National 10 Broadcaster Press March 15, 2016 www.broadcasteronline.com Week March 13 ~ 19 Grassland Harvest Conserves, The Final Brick Puts Money In Farmers' Pockets Countdown: 500 To Go The USDA's Farm Service Agency established the Conservation Reserve Program (CRP) 30 years ago in an effort to improve water quality, reduce soil erosion, and increase habitat for sensitive wildlife species. The program pays rent to farmers in exchange for land to be taken out of row crop production and planted with species that improve environmental quality. Thereafter, the land and its cover crop are to be left essentially untouched for the duration of the 10- to 15-year contract. But what if the biomass from CRP land could be harvested as a source for bioenergy? A team led by University of Illinois researchers set out to determine potential biomass yield and economic benefits of using CRP land to meet government mandates for ethanol production. "In 2008, we started long term research at the field scale. We wanted to estimate CRP biomass yield and best management practices, including nitrogen application rates and harvest timing, to maximize yield," notes the study's principal investigator, U of I agronomist D.K. Lee. Along with collaborators, Lee identified CRP study sites in Georgia, Kansas, Missouri, Montana, North Dakota, and Oklahoma. In each 20-acre research site, nitrogen fertilizer was applied to one acre plots at three rates (0, 50, and 100 lbs per acre). Plots were also harvested at two times: at the peak of biomass production, which differed according to the mixture of species planted at each location; and/or at the end of the growing season, after a killing frost. Maximum yield reached 3.5 and 6.4 metric tons per hectare (2.5 acres) for warm-season and cool-season grass mixtures, respectively, depending on location, fertilizer application rate, and harvest timing. "Nitrogen application increased biomass yield," says Lee. "And we don't have to worry as much about nitrogen runoff for perennial CRP crops like we do with row crops. Even if excess nitrogen were applied, it would be held in the system. That's the beauty of perennials." Despite positive effects of nitrogen fertilizer in the study systems, economic analyses showed that the yield increase did not justify the costs of fertilizer purchase and application. Adding fertilizer increased the total operating costs of biomass harvest up to 225 percent, depending on application rate and location. "We also learned that precipitation during the growing season was a critical factor, since the study period included the severe drought of 2012," explains Lee. "That result provided evidence that we need long-term studies like this one to really understand yield dynamics." Although farmers are currently not allowed to harvest biomass from CRP land, the researchers believe that dedicated bioenergy feedstock production could meet the stated goals of the CRP program, particularly if commodity prices increase. "Right now, commodity prices are low, but we know they will go up again. When that happens, people could make more money by converting CRP land back to row crops. But CRP is highly erodible land and could cause significant water quality issues if converted," cautions Lee. "Alternatively, the government may have to increase rental payments if commodity prices go up, to keep farmers from converting their CRP land." One scenario offered by the researchers was a 25 percent rental reduction in years when farmers harvest biomass from CRP land, and an allowance to harvest one third of the acreage per year. If this were implemented, the total cost to the government of operating CRP in the six study states could be reduced by $31 million annually. "Although this scenario would generate only one third of the potential biomass for the developing cellulosic bioenergy industry, it would allow for the utilization of otherwise unharvested lands and likely provide economic benefits for land owners, biomass processors, and the U.S. government, while preserving soil resources." The article, "Impacts of management practices on bioenergy feedstock yield an economic feasibility on Conservation Reserve Program (CRP) grasslands" was published online in December 2015 by GCB Bioenergy. Lead author Eric Anderson, economist Madhu Khanna, and principal investigator D.K. Lee are from the University of Illinois. Contributors from six other institutions co-authored the paper. Funding was provided by the North Central Regional Sun Grant Center at South Dakota State University through a grant provided by the U.S. Department of Energy Office of Biomass Programs. n From South Dakota Ag Connection Farm Bureau Cautions Against Crop Insurance Cuts By Kristin Vandersnick South Dakota Farm Bureau “With farm families facing a year of projected below-cost returns on corn, soybeans and wheat, the last thing agriculture needs right now is a cut to federal crop insurance,” said Scott VanderWal, who raises crops and livestock by Volga, S.D., and serves as president of the South Dakota Farm Bureau. VanderWal noted that federal crop insurance already experienced cuts in the last Farm Bill, and Farm Bureau and others had to fight to reverse $3 billion in cuts in the omnibus package in late 2015. The $18 billion in budget savings comes from two proposed The 2017 budget proposed by President Obama includes $18 billion in cuts to the federal crop insurance program over 10 years, a move Farm changes to crop insurance: lowering by 10 percent the crop Bureau says would weaken a safety net for U.S. agriculture at a time when farm and ranch families are facing another year of tough economics. insurance subsidy for harvest price protection buy-up, and changing how actual