Thursday January 16 Ag News

Weak 2014 Start for Rural Mainstreet Economy: Farmland Price Index Lowest Since 2009

Growth for the Rural Mainstreet economy plummeted, according to the January survey of bank CEOs in a 10-state area.   

Overall:  The Rural Mainstreet Index (RMI), which ranges between 0 and 100, with 50.0 representing growth neutral, fell to 50.8 from December’s much healthier to 56.1.

“The overall index for the Rural Mainstreet Economy continues to indicate that the areas of the nation highly dependent on agriculture and energy continue to expand at a positive but slower pace.  Over the past year, corn, soybean and wheat prices have declined by 41 percent, 10 percent and 16 percent, respectively. Weaker farm prices are clearly negatively influencing the rural economy.  Additionally, almost 80 percent of bank CEOs expect the EPA’s cut in ethanol blending level to negatively affect the Rural Mainstreet economy,” said Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University.

Nebraska: After moving below growth neutral in January of last year, Nebraska’s Rural Mainstreet Index has been above growth neutral for 12 straight months. The January RMI slipped to 51.2 from 54.4 in December. The farmland-price index for January dipped to 44.4 from 48.0 in December. Nebraska’s new-hiring index increased to 54.1 from 50.1 in December.

Iowa: The January RMI for Iowa declined to 50.8 from December’s 55.3. The farmland-price index for January sank to 38.1 from December’s 52.3. Iowa’s new-hiring index for January sank to 49.1 from December’s 53.9.

Farming and ranching: The farmland and ranchland-price index plunged to 43.8, its lowest level since October 2009, and was down from December’s 47.0. “This is the second straight month that the farmland and ranchland-price index has moved below growth neutral. As agriculture commodity prices have moved lower, so have farmland prices. On the other side of the economic coin, ranchers and livestock producers are experiencing record prices and a very healthy economic outlook,” said Goss.

Farm equipment sales remained below growth neutral for the seventh straight month. The January index sank to a weak 41.0, the lowest reading since October 2009, and down from December’s 44.3. “Over the past year, commodity prices for all farm products have declined by roughly 8 percent. This has significantly reduced farmers’ willingness to undertake major agriculture equipment purchases,” said Goss.

Banking: The loan-volume index declined to 57.8 from 66.7 in December. The checking-deposit index climbed to 68.2 from December’s 66.0, while the index for certificates of deposit and other savings instruments increased to 41.6 from December’s frail 37.2. 

This month bankers were also asked when the Federal Reserve (Fed) should end its $85 billion monthly bond-buying program. Almost one of six bankers think the program should be ended by the middle of 2014, or well ahead of the Fed’s recently announced schedule. Almost one-half of the bankers, or 47.7 percent, recommend that the Fed adjust the monthly bond-buying program as incoming economic data dictate.       

Hiring: Rural Mainstreet businesses continue to hire. The January hiring index declined to a still solid 53.8 from 56.9 in December. “Businesses in rural areas of the region continue to add jobs. In fact, the region is now only slightly below the level achieved shortly before the national recession began in December 2007,” said Goss.

We asked bank CEOs their recommendation for extending long-term unemployment benefits.  The bankers were less than enthusiastic with 62.5 percent indicating that they should not be extended.  For bankers endorsing the extension, 29.7 indicated that any benefit expansion should be matched with cuts elsewhere in the budget. Only 7.8 percent recommended extending with no conditions.

Confidence: The confidence index, which reflects expectations for the economy six months out, rose to a still weak 49.2 from December’s 47.0. “Despite the recent Congressional agreements on budget items, the lack of a farm bill and lower agriculture commodity prices restrained economic confidence,” said Goss

It is not just corn prices but also available supply that concerns bankers. David Callies, CEO of Miner County Bank in Howard, S.D., said, “There is major concern for the coming year on ag cash flow because of low corn prices and high corn inventory.”

Home and retail sales: The January home-sales index fell below growth neutral to 49.3 from December’s 53.1 and November’s even stronger 56.2. The January retail-sales index sank to a fragile 46.2 from December’s much healthier 54.7. “Higher mortgage rates and lower agriculture commodity prices cooled rural housing and retail sales strength significantly,” said Goss. 

Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.

This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Iowa Soybean Association’s On-Farm Network® research, results shared Feb. 19-20

Midwest farmers are focused on strengthening yields, improving techniques and enhancing soil health and water quality. On Feb. 19-20, they’ll receive information gathered from hundreds of on-farm research trials during the Iowa Soybean Association’s annual (ISA) On-Farm Network® conference in Ames.

