•Twentyyearsontrack•Familyenterprisesgrowtogether•Standingincotton,lookingatcorn•Arecarboncreditsyournextcommodity?
Winter2008
Farmingwithout
oftherhythm
rainthe
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Cat & Challenger are registered trademarks of Caterpillar. ©2007 AGCO Corporation CH499E07V01
For more information about Challenger, visit your local CAT dealer or visit us on the web at: www.challengerag.com
Standing in cotton,looking at corn
First in the field Tech Corner
Winter2008
Farming without the rhythm of the rain
2
16
Family enterprises grow together
8
10
14
Credits
Editor TharranE.Gaines
Field Editors HarlenPersinger,RodFee,DennyEilers,SusanFotovichMcCabe
Associate Editor KimLewis
Creative Director AaronCooper
Publisher BrushArtCorporation
VP/Publisher TomBrush
Customer Service InformationForquestionsandcomments,pleasewriteto:ChallengerRevolution,P.O.Box217,Downs,[email protected],pleasecall1.785.454.3383.
©2007BrushArtCorporationPrintedandboundbyDonlevyLithograph,Inc.,Wichita,KS.
4
Twenty years on track
Are carbon credits your next commodity?
12
My best idea
7
2•ChallengerRevolution•Winter2008
ByHarlenPesinger
Stuck with a shallow sandy loam soil and only eight inches of
moisture per year, Boyle Family Farms LLC, always comes through in
the end and manages to raise supreme crops.
“Due to the climate, isolation and 2,300- to 2,500-foot elevation, this is
one of the premier seed-producing areas in the world,” says Don Boyle.
“However, because we‘re located in the rain shadow of the Cascade
Mountains, modernization and top-flight management have to make up
the difference if we’re going to compete in global agriculture.”
Boyle, along with his wife, Peggy, and son, Ryan, and his wife, Heidi,
farm across a six-to-seven mile radius on the Agency Plains, near Madras,
Oregon. This tiny area covers 55,000 acres and borders the Warm Springs
Indian Reservation.
BoyleFamilyFarmssitsintheshadowofMt.JeffersonintheCascadeMountains.Theycanseeeightotherpeaksfromtheirfarmheadquarters.
Farmingwithout
oftherhythm
rainBoyle Family Farms LLC • Madras, Oregon • Bluegrass seed, commercial and seed wheat, alfalfa, carrot seed, dill seed and straw
the
ChallengerRevolution•Winter2008•3
After graduating from Oregon State University, Boyle went into
partnership with his father-in-law and then purchased the 500-acre
operation in 1990. Ryan, who graduated from the University of Idaho,
joined the enterprise 11 years ago. Crops include bluegrass seed, alfalfa,
carrot seed, dill seed and commercial and seed wheat.
To stay competitive and boost their bottom line, the Boyles constantly
upgrade their farming practices. Besides adding acreage and purchasing
some land the past five years, other innovations now include:
• Laser leveling
• GPS-guided steering for planting and cultivation
• Growing more alfalfa in the crop rotation for sale to dairies in the
Willamette Valley
• Retooling irrigation systems
• Increasing carrot acreage from 100 to 250 acres and setting up more
drip irrigation on this crop
• Sharing technology with area producers
• Improving machinery engineering
“Since we thrive on niche crops, any degree of downtime can put us
behind the eight ball in a hurry,” Don says. “The best innovation we have
introduced on the farm has been GPS technology. It takes the pressure
off certain management decisions and helps ensure proper plant
placement, more accurate leveling and improves efficiency in the field.”
One machine that’s made a positive impact for the Boyles is their new
Challenger® SP185C windrower.
“We wanted a rotary cutter to cover ground faster,” Don adds. “By
running at eight to 10 mph with this unit, we’re able to cut 40 acres
in three hours versus eight before. Shortening this time frame from
watering to cutting to baling to watering decreased the production
schedule about two days per cutting.”
On four cuttings, they can save eight days, which results in a
production increase of 1 to 1.5 tons per acre per season. On 400 acres
at $170 per ton, the extra weight notches an additional $68,000 in the
profit column. Even with only a half ton increase, gaining $34,000 is a
substantial amount.
The other perk is reduced manpower requirements. On just 40 acres of
alfalfa, they’re able to reduce labor costs $3,000 during one season.
Purchasing a Challenger MT565B wheeled tractor in 2005 and
equipping it with a GPS-based guidance system has also paid dividends.
Teaming the machine’s horsepower with this technology removes human
error while planting, cultivating, applying dry fertilizer or side-dressing.
“With GPS-guided steering, there is much less fatigue trying to follow
the planter marks, especially in dusty conditions or at night,” Ryan says.
“Now, I’m able to pull into a field, set the coordinates, drive to the other
end and punch in a number. The GPS system instantly takes over and
we’re able to drive within an inch of accuracy as far as you want to go.”
With input cost averaging $2,000 to $2,500 per acre to grow carrot
seed, this is one crop in which the Boyles can ill afford any open spaces.
Due to the high risk of disease and seed contamination, the seed must be
raised in isolation in a five- to seven-year rotation.
The production cycle normally follows bluegrass harvest in July. A mix
of 16-16-16 granular fertilizer is spread at 300 to 400 pounds an acre.
Fields are watered, disked five times, moldboard plowed 10-to 15- inches
deep, cultivated and leveled with a land plain and laser before seeds go
in by August 15.
“The key component for successful germination, which takes a couple
of weeks, is maintaining wet ground,” Ryan says. “That’s why solid-set
hand sprinklers cover fields immediately after planting.”
