Tuesday 14 March 2017

ARE TRAITS WORTH THE EXPENSE?

TRAITS CAN BE WORTH THE MONEY, BUT PROFITABILITY DEPENDS UPON PEST PRESSURE AND OTHER FACTORS.

Farmers quickly gobbled up corn and soybean transgenic traits when federal regulators first approved them in the 1990s. Initially, those traits zapped weeds and insects with nary a hitch.  
For the most part, genetically modified traits still work. “Some have struggled with resistance issues, but these traits do what they say they will,” says Joe Lauer, University of Wisconsin (UW) Extension agronomist. “Conversely, they are expensive, but with all the licensing and regulations, companies have to make a buck, too.”
Therein lies the rub. As a rule, traited hybrids cost more money than conventional ones.

SO ARE THEY WORTH IT?

Superficially, the decision seems simple. “Buy the traits you need,” says Lauer.
If you farm in east-central Illinois where corn rootworm can swarm cornfields like flies on a rotting animal carcass, a rootworm trait needs to be part of your rootworm-management program. If resistance to one trait has developed, another trait in a pyramid package will do, coupled with tools like crop rotation and a soil-applied insecticide.
Meanwhile, farmers in northern Wisconsin who rotate alfalfa and soybeans every so often with their corn, where rootworm is seldom a problem, likely don’t need a corn rootworm trait. That’s because by themselves, traits don’t increase yields.
Since corn traits hit the market 20 years ago, U.S. annual corn yield gains have clipped along at around 2 bushels per acre. Compare that with the mid-1950s yield gain from .8 bushels to 1.9 bushels per acre as a result of widespread use of hybrid corn, pesticides like 2,4-D, commercial nitrogen fertilizer, and on-farm mechanization.
Although traits have maintained the annual rate of U.S. corn yield gain, they haven’t increased it, says Bob Nielsen, Purdue University Extension agronomist.
“Current transgenic traits protect yields,” adds Lauer. Sill, yields won’t increase if pests are not present.
Seed price, though, complicates matters. Hybrids with trait packages don’t always cost more than conventional hybrids. Often, though, they do.
“With a $100- to $200-per-bag hybrid difference, I question if you can make up that difference through traits,” says Lauer.

YIELD IMPACT

Lauer bases these findings on the Wisconsin Corn Hybrid Performance Trials dating back to 1973. Each year, this trial tests more than 500 hybrids at 14 sites around Wisconsin with the goal of providing unbiased performance comparisons of hybrid seed corn for the state’s farmers. Lauer began including traited hybrids in the trials when they debuted in 1996. Along with UW agricultural economists Guanming Shi and Jean-Paul Chavas, Lauer conducted a statistical analysis showing that yields of hybrids with genetically modified traits varied widely.
In most cases, higher yields did result with traited hybrids. That was particularly true with European corn borer (ECB)-resistant hybrids. On average, ECB-resistant hybrids outyielded conventional hybrids by more than 6 bushels per acre.
“Hybrids with this trait had no yield drag,” says Lauer. “It (the ECB trait) did well right from the start.”
That’s not the case with corn rootworm traits, though. On average, yields of hybrids with these traits trailed the trial average by 12 bushels per acre.
“As a group, growers need to be careful with rootworm-resistant hybrids,” says Lauer. “Some years they do well, but most years, they don’t.”
Stacked traits helped. One example is a triple stack in which a herbicide-tolerant hybrid is teamed with traits that resist ECB and corn rootworm. In these cases, yields were 2 to 3 bushels per acre higher than those of conventional ones.
Still, that’s good, isn’t it?
On a yield basis, it’s questionable, especially if you’ve paid a hefty premium for the trait package.
“Yield increases have been underwhelming,” says Lauer.
Let’s say you have a triple-stack hybrid that gleans a 10-bushel-per-acre corn yield edge over a conventional one. With $3-per-bushel corn, you can pay up to $30 per acre more in seed costs – or $69 a bag. (This assumes one bag plants 2.3 acres.) If seed costs more than that, be wary.
“The bottom line is that if there is a price difference between hybrid A and B that is greater than $75 per bag, be careful about buying the more expensive hybrid,” says Lauer.

REDUCING RISK

There’s more to your seed decision than yields, though. You’d probably have steam churning out of your ears akin to the cartoon character Yosemite Sam if a hybrid that yielded 250 bushels per acre dropped to 100 bushels the next year.
That’s another perk of traits, as they can reduce this variability. The UW scientists found that even if transgenes produced only slightly higher yields in hybrids, they lower year-to-year yield variability. In a sense, this mimics a slight yield increase. Shi, Chavas, and Lauer found the downside risk of lower pest pressure mimicked a 0.8- to 4.2-bushel-per-acre yield spike, depending on the hybrid.
“Reducing yield extremes is one route in which transgenics can help,” says Lauer.
Lower variability that translates into more consistent yields between years eases agronomic and economic farm planning.
This variance reduction is most pronounced in low-yielding environments, says Lauer. The UW trials show that grain yield rises among lower yielding hybrids with transgenic traits compared to conventional hybrids.
 
