2009 AdFarm North Dakota Crop Sold!

By North Dakota Farm Boss, March 4, 2010

With approval from the AdFarm North Dakota farm marketing committee, Cooperating Farmer Fred Lukens sold the remaining AdFarm pinto beans for 24 cents per pound on Monday morning, March 1st, 2010. Unfortunately, the break-even price on the remaining AdFarm pinto beans was 29 cents per pound.  The AdFarm N.D. farm marketing committee faced these realities:

  1. Free storage from Larimore Bean, owner of Sharon Bean receiving station, ended on March 1, 2010.   Storage would be charged at .1¢/month after March
  2. Despite apparently friendly market fundamentals, the pinto bean market did not have a significant post harvest rally.  The Larimore Bean price peaked at 27¢/lb. in early January.
  3. 2011 new crop contracts were offered for a short time @ 23¢/lb. in late January.  These contracts sold out quickly.
  4. Despite rumors to the contrary, potentially market moving USDA “food for peace” tenders expected in late February did not materialize.

Lukens projected an approximately $1,900 net loss ($27/acre) for the 2009 AdFarm N.D. crop. Exact per share values will be calculated at for the early April AdFarm N.D. farm annual meeting. Marketing Committee Member Carina Emil says, “It’s been a long time since our AdFarm N.D. farm has lost money. This is a learning experience for all of us, and we learn when we win and when we lose. To keep this in perspective, we should remember that if we average our AdFarm N.D. farm income and loss for the past two years, we show a $4,300 profit.  Pinto beans were the right crop to grow this year. This time, Mother Nature and the markets worked against us.”

Pinto beans full frame close up

The AdFarm N.D. farm an educational investment of AdFarm and its employees. In 2009, 130 employees purchased an average of slightly more than 4 shares at a price of $25 per share.  This year we experienced the down side of taking a risk.

Our North Dakota Farm Partner Fred Lukens and his family, have their own blog about farming on the prairies. Visit the Griggs Dakota Blog for pictures of the AdFarm pinto bean crop from seeding to harvest.

2009 is behind us and we’re looking ahead to 2010.

Your thoughts on our 2009 crop marketing decision?

Ideas for 2010?

Growing canola on the AdFarm Alberta Farm.

By Ron Wall, February 18, 2010

We’re doing our part to make Canola Council’s Growing Great 2015 strategy a reality.

As more people discover the health benefits of canola oil for human consumption, animal feed and as biofuel source, the greater the demand on Canada’s canola industry to increased production. So we’re going to do our part and grow canola – varieties are yet to be determined – on our Alberta farm as part of the Canola Council of Canada’s Growing Great 2015 strategy. The Canola Council represents the entire Canadian canola industry – growers, crop development and protection companies, processors, and exporters.

According to the CCC, Growing Great 2015 is “an ambitious plan to take the Canadian canola industry to 15 million tonnes of sustained market demand and production. The industry will focus on those markets for which canola’s primary attributes – high oil yield and low saturated fat – will create superior value and benefit human and environmental health.”

So just how ambitious is the plan? By way of contrast, canola production in Canada in 2006 was 9 million tonnes and the anticipated 2009 yield is set to be in the neighborhood of 10.3 million tonnes. Ambitious, but definitely achievable.

Good for people:

Canola oil is the healthiest commodity oil available to consumers, the food service industry and food processors.

Canola oil contains the least amount of saturated fat (7%) of any common edible oil, with the remaining 93% healthy monounsaturated and polyunsaturated fats.

The polyunsaturated fats in canola oil are essential omega-3 and omega-6 fatty acids. The omega-3, alpha-linolenic acid, may help prevent heart attacks and strokes. The omega-6  linoleic acid is important for the brain and essential for the growth and development of infants.

Good for livestock

Canola meal is used as an animal feed for dairy cows, pigs and poultry.

Its unique characteristics are especially valuable in the dairy industry, where it has been shown that including 20% canola meal in a feed ration improves milk production by one litre per cow per day.

Good for the economy

Canola adds $14 billion annually to Canada’s economy.

Canada produces 15% of the world’s supply of canola/rapeseed, but it is responsible for 75% of its global trade.

Canola is the No. 1 cash crop for 50,000 Canadian farmers. And the canola industry employs more than 216,000 people across Canada in production, transportation, crushing, refining and food development, manufacturing, and service.

(Source: Canola Council of Canada)

Find out more about Canada’s canola industry, check out the Canola Council of Canada.

If you were planting canola on your farm, would you choose a hybrid like InVigor or an open pollinated variety?

Ron Wall crafts the perfect balance of strategic, creative and agronomic communications for AdFarm clients. He can be reached directly at Ron.Wall@adfarmonline.com

AdFarm Calgary growing peas in 2009

By admin, December 22, 2009

Once again, we will be growing field peas on our farm this year. Hail wiped out our crop last year but fortunately our farm partner, Graham Farms, had hail insurance so shareholders will get a return of approximately $20 per share.

Peas were planted in early May and we will be updating shareholders throughout the season on the progress of our crop.

Shares for Sale

Shares are $25 each or 5 for $100 and can be purchased by payroll deduction or cash/cheque. We will be selling shares for the remainder of the week so drop me a line and let me know how many you would like to purchase.

