“National Farmers’ marketing footprint is now regionalized into six separate areas...”

— Paul Olson

A new business structure designed to improve member service, streamline costs and improve organizational pro-ductivity through an all-com-modity marketing approach was initiated Oct. 1. National Farmers leaders introduced plan details to staff , indepen-dent contractors and members during meetings in August and September.

“National Farmers’ marketing footprint is now regionalized into six separate areas, and includes fi eld men and women from all three ma-jor marketing divisions, dairy, livestock and grain,” said Na-tional Farmers President, Paul Olson. “We’ll still have three commodity divisions, but the staff across the country will represent all our marketing

◆ Elections at Convention

Olson, Mattos,Rohr declare 2

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National Farmers Mission Statement:To provide greater opportunities through collective bargaining systems, to obtain a fair price from the marketplace for the commodities produced by member farmers and ranchers.

Animal ID

Wahlmeier and sons choose Grain Marketing Plus to capture profi ts

October/November 2007A publication of the National Farmers Organization

www.nfo.org ◆ e-mail: nfo@nfo.org ◆ 800-247-2110

In this Edition

◆

New GAO Report 3

High-fl ying organic grain prices reach parity levels

New all-commodity marketing areas established, regional leaders appointed

◆ Friendly Faces

New NationalFarmers employees 4

Continued on page 3

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programs.”New procurement regional manag-

ers were named, and Brad Rach will assume the title, Director of Procure-ment. “The goals of the organization are not changing, but by decentralizing we can go out into the areas and create customized programs that meet the specifi c needs of producers in those areas,” Rach said.

As an example, a dairy marketing program in California looks a lot diff erent than one in New York, and a grain program in Kansas is diff erent than one in Ohio.

Rach noted that in today’s agri-culture, competition is intensifying, while slimmer margins and shorten-ing program life cycles place greater demand on marketers. In turn, that has

driven the need for the new National Farmers structure. “Our vision should correspond with the goals we expect to achieve,” Rach said.

Advisory and budget committees are in the process of being established

in the regions. “We’re empowering mem-bers in those regions and we’re decentraliz-ing the organization,” said Paul. The world is changing around us, and we’re going to adapt and succeed.

Area offi ces will now be referred to as National Farmers regional offi ces, rather than as specifi c dairy offi ces. “I want to emphasize that the home offi ce in Ames, Iowa, is very important, and will provide the business and communications support infrastructure to the organization,” Paul said.

Wahlmeier’s enjoyed a safe 2007 harvest.Wahlmeier’s enjoyed a safe 2007 harvest.

to worry about. My job is to produce it, harvest it and get it to the market.”

They rely on National Farmers for corn and milo sales, and any wheat not sold for seed is handled through Grain

Marketing Plus, too. The Kan-sas grower is a proponent of the forward contract-ing afforded to the producer through National Farmers.

“It evens things out,” he said. “In a normal year, what you forward contract is priced a lot higher than at harvest. It’s

been a good tool.“Last year there was a rise in prices,

but even when there is, you’ve gotta keep doing what you’re doing.”

Wahlmeier shared a recommendation for producers who haven’t opted for for-ward contracting through National Farmers Grain Marketing Plus.

Kansas producer Carl Wahlmeier likes to experiment.Whether it’s with grassland in the USDA’s Environmental Quality Incentives Program, or rotating corn and milo in wheat stubble and changing those rotations ac-cording to soil and moisture conditions. So he is constant-ly improving his ground and grain produc-tion.

But when it comes to marketing, Wahlmeier’s sticking with Grain Market-ing Plus by National Farmers Maximum-Marketing. He has since the 1970s.

“We forward contract a good percent-age of our corn and milo through Grain Marketing Plus,” Wahlmeier said. “I started back in the 70s, selling through National Farmers.

“I’ve been totally satisfi ed with our end results. It’s just something I don’t have Continued on page 5

NForganics, the organic grain marketing program of National Farmers, served as host of the annual OFARM fall board meeting in Red-wood Falls, Minn., Sept. 7. And the price review news for attendees of the Organic Farmers Agency for Relation-ship Marketing conference was simply outstanding.

“A farm-pricing milestone that producers haven’t seen in nearly 60 years was reached in organic grains this summer,” said Tim Ennis, an organic grain marketing representa-tive for NForganics. Not since 1948, when grain growers enjoyed healthy prices for their corn, wheat, oats and soybeans, has a level of parity been achieved.

And because of a number of today’s factors, including growing organic market demand for the past several years and increasing numbers of producers using price negotiation through bargaining agents, today’s producers have a reasonable oppor-tunity to expect prices to remain at decade highs, near-term.

“We are pretty excited about even

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MaximumMarketing Regions

Northeast, Dave KasenoGreat Lakes Gulf, Gary SchmiesingMidwest, Ron StatzUpper Midwest, Terry NelsonWest, Harold WalkerPacifi c, Dave Inman

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Dave Gary Ron Terry Harold DaveKaseno Schmiesing Statz Nelson Walker Inman

After much thought, and after a long dis-cussion with my fam-ily, I have decided to seek another term..

Summer and fall at National Farmers have brought innovation and vision to your farm commodity marketing organization. National Farmers leaders have been traveling throughout the country explaining and helping local areas establish a new business structure. It’s a new framework for National Farmers, emphasizing expansion, and building on the hard work and success of the procurement teams you’ve heard so much about in recent years. (See page 1 for story.)

With the success and growth National Farmers has experienced with its program-oriented procurement teams, the move to a region-based, member and commodity procurement-focused, system just makes sense. It’s a step that is bound to benefi t members as our group marketing pools grow in the commodity areas, and, in turn, positively impact general commodity prices.

