RP94-217 No. 18 Use of Crop Futures and Options by the Nontrader

Crop producers make a number of decisions that are market related. They may be categorized as financial decisions, production decisions, or marketing decisions. All three decisions depend on what prices are likely to be at some specific time in the future. The marketing decisions is complex. This research publication discusses the number of alternatives that are available even for the producer who does not directly buy or sell futures or options contracts.

Bovine Tuberculosis in Michigan Wildlife and Livestock

Since 1994, the state of Michigan has recognized a problem with bovine tuberculosis (TB), caused by Mycobacterium bovis, in wild white-tailed deer from a 12-county area in northeastern Lower Michigan. A total of 65,000 free-ranging deer have been tested, and 340 have been found to be positive for M. bovis. The disease has been found in other wildlife species, and, in 1998, in domestic cattle, where to date 13 beef cattle and 2 dairy cattle herds have been diagnosed with bovine TB. Unfortunately, the situation is unique in that there have never been reports of self-sustaining bovine TB in a wild, free-ranging cervid population in North America. Scientists, biologists, epidemiologists, and veterinarians who have studied this situation have concluded that the most logical theory is that high deer densities and the focal concentration caused by baiting (the practice of hunting deer over feed) and feeding are the factors most likely responsible for the establishment of self-sustaining TB in free-ranging Michigan deer. Baiting and feeding have been banned since 1998 in counties where the disease has been found. In addition, the deer herd has been reduced by 50% in the endemic area with the use of unlimited antlerless permits. The measures of apparent TB prevalence have been decreased by half since 1997, providing hopeful preliminary evidence that eradication strategies are succeeding.

Avian Use of Harvested Crop Fields in North Dakota During Spring Migration

Broad-spectrum herbicide applications and improved harvesting efficiency of crops have reduced the availability of weed seeds and waste grains for game and nongame wildlife. Over the last decade, corn and soybean plantings have steadily increased in the Prairie Pothole Region (PPR) of North Dakota, while sunflower plantings have declined. The PPR is an important corridor for migratory birds, and changes in food availabilities at stopover habitats may affect how food resources are used. In early spring 2003 and 2004, we compared bird use of harvested fields of sunflower, soybeans, small grains, and corn in the PPR of North Dakota. Across both years and all crop types, we observed 20,400 birds comprising 29 species. Flocks of Lapland Longspurs (Calcarius lapponicus) and Horned Larks (Eremophila alpestris) and flocks of Red-winged Blackbirds (Agelaius phoeniceus) made up 60% and 15%, respectively, of the bird counts. We found that species richness and bird densities were higher in harvested sunflower fields and cornfields than in harvested small-grain and soybean fields, with soybean fields harboring the fewest species and lowest bird density. Blackbird densities tended to be lower in fields tilled after fall harvest than in fields not tilled. These results suggest that some granivorous bird populations in the Northern Great Plains could be positively affected by planting of row crops with postharvest vertical structure (e.g., sunflower, corn) and use of no-till land management practices.

Crop, Native Vegetation, and Biofuels: Response of White- Tailed Deer to Changing Management Priorities

The expansion of the cellulosic biofuels industry throughout the United States has broad-scale implications for wildlife management on public and private lands. Knowledge is limited on the effects of reverting agriculture to native grass, and vice versa, on size of home range and habitat use of white-tailed deer (Odocoileus virginianus). We followed 68 radio-collared female deer from 1991 through 2004 that were residents of DeSoto National Wildlife Refuge (DNWR) in eastern Nebraska, USA. The refuge was undergoing conversion of vegetation out of row-crop agriculture and into native grass, forest, and emergent aquatic vegetation. Habitat in DNWR consisted of 30% crop in 1991 but removing crops to establish native grass and wetland habitat at DNWR resulted in a 44% reduction in crops by 2004. A decrease in the amount of crops on DNWR contributed to a decline in mean size of annual home range from 400 ha in 1991 to 200 ha in 2005 but percentage of crops in home ranges increased from 21% to 29%. Mean overlap for individuals was 77% between consecutive annual home ranges across 8 years, regardless of crop availability. Conversion of crop to native habitat will not likely result in home range abandonment but may impact disease transmission by increasing rates of contact between deer social groups that occupy adjacent areas. Future research on condition indices or changes in population parameters (e.g., recruitment) could be incorporated into the study design to assess impacts of habitat conversion for biofuel production.