To remove weeds, the crop is hoed by hand once in the fall and two or
three times in the spring. Around June 20, four to five hives of common
honey bees are placed on each acre at a cost of $200 an acre.
“Besides monitoring weekly for weed and pest infestations, fields
are constantly being watered,” Don says. “Carrots require 30 inches of
moisture an acre from planting to harvest. In August we stop irrigating
and pull the bees.”
Once seed has been harvested at moisture levels below 12 percent, it
must pass contamination specs. In the meantime, it is cleaned, processed
and packaged in 1,000-pound cardboard boxes. Once, germination levels
are verified, seeds are shipped to area companies the Boyles contract
with, or to Europe.
“Since we are limited to a specific cropping program, it’s imperative
that we gross $1,000 an acre,” Don explains. “Therefore, in order to
survive, technology is shared among growers and it’s the vested interest
for all producers to do the best possible job each year.” n
ExcellentvisionandfuelefficiencymaketheChallengerMT565BaperfectfitforDonandRyanBoyle’sfarmingoperation.
4•ChallengerRevolution•Winter2008
y e a r sTwenty
trackon
1987 - 2007
yearsyearsOn TrackOn Track
AspecialMT875B,paintedwhiteandcustomizedwithyellowleatherupholstery,diamond-platestepsandan8-inchchromeexhaust,wasbuilttocommemoratetheChallengertracktractoranniversary.
ChallengerRevolution•Winter2008•5
TrackTractor Timeline
1982Bat (belted ag tractor)
prototype built and tested
1979 "Beadless tire" belts tested on
a Cat motor grader
1983 Additional track testing on converted Cat D6D models, followed by X2 prototypes.
1987The Challenger 65 — the first rubber
tracked tractor — introduced.
1991Model 65B, Model 70 and
Model 75 introduced
1993Models 65C, 75C
and 85C introduced
1993 First row-crop productionprototype built and tested
1996 Model 85D introduced
1995 Row-crop Model 45 and Model 65D introduced.
1999E Series introduced (75E, 85E and 95E)
2007Challenger celebrates 20 years
of track tractor production
2001Caterpillar introduces thee MT line that includes the MT700 and MT800 Series
2002AGCO acquires the Challenger
track tractor line from Caterpillar
2005Challenger introduces the MT “B” Series
that includes the 570-hp MT875B
ByTharranE.Gaines
An anniversary is a monumental occasion for any entity, whether it’s
a product, company or marriage. That’s why 2007 has been a special
year for Challenger®. It not only represents the 20th anniversary of the
Challenger brand name, but it has also been 20 years since Caterpillar®
introduced the first rubber-tracked Challenger tractor.
Any view beyond the past 20 years, though, is somewhat reminiscent
of the question about the “chicken and the egg.” In this case, however,
many are left wondering, “Which came first, the tractor or rubber tracks?”
The answer depends a little bit on how you look at it, says Jason Hoult,
general marketing manager for Challenger track and articulated tractors.
Even though Caterpillar didn’t introduce a Challenger rubber-tracked
tractor until 1987, Cat® track tractors had been used on farms for more
than 100 years.
To counter the growing popularity of four-wheel-drive tractors,
Caterpillar even offered five of its most popular track tractors in Special
Application (SA) versions for field work in 1966. By the mid 1970s,
Caterpillar began working on its own four-wheel-drive, articulated tractor
— developing and testing several prototype models in the process.
However, a decline in the four-wheel-drive tractor market convinced
Caterpillar management to cancel the articulated tractor in the early
1980s and concentrate on a rubber-tracked tractor that was also being
developed.
“Even though steel-tracked crawler-type tractors offered improved
traction and flotation in the field, they simply couldn’t compete with
wheel tractors in terms of speed,” Hoult explains. “Mobility between fields
became a big issue, as well, since farmers couldn’t drive steel tracks on
most roads.”
That is until Caterpillar developed the first cleated rubber track, often
referred to as the “beadless tire,” using some of the technology that was
perfected during the development of the XT line of hydraulic hoses.
Armed with their newest development, Cat engineers built the first
test platform for rubber tracks using the rear half of a motor grader
driven backwards to simulate a tractor. Having proven that the belts
could be driven by just one drive axle, Caterpillar set out to make a true
agricultural tractor on rubber tracks, starting with a prototype called the
Cat Bat Track”, or Belted Ag Tractor.
Disguised in red and black paint to look like a Versatile® tractor, it
allowed Cat engineers to take the rubber-tracked concept to the next
level with a swinging drawbar and ag tractor design. The final prototype
before Cat introduced the Challenger Series was the Cat Challenger X2.
“In essence, the X2 merged the original articulated four-wheel-drive
styling to the rubber-track technology that had been tested on the
D6 and Bat Track,” Hoult explains. “Although the cab was still pretty
rough, the X2 looked very close to the Model 65, which was eventually
introduced in 1987… changing the tractor industry forever.”
However, that was far from
the end of track tractor research.
While Caterpillar was introducing
additional models, including the 75,
as well as the more advanced “B”
and “C” Series, Cat engineers were
working on a new line of row-crop
Challenger models. And how better
than to start with a competitive row-
crop wheel tractor with the wheels
removed? A crossbar was then
attached under the frame and the
track system was mounted between the old axle and the crossbar.
After testing the concept on another tractor brand and model, Cat
engineers eventually perfected the idea on their own prototypes. The
end result was the Model 45 row-crop Challenger released in 1995 — the
same year a newer 65D was introduced.
