R7A 1L VISIT THE YOUNG FARMERS WEBSITE MAFRI S website for young farmers provides you with detailed information on programs and services profiled in this newsletter and much more. You ll also find links to valuable resources on other public and private sector sites. Visit the young farmers website today at Prepared by Manitoba Agriculture, Food and Rural Initiatives. PM RETURN UNDELIVERABLE ITEMS TO Manitoba Agriculture, Food and Rural Initiatives 1129 Queens Avenue Brandon MB R7A 1L9