Livestock Protection Dogs for Deterring Deer From Cattle and Feed

Disease transmission between wildlife and livestock is a worldwide issue. Society needs better methods to prevent interspecies transmission to reduce disease risks. Producers have successfully used livestock protection dogs (LPDs) for thousands of years to reduce predation. We theorized that LPDs raised and bonded with cattle could be used to also reduce risk of bovine tuberculosis (Myobacterium bovis; TB) transmission between white-tailed deer (Odocoileus virginianus) and cattle by minimizing contact between the 2 species and use of cattle feed by deer. We evaluated 4 LPDs over 5 months, utilizing 2 data collection methods (direct observation and motion-activated video) on deer farms that supported higher densities than wild populations. Dogs were highly effective in preventing deer from using concentrated cattle feed (hay bales), likely the greatest risk factor of TB transmission on farms. Dogs also prevented deer from approaching cattle in core areas of pastures (near hay bales) and were very effective throughout pastures. Our research supports the theory that LPDs, specifically trained to remain with cattle, may be a practical tool to minimize potential for livestock to contract TB from infected deer in small-scale cattle operations. Where disease is present in deer, it may be possible to reduce the potential for disease transmission by employing LPDs.

Management of Wolf-Livestock Conflicts in Minnesota

In 1975, the gray wolf (Canis lupus) population in Minnesota was protected by the federal Endangered Species Act (USA). At that time, there were 500-750 wolves. By 2004, the population had grown to an estimated 3,020 wolves. Over time, conflicts between wolves and livestock increased. Wolf depredation control programs have been conducted by the U.S. Fish and Wildlife Service (1975-1986) and by the U.S. Department of Agriculture’s Wildlife Services program (1986 to present). In 1978, Minnesota’s wolves were reclassified from endangered to threatened which allowed authorized federal agents to lethally remove wolves that had depredated on livestock or pets. A State funded wolf compensation program was also established in 1978. Wildlife Services’ wolf damage management approach utilizes both nonlethal and lethal methods of control. Currently, wolf depredations are verified at 60-85 farms annually and 125-175 wolves are taken each year. Wolf compensation payments to livestock producers have averaged $67,111 per year during the past five years. Most livestock losses occur during spring and summer. Selective removal of depredating wolves, coupled with improvements in animal husbandry practices, has potential for reducing wolf-livestock conflicts. Minnesota’s wolf population is currently considered to be fully recovered and federal delisting is expected to occur in the near future.

Taking an Endemically Infected Bovine Tb Area Through to Livestock Clearance. A Case Study of West Taupo, New Zealand

The Pest Management Strategy for Bovine Tuberculosis (Tb) in New Zealand aims to achieve efficient freedom from Tb by 2013 and to eradicate the disease from livestock and wildlife. The West Taupo area, in the central North Island of New Zealand, was chronically infected with Tb in both domestic livestock herds (cattle and deer) and within wildlife populations (brushtail possum, ferret, feral deer and pigs). Through the development and implementation of a technically innovative management plan, this area is now approaching Tb free status. The case study / management plan reported here discusses the operational techniques and strategies that were implemented to achieve Tb clearance in the livestock herds and the possibilities of eradication from wildlife species. It particularly identifies the variations in control strategies that are required as population densities reduce and the challenges of maintaining strong effective control at low densities of some wildlife species, whilst not needing to control other species that were initially clinically diagnosed with Tb control. Use of diagnostic tools and education as an area moves through the cycle towards Tb freedom are as essential as the physical control activities. The use of intensive monitoring of both livestock and wildlife species as trend and performance indicators and the need to educate farmers, hunters and other land use groups become increasingly important.

Yield potential and resource-use efficiency of maize systems in the western U.S. Corn Belt

