Will $3.50 Corn Cool the Bruce County Land Grab?

Cattle graze in the rolling hills of the former Elderslie Township in Bruce County.

An old corral sits vacant in a pasture abandoned for corn, still waiting to be harvested this spring.

In a county where a young Aggie might get chuckled at by topsoil-rich neighbours in southern Ontario, the geologically challenged fields of Bruce County were once the domain of countless bovine creatures. Dubbed "Ontario's cattle country", the rolling hills, scrubby fence lines and tree-spattered pastures were dotted with deep black, rich red, rusty brown, and dirty white cows and calves. Every breed imaginable to a young 4-Her could be found roaming the hillsides.

After BSE wiped out much of the market in 2003, the subsequent run up in commodity prices in 2008 led to a landscape transformation. As herds began to dwindle, traditional cattle producers turned their pasture land over and planted corn. While land prices soared "south of 86", the "north" offered reasonably priced land with solid potential, causing the land wars to heat up here too. Where the competition was once maybe a neighbour, more and more cash croppers from the south are expanding into the central area of the county. While others, seeing the potential to earn a small fortune, are buying pasture farms, clearing them and reselling them. "Flip this field" is in full swing.

The latest dip in the commodities is sure to cool the market a little. Especially, in "the Bruce" where 200 bu/acre corn is more a record than the norm and there are still some cattle around to distract those who leaned heavily on corn and soybeans in recent years. It does lead me to wonder; when the market rebounds, how long before Ontario's 'natural escape' is cultivated under almost completely? 

To be fully transparent, my family is equally profiting, cleaning up our own land and recent acquisitions to make room for yellow gold. Canada needs new young farmers, and in order to make a living today in this business, some scale and the accompanying efficiencies are critical. The time, labour and investment required to clear new fields still outweighs skyrocketing land rent. But cropping takes just as heavy toll on the soil here as it does in any area, so my family is increasingly focusing on soil health to sustainably maximize fertility. 

With the completion of our new dairy barn, next spring we will have composted manure, which will add valuable humus to our fields rather than just organic matter and nitrogen in traditional manure. Hopefully we will also be able to graze our cows next summer. In this part of the world, the symbiotic relationship between cattle and crops is one we understood long before rotational grazing was ‘au du jour’. It yields environmental and production benefits, and for me serves as a constant reminder of our interconnectedness, something I sometimes think agriculture loses sight of in pursuit of the bottom line.  

Visitors are still awed by the vast amounts of untouched land, and without an urban centre, a variety of thriving, and diverse ag businesses compliment Bruce County’s tourism sector to keep the economy turning. When other areas are boasting protection of their grasslands and sustainable beef, does turning this marginal land over for corn make the most economic sense? 

I can’t help but feel a little sad everytime I see another unmistakable mountain of tangled tree roots, hawthorns, and rocks spring up. The market might be telling us to plant 'fencerow to fencerow’, but is this the most sustainable option? Maybe we need to keep a few of those fencerows.

Mountains of brush among land still to be cleared.

A neighbour's pasture after clearing and tiling for soybeans.

 A hillside cleared of shrubs, trees and rocks makes for tempting, yet somewhat treacherous, cropland.

The high-hoe is a familiar sight now in many fields around Ontario including Bruce County.

"Big Bruce", the symbol of the county's once dominant livestock sector still greets west-bound visitors on Highway 21.  

Sticky Production - Agriculture's Version of Sticky Wages?

"Last time we were asked to feed the world, everyone planted more until 1985, when they continued to plant more, even though the market told them not too. We don't do a very good job responding to when the market tells us not to plant." Cal Whewell, 
FC Stone Risk Management Consultant

Since hearing this comment at the Grain Farmers of Ontario March Classic, I have been unable to shake it from my consciousness. It speaks so much to the traditional character of farmers, hanging onto the hope of a price rally and committed to production growth even when the invisible hand of the market wants anything but. In some ways, it is like the economist's sticky wage theory. When economies slow down, and unemployment is high, employers are unable to reduce employee wages despite excess available labour, whereas during boom times, competition for labour often drives prices up. In agriculture, we are easily coerced into producing more, yet scaling back is much more difficult. 