Thus, the more transgenes a hybrid contains, the lower the variance, he says.

PESTS STILL EXIST

Pest pressure also can determine the trait payoff.  
“Last year, we didn’t see a lot of rootworm pressure in the heart of the Corn Belt,” says Jeff Hartz, director of marketing for Wyffels Hybrids. “That can push some growers toward a double-stack trait (herbicide-tolerant and European corn borer-resistant).”
Just don’t get caught. Corn rootworm still lurks in cornfields, and it can slice yields.
In 2016, the Iowa Soybean Association (ISA) On-Farm Network found many eastern Iowa fields had high beetle numbers. If eggs laid last summer hatch this year, it could set the stage for infestations. In some fields last summer, beetle numbers were more than seven times the threshold for adult beetle numbers.
Ditto for ECB. Although it’s almost vanished, ECB can overwinter on 200 types of plants.
“It is still there,” says Hartz. In eastern Iowa, there have been cases where ECB has sliced non-GMO yields by 30 to 40 bushels per acre, he says.
Hybrids high in traits like SmartStax, which contains eight herbicide-tolerant and insect-resistant traits, will be under scrutiny by farmers for 2017, says Hartz.
“It will be a harder sell in 2017,” he says. “But farmers also have to make sure they don’t cut too many corners.”
In the case of Noah Hultgren and his family, who farm near Raymond in central Minnesota, a diverse rotation (sugar beets-kidney beans-sweet corn-field corn-soybeans) has helped keep insects at bay.
“We have not had to face as many issues as some,” he says. “We have had some glyphosate-resistant weeds, though.”
To counter them, the Hultgrens have planted Liberty Link (glufosinate-tolerant) hybrids on some corn acres before planting LibertyLink soybeans for the first time in 2016. In their Roundup Ready sugar beets, they also have resorted to some cultivation and hand weeding due to glyphosate-resistant weeds.
In the more intensive rotations of the Corn Belt, though, resistance has been more severe.
“We’ve considered cutting down or going without traits, but the risk of yield loss is still too great,” says Ron Moore, a Roseville, Illinois, farmer. In his own neighborhood, ECB infestations have occurred in non-ECB-resistant corn and caused yield losses.
Moore’s concern also extends to weeds. In 2017, Moore plans to plant some Roundup Ready 2 Xtend soybeans accompanied by an approved dicamba herbicide formulation.
“We are seeing some herbicide-resistant weeds,” he says. “Preventive treatments that prevent weed escapes are cheaper than rescue treatments. Traits cost money, but the benefits are more than the cost of seed,” he explains.
In some cases, trait use transcends agronomics. “We have producers who have 50,000- to 60,000-acre grain farms in western Canada,” says Jay Bradshaw, president of Syngenta Canada. “They want technology to control disease, weeds, and insects. But when you talk more with them, it is also about time management. There are fewer people available to do on-farm work. Traits can help them manage their farms.”

SEED FIRST

Think of buying seed like buying a pickup. “You have different options, but at the start, you focus on the truck itself,” says Cole Hansen, portfolio marketing leader for Mycogen Seeds. “You can buy all the traits there are, but it won’t mean increased yield without pest pressure. Selecting the correct hybrid for that individual farm is key before addressing pest concerns.”
Low corn and soybean prices have caused seed firms to ramp up offerings of less-expensive seed.
“We have expanded our trait choices, which include lower-priced options,” says Duane Martin, Syngenta commercial traits lead. When pest pressure is high, stacked traits with multiple modes of action are a sound agronomic choice. Where pest pressure is low, though, a single trait can provide the needed protection, he says.
“With margins like they are, I think farm managers can make a difference by employing field-by-field insect infestation history and by putting the best fitting soybean varieties and corn hybrids on those acres,” he adds. “There are cases where growers want to focus more on genetics and less on traits, and vice versa. We want to make sure those choices are available to growers to help make sound and cost-effective trait decisions.”

TRANSGENIC WILD CARD

Transgenes inserted in seed offerings can often be a yield wild card. “There can be a tremendous yield difference when we switch transgenes in and out of a hybrid,” says Joe Lauer, University of Wisconsin Extension agronomist. Swings of 20 bushels per acre or more have occurred either way between conventional and assorted trait packages in Wisconsin Corn Hybrid Performance Trials.
“There will be interaction between transgenes and underlying genetics,” he says. “The point is, there are yield interactions (including yield drag) that go on. Within trait technologies, there are good and bad hybrids. Each hybrid has to stand on its own.”