Payroll credits and deductions will take place on the June 15 payroll. We will be keeping track of shares sold on our Pea-Metre in the Calgary office and will send a photo update as the week rolls on!

Thank You!

Special thanks to Ben Graham, our Farm Partner and to the rest of the A-Team (Adrienne Peckitt, Amanda Kooy and Andrew Colvin) our Farm Committee for this year.

Plan B: AdFarm pinto beans harvested

By admin, November 9, 2009

It wasn’t ideal, but the AdFarm pinto beans were harvested by an alternative method on Thursday, November 5.Cooperating Farmer Fred Lukens reported that he started harvesting the AdFarm fields at approximately 2:30 in the afternoon and finished at 11 p.m. with his 1688 self-propelled combine and 30-foot flex head. The total production for the AdFarm fields was 101,041 lbs. of grade #1 pinto beans. This is an average yield of 1,443 lbs. per acre.

Harvesting the pinto beans with the flex head is not the normal harvest procedure on the Lukens farm. He explains, “We usually run a Pickett one step ahead of the combine to cut, lift and windrow the pinto beans. Yet with our October snow and rain and the prediction for more rain on November 8 and 9, we didn’t want to risk losing the entire crop snow. I’m guessing that we left close to 500 lbs. of pinto beans per acre on the field by flexing the crop compared to our traditional harvest method. As always, Mother Nature holds the cards. Farmers try to play the hand we’re dealt as best we can.”

The average moisture of the AdFarm pinto beans was 18.2%. This is higher than the desired 16% moisture pinto bean processors require for long term storage. The higher moisture resulted in a 2.5% moisture dockage reduction. The beans earned #1 grade based on the low deductions for splits, unacceptable beans (pick) and foreign material. The AdFarm beans graded 1% splits, .15% pick and .2% foreign material for a total of 1.35% dockage deduction. This is an above average dockage deduction.

Mike Hallingstad of Sharon Bean said, “These might be the nicest looking beans we’ve seen all fall. Total dockage less than 2% is exceptional.” Dockage less than 5% makes the #1 bean status.Beans rated below number one are paid at a discounted rate.

Hallingstad expects pinto bean prices to continue moving higher. He says, “On November 1, we had about 50% of the pinto beans in North Dakota harvested. Normal is 95%. We had a short crop going into this year. With our weather this fall, I expect that 15-20% of this year’s crop will be abandoned and not harvested. Our pinto bean price now is 30¢ per pound. I expect 35¢ per pound soon.”

With the AdFarm yield, and the 25¢ per pound contract on the first 800 pounds of production, Lukens projects a 30¢ per pound on the remaining production will result in a break-even price. Stay tuned…

Follow the crop on Griggsdakota.blogspot.com

Marketing committee prepares plan

By admin, October 9, 2009

The AdFarm North Dakota Farm marketing committee met via conference call this morning to discuss and prepare their marketing plan for the 2009 AdFarm Pinto bean crop. Before agreeing on the plan, the group heard the following from Cooperating Farmer Fred Lukens:

  1. First fields of pinto beans on Lukens farm have been harvested. AdFarm field will be harvested next.
  2. Average yield on first fields is 1,800 lbs. per acre.
  3. Centrol crop scout predicts that AdFarm field will exceed 2,000 lbs. per acre.
  4. Pinto bean market appears to be in “harvest low” with prices at 24¢ and 25¢ per pound at Sharon Bean and Central Valley Bean respectively.
  5. U.S. pinto bean planted acres are down 5% this year, carryover crop is small, and an “average” U.S. crop is predicted.
  6. Mexico’s pinto bean crop has been hurt by drought and will be short.
  7. Experienced pinto bean market watchers believe that market has upside potential to 30¢ or higher after January 1, 2010.
  8. 800 lbs. per acre of the AdFarm crop was contracted @ 25¢ back in February 2009 with Sharon Bean.
  9. Central Valley Bean is paying freight from Aneta to Buxton, ND (approximately 60 miles). Sharon Bean (10 miles from Aneta) is not paying freight.
  10. Both Central Valley Bean and Sharon Bean offer free storage of pinto beans as follows: Central Valley Bean to February 1 and Sharon Bean to March 1.
  11. At a yield of 1,800 lbs. and a price of 25¢ per pound, the AdFarm crop should earn a profit of approximately $50 per acre. (The 2008 AdFarm crop was a record $74 per acre net profit.)

A good time to roll the dice

The group agreed on the following plan:

  1. Deliver the 800-pound per acre-contracted portion of the crop to Sharon Bean.
  2. Deliver the balance of the crop to a combination of Sharon Bean and Central Valley Bean as logistics dictate.
  3. Watch the post-harvest price trends with the intention of selling the balance of AdFarm pinto beans early 2010 for a price at 30¢ or higher.
  4. Conduct a follow-up marketing committee call at an appropriate time.

As Marketing committee member Jason Laqua summarized the plan: “Seems like a good time to roll the dice.”

Rain and cold weather have delayed the AdFarm pinto bean harvest. With current weather forecasts, Lukens expects harvest to resume the week of October 19.

Follow the crop at: GriggsDakota.blogspot.com