In the '80's, the U.S. government ended up introducing the Conservation Reserve Program, essentially paying producers to take acres out of production and stop the plunge. The signals Whewell spoke of today were not only falling new crop corn prices, but also the ongoing strength of wheat and soybean contracts. I believe he could have just as easily been talking about dairy producers. 

With the future of our Canadian supply management system at risk, I am intrigued by the latest market explosion playing out south of the border. The fundamentals of record high prices, record exports and low feed prices are returning profits to a sector which was devastated only a few years ago when prices collapsed in 2009. 

Source: IFCN Milk Price Indicator

The run up in prices has little to do with American dairy consumption, and is more so due to strong global demand, particularly from China, which is driving the world milk price to new heights. U.S. dairies are responding by expanding their herds and ramping up production, partially through imported Canadian heifers, as anyone who has been to a sale barn lately will testify. 

For me, this raises some questions. First and most importantly, with this strong demand and world prices nearing $60/100 kg, how much market are Canadian farmers missing? Also, how reliable is the long-term forecast for this market and will this above-average pricing hold? It didn't in the corn markets, despite the "feed the 9 billion" security blanket. The past two months, the price has already softened (Global Dairy Trade). Developing nation demand for dairy products is growing a rate double that of the OECD nations (OECD FAO Ag Outlook Highlights, 2013), but we are talking about nations where food still costs more than 1/3 of an individuals' income and the number malnourished is alarmingly high. 

Source: Washington State Magazine 

Supply and demand theory would dictate prices will fall as production is increased. I believe this will be the case, because as Whewell states, farmers have proven illogical in responding to market signals when its time to reduce production. Only time will tell if American farmers learned from the last crash and will slow production soon enough to avoid a similar fate. The removal of dairy price supports from the farm bill leaves producers with a margin insurance program, instead of the highly contested and overturned market stabilization program which would curb production during trough periods (supply management). 

Though not hoped for, it is likely the Margin Protection Program will prove its effectiveness soon enough, and we will have to ask ourselves if not supply management, are these the types of programs we can expect? Without external interruption, will Canadian producers withhold production in low times any more than our American counterparts? The next generation of producers is armed with degrees, and marketing know-how, but somehow I doubt the voice of austerity will prevail anymore north of the border. Dairy farmers will produce more milk, because that is what farmers want to do.

The Cost of Dirt Cheap Dairy

There are many voices in the debate over whether supply management is good for Canadians. Reality is these predictions are just that; they are expected outcomes crafted using best and worst case scenarios depending on who is crafting the position. In Owen Robert's recent post on RealAgriculture.com, he shares some of the dairy industry's common arguments. Without trying to create fear, I am taking this further as I think there are more questions consumers should consider in light of supply management's future and whether "dirt, cheap dairy", or any "cheap food policy" for that matter, is good for Canadians. 

1) What does a cheap food society look like? 

Contrary to popular belief, sustainable food systems need not always cost more but they do require farmers earn a comfortable living, which means netting a profit without working 20 hours a day. Most would consider this fair. While dairy farmers earn a good living compared to the average citizen, they are also running a business and often those returns must be reinvested in land, equipment or cattle. So, like any small business owner, they are often taking home more equity than cash.  

Furthermore, that return also allows them to use less intensive agriculture practices, resulting in less impact on the environment and cows (compare this to the large, super-dairies south of the border). Dairy farmers are very proud of their farms, putting great energy and time into their maintenance. One individual commented on Owen's blog pointed to the dismal New York rural landscape as an indicator of what 'cheap food' does to a rural society. I have heard this same comment from co-workers visiting Ontario; our well-kept fence rows mostly lack the rusty relics and vacant, blown over buildings commonly seen of rural American farmsteads. 

2) What is the cost of cheap food?