MULTIPLE LOCATIONS KEY HYBRID SELECTION

Each year, you spend time deciding whether or not to use products promising to coax just a few more bushels per acre out of your corn. Just don’t let these distract you from spending time on the decisions like seed that can literally cost you your family’s farm.
Each year, the Wisconsin Corn Hybrid Performance Trials test more than 500 hybrids at 14 Wisconsin sites with the goal of providing unbiased performance comparisons of hybrid seed corn for the state’s farmers. Year in and year out, there’s a 72-bushel-per-acre difference within relative maturities between top and bottom yielding varieties, says Joe Lauer, University of Wisconsin Extension agronomist.
So how do you sort out the diamonds from the dogs?
“Use independent yield-trial data and multilocation averages to pick hybrids,” says Lauer. Picking multiple locations is more accurate than on-farm trials, he says.
On-farm trials do have merit. A random hybrid pick has a 50:50 chance of beating the trial average. Meanwhile, planting the best hybrids from on-farm trials can beat trial averages 67% of the time.
However, findings in the Wisconsin performance trials show hybrid selection with a multi-location assessment can beat trial averages 71% to 74% of the time. The more locations you have, the better the odds have been of hybrids beating the trial average, he adds.
Gleaning these results can enable you to concentrate on the top-performing hybrids. “Don’t care about all hybrids, just care about the top-yielding top 20%,” he says.
Look at individual hybrids, too, whether or not they are traited. Lauer notes when traited hybrids were first introduced in 1996, their yields eclipsed those of conventional hybrids.
“But in the last three to five years, conventional hybrids have come back,” says Lauer. We still always find conventional hybrids in the top 10 of the same relative maturities.”
Don’t be distracted by a hybrid family. Seed companies will often sell a new hybrid as belonging to an outstanding family. Like your own family members, though, there can be stark differences among them.
“We see a big difference among individual (trait) technology packages within a hybrid family,” he says. “Each one has strengths and weaknesses. Try to measure just genetics. Hybrids within a family are not the same.”

Avian Influenza outbreak: NCDC takes action

Nigeria Centre for Disease Control (NCDC), has moved in to tackle the
outbreak of Avian Influenza virus known to affect the poultry
industry, which currently has been identified as a health threat to
humans.
NCDC has reportedly  visited health facilities around
affected farms and live bird markets, to review patients health as
regards the current outbreak of the Virus.
Samples have been collected from patients in five hotspot zones in
Abuja, Kaduna, Kano, Bauchi, Plateau, with Influenza like illnesses or
Severe Acute Respiratory Illnesses to be tested.
Outbreaks of some avian influenza A viruses in poultry have been
associated with illness and death in people in Asia, Africa, Europe,
the Pacific, and the near East.
More updates on the outbreak will be communicated as soon as NCDC
reveal their findings from samples collected.

Arctic sea ice may disappear

Scientists have said that the Arctic sea ice could vanish in summers this century even if governments achieve a core target for limiting global warming set by almost 200 countries.
The ice has been shrinking steadily in recent decades, damaging the livelihoods of indigenous people and wildlife, such as polar bears, while opening the region to more shipping and oil and gas exploration.
According to Inquirer.net, with the total population of polar bears reduced to around 26,000, the struggle to survive without the floating ice platforms from which they hunt seals and other prey would be their only chance.
Under the 2015 Paris agreement, governments set a goal of limiting the rise in average world temperatures to well below 2C (3.6F) above pre-industrial times, with an aspiration of just 1.5C.
However, according to some lecturers at Exeter university, United kingdom, Dr. James screen and Dr. Daniel Williamson, “The 2C target may be insufficient to prevent an ice-free Arctic”.
These scientists stated this in the Nature Climate Change journal after a review of ice projections.
They said a 2C rise would still mean a 39 per cent risk that ice would disappear in the Arctic Ocean in summers, They estimated a 73 per cent probability that the ice would disappear in summer unless governments made deeper cuts in emissions than their existing plans, adding that temperatures would rise 3C based on current trends.
Screen and Williams however noted that with 1.5C of warming the Ice was virtually certain to survive, and this would  come a relief to indigenous peoples whose way of life, and livelihood, depend on ice persisting through the summer months
This month the extent of Arctic sea ice is rivaling 2016 and 2015 as the smallest for the time of year since satellite records began in the late 1970s. The ice reaches its coldest season in March and warmest in September.