Maize demand for food, livestock feed, and biofuel is expected to increase substantially. The Western U.S. Corn Belt accounts for 23% of U.S. maize production, and irrigated maize accounts for 43 and 58% of maize land area and total production, respectively, in this region. The most sensitive parameters (yield potential [YP], water-limited yield potential [YP-W], yield gap between actual yield and YP, and resource-use efficiency) governing performance of maize systems in the region are lacking. A simulation model was used to quantify YP under irrigated and rainfed conditions based on weather data, soil properties, and crop management at 18 locations. In a separate study, 5-year soil water data measured in central Nebraska were used to analyze soil water recharge during the non-growing season because soil water content at sowing is a critical component of water supply available for summer crops. On-farm data, including yield, irrigation, and nitrogen (N) rate for 777 field-years, was used to quantify size of yield gaps and evaluate resource-use efficiency. Simulated average YP and YP-W were 14.4 and 8.3 Mg ha-1, respectively. Geospatial variation of YP was associated with solar radiation and temperature during post-anthesis phase while variation in water-limited yield was linked to the longitudinal variation in seasonal rainfall and evaporative demand. Analysis of soil water recharge indicates that 80% of variation in soil water content at sowing can be explained by precipitation during non-growing season and residual soil water at end of previous growing season. A linear relationship between YP-W and water supply (slope: 19.3 kg ha-1 mm-1; x-intercept: 100 mm) can be used as a benchmark to diagnose and improve farmer’s water productivity (WP; kg grain per unit of water supply). Evaluation of data from farmer’s fields provides proof-of-concept and helps identify management constraints to high levels of productivity and resource-use efficiency. On average, actual yields of irrigated maize systems were 11% below YP. WP and N-fertilizer use efficiency (NUE) were high despite application of large amounts of irrigation water and N fertilizer (14 kg grain mm-1 water supply and 71 kg grain kg-1 N fertilizer). While there is limited scope for substantial increases in actual average yields, WP and NUE can be further increased by: (1) switching surface to pivot systems, (2) using conservation instead of conventional tillage systems in soybean-maize rotations, (3) implementation of irrigation schedules based on crop water requirements, and (4) better N fertilizer management.

Variation of Environmental Regulation Stringency Among the Top Ten U.S. Hog Producing States

The U.S. hog industry, once primarily made up of small owner-operated crop-hog farms, has become dominated by large specialized operations characterized by low costs and improved technologies in livestock management. Such changes have triggered concerns over the dangers large Hog Feeding Operations (HFOs) are likely to pose to the environment. In 2007, the top ten states accounted for more than 85 percent of total U.S. hog production (Iowa (IA), North Carolina (NC), Minnesota (MN), Illinois (IL), Nebraska (NE), Indiana (IN), Missouri (MO), Oklahoma (OK), Ohio (OH), and Kansas (KS)). With such domination on production, these states are often the subject of environmental debate relating to hog production. When farmers are required to incorporate environmental measures in hog production, their costs of production increase. Metcalfe (2001) found that small HFOs have found it difficult to cope with such costs and many have exited the industry, while large operations have not been affected at the same level. Due to the variation of environmental regulations among states, other operations moved to states with lax regulations (e.g. NC prior to the late 1990s). Such regulations appear to have played a major role in shaping the structure of the hog industry.

G82-621 Sources of Livestock and Poultry Market Information (Revised July 1994)

This NebGuide provides a list of various market information sources, each followed by a brief summary of issue schedules and contents. It provides a listing of widely used and readily available market information sources that contain information which may be useful to agricultural producers, lenders and agribusiness firms when making livestock and poultry marketing decisions. Most of the available market information and statistical data comes from the U.S. Department of Agriculture (USDA). Many now require an annual subscription fee.

NF99-403 Livestock Waste Management Act (Revised March 2001)

The Livestock Waste Management Act requires all livestock operations with 300 animal units or more to be inspected by the Nebraska Department of Environmental Quality (DEQ) to determine whether livestock wastes contaminate surface or ground water. This NebFact discusses the following parts of the Livestock Waste Management Act: Act (how cited); Terms (defined); Livestock operation, exemption, livestock waste control facility, permit, restriction; Construction permit or operating permit (when required), livestock waste control facilities, classification, restrictions; Section (how construed); Cold water class A streams (designation); Permit (acknowledgment required); Livestock operation (request inspection, when, fees, department, duties); Permits (duration, modification); Permit (application and modification fees, Livestock Waste Management Cash Fund (created, use, investment, report, legislative intent); Applicant (rejection, grounds, application, information required, certification required); Postconstruction inspection requirement; Department (contracts authorized, permit application, notice required); Permit application (approval from Department of Natural Resources and Department of Environmental Quality, powers); Council (rules and regulations); and Enforcement of act (legislative intent).