By 1999, Challenger row-crop tractors were available in three power
ratings — the 175-hp Model 35, 200-hp 45, and 225-hp 55 — while the
latest “E” Series, which included a new 95E model, ranged from 310 to 410
horsepower.
Things changed rather quickly, though, in the 21st century. Just as a
new generation of Challenger MT700 and MT800 Series track tractors
was being developed, AGCO Corporation acquired the rights to the
Challenger brand name and the manufacturing rights to the product.
As a result, track tractor assembly was moved from the Caterpillar
plant in DeKalb, Illinois, to AGCO Corporation’s Jackson, Minnesota,
manufacturing facility in 2003 and marketed through the highly
“The Model 65 was eventually
introduced in 1987…
changing the tractor industry
forever.”
Continuedonpage6…
6•ChallengerRevolution•Winter2008
…continuedfrompage5
respected network of most Cat dealers.
Finally, in 2005, AGCO introduced the latest MT700B and MT800B
Series models. In addition to new Cat ACERT™ Tier III engines and more
horsepower, the new lineup included a new MT875B model rated at 570
gross engine horsepower — once again taking Challenger to a new level
among modern-day production tractors.
Duane Janikula, who grows corn and soybeans near Waverly,
Minnesota, still remembers the day he decided to buy a Challenger 75C
in 1993.
“I had been looking at the Challenger tractors since they came out,” he
recalls. “But the turning point came in the fall of 1992, when I was doing
some late tillage. We had gotten about eight inches of snow when one of
the guys from Ziegler Cat called and said, ‘Let’s demo a Cat.’
“I told him I thought he was crazy to even think about it, but he
persisted,” he continues. “Well, we took my Versatile four-wheel-drive
out there and didn’t even get our eight-bottom plow all the way in the
ground before it spun out.”
In contrast, Janikula says the Challenger not only sank the plow in the
ground, but took off through the field, burying corn residue, snow and
all.
“We literally plowed all day,” he says. “So that’s what put us over the hill,
so to speak.”
Since that time, Duane and his wife, Gloria, have owned a Model 65A
that was purchased used as a second tractor and a row-crop 35 that they
owned nearly eight years. Today, they own an 85D, a 65D and an MT745.
“The traction and the ride are probably the best features of the
Challenger track tractors,” Duane relates. “But they’ve also been very
dependable. The 65A had nearly 16,000 hours on it by the time we traded
it.”
The Janikulas weren’t the only early adopters of track technology,
though. Clyde Unz, who still helps his son, Duane, on the family farm near
Reddick, Illinois, says his father started using Caterpillar track tractors to
farm their heavy, black bottomland in 1928. In fact, the Unz family still
has two Cat D6 machines that they use for heavy tillage.
They also have a Challenger Model 65A that they purchased in 1988 so
they could traverse county roads and improve travel speeds.
“Field conditions have certainly improved since we put in drainage
tile,” Clyde relates. “But when they’re wet, you simply couldn’t go in some
of those fields without tracks. Instead of putting down 56 pounds per
square inch on a tire, we exert as little as seven pounds per square inch,
which lets us stay on top of the ground and not pack the soil.”
That’s part of the reason Duane is now looking at an MT700B Series
model for row-crop tillage and planting. In the meantime, the Unz family
can celebrate two anniversaries of their own next year. Like Challenger,
they will have been into rubber-tracked tractors for 20 years; and they
will have been on track for eight decades. n
1987 - 2007
yearsyearsOn TrackOn Track
ChallengerRevolution•Winter2008•7
Best IdeaBalancing act
“When trimming harvest losses with your combine, strike a balance
between trying to get everything and causing grain damage. To get
every last kernel with most combines — especially older machines —
you’ll have to set the machine so you’re getting kernel damage. So you’re
balancing loss out the back end of the combine vs. loss in the bin. In most
cases, you’re farther ahead to lose a small amount out of the back of the
combine and reduce damage in the bin. Check the bin and check behind
the combine. Check both.” —R.S.,Wisconsin
Make your mark
“Brand your cattle. With all the technology available today, a brand is
still the best means of identification. It’s permanent; you can see it from
a distance, and it’s not easily obscured. Ear tags and ID chips can all be
removed. The first thing a thief will do is cut off the ear tags.” —L.G.,Texas
Map the problem spots
“Carry a pad and pencil with you when harvesting crops or doing fall or
spring tillage. Draw a rough map of the field and mark any areas with
heavy weed problems or areas where the herbicide didn’t work. You’ll
have a head start on handling those problem areas come planting time
or when you’re shopping for herbicides.
Of course if you have GPS mapping on the combine, simply add a
marker to the map in the appropriate areas.”—C.W.,Iowa
Don’t discount the value of soil tests
“Soil testing is a job that’s easily put off in the fall. But soil testing is the
most important management tool that farmers can use in arriving at cost
effective fertilizer applications.
“The benefits are two-fold. First, the results show rates of plant
nutrients that need to be added in a fertilizer program to get the most
cost efficient yield. However, soil test results also show what nutrients are
supplied in adequate amounts by the soil and aren’t needed in a fertilizer
program.” —G.R.,Minnesota
Haste Makes Waste In Grass Hay
“As a rule of thumb, most cool season grass forages will experience
approximately a 20 percent loss in total digestible nutrients (TDN) and
a 40 percent loss in crude protein when harvest is delayed 10 days past
the most desirable stage for harvest. For fescue hay, that occurs from late
vegetative to early boot stage, even though yields are higher if harvest is
delayed until later.