I would like to take this opportunity to thank everyone, every member of the Na-tional Farmers Organization staff and membership who attended the regional meetings in so many places in the U.S. during August and September. Your attendance and input have been very important. I like to refer to this plan as a work in progress. And it’s a very real plan, and very real progress is happening with the staff and board currently hard at work on regional budgets. Thank you for capturing the vision for this new venture.

Along with our new structure, your new organization, the new National Farmers, is pro-moting National Farmers MaximumMarketing gate signs. See the advertisement on page 7.

On another subject, many members have approached me about my plans for the upcoming election for the organization’s presidency at Convention 2008.

After much thought, and after a long discussion with my family, I have decided to seek another term. I know all too well the burden this position has placed on my family, and especially on my wife, Judy, as she shoulders much of the responsibility of keeping our farm going. There are days I don’t know how she honestly does it, but she does it well. She just smiles, and with that twinkle in her eye, promises to get even with me someday.

This position requires understanding of and dedication to National Farmers’ com-modity program strategies, knowledge of the agricultural climate today, a heart for rural America and a willingness to work very hard for and listen to you, the members. I am willing to continue working for you, America’s best.

As for my work during the last eight years, I’ve been truly blessed with a great team. Thank you to all of our members and staff . Thank you for your support during this time, and for your future support. I would be honored to keep serving you.

In this world, we only get to go around once, so we must always off er our best, and remain focused on the big picture. In our case, higher prices for the commodities you produce. I look forward to seeing you in Milwaukee, Wis., at Convention 2008, if not before.

President’sMessagePresident — Paul Olson, WI Vice President — Ron Mattos, CATreasurer — Michael Miller, IASecretary — Dave Reed, IABoard Members Ron Mattos – Hanford, CAFrank Endres – Corning, CADavid Lusk – Arbon, IDRon Schultz – Stewardson, ILJerry Maxheimer – Mt. Pulaski, ILBernard Rudecki – Walkerton, INGilbert Kleaving – Tell City, INNorbert Hackman – Fort Atkinson, IAPaul Riniker – Greeley, IAHarold Walker – Mayetta, KSCarl Wahlmeier – Jennings, KSAubin Mattingly – Rineyville, KYGlen Field – Auburn, MEWayne Prichard – Burlington, MIMark Rohr – Bluffton, MNRichard Shilling – Fort Ripley, MNJoseph Neaton – Watertown, MNKen Schlottach – Owensville, MOMark Manford – Holden, MOWayne Forder – Highwood, MTNorman Stokebrand – DeWitt, NECarroll Wade – Jasper, NYDaniel Casler – Little Falls, NYCalvin Shockman – La Moure, NDWilliam Goettemoeller – Versailles, OHChester Stoll – Marshallville, OHDennis Hadley – Silverton, ORKaleb Wolfe – Centre Hall, PAJames Brown – Dell Rapids, SDArlen Hanson – Columbia, SDRaymond Tardif – St. Albans, VTGarry Crosby – Shell Lake, WIDonald Hamm – Fredonia, WIStanley LaCrosse – Kewaunee, WI

THE REPORTER

NFO Offi cers and Board of Directors

The Voice of family farmers and ranchers

The NFO Reporter is published six times a year by National FarmersOrganization, 528 Billy Sunday RoadAmes, Iowa 50010-2000(515)292-2000 e-mail: nfo@nfo.orgInternet: http://nfo.orgNon-profi t third class postage paid at Princeton, Minn. Postmaster: Send address changes, along with mailing labels, to: The NFO Reporter, 528 Billy Sunday Road, Ames, Iowa 50010-2000.

Subscription price for members, $1 per year; for non-members, $5 per year.

National Farmers est. 1955Collective Bargaining

for Agriculture

2

By Paul Olson

Mattos, acting vice president, declares candidacy for V.P.

By Mark Rohr, National Director

At our next national convention in Mil-waukee, we will have elections for president and vice president of NFO.

I am announcing that I’m running for national vice president. I am a second genera-tion National Farmers member. My parents joined the organization in August, 1963. My dad, Norbert, hauled cattle and hogs to NFO collection points for about 30 years. My mother, Vivian, was involved with publicity at the county and district level. I was a member in the 1980’s when I farmed and raised sheep. We developed a lamb and wool program, and in 1988, we ran about 1000 lambs through the Fergus Falls collection point.

In the fall of 1988, I started college. I graduated in just less than four years with a major in philosophy and minor in classical languages. In 1995, I started milking cows,

and in 2000, I became a national director. In 2005, I was elected to the executive board for National Farmers.

In the past few years, NFO has paid off a lot of debt. We need to continue to pay off our debt, although our debt is not that large.

National Farmers needs to remain in all commodities, dairy, grain, and livestock, but we also need to fi nd a way to make grain and livestock departments more profi table. In the past few years, National Farmers has gotten into some new programs. Examples are antibiotic-free hogs, fi nancial planning, and health insurance to name a few. This is fi ne if we can provide a service to our members or develop a niche market, but we have to realize that we have a limited budget to seek out new opportunities.

I would like your support and vote in Milwaukee in January. I hope that we will have a chance to visit before then.

by Ronald J. Mattos

My history of being a third genera-tion farmer in the state of California: Past dairyman, now presently raising grains, alfalfa and cotton. This operation consists of 535 acres of irrigated land which is owned and rented.

I became a member of the National Farmers Organization in 1967. Since 1969 I have held offi ces at the county and state level. Fifteen years employed on staff from 1969 through 1984. My duties included working fi eld staff, Marketing Area Chief, and State Grain Director.

In 1988, I was serving as an alter-nate director, became national direc-tor due to the death of our California National Director. I have held that offi ce of National Director to the present time, which includes Executive Board for eleven years, President Pro Tem for twelve years and was elected Acting National Vice President since March of 2007.