When margin is removed from the value chain, pretty quickly the entire value chain starts to feel the squeeze. As actions are taken to cut costs, the most critical element of the system is put at risk, food safety.

Frequent recalls in processed meats and produce could be partially attributed to the cheap food mentality. There should never be an excuse for actions which compromise human health and put lives at risk, yet we know large companies are under constant pressure to cut costs and increase production just to keep the lights on (and keep Canadians employed). It's not unreasonable to think in an environment where the bottom line is strained, less care may be taken or decisions which might otherwise seem inconsequential increase the risk of compromised safety. 

3) What does cheaper food solve?

As Owen already pointed out, it exists in Canada. Blessed to have never personally known the challenges facing low-income households, I do wonder if it's less a function of food prices and more about availability and proper education about healthy food preparation. 

The food desert is a well-documented issue in the U.S., and in Canada, we know there are also many regions, both within urban and rural areas where Canadians do not have access to fresh fruit and vegetables and healthy foods within walking distance. Compounding this, our schools no longer teach healthy cooking so while the edge of the supermarket is the cheapest route to the cash register, many resort to filling their cart with products from the centre aisles. Less nutrient dense and loaded with excess calories, fat, and sugar, these products may be more convenient, but are contributing to Canada’s tripling obesity rate. They are also more expensive.

   

You only need to watch one of the many food documentary trailers on YouTube to raise an eyebrow at the lengths the system has gone too to produce "cheap food". I believe the race to the bottom mentality with which our society has become obsessed is putting food production in a corner. Proper distribution of value, from farmer through the retailer and consumer ensures Canadians receive safe, healthy and sustainably produced food. Though great opportunity exists for reform in Canada’s dairy industry, sweeping changes intended to wipe out supply management may only hurt Canada in the long run.

The Dairy Farmer's Pledge

A friend shared  The Grown Woman's Pledge this week, and as I read it, I couldn't help but hear a different pledge echoing back at me through Dr. F. Emelia Sam's words. This is a pledge for dairy farmers. Canadian dairy farmers specifically. It goes a little like this:

I'm tired.

Tired of being criticized to no end in the media. Tired of watching grown farmers act like helpless children. Tired of atrocious finger pointing. Tired of polarizing depictions of free trade utopia and family farm demise. Tired of the moral judgements. Tired of the  politicking. Tired of the overall dumbing down of dairy farmers.

But most of all, I'm tired of the way that far too many of us have come to view ourselves and subsequently treat each other.

Who's responsible?

Processors? Pizzerias? Media? Dairy leadership? The government?

We can challenge and change all the policies we want and hide from all the external threats we can imagine. But, at the end of the day, nothing matters if we don't address our internal beliefs. We all know that nothing really changes if we don't change ourselves and our selves are all we have control over, anyway.

Whether supply management "should" or "shouldn't" be changed, whatever. Shouldn't we leverage our strengths? Strengths like highest-in class quality, globally-sought after genetics and abundant arable land and freshwater? Shouldn't we claim a leadership position on the global dairy stage? Should we allow ourselves to be put in a corner by outsiders or stand-up and show the world we CAN do this? Shouldn't ALL Canadians have access to healthy, affordable dairy products whenever they want them, wherever they want them and however they want them? 

Yeah, yeah. I'm supposed to be firm in my position that our system doesn't rely on taxpayers' dollars, provides a fair return for farmers and ensures reliable and consistent milk supply... blah, blah, blah. Sometimes you just have to call it like you see it. 

There is dysfunction when it comes to any market in this world and no system is perfect. Yet, many have mistaken this reality for a raison d'etre -- they are so accustomed to the mantra, they have let it define who they think they are as a dairy farmer in Canada. It's time to stop internalizing the non-stop excuses and act like the leaders we are.

So, if you are a dairy farmer, take the pledge. If you aspire to be a dairy farmer in 10 years, take the pledge. If you couldn't care less what happens to your industry, you're the one who needs to take the pledge most of all.