“Unfortunately, much of the tall fescue hay in the Midwest is harvested
too late to make good quality hay. The goal should be to manage for
maximum leaf production without delaying harvest to a point where
crude protein percent and TDN are dramatically reduced.” —G.K.,
Missouri
What’s your “best idea”? Send it in and if published, you’ll receive ahighly detailed 1:32 scale Challenger® MT765 tractor ($55 value). Sendto: Editor, Challenger Revolution, P.O. Box 217, Downs, Kansas 67437 [email protected].
My
8•ChallengerRevolution•Winter2008
ByHarlenPersinger
Some folks have a passionate, lucky feeling for the number three.
However, at Galloway & Sons LLC that digit represents the pulse of
their daily business activities.
Tom Galloway, 67, and his two sons, Doug, 47, and Scott, 43, grow
400 acres of corn, 500 acres of seed soybeans and 100 acres of popcorn,
which is contracted to Con-Agra Corporation. However, since 1979 the
family has also maintained a metal scrap business in nearby Sandusky,
Ohio. And, if that isn’t enough activity to keep them busy, they process
100,000 tons of high calcium lime each year.
“Galloway Brothers Inc. was a venture I started with my brother, Denny,”
Tom explains. ”We purchase and sell new and used steel that goes to
factories and various business outlets.”
Today, Doug’s sons, Cole, 21, and Tyler, 20, work in the yard along with
13 other employees.
“Handling lime, a byproduct from the Huron Lime plant, started in
1990. That company supplies hot lime for purifying steel and water
treatments and we process and then sell it as a crop input,” he adds. “This
material blends well with the blow sand and silt loam to heavy clay
subsoil found across this area and is more desirable than quarried lime.”
Renting 250 acres in 1985 and using the income from both businesses
to purchase land was the spark for the Galloway’s farming operation. As
more of their neighbors retired and passed away, overall acreage and
equipment inventory continued to expand.
To improve their bottom line, they’ve turned to less tillage, rely on
GPS guidance for spraying and are sticklers for adding calcium and
magnesium on corn.
“Soil testing, checking requirements and then fulfilling them as needed
has paid dividends for us,” Doug says. “We spend extra dollars and really
push the application of calcium because it results in more uniform seed
emergence.
“Teaming calcium and magnesium together releases the proper
nutrient amounts needed to generate consistent yields,” he continues.
“Over the past five years, corn and soybean yields have averaged 180 and
45 bushels per acre respectively. By monitoring soil tests, we’ve reduced
fertilizer usage and only applied one load of potash during the past 15
years.”
flowtogetherFamily enterprises
Galloway & Sons LLC • Sandusky, OhioCorn, seed soybeans and popcorn
ChallengerRevolution•Winter2008•9
Current fertility and tillage practices are geared to produce 200-bushel
corn per acre. They rip ground every three or four years and come spring,
apply 200 pounds of ammonium sulfate per acre. After one pass with a
field cultivator or soil finisher, kernels are dropped at 30,000 seeds per
acre with a 12-row, 30-inch planter.
“We plant two to four hybrids each year and determine the choice of
numbers from side-to-side comparisons and test plot results. The final
selection criterion is based on yield, standability, drydown and cost,”
Doug says. “Due to increased pressure from ragweed and common
lambsquarters, some acres now include Roundup Ready® corn.”
Herbicides for grasses and broadleaf weeds are applied after corn
emerges. They utilize a GPS system on their sprayer that features a
79-foot boom. During the growing season anhydrous ammonia is side-
dressed at a rate of 150 pounds of actual nitrogen per acre.
Harvest, meanwhile, begins at 21 to 22 percent moisture. They unload
on-the-go into a 400-bushel grain cart and haul corn with two semis to
the bin site totaling 75,000 bushels of capacity.
Faced with variable weather
patterns, a narrow planting
window and varying degrees of
saturated soils on their fields,
the Galloways rely on track
tractors for completing most
tillage chores. Past results show
that yields decline by five to
seven percent if compaction
occurs during wet conditions.
“We started with Challengers
a dozen years ago and traded for
a model MT765 in 2004,” Scott
says. “This machine offers a smooth ride, excellent visibility and is easy to
maneuver with on-the-go hydraulic shifting. Overall power is streamlined
to handle the chisel plow and soil finisher. With tracks we’re able to avoid
compaction and can get into the fields two to three days earlier.
“Purchasing a model MT635 wheel tractor also made a perfect
match for our 12-row planter and 30-foot tool bar,” he adds. “Increased
efficiency with less weight, a strong hydraulic package and excellent
service were the perks that sold us on this machine.”
Even though farming is the final piece of their diversified operation, it’s
the most desired, but precarious occupation.
“Each business segment has its perks, but they all require hard work,
long hours, attention to details and super management skills,” Tom says.
“We’re fortunate that the entire family can be involved in three separate
enterprises. But concerns cloud the future.
“Only four miles separate the farm’s boundary from the city limits and
completed subdivisions already crowd the horizon,” he adds. “Prices for
acre lots are out of sight and the struggle for property certainly takes a
toll. It’s nearly impossible to forecast what might happen in five years.” n
Besidesfarming,TomGallowayandhistwosons,Doug,(redshirt),andScott,operateasalvageyardandprocess100,000tonsofagriculturallimeeachyear.
Adequatemanpowerfromfamilymembers,GPSguidancesystem,yieldmonitorandaPiperairplanearemajoringredientstheGallowaysrelyonintheirfarmingoperation.
“Purchasing a model MT635
wheel tractor made a perfect match for our 12-row planter
and 30-foot toolbar.”
10•ChallengerRevolution•Winter2008
ByDennyEilers
Delta growers Ben and Chase Downing are standing firm in cotton,
but they’re also taking a close look at a traditional Midwest crop —
corn.