This has all been made possible by my wife, Sandy, who has been supportive in believing in me and the National Farm-ers Organization.

The experience that I have attained working with the National Farmers Or-ganization at many levels, gives me the opportunity to use this knowledge.

Things are changing in agriculture at a very rapid pace through consolidations, globalizations, and many other factors that affect the American farmer. There is still the unchanging factor that through all these changes the one and undeni-able fact is that farmers must price their commodities at a fair and just price, and that will be an ongoing challenge for the National Farmers Organization members as well as future members.

Therefore, I am submitting my name as a candidate for the position of National Vice President of the National Farmers Organization.

Rohr, Executive Board member seeks V.P. seat

Indiana’s Kleaving named new Acting Grain Director

Gilbert Kleaving, Tell City, Ind., was named Acting Grain Director Oct. 1. The Executive Board member and lifetime member produces corn, soybeans, hogs and cattle.

“I look forward to working with the professionals that market our mem-bers’ grain,” Kleaving said.

“It’s very important to protect the well-being of our member-farmers and deliver superior marketing programs like Grain Marketing Plus, that assists them in leveraging the best returns possible for the grain they work so hard to produce.”

“Producers think it is amazing…we’re selling a lot of wheat at out-standing prices.”

— Tim Ennis

in this prosperity.”OFARM is known for its target pricing sched-

ules, and although it is not backing down from its organic grain price targets, the organization is sensi-tive to what dairy producers now face.

In a collaborative eff ort to help organic produc-ers, OFARM and Organic Valley have established a new organic pricing committee. Organic farmers from dairy, grains, poultry and livestock are sitting down together to address their common interests.

An example of how producers can benefi t is a joint eff ort to create an organic grain pool. Some

of the grain would be pledged from existing National Farm-ers/Organic Valley producers. But, the pool would also be open to non-members to pledge a percentage of their organic grains as well.

As Ennis looks in the pric-ing crystal ball, he anticipates demand will remain strong in feed grains. But, at some point

a buying industry reaction could occur to move those levels back down.

“One initiative OFARM members are consider-ing is to begin assembling production for the ’08 crop, and negotiate forward contracts to maintain current price levels,” said Holle. “It is a group eff ort of several organic bargaining groups, that happen to be under OFARM’s umbrella.”

Carroll Wade speaks to the media at Farm Aid Kick-Off Press Conference.Carroll Wade speaks to the media at Farm Aid Kick-

Carroll Wade was grin-ning from ear to ear when he learned that Farm Aid was planning its next concert for New York City. It’s no wonder, the veteran National Farmers board member is proud of his state’s third in the nation status for dairy production.

And when the big day arrived, Wade took

the opportunity to promote agriculture and National Farmers at the 22nd an-nual Farm Aid concert, held on Randall’s Island, in Manhattan, New York.

“I spent a week helping to promote the Farm Aid concert and showcase ag-riculture to millions of Americans,” said Wade. “For 2 decades, Farm Aid has been keeping the plight of rural America in the forefront, and attempting to give a hand up, not a hand-out to farmers across the country.”

Wade was interviewed by Bloomberg News and CNBC. He reminded listeners on CNBC that producers from all segments of agriculture are at their best when working together to raise agri-cultural income across the board in order to gain

prosperity for rural America. “I’ve always believed that the most important

people on the planet are the ones who plant the seeds and care for the soil where they are grown,” said Willie Nelson, Farm Aid president. Indepen-dent family farmers are the pillars of their com-munities. They grow high quality food, are active in civic life, and are essential to the economic vitality of both their hometowns and the nation. As stew-

ards of the land, family farmers work to protect the soil, air, water, and biodiver-sity in addition to producing high-quality, healthy food for everyone.

“Farm Aid works to increase the

number of thriving family farmers,” said Carolyn Mugar, executive director of Farm Aid. “The good food movement would not be possible without the family farmers who care for the soil and water, pro-ducing the quality food that everyone deserves.”

—Continued from page 1

3

1948 last year farm price parity achieved, organic producers affected by key factors

GAO, Harkin spotlight concerns about national animal ID system, USDA continues refi nement

Big Apple plays host to Farm Aid, Wade spreads National Farmers’ good will to attendees, media

The Government Accountability Offi ce high-lighted concerns with the USDA’s proposed nation-al animal identifi cation system in a report released in August. GAO completed the analysis because the livestock industry contributed nearly $123 billion to the U.S. economy in 2006.

U.S. Sentator Tom Harkin, D-IA, chairman of the Senate Agriculture, Nutrition, and Forestry Committee, requested the analysis in Nov. 2005.

“This GAO audit confi rms the concerns of producers and livestock market operators had about USDA’s animal ID plan for some time now,” Harkin said. “USDA has much further work to do so that this system is on the right track and workable. I urge USDA to make it clear to producers what is expected of them and how they envision this system working.”

National Farmers adopted a resolution several years ago saying any such system should be vol-untary, and at no cost to producers. The BSE and FMD incidents, which precipitated the eff ort to-ward an animal identifi cation system, are estimated to have cost cattle producers billions of dollars in lost sales and markets in the U.S.