The conference, titled “Advancing Agricultural Performance and Environmental Stewardship…at the field, farm and beyond,” will be held on the Iowa State University campus, with a Vision & Feedback Forum held at the Gateway Hotel & Conference Center on Feb. 19 and educational sessions at the Scheman Building on Feb. 20.

Iowa Secretary of Agriculture Bill Northey will address attendees on Feb. 20, detailing progress of the Iowa Nutrient Reduction Strategy. Several On-Farm Network trials focus on techniques outlined in the strategy. Other session topics include:
·         Nutrient management
·         Fungicides
·         Resistant weed control
·         Cover crops
·         Soil-applied insecticides
·         New technology and precision ag tools
·         Unmanned aerial systems

“This is the one conference I go to that will provide in-depth information…that is current and unfiltered…The ISA On-Farm Network is the only place where, if you have interest in a research topic, you can join the team and become part of the research group,” said Mark Lage, a Sheffield-area farmer who’s involved with the program. “I have found the On-Farm Network research team to be very willing to listen to what is important to me on my farm.”

Registration is open to the public and available online at www.isafarmnet.com. Early-bird registration is $75 through Feb. 6. After that, the cost is $100. Online registration closes Feb. 14, but walk-ins will be welcomed. Registration fees are waived for 2013 On-Farm Network program participants. The student fee is $35. Continuing Education Units for certified crop advisors will be available for all conference sessions.



Business Education for Farm Women Offered by ISU Extension and Outreach

Farm women with a passion for being involved in the business and wanting to learn how to manage farm operation risk have several educational opportunities available to them. Iowa State University Extension and Outreach offers classes designed to empower women to be better business partners and owners. Farm women will learn how to build networks, and manage and organize critical information. Several different types of classes are being offered across the state during the coming year.

Annie's Project course
The traditional Annie’s Project course consists of six, three-hour class sessions that include presentations and hands-on activities with women agriculture professionals. Discussions on topics of importance to farm families, plus available resources to help achieve success are also part of each class.

“The Annie’s Project experience is one that empowers and improves the lives of farm women,” said Marsha Laux, Iowa State University Extension and Outreach value added agriculture program and statewide Annie’s Project coordinator. “The experiences, resources and support network translate into increased confidence and informed decision-making.”

Annie’s Project helps farm women learn about farm management skills in a comfortable setting.

2014 Annie’s Project course locations and start dates
    Feb. 3, Gilbert High School, 312 Gretten Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    Feb. 4, Rockwell City, Calhoun County Extension Office, 521 4th Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    Feb. 6, Greenfield City Hall Meeting Room, 202 S 1st Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    Feb. 13, Dyersville, James Kennedy Public Library, 320 1st Ave. East. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    March 6, Denison, Crawford County Extension Office, 35 S. Main Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    March 18, Cherokee County Extension Office, 209 Centennial Drive. Light meal at 5:30 p.m.; Class 6 to 9 p.m.

Managing for Today and Tomorrow
Another course offered by the Annie’s Project education team is Managing for Today and Tomorrow. This course focuses on the management processes and decisions needed to make successful farm transitions.

The program includes hands-on activities, interaction with local professionals and up-to-date resources. Participants of all ages and experience level will practice tasks to increase confidence in setting goals, nurturing effective family conversations and defining the farm legacy. The five-session program includes a 298 page workbook.

2014 Managing for Today and Tomorrow locations and start dates
    Jan. 28, Oskaloosa, Mahaska County Extension Office, 212 North I Street. Light meal at 5:30 p.m.; Class 6 to 9 p.m.
    Feb. 4, Monticello, Jones County Extension Office, 800 N. Maple St. Ste 2. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    Feb. 4, Webster City, Hamilton County Extension Office, 311 Bank Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    Feb. 6, Burlington, SCC River Park Place, 610 N. 4th Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    March 4, Osage, Mitchell County Extension Office, 315 Main Street. Light meal at 5:45 p.m.; Class 6 to 9 p.m.
    March 13, Van Horne, Van Horne Community Center, 508 1st Ave. Light meal at 5:45 p.m.; Class 6 to 9 p.m.