production following sharp drops in 2014 and 2015 totaling history is handled after a producer makes a 56 percent in those two years. If the 2016 prevent-plant claim. income projection is realized, it would mark the “Crop insurance is one federal program that lowest farm income level since 2002. works as intended. It helps us stay in business “Farm Bureau continues to work toward during times of negative margins, protecting expanding international trade and creating the stability of our national food supply—and more markets for our products,” VanderWal therefore our national security. Farm Bureau added, “as well as highlighting the need for a stands against opening up the Farm Bill to renewed focus on financial management and revise the contract already in place between the sharpening farmers' and ranchers' marketing government and our nation’s food producers,” skills.” VanderWal said. South Dakota Farm Bureau is the state’s According to USDA data released on Feb. largest general agriculture organization, 9, farmers’ incomes are projected to decrease representing more than 16,000 farm, ranch and by 3 percent in 2016. This will be the third rural families across the state. consecutive year of declining farm income, HURON – The capital campaign for the Nordby Exhibit Hall for 4-H, Youth and Community is nearing the finish line. “The Final Brick Countdown: 500 to Go” is the push to engrave 500 bricks to complete the last leg of the South Dakota State Fair Foundation’s $4.7 million campaign for a new exhibit hall in Huron. A donation of $1,000 toward the capital campaign is recognized with an engraved Sioux quartzite brick. Many individuals and families have chosen to etch their name in history by reserving an engraved brick that will be permanently placed in front of the Nordby Exhibit Hall. Options for engraving include a farm or ranch name, business name, in memory or in honor of a loved one or family/extended family name. Multiple bricks can be created for one donor. For example, a donation of $3,000 is recognized with three bricks. Donations can be paid all at once or over the course of a three year period. Supporters can follow the last leg of the campaign on the State Fair Foundation’s social media sources which will feature a running tally of remaining 500 steps. Gifts of any size are welcome and contribute to achieving the goal. To celebrate past and present major donors, each individual donor who provides or has provided a gift of $1,000 or more will be entered in a drawing for these prizes: 1. Two VIP tickets to a grandstand concert of choice. 2. Complimentary on-grounds camping space during SD State Fair. 3. VIP parking for SD State Fair. 4. Complimentary carnival pass. The drawing will take place after the campaign’s goal has been reached. The prizes are redeemable for the 2016 or 2017 State Fair. The exhibit hall will serve as a statewide home for South Dakota 4-H. When finished, the 48,000 squarefoot structure on the west side of the fairgrounds will feature more than 30,000 square feet of exhibit space, multiple classrooms and a large kitchen for 4-H Special Foods competitions. The facility will be utilized year-round for 4-H events such as learning activities, meetings and competitions. In addition, the facility will host conventions, trade shows, receptions and other gatherings throughout the year, bringing in more than 200,000 visitors. The building’s grand opening will take place during the 2016 South Dakota State Fair scheduled for Sept. 1-5. Those interested in supporting the capital campaign are invited to contact the State Fair Foundation at 605-553-4251 or visit www.sdstatefairfoundation.com. Funds Available for Specialty Crop Advancement PIERRE –The South Dakota Department of Agriculture (SDDA) announces that funds are available for Specialty Crop Block Grants. The funds can be used for marketing, promotion, research, food safety, nutrition, distribution and best management practices to advance the specialty crop industry. Specialty crops are generally defined as fruits, nuts, vegetables, honey and some turf and ornamental crops. A full list of specialty crops is also available on the SDDA website http://sdda.sd.gov/. “Specialty crops in South Dakota provide opportunities for small producers and local food systems offering fresh products and unique valueadded businesses. Specialty crops can help round-out development in communities of all sizes across the state,” said South Dakota Secretary of Agriculture Lucas Lentsch. “These funds help us support this growing niche of South Dakota agriculture.” Stakeholders have identified this year’s top priorities as enhancing the competitiveness of specialty crops through increased sales, increased consumption and sustainable practices of specialty crop production. The deadline for applications is May 2, 2016. Details explaining the application are available at https:// sdda.sd.gov/grants/specialty-crop-block-grant/. Applications should be submitted via email to bob. weyrich@state.sd.us and four printed copies including an original must be mailed to SDDA at 523 E Capitol Avenue, Pierre, SD 57501. For additional information please contact Bob Weyrich, program manager, at 605.431.8002 or visit him at SDDA’s Western Ag Development Office at 711 North Creek Drive, Rapid City, SD. Agriculture is a major contributor to South Dakota’s economy, generating $25.6 billion in annual economic activity and employing over 115,000 South Dakotans. The South Dakota Department of Agriculture's mission is to promote, protect, preserve and improve this industry for today and tomorrow. Visit us online at http://sdda.sd.gov or find us on Facebook and Twitter. 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