In a document highlighting concerns for eff ec-tive implementation the GAO said:

• USDA has not prioritized the implementation of NAIS by species or other criteria. Instead, the agency is implementing NAIS for numerous species simultaneously, causing federal, state, and industry resources to be allocated widely, rather than being focused on the species of greatest concern

• USDA has not developed a plan to integrate NAIS with pre-existing USDA and state animal ID requirements. As a result, producers are generally discouraged from investing in new ID devices for NAIS

• USDA has not established a robust process for selecting, standardizing, and testing animal ID and tracking technologies

• USDA does not clearly defi ne the time frame for rapid traceback, possibly slowing response and causing greater economic losses

• USDA does not require potentially critical information to be recorded, such as species or age, in the NAIS databases

• USDA has awarded 169 animal ID coopera-tive agreements totaling $35 million but has failed to adequately monitor the agreements or determine if the intended outcomes, for which the funds were used, were achieved

• USDA has also not consistently shared the results of the agreements with state departments of agriculture, industry groups, or other stakeholders to allow them to learn from experience under the cooperative agreements

Harkin’s offi ce highlighted these concerns in August, along with its concern that USDA has no benchmarks to determine if there is suffi cient par-ticipation to achieve an eff ective animal ID system, as a voluntary program.

The original plan called for mandatory record keeping and reporting, but in the fall 2006, it shifted to a voluntary program because of contro-versy surrounding the fi rst suggestion, a mandatory program. GAO said USDA offi cials are determining what participation levels are needed to meet the program’s goal, and may, in fact, release bench-marks.

being able to think about prices that are 100 per-cent of parity, and we believe that we can provide organic producers an opportunity to maintain and carry those prices into the future,” said Oren Holle, president of OFARM. “It’s quite an accomplish-ment, and now we’d like to make it a reality for other crops as well.”

Parity is generally thought of as a level for farm-product prices maintained by governmental support and intended to give farmers the same purchasing power they had during a chosen base period. In other words, parity is a measure of how the value of the farm production stacks up against the cost of inputs for that opera-tion.

“Corn and wheat are the hottest grains right now,” said En-nis. “Producers think it is amaz-ing…we’re selling a lot of wheat at outstanding prices.”

But in the organic dairy-producing sector, a current price level of $22.50 plus premiums, is only about 60 percent of parity. “We learned from our bargaining experience in National Farmers that low prices drag down higher ones, so we’re sensitive to dairy producers’ input costs,” said Holle.

“We are also looking for every opportunity to assist in bringing the lower prices up to compara-tive levels so all producers have the chance to share

Sue Neisen lives near Delano, Minn.

Date Location Venue Speaker Contact Phone/E-mailOct. 10 Miffl enburg, Penn. Carriage Corner Ron Mattos Dave Kaseno 800.221.1718Oct. 12 Berlin, Vt. Hilltop Inn Ron Mattos Dave Kaseno 800.221.1718Oct. 13 Madison, N.Y. Quacks Diner Ron Mattos Dave Kaseno 800.221.1718 Nov. 10 Huron, S.D. The Plains Brad Rach Arlen Hanson 605.396.2498Nov. 27 Plain City, Ohio Der Dutchman Ron Mattos Bill Goettemoeller 937.526.3535Nov. 28 Earlville, Iowa Community Center Paul Olson Norbert Hackman 563.534.7646Nov. 29 Great Falls, Mont. Ursiline Center Ron Mattos Jess Alger ejalger@yahoo.comDec. 1 Manitowoc, Wis. Holiday Inn TBA Don Hamm 262.689.0401 Dec. 8 Effi ngham, Ill. Keller Convention Ctr. Ron Mattos Ron Schultz 217.343.7174Dec. 8 St. Cloud, Minn. Territory Golf Course Paul Olson Butch Schilling 320.745.2503

Remember the national convention in Milwaukee, Wisconsin Jan. 14-17

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Friendly Faces of National Farmers highlights Minnesota staff;Christensen, Neisen understand marketing, enjoy family life —Continued from page 1

When Ryan Christensen, Fergus Falls Market-ing Center manager, isn’t meeting with farmers and helping them market their cattle, he’s partnering in the work of the 400-head family cow-calf operation.

So Christensen understands what producers need, and en-joys all the contact he has with other farmers in his new role. (He started in July.) He tracks the marketing center fi nances, and serves on a procurement team, promoting National Farmers Maximum Marketing programs to producers. That means sharing with farmers the features and benefi ts of Cash Cow Plus, the cull cow marketing program, along with Profi t Plus, the marketing program for fed cattle.

Ryan’s father, Ron, and mother, Ann, belong to National Farmers, as did his late grandfather, Bill, who served as Minnesota state president. His brothers, Reed, Roger and Riley, work in the operation, and belong to National Farmers, as well. Roger and Riley are still in school and participating in Future Farmers of America, as did Ryan when he was their age. In addition to the cattle operation, the family raises organic buckwheat.

Ryan and his wife of four years, Jessica, have a

seven-month-old daughter, Emily. “I really enjoy being a dad. I like it. It is fun watching Emily grow and discover new things.”

Jessica works at Northern Contours in Fergus Falls as an accountant. The company makes cabinets, table-tops and doors.

The family has four quarter horses, Dottie, Denver, Eagle and Jessi, so they enjoy trail rides with them, herding cattle and riding them on the farm. They also enjoy attending rodeos, taking in the barrel racing to bull riding, and of course, the comedy of the noble clowns.

They also enjoy camping in their home state and par-ticularly enjoyed traveling to the Black Hills two years ago and appreciating the great

outdoors there.“While working for Na-

tional Farmers, I know that we are marketing production in the best way possible for the farmers. By blocking production together and using collective bargaining tech-niques, we are getting a fairer price and moving closer to a reasonable profi t for our producers.”

“That is the reason our family has been NFO members for 40 years,” Christensen said.

Jessica, Ryan and Emily Christensen live near Battle Lake, Minn.

Living in central Minnesota, west of the Twin Cit-ies near Delano, Minn., Sue Neisen sees fi rsthand the importance of agriculture in the United States, and she’s enjoying her career in National Farmers’ objectives to grow the marketing programs’ reach to more producers.

