As your eyes view the green crop that promises a good harvest, you begin to wonder about combines, storage, sales, prices and all those fun things. This coming harvest will be full of action and challenges as you will see in the newsletter. We hope to answer all your questions, even with answers that you may not want to hear… sometimes reality awaits us!
In Eastern Ontario, things are going well. We moved over 500 tonnes of '98 soybeans overseas and only have one load left to go. The buckwheat went to Europe in February and we wish that we had some more. The feed market has again about doubled over last year. We ran out of local oats a long time ago and went twice to Northern Québec to replenish. We just finished the local feed wheat and have brought more in from Québec and Southern Ontario. We still have corn, barley and feed beans in storage until the new harvest.
As you wander down the road, you pay attention to the exemplary crops with the signs identifying the various seed companies. You probably ask where the organic crops are. Is that weedy field over there one of ours?
We are on a mission to correct that lack of visibility. Canadian Organic Growers (Ottawa Chapter) is investing in 200 fence signs to identify organic crops in our region. It will set an example for conventional farmers to show that organic methods do work and that there are more organic acres than they had imagined. Look for them as you drive down the road.
I will be calling many of you this summer for an appointment to post the sign. With your approval, we will highlight certified and registered transition fields that look decent from the road. This includes field crops, produce and livestock. You do not have to be a COG member, but your application for membership would be very worthwhile for you.
We are on alert! No Genetically Modified Organisms (GMOs) are tolerated in organic food. Food manufacturers in Europe are testing for GMOs. You may have purchased non-GMO seed, but what about the neighbour? Pollen drift is a fact, especially in corn, and you must maintain proper separation and segregate the grain harvested from the buffer zone. We will test your corn and soybeans shipments and send them for GMO detection tests.
Ultimately, the producer is responsible for ensuring that his/her grain is GMO-free and for other lots that he/she may contaminate. Call me if you would like information about getting your crop tested.
As the supply of organic grain increases, customers have more choice and will be more selective. Producing organic grain is one thing, but producing a quality product is another. You can expect us at Homestead Organics to harp on quality more often and be more selective when you bring in your load.
Here are some TIPS to improve your quality. Pull the volunteer corn and nightshade berries in the soybean fields. Wait till the weeds dry up after a killing frost before combining soybeans to avoid green stains. Combine soybeans in the afternoon to prevent the dew and dust from causing ground stains. Watch your combine cylinder setting to avoid crushing the soybeans and buckwheat. Swath your buckwheat to minimize shelling. Clean all equipment to prevent contamination. Aerate your crop promptly to prevent heating and sprouting. Adjust your airflow in the combine to optimize the amount of dockage (remove the chaff, but don't blow out the grain). Raise the combine head, or use a flexhead and drive diagonally across the ridges to avoid picking up dirt and stones.
I must insist that people still need to eat the day before the next harvest. Therefore, storage becomes essential. We are leasing and building more storage and offering this service to you. But that takes a lot of capital. Let's work together! Invest in storage at Homestead Organics with a 3-year term loan at 7% simple interest per annum. We can build cost-effective storage for many people versus the expensive bins that you would need for your many crops.
By storing your crop with us, as with any elevator, you are under no obligation. We will market your crop as quickly and profitably as possible for you. If you find a good market before we do, then you can either refer them to us so that we may complete the transaction or you can reclaim your volume and sell it yourself. In the latter case, you will not get exactly your grain since the storage is shared.
When we buy your product from our storage, the predicted price mentioned above is already net of 25$/tonne storage costs for the season. If you reclaim your product from our storage, then the fee is 25$/tonne storage plus $10/tonne out-handling. If we request to buy grain from your on-farm storage, then we are budgeting a 25$ premium for your storage costs. Other services like drying and cleaning are available for a fee.
Storage is fine, but where is the money? As you can imagine, revenues can only occur when the product goes to market. And we understand that you have bills to pay. Cash flow is an important consideration when planning your crop mix. But the best resource is patience and personal cash reserves to carry you beyond the harvest.
Homestead Organics will actively market or locally consume your grain crop as quickly as possible. We have a purchase order on hand for some soybeans at harvest time and are waiting for answers on buckwheat and milling wheat. We will assemble mixed lots for buyers and provide partial payments to a number of producers when a load of grain moves out.
An important resource to producers is the Advanced Crop Payment program from the Agricultural Commodity Corporation. They provide a partial cash advance, interest free, for your crops in storage. Your buyer repays the advance when the crop is sold. Call ACC at 1-800
So the crop is ready and the combine is in the yard. But not so fast!
Despite our progress, Homestead Organics is still a modest operation. Our biggest challenge is the variety in your crop rotation. We need time to plan and execute all the tasks to support that variety: receiving, elevator clean-out, grain cleaning, drying, storage, etc. PLEASE, give us a couple of days warning before you send your truck!
Secondly, we do not have a large scale, and our small wagon scale is not repaired yet. Please scale your load full before you arrive and empty on your way home, and fax us a copy of the weigh slip.
Thirdly, milling grains (wheat, rye, spelt) need to be graded before they arrive so that we may store them as food grade or feed grade. Call me for information about grading by the Canadian Grain Commission. You must courier your grain sample the day of your harvest and I can get the results in two business days.
On one hand, the worldwide market for organic food continues to grow. The press in Canada regularly carries horror stories about pesticides, hormones and antibiotics. The Europeans are up in arms about hormones in meat from the US and there is a growing refusal of GMO's.
On the other hand, organic production is increasing rapidly, catching up with demand with the obvious downward pressure on price. In Eastern Ontario, I estimate production in 1997 at around 1500 acres, 3000 in 1998 and 5000 in 1999. Contracts from food makers are slow this year as many suspect a soft market in the next 12 months.
Here are our price predictions (no promises) for the 1999 crops delivered at harvest time to our storage facilities:
As before, we are accepting field crops certified OCIA, OCPP, Garantie Bio and Demeter. North American and Asian markets for these labels are working well. However, we still have difficulty with OCIA and OCPP in Europe and this will slow down our exports to these markets. Both agencies are working hard for a solution, this should help with the 1999 crop moving to Europe.
As we announced in our last newsletter, ALL OUR MIXED FEEDS AND FEED GRAINS WILL BE CERTIFIED OCPP AS OF THE NEW HARVEST. Anyone who requires OCIA feed grains must order ahead and acquire their reserves for the year before we mix the OCIA and OCPP grain in the same bin. In any case, call me to discuss your options.
With the new harvest comes a review of our feed prices. There is a general decrease in grain prices this year and we will pass these savings along in our feed prices with a decrease of about $1 per bag across the board. While the new cereals arrive in August, we must wait until November for corn and soybeans, the major ingredients. So a price change will come into effect in late autumn.
Off with one crop, in with another! Cover crops can help reduce erosion, improve soil tilth, increase organic matter, combat weeds and break the pest cycle. We will have organic rye, buckwheat, oats, oil radish, and spelt for fall seeding. You should budget about $20 to $40 per acre for seed. The ideal planting time is normally the first two weeks in September.