In 2007, their corn acres climbed to 25 percent of their crop operation.
Soybeans made up another 25 percent, while cotton remained “king” at
50 percent on this more than 3,500-acre farm.
“We’re looking at good prices for corn,” says Ben Downing. “Plus, corn
helps us with our rotation and fits in well with our irrigation program,” he
adds, noting that corn can be rotated with both cotton and soybeans.
Located near Morgan City, Mississippi, Downing Farms has already
been growing corn for three years. However, it was the expansion of
ethanol production in the Midwest and the corresponding increase
in corn prices that really peaked their interest. Corn is now attracting
traditional cotton farmers in the South and Southeast as a way to boost
profits.
According to the USDA, 2007 corn acres soared to 92.9 million, three
million more than anticipated. In the Delta and Southeast, corn acres
climbed as cotton acres dropped 28 percent to 11.1 million, the smallest
cotton crop since 1989. In the Downings’ home state alone, new corn
acres totaled more than 640,000 acres, putting Mississippi in the top 10
states for new corn acres in 2007.
Get water on, get it off
The thing that makes corn work so well on the Downing Farms, though,
is the water management system. In fact, the Downings use the same
irrigation plan for cotton, soybeans and now corn. The father-son team
distributes water evenly by furrow irrigation to thirsty crops during the
hot growing season. However, the field setup also moves heavy rainwater
off the field fast before flooding can occur.
“We’ve worked some 30 years to
improve our land leveling system,”
Ben explains. “We level to a one to two
percent slope in every field. Then we
form ridges for the planted rows with a
GPS Auto-Steer system … so they’re very
accurate.”
Crops are planted on the row ridges
after they have been shaped using A-B
lines with in-tractor Auto-Steer. Then,
irrigation water flows through the furrows to keep crops watered.
During the summer months, Chase can be found moving the watering
lines, keeping the system maintained and making sure plant roots get the
vital moisture they need.
Standingin
lookingat
“Wheel tractors work
just fine for the way we
have our land set up.”
BenDowninghashisfeetfirmlyplantedincotton,butlikealotofDeltafarmers,he’slookingtocornacrestohelpboostfarmprofits.
cotton,corn
ChallengerRevolution•Winter2008•11
“Seems I spent 35 years — all my farming life — redoing those ditches,”
Ben adds with a grin. “We started leveling land in the ‘60s, by eyeball
then, now we get it right using laser.”
Today, it’s all paying off in the form of good drainage, excellent
irrigation and higher yields. In the Delta, six-inch rains are common, so
good drainage is the flip side to a good irrigation plan.
It’s that plan, teamed with accurate planting and a managed program
of fertility, weed and pest control that consistently brings the Downings
above-average yields.
“By bringing everything into a GPS-based plan, we have more efficient
use of the land,” notes Chase. “We’re using every square inch to our
advantage. At the same time we’re saving fuel with less wear and tear on
the tractors.”
According to the Downings, their land forming approach and GPS
Auto-Steer system have allowed them to use only wheel tractors.
Recently, they added a Challenger MT655B wheel tractor from
Thompson Machinery, Inc. in nearby Greenwood to the farm operation.
“Wheel tractors work just fine for the way we have our land set up,”
reports Ben.
The Downings say that their GPS farming approach also lets them use
fertilizers more efficiently, putting nutrients in the row ridges exactly
where needed.
Cotton vs. Corn
Ben reports that corn production runs about the same in terms of cost
inputs as growing cotton.
For example, the Downings apply 130 units of nitrogen to cotton,
and 250 units to corn. However, cotton is often treated up to six times a
season with pesticides. And that doesn’t include the harvest aid or plant
growth regulator in the fall to defoliate leaves.
In contrast, corn and soybeans are normally treated with a fungicide by
air for disease protection only once in late summer.
“Acre per acre, corn inputs and cotton inputs are about the same,” Ben
adds. “But, today, with all crops, you really have to watch your cost inputs.
“For example, with cotton, the margin for profit is less, and you have to
learn where to cut back without cutting your throat.”
To help improve profit margins, Ben and Chase believe in forward
pricing and watch markets carefully for opportunities.
“When we can make a profit, we’ll book a part of the crop,” says Ben.
Another point the Downings like about adding corn to the rotation is
how well it fits the harvesting schedule.
Generally, they start harvesting corn in August and continue until
around September 15th. At that point, they switch to soybeans for
several weeks. By then, cotton is ready for picking, which normally runs
until November 1st.
“With corn, we’re able to have an efficient harvest season, which gives
us better use of labor and tractors,” Ben adds, noting that they normally
plant full-season corn hybrids by April 1 at a population of 32,000 plants
per acre.
Another point of consistency in the Downing crop plan is the use of
Roundup Ready® crops. All three crops — cotton, soybeans and corn —
are treated with Roundup herbicide for weed control, which lets them
plant fields side-by-side without fear of crop injury.
A True Family Operation
Progressive farming practices are nothing new to the Downing family,
nor have their management skills gone unnoticed. Ben was raised on a
farm and started farming with his uncle, Sam Thompson, in 1975. He’s
built the land base up from there, and his son Chase has helped add
to it. Today, Ben and his wife Kay, and Chase and his wife Crystal, are all
involved in the operation.
Meanwhile, in l983, Ben was named Young Farmer of the Year in the
county; and in 1998, Ben was a part of the National Soybean Leader
Program (one from each soybean state). He and Kay were flown to
California for meetings and also received a tour of the Chicago Board of
Trade.