During the summer of 2006, she worked part-time, focusing mostly on grain procurement. She was hired full-time in June, and is part of the organization’s regional multi-commodity, program-growth endeavors. And she’s enjoying it.

“I’m meeting a lot of people,” she said. “Learning a lot about agricultural industry - how milk, livestock and grain are marketed. How these commodities are really

marketed.”She likes taking care

of her customers, too. “Follow-up is something I really strive to do with my job,” she said, “and giving personal attention to pro-ducers I have in my area.”

She sees the impor-tance farmers’ partnering in commodity sales, and wants to show producers how well the Maximum-Marketing programs work.

“We’re trying to get these guys to think more

about marketing, and the most optimum position to be in, in terms of marketing,” she said. Neisen grew up on a dairy farm, and holds an agricultural marketing and industries degree from the University of Minnesota

College of Agriculture in St. Paul.Neisen has a small farm, and rents out

the land. She has herself been a National Farmers member since 1993, and has served on the state board since 2001.

There’s more to Neisen than her work, though, with a 13-year-old daughter, Josie, and a 22-year-old daughter, Toni.

Neisen enjoys gardening, both fl ower and vegetable, which Josie helps with. “Raspberries, especially golden raspberries are my favorite thing to grow,” she said.

“Josie and I do a lot of mom and daughter things,” Niesen said. During October, the Minnesota Education Asso-ciation holds a convention and school kids get a two-day break from school, making a four-day weekend. So, Neisen and Josie take advantage of the time for special trips they call their MEA adventure.

They’ve enjoyed Mackinaw Island, Mich., Lanesboro, Minn., the Spam Mu-seum in Austin, Minn., and the Chicago zoo on these trips, to name a few.

The mother-daughter pair also enjoyed a special winter vacation last year. A Disney cruise. “It was so awesome. We met some designers for Disney, and became friends. We sent them a box of golden raspberries because they’d never heard of them,” she said.

MilwaukeeBeer, Brats

& BBQ Tour

“People who don’t forward contract with Grain Marketing Plus are missing out on hav-ing someone review-ing the markets all the time...they’re missing out on opportunities to cash in on markets that most producers aren’t aware of.”

— Carl Wahlmeier

he explained. Then he has fewer pastures to check, be-cause the pairs are in larger groups. He runs more water tanks in the pastures to keep an ample water supply for the herd – in case the wind doesn’t blow, keeping the windmills running and pumping water.

Family operation setupThe National Farmers National Board member keeps

it mostly in the family, completing wheat and fall harvest and spraying with his cousin, Jeff Wahlmeier. They work out the details to benefi t both operations. In the past they used Carl’s sprayer, but now they use Jeff’s because it has a guidance system. “It’s easier and faster.” And whoever’s ground you’re working on, that one furnishes the fuel.

Jeff’s twin sons used to help – now one is a police offi cer, and one just completed an internship for crop consulting. They help with wheat and fall harvest when

they can. For

the last two years a retired gentleman has helped with running the tractor for the sum-mer fallow. Two of Wahlmeier’s sons, Dan and Curt,

live closeby, and help with harvest when they’re not working. And Linda, and Jeff’s wife, Mary, help, checking cattle, moving equipment and being the ever-important helping hand.

And their daughter-in-law, Becky, Curt’s wife, helps with livestock occasionally.

“She was really important during a snowstorm in January. We were calving in January. (He normally slates calving for the fi rst part of February because of work

associated with planting crops.) The cows deliv-ered the calves out on the cornstalks, and Becky had to go get them, and we had a situation with cows not claiming calves.” She was there through it all.

Carl and Linda’s son, Cary, lives in Kansas City and they farm some of his ground. Their son, Craig, grandson, Gentry, 16, from Arkansas came to help with harvest. “Gentry is getting the hang of the combine,” his grandfather said.

Carl’s brother, John, who lives in Arizona helped with harvest at the end of June, and during the fi rst part of July. “It was the fi rst time he helped with harvest since college,” Carl said. “It was an experience for him with all of the equipment changes since that time. He ran the grain cart. He really enjoyed himself. I hope he enjoyed himself so much that he’ll come back and help again.”

5

Kansas farm family capitalizes on for-ward contracts, predictable price levels—Continued from page 1

“I think they’re passing up a big opportunity to cash in on advance sales,” he said. “Some are reluctant to sell what they don’t have yet, but with crop insurance, if there’s an issue, you can use that to buy back into the market and fulfi ll contracts.

“People who don’t forward contract with Grain Mar-keting Plus are missing out on having someone reviewing the markets all the time,” he emphasized. “They’re missing out on opportunities to cash in on markets that most pro-ducers aren’t aware of.”

“Carl grows different varieties of seed wheat and that requires him to have on-farm storage,” explained Pete Lorenz, his Grain Marketing Plus representative. “And the benefi ts of that on-farm storage spill over into his conven-tional marketing.

“As long as the grain is on the farm, you can keep negotiat-ing/bargaining and every market in the world is still open to you,” Lorenz emphasized. “In my estimation farm storage, depend-ing on market conditions, pays for itself in three to fi ve years.”

Carl and his wife, Linda, run a 1,750-acre crop opera-tion. It’s divided up in three categories. They run approxi-mately 550 acres each of rotation wheat for seed; corn, grain sorghum or milo; and summer fallow.

“We plant all corn in wheat stubble, and some milo the same way,” he said. Sometimes (this year) he grew milo on the same ground two years in a row. He’ll switch back to corn next year. “I always have to have some little experi-ment going on somewhere,” he added.