Iowa State University Extension and Outreach partners with the following statewide sponsors to offer Annie’s Project, Managing for Today and Tomorrow, and other farm management courses designed for women – Farm Credit Services of America, Beginning Farmer and Rancher Development Program of the National Institute of Food and Agriculture, USDA, Grant # 2011-49400-30584, the USDA Risk Management Agency, and Farm Credit National Contributions.

More information on these and other courses, along with online or mail in registration instructions, are available at: http://www.aep.iastate.edu/annie. For more information, contact Marsha Laux at 641-919-7016, mlaux@iastate.edu; or a county Extension and Outreach office. 



High Oleic Soybeans Could Provide Long-Term Profitability

Whether it’s college basketball or soybean yields, state pride runs deep. But farmers from across the nation are growing more and more excited about high oleic soybean varieties, which have the potential to increase long-term on-farm profitability for all U.S. soybean farmers.

North Dakota farmer Jared Hagert says high oleic soybeans could make a significant impact throughout his state and across the country by increasing demand for all U.S. soybean oil.

“Farmers in states that aren’t growing high oleic soybeans still need to know that our customers want the high oleic oil, but, right now, they are using competing oils,” says Hagert, a soy checkoff farmer-leader from Emerado. “We need to preserve and expand our food oil demand, and high oleic soybeans are an opportunity to do that and earn back some of a lost market.”

The soybean industry has set a goal for farmers to plant 18 million acres of high oleic soybeans by 2023. A recent analysis from the soybean-industry board QUALISOY reports that if that goal is met, each U.S. soybean farmer could gain 66 cents per bushel, or a total increase of $3.8 billion each year for all soybean farmers. That amount is over the price each farmer would receive if the market does not adopt high oleic soybeans and food demand for soybean oil continues to decrease.

“High oleic will only add to our overall profitability,” says Hagert. “Regardless of whether or not I can grow high oleic on my own farm, the demand for the oil high oleic soybeans produce helps increase the value of all soybean oil, and that means increased profits for U.S. soybean farmers.”

A broader introduction of high oleic soybean varieties could impact every U.S. soybean farmer, regardless of whether they grow these soybeans on their farms.

“Customers are looking for a widely adapted soybean oil that works well in their applications,” says Hagert. “As an industry, we can offer them a solution with high oleic.”



US Lawmakers: Delay COOL Until WTO Rules on Trade Dispute

U.S. lawmakers urged the U.S. Department of Agriculture to hold off on a contested U.S. meat-labeling rule until the World Trade Organization rules on a trade dispute between the U.S., Canada and Mexico.

A delay would give Canadian livestock producers a temporary reprieve from the controversial changes.

A brief section tucked into a spending bill passed by the U.S. House of Representatives Wednesday said the U.S. economy could suffer a $2 billion hit if Canada and Mexico make good on their threats to retaliate in a dispute over the country-of-origin labeling, or COOL, rule. The bill recommended that the Agriculture Department delay the rule's implementation until the WTO rules on the matter.

An official of the Canadian Cattlemen's Association, which represents Canadian meat producers, said the recommendation on its own "doesn't mean anything" as it isn't binding on the USDA.

"We would hope they choose" to delay the rule, John Masswohl, director of government and international relations for the lobby group, said in an email.

But "unless USDA advises differently, it [the rule] is being enforced and U.S. cattle buyers have to comply," Mr. Masswohl added.

A spokeswomen for the Agriculture Department wasn't immediately available to comment.

The rule -- an amended version of one that the World Trade Organization in 2012 found to be discriminatory against livestock from Canada and Mexico -- came into effect last November.

Canadian cattle and pork producers estimate that COOL has cost them about $1 billion a year since mandatory labeling requirements appeared in the U.S. Farm Bill in 2008. They say the amended version is even more onerous, as it requires meat sold in the U.S. to be labeled with the country where the animal was born, raised and slaughtered.

Canada and Mexico took their fight against the amended rule to the WTO again, and last September, the trade body established a compliance panel that is expected to issue its finding later this year.

According to explanatory notes in the $1.012 trillion U.S. spending bill, if Canada and Mexico won the WTO fight, the U.S. "will suffer the economic impact of approximately $2 billion in retaliation actions affecting agriculture and non-agriculture jobs and industries across the U.S."

"It is strongly recommended that USDA not force increased costs on industry and consumers and that the Department delay implementation and enforcement of the final rule until the WTO has completed all decisions," the passage said.

The Agriculture Department isn't compelled to follow the recommendation, according to Brian Rell, a spokesman for Rep. Robert Aderholt, a Republican from Alabama who chairs the agriculture panel of the House Appropriations Committee. But he said the language on COOL in the bill was "very strongly worded."