In 2006, Chase followed in Dad’s footsteps and was named Young
Farmer of the Year in the county.
Now, with good management, and an eye to the future, corn is finding
a welcome home on this Delta cotton farm. n
Downingsayshislandformingpracticesandgentle1to2percentslopeallowhimtofarmmorethan3,500acresofDeltalandusingonlywheeltractors.
Chasecheckstheirrigationlinesthatfeedtherowfurrowsalongasoybeanfield.Downingfarmsusesthesamefurrowirrigationprogramforcotton,soybeansandcorn.
12•ChallengerRevolution•Winter2008
BySusanFotovichMcCabe
Social responsibility is giving way to new income for America’s
farmers. In particular, the growing awareness and commitment to
reduce greenhouse gas emissions is fueling the agricultural industry’s
carbon credits program.
A new concept to most Americans, the voluntary cap-and-trade
program allows agricultural producers and landowners to earn income
by storing carbon for credit through environmentally friendly farming
practices. Producers then sell those credits to a wide array of potential
buyers — from large corporations to public entities that are working
to reduce their own carbon emissions. Carbon credits are issued for
such conservation practices as no-till crop production, long-term grass
seeding practices, native rangeland enhancement, forestry and methane
capture programs. And while the income currently generated through
carbon credits is minimal for now, agricultural experts believe it will grow
to become another commodity for U.S. producers.
“Right now, carbon credits are like a very thin layer of frosting on a
multi-layer cake. But all indications are that down the road, it will be
a nice commodity for producers,” says Dale Enerson, director of the
National Farmers Union Carbon Credit Program in Jamestown, N.D.
Farmers Union aggregates carbon credits through the Chicago
Climate Exchange (CCX), the world’s first and North America’s only,
greenhouse gas (GHG) emission registry, reduction and trading system
for all six greenhouse gases (carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride). CCX
is a self-regulatory, rules-based exchange designed and governed
by CCX members. Its members make a voluntary, but legally binding
commitment to reduce GHG emissions. Those members who reduce their
GHG emissions below the targets have surplus allowances to sell or bank;
those who emit above the targets comply by purchasing credits.
According to Enerson, Farmers Union enrolls producer acreages of
carbon projects into blocks of credits that are traded on the Exchange,
much the same way other agricultural commodities are traded.
Although market prices vary, producers who store carbon through
soil conservation practices, for example, can earn an average $3 to $4
per metric ton, which equates to about $2 per acre for no-till and $4 per
acre for grass stands, less the aggregation fees. Today’s per-ton price is
approximately three times what it was a little over two years ago. That
increase, says Enerson, lays the foundation for growth. A carbon credit
carbon creditsyournext commodity?Are
ChallengerRevolution•Winter2008•13
program is even more lucrative for those in forestry, where the average
price can be $15 to $20 per acre. In all, says Enerson, it’s not bad for a
commodity you can’t hold in your hand.
Enerson, himself, participates in a carbon credit program through
land he rents in Western North Dakota. In 2005 and 2006 combined, he
generated a slim $400 for the seeded grass credits he collected from 180
acres.
In most cases, producers are often selling the credits to Fortune 500
companies, multinational corporations, utility and power companies and
others that have been buying carbon credits for a number of reasons.
While many of these organizations are buying credits as a show of social
responsibility, many are truly concerned about reducing greenhouse
gas emissions. Still others buy credits as an investment in the event
that carbon prices increase, as credits can be bought and sold easily by
brokers.
Moorhead, Minn., producer Noreen Thomas is currently negotiating
with corporate partners to sell the carbon credits she has accumulated
through environmentally friendly farming practices on her family’s fifth-
generation farm. Thomas and her husband farm 1,200 acres of crops and
maintain a small pork operation. They have decided to skip the “middle
man” and the related aggregate fees by speaking directly with company
officials to sell their credits. Working off a five-year contract, Thomas
anticipates generating between $1,200 and $3,000 annually in carbon
credit sales.
“I’m basically paying myself to do the paperwork and manage it,” says
Thomas. “We look at it as a little extra vacation money or money to have
fun with.”
That income is likely to grow for both Thomas and other producers as
society places even greater emphasis on cleaning up the environment,
says Dave Miller, director of research and commodity services for the
Iowa Farm Bureau in West Des Moines. Miller calls today’s voluntary
carbon credit program a “developing market,” but anticipates it will
become regulated in the future through local, state and federal initiatives.
“The demand for emission reductions will be driven by social
and scientific means,” he insists. “If society places no value on the
environment, nobody is going to pay for emission reductions. “
Miller believes — based on the “amount of discussion and rhetoric”
about climate changes — legislators will eventually mandate the carbon
credit program. However, he’s the first to say that no timeline is in place
for such a change.
“Once again, as society becomes more informed, the United States will
make more informed decisions about public policy,” says Miller.
Of course, if emission levels continue to rise, the number of companies
wanting and needing to buy credits will increase. This, in turn, will
push the market price up and encourage more producers to practice
environmentally friendly farming, generating more carbon credits for
sale.
Columbus, Ohio-based utility American Electric Power (AEP) is a
leading advocate of the carbon credit program. AEP is one of the largest
electric utilities in the United States, delivering electricity to more than
five million customers in 11 states. Melissa McHenry, AEP’s manager of
corporate media relations says the company recognized more than a
decade ago that the emissions of its coal-fueled fleet of power plants,
including greenhouse gas emissions (GHG), would have a significant
impact on the future of the company.