EC94-852 Cash Flow Planning Form

This extension circular covers the following areas of a cash flow planning form: Beginning Cash Balance, Operating Sales (crop and hay, market livestock, livestock product, custom work); Capital Sales (breeding livestock, machinery and equipment); Personal Income (wages, interest); Operating Expenses (car/truck, chemicals, conservation, custom hire, feed purchased, fertilizers and lime, freight and trucking, gasoline, fuel and oil, insurance, labor hired, rents and leases, repairs and maintenance, seeds and plants, storage, warehousing, supplies, taxes, utilities, veterinary, breeding fees and medicine, feeder livestock); Capital Purchases (breeding livestock, machinery and equipment, family living withdrawals, personal investments, income and social security, term loan payments); Net Cash Available (operating loan borrowings, operating loan payments); and Ending Operating Loan Balance. Along with the Cash Flow Planning Form is a Projected Income Statement Form which covers Projected Business Income (operating sales, breeding livestock, estimated cash income adjustments, estimated gross revenues, estimated value of production); Project Business Expenses (cash operating, esimated operating, prepaid and supplies, cash investment in growing crops, accounts payable); Projected Net Income Summary (estimated net income from operations, estimated net business income, estimated net income after taxes, estimated earned net worth change); and a Physical Inventory Flows Worksheet.

New 2010 Crop Enterprise Budgets

The 2010 Crop Enterprise Budgets will soon be published. They will be available on the web in two places: the University of Nebraska’s “Crop Watch” website (http://cropwatch.unl.edu) in the Economics and Marketing section, and on the Agricultural Economics website at http://www.agecon.unl.edu.

HEALTH RISKS TO HUMANS AND DOMESTIC LIVESTOCK POSED BY FERAL PIGS (Sus scrofa) IN NORTH QUEENSLAND

A sample of 608 adult pigs from Cape York and adjacent islands was examined for parasites and their serum tested for livestock diseases associated with the Queensland tropics. Feral pigs from North Queensland pose a significant health threat to humans with the incidence of Spargana (the plerocercoid of Spirometra erinacei) through the consumption of undercooked pork. Meliodosis (Pseudomonas pseudomalleO. Leptospirosis (L. yar. pomona). and Brucellosis (Brucella suis) are capable of infecting humans directly during unhygienic butchering of infected carcasses. In North Queensland, the widespread intermingled distribution of feral pigs and cattle increases the potential for the transmission of Actinobacillus, Leptospirosis, and Brucellosis from feral pigs to cattle. Both Europeans and Aborigines on Cape York also raise wild-caught feral pigs for meat. It is important to realize that parasites and diseases are present in young pigs and that poor husbandry practices increase the risk of infection from several parasites, i.e., Lungworm (Metastrongylus sp.) Stomach worm (Physocephalus sexalatus. Hvostrongvlus rubidus). Thorny headed worm (Macracanthorrhynchus hirudinaceus) and Kidney worm (Stephanurus dentatus). Heavy infection of these parasites reduce growth rates and cause unthriftiness in infected ani¬mals.

DEVELOPMENTAL STATUS OF N-(3-CHLORO-4-METHYLPHENYL) ACETAMIDE AS A CANDIDATE BLACKBIRD/STARLING ROOST TOXICANT

Large winter roosts of blackbirds (Icteridae) and starlings (Sturnus vulgaris) often cause conflicts, both real and imagined, between the birds and local human popula- tions. These conflicts may range from objections to the noise and odor engendered by thousands or millions of birds, to fear of epidemic human and livestock diseases, and the possibility of economic losses from crop depredations. Many people believe the most direct way to combat these conflicts is to reduce local roosting populations by kill- ing the birds. In response to this perceived need for a roost toxicant, the U.S. Fish and Wildlife Service (FWS) developed PA-14, a surfactant which can be aerially applied to problem roosts for population reduction (Lefebvre and Seubert 1970). Successful use of this material, however, requires concurrent rainfall and low temperatures, conditions which may not occur sufficiently often to permit roost treatment at desired times or places. Because of this difficulty, and continued pressures from management person- nel and the agricultural community, the Service has continued its search for a safe, ef- fective roost toxicant usable without severe weather restrictions. One of the current candidate materials is N-(3-chloro-4-methylphenyl)acetamide (CAT, DRC-2698), a derivative of StarlicideR (DRC-1339). This compound was initially developed by S.A. Peoples of the University of California-Davis (Peoples et al. 1976). California researchers are still investigating the avicidal potential of CAT, mainly on baits and in wick perches, while FWS interest has centered thus far on its possible utility as an aerially applied roost treatment. This report is a summary of our investigations to date.