"The people that will feel the brunt of a ham-handed approach to COOL will be the average wage-earner," Mr. Rell said.

He wouldn't comment on what would happen if the Agriculture Department refused to accept the recommendation.

Canadian Agriculture Minister Gerry Ritz said Ottawa "welcomes the increasing number of American legislators who recognize the damaging effects of COOL to the North American economy." But in an emailed statement, Mr. Ritz called on Washington to fix COOL "once and for all" through the coming Farm Bill, and renewed the threat of retaliation "to achieve a fair resolution."

Ottawa has published a list of U.S. products it may target for punitive taxes, including meat, potatoes, fruit, cheese and chocolate, but has said it would withhold action until it secures a WTO ruling in Canada's favor.

Canada was the fifth-largest beef and cattle exporter in the world in 2012, and some 85% of its beef trade was with the U.S., according to data from the Canadian Cattlemen's Association.



NCGA Thanks Growers, Encourages More EPA Responses

The National Corn Growers Association today thanked the thousands of corn farmers and their allies around the country who have submitted comments urging the U.S. Environmental Protection Agency to retract its proposed 10 percent cut in the amount of corn ethanol in the 2014 Renewable Fuel Standard.

"We've seen a terrific grassroots response on behalf of our growers and our state affiliates, who have pulled out all the stops to make sure the farmer voice is heard loud and clear," said NCGA President Martin Barbre, an Illinois corn grower. As the deadline approaches, we urge those who have not yet spoken out, to do so immediately."

Barbre cited, in particular, a deceptive new "robocall" campaign by the American Petroleum Institute that left pre-recorded messages on voicemails across the country, even on farmers' phones.

"Seeing how great our response has been, it's not surprising Big Oil is feeling the heat," he said. "But if they think that harassing farming families with impersonal dinnertime calls is a smart tactic, we're happy to see them waste their money."

In addition to commenting to the EPA, farmers have been calling the White House and Congress by the thousands, Barbre said, noting that the decision to roll back the use of domestic, renewable ethanol appears to be primarily a political decision.

"There's no reason to cut ethanol and create the potential for economic havoc in the heartland when we've got an abundance of corn," Barbre said. "Farmers and consumers should not pay the price for the oil industry's reluctance to move forward and embrace a cleaner, smarter fuel future."

For more information and to send comments to the EPA, visit www.ncga.com/rfs.



Big Wins on Waterways Funding, Ag Research, Other Soybean Farmer Priorities in Appropriations Bill

The American Soybean Association welcomed action by the House this week to advance the FY2014 Omnibus Appropriations Bill. The bill, which the Senate expects to vote on Friday, combines all 12 appropriations bills for various spending categories—including Agriculture, Energy & Water, and other areas that impact soybean farmers—into one measure, and allocates funding for programs within each. Several of these programs represent significant policy priorities for soybean farmers, including those addressing waterways infrastructure, agricultural research, food aid and market reports.

The bill’s Energy & Water section includes provisions that will significantly increase funding for waterways components.  These provisions are strongly supported by ASA and have been priorities for the Water Resources Development Act (WRDA), the authorization bill that is currently in conference committee. Under the bill, the U.S. Army Corps of Engineers Construction General Account receives $1.6 billion and revises the FY14 cost-sharing formula for the Olmsted Lock & dam project to 75 percent General Funds and 25% percent from the Inland Waterways Trust Fund (IWTF).  Currently the cost-share is split evenly and has resulted in the Olmsted project consuming nearly all of the IWTF dollars.  The revised cost share will free up $81.5 million for other projects that have been delayed because of Olmsted’s cost overruns.

Another victory for ASA comes in the form of a significant increase in spending for port and navigation channel improvements, funded out of the Harbor Maintenance Trust Fund (HMTF).  The bill provides $1 billion, an increase of $200-$300 million above HMTF funding levels in previous years,  that go to port and navigation channel maintenance and dredging. The HMTF collects approximately $1.6 billion annually and in past years only about half has been provided for actual harbor maintenance, with the rest diverted to general government purposes. ASA has consistently advocated to free up money from the IWTF and increase the amounts from the HMTF that go toward port maintenance and dredging.

Within the bill’s Agriculture section, ASA also applauded the allocation of $316.4 million for the Agriculture and Food Research Initiative (AFRI), which is the nation’s only agriculture-oriented competitive grants program, and the funding of which has been a priority for soybean farmers since its inception.