They are approved to sell three wheat varieties developed by Trio Research, plus public varieties Jagger and Overley. All the seed is cleaned and sent to the Kansas Crop Improvement Association Lab in Manhat-tan, Kan. before it is sold. That way it earns its label, showing it to be proper in terms of seed purity, germination, and percentage seed versus other contents.

“In my opinion, Carl does a lot of things right,” Lorenz added. “To be a certifi ed seed grower, you have to apply and do everything right. That implies to me, he’s a good opera-tor. And Wahlmeier understands the value of farmers working together.”

The Jennings, Kan., family farm is diversi-fi ed. Most of the Wahlmeiers’ 1,300 acres of grassland is in the EQUIP program, and it’s dotted with a 100 pair cow-calf herd. They graze rotation-ally with grazing cages – wire panel set out in the pasture to keep cows from grazing areas beyond the boundaries. It helps Wahlmeier to compare what’s happening with the grass and ground in different areas.

“Our grass is considerably better than those who don’t rotationally graze. The grass is taller, with deeper roots, and it gets more moisture and nutrients out of the ground,”

From left: Craig Wahlmeier, Jeff Wahlmeier, Gentry Wahlmeier, Carl Wahl-meier, Mark Carter, and Stan Shaw take a brief break during harvest.

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�����������Looking for a winning combo

for fun during your convention getaway? Try the Milwaukee Beer, Brats & BBQ Tour. It features a winning combination of lunch at Saz’s, Milwau-kee’s famous barbeque restaurant, a tour of Miller Brewing Company (including its historic caves), and a trip to Usinger’s, a German family sausage-making business.

You’ll hop on a luxury coach at convention end and head to Saz’s, voted #1 for the city’s best bar-beque and ribs. The buff et lunch features a choice of BBQ riblets or meatloaf with Saz’s Vadalia onion sauce, and all the trimmings.

After lunch, the bus will take you to the Miller Brewing Com-pany, in business since 1855.

Experience a three-screen video before watching the brewing and packaging pro-cess fi rsthand. Then you’ll get to ride the bus and visit the caves, a historic site where the beer kegs were kept cool in the early days. Then visit the tasting room where everyone 21 years and older (i.d. required) can enjoy frosty beer samples, or request a soda.

A trip to Milwaukee wouldn’t be complete without a stop at Usinger’s, where you can shop for delicious bratwurst, summer sausage, ham, frank-furters and link sausage, to name a few of their premium products. Enjoy the Elf murals through-out the store, and you might even hear a legend about sausage-making elves. You’ll arrive back at the Hilton at about 5 p.m.

Brewery tour includes walking up and down steps and a 1/4 block walk outdoors.

A limited number of seats are available so call to register. The $29 fee must be paid by Dec. 19. Make check out to National Farmers Organization. Visa or Mastercard is also accepted.

No registrations will be taken after Dec. 19. Cancel-lations after that date are non-refundable.

Please call Melanie Dungan in the Na-tional Farmers home offi ce for more infor-mation, or to schedule your Convention ’08 tour.

$29 per personThursday, Jan. 171:15 p.m. - 5 p.m.

Read the latest scrolling ag news at www.nfo.org

Provided by the Institute for Rural America

Keegan Crawford and his winning entry.

Commodity & Unit Price Received 100 % Parity Parity Received In cents /lb. Cotton, per lb. 0.522 2.06 23 0.522

Wheat, per bu. Corn, per bu. Barley, per bu. Grain Sorghum, per cwt. Soybeans, per bu. Oats, per bu. Dry edible beans, per cwt.Milk (all), per cwt.Beef cattle (all), per cwt. Calves, per cwt.Hogs, per cwt.

7.16 11.00 65 8.373.19 8.13 39 5.694.27 7.66 56 8.896.02 13.90 43 6.28.34 18.00 46 13.92.30 4.55 51 7.1824.90 57.60 43 24.921.80 40.60 53 21.8 93.30 215.00 43 93.3 128.00 309.00 41 128.047.00 123.00 38 47.0

September farm prices received increases 2 points

6

Source: Agricultural Prices – National Agricultural Statistics Service, USDA

By Sarah Nelson

Iowa memberʼs grandson, mom promote National Farmers, take fi rst place prizes in autumn festival

Tickets Just $5 each, or 6 for $25

The cattle market, which typically sees a fall rally, has found strength earlier this year than nor-mal. We’re currently trading over $100.00 per cwt. for the months of December., February and April on the futures market, and there is a lot of bullish-ness through the fall and even into early winter.

But the cattle market isn’t the only segment that has been strong; grains, especially wheat, have also been recording historic highs. With the antici-pation of corn acres being converted to wheat, the corn price and its expected strength into the future, will certainly eff ect cattle producers. They will take a close look at the price of feeders and other input costs, to ensure there’s a profi t in feeding that corn to cattle.

Exports to South Korea are expected to resume this fall, and this should help price levels that will also benefi t from a seasonally increasing domestic demand. As the weather gets colder, demand for beef typically increases.

But, what impact will increasing product value (choice and select cut-out) have on domestic de-mand? Will the product value increase, along with the anticipated higher live cattle price? And will we reach a point where consumers choose substitutes like pork or chicken, when they’re grocery shop-ping?

The overall view of the cattle and beef market is optimistic for the fall, but the impact of more expensive product values and potentially higher carcass weights for cattle that producers are holding back for marketing may impact the market itself. If not negatively, it may somewhat hold the reigns back on the live cattle market.

Here’s a cautionary note on cull cows. For the last several months we have said that, for the foreseeable future, cull cow numbers will probably remain tight. That will keep pressure on cow killers and provide good opportunities for our Cash Cow Plus program. As of the beginning of October, we are seeing what the future will surely hold.