Like it. Share it. Most all, live it. We can do better.

1. Other dairy farmers are not my competition.

Enough you/me, big/small, here/there. Until there is more demand for Canadian milk (re: market growth), there will be no more quota for you, me, him or her. It is up to us to create room for more farmers -- not elbow each other out. 

2. I admit that gossip is pointless. (This is verbatim from Dr. Sam, and it applies here too.)

"Great minds discuss ideas; average minds discuss events; small minds discuss people." - Eleanor Roosevelt (a debated credit, but I'm going with Eleanor). Which mind do you have? Or are you just out of your mind? 

3. I acknowledge that dairy farming is self-defined.

Store feed in a silo or a bunk. Milk cows with robots or don't. Choose fancy cows or don't. There's a spectrum of dairy farmers and there will always be those with bigger and fancier. The only comparison you need to make is how you used to be and how far you've come. Do what you do. 

4. I recognize that farmers have value at every age.

Respect and learn from not only those who have gone before you but those who wish to come after you. This industry's strength was built on the grit and determination of thousands of great farmers, and it will soon be bore by far fewer, who are no less passionate.

5. I do not use my emotions as an excuse (to act the fool).

Emotions expose passion and sincerity. They can be shared, but don't use them to fight an economist. You'll lose every time. 

6. Take pride in your cows and land.

We have beautiful cows and farms. It has become part of who we are, and it sets us apart (along with a many other strengths). Never compromise looking after your cows and land.

7. I will show up.

There are no easy answers and tough decisions will be required. Read the reports, talk to fellow producers and attend your milk producers meeting to ask questions and learn. Understanding is participating. 

8. I always speak in my true voice.

Your voice is worthy of being heard. There is never any need to downplay the important job you do everyday, but remember you are owed nothing by consumers - they choose to to purchase dairy or not. 

9. I am a community hero.

Beneathe the coveralls you are a compassionate, determined, smart and generous being. You've donated over 10 million liters of milk to the food bank and countless hours to local service clubs, your kids' teams and agricultural organizations.

10. I will put my customer first

This means working with not only processors but retailers, restaurants and food service to get everyone the product they need so more people can enjoy dairy. All they need is cheese. So let's give it to them.

Do any of these resonate with you? Which parts of the oath have challenged or continue to challenge you? If you feel confident in your farmer status, feel free to share your wisdom. We need each other.

Adapted from Dr. F. Emelia Sam, "The Grown Woman's Pledge", The Third Metric, Huff Post, March 10, 2014

How Do You Change a Nation? Through Education, One Child at a Time

I'm so excited to share the video our EMBA group produced for the Dream School Foundation! I shared my experience visiting India with my church last night, and I talked so much I ran out of time to show the video!



It was a great reminder to post it and share now that it's online. Enjoy and give this amazing cause a further look. They are changing lives, which will change the state of India's society going forward.



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Agriculture Glass Ceiling - Why Is it Still There?

With the latest elections, the Dairy Farmers of Ontario now have a grand total of zero women on their Board of Directors. That's right - 0. As a young woman growing up in the industry and passionate about its future, this is not just disheartening but disappointing. Women are very involved at the local level in committees and breed associations, but few have sat around the provincial board table and even fewer at the national level.

Sadly, DFO is not unique in the demographics of their boardroom. After a quick, unscientific search, the results were dismal:

A recent Ivey Business Journel article cites a study which found at a minimum 3 women are required on a board for their participation to be effective. The article provides solid arguments why a minimum standard would not change the current, low levels of participation. In my opinion, all mandated minimum appointments achieve are representation. It will probably not entice more women to become involved nor will it ensure the best candidates, which this industry and all agriculture desperately need to direct the future.

If not mandated then, how can we get more women involved and close the gender gap around our board tables?

First, we need to start asking WHY they aren't there. This has been a recent topic of Twitter and Facebook conversation and my friend Sandi wrote about it just last week here. The common theme is often around time. There is only so much of it and only one parent can often be involved at an industry level. Hmmm sounds familiar.