Additionally in the Agriculture section, the nation’s two critical foreign food aid programs received funding. The Food for Peace Program (PL 480) was funded through the bill at $1.466 billion, while the McGovern –Dole International Food for Education and Child Nutrition Program received funding at $185 million. Both programs nations in need with assistance in the form of American-grown agricultural commodities, including in many cases, soybean meal and soy flour.

Also, the bill’s Agriculture section provided $161.2 million for the National Agricultural Statistics Service (NASS) and directs NASS to resume previously-suspended reports and begin compilation of several Current Industrial Reports formerly conducted by the U.S. Census Bureau.  This includes the “Fats and Oils: Oilseed Crushings (M311J)” and “Fats and Oils: Production, Consumption, and Stocks (M311K)” reports. In 2013, ASA led efforts to provide adequate funding to NASS to resume the reports.



House Passes Omnibus Spending Measure
(from NAWG newsletter)

The House passed a $1.1 trillion omnibus appropriations bill on Wednesday, on a 359-67 vote, that would fund the federal government for the rest of the 2014 fiscal year. The bill, introduced by House Appropriations Chair Hal Rogers (R-Ky.) and Senator Barbara Mikulski (D-Md.), establishes discretionary spending at $1.012 trillion as well as an additional $98 billion for defense and disaster relief. The Senate is currently debating the measure, which includes all 12 of the annual appropriations bills and must be passed before Sunday to avoid a government shutdown. This bill also meets the spending cap set by the December budget deal negotiated by Congressman Paul Ryan (R-Wis.) and Senator Patty Murray (D-Wash.). The Omnibus bill provides $20.9 billion in discretionary funding for agriculture programs which is $350 million above the fiscal year 2013 enacted level. 

The bill provides $2.6 billion for agriculture research programs, including the Agricultural Research Service and the National Institute of Food and Agriculture. This includes $316 million for the Agriculture and Food Research Initiative, a competitive agricultural research grant program supporting research to help stop and mitigate devastating crop diseases and improve food safety and water quality, placing priority on drought, invasive species, and herbicide resistance issues. It also provides $826 million for the Natural Resources Conservation Service to help farmers, ranchers, and private forest landowners conserve and protect their land.

WRRDA Negotiations Continue in 2014
The Water Resources Reform and Development Act (WRRDA)—which has been passed by both the House and Senate and went to conference committee late last year to reconcile the differences between the two chambers’ bills—continues to be negotiated as the New Year begins. Although the goal of completing an agreement by the end of 2013 was not met, members from both chambers on both sides of the aisle have expressed confidence that they will get the bill passed soon. WRRDA seeks to increase funding for waterway development projects, such as deepening waterways and lock and dam repair and upgrades. NAWG supports the passage of the WRRDA bill as it funds development for waterways such as the Columbia River system in the Pacific Northwest, where wheat is shipped to port before being exported abroad.



New Regulations, If Adopted, Would Raise Prices on Healthy Food, Think-Tank Says
Four U.S. lawmakers and 200 organizations, many with a financial stake in the outcome, today delivered a letter to President Obama demanding new federal labeling regulations on food products with genetically-modified ingredients.

To follow is a statement in response by New York City-based Jeff Stier, director of the National Center for Public Policy Research's Risk Analysis Division:
-    Similar measures have been defeated directly by voters in crunchy states like California and Washington for good reason.
-    Mandatory labeling of GM foods fails every justification for requiring them: scientific, economic, legal, and most of all, common sense.
-    Genetically modified foods, already consumed widely by American consumers, haven't made anyone sick. Further, requiring labels would add all sorts of expenses that will make healthy foods more expensive.
-    Organic food companies, or any company, for that matter, are welcome to label their products as "GM free," and many do. But mandatory labeling of safe products represents a classic case of rent-seeking; this is an effort to assert political influence at the expense of consumers and responsible farmers for the sole benefit of those seeking the labels.
-    If consumers wish to purchase GM-free foods, they can buy products labeled as such. Consumers already do have a right to know.

Numerous liberal organizations signed the letter, including Greenpeace, the Center for Biological Diversity, the Sierra Club, Friends of the Earth U.S., the Consumer Federation of America, Consumers Union and the Environmental Working Group. Free-market and middle-of-the road groups do not appear to be represented.