Sustained drought and normal fall culling of beef herds are putting pressure on the cull cow market. Record numbers have been moving through plants in the upper Midwest in recent weeks, and the supply doesn’t appear to be decreasing.

Long-term, this supply can’t be supported by the cow inventory we currently have in the U.S. or Canada. However, this increased supply has caused some logistical problems for your local collection points lately. More than once in recent weeks, pack-ers have requested that we hold back cows or send them elsewhere, whenever possible.

What can you do to help? Call your local col-lection point and schedule your livestock in ad-vance, whether it’s steers, cull cows or hogs. But it’s especially important to schedule the cull cows. By letting our staff build loads that can be negotiated for before delivery, profi t potential goes up.

And, if a full load can be booked, more packing plants become available to the negotiator. I don’t think I have to tell you how more packers bidding on your cattle aff ects the price you receive.

They say it’s not if you win or lose, but how you play the game. Tell that to 8-year old Keegan Crawford, and his mother Melissa. Together, they’ve teamed up the last 2 years to win Best of Show, People’s Choice and 1st place honors in the Waterloo, Iowa Autum Fall Festival.

And Keegan’s grandparents, National Farmers Iowa president, Greg Corkery and his wife, Kathy are mighty proud.

“Keegan liked winning the competition for best scarecrow last year, and this year he was even more committed,” said Kathy Corkery. He got his idea for this year’s winning entry while helping out with chores on the Corkery’s

farm, according to Melissa, his mom.“He likes feeding calves, and

one day it just occurred to him that for this year’s entry he should have a scarecrow feeding a calf,” said Melissa, who works for Klima Small Animal Hospital as a Veter-narian Assistant.

“He picked the National Farmers cap out of his grand dad’s stuff in the basement, and used it for his entry.”

And the rest, as they say, is history for the young Jessup, Iowa boy and his mother. Thousands of people attended the Annual Fall Festival, that raises money for Waterloo’s Cedar Valley Arbore-tum.

The preliminary All Farm Products Index of Prices Received by Farmers in September, at 142 percent, based on 1990-92=100, increased 2 points (1.4 percent) from August. The Crop Index advanced 3 points (2.1 percent) and the Livestock Index increased 2 points (1.4 percent). Producers received higher commodity prices for wheat, lettuce, eggs, and cattle. Lower prices were received for hogs, corn, strawberries, and onions.

The overall index is also affected by the seasonal change based on a 3-year average mix of commodi-ties producers sell. Increased average marketings of soybeans, corn, apples, and peanuts offset decreased marketings of cattle, wheat, broilers, and grapes.

The preliminary All Farm Products Index is up 23

points (19 percent) from September 2006. The Food Commodities Index, at 146, increased 3 points (2.1 percent) from last month and 24 points (20 percent) from September 2006.

Prices Paid Index up 1 PointThe September Index of Prices Paid for Com-

modities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 159 percent of the 1990-92 average. The index is up 1 point (0.6 percent) from August and 10 points (6.7 percent) above September 2006. Higher prices in September for nitrogen fertilizers, diesel fuel, and feeder cattle offset lower prices for complete feeds, feeder pigs, and feed grains.

Currently you can lock in the December CBOT futures price at a better price than the Revenue Assurance February average was for the 2007 crop year.

7

By Linda Reineke By Brad Rach

I saw in the news that the Government Account-ing Offi ce is once again taking a suspicious look at the cheese markets. One report I read said that the spot market is “ripe for manipulation.”

We’ve seen this before, of course. Every time it comes up, almost all the farmers I talk with believe that cheese prices can be manipulated in some markets. What they are saying, basically, is that they believe cheese buyers can be price makers, not price takers.

Those same farmers often believe just the op-posite about themselves. They think they are price takers, not price makers.

If cheese buyers can be price makers, why can’t dairy farmers? The news stories I read said cheese buyers can aff ect prices because there are not very many of them. If dairy farmers would act together, we would have the same thing—the buyers would see only a few representatives of our organization, instead of thousands of us shouting “What will you give me?”

We have the legal right to act together and start on the road to becoming price makers. If they can do, why shouldn’t we?

Current wheat and soybean prices are not going to encourage farmers to keep planting corn. With the uncertainty in future increases of ethanol production, farmers need to carefully consider their planting decisions for next year.

As an illustration, another ethanol company has cancelled plans to build a 100-million-gallon plant, this one in Akron, Iowa, reportedly because of tight economics.It appears to be indicative of what’s been happening, and also what may be in store for the ethanol industry.

Ethanol futures prices have been falling since March, corn prices have been higher than average for most of the spring and summer, and there have been reports that investors are losing interest.

In recent months, the ethanol industry has been showing signs that tighter economics are putting a strain on some new construction. This has led to the announcement of a number of project delays, cancellations and buyouts. Larger companies have announced plans to buy smaller companies.

St. Paul, Minn., based U.S. BioEnergy offi cials have said publicly they intend to continue buying plants with good feedstock supplies, newer technology and in the 50- to 100-million-gallon production capacity range.

Up until recently, strong political support was one of ethanol’s great strengths. Over the years, Congress has given the ethanol industry the 51-cent blender credit, the 54-cent tariff and more recently the 7.5-billion-gallons-by-2012 Renewable Fuels Standard (RFS). Earlier this year, when President George W. Bush proposed a sharp

increase in the RFS, the only question seemed to be whether Congress would push through an even sharper increase.

Today, it’s unclear whether Congress will pass any increase at all. The Senate’s version of the pending energy bill includes a signifi cant one. The House version doesn’t even mention the RFS. Failure to pass a meaningful increase would hurt the ethanol industry and, by implication, the corn

growers who supply it. Short- term, the industry needs a catalyst for additional demand. With production capacity doubling in the next year or so, output will approach the limits of E10 demand nationwide. That leaves a higher RFS as the industry’s best hope.