Instead of waiting for regulations to force it to respond, McHenry says
AEP faced the challenge early with innovative, first-of-a-kind approaches
designed to allow the continued use of coal to generate electricity in a
carbon-constrained world.
In 2003, AEP was one of the first and largest U.S. utilities to join the
CCX. Through its membership, says McHenry, AEP is committed to
gradually reducing, avoiding or sequestering its GHG emissions by six
percent below the average of its 1998 to 2001 emission levels by 2010.
Between 2003 and 2006, AEP has achieved approximately 39.2 million
metric tons of GHG reductions.
However, McHenry says because costly equipment upgrades and lack
of proven technology prohibit AEP from making sweeping changes all
at once, they may purchase credits from producers to help meet their
commitment and are supportive of a cap-and-trade program such as this.
“We’ve long believed that as the leader in our industry on the climate
change issue, it is important for AEP to go beyond simply talking
about what should be done and actually make real reductions in our
greenhouse gas emissions,” says Michael G. Morris, AEP chairman,
president and CEO. “Equally important, we believe that market-based
approaches are the best and most cost-effective way to achieve emission
reductions.”
At the producer level, both Enerson and Miller say the income
generated from selling carbon credits may not be enough yet to prompt
farmers to make the switch to environmentally friendly farming practices.
Most will do it because of their genuine concern for the environment.
Those who already do can learn more about enrolling in a carbon credit
program by visiting websites maintained by the Iowa Farm Bureau,
Farmers Union and Chicago Climate Exchange and by talking with their
local extension agents. n
Reprintedwithpermissionoftheartist.
14•ChallengerRevolution•Winter2008
ByTharranE.Gaines
When he took delivery of a Challenger® MT945B articulated tractor
from Florida-based Kelly Tractor this past summer, Garry Motes
certainly didn’t have any aspirations of owning the first Challenger
4-wheel-drive tractor sold in North America. He was just looking for a
little diversity and a new model to replace part of his aging fleet.
At least that was the case with the first one. When he took delivery of
a second MT900B Series model this past October, it was because he liked
what Challenger had to offer.
Having started a commercial land leveling business just four years ago
with just five scrapers, Motes is already up to 18 four-wheel-drive tractors
and an equal number of laser-guided scrapers.
“I wasn’t looking at getting into land leveling when I did,” he admits. “I
used to be in the custom fertilizer application business… and still do a
little of that,” he relates. “Plus, we did some commercial trucking for a few
of the lettuce growers.
“However, there was an operator here in the ‘Glades that we were often
waiting on to get land leveling done so we could do our job,” he explains.
“So I approached him one day about buying him out; and that’s how we
got started.”
It wasn’t long, however, before the business began to grow, prompting
Motes to add even more units. Today, his crews can generally be found in
a 60-mile radius of the home base in Belle Glade, Florida, leveling fields
for everything from sugar cane to sod production and vegetables.
“We don’t do any work for construction,” he relates. “It’s strictly
agricultural work. In fact, two of our largest customers are U.S. Sugar,
which is one of the country’s largest sugar producers and TKM, which is a
big lettuce grower in the area.
“On any given day, we’ll have crews in about seven different places and
we’ll usually run at least two machines at each location, but will go up to
as many as four or five, depending on the situation,” he adds.
Motes explains that if the field is being leveled for turf or vegetables, it
generally has to be “flat” level all the way across the field. However, if it’s
being prepared for sugar cane, the field is typically crowned in the center
of each 37-acre block and sloped one inch per 100 feet to each side for
fieldFirstinthe
ThefirstMT900BsoldinNorthAmericatakesonFloridalandlevelingduties.
ChallengerRevolution•Winter2008•15
drainage to the lateral ditches.
“The vegetable growers will relevel
a field every time they put in a new
crop, which is usually twice a year,”
Motes explains. “The sugar cane
growers will also level every time they
replant; but that only happens every
three to four years.
“They used to get more years out of
a cane crop,” he says. “But since they
started running mechanical harvesters,
the fields get chewed up a lot quicker.”
Although his custom work is primarily limited to land leveling and
some fertilizer application, Motes says he’s not immune to helping some
of his smaller customers with other chores, like discing, mowing and
tillage.
That’s part of the reason his first purchase from Kelly Tractor was a
Challenger MT665B tractor that he acquired last spring.
“We’ve got a smaller 15-yard scraper that we’ll use with that tractor on
certain jobs,” he adds. “And, it’s got the PTO, which is something we don’t
have on our 4-wheel-drive tractors.
“We’ve also found that the CVT transmission is a real advantage when
pulling the small scraper,” he continues. “You can always find the right
combination of ground speed and engine speed without wasting extra
fuel or power.”
Motes says it was his satisfaction with both the MT665B and the
Caterpillar dealer that helped convince him to purchase the new MT945B.
“I try to keep all my tractors under the manufacturer’s extended
warranty period, which means I generally trade them at about 4,900
hours,” he says, noting that at a rate of 1,300 to 1,500 hours per tractor,
per year, that happens around every 3 ½ years. “I already have a mix of
green and red tractors. I figured I might as well try yellow, too.
“The operators just love the MT945B,” he continues. “I think it’s got a
little more power than the other tractors and it’s weighted really well for
the horsepower.”
Motes says he also likes the accessibility built into the MT900B Series,
including easy access to the fuel tank, the transmission, fluid reservoirs
and the hydraulic pump.
“We use the hydraulic pump continuously, which, for us, means it’s a
wearable item,” he adds. “Fortunately, they’ve got it positioned where a
guy can get to it for service or change it out,” he adds.