But women are very involved in the local level, and another friend once said "all politics are local". Can the same not be said for our provincial and national associations? Perhaps not. Even IF a local committee has monthly meetings (fewer meetings is more common), there is less travel involved and it may require one weeknight with some weekend volunteering. Contrast this to the commitment of a DFO Director - at least 12 two-day meetings, plus various committees, the AGM and travel. It's daunting for anyone - young, old, man or woman.

In an age where Goto meeting and Webex are nearly free and individuals are doing business around the world through digital technology and never setting foot in the same room, is this archaic governing necessary or is it a hangover of the 'good ol days' where the real business was done in the hospitality suite? Don't get me wrong, I am no stranger to the hospitality suite and I place very high value on face-to-face meetings. I also place very high value on my time though, and in 2014, there seems like there may be more effective ways.

I consistently hear agricultural associations are looking for younger people to get involved in their board. Instead of trying to convince them why it's worth their time, maybe it's time to start looking at how your board could start leveraging the tools available to reduce the time required. Most youth know why board involvement is important and want to be involved. 

Making Children's Dreams a Reality

"We are here. We are the citizens of this country; the responsibility lies on us."

If in all we experienced last week while in India, if we hadn't spent the last two days with the Dream School Foundation, we would have still had a very rounded understanding of the country, but I'm not sure if we would have had so much hope.

If you read my last post, which was written immediately before arriving in Bangalore, in the Southern State of Karnataka, you will better understand the conflict I was feeling. We were there to work, whereas most of our group's meetings were complete so they were ready to kick back and relax. In some ways, it was mentally soothing to me we would not have such luxury. I just did not believe we deserved it, though it was awfully hard for me to decline the safari trip some went on.

We arrived at DSF late. Our driver had the wrong address, so we ended up seeing the better part of Bangalore. Of the five regions we visited, it was by far the nicest we had seen yet. This tells you a lot about India though, because even here in this city of 4.3 million people, with one of the highest literacy rates in the country, there is a need for organizations like Dream School Foundation.

Describing DSF to friends over the past few months was often a challenge for me. Meeting them and witnessing their work firsthand completely changed this. This is an organization that fills the cracks in the lives of India's children like glue. In some cases, literally; their work includes infrastructure support for government schools like installing toilets and repairing roofs. They also provide libraries, science labs, transportation assistance & computer labs. This is all in addition to academic programming and mentoring that focuses on learning level enhancement, comprehension and engagement to help children discover their interests, obtain high school and post-secondary education. The goal is they will move into a career and break the cycle of poverty and desperation most grew up with. Integrated Education Model suits their work well and you couldn't imagine a more holistic program than this. 

One need not look at many stats to understand just why such an approach is needed.

• Over 50% of students drop out between primary and high school
• 37% of schools have a toilet for girls
•  53.4% of children in 5^th standard read at 3^rd standard level
• While the national literacy rate for males is 82%, it is only 65% for Indian females 

DSF volunteers and employees told us countless stories of young people succeeding in spite of their circumstance, and yet others who weren't so lucky. It broke our hearts, so we couldn't imagine the pain they must go through, personally knowing these kids. 

Sometimes I think the word 'inspiration' is overused. What does it mean to be inspired? Is it just a good feeling? A different outlook or personal commitment to change? Does it mean anything without action? I can't imagine my actions to come close to those of the DSF team, but they really are an inspiration to me. Their passion to make a difference was raw and visible in their expressions, voice and gestures. Most left successful corporate careers in order to be the change they believed India desperately needed. 

"If we don't do it, who will clean the mess here? It has to be grassroots level work."

There is no more real passion than this.

Our Ivey team with a group of students at JC Nagar Government School in Bangalore, a school supported by DSF.

A group of Ten Plus youth studying to enter engineering school outside the Dream School Foundation Learning & Development Center,

Cherise speaks to 7th standard girls at the government school.

Heather with some of the girls.