Countdown to NAA 2016/17


There is no doubt that the agricultural sector continues to experience sizable growth and is a productive and competitive force for national economic development. To this end, AgroNigeria believes that operators in the agricultural space who are making things happen, deserve to be recognised.

Hence, the NIGERIA AGRICULTURE AWARDS 2016/17 designed to celebrate individuals who have performed exceptionally in contributing to the development of the agricultural sector in Nigeria, across varied value chains will be holding alongside, the Feed Nigeria Summit.

The event birthed in 2014, has since been acknowledged as the ultimate medium for celebrating excellence in the agro-allied sphere. Against this backdrop, this year’s NAA promises a thrilling experience.

Venue: Grande ball room, Intercontinental Hotel, Victoria Island, Lagos State
Date: Friday 7th April, 2017

For more enquiries, contact: 08099207555, 08033321575,
Emails: irmbaram@agronigeria.com.ng, legalmark2002@yahoo.com
This event is strictly by invitation.

SAHEL CAPITAL AND CCA ANNOUNCE INVESTMENT IN CREST AGRO PRODUCTS

Sahel Capital, fund managers for the Fund for Agricultural Finance in Nigeria (“FAFIN”) and CardinalStone Capital Advisers (“CCA”), a Nigerian Private Equity Fund Manager, are pleased to announce that definitive agreements have been executed for an investment in Crest Agro Products Limited (“Crest Agro”), an integrated cassava processor based in Kogi State.
Founded in 2013, Crest Agro was set up to harness opportunities in the cassava starch sub-sector. The Company’s vision is to become the leading producer of food grade cassava starch for industrial users in Nigeria and the broader West Africa sub-region.
The business is led by an experienced management team with deep sector expertise and a passion for the transformative power of agriculture in Nigeria.
With 13,000 hectares of land for farming and an outgrower scheme that has reached over 400 smallholder farmers, Crest Agro has developed a robust farming operation which is well positioned to meet the raw material needs for its starch processing facility.
With this transaction, Sahel Capital will be partnering with CCA, the promoters of Crest Agro, who have also decided to participate in this round of funding.
Commenting on the investment, Mr. Mezuo Nwuneli, Managing Partner at Sahel Capital, said, “The investment in the cassava sector speaks directly to two pillars of FAFIN’s investment strategy: import substitution and smallholder farmer impact, and after a thorough analysis of the opportunities in the sector, we decided to invest in Crest Agro. Crest Agro has consciously set out to address the structural challenges limiting players in the sector, and we were particularly happy with the quality of the team and the level of execution ability that they bring to the table.
We are also excited to be partnering with CCA, who are top notch investors, and look forward to the transformative impact that we will achieve with the investment in Crest Agro”.
Also commenting on the investment, Mr. Yomi Jemibewon, Managing Director at CCA said, “We believe that Crest Agro is on its way to successfully capturing the industrialization opportunity presented by Nigeria’s cassava value chain, and will play an important import substitution role for the economy.
This is in line with a pivotal aspect of our strategy at CCA, of making transformational investments in Nigerian SMEs. At every step throughout our journey with Crest Agro, we have made concerted efforts to seek out and attract partners who will help ensure that the Company delivers on its vision of pioneering the industrialization of cassava in Nigeria.
To this end, we are extremely excited to be joined on this journey by Sahel Capital — an investor with deep local roots and a strong understanding of the sector, who will also be bringing considerable operational expertise to the business.”
There is strong demand for starch in the FMCG, brewing and pharmaceutical sectors, and as the Nigerian middle class grows and more companies look to enhance their ability to source raw materials locally, this demand-supply gap is expected to grow substantially.
Crest Agro is located in the number one cassava growing region in Nigeria (North Central) and with its starch processing plant coming on stream by the end of the year, the company is uniquely positioned to grow significantly and become a market leader within the next few years.
FAFIN and CCA’s investment in Crest Agro will be geared towards facilitating the setup of the company’s starch processing facility, as well as helping to expand farming activities.
Speaking on the investment, Mr. Dele Ogunlade, CEO of Crest Agro Products said, “I am truly excited by the challenge of building Crest Agro into Nigeria’s leading producer of cassava starch. My team has been laying the groundwork over the last few years, and the funding and strategic partnership from Sahel Capital and CCA will provide the support we need to achieve this vision.”
With this round of investment in Crest Agro Products, the Company’s Board of Directors will be reconstituted to include one independent director, who will be the Chairman of the Board, bringing years of corporate experience and industry expertise to the company. Mr. Mezuo Nwuneli and Mr. Olaniyi Oladejo from Sahel Capital as well as Mr. Femi Ogunjimi and Mr. Yomi Jemibewon from CCA will also be joining the Board of Crest Agro Products.