“So far, though, we’ve had very few problems. And on those rare
occasions we’ve had to call Kelly Tractor with a warranty issue, they’ve
been on it immediately.”
With each tractor covering 60 to 70 acres per day for a total of around
200,000 acres annually, Motes says he can’t afford for a tractor to be
down very long.
“We don’t charge by the acre, but rather by the hour,” he says. “That
seems to be the fair way for everyone, since flat leveling takes longer
than a crowned slope.”
Of course that also means that on those days when the Challenger
MT900B models gets more work done in an hour than the other
machines, the customer just comes out ahead. n
“I think it’s got a little
more power than the other
tractors and it’s weighted really
well for the horsepower.”
GaryMotes(left),ownerofMotesLandLeveling,andGregPitts(r),officemanagerforthecompany,visitwithKellyTractorsalesrepresentativeCraigBrantabouttheirMT665Btractor.
MotessaystheMichelintires,whichcomestandardontheMT900BSeries,seemtoprovidebetterflotationandtractionthanthetiresonhisothertractors.
Motes Land Leveling • Belle Glade, Florida • Commercial land leveling
16•ChallengerRevolution•Winter2008
Attention to detail and accurate and efficient record keeping are es-
sential requirements of any successful business in this technological
age; and farming is no exception. That’s why the GTA Console I with Power
Performance III from AGCO Advanced Technology Solutions is standard
on all MT600B tractors and optional on all MT500B models. Working in
conjunction with ground radar, the system offers more than 20 valuable
monitoring, control and comparative functions, including fuel/hour, area
worked, etc. Console II, which monitors everything from engine functions
to yield data, is also standard on all Challenger® 600 Series combines. How-
ever, once you’ve gathered the information, what do you do with it?
“Fortunately, Challenger GTA PC software products can help you get
the most out of available data, whatever the source,” says Mark Hansen,
product marketing manager for AGCO Advanced Technology Solutions
“It’s also designed to grow with you and your needs.”
Start with the standard-equipment GTA100 Communicator that lets
you calculate machine costs, service intervals, etc., from the basic work-
ing data generated by the GTA Console I or Console II. Then, when you’re
ready, add advanced software packages that allow record keeping, yield
mapping and variable-rate applications or planting with other pieces of
equipment.
GTA100 Communicator
GTA100 Communicator, which is comprised of three main working win-
dows — Farm and Resource Manager, Task Manager and Task Summary
— lets you make the most of valuable data logged on a GTA Console or
Fieldstar® terminal within a tractor, combine, or other machine. The data
can be quickly transferred to a PC, then is automatically organized as a
logical series of tasks relating to individual farms and fields, allowing a
clear, simple view of relevant information.
“Industry-standard import and export capabilities also lets you import
data from a several brands of equipment,” Hansen adds. “Or, you can use
the data with third-party applications, such as farm management soft-
ware.”
GTA200 Record Keeping
Based on GTA100 Communicator, GTA200 Record Keeping takes technol-
ogy a step further by enabling users to create reports on specific areas of
the business, such as fleet management, equipment/input usage and field
planning. GTA200 Record Keeping allows you to compile a complete re-
cord of all operations and applications, and provide enhanced crop trace-
ability for legislation purposes, increasing the value of farm produce. This
valuable program even includes an invoicing capability that generates
professional invoices from logged data.
GTA300 Mapping
Straightforward and easy to use, GTA300 Mapping is a cost-effective and
easy-to-use software program that allows the user to create maps using
geo-referenced data created with GPS positioning information. In addition
to using data gathered from tractors and combines, its open file structure
allows it to process data from many other systems. This powerful tool al-
lows the user to record and measure all operations, inputs and yields. This
accurate information can be used to control costs and also provide vital
traceability information in clear concise maps.
GTA400 Precision Farming
The GTA400 Precision Farming PC software package provides users with
the ability to generate highly accurate planned application maps to en-
sure that key inputs, such as fertilizer, seed and pesticide are applied at the
optimum rate within every field.
“It also allows farmers to build a detailed picture of every field’s strengths
and weaknesses, highlighting problem areas and those where different
levels of inputs are required,” Hansen continues.
Returns to the grower are maximized because inputs are only applied
according to crop requirement and at the correct rate.
“No matter which program you choose, though, GTA software has the
potential to maintain and improve profitability, fulfill regulatory require-
ments and/or add value at marketing,” Hansen concludes. “And sometimes,
that’s as important as machine efficiency itself.” n
TechCorner
Managementsoftwarefor every need
The leaves are changing, the temperatures falling, the machines are in. Don’t lock up your equipment just yet, now is the best time to prepare for
next season. The long days and longer nights may be gone for now, but your machines are still here. Make sure they are strong with AGCO Parts.
© 2007 AGCO Corporation
“I’M TIRED OF SPINNING MY WHEELS.
AT THIS RATE, I’LL BE HERE HALF THE NIGHT.”
“WE HEAR YOU.”
Slippage. It wastes time. It wastes money. Enter the MT800B Series Track Tractor. With superior traction, you get up to 10% less slippage. Think of it as doing 10 hours of work in a 9 hour day. By getting more power to the ground, the MT800B Series Track Tractor covers more acres than a conventional wheel tractor. The MT800B Series Tractors from Challenger are available now and sold exclusively through your Caterpillardealer. Don’t let this opportunity slip by. Call him and get on track.
Cat & Challenger are registered trademarks of Caterpillar. ©2007 AGCO Corporation CH503E07V01
For more information about Challenger, visit your local CAT dealer or visit us on the web at: www.challengerag.com
MT8OOB SERIES TRACTORS
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