Critics of RFS have been out in force touting concerns about ethanol production’s water and natural gas usage and how that use aff ects supply, and ultimately prices, for everyone.

Of course, the biofuels starving the poor contingent is also very vocal. Also consider the large increases in ethanol production from sugar cane.

Whatever you are considering planting next year, please consider your cost of production and notice the prices available for 2008. Currently you can lock in the December CBOT futures price at a better price than the Revenue Assurance February average was for the 2007 crop year.

Remember that your National Farmers grain marketing representative can help assist you in making your marketing decisions.

SHOW YOUR NATIONAL FARMERS

PRIDE!

ORDER YOUR FARM SIGN TODAY!

Just $39, plus $18.50 shipping and handling.

There is a 30” long by 5” tall space for you to paint or letter your family’s farm name.Call National Farmers for

more information.

800.247.2110

MIDWEST AIRLINES is offering a 10 percent discount on any pub-lished fare to fl y to National Farmers Convention ’08 in Milwaukee.There are several convenient purchase options:*Online: visit www.midwestairlines.com and type CMZ1606 in the promo code box*Telephone: Dial 800-452-2022 and provide the CMZ 1606 deal code to a Midwest Airlines reservation agent

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MAKE YOUR CONVENTION TRAVEL PLANS NOW!

Make your Convention ʼ08 Hotel reservation ����������������������������������������������������������������������������������

Arrival date: _________________ Time: ______ Departure date: _____________Name: ______________________________ Share with:________________________Address: _______________________________________________________________City: ______________________________________ State: _______ Zip: _________Telephone: ( ) _________________________ No. of people: ________________Room type requested: ( ) 1 person ( ) 2 people ( ) 3 people ( ) 4 people( ) Smoking ( ) Non-SmokingCredit Card for guarantee: ( )AmEx ( )Visa ( )MC ( )DiscoverCard Number ___________________ Guarantee signature __________________ Expiration Date ________________ Cancellation Policy: 48 hrs prior to arrival

Room rates – $80 single - double, plus state and local taxes. Deadline date to receive this room rate is December 21, 2007

Convention ʼ08 Jan. 14-17, Milwaukee, Wisconsin

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Check in time: 3:00 p.m. Check out time: 11:00 A.M. 1 nightʼs deposit with check or credit card is required. Call 414-271-7250 and ask for the National Farmers group rate.To FAX your reservations: 414.271.1039

A publication of the National Farmers Organization

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Producer legacy assured through estate planning

October/November 2007

Leaving a legacy and estate planning go hand-in-hand. Across the country, ag producers care for their farms -—the land, the livestock and the business. They practice land stewardship, tend to fi nancial details and maintain facilities. They want to leave something of value to the next generation.

But many families are surprised that after the loss of a loved one, without the proper planning, a big per-cent of an estate can be lost, too. Taxes, fees, debt and administration expenses can cut an estate by 48 percent or more. Because farming is so heavily focused on fi xed assets, estates simply don’t have the cash on hand to pay these estate settlement expenses, and fi xed assets have to be leveraged or sold. But it doesn’t have to be that way.

Because legacies do matter to farm families, Na-tional Farmers and Securian Advisors MidAmerica have partnered to help you protect your agricultural invest-ment. Looking out for your best interest, we work with a team of professionals, including your attorney, insur-ance adviser, trust offi cer and accountant. We can help you pass on your farm and assets the way you want. And minimize your taxes, expenses and probate costs.

Working with you, and your team, we capitalize on and consider the following tools to protect your estate:

• Contracts• Property ownership arrangements• Trusts• Charitable gifts• Life insurance policiesAs you begin planning for the next generation, you

need to understand what a good estate plan includes.

The most important task is to determine what you want your goals and wishes to be for your estate. If you can vocalize that to your team, then the process can be put in place to reach your goals. Your team can design an approach to provide for:

•A clear, organized, timely transfer of assets, done according to your wishes•Income for survivors to prevent cash fl ow problems before assets are distributed•Liquidity to meet expenses, which protects families from selling property or other assets at great loss•Reduced taxes and costs because of quick estate settlement and proper arrangement of assets•Eff ective estate management

When you sit down with your estate planner let them know what you want to accomplish with your as-sets. Then be ready to ask good questions. Good starter questions include these:

•What happens if my current plan isn’t suffi cient?•What happens with our farm if we have no plan?•Would you help me develop my fi nancial profi le and identify my goals?•What would the cost of settling my estate be? (Based on information you provide.)•Can you show me some creative alternatives that will help me meet my goals?•And would you give me a written explanation I can refer back to, of where I am now, and what recom-mendations you’re off ering?

When it comes to leaving a legacy of farm assets, it’s very important that all the details, paperwork and legal concerns are covered. With

The National Farm-ers Executive Board of Directors has voted to assign a surcharge fee of $50 to the annual membership fee of $75. Because of increased

The National Farmers Executive Board of Di-rectors has voted to assign an additional operational fee of $50 to all producers’ annual membership fee of $75.

The membership fee of $75 has not been increased since the early 1970s. The new fee will be used to off set increased operational business and administrative costs.

All lifetime members will be asked to voluntarily contribute $50. Members will see the new fee on their dues notices, and dairy producers will receive notifi cation in dairy checks. The national board of directors will evaluate the issue to determine how to handle the operational fee/dues in future years.

the signifi cant changes in farmland values many estate plans are already outdated. Where are you really in estate planning? Are you satisfi ed that your wishes will be carried out? You can help the dreams of your next generation come true. Call 888.nfo.agri or e-mail don.homan@securianmidamerica.com.