Members of Congress participating in the demand for new regulations were U.S. Rep. Peter DeFazio (D-OR), U.S. Rep. Rosa DeLauro (D-CT), U.S. Rep. Ann McLane Kuster (D-NH) and U.S. Rep. Chellie Pingree (D-ME).



Panama Canal Authority Says Expansion to Remain on Track

The Panama Canal Authority (PCA) and Grupo Unidos po el Canal (GUPC), the design-construction consortium responsible for the bulk of the Panama Canal expansion, remain at odds this week, with the consortium looking to collect additional funds for what it says are cost overruns on the project.

Should the dispute lead to the contractor halting work, as it has threatened, PCA said it would be protected and has the funds and financing to continue the work on its own and ensure the project is completed – and that mechanisms and guarantees in the contract allow it to do so. The two parties could also end up before a dispute board and then in arbitration should an agreement on the cost differences not be reached.

While considerable work remains, at the end of 2013 the entire Panama Canal expansion project was 72 percent complete, with design and construction of the third set of locks being 66 percent complete, according to the Canal expansion website, micanaldepanama.com/expansion.

PCA said regardless of how the dispute turns out, it does not anticipate delays. That would mean the Canal would be completed by mid-2015, followed by a series of tests and finally opening to traffic in the fourth quarter of 2015.

The PCA reached out to the U.S. Grains Council about the dispute over the past two weeks, and the Council will continue monitoring the situation. PCA noted that additional information can be found at micanaldepanama.com/expansion/faq.

The project will create a new lane of traffic along the Canal thanks to the third set of locks, which will double capacity and allow Post-Panamax vessels to transit through the Canal.

The Panama Canal has experienced a strong start to the grain shipping season, with dry bulkers registering record grain cargoes during the first two months of the current fiscal year. For all cargo, levels recorded in October and November 2013 were the highest since 2011.



Post-weaning nutrition, crucial for a healthy rumen

It’s no secret that getting calves off to a great start takes consistency and the ability to offer calves the nutrients they need, when they need them most. Today’s leading colostrum replacers, milk replacers and calf starters are all equipped with the most cutting edge technologies that aim to deliver the nutrients needed for optimal weight gains and structural development. Despite all the efforts to keep calves growing and developing through the first 12 weeks, it is not uncommon for calf nutrition to slough off once calves are weaned.

Losing focus on calf nutrition post-weaning can not only slow growth rates, but can also hinder rumen development and subsequent lifetime profitability. That’s according to Dr. Dari Brown, director, livestock young animal marketing and business with Purina Animal Nutrition.

The role of the rumen in the young calf
Calves are born with a small, underdeveloped rumen compared to other stomach compartments. Rumen development is established in the first six months of life, says Dr. Brown and can be influenced by diet and nutrition, so it becomes increasingly important for calf raisers to turn their attention to rumen health and development as calves transition to a diet higher in fiber.

Rumen development – A reflection of the calf diet
While on farm, Dr. Brown often notices that some calf raisers rely on forages alone to keep calves’ rumens developing post-weaning. Forages do not provide balanced nutrition or the correct volatile fatty acid (VFA) profile, especially butyrate to promote rumen papillae development. Butyrate is believed to stimulate papillae growth in the rumen as the primary substrate for energy to the rumen wall.

A key element to a calf’s rumen development is the ingestion of grain. Grain is necessary for sufficient VFA production, which results from microbial digestion and therefore papillae growth. A recent study conducted at the Purina Animal Nutrition Center found that when calves were fed a full potential milk program for seven weeks along with free-choice grain over a 12-week period, they had well developed rumen papillae similar to a conventional milk program, which allows for more absorption of nutrients into the blood stream.[1]  Also, calves on the full potential program in the study were heavier and taller than conventionally fed calves.

Feed a diet, formulated for the developing calf
To make sure that calves’ rumens are developing to their fullest potential, Dr. Brown recommends that calf raisers transition calves to a calf grower feed, formulated to support rumen development around 12 weeks of age. When fed at the recommended level along with free-choice water and hay, Dr. Brown notes that a grower feed can provide the sufficient VFA production to develop longer and more developed rumen papillae, necessary for increased nutrient absorption.

Identifying the balance between increasing forages in the diet of the post-weaned calf and providing enough grain to meet developing rumen demands can be a challenge and varies between calf feeding programs. To help find the balance that works best for your operation, consult your nutritionist so that your calves can continue developing into healthy heifers with more profit potential.